REPORT AND ACCOUNTS First Half 2015

REPORT AND ACCOUNTS First Half 2015

TABLE OF CONTENTS 1. CONSOLIDATED MANAGEMENT REPORT...3 2. APPENDICE IN ACCORDANCE WITH ART 9 OF CMVM REGULATION 5/2008... 19 3. CONSOLIDATED FINANCIAL STATEMENTS... 21 3.1 CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2015... 22 3.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2015... 27 Consolidated Management Report First Half 2015 José de Mello Saúde 2

1. CONSOLIDATED MANAGEMENT REPORT Consolidated Management Report First Half 2015 José de Mello Saúde 3

1.1 VISION, MISSION AND VALUES José de Mello Saúde (JMS) is known for and recognised by its mission, its values and the objectives it has set out to attain. Vision To be a leader in the provision of healthcare with a distinguished quality, supported by an integrated network of high-performance units, in the private sector as well as the public, and presenting options for growth in selected international markets. Mission To promote the provision of health with the highest levels of knowledge, respecting the supremacy of life and the environment through the development of the organisations intellectual capital in a permanent quest for the best. To achieve its mission José de Mello Saúde carries out its activity based on three platforms of excellence: Excellency in human talent The transmission and fostering of the Group values The evaluation and reward of performance The attentive and challenging management of the professional career of each person The fostering of a culture marked by accountability, demanding standards, strict compliance and achievement The sharing of knowledge and team work Excellency in service The development of centres of clinical excellence The management of customer relations The humanisation of care The constant improvement in service levels Excellence in operations and systems The permanent development of capacities for innovation and planning The on-going improvement of processes The systematic increase in productivity The strong focus on clinical technologies and information Strict cost control Consolidated Management Report First Half 2015 José de Mello Saúde 4

Values The employees of José de Mello Saúde have added responsibilities in the consolidation of José de Mello Saúde s identity through the affirmation and transmission of its values: Respect for the dignity and well-being of persons Human development Competence Innovation 1.2 MACROECONOMIC AND HEALTH SECTOR ENVIRONMENTS I - Macroeconomic Environment In the first half of 2015, the Euro Zone countries continued their positive course, which began in late 2013. In this period there was overall growth in the main macroeconomic indicators. The data available for the first quarter of 2015 show that in comparison with the previous quarter, the GDP of the Euro Zone rose 1%, driven largely by the increase in private consumption (+1,7%), an increase in domestic demand (+1,3%) and a rise in exports (+4,2%). 1 In the light of these indicators, the projections for the end of 2015 were adjusted upwards, with growth in the GDP of the Euro Zone expected to surpass the 0,9% growth seen in 2014, attaining 1,5% this year, or 0,2 p.p. higher than what was initially forecast for 2015. The outlook for the second half of the year remains optimistic despite the recent happenings in Greece, which led to the negotiation of a third bail out for that country, and the high levels of unemployment in some of the European countries (Spain, for example, which has an unemployment rate of 22,4%). The greater availability of liquidity (resulting mainly from the Quantitative Easing programme 2 ), plus the increased volume of exports of the Member States and the economic upturn in China reveal confidence in expected growth for the second half of the year. On the domestic front, data from the Bank of Portugal for the first half of 2015 indicates a growth in GDP of 1,7% year on year, an increase in private consumption of 2,2% and an additional 4,8% in the value of exports. In terms of employability, there was also a slight drop 1 Bank of Portugal Eurosystem. (2015.07). Statistical Bulletin. (p. 23) 2 European Comission European Economic Forecast Spring 2015. Consolidated Management Report First Half 2015 José de Mello Saúde 5

(0,6 p.p.) in the unemployment rate, which stands at 13,4% (a number that is still above the average of the Euro Zone s 11,0% unemployment rate). 3 II Health Sector Environment In the first five months of the year in Portugal, there was a 6,8% increase in insurance premiums, for illnesses and occupational accidents, year on year 4. The latest data of the Portuguese Association of Insurers (APS), cumulative through May, points to premiums of 307 million euros in illnesses and 251 million euros in occupational accidents. In the same period, the costs of claims recorded an increase of 5,2% for illness and 4,0% for occupational accidents, standing at 189 and 217 million euros, respectively. Compared with the same period a year ago, the claims ratio for health insurance remained practically unchanged at 75,2%. In regard to occupational accidents, there was a drop of 2,6 p.p. in the claims ratio, registering 94,8%. In relation to the main public health subsystem (ADSE), the increase in the discount rate to 3,5% carried out in May 2014 resulted in a total income of 521 million euros, which was up by 82,4% over the previous year. An audit made by the Court of Auditors during the first half of 2015 found that in 2014 the total of discounts exceeded the sum expended by ADSE by 139 million euros. In light of the indicators given, the expectation of José de Mello Saúde for the second half of 2015 is an increase in the demand for its. It is in this context that the Group is increasing its capacity in Lisbon and expanding into other locations, such as Santarém and Viseu. 3 Bank of Portugal (June 2015) - Boletim Económico (Economic Bulletin). Available at www.bportugal.pt/pt- PT/EstudosEconomicos/Publicacoes/BoletimEconomico/Publicacoes/bol_econ_junho2015_p.pdf 4 Portuguese Association of Insurers. (2015.05). Management Indicators. Informação Transversal (Cross-sectional information) (p. 28) Consolidated Management Report First Half 2015 José de Mello Saúde 6

1.2 PROGRESS OF THE ACTIVITY I Relevant facts about the activity In 2015 José de Mello Saúde celebrates 70 years of the CUF brand in the provision of private healthcare in Portugal, through the CUF Infante Santo Hospital, which opened in 1945. In April, CUF Miraflores was inaugurated, the first clinic in the municipality of Oeiras, expanding the CUF network and bringing the company closer to the people. The first half of 2015 was marked by the signing of a contract for the acquisition of a new unit, the Private Hospital of Santarém. This health unit has 24 beds, 3 operating theatres and 21 consulting rooms, being equipped to serve a wide geographic area, in particular 9 neighbouring municipalities of the region with a population of over 190 thousand, (Santarém, Almeirim, Alpiarça, Cartaxo, Chamusca, Coruche, Golegã, Rio Maior and Salvaterra de Magos). José de Mello Saúde will initiate the management of the Private Hospital of Santarém in the second half of 2015. This will be the materialisation of one more important step in the strategy for growth and geographic expansion implemented by José de Mello Saúde. In the first half of this year, the activity of José de Mello Saúde registered a positive performance in all areas. Consultations increased 13,0% year on year, totalling 1.018.468. The number of urgencies rose by 5,8% and the number of patients operated grew 6,1%. Patients released from the installations totalled 38.368, representing an increase of 5,5% over the same period last year and the inpatient days rose 6,5% compared to 2014. Births totalled 3.585, which is 6,3% higher than the previous year. The revenue for Complementary Diagnostic Procedures and Treatment (MCDTs) rose 10,7%. Consolidated Management Report First Half 2015 José de Mello Saúde 7

II Variations in the economic and financial situation José de Mello Saúde s focus on its economic and financial performance has further contributed to the achieving of higher levels of profitability. Overall Performance Consolidated Income Statement (Million Euros) Amounts not audited 20141) 2014 Jun 2) 2015 Jun Recurring Jun Var % Operating Profit 254,6 254,6 277,2 8,9% Operating costs (223,5) (223,5) (241,1) 7,9% EBITDA 31,1 31,1 36,1 15,9% EBITDA Margin 12,2% 12,2% 13,0% 0,8 p.p. Depreciation and Amortization (8,7) (11,7) (12,4) 6,5% EBIT 22,4 19,4 23,6 21,5% EBIT Margin 8,8% 7,6% 8,5% 0,9 p.p. Financial results (3,8) (3,8) (5,3) 37,0% EBT 18,6 15,6 18,4 17,7% Tax (3,5) (3,5) (5,6) 59,3% Consolidated Net Profit for the Year 15,1 12,1 12,8 5,6% Net profit for the year for discontinued operations -0,8-0,8 Net profit attributable to non-controlling interests -0,3-0,3-0,2-43,4% Net profit attributable to JMS Shareholders 14,0 11,0 12,6 14,4% 1) An adjustment was made in the consolidation perimeter of 2014 (removing Dr Campos Costa Group, sold in January 2015 ), for the statement to be comparable with that of 2015. 2) The annulment of a provision of 2,97 million euros constituted in 2013 related to a tax discrepancy process with the tax authority was considered to be non-recurrent. Over the course of the first half 2015, most of the José de Mello Saúde units showed growth in comparison with the same period of the previous year. The turnover of the Group came to 277,2 million euros, representing a year-on-year increase of 8,9%. The activity of the private hospitals grew 12,9% and the public healthcare segment rose 4,0%. The EBITDA was 36,1 million euros (an increase of 15,9% year on year) and the margin of EBITDA was 13,0%, which was 0,8 p.p. higher than in the first half of 2014. This positive variation results from the overall growth of the activity, in conjunction with the improvements made in the operating efficiency. Consolidated Management Report First Half 2015 José de Mello Saúde 8

