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 4th Quarter 2016 (Unaudited) Consolidated Turnover was Eur 633.4 million in 2016, a 2% increase when compared to 2015, maintaining the consistent path of operational performance improvement: •

EBITDA increased 20.3% to Eur 18.2 million, due to an improved channel mix in Automotive Retail business in Portugal, namely the reduced relative weight of the renta-car segment

•

Earnings Before Taxes (EBT) was Eur 0.6 million, representing a significant improvement when compared to the negative Eur 12.6 million in 2015

•

Consolidated Net Profit was marginally negative (Eur 1.2 million), a 93.0% improvement when compared with the comparable loss (excluding the effect of the sale of the Unidas investment) of Eur 16.6 million recognized in 2015

•

Consolidated Net Debt as at 31 December 2016 (Eur 95.5 million) decreased Eur 15.6 million (14.1%) when compared with 31 December 2015, and represents 5.2x the amount of Consolidated EBITDA (7.3x in 2015).

•

2016 was SAG’s first full year after the financial restructuring implemented in 2015, and displays the achievement of the target of ensuring the Company's sustainability, with balanced profit and loss account and consolidated balance sheet statements.

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 •

The Portuguese Automotive Market, measured in terms of new registrations, achieved in 2016 a volume of 242,220 units, a 15.7% increase when compared with the volume in 2015. This behavior was strongly influenced by growth in the rent-a-car segment which represented already 24% of the market, and by the increasing weight of self-registrations (cars registered without an end Customer).

•

The volumes recorded by the Brands represented by SIVA was 31,513 units, a 0.2% increase when compared to the volume of 31,435 units in 2015. Consequently, SIVA’s market share was 13.0%, a 2.0 p.p. decrease when compared with the share recorded in 2015, as a consequence of the strategic decision of not meeting the strong growth pace of the rent-a-car business.

• •

•

The Volkswagen Passenger Car Brand, with a volume of 17,031 units recorded an 8.2% market share (9.5% in 2015) in the Light Passenger Car market. This Brand’s volume performance is in line with the Brand’s performance at the European level.

•

The Audi Brand’s volume was 9,503 units, 0.5% more than the 9,453 units recorded in the previous year, due to the current stage of the Brand’s product cycle and in view of strong competitive activity.

•

The Škoda Brand volume was 2,879 units (3,112 in 2015), a decrease in volume of approximately 7.5% to which contributed the measures adopted to restructure the Brand’s Dealer Network.

•

Volkswagen Commercial Vehicles volume (2,094 units) increased 6.9% when compared to the previous year (1,958 units).

In this context, the Distribution Area’s operational cash generation (EBITDA) was Eur 20.0 million, a 2.1% increase when compared with 2015 (approximately Eur 19.6 million).

Automotive Retail •

The number of new vehicles of the Volkswagen, Audi, Škoda and Volkswagen – Commercial Vehicles sold by the Soauto Dealerships (Soauto SA, Loures Automóveis, Rolporto and Rolvia) during 2016 was 4,462 units, a 4.3% increase when compared to the previous year (4,280 units), with direct sales to end Customers increasing 39% when compared to 2015). In the Used Car business, the Soauto Dealerships sold 1,887 units, a 2.3% decrease when compared with the 1,932 units sold during the previous year.

•

After-sales volume, measured by the number of hours sold, was 179,836 hours during 2016, a slight increase of 0.8% when compared with the 178,328 hours recorded in the same period last year.

•

EBITDA in the Automotive Retail Area increased approximately 38% when compared to 2015, to Eur 3.6 million (Eur 2.6 million in 2015).

2. ECONOMIC AND FINANCIAL RESULTS •

Consolidated Turnover in 2016 was Eur 633.4 million, a 2.0% when compared with Eur 621.2 million recorded during the previous year.

•

Consolidated Effective Margin increased 2.9% when compared with 2015, representing 10.2% of Consolidated Turnover (10.1% in 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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•

Operational Expenses decreased approximately 2.6% when compared with 2015, and therefore Consolidated EBITDA (Eur 18.2 million) increased 20.3% when compared to the Eur 15.1 million recorded in 2015.

