Altri SGPS — Management Reports 2013

Aug 5, 2013

DIRECTORS' REPORT

1 st Semester of 2013

INTRODUCTION	3
GROUP'S ACTIVITY 7
FINANCIAL REVIEW	10
SECOND SEMESTER 2013 OUTLOOK	13
CORPORATE GOVERNANCE	14
LEGAL MATTERS	15
DECLARATION OF RESPONSIBILITY 17
CLOSING REMARKS	17

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 2013.

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 465 million Euro, mainly on Celbi and Celtejo unities. Currently, Altri owns three pulp mills in Portugal with a total capacity of 910,000 tons/year of bleached eucalyptus pulp in 2012. The company has an ongoing series of small projects to optimize operating efficiency which will increase production capacity in the medium term.

Currently, Altri manages over 84,000 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 2013 is 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.)

Altri's share price closed the first six months of 2013 at 1.87 Euro per share, representing an appreciation of 18% over the end of 2012. The market capitalization at the end of that period was 383.6 million Euro.

During the first semester of 2013, Altri's shares were traded between a 2.038 Euro per share high and a 1.64 Euro per share low. In total, 44.98 million Altri shares were traded in that period, corresponding to 22% of the issued capital.

The main events that characterized the evolution of the Company's shares during the first semester of 2013 can be described chronologically as follows:

• 1º SEMESTRE 2013 On March 7, the Group announced the financial performance of the year 2012, with a consolidated net profit around 52 million Euro. The consolidated total revenues reached 543 million Euro, representing an increase of 11.6% compared to 2011. Consolidated EBITDA amounted to 143.1 million Euro, registering an increase of 26.5% compared to 2011. On that date shares' closing price reached 1.862 Euro per share;
• In a statement made on April 18, Altri informed the market about the deliberations of the General Meeting held on that date which approved, among others, the proposed distribution of dividends corresponding to 0.025 Euro per share;
• On April 23, the Company informed the market that the dividend relating to the 2012 financial year would be payable as from May 17, 2013;
• Through a statement made on May 8, the Group announced the results of the first quarter of 2013. During this period the consolidated total revenues reached about 145 million Euro, representing an increase of about 18% over the same period of 2012. The EBITDA reached about 36.3 million Euro, which correspond to an increase of about 27% over the first quarter of 2012.

GROUP'S ACTIVITY

1º SEMESTRE 2013 With its origin in the reorganization process of Cofina with the purpose of setting into a separate holding the industrial operations, Altri held until June 1, 2008 the investments in the paper, pulp, steel and storage systems, date considered for the demerger process the business of steel and storage systems. 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.

The main participations where Altri holds the majority of capital are indirectly hold, and are as follows:

• 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;
• 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 Group's mills Location of the centrals of energy production

Altri's complete structure of participation as of June 30, 2013 is as follows:

Pulp market

The first semester of 2013 was characterized by an increase of about 4.7% of total demand for hardwood pulp that amounted to about 14 million tons. It is noted that during the first quarter the demand had fallen 0.3%. Detailing, it turns out that demand grew across all geographies, with China increasing its demand for hardwood pulp on about 11%, while Western Europe had a residual growth of 0.5%. It is interesting to note the growth in North America's demand, which amounted to 6.4% (PPPC data).

In this semester, the level of deliveries against the installed capacity (shipment-to-capacity ratio) of hardwood pulp of eucalyptus reached 90%. Considering only the month of June 2013, this ratio amounted to 93% (PPPC data).

In terms of final markets, there has been a structural decrease on printing and writing, whose demand has contracted about 1.8% during the first semester of the year. On the other hand, the demand for tissue paper, during the same period, increased about 1.4%, with a special highlight on the North America, with a 2.8% increase (PPPC data).

During the first semester of 2013, the average BEKP pulp market price was about 807 USD / ton, which corresponds to an average price of approximately 611 Euro. At the end of June the market price was 820 USD/ ton (623 EUR / ton).

Market price evolution in BEKP pulp in Europe since 1990 until the end June 2013 (EUR)

Source: Hawkins Wright

In terms of sales, Altri reached a volume record, amounted to about 491,000 tons of pulp, 5% more than the pulp sales made in the same period of 2012. Additionally, in monetary terms, pulp sales amounted to about 246 million Euro, representing approximately 83% of Altri's total revenue.

In the first semester of 2013, Altri exported about 462,000 tons of pulp, which represented 94% of the company's pulp sales. These exports amounted 232 million Euro.

Evolution of pulp production between 1H 2012 and 1H 2013 by industrial unit (thousands tons)

FINANCIAL REVIEW

1º SEMESTRE 2013 The consolidated financial information of Altri has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted in the European Union.

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

thousand euros	1H 2012	1H 2013	1H13/1H12 Var%
Sales	259,991	285,838	10%
Services rendered	3,466	4,300	24%
Other Income	2,540	5,351	111%
Total Revenues	265,997	295,489	11.1%
Costs of sales	108,375	123,832	14%
External supplies and services	71,298	74,588	5%
Payroll expenses	16,606	13,504	-19%
Provisions and impairment losses	0	628	-
Other expenses	3,105	7,609	145%
Total expenses (a)	199,384	220,160	10.4%
EBITDA (b)	66,613	75,328	13.1%
Margin	25.0%	25.5%	+0,5 pp
Amortisation and depreciation	24,836	24,639	-0.8%
Other indirect taxes	-	2,723
EBIT (c)	41,777	47,967	14.8%
Margin	15.7%	16.2%	+0,5 pp
Gains and losses in associated companies	1,086	1,109	2.2%
Financial expenses	-19,702	-14,619	-25.8%
Financial income	3,660	1,973	-46.1%
Financial profit	-14,956	-11,537	-22.9%
Profit before income tax	26,821	36,431	35.8%
Income tax	-4,618	-6,164	-
Minority interest	2	10	-
Profit for the period from discontinued operations attributable to
parent company's shareholders	22,202	30,256	36.3%

(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

Total revenues for the first semester of 2013 amounted to about 295 million Euro, which represents an increase of 11% compared to the total revenue recorded in the same period of 2012. During the first semester of 2013, Altri produced about 482,000 tons of pulp, which corresponds to an increase of about 5% compared to 459,000 tons of pulp produced in the first semester of 2012.

