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

Notes to the Financial Statements as at 31 st December 2008
In commercial operations, as well as in financial operations carried out between the Company and any other entity, subject or not to the “IRC” (Corporate Income
Tax), with which it has special relations, the terms or conditions signed, accepted and practiced are substantially identical to the terms or conditions which would
normally be signed, accepted and practiced between independent entities under comparable operations.
In order to assure the highest level of comparability between the abovementioned operations and those which are practiced in normal market situations or
whenever no special relation exists, the Company adopts the following methods:
- Cost sharing;
- Comparable market price; and
- Cost-plus pricing.
21 - ADJUSTMENTS TO CURRENT ASSET ITEMS
During the year ended 31 st December 2008, the following movements occurred in the balances of adjustment items:
Items Opening Reinforcement Reversion Write-off Regularisation Closing
balance
balance
Inventory
Raw materials and consumables 528 238 - - 30 796
Accounts receivable
Bad debt 16,776 2,139 (2,178) (511) 209 16.435
Other receivables 1,650 103 - - (3) 1.750
18,426 2,242 (2,178) (511) 206 18,185
The amounts stated in the “Regularisation” column result from the effect of the integration of the Angolan and Algerian subsidiaries.
23 - BAD DEBT
As at 31 st December 2008, debts classified as bad debt amounted to EUR 16,890 thousand from customers’ bad debt and EUR 1,750 thousand from
other receivables. These debts are adjusted based on loss expectations due to the non-collection of those accounts receivable, thus adjustments were
made for those debts in the amount of EUR 16,435 thousand and EUR 1,750 thousand, respectively. (Note 21).
31 - FINANCIAL OBLIGATIONS ASSUMED AND NOT INCLUDED IN THE BALANCE SHEET
As at 31 st December 2008, non-recourse factoring contracts were in force, which were recorded as a reduction in accounts receivable, amounting to
EUR 127,123 thousand. In accordance with the contractual conditions, the Company’s responsibility is basically restricted to the assuring that
customers accept the invoices subject to factoring.
As at 31 st December 2008, the Company had liabilities under discounted and unmatured bills amounting to EUR 130 thousand.
32 - GUARANTEES PROVIDED
At as 31 st December 2008, the Company had provided bank guarantees and fidelity guarantee insurance to customers for the purpose of tendering,
prepayments already received and as guarantee of good execution of works, amounting to EUR 322,386 thousand and EUR 51,425 thousand,
respectively.
To guarantee the financing contract provided by its investee TDHOSP - Gestão de Edifício Hospitalar, S.A., the Company pledged 486,673 shares,
representing the capital stock of the abovementioned investee company, with Caixa Geral de Depósitos and Caixa Banco de Investimentos. Within the
scope of the same financing contract, the Company, as shareholder, pledged its credit rights over that investee company, emerging from the realisation
of already made investments foreseen in the management contract, amounting to EUR 2,433 thousand.
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