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Sonae SGPS Earnings Release 2010

Dec 2, 2010

1901_10-q_2010-12-02_b1d8e650-ceee-4b48-a0fd-4455f925f5ee.pdf

Earnings Release

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1MAIN HIGHLIGHTS

Sonae reinforced growth and profitability, with net profit increasing to 98 million euros.

  • On a comparablebasis1 , turnover increased by 6%, reinforcingthe past quarters growth trend;
  • Profitability continued to increase,with Recurrent EBITDA up by 12%, generating a margin of 11% onsales;
  • Direct net income (equity holders) increased by 17% to 113 million euros;
  • Net debt fellby 300million euros (-9%) compared to end 9M09.
  • Sonae MC further strengthened its market leadership, with turnover up 6%, while also improving profitability, reaching anEBITDA margin on sales of 6.3% (+90bp);
  • Sonae SR maintained double digit growth of 15%;
  • Sonae Sierra once more demonstratedits resilience, with improved direct results and high occupancy rates;
  • Sonaecom again performed above expectations with strong improvementsin EBITDA and FCF.

Message from the CEO, Paulo Azevedo

This was yet another quarter of growth which saw improvements in return and progress towards meeting our strategic targets. I am particularly happy that we have been able to keep an ambitious target of investment, international expansion and job creation, at the same time that we were able to make sufficient savings to reduce our debt. Importantly, we will end the year with more than 2,000 new jobs in Portugal and 1,000 in Spain, two economies that are struggling to generate employment.

Our ability to provide customers with value and savings has allowed us to continue to grow in Retail market share. Retail turnover (Sonae MC and Sonae SR) grew by 8% and we continued our international expansion not only in Spain but also in Saudi Arabia where the first franchised stores were officially opened.

Sonaecom and Sonae Sierra once again posted significant and improved figures in EBITDA. Importantly, Sonaecom also made gains in mobile market share while Sonae Sierra accelerated the growth into new countries with supplying development services.

In total, annualised return on equity increased by 9pp and net debt fell by 300 million euros compared to the same quarter of last year.

I am very proud of the results that our team is consistently delivering in the pursuit of such an ambitious set of objectives.

1 Excludes petrol stations, which operation was transferred to third parties in 2Q10

2INCOME STATEMENT HIGHLIGHTS

Turnover
Million euros
9M09 9M10 y.o.y
Sonae excl.petrol stations 3,968 4,211 6.1%
Sonae MC 2,238 2,375 6.1%
Sonae SR 756 870 15.0%
Sonae RP 9
1		 9
5		 4.6%
Sonae Sierra (1) 133 143 7.0%
Sonaecom 717 684 -4.5%
Investment mngmt. 147 159 8.0%
Elimin.& adjust. -115 -114 0.4%
Petrol stations 9
8		 7
5		 -24.2%
Sonae 4,066 4,286 5.4%
(1) Shoppingcentres areproportionally consolidated (5
0%).

Turnover quarterly trend (million euros)

Turnover breakdown (million euros)

MC – food based retail; SR– specialised retail; RP – retail property; Sierra – shopping centres; SC – telecommunications; IM-Investment management; E&A – Eliminations & Adjust.; PS – Petrol stations.

Turnover

  • On a comparable basis, excluding petrol stations2 , Sonae's turnover increased by 6%.
  • Sonae MC continued to strengthen its market leadership, with turnover up 6%, higher than the rate of market growth. Like for like sales increased by 3% (4% in 3Q10), benefiting from a clear value focused offering, driven by: (i) a successful private label programme, with own brands equal to 26% of FMCG category sales for the 9 month period; (ii) and the effectiveness of the loyalty card, based on a segmentation of the promotional activity. Average unit price per article was marginally negative in 9M10, with the 3Q10 figure already positive due to the impact of market inflation as from March 2010, despite the prevailing trend of trading down.
  • Sonae SR's turnover continued to grow strongly by 15%, with a 2% like-for-like growth. Sonae SR Portugal sales were up 8%, with 2% like-for-like growth, while Sonae SR International sales were up 62%, reflecting a like-for-like sales increase of 2%. Worthy of mention were the gains in market share of Worten and SportZone in Portugal and Spain, and the resilience of the fashion formats, which are clearly in tune with market demand for value for money products.
  • Sonae Sierra continued to perform well in face of challenging conditions with turnover increasing by 7%, despite the sale of 45% of the Shopping Centre Alexa, in Germany, reflecting: (i) shopping centre openings in 2009 and 2010; (ii) continued high occupancy rates (96%); and (iii) a strong increase in total rents collected on a like for like basis (+5%).
  • Sonaecom turnover was down by 5%; growth in mobile customer revenues did not entirely offset the impact of further reductions in Mobile Termination Rates and in Product Sales, the later impacted by the slowdown in the e-initiatives programme in Portugal.

2 During 2Q10, Sonae transferred the operation of 8 petrol stations to a third party.

Recurrent EBITDA (1)

Million euros
9M09 9M10 y.o.y
Sonae 429 480 11.9%
Sonae MC 120 149 24.3%
Sonae SR 1
1		 1
6		 50.4%
Sonae RP 8
5		 8
5		 0.4%
Sonae Sierra (2) 6
3		 6
9		 9.8%
Sonaecom 137 149 9.1%
Investment mngmt. 2 4 55.6%
Elimin.& adjust. 1
1		 8 -33.7%

(1) EBITDA excluding extraordinary items; (2) Shopping centres are proportionally consolidated (5 0%).

Recurrent EBITDA (1)

9M09 9M10 y.o.y
10.6% 11.2% 0.7pp
5.4% 6.3% 0.9pp
1.4% 1.9% 0.4pp
93.2% 89.5% -3.7pp
47.4% 48.7% 1.3pp
19.1% 21.8% 2.7pp
1.6% 2.3% 0.7pp

(1) EBITDA excluding extraordinary items; (2) Shopping centres are proportionally consolidated (5 0%).

Recurrent EBITDA quarterly trend

Recurrent EBITDA breakdown (million euros)

MC – food based retail; SR– specialised retail; RP – retail property; Sierra – shopping centres; SC – telecommunications; IM-Investment management; E&A – Eliminations & Adjust.

Recurrent EBITDA

  • Sonae continued to improve its recurrent EBITDA, which increased by 12%, with margins up by 70bp to 11% of turnover, despite Portugal's deteriorating macroeconomic environment.
  • Sonae MC's recurrent EBITDA increased by 24%, equal to a margin on sales of 6% (+0.9pp), with margins further increasing in 3Q10 (+1.9pp) compared to 3Q09. These improvements reflect: (i) continued gains in market share; (ii) major efforts made to improve operations towards a more cost-effective model; (iii) the success of ongoing measures to improve internal operating efficiency; (iv) increased international sourcing for private label products; and (v) greater effectiveness of promotional campaigns launched using the loyalty card.
  • Sonae SR's recurrent EBITDA improved by 5 million to 16 million euros, equal to a margin on sales of 2% (+0.4pp), reflecting the sustained increase in profitability of Portuguese operations and the progressively lower negative contribution from International operations. Sonae SR Portugal increased EBITDA by a significant 20%, reaching a higher margin of 4.9% (+0.5pp), achieved through improved efficiency of the more recent formats and the commercial success of the own brand products. Sonae SR International posted a negative EBITDA of 18 million euros, on track with its goal of achieving positive EBITDA in 2012 and becoming a key retail player in Spain.
  • Sonae Sierra's recurrent EBITDA increased by 10%, reflecting the increase of the portfolio of assets and ongoing efforts to optimize operational efficiency.
  • Sonaecom's recurrent EBITDA improved by 9%, clearly reflecting the impact of the cost control initiatives implemented in the Telco unit, the goal of which is to increase efficiency across all its business divisions and support functions.

Direct net income

Million euros
9M09 9M10 y.o.y
Recurrent EBITDA 429 480 11.9%
EBITDA 462 493 6.6%
P&I losses (1) -17 -15 15.3%
D&A (2) -221 -218 1.5%
EBIT 224 260 16.3%
Net financial results -98 -78 20.7%
Other income (3) 2 0 -84.3%
EBT 128 183 42.8%
Taxes -20 -42 -115.0%
Direct net income 108 141 29.8%
Equity holders 9
6		 113 17.4%
Minority interests 1
3		 2
8		 124.7%

(1) Provisions and impairment losses including reversion of impairments and badwill; (2) Depreciation & Amortizations; (3) Share of results of associated undertakings + dividends.

EBIT breakdown (million euros)

MC – food based retail; SR– specialised retail; RP – retail property; Sierra – shopping centres; SC – telecommunications; IM-Investment management; E&A – Eliminations & Adjust.

Net income – equity holder's quarterly trend (million euros)

Direct net income – equity holders

  • Sonae's EBITDA increased by 7% to 493 million euros, despite the capital gains of 33 million euros recognized in 9M09.
  • EBITDA was 13 million euros higher than recurrent EBITDA, reflecting the gains generated by the planned real estate monetization process. A highlight was the conclusion of further sale & leaseback transactions during 3Q10, involving 3 Modelo supermarkets, generating a capital gain of 3 million euros.
  • Sonae's total direct net income increased by 33 million euros to 141 million euros, with the share of equity holders totalling 113 million euros, 17 million euros higher than 9M09. This increase mainly reflects a strong EBITDA performance. The fall in net financial expenses was annulled by the higher taxation charges in the 9M10.
  • Net financial results improved by 21% compared to 9M09, mainly reflecting a fall in net interest expenses of 24 million euros, due to: (i) the lower average total debt in the period; and (ii) the lower average cost of debt, as a result of the general decrease in market Euribor rates.
  • The taxation charge for the period was 42 million euros, compared to 20 million euros in 9M09, mainly explained by the strong increase in EBT. The effective corporate tax rate was 23%.

Shopping centres indirect net income (1) Million euros

9M09 9M10 y.o.y
VCIDP (2) -76 4 -
Others -2 -4 -83.1%
Taxes 1
5		 -14 -
Indirect net income -64 -15 76.8%
Equity holders -64 -15 76.8%
Minority interests 0 0 -

(1) Sonae Sierra's Management figures, based on the proportional method (% of ownership); (2) Value created on investment and development properties; includes one-off investments.

VCIDP breakdown (million euros)

income

Indirect net income – quarterly trend (million euros)

Total income – equity holders – YTD trend (million euros)

Shopping centres indirect income

  • Equity holders' share of consolidated indirect income was negative 15 million euros, compared to negative 64 million euros in 9M09, with this indirect component of net income already stabilising in 3Q10, reflecting the positive performance of the VCIDP starting from 2Q10.
  • VCIDP in the shopping centres business was 4 million, reflecting the improved performance of shopping centres owned and 2 million euros of value recognized on development activity (Le Terrazze and Uberlândia Shopping centres), compensating for the higher capitalization yields in Greece and Portugal.
  • The latest quarterly valuation of assets implies that average yields increased in Greece by 125bp compared to 2Q10, while those in other countries remained flat. It should be noted that Sierra only owns 1 shopping centre in Greece, or less than 2% of the value of its portfolio of 53 shopping centres
  • The taxation line shows a cost of 14 million euros, mainly due to the recognition of additional deferred tax liabilities in 2Q10. These were generated by a corporation tax increase (+2.5pp) in Portugal and its application to possible capital gains on the sale of properties owned.

Total income – equity holders

  • Total income attributable to equity holders improved by 66 million euros, from 32 million euros in 9M09 to 98 million euros in 9M10, despite the one-off capital gains of 33 million euros recognized in 9M09, as compared to a 13 million euros capital gain in 9M10.
  • The sound operational and financial performance in the period and the stabilization of yields explain the significant improvement in total income, which generated an annualised return on equity close to the target rate of 15%.

3INVESTMENT

CAPEX
Million euros
9M09 9M10 y.o.y
Sonae 462 278 -39.8%
as a % of turnover 11.4% 6.5% -4.9pp
Sonae MC 9
6		 5
8		 -39.7%
Sonae SR 7
2		 5
9		 -17.7%
Sonae RP 7
8		 1
8		 -77.2%
Sonae Sierra (1) 7
4		 4
1		 -44.8%
Sonaecom 103 8
8		 -15.3%
Investment mngmt. 3
2		 1
3		 -59.5%
Elimin.& adjust. 6 2 -71.7%
Rec. EBITDA - CAPEX -33 202 -
(1) Shoppingcentres areproportionally consolidated (5
0%).
Invested capital
Million euros
9M09 9M10 y.o.y
Sonae 5,023 4,899 -2.5%
Investment properties(1) 1,866 1,770 -5.2%
Technical investment(2) 3,199 3,189 -0.3%
Financial investment 3
7		 4
4		 18.4%
Goodwill 706 734 4.0%
Working capital -786 -838 -6.6%
(1) Includes shopping centres accounted for as financial investments i
n the

balancesheet; (2) includes availablefor saleassets.

MC – food based retail; SR– specialised retail; RP – retail property; Sierra – shopping centres; SC – telecommunications; IM-Investment management; E&A – Eliminations & Adjust.

.

CAPEX

  • Sonae's total CAPEX in 9M10 totalled 278 million euros (6% of turnover), significantly lower than in 9M09. This fall is consistent with the company's capital light strategy, and occurred despite the strong push to increase its presence in the Spanish market with the Worten, SportZone and Zippy specialised retail formats.
  • Sonae MC's CAPEX of 58 million euros was mainly spent on store refurbishment, logistics, the opening of 2 Modelo stores and preparatory work for future openings.
  • Sonae SR's CAPEX totalled 59 million euros, of which 30 million euros was for the internationalization, 8 million euros to further increase the geographical coverage of stores in Portugal, and the remaining allocated to refurbishment, IT/IS and the expansion of the logistics infrastructure.
  • Sonae RP's CAPEX amounted to 18 million euros, 77% below that in 9M09, a clear indication of the capital light strategy being followed (leasing instead of owning) for new retail sales area, particularly for Modelo stores.
  • Sonae Sierra CAPEX included: (i) the conclusion of the shopping centre in Leiria, Portugal (opened in March); (ii) progress on the development of projects in the pipeline already announced and scheduled for 2011, namely Le Terrazze, in Italy and Uberlândia, in Brazil; and scheduled for 2012, namely Londrina, in Brazil; and (iii) progress on the expansion of Parque D.Pedro, in Brazil.
  • Sonaecom CAPEX reflects ongoing investment in network capacity, both in the core and in the backhaul, which will ensure performance improvements and lead to future OPEX savings.

4CAPITAL STRUCTURE

Capital structure
Million euros
9M09 9M10 y.o.y
Net debt inc. SH loans 3,436 3,136 -8.8%
Retail businesses (1) 1,503 1,356 -9.8%
Sonae Sierra (2) 957 842 -12.1%
Sonaecom (3) 386 354 -8.4%
Investment mngmt. 9
0		 7
4		 -18.0%
Holding (4) 500 511 2.1%

(1) includes Sonae MC, Sonae SR and Sonae RP; (2) Shopping centres are proportionally consolidated (5 0%); (3) excludes securitazation transaction; (4) includesSonae's individual accounts.

Sonae Sierra and Holding Loan to value

Note: Leverage Ratios based on financial debt (excluding shareholder loans)

Capital structure

  • Sonae's net debt fell by 9%, in line with the company's objective of deleveraging over time in absolute and relative terms. This performance was due to: (i) strong cash flow generated; (ii) the sale of property assets owned coupled with a capital light approach to growth; and was achieved despite dividends being paid amounting to 63 million euros (vs 60 million euros in 9M09).
  • Sonae's weighted average maturity stood at approximately 4.7 years, with no major debt repayments expected over the next 12 months.
  • Retail business' net debt as at end 9M10 mainly reflects its improved (EBITDA-CAPEX) performance over the last 12 months, as well as inflows from the proceeds of sale & leaseback operations concluded, amounting to 66 million euros. Compared to end 9M09, Net Debt to EBITDA (last 12 months) improved to 3.4x, explained by a combination of lower net debt and a higher level of EBITDA in the prior 12 month period.
  • Sonae Sierra's net debt was 12% lower than that at end 9M09, including the inflow from the sale of a majority stake of Alexa to Union Investment and the sale of Leiria Shopping to the Sierra Portugal Fund. Loan to value decreased to 47%, despite the fall in value of European Shopping centres in the portfolio over the last 12 months.
  • Sonaecom's net debt3 stood at 354 million euros, primarily reflecting the positive FCF performance. Net Debt to EBITDA (last 12 months) improved to 1.9x, as a result of both a decrease in net debt and improved EBITDA performance over the last 12 months.
  • Holding's net debt increased by 11 million euros, with loan to value standing at 14.8%.

3 Excluding the proceeds from the securitization transaction

5CORPORATE INFORMATION

Quarterly corporate developments

Sonae announced the extension of the maturity of its Cash Settled Equity Swap, originally signed on 15 November 2007 covering a total of 130 million shares, corresponding to 6.5% of its share capital.

The transaction has been extended for an additional maturity of up to 3 years until November 2013 and continues to be a strictly financial settlement, with no obligations or rights that entitle Sonae to acquire the underlying asset.

This transaction allows Sonae to maintain full economic exposure to the price trend of the shares underlying the Equity Swap, which the Board of Directors considers to be in the best interest of the Company under present market conditions.

Subsequent events

Sonae further completed 3 sale & lease back transactions, including the sale of 2 Modelo supermarkets and 3 stores (Continente, SportZone, and Worten) within Leiria Shopping.

Outlook

Sonae remains cautious about the overall economic situation and the uncertainty existing concerning unemployment and consumer demand in Iberia.

We will continue to pursue international growth, maintaining operational profitability and reducing relative and absolute debt levels.

6ADDITIONAL INFORMATION

The consolidated financial information contained in this report is unaudited and based on financial statements that have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), as adopted by the European Union.

Organizational structure

Glossary

ARPU Average revenue per user
CAPEX Investments in tangible and intangible assets, investment
properties and acquisitions; Gross CAPEX, not including
cash inflows from the sale of assets
Direct income Direct income excludes contributions to indirect income
EBITDA Turnover + other revenues -impairment reversal - bad will
operating costs (based on direct net income) + gain/losses
from sales of companies; includes capital gains on the sale
of shareholdings since 2008
EBITDA margin EBITDA / Turnover
Eliminations & others Intra-groups + consolidation adjustments + contributions
from other companies not included in the identified
segments
EOP End of period
Free Cash Flow (FCF) EBITDA – operating capex-change in working capital
financial investments-financial results-income taxes
FMCG Fast Moving Consumer Goods
Financial net debt Total net debt excluding shareholders loans
Indirect income Indirect Income includes Sierra's contributions net of taxes
to the consolidated income statement, arising from: (i)
investment property valuations; (ii) capital gains (losses)
on the sale of financial investments, joint ventures or
associates; (iii) impairment losses (including goodwill)
and; (iv) provision for assets at Risk; The data used for the
analysis of indirect income was computed based on the
proportional method for all companies owned by Sonae
Sierra; for Sonae, the analysis was done using the
consolidation method for each company, as stated in the
consolidated financial accounts.
Investment properties Shopping centres in operation owned by Sonae Sierra
Liquidity Cash & equivalents + current investments
Like for Like sales Sales made by stores that operated in both periods under
the same conditions. Excludes stores opened, closed or
which suffered major upgrade works in one of the periods
Loan to value Holding Holding Net debt/ Investment Portfolio Gross Asset Value;
gross asset value based on Market multiples, real estate
NAV and market capitalization for listed companies
Loan to value shopping centres Net debt / (investment properties + properties under
Development)
Net invested capital Gross real estate assets + other tangible and intangible
assets - amortizations and impairment losses + financial
investments + working capital (including other assets & liabilities
such as deferred taxes); all figures at acquisition cost, with the
exception of Sonae Sierra's assets.
Net asset value (NAV) Open market value attributable to Sonae Sierra - net debt
- minorities + deferred tax liabilities
Net debt Bonds + bank loans + other loans + financial leases
– cash, bank deposits and current investments
Other income Share of results of associated undertakings + dividends
Other loans Bonds, leasing and derivatives
Open market value (OMV) Fair value of properties in operation and under
development (100%), provided by an independent entity
RoIC (Return on invested capital) EBIT(12 months) /Net invested capital
Recurrent EBITDA EBITDA excluding non-recurrent items, namely gains in
sales of investments and other movements that distort
comparability
Shopping Centre Services business Asset management services + property management
services
Technical investment Tangible assets + intangible assets + other fixed assets –
depreciations and amortizations
Value created on investment and development
properties (VCIDP)		 Increase (decrease) in the valuation of shopping centres in
operation and under development; shopping centres
under development are only included if a high degree of
certainty concerning their conclusion and opening exists

Consolidated income statement

Consolidated income statement (1)
Million euros
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Direct income
Turnover 1,458 1,509 3.5% 4,066 4,286 5.4%
Recurrent EBITDA (2) 157 185 17.9% 429 480 11.9%
Recurrent EBITDA margin 10.7% 12.2% 1.5pp 10.6% 11.2% 0.7pp
EBITDA 186 188 1.1% 462 493 6.6%
EBITDA margin 12.7% 12.4% -0.3pp 11.4% 11.5% 0.1pp
Provisions and impairment losses (3) -4 -5 -30.5% -17 -15 15.3%
Depreciations and amortizations -76 -72 5.7% -221 -218 1.5%
EBIT 106 111 5.0% 224 260 16.3%
Net financial results -26 -27 -3.0% -98 -78 20.7%
Other income (4) 1 0 - 2 0 -84.3%
EBT 8
1		 8
4		 4.1% 128 183 42.8%
Taxes -9 -17 -89.6% -20 -42 -115.0%
Direct net income 7
2		 6
7		 -6.6% 108 141 29.8%
Attributable to equity holders 6
7		 5
8		 -13.6% 9
6		 113 17.4%
Attributable to minority interests 5 9 91.7% 1
3		 2
8		 124.7%
Shoppings indirect income
Indirect net income (5) -13 1 - -100 -24 75.9%
Attributable to equity holders -7 -1 86.3% -64 -15 76.9%
Attributable to minority interests -6 2 - -36 -9 74.1%
Total net income
Total net income 5
9		 6
8		 16.6% 8 117 -
Attributable to equity holders 6
0		 5
7		 -5.1% 3
2		 9
8		 -
Attributable to minority interests -1 1
1		 - -24 1
9		 -
(1) Quarterly numbers are unaudited; (2) EBITDA excluding extraordinary items; (3) Includes reversion of impairments and badwill; (4) share of results of

(1) Quarterly numbers are unaudited; (2) EBITDA excluding extraordinary items; (3) Includes reversion of impairments and badwill; (4) share of results of associated undertakings + dividends; (5) Statutory numbers; for management purposes, Sonae uses the decomposition of the Indirect result according to the notes to the consolidated financial statements.

