CONTENTS I - INTRODUCTION 1 II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS 4 III - FINANCIAL REPORT 9 IV - FINANCIAL STATEMENTS 19

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2 CONTENTS I - INTRODUCTION 1 II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS 4 III - FINANCIAL REPORT 9 IV - FINANCIAL STATEMENTS 19 V - NOTES TO THE FINANCIAL STATEMENTS 24

3 I - INTRODUCTION

4 GOVERNING BODIES (2015/2017) The Board of Directors Chairman Member Member Member Member Member Vasco Maria Guimarães José de Mello João Pedro Stilwell Rocha e Melo João Pedro Ribeiro de Azevedo Coutinho António José Lopes Nunes de Sousa Daniel Alexandre Miguel Amaral Michael Gregory Allen Member Manuel Eduardo Henriques de Andrade Lamego * Member Member Fernando Aboudib Camargo António José Louçã Pargana Member Miguel Athayde Marques ** Member João Filipe Maia de Lima Mayer ** Member Emanuel José Leandro Maranha das Neves ** * Managing Director ** Independent Directors Board of the General Meeting Chairman of the Board Secretary Luís Rua Geraldes Tiago Severim de Melo Supervisory Board Chairman Members Francisco Xavier Alves Tirso Olazábal Cavero Joaquim Patrício da Silva Alternate Member External Auditor Diogo da Gama Lobo Salema da Costa Pricewaterhousecoopers & Associados, SROC S.A. represented by César Abel Rodrigues. Alternate External Auditor Carlos José Figueiredo Rodrigues ROC nº1737 Company Secretary Tiago Severim de Melo I - INTRODUCTION INTERIM REPORT 1 ST SEMESTER

5 Statement of Compliance Under the terms of paragraph 1-c) of article 246 of the Securities Code, and in compliance with legal and statutory provisions, the Board of Directors hereby submits the condensed financial statements and interim management report relating to the first half of 2017, in the firm belief, to the best of its knowledge, that the information contained therein was prepared in accordance with relevant accounting standards, providing a true and fair view of the assets and liabilities and the financial situation of the issuer and that the management report contains a faithful account of the information required. Additional Information Under the terms of article 8 of the Securities Code, Brisa Concessão Rodoviária, S.A., informs that the financial information report for the first half of 2017 disclosed to the market was prepared according to the International Financial Reporting Standards (IFRS) and was not subject to any Audit Report issued by an independent auditor. São Domingos de Rana, 22 August 2017 I - INTRODUCTION INTERIM REPORT 1 ST SEMESTER

6 II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS

7 A1 4 A8 Marinha Grande Figueira da Foz A1 5 Mira A1 7 Leiria Matosinhos A28 Espinho N14 Maia A20 Porto Gaia A4 A1 A41 Av eiro A43 Gondomar Cantanhede Pombal Coim bra BRISA CONCESSION Concession's characteristics Economic indicators (1 st half of 2017): Operating revenues: M A3 EBITDA 1 : M EBITDA Margin: 75% Number of employees: 14 A1 A4 1 EBITDA = Operating Results + Provisions, Amortisation, Depreciation, Adjustments and Reversals A14 Figure does not include income associated with the construction service A1 A5 A10 A13 A6 A2 N 0 50 Kilo me ters BCR's concession totals km, comprising 12 motorways including the future access to the New Lisbon Airport. The network subject to concession is almost entirely built; BCR presently operates 11 motorways, covering a total length of km, of which km are tolled. The network will be fully completed following the construction of the A33 motorway, i.e the access to the New Lisbon Airport, which is currently on hold. The network runs from North to South and East to West. It includes the country's main road axes, such as the coastal corridor and the Lisbon-Madrid link. It also includes important circular roads around the metropolitan areas of Lisbon and Oporto. Following to the latest contract negotiated with the Portuguese State, the concession will end in December II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS INTERIM REPORT 1 ST SEMESTER

8 Length (Km) Tolled Toll Free Total 2x1 lanes 2x2 lanes 2x3 lanes 2x4 lanes A1 Autoestrada do Norte A2 - Autoestrada do Sul A3 - Autoestrada Porto - Valença A4 - Autoestrada Porto - Amarante A5 - Autoestrada da Costa do Estoril A6 - Autoestrada Marateca - Elvas A9 - Circular Regional Externa de Lisboa A10 - Autoestrada Bucelas - Carregado - IC A12 - Autoestrada Setúbal - Montijo A13 - Autoestrada Almeirim - Marateca A14 - Autoestrada Figueira da Foz - Coimbra (Norte) Total Traffic on the network In the 1 st half of 2017, economic activity remained strong, with GDP and Private Consumption expected to show significant growth rates. This favourable macroeconomic environment fuelled sustained traffic growth over all motorways forming part of the BCR Concession, with Average Daily Traffic (ADT) growing 7.4% YoY. Traffic volume in BCR network during the period amounted to vehicles / day. This ADT growth was led by an impressive organic growth of 7.7%. The fact that several holidays in 2017 fell on less favourable days (as far as traffic is concerned) and the loss of one day in 2017 (2016 was a leap year), had a negative impact on traffic growth figures in this semester. Despite these negative effects, traffic continued to evolve favourably, growing 6.8% (it was the 5 th consecutive semester with traffic posting growth rates between 6.5% and 7.0%). The opening of the Marão tunnel had a positive, albeit modest, contribution to traffic growth. II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS INTERIM REPORT 1 ST SEMESTER

9 1H 16 1H 17 Vehicles per km (VKM; growth YoY) 7.3% 6.8% Breakdown:...Organic growth 6.2% 7.7%...Calendar effect 0.6% -0.5% Other (inc. leap year) 0.5% -0.4% ADT Like-for-like (growth YoY) 6.7% 7.4% All motorways in the concession continued to perform positively, particularly the A9 motorway (partly due to the growing saturation of IC17 / CRIL) and the A14 motorway, where traffic fell sharply in the 1 st semester of the previous year following a temporary road closure. Change in the Average Daily Traffic (YoY) by toll road 15.7% 11.8% 6.3% 8.9% 7.9% 6.4% 6.5% 8.9% 8.9% 8.3% 9.0% 7.4% A1 A2 A3 A4 A5 A6 A9 A10 A12 A13 A14 BCR The breakdown of traffic per class of vehicle reveals a positive trend both in light as well as heavy vehicles (+6.6% and +9.9%, respectively), with the latter posting higher growth rates as a result of the country s economic upturn. II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS INTERIM REPORT 1 ST SEMESTER

