Altri SGPS — Management Reports 2009

Aug 28, 2009

June 30, 2009

Altri, S.G.P.S., S.A. (Open capital company) ALTRI, S.G.P.S., S.A. (OPEN CAPITAL COMPANY)

Directors' Report

Consolidated Accounts

Rua General Norton de Matos, 68 4050-424 Porto Share Capital: 25.641.459 €

INDEX

Introduction	2
Stock exchange evolution	4
Group's activity	6
Financial review	10
Second semester 2009 outlook	11
Corporate Governance	12
Legal matters	12
Declaration of responsibility	14
Closing remarks	14

To the Shareholders

Pursuant to the legal requirements, the Board of Directors of Altri, S.G.P.S., S.A. (Open Capital Company) hereby presents its Directors' Report for the first semester of 2009.

INTRODUCTION

Altri was incorporated as of March 2005, as a result of the demerger of Cofina. Altri is a reference European producer of bleached eucalyptus pulp and is a public listed company included in 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 and biomass.

As of June 2008 Altri materialized a reorganization that implied the split of Altri's two business units that manage equity holdings in the pulp and paper sector and in the steel and warehousing systems sector. Thus, Altri maintains the management of pulp and paper business unit, while the new company created in the demerger process (F. Ramada Investimentos, SGPS, S.A.) stays with the management of the steel and warehousing systems business activity.

Nowadays, Altri major assets are three pulp production mills, with a capacity higher than 500 thousand tonnes/year of bleached eucalyptus pulp. The company has investment projects in conclusion that will increase its production capacity to more than 900 thousand tonnes/year in 2010.

Altri runs more than 80 thousand ha of forests in Portugal, fully certificated by Forest Stewardship Council (FSC), one of the world's most known 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.

The last years were highlighted by various acquisitions that allowed Altri to reinforce its position in its operating markets and by the development of a set of expansion activity projects.

DIRECTORS' REPORT

The most significant events in Altri's activity in the first half of 2009 are as follows:

• Celbi's expansion capacity project: the Celbi's project – double its pulp production capacity - is in the conclusion stage at the end of the 1st half of 2009. The mill is in an intermediate stage of the learning curve. The final installation of the cogeneration turbine is expected to occur in the first quarter of 2010;

• Celtejo's bleaching line project: After the temporary stoppage ended in 15 April 2009 at Celtejo (in which was performed production optimizations), this mill practically completed BEKP production learning curve;

• Over 82,000 ha of forest area under management: at the end of the 1st half of 2009, Altri has 81.9 thousand ha of forest under management in Portugal; and

• Biomass: Figueira da Foz (Celbi industrial unit) power plant entered into operation and Constância (Caima industrial unit) power plant is in the conclusion stage, with approximately, 32 MWh and 13 MWh of capacity, respectively. At the end of the 1st half of 2009, EDP Bioeléctrica (50% participation held by Altri) had already 42 MWh electric energy produced from forestry biomass. EDP Bioeléctrica holds licenses to produce over 120 MWh electric energy produced from biomass – is the major player in this market, with a market share of, approximately, 50% of the total licensed by the Portuguese State.

Currently, Altri's investments can be resumed as follows:

STOCK EXCHANGE EVOLUTION

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

PSI 20 recovered in a remarkably way in the first half of 2009, following the international trend. Nevertheless, there are two distinct periods to be considered in the first semester of 2009: until the beginning of March, during which this index reached the lowest point on the 9th, and the period forward, which showed a consistent recovery. During four months, the Portuguese stock market presented a 22% recovery, as has happened in the rest of Europe and in United States of America.

Altri, as the other listed companies, also followed Portuguese stock market's trend, recording a decline in share price until March 2009 and a recover from that date on.

Altri's shares price recovered 6.1% in the first semester of 2009 and closed the period bearing at 2.23 Euro per share, with a market capitalization amounting to 229 million Euro. During the first semester of 2009, 43 million shares of Altri were transacted in the stock market.

The main events that distinguished the stock evolution during the first semester of 2009 may chronologically be described as follows:

Stock exchange evolution

• 9 January 2009 Altri informed the permanently shutdown of its subsidiary CPK – Papel Kraft, S.A. (kraft sack paper unit). This strategic decision was taken due to the negative environment currently felt in kraft sack business and the negligible current impact of CPK to Altri's profit. This fact allowed Altri to reinforce its strategic position in its core business: forest management and pulp production;
• 25 March 2009 Altri announced the financial performance for the year 2008, with a net profit (attributable to company shareholders) of 4.67 million Euro. Operating income amounted to 280 million Euro, a 3% decrease when compared with 2007. EBITDA amounted to, approximately, 69 million Euro, recording a 16% decrease in comparison with 2007. The company recorded an impairment loss of approximately 5.8 Million Euro, which is essentially related to Celtejo stocks. Note that CPK (unit closed in December 2008) was fully supplied by Celtejo pulp;
• 27 May 2009 Altri communicated the results of the 1st quarter of 2009. Operating income amounted, approximately, 62.8 million Euro which represents a 18% decrease comparing with the 1st quarter of 2008. EBITDA exceeded 9.5 million Euro, a 52% decrease compared with the 1st quarter of 2008 (20 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 considered for the demerger process accounting impacts. The planned reorganization implies the splitting of Altri's two business units that manage equity holdings in the pulp and paper sector and in the steel and storage systems sector. This reorganization is part of a focusing and business transparency strategy, aiming at giving greater visibility to each area and increasing market perception of value. In January 2009 Altri announced the shutdown of its kraft sack paper unit (CPK – Papel Kraft, S.A.). This fact allowed Altri to reinforce its strategic position in its core business: forest management and pulp production.

Paper and Pulp

The Group currently operates in this sector through Celulose do Caima, S.G.P.S., S.A., which, in its turn, holds participations in:

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

• Celbi – Celulose da Beira Industrial, S.A. (Figueira da Foz), producer and distributor of paper pulp;

• Celtejo – Empresa de Celulose do Tejo, S.A. (Vila Velha de Ródão) - producer and distributor of paper pulp;

• Silvicaima – Sociedade Silvícola do Caima, S.A. (Constância), owner and manager of the Group's forestry resources;

• EDP – Produção Bioeléctrica, S.A. – support in the Group energetic needs and expansion of its activity in a strategic sector.

During the 1st half of 2009 occurred a renewal in the demand and a decline in the pulp market price, reaching an historic minimum in April. A reduction in the offer was materialized by the announce of temporary stoppages and the permanent retirement of inefficient producers. Therefore, in the 1st quarter of 2009 were publicly announced the closure of about 1.5 million tonnes (mainly in Scandinavia) of pulp production similar to that produced by Altri, totalizing 2.7 million tonnes in the period May 2008 - March 2009.

These actions contributed to the European ports pulp stocks reduction, allowing the announce in late April of an increase in pulp price (from 480 USD/ton to 500 USD/ton). It was announced two additional 30 USD/ton increases in June and July (to 530 USD/ton and to 560 USD/ton). In late August BEKP pulp price was increased again (increase of 40 USD/ton to 600 USD/ton, effective from 1 September 2009).

Pulp price evolution clearly illustrates the verified demand recovery. The pulp stock level in European ports (indicator to determine the evolution in demand) reached in July the lower value since 2000 (according to Europulp – 21 August 2009).

DIRECTORS' REPORT

Moreover, in consequence of the financial crisis, capacity expansion and new units projects were postponed or abandoned.

