Novabase SGPS

Earnings Release • Nov 5, 2015

Consolidated Results 9M15

Privileged Information November 5, 2015

Highlights:

Turnover: 169.3 M€ (158.6 M€ in 9M14)

EBITDA: 10.5 M€ (9.9 M€ in 9M14)

Net Profit: 4.4 M€ (2.0 M€ in 9M14)

Net Cash: 2.2 M€ (6.9 M€ in 12M14)

Message from the Chairman and CEO Luís Salvado

"The success of Novabase's internationalization strategy is confirmed by these results, in line with our goals for this year.

International business grew 25% and now accounts for 45% of total activity. In Europe, operations increased 55% representing half of the international activity. The services rose 12%, driven by a strong growth in Business Solutions outside Portugal.

EBITDA and Net Profit also showed a positive trend, despite the very challenging environment in the domestic market and the significant international expansion costs. These effects caused a greater pressure in the profitability of Business Solutions. Our cash position deteriorated 5 M€ since the beginning of the year.

Regardless of the adverse and particularly demanding conditions of some markets we operate in, including our domestic market, we are committed towards the accomplishment of our 2015 Guidance. In 2016, internationalization will continue to be our top priority adjusting our targets and resources to the potential and specific circumstances of each market."

INVESTOR RELATIONS OFFICE: María Gil Marín Tel. +351 213 836 300 Fax: +351 213 836 301 investor.relations@novabase.pt

Report available on website : www.novabase.pt

Novabase SGPS, S.A. Public Company . Euronext code: NBA.AM . Registered in TRO of Lisbon and Corporate Tax Payer nº 502.280.182 . Share Capital: 15,700,697.00 € . Head Office: Av. D. João II, 34, 1998-031 Lisbon - PORTUGAL

1. Key Indicators Evolution

Turnover (M€)

EBITDA (M€)

EBITDA presents a 6% growth YoY and at the lower end of the range of the annual Guidance.

Earnings per share (EPS) in 9M15 reached 0.14 euros per share, registering an increase of 114% towards the EPS from the previous year of 0.07 euros per share.

Profitability improved as a result of the measures adopted in the end of 2014.

From EBITDA to Net Profit 9M15 Vs 9M14 (M€)

The Financial Results were negative in 0.4 M€, an increase of 1.5 M€, fundamentally based on the foreign exchange differences recorded compared to the same period of last year.

Results from discontinued operations are null in 9M15, compared to 0.2 M€ in 9M14. Note that, that gain reflected the completion of the closure process of the 'Mobility Solutions' area with a value lower than the one provisioned.

Non-controlling interests in 9M15 amounted to 0.4 M€, which compares to -0.9 M€ in 9M14. This variation is mainly due to evolution of the results of international subsidiaries.

Net cash

Novabase ended the 9M15 with 2.2 M€ in net cash, which compares to 6.9 M€ in the 12M14. However, considering the last 12 months, we observed a positive trend, with a generation of 3.0 M€.

On May 29, 2015, Novabase paid its shareholders a total amount of 0.9 M€ (0.03€/share). Additionally, on May 21, 2015, occurred the payment of 0.4 M€ to Non-controlling interests.

Cash use of 4.7 M€ in 9M15 includes the payment of dividends to Shareholders and Noncontrolling interests.

O r Clear progress in terms of international expansion and differentiation of the offerings.

Europe was the continent with greater expression in 9M15, representing half of international business.

New partnerships fall under Novabase's international expansion strategy.

2. Short Summary of the Activity

The first nine months of 2015 were marked by a significant increase in international activity, in line with the goals set for the year, and by the growth in services, which now accounts for approximately 3/4 of the total business.

Overall, compared to the same period of last year, Turnover increased by 7%, due to the significant 25% growth in the international business, which now accounts for 45% of the total business (in line with the annual goal of 40-45%). The services continued to rise and its weight is 72% of the total activity. Operationally, it was also registered an improvement, with EBITDA increasing by 6%, reflecting the measures implemented in late 2014 (restructuring aiming to improve competitiveness in the domestic operations and freeing resources to the effort of internationalization).

Given the Guidance, the results of the nine months of 2015 were in line on Turnover, and at the lower end of the EBITDA range.

To highlight that Novabase won several managed services contracts for the European Commission. These contracts, led by Novabase, are included in the framework agreement signed in consortium with another European company.

With regard to new partnerships, Novabase IMS is since the beginning of 2015, Gold partner of EMC, the Storage and Backup market leader in Portugal. In the second quarter, Novabase and OutSystems signed a strategic partnership to offer new joint products and services in the markets where they do business. Likewise, Novabase and SAP strengthened their partnership, to resell SAP products and solutions in Africa. Note that Novabase has been a recognized SAP partner for more than 15 years, and received certification as a SAP Channel Partner in 2013.

In the Venture Capital area, the Venture Capital Fund Novabase Capital Inovação e Internacionalização sold part of its investment in the company Feedzai, in a round of a venture capital investment, led by Oak HC/FT, a leading world venture capital firm in the area of fintech. Feedzai works in the area of data science and is one of the references of innovation in Novabase Capital' portfolio.

