CTT-Correios de Portugal

Investor Presentation • May 4, 2023

city 1Q23 RESULTS PRESENTATION

4 May 2023

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 first quarter 2023 results (1Q23). 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-LOOKING STATEMENTS

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

Robust operational performance in Portugal and strong FCF generation

• Portugal: Strong growth of CEP volumes in Portugal (y.o.y: +14.7% in 1Q23)
• Spain: Visible improvement in activity throughout a challenging quarter

Revenue growth and cost reduction drove profitability improvement

• · Revenues up by 3.0% y.o.y. in 1Q23, notwithstanding special events in 1Q22 in Mail (€ 3.493m - elections) and business services (€21.505m-laptop sales)
  • were up by 15.3%

• · Recurring EBIT of €25.7m (+285.3% y.o.y.)

• Exceptional high demand of public debt certificates continues to drive record high revenues in Financial Services & Retail

• Continued transformation of retail network towards services
• Early results from insurance distribution agreement with Generali

• Client, volumes and revenue with solid performance and growth
• Growth-driven profitability improvement

Recovery in mail revenues

• · Strong operating cash flow qeneration of €44.2 m (+326% y.o.y.)
• Free cash flow of €39.7m (up by 6.4x y.o.y)
• · Consolidated net cash1 position of €17.3m (€47.1m improvement vs. FY22)
• With Banco CTT equity accounted, net debt1 stood at € 150.1m, down € 42.5m vs. FY 22

Robust performance across all segments in Portugal, while focus is on improving E&P in Spain

1Q23 highlights

Group CTT - Financials Recurring EBIT evolution € million € million; % change vs. prior year 1023 +285.3% 25.7 €241.8m Revenues 1 (+3.0%) +6.0 6.7 €25.7m Recurring EBIT 1Q22 △E&P = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Δ Mail and 1Q23 △FS&R △ Banco CTT (+285.3%) Recurring EBIT Others

	Mail & Other²		Express & Parcels		Financial Services & Retail		Banco CTT
	Revenues	Recurring EBIT	Revenues	Recurring EBIT	Revenues	Recurring EBIT	Revenues	Recurring EBIT
1Q23	€114.4m (-14.3%)	€2.7m (+181.3%)	€64.7m (+5.4%)	€0.7m (-50.1%)	€28.7m (+141.6%)	€18.1m (+245.6%)	€34.1m (+21.4%)	€4.3m (+25.3%)

Continued recovery in volumes, revenues and profitability

E&P Portugal

Express & Parcels Portugal | CEP Volumes % change vs. prior year

Express & Parcels Portugal | Revenues € million; % change vs. prior year

Express & Parcels Portugal1|EBITDA & EBIT € million; % change vs. prior year.

3.5

1Q22

+5.8%

3.7

1Q23

1Individual accounts.

Volumes performance, inflation and capacity expansion penalized profitability

A - E&P Spain

CEP Volumes

million items; % change vs. prior year

Express & Parcels Spain | Revenues € million; % change vs. prior year

Express & Parcels Spain¹|EBITDA & EBIT € million; % change vs. prior year.

% change vs. prior year +10.0 -14.3 -19.0 +7.1%) ( +0.6%) F Feb Jan 29.7 29.5 +3.9% 27.6 -8.3%) -58.7% 0.9 10.1 9.7 9.3 0.4 1Q21 1Q22 1Q23 1Q21 1Q22 1Q23 1Q22 1Q23 ( 160 147 157 Per working day -0.8 (k items)

-1.5

lmproving traffic and revenue dynamics leading to mail revenue growth

Mail & Other

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Revenues

1 Includes bull and advertising mail; 20.0% y.o.y;

Focus on transforming CTT's retail network in a powerhouse of services to the

citizen de contrasti

Focus on the portfolio of services ...

