SAG GEST – Soluções Automóvel Globais, SGPS, SA Listed Company Estrada de Alfragide, nº 67, Amadora Registered Share Capital: 169,764,398 euros Registered at the Amadora Registrar of Companies under the single registration and taxpayer no. 503 219 886

ANNOUNCEMENT

Consolidated Results 3rd Quarter 2016 (Unaudited)

With a stable Consolidated Turnover (Eur 460.8 million in the first nine months of 2016), SAG remains on a consistent path of operational performance improvement: •

EBITDA increases 2.6% to Eur 14.8 million, due to an improved channel mix, namely a lower weight of the rent-a-car segment

•

Earnings Before Taxes (EBT) were approximately Eur 1.6 million (a Eur 5.8 million loss in the same period of the previous year)

•

Consolidated Net Profit was marginally negative (Eur 0.9 million), an 84.2% improvement when compared with the Eur 5.5 million loss recorded in the same period in 2015 (where Unidas’ positive results still contributed Eur 2.7 million)



Consolidated Net Debt as at 30 September 2016 (Eur 128.3 million) shows a seasonal increase of Eur 17.1 million when compared with 31 December 2015

SAG GEST – Soluções Automóvel Globais, SGPS, SA – Sociedade Aberta Sede: Estrada de Alfragide, nº 67 Amadora Capital Social: Eur 169.764.398,00 Matriculada na Conservatória do Registo Comercial da Amadora Número Único de Matrícula e de Identificação Fiscal 503 219 886 Escritório: Alfrapark – Estrada de Alfragide, nº 67, Edifício SGC – Piso 2 2614-519 Amadora Tel: 21 359 66 64 Fax: 21 359 66 74

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1. OPERATIONAL PERFORMANCE •

Automotive Distribution •

Although at a decreasing pace, the Portuguese Automotive Market maintained during the first three quarters in 2016 the previous years’ growth trend, with a 15.0% increase when compared with the same period in 2015, and a total volume (new registration applications) of 183,529 units. This behavior was, as was already clear in the 1st Half of this year, driven by strong growth in the rent-a-car segment and by early purchases from April onwards, as a consequence of the announcement of car tax increases.

•

Volume achieved by the Brands represented by SIVA was 23,930 units, a 2.4% decrease when compared to the volume of 24,506 units recorded during the first nine months in 2015. Consequently, SIVA’s market share was 13.0%, a 2.4 p.p. decrease when compared with the share recorded in the same period in 2015, due to the strategic decision of not meeting the strong growth pace of the rent-acar business.

• •

o

The Volkswagen Passenger Car Brand, with a volume of 13,196 units achieved an 8.3% market share (9.6% in 2015) in the Light Passenger Car market. This evolution in the Brand’s volume is in line with the Brand’s performance at the European level.

o

The Audi Brand’s volume was 6,876 units, 4.4% lower than the 7,194 units recorded during the same period last year, due to the current stage of the Brand’s product cycle and in view of strong competitive activity.

o

The Skoda Brand volume was 2,278 units (2,456 in the same period in 2015).

o

The Volkswagen Commercial Vehicles Brand, with a volume of 1,575 units, recorded a 2.1% volume growth when compared with the same period in 2015 (1,543 units).

In this context, the Distribution Area’s operational cash flow generation (EBITDA) increased 2.3% when compared with the same period in the previous year.

Automotive Retail

•

The number of new vehicles of the Volkswagen, Audi, Skoda and Volkswagen – Commercial Vehicles sold by the Soauto Dealerships (Soauto SA, Loures Automóveis, Rolporto and Rolvia) during the during the first three Quarters of 2016 was 3,236 units, a 1.4% increase when compared to the same period in the previous year. In the Used Car business, the Soauto Dealerships sold 1,352 units, an 8.5% decrease when compared with the 1,478 units sold in the same period the year before.

•

After-sales volume, measured by the number of hours sold, was 134,192 hours during the first three Quarters of 2016, a slight 0.2% increase when compared with the 133,986 hours recorded in the same period last year.

•

EBITDA in the Automotive Retail Area increased 43% when compared to the same period in 2015 to Eur 2.5 million (Eur 1.7 million during the first nine months of 2015).