The market price of pulp BEKP (according to PIX) at the end of the 1st half of 2009 stood at 506 USD/ton, corresponding to 356 EUR/ton. The BEKP average price was around 513 USD/ton, which corresponds to an average price of pulp BEKP of 385 EUR/ton.

CELBI GROUP

Celbi reached during the 1st semester of 2009 sales amounting to 172.8 thousand tons of pulp, volume 0.4% above the same period of 2008.

The pulp production reached 162.1 thousand tons, 2.6% below the amount in homologous period in 2008.

CAIMA GROUP

In the first semester of 2009, the sales volume amounted to 56.7 thousand tons, representing a 1.3% decrease compared to the first semester of 2008.

During the first semester of 2009, Caima Group produced 58.5 thousand tons of pulp, volume 0.4% above the preceding year and that configures an optimal exploration of the mill's production capacity.

Silvicaima developed an important role as supplier of other Group companies, being able to Group achieve, jointly with other outside suppliers, comfortable stock levels by the end of the first semester.

CELTEJO GROUP

In the first semester of 2009 the sales volume amounted to 71.2 thousand tons of pulp, corresponding to an increase of 81.8%, when compared to the homologous period of 2008. With CPK shutdown the Group ceased kraft sack paper production.

In the first semester, the pulp production amounted to 56.3 thousand tons, 22.7% above to the one recorded in the first semester of 2008.

Thus, in the 1st half of 2009, Altri produced, approximately, 276.8 thousand tonnes of pulp (270.5 thousand tonnes of pulp were produced in the same period in 2008).

The Group foresee to increase its production capacity in his units, with particular emphasis on Celtejo and Celbi. Altri estimated that in 2010 will reach a total production capacity of 910 thousand tons of pulp, which puts the company among the 10 largest in the world in the area of eucalyptus pulp.

During the semester, all Group mills scrupulously complied with the environmental legislation, namely regarding the parameters of liquid and gas emissions, as well as the management and recycling of solid waste.

FINANCIAL REVIEW

The consolidated financial information of Altri for the first semester of 2009 and its comparison with the same period of 2008, was prepared in accordance with the recognition and measurement principles defined by the International Financial Reporting Standards as adopted by the European Union.

Actually, Altri define the forest management and pulp production as its core business. However, in the 1st half of 2008, Altri developed its activity also in the steel (FRamada) and paper industrial business (CPK). FRamada demerger process took place (June 2008) and CPK unit was closed (December 2008). Therefore, FRamada and CPK activities in 2008 are recorded under the caption "Profit for the period from discontinued operations".

Despite CPK closure in December 2008, there were results in the 1st half of 2009 related to assets outflow. These results were also recorded under the caption "Profit for the period from discontinued operations".

Therefore, the key data and consolidated activity Group indicators can be summarized as follows:

	1H09	1H08	1H09/1H08
Operating income	141.497	153.396	-7.8%
Cost of sales	57.529	50.063	14.9%
External supplies and services	51.623	43.443	18.8%
Payroll expenses	16.414	16.130	1.8%
Provisions and impairment losses	1.050	0.657	59.9%
Other operating expenses	1.095	3.856	-71.6%
Total operating expenses (a)	127.710	114.148	11.9%
EBITDA (b) Margin	13.787 9.7%	39.248 25.6%	-64.9% -15.8 pp
Amortization and depreciation	15.479	14.470	7.0%
EBIT (c)	-1.693	24.778	-106.8%
Margin	-1.2%	16.2%	-17.3 pp
Profits related with assets classified as held for sale	0.000	-0.252	-
Gains and losses in associated companies	-0.628	-0.393	59.8%
Gains and losses in other investments	0.046	-0.148	130.9%
Financial expenses	-15.957	-21.901	27.1%
Financial income	2.725	4.778	-43.0%
Financial profit	-13.814	-17.916	-22.9%
Profit before income tax	-15.507	6.861	-
Income tax	2.324	-1.396	-
Minority interests	-0.032	0.094	-
Profit after income tax	-13.150	5.372	-
Profit for the period from discontinued operations	1.077	3.509	-69.3%
Consolidated net profit	-12.073	8.881	-

(amounts in thousand Euros)

(a) Operating costs excluding amortization

(b) EBITDA = Operating profit + Amortization and depreciation

(c) EBIT = Operating profit

In the 1st half of 2009 the operating income was 141.5 million Euro, which represents a decrease of 8% in comparison with the same period in 2008. This decrease was related with the international market price of pulp BEKP decrease.

During the 1st half of 2009 were sold, approximately, 300 thousand tonnes of pulp (13% increase in comparison with the 265 thousand tonnes in the 1st half of 2008). This fact is explained by the global recovery of the pulp demand and by production expansion capacity (related with bleaching and expansion capacity projects at Celtejo).

This increase in sales capacity implied an increase in variable costs. Moreover, Celtejo's start up costs (that occurred in April) contributed to an increase in fixed costs. Thus, 1st half of 2009 total operation expenses, excluding amortizations, amounted 127.7 million Euro, corresponding to a 12% increase comparing with the same period in 2008.

The decrease in BEKP pulp price was greater than the manufacturing costs reduction in the 2nd quarter of 2009, affecting EBITDA margin. It should be stressed that BEKP pulp price reached an historic minimum in April 2009 (480 USD/ton).

EBITDA for the first six months of 2009 was, approximately, 13.8 million Euro, compared with approximately 39.2 million Euro in 2008 (less 65%). EBITDA margin was 9.7%.

Operating profit (EBIT) reached, approximately, -1.6 million Euro. Amortization amounted 15.5 million Euro (7% increase in comparison with the same period in 2008).

The net loss from continued operations after minority interests, of forestry and pulp production areas was, approximately, -13.2 million Euro.

Total investment (CAPEX) reached 59.7 million Euro. The main responsible for the investment made was Celbi with, approximately, 55 million Euro.

The Celbi's project – double its pulp production capacity – is on time and on budget and in conclusion stage. Currently, the mill is able to produce 600 thousand tonnes/year of bleached eucalyptus pulp. The mill is in an intermediate stage of the learning curve and the conclusion is expected to occur in the last quarter of 2009.

Altri's nominal net debt as of June 30, 2009 was 814.9 million Euro. It should be stressed that all the financing needs are totally assured. As of June 30, 2009 Altri have 102.8 million Euro in cash and equivalents and, approximately, 68.9 million Euro of financing plafond not in use.

SECOND SEMESTER 2009 OUTLOOK

It is expected that in the 2nd semester of 2009, pulp price evolution clearly illustrates the demand recovery, following on the last days positive evolution.

Additionally, shall also contribute positively to Group's performance, the investment in industrial units of Celbi and Celtejo, allowing to achieve in 2010 a total production capacity of 910 thousand tons of pulp.

DIRECTORS' REPORT

CORPORATE GOVERNANCE

In compliance with the legal guidelines, the Company is exempted from presenting information related with Corporate Governance, as the presentation of this information is only mandatory jointly with the annual Directors' Report.

LEGAL MATTERS

Treasury stock

Pursuant to the requirements of article 66 of the Commercial Company Code ("Código das Sociedades Comerciais"), the Directors inform that as of 30 June 2009 Altri and its subsidiaries had no treasury stock and did not acquire or sell any treasury stock during the period.

