Soares da Costa I Report & Accounts I First Quarter of 2012 1

FIRST QUARTER OF 2012 CONSOLIDATED RESULTS

(Non audited accounts) (Translated from the Portuguese original)

MANAGEMENT REPORT

HIGHLIGHTS

Turnover of 189.9 million euros, decreasing 5.2%, mainly pressured by the reduction in the domestic construction activity;
9.9 million euros of EBITDA and 4.1 million euros of EBIT, impacted by the compensation associated with the termination of labour contracts (5.1 million euros) and by the change of the accounting model of the Beira Interior motorway concession – Scutvias (8.8 million euros);
Financial results of -14.8 million euros, in line with the -14.3 million euros of the comparable period of the previous year;
Consolidated net income attributable to the Group in the 1st quarter of 2012 of -8.2 million euros.

Consolidated Key Financial Indicators
(million euros)	1Q 2012	1Q 2011	∆
Turnover	189.9	200.4	-5.2%
EBITDA	9.9	24.7	-60.1%
EBITDA margin	5.4%	12.3%	-
EBIT	4.1	16.4	-75.1%
EBIT margin	2.2%	8.2%	-
Financial results	-14.8	-14.3	3.8%
Net income, attributable to the Group	-8.2	1.6	-

ACTIVITY ANALYSIS

Activity in the 1st quarter of 2012 occurred in a domestic and international macroeconomic context not very distinct from the one described in 2011's report and accounts, recently released, and that is characterised by a series of variables with an unfavourable impact in the economic activity, in general, and to the construction sector, in particular. In this context, we highlight the continued decrease of the public and private investment, with reflections, namely in the lack of demand in the domestic construction market and in the financing sources scarcity, with the corresponding aggravation of the conditions for accessing financing.

The role played by the international markets is, therefore, of key importance within the Group's activity, while the domestic market continues to reflect a decreasing trend, not totally compensated, only mitigated, by the significant weight on the ongoing construction of Transmontana motorway.

As key factors of the activity of the Group during the 1st quarter, and with a determinant impact on indicators, we highlight two facts:

(i) In accordance with the strategy plan being implemented in terms of cost rationalisation and adaptation of the structures to the current and expected demand of the markets, the Group has been putting into practise a human resources reduction programme, that implied during the quarter, the recognition of staffs costs, of a non recurrent nature, of 5.1 million euros, essentially from the construction business area;

(ii) With the introduction of the mechanism to collect tolls from the users adopted by the Portuguese State in the sections and sub sections of the Beira Interior motorway concession, and although the negotiations processes related with the necessary changes to the concession contracts are not still totally completed, the accounting method of the concessionaire Scutvias – a jointly controlled company, consolidated by the proportional method – changed, in accordance with the IFRIC 12, now being accounted in accordance with the financial asset model instead of the intangible asset model. This change has significant effect in several consolidated indicators, negatively impacting the operational indicators (turnover, EBITDA and EBIT), but having a positive impact on the financial results, although the net effect, at the net income level, is negative.

These effects are detailed in the following table:

SCUTVIAS
(million euros)	1Q 2012 F	1Q 2012 I	∆
Turnover	2.5	11.2	-8.8
EBITDA	0.5	9.3	-8.8
EBIT	0.5	6.4	-6.0
Financial results	0.6	-3.3	3.8
Earnings Before Taxes	1.0	3.2	-2.1
Net income	0.7	2.3	-1.6

Notes

1Q 2012 F: Values effectively considered in the financial statements (financial asset model) 1Q2012 I: Values (indicative) according to the intangible assets model

TURNOVER

Turnover in the 1st quarter of 2012 reached 189.9 million euros versus 200.4 million euros in the same period of last year, a 5.2% decrease. If the accounting method of the Beira Interior concession continued to be the intangible asset model, the turnover decline would be insignificant (-0.8%). This evolution is determined by, in terms of business areas, the construction area reduction (-5.7%) and, in what concerns geographical markets, by the domestic market decline (- 19.8%). In fact, in the intersection between the construction business area and the domestic market, there was a 16.4 million euros reduction (23.3 million euros in 1st quarter of 2012 versus 39.7 million one year ago), which, by itself, almost explains the decline on the total turnover.

Turnover Breakdown by Business Area

(million euros)	1Q 2012	%	1Q 2011	%	∆
Turnover	189.9	100%	200.4	100%	-5.2%
Construction	179.1	94.3%	181.0	90.3%	-5.7%
Concessions	39.2	20.6%	32.0	16.0%	22.5%
Real Estate	1.2	0.6%	1.5	0.7%	-21.3%
Energia Própria	0.7	0.4%	1.3	0.6%	-44.8%
Holding and Others	3.0	1.6%	3.2	1.6%	-5.1%
Intragroup eliminations	-33,3	-17.5%	-18.6	-9.3%	-

Turnover Breakdown by Geographical Market

Market	1Q2012	%	1Q 2011	%	∆
Portugal	57.4	31.6%	71.5	35.7%	-19.8%
Angola	81.6	43.0%	82.7	41.2%	-1.2%
U.S.	33.1	18.2%	22.4	11.2%	47.4%
Mozambique	15.9	8.8%	20.1	10.0%	-20.6%
Other countries	1.9	1.0%	3.7	1.9%	-49.3%
Total	189.9	100.0	200.4	100.0	-5.2%

The reduction in the domestic market is influenced, in the concession segment, by the already mentioned effect of Scutvias, and if this participated company kept its accounting method, the turnover fall in Portugal would be -7.5%.

Globally, the international markets grew 2.8%, with the United States market registering an expressive growth, but the remaining markets decreasing their level of activity.

PROFITABILITY: EBITDA/EBIT

EBITDA in the 1st quarter of 2012 amounted to 9.9 million euros, a figure substantially below the 24.7 million euros of the 1st quarter of 2011 (-14.8 million euros). Besides the staff costs related with the labour contracts terminations that happened during the 1st quarter of 2012 (-5.1 million euros), also the Scutvias effect penalised this quarter's indicators (-8.8 million euros). Excluding these two effects, in a homogeneous comparable basis, the EBITDA reduction would amount to 0.9 million euros and the margin would have reached 12.0% of the turnover.

Naturally, the EBIT was also impacted by the factors mentioned above.

(million euros)	1Q 2012	%	Margin	1Q 2011	%	Margin
EBITDA	9.9	100%	5.2%	24.7	100%	12.3%
Construction	5.6	57.2%	3.1%	13.2	53.4%	7.3%
Concessions	3.1	31.9%	8.0%	9.3	37.8%	29.1%
Real Estate	1.7	16.7%	-	2.6	10.4%	-
Energia Própria	-0.4	-3.9%	-53.2%	-0.5	-2.0%	-38.6%
Holding and Oth.	-0.2	-2.0%	-	0.1	0.5%	4.2%
Eliminations	-	0.1%	-	-	-0.1%	-
EBIT	4.1	100	2.1%	16.4	100	8.2%
Construction	1.2	30.4%	0.7%	8.9	54.6%	4.9%
Concessions	2.4	59.5%	6.2%	5.9	35.9%	18.3%
Real Estate	1.2	30.6%	-	2.2	13.5%	-
Energia Própria	-0.4	-9.8%	-56.1%	-0.5	-3.2%	-40.0%
Holding and Oth.	-0.4	-10.8%	-	-0.1	-0.6%	-2.8%
Eliminations	-	-	-	-	-0.2%	-

Profitability by Business Area

FINANCIAL RESULTS

The consolidated financial results amounted, in this first quarter of the year, to -14.8 million euros, an order of magnitude close to the observed one year before (-14.3 million).

However, to comprehend this evolution, two opposed effects most be considered:

(i) An increase in the effective financing cost, associated with the aggravation of the general conditions of access to the financial markets;

(ii) A positive effect of 4.2 million euros from the change of the accounting method of Scutvias (-3.6 million euros in the 1st quarter of 2011 and +0.6 million euros in the 1st quarter of 2012).

NET INCOME

Net income attributable to the Group, in the first quarter of the year, reached -8.2 million euros versus 1.6 million euros in the same period of 2011, penalised by the already mentioned facts arising from the adverse context and by those that resulted from the change in the accounting criteria of Scutvias (-1.6 million euros) and with the recognition of non recurrent staff costs (-3.9 million euros impact at the net income level, whose effects are expected to be diluted and partially recovered by the savings attained during the year).

CONSOLIDATED FINANCIAL POSITION (BALANCE SHEET)

In the consolidated financial position statement during the quarter, there was an increase in the non current assets amounting to 35.4 million euros, essentially due to the development of the concessions projects (Transmontana motorway and Estradas do Zambeze). Besides this net increase – in accounts receivable – there was a transfer effect related with the Beira Interior concessions (Scutvias), also reinforcing the accounts receivable and, at the same time, reducing the intangible assets from 255.4 million euros as of December 31, 2011 to 57.2 million euros by the end of March 2012. In the current assets, the most relevant change was the trade customers' favourable behaviour, which declined 36.3 million euros, showing some credit recovery in Angola.

At the liabilities side, there was an increase in the current liabilities of 26.9 million euros, while non current liabilities only rose 9.3 million euros. Shareholders's equity suffered the impact of the net income of the period (-8.2 million euros), as well as the impact from the variation in the derivatives fair value (-2.4 million euros), reducing its global value to 104.6 million euros.

NET DEBT

Remunerated net debt amounted to 874.7 million euros by the end of March 2012, comparing with 863.0 million euros by the end of 2011 (+1.4%).

Net debt evolution

(million euros)	Mar 2012	Dec 2011
Total net debt	874.7	863.0
Recourse	485.6	463.2
Non recourse	389.1	399.8

ORDER BOOK

In the order book we highlight the impact from the write-off the project for the construction of the high speed railway, Poceirão-Caia stretch, from the line between Lisbon and Madrid, as a consequence of the refusal of the concession contract by the audit court, known on March 21, which originated a substantial reduction of the order book in the domestic market.

In Angola, we highlight the adjudication of the design and construction of the permanent residential housing development for Angola LNG employees (phase I) in Soyo, Angola, a work that will be executed in consortium with MSF, having Soares da Costa a 50% participation. This work will be executed in 36 months, and is worth a total of 252 million dollars (189 million euros).

In Brazil, it was adjudicated the execution of line 3 of the cement plant of Cezarina, in consortium with Gutierrez Engenharia, adding 10.4 million euros. to the Group's order book in that market.

In the United States, we highlight the adjudication to Prince of another road work – SR93 I-275 – by the FDOT (Florida Department of Transportation,) in an amount corresponding to 22.3 million euros.

In the international market, we most refer the adjudication to Sociedade de Construções Soares da Costa, SA of a wrok in the Sultanate of Oman, which includes the project's design and construction works of a road infrastructure, including several sections and five interchanges bridges, in the zone between the Muscat international airport and Muscat express road. The work will be jointly executed with a local construction company, having Sociedade de Construções Soares da Costa, SA a 70% participation. This work, worth 48 million euros, will be executed in 654 days, represents the expansion of the company's construction activity to a project in a new market.

On the other hand, in Romania, was adjudicated to the Group a project named "Tecuci Bypass", a public work in the road segment, adjudicated by the CNADNR (Companiei Nationale de Autostrazi si Drumuri Nationale din Romania, the Romanian road authority), with a 18-month execution deadline, being worth 11.2 million euros.

In summary, the order book registered the following evolution:

Order book

Mar 2012	%	Dec 2011	%	∆
1.234.2	100.0%	1.404.6	100.0%	-12.1%
523.1	42.4%	467	33.3%	12.0%
234.3	19.0%	482.6	34.4%	-51.4%
188.7	15.3%	201.7	14.4%	-6.4%
116.5	9.4%	131.6	9.4%	-11.4%
42.0	2.8%	43.4	3.1%	-3.1%
12.3	1.0%	5.4	0.4%	129.7%
11.8	1.0%	-	0.0%	-
105.4	8.5%	73	5.2%	44.5%

Not taking into consideration the effect of the cancellation of the high speed railway project, the order book total amount rose 39 million euros, i.e., +3.3%.

RELEVANT FACTS OCURRING AFTER THE 1ST QUARTER

As communicated as Material Information on May 4, 2012, and in the context of the provisional suspension of the process related with fiscal/ tax facts related with the years 2001 to 2005, the company assumed the responsibility to regularize 8.7 million euros, which will affect, in the 2nd quarter results, the company's shareholders' equity.

STOCK PRICE EVOLUTION

Soares da Costa strock price registered in the 1st quarter of 2012 a negative evolution, decreasing 22%, while the main index's evolution (PSI20) stood almost unchanged compared with year-end 2011. The stock closed the quarter at 0.29 euros per share (0.37 euros by the end of 2011). This negative evolution reflect, on one hand, the materialisation of very negative expectations for the domestic construction market and, on the other hand, the realization of gains after the significant price rise that happened by the end of 2011 (the stock price rose 16% in December).

In spite of the market's liquidity level, in general, and of the Soares da Costa stock, in particular, remaining very reduced compared with their average, the value traded on average in each trading session by Soares da Costa stock improved circa 8% compared with the previous quarter, in line with the liquidity improvement achieved by the PSI 20 index members (+7%). Therefore, the number of Soares da Costa's shares traded by trading session reached 51.9 thousand shares versus 47.9 thousand shares in the 4th quarter of 2011 (although, still, worse than the full-year 2011 average of 82.9 thousand shares).

