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Sustainability ReportSonae SGPS, S.A.

06

1. Chairman’s Statement

2. Sonae Group business approach and portfolio2.1 Governance Model Share Ownership Holding Company Structure Group Ombudsman

3. Our approach towards sustainable management Shareholder Value Environment in the Governance Model Knowledge Community and Education3.1 Sonae Holding’s role in relation to the management practices of sub-holdings Global Compact and Sustainable Development3.2. Values and Principles3.3. Managing New Risks: Strategic and Operational Sonae Risk Management Process Business Risk Model

4. Commitments and Guidance to the sub-holdings

5. Main Group Sustainability Milestones

6. Examples of Sustainability Strategy in action in the sub-holdings6.1 Risk Management6.2 Eco-Efficiency6.3 Business Chain6.4 Human Capital6.5 Stakeholder Dialogue6.6 Community Involvement

7. New Risks transformed into New Markets and New Businesses

Glossary

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29

33333846505662

69

74

.Index

The publication of our fi rst Sonae Group Sustainability Report refl ects our intention to communicate in a transparent way with our key stakeholders, in particular investors, employees and the general public.

05Sonae SGPS, S.A.Sustainability Report 06

This Report describes how sustainability is incorporated into the Sonae Group’s management structure and practices, with special emphasis on corporate governance and risk management; the commitments that Sonae SGPS, as the Sonae Group holding company, makes in relation to our sub-holdings, in its role as the manager of a portfolio of diversified businesses; and a range of sustainability practices that have been or are being implemented across the Sonae Group. The Report demonstrates how Sonae, in addition to creating economic value, acts responsibly both environmentally and socially. Although this is the Group’s first sustainability report, it is a continuation and extension of the work begun in 2001, when we published our first Group Environmental Report. Each of our sub-holdings have been making progress in terms of “walking the talk” of sustainability, as the following pages will show. All sub-holdings, with the exception of Sonae Capital, will issue Sustainability Reports during 2007. In the case of Sonae Sierra, 2006 will be the third consecutive year for which an outstanding sustainability report has been published, an achievement of which we can feel justifiably proud. The specific characteristics, history and market sectors of each of the Group’s businesses have been determining factors in the manner in which sustainability continues to be integrated into the governance model of each, and explain the differing speeds of implementation. As a portfolio manager, we encourage our businesses to seek constantly to improve the manner in which we integrate social and environmental issues into our management practices, to develop appropriate reporting and measurement, and to anticipate new trends in order to identify new business opportunities arising from sustainability. Due to our specific circumstances and challenges however, each sub-holding is directly responsible for identifying the specific opportunities that may arise from this integrated approach, and to define the best strategy to maximise value creation. In addition to the key role of Sonae SGPS to identify overall Group guidelines in this area, one of other main tasks is to play an active role in international organisations in which the sustainability agenda is being developed and defined. In this respect, Sonae SGPS continues to play an active role in the World Business Council for Sustainable Development and in activities undertaken by the Portuguese branch of this organisation, the BCSD Portugal. In 2004, Sonae SGPS signed the United Nations Global Compact, a voluntary commitment which involves the disclosure of information each year on how its 10 principles, covering labour, environmental and anti-corruption practices, are applied and complied with. It is an area that the Group is actively working on to improve. In 2005, Sonae SGPS also signed the World Safety Declaration, a document that was approved at the XVII World Health and Safety at Work Congress. This declaration aims to establish goals and define criteria for the evaluation of safety improvements introduced at the workplace, and seeks to encourage signatory companies to cooperate in the search for better solutions and to report results achieved at the next Congress meeting that will take place in 2008. Sonae will be present and participate actively in this event. In this document therefore, we report on our practices and explain our ambitions and commitments, but we also accept our limitations. At the same time, we commit to constantly strive to improve in these areas which are so crucial for business and society at large.

Belmiro de AzevedoChairman

Chairman’s Statement1.

6 Sonae SGPS, S.A. Sustainability Report 06

Sonae was founded in 1959 in the wood products business and today is a diversified, integrated group made up of different management teams. In 2006, the Sonae Group generated turnover of 4,383 million euros and directly employed 33,181 people spread across several continents, cultures and races. In Portugal, the gross value added (GVA) generated to society was 0.8% of Portuguese GVA and our employees represented 0.6% of the Portuguese employed population.


Sonae Group business approach and portfolio

2.

Sonae started business in Maia, in the wood products business and more specifically the production of high-pressure decorative laminates. During its first twenty years of existence, Sonae developed as a small to medium size business, focused on the area of wood based panels. During the 1980s, the company began a period of rapid growth, which coincided with Portugal’s entry into the European Union. During this period, Sonae also began a process of diversification through the acquisition of a supermarket chain, followed by the launch of the first Continente hyper-market in Portugal.

Today, Sonae SGPS, SA is the group holding company, managing a diversified portfolio of businesses: Modelo Continente (food and non-food retail), Sonae Sierra (development, management and investment in shopping centres), Sonaecom (mobile and fixed telecommunications, media, Internet and IT services) and Sonae Capital (tourism, engineering services and real estate development, facility management, insurance brokerage and risk management, and seed and risk capital).During these years of growth, the various group companies developed their businesses in an independent manner, identifying specific strategies in relation to their markets. Sonae Indústria, the Group’s first business area in wood based panels, was spun off from the Group in 2005. The

“If we have the right financial resources, shareholder stability, professional manage-ment, good educational and training levels as part of our culture and principles, than we have the key ingredients to work together as a team and succeed in the long term”

Belmiro de Azevedo, speech given to Sonae Industria Managers, 26th September 2000, Troia, Portugal

spin off was considered necessary to give Sonae Indústria improved access to international financial markets to help fund its future growth.

Modelo Continente is currently operating entirely in Portugal but is considering possible options for future growth outside the country. Sonae Sierra has focused on an international strategy. It currently has a portfolio of major shopping centre projects under construction and centres already in operation, in Brazil, Germany, Greece, Spain and Italy, in addition to Portugal. Sonaecom has been operating in Portugal since 1994 (but only known as Sonaecom since 1999), and is focused on Telecommunications, Media, and Software and Systems Information (SSI). Over the years, Modelo Continente was listed on the Portuguese securities market (Euronext, Lisbon) between 1987 and 2006, and Sonae Sierra between 1997 and 2001. Currently, Sonae SGPS and Sonaecom are those companies listed on the Euronext.

In view of the economic, social and environmental impacts of the Sonae Group, we have publicly committed to develop our business activities based on the principles of sustainable development, which imply a continuous challenge to maximise positive and minimise potentially negative impacts on the environment and society.

Jun.06 Dec.06Jun.03 Dec.03 Jun.04 Dec.04 Jun.05 Dec.05

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80

100

120

140

160

180

200

Dec.02

Sonae SGPS Sonaecom

Share Price Performance(Base 100)

Dec.01 Jun.02


Each of the four sub-holdings has specific environmental and social impacts as a direct result of their activities, as the chart below shows.

In today’s complex world, the Group’s impacts, risks and opportunities are interlinked, and involve economic, envi-ronmental, social and governance factors. This report aims to inform our stakeholders about the way we have been managing these impacts and risks.

Modelo Continente Sonae Sierra Sonaecom Sonae Capital

. Energy

. Transport

. Waste

. Climate Change

. Land Use

. Supply Chain

. Energy

. Transport

. Waste

. Climate Change

. Water Consumption

. Land Use

. Supply Chain

. Energy

. Waste

. Electromagnetic Fields

. Energy

. Waste

. Transport

. Water

. Land Use

Envi

ron

men

tal

. Direct and Indirect job creation. Community involvement. Health and Safety (employees, customers and visitors). Employee satisfaction . Food safety. Supply Chain

. Direct and Indirect job creation. Community involvement. Health and Safety (employees, tenants, suppliers and visitors). Responsible Procurement . Employee satisfaction. Supply Chain

. Digital Inclusion

. Community involvement

. Health and Safety (employees, customers and visitors). Employee satisfaction. Information Society

. Direct and Indirect job creation. Community involvement. Health and Safety (employees, customers and visitors). Food safety. Employee satisfaction

Soci

al

Major Impacts by sub-holding

The Group portfolio is currently structured as follows:

Modelo Continente Sonae Sierra Sonaecom Sonae Capital

100% 50% 51,92% 100%

Food and Non Food Retail Shopping Centers Telecommunications Services

Portugal

PortugalSpain

GreeceGermany

ItalyBrazil

1 Software & Systems Integration= Size of Free Float

Portugal

PortugalFranceBrazil

HypermarketsSupermarkets

Consumer ElectronicsApparel

Sports GoodsComputers

DIYKidswear

Travel AgenciesPharmacies

Mobile Communications

Sierra InvestmentsSierra ManagementSierra DevelopmentSonae Sierra Brazil

MobileFixedMediaS&SI1

TourismEngineering Services

and Real Estate Development

Facility ManagementInsurance Brokerage

andRisk Management

Seed and Risk Capital

Sonae SGPS


Sonae Capital

Total Nº Employees = 33,181; 67% Female; 33 % MaleTotal Nº Employees in Portugal = 98%Total Nº Employees abroad = 2%

Permanent ContractTemporary

Type of job contract at Sonae Group

85%

15%

Modelo ContinenteSonae SierraSonaecom

Direct employment by Sub holding

94%

2%1%3%

Our Human CapitalEmployees*

* Staff numbers as at 31.12.2006

1 Based on data from the National Statistical Institute (INE): Portuguese population figures and preliminary GVA

Our Wealth GenerationDirect Economic Value Generated and its distribution in 2006 (Million euros)

Total of DirectEconomic Value Generated

Total Economic Value Distributed

Economic ValueRetained

0

1,00

0

2,00

0

3,00

0

4,00

0

5,00

0

6,00

0

The importance of the Sonae group for the Portuguese Economy in 20061:

Gross Value Added (GVA) in Portugal represents 0.8% of Portuguese GVAEmployees in Portugal represent 0.6% of total Portuguese population employed

The Economic and Social Impact of the Sonae Group

GVA = Turnover + Changes in stocks + Own work capitalised + Supplementary income - cost of goods sold and materials consumed - External supplies and services

Our WealthEconomic Value Distributed to our stakeholders

Operating CostsStaff CostsProviders of CapitalGovernment

Structure of the Economic Value Distributed

82%

1%4%

13%

Operating Costs = External Suppliers and Services + Cost of Goods Sold and Materials Consumed + Other CostsStaff Costs = Employee Wages ands BenefitsPayments to Providers of Capital = Financial Costs + DividendsPayments to Government = Taxes (excluding deferred taxes)

Wealth Generated by the Sonae Group 2006

Turnover (Sales + services rendered) 4,384

Turnover in Portugal 4,060

Gross Value Added (GVA) 1,112

Operational Profit EBIT 357

Operational Cash Flow EBITDA 599

Amounts in million Euro

For more detailed financial information about the Sonae Group, please go to the Investors Relations section on the company website at www.sonae.pt

401

4,536

4,937


Governance Model

Hand in hand with the growth of the Sonae Group has been a constant concern to adopt best worldwide management practices in relation to governance and sustainable development, as well as the need to understand the signals coming from international organisations in order to anticipate management trends and potential business opportunities. Our values and principles which were finalised and published in 1999 reflect this reality, and are, currently, wholly compatible with the demands of international society. Sonae seeks to associate itself with leading international organisations, requiring management to strive to continually update and improve itself, in order to meet the expectations of our various stakeholders and of society in general.

Sonae Group Share Capital OwnershipEfanor Investimentos, a family holding company, of which Belmiro de Azevedo is chairman, holds a majority stake in Sonae SGPS. It held approximately 53% of the shares and 56% of the voting rights at 31 December 2006. Sonae SGPS is listed in Lisbon on the Euronext stock exchange. The remaining free float is widely held.

Although the Sonae Group is controlled by Belmiro de Azevedo through a majority stake in the share capital and voting rights, the Group is not run as a typical family business, where bloodlines can take precedence over individual merit and family issues can confuse business affairs. In our opinion, the existence of an active and involved reference shareholder also brings

“The issues of governance and the transparency of a company in relation to markets is one of the corner stones of a credible and sustainable market economy. It is up to all of us to contribute towards preserving the credibility and sustainability of the economic model in which the organisation of our society is placed.......[we are] increasingly responsible for the transparency and the way in which we prepare, control and communicate relevant information to the markets. We know that this information is vital for investors and financiers to take decisions”.

Belmiro de Azevedo, XX Economic Round Table Meeting, November 2002, Barcelona

2.1.

greater stability to management, allows a consistent and longer term view to be taken, facilitates the process of motivating employees and brings greater willingness to seek and adopt innovation, while at the same time promoting a balanced and equitable approach to all of our shareholders and other stakeholders. It also means that there are no conflicts resulting from the sharing of power between controlling shareholders or from the separation of the interest of shareholders and management. Responsibilities are focused and very clear and a management system based on trust and transparency becomes an imperative.

Sonae Holding StructureA management team supported by one key shareholder needs to include the very best managers available. They should possess a high level of drive, curiosity and a desire to learn about new ideas and concepts, and they should be brave enough to question the status quo and to propose new approaches to business. It is fundamental that there should be open and transparent discussions among management about business strategy and its operational implementation.

Therefore, Sonae has developed procedures to ensure that:

. strategies are evaluated

. day to day management is analysed critically

. risks are monitored

. there is a continuously developing internal control system

“ ... we have consistently taken, over the years, clear decisions in favour of free and fair trade, transparent reporting to the authorities and society, internal social cohesion within the group, and have actively supported international organizations dedicated to spreading principles of good governance. We were the first Portuguese company to join the World Business Council for Sustainable Development, and we were also one of the founding fathers of the Portuguese Chapter of the Council. We have also joined the European Corporate Governance Institute”

Belmiro de Azevedo, IV Top Managers’ Meeting – Sonae Sierra, December 2004


“It is crucial that the company is able to implement internal procedures that allow strategies to be evaluated, management to be followed up on and critically appraised, risks to be monitored and internal control systems implemented. And at the same time, ensure sustainability in the medium/long term, by adopting environmental, social and labour policies which preserve natural resources and place value on human capital.”

Belmiro de Azevedo, XX Economic Round Table Meeting, November 2002, Barcelona


Board of DirectorsChairman: Belmiro de Azevedo

ExecutiveÁlvaro Portela

Ângelo PaupérioNuno Jordão

Paulo de Azevedo

Non-ExecutiveÁlvaro CuervoLuiz Lampreia

Michel BonNuno de Azevedo

Board Audit and Finance CommitteeChairman: Michel Bon

Álvaro CuervoLuiz Lampreia

Nuno de Azevedo

Board Nomination and Remuneration Committee

Chairman: Belmiro de Azevedo

Luiz LampreiaMichel Bon

Vice PresidentsÁlvaro Portela

Ângelo Paupério

Vice PresidentsNuno Jordão

Paulo de Azevedo

Executive CommitteeCEO: Belmiro de Azevedo

Investors Relations José Luis Amorim

Corporate Communications Cristina Carneiro

Human Resources José Côrte-Real

Management Control and

Administration José Luis Amorim

FinanceAndré Sousa

LegalLuzia Gomes Ferreira

Audit and RiskManagement

Domingos Sequeira

Tax ManagementDavid Ferreira

Sonae SGPSManagement of Strategic Decisions

Decisions about Strategy Implementation

Approves:. Annual Report and

Accounts. Annual Business

Portfolio Strategy. Annual Business

Plan and Significant Changes thereto

Responsible for:. Operational

Management. Business Portfolio

Management. Financial

Coordination. Career Development

Among Top Managers

The Executive Committee of Sonae SGPS is made up of the

CEOs of each of the Group sub-holdings

Group knowledge sharing and coordination bodies also exist, such as:. Finance Committee. Audit Committee. Human Resources Consultative Group. Innovation Forum. Sustainability Forum

. business is sustainable in the medium and long term

. environmental policies are adopted to improve eco-efficiency and to minimise our environmental footprint

. policies and processes are adopted to maximise our human capital

As shown below, the two key governing bodies of Sonae SGPS are the Board of Directors made up of 5 executive and 4 non-executive members (of which 3 are independent), and the Executive Committee. An important feature of the Executive Committee is that it includes the CEOs of each of the sub-holdings. This provides a direct link between each of the businesses areas and the Holding company, which facilitates the sharing of business strategies across the Group. In this way autonomy is given to each sub-holding to decide the best means of managing its own businesses, while ideas are shared and activity is co-ordinated at the top Group management level.

