Sonaecom SGPS

Earnings Release • Mar 17, 2021

STHUACCOM

RESULTS ANNOUNCEMENT 2020

The consolidated financial in this report is bosed on unaudited financial statements, pepared in the with hhe with with with with Union.

1. Main Highlights

Services revenues increasing 6.9% y.o.y., partially offsetting the decrease on Product sales

Negative evolution of Total EBITDA explained by non-recurrent itens and equity results from ZOPT

NOS recording the best quarter of the year with Telco revenues returning to growth

Technology area with solid growth and profitability improvements at cubersecurity companies

Strong Indirect results reflecting relevant valuation increase in minority stakes

Net Income of 60.1 million euros, increasing 15.3% y.o.y

と、Sonaecom Consolidated Results

Introductory notes:

COVID 19

2020 was marked by COVID 19 pandemic emergence in Europe, the subsequent formal national lock-down declared on 18th March and the consequent difficult and challenging economic environment. People and companies were forced to adapt to a new reality, transforming all work and social relations.

Since the beginning, the Board of Directors has followed in detail and with great concern all the pandemic developments, following closely the position of the competent international entities, namely the World Health Organization and the European Centre for Disease Prevention and Control, as well as the Portuguese Directorate-General of Health.

Aligned with the Group's Risk Management Policies different scenarios and contingency plans with correspondent mitigation actions were designed and actorss all companies and departments. This strategic thought allowed to keep our employees protected and to face this turmoil period with the less loss of value.

The financial and operational impacts have been in different segments and, so far, the Group's business operations have been affected in very different levels:

• The technology area did not feel significant impacts from this situation on its 2020 results, except a slowdown on Professional Services revenues, on Technology Reselling (either due to a reduction in demand or a drop in supply) and specially on the rhythm of commercial activity for new businesses.
• · At NOS, the main operating impacts of the pandemic in 2020 revenues were felt namely in: i) Cinemas and Audiovisuals: reduction on cinemas attendance, driven by the complete dosure of NOS theatres on 16 March until July 2 and the limitation schedules imposed during the last quarter of the year for shopping centers included and the continued and indefinite postponement of major movies launches, only partially compensated by the rents reduction; ii) Roaming and international calls: traffic and revenues impacted by restrictional travel; ii) Premium sport channels: reduction in revenues with subscriptions being offered during the national championship suspension; iv) Mobile Data: the quarantine and isolation situations imply an increase of wireless usage versus mobile data; and iv) Equipment: fall in sales of all non-essential retail activity namely in shopping centres and to general restrictions to circulation.
• · Publico's activity was impacted, namely in and in advertising revenues and offline newspaper sales, with the close of the majority of points of sale during 2Q20.

The approval of the first COVID-19 vaccines in late 2020 brought back some optimism regarding the end of this health crisis, which could allow for a faster economic recovery. However, the resurgence of new waves of infection in different geographical ocations at the end of the previous year associated with the discovery of new vith a higher transmission rate, which are more aggin

the pressure on healthcare systems, particularly on intensive Care Units, leading to the reinstatement of restrictions and general lockdowns for populations around the globe.

Overall, the macroeconomic context remains uncertain on the epidemiological evolution and control, on governmental intervention to comply with vaccination plans, as well as on the support provided to the overall economy.

However, given the company's capital structure, with a significant amount in cash and a low amount of remunerated debt, no material changes in the Company's liquidity are expected. Furthermore, we will continue to implement all measures appropriate to minimize their impacts, in line with the recommendation of the best interest of all our stakeholders.

Restatement

Sonae IM reassed the accounting of its minority stakes. Given its active investor approach, and the existence in the majority of those stakes, Sonae IM applied the exemption provided by JAS28, and elected to messments at fair value through profit or loss in accordance with IFRS9.

Until 3Q20, the referred investments were recorded at fair comprehensive income (equity) and the described reclassification generated a positive impact of 0.6 million euros respectively in 2019 and 2020 results. The figures of 2019 and previous quarters of 2020 presented in this document were restated to include this reclassification.