Total costs, excluding depreciation, interest and taxes amounted to approximately 220.2 million Euro, 10% higher compared to the first semester of 2012. It should be noted, however, that revenue growth was greater than the increase in costs.

1º SEMESTRE 2013 EBITDA of the first semester of 2013 reached approximately 75 million Euro, which represents an increase of 13% compared to EBITDA of 66.6 million Euro recorded in the same period of 2012. The EBITDA margin reached 25.5%, having improved 50 b.p. Operating profit (EBIT) amounted to about 48 million Euro, which represents an increase of about 15% compared to EBIT of the first semester of 2012, and the margin was 16.2%, which corresponds to an increase of 0.5 percentage points.

Altri's net profit reached about 30.3 million Euro, an increase of 36% compared to the profit recorded in the same period of 2012.

The Group quarterly performance was as follows:

thousand euros	2Q 2012	1Q 2013	2Q 2013	2Q13/2Q12 Var%	2Q13/1Q13 Var%
Sales Services rendered Other Income Total Revenues	140,094 1,739 1,364 143,197	140,330 2,157 2,700 145,187	145,508 2,143 2,651 150,302	3.9% 23.2% 94.4% 5.0%	3.7% -0.6% -1.8% 3.5%
Costs of sales External supplies and services Payroll expenses Provisions and impairment losses Other expenses Total expenses (a)	57,115 36,346 9,633 0 2,080 105,174	61,233 37,929 6,740 0 2,981 108,883	62,599 36,659 6,764 628 4,628 111,278	9.6% 0.9% -29.8% 122.5% 5.8%	2.2% -3.3% 0.3% 55.3% 2.2%
EBITDA (b) Margin	38,023 26.6%	36,304 25.0%	39,024 26.0%	2.6% -0,6 pp	7.5% +1,0 pp
Amortisation and depreciation Other indirect taxes	12,428 -	12,373 -	12,266 2,723	-1.3%	-0.9%
EBIT (c) Margin	25,595 17.9%	23,931 16.5%	24,036 16.0%	-6.1% -1,9 pp	0.4% -0,5 pp
Gains and losses in associated companies Financial expenses Financial income Financial profit	955 -9,529 2,009 -6,564.5	474 -7,850 1,282 -6,094.0	635 -6,769 691 -5,442.6	-33.5% -29.0% -65.6% -17.1%	33.9% -13.8% -46.1% -10.7%
Profit before income tax	19,030	17,837	18,593	-2.3%	s s
Income tax Minority interest	-3,182 0	-3,638 4	-2,526 6	-20.6% s s	s s s.s.
Profit for the period from discontinued operations attributable to parent company's shareholders	15,848	14,195	16,061	1.3%	13.1%

(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

Total revenues for the second quarter of 2013 amounted to about 150 million Euro, an increase of 5% compared to total revenues recorded in the same period of 2012.

Revenue from pulp sales reached approximately 125 million Euro in the second quarter, of which exports amounted to 118.1 million Euro. Both total turnover and the amount exported constitute absolute quarterly records.

On the second quarter of 2013, EBITDA reached approximately 39 million Euro, reflecting an increase of 2.6% over the second quarter of 2012 and an increase of 7.5% compared to the EBITDA reported in the first quarter of 2013. The EBITDA margin was 26%.

Key balance sheet indicators

1º SEMESTRE 2013 Total investment in the first quarter of 2013 amounted to 9 million Euro.

Altri's nominal remunerated debt net of cash and cash equivalents and investments available for sale on June 30, 2013 amounted to 589.6 million Euro, decreasing about 30 million compared to December 31, 2012.

The net debt ratio for the last four quarters stood at 3.9x.

Financing needs are fully assured, holding the Group 226.3 million Euro of cash and cash equivalents and investments available for sale, as of June 30, 2013.

In terms of ratios, considering the accumulated EBIT of the past four quarters that reached 100.4 million Euro, Altri shows in the end of June, 2013, a Return on Capital Employed² of 12,5%.

The Return on Equity (Net profit/equity), based on the accumulated net profit of the past four quarters reached about 28.6%.

thousand euro	2012	1H 2013	Var%
Biological assets	108,034.8	107,990.9	0%
Tangible assets	424,105.2	405,743.1	-4%
Goodw ill	265,531.4	265,531.4	0%
Investments available for sale	14,981.9	14,964.6	0%
Others	41,153.4	43,637.1	6%
Total non current assets	853,806.6	837,867.1	-2%
Inventories	47,440.3	54,385.0	15%
Customers	94,859.4	97,807.8	3%
Cash and cash equivalentes	112,392.5	211,287.9	88%
Others	19,861.2	20,406.0	3%
Total current assets	274,553.4	383,886.8	40%
Total assets	1,128,360.0	1,221,753.8	8%
Shareholder's equity and minority interests	183,926.9	210,684.9	15%
Bank loans	103,556.9	162,699.0	57%
Other loans	454,999.1	445,559.7	-2%
Reimbursable incentives	22,770.2	12,539.4	-45%
Others	41,092.2	53,392.8	30%
Total non current liabilities	622,418.4	674,190.9	8%
Bank loans	45,467.2	40,482.0	-11%
Other current loans	139,404.0	163,239.4	17%
Reimbursable subsidies	11,694.6	1,502.0	-87%
Suppliers	56,343.4	66,262.0	18%
Others	69,105.5	65,392.6	-5%
Total current liabilities

