CTT-Correios de Portugal

Investor Presentation • May 5, 2022

1022 Results Presentation

ctt Committed to deliver

5 May 2022

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 2022 results (1Q22). 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 reqarding 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

City Committed to deliver

Key takeaways

Transitory slowdown in E&P and investment in capacity to enable foreseen growth, impacting the quarter results

Mail revenues peratized by slowdown in e-commerce and adverse evolution of mix. Earnings momentum is improving following regulated price increase

Solid and expanding balance sheet positions Banco CTT for further revenue growth and offers interest rate leverage

Transformation continues to deliver on sustainable market share gains, namely in B2B where we regained important contracts in BPO, printing and finishing and mail volumes

Annual dividend, amounting to €12ct per share, to be paid on 20 May 2022 (ex-div on 18 May 2022)

Notwithstanding a difficult economic environment, with increased execution risks, we remain committed to achieving FY22 EBIT within E65-75m

Significant transformation by increasing exposure to growing businesses

Quarter marked by transitory e-commerce slowdown and challenging economic conditions

1 Excluding Specific items; 2 Including Central Structure.

EXPRESS & PARCELS

Notwithstanding a transitory loss of momentum in 1Q22, we are delivering consistent market share gains in Spain and maintaining our leading position in Portugal

Express & Parcels Revenues

€ million; % compounded annual growth rate

1Q22 reflects a combination of negative effects

• · Customers returned to physical retail
• Macro context impact on consumer confidence (-30 points in PT2 and -36 points in SP3)

Still, longer series highlight the persisting growth trend in both markets, converging with more mature e-commerce markets

7

E&P in Iberia reflects transitory slowdown and structural investment in growth and quality

EXPRESS & PARCELS

Notwithstanding the growth breather we continued to prepare the structure for the structural growth we see ahead

Express & Parcels Portugal – CEP Volumes

EXPRESS & PARCELS

% change vs. prior year; million items

fec ctt

Express & Parcels Portugal - Revenues

€ million; % change vs. prior year

CEP Cargo & other

E&P in Spain reflected continued improvement in volumes, revenues and profitability

Nevertheless, we believe e-commerce market will continue to grow

Latent potential to grow in Iberian market given penetration levels ...

E-commerce-relevant parcel 1 penetration, 2021. Number of parcels per capita per year 2

... with pandemic acting as a trigger to a lot of migration to ecommerce and many first purchases... 5

Mail volumes consistently declining less

Addressed mail volumes per working day

% change vs. prior year

Further progress in revenue transformation, while still impacted by lower inbound traffic and adverse mix effect

Mail revenues

€ million, weight (%)

Business solutions are growing, driven by special projects, NewSpring and underlying organic growth, including BPO services in utilities

Increased competitiveness in B2B, especially in utilities, is driving improvement in volumes, albeit at a lower pricing than average

E-commerce related volumes migrating to E&P and de minimis impact will wear out during the year – these are price-rich volumes with impact in revenues and EBIT

New pricing in USO services to kick in as from 2Q22 onwards

Mail EBIT to improve sequentially with price increase

1 Impact of de minimisin international mail revenues.

Inflation and geopolitical risks penalize subscriptions, while retail continues to grow

Financial Services

· Public debt placements reached €1.2bn 1Q22, with signs of a slowdown in demand from more risk averse investors, specially in March, who may not want to subscribe to products with longer maturities in a period of high inflation and geopolitical risks

Retail products & services

· Retail revenues growing in 1Q22 on the back of new products, renewed commercial dynamics and less restrictions on physical retail from the pandemic, when compared with 1Q21

1 Excludes other revenues that account for €0.04m in 1Q21 and €0.03m in 1Q22

Banco CTT posted another quarter of consistent growth across all activity lines

Banco CTT - Book volumes evolution

€ million, except otherwise indicated

Customer deposits & Off-Balance sheet savings

1 Net of impairments ; 2 Average cost of customer deposits.

Continued focus on ESG measures and alignment with UN Sustainable Development Goals

6,000 trees planted in 1Q22 in a long-standing partnership with Quercus

Acquisition of 71 electric vehicles and establishment of second 100% electric CTT hub

Installation of energy efficiency meters in buildings which represent 55% of CTT's energy consumption

Social

Campaign to collect goods in CTT post offices to help people of Ukraine, with more than 40 tons collected

Third edition of CTT's student monitoring program, where a group of students are being tutored by CTT employees

Financial review

cit Committed to deliver

Continued transformation notwithstanding difficult comparison base and challenging economic environment

Key financial indicators € million; % change vs. prior year		Quarter
	1Q21	1Q22	y.o.y
Revenues 1	205.3	234.7	14.3%
Operating costs - EBITDA <	176.3	212.7	20.7%
EBITDA ²	29.1	22.0	-24.1%
Depreciation & amortization	14.0	15.4	9.8%
Recurring EBIT 1	15.0	6.7	-55.7%
Specific items	-0.8	-2.7	-219.6%
EBIT	15.9	9.4	-41.1%
Financial result	-2.6	-2.1	19.2%
Tax	4.5	1.8	-59.7%
Net profit attributable to equity holders	8.7	5.4	-38.1%
Free cash flow	did	6.2	-37.4%

Decline in Express & Parcels segment driven by transitory slowdown in e-commerce

Revenues 1 € million; % change vs. prior year

Revenues 1 breakdown

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

Opex increase in Mail & other related with the sale of computer equipment

Operating costs

€ million; % change vs. prior year

Operating costs (Rec. EBIT) 2 breakdown

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

• · Staff costs increased in Mail & other (+2.6m) d New Spring (+3.1m) The remaining BU staff costs decreased (Express & Parcel Services & Retail - € 0.1m), with the exception of Banco CTT (+€ 0.6m)
• · ES&S costs grew by E9.7m, mainly as a result of a E3.3min the international on the international on the elections, a C1.9mincrease due the integration of NewSpringanda €1.6m increase in buildings & fleet due to the investment in additional operational capacity
• · Other costs increased by €20.8m, mainly due to the €20.7m costregistered in the sale of computer equipment

EBIT performance reflects decline in mail revenues and continued investment in quality and preparation for further structural e-commerce growth ahead

Recurring EBIT 1

€ million

Ample balance sheet flexibility with net debt to LTM recurring EBIT at 1.3x

1Q22 Cashflow

€ million; impact on cash flow vs. prior year

31 March 2022 Net financial debt 2 € million

(+) Cash & cash equivalents	766.2
(-) Net Financial Services & other payables 3	139.3
(-) Banco CTT liabilities, net 3	457.2
(-) Other 4	26.8
(=) Adjusted cash	142.9
(-) Financial debt	86.2
(=) Net cash position	56.7
(-) Lease liabilities (IFRS 16)	121.6
Net financial debt 2	64.9

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Closing remarks

We are building capacity to cope with future demand, preserving operational flexibility to adjust, if required

Commercial and marketing initiatives should improve customer intake, especially in E&P and business services

Profitability measures, namely in operations and central structure, have been intensified and will deliver results as from 2H22

EBIT generation improved throughout 1Q22 (81% of recurring EBIT in 1Q22 generated in March)

Previously identified risks remain active and 2Q22 will still be penalized by macroeconomic factors when compared with March22 run-rate

Notwithstanding a difficult environment, increasing execution risk, we remain committed to achieving FV22 EBIT within €65-75m

CTT

Correios de Portugal, S.A. Investor Relations

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Contacts: Phone: +351 210 471 087 E-mail: investors@ctt.pt

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