Novabase SGPS

Investor Presentation • Feb 20, 2020

Relevant information Results 12M19

Lisboa,20 February 2020

Novabase – Sociedade Gestora de Participações Sociais, S.A., under the terms and for the purposes of article 17 of Regulation (EU) no. 596/2014 of the European Parliament and of the Council and article 248-A of the Portuguese Securities Code, discloses today to the market a Trading Update regarding the nine months 2019, whose essential features are included in the presentation attached.

In addition, it is further informed that a webcast on this Trading Update will be held today, at 5 pm Lisbon time (GMT). More information about registration can be found at www.novabase.pt.

Privileged Information

NEXT-GEN IT SERVICES COMPANY

FY19 Consolidated Results February 20, 2020

Disclaimer

This presentation includes sector and forward-looking statements involving uncertainties that could cause actual data to differ materially from those indicated.

• These statements relate only to this date of presentation, and Novabase assumes no obligation to update the information or to notify in the event that any question changes or is identified as incorrect, except when required by law or specific regulation.
• Thus, neither Novabase, nor any of its subsidiaries, its administrators, members of the other corporate bodies or employees, make any declaration or commitment on the accuracy or completeness of the information and do not assume, therefore, any type of obligation or responsibility.
• Financial reporting terms used in this Report are mostly in accordance with International Financial Reporting Standards (IFRS) but will include certain non-IFRS financial measures of our performance (APMs). APMs used by Novabase are intended to provide additional information, more comprehensive and relevant to users, and are applied consistently in all periods reflected in this release. Reconciliation of each of these APMs to its most directly comparable IFRS financial measure can be found at the end of this Report. All amounts in this presentation are expressed in million Euros, except otherwise stated.
• This presentation is provided for informational purposes only and does not constitute a document for the offer of securities, and its distribution or use by any person or entity is forbidden without prior authorization from Novabase.

A strategic positioning to capture the future

Propelled by great talent and technology

NEXT-GEN IT

Design & UX Insights Through Data Cloud native & scalable Digital Architecture API Exposure AI / Analytics Test Automation & Engineering Continuous Delivery Intelligent Operations

Our ambition in big numbers

Bulk of Transformation until 2021

Next-Gen

x2 Turnover 2023 vs. 2018

• Through M&A and organic growth

• 90% international business in 2023

• Long term client relationships with few large accounts

Double-digit EBITDA margin in 2023

Value Portfolio

Generate funds to support Next-Gen growth

FY19 Outlook

CEO

Message from João Nuno Bento

"I strongly believe 2019 was a remarkable year for Novabase.

A new Strategic Direction was approved, setting the conditions for the execution of a clear and compelling value creation roadmap.

The divestment of the GTE Business for 36 M€ (completed on January 9, 2020) was a key achievement, allowing Management to focus on the Next-Gen Transformation agenda.

Value Portfolio segment assets performed much above our expectations delivering 15% revenue growth on the operations side and generating a 6.7 M€ financial gain mainly due to the Feedzai valuation re-appraisal within the VC Portfolio.

Next-Gen segment results came out in line with our estimates considering the investments in Talent Engine, a reset on geographical focus and a management overhaul.

On the Financials, I would underline the following key achievements:

• Turnover increased 9% YoY;
• Next-Gen represents 68% of total Turnover;
• EBITDA reached 9.4 M€ (7.8% on revenue);
• Net Profit was 20.4 M€ (0.66 € per share);
• 9 M€+ were repatriated from Angola significantly lowering the balance sheet exposure to this geography;
• Talent Pool increased 9%, in line with Turnover;
• FY19 Total Shareholder Return was 60%;
• The cash position is now at 34.1 M€ (does not yet reflect the cash inflow related to the GTE Business disposal);
• The Board will propose a 0.85 € per share cash distribution on next GMS, which fulfills the commitment made to Shareholders to distribute 1.5 €/share in 2019-2023.

Thank You All for your support!" 7

2019 in Review

NEW STRATEGY LAUNCHED

Approved by the Board and disclosed in July 2019.

GMS held on September 26, 2019, voted for a new executive Board Member to lead Next-Gen Segment, a Stock Options plan and a Share Buy-back program, and an extraordinary remuneration of 0.5 €/share.

EURONEXT AWARD

Novabase was distinguished by the Euronext as the "SME Equity Champion" for delivering the highest TSR.

NEXT-GEN HONOURED!