Telecommunications area, which includes a 50% stake in ZDPT - consolidated through the equity method - which owns 52.15% stake in NDS, despite being strongly impacted by CDVD 19 pandemic, namely with a significant reduction of revenues from roaming and from Cinema & Audiovisuals business, continued to demonstrate a marked resilience its core telecom operations.

The pandemic has accelerated the take-up of data and IT related services are seeking more sophisticated solutions which help to compensate the negative impacts of the pandemic and resulted in a strong performance from the B2B telco segment.

Regarding the Cinema and Audiovisuals business, the complete closure of NDS theatres between March and of circulation restriction rules affecting major shopping centers towards the end of the year, coupled with the continued postponement of major movie launches, inevitably led to very weak Cinema ticket sales and lower revenues for this division. The challenges in this sector are an international trend which is set to remain in the near term with nationwide as as from late January, and studios still preferring not to release major titles.

During 2020, in the Technology area the investment activity process slowed down in the year, due to travel bans and event cancellations, but slowly recovered throughout the second half of the year. In total, Sonae M completed 5 new investments during the year, made some follow-on investments in portfolio companies and achieved relevant evolutions in some of its minority series E round raised in Arctic Wolf with an implicit valuation that turns the upward valuation of AVPII fund.

Already in 2021, one of Sonae M's minority indirectly held through Armilar funds, Outsystems, that reached an unicorn valuation back in 2018, announced a 150 million dollars capital raise, co-led by Abdiel Capital and Tiger Global, at an underlaying valuation of 95 billion dollars. Despite being a relatively small transaction, it is a good sign of the company's strong evolution.

Turnover

Consolidated turnover in 2020 reached 129.1 million euros, decreasing 2.5%, when compared to 2019. The relevant growth of services, mainly cybersecurity services, was fully offset by the transactional business of third-party products and the newspaper sales on Media business.

Operating costs

Operating costs amounted to 136.1 million euros, 6.0% below 2019. Employee benefits expenses increased costs decreased 8.4% to 68.3 million euros, mainly driver by the lower cost of goods sold, aligned with the lower level of sales. Other expenses decreased 9.9%, mainly explained by the lower level of Outsourcing costs.

FRITDA

Total EBITDA decreasing from 30.5 to 11.8 million euros, fully expained by the decrease on equity results and non-recurrents itens as Underlying EBITDA presented relevant improvements, specially at Cybersecurity companies.

In 2020, the non-recurrent items stood at negative 9.9 million euros, mainly driven by the gross a result of the redemption of participation units herture Partners II Fund.Despite the loss recorded, this redemption, that generated a gross capital distribution of 21 million euros, represented a value improvement of 37%, when compared in 2018, and increased the cumulative return on Armilar Funds to 2.3x cash on cash. In 2019, the non-recurrent itens stood positive at 11.9 million euros, driven by the capital gain generated by Saphety and WeDo's sale.

The equity results, mostly driven by ZDPT contribution which, in turn, depends on NOS net income evolution euros.

Net results

Sonaecom's EBIT decreased to 2.9 million euros, from 20.3 million in 2019, mainly explained by the lower level of EBITDA.

Sonaecom's earnings before tax (EBT) decreased from 20.3 million to 2.2 million euros, driven by the lower EBIT and financial results.

Indirect results reached 39.3 million euros with 27.7 million euros in 2019, impacted by portfolio fair value adjustments, mainly the upwards revisions at Armilar Venture Funds, Arctic Wolf and Cellwize.

Net results group share stood at 60.1 million euros, above the 52.2 million euros presented in 2019.

Operating CAPEX

Sonaecom's operating CAPEX decreased to 7.6 million euros, reaching 5.9% of turnover, 2.0 p.p. below 2019. Excluding the IFRS 16 impact, operating CAPEX would be 4.0 million euros, 0.8 million euros below 2019.

Capital Structure

The net cash position stood at 215.5 million euros since December 2019. Excluding IFRS 16 impacts, Net cash position stood at 229.8 million below December 2019, mainly driven by 3.4 million euros of net investment cash-out, the negative operating cash-flow and taxes of 3.7 million euros received as capital subscription in a new investment vehicle, the 4.0 million euros of IFRS16 rents payment and the 25.4 million euros of dividends distribution.

