Soares da Costa I Report and Accounts I First Half

Transcription

1 Soares da Costa I Report and Accounts I First Half

2 CONTENTS MANAGEMENT REPORT 3 1. FIRST HALF OF 2013 CONSOLIDATED RESULTS 3 2. ORGANIZATION CORPORATE SOCIAL RESPONSABILITY MAIN RISKS AND UNCERTAINTIES PARTICIPATIONS AND TRANSACTIONS OF THE MEMBERS OF CORPORATE BODIES QUALIFIED SHAREHOLDINGS STATEMENT ON THE CONFORMITY OF THE FINANCIAL INFORMATION 25 CONSOLIDATED FINANCIAL STATEMENTS 26 CONSOLIDATED FINANCIAL POSITION STATEMENT 26 SEPARATE CONSOLIDATED INCOME STATEMENT 28 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME 30 STATEMENT OF CHANGES IN EQUITY 31 CONSOLIDATED CASH FLOWS STATEMENTS 32 ACCOUNTING POLICIES AND EXPLAINATORY NOTES TO THE CONSOLIDATED ACCOUNTS 36 Soares da Costa I Report and Accounts I First Half

3 MANAGEMENT REPORT 1. FIRST HALF OF 2013 CONSOLIDATED RESULTS (Non-audited accounts) HIGHLIGHTS Consolidated net earnings attributable to the Group in the first half of 2013 reached -9.2 million Euros (versus million Euros in the same period of the previous year); Financial result was million Euros, improving compared with million Euros in the first half of 2012; Recurrent EBITDA of 38.4 million Euros showed a resilient margin (+12.2%); Turnover of million Euros, decreasing 26.3%, mainly due to the pronounced decline of the activity in the domestic market (-44.0%) and delays registered at the start of some works in Angola and in the US market; Order book of 1.1 billion Euros (+1.5% compared with December 31, 2012), with a significant increase of backlog works in Africa (Angola % to 525 million Euros and Mozambique +29.6% to 156 million Euros). Key Performance Indicators (million Euros) 1H H 2012* Variation Turnover % International % Domestic % EBITDA % EBITDA margin 10.6% 9.1% +1.5p.p. Recurrent EBITDA* % Recurrent EBITDA margin* 12.2% 12.7% -0.5p.p. Operational result (EBIT) % Financial Result % Earnings before Taxes Net Earnings attributable to the Group H2012*: Restated accounts with the Beira interior motorway concession accounted by the intangible asset model. EBITDA* = Adjusted EBITDA from non-recurrent costs (from labour contracts termination compensations and from a tax nature lawsuit accounted I 2012). Soares da Costa I Report and Accounts I First Half

4 ACTIVITY ANALYSIS As the activity framework we must refer the Portuguese construction sector decline. Stigmatized by the powers and some (public) opinion with a denounciation based on the supposed fact that it was in the past, an artificially enhanced sector (through the execution of non-priority public projects, and even, in some cases, of projects with a questionable economic rationality) the sector is severely hit by the restrictions on public investment imposed In the context of the excessive deficit budget combat measures and of the Financial and Economic Help Programme. Therefore, we now consistently witness to the stoppage, postponement or abandon of important projects, some of which of strategic interest to the country s development. Associated with this behaviour of the public area, the GDP s decrease, and the restrictive environment in the access to the financing means and the shaken economic confidence, created an adverse framework to the private investment, which embodies and aggravates a recessive cycle of the construction sector to a level without precedents. The construction sector registers, in the domestic context, a cumulative and progressive deterioration well demonstrated in the following chart. The most recent evolution shown by the statistical data from the national static institute (INE 1 ) reveals an average change in last twelve months (as of May 2013) of -19.3% of the construction production index, resulting from variations of -17.4% in the construction of buildings and -20.8% in civil engineering segment. In May, the homologous variation of the production index was -19.4% (-21.3% in April), above the average change in the last twelve months, not indicating any rebound trend. Evolution of the Construction Production Indexes in Portugal ( ) Buildings Civil engineering Total Source: INE Regarding the evolution of employment in the sector, the average change in the last twelve months of the index (as of May) was, according to the same source, -18.6%, while the remunerations index reveals a change of -19.5%. FEPICOP, on the other hand, stated 2 that the sector has lost 74 thousand employees in the last twelve months. In fact, during the first quarter of 2013, was registered the third largest homologous decrease of the last ten and half years in the number of 1 Production, Employment and Wages Indexes in Construction, May 2013 INE, July 11, Conjuntura da Construção nº 69, maio de 2013, FEPICOP (Construction Situation Analysis number 69, May 2013, FEPICOP) Soares da Costa I Report and Accounts I First Half

5 jobs, resulting in an aggravation of the number of unemployed workers accounted in the employment centres that surpassed 111 thousand, on a monthly average during the first quarter of 2013, an historical maximum. Taking into consideration this recessive context, without any prospect of improvement in the short/ medium term, the only rational solution is to continue to invest in the external markets. In the last years the strategy of the company has been based on a high internationalisation level, a trend that should be continued and intensified given the current conditions. Therefore, from the Group s activity during the first half, as in the 2012 s figures, we highlight the following dominant vectors: (i) International bias of the construction business area; (ii) Adjustment of the organisational structures and adaptation of the production means to the market s dimension, with the internal mobilisation of the human resources, reduction in the number of employees and rationalisation, a strategy in which the internal mergers are also included (during the first half, Socometal merged with Sociedade de Construções Soares da Costa). (iii) Focus on the preservation of the economic and financial sustainability of the operations and alienation of noncore participations (during the first half: Carta Angola, MTA and San Jose San Ramón concession in Costa Rica). The results and indicators of the first half of 2013, which are analysed below in a more detailed way, reflect this strategic guidance and the framework described. A note to the fact that, guarantying the comparability in terms of homogeneity of accounting policies, the financial statements of the first half of 2012 were restated to restore the accounting treatment of Beira Interior motorway concession (referring to the jointly controlled participated Scutvias, consolidated by the proportional method) to the intangible asset model, instead of financial asset model that was used in the elaboration of the financial statements of the first half of 2012, and which changing s requisites were not yet confirmed. TURNOVER The following tables show turnover s breakdown by geographical market and by business area: Turnover Breakdown by Geographical Market (million Euros) 1H 2013 % 1H 2012 % Variation Portugal % % -44.0% Angola % % -26.6% U.S % % -18.4% Mozambique % % 1.4% Other countries % % 86.6% Total % % -26.3% Turnover Breakdown by Business Area (million Euros) 1H 2013 % 1H 2012 % Variation Construction % % -33.5% Concessions % % -41.6% Real Estate % % 670.0% Energia Própria % % -35.0% Holding and other % % -9.5% Consolidation s eliminations % % -60.5% Total % % -26.3% Soares da Costa I Report and Accounts I First Half

6 The turnover decline assumes some dimension as a result of some matters that were already described in the first quarter s financial information and that continued to influence turnover s performance. In the domestic market, to the already described market s recessive context, we add as an important reason to the Group s evolution the significant reduction in this half compared with the same period of last year of the contribution of the construction of Transmontana motorway that is almost completed. In the international market, namely in Angola, specific factors, external to the Group s control, determined the delay in the start-up or the lower pace of the production of some important projects athand, implying a gap to the budget as well as a gap between the activity and the installed capacity. Angola, Portugal, United States and Mozambique continued to rank in this decreasing order in terms of contribution to the Group s activity volume. The remaining markets (from which we highlight Brazil, Oman, S. Tomé and Principe and Romania) increased its contribution during this first half from 9.3 to 17.4 million Euros, now representing 5.5% of the consolidated turnover. Following is a summarised description of the activity during the first half of 2013 by geographical market. From the Group s activity in PORTUGAL, we highlight the following works: Mangualde s gas pipeline, to REN; Moura/ Safara water adductor, to Águas do Alentejo; Waste water treatment centre in Paço de Sousa, to Simdouro; Sana Evolution Hotel, to Aziparque. We also highlight the following works that were completed during this first half: Serra da Estrela Heritage Inn, to Enatur; Aljustrel block, to Edia; Pedrógão Block, also to Edia; Widening and reconstruction of 2x3 ways of the stretch Maia/ Santo Tirso of A3 motorway, to Brisa. In spite of the 37 million Euros 3 lower contribution in this first half compared with the same period of last year, we must mention the construction of Transmontana motorway held by the complementary group of companies (ACE), CAET XXI, to the sub concessionaire Autoestradas XXI, in which the Group has 50% stake. With the entry into service, during July, of the sub stretches Santa Comba de Rossas interchange to Mós interchange and of the stretch Mós interchange to Bragança Poente interchange, with a 12 km extension (allotment 9), from circa 20 km of the allotment 8 (Amendoeira/ Vale Figueira) and allotment 9 (stretch 1 up to km 2.8, excluding Santa Comba de Rossas interchange), as well as circa 7 km of allotment 1 (stretch 2 Vila Real Sul interchange to Vila Real Nascente interchange), total 129 kms of Transmontana motorway that are opened to circulation from the 134 km that constitute the whole project, being possible to travel from Vila Real to the Spanish boarder. Therefore, only 5 km are not yet opened to circulation (including Corgo viaduct), which should happen to the end of August, after the completion of Parada de Cunhos motorway interchange. From the activity developed by the complementary group of companies we highlight the contribution from Hidroalqueva, ACE and from Mota-Engil, Soares da Costa, Monte Adriano Matosinhos, ACE, which developed works related with the general contract for the construction of the capacity reinforcement of Alqueva s electricity central, to EDP and with the infrastructures related with Indáqua Matosinhos investment plan, respectively. ANGOLA continues to be the main international market to the Group. To this country, the International Monetary Fund, in its Regional Outlook to Sub-Saharan Africa 4 estimates a GDP real growth rate of 6.2% to 2013, which reaches 7.3% excluding the oil sector. In the construction sector, after the last years outbreak of buildings s construction in Luanda city, the next years should be characterised by a growing diversification of the investment taking into consideration the whole country s strong growth potential in the construction of infrastructures, social equipment and housing. 3 Figure corresponding to the Group s participation in the project. 4 Regional Economic Outlook Sub-Saharan Africa, Building Momentum in a Multi-Speed World IMF, May Soares da Costa I Report and Accounts I First Half

7 Soares da Costa s major works in terms of contribution to turnover during the first half were the following: Dipanda Towers in Luanda, to Novinvest; Science and Technology Museum in Luanda, to GOE; Requalification of Luanda seaside, to Sociedade Baia de Luanda; INE s new head offices in Luanda; Luanda Towers project, to Vista Club; New office building to Companhia de Seguros AAA (insurance company); Several works in Luanda, to Sonils; Building in Lobito, to BESA; Huambo Cultural Centre, to the Provincial Government; Requalification of Boavista and Sambizanga hillsides in Luanda, to the Construction and Urbanism Ministry; Muxima Plaza building in Luanda, to Prominvest; INE s provincial head offices in Malange, Huambo and Benguela. During the first half of 2013, the Group s turnover in this market reached million Euros, suffering the negative impact arising from the unpredictable delay on the start of the works of three major projects: requalification of Boavista and Sambizanga hillsides, that started only in last March, but still in a conditioned way, as well as the housing project to Angola LNG in Soyo and the infrastructure and administrative buildings of the Futila Industrial Hub in Cabinda, that will start in the first months of the second half of the year. MOZAMBIQUE continues to earn a special attention from the international community regarding the business context in general and the construction and public works in particular, given the positive results of its economic growth translated by indicators that counteract the recessionary environment of the European economies. The Mozambican economy grew 7.5% in 2012 and estimates point out to an 8.4% growth this year 5, to which should significantly contribute the production rise in the extractive industry sector and the financial activities expansion. However, the flows that affect the country in the first months of each year and the recognised deficit in the transport infrastructures, are a constraint to the mining exploitation, and should affect the most optimistic forecasts. Soares da Costa Group is present in Mozambique through a Mozambican law company, Soares da Costa Moçambique, SARL, whose capital is shared between the Soares da Costa Group, with a 80% stake, and IGEPE Instituto de Gestão de Participações do Estado, with the remaining 20%, and also through the permanent establishment of the Sociedade de Construções Soares da Costa, SA. The Group s activity in this market maintained and even slightly surpassed (+1.4%) 2012 s activity level, obtaining a 35.2 million Euros turnover, which represent 11% of the consolidated turnover. Projects run by Sociedade de Construções Soares da Costa, SA are developing according to the initial planning. We highlight the construction works of the new bridge over the Zambezi river in Tete, being completed the bridge s road accesses in both margins, being expected to the third quarter of 2013 the closing of the bridge deck. We also highlight the development of the stretches 2 and 3 of EN 221 road, between Combomune and Chicualacuala, with the start of application of the topcoats, with the conclusion of the work being forecast to the first half of These works that had already started in last year have a relevant social, economic and financial role, both to Mozambique growth and to its neighbour countries and SADC s (Southern African Development Community) partners given its structuring impact in the region s economy. A note also to the substantial development of the works of the extension of Pemba s airport, scheduled for completion in the third quarter of this year. 5 Idem Soares da Costa I Report and Accounts I First Half

8 During this first half were initiated the construction works of nine bridges in the regions of Manica and Sofala and the rehabilitation works of the bridges from stretches 6 and 7 from Nacala s railway corridor, with construction yards being set for both projects at this phase. Regarding the activity of the participate company Soares da Costa Moçambique SARL, we highlight the completion of the following works: social works in Caia for the Zambezi bridge, and rehabilitation of the Revolution Museum. From the circa thirty works currently under construction by this company, we highlight due to the its almost completion phase: Vip Hotel in Tete scheduled for completion by year-end 2013, the rehabilitation of Maputo s central marketplace scheduled for completion in the third quarter of 2013, Vip Hotel in Beira scheduled for completion in the first half quarter of 2014 and two works to Hidroelétrica de Cahora Bassa scheduled for completion in the second half of In the first half several works were initiated, the most relevant being Mapai s hospital, Banco de Moçambique (Bank of Mozambique) in Beira and the extension and reshuffle of Petromoc s head offices. In the UNITED STATES, Prince Contracting LLC s positioning is consolidated in the road infrastructure segment, already being an important player amongst the major contractors of the South eastern U.S. Activity during the first half developed in this segment namely with the construction and rehabilitation of roads and bridges, with a total of eight active works in the states of Florida and Georgia. Amid these works, based of its importance to the activity s turnover, we highlight the I- 595 Section A & B, I-75 Tampa, DB I-75 (SR93) SWFIA Access Road projects, all in the Florida state and I-75- Bibb County project in Georgia state. The decrease of turnover in comparison with last year essentially resulted from delays in two works: Execution of the work I-75 Tampa, due to an earthmoving problem; Start-up of the DB I-75 (SR93) SWFIA Access Road due to an elaboration and approval process of the project longer than initially planned (is a design-build project). Both situations are now surpassed, and we expect that, up to year-end, turnover substantially recovers to a level close to the one achieved in last year. In the other markets, we highlight in S. TOMÉ AND PRÍNCIPE the opening of the new head offices of Banco Internacional de São Tomé e Príncipe by the end of May, located in Praça da Independência, in São Tomé s main city and in which was present the president of S. Tomé and Principe Republic, amongst other members of the government. On the other hand, the rehabilitation works of national road number 1 continue. In the SULTANATE OF OMAN, continues to be developed at the expected pace the Muscat Roadway Interchanges project, an infrastructure work executed in consortium with a local company and that includes roads, five viaducts in interchanges and associated infrastructure networks, between Masqat airport and the express road of the same city. This work already started last year. In ROMANIA, the work Constructia Variantei de Ocolire Tecuci continues under execution, amounting to a total of 49 million RON (circa 11.1 million Euros) to the Romanian national road authority (CNADNR - Compania Nationala de Autostrazi si Drumuri National din Romania S.A.), that started last year and scheduled for completion in the year-end PROFITABILITY Operational Profitability Considering the usual reporting segments, from the financial statements of the first half of 2012 and 2013, we can extract the following key performance indicators (EBITDA, EBIT): Soares da Costa I Report and Accounts I First Half

9 EBITDA and EBIT by Business Area (million Euros) 1H 2013 % Margin 1S 2012 % Margin Variation EBITDA % % -14.0% Construction % 2.2% % 5.9% -74.6% Concessions % 40.9% % 25.3% -5.3% Real Estate % 22.9% % 77.8% 126.9% Energia Própria % -57.5% % -73.0% -48.8% Group and others % 1.4% % - - Eliminations % (million Euros) 1H 2013 % Margin 1S 2012 % Margin Variation EBIT % % 25.4% Construction % -1.0% % 1.4% % Concessions % 27.8% % 17.7% -8.2% Real Estate % 19.7% % 48.9% 209.8% Energia Própria % -76.4% % -76.8% -35.3% Group and others % -6.6% % - - Eliminations % -4.2% As detailed in the previous table, EBITDA reached 33.6 million Euros, decreasing 14.0%, but with margin over turnover with a positive evolution going from 9.1% to 10.6%. For a more accurate comparative analysis, we must consider the abnormal effect last year of the accounting of a cost from a tax related lawsuit amounting to 8.7 million Euros (recorded in the segment Group and others ). Regarding the labour contracts termination by mutual agreement costs these impacted EBITDA and EBIT by 6.4 million Euros and 4.8 million Euros, in the first half of 2012 and first half of 2013, respectively. Therefore, recurrent EBITDA, resulting from the exclusion of the items mentioned in the previous paragraph, reached 38.4 million Euros, below the 54.3 million Euros from the first half of This EBITDA decrease results mainly from the reduction of the activity as EBITDA margin to turnover was 12.2%, sustained at a level of reasonable efficiency (12.7% in the same period of the previous year). This evolution happens in spite of the profitability reduction from the construction business area, affected by some underemployment of the production resources, a situation that we expect to be partially recovered during the second half. Financial Results Financial results in the first half of 2013 were million Euros, improving compared with the million Euros recorded in the same period of The debt restructuring process formalised by the end of last year, has revealed itself as an important tool to the contention of the net financing costs (interest paid less interest received) that reached, in this first half, 20.3 million Euros, versus 23.5 million Euros in the first half of Foreign exchange differences were positive (+0.4 million Euros) in the first half of 2013, however, on a comparable basis, were less favourable than in the same period of 2012 (+1.7 million Euros). Income and capital gains from capital participations amounted to 3.3 million Euros which compares with the inexpressive figure of 0.2 million Euros from the previous year, contributing to the financial results improvement. The 3.3 million Euros accounted in the first half of 2013 results from the alienations that materialised during this period namely of the Soares da Costa I Report and Accounts I First Half

10 participated companies MTA and Carta Angola that performed non-core activities, and the San José- San Ramón concession in Costa Rica. Earnings Before Taxes From the combined effect of the operational and financial results described above, we reach a earnings before taxes figure that exteriorize a loss of 7.3 million Euros (-16.3 million Euros in the first half of 2012). Net Earnings With the tax function suffering in the last years in Portugal an onerous evolution not only regarding its nominal rates but, in particular, in terms of a progressive tax disregard and increasingly more comprehensive of the negative components of the revenue of companies, net earnings stood negative at 9.3 million Euros, still improving compared with million Euros accounted in the same period of last year. CONSOLIDATED FINANCIAL POSITION STATEMENT From the comparative analysis of the consolidate financial position statements as of June 30, 2013 and December 31, 2012, the key and most expressive change at the ASSETS side was recorded at the accounts receivable (non-current) that rose from million Euros to million Euros. This item (and its increase) is related with the financial assets of the concessions that follow the financial asset model and that are still under construction (substantially Autoestrada XXI - Subconcessionária Transmontana but also Estradas do Zambeze in Mozambique). Regarding the current assets, the largest variation was on the other current assets item (+24.1 million Euros) mainly related with the multiannual construction contracts, where stands the weight of the subsidiary Sociedade de Construções Soares da Costa, SA. On the LIABILITIES side, there was an important reduction in the value of the derivatives, namely in the non-current liabilities that went from 67.0 million Euros to 49.7 million Euros, and is related with the fair value of the interest rate hedging derivatives contracted under the concessions business. This evolution, reflecting the change in the fair value of these instruments, also mirrors the fact that the maximum peek of the Group s exposition has been reached, according to the contracts. Still at the non-current level, the consolidated financial position statements records at June 30, 2013, a 14.5 million Eros liabilities in the item other loans, related to the Group s participation in Autoestradas XXI. As happens to the other current assets, also the other current liabilities are mainly related with multiannual construction contracts, and recorded an increase in its value, going from million Euros to million Euros. Concerning SHAREHOLDERS EQUITY in the first half there were not any operations on the share capital. However, it must be noted that, as detailed in the proper section, during the first half the company alienated all the own shares held. In spite of the accounting of the consolidated net earnings of this period (-9.3 million Euros), shareholders equity improved from 53.2 million Euros by year-end 2012 to 56.7 million Euros as of June 30, In this context, the positive contribution of 13.4 million Euros of the variation in the fair value of the coverage derivatives (net of deferred taxes) was crucial. NET DEBT The following table highlights the net debt evolution. Corporate net debt (recourse debt) amounted to million Euros as of June 30, 2013, increasing 28.1 million Euros in the first half of 2013 (+7.9 million Euros during the second quarter of 2013). Soares da Costa I Report and Accounts I First Half