Shares 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 30 June 2009, the held shares were as follows:

	Shares held
Name	30.06.2009
Paulo Jorge dos Santos Fernandes	6.815.746
Pedro Macedo Pinto de Mendonça	852.500
Domingos José Vieira de Matos	6.969.716
João Manuel Matos Borges de Oliveira (a)	9.246.660
Laurentina da Silva Martins	0

(a) 9.246.660 shares correspond to the total number of shares of Altri, S.G.P.S., S.A. held by Caderno Azul – S.G.P.S., S.A. which the administrator João Manuel Matos Borges de Oliveira is shareholder.

As of 30 June 2009, 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:

Exceeding 2% of the voting rights Pedro Miguel Matos Borges de Oliveira	Shares held 30.06.2009 4.333.340	Direct % of the voting rights 4.22%
Exceeding 5% of the voting rights	Shares held 30.06.2009	Direct % of the voting rights
UBS AG – ZURIQUE	9.778.608	9.53%
CADERNO AZUL – SGPS, S.A. (a)	9.246.660	9.02%
PROMENDO – SGPS, S.A. (b)	7.000.000	6.82%
Domingos José Vieira de Matos	6.969.716	6.80%
Paulo Jorge dos Santos Fernandes	6.815.746	6.65%
Ana Rebelo Mendonça Fernandes (c)	6.731.891	6.56%
Bestinver Gestión, SGIIC, S.A.	5.184.748	5.06%

(a) 9.246.660 shares represent the total shares of Altri SGPS, SA owned by Caderno Azul - SGPS SA, which the administrator João Manuel Matos Borges de Oliveira is shareholder;

(b) 7.000.000 shares of Altri – SGPS, S.A. held by PROMENDO – SGPS, S.A., are attributable to Ana Rebelo Mendonça Fernandes, manager and shareholder, holder of 59.6% of the capital;

(c) it is also, due to Ana Rebelo Fernandes Mendonça, in addition to the 7,000,000 shares of Altri - SGPS, SA held by the company Promendo - SGPS, SA mentioned in (b) also 1,162,000 shares of Altri - SGPS, SA held by the company Promendo – Promoções Empresariais SA, for which she is manager and shareholder, holder of 68% of their capital. Thus, in legal terms, are considered attributable to Ana Rebelo Fernandes Mendonça, a total of 14,893,891 shares, representing 14.52% of the capital and voting rights of Altri - SGPS, SA.

Altri was not informed of any participation exceeding 10% of the voting rights.

DECLARATION OF RESPONSIBILITY

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

As required by article 8, nr. 3, of the Stock Exchange Regulation, the Board of Directors declares that the accounts that integrate this report were not subject to Limited Review.

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.

CLOSING REMARKS

The Board of Directors concludes by expressing a vote of thanks to the Personnel of the Altri Group for their dedication and effort, and also wishes to express its' thanks to the other Corporate Boards and to the Financial Institutions that co-operated with the Group.

Porto, 26th August 2009

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

Statement Under the terms of Article 246, paragraph 1, c) of the Securities Code

The signatories individually declare that, to their knowledge, the Management Report, the Individual Financial Statements prepared in accordance with generally accepted accounting principles in Portugal and the Consolidated Financial Statements prepared meeting the standards of the applicable International Financial Accounting as adopted by the European Union, and 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") at 30 June 2009 and that the semi-annual Management Report faithfully describes the business evolution and position of Altri and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties for the following six months.

Porto, 26 August 2009

Paulo Jorge dos Santos Fernandes President of the Board of Directors

João Manuel Matos Borges de Oliveira Member of the Board of Directors

Pedro Macedo Pinto de Mendonça Member of the Board of Directors

Domingos José Vieira de Matos Member of the Board of Directors

Laurentina da Silva Martins Member of the Board of Directors

CONSOLIDATED BALANCE SHEETS AS OF 30 JUNE 2009 AND 31 DECEMBER 2008

(Translation of financial statements originally issued in Portuguese – Note 19) (Amounts expressed in Euro)

ASSETS	Notes	30.06.2009	31.12.2008
NON CURRENT ASSETS:
Biological assets		77.740.951	75.879.431
Tangible assets		517.851.633	473.140.189
Goodwill		269.366.752	269.323.108
Intangible assets		497.277	538.237
Investments in associated companies	4.2	22.002.024	17.909.611
Investments available for sale	4.3	769.340	780.330
Other non current assets		615.375	397.414
Deferred tax assets	6	13.598.302	10.983.234
Total non current assets		902.441.654	848.951.554
CURRENT ASSETS:
Inventories		45.453.068	57.613.288
Customers		66.304.769	57.819.150
Other debtors		7.249.757	14.749.641
State and other public entities		19.276.640	24.418.762
Other current assets		9.497.664	10.127.859
Derivatives	11	4.177.623	12.546.735
Investments recorded at fair value through profit and loss	4.4	814.293	747.450
Cash and cash equivalents		102.791.540	74.300.279
Assets classified as held for sale or in discontinuation	4.5	4.555.928	13.576.029
Total current assets		260.121.282	265.899.193
Total assets		1.162.562.936	1.114.850.747
SHAREHOLDERS' FUNDS AND LIABILITIES		30.06.2009	31.12.2008
SHAREHOLDERS' FUNDS:
Share capital	7	25.641.459	25.641.459
Legal reserve		2.862.981	1.630.523
Other reserves		50.290.082	54.156.623
Consolidated net profit		(12.073.399)	4.668.149
Total shareholders' funds attributable to the parent company's shareholders		66.721.123	86.096.754
Minority interests	8	111.020	283.991
Total Shareholders' funds		66.832.143	86.380.745
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	9 9	149.987.088	150.015.292
Other loans Other non current creditors		605.897.724 397.345	521.270.017 491.190
Other non current liabilities		1.470.713	1.513.306
Deferred tax liabilities	6	1.680.237	3.914.691
Provisions	10	2.913.201	5.107.335
Total non current liabilities		762.346.308	682.311.831
CURRENT LIABILITIES:
Bank loans	9	80.328.700	51.886.464
Other loans - short term	9	109.490.820	110.996.123
Suppliers		55.278.064	58.901.992
Other current creditors		44.784.745	70.905.701
State and other public entities		3.123.459	3.062.921
Other current liabilities		30.954.098	38.487.310
Derivatives	11	9.004.854	6.059.446
Liabilities associated with assets classified as held for sale or in discontinuation	4.5	419.745	5.858.214
Total current liabilities		333.384.485	346.158.171
Total shareholders' funds and liabilities		1.162.562.936	1.114.850.747

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

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS BY NATURE FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2009 AND 30 JUNE 2008

(Translation of financial statements originally issued in Portuguese - Note 19)

(Amounts expressed in Euro)

