1 1 Agenda NOS at a Glance 3 Executing on Strategy 10 - - PowerPoint PPT Presentation

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Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

3

4 4

Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

5 5

Launch of Optimus The 3rd Mobile

• perator in the

market Spin-off of ZON, the largest Pay TV player in Portugal, (previously PT Multimedia) from Portugal Telecom Group 27 August Merger between ZON and Optimus Next generation network expansion FttH Network sharing agreement signed with Vodafone 14 May Rebranding to Premium sport Content Sharing Agreement signed with PT, Vodafone and Nowo Reduction stake in Sport TV to 25%

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Letter of Intent signed with Vodafone to negotiate mobile network sharing agreement Disposal of NOS Towering to Cellnex Disposal of NOS International Carrier Services

6 6

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€67 M

€33 M

NOS

Audiovisuais

(100%)

€69 M

€23 M NOS Cinemas

(100%)

€1,381 M

€584 M

NOS

Comunicações

(100%)

ZAP

(equity consolidation)

(30%)

€176 M

Sport TV

(equity consolidation)

(25%)

€188 M

Dreamia

(equity consolidation)

(50%)

€176 M

NOS Group € 1,458M

€ 640 M

€ M Revenues € M EBITDA

7 7

98%

NOS

Altice Vodafone Nowo

90%

NOS

Altice Vodafone Nowo

96%

NOS

Altice Vodafone Nowo

168%

NOS

Altice Vodafone Others

89%

NOS

Altice Vodafone Nowo

3,464 M€

NOS

Altice Vodafone Nowo

Source: ANACOM. Pay TV, Fixed Broadband and Fixed Voice: residential penetration

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Pay TV, Total Market 4.1M subs

[% Subs, Anacom Data 1Q20]

Fixed BB, Total Market 4.0M subs [% Subs, Anacom Data 1Q20] Multiple Play Bundles, Total Market 3.7 Subs [% Subs, 1Q20] Fixed Voice, Total Market 5.1M accesses [% Subs, Anacom Data 1Q20] Mobile, Total Market 17.3M subs [% Subs, Anacom Data 1Q20] Retail Revenues

[YtD; FY19]

8 8

European Avarage Portugal Source: Market Regulators. European average includes Sweden, Spain, UK, France and Germany. Institutional Presentation

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NOS, Convergent + Integrated Penetration

[%]

Service Penetration

[%]

Total Market Retail Revenues, YoY Change [Millions of Euros; % ]

9 9

Sources: Market Regulators; Operator Reports; FttH Council Europe. Institutional Presentation

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Homes Passed by Operator and Techonology FttH Availability

[%, 2019]

Capex as % of Revenues

[ % ]

10

11 11

Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

12 12

NOS has a

• f

assets and skills… …which will be complemented and leveraged to within a strategy focused

• n domestic market

share growth… …supported by benchmark

• perational efficiency that

will drive margin growth and while maintaining a strong balance sheet… …that will enable us to

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25% 26% 26% 29% 30% 31% 33% 33% Telco Revenue Market Share

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Top Note: Retail Revenue Market Shares reported by ANACOM used as from 2015.

2018 Target

14 14

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Residential Fixed Access ARPU, Fixed Access Convergent Penetration [Euros, %] Relative Performance of Pay TV, Fixed BB, Fixed Voice and Mobile RGUs [Rebased, 1=1Q14]

Note: Converged + Integrated Fixed Access Subscriber penetration used from 1Q18.

15 15

A History of Innovation

IRIS

2011

Youtube Leanback

2017

RDK STB 4K

2016

nPVR

2014

7 Day Restart

2013

UMA New Interface

2018

NOS Play

2015

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New generation

• f internet

equipments

2019

UMA v2 hybrid set-top box

2020

16 16

NOS TV Internet equipments UMA

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Hybrid Set-Top Box

17

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Customer centric value propositions Personalized customer-base management Take advantage of technological disruptions Explore segments and channel opportunities

18

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IT Solutions

IaaS and Data centre services, Managed Services Security and IT Governance Better segmentation with greater use of analytics and targeted sales channels

Central Pro

Virtual solution for professional management calls

Wi-Fi Pro

Provides tailor made professional WiFi solutions for SMEs Transformation of operating and service model and focus on customer service and satisfaction Offer simplification and focus on segment relevant innovation with more IT based solutions

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Evolve HFC Grow FttH

+

Full duplex (N+0) Distributed architecture DOCSIS 3.1 10 GPON Footprint Mbps

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23 23

FttH Swap: HP delivered to date (cumulative) CAPEX Per Home FttH Network (NOS, DST and VDF)

VDF to NOS NOS to VDF 2.6 million FttH households to be swapped with Vodafone until 2022 (1.2 million NOS, 1.4 million Vodafone)

