Annual Report 2010 - AdP

5. Our audit also included a verification of the consistency between the financial information in the annual report
and in the consolidated financial statements.
6. We believe that the audit we performed provides an acceptable basis for expressing our opinion.
Opinion
7. In our opinion, the above-mentioned consolidated financial statements truly and adequately represent, in every
material aspect, the consolidated financial position of AdP – Águas de Portugal, SGPS, S.A. on 31 December 2010,
the consolidated results of its operations and consolidated cash flow for the year ending on this date, in accordance
with international accounting standards used in the European Union.
Other Legal Requirements
8. It is also our opinion that the information contained in the annual report is consistent with the consolidated
financial statements for the year.
Remarks
9. Without prejudice to our opinion expressed in (7) and (8) above, we wish to add the following:
9.1 As explained in point 5 of the Notes to the Financial Statements, beginning on 01 January 2010, AdP – Águas
de Portugal, SGPS, S.A. began using the international accounting standards adopted by the European Union to
prepare and report its financial information. The re-expression on this date, for comparative purposes, shows
that total equity was affected positively by 107,642 thousand euros, and the 2009 net income was affected
positively 19,414 thousand euros.
9.2 As explained in point 2.5.2, 15 and 35 of the Notes, the consolidated financial statements of AdP – Águas de
Portugal, SGPS, S.A. show asset (310,763 thousand euros in 2010 and 262,488 thousand euros in 2009) and
liability tariff deficit (135,317 thousand euros in 2010 and 124,876 thousand euros in 2009); these amounts
refer to differences between tariffs and the prices practiced, and those that would correspond to the recovery
of costs incurred plus return on equity in concession contracts of production and purification (water) and waste
recovery and management companies. The grantor has yet to determine how it will rectify the economic and
financial balance of the concession contracts where this is justified, under which circumstances it recently
requested that AdP - Águas de Portugal, SGPS, S.A. conduct studies to submit a proposal to review the
concession contracts with changes significantly impacting the concessionaires’ financial balance.
Lisbon, 08 April 2011
Alves dAuditors’ Report
(Consolidated Financial Statements)
a Cunha, A. Dias & Associados
Statutory Auditors
Represented by José Duarte Assunção Dias