SUMACCOM

SONAECOM

MANAGEMENT REPORT & ACCOUNTS

1021

The consolidated financial in this report is based on unaudited financial statements, prepored n ccordance with the urgen Union.

I MANAGEMENT REPORT
	1. Main Highlights
	2. Sonaecom Consolidated Results
	2.1 Telecommunications
	2.2 Technology
	2.3 Media
	3. Subsequent Events
	4. Appendix

II FINANCIAL STATEMENTS

5. Condensed Financial Information	13
5.1. Sonaecom condensed consolidated financial statements	13
5.2. Notes to the condensed consolidated financial statements of Sonaecom	18

I – MANAGEMENT REPORT

1. Main Highlights

Services revenues increasing 2.3% y.o.y., partially offsetting the decrease on Product sales

Strong EBITDA evolution highly impacted by equity results from ZOPT

Telco operating performance at NOS remained on track in a quarter marked by full lockdown

Technology area with solid growth and profitability improvements at cybersecurity companies

Net Income of 10.6 million euros, showing a strong improvement y.o.y

2. Sonaecom Consolidated Results

Introductory notes:

COVID 19

On 2021 January 7th, following the worsening pandemic situation with a higher transmission rate and an increased number of deaths, it was formally declared a new state of emergency and a new national lock-down which marked almost the full on March 11th, the Portuguese Government approved a gradual eased on risk evolution and, already in April, such emergency level was reduced.

The Board of Directors continued to follow in detail and with great concernic developments, following closely the position of the competent international entities, namely the World Heath Organization and the European Centre, as well as the Portuguese Directorate-General of Health.

Aligned with the Group's Risk Management Policies, contingency plans with correspondent mitigation were constantly updated and actioned across all companies and departments, allowing to keep our employees protected and to face of of value.

The financial and operational impacts continued to be different across segments:

· The technology area continued to prove a strong resilience with no relevant impacts from pandemic situation;
· At NOS, the impacts were felt particularly in Roaming and in the Cinemas and Audiovisuals activity with the closing of all cinemas during the full quarter, which inevitably impacted consolidated revenues and EBITDA evolution;
· Público's activity continued to face lower levels of advertising activity.

Overall, the macroeconomic context remains uncertain and intrinsically dependent on the eniment on control, on governmental intervention to comply with vaccination plans, as well as on the support provided to the overall economy.

However, given the company's capital structure, with a significant amount in cash and a low amount of remunerated debt, no material changes in the Company's liquidity are expected. Furthermore, we will continue to implement all measures appropriate to minimize their impacts, in line with the recommendation of the best interest of all our stakeholders.

Telecommunications area, which includes a 50% stake in ZDPT - consolidated through the equity method – which owns 52.15% stake in NDS, despite being strongly impacted by CDVD 19 pandemic, namely with a significant reduction of revenues from roaming and from Cinema & Audiovisuals business, continued to demonstrate a marked resilience its core telecom operations.

The growing take-up of data and IT solutions, with particular focus on cloud-based and "as-a-service" solutions, project consultancy and equipment sales, boosted the growth of the B2B segment.

Core telecom business recorded a solid growth is even more relevant in a like for like comparison, as yearly comparisons are still impacted by the fall in roaming revenues (first lockdown was implemented on March 18th performance in telco revenues was offset by the negative impact of Cinemas given the complete closure of cinema theatres since January 15th

Investment levels continued to reflect the FttH deployment and the preparation of mobile network for 5G launch, frequencies are attributed. 55 spectrum auction is still ongoing after more than three visibility on timing due to unprecedent regulatory framework.

During 1Q21, Technology area continued to entering in the capital of a new retail tech company and reinforcing its investment in some portfolio companies. The quarter was also marked by relevant achievements in some of its minority held through Armilar funds: i) Feedzai, that announced a series Dround with an implicit valuation that turned the company into a unicorn; and ii) Dutsystems that reached an unicom valuation back in 2018, announced a 150 million dollars capital and Tiger Global, at an underluing valuation of 9.5 billion dollars. The latter, despite being a relatively small transaction, it is a good sign of the company's strong evolution.

Turnover

Consolidated turnover in 1Q21 reached 26.5 million euros, decreasing 9.6%, when compared to 1Q20. The growth of services, mainly cybersecurity services, was fully offset by the transactional business of third-party products and the newspaper sales on Media business.

Operating costs

Operating costs amounted to 27.7 million euros, 13.4% below 1Q20. Employee benefits expenses decreased costs decreased 20.5% to 11.6 million euros, mainly driven by the lower cost of goods sold, aligned with the lower level of sales. Other expenses decreased 14.2%, mainly explained by the lower level of Outsourcing costs.

EBITDA

Total EBITDA increasing from negative 5.2 million euros, mainly explained by the increase on equity results, mostly driven by ZOPT contribution which, in turn, depends on NOS net income evolution, but also by Underlying EBITDA that presented relevant improvements, especially at Cybersecurity companies.

Net results

Sonaecom's EBIT increased to 4.3 million euros, from negative 5.5 million in 1Q20, explained by the higher level of depreciations.

Sonaecom's earnings before tax (EBT) increased from negative 4.4 million euros, driven by the higher EBT and financial results.

Indirect results reached 5.4 million euros with 0.2 million euros in 1Q20, impacted by portolio fair value adjustments, mainly the upwards revisions at Armilar Venture Funds.

Net results group share stood at 10.6 million euros, above the negative 4.5 million euros presented in 1Q20.

Operating CAPEX

Sonaecom's operating CAPEX decreased to 1.1 million euros, reaching 4.3% of turnover, 0.2 p.p. below 1Q20. Excluding the IFRS 16 impact, operating CAPEX would be 0.7 million euros, in line with 1Q20.

Capital Structure

The net cash position stood at 210.2 million euros since December 2020. Excluding leasings, Net cash position stood at 224.3 million euros, 5.7 million below 2020, mainly driven by 2.8 million euros of investment cash-out and the negative operating cash-flow of 2.8 million euros.

2.1 Telecommunications

NOS operating revenues were 337.4 million euros in 1Q21, decreasing 2.3% y.o.y..

EBITDA reached 152.2 million euros, decreasing 0.4% when compared to 1Q20 and representing a 45.1% EBITDA margin.

CAPEX excluding leasings amounted to 96.0 million euros in 1021, an increase of 8.7% you. As a consequence of EBITDA and CAPEX evolution, EBITDA- CAPEX decreased 12.8%.

At the end of 1Q21, total net debt including leasings and long-term contracts (according to IFRS 16) amounted to 1,343.8 million euros. Net Financial Debt/EBITDA after lease payments (last 4 quarters) now stands at 1.5x EBITDA, and with an average maturity of 2.3 years.

NOS published its 1Q21 results on 11th May 2021, which are available at www.nos.pt.

During 1Q21, NOS share price increased 8.6% from €2.858 to €3.104, whilst PSI20 increased by 0.6%.

Operational Indicators

Million euros
Operational Indicators ('000)	1020	1021	‍	4020	0.0.0.
Total RGUs	9.695.3	9.902.2	21%	9.919.1	-0.2%
Convergent + Integrated RGUs	4.754.6	5.002.0	5.2%	4.956.0	0.9%

Financial indicators

Million euros
NOS HIGHLIGHTS	1020	1Q21	A 21/20	4Q20	d.o.q.
Operating Revenues	345.4	337.4	-2.3%	354 3	-4.8%
EBITDA	152.7	152.2	-0.4%	152.0	15.3%
EBITDA margin (%)	44.2%	45.1%	0.9pp	37.5%	7.8pp
Net Income	-10 4	30.5		12.9	137.2%
CAPEX excluding Leasings	88.2	96.0	8.7%	115.4	-16.8%
EBITDA-CAPEX excluding Leasings	64.5	56.2	-128%	16.6

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 comprises, alongside with minority stakes, Bright lnnovation funds, four controlled companies – S21Sec and Excellium (Maxive Cybersecurity Group), Bizdirect and Inovretail- that generated more than 50% of its revenues outside the Portuguese market with 71.8% out of the total 642 employees based abroad.

Controlled Companies

Maxive Cybersecurity is the strategic holding company that combines two of the leading cybers in Europe and is positioned as one of the largest MSSPs (Managed Security Services Provider) pure players and specialized personnel offering its customers a wider set of services and capabilities from both S21sec and Excellium:

S21Sec is a reference multinational MSSP, focused on the delivery of cyber security services and development of proprietary supporting technologies, with a global customer base, leveraging its teams in Spain, Portugal and Mexico. Since June 2018, with the integration of Nextel, S21Sec is the most relevant "pure player" (company specializing exclusively in the cybersecurity sector) in Spain and Portugal in terms of turnover and number 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.

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.

The cloud business unit continued to improve its presence in digital transformation and the solutions business unit achieved important new customer references. Bizdirect Competence Center, in Viseu, contributed to the international revenues.

InovRetail is a retail innovation company that provides data science solutions and digital tools that insights and actionable recommendations with direct and sustained 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 the early stage investor of Sonae IM group focused on prioritizing links to retail, telco and cybersecurity.

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 company, 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. Sonae M, jointly with US technology investors Lightspeed Venture Partners and Redpoint, entered in the company's cap table in 2017 in a 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. In October 2020, the company announced it has raised \$200 million in Series E funding at a valuation of \$1.3 billion. The funding round was led by Viking Global Investors, with additional participation from DTCP and existing investors. Sonae IM participated in all 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' commerce websites from around the world. Then, with groundbreaking technology in machine learning and visual recognition, StyleSage cleans, organizes, and analyzes the massive amounts of collected data into a cloud-based dashboard that empowers brands 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 to become the central the communication between retailers and their customent was done by Sonae IM 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 B round.

