SONAE IMOBILIÁRIA. Sonae Imobiliária has submitted all its real estate fixed assets to an independent valuation as of June 30th, 2003.

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1 SONAE IMOBILIÁRIA Consolidated Accounts 1 st Semester of 2003 INTRODUCTION Sonae Imobiliária s Net Consolidated Profits (after Minority Interests) reached 64,610 million during this first semester, against 91,965 million in the same period of last year, a 29,7% decrease. Sonae Imobiliária has submitted all its real estate fixed assets to an independent valuation as of June 30th, Following IAS rules, the Company has calculated the value increase of its real estate operating properties vis-à-vis its 2002 year-end open market value and booked this increase as income of the exercise. These valuation increases are deducted from deferred taxes. All of the Company s real estate properties were independently valued Open Market Value, or OMV -, as of June 30th 2003 at million ( million as of 31/12/2002), of which million ( million as of 31/12/2002, a 2,1% decrease) were attributable to Sonae Imobiliária. On a like-for-like comparison, the attributable value increased by 4,9%. The minor decrease in the OMV attributable to the Company s properties (-2,1%) was mainly due to 50% Vasco da Gama Shopping Centre (Lisbon, Portugal) sale to ING. As of June 30 th 2003, the NAV ( Net Asset Value ) of the attributable property portfolio stood at million ( million as of 31/12/2002). MAIN EVENTS DURING THE FIRST SEMESTER OF 2003 The main events during the first semester of 2003 were the following: January: The Company was distinguished by PROCOS - Expert Federation in Urbanism for the Development of Specialised Retail - as the real estate developer and investor of the year in Europe, with the attribution of the PROCOS 2003 Europe Prize; The 25% acquisition of Plaza Mayor Centro de Ócio, S.A. from Castle City Group took place. Sonae Imobiliária now owns 100% of Plaza Mayor (Málaga, Spain); The inauguration of the shopping and leisure centre Estação Viana (Viana do Castelo, Portugal) was announced to take place in November 2003; Pág. 1 / 22

2 March: Sonae Imobiliária sold 50% of Ascendente SGPS, S.A., company that holds Vasco da Gama Shopping Centre, to ING Retail Property Fund Ibéria. The sale had the 204 million OMV ( Open Market Value ) of the Shopping Centre as basis, recently determined by independent valuation. This sale has a 25,6 million impact on the period results; The International Council of Shopping Centres (ICSC) awarded Plaza Mayor, the first shopping and leisure centre developed by Sonae Imobiliária in Spain, (Málaga, Spain) with the first Prize in the Specialized Shopping Centre category; The inauguration of the shopping and leisure centre Luz del Tajo (Toledo, Spain) was announced to take place in the 2004 fall, and the construction started immediately; Six Castello Lopes cinemas were inaugurated at a building side-by-side GuimarãesShopping (Guimarães, Portugal), both buildings were connected with a covert pedestrian passage. The respective ticket offices are inside the Shopping Centre. The Centre was refurbished; a more modern and friendly environment was created. April: Through a joint venture with Espansione Commerciale, we started the management of Orio Center, Bergamo, one of the largest Shopping Centers in Italy. The Centre has 56,901 m2 of GLA and 133 contracts with tenants; CCC Consultoria de Centros Comerciales, S.A., in Madrid our Spanish management and letting business, took over the management of Parque Principado (Oviedo, Spain); The Cultural Conextion started at Parque D. Pedro, Campinas, São Paulo, Brazil, a project with a cultural approach involving fashion, culture and music; will last until October with bi-weekly presentations. May: Sale for 17,4 million, of 50% position in SPEL Sociedade de Parques de Estacionamento, S.A. and respective shareholder loans to SABA Aparcamientos, S.A., the spanish company that now has 100% of Spel capital; The inauguration of Coimbra Retail Park (Coimbra, Portugal) was announced to take place in November June: The Penha Shopping (São Paulo, Brazil) expansion started, the investment is totally supported by Sonae Imobiliária and the conclusion is expected to be in August 2004; Pág. 2 / 22

3 Thessalonica (Greece) local council issued the building permit to develop Mediterranean Cosmos shopping and leisure centre; The inauguration of the shopping and leisure centre Dos Mares (Murcia, Spain) was announced to take place in April 2004; Environmental Week in Parque D. Pedro (Campinas, São Paulo, Brazil), with expositions, guide visits and discussions with the local schools participation. Pág. 3 / 22