Key Performance Indicators of Soares da Costas's shares

	1Q 2012	4Q 2011	3Q 2011	2Q 2011	1Q 2011	2011	2010
Price at the beginning of the period (euro)	0.39	0.35	0.41	0.55	0.55	0.54	1.19
Price at the end of the period (euro)	0.29	0.37	0.36	0.42	0.54	0.37	0.54
Maximum price (euro)	0.44	0.38	0.41	0.55	0.59	0.59	1.27
Minimum price (euro)	0.29	0.31	0.27	0.40	0.48	0.27	0.49
Shares traded ('000 shares)	3,372	3,065	4,376	3,986	9,866	21,293	59,101
Total value traded (million euros)	1.2	1.1	1.5	1.9	5.4	9.8	50.8
Shares traded by trading session (average; '000 shares)	52	48	66	63	154	83	229
Value traded by trading session (average; '000 euros)	17.8	16.5	22.2	30.0	84.1	38.1	196.9

Evolution of Soares da Costa's stock price and number of shares traded in the 1st quarter of 2012

Porto, May 24, 2012

The board of directors,

Manuel Roseta Fino, António Manuel Pereira Caldas de Castro Henriques, Pedro Gonçalo de Sotto Mayor de Andrade Santos, Jorge Domingues Grade Mendes, Ana Maria Martins Caetano, António Manuel Formigal de Arriaga, António Pereira da Silva Neves, Carlos Moreira Garcia, José Manuel Baptista Fino, Martim Salema de Sande e Castro Fino

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL POSITION STATEMENT March 31, 2012 and December 31, 2011

			(Euro)
A S S E T S	Notes	31/03/2012	31/12/2011
NON CURRENT
Intangible fixed assets:
Goodwill	11 e 12	86,896,365	86,896,365
Other intangible fixed assets	11 e 12	57,213,843	255,443,363
	10	144,110,208	342,339,728
Tangible fixed assets:
Land and buildings	12	168,072,460	169,262,712
Basic equipment	12	64,234,857	66,447,006
Other tangible fixed assets	12	16,236,380	17,552,831
Fixed assets in progress	12	18,247,982	18,459,450
	10	266,791,680	271,721,999
Investment properties	13	9,840,002	9,907,556
Financial investments:
Financial investments under the equity method	13	11,429,135	11,607,524
Loans to associated companies	13	9,984,092	10,399,882
Other financial investments	13 e 23	12,932,234	12,876,395
	10	34,345,461	34,883,801
Deferred taxes (assets)	10 e 25	42,000,754	40,941,330
Accounts receivable	10 e 15	475,506,571	237,395,050
Total non current assets		972,594,676	937,189,464
CURRENT
Inventories	10, 14 e 23	128,069,219	127,938,135
Accounts receivable:
Trade Debtors	15 e 23	404,362,110	440,708,549
Income tax		3,567,461	1,441,691
Other accounts receivable	15 e 23	65,205,519	61,307,338
	10	473,135,090	503,457,579
Other current assets	10 e 16	113,900,455	109,009,408
Cash, Deposits and Securities	10 e 17	100,270,512	86,098,349
Total current assets		815,375,277	826,503,472
TOTAL ASSETS	10	1,787,969,953	1,763,692,936

SHAREHOLDERS EQUITY AND LIABILITIES Notes 31/03/2012 31/12/2011 SHAREHOLDERS' EQUITY Share capital 18 160,000,000 160,000,000 Own shares 18 (172,526) (172,526) Reserves and retained earnings 18 (51,128,112) (49,820,845) Net income 10 (8,180,449) 2,376,012 Equity attributable to the group 100,518,913 112,382,641 Minorities 4,043,968 4,139,852 TOTAL SHAREHOLDERS EQUITY 104,562,881 116,522,493 LIABILITIES NON CURRENT Provisions 23 879,847 886,200 Loans: Bonds 19 97,604,741 97,604,741 Bank loans 19 545,552,695 538,988,548 Other loans 19 - - 643,157,436 636,593,289 Accounts payable 21 52,362,162 51,310,099 Derivatives 20 56,182,616 53,939,404 Deferred assets (liabilities) 25 27,340,548 27,884,259 Total non current liabilities 779,922,610 770,613,251 CURRENT Loans:

CONSOLIDATED FINANCIAL POSITION STATEMENT March 31, 2012 and December 31, 2011

Loans:
Bank loans	19	305,565,222	269,468,826
Other loans	19	21,584,716	37,850,092
		327,149,938	307,318,918
Accounst payable:
Trade Creditors		225,758,250	227,775,844
Fixed assets suppliers		3,702,131	3,790,535
Advances on sales		66,903,690	75,655,448
Income tax		9,483,483	8,809,377
Other accounts payable	21	65,132,352	56,659,835
		370,979,906	372,691,039
Derivatives	20	12,641,811	12,504,360
Other current liabilities	22	192,712,807	184,042,876
Total current liabilities		903,484,462	876,557,193
TOTAL LIABILITIES	10	1,683,407,072	1,647,170,444

TOTAL SHAREHOLDERS EQUITY + LIABILITIES 1,787,969,953 1,763,692,936

SEPARATE CONSOLIDATED INCOME STATEMENT for the period ended March 31, 2012 and 2011

			(Euro)
INCOME STATEMENT	Notes	31/03/2012	31/03/2011
Turnover	10	189,947,202	200,403,825
Change in production		1,948,710	(4,619,096)
Other operating income		2,312,239	2,412,842
Operating income		194,208,150	198,197,570
Cost of goods sold		(37,416,530)	(42,382,909)
Third party supplies & services		(102,491,121)	(89,478,858)
Staff costs		(40,830,468)	(36,962,229)
Depreciation and imparity losses	10	(5,853,632)	(8,425,867)
Provisions	10	(98,650)	(97,803)
Other operating costs		(3,443,600)	(4,489,512)
Operating costs		(190,134,001)	(181,837,178)
Operating results from continued activities	10	4,074,149	16,360,392
Interest received		9,632,240	3,439,220
Interest paid		(17,214,916)	(13,209,370)
Net financing costs	24	(7,582,677)	(9,770,150)
Gains in associated companies		493	82,022
Losses in associated companies		(27,793)	(39,620)
Gains and losses in associated companies	24	(27,300)	42,402
Income and capital gains in stakes held		198,015	600,442
Other financial income		1,128,567	4,496,367
Other financial costs		(8,533,705)	(9,649,708)
Other financial income & costs	24	(7,207,123)	(4,552,899)
Financial results	10 e 24	(14,817,099)	(14,280,647)
Earnings before taxes		(10,742,949)	2,079,745
Income tax	10 e 25	2,542,267	(584,063)
Net income	10	(8,200,682)	1,495,682
Attributable to the Group	10	(8,180,449)	1,597,948
Minorities	10	(20,233)	(102,266)
Earnings per share of continued activities:	26
Basic		(0.051)	0.010
Diluted		(0.051)	0.010
Earnings per share:	26
Basic		(0.051)	0.010
Diluted		(0.051)	0.010

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME for the period ended March 31, 2012 and 2011

			(Euro)
	Notes	31/03/2012	31/03/2011
Consolidated net profit for the period	10	(8,200,682)	1,495,682
Other comprehensive income
Exchange difference stemming from transposition of financial
statements expressed in foreign currencies		(1,633,138)	(3,013,114)
Variation on fair value of derivatives	18	(2,380,663)	14,877,330
Variation on deferred taxes of derivatives	18	618,150	(3,984,602)
Ajustments in investment consolidated by equity method		(3,114)	(271,326)
Other variations		-	(30,543)
Total comprehensive income for the period		(11,599,447)	9,073,427
Attributable:
minorities		(95,884)	(245,613)
to the Group		(11,503,563)	9,319,040

STATEMENT OF CHANGES IN EQUITY for the period ended March 31, 2012 and 2011

		Equity capital	Own shares	Reserves and retained earnings	Reserves for foreign exchange	Coverage derivatives	Other	Own funds attributable to shareholders	Own funds attributable to minorities	(Euro) Total equity
Balance as of 01/Jan/2012 Dividend distribution		160,000,000 -	(172,526) -	(7,751,481) -	(728,190) -	(40,239,801) -	1,274,639 -	112,382,640 -	4,139,852 -	116,522,492 -
Acquisition of own shares	18	-	-	-	-	-	-	-	-	-
Others Integrated consolidated		-	-	(360,164)	-		-	(360,164)	-	(360,164)
earnings	18	-	-	(8,180,449)	(1,557,487)	(1,762,513)	(3,114)	(11,503,563)	(95,884)	(11,599,447)
Balance as of 31/Mar/2012		160,000,000	(172,526)	(16,292,094)	(2,285,677)	(42,002,314)	1,271,525	100,518,913	4,043,968	104,562,881

	Equity capital	Own shares	Reserves and retained earnings	Reserves for foreign exchange	Coverage derivatives	Other	Own funds attributable to shareholders	Own funds attributable to minorities	Total equity

Balance as of 01/Jan/2011	160,000,000	(197,780)	(1,633,280)	(337,995)	(24,644,913)	2,204,380	135,390,411	4,170,912	139,561,324
Dividend distribution	-	-	-	-	-	-	-	-	-
Acquisition of own shares	-	(63,322)	12,272	-	-	-	(51,049)	-	(51,049)
Others	-	-	369,912	(369,912)	-	-	-	-	-
Integrated consolidated earnings	-	-	1,597,948	(2,869,768)	10,892,728	(301,869)	9,319,040	(245,613)	9,073,427
Balance as of 31/Mar/2011	160,000,000	(261,101)	346,852	(3,577,675)	(13,752,185)	1,902,512	144,658,402	3,925,299	148,583,701

CONSOLIDATED CASH FLOWS STATEMENTS for the period ended March 31, 2012 and 2011

(Euro)
--------	--

	31/03/2012		31/03/2011
Operating activities:
Receipts from customers	163,357,782		185,118,947
Payments to suppliers	(133,587,378)		(158,358,484)
Payments to staff	(33,436,838)		(31,186,803)
	(3,666,434)		(4,426,341)
Payments/ receipts of income tax	(184,950)		(131,496)
Other payments/ receipts related with oper.activities	(6,021,379)		(10,109,755)
	(6,206,329)		(10,241,250)
Cash flow from investment activities		(9,872,763)		(14,667,591)
Investment activities:
Receipts from:
Financial investments	397,250		-
Fixed tangible assets	71,766		349,870
Interest and similar income	59,147		46,410
Dividends	66,600	594,763	-	396,280
Payments related with:
Financial investments	196,661		1,674,833
Fixed tangible assets	1,141,205		683,659
Intangible assets	-	1,337,866	41,348	2,399,840
Cash flow from investment activities		(743,103)		(2,003,561)
Financing activities:
Receipts from:
Loans	157,876,032		131,208,691
Capital increases, supplem. payments and issue prem.	10,667		-
Sale of own shares	-		328,356
Interest received	46,936	157,933,634	46,299	131,583,347
Payments related with:
Loans	124,150,148		94,431,657
Amortisations of financial leasing contracts	921,821		2,611,588
Interest paid	6,599,990		5,194,603
Dividends	346,727		56,310
Acquisition of own shares	-	132,018,687	399,682	102,693,841
Cash flow from financing activities		25,914,947		28,889,506
Change in cash and cash equivalents		15,299,081		12,218,354
Effect of foreign exchange differences		(1,126,918)		(2,121,735)
Cash and cash equivalents at the beginning od the period		86,098,349		96,531,607
Cash and cash equivalents at the end of the period		100,270,512		106,628,226

ANNEX TO THE CONSOLIDATED CASH FLOWS STATEMENTS

Acquisitions, subscriptions, capital increases and change in participations

Receipt by cash and equivalents of 75,000 euros referring to the alienation of 25% of the Group's participation in "MY Watt.";
Receipt by cash and equivalents of 69,500 euros concerning the alienation of the Group's participation in "Reflexos Purpura";
Capital injection in the company "Autopistas Del Valle, S.A." of 31,821 euros, by cash and equivalents;
Capital injection in the company "Elos Ligações de Alta Velocidade, S.A." of 163,040 euros, by cash and equivalents.

Breakdown of Cash and equivalents

	31/03/2012	31/12/2011

Cash	851,021	951,975
Bank deposits (i mmedia tly avai lable)	98,857,073	84,832,285
Cash equi val ents	562,419	314,090

Cash and equivalents	100,270,512	86,098,349

Trada ble securities	-	-
Cash and equivalents in Financial Pos. Sta tement	100,270,512	86,098,349

(1) Company held (33.33%) by Clear – Instalações Electromecânicas, S.A..

(2) Additionally, Ciagest, SA has a 1% participation in SDC Imobiliária, Lda.

(3) Additionally, Sociedade de Construções Soares da Costa, SA, Ciagest, SA, Clear, SA and SDC Serviços Técnicos e de Gestão, SA have, each, a 0.01% participation in SCSP – Soares da Costa Serviços Partilhados, SA.

(4) Additionally, Sociedade de Construções Soares da Costa, SA holds a 4% participation in Auto-estradas XXI, S.A. and Operestradas XXI, SA..

(5) Additionally, Sociedade de Construções Soares da Costa, S.A. holds a 0.004% participation in Exproestradas XXI, S.A..

(11) Additionally, Sociedade de Construções Soares da Costa, S.A. Holds a 1% stake in MTA, LDA. and in Carta Angola, LDA.

(6) Additionally, SDC Serviços Técnicos e de Gestão, SA and Hidroequador Santomense hold, each, a 0.002% participation in SDC Hidroenergia, SA..

(7) Additionally, Clear Angola, S.A. holds a 2% participation in Costa Sul, Lda. and in Imosede, Lda.. (8) Company held (16.302%) by Soares da Costa Concessões, SGPS, S.A. and by (0.002%) Sociedade de Construções Soares da Costa, S.A.

(9) Additionally, Intevias – Serviços e Gestão, S.A. holds a 0.002% of Portvias, S.A..

(10) Additionally, Grupo Soares da Costa, SGPS, S.A. holds a 0.5% participation in Indáqua Feira, S.A..

CONSOLIDATED ACCOUNTING POLICIES AND EXPLANATORY NOTES AS OF MARCH 31, 2012

1. INTRODUTORY NOTE

The company currently named GRUPO SOARES DA COSTA, SGPS, SA ("Company") was incorporated on 02 June 1944, under the name "Soares da Costa, Lda.", a limited company that has been changed into a public company by deed of 01 May 1968, also changing its denomination to "Sociedade de Construções Soares da Costa, S.A.".

As of December 30, 2002, after a Group re-organisation process, the company assumed its current name and changed its mission into the "management of shareholdings as an indirect way to develop economic activities".

The current share structure of the "Grupo Soares da Costa" is represented in the annexed diagram.

The full list of the companies included in the Group's consolidation perimeter and the consolidation methods applied are detailed in the following notes.

Figures mentioned in the Notes are in Euros, unless otherwise indicated.

The financial statements were not audited.

2. PRESENTATION BASIS

The interim consolidated financial statements for the three months ended March 31, 2012 were prepared in accordance with the provisions of International Accounting Standard 34 - Interim Financial Reporting.