² EBIT of the past four quarters/(net debt + equity)

SECOND SEMESTER 2013 OUTLOOK

The demand for bleached pulp has been undergoing a recurring growth period in the last 10 years mainly driven by demand from Asia. This reality was repeated during the first semester of 2013. Regarding the second semester, it will be expect a persistence of this trend, although it is anticipated some seasonal reduction in demand during summer months.

The growth on the supply side has been absorbed by the growing demand from the tissue paper and packaging essentially.

Altri's Board of Directors will continue to implement the strategic policy defined that is based on the reduction in net debt of the Group, through the generation of cash flow; continuous improvement in asset quality and an effective cost control.

CORPORATE GOVERNANCE

1º SEMESTRE 2013 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 report on the governance of society is an integral part of the Annual Report and Accounts 2012 Altri and is available on our website (www.altri.pt).

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 2013 Altri and its subsidiaries had no own shares and did not acquire or sell any own shares 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 of 30 June 2013, the held shares were as follows:

Paulo Jorge dos Santos Fernandes (a)	20.513.168
Pedro Macedo Pinto de Mendonça	1.705.000
Domingos José Vieira de Matos (b)	14.417.970
João Manuel Matos Borges de Oliveira (c)	29.000.000
Laurentina da Silva Martins	0

(a) – In addition to the 19,113,168 Altri, SGPS, S.A. shares personally held Paulo Jorge dos Santos Fernandes, 1,400,000 Altri, SGPS, S.A. shares are held by the company ACTIUM CAPITAL – SGPS, S.A., where the director Paulo Jorge dos Santos Fernandes is both director and majority shareholder. Thus, in legal terms, a total of 20,513,168 shares, representing 10% of the share capital and voting rights of Altri, SGPS, S.A. are attributable to Paulo Jorge dos Santos Fernandes.

(b) – In addition to the 13,939,432 Altri, SGPS, S.A. shares personally held Domingos José Vieira de Matos, 478,538 Altri, SGPS, S.A. shares are held by the company LIVREFLUXO – SGPS, S.A., where the director Domingos José Vieira de Matos is both director and majority shareholder. Thus, in legal terms, a total of 14,417,970 shares, representing 7.03% of the share capital and voting rights of Altri, SGPS, S.A. are attributable to Domingos José Vieira de Matos.

(c) – 29,000,000 shares represent the total Altri, SGPS, S.A. shares held by company CADERNO AZUL – SGPS, S.A., where the director João Manuel Matos Borges de Oliveira is both director and shareholder.

As of June 30, 2013, 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	Shares Held	Direct % of the voting rights
Lazard Frères Gestion SAS	4,157,000	2.03%
Norges Bank	4,149,572	2.02%
Maria João Fernandes Vieira de Matos	4,107,000	2.00%

	Shares	Direct % of the voting
1º SEMESTRE 2013 Exceeding 5% of the voting rights	Held	rights
Paulo Jorge dos Santos Fernandes (a)	19,113,168	9.32%
Domingos José Vieira de Matos (b)	13,939,432	6.80%
Pedro Miguel Matos Borges de Oliveira	10,930,000	5.33%
Bestinver Gestión S.A., SGIIC	10,269,347	5.01%

(a) – In addition to the 19,113,168 Altri, SGPS, S.A. shares personally held Paulo Jorge dos Santos Fernandes, 1,400,000 Altri, SGPS, S.A. shares are held by the company ACTIUM CAPITAL – SGPS, S.A., where the director Paulo Jorge dos Santos Fernandes is both director and majority shareholder. Thus, in legal terms, a total of 20,513,168 shares, representing 10% of the share capital and voting rights of Altri, SGPS, S.A. are attributable to Paulo Jorge dos Santos Fernandes.

(b) – In addition to the 13,939,432 Altri, SGPS, S.A. shares personally held Domingos José Vieira de Matos, 478,538 Altri, SGPS, S.A. shares are held by the company LIVREFLUXO – SGPS, S.A., where the director Domingos José Vieira de Matos is both director and majority shareholder. Thus, in legal terms, a total of 14,417,970 shares, representing 7.03% of the share capital and voting rights of Altri, SGPS, S.A. are attributable to Domingos José Vieira de Matos.

		Direct % of the voting
Exceeding 10% of the voting rights	Shares held	rights
Promendo, SGPS, S.A. (a)	29,787,782	14.52%
Caderno Azul, SGPS, S.A. (b)	29,000,000	14.14%

(a) – 29,787,782 Altri, SGPS, S.A. shares held by PROMENDO – SGPS, S.A. are attributable to Ana Rebelo de Carvalho Menéres de Mendonça, its director and shareholder, holder of a 59,6% stake.

(b) – 29,000,000 shares represent the total Altri, SGPS, S.A. shares held by CADERNO AZUL – SGPS, S.A., where the director João Manuel Matos Borges de Oliveira is both director and shareholder.

Altri was not notified of any holdings above 15% of the voting rights.