4 SHOPPING AND LEISURE CENTRES DEVELOPMENT Portugal During the first semester of 2003, the construction and marketing of the two Shopping Centres under development, Parque Atlântico (Ponta Delgada, Azores) and Estação Viana (Viana do Castelo), both being developed in joint ventures (50/50) with local partners, progressed as planned. Parque Atlântico is scheduled to open next October 15th and Estação Viana next November 19th, both representing a 85 million total investment. The marketing campaigns for these centres have been highly successful and the centres should open fully let. Coimbra Retail Park and Setúbal Retail Park are the company s second and third investments of this type in Portugal, in joint venture (50/50) with Miller Developments the Company s preferred partner for the retail park business in Portugal and Spain. Building began at Coimbra Retail Park (Coimbra) in late 2002 and the project is scheduled to open in November this year. This m 2 GLA project, representing a 15 million investment is already 60% let. Setúbal Retail Park (Setúbal) has obtained the architecture design approval and is still waiting for the issuing of its construction license, which the Company believes will occur soon. The investment is estimated to amount to 22,1 million. Spain The construction and marketing of the Avenida M40 shopping and leisure centre, (Madrid) are proceeding at a brisk pace. This joint venture between Sonae Imobiliária and the Eroski Group (60/40) is scheduled to open next spring. This project represents an investment of about 112 million and contracts have already been signed for 60% of its GLA. In March, also in partnership with the Eroski Group (65/35), building began at the Plaza Éboli shopping and leisure centre in Pinto (Madrid region). This project represents an investment of about 55 million. It will have m 2 of GLA with 77 shops, including an Eroski hypermarket, 13 restaurants, an 8-screen cinema and parking for about 1,000 cars. It is scheduled to open in 2004 fall. In June, the opening of the shopping and leisure centre Dos Mares in S. Javier (Murcia area) was announced to take place in 2004 spring. This joint development of Grupo Eroski and Sonae Imobiliária (35/65) represents an investment of about 35 million. Construction is progressing as expected and 50% of its GLA is now contracted. The company continue developing Luz del Tajo (Toledo). This is another joint investment with the Eroski Group (65/35). Construction started in April and the opening is scheduled to 2004 fall. The estimated investment in the centre is 77 million and 40% of its GLA is already committed. Pág. 4 / 22

5 The development of Zubiarte shopping and leisure centre (Bilbao) a joint (50/50) 83 million investment and m 2 GLA with ING Developments, is progressing as planned. The centre is already under construction and it is scheduled to open in the third quarter of In Malaga the company continued to focus on obtaining the licences required for de development of Plaza Mayor Shopping, a joint (75/25) 41 million investment and m 2 GLA with Castle City. Germany and Austria Sonae Imobiliária through SonaeWest Shopping, AG, its subsidiary for the German and Austrian markets, with headquarters in Dusseldorf has continued to develop the shopping and leisure centre 3DO (Dortmund). The project has a GLA of around 55,000 m 2 and an estimated development cost of 250 million. Alexanderplatz shopping and leisure centre, in the city of Berlin, has obtained the architecture concept approval by the Senate of Berlin, and the building permit is expected to the end of this year, in order to allow the start of construction in the first semester of This new development will have m 2 of GLA and represents an investment of around 265,5 million. In Austria, the Company continued its efforts, to obtain the necessary licenses to development and promote the Vienna Mitte shopping and leisure centre (Vienna). This new centre will have around m 2 of GLA and an estimated cost of 170 million. Greece In Greece, Sonae Imobiliária through Sonae Charagionis, SA the Company s subsidiary for the Greek market, with headquarters in Athens continued its efforts, during this first semester of 2003, to obtain the necessary licenses to the development of the Aegean Park, a shopping and leisure centre in the Greater Athens area. In the last week of June, the shopping and leisure centre Mediterranean Cosmos (Thessalonica) was awarded with the construction license. This centre, held 39,9% by Sonae Charagionis, and 60,1% by LAMDA Developments will have m 2 of GLA and represents a total investment of around 104 million. The construction already started and the opening is scheduled during the first quarter Italy In Italy, through Sonae Imobiliária Italy, srl, efforts are being made to conclude the licensing process so that work can begin in 2004 on the Brescia Centre, (Brescia). This m 2 shopping and leisure centre has a development cost of about 109 million. Pág. 5 / 22

