CTT-Correios de Portugal

Investor Presentation • Aug 5, 2021

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Results Presentation

Cit Committed to deliver

5 August 2021

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 half 2021 results. 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.

City Committed to deliver

Key takeaways: another transformational quarter

Solid revenue growth and improved profitability on the back of prior investments and turnaround initiatives implemented in 2019 and 2020

Investment in digital transformation and e-commerce enabling ecosystem to drive continued growth, namely in Express & Parcels in Portugal

Spain drives growth in Express & Parcels, having increased its weight to 45% of segment revenues in 1H21 (+8.0 p.p.y.o.y), while reaching breakeven of EBITDA and recurring EBIT in 2Q21

Recent partnerships and acquisitions in BPO space strengthen CTT's service offering for the corporate and SME seqments

Commercial initiatives targeted at improving customer experience, drive cross selling and distribution of financial products

Banco CTT is delivering profitable growth while offering balance sheet optimization optionality

CTT commits to attain the sustainable development goals of the United Nations, in the context of UN Global Compact

Accelerating revenue growth, driven by Express & Parcels

Revenues € million; % change vs. prior year

Express & Parcels	Mail & other 1	Financial Services & Retail	Banco Citi
2021 1H21 €125.8m €62.4m +47.8% +30.5%	2021 1H21 €109.0m €217.6m +15.9% +6.6%	2Q21 1H21 €11.6m €23.7m +10.3% +36.1%	2021 1H21 €24.5m €45.7m +29.5% +19.0%

Revenue growth and cost control catalyzing EBIT expansion

1 Excluding Specific items; 2 Including Central Structure.

7

Express & Parcels Portugal: CTT is acting as the shaper for e-commerce growth

	E-commerce offer
Value	C	uuuu	A	1	ನ್ನ		t
Chain	Marketing / Advertising	Online sales	Payments	Logistics	Dispatch	Reception	Returns
	Online and physical marketing		payshop Physical Digital		Modular E&P offer	Pick-up & Drop-off points	Easy return solutions
Solutions		doll.pt		Traditional logistics	Partnerships uber o-x Shopkit
	campaigns Partnership	Online Shops creation	Payment References for		Same-day		Traditional logistics
	Omnicom	cit Comércio Local	e-commerce: new API now ive,	E-fulfillment	delivery ctt now	Parcel lockers	E-fulfillment

Express & Parcels Portugal: e-commerce is growing fast and poised for further growth

Source-Eurostat - May 2021; IMRE-commerce market research; 3 CTT E-commerce baromaire performed to 40 major e-selers in Portugal

Express & Parcels Portugal: consistent growth leveraged by e-commerce

Express & Parcels Portugal -CEP Volumes

million items; % change vs. prior year

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

...resulting in solid year-on-year revenue growth in Portugal.

Volumes have been growing consistently ...

Express & Parcels Spain: turnaround driven by market share gains, scale and operational efficiency, resulting in sustained growth and EBITDA breakeven in the quarter

l. Growth

· Capture and increase of share of wallet of large global e-tailers

II. Efficiency

• · Shift from franchise model to own operations in B2C resulted in improved quality (+13.9 p.p. improvement since 2Q20), lower last-mile costs and higher operational leverage
• · Investment in new sorters between Aug20 and Jan21, building capacity and enabling efficiency; 4 new sorting centers and expansion of Madrid one planned until 1Q22
• · Dynamic routing resulting in lower delivery costs per item

Express & Parcels Spain: enabling growth while focusing on quality of service and profitability

Creating room for growth

Express & Parcels Spain: commercial strategy aims at a balanced growth

Large B2C customers

· Consistent improvement in quality of service and investment in capacity resulted in gains of scale through the signing of large e-tailers

Global large e-tailers volumes

Strong mix effect resulting in higher-value mail and comparison effects driving growth

4 Higher-value mail includes registered and it it it it is a mail includes ordinary, prority, green andeditorial mail.

Acquisition of NewSpring Services will reinforce CTT's business services solutions beyond mail

Company overview

• · Business services company operating in BPO and contact center outsourcinq
• · Client portfolio characterized by the presence of large Portuguese firms, particularly in the financial services and insurance industries

Transaction Update

On 23/07/2021, the Competition Authority (AdC) published its decision of non-opposition to the acquisition, considering that the transaction does not arise significant barriers to competition in the identified relevant markets

Key figures

BPO clients

ം Outbound and inbound Contact Center, including customer service, surveys, commercial CC clients engagements and loan collection and recovery