Sonae Group Ombudsman Via its website (www.sonae.pt), fax and mail, the Sonae Group has always given staff and the general public direct access to the Sonae Group Ombudsman, who reports directly to the Chairman of the Sonae Group. This has proven to be an effective way of facilitating the reporting of complaints, which are followed up internally by a manager of the Sonae Holding Company to make sure that independence and freedom of opinion are guaranteed and that all issues are treated equally and fairly. In all our businesses, employees are encouraged to contribute suggestions and to openly communicate with management on any issues which may impair their responsibilities or may threaten their well being.

The Sonae Ombudsman in 2006

During 2006, 1.573 claims were received by the Sonae Group ombudsman.

The average time to resolve a claim in 2006 was 34 days with a falling trend in all quarters to reach 22 days in the last quarter of the year. Considering the number of claims received and the complexity of the problems involved, this is a demonstration of the effort made by the services involved to improve turn around time.

Claims still not resolved at year end 2006 (2% or 38 cases) relate to recent cases or those still in analysis.

Almost all claims are related to customers (99% in 2006).

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Our approach towards Sustainable Management3.

The management of sustainability at the Sonae Group has always been part of the strategic development of the company. Sustainable Development and its application to business has become one of the main concerns of the Group, while it has also been perceived as a way of developing new businesses and reducing costs.

Human capital has also always had a key place in the growth strategy of the Group. In addition to training which is specifi c to the improvement needs of each employee, employees are encouraged to develop their creativity and constantly search for excellence. “A thirst for excellence, and a habit of constantly challenging the businesses, demands a culture of permanent innovation and entrepreneurship”1: a situation that can only be achieved with a responsible and professional team.

In the same way, environmental issues have always been an important part of the Group’s management. For example, various training sessions have taken place on eco effi ciency so that an internal Group culture exists which allows the continuous identifi cation of new methods of putting this concept into action, with the goal of minimizing energy and water consumption, and maximizing waste recovery.

This approach has been progressively integrated into our management model, and implemented by each of the sub-holdings by actions specifi c to their businesses. We have made progress in the way that we practise the principles of sustainable development, but recognise that we will have to develop a more structured approach to sustainability in particular in relation to international best practice guidelines and the growing importance of non-fi nancial information.

In the same way, environmental issues have always been an important part of the Group’s management.

“We are in favour of competition and believe that a key feature of successful organisations should be their concern for the personal development of their employees as well as the strength of their leadership.

From the point of view of Corporate Social Responsibility, a company cannot be simply a money making machine. In addition to giving the maximum return on investment to shareholders, businesses have to earn the respect of the societies in which they operate, preserving social cohesion, protecting the environment, and ensuring the long term sustainability of the planet on which we live”.

Belmiro de Azevedo, Leadership Forum, London Business School, November 2006

1 Belmiro de Azevedo, Leadership Fórum, London Business School, November 2006

. Eco Effi ciency

. Responsible Environmental Management

. Implementation of Environmental Management Systems

Governance

Environment

Sonae Approach to Sustainable Management

Social

. Knowledge

. Empowerment

. Matching skills with job functions

. Creativity

. Questioning status-quo

. Community involvement (social, educational support)

. Values

. Business Principles

. Risk Management

. Transparancy

. Group Knowledge sharing and coordination

Shareholder Value

Maximization of future Economic Value of the Company

Shareholder ValueSustainable management means managing our company in order to maximise its profi tability, while internalising environmental, social and governance issues into our business strategy, since these will have an infl uence on our fi nancial performance. Such a complex subject that is of concern to all Group businesses led our Chairman in 1994 to challenge all sub-holdings to develop an environmentally responsible attitude towards business, and to consider the environment as a competitive advantage.


Knowledge

In 2004, the Sonae Learning Centre was set up in the Sonae headquarters building in Maia. This Centre is mainly targeted at specific training for top managers and technical employees, and its main purpose is to provide training, conferences, seminars, short and medium term courses, exhibitions and social events of various kinds.

We have developed specific training sessions for business units, but also opportunites for longer term study such as Post-Graduation courses, specifically built to meet the skill improvement needs of our employees. These courses are developed in partnership with Portuguese and International universities. Some of our employees also complete MBAs and other post-graduate courses in the main European Business Schools

Year Nº

2005 18,694

2006 19,062

Number of Sonae employees present in Learning Center courses

In Sonae, people must have the desire to learn, and they must embrace change as part of their careers (summary speech by Belmiro Azevedo, Sonae Indústria Managers Meeting, September 2000, Troia.)

In order to develop a business management system that is able to understand, anticipate and incorporate the challenges that today’s business world presents to our operations, we must be able to question the status-quo and think creatively. Continuously updated knowledge and the constant search for excellence constitute the corner stones of an innovative, modern and bold organisation.

The training of all Sonae staff is a factor that differentiates Sonae Group management, since all staff are constantly challenged to learn.

Environment in the Governance ModelIn 1995, Sonae become a founder member of the World Business Council for Sustainable Development (WBCSD), thus formally demonstrating our conviction that environmental issues would become key factors in the success of companies and that business strategy based on the principles of sustainable development represented good corporate governance.

Between 1995 and 2000, the Sonae Group ran several workshops, conferences and internal eco-efficiency programmes, and in 1999 launched the ECO2XXI programme, aimed at encouraging eco-efficiency across the Group. In 2000, Sonae broadened the composition of the Environment Forum to include Environmental Coordinators from all sub-holdings. It was a platform for sharing information, experiences and best practices across Group, and for challenging the sub-holdings to take action on environmental issues. The Forum was responsible for planning, organising and animating training and awareness events as well as for general communication of environmental matters across Sonae’s businesses. It also had the responsibility of advising the Board of Directors of Sonae on all issues concerning the environment. The Chairman of the Forum was appointed by the Board.

In 2001, the Sonae Group published its first Environmental report. A further report was issued in 2003, which included key environmental indicators from each sub-holding. Between 2000 and 2004, a quarterly environmental newsletter - Eco News - was also published for distribution to all Group employees, available both in print and on the Internet, in order to increase environmental awareness and encourage best practices.

In 2005, the Environment Forum evolved into a Sustainability Forum and in 2006, all sub-holdings were invited to strengthen their sustainability strategies and issue sustainability reports. Some sub-holdings have already begun this process, while others are now beginning to develop a more structured approach to sustainable management.


Community and EducationWe believe that business can contribute towards minimising the impact of social problems that are part of the society in which it operates. We also recognise that access to cultural activities through partnerships with other businesses, individuals or organisations, has a significant contribution to make to the development of society. Therefore, the Sonae Group has developed social initiatives among its sub-holdings to support projects that lead to positive long term results within the community.

Despite being independent from the Sonae Group, it is appropriate to mention the Belmiro de Azevedo Foundation, a private charitable institution which supports innovation and change in favour of the community, especially in the arts, science, technology, education and training. Through contributions made by sub-holdings to the Foundation, the Group in turn contributes towards a better educated and demanding civic society. Each sub-holding engages with the community both directly and via the Foundation.

The Foundation also supports the children of employees with scholarships for those children with outstanding academic performance, in order to encourage their academic development. Between 2000 and 2006, sub holdings, through the Foundation donated a total of approximately 24 million euros.

Since 1986, Sonae has organised the Contacto Programme, which takes place annually and to which final year undergraduates from Portuguese Universities and young post graduates with MBAs are invited. More than 3,500 undergraduates have taken part in the programme since then, and several hundred have been invited to join the Group.

In 2006, around 300 undergraduates and graduates attended. During the day long event, the participants learn about the Sonae Group, and meet senior Sonae managers. The programme’s main aims are to allow talented young people to get to know the Sonae Group and to discover quality management potential in Portugal.


The growth of the Sonae Group has taken place with a lean and agile management structure, designed to allow each company to have the capability of anticipating, adapting and reacting to change, which is one of the basic competitive advantages for the success of any company.

This approach to management was already present in 1985 when the Chairman defined the ten “guiding principles” for Sonae managers (see page 20). Already at that time, there was the concern of making the business grow in a unified and stable manner, but allowing creativity, flexibility and freedom of action by the managers of each Group company in order to encourage a bold attitude to identify business opportunities, and not run the risk of losing them because of excessive bureaucracy or functional issues. For the success of this management approach, professional human resources are needed, who combine boldness, a sense of responsibility for their actions together with a questioning attitude towards the world around them.

A management style of this kind is closely associated with the visionary and guiding character of its leader, who constantly challenges the status quo both inside and outside the company, while at the same time setting himself as an example of frugality and rationality in the management of the group’s businesses and in personal working habits.

The Group is thus united by a set of values and principles, by a governance model and by a common risk management methodology, in which it is expected

“A culture of innovation and entrepreneurship demands [...] a culture of risk taking. It demands that one puts confidence in people, creating organisations in which they individually are encouraged to fight against conformity, to constantly propose new solutions. It also demands that there exist in organisations performance reward and recognition systems, which are not exclusively based on results, in the strictest meaning of the term”.


When he defined the “Ten Guiding Principles”, Belmiro de Azevedo also stated that the values “... should last a long time, should not be a code in the sense of a creed or mantra, and also could not be too specific at the risk of being too dogmatic and not leaving enough freedom to all our companies to change their behaviour without changing the values”.

Belmiro de Azevedo, The Value and Limits of Ethical Codes in Business Activity

3.1. Sonae Holding’s role in relation to the management practices of sub-holdings

and desirable that each sub-holding advances and grows in accordance with the opportunities identified in the markets in which it operates. The Group is therefore made up of many companies, consolidated into sub-holdings, each of which are in different phases of development in certain areas.

Global Compact and Sustainable DevelopmentIn 2004, Sonae SGPS signed up to the ten principles of the UN Global Compact, which asks companies to embrace, support and enact within their sphere of influence a set of core values in the areas of Human Rights, Labour Standards, the Environment and Anti-Corruption, Sonae thus committed itself publicly to report on the manner in which these principles are applied in the daily management of the Group.

Some of these principles, such as the absence of child or forced labour, and the existence of anti corruption practices, are not only incorporated into Portuguese law but also are part of the Sonae values and principles, which are applied by all employees in all parts of the world where Sonae does business.

Nonetheless, we recognise some limitations in our ability to control the practices of all our suppliers, and although we are not aware of any specific case along the value chains of our sub-holdings, we commit to find alternative suppliers if we discover any who are not complying with the Compact principles. Each sub-holding has been working and will continue to work on actions that move in the direction of these principles, and we are conscious


of the need for certain aspects to be addressed with more specific actions in the future. One area will be to look more closely at increasing our influence on the management practices of our suppliers and subcontractors along the value chain, the scope of which will need to be defined with these key stakeholders.

By signing the Global Compact, Sonae SGPS aims to drive its sub-holdings forward towards incorporating social, environmental and human issues in a more structured way into their daily management. It is each sub-holding’s responsibility to develop the appropriate approaches, methodologies and actions to implement, and they must analyse in a continuous and evolving manner, how sustainability is related to their core businesses. For this to be possible, creativity, a forward looking approach and a sense of opportunity are the key elements in the process.

We believe that strengthening sustainability in the core business and governance model of our companies is fundamental to the continuous success of our “living” company.

“Ethics in Business [...] is the relationship between business and society [...] The reality we face today is that businesses need a licence from society to operate. Or putting in another way, businesses need to earn the respect of society in order to operate.

Even in countries where we know that our competitors are taking advantage of the lo-cal way of doing business through kickbacks, we should refuse that practice and stick to our values of integrity and transparency without any kind of compromise. Even if we have to lose the deal or have to give up doing business in the country, it will pay in the future.

We do not have to make deals that do not fit the policy of the Group. The more we refuse, the bigger will be our contribution towards a more transparent relationship with competitors, authorities and clients.”


Values and Principles3.2.

A set of values and principles have always existed as part of the Group’s good management practices. Since 1985, the ten “guiding principles” defined below have been part of day to day management. They were targeted specifically at Group managers and focused on the key attributes that they should aspire to. Even at that time, the emphasis was

put on a balance between leadership qualities, personnel development and competition on the one hand, and integrity, personal ethics, and community involvement, on the other.


“There is no business that can justify any compromise with these [10] principles, or with values such as integrity, personal ethics and social responsibility. The fi ght against corruption, both public and private, has always been and will continue to be at the top of the agenda of a group like Sonae”


“For a group of Sonae’s size operating in diff erent countries and cultures [...] there is often no way but to abide by our principles. Our Values and our Principles can be viewed as the glue that keeps us together and guarantees our strength and common future.”


These ten guiding principles are:

01. To be a leader, or have the capability of becoming one 02. To constantly improve their cultural knowledge03. To be available, and physically resistant during

demanding working periods04. To accept criticism from superiors and subordinates, and consider and be able to respond in a

constructive manner05. To have great respect for the work of subordinates, ensuring that they always have good working conditions, and have appropriate training to continuously improve their level of knowledge06. To be known inside and outside the company for the rectitude of their character07. To be highly demanding of themselves, be dedicated

to their work and to fi nd the appropriate balance between their personal and working lives

08. To have a rigorous code of conduct and ethical values09. To accept the challenge of internal and external competition10. To continuously search for excellence, which will be

achieved as a result of the cumulative impact of good decisions taken over time.

Their publication gave the markets advanced warning as to how Sonae would focus on the professionalism and ethical behaviour of its staff .

In 1993, Sonae presented its new logo designed to signify the capability for growth and permanent innovation in the group, and the energy, fl ow and synergies among all its businesses. While the ring of fi re is closed, signifying

a spirit of cohesion, the shoots are open, unrestricted, signifying creativity. This is how Sonae sees its future.

In 1999, the Sonae Group Business Values and Principles were defi ned, which evolved naturally from the ten “guiding principles” for managers, to a set of values and principles applicable to all employees and sub-holdings. They are fl exible enough to allow each sub-holding the freedom to develop their own specifi c values and principles related to their own business problems and challenges. Working in several countries with diff erent cultures and diff erent ways of conducting business is an opportunity for our employees to broaden their mind set, improve their understanding of diff erent cultures, and expand their professional and personal knowledge.

All the above needs to be achieved with a high level of respect for people and the environment. This is why it is so important to maintain a consistent set of values that are visible in our past activities, so that we can be seen as credible players when we decide to implement projects with high levels of change, and which will have inevitable consequences for our companies and our employees.

Sonae values and principles provide the foundation for the policies, organisational processes and risk management of the Group.


Business CultureManagementTo accept as a basic principle of good management, the duty of its directors to accept and welcome controls by stakeholders whether they be shareholders, market and financial analysts, suppliers, employees or customers.

LeadershipTo develop skills that add value, enabling businesses to attain positions of leadership in the markets where they operate.

Willingness to changeTo maintain, as a fundamental characteristic of the Group’s culture, a permanent willingness to change.

Loyalty and controlTo base daily management practice on the principles of professionalism, loyalty, frugality, risk management, and the adoption of management methods that swiftly detect and correct adverse situations.

TransparencyTo put into place procedures, which allow a true evaluation to be made of business performance and degree of compliance with Sonae values and principles, namely by obtaining the opinion of employees and outside observers.

