Sonae SGPS

Earnings Release • May 21, 2025

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1Q25 Results report

CEO letter

Dear all,

I am very pleased with the Group's overall performance in the beginning of 2025. All our businesses grew and increased market shares in very competitive sectors and under a quite volatile environment. This outcome reflects the robustness and leading positions of our companies. It is also a testament to the exceptional talent of our teams, who strive every day to do more and better for our clients, while creating economic value and contributing to environmental preservation and social progress, always with the highest ethical standards.

MC's food segment revenues increased by 7%, supported by a remarkable 5% like-for-like sales growth, particularly given the adverse calendar effect (as 2024 was a leap year and this year Easter only occurred in April). Continente's market leadership was clearly reinforced and we remain optimistic for the months ahead. MC's health, wellness and beauty division also recorded strong growth in the quarter, mostly driven by the consolidation of Druni and also by organic growth. In the aftermath of the Druni deal in July 2024, the integration of teams has been completed, and synergies are gradually being realized. The outlook remains positive, as MC holds a leading position in the Iberian market, which benefits from strong structural growth.

Worten posted significant year-on-year sales gains of 4%, supported by improved performance across different segments — namely electronics and appliances, as well as new product categories. I am quite pleased that Worten further strengthened its market share, consolidating its leading position in the sector in Portugal. Services also played a key role, with iServices continuing its geographic expansion, in Portugal and abroad.

We celebrated the first anniversary of Musti as part of the Sonae group. After a challenging start, Musti has been steadily regaining its growth trajectory, delivering month-on-month improvements in like-for-like sales with the team successfully steering the company to sustained market share gains since our investment. The integration of Pet City, acquired in November 2024, was completed this quarter, a first inorganic move aligned with Musti's role as a growth platform to capture opportunities in the expanding and highly attractive pet retail sector. In 1Q25, Musti delivered 12% sales growth, with comparable like-for-like sales (excluding the leap year) increasing by 2.4%.

Sierra benefited from the solid performance of its European shopping centres, which recorded resilient footfall, robust occupancy rates of c. 98% and growing tenants' sales (2% year-onyear LfL). In addition, the services business continued to expand its reach, paving the way to meet our strategic objectives. Overall, the strong operational performance, combined with the value of our real estate asset portfolio, contributed to growth in both net result and NAV.

In a context of mounting competitive pressure, NOS achieved sales growth of 4.5%, further consolidating its market share. In a challenging environment, NOS's performance has been remarkable. The quarter was marked by the strategic acquisition of Claranet, positioning the company to serve B2B clients in a much more comprehensive ICT offering. Looking ahead, I am confident that NOS is well prepared to compete successfully and to continue delivering reliable and relevant telecommunications solutions to both B2C and B2B segments.

Innovation plays a pivotal role in realizing our long-term goals. This quarter, we hosted significant moments dedicated to advancing our innovation agenda. We brought together colleagues from across the group to explore how innovation and artificial intelligence can reshape our operations. The strength of our innovation ecosystem was recently recognized by StartUpBlink, which ranked Sonae among the world's top 100 most dynamic companies in the global start-up ecosystem.

To sustain our positive results, we must remain future-driven, fostering an organization where people are eager to learn, experiment, and act with an entrepreneurial spirit — always striving for more and better, working collaboratively, moving with speed, and doing what's right. We have been intentional in building a culture and putting in place the mechanisms that encourage these behaviors and support our ambition. I am proud of who we are, because it is precisely this identity that sets Sonae apart. I firmly believe that our ambitious growth path can be achieved by staying true to our values.

I would like to leave a final word to express my gratitude for our teams' exemplary response to the blackout that affected the Iberian Peninsula three weeks ago. Faced with a completely unexpected event, we demonstrated remarkable team spirit and were able to keep our operations running in a challenging context, fulfilling our role of standing by the families we serve every day.

Together, we continue to create a better tomorrow for all!

