Sonae SGPS

Annual / Quarterly Financial Statement • May 29, 2009

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 31 MARCH 2009 AND 31 DECEMBER 2008

(Amounts expressed in Euros)

ASSETS	31.03.2009	31.12.2008
NON CURRENT ASSETS:
Tangible assets	1 198 421 784	1 202 504 678
Goodwill	104 324 159	103 811 638
Intangible assets	12 187 749	12 490 658
Investment properties	8 079 811	8 114 976
Associated undertakings and non consolidated undertakings	3 100 693	3 075 688
Investment available for sale	394 763	389 763
Deferred tax asset	54 836 965	53 985 797
Other non current assets	2 166 644	1 751 010
Total non current assets	1 383 512 568	1 386 124 208
CURRENT ASSETS:
Inventories	172 524 046	192 882 429
Trade debtors	218 824 451	199 825 603
Other current debtors	12 523 959	15 418 674
State and other public entities	25 466 866	30 835 909
Other current assets	13 957 096	27 529 412
Cash and cash equivalents	24 186 181	65 750 257
Total current assets	467 482 599	532 242 284
TOTAL ASSETS	1 850 995 167	1 918 366 492
SHAREHOLDERS`FUNDS AND LIABILITIES
SHAREHOLDERS`FUNDS: Share capital	700 000 000	700 000 000
Legal reserve	2 399 639	2 399 639
Other reserves and retained earnings	- 248 420 572	- 207 594 636
Accumulated other comprehensive income	- 93 330 459	- 97 704 689
Total	360 648 608	397 100 314
Non-controlling interests TOTAL SHAREHOLDERS`FUNDS	2 586 973 363 235 581	3 072 691 400 173 005
LIABILITIES:
NON CURRENT LIABILITIES:
Long term bank loans - net of short-term portion	286 898 909	268 056 483
Non convertible debentures	302 375 300	302 147 961
Long term Finance Lease Creditors - net of short-term portion	47 300 363	47 949 761
Other loans	119 159 330	148 419 100
Pensions liabilities	25 295 060	25 244 259
Other non current liabilities	121 457 658	118 741 078
Deferred tax liabilities	71 641 570	69 902 362
Provisions	38 488 900	37 498 938
Total non current liabilities	1 012 617 090	1 017 959 942
CURRENT LIABILITIES:
Short term portion of long term bank loans	33 710 096	31 507 509
Short term bank loans	68 401 670	74 070 252
Short term portion of long term non convertible debentures	80 000 000	80 000 000
Short term portion of Finance Lease Creditors	3 257 899	3 535 578
Other loans Trade creditors	301 434 149 025 208	301 760 165 920 462
Taxes and Other Contributions Payable	18 833 530	16 307 234
Other current liabilities	111 054 252	116 981 282
Provisions Total current liabilities	10 558 407 475 142 496	11 609 467 500 233 545
TOTAL EQUITY AND LIABILITIES	1 850 995 167	1 918 366 492

The notes are an integral part of the consolidated financial statements

CONSOLIDATED INCOME STATEMENTS

FOR THE PERIODS ENDED AT 31 MARCH 2009 AND 2008

(Amounts expressed in Euros)

