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 for the 1st Quarter 2017

SAG reports positive results, as in the 1st Quarter 2016 Consolidated Turnover for the 1st Quarter 2017 was Eur 154.0 million

EBITDA was 5.1 million

  • Consolidated Sales - Eur 154.0 million - recorded a slight decrease (0.9%) when compared with the 1st Quarter 2016
  • SIVA's new cars volume during the 1st Quarter 2017 (7,798 units) was 9.2% below the 8,585 units recorded during the 1st Quarter 2016, confirming the strategic decision of reducing the Brands' share in the rent-a-car business. The Brands' Dealer Networks volume increased 0.8%, with this channel's weight in SIVA's total volume increasing from 45.9% in the 1st Quarter 2016 to 50.9% in the same period in 2017
  • Contribution Margin was Eur 17.4 million, an Eur 0.7 million (4.3%) increase when compared with the same period in 2016, due to a decrease in the weight of the rent-a- car segment
  • EBITDA was Eur 5.1 million, Eur 0.2 million less than in 2016, with the increase in costs
    • particularly commercial expenses - exceeding gains in the Contribution Margin
      • The Interest Coverage ratio (EBITDA / Net Financial Expenses) remained at around 1.4X
  • Consolidated Net Results were again positive: Eur 0.4 million in the 1st Quarter 2017, with an increase of approximately 66% when compared with the same period in the previous year.
  1. OPERATIONAL PERFORMANCE
    • Automotive Distribution

      • In the 1st Quarter 2017, the Portuguese Passenger Car (PC) Market increased 3.0% when compared with the same period in 2016, with a total of 68,504 units (66,495 in 2016).

      • According to official data provided by ARAC, the volume of new PC's allocated to the rent-a-car segment increased 12% during the same period, with 12,365 units, increasing the weight of this market segment which now accounts for approximately 18% of the total (16.6% in 2016). It is expected that the weight of this segment will continue to increase due to the seasonal effect of Easter in April.

      • The volume achieved by the Brands represented by SIVA was 7,798 units, which represented a decrease of 9.2% when compared with the 8,585 units in the 1st Quarter of 2016.

      • Volume for the rent-a-car segment in the 1st Quarter 2017 was 1,925 units, 25.6% less than in the same period last year. The weight of this segment in the total volume of the Brands represented by SIVA decreased from 30.1% in 2016 to 24.7% in 2017, reflecting SIVA's clear commitment to the market's more profitable segments. The weight of the volume of the Brands' Dealer Networks in the Brands' total volume increased from 45.9% in 2016 to 50.9% in the 1st Quarter 2017.

      • Consequently, SIVA's market share was 11.4%, a 1.5% decrease when compared to the same period in 2016.

        • The Volkswagen - Passenger Car Brand, with a volume of 4,543 units and a 3.7% decrease achieved a 7.6% market share (8.1% in 2016) in the Light Passenger Car market. The Brand decreased its presence in the rent-a-car segment by approximately 12%.

        • The Audi Brand volume was 2,130 units, a 8.4% decrease when compared to the 2,325 units in the same period last year, and a 3.6% market share (4.0% in 2016). The rent-a-car segment decreased approximately 18%.

        • The Škoda Brand decreased 34.5% to 671 units (1,025 units in the same period in 2016), with a decrease of around 75% in rent-a-car volume.

        • The Volkswagen - Commercial Vehicles Brand, with 453 units sold, also decreased (12.4%) when compared with the 517 units recorded in the 1st Quarter 2016.

      • In this context, the Contribution Margin of the Distribution area increased 7.0% when compared with the same period last year and represented 10.3% of the area's turnover (9.5% in the same period in 2016).

    • Automotive Retail

    The number of new vehicles of the Volkswagen, Audi, Škoda and Volkswagen - Commercial Vehicles Brands sold by the Soauto Dealers (Soauto SA, Loures Automóveis, Rolporto and Rolvia) in the 1st Quarter 2017 was 1,147 units, a 4.2% increase when compared to the 1,099 units sold during the same period in the previous year. The Soauto Dealerships sold 478 used cars, a 5.9% increase when compared to the 450 units sold during the same period the year before.

  2. ECONOMIC AND FINANCIAL RESULTS

    • Consolidated Turnover for the 1st Quarter 2017 was Eur 154.0 million, a 0.9% decrease when compared with Eur 155.5 million recorded during the same period the year before.

