Cofina SGPS

Quarterly Report • Nov 29, 2012

COFINA, SGPS, S.A. Public Company

Head Office: Rua do General Norton de Matos, 68, r/c – Porto Fiscal Number 502 293 225 Share Capital: 25,641,459 Euro

3 rd quarter '12 FINANCIAL INFORMATION (not audited)

The consolidated financial information of Cofina for the 3rd quarter 2012, prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS), can be presented as follows:

(amounts in thousand Euro)	3Q 2012	3Q 2011	Var (%) 3Q12/3Q11
Operating income	29,547	32,137	-8.1%
Circulation	16,531	17,808	-7.2%
Advertising	9,114	11,223	-18.8%
Alternative marketing products and others	3,902	3,107	25.6%
Operating income by segments	29,547	32,138	-8.1%
Newspapers	23,063	24,446	-5.7%
Magazines	6,484	7,692	-15.7%
Operating expenses (a)	25,168	26,821	-6.2%
Consolidated EBITDA (b)	4,378	5,317	-17.7%
EBITDA margin	14.8%	16.5%	- 1,7 p.p.
Newspapers EBITDA	4,369	5,065	-13.7%
Newspapers EBITDA margin	18.9%	20.7%	- 1,8 p.p.
Magazines EBITDA	9	252	-96.4%
Magazines EBITDA margin	0.1%	3.3%	- 3,1 p.p.
Amortisation and depreciation (-)	798	933	-14.5%
EBIT	3,580	4,384	-18.3%
EBIT margin	12.1%	13.6%	- 1,5 pp
Net financial income	(833)	(2,152)	-
Income before taxes and minority interests	2,748	2,232	23.1%
Income taxes	1,194	1,264	-5.5%
Minority interests	(22)	5	s s
Net consolidated profit / loss (c)	1,576	963	63.7%

(a) Operating expenses excluding amortisation

(b) EBITDA = earnings before interest, taxes, amortisation and depreciation

(c) Net profit / (loss) attributable to the parent company shareholders

The third quarter of 2012 maintained the path of the previous quarters: continued to be characterized by a reduction of private consumption, which led to a very significant contraction in the advertising investment.

Therefore, in this context, the total operating income reached approximately 29.5 million Euro in this period, corresponding to a decrease of 8% when compared to the homologous period. This decrease was motivated by the reduction in advertising income (-19%) and circulation income (-7%), having the alternative marketing products income recorded a significant increase (+26%).

EBITDA recorded in this period amounted to approximately 4.4 million Euro, which corresponds to a decrease of 17.7% year on year. EBITDA margin reached 15%. When referring to absolute figures, a 2.6 million Euro decrease was recorded in income in the 3rd quarter of 2012, when compared with the homologous period, whilst EBITDA recorded a contraction of approximately 1 million Euro.

The control and costs rationalization measures that have been adopted by Cofina allowed to continue to accommodate, in EBITDA terms, a significant part of the reductions recorded in income.

Consolidated net income recorded in the end of the third quarter of 2012 amounted to 1.6 million Euro, which represented a growth of 64% when compared to the third quarter of 2011.

(amounts in thousand Euro)	9M 2012	9M 2011	Var (%)
			9M12/9M11
Operating income	85,601	94,357	-9.3%
Circulation	46,231	49,635	-6.9%
Advertising	29,115	36,082	-19.3%
Alternative marketing products and others	10,256	8,640	18.7%
Operating income by segments	85,601	94,357	-9.3%
Newspapers	66,737	71,651	-6.9%
Magazines	18,865	22,706	-16.9%
Operating expenses (a)	74,262	79,987	-7.2%
Consolidated EBITDA (b)	11,339	14,370	-21.1%
EBITDA margin	13.2%	15.2%	- 2,0 p.p.
Newspapers EBITDA	12,149	15,097	-19.5%
Newspapers EBITDA margin	18.2%	21.1%	- 2,9 p.p.
Magazines EBITDA	-810	-727	-
Magazines EBITDA margin	-4.3%	-3.2%	-
Amortisation and depreciation (-)	2,396	2,806	-14.6%
EBIT	8,943	11,564	-22.7%
Margem EBIT	10.4%	12.3%	- 1,8 pp
Net financial income	(3,062)	(2,190)	-
Income before taxes and minority interests	5,881	9,374	-37.3%
Income taxes	3,633	3,998	-9.1%
Minority interests	25	(6)	-516.7%
Net consolidated profit / loss (c)	2,222	5,381	-58.7%

9 months Financial Statements

(a) Operating expenses excluding amortisation

(b) EBITDA = earnings before interest, taxes, amortisation and depreciation

(c) Net profit / (loss) attributable to the parent company shareholders

In accumulated figures, during the first nine months of 2012, income reached, approximately, 86 million Euro (-9%), EBITDA amounted to 11.3 million Euro (-21%) and net profit obtained amounted to, approximately, 2.2 million Euro.

As of September 30, 2012, the nominal net debt of Cofina amounted to 76.3 million Euro, which means a decrease of 9 million Euro, comparing to the 85.9 million Euro recorded in the homologous period.