The consolidated financial statements assume the Company's continuity and were compiled from the accounting records of the companies included in consolidation, which were kept according to the accounting principles accepted in Portugal, and adjusted in the consolidation process to ensure that the consolidated financial statements comply with International Standards on Financial Reporting as adopted in the European Union, in force for the financial year starting at 01 January 2005, from which date the Company began applying IAS/IFRS.

The notes which follow were selected to contribute to understanding the most significant changes of the Group's consolidated financial position and performance against the latest date for annual reporting at December 31, 2011.

3. MAIN ACCOUNTING POLICIES

The accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those used in the preparation of financial statements for the year ended December 31, 2011.

4. ESTIMATES AND ASSUMPTIONS

The interim consolidated financial statements include some figures that were estimated, affecting the amounts reported as assets and liabilities, as well as those reported as income and costs for the period reported. All estimates and assumptions made by the board of directors were based on the best information available at the date the financial statements were approved.

The Company's board of directors believes that the attached financial statements and subsequent notes are a fair representation of the financial information.

5. CONVERSION OF THE FINANCIAL STATEMENTS OF FOREIGN ENTITIES

The rates used to convert the figures of foreign entities (Group companies, jointly controlled companies or associated companies) to Euros were the following:

		Exchange rate	Average	Exchange rate	Average
		as of	exchange rate	as of	exchange rate
		31/Mar/12	1Q 2012	31/Dez/11	1Q 2011
US Dolla r	EUR/USD	1.3356	1.3325	1.2939	1.3911
Mozambi can Metical	EUR/MZN	37.500	36.695	34.665	43.852
S. Tomé & Príncipe Dobra	EUR/STD	24,500	24,500	24,500	24,500
Angol an Kwanza	EUR/AOA	126.76	126.79	122.55	129.46
Roma nian Leu	EUR/ROL	4.3820	4.3575	4.3233	4.1956
Isra elian Shekel	EUR/ILS	4.9570	4.9794	4.9453	5.0184
Bra zil ian Rea l	EUR/BRL	2.4323	2.3363	2.4159	2.2984
UAE Dirhams	EUR/AED	4.9060	4.8938	4.7566	5.1111
Bri tish Pound	EUR/GBP	0.8339	0.8376	0.8353	0.8658
Central Africa n CFA	EUR/CFA	656.14	656.14	656.14	656.14

6. FULLY CONSOLIDATED GROUP COMPANIES

Group companies included in consolidation by the full integration method, their head offices and proportion of share capital held as of March 31, 2012:

Company Head offices		Percentage of capital held
		Directly	Indirectly	Total
Grupo Soares da Costa SGPS, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	Holding	-	-
Soares da Costa Serviços Partilhados, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	100.00%	-	100.00%
Energia Própria
Energia Própria, S.A.	Estrada de Talaíde, lote 27, Talaíde 2785-734 S. Domingos de Rana	57.26%	-	57.26%
Self Energy Uk	Southbank Technopark, 90 London Road, London, SE1 6LN	-	78.10%	78.10%
Ventos do Horizonte, S.A.	Edifício Ninho de Empresas, Edifício Ninho de Empresas, Avenida do Mercado Abastecedor, nº 4, 5400-673 Outeiro Seco – Chaves	-	60.00%	60.00%
Self Energy Engineering & Innovation, S.A.	Rua de Fundões 151 Centro Empresarial e Tecnológico 3700-121 São João da Madeira	-	100.00%	100.00%
Costruction
SDC Construção SGPS, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	100.00%	-	100.00%
Soares da Costa América, Inc.	7270 N.W. 12 TH Street, Suite PH3 - Miami - Florida - 33126 U.S.A.	-	100.00%	100.00%
Porto Construction Group, LLC	7270 N.W. 12 TH Street, Suite #207 - Miami - Florida - 33126 U.S.A.	-	60.00%	60.00%
Soares da Costa Construction Services, LLC	751 Park of Comm. Drive, Suite #108 - Boca Raton - Florida - 33487 U.S.A.	-	80.00%	80.00%
Soares da Costa Contractor, LLC	7270 N.W. 12 TH Street, Suite PH3 - Miami - Florida - 33126 U.S.A.	-	100.00%	100.00%
Soares da Costa Moçambique, SARL	Av. Ho Chi Min nº 1178, Maputo Moçambique	-	80.00%	80.00%
Soares da Costa S. Tomé e Principe - Construções, Lda	S. Tomé e Príncipe	-	100.00%	100.00%
Soares da Costa Construcciones Centro Americanas, S.A.	Cantón Cero Uno - S. José Costa Rica	-	100.00%	100.00%
Carta - Cantinas e Restauração, Lda	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%

Carta - Restauração e Serviços, Lda	Rua Cónego Manuel das Neves, 19 Luanda - Angola	-	100.00%	100.00%
Soc. Construções Soares da Costa, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
CONTACTO - Soc. Construções, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Soares da Costa Brasil - Construções, Lda.	Rua Bandeira Paulista, nº 600, 1º Andar, Conjunto 13, CEP 04532-001, São Paulo, Brasil	-	100.00%	100.00%
Santolina Holding B.V.	De Lairessestraat 154, 1075HL Amsterdam	-	100.00%	100.00%
CERENNA - Cerâmica Nacional de Angola, S.A.	Município da Ingombota, Bairro Ingombota, Rua Cónego Manuel Alves das Neves, Nº 19 - Luanda	-	51.00%	51.00%
Soares da Costa/Contacto - Modernização de Escolas, ACE	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
GEC - Guinea Ecuatorial Construcciones, S.A.	Urbanización Villa Orquídea, vivenda nº 4, Carretera del Aeropuerto, Malabo, Républica de Guinea Ecuatorial	-	51.00%	51.00%
CLEAR - Instalações Electromecânicas, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
CLEAR Angola, S.A.	Rua Cónego Manuel das Neves, 874 Luanda - Angola	-	95.00%	95.00%
Coordenação & Soares da Costa, SGPS, Lda.	Rua Julieta Ferrão, nº 12, 13º Andar, N. Senhora de Fátima - 1000 Lisboa	-	100.00%	100.00%
Prince Contracting, LLC	5411 Willis Road Palmetto, Florida 34221 - USA	-	100.00%	100.00%
Construções Metálicas SOCOMETAL,	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
S.A.
Real Estate
Soares da Costa Imobiliária, SGPS, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	100.00%	-	100.00%
CIAGEST - Imobiliária e Gestão, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Mercados Novos - Imóveis Comerciais, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
SOARTA - Soc Imob. Soares da Costa,	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
S.A. HABITOP - Sociedade Imobiliária, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Soares da costa Imobiliária, Lda	Estrada Farol das Lagostas Município da Sambízanga, C. do N'Golakiluange - Luanda	-	100.00%	100.00%
Cais da Fontinha - Investimentos Imobiliários, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
IMOKANDANDU - Promoção Imobiliária, Lda.	Estrada Farol das Lagostas, Município do Sambízanga, Comuna do N'Gola Kiluange - Angola	-	51.00%	51.00%
NAVEGAIA - Instalações Industriais S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
IMOSEDE, Lda	Rua Conego Manuel das Neves Casa nº 19 - Luanda	-	100.00%	100.00%
Costa Sul Sociedade de Promoção Imobiliária, Lda	Rua Conego Manuel das Neves Casa nº 19 - Luanda	-	100.00%	100.00%
Hotti - Angola Hoteis, S.A.	Município da Ingombota, Bairro Patrice Lumumba, Rua Cônego M. das Neves, nº 190 - Luanda	-	50.60%	50.60%

Concessions

Soares da Costa Concessões, SGPS, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	100.00%	-	100.00%
Soares da Costa Concesiones - Costa Rica, S.A.	100 Est,200 Sul, 50 Oest - H. de La Mujer - San José - Costa Rica	-	100.00%	100.00%
COSTAPARQUES - Estacionamentos, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Soares da Costa Serviços Técnicos e de Gestão, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Infraestructuras Soares da Costa Costa Rica, S.A.	100 Est,200 Sul, 50 Oest - H. de La Mujer - San José - Costa Rica	-	100.00%	100.00%
C.P.E. - Companhia de Parque de estacionamento, S.A.	Rua Julieta Ferrão, nº 12, 14º 1649 Lisboa	-	100.00%	100.00%
Intevias - Serviços e Gestão, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	100.00%	100.00%
Hidroequador Santomense - Exploração de Centrais Hidroeléctricas, Lda.	Av. Repatriamento dos Poveiros, nº 67, Edifício Cecominsa, Póvoa de Varzim	-	75.00%	75.00%
Hidroeléctrica STP, Limitada	Avenida Água Grande, São Tomé - S. Tomé e Príncipe	-	45.00%	45.00%
INR - Investimentos Nacionais Rodoviários, SGPS, S.A.	Rua Julieta Ferrão, nº 12, 14º 1649-039 Lisboa	-	100.00%	100.00%
Soares da Costa Hidroenergia, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	75.00%	75.00%
Soares da Costa Hidroenergia 1T, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	75.05%	75.05%
Soares da Costa Hidroenergia 4T, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	75.05%	75.05%
Soares da Costa Hidroenergia 8C, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	75.05%	75.05%
Soares da Costa Hidroenergia 8T, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	75.05%	75.05%
Soares da Costa Concessions USA, Inc.	7270 NW 12 Street, Suite 860, Miami, Florida 33126 EUA	-	100.00%	100.00%

7. JOINTLY CONTROLLED COMPANIES

Jointly controlled companies included in the consolidation by the proportional method, their registered offices and the proportion of capital held as of March 31, 2012:

		Percentage of capital held
Company	Head offices	Directly	Indirectly	Total
Construção
TRANSMETRO - Construção do Metropolitano do Porto, ACE	Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%
Normetro - Agrupamento do Metropolitano do Porto, ACE	Rua Santos Pousada, 300 - 7º Bonfim Porto	-	17.90%	17.90%
ASSOC - Soares da Costa - Construção do Estádio de Braga, ACE	Av. Imaculada Conceição, 756 - Dume - 4700-034 Braga	-	40.00%	40.00%
Estádio de Coimbra, SC/Abrantina, ACE	Rua Santos Pousada, nº 220 4000-478 Porto	-	60.00%	60.00%
Casais, Eusébios, FDO, J. Gomes, Rodrigues e Névoa - Soares da Costa, Construção do Estádio de Braga - Acab.e Instalações/Infraest.Interiores, ACE	Av. Imaculada Conceição, 756 - Dume - 4700-034 Braga	-	40.00%	40.00%

Três ponto dois - T.G. Const. Civil - Via e Cat Mod. Linha do Norte, ACE	Avª das Forças Armadas, 125 - 2ºC - Lisboa	-	50.00%	50.00%
Somague, Soares da Costa - Agrupamento Construtor do Metro de Superfície, ACE	Rua Engº Ferreira Dias, 164 4100-247 Porto	-	50.00%	50.00%
Remodelação Teatro Circo - S.C., A.B.B., D.S.T., ACE	Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%
GCF - Grupo Construtor da Feira, ACE	Rua do Rego Lameiro, nº 38, Campanhã, 4300-454 Porto	-	28.57%	28.57%
GCVC, ACE	Rua do Rego Lameiro, nº 38, Campanhã, 4300-454 Porto	-	28.57%	28.57%
Mota-Engil, Soares da Costa, MonteAdriano - Matosinhos, ACE	Via Adelino Amaro da Costa nº 315, Lugar da Guarda 4470-557 Moreira da Maia	-	28.57%	28.57%
HidroAlqueva, ACE	Av. Frei Miguel Contreiras, nº 54 7º Andar, Lisboa	-	50.00%	50.00%
Nova Estação, ACE	Av. Frei Miguel Contreiras, nº 54 - 7º Andar, 1749-083 Lisboa	-	25.00%	25.00%
Soares da Costa e Lena, ACE	Rua Julieta Ferrão, 12º e 13º Andar, Nossa Senhora de Fátima, 1649-039 Lisboa	-	50.00%	50.00%
Terceira Onda Planejamento e Desenvolvimento, Ltda.	Av. Ibirapuera, 2.332, Bloco I, 9º andar, sala 01, Ed. Torre Ibirapuera I; Moema, S. Paulo - Brasil	-	50.00%	50.00%
GACE - Gondomar, ACE	Rua Eng. Ferreira Dias, nº 161 - Porto	-	24.00%	24.00%
LGC - Linha de Gondomar, Construtores, ACE	Rua Eng. Ferreira Dias, nº 161 Freguesia de Ramalde - Porto	-	30.00%	30.00%
CAET XXI - Construções, ACE	Rua de Santos Pousada, 220 Bonfim, Porto	-	50.00%	50.00%
Israel Metro Builders - a Registered Partnership	132 Derekh Menakhem begin, Tel-Aviv, Israel	-	30.00%	30.00%
LGV, Engenharia e Construção de Linhas de Alta Velocidade, ACE	Rua Abranches Ferrão, nº 10, 9ºF, 1600-001 Lisboa	-	17.25%	17.25%
SOMAFEL - Engenharia e Obras Ferroviárias, S.A.	Avª da República, 42 - 3º 1069- 207 Lisboa	-	40.00%	40.00%
OFM - Obras Públicas, Ferroviárias e Marítimas, S.A.	Avª Columbano Bordalo Pinheiro, 93-7º - 1000 Lisboa	-	40.00%	40.00%
Somafel e Ferrovias, ACE	Avª Columbano Bordalo Pinheiro, 93-7º - 1000 Lisboa	-	24.00%	24.00%
Somafel - Obras Ferroviárias e Marítimas Ltda.	Rua Major Lopes, nº 800, sala 306, Bairro S.Pedro, Belo Horizonte-Minas Gerais	-	40.00%	40.00%
Real Estate
Talatona Imobiliária, Lda	Rua Cónego Manuel das Neves, 19 Luanda - República de Angola	-	49.00%	49.00%
Concessions
SCUTVIAS - Autoestradas da Beira Interior, S.A.	Praça de Alvalade nº 6 7º Andar Lisboa	-	33.33%	33.33%
OPERESTRADAS XXI, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%
Exproestradas XXI - AE Transmontana, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%
Auto-Estradas XXI - Subconcessionária, S.A.	Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%