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 \$16M round, led by Joining. 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 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 delivers intelligent imat shorten the path to action 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 Viseo to turn any image or video into an engagement 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 M 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 IM 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.

and surface webs. The advanced cuber threat intelligence platform automates all phases of the intelligence cucle - collection, analysis and dissemination of data — providing organizations with unparalled 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 analysis 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 agile 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 55 adoption. Sonae IM invested in a round of \$15M led by Deutsche Telekom Capital Partners. In November 2020, the company announced a \$32 million Series B funding round led by Intel Capital and Qualcomm Ventures LLC with participation from Verizon Ventures, Samsung Next, and existing shareholders.

Secucloud is a Germany based company that provides a cloud security all devices (subscriber endpoints) 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.

lriusRisk (previously named Continuum Security) is a Spanish based company with an application to address vulnerabilities early in the development process. In order their international growth plans, the company has raised an investment round of 1.5 million euros, which was led by Swanlaab Venture Factory and joined by ME Venture Capital and Sonae IM. In September 2020, the company raised a series A round of 6.7 million dollars participated by Paladin, 360 CP, Swanlaab IME Venture IM.

Iscrambler is a Portuguese startup that develops a security solution to protect Web and Mobile Applications (Javascript 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 Copital Empreender Award 2017, has stepped from MVP (minimum valuable product) to an independent Web Application Security startup.

Sales Layer is a Spanish based company with a cloud-tased PlM) platform, helping brands and retailers to transform their catalogs into a digital, enriched and multichannel control center. Sonae IM recently led its series A round.

Deepfence is a leading US-losed doud-native workload protection platform that aims to platform for kubernetes, virtual machines and serverless worklass continuity in the face of persistent threats by detecting and disupting sophisticated attacks targeting cloud-native that keeps the current world connected. Deepfence raised \$9.5 million in Series A financing led by AllegisCyber, with participation from Sonae IM, and existing investor Chiratae Ventures.

Weaveworks is a US company that helps teams to adopt cloud native infrastructure and applications quickly, reliably and at scale. Weaveworks announced a \$36.65 million Series C funding round led by some of the world's leading public cloud and telecommunications companies, including first-time investors AWS), Ericsson, Orange Ventures, Sonae IM and Telekom Investment Pool (TIP). The round also included follow-on investments from Accel, GV, and Redline Capital.

Sellforte, based in Helsink, Finland, is a SaaS platform for Retailers, Brands and Telcos, which uses proprietary data science and Al to measure the effectiveness of online and offline marketing investments.

Financial indicators

Million euros

TECHNOLOGY AREA - INCOME STATEMENT	1020	1021	മ 21/20	4Q20	d.o.q.
Turnover	25.7	23.5	-8.5%	25.5	-7.7%
Services Rendered	11.0	115	4.1%	118	-2.8%
Sales	14.7	12 1	-179%	13.7	-12.0%
Other Income	03	0.4	41.5%	1.6	-77.5%
Operating Costs	275	23.8	-13.7%	26.3	-9.7%
Employee Benefits Expenses	8.9	8.5	-4.8%	ਰ ਰ	-14.0%
Commercial Costs(1)	14.0	11 3	-19.1%	12 g	-125%
Other Expenses(2)	4.6	ਤੇ ਰੇ	-14.5%	3.5	125%
Underlying EBITDA(3)	-15	0.1		0.7	-85.4%
Underlying EBITDA Margin (%)	-5.7%	0.4%	6.1pp	27%	-2.3pp
Operating CAPEX(4)	1.1	0 d	-12.8%	1.4	-35.4%
Operating CAPEX as % of Turnover	4.1%	3.9%	-0.2pp	5.6%	-1.7pp
Underlying EBITDA - Operating CAPEX	-2.5	-0.8	67.3%	-0.7	-11.7%
Total CAPEX	4.8	3.8	-215%	14.0	-73.1%

(1) Commercial Costs = COGS + Mktg & Sales; (2) Other Expenses = Dutsourcing Services + others; (3) Includes the businesses fully consolidated at Technology area; (4) Operating CAPEX excludes Financial Investments.

Turnover

Turnover decreased 8.5% y.o.yexplained by the decrease on the transactional business of third-party prosented a growth when compared to 1Q20, mainly driven by cybersecurity services.

At the end of 2020, following a Microsoft's license agreement review between Bizdirect and one of its main customers, the contractual terms have changed, with Bizdirect maintaining its advisor partner mpact on revenues. On a like for like comparison, Turnover would have increased 4.3%.

Operating costs

Operating costs decreased 13.7% to 23.8 million euros mainly explained by the 19.1% decline at Commercial costs, aligned with the lower level of sales, and by the 14.5% decrease of Other expenses, mainly explained by the lower level of Outsourcing Costs.

Underlying EBITDA

Underlying EBTDA stood at 0.1 million euros, significantly better than 1Q20, driven by the relevant improvements in Cybersecurity companies.

Underlying EBITDA-operating CAPEX

Underlying EBITDA-operating CAPEX stood at negative 0.8 million euros, increasing when compared to the higher EBITDA but also driven by the lower level of Operating CAPEX. Excluding the IFRS 16 impacts, operating CAPEX would have reached 0.5 million euros, in line with 1Q20.

2.3 Media

Público continued to consolidate its position as the reference Portuguese speaking news organization focused on a digital strategy, reinforcing digital competencies and presence in online platforms.

Sirce the start of the pandemic and the related restrity was impacted, namely offline newspaper sales, with the temporary closure of the majority of sale, and advertising revenues, with the cut on marketing expenses implemented across al companies. However, the new context benefited the online business and allowed the company to record relevant improvements on online subscriptions and online advertising revenues, contributing to a positive evolution at EBITDA level.

The solid growth from online revenues was not enough to compensate the negative evolution from offline, resulting into an overall decrease in total revenues.

3. Subsequent events

In April 2021, following a secondary market transaction, the company sold part of its stake in Artic Wolf, resulting in a fross capital gain of circa 12.3 million euros and a gross cash-in of 36.4 million euros.

4. Appendix

Consolidated income statement

Million euros
CONSOLIDATED INCOME STATEMENT	1020	1021	മ 21/20	4Q20	q.o.q.
Turnover	29.4	26.5	-9.6%	29.6	-10.3%
Services Rendered	12.7	13.0	23%	14.0	-7.0%
Sales	16.6	13.5	-18.8%	15.6	-13.3%
Other Income	0 4	05	28.5%	18	-70.2%
Operating Costs	32.0	27.7	-13.4%	31.6	-12.2%
Employee Benefits Expenses	11 4	11.0	-3.8%	12.8	-14.2%
Commercial Costs(1)	14.6	11.6	-20.5%	13.7	-15.3%
Other Expenses (2)	6.0	5.1	-14.2%	5.1	1.3%
EBITDA	-3.3	6.2		3.4	81.4%
Underlying EBITDA(3)	-2.1	-0.7	68.9%	0.1
Non recurrent itens	-0.1		100.0%	-0.3	100.0%
Equity method(4)	-11	6.9		3.7	88.5%
Underlying EBITDA Margin (%)	-7.2%	-2.5%	4.7pp	0.2%	-2.7pp
Depreciation & Amortization	2.2	2.0	-10.0%	2.3	-11.9%
EBIT	-5.5	4.3		1.2
Net Financial Results	-0.5	0.2		0.0
Financial Income	0.7	0.6	-10.8%	0.8	-22.0%
Financial Expenses	1.2	05	-61.1%	0 ਰੇ	-45.0%
EBT	-6.0	444		1.1
Tax results	0.7	0.4	-421%	13.3	-96.9%
Direct Results	-5.3	4.8	-	14.4	-66.5%
Indirect Results(5)	0.2	5.4	-	16.8	-67.7%
Net Income	-5.1	10.3	-	31.2	-67.2%
Group Share	-4.5	10.6		31.4	-66.3%
Attributable to Non-Controlling Interests	-0.6	-0.3	50.0%	-0.2	-79.0%

(2) Commerial Coss - COGS + Weigins + others;
(2) Unterestes = UKs Sharecom:
(2) (neleste bestilling in Shake (2017) (1) Blog in E. S0% bolding in ZDF, the 50% holding in Al

Consolidated balance sheet

Million euros

CONSOLIDATED BALANCE SHEET	1020	1Q21	A 21/20	4Q20	d.o.q.
Total Net Assets	1,195.7	1,226.8	2.6%	1,247.5	-1.7%
Non Current Assets	898.5	954.6	6.2%	966.8	-1.3%
Tangible and Intangible Assets and Rights of Use	21 d	20.0	-8.9%	20.9	-4.3%
Goodwill	14 5	14.5	0.0%	14.5	0.0%
Investments	848.7	895.8	5.5%	907.4	-1.3%
Deferred Tax Assets	4.2	16.2		16.4	-0.9%
Others	91	81	-10.5%	7.6	7.0%
Current Assets	297.2	272.2	-8.4%	280.7	-3.0%
Trade Receivables	201	18.0	-10.5%	22.6	-20.3%
Liquidity	251.0	229.3	-8.6%	233.7	-1.9%
Others	26.1	24.9	-4.6%	24.4	2.0%
Shareholders' Funds	1,067.1	1,125.6	5.5%	1,114.5	1.0%
Group Share	1.068.2	1.112.8	4.2%	1,101.4	1.0%
Non-Controlling Interests	-1.0	128		13.1	-2.4%
Total Liabilities	128.6	101.3	-21.3%	133.0	-23.9%
Non Current Liabilities	71.3	428	-39.9%	71.5	-40.1%
Loans	3.1	19	-37.6%	2.1	-11.1%
Provisions	30.8	0.7	-97.6%	30.0	-97.5%
Others	37.4	40.2	7.3%	39.4	2.0%
Current Liabilities	57.3	58.4	2.0%	61.4	-4.9%
Loans	1.0	3.1		15	101.7%
Trade Payables	191	17.0	-10.7%	16.9	1.0%
Others	37.2	38.3	2.8%	43.0	-11.1%
Operating CAPEX(1)	13	11	-13.3%	4.0	-71.3%
Operating CAPEX as % of Turnover	4.5%	4.3%	-0.2pp	13.4%	-9.1pp
Total CAPEX	5.1	4.0	-21.2%	16.6	-75.9%
Underlying EBITDA - Operating CAPEX	-3.4	-1.8	47.6%	-3.9	54.1%
Gross Debt	18.5	191	3.2%	18.2	4.9%
Net Debt	-2325	-210.2	9.6%	-215 5	2.5%

(1) Operating CAPEX excludes Financial Investments.

