Sonae SGPS

Interim / Quarterly Report • Aug 3, 2009

SONAE INDÚSTRIA, SGPS, SA

Registered Office: Lugar do Espido, Via Norte, Maia, Portugal Registered at the Commercial Registry of Maia Registry and tax identification No. 506 035 034 Share Capital: € 700 000 000 Publicly Traded Company

Activity Report

and

Consolidated Financial Statements

January – June 2009

According to the International Accounting Standard 34 - Interim Financial Report

Contents

ACTIVITY REPORT

1- MESSAGE FROM CARLOS BIANCHI DE AGUIAR, CEO

2- HIGHLIGHTS OF FINANCIAL PERFORMANCE IN 1H 2009

3- GEOGRAPHIC REVIEW OF OPERATIONS

3.1- Iberia

3.2- Central Europe (Germany, France and the UK)

3.3- Rest of the World (Canada, Brazil and South Africa)

4- FINANCIAL REVIEW OF 1H 2009

5- LOOKING FORWARD

QUALIFIED SHAREHOLDINGS, APENDICES TO THE ACTIVITY REPORT AND STATEMENT ACCORDING WITH ART 246 CMVM CODE

Qualified Shareholdings Appendix required by Article 9, no. 1 of the CMVM Regulation no. 05/2008 Appendix required by Article 14, no. 7 of the CMVM Regulation no. 05/2008

Statement issued according and for the purposes of paragraph c) of Article 246. CMVM code

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of financial position Consolidated Income Statement Consolidated Statements of Comprehensive Income Consolidated statements of changes in Shareholders' Funds Consolidated statements of Cash Flow Notes to the Consolidated Financial Statements

STATUTORY EXTERNAL AUDITOR'S REPORT

ACTIVITY REPORT

1- Message from Carlos Bianchi de Aguiar, CEO

"As we expected, the business environment remains difficult in the regions where we operate. We have been taking restructuring measures in order to balance the supply to demand. Some of the measures we implemented are already impacting our performance and we expect to see further benefits in the coming months.

During 2Q 2009, we improved recurrent EBITDA when compared with 1Q 2009, as a result of a decrease in our cost base and improved efficiency, in line with our expectations.

Volumes sold in our markets appear to have stabilized, except in Germany and France. Downward pressure on prices continues in all markets.

In recent quarters, we have been implementing the restructuring measures, we had announced, in order to adapt our product supply to lower market demand and to reduce our cost structure. Measures to reduce fixed costs already resulted in a decrease of 27 million euros in 1H 2009, when compared to the same period last year. This trend will continue in the next quarter, since two sites in France, St. Dizier and Châtellerault were closed in June.

In Germany, in addition to the short-time work already implemented at the beginning of 2009, we are entering into negotiations with the worker representatives to close a further plant located in Central Europe (Kaisersesch). This plant has an annual capacity of approximately 350 thousand m 3 .

One of our main focuses has been cash flow management and we have successfully reduced Working Capital and, thereby, Net Debt during this quarter decreased by 21 million euros.

We will continue to work hard in these tough times and I am counting on a special effort from all our employees. I believe, we will come out of this crisis as an even stronger and more focused Group than before. I would also like to thank our shareholders and customers for their support and continuing confidence in our Group."

2- Highlights of Financial Performance in 1H 2009

• Comparing 2Q 2009 with 1Q 2009:
• o Turnover decreased by 6% and sales volumes fell 3%, which represents a further reduction in the rate of quarter on quarter decline;
• o Sales volume increased in all countries except Germany and France;
• o Recurrent EBITDA has improved by 111% from 6 to 13 million euros, as a result of cost reductions;
• o Net Debt decreased by 21 million euros, due to Working Capital savings achieved.
• Comparing 1H 2009 with 1H 2008, Turnover decreased by 30% to 671 million euros, mainly due to a sharp sales volume decrease caused by the world economic crisis.

								(euro millions)
	2008	2Q'08	1Q'09	2Q'09	2Q'09 / 2Q'08	2Q'09 / 1Q'09	1H'08	1H'09	% chg 09/08
Turnover	1,769	467	346	325	(31%)	(6%)	965	671	(30%)
EBITDA	139	38	4	9	(75%)	151%	126	13	(90%)
Recurrent EBITDA	100	38	6	13	(67%)	111%	79	19	(77%)
Recurrent EBITDA Margin %	5.7%	8.1%	1.7%	3.9%			8.2%	2.8%
Net Profit/(Loss) attributable to Shareholders of Sonae Indústria	(108)	(7)	(40)	(34)	(412%)	16%	6	(74)
Net Debt	890	827	917	896			827	896

3- Geographic Review of Operations

3.1- Iberia

Iberia Turnover & Recurrent EBITDA Margin

In Iberia, 1Q 2009 would appear to have seen the bottom of the crisis. During 2Q 2009, despite the negative seasonal effect of the Easter period, our volumes sold increased slightly and prices have stabilized.

Nevertheless, when compared with 1H 2008, we are still facing much tougher market conditions. New housing permits in Spain declined by 65%¹ (YoY Jan - April).

In relation to fixed costs, we are adopting short-time work solutions in almost all units in Spain and we expect to achieve further reductions in costs.

Iberian turnover in 1H 2009 decreased by 32% compared to 1H 2008 and recurrent EBITDA margin declined to 9.4%, 3 p.p. below the corresponding value for 1H 2008.

¹ Source: Ministerio de Fomento, June 2009

3.2- Central Europe (Germany, France and the UK)

Central Europe has also suffered from a very low level of activity in the construction and furniture industry which has negatively affected the demand for wood based panels.

Central Europe Turnover & Recurrent EBITDA Margin

In Germany, demand is still very weak and additional volumes from the Eastern Countries are being imported into the German market as a result of the strength of the Euro.

Our fixed costs have decreased as a result of the measures we have implemented. Unfortunately, the positive impacts on our margins were offset by the weakening of market prices of our products.

In order to further adapt our capacity to lower demand we continued to implement our restructuring plan. Following the production stoppage in Duisburg and the short-time work implemented in all the other plants, we are now entering into negotiations to close the Kaisersesch plant.

In France, the demand for wood based products has been falling and our volumes sold in this quarter have decreased a further 20%, when compared to 1Q 2009.

When compared to the same period last year, housing permits have declined by 18%² (YoY Jan - May). This has lead to a decline in volumes sold of 37% and in Turnover of 46% (compared to 1H 2008).

The restructuring that was announced at the beginning of 2009 has been implemented according to plan and the St. Dizier and Châtellerault plants closed in June, which will positively impact recurrent EBITDA in coming quarters.

In the UK, levels of demand are very low in most sectors. Market statistics still show a continuing downward trend with orders for new housing dropping by 42%³ (YoY Jan - May).

