CTT-Correios de Portugal

Regulatory Filings • Nov 3, 2021

CTT – Correios de Portugal, S.A. Public Company 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, 3 November 2021

Material information

CTT – Correios de Portugal, S.A. ("CTT" or "Company") hereby informs that the Portuguese Government has approved the Resolution of the Council of Ministers no. 144/2021 of 23 September 2021 ("RCM"), published today in the Official Gazette, which determines the provision of the universal postal service ("SPU") by a sole provider throughout the whole national territory, by means of the signature of a new, 7-year term concession agreement.

The RCM, considering that "CTT, S.A. is the only company owning a network with the indispensable capillarity to fulfill all, or even a relevant part of, the obligations of the universal service with the required quality standards and the required proximity to the population, namely the people living in low density areas in the interior of the country and autonomous regions", determines that the procedure includes an invitation to CTT to submit a proposal.

The Resolution published today paves the way for the definition of a new legal and contractual framework of the SPU concession, particularly in terms of density, quality and pricing.

With regard to density, the RCM:

stipulates "that the criteria that define the minimum threshold for the density of the postal network remain under the jurisdiction of ANACOM, notwithstanding the minimum threshold should be the existence of one post office per municipality".

In terms of quality, the RCM:

• advocates "establishing high quality of service standards, aligned with the European Union best practices";
• determines that it will be up to the Government, upon ANACOM's proposal, to set the quality of service parameters and performance targets associated with the provision of the universal postal service.

As far as pricing of the SPU is concerned, the RCM:

calls for "enhanced sensitivity of the pricing to be implemented by the concessionaire to the evolution of the postal activity", as pricing is "the basis for the financial balance of the concession"; and

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

determines that prices will be approved by the Government upon proposal of the concessionaire and after analysis by ANACOM, under the terms of the criteria to be agreed in a multi-year convention to be signed between the concessionaire, ANACOM and the Consumer Directorate-General.

Within 5 working days, an evaluation committee will be appointed, with the assignment of preparing the tender documents as well as analyzing the proposal to be presented by CTT.

Therefore, it is believed that the conditions are met for a framework that balances more adequately the continuity and sustainability of the fulfilment of universal postal service obligations.

The process outlined in this resolution is intended to allow the new concession agreement to come into force in January 2022, in the framework of the current governmental situation.

This information to the market and the general public is made under the terms and for the purposes of article 248-A 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