Consolidated levered FCF

Million euros

LEVERED FREE CASH FLOW	1020	1021	‍	4Q20	q.o.q.
Underlying EBITDA-Operating CAPEX	-3.4	-1.8	47.6%	-3.9	54.1%
Change in WC	3.1	-11		54
Non Cash Items & Other	0.3	0.2	-45.3%	1 g	-91.6%
Operating Cash Flow	-0.1	-2.8		3.4
Investments	-3.7	-2.8	25.3%	-12.1	77.0%
Dividends	0.0	0.0		0.0
Financial results	-0.1	0.2		0 4	-497%
Income taxes	0.7	0.5	-28.6%	0.6	-24.0%
FCF(1)	-3.2	-4 9	-50.2%	-7.7	36.8%

[1] FCF Levered after Financial Expenses but before CapitalFlows and Financing related up-front Costs.

II - FINANCIAL STATEMENTS

5. Condensed Financial Information

5.1. Sonaecom condensed consolidated financial statements

Condensed consolidated statement of financial position

For periods ended on 31 March 2021 and 31 December 2020

Assets Non-current assets 1,930,340 2,034,408 Property, plant and equipment 7,828,723 Intangible assets 8,240,910 10,233,372 Right of use 10,609,677 Goodwill 14,520,952 14,520,952 ნ 789,133,618 Investments in joint ventures and associated companies 807,795,660 7 7,556,599 Financial assets at fair value through other comprehensive income 7,299,791 8 99,064,497 42,324,063 Financial assets at fair value through profit or loss Deferred tax assets 16,238,117 16,380,468 8,132,975 Other non-current assets 7,602,700 954,639,193 966,808,629 Total non-current assets Lurrent assets 247,807 Inventories 251,827 18,035,644 Trade receivables 22,616,717 8,287,063 Other receivables 8,314,544 1,857,702 Income tax assets 1,819,652 14,465,698 Other current assets 13,971,930 Cash and cash equivalents 229,311,441 233,707,494 272,205,355 Total current assets 280,682,164 Total assets 1,226,844,548 1,247,490,793 Shareholders' funds and liabilities Shareholders' funds 230,391,627 230,391,627 Share capital Own shares (7,686,952) (7,686,952) 879,533,337 Reserves and retained earnings 818,589,511 10,572,874 Consolidated net income/(loss) for the period 60,125,890 1,112,810,886 1,101,420,076 12,771,267 Non-controlling interests 13,080,206 1,125,582,153 Total Shareholders' funds 1,114,500,282 Liabilities































Non-current liabilities
Loans 1,908,051 2,146,527
Lease liabilities 10,558,733 11,072,814
Provisions 744,652 30,007,840
29,269,029 Deferred tax liabilities 28,054,313
359,160 Other non-current liabilities 264,105
42,839,605 Total non-current liabilities 71,545,599
Current liabilities
3,120,247 Loans 1,546,801 17,047,847
Trade payables 16,886,338 3,484,817 Lease liabilities
3,408,625 9,178,651
Other payables 9,639,257 25,591,228
Other current liabilities 29,963,891 58,422,790
Total current liabilities 61,444,912 Total Liabilities 101,262,395
132,990,511 Total Shareholders' funds and liabilities 1,226,844,548 1,247,490,793

The notes are an integral part of the condensed consolidated financial statements.

The Certified Accountant

Condensed consolidated income statement by nature

For periods of 3 months ended on 31 March 2021 and 2020

(Amounts expressed in Euro)	Notes	March 2021 (not audited)	March 2020 (not audited)
Sales	9	13,506,327	16,624,813
Services rendered	9	13,030,439	12,731,744
Other income		526,759	409,952
		27,063,525	29,766,509
Cost of sales		(11,242,195)	(14,110,262)
External supplies and services		(5,326,437)	(6,296,653)
Employee benefits expense		(10,989,166)	(11,425,442)
Amortisation and depreciation		(1,984,008)	(2,203,747)
Provisions		(61,763)	(104,743)
Other expenses		(100,059)	(64,217)
		(29,703,628)	(34,205,064)
Gains and losses in joint ventures and associated companies	ნ	9,463,056	(820,227)
Gains and losses on assets at fair value through profit or loss	8	4,120,434
Financial expenses		(474,785)	(1,220,047)
Financial income		640,573	717,744
Current income / (loss)		11,109,175	(5,761,085)
Income taxation		(847,803)	639,469
Consolidated net income/(loss) for the period		10,261,372	(5,121,616)
Attributed to:
Shareholders of parent company		10,572,874	(4,499,225)
Non-controlling interests		(311,502)	(622,391)
Earnings per share
Basic		0.03	(0.01)
Diluted		0.03	(0.01)

The notes are an integral part of the condensed consolidated financial statements.

The Certified Accountant

Condensed consolidated statement of comprehensive income

For periods of 3 months ended on 31 March 2021 and 2020

(Amounts expressed in Euro)	Notes	March 2021 (not audited)	March 2020 (not audited)
Consolidated net income / (loss) for the period		10,261,372	(5,121,616)
Components of other consolidated comprehensive income, net of tax, that will be reclassified subsequently to profit or loss:
Changes in reserves resulting from the application of equity method Changes in currency translation reserve and other	ട	1,075,753 (71,169)	(879,584) 311 899
Components of other consolidated comprehensive income, net of tax, that will not be reclassified subsequently to profit or loss:
Changes in reserves resulting from the application of equity method Fair value of investments	б	(419,547) 235,461	71.706
Consolidated comprehensive income for the period		11,081,870	(5,617,595)
Attributed to:
Shareholders of parent company		11,390,809	(4,995,204)
Non-controlling interests		(308,939)	(622,391)

The notes are an integral part of the condensed consolidated financial statements.

The Certified Accountant

Condensed consolidated statement of changes in equity

For periods of 3 months ended on 31 March 2021 and 2020 (restated)

							Reserves
					Reserves of own			Non-controlling	Net	Total
(Amounts expressed in Euro)	Share capital	Own shares	Share premium	Legal reserves	shares	Other reserves	Total reserves	interests	income / (loss)
2021
Balance at 31 December 2020	230.391.627	(7,686,952)	775.290.377	20,683,925	7.686.952	14.928.257	818,589,511	13.080.206	60.125.890	1.114.500.282
Appropriation of the consolidated net result of 2020
Transfers to other reserves						60,125,890	60.125.890		(60.125.890)
Consolidated comprehensive income for the period ended at 31 March 2021						817.936	817.936	(308,939)	10.572.874	11.081.871
Balance at 31 March 2021	230.391.627	(7,686,952)	775.290.377	20.683.925	7.686.952	75.872.083	879.533.337	12.771.267	10.572.874	1.125.582.153

							Reserve
(Amounts expressed in Euro)	Share capital	Own shares	Share premium	Legal reserves	Reserves of own shares	Other reserves	Total reserves	Non-controlling interests	Net income / (loss)	Total
2020
Balance at 31 December 2019 (restated) Appropriation of the consolidated net result of 2019	230391627	(7,686,952)	775.290.377	18.545192	7.686.952	(3,246,742)	798.275.779	(636,155)	52.168.120	1.072512.419
Transfers to other reserves						52.168.120	52.168120		(52.168.120)
Consolidated comprehensive income for the period ended at 31 March 2020						(495,979)	(495,979)	(622,391)	(4,499,225)	(5,617,595)
Other changes								216,517		216.517
Balance at 31 March 2020	230391627	(7,686,952)	775,290,377	18.545192	7,686,952	48.425.399	849,947,920	(1,042,029)	(4,499,225)	1.067 111.341

The notes are an integral part of the condensed consolidated financial statements.

The Certified Accountant

Condensed consolidated cash flow statement

For periods of 3 months ended on 31 March 2021 and 2020

(Amounts expressed in Euro)		March 2021 (not audited)		March 2020 (not audited)
Operating activities
Receipts from trade debtors	28,422,858		36,522,557
Payments to trade creditors	(17,346,654)		(22,912,390)
Payments to employees	(13,238,337)		(11,331,906)
Cash flows generated by operations	(2,162,133)		2,278,261
Payments / receipts relating to income taxes	(53,488)		(88,172)
Other receipts / payments relating to operating activities	489,560		(1,033,199)
Cash flows from operating activities (1)		(1,726,061)		1,156,890
Investing activities
Receipts from:
Interest and similar income	158,625		163,220
Payments for:
Financial investments	(2,780,794)		(3,721,300)
Tangible assets	(152,945)		(342,015)
Intangible assets	(203,927)		(47,428)
Cash flows from investing activities (2)		(2,979,041)		(3,947,523)
Financing activities
Receipts from:
Loans obtained	1,616,061		4.525
Payments for:
Leasing	(895,911)		(1,015,824)
Interest and similar expenses	(125,041)		(237,631)
Loans obtained	(290,269)		(794,070)
Cash flows from financing activities (3)		304,840		(2,043,000)
Net cash flows (4)=(1)+(2)+(3)		(4,400,262)		(4,833,633)
Effect of the foreign exchanges		4,209		(18,493)
Cash and cash equivalents at the beginning of the period		233,707,494		255,876,956
Cash and cash equivalents at the end of the period		229,311,441		251,024,830

The notes are an integral part of the condensed consolidated financial statements.

