5. - Secil

ANNUAL REPORT 2OO8

SECIL - COMPANHIA GERAL DE CAL E CIMENTO, S.A. 

Share Capital: 264 600 000 euros 

Head quarters: Outão - Setúbal 

Tax number: 500 243 590 

Phone: +351 212 198 100 

www.secil.pt

Annual 

Report 2008 

2 | 3 

ANNUAL REPORT 

SECIL 2008

Contents 

Viana do Castelo City Library

Statutory Boards 6 

Message from the Chairman of the Directors 8 

Directors´ Report 10 

1. Overview 12 

2. Main developments in 2008 17 

3. Portugal 18 

3.1. Economic background 18 

3.2. Cement 18 

3.3. Ready-mixed and aggregates 22 

3.4. Precast concrete 23 

3.5. Mortars and binders 24 

3.6. Madeira 25 

3.7. Use of biomass and waste for energy purposes 26 

4. Tunisia 27 



4.3. Ready-mixed and pre-cast concrete 29 

5. Lebanon 30 

5.1. Economic background 30 

5.2. Cement 30 

5.3. Ready-mixed 31 

6. Angola 32 



7. Cape Verde 34 



7.2. Ready-mixed 35 

8. Development 35 

9. Corporate Organization 36 

10. Financial 37 

Consolidated Financial Statements 40 

1. Consolidated Income Statement 42 

2. Consolidated Balance Sheet 43 

3. Consolidated Statement of Cash Flows 45 

4. Index to the Consolidated Financial Statements 49 

5. Notes to the Consolidated Financial Statements 50 

Sustainability Report 116 

1. This Report 118 

2. About Secil 119 

3. Economic Performance 121 

4. Environmental Performance 123 

5. Social Performance 130 

Annex 134 

1. Report and Opinion of the Statutory Auditors 136 

2. Report of Statutory Auditors 137 

3. Group Diagram 138 

4 | 5 

ANNUAL REPORT 

SECIL 2008

Jim Mintern Anthony O´Loghlen 

Albert Manifold Sebastián Alegre Rossello 

Henry Morris 

Statutory Boards 

Pedro Queiroz Pereira Carlos Alves Francisco Nobre Guedes Carlos Abreu 

Sérgio Alves Martins Gonçalo Salazar Leite 

José Honório 

João Vendeirinho Almeida Anthony Creedon 

Joaquim Dias Cardoso 

Mário Valadas

General Meeting Board 

President 

Henrique Reynaud Campos Trocado 

Secretary 

Filipe de Andrade Pereira Coelho 

Board of Directors 

Chairman 

Pedro Mendonça de Queiroz Pereira 

Directors 

Carlos Eduardo Coelho Alves* 

Francisco José Melo e Castro Guedes** 

Carlos Alberto Medeiros Abreu** 

Sérgio Alves Martins** 

Gonçalo de Castro Salazar Leite** 

João Vendeirinho Almeida** 

Anthony Creedon** 

Jim Mintern 

Anthony O´Loghlen 

Albert Jude Manifold 

Sebastián Alegre Rossello 

Henry Morris 

José Alfredo de Almeida Honório 


Mário José de Matos Valadas 

* Executive Comitee Member ** CEO 

Supervisory Board 

Sole Auditor 

PricewaterhouseCoopers & Associados, SROC, LDA 

represented by Abdul Nasser Abdul Sattar or Ana Maria Ávila de Oliveira 

Lopes Bertão 

6 | 7 

ANNUAL REPORT 

SECIL 2008

Message from the Chairman 

In last year’s report we said 

that, since the economic 

framework for 2008 did not 

appear to be favourable, 

the Company’s employers 

and managers would have 

to commit to an attitude 

of innovation, perseverance 

and creative capacity in order 

to find technical and 

management solutions that 

would allow the expected 

difficulties to be overcome. 

SINGULAR YEAR OF UNMATCHED 

PERFORMANCE 

It is therefore with no little satisfaction 

that we find that this challenge we made 

a year ago was accepted and clearly surmounted, 

and that frankly good results 

were achieved. We are there in a position 

to say that this singular year, 2008, was 

one of unmatched performance. 

A singular year because, during the first 

half, fossil fuels rose to record prices, causing 

an enormous increase of production 

and transport costs, while interest rates 

rose continuously, deteriorating our financial 

results; during the second half we witnessed 

an abrupt decline of economic 

activity induced by the international financial 

crisis and by a widespread lack of 

economic confidence that led to a postponement 

of public and private investment 

decisions. 

Unmatched performance to the extent 

that, despite this context, Secil’s results 

were clearly positive in the great majority 

of the business indicators, both in 

Portugal and in its international operation: 

2% increase of sales volume 

in Portugal and more than 6% 

for the whole of the Company’s 

markets; 9.8% 

EBITDA growth; and 

a 26% increase of 

net profit to 63 

million 

euros.

To achieve these economic 

and financial results 

there had to be a 

combination of excellent 

commercial performance 

and technical 

expertise, which led to 

the substitution of fossil 

by alternative fuels, in 

parallel with a reduction 

of the factor of incorporation 

of clinker into the 

cement, allowing a substantial 

reduction of 

CO 2 emissions, besides 

strict financial management. 

Together with control of 

production costs and of 

overheads, these processes 

allowed most of 

the businesses consolidated 

this year to clearly 

meet their goals. 

For 2009, which unfortunately, 

though with 

even greater conviction, 

we now view as even more arduous than 

2008, we extend our wishes for every success, 

in the certainty that we shall be able 

to rely on complete dedication to the pursuit 

of the Company’s objectives, objectives 

that are well known to and shared by 

all – employees and management alike – 

and are accepted as theirs. 

Pedro Queiroz Pereira 

Chairman of the Board 

of Directors 

8 | 9 

ANNUAL REPORT 

SECIL 2008

Directors’ Report 

Pataias Municipal Swimming Pools

Leixões-Mar Depot 

Directors’ Report 

1 Overview 2 Main Developments in 2008 3 Portugal 

4 Tunisia 5 Lebanon 6 Angola 7 Cape Verde 8 Development 

9 Corporate Organization 10 Financial 

10 | 11 

ANNUAL REPORT 

SECIL 2008

2008 was marked by a series 

of events with far-reaching 

impacts on the economies 

of developed and emerging 

countries, and consequently 

on most industrial sectors 

and companies. 

The first half of the year 

witnessed rising oil and 

commodity prices and 

increasing interest rates in 

Europe. The financial crisis 

became widespread from June 

onwards and by the fourth 

quarter most developed 

countries entered economic 

recession, accompanied by 

a sharp drop in interest rates, 

prices of solid fuels and 

leading commodities. 

1. Overview 

1. OVERVIEW 

The cement industry, in general, and Secil 

Group business in particular, was hit hard 

by the extremely high prices of thermal 

fuels and maritime and road transportation 

costs. The construction industry and demand 

for cement contracted significantly 

around the world, especially in the more 

developed countries, including Portugal, 

which is key market for the Secil Group. 

Despite this highly adverse environment, 

the Secil Group displayed resilience 

in the face of difficulty and was able to 

record an excellent business performance. 

Consolidated turnover rose to 599 

million euros, representing growth of 6% 

compared to 2007. 

Operational performance was markedly 

better than the previous year. EBIT- 

DA (earnings before interest, tax, depreciation 

and amortization) was up by 10%, 

to 157 million euros. 

EBIT (earnings before interest and tax) 

reached 99 million euros, representing an 

increase of approximately 19% over the 

previous period. 

The Group recorded strong performance 

in cement business in Portugal and 

Angola, enabling it to offset poorer results 

from cement operations in Tunisia and 

concrete and aggregates business in 

Portugal. 

Income tax reached 21 million 

euros, up 5% on 2007. Net profits 

attributable to shareholders 

stood at 63 million euros, 

representing an increase 

of 25%. 

Capital expenditure 

totalled 45 

million 

eu-

os, broken down into 42 million 

in operating investment and 3 

million in acquisitions. 

Net debt stood at 124 million 

euros at year end, down 17% on 

year-end 2007. 

PORTUGAL 

Cement consumption decreased 

by around 7.5%, resuming the 

sharp downward course initiated in 

2002, only briefly halted in 2007. 

The market was supplied by 

domestic manufacturers and imported 

cement and clinker, which 

declined in volume terms in comparison 

with the previous year. 

Total sales of cement and clinker 

stood at 3.9 million tons, 

corresponding to the same 

volume level as 2007 corresponding 

to an 8% increase, 

in value terms. 

The Group’s successful performance 

in its cement 

operations in Portugal 

was achieved despite 

an appreciable increase 

in fuel and 

maritime freight 

prices, 

and was 

due essen 

Aveiros’ Depot 

tially to higher selling prices, increased utilization 

of alternative energy fuels and a tight 

cost control. EBITDA was up by 11% to 99 

million euros. 

The Board of Directors wishes once 

again to alert the Portuguese Government 

to the need to pursue a policy in the energy 

sector which eliminates the competitive distortions 

undermining Portuguese industry, 

and the cement industry in particular. 

The cost of thermal energy was higher 

than in the previous year due to substantially 

higher prices for solid fuels and maritime 

freights. However, it was possible to slightly 

offset these adverse factors through the 

increased use of biomass and waste as fuel 

sources, and increased use of waste as raw 

material inputs. 

Secil is pleased to record that it once 

again kept within the annual limits set in the 

licenses issued by the Portuguese Government 

under the National CO 2 Emissions 

Licensing Plan. The surpluses which the 

Group expects to achieve in the period 

2008-2012 were sold considering the 

improvements in energy effciency and the 

12 | 13 

ANNUAL REPORT 

SECIL 2008 

current rate of substitution 

of fossil fuels by 

biomass. 

The insistence by the 

European Union in implementing 

further penalties 

for industries with high 

energy consumption, 

without equivalent penalties 

for competing manufacturers 

located outside 

the Union, continues be 

of concern to company’s 

Board of Directors. If 

a balancing mechanism 

is not introduced as in 

the form of compensatory 

charges payable on 

the energy content of 

competing products imported 

from non EU 

countries, the stage will 

be set for production to 

relocate to outside the 

European Union, with significant adverse 

social consequences due to a reduction in 

employment levels within Europe and environmental 

costs due to higher global pollution 

levels. 

The performance of Group’s companies 

and plants in the ready-mix concrete, 

aggregates and mortar segments 

was generally down on previous year, 

due to the recession prevailing in the 

construction sector.

TUNISIA 

Cement and artificial lime 

consumption was 6.3 

million tons in the year 

under review, up 3% 

over the previous year. 

Increased sales by 

Société des Ciments de 

Gabès was not enough 

to offset significant increases 

in the price of thermal 

fuel and electricity. 

As a result, EBITDA fell 

to 13.9 million euros, 

down by approximately 

15%. Cement output 

and sales was at an alltime 

high for Société des 

Ciments de Gabès. 

We would like to again 

mention that the 

cement market in Tunisia 

continues to be regulated, 

in contravention of the undertaking by 

the country’s government and specifically 

mentioned as a precondition in the terms 

and conditions for the privatization of 

Tunisia’s cement companies. The market 

was due to be deregulated in May 2002, 

and the Government imposed another 

administrative set price adjustment in June 

2008. This last increase was grossly insufficient 

to offset rising energy costs, notably 

increased electricity and gas prices imposed 

by state owned utility companies. 

The Group’s companies in the readymix 

concrete market recorded an excellent 

overall business performance with a marked 

improvement over 2007. 

LEBANON 

Stabilization of the political situation and 

improved security levels had a very positive 

effect on the economy in general, and 

especially in the construction sector. 

Cement consumption totalled 4.2 million 

tons, up 7% on the previous year. 

Growing sales and successful plant 

management allowed Sibline to overcome 

1. Overview 

significant 

increases in 

energy costs and 

to record a good 

operational performance, 

not entirely 

reflected in the consolidated 

financial statements 

of the Group (denominated 

in euros), due to the 

devaluation of the USD against 

the euro. 

Soime, the company which operates in 

the ready-mix concrete segment, also posted 

a positive performance in the year. 

ANGOLA 

The Angolan economy and the construction 

industry continue to post sustained 

growth levels. 

In this context, Secil Lobito once again 

recorded excellent performance reflected 

in the growth in turnover (+ 43%) and in 

EBITDA (+ 95%). 

The financing and supply agreements 

for the construction of the new production 

line are in the process of finalization, 

and construction work is 

expected to get underway during 

the first half of 2009. 

The investment for the new 

production line will total 190 million 

USD, including a power generation 

unit. With the new production 

line, Secil Lobito will have annual production 

capacity of half a million tons of clinker and 

a million tons of cement. 

CAPE VERDE 

Whilst Secil Cabo Verde recorded a significant 

drop in business due to logistical difficulties 

in the market caused by the high 

level of maritime freights, ICV – Inertes de 

Cabo Verde recorded a positive performance, 

turning around the negative trend recorded 

in recent years.

As a fundamental aspect of 

its sustainability policy, 

priority is given to the 

concepts of rationalization 

and respect for the 

expectations of different 

stakeholders. This means 

making more rational use 

of natural resources 

(replacing natural raw 

materials and fossil fuels with 

alternative materials), 

improving energy efficiency, 

support for and participation 

in the work of local bodies 

and a policy of social 

protection for our workers, 

their families and the local 

communities. 

SECIL CONTINUES TO DEVOTE 

SPECIAL ATTENTION TO ISSUES 

OF SUSTAINABILITY. 

Significant strides have been made in this 

area particularly in the Portugal-Cement 

business area, including the following: 

■ Publication of the third Sustainability 

Report on activities 2002-2007, drawn up in 

accordance with the Global Reporting 

Initiative guidelines. 

■ Use of alternative fuels increased from 

15% in 2007 to 18% in 2008. 

■ Reduction in the rate of clinker incorporation 

in cement from 78% in 2007 to 74% 

in 2008. 

■ Reduction in specific CO 2 emissions from 

678 kg/t, in 2007, to 649 kg/t, in 2008, due 

to the lower rate of clinker incorporation in 

cement and increased use of alternative 

fuels; CO 2 emissions were lower than the 

levels licensed, by approximately 92 000 t. 

■ The Outão Plant was successfully registered 

with EMAS – Eco Management Audit 

Scheme. 

■ APCER conducted the first audit of the 

Integrated Quality, Environment and Safety 

System (QES), covering three plants and 

the Sales Department, in accordance with 

standards ISO 9001, ISO 14001, OHSAS 

18001 and EMAS. 

■ Work continued on the Biodiversity 

Project, with Secil assuming a leadership 

role in the cement industry in its systematic, 

planned and scientific approach to questions 

of fauna. 

Health and Safety at Work was also 

a special concern across the whole 

Group in 2008. The main priority at present 

is to eliminate the occurrence of fatal 

accidents and significantly reduce the 

number of accidents and corresponding 

severity rates all Group companies. 

A new Health and Safety at Work 

Department (HSWD) has been set up to 

coordinate these efforts. 

14 | 15 

ANNUAL REPORT 

SECIL 2008 

The Board of Directors wishes to express 

its thanks to its customers and employees; 

to Statutory Auditor; to the financial 

institutions which have supported the 

Group; to its suppliers and, in general, the 

partners who have worked with Secil on its 

various business initiatives. 

The Board of Directors also wishes to 

thank the shareholders for the trust placed 

in them, which has been fundamental to 

effectively conducting the company’s 

affairs with a view to the prime objective 

of increasing the value of the company.

KEY GLOBAL OPERATIONAL INDICATORS 

KEY CONSOLIDATOR BUSINESS INDICATORS (1) 

1. Overview 

2006 2007 2008 VARIATION 

Cement Production Capacity 1000t 5 631 6 850 6 850 0% 

Sales 

Grey cement 1000t 4 599 5 714 5 801 + 2% 

White cement 1000t 90 100 100 0% 

Artificial lime 1000t 75 63 61 - 3% 

Clinker 1000t 350 434 586 + 35% 

Ready-Mix Concrete 1000m 3 

2 352 2 476 2 350 - 5% 

Aggregates 1000t 3 147 3 845 3 578 - 7% 

Pre-cast 1000t 144 162 145 - 10% 

Mortars 1000t 332 397 436 + 10% 

Hydraulic lime 1000t 37 34 32 - 7 % 

Mortar fixative 1000t 8 7 6 - 11% 

Employees 

Number of employees 2 138 2 769 2 674 - 3% 

Accident frequency index - 3,23 2,38 - 26% 

Accident frequency ratio - 76,13 71,96 - 5% 

2006 2007 2008 VARIATION 

Turnover M€ 468 564 599 + 6% 

EBITDA M€ 129 143 157 + 10% 

EBIT M€ 79 84 99 + 19% 

Net financing costs M€ - 3 - 9 - 8 - 3% 

Pre-tax profits M€ 76 75 91 + 21% 

Net profits M€ 58 50 63 + 25% 

Total assets M€ 765 830 860 + 4% 

Shareholders’ funds M€ 359 362 393 + 9% 

Net debt M€ 137 150 124 - 18% 

EBITDA margin 27% 25% 26% 

EBIT margin 17% 15% 17% 

CAPEX M€ 34 41 42 0% 

Net debt / EBITDA 1,1 1,0 0,8 - 17% 

(1) As started in note 1 to the Consolidation Financial Statements, the presentation of financial information has been reestructured since 2007, in 

anticipation of the gradual implementation of the New Standard Accounting System

MARCH 

■ Secil participates in the 2nd National 

Precast Concrete Conference, held at LNEC 

– Laboratório Nacional de Engenharia Civil. 

■ Initiation of seminars organized by CTEC 

– Centro Técnico Corporativo on the subject 

of “Alternative Fuels”. 

■ Commencement of the “Campus Secil” 

management and leadership training programme, 

aimed at management staff from 

throughout the Group in Portugal. 

■ The Outão plant successfully registers 

with EMAS – Eco Management Audit 

Scheme. 

APRIL 

■ The 2007 Secil Engineering Award is 

awarded to Engº José António da Mota 

Freitas, responsible for the project of the 

design for the Holy Trinity Church in Fátima. 

MAY 

■ The European Day for the cement industry 

coincide with the 85th anniversary of the 

Maceira-Liz plant and the start of the “Open 

Doors Week”. 

■ Start of the New Talent 

Recruitment Programme, 

with the announcement 

at the JobShop fair, at 

the Instituto Superior 

Técnico, in Lisbon. 

■ Secil takes part in 

Tektónica/Simac 2008, 

the international civil 

construction and public 

works fair held in Lisbon. 

■ International Biodiversity 

Day at the Outão, 

Maceira-Liz and Cibra- 

Pataias plants. 

2. Major Developments 

in the year 

JUNE 

■ “Open Doors Week” at the Outão plant, 

devoted to the theme “Energy and the 

Environment in Arrábida”, which attracted 

around 600 visitors. 

■ Secil Unicon acquires the entire share 

capital of Secil Prebetão. 

■ Secil acquires, through Ciminpart a 50% 

stake in Teporset, located in Setúbal. 

JULY 

■ For a sixth year running, Secil signs cooperation 

agreements with cultural, sporting 

and welfare organizations in Setúbal. 

SEPTEMBER 

■ The Outão plant organizes the second 

Ecoquarry project, with a view to landscape 

rehabilitation of quarries with Mediterranean 

characteristics, in collaboration with the 

Environmental Biology Centre of the Faculty 

of Science, University of Lisbon. 

OCTOBER 

■ Group management meeting, in Torres 

Vedras, for preparation of the 2009-2013 

Medium Term Business Plan. 

Maceira-Liz Plant 

16 | 17 

ANNUAL REPORT 

SECIL 2008 

■ “Process and Quality” seminar, designed 

to promote communication between the 

different Group companies, disseminate 

technologies and provide information on 

best practice at each of the plants. 

NOVEMBER 

■ Initiation of the “Trainees Secil” Programme, 

aimed at high-potential graduates, 

with a view to future integration into the 

group. 

DECEMBER 

■ Merger of Rubetão into Secil Prebetão, 

resulting in Secil Unicon holding 79.6% of 

the merged company. 

■ Secil-Britas acquires Colegra and a number 

of quarries located close to the existing 

quarries in Joane and Famalicão. 

■ Secil-Britas achieves quality certification 

status.

3. PORTUGAL 

3.1. MACROECONOMIC 

BACKGROUND 

Business in Portugal was significantly 

constrained in 2008 by international 

economic developments. 

Interest rates and oil and commodity 

prices soared in the first half of 

the year and the financial crisis 

spread from June onwards. By the 

fourth quarter, developed economies 

tipped into recession, accompanied 

by a sharp drop in 

interest rates and the oil price. 

In this context, gross domestic 

product is expected to have increased 

by only 0.3% in 2008 (Bank 

of Portugal – Economic Bulletin – 

January 2009), with negative growth 

forecasted for 2009. 

According to the same source, 

investment, measured by gross 

fixed capital formation, is expected to have 

declined by around 0.8%, resuming the 

downwards trend recorded up to 2006 and 

interrupted in 2007. 

The construction sector continued to 

decline, albeit more slowly than might have 

been expected in view of the current crisis. 

According to INE data, construction and 

public work activity is thought to have declined 

by around 1% in 2008 (construction 

and public works production index – INE – 

January 2009). According to data published 

by FEPICOP (Portuguese Construction 

and Public Works Federation), the decline 

stood at approximately 1.1% (Sector 

Analysis – January 2009). 

Inflation, measured by the harmonized 

retail price index, stood at 2.7%, slightly 

down from 2007 (2.4%). 

Interest rates rose gradually 

through to September, and then 

fell sharply: as an example 

the Euribor (3 month) 

rate fell from 4.67% 

in December 2007 

to 2.89% in December 

2008. 

3. Portugal 

3.2. CEMENT 

3.2.1. MARKET AND SALES 

Cement consumption in the European 

Union is expected to have declined by 

approximately 6% in 2008, clearly inverting 

the trend of growth recorded over 

recent years. 

In Portugal, cement consumption 

is thought to 

have stood at 7.3 

million tons, represent 

i n g 

a significantde- 

Pataias Swimming Pools 

crease in relation to 2007 

(- 7.5%) and a return to 

marked decline which 

started in 2002 and only 

briefly interrupted in 

2007. 

The decline in cement 

demand in recent years 

reflects the recession in 

the construction sector 

which has been most 

hard felt in the residential 

segment and to a lesser 

extent in the non- 

-residential and public 

works sectors. 

It is estimated that 

the volume of cement 

sold in the 

country resulting 

from 

cement 

and 

clinker imports was 

approximately 

400 000 

tons in 

2008.

(1) Estimates 

The business environment was highly 

competitive in 2008 driven by the national 

players and importers from the Spanish 

market, which has contracted and has an 

overcapacity relative to current levels of 

demand. In this business context the 

Group continued to pursue a policy of 

dynamic marketing combined with efforts 

to maintain close ties with its customers. 

The company maintained its presence 

in the main segments in the domestic 

market, especially in ready-mix and precast 

concrete, mortars, having increased its 

supplies to specialist retail chains. 

Cement sales prices rose by an 

average 7.8%. 

Cement and clinker sales totalled 277 

million euros, corresponding to 3.9 million 

tons; in relation to 2007, sales were up 

by 8% in value and held steady in volume 

terms. 

18 | 19 

ANNUAL REPORT 

SECIL 2008 

CEMENT MARKET (1) 

2006 2007 2008 

Portugal Mt 7,9 7,9 7,3 

Portugal % - 11,0 - 0,2 - 7,5 

European Union 27 % + 7,1 + 1,9 - 6,0 

CEMENT AND CLINKER SALES 

2007 2008 VARIATION 

Domestic Market M€¤ 210 229 + 9% 

Foreign Market M€¤ 47 48 + 2% 

Total M€¤ 257 277 + 8% 

Domestic Market 1 000t 2 937 3 003 + 2% 

Foreign Market 1 000t 958 905 - 6% 

Total 1 000t 3 895 3 908 + 0%

The Group bolstered its leadership in sales 

of CEM II/A-L 42.5 R cement and started 

work on the technical and economic analysis 

of new cement types and the respective 

trials in order to improve the sustainability 

of the products marketed. 

Sales of white cement were down by 

9% on 2007, due to shrinking consumption 

levels. 

Export sales totalled 905 000 tons, 

representing a drop of 6% in relation to 

the previous year. Exports of white cement 

totalled 20 000 tons. 

Secil cement was used in a number of 

high-profile projects, completed or curren- 

CEMENT PRODUCTION 

3. Portugal 

tly in progress, including the Multipurpose 

Pavilion in Viana do Castelo, the containment 

works for the marina at Parque das 

Nações, in Lisbon, the Valtorno and Picota 

dams, the Lisbon underground railway, the 

Cascais fort, the Santo Tirso Sports Complex, 

the Matosinhos mortuary and various 

road and motorway projects, including the 

A17 and the EN 18, in Évora. 

The distribution system responded fully 

to market demands. In a year in which fuel 

prices and maritime freights were extremely 

high, transport cost management was 

a priority which was managed with success; 

the average transport price per ton of 

cement sold in Mainland Portugal came 

down by 7%. 

The cement produced at the three plants 

continues to present fairly homogenous 

final characteristics and high quality standards, 

an aspect which is regarded key 

in sustaining general market recognition 

of the highest standards adopted by 

Secil. 

Petcoke prices climbed sharply, up 

by an average of 50%, and having reached 

record levels by middle of the year. 

The cement plants have made considerable 

efforts to cut their production 

costs. Its streamlining efforts have been 

fundamental to limiting the negative 

effects of increased energy costs. Increased 

use has been made of residue 

both for power generation and as a raw 

material, and the percentage of clinker 

incorporation in cement has been further 

reduced. 

3.2.2. PRODUCTION 

Total cement production stood at 3.3 million 

tons, down by 7%, due in part to the 

decline in demand in the last quarter of 

the year. The cement mills worked to near 

full capacity levels over the year. 


Grey Cement 1 000 t 3 452 3 217 - 7% 

White Cement 1 000 t 99 100 + 1% 

Total 1 000 t 3 551 3 317 - 7% 

The three plants have continued and increased 

the use of ordinary industrial residue as 

a substitute for thermal fuel. Use of hazardous 

waste was resumed at the Outão plant 

after a ruling by the Supreme Administrative 

Court in January. 

Overall, use of alternative thermal fuel 

rose from a rate of 15.2% in 2007 to 18.1% 

in 2008. 

The Outão plant registered in March with 

EMAS (Eco Management Audit Scheme). 

The Maceira-Liz plant awaits issuance of 

its environmental licence pursuant of the 

application process which commenced in 

late 2006. 

Overall, actual CO 2 emissions were 

down by 92 000 tons and did not exceed the 

annual license limits allocated to Secil within 

the PNALE.

3.2.3. HUMAN RESOURCES 

Efforts continued to improve the motivation 

and productivity of our human resources, 

and also help our employees to 

understand and accept the culture and 

objectives of the Group. 

Simultaneously to the policy of streamlining 

human resources, the Group has 

sought to recruit skilled employees, with 

seventeen new employees being contracted. 

In December, the Group had a workforce 

of 682 (627 permanent and 55 temporary 

employees). 

3.2.4. INVESTMENT 

Significant capital expenditure projects 

were launched and undertaken in order 

to improve the performance of the plants 

and their preparation for use of waste as 

an energy source, as well as to improve 

the quality of products and services supplied, 

environmental conditions and customer 

service. 

Capital expenditure stood at a total of 

22.1 million euros. Key projects included: 

■ Preparation at the three plants of the 

FINANCIAL INDICATORS 

alternative fuel facilities for the use of 

RDF (residue derived fuels); 

■ Completion of work on the tyre shredding 

facility at the Outão plant; 

■ Preparation for use of alternative fuels 

at the main burner and kiln pre-heater at 

the Maceira-Liz plant; 

■ Start-up of a research project at the 

Pataias plant for use of CO2 to farm 

micro-algae. 

3.2.5. RESULTS 

Turnover stood at 315 million euros, up by 

11% on 2007. This growth was due 

essentially to rising prices in the internal 

and external markets. 

EBITDA stood at 99 million euros, up by 

11% on 2007. This positive performance 

was achieved despite increased prices 

for thermal fuels and maritime 

freights and was due primarily to increased 

sales prices, greater use of alternative 

fuels and tight control of production 

costs and overheads. 

20 | 21 

ANNUAL REPORT 

SECIL 2008 


Plants 3 3 0% 

Turnover M€¤ 285 315 + 11% 

EBITDA M€¤ 89 99 + 11% 

Capex M€¤ 23 22 - 4% 

Personnel 691 682 - 1%

3.2.6. PROSPECTS FOR 2009 

The prospects for the domestic 

and foreign markets are markedly 

negative, and are clearly dependant 

on the continued duration 

of the widespread economic and 

financial crisis which has affected 

most developed countries, and 

has started to impact emerging 

economies. 

3.3. READY-MIX CONCRETE 

AND AGGREGATES 

The ready-mix Concrete market 

contracted by 6% in relation to 

2007, due to a significant falloff 

in the residential construction 

sector. 

In this context, sales decreased 

in quantity (- 4%) and in 

value (- 1%). As with cement, 

concrete sales fell sharply in the 

final quarter of the year. Performance 

was down on the previous 

year because of the decline in sales 

and rising fuel prices. EBITDA stood at 9.3 

million €, 20% lower than in 2007. 

READY MIX CONCRETE 

3. Portugal 


Concrete Plants 44 45 + 2% 

Sales 1 000m 3 

2 060 1 973 - 4% 

Turnover 1 000€ 117 471 115 836 - 1% 

EBITDA 1 000€ 11 689 9 339 - 20% 

Capex 1 000€ 2 259 2 127 - 6% 

Headcount 331 308 - 7% 

Major developments include the replacement 

of the Vila Real plant, the revamping 

of the Amarante plant and acquisition 

of seven concrete mixer trucks. 

In 2009, business is expected to perform 

in line with the construction depen- 

dant sectors, with a reduction in turnover 

and margins, which could be very sharp 

if the national and international situation 

substantially deteriorates further. Sales of 

aggregates were down by 3% and 5% in 

value and volume terms respectively. 

EBITDA stood at 4.0 million€, up by 

4% on the previous year. This was achieved 

through increased selling prices and 

tight cost controls in a year in which energy 

costs rose significantly.

AGGREGATES 

Major developments included implementation 

of a quality management system and, 

in terms of capital expenditure acquisition of 

a mobile crushing plant and a mill for the 

sand plant (Atouguia) and a loading shovel 

(Mexilhoeira). 

Another important development was 

thecquisition of Colegra and neighbouring 

land, which has substantially increased the 

Secil-Britas’ stone reserves in the Penafiel 

area.The prospects for 2009 are similar to 

those for ready-mix concrete. 

3.4. PRECAST CONCRETE 

In the course of 2008, Secil undertook a 

major restructuring of its holdings in this 

sector. 

In June, Secil Unicon acquired a further 

15% stake in Secil Prebetão, making it its 

sole shareholder. 

This was followed by the merger of 

Rubetão into Secil Prebetão in December, 

with Secil Unicon holding 79.6% of the share 

capital of the merged company. 

22 | 23 

ANNUAL REPORT 

SECIL 2008 


Crushing plants 7 7 0% 

Sales 1 000t 3 556 3 370 - 5% 

Turnover 1 000€ 19 235 18 698 - 3% 

EBITDA 1 000€ 3 808 3 958 + 4% 

Capex 1 000€ 1 570 2 000 + 27% 

Headcount 128 130 + 2% 

PRECAST CONCRETE 

The business of Group companies in this 

sector continues to be severely hampered 

by the continuing recession in the sector, 

and demand for precast concrete is expected 

to decline further. 

The situation of surplus supply has 

caused fierce competition in a market 

scenario of falling selling prices over the 

last six years, leading many of its competitors 

into bankruptcy. 

2007 2008 (1) 

VARIATION 

Plants 7 8 + 14% 

Sales 1 000t 127 119 - 6% 

Turnover 1 000€ 9 228 8 836 - 4% 

EBITDA 1 000€ - 149 323 + 317% 

Capex 1 000€ 745 171 - 77% 

Headcount 123 130 + 6% 

(1) Includes the accounts of Secil Prebetão for the period January-November and those of Rubetão for the period August-November, consolidated pro rata 

to Secil’s holding; the accounts of Argibetão correspond to the period January-December and are consolidated 100%. 

Sales of Group companies declined 6% in 

volume and 4% in value terms in the year 

under review. 

EBITDA for the year was positive, at 

around 323 000 euros, part of which resulted 

from the merger referred to above. 

Secil Prebetão has so far weathered the 

crisis with its merger with Rubetão.Net profit 

appropriated by the Group was positive, 

at 275 000 €, much better than in the previous 

year (- 284 000 €). 

Argibetão recorded positive performance, 

albeit down on the previous year, due 

essentially to a drop in turnover, limited by 

the fact that the company continued to keep 

tight control over its costs base. 

For 2009, the prospects continue to 

point to a difficult year for companies operating 

in this segment, with no improvement 

expected in demand for precast products. 

The merger carried out in 2008 placed the 

Group in a stronger and more flexible position 

to face the foreseeable difficulties.

3.5. MORTARS AND BINDERS 

Despite the continuing crisis in the residential 

construction sector, the binder market 

has continued to register moderate growth, 

albeit down on previous years. This growth 

has continued due to the replacement of 

traditional mortars made on site by industrial 

mortars. For the same reason, the market 

for hydraulic lime continues to contract. 

This business unit increased its turnover 

MORTARS AND BINDERS 

Further moderate growth 

is expected in 2009 in 

the mortar market assuming 

no further significant 

deterioration in the 

overall economic context 

and the construction 

sector. Simultaneously, 

the hydraulic lime market 

is expected to continue 

to shrink, as in recent 

years. 

3. Portugal 

by 8% over 2007. Despite this growth, 

EBITDA fell slightly due to rising distribution 

costs and lower sales prices in the 

second half. 

Important developments included the 

extension of the Quality Certification at 

the Loulé plant, increased production 

capacity at the Pataias plant and investment 

in equipment for supplying binders 

to construction sites. 


Plants 5 5 0% 

Sales of Mortars 1 000t 397 436 + 10% 

Sales of Mortar fixative 1 000t 7 6 - 14% 

Sales of hydraulic lime 1 000t 34 32 - 6% 

Turnover 1 000€ 20 556 22 187 + 8% 

EBITDA 1 000€ 3 726 3 689 -1% 

Capex 1 000€ 1 533 1 174 - 23% 

Employees 95 95 0% 

Maceira-Liz Plant

3.6. MADEIRA 

The construction sector 

in Madeira recorded modest 

overall growth. This 

growth was fundamentally 

due to public works, 

due to the rescheduling 

of public investment 

programme, given that 

the residential and private 

construction sector 

continues in sharp 

decline. 

