CTT-Correios de Portugal

Investor Presentation • May 6, 2020

1Q20 Results Presentation

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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 1st quarter 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 applicablelaw, CTT does not undertake any oblicly update or revise any of the information containedin this document. Consequently, the Company does notassumeliability 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 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 otherreason, 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 contractor 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.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-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 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 with respect to future events and are subject o 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 difficultto 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 reqarding the models and plans to be implemented, nor are the y 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.

cit 09 -Committed to deliver

Highlights

1Q20 highlights

CTT services remain fully functioning, as an integral part of Portugal's critical infrastructure

Revenues growth driven mainly by banking & financial services

EBITDA impacted by the extraordinary business interruption in Mail in Mar-20

EBIT benefits from significantly lower restructuring costs

Net profit stable, despite the challenging operational environment

Mail revenues substantially impacted by COVID-19

International, registered & advertising mail the most affected by the pandemic

Resilient parcels volumes

Strong growth in B2C parcels compensates the decline in B2B volumes in both Portugal & Spain in Mar-20

€1.1m

+8.1%

Another landmark quarter for Banco CTT

Achieved positive EBIT (and Net profit) for the first quarter in its short four-year history

Increase in Financial Services & Retail 4 revenues

Robust public debt placements also affected by the unprecedented reduction in retail activity in Mar-20

COVID-19 pandemic response

CTT's immediate response to the unprecedented crisis centered on six key pillars

1. Preserve the health and wellbeing of staff and customers

• · Daily crisis-management committee, chaired by the CEO
• · Comprehensive business continuity plan launched
• · Workplace cleaning, increased investment in protective gear for employees
• · Limiting contact with customers on delivery of products & services

2. Strengthen the operational response

• Force majeureclause invoked in mail concession contract to improve flexibility
• Rotating back-up teams created to ensure business continuity in case of high number of infections
• Retail network's hours of operation adapted to the new reality

3. Reinforce financial position and liquidity

• · Intention of proposing to the Shareholders General Meeting the distribution of a dividend of €0.11 / share reversed
• Annual bonus to executive members of the BoD and employees suspended
• Defensive working capital management, accessing additional credit lines
• Sale of non-strategic assets, where the demand is still high

4. Launch an extensive Opex and Capex reduction program

• Reviewed timing and phasing of non-committed Capex and non-critical projects
• · Renewed fleet, buildings and IT contracts under new conditions, temporary freeze on marketing and consulting spend
• Managing unused vacation time and gradually reducing temporary work

5. Preserve the value of the traditional business

• · Working with clients to eliminate bottlenecks in mail printing & finishing
• · Alternative solutions sought to forward mail to the Portuguese islands
• New routes sought to receive international mail, faced with reduced international air freight capacity

6. Provide a lifeline to the communities, leveraging on digital platforms

• "Lojas online", devoted to SMEs, has gathered >900 new online shops since its launch in mid-Mar-20
• Delivery partnerships launched with Uber, Well's, the National Association of Pharmacies, and various associations of local producers
• Strong growth in new B2C partnerships and B2C market share in Spain

Partnership with

Well's to deliver

Partnership

with Uber to expand

Taking a leadership role in e-commerce

CTT has launched various initiatives and partnerships aiming at fostering the development of the e-commerce ecosystem

RESULTS PRESENTATION | 1Q20

Mail volumes were strongly affected by the restrictions on operations and movement of cargo, businesses and individuals, as a result of the COVID-19 pandemic

Mail volumes

million items; % change vs. prior year

• Several large clients' statements deliveries and advertising mail campaigns were delayed or cancelled in Mar-20, as only essential services were operating in Portugal
• Registered mail was affected by delays in tax notices and notifications from courts in Mar-20 (related to the declaration of the state of emergency in Portugal)

International mail was severely impacted by the reduction in global air freight capacity from the end of Feb-20 onwards, especially out of China

Portuguese parcels and public debt placements benefited from a strong start to the year

Parcels volumes

million items; % change vs. prior year

• Portuguese parcels volumes benefited from strong B2C growth, driven by e-commerce, despite the B2B volumes decline in Mar-20
• Strong capture of B2C volumes in Mar-20 in Spain, albeit at lower margins, mitigated the loss of a large client in Apr-19 and the B2B volumes decline as a result of the pandemic

Public debt placements

€ million; % change vs. prior year

· Public debt placements benefited from a very strong start to the year; however, they were also impacted by the unprecedented reduction in the movement of people and retail activity since mid-Mar-20