² Source: Service économie statistiques et prospective (Ministère de l'Écologie, de l'Energie, du Développement durable et de l'Aménagement du territoire), June 2009

³ Source : Office for National Statistics UK, July 2009

Despite this weak demand, when compared to 1Q 2009, we have increased our EBITDA margin, as a result of an increase in value-added products sold due to improvements achieved in service and product innovation.

In addition, the Coleraine plant stopped PB production in March and demand is being satisfied from the Knowsley site, positively impacting operating costs.

In Central Europe, when comparing 1H 2008 to 1H 2009, turnover decreased by 35% to 361 million euros and recurrent EBITDA fell to a negative 19 million euros.

3.3- Rest of the World (Canada, Brazil and South Africa)

Our performance in Canada, Brazil, and South Africa reflects a combination of mixed market trends and specific impacts which make direct comparisons difficult.

RoW Turnover & Recurrent EBITDA Margin

In Brazil, the new MDF capacity coming into the market is negatively affecting our sales volumes, and is putting pressure on MDF prices.

Despite this increase in capacity, we were able to slightly increase our EBITDA margin, when compared to 1Q 2009, as variable costs have decreased.

A consolidation of the market has already started with the announcement of a merger between two of our competitors: Duratex and Satipel.

In North America, US Housing starts declined by 50% (YoY 1H 2009, according to RISI) while Canadian Housing starts declined by 46% (YoY 1H 2009, according to CMHC⁴ ). As a consequence, many plants are stopping production or even closing down (two PB plants announced indefinite closures during 1Q 2009 and another plant closure has been announced for September 2009).

Nevertheless, we continue consolidating our market position. In recent quarters, we have increased market share of shipments from Canada to 35% and during this quarter our volumes sold increased by 12% (compared to 1Q 2009).

⁴ Canada Mortgage and Housing Corporation

In South Africa, the macroeconomic environment during 2Q 2009 has been stable and our product prices and volumes sold improved slightly.

On the cost side, as expected, chemicals prices decreased during 2Q 2009, helping our EBITDA margin.

As already announced, we closed our George plant during 1H 2009.

Turnover in the Rest of the World amounted to 150 million euros in 1H 2009, 14% below the same period in 2008. Recurrent EBITDA decreased to 22 million euros.

4- Financial Review of 1H 2009

Consolidated Turnover & Recurrent EBITDA Margin

Consolidated Turnover in 1H 2009 amounted to 671 million euros, a decrease of 30%, when compared to 1H 2008. Consolidated Recurrent EBITDA was 19 million euros, representing a margin on Turnover of 2.8% and an absolute decrease of 77% compared to 1H 2008.

								(euro millions)
	2008	2Q'08	1Q'09	2Q'09	2Q'09 / 2Q'08	2Q'09 / 1Q'09	1H'08	1H'09	%chg 09/08
Turnover	1,769	467	346	325	(31%)	(6%)	965	671	(30%)
Other Operational Income	114	17	11	14	(21%)	22%	77	25	(67%)
EBITDA	139	38	4	9	(75%)	151%	126	13	(90%)
Recurrent EBITDA	100	38	6	13	(67%)	111%	79	19	(77%)
Recurrent EBITDA Margin %	5.7%	8.1%	1.7%	3.9%			8.2%	2.8%
Depreciation and amortisation	(123)	(31)	(31)	(32)	(4%)	(3%)	(60)	(63)	(4%)
Provisions and Impairment Losses	(56)	(5)	(3)	(3)	28%	(11%)	(15)	(6)	58%
Operational Profit	(23)	8	(25)	(19)	(339%)	23%	58	(45)	(177%)
Net Financial Charges	(78)	(20)	(15)	(14)	29%	7%	(38)	(29)	24%
o.w. Net Interest Charges	(48)	(12)	(10)	(8)	32%	22%	(24)	(18)	24%
o.w. Net Financial Discounts	(17)	(4)	(3)	(3)	29%	3%	(9)	(6)	29%
Profit before taxes (EBT)	(101)	(12)	(40)	(33)	(188%)	17%	20	(74)	(476%)
Taxes	(3)	8	(0)	(1)	(111%)	(75%)	(7)	(1)	82%
o.w. Current Tax	(3)	1	(0)	(1)	(294%)	(186%)	(3)	(1)	53%
Net Profit/(Loss) attributable to Shareholders of Sonae Indústria	(108)	(7)	(40)	(34)	(412%)	16%	6	(74)

Consolidated Total EBITDA in 1H 2009 decreased by 90% to 13 million euros (compared to 1H 2008), including a negative exchange rate effect of 1.8 million euros. Non-recurrent items mainly relate to restructuring costs.

1H 2009 consolidated Net Profit/(Loss) Attributable to Sonae Indústria Shareholders amounted to a negative 74 million euros, down from a positive 6 million euros in 1H 2008.

		(euro millions)
	2008	1Q'09	1H'09
Non Current Assets	1,386	1,384	1,413
Tangible Assets	1,203	1,198	1,224
Goodwill	104	104	107
Deferred Tax	54	55	57
Other Non Current Assets	26	26	25
Current Assets	532	467	440
Inventories	193	173	159
Trade Debtors	200	219	211
Cash & Investments	66	24	27
Other Current Assets	74	52	43
Total Assets	1,918	1,851	1,853
Shareholders' Funds	397	361	339
Minority Interests	3	3	2
Shareholders' Funds + Minority Interests	400	363	342
Interest Bearing Debt	956	941	922
Short term	189	186	188
L-M term	767	756	734
Trade Creditors	166	149	148
Other Liabilities	396	397	440
Total Liabilities	1,518	1,488	1,511
Total Liabilities, Shareholders' Funds and Minority Interests	1,918	1,851	1,853

In 1H 2009, additions to Fixed Assets amounted to 17 million Euros mostly driven by essential investments in maintenance, Health & Safety and Environmental issues.

Tight management of our Working Capital resulted in an improvement of 21 million euros during this quarter, which enabled us to reduce our Net Debt by the same amount.

Our financial costs are lower in 1H 2009 when compared to the same period last year, benefiting from the lower interest rates.

We have already received proposals from relationship banks to refinance the 80 million euros bond issue maturing in October 2009.

As previously reported, our debt has no consolidated financial ratio covenants.

5- Looking Forward

We expect a slow recovery in the wood base panel industry over the coming quarters, as volumes appear to have now stabilized in most of the geographies where we operate.

Fixed costs should continue to decline in the coming months as a result of the restructuring measures we have implemented and we will continue to adapt our production to market demand.

Cash flow management will continue to be our top priority, by restricting our investments and minimizing our working capital.