Estradas do Zambeze, S.A.	Distrito Urbano 1, Bairro Central, Av. Ho Chi Min nº 1178, 2º andar, Maputo - Moçambique	-	40.00%	40.00%
Operadora das Estradas do Zambeze, S.A.	Distrito Urbano 1, Bairro Central, Av. Ho Chi Min nº 1178, 2º andar, Maputo - Moçambique	-	40.00%	40.00%
MRN - Manutenção de Rodovias Nacionais, S.A.	Av. 12 de Novembro, nº 42, 1º Direito 6005-001 Alcains - Castelo Branco	-	33.33%	33.33%
Portvias - Portagem de Vias, S.A.	Avenida 12 de Novembro, 42, 1º Dto, 6005 001 Alcains - Castelo Branco	-	33.33%	33.33%

As of March 31, 2012 the amounts, weighted for the percentage of joint control, of the current assets, non current assets, current liabilities, non current liabilities, income and expenses related with the jointly controlled companies were as follows:

Company	Assets	Liabilities	Costs	Income	Net income
ASSOC - Soares da Costa - Construção do Estádio de Braga, ACE	73,571	73,571	-	-	-

Auto-estradas XXI - Subconcessionária, S.A.	248,229,893	258,873,773	32,437,818	32,690,508	252,690
CAET XXI - Construções, ACE	58,332,446	49,828,210	29,103,894	29,106,155	2,261
Casais, Eusébios, FDO, J. Gomes, Rodrigues e Névoa - Soares da Costa, ACE	23,178	-	- -	-	-
Estádio de Coimbra, SC/Abrantina, ACE	297,712	297,712		-	-
Estradas do Zambeze, S.A.	17,648,042	16,478,785	4,709,713	5,138,245	428,532
Exproestradas XXI - AE Transmontana, S.A.	5,392,821	5,467,064	200,480	118,583	(81,897)
GACE - Gondomar, ACE	1,437,346	1,437,346	789,209	789,209	-
GCF - Grupo Construtor da Feira, ACE	395,277	395,277	28,064	28,064	-
GCVC, ACE	1,606,381	1,606,381	1,138,435	1,138,435	-
HidroAlqueva, ACE	4,644,084	4,655,947	2,429,984 -	2,429,984	-
Israel Metro Builders - a Registered Partnership	4,272,445	4,272,445		-	-
LGC - Linha de Gondomar, Construtores, ACE	2,220,437	621,071	59,470	63,726	4,257
LGV, Engenharia e Construção de Linhas de Alta Velocidade, ACE	9,896,223	9,676,022	100,136	119,869	19,733
Mota-Engil, Soares da Costa, MonteAdriano - Matosinhos,
ACE	2,366,220	2,366,220	1,604,390	1,604,390	-
MRN - Manutenção de Rodovias Nacionais, S.A.	7,174,577	6,453,551	667,442	1,368,470	701,028
Normetro - Agrupamento do Metropolitano do Porto, ACE	3,470,836	3,452,415	4,648	6,638	1,990
Nova Estação, ACE	1,915,933	1,927,243	11,076	932	(10,144)
OFM - Obras Públicas, Ferroviárias e Marítimas, S.A.	7,192,282	5,652,808	1,259,134	1,065,774	(193,360)
Operadora das Estradas do Zambeze	1,145,712	923,108	190,298	297,930	107,631
Operestradas XXI, S.A.	4,663,324	1,920,931	643,467	1,265,695	622,228
Portvias - Portagem de Vias, S.A.	8,732,115	8,570,904	474,385	510,111	35,726

Remodelação Teatro Circo - S.C., A.B.B., D.S.T., ACE	1,726,619	1,726,619	17	17	-
SCUTVIAS - Autoestradas da Beira Interior, S.A.	243,811,186	219,136,463	5,869,490 -	6,606,278	736,788
Soares da Costa e Lena, ACE	177,955	177,955		-	-
SOMAFEL - Engenharia e Obras Ferroviárias, S.A.	19,113,618	7,757,088	2,213,444	1,523,350	(690,095)
Somafel - Obras Ferroviárias e Marítimas Ltda.	241,038	475,833	37,260	256	(37,004)
			-
Terceira Onda Planejamento e Desenvolvimento, Ltda.	2,731,840	2,421,843		-	-
Somague, Soares da Costa - Agrupamento Construtor do
Metro de Superfície, ACE	309,974	309,974	175	175	-
Talatona Imobiliária, Lda	28,082,175	29,773,150	484,322	477,599	(6,724)
TRANSMETRO - Construção do Metropolitano do Porto, ACE	6,398,287	5,644,874	140,955	142,214	1,260
Três ponto dois - T.G. Const. Civil - Via e Cat Mod. Linha do Norte, ACE	410,428	267,350	6,183	-	(6,183)

At the reporting date there are no contingent commitments or capital commitments related with the jointly controlled companies.

8. COMPANIES INCLUDED IN CONSOLIDATION BY THE EQUITY METHOD

Companies included in consolidation by the equity method, their registered offices and the proportion of capital held as of March 31, 2012:


Company Head offices		Directly	Indirectly	Total
Energia Própria
Self Energy Moçambique, S.A.	Avenida Kenneth Kaunda, nº 403 Maputo – Moçambique	-	45.00%	45.00%
Larvick Reliable, S.L.	Av. Finestrat, S/N, Edificio La Cala, Local 10, 03509 Finestrat	-	49.50%	49.50%
UTE Efacec – Self Energy, Ley 18/1982	Avenida de la Industria 4, Edf. 1, 2-2C 28108 Alcobendas - Madrid	-	50.00%	50.00%
My Watt, Lda	Rua Julieta Ferrão, nº 12, Lisboa	-	25.00%	25.00%
Construction
Grupul Portughez de Constructii S.R.L.	10873 Bucharest - Roménia	-	50.00%	50.00%
CFE Indústria de Condutas, S.A.	Rua Particular Joaquim Silva, 480 Sobrado - Valongo	-	33.33%	33.33%
Constructora San José - Caldera, S.A.	Costa Rica	-	17.00%	17.00%
SDC Emirates Construction, L.L.C.	Abu Dhabi - Emirados Árabes Unidos	-	49.00%	49.00%
MTA - Máquinas e Tractores de Angola, Lda	Rua Cônego Manuel das Neves, casa 19, Bairro Patrice Lumumba - Angola	-	34.00%	34.00%
Alsoma, AEIE	3 Av André Malrau 92300 Levallois Perret	-	18.00%	18.00%
Traversofer Industrie & Services Ferroviaires, SARL	27 Chemin du Reservoir - Hydra - Alger	-	20.00%	20.00%
Concessions
Metropolitan Transportation Solutions, Ltd.	14 Hamelecha Street, Park Afek, Rosh Haya'in Israel	-	20.00%	20.00%
GAYAEXPLOR - Construção e Exploração de Parques de Estacionamento, Lda.	Rua Santos Pousada, nº 220 4000-478 Porto	-	25.00%	25.00%

INDÁQUA - Indústria e Gestão de Águas, S.A.	Rua Antero de Quental, 221-3º Sala 303 - 4455-586 Perafita	-	28.57%	28.57%
INDÁQUA MATOSINHOS - Gestão de Águas de Matosinhos, S.A.	Rua 1º de Maio, nº 273 4451-956 Matosinhos	-	28.14%	28.14%
Indáqua Vila do Conde - Gestão de Águas de Vila do Conde, S.A.	Praça Luís de Camões, 9, 3º 1480-719 Vila do Conde	-	28.00%	28.00%
Indáqua Feira - Indústria de Àguas de Santa Maria da Feira, S.A.	Rua Dr. Elísio de Castro, nº 37 - Santa Maria da Feira	-	27.07%	27.07%

In Constructora San José - Caldera, SA and Alsoma EEIG, the Group considers to have significant influence since they have the power to participate in making financial and operating policies of these companies.

During the quarter ended March 31, 2012, the following changes in the companies included in the consolidation by the equity method:

Alienation of a 50% participation in the company "REFLEXOS PÚRPURA, LDA" by Energia Própria, S.A..
Transfer of 25% of the shares of the company "MY WATT, LDA", a company in which Energia Própria, S.A. now has a 25% participation.

As of March 31, 2012 the total amount of assets, liabilities, revenue and profits of companies included in consolidation by the equity method were as follows:

Company	Assets	Liabilities	Shareholders equity	Costs	Income	Net income
INDÁQUA - Indústria e Gestão de Águas, S.A.	66,508,979	50,457,915	16,051,064	2,929,127	2,832,227	(96,900)
Traversofer Industrie & Services Ferroviaires (a)	25,051	25,075	(24)	76,226	64,252	(11,975)
GAYAEXPLOR - Construção e Exploração de Parques Estacionamento, Lda	266,202	243,938	22,264	60	-	(60)
Alsoma, AEIE (b)	1,841,905	488,842	1,353,063	516,087	768,301	252,214
Grupul Portuguhez de Constructii S.R.L.	3,348,025	3,904,188	(556,163)	6,714	242	(6,471)
MTA - Máquinas e Tractores de Angola, Lda	1,130,417	807,705	322,712	613,933	667,431	53,498
Indáqua Matosinhos, S.A.	61,860,197	62,131,479	(271,282)	8,917,907	8,540,047	(377,860)
Indáqua Vila do Conde, S.A.	47,389,240	45,337,779	2,051,461	5,501,116	5,464,665	(36,451)
Indáqua Feira, S.A.	110,428,283	99,141,700	11,286,582	6,209,584	6,034,927	(174,657)
CFE - Indústria de Condutas, S.A. (a)	614,460	539,082	75,378	600,313	429,214	(171,099)
SDC Emirates, LLC (a) Metropolitan Transportation Solutions, Ltd.	2,036	1,223	813	67,328	242	(67,086)
(c)	46,980,806	46,924,300	56,506	-	-
Construtora - S. José Caldera, S.A.	16,561,855	4,945,272	11,616,583	4,940	4,940	-
Self Energy Moçambique S.A.	2,169,341	2,022,647	146,694	401,614	402,710	1,096
Larvick Reliable, R. L.	56,058	115,870	(59,813)	39,839	800	(39,039)
Ute Efacec/Self Energy, Ley 18/1982	238,098	757,511	(519,414)	324,169	68,609	(255,561)
My Watt, Lda	1,016,134	1,012,180	3,955	529	156	(373)

⁽a) 31-12-2011

(b) 31-03-2011

During the quarter ended March 31, 2012 there was no record of impairment losses on these investments since there is no evidence of its existence.

⁽c) 30-09-2010

9. COMPANIES NOT INCLUDED IN CONSOLIDATION

Companies not included in the consolidation, as they are not material to the reported results, their registered offices and the proportion of capital held as of March 31, 2012:

Head offices	Percentage of capital held
	Directly	Indirectly	Total
Av. Fabril do Norte, 1601 - Matosinhos	-	50.00%	50.00%
Rua Santos Pousada, nº 220 4000-478 Porto	-	25.00%	25.00%
Quinta de Beirolas - Estaleiro Moscavide (Parque Expo) Stª Maria dos Olivais - 2685 Sacavém	-	25.00%	25.00%
Edifício Gil Eanes, Expo 98, lotes 1.13.03 e 1.14.01 - Sta.Maria dos Olivais	-	50.00%	50.00%
Rua Santos Pousada, nº 220 4000-478 Porto	-	23.50%	23.50%
Rua Santos Pousada, nº 220 4000-478 Porto	-	50.00%	50.00%

The companies listed above are complementary group of companies (ACEs) whose projects are virtually complete. The assets, liabilities, expenses revenue and profits of these companies as of March 31, 2012 are as follows:

Company	% Participation	Assets	Liabilities	Shareholders equity	Costs	Income
Construção Estação Trat. Das Águas do Paiva, ACE	50.00%	34,395	34,395	-	-	-
GPCC - Grupo Português de Construção de Infraestruturas de Gás Natural, ACE	25.00%	311,872	312,493	(621)	621	-
GPCIE - Grupo Português de Construção de Infraestruturas da Expo, ACE	25.00%	190,109	188,771	1,338	59	1,397
Grupo Construtor do Edifício Gil Eanes, ACE Molinorte Linha do Norte - Construção Civil,	50.00%	62,724	62,724	-	-	-
ACE (a) Soares da Costa, Engil, ACE - (Hosp. de Tomar)	23.50%	170,786	170,786	-	-	-
(a)	50.00%	111,944	111,944	-	-	-

(a) 31-12-2011

10. INFORMATION BREAKDOWN BY SEGMENT

Based on the consolidated financial information for each business area, shows the following breakdown of the results and segment assets and liabilities as of March 31, 2012:

	Construction	Real Estate	Concessions	Energia	Holding and	Intragroup	Consolidated
				Própria	other	eliminations
Turnover:
External to the Group	150,210,154	110,774	38,833,360	713,228	79,685	-	189,947,202
Intra group	28,893,721	1,059,084	372,485	-	2,967,435	(33,292,725)	-
Total turnover	179,103,875	1,169,858	39,205,846	713,228	3,047,119	(33,292,725)	189,947,202
Operational result by segment	1,237,663	1,245,614	2,423,034	(399,986)	(439,708)	7,533	4,074,149
Unal located costs							-
Operational results (continued activity) Discontinued activi ty net income	1,237,663	1,245,614	2,423,034	(399,986)	(439,708)	7,533	4,074,149
Interest pai d	(8,927,333)	(827,317)	(9,221,809)	(17,272)	(4,591,127)	6,369,942	(17,214,916)
Interest received	4,602,049	40,805	7,999,973	31	3,474,896	(6,485,515)	9,632,240
Net i ncome from associated companies	-	-	(27,699)	400	-	-	(27,300)
Other financial costs/ income	(5,364,578)	(173,754)	(1,803,111)	173,100	3,145,710	(3,184,489)	(7,207,123)
Income tax	2,259,511	(93,824)	(46,281)	57,614	367,244	(1,996)	2,542,267
Regular activity results	(6,192,688)	191,525	(675,895)	(186,113)	1,957,014	(3,294,526)	(8,200,682)
Minorities	85,886	(5,357)	(19,578)	-	-	(81,185)	(20,233)
Net income attributable to the Group	(6,278,574)	196,882	(656,317)	(186,113)	1,957,014	(3,213,341)	(8,180,449)
Other data:
Assets	1,138,282,582	159,581,224	670,722,581	21,035,426	530,467,343	(753,532,430)	1,766,556,725
Financi al invesments	6,449,046	78,984	18,023,534	362,752	-	(3,501,089)	21,413,227
Consolidated total assets							1,787,969,953
Li abilities	976,113,011	81,731,509	753,553,860	17,712,836	315,927,548	(461,631,692)	1,683,407,072
Consolidated total liabilities							1,683,407,072
Depreciati ons	4,549,642	329,080	717,513	20,278	238,704	(1,584)	5,853,632
Other non cash costs
(besides depreciations)	130,492	76,007	1,194	-	-	(109,043)	98,650
Intantigl e and tangible assets
acquisi tions	1,243,681	45,000	249,779	7,064	36,377	-	1,581,901