The Certified Accountant

5.2. Notes to the condensed consolidated financial statements of Sonaecom

1. Introductory note

SONAECOM, SGPS, S.A. (hereinafter referred to as 'the Company' or 'Sonaecom') was established on 6 June 1988, under the name Sonae – Tecnologias de Informação, S.A. and has its head office at Lugar de Espido, Via Norte, Maia – Portugal. It is the parent company of the Group of companies listed in note 4 and 5 ('the Group').

On June 1,2000, the company was admitted to trading on Euronext Lisbon, however, with effect from February 24, 2014, it was excluded from the PSI-20.

Sonaecom SGPS, S.A. is owned directly by Sontel BV and Sonae SGPS, SA and Efanor Investimentos SGPS, S.A. is the ultimate controlling company.

In addition to the holding activity, the group's businesses essentially consist of media and technology activities. The Group operates in Portugal and has subsidiaries from the information systems consultancy segment operating in about 4 countries.

The condensed consolidated financial statements are presented in the unit, except when were referred, being the group's main currency. Foreign currency translated into the functional currency of each entity at the exchange rate on the date of the transaction. The financial statements of subsidiaries with another corrency have been converted into euros using the average exchange rates at the reporting date.

Relevant events occurred during the period

At 7 January 2021, following the worsening situation with a higher transmission rate and an increased number of deaths, it was formally declared a new state of emergence and a new national lock-down which marked almost the full on March 11th, the Portuguese Government approved a gradual easing of lockdown plan based on risk evolution and, already in April, such emergence level was reduced.

The Board of Directors continued to follow in detail and with great concern all the pandemic developments, following closely the position of the competent international entities, namely the World Health Urganization and the European Centre for Disease Prevention and Control, as well as the Portuguese Directorate-General of Health.

Aligned with the Group's Risk Management Policies, contingency plans with correspondent mitigation actions were constantly updated and actioned across all companies and departments, allowing to keep our employees protected and to face this the less loss of value.

The financial and operational impacts continued to be different across segments:

The technology area continued to prove a strong resilience with no relevant impacts from pandemic situation;
· At NOS, the impacts were felt particularly in the Cinemas and Audiovisuals activity with the closing the full quarter, which inevitably impacted consolidated revenues and EBITDA evolution;
· Público's activity continued to face lower levels of advertising activity;

Overall, the macroeconomic context remains and intrinsically dependent on the epidemiological evolution and control, on governmental intervention to comply with vaccination plans, as well as on the support provided to the overall economy.

However, given the company's capital structure, with a significant amount in cash and bank deposits and a low amount of remunerated debt, no material changes in the Company's liquidity are expected. Furthermore, we will continue to implement all measures deemed appropriate to minimize their impacts, in line with the recommendation of the best interest of all our stakeholders.

2. Main accounting policies and basis of presentation

The condensed consolidated financial statements for the period ended at 31 March 2021, were prepared in accordance with IAS 34 -Interim Financial Reporting. Consequently, these financial statements do not include all the informational Financial Reporting Standards (IFRS'), so they should be read with the consolidated financial statements for the year end at 31 December 2020. The accounting policies and measurement criteria, adopted by the Group at 31 March 2021 are consistent with those used in the preparation of 31 December 2020 financial statements, except for the period, in accordance with IAS 34.

The condensed consolidated financial statements of Sonaecom Group were prepared on the assumption of operations, based on the books and accounting records of the consolidation, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted and effective in the European Union and based on historical cost, except for the revaluation of certain financial instruments.

3. Change in accounting policies and comparability of consolidated financial statements

During the period there were no changes in accounting policies, except for the adoption of new standards whose application became effective on 1 January 2021 which had no material impact on the Group's condensed financial statements.

The following standards, interpretations, and revisions have been approved (endorsed) by the European Union, and have mandatory application to the financial years beginning on or after 1 January 2020 and were first adopted in the period ended at 31 March 2021:

• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Reform of the reference interest rate (phase 2): These amendments deal with issues that arise during the reform of an interest rate reference which include the replacement of a reference interest rate with another alternative, allowing for the application of exemptions.

The Group concluded that the application of these standards did not have a materially effect on the financial statements.

The following standards, interpretations, and revisions have not, until the period ended at 31 March 2021, been approved ('endorsed') by the European Union:

Amendment to IFRS 3: Reference to the Conceptual framework: This amendment updates the references to the Conceptual Framework without changing the accounting requirements for business combinations.
Amendment to IAS 16: Proceeds before intended use: This amendment changes the accounting treatment of the proceeds obtained from the sale of products that resulted from the production test phase of property, plant and equipment, prohibiting their deduction to the acquisition cost of assets.
· Amendment to IAS 37: Onerous Contracts Cost of Fulfiling a Contract: This amendment specifies that when assessing whether a contract is onerous or not. Only expenses directly related to the contract can be considered.
IFRS 17: Insurance contracts: This new standard replaces IFRS 4 which becomes mandatory since 2004. IFRS 17 apply to all entities issuing insurance contracts reinsurance contracts with discretionary participation characteristics.
Annual Improvements 2018-2020 annual provides improvements to: IFRS 1 (Subsidiary as first-time IFRS adopter), IFRS 9 (Derecognition of liabilities), IFRS 16 (Leasing incentives) and IAS 41 (Taxation and measurement of fair value), This amendment is applied prospectively.
Amendment to IAS I: Classification of liabilities as current. This amendment intends to clarify that liabilities are classified as either current or non-current balances depending on the rights that an entity has to defer its payment, at the end of each reporting period.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: The changes require companies to disclose their material accounting policy information instead of their significant accounting policies. The amendments to the practical file of IFRS 2 provide guidance on how to apply the concept of materiality to accounting policy disclosures.
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Error: The changes clarify how companies should differentiate changes in accounting policies from changes in accounting estimates.
• Amendments to IFRS 16 Leases Rents related to Covid-19 after 30 June 2021: Extension of amendments to IFRS 16 Covid-19 related to rent concessions for rent payments due on or before 30 June 2022.

During the period ended at 31 March 2021, to ensure the comparability of the financial statements, the condensed consolidated financial statements for the period ended at 31 March 2020 were restated by the effects described below:

Restatement of consolidated financial statements

In the year ended at 31 December 2020, a review of the classification of minority investments in the subsidiaries SonaelM, Bright Development and Bright Vector I, recorded in the Group to date in accordance with IFRS 9 at fair value through other comprehensive income, was made. As a result of this review, the Group concluded that it had a significant influence on the majority of these investments. Accordingly, and, considering that the investment activity carried out by the referred subsidiaries fits, for the purposes of the exemption provided for in paragaph 18 of IAS 28, as a venture capital activity, the Group opted for the equity method, starting to measure, the minority investments held by them, at fair value through profit or loss in accordance with IFRS 9.

The financial statements for the period ended at 31 March 2020 were restated in order to incorporate the changes described above.

The impacts of restating the consolidated accounts in accordance with the changes described above for the period ended at 31 March 2020 can be summarised as follows:

(Amounts expressed in Euro)	March 20 (reported)	restated	March 20 (restated)
BALANCE SHEET
Non-current assets
Financial assets at fair value through other comprehensive income (note 7)	61,042,380	(55,697,569)	5.344.811
Financial assets at fair value through profit or loss (note 8)		55.697.569	55,697,569

4. Companies included in the consolidation

Group companies included in the consolidation method, their head offices, main activities, shareholders and percentage of share capital held at 31 March 2021 and 2020, are as follows:

						Percentage of share capital held
					2021		2020
Company (Commercial brand)	Head office	Main activity	Shareholder	Direct	Effective*	Direct	Effective*
Parent company SONAECOM, S.G.P.S., S.A. ('Sonaecom')	Maia	Management of shareholdings.
Subsidiaries Bright Developement Studio, S.A. ('Bright')	Lisbon	Research, development and commercialization of projects and service solutions in the area of information technology, communications and retail, and consulting activities for business and management.	Sonae IM	100%	100%	100%	100%
Bright Ventures Capital, SCR, S.A.	Lisbon	Realization of investment in venture capital, management of venture capital funds and investment in venture capital fund units.	Bright	100%	100%	100%	100%
Digitmarket - Sistemas de Informação, S.A. ('Digitmarket' - using the brand 'Bizdirect')	Maia	Development of management platforms and commercialisation of products, services and information, with the internet as its main support.	Sonae IM	75%	75%	75%	75%
Excellium Group, S.A. ('Excellium')	Contern	Excellium assist enterprises to perform business and risk assessments, define security policies and procedures, respond to security incidents and deliver computer forensics services.	Maxive	59.20%	59.20%	59.20%	59.20%
Excellium Services, S.A. ('Excellium Services')	Contern	Provide services within the IT and cibersecurity domain mainly to	Excellium	100%	59.20%	100%	59.20%
Excellium Services Belgium, S.A. ('Excellium Services Belgium')	Wavre	Luxembourgish institutions, banks and insurance companies. Provide services within the IT and cibersecurity domain mainly to	Excellium	100%	59.20%	100%	59.20%
Excellium Factory SARL ('Excellium Factory')	Raouad-Ariana	Belgium institutions, banks and insurance companies. Vehicle for the Excellium product development in Africa.	Excellium	80%	47.36%	80%	47.36%
Inovretail, S.A.	Oporto	Industry and trade of electronic equipment and software; development, installation, implementation, training and maintenance of systems and software products; rental equipment, sale of software use license; consulting business, advisory in retail segments, industry and services.	Sonae IM	100%	100%	100%	100%
Inovretail España, SL ('Inovretail España')	Madrid	Industry and trade of electronic equipment and software; development, installation, implementation, training and maintenance of systems and software products; rental equipment, sale of software use license; consulting business, advisory in retail segments, industry and services.	Inovretail	100%	100%	100%	100%
Fundo Bright Vector I ('Bright Vector I')	Lisbon	Venture Capital Fund	Sonae IM	50.13%	50.13%	2013%	5013%
Fundo Bright Tech Innovation I - ('Bright Tech Innovation I') (a)	Maia	Venture Capital Fund	Sonaecom Sonae IM Bright PCJ SPAR	10% 10% 10% 10% 10%	50%
Maxive- Cybersecutiry, SGPS.S.A ('Maxive') (b)	Maia	Management of shareholdings.	Sonae IM	100%	100%	100%	100%
Mxtel, S.A. de CV (Mxtel)	Mexico Lity	Rendering of engineering and II consulting services specializing in information security and management of telecommunications services.	S21 Sec Gestion	99.93%	80.90%	ਰੇਰੇ ਰੇਤੇ ਰੇਤੇ ਕੇਤੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਕੇ ਇੱਕ ਕਿ ਇੱਕ ਸੀ। ਇਹ ਕਿ ਇੱਕ ਸਿੰਘ ਅਤੇ ਇੱਕ ਸਿੰਘ ਦੇ ਸੰਗ੍ਰਹਿ ਦੇ ਸੰਗ੍ਰਹਿ ਦੇ ਸੰਗ੍ਰਹਿ ਦੇ ਸੰਗ੍ਰਹਿ ਹੈ ਕਿ ਇੱਕ ਸਿ	80.90%
PCJ - Público, Comunicação e Jornalismo, S.A. ('PCJ')	Maia	Editing, composition and publication of periodical and non-periodical material and the exploration of radio and TV stations and studios.	Sonaecom	100%	100%	100%	100%
Praesidium Services Limited (Praesidium Services')	Berkshire	Rendering of consultancy services in the area of information systems.	Sonae IM	100%	100%	100%	100%
Público - Comunicação Social, S.A. (Público')	Oporto	Editing, composition and publication of periodical and non-periodical material.	Sonaecom	100%	100%	100%	100%
S21Sec Portugal Cybersecurity Services, S.A.(S21 Sec Portugal') Maia		Lommercialization of products and management services, implementation and consulting in information systems and technologies areas.	S21 Sec Gestion	100%	80.90%	100%	80.90%
S21 Sec Gestion, S.A. ('S21 Sec Gestion')	Guipuzcoa	Consulting, advisory, audit and maintenance of all types of facilities and advanced communications services and security systems. Purchase and installation of advanced communications and security systems produced by others.	Maxive	80.90%	80.90%	80.90%	80.90%
521 Sec Information Security Labs, S.L. ('521 Sec Labs')	Navarra	Research, development and innovation, as well as consulting, maintenance and audit for products, systems, facilities and communication and security services.	S21 Sec Gestion	100%	80.90%	100%	80.90%
S21 Sec, S.A. de CV ('S21 Sec, S.A. de CV')	Mexico City	Computer consulting services	S21 Sec Gestion S21 Sec Labs	99.9996% 0.0004%	80.90%	ਰੇਰੇ ਰੇਰੇ ਰੇਰੇ ਰੇਡ ਰੇਡ ਕੇ ਕਿ ਅੰਦਰ ਕੇ ਕਿ ਅੰਦਰ ਸਿੰਘ ਹੈ ਕਿ ਇੱਕ ਸਿੰਘ ਦੇ ਸਿੰਘ ਦੇ ਸਾਂ ਦੀ ਸਾਂ ਦੀ ਸਾਂ ਦੀ ਸਾਂ ਉਹ ਕੇ ਉਸ ਦੀ ਸਾਂ ਦੀ ਸਾਂ ਉਹ ਕੇ ਉੱਤੇ ਹੋ ਕਿ ਇੱਕ ਸਿੰਘ ਦੇ ਸਿੰਘ ਦੇ ਸਾਂ ਉੱਤੇ ਹੋ 0.0004%	80.90%
Sonaecom - Serviços Partilhados, S.A. ('Sonaecom SP')	Maia	Support, management consulting and administration, particularly in the areas of accounting, taxation, administrative procedures, logistics, human Sonaecom resources and training.		100%	100%	100%	100%
Sonae Investment Management - Software and Technology, SGPS, S.A. ('SonaelM')	Maia	Management of shareholdings in the area of corporate ventures and joint ventures.	Sonaecom	100%	100%	100%	100%
* Sonaecom effective narticination

(a) Venture Capital Fund constituted in June 2020.
(b) In February 2021, Sonaecom- Cyber Security and Intelligence, SGPS, S.A changed its name to Maxive- Cybersecutiry, SGPSS

All the above companies were included in the consolidation in accordation method under the terms of FRS 10 – 'Consolidated Financial Statements'.

5. Changes in the group

During the periods ended at 31 March 2020, the following changes occurred in the composition of the Group:

a) Acquisitions

Shareholder	Subsidiary	Date
2021
Bright Vector I	Automaise, Lda ('Automaise') (note 8) - increase	Jan-21
Sonae IM	Sellforte Solutions Oy ('Sellforte') (note 8)	Feb-21

Shareholder	Subsidiary	Date
2020
Sonae IM	Sales Lauer Tech, S.L. (note 8)	Mar-20

6. Investments in joint ventures and associated companies

The associated companies and the companies jointly controlled, their head offices, percentage of ownership and value in profit and loss statement at 31 March 2021 and 2020 are as follows:

		Percentage of ownership			Value in profit and loss statement
		31 March 2021		31 March 2020		31 March 2021	31 March 2020
	Head Office	Direct	Tota	Direct	Tota
ZOPT, SGPS, S.A. ('ZOPT') (a)	Oporto	50.00%	50.00%	50.00%	50.00%	6,931,092	(1,000,368)
Unipress - Centro Gráfico, Lda. ("Unipress")	Vila Nova de Gaia	50.00%	50.00%	50.00%	50.00%	(23,580)	8,871
SIRS - Sociedade Independente de Radiodifusão Sonora, S.A. ('Rádio Nova')	Oporto	50.00%	50.00%	50.00%	50.00%	(14,793)	(17,001)
Intelligent Big Data, S.L. ('Big Data') (b)	Gipuzcoa			50.00%	50.00%		-
Fundo de Capital de Risco Armilar Venture Partners II (Armilar II) (c)	Lisboa	44.33%	44.33%	50.74%	50.74%	311,925	42,774
Fundo de Capital de Risco Armilar Venture Partners III (Armilar III)	Lisboa	42.80%	42.80%	42.80%	42.80%	1,429,827	231,626
Fundo de Capital de Risco Armilar Venture Partners Inovação e Internacionalização (Armilar 1+1)	Lisboa	38.25%	38.25%	38.25%	38.25%	825,411	(11,651)
Secucloud Network GmbH (Secucloud)	Hamburg	27.45%	27.45%	27.45%	27.45%		(85,0001)
Probe.ly	Lisbon	21.21%	21.21%	2121%	2121%	3,174	(631)
Suricate Solutions	Luxembourg	20.00%	11.84%	20.00%	11.84%		12,727
Alfaros SAR	Tunisia	40.00%	23.68%	40.00%	23.68%		(1,573)
Total						9,463,056	(820,227)

(a) Includes the incorporation of the results of the subsidiaries in proportion to the capital held.

(b) Company liquidated in november 2020.

In the case of investments in associates that are venture capital organizations, IAS 28 contains an option to keep these investments held by them measured at fair value. The Group made this option, applying the equity method to Armilar Funds.

In accordance with the IFRS 11, the classification of investments in the is determined based on the existence of an agreement that clearly demonstrate and regulate the joint control. The Group held associated and jointly companies, as decomposed below.

The division by company of the amount included in the investments in associated companies and join controlled at 31 March 2021 and 31 December 2020 is as follows:

	31 March 2021				31 December 2020
	Ownership value	Goodwill	Total investment	Ownership value	Goodwill	Total investment
Investments in companies jointly controlled
Zopt	583,042,983	87,527,500	670,570,483	575.455,685	87,527,500	662,983,185
Unipress	381,555	321,700	703,255	405,135	321,700	726,835
SIRS	4.937		4.937	19,730		19,730
	553,392,312	87,849,200	671,278,675	575,880,550	87,849,200	663,729,750
Investments in associated companies
Armilar II	77,574,650		77,574,650	96,578,405		96,578,405
Armilar III	26,471,656		26,471,656	31,302,286		31,302,286
Armilar I+I	13.646.076		13,646,076	16.025,832		16.025,832
Secucloud	(2,499,722)	2,499,722		(2,499,722)	2,499,722
Probelly	(160,097)	297,168	137,071	(163,271)	297 168	133.897
Suricate Solutions	20,953		20,953	20,953		20.953
Alfaros SARL	4,537		4,537	4,537		4537
	141,741,429	4,716,910	117,854,943	141,269,020	2,796,890	144.065.910
Total	695,133,741	92,566,110	789,133,618	717,149,570	90,646,090	807.795,660

In the period ended at 31 March 2021, due to changes to the Armilar Funds Regulation, the amount related to the contractual incentive (Incentive Scheme) to be paid to the Fund Management Company, recorded in "Provisions" in the amount of EUR 28,781, was reclassified to "Investments in joint ventures and associated companies".

The value on the income statement related to Zopt results from net income of Zopt and the impact on results of the process of allocating the fair value to the assets and liabilities acquired by Zopt.

At 31 March 2021, it was considered that the assumptions made in the impairment tests carried out in 2020 did not have significant variations.

With regard to ZOPT's financial participations in Finstar consolidated), the Board of Directors of NOS and ZOPT is certain that the patrimony seizure to Mrs. Isabel dos Santos, in the shares held by her in Finstar and ZAP Media (where she holds 70% of the capital), does not change the control as defined in IFRS 11, it is not expected to have relevant consequences for the operational management of companies, in addition to restrictions of dividends in these companies.