We will continue to study and implement further restructuring measures to adapt our capacity to the market and to strengthen our balance sheet.

The Board of Directors Maia, 30th July 2009

_________________________ Belmiro de Azevedo

_________________________ Álvaro Cuervo

_________________________ Paulo Azevedo

_________________________ Per Knuts

Thomas Nystén

_________________________ Carlos Bianchi de Aguiar

_________________________

_________________________

Rui Correia

_________________________ Christophe Chambonnet

QUALIFIED SHAREHOLDINGS,

APENDICES TO THE ACTIVITY REPORT

AND

STATEMENT ACCORDING WITH ART 246 CMVM CODE

QUALIFIED SHAREHOLDINGS

Complying with Article 9 No.1 of the the CMVM Regulation no. 05/2008

Shareholder	No. of shares	% Share Capital	% Voting rights
Efanor Investimentos, SGPS, S.A.
Directly	44.780.000	31,9857%	31,9857%
By Pareuro, BV ( controlled by Efanor)	27.118.645	19,3705%	19,3705%
By SC, SGPS, SA ( indirectly controlled by Efanor)	9.521.815	6,8013%	6,8013%
By SC Finance, BV (ex-Sonae Financial Participations B.V) ( indirectly controlled by Efanor)	843.453	0,6025%	0,6025%
By Maria Margarida CarvalhaisTeixeira de Azevedo (Director of Efanor)	1.010	0,0007%	0,0007%
By Nuno Miguel Teixeira de Azevedo (Director of Efanor and held by descendent)	711	0,0005%	0,0005%
By Duarte Paulo Teixeira de Azevedo (Director of Efanor and held by descendent)	223	0,0002%	0,0002%
By Migracom, SGPS,SA (Company controlled by Efanor´s Director, Paulo Azevedo)	90.000	0,0643%	0,0643%
By Linhacom, SGPS,SA (Company controlled by Efanor´s Director, Cláudia Azevedo)	23.186	0,0166%	0,0166%
Total allocation	82.379.043	58,8422%	58,8422%

Corporate Governing Bodies Information

Complying with Article 9 No.1 of the the CMVM Regulation no. 05/2008

			Acquisitions		Sales	Balance at 30.06.2009
	date	amount	€ average value	amount	€ average value	amount
Belmiro Mendes de Azevedo Efanor Investimentos, SGPS, SA (1)
( 1 share is held by the spouse)						49.999.997
Sonae Indústria, SGPS, SA						1.010
( 1 share is held by the spouse)
Sonae Capital, SGPS, SA (2)						838.862
( 1.862 shares are held by the spouse )
Duarte Paulo Teixeira de Azevedo
Efanor Investimentos, SGPS, SA (1)						1
Sonae Capital, SGPS, SA (2)						411
(held by the menor descendent )
Migracom, SGPS, SA (3)						1.969.996
Sonae Indústria, SGPS, SA						223
(held by the menor descendent )
Carlos Bianchi de Aguiar
Sonae Indústria, SGPS, SA						720
Rui Manuel Gonçalves Correia
Sonae Indústria, SGPS, SA						12.500
Agostinho Conceição Guedes
Sonae Indústria, SGPS, SA						2.520
						Balance at
			Acquisitions		Sales	30.06.2009
	date	amount	€ average value	amount	€ average value	amount
(1) Efanor Investimentos, SGPS, SA
Sonae Indústria, SGPS, SA						44.780.000
Pareuro, BV (4)						2.000.000
Increase in share capital
Sonae Capital, SGPS, SA (2)						88.859.200
(2) Sonae Capital, SGPS, SA

SC, SGPS, SA (5) 391.046.000 SC Finance, BV (6) 500 (ex-Sonae Financial Participations B.V)

(3) Migracom, SGPS, SA

Sonae Indústria, SGPS, SA 90.000 Imparfim, SGPS, SA (7) 150.000 Sonae Capital, SGPS, SA 161.250

(4) Pareuro, BV Sonae Capital, SGPS, SA (2) 50.000.000

Sonae Indústria, SGPS, SA 27.118.645

(5) SC, SGPS, SA

Sonae Indústria, SGPS, SA 9.521.815

(6) SC Finance B.V

Sonae Indústria, SGPS, SA 843.453

28.05.2009	7.500	2,443
29.05.2009	30.000	2,409
01.06.2009	50.000	2,411
02.06.2009	55.000	2,446
03.06.2009	30.000	2,437
04.06.2009	22.000	2,410
05.06.2009	110.252	2,410
08.06.2009	40.000	2,315
09.06.2009	25.000	2,345
10.06.2009	17.500	2,396
11.06.2009	15.500	2,400
12.06.2009	200.000	2,394
15.06.2009	11.144	2,361
16.06.2009	5.000	2,360

LIST OF TRANSACTIONS MADE BY PERSONS DISCHARGING MANAGERAIL RESPONSABILITIES AND PEOPLE CLOSELY CONNECTED WITH THEM DURING THE 1st HALF OF 2009

			Acquisitons		Sales	Balance 30.06.2009
	Date	average value Amount		Amount	average value	Amount
SC Finance, B.V (1)
(ex- Sonae Financial Participations) Sonae Indústria, SGPS, SA						843.453
Sale	28-05-2009			7.500	2,44
	29-05-2009			30.000	2,41
	01-06-2009			50.000	2,44
	02-06-2009			55.000	2,446
	03-06-2009			30.000	2,437
	04-06-2009			22.000	2,41
	05-06-2009			110.252	2,41
	08-06-2009			40.000	2,315
	09-06-2009			25.000	2,345
	10-06-2009			17.500	2,40
	11-06-2009			15.500	2,4
	12-06-2009			200.000	2,394
	15-06-2009			11.144	2,361
	16-06-2009			5.000	2,36

Complying with Article 14, no. 7 of the CMVM Regulation no. 05/2008

(1) Entity closely connected with the director Belmiro de Azevedo, as he indirectly helds it

(Free translation from the original in Portuguese)

Statement issued under the terms and for the purpose of sub-paragraph c) of no. 1 of Article 246 of the Portuguese Securities Code

In terms of the order in sub-paragraph c), no. 1, Article 246 of the Portuguese Securities Code, the Board members of Sonae Indústria, SGPS, SA hereby declare, to the best of their knowledge, that:

• a) The half-yearly financial statements have been prepared according to the applicable accountancy standards, reflecting a true and fair view of the assets and liabilities, financial position and results of both the company and the companies included in its consolidation perimeter; and
• b) The interim Management Report includes a fair review of the important events that have occurred in the first six months of this year, and the impact on the financial statements, together with a description of the main risks and uncertainties for the remaining part of the year.