Cement consumption 

is expected to have 

increased by 3% in relation 

to 2007, but this 

was not felt in the residential 

and private construction 

markets which 

are the main markets for the companies 

in the Cimentos Madeira Group. In this 

context, Cimentos Madeira recorded an 

CIMENTOS MADEIRA 

Major developments included completion 

of the CE labelling process for 

aggregates produced by Pedra Regional 

on Porto Santo, and the operations 

of the Cimentos Madeira labo- 

Porto Santo’s Depot 

overall reduction in sales of 12%, resulting 

in a decline in operating performance in 

comparison to the previous year. 

ratory which grew by around 3.5%. 

Despite the general recession, construction 

business is expected to pick up in 

2009, essentially due to the public 

investment programme. 

24 | 25 

ANNUAL REPORT 

SECIL 2008 

In view of the difficult market 

situation, measures were adopted 

to reduce the negative impact 

of lower sales. Its precast 

concrete operations have been 

closed down, with the closure 

of Promadeira and the temporary 

suspension of operations at 

Madebritas and the Santa Cruz 

concrete plant. 


Cement Depots 3 3 0% 

Concrete plants 4 4 0% 

Crushing plants 2 2 0% 

Precast lines (1) 1 1 0% 

Cement sales 1 000t 260 225 - 14% 

Ready-mixed sales 1 000m 3 

150 98 - 35% 

Aggregates sales 1 000m 3 

134 95 - 29% 

Precast sales 1 000t 17 7 - 59% 

Turnover 1 000€ 32 867 28 884 - 12% 

EBITDA 1 000€ 3 417 2 887 - 16% 

Capex 1 000€ 449 202 - 55% 

Headcount 95 72 - 24% 

(1) Production line shuted down during 2008.

3.7. USE OF WASTE AS ALTERNATIVE 

ENERGY SOURCES 

Secil is involved in various business projects 

with a view to reusing residues as fuels 

and raw materials. 

In the course of the financial year it disposed 

of its holding in Sobioen, which operates 

in the biomass sector. 

ORDINARY WASTE 

3. Portugal 

3.7.2. SLAG 

Work was completed in 2008 on transforming 

blast furnace granulated slag 

into a cemenitious product, with production 

of 46 000 tons for incorporation 

in cement and concrete. 

The company continued to explore 


Sales 1 000t 56 79 + 41% 

Turnover 1 000€ 5 544 6 430 + 16% 

EBITDA 1 000€ 962 1 338 + 39% 

Capex 1 000€ 119 209 + 76% 

Headcount 3 3 0% 

Turnover stood at 6.4 million euros, representing 

an increase of 16% over 2007. EBIT- 

DA stood at 1.3 million euros, up by 39%, 

reflecting significant improvement in the 

company’s performance. 

Despite the negative economic environment, 

business is expected to grow in 2009. 

SLAG 

3.7.1. ORDINARY WASTE 

AVE – Gestão Ambiental e Valorização 

Energética consolidated its growth and pursued 

a strategy of recycling industrial waste 

as secondary raw material and alternative 

fuel, in line with best environmental practice. 

Work continued in 2008 with a view to 

diversification and operation in new areas of 

waste management. 

other forms of solid waste with pozzolanic 

properties and reactivity which, 

correctly milled can be used in cement, 

and trials are underway for further operations 

in this sector. 


Plants 1 1 0% 

Sales 1 000t 74 46 - 38% 

Turnover 1 000€ 1 793 1 403 - 22% 

EBITDA 1 000€ 890 420 - 53% 

Capex 1 000€ 0 0 - 

Headcount 4 4 0%

4. TUNISIA 

4.1. MACROECONOMIC 

BACKGROUND 

The Tunisian economy was unaffected in 

2008 by the international financial crisis. 

Its GDP is forecasted to have grown by 

6.1%, similar to the growth rate of 2007. 

This was achieved through growth in 

the service sector, especially in telecommunications 

(+ 13%), and also in the 

machine tooling and electrical goods 

industry (+ 9%). 

MARKET 

Société des Ciments de Gabès increased 

its sales on the domestic market by around 

10% and its exports by approximately 

24%. Very favourable margins were obtained 

on export sales. 

4. Tunisia 

Growth in construction materials was estimated 

to be 5.7%, higher than the 3% 

estimated for cement consumption. 

The considerable delay in approval and 

execution of major projects in the 11th 

Five Year Development Plan helped to 

keep a limitation on growth cement 

demand. 

Inflation stood at 5.7%, up from 2007 

(3.1%). The Central Bank’s leading interest 

rate stood at 5.2%, close to the previous 

year’s level. 

26 | 27 

ANNUAL REPORT 

SECIL 2008 

The Tunisian dinar devaluated further 

against the euro, although the devaluation 

of 2% was less than in previous 

years. 

4.2. CEMENT 

4.2.1. MARKETING AND SALES 

Total consumption of cement and artificial 

lime stood at 6.3 million tons, representing 

an increase of 3% over the 

previous year. In the southern part of 

the country, growth was more significant 

at 5.7%. 

2006 2007 2008 VARIATION 

Cement 1 000t 5 594 5 700 5 912 + 4% 

Artificial Lime 1 000t 379 367 358 - 2% 

Total 1 000t 5 973 6 067 6 270 + 3% 

Sales in value totalled 56.7 million euros, 

representing an important growth of 20% 

due to selling price and sales volume 

increases. 



Domestic Market 1 000€ 39 721 46 397 + 17% 

Foreign Market 1 000€ 7 478 10 261 + 37% 

Total 1 000€ 47 198 56 658 + 20% 

Domestic Market 1 000t 1 022 1 121 + 10% 

Foreign Market 1 000t 147 182 + 24% 

Total 1 000t 1 169 1 303 + 11%

In June, under the regulated price system 

which remains in force, the Government 

established an increase of 7%. 

Yet again and contrary to expectations 

and in breach of prior commitments, 

cement prices were not deregulated. It is 

important to recall that during the privatisation 

phases of the cement industry, 

price deregulation was expressly provided 

for in the relevant tender documents. 

PRODUCTION 

4.2.3. HUMAN RESOURCES 

SCG’s total workforce amounted to 345 

workers at the end of 2008, 35 less than 

at the end of 2007, and the company continued 

with its policy of streamlining 

human resources, at the same time as 

recruiting young and 

qualified technical staff 

for key areas with a view 

to modernizing the 

company. 

Under the technical 

assistance and technology 

transfer contract 

concluded with Secil, a 

number of on the job 

and training activities 

were organized during 

the year. The company 

also continued to support 

social schemes and 

several regional and 

national funds. 

4. Tunisia 

4.2.2. PRODUCTION 

Clinker output stood at slightly over one 

million tons, up by 1% on the previous year. 

Significant increases in the prices for 

thermal fuels and electricity had a significant 

negative effect on clinker production costs. 

Production of cement and artificial lime 

stood at 1.3 million tons, up significantly 

on the previous year (+ 11%). 

4.2.4. INVESTMENT 

Investment totalled 3.1 million euros, 

including the installation of a third generation 

separator in one of its cement mills 

and, a system for recovering by-pass dust 

and transporting it to the cement mills. 


Cement 1 000t 1 101 1 236 + 12% 

Artificial Lime 1 000t 65 61 - 5% 

Total 1 000t 1 166 1 298 + 11% 

SC Gabès Plant 

In view of the potential growth in the 

domestic and export markets within the 

natural area of influence of the Gabès 

plant, approval was obtained from the 

authorities in 2008 for a project to expand 

plant capacity. The plans and schedule 

for implementation of 

this project are currently 

being evaluated. 

4.2.5. RESULTS 

SCG recorded a downturn 

in performance. 

Although turnover was 

up by 17%, EBITDA fell 

by 15% to 13.9 million 

euros. In effect, growth 

in sales on the domestic 

and foreign markets 

was not sufficient to 

compensate exceptional 

increases in the cost 

price of thermal fuels 

and electricity.


4.2.6. PROSPECTS FOR 2009 

The effect of the global economic-financial 

crisis will be felt in Tunisia in 2009 

and growth in cement consumption is 

expected to slow in relation to 2008. 

Moreover, growth in earnings continues 

to be constrained by the attitude of the 

Tunisian Government with regard to price 

In this context, sales of ready-mix concrete 

grew by approximately 7%, despite the 

decline in the Group’s main market (Sfax). 

Precast concrete sales grew by 20%, turning 

around the trend recorded in 2007. 

There was continued robust growth in 

turnover, up by 17% on the year. EBITDA 

stood at 779 000€, representing an incre- 

deregulation: either it will have to proceed 

with deregulation, which has been successively 

postponed for years, or else it will 

have to maintain the current controlled 

price system, under which it fixes price 

increases administratively. In the latter 

case, it is hoped that the negative trends 

in the main cost components over the last 

year are at least compensated for. 

ase of 75% and reflecting a remarkable 

improvement in the performance of this unit. 

Investment projects included the refitting 

of the fleet, and the acquisition of four 

concrete mixer trucks. 

28 | 29 

ANNUAL REPORT 

SECIL 2008 


Plants 1 1 0% 

Turnover 1 000€ 51 062 59 542 + 17% 

EBITDA 1 000€ 16 313 13 901 - 15% 

Capex 1 000€ 6 505 3 135 - 52% 

Average Headcount 380 345 - 9% 

READY MIXED AND PRECAST 

4.3. READY MIX AND PRECAST 

CONCRETE 

The ready-mix and precast concrete markets 

continued to grow in the regions 

where Sud Béton and Zarzis Béton operate 

(Sfax, Gabès and Zarzis). 


Concrete Plants 4 4 0% 


125 134 + 7% 

Pre-cast Lines 1 1 0% 

Sales 1 000t 15 18 + 20% 

Turnover 1 000€ 5 137 6 023 + 17% 

EBITDA 1 000€ 444 779 + 75% 

Capex 1 000€ 343 454 + 32% 


Growth in the ready-mix concrete market 

is expected to slow in 2009 due to the 

adverse effects of the international economic 

and financial crisis. Despite this, a positive 

effect is still expected by the commencement 

of a number of major public 

works projects. It is hoped that the Group 

companies will be able to maintain the pace 

of growth recorded in recent years.

5.1. 

MACROECONOMIC 

BACKGROUND 

The Lebanese economy 

improved significantly, 

especially in the first 

nine months of the year, 

with growth in GDP estimated 

at 4.2%. 

The Lebanese economy 

is thought to have 

enjoyed in 2008 its best 

year since 2004, due largely 

to stabilization of 

the political situation and 

a general improvement 

in security, with a very 

positive effect on its 

economic agents. 

This improvement 

was felt particularly in 

MARKET 

5. Lebanon 

2006 2007 2008 VARIATION 

Cement 1 000t 3 348 3 945 4 206 + 7% 

In this context, Sibline increased its sales on 

the internal market by approximately 5%. 

Exports were down by 17% on the previous 

year. Overall, the company recorded 

an increase in sales of approximately 3%. 


Ciments 

de Sibline Plant 

important business sectors, such 

as tourism and construction. 

The construction and property 

sectors recorded very 

appreciable growth which may 

be expected to continue, albeit 

at a more modest pace, due to 

the possible effects of the international 

crisis. 

The average inflation rate stood 

at 12%, rather higher than in 

2007 (4%). The lending rate stood 

at 9.8%, slightly lower than 

in the previous year. 

5.2. CEMENT 

Cement demand stood at 4.2 

million tons, up by 7% from 2007. 

Part of this growth was due to 

the informal market, with Syria 

as the final destination. 


Domestic Market 1 000t¤ 876 923 + 5% 

Foreign market 1 000t¤ 89 74 - 17% 

Total 1 000t 965 996 + 3%

Cement output stood at 989 000 tons, up 

by 8% on the previous year. 

EBITDA stood at 18.2 million €, at 

roughly the same level, in euros, as in 


30 | 31 

ANNUAL REPORT 

SECIL 2008 


Plants 1 1 0% 

Turnover 1 000€ 48 331 56 996 + 18% 

EBITDA 1 000€ 18 080 18 170 + 0% 

Capex 1 000€ 1 961 3 006 + 53% 

Employees 424 413 - 3% 

If the political situation remains stable, 

the construction market should continue 

to grow in 2009, albeit at a moderate pace. 

In this context, Sibline is expected to increase 

sales and improve its performance. 

READY-MIX CONCRETE 

2007. This amounts to positive performance 

in view of rising prices for thermal 

fuels and the appreciation of the 

euro against the USD over the year, 

around 7%. 

5.3. READY-MIX CONCRETE 

Soime recorded stronger business than 

in 2007, selling 145 000 m 3 of readymixed 

concrete, 2% more than in the 

previous year. 


Concrete Plants 1 1 0% 


141 145 + 2% 

Turnover 1 000€ 5 756 6 611 + 15% 

EBITDA 1 000€ 511 458 - 10% 

Capex 1 000€ 123 371 + 202% 

Employees 53 68 + 28% 

Despite an increase of 15% in turnover, 

which stood at 6.6 million €, EBITDA was 

down by approximately 10%. This was 

essentially due to the appreciation of the 

and also to increased costs, including the 

cost of new personnel for the concrete plant 

currently in the preparation stage. 

In 2009, the ready-mixed market is expected 

to grow in line with the cement market. 

Soime expects to expand its business 

and to improve its performance.

6.1. 

MACROECONOMIC 

BACKGROUND 

The most significant 

political development in 

Angola was the September 

elections to the 

National Assembly. This 

represented a further important 

step towards definitive 

stabilization of the 

sentiment of peace and 

towards continuation of 

the process of national 

reconstruction, which 

has reached all areas of 

Angolan territory and also 

sectors of activity. 

Despite the international 

financial crisis, the 

Angolan economy once 

again enjoyed significant 

growth in 2008 on the 

strength of the petroleum 

sector and thanks to the 

process of national reconstruction 

financed by 

external credit lines contracted 

mainly from China. 

The process of national reconstruction 

has levered growth in the non-petroleum 

sector, which in the last three years has presented 

healthy growth, in excess of that 

recorded by the oil sector. Overall, gross 

domestic product is thought to have grown 

in the order of 13%, slowing from the 2007 

rate of 18%. 

Oil output is expected to remain at high 

levels and to continue to support growth in 

the Angolan economy, despite a foreseeable 

decline in oil prices in 2009. 

Inflation stood at 12.6%, slightly higher 

than in 2007. Unlike the previous year, the 

Kwanza fell against the US dollar by approximately 

2.2%. 

Secil’s operations in Angola continue to 

be positively affected by the impact of the 

situation described above on demand for 

construction materials, whilst still suffering 

the effects of the structural constraints on 

6. Angola 

the supply side (availability of human resources 

with adequate training, transport, power 

supply, etc.). 

However, clinker prices on the international 

market and the increase in maritime 

freights in the first half had a significant 

impact on the operations of Secil Lobito 

and on the cement market in general. 

6.2. CEMENT 

Demand for cement continued to increase 

in 2008 thanks to sustained growth in the 

economy and execution of major national 

reconstruction projects. The market was 

supplied by national producers and also by 

cement imports, as the Angolan cement 

industry lacks the capacity to respond to 

overall requirements. 

Secil Lobito recorded sales of 295 000 

tons, in quantity, and 46 million €, in value, 

representing growth of 25% and 43% respectively, 

in relation to the previous year. 

Secil-Lobito Plant

CEMENT 

Performance was significantly higher, 

with EBITDA at 5.9 million €, up by 95% 

on 2007. 

Capital expenditure totalled 4.7 million 

euros, including the clinker pre-crushing 

unit and optimization of cement mills, 

as well as preparatory work for installation 

of the new production line. 

In connection with this new production 

line, the bank financing agreements 

and the supply and construction contracts 

are in the final stages of finalization, and 

work is expected to start on the project 

during the 1st half of 2009. 

The investment value of capital expenditure 

budgeted for the new production 

line is 190 million USD and includes a 

power generation unit. With this new 

investment, Secil-Lobito will have annual 

production capacity of half a million tons 

of clinker and 1 million tons of cement. 

The proprospects for growth in the 

cement market remain favourable, both 

for the country as a whole and for the 

southern region, in view of expectations 

of public works and residential construction. 

Growth is nonetheless expected 

to slow due to adjustment to the 

Angolan Government’s budget, as a result 

of the reduction in oil revenues. 

32 | 33 

ANNUAL REPORT 

SECIL 2008 


Plants 1 1 0% 

Sales 1 000t 237 295 + 25% 

Turnover 1 000€ 31 953 45 576 + 43% 

EBITDA 1 000€ 2 999 5 855 + 95% 

Capex 1 000€ 3 315 4 701 + 42% 

Headcount 280 284 + 1%

7.1. ECONOMIC 

BACKGROUND 

Cape Verde’s economy 

continued to enjoy sustained 

growth. Gross domestic 

product is thou 

ght to have grown by 

5.9%, slightly down from 

the growth of 6.9% in 

2007 (IMF – Word Economic 

Outlook – October 

2008). 

Economic growth in 

the first half was consistent 

with that in the 

previous year, whilst a 

slowdown was gradually 

felt in the second 

half, with deceleration 

in the pace of execution 

of a number of major 

projects. 

The inflation rate stood at 6.5%, higher 

than in the previous year (4.5%). The leading 

interest rate stood at 7.25%, slightly 

lower than in 2007 (7.5%). 

CEMENT 

The construction sector experienced 

moderate growth, due essentially to private 

and residential construction. In the field of 

public investment, the main development 

was the start of extension works to the port 

in the city of Praia. 

In the political arena, the year 

was marked by municipal elections, 

in which the main opposition 

part obtained a positive result. 

In 2009 the slowdown felt in 

the construction sector since mid- 

2008 is expected to continue. 

However, the private construction 

sector should remain buoyant. 

7.2. CEMENT 

Cement consumption continued 

to enjoy moderate growth, due 

especially to private building and development 

of tourism projects. Demand for 

cement is thought to have stood at 339 000 

tons, up by approximately 8% on the 

previous year. 


Sales 1 000t 34 28 - 18% 

Turnover 1 000€ 3 712 3 188 - 14% 

EBITDA 1 000€ 42 - 1 - 102% 

Capex 1 000€ 7 5 - 29% 


Secil Cape-Verde recorded sales of 28 

000 tons which represents a decline of 

18% in relation to the previous year; turnover 

stood at 3.2 million euros, also 

down by around 14%. This reduction in 

business was due in part to the high level 

of maritime freights which made it impossible 

to achieve the desirable growth in 

sales on certain islands in the archipelago. 

7. Cape Verde 

Secil Cape-Verde 

The company’s performance was markedly 

lower than in the previous year, with 

EBITDA slightly in the red and much lower 

than in 2007. 

The construction sector and cement 

consumption are expected to slow down 

in 2009 due to the difficult situation in 

the international front.

7.3. AGGREGATES 

The aggregates market on the island of 

Santiago maintained the performance 

recorded in the second half of 2007, 

marked by the entry of two new operators 

and imports of sand from the African 

coast, thus significantly constraining the 

operations of ICV – Inertes de Cabo Verde. 

AGGREGATES 

34 | 35 

ANNUAL REPORT 

SECIL 2008 


Crushing Plants 1 1 0% 

Sales 1 000t 67 69 + 3% 

Precast lines 1 1 0% 

Precast sales 1 000t 3 1 - 67% 

Turnover 1 000€ 1 025 817 - 20% 

EBITDA 1 000€ 188 202 + 7% 

Capex 1 000€ 19 13 - 32% 

Employees 30 23 - 23% 

EBITDA stood at 202 000 euros, up by 

7% on 2007 and turning around the 

trend for deteriorating performance 

recorded in recent years, thanks to the 

cost streamlining measures adopted 

8. DEVELOPMENT 

Key developments in 2008: 

■ Acquisition, by Secil Unicon, of the 

entire share capital of Secil Prebetão 

and subsequent merger of this company 

with Rubetão. As a result of the merger, 

Secil Unicon now holds 79,6% share in 

Secil Prebetão. 

The total aggregates market on the island 

of Santiago is thought to have stood at 

490 000 tons. 

In this context, sales totalled 69 092 tons of 

aggregates and 1 462 tons of precast concrete 

products. Turnover stood at 817 000 €, 

down on the previous year (- 20%). 

towards the end of 2007. 

The construction sector on Santiago is 

expected to show signs of slowing in 

2009. In this context, the excess supply of 

8. Development 

■ Acquisition, by Ciminpart, of 50% in 

Teporset, located in Setúbal. 

■ Acquisition, by Secil-Britas, of 100% of 

the company Colegra and of a number of 

neighbouring quarries. 

■ Evaluation of various investment opportunities 

in the cement sector in countries in 

North Africa and the Middle East. 

aggregates, the possible entry of new 

operators and continued imports will 

undoubtedly have an impact on the company’s 

business and profitability.

9. CORPORATE ORGANIZATION 

With a view to the sustained development 

of the Group, a number of corporate 

departments have been set up in 

recent years. 

These departments are designed 

essentially to support business expansion, 

to promote and develop new products 

and also to align the organization 

and staff to the defined development 

strategy. 

9.1. DEVL – BUSINESS 

DEVELOPMENT DEPARTMENT 

Set up in 2007, DEVL is designed 

essentially to identify and carry through 

business opportunities in the countries 

in which the Group is planning to 

expand. 

9.2. CDAC – CEMENT 

DEVELOPMENT AND 

APPLICATIONS CENTRE 

CDAC seeks to encourage research and 

development activities in the field of 

cement products. It coordinates product 

development activities, is responsible 

for cement performance and quality 

assessment and cooperates with the 

customer technical support service. 

This centre is responsible for the 

Product Development Plan, covering 

cement, concrete, mortar, precast and 

viroc sectors, and involving the Group’s 

laboratories and their staff. The plan 

consists of approximately 40 projects 

and is implemented on the basis of the 

Group’s own resources with the support 

of Portugal’s leading universities. 

The aim of these projects is to allow 

the Group to diversify into new products 

and to adjust the range of cement products 

to the increasingly selective 

demands of users, with a view in particular 

to optimizing performance, reducing 

energy use of the useful life of 

construction works and other related 

environmental aims. 

9. Corporate Organization 

9.3. DORG – ORGANIZATIONAL 

DEVELOPMENT 

A number of initiatives have been launched 

to carry further the Group’s commitment 

to applying best practice in 

personnel management and staff development. 

These included: 

“Campus Secil – Executive Management 

Department”, geared to training 

executives in management leadership and 

designed specifically for the Group by the 

leading Portuguese Catholic University, 

involving around 35 members of management 

staff from different business areas. 

The “Welcome Programme”, designed 

to facilitate the integration of new staff in 

the Group. 

The “Secil Trainees Programme”, aimed 

at high-potential graduates with academic 

training in fundamental areas for 

business development, through an intensive 

and transversal programme aimed 

at integrating them into Secil. 

The Group has also agreed to cooperate 

with the University of Évora on a new 

degree in chemical engineering with a 

practical component to be offered in an 

industrial setting, provided by Secil. 

We should also refer the extension of 

the performance assessment model to 

include areas not previously included. 

9.4. CTEC – TECHNICAL 

CORPORATE CENTRE 

The CTEC is designed to coordinate investment, 

technical support, vocational training 

and the promotion and development of 

benchmarking between plants, so that good 

practices may be extended to all sectors. 

Work in this area included the following: 

In the field of capital expenditure, support 

for the start of work on equipping facilities 

to use RDFs – residue derived fuels – at the 

Outão, Maceira-Liz and Pataias plants, 

installation of the clinker pre-crush- 

ing unit at the 

Lobito plant and 

implementation of 

PDM enterprise management 

software. 

In the field of technical training, special 

sessions were organized on Alternative 

Fuels, Process and Quality and Environmental 

Impact Studies. 

In the field of Industrial Development, 

safety audits of the Sibline, Gabès and 

Lobito plants, and for the CO 2 sequestration 

project (micro-algae) at the Pataias plant, 

accreditation of the noise laboratory and 

diagnosis programmes for biodiversity at 

the Maceira-Liz and Pataias plants, and promotion 

of biodiversity at the Outão plant. 

9.5. CTRI – INTERNAL CONTROL 

SUPPORT 

Major activities in 2008 included the 1st 

internal audit of SCG – Société des Ciments 

de Gabès, and the start of internal control at 

Secil Betões e Inertes. 

9.6. HSWD – HEALTH AND SAFETY AT 

WORK 

Set up in 2008, the HSWD’s brief is to define 

and propose strategies and policies for 

health and safety at work at Group level. 

The main priority at present is to arrive at 

a situation where fatal accidents are eliminated 

and the number of accidents and the 

respective level of seriousness are reduced. 

To this end a system has been 

implemented for reporting, assessment 

and follow-up of accidents 

involving business 

units and, more recently, 

contractors 

which regularly 

provide 

services.

10.1. MANAGEMENT OF FINANCIAL 

RESOURCES 

The Group contracted long-term financing 

facilities totalling 150 million euros 

and renewed other short term borrowing 

facilities totalling 275 million euros, 

resulting in an overall increase in borrowing 

capacity of 425 million euros. 

10.2. RISK MANAGEMENT 

The financial year of 2008 will be marked 

as the year in which the effects and 

consequences of the sub-prime crisis, 

which initially broke out in mid-2007, 

grew dramatically worse. 

The principal monetary authorities 

took a series of measures 

to combat the crisis, 

slashing their leading rates, 

especially in the second half of 

the year. In this context, the 

ECB edged down its main bank 

lending rate from 4% to 2.5%. 

The Euribor 3-month rate, to 

which most of the Group’s borrowing 

is indexed, fell from 

4.67% at the start of the year to 

2.89% at the end. 

On the foreign exchanges, 

the rates of greatest interest to 

the Group were highly volatile 

over the year, especially the 

EUR/USD rate and, to a lesser 

extent, the EUR/TDN. 

The CO 2 emissions licenses 

market also experienced extreme 

price volatility with the prices 

of European Union emissions licenses 

(EUAs 2008) ranging between 

29.33 euros/t and 13.72 euros/t. 

INTEREST RATE RISK 

In 2005, Secil opted to partially hedge 

its interest rate risk by a structure of 

derivatives which sets a maximum value 

of the financial charges on long term 

debt with repayment in scheduled ins- 

10. Financial 

talments. At 31 December 2008, this 

debt stood at approximately 42 million 

euros and the market value of the equivalent 

hedge contract was negative, at 

approximately 130 000 euros. Accrued 

gains since the contracting of the hedge 

stood at 1.3 million euros at year end. 

EXCHANGE RATE RISK 

The Group kept to its policy of maximising 

the potential of natural cover of its exchange 

rate exposure, by setting of currency flows 

within the Group. In relation to the USD, 

the main currency towhich we are exposed, 

natural hedging was in excess of 65%. 

36 | 37 

ANNUAL REPORT 

SECIL 2008

10. Financial 

CO 2 LICENSE RISKS 

Following on the allocation of CO 2 emission 

allowances for the second phase 

of EU-ETS, which runs from 2008 to 

2012, hedging operations were carried 

out for the respective price risk, namely 

the sale of the excess allowances permitted 

under the licenses received. 

10.3. PENSION FUNDS 

With the development and worsening 

of the financial crisis, an even more conservative 

policy has been adopted for 

investment in the pension funds, eliminating 

all equities, real estate funds and 

hedge funds. As a result of this policy, 

the assets in the Group’s pension funds 

were as follows at year-end 2008: 83% 

in treasury bonds, 15% in other bonds 

and 2% in liquid assets. 

The Pension Funds of the Secil 

Group recorded the following returns in 

2008: Secil (5.25%), CMP (3.63%) and 

Uni-betão (5.16%). 

The pension funds recorded an overall 

surplus of approximately 1.8 million 

euros in relation to their actuarial liabilities 

as at 31 December 2008, calculated 

by independent specialist entities. 

In legal proceeds instituted by Secil 

against the Portuguese State, relating to 

the recovery of damages caused by the 

incorrect assessment of the liabilities 

of the CMP pension fund included in 

the confidential tendering documents 

of the privatisation of Secil and CMP, 

the State was ordered by a first level 

court to pay compensation of approximately 

3.1 million euros, plus late interest 

at the legal rate from 1994. Both 

parties, Secil and the State, have appealed 

against this decision in the Supreme 

Administrative Court. 

10.4. ALTERATION TO THE SCOPE 

OF THE CONSOLIDATED 

ACCOUNTS 

The following were the changes to the 

scope of the Secil Group’s consolidated 

accounts: 

INCLUDED: 

■ Colegra, acquired on 4 December, 

100% owned by SBI; 

■ Teporset, acquired on 27 June, 50% 

acquired by Ciminpart; Teporset’s accounts 

are consolidated on the proportionate 

consolidation method; 

■ Rubetão, merged Secil Prebetão 

on 31 July, the merged company 

is 79.6% owned by Secil 

Unicon; Secil Unicon’s accounts 

are consolidated on the proportionate 

consolidation method. 

EXCLUDED: 

■ Sobioen, disposed of on 4 

December; 

■ Carcubos, liquidated on 12 

November; 

■ Camilo Lopez, liquidated on 

11 December. 

10.5. DISTRIBUTION OF 

FREE RESERVES 

By resolution of the General Meeting 

held on 30 September 2008, 

free reserves of 18,508,672.80 

euros were distributed.

PROPOSAL FOR APPROPRIATION OF 

PROFITS 

The net profits for the period of Secil – 

Companhia Geral de Cal e Cimento, S.A. 

are 62,776,789.16€, and dividends of 

42,477,149.00€ are available for distribution. 

The Board of Directors proposes that 

profits be appropriated as follows: 

THE BOARD OF DIRECTORS 

Outão, 5 March of 2009 

Chairman 


Directs 

Carlos Eduardo Coelho Alves 

Francisco José Melo e Castro Guedes 

Carlos Alberto Medeiros Abreu 

Sérgio Alves Martins 

Gonçalo de Castro Salazar Leite 

João Vendeirinho Almeida 

Anthony Creedon 

Jim Mintern 




Henry Morris 



Mário José de Matos Valadas 

38 | 39 

ANNUAL REPORT 

SECIL 2008 

LEGAL RESERVE 3 138 839,46 € 

Dividend of 0.84€ per share for the 50 023 440 shares in 

circulation, making a total of 42 019 689,60 € 

(the 2 896 560 shares held by 

Secil – Companhia Geral de Cal e Cimento, SA are excluded) 

Free Reserves 17 618 260,10 €

Consolidated Financial 

Statements 

Viana do Castelo City Library

Landscape recovery in Secil-Outão Quarries 

Consolidated Financial Statements 

1 Consolidated Income Statement 

2 Consolidated Balance sheet 3 Consolidated Statement of Cashflows 

4 Index to the Notes to the Consolidated Financial Statements 

5 Notes to the Consolidated Financial Statements 

56 40 | 41 

RELATÓRIO ANNUAL & CONTAS REPORT 

SECIL SECIL 2008

1. Consolidated Income 

Statement 

CONSOLIDATED INCOME STATEMENT AS OF DECEMBER 31, 2008 AND 2007 

Amounts in Euro Note 31/12/08 31/12/07 

Sales 562 415 224 525 747 959 

Service income 37 575 633 40 172 610 

Cash discounts (1 478 970) (1 745 934) 

Movement in finished goods and work in progress 7 750 055 2 227 023 

Cost of sales on goods held for resale (168 452 485) (153 444 173) 

Third party supplies (201 137 468) (182 818 765) 

Personnel costs 5 (80 188 736) (78 562 666) 

Inventory adjustments (loses) / reversals 24 (253 542) (690 360) 

Impairment charges on receivables 24 (2 302 725) (1 058 284) 

Provisions (increase) / decrease 29 (26 074) (80 761) 

Other operating income 7 77 429 357 10 611 282 

Other operating costs 8 (74 034 723) (17 257 528) 

Earnings before interest, taxes, depreciation, 

amortisation, government grants, 

group share of associates, profits and gain/losses 

on disposal of non-current assets 157 347 694 143 100 403 

Depreciation and amortisation ((costs) / reversals) 17 (56 793 449) (61 487 008) 

Government grants 32 1 376 110 1 924 772 

Gains / (losses) on non-currents assets 593 155 675 227 

Impairment of non depreciated/amortized assets ((losses) / reversals) 24 (3 078 879) (542 140) 

Earnings before interest, 

taxes and profits 

in associated companies 99 444 631 83 671 254 

Group share of associated companies profits 9 324 835 921 607 

Interest and similar income 10 3 042 012 2 312 070 

Interest and similar expenses 10 (11 689 175) (11 775 184) 

Profit before tax 91 122 303 75 129 747 

Income tax 11 (20 790 259) (19 762 938) 

Group profit for the financial year 70 332 044 55 366 809 

Attributable to Secil shareholders 62 776 790 50 409 007 

Attributable to minority interests 12 7 555 254 4 957 802 

Earnings per share 

Basic earnings per share, Eur 13 1,29 1,03 

Diluted earnings per share, Eur 13 1,29 1,03

2. Consolidated 

Balance Sheet 

CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008 AND 2007 

42 | 43 

ANNUAL REPORT 

SECIL 2008 

Amounts in Euro Note 31/12/08 31/12/07 

ASSETS 

Non-Current Assets 

Goodwill 15 124 152 356 126 901 593 

Other intangible assets 16 40 031 139 106 306 

Plant, property and equipment 17 436 334 260 441 006 904 

Investment properties 18 331 914 347 910 

Investment in associates 19 1 102 148 1 146 580 

Deferred tax assets 27 14 293 124 18 452 345 

Other non-current assets 20 9 313 698 6 270 268 

625 558 639 594 231 906 

Current Assets 

Inventories 21 95 308 187 69 803 272 

Receivables and other current assets 22 92 502 003 103 840 941 

State and other public entities 23 12 857 929 16 904 954 

Cash and cash equivalents 30 34 161 810 54 299 595 

234 829 929 244 848 762 

Total Assets 860 388 568 839 080 668 

EQUITY AND LIABILITIES 

Capital and Reserves 

Share capital 25 264 600 000 264 600 000 

Treasury shares 25 (22 609 745) (22 609 745) 

Legal reserve and other reserves 26 132 284 953 120 062 442 

Translation reserves 26 (72 404 274) (73 104 903) 

Retained earnings 26 28 549 770 22 919 184 

Consolidated net profit for the year 62 776 790 50 409 007 

Consolidated Shareholders' equity 393 197 494 362 275 985 

Minority interest 13 57 429 062 51 302 437 

Total Equity 450 626 556 413 578 422 

Non-current liabilities 

Deferred tax liabilities 27 48 748 942 48 112 658 

Pensions and other post-employment benefits 28 23 126 827 28 375 916 

Provisions 29 14 733 210 14 395 067 

Interest-bearing liabilities 30 89 633 570 121 908 605 

Other non-current liabilities 31 2 702 629 2 149 951 

178 945 178 214 942 197 

Current liabilities 

Interest-bearing liabilities 30 69 276 110 82 871 687 

Payables and other current liabilities 32 123 169 088 91 859 892 

State and other public entities 23 38 371 636 35 828 470 

230 816 834 210 560 049 

Total liabilities 409 762 012 425 502 246 

Total equity and liabilities 860 388 568 839 080 668

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE FINANCIAL YEAR 

AS AT 31 DECEMBER 2008 AND 2007 

Amounts in Euro 31/12/08 31/12/07 

Currency translation differences 3 611 308 (15 578 416) 