José de Mello Saúde recorded growth of 14,4% in its net profit attributable to the holders of the capital in relation to the first half of 2014, a figure that was 12,6 million euros as at 30 June 2015. (Million Euros) Amounts not audited 2014 Dec 2015 Jun Non-current assets 189,6 199,9 Working capital -32,7-19,0 Share capital 54,9 67,0 Net debt 102,0 113,9 Net debt/ebitda 1,8 1,6 The consolidated net debt rose by 11,9 million euros over the close of December 2014, due to the decrease in the cash balance resulting from the investment in expansion (acquisition of land at Parque das Nações and in Alcântara) and fulfilling the debt service. In May 2015 José de Mello Saúde issued a new bond loan, in the amount of 50 million euros, for a period of 6 years, at an interest rate indexed to the 6-month Euribor, plus 2,95%. The issue was placed with institutional investors, more than 10,0% being placed with international investors. It was approved for trading on the Euronext Lisbon regulated market and the Luxembourg Stock Exchange. In this emission the Banco Finantia and Banco Espírito Santo de Investimento acted as Co-Arrangers and Co-Lead Managers. The purpose of José de Mello Saúde in issuing this bond loan was to refinance its current activity and take on new investment opportunities, having significantly reduced its financing costs and extended the average maturity of its debt. The net debt/ebitda ratio was 1.6x, compared to the 1.8x recorded at the end of 2014. Consolidated Management Report First Half 2015 José de Mello Saúde 9

Operating Income by Segment (Million Euros) Amounts not audited 2014 Jun 2015 Jun Var % Consolidated Operating Income 254,6 277,2 8,9% Private HealthCare 154,7 174,6 12,9% Public HealthCare 102,3 106,4 4,0% Other Activities 2,5 3,9 59,4% Corporate Centre 14,3 30,9 115,6% Disposals -19,2-38,7 101,4% At the end of the first half of 2015, the operating income of the private healthcare segment totalled 174,6 million euros, which represented an increase of 12,9% over that of the same period of the previous year. This growth was driven by a generalised increase in the various areas of medical assistance (13% growth in the volume of consultations, 6% in urgent care, 6% in surgeries, 6% in births and 11% growth in exams and treatments). The income from the public healthcare segments accounts for 38,4% of the total income for the 6-month period, increasing by 4,0% over the 2014 figure. At the end of the first half de 2015, revenues were 106,4 million euros, which was an increase of 4,1 million euros year on year. It is worth pointing out the positive performance in the activity of the generality of areas of medical assistance at both public units in comparison with the previous year. Results by Segment Amounts not audited 2014 Jun Recurring 2015 Jun millions Margin millions Margin Var Margin Consolidated EBIT 19,4 7,6% 23,6 8,5% 0,9 p.p Private HealthCare 18,7 12,1% 20,9 12,0% -0,1 p.p Public HealthCare 2,2 2,2% 2,7 2,5% 0,3 p.p Other Activities 0,2 7,4% 1,2 29,5% 22,1 p.p Corporate Centre -1,6-11,3% -1,1-3,7% 7,6 p.p Consolidated Management Report First Half 2015 José de Mello Saúde 10

In the private healthcare segment, the increase in the activity year at year generated a growth in the operating income of around 12,0%, rising from 18,7 million euros in the first half of 2014 to 20,9 million euros on 30 June 2015. In the segment of public care, the variation in the EBIT margin was not significant, rising from 2,2% in the first half 2014 to 2,5% at the close of the first half of 2015. This increase is explained by the good performance of Hospital of Vila Franca de Xira. Financial Position (Million Euros) 2014 2015 2014 2015 (Amounts not audited) Dec Jun Dec Jun Tangible fixed assets 129,5 147,0 Capital and accessory contributions 67,4 67,4 Intangible fixed assets and 45,8 38,6 Reserves and retained earnings (12,4) (0,3) goodwill Others 14,4 14,3 Share Capital 54,9 67,0 Non-current Assets 189,6 199,9 Non-current bank loans 105,6 113,3 Inventories 7,2 8,3 Current bank loans 33,3 26,3 Customers 72,1 84,0 Non-current financial leases 70,9 66,9 Suppliers (75,0) (85,5) Current financial leases 12,4 11,4 Others (37,1) (25,8) Cash and Cash Equivalents (120,2) (104,1) Working Capital (32,7) (19,0) Net Debt 102,0 113,9 Non-current Assets + Working Capital 157,0 180,9 Share Capital + Net Debt 157,0 180,9 The working capital increased by 13,7 million euros, explained by the increase the customers and pending invoicing which was compensated in part by the increase in suppliers balance. Attention is called to the fact that extraordinary amounts were received from some payers at the end of 2014 have a positive influence on the customer balance on that date. The increase in suppliers is mainly justified by a change in internal procedures, which allowed the accrual of costs that were recorded to be recognised sooner as a balance of third parties and, as well, by the increase in activity. Consolidated Management Report First Half 2015 José de Mello Saúde 11

The share capital had a positive variation of 12,1 million euros compared with 2014, essentially because of the results of the first half of 2015. At the close of the first half of 2015, the consolidated gross financial debt fell 4,2 million euros in comparison with 2014, due to the fulfilment of the debt service, totalling 217,9 million euros. In the first half of 2015 there was a debt restructuring with the issuance in May of a new bond loan of 50 million euros. Following that restructuring of the financing sources, the bonds represented 45,4% of the total debt of JMS as can be seen in the following graphs: Commercial Paper 10.3% Loans 26.2% Bonds 22.1% Pledged Current Account 1.4% Factoring 2.2% Loans 8.5% Commercial Paper 9.7% Bonds 45.4% Financial Leases 37.9% Financial Leases 36.4% Dec-14 Jun-15 The consolidated net debt was to 113,9 million euros, representing an increase of 11,9 million euros compared with December 2014, explained by the negative variation in cash, resulting from the investments made in the first half of the year and the fulfilment of the debt service. 1.4 THE OUTLOOK FOR 2015 José de Mello Saúde celebrates the 70 years of CUF in 2015. These 70 years have provided José de Mello Saúde with a unique experience. Unique for the values that make up its culture, for the numbers that justify our leadership and unique for the history constructed over the decades and renewed on a daily basis. During 2015 José de Mello Saúde will continue to focus on the simultaneous execution of its two strategic drivers: Consolidated Management Report First Half 2015 José de Mello Saúde 12

Leverage and reinforce the foundation of assets and skills José de Mello Saúde is attentive to the sector s growth trends and will use its knowledge and skills to renew its value proposal, endowing it with elements that are highly innovative in terms of the offer and customer relations. The socio-economic changes already discussed at length, as well as continuous technological advances, specifically in the digital world, result in a customer who is older (but no less participative), with more morbidity (in terms of chronic illnesses), better informed and subsequently more demanding in terms of knowing about his health status and more demanding regarding the value proposition by the health provider. José de Mello Saúde defends a model of providing care incorporated in a new paradigm where the health of the patient is managed in an active, multidisciplinary way and in a digital context that goes beyond the physical environment. José de Mello Saúde believes that clinical quality is a central element of its value proposition. As such, it will continue to focus on guaranteeing that the clinical activity is carried out in accordance with the highest standards of quality, in a consistent manner. The constant concern for measuring clinical results has its maximum exponent in the outcomes project that was initiated in 2014 and which will continue over the next several years. This project seeks to measure changes in the health or in the quality of life of a person, as a result of a clinical episode. This is an innovative approach on an international level and translates into a functional improvement for the customer, evaluating the patient s ability to return to active life. Increase in the ability to meet the needs of the population The commitment of José de Mello Saúde to promote quality healthcare, accessible and close at hand, is materialized in the following projects that will be carried out in 2015: (i) consolidation of the operation of the 3 clinics opened in 2014 (Mafra, Sintra and São Domingos de Rana) and the clinic in Miraflores opened in 2015 (functioning in conjunction with the CUF Infante Santo Hospital); (ii) opening of another neighbourhood clinic in Oporto s area (which will function in conjunction with the CUF Porto Hospital); (iii) start managing the Private Hospital of Santarem; (iv) continuation of the expansion project for CUF Descobertas Consolidated Management Report First Half 2015 José de Mello Saúde 13