	3Q 2012	3Q 2011	Var (%)
(amounts in thousand Euro)			3Q12/3Q11
Consolidated operating income	23,063	24,446	-5.7%
Circulation	12,656	13,426	-5.7%
Advertising	7,202	8,615	-16.4%
Alternative marketing products and others	3,205	2,405	33.3%
Operating expenses (a)	18,694	19,381	-3.5%
Consolidated EBITDA (b)	4,369	5,065	-13.7%
EBITDA margin	18.9%	20.7%	-1,8 p.p.

Newspaper Segment

(a) Operating expenses excluding amortisation

(b) EBITDA = earnings before interest, taxes, amortisation and depreciation

The newspaper segment of Cofina recorded, in the third quarter of 2012, a total income of 23 million Euro, which represents a decrease of 6% when compared with the homologous period. The advertising income recorded a decrease of approximately 16%, reaching 7.2 million Euro; while circulation income decreased approximately 6%, reaching 12.7 million Euro.

Alternative marketing products income recorded a growth of 33%, reaching approximately 3.2 million Euro.

Therefore, EBITDA reached in the quarter under analysis amounted to approximately 4.4 million Euro, a decrease of nearly 14%, when compared with the homologous period. EBITDA margin amounted to 18.9%.

Magazines Segment

Magazines segment, traditionally pro-cyclical, deepened the decrease recorded in revenues, namely in advertising income. Therefore, total income of this segment in the quarter under analysis reached approximately 6.5 million Euro, reflecting a decrease of nearly 16%, when compared to the homologous period of 2011.

	3Q 2012	3Q 2011	Var (%)
(amounts in thousand Euro)			3Q12/3Q11
Consolidated operating income	6,484	7,692	-15.7%
Circulation	3,875	4,382	-11.6%
Advertising	1,912	2,608	-26.7%
Alternative marketing products and others	697	702	-0.7%
Operating expenses (a)	6,475	7,440	-13.0%
Consolidated EBITDA (b)	9	252	-
EBITDA margin	0.1%	3.3%	- 3,1 p.p.

(a) Operating expenses excluding amortisation

(b) EBITDA = earnings before interest, taxes, amortisation and depreciation

Circulation income recorded a decrease of 12%, reaching approximately 3.9 million Euro; advertising income recorded a decrease of 27%, while alternative marketing products income was practically the same (-0,7%), having reached approximately 0.7 million Euro.

During the third quarter of 2012, Cofina deepened its policy of cost reduction in this segment, so that it could ensure its operational sustainability. As a result of the deepening of this strategy, operational costs were reduced by, approximately, 1 million Euro when compared to homologous period.

EBITDA of magazines segment, recorded in the third quarter of 2012, was of 9 thousand Euro.

November 8th, 2012

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS FOR THE PERIODS ENDED 30 SEPTEMBER 2012 AND 31 DECEMBER 2011 (Translation of financial statements originally issued in Portuguese - Note 18)

(Amounts expressed in Euro)

ASSETS	Notes	30.09.2012	31.12.2011
NON CURRENT ASSETS
Tangible assets		8,105,484	9,561,732
Goodwill	5	93,480,145	93,699,609
Intangible assets		355,581	537,120
Investments in associated companies	4	3,411,343	3,438,343
Investments held for sale	4	8,570	8,570
Deferred tax assets	6	6,030,471	7,512,008
Total non current assets		111,391,594	114,757,382
CURRENT ASSETS
Inventories		2,026,322	4,093,352
Customers		8,553,686	9,184,783
State and other public entities		403,673	135,820
Other current debtors		2,126,147	304,429
Other current assets		6,636,882	6,452,603
Investments recorded at fair value through profit and loss		8,583	8,583
Cash and cash equivalents	7	16,485,128	39,167,961
Total current assets		36,240,421	59,347,531
TOTAL ASSETS		147,632,015	174,104,913
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital	15	25,641,459	25,641,459
Share premium account		15,874,835	15,874,835
Legal reserve		5,409,144	5,409,144
Other reserves		(36,807,857)	(40,629,854)
Consolidated net profit/(loss) for the period attributable to the parent		2,222,306	4,812,155
Equity attributable to equity holder of the parent		12,339,887	11,107,739
Non controlling interests		755,315	787,811
TOTAL EQUITY		13,095,202	11,895,550
LIABILITIES
NON CURRENT LIABILITIES
Bank loans	9	13,750,000	-
Pension liabilities		443,646	443,646
Other non current creditors	8	641,607	1,273,064
Provisions		5,083,371	5,860,560
Total non current liabilities		19,918,624	7,577,270
CURRENT LIABILITIES
Bank loans	9	12,651,723	26,964,828
Other loans	9	66,181,880	92,086,702
Derivatives	10	970,045	1,001,831
Suppliers		8,177,122	9,440,522
State and other public entities		2,660,410	4,549,322
Other current creditors	8	8,382,215	8,699,403
Other current liabilities		15,594,794	11,889,485
Total current liabilities		114,618,189	154,632,093
TOTAL LIABILITIES		134,536,813	162,209,363
TOTAL EQUITY AND LIABILITIES		147,632,015	174,104,913

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

The Chartered Accountant The Board of Directors

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

(Translation of financial statements originally issued in Portuguese - Note 18) (Amounts expressed in Euro)