Consolidated balance sheet

Balance sheet
Million euros
9M09 9M10 y.o.y 2009 YTD
TOTAL ASSETS 7,510 7,382 -1.7% 7,552 -2.2%
Non current assets 6,044 6,018 -0.4% 6,108 -1.5%
Tangible and intangible assets 3,193 3,189 -0.1% 3,221 -1.0%
Goodwill 706 734 4.0% 746 -1.6%
Investment properties in operation 1,632 1,617 -0.9% 1,677 -3.6%
Investment properties under development 194 101 -47.8% 120 -15.4%
Other investments 7
7		 9
6		 24.0% 9
3		 3.4%
Deferred tax assets 219 235 7.4% 230 2.2%
Others 2
2		 4
5		 107.9% 2
1		 113.9%
Current assets 1,467 1,364 -7.0% 1,443 -5.5%
Stocks 617 639 3.7% 603 6.0%
Trade debtors 206 181 -12.2% 208 -13.1%
Liquidity 161 183 13.5% 230 -20.4%
Others 483 361 -25.2% - 402
€		 -10.3%
-
SHAREHOLDERS' FUNDS 1,586 1,764 11.2% 1,701 3.7%
Equity holders 1,151 1,257 9.2% 1,223 2.8%
Attributable to minority interests 435 506 16.3% 478 5.9%
LIABILITIES 5,924 5,618 -5.2% 5,850 -4.0%
Non-current liabilities 3,790 3,744 -1.2% 3,561 5.1%
Bank loans 1,424 1,315 -7.6% 1,208 8.9%
Other loans 1,740 1,811 4.1% 1,736 4.3%
Deferred tax liabilities 325 369 13.5% 326 12.9%
Provisions 6
3		 5
8		 -8.5% 5
1		 14.7%
Others 237 191 -19.5% 240 -20.4%
Current liabilities 2,134 1,874 -12.2% 2,289 -18.1%
Bank loans 301 134 -55.5% 233 -42.5%
Other loans 7
9		 1
3		 -83.5% 8
1		 -83.8%
Trade creditors 1,041 1,053 1.1% 1,220 -13.7%
Others 713 674 -5.5% 755 -10.7%
SHAREHOLDERS' FUNDS +
LIABILITIES		 7,510 7,382 -1.7% 7,552 -2.2%

Invested capital & return on invested capital (RoIC)

Invested capital

Million euros

9M09 9M10 y.o.y 2009 YTD
5,023 4,899 -2.5% 4,781 2.5%
1,866 1,770 -5.2% 1,836 -3.6%
3,199 3,189 -0.3% 3,248 -1.8%
3
7		 4
4		 18.4% 5
3		 -17.6%
706 734 4.0% 729 0.7%
-786 -838 -6.6% -1,085 22.8%
1,586 1,764 11.2% 1,701 3.7%
3,436 3,136 -8.8% 3,080 1.8%

(1) Includes shopping centres accounted for as financial investments in the balance sheet; (2) includes available for sale assets; (3) Financial net debt + net shareholder loans.

Return on invested capital

Million euros
9M09 9M10 y.o.y 2009 YTD
Invested capital 5,023 4,899 -2.5% 4,781 2.5%
Sonae MC 630 593 -6.0% 484 22.5%
Sonae SR 329 393 19.7% 250 57.5%
Sonae RP 1,541 1,461 -5.2% 1,523 -4.1%
Sonae Sierra (1) 1,679 1,583 -5.8% 1,661 -4.7%
Sonaecom 753 772 2.5% 752 2.6%
Investment mngmt. 154 154 0.1% 151 2.4%
Elimin.& adjust.(2) -63 -57 10.8% -39 -44.9%
EBIT (last 12 months) 359 386 7.5% 349 10.4%
Sonae MC 130 149 14.8% 124 20.1%
Sonae SR 5 9 90.4% 1
0		 -10.9%
Sonae RP 8
7		 9
1		 4.8% 8
3		 9.5%
Sonae Sierra (1) 8
5		 8
8		 2.8% 8
1		 7.6%
Sonaecom 2
2		 5
7		 160.7% 2
4		 138.5%
Investment mngmt. 2
1		 -5 - 2
5		 -
Elimin.& adjust.(2) 9 -3 - 2 -
RoIC 7.1% 7.9% 0.7pp 7.3% 0.6pp
Sonae MC 20.6% 25.1% 4.5pp 25.6% -0.5pp
Sonae SR 1.4% 2.2% 0.8pp 4.0% -1.7pp
Sonae RP 5.6% 6.2% 0.6pp 5.5% 0.8pp
Sonae Sierra 5.1% 5.5% 0.5pp 5.0% 0.6pp
Sonaecom 2.9% 7.4% 4.5pp 3.2% 4.2pp
Investment mngmt. 13.7% -3.1% -16.8pp 16.3% -19.4pp
(1) Shoppingcentresareproportionally consolidated (5
0%); (2) includesSonaeHolding.

Working capital breakdown

Working capital breakdown

Million euros
9M09 9M10 y.o.y 2009 YTD
Working capital -786 -838 -6.6% -1,085 22.8%
Sonae MC -367 -413 -12.6% -530 22.0%
Sonae SR 4
1		 6
8		 65.0% -52 -
Sonae RP -36 -37 -1.3% -38 2.7%
Sonae Sierra (1) -257 -248 3.7% -238 -4.1%
Sonaecom -134 -117 13.2% -150 22.4%
Investment mngmt. 6 -35 - -21 -65.7%
Elimin.& adjust.(2) -39 -58 -46.0% -56 -2.1%
(1) Shoppingcentresareproportionally consolidated (5
0%); (2) includesSonaeHolding.

Retail formats & retail real estate main highlights (stand-alone figures)

Retail formats & Retail real estate operating review (1)
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Turnover growth
Sonae MC 4.9% 5.8% 0.9pp 6.6% 6.1% -0.5pp
Sonae SR 21.5% 11.3% -10.2pp 23.5% 15.0% -8.5pp
LFL sales growth
Sonae MC -2.4% 3.6% 6.1pp 0.9% 2.8% 1.9pp
Sonae SR -8.0% 0.0% 8pp -5.0% 2.2% 7.2pp
Total employees (EOP) 34,017 35,725 5.0% 34,017 35,725 5.0%
Sonae MC 25,886 26,579 2.7% 25,886 26,579 2.7%
Sonae SR 8,097 9,109 12.5% 8,097 9,109 12.5%
Sonae RP 3
4		 3
7		 8.8% 3
4		 3
7		 8.8%
(1) Quarterly numbers areunaudited.

(1) Quarterly numbers areunaudited.

Retail formats & Retail real estate financial review (1)

Million euros
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Sonae MC
Turnover 810 857 5.8% 2,238 2,375 6.1%
Recurrent EBITDA 5
1		 7
0		 38.3% 120 149 24.3%
EBITDA 5
1		 7
0		 38.3% 120 149 24.3%
EBITDA margin 6.3% 8.2% 1.9pp 5.4% 6.3% 0.9pp
CAPEX 3
2		 1
7		 -47.5% 9
6		 5
8		 -39.7%
Sonae SR
Turnover 283 315 11.3% 756 870 15.0%
Portugal 245 259 5.7% 659 712 8.1%
International (2) 3
8		 5
6		 47.7% 9
8		 158 61.5%
Recurrent EBITDA 9 9 2.2% 1
1		 1
6		 50.4%
EBITDA 9 9 2.2% 1
1		 1
6		 50.4%
Portugal 1
5		 1
6		 8.7% 2
9		 3
5		 19.8%
International (2) -6 -7 -18.5% -18 -18 -1.6%
EBITDA margin 3.1% 2.9% -0.3pp 1.4% 1.9% 0.4pp
Portugal 6.0% 6.2% 0.2pp 4.4% 4.9% 0.5pp
International (2) -15.5% -12.4% 3.1pp -18.6% -11.7% 6.9pp
CAPEX 1
6		 1
7		 7.3% 7
2		 5
9		 -17.7%
Portugal 1
2		 1
0		 -21.5% 4
3		 2
8		 -33.6%
International (2) 4 8 98.5% 3
0		 3
1		 5.1%
Sonae RP
Turnover 3
1		 3
1		 -0.3% 9
1		 9
5		 4.6%
Recurrent EBITDA 2
8		 2
7		 -3.5% 8
5		 8
5		 0.4%
EBITDA 2
8		 3
0		 6.9% 8
5		 9
7		 14.4%
EBITDA margin 90.1% 96.6% 6.5pp 93.2% 101.9% 8.7pp
CAPEX 1
6		 3 -79.4% 7
8		 1
8		 -77.2%
Net debt including shareholder loans 1,503 1,356 -9.8% 1,503 1,356 -9.8%
Net debt 1,485 1,374 -7.5% 1,485 1,374 -7.5%
Net debt/EBITDA (last 12 months) 4.2 x 3.4 x -0.8x 4.2 x 3.4 x -0.8x
EBITDA/net interest expenses (last 12 months) 6.6 x 13.5 x 6.8x 6.6 x 13.5 x 6.8x
Net debt/invested capital 59.4% 56.1% -3.3pp 59.4% 56.1% -3.3pp

(1) Quarterly numbers areunaudited; (2) Includeswholesaleoperation.

Stores and sales area

Number of stores Sales area('000 m2 )
3
1
Dec
2009		 Stores
opened		 Banner
changed		 Stores
closed		 3
0
Sept
2010		 3
1
Dec
2009		 Stores
opened		 Banner
changed		 Stores
closed		 3
0
Sept
2010		 Area
owned
(%)
Sonae MC 378 2
3		 0 -7 394 528 6 0 -1 532 84%
Continente 3
9		 0 0 0 3
9		 284 0 0 0 284 90%
Modelo (1) 125 2 0 0 127 218 4 0 0 222 79%
Área Saúde 115 1
1		 0 -1 125 1
1		 1 0 -1 1
1		 76%
Bom Bocado 8
0		 6 0 -5 8
1		 4 0 0 0 4 76%
Book.It 1
4		 2 0 -1 1
5		 5 1 0 0 5 62%
Others (2) 5 2 0 0 7 5 0 0 0 6 14%
Sonae SR 454 3
9		 0 -13 480 304 3
6		 0 -3 337 35%
COMPANY -OWNED (3) 454 3
4		 0 -13 475 304 3
4		 0 -3 335 35%
Electronics division 211 1
0		 0 -11 210 156 1
6		 0 -3 169 42%
Portugal 197 5 0 -11 191 122 3 0 -3 122 52%
Worten 132 3 0 0 135 113 3 0 0 116 54%
Vobis 1
7		 0 0 -8 9 8 0 0 -3 5 15%
Worten Mobile 4
8		 2 0 -3 4
7		 1 0 0 0 1 39%
Spain 1
4		 5 0 0 1
9		 3
4		 1
3		 0 0 4
7		 15%
Worten 1
4		 5 0 0 1
9		 3
4		 1
3		 0 0 4
7		 15%
Sports division 100 9 0 -1 108 8
0		 1
3		 0 0 9
2		 9
%
Portugal 8
6		 1 0 -1 8
6		 6
2		 0 0 0 6
3		 13%
SportZone 7
5		 0 0 0 7
5		 6
1		 0 0 0 6
1		 14%
Loop 1
1		 1 0 -1 1
1		 2 0 0 0 2 0
%
Spain 1
4		 8 0 0 2
2		 1
7		 1
2		 0 0 2
9		 0
%
Sport Zone 1
4		 8 0 0 2
2		 1
7		 1
2		 0 0 2
9		 0
%
Fashion division 143 1
5		 0 -1 157 6
8		 6 0 0 7
3		 53%
Portugal 133 5 0 -1 137 6
4		 2 0 0 6
6		 58%
Modalfa 9
9		 3 0 -1 101 5
1		 2 0 0 5
3		 70%
Zippy 3
4		 2 0 0 3
6		 1
2		 0 0 0 1
3		 6
%
Spain 1
0		 1
0		 0 0 2
0		 4 3 0 0 7 0
%
Zippy 1
0		 1
0		 0 0 2
0		 4 3 0 0 7 0
%
FRANCHISING 0 5 0 0 5 0 2 0 0 2 -
Fashion division 0 5 0 0 5 0 2 0 0 2 -
Saudi Arabia 0 5 0 0 5 0 2 0 0 2 -
Zippy 0 5 0 0 5 0 2 0 0 2 -
Invest. mngmt. 105 0 0 -4 101 6
7		 0 0 -3 6
3		 61%
MaxMat 3
5		 0 0 -2 3
3		 6
3		 0 0 -3 6
0		 63%
Geostar (4) 7
0		 0 0 -2 6
8		 4 0 0 0 4 28%

(1) includesModeloBonjour; (2) includesoutlet; (3) Includesjoint-Ventures; (4) IncludescombinedStar and Geotur stores,resultingfrom thejoint-venture betweenSonaeand RAR.

Shopping centres main highlights (stand-alone figures)

Shopping centres operating review
9M09 9M10 y.o.y 2009 YTD
Assets under management (million euros) (1) 6,145 6,567 6.9% 6,340 3.6%
Real estate NAV (million euros) 1,238 1,253 1.3% 1,228 2.0%
Sierra Investments 689 707 2.5% 731 -3.4%
Sierra Developments 234 172 -26.5% 191 -9.9%
Sierra Brazil 268 331 23.6% 289 14.5%
Others (2) 4
6		 4
3		 -5.6% 1
7		 159.5%
NAV per share (euros) 38.1 38.6 1.3% 37.8 2.0%
Openings & acquisitions (EOP) 1 1 0.0% 1 0.0%
Shopping centres owned/co-owned (EOP) 5
1		 5
3		 3.9% 5
2		 1.9%
GLA owned/co-owned (thousand m2) (3) 2,057 2,081 1.2% 2,059 1.1%
Occupancy rate of GLA owned (%) 96.0% 96.4% 0.4pp 94.5% 1.8pp
Projects under development (EOP) (4) 1
3		 1
1		 -15.4% 1
2		 -8.3%
GLA under development (thousand m2) 596 528 -11.4% 550 -4.0%
Shopping centres managed (EOP) 6
9		 6
9		 0.0% 6
8		 1.5%
GLA under management (thousand m2) 2,280 2,306 1.2% 2,284 1.0%
Total employees 1,146 1,143 -0.3% 1,147 -0.3%
(1) Open market value; (2) NAV of Corporate Centre + Property Management; (3) Gross lettable area i
under construction.		 n operating centres; (4) Projects in planning phase and
Shopping Centres market yields (1)
2009 9M10 YTD 1H10 q.o.q
Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min
Portugal 8.3% 6.5% 6.0% 8.6% 6.7% 6.2% 0.3pp 0.17pp 0.15pp 8.6% 6.7% 6.2% 0pp 0pp 0pp
Spain 9.1% 7.1% 6.4% 9.0% 7.1% 6.5% -0.05pp -0.08pp 0.05pp 9.0% 7.1% 6.5% 0pp-0.01pp 0pp
Italy 7.7% 6.6% 6.0% 7.8% 6.7% 6.1% 0.1pp 0.05pp 0.05pp 7.8% 6.7% 6.1% 0pp 0pp 0pp
Germany 6.3% 6.1% 6.0% 6.3% 6.1% 6.0% 0pp 0pp 0pp 6.3% 6.1% 6.0% 0pp 0pp 0pp
Greece 7.0% 7.0% 7.0% 8.3% 8.3% 8.3% 1.25pp 1.25pp 1.25pp 7.0% 7.0% 7.0% 1.25pp 1.25pp 1.25pp
Romania 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 0pp 0pp 0pp 9.0% 9.0% 9.0% 0pp 0pp 0pp
Brazil 9.5% 8.5% 8.3% 9.5% 8.5% 8.3% 0pp 0pp 0pp 9.5% 8.5% 8.3% 0pp 0pp 0pp

(1) Averageyieldsweighted by the Open Market Valueof Sierra's shoppingcentres.

Shopping Centres financial review (1)

Million euros
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Direct results
Turnover 5
1		 5
8		 14.5% 155 168 8.5%
Investments 3
2		 3
3		 4.1% 9
8		 9
8		 0.5%
Developments 1 3 86.8% 5 5 14.5%
Brazil 5 8 40.1% 1
5		 2
2		 42.8%
Services Business 1
0		 1
1		 14.1% 3
1		 3
2		 4.1%
Asset management 3 3 2.8% 9 8 -14.9%
Property management 7 8 18.1% 2
2		 2
5		 11.8%
Others & eliminations 2 3 61.7% 6 1
0		 70.1%
Recurrent EBITDA 2
7		 3
2		 18.2% 8
0		 9
0		 12.8%
EBITDA 2
7		 3
2		 18.2% 8
0		 9
0		 12.8%
Investments 2
6		 2
6		 0.4% 7
8		 7
7		 -1.5%
Developments -22 -10 52.3% -62 -19 69.1%
Brazil 4 6 58.0% 1
1		 1
8		 59.9%
Services Business 2 3 68.6% 7 8 12.9%
Asset management 1 1 -4.0% 4 2 -46.5%
Property management 1 2 130.9% 3 6 85.2%
Others & eliminations 1
7		 7 -58.6% 4
5		 6 -86.7%-
EBITDA margin 53.5% 55.3% 1.8pp 51.6% 53.6% 2.1pp
Net financial results -12 -11 4.2% -39 -32 17.0%
Current tax -3 -4 -22.9% -10 -11 -10.7%
Direct results 1
2		 1
6		 34.0% 3
1		 4
4		 41.7%
Indirect results
Gains realized on investments 2 0 -77.1% 2 -4 -
Provisions for assets under development 0 -2 - -6 -5 19.3%
VCIDP (2) -15 7 - -152 7 -
-
Deferred tax 1 -7 - 3
0		 -28 -
Indirect results -12 -2 86.0% -126 -30 76.5%
Total net results
Total net results 0 1
4		 - -94 1
5		 -4.3%
Attributable to equity holders 0 1
4		 - -94 1
5		 -4%
Net debt including shareholder loans 1,915 1,684 -12.1% 1,915 1,684 -12.1%
Net debt 1,305 1,143 -12.4% 1,305 1,143 -12.4%
Loan to Value 50.2% 46.8% -3.4pp 50.2% 46.8% -3.4pp
Net debt/EBITDA (last 12 months) 10.4 x 6.1 x -4.3x 10.4 x 6.1 x -4.3x
EBITDA/net interest expenses (last 12 months) 0.6 x 0.7 x 0.1x 0.6 x 0.7 x 0.1x
Net debt/invested capital 56.2% 52.5% -3.7pp 56.2% 52.5% -3.7pp
CAPEX 4
8		 1
2		 -75.7% 117 6
6		 -43.6%
(1) Quarterly numbers are unaudited and based on Sierra's management accounts (fully proportional base;) (2) Value created on investment and development

(1) Quarterly numbers are unaudited and based on Sierra's management accounts (fully proportional base;) (2) Value created on investment and development properties.

Telecommunications main highlights (stand-alone figures)

Telecomunications operating review (1)
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Mobile
Customers (EOP) ('000) 3,327 3,541 6.4% 3,327 3,541 6.4%
Data as % Service Revenues 28.1% 30.3% 2.2pp 27.8% 30.0% 2.2pp
ARPU (euros) (2) 15.2 13.9 -8.8% 15.0 13.8 -8.0%
Wireline
Total accesses (EOP) ('000) 514 436 -15.1% 514 436 -15.1%
Direct accesses (EOP) ('000) 426 363 -14.9% 426 363 -14.9%
Direct access as % customer revenues 75.9% 69.0% -6.9pp 77.0% 71.5% -5.5pp
SSI
IT service revenues / employee ('000 euros) 30.9 32.3 4.5% 93.6 94.5 1.0%
Total employees 2,003 2,070 3.3% 2,003 2,070 3.3%

(1) Quarterly numbers are unaudited; (2) Average revenues per user.

Telecommunications financial review (1) Million euros

3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Turnover 235 234 -0.5% 717 684 -4.5%
Mobile 155 153 -1.1% 453 441 -2.8%
Wireline 6
2		 6
0		 -2.8% 186 181 -3.1%
SSI 3
3		 3
5		 4.5% 116 102 -11.5%
Others & eliminations -15 -14 5.4% -39 -40 -2.3%
Other revenues 1 2 137.2% 3 5 49.0%
Recurrent EBITDA 4
5		 4
9		 9.9% 137 149 9.1%
EBITDA 4
5		 4
9		 9.9% 137 149 9.1%
Mobile 4
2		 4
8		 13.4% 131 142 8.5%
Wireline 2 1 -64.1% 3 3 -5.9%
SSI 2 2 0.6% 6 6 0.9%
Others & eliminations -1 -1 -12.1% -4 -3 36.7%
EBITDA margin (%) 19.2% 21.2% 2pp 19.1% 21.8% 2.7pp
EBIT 5 1
8		 - 1
8		 5
1		 187.0%
Net financial results -4 -3 21.0% -11 -6 40.5%
Total net income 1 1
0		 - 3 3
0		 -
Attributable to equity holders 1 1
0		 - 3 3
0		 -
Excluding the securitization transaction:
Net debt including shareholder loans 386 354 -8.3% 386 354 -8.3%
Net debt 386 354 -8.3% 386 354 -8.3%
Net debt/EBITDA (last 12 months) 2.1 x 1.9 x -0.3x 2.1 x 1.9 x -0.3x
EBITDA/net interest expenses (last 12 months) 11.7 x 23.1 x 11.5x 11.7 x 23.1 x 11.5x
Net debt/invested capital 51.3% 45.9% -5.4pp 51.3% 45.9% -5.4pp
CAPEX 5
0		 3
2		 -36.9% 103 8
8		 -15.3%
Operating CAPEX (2) 3
5		 3
1		 -11.2% 8
8		 8
7		 -0.8%
EBITDA minus Operating CAPEX 1
0		 1
8		 88.2% 4
9		 6
2		 27.0%
Free Cash Flow 2
1		 4 -81.6% 3 9 190.9%
(1) Quarterly numbers are unaudited; (2) Operating CAPEX excludes financial investments, provisions for dismantling of sites and other non operational

(1) Quarterly numbers are unaudited; (2) Operating CAPEX excludes financial investments, provisions for dismantling of sites and other non operational investments.

Investment management main highlights (stand-alone figures)

Investment management unit (1)
Million euros
3Q09 3Q10 y.o.y 9M09 9M10 y.o.y
Turnover 5
6		 6
0		 6.3% 147 159 8.0%
Recurrent EBITDA 2 2 16.2% 2 4 55.6%
EBITDA 3
1		 2 -92.3% 3
1		 4 -88.3%
EBIT 3
0		 1 -98.2% 2
8		 -2 -
Net debt including shareholder loans 9
0		 7
4		 -18.0% 9
0		 7
4		 -18.0%
Net debt 8 5 -41.3% 8 5 -41.3%
CAPEX 2
4		 1
1		 -56.0% 3
2		 1
3		 -59.5%
Total employees 1,040 1,119 7.6% 1,040 1,119 7.6%

(1) Quarterly numbers areunaudited.