	31.03.2009	31.03.2008
Operating revenues
Sales	344 872 606	495 564 095
Services rendered Other operating revenues	1 352 373 11 309 790	1 948 642 59 645 563
Total operating revenues	357 534 769	557 158 300
Operating costs
Cost of sales	169 384 159	255 631 401
(Increase) / decrease in production	7 291 125	2 757 864
External supplies and services	101 699 095	132 354 794
Staff expenses	67 248 419	72 514 650
Depreciation and amortisation	31 060 077	29 654 236
Provisions and impairment losses	2 987 189	10 414 345
Other operating costs	3 166 621	4 217 436
Total operating costs	382 836 685	507 544 726
Operational profit / (loss)	- 25 301 916	49 613 574
Financial profits	20 434 126	28 490 529
Financial costs	35 418 213	46 921 073
Gains and losses in associated companies	25 005
Gains and losses in investments
Current profit / (loss)	- 40 260 998	31 183 030
Taxation	482 049	14 801 534
Consolidated net profit / (loss) afer taxation	- 40 743 047	16 381 496
	-	-
Profit / (loss) after taxation from descontinued operations
Consolidated net profit / (loss) for the period	- 40 743 047	16 381 496
Attributable to:
Equity holders of Sonae Industria	- 40 260 356	13 034 148
Non-controlling interests	- 482 691	3 347 348
Profit/(Loss) per share
Excluding discontinued operations:
Basic	- 0.2876	0.0931
Diluted	- 0.2876	0.0931
From discontinued operations:
Basic	-	-
Diluted	-	-

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE PERIODS ENDED 31 MARCH 2009 AND 2008

(Amounts expressed in Euros)

	31.03.2009	31.03.2008
Net profit / (loss) for the period (a)	- 40 743 047	16 381 496
Other comprehensive income
Change in currency translation reserve	5 990 014	- 26 579 061
Change in fair value of cash flow hedge derivatives Income tax relating to components of other comprehensive income	- 1 554 436	119 696
Other comprehensive income for the period, net of tax (b)	4 435 578	- 26 459 365
Total comprehensive income for the period (a) + (b)	- 36 307 469	- 10 077 869
Total comprehensive income attributable to:
Equity holders of Sonae Industria	- 35 886 126	- 11 277 647
Non-controlling interests	- 421 343	1 199 778
	(36,307,469)	(10,077,869)

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS` FUNDS AT 31 MARCH 2009 AND 2008

(Amounts expressed in Euros)

Accumulated other comprehensive income

	Not es	Sha api tal re c	al res Leg erv e	Oth er R ese rve s and ula ted ac cum ear nin gs	Cur cy tran ren slat ion	Cas h flo w hed ge der ivat ives	Sub l tota	rs` Tot al s har eho lde fun ds attr ibu tab le t o uity f the ho lde eq rs o Son Ind úst ria ae	No ont roll ing n c inte ts res	Tot al s rs' fun har eho lde ds
Bal t 1 Jan y 2 008 anc e a s a uar Tot al c hen sive inc om pre om e Oth ers		700 00 0 0 00	1 3 40 138	- 60 91 6 3 69 13 034 14 8 - 68 4 4 54	-45 42 9 8 54 -24 43 1 4 91	95 24 4 11 9 6 96	-45 33 4 6 10 -24 31 1 7 95	595 08 9 1 59 - 11 27 7 6 47 - 6 84 454	33 742 41 7 1 1 99 778 - 7 89 3	62 8 8 31 576 - 10 07 7 8 69 - 6 92 347
Bal t 31 Ma rch 20 08 anc e a s a		700 00 0 0 00	1 3 40 138	-48 56 6 6 75	-69 86 1 34 5	21 4 9 40	-69 64 6 4 05	583 12 7 0 58	34 934 30 2	61 8 0 61 360

Accumulated other comprehensive income

	Not es	Sha api tal re c	al res Leg erv e	Oth er R ese rve s and ula ted ac cum ear nin gs	Cur cy tran ren slat ion	Cas h flo w hed ge der ivat ives	Sub tota l	Tot al s har eho lde rs` fun ds ibu tab le t attr o the uity ho lde f eq rs o Son Ind úst ria ae	No roll ing ont n c inte ts res	Tot al s rs' fun har eho lde ds
Bal t 1 Jan y 2 009 anc e a s a uar Acq uisi tion / (D ispo sal) of sub sidi arie s		700 00 0 0 00	2 3 99 639	- 20 7 5 94 636 - 31 1 4 18	-96 63 9 6 19	-1 0 65 070	-97 70 4 6 89	397 10 0 3 14 - 3 11 4 18	3 0 72 691	40 0 1 73 005 - 3 11 4 18
Tot al c hen sive inc om pre om e				-40 26 0 3 56	5 9 28 666	-1 5 54 436	4 3 74 230	- 35 88 6 1 26	- 4 21 343	- 36 30 7 4 69
Oth ers				- 25 4 1 62				- 2 54 162	- 6 4 3 75	- 3 18 537
Bal t 31 Ma rch 20 09 anc e a s a		700 00 0 0 00	2 3 99 639	-24 8 4 20 572	-90 71 0 9 53	-2 6 19 506	-93 33 0 4 59	360 64 8 6 08	2 5 86 973	363 23 5 5 81