	Notes	30.09.2012	30.09.2011	3rd quarter 2012	3rd quarter 2011
Sales		45,974,943	49,341,968	16,455,593	17,514,791
Services rendered		29,442,310	35,169,850	9,320,853	10,311,287
Other operating income		10,183,976	9,845,124	3,770,491	4,311,667
Cost of sales		(13,618,580)	(14,670,290)	(4,726,270)	(5,324,855)
External supplies and services		(34,831,684)	(35,636,103)	(11,849,603)	(11,905,053)
Payroll expenses		(24,853,498)	(28,406,380)	(8,293,678)	(9,185,768)
Amortisation and depreciation		(2,396,471)	(2,805,944)	(798,296)	(933,395)
Provisions and impairment losses		(630,015)	(840,075)	(140,180)	(237,960)
Other operating expenses		(328,070)	(434,036)	(158,549)	(166,863)
Gains and losses in derivatives	10	(364,175)	(432,370)	(134,407)	(122,701)
Gains and losses in associated companies	11	166,344	122,230	142,634	105,678
Gains and losses in other investments	11	-	1,619,940	-	(803,598)
Financial expenses	11	(3,804,552)	(4,527,726)	(985,783)	(1,778,530)
Financial income	11	940,202	1,028,158	144,972	446,965
Profit / loss before income tax		5,880,730	9,374,346	2,747,777	2,231,665
Income tax	6	(3,633,251)	(3,998,417)	(1,193,568)	(1,264,284)
Net consolidated profit / (loss) for the period		2,247,479	5,375,929	1,554,209	967,381
Attributable to:
Shareholders of the parent company		2,222,306	5,381,480	1,576,252	962,508
Non-controlling interests		25,173	(5,551)	(22,043)	4,873
Earnings per share:
Basic	14	0.02	0.05	0.02	0.01
Diluted	14	0.02	0.05	0.02	0.01

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

The Chartered Accountant The Board of Directors

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

(Translation of financial statements originally issued in Portuguese - Note 18) (Amounts expressed in Euro)

	Att ribu tab le t ity hol der f th nt o e qu s o e p are
	Sha re	Sh miu are pre m	Leg al	Oth er	Ne t		No roll ing ont n c	Tot al
	ital cap	t acc oun	res erv e	res erv es	fit / ( loss ) pro	Tot al	inte ts res	ity equ
Bal f 1 Jan 201 1 anc e a s o uar y	25, 641 ,45 9	15, 874 ,83 5	5,4 09, 144	( 2) 44, 757 ,42	5,0 18, 193	7,1 86, 209	735 ,90 9	7,9 22, 118
Ap iatio f co lida ted sul t fo r 20 10: t re pro pr n o nso ne
nsf Tra er t tain ed nin o re ear gs	-	-	-	5,0 18, 193	( ) 5,0 18, 193	-	-	-
Div ide nds dis trib d ute	-	-	-	( 1,0 25, 658 )	-	( ) 1,0 25, 658	( 88, 500 )	( 1,1 14, 158 )
Ch in r nd ntro lling int sts ang es ese rve s a non -co ere :
Oth han er c ges	-	-	-	( 47, 824 )	-	( 47, 824 )	2,5 02	( 45, 322 )
Tot al c hen sive inc e fo r th erio d om pre om e p	-	-	-	275 ,47 0	5,3 81, 480	5,6 56, 950	( 51) 5,5	5,6 51, 399
Bal f 30 Se mb pte er 2 011 anc e a s o	25, 641 ,45 9	15, 874 ,83 5	5,4 09, 144	( 1) 40, 537 ,24	5,3 81, 480	11, 769 ,67 7	644 ,36 0	12, 414 ,03 7
Bal f 1 Jan 201 2 anc e a s o uar y Ap iatio f co lida ted t re sul t fo r 20 11: pro pr n o nso ne	25, 641 ,45 9	15, 874 ,83 5	5,4 09, 144	( 40, 629 ,85 4)	4,8 12, 155	11, 107 ,73 9	787 ,81 1	11, 895 0 ,55
Tra nsf tain ed nin er t o re ear gs	-	-	-	4,8 12, 155	( ) 4,8 12, 155	-	-	-
Div ide nds dis trib d ute	-	-	-	( 1,0 25, 658 )	-	( 1,0 25, 658 )	( 57, 750 )	( 1,0 83, 408 )
Ch in r nd lling int ntro sts ang es ese rve s a non -co ere :
Oth han er c ges	-	-	-	( 448 )	-	( 448 )	81	( 367 )
Tot al c hen sive inc e fo r th erio d om pre om e p	-	-	-	35, 948	2,2 22, 306	2,2 58, 254	25, 173	2,2 83, 427
Bal f 30 Se ber 20 12 tem anc e a s o mp	25, 641 ,45 9	15, 874 ,83 5	5,4 09, 144	( 36, 807 ,85 7)	2,2 22, 306	12, 339 ,88 7	,31 755 5	13, 095 ,20 2

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

The Chartered Accountant

The Board of Directors

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

(Translation of financial statements originally issued in Portuguese - Note 18) (Amounts expressed in Euro)

		3rd quarter	3rd quarter
30.09.2012	30.09.2011	2012	2011

Profit / (loss) for the period	2,247,479	5,375,929	1,554,209	967,381
Exchange differences arising on translation of foreign operations	86,401	246,593	21,845	212,851
Changes in cash-flows hedges' fair value	(50,453)	28,877	(43,126)	(359,108)
Total comprehensive income for the period	2,283,427	5,651,399	1,532,928	821,124
Attributable to:
Shareholders of the parent company	2,258,254	5,656,950	1,554,971	816,251
Non-controlling interests	25,173	(5,551)	(22,043)	4,873