Hospital, which will give this unit a higher capacity for hospitalization and out-patient ; and (v) preparation for opening the CUF Viseu Hospital. 1.5 RISK MANAGEMENT The Risk Management Policy at José de Mello Saúde is aimed at guaranteeing the proper identification of the risks associated with the business engaged in, as well as adopting and implementing the measures needed to minimize the negative impacts that adverse developments of the factors underlying those risks may have on the Company s financial structure and its corresponding sustainability. Within the scope of the process of risk management, we identify below those we consider to be materially more relevant: Financial Risks The main financial risks identified are liquidity risk, credit risk and the risk of exposure to variations in interest rates. Managing the liquidity risk presupposes a permanent monitoring of the cash projections, in order to ensure the fulfilment of all the Group s responsibilities to the entities with which it has business relations. Through an active management of the business plan and the exhaustive mapping of the cash needs or future surpluses, it seeks also to reduce the credit risk, resorting to a permanent relationship with its financial partners. Managing interest rate risk seeks to minimize exposure to the variation in interest rates and their impact on Financial Statements within the established limits. Through the control policy adopted, we seek to select appropriate strategies for each business area, with the objective of guaranteeing that this risk factor does not negatively impact the corresponding operating capacity. On the other hand, the exposure to interest rate risk is also monitored, through the simulation of adverse scenarios, but with some degree of probability of occurring, which could have a negative effect on results. Consolidated Management Report First Half 2015 José de Mello Saúde 14

At the close of 2014, JMS had almost all its financing indexed at variable rates. With the objective of reducing the risk of exposure to variations in the interest rate, in May and June 2015, plain vanilla interest rate swaps were signed, which cover 75% of the amounts of the bond loans issued in June 2014 and May 2015. The contracted swaps respect the characteristics of the above-mentioned bond issues in order to be considered coverage products (same indexing, same period and interest payment dates). On the payment date for interest, JMS receives interest indexed at E6 for 75% of the bond capital and pays interest at a fixed rate on the same amount. With this operation, JMS has the risk of exposure to variations in interest rate on 35% of its gross debt covered by instruments that exchange a variable rate for a fixed rate. Operating risk José de Mello Saúde, as a market leader in providing healthcare, assumes the commitment to promote the guiding principles of sustainable development. The respect for these principles translates into a mandate to guarantee, at every time, the creation of value and therefore the satisfaction of our customers, employees, shareholders and third party entities with whom we work in conducting our business activity. Within the scope of this mandate, José de Mello Saúde uses an Integrated Management Model across all the units providing healthcare, based on seven pillars: A. Provision of healthcare The provision of healthcare in terms of best practices, excellence in technology and the most recent and proven scientific progress in the prevention, diagnosis and clinical treatment of illness, supported by the gathering of clinical results that are periodically monitored and revaluated in light of the objectives and defined methods. A model for providing care is based on the on-going search for solutions to meet our customers needs. Consolidated Management Report First Half 2015 José de Mello Saúde 15

B. Patient safety The maintenance of a transversal programme for the Management of Clinical and Non-Clinical Risk that establishes and prioritizes actions for identifying potential risks and preventing their occurrence is reinforced by the implementation of recommendations for good practices, in order to eliminate unnecessary damages resulting from providing healthcare. C. Security of Information The protection of information, as a support for the efficiency of the service provided to customers, is based on integrity, the availability of information systems and infrastructures, and the confidentiality of the data. D. Environmental Efficiency The identification of the environmental aspects resulting from providing healthcare enables the evaluation of impacts and the prioritisation of initiatives, with a view to the minimization and control of risks. The promotion of a sustainable use of natural resources, specifically energy and water, the prevention of pollution and the reduction, reuse and recycling of wastes produced. E. Safety and health at work The identification of dangers that professionals are exposed to, in terms of safety and health at work, with a view to the evaluation of risks and the prioritisation of initiatives, aiming at minimise and control of such risks. The prevention of the occurrence of injuries, incidents, accidents and occupational illnesses. F. Legal requirements The compliance of applicable legal requirements in effect, as well as other requirements deemed relevant. G. On-going improvement The establishment of a culture of on-going improvement that consolidates the management of processes and promotes the efficiency of the integrated management model. Consolidated Management Report First Half 2015 José de Mello Saúde 16

1.6 FINAL REMARKS Under the terms of Article 246(1)(c) of the Portuguese Securities Code and in compliance with the legal and statutory provisions, the Board of Directors presents the condensed financial statements and the interim management report for the first half of 2015, with the firm belief that, to the best of its knowledge, the information included herein has been drawn up in accordance with the applicable accounting norms, providing a true and appropriate picture of the assets and liabilities, of the financial situation and the results of the issuer, and that the management report truthfully provides the information required. Furthermore, under the terms and for the purposes of Article 8(3) of the Portuguese Securities Code, José de Mello Saúde, S.A. hereby informs that the report and consolidated accounts related to the first half of 2015 were not subject to review by an external auditor registered with the Portuguese Securities Market Commission. Consolidated Management Report First Half 2015 José de Mello Saúde 17

Board of Directors Salvador Maria Guimarães José de Mello Pedro Maria Guimarães José de Mello João Gonçalves da Silveira Rui Manuel Assoreira Raposo Maria Inês Rosa Dias Murteira Bleck Vasco Luís José de Mello Inácio António da Ponte Metello de Almeida e Brito Guilherme Barata Pereira Dias de Magalhães Luís Eduardo Brito Freixiel de Goes José Carlos Lopes Martins Paulo Jorge Cleto Duarte Lisbon, 11th August 2015 Consolidated Management Report First Half 2015 José de Mello Saúde 18

2. APPENDICE IN ACCORDANCE WITH ART 9 OF CMVM REGULATION 5/2008 Consolidated Management Report First Half 2015 José de Mello Saúde 19

Complying with Article 9, No.1, a) of the CMVM Regulation 5/2008 BALANCE AT 31/Dec/2014 ACQUISITIONS SALES BALANCE AT 30/Jun/2015 Quantity Quantity Amount Quantity Amount Quantity Salvador Maria Guimarães José de Mello Hospital CUF Descobertas, S.A. 236 236 Rui Manuel Assoeira Raposo Hospital CUF Descobertas, S.A. 130 130 Guilherme Barata Pereira Dias de Magalhães Hospital CUF Descobertas, S.A. 130 130 Vasco Luís José de Mello Hospital CUF Descobertas, S.A. 107 107 Maria Inês Rosa Dias Murteira Bleck Hospital CUF Descobertas, S.A. 77 77 Inácio António da Ponte Metello de Almeida e Brito Hospital CUF Descobertas, S.A. 92 92 José Carlos Lopes Martins Hospital CUF Descobertas, S.A. 56 56 Consolidated Management Report First Half 2015 José de Mello Saúde 20

3. CONSOLIDATED FINANCIAL STATEMENTS Consolidated Management Report First Half 2015 José de Mello Saúde 21

3.1 CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2015 JOSÉ DE MELLO SAÚDE, S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2015 AND 31 DECEMBER 2014 (Amounts in Euros) Notes 30-06-2015 31-12-2014 Non-current assets: Goodwill 5 and 11 25.773.427 31.926.000 Intangible assets 12.837.668 13.845.081 Tangible fixed assets 5 and 12 147.012.838 129.463.948 Investments in associates 5 3.805.815 4.033.056 Other investments 185.959 66.200 Deferred tax assets 1.982.331 1.982.331 Other non-current assets 8.296.945 8.296.945 Total non-current assets 199.894.982 189.613.560 Current assets: Inventories 8.260.696 7.248.759 Trade receivables and advances to suppliers 5 and 13 84.026.324 72.122.683 Other current debtors 9.577.234 8.661.415 State and other public entities 4.682.122 7.604.466 Other current assets 50.743.865 38.777.057 Cash and cash equivalents 14 104.118.661 120.173.190 Total current assets 261.408.902 254.587.571 Non-current assets held for sale 5-13.814.393 TOTAL ASSETS 5 461.303.884 458.015.524 Consolidated Management Report First Half 2015 José de Mello Saúde 22

