CTT-Correios de Portugal

Investor Presentation • Mar 16, 2021

FY20

Results Presentation

Disclaimer

S CLL

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 full year 2020 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 obligation to publicly update or revise any of the information contained in 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 placed on, the accuracy, completeness or correctness of the information or the opinions or statements expressed herein. Neither the Company nor its subsidiaries, affiliates, 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 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 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-LOOKING STATEMENTS

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. Statements that include the words "expects", "estimates", "foresees", "predicts", "intends", "plans", "believes", "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 and unknown 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 bevond 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 neither represent a commitment regarding 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 the date of this presentation. Except as required by applicable law, CTT does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Highlights

A year marked by the pandemic impact on peoples and companies

4Q20, with the strongest EBITDA¹ since 1Q16, delivers on guidance at all levels

Enabling the digital transformation of the Portuguese companies

Strong volumes growth in parcels leads to profitability improvements

Banco CTT reaches the profitability milestone

Stronger counter measures accelerated for restoring mail sustainability, given the pandemic impacts

Taking a leadership role in sustainability

The recovery from the mid-year lows, provoked by the COVID-19 pandemic, accelerated in 4Q20, underpinned also by seasonal factors

Financial highlights

€ million; % change vs. prior year

2020 was also a year of modernization and innovation, marked by many new partnerships and new product launches...

• New brand positioning, to reflect the Company's evolution
• Launch of a new store concept with 24h self-service
• Installation of new mixed-mail sorting machines, acquired as part of the project to modernize mail operations

Partnership with the Portuguese Institute of Records and Notary for home delivery of citizen cards, leveraging on the digitalization of the economy to increase mail volumes. Circa 150k cards were delivered to this date

• Partnership with BNP Paribas to provide factoring solutions to SMEs, with no additional capital requirements for Banco CTT
• Banco CTT distinguished with the No.1 in Customer Satisfaction award by ECSI and Net Promoter Score of 46.7 in 2020

LEADING COMPANY BANKING bancoctt

2020

ECSI

PORTUGAL

European Customer Satisfaction

Index

• Partnership with EduBox to facilitate top ups of student meal cards in the Payshop network through a digital wallet which enables cashless payments in schools. Currently there are >27k digital wallets

...especially in the Express & Parcels business, where CTT continues to invest, partner and lead in the development of the e-commerce ecosystem in Portugal and in Spain

• Partnership with Lidl to install co-hosted parcel lockers. At year end, CTT's PUDO network in Portugal consisted of >1,800 points

• Partnership with the National Association of Pharmacies and Well's to deliver medicines

• New facilities in Barcelona $\delta$ Valencia and new sorters in Madrid & Barcelona, with capacity for 15k parcels/hour

• New brand launched in Spain (CTT Express), positioning for the strong growth ahead

• Launch of premium international next-day delivery and 2-men delivery services

• "Green delivery" partnership with Nespresso for customers' orders to be delivered in electric vehicles

• Launch of SME online shops creation initiative, with >1,800 SMEs registered

• Dott marketplace reached 200k registered users & 1.4k vendors
• Launch of app CTT Comércio Local to foster e-commerce amongst small businesses

Tu red
ibérica de envíos

Stellar year for Express & Parcels, which is turning into a true growth engine for CTT, as investments in e-commerce infrastructure meet strong demand, spurred by the pandemic

Express & Parcels volumes

million items; % change vs. prior year

• Portugal has finally embraced online shopping, at the same time as CTT's long-standing efforts as an enabler of the development of e-commerce in the country are starting to flourish
• Record 8.0m parcels delivered in Portugal in 4Q20, with increasing market share (ANACOM data indicates that the overall parcels market grew by 20.0% in 2020 $^{1}$ )
• Capture of new large e-tailer clients such as Amazon $\bullet$ and AliExpress (with c.60k daily parcels) provided a strong boost to Spanish volumes in 4Q20
• Increased own sales & distribution (vs. franchisee) to $\bullet$ 65% & 78% of total in 4Q20 (from 38% & 42% in 4Q19, respectively), to align own capabilities with clients' e-commerce needs

Banco CTT reached the profitability milestone in only the 5^th year of its existence, demonstrating the business model's resilience in a year of relevant impairments across the financial sector