Also worthy of note, is the distinction of Novabase with the 2014 Innovation Partner award from IBM, at the National Business Partners' Conference, which acknowledges the work being done by our Financial Services area. Additionally, Novabase IMS has been recognized by Microsoft as Gold Partner, with the Cloud Productivity competency. The subsidiary Collab won the award for "Best Global Customer Satisfaction" Technology company in 2015, at the Portuguese Association of Contact Centers event. On the other hand, Novabase Mozambique has been named Microsoft's "Communications Partner of the Year" for the WECA (West, East and Central Africa) region.

Novabase's focus in innovation materialized in world reference events.

Additionally, Novabase launched MyWizzio in New York, at Finovate Fall 2015. Finovate conferences showcase the latest and the greatest in global fintech and perform high quality networking, gathering over 1000 fintech innovators and financial institutions from all over the world.

Finally, highlight that Novabase was honoured with an "Excellence at Work" award, in the category "large companies" with more than 1000 employees, which distinguish best practices in managing people at companies, by surveying employees.

The percentage breakdown of Turnover and EBITDA by the different businesses, in the 9M15, is as follows:

The services rendered increased by 12% in 9M15, in line with Novabase strategy to increase the added value of its offerings.

From the total Turnover, 75.7 M€ were generated outside Portugal, which compares to 60.5 M€ registered in 9M14.

Business outside Portugal generated in the Business Solutions area increased to 53% of the respective Turnover (40% in 9M14). In the IMS business area, the international business in 9M15 remained at 35% and in the Venture Capital area decreased to 62% (66% in 9M14).

Novabase had on average, in the 9M15, 2384 employees, which represents an increase of 3% compared to the 9M14 (2306).

Employee breakdown by business area, in 9M15, is as follows:

Average Number of Employees

Average number of employees increased due to international expansion and services growth. Worthy of note is the recruitment of 109 new university graduates through Novabase Academy program.

Average Number of Employees

by geography 9M14

Portugal 2118 Abroad 188

Average Number of Employees by geography 9M15

2.1. Business Solutions

Turnover Business Solutions (M€)

EBITDA Business Solutions (M€)

Despite the significant international growth (+54%), BS evolution reflects the costs associated to the international expansion strategy.

2.2. Infrastructures & Managed Services

IMS evolution reflects a change in the mix products / services, with services representing over 40% of the total.

EBITDA IMS (M€)

2.3. Venture Capital

3. Stock Performance

Novabase share price in 9M15 lost 3%, comparing to a 5% gain in the PSI20 Index and a 0.3% gain in the EuroStoxx Technology Index.

In this period, a dividend of 0.03€/share was distributed.

Also to be noted that, on May 2015, Novabase was chosen to be part of Tech 40, Euronext's international technology index whose purpose is to distinguish innovative listed European companies.

Novabase and the Market

Excluding the shareholder remuneration, Novabase share price would have registered a depreciation of 1.6%.

The evolution of Novabase share prices compared to other companies in the IT sector in Europe, in 9M15, was as follows:

Novabase and other TMT

Average upside of 54%, according to the analysts who cover Novabase.

The average price target disclosed by the analysts who cover Novabase is 3.32 euros.

Rotation in 9M15 represented 15% of the capital and 4.8 million shares were traded, similar to the values in 9M14 (rotation of 15% of the capital and 4.6 million shares traded).

Summary	3Q15	2Q15	1Q15	4Q14	3Q14
Minimum price (€)	2.100	2.310	2.170	2.090	2.421
Maximum price (€)	2.535	2.619	2.580	2.530	3.520
Volume weighted average price (€)	2.329	2.414	2.337	2.165	3.089
Closing price at the end of the Quarter (€)	2.148	2.500	2.360	2.214	2.421
Nr. of shares traded	573,164		2,848,400 1,344,259 1,324,176 1,417,140
Market cap in the last day (M€)	67.5	78.5	74.1	69.5	76.0

4. Outlook 2015

The results of the nine months reflect the success of Novabase' strategic options in internationalization and differentiation of its offerings. Turnover increased, strongly driven by the international business, which now accounts for 45% of total business. Likewise, the weight of services increased to 72%. EBITDA grew by 6%, as a result of the measures implemented in the end of 2014 for the improvement of operating competitiveness.

For the last quarter, we reaffirm the continuity of the strategic focus on international growth. Despite the uncertainty in some of the markets where we operate and the very challenging conditions in the domestic market, we are committed to compliance with the guidance for the FY15.