JOSÉ DE MELLO SAÚDE, S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2015 AND 31 DECEMBER 2014 (Amounts in Euros) Notes 30-06-2015 31-12-2014 Equity: Share capital 15 53.000.000 53.000.000 Additional capital paid in 14.350.000 14.350.000 Legal reserve 16 3.430.501 2.495.813 Other reserves and retained earnings (16.332.831) (31.328.214) Consolidated net income 12.593.506 16.403.070 Equity attributable to shareholders 67.041.176 54.920.669 Non-controlling interests 3.582.833 3.577.537 Total equity 70.624.009 58.498.206 Non-current liabilities: Borrowings 17 113.289.079 105.649.914 Finance lease creditors 66.944.664 70.852.585 Employee benefits 18 1.954.488 1.954.488 Provisions 18 13.258.613 12.759.637 Non-current liabilities 195.446.845 191.216.624 Current liabilities: Borrowings 17 26.325.335 33.348.661 Finance lease creditors 11.413.530 12.353.257 Trade payables and advances from clients 5 and 19 85.481.740 74.964.533 State and other public entities 18.528.810 17.532.413 Other current creditors 7.030.601 5.965.654 Other current liabilities 20 46.453.015 52.542.322 Total current liabilities 195.233.031 196.706.839 Liabilities directly related to assets non-current held for sale 5-11.593.855 TOTAL LIABILITIES 5 390.679.876 399.517.318 TOTAL EQUITY AND LIABILITIES 461.303.884 458.015.524 The accompanying notes form an integral part of the consolidated statement of financial position for the period ended 30 June 2015. The Chartered Accountant The Board of Directors Consolidated Management Report First Half 2015 José de Mello Saúde 23

JOSÉ DE MELLO SAÚDE, S.A. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2015 AND 2014 (Amounts in Euros) Other Additional reserves and capital Legal Retained Net Non-controlling Share capital paid in reserve earnings profit interests Total Balance at 1 January 2014 53.000.000 14.350.000 1.560.932 (55.880.346) 12.620.342 3.227.233 28.878.160 Appropriation of consolidated net profit for 2013: Transfer to retained earnings - - 934.881 (2.908.835) 1.973.955 - - Dividends paid out - - - - (606.607) (89.862) (696.469) Changes in non-controlling interests resulting their attributing to shareholders - - - - - - - Changes resulting from change of equity in associates - - - - - - - Changes in non-controlling interests resulting from changes in consolidation perimeter - - - - - - - Acquisition of non-controlling interests - - - - - - - Others - - - - 7.091 11.866 18.957 Consolidated net income for the semester of 2014 - - - 13.994.780-323.202 14.317.982 Other items of Comprehensive Income: Changes in the equity of associates - - - - - - - Fair value of financial assets available for sale - - - - - - - Total comprehensive income for the semester - - - 13.994.780-323.202 14.317.982 Balance at 30 June 2014 53.000.000 14.350.000 2.495.813 (44.794.401) 13.994.780 3.472.439 42.518.631 Balance at 1 January 2015 53.000.000 14.350.000 2.495.813 (31.328.214) 16.403.070 3.577.537 58.498.206 Appropriation of consolidated net profit for 2014: Transfer to retained earnings - - 934.688 15.468.381 (16.403.070) - 0 Dividends paid out - - - (754.833) - (175.541) (930.373) Changes in the fair value of financial instruments - - - (454.101) - - (454.101) Changes resulting from change of equity in associates - - - - - - - Changes in non-controlling interests resulting from changes in consolidation perimeter - - - 733.927 - - 733.927 Acquisition of non-controlling interests - - - - - - - Others - - - 2.008 - (2.012) (4) Consolidated net income for the semester of 2015 - - - - 12.593.506 182.848 12.776.354 Other items of Comprehensive Income: Changes in the equity of associates - - - - - - - Fair value of financial assets available for sale - - - - - - - Total comprehensive income for the semester - - - - 12.593.506 182.848 12.776.354 Balance at 30 June 2015 53.000.000 14.350.000 3.430.501 (16.332.831) 12.593.506 3.582.833 70.624.009 The accompanying notes form an integral part of the consolidated statement of financial position for the period ended 30 June 2015. The Chartered Accountant The Board of Director Consolidated Management Report First Half 2015 José de Mello Saúde 24

JOSÉ DE MELLO SAÚDE, S.A. CONSOLIDATED INCOME AND OTHER COMPREHENSIVE INCOME STATEMENT AS OF 30 JUNE 2015 AND 2014 (Amounts in Euros) Notes 30-06-2015 30-06-2014 Operações em continuação: Operating income: Sales and rendered 5 and 6 273.903.426 251.819.923 Other operating income 5 3.289.684 2.791.381 Total operating income 277.193.110 254.611.303 Operating costs: Cost of sales (52.010.639) (47.144.154) External supplies and 7 (103.049.765) (94.799.766) Personnel costs 8 (83.428.130) (80.272.358) Amortisations and depreciations 5 (10.939.017) (10.516.231) Provisions and impairment losses, net 5 (1.508.797) 1.796.949 Other operating costs (2.632.542) (1.260.959) Total operating costs 5 (253.568.889) (232.196.519) Operating profit 5 23.624.221 22.414.784 Financial expenses and losses 5 and 9 (5.842.551) (4.865.052) Financial income and gains 5 and 9 582.031 1.001.574 Profit/loss of associates 5 and 9 57.523 32.086 Profit/loss of investment activities 5 and 9 (47.404) - Financial results 5 (5.250.401) (3.831.392) Pre-tax profit 5 18.373.820 18.583.392 Income tax 5 (5.597.466) (3.494.695) Consolidated net profit for the year 12.776.354 15.088.697 Discontinued operations: Net profit for the year of discontinued operations 5 - (770.714) Net profit for the year attributable to non-controlling interests 5 182.848 323.202 Net profit for the year attributable to equity holders 5 12.593.506 13.994.780 Other items of Comprehensive Income: Changes in the equity of associates - - Fair value of financial assets available for sale - - - - Consolidated comprehensive income 12.776.354 14.317.982 Comprehensive income for the year attributable to non-controlling interests 182.848 323.202 Comprehensive income for the year attributable to equity holders 12.593.506 13.994.780 Earnings per share: Basic 10 1,19 1,32 Diluted 10 1,19 1,32 The accompanying notes form an integral part of the consolidated statement of financial position for the period ended 30 June 2015. The Chartered Accountant The Board of Director Consolidated Management Report First Half 2015 José de Mello Saúde 25

JOSÉ DE MELLO SAÚDE, S.A. CONSOLIDATED CASH FLOW STATEMENTS AS OF 30 JUNE 2015 AND 2014 (Amounts in Euros) 30-06-2015 30-06-2014 OPERATING PROFIT Cash receipts from clients 251.245.593 229.337.301 Cash paid to suppliers (153.956.743) (135.635.007) Cash paid to employees (81.192.396) (76.309.006) Other cash receipts/payments relating to operating activities (3.695.676) (1.216.273) Net cash from operating activities (1) 12.400.778 16.177.015 INVESTING ACTIVITIES: Cash receipts relating to: Financial assets and other investments 6.176.845 - Tangible fixed assets 29.882 23.273 Interest and similar income 333.753 1.600.213 Dividends - 248.113 6.540.480 1.871.599 Payments regarding: Financial assets and other investments - (85.000) Tangible fixed assets (27.481.780) (2.726.923) Intangible assets (513.438) (544.684) (27.995.218) (3.356.607) Net cash from investment activities (2) (21.454.738) (1.485.008) FINANCING ACTIVITIES: Cash receipts relating to: Borrowings 121.020.000 60.470.000 Others 352.829 98.656 121.372.829 60.568.656 Payments regarding: Borrowings (113.966.142) (19.859.828) Payment of finance lease liabilities (6.343.870) (4.967.904) Interest and similar expenses (7.088.671) (5.419.142) Dividends paid and profit distributed (167.786) (776.455) Others (806.930) - (128.373.398) (31.023.328) Net cash from financial activities (3) (7.000.569) 29.545.328 Changes in cash and equivalents (4)=(1)+(2)+(3) (16.054.530) 44.237.334 Cash and cash equivalents at the start of the period 120.173.190 91.600.330 Cash and cash equivalents at the end of the period 104.118.661 135.837.664 The accompanying notes form an integral part of the consolidated statement of financial position for the period ended 30 June 2015. The Chartered Accountant The Board of Director Consolidated Management Report First Half 2015 José de Mello Saúde 26

