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 ), Sonae Sierra (development, management and ownership of shopping centres), Sonaecom (fi xed and mobile telecommunications, media, Internet and IT services), and Sonae Capital (, 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 S&SI1 Development Sports Goods Insurance Brokerage Computers Portugal and DIY Risk Management Seed and Risk Capital Kidswear Travel Agencies 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 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 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 17 500 Centres in the Tourism and Hotel sector. store sponsored a school in books from the Público its area with a donation of collection to schools of Each year, around 100 young people have the Cerco group, as part of the chance to receive job training 500 books the project “ of the Future”

Modelo Partnership e-Schools Programme with Portuguese senior universities networks Optimus will distribute laptop 22 000 computers with Kanguru Internet We promote the University teaching of access senior students Whenever a new Modelo Hypermarket is opened, a new participating Senior University student is sponsored Investment of 116 million euros 14

... / 2006 School Prizes and Study Grants (x000 euros) Belmiro de Azevedo Foundation 47 000 47 46 000 46 44 000 44 43 000 43

150 000 42 Grants made 41 300 40 200 40

600 School Prizes 50026

Grants and School Prizes values Average 00 01 02 03 04 05 06 (until 99) 15 Health and Science

Continente through Mission Smile raised 2 000 000 euros, for the purchase of equipment for 25 paediatric hospital units

IPATIMUP Support Support to COTEC 450 00 euros 158 300 euros for oncology and onco-biological for innovation programmes in research, HR development in forestry protection these areas and divulging relevant information to the public

Sonaecom equips 3 paediatric Sonae Sierra promotes Public Health by carrying hospital units with access to out ophthalmic, diabetes, and the 3G mobile network, involving an rheumatoid arthritis check ups in investment of 19 600 euros Shopping Centres

Partnership with the Portuguese Skin Cancer Association Distribution of 5 000 sunshades on Portuguese beaches 16 Community Donations

Belmiro de Azevedo Foundation

... / 2006 of which 27 000 000 euros were food 450 institutions supported in Portugal The sub-holdings donated products given to charities 29 000 000 euros through the and 2 000 000 euros Belmiro de Azevedo Foundation were other donations 17

Sonae Sierra Shopping Centres are visited by millions of , and have worked with a range of charities to raise money.

More than 150 000 euros raised for various causes:

“Ajuda de Berço” AMI Support to this charity to continue its work of supporting The total amount raised was given to help with the pregnant women without means of support and children up to construction of an orphanage for 125 children in Sri Lanka, the age of 3. victims of the tsunami. 32 200 euros 22 500 euros

Gil Foundation Fire Brigades Funds raised for the set up of Home Help Units. Fund raising for the purchase of individual fi re protection suits for fi refi ghters. 63 500 euros 35 500 euros 18 Voluntary Work

Since 2004 2007/2008 SMILE PORTO of the FUTURE Sonae Voluntary Work Project More than 20% of Sonaecom Employees carry out voluntary work in schools that are part of the Cerco employees have taken part in voluntary do Porto Schools Group. work involving 12 institutions. 8 schools 2 400 school children, from 3 to 18 years old. 19

As the Sonae Group has grown, it has been able to balance the need for business leadership, personal development and competition, with integrity, ethics and involvement with the community.

The Sonae values and principles ensure the driving force behind growth and the belief in a shared future that form the foundations of the Sonae culture.

Environmental Awareness

Social Conscience

Community Involvement

Trust

BUSINESS SOCIAL CULTURE RESPONSABILITY Ethics

INDEPENDENCE RESPONSABILITY FROM TO OUR EMPLOYEES POLITICAL POWER Equal Opportunities Independence

Career Development Co-operation Health & Safety 20

Sonae Group Values and Principles

BUSINESS CULTURE RESPONSIBILITY TO OUR EMPLOYEES Governance Equal Opportunities To accept as a principle of good management the duty of our To adopt a Human Resources Management policy based on Board Members to welcome and encourage forms of control by treatment that is free from any form of discrimination. our various stakeholders whether they be shareholders or their representatives, fi nancial and capital market analysts, suppliers, Career Development employees or customers. To off er high levels of satisfaction to all employees, by encouraging employees to participate in career training, education and Market Leadership information programmes. To develop capabilities that guarantee value creation, and focus our businesses on achieving market leadership. Health and Safety To develop training programmes and internal operating procedures Readiness to change to manage the prevention of work related risks, as well as promoting To maintain, as a fundamental characteristic of the Group’s culture, the satisfaction and motivation of employees, in order to ensure a a permanent readiness to change. safe and healthy work environment. Loyalty and Professionalism To base daily management practice on professionalism, loyalty, frugality, risk management, and the adoption of management methods that swiftly detect and correct adverse situations. Transparency To adopt best practices, such as obtaining the opinion of employees and outside observers, which allow a systematic evaluation to be made of the reliability of the fi nancial performance of its businesses and the degree of compliance with the SONAE values and principles. Innovation To cultivate a passion for creativity, based on a habit of looking ahead and experimenting with new ways of doing things with the conviction that the best solutions are in the future and not in the past. SOCIAL RESPONSIBILITY INDEPENDENCE FROM POLITICAL POWER Environmental Awareness Independence To constantly improve the environmental performance of its To avoid fi nancing political organisations and parties, as well as products, processes and activities. avoiding involvement in party political matters, but to reserve the right to express ourselves publicly in the way we see fi t, in order to Social Conscience defend Sonae’s Values and interests. To develop communication and information programmes covering internal projects and activities aimed at employees, the Co-operation media, opinion makers and the general public. Abailability to co-operate with government whenever suitable opportunities arise, for example in design and execution of Community Involvement development projects, whether they are for the construction of To increase knowledge of the social environment surrounding physical infrastructures or service based, such as the preparation the businesses in order to cooperate with and support cultural, of new legislation. sport and social institutions, in ways which are appropriate. Trust To develop relationships with all business partners, in particular customers and suppliers, which are based on high standards of trust. Ethics To establish relationships with third parties based on principles of honesty, integrity, and transparency, rejecting any form of corruption. SONAE SGPS, S.A.

Head Offi ce: Lugar do Espido, Via Norte, 4471-909 Maia, Portugal www..pt

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