Actuarial gains and losses 4 376 295 4 199 081 

Fair value in associated companies 668 939 (2 513 222) 

Fair value in financial derivative instruments 2 616 782 - 

Other movements (1 900 000) - 

Tax on items directly included in equity (1 347 630) (1 101 887) 

Profit directly recognized 

in equity (8 025 694) (14 994 444) 

Retained earnings for the year excluding minority interests 70 332 044 55 366 810 

Total recognized income 

and expenses for the year 78 357 738 40 372 366 

Attributable to: 

Secil shareholders 67 473 163 40 903 974 

Minority interests 10 884 575 (531 608) 

78 357 738 40 372 366 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

FROM 1 JANUARY 2007 TO 31 DECEMBER 2008 

Share Treasury Legal and 

capital shares other reserve 

Equity as of January 1, 2007 264 600 000 (22 609 745) 101 251 961 

Currency translation differences: 

- Subsidiaries - - - 

- Associates - - - 

Transfer of revaluation reserves - - (799 249) 

Distribution of net profit of 2006: 

- Transfer to reserves - - 39 118 870 

- Dividends paid - - - 

Distribution of reserves - - (19 509 140) 

Changes in actuarial assumptions - - - 

Fair value in associated companies - - - 

Change in consolidation scope - - - 

Net profit for the year - - - 

Equity as of December 31, 2007 264 600 000 (22 609 745) 120 062 442 

Currency translation differences: 

- Subsidiaries - - - 

Transfer of revaluation reserves - - (668 916) 

Distribution of net profit of 2007: 

- Transfer to reserves - - 31 400 100 

- Dividends paid - - - 

Distribution of reserves - - (18 508 673) 

Changes in actuarial assumptions - - - 

Fair value in associates (Note 19) - - - 

Fair value adjustments of derivative financial instruments 

Other movements 

Change in consolidation scope - - - 

Net profit for the year - - - 

Equity as of December 31, 2008 264 600 000 (22 609 745) 132 284 953

44 | 45 

ANNUAL REPORT 

SECIL 2008 

Translation Retained Net profit Minority 

reserves earnings for the year Total interests Total 

(63 109 772) 20 638 160 58 127 777 358 898 381 13 596 642 372 495 023 

(9 995 131) - - (9 995 131) (5 583 285) (15 578 416) 

- - 

- 799 249 - - - - 

- - - - - 

- - (39 118 870) - - - 

- 489 398 (19 008 907) (18 519 509) (996 588) (19 516 097) 

- 502 279 - (19 006 861) (19 006 861) 

- 3 003 320 - 3 003 320 93 873 3 097 194 

- (2 513 222) - (2 513 222) - (2 513 222) 

- - - - 39 233 992 39 233 992 

- - 50 409 007 50 409 007 4 957 803 55 366 810 

(73 104 903) 22 919 184 50 409 007 362 275 985 51 302 437 413 578 422 

(700 629) - - 700 629 2 910 679 3 611 308 

- 668 916 - - - - 

- - (31 400 100) - - - 

- 489 402 (19 008 907) (18 519 505) (4 882 643) (23 402 148) 

- 476 524 - (18 032 149) - (18 032 149) 

- 3 223 097 - 3 223 097 (4 486) 3 218 611 

- 245 812 - 245 812 423 127 668 939 

1 923 335 - 1 923 335 - 1 923 335 

(1 396 500) - (1 396 500) - (1 396 500) 

- - - 124 694 124 694 

- - 62 776 790 62 776 790 7 555 254 70 332 044 

(72 404 274) 28 549 770 62 776 790 393 197 494 57 429 062 450 626 556

3. Consolidated 

Statement of Cashflow 

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2008 AND 2007 

Amounts in Euro Notes 31/12/08 31/12/07 

OPERATING ACTIVITIES 

Received from customers 688 324 042 656 641 045 

Payments to suppliers (443 653 875) (396 345 604) 

Payments to employees (53 902 290) (61 776 373) 

Cashflow generated from operations 190 767 877 198 519 068 

(Payments)/ receipts of income tax (8 099 103 (519 633) 

Other (payments)/ receipts from operating activities (69 979 564) (62 443 242) 

Cashflows from operating activities (1) 112 689 210 135 556 193 

INVESTING ACTIVITIES 

Receipts relating to: 

Financial investments 1 11 649 213 

Property, plant and equipment 232 486 994 001 

Interest and similar income 2 232 299 1 757 453 

Dividends 854 177 1 084 688 

3 318 963 15 485 355 

Payments relating to: 

Financial investments (4 057 099) (43 078 616) 

Cash and cash equivalents from changes in consolidation scope 163 984 10 223 944 

Property, plant and equipment (36 941 216) (40 454 029) 

Interest and similar expenses (3 278 189) (58 960) 

(44 112 520) (73 367 661) 

Cashflows from investing activities (2) (40 793 557) (57 882 306) 

FINANCING ACTIVITIES 

Receipts relating to: 

Borrowings 415 010 307 163 660 450 

Interest and similar gains 661 535 - 

415 671 842 163 660 450 

Payments relating to: 

Loans (457 496 942) (172 542 534) 

Amortisation of financial leases (144 642) (320 966) 

Interest and similar expenses (8 854 149) (10 612 741) 

Dividends (41 671 767) (37 526 370) 

(508 167 500) (221 002 611) 

Cash flow from financing activities (3) (92 495 658) (57 342 161) 

CHANGES IN CASH AND CASH EQUIVALENTS (1)+(2)+(3) 20 600 005 20 331 726 

EXCHANGE DIFFERENCES IMPACT 462 220 (3 834 322) 

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 54 299 595 37 802 191 

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 30 34 161 810 54 299 595

Holy Trinity Church-Fátima 

46 | 47 

ANNUAL REPORT 

SECIL 2008

Lezirias Bridge, Carregado

INDEX TO THE NOTES TO THE 

CONSOLIDATED 

FINANCIAL STATEMENTS 

1. Summary of main 

accounting policies 50 

1.1. Basis of presentation 50 

1.2. Basis of preparation 50 

1.3. Basis of consolidation 50 

1.3.1 Subsidiaries 50 

1.3.2 Associates 50 

1.3.3 Joint Ventures 50 

1.4. Segment Reporting 50 

1.5. Foreign Currency Translation 51 

1.5.1. Functional and Presentation 

Currency 51 

1.5.2. Balances and transactions 

expressed in foreign 

currencies 51 

1.5.3. Group Companies 52 

1.6. Intangible Assets 52 

1.7. Goodwill 52 

1.8. Property, Plant and Equipment 52 

1.9. Investment Properties 52 

1.10. Impairment of non-current 

Assets 52 

1.11. Financial Investments 53 

1.12. Derivative Financial 

Instruments 53 

1.13. Income Tax 53 

1.14. Inventories 54 

1.15. Receivables and Other 

Current Assets 54 

1.16. Cash and Equivalents 54 

1.17. Share Capital and 

Treasury Shares 54 

1.18. Interest-bearing liabilities 55 

1.19. Borrowing Costs 55 

1.20. Provisions 55 

1.21. Employee Benefits 55 

1.21.1. Defined benefit plans 55 

1.21.2. Other post-Employment 

Benefits 56 

1.21.3. Holidays and 

holidays allowances 56 

1.22. Payables and Other Current 

Liabilities 56 

1.23. Government Grants 56 

1.24. Leases 56 

1.25. Dividends distribution 56 

1.26. Revenue recognition 

and accruals basis 57 

1.27. Contingent Assets 

and Liabilities 57 

48 | 49 

ANNUAL REPORT 

SECIL 2008 

4. Index to the Consolidated 

Financial Statements 

1.28. Subsequent Events 57 

2. Risk Management 57 

2.1. Financial Risk Factors 57 

2.1.1. Currency risk 57 

2.1.2. Interest rate risk 57 

2.1.3. Carbon emission 

allowances risk 57 

2.1.4. Credit risk 57 

2.1.5. Liquidity risk 57 

2.2. Operational risk factors 58 

2.2.1. Construction sector 58 

2.2.2. Product demand - Secil 58 

2.2.3. Environmental legislation 58 

2.2.4. Energy costs 58 

2.2.5 Need for significant 

investments in new acquisitions 

in the future 58 

3. Important accounting 

estimates and Judgements 58 

3.1. Impairment of goodwill 59 

3.2. Corporate income tax 59 

3.3. Actuarial assumptions 59 

3.4. Credit risk 59 

4. Segment Reporting 60 

5. Personnel costs 64 

6. Remuneration of members 

of Statutory bodies 65 

7. Other operating income 65 

8. Other operating costs 66 

9. Group share of associates’ 

profits 66 

10. Net finance costs 67 

11. Income Tax 67 

12. Minority interests 69 

13. Basic earnings per share 70 

14. Appropriation of net profit 

of the prior year 70 

15. Goodwill 71 

16. Other intangible assets 73 

17. Property, plant 

and equipment 74 

18. Investment properties 76 

19. Investments in associates 76 

20. Other non-current assets 78 

21. Inventories 78 

22. Receivable and other 

current assets 78 

23. State and other public 

entities 80 

24. Impairments of current 

and non-current assets 81 

25. Share Capital and 

Treasury Shares 82 

26. Reserves and retained 

earnings 82 

27. Deferred Taxes 82 

28. Pensions and other 

Post-Employment Benefits 84 

29. Provisions 88 

30. Interest- bearing 

liabilities 96 

31. Other non-current 

Liabilities 96 

32. Payables and other 

current liabilities 99 

33. Derivative financial 

instruments 99 

34. Balances and transactions 

with related parties 101 

35. Changes in the 

consolidation scope 102 

36. Environmental related 

expenditure 104 

37. Auditing and statutory 

auditing expenses 105 

38. Average number 

of employees 106 

39. Commitments 106 

40. Other commitments 

of the Group 107 

41. Contingent Assets 108 

42. Translation Rates 108 

43. Companies included in 

Consolidation 109 

44. Companies excluded 

from consolidation 110 

45. Associated companies 110 

46. Mandatory disclosure 

required by Portuguese 

GAAP (POC) 110 

46.1. Consolidated Balance 

Sheet at 31 December 2008 

and 2007 111 

46.2. Consolidated Income 

Statement by Nature 

for years 

ended 31 December 2008 

and 2007 113 

46.3. Functional Consolidated 

Income Statement for years 

ended 31 December 2008 

and 2007 114 

46.4. Mandatory Notes to 

the Consolidated Financial 

Statements for the year 

ended 31 December 2008 114

NOTES ON CONSOLIDATED 

FINANCIAL STATEMENTS 

FOR THE FINANCIAL YEAR ENDED 

31 DECEMBER 2008. 

(Amounts presented in Euro unless otherwise 

stated) 

SECIL GROUP (“Group”) comprises Secil – 

Companhia Geral de Cal e Cimento, S.A. 

(“Secil”) and its subsidiaries. Secil was incorporated 

on 27 June 1918, and has as its 

main object the production and trade of 

cement produced in its Outão plant, Setúbal, 

and has several depots throughout Portugal. 

Head Office: 

Outão, Setubal 

Share Capital: 

Euros 264 600 000 

N.I.P.C.: 

500 243 599 

Secil is the main company of a Group operating 

in Portugal, Tunisia, Spain, Angola, 

France, Lebanon and Cape Verde. Its core 

business covers cement production, 

through its subsidiaries, in its plants in 

Outão, Maceira, Pataias (Portugal), Gabés 

(Tunisia), Lobito (Angola) and Sibline (Lebanon), 

premixed concrete production and 

trade, aggregates, quarrying, through its 

Sub-Holding company Secil Betões e 

Inertes, SGPS, S.A., incorporated on 29 

March 2000. 

These consolidated financial statements 

were approved by the Board of Directors 

on 5 March, 2009. 

The board members, who sign this 

report, declare that, according to their knowledge, 

the information herein contained 

was prepared in accordance with applicable 

Accounting Standards, giving a true view 

of assets and liabilities, financial position 

and results of companies included in the 

Group consolidated financial statements. 

1. SUMMARY OF MAIN ACCOUNTING 

POLICIES 

The main accounting policies applied in the 

preparation of the consolidated financial 

statements are set out below. 

5. Notes of the Consolidated 


1.1. BASIS OF PRESENTATION 

In 2007, the board of directors decided to 

reformulate the presentation of the Group’s 

financial information, anticipating the gradual 

implementation of the New Portuguese 

Accounting System (“SNC” Sistema de 

Normalização Contabilística) aimed at the 

following: (i) Compliance with legal and 

accounting rules and standards of Portugal’s 

official plan of accounts; (ii) Presentation of 

accurate financial information aligned with 

internationally accepted accounting standards 

and disclosure requirements, as required 

by the “SNC”. 

1.2. BASIS OF PREPARATION 

The Group’s consolidated financial statements 

were prepared in accordance with 

generally accepted accounting principles 

in Portugal, adapted with the application 

of certain International Financial Reporting 

Standards, namely, goodwill depreciation, 

actuarial gains and losses on defined 

benefit plans and derivative financial instruments, 

laid out in IFRS 3, IAS 19 and 

IAS 39, respectively. 

In 2005, with effect from January 1, 

2004, the Group ceased the periodic amortisation 

of goodwill. Only impairment losses 

on goodwill are registered in the 

income statement. 

In 2006 the Group changed its accounting 

policy related to the recognition of 

actuarial gains and losses, applying IAS 

19, published by the IASB on December 

16, 2004 and approved by Regulation 

1910/2005 of the European Commission 

on November 8, 2005, which introduced 

an option to recognise actuarial gains and 

losses of defined benefit plans directly 

through equity. 

These consolidated financial statements 

were prepared on a going concern 

basis, from accounting records of companies 

included in the consolidation scope 

herein (Note 43) and based on historical 

cost, except for CO 2 emission allowances 

and financial instruments which are 

measured and reported at fair value (Notes 

16 and 32). 

The preparation of the financial statements 

requires the use of estimates and relevant 

judgements when implementing the Group’s 

accounting policies. Significant estimates 

and assumptions involving a higher degree 

of judgment or complexity are disclosed in 

Note 3. 

1.3. BASIS OF CONSOLIDATION 

1.3.1. SUBSIDIARIES 

Subsidiaries are all entities over which the 

Group has the power to determine their 

financial and operating policies, generally 

considered to exist where the Group holds, 

directly or indirectly more than 50% of voting 

rights. The existence and the effect of potential 

voting rights, whether exercisable or 

convertible are considered when the Group 

assesses its control. Subsidiaries are fully 

consolidated from the date on which control 

is transferred to the Group and are excluded 

from consolidation from the date on 

which control ceases. 

The shareholders’ equity and net profit of 

these companies that are attributable to 

third parties are presented separately in the 

consolidated balance sheet and consolidated 

income statement under the caption 

“Minority interests”. Companies included in 

the consolidated financial statements are 

disclosed in Note 43. 

The acquisition of subsidiaries is accounted 

for on the purchase method. The cost of 

an acquisition is measured by the fair value 

of the identifiable assets, equity instruments 

issued and liabilities incurred or assumed at 

the date of the transaction, plus costs 

directly attributable to the acquisition. 

Identifiable assets and liabilities and contingent 

liabilities acquired in a business combination 

are measured initially at their fair 

value on acquisition date, irrespective of the 

existence of any minority interest. The 

excess of the acquisition cost over the fair 

value of the Group’s share of the identifiable 

net assets acquired is recorded as 

Goodwill, as shown in Note 15. 

When the Group acquires the control of 

an associate, and commences with the

full consolidation of this previously held 

associate, the net assets share of the 

investment previously held is registered in 

retained earnings. 

If the cost of acquisition is less than the 

fair value of the net assets of the acquired 

subsidiary (i.e. negative goodwill), the difference 

is recognised directly in the income 

statement in other operating income. 

Intercompany transactions, balances 

and unrealised gains on transactions between 

group companies are eliminated. 

Unrealised losses are also excluded unless 

the transaction provides evidence of impairment 

on the transfer of the asset. 

Accounting policies of subsidiaries have 

been harmonized, where necessary, to 

ensure consistency with Group policies. 

1.3.2. ASSOCIATES 

Associates are all entities over which the 

Group exercises significant influence but 

not control, generally representing a stake 

between 20% and 50% of voting 

rights. Investments in associates are 

accounted for using the equity method. 

Under the equity method, associates 

are initially recognised at acquisition cost, 

adjusted for the Group’s share of changes 

in associates’ equity (including net profit), 

and off-set by profits or losses for the 

period and by dividends received. 

The difference between the acquisition 

cost and the fair value of the assets 

and liabilities attributable to the associate 

on the date of acquisition, if positive is 

registered and reported as goodwill. 

Negative goodwill is recognised directly 

in the income statement in other operating 

income. 

Investments in associates are subject 

to impairment tests when there is evidence 

that the asset could be impaired. 

Identified impairment losses are booked 

in the income statement. Should impairment 

losses recognised in previous years 

cease to exist, they are reversed, except 

for goodwill related impairment losses. 

When the Group’s share of losses in an 

associate equals or exceeds the Group’s 

investment, recognition of further losses is 

discontinued except to the extent that the 

Group has assumed responsibilities or made 

payments in respect of the associate. 

Unrealized gains on transactions with 

associates are eliminated to the extent of the 

Group’s interest in such associates. 

Unrealized losses are also eliminated, unless 

the transaction provides evidence of impairment 

on the transfer of the asset. 

Accounting policies of associates have 

been harmonized, whenever necessary, to 

ensure consistency with Group’s policies. 

Associates are disclosed in Note 19. 

1.3.3. JOINT VENTURES 

A Joint Venture, is an entity in which the 

Group holds an interest on a long-term basis 

and which is jointly controlled by the Group 

and one or more entity. 

Joint Ventures are accounted for on a proportionate 

consolidation basis. The Group 

combines its share in the individual income 

and expenses, assets and liabilities and 

cash flows of joint ventures on a line-byline 

basis with similar items in the Group’s 

consolidated financial statements. 

1.4. SEGMENT REPORTING 

A business segment is a group of assets 

and operations of the Group which is subject 

to risks and returns different to that of 

other segments. 

Three business segments were identified: 

Cement, Concrete and Aggregates. 

A geographical segment is an individual 

area committed to supplying products and 

services in a particular economic environment 

which is subject to different risks and 

benefits from that of segments that operate 

in other economic environments. The 

geographical segment is defined considering 

the country of destination of goods and 

services sold by the Group. 

Segment reporting accounting policies 

are used consistently in the Group. All inter 

50 | 51 

ANNUAL REPORT 

SECIL 2008 

segmental sales and services rendered are 

made at market prices and eliminated in 

the consolidation process. 

The segment reporting is presented in 

Note 4. 

1.5. FOREIGN CURRENCY 

TRANSLATION 

1.5.1. FUNCTIONAL AND 

PRESENTATION CURRENCY 

Items included in the financial statements of 

each of the Group’s entities are measured 

using the currency of the primary economic 

environment in which the entity operates 

(“the functional currency”). The consolidated 

financial statements are presented 

in euros, the presentation and the functional 

currency of the Group. 

1.5.2. BALANCES AND 

TRANSACTIONS EXPRESSED IN 

FOREIGN CURRENCIES 

All Group assets and liabilities denominated 

in foreign currencies are translated to euros 

at the official exchange rate on the balance 

sheet date. 

Foreign exchange gains and losses 

resulting from the settlement of transactions 

and from the translation at year-end exchange 

rates of monetary assets and liabilities 

denominated in foreign currencies are 

recognised in the consolidated income statement. 

1.5.3. GROUP COMPANIES 

The income statement and financial position 

of Group entities that have different functional 

currencies are translated to the group’s 

presentation currency as follows: 

(i) Assets and liabilities are translated at the 

closing exchange rate at the balance sheet 

date; (ii) Income and expenses are translated 

at the average exchange rate for the 

reporting year (unless the average exchange 

rate is not a reasonable approximation of 

the cumulative effect of rates prevailing on 

the dates of the transaction. In this case 

income and expenses items are translated 

at the exchange rates prevailing at the transaction 

dates); and (iii) All resulting translation 

differences are recognised in equity,

and reported separately under the caption 

“translation reserves”. 

1.6. INTANGIBLE ASSETS 

CO 2 emission allowances assigned to the 

Group within the framework of the National 

Plan for the assignment of CO 2 emission 

licenses on a gratuitous basis are recorded 

under the captions “Intangible assets” and 

“Deferred Income – Subsidies” at the market 

value prevailing at the date of delivery. 

The Group records an operating cost 

and an equivalent liability to cover its’ greenhouse 

gas emissions during the period 

and an operating income arising from the 

recognition of the equivalent quota of the 

allowances assigned to the Group. 

Gains or losses arising on the sale of 

emission allowances are calculated as the 

difference between the sale proceeds and 

the purchase price, deducted for the corresponding 

value assigned,fair value at the 

date of the assignment, which are recognized 

and reported as other operating income 

or other operating costs, respectively. 

At year-end, the allowances held, and 

the equivalent liabilities and operating income 

to be recognized, liabilities incurred by 

the emissions are expressed in accordance 

with their fair value at balance sheet date. 

1.7. GOODWILL 

Goodwill represents the excess of the cost 

of acquisition over the fair value of the net 

identifiable assets, liabilities and contingent 

liabilities in a business combination and 

associates, at the date of acquisition. 

Goodwill is not amortized and is tested 

annually for impairment. Goodwill impairment 

losses are not reversed.Gains or losses 

on the disposal of an entity include the 

carrying amount of goodwil related to that 

entity. 

Goodwill carried by foreign currency subsidiaries, 

is considered an asset of those 

entities and translated at the rate of exchange 

ruling at the balance sheet date. 



1.8. PROPERTY, PLANT AND 

EQUIPMENT 

Property, plant and equipment are stated 

at cost, or revalued amount in accordance 

with accounting principles generally accepted 

in Portugal, less acumulated depreciation 

and impairment losses. 

The tangible assets cost of the subsidiaries 

CMP, Société des Ciments de Gabés 

(SCG), Jobrita, Sicobetão and Cimentos 

Costa Verde were based on independent 

valuations performed at acquisition date. 

Acquisition cost includes all expenditures 

directly attributable to the acquisition of 

the assets. 

Costs incurred after purchase or acquisition 

are included in the carrying value of the 

respective asset or recognised as a separate 

asset, as appropriate, only wheere future 

economic benefits are probable and the 

respective cost can be reliably measured. All 

repair and maintenance costs are recognised, 

when occurred, in the income statement 

in the year. 

Depreciation is calculated on acquisition 

cost, using the straight-line method from 

the date that the asset starts it operation, at 

rates that best reflect its estimated useful life. 

For some categories of assets the Group is 

uses the reducing balance depreciation 

method. 

Assets residual values and useful lives 

are reviewed and adjusted, if appropriate, at 

each balance sheet date. If the asset’s carrying 

amount exceeds its net realizable value, 

the difference between its carrying and net 

realizable value is booked as an impairment 

loss (Note 1.10). 

Gains or losses arising on write-downs 

or disposals are determined as the difference 

between the proceeds on disposal 

and the asset’s carrying amount, and are 

recognised in the income statement as other 

operating income or costs. 

1.9. INVESTMENT PROPERTIES 

Investment properties are measured at revalued 

acquisition cost less depreciation and 

impairment losses. 

1.10. IMPAIRMENT OF NON-CURRENT 

ASSETS 

Non-current assets with no definitive useful 

life are not subject to amortisation but are 

annually tested for impairment. Assets that 

are subject to amortisation are reviewed for 

impairment whenever events or changes in 

circumstances indicate that the carrying 

amount may not be recoverable. 

An impairment loss is recognised as the 

excess of an asset’s carrying amount over 

its net realizable value. Net realizable value 

is the higher of an asset’s net selling price 

and its value in use. 

The net selling price is the amount obtained 

in a sale transaction of the asset between 

knowledgeable and independent parties, 

deducted for the costs directly attributable 

to the sale. 

For impairment testing purposes, assets 

are grouped at the lowest level for which 

cash flows can be separately identified (cash 

generating units), in the event it is not possible 

on an individual asset basis. 

Impairment losses are reversed when 

there is evidence that these impairment losses 

no longer exist or have reduced. (Except 

goodwill impairment losses – see Note 1.6). 

This analysis is performed whenever there 

is evidence that previously recognized 

impairment losses previously have reversed. 

The reversal of impairment losses is 

recognised in the income statement as other 

operating income, unless the asset has been 

subject to revaluation, in which case the 

reversal represents an increase in the revaluation 

amount. However, an impairment 

loss is only reversed up to the amount that 

would have been recognised (net of amortisation 

or depreciation) had the impairment 

not been recognised. 

1.11. FINANCIAL INVESTMENTS 

The Group classifies its investments into 

the following categories: financial assets 

at fair value through income statement, 

loans and receivables, held-to-maturity 

investments and available-for-sale financial 

assets. The classification depends on 

the purpose for which the investments 

were acquired.

Management determines the classification 

of its investments on initial recognition and 

evaluates this classification at each reporting 

date. 

All acquisitions and disposals are recognised 

at the date of the purchase and sale 

agreements, regardless of the date of settlement. 

Investments are initially recognised at 

acquisition cost. Thereafter, measurement 

depends on the classification of the investment, 

as follows: 

Loans and receivables 

Loans granted and receivables are nonderivative 

financial assets with fixed or 

identifiable payments not quoted on an 

active market. They arise when the Group 

provides money, goods or services directly 

to a debtor with no intention of trading the 

receivable. 

They are included in current assets, 

except for maturity terms greater than 12 

months after the balance sheet date, in 

which case they are classified as noncurrent 

assets. 

Loans granted and receivables are reported 

as part of receivables and other current 

assets. 

Financial assets at fair value through 

income statement 

A financial asset is classified as such if 

acquired mainly for the purpose of selling in 

the short term or if so designated by management. 

Assets in this category are classified 

as current if they either are held for 

trading or are expected to be sold within 

12 months of the balance sheet date. These 

assets are measured at fair value through the 

income statement. 

Held-to-maturity investments 

Held-to-maturity investments are non-derivative 

financial assets, with fixed or identifiable 

payments and fixed maturity terms 

that management has the intention and abi- 

52 | 53 

ANNUAL REPORT 

SECIL 2008 

lity to hold to maturity. Investments in this 

category are recorded at amortized cost 

using the effective interest rate method. 

1.12. DERIVATIVE FINANCIAL 

INSTRUMENTS 

The Group uses derivative financial instruments 

to manage its financial risks. 

Whenever the evolution in interest or 

exchange rates requires, the Group hedges 

adverse risks through derivative financial 

instruments, such as interest rate swaps 

(IRS), caps and floors, forwards, etc. 

The Group has also contacted derivative 

instruments to hedge its greenhouse 

emission allowances held. 

In selecting derivative financial instruments, 

the Group focus on the economic 

efficiency underlying such instruments and, 

the instruments are recognised in the balance 

sheet at fair value. 

To the extent that the derivative financial 

instruments are effective hedges, changes 

in the fair value are recorded in equity 

and subsequently recognised in the caption 

“net financial income - Commissions 

and losses in financial instruments”. 

The costs associated with the hedging of 

the underlying liabilities are matched with the 

inherent rate of the hedge instrument. Gains 

or losses arising from the earlier termination 

of these instruments are recognised 

immediately through the income statement. 

Although the derivative financial instruments 

contracted by the Group represent 

effective economic hedging instruments, 

not all of them qualify as hedging instruments 

in accordance with IAS 39. Derivative 

financial Instruments which do not qualify as 

hedging instruments are stated at fair value 

and changes in fair value are recognised 

through the income statement as commissions 

and losses in financial instruments 

(Note 10). 

Where possible, the fair value of derivative 

financial instruments is measured based 

on listed instruments. If no market prices

are available, the fair value of derivative 

financial instruments are estimated based on 

the discounted cash-flow method and 

option valuation models, in accordance with 

prevailing market assumptions. The fair 

value of the derivative financial instruments 

is reported mainly under receivables and 

other current assets and payables and other 

current liabilities. 

1.13. INCOME TAX 

Income tax includes current and deferred 

taxation. Current income tax is calculated 

based on net profit, adjusted in accordance 

with tax law prevailing at the balance 

sheet date. 

Deferred tax is recognised, using the liability 

method, on temporary differences arising 

between the tax base of assets and 

liabilities and their carrying accounting 

amounts in the consolidated financial statements. 

Deferred tax is determined using tax 

rates expected to be prevailing when the 

related timing differences revert back. 

Deferred tax assets 

are recognised only to 

the extent that it is probable 

that future taxable 

profit will be avaiable 

against which temporary 

differences can 

be utilised. 

Deferred tax is recognised 

in the income statement, 

except to the 

extent that it relates to 

items recognised directly 

in equity. In this case, the 

tax is also recognised in 

equity. 

1.14. INVENTORIES 

Inventories are measured 

as follows: 

i) Goods held for resale 

and raw 

materials 

Goods held for resale 

and raw materials are 



stated at the lower of acquisition cost and 

net realizable value. Cost includes ancillary 

acquisition costs and is determined using 

the weighted average cost basis. 

ii) Finished and intermediate products 

and work in progress 

Finished and intermediate products and 

work in progress are valued at the lower of 

production cost (which includes the cost of 

raw materials, labour and related production 

overheads, based on normal operating 

capacity levels) and the net realizable 

value.Net realisable value is the estimated 

selling price in the ordinary course of business, 

less applicable completion and selling 

costs. 

1.15. RECEIVABLES AND OTHER 

CURRENT ASSETS 

Receivables and other current assets are 

stated at gross value less impairment losses 

necessary to adjust them to their expected 

net realizable value (Note 22). 

Impairment losses are recorded when 

there is clear evidence that the group will not 

be able to collect all amounts due according 

to the original terms of the receivables. 

1.16. CASH AND EQUIVALENTS 

Cash and cash equivalents includes cash in 

hand, bank deposits, and other short-term 

investments with original maturities of three 

months or less, which can be turned into 

liquid assets without a significant risk of 

value fluctuation. The consolidated cash 

flow statement includes under this caption 

bank overdrafts, which are shown in the 

consolidated balance sheet, under Interestbearing 

current liabilities. 

1.17. SHARE 

CAPITAL AND 

TREASURY SHARES 

Ordinary shares are classified under equity 

(Note 25). 

Costs directly attributed to the issue of 

new shares or other equity instruments are 

shown in equity as a deduction, net of tax, 

of the issue proceeds. 

When the company buys back its own 

shares (treasury shares), the consideration 

paid, including any 

directly attributable 

incremental 

costs (net of income 

taxes) is deducted 

from equity 

attributable to 

the company’s equity 

holders 

until such time as 

the shares are 

cancelled or reissued. 

Where such 

shares are subsequently 

reissued, 

any consideration 

received, net of 

any directly attributableincremental 

transaction 

costs and related 

income tax thereon, 

is included in 

equity attributable 

to the company’s 

equity holders.

1.18. INTEREST-BEARING LIABILITIES 

Interest-bearing liabilities are recognised 

initially at fair value, net of transaction costs 

incurred. Interest-bearing liabilities are subsequently 

stated at amortized cost; any difference 

between the proceeds (net of 

transaction costs) and the redemption value 

is recognised in the income statement over 

the period of the debt, using the effective 

interest rate method. 

Interest-bearing liabilities are classified 

as current liabilities, unless the Group has an 

unconditional right to defer settlement of 

the liability for at least 12 months after the 

balance sheet date (Note 30). 

1.19. BORROWING COSTS 

Borrowing costs are generally recognised as 

financial costs in accordance with the 

accrual principle (Note 10). 

Borrowing costs directly related to the 

acquisition, construction, or manufacture 

of fixed assets, are capitalized when the 

related period is longer than 12 months. 

Capitalization of borrowing costs commences 

on construction or development of 

the asset and terminates on commissioning 

or when the respective project is suspended. 

Any financial income earned on loans 

that are directly associated with a specific 

investment is deducted from capitalized 

financial costs. 

1.20. PROVISIONS 

Provisions are recognised whenever the 

Group has a legal or actual responsibility 

as a result of past events and it is probable 

that an outflow of resources will be required 

to settle the obligation and the amount has 

been reliably estimated. 

Provisions for future operating losses 

are not recognised. Provisions are reviewed 

on balance sheet date and are adjusted 

to reflect the best estimate at that date 

(Note 29). 

The Group incurs expenditure and assumes 

liabilities of an environmental nature. 

Accordingly, expenditures related to equip- 

ment and operational procedures that ensure 

compliance with applicable legislation 

and regulations (as well as the reduction of 

environmental impacts to levels that do not 

exceed those representing a viable application 

of the best available technologies, those 

related to minimizing energy consumption, 

atmosphere emissions, production 

of waste and noise, to those established 

for the execution of environmental 

rehabilitation plans) are capitalized when 

they are intended to serve the Group’s business 

in a sustainable manner, as well as 

those associated with future economic 

benefits and which serve to extend life 

expectancy, increase capacity or improve 

the safety or efficiency of other assets held 

by the Group (Notes 36). 

Lands used in quarrying activities must 

be restored to their original environmental 

state, although the Group’s practice is to 

restore quarries freed up on a continual and 

progressive basis, recognizing the related 

expendures in the income statement in the 

period incurred. 

The Group engages specialized independent 

entities to evaluate liabilities and 

the estimated period of exploration related 

to quarries that can only be restored when 

exploration ceases, ,recognised for this purpose 

a provision under the caption 

“Provisions” (Note 29). 

1.21. EMPLOYEE BENEFITS 

1.21.1. DEFINED BENEFIT PLANS 

Certain Group companies operate defined 

benefit pension plans, to cover complementary 

pension responsibilities to its employees 

covering retirement, disability, early 

retirement and surviving spouse pensions. 

As mentioned in Note 28, the plans are 

generally funded through payments to autonomous 

pension funds. 

In accordance with IAS 19, the liability 

recognised in the balance sheet in respect 

of defined benefit pension plans is the present 

value of the defined benefit obligation 

at the balance sheet date less the fair value 

of plan assets, including adjustments for 

unrecognised past-service costs. 

54 | 55 

ANNUAL REPORT 

SECIL 2008 

The defined benefit obligation is calculated 

every semester by independent actuaries 

using the projected unit credit method. 

The present value of the defined benefit 

obligation is determined by discounting the 

estimated future cash outflows using interest 

rates of high quality corporate bonds 

that are denominated in the currency in 

which the benefits will be paid, and that 

have terms to maturity approximating those 

of the related pension liability. 

