CTT-Correios de Portugal

Investor Presentation • May 4, 2023

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UPDATE ON REAL ESTATE STRATEGY

Disclaimer

DISCLAIMER

This document has been prepared by CTT – Correios de Portugal, S.A. (the "Company" or "CTT") exclusively for use during the presentation update of CTT's Real Estate strategy, including the signing of the SPA regarding the envisaged transfer of RE properties to CTT IMO YIELD, S.A. ("SPV") and envisaged sale of a minority stake in the SPV. 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 (ii) the information contained herein has not been verified, reviewed nor audited by any of the Company's advisors.

Except as required by applicable law, CTT does not undertake any oblicly update or revise any of the information contained in this document. Consequently, the Company does not assume liability for this document f 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.

CTT is pursuing a dual strategy for the optimisation of its real estate portfolio

Yield Portfolio -

Portfolio optimisation

• √ c. 400 assets, representing €105m of book value1 / €139m transaction value2
• √ Predictable yield play with upside from utilisation of c. 25% of vacant space

transaction being announced

CTT IMO YIELD

• √ Upside from yield generating properties with development potential
• √ Build-to-suit capabilities supporting CTT's retail and logistics needs

Development Assets

Asset by Asset optimisation3

• √ 10 assets, representing €26m of book value / €50-60m market value
  • ✔ Land plots owned by CTT
  • ✔ Logistic assets, that can be relocated, in city centres with strong development potential

future transactions to be evaluated on an asset-by-asset basis

As at 31December 2022. Equivalent othe expected and corresponding selling rice to the investors. Opportunities being pursued by a dedicated internatean.

Yield Portfolio

CT

Ctt II

• Incorporating a SPV
• partial sale to investors

• · Appointing a professional manager to enhance value

• √ 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
• √ 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%

By conversion of CT MO YE.D. A subject break of the comptional by the career in a lind clear con all properies of Holly of bio in included to the leasted by control of includ documentation. Condition precedent of a minimum investment of €30m by new investors, excluding Sierra.

Sierra is an experienced investment, property and asset manager

Yield Portfolio

Sierra Songe	A global, fully vertically integrated real estate player		Mixed-Use Food markets Residential & Living	Retail Workplaces Logistics
	Development		Investment Management		Management Services
	Construction Phase		Transaction Phase		Ownership Phase
Own assets track record	>65 €1.0bn to deploy in the next 5 years (focus on mixed-use, residential, offices, light retail, logistics)		€ 6.3 bn OMV transacted since 2013	€2bn debt managed	~430FTES Property management Property and in Property Condominium Management management, Food Markets
~190 FTEs Reify	~300 new contracts a year		€ 6.2 bn AuM1	15 Investment vehicles< (incl. 3 regulated fund management companies)	~180 ~3.0m Assets sqm managed managed

Sierra has strong competences to improve the real estate portfolio of CTT through increase of occupancy rates and development opportunities Significative experience in active asset management, which helps maximizing the future value of the portfolio

1As of December 2022; 2All assets excluding LatAm.

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 ratest and the state state capitir and the said hite " becade the SP continuer to minum sales process of C. So " Comments monthern we store of the respected to correction, have all expection and the baseccess in clicided and in PETT and comeralization of comercialization yee, Filter prossible reaction of PETT and opende lancoments o not be subject to RETT; ?Mainly set-up fees; ®Annualised, assuming all properties transferred.

Clear value creation drivers to be pursued

Utilisation of vacant portfolio

Improvement of portfolio's utilisation rate through leasing of vacant area (c. 25% of GLA)

Active portfolio management

Dedicated vehicle capable of providing most competitive locations and formats to serve CTT's retail (postal, banking, financial services) and logistic needs

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Cost efficiency

Economies of scale derived from association to the Portugal's largest real estate manager; Reduction of operational costs through standard solutions and increased bargaining power over suppliers .

Financial capacity

Strong operational cash flow generation; Unlevered portfolio with strong capacity to promptly react to market opportunities; Additional cash flow expected from asset rotation strategy for non-core assets.

Build-to-suit1 initiatives

Permanent cooperation between the Manager (Sierra) and Main Tenant (CTT) to understand specific needs on each location and offer best-inclass assets from market and ESG point-of-view

Development2 opportunities

Maximisation of valuation for properties with development potential3

Personity of a quingade ed propeties for contrademalitation uposes to be esection confies of he CTT (Toup) Corstitus on processions of increations one of increations of en properties' main characteristics -30 portunities already identified with an aggregated asset valuation of c. €10 m;

2H23

2Q23
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Up to 12 months after completion of phase one

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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
• √ 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
• ✔ Strongpotential 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

Development Assets

• Asset-by-asset strategy
• Best partner for each asset to be considered
• · Strategic value for CTT to determine development route

Further potential upside from development projects

Key development assets aggregated data

• Out of the 10 development assets, there are four relevant real estate properties identified, including a mix of land plots, logistic assets and warehouses and prime location buildings
• · Aggregated data of the key development assets:
  • Book Value: €24m ●
  • Land plot area: c. 53.0k sqm
  • Implantation area: c. 33.5k sqm
  • GCA: c. 56.8k sqm

~€50-60m potential value in assets that will not be core to CTT's future logistics network and may be released within 2-5 years

CTT - Correios de Portugal, S.A.

Investor Relations

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

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Delivering the future by connecting people and businesses in a sustainable way

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Geographically diversified portfolio

Location

✔ Scattered asset portfolio throughout all 18 districts of Continental Portugal and autonomous regions. >50% of transaction value concentrated in the districts of Lisbon and Oporto

Geographic Distribution