Acquisition rationale

Contribute to CTT's business growth objectives and diversification

Strengthen skills and capacities in BPO and other support services aiming to consolidate a growth platform for corporate solutions, reducing CTT's dependency on partnerships

Allow further optimization within CTT, reducing external supplies by internalizing some activities (c.10% savings on applicable outsourced services)

Financial Services & Retail underpinned by commercial proactivity while benefitting from the opening of the economy and the increased savings propensity

Public debt placements

€ million; % change vs. prior year

Average ticket 1

Financial Services

Revenues increased on the back of a more dynamic commercial approach of public debt placement

Retail products & services

Higher commercial proactivity, . driving monetization of customer visits to post offices and revenue growth

Banco CTT continues to grow in retail seqment credit, with the introduction of the credit card business of Sonae as an additional growth lever, and in savings solutions

Banco CTT - business volumes evolution

€ million except otherwise indicated

Consumer lending core business of Banco CTT with robust performance

• · Cyclical recovery of the market post-pandemic on its way
• Continued market share gains on the back of: o
  • Close relationship with dealerships providing flexible solutions
  • Strengthening the technology axis with agility in decision-making

• Cyclical recovery of the market post-pandemic on its way
• · First quarter of partnership marked by: (i) strong ramp-up of credit volume to €186m at Jun-21, on track to >€300m in first 12 months; and (ii) deepened operational relationship between partners
• · Further growth expected beyond initial onboarding of clients 2
• · Capital needs funded by sale of sovereign portfolios (+€14.4m capital gains)

4 Source: Bark of Portugal; On the back of organic smultiple franchises and increased stock average duration (e.g.higher share of installment profile).

Alignment with the UN Sustainable Development Goals т

CTT bases its approach to sustainability on 10 of the Principles of the United Nations Global Compact

Initiatives to be implemented mainly regarding four ESG areas:

• Human rights
• Labor
• · Environment
• · Anti-corruption

National Sustainability Award

Honourable mention awarded to the project "A Tree for the Forest"

+100 thousand native trees planted

Eco reusable packages

Circular economy

Ongoing pilot project for e-commerce orders aimed at the business segment

Green deliveries

100% Eco delivery with electric vehicles

Scaling up, aimed at reducing the carbon emissions in the main urban centers of Portugal

Teleconsultations in post offices

Innovative and inclusive initiative

Pilot project in urban and rural areas in partnership with CUF, a major healthcare operator

c. cttt Financials I ssa entrega é total 3 H eco Clipton Class of Portuges on

cit Committed to deliver

Improved profitability due to Express & Parcels growth and operational leverage

Key financial indicators

€ million; % change vs. prior vear

		Quarter			Half
	2Q20	2Q21	y.o.y	1H20	1H21	y.o.y
Revenues 1	169.3	207.5	22.6%	349.2	412.8	18.2%
Operating costs 2	157.3	179.2	13.9%	313.5	355.5	13.4%
EBITDA ²	11.9	28.3	136.6%	35.7	57.3	60.6%
Depreciation & amortization 3	15.6	14.6	-6.2%	30.0	28.6	-4.7%
Recurring EBIT +	-3.6	13.6	>>	5.7	28.7
Specific items	0.8	-1.5	<<	0.8	-2.3
EBIT	-4.4	15.1	>>	4.9	31.0
Financial result	-2.8	-2.7	3.9%	-5.9	-5.4	9.3%
Tax	-1.6	3.9	>>	0.9	8.4
Net profit attributable to equity holders	-5.7	8.5	>>	-2.0	17.2
Free cash flow	-9.2	21.4	>>	-0.6	31.3

-ExcludingSpecificiems; ExcludingSpecificitems, depreciation & amorization were positively impacted in 1H2L by the revision of the usefulfreof someases.

Express & Parcels growth and Mail recovery foster strong revenues expansion

Revenues 1 € million; % change vs. prior year

Revenues 1 breakdown

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

21

1 Excluding Specific items; 2 Including Central Structure.

Express & Parcels growth and Mail recovery, also push operating costs

Operating costs € million; % change vs. prior year +12.1% +1.3 193.8 14.6 +1.2 +12.2 179.2 +6.2 15.6 172.9 157.3 △E&P 2Q20 2Q21 2Q20 2Q20 2Q21 Op. costs D&A Op.costs & other costs CTT costs Retail Op.costs D&A Op. costs (EBITDA) (Rec. costs 2 costs (Rec. (EBITDA) EBIT) 1 EBIT) 1

Operating costs (Rec. EBIT) 4 breakdown € million; % change vs. prior year; % of total

In 2Q21:

• · Staff costs increased in Mail & other (+3.4m) and Banco CTT(+1.5m) and decreased by €0.2min Financial Services & Retail
• · ES&S costs grew by £2.0m. main\r as a result of a £1.7m increase in transport and distribution costs and enternal dues to foreign operators
• · Impairments and provisions decreased by €4.8m, promoted by decreases in Banco CTT (-€2.3m), Mall & other (-£1.0m)

Esculding Specificiens in 2021 and the perious versions (ERTD) include in paintering and the eases coreed with in a maint of the leases correct of the least concerner process 2 Including Central Structure.