Past service costs resulting from the 

implementation of a new defined benefit 

plan, or increases in benefits attributed 

under an existent defined benefit plan are 

recognised immediately in situations where 

the benefits are to be paid or are vested. 

The liability is disclosed in the balance 

sheet, less the funds’ market value under the 

caption “Pensions and other post-employment 

benefits” in non-current liabilities. 

Actuarial gains and losses arising from 

the differences between the assumptions 

used and those which effectively occurred 

(as well as changes made to those actuarial 

assumptions and the difference between 

the expected return of funds and 

their actual yield) are recognised directly in 

equity (Note 28). 

Gains and losses generated by a curtailment 

or settlement of a defined benefit 

pension plan are recognised in the income 

statement. 

A curtailment occurs when there is a 

material reduction in the number of employees 

or when the plan is modified in a way 

that benefits are materially decreased. 

1.21.2. OTHER POST-EMPLOYMENT 

BENEFITS 

Additionally, the Group assume the following 

post-employment benefits: 

Benefits on retirement and death 

CMP – Cimentos Maceira e Pataias, S.A., a 

Group company assumed the commitment 

to pay its employees (i) a termination bene-

fit or disability benefit, representing three 

months of the last salary and a death in service 

benefit of one month of the last salary 

received. 

The subsidiaries Secil Angola, S.A.R.L. 

and Secil Lobito, S.A. (Angola) pay their 

employees on retirement date, in accordance 

with the General Labour Law no. 2/2000, 

a retirement subsidy which represents a 

quarter of the last salary multiplied by the 

number of years in the company’s service. 

The subsidiary Societé des Ciments de 

Gabes (Tunisia) have an obligation to its 

employees (Collective Employment Agreement, 

article 52) to pay a retirement subsidy 

which corresponds to: (i) 2 months of the 

last salary for an employee with less than 30 

years in the company’s service and (ii) 3 

months of the last salary, if the employee has 

30 or more years service with the company. 

Long-term service awards 

Secil – Companhia Geral de Cal e Cimento, 

S.A. and the subsidiary CMP – Cimentos 

Maceira e Pataias, S.A. have commitments 

to its employees who achieve in the case of 

Secil 25, 35 and 40 years of service and at 

CMP’s 20 and 35 years of company’s service, 

calculated based on a month’s salary, 

limited to three salaries. 

Healthcare benefits 

Secil – Companhia Geral de Cal e Cimento, 

S.A. and CMP – Cimentos Maceira e 

Pataias, S.A., Cimentos Madeira, Promadeira 

and Brimade provide supplementary 

healthcare benefit to their employees, 

employees’ family members, retirees 

and widows. Under this scheme, the cost 

of certain healthcare schemes is shared: (i), 

at Secil, through healthcare insurance and 

(ii), at CMP, through “Cimentos – 

Federação das Caixas de Previdência”, for 

covered employees, subject to the preapproval 

of the company’s medical services, 

for the remaining employees and (iii) 

for Cimentos Madeira and Brimade’s retired 

employees depending on the approval 

of healthcare expenses. 

Bonuses 

Some group companies state in their 



Articles of Association, the obligation to pay 

a net profit share to its employees. Therefore, 

the Group recognises these obligations 

as a liability and cost in the income 

statement of the year when there is a contractual 

or actual obligation based on past 

practice. 

1.21.3. HOLIDAYS AND HOLIDAYS 

ALLOWANCES 

In accordance with prevailing labour law, 

workers are entitled to 25 days of holiday 

each year, as well as one month of a holiday 

allowance. The employee is entitled to this 

right in the year preceding the payment. 

Based on the Management Performance 

System, employees are entitled to a compensation 

benefit defined in the annual budget. 

The employee is entitled to this right in 

the year preceding the payment. 

The liabilities are thus recorded in the 

period during which employees acquire these 

rights, irrespective of the date of payment, 

and these liabilities are reported under 

the caption “Payables and other current liabilities”. 

1.22. PAYABLES AND OTHER 

CURRENT LIABILITIES 

The amounts of Payables and other current 

liabilities are stated at their nominal value. 

(Note 32) 

1.23. GOVERNMENT GRANTS 

Government grants are recognised at their 

fair value where there is a reasonable assurance 

that the grant will be received and 

the group will comply with all required conditions. 

Government grants related to costs are 

deferred and recognised in the income statement 

over the period that matches the 

costs with the compensating grants. 

Government grants that the Group receives 

to compensate its capital expenditures 

are reported under the caption “Payables 

and other current liabilities” and are recognised 

in the income statement under the 

caption “Other operating income” during 

the estimated useful life of the granted asset. 

1.24. LEASES 

Property, plant and equipment acquired 

under financial leases, as well as the respective 

liabilities are recorded using the 

financial method. 

The asset is recorded under the caption 

“Property, plant and equipment”, the 

respective liability is recorded under the 

caption “Interest-bearing liabilities”, and 

the interest cost of the financial lease and 

the asset’s depreciation, calculated as 

described in Note 1.8, are recognised as 

costs of the respective period. 

Leases, in which a significant portion 

of the risks and rewards of ownership are 

retained by the lessor and the Group is the 

lessee, are classified as operating leases. 

Payments made under operating leases, 

net of any incentives received from the 

lesser, are charged to the income statement 

on a straight-line basis over the 

period of the lease. 

The Group recognises an operating or 

financial lease when it enters an arrangement, 

comprising a transaction or a series 

of related transactions, which may not 

assume the legal form of a lease, however 

transmits the right to use the asset in 

return for a payment or series of payments. 

1.25. DIVIDENDS DISTRIBUTION 

Dividend distribution to the company’s 

shareholders is recognised as a liability 

in the group’s financial statements in the 

period in which the dividends are approved 

by the company’s shareholders. 

1.26. REVENUE RECOGNITION 

AND ACCRUALS BASIS 

Income from sales is recognised in the 

consolidated income statement when the 

risks and benefits inherent to the ownership 

of the respective assets are transferred 

to the purchaser and the income can be 

reasonably measured. 

Sales are recognised net of taxes, discounts 

and other costs inherent to completion, 

at fair value of the consideration 

received or receivable for the sale of goods

and services in the ordinary course of the 

group’s activities. 

Income from services rendered is reognised 

in the consolidated income statement 

under the percentage-of-completion 

method. 

Dividend income is recognised when 

the right to receive payment is established. 

Interest income is recognised on a 

time-proportion basis using the effective 

interest method. 

Group companies recognise their 

costs and income based on the accrual 

principle, and then costs and income are 

recognised as generated, irrespective of 

when they are paid or received. 

The differences between amounts 

received and paid and the respective 

costs and income are reported under the 

captions “Receivables and other current 

assets” and “Payables and other current 

liabilities” (Notes 22 and 32, respectively). 

1.27. CONTINGENT ASSETS AND 

LIABILITIES 

Contingent liabilities for which it is possible 

an outflow of resources embodying 

economic benefits will be required 

to settle the obligation, are not recognised 

in the consolidated financial statements 

and are disclosed in the notes 

on consolidated financial statements 

unless the possibility of an outflow of 

resources embodying economic benefits 

is remote, in which case they are 

not disclosed. 

Provisions against liabilities that 

satisfy the criteria foreseen are presented 

in Note 1.18. 

Contingent assets are not recognised 

in the consolidated financial statements, 

but are disclosed in the notes on consolidated 

financial statements when a future 

economic benefit is probable. 

1.28. SUBSEQUENT EVENTS 

Events subsequent to the balance sheet 

date that provide additional information 

of conditions existing at balance 

sheet date are adjusted in the consolidated 

financial statements. 

Events subsequent to balance sheet 

date that provide information on conditions 

that arose after the balance sheet 

date are disclosed in the notes on the 

consolidated financial statement, if 

material. 

2. RISK MANAGEMENT 

2.1. FINANCIAL RISK FACTORS 

The Secil Group has a risk-management 

programme which focuses its analysis 

on the financial markets with a view to 

mitigate the potential adverse effects on 

the Secil Group’s financial performance. 

Risk management is undertaken by 

Secil’s and its main subsidiaries’ Finance 

Department in accordance with the policies 

approved by the Board of Directors. 

2.1.1. CURRENCY RISK 

Variations in the euro’s exchange rate 

against other currencies can affect the 

Group’s revenue in a number of ways. 

Currency risk arises primarily from 

purchases of pet coke and sea freight, 

both of which are paid for in USD. The 

Secil Group has optimised intra-group 

cash flows in foreign currency with the 

aim of ensuring natural hedging. 

In the case of cash flows which are 

not offset naturally, the attendant risk 

has been analysed and hedged by 

means of currency options contracts 

which stipulate the maximum counter 

value to be settled and which permit the 

group to benefit partially from favourable 

movements in exchange rates. 

The Secil Group has assets located in 

Tunisia, Angola and Lebanon, therefore 

any change in these countries’ exchange 

rates could have an impact on Secil’s 

balance sheet. 

56 | 57 

ANNUAL REPORT 

SECIL 2008 

2.1.2. INTEREST RATE RISK 

Towards the end of 2005, the Secil Group 

opted to partially hedge interest rate risk 

by means of derivative instruments which 

fixed a maximum figure for the finance 

charges relating to long-term debt with 

phased repayment terms. The remaining 

borrowings were maintained at variable 

interest rate. 

2.1.3. CARBON EMISSION 

ALLOWANCES RISK 

The Group promotes an active management 

of its portfolio of emission allowances 

which were attributed in phase 2 of the EU- 

ETS. Due to the growing usage of alternative 

fuels, the Group has and predicts to 

maintain excess emission allowances, 

which have continuously been sold in the 

market, thus eliminating price risk. 

2.1.4. CREDIT RISK 

The deterioration in global economic conditions 

or adverse situations which only 

affect economies at the local level could 

give rise to situations in which customers 

are unable to meet their commitments 

stemming from the sales of products. Credit 

insurance has been one of the instruments 

adopted by the Secil Group to mitigate the 

negative impact of this type of risk. 

2.1.5. LIQUIDITY RISK 

The Group manages liquidity risk in two 

ways: ensuring that its interest-bearing debt 

has a large medium and long-term component 

with maturities in harmony with the 

charaacteristics of the industry in which it 

operates, and having access to credit facilities 

available at any moment. 

2.2. OPERATIONAL RISK 

FACTORS 

2.2.1. CONSTRUCTION SECTOR 

Secil’s turnover is dependent on the level 

of activity in the construction sector in 

each one of the geographic markets in 

which it operates. The construction sector 

tends to be cyclical, in particular in mature 

economies, and depends on the level of 

residential and commercial construction, 

as well as on the level of investments in 

infrastructures.



The construction sector is sensitive to factors 

such as interest rates; therefore a downturn 

in economic activity in any specific 

economy may lead to a recession in the 

building industry. 

Despite the company considering that 

its geographical diversification is the best 

way to stabilise earnings, its business, financial 

situation and operating profit can be 

negatively affected by a downswing in the 

construction sector in any of the significant 

markets in which it operates. 

2.2.2. PRODUCT DEMAND - SECIL 

In the mature markets, the demand for 

cement and other building materials tends 

to be highly constant throughout the year. A 

decline in demand is only observed in 

December. The demand for Secil products 

is in general aligned with this behavioural 

pattern. 

2.2.3. ENVIRONMENTAL 

LEGISLATION 

In recent years, community and national 

legislation has been more demanding with 

regard to waste control. 

The Secil Group complies with legislation 

currently in force, having for this reason 

made very substantial investments in the 

past few years. Although no significant 

changes to current legislation are envisaged 

in the near future, the possibility exists 

that Secil may need to realise additional 

investments in this area, in such a manner 

as to comply with any new limits that may 

eventually be approved. 

2.2.4. ENERGY COSTS 

A significant portion of the Secil Group’s 

costs is dependent on energy costs. 

Energy is a cost factor with a substantial 

weight on the business carried on by Secil 

and its affiliates. 

The company protects itself to a certain 

degree against the risk of a rise in energy 

prices by virtue of the fact that some of its 

factories are able to use alternative fuels 

and can resort to long-term electric-power 

supply contracts for certain of their energy 

requirements. 

Notwithstanding those measures, significant 

fluctuations in electricity and fuel costs 

can have a negative impact on the Secil 

Group’s business, financial situation and 

operating profit. 

2.2.5. NEED FOR SIGNIFICANT 

INVESTMENTS IN NEW ACQUISITIONS 

IN THE FUTURE 

The Secil Group has interests in sectors 

where it has been witnessing consolidation 

movements and where growth opportunities 

may arise, both organically and via acquisitions. 

3. IMPORTANT ACCOUNTING 

ESTIMATES AND JUDGEMENTS 

The preparation of consolidated financial 

statements requires that Group management 

make judgments and estimates related 

to revenues, costs, assets, liabilities and 

disclosures at balance sheet date. 

These estimates are influenced by the 

judgments of Group management, based 

on: (i) the best information and knowledge 

of present events and in certain cases on the 

reports of independent experts and (ii) the 

actions which the company considers it 

may have to take in the future. However, on 

the date on which the operations are realised, 

the outcome could be materially different 

from those estimates. 

The estimates and assumptions which 

present a significant risk of a material adjustment 

to the book value of assets and liabilities 

in future periods are presented below: 

3.1. IMPAIRMENT OF GOODWILL 

The Group carries out an annual review of 

goodwill in order to ascertain whether goodwill 

has been impaired, in accordance with 

the accounting policy described in Note 1.7. 

The recoverable amounts of the cashflow 

generating units are determined based 

on the basis of the calculation of their valuein-use. 

These calculations require the use of 

estimates. 

3.2. CORPORATE INCOME TAX 

The Group recognises liabilities for additional 

tax assessments resulting from inspec-

tions undertaken by the tax authorities. 

When the final outcome of such situations 

is different from those initially recorded, 

the differences will impact income tax 

and deferred taxes in the periods in which 

such differences are identified. 

3.3. ACTUARIAL ASSUMPTIONS 

Liabilities relating to defined-benefit plans 

are calculated based on certain actuarial 

assumptions. Changes to those assumptions 

could have a material impact on those 

liabilities. 

3.4. CREDIT RISK 

As stated previously, the Group manages 

credit risks associated with its portfolio of 

accounts receivable by means of strict risk 

analysis at the time of granting credit terms 

to new customers, as well as a regular 

review of accounts receivable (Note 24). 

Owing to the intrinsic nature of its 

customers, credit ratings are not available 

for a major part of its receivables 

portfolio which permits their categorisation 

and analysis as a homogenous 

population. Accordingly, data relating to 

cus customers financial 

performance are gathered 

through regular c 

contacts, as well as 

through contacts with 

other entities involved 

in the commercial relationship 

(for example, 

selling agents). 

Secil and its subsidiaries 

also contract 

with a number of credit-insurancecompanies 

the inclusion of 

the majority of the 

balances in its client 

portfolios through insurance 

policies, which 

limit their exposure to 

the excess payable in 

the event of a claim, 

varying depending on 

the customer’s geographic 

location. 

58 | 59 

ANNUAL REPORT 

SECIL 2008

SEGMENTAL REPORT 



4. SEGMENT REPORTING 

Segmental information is presented for identified business segments, namely Cement, Concrete and Aggregates. Revenues, assets 

and liabilities per segment correspond to those directly attributed to each segment, as well as to those that can be reasonably attributed 

thereto. Financial information by business segment for the year ended 31 December 2008 is shown as follows: 

Cement 

Amounts in Euro Portugal Angola Lebanon Tunisia 

REVENUES 

External Revenues 252 468 458 45 585 708 54 501 010 57 422 992 

Inter-segment revenues 63 550 484 - 2 494 897 2 118 739 

Total Revenue 316 018 942 45 585 708 56 995 907 59 541 731 

EBITDA 99 962 412 6 453 881 18 169 791 13 900 506 

Depreciation and amortisation (costs / reversals) (31 204 236) (2 023 192) (4 501 805) (8 539 223) 

Investment Subsidies 893 556 - - 427 804 

Gains on disposal of non-current assets 155 548 - 66 140 1 499 

Impairment of assets - - - - 

EBIT 69 807 280 4 430 689 13 734 126 5 790 586 

Group share associates’ profits 1 893 - - - 

Net financial cost (23 934 168) 1 057 161 (1 579 649) (769 165) 

Profit before tax 45 875 005 5 487 850 12 154 477 5 021 421 

Income Tax expense (9 389 758) 105 653 (2 896 596) 960 225 

Group profit for the financial year 36 485 247 5 593 503 9 257 881 5 981 646 

Retained earnings for the year 

Attributable to Secil’s equity holders 35 672 053 4 134 273 4 690 968 5 904 979 

Attributable to minority interests 813 194 1 459 230 4 566 913 76 667 

OTHER INFORMATION 

Goodwill 50 647 609 1 708 671 11 293 680 34 102 846 

Investment in associates 387 642 - - 2 745 

Other segment assets 268 548 917 61 520 409 101 037 431 123 959 352 

Total consolidated assets 319 584 168 63 229 080 112 331 111 158 064 943 

Segment liabilities 209 289 728 12 578 302 33 110 533 59 348 186 

Fixed assets expenditures (Note 17) 22 167 137 4 756 959 2 762 604 3 135 227

60 | 61 

ANNUAL REPORT 

SECIL 2008 

Concrete Aggregates 

Portugal Lebanon Tunisia Portugal 

Others non 

allocated Eliminations Consolidated 

120 136 845 6 611 022 6 022 506 14 570 154 41 193 192 - 598 511 887 

438 549 - - 8 847 077 30 163 767 (107 613 513) - 

120 575 394 6 611 022 6 022 506 23 417 231 71 356 959 (107 613 513) 598 511 887 

9 416 706 454 729 779 036 4 651 041 3 561 406 - 157 349 508 

(3 045 792) (213 688) (394 152) (2 953 133) (3 918 228) - (56 793 449) 

12 712 - 15 569 4 067 22 402 - 1 376 110 

58 386 8 159 3 331 78 893 219 385 - 591 341 

- - - - (3 078 879) - (3 078 879) 

6 442 012 249 200 403 784 1 780 868 (3 193 914) - 99 444 631 

- - - 7 372 315 570 - 324 835 

(1 493 787) 4 280 (62 197) (481 727) 18 612 089 - (8 647 163) 

4 948 225 253 480 341 587 1 306 513 15 733 745 - 91 122 303 

(1 240 930) (39 265) (65 212) (208 569) (8 015 807) - (20 790 259) 

3 707 295 214 215 276 375 1 097 944 7 717 938 - 70 332 044 

3 608 466 108 542 282 888 938 458 7 436 163 - 62 776 790 

98 829 105 673 (6 513) 159 486 281 775 - 7 555 254 

15 087 990 - 2 016 490 - 9 295 070 - 124 152 356 

- - - - 711 761 - 1 102 148 

56 142 143 5 137 713 2 232 914 32 901 050 83 654 135 - 735 134 064 

71 230 133 5 137 713 4 249 404 32 901 050 93 660 966 - 860 388 568 

13 979 686 1 141 954 1 748 267 7 359 085 71 206 271 - 409 762 012 

1 502 544 371 230 454 143 2 024 313 3 440 596 - 40 614 753




Financial information by business segment for the year ended 31 December 2007 is analysed as follows: 

Cement 

Amounts in Euro Portugal Angola Lebanon Tunisia 

REVENUES 

External revenues 242 484 601 31 953 245 46 104 106 49 188 545 

Inter-segment revenues 50 607 488 - 2 227 117 1 873 725 

Total Revenue 293 092 089 31 953 245 48 331 223 51 062 270 

EBITDA 91 521 704 1 883 344 18 079 974 16 312 940 

Depreciation and amortisation costs/reversals) (34 235 803) (1 676 762) (5 636 201) (8 517 254) 

Investment Subsidies 1 246 749 - - 583 768 

Gains on disposal of non-current assents 72 572 - 3 271 - 

Impairment of assets (542 140) - - - 

EBIT 58 063 082 206 582 12 447 044 8 379 454 

Group share 

associates’ profits 462 168 - - - 

Net financial cost (20 400 057) 79 231 (3 122 597) (1 049 606) 

Profit before tax 38 125 193 285 813 9 324 447 7 329 848 

Income Tax expense (11 581 722) (491 848) (1 480 144) (2 021 808) 

Group profit for the financial year 26 543 471 (206 035) 7 844 303 5 308 040 

Retained eamings for the year 

Attributable to Secil´s equity holders 25 849 460 (450 231) 3 974 785 5 240 007 

Attributable to minority interests 694 011 244 196 3 869 518 68 033 

OTHER INFORMATION 

Goodwill 50 647 610 1 615 352 10 874 232 34 500 784 

Investment in associates 748 - - 2 793 

Other segment assets 226 750 282 50 475 548 101 644 029 157 964 909 

Total consolidated assets 277 398 640 52 090 900 112 518 261 192 468 486 

Segment liabilities 232 916 452 5 233 935 28 905 673 62 675 489 

Fixed assets expenditures (Nota 17) 22 377 449 2 938 637 1 911 120 6 505 086

62 | 63 

ANNUAL REPORT 

SECIL 2008 

Concrete Aggregates 

Portugal Lebanon Tunisia Portugal 

Other non 

allocated Eliminations Consolidated 

123 732 166 5 755 711 5 124 895 15 497 206 44 334 160 - 564 174 635 

563 077 - 1 601 9 972 603 13 287 809 (78 533 420) - 

124 295 243 5 755 711 5 126 496 25 469 809 57 621 969 (78 533 420) 564 174 635 

11 525 874 510 859 444 240 5 042 479 (2 221 011) - 143 100 403 

(3 211 229) (195 352) (394 955) (3 213 485) (4 405 967) - (61 487 008) 

13 557 - 12 806 4 067 63 825 - 1 924 772 

217 692 - - 46 903 334 789 - 675 227 

- - - - - - (542 140) 

8 545 894 315 507 62 091 1 879 964 (6 228 364) - 83 671 254 

- - - (100 665) 560 104 - 921 607 

(1 392 262) 8 648 (50 387) (534 218) 16 998 134 - (9 463 114) 

7 153 632 324 155 11 704 1 245 081 11 329 874 - 75 129 747 

(2 091 040) (44 577) (13 142) (318 058) (1 720 599) - (19 762 938) 

5 062 592 279 578 (1 438) 927 023 9 609 275 - 55 366 809 

5 191 506 144 549 27 423 659 146 9 772 362 - 50 409 007 

(128 914) 135 029 (28 861) 267 877 (163 087) - 4 957 802 

17 925 924 - 2 050 829 - 9 286 862 - 126 901 593 

- - - 419 778 723 261 - 1 146 580 

69 394 564 4 080 996 3 849 021 25 002 009 71 871 137 - 711 032 495 

87 320 488 4 080 996 5 899 850 25 421 787 81 881 260 - 839 080 668 

17 407 023 927 878 1 526 781 7 686 540 68 222 475 - 425 502 246 

2 107 235 122 329 342 543 1 644 708 2 964 393 40 913 500

The segment information for the year ended 31 December 2008 of Sales and services rendered (net of cash discounts) by 

geographical destination, is as follows: 


Amounts in Euro Cement Concrete Aggregates Others Consolidated 

Sales e services rendered 

Portugal 212 635 111 120 136 845 14 570 154 33 655 963 380 998 073 

Lebanon 50 136 667 6 611 022 - - 56 747 689 

Tunisia 47 424 103 6 022 506 - - 53 446 609 

Angola 45 782 741 - - 826 45 783 567 

Cape Verde 4 059 440 - 816 722 11 274 4 887 436 

Spain 2 340 976 - - 1 802 897 4 143 873 

Ireland 3 964 388 - - - 3 964 388 

Others 46 763 390 - - 1 776 862 48 540 252 

413 106 816 132 770 373 15 386 876 37 247 822 598 511 887 

The segment information for the year ended 31 December 2007 of Sales and services rendered (net of cash discounts) by geographical 

destination, is as follows: 


Amounts in Euro Cement Concrete Aggregates Others Consolidated 

Sales e services rendered 

Portugal 191 935 068 123 732 166 15 497 206 35 056 835 366 221 275 

Lebanon 42 053 296 5 755 711 - - 47 809 007 

Tunisia 41 534 296 5 124 895 - - 46 659 191 

Angola 31 990 700 - - 3 081 31 993 781 

Cape Verde 2 376 175 - - 4 657 138 7 033 313 

Spain 6 301 118 - - 2 663 248 8 964 366 

Ireland 8 458 776 - - 8 458 776 

Others 45 081 068 - - 1 953 858 47 034 926 

369 730 497 134 612 772 15 497 206 44 334 160 564 174 635 

5. PERSONNEL COSTS 

As of 31 December 2008 and 2007 personnel costs were broken down as follows: 

PERSONNEL COSTS 




Remuneration of members of Statutory bodies (Note 6) 6 760 519 6 558 680 

Other remuneration 52 035 334 52 090 761 

Pensions and other post-employment benefits (Note 28) 2 264 333 3 024 814 

Other personnel expenses 19 128 550 16 888 411 

80 188 736 78 562 666

6. REMUNERATION OF MEMBERS OF 

STATUTORY BODIES 

As of 31 December 2008 and 2007 the 

remuneration of members of the Statutory 

bodies, including performance related 

bonuses were as follows: 

REMUNERATION OF MEMBERS OF STATUTORY BODIES 

7. OTHER OPERATING INCOME 

As of 31 December 2008 and 2007, operating 

income was as follows: 

Foreign exchange gains recorded in the 

year ended 31 December 2008 refer 

mainly to changes in exchange rates 

between the dates of purchase of 

goods or services and their respective 

financial settlement, and the translation 

impact on intra-group foreign 

currency denominated assets and liabilities 

mainly driven by the movement 

in the exchange rate of the U.S. dollar 

during the year. 

64 | 65 

ANNUAL REPORT 

SECIL 2008 


Secil Board of Directors 5 306 279 5 400 218 

Group companies statutory bodies 1 454 240 1 158 462 

6 760 519 6 558 680 

OTHER OPERATING INCOME 


Emission allowance allocated free of change (Note 32) 61 638 268 2 424 573 

Reversal of amortization charges - 153 946 

Capitalised costs 210 735 338 998 

Supplementary income 321 638 775 841 

Proceeds on disposal of emission allowances 1 994 928 - 

Foreign exchange gains 6 526 140 1 190 300 

Gains on waste treatment 2 036 468 1 451 301 

Others 4 701 180 4 276 323 

77 429 357 10 611 282

8. OTHER OPERATING COSTS 

As of 31 December 2008 and 2007, other operating costs comprised the following: 

OTHER OPERATING COSTS 


Emission allowance costs (Note 32) 61 638 268 2 424 573 

Donations 1 731 904 1 199 915 

Indirects taxes 1 783 159 2 049 512 

Foreign exchange losses 5 506 105 6 859 685 

Bank expenses 727 599 1 099 538 

Other operating costs 2 647 688 3 624 305 

74 034 723 17 257 528 

9. GROUP SHARE OF ASSOCIATES’ PROFITS 

During the years ended 31 December 2008 and 2007 the Group presented the following shares in associates’ profits: 

GROUP SHARE OF ASSOCIATES’ PROFITS 


Profit in associated comparies 

Ciment de Sibline S.A.L. a) - 150 748 

Chryso - Aditivos de Portugal, S.A. 12 659 (19 274) 

Setefrete, SGPS, S.A. 827 073 852 941 

Betão Liz, S.A. b) 245 828 

Cimentaçor - Cimentos dos Açores, Lda. b) - 69 542 

Cimentos Madeira, Lda. a) - (3 950) 

J.M. Henriques, Lda. 7 372 (100 665) 

(Nota 19) 847 104 1 195 170 

Other gains/losses in financial investments 

Viroc Portugal - Ind. Madeiras e Cimento, S.A. c) (524 162) (277 270) 

Be-Power, Serviços e Equipamentos, Lda - 3 707 

Impairment losses-reversal (Note 19) 1 893 - 

324 835 921 607 

a) The Group acquired control of these 

companies during the year ended 31 December 

2007, applying the full consolidation 

method post acquisition date. The 

amounts presented relate to profits pre the 

date on which control was acquired. 



b) The Group disposed these investments 

during the ended 31 December 2007. The 

amounts presented relate to profits prior to 

the disposal date. 

c) The amount relates to provisions for 

responsibilities acquired (Note 29), given 

that this associate reports negative equity. 

The company does not recognise deferred 

taxation on these amounts, as it 

applies article 46 of the Portuguese Corporate 

Income Tax Code (Código do 

Imposto sobre o Rendimento das Pessoas 

Colectivas).

10. NET FINANCE COSTS 

As of 31 December 2008 and 2007 net finance costs comprised the following: 

NET FINANCE COSTS 

Gains on financial instruments charged to the Group income statement relate to gains on interest rate swaps. 

11. INCOME TAX 

Secil Group is subject to special group tax 

regime, applicable to Group entities made 

up companies with shareholdings of 90% or 

more and which meet the conditions of article 

63 and subsequent articles of the 

Portuguese Corporate Income Tax Code 

Companies included in the regime, compute 

and recorded income tax on a stand 

alone basis. Gains computed at individual 

company level, can be set off against losses 

at the tax group holding level. 

In accordance with prevailing legislation, 

gains and losses of Group companies 

and associates arising from the 

application of the equity method are 

deducted or added, respectively, to determine 

the taxable income base. 

As of 31 December 2008 and 2007, income tax was made up as follows: 

The amount of Euros 16 715 414 reported 

as current income tax includes Euros 

2 161 559 related to a reversal of a provision 

raised in the prior year due to an 

excess in estimate calculated then and an 

amount of Euros 18 876 973 (Note 23) 

relating to the estimate of the current year 

income tax charge. 

Annual income tax returns are subject to 

review and adjustment by the Portuguese 

tax authorities for a period up to 4 years. 

However, if tax losses are reported, these 

may be subject to tax authority review 

and adjustment for a period up to 10 years. 

In other countries where the Group operates, 

these periods are different, generally 

greater. 

66 | 67 

ANNUAL REPORT 

SECIL 2008 


Interest and similar income: 

Other Interest income 3 023 210 2 299 947 

Other financial income 18 802 12 123 

3 042 012 2 312 070 

Interest and similar expenses: 

Interest paid on other loans (11 605 540) (11 685 058) 

Exchange differences on loans 687 710 (567 780) 

Gains / (losses) on financial instruments (Note 32) (500 790) 477 654 

Other financial costs (270 555) - 

(11 689 175) (11 775 184) 

INCOME TAX 

Dividends are included as part of taxable 

income in the year of receipt, on 

shares held for less than one year or if 

the shareholding represents less than 

10% of the share capital of the company 

invested in, unless the acquisition cost 

exceeds Euros 20 000 000. 


Current income tax 16 715 414 7 502 002 

Additional payment of corporate income tax 1 332 717 9 749 046 

Deferred tax 2 742 128 2 511 890 

20 790 259 19 762 938 

The Board of Directors believes that any 

future adjustments to tax returns resulting 

from reviews/inspections by tax authorities 

will not have a material effect on the 

consolidated financial statements as of 31 

December 2008.

The reconciliation of the effective income tax rate for the years ended 31 December 2008 and 2007 is as follows: 

INCOME TAX 

(a) This amount relates essentially to: 

b) The decrease reported under change 

in tax rate refers to the application of different 

country tax rates, namely Lebanon 

with an income tax of 15%. 




Profit before tax 91 122 303 75 129 747 

Expected income tax 24 147 410 19 909 383 

Differences (a) (690 103) (843 346) 

Recoverable tax losses (338 155) - 

Non recoverable tax losses 717 211 1 166 775 

Change in tax rate (b) (2 949 745) (1 307 711) 

Provision for current tax 1 332 717 9 749 046 

Adjustments in respect of prior years (1 076 547) 54 458 

Adjustments to taxable income (c) (352 529) (8 965 667) 

20 790 259 19 762 938 

Effective tax rate 22,8% 26,3% 


Goodwill impairment (Note 15) 3 078 878 542 140 

Effects arising from the application of the equity method (322 942) (921 607) 

Capital gains / (losses) for tax purposes (396 835) (3 805 320) 

Capital (gains) / losses for accounting purposes (475 327) (913 603) 

Provisions disallowed for tax purposes - 2 140 042 

Tax benefits (d) (11 675 290) (2 532 655) 

Dividends received from non EU companies 4 732 513 - 

Decrease in taxable provisions (684 087) (1 916 233) 

Intra-group earnings subject to taxation - 728 650 

Provisions taxed in previous years (910 386) (264 329) 

Intra-group earnings subject to double-taxation - 623 898 

Others 4 049 313 3 136 581 

(2 604 163) (3 182 436) 

Tax Effect (26.50%) (690 103) (843 346) 

c) The amount presented relates mainly 

to the elimination of the effect of international 

double taxation (euros 608,292), 

net of stand-alone taxation. 

d) The amount reported hereunder refers 

to tax benefits on exports and investments 

in Tunisia and a tax holiday of the 

Angolan subsidiary Secil Lobito.

12. MINORITY INTERESTS 

As of 31 December 2008 and 2007, breakdown of the minority interests disclosed in the Income Statement is as follows: 

MINORITY INTERESTS 

As of 31 December 2008 and 2007, breakdown of the minority interests disclosed in the Balance Sheet is as follows: 

MINORITY INTERESTS 

68 | 69 

ANNUAL REPORT 

SECIL 2008 


Secil Betões e Inertes Group 123 574 66 764 

Société des Ciments de Gabés and subsidiaries 69 841 39 216 

Secil Martingança and subsidiaries 38 997 34 306 

Secil - Companhia de Cimento do Lobito, S.A. 1 459 230 244 196 

Ciments de Sibline, S.A.L. 4 672 585 4 004 547 

Cimentos Madeira Group 760 664 707 309 

Others 430 363 (138 536) 

7 555 254 4 957 802 


Secil Betões e Inertes Group 404 542 279 762 

Société des Ciments de Gabés and subsidiaries 1 281 428 1 269 292 

Secil Martingança and subsidiaries 285 484 246 512 

Secil - Companhia de Cimento do Lobito, S.A. 7 567 131 5 873 726 

Ciments de Sibline, S.A.L. 40 976 595 37 337 522 

Cimentos Madeira Group 5 651 911 5 027 687 

Others 1 261 971 1 267 936 

57 429 062 51 302 437 

The following movements in minority interests were registered during the year ended 31 December 2008: 

Balance at 01/01/08 51 302 437 

Translation differences 2 910 679 

2007 Dividends (4 882 643) 

Changes in actuarial assumptions (4 486) 

Sibline fair value revaluation 423 127 

Change in consolidation scope 124 694 

Net profit for the year 7 555 254 

Balance at 31/12/08 57 429 062

13. BASIC EARNINGS PER SHARE 

Earnings are not diluted as there are no instruments convertible into Group shares, 

BASIC EARNINGS PER SHARE 


Profit attributable to Secil´s shareholders 62 776 790 50 409 007 

Weighted average number of ordinary shares in issue 48 735 540 48 735 540 

Basic earrings per share 1,288 1,034 

Diluted earrings per share 1,288 1,034 

The weighted average number of shares 

includes a deduction of 4 184 460 own 

treasury shares, owned by Secil and its 

subsidiaries, CMP, S.A. and Hewbol 

SGPS, Lda. 

