Santa Fe A/S : SFG Delårsrapport 1. kvartal 2017 Selskabsmeddelelse nr. 7/2017

Q1INTERIM REPORT17

Company Announcement No. 7/18 May 2017

CONTENTS

MANAGEMENT REVIEW

HIGHLIGHTS Q1 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 15

Consolidated highlights from Q1 2017:

• EBITDA before special items was on plan at EUR -1.6m (EUR -1.2m or EUR -1.7m when adjusted for the divested Records Management activities).

• On comparable basis revenue declined by 8.6% in local currencies (excluding the divested Records Management activities). Total revenue decreased by 11.7% in local currencies to EUR 71.4m (EUR 79.8m).

• Revenue from the higher-margin Relocation Services increased by 2.5% in local currencies, constituting 17% (15%) of Group revenue.

• Margins in the continuing Moving and Relocation Services businesses were supported by delivery of cost savings and efficiency improvements.

• Profit from continuing operations was EUR -3.3m (EUR -4.3m).

• The drive to improve the Group's financial position resulted in further reductions of working capital employed.

• Strategic initiatives, including the migration of back-office functions to a new service centre in the Philippines, continue to be implemented according to plan and support a further reduction of fixed costs.

• New CORE Technology platform rolled out globally.

• Very satisfactory intake of new corporate customers.

  Subsequent events:

• On 28 April 2017, the Santa Fe Group finalised the divestment of Records Management in the remaining markets. The realised gain in 2017 will be around EUR 4.6m and net proceeds of around EUR 10.8m with a total realised gain in 2016-17 of around EUR 16.8m and total net proceeds after tax of around EUR 24.2m.

  Full-year outlook maintained:

  The full-year outlook is maintained and supported by the good intake of new customers which are expected to increasingly contribute to revenue in the remainder of the year.

• The Santa Fe Group's consolidated revenue is expected to be at the same level as in 2016 (EUR 338.6m).

• Consolidated EBITDA before special items is expected to be around EUR 10.0m.

• Special items are expected to be a net gain of around EUR 2m.

Commenting on the results, Group CEO Martin Thaysen says:

"We are very satisfied with our progress on strategy and restructuring as we prepare to move into the second phase of our strategy.

The markets in Europe and Asia were rather soft during the Q1 off-season with lower activity levels from most corporate clients. Our dedicated sales and key account initiatives, however, continue to target growth opportunities and we have secured a very satisfactory intake of new corporate clients during the quarter. As these activities are implemented and gradually ramped up, we expect they will further drive growth from our continuing business in the high season Q3 and in Q4.

We also achieved a significant milestone with the global deployment of our new CORE Technology programme which will further leverage customer experience and will eventually provide a fully-integrated solution for customer service, operations and financial reporting. The platform enables the development of an entirely new digital customer experience, supporting our strategy and growth ambitions."

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 third 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 Q1 2017 Q1 2016 FY 2016

EURm Q1 2017 Q1 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 of the Santa Fe Group was EUR 71.4m in Q1 2017 (EUR 79.8m) equivalent to a revenue decline of 10.5% in EUR and 11.7% in local currencies. On comparable basis (excluding the divested Records Management activities) revenue declined by 8.6% in local currencies. The decline was mainly seen in some key markets in Europe and in Asia.

Developments in exchange rates between the reporting currency EUR and the functional currencies of subsidiaries affected the Group revenue positively by EUR 1.3m. This was mainly due to the appreciation of the AUD versus EUR to some extent offset by the depreciation of the GBP versus EUR quarter-on-quarter.

EURm Growth Q1 2017

Revenue 2017 -10.5% 71.4

EBITDA before special items reached EUR -1.6m (EUR

-1.2m or EUR -1.7m on comparable basis when adjusted for the divested Records Management activities). 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.

Special items was an income of EUR 0.2m (EUR -0.3m) in Q1 2017 mainly due to a gain of EUR 0.4m from divestment of

Records Management activities in Korea and Macau which closed during Q1 2017.

Amortisation and depreciation of intangibles, property, plant and equipment in Q1 2017 amounted to EUR 1.2m (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 0.4m during Q1 2017 (EUR 0.4m) primarily related to interest expenses of EUR 0.4m (EUR 0.4m).

The effective tax rate for Q1 2017 continue to be impacted by certain entities not recognising deferred tax assets in respect of losses for the period due to uncertainty with respect of utilisation primarily in Australia and Europe.

Net profit/loss from continuing operations in Q1 2017 was a net loss of EUR 3.3m (EUR -4.3m).

Non-controlling interests' share of net profit attributable to the minority shareholder in Santa Fe China amounted to EUR 0.1m for Q1 2017 (EUR 0.0m).

Santa Fe Group A/S' share of the net profit/loss for Q1 2017 was a loss of EUR 3.4m (EUR -4.3m).

Joint Venture buyout in Chinese subsidiary

On 20 March 2017 the Santa Fe Group entered into an agreement with the Chinese Joint Venture partner to acquire their 50% shareholding for EUR 5.4m, thereby giving Santa Fe 100% control over the Chinese subsidiary. The share transfer is expected to take place during Q2 2017.

Long Term Incentive Programme

A new long-term incentive programme was launched end of March 2017 granting up to 510,500 share options to the Executive Board and certain other employees under the programme. The terms governing the programme are in accordance with the Remuneration Policy and Incentive Guidelines as approved by

the Company's general meeting on 27 March 2017. The grant is offered as part of the Company's continued efforts to create value and align performance with shareholder interests. The details

of the long-term incentive programme are further described in company announcement no. 5/17 issued 31 March 2017.

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. Further centralisation of other Group and operational functions will be considered on an ongoing basis. The new resource centre will be 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 50

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 the overall operational efficiency.

Divestment of Records Management

As announced on 30 December 2016 (announcement no. 11/2016) Santa Fe Group A/S has 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, 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 16.8m and net proceeds after tax of around EUR 24.2m of which a gain of EUR 12.2m and net proceeds of EUR 13.4m was recognised during 2016 (for further details refer to the Santa Fe Group Annual Report note 4.10 on page 65). A gain of around EUR 4.6m and net proceeds of around EUR 10.8m will be recognised in 2017. The transaction has predominantly taken the form of an asset transfer. The net gain before tax from the divestment is recognised as special items.

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.

Phase 2 will be kicked off during 2017 and will include system support for internal processes. The total investment to be recognised during 2017 is expected to be around EUR 3.0m.