    • In spite of a decrease in Turnover, Consolidated Contribution Margin amount increased 4.3% (Eur 0.7 million) when compared with the 1st Quarter 2016, and was 11.3% of Consolidated Turnover (10.7% in the same period in 2016) due to the impact of the increase of the weight of more profitable market segments.

    • Variable Expenses increased approximately 23.3% (Eur 0.7 million) when compared with the 1st Quarter 2016, while Overhead Expenses increased by approximately Eur 0.3 million (3.4%).

    • As a consequence, Consolidated EBITDA for the 1st Quarter 2017 (Eur 5.1 million) recorded a marginal decrease of approximately Eur 0.2 million (4.1%) when compared with Eur 5.4 million during the 1st Quarter 2016.

    • Earnings Before Interest and Taxes (EBIT) were Eur 4.6 million, a decrease of Eur 0.3 million (6.4%) when compared with approximately Eur 4.9 million in the 1st Quarter 2016.

    • Consolidated Net Financial Expenses in the 1st Quarter 2017 (Eur 3.6 million) were at the same level as in the same period in 2016, and the Interest Coverage ratio (EBITDA / Net Financial Expenses) was 1.4X in 2017 (1.5X in 2016), basically unchanged when compared with the 1st Quarter 2016.

    • The amount for Corporate Income Tax decreased by around Eur 0.4 million when compared with the 1st Quarter 2016. The amount recorded in 2017 includes the impact of the decrease in the amount of non-deductible interest expenses which is related to the option adopted in 2016, under the applicable tax regulations, of determining that amount under the Special Regime for Taxation of Groups of Companies in which SAG is included, and not on an individual Entity basis.

    • Net Results attributable to SAG Gest was again positive in the 1st Quarter 2017 (approximately Eur 0.4) million, a 65.8% increase when compared with the Net Result recorded during the same period in 2016.

    • On 31 March 2017, Consolidated Equity was Eur 21.5 million, a Eur 0.4 million increase (representing to the Net Results for the 1st Quarter 2017) when compared with 31 December 2016.

    • Consolidated Net Debt, as at 31 March 2017 was Eur 115.9 million, representing an increase of approximately Eur 20.4 million (21.4%) in comparison to Eur 95.5 million on 31 December 2016. Consolidated Net Debt as at 31 March 2017 was, however, less than on 31 March 2016 (Eur 117.0 million).

Alfragide, 26 May 2017 José Maria Cabral Vozone Investor Relations

CONSOLIDATED STATEMENT OF PROFIT AND LOSS (Unaudited)

Consolidated Income Statement (Values in Eur 000)

3 months ended 31 March

2017

2016

% Chg

Sales

150,963

152,498

- 1.0%

Services Rendered

3,052

2,962

3.0%

Turnover

154,015

155,460

-0.9%

Contribution

17,351

16,630

4.3%

% of Turnover

11.3%

10.7%

General, Sales & Administrative Expenses - Commerc ial Expenses

(2,615)

(2,371)

- 10.3%

General, Sales & Administrative Expenses - Car Expenses

(863)

(450)

- 91.6%

Sub Total Variable Expenses

(3,478)

(2,821)

-23.3%

General, Sales & Administrative Expenses - Non Variable Expenses

(3,381)

(3,343)

- 1.1%

General, Sales & Administrative Expenses - Payroll Expenses

(5,358)

(5,110)

- 4.8%

Sub Total Overheads

(8,738)

(8,453)

-3.4%

Operating Expenses

(12,216)

(11,274)

-8.4%

% of Turnover

-7.9%

-7.3%

EBITDA

5,135

5,356

-4.1%

% of Turnover

3.3%

3.4%

Depreciation and Amortization

(538)

(517)

-4.1%

Gains / (Losses) on Sale of Assets

2

3

-23.6%

Provisions

0

69

-100.0%

EBIT

4,598

4,911

-6.4%

% of Turnover

3.0%

3.2%

Income from Associated Companies - Equity Method

2

(0)

3925.9%

Net Interest

(1,877)

(1,795)

- 4.6%

Other Financial Expenses

(1,766)

(1,845)

4.2%

Net Financial Income / (Expenses)

(3,642)

(3,639)

-0.1%

EBT

957

1,272

-24.8%

% of Turnover

0.6%

0.8%

Income Tax

(560)

(994)

43.7%

Net Profit

397

278

43.0%

Non- Controlling Interests

(36)

(60)

40.1%

Net Profit Attributable to SAG Gest's Shareholders

361

218

65.8%

% of Turnover

0.2%

0.1%

SAG GEST - Soluções Automovel Globais SA published this content on 26 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 May 2017 20:11:22 UTC.

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