CTT-Correios de Portugal

Investor Presentation • Oct 29, 2024

Disclaimer

DISCLAIMER

This document has been prepared by CTT – Correios de Portugal, S.A. (the "Company" or "CTT") exclusively for use during the presentation of the 9M24 results. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or entity, for any other reason or purpose without the express and prior written consent of CTT. This document (i) may contain summarised information and be subject to amendments and supplements, and (ii) the information contained herein has not been verified, reviewed nor audited by any of the Company's advisors or auditors.

Except as required by applicable law, CTT does not undertake any oblicly update or revise any of the information containedinthis document. Consequently, the Company does not assume liability for this documentif it is used for a purpose other than the above. No express or implied representation, warranty or undertaking is made as to, and no reliance shall be placed on, the accuracy, completeness of the information or the opinions or statements expressed herein. Neither the Company nor its subsidiaries, directors, employees or advisors assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.

This document has an informative nature and does not constitute, nor must it be interpreted as, an offer to sell, issue, exchange or buy any financial instruments (namely any securities issued by CTT or by any of its subsidiaries or affiliates), nor a solicitation of any kind by CTT, its subsidiaries or affiliates. Distribution of this document in certain jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about, and observing any such restrictions. Moreover, the recipients of this documentare invited and advised to consult the public information disclosed by CTT on its website (www.ctt.pt) as well as on the Portuguese Securities Market Commission's website (www.cmvm.pt). In particular, the contents of this presentation shall be read and understood in light of the financial information disclosed by CTT, through such means, which prevail in regard to any data presented in this document. By attending the meeting where this presentation is made and reading this document, you agree to be bound by the foregoing restrictions.

FORWARD-LOOKINGSTATEMENTS

This presentation contains forward-looking statements. All the statements herein which are not historical facts, including, but not limited to, statements expressing our current opinion or, as applicable, those of our directors regarding the financial performance, the business strategy, the management plans and objectives concerning future operations and investments are forward-looking statements that include the words "expects", "estimates", "foresees", "predicts", "intends", "plans", "anticipates", "will", "targets", "may", "would", "could", "continues" and similar statements of a future or forward-looking nature identify forward-looking statements.

All forward-looking statements included herein involve known risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results, performance or achievements to differ materially from those indicated in these statements. Any forward-looking statements in this document reflect our current views concerning future events and are subject to these and other risks, uncertainties and assumptions relating to the results of our operations, growth strategy and liquidity, and the wider environment (specifically, market developments, investment opportunities and regulatory conditions).

Although CTT believes that the assumptions beyond such forward-looking statements are reasonable when made, any third parties are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of CTT, what could cause the models, objectives, plans, estimates and / or projections to be materially reviewed and / or actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Forward-looking statements (in particular, the objectives, estimates and projections as well as the corresponding assumptions) do neitherrepresent a commitment regarding the models and plans to be implemented, nor are they guarantees of future performance, nor have they been reviewed by the auditors of CTT. You are cautioned not to place undue reliance on the forward-looking statements herein.

All forward-looking statements included herein speak only as at this presentation. Except as required by applicable law, CTT does not undertake any oblicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Operational review

ctt

ﺍﻟﻤﻮﺍﻗﻊ ﺍﻟﻤﻮﺍﻗﻊ ﺍﻟﻤﻮﺍﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮﻗﻊ ﺍﻟﻤﺘﻮ

Progression towards targets and FS normalising

Overview

Logistics

• Express & Parcels
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• Mail & Other
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Bank and Financial Services

• Financial Services
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• Bank
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¹Excludes specific items

2 Includes Express & Parcels and Mail & Other

³Recurring RoTE, cumulative, excluding specific items and normalized assuming a tangible equity of 15% of average RWAs, compatible with the CMD 2022 targets; Under the current capital structure the RoTE is 9.6% for 9M24.

Continued volume growth in E&P Iberia

Express & Parcels

Ready for a very strong peak season in 4Q24

Growth is driving scale and margin expansion

Express & Parcels

Volume growth underpinning operational leverage

Price and mix offsetting light, albeit improving, volumes

Mail & Other

4Q24 to benefit from more working days (+6.8% y.o.y)

Mail & Other

We are observing a recovery in volumes in October

Inflation, elections and lower FS drove expenses, notwithstanding cost cutting

U

Mail & Other | Rec. EBIT

€ million

Mail & Other

Mail & Other | Costs (Rec. EBIT level)

€ million

Cost efficiency programme ongoing with expected results in 2024 and onwards

Mail & Other

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Increase in ceilings driving strong recovery in public debt placements

Financial Services

Improved client engagement by BCTT driving resources

Bank

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Record RoTE in Banco CTT, in line with CMD22 targets

Bank

Consolidated EBIT and FCF should recover with improving debt placements

Financial Review

€ million; % change vs. prior year		Quarter
	3Q23	3Q24	y.o.y
Revenues'	235.0	267.9	14.0%
Operating costs - EBITDA-	199.5	228.1	14.3%
EBITDA2	35.5	39.8	12.2%
Depreciation & amortisation	15.8	20.2	27.8%
Recurring EBIT¹	19.7	19.6	-0.4%
Specific items	1.9	4.1	117.1%
EBIT	17.8	15.5	-12.8%
Financial result	-4.5	-4.9	-9.6%
Tax	3.8	2.4	-37.9%
Net profit attributable to equity holders	9.5	7.9	-16.2%
Free cash flow	16.6	-2.1	<<

	9 months
9M23	9M24	y.o.y
715.4	792.3	10.7%
299.8	681.7	13.6%
115 6	110.6	-4.3%
47.5	25.9	17.7%
68.1	54.6	-19.7%
11.0	6.7	-39.2%
57.1	48.0	-16.0%
-11.6	-13.1	-12.9%
10.0	6.4	-35.4%
35.5	27.8	-21.9%
645	85	-86.8%

E&P revenues growing 44% on 9M24

Financial Review

A very strong 2024 peak season expected in E&P

Continued focus on cost reduction lessens the impact of inflation and stronger activity

Financial Review

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EBIT penalised by inflation and FS performance, which is improving with the new ceilings

Financial Review

Further cost-cutting initiatives against a backdrop of lower volumes and cost inflation

Net debt reflects primarily dividends paid and SBB, while FCF should improve in 4Q24

Financial Review

	Consolidated
(+) Cash & cash equivalents	209.8
(-) Net Financial Services & Other payables 3	149.1
(-) Banco CTT liabilities, net 3	-217.6
(-) Other 4	43.6
(=) Adjusted cash	234.6
(-) Financial debt	79.8
(=) Net cash position	154.8
(-) Lease liabilities (IFRS 16)	157.5
Net financial debt 2	2.7

1 Impairments, provisions and IFRS 16 affecting EBITDA; ²Only financial debt presented in the table; it does not include net employee benefits of €129.7m as at 30 September 2024; ³The change in net liabilities of Financial Services and Banco CTT reflects the evolution of credit balances with third parties, depositors or other banking financial liabilities, net of the amounts invested in credit or investments in securities/banking financial assets, of entities of the CTT Group providing financial services, namely CTT financial services, Payshop, Banco CTT and 321 Crédito. ⁴The change in other cash items reflects the evolution of Banco CTT's sight deposits at Bank of Portugal, outstanding cheques/clearing of Banco CTT cheques, and impairment of sight and term deposits and bank applications

Outlook & Final remarks

ត្រី

Reiterating guidance based on strong outlook for 4Q24

Outlook

ctt

29 October 2024

We make our path fully committed to deliver 9M24 results presentation

Investor Relations

Phone: +351210 471 087 E-mail: investors@ctt.pt

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