Responsibility Towards EmployeesEqual TreatmentTo implement a Human Resources Management policy that contains no form of discrimination on the grounds of race, sex, religion, nationality or social class.

Professional DevelopmentTo offer high levels of satisfaction to all employees, encouraging career development through access to training and educational programmes.

SafetyTo provide working conditions which avoid risks to the health and safety of employees.

Values and PrinciplesThe Sonae Group, aware of its business and social responsibilities, and, regardless of the countries where its companies are located, undertakes to respect the following Values and Principles

Community ResponsibilitiesEnvironmental AwarenessTo constantly improve the environmental performance of its products, processes and activities.

Community InvolvementTo establish close ties with the community specifically through co-operation and support to cultural, sport and social institutions, in ways which are appropriate to each case.

Openness to SocietyTo disclose information about internal projects and activities targeted for employees, the media and the general public, but obviously keeping certain information confidential.

TrustTo develop relationships with business partners, namely customers and suppliers, which are based on high standards of trust.

EthicsTo establish relationships with third parties which are based on principles of honesty, integrity, and transparency. Any form of corruption even in a passive way is unacceptable.

Independence from Political PowerIndependenceTo avoid financing political organisations and parties, as well as avoiding involvement in party political questions. However Sonae has the right to express itself publicly in the way it sees fit, to defend its values and interests.

Co-operationTo adopt a position of independence in relation to central and local government but with a willingness to co-operate with government in many different ways, for example in planning and executing development projects, whether they are for infrastructure construction or new legislation.


For Sonae , Risk Management must be a par t of management practice throughout the entire cycle of the planning and management of the businesses, from strategic to operational planning. It must also be part of the daily management decision making process, since knowledge and awareness of risk contribute towards increasing the quality and security of management actions.

We recognise risk management as a fundamental building block of our approach, due on the one hand to its strategic nature and on the other to its contribution towards identifying new business opportunities, thus involving the entire organisation and constituting yet another factor of innovation and creativity.

Risk management aligns strategy, processes, people, technologies and knowledge with the goal of identifying, evaluating and managing the uncertainties and threats that Sonae Group companies face.

A wide variety of activities are included, which vary in importance according to the business areas involved. As far as business activity risks are concerned, greater importance is in some instances given to facilities and people risks, while in others, risks concerning production equipment and information systems technologies are more important.

In those businesses with the highest public exposure to financial markets, customers and the general public, reputation and image risks take on great importance,

“In the same way as Environmental Management and Social Responsibility, Risk Management is one of the components of the sustainable management of companies, since it contributes towards the continuous development of businesses through a greater knowledge and more effective management of the risks that can impact organisations. - we must be attentive to new risks that are emerging. Their nature and the ways in which they manifest themselves are quite clearly different from the so called “current” risks. To name but a few of those areas producing New Risks, I would choose information Technologies, Nano-Technology and Bio-Technology. We do not yet know the problems that these areas will bring us, but there are already some impacts that go from physical aspects through to ethical and moral issues.

It is a great challenge to examine risks that we do not yet know and are still to come, since it is from them that new opportunities will arise, which I as a businessman am interested in exploring.”

Belmiro de Azevedo, Managing Risk by Value Creation, Risk Management Forum, October 2005

Managing New Risks: Strategic and Operational

both those relating to the corporate image and those concerned with protecting brand images of Group companies. In this respect, special attention is given to environmental risks, those relating to food and work place safety, and also visitor safety (as is the case of shopping centres and stores, which are visited by more than a million customers each day).

In a management approach such as the one implemented in the Sonae Group, internal and external audits are extremely relevant as a part of risk management and control processes. Internal Audit is a management practice that exists since the 1980s. Our approach has developed over the years so that today Internal Audit covers not only traditional audits (financial and compliance) but also business processes and information systems audits, based on risk assessment, in line with international standards and corporate governance codes.

The Sonae Group promotes Internal Audit and Risk Management methodologies and seeks to follow best international practices. As far as human resources are concerned, Group companies sponsor a program of training and updating of skills that includes the international professional certifications of the IIA - Institute of Internal Auditors, the Certified Internal Auditor and Certification in Control Self Assessment, as well as other certifications such as the Certified Information Systems Auditor.

3.3.


The Audit and Risk Management mission

To help companies reach their objectives via a systematic and structured approach to evaluate and improve the effectiveness of risk management and control of business processes and information systems.

“Risk management is carried out with the goal of adding value, through the management and control of uncertainties and threats that may impact the businesses of Group companies on an ongoing basis, with a view to taking advantage of business opportunities”.

Belmiro de Azevedo, Managing Risk by Value Creation, Risk Management Forum, October 2006

Risk Management milestones

1984 - mds, insurance broker, was created with the objective of managing the Sonae Group’s insurance and risk policy throughout the world.

1996/1997 - Sonae re-organises all risk insurance agreements in relation to group activities (nationally and internationally). From this moment, Sonae insurance policy has been based on a global strategic approach.

Since 1997 - Several Internal workshops are held with each sub holding about safety risks and preventive measures. The implementation of risk management processes begins.

1999 - Sonae Re, a captive reinsurance company, managed by mds, was set up with the objective of managing the Group’s insurable risks worldwide. This company is based in Luxemburg.

This globalisation of Sonae’s Risks implied a higher level of understanding and disclosure of risk exposure and preventive measures, concerning insurable risks such as fire, explosion etc.

1999 - Sonae reorganizes the Internal Audit function. In addition to routine financial and compliance auditing, it starts to look at audit risk in a broader, strategic manner. Sonae starts a one year project in which internal audit is reorganised. Over a period of one year, a major analysis of risk factors that could affect Sonae’s businesses was carried out, based on interviews, questionnaires and several workshops. The output of this project in 2000 was:

. Identification and evaluation of Group business risks

. Focus of Internal audit on risks associated with business processes and information systems

. Set up of Audit and Risk Management functions in the holding company and each sub holding

. Implementation of Risk Management and Information System Audit activities

2000/2001 - Sonae felt it was important to develop methodologies concerning risk management. It began a project in Portugal to build them. The pilot project was implemented in Modelo Continente, more specifically in Sport Zone stores. The methodology was tested there, and then rolled out across the Group.


Enterprise Wide Risk Management Approach

6Information

for decision making

1Define and establish the

framework and infrastructure of Risk

Management

2Identify and evaluate

business risks

3Evaluate Risk

Management strategies

4Design and implement

Risk Management actions

5Monitor and report

on Risk Management actions

. Establish targets and objectives

. Define the organisation

. Define a common language

. Develop risk management tools and processes

. Make available facilitating resources (human, financial)

. Determine risk tolerances and limits

. Define the goal risk map

. Determine the risk management strategy (develop options to manage threats or take

advantage of opportunities: eliminate, reduce, transfer, accept)

. Develop a risk management action plan

. Integrate the Risk Management plan into the normal business planning cycle

. Monitor progress on executing the risk management plan.. Monitor changes in the risk profile. Report on progress to risk owner, management

and the Board of Directors

. Identify risks

. Sources of risks (determine the “drivers” of the risks)

. Measure and assign priority to risks

. Establish the current risk map

. Determine the owner of the risk

1

2

3

4

5

We would emphasise that the Audit and Risk Management department’s responsibilities are a consequence of the Values and Principles that underpin the business strategy of the Sonae Group. In practice, this involves the following day to day activities:

. constant risk management and the search for new management practices that are able to detect and correct adverse situations promptly

. a set of practices that allow a systematic evaluation to be made of the true performance of the businesses and the level of compliance with the values and principles of Sonae

. a work environment that minimises professional risks and that promotes the health and safety of staff, suppliers and other third parties

. a dialogue with national and international partners that is guided by the principles of honesty, integrity and transparency

Risk management is therefore an important part of our Governance model, in relation to both statutory and non-statutory bodies.

Sonae Risk Management ProcessRisk management is integrated into the Sonae planning process and is based on the international standard “Enterprise Risk Management - Integrated Framework”, developed by COSO (Committee of Sponsoring Organizations of the Treadway Commission). At Sonae, we look at different levels of risk - strategic and operational - and also at its different kinds: financial, operational, technological, political, environmental, social, and governance. During this process, we identify strategic risks and opportunities that might impact our business in the future and the likelihood of occurrence. Each sub-holding conducts an operational analysis and implements appropriate actions related to the key issues identified.


The table below summarises the kind of issues that can influence our business, either directly or indirectly. In this report, we will show examples of how each sub-holding is responding to these risks. Others will be assessed and managed as the likelihood of their occurrence, market demand and our strategic approach develops.

1 Environmental Issues are becoming financial assets/liabilities, such as Water, Energy, Environmental insurance.2 CO

2 emissions: potential extension of Kyoto protocol to the transport sector.

Business Risk Model

Financial Risks Political and Regulatory Risks Environmental Risks1

. Interest rates

. Liquidity

. Financial market fluctuations

Increasing EU legislationregarding:· Water pricing policies· Energy pricing policies· Insurance policies· Environmental insurance policies· Increasing limitations of access to raw materials· Environmental Taxes· New industry regulations

. Climate change

. Water

. Energy

. CO22

. Waste

. Land Use

Exte

rnal

Ris

ks

Operational Risks · Customers satisfaction · Service quality · Brand image · Pricing · Supply chain · Food safety · Efficiency · Customer and visitor safety · Facility safety and security · Business interruption

Human resources · Outsourcing · Retention · Authority limits · Leadership · Adaptability to change · Health and Safety

Bu

sin

ess

Pro

cess

Ris

ks

Social Risks

. Demographic change

. Change in consumer needs . Community relations

Governance Risks

. Increasing importance of Intangible and traditionally non financial information for investors

Integrity Risks · Reputation · Fraud · Illegal behaviour

Compliance Risks · Legislation and contracts · Internal Control policies and procedures · Safety, Health and Environment policies and procedures

Information Technology Risks · Availability · Integrity · Confidentiality · Non-repudiation · Relevance

Financial Risks · Liquidity · Credit · Exchange rates · Tax · Financial information · Planning and budget


4.


Sonae SGPS as a holding company of a group of companies and manager of a diversified portfolio of businesses commits to continuously challenge all of its sub-holdings in relation to the points set out below:

. To develop the concept of Risk Management in relation to sustainability (environmental and social aspects) and its application at an operational level.

. To progressively implement the use of key indicators suggested by the Global Reporting Initiative.

. To create a set of sustainability key performance indicators which are specific for each sub-holding, identifying objectives and commitments.

. To recognise that the financial return on certain projects relating to eco-efficiency may be small when compared to other opportunities, but that in the long term these returns are compensated by achieving and being seen to achieve a complete integration of sustainability issues into the business of each company.

. To continue training programmes and actions so that new management approaches and potential opportunities can be identified.

. To develop specific training in the area of sustainability and the way in which it can be linked to the core business of each company.

. To encourage the implementation of even more demanding safety policies in order to reduce work accidents.

. To develop a culture of accident prevention through changes in individual behaviour.

. To progressively implement systems that will permit the measurement of direct and indirect CO

2 emissions

from the activities of each business.

4. Commitments and Guidance to the sub-holdings


1985 Definition of the Ten “Guiding Principles” for Sonae’s managers.

1986Contacto ProgrammeThe Contacto Programme began, aimed at identifying high potential University students.

1994 The environment as a factor of competitive advantageThe Chairman of Sonae challenges the businesses to become environmentally responsible, and develop this aspect as a competitive advantage.

1995Launch of the “Projecto Horizonte” “Projecto Horizonte” was Sonae’s first Group-wide project, involving representatives from all businesses. The objective was to strengthen environmental management as an integral part of business management, as a factor of differentiation and as a source of competitive advantage.

Membership of the WBCSDSonae is invited to become a founder member of the World Business Council for Sustainable Development (WBCSD). By accepting this invitation, Sonae committed itself to active membership and participation in key projects of the Council.

1996/1997Sustainable ForestrySonae Indústria sponsors an independent study which presented some proposals for the Strategic Plan for the Sustainable Development of Forestry.

Implementation of “Projecto Horizonte” and creation of the “Environmental Forum”As a result of the “Projecto Horizonte”, the sub-holdings began building their environmental management structures. A need was felt to set up discussion groups where environmental information, experiences and best practices could be shared among the sub-holdings. As a result, the “Forum Horizonte” (Wood Based Panels business) and “Environmental Forum” (Retail and Shopping Centres businesses only) were set up.

1999Launch of the ECO2 XXI corporate programmeWith the growth of Sonae’s portfolio to six sub-holdings in 1999, a corporate structure was needed that could promote synergies and integrated and harmonious environmental management development in all Sonae businesses. The Programme’s objective was to encourage the implementation of eco-efficiency opportunities across all Sonae businesses. It served as an effective driver for the launch of consistent environmental management actions, acting not only as a framework to solve existing problems, but also to avoid potential liabilities. The name of the Programme - Eco2 XXI - itself demonstrates Sonae’s belief in reconciling economic growth with ecological protection, as a guarantee for future sustainable business development, this approach being a key strategic direction for the XXI century.

1st Sonae annual environmental conference The conference brought together around one hundred of Sonae’s top managers from the different business areas. It was an excellent opportunity to present and discuss the Eco2 XXI Programme and to inform participants about the main environmental action plans in each business area, as well as to share information on international trends and experiences.

Principles and ValuesSonae Business Principles and Values are defined and include sustainable development issues, governance, respect for human rights and anti corruption practices.

2000Sonae’s environmental policy and environmental management systemThe Sonae Board of Directors formally approved the Group’s Environmental Policy and Environmental Management System (EMS). The former makes clear Sonae’s commitment to reconcile socio-economic development with environmental protection, based on the principles of eco-efficiency.

Environment Forum Sonae broadened the Environment Forum, to include for the first time Environmental Coordinators from all sub-holdings. It was a platform for sharing information, experiences and best practices across Group, and for challenging the sub-holdings to take action on environmental issues.

5. Main sustainability milestonesat the Sonae Group


Internal Audit reorganization and creation of Internal Audit and Risk Management Departments in the holding company and each sub-holding; set up of non-statutory bodies of Audit Commission and Risk Management Advisory Group.

2001Sonae annual conference on eco-efficiency125 group managers were present at this conference.

BCSD PortugalSonae became a founder member of the Business Council for Sustainable Development Portugal, and was invited to take on its presidency for the first three years.

1st Sonae Environmental Report issued for the year 2000In line with the commitment made in its Environmental Policy, Sonae with this first Environmental Report began a regular process of public reporting on its plans and achievements in relation to environmental management and performance issues.

2002Sonae annual conference on sustainable development175 managers from across the Group attended this annual conference.

The Environmental Forum organised a series of Workshops on Sustainable DevelopmentEach sub-holding ran workshops to stimulate ideas that could lead to specific actions. 59 managers from different functional areas in various sub-holdings participated.

20032nd Sonae environmental report issued for the year 2002Sonae continues to report its progress on eco-eficiency issues, by publishing a second environmental report . The report included environmental indicators from each sub-holding.

2000 to 2004Eco News A quarterly environmental newsletter – Eco News – was also published for distribution to all Group employees, available both in print and on the Internet, designed to increase environmental awareness and encourage best practices.

2004Sonae signs up to the United Nations Global Compact.

2005Signature of the World Safety DeclarationSonae SGPS signed the World Safety Declaration, a commitment to global workplace safety, at the DuPont Leaders Forum for Safety and Performance in Geneva in November 2005.

1st Corporate Responsibility Report from a sub-holdingSonae Sierra was the first company of the Group to publish a Corporate Responsibility report related to 2004 activity. This sub-holding has produced an annual report every year since then in order to respond to the expectations of its principal stakeholders.