11 Net Debt Evolution and Breakdown (Recourse and Non Recourse) (million Euros) Total Net Debt 1, , ,024.2 Recourse Non recourse Evolution of Recourse Net Debt and Recourse Net Debt to EBITDA Ratio (million Euros) 1H Recourse Net Debt Ratio (Recourse Net Debt / Recourse EBITDA*) 12.3x 8.9x 8.1x Note: EBITDA* = EBITDA from the last twelve months, adjusted, excluding non-recurrent costs (costs from the termination of labour contracts by mutual agreement and from a tax related lawsuit) CAPITALIZATION OPERATION As announced today, the Group has reached an agreement regarding a capitalization operation of its subsidiary Soares da Costa Construção, the sub holding that owns the participations in the construction area. This capitalization will be made through a capital increase to be subscribed by a new investor in the amount of 70 million Euros. After the capitalization operation, in the final corporate structure, Soares da Costa Group will hold 33.33% of the capital of Soares da Costa Construção, and will maintain the participations currently held in the remaining business areas and the construction business in the US market. COMMERCIAL ACTIVITY: ORDER BOOK Above were already mentioned the reasons that lead to an intensification of a strategy mainly focused on the international markets. However, a note to the fact that this effort is not within reach to all the companies that fight for survival on this sector, mainly those with a lower dimension. In this perspective, and adding that there are not enough tenders to fulfil the legitimate prospects of employment of the installed capacity, as well as the effective inefficiency of the permits system in Portugal that do not guarantee the necessary differentiation, it can be easy concluded that the commercial activity in the domestic market is struggling with a massive lowering of prices. Tenders are few, bidders to each work are in large number, and prices presented are abnormally low. In this scenario, the commercial activity of the company s structured based in Portugal, sustained by the technical capacity of the remaining supporting segments, and concentrated its efforts in an intense way in the international tenders. This does not mean that the Group does not seek for commercial opportunities in its domestic country, but only that the needs imposed by this market are quite below the Group companies fair ambitions, namely those from Sociedade de Construções Soares da Costa, SA. Even so, amongst the awards that happened during the first half in PORTUGAL, we highlight the construction works of an industrial block to Groz Beckert and the waste water treatment centre to Águas do Alentejo. In ANGOLA, during the first half there was the award of some important works, significantly increasing the order book in this market. In this context, we highlight the award of the second phase of BESA s head office building in Luanda, the Robert Hudson facilities in Talatona, a call centre to Movicel, industrial facilities to Sonils, a key part of the structure of the Muxima Plaza complex in Luanda to Prominvest and commerce and office buildings, Rainha Ginga and Cidade Alta, in Luanda to Lunendurg and Hightown, respectively. Still under the awards to the subsidiary Sociedade de Construções Soares da Costa, more recently, was awarded the construction contract to the head offices of Empresa Nacional de Electricidade (ENE) in Luanda, amounting to 46.9 million Soares da Costa I Report and Accounts I First Half

12 Dollars (35.5 million Euros) and an office, commerce and residential building, also in Luanda, to a private promoter amounting to 25 million Dollars (19 million Euros). A note to the important award of the subcontract Supply & Installation of IBS (Intelligent Building System) to the subsidiary Clear Angola, concerning the Intercontinental Hotel & Casino Project, already mentioned in the first quarter of In MOZAMBIQUE, in a context strongly streamlined by the external investments in areas like the mineral resources (coal) and natural gas, several business opportunities have emerged, to which Soares da Costa has dedicated the attention they deserve, striving to enter in these niches of opportunity, based on commercial efforts and presenting proposals to public or by invitation tenders, having as goal enhancement of the activity and the increase of turnover in this emerging market. During the first half, we highlight the award by CDN Corredor de Desenvolvimento do Norte, of the project Section 6 & 7 Bridges, consisting on the rehabilitation and construction of thirty bridges/ viaducts along 550 km between the border with Malawi and Nacala. This work has an execution period of 24 months and amounts to 33.4 million Dollars, with its construction yard already being set. The commercial activity developed by the subsidiary Soares da Costa Moçambique, SARL has been intense and fruitful. Amid the recent awards, we stress the following works: extension and reshuffle of the head offices of Petromoc, a works already started, the design-build of the new head offices of the Justice Ministry in Maputo a 11 million Euros works and the rehabilitation of the Maputo s railway station. By the end of the first half, final negotiations with the client HCB-Hidroeléctrica de Cahora Bassa were taking place regarding the construction of fifty dwelling, type 3, in Songo village in Tete region, a work amounting to 15.8 million Euros, an award that was confirmed as announced to the market on August 1, In the UNITED STATES, Prince Contracting. LLC has been able to solidify its position in the infrastructures segment, obtaining in the first half the award of several new projects. Besides the road work of design-build of US27 from Barry Road to US192 in the Polk and Lake Counties (in Orlando zone, Florida), already mentioned in the first quarter, this subsidiary was also the winner of a tender for the construction of two miles of US301 motorway, in Tampa, in the Florida state. Amounting to 21 million Dollars (circa 16 million Euros), the proposal from the Group s subsidiary competed against more than 10 bidders. The works include the requalification of a 150 m bridge, drainage, bases and pavements, services and signalling. To the works portfolio in this market we must add the reconstruction work of the SR544 road in Polk County (Scenic Highway) in Florida. Amounting to approximately 8 million Dollars (circa 6 million Euros), works include the flexible pavement, replacement of the existing drainage system, horizontal and vertical signalling and lightning, in a 1.5 million (circa 2.5 km) extension. Already after the first half (and therefore, still not included in the order book detailed below), is of note that Prince won the tender Design-Build E7I24 I-75 North of CR 54 Widening with a 71.2 million Dollars proposal (approximately 53.8 million Euros). This is a design-build work in Pasco County (in Tampa, Florida), that includes the construction of an additional way in each direction in the Interstate I-75 in a 6.7 million Dollars (10.8 km) extension, including the construction of two new bridges and the reshuffle of other two, and the reshuffle of the interchange to the SR52. Growing prospects to the US economy, as well as the political consensus regarding the need to develop road infrastructures as an important part to fight unemployment, has led to the increment of the federal and state budgets to the sector. It is expected, in the coming years, the launch of a significant set of projects, with Prince in a privileged positioning to a possible intervention with favourable profitability conditions. In BRASIL, we continued with an intense commercial activity mainly directed to private clients; several proposals have been presented, usually in partnership, for execution of works in different states. In the context of the Viracopos airport works,, proposals amounting to 15 million Reais were presented during the first half, originated 11.5 million Reais of contracts (circa 3.8 million Euros). The public sector was not neglected, with the participation in three public tenders in the Ceará state to the Department of Government, Department of Education (SEDUC) and Department of Infrastructure (SEINFRA), consisting the project, in Soares da Costa I Report and Accounts I First Half

13 this last case, of works for the implementation of the east line of the Fortaleza subway, including the civil construction of 12 km of a subway in double tunnel using a shield, the execution of twelve underground stations and a surface station. We expect that from this diversified pipeline of works, some bids may be successful in the near future. Confirming these expectations, already after the closing of the first half, was awarded in Fortaleza, Ceará, an 84 million Reais (circa 29 million Euros) a work consisting in the construction of a set of dwellings and respective infrastructures. In ROMANIA, commercial effort was been focused in projects related with renewable energies (wind and photovoltaic parks) and environment (water and sewage networks). We still waiting for more information on a tender in partnership with Eiffage Energia to Vestas, related with the construction of a wind park, totalling 25 million Euros. Also waiting for a decision by the contracting authority are four public tenders to the construction of the water and sewage networks to Hidroprahova, amounting to 52 million Euros (tenders in partnership with local company). Globally, by the end of the first half, order book reached 1,063.6 million Euros, broke down by market as detailed below, a figure 1.5% above the value recorded by year-end 2012, a growth that becomes 5.8% considering the adjustment from the elimination of the order book of Costa Rica concession, included in the previous year figure. The following table shows a summary of the evolution of the backlog by geographical market. Stands out the very significant growth of the weight of Angola and Mozambique that reveal high growth compared with the previous year, with the particularity of the Mozambican market reaching the level of representativeness of the domestic market. Order Book (million Euros) % % % Variation Total 1, % 1, % 1, % 1.5% Angola % % % 26.4% Portugal % % % -25.8% United States % % % -9.5% Mozambique % % % 29.6% Other countries % % % -39.7% Prospects and Guidance to 2013 In the domestic market the Transmontana motorway project will be concluded; this is a multiannual project that in the last couple of years gave a significant contribution to the Group s activity and assumed an important role given the depressive context of the domestic demand. In the international market, namely in Angola, it is expected some recovery of the operational activity during the second half, a topic that together with the preservation of the operational profitability margins are crucial to guarantee the economic sustainability. RELEVANT FACTS DURING THE FIRST HALF Work awards in Angola: in February 2012 were awarded to the subsidiary Sociedade de Construções Soares da Costa, SA, two works of office and commercial buildings in Luanda, including foundations, structure, finishing works and installation of special equipment worth a total of 51.5 million Dollars (39 million Euros), and an execution period of 16 to 24 months. Merger of Socometal: as of March 1, 2013 was made the definitive register of the merger by incorporation of Construções Metálica Socomeral, SA in Sociedade de Construções Soares da Costa, SA. As the mergers by incorporation done in mid-2012, this operation is justified by the significant slowdown of the construction activity in Portugal, and has as goals, on one hand the operational and costs rationalisation, and on the other hand, to create Soares da Costa I Report and Accounts I First Half

14 opportunities to the internationalisation of Socometal s activities under Sociedade de Construções Soares da Costa s geographical diversity. Works award in Mozambique: the company reported on April 12, 2013 that was awarded to its subsidiary Sociedade de Construções Soares da Costa, SA by CDN Corredor de Desenvolvimento do Norte, the concessionaire of Nacala s railway in Mozambique, the work Section 6 & 7 Bridges. The project entails the rehabilitation of the set of bridges and construction of new ones, totalling 30 bridges and will be developed on the north of Mozambique, on a 550 km extension between the border with Malawi and Nacala. The works has an execution period of 24 months and is worth 33.4 million Dollars (25.5 million Euros). General meeting of shareholders: as of April 30, 2013 was held the Group s general meeting of shareholders that, along with other deliberations, approved the management report, individual and consolidated accounts from 2012, the application of the individual net earnings and elected the corporate bodies for the triennium The board of directors that meet after the general meeting of shareholders, deliberated to nominate an executive committee, the company s secretary and the alternate secretary (please see its composition in the section Organisation ). Was also announced that the term to the capitalisation operation (announced on November 27, 2012) in accordance with the Bank Debt Reprogramming, was extended, with the agreement of the banks involved, to August 31, SOARES DA COSTA SHARES ON THE STOCK EXCHANGE SHARE CAPITAL REPRESENTATION Pursuant to article 4, no. 3, of the by-laws, the company s share capital is represented by one hundred and sixty million scriptural bearer shares, without par value, divided into two categories of shares, reciprocally convertible through a general meeting deliberation: a) one hundred and fifty-nine million nine hundred and ninety-four thousand four hundred and eighty-two (159,994,482) ordinary shares; b) five thousand five hundred and eighteen (5,518) preferred non-voting share, but with a preferential right to a dividend and to the reimbursement of the respective nominal amount in the event of the liquidation of the company. OWN SHARES During the first half of 2013, and as announced on April 24, 2013, Soares da Costa Group alienated 597,292 own shares, and as of June 30, 2013 does not hold any own shares. SHARE PERFORMANCE During the first half of 2013, the price of the Soares da Costa shares recorded a very positive evolution, translated into a 62% increase, after a cumulated fall of 65% in Therefore, as of June 30, 2013, each share was worth 0.21 Euros versus 0.13 Euros by the end of Only considering the second quarter of 2013 evolution, the performance was also positive, with the share price rising 11% to 0.21 Euros from 0.19 Euros per share. In comparative terms, in the first six months of this year, the PSI20 index lost 2%, with the 5% fall in the second quarter of 2013, offsetting the gains achieved during the first quarter. Concerning liquidity s progression in this first half, Soares da Costa share also recorded a very positive performance, with the average number of traded shares by trading day reaching 362 thousand shares versus 50 thousand in On a quarterly analysis, in the first quarter this average was even higher than the first half, circa 460 thousand shares versus 264 thousand shares in the second quarter. The improvement in terms of amount traded (or turnover) was even more pronounced, benefiting from the already mentioned rebound of the share price: average turnover in the first half of 2013 was 76 thousand Euros versus 10 thousand Euros in full-year Soares da Costa I Report and Accounts I First Half

15 This liquidity improvement recorded during the first half was in line with the market s general evolution: PSI20 s average turnover in the first half was 113 million Euros by trading day versus 77.5 million Euros in 2012, with a slight higher average in the second quarter (116 million Euros in the second quarter and 119 million Euros in the first three months of the year). Key Performance Indicators of Soares da Costa s shares Q 1Q Q 3Q 2Q 1Q 2011 Share Price, beginning of the period (Euro) Share Price, end of the period (Euro) Higher share price (Euro) Lower share price (Euro) Number of shares traded (thousand shares) 16,647 28,549 12,902 5,009 3,109 1,413 3,372 21,293 Cumulated turnover (million Euros) Number of shares traded by trading day (average; thousand shares) Turnover by trading day (average; thousand Euros) Source: Euronext Evolution of Soares da Costa Stock Price (Euros) and Number of Shares Traded in the first half of ,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1, Number of Shares Traded ('000 shares) Stock Price (Euro) Jan Feb Mar May Jun Jul Source: Euronext Soares da Costa I Report and Accounts I First Half

16 2. ORGANIZATION Below we detail the composition of the corporate bodies, the company s organogram and the changes that occurred during the first half in the Group s consolidation perimeter and consequent participations and consolidation methods structure, allowing observing the coverage and composition of Soares da Costa Group. The complete list of the participated companies, directly or indirectly held, is presented in the explanatory notes to the financial statements, note 6 to 9, where other information is also displayed. CORPORATE BODIES The current composition of the corporate bodies following the deliberations of the general meeting of shareholders held at April 30, 2013 and the board of directors held at the same date: Board of the General Meeting: Chairman: Júlio de Lemos Castro Caldas Secretary: João Pessoa e Costa Board of Directors: Chairman: António Sarmento Gomes Mota Members: António Manuel Pereira Caldas Castro Henriques (CEO) Pedro Gonçalo de Sotto-Mayor de Andrade Santos (executive member) Jorge Domingues Grade Mendes (executive member) Investifino, Ltd., NIPC MT appointing to hold office in his own name José Manuel Baptista Fino Parinama Participações e Investimentos, S.A. NIPC , appointing to hold office in his own name Jorge Armindo de Carvalho Teixeira Manuel Fernando de Macedo Alves Monteiro Supervisory Board: Chairman: António Pereira da Silva Neves Members: Carlos Pedro Machado de Sousa Góis Jorge Bento Martins Ledo Chartered Accountant: Effective: Deloitte & Associados, SROC S.A., NIPC , Nº 43 da OROC, represented by António Manuel Martins Amaral, ROC nº 1130 Alternate: Paulo Alexandre Rocha Silva Gaspar, ROC nº 1300 Soares da Costa I Report and Accounts I First Half

17 Remuneration Committee: Chairman: João Vieira de Almeida Members: Martim Salema de Sande e Castro Fino João Pessoa e Costa Secretary of the Company: Jorge Manuel de Oliveira Alves Pedro Miguel Tigre Falcão Queirós (alternate) COMPANY S ORGANOGRAM Chairman António Gomes Mota Executive Committee António Castro Henriques (CEO) Gonçalo Andrade Santos (CFO) Jorge Grade Mendes (COO) Corporate Governance Committee General Secretary António Frada Secretary of the Company Jorge Alves Pedro Queirós (Alternate) Management Control and Strategic Planning Auditing and Risk Management Report andtax Legal Office Investor Relations Comunication Conceição Vaz Sousa Sandra Paredes Fernando Semana Jorge Alves Rita Carles Rita Carles Soares da Costa I Report and Accounts I First Half

18 CHANGES IN THE CONSOLIDATION PERIMETER IN THE FIRST HALF OF 2013 Merger by incorporation of the company Construções Metálicas Socometal, S.A. into the company Sociedade de Construções Soares da Costa, S.A. ; Acquisition of 51% of the shares of the Talatona Imobiliária, Lda., with the company now being owned by Soares da Costa Group; Dissolution of the company INR Investimentos Nacionais Rodoviários, SGPS, S.A. that was fully owned by Soares da Costa Concessões, SGPS, S.A. ; Alienation of the full participation of the company Global Azoague, S.L., held by the company Ventos do Horizonte, S.A. ; Alienation of the full participation that the Group held on the Angolan company Carta Restauração e Cantinas, Lda. ; Merger by incorporation of the company Ventos do Horizonte, S.A. into the company Self Energy Engineering & Innovation, S.A. ; Change of the corporate name of the company Linha 3 Cezarina Construções Ltda in which the Soares da Costa Brasil Construções Ltda. has a 50% participation, that is now named Linha 3 Construções Ltda, including in its social object the construction, management, supervision, analysis, projects, planning, consulting and execution of any relevant services related with engineering works in general; Constitution of the company Self-Energy Angola, Lda., an Angolan company, in which the Group has a 49% participation through the company IMOSDC Investimentos Imobiliária. Lda. and having as social object the provision of services targeting the implementation, development and maximization of the renewable energy use and the recourse to innovative solutions as the alternative energies, namely through the provision of integrated solutions and services for energy management that maximize the value of energy resources for conducting energy audits and efficiency consulting and installation of energy equipment; Alienation of the full participation that the Group held in the company MTA - Máquinas e Tractores de Angola, Lda.. Soares da Costa I Report and Accounts I First Half

19 ACQUISITION COST EQUITY METHOD PROPORTIONAL METHOD FULL CONSOLIDATION METHOD PARTICIPATIONS STRUCTURE AND CONSOLIDATION METHODS GRUPO SOARES DA COSTA, SGPS, SA Consolidated Accounts 30 June 2013 Consolidation Perimeter and Methods Grupo Soares da Costa, SGPS, SA SDC Construção,SGPS, SA SDC América, INC 60% Porto Construction Group, LLC 80% SDC Construction Services, LLC Soares da Prince, LLC Costa CS, LLC SDC Contractor, LLC 51% GEC Guiné Ecuatorial Construcciones 80% SDC Moçambique, SARL SDC S. Tomé e Príncipe, Construções, Lda. SDC Construcciones Centro Americanas, SA Coordenação & SDC CARTA, LDA CLEAR, SA 95% CLEAR ANGOLA, LDA 51% CERENNA, SA SDC/Contacto, ACE SANTOLINA Holding B.V. 53,6% 46,4% Soares da Costa Brasil, Ltda. Soc. Construções Soares da Costa, SA SDC Imobiliária, SGPS, SA Mercados Novos, LDA CIAGEST, SA SOARTA, SA HABITOP, SA NAVEGAIA, SA 99% SDC IMOBILIÁRIA, LDA (2) 50,6% HOTTI Angola Hóteis, S.A. 98% COSTA SUL, LDA (7) 98% IMOSEDE, LDA (7) CAIS da FONTINHA, SA 51% IMOKANDANDU, LDA 99% IMOSDC - Investimentos LDA 1% 70% Talatona Imobiliária, Lda. 30% SDC Concessões, SGPS, SA SDC CONCESIONESC.RICA,SA COSTAPARQUES, SA CPE, SA SDC Concessions USA, Inc INTEVIAS, SA 75% Hidroequador S. Tomense 60% Hidroeléctrica STP, Lda. INR Inv. Nac. Rodoviários 75% SDC Hidroenergia, S.A. (6) 0,2% 99,8% SDC Hidroenergia 1T, Lda 0,2% 99,8% SDC Hidroenergia 8C, Lda 0,2% 99,8% SDC Hidroenergia 8T, Lda 0,2% SDC Hidroenergia 4T, Lda 99,8% 99,96% SCSP SDC Serviços Partilhados, SA (3) Energia Própria, S.A. Self Energy Engineering & Innovation, S.A. 57,26% 78,1% Self Energy UK TRANSMETRO, ACE 50% 28,57% GCVC, ACE ASSOC-Estádio de 40% 40% Estádio d Braga, ACE Braga, ACE Estádio Coimbra, ACE 60% 25% Nova Estação, ACE Somague-SDC, ACE 50% 28,57% Matosinhos, ACE Três ponto dois, ACE 50% 50% Teatro Circo, ACE HidroAlqueva, ACE 50% 50% CAET XXI, ACE GCF, ACE 28,57% 17,25% LGV, ACE Israel Metro Builders 30% 30% LGC, ACE NORMETRO, ACE 17,9% 50% SdC e Lena, ACE Terceira Onda, Lda 50% 24% GACE Gondomar, ACE 40% 50% SOMAFEL, SA 45% 50% 60% 95% Alsoma, AEIE 49% SDC Emirates, LLC Traversofer, SARL CFE Indústria de Condutas, S.A. (1) 11,3% VSL, SA 7,24% VORTAL SGPS, SA OFM, SA Construtora S. José Caldera, SA Grupul Portughez de Constructii Construtora - S.José-S.Ramon, SA Linha3 Construções Ltda Somafel e Ferr.,ACE Somafel,Ltda.(Brasil) 17% 17% (1) Clear Instalações Electromecânicas, S.A. holds a 33.33% stake. (2) Ciagest, SA holds 1% in the share capital of SDC Imobiliária, Lda. 5% 50% 49% Self-Energy Angola, LDA SCUTVIAS, SA 33,33% 33,33% 0,002% MRN Man. Rod.Nacionais 33,33% 0,002% Portvias, S.A. (9) 46% Auto-estradas XXI, S.A. (4) 98% Indáqua V. do Conde, S.A. (10) 0,5% 93% Indáqua Feira, S.A. (9) 20% MTS, LDA (3) Sociedade de Construções Soares da Costa, SA, Ciagest, SA, Clear, SA and SDC Concessões, SGPS each holds 0,01% of the capital of SCSP Soares da Costa Serviços Partilhados, SA. (4) Sociedade de Construções Soares da Costa, S.A. holds a 4% participation the capital of Autoestradas XXI, S.A. e Operestradas XXI, SA.. (5) Sociedade de Construções Soares da Costa, S.A. holds 0,004% of the company Exproestradas XXI, S.A.. (6) SDC Concessões, SGPS and Hidroequador Santomense each hold 0,002% of the capital of SDC Hidroenergia, SA.. (7) Clear Angola, Lda holds 2% of the company Costa Sul, Lda. and Imosede, Lda.. (8) Soares da Costa Concessões, SGPS holds a % participation and Sociedade de Construções Soares da Costa, S.A. holds 0.002% (9) Grupo Soares da Costa, SGPS, SA holds a 0,5% in de capital of Indáqua Feira, S.A.. (10) Sociedade de Construções Soares da Costa, S.A. holds 0,5% and 0,57% of the capital of Indáqua Matosinhos, S.A. and Indáqua Vila do Conde, S.A., respectively. 46% 50% Operestradas XXI, S.A. (4) Exproestradas XXI, S.A. (5) 40% Oper. Estradas. Zambeze, S.A. 40% Estradas do Zambeze, S.A. 25% GAYAEXPLOR, LDA 28,57% INDÁQUA, SA 0,5% 97,5% Indáqua Matosinhos, S.A. (10) Autopistas del Valle 16,3% Elos OM, S.A. 16,3% Elos, S.A. (8) 17% 50% Ute Efacec/Self Energy 45% Self Energy Moçambique 49,5% Larvick Espanha Sustentável, Desafio Lda. 35% 10% Roof Tops of Spain, S.A. Soares da Costa I Report and Accounts I First Half

