Novabase SGPS

Earnings Release • Jul 30, 2015

Consolidated Results 6M15

Privileged Information July 30, 2015

Highlights:

Turnover: 112.9 M€ (105.9 M€ in 6M14)

EBITDA: 7.7 M€ (6.4 M€ in 6M14)

Net Profit: 3.5 M€ (1.9 M€ in 6M14)

Net Cash: 6.4 M€ (6.9 M€ in 12M14)

Message from the Chairman and CEO Luís Salvado

"The results of the first half are in line with the goals set for 2015 and, once again, confirm the success of the international expansion. All key performance indicators showed good evolutions.

International operations increased by 30%, strongly driven by the growth in Europe, which has consolidated its leading position as the main destination of the non-domestic activity.

The services expanded 25%, accounting for almost 80% of the total Turnover. The Infrastructures & Managed Services business is now mostly services, reaching a positioning that we pursued for a long time.

In profitability indicators, we recorded a 20% increase in EBITDA and a 78% growth in Net profit, due to the measures implemented for the improvement of operating competitiveness in late 2014.

We intensified the internationalization efforts, through investments in the differentiation of our offerings and in new capacity initiatives of our talent, to whom I make a special acknowledgment. Novabase' employees, with their great commitment, motivation and skills, are the main responsible for these results.

We maintain our confidence in the compliance with the Guidance for 2015, despite the uncertainty prevailing in some of the markets where we operate and the particularly challenging context of the current economic condition."

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

EBITDA within the range of the annual Guidance, and registering a 20% growth, YoY.

Earnings per share (EPS) in 6M15 reached 0.11 euros per share, registering an increase of 76% towards the EPS from the previous year of 0.06 euros per share.

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

From EBITDA to Net Profit 6M15 Vs 6M14 (M€)

The Amortizations and the Financial Results registered an increase of 0.4 M€.

Results from discontinued operations are null in 6M15, compared to 0.2 M€ in 6M14. 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 6M15 amounted to 0.04 M€, which compares to -0.6 M€ in 6M14. This variation is mainly due to evolution of the results of international subsidiaries.

Net cash

Novabase ended the 6M15 with 6.4 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 1.5 M€.

On May 29, 2015, Novabase paid its shareholders a total amount of 0.9 M€ (0.03€/share). Additionally, this quarter, occurred the payment of 0.4 M€ to Noncontrolling interests.

Cash use of 0.5 M€ in 6M15 includes the payment of dividends to Shareholders and Noncontrolling interests.

O p These good results reflect the focus in international expansion and differentiation of the offerings.

Europe was the continent with greater expression in 6M15, representing more than half of international business.

New partnerships falls under Novabase's international expansion strategy.

2. Short Summary of the Activity

The first half of 2015 was marked by a significant increase in international activity, in line with the expectations set for the year, and by an expressive growth in services, which now accounts for approximately 4/5 of the total business.

Overall, compared to the same period of last year, Turnover increased by 7%, due to the significant 30% growth in the international business, which now accounts for 44% of the total business (in line with the annual goal of 40-45%). The services continued to rise and its weight is 79% of the total activity. It was also registered an operational improvement, with EBITDA increasing by 20%, which already reflects 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 first six months of 2015 were in line on Turnover, and within the range of the EBITDA (-1% in value and -0.1 percentage points, comparing to the middle of the range).

To highlight, in this period, that Novabase won several managed services contracts for EPO - European Patent Office. 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. Also, Novabase Angola became Silver partner of EMC. 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. On the other hand, the subsidiary Collab won the award for "Best Global Customer Satisfaction" technology company in 2015, at the Portuguese Association of Contact Centers event.

Finally, highlight that Novabase was honoured with an "Excellence at Work" award, in the category "large companies" with more than 1,000 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 6M15, is as follows:

The services rendered increased by 25% in 6M15, in line with Novabase strategy to increase the added value of its offerings.

From the total Turnover, 50.1 M€ were generated outside Portugal, which compares to 38.4 M€ registered in 6M14.

Business outside Portugal generated in the Business Solutions area increased to 54% of the respective invoicing (38% in 6M14). In the IMS business area, the international business in 6M15 decreased to 33% (34% in 6M14) and in the Venture Capital area increased to 61% (55% in 6M14).

Novabase had on average, in the 6M15, 2390 employees, which represents an increase of 4% compared to the 6M14 (2293).

Employee breakdown by business area, in 6M15, 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 102 new university graduates through Novabase Academy program.

Average Number of Employees

by geography 6M14

Portugal 2109 Abroad 184

Average Number of Employees by geography 6M15

2.1. Business Solutions

Turnover Business Solutions (M€)

EBITDA Business Solutions (M€)

2.2. Infrastructures & Managed Services

IMS evolution reflects a change in the mix products / services, with a strong growth in services (46%). This area should be analysed for longer

time periods.