6 In the Pavia Centre, (Pavia) the company continue working on the issuance of the necessary licences to proceed with this investment. This new centre represents an investment of 129 million and it will have m 2 of GLA. Sonae Imobiliária kept on studying several possible shopping and leisure centre developments in the markets where operates Portugal, Spain, France, German, Austrian, Italy and Greece - with potential local partners. Brazil The construction and marketing of Boavista Shopping, (São Paulo, parish of Santo Amaro) continues. A total investment of around 18 million and inauguration planned for 2004 brazilian fall. The Shopping Penha (east side of São Paulo) expansion started in June. With a total investment of around 11 million fully supported by Sonae Imobiliária, this expansion will add more m 2 of GLA. After the expected opening in August of next year, Sonae Imobiliária will own the majority of the Centre Capital. With prudence and caution, Sonae Imobiliária will keep on analysing other investment opportunities in the Brazilian market. Pág. 6 / 22

7 INVESTMENT During the first semester of 2003, the global performance of the Company s Shopping Centre portfolio was reasonable taking into account the economic slowdown. Portugal Sonae Imobiliária is the owner (or co-owner) of 12 shopping and leisure centres, 1 retail park and 2 commercial galleries in Portugal, with a total of m 2 of GLA where tenants operate. During the first semester of 2003, the total rental income increased by 5,6% versus the same period of The sales where stable despite a 2,8% decrease in visits. Spain Sonae Imobiliária is the owner (or co-owner) of 6 shopping and leisure centres, with a total of m 2 of GLA where 806 tenants operate. During this first semester, the total rental income increased by 21,3% versus the same period of 2002, sustained by a 19,6% sales increase and a 7,8% increase in visits. Notice that Plaza Mayor (Malaga) opened in April 2002 and the Max-Centre (Bilbao) leisure area opened in July 2002, in a like for like basis total rental income increased by 11%, the sales increased by 14,3% and 2,3% increase in visits. The sales growth is due to, in one side, better tenant performance, in the other side, introduction of new business practices by Sonae Imobiliària. For example, it was not a procedure to audit sales, this procedure in now being applied on a systematic way. Brazil Sonae Imobiliária is the owner (or co-owner) of 6 shopping and leisure centres, with a total of m 2 of GLA where tenants operate. During this semeter, the total rental income from the Brazilian portfolio increased by 34,5% in Reais, against the same period of the previous year. In like-for-like terms the growth was 3,8%. Pág. 7 / 22

8 Management The consolidated business of the Company s shopping centre management, marketing and leasing activities continued to expand during this first semester of The company s portfolio was quite stable in Portugal, Spain and Brazil and we started our activities in Italy. Sonae Imobiliária is now managing leasing contracts in m 2 of GLA. Portugal In the first semester of 2003, in Portugal, Sonae Imobiliária was managing m 2 of GLA, corresponding to contracts with tenants. This portfolio received more than 121,5 million visits (a 0,7% decrease over the first semester of 2002) and sales decreased only by 0,4% comparing with the same period of last year. The performance of the 12 shopping centres, the 2 galleries and Sintra Retail Park held by the Company in Portugal, was positive during this first semester of 2003, taking into account the portuguese economic recession and supply increase of commercial space in the Lisboa area. The occupancy rate in the portfolio was 95,7% in number of shops and 96,5% in GLA. Spain During the first semester of 2003, CCC Consultoria de Centros Comerciales, SA, based in Madrid, Spain Sonae Imobiliária s subsidiary providing property management and letting services to shopping and leisure centres in Spain started the management of Parque Principado (Oviedo), but is no longer managing Urbil and several Eroski Galleries. The total portfolio under management is now of 7 Centers and 1 gallery. Sonae Imobiliária is now managing 876 leasing contracts in m 2 of GLA. This portfolio presented good performance during the first semester of 2003, with 13,9% increase in sales and 21% decrease in visits. On a like-for-like basis, sales and visits increased by 14,3% and 2,2% respectively. Occupancy reached 91,5% in number of shops and 96,1% in GLA. Italy In April 2003 Sonae Imobiliária, through a joint venture with Espansione Commerciale, started the management of Orio Center in Bergamo, one of the largest Shopping Centers in Italy. The Centre has m 2 of GLA and 133 contracts with tenants. Taking into account the italian economic recession, the performance was reasonable, keeping visits and sales at the same level comparing with the same period of last year. Pág. 8 / 22