The FinTech & RegTech Global Awards recognized Symetria® as the best reporting and compliance data management solution.

Celfocus awarded an honourable mention at the World Agility Forum for the consistent dedication and collaboration in implementing agile transformation initiatives.

FOCUS ON TRANSFORMATION

Next-Gen working on growth through scaling up its Talent engine & developing structures to enlarge access to international clients.

Value Portfolio generating value to fund growth in Next-Gen: recent sale of "the Government, Transport and Energy business" to VINCI Energies for a Price to Sales 2019 multiple of 1x subject to final adjustments.

HAPPY BIRTHDAY TO US!

2019 was the year we celebrated 30 years of success and transformation. The first Alumni party was held, bringing together current and former employees

Relevant Information

Sale of GTE Business

Completion of the sale of Government, Transport and Energy Business • A potential earn-out of 3 M€ may be

• As at November 4, 2019, Novabase has entered into a sale and purchase agreement with VINCI Energies Portugal, SGPS, S.A. ("VEP") to sell its "Application and Data Analytics" business for the Government, Transport and Energy ("GTE Business"), through the sale of the shares representing the entire share capital of Novabase Digital S.A. as well as the transfer of the economic value and of employees assigned to the GTE Business in other companies of the Group;

• The agreed purchase price was 33 M€, to be paid on the completion date of the transaction, subject to certain adjustments, as foreseen in the sale and purchase agreement;

• added to the agreed purchase price, depending on the final performance of the GTE Business in the financial year of 2019;

• The sale was substantially completed at the end of 2019 after verification of the relevant conditions precedent under the Agreement, and at January 9, 2020, the agreed purchase price was paid. The final price is still subject to positive and negative adjustments, resulting from the final calculation of price mechanisms clauses in the Agreement;
• As a result, Novabase recorded, with reference to December 31, 2019, the gain on the sale of GTE Business to VEP, in the amount of 12.0 M€; the gain considers the achievement of 100% of the earn-out;
• To be noted that GTE Business represented a turnover of 35 M€ in 2019 and employed around 400 employees. 9

Financial Highlights Turnover increased 9% YoY, with Next-Gen

FY19 performance: Strategy 2019+ in motion!

Turnover and EBITDA do not include the GTE Business, discontinued in 4Q19, for all periods in this presentation.

• representing 68%
• Next-Gen International Turnover was 90% on Europe & ME
• EBITDA of 9.4 M€, including the positive effect of IFRS16
• Net Profit sets a new record, reaching 20.4 M€, benefiting from the gain on sale of GTE Business
• Solid Net Cash position of 34.1 M€
• Talent pool increased 9% YoY, reaching 1838 employees
• Total Shareholder Return of 60% in FY19

Turnover

Turnover increased 9% YoY, with Next-Gen representing 68%

with the FY18 restated.

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60

80

100

120

140

11

EBITDA

EBITDA of 9.4 M€, including the positive effect of IFRS16

(1) Positive effect of IFRS16 in FY19 EBITDA of 3.0 M€.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Next-Gen Segment

Next-Gen Turnover grows 7% YoY…

… and working on strategic initiatives

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20

30

40

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60

70

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90

Next-Gen Segment

Next-Gen grows in target markets

Multi Industry approach, with FY19 still focused in Telco.

International Turnover grows 2% YoY.

62% of Next-Gen Turnover generated outside Portugal, with Europe & ME accounting for 90% of it (85% in FY18).

Exposure to geographies with greater volatility decreased by 23% YoY.

Next-Gen Segment

Building long term relationships

Large accounts registered a growth, both in number…

…and in Revenues (increasing 11% YoY).

Note: Total number of clients in FY19 was 102, same number as previous year.

(1) Top Tier clients (>1 M€) considers the Trailing 12 months.

Value Portfolio Segment

Value Portfolio Turnover grows 15% YoY

49% of Value Portfolio Turnover is generated outside Portugal.

Resilient performance

Positive performance of the IT Staffing

in Value Portfolio

Business.

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25.0

30.0

35.0

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45.0

16

Key Figures Total earnings per share reached

Net Profit sets a new record, 20.4 M€

0.66 euros (Vs. 0.15 euros in FY18).

EBITDA to Net Profit

Depreciation expense increased 87% YoY, reflecting the entry into force of IFRS16(1).

Financial results(1) increased 8.2 M€ YoY, due to the re-evaluation of an investment in the venture capital business, also responsible for the evolution of NCI (-5.6 M€ Vs. -0.3 M€ in FY18).

