Social Responsability Actions Sonae SGPS, S.A. 01 We are fully aware that our main mission is to create economic value, founded on our values and principles. Ethical management of our businesses, developing our business partners and continuously demanding competence, innovation, loyalty and competitiveness, are factors that we consider fundamental to the development and modernisation of the economy. This is the way that we have been generating and distributing wealth and is our principal contribution to the economic and social progress of the communities in which we operate. We frequently report on our wealth generation and the positive impact this has, but we rarely mention our actions in the area of social responsibility, unless they are directly related to the sustainability of our businesses. In this brochure, we present a series of initiatives that have resulted from our involvement in the search for solutions to the problems that aff ect the communities in which we operate. We have consistently been following a policy of concentrating our support on projects that can deliver long lasting benefi ts. This less well known side of our activities also gives me great pride and I am convinced that this feeling is shared by all of you. Maia, September, 2007 Paulo de Azevedo 02 Sonae SGPS, SA, founded in 1959, manages a diversifi ed portfolio of businesses. The portfolio includes Sonae Distribuição (food and non food retail), Sonae Sierra (development, management and ownership of shopping centres), Sonaecom (fi xed and mobile telecommunications, media, Internet and IT services), and Sonae Capital (tourism, engineering services, real estate, insurance brokerage, risk management and seed capital). Sonae is currently the largest private non-fi nancial Portuguese group. Sonae SGPS* 100% 50% 51,92% 100% Sonae Distribuição Sonae SierraSonaecom Sonae Capital Food and Non Food Retail Shopping Centers Telecommunications Services Hypermarkets Sierra Investments Mobile Tourism Supermarkets Sierra Management Fixed Engineering Consumer Electronics Sierra Development Media Services and Real Estate Apparel Sonae Sierra Brazil S&SI1 Development Sports Goods Insurance Brokerage Computers Portugal Portugal and Spain DIY Risk Management Greece Seed and Risk Capital Kidswear Germany Travel Agencies Italy Portugal Pharmacies Brazil Spain Mobile Communications Romania France Brazil Portugal * Sonae SGPS 47,06% Free Float in December 2006 1 Software & Systems Integration 03 Key Business Indicators (for the year 2006 ) 4 384 Millions of Euro Turnover 33 181 Number of Employees Direct Employment 4 937 Millions of Euro 4 536 Millions of Euro 82% to Suppliers Distributed 13% to Employees Economic Value* 4% to Investors 1% to the State 401 Millions of Euro Retained Gross Value Added Equal to 0,8% of ** (GVA) Portuguese GVA *Economic Value: an indicator of the value created by the Group. **Gross Value Added (GVA): one of several available ways of calculating the value of goods and services produced in our economy. 04 Our employees In 2006, Sonae employed: 67% women Average Annual Remuneration 33 181 people >> 33% men 15 786 euros One of Sonae’s ingredients for success is the quality of its human resources, made up of a team with a strong sense of leadership and which thrives on the constant challenge of reaching new levels of success for the businesses. Human resources management is based on: . Developing training programmes which promote the personal and professional development of employees; . A human resources evaluation policy that stimulates and rewards excellent performance. 05 Training At the Sonae Learning Centre (SLC) 19 062 employees received training at the SLC > 100 000 hours of training At Sonae Distribuição 1 050 000 training hours given to 25 000 employees | 3 650 training hours in the environment and sustainability theme At Sonae Sierra Chronos Programme 36 241 hours of training to 570 employees | Programme in Sustainability developed by the World Business Council for Sustainable Development totalling 1 995 training hours At Sonaecom 48 512 1 871 16 522 training hours given to employees | training hours covering Management and Behavioural studies 06 Health, Safety and Hygiene at work Sonae SGPS Sonae signs the World Safety Declaration Document that has the objective of setting targets and defi ning criteria for evaluating safety improvements introduced into the workplace As part of its social protection policy, all full time employees have Life and Health insurance Sonae Distribuição 637 audits carried out 160 emergency exercises with the goal of putting emergency teams to the test 80 000 hours of job training 340 safety drills carried out over the last two years Cascais Continente First Hypermarket to win Health and Safety at Work Certifi cation from APCER 07 Sonae Sierra PERSONÆ Project Investment of 6 million euro in consultancy and training. Project that aims at developing a culture of prevention and preparation to handle accidents that may arise in order to protect everyone who has contact with the Company. 