30th July 2009

The Board of Directors

_________________________ ________________________ Belmiro de Azevedo Álvaro Cuervo

_________________________ ________________________ Paulo Azevedo Per knuts

_________________________ ________________________

Thomas Nystén Carlos Bianchi de Aguiar

_________________________ ________________________ Rui Correia Christophe Chambonnet

Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2009 AND 31 DECEMBER 2008

(Amounts expressed in Euros)

ASSETS	30.06.2009	31.12.2008
NON CURRENT ASSETS:
Tangible assets	1 224 096 795	1 202 504 678
Goodwill	106 637 124	103 811 638
Intangible assets	11 501 274	12 490 658
Investment properties	8 044 647	8 114 976
Associated undertakings and non consolidated undertakings	2 986 761	3 075 688
Investment available for sale	400 002	389 763
Deferred tax asset	57 057 506	53 985 797
Other non current assets	2 395 357	1 751 010
Total non current assets	1 413 119 466	1 386 124 208
CURRENT ASSETS:
Inventories	158 919 113	192 882 429
Trade debtors	210 812 099	199 825 603
Other current debtors	13 051 733	15 418 674
State and other public entities	19 560 061	30 835 909
Other current assets	10 738 273	27 529 412
Cash and cash equivalents	26 531 039	65 750 257
Total current assets	439 612 318	532 242 284
TOTAL ASSETS	1 852 731 784	1 918 366 492
SHAREHOLDERS`FUNDS AND LIABILITIES
SHAREHOLDERS`FUNDS:
Share capital	700 000 000	700 000 000
Legal reserve	2 737 181	2 399 639
Other reserves and retained earnings	- 284 078 838	- 207 594 636
Accumulated other comprehensive income	- 79 200 372	- 97 704 689
Total	339 457 971	397 100 314
Non-controlling interests	2 437 130	3 072 691
TOTAL SHAREHOLDERS`FUNDS	341 895 101	400 173 005
LIABILITIES:
NON CURRENT LIABILITIES:
Long term bank loans - net of short-term portion	278 801 065	268 056 483
Non convertible debentures	302 616 842	302 147 961
Long term Finance Lease Creditors - net of short-term portion	46 333 899	47 949 761
Other loans	105 949 910	148 419 100
Pensions liabilities	25 471 065	25 244 259
Other non current liabilities	128 071 059	118 741 078
Deferred tax liabilities	75 381 072	69 902 362
Provisions	55 777 312	37 498 938
Total non current liabilities	1 018 402 224	1 017 959 942
CURRENT LIABILITIES:
Short term portion of long term bank loans	30 978 539	31 507 509
Short term bank loans	73 689 995	74 070 252
Short term portion of long term non convertible debentures	80 000 000	80 000 000
Short term portion of Finance Lease Creditors	3 277 435	3 535 578
Other loans	300 630	301 760
Trade creditors	148 299 967	165 920 462
Taxes and Other Contributions Payable	19 141 896	16 307 234
Other current liabilities	127 217 842	116 981 282
Provisions	9 528 155	11 609 467
Total current liabilities	492 434 459	500 233 545
TOTAL EQUITY AND LIABILITIES	1 852 731 784	1 918 366 492

The notes are an integral part of the consolidated financial statements

CONSOLIDATED INCOME STATEMENTS

FOR THE PERIODS ENDED AT 30 JUNE 2009 AND 2008

(Amounts expressed in Euros)

		2nd. Half 09		2nd. Half 08
	30.06.2009	(non audited)	30.06.2008	(non audited)
Operating revenues
Sales	668 179 765	323 307 159	960 655 421	465 091 326
Services rendered	2 586 488	1 234 115	4 178 638	2 229 996
Other operating revenues	25 109 327	13 799 537	77 023 853	17 378 290
Total operating revenues	695 875 580	338 340 811	1 041 857 912	484 699 612
Operating costs
Cost of sales	323 324 721	153 940 562	501 554 427	245 923 026
(Increase) / decrease in production	15 951 689	8 660 564	- 3 040 879	- 5 798 743
External supplies and services	191 741 481	90 042 386	254 626 657	122 271 863
Staff expenses	133 945 115	66 696 696	144 222 299	71 707 649
Depreciation and amortisation	62 970 074	31 909 997	60 447 571	30 793 335
Provisions and impairment losses	6 303 313	3 316 124	15 013 605	4 599 260
Other operating costs	6 345 764	3 179 143	11 291 580	7 074 144
Total operating costs	740 582 157	357 745 472	984 115 260	476 570 534
Operational profit / (loss)	- 44 706 577	- 19 404 661	57 742 652	8 129 078
Financial profits	42 533 644	22 099 518	46 064 314	17 573 785
Financial costs	71 480 074	36 061 861	84 219 579	37 298 506
Gains and losses in associated companies	- 88 928	- 113 933
Gains and losses in investments	98 700	98 700	20 975	20 975
Current profit / (loss)	- 73 643 235	- 33 382 237	19 608 362	- 11 574 668
Taxation	1 325 696	843 647	7 256 038	- 7 545 496
Consolidated net profit / (loss) afer taxation	- 74 968 931	- 34 225 884	12 352 324	- 4 029 172
Profit / (loss) after taxation from descontinued operations	-	-	-	-
Consolidated net profit / (loss) for the period	- 74 968 931	- 34 225 884	12 352 324	- 4 029 172
Attributable to:
Equity holders of Sonae Industria	- 74 028 838	- 33 768 482	6 439 558	- 6 594 590
Non-controlling interests	- 940 093	- 457 402	5 912 766	2 565 418
Profit/(Loss) per share
Excluding discontinued operations:
Basic	- 0.5288	- 0.2412	0.0460	- 0.0471
Diluted	- 0.5288	- 0.2412	0.0460	- 0.0471
From discontinued operations:
Basic	-	-	-	-
Diluted	-	-	-	-

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE PERIODS ENDED 30 JUNE 2009 AND 2008

(Amounts expressed in Euros)

