CTT-Correios de Portugal

Investor Presentation • May 6, 2021

1 0 24 Results Presentation

City Committed to deliver

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 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 applicablelaw, CTT does not undertake any oblicly update or revise any of the information containedin this document. Consequently, the Company does not assume liability for this document if 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 placedon, 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 neqliqence 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 incorporationinto 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 document are invited and advised to consult the public information disclosed by CTT on its website (www.cttpt) as well as on the Portuguese Securities Exchange 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 reqard to any data presented in this document. By attending the meeting where this presentationismade andreading this document, you agree to be bound by the foregoingrestrictions.

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-lookingstatements includedherein involve known 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, marketdevelopments, investment opportunities andregulatory conditions).

Although CTT believes that the assumptions beyond such forward-looking statements are reasonable when made, any thirdparties 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 neither represent a commitment regarding the models andplans 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-lookingstatements 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, whetheras a result of new information, future events or otherwise.

City Committed to deliver

Record quarterly parcels performance boosts group revenues and profits

Significant revenues growth, driven by parcels, leads to profitability expansion

Express & Parcels		Banco Citi		Mail & other 1		Financial Services & Retail
Revenues €63.4m (+70.1%)	Recurring EBIT €2.5m (+167.4%)	Revenues €21.2m (+8.7%)	Recurring EBIT €1.4m (+26.6%)	Revenues €108.6m (-1.4%)	Recurring EBIT €4.9m (+5.2%)	Revenues €12.1m (-6.7%)	Recurring EBIT €6.2m (-14.8%)
	tacifos24h			Correio Verde		3
CTT Group		Revenues 2 € 205.3m (+ 14.1%)		EBITDA 23 € 29.1m (+ 22.3%)		RecurringEBIT2 €15.0m (+62.2%)

Incluing entral Soctives in 2022, the 37 Declarit heir consimparis and health in the column in the column in the contributed by the content of the medition of the medition depreciation & amortization and Specificitems.

A quarter of continued investment and expansion of CTT's products and services offer

• A Governmental working group has been created to carry out an analysis of the Postal Act and of the Universal Service requirements for the new concession contract
• CTT elected as a Trusted Brand by the Portuguese people, achieving first place recognition in Mail and Logistics services

Partnership with Sonae Financial Services for Banco CTT to become the lender for the Cartão Universo credit card. The credit book is expected to grow to >€300m within the next 12 months, funded by Banco CTT's available liquidity and own funds (including reallocation of capital)

• Reopening of 29 of the 33 previously closed post offices, reinforcing the proximity to the populations and the capillarity of the retail network
• CTT Savings Line launched, a new direct contact channel for savings solutions support and service

Os melhores queijos da Serra da Estrela na sua mesa!

• In partnership with the Institute of Records and Notary, 350k newly issued citizen cards have already been delivered to the homes of the Portuguese people
• Dott marketplace reached 270k registered users (+35% vs. Dec-20), 1.6k vendors, 4.5m products available for sale and GMV growth of 122% vs. 1Q20

Banco CTT has established an important long-term partnership with Sonae Financial Services

Banco CTT has become the lender for the Cartão Universo credit book

Cartão Universo overview:

More than 850k clients and market share higher than 13%

Close to 1 billion transactions p.a.

Projected relevant returns, given seasoned portfolio, with 5 years of historical data

Credit book of c. €150m as of April-21, expected to grow to >€300m during the next 12 months

Cartão Universo retail brands:

CONTINENTE

Record performance by Express & Parcels, as CTT's investments in e-commerce infrastructure continue to meet strong demand, also spurred by the lockdown restrictions

Express & Parcels volumes

million items; % change vs. prior year

• Express & Parcels volumes in Portugal stabilized at a very high plateau (matching the seasonally-strong 4th quarter), as the country remained in lockdown throughoutthe 1st quarter 2021
• · CTT's efforts as the enabler of e-commerce contribute to these results - contracts with >2,000 SMEs to launch online shops of which >700 are already operational; also, Comércio Local App now already adopted by 19 municipality partners, etc.
• The capture of new e-tailer clients in 2020 continues to provide a strong boost to parcels volumes, with Spain registering another record quarter in volumes
• Own distribution (vs. franchisee) in Spain now stands at 83% vs. 47% in 1Q20, allowing for better quality of service and alignment with clients' needs

Banco CTT activity remained resilient, despite the lockdown restrictions impact on the points of sale

Banco CTT S.A. - business volumes evolution

€ million except otherwise indicated

1 Net of impairments; 2 Million operations.

Strong mix and pricing effect in higher-value mail cancelled almost entirely the impact of the high volumes decline, exacerbated by the lockdown

Solid performance by Financial Services & Retail, considering the challenqing environment for high-street retail, as a result of the restrictions imposed by the state of emergency

Public debt placements € million; % change vs. prior year

• Year-on-year decline stems from the fact that Jan-20 public debt placements benefited from c.€1.5bn maturing stock, which compares to €385m in Jan-21. Placements in February and March 2021 grew €207.4m (32.2%) vs. the same period last year, benefiting from the launch of the new direct customer support channel for savings solutions