SAG GEST – Soluções Automóvel Globais, SGPS, SA – Sociedade Aberta Sede: Estrada de Alfragide, nº 67 Amadora Capital Social: Eur 169.764.398,00 Matriculada na Conservatória do Registo Comercial da Amadora Número Único de Matrícula e de Identificação Fiscal 503 219 886 Escritório: Alfrapark – Estrada de Alfragide, nº 67, Edifício SGC – Piso 2 2614-519 Amadora Tel: 21 359 66 64 Fax: 21 359 66 74

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2. ECONOMIC AND FINANCIAL RESULTS •

Consolidated Turnover for the first nine months of 2016 was Eur 460.8 million, a marginal 0.8% decrease when compared with Eur 464.7 million recorded during the same period the year before.

•

In spite of the decrease in Consolidated Turnover, Consolidated Effective Margin increased 1.3% when compared with the nine months ended on 30 September 2015, representing 10.5% of Consolidated Turnover (10.3% in the same period in 2015).

•

Operational Expenses increased approximately 0.7% when compared with the first nine months in 2015, and therefore Consolidated EBITDA for the first three Quarters of 2016 (Eur 14.8 million) increased 2.6% when compared to the Eur 14.4 million recorded during the same period in 2015.

•

Earnings Before Interest and Taxes (EBIT) was Eur 13.3 million, a 5.7% increase when compared to approximately Eur 12.6 million during the first nine months in 2015.

•

Consolidated Net Financial Expenses recorded a substantial decrease of approximately Eur 6.6 million when compared to the first three Quarters of 2015. This significant decrease allowed EBITDA’s interest coverage ratio to be 1.3x, and was the result of the decrease in consolidated debt that resulted from the SAG Gest capitalization transactions completed in December 2015. Interest expenses decreased by approximately Eur 7.3 million (58%), while other financial expenses recorded an increase of approximately Eur 0.6 million due to additional bank guarantees required to accommodate the increase in purchase volumes.

•

Following the 2015 capitalization transactions, Consolidated Equity is no longer exposed to exchange rate risk, due to the sale of SAG Gest’s investment in Unidas. Consolidated Equity, at Eur 21.4 million on 30 September 2016, remained basically unchanged when compared with 31 December 2015, and was only impacted by the negative results recorded during the first nine months of 2016 (Eur 0.9 million).

•

Consolidated Net Debt as at 30 September 2016 was Eur 128.3 million, an increase of approximately Eur 17.1 million (15.4%) when compared with Eur 111.1 million on 31 December 2015 due to in the increase in stock levels which typically occurs at the end of the 3rd Quarter each year.

Alfragide, 31 October 2016 José Maria Cabral Vozone Investor Relations

SAG GEST – Soluções Automóvel Globais, SGPS, SA – Sociedade Aberta Sede: Estrada de Alfragide, nº 67 Amadora Capital Social: Eur 169.764.398,00 Matriculada na Conservatória do Registo Comercial da Amadora Número Único de Matrícula e de Identificação Fiscal 503 219 886 Escritório: Alfrapark – Estrada de Alfragide, nº 67, Edifício SGC – Piso 2 2614-519 Amadora Tel: 21 359 66 64 Fax: 21 359 66 74

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CONSOLIDATED INCOME STATEMENT (Unaudited) Consolidated Income Statement (Values in Eur 000) Sales Services Rendered Turnover Effective Margin % of Turnover Outside Services & Supplies - Commercial Expenses Outside Services & Supplies - Car Expenses Sub Total Variable Expenses Outside Services & Supplies - Non Variable Expenses Payroll Expenses Sub Total Overheads Operating Expenses % of Turnover EBITDA % of Turnover Depreciation and Amortization Gains / (Losses) on Sale of Assets Provisions Impairments EBIT % of Turnover Income from Associated Companies - Equity Method Net Interest Other Financial Expenses Net Financial Income / (Expenses) EBT % of Turnover Income Taxes Net Profit from Ordinary Activities Unidas - Appropriated Net Income (Equity Method) Sub-Total Discontinued Operations Net Profit Non-Controlling Interests Net Profit % of Turnover

