Santa Fe A/S : SFG Interim Report H1 2016 — Company announcement No. 8/2016

H1/2016

Company Announcement No. 8/18 August 2016

SANTA FE GROUP A/S · INTERIM REPORT H1 2016

Company Announcement No. 8/18 August 2016

Consolidated highlights from Q2 2016:

• Revenue in the low season second quarter decreased by 7.5% in local currencies to EUR 76.4m (EUR 85.8m).

• Revenue from Relocation Services decreased by 6.5% in local currencies, constituting 17% (16%) of Group revenue.

• Despite lower revenue, restructuring intiatives and cost containment lead to an unchanged EBITDA before special items of EUR 0.0m (EUR 0.0m).

• Continuing operations generated a net loss of EUR -4.3m (EUR -2.4m).

• Restructuring initiatives was during Q2 executed and embedded according to plan.

  Consolidated highlights from the first 6 months of 2016:

• Revenue in the first half decreased by 4.8% in local currencies to EUR 156.2m (EUR 169.0m).

• Relocation Services grew by 0.4% in local currencies, constituting 16% (15%) of Group revenue.

• EBITDA before special items was EUR -1.2m (EUR -1.1m).

• Continuing operations generated a net loss of EUR -8.6m (EUR -6.0m).

  Subsequent events:

• Divestment of the Records Management business in 10 countries announced on 2 August 2016 with an expected gain of EUR 16m over carrying amounts and net proceeds after tax of around EUR 24m.

  Full-year outlook revised:

  The start to the summer peak season has disappointed with the Brexit impact being more severe than expected which combined with the continued uncer- tainty in Australia has triggered a revised full-year outlook.

• Revenue is expected to be in the range of EUR 320m - EUR 350m (previously expected to be at the 2015 level of EUR 373.6m).

• EBITDA before special items is expected to be in the range of EUR 10m - EUR 14m (previously EUR 13m- EUR 15m).

• Special items are expected to be an income of around EUR 13m in line with the announcement on 2 August 2016 (announcement no. 7/2016). Special items include an expected divestment gain of EUR 16m from the Records Management divestment.

Commenting on the results, Group CEO Martin Thaysen says:

"We had excellent traction on our Strategic Initiatives during Q2 - completing the restructuring in Australia and clustering a number of country organisations in Europe into stronger and more agile units. Phase 1 of our Core Technology programme is on track for implementation before end of 2016 and the Brexit referendum in the United Kingdom created a lot of interest in our Immigration Services.

Brexit has turned out far more severe than anticipated, with UK business and UK based customers substantially reducing activity levels. The Australian elec- tion also didn't resolve any of the uncertainty in Australia. These key adverse market, have led to a disappointing revenue decline in Q2. As a consequence of the further revenue weakness in July, we don't expect market conditions to improve within 2016 and have revised the outlook accordingly. The intake of new corporate customers during Q2 was satisfactory and our customer retention rate is very high, so we are well positioned for an upcoming improvement in market conditions."

Comparative figures for 2015 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 2016 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.

The ratios have been calculated in accordance with definitions on page 81 in the Annual Report 2015. For the detailed income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement, refer to pages 9-13.

CONSOLIDATED INCOME STATEMENT - H1

Revenue of the Santa Fe Group was EUR 156.2m in H1 2016 (EUR 169.0m) equivalent to a revenue decline of 7.6% in EUR and 4.8% in local currencies. The decline was seen in Australia and Europe.

Developments in exchange rates between the reporting currency EUR and the functional curren- cies of subsidiaries affected the Group revenue for H1 2016 negatively by EUR 4.7m. This was mainly due to the depreciation of AUD and secondarily GBP versus EUR.

Currency impact

EURm Growth H1 Revenue 2015 169.0

Currency translation

adjustment -2.8% -4.7 Organic growth in

local currencies -4.8% -8.1

Revenue 2016 -7.6% 156.2

EBITDA before special items of EUR -1.2m (EUR -1.1m) was slightly below H1 2015. The neg- ative impact from the reduced revenue was to a large extent offset by fixed costs savings, primarily within staff costs following restructuring in several key markets.

Developments in exchange rates between the reporting currency EUR and the functional cur- rencies of subsidiaries had no material impact on EBITDA before special items.

Special items were an expense of EUR 1.5m in H1 2016 (EUR 0.7m) mainly covering restructuring cost in Europe where a number of country organi- sations have been combined into larger and more agile organisational units.

Amortisation and depreciation of intangi- bles, property, plant and equipment in H1 2016 was EUR 3.8m (EUR 3.8m) of which the am- ortisation of the WridgWays trademark accounted for EUR 0.7m (EUR 0.8m).