3.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2015 1. INTRODUCTION (Amounts in Euros) José de Mello Saúde, S.A., formerly known as José de Mello Saúde II, S.A., ( Company or JMS ) has its registered office in Lisbon. It was incorporated in December 1992 with the core business of the provision of healthcare, particularly in the area of private healthcare, publicprivate partnerships, the provision of in the area of medicine, occupational health and hygiene, and also providing home-based healthcare. The corporate universe of JMS ("Group" or "JMS Group ) is formed of the subsidiaries, associates and jointly controlled entities described in Note 4. The Company's share capital, as stated in Note 15, is majority-owned by José de Mello, SGPS, S.A. its parent company and, consequently, the operations and transactions of the Company (Note 21) are influenced by the decisions of the José de Mello, SGPS, S.A. Group. 2. ACCOUNTING POLICIES 2.1. Basis of presentation The accompanying financial statements were prepared in accordance with provisions in IAS 34 Interim Financial Report; accordingly, they should be read jointly with the financial statements for the year ended at 31 December 2014. 2.2. Accounting policies Accounting policies adopted are consistent with those followed in the preparation of the financial statements for the year ended as of 31 December 2014 and referred in respective notes. 2.3. Consolidation principles Consolidation principles adopted are consistent with those followed in the preparation of the financial statements for the year ended as of 31 December 2014 and referred in respective notes. Consolidated Management Report First Half 2015 José de Mello Saúde 27

3. CHANGES IN POLICIES, ESTIMATES AND ERRORS During the semester ended 30 June 2015 there were no voluntary accountancy policy changes from those considered in the preparation of the financial information regarding the 2014 financial year. 4. COMPANIES INCLUDED IN THE CONSOLIDATION 4.1. Companies consolidated by the full consolidation method The consolidation included, through full consolidation, the parent company and the following subsidiaries in which control is held: Registered Effective Company office percentage Business activity Holdings and shared : José de Mello Saúde, S.A. Lisboa Parent Purchase and sale of equipment and provision of management and consultancy VALIR - Sociedade Gestora de Participações Sociais, S.A. Porto 92,9332% Management of shareholdings Vramondi International BV Roterdão 99,9996% Management of shareholdings JMS - Prestação de Serviços Administrativos e Operacionais, ACE Oeiras 98,9837% JMS - Prestação de Serviços de Saúde, ACE Oeiras 99,1057% José de Mello Saúde - Serviços de Logística, ACE Oeiras 99,2174% Academia CUF, Sociedade Unipessoal, Lda. Oeiras 100% Provision of administrative and financial management Provision of administrative and financial management Provision of operating (catering, cleaning and maintenance) Provision of training in the nursing and clinical field Private healthcare : Hospital CUF Descobertas, S.A. Oeiras 99,9293% Management and operation of a hospital Hospital CUF Infante Santo, S.A. Oeiras 100% Management and operation of a hospital Hospital CUF Porto, S.A. Oeiras 100% Management and operation of a hospital Hospital CUF Torres Vedras, S.A. Oeiras 100% Management and operation of a hospital Hospital CUF Cascais, S.A. Oeiras 100% Management and operation of a hospital Hospital CUF Viseu, S.A. Viseu 100% Management and operation of a hospital Clínica CUF Alvalade, S.A. Lisboa 100% Provision of medical and nursing Clínica CUF Belém, S.A. Lisboa 62,8069% Provision of medical and nursing Clínica de Serviços Médicos Computorizados de Belém, S.A. Lisboa 33,6490% Provision of medical and nursing Instituto CUF - Diagnóstico e Tratamento, S.A. Matosinhos 92,9332% Operation of health unit HD Medicina Nuclear, S.A. Lisboa 69,9465% Ecografia de Cascais, Lda. Cascais 99,9996% Nova Imagem - Centro Radiodiagnóstico, S.A. Oeiras 99,9996% Provision of diagnosis and therapy in the nuclear medicine field Operation of a diagnosis and radiology medical centre Operation of a diagnosis and radiology medical centre Consolidated Management Report First Half 2015 José de Mello Saúde 28

Registered Effective Company office percentage Business activity Public healthcare : PPPS - Parcerias Públicas Privadas na Saúde, SGPS, S.A. Lisboa 100% Promotion and operation of public healthcare units Escala Braga - Sociedade Gestora do Estabelecimento, S.A. Braga 99,9857% Management and operation of a public hospital Escala Vila Franca Sociedade Gestora do Estabelecimento, S.A. V.F. de Xira 99,9809% Management and operation of a public hospital Others: Sagies - Segurança, Higiene e Saúde no Trabalho, S.A. Oeiras 70,4998% Loja Saúdecuf - Produtos e Serviços de Saúde e Bem Estar, S.A. Beso Serviços de Comodidade e Conveniência, Lda. Oeiras 100% IMO HEALTH - Investimentos Imobiliários, Unipessoal, Lda. Lisboa 100% Provision of external of occupational safety, hygiene and health Oeiras 100% Sale of parapharmaceutical products Provision of client support to healthcare units Buying and selling eal estate, exchange and renting property 4.2. Associates The associates registered through the equity method as of 30 June 2015 are the following: Registered Effective Company office percentage Business activity Centro Gamma Knife-Radiocirurgia, S.A. Lisboa 34% Operation of radiosurgery treatment units Escala Braga - Sociedade Gestora do Edifício, S.A. Braga 33,995% Management and operation of Braga hospital Escala Parque Gestão de Estacionamento, S.A. Sintra 33,995% Management, operation and maintenance of car parks 5. BUSINESS SEGMENTS The main activities undertaken by the Group are classified into the following business segments: - Private healthcare ; - Public healthcare ; - Holdings and shared ; and, - Others The Private healthcare business area includes the following units: - five hospitals providing a total of 503 inpatient beds; 324 consulting rooms; 28 operating theatres, 6 delivery rooms, and a vast offer of specialty consultations, exams, dental care, check-ups, physical medicine and rehabilitation; Consolidated Management Report First Half 2015 José de Mello Saúde 29

- two outpatient units offering specialty consultations, exams, dental care, check-ups, physical medicine and rehabilitation and also the possibility of carrying out minor surgery; - one high technology diagnosis and treatment unit including 48 consulting rooms; and, - three clinical imaging units with a wide range of exams (bone densitometry, ultrasound scan, mammography, radiology, magnetic resonance imaging and computed tomography). The Public Healthcare business area results from two partnership contracts with the Portuguese State, in which the Group manages two hospitals: - Braga Hospital resulting from a public-private partnership established in December 2008, the new Braga Hospital opened on 9 May 2011. It has a total hospital floor area of 102 000 m 2, 702 beds and 63 consulting rooms, serving a population of 1.2 million inhabitants in the Braga and Viana do Castelo districts; and, - Vila Franca de Xira Hospital the Escala Vila Franca de Xira consortium took over the management of Reynaldo dos Santos Hospital on 1 June 2011, being responsible for the entire operations of this hospital which belongs to the Portuguese National Health Service. The management of the previous hospital infrastructure was assured for the period of 2 years. In April 2013, the new Vila Franca de Xira Hospital opened, with a gross construction area of 49 000 m 2, 278 inpatient beds and 33 consulting rooms, serving about 235,000 inhabitants of the Alenquer, Arruda dos Vinhos, Azambuja, Benavente and Vila Franca de Xira municipalities. The Holdings and shared segment includes, besides the management of shareholdings, seven entities providing management, training, accountancy, consultancy, cleaning and maintenance, and also information systems, operational, administrative, medical equipment hire, negotiation and procurement. It should be also noted that the Group has units that (i) provide safety, hygiene and health at work that are essential to monitor employees health and environmental work conditions, (ii) provide customised home healthcare, namely in the areas of gerontology, mother and child care, convalescence care and palliative care, (iii) marketing of parapharmaceuticals, which include dermocosmetics, personal hygiene products, baby Consolidated Management Report First Half 2015 José de Mello Saúde 30