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

The Chartered Accountant The Board of Directors

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE AND THREE MONTHS PERIODS ENDED 30 SEMPTEMBER 2012 AND 2011 (Translation of financial statements originally issued in Portuguese - Note 18)

(Amounts expressed in Euro)

	Notes	30.09.2012		30.09.2011		3rd quarter		3rd quarter
Operating activities
Cash flow from operating activities (1)			9,708,095		9,467,056		5,811,006		1,881,413
Investment activities
Collections relating to:
Investments	7	-		51,627,640		-		11,994,000
Tangible assets		-		25,884		-		6,350
Interest and similar income		1,192,846		887,947		217,257		382,356
Loans granted		197,400		-		-		-
Dividends		-	1,390,246	1,486,400	54,027,871	-	217,257	-	12,382,706
Payments relating to:
Investments	7	(100,000)		(160,000)		-		-
Tangible assets		(643,279)		(1,157,466)		(68,105)		(561,284)
Intangible assets		(291,101)	(1,034,380)	(397,507)	(1,714,973)	(89,010)	(157,115)	(212,277)	(773,561)
Cash flow from investment activities (2)			355,866		52,312,898		60,142		11,609,145
Financing activities
Collections relating to:
Loans obtained		20,000,000	20,000,000	-	-	-	-	-	-
Payments relating to:
Interest and similar costs		(4,325,918)		(4,375,616)		(1,540,168)		(936,235)
Lease contracts		(956,132)		(1,111,163)		(347,834)		(252,492)
Dividends		(1,025,658)		(1,025,658)		-		-
Loans obtained		(25,763,698)		(53,000,000)		(3,550,303)		(12,500,000)
Supplementary capital		-	(32,071,406)	(3,570)	(59,516,007)	-	(5,438,305)	-	(13,688,727)
Cash flow from financing activities (3)			(12,071,406)		(59,516,007)		(5,438,305)		(13,688,727)
Cash and its equivalents at the beginning of the period	7		12,203,133		3,869,673		9,817,299		6,331,789
Changes in exchange rates			53,986		-		(468)		-
Variation of cash and its equivalents: (1)+(2)+(3)			(2,007,445)		2,263,947		432,843		(198,169)
Cash and its equivalents at the end of the period	7		10,249,674		6,133,620		10,249,674		6,133,620

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

The Chartered Accountant The Board of Directors

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

(Amounts expressed in Euro)

1. INTRODUCTION

Cofina, SGPS, S.A. ("Cofina" or "Company"), an open capital company, with headquarters located at Rua General Norton de Matos, 68, r/c, in Porto, has its shares listed in the NYSE Euronext Lisbon Stock Exchange. Cofina is the Parent company of a group of companies detailed in Note 4, commonly designated as Cofina Group, and its main activity is the management of investments in the media sector (written press). The Company´s shares are valued at the stock market ("NYSE Euronext Lisbon"), and integrate the PSI-20 Index since 24 September 2012.

The Group owns headings of reference in the respective segments, publishing titles like newspapers "Correio da Manhã", "Record", "Jornal de Negócios", "Destak" and "Metro", as well as the magazines "Sábado", "Automotor", "TV Guia", "Flash!" and "GQ", among others.

During the nine month period ended as of 30 September 2012, the Group developed its activity mainly in Portugal, having also some interests in Brazil through the investment in the associated company Destak Brasil and in the subsidiary Adcom Media (Note 4).

Cofina´s consolidated financial statements are expressed in Euro (rounded to the nearest unit). This is the currency used by the Group in its operations and as so, considered the functional currency. Balance sheet captions of the foreign group companies whose functional currency is not the Euro are translated to Euro using the exchange rates in force at the balance sheet date. Income and expenses and cash flows are converted to Euro using the average exchange rate for the period. The exchange rate differences originated are recorded in equity captions.

The accompanying consolidated financial statements have been prepared under the going concern assumption, although the consolidated total equity as of 30 September 2012 is less than half of its share capital. This is due solely to the Group's exposure to ZON Multimédia - Serviços de Telecomunicações e Multimedia, SGPS, SA ("Zon Multimedia") until July 2011, through the holding of 15,190,000 shares, which were fully disposed of during the year ended December 31, 2011.

The Board of Directors believes that the situation of the consolidated total equity of less than half of its share capital will no longer be applicable as a consequence of the results that will be generated by the operations of the Group during the coming years.

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

Annual financial statements were prepared in accordance with the International Financial Reporting Standards ("IFRS"), as adopted by the European Union. The financial statements as of 30 September 2012 were prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting.

The accounting policies adopted in Cofina's consolidated financial statements are consistent with those used in the preparation of the consolidated financial statements for the year ended as of 31 December 2011.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF MISTAKES

During this period there were no changes in accounting policies nor were detected any material errors relating to previous periods.