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50 100 150 200 250

(Euro) 2019 2016 2015 2017

Cost per Home (FttH – NOS) Cost per Home (FttH – Total)

• 60%

2018

24 24

NOS FttH Evolution (NOS, DST and VDF)

[Million Homes]

% NOS Homes Passed with FttH

HFC FTTH (NOS)

Note: FttH includes DST and Vodafone Institutional Presentation

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25 25

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4 February 2020

• 14 April 2020
• ≈
• ≈

≈

26 26

+200% 4G capacity Increased 4G capacity and coverage in 92.5% (indoor coverage) and 99% (outdoor coverage) of the network Option to gradually refarm 2100Mhz (+4G capacity and 3G network renewal) Future Proof 4G network Complete modernization of 3G network Global network optimization + Voice Capacity / EDGE data + 2G capacity (TRX): 25% 15% of sites with reinforced coverage Global network optimization plan

Improve 3G and 4G data QoE + data coverage (99% of population covered) Enable new 4G offers over 150/50M + voice coverage Improvement

• f voice

call quality Decrease in dropped calls

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Before After Before After Before After implemented “Excellent” retention rate

23% 24% 100%

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User Throughput Voice Quality Drop Call

28

Digital Data Management & Adv. Analytics RPA & AI New Ways of Working

TRANSFORMATION PROGRAMME

Customer Lighthouse Next Gen Marketing & Sales Customer Service 4.0 Service Failure Avoidance and Mgmt Offer Simplification Segment

• f One

Relationship Lifecycle Management E2E Process Integrity New Service Models Smart Network and Operations Zero Waste Simplify & Automate

Customer Experience Offer and Business Model Customer Centric Processes Fitness Enablers

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STRATEGIC AMBITION CORE OBJECTIVES

Revolutionize Customer Centricity focusing on quality and experience

1.

Build a Fitter Operating Model

2.

Achieve NPS leadership Boost digital weight on total client interactions Capture recurring cash savings

29 29

Focus on vision and ambition set-up Main focus on initiative design and planning Main focus on implementation and capture of quick wins Main focus on monitoring and boosting impacts

100 FY18 FY22 60 FY17 FY21 40 FY20 FY19 80 20

All initiatives in monitoring mode 1st wave initiatives into monitoring mode Launch of 1st wave initiatives Launch of 3rd wave initiatives 1st wave initiatives into execution mode Launch of 2nd wave initiatives 2nd wave initiatives into execution mode

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1 2 3

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4 2 3

wbcsd

1

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3 2 1 4

33

34 34

Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

35 35

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Top Note: Growth rates as reported in each period.

Consolidated Revenues

(YoY, %)

Audiovisuals Revenues

(YoY, %)

Telco Revenues

(YoY, %)

Cinema Exhibition Revenues

(YoY, %)

36 36

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Fixed Growth

[2014-2019]

Mobile Growth

[2014-2019]

NOS Network OPEX

[M €]

37 37

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Other Commercial Costs Customer Related W&S Supplies & External Services Support + Maintenance

Direct Costs [M €] Non-Direct Costs

[M €]

Total OPEX [M €]

38 38

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Non-Recurrent Impact

Consolidated EBITDA and Margin

(Millions of Euros, %)

Telco EBITDA and Margin

(Millions of Euros, %)

OCF Incl. Leasings, % of Revenues

(Millions of Euros, %)

FCF Bef. Dividends, Recurrent FCF as % of Revenues (Millions of Euros)

Recurrent FCF Growth

39 39

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Total CAPEX Including Leasings

(Millions of Euros)

Telco CAPEX Excl Leasings, % of Telco Revenues (Millions of Euros, %) 2019 Customer CAPEX Breakdown (%)

2019 Technical CAPEX Breakdown (%)

40 40

Average Cost of Debt [%]

Net Financial Debt, Net Financial Debt/EBITDA AL [€millions, X]

credit rating in 1Q18 (reaffirmed in 1Q20 by S&P) recognizes operational prospects and financial stability

Stable Outlook Stable Outlook

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Cash & Liquidity Position

Net Debt, Net Debt/EBITDA

[€millions, X]

41 41

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Dividend Per Share

[Euro Cents]

Payout as % of Net Income

[%]

Payout as % of Free Cash Flow

[%]

42 42

43

Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

44

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Top Results Update 1Q20

45 45

Agenda

Results Update 1Q20

i ii iv iii

46 46

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Fixed Access Pay TV – Net Adds

[Thousands]

Fixed BB and Fixed Voice – Net Adds

[Thousands]

Mobile – Net Adds

[Thousands]

47 47

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NOS Ntw Expansion / Fixed Pay TV Net Adds [Thousands] Fixed Residential Churn