14. APPROPRIATION OF NET PROFIT OF THE PRIOR YEAR 

The General Meeting, held on March 24 2008, deliberated that the net profit for 2007 be appropriated as follows: 

APPROPRIATION OF NET PROFIT OF THE PRIOR YEAR 


Dividend distribution 19 008 907 19 008 907 

Legal reserves 2 520 450 2 906 389 

Other reserves 28 879 650 36 212 481 

Net profit for the year 50 409 007 58 127 777 

Dividends distributed to Group companies, 

holding Secil shares, amounted to Euros 

350,284 paid to CMP – Cimentos Maceira 

e Pataias, S.A. and Euros 139,118 paid 



The Board of Directors’ proposes a final 

dividend of Euros 0.84 per share, totalling 

Euros 42 019 689.60, which have not been 

recognized as financial liabilities in these 

consolidated financial statements. 

to Hewbol, SGPS, S.A. and were recorded 

in the consolidated statement of changes 

in equity.

15. GOODWILL 

During the years ended 31 December 2008 and 2007, the following movements in goodwill were recognized: 

GOODWILL 

70 | 71 

ANNUAL REPORT 

SECIL 2008 


Gross amount at the beginning of the year 205 927 403 192 922 179 

Accumulated impairment losses (Note 4) (79 025 810) (79 098 417) 

Net amounts at the beginning of the year 126 901 593 113 823 762 

Fair Value Adjustment (188 763) - 

Impairment losses (Note 24) (3 078 879) (542 140) 

Acquisitions (Note 35) 249 145 17 941 355 

Exchange differences 269 260 (2 890 978) 

Transfers - (1 430 406) 

Ending Balance 124 152 356 126 901 593 

Goodwill was amortized up to 1 January 2004. From that date onwards goodwill amortisation was replaced by annual impairment 

testing. As of 31 December 2008 and 2007, goodwill comprised the following balances: 

Entity Date 31/12/08 31/12/07 

CMP - Cimentos Maceira e Pataias, S.A. 1994 48 835 643 48 835 643 

Société des Ciments de Gabés 2000 34 102 844 34 500 784 

Grupo Secil Betões e Inertes 2000 13 326 708 13 326 706 

Sud-Béton-Société de Fabrication de Béton du Sud 2001 2 016 491 2 050 829 

Setefrete, SGPS, S.A. 2003 2 227 744 2 227 744 

Ciments de Sibline, S.A.L. 2005 157 444 157 444 

Tecnosecil, S.A.R.L. 2005 1 708 672 1 615 352 

IRP- Industria de Reboco de Portugal, S.A. 2005 3 054 688 3 054 688 

Sicobetão - Fabricação de Betão, S.A. 2006 826 955 826 955 

Secil Cabo Verde Comércio e Serviços, S.A. 2005 139 445 139 445 

Secil Betões e Inertes, SGPS, S.A. 2006 610 191 610 191 

Ecoresíduos - Centro de Trat. e Val. de Resíduos,Lda. 2006 - 3 078 879 

Secil Martingança, S.A. 2007 3 013 850 3 013 850 

Cimentos Madeira, S.A. 2007 1 811 967 1 811 967 

Minerbetão, Lda. 2007 934 328 934 328 

Ciments de Sibline, S.A.L. 2007 11 136 241 10 716 788 

Secil Prebetão, S.A. 2008 95 413 - 

Teporset 2008 153 732 - 

124 152 356 126 901 593

Goodwill is allocated to the Group’s cash generating units (CGU’s), in line with the respective country of operation and business 

segment, as follows: 

For impairment testing, the recoverable 

amount of the CGU’s is determined based 

on the value in use, according to the discounted 

cash flow method. Impairment 

tests are based on historical performance 

and expectations as to future business 

development assuming the current pro- 

Portugal TunIsia Lebanon Angola Cape Verde Total 

Cement 50 647 610 34 102 844 11 293 685 1 708 672 139 445 97 892 256 

Concrete 17 925 926 2 016 491 - - - 19 942 417 

Others 3 303 833 3 013 850 - - - 6 317 683 

71 877 369 39 133 185 11 293 685 1 708 672 139 445 124 152 356 

IMPAIRMENT ASSUMPTIONS 

duction capacity and structure, underpinned 

by the Group’s Five Year business 

plan. Based on calculations to date, a 

Goodwill impairment loss was identified in 

the current period in Ecoresíduos, Lda, 

in an amount of Euros 3 078 879, and 

charged as an asset impairment charge in 

the consolidated income statement. 

Impairment testing was based on the 

following assumptions: 

Income 

WACC* tax 

Portugal 7,50% 26,50% 

Tunisia 9,00% 30,00% 

Lebanon 13,50% 15,00% 

* After income tax 


Financial Statements

16. OTHER INTANGIBLE ASSETS 

The amount of Euros 40 031 139 recorded 

under this caption corresponds to 

the fair value of the greenhouse emission 

allowances allocated gratuitously and 

deposited in the Portuguese emission 

licences register in favour of Secil Group 

OTHER INTANGIBLE ASSETS 

Amounts in Euro 

Under the National Plan of the Allocation 

of allowances (PNALE), an annual quota 

of 2 689 994 tonnes of greenhouse gas 

emission allowances were granted to 

Secil Group companies for the period 

2008-2012. 

companies related for the year 2007, netted 

by the licences handed back, to the 

Licensing Coordinating Entity for the 

actual emissions of 2007. 

During the year 2008, changes under this 

caption were as follows: 

72 | 73 

ANNUAL REPORT 

SECIL 2008 

Acquisition cost 

Amounts as of January 1, 2008 106 306 

Emission allowances received in 2008 64 237 057 

Disposal of emission allowances (2 001 144) 

Emission allowances handed back to the Licensing Coordinating Entity (106 307) 

Fair value of emission allowances held (22 204 773) 

Amount as of December 31, 2008 40 031 139

17. PROPERTY, PLANT AND 

EQUIPMENT 

The following movements in property, 

plant and equipment were recognized 

in the years ended 31 December 2008 

and 2007: 

PROPERTY, PLANT AND EQUIPMENT 



Amounts in Euro Lands 

Acquisition Cost 

Amounts of January 1, 2008 142 558 016 

Changes of perimeter 4 295 012 

Acquisitions 209 278 

Disposals (128 265) 

Write-offs and transfers 785 223 

Exchanges differences (203 404) 

Amounts as of December 31, 2008 147 515 860 

Accumulated depreciations and impairment losses 

Amounts of January 1, 2008 (26 101 734) 

Changes of perimeter - 

Depreciations and impairmnets losses (Note 8) (1 902 116) 

Disposals 5 850 

Write-offs and transfers 364 363 

Exchanges differences 95 362 

Amounts as of December 31, 2008 (27 538 275) 

Net amounts as of January 1, 2008 116 456 282 

Net amounts as of December 31, 2008 119 977 585 

Group companies with head offices in 

Portugal revaluated their fixed assets in previous 

years according to the applicable 

legislation, namely Ministerial Order nº 258 

of December 28, 1963 and Decree-Laws 

nº 126/77, nº 430/78, nº 219/82, nº 319- 

G/84, nº 118-B/86, nº 111/88, nº 49/91, nº 

264/92, nº 22/92 and nº 31/98.

74 | 75 

ANNUAL REPORT 

SECIL 2008 

Buildings and Equipment and Assets 

other constructions other tangibles in progress Advances Total 

352 369 799 1 155 869 505 14 301 339 2 366 328 1 667 464 987 

501 679 816 251 3 402 345 68 000 9 083 287 

701 801 6 612 225 31 047 468 3 069 644 41 640 416 

(507 396) (5 003 388) - - (5 639 049) 

2 225 508 17 472 181 (19 909 555) (1 284 835) (711 478) 

1 675 907 4 011 351 231 163 167 109 5 882 126 

356 967 298 1 179 778 125 29 072 760 4 386 246 1 717 720 289 

(248 717 206) (951 639 143) - - (1 226 458 083) 

(218 969) (1 298 044) - - (1 517 013) 

(9 816 812) (45 074 521) - - (56 793 449) 

76 978 4 530 558 - - 4 613 386 

(170 258) 498 242 - - 692 347 

(650 956) (1 367 623) - - (1 923 217) 

(259 497 223) (994 350 531) - - (1 281 386 029) 

103 652 593 204 230 362 14 301 339 2 366 328 441 006 904 

97 470 075 185 427 594 29 072 760 4 386 246 436 334 260

The following is a breakdown of the historical costs and revalued amounts for fixed assets, net of accumulated depreciation as 

of December 31, 2008: 

PROPERTY, PLANT AND EQUIPMENT 

Acquisition Revalued 

Item cost Revaluation book value 

Land 109 171 869 10 805 716 119 977 585 

Building and other constructions 80 862 262 16 607 813 97 470 075 

Equipment 185 096 738 330 856 185 427 594 

375 130 869 27 744 385 402 875 254 

18. INVESTMENT PROPERTIES 

As of 31 December 2008 and 2007 investment 

properties incorporate the acquisition 

cost, net of accumulated depreciation, 

INVESTMENT PROPERTIES 

of a building owned by Secil, with a remaining 

useful life of 11 years, located in Rua 

Conselheiro Fernando Sousa, in Lisbon, 

presently rented to third parties. 

19. INVESTMENTS IN ASSOCIATES 

During the years ended 31 December 2008 and 2007, changes in associated companies were as follows: 

Investment properties had the following 

movements during the year ended 31 

December 2008: 


Opening balance 347 910 363 907 

Depreciation and amortisation (costs/reversals) (15 996) (15 997) 

Closing Balance 331 914 347 910 

INVESTMENTS IN ASSOCIATES 




Opening balances 1 146 580 38 009 899 

Changes of consolidation perimeter - (23 054 164) 

Fair values - (2 513 131) 

Disposals - (11 810 165) 

Apropriated net profit (Note 9) 847 104 1 195 170 

Dividends received (853 125) (1 084 688) 

Exchanges differences (48) 400 765 

Impairment losses-reversal (Note 9) 1 893 - 

Other (40 256) 2 894 

Closing Balance 1 102 148 1 146 580

The amount of Euros 2,513,131 of fair value 

in associates reported in 2007, relates to the 

fair values of assets and liabilities at the 

date of acquisition of control, totalling Euros 

135 167 for Cimentos Madeira, S.A. Euros 

and Euros 2 377 964 for Ciments de Sibline, 

S.A. The corresponding fair values prior this 

date, were registered directly in equity. 

As of 31 December 2008 and 2007, the 

investment in associates in the balance 

sheet had the following breakdown: 


As of 31 December 2008 the associates 

presented the following financial information: 

76 | 77 

ANNUAL REPORT 

SECIL 2008 

Associates’ Companies % detida 31/12/08 31/12/07 

Secil - Energia, Lda. 100,00% 55 264 53 371 

Transecil, Lda. 33,00% - 748 

Chryso - Aditivos de Portugal, S.A. 40,00% 30 914 18 255 

Setefrete, SGPS, S.A. 25,00% 625 583 651 635 

MC - Materiaux de Construction 49,36% 2 745 2 793 

J.M. Henriques, Lda. 28,57% 387 642 419 778 

1 102 148 1 146 580 


31/12/08 

Associates’ Companies Assets Liabilities Equity (a) Net income 

Chryso - Aditivos de Portugal, S.A. c) 1 855 987 1 778 701 77 286 15 228 

MC- Materiaux de Construction 590 829 604 748 (13 919) (21 789) 

Inertogrande 2 022 592 2 058 891 (36 299) (39 218) 

Viroc Portugal - Indústrias de 

Madeira e Cimento, S.A. c) 8 592 974 17 685 447 (9 092 473) (1 262 426) 

J.M. Henriques 1 046 440 271 152 775 288 (143 280) 

Setefrete, SGPS, S.A. b) 16 945 254 14 440 623 2 504 631 3 034 056 

a) Includes net income attributable to Secil’s equity holders 

b) Amounts as of 31 December 2007, deducted from distributed dividends 

c) Amounts as of November 2008

20. OTHER NON-CURRENT ASSETS 

As of 31 December 2008 and 2007, 

other non-current assets, net of impairments 

(Note 24), had the following breakdown: 

OTHER NON-CURRENT ASSETS 


Angolan bonds 4 019 304 3 910 951 

Derivative financial instruments (Nota 33) 2 616 782 - 

Pledges given to third parties 1 336 005 1 205 454 

Others 1 341 607 1 153 863 

9 313 698 6 270 268 

21. INVENTORIES 

As of 31 December 2008 and 2007, inventories, 

net of impairments (Note 24), had 

the following breakdown: 

INVENTORIES 


Raw materials 63 324 780 47 919 043 

Work in process 552 972 360 955 

Finished products 24 358 003 15 790 636 

Goods held for resale 7 072 432 5 727 204 

Advances to suppliers - 5 434 

95 308 187 69 803 272 

22. RECEIVABLE 

AND OTHER CURRENT ASSETS 

As of 31 December 2008 and 2007, recei- 

RECEIVABLE AND OTHER CURRENT ASSETS 



vables and other current assets, net of 

impairments (Note 24), had the following 

breakdown: 


Customers 81 365 805 84 550 082 

Customers - associated companies (Note 34) 14 921 47 847 

Other debtors 8 574 081 16 921 282 

Accrued income 1 318 979 1 252 635 

Deferred charges 1 228 217 1 069 095 

92 502 003 103 840 941

As of 31 December 2008 and 2007, other debtors presented the following composition: 

OTHER DEBTORS 

The decrease in non-refundable grants 

receivable from IAPMEI was due to the 

receipt of a substantial part of these 

financial incentives in the current period. 


accrued income and deferred costs 

comprised the following: 

78 | 79 

ANNUAL REPORT 

SECIL 2008 


Shareholders and Associated Companies 

Group Companies - 4 679 

Associated companies (Note 34) 1 413 048 348 068 

Shareholoders (Note 34) 256 992 251 427 

1 670 040 604 174 

Other debtors 

Advances to suppliers 1 070 518 1 228 649 

Fair value of derivative financial instruments (Note 33) - 969 988 

Non-refundable grant receivable from IAPMEI 357 482 7 549 821 

EDP 1 424 961 919 086 

IMT 628 722 747 349 

Others debtors 3 422 358 4 902 215 

6 904 041 16 317 108 

ACCRUED INCOME AND DEFERRED COSTS 

8 574 081 16 921 282 


Accrued income 

Interest receivable 378 954 207 672 

Gain on derivative financial instruments 199 958 - 

Indemnities receivable - 725 092 

EDP 171 259 - 

Others 568 808 319 871 

1 318 979 1 252 635 

Deferred costs 

Insurance costs 85 346 187 825 

Leases 413 038 485 150 

Others 729 833 396 120 

1 228 217 1 069 095 

2 547 196 2 321 730

23. STATE AND OTHER PUBLIC ENTITIES 

On 31 December 2008 and 2007, there were no overdue balances owing to the State and other government entities. The balances 

under this caption are as follows: 

Current assets 


State and other public entities 

Corporate income tax (IRC) 9 393 027 12 377 675 

Individual income tax (IRS) 529 - 

Value added tax 3 058 751 2 159 199 

Others 405 622 2 368 080 

12 857 929 16 904 954 


INCOME TAX 

On 31 December 2008 and 2007, the corporate income tax category presented the following composition: 

31/12/08 31/12/07 

Debtor Creditor Net Net 

Amounts in Euro Balance Balance Balance balance 

Income tax for the year (Note 11) (1 044 478) 17 832 495 18 876 973 7 389 819 

Exchange differences 6 308 52 016 45 708 (141 722) 

Payments on account 1 402 786 (9 033 313) (10 436 099) (11 118 492) 

Group tax regimes - (1 390 272) (1 390 272) - 

Withholding tax 4 854 494 (938 895) (5 793 389) (3 808 902) 

Prior year's income tax 4 173 917 (52 353) (4 226 270) (38 620) 

Tax assessments - 19 581 586 19 581 586 19 535 611 

9 393 027 26 051 264 16 658 237 11 817 694 

The caption corporate income tax (Portuguese 

abbreviation IRC) relating to prior 

years includes an amount of EUR 4 032 592 

in respect of foreign investment related tax 

incentives, contemplated in Decree-Law 

401/99 of 14 October, part of the acquisition 




State and other public entities 

Corporate income tax (IRC) 26 051 264 24 195 369 

Individual income tax (IRS) 4 221 659 3 272 256 

Value added tax 5 802 170 6 315 195 

Social Security contributions 1 517 489 1 445 029 

Others 779 054 600 621 

38 371 636 35 828 470 

of Societé des Ciments de Gabes. The 

incentives take the form of a income tax 

deduction of up to 10% of the investment, 

subject to a maximum amount of EUR 

5 985 575. 

Notwithstanding ICEP's favourable position 

on awarding the incentives, the 

Portuguese Tax Authorities rejected the 

award of this tax incentive, and Secil contested 

this decision in the tax courts. The 

legal proceedings initiated in 2004 in the

Almada Administrative and Tax Court which 

ruled in Secil's favour on 18 January 2008, 

in an amount of EUR 5 985 575. The incentive 

was registered by Secil in 2007. 

In 2008, the related receivable balance 

registered the following movements: 

24. IMPAIRMENTS OF CURRENT 

AND NON-CURRENT ASSETS 

During the year ended 31 December 2008, 

changes in impairment of non-current assets 

were as follows: 

During the year ended 31 December 

2008, changes in impairment of current 

assets were as follows: 

80 | 81 

ANNUAL REPORT 

SECIL 2008 

Tax benefits recorded in 2007 5 985 575 

Indemnity interest charged 374 382 

Indemnity interest received (153 150) 

Benefits received (2 174 214) 

Amounts as of December 31, 2008 4 032 593 

Other Non-Current Assets 

Goodwill 

Investments 

in associated Financial Other 

Amounts in Euro (Nota15) in companies Investments receivables 

Opening balance 79 025 810 18 172 531 357 1 277 467 

Increases 3 078 879 - - 193 318 

Reversals - (1 895) - (85) 

Exchange differences - - 23 555 - 

Transfers - - - 385 275 

Closing balance 82 104 689 16 277 554 912 1 855 975 


Receivables Other 

Amounts in Euro Inventories Customers assoc. comp. receivables 

Opening balances 4 743 236 17 812 747 2 440 060 6 772 142 

Changes of perimeter 6 989 348 072 - - 

Increases 306 565 3 211 198 94 878 63 622 

Reversals (53 023) (1 256 984) - (3 222) 

Direct utilizations - (561 997) - (251 743) 

Exchange differences 98 414 23 514 - 1 181 

Transfers - - - (385 274) 

Closing balance 5 102 181 19 576 550 2 534 938 6 196 706

25. SHARE CAPITAL 

AND TREASURY SHARES 


SHARE CAPITAL AND TREASURY SHARES 

share capital of Secil was fully subscribed 

for and paid in, and represented by 

52 920 000 shares with a nominal value 

of 5 Euros each. 

The companies CMP - Cimentos da Madeira e Pataias, S.A and Hewbol, S.G.P.S., S.A are Group subsidiaries, and the 922 800 and 

365 100 shares held respectively by each of these Group companies are disclosed as treasury shares in the Group's consolidated 

financial statements. 

26. RESERVES AND RETAINED EARNINGS 

At 31 December 2008 and 2007, this category had the following breakdown: 

The following movements were registered in this category during the current year: 


following shareholders had significant 

stakes in the company's share capital: 

% 

Name Nº of Shares 31/12/08 31/12/07 

Beton Catalan, SL 23 880 414 45,13% 45,13% 

Cimentospar - Participações Sociais SGPS, LDA. 21 728 520 41,06% 41,06% 

Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. 3 126 606 5,91% 5,91% 

Treasury shares 4 184 460 7,91% 7,91% 

52 920 000 100,00% 100,00% 

RESERVES AND RETAINED EARNINGS 

Legal reserve and other reserve 




Revaluation reserve 15 355 280 16 024 196 

Legal reserve 30 520 295 27 999 844 


132 284 953 120 062 442 

Revaluation Legal Other 

Amounts in Euro reserve reserve reserves Total 

Opening balance 16 024 196 27 999 844 76 038 402 120 062 442 

Distribution of reserve - - (18 508 673) (18 508 673) 

Reserves used during period (668 916) - - (668 916) 

Application of preceding 

years’ net profit - 2 520 450 28 879 650 31 400 100 

Closing balance 15 355 280 30 520 294 86 409 379 132 284 953

As deliberated at the General Meeting, 

held on September 30th, 2008, Euros 

18 508 674 of reserves were distributed. 

Legal reserve 

Commercial law requires that a minimum 

5% of annual net profits be transferred 

to a legal reserve, until the reserve attains 

a total of 20% of share capital. 

CURRENCY TRANSLATION RESERVE 

Retained earnings 

The Group posted the following movements 

under this category during the 

year ended 31 December 2008: 

(i) an increase amounting to Euros 

245 212 (Note 35), related to a fair value 

adjustment attributable to shareholdings 

held by Sibline, at the date control was 

acquired by Secil. 

(ii) an increase of Euros 1 923 335 

(net of deferred tax of Euros 693 447) 

This reserve cannot be distributed to the 

shareholders except on liquidation of the 

company, but may be used to absorb losses, 

after all other reserves have been utilized, 

or to increase share capital. 

Other Reserves 

Reserves available for distribution to shareholders 

and result from the transfer of previous 

years net profits. 

regarding a variation in the fair value of 

hedge derivatives (Note 33). 

(iii) an increase of Euros 668 916 (net 

of deferred tax) through the transfer of 

revaluation reserves, related to Secil's 

revaluation reserve. 

A total of Euros 23 284 783 of realized 

revaluation reserves, net of deferred tax, 

were transferred from revaluation reserves, 

in line with Accounting Directive nº 16, and 

cannot be distributed to shareholders. 

82 | 83 

ANNUAL REPORT 

SECIL 2008 

Currency Translation 

Reserve 

The amount of Euros 72 404 274 refers to 

translation differences arising at Group 

level from the translation of the financial 

statements of companies operating outside 

the Euro zone, namely Tunisia, 

Lebanon, Angola. The movement in the 

year is as follows: 

Opening Closing 

Entity balance Increases Decreases balance 

Société des Ciments de Gabès: 

Financial statements conversion (39 786 810) - (1 668 879) (41 455 689) 

Positive consolidation differences conversion (19 298 023) - (432 276) (19 730 299) 

Secil Angola, S.A.R.L. (ex-Tecnosecil): 

Financial statements conversion 2 274 772 - (238 517) 2 036 255 

Extend of net investment (2 054 574) 246 844 - (1 807 730) 

Positive consolidation differences conversion (130 451) 93 320 - (37 131) 

Secil - Companhia de Cimentos do Lobito, S.A. 

Financial statements conversion (560 976) - - (560 976) 

Ciment de Sibline, SAL: 

Financial statements conversion (12 084 418) 2 091 921 - (9 992 497) 

Positive consolidation differences consersion (1 464 423) 608 216 - (856 207) 

(73 104 903) 3 040 301 (2 339 672) (72 404 274)

27. DEFERRED TAXES 

The movements in deferred tax assets 

and liabilities for the year ended 31 

December 2008 were as follows: 

DEFERRED TAXES 



January, 1 

Amounts in Euro 2008 

Temporary differences - deferred tax assets 

Taxed provisions 15 809 009 

Tax losses carried forward 19 348 199 

Liabilities with retirement benefits (Note 28) 953 614 

Liabilities with long service award (Note 28) 1 409 358 

Underfunding of the persion fund (Note 21) 1 340 716 

Retirement benefits not covered by an autonomus fund (Nota 28) 12 108 988 

Liabilities for healthcare benefits (Note 28) 13 860 418 

Deferred gains in inter-group transactions 1 940 891 

Fair value in business combinations 5 377 040 

Other temporary differences 680 034 

72 828 267 

Temporary differences-deferred tax liabilities 

Revaluation on fixed assets (14 436 006) 

Fair value in business combinations (107 781 037) 

Deferred losses in inter-group transactions (39 961 850) 

Deferred taxation on capital gains (1 477 490) 

Increased amortization (2 870 055) 

Financial instruments (Note 32) (969 988) 

Overfunding of pension fund (1 297 177) 

Other temporary differences (373 993) 

(169 167 596) 

Amount reflected on the balance sheet 

Deferred tax assets 18 452 346 

Deferred tax liabilities (48 112 660)

84 | 85 

ANNUAL REPORT 

SECIL 2008 

Exchange Net profit for Retained Changes of December, 31 

adjusment the year earnings perimeter, (Note 35) 2008 

(50 908) 1 385 245 - 131 184 17 274 530 

- (18 630 438) - 86 467 804 228 

7 355 242 825 (43 757) - 1 160 037 

- 95 537 (183 130) - 1 321 765 

(1 948) (2 056 783) 899 348 - 181 333 

- (755 863) (178 019) - 11 175 106 

- 224 631 (2 140 055) - 11 944 994 

- 1 865 311 - - 3 806 202 

903 207 209 774 - (1 009 060) 5 480 961 

- 1 942 443 - - 2 622 477 

857 706 (15 477 318) (1 645 613) (791 409) 55 771 633 

- 3 803 879 - (1 418) (10 633 545) 

978 650 (4 821 773) - (4 245 147) (115 869 307) 

- (799 656) - - (40 761 506) 

- 159 570 - (6 270) (1 324 190) 

51 640 (320 105) - - (3 138 520) 

- 1 100 747 (2 616 782) - (2 486 023) 

- 1 402 191 (2 730 684) - (2 625 670) 

(311) 316 392 - - (57 912) 

1 029 979 841 245 (5 347 466) (4 252 835) (176 896 673) 

119 390 (3 755 042) (429 889) (93 681) 14 293 124 

395 484 1 516 414 (1 421 182) (1 126 998) (48 748 942)

Deferred tax assets on tax losses 

carried forward 

Deferred taxes on tax losses are recognised 

as assets to the extent there is a 

reasonable assurance that the tax bene- 

fits will be realized through future tax profits. 

Deferred tax assets related to tax 

losses carried forward will be utilized 

against future taxable profits, broken 

down as follows: 

DEFERRED TAX ASSETS ON TAX LOSSES CARRIED FORWARD 



Amounts in Euro 31/12/08 31/12/07 Ending date 

Secilpar, SL - 18 657 766 - 

Teporset - Terminal Portuário de Setúbal, S.A. 29 033 - 2014 

Ecoresíduos, Lda. 547 640 535 477 2012 

Minerbetão, S.A. 227 555 154 956 2013 

804 228 19 348 199 

Water Park, Maceira-Liz Plant

Unrecognised deferred taxes on tax 

losses carried forward 

Unrecognised deferred taxes on tax losses, 

which the Group deems unrecoverable 

at the balance sheet are as follows: 

UNRECOGNISED DEFERRED TAXES ON TAX LOSSES CARRIED FORWARD 

86 | 87 

ANNUAL REPORT 

SECIL 2008 


Secil Pré-betão, S.A. 1 096 206 4 207 097 

Secil Angola, SARL 8 502 077 7 247 037 

Hewbol, SGPS, Lda 290 861 - 

Florimar, SGPS, Lda 13 064 - 

Betomadeira, S.A. 915 697 743 345 

Madebritas, Lda. 29 707 35 792 

Promadeira, Lda. 737 377 85 751 

Cimentos Costa Verde 424 654 351 518 

Secil Cabo Verde 22 425 - 

Serife, Lda. 7 952 - 

Zarzis Béton 49 644 - 

Sobioen, S.A. - 1 077 106 

Silonor, S.A. 6 952 716 6 083 736 

19 042 380 19 831 382

28. PENSIONS AND OTHER 

POST-EMPLOYMENT BENEFITS 

As referred to in Note 1.19 the Group grants its employees and family several postemployment 

benefits. 

The following movements in responsibilities under this category were recognized in the consolidated 

balance sheet as of 31 December 2008: 

PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS 

Openning Net profits 

Amounts in Euro balance for the year 

Post-Employment Benefits 

Group liability for pensions 12 108 988 731 499 

Under/(Overfunding) of pensions funds 43 539 158 140 

Death and retirement 953 614 333 794 

Assistance in health 13 860 418 905 610 

Long service award 1 409 357 135 290 

28 375 916 2 264 333 

The costs incurred with pensions for the year ended 31 December 2008 is presented as follows: 

Current 

Amounts in Euro services 

Post-Employment benefits 

Group liability for pensions 153 470 

Pensions with autonomous funds 675 813 

Death and retirement 68 315 

Assistance in health 215 237 

Long service award 60 735 

1 173 570 

The gains and losses recognized directily in equity for the year ended 31 December 2008 is presented as follows: 


Post-Employment Benefits 

Group liability for pensions 

Pensions with autonomous funds 

Death and retirement 

Assistance in health 

Long service award 


Financial Statements

88 | 89 

ANNUAL REPORT 

SECIL 2008 

Responsability 

accrual 

Retained Exchange Paid/collectable Funds Closing 

earnings differences Payments prizes provision balance 

(178 019) - (1 487 363) - - 11 175 105 

(1 831 334) (1 948) - 27 266 (839 999) (2 444 336) 

(43 757) 7 355 (90 970) - - 1 160 036 

(2 140 055) - (680 979) - - 11 944 994 

(183 130) - (70 489) - - 1 291 028 

(4 376 295) 5 407 (2 329 801) 27 266 (839 999) 23 126 827 

Interest Expected return Curtailment Impact in the profit 

cost on the plan assets gains Others for the year 

578 029 - - - 731 499 

2 454 231 (2 285 787) (686 117) - 158 140 

66 659 - - 198 820 333 794 

690 373 - - - 905 610 

74 555 - - - 135 290 

3 863 847 (2 285 787) (686 117) 198 820 2 264 333 

Actuarial gains and losses 

Other Return of assets Deferred tax Net 

deviations expected vs actual Total (Note 27) amount 

178 019 - 178 019 (41 123) 136 896 

2 354 703 (523 369) 1 831 334 (487 674) 1 343 660 

43 757 - 43 757 (15 165) 28 592 

2 140 055 - 2 140 055 (565 193) 1 574 862 

183 130 - 183 130 (48 529) 134 601 

4 899 664 (523 369) 4 376 295 (1 157 684) 3 218 611

The responsibilities and costs presented 

above relate to various Group company 

plans, with the following key description: 

DEFINED BENEFIT PLANS 

DESCRIPTION 

Secil Group has the following defined benefit 

plans: 

(i) Defined benefit plans through funds 

managed by third parties 

Responsibilities for retirement and 

death benefits 

Secil and its subsidiaries: 

(i) CMP- Cimentos Maceira e Pataias, S.A.; 

(ii) Unibetão- Indústrias de Betão Preparado, 

S.A.; (iii) Cimentos Madeira, Lda.; 

(iv) Societé des Ciments de Gabes; have 

the commitment to grant their employees 

cash pension related benefits covering retirement, 

disability, early retirement and 

death benefits. 

The plan liabilities are covered by independent 

funds, managed by third parties, or 

covered by insurance policies. 

Plans are appraised on a semester basis, 

at the date of closing of the interim and 

annual accounts, by specialised and independent 

entities under the projected unit 

credit method. 

(ii) Defined benefit plan managed by 

the Group 

Liabilities for retirement and surviving 

spouse pensions 



Responsibilities related to personnel already 

retired at the date of inception of the 

fund, 31 December 1987, are the sole responsibility 

of Secil. Liabilities of Portuguese 

subsidiaries operating in the concrete and 

mortar activities are the direct responsibility 

of the respective entities. 

These plans are also appraised every 

semester by an independent entity, using 

the capital coverage method corresponding 

to single premiums for life long pension payments 

covering current pensioners and the 

projected unit credit method to value responsibilities 

covering current employees. 

Liabilities for healthcare benefits 

Secil and its subsidiaries CMP- Cimentos 

Maceira e Pataias, S.A., Cimentos Madeira, 

Lda. and Brimade - Sociedade de Britas da 

Madeira, S.A., have awarded employees 

private healthcare benefits, in addition to 

health cover provided by the State and are 

extended to family members, pensioners 

and widows. Under this scheme, there are 

certain medical items are covered: (i) at 

Secil through a private Health Insurance 

Plan, (ii) at CMP, through “Cimentos - 

Federação das Caixas de Previdência”, for 

all member employees, and through the the 

company covering certain other medical 

items presented by non member employees 

and (iii) at Cimentos Madeira and 

Brimade through direct payment of certain 

medical items. 

Liabilities for retirement and death 

allowances 

The subsidiary CMP - Cimentos Maceira e 

Pataias, S.A. pay retirement and disability 

benefits. The retirement benefits represent 

three times the last monthly salary. 

Secil and its subsidiary CMP also provide 

death allowance cover on existing employees, 

which equals one times the last 

monthly salary. 

The subsidiaries Secil Angola, S.A.R.L. 

and Secil Lobito, S.A. (Angola) pay their 

employees on retirement date, in accordance 

with the General Labour Law no. 2/2000, 

a retirement allowance which represents a 

quarter of the last monthly salary multiplied 

by the number of years service in the 

employment of the company. 

The subsidiary Societé des Ciments de 

Gabes (Tunisia) have the obligation under 

the Collective Employment Agreement, article 

52) to pay a retirement allowance which 

corresponds to: (i) 2 times the the last 

monthly salary where the employee has less 

than 30 years employment service in the 

company and (ii) 3 times the last monthly 

salary if the employee has 30 years or more 

of service with the company.

Liabilities for long-term service commitments 

Secil and its subsidiaries CMP - Cimentos 

Maceira e Patais, S.A., have the 

obligation to pay benefits to those who: 

(i) In Secil, achieve 25, 35, 40 of years 

service; and (ii) In CMP, achieve 20 and 

35 years of service. Those premiums are 

to be paid in the year in which the 

employee attains the years of service. 

These commitments are funded by the 

Company. 