10 Investment in the network: widening and maintenance works Capital expenditure (CAPEX) in the network under concession totalled M 19.4, mostly directed to lane widening and pavement improvement works. This figure includes M 8.6 spent in major repairs (pavements, engineering works and slopes), which are treated as provisions, in accounting terms, according to IFRIC 12. M 1H 16 1H 17 % Change New junctions Widening works % Major repairs % Other (equipment, etc) % Total % The amount of the ongoing widening works totalled M 7.5. The widening and improvement works on the Carvalhos / Santo Ovídio sub-stretch on the A1, which started in the 3 rd quarter of 2014, was concluded. The construction of the new North Tunnel of Águas Santas, included in the widening works of the Águas Santas / Ermesinde sub-stretch, on the A4, is in its final stage. The tender for the widening (2x4 lanes), improvement works and renovation of the Águas Santas tunnels is in a legal dispute related to the contracting entity. Infrastructure maintenance reached M 8.6, with the highlight being the conclusion of the pavement works on the A2 (Palmela / Marateca and São Bartolomeu de Messines / Paderne), on the A5 (Alcabideche / Cascais) and on the A6 (Borba / Elvas). Additionally, improvement works on the A1 (St. Iria / Alverca and several junctions) and on the A2 (Grândola Sul / Aljustrel) together with several local works which are currently in progress. Various tenders were launched in order to continue other improvement pavement works in the 2 nd semester on the A1, the A12 and the A14, among others. Additionally, BCR continues its maintenance plan on engineering works, slopes and signing. In environmental terms, the accoustic barriers instalation program continued, namely on the A1 and on the A3. For the 2 nd semester, BCR s investment in the infrastructure should be higher than the one recorded during the first six months of the year. BCR will maitain its focus on major repairs and widening works. II - CONCESSION'S CHARACTERISTICS AND CORPORATE BUSINESS INTERIM REPORT 1 ST SEMESTER

11 III - FINANCIAL REPORT

12 PROFIT & LOSS Operating Income In the 1 st half of 2017 operating income (not including revenue associated to construction servicing) totalled M 257.7, an increase of 8.2% compared to the same period of the previous year, comprised as follows: M 1H 16 1H 17 % Change Toll revenues % Service areas % Other % Total % The considerable toll revenues increase, (+8.0% to M 251.6), was supported by the above-mentioned traffic growth and by an upward revision in toll rates by 0.8%. The Statement of Profit and Loss and Other Comprehensive Income includes an equal amount ( M 9.0 in the 1 st half of 2017) recorded under operating income and costs, reflecting the recognition of income and expenses relating to construction services within the scope of the concession. This was recorded so as to comply with IAS 11 standard and paragraph 14 of IFRIC 12. From a substantive and economic perspective, total operating income and costs to determine EBITDA and operating margins do not include income and expenses recognized pursuant to IAS 11. Operating costs Operating costs, excluding Amortisation, Depreciation and Provisions, totalled M 64.4 in the 1 st half of 2017 (+3.7% compared to the same period of the previous year), reflecting the significant increase in activity. Note that the increase in operating expenses is considerably lower than the increase in revenues. M 1H 16 1H 17 % Change External services and supplies % Staff costs % Other costs % Sub-total % Amortization and Provisions % Total % III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

13 External Supplies and Services, which mainly comprises the operating and maintenance contract on the motorway network under concession as well as the costs associated with electronic toll collection, increased 3.5% over the previous year, reaching M As of 30 June 2017, BCR had a total of 14 employees, accounting for personnel expenses of M 0.9. The number of employees did not change in relation to the same period of the previous year. Amortization, Depreciation, Adjustments and Provisions totalled M 85.4 (+0.7% versus the 1 st half of 2016), including M 22.2 of provisions, net of reversals in the amount of M 3.2 related with infrastructure replacement costs that BCR must bear in the future, namely major repairs in the network (in accordance with provisions with IFRIC12). Operating Result and Margin Operating Results (EBITDA) in the 1 st semester 2017 totalled M 193.3, increasing by 9.8% YoY (+ M 17.2) over the same period of the previous year. The sharp rise in operating income, which was significantly higher than the increase in costs, led to a considerable increase in EBITDA margin that reached 75.0% (+1.1 p.p. YoY). EBIT totalled M and EBIT margin stood at 41.9%, representing an increase of 18.2% and 3.6 p.p. respectively, when compared to 30 June M 1H 16 1H 17 % Change EBITDA % EBITDA margin 73.9% 75.0% 1.1 p.p. EBIT % EBIT margin 38.3% 41.9% 3.6 p.p. Financial results In the 1 st half of 2017, BCR recorded negative financial results of M 39.8, which represents a M 15.3 improvement in relation to the same period of the previous year. Financial Income, corresponding entirely to interest income continued to reflect the low interest rates offered on bank deposits, leading to a decrease from M 0.3 in the 1 st half of 2016 to close to zero in the 1 st half of Financial Expenses posted a quite favourable evolution, falling by 28.1% or M 15.6 versus the same period of the previous year (from M 55.4 to M 39.8). This decrease is mainly explained by i) the redemption in December 2016 of the M bond, which had a coupon of 4.5% and ii) one-off costs related to the exercise by BCR of the call option and respective early repayment of a M 120 Bond due in June III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

14 M 1H 16 1H 17 % Change Financial income % Financial expenses % Financial Results % Net Profit Net income totalled M 48.7 determined by reference to profit before taxes of M 68.0 and considering income tax of M M 1H 16 1H 17 % Change Earnings before taxes % Taxes % Net Income % III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

15 STATEMENT OF FINANCIAL POSITION Financial debt and liquidity position As of 30 June 2017, BCR s accounting gross debt totalled M 2 407, increasing by M 206 in relation to the end of 2016 (in nominal terms, gross debt totalled M as of 30 June 2017). Cash at the end of the semester totalled M 339 (which compares with M 118 as of 31 December 2016), of which M 114 was placed in reserve accounts for CAPEX and debt service purposes. Thus, at the end of the semester BCR net debt totalled M from an accounting point of view, falling by M 15 in the period (in nominal terms, it increased by M 10 to M 2 107). The breakdown of gross debt according to debt instrument was as follows: M H 17 Change Bonds EIB Other Gross Debt a Cash Net Debt Gross Debt Breakdown (accounting figures) 21% 8% 71% (a) This amount corresponds to the nominal value of debt (which in the 1H16 and 1H17 totalled M and M 2 446, respectively) net of accrued interest and expenses of loan issuing and placing, according to the effective interest method throughout the life of the loans. Bonds EIB Other Bonds BCR kept a prudent financial management during the period under review. In May, the company issued a new Bond in the amount of M 300 (2.375% coupon and maturity in 2027), which enabled it to extend its average debt maturity and reduce the average cost of debt, thus obtaining greater financial flexibility. Following this transaction, at the end of the 1 st half of 2017, BCR had 7 Bond issues outstanding with a total nominal value of M 1 420, as follows: III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