products, orthopaedic products, food products and nutritional supplements, dietetic foods, natural products and pharmaceutical products not requiring medical prescription and (iv) purchase, sale, management and lease of hospital premises. The amounts regarding these activities are included in the Others segment. The main information regarding income for the semesters ended as of 30 June 2015 and 2014 in the different business segments is as follows: 2015 Public healthcare Private healthcare Holdings and shared Others Eliminations Consolidated Services rendered External clients 105.398.794 166.966.989 44.301 1.493.343-273.903.426 Intersegment - 4.626.538 17.646.510 2.410.011 (24.683.060) - Total sales and rendered 105.398.794 171.593.527 17.690.811 3.903.354 (24.683.060) 273.903.426 Other operating income 981.449 3.051.358 13.240.079 40.193 (14.023.395) 3.289.684 Operating costs (103.712.396) (153.720.491) (32.061.536) (2.780.921) 38.706.455 (253.568.889) Segment operating profit 2.667.848 20.924.393 (1.130.647) 1.162.626-23.624.221 Financial expenses and losses (533.368) (2.302.589) (1.899.073) (1.107.520) - (5.842.551) Financial income and gains 971 369.455 141.483 70.122-582.031 Profit/loss of associates - 57.523 - - - 57.523 Profit/loss of investment activities - - (47.404) - - (47.404) Financial results (532.397) (1.875.611) (1.804.994) (1.037.398) - (5.250.401) Pre-tax profit 2.135.451 19.048.782 (2.935.641) 125.228-18.373.820 Income tax (823.669) (5.247.730) 556.584 (82.651) - (5.597.466) Net profit for the year of discontinued operations - - - - - - Profit attributable to non-controlling interests 218 173.099 7.084 2.447-182.848 Net profit for the year attributable to shareholders 1.311.564 13.627.953 (2.386.140) 40.130-12.593.506 Intersegment transactions are carried out at market prices, on a similar base to third-party transactions. Other information: Public healthcare Private healthcare Holdings and shared Others Eliminations Consolidated Fixed capital expenses (Note 12) 1.371.071 2.184.651 423.935 22.234.678-26.214.334 Depreciation and amortisation in profit/loss (5.023.726) (4.494.407) (576.052) (844.833) - (10.939.017) Provisions and impairment losses, net (632.797) (864.000) - (12.000) - (1.508.797) Consolidated Management Report First Half 2015 José de Mello Saúde 31

Assets and liabilities per business segment and corresponding reconciliation with the consolidated total at 30 June 2015 are as follows: Public healthcare Private healthcare Holdings and shared Others Eliminations Consolidated Assets by segments Goodwill 15.896 20.517.805 5.226.465 13.261-25.773.427 Tangible fixed assets 23.249.409 34.415.463 3.885.004 85.462.962-147.012.838 Trade receivables and advances to suppliers 17.463.602 70.497.073 22.673.682 1.646.986 (28.255.019) 84.026.324 Investments in associates - 1.587.562 2.218.252 - - 3.805.815 Other assets by segments 72.109.910 41.029.346 133.529.869 8.470.604 (54.454.249) 200.685.480 Total consolidated assets 112.838.817 168.047.249 167.533.273 95.593.813 (82.709.268) 461.303.884 Liabilities Borrowings 10.000.000 24.996.334 104.618.079 - - 139.614.414 Trade payables and advances from clients 64.336.260 44.998.062 3.886.691 404.310 (28.143.583) 85.481.740 Other liabilities by segments 55.506.466 67.011.220 15.968.536 81.663.185 (54.565.685) 165.583.721 Total consolidated liabilities 129.842.727 137.005.616 124.473.307 82.067.495 (82.709.268) 390.679.876 2014 Public healthcare Private healthcare Holdings and shared Others Eliminations Consolidated Services rendered External clients 100.787.667 148.778.930 63.807 2.189.519-251.819.923 Intersegment - 4.671.139 14.273.811 273.887 (19.218.837) - Total sales and rendered 100.787.667 153.450.069 14.337.618 2.463.406 (19.218.837) 251.819.923 Others costs and operating profit (98.586.818) (131.790.893) (15.964.793) (2.281.472) 19.218.837 (229.405.139) Segment operating profit 2.200.848 21.659.176 (1.627.175) 181.934-22.414.784 Financial expenses and losses (521.452) (3.778.482) (559.645) (5.473) - (4.865.052) Financial income and gains 11.292 984.346 3.303 2.632-1.001.574 Profit/loss of associates - 32.086 - - - 32.086 Profit/loss of investment activities - - - - - - Financial results (510.159) (2.762.050) (556.341) (2.841) - (3.831.392) Pre-tax profit 1.690.689 18.897.126 (2.183.516) 179.093-18.583.391 Income tax (645.183) (4.919.088) 2.116.942 (47.366) - (3.494.695) Net profit for the year of discontinued operations - (770.714) - - - (770.714) Profit attributable to non-controlling interests 155 313.765 (3.741) 13.024-323.202 Net profit for the year attributable to shareholders 1.045.351 12.893.559 (62.833) 118.702-13.994.780 Intersegment transactions are carried out at market prices, on a similar base to third-party transactions. Consolidated Management Report First Half 2015 José de Mello Saúde 32

Other information: Public healthcare Private healthcare Holdings and shared Others Eliminations Consolidated Fixed capital expenses 579.925 2.755.585 294.521 5.077-3.635.108 Depreciation and amortisation in profit/loss (5.092.710) (4.895.904) (503.678) (23.938) - (10.516.231) Provisions and impairment losses, net (243.248) 2.052.197 - (12.000) - 1.796.949 Assets and liabilities per business segment and corresponding reconciliation with the consolidated total at 31 December 2014 are as follows: Public healthcare Private healthcare Holdings and shared Others Discontinued activities Eliminations Consolidated Assets by segments Goodwill 15.896 31.023.347 6.000 880.757 - - 31.926.000 Tangible fixed assets 25.556.085 37.931.178 3.312.742 62.663.943 - - 129.463.948 Trade receivables and advances to suppliers 13.131.886 64.639.816 20.430.672 1.923.559 - (28.003.251) 72.122.683 Investments in associates - 1.660.670 2.372.386 - - - 4.033.056 Other assets by segments 62.804.546 76.604.419 86.623.105 7.410.191 - (26.786.818) 206.655.444 Non-current assets held for sale - - - - 13.814.393-13.814.393 Total consolidated assets 101.508.413 211.859.430 112.744.905 72.878.450 13.814.393 (54.790.068) 458.015.524 Liabilities Borrowings 4.525.653 67.794.617 66.678.304 - - - 138.998.575 Trade payables and advances from clients 58.966.196 37.238.294 6.164.840 601.619 - (28.006.417) 74.964.533 Other liabilities by segments 56.349.756 71.073.142 15.576.272 57.811.036 - (26.849.850) 173.960.355 Non-current liabilities held for sale - - - - 11.593.855-11.593.855 Total consolidated liabilities 119.841.605 176.106.053 88.419.417 58.412.655 11.593.855 (54.856.268) 399.517.318 6. SALES AND SERVICES RENDERED Sales and rendered for the semesters ended as of 30 June 2015 and 2014 are made as follows: 30-06-2015 30-06-2014 Sales 228.825 236.464 Services rendered: Hospital activity 158.325.838 120.093.910 Public health service 97.563.508 93.580.536 Clinical activity 16.027.919 35.891.245 Occupational Hygiene, Safety and Medicine 1.261.695 1.222.801 Home Services 447.536 731.160 Others 48.106 63.807 273.903.426 251.819.923 Consolidated Management Report First Half 2015 José de Mello Saúde 33