DETAILS OF LIABILITIES AND 

MOVEMENTS DURING THE YEAR 

ENDED AT 31 DECEMBER 2008 

AND 2007 

(i) Actuarial assumptions used 

Actuarial valuations carried out by independent 

entities for determining cumulative 

liabilities as at 31 December 2008 

and 2007 were based on the following 

assumptions: 

90 | 91 

ANNUAL REPORT 

SECIL 2008 

ASSUMPTIONS 

31/12/08 31/12/07 

Decret-Law Decret-Law 

nº 187/2007 nº 35/2007 

Social security sceme of May 10 of May 10 

Disability table EKV 80 EKV 80 

Mortality table TV 88/90 TV 88/90 

Growth rate of salaries 3.30% 3.30% 

Technical interest rate 5.25% 5.50% 

Growth rate of pensions 2.25% 2.25%



Liabilities for past service 

Active employees 

Retired employees 

Market value of pension funds 

Underfunding/(overfunding) 

The Group's liabilities registered the following movements in the current and previous year: 


Amount in Euro 

Liability at the beginning of the year 

Change in perimeter 

Exchange differences 

Values recognized in the income statement 

Current services 

Interest cost 

Expected return on the plan as sets 

Settements 

Values recorgnized in equity: 

Actuarial gains and losses 

Expected return on pensions funds 

Refirment charged 

Responsabilities transferred to the fund 

Pensions paid in the year 

Liability at the end of the year 



(ii) RESPONSIBILITIES FOR PAST SERVICE WITH PENSION AND SURVIVAL BENEFIT PLANS 

According to the actuarial valuations performed as at 31 December 2008 and 2007, the present value of the obligations 

and market values of fund assets/insurance policies are as follows: 

The fund assets/insurance policies registered the following movements in the current and previous year: 

PENSIONS AND OTHER POST-EMPLOYMENT 

31/12/08 31/12/07 

Autonomous Covered Autonomous Covered 

Amounts in Euro fund capital fund capital 

Opening balance 41 031 753 2 039 384 40 431 118 - 

Change in perimeter - - - 1 901 053 

Exchange differences - (1 161) - - 

Contributions during the year 839 999 104 173 1 310 000 61 822 

Return of funds in the year 1 602 547 159 871 1 981 379 257 865 

Pensions paid (2 761 582) - (2 690 744) - 

Retirement charged - (233 636) 

Insurance-reimbursement - (131 439) - (181 356) 

40 712 717 1 937 192 41 031 753 2 039 384

31/12/08 31/12/07 

Autonomous Insurance Assumed Autonomous Insurance Assumed 

fund policy by the group Total fund policy by the group Total 

42 124 065 990 610 12 108 988 55 223 663 44 062 625 - 12 890 247 56 952 872 

- - - - - 897 811 682 116 1 579 927 

- (3 109) - (3 109) - - - - 

631 965 43 848 153 470 829 283 686 481 36 066 168 095 890 642 

2 151 099 303 132 578 029 3 032 260 2 027 259 40 401 623 154 2 690 814 

(2 114 986) (170 801) - (2 285 787) (1 760 215) (78 712) - (1 838 927) 

(686 117) - - (686 117) - - - - 

- 

(2 508 667) 153 964 (178 019) (2 532 722) (2 072 572) 16 332 (645 361) (2 701 601) 

2 114 986 170 801 - 2 285 787 1 760 215 78 712 - 1 838 927 

- (233 636) (233 636) 

- - - - 111 016 - (111 016) - 

(2 761 581) - (1 487 363) (4 248 944) (2 690 744) - (1 498 247) (4 188 991) 

38 950 764 1 254 809 11 175 105 51 380 678 42 124 065 990 610 12 108 988 55 223 663 

At years ended 31 December 2008 and 

2007, the fund assets were made up as 

follows: 


92 | 93 

ANNUAL REPORT 

SECIL 2008 

31/12/08 31/12/07 

Autonomous Insurance Assumed Autonomous Insurance Assumed 

fund policy by the group Total fund policy by the group Total 

11 601 597 1 254 809 532 830 13 389 236 15 014 440 990 610 597 671 16 602 721 

27 349 167 - 10 642 275 37 991 442 27 109 625 - 11 511 317 38 620 942 

(40 712 717) (1 937 192) - (42 649 909) (41 031 753) (2 039 384) - (43 071 137) 

(1 761 953) (682 383) 11 175 105 8 730 769 1 092 312 (1 048 774) 12 108 988 12 152 526 


Bonds-fixed rate - - 

Bonds-variable rate 13 196 333 25 466 232 

Public debt - 9 423 699 

Property 25 647 150 - 

Real estate 141 737 142 377 

Liquidity 1 458 143 5 999 445 

Other aplications-short term 269 354 - 

40 712 717 41 031 753

(iii) Responsibilities for past service with 

other post-employment benefits 

According to the actuarial valuations performed 

as at 31 December 2008 and 

2007, the present value of the obligations 

are as follows: 




31/12/08 

Assistance Retirement 

Amounts in Euro in health and death 

Liabilities for past services 

- Active employees 4 789 666 1 160 036 

- Retired employees 7 155 328 - 

11 944 994 1 160 036 

The Group's liabilities registered the following movements in the current and previous year: 

31/12/08 

Assistance Retirement 

Amounts in Euro in health and death 

Liabilities at the beginning of the year 13 860 418 953 614 

Chancge in perimeter - - 

Exchange differences - 7 355 

Values recognized in the income statement: 

Current services 215 237 68 315 

Interest cost 690 373 66 659 

Others - 198 820 

Values recognized in equity (2 140 055) (43 757) 

Benefits paid in the year (680 979) (90 970) 

Liability at the end of the year 11 944 994 1 160 036

94 | 95 

ANNUAL REPORT 

SECIL 2008 

31/12/07 

Long service Assistance Retirement Long service 

award Total in health and death award Total 

1 291 028 7 240 730 5 688 336 953 614 1 409 357 8 051 307 

- 7 155 328 8 172 082 - - 8 172 082 

1 291 028 14 396 058 13 860 418 953 614 1 409 357 16 223 389 

31/12/07 

Long service Assistance Retirement Long service 

award Total in health and death award Total 

1 409 357 16 223 389 14 318 994 928 737 1 443 724 16 691 455 

- - 188 167 - - 188 167 

- 7 355 - - - - 

60 735 344 287 269 101 94 023 63 618 426 742 

74 555 831 587 732 364 47 966 75 213 855 543 

- 198 820 - - - - 

(183 130) (2 366 942) (956 591) (53 145) (87 427) (1 097 163) 

(70 489) (842 438) (691 617) (63 967) (85 771) (841 355) 

1 291 028 14 396 058 13 860 418 953 614 1 409 357 16 223 389

29. PROVISIONS 

During the year 2008, provisions registered the following movements: 



Environmental 

Amounts in Euro Negative equity renovation Others Total 

Opening balance as of January 1, 2008 2 460 623 671 793 11 262 651 14 395 067 

Changes in consolidation perimeter 66 015 - (509 927) (443 912) 

Increases 524 163 493 197 3 390 811 4 408 171 

Utilizations - (49 957) (1 676 024) (1 725 981) 

Reversals (66 015) (76 920) (1 933 162) (2 076 097) 

Exchanges differences - - 175 962 175 962 

Balance as of December 31, 2008 2 984 786 1 038 113 10 710 311 14 733 210 

A provision has been being maintained 

to cover the negative equity of associated 

companies, in view of certain Group 

30. INTEREST-BEARING LIABILITIES 

As of 31 December 2008 and 2007, the breakdown of interest-bearing debt is as follows: 

INTEREST- BEAING LIABILITIES 

obligations undertaken in these associates, 

and increased by Euros 524 163 

in the current year (Note 9). 

Other provisions includes an increase 

of EUR 1 900 000 in the current year registered 

against retained earnings. 


Non-current 

Bond loans 40 000 000 40 000 000 

Bank loans 48 961 382 81 196 763 

Other loans - POE 208 079 208 079 

89 169 461 121 404 842 

Financial leases 464 109 503 763 

89 633 570 121 908 605 

Current 

Bank loans 69 106 147 69 880 770 

Financial leases 169 963 577 602 

69 276 110 70 458 372 

Other loans - POE - 12 413 315 

69 276 110 82 871 687 

158 909 680 204 780 292

Secil Betões e Inertes, S.A., a Group subsidiary, 

contracted bond financing in a 

total amount of Euro 40 000 000 on October 

22,2007. The bond securities was 

totally subscribed on issue through a private 

placement. Coupon interest is paid 

semi-annually with effective dates on 

22 October and 22 April every year. Repayment 

of the bond securities will be 

effective on the due date of the 20th coupon, 

October 22, 2017. A call option is in 

place for a total or partial early settlement 

on the 10th, 12th, 14th, 16th or 18th interest 

settlement due dates. 

As of 31 December 2008 and 2007, the breakdown of net interest-bearing debt 

is as follows: 

The maturity profile of bank financing and 

other non-current loans is as follows: 

96 | 97 

ANNUAL REPORT 

SECIL 2008 


Interest-bearing liabilities 

Non-current 89 425 491 121 700 526 

Current 69 276 110 70 458 372 

158 701 601 192 158 898 

Cash and cash equivalents 

Cash on hand 310 516 488 887 

Short term bank deposits 3 509 369 10 849 585 

Other cash investments 30 341 925 42 961 123 

34 161 810 54 299 595 

Net debt 124 539 791 137 859 303 


1 to 2 years 32 230 177 35 324 055 

2 to 3 years 8 662 800 33 679 741 

3 to 4 years 3 685 774 6 824 620 

4 to 5 years 2 513 102 3 036 832 

More than 5 years 42 077 608 42 539 594 

89 169 461 121 404 842

Financial lease liabilities 


Group's indebtedness under financial 

lease liabilities, is as follows: 

FINANCIAL LEASE LIABILITIES 

As of December 31, 2008, the Group utilizes 

the following assets acquired under 

finance lease agreements: 


undrawn credit facilities were Euros 

617 537 375 and Euros 525 128 289, 

respectively. 

Financial Covenants 

Under certain financing agreements, 

there are contractual commitments to 

maintain certain pre-agreed financial 

ratio limits. 




Less than 1 year 175 304 614 047 

1 to 2 years 116 463 318 664 

2 to 3 years 103 171 128 997 

3 to 4 years 88 215 69 467 

4 to 5 years 41 866 18 190 

More than 5 years 120 685 - 

645 704 1 149 365 

Future interest - deductible (11 632) (68 000) 

Present value of financial lease liabilities 634 072 1 081 365 

LIABILITIES RELATED TO FINANCIAL LEASES 

Acquisition 

31/12/08 

Accumulated Net book 

Amounts in Euro cost depreciation value 

Buildings and other constructions 4 313 592 (724 296) 3 589 296 

Basic equipment 137 749 (137 749) - 

Transportation equipment 174 390 (148 105) 26 285 

4 625 731 (1 010 150) 3 615 581

31. OTHER NON-CURRENT LIABILITIES 

As of 31 December 2008 and 2007, other 

non-current liabilities comprised the 

following: 

OTHER NON-CURRENT LIABILITIES 

32. PAYABLES AND OTHER CURRENT 

LIABILITIES 

As of 31 December 2008 and 2007 payables 

and other current liabilities presented 

the following breakdown: 

The amount of Euros 39 646 725 reported 

as payable to the “Instituto do Ambiente”, 

relates to the fair value of CO 2 emission 

allowances, that are to be delivered for the 

equivalent amount of emissions for the year 

ended 31 December 2008, corresponding to 

2 581 167 tonnes valued at Euros 15.36/ton 

(at 31 December of 2007, 2 635 405 tons 

valued at Euros 0.02/ton) which were allocated 

free of charge to the Group under the 

National Plan for the Allocation of CO 2 

Emission Licences (PNALE). 

98 | 99 

ANNUAL REPORT 

SECIL 2008 


Other shareholders (Note 34) 2 571 870 2 149 951 

Fair value of financial derivative instruments (Note 33) 130 759 - 

2 702 629 2 149 951 

PAYABLES AND OTHER CURRENT LIABILITIES 


Accounts payable 37 058 196 43 417 290 

Accounts payable - related parties (Note 34) 2 521 743 1 321 099 

Accounts payable - fixed assets suppliers 6 322 883 7 293 864 

Other accounts payable - related parties (Note 34) 1 001 219 2 599 742 

“Instituto do Ambiente” 39 646 725 52 710 

Other creditors 9 208 474 9 380 420 

Accrued costs 20 894 517 19 762 295 

Deferred income 6 515 331 8 032 472 

123 169 088 91 859 892

As at 31 December 2008 and 2007, accrued 

costs and deferred income were represented 

as follows: 

ACCRUED COSTS AND DEFERRED INCOME 




Accrued costs 

Insurance 78 727 185 126 

Payroll 10 171 648 10 655 869 

Interest payable 1 058 348 1 422 270 

Electricity 3 792 260 1 815 039 

Transportation services 1 191 009 1 064 842 

Shareholders (Note 34) 35 485 1 790 000 

Concession of Socorridos’ terminal 747 811 595 840 

Others 3 819 229 2 233 309 

20 894 517 19 762 295 

Deferred income 

Government grants 5 971 286 7 704 699 

Grants - CO 2 emission allowance 384 415 53 597 

Others 159 630 274 176 

6 515 331 8 032 472 

GOVERNMENT GRANTS: MOVEMENTS 


Opening balances 7 704 699 8 771 940 

Changes in perimeter - 479 334 

Exchange differences (38 671) (89 165) 

Grants received in the year 7 541 477 987 

Grants recognized in P&L (1 376 110) (1 924 772) 

Estimative for addtional grant to receive - - 

Reclassification (326 173) (10 625) 

Closing balance 5 971 286 7 704 699

GRANTS – CO 2 EMISSION ALLOWANCES: MOVEMENT 

100 | 101 

ANNUAL REPORT 

SECIL 2008 



Allowances returned (53 597) (186 194) 

Grants received in the year 64 237 057 2 587 428 

Grants recognized in income statement (Notes 7 and 8) (61 638 268) (2 424 573) 

Sale of emission allowances (2 001 144) - 

Fair value recognition (213 230) (167 390) 

Closing balance 384 415 53 597 

Amounts in tons of CO 2 emission allowances 


Allowances returned (185 988) (28 734) 

Grants received in the year 2 689 994 2 812 422 

Grants recognized in P&L (2 581 167) 2 635 405 

Sale of emission allowances (83 800) - 

Closing balance 25 027 185 988 

The significant increase in grants received and recognized in results in the current year is due to the changes in the unitary 

market value of the allowances. 

33. DERIVATIVE FINANCIAL 

INSTRUMENTS 

To limit the Group to interest rate exposure 

derived from bank financing, the 

Group has contracted a set of derivative 

financial instruments. 

The Group has also contracted derivative 

financial instruments to hedge the 

the risk of price volatility linked to highly 

likely future transactions of emission 

allowances.



As of 31 December 2008 and 2007, the fair value of derivative financial instruments had the following breakdown: 

DERIVATIVE FINANCIAL INSTRUMENTS 

Notional 31/12/08 31/12/07 

Amounts in Euro Currency Amount Positive Negative Net Positive Negative Net 

Negociation 

Interest 

rate options EUR 35 742 182 - (87 178) (87 178) 361 229 - 361 229 

Interest 

rate swaps (IRS) EUR 35 742 182 - (43 581) (43 581) 608 759 - 608 759 

71 484 364 - (130 759) (130 759) 969 988 - 969 988 

Cash flow hedge 

“EU emmission 

allowances” EUR 8 176 000 2 616 782 - 2 616 782 - - - 

The variation of Euros 130 759 in the fair 

value of “negotiation derivatives” was 

recorded under interest and similar 

expenses in the consolidated income 

statement (Note 10). 

The variation of Euros 2 616 782 in the 

fair value of “cash flow hedge of derivatives” 

was registered as part of retained 

earnings. 

On 5 September and 19 November 2008, 

Secil entered into swap agreements of 

“Emission EU Allowances (EUA) and 

Certified Emission Reductions "(CER) 

with a financial institution, corresponding 

to the future receipt of the amounts 

of Euros 6 778 688. 

The Group will deliver in future periods 

CER allowances to the licensing coordination 

entity, as part of its obligations to 

the stated entity. 

034. BALANCES AND TRANSACTIONS WITH RELATED PARTIES 

As of 31 December 2008, receivables from related parties are as follows: 

ASSETS 

79 660 364 2 616 782 (130 759) 2 486 023 969 988 - 969 988 

The Group views this transaction as a 

swap of similar goods with similar value 

in use, not exposed to future volatility in 

market prices of the allowances and 

consequently not regarded as a transaction 

which generates revenue in the 

current period. Revenue arising from 

this transaction is recognized in the 

income statement on its maturity date. 

Shareholders 

Accounts and associated Other 

Amounts in Euro receivable companies debtors 

Shareholders, including subsidiaries’ shareholders 

Semapa, SGPS, S.A. - 5 501 - 

Beton Catalan, SL - - 2 270 

Other subsidiaries’ shareholders and other related parties - 251 491 - 

Associated companies and joint ventures 

J.M. Henriques, Lda. - 102 113 - 

Cimentaçor - Cimentos dos Açores, Lda - 69 - 

Secil Unicon - SGPS, Lda - 193 900 7 550 

Inertogrande 230 283 - 

Secil Prebetão - Pré-Fabricados de Betão, S.A. 14 291 - 77 564 

Teporset - 886 683 - 

14 921 1 670 040 86 095

As of 31 December 2008, payables to 

related parties are as follows: 

BALANCES AND TRANSACTIONS WITH RELATED PARTIES 

Other Shareholders- Other 

non-current short current Accrued 

Amounts in Euro liabilities item labilities costs 

Shareholders, including 

subsidiaries’ shareholders 

Semapa, SGPS, S.A. - - - 6 502 

Cotif Sicar - 59 960 - - 

Cimentospar, SGPS, Lda. - - 34 780 28 398 

Seribo, S.A. - 185 759 - - 

CRH, plc - - 2 060 000 - 

Other subsidiaries’ shareholders and other related parties 2 571 870 755 500 - - 

Associated companies 

and join ventures 

Setefrete, S.A. - - 91 387 - 

Chryso Portugal, S.A. - - 395 471 - 

Secil Prebetão - Pré-Fabricados de Betão, S.A. - - 10 105 - 

2 571 870 1 001 219 2 521 743 35 485 

During the current year, transactions with 

related parties were represented as 

follows: 


102 | 103 

ANNUAL REPORT 

SECIL 2008 

Purchase of Sales and Other 

goods and Financial services operacional Financial 

Amounts in Euro services costs rendered costs income 

Shareholders 

Semapa, SGPS, S.A. 69 843 127 724 - 140 - 

Irish Cement, Ltd. 10 055 - 3 964 388 19 367 - 

Cimentospar, Lda. 332 013 - - - - 

CRH, plc 2 060 000 - - - - 

Associated companies 

and joint ventures 

Viroc Portugal, S.A. - - 1 174 964 9 639 142 576 

Secil Pré-betão, S.A. 53 865 5 970 587 249 126 691 - 

Setefrete, S.A. 1 413 360 - - - - 

Chryso Portugal, S.A. 1 919 645 - - 97 385 - 

Inertogrande - - - 1 816 - 

J.M. Henriques - - - 1 070 - 

Secil Unicon, SGPS, Lda. - - - 2 500 6 161 

Teporset - - - - 11 683 

5 858 781 133 694 5 726 601 258 608 160 420

35. CHANGES 

IN THE CONSOLIDATION SCOPE 

During the year of 2008, changes to the 

consolidation scope had the following 

impact in the consolidated financial statements: 


Amounts in Euro Total Alienation 

Acquired 

subsidiaries 

Non-Current Assets 

Property, plant and equipmanet (Note 17) 7 566 274 (984 953) 8 551 27 

Deferred tax assets (Note 27) (93 681) - (93 681) 

Other non-current assets (179 810) (179 810) - 

Current assets 

Inventories 736 452 (88 801) 825 253 

State ans other public entities 59 985 (48 287) 108 272 

Other current assents 68 612 (688 439) 757 051 

Minority interests (Note 13) (547 821) (63 418) (484 403) 

Non-current liabilities 

Provisions (Note 29) 443 912 (66 015) 509 927 

Pensions and other post-employment benefits - - - 

Deferred tax liabilities (Note 27) (1 126 998) - (1 126 998) 

Other non-current liabilities 318 519 318 519 - 


Interest-bearing liabilities (3 179 078) 322 500 (3 501 578) 

State and other public entities (808) 18 986 (19 794) 

Other current liabilities (376 380) 1 465 897 (1 842 277) 

Total acquired / integrated 3 689 178 6 179 3 682 999 

Goodwill (Note 15) 60 382 - 60 382 

Equity fair value (Note 26) (245 812) - (245 812) 

Negative difference on aquisitions (182 446) - (182 446) 

Net acquisition cost 3 321 302 6 179 3 315 123 

Cash and cash equivalents 163 984 (6 179) 170 163 

Net equity acquired / integrated 3 485 286 - 3 485 286 

Scope inclusions 

■ Colegra, Exploração de Pedreiras. S.A, 

with its head office in Vila Nova de 

Famalicão, was fully acquired on 4 December 

2008. 

■ A stake of 50% was aquired in Teporset, 

Terminal Portuário de Setúbal, 

S.A., with its head Office in Oeiras, on 27 

June 2008. 

■ Rubetão, Pré-Fabricados de Betão, 

S.A., was merged with Secil Prebetão, 

S.A, on 31 July 2008, through an issue of 

shares by Secil Prebetão. 



Scope exclusions 

■ Carcubos, liquidated on 12 December 

2008 

■ Camilo & Lopez, liquidated on 11 

December 2008. 

■ Sobioen - Soluções de Bioenergia, S.A, 

sold on 4 December 2008.

36. ENVIRONMENTAL RELATED 

EXPENDITURE 

In the development of its activity, the 

Group incurs several environmental 

charges which, depending on its nature, 

are capitalized or recognised as 

costs in the operating results of the 

period. 

Environmental related expenses incu- 

rred by the Group necessary to preserve 

resources, avoid or reduce future 

damages, are capitalized when they are 

expected to extend useful life or increase 

capacity, improve safety or efficiency 

of other assets held by the Group. 

The related expenditures capitalized 

and expensed during the year ended 31 

December 2008, are as follows: 

ENVIRONMENTAL RELATED EXPENDITURE 

Expenses Capitalizaded 

Areas of the year in the year Total 

CO 2 emissions 2 450 431 2 248 019 4 698 450 

Management of residual waters 13 488 90 392 103 880 

Waste/residuals management 898 701 10 610 132 11 508 833 

Protection of soils and underground waters 102 519 113 588 216 107 

Nature protection 626 268 2 200 628 468 

4 091 407 13 064 331 17 155 738 

CO 2 Emission Licences 

As part of the Kyoto Protocol, the European 

Union has committed itself to reduce greenhouse 

gas emissions. As part of this 

commitment a EU Directive was issued 

that foresees the trading of CO 2 emission 

licenses, subsequently enacted into Portuguese 

legislation and which is applicable 

from 1 January 2005 to various industries, 

including the cement industry (Note 16). 

37. AUDITING AND STATUTORY 

AUDITING EXPENSES 

Costs incurred with the statutory audit 

for the years 2008 and 2007 were as 

follows: 

AUDITING AND STATUTORY AUDITING EXPENSES 

104 | 105 

ANNUAL REPORT 

SECIL 2008 


Statutory audit services 307 729 266 876 

Other reliability assurance services - 7 773 

Tax consultancy services 25 314 83 862 

333 043 358 511

38. AVERAGE NUMBER OF EMPLOYEES 

The average number of employees of the various Group companies, allocated by 

business segment, was the following for the current and previous year: 

AVERAGE NUMBER OF EMPLOYEES 

39. COMMITMENTS 


commitments and guarantees undertaken 

by the Group were as follows: 

COMMITMENTS 



Country 31/12/08 31/12/07 

/Segment Cement Concrete Aggregates Trading Others Total Cement Concrete Aggregates Trading Others Total 

Portugal 703 329 160 - 234 1 426 711 350 156 - 263 1 480 

France - - - - 1 1 - - - - 2 2 

Lebanon 413 68 - - - 481 424 53 - - - 477 

Angola 290 - - - - 290 286 - - - - 286 

Cape Verde - - 23 - 14 37 - - 30 - 17 47 

Spain - - - 2 - 2 - - - 3 - 3 

Tunisia 345 92 - - - 437 380 94 - - - 474 

Total 1 751 489 183 2 249 2 674 1 801 497 186 3 282 2 769 

Entity 31/12/08 31/12/07 

Guarantees 

2ª Repartição dos Serviços de Setúbal 9 656 170 9 656 170 

AKA (Lebanon) 7 703 563 7 563 037 

IAPMEI (POE) 4 943 803 9 777 175 

Câmara Municipal de Setúbal 956 275 956 275 

APSS - Administração dos Portos de Setúbal e Sesimbra 401 882 372 468 

APDL - Administração do Porto de Leixões 583 796 583 796 

Direcção Geral de Alfândegas 800 000 800 000 

Comissão de Coordenação e Desenv. Regional Centro 785 473 785 473 

Instituto de Conservação da Natureza - Arrábida 944 649 664 010 

INGA - Instituto Nacional de Garantia Agricola - 185 334 

IAPMEI (PEDIP) 99 760 129 289 

BNA (Tunisia) 247 036 465 170 

Comissão de Coordenação e Desenv. Regional LVT 876 372 - 

Others 1 389 194 1 404 804 

29 387 973 33 343 001 

Letters of credit: 430 243 6 011 906 

Purchase commitments with suppliers 32 529 272 46 686 518 

On 31 December 2008, the Group had issued guarantees on financial institution borrowings in a total amount of Euros 29 711 188.

40. OTHER COMMITMENTS OF 

THE GROUP 

Pledges 

During 2000 Secil contracted bank loans 

to finance the acquisition of Société des 

Ciments de Gabés in Tunisia, with maturity 

in 2010. Under the terms of the financing, 

Secil handed an irrevocable power 

of attorney to the banks enabling the 

latter to pledge the shares acquired as 

guarantee for the loans in the event of 

non-compliance under the financing 

agreements. 

The subsidiary Société des Ciments 

de Gabès, contracted a loan of TND 

15 000 000 (Euros 8 823 529) with a financial 

institution in Tunisia, for the acquisition 

of plant equipment. 

Under the terms of the loan 

Société des Ciments de 

Gabés handed an irrevocable 

power of attorney to 

the bank, enabling the latter 

to pledge the equipment 

acquired as guarantee 

for the loans in the 

event of non-compliance 

under the financing agreements. 

In April 2005, the subsidiary 

Secil Martingança, 

Lda, contracted a loan with 

a financial institution with 

maturity in 2012, to finance 

the acquisition of subsidiaries 

IRP – Indústrias de 

Rebocos de Portugal, S.A. 

and Lusocil – Sociedade 

Portuguesa de Cimento 

Cola, S.A. 

Under the terms of the 

financing, the Company 

handed an irrevocable 

power of attorney to the 

banks enabling the latter 

to pledge the shares acquired 

as guarantee for the 

loans in the event of noncompliance 

under the financing 

agreements. 

Comfort letters 

Secil issued a comfort letter in favour of 

a financial institution as guarantee for certain 

financing contracted by its associated 

company Viroc Portugal, S.A., in an 

amount of Euros 2 574 082. 

Investment in a new plant in Angola 

In terms of the Memorandum of Understanding 

signed on April 2004 between 

the Angolan Government and Secil’s subsidiary, 

Secil – Companhia de Cimento 

do Lobito, S.A. - 51% held by the Secil 

Group and 49% held by the Angolan State 

- was incorporated on 29 November 2005 

and commenced trading on 1 January 

2006. Consequently, the rental contract 

for the utilization and operating of the 

Encime plant in Lobito, entered previously 

106 | 107 

ANNUAL REPORT 

SECIL 2008 

into by the Angolan State 

and TecnoSecil and in force 

since September 2000, 

has officially dissolved. 

Secil Lobito’s share capital of USD 

21 274 286 was paid in through the 

transfer of tangible and intangible 

assets previously owned by Tecnosecil 

and Encime U.E.E., held respectively by 

the Secil Group and the Angolan Government, 

at values determined by a 

valuation carried out in October 2003 by 

an independent international audit firm. 

It was foreseen at the date of incorporation 

of Secil Lobito, that within a 

time horizon of 36 months from the date 

the share capital was paid u p , t h e 

company would install 

a cement factory in 

Lobito. 

On 26 October 2007, 

the Government of Angola 

approved the investment 

project for the 

new production line (in 

original form: “Projecto 

de Investimento Privado 

“Nova Fábrica de Cimento 

e Clinker – Secil 

Lobito”) in an amount 

of USD 91 539 000, officially 

contracted between 

Secil Lobito and 

ANIP – “Agência Nacional 

para o Investimento 

Privado”, the 

state entity coordinating 

private foreign investment 

in Angola, on 14 

December 2007. 

During the course of 

2008, an additional investment 

in an electrical 

power generating 

station, totaling USD 

18 000 000, was added 

to the investment approved 

in the preceding 

paragraph.

41. CONTINGENT 

ASSETS 

Revaluation under the 

Privatization process 

CMP Pension Plan 

The Group recorded 

EUR 5 598 358 (fully provided 

at present) in its 

annual financial statements 

for the year ended 

31 December 1995 in 

respect of an amount 

due from the Portuguese 

State arising from an 

actuarial valuation of retirement 

obligations of 

CMP as at 31 December 

1993, valued by a specialised 

and independent 

entity, as part of the CMP 

privatization programme. 

The valuation contained errors which were 

subsequently detected, and as a result, the 

Board of Directors of CMP made an official 

request to the Portuguese Government in 

1996 for the reimbursement of the abovementioned 

amount. 

On 16 September 1999, Secil’s Board 

of Directors filed a legal action against 

the Portuguese Government with the 

Lisbon Administrative Circuit Court, claiming 

payment of the aforesaid amount 

and respective interest. 

Maceira-Liz Plant 

On 30 September 2008, the Court ruled 

partially in the company’s favour, ordering 

the Portuguese Government to pay EUR 

3 114 891, plus interest arrears on the full 

amount from the date of acquisition of 

CMP by Secil. 

The State appealed against the decision, 

whilst Secil filed a subordinated appeal. 

Presently the appeal is underway. 

42. TRANSLATION RATES 

All assets and liabilities of foreign subsidiaries and associated companies are translated 

to Euros at the exchange rates prevailing on 31 December 2008. 

The income statement items are translated to Euros at the average exchange rates for 

the year. Exchange differences arising on such translation utilizing these exchange rates 

are registered in shareholder’s equity under currency translation reserves. 

The following exchange rates were applied to translate to Euros the foreign currency 

assets and liabilities on 31 December 2008 and 2007: 

COMMITMENT 

Valuation/ 

31/12/08 31/12/07 (depreciation) 

TND (tunisian dinar) 

Average exchange rate for the year 1.8012 1.7498 (2.94%) 

Exchange rate at the end of the year 1.8216 1.7911 (1.70%) 

LBN (lebanese pound) 

Average exchange rate for the year 2 217.10 2 066.00 (7.31%) 

Exchange rate at the end of the year 2 098.00 2 219.20 5.46% 

USD (american dollar) 

Average exchange rate for the year 1.4708 1.3705 (7.32%) 

Exchange rate at the end of the year 1.3917 1.4721 5.46%

43. COMPANIES INCLUDED IN CONSOLIDATION FULLY 

108 | 109 

ANNUAL REPORT 

SECIL 2008 

Direct and indirect % 

of equity held by Secil 

Name Head Office Direct Indirect Total 

Holding 

Secil - Companhia Geral de Cal e Cimento, S.A. Setúbal - - - 

Subsidiaries 

Parcim Investments, B.V. Amesterdam 100.00 - 100.00 

Secilpar, SL. Madrid - 100.00 100.00 

Somera Trading Inc. Panamá - 100.00 100.00 

Hewbol, SGPS, Lda. Funchal - 100.00 100.00 

Secil Cabo Verde Comércio e Serviços, Lda. Praia - 100.00 100.00 

ICV - Inertes de Cabo Verde, Lda. Praia 37.50 25.00 62.50 

Florimar- Gestão e Participações, SGPS, Lda. Funchal 100.00 100.00 

Seciment Investments, B.V. Amesterdam 100.00 - 100.00 

Serife - Sociedade de Estudos e Realizações 

Industriais e de Fornecimento de Equipamento, Lda. Lisbon 58.40 - 58.40 

Silonor, S.A. Dunkerque - France 100.00 - 100.00 

Société des Ciments de Gabès Tunis 98.72 - 98.72 

Sud- Béton- Société de 

Fabrication de Béton du Sud Tunis - 98.72 98.72 

Zarzis Béton Tunis - 78.97 78.97 

Tercim- Terminais de Cimento, S.A. Lisbon 100.00 - 100.00 

Secil Angola, SARL Luanda 100.00 - 100.00 

Secil - Companhia de Cimento do Lobito, S.A. Lobito - 51,00 51.00 

Secil, Betões e Inertes, S.G.P.S., S.A. e Subsidiárias Setúbal 91.85 8.15 100.00 

Britobetão - Central de Betão, Lda. Évora - 73,00 73.00 

Unibetão - Indústrias de Betão Preparado, S.A. Lisbon - 100.00 100.00 

Secil Britas, S.A. Penafiel - 100.00 100.00 

Sicobetão - Fabricação de Betão, S.A. Pombal - 100.00 100.00 

Colegra - Exploração de Pedreiras, S.A V. N. Famalicão - 100.00 100.00 

Minerbetão - Fabricação de Betão Pronto, Lda. Leiria - 100.00 100.00 

Secil Martingança - Aglomerantes e Novos Materiais para a Construção, Lda. Leiria 51.19 45.81 97.00 

IRP - Industria de Rebocos de Portugal, S.A. Lisbon - 97.00 97.00 

Condind - Conservação e 

Desenvolvimento Industrial, Lda. Setúbal 50.00 50.00 100.00 

Ciminpart - Investimentos e Participações, SGPS, S.A. Lisbon - 100.00 100.00 

Argibetão - Sociedade de Novos Produtos de 

Argila e Betão, S.A. Lisbon - 90,87 90.87 

Ave- Gestão Ambiental e Valorização Energética, S.A. Lisbon - 51.00 51.00 

Cimentos Costa Verde - Comércio 

de Cimentos, Lda. Lisbon - 100.00 100.00 

Ecoresíduos - Centro de Tratamento 

e Valorização de Resíduos,Lda. Lisbon 50.00 50.00 100.00 

Prescor Produção de Escórias Moídas, Lda. Lisbon - 100.00 100.00 

CMP - Cimentos Maceira e Pataias, S.A. ("CMP") Leiria 100.00 - 100.00 

Ciments de Sibline, S.A.L. Beirut 28.64 22.03 50.67 

Soime, S.A.L. Beirut - 50.67 50.67 

Premix Liban, S.A.L. Beirute - 50.67 50.67 

Cimentos Madeira, Lda Funchal 57.14 - 57.14 

Beto Madeira - Betões e Britas da Madeira, S.A. Funchal - 57.14 57.14 

Promadeira - Sociedade Técnica de 

Construção da Ilha da Madeira, Lda. Funchal - 57.14 57.14 

Sanimar Madeira, Sociedade de 

Materiais de Construção, Lda Funchal - 57.14 57.14 

Brimade - Sociedade de Britas da Madeira, S.A. Funchal - 57.14 57.14 

Madebritas - Sociedade de Britas da Madeira, Lda.(a) Funchal - 29.14 29.14 

Pedra Regional - Transformação e Comercialização(a) 

de Rochas Ornamentais, Lda. Funchal - 29.14 29.14 

(a) Entities in which the Group has the power to determine the entities’ financial and operating policies, through the 51% shareholding 

position of Madebritas, Lda in this subsidiaries.