2.1 Telecommunications

NOS operating revenues were 1,367.9 million euros in 2020, decreasing 6.2% y.o.y.

EBITDA reached 603.2 million euros, decreasing 5.7% when compared to 2019 and representing a 44.1% EBITDA margin. CAPEX excluding leasings amounted to 384.9 million euros in 2020, an increase of 2.8% y.o.y. As a consequence of EBFDA and CAPEX evolution, EBITDA- CAPEX decreased 17.8%.

At the end of 2020, total net debt including learn contracts (according to IFRS 16) amounted to 1,377.4 million euros. Net Financial Debt/EBITDA after lease payments (last 4 quarters) now stands at 1.5x EBITDA, and with an average maturity of 2.5 years.

NOS published its 2020 results on 10th March 2021, which are available at www.nos.pt.

During 2020, NOS share price decreased 40.5% from €4.800 to €2.858, whilst PSI20 decreased by 6.1%.

Operational Indicators

Million euros
Operational Indicators ('000)	4019	4020	A 20/19	3020	q.o.q.	2019		2020
Total RGUs	9:687.3	9.963.8	29%	9.885.7	0.8%	9.687.3	9.963.8	29%
Lonvergent + Integrated RGUs	4.704.5	4.956.0	5.3%	4.890.7	13%	4.704.5	4.956.0	5.3%

Financial indicators

Million euros
NOS HIGHLIGHTS	4019	4Q20	△ 20/19	3020	q.o.q.	2019	2020	A 20/19
Operating Revenues	366.4	354.3	-3.3%	346.9	2.1%	1.458.4	1,367.9	-6.2%
EBITDA	135.9	132.0	-29%	160.6	-17.8%	640.0	603.2	-5.7%
EBITDA margin (%)	37.1%	37.3%	0.2pp	46.3%	-9.0pp	43.9%	44.1%	0.2pp
Net Income	5.4	12 g	138.4%	441	-70.8%	143.5	92.0	-35.9%
CAPEX excluding Leasings	99.7	1154	15.7%	97.8	179%	374.4	384 9	2.8%
EBITDA-CAPEX excluding Leasings	36.2	16.6	-54.1%	62.8	-73.5%	265.6	218.3	-17.8%

2.2 Technology

The Technology area aims to build and manage a portfolio of technology businesses around retail and telecommunications, as well as cybersecurity, with an international scale. This area curently compises, Bright Pixel, Vector fund and Bright lmovation fund, four controlled companies – S21Sec and Excellium (Maxive Cybersecurity Group), Bizdirect and Inovretail- that generated circa 43.5% of its revenues outside the Portuguese market with 71.1% out of the total 653 employees based abroad.

Controlled Companies

Maxive Cybersecurity is the new brand for a strategic holding two of the leading cyberseurity pure players in Europe and is positioned as one of the largest Managed Security Services Provider) pure players both in terms of business and specialized personnel offering its customers a wider set of services and capabilities from both S21sec and Excellium:

S21Sec is a reference multinational MSSP, focused on the delivery of cyber security services and development of proprietary supporting technologies, with a global customer base, leveraging its teams in Spain, Portugal and Mexico. Since June 2018, with the integration of Nextel, S21Sec is the most relevant "pure player" (company specializing exclusively in the cybersecurity sector) in Spain and Portugal in terms of turnover of cybersecurity experts.

Excellium is a market-leading managed security services provider from Luxembourg, with presence in Belgium and counting with more than 100 experts.

The significant European scale and cross-country presence of this group of cybersecurity companies will be key to address the increasingy challenging needs of all organizations and specially the requirements of those large and multi-national compan space, while ensuring agile and fast response from specialized teams close to the customer.

Bizdirect is a technology company specialized in IT solutions commercialization, consulting and management of corporate software licensing contracts and Microsoft solutions integration.

The cloud business unit continued to improve its presence on helping customation and the solutions business unit achieved important new customer reference Center, in Viseu, contributed to the international revenues that already represent 5.1% of total revenues.

InovRetail is a retail innovation company that provides data science solutions and digital tools that deliver quantifiable insights and actionable recommendations with direct and sustained impact on retailer's main product is the Staff Empowerment Solution, a SaaS based solution that help retailers in three key areas like Sales Performance Enhancement; Customer Experience Optimisation and Advanced Planning & Scheduling.