9 Brazil Also positive was the first semester performance of the Brazilian Shopping Centre portfolio. Unishopping manages m 2 of GLA in six operating shopping centres and contracts with tenants. This Brazilian portfolio received 25,4 million visits (8% increase on the same period of last year), corresponding to sales of more than R$ 504,8 million ( 143,1 million) an increase of 36,4% (in Reais) on the same period of last year. On a like-for-like basis, visits decreased by 4,1% and sales increased by 5,8%. The occupancy in this portfolio reached 84,9% in number of shops and 92,1% in GLA. CAR PARKS In May 2003, reporting back to January 1 st 2003, Sonae Imobiliária sold its participation (50%), that had at the car parking specialist SPEL Sociedade de Parques de Estacionamento, S.A. to SABA Aparcamientos, S.A. (Spain), further focussing the shopping and leisure centre business of the Company. NEW BUSINESS AND NEW TECHNOLOGIES (NBNT) During this semester, the NBNT pursued the implementation of a number of projects, aimed at adding value to the company s activities, by taking advantage of new technologies. Here is a summary of the current status regarding the major projects: Portal SonaeShopping.Com - This is the Internet infrastructure for on-line advertising and communication between the Sonae Imobiliária Shopping Centers and the public. At the end of the first semester, the portal already included a total of 31 Shopping Centers and Galleries under management, in Portugal, Spain and Brazil. It was also decided to extend this portal to Shopping Centers under development, and during this semester 3 new sites were implemented (Parque Atlântico, Estação Viana and Avenida M-40), to be used mostly as a letting tool. Over the next few months, the sites of the remaining new projects will progressively come on-line. This portal, which is linked to Sonae Imobiliária s corporate portal, had more than 5 million visitors during this semester; Portal SonaeShopping.Net - This is a highly innovative B2B tool designed for the use of shop tenants in Sonae Imobiliária Shopping Centers. It has already been launched in 87 Shopping Centers and Galleries under management in Portugal (including the Continente and Modelo galleries), Spain and Brazil. Of the tenants now having access to this Portal, 68% of them have been using it on a regular basis. Until the end of the year this Pág. 9 / 22

10 portal will be extended to the remaining Centers being developed, as a tool to help tenants in planning, designing and building their shops in our Centers. SonaeShopping Gift Cheque Project - This is a customer loyalty programme for individual Shopping Centers. Customers can order cheques either on-line or at kiosks in the Centers and use them as gifts enabling the end-user to shop and buy in those Shopping Centers. The project is now in operation in the company s main 12 Centers in Portugal, and the rollout to Spain and Brazil is expected to occur during the second semester; SonaeShopping.TV This project created a new entertainment service for our customers, and is also a powerful communication tool. In Portugal, its launch happened in May 2003, through a joint venture with SIC, one of the Portuguese TV channels. Up to June 30, the 12 most important malls had already this service available. For the second semester, we expect to enlarge the number of malls in Portugal where the service is available, and also prepare the launch in Spain and Brazil, through other specific joint ventures. ENVIRONMENT During the first semester of 2003, Sonae Imobiliária has continued the implementation of the Environmental Management System (EMS). The EMS revised procedures were approved by Sonae Imobiliária Board and have been adapted to the countries where Sonae Imobiliária operates (the development procedures were adapted for all the countries and the operational were adapted for Spain and Brazil). Environmental Legislation applicable to Sonae Imobiliária business has been up-dated and distributed to all countries were the company operates or hopes to become developing new business. A methodology called Ecoblock started to be applied to LoureShopping (Portugal) as a case study. Ecoblock is a project from Universidade Nova de Lisboa, sponsored by Sonae Imobiliária, which aims to assess the environmental performance of companies and products. This methodology will allow Sonae Imobiliária to evaluate the environmental performance of the shopping centre project. In order to achieve the objectives and targets of EMS an Environmental Training Program has been developed. At shopping centres under operation, training was given to operational teams of Portugal and Brazil. On the other hand, at the shopping centres under development, training was given to: Italy and Brazil project teams; Cosmos Mediterranean (Greece), Dos Mares, Luz del Tajo and Plaza Eboli (Spain) and LoureShopping (Portugal) Sonae Imobiliária team managers. In some of these projects training was also given to the contracted Project Manager teams. Pág. 10 / 22

