Annual Report 2010 - CMVM

Management Report of the Board of Directors 2010In 2010, the construction works of blocks 6 and 7 of the new premises of the College were concluded, comprising an area of 3,700 m2 plus7,600 m2 of recreational areas and sports fields, enabling the start-up of its operation at the beginning of the academic year in September.The following entities are part of the abovementioned subsidiaries whose direct management is not carried out by the structures of the TeixeiraDuarte Group:AEDL - Auto-Estradas do Douro Litoral, S.A. is a company in which TD-EC owns a holding of 19.67% of the respective share capital andwhich signed the Douro Litoral concession contract with the Portuguese State at the end of December 2007.This agreement will last for a period of 27 years, with the object being the design, project, construction, increase in the number of lanes,financing, conservation and operation of the associated motorway stretches and roadways, under the name of Douro Litoral Concession,covering a total of 129 Km, where users are subject to the payment of a toll on 78 Km. This infrastructure was inaugurated on 1 April 2011.AEBT - Auto-Estradas do Baixo Tejo, S.A. is a company in which TD-EC holds 9% of its share capital and which signed the Baixo TejoSub-Concession Contract with EP – Estradas de Portugal, S.A. on 24 January 2009.This sub-concession contract will last for a period of 30 years and envisages the design, planning, construction, increase in the number oflanes, financing, operation and conservation of the motorway stretches, associated roadways road links in the district of Setúbal, called theBaixo Tejo sub-concession, along a total of 68 Km, of which 17Km include toll-gates and involving an estimated investment of approximatelyEUR 278 million.LUSOPONTE - Concessionária para a Travessia do Tejo, S.A. is a company dedicated exclusively to the management, under a concessionregime, of the two road crossings over the River Tejo, in the region of Lisbon, in which TD-EC owns 7.5% of the share capital.During 2010, the performance of this subsidiary was similar to that of the previous year, with its Profit Before Taxation having increased slightlyby 0.56%, amounting to EUR 19,703 thousand compared with the restated value of EUR 19,595 thousand for 2009.In spite of the small decrease in revenue of 1.9% and a slight increase in costs, the company achieved a net profit after taxation of EUR 14,372thousand, 0.02% above its Budget and 2.1% higher than in 2009.This decrease is essentially explained by the impact of the new accounting rules and by the increased income tax which occurred in 2010.CPM - Companhia de Parques de Macau, S.A., in which the Teixeira Duarte Group has maintained a stake of 15% of the share capitalsocial since its foundation in the mid-1980's, after the international public tender carried out abroad, was a pioneer and continues to be areference company in the construction and operation of car parks and related activities, in the Special Administrative Region of Macau, havingsuccessfully pursued its operations within the specific parameters of the market.2010 was marked by operating alterations which were reflected in the loss of the concession of one of the largest parks, the "Nam Van LakeCar Park", compensated slightly in terms of income by the beginning of the Vasco Park concession and by the expansion of the street parkingconcession. Overall and adding the significant increase in the counterpart payable to the concession grantor, the new circumstances arepenalising for the net operating income.Even so, this subsidiary recorded a positive net income, and continued its regular contribution to the Teixeira Duarte Group with the distributionof dividends of the value of EUR 271 thousand, compared with the EUR 277 thousand received in the previous year.38