Corticeira Amorim : Consolidated results as of 30th June 2017 2017

INANCIAL STATEMENTS

CORTICEIRA AMORIM, SGPS, S.A. - CONSOLIDATED F 1ST HALF 2017

Shareholders of CORTICEIRA AMORIM,

In accordance with the law, the Directors of CORTICEIRA AMORIM S.G.P.S., S.A., a public company, present their consolidated management report.

1. SUMMARY OF ACTIVITY

   In general terms, the economic conditions observed at the beginning of the year continued during the second quarter. Economic sentiment remains globally positive, with different economies showing greater synchronisation, a factor differentiating the current period from other recent periods of growth.

   The US began the second quarter still performing below expectations in the early months of 2017, but gradually began to recover. The slowdown in the first quarter was seen as transitory, given that the economy continued to generate jobs.

   Strong European data set the climate in the Euro Zone with a series of positive surprises. Growth remained strong and showed signs of accelerating in comparison with the beginning of the year, with some indicators reaching pre- crisis levels.

   At Corticeira Amorim, consolidated first-half sales reached 355 M€, a 6% increase on the first six months of 2016. This sales growth was totally organic, not benefitting from any changes in the group's perimeter. The deceleration in the rate of sales growth in the second quarter, which had been forecast in the first-quarter management report, essentially reflected the greater number of working days in the first three months of 2017 compared with the same period of the previous year. In 2016, this effect occurred in the second three months, the strongest quarter of that year for sales growth, thus, by comparison, penalising the second quarter of 2017. The increase in sales was mainly a result of increased volume sales, with the exchange rate effect (relating essentially to the US dollar) having a positive impact of 3.8 M€.

   In terms of business units (BUs), special mention should be made of sales growth at the Cork Stopper BU (8.6%) and the Floor and Wall Coverings BU, which managed to maintain its growth in sales (1.9%). The Composite Cork BU saw the positive impact of the first quarter diluted, having ended the first half with a slight drop in sales (-0.3%).

   Increased production implied an increase in operating costs superior to the growth in sales, but this was offset by the gross margin. Earnings before interest, tax, depreciation and amortisation (EBITDA) evolved positively at slightly above the rate of sales growth, reaching 70.6 M€. The increase would have been greater had it not been for impairments in the first quarter resulting from an analysis of the amount recoverable from some previously capitalised

   CORTICEIRA AMORIM, SGPS, S.A. - CONSOLIDATED FINANCIAL STATEMENTS 1ST HALF 2017

   2/57

   development projects and from an industrial site that is expected to be relocated.

   The EBITDA/sales ratio reached 19.9%, above the 19.7% registered in the first half of 2016. Performance was stronger in the first quarter than over the first half as a whole due to the exceptional increase in sales in the first quarter not being accompanied at the same level by fixed costs. The evolution of the ratio over the whole first half provides a better benchmark for evaluating Corticeira Amorim's performance.

   Financial operations continued to improve due to lower interest rates and debt levels. Net debt at the end of the first half was 11 M€ (1H16: 80 M€).

   Estimates of the rate of effective taxation are higher than for the same period in 2016. This is due to the estimate for the first half of 2016 having benefited from a gain relating to the company's tax declaration for 2014.

   After earnings attributable to non-controlling interests, net income totalled 37.757 M€, an increase of 7.4% compared with the 35.145 M€ registered in the first half of 2016.

2. OPERATING ACTIVITIES - FIRST HALF 2017

The Raw Materials BU kept pace with the Cork Stopper BU's overall increase in activity, registering a sales increase of 3.8%, essentially resulting from internal operations. Production rose 4.3% in line with the increase in sales.

The BU recorded an EBITDA of 10.5 M€, almost the same as in the same period of 2016 (1H16: 10.6 M€).

Preparations for the 2017 cork purchasing campaign advanced according to plan in the first half, achieving the amounts targeted for the period. Cork purchases have almost been completed and point to an increase of about 10%.

