CTT-Correios de Portugal

Capital/Financing Update • Jul 27, 2022

CTT – Correios de Portugal, S.A. Avenida D. João II, 13 1999-001 LISBON Lisbon commercial registry and fiscal no. 500 077 568 Share Capital EUR 75,000,000.00

Announcement – Lisbon, 27 July 2022

Material information

CTT – Correios de Portugal, S.A. ("CTT" or "Company") hereby informs that, following the negotiation process conducted by the parties (ANACOM – National Communications Authority, DGC – Consumer Directorate-General and CTT), today it signed the Universal Postal Service Pricing Convention for the 2023-2025 period.

The Convention covers the same services which in the previous legal framework were the subject of ANACOM's decisions on the pricing criteria for the universal postal service, thus covering letter mail, parcels and newspapers and periodicals services which are part of the Universal Postal Service offer, including registered mail services used in legal or administrative proceedings, and not applying to special prices of postal services for bulk mail senders (subject to the specific regime provided for in article 14-A of the Postal Law).

The main features of the pricing regime of the services covered by the Convention are as follows:

• The set-up of a maximum annual variation of the prices of the basket of services covered by the Convention, which will be ascertained as per the following formula: CPI - ∆Volumes * (1 - VC) - E + K, which is translated as follows:

CPI inflation rate in the last 12 months ending in June of the previous year;

• ∆Volumes year-on- year variation in volumes in the last 12 months ending in June of the previous year, excluding bulk mail;
• VC weight of variable costs in total costs associated to the universal postal service (value defined at 16% for each year);
• E efficiency factor associated to CTT's activity within the universal postal service (value defined at 0.5 percentage points for each year);
• K additional factor to be triggered in the event of significant contextual changes related to the conditions for the provision of the universal postal service. Its value shall be determined by agreement between the parties that integrate the Convention.
• The definition for each price of a maximum annual variation of 15% and a maximum overall variation of 30% for the whole three-year period of the Convention.
• The setting of a maximum annual variation of 4 cents for the price of ordinary domestic mail up to 20 grams, used by the occasional segment.

CTT – Correios de Portugal, S.A. Avenida D. João II, 13 1999-001 LISBON Lisbon commercial registry and fiscal no. 500 077 568 Share Capital EUR 75,000,000.00

• The continued application of the principle of uniform tariffs, with the application of a single price throughout the territory, to domestic letter mail items up to 50 grams sent by users in the occasional segment and in registered mail items of the service of judicial and other postal notifications weighing up to 50 grams.
• The provision by CTT, free of charge, in the domestic and international service, of mail dispatches for the blind and partially sighted, with the exception of airmail surcharges, if any.

The pricing convention signed today shall be notified to the Government by the deadline set for this purpose, i.e. 30 July.

This information to the market and the general public is made under the terms and for the purposes of article 29-Q of the Portuguese Securities Code and other legislation in force in Portugal. It is also available on CTT website at:

https://www.ctt.pt/grupo-ctt/investidores/comunicados/index?language_id=1.

CTT – Correios de Portugal, S.A.

Guy Pacheco Market Relations Representative of CTT Nuno Vieira Head of Investor Relations of CTT Contacts: Email: investors@ctt.pt I Fax: + 351 210 471 996 I Phone: + 351 210 471 087