Banco CTT loans / deposits stock & quarterly production € million; % change vs. prior year

• Demand for used cars remained robust throughout the pandemic – more volumes and smaller ticket sizes -, minimizing the impacts of the pandemic on auto loan book growth
• To actively maximize the risk-adjusted return $\bullet$ on capital, emphasis shifted from mortgage to auto loans
• At the end of 2020, moratorium requests amounted to €40.4m (€31.1m in mortgage, €6.4m in auto and $€2.9m$ in other loans). representing only 3.6% of the gross credit portfolio, much lower than the market
• Customer deposits registered another year of strong growth, as 56k current accounts were added, despite the restrictions caused by the lockdown and the introduction of debit card commissions since Apr-20

Weaker than expected recovery of mail volumes in 2H20 led to double-digit decline in mail revenues for the year, despite very strong growth in Business Solutions and USO Parcels

Financial Services volumes remained stable, despite the challenging operational environment for high-street retail, benefitting from CTT's close ties with the population

Public debt placements

€ million; % change vs. prior year

Public debt placements benefited from a very strong start of the year with large amounts of certificates maturing in January; however, they were also impacted by the unprecedent restrictions on the movement of people in 2Q20 and the partial lockdown in 4Q20

Money orders

m operations; % change vs. prior year

Money orders grew due to the partnerships with the Government for the payment of unemployment and other social subsidies, reaffirming CTT's continued commitment to public service

Leading on sustainability

Alignment with the UN Sustainable Development Goals¹

Carbon Emissions

Sectt

$\overline{CO_2}$ tons (scopes 1+2+3) vs. 2013 base year (CTT science-based target)

CTT is committed to reduce absolute emissions by 30% (scopes 1, 2 and 3) by 2025, using 2013 as the base year

Leadership A

$\text{CDP}^{\text{TM}}$ CTT distinguished with the highest score of Carbon Disclosure Project climate change rating

2^nd best in our industry

CTT ranked 2^nd among 19 postal operators worldwide in the International Post Corporation sustainability program

$-6\%$ (vs. 2019)

Decrease in energy consumption

Driven by decreases in electricity and fuel consumption

335 (+20 vs. 2019)

Ecological vehicles in fleet

The largest ecological transport and distribution fleet in Portugal

$-25\%$ (vs. 2019)

Decrease in road accidents

As a result of prevention and training efforts and the lockdown measures

>100k trees planted

Campaign "A Tree for the forest"

Project to protect the national forest attained remarkable adherence

11 SUSTAINABLE CITI

¹ CTT prioritized 8 Goals for the preservation of the planet and the dignity of human beings through its value chain: SDG 3; SDG 4; SDG 7; SDG 8; SDG 11; SDG 12; SDG 12; SDG 13; and SDG 16 (listed on the right-hand side

ctt 02 Committed to deliver Financials

Underpinned by seasonal factors, 4Q20 confirmed the recovery trend...

Key financial indicators

€ million; % change vs. prior year

		Quarter			Full year
	4Q19	4Q20	$\Delta\%$	2019	2020	$\Delta\%$
Revenues 1	200.7	211.0	5.1%	740.3	745.2	0.7%
Operating costs $1$	172.5	178.1	3.3%	638.8	654.7	2.5%
EBITDA 1	28.2	32.8	16.4%	101.5	90.5	$-10.8%$
EBITDA including IFRS 16	34.6	40.3	16.4%	128.3	118.9	$-7.3%$
Specific items	2.2	4.9	120.8%	18.2	7.0	$-61.7%$
EBIT	13.0	17.2	32.1%	47.3	34.5	$-27.0%$
Tax	2.8	1.9	$-32.6\%$	6.2	6.4	1.9%
Net profit attributable to equity holders	6.3	12.3	94.5%	29.2	16.7	$-42.9%$
Free cash flow	16.2	22.0	36.1%	32.3	21.8	$-32.4%$
1 Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.		The strongest quarterly performance since 1Q16			Tax expenses are not directly comparable between periods, due to the one-time tax refund of €6.8m received in 2019 and the tax credit of €3.3m recognized in 4Q20

...as dynamic performances by the growth levers Express & Parcels and Banco CTT compensate the revenues decline in the legacy businesses

Strong growth in Express & Parcels and Banco CTT was offset by declines in Mail & other and Financial Services & Retail revenues, pressured by the impacts of the pandemic. $\bullet$ Excluding the 321 Crédito effect (inorganic in the first 4 months of 2020) & the one-time impact of elections ( $\epsilon$ 5.3m in 2019), revenues were practically flat, declining by $\epsilon$ 2.6m (-0.4%)

¹ Excluding Specific items.² Including Central Structure.

