SAG GEST Soluções Automovel Globais : – Soluções Automóvel Globais, SGPS, SA announces the Consolidated Results for the 1st Half 2017

ANNOUNCEMENT

• Consolidated Turnover in the first half of 2017 (Eur 331.3 million) increased 2.8% when compared with the same period in 2016 (Eur 322.3 million)
• The volume of new Cars sold by SIVA (16,794 units) declined 6.3%, which includes a 1.4% increase (129 units) in the volume associated with the Brands' Dealer Networks and a 16.9% decline (895 units) in the volume of the Rent-a-Car business
• Consolidated EBITDA was Eur 9.7 million, a 4.8% decline (Eur 0.5 million) when compared with the same period in 2016, as a result of increased investment in advertising and commercial campaigns to support the Brands represented by SIVA
• Earnings Before Taxes (EBT) was Eur 0.5 million (Eur 1.7 million in the same period in 2016)
• Consolidated Net Profit was marginally negative (Eur 0.6 million), similar to the same period last year (loss of Eur 0.3 million)
• Consolidated net debt on 30 June 2017 was Eur 111.8 million

1. OPERATIONAL PERFORMANCE
2. Automotive Distribution

   During the 1st Half in 2017, the Light Passenger Car market recorded a 7.2% (8,573 Cars) increase when compared with the same period in 2016, with a total volume of 127,199 units. This behaviour was once again driven by strong growth in the Rent-a-Car segment where, according to data released by ARAC (the Portuguese Car Rental Association), the number of cars delivered to Rent-a-Car operators recorded a 32.3% increase during the f1st Half of 2017.

   Volume in the Light Commercial Car market increased 12.6% to 18,698 units.

   The total Light Car market recorded an overall growth of 7.9%, with a total volume of 145,897 units (135,239 in the first six months of 2016).

   The volume of the Brands represented by SIVA was 16,794 units, a 6.3% (1,124 cars) decrease when compared to the 17,918 units recorded during the 1st Half of 2016. This was essentially caused by the strategic decision to not follow the strong growth recorded by the Rent-a-Car segment, where most sales are performed with buy-back clauses. In this segment the volume by the Brands represented by SIVA recorded a 16.9% (895 units) decrease when compared with the 1st Half of 2016. In the distribution channels associated with the Brands' Dealership Networks, volume increased 1.4% (129 units) when compared with the first half of the previous year.

   The share of the Dealership Networks in the total volume of the Brands represented by SIVA increased from 51.2% in the 1st Half of 2016 to 55.4% during the same period of 2017, while the Rent-a-Car channel volume decreased from 29.6% in 2016 to 26.2% in 2017.

   As a consequence, SIVA's market share was 11.5%, 1.7% lower than during the same period in 2016.

   • Volkswagen - Passenger Cars, with 9,774 units (a 2.6% decrease when compared with the volume of 10,039 units recorded during the same period in 2016), recorded a 7.7% market share (8.5% in 2016) in the Light Passenger Car market. The change in volume in this Brand is related to the 12.2% volume decline (397 cars) in the Rent-a-Car segment.

   • Audi's volume was 4,792 units, a 2.9% decline when compared with the 4,933 units volume recorded during the same period last year, due to a product cycle that is undergoing a major overhaul, aggressive competitive activity as well as reduced volume in the Rent-a-Car segment.

   • Skoda's volume decreased 30.8% to 1,222 units (1,767 during the same period in 2016) due to the product cycle and to the significant 58.2% (435 cars) decline in Rent-a-Car segment, in addition to effects from the major restructuring of the Brand's Dealership Network performed in 2016.

   • Volkswagen - Commercial Vehicles, with 1,001 units, decreased 14.9% when compared with the 1st Half of 2016 (1,176 units).

     In this context, and with the significant increase in the investment in commercial activity supporting the activity of the Brands represented by SIVA, EBITDA of the Distribution Area (Eur 10.1 million) was down 9.1% (Eur 1.0 million) when compared with the same period last year (Eur 11.1 million).

3. Automotive Retail

   During the1st Half of 2017, the Soauto Dealers (Soauto SA, Loures Automóveis, Rolporto and Rolvia) sold 2,283 new cars of the Volkswagen, Audi, Skoda and Volkswagen - Commercial Vehicles Brands, which represented a 1.1% increase when compared with the same period last year, in line with growth recorded in the SIVA Dealer Networks. In the Used Car activity, the Soauto Dealers sold 959 units, a 1.1% increase when compared with the 949 units sold during the same period in 2016.