Recurring EBIT marginimprovement of +8.7 p.p. in 2Q21 and +5.3 p.p. in 1H21 supported by Express & Parcels, Mail and Banco CTT

Recurring EBIT 1

1 Excluding Specific items; 2 Including Central Structure

Adjusted cash increased by c.€9m in 1H21

1H21 Cashflow

€ million; impact on cash flow vs. prior year

30 June 2021 Net financial debt 2 € million

(+) Cash & cash equivalents	654.7
(-) Net Financial Services & other payables 3	185.4
(-) Banco CTT liabilities, net 3	306.0
(-) Other 4	19.3
(=) Adjusted cash	144.0
(-) Financial debt	89.8
(=) Net cash position	54.2
(-) Lease liabilities (IFRS 16)	115.9
Net financial debt 4	61.7

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Citi

Outlook: benefiting from repositioning to grab further growth

Higher contribution from both Express & Parcels and Banco CTT will keep fueling revenues growth, translating into improving profitability

Continued acceleration of the digital initiatives will further strengthen CTT's competitive position

The COVID-19-related uncertainty remains present

CTT expects to achieve above €60m in EBIT in FY21

Progress on the concession process allows for reaffirmed confidence in the formalization of a sustainable new contract within the term of the current extension

cit Committed to deliver

Key Balance sheet details

	Net employee benefits
103.6	(+) Employee benefits 1	279.9
189.1	(-) Employee benefits tax credit	77.9
292.8 (=) Fixed tangible assets		202.0
	1 Of which €271m related to healthcare
	Financial debt
115.0	(+) Bank loans	89.8
29.0	115.9 (+) Lease liabilities
144.0	(=) Financial debt	205.7
	Rights of use grew by €1.1m vs. Dec-20 (+1.0%)	(=) Net employee benefits

Exceptional growth of parcels volumes and revenues provides a considerable boost to profitability

Revenues Consolidated view; € million; % change vs. prior year		EBITDA 1, 2 € million			Recurring EBIT 2 € million
Portugal	€67.1m (+29.6%)	eliminations		+60.7%	9.6			+138.5% 6.9
Parcels	€58.6m (+41.1%)	Portugal &		6.0
Cargo	€4.6m (-13.6%)		3.9			1.2	2.9
Banking network	€2.3m (-31.5%)
Logistics	€1.2m (+2.5%)			>>
Other	€0.4m (+2.3%)				1.3			+75.7%
Spain	€57.2m (+79.5%)	Spain
Mozambique	€1.5m (+4.9%)							-1.5
Total	€125.8m (+47.8%)		-3.6	-4.6		-4.8	-6.1
Volumes by region (mitems)			1H19	1H20	1H21	1H19	1H20	1H21
Metric	Total			Portugal			Spain
1H21	36.6			16.2	15.5 (+38.3%)		20.4
vs. 1H20	+54.4%			excludingcargo +30.6%		+80.7%

² Excluding Specificitems, depreciation & amortization; 2 Individual company views (not consolidated),

Banco CTT is benefitting from significant operational leverage, as the fixed-cost infrastructure is largely in place

1 Excluding Specific items, depreciation & amortization.

Banco CTT cost of risk remains low while capital and liquidity are ample

-Excludesdepsits from intragram of the concept befault which came interest in and recurring own of mon-performing experiencing experising experising experising experising ex

Mail profitability recovering through the mix effect of value-added mail increased weight on total mail in 1H21

1 Including Central Structure; 2 Excluding Specific items, depreciation & amortization.

Financial Services & Retail comparison impacted by full lockdown of 2Q20

Financial Services volumes by type

Metric	Savings flows (€bn)	Placements	Redemptions	Money orders (m ops.)
1H21	2.8	2.3	0.5	7.1
vs. 1H20	21.1%	21.1%	21.5%	-7.7%