16 M Nominal Coupon Maturity Bond % 2018 Bond % 2021 Bond Floating (Eur6M) + 2.4% 2022 Bond % 2023 Bond % 2025 Bond % 2027 Bond Inflation-linked* 2032 * Fixed interest rate of 6% for the first five years and thereafter interest rate linked to the Consumer Price Index except housing added by 4,5% EIB and Other Loans In the 1 st half of 2017 BCR had a funding facility with the European Investment Bank (EIB), which has a floating interest rate indexed to the 6-month Euribor rate. This loan has fixed principal repayments every half-year until December At 30 June 2017 the amount outstanding under this loan totalled M 504. Additionally, as of 30 June 2017 BCR had committed credit lines and commercial paper programmes in a total amount of M 475, of which M 200 were drawn and M 275 fully undrawn. It should also be noted that, in May 2017, BCR extended the maturity of one of the committed credit lines until 2020 in the amount of M 100. Debt Profile BCR's debt amortisation profile is fairly balanced, as a result of a proactive management of refinancing risk, since the maximum amount due in a year will be M 339 (corresponding to the redemption of a M 300 bond and the annual repayment of the EIB loan in the amount of M 39). III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

17 Debt Amortization Profile ( M) Bonds Other EIB As of 30 June 2017, approximately 75% of BCR s debt was on fixed interest rates, whilst 25% was subject to floating interest rates. The weighted average cost of debt during the 1 st half of 2017 (including the impact of derivative instruments) was 2.8%, corresponding to a 48 bps decrease compared to Financial Position At the end of the 1 st half of 2017 BCR s Net Assets totalled M 2 891, comprising mostly intangible assets associated with concession rights and bank deposits. Liabilities amounted M versus M in December 2016, mainly as result of the new Bond issue. Equity fell by M 52 (to M 156), mainly as result of the distribution made to the shareholder BCR SGPS, S.A. totalling M 101. Covenants and Rating In addition, its financial and contractual structure, which grants creditors high protection, BCR maintains a prudent and conservative financial management policy. The four covenants in the form of financial ratios (namely Net Senior Debt/EBITDA, Historic ICR, Forward Looking ICR and CLCR) to which BCR is subject to through the Common Terms Agreement (CTA) are significantly within established thresholds as of 30 June The Net Senior Debt / EBITDA ratio stood at 5.05x, i.e. below the level posted at the end of 2016 (5.25x) and significantly below the lock-up level of 5.75x, allowing BCR to keep ample headroom to this threshold. III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

18 The historic ICR ratio as of 30 June 2017 was 4.27x, significantly above the established trigger event threshold of 2.25x. This ratio recorded a slight decrease in relation to the 4.38x posted at 31 December 2016, such decrease being caused by the temporary effect associated with the bond interest payment dates falling within the semester. The ratio should revert in the 2 nd semester of BCR's ratings are BBB (Stable Outlook) given by Fitch Ratings and Baa3 (Stable Outlook) given by Moody s (reaffirmed on May 2017). Agencies Rating Outlook Moody's Baa3 Stable Outlook Fitch Ratings BBB Stable Outlook III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

19 RISKS AND MITIGATION FACTORS Though its operating risk is low, BCR is exposed to a number of financial risks deriving from its activity. These include: refinancing and interest rate risk deriving from its financial liabilities and counterparty risk to which the Company is exposed as it contracts interest rate risk hedging operations and manages its treasury surpluses. Following the spin-off and ring-fencing of BCR, the financial risks to which the company is subject were strongly mitigated thanks to the implementation of an innovative financial structure. Note that BCR financial structure follows a risk hedging policy with its own risk management requirements and guidelines, including, for instance, a minimum percentage of fixed rate debt, non existence of significant non-hedged foreign exchange exposure, as well as a minimum financial solidity (according to ratings) required from counterparties to enter into financial operations. Over the past few years BCR has shown its strong capacity to secure access to credit, reinforcing its liquidity position and mitigating its refinancing risk. III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

20 The Board of Directors Vasco Maria Guimarães José de Mello (chairman) João Pedro Stilwell Rocha e Melo João Pedro Ribeiro de Azevedo Coutinho António José Lopes Nunes de Sousa Daniel Alexandre Miguel Amaral Manuel Eduardo Henriques de Andrade Lamego Michael Gregory Allen Fernando Aboudib Camargo António José Louçã Pargana Miguel José Pereira Athayde Marques João Filipe Maia de Lima Mayer Emanuel José Leandro Maranha das Neves III - FINANCIAL REPORT INTERIM REPORT 1 ST SEMESTER

21 IV - FINANCIAL STATEMENTS

22 Statement of Financial Position as of 30 June 2017 and 31 December 2016 (amounts in Euro) Notes Non current assets Tangible fixed assets Intangible assets Advances to be forwarded as tangible fixed assets Deferred tax assets Total non-current assets Current assets Inventories Trade and other receivables Other current assets Cash and cash equivalent Total current assets Total assets Shareholders' equity: Share capital Share premiums Legal reserve Other reserves Net results Total shareholders' equity Non-current liabilities: Loans Provisions Other non current liabilities Total non-current liabilities Current liabilities: Provisions Trade payables Loans Suppliers of investment Other accounts payable Current tax liabilities Other current liabilities Total current liabilities Total liabilities and equity The accompanying notes form an integral part of the statement of financial position for the period ended 30 June THE CERTIFIED ACCOUNTANT NO THE BOARD OF DIRECTORS IV - FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