   The After-Sales activity recorded a volume of 94,013 billed hours sold, a 4.0% increase when compared with the same period in 2016.

   EBITDA of the Automotive Retail area increased 1.6% when compared with the 1st Half of 2016 to Eur 1.9 million (Eur 1.9 million during the first six months of 2016).

4. ECONOMIC AND FINANCIAL RESULTS

5. • Consolidated Turnover during the 1st Half in 2017 was Eur 331.3 million, a 2.8% increase when compared with the Eur 322.3 million recorded during the same period in the previous year.

   • Consolidated Contribution Margin increased 7.1% when compared with the 1st Half of 2016, representing 10.6% of Consolidated Turnover, recording an improvement in the business' margin (10.2% during the same period in 2016).

   • Operating Expenses increased 12.5% when compared with the first six months of 2016, mainly due to the increase in the advertising and commercial activity investment required to support the activity of the Brands represented by SIVA, focused on improving the Brands' awareness among Customers). Consolidated EBITDA during the 1st Half of 2017 (Eur 9.7 million) decreased 4.8% (Eur 0.5 million) when compared with Eur 10.2 million recorded during the 1st Half of 2016.

   • Earnings Before Interest and Taxes (EBIT) was Eur 8.6 million, decreased 7.5% (Eur 0.7 million) when compared with Eur 9.3 million in the 1st Half of 2016.

   • Consolidated net financial expenses increased marginally (Eur 0.4 million or 5.9%) when compared with the 1st Half of 2016. Interest coverage by EBITDA was 1.2 times.

   • Consolidated Equity which, within the scope of the capitalisation transactions performed in 2015, is no longer exposed to exchange rate risk (due to the sale of SAG Gest's investment in Unidas), remained essentially unchanged when compared with the balance as at 31 December 2016, only being affected by the results recorded during the 1st Half of 2017 (Eur 0.6 million) and is Eur 20.5 million on 30 June 2017.

   • On 30 June 2017, Consolidated Net Debt was Eur 111.8 million, an increase of Eur 16.3 million (17.1%) when compared with Eur 94.5 million, recorded as at 31 December 2016. This represents a decrease of approximately Eur 4.0 million when compared with Consolidated Net Debt on 31 March 2017 (Eur 115.9 million), reflecting seasonal fluctuations in the activity, almost exclusively related with inventory levels at any given point in time.

   Alfragide, 31 August 2017 José Maria Cabral Vozone Investor Relations

   CONSOLIDATED STATEMENT OF PROFIT AND LOSS (Thousands of Euros)

   (Unaudited)

   Consolidated Income Statement (Values in Eur 000)	6 months ended 30 June
   	2017	2016	% Chg
   Sales	325.573	316.930	2,7%
   Services Rendered	5.722	5.338	7,2%
   Turnover	331.295	322.267	2,8%
   Contribution Margin	35.203	32.863	7,1%
   % of Turnover	10,6%	10,2%
   General, Sales & Administrative Expenses - Commerc ial Expenses	(6.107)	(4.903)	-24,5%
   General, Sales & Administrative Expenses - Car Expenses	(1.450)	(849)	-70,8%
   Sub Total Variable Expenses	(7.557)	(5.752)	-31,4%
   General, Sales & Administrative Expenses - Non Variable Expenses	(6.952)	(6.599)	-5,3%
   General, Sales & Administrative Expenses - Payroll Expenses	(10.972)	(10.298)	-6,5%
   Sub Total Overheads	(17.924)	(16.898)	-6,1%
   Operating Expenses	(25.481)	(22.650)	-12,5%
   EBITDA	9.721	10.213	-4,8%
   % of Turnover	2,9%	3,1%
   Depreciation and Amortization	(1.135)	(1.027)	-10,6%
   Provisions	99	-100,0%
   EBIT	8.586	9.284	-7,5%
   % of Turnover	2,6%	2,9%
   Income from Associated Companies - Equity Method	4	1	304,3%
   Net Interest	(3.789)	(3.453)	-9,7%
   Other Financial Expenses	(4.261)	(4.148)	-2,7%
   Net Financial Income / (Expenses)	(8.046)	(7.600)	-5,9%
   EBT	540	1.684	-67,9%
   % of Turnover	0,2%	0,5%
   Income Tax	(1.092)	(1.884)	42,0%
   Net Profit	(552)	(200)	-176,5%
   Non-Controlling Interests	(77)	(96)	19,7%
   Net Profit Attributable to SAG Gest's Shareholders	(630)	(296)	-112,7%
   % of Turnover	-0,2%	-0,1%