		2n d. Ha lf 0 9		2n d. Ha lf 0 8
	30 .06 .20 09	(no ud ited ) n a	30 .06 .20 08	(no ud ited ) n a
Ne rof it / ( los s) for th eri od (a ) t p e p	( 74 96 8 9 31 )	( 34 22 5 8 84 )	12 35 2 3 24	( 4 0 29 17 2)
Ot he he ive in r c om pre ns co me
Ch in lat ion tra an ge cu rre ncy ns re se rve	20 02 2 3 02	14 03 2 2 88	( ) 15 27 8 5 60	11 30 0 5 01
Ch fa f c h f in ir v alu low he dg e d eri tive an ge e o as va s	( 5) 1 2 86 20	26 8 2 31	43 1 8 61	31 2 1 65
Inc rel ati of oth reh siv e i e t to ts om ax ng co mp on en er co mp en nco me
Ot he he ive in fo r th eri od of ( b) et tax r c om pre ns co me e p , n	18 73 6 0 97	14 30 0 5 19	( 14 84 6 6 99 )	11 61 2 6 66
d ( a) + ( b) To tal reh siv e i e f the rio co mp en nc om or pe	( ) 56 23 2 8 34	( ) 19 92 5 3 65	( 5) 2 4 94 37	7 5 83 49 4
To tal reh siv e i at trib uta ble to co mp en nco me :
Eq uity ho lde of So e I nd ria ust rs na	( ) 55 52 4 5 21	( ) 19 63 8 3 95	( 5) 9 3 77 68	1 8 99 96 2
No llin inte tro ts n-c on g res	( 70 8 3 13)	( 28 6 9 70 )	6 8 83 31 0	5 6 83 53 2
	( ) 56 23 2 8 34	( ) 19 92 5 3 65	( 5) 2 4 94 37	7 5 83 49 4

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS` FUNDS AT 30 JUNE 2009 AND 2008

(Amounts expressed in Euros)

Accumulated other comprehensive income

	Not es	Sha api tal re c	al res Leg erv e	Oth er R ese rve s and ula ted ac cum ear nin gs	Cur cy tran ren slat ion	Cas h flo w hed ge der ivat ives	Sub tota l	rs` Tot al s har eho lde fun ibu ds attr tab le t o the uity ho lde f eq rs o Son Ind úst ria ae	llin Non ntro g inte co ts res	Tot al s rs' fun har eho lde ds
Bal 1 J 20 08 s at anc e a anu ary Dis trib uted div iden ds		700 00 0 0 00	1 3 40 138	- 60 91 6 3 69 - 39 20 0 0 00	-45 42 9 8 54	95 24 4	-45 33 4 6 10	595 08 9 1 59 - 39 20 0 0 00	33 742 41 7	62 8 8 31 576 - 39 20 0 0 00
/ (l App riat ion of p ious r's n et p rofit ) rop rev yea oss Tot al c hen sive inc om pre om e Oth ers			1 05 9 5 01	- 1 059 50 1 6 4 39 558 - 3 24 041	-16 24 9 1 04	43 1 86 1	-15 81 7 2 43	- 9 377 68 5 - 3 24 041	6 8 83 310 12 2 0 48	- 2 494 37 5 - 2 01 993
Bal s at 30 Ju 200 8 anc e a ne		700 00 0 0 00	2 3 99 639	-95 06 0 3 53	-61 67 8 9 58	52 7 1 05	-61 15 1 85 3	546 18 7 4 33	40 747 77 5	58 6 9 35 208

Accumulated other comprehensive income

	Not es	Sha api tal re c	al res Leg erv e	Oth er R ese rve s and ula ted ac cum ear nin gs	Cur cy tran ren slat ion	Cas h flo w hed ge der ivat ives	Sub l tota	Tot al s har eho lde rs` fun ds ibu tab le t attr o the uity ho lde f eq rs o Son Ind úst ria ae	Non llin ntro g inte co ts res	Tot al s rs' fun har eho lde ds
Bal s at 1 J 20 09 anc e a anu ary Acq uisi tion / (D ispo sal) of sub sidi arie s		700 00 0 0 00	2 3 99 639	- 20 7 5 94 636 - 31 1 4 18	-96 63 9 6 19	-1 0 65 070	-97 70 4 6 89	397 10 0 3 14 - 3 11 4 18	3 0 72 691	40 0 1 73 005 - 3 11 4 18
App riat ion of p ious r's n et p rofit / (l ) rop rev yea oss			337 54 2	- 33 7 5 42
Tot al c hen sive inc om pre om e Oth ers				-74 02 8 8 38 -1 8 06 404	19 790 52 2	-1 2 86 205	18 504 31 7	- 55 52 4 5 21 - 1 806 40 4	- 7 08 313 72 75 2	- 56 23 2 8 34 - 1 733 65 2
Bal 30 Ju 200 9 s at anc e a ne		700 00 0 0 00	2 7 37 181	-28 4 0 78 838	-76 84 9 0 97	-2 3 51 275	-79 20 0 3 72	339 45 7 9 71	2 4 37 130	341 89 5 1 01

The notes are an integral part of the consolidated financial statements

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED AT 30 JUNE 2009 AND 2008

(Amounts expressed in Euros)

OPERATING ACTIVITIES	Notes	30.06.2009	30.06.2008	Restatement 30.06.2008
Net cash flow from operating activities (1)		41 591 318	28 556 859	28 556 859
INVESTMENT ACTIVITIES
Cash receipts arising from:
Investments		497 169	6 663 392	6 663 392
Tangible and intangible assets		1 193 584	10 588 486	10 588 486
Loans granted			10 347
Investment subventions			2 929 023	2 929 023
Interest and similar charges			2 755 018
Others		98 700	20 974	20 974
		1 789 453	22 967 240	20 201 875
Cash Payments arising from:
Investments		10 239	67 295	67 295
Tangible and intangible assets		23 552 113	74 583 377	74 583 377
Loans granted			300
		23 562 352	74 650 972	74 650 672
Net cash used in investment activities (2)		- 21 772 899	- 51 683 732	- 54 448 797
FINANCING ACTIVITIES
Cash receipts arising from:
Interest and similar gains		897 700		2 755 018
Loans granted				10 347
Loans obtained		1 399 674 680	323 301 245	1 580 911 729
Others		5 591 572	54 702 070	54 702 070
		1 406 163 952	378 003 315	1 638 379 164
Cash Payments arising from:
Loans granted		5 881		300
Loans obtained		1 430 572 244	273 883 484	1 531 494 268
Interest and similar charges		23 842 015	28 311 816	28 311 816
Dividends			39 101 644	39 101 644
Finance leases - repayment of principal		1 581 335	1 598 811	1 598 811
		1 456 001 475	342 895 755	1 600 506 539
Net cash used in financing activities (3)		- 49 837 523	35 107 560	37 872 625
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		- 30 019 104	11 980 687	11 980 687
Effect of foreign exchange rate		- 1 522 181	- 202 259	- 202 259
Cash and cash equivalents at the beginning of the period	7	17 388 776	49 154 756	49 154 756
Cash and cash equivalents at the end of the period	7	- 11 108 147	61 337 702	61 337 702

The notes are an integral part of the consolidated financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2009 (Amounts expressed in euros)

1. INTRODUCTION

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

The shares of the company are listed on Euronext Lisbon.