11 FINANCIAL POSITION AND RESULTS Consolidated Financial Performance The Company closed the first semester of 2003 with Total Direct Income from Investments of 113,9 million, versus 122,3 million in the first semester of 2002, a decrease of 6,9%. EBITDA reached 45,6 million versus 47,2 million in the first semester of 2002, a 3,3% decrease. This decrease is a consequence of the 50% Vasco da Gama sale to ING. This sale leads to rents and fees decrease, included in Total Income, when compared with the first semester of The Company had a Net Financial Cost of 15,3 million. The increase compared with the first semester of 2002 results mainly from the additional financial charges incurred due to the Filo consolidation on the second semester of The Indirect Profit from Investments (or the value increase in Investment Properties) was 60,6 million and it relates only to the value created by shopping and leisure centres already operating at 2002 year end. The Indirect Profit from Investments of the 2002 first semester was 112,7 million and results of the increase in value of the properties already operating at the end of 2001 ( 52,6 million) and the value created by shopping and leisure centres opened during the first semester of 2002 ( 60,1 million). Deferred Taxes result from the valuation change in the Investment Properties. The Net Consolidated Profit (after Minorities) reached 64,610 million versus 91,965 million in the first semester of The analysis of the consolidated Balance Sheet demonstrates the sound financial position of Sonae Imobiliária. Indebtedness (measured as Loans and Other Liabilities, net from Cash) decreased from 697 million as of December 31 th 2002 to 624 million as of June 30 th 2003, due to the reduction of the position in Vasco da Gama to 50%. As a consequence Gearing (measured as Indebtedness divided by Total Assts less Cash) decreased from 38% in December 2002 to 34% in June 2003, a very favourable figure for this type of business. Pág. 11 / 22

12 Consolidated Profit and Loss Account ( 000) Total Direct Income from Investments 1 Sem Sem Var. % -6,9% General Supplies and Services % Personnel Costs % Other Costs % Total Direct Costs from Investments % EBITDA ,3% Depreciation % Net Financial Costs % Negative FX Financial Results n.a Direct Profits % Corporate Tax % Direct Net Profits from Investments % Total Indirect Income from Investments % Indirect Income from valuation of Investments (IAS 40) % Indirect Income from gains on sale of Investments n.a Deferred Taxes % Indirect Net Profit from Investments % Total Net Profit % Minorities % Total Net Profit after Minorities % Pág. 12 / 22

13 Consolidated Balance Sheet ( 000) Investment Properties 30 Jun Dec Var. % -3% Properties Under Development % Goodwill % Other Assets % Cash % Total Assets % Net Worth % Minorities % Loans % Other Liabilities % Deferred Taxes % Total Liabilities % Net Worth, Minorities and Total Liabilities % Business Management Profit and Loss Accounts (un-audited) The Company is publishing, un-audited IAS management profit & loss accounts for each of its businesses. Shopping Centre Development This business has positively contributed with 402 thousand to the Consolidated Result versus a negative contribution of 95 thousand in the first semester of The result achieved during this first semester reflects the increase in the valorization margin ( 3,884 millon) from project under development (i.e. projects with investment already approved and construction licence obtained). The operating costs have also increased relative to the same period of last year, as a result of the Company s effort to search for new investment opportunities at national and international levels and also due to the increase in number of people. Pág. 13 / 22