Condensed consolidated financial statements

CONDENSED CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2010 AND 2009 AND AT 31 DECEMBER 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)

(Amounts expressed in euro)

ASSETS Notes 30 September 2010 30 September 2009 31 December 2009
(Note 1)
NON-CURRENT ASSETS:
Tangible assets 9 2,731,767,364 2,752,658,382 2,781,177,575
Intangible assets 10 457,295,105 440,730,285 467,315,297
Investment properties 11 1,717,990,241 1,826,209,830 1,796,470,818
Goodwill 12 734,272,294 706,006,096 728,945,475
Investments in associates 6 84,069,078 57,390,084 74,649,393
Other investments 7 and 13 11,824,326 19,942,309 18,127,492
Deferred tax assets 16 235,181,133 218,905,557 230,214,508
Other non-current assets 14 45,300,662 21,786,559 21,176,312
Total Non-Current Assets 6,017,700,203 6,043,629,102 6,118,076,870
CURRENT ASSETS:
Inventories 639,067,374 616,501,415 603,003,189
Trade accounts receivable and other current assets 15 542,076,127 683,180,767 610,516,925
Investments 13 48,588,558 56,361,190 57,679,031
Cash and cash equivalents 17 134,362,275 104,785,106 172,229,871
Total Current Assets 1,364,094,334 1,460,828,478 1,443,429,016
Assets available for sale - 5,782,499 -
TOTAL ASSETS 7,381,794,537 7,510,240,079 7,561,505,886
EQUITY AND LIABILITIES
EQUITY:
Share capital 18 2,000,000,000 2,000,000,000 2,000,000,000
Own shares (135,679,489) (136,911,861) (136,911,861)
Reserves and retained earnings (704,852,897) (743,989,310) (733,683,436)
Profit/(Loss) for the period attributable to the equity holders of the Parent Company 97,852,873 31,829,547 93,760,817
Equity attributable to the equity holders of the Parent Company 1,257,320,487 1,150,928,376 1,223,165,520
Equity attributable to non-controlling interests 19 506,228,473 435,355,599 477,968,755
TOTAL EQUITY 1,763,548,960 1,586,283,975 1,701,134,275
LIABILITIES:
NON-CURRENT LIABILITIES:
Loans 20 3,126,358,370 3,163,869,958 2,943,987,134
Other non-current liabilities 22 191,214,931 237,465,598 240,267,403
Deferred tax liabilities 16 368,572,648 324,869,332 336,301,701
Provisions 25 58,070,949 63,464,922 50,607,367
Total Non-Current Liabilities 3,744,216,898 3,789,669,810 3,571,163,605
CURRENT LIABILITIES:
Loans 20 147,002,650 380,014,162 313,554,408
Trade creditors and other current liabilities 24 1,724,937,592 1,752,475,055 1,973,035,847
Provisions 25 2,088,437 1,797,077 2,617,751
Total Current Liabilities 1,874,028,679 2,134,286,294 2,289,208,006
TOTAL LIABILITIES 5,618,245,577 5,923,956,104 5,860,371,611
TOTAL EQUITY AND LIABILITIES 7,381,794,537 7,510,240,079 7,561,505,886

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)

(Amounts expressed in euro)

(Amounts expressed in euro)
Notes t
h Quarter
3
2010		 t
h Quarter
3
2009		 30 September 2010 30 September 2009
Sales 1,212,544,279 1,168,373,901 3,422,308,853 3,232,267,508
Services rendered 296,624,058 289,530,321 863,363,543 833,873,326
Value created on investment properties 11 7,349,803 (12,470,962) 3,391,846 (112,829,032)
Investment income 1,000,427 30,044,604 5,890,703 34,503,669
Financial income 2,281,490 4,961,844 9,073,419 13,049,256
Other income 100,318,030 80,063,665 317,592,429 297,629,030
Cost of goods sold and materials consumed
Changes in stocks of finished goods and work in progress		 (931,604,057)
(176,378)		 (915,044,684)
-		 (2,669,665,305)
120,119		 (2,564,504,395)
-
External supplies and services (289,052,678) (287,750,013) (845,358,448) (822,262,912)
Staff costs (167,381,192) (160,920,523) (511,516,888) (482,973,783)
Depreciation and amortisation 9 and 10 (71,866,576) (76,218,947) (217,960,920) (221,370,993)
Provisions and impairment losses (7,610,094) (4,164,180) (25,080,145) (20,316,978)
Financial expense (28,987,259) (30,900,204) (86,892,611) (111,222,916)
Other expenses
Share of results of associated undertakings		 6 (32,686,281)
(528,801)		 (17,902,702)
(900,831)		 (83,715,534)
(803,418)		 (65,890,733)
(3,856,066)
Profit/(Loss) before taxation 90,224,771 66,701,289 180,747,643 6,094,981
Taxation 28 (21,912,949) (8,117,785) (64,073,429) 2,185,189
Profit/(Loss) after taxation
Attributable to:		 29 68,311,822 58,583,504 116,674,214 8,280,170
Equity holders of the Parent Company 56,913,700 59,949,851 97,852,873 31,829,547
Non-controlling interests 19 11,398,122 (1,366,347) 18,821,341 (23,549,377)
Profit/(Loss) per share
Basic
Diluted		 30
30		 0.049270
0.049107		 0.032092
0.032092		 0.052341
0.052147		 0.017043
0.017043

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)

(Amounts expressed in euro)

3th Quarter
2010		 3th Quarter
2009		 30 September 2010 30 September 2009
Net Profit / (Loss) for the period 68,311,822 58,583,504 116,674,214 8,280,170
Exchange differences arising on translation of foreign operations (9,395,378) 9,958,661 14,998,024 29,502,119
Participation in other comprehensive income (net of tax) related to associated
companies included in consolidation by the equity method		 (1,432,673) - (3,794,377) 1,544,487
Changes on fair value of available-for-sale financial assets (664,000) 4,316,000 (6,474,000) 8,134,000
Changes in hedge and fair value reserves (2,098,270) (2,504,449) (9,060,175) (15,625,587)
Deferred related to changes in fair values reserves (232,084) (40,345) 69,239 981,953
Others 464,984 - (297,916) -
Other comprehensive income for the period (13,357,421) 11,729,867 (4,559,205) 24,536,972
Total comprehensive income for the period 54,954,401 70,313,371 112,115,009 32,817,142
Attributable to:
Equity holders of Parent Company 46,644,022 70,311,362 93,847,109 55,808,422
Non controlling interests 8,310,379 2,009 18,267,900 (22,991,280)

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIODS ENDED 31 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)

(Amounts expressed in euro)

Attributable to Equity Holders of Parent Company
Reserves and Retained Earnings
Share
Capital		 Own
Shares		 Legal
Reserve		 Currency
Translation
Reserve		 Hedging
Reserve		 Investments
Fair Value
Reserve		 Other Reserves
and Retained
Earnings		 Total Net
Profit/(Loss)		 Total Minority
Interests		 Total
Equity
Balance as at 1 January 2009 2,000,000,000 (138,568,275) 161,705,974 (4,251,321) (1,976,346) (11,232,990) (934,717,935) (790,472,618) 80,035,669 1,150,994,776 411,549,101 1,562,543,877
Total compreensive income for the period - - - 28,454,390 8,134,000 (12,609,515) - 23,978,875 31,829,547 55,808,422 (22,991,280) 32,817,142
Appropriation of profit of 2008:
Transfer to legal reserves and retained earnings - - 1,523,608 - - - 78,512,061 80,035,669 (80,035,669) - - -
Dividends distributed - - - - - - (56,450,634) (56,450,634) - (56,450,634) - (56,450,634)
Disposal of own shares/ attribution to employees - 1,656,414 - - - - - - - 1,656,414 - 1,656,414
Partial Disposal of affiliated companies - - - - - - - - - - 60,659,788 60,659,788
Others - - - - - - (1,080,602) (1,080,602) - (1,080,602) 2,375,529 1,294,927
Balance as at 31 September 2009 2,000,000,000 (136,911,861) 163,229,582 24,203,069 6,157,654 (23,842,505) (913,737,110) (743,989,310) 31,829,547 1,150,928,376 435,355,599 1,586,283,975
Saldo em 1 de Janeiro de 2010 2,000,000,000 (136,911,861) 163,229,582 27,670,569 11,801,654 (21,082,667) (915,302,573) (733,683,436) 93,760,817 1,223,165,520 477,968,755 1,701,134,275
Total compreensive income for the period - - - 12,089,461 (6,474,000) (7,155,146) (2,466,079) (4,005,764) 97,852,873 93,847,109 18,267,900 112,115,009
Appropriation of profit of 2009:
Transfer to legal reserves and retained earnings - - 4,586,452 - - - 89,174,365 93,760,817 (93,760,817) - - -
Dividends distributed - - - - - - (59,264,042) (59,264,042) - (59,264,042) (1,752,069) (61,016,111)
Disposal of own shares/ attribution to employees - 1,232,372 - - - - (693,484) (693,484) - 538,888 (57,894) 480,994
Share base payments - - - - - - - - - - - -
Partial Disposal of affiliated companies - - - - - - 748,000 748,000 - 748,000 (877,017) (129,017)
Capital Increases - - - - - - - - - - 15,287,888 15,287,888
Others - - - - - - (1,714,989) (2,408,472) - (2,408,472) (2,666,984) (5,075,456)
Balance as at 30 September 2010 2,000,000,000 (135,679,489) 167,816,034 39,760,030 5,327,654 (28,237,813) (889,518,802) (704,852,897) 97,852,873 1,257,320,487 506,228,473 1,763,548,960
The accompanying notes are part of these condensed consolidated financial statements.
The Board of Directors
27

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)

(Amounts expressed in euro)

Notes 3th Quarter
2010		 3th Quarter
2009		 30 September 2010 30 September 2009
OPERATING ACTIVITIES
Net cash flow from operating activities (1) 153,231,604 200,092,438 222,103,951 336,906,496
INVESTMENT ACTIVITIES
Cash receipts arising from:
Investments 3,214,294 30,404,892 59,242,424 32,559,441
Tangible, intangible assets and investments properties 35,976,477 662,025 63,811,802 9,307,264
Dividends
Others		 356,023 631,207 1,267,496 840,210
1,034,842
40,581,636		 1,175,550
32,873,674		 17,234,629
141,556,351		 28,469,711
71,176,626
Cash Payments arising from:
Investments (9,048,399) (23,078,373) (20,104,156) (45,988,831)
Tangible, intangible assets and investments properties (90,870,892) (167,969,756) (315,146,942) (472,620,260)
Others (484,805) (6,601,181) (846,596) (20,330,839)
(100,404,096) (197,649,310) (336,097,694) (538,939,930)
Net cash used in investment activities (2) (59,822,460) (164,775,636) (194,541,343) (467,763,304)
FINANCING ACTIVITIES
Cash receipts arising from:
Loans obtained 1,150,124,478 3,122,084,464 4,500,305,077 9,283,981,490
Capital increases, shareholder's loans and share premiums 67,885 22,312,407 71,500 22,312,407
Others - 23,373,137 - 69,473,192
Cash Payments arising from: 1,150,192,363 3,167,770,008 4,500,376,577 9,375,767,089
Loans obtained (1,193,222,401) (3,245,631,783) (4,401,625,689) (9,161,191,995)
Interest and similar charges (27,721,925) (34,734,070) (81,909,450) (134,043,077)
Dividends (431,774) (108,806) (64,742,809) (60,279,134)
Others 13,452,456 (339,968) (10,015,932) (5,427,515)
(1,207,923,644) (3,280,814,627) (4,558,293,880) (9,360,941,721)
Net cash used in financing activities (3) (57,731,281) (113,044,619) (57,917,303) 14,825,368
Net increase in cash and cash equivalents (4) = (1) + (2) + (3) 35,677,863 (77,727,817) (30,354,695) (116,031,440)
Effect of foreign exchange rate 673,296 (1,629,566) (976,082) (2,082,254)
Cash and cash equivalents at the beginning of the period 17 84,083,073 105,115,053 148,466,253 142,965,989
Cash and cash equivalents at the end of the period 17 119,087,640 29,016,803 119,087,640 29,016,803
The accompanying notes are part of these condensed consolidated financial statements.
The Board of Directors
28

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS FOR THE PERIOD ENDED

30 September 2010

(Amounts expressed in euro)

(Translation of condensed consolidated financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

1 INTRODUCTION

SONAE, SGPS, SA ("Sonae Holding"), has its head office at Lugar do Espido, Via Norte, Apartado 1011, 4471-909 Maia, Portugal, and is the parent company of a group of companies, as detailed in Notes 4 to 7 ("Sonae"). Sonae`s operations and operating segments are described in Note 32.

Consolidation of business activities: Lazam/MDS

The process of acquisition of Lazam/MDS was only concluded in the second half of 2009, and, as disclosed in the financial statements for the period ended 31 December 2009, the process of imputation of fair value was not completed at that date. This process was completed on 30 June 2010, and a retrospective correction of the accounting effects of this business combination was made as required by IFRS 3 – Business Combinations. Consequently the consolidated balance sheet as at 31 December 2009 was restated to reflect the adjusted values of assets and liabilities. The details of these changes are disclosed in note 8.

2 PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those followed in the preparation of annual financial statements for the year ended 31 December 2009, with the exception of those described in note 3.

2.1. Basis of preparation

Interim financial statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

The accompanying condensed consolidated financial statements have been prepared from the books and accounting records of the companies included in the consolidation (Notes 4 to 6) on a going concern basis and under the historical cost convention, except for investment properties and financial instruments which are stated at fair value.

3 CHANGES IN ACCOUNTING POLICIES

During the period it was adopted a set of accounting standards, interpretations, amendments and revisions issued in previous periods and whose implementation became mandatory during the financial year 2010 as disclosed in the financial statements presented for the period ended as at 31 December 2009 and which, except as described below, didn't have any significant impacts on the financial statements as at 30 September 2010.

During the period it has been adopted for the first time the revised version of IFRS 3 – Business Combinations (revised 2008) and IAS 27 – Consolidated and separate financial statements (revised 2008).

These changes brought some modifications in the accounting policies of recording business combinations, in particular:

  • (a) the calculation of goodwill and the measurement of non-controlling interests (previously referred to as non-controlling interests): introduced the option, on transaction-by-transaction basis, of calculating the value of non-controlling interests at fair value of assets and liabilities acquired, or their share of the identifiable net assets of the acquire. Additionally, goodwill is now calculated as the difference between the acquisition price of the participation plus the non-controlling interests and the fair value of the assets and liabilities acquired;
  • (b) the recognition and subsequent accounting requirements for contingent consideration: whereas, under the previous version of the Standard, contingent consideration was recognized at the acquisition date only if it met probability and reliably measurable criteria, under the revised Standard that consideration for the acquisition always includes the fair value of any contingent consideration. Once the fair value of the contingent consideration for the acquisition date has been determined, subsequent adjustments are made against goodwill only to the extent that they reflect fair value at the acquisition date, and they occur within the 'measurement period' (a maximum of 12 months form the acquisition date). Under the previous version of the Standard, adjustments to consideration were always made against goodwill;
  • (c) the accounting treatment of acquisition-related costs: they are generally recorded as expenses in the periods in which they are incurred, and don't influence the acquisition price;
  • (d) the accounting of purchase transactions of entities already controlled by the entity and sale transactions that don't imply the loss of control: until the adoption of the revised version of IAS 27 an increase in equity interests in a subsidiary implied the calculation of goodwill, and a loss on the percentage of control would give rise to a profit or loss in that period. With this new standard, transactions whereby the parent entity acquires further equity interests or disposes of equity interest but without losing control, are accounted for as equity transactions and only affect the company's equity, there is no recognition of goodwill or profit or loss in the period;
  • (e) the calculation of the profit or loss associated with disposal of equity interests in a subsidiary with loss of control and subsequent accounting for a residual interest: according to the new version of the standard as a result of the loss of control, the assets and liabilities of the disposed subsidiary should be derecognised and any interest retained on the entity should be remeasured at fair value. The value received as a result of the sale plus the effect of remeasurement is registered as profit or loss of the period.

4 GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

Group companies included in the consolidated financial statements, their head offices and percentage of share capital held by Sonae as at 30 September 2010 and 31 December 2009 are as follows:

Percentage of capital held
30 September 2010 31 December 2009
COMPANY Head Office Direct Total Direct Total
Sonae - SGPS, S.A. Maia HOLDING HOLDING HOLDING HOLDING
Retail
Arat Inmuebles, SA a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Azulino Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
BB Food Service, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Bertimóvel - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Best Offer - Prestação de Informações por
Internet, SA		 a) Maia 100.00% 100.00% 100.00% 100.00%
Bikini, Portal de Mulheres, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Bom Momento - Comércio Retalhista, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Canasta - Empreendimentos Imobiliários, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Carnes do Continente - Indústria e Distribuição
Carnes, SA		 a) Santarém 100.00% 100.00% 100.00% 100.00%
Chão Verde - Sociedade de Gestão Imobiliária,
SA		 a) Maia 100.00% 100.00% 100.00% 100.00%
Citorres - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Contibomba - Comércio e Distribuição de
Combustíveis, SA		 a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Contimobe - Imobiliária de Castelo de Paiva,
SA		 a) Castelo de Paiva 100.00% 100.00% 100.00% 100.00%
Continente Hipermercados, SA a) Lisbon 100.00% 100.00% 100.00% 100.00%
Cumulativa - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Difusão - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Edições Book.it, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Efanor - Design e Serviços, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Estevão Neves - Hipermercados da Madeira,
SA		 a) Madeira 100.00% 100.00% 100.00% 100.00%
Farmácia Selecção, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
3) Fashion Division, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Fozimo - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Fozmassimo - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Fundo de Investimento Imobiliário Fechado
Imosede		 a) Maia 54.55% 54.55% 54.55% 54.55%
Fundo de Investimento Imobiliário Fechado
Imosonae Dois		 a) Maia 100.00% 100.00% 100.00% 100.00%
Global S - Hipermercado, Lda a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Good and Cheap - Comércio Retalhista, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Hipotética - Comércio Retalhista, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Sonaerp – Retail Properties, SA a) Porto 100.00% 100.00% 100.00% 100.00%
Igimo - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Iginha - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Imoconti - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Imoestrutura - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Imomuro - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Imoresultado - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Imosistema - Sociedade Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Infofield - Informática, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Just Sport - Comércio de Artigos de Desporto,
SA		 a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Marcas MC, Zrt a) Budapeste
(Hungary)		 100.00% 100.00% 100.00% 100.00%
MJLF - Empreendimentos Imobiliários, SA a) Maia 100.00% 100.00% 100.00% 100.00%
MC - SGPS, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Modalfa - Comércio e Serviços, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Modalloop – Vestuário e Calçado, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Modelo Continente Hipermercados, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Modelo Continente Seguros - Sociedade
Mediação, SA		 a) Porto 100.00% 87.50% 100.00% 87.50%
Modelo Hiper Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Modelo Hipermercados Trading, SA a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Modelo.com - Vendas p/Correspond., SA a) Maia 100.00% 100.00% 100.00% 100.00%
NA - Comércio de Artigos de Desporto, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
NA - Equipamentos para o Lar, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Peixes do Continente - Indústria e Distribuição
de Peixes, SA		 a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Pharmacontinente - Saúde e Higiene, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Pharmaconcept – Actividades em Saúde, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Predicomercial - Promoção Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Selifa - Empreendimentos Imobiliários de Fafe,
SA		 a) Maia 100.00% 100.00% 100.00% 100.00%
Sempre à Mão - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Sesagest - Proj.Gestão Imobiliária, SA a) Porto 100.00% 100.00% 100.00% 100.00%
Socijofra - Sociedade Imobiliária, SA a) Gondomar 100.00% 100.00% 100.00% 100.00%
Sociloures - Sociedade Imobiliária, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Soflorin, BV a) Amesterdam (The
Netherlands)		 100.00% 100.00% 100.00% 100.00%
Solaris Supermercados, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Sonae Capital Brazil, Lda a) São Paulo (Brazil) 100.00% 100.00% 100.00% 100.00%
Sonae Center Serviços II, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Sonae Investimentos, SGPS, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
SIAL Participações, Ltda a) São Paulo (Brazil) 100.00% 100.00% 100.00% 100.00%
Sonae Retalho España - Servicios Generales,
SA		 a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Sonae Specialized Retail, SGPS, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Sondis Imobiliária, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Sontária - Empreendimentos Imobiliários, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Sonvecap, BV a) Amesterdam (The
Netherlands)		 100.00% 100.00% 100.00% 100.00%
Sport Zone - Comércio de Artigos de
Desporto, SA		 a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Sport Zone España - Comércio de Articulos de
Deporte, SA		 a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Têxtil do Marco, SA a) Marco de
Canaveses		 92.76% 92.76% 80.37% 80.37%
Tlantic Portugal - Sistemas de Informação, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Tlantic Sistemas de Informação, Ltda a) Porto Alegre
(Brazil)		 100.00% 100.00% 100.00% 100.00%
Todos os Dias - Com. Ret. Expl. C. Comer., SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Valor N, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Well W - Electrodomésticos e Equipamentos,
SA		 a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Worten - Equipamento para o Lar, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Worten España Distribución, S.L. a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Zippy – Comércio e Distribuição, SA a) Matosinhos 100.00% 100.00% 100.00% 100.00%
Zippy - Comércio Y Distribución, SA a) Madrid (Spain) 100.00% 100.00% 100.00% 100.00%
Telecommunications
Be Artis - Concepção, Construção e Gestão de
Redes de Comunicações, SA		 a) Maia 100.00% 54.39% 100.00% 54.23%
Be Towering – Gestão de Torres de
Telecomunicações, SA		 a) Maia 100.00% 54.39% 100.00% 54.23%
Cape Tecnologies Limited a) Dublin (Ireland) 100.00% 54.39% 100.00% 54.23%
Digitmarket - Sistemas de Informação, SA a) Maia 75.10% 40.85% 75.10% 40.72%
Lugares Virtuais, SA a) Maia 100.00% 54.39% 100.00% 54.23%
M3G - Edições Digitais, SA a) Maia 100.00% 54.39% 100.00% 54.23%
Magma - Operação de Titularização de
Créditos		 c) Portugal 100.00% 54.39% 100.00% 54.23%
Mainroad Serviços em Tecnologias de
Informação, SA		 a) Maia 100.00% 54.39% 100.00% 54.23%
Miauger - Org. Gestão Leilões Electrónicos, SA a) Maia 100.00% 54.39% 100.00% 54.23%
Per-Mar - Sociedade de Construções, SA a) Maia 100.00% 54.39% 100.00% 54.23%
Praesidium Services Limited a) Berkshire (U.K.) 100.00% 54.39% 100.00% 54.23%
Público - Comunicação Social, SA a) Porto 100.00% 54.39% 100.00% 54.23%
Saphety Level - Trusted Services, SA a) Maia 86.99% 47.32% 86.99% 47.17%
Sonaecom BV a) Amesterdam (The
Netherlands)		 100.00% 54.39% 100.00% 54.23%
Sonae Telecom, SGPS, SA a) Maia 100.00% 54.39% 100.00% 54.23%
Sonaecom - Serviços de Comunicação, SA a) Maia 100.00% 54.39% 100.00% 54.23%
Sonaecom - Sistemas de Informação, SGPS,
SA		 a) Maia 100.00% 54.39% 100.00% 54.23%
1) Sonaecom - Sistemas de Información España,
SL		 a) Madrid 100.00% 54.39% - -
Sonaecom, SGPS, SA a) Maia 55.42% 54.39% 55.12% 54.23%
Sonaetelecom, BV a) Amesterdam (The
Netherlands)		 100.00% 54.39% 100.00% 54.23%
Tecnológica Telecomunicações, Ltda a) Rio de Janeiro
(Brazil)		 99.99% 54.34% 99.99% 54.17%
We Do Consulting - Sistemas de Informação,
SA		 a) Maia 100.00% 54.39% 100.00% 54.23%
We Do Brazil Soluções Informáticas, Ltda a) Rio de Janeiro
(Brazil)		 99.91% 54.34% 99.91% 54.28%
We Do Poland Sp.Z.o.o. a) Posnan (Poland) 100.00% 54.39% 100.00% 54.23%
We Do Tecnologies Americas, Inc. a) Miami (USA) 100.00% 54.39% 100.00% 54.23%
We Do Technologies Australia PTY Limited a) Australia 100.00% 54.39% 100.00% 54.23%
We Do Tecnologies BV a) Amesterdam (The
Netherlands)		 100.00% 54.39% 100.00% 54.23%
We Do Technologies BV – Sucursal Malásia a) Kuala Lumpur
(Malaysia)		 100.00% 54.39% 100.00% 54.23%
We Do Technologies Chile, SpA a) Santiago (Chile) 100.00% 54.39% 100.00% 54.23%
We Do Technologies Egypt Limited Liability
Company		 a) Cairo (Egypt) 100.00% 54.39% 100.00% 54.23%
We Do Technologies Mexico S. de RL a) Mexico City 100.00% 54.39% 100.00% 54.23%
1) We Do Technologies Panamá SA a) Panama City 100.00% 54.39% - -
1) We Do Technologies Singapore PTE. LDT a) Singaporea 100.00% 54.39% - -
We Do Technologies (UK) Limited a) Berkshire (U.K.) 100.00% 54.39% 100.00% 54.23%
Investment Management
ADD Avaliações Engenharia de Avaliações e
Perícias, Ltda		 a) Brazil 100.00% 50.00% 100.00% 50.00%
ADDmakler Administração e Corretagem de
Seguros, Ltda		 a) Brazil 99.98% 50.00% 99.98% 50.00%
ADDmakler Administradora, Corretora de
Seguros Partic. Ltda		 a) Brazil 100.00% 50.00% 100.00% 50.00%
Fontana Corretora de Seguros Ltda a) Brazil 99.99% 50.01% 99.99% 50.01%
Herco Consultoria de Risco e Corretora de
Seguros, Ltda		 a) Brazil 100.00% 50.01% 100.00% 50.01%
Larim Corretora de Resseguros Ltda a) Brazil 99.99% 50.01% 99.99% 50.01%
Lazam/mds Correctora Ltda a) Brazil 100.00% 50.01% 100.00% 50.01%
MDS - Corretor de Seguros, SA a) Porto 100.00% 50.01% 100.00% 50.01%
MDS, SGPS, SA a) Maia 50.01% 50.01% 50.01% 50.01%
MDS Consultores, SA a) Maia 100.00% 50.01% 100.00% 50.01%
Miral Administração e Corretagem de
Seguros, Ltda		 a) Brazil 100.00% 50.01% 100.00% 50.01%
Modelo - Distribuição de Materiais de
Construção, SA		 b) Maia 50.00% 50.00% 50.00% 50.00%
RSI Corretora de Seguros, Ltda a) Brazil 100.00% 50.01% 100.00% 50.01%
4) Quorum Corretora de Seguros, Ltda a) Brazil 100.00% 50.01% - -
Terra Nossa Corretora de Seguros, Ltda a) Brazil 100.00% 50.01% 100.00% 50.01%
Others
Libra Serviços, Lda a) Funchal 100.00% 100.00% 100.00% 100.00%
Sonae Investments, BV a) Amesterdam (The
Netherlands)		 100.00% 100.00% 100.00% 100.00%
Sonae RE, SA a) Luxembourg 99.92% 99.92% 99.92% 99.92%
Sonaecenter Serviços, SA a) Maia 100.00% 100.00% 100.00% 100.00%
Sonaegest-Soc.Gest.Fundos Investimentos,
SA		 a) Maia 80.00% 70.00% 80.00% 70.00%
Amesterdam (The