DECLARATION OF RESPONSIBILITY

1º SEMESTRE 2013 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, no. 3, of the Stock Exchange Regulation, the Board of Directors declares that the financial statements 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 don't want to conclude without expressing a vote of thanks to our suppliers, financial institutions and other partners in 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, August 1, 2013

The Board of Directors:

Paulo Jorge dos Santos Fernandes President of the Board of Directors

João Manuel Matos Borges de Oliveira 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

Pedro Macedo Pinto de Mendonça Member of the Board of Directors

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
Member of the Board of Directors	Dec 2012	Acquisitions Disposals		Jun 2013
Paulo Jorge dos Santos Fernandes	16.640.929	2.472.239	-	19.113.168
Paulo Jorge dos Santos Fernandes (allocation through ACTIUM CAPITAL - SGPS, S.A.)	1.400.000	-	-	1.400.000
João Manuel Matos Borges de Oliveira (allocation through CADERNO AZUL - SGPS, S.A.)	28.000.000	1.000.000	-	29.000.000
Domingos José Vieira de Matos	13.939.432	-	-	13.939.432
Domingos José Vieira de Matos (allocation through LIVRE FLUXO - SGPS, S.A.)	-	478.538	-	478.538
Pedro Macedo Pinto de Mendonça	1.705.000	-	-	1.705.000

Paulo Jorge dos Santos Fernandes

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	16,640,929
22/Jan/2013	Purchase	1,200,000	1.800000	NYSE Euronext Lisbon	17,840,929
28/Jan/2013	Purchase	1,200,000	1.922000	NYSE Euronext Lisbon	19,040,929
8/Fev/2013	Purchase	72,239	1.850000	NYSE Euronext Lisbon	19,113,168
30/Jun/2013	-	-	-	-	19,113,168

Paulo Jorge dos Santos Fernandes (allocation through ACTIUM CAPITAL - SGPS, S.A.)

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	1,400,000
30/Jun/2013	-	-	-	-	1,400,000

Pedro Macedo Pinto de Mendonça

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	1,705,000
31/Dez/2012	-	-	-	-	1,705,000

Domingos José Vieira de Matos

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	13,939,432
30/Jun/2013	-	-	-	-	13,939,432

Domingos José Vieira de Matos (allocation through LIVRE FLUXO - SGPS, S.A.)

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	-
25/Jun/2013	Purchase	200,000	1.704590	NYSE Euronext Lisbon	200,000
26/Jun/2013	Purchase	278,538	1.731275	NYSE Euronext Lisbon	478,538
30/Jun/2013	-	-	-	-	478,538

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

Date	Nature	Volume	Price (€)	Local	Nº shares
31/Dez/2012	-	-	-	-	28,000,000
3/Jan/2013	Purchase	715,000	1.691400	NYSE Euronext Lisbon	28,715,000
4/Jan/2013	Purchase	285,000	1.705000	NYSE Euronext Lisbon	29,000,000
30/Jun/2013	-	-	-	-	29,000,000

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

The signatories individually declare that, to their knowledge, the Interim Management Report, the Individual and Consolidated Financial Statements prepared in accordance with 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") and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties that they face.

Oporto, August 1, 2013

Paulo Jorge dos Santos Fernandes President of the Board of Directors

João Manuel Matos Borges de Oliveira 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

Pedro Macedo Pinto de Mendonça Member of the Board of Directors

CONSOLIDATED FINANCIAL STATEMENTS

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013 AND 31 DECEMBER 2012

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

ASSETS	Notes	30.06.2013	31.12.2012
NON CURRENT ASSETS:
Biological assets		107.990.871	108.034.768
Tangible fixed assets		405.743.108	424.105.163
Investment property		464.316	468.006
Goodwill		265.531.404	265.531.404
Intangible assets		332.133	605.388
Investments in associated companies and joint ventures	4.2	7.446.784	6.337.694
Investments available for sale	4.3	14.964.550	14.981.903
Other non current assets	10	3.161.476	384.915
Deferred tax assets Total non current assets	7	32.232.418 837.867.060	33.357.371 853.806.612
CURRENT ASSETS: Inventories		54.384.982	47.440.279
Customers		97.807.841	94.859.425
Other debtors		4.111.542	7.241.482
State and other public entities		12.866.787	9.810.537
Other current assets		3.427.683	2.547.443
Derivatives		-	261.783
Cash and cash equivalents	6	211.287.944	112.392.485
Total current assets		383.886.779	274.553.434
Total assets		1.221.753.839	1.128.360.046
SHAREHOLDERS' FUNDS AND LIABILITIES		30.06.2013	31.12.2012
SHAREHOLDERS' FUNDS:
Share capital	8	25.641.459	25.641.459
Legal reserve		2.862.981	2.862.981
Other reserves		151.785.894	103.112.415
Consolidated net profit / (loss)		30.256.290	52.181.891
Total shareholders' funds attributable to the parent company's shareholders		210.546.624	183.798.746
Non controlling interests		138.280	128.166
Total Shareholders' funds		210.684.904	183.926.912
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	9	162.699.023	103.556.923
Other loans	9	445.559.716	454.999.132
Reimbursable incentives	9	12.539.423	22.770.236
Other non current creditors		528.802	528.802
Other non current liabilities		30.954.407	22.096.030
Deferred tax liabilities	7	17.301.559	16.931.978
Provisions	10	4.607.993	1.535.342
Total non current liabilities		674.190.923	622.418.443
CURRENT LIABILITIES:
Bank loans	9	40.482.034	45.467.181
Other loans	9	163.239.434	139.404.040
Reimbursable incentives	9	1.501.997	11.694.604
Suppliers		66.261.954	56.343.385
Other current creditors		5.258.301	6.679.435
State and other public entities		7.802.815	5.091.056
Other current liabilities		36.075.336	35.221.194
Derivatives Total current liabilities	11	16.256.141 336.878.012	22.113.796 322.014.691
Total shareholders' funds and liabilities		1.221.753.839	1.128.360.046