Bright Pixel is the early stage investor of Sonae IM group focused on prioritizing links to retail, telco and cybersecurity.

Minority Stakes (non-exhaustive)

Armilar Venture Funds are the 3 Venture Capital funds in which Sonae IM owns participation units acquired to Novo Banco. With this transaction, concluded in December 2016, Sonae IM reinforced its portfolio with sizeable stakes in leading edge companies such as Outsystems and Feedzai, both consistently presenting meaningful and sustainable levels of growth.

ArcticWolf, a US based company, is a global pioneer in the SOC-as-a-Service market with cutting-edge managed detection and response (MDR), which provides a unique combination of technology and services for dients to quickly detect and contain threats. Sonae IN, jointly with US technology investors Lightspeed Venture Partners and Redpoint, entered in the company's cap table in 2017 in a series B round. During 2018, the Company closed a \$45M series C round and, at the end of 2019, the Company launched a \$60M Series Dround. In October 2020, the company announced it has raised \$200 million in Series E funding at a valuation of \$1.3 billion. The funding round was led by Viking Global Investors, with additional participation from DTCP and existing investors. Sonae IM participated in all rounds, reinforcing its stake. With this new round Arctic Wolf turns into in that Sonae IM owns a direct investment and into the second in its total portfolio, alongside with Outsystems, indirectly invested through Armilar funds.

Stylesage is a strategic analytics SaaS platform that helps fashion, nome and beauty retailers and brands with critical pre, in and post season decisions globally. Every day, StyleSage pulls product data from competitors' ecommerce websites from with groundbreaking technology in machine and visual recognition, StyleSage cleans, organizes, and analyzes the massive amounts of

collected data into a cloud-based dashboard thands and retailers to make informed, data-driven decisions in areas such line planning, markdown optimization, and global expansion.

Ometria is a London based Al powered custom with the vision to become the central hub that powers all the communication between retailers and their customent was done by Sonae IM in the Series A round, alongside several strategic investors (including Summit Action, the US VC fund of the Summit Series) and was recently reinforced during series Bround.

CB4 is a company based in Israel that provides a patented Al software solution for brick and mortar critical operational issues at store, product level. The investment was part of a series B SI6M round, led by Joining. Existing investors Sequoia Capital and Pereg Ventures also participated in the round.

Reblaze is an Israeli company that proprietary security technologies in a unified platform, shielding assets from threats found on the Internet. The company raised a Series A round in which Sonae IM led jointly with JAL Ventures and Data Point Capital.

Visenze is a Singapore-based company that deligent image recognition solutions that shorten the pation as consumers search and discover on the visual web. Retailers use ViSenze to convert images into immediate product search opportunities, improving conversion rates. Media companies use Video into an engagement opportunity, driving incremental revenue. Sonae IM co-led, with Gobi Partners, a \$20M Series C round that will enable the artificial intelligence company to further invest in its penetration among smartphone manufacturers, as well as with consumer and social communications.

Daisy Intelligence is an Al-powered platform for retail merchandising teams focused on optimizing promotional product and price mixes for dramatically improved business results. Sonae IM partners invested in a C\$ 10M (circa E7M) series A round.

Nextail is a Spanish company that has developed a cloudines artificial intelligence and prescriptive analytics to upgrade retailers' inventory management processes and store operations. The company raised a \$10.0 million Series A round led by London and Amsterdam based venture capital firm KEEN Venture Partners LLP ("KEEN"), together with Sonae IM and existing investor Nauta Capital. The new financing is being used to accelerate product development and double the size of the team, as it grows internationally.

Sixgill is a market leader in deep and dark web cyber threat intelligence. Sixgill helps Fortune 500 companies, financial institutions, governments, and law enforcement agencies protect their inances, networks and reputations from cuberthreats that lurk in the deep, dark and surface webs. The advanced cyber threat intelligence platform automates all phases of the intelligence cycle — collection, analysis and dissemination of data — providing organizations with unparation and actionable insights to protect their various assets in the ever-evolving cyber threatscape. Sixgill raised \$15M in a second round led by Sonae IM and REV Venture with participation by Our Crowd. Previous investors Elron and Terra Venture Partners also participate in the round.