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED AT 31 MARCH 2009 AND 2008

(Amounts expressed in Euros)

OPERATING ACTIVITIES	Notes	31.03.2009	31.03.2008
Net cash flow from operating activities (1)		- 5 758 149	- 39 464 414
INVESTMENT ACTIVITIES
Cash receipts arising from:
Investments		151 973	6 577 237
Tangible and intangible assets		504 021	5 268 554
Loans granted		877	917
Investment subventions			170 848
Interest and similar charges		540 064	1 202 851
Others		298 798
		1 495 733	13 220 407
Cash Payments arising from:
Investments		5 000	76 295
Tangible and intangible assets		13 770 014	40 377 469
Loans granted		798	1 993 529
		13 775 812	42 447 293
Net cash used in investment activities (2)		- 12 280 079	- 29 226 886
FINANCING ACTIVITIES
Cash receipts arising from:
Loans obtained		752 806 909	632 384 498
Others		5 616 113	6 533 286
		758 423 022	638 917 784
Cash Payments arising from:
Loans obtained		742 791 938	567 429 609
Interest and similar charges		13 704 186	10 878 711
Finance leases - repayment of principal		920 480	1 045 951
		757 416 604	579 354 271
Net cash used in financing activities (3)		1 006 418	59 563 513
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		- 17 031 810	- 9 127 787
Effect of foreign exchange rate		- 1 002 976	2 801 066
Cash and cash equivalents at the beginning of the period	7	17 388 776	49 154 756
Cash and cash equivalents at the end of the period	7	1 359 942	37 225 903

The notes are an integral part of the consolidated financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2009 (Amounts expressed in euros)

1. INTRODUCTION

SONAE INDÚSTRIA, SGPS, SA has its head-office at Lugar do Espido, Via Norte, Apartado 1096, 4470-909 Maia, Portugal.

The shares of the company are listed on Euronext Lisbon.

2. ACCOUNTING POLICIES

The present set of consolidated financial statement has been prepared on the basis of the accounting policies that were disclosed in the notes to the consolidated financial statements of year 2008.

2.1. Basis of Preparation

These consolidated financial statements were prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting, as changed by IAS 1 – Presentation of Financial Statements, as amended in 2007, and by IFRS 8 – Operating Segments. As such, they do not include all the information which ought to be included in annual consolidated financial statements and therefore should be read in connection with the financial statements of year 2008.

2.2. Translation of financial statements of foreign companies

Exchange rates used on translation of foreign group, jointly controlled and associated companies are listed below:

		31.03.2009			31.12.2008		31.03.2008
	Closing	Average		Closing	Average		Closing	Average
	rate	rate		rate	rate		rate	rate
Great Britain Pound	0.9308	0.9082		0.9525	0.7943		0.7958	0.7568
Brazilian Real	3.0767	3.0155		3.2436	2.6555		2.7554	2.6000
South African Rand	12.6135	12.9702		13.0668	11.9933		12.8123	11.2108
Canadian Dollar	1.6685	1.6217		1.6998	1.5574		1.6226	1.5008
American Dollar	1.3308	1.3020		1.3917	1.4631		1.5812	1.4961
Swiss Franc	1.5152	1.4974		1.4850	1.5862		1.5738	1.6006
Polish Zloty	4.6885	4.4871		4.1535	3.5002		3.5220	3.5767

Source: Bloomberg

3. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

During the period the company Euro Decorative Boards, Ltd., formerly consolidated by the fully consolidation method, was liquidated.