4. INVESTMENTS

Consolidation perimeter

The companies included in the consolidated financial statements by the full consolidation method, their headquarters, percentage of participation held and activity developed as of 30 September 2012 are as follows:

Designation	Headquarters	Percentage participation held	Activity
Parent Company: Cofina, SGPS, S.A.	Porto		Investment management
Cofina B.V. ("Cofina BV")	Amesterdam (The Netherlands)	100.00%	Investment management
Efe Erre Participações, SGPS, S.A. ("FR")	Ovar	100.00%	Investment management
Cofina Media Group Cofina Media, SGPS, S.A. ("Cofina Media") Presselivre – Imprensa Livre, S.A. ("Presselivre") Edisport – Sociedade de Publicações, S.A.	Lisbon Lisbon Lisbon	100.00% 99.44% 100.00%	Investment management Newspapers and magazine publication Newspapers publication
("Edisport") Edirevistas – Sociedade Editorial, S.A. ("Edirevistas")	Lisbon	99.46%	Magazines publication
Mediafin, SGPS, S.A. ("Mediafin") Metronews – Publicações, S.A. ("Metronews")	Lisbon Carnaxide	100.00% 59.00%	Investment management Newspapers publication
Grafedisport – Impressão e Artes Gráficas, S.A. ("Grafedisport")	Queluz	100.00%	Newspapers print
Web Works – Desenvolvimento de Aplicações· para Internet, S.A. ("Web Works")	Lisbon	51%	Production and creation of websites for online business development
Transjornal – Edição de Publicações, S.A. ("Transjornal")	Lisbon	59%	Newspapers publication
Cofina - Eventos e Comunicação, S.A. ("Cofina Eventos")	Lisbon	70%	Events promotion and organization
Adcom Media – Anúncios e Publicidade, S.A. ("Adcom Media") (a)	São Paulo (Brazil)	80%	Communication and advertising services
(a) During the period of nine months ended September 30, 2012, 14.05% of the effective

participation in Adcom Media was sold: This transaction had no material impact on the Group's consolidated financial statements.

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

The associated companies, their headquarters, percentage of participation held and activity developed as of 30 September 2012 are as follows:

Designation	Headquarters	Percentage Participation held	Activity
		Direct	Indirect
VASP – Sociedade de Transportes e Distribuições, Lda. Destak Brasil – Empreendimentos e Participações,	Lisbon São Paulo	33.33%	-	Publications distribution
S.A.(a)	(Brazil)	23.92%	-	Investment management
Mercados Globais – Publicação de Conteúdos, Lda.	V.N.Gaia	50%	-	Management of services and promotion of a financial forum on the internet

(a) During the period of nine months ended September 30, 2012, 0.04% of the effective participation in Destak Brasil Empreendimentos e Participações, S.A. was sold: This transaction had no material impact on the Group's consolidated financial statements.

The associated company VASP was included in the consolidated financial statements in accordance with the equity method. The other companies are recorded at cost less impairment losses.

Investments in associated companies

The acquisition cost of the associated companies and their book value as of 30 September 2012 are as follows:

Designation	Acquisition cost	Book value	Equity	Net result
VASP – Sociedade de Transportes e Distribuições, Lda.	€ 6,234	€ 3,410,843	€ 10,250,786	€ 499,032
Destak Brasil – Editora, S.A. (a)	-	-	R\$ (2,302,381)	R\$ (1,621,215)
Destak Brasil – Empreendimentos e Participações, S.A.	€ 154,535	500	R\$ (643,917)	R\$ (1,745,632)
Mercados Globais – Publicação de Conteúdos, Lda.	€ 72,000	-	(b)	(b)

(a) – investment held by the subsidiary Destak Brasil – Empreendimentos e Participações, S.A.

(b) – non available financial information.

As of 30 September 2012 and 31 December 2011 the caption "Investments in associated companies" can be detailed as follows:

	30.09.2012	31.12.2011
Financial investment
VASP – Sociedade de Transportes e Distribuições, Lda.	3,410,843	3,244,498
Destak Brasil – Empreendimentos e Participações, S.A.	154,535	299,064
Mercados Globais - Publicação de Conteúdos, Lda.	72,000	72,000
	3,637,378	3,615,562
Accumulated impairment losses on investments in associates	(226,035)	(371,064)
Loans to associated companies Gross amount	-	193,845
	3,411,343	3,438,343

As of 30 September 2012 and 31 December 2011 the Group has available for sale investments corresponding to minority investments, for which the Group has recorded impairment losses in previous periods, showing on those dates a net worth of 8,570 Euros. As of 30 September 2012 and 31 December 2011, the total value of investments for which adjustments of the same value were made amounts to 1,064,044 Euros.

5. GOODWILL

During the nine months period ended as of 30 September 2012 and 2011, the movement in the caption "Goodwill" fully refers to the changes in exchange rates in the nine month period then ended of the computed Goodwill of the subsidiary Adcom Media.