Case on IT is a Spanish company that has developed Medux, a machine learning solution for the measurement, prediction and analysis of landline, mobile and television services the customer experience in markets that collectively seve over 600 million users worldwide. The company raised a Series B round of international fund with Sonae IM.

CiValue is an Israeli company with offices in New York, Paris, and Tel Aviv, is a disruptive provider of cloud-based Precision Marketing and Supplier Advertising Platforms for Retailers. Sonae IM, coupled with Nielsen, led a \$6M Series A investment.

Cellwize is a leading provider of Mobile Network Automation solutions for telco, based in Israel. Cellwize offers modular solutions for an agile adoption of 'zero-touch' network automation capabilities on top of a virtualized service orchestration platform. It supports network operations, especially given the increase in network driven by 5G adoption. Sonae IM invested in a round of \$15M led by Deutsche Telekom Capital Partners. In November 2020, the company announced a \$32 million Series B funding round led by intel Capital and Qualcomm Ventures LLC with participation from Verizon Ventures, Samsung Next, and existing shareholders.

Secucloud is a Germany based company that provides a cloud security all devices (subscriber endpoints) and operating systems with no installation required, offered to Telcos & ISPs as a white label solution. Sonae M totally subscribed the multi million Series B financing round.

IriusRisk (previously named Continuum Security) is a Spanish based company with an application security platform to address vulnerabilities early in the development process. In order their international growth plans, the company has raised an investment round of 1.5 million euros, which was led by Swanlaab Venture Factory and joined by ME Venture Capital and Sonae IM. In September 2020, the company raised a series A round of 6.7 million euros participated by Paladin, 360 CP, Swanlaab JME Venture Capital and Sonae IM.

lscrambler is a Portuguese startup that develops a security solution to protect Web and Mobile Applications (lavascript code). The company raised a 2.3 million dollars in a series A financing round that was led by Sonae IM with the co-investment of Portugal Ventures

Probe.ly, having started as an internal project of Bright Pixel, won the Coixo Copital Empreender Aword 2017, has stepped from WVP (minimum valuable product) to an independent Web Application Security startup.

Sales Layer is a Spanish based company with a cloud-based Product IPM) platform, helping brands and retailers to transform their catalogs into a digital, enriched and multichannel control center. Sonae IM recently led its series A round.

Deepfence is a leading US-based cloud-native workload protection platform that aims to provide a unified security platform for kubernetes, virtual machines and serverless worklades business continuity in the face of persistent threats by detecting and disrupting sophisticated attacks targeting cloud-native technologies, the "glue" that keeps the connected. Deepfence raised \$9.5 million in Series A financing led by AllegisCyber, with participation from Sonae IM, and existing investor Chiratae Ventures.

Weaveworks is a US company that helps teams to adopt cloud native infrastructure and applications quickly, reliably and at scale. Weaveworks announced a \$36.65 million Series C funding round led by some of the world's leading public cloud and telecommunications companies, including first-time investors AWS), Ericsson, Orange Ventures, Sonae IM and Telekom Investment Pool (TIP). The round also included follow-on investments from Accel, GV, and Redline Capital.

Financial indicators

	Million euros

TECHNOLOGY AREA	4019	4Q20	ﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤ	3020	q.o.q.	2019	2020	ﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤ
Turnover	25.5	25.5	0.0%	26.5	-3.8%	115.8	114.9	-0.8%
Services Rendered	10.5	11.8	12.1%	11.1	6.0%	41.9	45.3	8.0%
Sales	15.0	13.7	-8.6%	15.4	-10.9%	73.9	69.6	-5.8%
Other Income	0.6	1.6	165.9%	0.2		1.6	2.6	59.7%
Operating Costs	28.4	26.3	-7.4%	27.0	-2.2%	124.4	118.4	-4.9%
Employee Benefits Expenses	ਰੇ.ਤੋ	ਰ ਰੇ	5.9%	8.7	13.3%	36.2	36.1	-0.3%
Commercial Costs 11)	13.8	12.9	-6.6%	14.3	-9.8%	70.9	66.2	-6.6%
Other Expenses (2)	5.3	3.5	-33.2%	3.9	-9.4%	17.4	16.2	-7.1%
Underlying EBITDA(3)	-0.4	0.7		-0.2		-5.2	-0.5	90.0%
Underlying EBITDA Margin (%)	-1.5%	2.7%	4.2pp	-0.6%	3.3pp	-4.5%	-0.5%	4.1pp
Operating CAPEX(4)	2.8	14	-494%	1.0	494%	6.9	444	-36.4%
Operating CAPEX as % of Turnover	11.1%	5.6%	-5.5pp	3.6%	2.0pp	6.0%	3.8%	-2.2pp
Underlying EBITDA - Operating CAPEX	-3.2	-0.7	77.0%	-1 1	33.7%	-12.2	-4 9	59.4%
Total CAPEX	12.5	14.0	12.4%	4.5		37.6	24.9	-33.8%