Cláudia Azevedo CEO

Overview

Key Financial Indicators

• Consolidated turnover increased 23% yoy to €2.6bn in 1Q25, driven by strong organic growth across our core businesses and the integration of newly acquired companies, including Musti and Druni. Organic growth was mostly fuelled by MC, which delivered robust volume gains and further expanded its market leadership, and by Worten, boosted by a resilient online performance. Excluding the impact of acquisitions, consolidated turnover posted a solid 6% yoy increase.
• Underlying EBITDA rose 38% yoy to €218m, propelled by the positive contribution from the recently acquired companies together with a solid improvement in MC's operating profitability. The positive performance of our fully consolidated businesses, combined with €34m in equity method results, drove consolidated EBITDA up by 39% yoy to €250m. This translated into a margin of 9.8%, representing an expansion of 1.2pp yoy.
• Net result (group share) rose to €43m, up 77% yoy, reflecting improved operational performance across our portfolio companies which offset the impact of higher D&A and financial costs associated with portfolio expansion.
• Operational cash flow reached €147m in the twelve months ending March 2025 (LTM Mar-25), up from €113m in LTM Mar-24. This increase was primarily driven by stronger operational performance across our businesses, which more than offset higher capex mainly linked to the ongoing expansion of our retail businesses' footprint. Free cash flow before dividends paid stood at -€207m, reflecting the strong M&A activity over the past twelve months.
• Consolidated net debt totalled €1.9bn at the end of March, primarily reflecting the strategic acquisitions completed over the past twelve months, most notably Druni and BCF. Sonae capital structure remains strong, underpinned by ample liquidity facilities and a well-balanced debt maturity profile.
• Sonae's NAV, based on market references, totalled €4.6bn, up by 4.5% qoq, fuelled by the positive performance of the NOS stock price and improved valuations of MC and Sierra.

Key data (€m)	1Q24	1Q25	yoy	L12M Mar.24	L12M Mar.25	yoy
Income Statement
Turnover	2,081	2,553	22.7%	8,607	10,419	21.1%
Underlying EBITDA	158	218	37.6%	742	967	30.3%
Underlying EBITDA margin	7.6%	8.5%	0.9 p.p.	8.6%	9.3%	0.7 p.p.
EBITDA	180	250	39.2%	1,011	1,105	9.3%
EBITDA margin	8.6%	9.8%	1.2 p.p.	11.7%	10.6%	-1.1 p.p.
Direct Result	33	49	49.2%	429	301	-29.8%
Net result group share	24	43	77.2%	357	241	-32.3%
Balance sheet and Cash Flow
Operational cash flow	-181	-294	-	113	147	31.1%
Sale of assets	3	1	-	335	102	-
M&A capex	-658	-18	-	-766	-481	-
Free cash flow before dividends paid	-846	-322	-	-275	-207	-
Dividends paid	0	0	-	-161	-154	-
Consolidated Net debt	1,437	1,891	31.6%	1,437	1,891	31.6%

NAV (€m)	Dec.24	Mar.25	qoq
Retail	2,941	2,971	1.0%
Real estate	1,105	1,144	3.5%
Telco and technology	884	1,033	16.8%
Other investments *	354	349	-1.6%
o.w. Sparkfood	265	266	0.5%
Holding **	-852	-863	-
NAV	4,433	4,633	4.5%
Market capitalization ***	1,772	2,059	-

	1Y	3Y	5Y	10Y
Total Shareholder return *	28%	20%	142%	22%

* Includes: Sparkfood, Universo and retail apparel banners (Salsa, MO and Zippy). ** Includes: Real estate, holding costs, net debt and minorities. ***Excludes own shares. Note: NAV is based on market references. For further details, please refer to the Investor Kit at www.sonae.pt.

* Source: Bloomberg.

Portfolio

Retail

MC

75% stake, fully consolidated

In 1Q25, MC's grocery retail segment delivered a strong performance, driving market share gains and a reinforcement of its leadership position. Like-for-like (LfL) sales posted a robust increase of 5.0%, despite negative calendar effects related with the leap year in 2024 and the timing of Easter. This growth was driven by volume increases across all store formats, highlighting MC's differentiated value proposition amid a context of normalized inflation and intense market competition. During the quarter, 2 new Continente Bom Dia proximity stores were opened, and MC continued to advance its ambitious

refurbishment strategy, with circa 20 refurbishments underway—particularly targeting larger store formats.

In the Health, Wellness and Beauty segment, both Druni group (including both Druni and Arenal banners) and Wells delivered an exceptional sales performance, achieving double-digit growth despite a highly competitive operating environment, with the online channel making a notably strong contribution. In Portugal, Wells sustained consistent LfL improvement, while in Spain, Druni group posted a solid increase in revenue driven by a resilient LfL and a continued expansion of its store footprint over the last months, leading to an increase in market share.