Intragroup transactions are done at market values. Sales and services breakdown by geographical market:

Turnover by geographical market	31/03/2012	%	31/03/2011	%
Portugal	57,407,709	31.61%	71,547,924	35.70%
Angola	81,649,413	42.99%	82,653,050	41.24%
U.S.A.	33,084,706	18.22%	22,438,891	11.20%
Mozambique	15,942,342	8.78%	20,085,991	10.02%
Other countri es	1,863,032	1.03%	3,677,969	1.84%
Total	189,947,202	100.00%	200,403,825	100.00%

The net assets and investments in tangible assets are distributed across geographical markets as follows:

	Portugal	Angola	U.S.	Mozambique	S.Tomé & Príncipe	Guinea	Romania	Other countries	Total

Net Assets:
- Intangible	135,305,495	-	8,739,491	-	54,187	-	-	11,034	144,110,207
- Fixed Tangible	133,387,417	112,751,602	12,115,569	2,992,614	3,873,105	305,830	271,888	1,093,655	266,791,680
- Inves tment Properties	9,805,407	-	-	34,596	-	-	-	-	9,840,003
- Financial Inves tments	20,855,339	78,983	-	66,012	-	-	-	13,345,127	34,345,461
- Inventories	51,818,244	71,422,008	-	299,192	284,982	-	-	4,244,793	128,069,219
- Accounts Receivable	592,323,988	253,677,908	23,126,710	50,432,638	1,336,770	6,960,759	6,304,280	14,478,608	948,641,662
- Cas h andequivalents	51,482,527	40,484,595	3,224,105	2,751,435	121,206	13,454	1,474,472	718,718	100,270,512
- Deferred ta xes	29,125,072	2,207,303	10,564,540	8,260	-	-	-	95,579	42,000,754
- Other a ss ets	65,262,965	27,435,112	9,708,286	6,435,890	245,348	1,263,236	3,351,751	197,867	113,900,455
Total	1,089,366,454	508,057,511	67,478,701	63,020,636	5,915,598	8,543,280	11,402,392	34,185,382	1,787,969,953
Investments in 2011:
- Intangible and Fixed Tangible Ass ets	903,557	282,487	99,278	238,074	58,504	-	-	-	1,581,901
Total	903,557	282,487	99,278	238,074	58,504	-	-	-	1,581,901

11. INTANGIBLE ASSETS

a) Gross assets

The movements in the gross value of intangible assets were the following:

Intangible assets	Opening Balance	Changes in Perimeter	Increases	Disposals	Exchange Rate Effect	Transfers and write	Closing Balance
Goodwill	86,896,365	-	-	-	-	off's -	86,896,365
Other intangible as sets Total	299,337,643 386,234,008	- -	190,486 190,486	- -	(435) (435)	(231,506,049) (231,506,049)	68,021,645 154,918,010

The balance recorded as "Goodwill" on the date of March 31, 2012 for the following acquisitions that occurred in previous years:

a. Acquisition, by the end of 2010, of 57.26% of the share capital of the subsidiary Energia Própria, SA, originating the accounting of goodwill in the amount of 5,299,282 euros, provisional value, since the Group was still in the process of determining the fair value of assets and liabilities of the company. The goodwill recorded in 2011, suffered a decrease of 259,640 euros, updating the value to 5,039,641 euros;
b. Acquisition, in 2008, of the subsidiary Contacto Sociedade de Construção, S.A., which originated goodwill of 44,134,341 euros. During the first half of 2010 there was an increase in this value, amounting to 88,200 euros, according to the conditions of the contract for the purchase of that company;
c. acquisition, in 2008, 13.33% of the share capital of associated company Autoestradas da Beira interior, S.A., and which resulted in a total effective participation of 33.33% and generated a goodwill amounting to 28,128,844 euros ;
d. Acquisition in the second half of 2007, 75% of the capital of the subsidiary Hidroequador Santomense Exploração de Centrais Hidroeléctricas, Lda. which resulted in a goodwill of 765,846 euros, registered in 2008 but calculated with reference to the date 31 December 2007, as in 2007 the Group was still in the process of determining the fair value of assets and liabilities of that company;
e. Acquisition of subsidiary Prince Contracting, LLC that originated a goodwill amounting to 8,739,491 euros.

The "Other intangible assets" balance concerns mainly to Public Service Concession Agreements (IFRIC12).

The concessionaire Scutvias, SA, in agreement with the IFRIC12, changed the accounting of the concessions of Beira Interior, abandoning the model of intangible assets and now using the financial asset model. This change is caused by the introduction of tolls paid by the users adopted by the State in sections and subsections that are part of the Beira Interior concession, although the negotiation processes related with the necessary amendments to the concession contract are not yet fully completed. The amount recorded in the "Transfers" item is totally related with this amendment.

During the first quarter of 2012 were capitalized financial charges as part of the cost of these assets, valued at 180,919 euros in relation to ongoing projects in the area of hydroelectric concessions.

As of March 31, 2012 there are no contractual commitments to acquire intangible fixed assets and no research and development expenses were registered in the period.

b) Accumulated depreciations

Movements in accumulated depreciations of intangible assets:

Intangible assets	Opening Balance	Changes in Perimeter		Increases Regularization	Exchange Rate Effect	Closing Balance
Other intangible ass ets	43,894,280	-	389,371	(33,475,775)	(72)	10,807,803
Total	43,894,280	-	389,371	(33,475,775)	(72)	10,807,803

The amount recorded in the "Adjustments" under the heading "Other intangible assets" refers to the accounting model for financial asset of the conceiiosn of Beira Interior, Scutvias – Autoestrada da Beira Interior, SA.

In late 2011, the Group, in accordance with IAS 36, impairment testing the goodwill relating to acquisitions of Contacto, through evaluation by an independent body, Prince, based on an independent study, and Energia Própria, Scutvias and Hidroequador Santomense, based on evaluations conducted internally.

Prince

The methodology used was the discounted cash flow (DCF - "Discounted Cash Flows"). The reference value was calculated assuming the continuity of the company and the maintenance of the current organization.

For this purpose we estimated the activity of the company until 2017 and assumed that it will enter a mature stage of business from this year (thus estimating perpetuity according to the Gordon model).

The operating free cash flows have been updated by an annual rate of discount of 10.08% which reflects the weighted average cost of capital (WACC):

(a) Cost of debt capital: 3.71%

(b) Income tax: 35%

(d) Risk premium to the market value of 5%

(e) Beta of assets of 1.56

(f) Leveraged Beta = Hamada formula;

(g) Capital structure target 75%Prince

Energia Própria

The methodology used was the Discounted Cash Flow (DCF - "Discounted Cash Flows"). The reference value was calculated assuming the continuity of the company, the inexistence of future synergies and the maintenance of the current organization.

The estimates were produced assuming a nominal growth rate equivalent to inflation rate of 2%.

The explicit projection period was ten years, i.e. 2012 to 2021. It was considered a residual value that corresponds to the overall value that we consider the stabilization of its profitability, i.e., in this case, after 2021, an amount determined as the current value of a perpetual and was assumed a growth rate long-term cash flows equal to the inflation rate assumed.

The operating free cash flows have been updated by an annual rate of discount of 11.95% which reflects the weighted average cost of capital (WACC):

(a) Cost of debt capital: 7%

(b) Income tax: 26.5%

(d) Premium market risk value of 5.3%

(e) Beta of assets of 1.14

(f) Leveraged Beta = Hamada formula;

(g) Capital structure target 60%

Contacto

The DCF – Discounted Cash Flows method was used.

The reference value was calculated assuming the continuity of the company, the absence of future synergies and maintaining the current organisation structure.

Estimates are at nominal rates, with a growth rate of 2% p.a., equivalent to inflation.

The explicit estimate period was five year, from 2012 to 2016. A residual rate considering a steady state profitability level was used, meaning that after 2015, it was considered the present value of a perpetuity that assumed a long-term growth rate from the cash flow equal to the rate of inflation.

Free operating cash flows were discounted at an annual discount rate of 11.7%, reflecting weighted average cost of capital (WACC):

(a) Cost of debt: 5.5%

(b) Corporate tax rate: 26.5%

(d) Market risk premium = 9.13%;

(e) Beta assets = 1.04;

(f) Leveraged Beta = Hamada formula;

(g) Target D/E structure = 19.2%

Scutvias

The DCF – Discounted Cash Flows method was used, in the shareholder's perspective (Free Cash-Flow to Equity).

The reference value was calculated assuming the continuity of the company, the absence of future synergies and maintaining the current organisation structure.

Estimates were based on the financial prospects of the business plan which takes into account the conditions of the respective concession contract.

The discount rate of 10.0% was used based on the following parameters:

(a) Risk-free interest rate 6.10%

(b) Market risk premium: 5%

Hidroequador Santomense

Also with reference to Hidroequador Santomense, an internal impairment test has been ran

The assessment methodology used has been Cash-Flow to Equity (shareholder perspective) according to which the company's value is obtained through the update of the cash flows expected by the shareholder, i.e. dividends payment and return of capital such as shareholders advances and loans as well as inherent interest. In the case at hand, the concessions the end of the concessions is known and being those structured in a project finance regime, this has been the method usually used by the market.

The calculation of the financial projections has been based on financial model and resulting financial statements. The free cash flows risk is evaluated through the usage of a discount rate used to update those flows at the moment of the assessment. In order to obtain the discount rate, a risk-free interest rate, a market-risk premium and a country-risk premium have been used. In order to estimate the net cash flow generated, given that the concessions' end is predetermined, financial projections over the concession period have been taken into account.

After running impairment tests, it was concluded that there is no need to make any adjustments to the value obtained.

12. TANGIBLE FIXED ASSETS

a) Gross assets

Movement in gross value of tangible fixed assets:

Fixed Tangible assets	Opening Balance	Changes in Perimeter	Increases	Disposals	Exchange Rate Effect	Transfers and write	Closing Balance
Land and buil di ngs	216,337,731	-	172,716	(57,659)	(198,083)	off's 657,670	216,912,375
Ba sic Equipment	148,058,221	-	753,835	(597,684)	(567,141)	68,884	147,716,114
Other fixed tangible a ssets	57,235,267	-	243,621	(367,990)	(340,861)	(526,366)	56,243,673
Ongoing fixed ta ngible assets 18,459,450		-	221,241	-	(127,188)	(305,521)	18,247,982
Total	440,090,669	-	1,391,414	(1,023,333)	(1,233,273)	(105,333)	439,120,143

During the first quarter of 2012, were capitalized financial charges as part of the cost of these assets, valued at 46,468 euros, which covers essentially the Hidroeléctrica STP,Lda project.

The Group's financial statements as of 31 March 2012, included the amount of 721,178 euros capitalized as part of the net cost of these assets.

As of March 31, 2012 there are no materially relevant contractual commitments for the acquisition of tangible fixed assets.

b) Accumulated depreciations

Movement in accumulated depreciations of tangible fixed assets:

Fixed Tangible assets	Opening Balance	Changes in Perimeter	Increases Regularisation		Exchange Rate Effect	Closing Balance
La nd and buildi ngs	47,075,019	-	1,537,496	255,920	(28,520)	48,839,914
Basic Equipment	81,611,215	-	2,581,428	(498,439)	(212,947)	83,481,257
Other fi xed tangibl e assets Total	39,682,436 168,368,670	- -	1,280,626 5,399,550	(721,185) (963,704)	(234,585) (476,052)	40,007,29 2 172,328,463

Breakdown of the net values of intangible fixed assets and tangible fixed assets by primary reporting segment as of March 31, 2012:

	Construction	Real Estate	Concessions	Energia Própria	Financial stakes	Total
Goodwil l	52,962,032	-	28,894,690	5,039,642	-	86,896,365
Other i ntangible a ssets	19,873	-	56,955,814	238,156	-	57,213,843
Total intangible assets	52,981,905	-	85,850,504	5,277,798	-	144,110,208
Lands and buil dings	78,787,453	74,301,339	14,983,667	-	-	168,072,460
Basi c equipment	62,570,000	103,053	1,318,118	243,686	-	64,234,857
Other fixed tangible a ssets	13,006,909	490,157	612,289	10,132	2,116,893	16,236,380
Fixed ta ngible assets in progress	5,274,735	1,912,158	10,243,735	645,578	171,777	18,247,982
Total fixed tangible assets	159,639,097	76,806,708	27,157,809	899,395	2,288,670	266,791,680

During 2011, the company conducted tests for impairment of the carrying value of certain of its properties, through assessments by independent entities.

No impairment losses (or reversal of losses) were recorded for the tangible fixed assets in the financial year ended March 31, 2012.

13. INVESTMENT PROPERTIES AND FINANCIAL INVESTMENTS

a) Gross assets

Movement in the gross value of investment properties and financial investments:

Investment properties and Financial investments	Opening Balance	Changes in Perimeter	Exchange Rate Effect	Increases	Disposals	Equity Method	Transfers and write	Closing Balance
Inves tment properties	12,564,118	-	(4,750)	-	-	-	-	12,559,368
Financial inves tments:
Equity consolidated financial investments	11,607,524	-	(90,614)	-	(1,402)	(86,373)	-	11,429,135
Loans to associated companies	10,399,882	-	-	-	(252,750)	-	(163,040)	9,984,092
Other financial investments	13,292,979	-	(238,053)	196,661	(432,393)	-	113,040	12,932,234
Total	35,300,385	-	(328,666)	196,661	(686,545)	(86,373)	(50,000)	34,345,461

The amount recorded under "Other financial investments", column "increases", is related with loans granted in the amount of 163,040 euros, to the subsidiary Elos - Ligações de Alta Velocidade, S.A and extraordinary capital increase in the company Autopistas del Valle, amounting to 31,821 euros.