The liquidation of this company did not affect the comparability of these consolidated financial statements.

4. TANGIBLE AND INTANGIBLE ASSETS

During the periods ended 31 March 2009 and 31 December 2008, movements in tangible and intangible assets, accumulated depreciation and impairment losses were as follows:

Tangible assets

	31.03.2009	31.12.2008
Gross cost:
Opening balance	2 624 864 682	2 683 286 688
Changes in consolidation perimeter		- 7 803 613
Capital expenditure	9 127 298	109 114 008
Disposals	1 360 247	18 059 709
Others	4 981 763	198 644
Exchange rate effect	18 834 557	- 141 871 332
Closing balance	2 656 448 053	2 624 864 686
Accumulated depreciation and impairment losses
Opening balance	1 422 360 005	1 340 465 340
Changes in consolidation perimeter		- 5 170 822
Charge for the period	30 080 597	150 085 946
Disposals	916 537	10 953 347
Exchange rate effect	7 072 204	- 51 578 302
Others	- 570 000	- 488 807
Closing balance	1 458 026 269	1 422 360 008
Carrying amount	1 198 421 784	1 202 504 678

During the periods ended 31 March 2009 and 31 December 2008 no interest paid or any other financial charges were capitalised, in accordance with conditions defined in note 2.9 to consolidated financial statements of year 2008.

Intangible assets
	31.03.2009	31.12.2008
Gross cost:
Opening balance	22 257 745	18 499 178
Changes in consolidation perimeter
Capital expenditure	147 907	5 597 990
Disposals		1 068 180
Exchange rate effect	72 522	- 562 449
Others	441 468	- 208 794
Closing balance	22 919 642	22 257 745
Accumulated amortisation and impairment losses
Opening balance	9 767 088	7 663 030
Changes in consolidation perimeter
Charge for the period	944 314	3 147 724
Disposals		1 068 186
Exchange rate effect	20 491	- 72 543
Others		97 062
Closing balance	10 731 893	9 767 087
Carrying amount	12 187 749	12 490 658

Charges to impairment losses are detailed in note 12.

5. DEFERRED TAXES

At 31 March 2009 and 31 December 2008 deferred tax asset and liability were detailed according to underlying temporary differences as follows:

		Deferred tax assets		Deferred tax liabilities
	31.03.2009	31.12.2008	31.03.2009	31.12.2008
Harmonisation adjusments			61 295 714	59 897 966
Provisions not allowed for tax purposes	3 635 237	3 377 394
Impairment of Assets	2 612 162	2 588 089
Derecognized intangible assets		600
Derecognized tangible assets	138 432	186 174
Derecognized deferred costs	134 650	177 647
Valuation of hedging derivatives	112 731	108 820
Revaluation of tangible assets			2 981 798	3 044 798
Tax losses carried forward	48 203 753	47 547 072
Others			7 364 058	6 959 598
	54 836 965	53 985 797	71 641 570	69 902 362

6. OTHER CURRENT ASSETS

At 31 March 2009 and 31 December 2008, details of Other current debtors on the Consolidated Balance Sheet were as follows:

		31.03.2009			31.12.2008
	Gross Value	Impairment	Net Value	Gross Value	Impairment	Net Value
Derivatives instruments	5 259 222		5 259 222	16 521 457		16 521 457
Financial Instruments	5 259 222		5 259 222	16 521 457		16 521 457
Accrued revenue	4 710 660		4 710 660	5 441 863		5 441 863
Deferred Costs	3 980 529		3 980 529	5 535 277		5 535 277
Others	6 685		6 685	30 815		30 815
Assets out of scope of IFRS 7	8 697 874		8 697 874	11 007 955		11 007 955
Total	13 957 096		13 957 096	27 529 411		27 529 411