23 Statement of profit and loss and other comprehensive income as of 30 June 2017 and 2016 (amounts in Euro) Notes Operating income: Rendered Services Other operating income Operating subsidies Reversal of amortisation, depreciation, adjustments and provisions 3, 16 and Income associated to construction service Total operating income Operating expenses: External supplies and services 4 ( ) ( ) Personnel costs ( ) ( ) Amortisation, depreciation and adjustments 9, 10 and 16 ( ) ( ) Provisions 17 ( ) ( ) Tax ( ) ( ) Other operating expenses ( ) ( ) Expenses associated to construction service 3 ( ) ( ) Total operating expenses ( ) ( ) Operating Results Financial expenses 5 ( ) ( ) Financial income Profit before tax Income tax 6 ( ) ( ) Net profit for the semester Other income and expenses recognised under Shareholders' Equity which will be reclassified to results: Increase/(decrease) in the fair value of financial instruments, net of tax effect Income recognised directly in shareholders' equity Total net results and other comprehensive income for the semester Earnings per share: Basic 7 3,25 1,78 Diluted 7 3,25 1,78 The accompanying notes form an integral part of the results and other comprehensive income for the semester ended 30 June THE CERTIFIED ACCOUNTANT NO THE BOARD OF DIRECTORS IV - FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

24 Statement of changes in shareholders' equity as of 30 June 2017 and 2016 (amounts in Euro) Share issue Legal Other Net Notes Share capital premium reserve Reserves results Total Balance at 01 January Net profit for the semester of Increase/(decrease) in the fair value of financial hedging instruments net of tax 11, 14 and Total net results and other comprehensive income for the semester Appropriation of net profit for 2015: Transferred to legal reserve ( ) - Dividends ( ) ( ) Distribution of free reserves ( ) - ( ) Share capital increase ( ) Share capital decrease 13 ( ) ( ) Balance at 30 June Balance at 01 January Net profit for the semester of Increase/(decrease) in the fair value of financial hedging instruments net of tax 11, 14 and Total net results and other comprehensive income for the semester Appropriation of net profit for 2016: Transferred to legal reserve ( ) - Dividends ( ) ( ) Share capital increase ( ) Share capital decrease 13 ( ) ( ) Balance at 30 June The accompanying notes form an integral part of the statement of changes in shareholders' equity for the period ended 30 June The Accountant, no THE BOARD OF DIRECTORS IV - FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

25 Cash Flow Statement as of 30 June 2017 and 2016 (amounts in Euro) Notes OPERATING ACTIVITIES: Cash receipts from clients Cash paid to suppliers ( ) ( ) Cash paid to personnel ( ) ( ) Flows generated by operations Income tax paid ( ) ( ) Payments for the replacement of infrastructures ( ) ( ) Other receipts/(payments) relating to operating activities Net cash from operating activities (1) INVESTMENT ACTIVITIES Cash receipts relating to: Tangible and intangible fixed assets Interest and similar income Cash payments relating to: Tangible and intangible fixed assets ( ) ( ) Net cash from investing activities (2) ( ) ( ) FINANCING ACTIVITIES Cash receipts relating to: Borrowings Cash payments relating to: Borrowings ( ) ( ) Share capital decreases 13 ( ) ( ) Interest and similar costs ( ) ( ) Dividends 8 ( ) ( ) Derivative financial instruments ( ) ( ) ( ) ( ) Net cash from financing activities (3) Foreign exchange effect (4) - 6 Variation in cash and cash equivalents (5) = (1) + (2) + (3) + (4) Cash and cash equivalents at the beginning of the semester Cash and cash equivalents at the end of the semester The accompanying notes form an integral part of the cash flow statement for the semester ended 30 June THE CERTIFIED ACCOUNTANT NO THE BOARD OF DIRECTORS IV - FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

26 V - NOTES TO THE FINANCIAL STATEMENTS

27 Notes to the Financial Statements As of 30 June 2017 (Amounts in Euro) 1. INTRODUCTION Brisa Concessão Rodoviária, S.A. (the Company or BCR ), previously called MCall Serviços de Telecomunicações, S.A., was set up in On 30 April 2010, following the spin off of the call centre business into a new company and subsequent amendment of the company's articles of association, BCR's main object became the construction, maintenance and operation of motorways and respective service areas pursuant to a concession contract, and the planning and development of social equipment infrastructures. The above mentioned spin off was carried out in April 2010, with accounting effect as of 1 January 2010, following the separation of the call centre services assets. On 22 December 2010 the Company, which is included in the consolidation perimeter of the Brisa Group, was assigned by Brisa - Auto-Estradas de Portugal, S.A. ( BAE ) the latter's position in the concession contract approved by Council of Ministers Resolution no. 198-B/2008, of 31 December ( Brisa Concession ). This operation was followed by the assignment by BAE of a set of assets and liabilities allocated to Brisa Concession, by means of contributions in kind for the purposes of a share capital increase that took place on 22 December The bases of Brisa Concession were established pursuant to Decree-law 467/72 of 22 November, namely the construction, maintenance and operation of motorways. Since then, the concession bases have been revised on several occasions, following amendments to the concession contract. Decree-Law 294/97 of 24 October, Decree-Law 287/99, of 28 July, Decree-Law 314 A/2002, of 26 December, and Decree-Law 247-C/2008, of 30 December approved the bases of the concession currently in force; these bases are as described below, having relevant impact on the Company's financial and economic situation: The establishment of the motorway network s total length. Currently, the length of the motorway network under concession and open to traffic is of kilometers, of which 86 kilometers are not tolled. The network under concession will be completed with the construction of the access to the new Lisbon airport, whose definite length depends on its location. The term of the concession was fixed at 31 December 2035 and tangible and intangible fixed assets directly related to the concession as recognized in the financial statements, will revert to the State at the end of the period. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

28 The Company's minimum share capital is Euro 75 million. In the last 5 years of the concession the State may terminate it against compensation payable to the Concessionaire. The supervision of the concession falls to the Ministry of Finance in what concerns financial matters and to the ministry responsible for the road sector as concerns remaining issues. 2. MAIN ACCOUNTING POLICIES Basis of presentation The accompanying financial statements were prepared in accordance with provisions in IAS 34 Interim Financial Report; accordingly, they should be read jointly with the financial statements for the year ended at 31 December Accounting policies Accounting policies adopted are consistent with those followed in the preparation of the financial statements for the year ended as of 31 December 2016 and referred in respective notes. During the semester ended as of 30 June 2017, various interpretations, amendments and revisions of standards endorsed by the European Union have entered into force, but they had no impact on the Company's financial statements. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

29 3. OPERATING INCOME Operating income for the semesters ended as of 30 June 2017 and 2016 are made up as follows: Services rendered: Tolls Service areas Other operating income: Compensation for operating losses (Note 18) Equipment rental Recovery of revenues Toll fines Gains on tangible and intangible fixed assets Other Operating subsidies Reversal of amortisation, depreciation and adjustments and provisions: Provisions (Note 17) Accounts receivable (Note 16) Income associated to construction service (a) (a) Within the scope of BCR concession contract covered by IFRC 12, construction activity is subcontracted to external specialised companies. As result, BCR does not have any margin in the construction of assets allocated to the concession; hence revenue and expenses associated to the construction of these assets are recorded in equal amount. In the semesters ended at 30 June 2017 and 2016, operating income included transactions with group and other related companies in the amount of 1,069,201 and 74,158, respectively (Note 22). V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