Discontinued Operations reached a 15.1 M€ profit (Vs. 3.3 M€ in FY18), which mainly refers to the results attributable to GTE. In FY19, also includes the gain on the sale of this business, amounting to 12.0 M€.

(1) Negative effect of IFRS16 in FY19 of 2.7 M€ in depreciation expense and 0.3 M€ in financial results. 17

Net Cash

Net Cash position of 34.1 M€

Does not yet reflect the cash inflow from GTE Business disposal.

Cash use of 0.2 M€ in 2019 excluding shareholders remuneration and the payment of dividends to NCI, and disregarding the perimeter variation:

• 20.2 M€ to Shareholders, corresponding to a regular dividend of 0.15 €/share, paid in June 2019, and an extraordinary remuneration of 0.5 €/share, paid in October 2019;
• 0.5 M€ to Non-Controlling Interests, paid in September 2019;
• 6.9 M€ of impact of exiting GTE Business.

Note: From the 34.1 M€, 13.5 M€ refers to Non-controlling Interests.

Talent

Talent Pool of 1838 employees in FY19

Average number of Employees (1)

Next-Gen Value Portfolio (2)

(1) Excluding GTE Business.

(2) Including holding / shared services representing 89 employees in FY19 (87 in FY18).

Talent pool increased 9% YoY.

Next-Gen Turnover per employee increased 6% YoY.

Attrition rate of Next-Gen was 21.1% in FY19, the same as the year before.

Stock Market

Novabase TSR of 60% in FY19

The Board will propose to the GMS to be held on May 12, a remuneration of 0.85 €/share. This distribution fulfills the commitment made to Shareholders to distribute 1.5 €/share in 2019-2023.

May 19: Shareholder remuneration 0.15 €/share -2% 44% J F M A M J J A S O N D Novabase PSI20 Eurostoxx Technology Index 0% Oct 19: Shareholder remuneration 0.50 €/share

Novabase and the Market

Novabase share price increased 28% in FY19, while PSI20 Index increased 10% and EuroStoxx Technology Index, 35%.

The average price target disclosed by the research that covers Novabase is 4.70 €, and the average upside is 82%.

In FY19, a gross dividend in the amount of 4.7 M€ (0.15 €/share) was paid to Shareholders. Additionally, it was paid an extraordinary remuneration of 15.5 M€ (0.50 €/share).

Market Capitalization at the end 2019 is 81.0 M€, implying a ttm Price to Sales of 0.52x.

Free Float Velocity in FY19 represented 27% with a free float of 40%(1).

APMs

Alternative Performance Measures

Net Cash

Net Cash provides information on the level of cash and other bank deposits and marketable securities, after discounting the debts to financial institutions, assisting in the analysis of the company's liquidity and ability to meet its non-bank commitments.

The caption "Cash and cash equivalents" is simultaneously the item of the consolidated statement of financial position more directly reconcilable and more relevant to this APM.

The detail and breakdown of Net Cash, as well as the reconciliation in FY19 and prior period, is analysed in the table on the right.

This APM and all its components contain no estimates or judgments made by Management.

	FY18	FY19
Cash and cash equivalents	63,614	48,755
Debt securities - Non-Current	7,680	403
Debt securities - Current	1,198	2,793
Treasury shares held by the Company (1)	761	972
Bank borrowings - Non-Current	(6,294) (13,600)
Bank borrowings - Current	(4,959) (5,194)
Net Cash (Euro thousands)	62,000	34,129
	FY18	FY19
Treasury shares held by the Company	376,611	376,611
Closing price @ last tradable day (€)	2.020	2.580
Treasury shares held by the Company (Euro thousands)	761	972

(1) Is determined by multiplying the number of treasury shares held by the Company at the end of the period by the share price on the last tradable day. 21

About NOVABASE

NEXT-GEN IT SERVICES COMPANY

Company Information Investors Relations Next Release

Novabase SGPS, S.A. Public Company Euronext code: PTNBA0AM0006 Registered in TRO of Lisbon and Corporate Tax Payer no. 502.280.182 Share Capital: 54,638,425.56 € Head Office: Av. D. João II, 34, 1998-031 Lisbon - PORTUGAL

María Gil Marín Chief Investors Officer Tel. +351 213 836 300 Fax: +351 213 836 301 investor.relations@novabase.pt