³ The business line "Retail sales" of the Mail & other business unit migrated to the Financial Services & Retail business unitin 1Q20 (proforma figures presented for FY19 throughout the presentation).

Like-for-like operating costs increased only in Express & Parcels, as a result of the robust growth in volumes

Excluding the inorganic effect of 321 Crédito (in the first 4 months of 2020):

• Staff costs declined by $C7.5m$ (-2.2%). As the pandemic led to lower healthcare plan utilization by staff, healthcare costs decreased by $E2.4m$ (-19.5%)
• ES&S costs increased by $E16.3$ m (6.2%), given the $E14.6$ m increase in direct costs and the $E5.6$ m increase in temporary work, as a result of the higher parcel volumes
• Other costs increased by $\epsilon$ 2.5m (8.7%), as a result of the direct costs of launching new partnerships ( $\epsilon$ 3.9m)

¹ Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.² Including Central Structure. ³ The business line "Retail sales" of the Mail & other business unit migrated to the Financial Services & Retail business unit in 1Q20 (proforma figures presented for FY19 throughout the presentation).

The business interruption in Mail during the lockdown and the subsequent slow recovery weighed on profitability, given the unsustainable regulatory & pricing framework

1 Including Central Structure.² The business line "Retail sales" of the Mail & other business unit migrated to the Financial Services & Retail business unit in 1Q20 (proforma figures presented for FY19 throughout the pre ³ Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.

FY20 Cash flow

The net cash position and the net financial debt remained stable

$\epsilon$ million; impact on cash flow vs. prior year $90.5 (-11.0)$ EBITDA $(-9.9)$ Specific items impacting EBITDA $(-12.0)$ 33.4 Capex $(-12.5)$ Change in working capital Operating cash flow $42.9$ $(-1.6)$ $[9.0 \ (+11.2)$ Tax $12.1 (-2.3)$ Employee benefits Free cash flow $21.8$ (-10.5)

31 December 2020 Net financial debt¹ $\epsilon$ million

$(+)$ Cash & cash equivalents	518.2
(-) Net Financial Services & other payables	235.7
(-) Banco CTT liabilities, net 2	127.7
$(-)$ Other $3$	19.4
$(=)$ Own cash	135.4
$(-)$ Financial debt	91.7
(=) Net cash position	43.8
$(-)$ Lease liabilities (IFRS 16) 4	115.2
Net financial debt 1	71.4

¹ Does not consider Employee benefits, net.² The change in net liabilities of Financial Services and Banco CTT reflects the evolution of credit balances with third parties, depositors or other banking financial liabili securities/banking financial assets, of entities of the CTT Group providing financial services, namely CTT financial services, Payshop, Banco CTT and 321 Crédito.³ The change in other cash items reflects the evolution of cheques/clearing of Banco CTT cheques, and impairment of sight and term deposits and bank applications.⁴ Increase of + €31.3m of lease liabilities (IFRS16) following the revision of the terms of those contracts. This rev interpretation of the IFRS16 Interpretation Committee on the concept of lease term, which essentially determines that an entity should assess whether the contract is enforceable beyond the period in which it can be cancell contract, but also its broader economic aspects.

ctt Committed to deliver

Strategy & guidance update

03

The mail volumes decline accelerated in 2020 due to the pandemic; the trend is expected to improve in 2021

CTT addressed mail volumes evolution

Million items; CAGR (%)

A new and improved concession contract will be critical to restore the sustainability of the universal postal service

Mail Universal Service Obligation

• It is critical to redefine a new sustainable concession contract in 2021, to restore the pricing lever and improve operational flexibility • For CTT to remain the universal postal service provider, the contract terms need to improve substantially • A governmental working group has been set up to establish the basis of the new terms for the future concession contract, in line with the aforementioned concerns