1) Companies incorporated in the period;

2) Companies disposed in the period;

3) Ex - Inventory - Acessórios de Casa, SA;

  • a) Majority of voting rights;
  • b) Management control;
  • c) Control determined in accordance with SIC 12 Special purpose entities.

These group companies are consolidated using the full consolidation method.

5 JOINTLY CONTROLLED COMPANIES

Jointly controlled companies included in the consolidated financial statements, their head offices and the percentage of share capital held by Sonae as at 30 September 2010 and 31 December 2009 are as follows:

Percentage of capital held
30 September 2010 31 December 2009
COMPANY Head Office Direct Total Direct Total
Shopping Centres
3DO Holding GmbH Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
3DO Shopping Centre GmbH Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
3shoppings - Holding, SGPS, SA Maia 100.00% 25.05% 100.00% 25.05%
1) Adlands BV Amesterdam (The
Netherlands)		 50.00% 25.00% - -
Aegean Park, SA Athens (Greece) 100.00% 25.00% 100.00% 25.00%
Airone - Shopping Centre, Srl Milan (Italy) 100.00% 25.05% 100.00% 25.05%
ALEXA Administration GmbH Berlin (Germany) 100.00% 25.00% 100.00% 25.00%
ALEXA Holding GmbH Dusseldorf
(Germany)		 50.00% 25.00% 50.00% 25.00%
2) Alexa Asset GmbH & Co Dusseldorf
(Germany)		 50.00% 25.00% 50.00% 25.00%
ALEXA Shopping Centre GmbH Dusseldorf
(Germany)		 100.00% 25.00% 100.00% 25.00%
Algarveshopping - Centro Comercial, SA Maia 100.00% 25.05% 100.00% 25.05%
3) Arp Alverca Retail Park, SA Maia 50.00% 25.00% 50.00% 25.00%
Arrábidashopping - Centro Comercial, SA Maia 50.00% 12.53% 50.00% 12.53%
Avenida M-40, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
7) Beralands BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Cascaishopping - Centro Comercial, SA Maia 50.00% 12.53% 50.00% 12.53%
Cascaishopping Holding I, SGPS, SA Maia 100.00% 25.05% 100.00% 25.05%
4) CCCB Caldas da Rainha – Centro
Comercial,SA		 Maia 100.00% 50.00% 100.00% 50.00%
Centro Colombo - Centro Comercial, SA Maia 100.00% 12.53% 100.00% 12.53%
Centro Vasco da Gama - Centro Comercial, SA Maia 50.00% 12.53% 50.00% 12.53%
Clérigoshopping - Gestão do Centro
Comercial, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Coimbrashopping - Centro Comercial, SA Maia 100.00% 25.05% 100.00% 25.05%
Colombo Towers Holding, BV The Hague (The
Netherlands)		 50.00% 25.00% 50.00% 25.00%
Craiova Mall BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Dortmund Tower GmbH Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
Dos Mares - Shopping Centre, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
Dos Mares - Shopping Centre, SA Madrid (Spain) 100.00% 25.05% 100.00% 25.05%
El Rosal Shopping, SA Madrid (Spain) 70.00% 35.00% 70.00% 35.00%
Estação Viana - Centro Comercial, SA Viana do Castelo 100.00% 25.05% 100.00% 25.05%
Freccia Rossa - Shopping Centre, Srl Milan (Italy) 50.00% 25.00% 50.00% 25.00%
Fundo I.I . Parque Dom Pedro Shopping
Center, SA		 São Paulo (Brazil) 50.00% 3.99% 50.00% 3.99%
Fundo Investimento Imob. Shopping Parque
D. Pedro Shopping, SA		 São Paulo (Brazil) 100.00% 21.27% 100.00% 21.25%
Gaiashopping I - Centro Comercial, SA Maia 50.00% 12.53% 50.00% 12.53%
Gaiashopping II - Centro Comercial, SA Maia 100.00% 12.53% 100.00% 12.53%
Gli Orsi 1 Shopping Centre, Srl Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Guimarãeshopping - Centro Comercial, SA Maia 100.00% 25.05% 100.00% 25.05%
Harvey Dos Iberica, SL Madrid (Spain) 50.00% 12.53% 50.00% 12.53%
Le Terrazze – Shopping Centre 1, Srl Milan (Italy) 50.00% 25.00% 50.00% 25.00%
Iberian Assets, SA Madrid (Spain) 49.78% 12.48% 49.78% 12.48%
Inparsa - Gestão de Galeria Comerc., SA Maia 100.00% 50.00% 100.00% 50.00%
Ioannina Development of Shopping Centres,
SA		 Athens (Greece) 100.00% 50.00% 100.00% 50.00%
6) KLC Holdings XII, SA Luxembourg 100.00% 50.00% 100.00% 50.00%
La Farga - Shopping Centre, SL Madrid (Spain) 100.00% 12.48% 100.00% 12.48%
Larissa Development of Shopping Centres, SA Athens (Greece) 100.00% 25.00% 100.00% 25.00%
5)10) LCC Leiriashopping – Centro Comercial, SA Maia 100.00% 50.00% 100.00% 50.00%
6) Lembo Services Ltd Cyprus 100.00% 50.00% 100.00% 50.00%
Loop 5 - Shopping Centre Gmbh Dusseldorf
(Germany)		 50.00% 25.00% 50.00% 25.00%
Luz del Tajo - Centro Comercial, SA Madrid (Spain) 100.00% 25.05% 100.00% 25.05%
Luz del Tajo, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
Madeirashopping - Centro Comercial, SA Funchal (Madeira) 50.00% 12.53% 50.00% 12.53%
Maiashopping - Centro Comercial, SA Maia 100.00% 25.05% 100.00% 25.05%
MC Property Management, SA Athens (Greece) 75.00% 18.75% 75.00% 18.75%
Münster Arkaden, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
Norte Shopping Retail and Leisure Centre, BV Amesterdam (The
Netherlands)		 50.00% 12.53% 50.00% 12.53%
Norteshopping - Centro Comercial, SA Maia 100.00% 12.53% 100.00% 12.53%
Pantheon Plaza BV Amesterdam (The
Netherlands)		 50.00% 25.00% 50.00% 25.00%
Paracentro - Gestão de Galerias Comerciais,
SA		 Maia 100.00% 50.00% 100.00% 50.00%
Park Avenue Developement of Shopping
Centers, SA		 Athens (Greece) 100.00% 25.00% 100.00% 25.00%
Parque Atlântico Shopping - Centro Comercial
SA		 Ponta Delgada
(Azores)		 50.00% 12.53% 50.00% 12.53%
Parque D. Pedro 1, BV Sarl Luxembourg 100.00% 25.00% 100.00% 25.00%
Parque D. Pedro 2, BV Sarl Luxembourg 100.00% 25.00% 100.00% 25.00%
Parque de Famalicão - Empreendimentos
Imobiliários, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Parque Principado, SL Madrid (Spain) 50.00% 12.53% 50.00% 12.53%
Pátio Boavista Shopping, Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Pátio Goiânia Shopping, Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Pátio Londrina Empreendimentos e
Participações, Ltda		 São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Pátio Penha Shopping, Ltda São Paulo (Brazil) 99.99% 23.94% 99.99% 23.91%
Pátio São Bernardo Shopping Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Pátio Sertório Shopping Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Pátio Uberlândia Shopping Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Plaza Eboli - Centro Comercial, SA Madrid (Spain) 100.00% 50.00% 100.00% 50.00%
Plaza Eboli, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Plaza Mayor Holding, SGPS, SA Maia 100.00% 25.05% 100.00% 25.05%
Plaza Mayor Parque de Ócio, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
Plaza Mayor Parque de Ócio, SA Madrid (Spain) 100.00% 25.05% 100.00% 25.05%
Plaza Mayor Shopping, BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 25.05%
Plaza Mayor Shopping, SA Madrid (Spain) 75.00% 18.79% 75.00% 18.79%
Ploi Mall BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Pridelease Investments, Ltd Cascais 100.00% 50.00% 100.00% 50.00%
Project 4, Srl Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Project SC 1, BV Amesterdam (The
Netherlands)		 50.00% 25.00% 50.00% 25.00%
Project SC 2, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
6) Project Sierra 1 - Shopping Centre, GmbH Viena (Austria) 100.00% 50.00% 100.00% 50.00%
Project Sierra 2, BV Amesterdam (The 100.00% 50.00% 100.00% 50.00%
Netherlands)
Amesterdam (The
Project Sierra 6, BV Netherlands) 50.00% 25.00% 100.00% 50.00%
Project Sierra 7 BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra 8 BV Amesterdam (The
Netherlands)		 100.00% 25.05% 100.00% 50.00%
Project Sierra 9 BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra 10 BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Brazil 1, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Four SA Bucareste
(Romania)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Germany 2 (two), Shopping
Centre GmbH		 Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Germany 3 (three), Shopping
Centre, GmbH		 Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Germany 4 (four), Shopping
Centre, GmbH		 Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Germany Shopping Centre 1 BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Germany Shopping Centre 2 BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Italy 1 - Shopping Centre, Srl Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Project Sierra Italy 2 - Development of
Shopping Centres, Srl		 Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Project Sierra Italy 3 - Shopping Centre, Srl Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Project Sierra Italy 5 - Development of
Shopping Centres Srl		 Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Project Sierra One Srl Buchareste
(Romania)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Portugal IV - Centro Comercial,
SA		 Maia 100.00% 50.00% 100.00% 50.00%
Project Sierra Portugal V - Centro Comercial,
SA		 Maia 100.00% 50.00% 100.00% 50.00%
Project Sierra Portugal VII - Centro Comercial,
SA		 Maia 100.00% 50.00% 100.00% 50.00%
Project Sierra Portugal VIII - Centro
Comercial, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 1, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 2 - Centro Comercial, SA Madrid (Spain) 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 2, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 3 - Centro Comercial, SA Madrid (Spain) 50.00% 25.00% 50.00% 25.00%
Project Sierra Spain 3, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 6 - Centro Comercial, SA Madrid (Spain) 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 6, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 7 - Centro Comercial, SA Madrid (Spain) 100.00% 50.00% 100.00% 50.00%
Project Sierra Spain 7, BV Amesterdam
(The
Netherlands
)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Three Srl Buc
hareste
(Romania
)		 100.00% 50.00% 100.00% 50.00%
Project Sierra Two Srl Buc
hareste
(Romania
)		 100.00% 50.00% 100.00% 50.00
%
River Plaza BV Amesterdam
(The
Netherlands
)		 100.00% 50.00% 100.00% 50.00%
River Plaza Mall, Srl Buc
hareste
(Romania
)		 100.00% 50.00% 100.00% 50.00%
S.C. Microcom Doi Srl Buc
hareste
(Romania
)		 100.00% 50.00% 100.00% 50.00%
SC Aegean, BV Amesterdam
(The
Netherlands
)		 50.00% 25.00% 50.00% 25.00%
SC Mediterranean Cosmos, BV Amesterdam
(The
Netherlands
)		 50.00% 12.53% 50.00% 12.53%
Shopping Centre Colombo Holding, BV Amesterdam
(The
Netherlands
)		 50.00% 12.53% 50.00% 12.53%
Shopping Centre Parque Principado, BV Amesterdam
(The
Netherlands
)		 100.00% 25.05% 100.00% 25.05%
Sierra Asset Management
- Gestão de
Activos, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Sierra Brazil 1, BV Amesterdam
(The
Netherlands
)		 100.00% 25.00% 100.00% 25.00%
9) Sierra Central, S.A.S. Santiago de Cali
(Col
ombia)		 100.00% 25.00% - -
Sierra Charagionis Development of Shopping
Centers, SA		 At
hens (Greece
)		 50.00% 25.00% 50.00% 25.00%
Sierra Charagionis Property Management, SA At
hens (Greece
)		 50.00% 25.00% 50.00% 25.00%
Sierra Corporate Services
- Apoio à Gestão,
SA		 Lisbon 100.00% 50.00% 100.00% 50.00%
Sierra Corporate Services Holland, BV Amesterdam
(The
Netherlands
)		 100.00% 50.00% 100.00% 50.00%
Sierra Development of Shopping Centres
Greece, SA		 At
hens (Greece
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments
- Serviços de Promoção
Imobiliária, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Sierra Developments Germany GmbH Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
8) Sierra Berlin Holding BV Amesterdam
(The
Netherlands
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments Holding, BV Amesterdam
(The
Netherlands
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments Iberia 1, Promoção
Imobiliária, SA		 Maia 100.00% 50.00% 100.00% 50.00%
Sierra Developments Italy, Srl Milan
(Italy
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments Romania SRL Buc
hareste
(Romania
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments Spain
- Promociones de
Centros Comerciales, SL		 Madrid (Spain
)		 100.00% 50.00% 100.00% 50.00%
Sierra Developments, SGPS, SA Maia 100.00% 50.00% 100.00% 50.00%
Sierra Enplanta, Ltda São Paulo (Brazil
)		 100.00% 23.94
%		 100.00% 23.91%
Sierra European Retail Real Estate Assets
Holdings, BV		 Amesterdam
(The
Netherlands
)		 50.10% 25.05% 50.10% 25.05%
Sierra GP, Limited Guernesey (U.K.) 100.00% 49.99% 100.00% 49.99%
Sierra Investimentos Brazil Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Sierra Investments (Holland) 1, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Sierra Investments (Holland) 2, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Sierra Investments Holding, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Sierra Investments SGPS, SA Maia 100.00% 50.00% 100.00% 50.00%
Sierra Italy Holding, BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Sierra Management Germany, GmbH Dusseldorf
(Germany)		 100.00% 50.00% 100.00% 50.00%
Sierra Management II - Gestão de Centros
Comerciais, SA		 Lisbon 100.00% 50.00% 100.00% 50.00%
Sierra Management Italy, Srl Milan (Italy) 100.00% 50.00% 100.00% 50.00%
Sierra Management New Tech.Bus. -
Serv.Comu.CC, SA		 Lisbon 100.00% 50.00% 100.00% 50.00%
Sierra Management Portugal - Gestão de
Centros Comerciais, SA		 Lisbon 100.00% 50.00% 100.00% 50.00%
Sierra Management Spain - Gestión de
Centros Comerciales, SA		 Madrid (Spain) 100.00% 50.00% 100.00% 50.00%
Sierra Management, SGPS, SA Maia 100.00% 50.00% 100.00% 50.00%
Sierra Property Management Greece, SA Athens (Greece) 100.00% 50.00% 100.00% 50.00%
Sierra Property Management, Srl Buchareste
(Romania)		 100.00% 50.00% 100.00% 50.00%
Sonae Sierra Brazil, SA São Paulo (Brazil) 95.20% 23.94% 95.20% 23.91%
Sonae Sierra Brazil, BV Sarl Luxembourg 50.00% 25.00% 50.00% 25.00%
Sonae Sierra, SGPS, SA Maia 50.00% 50.00% 50.00% 50.00%
SPF - Sierra Portugal Luxembourg 100.00% 50.00% 100.00% 50.00%
6) SRP - Parque Comercial de Setúbal, SA Maia 50.00% 25.00% 50.00% 25.00%
Torre Ocidente - Imobiliária, SA Maia 50.00% 12.50% 50.00% 12.50%
Unishopping Administradora, Ltda São Paulo (Brazil) 100.00% 23.94% 100.00% 23.91%
Unishopping Consultoria Imobiliária, Ltda São Paulo (Brazil) 99.98% 23.94% 99.98% 23.91%
Valecenter, Srl Milan (Italy) 100.00% 25.05% 100.00% 25.05%
Via Catarina - Centro Comercial, SA Maia 50.00% 12.53% 50.00% 12.53%
Vuelta Omega, S.L. Madrid (Spain) 100.00% 12.53% 100.00% 12.53%
Weiterstadt Shopping BV Amesterdam (The
Netherlands)		 100.00% 50.00% 100.00% 50.00%
Zubiarte Inversiones Inmobiliarias, SA Madrid (Spain) 49.83% 12.48% 49.83% 12.48%
Telecommunications
Unipress - Centro Gráfico, Lda Vila Nova de Gaia 50.00% 27.20% 50.00% 27.11%

Investment Management

9) Coral, SA Porto 50.00% 25.01% - -
Equador & Mendes - Agência de Viagens e
Turismo, Lda		 Lisbon 50.00% 37.50% 50.00% 37.50%
Marcas do Mundo - Viagens e Turismo,
Sociedade Unipessoal, Lda		 Lisbon 50.00% 50.00% 50.00% 50.00%
Movimentos Viagens - Viagens e Turismo,
Sociedade Unipessoal, Lda		 Lisbon 50.00% 50.00% 50.00% 50.00%
Nova Equador Internacional,Agência de
Viagens e Turismo, Lda		 Lisbon 50.00% 37.50% 50.00% 37.50%
Puravida - Viagens e Turismo, Lda Lisbon 50.00% 50.00% 50.00% 50.00%
Nova Equador P.C.O. e Eventos, Sociedade
Unipessoal, Lda
Raso SGPS, SA		 Lisbon
Lisbon		 50.00%
50.00%		 37.50%
50.00%		 50.00%
50.00%		 37.50%
50.00%
Raso - Viagens e Turismo, SA Lisbon 50.00% 50.00% 50.00% 50.00%
Viagens y Turismo de Geotur España, S.L. Madrid (Spain) 50.00% 50.00% 50.00% 50.00%

1) Companies incorporated in the period;

  • 2) At 15 February 2010, 91% of this company's share capital was disposed off. Since then the entity consolidates by the equity method, as Sonae Sierra kept control over the shopping centre management;
  • 3) Ex Project Sierra Portugal I C.Comercial, SA;

4) Ex - Project Sierra Portugal II - Centro Comercial, SA;

  • 5) Ex Project Sierra Portugal VI Centro Comercial, SA;
  • 6) Companies disposed in the period;
  • 7) Ex Project Sierra 5, BV;
  • 8) Ex Sierra Developments Germany Holding, BV;
  • 9) Companies acquired in the period.
  • 10) At 27 September 2010, disposal of the company's share capital to the investment fund Sierra Portugal Real Estate (SPF). Since then, the entity consolidates by the equity method;

These entities are consolidated using the proportionate consolidation method.