2005/2006Sustainability ForumSonae broadened the focus of the Environment Forum to embrace Sustainability with the same goal of sharing information, experiences and best practices. Currently, the objectives of this Forum are under review in order to provide a vehicle for driving forward the Group’s sustainability strategy and actions into the future.

2006The conference “Sustainability - Perspectives and Challenges” took place in Lisbon with around 250 Sonae managers attending. The keynote speech was given by Bjorn Stigson, President of the WBCSD.

2007Sonae publishes the first Group Sustainability Report.


The Sonae Group is made up of different businesses, subject to different exposures to the markets in which they operate, distinct levels of competition, and various levels of influence from their respective stakeholders, which are also specific to each business. The result is that the businesses are moving at different speeds in the way in which they are incorporating environmental and social issues into their management practice.

The following pages describe some examples of best practice among our businesses. It is important to note that there exist a broad range of actions, each of which may be carried out by all sub-holdings, but which are not all reported upon in this document. Here, a selection of case studies that are most closely related to the main impacts of each business, are described.

6. Examples of Sustainability Strategy in action in the sub-holdings

The case studies below are a practical demonstration of the manner in which the risk management methodology described earlier has been applied in the Group, both on a Group wide basis and in individual sub-holdings.

Sonae Group Risk Management transversal project - an example:

Emergency and Contingency Plan for Pandemic Flu Risk

. Launch of a Group wide project and specific projects in each sub-holding and main businesses of the Group, with the goal of preparing and testing emergency and contingency plans to respond to the threat of a flu pandemic.

. On going actions to identify critical processes and people in each business, assess pandemic flu impacts and design action plans.

. Contacts with government departments and other health authorities, to share information and knowledge about pandemic flu contingency plans and other collaboration.

. Contract specialist consulting services of a major international health and medical services company to provide pandemic flu protocols and procedures and access to its web site.

. Acquisition of a quantity of antiviral, to maintain a preventive stock against a possible shortage of supply in case of a pandemic flu outbreak.

Risk Management6.1.

All sub-holdings, with the exception of Sonae Capital, will be issuing their own sustainability reports in 2007, in which readers can obtain more detailed information concerning objectives, improvements and the commitments made by each. This is the first report of the Sonae Group, and as such, we recognise that we still have a long way to go to incorporate benchmark international standards and to identify and collect relevant information for our stakeholders. This is a challenge which we face with confidence.


Controlling the Quality and Safety of Food ProductsThe quality and safety of products made available to customers is obviously a key issue for Modelo Continente, so that various measures have been implemented in the company in order to control them.

As an example of what has been done in relation to quality and safety in the food product area, Modelo Continente developed and implemented a product Quality and Safety Assurance System, through which the technical quality teams from the food and perishable product areas take actions in order to guarantee that products are made available to customers in accordance with defined quality and safety specifications.

These actions include among others, the preparation of technical product specifications, the control of documentation of origin, the quality control on delivery, and laboratory analyses of products on sale.

The control of documentation of origin is an important issue, since it allows products to be traced and identified from production/pick up until delivery of the goods to the company. In this documentation, hygiene guarantees from the originator are also included, which are mandatory by Portuguese law for certain types of products.

Also, laboratory tests are important to control the quality and safety of products made available to customers. Thus, Modelo Continente has been systematically increasing the number of these tests. In 2006, 25,141 laboratory tests were carried out, of which 3,888 were done by third party entities.

In order to support food Safety and Quality Control in warehouses and stores, specific training and manuals have been developed and distributed, which give clear and objective guidelines to teams to control product quality and safety.

Modelo Continente also carries out regular audits to its sites and premises with the goal of systematically monitoring food safety risks, ensuring compliance with legislation and to the Company food safety manual.

Modelo Continente own branded goods do not include Genetically Modified Organisms (GMOs)In accordance with its precautionary policy against possible environmental and food safety risks, Modelo Continente`s own branded goods policy exclude GMOs, whether in the product itself or in their composition. Compliance with this policy is assured through specific mandatory supplier contractual clauses.

Modelo Continente

Managing RisksConcerning the risk management activity, Modelo Continente has developed a business risk evaluation process from which was defined a matrix of company risks ( BRM - Business Risk Model ).Two practical examples of managing and controlling risks in the company follow:

Physical Risk Control Self Assessment In the Retail business, brand trust is fundamental: for four consecutive years Modelo Continente has been chosen as the most reliable brand in retail by Portuguese consumers.

One of the most probable causes of damage to brand image in relation to customers is a physical accident (e.g. fire, structural collapse, flooding). Because of this, Modelo Continente implemented a Physical Risk Control Self Assessment project to reduce the probability and impact of physical accidents in stores.

This project was carried out by the Risk Management Department of Modelo Continente which built an Intranet based application to support a Control Risk Self Assessment (CRSA) process, in order to assess the current level of physical risk exposure in stores.

All the requirements were identified internally by the Risk Manager with support from the stores team. Based on a list of issues that resulted from previous risks analyses and international standards, a checklist was developed, organized into the following four areas: Emergency, Fire, Intrusion and Security Training.

As a result of the project’s implementation, the following benefits resulted:

. Full coverage by stores (of which there are more than 400) of physical security risks, without the need to increase staff levels.

. Assessment of the current level of physical risk exposure faced by the company.

. Improvement in the risk management culture and awareness.

. Development of action plans for each risk identified.

. Ranking and prioritization of follow-up audits based on the higher risk stores identified.

. Identification of areas that need to be improved in a particular store, a given region or all stores.

. In the longer term, as knowledge increases, it will be possible to change the way that new stores are built in order to avoid structural physical risks.

The project was “Highly Commended” in the category of Most Effective Technology at the 2006 European Risk Management Awards.

Sonae SierraSonae Sierra innovates in Health and Safety via the PERSONÆ project.The project involved an investment of more than 6 million euros in consulting and training services alone.

For Sonae Sierra, safety is one of the key risk factors and a major area of concern at all levels and it is believed that a culture of anticipation can minimise the number of potential “accidents”. As a consequence of this, Sonae Sierra launched the PERSONÆ project which aims to foster a culture of anticipation in relation to safety, by integrating safety concerns into the mindsets of employees and other key stakeholders.

The first phase of implementation took place between September 2004 and March 2006. In this phase, the focus was put on actions in safety awareness and education. In organisational terms, the start up also involved the set up of a committee at Board level and working groups. The main importance of the PERSONÆ project lies however in its innovative approach compared to traditional safety systems, particularly in relation to technical procedures and audits.

In its first two years, PERSONÆ has involved more than 11 thousand people among employees, tenants, and suppliers in Sonae Sierra. Currently, Sonae Sierra’s shopping centres and offices prepare documents, seminars and workshops, conduct awareness visits to all shops and premises, which also involve suppliers, and correct non-conformance situations observed. Some of these regular meetings with these stakeholders can be about apparently simple attitudes, such as accident prevention drills. The aim is to encourage tenants to make this project an everyday work tool.

PERSONÆ is being successfully implemented in all of the company’s shopping centres and offices, in Europe and Brazil. The project won the Eco Award in 2006 in the “Corporate Social Responsibility - Internal Public” category from Amcham (American Chamber of Commerce), which was attended by the former United States Vice President Al Gore.

Its progress is being carefully studied by other sub-holdings in the Group with a view to taking advantage of potential synergies, and adapting the management model to other Group businesses though the development of the corporate Safety and Health function.

The third phase will start in September 2007, in which the scope will be broadened to also include the million daily visitors to centres in the dialogues that have been going on with employees, suppliers and tenants. Sonae Sierra aims to include all relevant stakeholders in this project.


Sonaecom

Sonaecom’s Business Continuity ProgramSonaecom has been implementing a Business Continuity Management Program.

This Program has five main phases: (a) understanding the business; (b) establishing recovery strategies; (c) developing Contingency and Recovery Plans, coordinated by an integrated Crisis Management plan; (d) establishing a Business Continuity Culture; (e) testing, maintaining and auditing the plans built.

The Sonaecom Program has a direct impact by providing a phased and integrated response to different types of risk, through the implementation of Emergency, Contingency and Recovery Plans, coordinated by a Crisis Management Plan.

Two examples are the Information Systems Disaster Recovery Plans, including the implementation of an alternative data centre to support critical activities of the mobile business, and the inclusion of the business continuity requirements (redundancy) in the new telecommunications network architecture planning.

. BCM Strategies Development

. Implementation Time and Cost Forecast (Capex and Opex)

. Strategy Advantages / Disadvantages

. Recovery Plans

. Crisis Management

. Sourcing (intra-organization and/or outsourcing providers)

. Public Relations and the Media

. Business Impact Analysis

. Risk Assessment and Control

. Establish BCM Focus

Business Continuity Management Approach

BusinessUnderstanding

StrategiesTesting

andMaintenance

Recovery PlansCulture

BCMProgramme

Management

Divulge and Implement program of: . Education . Awareness . Training

. BCM Plans Exercising

. Teams and Systems Testing

. BCM Audit and Maintenance

Sonae Capital

Contacto (construction and engineering company in Sonae Capital) implements an integrated safety, environment and quality system The construction sector has a number of very specific features, distinguishing it from all other business sectors, and is one with significant environmental impacts and where a higher risk of work accidents exists. We believe and are showing however that it is possible to counter this situation by taking actions to alleviate these concerns by the real and effective involvement of everyone involved in construction works, building a culture of prevention, safety and above all of responsibility. To that end, Contacto has focused its actions on implementing proactive preventive procedures, giving information and training to all those involved in the production process. Training sessions are given, particularly in the environmental, safety and health areas, which involve not only company employees but also sub contractor staff. All procedures are formalised and in accordance with the requirements of the Quality, Environment and Safety System which has obtained international certification according to the NP EN ISO 9001, NP EN ISO14001 e OHSAS 18001 standards.


Eco-Effi ciencyEnvironmental awareness and the role of the Group holding company to encourage eff orts to minimize consumption of natural resources while maintaining or increasing output, have always been explicit in the Sonae values and principles.

The focus on eco-effi ciency as good management and environmental practice has its origins in the group’s fi rst business, the manufacture of wood based panels, where measures were implemented to reduce the consumption of wood, and to increase the use of wood waste as a raw material.

This concern with natural resource consumption was extended to other business areas, and a group wide project was launched among all sub-holdings with the goal of increasing the level of integration of environmental management as a factor of diff erentiation into the overall management of each business, and of creating a competitive advantage.

Each sub-holding began to build Environmental Management Systems (EMSs) and structures, while synergies and experience sharing were encouraged through the Environmental Forum created for this purpose.

Many of the EMSs implemented in Group companies have won international certifi cation, and systems continue to be developed to quantify savings arising from eco-effi ciency projects. This is a challenging area, often requiring the recognition that returns on these investments will only be made in the longer term, but are those that can enable companies to identify new approaches to management and new opportunities.

Extract from Sonae’s Environmental Policy

“...The Sonae Group is determined to follow a path leading to Sustainable Development. It will do so by being pro-active in its work with the World Business Council for Sustainable Development, of which it is a full member, and by implementing increasingly eco-effi cient management systems within its own portfolio of businesses....”

6.2.


Modelo Continente

Putting Eco-efficiency into practice at Modelo ContinenteElectricity Consumption, Transport of Goods and Waste Disposal are the main environmental impacts of Modelo Continente. This sub-holding has been implementing practices and taking measures in these specific areas to continuously increase the level of eco-efficiency from its activities.

EnergyEnergy consumption on its premises, in particular electrical energy, which in 2006 totalled 271 GWh, is an issue to which Modelo Continente pays particular attention, promoting a rational and eco-efficient use of this resource.

Around 60 energy audits have been carried out, which have led to the implementation of a wide range of measures to rationalise consumption, as well as the use of more efficient equipment, computerised systems for managing consumption, the use of natural gas in baking ovens, the use of skylights to access solar light, and the use of hot fluids generated by air conditioning systems for heating water, among others. Some of the specific measures implemented include:

. replacing metallic iodide for fluorescent lamps (7% reduction);. changing conventional for electronic ballasts (5% reduction);. control of the pressure of condensation of refrigeration gas in accordance with external temperatures

(4% reduction);. installation of vertical and horizontal frozen food storage cabinets with doors

(3% and 2% reductions respectively).

Thus, despite growing demand for energy consumption, especially in the food sector, as a result of increases in the cold storage areas, and improvements in thermal comfort and store lighting, this has been offset by a number of reduction measures implemented, by the adoption

Energy consumption(GWh per 1000 m2 of sales area)

2006200520040.46

0.48

0.55

0.52

0.50.5

0.52

0.54

0.56

of management practices detailed in the “Energy Management Manual”, and by continuous monitoring of consumption.

Number of crates transported per km

2006200520040

2

4.765.13

5.73

4

6

8

CO2 Emissions per 1,000 crates transported

200620052004100

150

159149

134

200CO

2(Kg)

TransportThe management of the truck fleet which delivers goods to stores is carried out by modern and sophisticated management software, which allows efficiency gains to be made with a positive impact both in terms of fuel consumption and of greenhouse gas emissions, in particular CO

2.

Also, the type of vehicle used is controlled, using vehicles that are technologically and environmentally advanced, in order to minimize fuel consumption and emissions of pollutants to the atmosphere. All vehicles which entered service after 2003 are equipped with engines that comply with the Euro3 or Euro4 standard, which define maximum levels of consumption and air pollution emissions. Although these standards are not mandatory by law, they are part of Modelo Continente’s policy for the entire logistics fleet, controlled directly by the company.

Destination of waste generated

Composting 2%

Incineration 11%

TOTAL40,140 tons

Recycling 56%

Recovery 69%

Landfill 31%

Waste .Reduction

Reuse of Transport Packaging - The use of reusable transport packaging is in specific circumstances, an effective way of encouraging a reduction in waste generation. Modelo Continente led the introduction of the “Single Crate” into the supply chain of fruits and vegetables in the retail sector in Portugal. The “Single Crate” has Environmental Advantages, namely in terms of optimising transport and reducing waste generation. It is also made of recyclable plastic. At the end of 2006, 181 fruit and vegetable suppliers were using this new packaging, equal to the transport of an average of 684 thousand crates each month along the supply chain, an increase of 8% over 2005. The reusable crates are also being used for the supply of meat and fish to stores. In 2006, approximately 95% of meat and 70% of fresh fish was being transported in these reusable crates.

Reuse of Coathangers - the company has an ongoing programme of the collection of coathangers for reuse. As part of the programme, Modelo Continente collected 198 tons of coathangers in 2006.

.Recovery

In 2006, Modelo Continente generated 40,140 tons of waste, of which 69% were recovered. Recycling totalled 56% of waste generated.


Sonae SierraElectricity and water consumption, and waste disposal are three of the main environmental impacts of Sonae Sierra. This sub-holding has been taking measures to reduce consumption of electricity and to increase the level of recycled waste resulting from its activities.

Sonae Sierra is a “Carbonfree - The Seal of Climate Responsibility“ company, which means that it has made a strong corporate commitment to address and reduce climate change impacts.

For further details of the specific commitments involved in this initiative see http://www.carbonfree.pt/ .

Electricity Consumption Water Consumption

2006200520042002

kWh / m2 (mall + toilet area)

2003 2006200520042002

litres / visit

2003

4.24.3

3.64.2

not k

now

n

563594586

748755

Sonae Sierra develop its own Environmental Standards for Retail Developments (ESRD) toolESRD is an internet-based specification tool, developed by Sonae Sierra to help Sonae Sierra Project Managers and design teams to develop shopping centres that comply with Sonae Sierra’ s environmental principles and procedures. The tool’s principal aim is the implementation of best environmental practice across all of Sierra’ s new development and major refurbishment activities. A total of 188 standards are included in ESRD covering energy, water (effluent and use), waste, transport, indoor and outdoor air quality, ecology, materials, etc. The standards are the same in all countries, in which Sonae Sierra develops Shopping Centres.