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

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2013 AND 2012

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

		SEMESTER ENDED		QUARTER ENDED
	Notes	30.06.2013	30.06.2012	30.06.2013	30.06.2012
Sales		285.837.991	259.991.465	145.507.807	140.094.159
Services rendered		4.299.950	3.465.532	2.143.020	1.738.956
Other income	14	5.350.918	2.540.367	2.651.215	1.364.065
Cost of sales		(123.831.518)	(108.374.785)	(62.599.000)	(57.115.382)
External supplies and services		(74.588.161)	(71.298.197)	(36.659.094)	(36.346.046)
Payroll expenses		(13.504.254)	(16.606.187)	(6.763.765)	(9.632.566)
Amortisation and depreciation		(24.638.510)	(24.835.791)	(12.265.787)	(12.428.368)
Provisions and other impairment losses	10	(627.755)	-	(627.755)	-
Other expenses	15	(7.608.790)	(3.105.152)	(4.628.127)	(2.079.897)
Other indirect taxes	10	(2.722.651)	-	(2.722.651)	-
Gains and losses in associated companies and joint ventures	4.2	1.109.089	1.085.651	634.980	955.138
Financial expenses	12	(14.618.769)	(19.701.833)	(6.768.780)	(9.528.995)
Financial income	12	1.973.006	3.660.355	691.158	2.009.353
Profit before income tax		36.430.546	26.821.425	18.593.221	19.030.417
Income tax		(6.164.142)	(4.617.637)	(2.525.924)	(3.181.851)
Consolidated net profit		30.266.404	22.203.788	16.067.297	15.848.566
Attributable to:
Parent company's shareholders	13	30.256.290	22.202.129	16.061.059	15.845.697
Non controlling interests		10.114	1.659	6.238	2.869
		30.266.404	22.203.788	16.067.297	15.848.566
Earnings per share:
Basic	13	0,15	0,11	0,08	0,08
Diluted	13	0,15	0,11	0,08	0,08

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 2013 AND 2012

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

	SEMESTER ENDED		QUARTER ENDED
	30.06.2013	30.06.2012	30.06.2013	30.06.2012
Net consolidated profit / (loss) for the period	30.266.404	22.203.788	16.067.297	15.848.566
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 Change in fair value of available for sale investments	1.642.400 (22.200) 1.620.200	(13.324.393) - (13.324.393)	3.758.288 7.800 3.766.088	(4.832.001) - (4.832.001)
Other comprehensive income	1.620.200	(13.324.393)	3.766.088	(4.832.001)
Total comprehensive income for the period	31.886.604	8.879.395	19.833.385	11.016.565
Attributable to: Shareholders' of the parent company Non controlling interests	31.876.490 10.114	8.877.736 1.659	19.827.147 6.238	11.013.696 2.869

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 2013 AND 2012

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

Non Total Others controlling shareholder's Notes Share capital Legal reserve reserves Net profit Total interests funds Balance as of 1 January 2012 25.641.459 2.862.981 89.585.006 22.567.762 140.657.208 105.421 140.762.629 Appropriation of the consolidated net profit of 2011 - - 22.567.762 (22.567.762) - - - Dividends - - (4.102.633) - (4.102.633) - (4.102.633) Others - - 19.212 - 19.212 - 19.212 Total comprehensive income for the period - - (13.324.393) 22.202.129 8.877.736 1.659 8.879.395 Balance as of 30 June 2012 25.641.459 2.862.981 94.744.954 22.202.129 145.451.523 107.080 145.558.603 Balance as of 1 January 2013 25.641.459 2.862.981 103.112.415 52.181.891 183.798.746 128.166 183.926.912 Appropriation of the consolidated net profit of 2012 - - 52.181.891 (52.181.891) - - - Dividends 18 - - (5.128.292) - (5.128.292) - (5.128.292) Others - - (320) - (320) - (320) Total comprehensive income for the period - - 1.620.200 30.256.290 31.876.490 10.114 31.886.604 Balance as of 30 June 2013 8 25.641.459 2.862.981 151.785.894 30.256.290 210.546.624 138.280 210.684.904		Attributable to the parent company's shareholders

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 2013 AND 2012

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

		SEMESTER ENDED		QUARTER ENDED
	Notes	30.06.2013	30.06.2012	30.06.2013	30.06.2012
Operating activities:
Cash flow from operating activities (1)		66.355.871	36.993.387	38.750.278	25.688.302
Investment activities:
Collections relating to:
Investments	6	12.000	200.000	12.000	-
Tangible assets		305.916	371.476	280.971	149.335
Interest and similar income		1.735.257	2.019.500	1.640.035	934.079
Investment subsidies		612.843	530.718	555.723	138.931
Payments relating to:
Investments	6	(2.973.844)	(4.050.469)	(2.961.094)	(4.041.469)
Investment subsidies		(4.035.948)	-	-	-
Intangible assets		-	(3.223)	-	-
Tangible assets		(6.902.495)	(6.436.270)	(3.521.285)	(3.954.828)
Cash flow from investment activities (2)		(11.246.271)	(7.368.268)	(3.993.650)	(6.773.952)
Financing activities:
Collections relating to:
Loans obtained		103.230.087	15.847.581	99.281.852	6.779.510
Payments relating to:
Loans obtained		(32.709.729)	(29.490.624)	(9.005.382)	(7.579.806)
Interest and similar costs		(19.838.216)	(18.011.256)	(5.401.680)	(3.897.193)
Distribution of dividends	18	(5.128.292)	(4.102.633)	(5.128.292)	(4.102.633)
Cash flow from financing activities (3)		45.553.850	(35.756.932)	79.746.498	(8.800.122)
Cash and cash equivalents at the beginning of the period		110.624.494	111.418.007	96.784.818	95.171.966
Variation of cash and cash equivalents: (1)+(2)+(3)		100.663.450	(6.131.813)	114.503.126	10.114.228
Cash and cash equivalents at the end of the period	6	211.287.944	105.286.194	211.287.944	105.286.194