		SEMESTER ENDED		QUARTER ENDED
	Notes	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Continuing operations
Operating income
Sales		114.458.449	138.724.632	61.191.980	69.297.629
Services rendered		1.648.437	785.795	449.745	393.026
Other operating income	14	25.389.938	13.885.538	17.102.425	7.602.104
Total operating income		141.496.824	153.395.965	78.744.150	77.292.759
Operating expenses
Cost of sales		57.528.849	50.063.266	34.839.071	24.585.007
External supplies and services		51.622.850	43.442.843	29.419.093	22.246.154
Payroll expenses		16.414.002	16.129.653	8.999.473	8.445.149
Amortisation and depreciation		15.479.272	14.470.251	5.898.681	7.977.223
Provisions and impairment losses	10	1.050.000	656.616	1.050.000	655.043
Other operating expenses		1.094.561	3.855.686	247.826	2.117.154
Total operating expenses		143.189.534	128.618.315	80.454.144	66.025.730
Operating profit		(1.692.710)	24.777.650	(1.709.994)	11.267.029
Profits related with assets classified as held for sale		-	(251.693)	-	(14.359)
Gains and losses in associated companies	12	(627.588)	(393.224)	77.286	(197.033)
Gains and losses in other investments	12	45.884	(148.409)	57.539	(31.047)
Financial expenses	12	(15.957.420)	(21.901.217)	(7.028.202)	(11.380.058)
Financial income	12	2.725.140	4.778.371	11.396	3.035.677
Profit before income tax		(15.506.694)	6.861.478	(8.591.975)	2.680.209
Income tax		2.324.487	(1.396.003)	760.148	(650.452)
Profit after income tax		(13.182.207)	5.465.475	(7.831.827)	2.029.757
Attributable to:
Parent company's shareholders		(13.150.167)	5.371.844	(7.828.964)	1.939.146
Minority interests	8	(32.040)	93.631	(2.863)	90.611
Discontinued operations
Profit for the period from discontinued operations	4.5	1.076.768	3.508.931	1.616.777	1.391.042
Attributable to:
Parent company's shareholders		1.076.768	3.508.931	1.616.777	1.391.042
Minority interests		-	-	-	-
Consolidated net profit		(12.105.439)	8.974.406	(6.215.050)	3.420.799
Attributable to:
Parent company's shareholders		(12.073.399)	8.880.775	(6.212.187)	3.330.188
Minority interests	8	(32.040)	93.631	(2.863)	90.611
		(12.105.439)	8.974.406	(6.215.050)	3.420.799
Earnings per share
Continuing operations
Basic	13	(0,13)	0,05	(0,08)	0,02
Diluted	13	(0,13)	0,05	(0,08)	0,02
Continuing and discontinued operations
Basic	13	(0,12)	0,09	(0,06)	0,03
Diluted	13	(0,12)	0,09	(0,06)	0,03

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

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2009 AND 30 JUNE 2008

(Translation of financial statements originally issued in Portuguese - Note 19) (Amounts expressed in Euro)

		SEMESTER ENDED		QUARTER ENDED
	Notes	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Consolidated net profit		(12.105.439)	8.974.406	(6.215.050)	3.420.799
Conversion reserves		-	(195.568)	-	(380.527)
Hedging reserves	11	(7.288.394)	3.546.238	(376.535)	6.734.483
Other comprehensive income		(7.288.394)	3.350.670	(376.535)	6.353.956
Total comprehensive income for the period		(19.393.833)	12.325.076	(6.591.585)	9.774.755
Attributable to: Parent company's shareholders Minority interests	8	(19.361.793) (32.040)	12.231.445 93.631	(6.588.722) (2.863)	9.684.144 90.611

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 2009 AND 30 JUNE 2008

(Translation of financial statements originally issued in Portuguese – Note 19) (Amounts expressed in Euro)

		Attributable to the parent company's shareholders
		Share capital	Legal reserve		Other reserves		Net profit	Total	Minority interests	Total shareholders' funds
	Notes			Hedging reserves	Conversion reserves	Other
Balance as of 1 January 2008		25.641.459	1.527.560	(931.402)	(373.328)	56.943.872	35.193.702	118.001.863	274.494	118.276.357
Appropriation of the consolidated net profit of 2007:
Transfer to legal reserves and retained earnings		-	102.963	-	-	29.962.448	(30.065.411)	-	-	-
Distributed dividends Demerger of F. Ramada - Aços e Indústrias, S.A.		- -	- -	- -	- 568.896	- (40.043.529)	(5.128.291) -	(5.128.291) (39.474.633)	- -	(5.128.291) (39.474.633)
Change in reserves:
Conversion reserves		-	-	-	(195.568)	-	-	(195.568)	-	(195.568)
Hedging reserves		-	-	3.546.238	-	-	-	3.546.238	-	3.546.238
Others Acquisition of share capital of Sosapel - Soc. Comercial de Sacos de Papel, Lda.		- -	- -	- -	- -	(2.361) -	- -	(2.361) -	- (28.877)	(2.361) (28.877)
Net consolidated profit for the period ended 30 June 2008		-	-	-	-	-	8.880.775	8.880.775	93.631	8.974.406
Balance as of 30 June 2008		25.641.459	1.630.523	2.614.836	-	46.860.430	8.880.775	85.628.023	339.248	85.967.271
Balance as of 1 January 2009	7	25.641.459	1.630.523	7.294.181	-	46.862.442	4.668.149	86.096.754	283.991	86.380.745
Appropriation of the consolidated net profit of 2008:
Transfer to legal reserves and retained earnings	17	-	1.232.458	-	-	3.435.691	(4.668.149)	-	-	-
Change in reserves:
Hedging reserves	11	-	-	(7.288.394)	-	-	-	(7.288.394)	-	(7.288.394)
Others		-	-	-	-	(13.838)	-	(13.838)	-	(13.838)
Acquisition of additional share capital of Celtejo - Empresa de Celulose do Tejo, S.A.		-	-	-	-	-	-	-	(140.931)	(140.931)
Net consolidated profit for the period
ended 30 June 2009		-	-	-	-	-	(12.073.399)	(12.073.399)	(32.040)	(12.105.439)
Balance as of 30 June 2009		25.641.459	2.862.981	5.787	-	50.284.295	(12.073.399)	66.721.123	111.020	66.832.143

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

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2009 AND 30 JUNE 2008

(Translation of financial statements originally issued in Portuguese - Note 19)

(Amounts expressed in Euro)

Notes 30.06.2009 30.06.2008 30.06.2009 30.06.2008 Operating activities: Cash flow from operating activities (1) 23.866.640 40.206.989 13.984.024 25.968.967 Investment activities: Collections relating to: Investments - 21.657.703 - 21.657.703 Tangible assets 1.290.428 1.735.333 341.416 930.463 Interest and similar income 3.572.793 3.791.234 918.862 1.273.681 Investment subsidies 1.839.688 43.691 714.688 43.691 Payments relating to: Investments 1 (4.961.819) (4.538.000) (2.581.819) 1.368.500 Intangible assets (47.671) (56.437) (45.595) (50.222) Tangible assets (77.323.927) (90.809.721) (29.074.185) (35.855.707) Biological assets (7.043.590) (4.457.285) (4.128.699) (2.092.170) Cash flow from investment activities (2) (82.674.098) (72.633.482) (33.855.332) (12.724.061) Financing activities: Collections relating to: Loans obtained 133.353.618 179.138.485 2.588.026 73.153.957 Loans granted - 21.640.843 - 21.640.843 Payments relating to: Lease contracts (30.666) (159.476) (13.206) (55.198) Interest and similar costs (23.399.594) (24.867.932) (4.422.100) (6.397.107) Dividends - (5.128.291) - (5.128.291) Loans obtained (24.988.628) (96.967.405) (16.077.186) (62.968.948) Cash flow from financing activities (3) 84.934.730 73.656.224 (17.924.466) 20.245.256 Cash and cash equivalents at the beginning of the period 73.023.397 125.514.513 136.946.443 133.254.082 Effect of change in consolidation perimeter - (39.668.476) - (39.668.476) Variation of cash and cash equivalents: (1)+(2)+(3) 26.127.272 41.229.731 (37.795.774) 33.490.162 Cash and cash equivalents at the end of the period 2 99.150.669 127.075.768 99.150.669 127.075.768		SEMESTER ENDED	QUARTER ENDED

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

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

NOTES TO THE CONSOLIDATED STATEMENT OF CASH-FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2009

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

1. PAYMENTS/COLLECTIONS RELATING TO INVESTMENTS

During the period ended 30 June 2009 the payments relating to investments were as follows:

	Transaction amount	Amount paid/collected
Acquisitions
EDP – Produção Bioeléctrica, S.A. (a)	4,720,000	4,720,000
Socasca – Recolha e Comércio de Recicláveis, S.A. (b)	5,118,924	150,000
Celtejo – Empresa de Celulose do Tejo, S.A. (c)	91,819	91,819
	--------------	--------------
	9,930,743	4,961,819
	========	========

(a) – Increase of loans granted;

(b) – It was paid until 31 December 2008 the amount of 4,808,924 Euro;

(c) – Acquisition of an additional part representing 0.229% of the share capital.