Retail services and products

€ million; % change vs. prior year

· Retail revenues grew to €3.6m in 1Q21 (+37.1%), benefiting from the introduction of new lottery products (scratchcards) in the CTT retail network

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cit Committed to deliver

The robust revenues growth led to substantial improvement in operational leverage and meaningful increases in all profitability metrics

Key financial indicators

€ million; % change vs. prior year

	1019	1Q20	1Q21	A%19/21	A%20/21
Revenues 1	176.9	179.9	205.3	16.1%	14.1%
Operating costs ²	149.3	156.2	176.3	18.0%	12.9%
EBITDA -	27.5	23.7	29.1	5.6%	22.3%
Depreciation & amortization 3	13.3	14.5	14.0	5.4%	-3.2%
Recurring EBIT -	14.2	9.3	15.0	5.7%	62.2%
Specific items	5.6	0.0	-0.8	-115.2%	<<
EBIT	8.7	9.3	15.9	83.1%	71.5%
Tax	2.9	2.5	4.5	55.4%	82.2%
Net profit attributable to equity holders	3.7	3.7	8.7	135.3%	136.3%
Free cash flow	4.3	8.6	9.9	130.5%	15.4%

Elections for thers, Eching Specialine and tamilies of the one of concesses, baction and soft the historial electrical effective revease. The scases in engate his cases in in depreciation & amortization in 1Q21.

Extraordinary performance by Express & Parcels, benefiting also from the lockdown impacts, drove strong revenues expansion

Revenues 1

€ million; % change vs. prior year

Revenues 1 breakdown

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

Operating costs increased mostly in parcels, as a direct result of the substantial growth in volumes

• · Staff costs increased in Express & Parcels (+E1.3m) and Banco CTT (+€0.6m) and decreased by €1.0min the other business units
• · ES&S costs gew by €17.3m, mainy as a result of a €1.3.9m increase intransport and distribution order work costs in Express & Parces
• · Other costs increased by €2.3m, mainly due to the costs of goods sold of the new retail products (lottery and merchandising and banking commissions

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EBIT margin increased as a result of the expanding operational leverage in Express & Parcels and Banco CTT

Recurring EBIT 1

1 Excluding Specificitems; 2 Including Central Structure. 3 Excluding Specificitems, depreciation & amortization;

10 Q21, CTT redefined by of some as ets, based on and station are age of theseases. The impact of this change was €2.0m decrease in decimit (22.

Own cash increased by c.€10m in the quarter

1Q21 Cashflow

€ million; impact on cash flow vs. prior year

31 March 2021 Net financial debt 2 € million

(+) Cash & cash equivalents	558.6
(-) Net Financial Services & other payables	185.5
(-) Banco CTT liabilities, net 3	209.3
(-) Other 4	18.6
(=) Own cash	145.1
(-) Financial debt	91.9
(=) Net cash position	53.2
(-) Lease liabilities (IFRS 16)	116.7
Net financial debt 2	63.4

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Repositioning the business for 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 our competitive position

The COVID-19-related uncertainty is gradually fading away

Given the above-mentioned dynamics, CTT now expects to achieve around €60m in EBIT in FY21

cit Committed to deliver

Key Balance sheet detail

Fixed tangible assets		Net employee benefits
104.2 (+) Rights of use (leases) 191.5 (+) Other fixed tangible assets 295.7 (=) Fixed tangible assets		(+) Employee benefits1 (-) Employee benefits tax credit (=) Net employee benefits	281.8 78.4 203.5
Rights of use grew by €1.6m vs. Dec-20 (+1.6%)		1 Of which €272m related to healthcare
Financial debt (+) Bank loans	91.9	Net FS payables (+) Financial Services payables	193.2
(+) Lease liabilities	116.7	(-)FS receivables	9.1
(=) Financial debt	208.5	(=) Net FS payables	184.1

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			EBIT 2 € million
Portugal	€35.1m (+43.8%)	eliminations	>>	5.5		» 4.0
Parcels	€30.6m (+61.8%)	Portugal &
Cargo	€2.5m (-9.9%)		1.7
Banking network	€1.2m (-32.7%)				0.1
Logistics	€0.6m (-15.4%)			+94.1%
Other	€0.3m (-3.9%)					+55.2%
Spain	€27.6m (+127.8%)	Spain		-0.2
Mozambique	€0.7m (-5.6%)					-1.7
Total	€63.4m (+70.1%)		-3.3		-3.9
Volumes by region (mitems)			1Q20	1Q21	1Q20	1Q21
Metric	Total	Portugal		Spain		Mozambique
1Q21	18.2	8:5	8.0 (+62.3%)	9.7		0.01
vs. 1Q20	+87.2%	+50.9%	excluding cargo	+137.2%		-5.0%