20 3. CORPORATE SOCIAL RESPONSABILITY Social responsibility initiatives are an important part of Soares da Costa Group s corporate profile, in particular the ones that are related with the internal social responsibility (initiatives targeting employees and their families) without, however, forgetting the social responsibility activities targeting the external communities in the regions where we operate. In the first half of 2013 we have implemented initiatives such as the Technical Workshop, the annual event for sharing knowledge and experiences between professionals and employees of the several companies of the Group. This year, in line with one of the strategic plan guidance, emphasis was given to internationalization. In 2013 s was the fourth edition of the Technical Workshop and were presented issues related to projects that the company is developing (or has developed) in Portugal, Angola, Mozambique and Brazil. On the environmental side, a note to the 2013 s Environmental Campaign held throughout June and focusing on four distinct themes: electricity consumption, waste, water consumption and fuel consumption associated with the Group s car fleet. Also under this topic, once again, the Group teamed up to the ECO Movement Industry against Fires, an initiative to protect the forest heritage in Portugal, to which we are associated since Regarding the topic Education, it began in this first half, in Angola, the first internship program, designed to welcome and train new graduates in the fields of civil engineering, mechanical engineering, administrative, financial and human resources. Of the more than thirty applications received, seven were selected, with stages taking place since the beginning of May, and with an expected life of six months. Like the similar program implemented in Portugal, this time will be distributed by various areas of the company, so that the young trainees could have the opportunity to know the several departments that support the production area. With this program, Soares da Costa opens its doors to the local academic community and invests in training young local employees. On the other hand, in a partnership with program BEST/ Inside View, from Instituto Superior Técnico, we received in our working units (construction works and offices) students in their final year of civil engineering, environmental engineering or architecture, which accompanied the company s professionals throughout a workday, in order to receive practical training to complement their academic training. Beyond these initiatives, we continue to develop campaigns to collect various materials under the Ecoponto Solidário (Solidarity Ecobox), and in the first half three campaigns took place, namely collecting used shoes (in partnership with the national campaign developed by BotaMinuto), collecting plastic caps (to the Centro Social de Gião in Santa Maria da Feira) and paper (in favour of the campaign the Banco Alimentar contra a Fome named "Paper for Food"). As an example of other activities performed, in order to obtain favourable terms for the Group's employees and their families, in the first half we held four new protocols in the health, leisure and well-being and services areas, and the upgrade of two existing protocols in the telecommunications and financial services areas. Continuing the collaboration with Legião da Boa Vontade, six volunteers participated in two Rondas de Caridade (Charity Rounds) in Oporto, contributing to the confection of food, preparation of kits and their distribution to the homeless of the city. By the end of the year, the Group will implement and/ or continue the implementation of activities as the Scholarships Annual Program, more campaigns of Ecoponto Solidário (Solidarity Ecobox), among other initiatives. Soares da Costa I Report and Accounts I First Half

21 4. MAIN RISKS AND UNCERTANTIES Soares da Costa Group, as the various parts that comprise this Report and Accounts attest, carries out its activity in various business segments and in various geographical areas. In this context the Group is naturally exposed to several risks. From an organizational perspective, and at the corporate centre, with transversal application throughout the Group, there is a an Analysis and Risk Management unit was set up with the objective of guaranteeing the efficiency and effectiveness of the Group s operations, the safeguarding of its assets, the reliability of the financial data and the compliance with the law and applicable norms. The Analysis and Risk Management unit has goal to support management through the identification and monitoring of the main risk to which the Group is exposed, to guarantee its control and mitigation, therefore allowing the inclusion of a risk dimension on the strategic and operational decisions of the Group. The risk analysis is undertaken by the various corporative units of the Group. Work is carried out to identify and prioritize up-front the risks classified as more critical (determined through the combination of the probability of occurrence with the potential impact) and Risk Management strategies are defined so as to implement the control procedures that will reduce these to an acceptable level. This way the Group has been implementing control activities that permit the mitigation of these risks. The objective is to maximize the trade-off between the risks and the business margins so as to attain, in a sustained manner, the strategic objectives. This matrix is based on the general lines of the strategic plan in force, the goals that are to be met, the type of activity carried out and the countries that constitute the preferred areas for a stable intervention. Subsequently, and in obedience to these guidelines, a set of parameters are defined that guide the strategic objectives covering the assumption of risk and all the monitoring actions carried out to guarantee the conformity of the risks actually incurred with those objectives. To perform the assessment and subsequent monitoring, through their internal organizations, the different management areas of the company (Business Development, Finance Management, Management Control, Human Resources, Legal Services, etc.) identify and evaluate the risks that their decisions, in their respective areas of intervention and competence, involve and list the measures that may prevent or minimize these. In function of that analysis, critically monitored by the central unit, decisions are taken relating to the business, country or project in question, namely the decision to contract or not to contract or of the contracting conditions. The analysis and management system is an interactive process that extends throughout all the phases of the project, from the original potential set-up, at a moment of pure prospecting, right through to its epilogue, when all the responsibilities connected to it are extinguished. Naturally, during its evolution, some fundamental milestones requiring a wider scope in terms of decision making are set-up, both to evaluate if the potential risks and the forms in which best to broach these fit the strategic profile defined, as well as to ensure that the control mechanisms and procedures are being complied with and are proving to be adequate. For their thorough management, detailed information procedures are created, with the content adequate to each phase, which will permit the timely monitoring of the various vicissitudes and the taking of action at the exact moment of an occurrence. The full process is open to contributions from reviews and to the improvements that any structure wishes to propose, and is the object of periodic reflection and evaluation involving both the supporting services as well as the operational areas. The main risks that could adversely affect the Group's strategic objectives are defined as follows: Soares da Costa I Report and Accounts I First Half

22 ECONOMIC ENVIROMENT The construction sector in Portugal has been experiencing a sharp downturn in production levels and investment. Degradation of demand (public and private) and the difficulties in obtaining bank loans are the main constraints of the sector. The outlook does not point to a recovery in the short term. Potential Risks: Difficulties in maintaining a geographically balanced portfolio of works. Difficulties in obtaining credit to proceed with new projects. Difficulties in receiving from customers/ clients, including public entities whose average collection period is increasingly dilated. Delays in project s execution, need to search for alternative sources of supply in the market and/ or charging of penalties for breaches of contract resulting from failures in services provided by suppliers and subcontractors, mainly due to financial difficulties and/ or breach of payment terms. Measures adopted by the Group: The lack of projects in the domestic market is offset by the Group through the constant demand for increased activity in key markets abroad, so that the negative effect is compensated. The Group seeks to develop its activity in different markets in order to spread risk and avoid excessive dependency of a single market. The Group seeks to distinguish itself by providing a service of excellence, proven by extensive experience recognized in the market, seeking in this way to build customer loyalty, ensuring a relationship that understands and responds to your needs, focusing on the costeffectiveness of the proposals, contributing to high quality standards in the construction sector. Group studies and analyses the financial capacity and track record of the customers when deciding to accept or not a project, adapting the strategy of doing the work profile of the client. During project implementation is carried out periodic monitoring of compliance with the financial responsibility of the customer. The Group seeks to build lasting relationships with subcontractors with whom it has a price-quality acceptable relationship. The Group has contingency plans to respond immediately to any defaults. Additionally, the Group has guarantees and retention of payments as a ways to mitigate the impact of any failure / insolvency. LAWS AND REGULATIONS The Group operates in various markets and their activities are subject to different legal and regulatory requirements that are complex and demanding. Potential Risks: The breach of a law or regulation may trigger lawsuits against the Group that may result in increased costs to the organization, damage to the image and/ or reputation and degradation of business. Measures adopted by the Group: The Group monitors and studies the new laws and regulations that are issued to the markets where it operates, in order to anticipate the impacts that they can have on the organization and adopt the necessary mechanisms to ensure compliance. Any decision taken by the Group considerers the legal and regulatory framework applicable to market analysis. Soares da Costa I Report and Accounts I First Half

23 CONDUCT & ETHICAL The Group operates in partnership with other companies and relates to various entities (suppliers, customers, subcontractors,...). The Group is exposed to risks that may result from the implementation of actions and behaviours less regular, discriminatory or even unethical by some business partners. Potential Risks: Exposure to situations of breaches of codes of ethics and conduct stipulated by the Group and unethical behaviour by partners that may result in financial loss, loss of customers and irreversible damage to the image and reputation of the Group. Measures adopted by the Group: The Group has a code of ethics and conduct circulated throughout the organization and shared by all employees. Management unit and the internal audit check and monitor compliance with the standards, rules and codes of ethics and conduct. Group studies and analyses the behaviour and history of action of potential partners before establishing the partnership. HUMAN RESOURCES The Group's success depends on its ability to retain and/ or recruit the best people with the best skills and behaviours. Potential Risks: The failure in the recruitment/ retention of talent within the organization can result in a reduction of the Group's ability to respond in the most appropriate and best suited form to the present and future business opportunities. Measures adopted by the Group: The Group maintains appropriate remuneration policies to attract and retain key employees. Organization exists in a system of performance assessment that enables simultaneously define the right employees for the right jobs and motivate employees through recognition and career development perspective. The Group ensures that the exit/ replacement of employees are controlled so as to maintain knowledge in the organization. The Group has policies to encourage training, supporting their employees in active participation in training activities and appropriate courses to the role and position they hold, giving them a greater ability to respond to unforeseen situations. Soares da Costa I Report and Accounts I First Half

24 PROPOSALS/ EXECUTION OF PROJECTS Every year the Group presents proposals to a large number of tenders. The Group carries out projects of high complexity in terms of engineering, architecture and construction. The success of the project depends on the combination of the accuracy of budgets, implementation capacity, the ability to meet deadlines, experience and contract management. Partnerships are established when the Group considers that the quality of the proposal to be presented benefits in terms of knowledge and/ or experience. Potential Risks: In case of a negative delivery/ performance of the partner, disagreement or insolvency of a partner, the Group may be exposed to financial losses and damage to image and/ or reputation. The proposals / budgets unadjusted of the risk inherent to the project may lead to significant sunk costs for the Group. The failure of the project requirements and/ or deadlines agreed with the customer can result in significant financial losses and damage to the image and reputation of the Group. Measures adopted by the Group: One of the requirements for risk analysis to be completed during the go/ no go, bid/ bid and sign/ no sign is the rigorous evaluation of the partner analysis, particularly regarding the history of defaults, financial strength, reputation, experience, resources and knowledge. The partnership is followed and monitored throughout the implementation phase of the project. The existing analysis and risk management system in Group is an interactive process, which runs through all phases of a project, from its potential, in a moment of pure exploration, to date of completion of its execution. The Group has detailed information procedures, with contents appropriated to each phase, which will make the timely monitoring of various events and act upon events. For each potential risk, the Group defines a set of monitoring and mitigation measures to prevent its occurrence and/ or to minimize its impact. During the implementation phase of the projects, potential risks are identified, thoroughly revised, monitored and controlled. SECURITY AND SUSTAINABILITY The Group is involved in complex projects that require constant monitoring of the risks associated with the Environment, Health and Safety at Work and the impacts of local populations. Potential Risks: Incurring such risks could expose the Company to liabilities/ costs arising from the breach of legal obligations, including high financial costs and damage to reputation and image. Measures adopted by the Group: The Group has strict detailed policies and procedures and with regard to environment, safety and hygiene at work that minimize the likelihood of such risks, as well as certification in these areas. The Group has a sustainability policy whose mission is to meet the real needs of the market and its customers, through a sustainable business model, qualified and motivated resources, value-generating economic, social and environmental. The objective of capital risk management at Soares da Costa Group is to safeguard the continuity of the operations of the Group, thus providing returns for the shareholders and benefits for the remaining stakeholders, maintaining a solid capital structure that supports the development of the business. The Group has reinforced its risk analysis policies in order to be better prepared to respond to the uncertainties and vicissitudes that derive from adapting its activity to the retraction in the domestic market, and is actively searching for alternatives that boost its capacities. Soares da Costa I Report and Accounts I First Half

25 5. PARTICIPATIONS AND TRANSACTION OF MEMBERS OF THE CORPORATE BODIES (according to Article 9a) and 14 no. 7 of Regulation 5/2008 of the CMVM) - José Manuel Baptista Fino (member of the board of directors): Member of the board of directors of Investifino SGPS Limited. This company held by January 1, 2013, 113,302,682 shares that correspond to % of the capital, unchanged to June 30, António Pereira da Silva Neves (chairman of the supervisory board): By January 1, 2013 held 13,220 shares, unchanged to June 30, The other members of the corporate bodies did not hold, as of June 30, 2013, shares of the company, and did not traded any shares of the company during the first half of QUALIFIED SHAREHOLDINGS As of June 30, 2013, the qualified shareholdings were the following: Manuel Fino, SGPS, S.A. Number of shares % Capital % Voting rights (1) Indirectly through Investifino SGPS, 113,302, % % Limited Total 113,302, % % PARINAMA Participações e Number of shares % Capital % Voting rights (1) Investimentos, SGPS, S.A. Directly 17, % % Total (2) 17,600, % % (1) Considers 5,518 preferred non-voting shares. (2) Imputable to Ana Maria Martins Caetano. 7. STATEMENT ON THE CONFORMITY OF THE FINANCIAL INFORMATION In terms of paragraph c) of no. 1 of article 246 of the Securities Code, the members of the board of directors declare that to the best of their knowledge: a) The consolidated financial statements, of the first half were prepared in conformity with the accounting standards applicable, presenting a true and fair view of the assets and liabilities, of the financial situation and results of Grupo Soares da Costa, SGPS, SA and the companies included in its consolidation perimeter; b) The management report accurately discloses the evolution of the business, the performance and the financial position both of the issuer and of the companies included in the consolidation perimeter and contains a description of the principal risks and uncertainties faced. Porto, August 13, 2013 The board of directors, António Sarmento Gomes Mota, António Manuel Pereira Caldas Castro Henriques, Pedro Gonçalo de Sotto-Mayor de Andrade Santos, Jorge Domingues Grade Mendes, José Manuel Baptista Fino, Jorge Armindo de Carvalho Teixeira, Manuel Fernando de Macedo Alves Monteiro Soares da Costa I Report and Accounts I First Half

26 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL POSITION STATEMENT June 30, 2013 and December 31, 2012 (Euro) A S S E T S Notes NON CURRENT Intangible assets: Goodwill 11 and 12 84,107,745 84,025,172 Intangible assets 11 and ,800, ,370, ,908, ,395,972 Fixed tangible assets: Land and buildings ,143, ,685,835 Basic equipment 12 52,684,950 57,899,231 Other fixed tangible assets 12 12,743,658 14,478,790 Fixed tangible assets in progress 12 13,474,493 14,497, ,047, ,561,048 Investment properties 10 and 13 17,195,366 13,350,946 Financial investments: 10 and 13 11,216,581 11,246,193 Financial investments under the equity method 10 and 13 18,552,887 15,099,362 Loans to associated companies 13 6,223,437 6,047,352 Other financial investments 10 35,992,905 32,392,908 Deferred taxes (assets) 10 and 25 60,904,901 63,317,422 Accounts receivable 10 and ,992, ,239,015 Other non current assets 10 and 16 8,550,000 7,125,000 Total non current assets 1,047,591,490 1,028,382,310 CURRENT Inventories 10, 14 and 23 83,977,747 89,406,053 Accounts receivable: Trade Debtors 15 and ,501, ,377,777 Income tax 1,079,957 1,195,947 Other accounts receivable 15 and 23 41,697,447 49,452, ,278, ,025,810 Other current assets 10 and ,842, ,747,235 Cash, Deposits and Securities 10 and ,866, ,464,321 Total current assets 779,966, ,643,419 TOTAL ASSETS 10 1,827,557,669 1,792,025,729 Soares da Costa I Report and Accounts I First Half

27 CONSOLIDATED FINANCIAL POSITION STATEMENT June 30, 2013 and December 31, 2012 (Euro) SHAREHOLDERS EQUITY AND LIABILITIES Notes SHAREHOLDERS' EQUITY Share capital ,000, ,000,000 Own shares 18 - (172,526) Reserves and retained earnings 18 (95,601,285) (62,014,214) Net income 10 (9,237,635) (46,881,180) Equity attributable to the Group 55,161,080 50,932,080 Minorities 1,536,227 2,276,539 TOTAL SHAREHOLDERS' EQUITY 56,697,307 53,208,618 NON CURRENT Provisions , ,854 Loans: Bonds 19 98,048,402 97,818,453 Bank loans ,445, ,797,903 Other loans 19 14,500, ,994, ,616,355 Accounts payable 21 42,411,569 43,233,002 Derivatives 20 49,742,534 66,968,851 Deferred assets (liabilities) 25 25,241,945 25,884,029 CURRENT Loans: Total non current liabilities 1,023,154,814 1,024,579,090 Bank loans ,135, ,422,060 Other loans 19 1,170, ,901 Accounts payable: 252,306, ,313,961 Trade Creditors 187,609, ,021,746 Fixed assets suppliers 2,229,763 2,698,305 Advances on sales 57,891,573 64,941,600 Income tax 10,409,553 10,251,245 Other accounts payable 21 72,279,509 65,814, ,419, ,727,035 Derivatives 20 15,546,371 16,536,361 Other current liabilities ,433, ,660,663 Total current liabilities 747,705, ,238,020 TOTAL LIABILITIES 10 1,770,860,362 1,738,817,110 TOTAL SHAREHOLDERS' EQUITY + LIABILITIES 1,827,557,669 1,792,025,729 SEPARATE CONSOLIDATED INCOME STATEMENT for the period ended June 30, 2013 and 2012 Soares da Costa I Report and Accounts I First Half

28 INCOME STATEMENT Notes restated (Euro) Turnover ,924, ,502, ,029,248 Change in production (14,615,052) (3,516) (3,516) Other operating income 4,395,940 5,031,501 5,031,501 Operating income 305,705, ,530, ,057,233 Cost of goods sold (56,722,725) (78,249,490) (78,249,490) Third party supplies & services (141,183,964) (222,760,091) (222,760,091) Staff costs (64,802,267) (76,560,359) (76,560,359) Depreciation and imparity losses 10 (16,585,398) (17,211,418) (11,632,122) Provisions 10 (270,235) (9,181,051) (9,181,051) Other operating costs (9,309,004) (16,143,682) (16,143,682) Operating costs (288,873,594) (420,106,090) (414,526,794) Operating results from continued activities 10 16,831,844 13,423,918 1,530,439 Interest received 10 and 24 12,843,235 10,718,394 18,407,198 Interest paid 10 and 24 (33,112,396) (34,204,114) (34,204,114) Net financing costs (20,269,161) (23,485,720) (15,796,917) Gains in associated companies 24-99,183 99,183 Losses in associated companies 24 (98,741) (21,821) (21,821) Gains and losses in associated companies 10 (98,741) 77,362 77,362 Income and capital gains in participations held 24 3,297, , ,015 Other financial income 24 5,691,129 11,467,835 11,467,835 Other financial costs 24 (12,715,410) (18,027,779) (18,027,779) Other financial income & costs 10 (3,726,300) (6,361,929) (6,361,929) Financial results 10 and 24 (24,094,203) (29,770,286) (22,081,483) Earnings before taxes (7,262,358) (16,346,368) (20,551,044) Income tax 10 and 25 (2,003,207) 2,209,957 3,368,615 Net earnings 10 (9,265,565) (14,136,411) (17,182,429) Attributable to the Group 10 (9,237,635) (13,950,912) (16,996,929) Minorities 10 (27,931) (185,500) (185,500) Earnings per share of continued activities: 26 Basic (0.058) (0.087) (0.107) Diluted (0.058) (0.087) (0.107) Earnings per share: 26 Basic (0.058) (0.087) (0.107) Diluted (0.058) (0.087) (0.107) SEPARATE CONSOLIDATED INCOME STATEMENT for the quarters April 1 to June 30, 2013 and 2012 (Euro) Soares da Costa I Report and Accounts I First Half

29 2nd Quarter nd Quarter 2012 restated 2nd Quarter 2012 Turnover 153,147, ,780, ,082,047 Change in production 451,849 (1,952,226) (1,952,226) Other operating income 1,328,889 2,719,262 2,719,262 Operating income 154,928, ,547, ,849,083 Cost of goods sold (31,047,774) (40,832,959) (40,832,959) Third party supplies & services (68,579,607) (120,268,970) (120,268,970) Staff costs (32,475,089) (35,729,891) (35,729,891) Depreciation and imparity losses (8,201,759) (8,568,138) (5,778,490) Provisions 88,348 (9,082,402) (9,082,402) Other operating costs (5,665,312) (12,700,081) (12,700,081) Operating costs (145,881,192) (227,182,442) (224,392,794) Operating results from continued activities 9,047,519 3,364,685 (2,543,711) Interest received 7,173,138 4,927,389 8,774,958 Interest paid (15,880,351) (16,989,198) (16,989,198) Net financing costs (8,707,213) (12,061,809) (8,214,240) Gains in associated companies (102,251) 98,690 98,690 Losses in associated companies (71,222) 5,972 5,972 Gains and losses in associated companies (173,474) 104, ,662 Income and capital gains in participations held 1,148, Other financial income (1,252,720) 10,339,267 10,339,267 Other financial costs (4,577,927) (9,494,073) (9,494,073) Other financial income & costs (4,682,011) 845, ,194 Financial results (13,562,698) (11,111,953) (7,264,384) Earnings before taxes (4,515,178) (7,747,267) (9,808,095) Income tax (2,862,547) 258, ,348 Net earnings (7,377,726) (7,488,807) (8,981,747) Attributable to the Group (7,261,864) (7,323,541) (8,816,481) Minorities (115,862) (165,266) (165,266) Earnings per share (0.045) (0.046) (0.055) Soares da Costa I Report and Accounts I First Half