Consolidated Statement of Financial Position Consolidated Income Statement

as at 30 September 2015 for the period of 9 months ended 30 September 2015

	30.09.15	31.12.14		30.09.15	30.09.14	Var. %
	(Thousands of Euros)			(Thousands of Euros)
Assets			CONTINUING OPERATIONS
Tangible assets	5,466	5,570	Sale of goods	46,607	49,576
Intangible assets	28,901	30,663	Cost of goods sold	(41,148)	(44,862)
Financial investments	3,351	2,415
Held-to-maturity investments	3,004	-	Gross margin	5,459	4,714	15.8 %
Deferred income tax assets	15,363	17,228
Other non-current assets	8,410	7,770	Other income
			Services rendered	122,646	109,073
Total Non-Current Assets	64,495	63,646	Supplementary income and subsidies	450	228
			Other operating income	1,209	1,372
Inventories	8,177	4,943
Trade debtors and accrued income	109,559	103,821		124,305	110,673
Other debtors and prepaid expenses	15,305	17,242
Derivative financial instruments	61	88		129,764	115,387
Held-to-maturity investments	1,003	-
Cash and cash equivalents	17,934	20,714	Other expenses
			External supplies and services	(50,831)	(41,483)
Total Current Assets	152,039	146,808	Employee benefit expense	(67,582)	(65,185)
			Provisions reversal	517	2,766
Total Assets	216,534	210,454	Other operating expenses	(1,407)	(1,633)
Shareholders' Equity				(119,303)	(105,535)
Share capital	15,701	15,701
Treasury shares	(6)	(29)	Gross Net Profit (EBITDA)	10,461	9,852	6.2 %
Share premium	43,560	43,560	Depreciation and amortization	(3,905)	(4,405)
Reserves and retained earnings	21,802	24,493
Net profit	4,417	3,112	Operating Profit (EBIT)	6,556	5,447	20.4 %
			Financial results	(392)	(1,857)
Total Shareholders' Equity	85,474	86,837
			Net Profit before taxes (EBT)	6,164	3,590	71.7 %
Non-controlling interests	9,231	12,431	Income tax expense	(2,114)	(831)
			Net Profit from continuing operations	4,050	2,759	46.8 %
Total Equity	94,705	99,268
			DISCONTINUED OPERATIONS
Liabilities			Net Profit from discont. operations	-	219	-100.0 %
Bank borrowings	11,905	8,376
Finance lease liabilities	1,519	1,613	Non-controlling interests	367	(931)
Provisions	1,950	3,638
Other non-current liabilities	64	70	Attributable Net Profit	4,417	2,047	115.8 %
Total Non-Current Liabilities	15,438	13,697
Bank borrowings	7,882	5,561
Trade payables	26,962	21,849
Other creditors and accruals	40,302	39,092
Derivative financial instruments	91	1,323
Deferred income	31,154	29,664

Other information:

Total Current Liabilities	106,391	97,489
			Other information:
Total Liabilities	121,829	111,186	Turnover	169,253	158,649
			Gross margin from sales %	11.7 %	9.5 %
Total Equity and Liabilities	216,534	210,454	EBITDA margin	6.2 %	6.2 %
			EBT % on Turnover	3.6 %	2.3 %
Net Cash	2,180	6,903	Net profit % on Turnover	2.6 %	1.3 %

Total Liabilities	121,829	111,186	Turnover	169,253	158,649	6.7 %
			Gross margin from sales %	11.7 %	9.5 %
Total Equity and Liabilities	216,534	210,454	EBITDA margin	6.2 %	6.2 %
			EBT % on Turnover	3.6 %	2.3 %
Net Cash	2,180	6,903	Net profit % on Turnover	2.6 %	1.3 %

Novabase S.G.P.S., S.A. Public Company - Stock Code BVL: NBA.IN Share Capital 15,700,697.00 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

(Thousands of Euros)

	Business Solutions	IMS	Venture Capital	NOVABASE
Sale of goods	243	46,364	-	46,607
Cost of goods sold	(122)	(41,026)	-	(41,148)
Gross margin	121	5,338	-	5,459
Other income	-	-	-	-
Services rendered	87,205	32,345	3,096	122,646
Supplementary income and subsidies	358	80	12	450
Other operating income	1,097	112	-	1,209
	88,660	32,537	3,108	124,305
	- 88,781	- 37,875	- 3,108	- 129,764
Other expenses	-	-	-	-
External supplies and services	(30,501)	(18,799)	(1,531)	(50,831)
Employee benefit expense	(52,368)	(13,556)	(1,658)	(67,582)
(Provisions) / Provisions reversal	349	185	(17)	517
Other operating expenses	(879)	(503)	(25)	(1,407)
	- (83,399)	- (32,673)	- (3,231)	- (119,303)
Gross Net Profit (EBITDA)	- 5,382	- 5,202	- (123)	- 10,461
Depreciation and amortization	- (2,683)	- (1,008)	- (214)	- (3,905)
Operating Profit (EBIT)	2,699	4,194	(337)	6,556
Financial results	- 363	- (945)	- 190	- (392)
Net Profit / (Loss) before Taxes (EBT)	3,062	3,249	(147)	6,164
Income tax expense Non-controlling interests	- (1,122) 123	- (624) 223	- (368) 21	- (2,114) 367
Attributable Net Profit / (Loss)	2,063	2,848	(494)	4,417

Other information :

Turnover	87,448	78,709	3,096	169,253
EBITDA	5,382	5,202	(123)	10,461
EBITDA % on Turnover	6.2%	6.6%	-4.0%	6.2%
EBT % on Turnover	3.5%	4.1%	-4.7%	3.6%