30 4. SUPPLIES AND SERVICES The Goods & Services Account for the semesters ended 30 June 2017 and 2016 is made up as follows: Operation and Maintenance Logistic and administrative support Electronic toll services Maintenance and repair Motorway stretches Other Insurance Technical and administrative assistance Advertising costs Legal and tax advice Fuel Legal services Communications Studies and opinions Other In the semesters ended at 30 June 2017 and 2016, the Goods & Services Account included transactions with related companies in the amount of 60,661,590 and 59,039,575, respectively (Note 22). 5. NET FINANCIAL RESULTS Financial results for the semesters ended as of 30 June 2017 and 2016 were made up as follows: Expenses and losses: Interest expense Financial revision of provisions for replacement of infrastructures (Note 17) Other operating costs (a) Income and gains: Interest gained Other Financial result ( ) ( ) (a) This heading includes mainly expenses with banking services and funding, forming an integral part of the effective financing cost. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

31 6. INCOME TAX The Company is subject to Corporate Income Tax ("IRC) at the normal rate of 21%, which can be increased by a municipal surcharge of up to a maximum rate of 1.5% of the taxable income. Additionally, the nominal tax rate may vary from 21% to 29.5%, depending on the amount of taxable income (TI) determined, which will be subject to a tax surcharge at the following rates: - State surtax: 3% on TI if M 1.5 < TI <= M 7.5; 5% on TI if M7.5 < TI <= M35; and 7% on TI > M35 In accordance with current legislation, tax returns are subject to review and correction by the tax authorities during a period of four years (five years for social security), except where tax losses exist or tax benefits have been granted or inspections, claims or appeals are in progress, in which case, depending on the circumstances, the period can be extended or suspended. Therefore, the Company's tax returns for the years 2013 to 2016 may still be subject to review and correction. As of 30 June 2017 tax proceedings concerning years 2011 and 2012 (Note 21) are still pending; in line with what is stated in Tax Inspection Reports for BAE relating to years 2007 to 2010, the Tax Authority ("TA") concluded as to the inadequacy of the legal and tax framework applied to the securitization of future receivables in the amount of 400,000 thousand, carried out in 19 December 2007 and transferred to BCR as part of the assets and liabilities allocated to Brisa Concession (Note 1). The report further established that the Company fails to comply with the legislation for the securitization of credits as provided in Decree-law 453/99 of 5 November, as amended by Decree-Law 82/02 of 5 April, and consequently the tax regime provided in Decree-Law 219/2001 of 4 August, both altered by Decree-law 303/2003 of 5 December is not applicable. In view of the above, the Tax Authority considers that: Income corresponding to the services giving rise to the future receivables must be recognized, in tax and accounting terms, in the tax periods in which they are generated; When determining the taxable income relating to 2012 and 2011 (already inspected) an amount of Euro thousand each year was wrongly deducted from taxable income. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

32 The Board of Directors, based on the opinion of its legal and accounting experts and consultants, deems that the recognition of the said operation is adequately based from the legal point of view, and therefore, it is also adequately based in accounting and tax terms. As result, the Board of Directors deems that the corrections proposed in the Tax Inspection Report relating to 2012 and 2011 are totally unfounded; therefore, as parent company within the scope of RETGS in the year concerned, BCR will use all legal means at its disposal as taxpayer to assert the accounting treatment given to this operation at all levels. In view of the above, as of 30 June 2017, no provision was recorded for this purpose. The Board of Directors believes that any possible corrections resulting from revisions/inspections of these tax returns will not have significant impact on the financial statements as of 30 June The deadline for the deduction of reportable tax losses (RTL) is as follows: Tax period: Deduction periods The deduction amount to be made in each of the tax periods is limited to 70% of respective taxable income. Income tax recognised in the periods ended 30 June 2017 and 2016 was made up as follows: Current tax Deferred tax (Note 11) ( ) ( ) Taxes on previous years income ( ) ( ) V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

33 Reconciliation between profit before income tax and income tax for the year as of 30 June 2017 and 2016 is as follows: Profit before tax Expected tax (22.5% rate) Provisions Impairment losses Derivative financial instruments ( ) ( ) Other 92 - Autonomous taxation State surcharge Taxes on previous years income ( ) ( ) (Set up)/reversal of deferred taxation (Note 11) ( ) ( ) Income tax Effective tax rate 28,41% 25,91% As of 30 June 2017 and 31 December 2016 current income tax liabilities were made up as follows: Corporate Income Tax (CIT) Tax estimate Tax withheld ( ) ( ) Payment on account - ( ) EARNINGS PER SHARE: Basic and diluted earnings per share for the semesters ended 30 June 2017 and 2016 were determined based on the following amounts: Basic and diluted earnings per share Result for the purpose of determining the basic and diluted earning per share (net profit for the semester) Average number of shares for the purpose of determining the basic and diluted earning per share Basic and diluted earnings per share 3,25 1,78 At 30 June 2017 and 2016 no diluting effects have occurred; hence, basic and diluted earnings per share are identical. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

34 8. DIVIDENDS The General Shareholders Meetings held on 29 March 2017 and 30 March 2016 decided on the payment of dividends in the amounts of 89,611,777 and 75,507,446, respectively, concerning the net profit for the years ended 31 December 2016 and At the General Shareholders Meeting held on 30 March 2016 it further was decided to distribute free reserves in the amount of 1,492, TANGIBLE FIXED ASSETS Changes in other tangible fixed assets and corresponding accumulated depreciation and impairment losses in the semesters ended 30 June 2017 and 2016 were as follows: Buildings and Tangible fixed Advances to be other Basic Transport Administrative Tools assets forwarded to constructions Equipment Equipment Equipment and utensils in progress tangible fixed assets Total Gross assets: Opening balance Increases Disposals - ( 2 381) ( ) ( 284) ( ) Write-downs - ( ) - ( 1 655) ( ) Transfers ( ) ( 3 379) - Closing Balance umulative depreciation and Impairment losses: Opening balance Increase Decrease - ( 2 381) ( ) ( 284) ( ) Write-downs - ( ) - ( 1 655) ( ) Closing Balance Net value Buildings and Tangible fixed Advances to be other Basic Transport Administrative Tools assets forwarded to constructions Equipment Equipment Equipment and utensils in progress tangible fixed assets Total Gross assets: Opening balance Increases Disposals - - ( ) ( ) Write-downs - ( ) - ( 180) ( ) Transfers ( ) - - Closing Balance Cumulative depreciation and Impairment losses: Opening balance Increase Decrease - - ( ) ( ) Write-downs - ( ) - ( 180) ( ) Closing Balance Net value V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