The BU continues to seek improvements in its efficiency indicators, in particular through the implementation of several projects for improving processing (Kaizen) and automation as well as improving product quality.

Research continues into the project for cork oak plantations with improved irrigation and better occupation of the available space. Full execution of the project depends on broadening partnerships with forest owners. In this area, it is important to make public bodies aware of the importance of the project for the future of the cork sector in Portugal.

The Cork Stopper BU recorded sales of 239.5 M€, an increase of 8.6% on the first half of 2016. The increase was mainly driven by volume sales (+7.5%) and price. The increase in sales was balanced across products and markets. In term of products, capsulated, champagne and Neutrocork® stoppers performed particularly well.

All segments (still, sparking and spirits) achieved significant growth of above 8%. The spirits segment, in particular, stood out with sales growth of more than 17%.

CORTICEIRA AMORIM, SGPS, S.A. - CONSOLIDATED FINANCIAL STATEMENTS 1ST HALF 2017

3/57

In terms of geographical markets, France, the US, Italy, Spain and Chile registered the biggest sales increases, reflecting the growing "premium-isation" of markets and a growth in sales to large customers. Argentina was the only market where sales fell significantly.

The use of NDtech® technology advanced at the beginning of 2017, reaching a production capacity of 40 million stoppers per year. In June, accumulated sales reached 14 million stoppers.

Increased activity combined with the effect of the BU's sales mix resulted in EBITDA growth of 25.5% to 49.9 M€ on June 30, 2017.

The Composite Cork BU's first-half sales totalled 51.9 M€, a slight drop on the first half of 2016 (52.1 M€). A fall in volume sales (impact: -0.4 M€) was partially offset by the exchange rate effect (impact: +0.5 M€). In terms of segments, Resilient & Engineered Flooring Manufacturers (+0.7 M€), Heavy Construction (+0.7 M€) and the supply of inlays for Hydrocork® products produced by the Floor and Wall Coverings BU (+0.8 M€) together accounted for a significant part of the increase recorded. Furnishing (-1.3 M€), Sport Surfaces (-1.0 M€) and Aerospace (-0.4 M€) were the segments that recorded the largest reduction in sales. The Furnishing segment registered a drop in sales in comparison with the same period in 2016 as a result of some specific projects, delimited in time, that were developed in the previous year. Several initiatives are underway aimed at restoring the contribution made by this segment. These include establishing new partnerships and finding innovative solutions that lead to the presentation of new products on the market based on the unique characteristics of cork. A drop in sales to the principal customer of the Sport Surfaces segment explains its first-half sale performance. Efforts are also being made to increase sales to new partners in this segment.

In terms of geographical markets, an increase in sales to Asia deserves special mention, with sales in China exceeding 500 K€. The drop in sales in the US is explained by the previously described performance of the Sport Surfaces segment. Sales in Europe also fell, mainly due to the performance of the Furnishing segment. The remaining variations were spread over different markets, including increased sales in the Middle East (+0.4 M€).

EBITDA totalled 8.3 M€ in the first half, a drop of 15% compared with the same period of 2016. The fall was essentially due to a change in the sales mix. The products for which sales rose in the first half had a lower industrial margin than the products whose sales fell.

The Floor and Wall Coverings BU saw the pace of sales growth decelerate in the second quarter of 2017, essentially because of the impact of strong sales combined with more working days in the first quarter. First half sales totalled

62.3 M€, an increase of 1.9% on the same period of 2016.

In terms of products, sales of Hydrocork®, which increased by 2.1 M€, and Authentica®, which rose by 2.5 M€, were particularly strong. Sales of LVT Floating products fell by 1.6 M€ (reflecting to a certain extent their cannibalization by Authentica® sales), while sales of Cork Style products dropped by 2.2 M€.

CORTICEIRA AMORIM, SGPS, S.A. - CONSOLIDATED FINANCIAL STATEMENTS 1ST HALF 2017

4/57