Financial expenses and income, net was an expense of EUR 0.9m during H1 2016 (EUR 3.0m). Financial expenses of EUR 1.0m (EUR 3.2m) were primarily related to interest expenses on bank facilities of EUR 0.9m (EUR 1.1m). Exchange losses were EUR 0.1m (EUR 2.1m). In H1 2015

foreign exchange losses were affected by realised exchange losses on receivables and payables as well as unrealised exchange losses on intercom- pany loans.

The effective tax rate for H1 2016 was impacted negatively by non-deductible amortisation of trademarks and certain entities not recognising deferred tax assets in respect of losses for the pe- riod due to uncertainty with respect of utilisation.

Net profit from continuing operations in H1 2016 was a net loss of EUR 8.6m (EUR 6.0m).

Non-controlling interests' share of net profit attributable to the minority shareholder in Santa Fe China amounted to EUR 0.4m for H1 2016 (EUR 0.2m).

Santa Fe Group A/S' share of the net loss for H1 2016 was a loss of EUR 9.0m versus a loss of EUR 6.2m in H1 2015.

CONSOLIDATED INCOME STATEMENT - Q2

Revenue of the Santa Fe Group was EUR 76.4m in Q2 2016 (EUR 85.8m) equivalent to a revenue decline of 11.0% in EUR and 7.5% in local curren- cies. The decline was seen in Australia suffering from soft market conditions as well as the delay in won business activity to offset the impact of lost business. Also Europe had a quiet quarter in some key markets. Especially in the UK the uncertainties around Brexit has reduced the market activities dramatically in the quarter.

EBITDA before special items of EUR 0.0m (EUR 0.0m) was on par with Q2 2015. The reduced revenue had a negative impact on earn- ings, which to a large degree was offset by fixed costs savings, primarily within staff costs following a number of restructuring initiatives.

Special items was an expense of EUR 1.2m in Q2 2016 (EUR 0.3m) due to restructuring costs in France, Germany and Switzerland plus ongoing restructuring in Australia.

Financial expenses and income, net was an expense of EUR 0.6m during Q2 2016 (EUR 1.6m). Financial expenses of EUR 0.5m (EUR 1.7m) was primarily related to interest expenses of EUR 0.4m (EUR 0.8m) which decreased compared to Q2 2015 following the new bank facility entered into in Q2 2015. Exchange losses were EUR 0.1m (EUR 0.9m). In Q2 2015 foreign exchange losses were affected by realised exchange losses on receiva- bles and payables.

Net profit from continuing operations in Q2 2016 was a net loss of EUR 4.3m (EUR 2.4m).

Non-controlling interests' share of net profit attributable to the minority shareholder in Santa Fe China amounted to EUR 0.4m for Q2 2016 (EUR 0.2m).

Santa Fe Group A/S' share of the net loss for Q2 2016 was a loss of EUR 4.7m versus a loss of EUR 2.6m in Q2 2015.

CONSOLIDATED BALANCE SHEET

Total equity by the end of H1 2016 was EUR 88.4m (EUR 96.5m) corresponding to a solvency ratio of 37.6% (38.1%). The equity was negatively impacted by the loss for the first six months

combined with foreign currency translation adjust- ments and dividends to non-controlling interests.

Working capital employed amounted to EUR 6.3m (EUR 13.1m) equivalent to a decrease of 48.8% in local currencies. The improvement was closely related to the continued successful efforts to reduce overdue receivables.

Invested capital decreased by 11.4% in local currencies to EUR 94.5m (EUR 108.9m). The reduction was primarily driven by the decrease in working capital employed.

Return on average invested capital (ROIC) in H1 2016 was -13.3% (-10.7%).

Net interest bearing debt amounted to EUR 12.6m (EUR 21.0m) equivalent to a decrease of 38.9% in local currencies versus H1 2015. Improve- ments in working capital employed contributed

to the decrease. Loan facilities being renewed in August 2016 are presented as current (For further information refer to the Refinancing section).

Net interest bearing debt

EURm H1 2016 H1 2015

Loans and credit facilities 31.2 38.5

Mortgage 4.2 4.3

Finance lease 4.9 5.1

Total borrowings 40.3 47.9

Cash and cash equivalents -27.7 -26.9

Net interest bearing debt 12.6 21.0

Cash outflow from operating activities of EUR 1.4m (EUR 0.0m) was predominantly a result of the operating loss for the period to some extent offset by the working capital improvements of EUR 3.5m.

Cash outflow from investing activities of EUR 1.1m (EUR 1.2m) was primarily related to investments in development and software costs associated with new technology platform for the Santa Fe Group.

Cash outflow from financing activities was EUR 0.3m (EUR -8.3m).

Condensed cash flow statement

EURm H1 2016 H1 2015

Cash flow from

operating activities -1.4 0.0

Cash flow from

investing activities -1.1 -1.2

Free cash flow -2.5 -1.2 Cash flow from

financing activities -0.3 8.3

Cash flow for the year -2 .8 7.1