At 4 April 2020, SONAECON, was informed by its subsidiary ZOPT of the communication received from the Lisbon Central Criminal Instruction Court ('Court') to proceed to the preventive arrest of 26.075% of NDS' share capital, corresponding to half the shareholding in NOS held by ZOPT and, indirectly, by the companies Unitel International Holding Limited , controlled by Mrs. lsabel dos Santos. Under the terms of the communication, the arrested shares (134,322,268.5 hares) are deprived of the right to vote and the right to receive dividends, which must be deposited with Laixa Geral de Depósitos, S.A. (CGD) at the order of the court. The other half of ZOPT's participation in NOS' share capital, corresponding to an identical percentage of 26.075% - and which, at least in line with the criterion used by the Court, embodies the 50% held in ZDPT by SONAECOM - was not subject to arrest, nor the rights attached to it were subject to any limitation.

Although ZDPT has not been notified of the grounds for preventive arrest, based on the preliminary information they have, it is the understanding of the board of directors of ZDPT and SONAECOM that the measure of arrest imposed is illegitimate and offends several fundamental rights of ZOPT, no being legally liable to determine the deprivation of voting rights, not even to inhibit the holder of the arrested shares from continuing to exercise those rights, which deprivation we understand for this reason, be null and without any effect. Thereafter, ZOPT has deducted third-party embargoes.

At 12 June 2020, ZOPT was notified of the order issued by the Lisbon Central Criminal Investigation Court, which authorizes it to exercise the voting right corresponding to the 26.075% of NOS share capital preventively seized under the aforementioned Court order. For this reason, the Boards of Directors of ZOPT and SONAECOM consider that the conditions of control of ZOPT over NOS are met, and the measure does not have material effects on the control of this company.

Still in June 2020, the Investigating Judge rejected the third-party embargoes deducted by ZOPT based on the Portuguese courts' inability to assess and decide upon them. This decision, having been appealed by the Court of Appeal already in 2021. Developments are awaited, namely the judicial pronouncement on the seizures.

At 19 August 2020, Sonaecom communicated the intention of the shareholders of ZDPT (Sonaecom, Unitel International Holdings, BV and Kento Holding Limited) to liquidate the company, mairtaining Sonaecom as the reference shareholder of NOS. To date, the efforts to dissolve the ZOPT have not yet been carried out.

In the last quarter of 2020, the seizure of 233,790,325 shares corresponding to 32.65% of capital of ZOPT held by UNITEL was also decreed, with deprivation of the exercise of voting right to receive dividends, and 124,234,675 shares corresponding to 17.35% of capital of ZOPT held by KENTO, also with no exercise of the right to receive dividends. Additionally, in lanuary 2021, ZOPT was also notified by Caixa Geral de Depósitos (CGD), as the beneficiary of the shares held by Kento in ZOPT, referring to being vested with the power to exercise the voting rights inherent in the ent rights, and that Kento was deprived of exercising such rights without the prior, express and written authorization of CGD It is the understanding of the Board of Directors of ZOPT, that whenever there is no question the economic value of the shares, in the exercise of voting rights, CGD as Kento's pledge creditor, must act in accordance with Kento's instructions, which means voting in the sense defined by Kento.

Despite the facts described above considering that, no steps have yet been taken to iquidation of ZOPT, that there has been no change in the board of directors of ZDPT and that decisions on the operating activity of the investee company continue to be taken in accordance with what was being done, we concluded that the profile of joint control over the ZOPT has not changed.

ZOPT Group provisions

The evolution in provisions occurred during the first 3 months of 2021 compared to 31 December 2020 was as follows:

Actions by MEO against NOS S.A., NOS Madeira and NOS Açores and by NOS S.A. against MEO

The court ruled on 16 March 2021 and disregarded the remaining pre-scheduled dates for the final hearing. On the present date, we await the scheduling of new dates for the understanding of the Board of Directors, corroborated by the attorneys accompanying the process, that it is, in formal and substantive terms, likely that NOS SA will be able to MED already having been convicted for the same offences by ANACOM.

Interconnection tariffs

At 31 March 2021, accounts receivable and accounts payable include EUR 37,139,253 and EUR 43,475,093, respectively, resulting from a dispute between the subsidiary NOS SA and, esserviços de Comunicação e Multimédia, S.A. (previously named TMN – Telecomunicações Móveis Nacionais, S.A.), in relation of interconnection tariffs of 2001. In what concerns to that dispute with MEO, the result was totally favourable to NOS S.A., having already become final. In March 2021, MEO filed a new lawsuit against NDS, in which it claimed the price of interconnection services between TMN and Optimus for 2001 at 55500 (EUR 0.2743) per minute. The deadline for submitting the challenge by NOS is pending.

רק Contractual Penalties

At 31 March 2021, the amounts billed and to be received from these indemnities amount to EUR 111 million.

COVID-19

With the emergence, spread and infection of the new coronavirus CDVD-19, several measures were taken to contain the virus with very significant estimated impacts on the Portuguese economics, namely, limitations on travel rights and closure of several facilities and establishments.

In the uncertainty of this threat, it is essential that companies design and implement, in a timely manner, structured and efficient contingency plans that guarantee employee protection and business continuity or that, at least, mitigate the resulting effects. This is a situation of uncertainty and very dunamic, which makes it extremely difficult to estimate impacts, which always have to consider several scenarios and countless variables. Evidence of this difficulty is the historical drops and sharp volatility of exchanges, all over the World; the great variations that occurred in the future projections of macroeconomic indicators, as well as the disparity of these projections between the several entities.

The impacts on ZOPT through participation in NOS were felt in the results of the financial year ended at 31 December 2020, with a drop in revenues, consolidated EBTDA and operational cash-flows of - 6.2% (EUR - 30.8 million) and - 3.8% (EUR -65.2 million), respectively, which shows a reduction in activity in:

i. movie premieres, slightly offset by cinema rentals negotiations;
ii.
Roaming and international calls: traffic and restrictions imposed on international travel,
Equipment sales: with the closure of shoping centers and travel restrictions, there iii. phones and equipment, which is partially offset by the increase in online sales (in the long run there may be a positive effect on the evolution customer take-up of digital channels);
Mobile data revenues: quarantine and isolations imply an increase in the use of wireless networks, reducing the iv. use of mobile data; and,
v. advertising content.

ln the quarter ended 31 March 2021, the impacts on NOS were felt particularly in the Cinemas and Audiovisuals activity with the closure of movie theaters since mid-January 2021 and in the Telco segment with impacts in terms of roaming revenues.

NOS is committed to support their customers during the current COVID-19 public health crisis. At a time when many Portugueses are changing their habits and routing remotely, keeping customers connected is the main objective of NOS. To this end, NOS faciltate access to services, through data offers, suspension of monthly payment of premium sports channels, reinforcement of the ability to implement business services and guaranteeing a safe and secure service in our stores, in order to safeguard customers, employees and partners. The NOS Telecommunications Network supports a set of our society, which include our National Health System. In this context of global health emergency, the maintenance of Portuguese communications is a fundamental task.

On the other hand, the projections made for the Portuguese economy, led to a reassessment of projections and estimates, which resulted in the reinforcement, in the first quarter of impairments, of accounts receivable (28.2 million euros) and other costs recognised, related to onerous contracts (10.8 million euros), as well as the recording of impairments in the item "Losses", in the amount of 8.5 million euros. In line with the current recommendations, the Group proceeded to sensitivity analysis to the assumptions used in the impairment tests to Goodwill conducted in the end of impairment being concluded. The most affected segment by COVID-19 was the cinemas one, with a recovery estimation to pre-pandemic values in 2023.

Liquidity and interest rate risk

Prudent liquidity risk management implies maintaining an adequate level of cash and cash equivalents to meet assumed liabilities, associated with the negotiation of credit lines with financial institutions.

At 31 March 2021, the average maturity of the NOS group's financing is 2.4 years, with no non-compliance with the covenants due to the reduction in results projected for this year, being expected.

Credit risk

Credit risk is essentially related to credit for services provided to customers, monitored on a regular business basis and for which expected credit losses are determined considering i) the customer's risk profile; ii) the client's financial condition; and iv) future perspective of the evolution of the collections.

In terms of the projection of future impacts at NOS, these will depend on the extent, namely timing, of the spread of the virus and the respective containment measures, making it difficult to predict the scale of the knowledge, however, that it will occur in the areas mentioned above. NOS 'capital structure is within the 2x Net Financial Debt / EBITDA After Leasings Payments (EBITDA -Leasings Payments (Capital and Interest)) threshold so the Board of Directors of NOS believes that the company will overcome the negative impacts caused by this crisis, without jeopardizing business continuity, this conviction is demaintenance of the shareholders' remuneration policy.

7. Financial assets at fair value through other comprehensive income

At 31 March 2021 and 31 December 2020, this caption was composed as follows:

	31 March 2021	31 December 2020
Deepfence	2,132,200	2,037,325
Nextail	1,628,760	1,628,760
lriusrisk	1,416,514	1,416,514
Style Sage	1,501,219	1,378,547
Sensei	405,900	405,900
Others	472,006	432,745
	7,556,599	7,299,791

At 31 March 2021, these investments correspond to shareholdings in which the Group has no significant influence.

According to IFRS 9 these investments are defined as 'hvestments at fair value through other comprehensive income' as they are held as long-term strategic investments and there is no expectation that these investments will be sold in the short and, so, were irrevocably designated as investments at fair value through other comprehensive income. For investments with a maturity of less than a year the acquisition costs were considered as a reasonable approximation of their fair value. For investments with a maturity greater than a year the subsequent changes in fair value are presented through other comprehensive income. The fair value of the investments is calculated in the currency of the investment and converted to euros at the end of the reporting year.

