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
Operating Profit by Business Sector and Geographic Markets
Business Sector Internal Market External Market Total
2008 2007 Var (%) 2008 2007 Var (%) 2008 2007 Var (%)
Construction 342,639 286,459 19.6% 370,345 233,455 58.6% 712,993 519,914 37.1%
Cement, Concrete and Aggregates 3 1 200.0% 33,148 21,419 54.8% 33,151 21,420 54.8%
Concessions and Services 13,420 13,459 (0.3%) 21,445 21,681 (1.1%) 34,865 35,140 (0.8%)
Real Estate Development 70,885 82,465 (14.0%) 42,971 5,470 685.6% 113,856 87,935 29.5%
Hotel Services Industry 13,597 11,537 17.9% 55,137 51,002 8.1% 68,734 62,539 9.9%
Food Trade - - - 102,589 89,286 14.9% 102,589 89,286 14.9%
Fuel Sales 151,320 131,134 15.4% 20 45 (55.6%) 151,340 131,179 15.4%
Vehicle Sales 122 7,148 (98.3%) 159,531 112,166 42.2% 159,653 119,314 33.8%
Total per Sector: 591,986 532,203 11.2% 785,195 534,524 46.9% 1,377,181 1,066,727 29.1%
(Amounts expressed in thousands of Euros)
EBITDA increased 66.2% compared to the previous year,
amounting to EUR 187,842 thousand, influenced by nonrecurring
operations of EUR 53,263 thousand.
The EBITDA margin / Turnover increased by 30.2%, going
from 11.2% in 2007 to 14.6% in 2008.
Financial results were a negative EUR 595,439 thousand,
basically due to the devaluation of the Available-for-Sale
Financial Assets at fair value, amounting to EUR 536,037
thousand.
Without taking into consideration this non-recurring loss, the
worsening of financial results would be EUR 123,269
thousand, basically due to the sharp increase in interest rates
and in the amount of indebtedness of EUR 164,934 thousand,
as well as for the decrease in the results in associated
companies, which, in 2007, had had a significant benefit from
the sale of the stake in “Scutvias – Autoestradas da Beira
Interior, S.A.”.
Regarding this matter, it is important to mention the
negative impact that exchange rate fluctuations had on the
financial year, amounting to EUR 5,870 thousand, due to
the devaluation of the Real (Brazil) and of the Hryvnia
(Ukraine).
The Income Tax, negative by EUR 51,368 thousand, reflects
the composition of the deferred taxes assets of EUR 76,480
thousand, related to the loss of Available-for-Sale Financial
Assets and to deferred tax liabilities of non-recurring
operations amounting to EUR 16,490 thousand.
The Total Net Assets maintained values similar to those
recorded for the previous financial year, having reached EUR
3,178,037 thousand, where the strategic stake taken in
“CIMPOR - Cimentos de Portugal, SGPS, S.A.” and in “Banco
Comercial Português, S.A.”, as well as in “Lagoas Park”
stands out, amounting to an overall sum of EUR 1,301,463
thousand.
Group Indebtedness, which continues to be subjected to
tight control within the scope of the global strategy defined,
reached EUR 1,957,380 thousand, having had an increase of
EUR 164,934 thousand in 2008, during which the Group
significantly invested in several projects in Brazil and
increased its stake in “CIMPOR – Cimentos de Portugal –
SGPS, S.A.” and “Banco Comercial Português, S.A.”.
Total Equity decreased considerably, settling at EUR
338.932 thousand, which represents a 59.4% decrease
compared to the previous year, basically due to the enormous
impact that the market crisis had on the market value of
Available-for-Sale Financial Assets.
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