A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Management Report of the Board of Directors - Financial Year 2008
I. INTRODUCTION
The Board of Directors of “TEIXEIRA DUARTE - Engenharia
e Construções, S.A.”, in compliance with the regulatory and
legal framework for publicly traded companies, has the
pleasure to present its management report for the financial
year 2008.
This report summarises the most significant matters relating
to the individual activities of “TEIXEIRA DUARTE -
Engenharia e Construções, S.A.” and its delegations.
Additionally, it covers the consolidated activities of a parent
company that heads a business group comprising several
investee companies illustrated in the “Teixeira Duarte Group
Chart – 2008” in the preliminary pages.
As each of these units has its own governing bodies, which
report on their respective activities, this document will only
provide brief, appropriate observations wherever the
consolidated position is affected.
Within that very scope and in order to more appropriately
assess the development of the activity of these entities,
mention will be made, where justified, of some key
economic and financial indicators reported by the investee
companies.
The most adequate way to expose the subjects herein will be,
in first place, to describe the economic background that
prevailed in the year under review, in which operations were
carried out, followed by an overall assessment of the
Business Group, focusing on the most significant aspects of
consolidated operations.
The ensuing chapters provide information on the performance
carried out in various business sectors throughout 2008,
distinguishing the internal and external markets in each one
of them, focusing particularly on the Construction sector,
which is the core business of both the Group and “TEIXEIRA
DUARTE - Engenharia e Construções, S.A.”. The latter will
deserve an individual approach and its main economic and
financial indicators will be treated separately.
Mention will also be made of strategic stakes held in listed
companies, i.e. “CIMPOR” - Cimentos de Portugal - SGPS,
S.A.”, “Banco Comercial Português, S.A.” and “Banco Bilbao
Vizcaya Argentaria, S.A.”.
The significant events that took place between the end of the
financial year and the date on which this Report was prepared
will then be described, followed by the conclusions on the
year 2008, ending with an outlook for the financial year in
progress and the proposed allocation of profits.
Attached to this document are, under the applicable
legislation, the detailed report on the Company’s structure
and corporate governance practices (prepared in
compliance with Article 245-A of the Portuguese Securities
Market Code and with CMVM Regulation No. 1/2007), as
well as some information regarding the shares held in the
capital of “TEIXEIRA DUARTE - Engenharia e Construções,
S.A.” (particularly in accordance with Articles 447 and 448 of
the Portuguese Commercial Companies Code and with
CMVM Regulation No. 5/2008).
Lastly, the individual and consolidated financial statements
and accompanying notes are also included in this report.
They were prepared in accordance with the International
Financial Reporting Standards (IFRS), as adopted by the
European Union, as well as the respective Reports and
Opinions by the Supervisory Boards, the Legal Certification
of Accounts and the Audit Report prepared by an auditor
registered with the CMVM.
Under the terms and for the purposes of paragraph 1(c) of
Article 245 of the Portuguese Securities Market Code, the
undersigned declare that, to the best of their knowledge,
the Management Report, the annual accounts, the legal
certification of accounts and all the other documents for
the presentation of accounts were prepared according to
the applicable accounting standards, conveying a true and
proper image of the assets and liabilities, of the financial
situation and results of “TEIXEIRA DUARTE - Engenharia
e Construções, S.A.” and of the companies comprised in
its consolidation perimeter, since they also truthfully
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