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

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

1 Excluding Specificitems, depreciation & amortization.

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

· Excludes deposis fromintragrup company of efaultwhith cament effectin and effectin ann-recuring grown of on on-performing exposures in Q2.1

Mail profitability continues to be impaired by the atypical volumes decline, exacerbated by the lockdown measures

1 Including Central Structure;

2 Excluding Specificitems, depreciation & amortization.

Financial Services & Retail comparison impacted by the Jan-20 public debt placements and the lockdown effects

Financial Services volumes by type

Metric	Savings flows (€bn)	Placements	Redemptions	Money orders (m ops.)
1Q21	1.4	1.2 - of which 1.2 (-12.0%)	0.2	3.7
vs. 1Q20	-11.4%	-12.1%	-6.6%	-5.0%

1 ExcludingSpecificitems, depreciation & amortization.

Consolidated Income statement

Income statement € million	Reported		With Banco CTT under equity method
	1Q20	1Q21	1Q20	1Q21
Revenues	179.9	205.3	164.7	188.3
Operating costs	156.2	176.3	142.5	161.7
of which Impairments & provisions	2.8	2.4	1.2	0.9
EBITDA	23.7	29.1	22.2	26.6
Depreciation & amortization	14.5	14.0	13.2	12.2
of which IFRS 16 impact	5.3	6.4	5.1	6.2
Recurring EBIT	ਹੈ.ਤੇ	15.0	9.1	14.4
Specific items	0.0	-0.8	0.0	1.0
EBIT	9.3	15.9	9.0	13.4
Net financial income / (costs)	-2.5	-2.1	-2.5	-2.1
of which IFRS 16 impact	-0.8	-0.8	-0.8	-0.8
Associated companies - gains / (losses)	-0.6	-0.5	-0.4	1.3
Earnings before taxes	6.2	13.3	6.2	12.6
Net profit attributable to equity holders	3.7	8.7	3.8	8.7

Consolidated Balance sheet

Balance sheet € million	Reported		With Banco CTT under equity method
	31-Dec-20	31-Mar-21	31-Dec-20	31-Mar-21
Non-current assets	1,984.3	1,988.5	638.8	649.3
Current assets	910.6	978.1	484.0	445.0
Assets	2,894.9	2,966.6	1,122.8	1,094.2
Equity	150.3	159.0	150.3	159.1
Liabilities	2,744.6	2,807.6	972.5	935.2
Non-current liabilities	493.4	488.3	444.0	444.4
Current liabilities	2,251.2	2,319.3	528.5	490.8
Equity and Liabilities	2,894.9	2,966.6	1,122.8	1,094.2
Net financial debt 1	71.4	63.4	153.9	159.4

Consolidated Cash flow statement

Cash flow	Reported			With Banco CTT under equity method
€ million	1Q20	1Q21	△ 21/ 20	1Q20	1Q21	△ 21 / 20
EBITDA	23.7	29.1	+5.3	22.2	26.6	+4.4
Non-cash items	-3.5	-5.0	-15	-49	-6.3	-1.4
Specific items affecting EBITDA	-0.0	0.8	+0.9	-0.0	-1.0	-1.0
Capex	-5.6	-5.9	-0.3	-5.1	-5.1	0.0
Change in working capital	-2.8	-6.1	-3.3	1.8	-4.8	-6.6
Operating cash flow	11.8	12.8	+1.0	14.1	9.4	-4.6
Tax	-0.0	0.2	+0.3	0.3	0.2	-0.1
Employee benefits	-3.2	-3.1	+0.0	-3.2	-3.1	+0.0
Free cash flow	8.6	did	+1.3	11.2	6.6	-4.7
Debt (principal + interest)	-0.2	-0.3	-0.1	-0.2	-0.3	-0.1
Dividends	0.0	0.0	0.0	0.0	0.0	0.0
Financial investments & other	0.0	0.0	0.0	0.0	-10.0	-10.0
Net change in own cash	8.4	9.7	+1.3	11.0	-3.7	-14.7
Change in liabilities FS & other & Banco CTT (net) 1	-216.7	31.4	+248.1	-131.4	-50.2	+81.2
Change in other 2	64.2	-0.7	-65.0	-0.0	0.0	+0.0
Net change in cash	-144.0	40.4	+184.4	-120.4	-53.8	+66.5

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Specific items with a positive impact on the 1Q21 P&L

Specific items

€ million

		Reported
	1Q20	1Q21
Recurring EBIT	9.3	15.0		Capital gain generated by the sale of
Specific items	0.0	-0.8		public debt securities by Banco CTT to fund the capital requirements for the
Revenues	-0.6	-2.2		credit card partnership with Sonae Financial Services
Staff costs	0.0	0.1		€1.3m of ES&S & other operating costs,
ES&S & other op. costs	0.6	1.3		of which €0.3m related to Sonae Financial Services partnership, €0.4m of strategic
EBIT	9.3	15.9		studies and €0.3m related to the COVID-19 pandemic

Citit

Correios de Portugal, S.A. Investor Relations

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

ctt.pt

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