The values shown in column "Disposals", under "Financial investments consolidated by equity method" and "Loans to associated companies" relate to the sale of 50% stake in society Reflexos Púrpura, Lda, and the sale of a 25% participation and transfer of shares in the company My Watt, Lda..

The amount recorded in column "Sales" under the heading "Other financial investments", concerns the sale of shares in Millennium BCP.

b) Accumulated depreciations

Movement in accumulated depreciations of investment properties:

	Opening Balance	Changes in Perimeter		Increases Regularisati ons	Exchange Rate Effect	Closing Balance
Investment properties	2,656,562	-	64,712	-	(1,908)	2,719,366

During the period ended March 31, 2012 were recognized income on investment properties amounting to 19,916 euros.

There were no direct operating expenses during the period of investment property or contractual obligations to purchase, construct or develop investment property or for repair, maintenance or enhancements thereof.

According to external evaluations carried out by a specialist independent and based on generally accepted evaluation criteria for the housing market, the fair value of assets classified as investment properties amounts to approximately 15.99 million euros.

Movement in value adjustments on financial investments is detailed in note 23.

14. BREAKDOWN OF INVENTORIES

Inventories	31/03/2012	31/12/2011
Raw materials and consumables	19,188,946	20,211,598
Goods and work in progress	58,832,578	57,688,187
Finished and intermedi ate goods	39,671,433	39,677,418
Goods	15,419,351	15,362,675
Fair value a djustments	(5,043,088)	(5,001,742)
Total	128,069,219	127,938,135

During the first quarter of 2012 were capitalized financial charges as part of the cost of these assets, amounting to 334,979 euros, which covers the real estate project developed in Angola by the associated company Talatona Imobiliária, Lda. The capitalization rate corresponds to the specific funding for this project at the rate of 19.2%. As of March 31, 2012, in the Group's consolidated financial statements were capitalized, as part of the net cost of these assets, the amount of 6,123,642 euros.

15. BREAKDOWN OF ACCOUNTS RECEIVABLE

Accounts Receivable	31/03/2012	31/12/2011
Customers with retention of gua rantees	28,005,837	27,104,699
Advances to suplli ers	3,230,329	3,496,670
Other a ccounts receivabl e	444,270,406	206,793,681
Accounts receivable - non current	475,506,571	237,395,050
Customers - current accounts	402,261,447	437,572,441
Customers - other receivables	2,098,518	3,133,963
Customers - doubtful accounts	21,073,708	21,194,830
Fair val ue adjustments	(21,071,563)	(21,192,685)
Customers	404,362,110	440,708,549
Subsidiari es	778,925	947,503
Advances to suppli ers/ fixed assets suppli ers	23,505,003	16,382,411
State and other publ ic bodies	10,975,006	11,633,457
Other a ccounts receivabl e	33,025,965	35,538,796
Fair val ue adjustments	(3,079,380)	(3,194,828)
Other accounts receivable - current	65,205,519	61,307,338

The amount registered in the "Other accounts receivable – non current" item refers to the compliance with IFRIC12 (financial asset model) by the jointly controlled entities Auto-Estradas XXI - Subconcessionária, S.A. and Estradas do Zambeze, S.A..

The increase in this caption relates mainly to the accounting model for financial asset of the Beira Interior concession of Scutvias – Autoestrada da Beira Interior, SA amounting to 204,202,097 euros.

The Group's exposure to credit risk results from the accounts receivable related with its activity, being the maximum exposure to the credit risk the nominal value of its accounts receivable.

There is no significant concentration of credit risk as of 31 March 2012.

As of March 31, 2012 and December 31, 2011, the account "State and other public entities" breakdown is the following:

	31/03/2012	31/12/2011
Val ue added tax	10,632,965	11,286,713
Other	342,042	346,744
Total	10,975,006	11,633,457

16. BREAKDOWN OF OTHER CURRENT ASSETS

Other current assets	31/03/2012	31/12/2011
Income accruals	101,839,925	92,690,287
Deferred costs	12,060,530	16,319,121
Total	113,900,455	109,009,408

As of March 31, 2012 and December 31, 2011 these items breakdown is the following:

	31/03/2012	31/12/2011
Accrued income
Non invoiced works done	70,853,609	47,433,293
Compensatory processes in progress	15,040,558	16,032,980
Estima ted revenue by traffi c ra nge	-	13,362,330
Other	15,945,758	15,861,685
	101,839,925	92,690,287
Deferred costs
Construction works' set up costs	6,414,700	10,272,697
Other	5,645,831	6,046,424
	12,060,531	16,319,121

The variation of the heading "Estimated revenue per band" refers to the accounting model for financial asset of the Beira Interior concession of Scutvias – Autoestradas da Beira Interior, SA.

17. BREAKDOWN OF CASH AND EQUIVALENTS

Cash and equivalents	31/03/2012	31/12/2011
Bank deposits	99,419,492	85,146,375
Cash	851,021	951,975
Total	100,270,512	86,098,349

The total account balance as of March 31, 2012 and December 31, 2011 of 22,493,072 euros, in the two periods and in the participation attributable to the Group, are related with non recourse cash and cash equivalents registered as term deposits from the motorway concessionaire Scutvias - Autoestradas da Beira Interior, SA.

The financing and concession agreements of the associated company Scutvias – Autoestradas da Beira Interior, S.A. require the maintenance of deposits equal to 5/3 of the next debt payment.

Therefore, as of 31 December 2011 and 31 December 2010 the reserves of demand deposits or term deposits included in the Consolidated Financial Position amount to these mentioned figures. Thus, as of March 31, 2012 and December 31, 2011, the reserve accounts in the form of deposits included in the consolidated balance sheet amounted to above amounts.

18. COMPOSITION OF SHARE CAPITAL AND RESERVES

Soares da Costa SGPS SA share capital amounts to 160,000,000 Euros, represented by:

a) One hundred and fifty-nine million nine hundred and ninety-four thousand four hundred and eighty-two (159,994,482) ordinary shares;

b) Five thousand five hundred and eighteen (5,518) preferred shares with no voting rights, but with the right to receive a preferred dividend and preferred reimbursement of the respective nominal value if the company declares bankruptcy.

During the quarter ended March 31, 2012, the movements related with own shares were as follows:

	No. of Nominal Discounts and		Amount
	shares	value	premiuns
Opening balance	507,292	507,292	(334,766)	172,526
Acquisi tions	-	-	-	-
Ali enations	-	-	-	-
Closing balance	507,292	507,292	(334,766)	172,526

The currency conversion reserve reflects the exchange rate changes occurred in translating the financial statements of subsidiaries in a currency other than Euro and are not likely to be distributed or be used to absorb losses.

Some of the Group's companies contracted cash flow hedge financial instruments. Verified changes in the fair value of those financial instruments are directly recognised at the "Reserves and retained profits" item. The cumulative effect of these derivatives and the respective deferred tax discriminates as follows:

	Derivatives	Deferred assets	Total
Grupo Soares da Costa, SGPS, S.A	(14,709)	3,677	(11,032)

Sociedade de Construções Soa res da Costa, S.A.	275,340	(79,849)	195,491
Intevi as – Serviços e Gestão, S.A.	(264,689)	66,172	(1 98,517)
C.P.E. – Compa nhia de Pa rques de Esta cionamento, S.A.	(97,541)	24,385	(73,156)
Scutvi as – Autoestradas da Beira Interi or, S.A.	18,831	(5,178)	13,652
Auto-Estradas XXI - Subconcessionária , S.A.	(2,297,894)	608,942	(1,688,952)
Total	(2,380,663)	618,150	(1,762,513)

19. BANK LOANS

As of March 31, 2012, the main bank loans entered into by the Group are as follows:

Holding

Grupo Soares da Costa, SGPS, SA has contracted with a banking syndicate the placement and underwriting of Commercial Paper issues up to a limit of 32,000 thousand euros, under a commercial paper programme contract in place up to 16 June 2015. As of March 31, 2012 this programme was being completely used.
Loan granted by Caixa Central de Crédito Agrícola Mutuo to Grupo Soares da Costa, SGPS, SA, amounting to 2,670 thousand euros, to be repaid in 7 six-monthly instalments ending on June 2015.
Loan granted by Caixa Geral de Depósitos to Grupo Soares da Costa, SGPS, S.A., amounting to 1,250 thousand euros, to be repaid in 5 quarterly instalments ending on March 2013.
Loan granted by Banco Popular Portugal to Grupo Soares da Costa, SGPS, SA, amounting to 5,000 thousand euros, to be repaid in 4 six-monthly instalments ending on June 2014.
Loan granted by Caixa Geral de Depósitos to Grupo Soares da Costa, SGPS, S.A., amounting to 14,000 thousand euros, to be repaid in 8 quarterly instalments ending on October 2013.
Loan granted by Banif - Banco Internacional do Funchal to Grupo Soares da Costa, SGPS, SA currently amounting to 1,839 thousand euros, to be paid back in 10 quarterly instalments ending on April 2014.
Loan granted by Caixa Banco de Investimentos to Grupo Soares da Costa, SGPS, SA currently amounting to 500 thousand euros, to be reimbursed on April 2012.
Bonds issued by Grupo Soares da Costa, SGPS, SA, amounting to 20,000 thousand euros, to be repaid by November 2015.
Bonds issued by Grupo Soares da Costa, SGPS, SA, amounting to 80,000 thousand euros, to be repaid by December 2017.
-Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 325 thousands of euros, to be repaid in quarterly instalments, ending on April 2015.
Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 187.5 thousands of euros, to be paid back in quarterly instalments, ending on November 2012.
Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 116.7 thousands of euros, to be paid back in quarterly instalments, ending on September 2015.
- Loan granted by Banco Santander to Self Energy Engineering & Innovation, S.A., currently amounting to 60 thousands of euros, to be paid back in quarterly instalments, ending on September 2013.

Construction

"Hot money" loan granted by NCG Banco, SA, Portuguese subsidiary, to Sociedade de Construções Soares da Costa, SA currently amounting to 1,235 thousand euros, to be repaid in April 2012.
"Hot money" loan granted by Banco Comercial Português, to Sociedade de Construções Soares da Costa, SA currently amounting to 3,000 thousand euros, to be repaid in April 2012.
"Hot money" loan granted by Banco Comercial Português, to Sociedade de Construções Soares da Costa, SA currently amounting to 1,900 thousand euros, to be repaid in May 2012.
"Hot money" loan granted by Banco Comercial Português, to Sociedade de Construções Soares da Costa, SA currently amounting to 3,058 thousand euros, to be repaid in May 2012.
Loan granted by NCG Banco, SA, branch in Portugal, to Sociedade de Construções Soares da Costa, SA amounting to 1,100 thousand Euros, to be paid back in 2 instalments ending on January 2023.
Loan granted by Banco BPI to Sociedade de Construções Soares da Costa, SA amounting to 355 thousand Euros, to be paid back in 2 quarterly instalments ending on May 2012.
Loan granted by Banco BPI to Sociedade de Construções Soares da Costa, SA amounting to 1,491 thousand Euros, to be paid back in 7 quarterly instalments ending on September 2013.
Loan granted by Banco BPI to Sociedade de Construções Soares da Costa, SA amounting to 422 thousand Euros, to be paid back on February 2013.
Loan granted Banco Português de Negócios to Sociedade de Construções Soares da Costa, SA amounting to 1,689 thousand Euros, to be paid back in 13 quarterly instalments ending on January 2015.
Loan granted by Banco Português de Negócios to Sociedade de Construções Soares da Costa, SA with amounting to 2,717 thousand Euros, to be paid back in 5 quarterly instalments ending on February 2013.
Loan granted by Banco BIC to Sociedade de Construções Soares da Costa, SA amounting to 200 thousand Euros, to be paid back in 3 instalments ending on June 2012.
Loan granted by Banif - Banco Internacional do Funchal to Sociedade de Construções Soares da Costa, SA currently amounting to 3,542 thousand Euros, to be paid back in 13 quarterly instalments ending on February 2015.
Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, SA amounting to 8,750 thousand Euros, to be paid back in 7 quarterly instalments ending on September 2013.
Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, SA amounting to 16,000 thousand Euros, to be paid back in 30 instalments ending on December 2014.
Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, SA amounting to 2,247 thousand Euros, to be paid back in 12 instalments ending on June 2013.
Loan granted by Banco Bilbao Vizcaya Argentaria (Portugal) to Sociedade de Construções Soares da Costa, SA amounting to 6,900 thousand Euros, to be paid back in 12 instalments ending on March 2013.
Loan granted by Barclays Bank to Sociedade de Construções Soares da Costa, SA amounting to 2,040 thousand Euros, to be paid back in 4 instalments ending on July 2012.
Loan granted by Barclays Bank to Sociedade de Construções Soares da Costa, SA amounting to 1,200 thousand Euros, to be paid back in 3 instalments ending on June 2012.
Loan granted by Banco BAI Europa to Sociedade de Construções Soares da Costa, SA amounting to 5,000 thousand dollars, to be paid back on June 2012.
Loan granted by Banco Santander Totta to Sociedade de Construções Soares da Costa, SA amounting to 1,236 thousand Euros, to be paid back in 15 instalments ending on March 2014.
Loan granted by Montepio Geral to Sociedade de Construções Soares da Costa, SA amounting to 3,000 thousand Euros, to be paid back in 30 instalments ending on August 2014.
Loan granted by BRD Groupe Société Generale to Sociedade de Construções Soares da Costa, SA amounting to 755 thousand Rol, to be paid back in 3 quarterly instalments ending on August 2012.
Sociedade de Construções Soares da Costa, S.A. has contracted with Barclays Bank the placement and underwriting of Commercial Paper issues up to a limit of 8,250 thousand Euros, under a commercial paper programme contract in place up to August 2013. As of March 31, 2012 this programme was being completely used.
Sociedade de Construções Soares da Costa, S.A. has contracted with Caixa Central de Crédito Agrícola Mutuo the placement and underwriting of Commercial Paper issues up to a limit of 5,000 thousand Euros, under a commercial paper programme contract in place up to January 2014. As of March 31, 2012 this programme was being completely used.
Sociedade de Construções Soares da Costa, S.A. has contracted with Caixa Geral de Depósitos the placement and underwriting of Commercial Paper issues up to a limit of 15,000 thousand Euros, under a commercial paper programme contract in place up to June 2012. As of March 31, 2012 this programme was being completely used.
Sociedade de Construções Soares da Costa, S.A. has contracted with Banco Comercial Português the placement and underwriting of Commercial Paper issues up to a limit of 4,500 thousand Euros, under a commercial paper programme contract in place up to January 2014. As of March 31, 2012 this programme was being completely used.
Sociedade de Construções Soares da Costa, S.A. has contracted with Banco Comercial Português and Banco Popular Portugal the placement and underwriting of Commercial Paper issues up to a limit of 15,000 thousand Euros, under a commercial paper programme contract in place up to January 2014. As of March 31, 2012 this programme was being completely used.
Loan granted by Banco Africano de Investimento to Sociedade de Construções Soares da Costa, SA amounting to 1,500 thousand dollars, to be paid back in 10 instalments ending on January 2013.
Loan granted by Banco de Fomento de Angola, amounting to 481,557 thousand Kwanzas, to be paid back in 19 instalments ending on October 2013.
Loan granted by Banco BIC, amounting to 251,157 thousand kwanzas, to be paid back in 5 instalments ending on September 2013.
Loan granted by Montepio Geral to Clear Instalações Electromecânicas, SA amounting to 218 thousand euros, to be paid back in 5 instalments ending on March 2013.
Loan granted by Banco BIC to Clear Instalações Electromecânicas, SA amounting to 66,660 thousand euros, to be paid back April 2012.
Loan granted by Montepio Geral to Construções Metálicas Socometal, S.A. amounting to 218 thousand euros, to be paid back in 5 instalments ending March 2013.
Loan granted by Banif Banco Internacional do Funchal to Construções Metálicas Socometal, S.A. amounting to 232 thousand Euros, to be paid back in 11 instalments ending December 2014.
Loan granted by Banif to Soares da Costa America, Inc. amounting to 13,659 thousand dollars, to be paid back in six-monthly instalments ending on September 2013.
Loan granted by Commerce National Bank Finance to Soares da Costa America, Inc. currently amounting to 1,946 thousand dollars, to be paid back on December 2012.
Loan granted by TerraBank to Soares da Costa America, Inc. currently amounting to 1,900 thousand euros, to be paid on April 2012.
Loan granted by M&I Bank to Prince Contracting, LLC amounting to 102 thousand dollars, with a monthly fixed instalment (capital and interests) of 1.1 thousand dollars and a final repayment of 98 thousand dollars on September 2012.