The two main principles that support the standards included in ESRD are:

. Eco-efficiency, through improved design and architecture

. Continuous improvement by regularly updating the ESRD, thus ensuring that Sonae Sierra keeps up with changes in best practices and technologies available.

Campo Limpo Shopping Centre in Brazil wins ISO 14001 certification Initially, this Project aimed at implementing an environmental policy that would allow material costs to be reduced and optimised. However, thanks to the commitment of all those involved, including contracted labour, suppliers, and management, this project was also able to win ISO14001 certification for the construction phase of the project.

Various measures were taken for its implementation:An Environmental Policy was written in which the Campo

Note: For centres owned and co-owned, excluding tenants Note: For centres owned and co-owned, excluding tenants

Business ChainSuppliers Construction Waste Recycling Indicator(% of total waste sent for recycling or recovery)

Serra Shopping (2005)

90

62

86

LoureShopping (2005) RioSul (2006)

Recycling Rate

2006200520042002 2003

31%26%

21%19%19%

0%

Note: Total waste recycled as a proportion of waste produced

(% by weight)


Limpo Shopping Centre recognises that its activity has impacts on the environment, and that it has the responsibility of being pro active in dealing with the resulting challenges.

Processes involved in the construction of a shopping centre were analysed and also the best ways of improving them. From this analysis, procedures were proposed to put into practice measures to minimize, mitigate and prevent negative impacts that had been identified.

The greatest challenge found in the course of the project was to get across to staff the importance of the environment. Despite low educational levels of employees in the construction sector, each employee was aware of his/her contribution to the system. Security employees at the entrance to the construction site are the first to explain the company’s environmental policy to visitors by giving them a brochure. Stonemasons know the measures that they should take to avoid wastage of material and water on site. Heavy equipment operators are responsible for preventing soil and water contamination caused by spillages of fuel and lubricating oils. Chemical product operators are careful when handling these products having studied information given in safety leaflets.

Objectives, goals and achievements resulting from the Environmental Policy of the Campo Limpo Shopping Centre in Brazil

· Optimise use of natural resources· Minimise use of water

· Minimise use of wood by 5%

(to November 2006). 525,575 litres saved (through reuse of

water in foundation activities, use of water table and rain water to control dust in the atmosphere)

. The wood reutilisation rate was 48.5 %

· Minimise environmental impacts (pollution prevention) through appropriate waste management

. Recycle 20% of waste generated . The recycling rate achieved in the period was 39.2 %

· Minimise noise levels

. Minimise atmospheric emissions (dust)

. Restrict working hours next to the most vulnerable neighbours to minimise the inconvenience.

. Control atmospheric dust levels in relevant activities

. Reduction of two hours in noisy activities next to a residential building, work stopping at 20.00 instead of 22.00 hours. Start and finishing times are monitored daily.

. All dust generating activities are controlled by humidifying the places involved. Each week, photographs are taken to record the procedure.

Objective Goal Results

The architectural team, which followed up on the store construction works, was given responsibility for the environmental training and guidance of store tenants. The engineer responsible for the manufacture and purchase of materials carried out an environmental evaluation of suppliers and service providers. And all those involved had been informed of the Sonae Group environmental policy and of the need to ensure that the services they provided were optimized.


COMPOSTING ORGANIC WASTE

Following the success of NorteShopping’s segregation of waste organic matter, Sonae Sierra decided to extend this project to other centres in Portugal, namely Arrábida Shopping, MaiaShopping and CascaiShopping in the last quarter of 2005. In January 2006, the facilities were installed at GaiaShopping.

Each project starts with an analysis of the types of waste being produced, which lend themselves to composting. Then, special containers are distributed to tenants, who segregate organic waste before delivering it to the composting station.

With this initiative, Sonae Sierra has recovered about 620 tonnes of organic matter in Portugal, equal to 6% of total waste produced in 2005, at the four centres where this separation process is in place.

In 2006 we recovered 1247 tonnes of organic matter, representing 11% of total waste produced in 2006 in 8 centres.

MaiaShoppingInitial investment in equipment: 784 €Fixed cost of Organic Treatment (equipment and transportation): 0€/month

2006 Average Organic Waste production/ month: 210 €/monthExpected Cost Savings/ Year: 2,500 €

NorteShoppingInitial investment in equipment: 200 €Fixed cost of Organic Treatment (equipment and transportation): 366 €/month

2006 Average Organic Waste production/month: 1,466 €/month Expected Cost Savings/ Year: 13,200 €

Composting Organic Waste

GaiaShoppingInitial investment in equipment: not availableFixed Cost of Organic Treatment (equipment and transportation): 370€/month

2006 Average Organic Waste production / month: 192 €/monthExpected Cost Savings/ Year: 2,137 €

Arrábida ShoppingInitial investment in equipment: 500 €Fixed Cost of Organic Treatment (equipment and transportation): 370€/month

2006 Average Organic Waste production / month: 714 €/monthExpected Cost Savings/ Year: 4,100 €


Sonaecom

Improvements in electrical energy consumptionIn 2006, 94% of electrical energy consumption was for the mobile telecommunications network infrastructure, Sonaecom is aware that it needs to tackle this area, but it is proving to be very difficult since the infrastructure is very disperse, and economically viable alternative technologies do not yet exist.

Sonaecom installs and optimises Building Management Systems (BMS)Sonaecom installed BMS systems in Technical Buildings, Data-Centres, Offices and Call Centres. These systems make it possible to integrate and manage all equipment in a building, leading to energy savings and control over environmental conditions. All of these systems are subject to constant evaluation and adjustment in order to optimise the eco-efficiency of different systems, such as air conditioning, power supply and lighting.

Changing lampsThe substitution of halogen lamps by energy saving ones in Sonaecom’s retail shops led to a reduction of around 20% in energy costs, while maintenance costs will also be reduced due to the longer life of these lamps.

Other measures also include the installation of presence sensors, reflective film on glass windows, ceiling insulation, the installation of skylights, shaded areas and energy saving lights, among others.

Project GreenlightIn 2004, Sonaecom joined GreenLight, a voluntary European programme (http://www.eu-greenlight.org/) where public and private companies and other organisations commit to improve the lighting of their premises, always in cases in which the savings in energy justify investments made. The installation of centralized technical management systems as well as improvements made in the Sonaecom headquarters as part of the Greenlight project enabled direct energy consumption to be reduced by 6% between 2005 and 2006.

This project was undertaken with the goal of improving the lighting of the headquarters office building in Matosinhos which has a surface area of 4,760 m2, in which the following improvements were introduced:

. Installation of pre-timed pressure switches which allow staff to light up areas where they wish to work during hours in which the building’s main lighting has been switched off.

. Integration of the building’s lighting into the Building Management System. It allows the set up of time zones for lighting according to the hours of use of different areas and floors of the building.

With the improvements implemented, a considerable reduction has been noted in the number of hours that the

lighting system functions, leading to savings of around 1,100 €/ and 16,500 kWh per month. As far as indirect costs are concerned, Sonaecom has also managed to reduce related maintenance and air conditioning costs of the building.

Electrical and electronic equipment (EEE) Waste ManagementOptimus has different procedures to ensure the most appropriate final destination for the equipment that it sells, in accordance with the types of materials involved.Mobile phones that are handed in by customers at retail shops are sent to Fonebak PLC, an authorized waste and recycling operator that is ISO 14001 certified and is also EMAS registered as a specialist in the re-marketing of equipment. Sonaecom uses outdoors, internet and other communication media to inform consumers about the offer of 10 € for each mobile phone that is handed in at the time of purchase of a new one. Also, some electric and electronic wastes generated at Technical Assistance Centre facilities are being sent to an authorised Portuguese waste and recycling operator.

Each year, Sonaecom collects an increasing number of pieces of equipment in retail shops and sends them for recycling at Fonebak PLC.

The Electronic Invoice at OptimusThe electronic invoice - digital extract - launched by Optimus in 2003, has allowed costs and related paper consumption to be reduced by around 50%. This service also includes an analysis programme tailored to the specific needs of each customer, allowing more efficient management of the budget that each customer sets for telecommunications. The goal is to broaden the use of this service to 90% of customers.

200620052004

0

80,000

35,000

50,00058,00060,000

40,000

20,000

Equipment collected at retail shopsUnits

Sonae Capital

Troiaresort* - demolition work best practicesThe urban and environmental improvement of the Troia peninsula involved the demolition of 40% of previously existing buildings, including two tower blocks.

Several measures were taken in relation to waste management. The buildings to be demolished were emptied of reusable material and equipment and, if suitable, these were donated to charitable institutions. Then, the buildings were stripped of all hazardous and recyclable waste.

Since 98.5% of the total waste was made up of concrete and ceramics, a recycling facility was installed on site at Troia. The recycled material is being used in the construction work of the Troiaresort as a base for roads and for landscaping.

Waste Management at Contacto ConstruçõesWaste management at Contacto, a civil construction company operating in Portugal and Spain, gives priority to reuse and recycling. Some of the measures taken in this area are:

. the reuse of construction and demolition waste coming from the demolition of buildings and viaducts carried out on a motorway widening project;

. the placing of “eco-points” in offices to separate plastic, batteries, CDs, bulbs, toners and print cartridges;

. the setting aside in each construction site of an area for separating waste including specific containers for each type;

. the recycling of obsolete computer and electronic equipment (specifically computers, mobile phones and related accessories);

. the waterproofing and sealing of flooring in warehouses containing dangerous waste on construction sites in order to avoid soil contamination due to possible spillage;

. awareness and training actions to encourage the correct separation of waste.

*Troiaresort - a tourism complex, comprising hotels, apartments, villas, marina, casino, golf course and other leisure facilities under development by Sonae, located between the Sado Estuary Nature Reserve and the Serra da Arrábida Nature Park.

Destination of demolition waste(by weight %) 1 0.5

98.5

Storage on site for later reuseSent off site for reuse / recyclingLandfill


Business ChainThe Sonae Group has always sought to develop its businesses as an integral part of the communities in which it operates, so that it can act as a stimulus towards creating wealth and improving living conditions throughout the value chain. Sonae has given increasing importance to the way it relates to its suppliers and the kind of behaviour it expects from them. We view all our suppliers as business partners, and as such, encourage them to develop their activities in a more sustainable manner and implement management procedures which on a practical day to day basis comply with our environmental and social standards. The examples that follow demonstrate this approach. By signing up to the Global Compact, we have strengthened our commitment and recognise that, in view of our significant economic impact, we can contribute positively towards our suppliers also gradually adopting these best practices.

Modelo Continente

Modelo Continente supports its suppliersIn line with Group policy described above, Modelo Continente believes and takes a pro-active stance in building mutually advantageous solutions, particularly in the areas of logistical architecture, developing new products and concepts, as well as sharing information, thus enabling the company to continually improve its value offer to customers.

Modelo Continente introduced into Portugal centralised logistics and implemented best practices of ECR (Efficient Consumer Response), which include the sharing of information and joint management of product categories with suppliers.

Supporting the sustained development of its suppliers can take various forms. One important example has been its role in the setup and development of the “Clube de Produtores”

6.3.

. “Clube de Produtores”Modelo Continente set up the “Clube de Produtores” (Producers’ Club) in 1998, as a support structure to Portuguese livestock and agricultural production, which aims both to guarantee a steady supply of agricultural goods to hyper and supermarkets, and also to promote national production. The strategic objectives of the “Clube de Produtores” are therefore to promote national agricultural production, cultivated in accordance with the standards of quality and safety defined by Modelo Continente. For the producers, it offers a consistent and structured assistance to its members, while guaranteeing a means of ensuring the sale of their production. Modelo Continente invests in the training of the members of the Club in various areas of livestock and agricultural production, and also provides information concerning market trends and consumer demands, so that the sector gains competitiveness against a background of global competition.


Sonae Sierra

Sonae Sierra’s engagement with their suppliersBy using the Environmental Standards for Retail Developments (ESRD), Sonae Sierra has a tool which means that shopping centre design teams must integrate environmental issues starting from the design phase of the project. In the construction phase, the companies involved are also required to use Sierra’s Environmental Management System (EMS) manual for sites under development by Sonae Sierra. All steps possible are taken to obtain international ISO 14001 certification for all construction sites.

To help suppliers to meet the requirements of Sonae Sierra’s EMS, we provide the following support:

. Guidance and assistance to complete the necessary documentation and to help them prepare for audits, as well as undertaking internal compliance audits

. Environmental training programmes for designers and contractors.

Sonae Sierra carries out training sessions with their tenants and service providers on Environmental issuesIn 2006, Sonae Sierra carried out 100 environmental awareness and training sessions for tenants and service providers, with the goal of providing basic knowledge concerning the Sonae Sierra Environmental Management System to third party company employees. Every year, the proposed contents of the training are defined for each of the Centres, bearing in mind the level of implementation reached of the Environmental Management System and the Environmental Certification Process. The contents defined can include one or more of the following items:

. Environmental awareness meeting;

. ISO 14001 and Environmental Certification

. Thematic visits;

. Periodic meetings;

. Workshops.

The value of purchases by Modelo Continente in 2006 from “Clube de Produtores” members was 87.5 million euro.Activities of the Club:

. Technical support

. Participation in international trade fairs

. Protocols with the Institute of Agronomy, the Faculty of Veterinary Medicine, the National Zoo-technical Station among others

. Training actions

. Preparation of Programme Contracts in the fruit and vegetables area

. International technical visits

Promoting more environmentally friendly products

.“Protecção Integrada” (Integrated Protection)With this initiative, Modelo Continente promotes the use of natural organisms to combat crop pests, replacing chemical pesticides, and the use of environmentally friendly agricultural techniques. This is achieved by making producers aware of these techniques, and by several communication campaigns to promote these products among our customers. Currently, all fruit and vegetables bought from “Clube de Produtores” members are produced under “Protecção Integrada”.

.Organic productsOrganic products have arisen as a more environmentally friendly and sustainable method of agriculture, and at the same time safeguard intrinsic product qualities. However, their price is recognised as being the main obstacle inhibiting consumers. Modelo Continente is trying to reverse this trend by promoting the consumption of these products and encouraging the practice of this type of agriculture through the “Clube de Produtores”.


SonaecomSonaecom includes environmental clauses in contracts with suppliersIn order to manage risks throughout its value chain, Sonaecom includes clauses of an environmental nature in supplier contracts to ensure that environmental legislation and environmental factors, integrated into its environmental management system, are complied with by all of its suppliers. These clauses also state that Sonaecom can carry out technical audits on the supplier’s premises (of which 8 were conducted in 2006) to verify compliance with its obligations and the guidelines of Sonaecom, or to inspect any systems and equipment that have implications for the environmental management of Sonaecom.

In order to ensure compliance with environment laws and regulations, all Work Orders (requests for work issued to Sonaecom’s suppliers) include specific information concerning the environmental issues that are connected to that type of work (e.g. air conditioning system gases, lamps, oils, and other types of waste).

Innovation in Business ProcessesSupplier management solutions, which include BizFact and BizSuppliers, allow companies to implement simply and cost effectively a process that makes financial information available automatically to all Sonaecom internal users and suppliers. The Suppliers’ Portal was set up not only to allow suppliers to access their online current accounts but also to reduce the need for telephone contacts, and to eliminate the need to send payment confirmation orders to suppliers. In addition

to increasing supplier satisfaction, there has been a significant reduction in postal and stationery costs, and employee time savings.

They can access the status of invoices being processed in real time. The value of this project goes well beyond a simple reduction in paper consumption, since it has led to a fall of between 30 and 40% of costs associated with this business process and an increase in productivity.