2. ACCOUNTING POLICIES

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

2.1. Basis of Preparation

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

2.2. Translation of financial statements of foreign companies

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

	31.03.2009		31.12.2008			31.03.2008
	Closing	Average	Closing	Average		Closing	Average
	rate	rate	rate	rate		rate	rate
Great Britain Pound	0.8521	0.8932	0.9525	0.7943		0.7922	0.7747
Brazilian Real	2.7469	2.9163	3.2436	2.6555		2.5112	2.5932
South African Rand	10.8849	12.2041	13.0668	11.9933		12.3426	11.6727
Canadian Dollar	1.6275	1.6046	1.6998	1.5574		1.5942	1.5384
American Dollar	1.4134	1.3311	1.3917	1.4631		1.5764	1.5289
Swiss Franc	1.5265	1.5055	1.4850	1.5862		1.6056	1.6060
Polish Zloty	4.4520	4.4693	4.1535	3.5002		3.3513	3.4882

Source: Bloomberg

3. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

During the period the company Euro Decorative Boards, Ltd., formerly consolidated by the fully consolidation method, was liquidated and the company Beeskow Holzwerkstoffe GmbH was incorporated through partial demerger of GHP GmbH.

These changes in the consolidation perimeter did not affect the comparability of these consolidated financial statements.

4. TANGIBLE AND INTANGIBLE ASSETS

During the periods ended 30 June 2009 and 31 December 2008, movements in tangible and intangible assets, accumulated depreciation and impairment losses were as follows:

Tangible Assets
	30.06.2009	31.12.2008
Gross cost:
Opening balance	2 624 864 682	2 683 286 688
Changes in consolidation perimeter		- 7 803 613
Capital expenditure	15 700 020	109 114 008
Disposals	18 853 614	18 059 709
Others	5 128 260	198 644
Exchange rate effect	69 908 370	- 141 871 332
Closing balance	2 696 747 718	2 624 864 686
Accumulated depreciation and impairment losses
Opening balance	1 422 360 005	1 340 465 340
Changes in consolidation perimeter		- 5 170 822
Charge for the period	61 679 965	150 085 946
Disposals	18 356 547	11 345 317
Exchange rate effect	26 510 953	- 51 578 302
Others	- 19 543 453	- 96 837
Closing balance	1 472 650 923	1 422 360 008
Carrying amount	1 224 096 795	1 202 504 678

During the periods ended 30 June 2009 and 31 December 2008 no interest paid or any other financial charges were capitalised, in accordance with conditions defined in note 2.9 to consolidated financial statements of year 2008.

Intangible Assets
	30.06.2009	31.12.2008
Gross cost:
Opening balance	22 257 745	18 499 178
Capital expenditure	276 963	5 597 990
Disposals	67 175	1 068 180
Exchange rate effect	389 838	- 562 449
Others	452 485	- 208 794
Closing balance	23 309 856	22 257 745
Accumulated amortisation and impairment losses
Opening balance	9 767 088	7 663 030
Charge for the period	1 968 235	3 147 724
Disposals	67 175	1 068 186
Exchange rate effect	140 434	- 72 543
Others		97 062
Closing balance	11 808 582	9 767 087
Carrying amount	11 501 274	12 490 658

Charges to impairment losses are detailed in note 12.

5. DEFERRED TAXES

At 30 June 2009 and 31 December 2008 deferred tax asset and liability were detailed according to underlying temporary differences as follows:

		Deferred tax assets		Deferred tax liabilities
	30.06.2009	31.12.2008	30.06.2009	31.12.2008
Harmonisation adjusments			64 148 812	59 897 966
Provisions not allowed for tax purposes	4 345 945	3 377 394	24 402
Impairment of Assets	1 918 164	2 588 089
Derecognized intangible assets		600
Derecognized tangible assets	132 056	186 174
Derecognized deferred costs	128 683	177 647
Valuation of hedging derivatives	130 633	108 820
Revaluation of tangible assets			2 918 798	3 044 798
Tax losses carried forward	50 402 025	47 547 072
Others			8 289 060	6 959 598
	57 057 506	53 985 797	75 381 072	69 902 362

Changes to deferred tax asset and liability include approximately 3 700 000 euros and 6 350 000 euros of exchange rate effect, respectively.

6. OTHER CURRENT ASSETS

At 30 June 2009 and 31 December 2008, details of Other current assets on the Consolidated Balance Sheet were as follows:

	30.06.2009		31.12.2008
	Gross Value	Impairment	Net Value	Gross Value	Impairment	Net Value
Derivatives instruments	6 372 338		6 372 338	16 521 457		16 521 457
Financial Instruments	6 372 338		6 372 338	16 521 457		16 521 457
Accrued revenue	1 341 436		1 341 436	5 441 863		5 441 863
Deferred Costs	3 012 274		3 012 274	5 535 277		5 535 277
Others	12 225		12 225	30 815		30 815
Assets out of scope of IFRS 7	4 365 935		4 365 935	11 007 955		11 007 955
Total	10 738 273		10 738 273	27 529 412		27 529 412

7. CASH AND CASH EQUIVALENTS

At 30 June 2009 and 31 December 2008, the detail of Cash and Cash Equivalents was as follows:

	30.06.2009	31.12.2008
Cash at hand	104 974	98 186
Bank deposits	5 847 704	8 040 212
Treasury applications	20 578 361	57 611 859
Cash and cash equivalents on the balance sheet	26 531 039	65 750 257
Bank overdrafts	37 639 186	48 361 481
Cash and cash equivalents on the statement of cash flows	- 11 108 147	17 388 776

The consolidated statement of cash flows for the period ended 30 June 2008 was restated as follows:

• i) Cash receipts and payments arising from loans granted were transferred from investment activities to financing activities;
• ii) Cash receipts arising from interest and similar gains were transferred from investment activities to financing activities;
• iii) Cash receipts and payments arising from loans obtained were recalculated so as to include all cash inflows and outflows occurred.

The restatement referred to in points i) and ii) occurred because the company's management considers that the new classification better reflects the structure of the organization's financing.