[Rebased, 1Q15 = 100]

48 48

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Convergent+Integrated Sub, RGUs/Sub [Thousands, Unit] Convergent+Integrated Penetration

• f Fixed Access Subs

[%]

Fixed Residential ARPU

[Euros]

49 49

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Top Results Update 1Q20

≈ ≈

Traffic Evolution

[%]

50 50

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Top Results Update 1Q20

• [Millions of Euros]

51 51

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Top Results Update 1Q20

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Top Results Update 1Q20

Open Stores

[%]

Traffic in Stores [%] New Pay TV Customer Sales

[Sales Channels Split, %]

53 53

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Top Results Update 1Q20

NOS Cinema Tickets Sold

[Millions]

NOS Cinema YoY Growth

[%]

54 54

Agenda

Results Update 1Q20

i ii iv iii

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Top Results Update 1Q20

56 56

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Top Results Update 1Q20

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Agenda

Results Update 1Q20

i ii iv iii

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• 4.

• 3.

• 2.

• 1.

• 3.

• 2.

• 1.

• 20.

• 10.

Consolidated Revenues and YoY Change [Millions of Euros, %] Telco Revenues and YoY Change [Millions of Euros, %] AV & Cinema Revenues and YoY Change [Millions of Euros, %]

59 59

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Telco Revenue Growth

[%]

Consumer, Business, Wholesale & Others YoY Change [%]

60 60

60

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Consolidated EBITDA, EBITDA Margin [Millions of Euros, %] Telco EBITDA, EBITDA Margin [Millions of Euros, %] AV & Cinema EBITDA, EBITDA Margin [Millions of Euros, %]

61 61

61

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Top Results Update 1Q20 (120.0) (100.0) (80.0) (60.0) (40.0) (20.0) 0.0 20.0

Consolidated Net Income

[Millions of Euros]

Cost Breakdown Below EBITDA

[Millions of Euros]

62 62

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Total, Telco and AV & Cinema CAPEX

• Excl. Leasing Contracts [Millions of Euros]

Technical CAPEX

[Millions of Euros, %]

Customer CAPEX, % of Telco Revenues [Millions of Euros, %]

63 63

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EBITDA – Total, CAPEX Total Excl. Leasings

[Millions of Euros]

Operating Cash Flow

[Millions of Euros]

Free Cash Flow

[Millions of Euros]

64 64

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Net Financial Debt, Net Financial Debt/EBITDA After Leases [Millions of Euros, X] Average Cost of Debt

[%]

65 65

Agenda

Results Update 1Q20

i ii iv iii

66 66

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Top Results Update 1Q20

14 April 2020

• 1 April 2020

67 67

68 68

Agenda

Results Update 1Q20

38

Executing on Strategy

10

NOS at a Glance

3

Appendix

63

Financial Highlights

28

69 69

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Population (1) 10,276,617

• GDP per Capita (Current Prices) (2)

19,632.45

• GDP Growth 2019 (3)

+2.2%

• GDP Growth Forecaste 2020 (3)
• 3.7%
• GDP Growth Forecast 2021 (3)

+0.7%

• GDP Growth Forecast 2022 (3)

+3.1%

• 1st Homes (4)

4,148,007

• Pay TV (4)

4,114,823 99.2% Broadband (4) 4,007,053 95.7% Fixed Voice (4) 4,603,101 90.4% Mobile incl BB and Voice

(4)

17,267,726 168.0% Mobile Broadband (4) 8,095,113 78.8% Smartphone Penetration (5) 75%

• PC Penetration (1)

71.5%

• NOS Fixed Access Homes Passed:

4,646,123 Eurodocsis 3.0 Brand (MHz) Upstream 5 to 65 Downstream 110 to 750/860 (40% coverage) Technology Frequency Mhz Allocated Type Renewal 2G-GSM 900 (GSM-P) 15,6 FDD 2027 3G-UMTS 2,100 30 FDD 2033 4G-LTE 800 20 FDD 2027 4G-LTE 1,800 28 FDD 2027 4G-LTE 2,600 40 FDD 2027

(1) Source: INE (2) Source: IMF (3) Source: Bank of Portugal (4) Source: ANACOM. Pay TV, Broadband and Fixed Voice: residential penetration (5) Source: Marktest. Institutional Presentation

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72 72

HFC network starting point >1,000 homes

=

32-128 homes 100 – 1,000 homes Capacity is managed in an efficient “need to” basis Docsis 3.1 is the current norm Removes active elements from the network (less opex) Is a step function deployment strategy Evolution to Remote Phy / Mac Phy in

• rder to move fibre deeper into the

network as needed 10-100 homes

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73 73

Standalone Shared

(with VDF)