30 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME for the period ended June 30, 2013 and 2012 Notes restated (Euro) Consolidated net profit for the period 10 (9,265,565) (14,136,412) (17,182,429) Other comprehensive income Exchange difference stemming from transposition of financial statements expressed in foreign currencies 84,640 (534,755) (534,755) Change on fair value of derivatives 18 18,216,306 (11,279,488) (11,279,488) Change on deferred taxes of derivatives 18 (4,865,914) 2,969,668 2,969,668 Adjustments in investment consolidated by equity method 432 (1,085) (1,085) Other changes (14,208) - - Total comprehensive income for the period 4,155,692 (22,982,072) (26,028,089) Attributable: to minorities (13,875) (600,580) (600,580) to the Group 4,169,566 (22,381,492) (25,427,509) STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME for the quarters April 1 to June 30, 2013 and 2012 (Euro) 2 nd Quarter 2 nd Quarter 2 nd Quarter restated 2012 Consolidated net profit for the period (7,377,725) (7,488,807) (8,981,747) Other comprehensive income Exchange difference stemming from transposition of financial statements expressed in foreign currencies (1,149,037) 1,098,382 1,098,382 Change on fair value of derivatives 14,508,647 (8,898,825) (8,898,825) Change on deferred taxes of derivatives (3,859,322) 2,351,519 2,351,519 Adjustments in investment consolidated by equity method 40 2,029 2,029 Other changes Total comprehensive income for the period 2,122,603 (12,935,703) (14,428,642) Attributable: to minorities (146,438) (504,696) (504,696) to the Group 2,269,041 (12,431,007) (13,923,946) Soares da Costa I Report and Accounts I First Half

31 STATEMENT OF CHANGES IN EQUITY For the period ended June 30, 2013 and 2012 Notes Equity capital Own shares Reserves and retained earnings Reserves for foreign exchange Hedging derivatives Other Equity attributable to shareholders Minorities (Euro) Total equity Balance as of ,000,000 (172,526) (54,644,827) (1,887,152) (52,598,724) 235,308 50,932,079 2,276,539 53,208,618 Dividends Own shares 18-72,526 (91,359) ,167-81,167 Other - - (71,039) 49, (21,733) (726,437) (748,170) Integrated consolidated earnings (9,237,635) 70,585 13,350,392 (13,776) 4,169,566 (13,875) 4,155,692 Balance as of ,000,000 - (64,044,860) (1,767,261) (39,248,331) 221,532 55,161,079 1,536,228 56,697,307 Equity capital Own shares Reserves and retained earnings Reserves for foreign exchange Hedging derivatives Other Equity attributable to shareholders Minorities Total equity Balance as of ,000,000 (172,526) (7,751,481) (728,190) (40,239,801) 1,274, ,382,640 4,139, ,522,492 Dividends - - (276) (276) - (276) Own shares Other Integrated consolidated earnings - - (13,950,912) (119,675) (8,309,820) (1,085) (22,381,492) (600,580) (22,982,072) Balance as of restated 160,000,000 (172,526) (21,702,669) (847,865) (48,549,621) 1,273,553 90,000,873 3,539,272 93,540,144 Soares da Costa I Report and Accounts I First Half

32 CONSOLIDATED CASH FLOWS STATEMENTS for the period ended June 30, 2013 and 2012 (Euro) nd Quarter 2013 Operating activities: Receipts from customers 266,655, ,776, ,488,904 Payments to suppliers (181,539,600) (296,719,160) (95,532,468) Payments to staff (55,646,388) (63,611,548) (26,675,332) 29,469,055 (17,554,569) 5,281,104 Payments/ receipts of income tax (5,835,163) (5,123,899) (5,629,697) Other payments/ receipts related with oper.activities (16,393,595) (10,160,248) (1,938,255) (22,228,758) (15,284,146) (7,567,952) Cash flow from operational activities 7,240,297 (32,838,715) (2,286,848) Investment activities: Receipts from: Financial investments 3,630, ,250 3,030,264 Fixed tangible assets 562,700 3,352, ,926 Interest and similar income 323, , ,986 Dividends 2,388,188 6,904,722 66,600 4,355,692 2,388,188 6,220,364 Payments related with: Financial investments 6,651, ,692 1,281,964 Fixed tangible assets 1,586,684 1,658,213 1,023,726 Intangible assets - 8,238,077-2,142,905-2,305,690 Cash flow from investment activities (1,333,355) 2,212,788 3,914,675 Financing activities: Receipts from: Loans 411,184, ,610, ,451,581 Capital increases, supplementary payments and issue premiums 81,167-81,167 Interest received 344, ,610, , ,160, , ,639,401 Payments related with: Loans 384,966, ,773, ,803,995 Amortisations of financial leasing contracts 1,228,936 1,637, ,923 Interest paid 30,447,941 26,783,795 22,850,335 Dividends - 583,526 - Acquisition of own shares ,643, ,777, ,065,253 Cash flow from financing activities (5,033,250) 56,382,769 (12,425,852) Change in cash and cash equivalents 873,692 25,756,841 (10,798,025) Effect of foreign exchange differences (1,292,729) 1,841,840 (2,285,695) Effect of changes in participations (178,388) - (538,389) Cash and cash equivalents at the beginning of the period 101,464,321 86,098, ,489,006 Cash and cash equivalents at the end of the period 100,866, ,697, ,866,896 Soares da Costa I Report and Accounts I First Half

33 Annex to the Consolidated Cash Flows Statements Acquisition, subscription, capital increase and changes to participations Receipt by cash and equivalents of 1,128,382 Euros from the alienation of the Group s participation in the company Carta-Restauração e Serviços S.A. ; Receipt by cash and equivalents of 401,800 Euros from the alienation of the Group s participation in the company Global Azoague, S.L. ; Receipt by cash and equivalents of 210,316 Euros from the alienation of the Group s participation in the company MTA- Máquinas e Tractores de Angola, Lda. ; Receipt by cash and equivalents of 1,889,947 Euros from the devolution of the extraordinary capital injections in the company Autopistas Del Valle, S.A. ; Payment by cash and equivalents of 4,398,000 Euros of a capital injection in the company Metropolitan Transportation Solutions, Ltd. ; Payment by cash and equivalents of 2,156,422 Euros of a supplementary capital injection in the company Elos - Ligações de Alta Velocidade, S.A. ; Payment by cash and equivalents of 54,924 Euros of a capital injection in the company Sustentável Desafio - Produção de Energia, Lda. ; Payment by cash and equivalents of 38,883 Euros of the Group s participation in the company Self Energy Angola, Lda ; Acquisition of 51% participation in the company Talatona Imobiliária, Lda. by 1 Euro, a company that after this acquisition is fully owned by the Group. The inclusion date of Talatona Imobiliária, Lda. at the consolidation perimeter by the full consolidation method was January 1, By that date, the fair value of the assets and liabilities of the company, weighted by the participation acquired by the Group was as follows: Assets Non current Investment properties 3,725,464 Deferred tax assets 762,001 4,487,465 Liabilities Current Current Stocks 11,625,953 Bank loans 8,123,291 Accounts receivable 10,183,303 Accounts payable 18,358,147 Other current assets 5,668 Other current assets 180,952 Cash and equivalents 360,001 26,662,391 22,174,925 Total 26,662,391 Total 26,662,391 Soares da Costa I Report and Accounts I First Half

34 Breakdown of cash and equivalents Cash 744, ,107 Bank deposits (immediately available) 99,961, ,055,330 Cash equivalents 160, ,884 Cash and equivalents 100,866, ,464,321 Securities - - Cash in Consolidated Financial Position Statement 100,866, ,464,321 Other operations Receipt by cash and equivalents of 2,288,188 Euros of dividends distributed by the company Autopistas Del Valle, S.A. to the company SDC Concessiones Costa Rica ; Receipts and payments related with loans from financing activities include successive liquidation and new issues of commercial paper, in the amount of 192,000,000 Euros. Soares da Costa I Report and Accounts I First Half

35 ACQUISITION COST EQUITY METHOD PROPORTIONAL METHOD FULL CONSOLIDATION METHOD GRUPO SOARES DA COSTA, SGPS, SA Consolidated Accounts 30 June 2013 Consolidation Perimeter and Methods Grupo Soares da Costa, SGPS, SA SDC Construção,SGPS, SA SDC América, INC 60% Porto Construction Group, LLC 80% SDC Construction Services, LLC Soares da Prince, LLC Costa CS, LLC SDC Contractor, LLC 51% GEC Guiné Ecuatorial Construcciones 80% SDC Moçambique, SARL SDC S. Tomé e Príncipe, Construções, Lda. SDC Construcciones Centro Americanas, SA Coordenação & SDC CARTA, LDA CLEAR, SA 95% CLEAR ANGOLA, LDA 51% CERENNA, SA SDC/Contacto, ACE SANTOLINA Holding B.V. 53,6% 46,4% Soares da Costa Brasil, Ltda. Soc. Construções Soares da Costa, SA SDC Imobiliária, SGPS, SA Mercados Novos, LDA CIAGEST, SA SOARTA, SA HABITOP, SA NAVEGAIA, SA 99% SDC IMOBILIÁRIA, LDA (2) 50,6% HOTTI Angola Hóteis, S.A. 98% COSTA SUL, LDA (7) 98% IMOSEDE, LDA (7) CAIS da FONTINHA, SA 51% IMOKANDANDU, LDA 99% IMOSDC - Investimentos LDA 1% 70% Talatona Imobiliária, Lda. 30% SDC Concessões, SGPS, SA SDC CONCESIONESC.RICA,SA COSTAPARQUES, SA CPE, SA SDC Concessions USA, Inc INTEVIAS, SA 75% Hidroequador S. Tomense 60% Hidroeléctrica STP, Lda. INR Inv. Nac. Rodoviários 75% SDC Hidroenergia, S.A. (6) 0,2% 99,8% SDC Hidroenergia 1T, Lda 0,2% 99,8% SDC Hidroenergia 8C, Lda 0,2% 99,8% SDC Hidroenergia 8T, Lda 0,2% SDC Hidroenergia 4T, Lda 99,8% 99,96% SCSP SDC Serviços Partilhados, SA (3) Energia Própria, S.A. Self Energy Engineering & Innovation, S.A. 57,26% 78,1% Self Energy UK TRANSMETRO, ACE 50% 28,57% GCVC, ACE ASSOC-Estádio de 40% 40% Estádio d Braga, ACE Braga, ACE Estádio Coimbra, ACE 60% 25% Nova Estação, ACE Somague-SDC, ACE 50% 28,57% Matosinhos, ACE Três ponto dois, ACE 50% 50% Teatro Circo, ACE HidroAlqueva, ACE 50% 50% CAET XXI, ACE GCF, ACE 28,57% 17,25% LGV, ACE Israel Metro Builders 30% 30% LGC, ACE NORMETRO, ACE 17,9% 50% SdC e Lena, ACE Terceira Onda, Lda 50% 24% GACE Gondomar, ACE 40% 50% SOMAFEL, SA 45% 50% 60% 95% Alsoma, AEIE 49% SDC Emirates, LLC Traversofer, SARL CFE Indústria de Condutas, S.A. (1) 11,3% VSL, SA 7,24% VORTAL SGPS, SA OFM, SA Construtora S. José Caldera, SA Grupul Portughez de Constructii Construtora - S.José-S.Ramon, SA Linha3 Construções Ltda Somafel e Ferr.,ACE Somafel,Ltda.(Brasil) 17% 17% (1) Clear Instalações Electromecânicas, S.A. holds a 33.33% stake. (2) Ciagest, SA holds 1% in the share capital of SDC Imobiliária, Lda. 5% 50% 49% Self-Energy Angola, LDA SCUTVIAS, SA 33,33% 33,33% 0,002% MRN Man. Rod.Nacionais 33,33% 0,002% Portvias, S.A. (9) 46% Auto-estradas XXI, S.A. (4) 98% Indáqua V. do Conde, S.A. (10) 0,5% 93% Indáqua Feira, S.A. (9) 20% MTS, LDA (3) Sociedade de Construções Soares da Costa, SA, Ciagest, SA, Clear, SA and SDC Concessões, SGPS each holds 0,01% of the capital of SCSP Soares da Costa Serviços Partilhados, SA. (4) Sociedade de Construções Soares da Costa, S.A. holds a 4% participation the capital of Autoestradas XXI, S.A. e Operestradas XXI, SA.. (5) Sociedade de Construções Soares da Costa, S.A. holds 0,004% of the company Exproestradas XXI, S.A.. (6) SDC Concessões, SGPS and Hidroequador Santomense each hold 0,002% of the capital of SDC Hidroenergia, SA.. (7) Clear Angola, Lda holds 2% of the company Costa Sul, Lda. and Imosede, Lda.. (8) Soares da Costa Concessões, SGPS holds a % participation and Sociedade de Construções Soares da Costa, S.A. holds 0.002% (9) Grupo Soares da Costa, SGPS, SA holds a 0,5% in de capital of Indáqua Feira, S.A.. (10) Sociedade de Construções Soares da Costa, S.A. holds 0,5% and 0,57% of the capital of Indáqua Matosinhos, S.A. and Indáqua Vila do Conde, S.A., respectively. 46% 50% Operestradas XXI, S.A. (4) Exproestradas XXI, S.A. (5) 40% Oper. Estradas. Zambeze, S.A. 40% Estradas do Zambeze, S.A. 25% GAYAEXPLOR, LDA 28,57% INDÁQUA, SA 0,5% 97,5% Indáqua Matosinhos, S.A. (10) Autopistas del Valle 16,3% Elos OM, S.A. 16,3% Elos, S.A. (8) 17% 50% Ute Efacec/Self Energy 45% Self Energy Moçambique 49,5% Larvick Espanha Sustentável, Desafio Lda. 35% 10% Roof Tops of Spain, S.A. Soares da Costa I Report and Accounts I First Half

36 ACCOUNTING POLICIES AND EXPLAINATORY NOTES TO THE CONSOLIDATED ACCOUNTS 1. INTRODUTORY NOTE The company currently named GRUPO SOARES DA COSTA, SGPS, SA ( Company ) was incorporated on 2 June 1944, under the name Soares da Costa, Lda., a limited company that has been changed into a public company by deed of 01 May 1968, also changing its denomination to Sociedade de Construções Soares da Costa, S.A.. As of December 30, 2002, after a Group re-organisation process, the company assumed its current name and changed its mission into the management of shareholdings as an indirect way to develop economic activities". The current share structure of the Group is represented in the annexed diagram. The full list of the companies included in the Group s consolidation perimeter and the consolidation methods applied are detailed in the following notes. In the business areas in which Soares da Costa Group operated there are no seasonality effects. Figures mentioned in the Notes are in Euros, unless otherwise indicated. The financial statements were not audited. 2. PRESENTATION BASIS The interim consolidated financial statements for the six months ended June 30, 2013 were prepared in accordance with the provisions of International Accounting Standard 34 - Interim Financial Reporting. The consolidated financial statements assume the Company s continuity and were compiled from the accounting records of the companies included in consolidation, which were kept according to the accounting principles accepted in Portugal, and adjusted in the consolidation process to ensure that the consolidated financial statements comply with International Standards on Financial Reporting as adopted in the European Union, in force for the financial year starting at 1 January 2005, from which date the Company began applying IAS/IFRS. The first half of 2012 financial statements were restated to replace the accounting of the Beira Interior motorway concession by the intangible asset model, since the requirements that determined the change in method of accounting for this concession to financial asset model disclosed in the first half of 2012 did not materialize. The notes which follow were selected to contribute to understanding the most significant changes of the Group's consolidated financial position and performance against the latest date for annual reporting at December 31, MAIN ACCOUNTING POLICIES The accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those used in the preparation of financial statements for the year ended December 31, ESTIMATES AND ASSUMPTIONS The interim consolidated financial statements include some figures that were estimated, affecting the amounts reported as assets and liabilities, as well as those reported as income and costs for the period reported. All estimates and assumptions made by the board of directors were based on the best information available at the date the financial statements were approved. The company's board of directors believes that the attached consolidated financial statements and subsequent notes are a fair representation of the consolidated financial information. Soares da Costa I Report and Accounts I First Half

37 5. CONVERSION OF THE FINANCIAL STATEMENTS OF FOREIGN ENTITIES The rates used to convert the figures of foreign entities (Group companies, jointly controlled companies or associated companies) to Euros were the following: Exchange rate Average Exchange rate Average H H 2012 US Dollar EUR/USD Mozambican Metical EUR/MZN S. Tomé & Príncipe Dobra EUR/STD 24,500 24,500 24,500 24,500 Angolan Kwanza EUR/AOA Romanian Leu EUR/ROL Israelian Shekel EUR/ILS Brazilian Real EUR/BRL UAE Dirhams EUR/AED British Pound EUR/GBP Central African CFA EUR/CFA FULLY CONSOLIDATED COMPANIES Group companies included in consolidation by the full integration method, their head offices and proportion of share capital held as of June 30, 2013: Company Head offices % Capital Held Direct Indirect Total Grupo Soares da Costa SGPS, S.A. Rua Santos Pousada, nº Porto Holding - - Soares da Costa Serviços Partilhados, S.A. Rua Santos Pousada, nº Porto % % Energia Própria, S.A. Self Energy Uk Energia Própria Self Energy Engineering & Innovation, S.A. Construction Estrada de Talaíde, lote 27, Talaíde S. Domingos de Rana Southbank Technopark, 90 London Road, London, SE1 6LN Rua de Fundões 151 Centro Empresarial e Tecnológico São João da Madeira 57.26% % % 78.10% % % SDC Construção SGPS, S.A. Rua Santos Pousada, nº Porto % % Soares da Costa América, Inc N.W. 12 TH Street, Suite PH3 - Miami - Florida U.S.A % % Porto Construction Group, LLC 7270 N.W. 12 TH Street, Suite #207 - Miami - Florida U.S.A % 60.00% Soares da Costa Construction Services, LLC 751 Park of Comm. Drive, Suite #108 - Boca Raton - Florida U.S.A % 80.00% Soares da Costa CS, LLC 6205 Blue Lagoon Drive, Suite Miami - Florida U.S.A % 80.00% Soares da Costa Contractor, LLC 7270 N.W. 12 TH Street, Suite PH3 - Miami - Florida U.S.A % % Soares da Costa Moçambique, SARL Av. Ho Chi Min nº 1178, Maputo Mozambique % 80.00% Soares da Costa S. Tomé e Principe - Construções, Lda S. Tomé and Príncipe % % Soares da Costa I Report and Accounts I First Half

38 Company Soares da Costa Construcciones Centro Americanas, S.A. Head offices % Capital Held Direct Indirect Total Cantón Cero Uno - S. José Costa Rica % % Carta - Cantinas e Restauração, Lda Rua Santos Pousada, nº Porto % % Soc. Construções Soares da Costa, S.A. Rua Santos Pousada, nº Porto % % Soares da Costa Brasil - Construções, Ltda. Rua Bandeira Paulista, nº 600, 1º Andar, Conjunto 13, CEP , São Paulo, % % Brazil Santolina Holding B.V. De Lairessestraat 154, 1075HL Amsterdam % % CERENNA - Cerâmica Nacional de Angola, S.A. Soares da Costa/Contacto - Modernização de Escolas, ACE GEC - Guinea Ecuatorial Construcciones, S.A. Município da Ingombota, Bairro Ingombota, Rua Cónego Manuel Alves das Neves, Nº 19 - Luanda % 51.00% Rua Santos Pousada, nº Porto % % Urbanización Villa Orquídea, vivenda nº 4, Carretera del Aeropuerto, Malabo, Guinea Equatorial % 51.00% CLEAR - Instalações Electromecânicas, S.A. Rua Santos Pousada, nº Porto % % CLEAR Angola, Lda. Coordenação & Soares da Costa, SGPS, Lda. Prince Contracting, LLC Real Estate Rua Cónego Manuel das Neves, 874 Luanda - Angola Rua Julieta Ferrão, nº 12, 13º Andar, N. Senhora de Fátima Lisboa Highland Manor Dr - Suite 110, Tampa, Florida U.S % 95.00% % % % % Soares da Costa Imobiliária, SGPS, S.A. Rua Santos Pousada, nº Porto % % CIAGEST - Imobiliária e Gestão, S.A. Rua Santos Pousada, nº Porto % % Mercados Novos - Imóveis Comerciais, Lda. Rua Santos Pousada, nº Porto % % SOARTA - Soc Imob. Soares da Costa, S.A. Rua Santos Pousada, nº Porto % % HABITOP - Sociedade Imobiliária, S.A. Rua Santos Pousada, nº Porto % % Soares da Costa Imobiliária, Lda. Cais da Fontinha - Investimentos Imobiliários, S.A. IMOKANDANDU - Promoção Imobiliária, Lda. Estrada Farol das Lagostas Município da Sambízanga, C. do N'Golakiluange - Luanda % % Rua Santos Pousada, nº Porto % % Estrada Farol das Lagostas, Município do Sambízanga, Comuna do N'Gola Kiluange - Angola % 51.00% NAVEGAIA - Instalações Industriais, S.A. Rua Santos Pousada, nº Porto % % IMOSEDE, Lda Costa Sul Sociedade de Promoção Imobiliária, Lda Hotti - Angola Hoteis, S.A. Rua Conego Manuel das Neves Casa nº 19 - Luanda Rua Conego Manuel das Neves Casa nº 19 - Luanda Município da Ingombota, Bairro Patrice Lumumba, Rua Cônego M. das Neves, nº Luanda % % % % % 50.60% IMOSDC - Investimentos, Lda Rua Cónego Manuel das Neves, 19 Luanda % % Talatona Imobiliária, Lda Rua Cónego Manuel das Neves, 19 Luanda - Angola % % Soares da Costa I Report and Accounts I First Half