Concessions

Loan granted by Banco BPI to Soares da Costa Concessões, SGPS, SA amounting to 952 thousand euros, to be paid back in 2 instalments ending on December 2012.
Loan granted by Banco Popular Portugal to Soares da Costa Concessões, SGPS, S.A. amounting to 16,968 thousand euros, to be paid back in 50 quarterly instalments ending on May 2024.
Loan granted by Banif Banco de Investimentos to Soares da Costa Concessões, SGPS, SA amounting to 2,380 thousand Euros, to be paid back in 9 instalments ending on June 2016.
Loan granted by Banco BPI to CPE - Companhia de Parques de Estacionamento, SA amounting to 27,941 thousand euros, to be paid back in 34 instalments ending on December 2028.
Loan granted by Banco BPI to CPE - Companhia de Parques de Estacionamento, SA amounting to 1,010 thousand euros, to be paid back in 4 instalments ending on December 2013.
Loan granted by Banco BPI to Intevias - Serviços e Gestão, SA amounting to 62,258 thousand euros, to be paid back in 14 instalments ending on July 2028.
Loan granted by Caixa Banco de Investimentos to Soares da Costa Hidroenergia 1T, Lda. and Soares da Costa Hidroenergia 4T currently amounting to 5,000 thousand euros, to be paid on June 2012.
Loan granted by Banca Comercial e do Banco Europeu de Investimentos to Scutvias – Autoestradas da Beira Interior, S.A., currently and in the percentage of the participation amounting to 9,610,821 euros and 4,179,165 euros, respectively, to be repaid in six-month installements ending on October 2012.
Loan granted by BBU Bank to Soares da Costa Concessions USA, Inc. amounting to 2,000 thousand dollars, to be paid back on April 2012.
Loan granted by Banif Banco de Investimento to SDC Costa Rica, SA amounting to 7,852 thousand dollars, to be paid back on December 2017.

Real Estate

Loan granted by Banco Comercial Portugues to Ciagest – Imobiliária e Gestão, SA amounting to 2,145 thousand Euros, to be paid back in 32 instalments ending on February 2020.
Loan granted by Banco Comercial Português to Ciagest – Imobiliária e Gestão, SA amounting to 11,215 thousand Euros, to be paid back in 36 instalments ending on December 2020.
Loan granted by NCG Banco, SA, branch in Portugal, to Ciagest – Imobiliária e Gestão, SA currently amounting to 3,946 thousand euros, to be paid back in 102 instalments ending on June 2020.
Loan granted by NCG Banco, SA, branch in Portugal to Ciagest – Imobiliária e Gestão, SA currently amounting to 1,167 thousand euros, to be paid back in 17 instalments ending on April 2013.
Loan granted by NCG Banco, SA, branch in Portugal to Cais da Fontinha - Investimentos Imobiliária, S.A. currently amounting to 3,225 thousand euros, to be paid back in June 2013.
Loan granted by Banco Privado Atlântico to Talatona Imobiliária, Lda. amounting to 2,857,083 thousand kwanzas, to be paid back on April 2013.

As of March 31, 2012 "Bank loans" in non current liabilities included the financing loans secured by the associated company Scutvias – Autoestradas da Beira Interior, SA to fund the construction of the motorway, operated under a concession contract, from Banco Europeu de Investimento and the banking syndicate, amounting to 97,553,660 Euros and 70,015,941 Euros, respectively, in the percentage attributable to the Group. The main terms of these loans are:

Credit facility	Interest rate	1st Payment	Last payment
Banki ng syndi cate	Varia ble, indexed to 6-month Euribor	1st half of 2006	1st half of 2019
European Investment Bank	Fi xed rate: 6.43%	2nd half of 2007	1st ha ld of 2024

The jointly controlled company Auto-Estradas XXI - Subconcessionária, S.A., entered into the following financing: long term credit facility, EIB facility with commercial risk and EIB facility with guarantees, under the following terms:

Amount:	Up to EUR 200,000,000
Total Period:	Up to 27 years as of the Financial Close
Use Period:	5 years
Interest Rate:	Euribor plus margin
Margin:	From 2009 until the first semester of 2016: 0,90% p.a. After the first semester of 2016: 0,37% p.a. Note: an additional 0.20% margin over the EIB margins has been considered since that to the financings entered into with EIB on a variable rate, an estimated 0.31% spread over Euribor is chargeable.
Commitment Fee:	0.45% p.a. over the amount not used
Financial operations fee:	0,50% flat
Redemption:	Variable and increasing with mandatory redemption amounts
Hedging:	Interest rates variation risk hedging through a swap contract with differentiated coverage: 100% of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: - From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cash sweep system; - From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweep system;

EIB facility with commercial risk:

EIB's guaranteed facility loan:

Amount:	Up to EUR 89,000,000
Total Period:	Up to 27 years as of the Financial Close
Use Period:	5 years
Interest Rate:	Euribor plus margin
Margin:	0.0% as long as bank guarantees are in force and 0.37% after the release of the bank guarantees granted by commercial banks. Note: the financial system isn't taking into account the release of the bank guarantees
Commitment Fee:	0.20% p.a. over the amount not used
Financial operations fee:	0,20% flat
Redemption:	Variable and increasing with mandatory redemption amounts
Hedging:	Interest rate variation risk hedging through a swap contract with differentiated coverage: 100% of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cash sweep system; • From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweep system;

Long Term Credit Facility:

Amount:	Up to EUR 286,000,000
Total Period:	Up to 27 years as of the Financial Close, that is to say until 10/12/2035
Use Period:	5 years (from 2009 to 2013)
Interest Rate:	Euribor plus margin
	2009 to 2011: 1,60% p.a.
Margin:	2012 to 2015: 1,80% p.a.
Commitment Fee:	50% of the applicable margin over the amount not used
Financial operations fee:	1,40% flat In fiscal terms, the incidence of the fee has been divided between VAT and stamp duty with the 75% and 25% respectively
Agent's Fee:	EUR 100,000 per year, adjusted with inflation
Redemption:	Full cash sweep during 2014 and 2015 and the remaining bullet in 2016.
Hedging:	Interest rate variation risk hedging through a swap contract with differentiated coverage: 100% of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cash sweep system; • From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweep system;

The consortium bid takes into account the renegotiation of the Long Term Credit Facility in 2016 through the issuance of a debenture loan under more advantageous conditions. This refinancing operation is not deemed as the "Sub concession refinancing" provisioned in clause 90 of the Sub concession Contract because it is a part of the Consortium bid, the fulfilment risk is fully undertaken by the Consortium and is included in the Base Case. This way, it is acknowledged that, should favourable impacts result from such operation, those results shall be fully withheld by the Sub concessionary. The financial conditions of the refinancing operation are as follows:

	256,292,632.25
Total Period: Until 20 years

Use Period:	A single use in 2016
Interest Rate:	Euribor plus margin
Margin:	1.50%
Financial operations fee:	0,50% flat
Agent's Fee:	EUR 100,000 per year, adjusted with inflation
Redemption:	42 six-monthly instalments with variable capital as of 30 June 2016
Hedging:	Interest rate variation risk partial hedging through a swap contract with the following coverage levels for the outstanding principal: From 2016 to 2026: 70% of the outstanding principal; • Year 2028: 17% of the outstanding principal; • Year 2029: 7% of the outstanding principal; • Remaining period: 0% coverage, that is to say variable capital regime.

The nominal values of the loans recorded in the Consolidated Financial Position as of March 31, 2012 have the following maturities:

Maturity	Bank loans	Bonds	Other loans	Overdrafts	Other (Factoring)	Total
2012	179,609,695	-	-	17,892,719	21,584,716	219,087,131
2013	181,199,789	-	-	-	-	181,199,789
2014	73,979,705	-	-	-	-	73,979,705
2015	41,591,782	19,573,368	-	-	-	61,165,150
2016	33,894,647	-	-	-	-	33,894,647
2017	117,172,836	78,031,373	-	-	-	195,204,209
after 2017	205,776,743	-	-	-	-	205,776,743
Total	833,225,197	97,604,741	-	17,892,719	21,584,716	970,307,374

The non recourse debt as of March 31, 2012 had the following maturities:

Maturity	Bank loans
2012	14,857,164
2013	14,728,257
2014	32,139,089
2015	32,604,045
2016	27,361,265
2017	113,305,825
after 2017	189,234,986
Total	424,230,631

The Group's loans as of March 31, 2012 had the following interest rates:

Type of Credit facility	Minimum	Maximum

Overdrafts	4.428%	11.189%
Hot Money	7.235%	11.527%
Bank loans	1.620%	10.296%
Bonds	3.665%	3.780%
Commercial paper	4.277%	8.527%

Additionally, specific financing contract in local markets have interest rates between 7.282% and 20.2%.

In general, bank loans pay interest at variable rates hence exposing the Group to the effect of fluctuations in market interest rates.

However, to manage interest rate risk, in particular in the Concessions business area, the Group contracted financial instrument to cover interest rates changes, as summarised in the "Derivatives" note below. Based on the net indebtness level as of March 31, 2012, a variation of one percentage point in the indexing interest rate would have an impact p.a. in terms of financial costs of 5.6 million euros.

20. DERIVATIVES

The Group has contracted the following interest rate coverage:

Grupo Soares da Costa SGPS, S.A.

Type of financial instrument:	Derivative
Description:	Interest rate coverage
Bank:	Banco Popular
Currency:	Euro
Contra ct date:	11/03/2011
Beginning date:	14/06/2011
Maturity date:	16/06/2014
Frequency:	Annual
Swap:	2.64
Amount covered by 31/03/2012:	4.513.000 Euros, redeemable
Reference:	Euribor 12 months

In the Concessions business area, the Group has the following interest rate cover instruments:

Scutvias - Autoestradas da Beira Interior, S.A.

Type of fi nancial instrument:	Derivati ve
Descri ption:	Interest rate coverage, 100% of debt
	to commercial ba nking (to a ll term of the debt)
Banks:	BCP / BPI / BAYERISCHE / CGD
Currency:	Euro
Contract date:	24/09/1999
Beginning date:	01/10/1999
Maturity date:	04/10/2018
Frequency:	Semi annua l
Swap:	7.14
Amount covered by 31/03/2012:	247.035.016 Euros
Reference:	Euribor + 1% duri ng the constructi on phase;
	Euribor + 0.9% during the operation phase.

Intevias - Serviços e Gestão, S.A.

Type of financia l instrument:	Derivative
Descripti on:	Interest rate covera ge
Banks:	BPI
Currency:	Euro
Contract date:	04/12/2008
Begi nning date:	04/12/2008
Maturity da te:	15/07/2023
Frequency:	Annual
Swap:	3.45
Amount covered by 31/12/2011:	57.492.000 Euros, redeemable
Reference:	Euribor 12 months

CPE - Companhia de Parques de Estacionamento, S.A.

Type of financia l instrument:	Deri va tive
Descri ption:	Interest ra te coverage
Banks:	BPI
Currency:	Euro
Contract date:	09/06/2009
Begi nning date:	10/06/2009
Maturity da te:	10/12/2028
Frequency:	Semiannual
Swap:	4.19
Amount covered by 31/03/2012:	19.528.959 Euros, redeemable
Reference:	Euribor 6 months

Auto-estradas XXI - Subconcessionária, S.A.

Type of financial instrument:	Derivative
Description:	Interest rate coverage
Banks:	BBVA, BANESTO, BANCO POPULAR, CAJA
	MADRID, SANTANDER TOTTA, BPI, LA CAIXA
Currency:	Euro
Contract date:	30/01/2009
Beginning date:	03/02/2009
Maturity date:	31/12/2029
Frequency:	Semia nnual
Swap:	4.22
Amount covered by 31/03/2012:	501.337.777 Euros, redeemable
Reference:	Euri bor 6 months

In the Construction business area, and in order to cover exchange rate risk associated with cash flows of a specific project, the Group has signed several currency forward contracts summarised in the table below:

Soc. Construções Soares da Costa, S.A.