9 months ended 30 September 2016

2015

453,074 7,768 460,842

457,460 7,281 464,741

-1.0% 6.7% -0.8%

48,607 10.5%

47,981 10.3%

1.3%

(6,963) (1,469) (8,432)

(8,095) (1,282) (9,377)

-14.0% 14.6% -10.1%

(9,889) (15,488) (25,378)

(8,794) (15,395) (24,188)

12.5% 0.6% 4.9%

(33,809) -7.3%

(33,565) -7.2%

0.7%

14,797 3.2%

14,416 3.1%

2.6%

(1,317) 25 96 (306)

(1,327) 9 (212) (306)

-0.8% 173.9% -145.2% 0.0%

13,296 2.9%

12,580 2.7%

5.7%

(75) (5,434) (6,235) (11,744)

3 -2701.5% (12,780) -57.5% (5,585) 11.6% (18,363) -36.0%

1,552 0.3%

(5,783) -1.2%

-126.8%

(2,285)

(2,267)

0.8%

(733)

(8,050)

-90.9%

0 0

2,722 2,722

(733)

(5,328)

(126)

(122)

3.1%

(859) -0.2%

(5,450) -1.2%

-84.2%

SAG GEST – Soluções Automóvel Globais, SGPS, SA – Sociedade Aberta Sede: Estrada de Alfragide, nº 67 Amadora Capital Social: Eur 169.764.398,00 Matriculada na Conservatória do Registo Comercial da Amadora Número Único de Matrícula e de Identificação Fiscal 503 219 886 Escritório: Alfrapark – Estrada de Alfragide, nº 67, Edifício SGC – Piso 2 2614-519 Amadora Tel: 21 359 66 64 Fax: 21 359 66 74

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% Chg

CONSOLIDATED STATEMENT OF THE FINANCIAL POSITION (Unaudited) Consolidated Statement of the Financial Position (Values in Eur 000)

Fixed Assets - Net Investments in Associates - Equity Method Consolidation Accounts Receivable - Related Parties Deferred Tax Assets

Sep-16

Dec-15

77,926 24 136,634 5,383

77,621 21 131,647 6,761

219,966

216,050

203,863 69,652 5,493 5,037 10,441

190,613 76,828 6,405 5,439 18,116

294,486

297,401

0

0

514,452

513,451

315,114 0 135,172 0 0 (428,063) (859)

314,988 0 135,172 0 0 (353,166) (74,897)

21,364

22,097

97,862 2,839 268

100,247 2,173 398

100,969

102,818

40,837 321,977 538 28,768

28,992 326,205 535 32,803

Current Liabilities

392,119

388,535

TOTAL LIABILITIES

493,088

491,354

TOTAL LIABILITIES & SHAREHOLDERS EQUITY

514,452

513,451

Non-Current Assets Inventories Accounts Receivable Current Income Tax Receivable Taxes Receivable - Other Than Income Taxes Cash & Marketable Securities Current Assets Non-Current Assets Held For Sale TOTAL ASSETS Registered Share Capital, Equity Reserves, Non-Controlling Interests Employee Stock Option Plan (Unidas) Supplementary Capital Payments Cummulative Translation Adjustments Cummulative Translation Adjustment - Goodwill Retained Earnings Current Period Profit / (Loss) TOTAL SHAREHOLDERS EQUITY Bank Debt - Medium and Long Term Deferred Tax Liabilities Provisions Non-Current Liabilities Bank Debt - Short Term Accounts Payable Current Income Tax Payable Taxes Payable - Other Than Income Tax

SAG GEST – Soluções Automóvel Globais, SGPS, SA – Sociedade Aberta Sede: Estrada de Alfragide, nº 67 Amadora Capital Social: Eur 169.764.398,00 Matriculada na Conservatória do Registo Comercial da Amadora Número Único de Matrícula e de Identificação Fiscal 503 219 886 Escritório: Alfrapark – Estrada de Alfragide, nº 67, Edifício SGC – Piso 2 2614-519 Amadora Tel: 21 359 66 64 Fax: 21 359 66 74

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