(1) Comnerial Costs = COSS + Mktg & Sales + Dutsurcing Sevices + B&A + Provisions + others; (3) hcludesthe businesses fully considated at Technology area; (+) Derating CAPEX excludes Financial Investments

Turnover

Turnover decreased 0.8% you explained by the decrease on the transactional business of third-party products. Services rendered presented a growth when compared to 2019, mainly driven by the double-digit growth of cybersecurity services.

At the end of 2020, following a Microsoft's license agreement review between Bizdirect and one of its main customers, the contractual terms have changed, with Bizdirect maintaining its advisor partner impact on Bizdirect revenues, and consequently at Sonaecom revenues, of circa 18 million euros through 2021 but with no expected impacts on results.

Operating costs

Operating costs decreased 4.9% to 118.4 million euros mainly explained by the 5.5% decline at Commercial costs, aligned with the lower level of sales, and by the 7.1% decrease of Other expenses, mainly explained by the lower level of Outsourcing Costs.

Underlying EBITDA

Underlying EBITDA stood at negative 0.5 million euros, but significantly better than 2019 (+90.0%), driver by the relevant in Cybersecurity companies.

Underlying EBITDA-operating CAPEX

Underlying EBITDA-operating CAPEX stood at negative 4.9 million euros, increasing when compared to 2019, mainly explained by the higher EBITDA but also driven by the lower level of Operating CAPEX. Excluding the IFRS 16 impacts, operating CAPEX would have reached 3.2 million euros, 0.6 million euros below 2019.

2.3 Media

During 2020, Público continued to pursue its digital competencies and presence in online platforms and continued to implement important initiatives aimed at strengthening Público as the reference Portuguese speaking news organization.

In the year of its 30" anniversary, and despite all the challenges faced driven by the pandemic, 2020 was a very positive year in which its reference good journalism was recognized by its contents, and illustrations receiving different national and international prizes.

Since the start of the pandemic and the related restrity was impacted, namely offline newspaper sales, with the temporary close of the majority of points of sale, and advertising revenues, with the cut on marketing expenses implemented across al companies. However, the new context benefited the online the company to record relevant improvements on online subscriptions and online advertising revenues.

The positive performance of online business was not enough to compensate the negative evolution of offline revenues which translated into an overall 12.3% revenue decrease but contributed to a positive evolution at EBITDA level.

3. Shareholder Remuneration

The Board of Sonaecom has approved the distribution proposal of a 9.7 euro cents gross dividend per share, corresponding to a pay-out ratio of 50% of the Consolidated Net Income Group Share and a dividend yeld of 6.9%, based on the closing price as at December, 31st 2020. This proposal is subject to the final approval of the General Shareholders Meeting.

4. Subsequent events

On 2021 January 7", following the worsening pandemic situation with a higher transmission rate and an increased number of deaths, it was formally declared a new state of emergence and a new national lock-down. On 2021, March 11°, the Portuguese Government approved a gradual easing of lockdown plan based on risk evolution.

Despite the current economic uncertainty, given the company's capital structure, we remain confident in company's resilience.

