SAG GEST Soluções Automovel Globais : announces Consolidated Results FY 2018

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 2018

(Unaudited)

•Consolidated Turnover in 2018 decreased 13.7% to Eur 535.1 million (Eur 619.7 million in 2017).

•SIVA's total new cars volume (20,349 units) decreased 32.6% in 2018, corresponding to a market share of 8.4% in the Passenger Cars (PV) market (12.8% in 2017) and 7.6% in the Light Vehicles market (VP + Light Commercial Vehicles - VCL), which compares with the market share of 11.6% of the previous year.

•Consolidated EBITDA in a recurrent basis was negative Eur 0.7 million, significantly influenced by result of 1st quarter that was negative in Eur 3,6 millhon.

•The 1st quarter result was negative, essentially due to (i) punctual sales operations of used and self-registration cars with direct impact on the deterioration of the margins, with goal of rapid reduction on inventories of this type of cars (ii) decrease in New Car sales that was owed (a) to the reduction of volumes in the RAC channel, and (b) reduction on self-registration cars.

SAG GEST - Soluções Automóvel Globais, SGPS, SA - Sociedade Aberta

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

Office: Alfrapark - Estrada de Alfragide, nº 67, Edifício SGC - Piso 2

2614-519 Amadora

Tel: [phone]

Fax: [phone]

1

•In 2018 Eur 152 million of impairment was registered. The non-cash event had a significant impact on SAG Gest Consolidated Net Profit and Equity.

•Consolidated Net Profit and Equity was therefore negative Eur 176.9 million and Eur 169.2 million, respectively.

•Consolidated Net Debt at the end of December 2018 was Eur 129.1 million, an increase of Eur 4.0 million compared to the end of 2017.

•As a result of the negotiation process with stakeholders, including the brands represented by subsidiary SIVA, financial institutions that participate in financing and guarantees that the SAG Group has and VW Group entities, it was possible to establish an agreement that will guarantee the operations continuity.

•In the agreement between SAG Gest, Porsche Holdings and the financial institutions participating in SAG Group's financing and guarantees, the Distribution and Automotive Retail business will be sold by SAG to Porsche Holdings, this process should be end during 2019.

•This operation will enable the possibility to adjust the capital structure of the company that ensures the ability to carry out its activity on a sustainable basis.

1.OPERATIONAL PERFORMANCE 1.1 Automotive Distribution - SIVA

•The sale volume of the Brands distributed by the SIVA Subsidiary in 2018 was 20,349 vehicles (30,171 in 2017), corresponding to an 8.4% market share in the Passenger Car (PC) market (12.8% in 2017) and 7.6% in the Light Vehicle market (PC + Light Commercial Vehicles - LCV) which compares with 11.6% market share in the previous year.

•The volume of PC was 19,075 units and LCV were 1,274 units, corresponding to a share of 3.2% in the LCV market. Considering the goods and passenger versions of the VW LCV brand vehicles (Caddy, Transporter, Crafter and Amarok), the annual volume was 1,772 units, reaching a share of 4.6% in the ABC+PU market, which accounted for 38,507 vehicles (LCV excluding passenger derivatives and A0).

•This volume reduction, cutting across all Brands represented by the SIVA Subsidiary, is essentially due to three factors:

SAG GEST - Soluções Automóvel Globais, SGPS, SA - Sociedade Aberta

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

Office: Alfrapark - Estrada de Alfragide, nº 67, Edifício SGC - Piso 2

2614-519 Amadora

Tel: [phone]

Fax: [phone]

2

-Strong reduction in the volume of the Rent-a-Car business due to the reduced margin of this channel and the high risk involved (Buy Backs).

-Elimination of the self-registration volume (vehicles registered for sale in subsequent periods), due to the high level of discounts that this type of sale involves.

-Lack of stock availability of numerous models of all makes, resulting from production delays due to the new vehicle approval process (WLTP) in Europe, with significant impact on our sales from August 2018.

1.2Automotive Retail

•The number of new cars of the Volkswagen, Audi, Škoda and Volkswagen - Commercial Vehicles sold by the Soauto Concessions (Soauto SA, Loures Automóveis, Rolporto and Rolvia) in 2018 was 3,831 units, representing a decrease of 13, 4% in relation to the same period of the previous year

•Soauto's contribution to Consolidated Turnover was EUR 127.6 million, a slight decrease of 4.6% compared to EUR 133.8 million in 2017.

