Reditus : ANNUAL RESULTS 2016

• Operating Income of EUR 44,9 million (vs. EUR 58,4 million)
• EBITDA of EUR 2,8 million (vs. EUR 6,9 million)
• EBITDA margin 6.1% (vs. 11.8%)
• Net income of EUR -2.901 thousand (vs. EUR +264 thousand)
• International sales represent 39% of total
• Summary of the Activity

  FY 2016 was marked by a significant change in the Group, which occurred in the last quarter of the year.

  In fact, on November 4thReditus entered into an agreement with GFI Informatique and its affiliate GFI Portugal, for the sale of its subsidiary ROFF - Consultores Independentes, S.A., specialized in the segment of SAP applications.

  Reditus SGPS - Sociedade Aberta Capital Social 73.193.455 Euros Sede Av.5 Outubro, nº 125, Loja 2, 1050-052 Lisboa

  Registada na C.R.C. de Lisboa sob o nº único de matrícula e pessoa colectiva 500 400 997.

  This divestiture is part of the strategic repositioning of the Reditus Group, allowing it to focus on the core business and accelerate the internal restructuring process (operational and financial), as well as to create the conditions for the implementation of its Business Plan based on the broadening and growth of its BPO and ITO activities, both in the domestic and in the international markets.

  The results for 2016, presented below, are compared with the restated values for the FY 2015.

  Operating income amounted to 44,9 million euros, down 23.2% over last year, due to business contraction in the main African market and to the persistence of an adverse economic environment in the domestic market.

  There have been postponements in investment decisions to be made by clients in the period under review, while being expected that these will resume in 2017 with a special focus on several projects in the international market.

  EBITDA was 2,8 million euros, equivalent to an EBITDA margin of 6.1%, 5.7pp below the margin of 11.8% achieved last year.

  It should be noted that the consolidated EBITDA of 2,8 million euros was negatively affected by approximately 0,9 million euros, relating to extraordinary, "one-off" capital loss situations in the year. Adjusted for these costs, it would have reached a value of 3,7 million euros, or an EBITDA margin of 8.1%.

  2016 ANNUAL RESULTS 1

• Consolidated Indicators

• Consolidated Operating Revenues

  The Consolidated Operating Revenues amounted to 44,9 million euros in 2016, against 58,4 million euros or a decrease of 23.2% over last year, mainly due to the postponement of investment decisions and contraction of the business in African markets, as well as the persisting adverse economic environment in the domestic market

  Business in the domestic market contracted 30.9% over 2015, and the difficulties in the international market, particularly in Africa, continued to occur, with negative impact on the Group's international revenue, which decreased 7.1% over lastyear.

  International sales represented 39% of the Group's total revenues, which compares to 32% in 2015, even taking into account Roff's exclusion from the consolidation perimeter.

  Operating Revenues

  € Millions

  58,4

  -23,2%

  18,9

  44,9

  -7,1%

  17,6

  39,5

  -30,9%

  27,3

  2015

  2016

  Portugal International

  Reditus SGPS - Sociedade Aberta Capital Social 73.193.455 Euros Sede Av.5 Outubro, nº 125, Loja 2, 1050-052 Lisboa

  Registada na C.R.C. de Lisboa sob o nº único de matrícula e pessoa colectiva 500 400 997.

  2016 ANNUAL RESULTS 2

• Operating Expenses

  Consolidated operating expenses, net of depreciation, provisions and adjustments amounted to 42,1 million euros in 2016, 18.2% lower than in the last year and accounted for 93.9% of total income, compared to 88.2% in the year before

• Operational Result before Amortizations (EBITDA)

  Consolidated EBITDA reached 2,8 million euros, which compares with 6,9 million euros in 2015. The EBITDA margin was 6.1%, or 5.7pp below the margin of 11.8% achieved in 2015.

  It should be noted that the consolidated EBITDA of 2,8 million euros was negatively affected by approximately 0,9 million euros, relating to extraordinary, "one-off" capital loss situations in the year. Adjusted for these costs, it would have reached a value of 3,7 million euros, or an EBITDA margin of 8.1%.

  EBITDA

  € Millions

  Reditus SGPS - Sociedade Aberta Capital Social 73.193.455 Euros Sede Av.5 Outubro, nº 125, Loja 2, 1050-052 Lisboa

  Registada na C.R.C. de Lisboa sob o nº único de matrícula e pessoa colectiva 500 400 997.

• Net Income

Depreciations, Amortizations, Provisions e Adjustments amounted to 2,8 million euros, a decrease of 34.0% from last year.

Operating income (EBIT) was negative with 10 thousand euros, against a positive value of 2,7 million euros in 2015.

Net financial expenses recorded a positive performance, registering 2,9 million euros in 2016 or a decrease of 25.5% over last year. This performance reflects the improved financing conditions through the renegotiation of the main credit lines, namely in what concerns to their average pricing.

2016 ANNUAL RESULTS 3

Income from Continued Operations was a negative 2,7 million euros, against a negative value of 1,8 million euros last year, or a decrease of 46.7%.

The Consolidated Net Income shows a loss of 2,9 million euros, against a gain of 264 thousand euros last year.

From EBITDA to Net Income

€ Thousand

2.751

EBITDA

2.761

Amortizations, provisions and adjustments

EBIT

-10

-2.883

Financial results

Taxes and minority interests

187

Income from discontinued operations

-194

-2.901

Reditus SGPS - Sociedade Aberta Capital Social 73.193.455 Euros Sede Av.5 Outubro, nº 125, Loja 2, 1050-052 Lisboa

Registada na C.R.C. de Lisboa sob o nº único de matrícula e pessoa colectiva 500 400 997.

Net income

2016 ANNUAL RESULTS 4