35 10. INTANGIBLE ASSETS Changes in intangible fixed assets and corresponding accumulated depreciation and impairment losses in the semesters ended 30 June 2017 and 2016 were as follows: Licenses Intangible assets Rights and software in progress Total Gross assets: Opening balance Increases Transfers ( ) - Capitalized financial costs Closing Balance Cumulative depreciation impairment losses: Opening balance Increase Closing Balance Net value Licenses Intangible assets Rights and software in progress Total Gross assets: Opening balance Increases Capitalized financial costs Closing Balance Cumulative depreciation impairment losses: Opening balance Increase Closing Balance Net value The gross value of intangible assets at 30 June 2017 includes essentially: (i) Right to operate Brisa concession, obtained as consideration for motorway and related infrastructures construction services in the amount of 4,205,809,221, of which Euro 243,656,445 relate to the capitalization of financial expenses. (ii) Payment to the State (Grantor) as consideration for the right to collect tolls on the CREL motorway as from 1 January 2003, under the terms of Decree-law 314 A/2002, of 26 December 236,318,343; V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

36 (iii) Amount deriving from the General Agreement entered with the State and Estradas de Portugal, S.A. corresponding to changes in the Concession Bases (Decree-law 247-C/2008, of 30 December) - 158,100,000 (Note 18); (iv) Costs with the renegotiation of the concession contract in 1991, namely the extension of the concession period initially established 101,749, DEFERRED TAXES Deferred tax assets and liabilities at 30 June 2017 and 31 December 2016, by underlying timing difference, were as follows: Provisions for the replacement of infrastructures Derivative financial instruments Provisions not considered for tax purposes The changes in deferred tax assets and liabilities in the semesters ended 30 June 2017 and 2016 were as follows: Opening balance Effect on results: Change in provisions for the replacement of infrastructures Increase / (decrease) of financial instruments ( ) ( ) Change in provisions not accepted for tax purposes ( ) - Sub-total (Note 6) Effect on equity Increase / (decrease) of financial instruments ( ) ( ) Closing Balance V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

37 12. CASH AND CASH EQUIVALENT Cash and cash equivalents at 30 June 2017 and 31 December 2016 are made up as follows: Bank deposits Cash and cash equivalent Within the scope of the contractual obligations assumed by BCR, the balance of bank deposits as of 30 June 2017 and 31 December 2016 included the following reserve accounts: Debt service reserve account Reserve account for investment purposes As the business the company may pursue is restricted pursuant to its bylaws and concession contract, but including loans and investments, and considering that the above mentioned reserve accounts may be used for such purposes, the Company considers the balances of these reserve accounts as cash and cash equivalents. 13. CAPITAL The Company s capital at 30 June 2017 is made up of fully subscribed and paid up shares with a nominal value of five Euro each. Brisa Concessão Rodoviária, SGPS, S.A. (BCR, SGPS) holds 15,000,000 shares, representing 100% of the share capital. Shareholders at the General Meeting held on 29 March 2017 decided to increase the Company's share capital from Euro to Euro , fully paid up through the integration of part of the share premium, by increasing the nominal value of shares from Euro 5.00 each to Euro 5.79 each. At the same General Shareholders Meeting it was subsequently decided to reduce the Company's share capital from Euro to Euro , by releasing surplus capital and reducing the nominal value of shares from Euro 5.79 each to Euro 5.00 each. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

38 Shareholders at the General Meetings held on 30 March 2016 and 6 October 2016 decided to increase the Company's share capital from Euro 75,000,000 to Euro 138,000,000 and from Euro 75,000 to Euro 294,000,000, fully paid up through the incorporation of part of the share premium, by increasing the nominal value of shares from Euro 5.00 each to Euro 9.2 each and from Euro 5 each to Euro each. At the said General Meetings shareholders subsequently decided to decrease the Company's share capital from Euro 138,000,000 to Euro 75,000,000 and subsequently from Euro 294,000,000 to Euro 75,000, respectively, for the purposes of releasing surplus capital, by decreasing the nominal value of shares from Euro 9.2 each to Euro 5.00 each and from Euro each to Euro 5 each, respectively. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

39 Share premiums The share premium resulted from the difference between: (i) the net value of assets and liabilities transferred by BAE in the year ended on 31 December 2010 for the purposes of a capital increase by contribution in kind, and (ii) the nominal value of the issued shares. According to the relevant law, this follows provisions applicable to legal reserves. At the General Shareholders Meeting held on 29 March 2017 it was decided to incorporate part of the share premium, in the amount of 11,850,000 into the share capital. Shareholders at the General Meetings held on 30 March 2016 and 06 October 2016 decided to incorporate as capital part of the share premium, in the amounts of respectively, 63,000,000 and 219,900, LEGAL RESERVE AND OTHER RESERVES Legal reserve Commercial legislation establishes that at least 5% of annual net profit must be appropriated to a legal reserve until the reserve equals at least 20% of share capital. This reserve is not available for distribution except in the event of liquidation, but it can be used to absorb losses once the other reserves have been exhausted, or to increase capital. At 30 June 2017 and 31 December 2016 the legal reserve set up totalled 15,000,000 and 12,928,675, respectively. Other reserves At 30 June 2017 and 31 December 2016 this caption was made up as follows: Free reserves Hedging derivatives (a) ( ) ( ) (a) This caption includes changes in the fair value of financial hedging instruments net of the tax effect (Note 11). V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

40 15. LOANS As at 30 June 2017 and 31 December 2016, contracted loans were made up as follows: Current Non current Non current Non current Bond loans Bank loans Commercial paper BOND ISSUES Non convertible bond loans at 30 June 2017 and 31 December 2016 are made up as follows: Nominal Value Interest rate Issue of the issue Current Non current Current Non current Maturity Nominal jan/32 6%* abr/18 6,875% abr/21 3,875% abr/25 1,875% jan/22 Variable mar/23 2,000% mai/27 2,375% * Fixed interest rate of 6% in the first five years and remuneration indexed to the consumer price index except housing as from the sixth year to maturity Issue The bond issue in the amount of 100,000,000 was carried out by BCR on 12 July This bond loan with a 19.5-year maturity, pays interest at a fixed rate of 6% in the first five years and interest indexed to the consumer price index (except housing) as from the sixth year to maturity. Repayment of principal will be made in one instalment at maturity in 12 January Issue The bond issue in the amount of was carried out by BCR on 02 October This bond loan with a 5.5-year maturity bears interest at a fixed rate of 6.875%. Repayment of principal will be made in one instalment at maturity in 06 April V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