In the periods ended at 31 March 2021 the change in investments at fair value through other comprehensive income was as follows:

	31 March 2021	31 March 2020 (restated)
Opening balance	7,299,791	5,344,811
Fair value	256,808	-
Closing balance	7,556,599	5,344,811

StyleSage

Stylesage is a strategic analytics SaaS platform that helps fashiers and brands with critical pre, in and post season decisions gobally, Every day, StyleSage pulls product data from competitors' ecommerce websites from around the world. Then, with groundbreaking technology in machine learning and visual recognition, StyleSage cleans, organizes, and analyzes the massive amounts of collected data into a cloud-based that empowers brands and retailers to make informed, data-driven decisions in areas such line planning, markdown optimization, and global expansion.

Nextail

Nextail is a Spanish company that has developed a cloud-based platform that combines artificial intelligence and gics to upgrade retailers' inventory management processes and store operations. The company raised a S10.0 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.

IriusRisk

lriusRisk (previously named Continuum Security) is a Spanish based company with an application to address vulnerabilities early in the development process. In order their international growth plans, the company has raised an investment round of EUR 1.5 million, which was led by Swanlaab Venture Factory and joined by JME Venture Capital and Sonae M. In September 2020, the company raised a series A round of 6.7 million dollars participated by Paladin, 360 CP, Swanlab JME Venture Capital and Sonae IM.

Deepfence

Deepfence is a leading US-based cloud-native workload protection platform that aims to provide a unified security platform for kubernetes, virtual machines and serverless worklads. Deeptence ensures business continuity in the face of persistent threats by detecting and disrupting sophisticated attacks targeting cloud-native technologies, the "glue" that keeps the current world connected. Deepfence raised \$9.5 million in Series A financing led by AlegisCyber, with participation from Sonae M, and existing investor Chiratae Ventures.

8. Financial assets at fair value through profit or loss

At 31 March 2021 and 31 December 2020, this caption was composed as follows:

	31 March 2021	31 December 2020
Arctic Wolf	48,277,273	46,129,113
Cellwise	8,347,577	7,976,141
Ometria	8,087,208	7,664,993
Sixgill	5,117,280	4,889,580
Case on IT	4,402,087	4,402,087
Weaveworks	4,264,399	4,074,649
CB4	3.457.683	3,278,059
Sales Layer	2,500,358	2,500,358
Sellforte	2,500,000	-
Visenze	2,489,389	2,378,620
Reblaze	2,345,421	2,241,058
CiValue	1,910,451	1,825,443
Jscrambler	1,550,000	1,550,000
Daisy Intelligence	1,121,924	1,050,496
Others	2,693,447	2,363,466
	99.064.497	92.324.063

Investments not irrevocably designated in the initial recognition as Investments at fair value for other are classified as 'Investments at fair value through profit or loss' in accordance with IFRS 9. Are also included in this caption the investments in associated companies, held by a venture capital or equivalent, in which the Group opted, in the initial recognition for, to measure at fair value through results in accordance with IFRS 9. In the case of the investments of less than 1 year, their acquisition cost was considered a reasonable approximation of their ralue. For investments over 1 year, subsequent changes in fair value are presented through profit or loss. The investments is calculated in the currency of the country of the investment and converted to euros at the end of the reporting year.

In the periods ended at 31 March 2021, the change in investments at fair value through other comprehensive income was as follows:

(restated)
53.022.211
2,675,358

55.697.569

ArcticWolf

ArcticWolf, a US based company, 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. Sonae M, jointy with US technology investors Lightspeed Venture Partners and Redpoint, entered in the company's cap table in 2017 in a series Bround. During 2018, the Company closed a \$45M series C round and, at the end of 2019, the Company launched a \$60M Series D round. In October 2020, the company announced it has raised \$200 million in Series E funding at a valuation of \$1.3 billion. The funding round was led by Viking Global Investors, with additional participation from DTCP and existing investors. Sonae IM participated in all rounds, reinforcing its stake.

Ometria

Ometria is a London based Al powered customer marketing platform with the vision to become the central 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 B round.

CB4

CB4 is a company based in Israel that provides a patented Al software solution for brick and mortar retailers to identify and correct critical operational issues at store, product level. The investment was part of a series B \$16M round, led by Octopus Ventures with Sonae IM joining. Existing investors Sequoia Capital and Pereg Ventures also participated in the round.

Reblaze

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

Visenze is a Singapore-based company that delivers inage recognition solutions that shorten the path to action as consumers search and discover on the visual web. Retailers use ViSenze to immediate product search opportunities, improving conversion rates. Media companies use ViSenze to turn any image or 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 communication applications.

Daisy Intelligence

Daisy Intelligence is an Al-powered platform for retail merchandising promotional product and price mixes for dramatically improved business results. Sonae IM partners invested in a C\$ 10M (circa EUR 7M) series A round.

Sixgill

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 finances, networks and reputations from 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 and actionable insights to protect their various assets in the ever-evolving cyber threatscape. Sixgill raised \$15M in a second round led by Sonae IM and REV Venture Partners with participation by Our Crowd. Previous investors Elron and Terra Venture Partners also participate in the round.

Case on IT

Case on IT is a Spanish company that has developed Medux, a machine learning solution for the measurement, prediction and analysis of landline, mobile and television services quality. Medux measures the customer in markets that collectively serve over 600 million users worldwide. The company raised a Series B round of international fund with Sonae IM.

ciValue

ciValueis an Israeli company with offices in New York, Paris, and Tel Aviv, is a disruptive provider of cloud-based Precision Marketing and Supplier Advertising Platforms for Retailers. Sonae IM, coupled with Nielsen, led a \$6M Series A investment.

Cellwize

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 Minvested in a round of \$15M led by Deutsche Telekom Capital Partners. In November 2020, the company announced a \$32 million Series B funding round led by Intel Capital and Qualcomm Ventures LLC with participation from Verizon Ventures, Samsung Next, and existing shareholders.

Jscrambler

Iscrambler is a Portuguese startup that develops a security solution to protect Web and Mobile Appications (Javascript code). The company raised a \$2.3 million in a series A financing round that was led by Sonae IM with the co-investment of Portugal Ventures.

Sales Layer

Sales Layer is a Spanish based company with a cloud-based Product Information Management (PM) platform, nelping brands and retailers to transform their catalogs into a digital, enriched, and multichannel control center. Sonae IM recently led its series A round.

Weaveworks

Weaveworks is a US company that helps teams to adopt cloud native computing, managing cloud native infrastructure and applications quickly, reliably and at scale. Weaveworks announced a \$36.65 million Series C funding round led by some of the world's leading public cloud and telecommunications companies, including first-time investors Amazon Web Services (AWS), Ericsson, Orange Ventures, Sonae IM and Telekom Investment Pool (TIP). The round also included follow-on investments from Accel, GV, and Redline Capital.

Sellforte

Selforte, based in Helsinki, Finland, is a SaaS platform for Retailers, Brands and Telcos, which uses proprietary data science and Al to measure the effectiveness of online and offline marketing investments.

9. Sales and services rendered

At 31 March 2021 and 2020, this caption was composed as follows:

	2021	2020
Technologies	23,424,253	25,631,403
Media and others	3,112,513	3,725,154
	26,536,766	29,356,557

The detail of unrecognised revenue related to performance obligations of contracts with customers not satisfied in the period ended at 31 March 2021, by type of contract and according to its duration, is as follows:

	Contract with customer duration
	2021	2022	2023	>2023	Total
Technologies:
Cubersecurity	6,227,800	6,031,402	3.451,726	503,908	16,214,837
Total revenue from contracts with customers	6,227,800 6,031,402 3,451,726 503,908

10. Related parties

During the periods ended at 31 March 2020, the balances and transactions maintained with related parties were mainly associated with the normal operational activity of the Group and to the concession and obtainment of loans.

The balances and transactions with related parties during the periods ended at 31 March 2021 and 2020 were as follows:

					Balances at 31 March 2021
	Accounts receivable	Accounts payable	Treasury applications	Other assets	Other liabilities
Parent Company (Sonae SGPS)	2,263,558	2,402,550		418.670	5.405
Companies jointly controlled	394.044	322.091		1.649.544	1,138,783
Associated companies	35.516	38.060		3,228,736	5.300
Others related parties	4.236.039	90.104		42.232	979.300
	6.929.158	2,852,805		5,339,182	2,128,788

					Balances at 31 March 2020 (restated)
	Accounts receivable	Accounts payable	Treasury applications	Other assets	Other liabilities
Parent Company (Sonae SGPS)	4.010.845	5.013.576		147.481	5.476
Companies jointly controlled	684.818	497,150	4.700	15,300	67.597
Associated companies	57,175	954		3,777,015
Others related parties	2,568,503	340,726		259,203	30.423
	7,321,340	5.852.406	4,700	4.198.999	103.496

					Transactions at 31 March 2021
	Sales and services	Supplies and services	Interest and similar	Interest and similar	Supplementary
	rendered	received	income	expense	income
Parent Company (Sonae SGPS)	4.405	118.226	132.627
Companies jointly controlled	1,566,761	200,052			52,550
Associated companies		46.272	27,819
Others related parties	3.724.401	221.058		23.521
	5 295 567	585 608	160 446	23 521	52 550

					Transactions at 31 March 2020 (restated)
	Sales and services	Supplies and services	Interest and similar	Interest and similar	Supplementary
	rendered	received	income	expense	income
Parent Company (Sonae SGPS)	12.635	114,807	158.255
Companies jointly controlled	919,536	216.394	41		50,168
Associated companies		332	24,065		46.369
Others related parties	2349126	297.041			3,500
	3,281,298	628.573	182,360		100,037

The transactions between Group companies were eliminated in consolidation, and therefore are not disclosed in this note.

All the above transactions were made at market prices.