Sonaecom`s Sales AgentsSonaecom’s sales agent network is a critical business partner. The goal of having the best sales force in the telecommunications sector led the company to concentrate on and actively participate in three important stages of sales agents’ careers: recruitment, training and incentives. Optimus Negócios, in the mobile phone business segment, has strongly invested in redesigning agents’ recruitment plans since the beginning of 2006. Today, two thirds of the recruitment needs for agents are met directly by Optimus, which supervises the process.

“Escola de Negócios Pontos Fortes” was launched in July 2006, and is focused on developing the skills, increasing the career life-cycle and tightening the relationship of agents with Optimus. The target of this school is not only sales people, but also administrative assistants and sales team coordinators. In only 6 months, in 2006, 368 people attended 69 courses. “Pontos Fortes” is also the name of the incentives programme, in which agents earn points for each sale made. These points can be traded in for prizes. Points can also be earned by attending the Escola de Negócios training courses. The objectives of this program are to increase motivation and agents’ career life-cycles. The average life-cycle of agents involved in this program is twice that of other agent organisations.

“Escola de Vendas Optimus” is another example, focused on the residential business, and taking action in Selection & Recruitment programmes, Training, Motivation and Performance Evaluation of the sales teams of our agents. Its mission is to create selling and coaching skills to build a strong commercial culture. In 2006, more than 60 agents were recruited directly by Optimus and more than 60 training sessions were organised.

“Academia Novis” is another project aimed at reducing the turnover of sales agents and improving selling and leadership skills. With actions focused on Recruitment and Selection, the challenge is to continuously improve results through focusing on the quality of the service provided through specialised, continuous professional training of our partners, thus contributing directly to their own business sustainability.


Sonae CapitalTroiaresort - integrating the environment into the value chainEnvironmental management is part of the entire value chain at Troiaresort. In construction work, in addition to compliance with legal requirements, sub contractors must ensure that Environmental Follow Up plans are implemented, which involves among other factors, the identification of environmental aspects relating to their activity, promoting measures that aim to minimise the effect of any negative impacts, give environmental training to construction workers, and measure and monitor environmental performance.

Checking up on the implementation of Environmental Follow-Up Plans by sub contractors is assured by operational control visits and internal and external audits, undertaken as part of the Troiaresort Environmental Management System (EMS), which is certified according to the international standard ISO 14001. The scope of the EMS, a pioneer in this type of project, covers the design, construction and operation of the resort.


Human CapitalHuman capital has been a fundamental factor in the growth of the Sonae Group. The Group’s values and principles make a number of commitments towards its employees by stating that it is responsible for implementing a human resources policy which is free from any kind of discrimination, for high levels of satisfaction among employees, providing opportunities for career development, training and education, and for providing a safe work environment for its own and third party employees.

The goal of these commitments is to give the necessary tools to staff to actively contribute towards the existence of a culture of permanent innovation and entrepreneurship.

This vision led to the belief that the challenges and key tasks for this most important asset of companies are to:

. fi nd the right people for the right job

. put confi dence in them

. empower them

. make them accountable and responsible.

A training policy is in place in the Group for all employees at all levels. Training covers the technical, behavioural and language areas. In the technical area, there has been a signifi cant increase in training relating to environmental, health and safety issues. Sonae has also supported some group managers to follow external post graduate and doctorate studies

The main guidelines of the Human Resources Policy across all sub holdings are:

. Equal opportunities for all employees;

. Attracting the right people for the right jobs;

. Ensuring the development of skills and career progression;

. Guaranteeing effi cient processes for performance management;

. Ethical behaviour in relation to staff , suppliers, the public in general and other entities with whom we interact;

. Encouragement of behaviour based on ethical principles: integrity, legal compliance, sustainability.

6.4.In order to encourage staff to take an active part in the planning of their personal and career goals and to align them with corporate objectives, a procedure called “Career Performance and Development Evaluation” is in place across the Group. This procedure allows the employee’s personal aspirations to be aligned with the goals of the company, and increases the motivation and productivity of employees. An induction and integration programme is given to all new employees in most companies, the goal being to integrate new staff into the company’s culture, thus ensuring that the company’s code and principles are maintained


Management of our human resources is based on:

. The development of global training programmes to create skills in a variety of areas;

. A global Policy of Performance Management, based on performance evaluation criteria;

. Qualifi cation of employees in accordance with their needs and those of the businesses.

“Learning is very important for people. At Sonae they have to learn and to be biased towards learning. “

“Attracting good people might be the most important asset of Sonae.”

“At Sonae there is no prototype. We don’t believe in ‘pensé unique’, which has been very much discussed in France and in Europe. We don’t believe in it. I do believe that we are different people ... Take advantage of diversity. Take advantage of knowing more.

“ .. do everything to get well educated, train yourself and prepare yourself to be always in the poll position for any new job or any new company. We don’t like to be in second place ... we want to be winners, and we have to take lots of poll positions.”

Belmiro de Azevedo, “Some Steps into the Future”. Sonae Indústria International Meeting

“Just as people need oxygen and proteins to survive, companies need a continuous renewal of ideas and knowledge that are in the minds of their employees. Companies have the duty to keep their knowledge updated and to pass it on to future generations. But knowledge on its own is not enough. It is absolutely key to “KNOW HOW TO DO” but it is also necessary to move on “TO DO”, permanently innovating in an environment of sustainable and sustained growth”

Belmiro de Azevedo, Values and Principles, 40th anniversary of Sonae, 1999


The safety of all our employees as well as the general public who use our premises is also an integral part of our risk analysis and internal procedures. In addition to various projects carried out by different sub-holdings, Sonae SGPS signed the World Safety Declaration in November 2005, which:

. is a visible commitment by industry to improve safety in the workplace

. establishes the right of everyone to a safe workplace

. affirms that industry will make real changes to reduce accidents and injuries

. promotes collaboration between companies

. pledges to report challenges, progress and successes within 3 years

. is a set of good management principles

Signatory companies are encouraged to cooperate in the search for better safety solutions and report the results of their efforts over the following three years at the XVIII World Health and Safety Congress which will take place in 2008.

Sonae takes on this public commitment in relation to all of its stakeholders.

2005 World Safety Declaration A Commitment to Global Workplace Safety

We:

Acknowledging that Safety is a fundamental component of quality of human life, a value to be upheld by individuals and organizations, Concerned that any lack of safety in the workplace and in the home carries with it a personal and social cost to individuals, families, organizations, communities and ultimately nations and their security and standard of living, Determined to address this vulnerability at the individual level and within our larger organizations and communities, Affirming our ability to affect real-world change to achieve an attainable goal of increased safety and injury reduction,

Have agreed at the DuPont Leaders Forum On Safety and Performance held on November 17th, 2005 in Geneva, Switzerland:

01. “Personal safety” as a human value transcends differences of geography, political affiliation, citizenship, ethnicity, religious affiliation, occupation, age and gender. Personal safety is a universal construct that can be supported in unique organizational and interpersonal ways.

02. Individuals and organizations have the right and a moral obligation to make a commitment to the improvement of safety conditions in their lives, in their communities and in their organizations. They can improve the quality of their own lives, and the lives of those who participate in larger social contexts (occupational, local, regional, national, geographic) with a commitment to improve safety.

03. The enhancement of safety in the workplace and in the home is an achievable objective that can be defined, evaluated and measured, despite differences of environment and setting.

04. The global nature of workplace and home safety calls for the broadest possible cooperation by all of industry.

05. The Organizations signing this Declaration, through its appropriate representative, today commit to reporting their challenges, progress and successes at the XVIIIth World Congress on Safety and Health at Work in 2008.

IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have signed this Commitment. DONE at Geneva, Switzerland this seventeenth day of November, two thousand and five.

Signed by Belmiro de Azevedo, Chairman of the Sonae Group


Modelo ContinenteWith more than 25,000 employees at the end of 2006, Modelo Continente is aware of the importance of its Human Capital for the good performance of the company, as well as its contribution towards the sustained creation of employment locally, regionally and nationally.

The company places great value on its employees, following policies of non discrimination, those that encourage career development based on demonstrated merit, while giving them permanent access to training programmes and providing a secure, safe and motivating workplace which encourages the performance level needed for the duties of all staff.

In 2006, a total of 1,050,955 training hours were given.The good social climate existing in the company, which is confirmed by the results of surveys carried out regularly among all employees, is a reflection of the good practices undertaken by Modelo Continente in the area of labour relations. Environmental and Sustainable Development TrainingThe environmental and sustainable development training programme at Modelo Continente is integrated into:

. The Company’s Management Course and into the Trainee Management Programme, which involves all store supervisors.

. Environmental training given to supervisory teams at the time of opening of new food stores.

. Environmental training given as part of certification processes of stores and warehouses.

In 2006, environmental and sustainable development training involved 1,309 employees (3,650 hours).

Hygiene, Health and Safety at WorkModelo Continente, in accordance with the Group’s H&S management policy, has a constant concern for the work and health conditions of its employees, with several ongoing projects involving preventive actions. Through its Medical Centres and Hygiene and Safety service, the company has progressively increased its involvement in relation to Prevention of Work Accidents and Health matters. During 2006:

. 637 audits were carried out.

. 160 emergency drills were carried out, the goal being to put emergency plans to the test, as well as emergency support teams.

. 80,000 hours of training were given at work stations.

In Food retail stores, a coordinator for Hygiene and Work Safety was appointed. In 2006, a coordinator was also appointed for the non food retail area.

In warehouses, a programme of gym at work has been implemented, the goal being to improve the body posture of operators.

Sonae SierraErgonomic standards during 2007During 2005, Sonae Sierra launched a new project aimed at developing and gradually implementing best practice ergonomic standards across all its relevant activities. The need arose in recognition of the wide ranging environments in which staff work - ranging from Head Office to centre management office staff and security control room employees. Overseen by a cross-functional Working Group made up of both staff and external experts, the standards will include the following issues:

. Lighting levels and controls

. Noise levels

. Space requirements

. Furniture (desks and chairs)

. Furnishings (carpets and paint)

. IT equipment and accessories

In 2006, 427 jobs were analysed in Portugal, and this work will be extended to Spain in 2007. These reviews involve the study of design, construction, and also the specific tasks of the employee, together with a personal interview to verify existing needs and the gaps which exist in relation to defined standards. On the basis of the findings, Sonae Sierra will implement a long term action plan to address issues of non-compliance. At the same time, Sierra’s aim is to embed the ergonomic standards into standard safety and health procedures to be complied with at all sites and offices in all countries where the company operates.

Sonae Sierra uses Chronos - a learning tool from the WBCSD - to give training to around 700 employees on sustainabilityAt the end of 2006, Sonae Sierra began a programme of training in Chronos, a tool developed by the WBCSD, aimed at transmitting in a simple, interactive and realistic way, the essential issues that sustainable development involves, giving particular attention to the role of the private sector in the entire process. The Chronos training programme was adapted to the specific requirements of Sonae Sierra and delivered to all its staff in all countries of operation via CD-ROMs.

In 2006, during a series of information sessions led by Sierra employees, the contents of the CD ROMs were discussed interactively with a total of 528 employees (285 employees in Portugal, 82 in Spain, 29 in Italy, 24 in Germany, 22 in Greece, 4 in Holland and 82 in Brazil).


SonaecomTraining as a strategyThe mission of the Sonaecom Learning Centre (SCLC) is to contribute towards creating an environment that develops career potential, as well as developing and consolidating the skills of Sonaecom Managers, which are essential for business development.

SCLC aims to include all employees, so that various programmes exist aimed at different stages of career development. Learning courses cover people, strategic and project management, as well as other critical areas for business development, such as marketing, negotiation and interpersonal skills. Partnerships established with leading Portuguese universities guarantee not only that the subjects covered are up-to-date, but also that greater credibility is given to the training provided. Partnerships are in place with the following Universities: EGP - Escola de Gestão do Porto (Porto School of Management), UCP - Faculdade de Ciências Económicas e Empresariais da Universidade Católica Portuguesa de Lisboa (School of Business Studies at the Portuguese Catholic University in Lisbon) and AESE - Escola de Direcção e Negócios (School of Management and Business). Since its launch in January 2005, the SCLC has been enthusiastically received by employees, who have repeatedly confirmed the interest of contents, as well as the importance of training for career development. Up to the end of 2006, 19 different training courses had been given, involving 450 employees and 25,600 training hours.

Sonaecom’s Code of ConductThrough its Code of Conduct, Sonaecom promotes and encourages behavioural rules and principles to be observed by members of statutory entities and all employees, thus contributing towards ensuring ethical behaviour throughout the organisation. As part of this Code, Sonaecom has set up an Ethics Committee, whose responsibilities include ensuring that any doubts by stakeholders are clarified, and reporting and dealing with situations that involve any violation of the Code. The Code covers issues ranging from integrity, transparency, respect, social responsibility, environmental commitment, health and safety, confidentiality and use of privileged information, to the management of conflicts of interest, and communicating irregularities in relationships with Customers, Suppliers, Competition, Public Authorities, Shareholders, Market, the Community, the Environment, and Staff.

Corporate Responsibility Awareness CampaignsAware of the importance of Internal Communication to disseminate the corporate culture throughout the organization, Sonaecom is using various communication channels and tools aimed at providing effective

dissemination of information, and through them, influencing behaviour and attitudes, engaging employees in company strategy and goals.

Building awareness of Corporate Responsibility among employees has been one of the main challenges over the last few years. To achieve this, Sonaecom has implemented several internal initiatives, such as Internal campaigns, “Give a hand to the environment“ (water and energy consumption reduction, paper recycling campaign, waste differentiation campaign), “Ideas contest “ (to encourage discussion and implementation of eco-efficiency ideas among all employees) and “Gil Day” (to promote the collection and reuse of toners and ink cartridges). In August 2006, an issue of the Sonaecom internal magazine - BOOM - was dedicated to Corporate Responsibility and several other articles concerning Corporate Responsibility appeared regularly to inform and create awareness among employees. Sonaecom has an internal e-letter called Eco-report to increase knowledge concerning the Sonaecom Environmental Management System. We are also actively involved in external initiatives such as campaigns to collect clothes, working with the Red Cross, and blood and bone marrow donations, etc.


Stakeholder DialogueThe Sonae Group has always taken into account the global and regional context in which its businesses operate, so that its management can respond to the evolving and changing needs of its stakeholders.

Over the last few centuries, western society has grown more educated, while we have witnessed the transformation of a land, work and capital based society into one which develops and innovates, based on knowledge and capital. In the same period, and as part of this trend, Non Profit Making Organisations have come to play an important and active role in civil society, in particular in private sector activities in relation to human and social rights, and the protection of natural resources.

This movement was at the origin of a new paradigm for society, in which business must deliver to society not only financial returns, but considerably more, in order to contribute towards social cohesion, environmental protection and global sustainability.

It is in this context of understanding the expectations of our various stakeholders, identifying the factors that are relevant for them and thus identifying new approaches and new business opportunities, that Group companies have built relationships with their principal stakeholders. The following are examples of how methodologies have been developed and put into practice to achieve this.

6.5.

Modelo ContinenteModelo Continente cares for, listens to and communicates with thousands of consumers and suppliersModelo Continente, is in contact with thousands of consumers every day in its stores and with hundreds of suppliers, and has to take on extra responsibility for the way in which it interacts with the communities in which it operates. Modelo Continente has thus given special attention to its relationships with customers and suppliers, and in its contacts with the community through various forms of support and good practice, as demonstrated by the following summary.


Stakeholders Dialogue

Customers

2.4 million/week3,090 million € / year 2006

Interacting every day with thousands of customers, a process which in itself provides a constant and useful dialogue, Modelo Continente uses various means and methodologies for consulting its customers and the communities close to its stores, the goal being to systematically improve the services provided and their value proposal.

100,000 customers are listened each year.

The company also has a structured procedure for managing suggestions and complaints, through which it interacts directly with the customer, allowing the service provided and value proposal to be adjusted.

