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RESULTS ANNOUNCEMENT 20197

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

1. Main Highlights

Consolidated turnover of 132.4 million euros increasing 21.1% y.o.y, or 3.8% on a comparable basis

NOS presenting 1.5% y.o.y growth in Consolidated Revenues and EBITDA growing above revenues

Technology revenues reaching 115.8 million euros, growing 24.8% on a comparable basis, and with International markets weighting more than 40%

Total EBITDA reaching 30.5 million euros, positively impacted by the capital gain generated with WeDo and Saphety's sale

೭. Sonaecom Consolidated Results

Introductory notes:

As from 1Q19, Sonaecom's accounts are reported applying IFRS 16, primarily of operating lease contracts. Restated values for the corresponding periods in 2018 are presented in this report.

On Morchand August, Sonae M sold the total of Saphety and WeDo, respectively, Subsequent to these operations, Sonaecom odjusted the 2018 and the 1H19 profit and loss statements on a pro-forma boss, assuming Sophety and WeDo contribution as a discontinued operation since January 2018.

Telecommunications area, which includes a 50% stake in ZOPT - consolidated through the equity method – which owns 52.15% stake in NDS, presented a good you, growth in consoliated revenues albeit lighter than previous quarter due to slower Cinema and Audiovisuais revenue growth. Presented a solid RGU growth in 4019 with mobile showing particularly good growth and TV posting robust quarterly numbers. Showed an EBITDA growth above revenues refliciencies partially driven by transformation programme and a FCF lower due to seasonal working capital movements albeit improving y.o.y..

During 2019, Technology area, besides reinforcing its participation in some portfolio companies, has entered in the capital of seven new companies, three of which in early stage.

Also in 2019, and aligned with its active portfolio management strategy, Sonae IM sold 100% of its Saphety's of management team, backed by Oxy Capital and sold 100% of its WeDo's shares to Mobileum, Inc..

Turnover

Consolidated turnover in 2019 reached 132.4 million euros, increasing 21.1%, when compared to 2018, on a comparable basis, assuming the same portfolio companies in both periods.

This positive evolution was driven by both Media and Technology area, the latter presenting a growth of 24.8%, on a comparable basis.

Operating costs

Operating costs amounted to 144.8 million euros, 25.2% above 2018. reflecting the increase in the increase in the average number of employees, driven by the consolidation of Nextel and Excellium. Commercial costs increased 15.1% to 74.6 million euros, mainly driven by the higher cost of goods sold, aligner level of sales. Other operating costs increased 22.6%, mainly explained by the higher level of Outsourcing costs, also explained by the consolidation of Nextel and Excellium.

EBITDA

Total EBITDA stood at 30.5 million euros, including non-recurrent itens of 11.5 million euros corresponding to the net capital gain generated by Saphety and WeDo's sale net of non-recurrent costs of €2.1 million euros.

The capital gain generated with WeDo is based only on the fixed amount of 70 million USD and deducted from transaction related costs. The total price also includes a variable and deferred component depending on the combined businesses, until 31 December 2021, with a maximum value of 27 million USD.

In 2018, the non-recurrent items stood at 38.3 million by the capital gain generated with Dutsystems financing round.

The equity results, mostly driven by ZDPT contribution which, in turn, depends on NDS net income evolution, decreased to 27.9 million euros. Underlying EBTDA stood at negative 7.8 million euros versus 2018, strongly impacted by the negative contribution of the new consolidated companies.

Net results

Sonaecom's EBIT decreased to 20.3 million in 2018, explained by the lower level of EBITDA and the higher level of depreciations.

Net financial results stoodat negative 0.1 million euros in 2019 that compares with positive 0.2 million in the previous year.

Sonaecom's earnings before tax (EBT) decreased from 60.3 million euros, driven by the lower EBIT and financial results.

Indirect results reached 27.1 million euros with 15.1 million euros in 2018, impacted by Armilar Venture Funds' portfolio fair value adjustments.

Net results group share stood at 51.5 million euros, below the 69.0 million euros presented in 2018.

Operating CAPEX

Sonaecom's operating CAPEX increased to 10.4 million euros, reaching 7.9% of turnover, 11 p.p. above 2018. Excluding the IFRS 16 impact, operating CAPEX would be 4.9 million euros, 1.3 million euros above 2018, also without IFRS 16.