Both accounts receivable and payable with related parties will be paid in cash and have no guaranties attached.

During the periods ended at 31 March 2020, no impairment losses have been recognised as accounts receivables of related parties.

11. Segment information

In the periods ended at 31 March 2021 and 2020, the following business segments were identified:

Media;
Technologies; and
Holding activities.

These segments were identified taking into considerations: the fact of being group units that develop activities where we can separately identify revenues and expenses, for which financial is separately developed and their operating results are regularly reviewed by management and over which decisions are made. For example, decisions about allocation of resources, for having similar products/services and also taking into consideration the shold (in accordance with IFRS 8).

The segment 'Holding activities' includes all the parent company that have as their main activity the management of shareholdings.

Excluding the ones mentioned above, the remaining activities of the Group have been classified as unallocated.

Inter-segment transactions during the years ended at 31 March 2021 and 2020 were eliminated in the consolidation process. All these transactions were made at market prices.

lnter-segment transfers or transactions were entered under the normal commercial terms and conditions that would also be available to unrelated third parties and were mainly related to interest on treasury applications and management fees.

Dverall information by business segment at 31 March 2020, prepared in accordance with the same accounting policies and measurement criteria adopted in the preparation of the consolidated financial statements, can be summarised as follows:

	Media		Technologies		Holding Activities		Subtotal		Eliminations and others		Total
	March 2021	March 2020	March 2021	March 2020	March 2021	March 2020	March 2021	March 2020	March 2021	March 2020	March 202	March 2020
Revenues:
Sales and services rendered	3,100,959	3,452,887	23,519,773	25,700,308	97,500	85,625	26,718,232	29,238,820	(181,466)	117,737	26,536,766	29,356,557
Other operating revenues	160,310	106.806	364,945	258,000	511	19.410	525,766	384 216	ਰੇਰੇਤ	25,736	526,759	409,952
Total revenues	3,261,269	3,559,693	23,884,718	25,958,308	98,011	105.035	27,243,998	29,623,036	(180,473)	143.473	27,063,525	29.766.509
Depreciation and amortisation	(175,953)	(278,902)	(1,711,496)	(1,810,333)	(8,332)	(7,852)	(1,895,781)	(2,097,087)	(88,227)	(106,660)	(1,984,008)	(2,203,747)
Provisions and impairment losses			(51,058)	(40,604)	(10,705)	(64,139)	(61,763)	(104,744)			(61,763)	(104,743)
Net operating income / (loss) for the segment	(696,220)	(964,968)	(1,610,269)	(3,399,483)	(417,877)	(345,724)	(2,724,366)	(4,710,175)	84,263	271,620	(2,640,103)	(4,438,555)
Interest income	4,699	4,700	47,293	41,655	280,456	238,321	332,448	284,6/4	(142,495)	(72,619)	189,953	212,055
Interest expenses or oss	(8,740)	(4,294)	(226,656)	(209,994)	(388)	(516)	(235,784)	(214,804)	146,976	9,767	(88,808)	(205,037)
			4,120,434				4,120,434				4,120,434
Gains and losses in associated companies and joint ventures	(38,373)	(8,130)	2,570,337	188,271	6,931,092	(1,000,368)	9,463,056	(820,227)			9,463,056	(820,227)
Other financial results	(4,873)	(3,273)	89,821	(389,510)	(718,409)	(419,279)	(633,461)	(812,062)	698,104	302,741	64,643	(509,321)
Income taxation	170,145	232,899	(1,029,384)	384 519	30,829	42,948	(828,410)	660,366	(19,393)	(20,897)	(847,803)	639,469
Consolidated net income/(loss) for the period	(573,362)	(145,066)	3,961,576	(3,298,912)	6,105,703	(1,5/0,250)	9,493,917	(5,612,228)	767,455	490,613	10,261,372	(5,121,616)
Attributable to:
	(573,362)	(/45,066)	4,329,835	(2,690,055)	6,105,703	(1,570,250)	9,862,176	(5,003,371)	710,698	504,146	10,572,874	(4,499,225)
Shareholders of parent company
Non-controlling interests			(368,259)	(608,857)			(368,259)	(608,857)	56,757	(13,534)	(311.502	(622,391)
		March 2021 December 2020		March 2021 December 2020		March 2021 December 2020		March 2021 December 2020		March 2021 December 2020	March 2021	December 2020
Assets:
Tangible, intangible assets, Right of use and goodwill	2,953,164	2,948,598	28,924,307	29,755,984	92,638	70,200	31,970,109	32,774,782	2,543,278	2,631,165	34,513,387	35,405,947
Inventories	232,607	194.413	15.200	57,414			247.807	251,827			247,807	251.827
Investments in joint ventures and associated companies	655,245	eas,ela	117,854,946	144,065,913	670,570,483	662,983,184	789,080,674	807,742,716	52,944	52,944	789,133,618	807,795,660
Financial assets at fair value through other comprehensive incon	3,047,948	3,047,949	7,508,651	7,251,842			10,556,599	10,299,791	(3,000,000)	(3,000,000)	7,556,599	7,299,791
Financial assets at fair value through profit or loss			99,064,497	92,324,063			99,064,497	92,324,063			99,064,497	92,324,063
Other non-current assets and deferred tax assets	3,022,305	2,924,374	13,971,002	13,714,766	173,750,706	176,955,566	190,744,013	193,594,706	(166,372,921)	(169,611,538)	24,371,092	23,983,168
Other current assets of the segment	11,200,848	11,957,020	69,271,966	73,224,153	190,068,263	187,926,829	270,541,077	275,108,002	1,416,471	7,322,335	271,957,548	280,430,337
Liabilities:
Liabilities of the segment	10,406,717	10,487,209	112,600,972	137,985,308	2,211,461	2,427,059	125,219,150	150,899,576	(23,956,755)	(17,909,065)	101,262,395	132,990,511
CAPEX	183,602	6,093,911	3,771,307	24,885,132	2,791,948	46,518,317	6,746,857	77.497.360	(2,760,003)	(49,428,786)	3,986,854	28,068,574

During the period ended at 31 March 2021 and 2020, the inter-segments sales and services were as follows:

	Multimedia	Information Systems	Holding Activities
2021
Multimedia	-	39,481	46.244
Information Systems	-		18,750
Holding Activities		60	-
External trade debtors	3,100,959	23,480,232	32,506
	3,100,959	23,519,773	97,500

2020
Multimedia	-	19,621	-
Information Systems	-		40,000
Holding Activities		8,750	-
External trade debtors	3,452,887	25,671,937	45,625
	3,452,887	25,700,308	85,625

During the periods ended at 31 March 2020, sales and services rendered in the Media and Holding Activities segments were obtained predominantly in the Portuguese market, with this market representing approximately 100% of revenue in both segments (97% and 100% in 2020, respectively).

During the period ended at 31 March 2021, for the Technologies market is also dominant, representing 99,79% of revenue (55.4% in 2020).

12. Subsequent Events

In April 2021, following a secondary market transaction, the company sold part of its stake in Artic Wolf, resulting in a gross capital gain of circa 12.3 million euros and a gross cash-in of 36.4 million euros.

Sonaecom SGPS is listed on the Euronext Stock Exchange. Information is available on Reuters under the symbol SNCLLS and on Bloomberg under the symbol SNC:PL.

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 are not 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 but not limited to, changes in regulation, the telecommunications industry and economic conditions and the effects of competition Forward-looking statements
may be identified bu words such as "believes", "axpects", " "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors, analysts and, generally, the 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- ooking information or statements.

Report available on Sonaecom's corporate website www.sonaecom.pt

Investor Relations Contacts [email protected] Tlf: +351 22 013 23 49

AI Terminal

Sonaecom SGPS

1921_10-q_2021-05-28_c24084f5-8f57-4ef1-9677-83b1467ed3ed.pdf

SONAECOM

MANAGEMENT REPORT & ACCOUNTS

Table of contents

II FINANCIAL STATEMENTS

I – MANAGEMENT REPORT

1. Main Highlights

2. Sonaecom Consolidated Results

Introductory notes:

COVID 19

Turnover

Operating costs

EBITDA

Net results

Operating CAPEX

Capital Structure

2.1 Telecommunications

Operational Indicators

Financial indicators

2.2 Technology

Controlled Companies

Minority Stakes (non-exhaustive)

Financial indicators

Million euros

Turnover

Operating costs

Underlying EBITDA

Underlying EBITDA-operating CAPEX

2.3 Media

3. Subsequent events

4. Appendix

Consolidated income statement

Consolidated balance sheet

Million euros

Consolidated levered FCF

Million euros

II - FINANCIAL STATEMENTS

5. Condensed Financial Information

5.1. Sonaecom condensed consolidated financial statements

Condensed consolidated statement of financial position

The Certified Accountant

Condensed consolidated income statement by nature

The Certified Accountant

Condensed consolidated statement of comprehensive income

For periods of 3 months ended on 31 March 2021 and 2020

The Certified Accountant

Condensed consolidated statement of changes in equity

Condensed consolidated cash flow statement

For periods of 3 months ended on 31 March 2021 and 2020

The Certified Accountant

5.2. Notes to the condensed consolidated financial statements of Sonaecom

1. Introductory note

Relevant events occurred during the period

2. Main accounting policies and basis of presentation

3. Change in accounting policies and comparability of consolidated financial statements

Restatement of consolidated financial statements

4. Companies included in the consolidation

5. Changes in the group

a) Acquisitions

6. Investments in joint ventures and associated companies

ZOPT Group provisions

COVID-19

Liquidity and interest rate risk

Credit risk

7. Financial assets at fair value through other comprehensive income

StyleSage

Nextail

IriusRisk

Deepfence

8. Financial assets at fair value through profit or loss

ArcticWolf

Ometria

CB4

Reblaze

Visenze

Daisy Intelligence

Sixgill

Case on IT