SAG GEST Soluções Automóvel Globais, SGPS, SA Listed Company Estrada de Alfragide, nº 67, Amadora Registered Share Capital: 169,764,398 euros Registered at the Amadora Registrar of Companies under the single registration and taxpayer no. 503 219 886 ANNOUNCEMENT Consolidated Results for the 1st Quarter 2016 SAG returns to profits on the back of its operational performance and decreased financial expenses following the capitalization operation implemented in December 2015 Consolidated Turnover for the 1 st Quarter 2016 increases 1.3% to Eur 155.3 million EBITDA increases 26.3% to Eur 5.4 million Consolidated Sales Eur 155.3 million record a 1.3% increase SIVA s volume increases 11.5% with the growth in the Rent-a-Car segment, which bears no impact on Turnover EBITDA increases 26.3% (Eur 1.1 million), to Eur 5.4 million, due to a higher contribution from more profitable channels Interest coverage by EBITDA is approximately 1.5x due to a decrease in interest costs associated with the recapitalization and debt reduction operation implemented in December 2015 Consolidated Net Results return to positive: Eur 0.2 million in the 1 st Quarter 2016, in line with the expectations underlying the above changes, recording an increase of nearly 110% over the Eur 2.2 million losses incurred in the same period in 2015 (where Unidas results still contributed Eur 0.9 million) 1
1. OPERATIONAL PERFORMANCE Automotive Distribution The Portuguese Automotive Market maintained the previous years growth trend: during the 1 st Quarter 2016, the passenger car (PC) market increased 25.7% when compared with the same period in 2015, with a total of 66,495 units. The main market growth drivers were the strong volume in the Rent-a-Car segment and the early purchases induced by the announcement of car tax increases, to become effective from April onwards. Volume by the Brands represented by SIVA was 8,585 units, a 11.5% increase as compared to the 7,700 units recorded in the 1 st Quarter 2015. Consequently, SIVA s market share was 12.9%, a 1.7% decrease when compared to the same period in 2015. o o The Volkswagen Passenger Car Brand, with a volume of 4,716 units and a 12.9% increase achieved an 8.1% market share (9.0% in 2015) in the Light Passenger Car market. Volume of the Audi Brand (whose characteristics make it less suited for the Rent-a-Car segment) was 2,325 units, practically the same as the 2,371 units recorded during the same period in the previous year. o The Skoda Brand volume increased 61.4% to 1,025 units (635 in the same period in 2015). o Volkswagen Commercial Vehicles, with a volume of 517 units, remained in line with the volume recorded in the 1 st Quarter 2015 (515 units). In this context, operational cash flow (EBITDA) in the Distribution area increased 25.4% when compared with the same period last year. Net contribution of this business area to consolidated results increased nearly 23%, exceeding Eur 3.7 million (Eur 3.0 million in the same period in 2015). Automotive Retail New vehicles volume of the Volkswagen, Audi, Skoda and Volkswagen Commercial Vehicles Brands at the Soauto Dealerships (Soauto SA, Loures Automóveis, Rolporto and Rolvia) in the 1 st Quarter 2016 was 1,099 units, an 8.4% increase when compared to the same period in the previous year. In the Used car business, volume at the Soauto Dealerships was 450 units, a 6.8% decrease when compared with the 483 units in the same period the year before. EBITDA for the Automotive Retail area increased around 66% when compared with the amount recorded during the 1st Quarter 2015, and the area s net contribution to the consolidated result was over seven times the amount recorded during the same period the year before. 2. ECONOMIC AND FINANCIAL RESULTS Consolidated Turnover for the 1 st Quarter 2016 was Eur 155.3 million, a 1.3% increase when compared to Eur 153.3 million in the same period the year before. Increase in Turnover does not reflect the above mentioned volume increase due to the weight of the Rent-a-Car segment, whose volumes are not included in the turnover figures, due to SIVA s undertakings in respect of the repurchase of vehicles invoiced to the Rent-a-Car Customers 2