2. BREAKDOWN OF CASH AND ITS EQUIVALENTS

Cash and its equivalents presented in the condensed consolidated statement of cash flows for the period and the reconciliation between that amount and the amounts shown in the balance sheet, are as follows:

	30.06.2009	30.06.2008
Cash	30,962	31,727
Bank deposits repayable on demand	102,760,578	129,213,762
	102,791,540	129,245,489
Bank overdrafts	(3,640,871)	(2,169,721)
Cash and its equivalents	99,150,669	127,075,768

(Translation of notes originally issued in Portuguese – Note 19) (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 Lisbon Euronext Stock Exchange. Its main activity is the management of investments.

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

In the year ended at 31 December 2008, it was materialized a business reorganization, which involved the demerger process of the equity share held at F. Ramada - Aços e Indústrias, S.A., representative of the voting rights of the mentioned company. The restructuring involved a simple demerger operation predicted on item 1.a), article 118, of the Commercial Companies Code ("Código das Sociedades Comerciais"), for the constitution of a new company – F. Ramada – Investimentos, SGPS, S.A. ("Ramada Investimentos"). Due to this process, the company's patrimonial share related to the equity holdings management business unit for the sector of steel and storage systems was demerged to Ramada Investimentos, including all other resources (such as human resources, assets and liabilities) related to those companies activities.

Demerger public deed was signed at 16 April 2008 and the relevant date for the production of effects of this operation was 1 June 2008.

Altri is the parent company of a group of companies listed in Note 4 known as Altri Group, and its main activity is the management of investments mainly in the industrial sector. The Group focus its operations in the production of pulp and paper through the Celbi, Celtejo and Caima Groups.

With the demerging operation of F. Ramada 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) for which the segmental information mentioned in Note 15 is limited by this.

The financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

It was adopted for the first time the IAS 1 – Presentation of financial statements reviewed version (effective in periods beginning on or after 1 January 2009). This adoption led to a change of some disclosures without impact in Altri financial position and profit.

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

The financial statements as of 30 June 2009 were prepared using accounting policies consistent with the International Financial Reporting Standards and in accordance with the International Accounting Standard 34 – Interim Financial Reporting and includes balance sheet, statements of profit and loss by nature, statement of comprehensive income, statement of changes in shareholders' funds and statement of cash flows as well as 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 2008, except for the IAS 1 reviewed version first time application above mentioned.

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

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 periods.

4. INVESTMENTS

4.1 INVESTMENTS IN GROUP COMPANIES

The companies included in the consolidated financial statements by the full consolidation method, their headquarters, percentage participation held and activity developed as of 30 June 2009 and 31 December 2008 are as follows:

Company	Head Office		Percentage Held	Activity
		2009	2008
Parent-Company: Altri, SGPS, S.A.	Oporto			Investment management
Caima / Celtejo / Celbi Group
Celulose do Caima, SGPS, S.A.	Lisbon	100%	100%	Investment management
Caima Indústria de Celulose, S.A.	Lisbon	100%	100%	Production and commercialisation of pulp
Silvicaima – Sociedade Silvícola do Caima, S.A.	Lisbon	100%	100%	Sylvan exploration
Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Lisbon	100%	100%	Production of energy
Invescaima – Investimentos e Participações, SGPS, S.A.	Lisbon	100%	100%	Investment management
Inflora – Sociedade de Investimentos Florestais, S.A.	Lisbon	100%	100%	Sylvan exploration
Sócasca – Recolha e Comércio de Recicláveis, S.A.	Águeda	100%	100%	Commercialisation of recycled products
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão	99.82%	99.59%	Production and commercialisation of pulp
CPK – Companhia Produtora de Papel Kraftsack, S.A. (b)	Vila Velha de Ródão	99.82%	99.59%	Production and commercialisation of paper
Altri - Energias Renováveis, SGPS, S.A.	Lisbon	99.82%	99.59%	Investment management
Sosapel – Sociedade Comercial de Sacos de Papel, Lda.	Vila Velha de Ródão	99.82%	99.59%	Commercialisation of pulp
Celbi – Celulose da Beira Industrial, S.A.	Figueira da Foz	100%	100%	Production and commercialisation of pulp
Celbinave – Tráfego e Estiva SGPS, Unipessoal, Lda.	Figueira da Foz	100%	100%	Freightage of ships
Viveiros do Furadouro Unipessoal, Lda.	Óbidos	100%	100%	Production of plants in nurseries and services related with forests and landscapes
Altri, Participaciones Y Trading, S.L.	Madrid, Spain	100%	100%	Investment management
Altri Sales, S.A.	Nyon, Switzerland	100%	100%	Commercialisation of pulp
Pedro Frutícola, Sociedade Frutícola, Lda.	Constância	100%	100%	Agriculture production
Captaraíz Unipessoal, Lda.	Lisbon	100%	100%	Property bying and selling
Ramada Group
F. Ramada – Aços e Indústrias, S.A.	Ovar	-	(a)	Steel commercialisation
F. Ramada – Produção e Comercialização de Estruturas Metálicas de Armazenagem, S.A.	Ovar	-	(a)	Production and commercialisation of storage systems
F. Ramada II, Imobiliária, S.A.	Ovar	-	(a)	Real Estate
F. Ramada, Serviços de Gestão, Lda.	Ovar	-	(a)	Administration and management services
Universal Afir - Aços, Máquinas e Ferramentas, S.A.	Oporto	-	(a)	Steel commercialisation
BPS – Equipements, S.A.	Paris, France	-	(a)	Commercialisation of storage systems
Storax Racking Systems, Ltd.	Bromsgrove, United Kingdom	-	(a)	Commercialisation of storage systems
Storax Benelux, S.A.	Belgium	-	(a)	Commercialisation of storage systems

(a) – company demerged in 2008 (Note 5);

(b) – company whose assets and liabilities were classified in 2008 as "in discontinuation" (Note 4.5).

The above companies were included in the consolidated financial statements in accordance with the full consolidation method.