Aggregate amounts, excluding intragroup eliminations, corresponding to the percentage of capital held in these jointly controlled companies included in the financial statements for the period, using the proportionate consolidation method, can be summarized as follows:

30 September 2010 31 December 2009
Non-current assets 4,408,701,393 4,508,730,523
Current assets 298,807,484 256,002,590
Non-current liabilities 1,632,085,240 1,652,852,079
Current liabilities 379,106,556 375,513,257
30 September 2010 30 September 2009
Income 278,495,330 157,696,823
Expenses 265,021,734 228,141,111

6 INVESTMENTS IN ASSOCIATES

Associated companies, their head offices and the percentage of share capital held as at 30 September 2010 and 31 December 2009 are as follows:

Percentage of capital held
30 September 2010 31 December 2009 Book value
COMPANY Head Office Direct Total Direct Total 30 September 2010 31 December 2009
Retail
Sempre a Postos - Produtos Alimentares e Utilidades,
Lda Lisbon 25.00% 25.00% 25.00% 25.00% 1,182,359 1,551,585
Shopping Centres
1) 8ª Avenida Centro Comercial, SA Maia 100.00% 23.75% 100.00% 21.00% - -
2)
Alexa Asset GmbH & Co		 Dusseldorf
(Germany)		 25.00% 2.25% 50.00% 25.00% 3,238,331 -
1)
Arrábidashopping - Centro Comercial, SA		 Maia 50.00% 11.88% 50.00% 10.50% - -
Campo Limpo Lda S. Paulo (Brazil) 20.00% 5.00% 20.00% 5.00% 2,084,268 1,712,614
1)
Gaiashopping I - Centro Comercial, SA		 Maia 50.00% 11.88% 50.00% 10.50% - -
1)
Gaiashopping II - Centro Comercial, SA		 Maia 100.00% 23.75% 100.00% 21.00% - -
1)
Loureshopping - Centro Comercial, SA		 Maia 100.00% 23.75% 100.00% 21.00% - -
Mediterranean Cosmos Shop. Centre Investments, SA Athens (Greece) 39.90% 5.00% 39.90% 5.00% 3,384,096 3,376,307
1) 3)
PORTCC - Portimãoshopping - Centro Comercial, SA		 Maia 50.00% 11.88% 50.00% 10.50% - -
1) Rio Sul - Centro Comercial, SA Lisbon 50.00% 11.88% 50.00% 10.50% - -
1)
Serra Shopping - Centro Comercial, SA		 Covilhã 50.00% 11.88% 50.00% 10.50% - -
1) 4)
ALBCC - Albufeirashopping - Centro Comercial, SA		 Maia 50.00% 11.88% 50.00% 10.50% - -
1) 5)6)
LCC - LeiriaShopping - Centro Comercial, S.A.		 Maia 100.00% 23.75% 100.00% 50.00% - -
SPF - Sierra Portugal Real estate, Sarl Luxembourg 47.50% 23.75% 42.00% 21.00% 41,871,080 32,013,766
Telecommunications
SIRS - Sociedade Independente de Radiodifusão
Sonora, SA Porto 45.00% 24.48% 45.00% 24.40% 32,022 -
Investment Management
Golden Marquee Limited U.K. 25.10% 12.55% 32.12% 16.06% 32,276,922 35,995,121
Total 84,069,078 74,649,393
  • 1) Nil balances result from the application of the equity method over the consolidated financial statements of Sierra Portugal Real estate, which holds these participations;
  • 2) At 15 February 2010, 91% of this company's share capital was disposed off. Since then the entity consolidates by the equity method as Sonae Sierra kept control over the shopping center management. At the disposal date the remaining interests in the company were remeasured and recognized at their fair value;
  • 3) Ex Oeste Retail Park Gestão de G.Comer., SA;
  • 4) Ex Sol Retail Park Gestão de G. Comerc., SA;
  • 5) Ex-Proj.Sierra Portugal VI-C.Comercial, S.A.
  • 6) At 27 September 2010, disposal of the company's share capital to the investment fund Sierra Portugal Real Estate (SPF). Since then, the entity consolidates by the equity method.

Nil balances result from the application of the equity method that reduced the acquisition value.

Associated companies are included in the consolidated financial statements using the equity method. As at 30 September 2010 and 31 December 2009, aggregate values of main financial indicators of associated companies can be analysed as follows:

30 September 2010 31 December 2009
Total Assets 1,537,802,743 845,744,918
Total Liabilities 1,171,239,611 608,521,167
30 September 2010 30 June 2009
Income 245,361,872 128,018,856
Expenses 203,026,728 118,310,276

During the periods ended 30 September 2010 and 2009, movements in Investments in Associates, are made up as follows:

30 September 2010 30 September 2009
Proportion on
equity		 Goodwill Total
investment		 Proportion on
equity		 Goodwill Total
investment
Investments in Associates
Initial balance as at January,1 33,224,083 41,425,310 74,649,393 105,402,825 37,260,670 142,663,495
Capital increase in associated companies 14,381,368 - 14,381,368 6,955,606 - 6,955,606
Disposals during the period - - - (4,320,487) (15,672,496) (19,992,983)
Capital reduction in associated companies (2,310,176) - (2,310,176) (733,808) - (733,808)
Change of consolidation method (Note 8) 1,366,260 190,680 1,556,940 (69,027,699) (1,439,401) (70,467,100)
Goodwill recognised during the period - - - - - -
Equity method
Share of result in associated companies (803,418) - (803,418) (3,856,066) - (3,856,066)
Other efects in the income statement 365,873 - 365,873 - - -
Distributed dividends (897,450) - (897,450) - - -
Effect in equity capital and non-controlling interests (199,902) (2,673,550) (2,873,452) 339,714 2,481,226 2,820,940
45,126,638 38,942,440 84,069,078 34,760,085 22,629,999 57,390,084

The effect in equity is mainly the effect of currency translation of equity and net income of associated Companies with a functional currency different from euro.

7 GROUP COMPANIES, JOINTLY CONTROLLED COMPANIES AND ASSOCIATED COMPANIES EXCLUDED FROM CONSOLIDATION AND OTHER NON-CURRENT INVESTMENTS

Group companies, jointly controlled companies and associated companies excluded from consolidation and other non-current investments, their head offices, percentage of share capital held and book value as at 30 September 2010 and 31 December 2009 are made up as follows:

Percentage of capital held
30 September 2010 31 December 2009 Book value
COMPANY Head Office Direct Total Direct Total 30 September 31 December 2009
2010
Retail
Dispar - Distrib. de Participações, SGPS, SA Lisbon 7.14% 7.14% 7.14% 7.14% 9,976 4,988
Insco - Insular de Hipermerc., SA Ponta Delgada 10.00% 10.00% 10.00% 10.00% 748,197 748,197
Shopping Centres
Ercasa Cogeneracion SA Grancasa (Spain) 10.00% 1,25% 10.00% 1,25% 23,949 23,949
Telecommunications
Altitude, SGPS, SA Lisbon 11.54% 6.27% 11.54% 6.26% 1,000,000 1,000,000
Lusa - Agên. de Notícias de Portugal, SA Lisbon 1.38% 0.75% 1.38% 0.75% 197,344 197,344
Other investments 9,844,860 16,153,014
Total (Note 13) 11,824,326 18,127,492

As at 30 September 2010, the caption "Other Investments" includes 7,304,000 euro (13,778,000 euro as at 31 December 2009) related to the fair value of Sonae Capital, SGPS, S.A. shares attributable to Sonae SGPS, and not derecognized as explained in Note 18.

8 CHANGES TO THE CONSOLIDATION PERIMETER

8.1 Main acquisitions of Companies over the nine month period ended 30 September 2010 are as follows:

COMPANY Percentage of capital held
At acquisition date
Head Office Direct Total
Management investments
Quorum Corretora de Seguros, Ltda Brazil 100.00% 50.01%
Coral, SA Porto 50.00% 25.01%

Acquisitions mentioned above, had the following impact on the consolidated financial statements for the period ended 30 September 2010:

At acquisition date 30 September 2010
Investment
Management Management
826,227 807,109
1,026,274 947,837
324,817 282,139
(6,007) (6,007)
(905,794) (649,137)
1,265,517 1,381,941
3,243,892
2,757,465
7,266,874
3,991,122
3,275,752
7,266,874
3,991,122
(324,817)
3,666,305
Investment

8.2 The main disposals of companies that have occurred in the period ended as at 30 September 2010 are as follows:

Percentage of capital held
at disposal date
COMPANY Head Office Direct Total
Shopping Centres
Alexa Asset GmbH & Co KG Dusseldorf 50.00% 25.00%
(Germany)
LCC - LeiriaShopping - Centro Comercial, S.A. Maia 100.00% 50.00%
Retail Properties
Difusão- Sociedade Imobiliária,
SA		 Maia 100.00% 100.00%

The net assets of the subsidiaries at disposal date are as follows:

Properties

Disposed net assets
Investment properties 124,878,888 -
Tangible Assets (Note 9) - 25,630,907
Other assets 628,962 1,775,422
Cash and cash equivalents 4,055,843 258,238
Loans (23,589,099) -
Deferred tax liabilities (2,033,800) (509,307)
Other liabilities (70,126,616) (26,012,428)
33,814,178 1,142,832
Transfer to investments in associates (Note 6) (1,556,940) -
Goodwill (Note 12) 2,118,857 -
Shareholder's loans, other loans and interests - 25,166,712
Costs with the disposal - 644,896
Profit / (Loss) in the disposal (950,716) 6,423,734
Disposal price 33,425,379 33,378,174
Effective cash payment received 24,056,853 33,378,174
Future cash receivements 9,368,526 -
33,425,379 33,378,174
Net cash-flow arising from disposal
Effective cash payment received 24,056,853 33,378,174
Effective cash received related to shareholder's loans and interests - 375,263
Effective cash payment related to the disposal costs - (644,896)
Cash and cash equivalents disposed (4,055,843) (258,238)
20,001,010 32,850,302

In 15 February 2010, Sonae, through the jointly controlled company ALEXA Shopping Centre GmbH ("Alexa Shopping"), disposed 91% of its equity interest in the company ALEXA Asset GmbH & Co, KG ("Alexa KG") (entity that owns the shopping centre "Alexa"). As a consequence of the loss of control over this company, it now consolidates by the equity method as Sonae kept a significant influence over it.

The retail real estate company referred above owns a building which has remained in use by the group after the company's disposal through an operating lease agreement, with an initial term of 20 years, (term extensions are possible).

8.3 Changes to the allocation of the fair value of business concentration activities made in the previous year

As the acquisition process of the Lazam/MDS was only concluded in the second half of 2009 and that it was necessary to re-express to IFRS the financial statements of the subsidiaries acquired, it was not concluded the process of allocation of fair value to the assets, liabilities and contingent liabilities acquired, namely in what refers to intangible assets acquired and not recognized until 31 December 2009. Such process was concluded during the period ended in 30 June 2010, and a restatement of the financial statements was made as required by IFRS's.

The impacts of the allocation of the fair value are as follows:

Acquisition date
Book Fair Value Total 31.12.2009
Value Adjustment Restated Published
Net assets acquired
Tangible and Intabible Assets (Notes 9 and 10) 3,235,540 27,276,799 30,512,339 3,235,540
Other current assets 2,776,129 - 2,776,129 2,776,129
Cash and cash equivalents 1,951,125 - 1,951,125 1,951,125
Deferred taxes - (9,881,583) (9,881,584) -
Loans (74,063) - (74,063) (74,063)
Other liabilities (28,740,040) - (28,740,040) (28,740,041)
(20,851,309) 17,395,216 (3,456,094) (20,851,310)
Goodwill (Note 12) (16,347,045) 34,935,602 51,282,647
Tranfers to Investments in Associates - (9,082,673) (9,082,673)
Non-controlling interests - 7,919,350 7,919,350
Acquisition price 1,048,171 30,316,185 29,268,014
Effective cash paid 29,268,014 29,268,014
Amount to be paid - acquisition price adjustment 1,048,171 -
30,316,185 29,268,014
Net cash flow resulting from the acquisition
Effective cash paid 29,268,014 29,268,014
Cash and cash equivalents acquired (1,951,125) (1,951,125)
27,316,889 27,316,889

As of 30 September 2010, the allocation of the acquisition price changed. A total amount of 87,416,093 reais was allocated to the 'clients portfolio', that is now registered in the caption "Intangible assets" and being depreciated over a period of 12 years. This intangible asset's valuation was based on the expected profitability of the existing 'clients portfolio' at the acquisition date, considering a growth rate of 3.7%, a churn rate of 5% and a discount rate of 12.8%.

9 TANGIBLE ASSETS

During the nine months period ended 30 September 2010 and 2009, movements in Tangible assets as well as depreciation and accumulated impairment losses, are made up as follows:

Tangible assets
Tangible Total
Land and Plant and assets Tangible
Buildings Machinery Others in progress Assets
Gross costs:
Opening balance as at 1 January 2010 1,986,853,135 1,909,707,144 356,672,971 192,384,479 4,445,617,729
Capital expenditure 7,497,313 4,941,055 13,251,883 168,961,914 194,652,165
Acquisitions of subsidiaries (Note 8) 763,887 - 711,975 - 1,475,862
Disposals (35,190,999) (36,638,578) (7,690,348) (1,286,237) (80,806,162)
Disposals of subsidiaries (Note 8) (30,071,609) (250,482) - - (30,322,091)
Exchange rate effect 26,168 148,845 217,782 27 392,822
Transfers 62,163,918 194,863,007 10,187,880 (275,884,463) (8,669,658)
Closing balance as at 30 September 2010 1,992,041,813 2,072,770,991 373,352,143 84,175,720 4,522,340,667
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2010 356,057,319 1,030,564,372 277,818,463 - 1,664,440,154
Charge for the period 29,266,608 111,379,503 31,125,768 - 171,771,879
Acquisitions of subsidiaries (Note 8) 212,913 - 436,722 - 649,635
Disposals (2,588,091) (30,586,331) (7,079,557) - (40,253,979)
Disposals of subsidiaries (Note 8) (4,622,572) (68,612) - - (4,691,184)
Exchange rate effect 16,705 65,948 98,531 - 181,184
Transfers 29,612 (1,374,586) (179,412) - (1,524,386)
Closing balance as at 30 September 2010 378,372,494 1,109,980,294 302,220,515 - 1,790,573,303
Carrying amount
As at 30 September 2010 1,613,669,319 962,790,697 71,131,628 84,175,720 2,731,767,364
Tangible assets
Tangible Total
Land and Plant and assets Tangible
Buildings Machinery Others in progress Assets
Gross costs:
Opening balance as at 1 January 2009 1,742,490,487 1,614,278,960 321,293,070 283,948,037 3,962,010,554
Capital expenditure 12,048,655 8,962,736 13,139,409 262,375,281 296,526,081
Acquisitions of subsidiaries 94,326,259 160,363 1,021,080 51,140,432 146,648,134
Disposals (610,774) (11,147,244) (4,110,131) (10,025,506) (25,893,655)
Exchange rate effect 71,977 326,982 475,697 - 874,656
Transfers 43,786,528 213,728,319 17,647,640 (282,446,518) (7,284,031)
Closing balance as at 30 September 2009 1,892,113,132 1,826,310,116 349,466,765 304,991,726 4,372,881,739
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2009 320,534,099 889,938,447 243,594,972 - 1,454,067,518
Charge for the period 26,575,277 121,146,318 30,474,443 - 178,196,038
Acquisitions of subsidiaries - 91,864 501,142 - 593,006
Disposals (172,603) (8,744,045) (3,395,527) - (12,312,175)
Exchange rate effect 39,752 136,180 217,941 - 393,873
Transfers (21,765) (576,045) (117,093) - (714,903)
Closing balance as at 30 September 2009 346,954,760 1,001,992,719 271,275,878 - 1,620,223,357
Carrying amount
As at 30 September 2009 1,545,158,372 824,317,397 78,190,887 304,991,726 2,752,658,382

During the nine-months period ended 30 September 2010, the Board reviewed the estimated useful life of a set of assets associated with mobile telecommunications network, which was recorded on a forward-looking basis with effect from 1 January 2010 and which meant that the depreciation of the nine-month period ended 30 September 2010 was approximately 6.6 million lower than the ninemonth period ended 30 September 2009.

Additionally, the comparison of the depreciation of the nine-month period ended 30 September 2010 with those of the previous year's equivalent period is also affected by a subsequent review of the estimated useful life of a set of tangible assets and software related to fixed and mobile telecommunications network, carried out in the second half of 2009, which were recorded on a forwardlooking basis and which meant that the depreciation of the nine-month period ended 30 September 2010 was approximately 18 million euro and 5.7 million lower, respectively, at the nine-month period ended 30 September 2009.

Major amounts included in the caption "Tangible assets in progress", refer to the following projects:

30 September 2010 30 September 2009
Refurbishment and expansion of stores in the retail
businesses located in Portugal		 30,850,500 124,925,491
Refurbishment and expansion of stores in the retail
businesses located in Spain		 4,078,245 -
Projects of "Modelo" and "Continente" stores for
which advance payments were made		 10,323,231 34,387,426
Construction in Progress in Maia (Business Park) 4,451,620 63,739,427
Deployment of mobile network 26,016,486 32,270,504
Deployment of fixed network 5,553,842 39,171,652
Others 2,901,796 10,497,226
84,175,720 304,991,726

10 INTANGIBLE ASSETS

During the nine month period ended 30 September 2010 and 2009, movements in Intangible assets as well as depreciation and accumulated impairment losses, are made up as follows:

Intangible assets
Intangible Total
Patents and other assets Intangible
similar rights Others in progress Assets
Gross costs:
Opening balance as at 1 January 2010 - published 404,407,706 392,398,702 31,279,161 828,085,569
Fair value of the acquired assets (Note8) - 27,276,799 - 27,276,799
Opening balance as at 1 January 2010 - restated 404,407,706 419,675,501 31,279,161 855,362,368
Capital expenditure 7,838,555 1,951,318 22,200,357 31,990,230
Disposals (1,385,769) (1,137,031) (261,948) (2,784,748)
Exchange rate effect 905 2,717,133 - 2,718,038
Transfers 886,997 29,219,468 (25,476,208) 4,630,257
Closing balance as at 30 September 2010 411,748,394 452,426,389 27,741,362 891,916,145
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2010 99,146,402 288,900,669 - 388,047,071
Charge for the period 17,442,469 28,746,572 - 46,189,041
Disposals (3,235) (1,024,826) - (1,028,061)
Exchange rate effect 69 270,922 - 270,991
Transfers (46,780) 1,188,778 - 1,141,998
Closing balance as at 30 September 2010 116,538,925 318,082,115 - 434,621,040
Carrying amount
As at 30 September 2010 295,209,469 134,344,274 27,741,362 457,295,105
Intangible assets
Intangible Total
Patents and other assets Intangible
similar rights Others in progress Assets
Gross costs:
Opening balance as at 1 January 2009 382,645,868 362,074,955 31,622,120 776,342,943
Capital expenditure 17,220,649 1,258,874 24,049,691 42,529,214
Acquisitions of subsidiaries 33,014 1,817,882 7,455 1,858,351
Disposals (142,641) (821,540) (250,044) (1,214,225)
Exchange rate effect 487 1,011,513 13,115 1,025,115
Transfers 2,092,461 15,822,080 (18,756,690) (842,149)
Closing balance as at 30 September 2009 401,849,838 381,163,764 36,685,647 819,699,249
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2009 78,555,270 257,488,512 - 336,043,782
Charge for the period 15,551,898 27,653,322 - 43,205,220
Acquisitions of subsidiaries 25,062 221,936 - 246,998
Disposals (70,629) (684,895) - (755,524)
Exchange rate effect (34) 279,253 - 279,219
Transfers (56,147) 5,416 - (50,731)
Closing balance as at 30 September 2009 94,005,420 284,963,544 - 378,968,964
Carrying amount
As at 30 September 2009 307,844,418 96,200,220 36,685,647 440,730,285

As at 30 September 2010 and 2009, Sonae kept recorded under the heading "Patents and other similar rights" the amounts of 193,628,608 euro and 204,496,242 euro, respectively, that correspond to the investments net of depreciations made in the development of the UMTS network, including: (i) 60,755,834 euro (amount of 63,756,122 euro in 2009) relating to the license; (ii) 20,300,752 euro (amount of 21,303,258 euro in 2009) related to the agreement signed in 2002 between Oni Way and the other three mobile telecommunication operators in Portugal with licenses; (iii) 6,234,974 euro (amount of 6,542874 euro in 2009) related to a contribution to the Information Society Fund, established in 2007, under an agreement made between the Ministry of Public Works, Transport and Communications ("Ministério das Obras Públicas, Transportes e Comunicações") and the three mobile telecommunication operators in Portugal; and (iv) 101,146,037 euro (amount of 107,446,629 euro in 2009) relating to the "Iniciativas E" program, the latter relating to commitments assumed by Sonae in the "Fund for Information Society" (Note 33).

Additionally, this heading also includes the fair value attributed to a group of brands with indefinite useful lives, among which the "Continente" brand, 75,000,000 euro (the same amount as at 2009).

Investment properties are recorded at fair value. These assets are owned by the shopping centres operating segment and are consolidated using the proportionate method.

As at 30 September 2010 and 31 December 2009, Investment properties are detailed as follows:

30 September 2010 31 December 2009
Investment properties in operation 1,616,602,306 1,676,623,981
Investment properties in progress 101,387,935 119,846,837
1,717,990,241 1,796,470,818

Investment properties in operation correspond to the fair value of the Sonae's share of shopping centres, which can be detailed as follows:

30 September 2010 31 December 2009
10 years
"discount rate"		 Yields Amount 10 years
"discount rate"		 Yields Amount
Portugal 8,40% e 10,85% 6,15% e 8,60% 717,106,345 8,25% e 10,55% 6,00% e 8,30% 726,662,623
Spain 8,95% e 11,50% 6,45% e 9,00% 357,310,478 8,90% e 11,55% 6,40% e 9,05% 351,937,238
Italy 8,25% e 10,00% 6,05% e 7,80% 151,708,750 8,00% e 9,50% 6,00% e 7,70% 149,810,250
Germany 6.75% 6,00% e 6,25% 157,404,000 6,50% e 6,75% 6,00% e 6,25% 234,425,638
Brazil 12,75% e 14,00% 8,25% e 9,50% 204,940,484 12,75% e 14,00% 8,25% e 9,50% 180,277,982
Greece 11.75% 8.25% 13,409,750 10.75% 7.00% 18,529,750
Romania 10.75% 9.00% 14,722,499 10.75% 9.00% 14,980,500
1,616,602,306 1,676,623,981

The fair value was determined by a valuation performed as at 30 September 2010 by an independent specialized entity, based on valuation criteria generally accepted in the real estate business.