Report available on website: www.novabase.pt

Trading Update 3M20 Thursday, May 14, 2020 (after market closure)

Consolidated Statement of Financial Position Consolidated Income Statement as at 31 December 2019 for the year ended 31 December 2019

	31.12.19	31.12.18		31.12.19	31.12.18	Var. %
	(Thousands of Euros)			(Thousands of Euros)
ASSETS			CONTINUING OPERATIONS
Tangible assets	2,180	10,235	Sale of goods	374	-
Intangible assets	12,967	16,065	Cost of goods sold	(253)	-
Right-of-use assets	9,785	-
Financial investments	12,344	4,120	Gross margin	121	-	-
Debt securities	403	7,680
Deferred income tax assets	9,585	10,048	Other income
Other non-current assets	1,908	1,644	Services rendered	119,881	110,031
Total Non-Current Assets	49,172	49,792	Supplementary income and subsidies	232	329
Inventories	34	33	Other operating income	632	492
Trade debtors and accrued income	40,247	45,727		120,745	110,852
Other debtors and prepaid expenses	50,403	11,865
Derivative financial instruments	24	26		120,866	110,852
Debt securities	2,793	1,198
Cash and cash equivalents	48,755	63,614	Other expenses
Total Current Assets	142,256	122,463	External supplies and services	(33,353)	(32,962)
			Employee benefit expense	(76,756)	(72,018)
Assets for continuing operations	191,428	172,255	(Provisions) / Provisions reversal	(957)	1,236
			Net impairm. losses on financ. assets	253	675
Assets for discontinued operations	460	-	Other operating expenses	(694)	(1,251)
Total Assets	191,888	172,255		(111,507)	(104,320)
EQUITY			Gross Net Profit (EBITDA)	9,359	6,532	43.3 %
Share capital	54,638	15,701	Restructuring costs	-	-
Treasury shares	(655)	(188)	Operating Gross Net Profit	9,359	6,532	43.3 %
Share premium	226	43,560	Depreciation and amortisation	(4,715)	(2,517)
Reserves and retained earnings	(5,318)	3,016
Net profit	20,400	4,737	Operating Profit (EBIT)	4,644	4,015	15.7 %
Total Shareholders' Equity	69,291	66,826	Financial results	6,582	(1,581)
Non-controlling interests	18,329	13,754	Gain on net monetary position	-	308
Total Equity	87,620	80,580
			Net Profit before taxes (EBT)	11,226	2,742	309.4 %
LIABILITIES			Income tax expense	(353)	(994)
Bank borrowings	13,600	6,294	Net Profit from continuing operations	10,873	1,748	522.0 %
Finance lease liabilities	-	7,066
Lease liabilities	7,681	-	DISCONTINUED OPERATIONS
Provisions	8,623	8,252	Net Profit from discont. operations	15,103	3,266	362.4 %
Other non-current liabilities	770	990
Total Non-Current Liabilities	30,674	22,602	Non-controlling interests	(5,576)	(277)
Bank borrowings	5,194	4,959	Attributable Net Profit	20,400	4,737	330.7 %

