Santa Fe A/S : SFG Delårsrapport 1. Halvår 2017 Selskabsmeddelelse nr. 8/2017

H1INTERIM REPORT17

Company Announcement No. 8/30 August 2017

CONTENTS

MANAGEMENT REVIEW

HIGHLIGHTS H1 02

FINANCIAL HIGHLIGHTS AND

KEY RATIOS 03

FINANCIAL REVIEW 04

BUSINESS LINE PERFORMANCE 06

FINANCIAL STATEMENTS

INCOME STATEMENT 09

STATEMENT OF COMPREHENSIVE

INCOME 10

BALANCE SHEET 11

STATEMENT OF

CHANGES IN EQUITY 12

CASH FLOW

STATEMENT 13

NOTES 14

STATEMENT 16

Consolidated highlights from Q2 2017:

• Improved margins in the core Moving and Relocation Services businesses, driven by fixed cost savings and efficiency improvements.

• Revenue decreased by 2.0% in local currencies to EUR 69.7m (EUR 71.7m) in the continuing Moving and Relocation Services businesses, despite a good performance in the main sales region Europe.

• Total revenue was down 6.4% in local currencies to EUR 71.0m (EUR 76.4m) following the divestment of Records Management activities.

• Revenue from higher-margin Relocation Services increased by 4.0% in local currencies, constituting 18% (17%) of Group revenue.

• EBITDA before special items was EUR -0.1m (EUR 0.0m or EUR -0.6m when adjusted for the divested Records Management activities).

• Net loss was EUR -1.3m (EUR -4.3m).

• Strategic initiatives, including the migration of back-office functions to the Philippines, are implemented according to plan.

  Consolidated highlights from the first 6 months of 2017:

• Revenue decreased by 4.1% in local currencies to EUR 139.1m (EUR 146.9m) in the continuing Moving and Relocation businesses.

• Total revenue decreased by 9.1% in local currencies to EUR 142.4m following the divestment of Records Management activities.

• Revenue from higher-margin Relocation Services increased by 3.3% in local currencies, constituting 18% (16%) of Group revenue.

• EBITDA before special items was EUR -1.7m (EUR -1.2m or EUR -2.3m when adjusted for the divested Records Management activities).

  Subsequent events:

• On 7 July 2017, the Group completed the acquisition of the remaining 50% minority shareholding in Sino Santa Fe for a consideration of EUR 5.1m.

  Full-year outlook revised:

  Although the Group continues to anticipate growth in its mobility business during the second half-year, the start to the summer peak season has indicated that activity levels particularly in Asia will not be strong enough to compensate for the revenue shortfall from the divested Records Management activities. On the other hand, the Group has confidence in the ability of various cost saving programmes to substantially mitigate the impact of the lower revenue.

• The Santa Fe Group's consolidated revenue is now expected to be in the range of EUR 310m-320m (previously at the same level as in 2016: EUR 338.6m)

• Consolidated EBITDA before special items is now expected to be in the range of EUR 8m-10m (previously around EUR 10m).

• Special items are expected to be a net gain of around EUR 2m (in line with the previous expectations).

Commenting on the results, Group CEO Martin Thaysen says:

"Q2 was a very busy quarter for our organisation, as we welcomed new corporate clients signed up during Q4 2016/Q1 2017 while at the same time gearing up for the traditional summer peak season. The financial performance during the quarter was broadly in line with

expectations. We are satisfied with the traction we have at the moment in Europe, and we are comfortable that we under new leadership in Australia will start to see a pick-up in the performance there over coming quarters. The markets in Asia are, however, quite soft, and the UK continues to be affected by Brexit uncertainty. Under these conditions, we have adjusted our growth ambitions for the core moving- and relocation activities for the year.