•

Earnings Before Interest and Taxes (EBIT) was Eur 16.1 million, a 23.5% increase when compared to approximately Eur 13.0 million in 2015.

•

Consolidated Net Financial Expenses recorded a substantial decrease of approximately Eur 10.1 million when compared to 2015. This significant decrease allowed EBITDA’s interest coverage ratio to be 1.2x (0.6 in 2015), and was the result of the decrease in consolidated debt that resulted from the SAG Gest capitalization transactions completed in December 2015.

•

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 was Eur 21.1 million on 31 December 2016, basically unchanged when compared with 31 December 2015, and was only impacted by the loss recorded in 2016 (Eur 1.2 million).

•

Consolidated Net Debt as at 31 December 2016 was Eur 95.5 million, a decrease of approximately Eur 15.6 million (14.1%) when compared with Eur 111.1 million on 31 December 2015. Medium and long term debt represents to 94.9% of Net Debt which, in turn, was 5.2x Consolidated EBITDA (7.3x in 2015) and to 18.3% of Consolidated Assets (21.6% in 2015).

Alfragide, 10 February 2017 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

12 months ended 31 December 2016

2015

% Chg

623,022 10,400 633,422

611,412 9,749 621,161

1.9% 6.7% 2.0%

64,706 10.2%

62,868 10.1%

2.9%

Outside Services & Supplies - Commercial Expenses Outside Services & Supplies - Car Expenses Sub Total Variable Expenses

(9,728) (2,218) (11,946)

(10,808) (1,674) (12,482)

10.0% -32.5% 4.3%

Outside Services & Supplies - Non Variable Expenses Payroll Expenses Sub Total Overheads

(13,448) (21,132) (34,580)

(14,624) (20,652) (35,276)

8.0% -2.3% 2.0%

(46,526) -7.3%

(47,758) -7.7%

2.6%

18,180 2.9%

15,111 2.4%

20.3%

(2,126) 7

(2,114) 13

-0.6% -47.4%

16,061 2.5%

13,010 2.1%

23.5%

(97) (7,710) (7,614) (15,420)

(147) (17,472) (7,960) (25,579)

34.4% 55.9% 4.3% 39.7%

641 0.1%

(12,569) -2.0%

105.1%

(1,650)

(3,875)

57.4%

(1,009)

(16,444)

93.9%

0

(58,311)

100.0%

(1,009)

(74,755)

98.6%

(149)

(142)

-4.6%

(1,158) -0.2%

(74,897) -12.1%

98.5%

Effective Margin % of Turnover

Operating Expenses % of Turnover EBITDA % of Turnover Depreciation and Amortization Gains / (Losses) on Sale of Assets 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 Net Profit of Discontinued Operations Net Profit Non-Controlling Interests Net Profit % of Turnover

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

Dec-16

Dec-15

77,097

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

77,621

4

21

137,186

131,647

4,742

6,761

219,029

216,050

199,021

190,613

80,472

76,828

Current Income Tax Receivable

6,946

6,405

Taxes Receivable - Other Than Income Taxes

3,237

5,439

11,854

18,116

Current Assets

301,530

297,401

TOTAL ASSETS

520,559

513,451

Registered Share Capital, Equity Reserves, Non-Controlling Interests

315,137

314,988

Supplementary Capital Payments

135,172

135,172

(428,063)

(353,166)

(1,158)

(74,897)

21,087

22,097

90,600

100,247

3,062

2,173

0

398

93,662

102,818

Non-Current Assets Inventories Accounts Receivable

Cash & Marketable Securities

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

16,738

28,992

352,173

326,205

419

535

36,480

32,803

Current Liabilities

405,809

388,535

TOTAL LIABILITIES

499,471

491,354

TOTAL LIABILITIES & SHAREHOLDERS EQUITY

520,559

513,451

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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