39 Company Concessions Head offices % Capital Held Direct Indirect Total Soares da Costa Concessões, SGPS, S.A. Rua Santos Pousada, nº Porto % % Soares da Costa Concesiones - Costa Rica, S.A. 100 Est,200 Sul, 50 Oest - H. de La Mujer - San José - Costa Rica % % COSTAPARQUES - Estacionamentos, S.A. Rua Santos Pousada, nº Porto % % C.P.E. - Companhia de Parque de Estacionamento, S.A. Rua Julieta Ferrão, nº 12, 14º 1649 Lisboa % % Intevias - Serviços e Gestão, S.A. Rua Santos Pousada, nº Porto % % Hidroequador Santomense - Exploração de Centrais Hidroeléctricas, Lda. Hidroeléctrica STP, Limitada Av. Repatriamento dos Poveiros, nº 67, Edifício Cecominsa, Póvoa de Varzim Avenida Água Grande, São Tomé - S. Tomé and Príncipe % 75.00% % 45.00% Soares da Costa Hidroenergia, S.A. Rua Santos Pousada, nº Porto % 75.00% Soares da Costa Hidroenergia 1T, Lda. Rua Santos Pousada, nº Porto % 75.05% Soares da Costa Hidroenergia 4T, Lda. Rua Santos Pousada, nº Porto % 75.05% Soares da Costa Hidroenergia 8C, Lda. Rua Santos Pousada, nº Porto % 75.05% Soares da Costa Hidroenergia 8T, Lda. Rua Santos Pousada, nº Porto % 75.05% Soares da Costa Concessions USA, Inc NW 12 Street, Suite 860, Miami, Florida US % % During the first half of 2013 the following changes occurred in companies that integrate the consolidation perimeter by the full consolidation method: Merger by absorption of the company Construções Metálicas Socometal, S.A. by the company Sociedade de Construções Soares da Costa, S.A. ; Acquisition of a 51% participation of Talatona Imobiliária, Lda., a company that is now fully owned by Soares da Costa Group; Dissolution of the company INR Investimentos Nacionais Rodoviários, SGPS, S.A. fully held by Soares da Costa Concessões, SGPS, S.A. ; Alienation of the participation that the Group held in the Angolan company Carta Restauração e Cantinas, Lda. ; Merger by absorption of the company Ventos do Horizonte, S.A. by the company Self Energy Engineering & Innovation, S.A.. 7. JOINTLY CONTROLLED COMPANIES Jointly controlled companies included in the consolidation by the proportional method, their registered offices and the proportion of capital held as of June 30, 2013: Company Head offices % Capital Held Direct Indirect Total Construction TRANSMETRO - Construção do Metropolitano do Porto, ACE Normetro - Agrupamento do Metropolitano do Porto, ACE ASSOC - Soares da Costa - Construção do Estádio de Braga, ACE Rua Santos Pousada, nº Porto % 50.00% Rua Santos Pousada, 300-7º Bonfim Porto % 17.90% Av. Imaculada Conceição, Dume Braga % 40.00% Soares da Costa I Report and Accounts I First Half

40 Company Head offices % Capital Held Direct Indirect Total Estádio de Coimbra, SC/Abrantina, ACE Rua Santos Pousada, nº Porto % 60.00% Casais, Eusébios, FDO, J. Gomes, Rodrigues e Névoa - Soares da Costa, Construção do Estádio de Braga - Acab.e Instalações/Infraest.Interiores, ACE Três ponto dois - T.G. Const. Civil - Via e Cat Mod. Linha do Norte, ACE Av. Imaculada Conceição, Dume Braga % 40.00% Avª das Forças Armadas, 125-2ºC - Lisboa % 50.00% Somague, Soares da Costa - Agrupamento Construtor do Metro de Superfície, ACE Remodelação Teatro Circo - S.C., A.B.B., D.S.T., ACE GCF - Grupo Construtor da Feira, ACE GCVC, ACE Mota-Engil, Soares da Costa, MonteAdriano - Matosinhos, ACE HidroAlqueva, ACE Nova Estação, ACE Soares da Costa e Lena, ACE Terceira Onda Planejamento e Desenvolvimento, Ltda. Rua Engº Ferreira Dias, Porto % 50.00% Rua Santos Pousada, nº Porto % 50.00% Rua do Rego Lameiro, nº 38, Campanhã, Porto Rua do Rego Lameiro, nº 38, Campanhã, Porto Via Adelino Amaro da Costa nº 315, Lugar da Guarda Moreira da Maia Av. Frei Miguel Contreiras, nº 54 7º Andar, Lisboa Av. Frei Miguel Contreiras, nº 54-7º Andar, Lisboa Rua Julieta Ferrão, 12º e 13º Andar, Nossa Senhora de Fátima, Lisboa Av. Ibirapuera, 2.332, Bloco I, 9º andar, sala 01, Ed. Torre Ibirapuera I; Moema, S. Paulo - Brazil % 28.57% % 28.57% % 28.57% % 50.00% % 25.00% % 50.00% % 50.00% Linha 3 Construções LTDA. Av. José Rocha Bomfim, 214, Térreo - Sala 115, Ed. Londres, Condomínio Praça Capital - Center Santa % 50.00% GACE - Gondomar, ACE Rua Eng. Ferreira Dias, nº Porto % 24.00% LGC - Linha de Gondomar, Construtores, ACE Rua Eng. Ferreira Dias, nº 161 Freguesia de Ramalde - Porto % 30.00% CAET XXI - Construções, ACE Rua de Santos Pousada, 220 Bonfim, Porto % 50.00% Israel Metro Builders - a Registered Partnership LGV, Engenharia e Construção de Linhas de Alta Velocidade, ACE SOMAFEL - Engenharia e Obras Ferroviárias, S.A. OFM - Obras Públicas, Ferroviárias e Marítimas, S.A. Somafel e Ferrovias, ACE Somafel - Obras Ferroviárias e Marítimas Ltda. Concessions SCUTVIAS - Autoestradas da Beira Interior, S.A. 132 Derekh Menakhem begin, Tel-Aviv, Israel % 30.00% Rua Abranches Ferrão, nº 10, 9ºF, Lisboa % 17.25% Avª da República, 42-3º Lisboa % 40.00% Avª Columbano Bordalo Pinheiro, 93-7º Lisboa Avª Columbano Bordalo Pinheiro, 93-7º Lisboa Rua Major Lopes, nº 800, sala 306, Bairro S.Pedro, Belo Horizonte-Minas Gerais % 40.00% % 24.00% % 40.00% Praça de Alvalade nº 6 7º Andar Lisboa % 33.33% OPERESTRADAS XXI, S.A. Rua Santos Pousada, nº Porto % 50.00% Exproestradas XXI - AE Transmontana, S.A. Rua Santos Pousada, nº Porto % 50.00% Soares da Costa I Report and Accounts I First Half

41 Company Head offices % Capital Held Direct Indirect Total Auto-Estradas XXI - Subconcessionária, S.A. Rua Santos Pousada, nº Porto % 50.00% Estradas do Zambeze, S.A. Operadora das Estradas do Zambeze, S.A. MRN - Manutenção de Rodovias Nacionais, S.A. Portvias - Portagem de Vias, S.A. Distrito Urbano 1, Bairro Central, Av. Ho Chi Min nº 1178, 2º andar, Maputo - Mozambique Distrito Urbano 1, Bairro Central, Av. Ho Chi Min nº 1178, 2º andar, Maputo - Mozambique Av. 12 de Novembro, nº 42, 1º Direito Alcains - Castelo Branco Avenida 12 de Novembro, 42, 1º Dto, Alcains - Castelo Branco % 40.00% % 40.00% % 33.33% % 33.33% During the first half of 2013, the following changes occurred in the set of companies that are part of the perimeter by the proportional method: Change in the corporate name of the company Linha 3 Cezarina Construções Ltda, in which the Group has a 50% through Soares da Costa Brasil Construções Ltda, now being denominated Linha 3 Construções Ltda including in its corporate purpose the construction, management, supervision, analysis, projects, planning, consulting and execution of all the general engineering works. As of June 30, 2013 the amounts, weighted by the percentage of joint control, of the assets, liabilities, costs, revenues and net earnings and cash flows of the operational, investment and financing activities related with the jointly controlled companies were as follows: Company Assets Liabilities Costs Revenues Net Cash flows from the activities Earnings Operational Investment Financing ASSOC - Soares da Costa - Construção do Estádio de Braga, ACE Auto-estradas XXI - Subconcessionária, S.A. 353,633, ,470,738 29,209,732 30,047, ,124 (25,881,888) - 25,875,248 CAET XXI - Construções, ACE 22,405,998 20,925,608 15,628,210 15,714,202 85,992 4,553,010 19,542 37,870 Casais, Eusébios, FDO, J. Gomes, Rodrigues e Névoa - Soares da Costa, ACE 23, Estádio de Coimbra, SC/Abrantina, ACE 297, , Estradas do Zambeze, S.A. 15,481,275 14,556,638 6,685,203 6,758,290 73,087 (750,174) 3, ,086 Exproestradas XXI - AE Transmontana, S.A. 3,680,140 4,271, , ,163 (205,168) (36,050) - 175,090 GACE - Gondomar, ACE 380, ,418 2,329 2,329 - (6,310) - - GCF - Grupo Construtor da Feira, ACE 251, ,164 13,814 13,814 - (33,061) 1,204 - GCVC, ACE 737, , , ,449 - (50,658) - - HidroAlqueva, ACE 3,990,757 4,008,458 2,364,267 2,364, ,331 - (379) Israel Metro Builders - a Registered Partnership 4,701,463 4,701, LGC - Linha de Gondomar, Construtores, ACE 736, ,193 22,979 24,908 1,929 (2,312) - 2,378 LGV, Engenharia e Construção de Linhas de Alta Velocidade, ACE 125, ,307 2, (2,127) 2, (433,960) Soares da Costa I Report and Accounts I First Half

42 Company Assets Liabilities Costs Revenues Net Earnings Cash flows from the activities Operational Investment Financing Linha 3 Construções LTDA. 1,924,260 1,571,187 5,639,992 6,016, ,266 (164,282) - - Mota-Engil, Soares da Costa, MonteAdriano - Matosinhos, ACE 1,845,076 1,845,076 2,227,389 2,227, , MRN - Manutenção de Rodovias Nacionais, S.A. 7,784,528 6,351,998 1,101,786 2,514,318 1,412, ,997 (1,516) - Normetro - Agrupamento do Metropolitano do Porto, ACE 3,101,795 3,101,795 3,033 3,033 - (12,122) - 5,283 Nova Estação, ACE 1,077,547 1,074,077 9,138 13,775 4,637 52,587 - (9) OFM - Obras Públicas, Ferroviárias e Marítimas, S.A. 7,098,924 5,370,555 3,038,876 2,927,148 (111,728) (424,154) (41,237) 456,490 Operadora das Estradas do Zambeze, S.A. 1,231, , , , ,534 (3,678) 20 - Operestradas XXI, S.A. 5,877,566 2,287, ,043 1,379, ,110 (90,909) (78,118) (226,041) Portvias - Portagem de Vias, S.A. 1,303,937 1,201,009 1,085,576 1,168,507 82, ,790 3,264 - Remodelação Teatro Circo - S.C., A.B.B., D.S.T., ACE 275, ,984 2,086 2,086 - (428) - - SCUTVIAS - Autoestradas da Beira Interior, S.A. 239,959, ,986,171 18,315,731 23,434,537 5,118,805 33,865, ,634 (13,819,927 ) Soares da Costa e Lena, ACE 8,772 2, (480) 5, SOMAFEL - Engenharia e Obras Ferroviárias, S.A. 14,830,809 5,461,444 2,338,255 1,365,877 (972,378) 533,433 7,025 (910,506) Somafel - Obras Ferroviárias e Marítimas Ltda. 398, , ,553 70,802 (65,751) (157,867) 177,992 (637) Somague, Soares da Costa - Agrupamento Construtor do Metro de Superfície, ACE 146,194 41, (33) Terceira Onda Planejamento e Desenvolvimento, Ltda. 1,007, ,632 42,816 60,688 17,873 (7,794) - - TRANSMETRO - Construção do Metropolitano do Porto, ACE 6,110,429 5,423,594 63,556 38,129 (25,427) (67,755) 11,640 - Três ponto dois - T.G. Const. Civil - Via e Cat Mod. Linha do Norte, ACE 393, , (333) (365) - - At the reporting date there are no contingent commitments or capital commitments related with the jointly controlled companies. 8. COMPANIES INCLUDED IN CONSOLIDATION BY THE EQUITY METHOD Companies included in consolidation by the equity method, their registered offices and the proportion of capital held as of June 30, 2013: Company Energia Própria Self Energy Moçambique, S.A. Larvick Reliable, S.L. Head offices Avenida Kenneth Kaunda, nº 403 Maputo Moçambique Av. Finestrat, S/N, Edificio La Cala, Local 10, Finestrat % Capital Held Direct Indirect Total % 45.00% % 49.50% Soares da Costa I Report and Accounts I First Half

43 Company UTE Efacec Self Energy, Ley 18/1982 Sustentável Desafio - Produção de Energia LDA. Construction Head offices Avenida de la Industria 4, Edf. 1, 2-2C Alcobendas - Madrid Avenida do Forte, nº 8, fracção P1, Carnaxide - Oeiras % Capital Held Direct Indirect Total % 50.00% % 35.00% Grupul Portughez de Constructii S.R.L Bucharest - Roménia % 50.00% CFE Indústria de Condutas, S.A. Rua Particular Joaquim Silva, 480 Sobrado - Valongo % 33.33% Constructora San José - Caldera, S.A. Costa Rica % 17.00% SDC Emirates Construction, L.L.C. Abu Dhabi - Emirados Árabes Unidos % 49.00% Alsoma, AEIE 3 Av André Malrau Levallois Perret % 18.00% Traversofer Industrie & Services Ferroviaires, SARL Real Estate Self-Energy Angola, Lda Concessions Metropolitan Transportation Solutions, Ltd. GAYAEXPLOR - Construção e Exploração de Parques de Estacionamento, Lda. INDÁQUA - Indústria e Gestão de Águas, S.A. INDÁQUA MATOSINHOS - Gestão de Águas de Matosinhos, S.A. Indáqua Vila do Conde - Gestão de Águas de Vila do Conde, S.A. Indáqua Feira - Indústria de Águas de Santa Maria da Feira, S.A. 27 Chemin du Reservoir - Hydra - Alger % 20.00% Rua Cônego Manuel das Neves, casa 19, Bairro Patrice Lumumba - Angola 14 Hamelecha Street, Park Afek, Rosh Haya'in Israel % 49.00% % 20.00% Rua Santos Pousada, nº Porto % 25.00% Rua Antero de Quental, 221-3º Sala Perafita % 28.57% Rua 1º de Maio, nº Matosinhos % 28.14% Praça Luís de Camões, 9, 3º Vila do Conde Rua Dr. Elísio de Castro, nº 37 - Santa Maria da Feira % 28.00% % 27.07% In the companies Constructora San José - Caldera, SA and Alsoma EEIG, the Group considers to have significant influence since they have the power to participate in making financial and operating policies of these companies. During the first half of 2013 the following changes in the companies included in the consolidation by the equity method: Alienation of of the company Global Azoague, S.L. by Ventos do Horizonte, S.A.; Constitution of the company Self Energy Angola, Lda. an Angolan company, in which the Group has a 49% through IMOSDC Investimentos Imobiliária. Lda. and having has corporate purpose the implementation, development and maximization of the use of the renewable energy and the recourse to innovative solutions as the designated alternative energies, namely via the availability of integrated solutions and services of energy management that maximise the energy resources value, audits and energy efficiency consulting and installation of energy equipment. Alienation of the participation held by the Grop in the company MTA - - Máquinas e Tractores de Angola, Lda. As of June 30, 2013 the total amount of assets, liabilities, revenue and net earnings of companies included in consolidation by the equity method were as follows: Soares da Costa I Report and Accounts I First Half

44 Company Assets Liabilities Shareholders' equity Costs Revenues Net Earnings INDÁQUA - Indústria e Gestão de Águas, S.A. 68,439,942 55,412,412 13,027,530 5,254,486 5,166,225 (88,262) Traversofer Industrie & Services Ferroviaires (a) 3,612-3, GAYAEXPLOR - Construção e Exploração de Parques Estacionamento, Lda. (e) 265, ,438 21, Alsoma, AEIE (b) 2,159, ,366 1,764, Grupul Portuguhez de Constructii S.R.L. 3,091,879 3,666,931 (575,053) 28,523 27,573 (950) Indáqua Matosinhos, S.A. 74,681,943 76,330,414 (1,648,471) 14,993,260 14,022,794 (970,466) Indáqua Vila do Conde, S.A. 54,964,916 52,562,354 2,402,562 8,174,583 8,102,220 (72,363) Indáqua Feira, S.A. 108,353,916 99,142,318 9,211,598 8,167,959 7,623,077 (544,882) CFE - Indústria de Condutas, S.A. (c) 614, ,082 75, SDC Emirates, LLC (c) 2,079 1, Metropolitan Transportation Solutions, Ltd. (d) 49,146,130 49,087,020 59, Construtora - S. José Caldera, S.A. (e) 20,665,199 3,943,884 16,721, Self Energy Moçambique S.A. 2,035,064 2,047,155 (12,091) 206,824 78,494 (128,330) Larvick Reliable, R. L. 37, ,466 (110,751) 44,476 7,799 (36,678) Ute Efacec/Self Energy, Ley 18/ , ,967 (556,936) 47,366 22,435 (24,931) Sustentável Desafio - Produção de Energia Lda. 498, ,968 (25,882) 11,417 - (11,417) Self-Energy Angola, Lda 79,352 63,677 15,675 63,709 - (63,709) (a) ; (b) ; (c) ; (d) ; (e) During the first half ended March 31, 2013 there was no record of impairment losses on these participations since there is no evidence of its existence, besides the value adjustment by impairment loss in the participation in CFE Indústria de Condutas, S.A. recorded for the year ended on December 31, 2012, in the amount of 97,795 Euros. 9. COMPANIES NOT INCLUDED IN CONSOLIDATION Companies not included in the consolidation, as they are not material to the reported results, their registered offices and the proportion of capital held as of June 30, 2013: Company Construção Estação Tratamento das Águas do Paiva, ACE GPCC - Grupo Português de Construção de Infraestruturas de Gás Natural, ACE GPCIE - Grupo Português de Construção de Infrestruturas da Expo, ACE Grupo Construtor do Edifício Gil Eanes, ACE Molinorte Linha do Norte - Construção Civil, ACE Soares da Costa, Engil, ACE - (Hosp. De Tomar) Head offices % Capital Held Direct Indirect Total Av. Fabril do Norte, Matosinhos % 50.00% Rua Santos Pousada, nº Porto % 25.00% Quinta de Beirolas - Estaleiro Moscavide (Parque Expo) Stª Maria dos Olivais Sacavém Edifício Gil Eanes, Expo 98, lotes e Sta.Maria dos Olivais % 25.00% % 50.00% Rua Santos Pousada, nº Porto % 23.50% Rua Santos Pousada, nº Porto % 50.00% Soares da Costa I Report and Accounts I First Half

45 The companies listed above are complementary group of companies (ACEs) whose projects are virtually complete. The assets, liabilities, costs, revenues and profits of these companies as of June 30, 2013 are as follows: Company % Participation Assets Liabilities Shareholders' equity Costs Revenues Net Earnings Construção Estação Trat. Das Águas do Paiva, ACE 50.00% 24,906 24, GPCC - Grupo Português de Construção de Infraestruturas de Gás Natural, ACE 25.00% 317, ,006 (885) (885) GPCIE - Grupo Português de Construção de Infraestruturas da Expo, ACE 25.00% Grupo Construtor do Edifício Gil Eanes, ACE 50.00% 62,557 62,724 (167) (167) Molinorte Linha do Norte - Construção Civil, ACE 23.50% 170, , Soares da Costa, Engil, ACE - (Hosp. de Tomar) 50.00% 101, , INFORMATION BREAKDOWN BY BUSINESS AREA Based on the consolidated financial information of each business area, we have the following breakdown of results, assets and liabilities by segment or business area as of June 30, 2013: Soares da Costa I Report and Accounts I First Half

46 Construction Real Estate Concessions Energia Própria Holding and other Eliminations Consolidated Turnover: External to the Group 241,475,222 19,513,006 54,112, , , ,924,550 Intragroup 17,608,353 2,046,566 10,415-5,387,949 (25,053,283) - Total turnover 259,083,575 21,559,572 54,123, ,173 5,518,309 (25,053,283) 315,924,550 Operational result by business area (2,609,505) 4,246,359 15,040,841 (529,632) (364,701) 1,048,482 16,831,844 Not imputed costs - Operational results (continued activity) (2,609,505) 4,246,359 15,040,841 (529,632) (364,701) 1,048,482 16,831,844 Net income from discontinued operations Interest paid (15,523,484) (1,122,945) (20,352,635) (137,109) (6,495,397) 10,519,174 (33,112,396) Interest received 5,640,988 63,245 11,469, ,225,824 (10,556,198) 12,843,235 Net income from associated companies - (21,217) (25,216) (52,308) - - (98,741) Other financial costs/ income (4,774,285) 40,865 1,157,962 (58,490) (129,376) 37,024 (3,726,300) Income tax 2,315,448 (2,062,480) (2,161,573) - 148,012 (242,615) (2,003,207) Results from recurrent activity (14,950,838) 1,143,827 5,128,679 (777,462) (615,639) 805,867 (9,265,565) Minorities 316,409 (12,244) (332,430) - (27,931) Net income attributable to the Group (15,267,247) 1,156,071 5,128,679 (777,797) (283,208) 805,867 (9,237,635) Other data: Assets by business area 994,517, ,911, ,362,674 15,571, ,255,402 (593,830,962) 1,797,788,201 Financial invesments 9,147,717 18,222 26,050,543 97,925 - (5,544,939) 29,769,468 Consolidated total assets 1,827,557,669 Liabilities by business area 879,385,931 89,226, ,747,468 15,419, ,954,793 (302,873,555) 1,770,860,362 Consolidated total liabilities 1,770,860,362 Depreciations, amortisations and imparity losses 8,187, ,830 7,118, , ,731 (4,515) 16,585,398 Provisions and value adjustments 267,081-3,376 (221) ,235 Reversion of adjustments (30,461) - - (11,151) - - (41,612) Intantigle and tangible assets acquisitions 2,533, ,586 73, ,283,924 The breakdown of the net earnings as of June 30, 2012 and of the assets and liabilities by business area as of December 31, 2012 was the following: Soares da Costa I Report and Accounts I First Half