Compensation & Contract Rebalancing

• Given the unilateral decision by the Government to extend the existing concession contract until 31 December 2021 without amendments, the contractual financial terms require revision • In addition, given the impacts of the pandemic, CTT is seeking special compensation for 2020 • The compensation (2020) and the rebalancing (2021) formal procedures have already been launched

European reference peers have been financing the USO mostly via price increase or direct public funding (subsidies or SGEI)

If CTT would normalize prices with European peers, the implicit price increase would be significantly high

		Registered	Standard occasional			Europe Mail prices
	PPP 1 Adjusted to Portugal Price not adj.	Implicit 2021 CTT price increase to normalize	PPP 1 Adjusted to Portugal Price not adj.	Implicit 2021 CTT price increase to normalize	Portugal Price not adj.	PPP 1 Adjusted to Implicit 2021 CTT price increase to normalize
CTT	$\epsilon$ 2.35 1,2		$\epsilon$ 0.53		$E$ 0.88		In addition,
Peer 1	€5.41 €7.27	130%	€0.82 £1.10	54%	£1.42 £1.91	62%	there are peers
Peer 2	€ 6.50 E9.05	177%	€0.69 €0.96	30%	£1.11 £1.55	26%	receiving subsidies to
Peer 3	€1.86 £2.25	$-21%$	€0.54 £0.66	3%	€1.40 £1.70	59%	compensate the USO costs
Peer 4	€2.51 €3.30	7%	€0.61 E0.80	15%	€0.84 £1.10	$-5%$	(e.g.: Poste Italiane will receive a $E1.3$
Peer 5	$E$ 2.33 $E$ 3.15	$-1%$	€ $0.55$ € 0.74	3%	€0.74 £1.00	$-16%$	billion state aid 3 for the period
Peer 6	€5.82 €6.90	148%	€0.93 £1.10	75%	€0.97 £1.15	10%	2020-2024, maximum yearly
Average	€4.07	73%	€0.69	30%	€1.08	23%	compensation of €262 million)

¹ Purchasing power parities, Source: Eurostat.² Registered product, used as a baseline comparison with all comparable versions of peer's registered products (i.e., D+1, signature collection and single purchase, except prices according to websites published 2021 prices.³ Source: European Commission SA.55270.

Asctt

The implementation of a new distribution model in 2021 is expected to increase productivity and cargo capacity

• To be implemented in more than 90 $\bullet$ distribution depots (in large cities and district capitals) with expected 15% productivity gain
• Motorization of fast parts expected $\bullet$ to result in 3x increase in cargo capacity vs. walking routes
• Regular mail delivered in 3 working $\bullet$ days, maximizing density of the slow parts
• Operational capacity geared towards $\bullet$ fastest growing products, such as parcels and priority mail
• C.30% length reduction in walking $\bullet$ routes – safer for mailmen/women

¹ Distance presented corresponds to indicative distance per route

CTT is uniquely positioned to provide services across the whole e-commerce value chain...

	E-commerce offer
Value		冊		83	$\chi$	$\frac{1}{\sqrt{2}}$
$\overline{\textsf{Chain}}$	Marketing / Advertising	Online sales	Payments	Logistics	Dispatch	Reception	Returns
	Online and physical marketing	$\text{d} \text{d} \text{t}_{\text{pt}}$	-------------------------------------- payshop	Traditional logistics	Modular E&P offer Partnerships Uber OLX Shopkit	Pick-up & Drop-off points	Easy return solutions
Solutions	campaigns	Online Shops creation	Physical $\mathbf{\hat{x}}$		Same-day delivery		Traditional logistics
	ctt Ads	ctt Comércio Local	Digital	E-fulfillment	cttnow	Parcel lockers	E-fulfillment

... coupled with the potential for e-commerce growth in Iberia, it enables profitability improvements and promotes the turnaround of the Spanish operation

Percentage of e-commerce in retail sales

Both Portugal and Spain are still lagging in e-commerce as % of total retail when compared to EU peers...

... while in 2020 both countries narrowed the gap, growing by 53% and 41% respectively, this trend should continue with key e-tailers making their way into Iberia

Key priorities

I. Improve profitability

• Build a leading Iberian CEP platform (e.g. 20 new sorting centers, new automated sorters in Madrid, Barcelona, Valencia and Murcia)
• Reinforce the investment in physical and digital assets (e.g. new dynamic routing software)

II. Complete the turnaround of the Spanish operation

• Unit costs improvement since September 2020 due to the onboarding of new large e-tailer clients & continuous investment in automation

¹ Individual company views (not consolidated). Portugal's margin including intercompany eliminations.