PROPORTIONATELY CONSOLIDATED SUBSIDIARIES 




Secil Unicon - SGPS, Lda Lisbon 50.00 - 50.00 

Secil Prébetão, S.A. Montijo - 39.80 39.80 

Teporset - Terminal Portuário de Setúbal, S.A. Oeiras - 50.00 50.00 

44. COMPANIES EXCLUDED FROM 

CONSOLIDATION 

These companies were neither fully nor 

proportionately consolidated. However 

they are considered to be immaterial for 

a true and fair presentation of the financial 

position and results of the Group’s 

operations. 

COMPANIES EXCLUDED FROM CONSOLIDATION 

45. ASSOCIATED COMPANIES 






Secil Energia, Lda. Setúbal - 100.00 100.00 

Secil Algérie, S.P.A. Algéria 94.00 6.00 100.00 




Viroc Portugal- Indústrias de Madeira e Cimentos, S.A. Setúbal - 32.83 32.83 

Chryso Portugal, S.A. Lisbon - 40.00 40.00 

Setefrete, SGPS, S.A. Setúbal - 25.00 25.00 

Terminal Cimentier de Gabès Gabès - 33.33 33.33 

MC - Matériaux de Construction Gabès - 49.36 49.36 

J.M. Henriques, Lda. Câmara de Lobos - 28.57 28.57 

46. MANDATORY DISCLOSURE REQUIRED BY PORTUGUESE GAAP (POC) 

The mandatory disclosure including information in notes required under this disclosure 

in the financial statements, is reported under this note.

46.1. CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2008 AND 2007 

110 | 111 

ANNUAL REPORT 

SECIL 2008 

31/12/08 31/12/07 

Gross Amortisations Net Net 

Amounts in Euro value and provisions assets assets 

ASSETS 

FIXED ASSETS 

Intangible assets 

Industrial property and others rights 40 031 139 - 40 031 139 106 306 

Consolidation differences 124 152 356 - 124 152 356 126 901 593 

164 183 495 - 164 183 495 127 007 899 

Tangible assets 

Land and natural resources 147 515 857 (27 538 274) 119 977 583 116 456 282 

Buildings and other equipment 356 967 297 (259 497 222) 97 470 075 103 652 593 

Machinery and equipment 1067 003 336 (902 288 189) 164 715 147 179 389 975 

Transport equipment 34 415 303 (31 625 222) 2 790 081 4 047 394 

Tools and utensils 5 4 09 532 (5 181 296) 228 236 294 102 

Administrative equipment 36 102 178 (33 320 866) 2 781 312 2 906 079 

Reusable containers 284 482 (202 808) 81 674 79 104 

Other tangible fixed assets 36 563 293 (21 732 149) 14 831 144 17 513 708 

Construction in progress 29 072 762 - 29 072 762 14 301 339 

Advances to suppliers 

of tangible fixed assets 4 386 246 - 4 386 246 2 366 328 

1 717 720 286 (1 281 386 026) 436 334 260 441 006 904 

Financial Investments 

Investments in subsidiaries 74 285 (16 277) 58 008 56 164 

Investments in associated companies 1 044 140 - 1 044 140 1 090 416 

Securities and other investments 6 030 895 (1 180 225) 4 850 670 4 707 365 

Advances on acccount 

of investments - - - 28 357 

7 149 320 (1 196 502) 5 952 818 5 882 302 

MEDIUM AND LONG TERM ASSETS 

Receivables 

Other debtors 4 034 135 (1 855 975) 2 178 160 1 936 008 


Inventories 

Raw, subsidiary and consumable materials 68 027 143 (4 702 362) 63 324 781 47 919 043 

Work in progress 552 972 - 552 972 360 955 

Finished goods and intermediate products 24 683 003 (325 000) 24 358 003 15 790 636 

Goods held for resale 7 147 251 (74 820) 7 072 431 5 727 204 

Advances on account of inventories - - - 5 434 

100 410 369 (5 102 182) 95 308 187 69 803 272 

Accounts receivable - short term 

Accounts receivable from customers 80 515 351 (2 275 558) 78 239 793 81 989 059 

Notes receivable from customers 2 638 631 (117 405) 2 521 226 1 811 084 

Doubtful accounts receivable 17 803 295 (17 183 587) 619 708 797 787 

Accounts receivable from group companies - - - - 

Accounts receivable 

from associated companies 3 947 986 (2 534 938) 1 413 048 340 732 

Advances to suppliers 1 265 488 - 1 265 488 1 228 649 

Accounts receivable from suppliers of fixed assets 12 376 - 12 376 10 064 

Accounts receivable from state entities 12 857 929 - 12 857 929 16 904 954 

Other debtors 12 079 874 (6 197 706) 5 883 168 14 318 294 

131 120 930 (28 308 194) 102 812 736 117 400 623 

Banks and cash 

Bank deposits 33 851 294 - 33 851 294 53 810 708 

Cash 310 516 - 310 516 488 887 

34 161 810 - 34 161 810 54 299 595 

ACCRUALS AND DEFERRALS 

Accrued income 3 935 761 - 3 935 761 2 222 624 

Deferred costs 3 853 887 - 3 853 887 2 366 273 

Deferrred tax assets 14 293 124 - 14 293 124 18 452 345 

22 082 772 - 22 082 772 23 041 242 

Total amortization (1 281 386 026) 

Total provisions (36 462 853) 

Total assets 2 180 863 117 (1 317 848 879) 863 014 238 840 377 845

CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2008 AND 2007 


EQUITY, MINORITY INTERESTS AND LIABILITIES 

EQUITY 

Share capital 264 600 000 264 600 000 

Treasury stock - nominal value (20 922 302) (20 922 302) 

Treasury stock - discounts and premiums (1 687 443) (1 687 443) 

Consolidation differences 967 972 967 972 

Adjustment in investments in subsidiaries and affiliated companies (6 095 086) (6 095 086) 

Accumulated exchange adjustments (72 404 274) (73 104 903) 

Revaluation reserves 15 355 280 16 024 196 

Reserves: 

Legal reserves 30 520 294 27 999 844 


Retained earnings 33 676 884 28 046 298 


393 197 494 362 275 985 

MINORITY INTERESTS 57 429 062 51 302 437 

LIABILITIES 

Provisions 

Provision for pensions and other post employment benefits 25 571 161 28 332 377 

Provision for taxes 19 581 586 19 535 611 

Other provisions 14 733 210 14 395 066 

59 885 957 62 263 054 

Medium and long term liabilities 

Debenture loans 40 000 000 40 000 000 

Bank loans 48 961 382 81 196 764 

Other loans 208 079 208 079 


Accounts payable to suppliers of fixed assets 464 109 503 763 

92 205 442 124 058 557 

Short term liabilities 

Bank loans 69 106 148 69 558 270 

Other loans - 12 735 815 

Advances on sales 28 428 122 184 

Accoounts payable to suppliers 32 154 390 37 328 303 

Suppliers’ invoices pending 5 945 396 6 259 543 

Notes payable to suppliers 1 850 508 1 150 543 

Shareholders 401 219 2 500 000 

Advances from customers - 958 160 

Accounts payable to suppliers of fixed assets 6 492 845 7 871 466 

Accounts payable to state entities 18 790 050 16 292 859 


183 825 399 163 229 675 

ACCRUALS AND DEFERRALS 

Accrued costs 21 075 852 21 103 012 

Deferred income 6 646 090 8 032 467 

Deferred tax liabilities 48 748 942 48 112 658 

76 470 884 77 248 137 

Total equity, minority and liabilities 863 014 238 840 377 845

46.2 CONSOLIDATED INCOME STATEMENT BY NATURE FOR YEARS ENDED 31 DECEMBER 2008 AND 2007 


112 | 113 

ANNUAL REPORT 

SECIL 2008 

EXPENSES 

Cost of inventories sold ans consumed 168 452 486 153 444 173 

External supplies and services 201 137 467 182 818 764 

Personnel expenses: 

Salaries 58 795 853 58 649 442 

Social charges: 

Pension and other post employment benefits 889 639 1 742 529 

Other 20 503 244 80 188 736 18 170 695 78 562 666 

449 778 689 414 825 603 

Tangible and intangible assets amortizations 60 310 241 62 029 148 

Adjustments 3 869 581 2 597 383 

Provisions 5 721 528 69 901 350 11 376 144 76 002 675 

519 680 039 490 828 278 

Taxes 2 427 737 2 049 512 

Other operating costs 62 507 302 64 935 039 3 369 961 5 419 473 

(A) 584 615 078 496 247 751 

Losses on associated companies 567 985 401 159 

Financial investments 

amortizations and adjustments 15 996 70 766 

Interest and similar costs 21 792 727 22 376 708 22 416 483 22 888 408 

(C) 606 991 786 519 136 159 

Extraordinary expenses 3 802 775 3 744 641 

(E) 610 794 561 522 880 800 

Income tax for the year 21 769 543 10 013 892 

632 564 104 532 894 692 

Minority interests 7 555 254 4 957 802 

(G) 640 119 358 537 852 494 


702 896 148 588 261 501 

INCOME 

Sales of goods held for resale and finished goods 562 415 224 525 747 959 

Services rendered 37 575 633 599 990 857 40 172 610 565 920 569 

Variation in production 7 750 055 2 227 023 

Work for the company 210 734 338 998 

Supplementary income 2 358 106 2 227 142 

Subsidies 61 725 204 2 487 464 

Other operating income 3 454 563 1 399 358 

Amortisations and adjustment reversals 1 313 312 69 061 919 848 741 7 301 703 

(B) 676 802 831 575 449 295 

Gains in associated companies 890 927 1 322 766 

Gains on shares and other investments 1 284 121 

Other interest and similar income 12 082 986 12 975 197 4 644 551 5 967 438 

(D) 689 778 028 581 416 733 

Extraordinary income 13 118 120 6 844 768 

(F) 702 896 148 588 261 501 

Operating results (B)-(A) 92 187 753 79 201 544 

Net financial results (D-B)-(C-A) (9 401 511) (16 920 970) 

Current results (D)-(C) 82 786 242 62 280 574 

Profit before tax (F)-(E) 92 101 587 65 380 701 

Consolidated net profit for the year (F)-(G) 62 776 790 50 409 007

46.3 FUNCTIONAL CONSOLIDATED INCOME STATEMENT FOR YEARS ENDED 31 DECEMBER 2008 AND 2007 

The Functional Income Statement presents 

extraordinary results different from 

that required by Portuguese GAAP (POC) 

for the preparation of the Income Sta- 

tement by Nature. Consequently, the 

amount of extraordinary results for the 

years ended 31 December 2008 and 2007, 

totalling Euros 9 315 345 and Euros 

3 100 127, and reported in the Income 

Statement by Nature (Note 46.2) was 

reclassified to current results: 

Income Statement 

31/12/08 31/12/07 

By Reclassi- By By Reclassi- Por 

nature fications funtions nature fications funtions 

Operating results 92 187 753 7 256 878 99 444 631 79 201 544 (5 279 336) 73 922 208 

Current results 82 786 242 8 336 061 91 122 303 62 280 574 3 100 127 65 380 701 

Extraordinary results 9 315 345 (9 315 345) - 3 100 127 (3 100 127) - 

Net profit for the year 62 776 790 - 62 776 790 50 409 007 - 50 409 007 

46.4. MANDATORY NOTES TO 

THECONSOLIDATED FINANCIAL 

STATEMENTS FOR THE YEAR 

ENDED 31 DECEMBER 2008 




Sales and services rendered 598 511 887 565 920 569 

Cost of sales and services rendered (354 831 845) (360 459 685) 

Gross Margin 243 680 042 205 460 884 

Other operating income 15 791 089 5 202 234 

Distribution costs (79 661 806) (63 110 815) 

Administrative costs (52 231 987) (49 762 782) 

Other operating expenses (28 132 707) (23 867 313) 

Operating results 99 444 631 73 922 208 

Net financing costs (8 647 163) (9 463 114) 

Gains/ (losses) in associated companies 324 835 921 607 

Current year results 91 122 303 65 380 701 

Income tax for the year (20 790 259) (10 013 892) 

Minority interests (7 555 254) (4 957 802) 


Earnings per share 1.29 1.03 

The following notes relate to the sequential 

numbering defined in Portuguese 

GAAP (POC) for the consolidated financial 

statements. 

1) Companies included in consolidation 

Information about companies included in 

the consolidation, namely name, head office, 

percentage of share capital held and

conditions included in point nº 1 of article 1 

of DL 238/92 of July 2 that were met to 

determine the consolidation of the companies, 

presented in Notes 1 and 43. 

2) Companies excluded from consolidation 

Information on companies excluded from 

consolidation is presented in Note 44. 

3) Associated companies 

Information on associated companies is 

presented in Note 45. 

5) Companies included in consolidation 

by the proportional method 

Information of name, head office and percentage 

of share capital held in companies 

fully consolidated is presented in Note 43. 

7) Average number of employees 

The average number of employees employed 

by the Group companies and consolidated, 

whether fully or proportionally is 

presented in Note 38. 

10) Consolidation differences (Goodwill) 

The breakdown and changes of “Consolidation 

differences”, during the year ended 

31 December 2008 is presented in Note 15. 

14) Changes in the consolidation 

scope 

Changes in the consolidation scope are 

described in Note 35. 

15) Consistency in the application of 

accounting policies 

The consolidated financial statements apply 

the accounting policies described in Note 1. 

17) Amortisation of consolidation 

differences 

The amortisation policy of consolidation differences 

is described in Note 1. 

18) Basis of recording investments 

in associated companies 

The method applied by the group to measure 

its investments in associated companies 

is described in Note 1. 

21) Commitments 

The financial commitments of the Group 

not presented in the consolidated balance 

sheet are disclosed in Notes 39 and 40. 

22) Commitments for guarantees 

provided 

The breakdown, by nature, of the commitments 

for guarantees provided is presented 

In Note 39. 

23) Basis of presentation and main 

accounting policies 

The accounting policies applied in the consolidated 

financial statements, including the 

methods used to measure fair value adjustments, 

namely amortizations, adjustments 

and provisions, are described in Note 1. 

24) Balances and transactions 

expressed in foreign currency 

The figures included in consolidated financial 

statements that were originally expressed 

in foreign currencies and converted to 

Euros, in line with the accounting policies 

presented in Note 1, using the exchange 

rates disclosed in Note 42. 

27) Movements in fixed assets 

The movements in fixed assets and respective 

amortizations and adjustments are presented 

in Notes 15, 16, 17, 18 e 19 e 24. 

32) Movements of current assets 

adjustments 

The movements in current assets adjustments 

accounts are described in Note 24. 

33) Long term liabilities 

The liabilities payable in more than five years 

are disclosed in Note 30. 

36) Segmental information 

Segmental information is disclosed in 

Note 4. 

38) Income tax 

The breakdown of income tax, including the 

effective income tax reconciliation, is presented 

in Note 11. 

The movements in deferred tax assets 

and liabilities are presented in Note 27. 

39) Board members remunerations 

The remunerations attributed to the members 

of the Board of Directors are disclosed 

in Note 6. 

41) Revaluations – Legal framework 

During the course of the year none of the 

companies included in the consolidation 

scope undertook fixed asset or investment 

revaluations. Thus, there was no need to 

use any legal diploma. Legal diplomas in 

which revaluations made in previous years 

were based are disclosed in Note 17. 

42) Revaluations of fixed assets and 

financial investments 

The fixed asset revaluations undertaken in 

previous years are disclosed in Note 17. 

44) Financial results 

The financial results are presented in 

Note 10. 

45) Extraordinary results 

The extraordinary results are presented in 

Notes 7 and 8. 

46) Movements in provisions 

The movements in provisions in the year 

ended 31 December 2008 are disclosed in 

Note 29. 

47) Finance leases 

The assets held under finance lease agreements 

are presented in Note 30. 

50) Other relevant information 

Additional information relevant to fully 

understand the financial position and results 

of all companies consolidated are presented 

in the respective notes to the consolidated 

Financial Statements. 

BOARD OF DIRECTORS 

114 | 115 

ANNUAL REPORT 

SECIL 2008 

PRESIDENT 


MEMBERS 

Carlos Eduardo Coelho Alves 

Francisco José Melo e Castro Guedes 

Carlos Alberto Medeiros Abreu 

Sérgio Alves Martins 

Gonçalo de Castro Salazar Leite 

João Vendeirinho Almeida 

Anthony Creedon 

Jim Mintern 




Henry Morris 



Mário José de Matos Valadas

Sustainability Report 

Common Name: Orchid 

Scientific Name: Ophris tenthredinifera

Common Name: Rue 

Scientific Name: Ruta chapensis 

Sustainability Report 

1 This Report 2 About Secil 3 Economic Performance 

4 Environmental Performance 5 Social Performance 

116 | 117 

ANNUAL REPORT 

SECIL 2008

The Secil Executive Committee 

decided that the 

publication of the full 

Sustainability Report, referring 

the experience of 

sustainability included in 

the strategy of the national 

cement group and its 

contribution towards the 

sustainable development 

of the communities in 

which it is comprised, 

should have a two year 

cycle, with Intermediate 

Sustainability Reports 

published in the intervening 

years. 

This report is thus the 

first edition of the Intermediate 

Sustainability 

Report, which shows the 

main facts and results 

occurred in 2008, of the 

three cement production 

units operating in Portugal 

– Outão, Maceira 

and Pataias. 

Should further details 

of our activity be required, these are available 

from our website (www.secil.pt). 

We would be grateful and in effect encourage 

your feedback. Our feeling is that 

through dialogue and exchange of ideas 

we can achieve greater levels of excellence 

both in the case of business and in the 

defence of the interests of our stakeholders. 

1. This Report 

Common Name: Salvia Cistus 

Scientific Name: Cistus salvifolius 

Contact: 

SECIL – Companhia Geral de Cal e Cimento, SA 

Eng. José Bravo Ferreira 

Sustainability Departmental Manager, 

External Programmes and Initiatives 

Outão Works – Apartado 71 

2901-864 Setúbal 

E-mail: bravo.ferreira@secil.pt

13% 

Tunisia 

12% 

Lebanon 

10% 

Angola 

65% 

Portugal 

Portugal 

Cement Production: 3 317 kt 

Turnover: 315 M€ 

682 Employees 

THE 3 CEMENT PRODUCTION 

UNITS IN PORTUGAL, INCLUDED 

IN THIS REPORT, ARE 

REPRESENTATIVE OF 

APPROXIMATELY 65 % OF THE 

TURNOVER OF THE CEMENT 

GROUP 

2. About Secil 

Angola 

Cement Production: 367 kt 


284 Employees 

Tunisia 

Cement Production: 1 236 kt 


345 Employees 

118 | 119 

ANNUAL REPORT 

SECIL 2008 

Lebanon 

Cement Production: 989 kt 


413 Employees

2. SUSTAINABILITY AND SECIL 

Our permanent challenge is to guarantee 

that all our activities are sustainedly developed, 

with an acceptable return on capital 

invested, safeguard of the environment 

and compliance with our social duties, 

ensuring the future continuity of our business 

activity. 

Our strategy for sustainability is in line 

with the values of Excellence, Responsibility, 

Quality, Innovation and Transparency which 

have been characteristic of our company 

for many years and is based upon 3 pillars: 

COMPETITIVENESS 

Development of technological capability, 

with the objective of optimizing productive 

processes and respective support systems, 

comprising the best available technology. 

Innovation in the quality of SECIL products, 

services and solutions supplied to Customers, 

exceeding expectations as to the 

added value supplied, in order that we become 

their preferred partner. Positioning in a 

global world, taking advantage of international 

business opportunities. 

MINIMIZATION OF IMPACTS 

Maximize the eco-efficiency of our processes, 

minimizing the impacts caused on the 

environment and guiding actions towards 

the promotion of biodiversity. 

INVOLVEMENT WITH 

STAKEHOLDERS 

Develop a working environment valued by 

our Employees and consolidate an ethical 

and civic positioning recognized by the stakeholders. 

2. About Secil 

OUR STAKEHOLDERS 

Our stakeholders are all the people and 

groups who influence or may be affected 

by our activity. They are, as such, 

the fundamental link in the achievement 

of the prime objective of our sustainability 

strategy of “guaranteeing that the 

sum total of our activities are sustainedly 

developed with an adequate 

return on capital invested, safeguard 

of the environment and 

compliance with our social 

duties, ensuring the 

future continuity of 

our activity”, as 

r eferred 

above. 

EMPLOYEES 

AND THEIR FAMILIES 

COMMUNITIES 

LOCAL COMMUNITY, LOCAL AUTHORITIES, 

LOCAL ASSOCIATIONS 

BUSINESS PARTNERS 

CUSTOMERS, SHAREHOLDERS, DISTRIBUTORS, SUPPLIERS 

SOCIETY 

GOVERNMENTAL BODIES, NON-GOVERNMENTAL BODIES 

MEDIA, UNIVERSITIES AND SCHOOLS 

Throughout the years we have developed 

several channels of communication 

with the various groups of stakeholders 

in order to understand their expectations 

and fears so that, jointly, we may 

achieve the objectives laid out. Instances 

of these communication channels 

are Environmental Tracking 

Committees, Customer Support Centre 

and Tracking Committees for Safety 

and Health at Work Management 

Systems.

Following are the main economic and financial 

indicators. 

3. Economic 

Performance 

120 | 121 

ANNUAL REPORT 

SECIL 2008 

Key economic 

and financial indicators Un 2004 2005 2006 2007 2008 

Net assets M€ 962 1 067 921 924 955 

Shareholder’s Equity M€ 313 353 359 362 393 

EBITDA M€ 105 114 104 89 99 

Net investment (a) M€ 20 38 - - - 

Capex (a) M€ - - 15 22 22 

Financial liabilities M€ 403 443 419 412 403 

Return on assets % 5,8 5,4 6,3 5,4 6,6 

Return on Shareholder’s Equity % 17,9 16,4 16,2 13,8 16,0 

Net profits M€ 56 58 58 50 63 

Turnover M€ 261 267 270 285 312 

Sales of Cement and Clinker 10 3 t 3 906 3 736 3 818 3 896 3 908 

Portugal 10 3 t 3 423 3 330 2 993 2 938 3 003 

Grey Cement 10 3 t 3 325 3 244 2 896 2 850 2 837 

White Cement 10 3 t 74 86 90 88 80 

Clinker 10 3 t 24 0 7 0 86 

Abroad 10 3 t 483 406 825 958 905 

Grey Cement 10 3 t 266 225 482 588 392 

White Cement 10 3 t 0 0 0 12 20 

Clinker 10 3 t 216 181 343 358 493 

Sales of Cement and Clinker 10 3 € 247 514 249 641 247 314 256 347 277 126 

Portugal 10 3 € 232 939 231 442 211 057 209 746 228 946 

Grey Cement 10 3 € 223 559 221 908 200 588 199 690 214 410 

White Cement 10 3 € 8 120 9 534 10 056 10 056 9 621 

Clinker 10 3 € 1 260 0 414 0 4 915 

Abroad 10 3 € 14 575 18 199 36 257 46 601 48 180 

Grey Cement 10 3 € 9 555 10 192 20 593 28 645 21 863 

White Cement 10 3 € 34 32 52 989 1 577 

Clinker 10 3 € 4 985 7 975 15 613 16 967 24 740 

(a) The net investment indicator is no longer available; only Capex is now disclosed. 

Global sales of cement and clinker reached 

3.9 million tons, the same volume as 

achieved in 2007, but with an 8% increase 

in value. 

In spite of the regression in the home 

market sales in this market increased 

by 2%. 

White cement sales fell by 9% relative to 

2007 due to lower demand. 

Sales in the external market were 905 

000 tons, 6% lower than in the previous 

year. Exports of white cement at 20 000 

tons deserve being highlighted. 

The good performance of the Portugal- 

Cement business unit was achieved in spite 

of the very significant increase in fuel 

prices and sea freight and is essentially 

owed to the increase in price of the different 

types of cement, to the intensifying in the 

use of alternative fuels, to the relevant reduction 

in the rate of clinker incorporation and 

to tight cost control. In effect, EBITDA increased 

by 11% and rose to 99 M€.

3.1 CASH FLOWS WITH 

OUR STAKEHOLDERS 

Our direct impacts include sales of cement 

and clinker; wages and benefits paid 

to our Employees; donations to associations 

and bodies of the communities 

surrounding the manufacturing facilities; 

profits distributed to our shareholders; 

taxes paid to local authorities and the 

State. The following picture shows the 

value of these same impacts in 2008. 

CUSTOMERS 

ASSOCIATIONS 

STATE & 

LOCAL AUTHORITIES 

3. Economic 

Performance 

STATE & LOCAL 

AUTHORITIES 

OTHER 

OPERATING 

INCOME 

626 258 € 

TOTAL INCOME 

366 026 344 € 

CUSTOMERS 

SALES 

365 400 086 € 

WAGES 

22 198 157 € 

PATRONAGE 

OF THE ARTS 

701 909 € 

TAXES 

2 152 814 € 

TOTAL PAYMENTS 

296 185 854 € 

BALANCE FOR THE COMPANY 

DIVIDENDS 

27 463 774 € 

INTEREST 

4 406 421 € 

PAYMENTS 

239 262 779 € 

69 840 490 € 

STOCKHOLDERS 

BANKING 

INSTITUTIONS 

SUPPLIERS 

TOTAL AVAILABLE FOR 

INVESTMENT 

22 328 569 € 

SHARE 

PREMIUMS 

- 

NET 

REFINANCING 

47 511 921 € 

FINANCIAL 

INVESTMENTS 

19 891 084 € 

BUSINESS 

INVESTMENTS 

21 111 508 €

4. ENVIRONMENTAL PERFORMANCE 

Cement production requires the use of 

raw materials and energy and implies the 

emission of polluting agents into the 

atmosphere. The knowledge that in addition 

to being generators of wealth we are 

also users of natural resources renders 

eco-efficiency and absolute priority for us 

4. Environmental 

Performance 

all. Produce more with less resources is 

one of the bases, not only of sustainable 

development, but equally of our business. 

As such, we are committed to carry 

out our business within a framework of 

sustainable development, targeting progress 

which is compatible with achie- 

122 | 123 

ANNUAL REPORT 

SECIL 2008 

ving increasing levels of sustainable 

development. 

Following are the main indicators of 

environmental performance. For further 

information on this subject please see the 

Environmental Declarations of the three 

manufacturing units www.secil.pt. 

Environmental key indicators Un 2004 2005 2006 2007 2008 

Materials used 

Prime raw materials kt 5 988 5 699 5 906 5 772 6 130 

Secondary raw materials kt 180 214 393 223 178 

Rate of use of secondary raw materials % 2,9 3,6 6,2 3,7 2,8 

Energy used 

Thermal energy TJ 10 041 11 081 11 612 12 155 11 015 

Electrical energy GWh 362 384 426 404 403 

Fuel used 

Fossil fuels 

(petroleum oil coke, coal, fuel oil,, diesel oil and LPG) kt 302 301 306 350 301 

Alternative fuels 

(tire chips, rdf, fluff, animal biomass and vegetable biomass) kt 25,7 57,2 73,4 84,0 93,0 

Rate of replacement % 5,7 10,7 12,4 13,7 15,4 

Atmospheric Emissions 

Particles kt 0,108 0,046 0,045 0,029 0,018 

NOx kt 6,8 5,9 5,9 5,0 5,2 

SOx kt 0,9 0,7 0,8 0,7 0,5 

CO 2 Mt 2,7 2,6 2,6 2,6 2,6 

Water use 

Own underground catchments 10 3 m 3 1 396 1 130 1 317 1 171 1 112 

Biodiversity 

Manufacturing Facilities with Plan 

for Landscape Recovery of Quarries % 100 100 100 100 100 

Waste 

Total waste produced kt 8,5 6,9 19,4 11,5 8,0 

Final destination of waste produced 

Internal upgrading % 36 55 18 34 46 

External upgrading % 43 28 70 20 14 

External disposal % 20 17 11 46 40 

Transport 

Home market 

Rail % 19 18 20 18 18 

Road % 66 52 51 51 53 

Sea % 15 30 29 31 29 

External 

Rail % - 0 0 0 0 

Road % - 0,1 2 0 0 

Sea % - 99,9 98 100 100

8,3% 

4.1 CLIMATIC RESPONSIBILITY 

Answering the challenge of climatic change 

we have been developing a number of measures 

in order to diminish specific CO 2 emissions. 

These measures include the reduction 

of the rate of incorporation of clinker required 

for cement manufacture, through the 

use of alternative fuels and of decarbonised 

raw materials and also by reducing specific 

thermal use. 

4.1.1 RATE OF CLINKER 

INCORPORATION 

Installing mixers in the cement mills of 

the three manufacturing units, in 

2007, allowed surpassing the global 

objective of 76% clinker incorporation 

set for 2008. The mixers allow the 

increase of the proportion of additives 

in the compounded cements, thus 

contributing towards lowering the rate 

of clinker incorporation. 

By lowering the rate of clinker 

incorporation, the CO 2 specific emission 

factor per tonne of cement product 

diminished to 650 kgCO 2 /t of 

cement product, thus showing a 12% 

reduction relative to the 1990 value 

(objective: achieve until 2015 a 15% 

reduction relative to 1990). 

4.1.2 UPGRADING OF WASTE 

AS ALTERNATIVE FUEL 

The development of the use of 

alternative fuels such as WDF 

(waste derived fuels), Fluff, Used 

Tires, Animal Biomass and Vegetable 

Biomass has allowed the 

reduction of the specific factor of 

78,1% 

CO2 combustion emission per 

tonne 75,6% of clinker produced. Such is 

owed to the fact that these fuels 74,4% 

have lower emission factors to 

those of fossil fuels, and biomass 

has a 0 emission factor. 

76% 

The 16% objective for the global 

replacement of fossil fuels by 

alternative fuels was almost achie- 

2006 2007 2008 

ved, although the conditions of 

Global use rate of incorporation 

alternative fuels in the 

Objective Maceira-Liz Facility in 2008 were 

not attained (with the exception 

of used tires) as had been expected. 

Rate of clinker incorporation (%) 

Rate of replacement (%) 

1600 

1400 


Performance 

85,0% 

83,0% 

81,0% 

79,0% 

77,0% 

75,0% 

73,0% 

71,0% 

69,0% 

67,0% 

65,0% 

25% 

20% 

15% 

10% 

5% 

0% 

800 

700 

600 

500 

400 

300 

200 

1396 

100 

78,3% 

75,6% 

78,1% 

2004 2005 2006 2007 2008 

Secil-Outão 

Maceira-Liz 

Cibra-Pataias 

726 

1,7 1,6 1,9 

2,2 3,0 5,1 

Global rate of incorporation 

Objective 

3% 

REPLACEMENT RATE OF ALTERNATIVE FUELS AND SPECIFIC CO2 COMBUSTION EMISSION PER TONNE OF CLINKER 

312 

79,5% 

5,7% 

97% 

Prime Raw Materials 

Secondary Raw Materials 

698 688 695 682 

0,7 

8,5 

96,1 95,4 93,0 90,8 91,9 

1317 

10,7% 

12,4% 

0,9 

7,2 

13,7% 

140 

120 

100 

80 

60 

40 

20 

76% 

74,4% 

2004 2005 2006 2007 2008 


Maceira-Liz 

Cibra-Pataias 

320 326 325 

Global replacement rate 

Global objective 

kgCO /t clinker 

2 

316 

15,4% 

16% 

1600 

340 

1400 

1200 320 

1000 

300 

800 

600 280 

400 

260 

200 

240 0 

220 

200 

kgCO2/t clinker 

800 

700 

600 

500 

400 

300 

200 

COT 

100 

25% 

20% 

15% 

10% 

5% 

0% 

920 

900 

880 

860 

840 

820 

1396 

800 

2004 

780 

760 

740 

2003 

38 

591 

3 

S 

M 

C 

79

4.1.3 ENERGY EFFICIENCY 

Similarly to what has been the case 

since 2006, energy use has continued 

to fall in 2008. 

With respect to the use of thermal 

energy, the fall in the specific 

factor is related to the increase 

in plant efficiency, especially due 

to the investments in the Pataias 

Plant and with the use, in this 

same facility, of clay containing mineralizing 

components, inducing 

lower clinkering temperatures. On 

the other hand, the 

development in the 

quality of managing 

the facilities with the 

upgrading of waste for 

energy production, has 

allowed the recovery 

of this indicator. 

The increase in the 

326 specific 325factor 

of electrical 

energy is related 

to the increased use 

relative to 13,7% the prepa- 

12,4% ration and feeder plant 

of alternative fuels 

and, also, to the increase 

in the proportion 

of cements with higher 

resistance (+1.8% 

in grey cement and 

+2.7% in white cement), 

which demand greater 

energy in the milling 

obal replacement operation. rate 

obal objective 

CO /t clinker 

2006 2007 2008 

2 

867 

1112 

2005 2006 2007 2008 2009 

2008 

CO 

911 

896 

316 

15,4% 

16% 

881 

HCI 

340 

320 

300 

280 

260 

240 

220 

200 

COT 

kcal/kg clinker 

kWh/t cement 

920 

900 

880 

860 

840 

820 

800 

780 

760 

867 

Vegetable Biomass 

used as 

alternative fuel 

740 

2003 2004 2005 2006 2007 2008 2009 

140 

120 

100 

80 

60 

40 

20 

SO2 

VLE 

2008 

Part. 

100 

2006 

2005 

826 

99 

HF 

107 

CO 

0 

2003 2004 2005 2006 2007 2008 2009 

2007 

2004 

NOx 

911 

123 

114 

896 

881 

121 

140 

120 

100 

80 

60 

40 

20 

124 | 125 

ANNUAL REPORT 

SECIL 2008 

99 

0 

2003 2004 2005 200 

45% 

107 

12% 

Internal upgradi 

External upgrad 

Disposal

4.2. ENVIRONMENTAL RE-QUALIFYING 

OF QUARRIES AND PROTECTION OF 

BIODIVERSITY 

The quarries of the three manufacturing 

units have Quarry Plans which have been 

approved and are under way. The Quarry 

Plans, comprising the Excavation Plan and 

the Environmental Plan for Landscape 

Recovery (EPLR), allow simultaneous optimizing 

and rationalizing of the operation, 

85,0% 

providing a harmonious integration of the 

83,0% 

operational areas with their surroundings. 

4.3.1 USE OF PRIME RAW 

81,0% 

79,5% MATERIALS 

78,3% 

78,1% 

After the conclusion 79,0% of the first stage of The reduction in the use of prime raw 

the Study and Upgrading 77,0% of Biodiversity, materials is more than 75,6% ever derived from 

Fauna Component (February 2007 to May the use of secondary raw materials. 