On a consolidated basis, MC's turnover rose 22.5% yoy to €2.0bn in 1Q25, or 8% yoy when considering the proforma contribution of Druni, which has been consolidated since 3Q24. Profitability also improved, with uEBITDA reaching €187m, and uEBITDA margin expanding 0.9pp yoy to 9.5%. The margin increase was primarily driven by the consolidation of Druni, accelerated topline growth and ongoing operational efficiencies, which more than offset pressures from inflation, rising staff costs and higher energy prices.

Free cash flow in 1Q25 (-€118m) reflected the seasonal impacts of the retailing activity over working capital, namely the later timing of Easter in 2025. Financial leverage remained at comfortable levels at the end of March, with total net debt to EBITDA of 2.9x, or 2.7x on a proforma basis, incorporating Druni's full-year EBITDA contribution.

Worten

100% stake, fully consolidated

Worten posted a solid topline evolution in 1Q, outperforming the electronics market in Portugal and gaining market share both offline and online. Despite a challenging environment with intensified promotional activity and an unfavourable calendar effect, turnover increased by 4.2% yoy to €323m, supported by a robust LfL of 4.1%, underscoring the uniqueness of Worten omnichannel model.

Worten posted healthy turnover performances across all segments: (i) core categories (electronics and home appliances) recorded resilient volumes increases, (ii) new product categories grew at double digit and (iii) services, one of Worten strategic growth avenues, saw iServices maintain its positive momentum.

The online channel recorded significant growth in the quarter (+18.7% yoy), leveraging on Worten marketplace, and representing already 18.6% of total turnover in 1Q25.

In 1Q25, uEBITDA reached €12m, with a margin of 3.8% (4.7% in 1Q24), reflecting pressure from a higher cost base to support strategic growth initiatives (mainly impacting logistics and staff), alongside broader inflationary pressures on rents.

Regarding footprint expansion, a highlight to iServices that continued to successfully expand its presence both domestically and internationally. In 1Q25, Worten opened 10 new iServices stores, mostly abroad, ending the quarter with 64 stores in Portugal, 21 in Belgium, 11 in France and 7 in the Canary Islands.

Musti

c.81% stake, fully consolidated

Musti reported its 1Q25 results to the market on May 21st before market opening, showcasing resilience and continued momentum despite a challenging consumer environment.

The company strengthened its position as the leading omnichannel player across the Nordic markets, while recording growth in both its customer base and average spend per customer. During the period, the company also successfully progressed with the integration of Pet City, following its acquisition in November, further solidifying its growth platform in the Baltics.

Musti achieved sales of €120m in 1Q25 (January 1st – March 31st, 20251 ), representing a 11.8% increase over the same period last year, driven by the consolidation of Pet City and a positive performance across its Nordic operations. Even on an organic growth basis, excluding the impact of Pet City, sales would still have grown by a robust 3.8% yoy. LfL sales growth reached 1.2%, or 2.4% in comparable terms (excluding the leap year effect).

Musti's online channel continued to gain traction, with sales increasing by 6.6% yoy, while accounting for 24.0% of total sales (25.1% in 1Q24). This reflects the company's ongoing investment in digital capabilities and omnichannel integration.

Amid a demanding operating setting, underlying EBITDA reached €13m with a margin of 10.6% (€15m and 14.0% in the same period last year), impacted by the pressure in gross margin, due to targeted investments in price and campaign activities, and inflation.

Further details can be found in the company's website available here.

Real Estate

Sierra

100% stake, fully consolidated

Sierra delivered a strong start to 2025, posting solid financial results underpinned by resilient growth in its European shopping centre portfolio, continued execution of its strategy in third-party services, and meaningful progress across its development pipeline, including successful projects commercialization.

During 1Q25, Sierra's European shopping centre portfolio maintained a robust momentum, highlighting once again its resilience and quality, with tenant sales continuing its growth trajectory, strong occupancy at 98.2% and solid collection rates. As a result, rental growth continued to catch-up with historical sales trends, while the occupancy cost ratio stayed healthy and below pre-pandemic levels.

In the services segment, Sierra continued to implement its diversification strategy, and experienced notable growth.

Developments activity remained robust, with steady progress across all five construction projects and successful execution of their commercialization strategies, including the full sale of residential units at Republica 5 project. Sierra is also advancing with three additional projects in licensing phase, including its first build-to-sell in Spain and first build-to-rent in Portugal, continue expanding in the living sector.