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

4.2 INVESTMENTS IN ASSOCIATED COMPANIES

The associated companies, included in the consolidated financial statements in accordance with the equity method, the percentage participation held and the activity developed as of 30 June 2009 and 31 December 2008, can be detailed as follows:

Company		Percentage held	Activity
	2009	2008
EDP – Produção Bioeléctrica, S.A.	50%	50%	Energy production and trading
Operfoz – Operadores do Porto da Figueira da Foz, Lda.	33.33%	33.33%	Harbor operations
Ródão Power - Energia e Biomassa do Ródão, S.A. (a)	50%	50%	Energy production and trading

(a) – company sold to the associated company EDP – Produção Bioeléctrica, S.A. during 2008

The book value, share capital and net profit for the year ended on 30 June 2009 for these associated companies were as follows:

Company	Book value (a)	Asset	Equity	Net profit
EDP – Produção Bioeléctrica, S.A.	21,729,675	150,557,455	4,017,051	(973,232)
Operfoz – Operadores do Porto da Figueira da Foz, Lda.	272,349	3,730,198	817,039	81,756
Ródão Power - Energia e Biomassa do Ródão, S.A.	-	22,531,344	(296,808)	(336,449)
	22,002,024

(a) – including loans granted.

4.3 INVESTIMENTS AVAILABLE FOR SALE

The caption "Investments available for sale" as of 30 June 2009 and 31 December 2008 can be detailed as follows:

		Book value
	2009	2008
Buildings	726,532	737,522
Others	42,808	42,808
	769,340	780,330

4.4 INVESTMENTS RECORDED AT FAIR VALUE TROUGH PROFIT AND LOSSES

The amount included in the caption "Investments recorded at fair value through profit and loss" as of 30 June 2009 refers to shares of companies listed in stock exchange markets and are recorded in accordance with its market value as of that date (Note 12).

4.5 ASSETS CLASSIFIED AS HELD FOR SALE OR IN DISCONTINUATION

In the end of December 2008 the industrial paper unit of CPK - Companhia Produtora de Papel Kraftsack, S.A, was closed so its assets and liabilities were classified as in discontinuation (net from intragroup operations).

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

The detail of assets and liabilities from CPK in discontinuation as of 30 June 2009 and 31 December 2008 are as follow:

	30.06.2009	31.12.2008
Tangible assets	-	2,516,063
Intangible assets	-	3,194
Inventories	639,218	5,827,543
Customers	1,874,721	4,419,345
Other debtors	463,492	806,842
Other current assets	1,578,497	1,542
Cash and cahs equivalents	-	1,500
Assets classified as in discontinuation	4,555,928	13,576,029
Provisions	(49,500)	(3,400,000)
Suppliers	(178,824)	(1,728,199)
Other payables	(178,850)	(101,799)
Other current liabilities	(12,571)	(628,216)
Liabilities associated with assets classified as in discontinuation	(419,745)	(5,858,214)
Assets net from liabilities in discontinuation	4,136,183	7,717,815

During the period ended 30 June 2009 the net loss of CPK – Companhia Produtora de Papel Kraftsack, S.A. (net from intragroup operations) amounted to 1,076,768 Euro ((752,764) Euro in 31 December 2008), which is presented in the Income Statement caption "Profit for the period from discontinued operations".

5. CHANGES IN THE GROUP COMPANIES

At 16 April 2008 was signed the F. Ramada – Aços e Indústrias, S.A. demerger public deed. Under the terms of the project, the planned reorganization implies the split of Altri's two business units that manage equity holdings in the pulp and paper sector and in the steel and storage systems sector.

The demerger process originated the constitution of a new company, F. Ramada – Investimentos, SGPS, S.A. ("Ramada Investimentos") and the relevant date for the production of effects of this operation was 1 June 2008, the date when F. Ramada – Aços e Indústrias, S.A. ("F. Ramada - Aços") and its subsidiaries were no longer included in the consolidated financial statements of Altri, SGPS, S.A. As a consequence of the demerger process, F. Ramada – Aços and its subsidiaries contributes during five months to the consolidated income statement of Altri, SGPS, S.A., have been classified as Discontinued Operations, according to IFRS 5 – Non Current Assets Held For Sale and Discontinued Operations.

The impacts of the Ramada – Aços and its subsidiaries' net assets demerger process on the consolidated balance sheet on the 1st of June 2008 (Demerger date) were as follows:

	Demerger date
Tangible and intangible assets	84,899,532
Goodwill	2,199,238
Deferred tax assets	2,681,528
Inventories (b)	42,408,422
Derivatives	626,696
Cash and cash equivalents	39,668,476
Other assets (a)	94,587,310
Loans	(110,070,311)
Provisions	(137,084)
Deferred tax liabilities	(401,714)
Other liabilities	(116,987,460)
Total demerged	39,474,633

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

(a) – The amount of the caption "Other assets" is net of impairment losses in investments of 85,886 Euro and impairment losses in other current assets of 17,071,176 Euro.

(b) – The net amount of the caption "Inventories" corresponds to a gross amount of 42,781,708 Euro and to impairment losses in inventories of 373,286 Euro.

The impacts of the demerger process on the consolidated income statement were as follows:

	Demerger date
Sales and services rendered	49,278,067
Other operating income	521,685
Cost of sales	(26,972,174)
Other operating expenses	(19,489,828)
Financial loss	(1,556,007)
Income before tax	1,781,743
Income tax	(470,208)
Net profit	1,311,535

Additionally, during the period ended in 30 June 2009 the Group acquired an additional percentage of 0.229% of Celtejo Group share capital for 91,819 Euro which was fully payed.

6. CURRENT AND DEFERRED INCOME 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), except when there has been tax losses, there have been granted tax benefits, or tax inspections or claims are in progress, in which cases the periods may be extended or suspended. Therefore, the tax returns of Altri and its subsidiary and associated companies for the years 2005 to 30 June 2009 are still subject to review.

The Board of Directors of Altri believes that any potential corrections resulting from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the consolidated financial statements as of 30 June 2009.

The movement occurred in deferred tax assets and liabilities in the period ended in 30 June 2009 were as follows:

		2009
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1 January 2009	10,983,234	3,914,691
Effect on the profit and loss statement:
Tax losses carried forward	4,045,954	-
Other effects	(1,840,859)	(16,639)
Effect on shareholders' funds:
Fair values of derivatives (Note 11)	409,973	(2,217,815)
Closing balance as of 30 June 2009	13,598,302	1,680,237

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2009

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

	2008
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1 January 2008	11,925,730	1,884,051
Effect on the profit and loss statement:
Harmonization of depreciation rates	670,696	-
Other effects	316,172	(12,076)
Effect on shareholders' funds:
Fair values of derivatives (Note 11)	(249,898)	1,028,678
Demerger (Note 5)	(2,681,528)	(401,714)
Closing balance as of 30 June 2008	9,981,172	2,498,939

7. SHARE CAPITAL

As of 30 June 2009 the Company's fully subscribed and paid up capital consisted of 102,565,836 shares with a nominal value of 25 cents of Euro each.

As of 30 June 2009 there were no entities holding more than 20% of the subscribed share capital.