75,0% 

2008), which consisted of the preparation of Following the commitment undertaken in 

73,0% 

a diagnosis of the fauna communities in the our Environmental Policy to – “collabora- 

territory of Secil-Outão, 71,0% comparing different te with the authorities and other industries 

stages of landscape recovery 69,0% in natural are- to reduce and upgrade waste materials, 

as, an Action Plan was 67,0% set up with the objec- incorporating these in production whenetive 

to manage and develop the value of ver this results in a more favourable envi- 

65,0% 

the fauna, in connection with the EPLR for ronmental treatment compatible with 

the Secil-Outão territory. 

quality of processes and products” – we 

Secil-Outão have received Global waste rate from of incorporation 

other industries, 

The Action Plan determines a Maceira-Liz proactive upgrading this Objective in the processes as secon- 

management strategy based on Cibra-Pataias 

the impledary raw materials. 

mentation of actions to 

enhance the occurrence USE OF RESOURCES 

of a greater and more 

diversified number of 

3% 

native species and includes 

actions to be developed 

within a 26 month 

period, between November 

2008 and December 

2010. 

The implementation 

of definite actions on 

site for the development 

of biodiversity, determined 

in the Action Plan, 

embraces a wide spectrum 

of measures directed 

towards a large 

number of groups/species, 

divided into six 

groups: environmental 

sensitizing and communication; 

monitoring; wild life control; vegetation 

management; development/recovery 

of shelters for the fauna; increase of hydro 

availability. 

800 

700 

600 

500 


Performance 

The Study and Upgrading of Biodiversity, 

Fauna Component, in the Maceira-Liz 

and Cibra-Pataias Plants, is in its 

final stages, to be completed in May 2009 

and its objective is to characterize and 

assess the level of occupation of the fauna 

communities associated to the different 

habitats. 

4.3. USE OF RESOURCES 

2004 2005 2006 2007 2008 

726 

97% 

Prime Raw Materials 


However, the rate of use of secondary raw 

materials has not been very high, since this 

depends upon their availability in the market. 

The usage rate in 2008 was only 3%. 

698 688 695 682 

1,7 1,6 1,9 

2,2 3,0 5,1 

0,7 

8,5 

0,9 

7,2 

140 

120 

100 

76% 

74,4% 

1600 

1400 

1200 

1000 

800 

600 

400 

200 

0 

800 

700 

600 

500 

25% 

20% 

15% 

10% 

5% 

0% 

1396 

5,7% 

2004 2005 


Maceira-Liz 

Cibra-Pataias 

1130 

1317 

10,7% 

1171 

2004 2005 2006 200 

38 

312 

6 

79 

37 

84 

7 

35 

320 

84 

8 

3 

G

75,6% 

2006 2007 2008 

al rate of incorporation 

ctive 

4.3.2 USE OF HYDRO 

RESOURCES 

As can be seen in the 

adjoining graph, the 

use of water has been 

diminishing. This reduction 

is owed, on the one 

hand, to the fact that 

2008 was a year with 

heavy rains, lowering 

the needs for watering 

of the landscape recovery 

and, on the other 

hand, due to the investments 

carried out in 

the improvement of the 

closed circuit refrigeration 

systems in the 

Cibra-Pataias 340 and Maceira-Liz 

Plants. 

06 2007 2008 

0 

76% 

74,4% 

1600 

1400 

1200 

1000 

800 

600 

400 

200 

0 

15% 

10% 

5% 

0% 

1396 

1317 

1130 1171 

1112 

2004 2005 2006 2007 2008 

1,4 

1,2 

1,0 

0,8 

0,6 45% 45% 43% 

43% 

0,4 

0,2 

0,0 

5,7% 

10,7% 

12,4% 

2004 2005 2006 2007 2008 

13,7% 

2004 2005 2006 2007 2008 


Maceira-Liz 

Cibra-Pataias 



kgCO 2/t 

clinker 

15,4% 

16% 

HCI 

280 

126 | 127 

ANNUAL 260 840 

REPORT 

SECIL 2008 

240 

220 

200 

COT 

880 

860 

820 

800 

780 

760 

740 

2003 2004 

316 

320 

920 

911 

911 

300 900 

896 

896 

15,4% 

16% 4.4. ATMOSPHERIC 140 880 EMISSIONS 881800 

4.5. 140 WASTE PRODUCTION 

881 

140 

695 280 

682 The plants 867 

867 

6 

123 

860have 

several means of 

120 

700con 

Waste 120 produced 7 is collected 8 120 and stored 8 by 8 

79 

trol 0,9 

600 38 

84 84 

89 

260 of these 840 emissions, specifically fil- type 100 in specific locations 107and 

100 delivered to96 

0,7 

100 

37 

8,5 7,2 

35 

35 

114 

826ter 

sleeves and burners 826with 

low emis- operators licensed 99 

35 99 

820 

500 

80 

for its management, 80 with 

sions 240of 

80 NOx. 800 Secil guarantees compl- preference 60 given to upgrading 60 solutions as 

400 

90,8 91,9 ying with 591 559 548 558 543 

60 780 its emission values with res- against 40 pure and simple disposal. 40 

220 

300 

pect to the 760 legally imposed limitations, 20 

20 

40 

200 

and 200 the 740 progressive lowering of its 0In 

2008, 60% of waste produced 0 was 

2004 2008 emissions 2005 202006 

2003 is related 2007 2004 to the 2008 2005 use of 100 alter- 2009 2006 upgraded, 2007 2003 2008 either 2004 for 2009 energy 2005 production 2006 2003 or 2007 2004 for 

native fuels. 

0 material recovery. 

121 

107 

2008 2005 

123 

2009 2006 

114 

2007 

160 

140 720 

121 

120 

100 

80 

60 

40 

31 

20 2008 2009 

17 

0 

703 

54 

27 

2007 2008 

2004 2005 2006 2007 2008 

2004 2005 

Term contract 

ATMOSPHERIC EMISSIONS 

Total number of employees 

Part. 

100 

2006 

2005 

HCI 

HF 

COT CO 

2007 

2004 

160 

NOx 

SO2 

VLE 

2008 

Part. 

100 

2006 

2005 

10 3 

m 3 

/water 

HF 

CO 

2007 

2004 

USE OF WATER 

NOx 

Male 

WASTE PRODUCTION 

Males in Management 

12% 

Internal upgrading 

External upgrading 

Disposal 

Female 

Females in Management 

12% 

Internal upgrading 

External upgrading 

Disposal 

SO2 

VLE 

2008 

60,0 

50,0 

40,0 

30,0 

20,0 

10,0 

0,0 

Part. 

100 

Admissions 

Departures 

2006 

2005 

2004 

826

5. SOCIAL 

PERFORMANCE 

Our Employees are the 

main factor which allows 

our competitive position 

in the market, and 

as such we are constantly 

giving value to their 

efforts and dedication, 

through the recognition 

of their performance and 

by providing opportunities 

for development within 

the Group. 

The involvement of 

them all in achieving the 

company’s strategic objectives 

is thus essential 

for the development of 

an ever greater sustainable 

business. 

Following are the 

main social indicators. 

5. Social Performance 

Social key indicators 2004 2005 2006 2007 2008 

Employment and labour relations 

Number of Employees 

(effective and under contract) n.º 714 687 675 690 682 

Type of contract 

Permanent contract % 96,14 95,42 93,02 90,79 91,94 

Term contract % 2,20 3,01 5,09 8,49 7,18 

Temporary assignment % 1,65 1,58 1,89 0,72 0,88 

Gender 

Male % 88 87 86 86 85 

Female % 12 13 14 14 15 

Average age Years 47,95 47,70 48,10 47,15 47,20 

Rate of rotation % 3,3 5,8 2,7 4,2 3,7 

Rate of absenteeism % 5,20 5,54 5,44 5,62 5,20 

Union members % 67,93 64,77 62,96 58,70 56,89 

Training 

Total training hours per annum h 2 808 3 519 6 049 6 455 5 174 

Health and Safety 

Severity index (Ig) % 0,43 1,03 0,33 0,84 0,68 

Frequency index (If) % 10,08 25,25 13,50 16,87 21,34 

Duration index or severity assessment (id) % 42,58 40,62 24,30 50,06 31,67

2006 2007 2008 

al rate of incorporation 

ctive 

326 325 

316 

320 Prime Raw Materials 

920 

Secondary Raw Materials 911 

13,7% 

15,4% 

16% 

300 900 

880 

896 

881 

12,4% 

280 

860 

867 

TYPE OF CONTRACT 

1600 260 840 

1396 

826 

820 

1400 

1317 

800240 

726 800 

1200 

1130698 688 

700 

780 

1000 220 

600 

1,7 1,6 

2,2 760 3,0 5,1 

800500 

200 740 

1171695 

1112 682 

1,9 

0,9 

0,7 

8,5 7,2 

% 

140 

120 

100 

80 

2006 2007 2008 600400 

400 

300 

200 

200 

100 

0 

0 

2003 

96,1 

2004 

2004 

2004 2005 2006 2007 

95,4 93,0 90,8 91,9 

2005 2006 2007 2008 

2005 2006 2007 2008 

2008 

60 

40 

20 

2009 

5.1. 

CHARACTERIZATION 

OF HUMAN 

RESOURCES 

Simultaneously with the 

policy of rationalization of 

human resources, the procedure 

for the recruitment 

of qualified personnel was 


followed, whereby sevente- 


en effective Employees were 

kgCO 2/t 

clinker 

admitted. In December, the 

number of Employees totalled 

682 persons, 4 effective 

Employees less 

than in 2007. 

71695 

1112682 

0,7 

8,5 

90,8 91,9 

07 2008 

2007 2008 

35 

Of the 682 workers, 

approximately 92% of the 

Employees are effective, 7% 

are working under term con- 

140 

tracts and 1% are under 

120 

temporary assignment. 

0,9 

7,2 

100 

The majority 80 of Employees 

are male, a trend e- 

60 

qually found in management 

levels, where 40 female employees 

number 20 17%. 

The average age of Employees, 

in 2008, was 47.2 

Term contract years. 

Total number of employees 

Rate of rotation in 2008 

was 3.4%, less than that 

recorded in the previous 

year. This lower rate is justified 

by the low number of 

admissions and departures. 

89 

8 

35 Considering the high 

proportion of effective Employees 

and the minute 

rate of rotation it may be 

concluded that we offer 

our Employees a sense of 

security in work, not only 

because of the Group’s 

stability, but also due to the 

Female benefits, the perks and the 

Females organizational in Management climate. 

558 543 

96 

06 2007 2008 

2007 2008 

8 

10% 

5% 

0% 

Permanent contract Term contract 

Temporary assignment Total number of employees 

N.º EMPLOYEES, BY GENDER 

30,0 

COT 

CO 

800 25,0 

700 

600 

500 

6 

20,0 79 

38 

15,0 

37 

7 

84 

35 

8 

84 

35 

NOx 

10,0 591 559 548 558 543 

5,0 


97% Global objective 

kgCO 2/t 

clinker 

0,0 

SO2 

2004 

2004 

2005 

2005 HF 

2006 

2006 

2007 

2007 

2008 

2008 

1,4 

5,7% 

10,7% 

2004 2005 2006 2007 2008 


Maceira-Liz 

Cibra-Pataias 

1,2 

720 

1,0 

0,8 

0,6 

703 690 

688 682 

750 

700 

650 

600 

0,4 

0,2 

31 

0,0 

17 

54 

27 

2004 

17 

20 

2005 

14 

44 

2006 

26 

20 

2007 

550 

500 

450 2008 

2004 2005 2006 2007 2008 

0 

0 

No. of employees 

Admissions / departures 

HCI400 

300 

200 

100 

0 

160 

140 

120 

100 

80 

60 

40 

20 

340 

0 

Part. 

100 

VLE 

Male 

2006 2007 

2008 Males in Management 

2005 2004 

AVERAGE NUMBERS 

Admissions 

Departures 

60,0 

50,0 

40,0 

89 

8 

35 

96 

Female 

Females in Management 

8 

Average numbers 


1600 

1400 

1200 

1000 

140 

120 

800 

600 

400 

200 

128 | 129 

ANNUAL 240 REPORT 800 

SECIL 2008 

0 

260 840 

1396 

820 

200 

100 

220 

200 

0 

780 

760 

1130 

740 

2003 2004 

826 

1 

2004 2005 20 

100 

107 

80 

COT 99 

60 

40 

20 

800 

700 

600 38 

6 

79 

37 

7 

84 

0 

500 

HCI 2003 400 

300 

2004 

591 

2005 

559 

160 

140 

120 

45% 

100 

80 

60 

40 

20 

0 

SO2 2004 2005 

VLEMale 

2006 

2008 Males in 2005 Manage 

1,4 

1,2 

720 

1,0 

0,8 

0,6 

0,4 

Part. 

100 

0,2 

31 

0,0 

27 

17 

2004 

2004 2005 12% 

60,0 

50,0 

40,0 

30,0 

20,0 

10,0 

0,0 

703 

54 

Admissions Internal upgr 

Departures External upg 

Disposal 

2004

5.2. TRAINING AND EDUCATION 

Our belief is that the success in achieving 

sustainability in our business is directly related 

with the quality and levels of excellence 

of the performance of our Employees. 

In this context, we endeavour to guarantee 

the acquisition/development of 

technical and management skills by our 

Employees. 

In 2008 the following Training Programmes 

should be highlighted: 

■ Start of level I of the Staff Training Programme 

with 2 actions totalling 30,700 

hours of Training; 

■ Launching of the Training Programme for 

Process Worker in the Maceira-Liz and 

Cibra-Pataias Plants, totalling 7,000 hours 

of Training and a Training group on a course 

in Mechatronics; 

■ Continuing the Reception Programme 

with the involvement of 38 Employees; 

■ Launching of the “Campus Secil – Executive 

Management Development” Programme, 

involving 35 participants from 

several Group companies; 

■ Launching of the 1st 

edition of the “Trainees 

Secil” Programme, for 

which 9 recent graduates 

in the areas 

Chemical, Mechanical, 

Civil and Industrial 

Management Engineering 

were recruited. 

Additionally 2 thematic 

seminars on “Alternative 

Fuels” and “Process 

and Quality” were 

organized, in which approximately 

100 trainees 

(internal and external) 

took part, as well as a 

further seminar covering 

the theme “Study of Environmental 

Impact – Coincineration 

of Hazar- 


dous Waste” in which approximately 120 

Employees were involved. 

For 2009 we expect to continue with 

level I Staff, Process Worker in the three 

Plants, the Leadership Programme in the 

Secil-Outão Plant, the launching of the 2nd 

edition of the “Trainees SECIL” Programme 

and carrying out two thematic seminars 

(Maintenance Seminar and Environment, 

Safety and Biodiversity). 

Common Name: Fox 

Scientific Name: Vulpes vulpes

2007 2008 

2004 2005 2006 2007 2008 

1200 

2003 

1130 

2004 2005 

340 

1000 

incorporation 325 

13,7% 

% 

316 

15,4% 

16% 

320 

300 

280 

920 

900 

880 

860 


Maceira-Liz 

Cibra-Pataias 



kgCO 911 

2/t 

clinker 

896 

881 

97% 

867 

140 

120 

800 

600 

400 

200 

130 | 131 

ANNUAL REPORT 

SECIL 2008 

123 

260 840 

820 

826 

100 

80 

0 

2004 

99 

107 

2005 

Part. 

2006 1 

240 

800 Prime Raw Materials 

60 

100 

220 

1600 

1400200 

780 

760 

1396 

740 


1317 

40 

20 

0 

COT 

C 

2007 2008 

1200 

2003 2004 

1130 

2005 1171 2006 2007 

1112 

2008 2009 2003 2004 2005 2006 20 

cement rate 

1000 

ctive 

ker 

800 800 726 

140 

698 688 695 

5.3. EMPLOYEE HEALTH AND 700 

682 

600 SAFETY A number of actions were launched 120 

Safety and health at work (SHW) 600 are stra- 1,7 

1,9 

0,9 

400 

with 1,6 the objective of reducing the acci- 

2,2 3,0 0,7 

5,1 

100 

tegic concerns and a commitment 500 of top dent indices, of which 8,5 the following 7,2 are 

200 

80 

management with the objective 400 to pre- highlighted: intensifying the Inspections 

serve the most valuable 0 

96,1 95,4 93,0 90,8 91,9 

asset of the of the Hygiene and Safety at Work Te- 60 

300 2004 

Group: the people. For this reason wePart. 

2005 2006 2007 2008 

chnician (HST) and changing the con- 

200 

40 

100 

have invested heavily in the improvement tents of the Inspection Reports, in order 

100 

20 

of working conditions, through training to achieve a faster execution of the pro- 

0 

and information of our Employees and posed improvement actions; commence 

COT 

2004 2005 2006 CO 2007 2008 

through the implementation of safe wor- full time following up by an HST techni- 

800 

6 

700 

7 

ges, in order to HCI check compliance 79 with 

600 38 

84 

HST Standards by internal and external 

84 

37 35 

Employees; training 500 actions on SHST Best 

Practices amongst other 400 Training/Sensitizing 

591 559 548 

actions on the same 300 theme. 

SO2 

HF 

200 

100 VLE 2006 2007 

0 2008 2005 2004 

2004 2005 2006 

king practices. 

Permanent cian, contract during the programmed Term contract stoppa- 

Male 

Temporary assignment Total number of employees 45% 

Males in Management 

160 

682 

0,9 

7,2 

91,9 

5.3.1 OUR 

140 

800 

PERFORMANCE HCI 

In 120 

700 

2008, no fatal working 

accident occurred, neither 600 

100 

was any occupational di500 

80 

sease declared. 

400 

60 

300 

NUMBER OF ACCIDENTS THAT RESULTED IN SICK LEAVE (N), 

6PER 

MILLION MAN HOURS NOx (h. H) 

7 

8 

8 

8 

30,0 79 

38 

84 84 

89 96 

37 35 

35 

35 

25,0 

591 20,0 559 548 558 543 

SO2 

HF 

140 

120 

100 

80 

60 

720 

1,4 

1,2 

1,0 

0,8 

703 

54 

12% 

690 

2008 

40 With respect to acci200 

dent 20 indices, 24 working100 

accidents and 760 hours 

0 

of lost work were recorded, 

resulting in an incre- 

15,0 

VLE 

2008 

10,0 

2004 

5,0 

2006 

2005 

2005 

2007 

2004 

2006 2007 2008 

40 

20 

0 

31 0,6 Internal upgrading17 

0,4 

27 

17 External upgrading 20 

Disposal 

2004 0,2 2005 2006 

contract ase in the frequency index 

number of and employees a lowering of 160 the 

severity and severity as- 

140 

sessment indices. 

8 

For the purpose of this 120 re- 

96 

port only those accidents 100 

that resulted in absences 80 

in excess of 3 days are 

43 

60 

considered. 

40 

■ The frequency index 20 

increased by 27% relative 

0 

008 to 2007, recording a value 

of 21.3. This increase is 

720 

31 

17 

2004 

Male 0,0 

Female 

Males in 2004 Management 2005 2006 Females 2007 in Management 2008 

NUMBER OF WORKING DAYS LOST (U) PER 750 THOUSAND 

MAN 703 HOURS 690(h.H). 

688 682 

700 

1,4 

650 

1,2 

1,0 

600 

54 

14 

0,8 

550 

17 

26 

0,6 

44 

500 

27 20 

20 

0,4 

450 

2005 2006 2007 2008 

0,2 

0,0 

Admissions 

2004 

Departures 

60,0 

50,0 

40,0 

30,0 

20,0 

10,0 

2005 

directly related to the 

in Management increase in the number of 

007 2008 accidents. 

Admissions 


0,0 

Departures 

2004 2005 2006 2007 2008 

NUMBER OF WORKING DAYS LOST ON AVERAGE 

0,0 

2004 2005 

■ The severity index is 

20% lower than that re 

60,0 

PER ACCIDENT 

corded in 2007, influenced 

by the lower number 

50,0 

of lost days. The value of 40,0 

the severity index is 0.6. 

30,0 

007 2008 

■ The severity assessment 

index is recorded at 

31.6, approximately 37% 

lower than in 2007. 

Frequency index 

0 

0 

Severity index 

Severity Assessment index 

20,0 

10,0 

0,0 

2004 2005 2006 2007 2008

5.4. SECIL AND THE CIVIL SOCIETY 

Secil develops a wide number of public 

relation actions with the civil society by 

providing information concerning its activities 

as well as allocating resources which 

allow the carrying out of projects by civil 

society institutions or organized groups, 

mainly pertaining to the communities surrounding 

the industrial facilities or of occupational 

segments closely related to its 

sector of activity. 

In this context, the Company carried 

out a further edition of the Secil Prize for 

Civil Engineering, which was awarded to 

Eng. José da Mota Freitas during a ceremony 

presided by the Minister of Public 

Works, Eng. Mário Lino, for the project of 

the Holy Trinity Church, in Fátima, as well 

as the Secil Prizes for Universities – 

Architecture and Civil Engineering Competitions, 

awarded to 

finalists in these degrees 

from the Faculty 

of Engineering of Porto 

University, the Air Force 

Academy, the Faculty 

of Science and Technology 

of Lisbon’s Nova 

University, the Lusíada 

University of Lisbon, 

the Lusíada University 

of Porto and Instituto 

Superior Técnico (Faculty 

of Engineering of 

Lisbon University). 

In the field of architecture 

Secil sponsored 

the “Gente da Casa” 

cultural project, produced 

by Architect 

Carlos Gomes, consisting 

of a video documentary, 

an exhibition, 

a catalogue and a number 

of periodical lectures 

on the working 

environment and the 

contribution of a wide 

number of professions 

involved in the construction 

of a building, 

with the actual technicians 

and workers 


intervening in the construction of a villa as 

performers. 

Academically, Secil also sponsored the 

2008 Campaigns of Structural Concrete, 

organized by the Portuguese Group of 

Structural Concrete, which were held in 

Guimarães in November 2008 and the 

homage and commemorative ceremony 

celebrating the 100th anniversary of the 

publication “Essay sur la techtónique de 

L’Arrabida” by the Swiss geologist Paul 

Choffat, an initiative promoted by the 

Department of Earth Sciences of the 

Faculty of Science and Technology of 

Lisbon’s Nova University. 

Secil Prize for Civil Engineering 2007 Awards 

to Eng. José da Mota Freitas 

by the Minister of Public Works, Eng. Mário Lino.

Further to this, in the 

region neighbouring the 

Maceira-Liz and Cibra 

Pataias facilities, assistance 

was provided to a 

wide number of external 

initiatives, and actions of 

approach and partnership 

were carried out with 

the civil society, amongst 

which the following are 

highlighted: 

■ Protocol signed with 

Maceira Parish Council 

with the objective to 

carry out several works 

and refurbishments in 

the public areas with 

materials donated by the 

Secil Group of Companies; 

■ Joint donation, with 

the Maceira Parish 

Council, of the financial 

receipts from the Maceira 

Solidarity concert, 

held in 2007, to two local institutions: the 

Maceira Cultural and Social Academy and 

the Leiria Portuguese Association of 

Cerebral Paralysis; 

■ Donation towards the purchase of a 

medical emergency ambulance for the 

Maceira Volunteer Fire Brigade; 

■ Technical and financial assistance for the 

building of the Municipal Swimming Pool 

Recreational Area, through a tripartite 

Protocol between the Company, Maceira 

Parish Council and Alcobaça County 

Council; 

■ Open Doors Week of Maceira-Liz Works, 

on the occasion of its 85th anniversary, 

held in the month of May, which comprised 

the European Day of Open Doors; this was 

carried out under the aegis of Cembureu – 

European Cement Association, and was 

held on 14 May with the presence of Prof. 

Doctor Humberto Rosa, Secretary of State 

for the Environment; 

■ Sponsorship of the Leiriathletics Sports 

European Day of Open Doors. 

Visit of Secretary of State for the Environment, 

Prof. Dr. Humberto Rosa , Maceira-Liz Pant. 

Week, during which hundreds of Leiria inhabitants 

are invited to practice several sports 

events in urban areas; 

■ Sponsorship of the Leiria Music Festival, 

organized by the Leiria Choral Society. 

In Setúbal, Secil was involved in many initiatives, 

the most relevant of which were: 

■ Assistance towards the building of the 

new Quarters of the Águas de Moura 

Volunteer Fire Brigade; 

■ Financial aid for the refurbishment of the 

sports pavilion of the Setúbal Volunteer Fire 

Brigade; 

■ Signing of cooperation and financing 

protocols with 82 sports, cultural and 

social inclusion associations in the county 

of Setúbal; 

■ Support for cultural and animation activities 

such as Setfesta – in collaboration 

with the Santa Maria da Graça Parish 

Council – festivities of Our Lady of Rosário 

– with the S. Sebastião Parish Council – the 

132 | 133 

ANNUAL REPORT 

SECIL 2008 

Blue Coast Half Marathon 

and festivities of Our 

Lady of Saúde, in Vila 

Fresca de Azeitão, amongst 

numerous other 

activities; 

■ Open Doors Week of 

Secil-Outão Works, in 

which some 600 people 

took part; 

■ Organization of the 

Secil Christmas Card 

Competition, which involved 

600 children from 

the Azeitão 1st Cycle 

Basic Education Schools 

Group; 

■ Environmental and 

social sensitivity action 

with 1500 secondary education 

students, through 

presentations held on 

the ship “Évora”, sailing 

in the Sado estuary; 

■ Multiple student visits, from various 

educational grades as well as other occupational 

groups, to the works facilities; 

■ Sponsorship of 8 concerts of Portuguese 

contemporary music, in the Luísa 

Todi Auditorium, with the presence of 

some of the better known national artists, 

which were seen by thousands of Setúbal 

inhabitants. 

In addition to these professional, academic 

or regional initiatives, the Company 

attended professional exhibitions, such 

as the Tektónica and Concreta Fairs, university 

employment fairs, the Green 

Festival – I Sustainable Company Fair, 

and applied to the Green Project Awards. 

Secil equally contributed towards the 

well being and security of the Portuguese 

military forces taking part in peace maintenance 

operations in the Lebanon, through 

the donation of cement from the Sibline 

Cement Works for the refurbishment and 

reinforcement of the quarters of the sappers 

unit of the Portuguese Army.

Annex 

Secil-Outão Plant Nurseries

Common Name: Butterfly 

Scientific Name: Pyronia cecilia 

Annex 

1 Report and Opinion of the Statury Auditors 

2 Report of Statutory Auditors 3 Group Diagram 

134 | 135 

ANNUAL REPORT 

SECIL 2008

1.REPORT AND OPINION 

OF THE STATUTORY AUDITORS 

(Free Translation from the original in 

Portuguese) 

To the Shareholders 

1. In accordance with the law and our 

mandate, we herewith present the report 

on our supervisory activity and our opinion 

on the Consolidated Directors’ Report 

and the corresponding Consolidated 

Financial Statements Secil – Companhia 

Geral de Cal e Cimento, SA, with respect 

to the year ended December 31, 2008. 

2. During the course of the year, we 

have accompanied the evolution of the 

company’s activities, as and when deemed 

necessary, and have verified the 

timeliness and adequacy of the accounting 

records and supporting documentation. 

We have also ensured that the law 

and the company’s statutes have been 

complied with. 

3. As a consequence of our work, we 

have issued the attached Statutory Audit 

Report. Furthermore we have considered 

the Statutory Auditors’ Report sent to the 

Board of Directors in which the audit procedures 

undertaken are described, as 

required by Article 451º of the Commercial 

Companies Code. 

4. Within the scope of our mandate, 

we have verified that: 

i) the Consolidated Balance Sheet, the 

Consolidated Statements of Income by 

nature and by functions, the Consolidated 

Cash Flow Statement and the corresponding 

Notes to the accounts present adequately 

the financial position, the results 

and cash flows of the company; 

ii) the accounting policies and valuation 

methods applied are appropriate; 

iii) the Consolidated Directors’ Report is 

1. Report and Opinion of the 

Statutory Auditor 

sufficiently clear as to the evolution of the 

business and the position of the company 

and highlights the more significant 

aspects; 

5. On this basis, and taking into account 

the information obtained from 

Board of Directors and the company’s 

employees, together with the conclusions 

in the Statutory Audit Report, we are of the 

opinion that: 

i) the Consolidated Directors’ Report be 

approved; 

ii) the Financial Statements be approved; 

Lisbon, March 6, 2009 

PricewaterhouseCoopers & Associados, 

SROC, Lda 

represented by: 

Abdul Nasser Abdul Sattar, R.O.C.

2.REPORT OF STATUTORY 

AUDITORS 

(Free Translation from the original in 

Portuguese) 

Introduction 

1. We have audited the consolidated 

financial statements of Secil – Companhia 

Geral de Cal e Cimento, SA, comprising the 

consolidated balance sheet as at 

December 31, 2008, (which shows total 

assets of €860 388 568 and total shareholder's 

equity of €393 197 494, including a 

net profit of €62 776 790), the consolidated 

statements of income by nature and by 

functions and the consolidated cash flow 

statement for the year then ended and the 

corresponding notes to the accounts. 

Responsibilities 

2. It is the responsibility of the Company’s 

Management to prepare consolidated 

financial statements which present 

fairly, in all material respects, the financial 

position of the company and its subsidiaries, 

and the consolidated results of their 

operations [and their cash flows], as well as 

to adopt appropriate accounting policies 

and criteria and to maintain adequate 

systems of internal accounting controls. 

3. Our responsibility is to express an 

independent and professional opinion on 

these consolidated financial statements 

based on our examination. 

Scope 

4. We conducted our examination in 

accordance with the Standards and 

Technical Recommendations approved by 

the Institute of Statutory Auditors which 

require that we plan and perform the examination 

to obtain reasonable assurance 

about whether the consolidated financial 

statements are free of material misstatement. 

Accordingly, our examination included: 

(i) verification that the subsidiary´s 

financial statements have been examined 

and for the cases where such an examination 

was not carried out, verification, on a 

2. Report of Statutory 

Auditor 

test basis, of the evidence supporting the 

amounts and disclosures in the consolidated 

financial statements, and assessing 

the reasonableness of the estimates, based 

on the judgments and criteria of 

Management used in the preparation of 

the consolidated financial statements; (ii) 

verification of the consolidation operations 

and, when applicable, the utilization of the 

equity method; (iii) assessing the appropriateness 

and consistency of the accounting 

principles used and their disclosure, as 

applicable; (iv) assessing the applicability 

of the going concern basis of accounting; 

and (v) evaluating the overall presentation 

of the consolidated financial statements. 

5. Our audit also covered the verification 

that the financial information included 

in the management report is in agreement 

with the financial statements. 

6. We believe that our examination provides 

a reasonable basis for our opinion. 

Opinion 

7. In our opinion, the consolidated 

financial statements referred to above, present 

fairly in all material respects, the consolidated 

financial position of Secil – 

Companhia Geral de Cal e Cimento, SA 

as at December 31, 2008 and the consolidated 

results of their operations and their 

cash flows for the year then ended in conformity 

with generally accepted accounting 

principles in Portugal, derogated by 

the application of International Financial 

Reporting Standards (IFRS) as mentioned 

in note 1.2. 

Lisbon, March 6, 2009 

PricewaterhouseCoopers & Associados, 

SROC, Lda 

represented by: 

Abdul Nasser Abdul Sattar, R.O.C. 

136 | 137 

ANNUAL REPORT 

SECIL 2008

SHAREHOLDERS 

CEMENT ■ Secil (100%) 

CMP (96,85%) 

READY-MIXED 

AND 

AGGREGATES 

MORTARS 

AND BINDERS 

PRE-CAST 

CONCRETE 

ENVIRONMENT 

AND ENERGY 

TRANSPORT 

AND SERVICES 

FINANCIAL 

SOCIETIES 

AND OTHERS 

■ Secil Martingança (97%) 

IRP (67,93%) 

■ VIROC (32,80%) 

■ Chryso (40%) 

■ Secil Unicon (50%) 

Secil Prebetão (85%) 

■ Argibetão (42,50%) 

■ Setefrete (25%) 

■ CCV (100%) 

■ Tercim (100%) 

SEMAPA GROUP (46,96%) 

MAINLAND MADEIRA 

■ Secil Betões e Inertes (100%) 

Unibetão (100%) 

Britobetão (73%) 

Sicobetão (100%) 

Minerbetão (100%) 

Camilo e Lopez (100%) 

■ Secil Britas (100%) 

Carcubos (100%) 

■ Ecoresíduos (100%) 

Prescor (100%) 

■ AVE (51%) 

■ Secil Energia (100%) 

■ Ciminpart 

■ Condid 

■ Florimar 

■ Serife 

PORTUGAL 

■ Cimentos Madeira 

(67,40%) 

■ Betomadeira (57,14%) 

■ Brimade (57,14%) 

■ Pedra Regional (29,14%) 

■ Madebritas (29,14%) 

■ Inertogrande (19,04%) 

■ JMHenriques (28,57%) 

■ Promadeira (57,14%) 

■ Sanimar (57,14%) 

■ Hewbol

TREASURY STOCK (7,90%) 

SECIL INTERNATIONAL 

■ Société Ciments 

de Gabès (98,72%) 

■ Ciments 

de Sibline (50,50%) 

■ Sudbéton (98,72%) ■ SOIME (50,50%) 

■ Zarzis Béton (78,97%) 

■ Secil Lobito (51%) 

CRH GROUP (45,13%) 

TUNISIA LEBANON ANGOLA CAPE VERDE OTHER 

■ Secil Angola 

■ Secil Cabo 

Verde (100%) 

■ Inertes de Cabo 

Verde (62,50%) 

138 | 139 

ANNUAL REPORT 

SECIL 2008 

■ Secil Algérie 

(Algeria) (97,90%) 

■ Silanor SA 

(France) (100%) 

■ Somera (100%) 

■ Secilpar (100%) 

■ Parcim 

■ Seciment

Common Name: Orchid 

Scientific Name: Anacamptis pyramidalis

Common Name: Pimpernel 

Scientific Name: Anagallis arvensis 

140 | 141 

RELATÓRIO & CONTAS 

SECIL 2008

Common Name: Badger 

Scientific Name: Meles meles

Edition 

SECIL - COMPANHIA GERAL DE CAL 

E CIMENTO, S.A. 

Secil - Outão Plant 

2901-864 Setúbal 

Phone 

+351 212 198 100 

Fax 

+351 265 234 629 

E-mail 

comunicacao@secil.pt 

Site 

www.secil.pt 

Graphic Design 

Draftfcb 

Print 

Madeira & Madeira 

Draft 

500 copies

SECIL - COMPANHIA GERAL DE CAL E CIMENTO, SA 

www.secil.pt

5. - Secil

Create successful ePaper yourself

Delete template?

Save as template?