Banco CTT aims to continue the strong growth trend, consolidating its profitability and leveraging on digital capabilities

Key priorities	321	Example 2
Consumer credit	Auto loans	Mortgage loans	Payments	Deposits & savings
Reinforce digital player nature Leverage on digital channels, with simplified underwriting, raising client consideration and	Accelerate growth Increase commercial presence and diversify commercial channels, based on a recently deployed technological platform	Sustain growth Continue the growth path while protecting profitability and ensuring significant footprint among credit intermediaries	Refund business model Evolve to digital era, from cash to digital payments services provider Increase value	Convert into value Monetize client base through commissions and product penetration (including low capital) demand products, e.g. off-Balance sheet
product penetration			extracted from current agents	savings)

Positioning as a mostly digital consumer credit & retail bank

2021 outlook

The agent that best combines physical & digital dimensions in supporting companies' digitalization, with particular emphasis on e-commerce

ctt 04 Committed to deliver Appendix

Equity increased by 14.4%, due to Net profit generation and healthcare plan actuarial gains

Mail revenues generation and profitability levels significantly impaired by the atypical volumes decline in 2020, higher than expected at the start of the year, due to the pandemic

Volumes by type (mitems)

Metric	Avg. mail prices	Addressed mail	Transactional	Advertising	Editorial	Unaddressed mail
FY20	N/D $1.4\%$ after	516.9	447.2	39.7	30.0	412.3
vs. FY19	quality of service level $+1.8%$ penalties	$-16.5%$	$-16.6%$	$-17.6\%$	$-13.7\%$	$-20.9%$

1 Including Central Structure. The business line "Retail sales" of the Mail & other business unit migrated to the Financial Services & Retail business unit in 1Q20 (proforma figures presented for FY19). ² Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.

Strong parcels growth is translating into improved profitability in both Portugal and Spain

¹ Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions. ² Individual company views (not consolidated).

Banco CTT reaches profitability for the first time in its short 5-year history

Selected Banco CTT Balance sheet indicators

Metric	Assets $(\epsilon m)$	Cash & equivalents	Investments	Credit to clients l (net of impairments)		Customer deposits $(\epsilon$ m)	Equity $(\epsilon m)$ / $CET 1$ Fully implemented $(\% )$
31-Dec-20	.,999.9	270.6	517.8	1,093.3	517k current	1,689.1	$211.7/16.8\%$
vs. 31-Dec-19	$-20.0\%$	+30.9%	$-13.5%$	$+23.4%$	accounts $(+12.2\%)$	$+31.6%$	$+0.2\%$ / $-2.2$ p.p.

¹ Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.

Financial Services & Retail provides a solid contribution to group profitability, despite the challenging environment for brick-and-mortar retail

Financial Services volumes by type

Metric	Savings & insurance flows $(\epsilon$ bn)	Placements	Redemptions	Money orders (m ops.)
FY20		3.8 of which $3.8(-2.0\%)$	0.8	+ J.Z
vs. FY19	$-3.8%$	public debt $-3.4\%$	$-5.7\%$	$7.6\%$

¹ The business line "Retail sales" of the Mail & other business unit migrated to the Financial Services & Retail business unit in 1Q20 (proforma figures presented for FY19). ² Excluding Specific items & IFRS 16 impacts, depreciation, amortization, impairments and provisions.