Type of financia l instrument:	Deri va tive
Descri ption:	Forward
Bank:	Barclays Bank
Currency:	US dol lar
Contract date:	03/07/2009	18/09/2009
Begi nning date:	03/07/2009	18/09/2009
Maturity da te:	09/07/2012	09/07/2012
Frequency:	Fl exi ble	Flexible
Swap:	1.4455	1.5100
Amount covered by 31/03/2012:		8.150.000 USD 5.000.000 USD
Reference:	EUR/USD exchange rate

As of March 31, 2012, these instruments had been classified as coverage instruments as they met the formal requisites of IAS 39 related to the documentation and effectiveness of the derivative coverage instruments.

The fair value of these financial instruments was set by the respective counterparts which are independent and credible entities by adopting appropriate evaluation models. These were based on the discounted cash flow method using observable market inputs listed in the interbank market.

As of March 31, 2012 and December 31, 2011, the item "Derivatives" has the following breakdown.

Derivatives	31/03/2012	31/12/2011
Grupo Soares da Costa, SGPS, S.A	78,385	63,676
Soci edade de Construções Soa res da Costa, S.A.	915,017	1,190,357
Intevia s – Serviços e Gestão, S.A.	4,526,242	4,261,552
C.P.E. – Companhi a de Parques de Estaciona mento, S.A.	3,407,143	3,309,601
Scutvia s – Autoestradas da Beira Interior, S.A.	13,476,158	13,494,989
Auto-Estradas XXI - Subconcessionária, S.A.	46,421,483	44,123,589
Total	68,824,427	66,443,764

21. BREAKDOWN OF ACCOUNTS PAYABLE

As of March 31, 2012 the item "Accounts payable" breakdown was the following:

Accounts payable	31/03/2012	31/12/2011
Fixed assets suppli ers	1,914,832	2,389,730
Suppli ers with retenti on of gua rantees	15,705,916	15,144,129
Advances from customers	22,785,237	21,670,923
Other	11,956,177	12,105,318
Accounts payable - non current	52,362,162	51,310,099
Associ ated compa nies	9,709	16,867
Other shareholders	32,292	32,823
State a nd other publ ic entiti es (excluding income ta x)	4,610,512	6,611,564
Outros credores	60,479,838	49,998,581
Accounts payable - current	65,132,352	56,659,835

"State and other public bodies" (excluding income tax) account breakdown as of March 31, 2012 and December 31, 2011:

	31/03/2012	31/12/2011
Value added tax	1,816,366	2,369,314
Socia l security's contributi ons	1,422,450	2,456,940
Other	1,371,697	1,785,309
Total	4,610,512	6,611,564

22. BREAKDOWN OF OTHER CURRENT LIABILITIES

Other current liabilities	31/03/2012	31/12/2011
Costs accrual s	143,472,066	126,858,451
Deferred income	49,240,742	57,184,425
Total	192,712,808	184,042,876

As of March 31, 2012 and December 31, 2011 these items breakdown was as follows:

	31/03/2012	31/12/2011
Accrued costs
Invoi ced to be received	100,523,626	97,894,505
Staff costs to pay	10,968,391	9,033,777
Interest to pay	19,175,809	7,943,361
Other	12,804,238	11,986,808
	143,472,064	126,858,452
Deferred income
Works invoiced not executed	48,278,922	48,619,467
Anteci pated rents	328,479	324,107
Other	633,342	8,240,850
	49,240,743	57,184,424

23. BREAKDOWN IN MOVEMENT OF FAIR VALUE ADJUSTMENTS AND PROVISIONS

Movement in fair value adjustments:

Fair Value Adjustments	Notes	Opening Balance	Changes in Perimeter	Increases	Reductions	Closing Balance
Doubtful customers		21,192,685	-	20,439	(141,560)	21,071,563
Customers	15	21,192,685	-	20,439	(141,560)	21,071,563
Other accounts receivable		3,194,828	-	-	(115,448)	3,079,380
Other accounts receivable	15	3,194,828	-	-	(115,448)	3,079,380
Raw materials and consumables		223,733	-	-	(32,025)	191,708
Goods and work in progress		1,983	-	-	(1,983)	-
Finished and intermediate goods		4,035,566	-	-	(652)	4,034,914
Goods		740,460	-	76,007	-	816,467
Inventories	14	5,001,742	-	76,007	(34,660)	5,043,088
Other fi nancial i nvestments		416,584	-	-	(416,584)	-
Financial investments		416,584	-	-	(416,584)	-
Total fair value adjustments		29,805,838	-	96,446	(708,252)	29,194,032

Movement in provisions was as follows:

Provisions	Opening Balance	Changes in Perimeter	Increases	Reductions	Closing Balance
Other provisions for risks and charges	886,200	-	2,205	(8,557)	879,847
Total	886,200	-	2,205	(8,557)	879,847

Its breakdown by nature as of March 31, 2012, was the following:

Opening balance	Increases	Reductions	Closing balance
568,724	-	(1,807)	566,917
205,186	2,205	(6,751)	200,640
112,290	-	-	112,290 879,847
	886,200	2,205	(8,557)

Impairment losses related with accounts receivable are accounted based on an individual risk analysis, considering its nature, the payment delay and the Group's past experience in similar situations.

Details on the fair value adjustments and existing provisions as of March 31, 2012 by primary reporting segment:

Total


191,708
4,034,914
0
816,467
5,043,088

21,071,563
21,071,563

3,079,380
3,079,380
29,194,032
879,847
879,847

24. FINANCIAL RESULTS

Financial results breakdown for the financial years ending on March 31, 2012 and 2011:

Costs and losses		31/03/2012	31/03/2011
Interest paid		17,214,916	13,209,370
Losses in financial investments in associated companies	27,793	39,620
Forei gn exchange losses		3,776,826	5,537,881
Cash discounts granted		1,535	831
Financial appli cati ons adjustments		-	668
Other fi nancial costs and losses		4,755,345	4,110,328
Other financial losses		8,533,705	9,649,708
	(1)	25,776,414	22,898,698

Income and gains		31/03/2012	31/03/2011
Interets received		9,632,240	3,439,220
Gains in financial investments in associated companies		493	82,022
Income and capital gains from participations		198,015	600,442
Forei gn excha nge gains		1,082,898	4,394,729
Cash di scounts obta ined		37,133	67,062
Other financia l income a nd gains		8,537	34,576
Other financial gains		1,128,567	4,496,367
	(2)	10,959,316	8,618,051
Financial results	(2)-(1)	(14,817,099)	(14,280,647)

The item "Interest received" includes the amount of 3,841,235 Euros, in the % of the share attributable to the Group arising from the accounting financial asset model used of the Beira Interior concession of Scutvias - Autoestradas da Beira interior, S.A..

The item "Other financial costs and losses" mainly refers to the cost of banking guarantees, arrangement fees and other expenses and commissions charged by financial institutions.

25. INCOME TAX AND DEFERRED TAXES

The income tax accounted for March 31, 2012 and 2011 breakdown as follows:

Income tax	31/03/2012	31/03/2011
Income tax (current)	(383,107)	1,983,575
Deferred tax	(2,159,160)	(1,399,511)
Total	(2,542,267)	584,063

Deferred taxes assets and liabilities accounted in Consolidated Financial Position Statement were originated by the following situations:

Deferred taxes assets	31/03/2012	31/12/2011
Losses reported	15,357,209	14,775,540
Fixed assets diverge valua tion	5,308,577	5,332,692
Adjustments in i nventori es' value	2,107,308	2,153,923
Financia l investments diverge va luati on	1,736	1,732
Financia l instruments fa ir value	18,276,373	17,658,22 5
Others	949,551	1,019,218
Total	42,000,754	40,941,330
Deferred taxes liabilities	31/03/2012	31/12/2011
Fixed assets diverge valuation	17,365,611	17,585,484
Inventories val ue adjustments	117,079	116,659
Non fiscal accepted's provisions	9,118,519	9,471,354
Capita l gains wi th deferred taxes	410,751	410,751
Other	328,588	300,011
Total	27,340,548	27,884,259

26. EARNINGS PER SHARE

The company's capital consists of 159,994,482 ordinary shares and 5,518 preferred shares without voting rights, with a par value of 1 Euro each.

Holders of preferred shares without voting rights are entitled to a priority dividend on the terms stipulated in 2.7 of the respective issuance prospectus and are listed for trading, at no less than 5% of the respective par value, pursuant to article 341 (2) of the Portuguese Corporate Code.

Earnings per share	31/03/2012	31/03/2011
Conti nued operati ons earnings, net of minori ties	(8,180,449)	1,597,948
Net income attributable to the Group	(8,180,449)	1,597,948
Number of preferred sha res	5,518	5,518
Number of ordinary shares	159,994,482	159,994,482
Total number of shares	507,292	472,941
Wei ghted avera ge number of ordinary shares	159,499,423	159,585,663
Earni ngs a ttri butable to preferred shares	69	69
Continued operations earnings per share
Basic	-0.051	0.010
Di luted	-0.051	0.010
Earnings per share
Basic	-0.051	0.010
Di luted	-0.051	0.010

The company does not have convertible debt instruments, meaning the basic result is the same as the diluted result.

27. GUARANTEES

The detail of bank guarantees and collateral provided by the Group to third parties as of March 31, 2012 are as follows:

	Euro	US dollar	Mozambican metical	S. Tomé dobra	Costa Rican colón	Israelite shekel	Other currencies	Total
Bank gua rantees	455,644,533	7,969,055	4,546,977	-	62,229	393,245	4,170,344	472,786,383
Collatera l	22,001,556	9,359,090	13,680	24,734	-	-	-	31,399,059

28. SUBSEQUENT EVENTS

As a relevant fact occurring after the financial statements reference date and has announced as a material information on May 4, 2012, and in the context of the provisional suspension of a process related which relates to alleged facts of fiscal issues reported to the years 2001 to, the company assumed the responsibility to regularize 8.7 million Euros, that will affect, via results, the Company's shareholders equity.

29. CONTINGENCIES

There were no changes compared to the last published annual financial statements.

30. ACCOUNTS RELEASE'S APPROVAL

At a meeting held on May 24, 2012, the board of directors authorised the release of these consolidated financial statements.

AI assistant

Grupo Media Capital SGPS — Interim / Quarterly Report 2012

1939_10-q_2012-05-28_3122bd0f-b464-4d25-84a7-0d5dad3c34bb.pdf

FIRST QUARTER OF 2012 CONSOLIDATED RESULTS

MANAGEMENT REPORT

HIGHLIGHTS

ACTIVITY ANALYSIS

TURNOVER

PROFITABILITY: EBITDA/EBIT

Profitability by Business Area

FINANCIAL RESULTS

NET INCOME

CONSOLIDATED FINANCIAL POSITION (BALANCE SHEET)

NET DEBT

Net debt evolution

ORDER BOOK

RELEVANT FACTS OCURRING AFTER THE 1ST QUARTER

STOCK PRICE EVOLUTION

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL POSITION STATEMENT March 31, 2012 and December 31, 2011

CONSOLIDATED FINANCIAL POSITION STATEMENT March 31, 2012 and December 31, 2011

SEPARATE CONSOLIDATED INCOME STATEMENT for the period ended March 31, 2012 and 2011

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME for the period ended March 31, 2012 and 2011

STATEMENT OF CHANGES IN EQUITY for the period ended March 31, 2012 and 2011

CONSOLIDATED CASH FLOWS STATEMENTS for the period ended March 31, 2012 and 2011

ANNEX TO THE CONSOLIDATED CASH FLOWS STATEMENTS

Acquisitions, subscriptions, capital increases and change in participations

CONSOLIDATED ACCOUNTING POLICIES AND EXPLANATORY NOTES AS OF MARCH 31, 2012

1. INTRODUTORY NOTE

2. PRESENTATION BASIS

3. MAIN ACCOUNTING POLICIES

4. ESTIMATES AND ASSUMPTIONS

5. CONVERSION OF THE FINANCIAL STATEMENTS OF FOREIGN ENTITIES

6. FULLY CONSOLIDATED GROUP COMPANIES

Concessions

7. JOINTLY CONTROLLED COMPANIES

8. COMPANIES INCLUDED IN CONSOLIDATION BY THE EQUITY METHOD

9. COMPANIES NOT INCLUDED IN CONSOLIDATION

10. INFORMATION BREAKDOWN BY SEGMENT

11. INTANGIBLE ASSETS

a) Gross assets

b) Accumulated depreciations

Prince

Energia Própria

Contacto

Scutvias

Hidroequador Santomense

12. TANGIBLE FIXED ASSETS

a) Gross assets

b) Accumulated depreciations

13. INVESTMENT PROPERTIES AND FINANCIAL INVESTMENTS

a) Gross assets

b) Accumulated depreciations

14. BREAKDOWN OF INVENTORIES

15. BREAKDOWN OF ACCOUNTS RECEIVABLE

16. BREAKDOWN OF OTHER CURRENT ASSETS

17. BREAKDOWN OF CASH AND EQUIVALENTS

18. COMPOSITION OF SHARE CAPITAL AND RESERVES

19. BANK LOANS

Holding

Construction

Concessions

Real Estate

EIB facility with commercial risk:

EIB's guaranteed facility loan:

Long Term Credit Facility:

20. DERIVATIVES

Grupo Soares da Costa SGPS, S.A.

Scutvias - Autoestradas da Beira Interior, S.A.

Intevias - Serviços e Gestão, S.A.

CPE - Companhia de Parques de Estacionamento, S.A.

Auto-estradas XXI - Subconcessionária, S.A.

Soc. Construções Soares da Costa, S.A.

21. BREAKDOWN OF ACCOUNTS PAYABLE

22. BREAKDOWN OF OTHER CURRENT LIABILITIES

23. BREAKDOWN IN MOVEMENT OF FAIR VALUE ADJUSTMENTS AND PROVISIONS

24. FINANCIAL RESULTS

25. INCOME TAX AND DEFERRED TAXES

26. EARNINGS PER SHARE

27. GUARANTEES

Grupo Media Capital SGPS Interim / Quarterly Report 2012