EBITDA IMS (M€)

2.3. Venture Capital

3. Stock Performance

Novabase share price in 6M15 gained 13%, comparing to a 16% gain in the PSI20 Index and a 9% 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 the recently-created Tech 40, Euronext's new international technology index whose purpose is to distinguish innovative listed European companies.

Novabase and the Market

The evolution of Novabase share prices compared to other companies in the IT sector in Europe, in 6M15, was as follows:

-7%

0%

40%

In the end of the second quarter of 2015, Novabase presented a Price to Sales multiple of 0.43x and a Price to Earnings multiple of 24.36x, which represents a discount of 54% and 34%, respectively, compared to the average of other companies in the sector in Europe (source: Reuters, ttm values at 30/06).

Average upside of 28%, according to the analysts who cover Novabase.

The average price target disclosed by the analysts who cover Novabase is 3.20 euros.

Indra Cap Gemini Atos Origin Novabase Alten Tietoenator

27/05/15: ex-shareholder remuneration 0.03 €/share

J F M A M J

Rotation in 6M15 represented 13% of the capital and 4.2 million shares were traded, similar to the values in 6M14 (rotation of 10% of the capital and 3.2 million shares traded).

Summary	2Q15	1Q15	4Q14	3Q14	2Q14
Minimum price (€)	2.310	2.170	2.090	2.421	3.551
Maximum price (€)	2.619	2.580	2.530	3.520	4.100
Volume weighted average price (€)	2.414	2.337	2.165	3.089	3.892
Closing price at the end of the Quarter (€)	2.500	2.360	2.214	2.421	3.580
Nr. of shares traded		2,848,400 1,344,259 1,324,176 1,417,140 1,283,056
Market cap in the last day (M€)	78.5	74.1	69.5	76.0	112.4

4. Outlook 2015

This half-year results 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 44% of total business. Likewise, the weight of services increased to 79%. EBITDA grew by 20%, as a result of the measures implemented in the end of 2014 for the improvement of operating competitiveness and already considering the international expansion effort.

Novabase maintain its confidence in the goals set for 2015, despite the uncertainty in some of the markets where it operates, reaffirming as priority the international expansion.

Consolidated Statement of Financial Position Consolidated Income Statement as at 30 June 2015 for the period of 6 months ended 30 June 2015

	30.06.15	31.12.14		30.06.15	30.06.14	Var. %
		(Thousands of Euros)			(Thousands of Euros)
Assets			CONTINUING OPERATIONS
Tangible assets	5,571	5,570	Sale of goods	23,444	34,598
Intangible assets	29,613	30,663	Cost of goods sold	(20,884)	(30,568)
Financial investments	3,400	2,415
Held-to-maturity investments	4,409	-	Gross margin	2,560	4,030	-36.5 %
Deferred income tax assets	16,157	17,228
Other non-current assets	7,410	7,770	Other income
			Services rendered	89,471	71,311
Total Non-Current Assets	66,560	63,646	Supplementary income and subsidies	277	119
			Other operating income	667	944
Inventories	4,910	4,943
Trade debtors and accrued income	98,579	103,821		90,415	72,374
Other debtors and prepaid expenses	16,444	17,242
Derivative financial instruments	162	88		92,975	76,404
Cash and cash equivalents	19,588	20,714
			Other expenses
Total Current Assets	139,683	146,808	External supplies and services	(39,064)	(26,976)
			Employee benefit expense	(46,526)	(44,178)
Total Assets	206,243	210,454	Provisions reversal	796	2,470
			Other operating expenses	(491)	(1,307)
Shareholders' Equity
Share capital	15,701	15,701		(85,285)	(69,991)
Treasury shares	(6)	(29)
Share premium	43,560	43,560	Gross Net Profit (EBITDA)	7,690	6,413	19.9 %
Reserves and retained earnings	22,995	24,493	Depreciation and amortization	(2,654)	(2,937)
Net profit	3,462	3,112
			Operating Profit (EBIT)	5,036	3,476	44.9 %
Total Shareholders' Equity	85,712	86,837	Financial results	(351)	(460)
Non-controlling interests	10,603	12,431	Net Profit before taxes (EBT)	4,685	3,016	55.3 %
			Income tax expense	(1,266)	(697)
Total Equity	96,315	99,268	Net Profit from continuing operations	3,419	2,319	47.4 %
Liabilities			DISCONTINUED OPERATIONS
Bank borrowings	12,790	8,376	Net Profit from discont. operations	-	219	-100.0 %
Finance lease liabilities	1,500	1,613
Provisions	1,871	3,638	Non-controlling interests	43	(589)
Other non-current liabilities	70	70
			Attributable Net Profit	3,462	1,949	77.6 %

