CTT-Correios de Portugal

Investor Presentation • May 8, 2025

8 May 2025

20 March

2025

Commitment with Purpose

1Q25 Results Presentation

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 1 st quarter 2025 (1Q25) 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 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 Market Commission's website (www.cmvm.pt). In particular, the contents of this presentation shall be read and understood in light of the financial information disclosed by CTT, through such means, which prevail in regard to any data presented in this document. By attending the meeting where this presentation is made and reading this document, you agree to be bound by the foregoing restrictions.

FORWARD-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 beyond such forward-looking statements are reasonable when made, any third parties are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of CTT, what could cause the models, objectives, plans, estimates and / or projections to be materially reviewed and / or actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Forward-looking statements (in particular, the objectives, estimates and projections as well as the corresponding assumptions) do 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 forwardlooking statements, whether as a result of new information, future events or otherwise.

Operational Review

Recurring EBIT growth driven by recovery in Financial Services

Overview

Revenues¹

€ million; % change y.o.y.

Recurring EBIT¹

€ million; % change y.o.y.

Public debt placements will add to growth in 2025

Continued growth in volumes, revenues and recurring EBIT

Express & Parcels

Tailwinds from socio-economic changes will continue to drive performance

Baseline revenue stabilisation underpinned by price increases

Mail & Other

Costs under control lead to recurring EBIT stabilised

Public debt placements reflect improved market conditions

Financial Services

A proactive commercial stance is underpinning operational performance

Continued growth in business volumes and revenues

Banco CTT

Investing in key platforms and in retail stores to drive future growth

Financial Review

1Q25 stronger than expected for the season

Financial Review

Key financial indicators

€ million; % change vs. prior year

			Quarter
		1Q24	1Q25	y.o.y
Revenues1		263.5	288.5	9.5%
EBITDA2 Operating costs -		229.4	248.7	8.4%
EBITDA2		34.0	39.9	17.2%
Depreciation & amortisation		17.1	19.7	14.8%
Recurring EBIT1		16.9	20.2	19.5%
Specific items		2.0	9.0	»
EBIT		14.9	11.2	-24.9%
Financial result		-4.1	-4.0	2.1%
Tax		3.4	1.2	-63.8%
Net profit attributable to equity holders		7.4	5.5	-25.9%
Free cash flow		3.9	2.3	-41.0%

E&P is the fastest growing activity, followed by FS and Retail

Financial Review

Revenues¹

€ million; % change vs. prior year

Revenue¹ breakdown

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

1Q25

Continued focus on profitability

Financial Review

Operating costs¹

€ million; % change vs. prior year

Operating costs (Rec. EBIT)¹ breakdown

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

• E&P costs grew €21.9m mainly due to the business development and further investment in quality
• Mail & Other costs dropped €5.6m, mainly due to a decrease in ES&S
• Financial Services costs increased €3.2m, due to higher public debt placements
• Bank costs increased €2.3m mainly due to higher staff costs

EBIT growth benefited E&P and FS, despite elections in Mar'24

Financial Review

Recurring EBIT¹

€ million; % change vs. prior year

Margin:

Normalisation of public debt placements is a positive driver of recurring EBIT

Consolidated FCF reflecting seasonal payments by Banco CTT

14

Financial Review

1Q25 Cash flow

€ million; impact on cash flow vs. prior year

Net financial debt as at 31 March 2025¹

€ million

(+5.8)		Consolidated
(-2.3)	(+) Cash & cash equivalents	310.4
(-1.3)	(-) Net Financial Services & Other payables 2	226.2
(+7.0)	(-) Banco CTT liabilities, net 2	-250.8
(+1.0)	(-) Other 3	47.5
(+2.4)	(=) Adjusted cash	287.6
(-1.4)	(-) Financial debt	68.6
(+0.1)	(=) Net cash position	219.0
	(-) Lease liabilities (IFRS 16)	170.7
(-0.3)	Net financial cash1	48.3

¹Only financial debt presented in the table, not including net employee benefits of €136.7m as at 31 March 2025; ²The 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 investments in securities/banking financial assets, of entities of the CTT Group providing financial services, namely CTT financial services, Payshop, Banco CTT and 321 Crédito. ³The change in other cash items reflects the evolution of Banco CTT's sight deposits at Bank of Portugal, outstanding cheques/clearing of Banco CTT cheques, and impairment of sight and term deposits and bank applications

Strong cash-flow generation underpinning balance sheet flexibility

FY24

movements¹

and other

1Q25

Financial Review

1Q25 Cash flow

€ million; with Banco CTT under equity method

Evolution of net debt

€ million; with Banco CTT under equity method

EBITDA and leverage

€ million; with Banco CTT under equity method

Outlook & Final Remarks

Acquisition of Cacesa concluded within envisaged schedule

Express & Parcels

Main considerations:

• The transaction was completed on 30 April 2025, aligned with the market announcement of 18 December 2024.
• The final purchase price rose from €103.8m to €106.8m, while Cacesa's net cash position improved from €12.8m to €17.6m, reducing the Enterprise Value from €91.0m to €89.1m.
• The EV/EBITDA multiple decreased from 5.5x to 5.2x, enhancing the transaction's

Enterprise Value (in €m)

Final EV of €89m, sets an EV/EBIT multiple of 5.2x

Already integrating Cacesa

Express & Parcels

To maximize know-how transfer, Cacesa will keep current organisational structure, although coordinated with CTT, to benefit from its existing know-how in the Customs Clearance sector

2 Commercial Approach

Integrated commercial approach between CTT and Cacesa, reinforcing value proposition for its customers

Starting implementation of synergies already identified, while analysing further potential synergies

4 International Opportunities

Monitor and identify expansion opportunities in the countries where Cacesa operates

Synergies should start to be visible within 3 to 6 months

Solid start towards meeting the ">€100m organic recurring EBIT" guidance

Overview

Commitment with Purpose

1Q25 Results Presentation

Investor Relations

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

8 May 2025