Consolidated Income statement

Income statement $\epsilon$ million	Reported		With Banco CTT under equity method
	2019	2020	2019	2020
Revenues	740.3	745.2	695.3	679.2
Operating costs	638.8	654.7	593.0	604.5
EBITDA	101.5	90.5	102.3	74.7
EBITDA including IFRS 16	128.3	118.9	128.5	102.3
Impairments & provisions	8.6	15.3	5.7	6.1
Depreciation & amortization	54.2	62.1	49.4	56.3
of which IFRS 16 impact	21.6	24.5	21.0	23.7
Specific items	18.2	7.0	16.7	6.8
EBIT	47.3	34.5	56.7	33.2
Net financial income / (costs)	$-10.4$	$-9.6$	$-10.3$	$-9.6$
of which IFRS 16 impact	$-3.7$	$-3.3$	$-3.6$	$-3.2$
Associated companies – gains / (losses)	$-1.4$	$-1.7$	$-9.4$	$-1.5$
Earnings before taxes	35.5	23.1	37.0	22.2
Net profit attributable to equity holders	29.2	16.7	29.2	16.7

Consolidated Balance sheet

Balance sheet

CILINATION		Reported		With Banco CTT under equity method
	31-Dec-19	31-Dec-20		31-Dec-19	31-Dec-20
Non-current assets	1,734.7	1,984.3		615.8	638.8
Current assets	778.8	910.6		456.9	484.0
Assets	2,513.4	2,894.9		1,072.8	1,122.8
Equity	131.4	150.3		131.4	150.3
Liabilities	2,382.0	2,744.6		941.3	972.5
Non-current liabilities	512.8	493.4		432.0	444.0
Current liabilities	1,869.2	2,251.2		509.3	528.5
Equity and Liabilities	2,513.4	2,894.9		1,072.8	1,122.8

Consolidated Cash flow statement

Cash flow		Reported			With Banco CTT under equity method
$\epsilon$ million	2019	2020	$\triangle$ 20/19	2019	2020	$\triangle$ 20/19
EBITDA	101.5	90.5	$-11.0$	102.3	74.7	$-27.6$
Specific items affecting EBITDA	16.8	7.0	$-9.9$	15.3	6.8	$-8.6$
Capex	45.4	33.4	$-12.0$	39.0	27.2	$-11.8$
Change in working capital	5.3	$-7.2$	$-12.5$	3.9	$-2.5$	$-6.4$
Operating cash flow	44.5	42.9	$-1.6$	51.9	38.2	$-13.7$
Tax	2.2	$-9.0$	$-11.2$	5.2	$-2.6$	$-7.8$
Employee benefits	$-14.4$	$-12.1$	$+2.3$	$-14.4$	$-12.1$	$+2.3$
Free cash flow	32.3	21.8	$-10.5$	42.7	23.5	$-19.2$
Debt (principal + interest)	59.3	$-1.5$	$-60.9$	59.3	$-1.5$	$-60.9$
Dividends	$-15.0$	0.0	$+15.0$	$-15.0$	0.0	$+15.0$
Financial investments & other	$-107.6$	$-0.3$	$+107.3$	$-133.6$	$-0.3$	$+133.3$
Net change in own cash	$-30.9$	20.0	$+51.0$	$-46.5$	21.7	68.3
Change in liabilities FS & other & Banco CTT (net) $1$	30.9	63.9	$+33.0$	37.4	$-3.5$	$-40.8$
Change in other 2	20.3	$-8.8$	$-29.0$	0.0	0.0	0.0
Net change in cash	20.3	75.2	$+54.9$	$-9.2$	18.3	27.5

1 The change in net liabilities of Financial Services and Banco CTT reflects the evolution of credit balances with third parties, depositors or other banking financial liabilities, net of the amounts invested in credit or Group providing financial services, namely the financial services of CTT, Payshop, Banco CTT and 321 Crédito.² The change in other cash items reflects the evolution of Banco CTT's sight deposits at Bank of Portugal, outs of sight and term deposits and bank applications.

Specific items with reduced impact on the FY20 P&L

Specific items

$Emillion$

	Reported		€0.7m capital gain related to the sale of 3
	2019	2020	non-strategic real estate assets
EBIT excluding Specific items	65.5	41.5
Specific items	18.2	7.0	€3.9m of Staff costs of which $€2.9m$ related to the HR optimization program
Revenues	$-0.6$	$-0.7$
Staff costs	11.9	3.9	$\epsilon$ 3.8m of ES&S & other operating costs,
ES&S & other op. costs	7.0	3.8	of which €1.1m related to COVID-19, €1.1m of regulatory fines and €0.9m of
EBIT	47.3	34.5	strategic studies (mainly related to the future renegotiation of the concession)

From a parcel to whatever you want

From a parcel to whatever you dream of

CTT Correios de Portugal, S.A. Investor Relations

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