Annual Report 2010 - CMVM

Management Report of the Board of Directors 2010results of TD,SA and the companies included in the consolidation perimeter, as well as faithfully presenting the evolution of the businesses,performance and position of each of these entities, containing a description of the main risks and uncertainties facing them.NOTE: on the attached financial statements and indicators provided in the text of the actual management report:The financial statements of TD,SA as at 31 December 2009 include the consolidation through the full method of the assets and liabilities of theentities and holdings owned directly and indirectly by TD-EC, which are now consolidated by TD,SA.However, and since TD,SA was constituted on 30 November 2009, the consolidated income statement for that year include only the net incomeobserved during the period between the above date of constitution and 31 December of the same year.Therefore, while the consolidated statement of the financial position of TD,SA reported as at 31 December 2009 are comparable with that of2010, the consolidated statements of income, full income, changes in equity and cash flows do not include comparable data. Nevertheless,the consolidated financial statements of the Teixeira Duarte Group for the year ended on 31 December 2009 are available on the Company'swebsite (www.teixeiraduarte.pt).However, and only in the Management Report, the indicators of the consolidated financial statements of TD-EC are presented for 2009, restatedin accordance with IFRIC 12, solely for the purpose of comparison with the consolidated financial statements of TD,SA for 2010, thusallowing for an assessment of the evolution and performance of the Teixeira Duarte Group.II. ECONOMIC ENVIRONMENTDuring the year, the national economy lived under the threat of a sharp reduction in GDP, with most economic indicators confirming thecontinuation of the recession.By contrast, and in spite of the international crisis, the truth is that good performance has been recorded in the foreign markets where theTeixeira Duarte Group companies operate, as was the case in Angola, Algeria, Brazil and Mozambique, which are considered strategic marketsfor development abroad.III. GENERAL OVERVIEW- FINANCIAL OVERVIEW:In compliance with the legal provisions, the consolidated financial statements are prepared in accordance with the International ReportingStandards (IAS/IFRS).TD,SA was constituted on 30 November 2009, but was only listed on the stock market in August 2010 and it was only in December 2010 thatTD,SA acquired 100% of the share capital social of TD-EC, replacing this entity as the leading listed company of the TEIXEIRA DUARTE Group.13