41 Issue The bond issue in the amount of was carried out by BCR on 01 April This bond loan with a 7-year maturity bears interest at a fixed rate of 3.875%. Repayment of principal will be made in one instalment at maturity in 01 April Issue 300,000,000 bond issue carried out by BCR on 30 April 2015, replacing part of the bond issue described above. This bond loan with a 10-year maturity bears interest at a fixed rate of 1.875%. Repayment of principal will be made in one instalment at maturity in 30 April Issue bond issue carried out by BCR on 07 June This bond loan has a floating interest rate indexed to the 6-month Euribor. Repayment of principal will be made in one instalment at maturity in 07 January Issue The bond issue in the amount of was carried out by BCR on 22 March This bond loan with a 7-year maturity bears interest at a fixed rate of 2%. Repayment of principal will be made in one instalment at maturity in 22 March Issue The bond issue in the amount of was carried out by BCR on 10 May This bond loan with a 10-year maturity bears interest at a fixed rate of 2.375%. Repayment of principal will be made in one instalment at maturity in 10 May As of 30 June 2017 and 31 December 2016 the following bond issues were listed: Issue Stock Exchange Nominal value Book value Market value (a) Book value Market value (a) Maturity Nominal interest rate 2012 LuxSE abr/18 6,875% 2014 LuxSE abr/21 3,875% 2015 LuxSE abr/25 1,875% 2016 LuxSE mar/23 2,000% 2017 LuxSE mai/27 2,375% (a) Source: Bloomberg The above mentioned bond issues are part of a Euro Medium Term Note Programme, which may be extended to a maximum amount of V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

42 Within the scope of the corporate reorganization of the Brisa Group, on 22 December 2010 BCR replaced Brisa Finance B.V. and BAE as issuer of these bonds, having assumed corresponding obligations from that date forward. The replacement was approved at the Bondholders Meetings of 5 November 2010, for the bond issue of Brisa Finance B.V., and of 15 November 2010, for the bond issue of BAE. BANK LOANS Caption Bank loans at 30 June 2017 and 31 December 2016 is made up as follows: Committed Amount to be settled Committed Amount to be settled Nominal Non Nominal Non Repayment amount Current Current amount Current Current Maturity Periodicity Interest rate dez/30 Half-year Variable Within the scope of the reorganization process, the Group negotiated with the European Investment Bank (EIB) the transfer to BCR of the loans contracted by BAE with the EIB. The amount of debt transferred as of 22 December 2010 totalled 779,708,171. It was also agreed with the EIB the consolidation of 16 existing financing contracts into one sole contract, subject to floating interest rate indexed to the 6-month Euribor with extended term (this loan will be repaid in half-year instalments as from June 2011 to December 2030). Additionally, the Company contracted derivative financial instruments associated with this loan, which are classified as hedging instruments (Note 20). As of 30 June 2017 and 31 December 2016, bank loans had the following repayment schedule: Up to 1 year to 2 years to 3 years to 4 years to 5 years More than 5 years V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

43 COMMERCIAL PAPER AND SHORT TERM LINES Caption Other loans obtained at 30 June 2017 and 31 December 2016 is made up as follows: Other loans Commercial paper At 30 June 2017 and 31 December 2016 BCR had committed short term credit lines and commercial paper issues with banks in a total maximum amount of 475,000,000, of which an amount of approximately 200,000,000 and 250,000,000, respectively, were placed as of the said dates. Of the total amount placed as of 30 June 2017 and 31 December 2016, 150,000 thousand refer to a commercial paper programme with guaranteed subscription for a period beyond one year, thus being classified as of medium and long term. 16. CUMULATIVE IMPAIRMENT LOSSES Changes in cumulative impairment losses in the semesters ended 30 June 2017 and 2016 are as follows: Opening Decrease Closing balance Increase (Note 3) balance Impairment losses: Accounts receivable ( ) Opening Decrease Closing balance Increase (Note 3) balance Impairment losses: Accounts receivable ( ) V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

44 17. PROVISIONS The changes in provisions and accumulated impairment losses in the semesters ended 30 June 2017 and 2016 are as follows: Financial Opening Reversal revision Closing balance Increase Use (Note 3) (Note 5) Transfers balance Provisions: Non current: Pending legal proceedings ( ) Replacement of infrastructures ( ) Other risks and charges ( ) ( ) Current Replacement of infrastructures ( ) ( ) ( ) ( ) ( ) Financial Opening Reversal revision Closing balance Increase Use (Note 3) (Note 5) Transfers balance Provisions: Non current: Pending legal proceedings ( ) Replacement of infrastructures ( ) Other risks and charges ( ) ( ) Current Replacement of infrastructures ( ) ( ) ( ) ( ) Provisions for pending legal proceedings view to cover liabilities as estimated by the Board of Directors based on information from its lawyers, for motor accident claims, losses caused by motorway construction and labour claims. At 30 June 2017 and 31 December 2016 overall claims totalled 9,878,764 and 11,183,815, respectively. Provisions set up correspond to the Board of Directors best estimate of the amount of such liabilities. Provisions for reinstatement of infrastructures relate to the responsibilities to replace the wear layer of the flexible pavements and is recognised, at the present value, through the period up to the date in which the intervention takes place. Provisions are subject to a financial update at each reporting date calculated at the average interest cost rate of the company and recorded as a financial expense. Recorded reversals relate essentially to the reassessment of the estimates for the costs to be incurred and changes in the planned schedule of the interventions in the infrastructure. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

45 18. OTHER NON CURRENT LIABILITIES At 30 June 2017 and 31 December 2016 this caption was made up as follows: Compensation for operating losses (a) Fair value of derivative instruments (Note 20) Financial contributions (b) Advanced revenues of service areas (c) (a) This heading includes 73,669,709 of compensations obtained from the State for the non collection of tolls in some motorway sub-stretches located in the metropolitan areas of Lisbon and Oporto, deducted of the amount of 44,583,548 recognised as income by BCR and BAE (up to the transfer of Brisa Concession to BCR). This amount is to be recognised on a straight-line basis until the end of the concession. In the semester ended at 30 June 2017, BCR transferred to income (caption "Other operating income and gains") the amount of 786,113 (Notes 3 and 19). (b) This caption corresponds to the difference between the amount received from the State, under the Global Agreement established with BCR (Note 10) and the balances pending settlement and recognised in the financial statements as of the date of the agreement. Pursuant to the contract in force, an inspection by IGF (tax inspection authority) is still pending, viewing to validate and confirm balances, to be settled in the amount specified. (c) This caption comprises the amounts paid by sub concessionaires of service stations for future rents (Note 19). V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