Capital structure

The net cash position stood at 236.5 million euros ince December 2018. Excluding FRS 16 impacts, Net cash position stood at 250.6 million above December 2018, driven by the 47.0 million euros of dividends from ZDPT and the 36.9 million of positive net inflow from investment activity, and despite the 34.2 million euros of dividends distribution and the negative operating cash flow of 17.9 million euros.

2.1 Telecommunications

NOS operating revenues were 1,599.2 million euros in 2019, growing 1.5% u.o.u..

EBITDA reached 641,1 million euros, increasing 2.7% when compared to 2018 and representing a 40.1% EBITDA margin. CAPEX excluding leasings amounted to 374.4 million euros in 2019, an increase of 0.1% you. As a consequence of EBITDA and CAPEX evolution, EBITDA- CAPEX increased 6.5%.

At the end of 2019, total net debt including learn contracts (according to IFRS 16) amounted to 1,347,3 million euros. Net Financial Debt/EBITDA after lease payments (last 4 quarters) now stands at 1.9x EBITDA, and with an average maturity of 3.1 years.

NOS published its 2019 results on 21ft February 2020, which are available at www.nos.pt.

During 2019, NOS share price decreased 9.3% from €5.295 to €4.800, whilst PS120 increased by 10.2%.

Operational Indicators

Million euros
Operational Indicators ('000)	4018 (k)	4019	ﺍﻟﻤﺮﺍﺟﻊ	3019	Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q. Q.O.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.Q.	2018 ជា	2019	ﺔ 19/18
Total RGUs	9.580.4	9.722.7	1.5%	9.653.0	0.7% -	9.580.4	9.722.7	15%
Convergent + Integrated RGUs	4.482.8	4.704.5	4.9% -	4.622.1	1.8%	4.482.8	4.704.5	4.9%

Financial indicators

Million euros
NOS HIGHLIGHTS	4018 (k)	4019	ﺔ ﺍﻟﻤﺮﺍﺟﻊ	3019	q.o.q.	2018 (K)	2019	ﺍﻟﻤﺮﺍﺟﻊ
Operating Revenues	408.9	414.0	1.3%	403.4	2.6%	1,576.2	1599.2	1.5%
FRITDA	132.6	135.7	74%	173.4	-21.7%	6243	6411	2.7%
EBITDA margin (%)	52.4%	32.8%	0.3pp	43.0%	-10.2pp	39.6%	40.1%	0.5pp
Net Income	12.7	5.4	-57.3%	479	-88.7%	137.8	143.5	4.2%
CAPEX excluding Leasings	94.3	99.7	5.7%	92.2	8.1%	373.8	374.4	0.1%
EBITDA-CAPEX excluding Leasings	38.3	36.0	-6.0%	81.2	-55.6%	250.5	266.7	6.5%

(R) The values were restated in order to reflect IFRS16 applicationimpacts

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 currently compises, Bright Pixel and Vector I fund, four controlled companies – S21Sec, Bizdirect, hovetail and Excellium- that generated circa 40.6% of its revenues outside the Portuguese market with 70.9% out of the total 673 employees based abroad.

Controlled Companies

S21Sec is a reference multinational MSSP (Managed Security Services Provider), focused on the delivery of cyber security services and development of proprietary supporting technologies, with a global customer its teams in Spain, Portugal and Mexico. Since June 2018, with the integration of Nextel, SZISec 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. Sonae IM investment, at the end of 2018, was aimed both at accelerating growth through a capital of a majority stake.

This investment, together with the stake on 521sec, turns Sonae M's cubersecurity group as one of the most relevant upersecurity services pure players in Europe, counting with more than 500 professionals and direct presence in 13 cities across 6 countries.

The significant European scale and cross-country presence of this group of cybersecurity companies will be key to address the increasingly 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 specialization, commercialization, consulting and management of corporate software licensing contracts and Microsoft solutions integration.