2.ECONOMIC AND FINANCIAL RESULTS

Explanation Note: Due to the adoption of Equity Method in the financial statements and the restructuring process that occur during 2018, which culminated in the agreement established, the 2018 Financial Statements are disclosed in way that assets involved in the transaction are classified as assets / liabilities held for sale. In accordance with the respective IFRS 5 and IAS 27 the comparative has been restated. The change resulting from restructuring implied the registration of impairments with related parties that significantly change the comparison with the 2017 financial year. We disclosed the Consolidated Statement of Income and Balance Sheet the amounts of 2018 on a comparable basis (2018 recurrent).

•The Consolidated Turnover for 2018, in comparable basis, was Eur 535.1 million, representing a reduction of around 13.7% compared to the value of 2017 (Eur 619.7 million).

•The Consolidated Contribution Margin, in comparable basis, decreased compared to 2017, corresponding to 8.6% of Consolidated Turnover (8.9% in 2017). In absolute terms, the Consolidated Contribution Margin decreased by approximately EUR 8.6 million.

•This reduction of the Consolidated Contribution Margin of 2018 results to a large extent from the result generated in one-off accelerated sales operations for the disposal of used-car stock and self- registration, which focused primarily on the first quarter of 2018.

•Consolidated EBITDA, in comparable basis, was negative Eur 0.7 million, with significant influence of 1st Quarter where was reported a loss of Eur 3.6 million.

•The 1st quarter result was negative, essentially due to (i) punctual sales operations of used and self- registration cars with direct impact on the deterioration of the margins, with goal of rapid reduction on

SAG GEST - Soluções Automóvel Globais, SGPS, SA - Sociedade Aberta

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

Office: Alfrapark - Estrada de Alfragide, nº 67, Edifício SGC - Piso 2

2614-519 Amadora

Tel: [phone]

Fax: [phone]

3

inventories of this type of cars (ii) decrease in New Car sales that was owed (a) to the reduction of volumes in the RAC channel, and (b) reduction on self-registration cars.

•Consolidated financial cost at the end of 2018, Eur 16.3 million, slightly down of 1.3% on the figure for the same period in 2017.

•Consolidated Net Income was negative at Eur 177.0 million. In a comparable basis loss Eur 19.1 million (Eur - 13.8 million in the same period of 2017).

•Consolidated Net Debt at December 31, 2018 was Eur 129.1 million, an increase of approximately Eur

4.0million compared to the value of Eur 125.2 million at December 31, 2018.

3.MAIN PERSPECTIVES

•As disclosed in the Financial Statements for the year ended December 31, 2017, although the restructuring process concluded by SAG Gest in December 2015 with banks allowed it to rebalance of consolidated financial structure and created conditions to continuity of Sag Gest and its subsidiaries (together the "SAG Group") operations, at the end of 2017, with the deterioration of the business conditions, the SAG Group's financial situation deteriorated, thus worsening the liquidity risk of Group and its operational and financial profitability.

•As a result of the aforementioned events, in the beginning of 2018, and in order to allow the SAG Group to continue operating, SAG Gest's Board of Directors began to develop, together with the Brands represented by the subsidiary SIVA, a repositioning of its business in order to reverse the situation and guarantee the sustainability of the entire Group and consequently its access to the sources of financing necessary for its activity, so that the 2017 Financial Statements of SAG Gest and its subsidiaries were prepared on the basis of the principle of continuity of operations, as it was the Board's belief that the negotiations would be successfully concluded.

•In addition, and in response to the Group's situation, management has been conducting a daily base management of operational activity, focused on cash flows, and has adjusted purchasing plans with VW Group, reducing the volume of orders and requested the reduction of the timing of the commercial support of the Brands.

•Despite the complexity of the negotiation process with the various stakeholders, including the brands represented by SIVA, the Financial Institutions participating in the financing and guarantees that the SAG Group has and the entities of the VW Group, it was possible to establish agreements that guarantee continuity of operations.

•In the agreement between SAG Gest, Porsche Holdings (Company belonging to the VW Group) and the Financial Institutions participating in SAG Group's financing and guarantees, SIVA will be wholly owned by Porsche Holdings, this process should be end during 2019.

•This operation will enable the possibility to adjust the capital structure of the company that ensures the ability to carry out its activity on a sustainable basis

Alfragide, 30 de Abril de 2019

João Pedro Saraiva

SAG GEST - Soluções Automóvel Globais, SGPS, SA - Sociedade Aberta

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

Office: Alfrapark - Estrada de Alfragide, nº 67, Edifício SGC - Piso 2

2614-519 Amadora

Tel: [phone]

Fax: [phone]

4

Representative for Market Relations

SAG GEST - Soluções Automóvel Globais, SGPS, SA - Sociedade Aberta

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

Office: Alfrapark - Estrada de Alfragide, nº 67, Edifício SGC - Piso 2

2614-519 Amadora

Tel: [phone]

Fax: [phone]

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