46 19. OTHER CURRENT LIABILITIES At 30 June 2017 and 31 December 2016 this caption was made up as follows: Government and other public bodies: Personal income tax: Income tax withheld Value added tax Payments to Social Security Accrued costs: Remuneration payable Group companies and related parties (Note 22) Other Deferred income: Advanced revenues of service areas (Note 18) Compensation for operating losses (Note 18) Other DERIVATIVE FINANCIAL INSTRUMENTS The Group has contracted a series of derivative financial instruments to minimise the risk of exposure to variations in interest rates. Such instruments are contracted considering the risks that affect its assets and liabilities, after verifying which market instruments available are the most adequate to hedge the risks. Such operations, which are subject to the CFO's and/or Executive Board prior approval, are continuously monitored based on relevant indicators, such as evolution of their market value, projected cash flows' and market's sensitivity to changes in the key variables that affect the structures, in order to assess their financial effect. These financial derivative instruments are recorded in accordance with the provisions of IAS 39, being measured at their fair value considering evaluations made by financial institutions based on mathematical models, such as option pricing models and discounted cash flow models for unlisted instruments (overthe-counter instruments). These models are based essentially on market information. V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

47 Derivative financial instruments used by the Company are interest rate swaps. Such instruments are classified as hedging or trading instruments considering the provisions of IAS 39. Hedge accounting is applicable to derivative financial instruments that are efficient as regards the effect of offsetting the variations in the fair value or cash flows of the underlying assets/liabilities. The efficiency of these operations is checked on a quarterly basis. Cash flow hedge instruments are derivative financial instruments that hedge interest rate risk. The effective component of the variations in the fair value of the cash flow hedges is recognised in caption Other Reserves, while the non efficient part is reflected immediately in the income statement. Cash flow hedges As of 30 June 2017 and 31 December 2016 the Company had contracted the following interest rate derivative instruments: Underlying Fair value Underlying Fair value Type of operation Maturity Counterparty amount (Note 18) amount (Note 18) Fixed/var. int. rate swap 15 June 2019 BBVA and BST ( ) ( ) Fixed/var. int. rate swap 15 June 2023 Caixa BI ( ) ( ) ( ) ( ) The said derivative instruments were initially contracted by BAE. Within the scope of the corporate reorganization process of the Group, the contractual position in the said instruments was transferred to the Company on 22 December 2010, as integral part of the assets and liabilities entered as contributions in kind for the capital increase carried out on the said date (Note 14). 21. CONTINGENT LIABILITIES As of 30 June 2017 and 31 December 2016 the Company had the following bank guarantees given to third parties: Guarantees given: Portuguese State (Base XX of BCR Concession Contract) Other guarantees provided to third parties V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

48 Within the scope of the ring-fencing of BCR, a set of guarantees were provided in favour of BCR's senior creditors, which include, among other, a pledge on shares held by BCR SGPS in the share capital of BCR, and in the balances of BCR's bank accounts. Additionally, as result of the tax execution procedures brought against BAE relating to the years ended as of 31 December 2012 and 2011 (Note 6), BCR provided guarantees to the tax authorities on September 22, 2016 and December 29, 2015 in the amounts 30,947,514 and 25,550,860, viewing to suspend the said proceedings. 22. RELATED PARTIES At 30 June 2017 and 31 December 2016, balances with group companies were made up as follows: Clients and other debtors Suppliers Suppliers of Investment Other creditors Other current assets Other current liabilities (Note 19) Parent company: BAE Related parties: BRISA O&M, S.A. ("BOM") BGI - Brisa Gestão de Infraestruturas, S.A. ("BGI") Brisa Inovação e Tecnologia, S.A. ("BIT") Via Verde Auto-Estradas do Atlântico, S.A. ("AEA") Controlauto - Controlo Técnico Automóvel, S.A. ("Controlauto") Iteuve Portugal, Sociedade Unipessoal, Lda. ("Iteuve") AEDL - Auto-Estradas do Douro Litoral, S.A. ("AEDL") AEBT - Auto-Estradas do Baixo Tejo, S.A. ("AEBT") Sicit - Sociedade de Investimento e Consultoria em Infra-estruturas de Transportes, S.A. ("Sicit") Via Verde Portugal, S.A. ("VVS") Brisa Áreas de Serviço, S.A. ("BAS") José de Mello Group Efacec Group Additionally, transactions carried out with Group and related companies in the semesters ended as of 30 June 2017 and 2016 were as follows: Services rendered Supplies and Expenses associated Tangible fixed (Note 3) external services (Note 4) with construction service assets Parent company: BAE Related parties: BOM Via Verde BGI BAS BIT VVS AEDL AEBT Controlauto Iteuve Mcall VVC BCI SICIT M Dados Sistemas de Informação, S.A V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

49 In the semesters ended 30 June 2017 and 2016, remuneration of the members of Brisa's corporate bodies was as follows: Non-executive directors: Fixed remuneration Supervisory Board In the semesters ended 30 June 2017 and 2016, remuneration of key management personnel was as follows: Key managing personnel Fixed remuneration Variable remuneration: Defined benefits V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

50 23. APPROVAL OF THE FINANCIAL STATEMENTS The financial statements for the semester ended 30 June 2017 were approved by the Board of Directors on 22 August São Domingos de Rana, 22 August 2017 The Certified Accountant no João Miguel Rodrigues THE BOARD OF DIRECTORS Vasco Maria Guimarães José de Mello João Pedro Stilwell Rocha e Melo João Pedro Ribeiro de Azevedo Coutinho António José Lopes Nunes de Sousa Daniel Alexandre Miguel Amaral Michael Gregory Allen V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

51 Manuel Eduardo Henriques de Andrade Lamego Fernando Aboudib Camargo António José Louçã Pargana Miguel José Pereira Athayde Marques João Filipe Maia de Lima Mayer Emanuel José Leandro Maranha das Neves V - NOTES TO THE FINANCIAL STATEMENTS INTERIM REPORT 1 ST SEMESTER

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