Employees

25,255 (end 2006)337 million € / year 2006

Periodically, Company Social Climate surveys are carried out, covering all employees, allowing opinions concerning the company, their work, and the work atmosphere. The last survey carried out showed that more than 70% of staff felt secure in the company, and that more than 78% intended to continue working at Modelo Continente.

An internal magazine called “Correio da Distribuição” is periodically issued with varied and relevant internal and external information.

Availability of an Employee Portal on the Internet “Portal do Colaborador”, where all employees can access a variety of information according to their interests such as career opportunities, training, organisational and labour/legal information, among others.

Suppliers

3,500 (year average)2,720 million € / year 2006

Day to day relationships with suppliers including relevant information sharing support the growth of the business. The Company set up the Suppliers Portal on the Internet, enabling information sharing and improvement in the interface between Modelo Continente and Suppliers.

There is a constant focus on developing partnerships to implement new projects/products, which can bring improvements concerning the expectations/needs of consumers and the general public.

Community

Community investments 5.9 million € / year 2006

Development and implementation of a wide number of initiatives actively involving the community. - of a social nature (involving local communities: in actions aiming at supporting institutions

giving health care and/or support to underprivileged groups; and in actions to promote cultural and sporting events);

- of an environmental nature (promoting awareness and improvement in the attitude/actions of the community concerning environmental and sustainable development issues).

Cooperation with municipalities and other local or regional government entities.

Investors

Dividends 55 million € (paid 2006)

Periodic and timely information about relevant facts concerning the company, ensuring equal treatment to all investor and financial stakeholders.

Availability of a website, publication of the company’s annual report and accounts, periodic earnings announcements, and relevant Corporate Presentations. Investor Support Office, which is a department with the technical resources required to respond to specific requests from investors, the University community, and national and international retail sector analysts.


Sonae Sierra

Sonae Sierra has been working on a structured stakeholder dialogue based on international best practice recommendations, such as the voluntary AA1000 standard, in order to identify and engage with its stakeholders

Sonae Sierra questioned their internal and external stakeholders about its Environmental and Social Risks and Opportunities

Important Stakeholder Groups Methods and outcomes of engagement in 2006

Investors and Financial Analysts Regular meetings, presentations, and published quarterly financial reports to communicate Sierra’s financial performance and risk management practices.

Employees

Corporate-wide and country specific communications, including printed employee magazine (Horizons) and intranet news. Performance evaluation plans and access to HR support.Staff have been individually consulted on specific issues (e.g. Safety & Health), and several schemes were introduced to stimulate ideas and reward innovative suggestions for new ways of working.

Tenants Specific intranet site Sierracentres,network. Meetings and training sessions, with a strong focus in 2006 on Safety & Health and Environmental management.

SuppliersIn 2006, a survey was carried out aimed at getting feedback from suppliers about Sierra’s CR practices and to evaluate their own CR policies. Questionnaires were sent to a number of Sonae Sierra’s largest Portuguese, Spanish and Italian suppliers.

VisitorsVisitor surveys are conducted in all our owned and co-owned centres. Visitor surveys undertaken at three of our largest centres in Portugal found that 69% of visitors considered our centres to be concerned about environmental protection.

Government AuthoritiesEngagement with all municipalities, local and regional bodies, as part of the planning and development process. Particularly close relationships with specific entities such as the police and emergency services.

Local Communities

Developed qualitative studies to assess the impact of the construction phase of centres on local communities and identify potential improvements. Geotracking surveys are undertaken in managed centres to analyse the impact of the shopping centre on residents and consumer demand patterns in the local area.

Media

In 2006, Sonae Sierra received a total of 1,309 cases of CR-related press coverage. Of these, 84% were positive, and 16% were negative and related mainly to social issues (e.g. in Portugal, complaints from tenants employees about their employment conditions). In regard to environmental issues, a total of 142 cases of positive press coverage were received, compared to 33 negative cases concerning this aspect of Sierra’s performance.


Concern about energy is today the biggest environmental issue. All environmental factors are expected to become more important over time, according to Tenants.

Main results of the research carried out in 2006 concerning the greatest risks and opportunities for Sonae Sierra

Stakeholder Issue Greatest Risks & Opportunities

Tenants and External Stakeholders Economic

Business Strategy and planningBusiness EthicsFinancial Impact on key stakeholdersLocal Economic Benefits

Quantitative research with 45 tenants in 6 countries Social

Visitor SatisfactionTenant SatisfactionCommunity CareSafety and Health

Qualitative phone interviews with 39 external stakeholders Environmental

Land UseEnergy ConsumptionTransport Waste ProductionEmissions to air, land and water

Employees Economic

Business Strategy and planningBusiness EthicsFinancial Impact on key stakeholdersCorporate Governance and Risk Management

Web-based research with 545 employees, across all 6 countries where Sonae Sierra operates (Portugal, Spain, Italy, Germany, Greece and Brazil)

Social

Visitor SatisfactionTenant SatisfactionCommunity CareEmployee Relations

Environmental

Energy ConsumptionEmissions to air, land and waterWaste ProductionLand Use


Sonaecom

Stakeholder and issue analysisSonaecom carried out an internal consultative exercise, the main aim of which was to actively involve most of group management in sustainability strategy and reporting activities. Representatives from corporate areas and from the group’s companies participated and contributed towards identifying relevant stakeholders, the main sustainability issues, and decided on the main areas for action.

Two internal workshops, held in September 2006 and January 2007, were part of these activities, consolidating Sonaecom’s approach to sustainability and establishing action plans. As a result, Sonaecom identified eight relevant stakeholder “families” with each family containing a long list of stakeholders, as illustrated in the box above.

Composition of Sonaecom Stakeholder Families

Financial Entities. Banks. Analysts

. Shareholders and Investors

Employees. Permanent Employees. Short-term contracts. Temporary Employees

. Trainees

. Outsourcing

. Internal Consultants

Regulatory and Governmental Entities. ANACOM - Telco regulator. Competition Authority

. European Union

. CMVM - Securities Market Commission. Legal courts. Government

Community. Immigrants. Population living close to antennae . Special needs associations

. Media

. Opinion Leaders & Makers

. Scientific Community

. NGOs

. Police and Firefighters

. Information Illiterates

Clients and Prospective Clients. Corporate. Small and Medium Enterprises (SME). Public Administration

. SOHO

. Residential. Senior citizens

Suppliers. Handsets. Outsourcing. Network Infrastructure

. Network Equipment

. IT Infrastructure

. Printing

. Content providers

. Mktg agencies

Business partners. Sales Channels. France Telecom

. Technology providers

. Media providers

Industry . Competitors . Sector Associations

The relevant sustainability issues consolidated during the internal consultation process were then clustered into ten issue groups. The issue clustering allowed Sonaecom to identify the issues of interest for two or more stakeholder families.

Issue Groups

. Human resources.

. Corporate Governance

. Compliance with legislation and rules

. Health and Safety

. Environmental Management and PracticesInte

rnal

. Trustworthy information concerning economic / financial management practices and results

· External communication regarding sustainabillity practices and results

· Digital inclusion & responsible products / services· Calamities and disaster management support. Partnership

Exte

rnal

Social Climate SurveyThe opinions of Sonaecom’s employees are critical and provide extensive feedback on what is important to change and implement in the organisation. In 2006, Sonaecom repeated its employee satisfaction survey, which has helped to guide the implementation of a number of initiatives, the results of which provide the drivers of Human Resources management policies, which will further increase satisfaction levels among employees. In this third survey, 1,466 employees took part out of a total of 1,997 or 73%, up 4.41% on 2005.

Sonae Capital

Troiaresort – relationships with stakeholdersFrom the time that the Troiaresort concept was defined, the developer has established communication channels with different stakeholders, in particular, public authorities, NGOs, students and the general public.

The Strategic Environmental Assessment carried out by IMAR – the Maritime Research Institute, was one of the factors that contributed towards developing the design of Troiaresort. The developer, designers and consultants, particularly in the environmental area, worked together interactively with the fundamental goal of integrating the environmental component into the different projects making up the Troiaresort.

Initially, these studies focused on the urban plan, which defined the main restrictions imposed on the Project and which guided the development of the resort concept. Later, different environmental impact studies were carried out, some of which are still underway, that evaluated the land use at the detailed planning level. Lastly, the Environmental Management System of Troiaresort was implemented. Due to the media interest generated by the Troiaresort project, Sonae Turismo is frequently contacted by different stakeholders. Since 2000, 45 requests were received concerning environmental information, 69% of which came from universities and research institutions. All of these requests were answered.


Community InvolvementSonae believes that it can make a contribution towards helping to solve social problems that are part of the society in which it operates. Such activities are undertaken both by the Belmiro de Azevedo Foundation and also directly by the sub-holdings of the Group, in accordance with the identified needs related to their operations.

Through active dialogue with local organisations and continued investment, we seek to support and improve local community facilities, services and cultural events. Each sub-holding tries to identify the linkages between its core business and the needs of the community, in order to implement projects and activities that are mutually beneficial.

Across the entire Group, companies have become involved with the community through a range of initiatives spread across the areas of health, culture and the environment. Many of these actions have become projects with a nationwide profile in Portugal such as Mission Smile of Modelo Continente. Others are being operated on a daily basis by various companies, and even if they have less media attention, their real importance lies in their capacity to bring something new and positive both to those participating and to those who are receiving support.

Modelo ContinenteModelo Continente cares for and is heavily involved in the communityInvolvement with and support for the community, good citizenship and social cohesion, have always been part of Modelo Continente’s way of doing business. A wide range of initiatives that have been carried out over the

6.6.

years clearly demonstrate this, in such varied areas as health, education, culture, sport, the environment and educational activities. Some of these are next described:

“Missão Sorriso”

Health

EntertainmentActivities

Education

CultureEnvironment

Sport

COMMUNITYINVOLVEMENT

Sport Zone’s Fathers’ Day Race

Women’ s Race

“Unite to Smile” Race

SchoolsSupport Program

Computers for Schools

My 1st Best Seller

Modelo Theatre Nights

Leopoldina Musical

Modelo Christmas

Batteriesfor Books

Shopping bags with 3 colours of recycling

Support to:Portuguese Skin Cancer AssociationPortuguese Cardiology Foundation


.Through “Missão Sorriso” (Mission Smile), Modelo Continente helped to equip 25 paediatric unitsBy selling Leopoldina children’s books and CDs in all Modelo Continente stores, funds are raised that are then used to buy medical/scientific, educational and entertainment equipment for paediatric units in hospitals that are within the catchments areas of these Hypermarkets. Between 2003 and 2006, “Missão Sorriso” raised more than 2 million Euro to support 25 paediatric units and hospitals with more than 400 items of equipment donated.

.Modelo Continente involves 680 thousand schoolchildren in projects that link reading to the environment“Pilhas de Livros” (Batteries for Books) is an initiative aimed at schools with children between the ages of 3 and 15. The aim is to encourage recycling of used batteries, while at the same time promoting the pleasure of reading by offering books to school libraries. This initiative, launched in 2004 and repeated every year since, has allowed more than 12 million used batteries to be collected during this time. In 2006, 5,600 schools and more than 680,000 schoolchildren took part, and around 30,000 books were donated to schools.

. Modelo Continente encourages new authors“My 1st Best Seller” is a competition promoted by Modelo Continente with the aim of discovering new literary talent in Portugal. It is open to anyone who has not yet pub-lished a book. The winner has his/her book published and sold in Modelo Continente stores.

.Modelo Continente gives the opportunity to the more isolated regions of Portugal to have access to theatreGiven that culture has a relevant impact on the development of society, Modelo Continente supports access to the theatre for the populations in the more isolated areas of Portugal. The “Noites de Teatro Modelo” (Modelo Theatre Nights) bring culture to these communities through theatrical performances specifically created to be performed outside, travelling throughout the country and free for everyone. In 2006, performances took place in more than 70 locations, with 55,000 spectators participating.


Sonae SierraSonae Sierra has a strong interaction with the community in countries in which it operates. Some examples are:

Fund Raising“Ajuda de Berço” in Portugal

This association continues to play an active role in supporting pregnant women in financial difficulties and for children between the ages of 0 and 3. Donations were collected totalling € 32,190.

Gil Campaign in Portugal

Gil mascots raised funds for the setting up of Home Support Units. Donations totalling € 63,500 were collected.

Environmental and Safety EducationEnvironmental Education at Tivoli Shopping in Brazil

In April 2006, Tivoli Shopping launched the project “Awareness through art: portraying the environment with the eyes of an investigator” with the objective of raising awareness among children, teenagers and adults about environmental concerns and in particular the conservation of water resources. The project welcomed around 100 students.

Dos Mares Shopping Centre in Spain

Sonae Sierra, organised training for 2,000 children covering the environment and safety. During a guided visit, the school children were given training about waste separation and recycling, basic rules of the road, emergency exits, information points, escalators and Safety & Health. This is an on going action in Dos Mares, and is being replicated in many other shopping centres of Sonae Sierra’s portfolio, including Brazil.

SonaecomSonaecom clarifies doubts about electromagnetic fieldsOptimus is supporting a project called monIT, together with other operators and the Portuguese Telecommunications Institute. Its objective is to provide relevant information about Electro Magnetic Fields (EMF) associated with mobile communications and the general public, such as:

1)Basic concepts related to electromagnetic waves, known exposure limits, bibliography, relevant references, etc.

2)Results of measurements carried out by the project team in areas close to base station aerials, in public locations all over the Country.

To view more information, please consult:http://www.lx.it.pt/monit/

The general public has available information from a competent and credible source, which is also the biggest specialist in this area in Portugal.

Sonaecom keeps abreast with the latest available scientific results and developments to clarify any questions raised on this matter.

2006200520042003

0

15

5

10

20

25

30

19 19

29

14

EMF - Requests for information


During 2006, we received 14 requests for information on the subject: 10 reports were prepared and sent to people living close to antennae, in 6 of which we included measurements made in the locations involved, while we gave clarification directly to 4 people who telephoned the call centre.

SmileOne of the corner stones of the company’s social contribution is its involvement with the community through Smile, Sonaecom’s Voluntary Team. Since its inception in December 2004, around 22% of employees of Sonaecom companies have taken part in voluntary activities which cover initiatives in a wide range of areas (solidarity, health, support to handicapped people, and child support). Smile carries out these activities all year round, through a series of on going activities such as support to schools, hospitalized children, and old people’s homes, and also awareness events such as blood donations, bone marrow collects and good environmental practices. Among the institutions with which Sonaecom has already worked, are “Aldeias SOS”, the “Legião da Boa Vontade”, “Acreditar”, “Obra do Frei Gil”, “Casa do Caminho”, “Ajuda de Mãe” and the “Red Cross”, among others. In 2006, involvement in Smile was broadened to include members of employees’ families.

A Smile with ICTIn partnership with the FDTI (Foundation for the Communication of Information Technologies), Sonaecom took part in the ICT Paediatric project. The purpose of this is to furnish paediatric areas of public hospitals with technological infrastructure to allow hospitalised children to enjoy leisure moments and spend time with family or friends. It is aimed at children between 2 and 14 years old, hospital technicians, volunteers and family

members of the children involved. The project, which will last for two years, is carried out by jointly implementing infrastructures (multimedia computers with broadband Internet connection), and leisure and training contents (leisure and training solutions for hospitalised children and specific training for hospital technicians and family members). The latter training is aimed at guaranteeing effective supervision of the children in their use of the computer and communications equipment. By the end of 2006, Sonaecom had worked with three hospitals and equipped them with fifteen Kanguru connections and six 3G mobile phones (Video-Call). Sonaecom also sponsors all of the communications made with this equipment.