7. CASH AND CASH EQUIVALENTS

At 31 March 2009 and 31 December 2008, the detail of Cash and Cash Equivalents was as follows:

	31.03.2009	31.12.2008
Cash at hand	118 843	98 186
Bank deposits	8 423 720	8 040 212
Treasury applications	15 643 618	57 611 859
Cash and cash equivalents on the balance sheet	24 186 181	65 750 257
Bank overdrafts	22 826 239	48 361 481
Cash and cash equivalents on the statement of cash flows	1 359 942	17 388 776

8. LOANS

As at 31 March 2009 and 31 December 2008 Sonae Indústria had the following outstanding loans:

		31.03.2009
		Nominal value
Current	Non current	Current	Non current
102 111 766	286 898 909	102 111 766	286 898 909
			305 000 000
			47 300 363
301 434	119 159 330	301 434	119 159 330
185 671 099	755 733 902	185 671 099	758 358 602
161 484 918	755 733 902	161 484 918	758 358 602
		919 843 520
	80 000 000 3 257 899 24 186 181	Amortised cost 302 375 300 47 300 363 917 218 820 31.12.2008	80 000 000 3 257 899 24 186 181

	Amortised cost		Nominal value		Fair value
	Current	Non current	Current	Non current	adjustment
Bank loans	105 577 761	268 056 483	105 577 761	268 056 483	970 201
Debentures	80 000 000	302 147 961	80 000 000	305 000 000
Obligations under finance leases	3 535 578	47 949 761	3 535 578	47 949 761	-1 242 400
Other loans	301 760	148 419 100	301 760	148 419 100
Gross debt	189 415 099	766 573 305	189 415 099	769 425 344	- 272 199
Investment
Cash and cash equivalent in balance sheet	65 750 257		65 750 257
Net debt	123 664 842	766 573 305	123 664 842	769 425 344	- 272 199
Total net debt	890 238 147		893 090 186

The main changes occurred in bank loans were as follows:

a) In the first quarter of 2009 Sonae Indústria SGPS, SA contracted a loan with a Portuguese financial institution for 20 000 000 euros. The loan pays interest at market rate and principal will be repaid from 2009 to 2015.

b) In the first quarter of 2009 Tafisa Brasil contracted several loans with local banks for a total amount of 32 000 000 BRL. These loans pay interest at market rates and will be redeemed in 2009 and 2010.

9. FINANCIAL DERIVATIVES

At 31 March 2009 and 31 December 2008, the fair value of derivative instruments are stated as follows:

	Other current assets			Other current liabilities		Other non current liabilities
	31.03.09	31.12.08	31.03.09	31.12.08	31.03.09	31.12.08
Derivatives at fair value through profit or loss	5 259 222	16 305 348	4 565 333	6 244 352		9 230
Derivatives at fair value through reserves		216 109	2 659 734	1 168 770
	5 259 222	16 521 457	7 225 067	7 413 122		9 230

10. OTHER NON CURRENT LIABILITIES

At 31 March 2009 and 31 December 2008, details of Other non current liabilities were as follows:

	31.03.2009	31.12.2008
Derivative instruments		9 230
Goup companies	72 604	72 604
Other creditors	434 401	434 401
Financial instruments	507 005	516 235
State and other public entities	48 366 962	44 122 456
Other creditors	72 583 691	74 102 387
Liabilities out of scope of IFRS 7	120 950 653	118 224 843
Total	121 457 658	118 741 078

Other creditors include 72 583 691 euros relating to deferred income-investment subventions.