47 Turnover: Construction Real Estate Concessions Energia Própria Holding and other Eliminations Consolidate d External to the Group 334,339, ,624 92,239,762 1,066, , ,502,023 Intragroup 55,128,560 2,088, ,080-5,957,418 (63,549,122) - Total turnover 389,468,450 2,801,688 92,614,842 1,066,547 6,099,618 (63,549,122) 428,502,023 Operational result by business area 5,518,909 1,370,578 16,384,456 (818,607) (9,031,755) ,423,918 Not imputed costs - Operational results (continued activity) 5,518,909 1,370,578 16,384,456 (818,607) (9,031,755) ,423,918 Net income from discontinued operations Interest paid (17,852,426) (1,245,194) (18,207,652) (93,590) (8,675,295) 11,870,042 (34,204,114) Interest received 7,401,981 65,532 8,835, ,425,780 (12,010,345) 10,718,394 Net income from associated companies ,168 (21,806) ,362 Other financial costs/ income (4,362,758) 91,001 (2,125,188) 157,752 3,037,055 (3,159,790) (6,361,929) Income tax 3,147,572 (114,371) (1,602,244) 173, ,546 (89) 2,209,957 Results from recurrent activity (6,146,722) 167,547 3,383,899 (602,621) (7,638,668) (3,299,846) (14,136,411) Minorities 121,777 (6,161) (39,097) - - (262,018) (185,500) Net income attributable to the Group (6,268,499) 173,708 3,422,996 (602,621) (7,638,668) (3,037,828) (13,950,912) Other data: Assets by business area 993,290, ,040, ,989,930 15,338, ,237,508 (565,216,463) 1,765,680,174 Financial invesments 9,117,638 78,984 21,532,676 1,160,932 - (5,544,675) 26,345,555 Consolidated total assets 1,792,025,729 Liabilities by business area 863,466,227 79,552, ,170,535 15,735, ,402,427 (274,509,585) 1,738,817,110 Consolidated total liabilities 1,738,817,110 Depreciations 9,023, ,695 7,016,711 40, ,247 (4,515) 17,211,418 Provisions and value adjustments 9,026, ,014 2, ,181,051 Reversion of adjustments (692,602) (1,089) (693,691) Intragroup transactions are done at market values. Sales and services breakdown by geographical market: Soares da Costa I Report and Accounts I First Half

48 Turnover by geographical market % % Portugal 78,633, % 140,491, % Angola 129,174, % 175,993, % United States 55,466, % 67,944, % Mozambique 35,211, % 34,724, % Other countries 17,439, % 9,347, % Total 315,924, % 428,502, % The net assets and investments in tangible assets are distributed across geographical markets as follows: Portugal Angola U.S. Mozambique Other countries Total Net Assets: - Intangible 309,287,771-9,556,647-64, ,908,596 - Fixed Tangible 114,784, ,454,403 10,948,142 3,137,910 6,721, ,047,065 - Investment Properties 10,530,230 6,632,861-32,275-17,195,366 - Financial Investments 23,586,007 18, ,388,676 35,992,905 - Inventories 51,171,157 26,409,815-1,787,561 4,609,215 83,977,747 - Accounts Receivable 450,431, ,709,321 17,560,659 39,231,976 26,337, ,271,292 - Cash andequivalents 64,051,240 23,638,121 5,790,799 2,362,406 5,024, ,866,897 - Deferred taxes 41,688, ,267 18,287,462 71, ,288 60,904,901 - Other assets 61,953,172 71,693,399 4,782,895 12,024,822 10,938, ,392,901 Total 1,127,485, ,035,409 66,926,604 58,648,035 66,462,417 1,827,557,669 Investments in the First Half of 2013: - Intangible and Fixed Tangible Assets 688,260 1,681, , , ,348 3,283,924 Total 688,260 1,681, , , ,348 3,283, INTANGIBLE ASSETS a) Gross assets The movements in the gross value of intangible assets were the following: Intangible assets Opening Balance Changes in Perimeter Increases Disposals Exchange Transfers and Rate Effect write off s Closing Balance Goodwill 84,025, ,572-84,107,745 Other intangible assets 298,336, , (1,884,540) 296,991,567 Total 382,361, ,559-82,691 (1,884,540) 381,099,312 The effect of foreign exchange conversion in "Goodwill" in the amount of 82,572 Euros, is related to the foreign exchange adjustment of goodwill of Prince and the balance recorded under this heading, as of June 30, 2013, relates to the following acquisitions occurred in prior years : Soares da Costa I Report and Accounts I First Half

49 Goodwill Energia Própria, S.A 5,039,642 5,039,642 Sociedade de Construções Soares da Costa, S.A. (Contacto) 40,616,765 40,616,765 Scutvias Autoestradas da Beira interior, S.A. 28,128,844 28,128,844 Hidroequador Santomense Exploração de Centrais Hidroeléctricas, Lda 711, ,659 Hidroeléctrica STP, Limitada 54,187 54,187 Prince Contracting, LLC. 9,556,647 9,474,075 Total 84,107,745 84,025,172 The "Other intangible assets" balance concerns mainly to Public Service Concession Agreements (IFRIC12). The amount recorded in the column Transfers and write-offs results of the termination of the operation, management and maintenance contract of the parking lot of the city market in Faro on the associated company C.P.E. - Companhia de Parque de Estacionamento, S.A.. During the semester ended June 30, 2013 there was no record of impairment losses on other intangible assets besides the adjustments recorded in prior periods relating to six parks of the associated CPE - Companhia de Parque de Estacionamento, S.A. in the amount of 5,281,000 Euros, and the Gemini s park held by Costaparques - Estacionamentos, S.A. in the amount of 775,000 Euros. During the first half of 2013 were capitalized financial costs, valued at 310,903 Euros as part of the cost of these assets and related with ongoing projects in the area of hydroelectric concessions. The capitalization rate corresponds to specific financing these projects, whose rate is 4.853%. In the consolidated financial statements of the Group as of June 30, 2013 is capitalized as part of the net cost of these assets, the amount of 5,622,293 Euros. As of June 30, 2013 there are no contractual commitments to acquire intangible fixed assets and no research and development expenses were registered in the period. b) Accumulated depreciations Movements in accumulated depreciations of intangible assets: Intangible assets Opening Balance Changes in Perimeter Increases Regularization Exchange Rate Effect Closing Balance Other intangible assets 56,965,630-6,529,594 (1,304,538) 30 62,190,716 Total 56,965,630-6,529,594 (1,304,538) 30 62,190,716 The amount recorded in the column Regularizations of the heading Other intangible assets results of the termination of the operation, management and maintenance contract of the parking lot of the city market in Faro on the associated company C.P.E. - Companhia de Parque de Estacionamento, S.A.. In late 2012, the Group, in accordance with IAS 36, made impairment tests to the goodwill relating to the acquisitions of Prince, Energia Própria, Scutvias and Hidroequador Santomense and Sociedade de Construções Soares da Costa (Contacto) based on evaluations conducted internally. Prince The methodology used was the discounted cash flow (DCF - "Discounted Cash Flows"). The reference value was calculated assuming the continuity of the company and the maintenance of the current organization. For this purpose we estimated the activity of the company until 2017 and assumed that it will enter a mature stage of business from this year (thus estimating perpetuity according to the Gordon model). The operating free cash flows have been updated by an annual rate of discount of 10.08% which reflects the weighted average cost of capital (WACC): (a) Cost of debt capital: 5.31%; Soares da Costa I Report and Accounts I First Half

50 (b) Income tax: 35%; (c) Risk-free interest rate: 1.76%; (d) Risk premium to the market value of 5.78%; (e) Beta of assets of 1.17; (f) Leveraged Beta according to the Hamada formula; (g) Capital structure target 13.23% ( market ratio used in the US to a set of companies in the same business sector) Energia Própria The methodology used was the Discounted Cash Flow (DCF - "Discounted Cash Flows"). The reference value was calculated assuming the continuity of the company, the inexistence of future synergies and the maintenance of the current organization. The estimates were produced assuming a nominal growth rate equivalent to inflation rate of 2%. The explicit projection period was ten years, i.e to It was considered a residual value that corresponds to the overall value that we consider the stabilization of its profitability, i.e., in this case, after 2022, an amount determined as the current value of a perpetual and was assumed a growth rate long-term cash flows equal to the inflation rate assumed. The operating free cash flows have been updated by an annual rate of discount of 8.86% which reflects the weighted average cost of capital (WACC): (a) Cost of debt capital: 7.5%; (b) Income tax: 26.5%; (c) Risk-free interest rate: 5.3%; (d) Premium market risk value of 5.3%; (e) Beta of assets of 0.77; (f) Leveraged Beta according to the Hamada formula; (g) Capital structure target 55%. Scutvias The DCF Discounted Cash Flows method was used, in the shareholder's perspective (Free Cash-Flow to Equity). The reference value was calculated assuming the continuity of the company, the absence of future synergies and maintaining the current organisation structure. Estimates were based on the financial prospects of the business plan which takes into account the conditions of the respective concession contract. The discount rate of 11.0% was used based on the following parameters: (a) Risk-free interest rate 5.3%; (b) Market risk premium: 5.0%; (c) Levered beta equity: Hidroequador Santomense Also with reference to Hidroequador Santomense, an internal impairment test has been ran by the end of The assessment methodology used has been Cash-Flow to Equity (shareholder perspective) according to which the company's value is obtained through the update of the cash flows expected by the shareholder, i.e. dividends payment and return of capital such as shareholders advances and loans as well as inherent interest. In the case at hand, the concessions the end of the concessions is known and being those structured in a project finance regime, this has been the method usually used by the market. The calculation of the financial projections has been based on financial model and resulting financial statements. The free cash flows risk is evaluated through the usage of a discount rate used to update those flows at the moment of the assessment. In order to obtain the discount rate, a risk-free interest rate, a market-risk premium and a country-risk premium have been used. In order to estimate the net cash flow generated, given that the concessions' end is predetermined, financial projections over the concession period have been taken into account. After running impairment tests, it was concluded that there is no need to make any adjustments to the value obtained. Sociedade de Construções Soares da Costa (Contacto) Contacto was acquired by Soares da Costa Grupo in the beginning of 2008 to Sonae Grupo, with a 44,222,541 Euros goodwill. Soares da Costa I Report and Accounts I First Half

51 During 2012, in the context of the restructuring operations implemented in the Group s construction business area, Contact was merged with Sociedade de Construções Soares da Costa, SA. Taking into consideration the human and technical resource of the company and the corresponding associated know-how follow in a fairly approximate way the value of thw works to be done, we have considered turnover as a good measure to brakdon goodwill by the cah generatuin units of the company: Portugal, Angola and other markets. The DCF Discounted Cash Flows method was used. The reference value was calculated assuming the continuity of the company, the absence of future synergies and maintaining the current organisation structure. The explicit estimate period was ten year, from 2013 to A residual value was considered, corresponding to the global value assumed to the profitability steady state, an amount determined as the present value of perpetuity, assuming a specific long term growth rate to each of the cash generation units of the company. The methods and assumptions used to assess the existence or otherwise of impairment were as follows: Assumptions Portugal Angola Outras geografias Method used DCF DCF DCF Basis Business plan and budget Business plan and budget Business plan and budget Period 10 years 10 years 10 years Cost of debt 7.5% 16.0% 16.0% Risk free rate(*) 5.3% 5.3% 5.3% Market risk premium 5.0% 7.0% 7.0% Non leveraged Beta (**) Target capital structure 65% 65% 65% Growth rate of cash flows in perpetuity 2.0% 3.5% 2.0% WACC 9.6% 15.3% 15.3% * Average yield of the Portuguese 10-year bonds before the external financial help requested by the Portuguese state. ** Leveraged Beta according to the Hamada formula. After running impairment tests, it was concluded that there was the need to make a reduction adjustment to the goodwill value in Sociedade de Construções Soares da Costa (Contacto), amounting to Euros referring to the cash generation unit in Portugal. 12. TANGIBLE ASSTES a) Gross assets Movement in gross value of tangible fixed assets: Fixed tangible assets Opening Balance Changes in Perimeter Increases Disposals Exchange Rate Effect Transfers and write offs Closing Balance Land and buildings 215,979,701 (1,182,396) 2,377 (221,391) 40,707 1,910, ,529,087 Basic Equipment 146,465,455 (640,970) 597,909 (2,827,750) 123,651 (191,409) 143,526,885 Other fixed tangible assets 54,940,015 (818,723) 681,568 (955,469) 50,707 (362,334) 53,535,764 Fixed tangible assets in progress 14,497,193 (57,944) 1,462,511 - (2,417) (2,424,850) 13,474,493 Total 431,882,364 (2,700,033) 2,744,364 (4,004,610) 212,648 (1,068,503) 427,066,229 In the column Increases of the Tangible fixed assets in progress is registered works for the company amounting to 593,630 Euros. The amounte accounted in the column Changes in Perimeter reflect the exit of the perimeter of the associated company Carta - Restauração e Serviços, Lda., due to its alienation during the first half of During the first half of 2013, were capitalized financial costs as part of the cost of these assets, valued at 81,890 Euros, which covers essentially the project of Hidroeléctrica STP,Lda. Soares da Costa I Report and Accounts I First Half

52 The Group s financial statements as of June 30, 2013, included the amount of 924,289 Euros capitalized as part of the net cost of these assets. As of June 30, 2013 there are no materially relevant contractual commitments for the acquisition of tangible fixed assets. b) Accumulated depreciations Movement in accumulated depreciations of tangible fixed assets: Fixed tangible assets Opening Balance Changes in Perimeter Increases Regularization Exchange Rate Effect Closing Balance Land and buildings 53,293,866 (774,509) 2,997,650 (138,233) 6,349 55,385,123 Basic Equipment 88,566,223 (258,033) 4,693,674 (2,220,547) 60,617 90,841,934 Other fixed tangible assets 40,461,226 (477,648) 2,182,144 (1,414,121) 40,506 40,792,107 Total 182,321,315 (1,510,189) 9,873,469 (3,772,902) 107, ,019,164 During 2012, the company tested for impairment the accounting value of some of its properties through assessments by independent entities. No impairment losses (or reversal of losses) were recorded for the tangible fixed assets in the period ended June 30, Breakdown of the net values of intangible fixed assets and tangible fixed assets by primary reporting segment as of June 30, 2013 is as follows: Construction Real Estate Concessions Energia Própria Financial Participation Total Goodwill 50,173,412-28,894,690 5,039,642-84,107,745 Other intangible assets 10,040-12,404, ,490-12,941,092 Agreements to the concession of services ,859, ,859,759 Total intangible assets 50,183, ,159,012 5,566, ,908,596 Land and buildings 74,546,002 72,462,282 14,135, ,143,964 Basic Equipment 51,222,694 66,507 1,139, ,937-52,684,950 Other fixed tangible assets 10,770, , ,042 5, ,880 12,743,658 Fixed tangible assets in progress 6,603,699 1,840,278 4,610, , ,265 13,474,493 Total fixed tangible assets 143,142,480 74,798,346 20,433, ,209 1,129, ,047, INVESTMENT PROPERTIES AND FINANCIAL INVESTMENTS a) Gross assets Movement in the gross value of investment properties and financial investments: Soares da Costa I Report and Accounts I First Half

53 Investment properties and Financial investments Opening balance Changes in Perimeter Exchange Rate Effect Increases Disposals Equity Method Transfers and write offs Closing Balance Investment properties 16,322,142 3,756,334 17, , (27,350) 20,378,065 Financial investments: Equity consolidated financial investments 11,246,193 29,812 39,169 (98,593) 11,216,581 Loans to associated companies 15,099, ,597,468 (1,064,959) - (78,984) 18,552,887 Other financial investments 6,047, ,159, (1,983,502) 6,223,437 Total 32,392,908-29,812 6,796,224 (1,064,959) (98,593) (2,062,486) 35,992,905 The amount recorded at Investment properties, column Changes in Perimeter amounting to Euros reflects the appropriation of 51% of the inicial balance of the project Talatona Residences. The amount recorded on the item Investment properties, column Increases is related with Cais da Fontinha s renting contract. The amount accounted in the column Increases of the Equity consolidated financial investments reflect the entrance in the Grpup s consolidation perimeter, by the equity method, of the associated company Self Energy Angola, Lda.. The financial investments in the associated companies CFE - - Indústria de Condutas, S.A., Grupul Portuguhez Constructii of SRL, Ute Efacec / Self Energy, Ley 18/1982, Larvick Reliable, R.L., Sustentável Desafio, Lda. and Self Energy Moçambique, S.A., are recorded at zero-value. The amounts that exceed the value of the investment, on the Group's share of accumulated losses of these associated companies, amount to 19,874 Euros, 287,526 Euros, 278,469 Euros, 54,822 Euros, 9,059 Euros and 5,441 Euros, respectively. The amount recorded under "Loans to associated companies", column "Increases" is related with loans granted to the associated companies Indáqua, S.A. and Metropolitam Transportation Solutions, Ltd. In the amount of 141,968 Euros and 4,398,000 Euros, respectively. The amount recorded under Loans to associated companies in the column Disposals is related with the credit cession over the company Global Azoague, S.L., whose participation, accounted at zero-value, was totally sold during the first quarter of The amount recorded under "Other financial investments", column "Increases" is related with loans granted to the subsidiary Elos - Ligações de Alta Velocidade, S.A.. The amount recorded in the column Tranfers and wrote offs of the heading Other financial investments reflect the return of extraordinary capital injections In the company Autopistas Del Valle, S.A.. b) Accumulated depreciations Movement in accumulated depreciations of investment properties: Opening Balance Changes in Perimeter Increases Regularisation Exchange Rate Effect Closing Balance Investment properties 2,971,196 30, ,335 (1,964) 262 3,182,699 During the period ended June 30, 2013 were recognized income (rents) from investment properties amounting to 534,063 Euros. There were no direct operating expenses during the period of investment property or contractual obligations to purchase, construct or develop investment property or for repair, maintenance or enhancements thereof. According to external evaluations carried out by an independent specialist and based on generally accepted evaluation criteria for the real estate market, the fair value of assets classified as investment properties amounts to approximately 24.7 million Euros. Soares da Costa I Report and Accounts I First Half

54 14. BREAKDOWN OF STOCKS Stocks Raw materials and consumables 14,711,513 16,781,336 Goods and works in progress 17,391,273 16,667,563 Finished and intermediate goods 42,035,998 45,894,444 Goods 16,162,695 16,473,236 Value adjustments (6,323,731) (6,410,526) Total 83,977,747 89,406,053 During the first half of 2013 were not capitalized financial charges as part of the cost of these assets. As of June 30, 2013 were capitalised at the Group s consolidated financial statements, as part of the net cost of these assets, the amount of 1,055,274 Euros of financial costs. 15. BREAKDOWN OF ACCOUNTS RECEIVABLE Accounts receivable Customers with retention of guarantees 25,280,381 27,829,308 Advances to suppliers 302, ,679 Other accounts receivable 340,409, ,786,028 Accounts receivable - non current 365,992, ,239,015 Customers - current accounts 379,258, ,615,805 Customers - guarantees's retention 19,936,641 16,955,043 Customers - other receivables 305,836 1,806,928 Customers - doubtful accounts 38,774,013 38,623,068 Value adjustments (38,774,013) (38,623,068) Customers 399,501, ,377,777 Subsidiaries 959,314 1,027,939 Advances to suppliers/ fixed assets suppliers 14,103,384 18,599,749 State and other public bodies 5,669,944 7,803,882 Other accounts receivable 22,373,709 23,429,344 Value adjustments (1,408,904) (1,408,828) Other accounts receivable - current 41,697,447 49,452,085 The amount registered in the "Other accounts receivable non current" heading refers to the compliance with IFRIC12 (financial asset model) by the jointly controlled entities Auto-Estradas XXI - Subconcessionária, S.A. e Estradas do Zambeze, S.A.. The Group s exposure to credit risk results from the accounts receivable related with its activity, being the maximum exposure to the credit risk the nominal value of its accounts receivable. There is no significant concentration of credit risk as of June 30, The following table shows, by consolidated companu and by seniority levels the customers current accounts balances by the end of the first half: Soares da Costa I Report and Accounts I First Half

55 Company Performing 0 to 180 days 181 to 360 days 361 to 540 days 541 to 720 days days Total Soc. Construções Soares da Costa, SA 57,631,015 38,476,144 34,112,549 26,225,957 6,436, ,817, ,699,196 Talatona Imobiliária, Lda - 20,568, ,568,550 Prince Contracting, LLC 11,663,051 2,315, ,979,049 CLEAR ANGOLA, Lda. 6,115,738 3,868, , , ,202 1,695,529 12,611,814 Soares da Costa Concessões, SGPS, S.A. 7,599,545 15, ,593 7,670,473 Soares da Costa Moçambique, SARL 1,715,421 3,521, , , , ,085 7,596,789 CLEAR - Instalações Electromecânicas, S.A. 1,468, , , ,829 1,419,063 4,424,897 Soares da Costa Construction Services, LLC ,381,686 3,381,686 TRANSMETRO - Construção do Metropolitano do Porto, ACE 3,186, ,186,399 Normetro - Agrupamento do Metropolitano do Porto, ACE ,694,748 2,694,748 SOMAFEL - Engenharia e Obras Ferroviárias, S.A., SA 388,315 1,485, ,246 19,801 1,903 17,929 2,139,975 Hidroequador Santomense - Exploração de Centrais Hidroeléctricas - 2,094, ,094,744 OFM - Obras Públicas, Ferroviárias e Marítimas, S.A. 969, ,751-61,972 59, ,749 1,668,601 Linha 3 Construções LTDA. - 1,410, ,410,588 HidroAlqueva, ACE - 1,361, ,361,553 Energia Própria, SGPS, S.A. 1,297,442 42, ,340,227 C.P.E. - Companhia de Parque de estacionamento, S.A. - 1,183,150 21,138 12,446 2,844 75,464 1,295,042 Soares da Costa Construcciones Centro Americanas, SA , , ,378 1,074,273 Soares da Costa S. Tomé e Principe - Construções, Lda 190, , ,047 2, , ,756 Mota-Engil, Soares da Costa, MonteAdriano - Matosinhos, ACE 741, ,983 GCVC, ACE 150, , ,721 Terceira Onda Planejamento e Desenvolvimento, Ltda. 364,850-11, ,588 GACE - Gondomar, ACE 343, ,230 Other companies 854, , ,275 16,084 17, ,205 1,438,895 Total 94,680,536 77,991,721 35,524,233 27,836,135 8,149, ,293, ,475,776 Although it is not expected other situations of uncollectible credits beyond those for which the value adjustments were made, the antiquity of some, although characteristic of the construction sector, it is still high, so we can not exclude the possibility of additional future value adjustments, and therefore such situations are carefully monitored by management. As of June 30, 2013 and December 31, 2012, the heading "State and other public entities" breaks down as follows: Value added tax 5,189,064 7,267,493 Other 480, ,389 Total 5,669,944 7,803, BREAKDOWN OF OTHER CURRENT AND NON CURRENT ASSETS The value of 8,550,000 Euros and 7,125,000 Euros, under "Other non current assets", as of June 30, 2013 and December 31, 2012, respectively, relate to term deposits which are intended to vindicate the contribution "Capital Contingent" under the "Subscription and Realization of Capital Agreement of Transmontana motorway concession". Soares da Costa I Report and Accounts I First Half