... while transforming our in store experience

Savings

In-store and online distribution Strong dynamics drive walk-ins

C 1

Non-life insurance

Auto Home Travel Health

Money transfer services

Western Union direct-to-bank corridors Payshop and postal agents networks

B 1

Payment Services

Pensions Tax payments Toll Payment Utilities Aerial Transport subsidy

Strengthening the self-service and digital approach

Expansion of the Locker network Implementation of self-service kiosks Reinforcement of omnicanality

In-store process redesign

Opening more self-service convenience spaces 24/7 Layout re-evaluation and redesign Waiting areas with improved digital experiences and information

Public debt placements driving revenue performance and offering solid outlook

Financial Services & Retail

Financial Services

Retail products & services

Balanced and strong growth

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Banco CTT – Evolution of volumes

€ million, except otherwise indicated

1 Net of impairments; 2 Consolidated contribution; 3 Average cost of customer deposits.

Revenue growth, driven by volumes and interest rates, is underpinning RoTE

Banco CTT

1 Recurring RoTE;

Growth of revenues and recurring EBIT coupled with strong FCF generation

Key financial indicators

€ million; % change vs. prior year		Quarter
	1Q22	1Q23	y.o.y
Revenues 1	234.7	241.8	+3.0%
Operating costs - EBITDA 2	212.7	201.0	-5.5%
EBITDA ²	22.0	40.8	+85.2%
Depreciation & amortization	15:4	15.1	-1.6%
Recurring EBIT 1	6.7	25.7	>>
Specific items	-2.7	0.7	n.m.
EBIT	9.4	25.0	>>
Financial result	-2.1	-3.1	-46.4%
Tax	1.8	5.7	>>
Net profit attributable to equity holders	5.4	16.1	>>
Free cash flow	6.2	39.7	>>

Revenue growth, notwithstanding mail penalised by elections and by box-moving laptop project in 1Q22

Revenues 1

€ million; % change vs. prior year

Revenue 1 breakdown

€ million; % change vs. prior year; % of total

Further initiatives to be implemented in the cost structure

Operating costs 1

€ million; % change vs. prior year

Operating costs (Rec. EBIT) 'breakdown

€ million; % change vs. prior year; % of total

In 1Q23:

• · E&P costs grew by €3.7m mainly due to increased costs associated with the expansion of sorting centres and the increase in fuel prices
• · Mail & Other costs decreased €24.5m, given that in Q22 there were higher revenues and costs related to the laptop sales project

· Banco CTT costsinceased C5.1mparth as aresult of mail of colume crowth and due to the Coll volume on more credit ook 1 Excluding Specific items; 2 Including Central Structure

Strong EBIT performance -

Recurring EBIT 1

€ million; % change vs. prior year

Strong cash flow generation leading to a consolidated net cash position

1Q23 Cashflow

€ million; impact on cash flow vs. prior year

31 March 2023 Net financial debt 2 € million

EBITDA		40.8 (+18.8)
Non-cash items 1	0.4-	(+2.7)
Specific items impacting EBITDA	-0.7 -	(-3.4)
Capex	-5.6-	(-0.4)
Change in working capital	9.2	(+15.4)
Operating cash flow		44.2(+33.8)
Tax	-0.1-	(-0.1)
Employee benefits	-4.4-	(-0.2)
Free cash flow		39.7 (+33.4)

(+) Cash & cash equivalents	589.0
(-) Net Financial Services & Other payables 3	449 4
(-) Banco CTT liabilities, net 3	-145.6
(-) Other 4	44.6
(=) Adjusted cash	240.6
(-) Financial debt	105.2
(=) Net cash position	135.4
(-) Lease liabilities (IFRS 16)	118.2
Net financial debt 2	-17-3

Consolidated

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• √ CTT yield portfolio to be carved into a new entity (CTT IMO YIELD)
• ✔ CTT IMO YIELD will be a SPV with a 10-year duration in the form of a real estate fixed capital investment company (SICAFI) 1
• V Upon conversion to SICAFI, CTT IMO YIELD to be managed by an independent and experienced external manager (Sierra)
• √ External investors will buy from CTT a stake of 30.1%, equivalent to €42m²
  • √ Investors, institutional and family offices, to invest €37m² and take a stake of 26.5%3
  • √ Sierra will co-invest in the vehicle an amount of €5m², which will translate to a 3.6% stake
• V CTT IMO YIELD to be fully consolidated into the CTT Group, notwithstanding maintaining flexibility to reduce its participation to a minimum level of 50.1%

Byconversion CTTMO YE.D.S.A.subjectores production and tricerances in cluding to concept in a lind and the conceine and the conceine and the conceine of included to included documentation. Condition precedent of a minimum investment of €30m by new investors, excluding Sierra.