During the quarter, we completed the divestment of Records Management in the remaining 3 out of 10 markets sold to Iron Mountain in 2016. On 7 July, we acquired the remaining 50% of the shares in Sino Santa Fe concluding a successful partnership with China

International Engineering Consulting Corporation, which has served us well for many years. In the US, we continue to explore acquisition- or partnership opportunities with the aim of being able to conclude a transaction within this year.

As we enter 3rd quarter, we are also entering the Phase 2 of our 2020 Strategy and thereby turning our focus from restructuring to growth. Our operating platform has been strengthened significantly over the past couple of years, and we are excited about the opportunities we have to expand from this platform in the next phase"

Comparative figures for 2016 are stated in brackets. All currency effects refer to translation effects from reporting currencies unless otherwise stated.

For additional information, please contact:

Martin Thaysen, Group CEO, +44 20 3691 8300 or Christian Møller Laursen, Group CFO, +44 20 8963 2514 Further information on the Santa Fe Group is available on the Group's website: www.santaferelo.com

Santa Fe Group A/S

East Asiatic House 20 Indiakaj

DK-2100 Copenhagen Ø Denmark

CVR No. 26 04 17 16

Shareholders' Secretariat Telephone: +45 3525 4300

E-mail: investor@santaferelo.com www.santaferelo.com

Disclaimer The 2017 outlook reflects management's expectations of future events and must be viewed in the context of the business environments and currency markets, which may cause actual results to deviate materially from those projected by Santa Fe Group. The outlook is stated at current exchange rates and based on estimated consensus growth rates in key economies as well as present expectations from key corporate customers. Santa Fe's business is seasonal and dependent on the first quarter peak season at the Northern Hemisphere as well as the local fourth quarter peak season in Australia. Hence, the majority of revenue and earnings may be recognized in these periods.

EURm Q2 2017 Q2 2016 H1 2017 H1 2016 FY 2016

EURm 30.06.2017 30.06.2016 FY 2016

The ratios have been calculated in accordance with definitions on page 80 in the Annual Report 2016. For the detailed income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement, refer to pages 9-13.

Revenue in the second quarter decreased by 2.0% in local currencies to EUR 69.7m (EUR 71.7m) in the core Moving and Relocation Services businesses. The decline was mainly seen in some key markets in Asia and Australia, whereas Europe saw growth although the key UK market continues to be affected by Brexit uncertainty.

Revenue of the Santa Fe Group was EUR 71.0m in Q2 2017 (EUR 76.4m) equivalent to a revenue decline of 7.1% in EUR and 6.4% in local currencies, following the divestment of the Records Management businesses in 10 markets.

Margins continued to improve, driven by fixed costs savings from restructuring initiatives completed during 2016 and a higher share of value-added Relocation Services. EBITDA before

special items reached EUR -0.1m (EUR 0.0m or EUR -0.6m on a comparable basis in Q2 2016, adjusted for the divested Records Management activities).

Special items were an income of EUR 2.3m in Q2 2017 (EUR

-1.2m) mainly due to a gain of EUR 3.5m from the divestment of the Records Management activities in India, The Philippines and Indonesia which closed during Q2 2017. As a result, reported EBITDA improved to EUR 2.2m (EUR -1.2m).

Amortisation and depreciation of intangibles, property, plant and equipment in Q2 2017 amounted to EUR 1.5m (EUR 1.9m). The reduction is mainly related to the Wridgways trademark which was written off end 2016 and ceased depreciation on assets held for sale as well as divested assets related to Records Management.

Financial expenses and income, net was an expense of EUR 0.1m during Q2 2017 (EUR -0.5m) primarily related to interest expenses of EUR 0.3m (EUR -0.5m) offset by foreign exchange gains.

Net profit/loss in Q2 2017 was a net loss of EUR -1.3m (EUR

-4.3m).

Non-controlling interests' share of net profit attributable to the minority shareholder in Santa Fe China amounted to EUR 0.3m for Q2 2017 (EUR 0.4m).