70 000 people involved to date including employees, shop keepers, suppliers of goods and services. Goal: Reach “Zero Accidents”. The project won the Eco Award in the “Corporate Social Responsability - Internal Public” category from Amcham (American Chamber of Commerce). Ergonomic Project 427 jobs analysed in Portugal Sonaecom Safety policy at Sonaecom is enforced by teams with ongoing training in emergency procedures using the latest equipment. 119 employees received training in Hygiene and Safety totalling 1 180 hours 08 We look after the environment Our responsibility to the community also means acting in a way that has strict respect for environmental protection, which demands the implementation of management systems that are increasingly more eco-effi cient and the setting of increasingly ambitious targets for recycling and the reduction of emissions. At Sonae Distribuição Changing light bulbs | Changing electronic ballasts Reduction in energy consumption of 7% Reduction in energy consumption of 5% CO2 emissions 10% reduction for every ||The reuse of packaging materials rose by 8% 69% of waste generated 100 crates transported was reused or recycled 684 000 reusable packages used The Reuse Project Environmentally friendly Customer Shopping Bags Reuse of coat hangers left by customers at check out coun- Introduction into the food distribution sector of 100% ters of the various brands degradable plastic shopping bags 198 tons of coat hangers reused/recycled 09 At Sonae Sierra First company in the Shopping Centre sector, at an international level, to have a certifi cation for its Environmental Management System (EMS), in accordance with ISO14001. Currently the Company already certifi ed 14 shopping centres in the construction stage and 11 shopping centres under operation. 2 Recycled waste increases from | Electricity consumption per m drops 26% to 31% by 5,2% At Sonaecom Changing light bulbs reduces Centralised Technical Used mobile phones collected in Digital Invoice Statements led to a ||Management reduces direct | energy consumption by 20% stores rose from 50 000 to 50% drop in paper invoices electricity consumption by 6% 58 000* *This indicator refers to used equipment collected in stores as part of a mobile phone exchange campaign. This means that many of them are reused and not recycled. At Sonae Capital Rebuilding of Tróia Recycled Waste 40% 98,5% of existing buildings > of demolition waste was recycled and were demolished reused in construction 10 Our Community Involvement The priority areas which have been the target of Sonae support are Culture, Education, Health and Science (Research and Technology) and Social Solidarity. Culture Founder Member of the Serralves Foundation Founder Member of the Casa da Música ... / 2007 Support totalling 700 000 euros 200 000 since foundation Support plan for the period 2007 to 2009 of 500 000 euros per year 11 Other support Calouste Gulbenkian Foundation Cooperativa Árvore Portuguese Photography Exhibition Pedro Cabrita Reis Exhibition Amândio Silva Exhibition Support for purchase of the Alcídia and Luis Viegas Belchior Photograph Collection ... / 2006 Some examples: The Belmiro de Azevedo Foundation > S. João National Theatre New Portuguese Philarmonic Orchestra 1 400 000 Júlio de Resende Foundation Cultursintra Foundation euros Casa Comédia Theatre Casa de Mateus Foundation in cultural support Modelo Theatre The Seven Wonders of the World My 1st BEST SELLER Protocol signed with the IPPAR A Continente initiative involving the More than 110 000 spectators in 113 publication and sale of the 1st novel performances, given in small communities More than 25 000 Modelo Hypermarket written by young authors without any customers visit Portuguese monuments previous work published 12 Education A Público initiative at Schools Establishes a teaching link with schools, and aims at encouraging interest in reading by younger people. Publishing of documents, magazines and training in schools. Organize a Media Week, Portuguese Competition of School Journalists and publish the public website at www.publico.pt/pubnaesc Investment of 80 000 euros Batteries for Books Donations of Computers to Schools Involvement of 680 000 school children 5600 Schools in 5 600 schools 1 500 computers off ered Collection of 13 000 000 batteries by Modelo Hypermarkets 70 000 books off ered to schools by Modelo Hypermarkets 13 Everything to Read Sonaecom Sonae Turismo Protocols signed with Schools and Training Every Continente donates