7. EXTERNAL SUPPLIES AND SERVICES External supplies and for the semesters ended as of 30 June 2015 and 2014 are made as follows: 30-06-2015 30-06-2014 Fees 60.473.478 53.820.426 Subcontracts 11.699.404 12.016.553 Specialised work 10.612.971 9.919.913 Rents and leases 7.052.601 8.155.273 Maintenance and repair 3.658.850 2.986.090 Electricity 2.983.713 2.865.190 Fuel 1.136.688 1.291.264 Communications 1.170.499 902.146 Advertising 1.079.054 255.706 Insurance 521.070 448.018 Water 515.830 447.084 Tools and utensils 511.299 329.598 Collection of waste 556.065 470.827 Air conditioning 330.758 296.298 Travel and accommodation 219.955 142.857 Road tolls 99.490 87.229 Office material 96.711 128.792 Articles for free distribution 80.094 13.503 Litigation and notary public fees 66.627 67.362 Cleaning, hygiene and comfort 40.146 42.761 Books and technical documentation 23.331 4.187 Transport of goods 4.145 4.277 Other supplies and 116.987 104.413 103.049.765 94.799.766 8. PERSONNEL COSTS The personnel costs for the semesters ended as of 30 June 2015 and 2014 were as follows: 30-06-2015 30-06-2014 Wages 61.397.982 59.249.925 Wage-related expenses 14.347.397 13.909.267 Social security contributions 3.589.924 3.380.629 Insurance 1.151.651 1.119.283 Indemnities 274.402 414.072 Other personnel costs 2.666.775 2.199.182 83.428.130 80.272.358 Consolidated Management Report First Half 2015 José de Mello Saúde 34

Other personnel costs include expenditure on vocational training, medical care and food allowance. 9. FINANCIAL RESULTS The financial results for the semesters ended as of 30 June 2015 and 2014 is broken down as follows: 30-06-2015 30-06-2014 Financial expenses and losses: Interest expenses (4.612.784) (3.203.876) Bank fees and (1.229.740) (1.661.125) Other financial losses and expenses (28) (51) (5.842.551) (4.865.052) Financial income and gains: Interest earned 581.372 1.001.531 Other financial income and gains 659 43 582.031 1.001.574 Profit/loss of associates: Losses in associates and other investments - - Gains on associates and other investments 57.523 32.086 Gains/losses on the sale of associated companies (Note 22) - - 57.523 32.086 Gains /(Losses) relating to investment activities: Dividends - - Gains/losses on assets available for sale (47.404) - (47.404) - 10. EARNINGS PER SHARE The basic and diluted earnings per share for the semesters ended 30 June 2015 and 2014 was calculated considering the following amounts: Basic earnings per share 30-06-2015 30-06-2014 Profit for the purpose of calculating basic earnings per share (profit for the semester) 12.593.506 13.994.780 Weighted average number of shares for calculation of basic earnings per share 10.600.000 10.600.000 Net basic earnings per share (euro) 1,19 1,32 Consolidated Management Report First Half 2015 José de Mello Saúde 35

At 30 June 2015 and 2014 there were no dilutive effects of earnings per share, so the diluted earnings per share are equal to basic earnings per share. 11. GOODWILL The changes in the values of goodwill in the semester ended 30 June 2015 were as follows: Public healthcare Private healthcare Holdings and shared Others Balance at 31 December 2014 15.896 31.036.608 6.000 867.496 31.926.000 Transfers - 867.496 - (867 496) - Changes in consolidation perimeter - (6.152.573) - - (6.152.573) Additions - - - - - Disposals - - - - - Balance at 30 June 2015 15.896 25.751.531 6.000-25.773.427 Total At 30 June 2015 there existed no impairment losses regarding goodwill. The amount of goodwill at 30 June 2015 and 31 December 2014, relate to the following entities: Company Segment (Note 5) 30-06-2015 31-12-2014 Dr. Campos Costa - Consultório de Tomografia Computorizada, S.A. Private healthcare - 6.152.573 Hospital CUF Infante Santo, S.A. Private healthcare 12.485.699 11.791.702 Nova Imagem - Centro Radiodiagnóstico, S.A. Private healthcare 7.269.220 7.269.220 VALIR - Sociedade Gestora de Participações Sociais, S.A. Private healthcare 5.220.465 5.220.465 Hospital CUF Cascais, S.A. Private healthcare 482.166 482.166 Hospital CUF Porto, S.A. Private healthcare 173.499 - Hospital CUF Descobertas, S.A. Private healthcare 97.265 97.265 Ecografia de Cascais, Lda. Private healthcare 9.119 9.119 Clínica de Serviços Médicos e Computorizados de Belém, S.A. Private healthcare 837 837 Escala Vila Franca Sociedade Gestora do Estabelecimento, S.A. Public healthcare 15.896 15.896 S.P.S.D. Sociedade Portuguesa de Serviços Domiciliários, S.A. Others - 867.496 IMO HEALTH - Investimentos Imobiliários, Unipessoal, Lda. Others 13.261 13.261 Vramondi International BV Holding and shared Services 6.000 6.000 25.773.427 31.926.000 Impairment tests were made using the following assumptions and methods: - The recoverable amounts of cash generating units were determined based on the value in use methodology. The use of this method requires the estimate of future cash flows arising from the operations of each cash generating unit and choice of an appropriate discount rate; Consolidated Management Report First Half 2015 José de Mello Saúde 36

- The valuations are supported by past results and future prospects of development of the markets in which the Group operates. Five year projections of future cash flows for each of the businesses have been prepared in accordance with the plans defined by the Board of Directors. Evaluations were made concerning the most relevant subsidiaries, which concluded that no impairment signs could be found in relation to the recognised goodwill. 12. TANGIBLE FIXED ASSETS The changes in the value of tangible fixed assets as well as the corresponding depreciation and accumulated impairment losses, in the semester ended 30 June 2015, were as follows: 30-06-2015 Land Buildings and Other Tangible and natural other Basic Office tangible assets resources constructions equipment equipment assets in progress Total Gross assets: Balance at 1 January 2015 3.393.922 105.545.111 131.691.232 19.550.870 129.723 1.491.848 261.802.705 Additions 21.999.643 1.001.166 2.519.790 486.434-207.301 26.214.334 Transfers - 182.850 791.546 187 (187) (974.396) - Balance at 30 June 2015 25.393.565 106.729.126 135.002.569 20.037.491 129.536 724.753 288.017.039 Depreciation and accumulated impairment losses: Balance at 1 January 2015 - (22.118.880) (93.874.750) (16.233.979) (111.149) - (132.338.758) Settlements - 15.030 667.748 4.117 - - 686.896 Depreciation - (2.522.374) (6.069.446) (758.789) (1.730) - (9.352.339) Transfers - - - (187) 187 - - Balance at 30 June 2015 - (24.626.224) (99.276.448) (16.988.837) (112.692) - (141.004.201) Net value 25.393.565 82.102.902 35.726.121 3.048.653 16.844 724.753 147.012.838 13. TRADE RECEIVABLES AND ADVANCES TO SUPPLIERS The trade receivables and advances to suppliers item was broken down as follows at 30 June 2015 and 31 December 2014: Gross value 30-06-2015 31-12-2014 Impairment Impairment losses losses (Note 18) Net value Gross value (Note 18) Net value Trade receivables, current account 80.944.123 (359.526) 80.584.597 67.306.847 (282.237) 67.024.610 Doubtful receivables 13.402.317 (9.983.445) 3.418.872 14.148.870 (9.073.652) 5.075.218 Advances to suppliers 22.855-22.855 22.855-22.855 94.369.296 (10.342.971) 84.026.324 81.478.572 (9.355.889) 72.122.683 Consolidated Management Report First Half 2015 José de Mello Saúde 37

The balances in the statement of financial position are net of impairment losses on trade payables balances. The Board of Directors believes that the carrying value of receivables is close to its fair value. The Group has no significant concentration of credit risk, as the risk is diluted over a vast range of clients. 14. CASH AND CASH EQUIVALENTS This item was broken down as follows at 30 June 2015 and 31 December 2014: The Cash and cash equivalents item includes the amounts of cash, bank deposits immediately redeemable, cash investments and term deposits maturing in under three months, and for which there is insignificant risk of a change in value. 30-06-2015 31-12-2014 Cash 1.601.274 1.169.744 Current accounts 23.435.590 19.562.480 Term deposits 16.573.639 36.885.404 Other cash investments 62.508.158 62.555.562 104.118.660 120.173.190 Descobertos bancários (Note 17) (1.310.148) (1.001.933) 102.808.512 119.171.257 15. SHARE CAPITAL The share capital at 30 June 2015 amounted to EUR 53.000.000, fully subscribed and paid-up, and it was represented by 10.600.000 shares each with the nominal value of five euros. The share capital was held by the following entities at 30 June 2015: Entity Shares Percentage José de Mello, SGPS, S.A. 6.980.100 65,85% Fundação Amélia da Silva de Mello 439.900 4,15% Farminveste - Investimentos, Participações e Gestão, S.A. 3.180.000 30,00% 10.600.000 100,00% Consolidated Management Report First Half 2015 José de Mello Saúde 38