Value created on investment properties over the nine - months periods ended 30 September 2010 and 2009 can be detailed as follows:

30 September 2010 30 September 2009
Properties which were under development and were
concluded during the period		 2,021,543 (908,873)
Changes in fair value of investment properties in
operation		 1,689,795 (118,255,853)
Changes in fair value of investment properties in
progress		 (319,492) 6,335,694
3,391,846 (112,829,032)

As at 30 September 2010 and 31 December 2009, Investment properties in progress can be detailed as follows:

30 September 2010 31 December 2009
Investment Properties in progress at cost:
Portugal:
Alverca 3,067,791 3,066,099
Centro Bordalo 1,706,410 1,685,228
Parque de Famalicão 628,500 1,498,232
Torre Ocidente 2,438,060 519,902
Germany:
Alexa (Tower) 5,500,000 7,320,992
Garbsen 947,466 867,053
Others 7,212 -
Brazil:
Goiânia Shopping 4,940,662 3,770,303
Uberlândia Shopping - 2,294,093
Boulevard Londrina Shopping 1,768,458 1,348,853
Parque D. Pedro - expansion 1,666,640
Others 167,900 22,867
Spain:
Alfaz del Pi - 9,575,000
Pulianas Shopping 103,105 103,105
Dos Mares - expansion 1,404,902 1,404,902
Others 61,743 37,868
Greece:
Epirus Plaza 16,064,972 13,531,277
Galatsi Shopping 6,538,942 5,771,370
Aegean Park 4,967,357 4,925,052
Pantheon Plaza 889,064 889,064
Italy:
Le Terraze (Hypermarket 2,864,557 3,261,195
Caldogno 4,948,473 4,937,831
Others 262,208 257,365
Romania:
Craiova Shopping 17,697,777 17,615,979
Ploiesti Shopping 7,348,726 7,415,770
85,990,925 92,119,400
Impairment losses (6,449,000) (6,537,230)
79,541,925 85,582,170
Investment Properties in progress at fair value:
Portugal:
Leiria Shopping - 24,597,667
Brazil:
Uberlândia Shopping 8,353,510 -
Italy:
Le Terraze 13,492,500 9,667,000
21,846,010 34,264,667

101,387,935 119,846,837

As at 30 September 2010, the following investment properties were mortgaged:

Airone Luz del Tajo
Algarveshopping Madeirashopping
Alverca Maiashopping
Arrabidashopping Manauara Shopping
Cascaishopping Max Center
Centro Colombo Munster Arkaden
Centro Vasco da Gama Norteshopping
Coimbrashopping Parque Atlântico
Dos Mares Parque Principado
El Rosal Pátio Uberlândia
Estação Viana Plaza Éboli
Freccia Rossa Plaza Mayor
Gaiashopping Plaza Mayor Shopping
Gli Orsi River Plaza Mall
Grancasa Torre Ocidente
Guimarãeshopping Valecenter
La Farga Valle Real
Le Terrazze Viacatarina
Loop 5 Zubiarte

During the nine month periods ended 30 September 2010 and 2009 movements in goodwill, as well as in corresponding impairment losses, were made up as follows:

30 September 2010 30 September 2009
Gross value:
Opening balance - published 759,786,674 709,012,583
Re-allocation of Goodwill (Note 8) (17,395,216) -
Restated opening balance (Note 8) 742,391,458 709,012,583
New companies in the consolidation perimeter (Note 8) 3,243,892 18,426,845
Increases 1,408,752 125,646
Decreases (1,928,177) (7,539,503)
Transfers (190,680) (2,274,254)
Currency translation 2,793,032 -
Write-off (1,529,706) -
Closing balance 746,188,571 717,751,317
Accumulated impairment
losses:
Opening balance 13,445,983 11,745,221
Increases - -
Write-off (1,529,706) -
Closing balance 11,916,277 11,745,221
Carrying amount: 734,272,294 706,006,096

13 OTHER INVESTMENTS

During the nine months period ended 30 September 2010 and 2009 movements in other investments were made up as follows:

30 September 2010 30 September 2009
Non-current Current Non-current Current
Investments in group companies, jointly controlled companies
or associated companies excluded from consolidation
Opening balance as at 1 January 925,769 - 3,012,637 -
Acquisitions in the period - - 287,910 -
Disposals in the period - - - -
Transfers 64,470 - (1,471,768) -
Closing balance as at 30 September 990,239 - 1,828,779 -
Accumulated impairment losses - - - -
990,239 - 1,828,779 -
Other investments:
Fair value (net of impairment losses) as at 1 January 17,201,722 57,313,909 9,965,538 60,956,604
Acquisitions in the period 105,149 2,677,225 13,992 4,708,244
Disposals in the period (249) (11,402,745) - (10,780,843)
Increase/(Decrease) in fair value (6,474,000) - 8,134,000 1,467,000
Transfers 1,465 - - -
Fair value (net of impairment losses) as at 30 September 10,834,087 48,588,389 18,113,530 56,351,005
Other Investments (Note 7) 11,824,326 48,588,389 19,942,309 56,351,005
Derivative financial instruments (Note 21)
Fair value as at 1 January - 365,122 - 2,600,159
Acquisitions in the period - - - 10,185
Disposals in the period - - - (72,495)
Increase/(Decrease) in fair value - (364,953) - (2,527,664)
Fair value as at 30 September - 169 - 10,185
11,824,326 48,588,558 19,942,309 56,361,190

The financial investments in group companies, jointly controlled companies or associated companies excluded from consolidation are recorded at the acquisition cost net of impairment losses. It is Sonae understanding that no reliable fair value estimate could be made as there is no market data available for these investments. The heading of Investments available for sale includes 3,530,087 euro (2,675,530 euro as at 30 September 2009) of investments recorded at the cost net of impairment losses for the same reasons.

The investments available for sale are net of impairment losses (Note 25) amounting to 31,757 euro (13,157 euro as at 30 September 2009).

Under the caption other financial investments is recorded an amount of 33,728,627 euro (45,123,946 euro as at 30 September 2009) related to deposited amounts on an Escrow Account which are invested in investment funds with superior rating and guarantee contractual liabilities assumed by Sonae which may arise from the sale of Sonae Distribuição Brasil, S.A., and for which provisions were recorded (Note 25).

Although in accordance with the deadlines contractually established, the Escrow Account should have already been released by the buyer, that didn´t happen as there are some points of disagreement on how to use the Escrow Account, namely as to whether or not, to return the Escrow Account for ongoing fiscal procedures that have not yet been decided by Brazilian authorities (Note 26). It is the understanding of the Board of Directors, based in the legal opinions of Brazilian and Portuguese lawyers, that this amount shall be entirely received up to 31 December 2010, and that there are legal means that may be operated so as to compel the buyer to authorize the return of the Escrow account. If the negotiations currently under way between the two parties do not accomplish in results, it is the intention of the Board to make use of such legal means.

14 OTHER NON - CURRENT ASSETS

As at 30 September 2010 and 31 December 2009, Other non- current assets are detailed as follows:
-- -- -------------------------------------------------------------------------------------------------- --
30 September 2010 31 December 2009
Gross Value Accumulated
impairment
losses
(Note 25)		 Carrying
Amount		 Gross Value Accumulated
impairment
losses
(Note 25)		 Carrying
Amount
Loans granted to related parties 792,168 - 792,168 1,312,071 - 1,312,071
Trade accounts receivable and other debtors
Legal deposits 887,023 - 887,023 819,480 - 819,480
Recognition of an amount receivable from Carrefour 11,033,252 - 11,033,252 - - -
Cautions 4,020,306 - 4,020,306 2,949,266 - 2,949,266
Lisbon Town Council 3,888,477 - 3,888,477 3,888,477 - 3,888,477
Malaga Town Council 824,948 - 824,948 824,948 - 824,948
Rent deposits from tenants 3,971,087 - 3,971,087 4,036,717 - 4,036,717
Financial investments Disposals 2,367,815 - 2,367,815 - - -
Others 1,561,392 (141,988) 1,419,404 1,399,468 (141,988) 1,257,480
28,554,300 (141,988) 28,412,312 13,918,356 (141,988) 13,776,368
Non-current derivatives (Note 21) 100,903 - 100,903 12,991 - 12,991
Reinsurer's' share of technical provisions 15,284,502 - 15,284,502 5,396,067 - 5,396,067
Other non-current assets 710,777 - 710,777 678,815 - 678,815
45,442,650 (141,988) 45,300,662 21,318,300 (141,988) 21,176,312

15 TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS

As at 30 September 2010 and 31 December 2009, Trade account receivable and other current assets are detailed as follows:

30 September 2010 31 December 2009
Trade accounts receivable 268,223,563 294,831,656
Taxes recoverable 49,999,295 55,070,469
Granted loans to related companies 8,200 8,339
Other debtors
Trade creditors - debtor balances 62,390,491 58,251,461
Special regime for payment of tax and social security debts 12,382,502 13,999,945
VAT recoverable on real estate assets and discount granted 6,477,143 20,698,211
Vouchers and gift cards 1,603,481 1,308,743
Accounts receivable from the disposal of fixed assets 1,024,483 5,210,484
Disposal of financial investments 20,544,811 -
"Iniciativas E" program 13,820,410 -
Advances for the acquisiton of a real estate project 7,967,500 7,967,500
Termination of the contract of acquisition of land in Pulianas - 5,382,500
Revocation of contracts for acquisition of stores 8,426,568 11,131,667
Advances to suppliers 21,365,317 15,905,764
Advances to agents 1,214,635 1,004,492
Reinsurance operations 7,839,388 3,351,186
Other current assets 28,882,747 36,395,501
193,939,476 180,607,454
Other current assets
Invoices to be issued 59,639,470 57,394,646
"Iniciativas E" program 160,873 75,145,779
Commercial Discounts 29,694,803 14,211,921
Commissions to be received 1,289,877 1,368,173
Prepayments - Rents 5,029,704 4,204,847
Prepayments of external supplies and services 24,496,880 18,096,233
Other current assets 15,440,869 13,565,819
135,752,476 183,987,418
Accumulated impairment losses in receivables accounts (Note 25) (105,846,883) (103,988,411)
542,076,127 610,516,925

16 DEFERRED TAX

Deferred tax assets and liabilities as at 30 September 2010 and 31 December 2009 can be detailed as follows, split between the different types of temporary differences:

Deferred tax assets Deferred tax liabilities
30 September 2010 31 December 2009 30 September 2010 31 December 2009
Difference between fair value and acquisition cost 3,564,577 3,700,884 286,605,811 268,856,386
Harmonisation adjustments 122,761 46,211 50,026,697 43,461,567
Provisions and impairment losses not accepted for tax purposes 17,458,836 15,627,931 - -
Write off of tangible and intangible assets 49,032,123 58,633,429 - -
Write off of deferred costs 30,251,246 36,005,911 6,384,539 1,362,430
Valuation of hedging derivatives 7,963,803 7,180,175 64,130 100,654
Temporary differences arising from the securitization operation 10,465,000 12,880,000 - -
Amortisation of Goodwill for tax purposes - - 19,195,044 13,960,032
Non taxed exchange differences - - 71,425 928,553
Revaluation of tangible assets - - 2,014,406 2,131,967
Tax losses carried forward 111,444,037 94,364,809 - -
Reinvested capital gains/(losses) - - 2,103,255 2,768,248
Others 4,878,750 1,775,158 2,107,341 2,731,864
235,181,133 230,214,508 368,572,648 336,301,701

During the period and as a result of the introduction in Portugal of "Derrama Estadual", regulated by the law "Lei n.º 12-A/2010" of 30 June, that implies an additional income tax of 2.5% applied to the taxable profit that exceeds 2,000,000 euro , in some group companies in which it is expectable that this rate will be applied, the group changed the tax rate used to calculate the corresponding deferred tax. The more relevant impacts are the increase of the deferred tax credit relating to the fair value measurement of the investment properties in the amount of approximately, 13.2 million Euro, that was recorded as an expense in profit and loss statement.

In accordance with the tax statements and tax estimates presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 September 2010 and 31 December 2009, and using exchange rates effective at that time, tax losses carried forward can be summarised as follows:

30 September 2010 31 December 2009
Tax losses carried
forward		 Deferred tax
assets		 Time limit Tax losses carried
forward		 Deferred tax assets Time limit
With limited time use
Generated in 2004 311,930 77,983 2010 171,630 42,907 2010
Generated in 2005 297,248 74,312 2011 1,454,441 363,610 2011
Generated in 2006 535,223 133,806 2012 1,953,506 488,376 2012
Generated in 2007 125,017 31,254 2013 15,775,143 3,943,786 2013
Generated in 2008 4,106,186 1,026,547 2014 4,136,674 1,034,169 2014
Generated in 2009 50,166,489 12,541,621 2015 50,067,344 12,516,838 2015
Generated in 2010 38,939,628 9,734,907 2014 - -
94,481,721 23,620,430 73,558,738 18,389,686
Without limited time use 7,577,467 2,078,357 18,581,710 5,096,472
With a time limit different from the
above mentioned		 286,083,879 85,745,250 236,619,705 70,878,651
293,661,346 87,823,607 255,201,415 75,975,123
388,143,067 111,444,037 328,760,153 94,364,809

As at 30 September 2010 and 31 December 2009, deferred tax assets resulting from tax losses carried forward were re-assessed against each company's business plans, which are regularly updated, and available tax planning opportunities. Deferred tax assets have only been recognized to the extent that future taxable profits will arise which may be offset against available tax losses or against deductible temporary differences.

As at 30 September 2010 there was tax losses carried forward tax losses carried forward, for which no deferred tax assets were recognized due to prudential reasons. These may be summarised as follows:

30 September 2010 31 December 2009
Tax losses carried
forward		 Deferred tax credit Time limit Tax losses carried
forward		 Deferred tax credit Time limit
With limited time use
Generated in 2004 15,727,054 3,931,764 2010 7,026,627 1,756,656 2010
Generated in 2005 46,525,432 11,631,358 2011 46,474,629 11,618,658 2011
Generated in 2006 61,760,293 15,440,072 2012 60,520,774 15,130,192 2012
Generated in 2007 61,029,781 15,257,446 2013 60,518,585 15,129,647 2013
Generated in 2008 12,870,593 3,217,649 2014 13,091,128 3,272,783 2014
Generated in 2009 12,145,037 3,036,285 2015 12,670,496 3,167,650 2015
Generated in 2010 12,078,779 3,019,788 2014
222,136,969 55,534,362 200,302,239 50,075,586
Without limited time use 48,426,857 12,016,876 38,617,859 10,737,954
With a time limit different from the
above mentioned		 329,729,024 84,627,501 400,098,533 102,943,995
378,155,881 96,644,377 438,716,392 113,681,949
600,292,850 152,178,739 639,018,631 163,757,535

17 CASH AND CASH EQUIVALENTS

As at 30 September 2010 and 31 December 2009, Cash and cash equivalents can be detailed as follows:

30 September 2010 31 December 2009
Cash at hand 6,716,679 6,412,073
Bank deposits 81,412,393 140,227,780
Treasury applications 46,233,203 25,590,018
Cash and cash equivalents on the balance sheet 134,362,275 172,229,871
Bank overdrafts (Note 20) (15,274,635) (23,763,618)
Cash and cash equivalents on the statement of cash flows 119,087,640 148,466,253

Bank overdrafts are disclosed in the balance sheet under Current loans.

18 SHARE CAPITAL

As at 30 September 2010, the share capital, which is fully subscribed and paid for, is made up of 2,000,000,000 ordinary shares, which do not have the right to a fixed dividend, with a nominal value of 1 euro each.

On 15 November 2007, Sonae Holding sold, 132,856,072 Sonae Holding shares directly owned by the Company. The shares were sold in a market operation at the unit price of 2.06 euro per share and resulted on a cash inflow (net of brokerage commissions) of 273,398,877 euro.

On the same date, Sonae Investments, BV, wholly owned by Sonae Holding entered into a derivative financial instrument - Cash Settled Equity Swap - over a total of 132,800,000 Sonae Holding shares, representative of 6.64% of its share capital.

This transaction has a maximum maturity of three years and a strictly financial liquidation, without any duty or right for the Company or any of its associated companies in the purchase of these shares. This transaction allows Sonae Investments BV to totally maintain the economic exposure to the sold shares.

In this context, although legally all the rights and obligations inherent to these shares have been transferred to the buyer, Sonae Holding did not derecognize their own shares, recording a liability in the caption Other non-current liabilities (Note 22). According to the interpretation made by Sonae of the IAS 39, applied by analogy to own equity instruments, the derecognition of own shares is not allowed as Sonae maintains the risks and rewards arising on the instruments sold.

Consequently, Sonae maintains the deduction from Equity amounting to the acquisition cost of the 132,800,000 shares (138,568,275 euro), and has accounted for the consideration received for the above mentioned sale of own shares in the caption Other non-current liabilities (273,568,000 euro).

Due to the detach of Sonae Capital SGPS, SA, as at 4 January 2008, demerger rights attributable to the 132,800,000 Sonae SGPS, SA shares subject to the above mentioned agreement, Sonae recognized an asset measured at its' fair value . This asset has not been derecognized as Sonae also entered into a Cash Settled Equity Swap over the Sonae Capital SGPS, SA shares, and therefore a liability was recognized.

On 23 April 2009 and 10 March 2010 Sonae Investments BV requested a partial cancellation of the Cash settled Equity Swap for 1,134,965 and 1,185,144 shares Sonae Holding respectively, passing the derivative financial instrument to 130,479,891 shares Sonae Holding.

Consequently, and in relation with this operation the full liability amount can be detailed as follows at 30 September 2010: market value of Sonae SGPS, SA shares amounting to 106,080,151 euro and market value of Sonae Capital SGPS, SA shares amounting to 7,304,000 euro, after the conversion of rights occurred on 28 January 2008.

On 19 October 2010 Sonae Investments BV has agreed with a financial institution to extend the settlement date of the Cash Settled Equity Swap involving the above mentioned Sonae Holding shares. This renewal is made by a maximum period of 3 years. The liability was transferred to non-current liabilities at 30 September 2010.

These liabilities are adjusted at the end of each month by the effect in Sonae Holding or Sonae Capital, SGPS, S.A. share price, as applicable, being recognized a current asset/liability in order to present the right/obligation related to the cash settlement of the operation that resets monthly.

Additionally, the costs related to the "floating amount" based on Euribor 1 month are recorded in the income statement.

The receivable amount arising on dividends distributed by the Company is credited to Equity in order to offset the charge of the distribution.

The number of shares taken into consideration to calculate earnings per share includes the shares referred to above as a deduction to the shares issued by the Company.

At 30 September 2010, the following entities held more than 20% of the subscribed share capital:

Entity %
Efanor Investimentos, SGPS, SA and subsidiaries 52.98

19 NON-CONTROLLING INTERESTS

Movements in non-controlling interests during the periods ended 30 September 2010 and 2009 are as follows:

30 September 2010 30 September 2009
Opening balance as at 1 January 477,968,755 411,549,101
Dividends (1,752,069) (4,169)
Exchange rate effect 1,655,818 2,592,216
Acquisition of subsidiaries (2,757,465) 60,659,788
Increase of capital and premium on subsidiaries 15,287,888 -
Increased shareholding by acquisitions (877,017) -
Decreased shareholding by disposals - (16,237,539)
Changes in hedge and fair value reserves (1,835,790) (2,034,119)
Others (282,988) 2,379,698
Profit for the period attributable to non controlling interests 18,821,341 (23,549,377)
Closing balance 506,228,473 435,355,599

20 LOANS

As at 30 September 2010 and 31 December 2009, Loans are made up as follows:

30 September 2010 31 December 2009
Outstanding amount Outstanding amount
Amount limit Current Non Current Amount limit Current Non Current
Bank loans
Sonae, SGPS, SA - commercial paper 350,000,000 21,150,000 - 350,000,000 24,950,000 -
Sonae Investimentos, SGPS, S.A. - commercial paper 682,500,000 - 445,000,000 692,500,000 - 271,000,000
a)b)
Sonae Sierra affiliated companies		 1,078,597,659 14,823,348 385,353,027 470,086,920 16,621,638 385,383,442
a)b)c) Sonae Sierra affiliated companies 387,453,160 38,131,148 345,488,532 442,830,796 61,288,733 377,516,488
a)b)d) Sonae Sierra affiliated companies - - - 11,179,526 - 11,179,526
a)
Sonae Sierra affiliated companies		 5,352,722 2,693,875 2,658,847 12,185,116 8,179,211 3,435,116
Sonae Sierra SGPS, SA 93,920,000 15,544,526 - 49,460,000 18,585,252 -
Sonaecom SGPS, SA commercial paper 237,500,000 21,500,000 119,500,000 320,000,000 55,000,000 150,000,000
Sonaecom SGPS, SA 26,500,000 - - 26,500,000 3,500,000 -
Continente Hipermercados SA - commercial paper 30,000,000 - - 30,000,000 - -
MDS, SGPS, SA - commercial paper 10,000,000 - 10,000,000 - - -
Others 5,505,686 11,952,206 21,887,012 15,374,356
119,348,583 1,319,952,612 210,011,846 1,213,888,928
Bank overdrafts (Note 17) 15,274,635 - 23,763,618 -
Up-front fees beard with the issuance of borrowings (712,054) (4,642,854) (808,536) (5,564,118)
Bank loans 133,911,164 1,315,309,758 232,966,928 1,208,324,810
Bonds
Bonds Sonae / 05 - 100,000,000 - 100,000,000
Bonds Sonae 2006/2011 - - - 250,000,000
Bonds Sonae 2007/2014 - 150,000,000 - 150,000,000
Bonds Sonae 2007/2015 - 250,000,000 - -
Bonds Modelo Continente / 2003 - 82,000,000 - 82,000,000
Bonds Modelo Continente / 2005 / 2010 - - 64,925,000 -
Bonds Modelo Continente / 2005 / 2012 - 150,000,000 - 150,000,000
Bonds Modelo Continente / 2007 / 2012 - 200,000,000 - 200,000,000
Bonds Sonae Distribuição /
2007 /
2015		 - 200,000,000 - 200,000,000
Bonds Sonae Distribuição /
2007 /
2015		 - 310,000,000 - 310,000,000
Bonds Sonae Distribuição /
2009 /
2014		 - 50,000,000 - 50,000,000
Bonds Sonaecom / 2005 - 150,000,000 - 150,000,000
Bonds Sonaecom / 2010 - 30,000,000 - -
Bonds Sonaecom / 2010 - 40,000,000 - -
Bonds Sonae Sierra 2008/2013 - 37,500,000 - 37,500,000
Up-front fees beard with the issuance of borrowings (54,199) (8,699,316) (76,340) (8,365,778)
Bonds (54,199) 1,740,800,684 64,848,660 1,671,134,222
Other loans 36,230 555,705 33,466 586,519
Derivative instruments (Note 21) 7,935,208 42,304,231 7,902,322 34,584,190
Other loans 7,971,438 42,859,936 7,935,788 35,170,709
Obligations under finance leases 5,174,247 27,387,992 7,803,032 29,357,393
147,002,650 3,126,358,370 313,554,408 2,943,987,134

a) These amounts are proportionate considering the percentage held by Sonae;

b) These loans are guaranteed by mortgages of investment properties held by those affiliated companies;

c) These loans are guaranteed by a pledge of shares held by those affiliated companies;

d) These loans are guaranteed by bank guarantees.

The interest rate as at 30 September 2010 of bonds and loans were in average 1.92% (1.72% 31 December 2009).

Bank loans bear interests at market rates based on Euribor for each interest payment term, therefore the fair value of bank loans are estimated to be similar to their market value.

The derivative instruments are recorded at fair value (Note 21).

All loans with financial covenants were analyzed at the balance sheet date and in situations where they were breached, the corresponding debt was reclassified to current liabilities. These situations have occurred in the case of borrowing by Zubiarte, Gli Orsi and River Plaza, subsidiaries of the segment of shopping centres, amounting to 7,200,000 euro. Negotiations are underway with the correspondent banks to obtain a debt rescheduling.

The repayment schedule of the nominal value of loans can be summarised as follows:

30 September 2010 31 December 2009
N+1 a) 139,833,695 306,536,962
N+2 616,784,245 369,170,365
N+3 583,636,070 561,016,180
N+4 661,543,249 549,823,566
N+5 792,186,139 492,562,407
After N+5 443,246,606 950,760,322
3,237,230,004 3,229,869,802

a) Includes the amounts drawn under commercial paper programs.

The maturities above were estimated in accordance with the contractual terms of loans that do not include financial covenants.