In 1Q25, Sierra's net result rose to €29m (+€15m yoy), fuelled by the positive operational performance in both the shopping centre portfolio and services. NAV reached €1.1bn at the end of March, up by €73m yoy and €39m qoq.

¹ Musti's financial year is calendar year, following the changes occurred in the previous quarter to ensure alignment with Sonae's financial year. 1Q24 refers to the period January 1st – March 31st, 2024. In Sonae's accounts, Musti was only consolidated from March 2024 onwards.

Telco & Technology

Sonae's investments in the Telco & Technology areas are concentrated in Sonaecom which published its 1Q25 results on May 14th. Further details on these areas' performance can be found at Sonaecom's announcement available here.

NOS

37.4% stake, equity consolidated2

NOS reported its 1Q25 results to the market on May 6th, which were marked by a strong performance of its core Telco business and the completion of the acquisition of Claranet Portugal, a significant milestone in strengthening its value proposition in the B2B segment.

Consolidated revenue grew by 4.5% to €421m in 1Q25, driven by the strength of the Telco operations and the positive performance of the Cinema exhibition & Audiovisual business. Consolidated EBITDA increased by 4.3% to €192m, with a slight EBITDA margin compression of 0.1pp to 45.6%, due to the increase in low-margin resale revenue. Excluding resale-related revenues and costs, EBITDA margin expanded by 0.1pp to 46.3%. Further details are available on the company's website here.

On Sonae's consolidated accounts, NOS equity method results reached €19.8m in 1Q25, vs. €23.8m in 1Q24, highly influenced by extraordinary effects recorded last year relating to activity fees from Anacom following a favourable court ruling.

Already in April, NOS held its AGM and the Board of Directors approved a proposal to distribute an ordinary dividend of €0.35 per share (in line with last year), and an extraordinary dividend of €0.05 per share, relating to 2024 results. The dividend was paid on April 24th and resulted in a €77m cash-in for Sonaecom.

Corporate information

Main announcements during 2025 are published in www.sonae.pt/en/ and www.cmvm.pt (market regulator).

Subsequent events

April 4th: Sonae SGPS, SA informed on transactions by Persons Discharging Managerial Responsibilities. April 30th: Sonae SGPS, SA informed on Resolutions taken at the Shareholders Annual General Meeting.

April 30th: Sonae SGPS, SA informed on dividend payment.

² Total stake through Sonaecom (90% held by Sonae).

Consolidated Accounts (€m)

Income Statement	1Q24	1Q25	yoy
Turnover	2,081	2,553	22.7%
Underlying EBITDA	158	218	37.6%
margin	7.6%	8.5%	0.9 p.p.
Equity method results*	35	34	-3.7%
Sierra	13	12	-2.2%
NOS	24	20	-16.9%
Others	-1	2	-
Non-recurrent items	-14	-2	88.4%
EBITDA	180	250	39.2%
margin	8.6%	9.8%	1.2 p.p.
D&A and Provisions and Imp.	-105	-144	-38.1%
EBIT	75	106	40.9%
Net Financial results	-35	-47	-36.8%
Taxes	-8	-10	-24.1%
Direct result	33	49	49.2%
Indirect result	2	7	-
Net result	35	55	59.1%
Non-controlling interests	-11	-13	-18.1%
Net result group share	24	43	77.2%

* Equity method results: include direct income by equity method results (Sierra and NOS), income related to investments consolidated by the equity method and discontinued operations results.

Note: The consolidated financial information contained in this report was prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. The financial information regarding quarterly and semi-annual figures was not subject to audit procedures.

Balance Sheet	Mar.24	Dec.24	Mar.25
Investment properties	327	337	338
Net fixed assets	2,500	3,070	3,059
Right of Use assets	1,269	1,526	1,507
Financial investments	2,145	2,048	2,103
Goodwill	1,269	1,412	1,413
Working capital	-1,069	-1,328	-995
Invested capital	6,441	7,065	7,423
Equity & minorities	3,525	3,741	3,796
Net debt	1,437	1,572	1,891
Net financial debt	1,459	1,571	1,892
Net shareholder loans	-22	1	-2
Lease liabilities	1,479	1,753	1,737
Sources of financing	6,441	7,065	7,423