56 Other current assets Income accruals 134,815, ,903,780 Deferred costs 18,027,205 11,843,455 Total 152,842, ,747,235 As of June 30, 2013 and December 31, 2012 these items breakdown is the following: Accrued income Non invoiced works done (*) 113,176,587 83,395,289 Compensatory processes in progress (*) 12,038,089 12,611,178 Estimated revenue by traffic range 8,144,571 18,740,954 Other accrued income 1,456,450 2,156, ,815, ,903,780 Deferred costs Construction works' set up costs 4,537,439 2,051,354 Other deferred cost (*) 13,489,766 9,792,101 18,027,205 11,843,455 (*)The values shown in these items are related to multiannual construction works and have a temporary nature, corresponding to the best estimate at the reference date of the accounts and could have different expression, depending on the evolution of each work and the contractual vicissitudes until the completion of the work. The heading "Estimated revenue per band" respects to traffic revenues generated under the motorway concessions and unbilled. 17. BREAKDOWN OF CASH AND EQUIVALENTS Cash and equivalents Bank deposits 100,122, ,908,214 Cash 744, ,107 Total 100,866, ,464,321 From the total account balances as of June 30, 2013 and December 31, 2012, 24,005,337 Euros and 15,719,885 Euros respectively, in the percentage of participation attributable to the Group, relates with cash and equivalents without recourse accounted as term deposits from the concessionaire company of Scutvias - Autoestradas da Beira Interior, S.A. The financing and concession agreements of the associated company Scutvias Autoestradas da Beira Interior, S.A. require the maintenance of deposits equal to 5/3 of the next debt payment. Therefore, as of June 30, 2013 and December 31, 2012 the reserves of demand deposits or term deposits included in the Consolidated Financial Position amount to these mentioned figures. 18. COMPOSITION OF SHARE CAPITAL AND RESERVES Soares da Costa, SGPS, S.A. share capital amounts to 160,000,000 Euros, represented by: a) One hundred and fifty-nine million nine hundred and ninety-four thousand four hundred and eighty-two (159,994,482) ordinary shares; Soares da Costa I Report and Accounts I First Half

57 b) Five thousand five hundred and eighteen (5,518) preferred shares with no voting rights, but with the right to receive a preferred dividend and preferred reimbursement of the respective issue value if the company declares bankruptcy. During the period ended June 30, 2013, the movements related with own shares were as follows: No. of shares Nominal value Discounts and Amount Opening balance 507, ,292 (334,766) 172,526 Acquisitions Alienations (507,292) (507,292) 334,766 (172,526) Closing balance The currency conversion reserve reflects the exchange rate changes occurred in translating the financial statements of subsidiaries in a currency other than Euro and are not likely to be distributed or be used to absorb losses. Some participated companies of the Group companies contracted hedging derivatives. Changes in the fair value of those financial instruments are directly recognised at the "Reserves and retained earnings" heading. The change between December 31, 2012 and June 30, 2013, of the derivatives s fair value and respetive deferred taxes breakdown as follows: Derivatives Deferred taxes Total Intevias Serviços e Gestão, S.A. 1,684,521 (421,130) 1,263,391 C.P.E. Companhia de Parques de Estacionamento, S.A. 906,699 (226,675) 680,024 Scutvias Autoestradas da Beira Interior, S.A. 2,548,058 (752,696) 1,795,362 Auto-Estradas XXI - Subconcessionária, S.A. 13,077,028 (3,465,412) 9,611,616 Total 18,216,306 (4,865,914) 13,350, BANK LOANS As of June 30, 2013, the main bank loans contracted by the Group are as follows: Holding Grupo Soares da Costa, SGPS, SA has contracted with a banking syndicate the placement and underwriting of Commercial Paper issues up to a limit of 32,000 thousand Euros, under a commercial paper programme contract in place up to 16 June On June 30, 2013 this program was titrated in Grupo Soares da Costa, SGPS, SA, and the Sociedade de Construções Soares da Costa, SA is jointly responsable for the obligations arising from this funding. Loan granted by Caixa Central de Crédito Agrícola Mutuo to Grupo Soares da Costa, SGPS, SA, amounting to 2,865 thousand Euros, to be repaid in 12 instalments ending on November 2021; Loan granted by Caixa Geral de Depósitos to Grupo Soares da Costa, SGPS, S.A., amounting to 1,250 thousand Euros, to be repaid in 12 instalments ending on November 2021; Loan granted by Banco Popular Portugal to Grupo Soares da Costa, SGPS, SA, amounting to 5,000 thousand Euros, to be repaid in 12 instalments ending on November 2021; Loan granted by Caixa Geral de Depósitos to Grupo Soares da Costa, SGPS, S.A., amounting to 14,000 thousand Euros, to be repaid in 12 instalments ending on November 2021; Loan granted by Banif - Banco Internacional do Funchal to Grupo Soares da Costa, SGPS, SA currently amounting to 1,471 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by Banif - Banco Internacional do Funchal to Grupo Soares da Costa, SGPS, SA currently amounting to 500 thousand Euros, to be paid back in 12 instalments ending on November 2021; Soares da Costa I Report and Accounts I First Half

58 Loan granted by Banif - Banco Internacional do Funchal to Grupo Soares da Costa, SGPS, SA currently amounting to 2,500 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by Banco Comercial Português e Caixa Geral de Depósitos to Grupo Soares da Costa, SGPS, SA currently amounting to 1,002 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by Caixa Banco de Investimentos to Grupo Soares da Costa, SGPS, SA currently amounting to 150 thousand Euros, to be reimbursed in 2013; Bonds issued by Grupo Soares da Costa, SGPS, SA, amounting to 20,000 thousand Euros, to be repaid by November 2015; Bonds issued by Grupo Soares da Costa, SGPS, SA, amounting to 80,000 thousand Euros, to be repaid by December 2017; Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 300 thousands Euros, to be repaid in quarterly instalments, ending on April 2016; Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 108 thousands Euros, to be paid back in quarterly instalments, ending on September 2016; Loan granted by Banco Santander to Energia Própria, S.A., currently amounting to 125 thousands Euros, to be paid back in quarterly instalments, ending on November 2013; Loan granted by Banco Santander to Self Energy Engineering & Innovation, S.A., currently amounting to 50 thousands Euros, to be paid back in quarterly instalments, ending on September Construction Loan granted by NCG Banco, SA, Portuguese subsidiary, to Sociedade de Construções Soares da Costa, S.A. currently amounting to 1,235 thousand Euros, to be repaid on 31 instalments ending December 2015; Loan granted by NCG Banco, SA, Portuguese subsidiary, to Sociedade de Construções Soares da Costa, S.A. currently amounting to 1,000 thousand Euros, to be repaid on 20 instalments ending Janeiro 2023; Loan granted by Banco BPI to Sociedade de Construções Soares da Costa, S.A. amounting to 611 thousand Euros, to be paid back in 2013; Loan granted by Banco BPI to Sociedade de Construções Soares da Costa, S.A. amounting to 2,750 thousand Euros, to be paid back on 8 instalments ending of September 2017; Loan granted by Banco BIC Português to Sociedade de Construções Soares da Costa, S.A. amounting to 1,528 thousand Euros, to be paid back on 36 instalments ending of June 2016; Loan granted by Banco BIC Português to Sociedade de Construções Soares da Costa, S.A. amounting to 2,075 thousand Euros, to be paid back on 38 instalments ending of June 2016; Loan granted by Banif Banco Internacional do Funchal to Sociedade de Construções Soares da Costa, S.A. amounting to 3,035 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Banif Banco Internacional do Funchal to Sociedade de Construções Soares da Costa, S.A. amounting to 660 thousand Euros, to be paid back on December 2015; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 684 thousand Euros, to be paid back on June 2017; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 14,341 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Banco Comercial Português and Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, S.A. amounting to 45,998 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, S.A. amounting to 8,750 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, S.A. amounting to 16,000 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Caixa Geral de Depósitos to Sociedade de Construções Soares da Costa, S.A. amounting to 16,980 thousand Euros, to be paid back on 12 instalments ending on November 2021; Soares da Costa I Report and Accounts I First Half

59 Loan granted by Banco Popular Português to Sociedade de Construções Soares da Costa, S.A. amounting to 10,107 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Banco Bilbao Vizcaya Argentaria (Portugal) to Sociedade de Construções Soares da Costa, S.A. amounting to 6,293 thousand Euros, to be paid back on 19 instalments ending on July 2014; Loan granted by Barclays Bank to Sociedade de Construções Soares da Costa, SA amounting to 2,040 thousand Euros, to be paid back in 2013; Loan granted by Barclays Bank to Sociedade de Construções Soares da Costa, SA amounting to 1,711 thousand Euros, to be paid back in 2013; Loan granted by Barclays Bank to Sociedade de Construções Soares da Costa, SA amounting to 1,200 thousand Euros, to be paid back in 2013; Loan granted by Banco BAI Europa to Sociedade de Construções Soares da Costa, S.A. amounting to 2,405 thousand Dollars, to be paid back in 2013; Loan granted by Banco Santander Totta to Sociedade de Construções Soares da Costa, SA amounting to 1,236 thousand Euros, to be paid back in 15 instalments ending on March 2014; Loan granted by Montepio Geral to Sociedade de Construções Soares da Costa, S.A. amounting to 9,000 thousand Euros, to be paid back in 10 instalments ending on June 2020; Loan granted by Banco Espírito Santo to Sociedade de Construções Soares da Costa, S.A. amounting to 161 thousand Euros, to be paid back in 2013; Loan granted by Banco Espírito Santo to Sociedade de Construções Soares da Costa, S.A. amounting to 3,212 thousand Euros, to be paid back on 17 instalments ending on November 2014; Loan granted by Banif Banco Internacional do Funchal to Sociedade de Construções Soares da Costa, S.A. amounting to 213 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 11,217 thousand Euros, to be paid back in 2013; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 1,400 thousand Euros, to be paid back in 2013; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 2,150 thousand Euros, to be paid back in 2013; Loan granted by Banco Comercial Português to Sociedade de Construções Soares da Costa, S.A. amounting to 1,025 thousand Euros, to be paid back in 2013; Sociedade de Construções Soares da Costa, S.A. has contracted with Barclays Bank the placement and underwriting of Commercial Paper issues up to a limit of 8,250 thousand Euros, under a commercial paper programme contract in place up to August As of June 30, 2013 this programme was being fully used. Sociedade de Construções Soares da Costa, S.A. has contracted with Caixa Geral de Depósitos the placement and underwriting of Commercial Paper issues up to a limit of 15,000 thousand Euros, under a commercial paper programme contract in place up to November As of June 30, 2013 this programme was being fully used; Sociedade de Construções Soares da Costa, S.A. has contracted with Banco Comercial Português the placement and underwriting of Commercial Paper issues up to a limit of 4,500 thousand Euros, under a commercial paper programme contract in place up to November As of June 30, 2013 this programme was being fully used; Sociedade de Construções Soares da Costa, S.A. has contracted with Banco Comercial Português and Banco Popular Portugal the placement and underwriting of Commercial Paper issues up to a limit of 15,000 thousand Euros, under a commercial paper programme contract in place up to November As of June 30, 2013 this programme was being fully used; Loan granted by Banco de Fomento de Angola to Sociedade de Construções Soares da Costa, S.A. amounting to 94,079 thousand Kwanzas, to be paid back in 2013; Loan granted by Banco de Fomento de Angola to Sociedade de Construções Soares da Costa, S.A. amounting to 742,000 thousand Kwanzas, to be paid back in 2013; Loan granted by Banco BIC Angola to Sociedade de Construções Soares da Costa, S.A. amounting to 508,722 thousand Kwanzas, to be paid back in 2013; Soares da Costa I Report and Accounts I First Half

60 Loan granted by Banco Privado Atlântico to Sociedade de Construções Soares da Costa, S.A. amounting to 1,416,500 thousand Kwanzas, to be paid back in 2013; Loan granted by Banco Privado Atlântico to Sociedade de Construções Soares da Costa, S.A. amounting to 914,009 thousand Kwanzas, to be paid back in 2013; Loan granted by Millennium BCP Angola to Sociedade de Construções Soares da Costa, S.A. amounting to 400,000 thousand Kwanzas, to be paid back in 2013; Loan granted by Mizrahi Tefahot Bank,LTD. to Sociedade de Construções Soares da Costa, S.A. amounting to 4,248 thousand Euros, to be paid back in 2013; Loan granted by Mizrahi Tefahot Bank,LTD. to Sociedade de Construções Soares da Costa, S.A. amounting to 6,115 thousand Euros, to be paid back in 2013; Loan granted by Montepio Geral to Clear Instalações Electromecânicas, S.A. amounting to 88 thousand Euros, to be paid back in 2013; Loan granted by Banco Comercial Português to Clear Instalações Electromecânicas, S.A. amounting to 770 thousand Euros, to be paid back on 12 instalments ending on November 2021; Loan granted by Caja Duero to Clear Instalações Electromecânicas, S.A. amounting to 299 thousand Euros, to be paid back on 11 instalments ending on January 2014; Loan granted by Banco BIC Angola to Clear Instalações Electromecânicas, S.A. amounting to 889 thousand Dollars, to be paid back on 12 instalments ending on June 2014; Loan granted by Banco Africano de Investimentos to Clear Instalações Electromecânicas, S.A. amounting to 330,567 thousand Kwanzas, to be paid back on 34 instalments ending on April 2016; Loan granted by Banif Banco Internacional do Funchal to Soares da Costa America, Inc. amounting to 14,900 thousand Dollars, to be paid back in six-monthly instalments ending on November 2021; Loan granted by Commerce National Bank Finance to Soares da Costa America, Inc. currently amounting to 1,946 thousand Dollars, to be paid back on December 2013; Loan granted by TerraBank to Soares da Costa America, Inc. currently amounting to 1,900 thousand Dollars, to be paid back on April Concessions Loan granted by Banco BPI to Soares da Costa Concessões, SGPS, S.A. amounting to 200 thousand Euros, to be paid back in 2013; Loan granted by Banco Popular Portugal to Soares da Costa Concessões, SGPS, S.A. amounting to 15,954 thousand Euros, to be paid back in 18 instalments ending on November 2024; Loan granted by Banif Banco de Investimentos to Soares da Costa Concessões, SGPS, SA amounting to 2,556 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by Banco Comercial Português to Soares da Costa Concessões, SGPS, S.A. amounting to 7,866 thousand Euros, to be paid back on June 2017; Loan granted by Banco BPI to CPE-Companhia de Parques de Estacionamento, S.A. amounting to 27,498 thousand Euros, to be paid back on 32instalments ending December 2028; Loan granted by Banco BPI to CPE-Companhia de Parques de Estacionamento, S.A. amounting to 1,100 thousand Euros, to be paid back in 2013; Loan granted by Banco BPI to CPE-Companhia de Parques de Estacionamento, S.A. amounting to 433 thousand Euros, to be paid back in 2013; Loan granted by Banco BPI to Intevias Serviços e Gestão, S.A. amounting to 62,258 thousand Euros, to be paid back on 14 instalments ending on July 2028; Loan granted by Banco BPI to Intevias Serviços e Gestão, S.A. amounting to 3,190 thousand Euros, to be paid back in 2013; Loan granted by Caixa Banco de Investimentos to Soares da Costa Hidroenergia 1T, Lda. and Soares da Costa Hidroenergia 4T, Lda. amounting to 5,000 thousand Euros, to be paid back on January 2014; Soares da Costa I Report and Accounts I First Half

61 Loan granted by a banking syndicate and the European Investment Bank to Scutvias Autoestradas da Beira Interior, S.A. in the amount and in the percentage of our participation of 9,420,676 Euros and 6,716,516 Euros respectively, to be paid back on semi-annual instalments ending on October 2013; Loan granted by BBU Bank to Soares da Costa Concessions USA, Inc., amounting to 2,000 thousand Dollars, to be paid back in April Real Estate Loan granted by Banco Comercial Português to Ciagest Imobiliária e Gestão, SA amounting to 2,048 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by Banco Comercial Português to Ciagest Imobiliária e Gestão, SA amounting to 11,217 thousand Euros, to be paid back in 12 instalments ending on November 2021; Loan granted by NCG Banco, SA, branch in Portugal, to Ciagest Imobiliária e Gestão, SA currently amounting to 3,737 thousand Euros, to be paid back in 85 instalments ending on June 2020; Loan granted by NCG Banco, SA, branch in Portugal to Ciagest Imobiliária e Gestão, SA currently amounting to 903 thousand Euros, to be paid back in 23 instalments ending on April 2015; Loan granted by NCG Banco, SA, branch in Portugal to Cais da Fontinha - Investimentos Imobiliária, S.A. currently amounting to 903 thousand Euros, to be paid back in 2013; As of June 30, 2013, the heading Bank loans, in non-current liabilities, included the financing loans obtained by the associated company Scutvias Autoestradas da Beira Interior, SA to fund the construction of the motorway, operated under a concession contract, from the European Investment Bank (EIB) and from the banking syndicate, amounting to 88,269,943 Euros and 55,222,298 Euros, respectively, in the percentage attributable to the Group. The main terms of these loans are the following: Credit facility Interest rate 1st Payment Last payment Banking Syndicate Variable rate indexed to 6- month Euribor 1H 2006 European Investment Bank Fixed rate of 6.43% 2H H H 2024 Additionally, the jointly controlled company Estradas do Zambeze, S.A. has contracted a medium/ long term financing, from BCI Banco Comercial de Investimentos, S.A., with a maximum limit of 288,480,000 Meticais, for 10 years, with interest indexed to the FPC (Facilidade Permanente de Cedência) settled by Banco de Moçambique, in each interest period plus a spread of 2.5%, rounded to the ¼ above percentage. The amount used, as of June 30, 2013, is Metical. The jointly controlled company, Auto-Estradas XXI - Subconcessionária, S.A., entered into the following financing: long term credit facility, EIB facility with commercial risk and EIB facility with guarantees, under the following terms: Soares da Costa I Report and Accounts I First Half

62 EIB facility with commercial risk Amount: Amount as of : Total Period: Use Period: Interest Rate: Margin: Commitment Fee: Financial operations fee: Redemption: Hedging: Up to Euros Euros Up to 27 years as of the Financial Close 5 years Euribor plus margin From 2009 until the first semester of 2016: 0,90% p.a. After the first semester of 2016: 0,37% p.a. Note: an additional 0.20% margin over the EIB margins has been considered since that to the financings entered into with EIB on a variable rate, an estimated 0.31% spread over Euribor is chargeable. 0.45% p.a. over the amount not used 0,50% flat Variable and increasing with mandatory redemption amounts Interest rates variation risk hedging through a swap contract with differentiated coverage: of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: - From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cashsweep system; - From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweepsystem; EIB's guaranteed facility loan Amount: Amount as of : Total Period: Use Period: Interest Rate: Margin: Commitment Fee: Financial operations fee: Redemption: Hedging: Up to Euros Euros Up to 27 years as of the Financial Close 5 years Euribor plus margin 0.0% as long as bank guarantees are in force and 0.37% after the release of the bank guarantees granted by commercial banks. Note: the financial system isn't taking into account the release of the bank guarantees 0.20% p.a. over the amount not used 0.20% flat Variable and increasing with mandatory redemption amounts Interest rate variation risk hedging through a swap contract with differentiated coverage: of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cash sweep system; From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweep system; Soares da Costa I Report and Accounts I First Half

63 Long Term Credit Facility Amount: Up to Euros Amount as of : Euros Total Period: Up to 27 years as of the Financial Close, that is to say until 10/12/2035 Use Period: 5 years (from 2009 to 2013) Interest Rate: Euribor plus margin Margin: 2009 to 2011: 1,60% p.a to 2015: 1,80% p.a. Commitment Fee: 50% of the applicable margin over the amount not used Financial operations fee: Agent's Fee: 1,40% flat In fiscal terms, the incidence of the fee has been divided between VAT and stamp duty with the 75% and 25% respectively EUR 100,000 per year, adjusted with inflation Redemption: Full cash sweep during 2014 and 2015 and the remaining bullet in Hedging: Interest rate variation risk hedging through a swap contract with differentiated coverage: of the capital during the availability period and for the following periods the coverage levels for the outstanding principal: From 2014 to 2027: 70% of the outstanding principal not taking into account the depreciations under the cash sweep system; From 2028 to 2029: 17% and 7% of the outstanding principal not taking into account the depreciations under the cash sweep system; The consortium bid takes into account the renegotiation of the Long Term Credit Facility in 2016 through the issuance of a debenture loan under more advantageous conditions. This refinancing operation is not deemed as the "Sub concession refinancing" provisioned in clause 90 of the Sub concession Contract because it is a part of the Consortium bid, the fulfilment risk is fully undertaken by the Consortium and is included in the Base Case. This way, it is acknowledged that, should favourable impacts result from such operation, those results shall be fully withheld by the Sub concessionary. The financial conditions of the refinancing operation are as follows: Amount: 256,292, Euros Total Period: Until 20 years Use Period: A single use in 2016 Interest Rate: Euribor plus margin Margin: 1.50% Financial operations fee: 0.50% flat Agent's Fee: EUR 100,000 per year, adjusted with inflation Redemption: 42 six-monthly instalments with variable capital as of 30 June 2016 Hedging: Interest rate variation risk partial hedging through a swap contract with the following coverage levels for the outstanding principal: From 2016 to 2026: 70% of the outstanding principal; Year 2028: 17% of the outstanding principal; Year 2029: 7% of the outstanding principal; Remaining period: 0% coverage, that is to say variable capital regime. The nominal values of the loans recorded in the Consolidated Financial Position as of June 30, 2013 have the following maturities: Soares da Costa I Report and Accounts I First Half