21 DERIVATIVES

Exchange rate derivatives

Sonae uses exchange rate derivatives, essentially to hedge future cash flows.

Sonae contracted several exchange rate forwards and options in order to manage its exchange rate exposure.

As at 30 September 2010, the fair value of exchange rate derivatives which haven't been considered hedging instruments, calculated based on present market value of equivalent financial instruments of exchange rate, is of 1,366,901 euro included in liabilities (79,039 euro as of 31 December 2009) and 169 euro on the caption current investments (365,121 euro as at 31 December 2009).

The computation of the fair value of these financial instruments was made taking into consideration the present value at balance sheet date of the forward settlement amount of the relevant contract. The settlement amount considered in the valuation, is equal to the reference currency notional amount (foreign currency) multiplied by the difference between the contracted forward exchange rate and the forward exchange market rate to the settlement date as at the valuation date.

Losses in the period arising from changes in the fair value of instruments that do not qualify for hedging accounting treatment were recorded directly in the income statement in the caption "Net financial expenses".

Interest rate derivatives

As at 30 September 2010, derivatives used by Sonae refer essentially to swaps and interest rate options ("cash flow hedges"). These were negotiated to hedge the interest rate risk of loans amounting to 1,071,388,634 euro (948,629,817 euro as at 31 December 2009). The fair value of these derivatives amounts to - 48,771,635 euro (-42,394,481 euro as at 31 December 2009), and is disclosed as assets amounting to 100,903 euro (12,991 euro as at 31 December 2009) and as liabilities 48,872,539 euro (42,407,473 euro as at 31 de December de 2009).

These derivatives were valuated considering the estimated future cash-flows, assuming the exercise of the cancellation options by the counterparties when the forward interest rates are higher than the established fixed interest rate. Sonae intends to keep these derivatives until their expiration date, therefore, this valuation is considered to be the most appropriate to estimate the future cash flow of these instruments.

These interest rate derivatives are valued at fair value, at the balance sheet date, based on valuations performed by Sonae using specific software and on external valuations when this software does not deal with specific instruments. The fair value of swaps was calculated, at the balance sheet date, based on the discounted cash flow of the difference between the fixed interest rate of the fixed leg and the indexed variable interest rate inherent to the variable leg. The calculation of the fair value of options was based on the "Black-Scholes" and similar models.

Interest rate and exchange rate derivatives

As at 30 September 2010 no contracts existed related to interest rate and exchange rate derivatives.

Fair value of derivatives

The fair value of derivatives is detailed as follows:

Assets Liabilities
30 September 2010 31 December 2009 30 September 2010 31 December 2009
Derivatives not qualified as hedging
Exchange rate (Note 13) 169 365,121 1,366,901 79,039
Interest rate - - - -
Hedging derivatives
Exchange rate - - 2,456,003 -
Interest rate (Note 14) 100,903 12,991 46,416,535 42,407,473
Interest and exchange rate - - - -
Other derivatives (Note 20) - - - -
101,072 378,112 50,239,439 42,486,512

22 OTHER NON - CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009, "Other non-current liabilities" is detailed as follows:

30 September 2010 31 December 2009
Shareholders loans 39,633,147 47,276,787
Fixed assets suppliers 1,579,052 2,440,330
"Iniciativas E" program 8,560,795 32,923,892
Other non-current liabilities 140,281,792 156,470,214
Accruals and deferrals 1,160,145 1,156,180
Other non-current liabilities 191,214,931 240,267,403

The caption Shareholders loans relates to affiliated undertakings in the retail, shopping centres and investment management segments. These liabilities do not have a defined vesting date and bear interests at variable market rates.

23 SHARE-BASED PAYMENTS

In 2010 and in previous years, Sonae granted deferred performance bonuses to its directors and eligible employees. These are either based on shares to be acquired at nil cost, three years after they were attributed to the employee, or based on share options with the exercise price equal to the share price at the grant date, to be exercised three years later. In both cases, the acquisition can be exercised during the period commencing on the third anniversary of the grant date and the end of that year.

In 2009, Sonae changed the way of liquidation of its share-based programmes, which were traditionally settled in cash, to a an equity based settlement, in what concerns to Sonae Holding programmes. As at 30 September 2010, these plans are recognized in the captions "other reserves" and "staff costs".

The plans that continue to be settled in cash, shall remain recorded in the balance sheet, in the figure other liabilities of the balance sheet, and staff costs in the income statement.

As at 30 September 2010 and 31 December 2009, the market value of total liabilities arising from share-based payments, which have not yet vested, may be summarised as follows:

Grant Vesting Number of Fair value
year year participants 30 September 2010 31 December 2009
Shares
2007 2010 464 - 4,554,430
2008 2011 461 6,089,618 5,703,916
2009 2012 485 7,625,245 7,568,676
2010 2013 455 3,947,291 -
Total 17,662,154 17,827,022

As at 30 September 2010 and 31 December 2009 the financial statements include the following amounts corresponding to the period elapsed between those dates and the date of granting deferred bonus plans, which have not yet vested:

30 September 2010 31 December 2009
Staff costs 4,378,770 7,588,472
Recorded in previous years 7,084,739 3,678,193
11,463,509 11,266,665
Recorded in other liabilities 2,272,173 7,050,164
Recorded value in Other reserves 9,191,336 4,216,501
11,463,509 11,266,665

24 TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009, Trade creditors and other current liabilities were made up as follows:

30 September 2010 31 December 2009
Trade creditors 1,052,697,876 1,220,401,450
Taxes payable 72,145,317 86,627,709
Other creditors
Fixed asset suppliers 65,413,181 125,829,938
Related undertakings 19,851,478 5,527,840
Other debts 100,144,546 123,496,868
185,409,205 254,854,646
Other current liabilities
Property investments accruals 7,322,739 11,315,293
Fixed assets accrued costs 11,453,179 14,472,472
Holiday pay and bonuses 135,948,888 124,087,431
Interests payable 15,216,340 14,528,300
Invoices to be issued 42,042,851 42,253,540
Commissions 6,613,496 6,049,967
Marketing expenses 17,767,394 22,938,341
Information society 34,182,855 55,426,396
Other external supplies and services 54,805,660 49,901,884
Accrued income - trade debtors 29,298,279 31,257,499
Accrued income - rents 4,728,484 4,929,704
Others 55,305,028 33,991,215
414,685,194 411,152,042
1,724,937,592 1,973,035,847

25 PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES

Movements in Provisions and impairment losses over the nine months period ended 30 September 2010 and 2009 were as follows:

Caption Balance as at
31 December 2009		 Increase Decrease Balance as at
30 September
2010
Accumulated impairment losses on investments (Note 13) 67,925 535 (36,703) 31,757
Accumulated impairment losses on other non-current assets (Note 14) 141,988 - - 141,988
Accumulated impairment losses on trade account receivables and other debtors (Note 15) 103,988,411 17,404,051 (15,545,579) 105,846,883
Accumulated impairment losses on inventories 31,644,772 7,042,754 (3,932,316) 34,755,210
Non-current provisions 50,607,367 7,905,526 (441,944) 58,070,949
Current provisions 2,617,751 270,708 (800,022) 2,088,437
189,068,214 32,623,574 (20,756,564) 200,935,224
Caption Balance as at
31 December 2008		 Increase Decrease Balance as at
30 September
2009
Accumulated impairment losses on investments (Note 13) 13,157 - - 13,157
Accumulated impairment losses on other non-current assets 291,571 10,542 - 302,113
Accumulated impairment losses on trade account receivables and other debtors 109,583,183 19,644,269 (18,187,462) 111,039,990
Accumulated impairment losses on inventories 29,783,714 8,680,788 (4,895,955) 33,568,547
Non-current provisions 57,086,975 10,118,829 (3,740,882) 63,464,922
Current provisions 2,369,154 73,599 (645,576) 1,797,177
199,127,754 38,528,027 (27,469,875) 210,185,906

As at 30 September 2010 and 2009 and 31 December 2009, Provisions can be analysed as follows:

30 September 2010 31 December 2009
Technical provisions on reinsurance 11,029,375 9,118,524
Future liabilities relating to
subsidiaries of retail sold in Brazil		 5,896,946 5,447,923
Dismantling of telecommunication sites 22,637,701 22,208,721
Judicial claims 9,340,349 9,133,101
Others 11,255,015 7,316,849
60,159,386 53,225,118

Impairment losses are deducted from the book value of the corresponding asset.

26 CONTINGENT ASSETS AND LIABILITIES

As at 30 September 2010 and 31 December 2009, major contingent liabilities were guarantees given and can be detailed as follows:

30 September 2010 31 December 2009
Guarantees given:
on tax claims 260,176,202 266,974,945
on judicial claims 575,115 659,048
on municipal claims 7,500,105 8,998,481
others 43,631,781 42,776,282

The heading "Others" includes the following guarantees:

  • 6,931,673 euro (9,250,883 euro as at 31 December 2009) to guarantee part of the debt of Sonae Sierra affiliates related with the purchase, sale and exchange of land.

In 2009, one of the retail subsidiaries has granted a guarantee in favour of tax administration associated with a process for VAT amounting to 30,260,721 euro of the year 2004, which was presented their impugnation.

The shareholder of the subsidiary referred to above, has granted a guarantee amounting to 46,893,361 euro in order to ensure an additional payment of VAT, related to the year of 2005. Sonae will present the relevant appeal and believes, based on the opinion of their tax advisers the sentence will be favourable to the company.

Additionally to the guarantees referred above, were granted:

-by Sonae SGPS, S.A. two guarantees in favour of Sonae Investments SGPS, S.A. and Sonaecom SGPS amounting to EUR 69,366,699 for suspension of tax claims;

-by Sonaecom SGPS, S.A. a guarantee in favour of its subsidiary Optimus for ongoing tax processes up to the amount of EUR 6,935,.848.

Guarantees given on tax claims include a guarantee granted by a company of the Retail segment in Brazil, of approximately 31,929,437 euro (74,078,783 Brazilian real) , which is being judged by tax courts (72,755,267 brazilian real as at 31 December 2009).

As a consequence of the sale of a subsidiary company in Brazil, Sonae guaranteed the buyer all the losses incurred by that company arising on unfavourable decisions not open for appeal, concerning tax lawsuits on transactions that took place before the sale date (13 December 2005) and that exceed 40 million euro. As at 31 December 2009, the amount claimed by the Brazilian Tax Authorities concerning the tax lawsuits still in progress, which the company's lawyers assess as having a high probability of loss, amount to near 40 million euro, including processes paid under recovery program Brazilian State taxes ("REFIS") in the amount of 23 million euro.

Furthermore, there are other tax lawsuits totalling 45 million euro (42 million euro as at 31 December 2009) for which the Board of Directors, based on the lawyers' assessment, understands will not imply future losses to the old subsidiary referred above.

27 RELATED PARTIES

Balances and transactions with related parties are detailed as follows:

Sales and services rendered Purchases and services obtained
Transactions 30 September 2010 30 September 2009 30 September 2010 30 September 2009
Parent Company 123,793 107,627 - -
Jointly controlled companies 8,474,770 7,841,888 13,969,450 12,734,064
Associated companies 28,857,384 27,326,567 1,272,603 1,390,419
Other partners and Group companies 51,250,353 47,276,418 25,468,854 29,859,017
88,706,300 82,552,500 40,710,907 43,983,500
Interest income Interest expenses
Transactions 30 September 2010 30 September 2009 30 September 2010 30 September 2009
Parent Company - - - -
Jointly controlled companies - 116,515 3,173 6,528
Associated companies 49 - - -
Other partners and Group companies 67,068
67,117		 58,422
174,937		 146,871
150,044		 445,344
451,872
Accounts receivable Accounts payable
Balances 30 September 2010 31 December 2009 30 September 2010 31 December 2009
Parent Company 81,615 42,212 - -
Jointly controlled companies 4,068,396 2,633,332 4,311,345 5,803,997
Associated companies 26,602,112 2,044,450 15,529,557 1,655,097
Other partners and Group companies 18,797,964
49,550,087		 18,353,791
23,073,785		 13,571,679
33,412,581		 14,523,536
21,982,630
Loans
Balances 30 September 2010 Obtained
31 December 2009		 30 September 2010 Granted
31 December 2009
Parent Company - - - -
Jointly controlled companies - - 446,254 1,214,522
Associated companies - - - -
Other partners and Group companies 11,154,628 41,740,399 248,393 -
11,154,628 41,740,399 694,647 1,214,522

The caption "Other partners in Group companies" includes Sonae Industria, SGPS, SA and Sonae Capital, SGPS, SA affiliated, associated and jointly controlled companies and also other shareholders of affiliated companies or jointly controlled companies of Sonae, as well as other affiliated companies of the parent company Efanor Investimentos, SGPS, SA.

28 INCOME TAX

As at 30 September 2010 and 2009, income tax is detailed as follows:

30 September 2010 30 September 2009
Current tax 37,245,303 21,300,190
Deferred tax 26,828,126 (23,485,379)
64,073,429 (2,185,189)

29 RECONCILIATION OF CONSOLIDATED NET PROFIT

As at 30 September 2010 and 2009, the reconciliation of consolidated net profit can be analysed as follows:

30 September 2010 30 September 2009
Aggregate net profit 675,691,911 151,139,287
Proportionate method (97,211,783) 28,784,526
Harmonisation adjustments (7,429,802) (47,956,906)
Elimination of intragroup dividends (133,522,400) (166,520,780)
Elimination of intragroup capital gains and losses (61,487,809) 1,524,499
Elimination of intragroup provisions (268,466,323) 7,500,000
Consolidation adjustments to gains/(losses)
on sales of investments		 6,058,657 26,777,993
Others 3,041,763 7,031,551
Consolidated net profit for the period 116,674,214 8,280,170

30 EARNINGS PER SHARE

Earnings per share for the period were calculated taking into consideration the following amounts:

30 September 2010 30 September 2009
Net profit
Net profit taken into consideration t
o calculate basic earnings per share
(consolidated profit for the period)		 97,852,873 31,829,547
Effect of dilutive potential shares - -
Interest related to convertible bonds (net of tax) - -
Net profit taken into consideration to calculate diluted earnings per share 97,852,873 31,829,547
Number of shares
Weighted average number of shares used t
o calculate basic earnings
per share		 1,869,520,109 1,867,636,525
Effect of dilutive potential ordinary shares from convertible bonds - -
Outstanding shares related with share based payments 12,050,889 -
Shares related to performance bonus that can be bought at market price (5,101,577) -
Weighted average number of shares used t
o calculate diluted earnings
per share		 1,876,469,421 1,867,636,525
Earnings per share
Basic 0.052341 0.017043
Diluted 0.052147 0.017043

31 DIVIDENDS

In the Shareholders Annual General Meeting held on 27 April 2010, the payment of a gross dividend of 0.0315 euro per share (0.03 euro per share in 2009) corresponding to a total of 63,000,000 euro (60,000,000 euro in 2009) was approved.

32 SEGMENT INFORMATION

As described with more detail in the Management Report the operating segments used by Sonae management are as follows:

  • Food based retail
  • Specialised retail
  • Retail real estate
  • Shopping Centres
  • Telecommunications
  • Investment Management

The amounts reported below, are calculated, when applicable, excluding contributions to indirect income as explained in Note 34.

Sonae's reportable segment information regarding the income statement in accordance with IFRS 8 can be analysed as follows:

30 September 2010 Inter-segment 30 September 2009 Inter-segment
Turnover income income
Food based retail 2,449,257,147 (4,751,733) 2,336,478,416 (3,315,295)
Ex-Fuel 2,374,671,086 (4,751,733) 2,238,061,503 (3,515,295)
Fuel 74,586,061 - 98,416,913 -
Specialised retail 869,761,764 - 756,305,029 -
Retail real estate 95,228,485 (89,061,687) 91,026,112 (85,771,946)
Shopping centres 142,655,891 (9,891,646) 133,299,827 (9,689,574)
Telecommunications 684,127,676 (14,882,131) 716,588,980 (18,573,349)
Investment management 158,766,511 (501,548) 146,990,259 (119,334)
Eliminations and adjustments (114,125,077) (870,214) (114,547,789) (2,744,726)
Total direct consolidated 4,285,672,397 (119,958,959) 4,066,140,834 (120,414,224)
Operational cash-flow (EBITDA)
Food based retail 149,034,592 119,933,083
Specialised retail 16,238,480 10,796,060
Retail real estate 97,047,664 84,852,017
Shopping centres 69,459,299 63,235,519
Telecommunications 148,988,549 136,526,284
Investment management 3,654,418 31,226,232
Eliminations and adjustments 8,251,042 15,701,410
Total direct consolidated 492,674,044 462,270,605
Operational profit/(loss) (EBIT)
Food based retail 89,901,154 64,982,912
Specialised retail (15,983,043) (14,911,060)
Retail real estate 72,998,732 65,113,244
Shopping centres 67,070,131 60,898,134
Telecommunications 50,798,688 17,698,295
Investment management (1,811,199) 27,541,903
Eliminations and adjustments (2,775,377) 2,447,719
Total direct consolidated 260,199,086 223,771,147
30 September 2010 30 September 2009
Investment (CAPEX)
Food based retail 57,737,134 95,795,796
Specialised retail 59,359,223 72,167,062
Retail real estate 17,762,053 77,833,064

Shopping centres 40,870,471 74,069,927 Telecommunications 87,522,758 103,338,430 Investment management 13,091,036 32,359,345 Eliminations and adjustments (1) 1,825,830 6,440,743 Total consolidated 278,168,505 462,004,367

Invested capital
Food based retail
592,881,257
483,969,819
Specialised retail
393,134,586
249,684,220
Retail real estate
1,460,740,058
1,523,249,390
Shopping centres
1,582,754,281
1,660,873,322
Telecommunications
771,710,617
751,867,339
Investment management
154,372,003
150,752,432
Eliminations and adjustments (1)
(56,507,595)
(38,989,061)
Total consolidated
4,899,085,207
4,781,407,461
Total net debt (2)
Retail businesses
1,355,795,091
1,188,231,638
Shopping centres
841,809,521
926,594,447
Telecommunications
353,877,260
375,961,568
Investment management
73,593,531
93,490,195
Holding (1)
510,535,565
495,839,007		 30 September 2010 31 December 2009
Total consolidated 3,135,610,968 3,080,116,855

(1) Includes Sonae Individual accounts.

(2) Includes shareholders loans.

The caption "Eliminations and Adjustments" can be analysed as follows:

Turnover Operational cash-flow (EBITDA) Operational profit/(loss) (EBIT)
30 September 2010 30 September 2009 30 September 2010 30 September 2009 30 September 2010 30 September 2009
Inter-segment income (119,958,959) (120,414,224) (866,428) 561 (1,526,324) 557
Adjustment on telecommunications provisions (1) - - 4,456,633 13,625,971 - -
Others 5,833,882 5,866,435 4,660,837 2,074,878 (1,249,053) 2,447,162
Eliminations and adjustments (114,125,077) (114,547,789) 8,251,042 15,701,410 (2,775,377) 2,447,719

(1) The sub-holding considers provisions as EBITDA.

(2) Amounts offset with turnover for management purposes.

Investment Invested capital
30 September 2010 30 September 2009 30 September 2010 31 December 2009
Inter-segment balances - 3,946,139 52,487,224 94,303,349
Cash settled equity swap (3) - - (119,860,307) (132,711,536)
Others 1,825,830 2,494,604 10,865,488 (580,874)
Eliminations and adjustments 1,825,830 6,440,743 (56,507,595) (38,989,061)

(3) Financial Instrument reported in Note 18.

Glossary:

Invested capital = Gross real estate assets + other fixed assets (including Goodwill) - amortisations and impairment losses + financial investments + working capital (includes non-current assets and non-current liabilities excluding total net debt); all figures at book value with the exception of Shopping Centres building block;

Total Net debt = Bonds + bank loans + other loans + shareholders loans + finance leases +derivatives - cash, bank deposits and current investments;

EBITDA = Turnover + Investment income + other income – dividends- negative goodwill -impairment reversion - operating costs;

CAPEX = Investments in tangible and intangible assets, investment properties and acquisitions of subsidiaries;

Direct income - excludes contributions to indirect income;

Indirect Income - includes the Shopping Centre operating segment contributions net of taxes to consolidated income statement, arising from: (i) investment property valuations; (ii) capital gains (losses) on the sale of financial investments, joint ventures or associates; (iii) impairment losses (including goodwill) and; (iv) provision for Development Funds at Risk.

33 COMMITMENTS WITH "INFORMATION SOCIETY"

Upon being given the UMTS Licence, Optimus (now Sonaecom – Serviços de Comunicações) assumed commitments in the area of promotion of the Information Society, totalling 274 million euro, to be complied with up to the end of the licence period (2015).

In accordance with the Agreement established on 5 June 2007 with the Ministry of Public Works, Transport and Communications ("MOPTC"), part of these commitments, up to 159 million euro will be realised through own projects which qualify as contributions to the Information Society and incurred under the normal activities of Sonaecom – Serviços de Comunicações, S.A. (investment in the network and technology not resulting from the need to comply with the obligations assumed when the UMTS Licence was granted, and activities relating to research, development and promotion of services, contents and applications) which must be recognised by the MOPTC and by entities created especially for that purpose. At 30 September 2010 the total amount was already incurred and validated by the above referred entities, so at this date there are no additional responsibilities related to these commitments. These charges were recorded in the financial statements at the moment the projects were carried out and the estimated costs became known.

The remaining commitments, up to the amount of around 116 million euro, will be realised as agreed between Sonaecom- Serviços de Comunicações and MOPTC, through contributions to the "Iniciativas E" project (offer of modems, discounts on tariffs, cash contributions, among others, relating to the widespread use of broadband internet by students and teachers), the contributions being made through an Open fund called Information Society Fund (Fundo para a Sociedade de Informação), created by the three mobile operators operating in Portugal. The total responsibility is recognized like an additional cost of the license UMTS, by offset of the caption "Other non-current liabilities" and "Other current liabilities". In this way, as of 30 September 2010, the totality of the responsibilities with such commitments find itself fully registered in the consolidated financial statements attached.

34 PRESENTATION OF CONSOLIDATED INCOME STATEMENT

In the Management Report, and for the purposes of calculating financial indicators as EBITDA, EBIT and as well for segments income presentation purposes, the income statement is divided between Direct Income and Indirect Income, according to common practice in the Shopping Centre business.

The Indirect Income includes the contribution of the Shopping Centre operating segment to the consolidated income statement, net of taxes, that result from: (i) valuation of investment properties; (ii) gains (losses) with the sale of financial investments, joint ventures or associates; (iii) impairment losses (including goodwill) and (iv) provisions for "Development Funds at Risk".

The values of the EBITDA and EBIT is calculated only in the Direct Income, excluding the indirect contributions.