14 Sonae Imobiliária Development Profit & Loss Account ( 000) 1 Sem Sem 2002 Var. % Project Development Services Rendered % Operating Costs % General Supplies and Services % Personnel Costs % Other Costs % Gross Operating Results (4.909) (1.851) -165% Depreciation Provisions Non-Recurrent Operating Results (27) % Operating Results (5.291) (1.774) -198% Financial Income Financial Costs Financial Results 245 (66) - Current Results (5.046) (1.840) -174% Other Non-Recurring Income/(Costs) (65) 0- Results Before Corporate Taxes (5.110) (1.840) -178% Corporate Taxes (1.611) (436) -269% Direct Net Profits (3.500) (1.404) -149% Realized Property Profit (IAS 40) Non - Realized Property Profit (IAS 40) Total Indirect Income from Investments % Deferred Tax (17) % Indirect Net Profit from Investments % Net Profit 402 (95) - Pág. 14 / 22

15 Shopping Centre Investment This business has contributed with 55,7 million to the Consolidated Result versus a contribution of 68,7 million in the first semester of 2002, a 19% decrease. Volume increased compared to first semester of 2002 mainly due to the inclusion of the Filo portfolio, adquiered on the second semester of The organic growth on rents was cancelled due to the sale and consequence reduction on the contribution, of 50% Vasco da Gama. Parking Result has a 20% decrease versus the same period of last year, again due to 50% Vasco da Gama sale, but also due to a demand retraction in the Lisbon area. The significative amount on Depreciation is due to the goodwill amortization generated by the Filo and 25% Plaza Mayor acquisition Under IAS, the Investment Properties are not depreciated. As previousle refered, Financial costs increased significantly versus first semester 2002, due to 50% Filo consolidation. The valuation of all Investment Properties reached 24,2 million during this first semester compared with 70,3 million in the first semester of Pág. 15 / 22

16 Sonae Imobiliária Assets Profit & Loss Account ( 000) 1 Sem Sem 2002 Var. % Fixed Rental Income % Turnover Rental Income % Key-Money Income % Other Rental Mall Income % Other Income % Total Shopping Centre Operating Income % Property Management Services % Common Charges from Vacant Units % Letting & Marketing Costs % Property Taxes % Capital Expenditures % Centre Owner Contrib. to Promotion Funds % Contract Renewal Costs % Other Costs % Total Shopping Centre Operating Costs % Shopping Net Operating Margin % Parking Income % Parking Costs % Parking Net Operating Margin % Co-generation Income % Co-generation Costs % Co-generation Net Operating Margin % Total Shop. Centre Net Operating Margin % Office Income % Office Costs % Offices Net Operating Margin % Asset Management Fees (Net) % Total Net Income from Serv. Rendered % General Supplies and Services % Personnel Costs % Total Overheads % Gross Operating Results % Depreciation Provisions % Operating Results % Financial Income % Financial Costs % Financial Results (16.116) (11.259) -43% Current Results % Other Non-Recurring Income % Other Non-Recurring Costs Results Before Corporate Taxes % Corporate Taxes % Direct Profits % Realized Property Profit Non -Realized Property Profit (IAS 40) % Total Indirect Income from Investments % Deferred Tax % Indirect Profit % Net Profit % Pág. 16 / 22

17 Shopping Centre Management This business has contributed with 1,560 million to the Consolidated Result versus a contribution of 1,578 million in the same period of last year. Volume has increased 34% compared to first semester of 2002, due to the Filo portfolio management and increase in letting fees result of contract renual in centers on operation as well in new projects. On the other hand, the Filo management business acquisition price generates additional amortization and financial costs, depressing the results to a level near the first semester of We consider this global result very positive and we expect a growing contribution from our activities in Spain. Sonae Imobiliária Property Management Profit & Loss Account ( 000) 1 Sem Sem 2002 Var. % Property Management Fees % Letting Services Fees % Other Income % Total Income from Prop. Management Services % Common Charges Operating Differences (22) (162) 86% General Supplies and Services % Personnel Costs % Overheads % Gross Operating Results % Depreciation % Operating Results % Financial Income % Financial Costs Financial Results % Other Non-Recurring Income/(Costs) (90) % Results Before Corporate Taxes % Corporate Taxes % Net Profit % Pág. 17 / 22