Banco CTT customers' flight to safety was evident in the strong capture of new deposits

Credit to clients

€ million

• Mortgage activity remained resilient, . despite the temporary 50% reduction in business hours in the Retail network since mid-Mar-20
• 321 Crédito credit book growth in Mar-20 was also affected by the reductions in the movement of people and the temporary closure of auto dealerships (as nonessential businesses)

Customer funds

€ million; cumulative; including retirement funds

Deposits growth accelerated strongly since the start of the pandemic, as customers chose the safety, transparency and brand name of Banco CTT

Growth in EBIT and stable Net profit in the quarter, despite the challenging operational environment in Mar-20

Key financial indicators

€ million; % change vs. prior year

	Reported
	1019	1Q20	4%
Revenues 1	176.9	179.9	+1.7%
Operating costs 1	155.9	159.7	+2.4%
EBITDA -	21.0	20.2	-3.7%
Specific items	5.6	0.0	-99.7%
EBIT	8.7	9.3	+6.7%
Net profit attributable to equity holders	3.7	3.7	-0.4%
Free cash flow	4.3	8.6	+99.8%

Growth in revenues, underpinned by the organic contribution of Banco CTT and the strong performance by Financial Services & Retail in the first two months of the quarter

Revenues breakdown

Revenues

· Excluding the inorganic in 321 Crédito, revenus dedined by E. 28) as increase in Barco CT net interestincome (+6.1.6m) and fees & commissions income (+6.2.2m) and the growth in revenues from the sale of public to offsetthe higher than-expected Mail evenues decine, provokedly the CVVD-19 partemic

1 Including Central Structure.

7 The business line "Retail's of the Mail & other hancial Services & Retail business unitin 1Q20 proforma figures presented on 10.9 throughout be presentation

Operating costs, excluding the inorganic contribution of 321 Crédito, were practically flat

• Staff costs, excluding 321 Cédito, increased by E.1%), mainy due to a ne-time cut in the phone subscribion fee beentif (E.O.9m) in Mar 19, as communicated at that time. COVID-19 led to a CO.5m reduction of the employee healthcare planinthe last 2 weeks of Mar-20, tully of temporary staff to cope with the panelenic
• * ESSS and other costs, excluding 321 Crédit, were praction in marketing costs was offset by anincrease in direct costs related to the capture of new B2C clients and the increase in related parcels voluments of sevice requirements, inceased by €0.4m. The abvernetitioned requirements were suspended since the declaration of the state of emergency in Portugal (force majeure)

1 Excluding Specific items & IFRS 16 impacts, depreciation, impairments and provisions. 2 Including Central Structure.

7 he business line "Retail's the Mall a dher business unit in 200 (proforma figures unitin 200 (proforma figures presented on 100 throught the presentation

RESULTS PRESENTATION | 1Q20

Slight decline in EBITDA, impacted by the unprecedented business interruption in Mail in Mar-20, despite the positive evolution in banking & financial services

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

2 Including Central Structure.

? The business line "Retail sale" of the Mall Gother in the Financial Services & Retail business mesented for LQ 9 throughout the presentation.

CTT faces the current period of economic uncertainty with a strong Balance Sheet...

Balance Sheet – 31 March 2020

... substantial liquidity and low levels of net financial debt

Net financial debt 1

€ million

cit Committed to deliver

OB Outlook update

FY20 outlook update

Apr-20 showed encouraging signs of stabilization in some areas, although mail and financial services remain under significant pressure

Express& Parcels

Parcels already at peak levels, due to B2C growth, albeit with lower margins. E-commerce adoption increasing at a rapid pace in both Portugal & Spain

Opex & Capex savings

Revising Capex guidance downwards to €30m for 2020, while maintaining investments in Express & Parcels automation. Opex reduction focused on ES&S costs, temporary work, marketing & consulting spending

Banco CTT

As at end of Apr-20, circa 5% of all mortgage and 7% of all auto loans contracts had received requests for payment holidays, as per applicable decree law or industry moratoria, related to COVID-19 measures

Financial Services & Retail

Slight improvement in the subscription rate of public debt products registered in Apr-20

Balance Sheet and liquidity

CTT will continue to prioritize cash reserves and treasury flexibility, currently in the process of accessing additional credit lines

Addressed mail volumes

Significant reductions in letter (statements), international & especially advertising mail are expected to lead to double-digit addressed mail volumes decline for the year

The full impacts of Covid-19 on FY20 revenues & earnings guidance currently cannot be accurately and reliably quantified. CTT will provide an update on guidance as soon as it is possible to do so