Consolidated Actual Margin increased 6.1% when compared to the 1 st Quarter 2015, and represented 10.6% of the Consolidated Turnover (10.2% in the same period in 2015) due to the impact of increased profitable volumes, supported in a larger proportion by the Dealer Networks. Consolidated EBITDA for the 1 st Quarter 2016 (Eur 5.4 million) increased 26.3% when compared to the Eur 4.3 million recorded in the 1 st Quarter 2015. Earnings Before Interest and Taxes (EBIT) was Eur 4.9 million, an increase of 34.7% when compared to approximately Eur 3.6 million in the 1st Quarter 2015. Consolidated interest expenses recorded a significant decrease of approximately Eur 2.3 million when compared to the 1st Quarter 2015. This reduction, that resulted in EBITDA representing approximately 1.5x the amount of interest expenses, was the result of the significant debt reduction, which was included in SAG Gest s capitalization operation that was implemented in December 2015. Following the removal of the main cause for losses that SAG Gest was suffering, Net Profit attributable to SAG Gest was again positive in the 1 st Quarter 2016 by approximately Eur 0.2 million. Consolidated Equity which, following the capitalization operation completed in 2015 were no longer exposed to exchange rate risks (as a result of SAG Gest s investment in Unidas), increased against the amount as at 31 December 2015 by the amount of profits recorded in the 1 st Quarter 2016, and are Eur 22.4 million as at 31 March 2016. Consolidated Net Debt as at 31 March 2016 was Eur 117.0 million, an increase of approximately Eur 5.9 million (5.3%) in comparison to Eur 111.1 million on 31 December 2015. This increase resulted from additional working capital requirements related to the increased business volume. Alfragide, 4 May 2016 José Maria Cabral Vozone Investor Relations 3
CONSOLIDATED STATEMENT OF PROFIT AND LOSS (Unaudited) Consolidated Income Statement (Amounts in Eur 000) 3 months ended 31 March 2016 2015 % Chg Sales 152,498 150,854 1.1% Services Rendered 2,800 2,452 14.2% Turnover 155,299 153,306 1.3% Effective Margin 16,535 15,580 6.1% % of Turnover 10.6% 10.2% Outside Services & Supplies - Commercial Expenses (2,371) (2,861) -17.1% Outside Services & Supplies - Car Expenses (450) (419) 7.3% Sub Total Variable Expenses (2,821) (3,280) -14.0% Outside Services & Supplies - Non Variable Expenses (3,181) (2,873) 10.7% Payroll Expenses (5,110) (5,132) -0.4% Sub Total Overheads (8,291) (8,005) 3.6% Operating Expenses (11,112) (11,285) -1.5% EBITDA 5,423 4,295 26.3% % of Turnover 3.5% 2.8% Depreciation and Amortization (415) (435) -4.6% Gains / (Losses) on Sale of Assets 3 4-37.0% Provisions 2 (117) -101.6% Impairment (Losses) / Gains (102) (102) 0.0% EBIT 4,911 3,646 34.7% % of Turnover 3.2% 2.4% Income from Associated Companies - Equity Method (0) 1-107.4% Net Interest (1,795) (4,083) -56.0% Other Financial Expenses (1,845) (1,893) -2.6% Net Financial Income / (Expenses) (3,639) (5,976) -39.1% EBT 1,272 (2,330) 154.6% % of Turnover 0.8% -1.5% Income Taxes (994) (739) 34.6% Net Profit from Ordinary Activities 278 (3,068) 109.0% Net Profit from Discontinued Operations - Unidas 0 919-100.0% Sub-Total Discontinued Operations 0 919-100.0% Net Profit 278 (2,150) 112.9% Non-Controlling Interests (60) (52) 15.3% Net Profit Attributable to SAG Gest 218 (2,202) 109.9% % of Turnover 0.1% -1.4% 4
CONSOLIDATED STATEMENT OF THE FINANCIAL POSITION (Unaudited) Consolidated Statement of the Financial Position (Amounts in Eur 000) Mar-16 Dec-15 Fixed Assets - Net 77,572 77,621 Investments in Associates - Equity Method Consolidation 21 21 Accounts Receivable - Related Parties 132,332 131,647 Deferred Tax Assets 6,728 6,761 Non-Current Assets 216,653 216,050 Inventories 207,317 190,613 Accounts Receivable 81,021 76,828 Current Income Tax Receivable 6,532 6,405 Taxes Receivable - Other Than Income Taxes 4,426 5,439 Cash & Marketable Securities 29,630 18,116 Current Assets 328,926 297,401 Non-Current Assets Held For Sale 0 0 TOTAL ASSETS 545,579 513,451 Registered Share Capital, Equity Reserves, Non-Controlling Interests 48,629 48,570 Employee Stock Option Plan (Unidas) 0 0 Supplementary Capital Payments 135,172 135,172 Cummulative Translation Adjustments 0 0 Cummulative Translation Adjustment - Goodwill 0 0 Retained Earnings (161,645) (86,748) Current Period Profit / (Loss) 218 (74,897) TOTAL SHAREHOLDERS EQUITY 22,375 22,097 Bank Debt - Medium and Long Term 99,406 100,247 Deferred Tax Liabilities 2,399 2,173 Provisions 319 398 Non-Current Liabilities 102,124 102,818 Bank Debt - Short Term 47,268 28,992 Accounts Payable 332,659 326,205 Current Income Tax Payable 1,344 535 Taxes Payable - Other Than Income Tax 39,810 32,803 Current Liabilities 421,081 388,535 TOTAL LIABILITIES 523,205 491,354 TOTAL LIABILITIES & SHAREHOLDERS EQUITY 545,579 513,451 5