18 Shopping Centres Brazil The Shopping Centres Brazil business includes the Shopping Centre Development business (Sonaeimo), the Shopping Centre Investment business (Sonae Enplanta and Parque D. Pedro) and the Shopping Centre Management business (Unishopping). Fixed rents increased by 41% versus the same period of last year, the main contributor was Parque D. Pedro, opened in March On the other hand, on the first semester 2002, we had a significant contribution of Key-Money and corresponding leeting costs on Parque D. Pedro, this effect is almost insignificant on the first semester of This net effect on Key-Money explains the variance on Operational results comparing with first semester of At financial level, financial charges have been significantly reduced with the shareholder loans related to Parque D. Pedro converted to Capital. As consequence, this business has a positive direct result of 1,160 million. The indirect result is as well positive ( 10,576 millons), as a result of the valuation increase, as of June 2003, of the owned shopping centres. Pág. 18 / 22

19 Sonae Imobiliária Brasil Profit & Loss Account (milhares de euros) 1 Sem Sem 2002 Var. % Fixed Rental Income % Turnover Rental Income % Key-Money Income % Other Income % Total Shopping Centre Operating Income % Property Management Services % Common Charges from Vacant Units % Letting & Marketing Costs % Income Tax % Centre Owner Contributions to Promotion Funds % Other Costs % Total Shopping Centre Operating Costs % Parking Income % Parking Costs % Parking Net Operating Margin % Centre Net Operating Margin % Income from Project Development Services % Income from Property Management Services % Total Income from Service Rendered % General Supplies and Services % Personnel Costs % Structure Costs % Gross Operating Results % Depreciation % Provisions Operating Results % Financial Income % Financial Costs % Financial Results (271) (8.350) 97% Current Results (5.131) 140% Other Non-Recurring Income Other Non-Recurring Costs % Direct Results Before Corporate Taxes (4.281) 141% Corporate Taxes % Direct Profits (4.643) 125% Non -Realized Property Profit (IAS 40) % Total Indirect Income from Investments % Deferred Tax % Indirect Profit % Total Net Profit % Pág. 19 / 22

20 Corporate Centre Finally a pro-forma profit & loss account of the Corporate Centre is presented below, including the parent company, a corporate services company and several instrumental companies. In the corporate services company, further to other departments, the Company has centralised the back office departments of the several businesses in Portugal. This Corporate Centre is not, by itself, a profit centre these accounts are presented just to allow for a full image of the consolidated accounts of the Company to emerge. In global terms, the Operating Costs grew 21% versus the same period of the previous year as a consequence of the increased efforts of the Company to respond to the challenges posed by the internationalisation. Corporate Centre Profit & Loss Account ( 000) 1 Sem Sem 2002 Var. % Services Rendered % Operating Costs % General Supplies and Services % Personnel Costs % Other Costs % Gross Operating Results % Depreciation % Recurrent Operating Results Operating Results Financial Results Other Non-Recurring Income/(Costs) Results Before Corporate Taxes Corporate Taxes Net Profit Pág. 20 / 22

21 ORGANIZATION AND COMPANY STAFF At the end of the first semester of this year, Sonae Imobiliária had a staff of 570, of whom 359 worked in Portugal, 88 in Spain, 6 in Greece, 17 in Germany, 5 in Italy, 1 in the Netherlands and 94 in Brazil. PLANS FOR THE FUTURE Sonae Imobiliária will maintain its positioning as a shopping and leisure centre specialist with an integrated view of the business. Europe will continue to be its main market, never representing let than 80% of its NAV. The Company will continue focussed in the markets where it is already present, developing new projects and also renovating and expanding existing properties, with a view to obtain innovative quality products. IN CONCLUSION The Board of Directors wishes to thank all the Retailers in Sonae Imobiliária s shopping centres, the Official Entities, the Financial Institutions and its Suppliers for the help they have given and the trust they have placed in the Company. The Company also wishes to thank the Official Auditor for his co-operation throughout the period. A word of recognition to the Company s Staff for all their hard work over the past semester, as reflected in the results achieved by the Company. Maia, 22 th September The Board of Directors. Belmiro Mendes de Azevedo Chairman (non-executive) Jeremy Henry Moore Newsum Director (non-executive) Pág. 21 / 22

22 Neil Leslie Jones Director (non-executive) Ângelo Ribeirinho Paupério Director (non-executive) Álvaro Carmona e Costa Portela President João Gonçalo Sassetti Pessoa Jorge Director José Edmundo Medina Barroso de Figueiredo Director Pedro José D Hommée Caupers Director Fernando Maria Guedes Machado Antunes Oliveira Director Pág. 22 / 22