8. LOANS

As at 30 June 2009 and 31 December 2008 Sonae Indústria had the following outstanding loans:

	30.06.2009
	Amortised cost		Nominal value
	Current	Non current	Current	Non current
Bank loans Debentures Obligations under finance leases Other loans Gross debt	104 668 534 80 000 000 3 277 435 300 630 188 246 599	278 801 065 302 616 842 46 333 899 105 949 910 733 701 716	104 668 534 80 000 000 3 277 435 300 630 188 246 599	278 801 065 305 000 000 46 333 899 105 949 910 736 084 874
Investment Cash and cash equivalent in balance sheet Net debt	26 531 039 161 715 560	733 701 716	26 531 039 161 715 560	736 084 874
Total net debt	895 417 276		897 800 434

	31.12.2008
	Amortised cost		Nominal value		Fair value
	Current	Non current	Current	Non current	adjustment
Bank loans	105 577 761	268 056 483	105 577 761	268 056 483	970 201
Debentures	80 000 000	302 147 961	80 000 000	305 000 000
Obligations under finance leases	3 535 578	47 949 761	3 535 578	47 949 761	-1 242 400
Other loans	301 760	148 419 100	301 760	148 419 100
Gross debt	189 415 099	766 573 305	189 415 099	769 425 344	- 272 199
Investment
Cash and cash equivalent in balance sheet	65 750 257		65 750 257
Net debt	123 664 842	766 573 305	123 664 842	769 425 344	- 272 199
Total net debt	890 238 147		893 090 186

The main changes occurred in bank loans were as follows:

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

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

c) In the second quarter of 2009 Tafisa Brasil contracted a loan with a local bank for an amount of BRL 28 000 000. This loan pay interest at market rate and will be redeemed in 2009 and 2010;

d) On 15 June 2009 the last instalment of the loan contracted by Sonae UK with European Investment Bank, with an original amount of GBP 35 000 000, was paid.

9. FINANCIAL DERIVATIVES

At 30 June 2009 and 31 December 2008, the fair value of derivative instruments are stated as follows:

	Other current assets (note 6)		Other current liabilities		Other non current liabilities
	30.06.09	31.12.08	30.06.09	31.12.08	30.06.09	31.12.08
Derivatives at fair value through profit or loss	6 372 338	16 305 348	16 118 743	6 244 352		9 230
Derivatives at fair value through reserves		216 109	2 690 298	1 168 770
	6 372 338	16 521 457	18 809 041	7 413 122		9 230

10. OTHER NON CURRENT LIABILITIES

At 30 June 2009 and 31 December 2008, details of Other non current liabilities were as follows:

	30.06.2009	31.12.2008
Derivative instruments Goup companies	72 604	9 230 72 604
Other creditors	434 401	434 401
Financial instruments	507 005	516 235
State and other public entities	56 100 189	44 122 456
Other creditors	71 463 865	74 102 387
Liabilities out of scope of IFRS 7	127 564 054	118 224 843
Total	128 071 059	118 741 078

11. OTHER CURRENT LIABILITIES

At 30 June 2009 and 31 December 2008, Other current liabilities were composed of:
-----------------------------------------------------------------------------------	--	--	--	--

	30.06.2009	31.12.2008
Group companies	34 946	34 910
Derivatives	18 809 041	7 413 122
Trade debtors advances	498 901	643 804
Fixed assets suppliers	2 975 827	8 776 582
Other creditors	5 093 188	2 693 380
Financial instruments	27 411 903	19 561 798
Other creditors	7 485 361	7 842 207
Accrued expenses:
Insurances	850 294	55 226
Personnel costs	26 733 412	23 753 319
Accrued financial expenses	4 961 256	9 137 782
Rappel discounts (annual quantity discounts)	22 223 501	28 919 892
External supplies and services	10 513 361	11 939 042
Other accrued expenses	20 550 417	9 815 327
Deferred income:
Investment subventions	5 955 214	5 891 717
Other deferred income	533 122	64 973
Liabilities out of scope of IFRS 7	99 805 938	97 419 485
Total	127 217 841	116 981 283

12. PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES

Movements occurred in provisions and accumulated impairment losses during the period ended 30 June 2009 were as follows:

				30.06.2009
	Opening	Exchange	Changes to			Other	Closing
Description	balance	rate effect	perimeter	Increase	Utilizations	changes	balance
Accumulated impairment losses on tangible assets (Note 4) Accumulated impairment losses on intangible assets (Note 4)	57 587 280 19 242	409 725		748 452	3 406 773	- 17 047 858 - 19 242	38 290 826
Accumulated impairment losses on other non-current assets	10 931 182						10 931 182
Accumulated impairment losses on trade debtors Accumulated impairment losses on other debtors	16 742 196 19 629	358 736		4 296 400	2 326 672	- 1 933 729	17 136 931 19 629
Provisions	49 108 405	3 220 302		1 258 461	3 731 302	15 449 601	65 305 467
Sub-total	134 407 934	3 988 763		6 303 313	9 464 747	- 3 551 228	131 684 035
Accumulated impairment losses on investments	37 005 998						37 005 998
Accumulated impairment losses on inventories	17 098 955	416 105		5 387 155	5 012 389	- 962 562	16 927 264
Total	188 512 887	4 404 868		11 690 468	14 477 136	- 4 513 790	185 617 297

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

	30.06.2009
	Losses	Gains
Cost of sales	2 851 027	2 621 779
Other operating revenues		9 464 747
(Increase) / decrease in production	2 536 128	2 390 610
Provisions and impairment losses	6 303 313
Total	11 690 468	14 477 136

At 30 June 2009 Sonae Indústria tested for impairment the cash generating units currently under restructuring in France and South Africa. These tests included the restructuring decisions that were taken in 2009, therefore changing the assumptions used on the tests performed by the end of 2008. Consequently, the impairment losses recognized in 2008 were partly reversed. The reversion is stated on column Other changes.

In addition, as the provisions of IAS 37 were fulfilled, a restructuring provision was created and stated on column Other changes.

13. OTHER OPERATING REVENUES

Details of Other operating revenues on the Consolidated Income Statement for the periods ended 30 June 2009 and 2008 are as follows:

	30.06.2009	30.06.2008
Gains on disposals of non current investments	20 675	4 192 056
Gains on disposals of tangible and intangible assets	898 516	46 119 530
Supplementary Revenue	5 094 325	3 851 940
Investment subventions	3 433 365	3 380 765
Tax received	3 406 991	2 496 342
Reversion of impairment losses	5 733 447	567 188
Gains on provisions	3 731 300	5 280 471
Others	2 790 708	11 135 561
	25 109 327	77 023 853

As regards the period ended 30 June 2008, the captions Gains on disposal of tangible and intangible assets and Others include 41 309 356 euros and 2 995 938 euros, respectively, related to the accident occurred on line II of our plant in Lac Megantic, Canada.