6. INCOME TAXES

Deferred taxes

The movement occurred in deferred tax assets in the nine months period ended as of 30 September 2012 and 2011 was as follows:

	30.09.2012	30.09.2011
Opening balance	7,512,008	8,782,149
Effects in the income statement:
Increase/(Decrease) in tax losses carried forw ard	43,102	(121,166)
Prior year tax correction follow ing changes in tax rules	(1,542,829)	(1,542,829)
Effects in equity:
Fair value of derivate instruments	18,190	(10,412)
Closing balance	6,030,471	7,107,742

Tax expenses

Tax expenses recorded in the income statement for the nine months period ended as of 30 September 2012 and 2011 are detailed as follows:

	30.09.2012	30.09.2011
Current Tax
Income tax for the period	1,704,754	2,207,986
Excess/(Insufficiency) of prior years income tax	(171,230)	126,436
Additional assessment tax	600,000	-
Deferred taxes	1,499,727	1,663,995
	3,633,251	3,998,417

As of 30 September 2012, a dispute with the Portuguese tax authorities ("Direcção Geral de Contribuições e Impostos") was still in progress following a Corporate Income Tax inspection regarding year 2007, with an amount of, approximately, 12 million Euro being challenged by the tax authorities. To meet this contingency, the Group recorded provisions for future taxes in the amount of 4.1 million Euros (3.5 million Euros for the year ended December 31, 2011 and 600,000 Euros for the nine months period ended September 30, 2012) by the corresponding liability caption "Provisions", which corresponds to the best estimate of the Board, supported by legal and tax counsel of the impacts that may arise from the outcome of the processes currently underway.

7. CASH AND CASH EQUIVALENTS

As of 31 December 2011 and as of 30 September 2012 and 2011, the caption "Cash and cash equivalents" can be detailed as follows:

	30.09.2012	31.12.2011	30.09.2011
Cash	82,270	76,977	112,845
Bank deposits repayable on demand	8,050,858	23,720,922	23,462,360
Bank deposits repayable in less than 3 months	8,352,000	15,370,062	14,902,000
Cash and cash equivalents in accordance w ith the balance sheet	16,485,128	39,167,961	38,477,205
Bank overdrafts (Note 9)	(6,235,454)	(26,964,828)	(32,343,585)
	10,249,674	12,203,133	6,133,620

COFINA, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Amounts expressed in Euro)

During the nine months period ended as of 30 September 2012, the payments relating to investments were as follows:

Acquisitions	Transaction amount	Amount paid
Adcom Media – Anúncios e Publicidade S.A. (*)	300,000 300,000	100,000 100,000

During the nine months period ended as of 30 September 2011, the payments/collections relating investments were as follows:

Acquisitions	Transaction amount	Amount paid
Presselivre – Imprensa Livre, S.A. Adcom Media – Anúncios e Publicidade S.A. (*)	60,000 300,000 360,000	60,000 100,000 160,000
Disposals	Transaction amount	Amount received
ZON Multimédia	51,627,640	51,627,640

8. LEASING

As of 30 September 2012 and 31 December 2011, the amounts payable to fixed asset suppliers related to financial lease contracts were classified in the captions "Other non-current creditors" and "Other current creditors" and had the following reimbursement plan:

	30.09.2012	31.12.2011
Year n+1	588,164	838,114
Year n+2	23,815	396,404
Year n+3	10,294	9,889
Year n+4	10,294	9,889
Year n+5 and subsequent years	9,040	18,768
	641,607	1,273,064
Short term	1,066,349	1,195,743
	1,707,956	2,468,807

COFINA, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Amounts expressed in Euro)

9. BANK AND OTHER LOANS

As of 30 September 2012 and 31 December 2011, the caption "Bank loans" was made up as follows:

	30.09.2012
	Book value		Nominal Value
	Current	Non Current	Current	Non Current
Bank overdrafts	6,235,454	-	6,235,454	-
Bank loans	6,416,269	13,750,000	6,250,000	13,750,000
	12,651,723	13,750,000 12,485,454		13,750,000
	Book value		Nominal Value
	Current	Non Current	Current	Non Current
Bank overdrafts	26,964,828	-	26,964,828	-
	26,964,828	-	26,964,828	-

As of 30 September 2012 and 31 December 2011, the caption "Other loans" was made up as follows:

	30.09.2012
	Book value		Nominal Value
	Current	Non Current	Current	Non Current
Bond loans	49,756,075	-	50,000,000	-
Commercial paper	16,425,805	-	16,500,000	-
	66,181,880	-	66,500,000	-

	31.12.2011
	Book value		Nominal Value
	Current	Non Current	Current	Non Current
Bond loans	50,026,158	-	50,000,000	-
Commercial paper	42,060,544	-	42,000,000	-
	92,086,702	-	92,000,000	-

Bond loans

As of 30 September 2012 this caption was made up of a loan called "Bonds Cofina - 2007/2015", whose nominal value amounts to 50 million Euro, issued by Cofina SGPS, SA and which book value, valued in accordance with the effective interest rate method, amounts to 49,756,075 Euros. This loan, according to its terms, matures on September 28, 2015. However, according to the initial agreement, the holders of the bonds may request, in their sole initiative, early repayment, without any penalties, of the bonds they hold. In this sense, although the Board of Directors believes that the holders of these bonds will not request early repayment and, consequently, its term will be as initially targeted contractually (28 September 2015), the Company, in light of the accounting standards and since the ability to request this refund is in exclusive possession of the holder and not the issuer of the bonds, classified this loan as current.

The main features of this loan are as follows:

• Issuer Cofina, SGPS, S.A.;

• Nominal value 50,000,000 Euros;

• Maturity September 28, 2015;

• Interest postponed, corresponding to 6 month Euribor plus a spread of 0.875%

Commercial paper

The liability caption "Commercial paper" relates to a commercial paper program, in the amount of 16,500,000 Euro, with guaranteed subscription by the banks until January 2013, which bears interest at market rates.