16. LEGAL RESERVE Commercial legislation establishes that the Company must reinforce the legal reserve by at least 5% of the annual net profit until this reserve equals at least 20% of the share capital. This reserve is not available for distribution to shareholders, however it may be used to absorb losses once the other reserves have been exhausted, or to increase the share capital. 17. LOANS Borrowings at 30 June 2015 and 31 December 2014 were as follows: 30-06-2015 31-12-2014 Non-current liabilities: Bond loans 98.731.471 49.057.133 Other bank loans 14.557.608 47.639.954 Commercial paper - 8.952.826 113.289.079 105.649.914 Current liabilities: Commercial paper 21.000.000 13.975.653 Other bank loans 4.015.186 10.455.253 Fnding by means of factoring with recourse - 4.915.821 Secured accounts - 3.000.000 Bank overdrafts 1.310.148 1.001.933 26.325.335 33.348.661 139.614.414 138.998.575 The bond loan relate to the following issues: Obrigações JOSÉ DE MELLO SAÚDE, S.A. 2014/2019 Total loan amount: EUR 50.000.000 Nominal value: EUR 10.000 per bond Maturity: 9 June 2019 Interest rate: 6-month Euribor plus 3,875% Obrigações JOSÉ MELLO SAÚDE 2015/2021 Total loan amount: EUR 50.000.000 Nominal value: EUR 10.000 per bond Maturity: 17 May 2021 Interest rate: 6-month Euribor plus 2,95% Consolidated Management Report First Half 2015 José de Mello Saúde 39

Bank loans were broken down as follows at 30 June 2015 and 31 December 2014: 30-06-2015 31-12-2014 Company Current Non-current Current Non-current Hospital CUF Porto, S.A. - - - 12.428.756 Hospital CUF Porto, S.A. 2.538.152 10.715.751 - - Hospital CUF Infante Santo, S.A. - - - 11.845.386 Hospital CUF Descobertas, S.A. - - - 11.773.332 Hospital CUF Torres Vedras, S.A. 1.135.029 3.841.857 1.162.912 4.310.772 Hospital CUF Cascais, S.A. - - 1.168.987 3.199.839 José de Mello Saúde, S.A. 341.370-847.445 2.370.899 Hospital CUF Descobertas, S.A. 635-2.280.854 - Hospital CUF Infante Santo, S.A. - - 2.287.119 - Hospital CUF Porto, S.A. - - 2.210.305 - Hospital CUF Descobertas, S.A. - - 248.815 855.485 Hospital CUF Infante Santo, S.A. - - 248.815 855.485 4.015.186 14.557.608 10.455.253 47.639.954 18. PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES Provisions The changes occurred in provisions in the semester ended on 30 June 2015 were as follows: Provisions Employee Environmental benefits Taxes issues Others Total Balance at 1 January 2015 1.954.488 390.811 5.000 12.363.825 12.759.637 Increase - - - 521.714 521.714 Use - - - (22.737) (22.737) Balance at 30 June 2015 1.954.488 390.811 5.000 12.862.802 13.258.613 The Others item mainly includes provisions for risks arising from the business of providing hospital. It also includes a provision intended to address the liability for replacing equipment as established in Annex V of the Management and operation contract of Vila Franca Hospital; this provision was set up against intangible assets following the transfer to the new facility, which was when new capacity was acquired and an investment plan was prepared which envisages the recognition of the future liability to replace the referred equipment by the end of the contract. Consolidated Management Report First Half 2015 José de Mello Saúde 40

Impairment losses The changes occurred in accumulated impairment losses in the semester ended 30 June 2015 were as follows: Impairment losses on current assets Trade receivables Other Inventories (Note 13) debtors Total Balance at 1 January 2015 19.657 9.355.889 1.567.900 10.943.446 Increase - 987.082-987.082 Use - - - - Reversal - - - - Balance at 30 June 2015 19.657 10.342.971 1.567.900 11.930.528 19. TRADE PAYABLES AND ADVANCES FROM CLIENTS These items were broken down as follows at 30 June 2015 and 31 December 2014: 30-06-2015 31-12-2014 Trade payables, current account 72.676.395 66.190.433 Trade payables, invoices pending 10.188.393 6.594.919 Advances from clients 2.616.952 2.179.181 85.481.740 74.964.533 20. OTHER LIABILITIES At 30 June 2015 and 31 December 2014 this caption was made up as follows: Consolidated Management Report First Half 2015 José de Mello Saúde 41

30-06-2015 31-12-2014 Accrued costs: Wages payable 21.615.077 22.979.879 Medical fees 11.581.619 16.389.025 Operating costs: Purchases 633.287 787.869 Sundry external supplies and 6.907.265 5.711.227 Personnel costs 2.309.870 3.256.514 Duties 403.490 338.487 Fines and penalties 670.126 372.370 Other operating costs 77.950 28.268 Financial expenses - 692.000 Derivative financial instruments 454.101 - Escala Braga increase costs 994.138 994.138 Other accrued costs 103.760 217.682 45.750.682 51.767.458 Deferred income: Financial income 586.277 606.611 Rebilling - 152.096 Rents and leases 16.317 - Other deferred income 99.739 16.157 702.333 774.864 46.453.015 52.542.322 21. RELATED PARTIES Transactions and balances between José de Mello Saúde, S.A. (the parent company) and the Group companies have been eliminated in the consolidation process and are not disclosed in this note. Balances and transactions between the Group and associates and other related parties are detailed below: Related party Clients Debit balances Shareholders and subsidiaries Other assets Credit balances Suppliers Efacec Capital Group 156.404 - - 1.503.880 Brisa - Auto-estradas de Portugal Group 18.649 - - 122.921 Efacec - Sistemas de Gestão, SA 1.985 - - - José de Mello, SGPS, S.A. 486 4.112.780 20.000.000 38.508 José de Mello Participações II, SGPS, S.A. - - 23.610.260 - José de Mello Residências e Serviços Group 275.455 - - 5.149 CUF Group 1.865 - - - José de Mello Imobiliária Group - - - - José de Mello Serviços, Lda. - - - 23.329 José de Mello Energia, S.A. - - - - M Dados Sistemas de Informação, S.A. - - - 171.979 Hospital Amadora-Sintra - Sociedade Gestora, S.A. - 393.037 - - Farminveste - Investimentos, Participações e Gestão, S.A. - 1.763.018 8.650.096-454.844 6.268.835 52.260.356 1.865.765 Consolidated Management Report First Half 2015 José de Mello Saúde 42

Related party Sales and rendered Transactions Financial income External supplies and Efacec Capital Group 187.883-1.247.087 Brisa - Auto-estradas de Portugal Group 103.463-419.186 Efacec Sistemas de Gestão, SA - - - José de Mello, SGPS, S.A. 3.109 92.338 16.026 José de Mello Participações II, SGPS, S.A. - 108.504 - José de Mello Residências e Serviços Group 2.264-15.853 CUF Group 6.656 - - José de Mello Imobiliária Group 218 - - M Dados Sistemas de Informação, S.A. - - 561.522 Farminveste - Investimentos, Participações e Gestão, S.A. - 40.147 - José de Mello Energia, S.A. 609 - - José de Mello Serviços, Lda. - - 33.584 304.201 240.990 2.293.257 The terms and conditions of transactions between the Group companies and related parties are substantially identical to those normally contracted, accepted and practiced between independent entities in comparable transactions. 22. APPROVAL OF THE FINANCIAL STATEMENTS The financial statements for the semester ended 30 June 2015 were approved by the Board of Directors on 11th August 2015. The Chartered Accountant The Board of Directors Consolidated Management Report First Half 2015 José de Mello Saúde 43