14. OTHER OPERATING COSTS

Details of Other operating costs on the Consolidated Income Statement for the periods ended 30 June 2009 and 2008 are as follows:

	30.06.2009	30.06.2008
Taxes	4 062 458	5 304 132
Losses on disposal of non current investments		3 369 561
Losses on disposal of tangible and intangible assets	164 714	208 107
Others	2 118 592	2 409 780
	6 345 764	11 291 580

15. FINANCIAL RESULTS

	30.06.2009	30.06.2008
Financial expenses:
Interest expenses
related to bank loans and overdrafts	3 725 544	4 867 523
related to non convertible debentures	5 311 525	13 389 993
related to finance leases	2 531 110	2 652 538
related to hedged loans (hedge derivatives)	3 279 644	1 886 403
others	3 788 502	4 277 731
Losses in currency translation	18 636 324	27 074 188
related to customers	795 126	656 752
related to suppliers	1 143 785	1 324 682
related to loans	8 203 215	24 829 001
others	205 653	479 443
	10 347 779	27 289 878
Cash discounts granted	7 373 879	10 632 473
Adjustment to fair value of financial instruments at fair value through profit or loss	29 932 951	15 225 817
Losses on valuation of hedging derivative instruments	304 613
Fair value of inefficient component of hedge derivatives
Other finance losses	4 884 528	3 997 224
	71 480 074	84 219 579
	30.06.2009	30.06.2008
Financial revenues:
Interest income
related to bank loans	27 822	155 824
related to loans to related parties	173 302	289 518
Others	328 577	2 699 781
	529 701	3 145 123
Gains in currency translation
related to customers	568 539	801 529
related to suppliers	727 874	1 264 163
related to loans others	21 718 617 792 123	8 405 721 372 458
	23 807 153	10 843 871
Cash discounts obtained	985 164	1 651 775
Adjustment to fair value of financial instruments at fair value through profit or loss	16 680 777	30 360 267
Gains in valuation of hedging derivative instruments	356 004
Fair value of inefficient component of hedge derivatives
Other finance gains	174 845	63 277
	42 533 644	46 064 314
Finance profit / (loss)	- 28 946 430	- 38 155 265

Financial results for the periods ended 30 June 2009 and 2008 were as follows:

16. TAXES

Corporate income tax accounted for in the periods ended 30 June 2009 and 2008 is detailed as follows:

	30.06.2009	30.06.2008
Current tax	1 490 429	3 184 071
Deferred tax	- 164 733 1 325 696	4 071 967 7 256 038

17. SEGMENT INFORMATION

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

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

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

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

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

Non reportable segments are included under Other segments.

	Turnover				Operating
		External		Intragroup		result
Segments	30.06.2009	30.06.2008	30.06.2009	30.06.2008	30.06.2009	30.06.2008
Iberian Peninsula	154 805 857	230 198 866	3 519 950	6 163 114	- 1 273 644	17 417 310
France	63 788 150	107 345 739	21 361 226	49 712 778	- 47 961 767	- 7 251 306
Germany	186 101 921	272 722 608	54 285 710	79 087 404	- 22 891 913	- 9 919 090
United Kingdom	32 220 211	51 209 043			- 4 765 890	913 527
Canada	56 799 467	52 961 229			- 1 449 566	38 562 329
Brazil	58 566 606	81 274 240			7 053 398	18 979 270
South Africa	34 631 493	40 982 800			267 108	3 631 783
Other segments	75 001 566	115 139 558	30 793 032	51 731 355	- 4 906 820	- 27 483
Total segments	661 915 271	951 834 083	109 959 918	186 694 651	- 75 929 094	62 306 340
Adjustments Non recognized impairment losses						- 2 000 000
Companies excluded from management consolidation perimeter					902 162	957 089
Reversion of impairment losses					27 376 043
Adjustment to depreciation					1 933 905	628 193
Gains on sale of financial undertakings						- 3 858 287
Others					1 010 407	- 290 683
Total segments after adjustments					- 44 706 577	57 742 652
Consolidated income statement					- 44 706 577	57 742 652

18. Contingencies

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

19. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

These consolidated financial statements were approved by the Board of Directors and authorised for issuance on 30 July 2009.

Statutory Audit Board's Report

PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. o′Porto Bessa Leite Complex Rua António Bessa Leite, 1430 - 5º 4150-074 Porto Portugal Tel +351 225 433 000 Fax +351 225 433 499

Limited Review Report for Stock Exchange Regulatory Purposes in respect of the Consolidated Financial Information

(Free translation from the original version in Portuguese)

Introduction

1 We hereby present our Limited Review Report on the consolidated interim information for the period of six months ended 30 June 2009, of Sonae Indústria, SGPS, SA., included in: the Directors' Report, the consolidated statement of financial position (which shows a total of Euros 1,852,731,784, and a total consolidated equity of Euros 341,895,101, including total minority interests of Euros 2,437,130, and other negative components of equity of Euros 79,200,372), the consolidated income statement by nature, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flow statements for the period then ended, and the corresponding notes to the accounts.

2 The amounts in the consolidated financial statements, as well as the financial information, were obtained from the accounting records.

Responsibilities

3 It is the responsibility of the Company's Board of Directors (a) to prepare the Directors' Report and consolidated financial statements that present fairly, in all material respects, the financial position of the company and its subsidiaries, the consolidated result of their operations, the consolidated comprehensive income, the consolidated changes in equity and their consolidated cash flows; (b) to prepare historical financial information in accordance with International Accounting Standard 34 – Interim Financial Reporting that is complete, true, timeliness, clear, objective and licit, as required by the Portuguese Securities Market Code; (c) to adopt adequate accounting policies and criteria; (d) to maintain appropriate systems of internal control; and (e) to disclose any relevant facts that have influenced the activity, the financial position or results of the company and its subsidiaries.

4 Our responsibility is to verify the financial information included in the above mentioned documents, namely if, it is complete, true, timeliness, clear, objective and licit, as required by the Portuguese Securities Market Code, and to issue a professional and independent report based on our work.

Sonae Indústria, SGPS, SA.

Scope

5 Our work was performed, with the objective of obtaining moderate assurance about whether the financial information referred to above is free of material misstatement. Our work, which was based on the Technical Rules and Directives of the Portuguese Institute of Statutory Auditors, was planned in accordance with that objective, and consisted mainly of inquiries and analytical procedures to review: (i) the reliability of the assertions included in the financial information; (ii) the adequacy of the accounting policies adopted considering the circumstances and their consistent application; (iii) the applicability, or otherwise, of the going concern concept; (iv) the presentation of the financial information; and (v) if, the financial information is complete, true, timeliness, clear, objective and licit; and (b) substantive testing to the significant unusual transactions.

6 Our work also covered the verification of the consistency of the information included in the Director's report with the remaining documents referred to above.

7 We believe that our work provides a reasonable basis for issuing this report on the half year financial information.

Conclusion

8 Based on our work, which was performed with the objective of obtaining moderate assurance, nothing has come to our attention that causes us to believe that the accompanying consolidated and financial statements for the period of six months ended 30 June 2009 are not free of material misstatements that affects its conformity with the International Accounting Standard 34 – Interim Financial Reporting and that the information included is not complete, true, timeliness, clear, objective and licit.

Porto, 30 July 2009

PricewaterhouseCoopers & Associados, S.R.O.C., Lda. represented by:

António Joaquim Brochado Correia, R.O.C.