Key highlights of the transaction

Transaction highlights

• Transaction value if all assets are transferred1:
  • = Fixed value: €136.4m
  • = Earn-out: €2.6m²
  • Assets can be transferred in (i) phase one and (ii) up to 12 months after completion of phase one
• Agreed sale of stake if all assets are transferred:
  • Fixed price: €42m 3
  • Base case investment cash-yield: 6.3%4
• Estimated one-off transaction costs if all assets are transferred:
  • = = For CTT: €12m5, mainly tax (one-off6)
  • = For CTT IMO YIELD: €2m7

Transaction optionality

• Additional Liquidity Buffer for CTT
  • Potential additional sale subject to CTT keeping a 50.1% stake
  • Not subject to additional RE transaction costs
• Upside cash flow generation:
  • = Sale of earn-out properties
  • Monetisation of unused assets
  • Gains on development projects

Lease agreements highlights

• CTT will become the main tenant under long term leases representing c.75% of GLA
• Properties fully or partially leased to CTT will comprehend two main categories:
  • · Minimum lease period of 20 years: ~32% of total assets transferred
  • = Minimum lease period of 12 years: ~55% of total assets transferred
• The contract leases of CTT are triple net, with CTT being responsible for:
  • Insurance
  • Taxes (IMI/AIMI)
  • Maintenance and condominium
• CTT rents, inflation-linked, will amount to €9.5m8 in year one

Noterio in the radest and the state capit addition and includination in the Planting minum seles press of C.So. "Comments resort of the essetted breence the correction, have all expection and the baseccess prosidential non METT and comercial requirism of counserialization yees, Flux epsociation of PETT and opender resolucioned in not be subject to RETT; ?Mainly set-up fees; ®Annualised, assuming all properties transferred.

The yield portfolio transaction brings clear benefits

Crystallisation of Real Estate value

• ✔ The market will get full visibility on the market value of Yield Portfolio assets based on regular appraisals produced by independent experts under supervision of CMVM
• ✔ Aggregated value of CTTs positions in CTT IMO YIELD and Banco CTT at prices agreed with partners, represent c. 68% of total market capitalisation1

Efficient management of portfolio

• The portfolio will have an experienced manager, with a strong track record in real estate
• √ Upside expected from portfolio optimisation through maximisation of rental income, reduction of costs and promotion of successful development initiatives
• V Operation of CTT's retail and logistics will benefit from a more efficient operation and flexibility to invest in network expansion in Portugal and in Spain

Possible future liquidity

• ✓ Unlevered portfolio with extensive capabilities to self-finance development initiatives
• ✔ Strong potential for asset rotation of vacant or unused properties
• ✔ CTT to hold an extra liquidity buffer for a 19.8% equity stake in CTT IMO YIELD

The transaction will allow CTT to remain owner of its core real estate portfolio, while crystallising and enhancing its market value

Upgrading recurring EBIT guidance

lmproving E&P performance in Portugal, while Spain recovery is behind schedule but already with early positive signs that will enable profitability improvement

Improving revenue performance driving mail profitability, with focus on costs and margins sustainability

Transforming the retail network into a service platform, with special focus on savings and insurance distribution

Banco CTT is delivering on volume, revenue and profitability growth

Strong quarter with consolidated revenue and recurring EBIT growth

Strong cash-flow generation improving financial flexibility

Real Estate transaction crystallises value and enhances further balance sheet flexibility

We are upgrading our recurring EBIT guidance to "at least €80m in 2023"

CTT - Correios de Portugal, S.A.

Investor Relations

Phone: +351210 471087 E-mail: investors@ctt.pt

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