SAG GEST Soluções Automovel Globais : – Soluções Automóvel Globais, SGPS, SA announces the Consolidated Results for the 3rd Quarter 2017

Estrada de Alfragide, nº 67, Amadora Registered Capital: 169,764,398 Euros

Registered in the Amadora Companies Registration Office under legal entity number 503 219 886

ANNOUNCEMENT

• Consolidated Turnover was up 3.0% to Eur 474.7 million from the same period of 2016 (Eur 460.8 million)
• SIVA's total volume (22,752 units) represented a 4.9% decline, which includes a 6.0% (826 units) volume increase in the Dealer Networks and a 18.5% (1,043 units) volume decline in the Rent-a-Car business
  • Consolidated EBITDA was Eur 11.4 million, a 23.6% decline (Eur 3.5 million) when compared to same period last year, mainly due to sales on wholesaler's channels of Buy Backs cars resulting from sales in the Rent-a-Car channel in previous years and to the reinforcement of investment in commercial campaigns to support the SIVA Brands
• Earnings Before Taxes (EBT) was negative Eur 2.5 million (Eur 1.6 million during the same period in 2016)
• Consolidated Net Profit was negative Eur 3.7 million (loss of Eur 0.9 million in the same period last year)
• Consolidated Net Debt was Eur 152.7 million on 30 September 2017, an increase when compared to 30 December 2016 (Eur 95.5 million) resulting from seasonality and working capital requirements mainly in Buy-Back used cars inventories

• OPERATIONAL PERFORMANCE

• Automotive Distribution

  During the first three quarters of 2017, the Light Passenger Vehicles market recorded a 7.9% (12,585 Cars) increase when compared with the same period in 2016, with a total volume of 171,511 units. This behavior was once again driven by robust 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 29.0% increase during the first nine months of 2017.

  Volume in the Light Commercial Vehicles market increased 10.5% to 27,173 units.

  The total Light Vehicles market recorded an overall growth of 8.3%, with a total volume of 198,684 units (183,525 in the first nine months of 2016).

  Volume of the Brands represented by SIVA was 22,752 units, a 4.9% (1,178 cars) decrease when compared to the 23,930 units recorded during the first three quarters 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 channel, the volume of the Brands represented by SIVA in 2017 recorded a 18.5% (1,043 units) decrease when compared with the same period of 2016, with SIVA privileging the distribution channels associated with the Brands' Dealership Networks, where volume increased 6.0% (826 units) when compared with the same period of the previous year.

  The share of the Dealership Networks in the total volume of the Brands represented by SIVA increased from 46.9% in the first three quarters of 2016 to 54.2% during the same period of 2017, while the Rent-a-Car channel volume decreased from 18.3% in 2016 to 15.4% in 2017.

  Therefore, SIVA's market share was 11.5%, 1.5p.p. lower than the same period in 2016.

• Volkswagen - Passenger Cars, with 12,697 units (a 3.8% decrease when compared with the volume of 13,196 units recorded during the same period in 2016), recorded a 7.4% market share (8.3% in 2016) in the Light Passenger Vehicles market. The change in volume in this Brand is related to the 19.9% volume decline in the Rent-a-Car segment.

• Audi's volume was 6,903 units, a 0.4% increase when compared with the 6,876 units volume recorded during the same period last year. In spite of a volume decrease in Rent-a-Car segment the Brand achieved a volume similar to 2016 due to growth in the Dealer Network Channel.

• Skoda's volume decreased 23.4% to 1,744 units (2,278 during the same period in 2016) due to the product cycle of the Brand and to the significant decline of 53.1% (403 cars) 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 1,400 units, decreased 11.1% when compared with the nine months ended of 2016 (1,575 units).

  In this context, and with the significant increase in the investment in the advertising and commercial activity supporting the Brands represented by SIVA, EBITDA of the Distribution Area (Eur 12.7 million) was down 22.1% (Eur 3.6 million) when compared with the same period last year (Eur 16.3 million). This decline was mainly due to a higher volume of the wholesaler's channel on used cars' sales and to the product cycle, of represented brands, that will be start a trend change by the end of 2017 with new VW Polo and T-Roc that will be produced in Portugal.

• Automotive Retail

  During the first three quarters of 2017, the Soauto Dealers (Soauto SA, Loures Automóveis, Rolporto and Rolvia) sold 3,311 new cars of the Volkswagen, Audi, Skoda and Volkswagen - Commercial Vehicles Brands, which represented a 2.3% 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 1,352 units, similar to the volume achieved during the same period in 2016.

  The After-Sales (workshops) activity recorded a volume of 134,192 hours sold, a 2.9% increase when compared with the same period in 2016.

  Turnover increased 0.2% to Eur 98.2 million (Eur 98.0 million in the same period last year), and Parts Activity decrease 2.9% affecting the total EBITDA.

  EBITDA of the Automotive Retail area decreased 7.8% when compared with the same period in 2016 to Eur

  2.3 million (Eur 2.5 million during the first nine months of 2016).

• ECONOMIC AND FINANCIAL RESULTS

• Consolidated Turnover for the first nine months in 2017 was Eur 474.7 million, a 3.0% increase when compared with the Eur 460.8 million recorded during the same period in the previous year.

• Consolidated Contribution Margin increased 0.3% when compared with the nine months of 2016, representing 10.3% of Consolidated Turnover (10.6% during the same period in 2016). Impact of margins achieved with the sale of semi-new cars from sales made to Rent-a-Car operators in previous years (which were still affected by the emissions crises) was the major cause for worsening of the Consolidated Contribution Margin in 2017.

• Operating Expenses increased 10.8% when compared with the first nine months of 2016, mainly due to the increase in the advertising and campaigns to support the activity of the Brands represented by SIVA, focused on improving the Brands' awareness among Customers). Consequently, Consolidated EBITDA during the first nine months of 2017 (Eur 11.4 million) decreased 23.6% (Eur 3.5 million) when compared with Eur 14.9 million recorded during the nine months of 2016.

• Earnings Before Interest and Taxes (EBIT) was Eur 9.5 million, a decrease of 28% (Eur 3.7 million) when compared with Eur 13.3 million in the nine months of 2016.

• Consolidated net financial expenses recorded a marginal increase (Eur 0.43 million or 3.0%) when compared with the first three quarters of 2016.

• Consolidated Equity was affected by the results recorded during the first nine months of 2017 (Eur 3.8 million) and were Eur 17.4 million on 30 September 2017.

• On 30 September 2017, Consolidated Net Debt was Eur 152.7 million, an increase of Eur 57.2 million (59.9%) when compared with Eur 95.4 million, recorded as at 31 December 2016 reflecting seasonal fluctuations in the activity, almost exclusively in inventory levels.

Alfragide, 30 November 2017

José Maria Cabral Vozone, Investor Relations

9 months ended 30 September

2017 2016 % Chg

(Unaudited)

Consolidated Income Statement (000)