Optimus provides SMS solution for the Ministry of EducationSonaecom has an established track record of innovation in messaging platforms, and this experience has enabled the company to use mobile technologies as a tool to reduce costs and increase efficiency of communications. Optimus, working with the Ministry of Education in Portugal (Department of Human Resources and Education), has been developing a pioneer project related to the 2006 placement of kindergarten workers and teachers in primary and secondary schools.


Sonae CapitalEnvironmental education activities in Troiaresort Environmental education activities increase awareness among the community of environmental issues. At Troiaresort, these activities have been designed with the goal of encouraging public involvement concerning the sustainability of the area. For this reason, they are planned to attract a wide ranging public audience, in particular people from different age groups, and take place in different locations, ranging from beach to dunes and forest. The majority of those participating are schoolchildren between the ages of 6 and 14, but the range of activities have been increasing each year, and has led to higher education students attending as well as tourists and nearby residents. In addition to the environmental educational activities, a beach board was placed on the beach designed to increase environmental awareness of users by providing information about the special features of Troia, in particular the sand dunes, endemic plants and wildlife.

Optimus provided a service that allowed teachers to find out, via SMS, the latest updated lists of candidates who have and have not been placed for the following academic year. To access the service, the teacher only needs to send an SMS, and then receives by return an SMS with information regarding his/her placement (whether or not he/she was placed, at what school, etc.). From the user point of view, the service has the following advantages: speed, convenience and the wide availability of the medium used (mobile phone).

1st Phase - 23,184 sms (80% of which were answered in less than 4 sec)2nd Phase - 10,954 sms (95% of which were answered in less than 1 sec)


Throughout this report, we have stated that Sonae Group companies should look at the risks that they face as potential business opportunities.

New environmental challenges and opportunities arise through both the need to incorporate environmental issues into the day to day management of companies, and also through the fact that new environmental regulations, for example in the area of energy production, may also be the source of new business activities.

This has been the rationale underpinning the activity of TP - Sociedade Térmica Portuguesa, SA, a company within Sonae Capital, which, in partnership with other companies, has been developing the wind power and cogeneration businesses, thus identifying new clusters of economic activity, and factors of differentiation and competitiveness within Portugal.

The Troiaresort Project also fits in with this approach. This emblematic project, which is important for Portugal, was developed with the goal of reconciling the economic, social and cultural growth of the region with the protection and preservation of specific environmental and archaeological aspects of the area covered by the project. In this resort, forests, endemic species and Roman ruins are an integral part of the search to maximise the financial return of the project.

This approach was based on developing a project which aims to set itself apart by being different, and able to take advantage of the existing natural characteristics of the area, while always preserving the biodiversity as a cornerstone of the project. Thus, an area which previously had a set of risks linked to the existing urban infrastructure and various complex regional environmental and social issues, has been transformed into a business opportunity, differentiated by its management approach, which focuses on urban, social and environmental upgrade and improvement.

Sonae CapitalSonae is part of a partnership to produce 4% of total electricity production and 25% of all wind power energy in PortugalThe growth of wind power energy in Portugal over the next 6 to 8 years will be closely linked to the consortium “Eólicas de Portugal” which has won a public tender offer from the Portuguese government for a lot of 1,200 MW of new wind power to be installed through to 2013.

The Sonae group, through TP - Sociedade Térmica Portuguesa, SA, is part of a consortium which includes other wind energy promoters such as Enernova of the EDP group, Finerge, a company owned by the Endesa group and Generg. Another partner is the German manufacturer of wind turbines, Enercon, world leader in the production of the latest generation of wind turbines. Enercon will develop an industrial project the goal of which is to set up a wind energy production cluster in Portugal.

ENEOP - Eólicas de Portugal, SA will build and install 49 wind farms from the North to the South of Portugal, which will in all produce 2,700,000,000 kWh per annum, equal to around 4% of total electricity production in Portugal, and 25% of the country’s total wind power energy production, and which is sufficient to supply the domestic energy needs of more than 2,000,000 people, almost a quarter of the country’s population. The electricity is produced with a 100% renewable and clean resource, avoiding the need to import fossil fuels such as

New Risks transformed into New Markets and New Businesses

7.

coal or natural gas, and thus emission to the atmosphere of more than 1 million tons of greenhouse gases, such as CO

2, each year.

Innovation, Synergies and Business Opportunity:the Wind Turbine Industrial Cluster in Viana do CasteloIn conjunction with the installation of wind farms, ENEOP will develop an industrial project, which will be the heart of a new cluster for the manufacture, installation and maintenance of wind turbines, using state of the art technologies, and will be highly competitive in the global market for the latest generation of wind turbines.

The project to be implemented in Viana do Castelo will include five units producing components and raw materials. The industrial complex will have other competency centers such as a research and development unit, and training, logistics, service and maintenance centers.

Over and above the investment directly undertaken by ENEOP, the industrial cluster will include the involvement of 29 companies which will supply all the goods and services necessary for the manufacture of wind turbines, and the installation and maintenance of the wind farms. Overall, the cluster will create around 1,800 direct jobs, and will export more than 60% of its production. The investment involved in “Eólicas de Portugal” will be around 1,700 million euro, and will be a key structural project for


Unidades Valores Anuais

Energy Statistics

Electricity Produced MWh 39,600

Steam Supplied to Continental Mabor ton 98,000

Natural Gas Consumption m3 12,500,000

Energy Efficiency

Electrical Yield 31%

Overall Yield 83%

Equivalent Electrical Yield 73%

Eco-Efficiency

Primary Energy Saving 17%

Natural Gas Consumption Saving m3 2,600,000

CO2 Emissions Avoided kg 6,100,000

Continental Mabor Cogeneration Plant

The cogeneration plant, Enerlousado, has led to a saving of around 17% in the consumption of natural gas compared to that which would be used for the same production of electricity separately, equivalent to a reduction in CO

2

emissions of 6,100 tons per year, thus contributing towards efforts to reduce greenhouse gas emissions to the levels that Portugal has committed to in the Kyoto Protocol.

the entire Minho-Lima region in terms of economic and social development.

Partnership between Sonae and Endesa (through TP SA and Finerge) builds a cogeneration plantIn 2006, TP S.A and Finerge designed, constructed and started up a cogeneration plant at the multinational tyre maker, Continental Mabor, in Lousado, Famalicão.

For the manufacturing plant of Continental Mabor, cogeneration is a means of rationalising energy consumption, since the production of electrical energy that takes advantage of the heat produced by combustion, means a more efficient use of fuel, in this case natural gas. In other words, there is a saving in fuel consumption in a cogeneration plant compared to that necessary to produce the same quantities of thermal and electrical energy separately.

The environmental added value of this Project comes basically from the high efficiency of the cogeneration electricity production process. The plant has an overall energy yield of 83% and an equivalent electrical output of 73%, significantly higher than the output of a conventional combined cycle, natural gas electricity generation plant, which is around 55%.


TroiaresortTroiaresort is being developed in an area which previously had a number of risks relating to urban development carried out in the past, environmental restrictions and social issues. However, these risks have been transformed into a business opportunity. The area’s biodiversity and heritage are considered to be factors that differentiate the project, and which are capable of creating value and that can be capitalised into new tourism products and services.


N

Marina

Central Area

Beach Area

Golf and Hotel Resort

Pine tree reforestation

Between 2000 and 2006, around 8000 wild pine trees (Pinus pinaster) were cut down due to a disease - the wild pine wood nematode. In the Environmental Management Programme for 2006, one of the goals was to replant 50% of the pine trees cut down. This goal has been achieved and it is now expected that the remaining trees will be replanted during 2007.

IMAR - Linking Troiaresort to Research IMAR - Institute of Marine Research is an NGO whose founder members include the majority of Universities in Portugal that carry out research into the Marine Sciences. Since 1998, IMAR has been working with Troiaresort, coordinating the Marina and new Ferry Harbour Environmental Impact Assessment. In 2001, it began to carry out the environmental monitoring of Tróia. The main conclusions arrived at by the IMAR team are the natural accretion of the western side of the Tróia peninsula, and the fact that the project’s development appears to be having no significant negative impact on the environment. A number of positive environmental aspects have been detected, in particular the reduction of the pressure of humans on the salt marsh bird life due to control of visitor access. Also noteworthy has been the construction of off ground boardwalks, which have encouraged sand dune recovery and the re-colonisation by endemic plants of these habitats.

Bat Shelter

Job Creation When fully operational, Troiaresort will create around 4,000 direct and indirect jobs.

Troia GolfIn order to encourage eco-efficiency at Troia Golf, plans are underway to upgrade the irrigation system, including a new pumping station, and to improve the golf course lakes, in particular by waterproofing the lake bottoms.

Troiaresort


Beach FillThe sand taken from excavations in the Central Area is being used for beach fi ll in the area next to the Roman Ruins. The main goal of this work is to effi ciently protect this cultural heritage which was showing clear signs of deterioration.The beachfi ll was designed by IMAR in conjunction with the US Corps of Engineering.

Bat ShelterA free-tailed bat colony, with around 120 bats, was found in an unfi nished tower block prior to its demolition. A new bat shelter was designed and built, which includes structural elements from the demolished tower, to ensure the best conditions for the colony. Soon after the demolition, in September 2005, about 20 bats were found in the new shelter, and this number has remained steady, which suggests an excellent outcome. In fact, in most documented similar situations, the occupation of alternative shelters tends to take between one to two years after the loss of the original ones.

Golf

Since 2000, a protocol has existed with the National Forestry Department to manage the forested area of the Troia peninsula. As part of this protocol, steps were taken to combat the pine tree nematode and other existing diseases, and to control and eradicate exotic species that are negatively impacting local eco systems, with the goal of preserving biodiversity.

New Ferry Harbour

Roman RuinsThe Roman Ruins of Troia are listed as a National Monument. A protocol has been signed with the IPA (Portuguese Institute of Archaeology) and IPPAR (Portuguese Institute of Architectural Heritage) for the preservation and improvement of the monument.

Eco resortIn order to promote the biodiversity of the area which is included in the Natura 2000 Network, the Eco resort project takes into account several aspects such as:

. the removal of a dam, built in the early 1900’s for agricultural use, that will allow the local salt marsh habitat to be recovered,

. 3 freshwater lakes that will encourage the presence of new species, in particular ducks and the purple gallinule (Porphyria martinica),

. the wader community in the Caldeira lagoon is so numerous that, for some species, the population is greater than the total numbers that inhabit the entire Sado Estuary Nature Reserve.


GlossaryAA1000Developed by AccountAbility (an international professional institute dedicated to the promotion of social, ethical and overall organisational accountability), this is a standard providing the necessary methodology and tools to design, implement, evaluate and communicate quality dialogue with stakeholders.

Carbon dioxide ( CO2 )

A naturally occurring gas, and also a by-product of burning fossil fuels and biomass, as well as land-use changes and other industrial processes. It is the principal anthropogenic greenhouse gas that affects the Earth’s radiation balance. It is the reference gas against which other greenhouse gases are measured and therefore has a Global Warming Potential of 1.

Climate changeClimate change refers to a statistically significant variation in either the mean state of the climate or in its variability, persisting for an extended period (typically decades or longer). Climate change may be due to natural internal processes or external forcing, or to persistent anthropogenic changes in the composition of the atmosphere or in land use.

Co-generationThe joint production of heat (often in the form of steam) and power (usually in the form of electricity).

Corporate ResponsibilityBusiness contribution to Sustainable Development.

Eco-efficiencyA business concept developed by the WBCSD with a view to the creation of new and better goods and services using fewer natural resources, and causing less pollution along the entire value chain.

Electrical Equivalent EfficiencyEqual to cogeneration electricity produced divided by the total fuel consumed in the process, from which is subtracted the fuel necessary to produce the thermal energy from cogeneration. This measure is directly comparable with the electrical efficiency of conventional power stations.

Electro magnetic fieldsElectric fields are created by differences in voltage: the higher the voltage, the stronger will be the resultant field. Magnetic fields are created when electric current flows: the greater the current, the stronger the magnetic field. An electric field will exist even when there is no current flowing. If current does flow, the strength of the magnetic field will vary with power consumption but the electric field strength will be constant.

EMASThe Eco-Management and Audit Scheme, a voluntary initiative set up through the European Union, designed to improve companies’ environmental performance.

EmissionsIn the climate change context, emissions refer to the release of greenhouse gases and/or their precursors and aerosols into the atmosphere over a specified area and period of time.

Energy efficiencyRatio of energy output of a conversion process or of a system to its energy input.

Environmental Impact AssessmentA means of ensuring that environmental considerations are taken into account at the planning stage of major projects, and required by law for certain types of project.

ErgonomicsThe study of the relationship between workers and their environment, especially the equipment they use.

Genetically Modified OrganismsA genetically modified organism (GMO) is an organism whose genetic material has been altered using techniques in genetics generally known as recombinant DNA technology. Recombinant DNA technology is

the ability to combine DNA molecules from different sources into one molecule in a test tube. Thus, the expression of certain traits, the phenotype of the organism, or the proteins it produces, can be altered through the modification of its genes.

Greenhouse gasesCollective term for those gases in the atmosphere that absorb long wave infra red radiation emitted from the earth’s surface, such as CO

2, Methane,

and CFCs. These gases can be generated by human activities or naturally, and are responsible for heating up the earth’s atmosphere.

Gross Value Added (GVA)

The difference between the value of output and input in an economy.

OmbudsmanA term that was originally used to describe an official who investigates citizens’ complaints against the government or its servants, and which is nowadays a role created in some companies to deal with complaints from stakeholders.

RecyclingReprocessing of recovered materials for its original or other purpose, including composting but excluding energy recovery.

ReinsuranceReinsurance is a means by which an insurance company can protect itself against the risk of losses by transferring risk to other insurance companies. Individuals and corporations obtain insurance policies to provide protection for various risks (hurricanes, earthquakes, lawsuits, collisions, sickness and death, etc.). Re-insurers, in turn, provide insurance to insurance companies.

Renewable energyEnergy sources that are sustainable within a short time frame compared to the Earth’s natural cycles, and which include non-carbon technologies such as solar energy, hydropower, and wind, as well as carbon-neutral technologies such as biomass.

SOHOSmall Offices and Home Offices, a customer segmentation classification commonly used in the telecommunications business.

Sonae SGPSThe official portuguese nomenclature for the Sonae holding company

Sub-holdingA holding company within the Sonae Group, which directly or indirectly holds shares in related or associated undertakings in defined economic sectors.

Supply chainThe various activities related to or developed by a company with the purpose of meeting the needs of its clients, ranging from relations with suppliers to production and sales cycles up to the final stage of distribution to the end consumer.

SustainabilityA concept which involves companies, organisations and countries finding an appropriate balance between economic, environmental and social factors in the course of their growth and development.

Sustainable DevelopmentForms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.

WWF World Wildlife Fund, a global environmental conservation organisation.


GlossaryFor more information about sustainability in Sonae’s sub holdings, please go to:

Modelo Continentewww.modelocontinente.pt

Sonae Sierrawww.sonaesierra.com

Sonaecomwww.sonae.com

PropertySonae SGPS, S.A.

Head QuartersLugar do Espido, Via Norte, 4470-909 Maia, Portugal

ConsultantsTriple Value | Sustentare

Graphic DesignDematos Designers, Lda

PrintingPrinted on Accent White paper

Accent White paper is manufactured with 75% recovered fi bre, obtained using 25% urban solid waste, 50% from the sawmill industry, and 25%

chlorine free fi bre

Printed using vegetable oil based inkPrinted by: Lidergraf, an ISO 14001 Environmentally Certified company


SGPS, S.A.Head Office: Lugar do Espido, Via Norte, 4470-909 Maia, Portugal

www.sonae.pt

Share Capital: EUR 2,000,000,000Maia Commercial Registry and Fiscal Number 500 273 170

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