Pressure on profitability in Mail, as a result of higher-than-expected volumes decline, affected by the lockdown from mid-Mar-20 onwards

Revenues 1		EBITDA 1,2	EBIT 1,3
€ million; % change vs. prior year		€ million	€ million
Transactional	€94.9m (-7.9%)	-43.9%
Advertising	€5.1m (-9.1%)	20.0	-54.7%
Editorial	€3.3m (-11.0%)		10.4
Business Solutions	€2.5m (-10.6%)	11.2
USO Parcels	€1.4m (-6.4%)		4.7
Philately & other 1	€2.9m (-26.1%)
Total	€110.2m (-8.6%)	1019 1Q20	1019 1Q20
Volumes bv tvpe (m items)

Metric	Avg. mail prices	Addressed mail	Transactional	Advertising	Editorial	Unaddressed mail
1Q20	N/D	144 9	126.2 ﮯ	11.1 of which	7.6	115.4
vs. 1Q19	+0.6%	-11.8%		7.1 (-18.4%) -11.5% International inbound - -15.3%	-11.2%	+8.6%

1 hruluding Central Structure. The "Retal sales" of the Mal & other business unit migrated on the Enancial Services on in 1 Q20 (proforma figures presented for Q20,

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

3 Including Specific items & IFRS 16 impacts, depreciation, impairments and provisions.

Parcels showing signs of resilience in revenues, with lower B2B volumes compensated by strong growth in B2C activity, both in Portugal & Spain

Revenues		EBITDA *		EBIT -
€ million; % change vs. prior year		€ million		€ million
Portugal	€24.4m (+6.5%)	1.1	-3.9%	-27.3% 0.1
Parcels	€18.9m (+10.4%)	Portugal	1.0	0.1
Cargo	€2.8m (-11.5%)
Banking network	€1.8m (+11.3%)
Logistics	€0.7m (-5.2%)
Other	€0.3m (-18.3%)		-64.3%	-68.0%
Spain	€12.1m (-9.0%)	Spain
Mozambique	€0.8m (+57.2%)	-2.0		-2.4
Total	€37.3m (+1.6%)		-3.2	-4.0
Volumes by region (m items)		1019	1Q20	1019 1Q20
Metric	Total	Portugal	Spain	Mozambique
1Q20	9.7	5.6	4.1	0.01
vs. 1019	+8 1%	+14 7%	+0 3%	-158%

4 Excluding Specific items & IFRS 16 impacts, depreciation, impairments and provisions. 2 Including Specific items & IFRS 16 impacts, depreciation, impairments and provisions.

Another landmark quarter for Banco CTT, achieving positive Net profit for the first time in its short history, with a relevant contribution from the auto loans business line

Revenues		EBITDA *	EBIT 2
€ million; change vs. prior year		€ million	€ million
Net interest income	€4.1m (+€1.6m)	>>	>>
Interest income	€4.4m (+€1.7m)	3.8	1.1
Interest expense	-€0.3m (-€0.1m)
Fees & commissions income	€2.8m (+€1.2m)
Own products	€1.5m (+€0.4m)
Consumer credit & insurance	€1.3m (+€0.8m)
Payments & other	€4.6m (-€0.3m)
321 Crédito (auto loans)	€8.0m (+€8.0m)	-3.1	-4.1
Total	€19.5m (+€10.5m)	1019 1Q20	1019 1Q20

Selected Banco CTT Balance Sheet indicators

Metric	Assets (€m)	Cash & equivalents	Investments	Credit to clients (net of impairments)		Customer deposits (Em) (Em)	Equity (€m) / CET 1 Fully implemented (%)
31-Mar-20	1,718.0	180.6	474.2	947.2		481k current > 1,382.8	211.5 / 18.4%
vs. 31-Dec-19	+3.1%	-12.6%	+3.9%	+6.9%	accounts		+0.1% / -0.7p.p.

1 Excluding Specific items & IFRS 16 impacts, depreciation, impairments and provisions. 2 Including Specific items & IFRS 16 impacts, depreciation, impairments and provisions.