	Cash flow

Cash flow	L12M Mar.24 0	L12M Mar.25 0
EBITDA	1,011	1,105
Other operational flows **	-544	-534
Working capital var. and others	92	42
Operational capex	-446	-466
Operational cash flow	113	147
Net financial activity	-43	-92
M&A capex	-766	-481
Sale of assets	335	102
Dividends received	87	117
FCF before dividends paid -275		-207

FCF before dividends paid	-275	-207
Dividends received	87	117
Sale of assets	335	102
M&A capex	-766	-481
Net financial activity	-43	-92
Operational cash flow	113	147
Operational capex	-446	-466
Working capital var. and others	92	42
Other operational flows **	-544	-534
EBITDA	1,011	1,105

**Other operational flows = - Equity Method results + Rents - Capital Gains + Taxes

Glossary

Capex	Investments in tangible and intangible assets and investments in acquisitions. For NOS it includes right of use.
Cash-on-cash ratio	Exit value of the investment divided by the initial investment.
Direct result	Results before non-controlling interests excluding contributions to indirect results.
(Direct) EBIT	Direct EBT - financial results.
EBITDA	Underlying EBITDA + equity method results + non-recurrent items.
EBITDA margin	EBITDA / turnover.
Indirect result	Includes Sierra's results, net of taxes, arising from: (i) investment property valuations; (ii) capital gains (losses) on the sale of financial investments, joint ventures or associates; (iii) impairment losses of non-current assets (including goodwill) and (iv) provision for assets at risk. Additionally and concerning the remaining Sonae's portfolio, it incorporates: (i) impairments in retail real estate properties; (ii) reductions in goodwill; (iii) provisions (net of taxes) for possible future liabilities and impairments related with non-core financial investments, businesses, assets that were discontinued (or in the process of being discontinued/repositioned); (iv) results from mark to-market methodology of other current investments that will be sold or exchanged in the near future and from other related income (including dividends); and (v) other non-relevant issues.
Investment properties	Shopping centres in operation owned and co-owned by Sierra.
Lease Liabilities	Net present value of payments to use the asset.
Like for Like sales (LfL)	Sales made by omnichannel stores that operated in both periods under the same conditions. Excludes stores opened, closed or which suffered major upgrade works in one of the periods.
Loan to Value (LTV) – Holding	Holding net debt (average) / NAV of the investment portfolio plus Holding net debt (average).

Market value of each Sonae's businesses – average net debt – minorities (book value). Sonae's NAV is based on market references, such as trading multiples of comparable peers, external valuations, funding rounds and market capitalisations. Valuation methods and details per business unit are available in Sonae's Investor Kit at www.sonae.pt.

Loan to Value (LTV) – Sierra	Total debt / (Investment properties + properties under development), on a proportional basis.
INREV NAV Sierra	Open market value attributable to Sierra - net debt - minorities + deferred tax liabilities.
Net asset value (NAV) of the investment portfolio	Market value of each Sonae's businesses – average net debt – minorities (book value). Sonae's NAV is based on market references, such as trading multiples of comparable peers, external valuations, funding rounds and market capitalisations. Valuation methods and details per business unit are available in Sonae's Investor Kit at www.sonae.pt.
Net debt	Bonds + bank loans + other loans + shareholder loans - cash - bank deposits - current investments - other long-term financial applications.
Net financial debt	Net debt excluding shareholders' loans.
Net invested capital	Total net debt + total shareholders' funds.
Other loans	Bonds and derivatives.
Right of use (RoU)	Lease liability at the beginning of the lease adjusted for, initial direct costs, advance rent payments and possible lease discounts.
Total Net Debt	Net Debt + lease liabilities.
Total Shareholder Return (TSR)	Profit or loss from net share price change, plus any dividends received over a given period.
Underlying EBITDA	Recurrent EBITDA from the businesses consolidated using the full consolidation method.
Underlying EBITDA margin	Underlying EBITDA / turnover.

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 should not be regarded as 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, industry and economic conditions; and the effects of competition. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors and analysts, and generally all 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.

Investor Relations Contacts

Vera Bastos Head of Investor Relations vcbastos@sonae.pt +351 22 010 4794

Media Contacts

Maria João Oliveira External Communication majfoliveira@sonae.pt +351 22 010 4000

Sonae

Lugar do Espido Via Norte 4471-909 Maia, Portugal +351 22 948 7522

www.sonae.pt

Sonae is listed on the Euronext Stock Exchange. Information may also be accessed on Reuters under the symbol SONP.IN and on Bloomberg under the symbol SON PL