	30.06.15	31.12.14		30.06.15	30.06.14
	(Thousands of Euros)				(Thousands of Euros)
Assets			CONTINUING OPERATIONS
Tangible assets	5,571	5,570	Sale of goods	23,444	34,598
Intangible assets	29,613	30,663	Cost of goods sold	(20,884)	(30,568)
Financial investments	3,400	2,415
Held-to-maturity investments	4,409	-	Gross margin	2,560	4,030
Deferred income tax assets	16,157	17,228
Other non-current assets	7,410	7,770	Other income
			Services rendered	89,471	71,311
Total Non-Current Assets	66,560	63,646	Supplementary income and subsidies	277	119
			Other operating income	667	944
Inventories	4,910	4,943
Trade debtors and accrued income	98,579	103,821		90,415	72,374
Other debtors and prepaid expenses	16,444	17,242
Derivative financial instruments	162	88		92,975	76,404
Cash and cash equivalents	19,588	20,714
			Other expenses
Total Current Assets	139,683	146,808	External supplies and services	(39,064)	(26,976)
			Employee benefit expense	(46,526)	(44,178)
Total Assets	206,243	210,454	Provisions reversal	796	2,470
			Other operating expenses	(491)	(1,307)
Shareholders' Equity
Share capital	15,701	15,701		(85,285)	(69,991)
Treasury shares	(6)	(29)
Share premium	43,560	43,560	Gross Net Profit (EBITDA)	7,690	6,413
Reserves and retained earnings	22,995	24,493	Depreciation and amortization	(2,654)	(2,937)
Net profit	3,462	3,112
			Operating Profit (EBIT)	5,036	3,476
Total Shareholders' Equity	85,712	86,837	Financial results	(351)	(460)
Non-controlling interests	10,603	12,431	Net Profit before taxes (EBT)	4,685	3,016
			Income tax expense	(1,266)	(697)
Total Equity	96,315	99,268	Net Profit from continuing operations	3,419	2,319
Liabilities			DISCONTINUED OPERATIONS
Bank borrowings	12,790	8,376	Net Profit from discont. operations	-	219
Finance lease liabilities	1,500	1,613
Provisions	1,871	3,638	Non-controlling interests	43	(589)
Other non-current liabilities	70	70
			Attributable Net Profit	3,462	1,949
Total Non-Current Liabilities	16,231	13,697
Bank borrowings	4,883	5,561
Trade payables	14,170	21,849
Other creditors and accruals	43,696	39,092
Derivative financial instruments	915	1,323
Deferred income	30,033	29,664

Other information:

Total Current Liabilities	93,697	97,489
			Other information:
Total Liabilities	109,928	111,186	Turnover	112,915	105,909
			Gross margin from sales %	10.9 %	11.6 %
Total Equity and Liabilities	206,243	210,454	EBITDA margin	6.8 %	6.1 %
			EBT % on Turnover	4.1 %	2.8 %
Net Cash	6,354	6,903	Net profit % on Turnover	3.1 %	1.8 %

Total Liabilities	109,928	111,186	Turnover	112,915	105,909	6.6 %
			Gross margin from sales %	10.9 %	11.6 %
Total Equity and Liabilities	206,243	210,454	EBITDA margin	6.8 %	6.1 %
			EBT % on Turnover	4.1 %	2.8 %
Net Cash	6,354	6,903	Net profit % on Turnover	3.1 %	1.8 %

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

Consolidated Income Statement by SEGMENTS for the period of 6 months ended 30 June 2015

(Thousands of Euros)

	Business		Venture	NOVABASE
	Solutions	IMS	Capital
Sale of goods	36	23,408	-	23,444
Cost of goods sold	(15)	(20,869)	-	(20,884)
Gross margin	21	2,539	-	2,560
Other income	-	-	-	-
Services rendered	59,501	27,862	2,108	89,471
Supplementary income and subsidies	232	33	12	277
Other operating income	582	85	-	667
	60,315	27,980	2,120	90,415
	- 60,336	- 30,519	- 2,120	- 92,975
Other expenses	-	-	-	-
External supplies and services	(19,369)	(18,625)	(1,070)	(39,064)
Employee benefit expense	(36,149)	(9,291)	(1,086)	(46,526)
Provisions reversal	480	312	4	796
Other operating expenses	(321)	(154)	(16)	(491)
	- (55,359)	- (27,758)	- (2,168)	- (85,285)
Gross Net Profit (EBITDA)	- 4,977	- 2,761	- (48)	- 7,690
Depreciation and amortization	- (1,780)	- (731)	- (143)	- (2,654)
Operating Profit (EBIT)	3,197	2,030	(191)	5,036
Financial results	- 62	- (605)	- 192	- (351)
Net Profit / (Loss) before Taxes (EBT)	3,259	1,425	1	4,685
Income tax expense	- (891)	- (346)	- (29)	- (1,266)
Non-controlling interests	(172)	315	(100)	43
Attributable Net Profit / (Loss)	2,196	1,394	(128)	3,462

Other information :

Turnover	59,537	51,270	2,108	112,915
EBITDA	4,977	2,761	(48)	7,690
EBITDA % on Turnover	8.4%	5.4%	-2.3%	6.8%
EBT % on Turnover	5.5%	2.8%	0.0%	4.1%