64 Maturity Bank loans Bonds Other loans Overdrafts Other (factoring) Total ,206, ,771,858 1,170, ,148, ,531, ,531, ,735,694 19,724, ,459, ,696, ,696, ,806,924 78,324, ,131, ,360, ,360,683 > ,471,841-14,500, ,971,841 Total 1,032,809,775 98,048,402 14,500,000 10,771,858 1,170,257 1,157,300,292 The amount recorded under "Other loans" refers to a loan with a mercantile profile, subordinate, granted by Globalvia Inversiones, SA to the jointly controlled entity Auto-Estradas XXI (value in the percentage attributable to the Group). This loan is intended to meet the cash requirements of the Auto-Estradas XXI regarding the development of the construction works and the completion thereof. The non-recourse debt as of June 30, 2013 had the following maturities: Maturities Bank Loans Other Loans ,999, ,125, ,315, ,528, ,974, ,862,458 - > ,252,125 14,500,000 Total 499,058,374 14,500,000 The Group s loans as of June 30, 2013 had the following interest rates: Type of Credit Facility Minimum Maximum Overdrafts 3.847% 7.487% Hot Money 5.828% 5.828% Bank loans 1.928% 8.948% Bonds 2.912% 2.952% Commercial paper 3.218% 6.968% Additionally, specific financing contract in local markets on Angola, Mozambique, Israel and Oman have interest rates between 3.431% and 20.2%. In general, bank loans pay interest at variable rates hence exposing the Group to the effect of fluctuations in market interest rates. However, to manage interest rate risk, in particular in the Concessions business area, the Group contracted financial instrument to cover interest rates changes, as summarised in the "Derivatives" note below. Based on the net indebtness level as of June 30, 2013, a variation of one percentage point in the indexing interest rate would have an impact p.a. in terms of financial costs of 6.7 million Euros. Soares da Costa I Report and Accounts I First Half

65 20. DERIVATIVES The Group has contracted the following hedging derivatives for interest rate coverage: Scutvias - Autoestradas da Beira Interior, S.A. Type of financial instrument: Description: Banks: Currency: Derivative Interest rate coverage, of debt to commercial banking (to all term of the debt) BCP / BPI / BAYERISCHE / CGD Euro Contract date: 24/09/1999 Beginning date: 01/10/1999 Maturity date: 04/10/2018 Frequency: Swap: 7.14 Amount covered by : Reference: Semiannual Euros Euribor + 1% during the construction phase Euribor + 0.9% during the operation phase Intevias - Serviços e Gestão, S.A. Type of financial instrument: Derivative Description: Interest rate coverage Banks: BPI Currency: Euro Contract date: 04/12/2008 Beginning date: 04/12/2008 Maturity date: 15/07/2023 Frequency: Annual Swap: 3.45 Amount covered by : Euros, reedemable Reference: Euribor 12 months CPE - Companhia de Parques de Estacionamento, S.A. Type of financial instrument: Derivative Description: Interest rate coverage Banks: BPI Currency: Euro Contract date: 09/06/2009 Beginning date: 10/06/2009 Maturity date: 10/12/2028 Frequency: Semiannual Swap: 4.19 Amount covered by : Euros, redeemable Reference: Euribor 6 months Soares da Costa I Report and Accounts I First Half

66 Auto-estradas XXI - Subconcessionária, S.A. Type of financial instrument: Description: Banks: Currency: Derivative Interest rate coverage BBVA, BANESTO, BANCO POPULAR, BANKIA, SANTANDER TOTTA, BPI, LA CAIXA Euro Contract date: 30/01/2009 Beginning date: 03/02/2009 Maturity date: 31/12/2029 Frequency: Swap: 4.22 Amount covered by : Reference: Semiannual Euros, redeemable Euribor 6 months As of June 30, 2013, these instruments had been classified as coverage instruments as they met the formal requisites of IAS 39 related to the documentation and effectiveness of the derivative coverage instruments. The fair value of these financial instruments was set by the respective counterparts which are independent and credible entities by adopting appropriate evaluation models. These were based on the discounted cash flow method using observable market inputs listed in the interbank market. As of June 30, 2013 and December 31, 2012, the item Derivatives has the following breakdown. Derivatives Intevias Serviços e Gestão, S.A. 4,409,720 6,094,241 C.P.E. Companhia de Parques de Estacionamento, S.A. 3,716,918 4,623,617 Scutvias Autoestradas da Beira Interior, S.A. 10,353,108 12,901,166 Auto-Estradas XXI - Subconcessionária, S.A. 46,809,159 59,886,187 Total 65,288,905 83,505, BREAKDOWN OF ACCOUNTS PAYABLE As of June 30, 2013 and December 31, 2012 the item Accounts payable breakdown was the following: Accounts payable Fixed assets suppliers 746,087 1,212,027 Suppliers with retention of guarantees 13,797,695 15,509,345 Advances from customers 15,554,590 12,763,840 Other 12,313,198 13,747,790 Accounts payable - non current 42,411,569 43,233,002 Associated companies 9, ,724 Other shareholders 1,237, ,122 State and other public entities (excluding income tax) 9,327,594 9,382,280 Outros credores 61,704,677 55,773,014 Accounts payable - current 72,279,509 65,814,140 State and other public entities (excluding income tax) account breakdown as of June 30, 2013 and December 31, 2012: Soares da Costa I Report and Accounts I First Half

67 Value added tax 4,728,731 2,028,417 Social security's contributions 1,412,551 1,952,571 Other 3,186,313 5,401,291 Total 9,327,594 9,382, BREAKDOWN OF OTHER CURRENT LIABILITIES Other current liabilities Costs accruals 115,667,361 95,742,805 Deferred income 33,766,037 27,917,858 Total 149,433, ,660,663 As of June 30, 2013 and December 31, 2012 these items breakdown was as follows: Accrued costs Invoiced to be received 76,696,445 69,670,285 Staff costs to pay 8,621,902 7,220,793 Interest to pay 8,980,935 5,845,123 Other accrued costs (*) 21,368,079 13,006,604 Deferred income 115,667,361 95,742,805 Works invoiced not executed (*) 30,613,276 24,656,176 Antecipated rents 291, ,854 Other deferred income 2,860,949 2,941,828 33,766,037 27,917,859 (*) The amounts shown in these items are related to construction works with a multiannual profile and have a temporary nature, corresponding to the best estimate at the reference date of the accounts and could have different expression up to its completion, depending on the evolution of each work and the contracts features. 23. BREAKDOWN OF VALUE ADJUSTMENTS AND PROVISIONS Movement in value adjustments was as follows: Value Adjustments Notes Opening Balance Changes in Perimeter Increases Reversions Utilisation Exchange Rate Effect Closing Balance Doubtful customers 38,623,068 (76,676) 260,562 (30,795) (5,777) 3,631 38,774,013 Customers 15 38,623,068 (76,676) 260,562 (30,795) (5,777) 3,631 38,774,013 Other accounts receivable 1,408, ,408,904 Other accounts receivable 15 1,408, ,408,904 Raw materials and consumables 226, (8,571) ,299 Finished and intermediate goods 4,153, (39,864) - 4,113,613 Goods 2,030,838 (36,873) - (2,247) ,991,820 Inventories 14 6,410,526 (36,873) - (10,818) (39,864) 760 6,323,731 Total value adjustments 46,442,422 (113,548) 260,562 (41,612) (45,641) 4,466 46,506,648 Soares da Costa I Report and Accounts I First Half

68 The amount recorded in column "Changes in perimeter" reflects the exit of the Group's consolidation perimeter of the associated company Carta Restauração e Serviços, Lda., sold during the first half of Impairment losses related with accounts receivable are accounted based on an individual risk analysis, considering its nature, the payment delay and the Group s past experience in similar situations. Movement in provisions and its breakdown by type was as follows: Opening Balance Changes in Perimeter Increases Reversion Utilization Fx effect and transfers Closing Balance Lawsuits 572, (374) - 572,379 Pensions and other staff costs 212,392 (100,676) 9,895 - (5,483) ,980 Other provisions 91, (221) (16,179) - 75,308 Total 876,853 (100,676) 9,895 (221) (22,037) ,667 The amount recorded in column "Changes in perimeter" reflects the exit of the Group's consolidation perimeter of the associated company Carta Restauração e Serviços, Lda., sold during the first half of Details on the value adjustments and existing provisions as of June 30, 2013 by primary reporting segment (business areas): Construction Real Estate Concessions Energia Própria Total Consolidated Raw materials and consumables 218, ,299 Finished goods 3,869, , ,113,613 Goods - 1,967,914-23,906 1,991,820 Inventories 4,088,138 2,211,687-23,906 6,323,731 Doubtful customers 37,157,363 1,542,462 5,089 69,100 38,774,013 Customers 37,157,363 1,542,462 5,089 69,100 38,774,013 Other accounts receivable 1,408, ,408,904 Other accounts receivable 1,408, ,408,904 Total value adjustments 42,654,405 3,754,149 5,089 93,006 46,506,648 Lawsuits 532,885-39, ,379 Pensions and other staff costs 93,428-23, ,980 Other provisions 75, ,308 Other provisions for risks and charges 701,620-63, ,667 Soares da Costa I Report and Accounts I First Half

69 24. FINANCIAL RESULTS Financial results breakdown for the financial periods ending on June 30, 2013 and 2012: Costs and losses Interest paid 33,112,396 34,204,114 Losses in financial investments in associated companies 98,741 21,821 Foreign exchange losses 5,276,000 9,587,140 Cash discounts granted 9,577 2,161 Costs with guarantees 4,052,558 3,840,902 Costs with banking services 2,505,850 2,842,088 Other financial costs and losses 871,424 1,755,487 Other financial losses 12,715,410 18,027,779 (1) 45,926,547 52,253,714 Income and gains Interets received 12,843,235 10,718,394 Gains in financial investments in associated companies - 99,183 Income and capital gains from participations 3,297, ,015 Foreign exchange gains 5,661,430 11,331,993 Cash discounts obtained 6,879 92,556 Other financial income and gains 22,820 43,286 Other financial gains 5,691,129 11,467,835 (2) 21,832,344 22,483,427 Financial results (2)-(1) (24,094,203) (29,770,286) The heading Capital gains from capital participations reflects the alienation of a concession in Costa Rica, in which the Group has a 17% participation and the alienation of the participated companies Carta-Restauração e Serviços S.A. and MTA- Máquinas e Tractores de Angola, Lda INCOME TAX AND DEFERRED TAXES The income tax accounted for the periods ended June 30, 2013 and 2012 breakdown as follows: Income tax Income tax (current) 1,691, ,477 Deferred tax 311,510 (2,598,434) Total 2,003,207 (2,209,957) Deferred taxes assets and liabilities accounted in Consolidated Financial Position Statement were originated by the following situations: Soares da Costa I Report and Accounts I First Half

70 Deferred tax assets Losses reported 35,627,398 32,618,102 Fixed assets diverge valuation 4,709,496 4,754,258 Value adjustments in intangible assets 1,521,836 1,524,153 Inventories' value adjustments 390,744 1,264,083 Accounts receivables value adjustments 1,814 1,814 Financial instruments fair value 17,494,394 22,360,309 Others 1,159, ,703 Total 60,904,901 63,317,422 Deferred tax liabilities Fixed assets diverge valuation 16,287,626 16,742,330 Inventories value adjustments 506, ,245 Non fiscal accepted's provisions 7,672,344 8,264,765 Capital gains with deferred taxes 392, ,709 Other 382, ,980 Total 25,241,945 25,884, EARNINGS PER SHARE The company s capital is constituted by 159,994,482 ordinary shares and 5,518 preferred shares without voting rights, without nominal value. Holders of preferred shares without voting rights are entitled to a priority dividend on the terms stipulated in 2.7 of the respective issuance prospectus and are listed for trading, at no less than 5% of the respective par value, pursuant to article 341 (2) of the Portuguese Corporate Code. Earnings per Share Continued operations earnings, net of minorities (9,237,635) (13,950,912) Net income attributable to the Group (9,237,635) (13,950,912) Number of preferred shares 5,518 5,518 Number of ordinary shares 159,994, ,994,482 Total number of shares - 507,292 Weighted average number of ordinary shares 159,747, ,499,423 Earnings attributable to preferred shares Continued operations earnings per share Basic (0.058) (0.087) Diluted (0.058) (0.087) Earnings per share Basic (0.058) (0.087) Diluted (0.058) (0.087) The company does not have convertible debt instruments, meaning the basic result is the same as the diluted result. Soares da Costa I Report and Accounts I First Half

71 27. GUARANTEES Detail of bank guarantees and collateral provided by the Group to third parties as of March 31, 2013 are as follows: Euros US Dollar Mozambican Metical Other Total Bank guarantees 339,548,147 35,223,649 7,581,478 2,993, ,346,792 Collateral 16,959,824 11,467,890 18, ,446,511 Bank Guarantees Guarantees in respect of construction contracts 226,232,945 Guarantees in respect of concession contracts 49,031,070 Guarantees given to financial institutions 93,649,694 Other guarantees 16,433,083 Total 385,346,792 The value of bank guarantees under construction contracts correspond essentially to guarantee proper execution of the work. By their nature they include, by definition, execution risk, therefore only after the end of the warranty period associated with each work, could be considered as final the non-materialisation of any contingency. The value of guarantees given to financial institutions consist essentially to the bank guarantees from the jointly controlled company Scutvias - Autoestradas da Beira Interior, S.A., on behalf of the European Investment Bank in the amount of 74,918,807 Euros (on the part attributable to the Group, in the proportion of the stake held). The banks involved in the provision of such bank guarantees are coincident with the entities present in the bank syndication process. 28. RELATED PARTIES Balances and transactions between Group companies included in the perimeter of consolidation are eliminated on consolidation and are not disclosed in this note. Balances and transactions between the Group and its associated companies (consolidated by the equity method) are detailed in the tables below. The terms and conditions used in transactions between group companies and associated companies are substantially the same normally contracted between independent entities in comparable operations. Balance as of Customers Other accounts receivable Loans to Group companies and associated companies Other accounts payable Gayaexplor - Const.Exploração de Parques Estacionam., Lda 102,674-27,500 - Indáqua - Indústria e Gestão de Águas, SA - - 9,993,586 - Metropolitan Transportation Solutions, ltd. 7,194,530 1,500,238 8,451, ,794 Grupul Portughez de Construtii, S.R.L. 353,108 47, ,756 - CFE Indústria de Condutas, S.A. 13,168 9, SDC Emirates Construction, L.L.C , Self Energy Moçambique, S.A. 164, Larvick Reliable, R.L. 15,000-43,000 - Sustentável Desafio - Produção de Energia Lda ,924 - Self-Energy Angola, Lda - 7, Total 7,842,518 1,666,827 19,011, ,874 Soares da Costa I Report and Accounts I First Half

72 Transactions as of Operational revenues and gains Operational costs and losses Financial costs and losses Self-Energy Angola, Lda 46, Indáqua - Indústria e Gestão de Águas, S.A ,791 Self Energy Moçambique, S.A. 64,286 12,650 - Total 110,406 12, , SUBSEQUENT EVENTS After the end of the first half, the Group reached an agreement to a capitalisation operation of its subsidiary Soares da Costa Construção, the subholding that owns the participation in the construction business area. This capitalisation will be made through a share capital increase to be subscribed by the new investor, totalling 70 million Euros. In the corporate structure after the capitalisation operation, Soares da Costa Group will hold 33.33% of the capital of Soares da Costa Construção and will maintain the participation currently held in the remaining business areas and the construction business in the US market. 30. CONTINGENCIES Dispute between Quinta da Murtosa / Sociedade de Construções Soares da Costa / Porto Municipality The disputes previously reported with Quinta da Murtosa and Porto Municipality were resolved. From these resolutions, the subsidiary company Sociedade de Construções Soares da Costa, S.A. will receive from the Porto Municipality several lands to construction with a with a building capacity of about 30,300 m2 and and assumed the commitment to pay to Quinta da Murtosa circa 500,000 Euros. The amounts involved in these transactions do not have a relevant impact in the year s results. Red Line of the Tel Aviv Light Rail Project, Israel During the execution of the concession contract a dispute involving the grantor (State of Israel) and Metropolitan Transportation Solutions (MTS), the concessionaire company in which the Group holds a 20% stake, arose as timely disclosed to the market. After the signature of the referred contract, which took place on May 2007, and as provisioned in the contract, the actions leading to the "Financial Close" and the early performance of the project works started. Activities leading to the "Financial Close" have been disturbed by the global financial crisis which determined the need for some amendments to the contractual provisions. Those amendments have been exhaustively negotiated by the grantor and the concessionaire along with financing entities. During the third quarter of 2010, MTS has been confronted with the decision of the grantor to terminate the contract due to alleged breach of contract, unless MTS accepted a new set of compensation for the grantor along with other conditions. The concessionaire and its shareholders have decided to reject that position by the grantor as well as the conditions demanded - which would render the project inoperable - and submit the dispute to an Arbitration Court, implementing the required actions for that purpose. The arbitration proceedings have been occurring within the normal standards and with the typical length of such processes. The State of Israel has used all legal mechanisms at their disposal to delay the process as possible; the judgment hearings were finally scheduled to the first half of Consolidated assets that are exposed to this risk amount to 21.8 million Euros, with the sums claimed under that dispute standing far beyond that figure. Soares da Costa I Report and Accounts I First Half

73 MTS and its shareholders have already expressed the conviction that the board of directors shares, that the process is unfolding with the necessary independence and respect for international canons, so still awaiting an outcome to the process during the year Concession Contract for the High Speed Railway Stretch Poceirão-Caia from the line between Lisbon and Madrid of the participated company Elos Ligações de Alta Velocidade, S.A. : The Portuguese Audit Court refused the prior approval to the concession contract on 21 March 2012, leading to the cancellation of the project. As a consequence, the company initiated negotiations with its employees from the termination of their contracts, deactivating its office and revoking all contracts signed for the continuation of the concession contract. Also following the refusal of prior approval, the company started the preparation of a request for payment of the State for the costs incurred for the grant which was sent to the State on July 30, 2012, claiming the amount of million Euros, on that date. The Portuguese state did not answered to payment request, therefore Elos initiated the preparation of a judicial action in the Arbitration Court. Regarding the financing contracts, it was signed an agreement in June (Partial Assignment Agreement) between the company, the European Investment Bank (EIB), and the banking syndicate formed by Caixa Geral de Depósitos, Banco Comercial Português and Banco Espírito Santo by which were transferred to the commercial banks the two credit facilities contracted with the EIB, through cession of EIB s contractual position to the banking syndicate. The facilities were transferred to Part A Loan in the amount of 300 million Euros, still not discounted, and 300 million Euros ( Part B Loan ), with a utilization value at the date of 90,761,574 Euros. These values have no impact on the consolidated accounts of the company as the financial contribution is valued at acquisition cost. In the second half of the year of 2012, however, was expressed by the Portuguese State through the banking syndicate, the intention to take advantage the conditions of the financial package of the project, including interest rate swap contracts, so the remaining contracts were maintained by the company and at January 22, 2013 was finished the company s contractual position s cession in all the credit facilities and swap contracts to Parpública. On April 25, 2013 it was sent to the Portuguese State the application and appointment of arbitrator by Elos, for the Arbitration Court composition. The Portuguese State has already sent its contestation in june, Tax Claims: 1) As broadly announced, in 2002, Soares da Costa Group was submitted to a profound restructuring and reorganization process that include, among other items, the constitution of a holding company and four sub-holdings by each business area: construction, real estate, concessions and industry. These sub-holding were constituted with its capital entering in kind by the holding, with the transfer at market values of portfolio of participations previously held in each of those segments by the holding company, being generated capital gains and losses with tax relevance. The Portuguese tax authority, following an examination to Grupo Soares da Costa, SGPS, SA s accounts, notified the company in 2005 for an income tax payment of 17,136,692 Euros, determined by the disregard as tax expenditures of a set of capital losses generated in that business process (given that considers as income the capital gains generated in the same process). As duly communicated to the market (as relevant information on 10 November 2005) that company, as well as external consultants and auditors who supervised and intervened in the proceedings, frontally disagree with that opinion, and the settlement was been legally contested, exception 381,752 Euros that have already been paid. 2) In July 2012, the company Grupo Soares da Costa, SGPS, SA, the parent/ holding company of the Special Taxation of Corporate Groups (RETGS), was notified of the settlement of 2008 s income tax (IRC), as a result of the inspection made to the company and to some its subsidiaries. From this notification results a payment of 2,164 million Euros under the corrections introduced by the Tax Authority (AT), mainly relating to the deductibility of financial charges and transfer pricing. The company disagrees with AT s understanding and already has appealed against the settlement and has required, pursuant the terms of the Code of Tax Procedure and Process, the suspension of the enforcement proceedings. The board of directors and the company s lawyers believe these tax claims will be successful. Soares da Costa I Report and Accounts I First Half

74 3) In June 2013, Grupo Soares da Costa, SGPS, the holding company of the Special Taxation of Corporate Groups (RETGS), was notified of the settlement of 2009 s income tax (IRC), as a result of the scrutiny made to the company and some of its subsidiaries. From this notification results a payment of million Euros, with a deadline for voluntary payment as of August 12, 2013, under the corrections introduced by the AT, mainly relating to the deductibility of financial costs. The company disagrees with AT s understanding and has the purpose of undertake a judicial review of the respective settlement. The board admits that, if AT s understanding prevails, corrections of the same kind may occur to subsequent years, with implications for the company and relevant subsidiaries accounts. 31. ACCOUNTS RELEASE S APPROVAL At a meeting held on August 13, 2013, the board of directors authorised the release of these consolidated financial statements. Soares da Costa I Report and Accounts I First Half