11. OTHER CURRENT LIABILITIES

At 31 March 2009 and 31 December 2008, Other current liabilities were composed of:

	31.03.2009	31.12.2008
Group companies	35 456	34 910
Derivatives	7 225 067	7 413 122
Trade debtors advances	548 975	643 804
Fixed assets suppliers	5 721 424	8 776 582
Other creditors	2 793 003	2 693 380
Financial instruments	16 323 925	19 561 798
Other creditors	7 229 825	7 842 207
Accrued expenses:
Insurances	82 192	55 226
Personnel costs	22 671 181	23 753 319
Accrued financial expenses	6 412 455	9 137 782
Rappel discounts (annual quantity discounts)	26 396 996	28 919 892
External supplies and services	13 365 993	11 939 042
Other accrued expenses	12 634 677	9 815 327
Deferred income:
Investment subventions	5 872 378	5 891 717
Other deferred income	64 630	64 973
Liabilities out of scope of IFRS 7	94 730 327	97 419 485
Total	111 054 252	116 981 283

12. PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES

Movements occurred in provisions and accumulated impairment losses during the period ended 31 March 2009 were as follows:

Opening balance	Exchange rate effect	Changes to perimeter	Increase	Utilizations	Other changes	Closing balance
57 587 280 19 242	134 837			570 000	- 736 - 19 242	57 151 381
						10 931 182
16 742 196	45 866		2 308 847	1 048 933	- 1 879 103	16 168 873
						19 629
49 108 405	961 713		678 342	2 123 669	422 516	49 047 307
						133 318 371
						37 005 998
						14 877 263
188 512 887	1 250 556		4 304 070	7 129 280	- 1 736 601	185 201 632
	10 931 182 19 629 134 407 934 37 005 998 17 098 955	1 142 415 108 141		2 987 189 1 316 881	3 742 602 3 386 678	- 1 476 565 - 260 036

Increases and decreases in provisions and impairment losses are stated in the Consolidated Income Statement as follows:

	31.03.2009
	Losses	Gains
Cost of sales	525 145	2 157 101
Other operating revenues		2 123 670
(Increase) / decrease in production	791 736	1 229 574
Provisions and impairment losses	2 987 189	1 618 935
Total	4 304 070	7 129 280

13. OTHER OPERATING REVENUES

Details of Other operating revenues on the Consolidated Income Statement for the periods ended 31 March 2009 and 2008 are as follows:

	31.03.2009	31.03.2008
Gains on disposals of non current investments	54 102	4 170 349
Gains on disposals of tangible and intangible assets	230 094	2 900 883
Supplementary Revenue	1 640 097	1 676 792
Investment subventions	1 701 649	1 684 924
Tax received	1 397 354	1 278 103
Reversion of impairment losses	1 618 935	170 273
Gains on provisions	2 123 670	1 272 123
Others	2 543 890	46 492 117
	11 309 790	59 645 563

14. OTHER OPERATING COSTS

Details of Other operating costs on the Consolidated Income Statement for the periods ended 31 March 2009 and 2008 are as follows:

	31.03.2009	31.03.2008
Taxes	2 138 201	2 891 002
Losses on disposal of non current investments
Losses on disposal of tangible and intangible assets	139 360	33 057
Others	889 060	1 293 378
	3 166 621	4 217 436

15. FINANCIAL RESULTS

Financial results for the periods ended 31 March 2009 and 2008 were as follows:

	31.03.2009	31.03.2008
Financial expenses:
Interest expenses
related to bank loans and overdrafts	2 203 487	2 503 808
related to non convertible debentures	4 488 256	7 236 380
related to finance leases	1 291 035	1 328 599
related to hedged loans (hedge derivatives)	761 386	1 179 510
others	1 867 249	1 334 242
	10 611 413	13 582 539
Losses in currency translation
related to customers	490 260	448 314
related to suppliers	744 706	913 290
related to loans	4 899 007	19 748 377
others	487 926	409 715
	6 621 899	21 519 696
Cash discounts granted	3 751 196	5 280 009
Adjustment to fair value of financial instruments at fair value through profit or loss	11 851 268	4 679 661
Losses on valuation of hedging derivative instruments		56 447
Fair value of inefficient component of hedge derivatives
Other finance losses	2 582 436	1 802 722
	35 418 213	46 921 073
Financial revenues:
Interest income
related to bank loans	15 157	87 260
related to loans to related parties	103 180	141 710
Others	298 633	1 117 148
	416 970	1 346 118
Gains in currency translation
related to customers	501 326	691 775
related to suppliers	459 613	1 064 756
related to loans	8 565 797	205 312
others	846 208	959 680
	10 372 944	2 921 523
Cash discounts obtained	515 288	723 838
Adjustment to fair value of financial instruments at fair value through profit or loss	9 094 904	23 484 354
Gains in valuation of hedging derivative instruments
Fair value of inefficient component of hedge derivatives
Other finance gains	34 020	14 696
	20 434 126	28 490 529
Finance profit / (loss)	- 14 984 087	- 18 430 544

16. TAXES

Corporate income tax accounted for in the periods ended 31 March 2009 and 2008 is detailed as follows:

	31.03.2009	31.03.2008
Current tax	385 727	3 753 136
Deferred tax	96 322	11 048 398
	482 049	14 801 534

17. SEGMENT INFORMATION

The main activity of the Group is the production of wood based panels and derivative products through industrial plants and commercial facilities located in Portugal, Spain, France, Germany, United Kingdom, Switzerland, The Netherlands, Canada, Brazil and South Africa.

In the notes to the consolidated financial statements of the period ended 31 December 2008, Sonae Indústria disclosed the following geographic segments in accordance with IAS 14.

• Portugal;
• Spain;
• France;
• United Kingdom;
• Germany;
• Rest of Europe;
• Brazil;
• Canada;
• South Africa.

For 2009 financial year and interim reporting periods, IFRS 8 is replacing IAS 14. Under this new standard, segments to be disclosed are the ones included in the internal reporting system of financial information to the chief operating decision maker, namely:

• Iberian Peninsula;
• France;
• Germany;
• United Kingdom;
• Canada;
• Brazil;
• South Africa.

Non reportable segments are included under All other segments.

		Turnover	Operating Result
	External				Intragroup
Segments	31.03.2009	31.03.2008	31.03.2009	31.03.2008	31.03.2009	31.03.2008
Iberian Peninsula		77 740 581 119 699 294	2 116 205	3 404 827	- 1 104 875	11 285 747
France	36 044 994	58 468 639	12 296 360	26 479 724	- 13 916 217	- 1 562 943
Germany		101 982 118 139 075 310	25 585 756	40 603 108	- 10 893 265	- 1 184 254
United Kingdom	15 829 431	27 727 592			- 1 218 516	863 002
Canada	27 010 394	22 446 444			- 1 721 977	- 4 494 129
Brazil	28 719 921	41 573 084			3 035 899	10 907 736
South Africa	15 649 134	24 396 359			483 754	4 323 315
All other segments	37 316 094	57 557 341	16 031 324	27 386 057	- 2 050 293	148 386
Total segments		340 292 667 490 944 064	56 029 646	97 873 716	- 27 385 491	20 286 860
Adjustments
Income accrual not recognized						42 300 727
Provisions not recognized						- 9 401 000
Impairment losses not recognized						- 2 000 000
Utilization of provisions not recognized					740 576
Others					1 342 999	- 1 573 013
Total segments after adjustments					- 25 301 916	49 613 574
Consolidated Income Statement					- 25 301 916	49 613 574

18. Contingencies

In March 2009, Glunz AG, GHP Gmbh and other wood based panel producers in Germany were subject to inspections carried out by the German Competition Authority. The investigations are at a fact-finding stage only and no formal allegations have been made against our Companies or any of their employees. According to the information available at this date, the Directors consider that any eventual liability related to such proceedings is deemed to be remote."

19. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

These consolidated financial statements were approved by the Board of Directors and authorised for issuance on 6 May 2009.