Penetration Market Share CAPEX HH Density FttH Cost Per Home Passed ≈100-250€ 2014-2017 ≈100€ >15% >25%

4P

40%

3P

60%

35 – 40 € AVERAGE SAC CPE 350 – 400 € Sales commissions Installation + Other

Peak funding reached in first 2 years – network CAPEX and SAC 3-4 years to reach target penetration Target IRR 18%

AVERAGE ARPU AND CUSTOMER PROFILES

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By the end of the project, we will have the most advanced network in Portugal with a significant advantage in terms of future CAPEX requirements

Best user experience Significant reinforcement of capacity and coverage, in line with traffic and customer growth Focus on 4G technology Compact and multi- technology architecture 2G/3G/4G Equipment enabling more efficient network resource management, reduced energy consumption and

• perating costs

3G to 4G network reconversion 3G network converted to 4G, keeping pace with handset migration Quick response and less investment Gbps ready network, IoT and 5G evolutionary Layers of 4G capacity and new funcionalities enable evolution to Gbps IoT HW ready for NB IoT 5G evolutionary network

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75 75

Source NOS estimates, Company reports and ANACOM. As from 1Q18, ANACOM have changed criteria and therefore previous periods may not be directly comparable. Institutional Presentation

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Total Market Net Adds [Thousands] PT Vodafone Nowo

Source: Anacom. As from 1Q18, ANACOM have changed criteria and therefore previous periods may not be directly comparable. Institutional Presentation

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77 77

Source: Anacom. As from 1Q18, ANACOM have changed criteria and therefore previous periods may not be directly comparable.

PT Vodafone Nowo

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Total Market Net Adds [Thousands]

78 78

PT Vodafone Nowo

Institutional Presentation Source: Anacom. As from 1Q18, ANACOM have changed criteria and therefore previous periods may not be directly comparable.

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Total Market Net Adds [Thousands]

79 79

PT Vodafone Others

Institutional Presentation Source: Anacom. As from 1Q18, ANACOM have changed criteria and therefore previous periods may not be directly comparable. Market Shares of Active Accesses with Usage Excl M2M and PC/Tablet/Pen/Router.

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Total Market Net Adds [Thousands]

80 80

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Total Portuguese Telecom Market Revenues

[€millions]

Source: Anacom.

81 81

PT Vodafone Nowo

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82 82

Shareholders (Last Update: 15 May 2020) Nr of Shares % Share Capital

ZOPT, SGPS, SA 268,644,537 52.15% Banco BPI, S.A. 25,803,574 5.01% MFS Investment Management 11,049,477 2.14% Norges Bank 10,891,068 2.11% Others 198,772,724 38.58% 0,8% 10,8% 6,7% 3,2% 4,6% 0,3% 0,2% 1,1% 3,6% 0,5% 0,5% 0,8% 1,5% 0,6%

Portugal US UK Norway Spain Luxembourg Switzerland Belgium France Sweden Italy Germany Rest of Europe Rest of World

DECEMBER 2019

(NASDAQ BI-ANNUAL SHAREHOLDER ID, % OF SHARE CAPITAL)

FREE FLOAT ZOPT SGPS, SA

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Ângelo Paupério ​Miguel Almeida ​José Pedro Pereira da Costa ​Ana Paula Marques ​Jorge Graça ​Luís Nascimento ​Manuel Ramalho Eanes Ana Rita Ferreira Rodrigues Cernadas António Domingues ​António Lobão Teles António Lobo Xavier Catarina Tavira Van-Dúnem Cristina Maria de Jesus Marques João Torres Dolores Joaquim Oliveira ​José Carvalho de Freitas Maria ​Cláudia Azevedo

Remuneration Committee

Statutory Auditor Company Secretary Ethics Committee Board of Directors Fiscal Board

Executive Commitee

Audit and Finance Commission Corporate Governance Commission Appointment and Evaluation Commitee

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Miguel Almeida CEO

Executive members of the Board

José Pedro Pereira da Costa Vice-President – CFO Ana Paula Marques Vice-President Executive board member Luís Nascimento Executive board member Manuel Ramalho Eanes Executive board member Jorge Graça Executive board member

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[+2€ = 3GB; +5 € = 5GB; +9€ = 10 GB] Institutional Presentation

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recording recording

86 86

Institutional Presentation

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Top Source: Apritel, Portuguese Telecom Operators Association. VAT and PPP applied. Analysis as of July 2019.

87 87

Rua Ator António Silva, 9 1600-404 Lisboa, Portugal

INVESTOR RELATIONS TEAM

Maria João Carrapato Henrique Rosado Clara Teixeira henrique.c.rosado@nos.pt clara.p.teixeira@nos.pt maria.carrapato@nos.pt +351 21 782 47 25 +351 21 782 47 35 ir@nos.pt

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