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

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

(Amounts expressed in Euro)

1. INTRODUCTORY NOTE

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

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

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

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

The consolidated financial statements of Altri Group are presented in Euro rounded off to the unit, which is the currency used by the Group in its operations and considered as the functional currency.

2. MAIN ACCOUNTING POLICIES AND BASIS FOR PRESENTATION

The consolidated financial statements as of 30 June 2013 were prepared using accounting policies consistent with the International Financial Reporting Standards and in accordance with the International Accounting Standard and International Accounting Standard 34 – Interim Financial Reporting and includes the statement of financial position, the statement of profit and loss, the statement of comprehensive income, the statement of changes in equity and the condensed statement of cash flows as well as the selected explanatory notes.

The accounting policies used in the preparation of the consolidated financial statements of Altri are consistent with those used in the year ended 31 December 2012.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF MISTAKES

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

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2013 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

4. INVESTMENTS

4.1 INVESTMENTS IN SUBSIDIARIES

The companies included in the consolidated financial statements by the full consolidation method, its headquarters, percentage participation held and main activity as of 30 June 2013 and 31 December 2012, are as follows:

Company	Head Office		Percentage Held	Main activity
Mother-Company: Altri, SGPS, S.A.	OPorto	2013	2012	Investment management
Group Caima / Celtejo / Celbi:
Altri - Energias Renováveis, SGPS, S.A.	Vila Velha de Ródão 99.83%		99.83%	Investment management
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
Celbinave – Tráfego e Estiva SGPS, Unipessoal, Lda.	Figueira da Foz	100%	100%	Freightage of ships
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão 99.83%		99.83%	Production and Commercialization of pulp
Celulose Beira Industrial (Celbi), S.A.	Figueira da Foz	100%	100%	Production and Commercialization of pulp
Celulose do Caima, SGPS, S.A.	Figueira da Foz	100%	100%	Investment management
Inflora – Sociedade de Investimentos Florestais, S.A.	Figueira da Foz	100%	100%	Sylvan exploration
Invescaima – Investimentos e Participações, SGPS, S.A.	Figueira da Foz	100%	100%	Investment management
Pedro Frutícola, Sociedade Frutícola, S.A.	Constância	100%	100%	Agriculture production
Viveiros do Furadouro Unipessoal, Lda.	Óbidos	100%		100% Production of plants in nurseries and services related w ith forests and landscapes

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 2013 and 31 December 2012 are as follows:

Company	Percentage held		Main activity
	2013	2012
Associated companies:
Operfoz – Operadores do Porto da Figueira da Foz, Lda.	33.33%	33.33%	Harbor operations
Joint ventures:
EDP – Produção Bioeléctrica, S.A.	50%	50%	Electric energy production

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

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

(Amounts expressed in Euro)

The book value, net assets, share capital and net profit for the period ended on 30 June 2013 for these associated companies and joint ventures are as follows:

Company	Book value (a)	Asset	Equity	Net profit
Associated companies:
Operfoz – Operadores do Porto da Figueira da Foz, Lda.	593,381	4,086,307	1,780,141	501,538
Joint ventures:
EDP – Produção Bioeléctrica, S.A.		6,853,403 142,031,194 15,243,868 1,892,923
	7,446,784

(a) – includes loans granted.

4.3 INVESTMENTS AVAILABLE FOR SALE

As of 30 June 2013 and 31 December 2012 the investments available for sale are as follows:

Company	Book value
	2013	2012
Rigor Capital - Produção de Energia. Lda.	10,527,397	10,527,397
Other investments	4,437,153	4,454,506
	14,964,550	14,981,903

The caption "Investments available for sale" 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.

"Other investments" corresponds mainly to listed securities which are stated at their market value.

5. CHANGES OCCURED IN THE CONSOLIDATION PERIMETER

During the six months period ended 30 June 2013, there were no changes in the consolidation perimeter compared to 31 December 2012.

6. CASH AND CASH EQUIVALENTS

As of 30 June 2013 and 2012, the caption "Cash and cash equivalents" can be detailed as follows:

	30.06.2013	30.06.2012
Cash Bank deposits	13,575 211,274,369	15,136 106,562,276
	211,287,944	106,577,412
Bank overdrafts	-	(1,291,218)
Cash and cash equivalents	211,287,944	105,286,194

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2013 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

During the six months period ended 30 June 2013, receipts from investments were as follows:

	Transaction Amount	Amount received
Sócasca –Recolha e Comércio de Recicláveis, S.A. (Sold in 2011)	2.300.000 ---------------	12.000 ----------------
	2.300.000	12.000
	=========	=========

During the six months period ended 30 June 2012, receipts from investments were as follows:

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

During the six months period ended 30 June 2013, payments from investments were as follows:

	Transaction amount	Amount paid
Other investments available for sale (Note 4.3)	2.973.844 ---------------	2.973.844 ----------------
	2.973.844	2.973.844
	=========	=========

During the six months period ended 30 June 2012, payments from investments were as follows:

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

7. CURRENT AND DEFERRED TAXES

In accordance with current legislation, tax returns are subject to review and correction by the tax authorities during a four-year period (five years for Social Security), with the exception when there have been tax losses, cases with there have been granted tax benefits, or tax inspections or claims are in progress, in which cases the periods may be extended or suspended. Therefore, the Company tax returns since 2009 are still subject to review.