During 2019, the cloud business unit continued to improve its presence on helping customers in digital transformation and the solutions business unit achieved important new customer ce Center, in Viseu, contributed to the international revenues that already represent 6.2% of total revenues.

lnovRetail is a retail innovation company that provide data science solutions and digital tools that deliver quantifiable insights and actionable recommendations with direct and sustainable impact on retrics. The company'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 a company builder studio whose goal is to transform the way companies address innovation. Bright Pixel is managing a venture lifecycle going from experimentation and lab phases that have the objects that should be brewed in its incubation program. Bright Pixel invests and supports the development of internally brewed projects as well as assisting their first batch of invited startups in their product development roadmap and market rollout.

Bright Pixel is also investing in events, like its activity to the tech community as well as promoting a close relationship with its partners, by developing quick proof of concepts aimed at resolving technology and business needs in themes such as retail, media, cyber-security and telecommunications.

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 campany, 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 clients to quickly detect and contain threats. US technology investors Lightspeed Venture Partners and Redpoint were joined by Sonae IM and Knollwood Investment Advisory in the 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 D round, which was closed in the beginning of 2020, at a significant higher valuation. Sonae IM participated in both rounds, reinforcing its stake.

Stylesage is a strategic analytics SaaS platform that helps fashion, home 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 customer marketing platform with the vision the central hub that powers all the communication between retailers and their customent was done by Sonae M 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, Miching. 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 M 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 instrum cyberthreats 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 organization with unparallele insights to protect their various assets in the ever evolving cyber threatscape. Sixgill raised \$15M in a second round led by Sonae M 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 anaysis 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 disuptive 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 agle 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 series B round of \$15M led by Deutsche Telekom Capital Partners.

Secucloud is a Germany based company that provides a cloud security platform for protecting 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.

Continuum Security is a Spanish based company with an application to address vulnerabilities early in the development process. In order to realise their international growth plans, the company has raised an investment round of 1.5million euros, which was led by Swaanlaab Venture Factory and joined by JME Venture Capital and Sonae IM.

Iscrambler 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 Copitol Empreender Award 2017, has stepped from MVP (minimum valuable product) to an independent Web Application Security startup.

Financial indicators

Million euros

TECHNOLOGY AREA	4Q18 (R)	4019	v 19/18	ਤਹੀਰ	q.o.q.	2018 (R)	2019	v 19/18
Turnover	26.3	25.5	-3.0%	24.0	6.3%	92.7	115.8	24.8%
Service Revenues	8.7	10.5	20.8%	11.1	-5.5%	28.5	41.9	47.1%
Sales	17.6	15.0	-14.8%	12 g	16.6%	64.3	73.9	15.0%
Other Revenues	0.6	0.6	-5.0%	0.4	55.5%	0.9	1.6	75.2%
Operating Costs	27.0	28.4	5.5%	26.0	9.3%	95.1	124.4	30.9%
Personnel Costs	6.2	ਰ ਤੋ	50.1%	9.4	-0.6%	21.4	36.2	68.9%
Commercial Costs4)	16.6	13.8	-16.7%	12.2	13.4%	61.2	70.9	15.8%
Other Operating Costs (2)	4.1	5.3	27.8%	44	18.9%	125	17.4	39.7%
Underlying EBITDA(5)	0.0	-0.2		-1.7	85.8%	-1.4	-4.9
Underlying EBITDA Margin (%)	-0.1%	-0.9%	-0.8pp	-6.9%	6.0pp	-1.5%	-4.3%	-2.7pp
Operating CAPEX(4)	3.7	2.8	-225%	0.8		6.4	6.9	9.1%
Operating CAPEX as % of Turnover	13.9%	11.1%	-2.8pp	3.3%	7.9pp	6.9%	6.0%	-0.9pp
Underlying EBITDA - Operating CAPEX	-3.7	-3.1	16.7%	-2.4	-25.8%	-7.8	-11.9	-52.8%
Total CAPEX	25.8	12.5	-51.7%	8.1	53.9%	43.3	37.6	-13.2%

(1) Commercial Costs = COSS + Mtg& Sales; (2) Other Dperies + G&A + Provisios + others; (3) hcludes the businesses filly consoliated at Technology are; (4) Operating CAPEX excludes Financial Investments (1) The value in reflect FRSS6 application impacts and Sonaecom structure after Saphety and WeDs sale.