Bank loans

The liability caption "Bank loans" corresponds to a loan agreement celebrated in March 2012 which bears interest quarterly at market rates and has its maturity on 15 October 2016.

The reimbursement of the nominal value of the bank loan is as follows:

	30.09.2012
n+1	3,750,000
n+2	4,000,000
n+3	4,750,000
n+4	1,250,000
	13,750,000
Short term	6,250,000
	20,000,000

10. DERIVATIVE FINANCIAL INSTRUMENTS

As of 30 September 2012, this caption is made of interest rate swaps related to the Group's financing loans. As these derivatives fulfill the requirements of IAS 39 – Financial Instruments: Recognition and Measurement in order to be classified as hedging instruments, their fair value has been recorded under the shareholder's funds' caption "Other reserves", net of deferred taxes.

The movement in these derivatives for the nine months period ended as of 30 September 2012 and 2011 can be presented as follows:

			30.09.2012
	"Market-to market"	Accrued interest	"Market-to market" net of accrued interest	Deferred tax assets	Net Value
Opening balance	1,001,831	(104,453)	897,378	237,805	659,573
Increases / (decreases)	(31,786)	N/A	68,643	18,190	50,453
Closing balance	970,045	(4,024)	966,021	255,996	710,025
		30.09.2011
	"Market-to market"	Accrued interest	"Market-to market" net of accrued interest	Deferred tax assets	Net Value
Opening balance	1,129,176	(198,575)	930,601	246,609	683,992
Increases / (decreases)	(235,688)	N/A	(39,289)	(10,412)	(28,877)
Closing balance	893,488	(2,176)	891,312	236,198	655,114

As of 30 September 2012, the Company had contracted interest rate hedging instruments which fair value, calculated by the discounted cash flow method was as follows:

Company	Funding covered	Start date	Maturity	Index	Notional	Fair value of financial instruments
Cofina,SGPS, S.A.	Bond loan	28/09/2010		29/09/2014 Euribor 6M	20,000,000 20,000,000	(970,045) (970,045)

During the nine months period ended as of 30 September 2012 the amount of 364,175 Euro related with accrued interests that results from the difference between the hedged fixed interest rate and the index base engaged was recorded under the caption "Results related with derivative instruments".

COFINA, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Amounts expressed in Euro)

11. FINANCIAL RESULTS

The financial income and expenses for the nine months period ended as of 30 September 2012 and 2011 are made up as follows:

30.09.2012	30.09.2011
3,162,074	3,335,310
339,145	689,708
261,853	426,890
41,480	75,818
3,804,552	4,527,726
940,202	1,028,158
940,202	1,028,158

The caption "Gains and losses in associated companies" as of 30 September 2012 and 2011 is mainly due to the Group's appropriation of its share of the results in associate companies.

The caption "Gains and losses in other investments" as of 30 September 2011 can be detailed as follows:

	30.09.2011
Gains in investments measured at fair value through profit and loss - ZON Multimédia	133.540
Dividends - ZON Multimédia	1.486.400
	1.619.940

The caption "Investments recorded at fair value through profit and loss" refers mainly to the adjustment to fair value of Zon Multimédia – Serviços de Telecomunicações e Multimédia, S.G.P.S., S.A. in accordance with the shares' market value, as well as with the gain that resulted from the disposal of shares that occurred in April and July of 2011.

12. RELATED PARTIES

The main balances with related parties as of 30 September 2012 and 2011 and the main transactions with related entities during the period then ended may be detailed as follows:

	30.09.2012
Transactions	Sales and other income	Services rendered	Acquisition of goods and services
Vasp - Sociedade de Transportes e Distribuições, Lda	49,830,250	-	70,222
Destak Brasil Editora, S.A.	- 49,830,250	2,290,932 2,290,932	- 70,222
Balances	Accounts receivable	Accounts payable	Sales to invoice
Vasp - Sociedade de Transportes e Distribuições, Lda Destak Brasil Editora, S.A.	108,753 833,860	201,775 -	5,709,580 -
Destak Brasil – Empreendimentos e Participações, S.A.	-	671,102	-
	2,442,613	872,877	5,709,580

	30.09.2011
Transactions	Sales and other income	Services rendered	Acquisition of goods and services
Vasp - Sociedade de Transportes e Distribuições, Lda Destak Brasil Editora, S.A.	54,112,463 - 54,112,463	- 1,447,834 1,447,834	69,972 - 69,972
Balances	Accounts receivable	Accounts payable	Sales to invoice
Vasp - Sociedade de Transportes e Distribuições, Lda Destak Brasil Editora, S.A. Destak Brasil – Empreendimentos e Participações, S.A.	90,932 949,340 -	40,193 - 991,803	6,072,084 - -
	1,040,272	1,031,996	6,072,084

Sales and services rendered to associated companies during the nine months period ended as of 30 September 2012 and 2011 relate mainly to sales of publications (newspapers and magazines) and alternative marketing products to VASP (Note 4), which handles the corresponding distribution to the points of sale. These transactions are carried out under the normal activity of the Group.

The services rendered to associated companies during the periods ended September 30, 2012 and 2011 correspond to the sale of advertising of the subsidiary Adcom Media (Note 4).