The Board of Directors believes that any potential corrections resulting from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the consolidated financial statements as of 30 June 2013.

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

(Amounts expressed in Euro)

The movements occurred in deferred tax assets and liabilities in the six months periods ended in 30 June 2013 and 2012 were as follows:

		2013
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2013	33,357,371	16,931,978
Effects on income statement:
Harmonization of depreciation rates	678,406	-
Other effects	(242,216)	369,581
Total effect on income statement	436,190	369,581
Effect on shareholders' funds:
Fair values of derivatives	(1,561,143)	-
Closing balance as of 30.06.2013	32,232,418	17,301,559
		2012
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2012	13,699,322	444,167
Effects on income statement:
Harmonization of depreciation rates	825,262	-
Other effects	29,992	(3,888)
Total effect on income statement	855,254	(3,888)
Effect on shareholders' funds:
Fair values of derivatives	4,820,595	-
Closing balance as of 30.06.2012	19,375,171	440,279

8. SHARE CAPITAL

As of 30 June 2013 the Company's fully subscribed and paid up capital consisted of 205,131,672 shares with a nominal value of 12.5 cents of a Euro each.

As of 30 June 2013 there were no entities holding more than 20% of the Company's subscribed share capital.

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

(Amounts expressed in Euro)

9. BANK LOANS, OTHER LOANS AND REIMBURSABLE INCENTIVES

As of 30 June 2013 and 31 December 2012, the captions "Bank loans", "Other loans" and "Reimbursable incentives" can be detailed as follows:

			30/06/2013
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	40,557,034	162,999,023	203,556,057	40,482,034	162,699,023	203,181,057
Bank loans	40,557,034	162,999,023	203,556,057	40,482,034	162,699,023	203,181,057
Commercial paper	130,500,000	72,000,000	202,500,000	129,661,643	71,926,290	201,587,933
Bonds	-	375,000,000	375,000,000	-	373,633,426	373,633,426
Other loans	34,680,775	-	34,680,775	33,577,791	-	33,577,791
Other loans	165,180,775	447,000,000	612,180,775	163,239,434	445,559,716	608,799,150
Reimbursable incentives	1,501,997	12,539,423	14,041,420	1,501,997	12,539,423	14,041,420
	207,239,806	622,538,446	829,778,252	205,223,465	620,798,162	826,021,627

			31/12/2012
		Nominal Value		Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	43,699,190	103,556,923	147,256,113	43,699,190	103,556,923	147,256,113
Bank overdrafts	1,767,991	-	1,767,991	1,767,991	-	1,767,991
Bank loans	45,467,181	103,556,923	149,024,104	45,467,181	103,556,923	149,024,104
Commercial paper	106,000,000	82,000,000	188,000,000	105,717,328	81,894,700	187,612,028
Bonds	-	375,000,000	375,000,000	-	373,104,432	373,104,432
Other loans	34,857,197	-	34,857,197	33,686,712	-	33,686,712
Other loans	140,857,197	457,000,000	597,857,197	139,404,040	454,999,132	594,403,172
Reimbursable incentives	11,694,604	22,770,236	34,464,840	11,694,604	22,770,236	34,464,840
	198,018,982	583,327,159	781,346,141	196,565,825	581,326,291	777,892,116

As of 30 June 2013, there are bank overdrafts amounted to 10,000,000 Euro (14,001,000 Euro as of 31 December 2012), classified in the caption "Bank Loans".

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

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

(Amounts expressed in Euro)

10. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses for the periods ended at 30 June 2013 and 2012 can be detailed as follows:

		30.06.2013
		Impairment losses in
	Provisions	current assets	Total
Opening balance	1,535,342	5,536,965	7,072,307
Increases	3,072,651	450,000	3,522,651
Utilizations	-	(1,003,738)	(1,003,738)
Closing balance	4,607,993	4,983,227	9,591,220

		30.06.2012
		Impairment losses in
	Provisions	current assets	Total
Opening balance	1,149,668	6,851,677	8,001,345
Increases	1,000,000	-	1,000,000
Utilizations	-	-	-
Closing balance	2,149,668	6,851,677	9,001,345

During the six months ended in June 30 2013, the subsidiary Caima Indústria de Celulose, S.A., proceeded to the payment of an additional settlement of the Value Added Tax from previous years in the amount of 2,722,651 Euro which was recorded under the caption "Other non-current assets" for not agreeing with the fundamentals of that settlement. To face the risk of such settlement, Altri recorded a liability under the caption "Provisions" against the caption "Other indirect taxes" in the income statement.

The remaining increase in provisions and impairment losses in the amount of 800,000 Euro, is recorded against the income statement caption "Provisions and other impairment losses".

The reduction of impairment losses verified in the six months ended 30 June 2013 relates to the use of impairment losses in the amount of 831,493 Euro and reversals of impairment losses in the amount of 172,245 Euro.

The amount recorded under the caption "Provisions", at 30 June 2013 and 2012, is the best estimate of the Administration in order to face all the losses that may be supported due to the general risks from the activity of Altri's Group.

11. DERIVATIVE FINANCIAL INSTRUMENTS

As of 30 June 2013 and 2012 the companies of Altri's Group had contracts concerning financial derivative instruments to hedge of variations in pulp price and interest rates being these instruments registered according to its fair value.