1 Excluding Specificitems, depreciation & amortization.

Consolidated Income statement

Income statement € million	Reported		With Banco CTT under equity method
	1H20	1H21	1H20	1H21
Revenues	349.2	412.8	318.4	375.2
Operating costs	313.5	355.5	281.8	322.3
of which Impairments & provisions	11.1	5.8	3.7	0.8
EBITDA	35.7	57.3	36.6	52.9
Depreciation & amortization	30.0	28.6	27.3	25.2
of which IFRS 16 impact	11.4	13.1	11.0	12.7
Recurring EBIT	5.7	28.7	9.3	27.7
Specific items	0.8	-2.3	0.8	9.7
EBIT	4.9	31.0	8.5	18.0
Net financial income / (costs)	-4.7	-4.2	-4.7	-4.2
of which IFRS 16 impact	-1.6	-1.5	-1.6	-1.5
Associated companies - gains / (losses)	-1.2	-1.1	-4.1	8.8
Earnings before taxes	-1.0	25.7	-0.3	22.5
Net profit attributable to equity holders	-2.0	17.2	-1.9	17.2

Consolidated Balance sheet

Balance sheet € million	Reported		With Banco CTT under equity method
	31-Dec-20	30-Jun-21	31-Dec-20	30-Jun-21
Non-current assets	1,984.3	1,834.3	638.8	657.2
Current assets	910.6	1,262.3	484.0	454.1
Assets	2,894.9	3,096.6	1,122.8	1,111.4
Equity	150.3	148.8	150.3	148.8
Liabilities	2,744.6	2,947.8	972.5	962.5
Non-current liabilities	493.4	480.6	444.0	441.9
Current liabilities	2,251.2	2,467.2	528.5	520.6
Equity and Liabilities	2,894.9	3,096.6	1,122.8	1,111.4
Net financial debt 1	71.4	61.7	153.9	174.8

Consolidated Cash flow statement

Cash flow	Reported			With Banco CTT under equity method
€ million	1H20	1 - 21	△ 21/20	1H20	1H21	△ 21 / 20
EBITDA	35.7	57.3	+21.6	36.6	52.9	+16.3
Non-cash items	-2.3	-9.3	-7.0	-9.3	-13.9	-4.6
Specific items affecting EBITDA	-0.8	2.3	+3.1	-0.8	-9.7	-8.9
Capex	-10.9	-11.7	-0.8	-9.3	-10.2	-1.0
Change in working capital	-17.8	-0.7	+17.1	-14.3	-1.6	+12.8
Operating cash flow	3.9	37.8	+33.9	2.9	17.5	+14.6
Tax	0.6	0.0	-0.6	1.0	0.0	-0.9
Employee benefits	-5.1	-6.6	-1.5	-5.1	-6.6	-1.5
Free cash flow	-0.6	31.3	+31.9	-1.2	11.0	+12.1
Debt (principal + interest)	-0.7	-2.8	-2.1	-0.7	-2.8	-2.1
Dividends	0.0	-12.8	-12.8	0.0	-12.8	-12.8
Acquisition of own shares	0.0	-6.4	-6.4	0.0	-6.4	-6.4
Financial investments	0.0	-0.8	-0.8	0.0	-10.8	-10.8
Net change in adjusted cash	-1.3	+8.6	+9.9	-1.9	-21.8	-19.8
Change in liabilities FS & other & Banco CTT (net) 1	-34.9	128.0	+162.9	-49.8	-50.2	-0.4
Change in other 2	-10.2	-0.1	+10.2	-0.0	-0.0	+0.0
Net change in cash	-46.4	136.6	+183.0	-51.7	-72.0	-20.3

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Specific items with a positive impact on the 1H21 P&L

Specific items € million

	Reported
	1H20	1H21
Recurring EBIT	5.7	28.7
Specific items	0.8	-2.3	€8.2m restructuring charge, of which
Revenues	-0.6	0.0	€8.0m is a non-cash provision for 118 suspension agreements of employee
Staff costs	0.1	8.2	contracts
ES&S & other op. costs & other gains	1.3	-10.5	Net gain of €10.5m that was primarily
EBIT	4.9	31.0	related to a €14.4m capital gain booked in connection to the sale of public debt
			securities to optimize Banco CTT balance

sheet against a backdrop of the rollout of the partnership with Sonae and expenses of €3.9m related with an initial IFRS9 adjustment with the acquisition of the credit stock of Cartão Universo, COVID-19 related costs and other one-off projects

Citi Correios de Portugal, S.A. Investor Relations

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

ctt.pt

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