	31.12.19	31.12.18		31.12.19	31.12.18
		(Thousands of Euros)			(Thousands of Euros)
ASSETS			CONTINUING OPERATIONS
Tangible assets	2,180	10,235	Sale of goods	374	-
Intangible assets	12,967	16,065	Cost of goods sold	(253)	-
Right-of-use assets	9,785	-
Financial investments	12,344	4,120	Gross margin	121	-
Debt securities	403	7,680
Deferred income tax assets	9,585	10,048	Other income
Other non-current assets	1,908	1,644	Services rendered	119,881	110,031
Total Non-Current Assets	49,172	49,792	Supplementary income and subsidies	232	329
			Other operating income	632	492
Inventories	34	33
Trade debtors and accrued income	40,247	45,727		120,745	110,852
Other debtors and prepaid expenses	50,403	11,865
Derivative financial instruments	24	26		120,866	110,852
Debt securities	2,793	1,198
Cash and cash equivalents	48,755	63,614	Other expenses
Total Current Assets	142,256	122,463	External supplies and services	(33,353)	(32,962)
			Employee benefit expense	(76,756)	(72,018)
Assets for continuing operations	191,428	172,255	(Provisions) / Provisions reversal	(957)	1,236
			Net impairm. losses on financ. assets	253	675
Assets for discontinued operations	460	-	Other operating expenses	(694)	(1,251)
Total Assets	191,888	172,255		(111,507)	(104,320)
EQUITY			Gross Net Profit (EBITDA)	9,359	6,532
Share capital	54,638	15,701	Restructuring costs	-	-
Treasury shares	(655)	(188)	Operating Gross Net Profit	9,359	6,532
Share premium	226	43,560	Depreciation and amortisation	(4,715)	(2,517)
Reserves and retained earnings	(5,318)	3,016
Net profit	20,400	4,737	Operating Profit (EBIT)	4,644	4,015
Total Shareholders' Equity	69,291	66,826	Financial results	6,582	(1,581)
Non-controlling interests	18,329	13,754	Gain on net monetary position	-	308
Total Equity	87,620	80,580
			Net Profit before taxes (EBT)	11,226	2,742
LIABILITIES			Income tax expense	(353)	(994)
Bank borrowings	13,600	6,294	Net Profit from continuing operations	10,873	1,748
Finance lease liabilities	-	7,066
Lease liabilities	7,681	-	DISCONTINUED OPERATIONS
Provisions	8,623	8,252	Net Profit from discont. operations	15,103	3,266
Other non-current liabilities	770	990
Total Non-Current Liabilities	30,674	22,602	Non-controlling interests	(5,576)	(277)
Bank borrowings	5,194	4,959	Attributable Net Profit	20,400	4,737
Finance lease liabilities	-	1,361
Lease liabilities	3,887	-
Trade payables	8,215	5,469
Other creditors and accruals	32,732	34,930

Derivative financial instruments	17	24
Deferred income	14,854	22,267
Total Current Liabilities	64,899	69,010
Total Liabilities for cont. operations	95,573	91,612
Total Liabilities for discont. operations	8,695	63
Total Liabilities	104,268	91,675	Other information:
			Turnover	120,255	110,031
Total Equity and Liabilities	191,888	172,255	EBITDA margin	7.8 %	5.9 %
			EBT % on Turnover	9.3 %	2.5 %
Net Cash	34,129	62,000	Net profit % on Turnover	17.0 %	4.3 %

Turnover	120,255	110,031	9.3 %
EBT % on Turnover	9.3 %	2.5 %

Novabase S.G.P.S., S.A. Public Company - Euronext code: PTNBA0AM0006 Share Capital 54,638,425.56 Euros - Corporate Registration CRCL N.º 1495 Head-office: Av. D. João II, 34, Parque das Nações, 1998-031 Lisbon, Portugal Corporate Tax Payer N.º 502 280 182

Consolidated Income Statement by SEGMENTS for the year ended 31 December 2019

(Thousands of Euros)	Value Portfolio	Next-Gen	NOVABASE
CONTINUING OPERATIONS
Sale of goods	-	374	374
Cost of goods sold	-	(253)	(253)
Gross margin	-	121	121
Other income	-	-	-
Services rendered	38,583	81,298	119,881
Supplementary income and subsidies	142	90	232
Other operating income	511	121	632
	39,236	81,509	120,745
	- 39,236	- 81,630	- 120,866
Other expenses	-	-	-
External supplies and services	(1,632)	(31,721)	(33,353)
Employee benefit expense	(33,084)	(43,672)	(76,756)
(Provisions) / Provisions reversal	804	(1,761)	(957)
Net impairm. losses on financ. assets	156	97	253
Other operating expenses	(374)	(320)	(694)
	- (34,130)	- (77,377)	- (111,507)
Gross Net Profit (EBITDA)	- 5,106	- 4,253	- 9,359
Depreciation and amortisation	- (3,041)	- (1,674)	- (4,715)
Operating Profit (EBIT)	2,065	2,579	4,644
Financial results	- 6,740	- (158)	- 6,582
Gain on net monetary position	-	-	-
Net Profit / (Loss) before Taxes (EBT)	8,805	2,421	11,226
Income tax expense	- (823)	- 470	- (353)
Net Profit / (Loss) from cont. operations	7,982	2,891	10,873

-

DISCONTINUED OPERATIONS

Net Profit from discontinued operations	15,103	-	15,103
Non-controlling interests	(3,749)	(1,827)	(5,576)
Attributable Net Profit / (Loss)	19,336 -	1,064 -	20,400 -

Other information :

Turnover	38,583	81,672	120,255
EBITDA	5,106	4,253	9,359
EBITDA % on Turnover	13.2%	5.2%	7.8%
EBT % on Turnover	22.8%	3.0%	9.3%