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

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2013 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

As of 30 June 2013 and 2012 the detail of the financial derivative instruments are as follows:

	Pulp price hedging derivatives	Interest rates derivatives	Exchange rate derivatives	Total
Opening balance as of 31.12.2012	(8,696,330)	(13,417,466)	261,783	(21,852,013)
Derivatives fair value variation/cessation
Effects on shareholders' funds	1,872,392	1,331,151	-	3,203,543
Effects on the profit and loss statement	-	2,654,112	(261,783)	2,392,329
Closing balance as of 30.06.2013	(6,823,938)	(9,432,203)	-	(16,256,141)
	Pulp price hedging	Interest rates
	derivatives	derivatives	Total
Opening balance as of 31.12.2011	(302,933)	(14,449,051)	(14,751,984)
Derivatives fair value variation/cessation
Effects on shareholders' funds	(17,709,811)	(481,112)	(18,190,923)
Effects on the profit and loss statement	-	661,637	661,637
Closing balance as of 30.06.2012	(18,012,744)	(14,268,526)	(32,281,270)

12. FINANCIAL RESULTS

The financial results for the six months periods ended at 30 June 2013 and 2012 are detailed as follows:

	30.06.2013	30.06.2012
Financial expenses:
Interest	10,681,676	14,014,741
Other financial expenses	3,937,093	5,687,092
	14,618,769	19,701,833
Financial income:
Interest	1,111,069	2,609,491
Other financial income	861,937	1,050,864
	1,973,006	3,660,355

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

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

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2013 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

13. EARNINGS PER SHARE

Earnings per share in the six months periods ended as of 30 June 2013 and 2012 were calculated considering the following amounts:

	30.06.2013	30.06.2012
Share number considered for the computation of basic and diluted earning	205,131,672	205,131,672
Net profit considered for the computation of basic and diluted earning	30,256,290	22,202,129
Earnings per share Basic Diluted	0.15 0.15	0.11 0.11

14. OTHER INCOME

As of 30 June 2013 and 2012 the caption of the statement of profit and loss "Other Income" is detailed as follows:

	30.06.2013	30.06.2012
Investment and exploration subsidies	4,491,725	1,419,729
Gains obtained from the alienation of fixed assets	-	88,397
Other income	859,193	1,032,241
	5,350,918	2,540,367

15. OTHER EXPENSES

As of 30 June 2013 and 2012 the caption of the statement of profit and loss "Other expenses" is detailed as follows:

	30/06/2013	30/06/2012
Direct taxes and charges	867,779	746,290
Losses in commodities derivative contracts (Note 11)	5,761,410	1,862,675
Other costs	979,601	496,187
	7,608,790	3,105,152

16. SEGMENTAL INFORMATION

On 16 April 2008, the Board of Administration of Altri, S.G.P.S., S.A. approved a simple reorganization project of this society which implies the split of Altri's two business units that operates in the pulp and paper sector and in the steel and storage systems sector. This reorganization aimed a bigger focus and transparency on ALTRI's business, and giving each of the areas an opportunity to be better seen and better evaluated by the market, and allows Altri Group to focus its activity on its core business, production and commercialization of bleached paper pulp form eucalyptus, so the Board of Directors believe that there is only one business segment and the management information is reported and analyzed on this basis.

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

(Amounts expressed in Euro)

17. RELATED PARTIES

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

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

During the six months periods ended at 30 June 2013 and 2012, there were no transactions with the Directors of the Group and were no granted loans.

As of 30 June 2013 and 2012 the balances and transactions with related parties are as follow:

		Purchases and services		Sales and services	Interest income
Transactions	30.06.2013	30.06.2012	30.06.2013	30.06.2012	30.06.2013	30.06.2012
Associated companies and joint ventures (a)	773,972	-	2,512,339	2,372,786	160,466	292,441
Other related parties (b)	3,193,695	4,062,552	-	-	-	-
	3,967,667	4,062,552	2,512,339	2,372,786	160,466	292,441
		Accounts payable		Accounts receivable	Granted loans
Balances	30.06.2013	30.06.2012	30.06.2013	30.06.2012	30.06.2013	30.06.2012
Associated companies and joint ventures (a)	135,825	295,683	1,255,733	461,712	13,807,905	16,807,905
Other related parties (b)	14,823	651,646	-	8 1	-	-
	150,648	947,329	1,255,733	461,793	13,807,905	16,807,905

(a) All entities consolidated by the equity method as of 30 June 2013 and 2012 (Note 4.2);

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

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

Besides the companies included in consolidation (Note 4), entities considered as related parties as of 30 June 2013 can be detailed as follow:

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2013

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

(Amounts expressed in Euro)

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

18. APPLICATION OF THE NET INCOME

Relating to the year ended in 2012, the Board of Directors proposed, in its general report, that the individual net loss of Altri, SGPS, S.A. in the amount of 4,145,968.07 Euro will be transferred to returned earnings. The proposal was approved in the General Assembly held on 18 April 2013.

The Board of Directors proposed also the distribution of free reserves in the amount of 5,128,292.80 Euro, as dividends, corresponding to a dividend of 0.025 Euro by share, this proposal was also approved on the General Assembly held on 18 April 2013.

19. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 31 July 2013.

20. EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards and with accordance with the International Accounting Standard 34 – Interim Financial Reporting, some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.

The Board of Directors, Paulo Jorge dos Santos Fernandes – President João Manuel Matos Borges de Oliveira Pedro Macedo Pinto de Mendonça Domingos José Vieira de Matos Laurentina da Silva Martins