8. MINORITY INTERESTS

The movements occurred under this caption during the periods ended 30 June 2009 and 2008 were as follows:

	30.06.2009	30.06.2008
Opening balance	283,991	274,494
Acquisition of 20% of Sosapel - Sociedade Comercial de Sacos de Papel, Lda.	-	(28,877)
Acquisition of 0.23% of Celtejo - Empresa de Celulose do Tejo, S.A. (Note 5)	(140,931)	-
Net profit attributable to minority interests	(32,040)	93,631
Closing balance	111,020	339,248

(Amounts expressed in Euro)

9. BANK LOANS AND OTHER LOANS

As of 30 June 2009 and 31 December 2008 the captions "Bank loans" and "Other loans" can be detailed as follows: 30.06.2009

		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	76,909,898	150,673,904	227,583,802	76,687,829	149,987,088	226,674,917
Bank overdrafts	3,640,871	-	3,640,871	3,640,871	-	3,640,871
Bank loans	80,550,769	150,673,904	231,224,673	80,328,700	149,987,088	230,315,788
Commercial paper	85,000,000	180,000,000	265,000,000	84,984,800	179,610,390	264,595,190
Bonds	21,500,000	375,000,000	396,500,000	21,287,240	368,343,553	389,630,793
Other loans	3,218,780	57,943,781	61,162,561	3,218,780	57,943,781	61,162,561
Other loans	109,718,780	612,943,781	722,662,561	109,490,820	605,897,724	715,388,544
	190,269,549	763,617,685	953,887,234	189,819,520	755,884,812	945,704,332

	31.12.2008
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	50,887,167	150,785,809	201,672,976	50,609,582	150,015,292	200,624,874
Bank overdrafts	1,276,882	-	1,276,882	1,276,882	-	1,276,882
Bank loans	52,164,049	150,785,809	202,949,858	51,886,464	150,015,292	201,901,756
Commercial paper	85,000,000	115,000,000	200,000,000	84,974,531	114,578,800	199,553,331
Bonds	21,500,000	375,000,000	396,500,000	21,236,178	367,814,561	389,050,739
Other loans	4,785,414	38,876,656	43,662,070	4,785,414	38,876,656	43,662,070
Other loans	111,285,414	528,876,656	640,162,070	110,996,123	521,270,017	632,266,140
	163,449,463	679,662,465	843,111,928	162,882,587	671,285,309	834,167,896

In the first semester of 2009 Celbi – Celulose da Beira Industrial, S.A. issued an additional commercial paper program, not yet used, amounting to 65,000,000 Euro.

As of 30 June 2009, there are bank overdrafts in use amounting, approximately, 61.000.000 Euro (approximately 32.900.000 Euro as of 31 December 2008), classified in the caption "Bank Loans".

Additionally, in the first semester of 2009 the Company received additional amounts of repayable benefits related with Celbi's productive capacity expansion and Celtejo's pulp bleaching project, in the total amount of, approximately, 19.000.000 Euro, which is recorded under the caption "Other loans".

The expenses incurred with the issuance of loans are deducted to its nominal value and deferred and recognized as interest expenses during the period of the loan (Note 12).

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

10. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses during the period ended 30 June 2009 can be detailed as follows:

		30.06.2009
		Impairment losses in
	Provisions	current assets	Total
Opening balance	5,107,335	9,444,693	14,552,028
Increases	1,000,000	50,000	1,050,000
Decreases and utilizations	(3,194,134)	(2,491,396)	(5,685,530)
Closing balance	2,913,201	7,003,297	9,916,498
		30.06.2008
		Impairment losses in	Impairment losses in
	Provisions	current assets (a)	investments	Total
Opening balance (a)	4,817,457	24,764,407	110,882	29,692,746
Increase in demerged activities until demerge date	72,547	618,833	-	691,380
Changes in the group - demerger (Note 5)	(137,084)	(17,444,462)	(85,886)	(17,667,432)
Changes in the group (Note 4.5)	(412,916)	(425,000)	-	(837,916)
Increases	655,324	1,292	-	656,616
Decreases and utilizations	(519,428)	(342,749)	(24,996)	(887,173)
Closing balance	4,475,900	7,172,321	-	11,648,221

(a) - Including 1,104,512 Euro relating to impairment losses on acounts receivable recorded as non current assets.

11. DERIVATIVES FINANCIAL INSTRUMENTS

As of 30 June 2009 Altri Group companies held derivative financial instruments to cover the variations in pulp paper prices, in interest and exchange rates, which were recorded at fair value.

Altri Group companies only use derivatives to hedge future cash flows that results from its activity.

The detail of the financial instruments fair value as of 30 June 2009 and 31 December 2008 is as follows:

	Pulp price hedging derivatives	Interest rates derivatives	Exchange rates derivatives	Total
Opening balance as of 31 December 2008	12,546,735	(6,059,446)	-	6,487,289
Fair value variation/cessation	(10,294,498)	(2,945,408)	1,925,386	(11,314,520)
Closing balance as of 30 June 2009	2,252,237	(9,004,854)	1,925,386	(4,827,231)

	Pulp price hedging derivatives	Interest rates derivatives	Total
Opening balance as of 31 December 2007	(4,183,446)	3,748,671	(434,775)
Demerger (Note 5)	-	(626,696)	(626,696)
Fair value variation	600,206	4,031,959	4,632,165
Closing balance as of 30 June 2008	(3,583,240)	7,153,934	3,570,694

12. NET FINANCIAL PROFIT

Net financial profit for the periods ended 30 June 2009 and 2008 can be detailed as follows:

	30.06.2009	30.06.2008
Gains and losses in associated companies
Gains in associated companies	27,253	77,777
Losses in associated companies	(654,841)	(471,001)
	(627,588)	(393,224)
Gains and losses in other investments
Losses obtained with treasury applications (Note 4.4)	-	(148,409)
Gains obtained with treasury applications (Note 4.4)	45,884	-
	45,884	(148,409)
Financial expenses
Interests	12,689,549	20,187,882
Other financial expenses	3,267,871	1,713,335
	15,957,420	21,901,217
Financial income
Interests	1,947,271	3,604,296
Exchange gains	671,379	153,389
Other financial income	106,490	1,020,686
	2,725,140	4,778,371

The caption "Other financial expenses" includes, mainly, expenses with the loans settlement, which are recognized in the Statement of Profit and Losses trough the period of life of those loans (Note 9).

The caption "Gains and losses in associated companies" correspond, mainly, to the appropriation of the Group quote of the results in the investments in associated companies.

13. EARNINGS PER SHARE

Earnings per share for the periods ended 30 June 2009 and 2008 were computed as follows:

	30.06.2009	30.06.2008
Share number considered for the computation of basic and diluted earning	102,565,836	102,565,836
Net profit considered for the computation of basic and diluted earning for continuing operations	(13,150,167)	5,371,844
Continuing operations earnings per share Basic Diluted	(0.13) (0.13)	0.05 0.05
Net profit considered for the computation of basic and diluted earning for continuing and non-continuing activities	(12,073,399)	8,880,775
Continuing and non-continuing operations earnings per share Basic Diluted	(0.12) (0.12)	0.09 0.09

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

14. OTHER OPERATING INCOME

As of 30 June 2009 this caption includes, mainly, gains obtained in fixed assets disposal and gains in derivative contracts.

15. SEGMENTAL REPORTING

On 16 April 2008 was signed the F. Ramada – Aços e Indústrias, S.A. demerger public deed. Under the terms of the project, the planned reorganization implies the split of Altri's two business units that manage equity holdings in the pulp and paper sector and in the steel and storage systems sector. This reorganization aimed a bigger focus and transparency on ALTRI's business, and giving each of the areas an opportunity to be better seen and better evaluated by the market.

Furthermore, in the end of 2008 ALTRI decided to shut down its Kraft paper industry unit. This decision was based on the declining Kraft paper business perspectives and on the poor contribute that this unit was giving to Group Altri's EBITDA (a tendency that showed no possibility of reversion).

Therefore, the contributes of this the units mentioned above, on the income statement, was recorded as "Operational units in discontinuation" (Notes 4.5 and 5).

This decision 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.

16. RELATED PARTIES

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

In the consolidation procedures the transactions between the companies included in consolidation by the full consolidation method are eliminated, once the consolidated financial statements present the owner and its subsidiaries information as one single company.