Related parties

Apart from companies included in the consolidation (Note 4), the parties considered to be related companies as of 30 September 2012, can be presented as follows:

• Altri, SGPS, S.A.
• Alteria, SGPS, S.A.
• Altri Energias Renováveis, SGPS, S.A.
• Altri, Participaciones Y Trading, S.L.
• Altri Sales, S.A.
• Storax Equipements, S.A.
• Caderno Azul, SGPS, S.A.
• Caima Energia Empresa de Gestão e Exploração de Energia, S.A.
• Caima Indústria de Celulose, S.A.
• Caminho Aberto, SGPS, S.A.
• Captaraíz Unipessoal, Lda.

COFINA, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 SEPTEMBER 2012

(Amounts expressed in Euro)

• Celbi Celulose da Beira Industrial, S.A.
• Celbinave Tráfego e Estiva SGPS, Unipessoal, Lda.
• Celtejo Empresa de Celulose do Tejo, S.A.
• Celulose do Caima, SGPS, S.A.
• Cofihold, SGPS, S.A.
• Elege Valor, SGPS, S.A.
• F. Ramada Aços e Indústrias, S.A.
• F. Ramada Investimentos, SGPS, 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.
• Inflora Sociedade de Investimentos Florestais, S.A.
• Invescaima Investimentos e Participações, SGPS, S.A.
• Livre Fluxo, SGPS, S.A.
• Malva Gestão Imobiliária, S.A.
• Pedro Frutícola, Sociedade Frutícola, Lda.
• Prestimo Prestígio Imobiliário, S.A.
• Altri Florestal, S.A.
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A.
• Storax Benelux
• Storax Racking Systems, Ltd.
• Torres da Luz Investimentos imobiliários, S.A.
• Universal Afir Aços, Máquinas e Ferramentas, S.A.
• Valor Autêntico, SGPS, S.A.
• Viveiros do Furadouro Unipessoal, Lda.

Board of Directors

Cofina SGPS, S.A. Board of Directors was composed as follows as of 30 September 2012:

Paulo Jorge dos Santos Fernandes João Manuel Matos Borges de Oliveira Pedro Macedo Pinto de Mendonça Domingos José Vieira de Matos Ana Rebelo de Carvalho Menéres de Mendonça Pedro Miguel Matos Borges de Oliveira

13. RESPONSIBILTIES FOR GUARANTEES PROVIDED

As of 30 September 2012, Cofina had provided guarantees as follows:

• a) Pledge over 88,883,450 shares of Cofina Media, SGPS, S.A. as a guarantee for an authorized overdraft, to a maximum of 8,000,000 Euro, granted by Banco BPI, S.A., which, as of 30 September 2012, was not being used.
• b) Pledge with irrevocable powers of attorney over 88,883,450 shares of Cofina Media, SGPS, S.A. as a guarantee for a Commercial Paper Program structured by Banco BPI, S.A., amounting to 16,500,000 Euro as of 30 September 2012 (Note 9);
• c) Pledge over 14,850 shares of Edisport Sociedade de Publicações, S.A., in favor of Portuguese tax authorities ("Direcção Geral de Contribuições e Impostos"), as a guarantee for the legal process related with the Corporate Income Tax inspection regarding year 2007.

As of 30 September 2012 Cofina Media group companies had assumed responsibilities for guarantees granted amounting to 692,000 Euro, mainly in relation to advertising contests. These companies had also given promissory notes to guarantee credit facilities amounting to 32,500,000 Euro.

14. EARNINGS PER SHARE

Earnings per share for the nine months period ended as of 30 September 2012 and 2011 were determined taking into consideration the following amounts:

	30.09.2012	30.09.2011
Net profit / (loss) considered for the computation of basic and diluted earning	2,222,306	5,381,480
Weighted average number of shares used to compute the basic earnings per share	102,565,836	102,565,836
Earnings per share: Basic Diluted	0.02 0.02	0.05 0.05

15. SHARE CAPITAL

As of 30 September 2012, the Company fully subscribed and paid up capital consisted of 102,565,836 shares with a nominal value of 25 cents of a Euro each. As of that date, Cofina and the group companies did not hold own shares.

16. SEGMENT INFORMATION

According to the source and nature of the income generated by the Group, the following segments were considered:

• Newspapers
• Magazines

Since the Group mainly operates in the domestic market, geographic segments are not presented.

The information for the periods ended as of 30 September 2012 and 2011 is detailed as follows:

30.09.2012	New spapers	Magazines	Eliminations and consolidations adjustments	Total
Net operating income	66,736,544	18,864,685		85,601,229
Operating Cash-flow - EBITDA (a)	12,149,245	(809,863)	-	11,339,382
Operating profit	9,804,569	(861,658)	-	8,942,911
			Eliminations and consolidations
30.09.2011	New spapers	Magazines	adjustments	Total
Net operating income	71,651,056	22,705,886	-	94,356,942
Operating Cash-flow - EBITDA (a)	15,097,079	(727,021)	-	14,370,058
Operating profit	12,474,186	(910,072)	-	11,564,114

(a) - Operating profit + amortisation and depreciation

17. FINANCIAL STATEMENTS APPROVAL

The interim financial statements as of 30 September 2012 were approved by the Board of Directors for issuance on 7 November 2012

18. EXPLANATION ADDED FOR TRANSLATION

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

THE CHARTERED ACCOUNTANT THE BOARD OF DIRECTORS