5. Appendix

Consolidated income statement

Million euros
CONSOLIDATED INCOME STATEMENT	4019 R	4Q20	v 20/19	3020 R	q.o.q.	2019 R	2020	ﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤ
Turnover	29.8	29.6	-0.7%	29.9	-1.0%	132.4	1291	-2.5%
Services Rendered	12.3	14.0	14.2%	12.7	10.0%	49.1	52.5	6.9%
Sales	175	15.6	-11-2%	17 2	-9.2%	83.3	76.5	-8.1%
Other Income	0.9	1.8	99.5%	03		2.4	3.2	29.7%
Operating Costs	34.0	316	-7.0%	31.1	1.6%	144.8	136.1	-6.0%
Employee Benefits Expenses	12.1	12.8	6.1%	11.2	14.6%	46.4	46.4	0.1%
Commercial Costs(1)	14 9	13.7	-7.8%	14.8	-7.4%	74.6	68.3	-8.4%
Other Expenses (4)	7.0	5.1	-27.9%	5.1	-0.7%	23.8	214	-9.9%
EBITDA	-6.8	3.4		0.7		30.5	11.8	-61.4%
Underlying EBITDA(3)	-13	0.1		-0.8		-8.1	-3.1	61.4%
Non recurrent itens 41	-2.0	-0.3	86.2%	-9.2	97.1%	11.9	-9.9
Equity method(5)	-3.6	3.7		10.7	-65.9%	279	24.8	-11.0%
Discontinued Operations(0)	0.0	0.0	-100.0%	0.0		-11	0.0	100.0%
Underlying EBITDA Margin (%)	-4.4%	0.2%	4.6pp	-2.6%	2.7pp	-6.1%	-2.4%	3.7pp
Depreciation & Amortization	3.9	23	-42.6%	21	5.0%	10.2	8 d	-12.8%
EBIT	-10.8	1.2		-1.4		20.3	2.9	-85.7%
Net Financial Results	-0.1	0.0	48.2%	-0.2	76.0%	-0.1	-0.7
Financial Income	0.8	0.8	0.7%	0.4	125.3%	2.3	2.8	20.9%
Financial Expenses	0.9	0.9	-3.7%	0.5	60.2%	2.4	3.6	47.4%
EBT	-10.8	1.1		-1.6		20.3	2.2	-89.2%
Tax results	-0.1	13.3		2.5		18	17.2
Direct Results	-10.9	14.4		0.9		22.0	19.4	-11.8%
Indirect Results(')	28.3	16.8	-40.4%	24.5	-31.3%	27.7	ਤਰੇ ਤੋ	41.6%
Net Income	17.4	31.2	79.9%	25.4	23.0%	49.8	58.7	18.0%
Group Share	18.2	31.4	72.8%	25.7	221%	52.2	60.1	15.3%
Attributable to Non-Controlling Interests	-0.8	-0.2	78.6%	-0.3	49.7%	-2.4	-1.4	41.2%

ि है कि स्वीकृति को स्वेक्ट कर सकता है कि सकता है कि सकता है कि सकता है कि सकता है कि सकता है कि सकता है कि सकता है कि सकते हैं कि सकते हैं कि कहा कि महिला है कि किसी में प्