Santa Fe Group A/S' share of the net profit/loss for Q2 2017 was a loss of EUR -1.6m (EUR -4.7m).

Establishment of Shared Service Centre

During Q1, Santa Fe Group announced the formal opening of its Manila Service Centre in The Philippines. The Service Centre has taken over several back-office functions from the UK and a few other countries. Further centralisation of other Group and

operational functions will be considered on an ongoing basis. The new resource centre is supporting Santa Fe offices across Asia, Australia, Europe and North America, with highly efficient, high quality accounting, operational and IT processes. The Service Centre now has 75 Santa Fe employees, and is expected to

scale up to more than 100 employees by the end of 2017. The centralisation of the support functions will further enhance service levels towards clients, strengthen global processes and further improve operational efficiencies and margins.

Divestment of Records Management

As previously announced (announcements no. 7/2016 and 11/2016) Santa Fe Group entered into an agreement to divest its Records Management activities in 10 markets to Iron Mountain Inc. against a cash consideration of EUR 27.1m. On December 30 2016, the transaction was closed in 5 of these markets and the closing of

the 5 other markets was completed end February 2017 and 28 April 2017. The divestment resulted in a total divestment gain of

approximately EUR 16.5m and net proceeds before tax of EUR 24.0m of which a gain of EUR 12.2m and net proceeds of EUR 13.4m was recognised during 2016 while a gain of EUR 4.3m and net proceeds of EUR 10.6m have been recognised in 2017. The net gain before tax from the divestment is recognised as special items.

Build-up in the USA

As previously announced, the Group has for some time been scanning the market for acquisition and partnership opportunities that could add supplementary services and capabilities, particularly within home sales, to Santa Fe's American operations and place the Group in a much stronger position. The Group is still aiming for entering into a binding agreement within 2017.

New technology platform

Phase 1 of the CORE Technology programme was launched into the production environment in November 2016 and was fully

deployed by end of February 2017. Amortisation commenced as of March 2017.

It is expected that Phase 2 will be kicked off towards the end of 2017 and will include system support for internal processes. The total investment to be recognised during 2017 is expected to be around EUR 4.0m.

Long Term Incentive Programme

A new long-term incentive programme was launched end of March 2017, cf company announcement no. 5/17. The programme grants up to 510,500 share options to the Executive Board and certain other employees. Executives in Santa Fe have purchased shares in the Company, and on the back of the shares purchased, been granted share options. On completion of the 2017 grant, management now holds 104,865 shares in Santa Fe Group

A/S, and a total of 475,300 options have been granted to the participants (of which 179,000 to the Executive Board). The terms governing the programme are in accordance with the

Remuneration Policy and Incentive Guidelines as approved by the general meeting on 27 March 2017. The grant is offered as part of the continued efforts to create value and align performance with shareholder interests.

Revenue of the Santa Fe Group was EUR 142.4m in H1 2017 (EUR 156.2m) equivalent to a revenue decline of 8.8% in EUR and 9.1% in local currencies. Revenue in the continuing Moving and Relocation Services businesses.decreased by 4.1% in local currencies to EUR 139.1m (EUR 146.9m).

Developments in exchange rates between the reporting currency EUR and the functional currencies of subsidiaries affected the Group revenue positively by EUR 0.4m. This was mainly due to the appreciation of the AUD versus EUR offset by the depreciation of the GBP versus EUR quarter-on-quarter.

EURm Growth in % H1 2017

Revenue 2016 156.2

Currency translation adjustment 0.3 0.4

Divestments, Records Management -3.9 -6.1 Organic growth in local currencies -5.2 -8.1

Revenue 2017 -8.8 142.4

EBITDA before special items reached EUR -1.7m (EUR -1.2m or EUR -2.3m on comparable basis for the core Moving- and Relocation businesses). The reduced revenue had a negative impact on earnings, which to some degree was offset by fixed costs savings, primarily within staff costs, following restructuring initiatives completed during 2016, and other operating income.