Stellar performance in the placement of public debt in the first two months of the quarter drove strong growth in Financial Services & Retail revenues and profitability

Revenues 1		EBITDA <	EBIT 3
€ million; % change vs. prior year		€ million	€ million
Savings & Insurance	€8.6m (+41.1%)	+47.0% 7.3	+54.9% 7.2
Money orders	€1.5m (+8.1%)	5.0
Payments	€0.1m (-11.3%)		4.7
Retail products & services	€2.7m (-1.9%)
Other	€0.0m (-73.5%)
Total	€13.0m (+23.0%)	1019 1020	1019 1Q20

Financial Services volumes by type

Metric	Savings & insurance flows (€bn)	Placements	Redemptions	Money orders (m ops.)
1020	1.6	1.4 പ	0.2 of which	3.8
vs. 1Q19	+40.4%	+50.2%	1.4 (+50.3%) -1.0%	+7.1%

4 The business inc "Retail sales" of the Mail & othe Financial Services & Retailbusiness unit in 1Q20 (proform figures presented for Q19)

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

3 Including Specific items & IFRS 16 impacts, depreciation, impairments and provisions.

EBIT growth in the quarter, despite the challenging operational environment in Mar-20

Income statement

€ million	Reported		With Banco CTT under equity method
	1019	1Q20	1019	1Q20
Revenues	176.9	179.9	172.3	164.7
Operating costs	155.9	159.7	147.1	147.4
EBITDA	21.0	20.2	25.1	173
EBITDA including IFRS 16	28.0	26.6	32.0	23.5
Depreciation, amortization, impairments & provisions	13.7	17.3	12.6	14.4
of which IFRS 16 impact	5.6	5.3	5.5	5.1
Specific items	5.6	0.0	5.5	0.0
EBIT	8.7	ਰੇ.3	13.9	9.0
Net financial income / (costs)	-2.4	-2.5	-2.4	-2.5
of which IFRS 16 impact	-1.0	-0.8	-1.0	-0.8
Associated companies - gains / (losses)	0.3	-0.6	-3.9	-0.4
Earnings before taxes	6.6	6.2	7.6	6.2
Net profit attributable to equity holders	3.7	3.7	3.7	3.8

The Balance Sheet reflects the reduction in the float from Financial Services

Balance Sheet

€ million

	Reported		With Banco CTT under equity method
	31-Dec-19	31-Mar-20	31-Dec-19	31-Mar-20
Non-current assets	1,734.7	1,797.8	615.8	610.2
Current assets	778.8	640.7	456.9	336.7
Assets	2,513.4	2,438.5	1,072.8	946.8
Equity	131.4	135.0	131.4	135.1
Liabilities	2,382.0	2,303.4	941.3	811.7
Non-current liabilities	512.8	500.5	432.0	427.4
Current liabilities	1,869.2	1,802.9	509.3	384.3
Equity and Liabilities	2,513.4	2,438.5	1,072.8	946.8

Free cash flow generation doubling from prior year

Cash flow

€ million
	Reported			With Banco CTT under equity method
	1019	1Q20	△ 20/19	1019	1Q20	മ്പ്യൂർ 19
EBITDA	21.0	20.2	-0.8	25.1	17.3	-7.8
Specific items affecting EBITDA	5.6	0.0	-5.5	5.5	0.0	-5.5
Capex	6.3	5.6	-0.8	5.4	5.1	-0.4
Change in working capital	-1.4	-2.8	-1.5	-3.2	1.8	5.1
Operating cash flow	7.8	11.8	4.1	11.0	14.1	3.1
Tax	-0.1	0.0	0.0	-0.1	0.3	0.4
Employee benefits	-3.4	-3.2	0.2	-3.4	-3.2	0.2
Free cash flow	4.3	8.6	4.3	7.5	11.2	3.7
Debt (principal + interest)	3.7	-0.2	-3.9	3.7	-0.2	-3.9
Net change in own cash	8.0	8.4	0.4	11.2	11.0	-0.2
Change in liabilities FS & other & Banco CTT (net)	-70.2	-216.7	-146.5	-84.2	-131.4	-47.2
Change in other	4.5	64.2	59.7	0.0	0.0	0.0
Net change in cash	-57.7	-144.0	-86.3	-72.9	-120.4	-47.4

Minimal amount of specific items with neutral impact on the 1Q20 P&L

Specific items

€ million

	1019	1Q20
EBIT excluding Specific items	14.2	9.3
Specific items	5.6	0.0
Revenues	0.0	0.6
Staff costs	4.0	0.0
ES&S & other op. costs	1.6	0.6
EBIT	8.7	9.3

Specific items detail

• €0.6m capital gain related to the sale of a non-strategic real estate asset
• · €0.6m of ES&S & other op. costs, of which €0.3m of strategic studies (including €0.1m related to the new concession contract) and €0.1m related to COVID-19

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Citi Correios de Portugal, S.A. Investor Relations

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

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