Consolidated balance sheet

Million euros
CONSOLIDATED BALANCE SHEET	4019	4Q20	ﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤ	3020 R	q.o.q.	2019	2020	ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤ
Total Net Assets	1,203.0	1,247.5	3.7%	1,191.3	4.7%	1,203.0	1,247.5	3.7%
Non Current Assets	897.4	966.8	7.7%	910.9	6.1%	897.4	966.8	7.7%
Tangible and Intangible Assets and Rights of Use	23.0	20.9	-9.2%	19.2	8.7%	23.0	20.9	-9.2%
Goodwill	14.5	14.5	0.0%	14.5	0.0%	14.5	14.5	0.0%
Investments	847.6	907.4	7.1%	863.2	5.1%	847.6	907.4	7.1%
Deferred Tax Assets	4.3	16.4		45		4.3	16.4
Others	8.0	7.6	-5.0%	9.4	-193%	8.0	7.6	-5.0%
Current Assets	305.6	280.7	-8.2%	280.4	0.1%	305.6	280.7	-8.2%
Trade Receivables	27.2	22.6	-16.9%	19.9	13.6%	27.2	22.6	-16.9%
Liquidity	255.9	233.7	-8.7%	233.1	0.3%	255.9	233.7	-8.7%
Others	22.5	24.4	8.3%	27.5	-11 3%	22.5	24.4	8.3%
Shareholders' Funds	1,072.5	1,114.5	3.9%	1,076.3	3.5%	1,072.5	1,114.5	3.9%
Group Share	1,073.1	1,101.4	2.6%	1,072.1	2.7%	1,073.1	1,101.4	2.6%
Non-Controlling Interests	-0.6	13 1		43		-0.6	13.1
Total Liabilities	130.5	133.0	1.9%	115.0	15.7%	130.5	133.0	1.9%
Non Current Liabilities	71.7	71.5	-0.2%	58.1	23.2%	71.7	715	-0.2%
Loans	3.3	21	-34.8%	2.3	-6.6%	3.3	2.1	-34.8%
Provisions	30.8	30.0	-2.7%	22.6	32.5%	30.8	30.0	-2.7%
Others	37.6	39.4	4.8%	33.1	18.9%	37.6	39.4	4.8%
Current Liabilities	58.8	61.4	4.6%	56.9	8.0%	58.8	61.4	4.6%
Loans	15	1.5	14%	13	16.9%	1.5	15	1.4%
Trade Payables	19.0	16.9	-11-3%	17.4	-2.8%	19.0	16.9	-11.3%
Others	38.2	43.0	12.6%	38.2	126%	38.2	43.0	12.6%
Operating CAPEX(1)	4.7	4.0	-16.3%	11		10.4	7.6	-27.3%
Operating CAPEX as % of Turnover	15 9%	13.4%	-2.5pp	3.8%	9.6pp	7.9%	5.9%	-2.0pp
Total CAPEX	14.4	16.6	15.2%	4.7		41.1	28.1	-31.7%
Underlying EBITDA - Operating CAPEX	-6.0	-3.9	35.3%	-1.9	-104.9%	-18.5	-10.7	42.2%
Gross Debt	19.4	18.2	-6.4%	16.6	9.3%	19.4	18.2	-6.4%
Net Debt R - Restated according with introductoru note	-2365	-215 5	8.8%	-216.4	04%	-236.5	-215.5	8.8%

(1) Operating CAPEX excludes Financial Investments.

Consolidated levered FCF

Million euros
LEVERED FREE CASH FLOW	4019	4Q20	ﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤ	3020	q.o.q.	2019	2020	ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤ
Underlying EBITDA-Operating CAPEX	-6.0	-3.9	35.3%	-1.9	-104.9%	-18.5	-10.7	42.2%
Change in WC	0.1	5.4		2.6	108.0%	-3.6	4.4
Non Cash Items & Other	6.6	1 9	-71.3%	0.4		4.3	4.8	12.0%
Operating Cash Flow	0.6	3.4		1.1		-17.9	-1.5	915%
Investments	-11.3	-12.1	-7.4%	15.3		36.9	-3.4
Dividends	0.0	0.0		0.0		47.0	0.0	-100.0%
Financial results	-0.1	04		-0.1		0.3	0.2	-49.7%
Income taxes	0.8	0.6	-24.0%	-4.2		2.5	-2.2
FCF(t)	-9.9	-7.7	22.7%	12.0		68.8	-6.9

َ [1] FCF Levered after Financial Expenses but before CapitalFlows and Financing related up-front Costs.

Sonaecom SGPS is listed on the Euronext Stock Exchange. Information is available on Reuters under the symbol SNC.LS and on Bloomberg under the symbol SNC:PL.

SAFE HARBOUR

This document may contain forward-looking information and statements, based on management's current expectations or beliefs. Forward-looking statements are statements that are not historical facts.

These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including but not limited to, changes in regulation, the telecommunications industry and economic conditions; and the effects of competition. Forward-looking statements may be identified by words such as "believes", "expects", "intends", "intends", "should", "seeks", "estimates", "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors, and, generally, the recipients of this document 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 our control, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. You are cautioned not to put undue reliance on any forward-looking information or statements. We do not undertake any obligation to update any forward-looking information or statements.

Report available on Sonaecom's corporate website www.sonaecom.pt

Investor Relations Contacts Tlf: +351 22 013 23 49