The reconciliation between consolidated income and direct/indirect income for the nine month periods ended 30 September 2010 and 2009 can be summarised as follows:

30 September 2010 30 Sptember 2009
Consolidated Indirect income Direct income Consolidated Indirect income Direct income
Operational income
Sales 3,422,308,853 - 3,422,308,853 3,232,267,508 - 3,232,267,508
Services rendered 863,363,543 - 863,363,543 833,873,326 - 833,873,326
Value created on investment properties 3,391,846 3,391,846 - (112,829,032) (112,829,032) -
Investment income - - - - - -
Dividends 405,263 - 405,263 383,314 - 383,314
Other 5,485,440 (949,478) 6,434,918 34,120,355 875,468 33,244,887
Other income
Badwill - - - 90,051 - 90,051
Reversion of impairment losses 3,762,961 - 3,762,961 1,885,593 - 1,885,593
Other 313,949,587 - 313,949,587 295,653,386 - 295,653,386
Total income 4,612,667,493 2,442,368 4,610,225,125 4,285,444,501 (111,953,564) 4,397,398,065
Total cost (a) 4,353,297,240 3,676,463 4,349,620,777 4,177,319,794 4,076,191 4,173,243,603
Depreciation and amortisation 217,960,920 - 217,960,920 221,370,993 - 221,370,993
Provisions and impairment losses 25,080,145 2,603,500 22,476,645 20,316,978 1,212,869 19,104,109
Profit before financial results and share of results of
associated		 259,370,253 (1,234,095) 260,604,348 108,124,707 (116,029,755) 224,154,462
Financial profit/(loss) (77,819,192) - (77,819,192) (98,173,660) - (98,173,660)
Share of results of associated undertakings (803,418) (776,017) (27,401) (3,856,066) (5,877,327) 2,021,261
Profit before income tax 180,747,643 (2,010,112) 182,757,755 6,094,981 (121,907,082) 128,002,063
Income tax (64,073,429) (22,126,027) (41,947,402) 2,185,189 21,696,074 (19,510,885)
Net profit for the period 116,674,214 (24,136,139) 140,810,353 8,280,170 (100,211,007) 108,491,177
- attributable to equity holders of Sonae 97,852,873 (14,811,429) 112,664,302 31,829,547 (64,132,971) 95,962,518
- attributable to non controlling interests 18,821,341 (9,324,710) 28,146,051 (23,549,377) (36,078,036) 12,528,659
Operational cash-flow (EBITDA) (b) 492,674,044 462,270,606

(a) The amount recorded in Indirect income relates mainly to the reduction of investment properties value, accruals for "DevelopmentFunds at Risk" and recognized impairment losses;

(b) EBITDA is computed as Turnover + Other Income - negative goodwill - Impairment losses reversal – Operational expenses + Gains/(losses) in disposals.

35 APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Board of Directors and authorized for issue on 16 November 2010.

The Board of Directors

Belmiro Mendes de Azevedo

Álvaro Cuervo Garcia

Bernd Bothe

Christine Cross

Michel Marie Bon

José Neves Adelino

Duarte Paulo Teixeira de Azevedo

Ângelo Gabriel Ribeirinho dos Santos Paupério

Nuno Manuel Moniz Trigoso Jordão

Condensed individual financial statements

CONDENSED INDIVIDUAL BALANCE SHEETS AS AT 30 SEPTEMBER 2010 AND 2009 AND AS AT 31 DECEMBER 2009

(Translation of condensed individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

ASSETS Notes 30.September.2010 30.September.2009 31.December.2009
NON-CURRENT ASSETS:
Tangible assets 242,802 294,386 265,384
Intangible assets 1,192 6,494 5,776
Investments in affiliated companies 4 3,019,380,722 2,997,698,363 2,991,917,733
Other investments 5 61,767,380 83,859,880 77,489,880
Other non-current assets 6 553,578,871 537,984,585 543,934,785
Total Non-Current Assets 3,634,970,967 3,619,843,708 3,613,613,558
CURRENT ASSETS:
Trade accounts receivable and other current assets 7 4,487,563 44,930,623 11,693,493
Cash and cash equivalents 8 81,982 191,677 2,769,998
Total Current Assets 4,569,545 45,122,300 14,463,491
TOTAL ASSETS 3,639,540,512 3,664,966,008 3,628,077,049
EQUITY AND LIABILITIES
EQUITY:
Share capital 9 2,000,000,000 2,000,000,000 2,000,000,000
Reserves and retained earnings 1,032,798,538 1,002,145,486 996,333,036
Profit for the period 64,946,032 92,328,887 91,729,048
TOTAL EQUITY 3,097,744,570 3,094,474,373 3,088,062,084
LIABILITIES:
NON-CURRENT LIABILITIES:
Loans 1
0		 514,018,887 511,470,264 510,456,528
Total Non-Current Liabilities 514,018,887 511,470,264 510,456,528
CURRENT LIABILITIES:
Loans 1
0		 21,298,859 51,952,400 24,950,000
Trade creditors and other current liabilities 1
1		 6,478,196 7,068,971 4,608,437
Total Current Liabilities 27,777,055 59,021,371 29,558,437
TOTAL EQUITY AND LIABILITIES 3,639,540,512 3,664,966,008 3,628,077,049

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

Notes th Quarter
3
2010		 th Quarter
3
2009		 30.September.2010 30.September.2009
Services rendered 262,500 560,425 262,500 2,718,242
Investment income 1
4		 - 1,464,872 71,616,617 94,981,321
Financial income 3,951,583 4,610,726 11,966,199 20,753,476
Other income 102,663 14,126 640,503 24,748
External supplies and services (640,975) (928,197) (2,050,164) (2,304,299)
Staff costs (520,370) (1,425,897) (1,615,728) (3,680,881)
Depreciation and amortisation (10,276) (15,142) (35,925) (43,691)
Financial expenses (5,512,976) (4,965,936) (15,251,332) (19,948,269)
Other expenses (43,885) (49,886) (586,638) (180,408)
Profit/(Loss) before taxation (2,411,736) (734,909) 64,946,032 92,320,239
Taxation - - - 8,648
Profit/(Loss) after taxation (2,411,736) (734,909) 64,946,032 92,328,887
Profit/(Loss) per share
Basic 1
5		 (0.001206) (0.000367) 0.032473 0.046164
Diluted 1
5		 (0.001205) (0.000367) 0.032461 0.046164

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009

(Translation of the individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

3th Quarter
2010		 3th Quarter
2009		 30.September.2010 30.September.2009
Net Profit / (Loss) for the period (2,411,736) (734,909) 64,946,032 92,328,887
Changes on fair value of available-for-sale
financial assets		 1,676,327 (2,052,861) 12,026,107 (85,495,843)
Changes in hedge and fair value reserves 855,717 (1,515,582) (4,566,166) (7,474,159)
Other comprehensive income for the period 2,532,044 (3,568,443) 7,459,941 (92,970,002)
Total comprehensive income for the period 120,308 (4,303,352) 72,405,973 (641,115)

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009

(Translation of condensed financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

Reserves and Retained Earnings
Share
Capital		 Own
Shares		 Legal
Reserve		 Fair value
Reserve		 Hedging
Reserve		 Other Reserves
and Retained
Earnings		 Total Reserves
and Retained
Earnings		 Net Profit/(Loss) Total
Balance as at 1 January 2009 2,000,000,000 - 161,705,974 581,929,609 307,070 380,700,680 1,124,643,333 30,472,155 3,155,115,488
Total comprehensive income for the period - - - (85,495,843) (7,474,159) - (92,970,002) 92,328,887 (641,115)
Appropriation of profit of 2008:
Transfer to legal reserves and retained earnings
Dividends distributed
Purchase of own shares
Disposal / attribution of own shares to employees		 -
-
-
-		 -
-
696,429
(696,429)		 1,523,608
-
-
-		 -
-
-
-		 -
-
-
-		 -
(31,051,453)
-
-		 1,523,608
(31,051,453)
-
-		 (1,523,608)
(28,948,547)
-
-		 -
(60,000,000)
696,429
(696,429)
Balance as at 30 September 2009 2,000,000,000 - 163,229,582 496,433,766 (7,167,089) 349,649,227 1,002,145,486 92,328,887 3,094,474,373
Balance as at 1 January 2010 2,000,000,000 - 163,229,582 488,904,537 (5,807,343) 350,006,260 996,333,036 91,729,048 3,088,062,084
Total comprehensive income for the period - - - 12,026,107 (4,566,166) - 7,459,941 64,946,032 72,405,973
Appropriation of profit of 2009:
Transfer to legal reserves and retained earnings
Dividends distributed
Share based payments		 -
-
-		 -
-
-		 4,586,452
-
-		 -
-
-		 -
-
-		 24,142,596
-
276,513		 28,729,048
-
276,513		 (28,729,048)
(63,000,000)
-		 -
(63,000,000)
276,513
Balance as at 30 September 2010 2,000,000,000 - 167,816,034 500,930,644 (10,373,509) 374,425,369 1,032,798,538 64,946,032 3,097,744,570

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL CASH FLOW STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of the condensed financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

Notes 3th Quarter
2010		 3th Quarter
2009		 30.September.2010 30.September.2009
OPERATING ACTIVITIES
Net cash flow from operating activities (1) (1,362,593) (203,410) (2,231,637) (554,371)
INVESTMENT ACTIVITIES
Cash receipts arising from:
Investments 4,887,500 9,983,062 15,722,500 20,388,062
Tangible and intangible assets 80,795 - 659,186 10,123
Interest and similar income 6,832,685 11,624,028 14,593,577 38,345,983
Dividends - 23,410,080 71,616,617 93,516,449
Loans granted 397,589,302 142,930,938 802,347,750 297,916,207
Cash payments arising from: 409,390,282 187,948,108 904,939,630 450,176,824
Investments (142,877) (1,922,959) (142,877) (2,461,627)
Tangible and intangible assets (15,460) (95,714) (77,599) (273,721)
Loans granted (393,711,001) (129,045,000) (825,482,267) (279,856,000)
(393,869,338) (131,063,673) (825,702,743) (282,591,348)
Net cash used in investment activities (2) 15,520,944 56,884,435 79,236,887 167,585,476
FINANCING ACTIVITIES
Cash receipts arising from:
Loans obtained 454,060,000 217,000,000 1,018,825,000 927,800,000
Disposal of own shares - - - 637,113
454,060,000 217,000,000 1,018,825,000 928,437,113
Cash payments arising from:
Loans obtained
Interests and similar charges		 (465,885,000) (274,600,000) (1,022,350,000) (1,014,850,000)
Dividends (3,077,393) (2,840,759) (13,330,649) (20,955,194)
Purchase of own shares -
-		 -
-		 (62,986,476)
-		 (59,986,491)
(696,429)
(468,962,393) (277,440,759) (1,098,667,125) (1,096,488,114)
Net cash used in financing activities (3) (14,902,393) (60,440,759) (79,842,125) (168,051,001)
Net increase in cash and cash equivalents (4) = (1) + (2) + (3) (744,042) (3,759,734) (2,836,875) (1,019,896)
Cash and cash equivalents at the beginning of the period 677,165 3,149,011 2,769,998 409,173
Cash and cash equivalents at the end of the period
8		 (66,877) (610,723) (66,877) (610,723)
The accompanying notes are part of these condensed individual financial statements. The Board of Directors
81

NOTES TO THE CONDENSED INDIVIDUAL

FINANCIAL STATEMENTS FOR THE PERIOD ENDED

30 SEPTEMBER 2010

(Translation of the condensed individual financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails)

(Amounts expressed in euro)

1 INTRODUCTION

SONAE, SGPS, SA ("Sonae Holding"), has its head-office at Lugar do Espido, Via Norte, Apartado 1011, 4470-909 Maia, Portugal.

2 BASIS OF PREPARATION

Interim financial statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

3 PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those described in the file of annual financial statements for the year ended 31 December 2009.

4 INVESTMENTS IN AFFILIATED COMPANIES

As at 30 September 2010 and 31 December 2009 the company held investments in the following affiliated companies:

30.September.2010
% Held Carrying Acquisition Fair Value
Company amount cost Reserve
Sonae Investimentos SGPS, SA (a) 82.48% 1,690,800,661 1,326,729,831 364,070,830
Sonae Sierra SGPS, SA (b) 50.00% 626,707,350 490,113,339 136,594,011
Sonaecom, SGPS, SA 0.23% 1,187,527 921,724 265,803
MDS, SGPS, SA 46.92% 43,173,879 43,173,879 -
Sontel BV 42.86% 191,341,400 191,341,400 -
Sonae Investments BV 100.00% 550,000,000 550,000,000 -
Others - 4,669,905 4,669,905 -
Impairment (88,500,000) - -
Total 3,019,380,722 2,606,950,078 500,930,644
31.December.2009
% Held Carrying Acquisition Fair Value
Company amount cost Reserve
Sonae Investimentos SGPS, SA (a) 82.48% 1,690,800,661 1,326,729,831 364,070,830
Sonae Sierra SGPS, SA (b) 50.00% 614,248,500 490,113,339 124,135,161
Sonaecom, SGPS, SA 0.23% 1,620,270 921,724 698,546
MDS, SGPS, SA 45.71% 27,879,874 27,879,874 -
Sontel BV 42.86% 191,341,400 191,341,400 -
Sonae Investments BV 100.00% 550,000,000 550,000,000 -
Others - 4,527,028 4,527,028 -
Impairment (88,500,000) - -
Total 2,991,917,733 2,591,513,196 488,904,537
  • (a) The value of this investment is the price paid in the public tender offer for the de-listing occurred in 2006. Since that date no change in the value of the investment was recorded.
  • (b) Market value was determined based on an independent valuation for the period of assets held by this affiliated company, after deduction of associated net debt and of the share attributable to non-controlling interests.

5 OTHER INVESTMENTS

As at 30 September 2010 and 31 December 2009 other investments are as follows:

30.September.2010 31.December.2009
Magma No. 1 Securitisation Notes 61,717,500 77,440,000
Others 49,880 49,880
Total 61,767,380 77,489,880

6 OTHER NON-CURRENT ASSETS

As at 30 September 2010 and 31 December 2009 other non-current assets are detailed as follows:

30.September.2010 31.December.2009
Loans granted to group companies 553,578,871 543,934,785

7 TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS

As at 30 September 2010 and 31 December 2009 trade accounts receivable and other current assets are detailed as follows:

30.September.2010 31.December.2009
Trade accounts receivable 294 1,767,521
Group companies - 7,078,238
Taxes and contributions receivable 688,624 1,387,264
Accrued income and prepayments 3,480,632 648,644
Others 318,013 811,826
Total 4,487,563 11,693,493

The caption "Accrued income and prepayments" mainly includes receivables relating to interests, from loans granted to group companies (Note 6).

8 CASH AND CASH EQUIVALENTS

As at 30 September 2010 and 31 December 2009 cash and cash equivalents are detailed as follows:

30.September.2010 31.December.2009
Cash at hand 89 7,042
Bank deposits 81,893 2,762,956
Cash and cash equivalents on the balance sheet 81,982 2,769,998
Bank overdrafts
Cash and cash equivalents on the cash flow		 (148,859) -
statement (66,877) 2,769,998

9 SHARE CAPITAL

As at 30 September 2010 and 31 December 2009 share capital consisted of 2,000,000,000 ordinary shares of 1 euro each.

10 LOANS

As at 30 September 2010 and 31 December 2009 this caption included the following loans:

30.September.2010 31.December.2009
Nominal value of bonds 500,000,000 500,000,000
Up-front fees not yet charged to income statement (3,061,645) (1,761,923)
Bonds 496,938,355 498,238,077
Derivatives 17,080,532 12,218,451
Non-current loans 514,018,887 510,456,528
Commercial paper 21,150,000 24,950,000
Bank overdrafts 148,859 -
Current loans 21,298,859 24,950,000

Non-current loans

Bonds SONAE / 05 amounting to 100,000,000 euro, repayable after 8 years, in one installment, on 31 March 2013. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly.

Bonds Sonae 2007/2014 amounting to 150,000,000 euro, repayable after 7 years, in one installment, on 11 April 2014. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 10th and 12th coupons.

Bonds Sonae 2010/2015 amounting to 250,000,000 euro, repayable after 5 years, in one installment, on 16 April 2015. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly.

Current loans

On 16 April 2010, Sonae 2006/2011 bond loan of 250,000,000 euro was partially repaid in the amount of 220,000,000 euro. On 10 May 2010 proceeded to the early repayment of the remaining in the amount of 30,000,000.

Commercial paper - Program of issuance of short-term commercial paper, by private subscription, released on August 23, 2004, valid for a period of 10 years with an extension possibility by Company's initiative, with a maximum of 350,000,000 euro.

The above mentioned loans are unsecured and its estimated fair value is considered to be near its carrying amount, as they bear interests at variable market rates.

Interest rate as at 30 September 2010 of the bonds and bank loan was, on average, 2.31% (1.67% as at 31 December 2009).

Maturity of Borrowings

As at 30 September 2010 and 31 December 2009 the analysis of the maturity of loans is as follows:

30.September.2010 31.December.2009
N+1 21,298,859 24,950,000
N+2 - 250,000,000
N+3 100,000,000 -
N+4 150,000,000 100,000,000
N+5 250,000,000 150,000,000

11 TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009, trade creditors and other current liabilities are detailed as follows:

30.September.2010 31.December.2009
Trade creditors 916,868 985,568
Group companies 275,000 -
Taxes and contributions payable 33,438 349,693
Accrued expenses 5,163,614 3,108,281
Others 89,276 164,895
Total 6,478,196 4,608,437

12 CONTINGENT LIABILITIES

As at 30 September 2010 and 31 December 2009, contingent liabilities are detailed as follows:

30.September.2010 31.December.2009
Guarantees given:
on tax claims 307,664 216,835
on judicial claims 145,256 74,490
Guarantees given in favour of subsidiaries 69,629,364 256,137

a) Guarantees given to Tax Authorities in favour of subsidiaries to suspend claims from tax authorities.

13 RELATED PARTIES

Balances and transactions with related parties are detailed as follows:

Transactions
Group companies
534,355
2,520,749
Jointly controlled companies
150,000
-
Other partners in group companies
75,000
216,959
Services rendered
759,355
2,737,708
Group companies
914,772
481,655
Jointly controlled companies
31,783
63,023
Other partners in group companies
105,699
216,095
Purchases and services obtained
1,052,254
760,773
Group companies
9,698,909
15,932,455
Interest income
9,698,909
15,932,455
Group companies
331,063
-
Interest expenses
331,063
-
Group companies
57,960,737
70,106,369
Jointly controlled companies
13,655,880
23,410,080
Dividend income (N
71,616,617
93,516,449
o
te 14)		 30.September.2010 30.September.2009
30.September.2010 31.December.2009
Balance
Group companies 3,238,309 8,927,985
Jointly controlled companies 150,000 483,632
Other partners in group companies 79,056 133,710
Accounts receivable 3,467,365 9,545,327
Group companies 766,511 547,244
Jointly controlled companies 385 -
Other partners in group companies 14,244 106,775
Accounts payable 781,140 654,019
Group companies 553,578,871 544,374,785
Loans granted (N
o
te 18)		 553,578,871 544,374,785
Group companies 275,000 -
Loans obtained (N
o
te 18)		 275,000 -

All Sonae, SGPS, SA subsidiaries, associates and joint ventures are considered related parties and are identified in Consolidated Financial Statements. All Efanor Investimentos, SGPS, SA, subsidiaries, including the ones of Sonae Indústria, SGPS, SA and of Sonae Capital, SGPS, SA are also considered related parties.

14 INVESTMENTS INCOME

As at 30 September 2010 and 2009, investment income can be detailed as follows:

30.September.2010 30.September.2009
Dividends 71,616,617 93,516,449
Gains / (losses) on sale investments - 1,464,872
71,616,617 94,981,321

The dividends mentioned above were distributed by the affiliates Sonae Investimentos, SGPS, SA (57,734,657 euro), Sonae Sierra, SGPS, SA (13,655,880 euro) and Sonaegest, SA (226,080 euro).

15 EARNINGS PER SHARE

Earnings per share for the period were calculated taking into consideration the following amounts:

30.September.2010 30.September.2009
Net profit
Net profit taken into consideration to calculate basic
earnings per share (Net profit for the period)		 64,946,032 92,328,887
Effect of dilutive potential shares - -
Interests related to convertible bonds (net of tax)
Net profit taken into consideration to calculate diluted		 - -
earnings per share: 64,946,032 92,328,887
Number of shares
Weighted average number of shares used to calculate
basic earnings
Effect of dilutive potential ordinary shares from
convertible bonds
Outstanting shares related with deferred performance
bonus
Number of shares that could be acquired at average
market price
Weighted average number of shares used to calculate
diluted earnings per share		 2,000,000,000
-
1,322,666
(554,327)
2,000,768,339		 2,000,000,000
-
-
-
2,000,000,000
Profit/(Loss) per share
Basic 0.032473 0.046164
Diluted 0.032461 0.046164

16 DIVIDENDS

In the annual General Meeting held on 27 April 2010, were allocated a gross dividend of 0.0315 euro per share (0.03 euro per share in 2009), corresponding to a total of 63,000,000 euro (60,000,000 euro in 2009).

17 APPROVAL OF FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Board of Directors and authorized for issue on 16 November 2010.

18 INFORMATION REQUIRED BY LAW

Decree-Law nr 318/94 art 5 nr 4

During the period ended 30 September 2010 shareholders' loan contracts were entered into with the following companies:

Sonaecenter Serviços, SA

Sonae Investments, BV

Sontel, BV

During the period ended 30 September 2010 short-term loan contracts were entered into with the following companies:

Sonaecom, SGPS, SA

Sonae Investimentos, SGPS, SA

As at 30 September 2010 amounts owed by affiliated undertakings can be summarized as follows:

Companies Closing Balance
MDS, SGPS, SA 16,188,645
Sonae Investments, BV 500,969,959
Sonaecenter Serviços, SA 236,267
Sontel, BV 36,184,000
Total 553,578,871

As at 30 September 2010 amounts owed from affiliated undertakings can be summarized as follows:

Companies Closing Balance
Sonaecenter Serviços, SA 275,000
Total 275,000

The Board of Directors

Belmiro Mendes de Azevedo

Álvaro Cuervo Garcia

Bernd Bothe

Christine Cross

Michel Marie Bon

José Neves Adelino

Duarte Paulo Teixeira de Azevedo

Álvaro Carmona e Costa Portela

Ângelo Gabriel Ribeirinho dos Santos Paupério

Nuno Manuel Moniz Trigoso Jordão

SAFE HARBOUR

This document may contain forward-looking information and statements, based on management's current expectations or beliefs. Forwardlooking statements are statements that are not historical facts.

These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to, changes in regulation, industry and economic conditions; and the effects of competition. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors and analysts are cautioned that forwardlooking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forwardlooking information and statements. You are cautioned not to put undue reliance on any forward-looking information or statements. We do not undertake any obligation to update any forward-looking information or statements.

Report available at Sonae's institutional website www.sonae.pt

Media and Investor Contacts

Miguel Rangel Head of Institutional Relations and Communication [email protected] Tel: + 351 22 010 4705

Patrícia Mendes Head of Investor Relations [email protected] Tel.: + 351 22 010 4794

Sonae Lugar do Espido Via Norte 4471-909 Maia Portugal Tel.:+ 351 22 9487522 Fax: + 351 22 940 4634

Sonae is listed on the Euronext Stock Exchange. Information may be accessed on Reuters under the symbol SONP.IN and on Bloomberg under the symbol SONPL.

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