There were no loans or transactions with Altri Directors during the periods ended 30 June 2009 and 31 December 2008.

(Translation of notes originally issued in Portuguese – Note 19)

(Amounts expressed in Euro)

As of 30 June 2009 and 2008 the balances and transactions with related parties are as follow:

	Sales and services rendered		Purchases and services obtained		Interest income		Interest expense
Transactions	30.06.2009	30.06.2008	30.06.2009	30.06.2008	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Parent company	-	-	-	-	-	-	228,809	87,240
Group companies (a)	25,813,284	42,178,451	24,771,317	16,472,716	4,464,388	5,492,918	3,509,082	4,470,240
Associated companies (b)	295,909	323,048	3,841,973	4,535,888	-	-	550,004	929,695
Other related parties (c)	2,665,822	1,315,132	161,725	22,808,027	-	-	176,493	5,743
	28,775,015	43,816,631	28,775,015	43,816,631	4,464,388	5,492,918	4,464,388	5,492,918
		Fixed assets acquisitions		Fixed assets disposals

Fixed Assets Transactions	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Parent company	-	-	-	-
Group companies (a)	-	-	-	31,721,210
Associated companies (b)	-	-	-	-
Other related parties (c)	-	31,721,210	-	-
	-	31,721,210	-	31,721,210

					Loans
		Accounts receivable		Accounts payable		Obtained		Granted
Balances	30.06.2009	30.06.2008	30.06.2009	30.06.2008	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Parent company	-	191,878	789,656	742,786	8,000,000	10,000,000	-	-
Group companies (a)	79,410,121	108,276,344	76,558,710	103,606,747	130,371,706	123,229,853	164,960,826	149,751,050
Associated companies (b)	62,459	21,974	2,213,175	2,585,287	22,842,905	15,007,905	-	-
Other related parties (c)	4,432,225	5,242,001	4,343,264	6,797,377	3,832,786	11,114,525	86,571	9,601,233
	83,904,805	113,732,197	83,904,805	113,732,197	165,047,397	159,352,283	165,047,397	159,352,283

(a) All entities consolidated by the full consolidation method as of 30 June 2009 and 2008 (Note 4.1) except from CPK – Papel Kraft, S.A. (Note 4.5);

(b) All entities consolidated by the equity method as of 30 June 2009 and 2008 (Note 4.2);

(c) Were considered as related parties CPK – Papel Kraft, S.A. (Note 4.5) and Group Ramada companies (Note 5) as of 30 June 2009 and 2008.

There are no other transactions with related parties besides the above mentioned.

Besides the companies included in consolidation (Note 4), entities considered as related parties as of 30 June 2009 can be detailed as follow:

Cofihold, S.G.P.S., S.A. F. Ramada – Investimentos, SGPS, S.A. (Note 5) Cofina, SGPS, S.A. Cofina B.V. Efe Erre Participações, S.G.P.S., S.A. Cofina Media, SGPS, S.A. Presselivre – Imprensa Livre, S.A. Edisport – Sociedade de Publicações, S.A. Edirevistas – Sociedade Editorial, S.A. Medianfin, SGPS, S.A. Metronews – Publicações S.A. Grafedisport – Impressão e Artes Gráficas, S.A. VASP – Sociedade de Transportes e Distribuições, S.A. Destak Brasil – Editora de Publicações, S.A. Destak Brasil – Empreendimentos e Participações, S.A. Mercados Globais – Publicação de Conteúdos, Lda. Transjornal – Edição de Publicações, S.A. Web Works – Desenvolvimento de Aplicações para Internet, S.A.

17. NET PROFIT APPROPRIATION

In General Meeting held on 27 May 2009 was deliberated that the 2008 net profit was applied as follow:

Legal reserve	1,232,458
Other reserves	23,416,706
	24,649,164

18. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 25 August 2009.

19. 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

BALANCE SHEETS AS OF 30 JUNE 2009 AND 31 DECEMBER 2008

		2008
	Gross	2009 Amortizations and	Net	Net
Assets	Assets	impairment losses	assets	assets
Fixed Assets:
Intangible Assets:
Research and development expenditure	54.950	35.231	19.719	28.168
Industrial property and other rights	1.320	1.242	78	157
	56.270	36.473	19.797	28.325
Tangible assets:
Administrative equipment	5.534	3.277	2.257	2.364
Investments:
Investments in group companies	60.470.641	-	60.470.641	60.470.641
Other investments	58.000.000	-	58.000.000	58.000.000
	118.470.641	-	118.470.641	118.470.641
Current assets:
Due from third parties - short term:
State and other public entities	357.872	-	357.872	333.424
Group companies	-	-	-	172.806
Other debtors	4.766	-	4.766	1.199
	362.638	-	362.638	507.429
Banks and cash:
Bank deposits	48.006		48.006	977.362
Cash	488		488	1
	48.494		48.494	977.363
Accruals and deferrals:
Accrued income	-		-	88.611
Deferred costs	15.200		15.200	25.469
	15.200		15.200	114.080
Total amortization and depreciation		39.750
Total impairment losses		-
Total assets	118.958.777	39.750	118.919.027	120.100.202

(Amounts expressed in Euro)

BALANCE SHEETS AS OF 30 JUNE 2009 AND 31 DECEMBER 2008

(Amounts expressed in Euro)

Equity and liabilities	2009	2008
Equity:
Share capital	25.641.459	25.641.459
Reserves:
Legal reserve	2.862.981	1.630.523
Other reserves	37.975.930	14.559.224
Net profit/(loss) for the year	(1.044.954)	24.649.164
	65.435.416	66.480.370
Liabilities:
Due to third parties - short term:
Bank loans	4.450.000	1.385.000
Other loans	40.000.000	40.000.000
Suppliers	552	2.657
Group companies	8.789.656	11.962.461
State and other public entities	7.824	39.624
Other creditors	421	129.217
	53.248.453	53.518.959
Accruals and deferrals:
Accrued expenses	235.158	100.873
Total equity and liabilities	118.919.027	120.100.202

STATEMENTS OF PROFIT AND LOSS BY NATURE FOR THE SIX MONTHS PERIODS ENDED 30 JUNE 2009 AND 30 JUNE 2008

(Amounts expressed in Euro)

	Expenses	2009	2008
External supplies and services		110.625	291.709
Payroll expenses:
Remuneration		86.635	95.458
Social charges		17.730	16.889
Depreciation and amortization		9.010	10.029
Taxes		11.326	17.016
	(A)	235.326	431.101
Interests and similar expenses
Interests		715.772	1.071.648
Other		133.692	229.703
	(B)	1.084.790	1.732.452
Extraordinary expenses		2.128	-
Income tax for the year	(D)	1.086.918 -	1.732.452 -
	(F)	1.086.918	1.732.452
Net profit/(loss) for the year		(1.044.954)	(1.700.132)
		41.964	32.320
	Income	2009	2008
Interests and similar income		33.630	25.724
	(C)	33.630	25.724
Extraordinary income		8.334	6.596
	(E)	41.964	32.320
Operating results	- (A)	(235.326)	(431.101)
Financial results:	(C) - (B-A)	(815.834)	(1.275.627)
Current results:	(C) - (B)	(1.051.160)	(1.706.728)
Profit/(loss) before income tax:	(E) - (D)	(1.044.954)	(1.700.132)
Net profit for the year:	(E) - (F)	(1.044.954)	(1.700.132)