3Q20 HIGHLIGHTS - NOS

3Q20

HIGHLIGHTS

3Q20

HIGHLIGHTS

3Q19 4Q19 1Q20 2Q20 3Q20

STRONG TELCO PERFORMANCE REFLECTING DEFENSIVE NATURE OF BUSINESS

Net Adds kk Net Adds kk Net Adds kk

3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20

NETWORK EXPANSION AND LOWER YOY CHURNCONTINUE TO SUPPORT GOOD PAY TV PERFORMANCE

CONSUMERS PREFER CONVERGENT OFFERS WITH AN INTEGRATED VALUE PROPOSITION

Just 10% of TELCO revenues are generated by stand-alone mobile servicewith the vast majority of consumers subscribing to convergent bundles

% NOS fixed subscribers

3Q20

HIGHLIGHTS

PORTUGAL LEADS IN NEXT GENERATION FIXED AND MOBILE SERVICE PENETRATION

AND IS AT THE FOREFRONT OF NEXT GENERATION NETWORK COVERAGE IN EUROPE

PRICES IN PORTUGAL ARE AMONG THE LOWEST IN EUROPE

3Q20

HIGHLIGHTS

CONTINUOUS INNOVATION DRIVING OUR DIFFERENTIATION IN THE CONSUMER MARKETPROVIDING THE BEST COMMUNICATION AND ENTERTAINMENT SOLUTIONS FOR THE HOME

B2B - PARTNERS FOR BUSINESS TRANSFORMATION, FOCUS ON CLIENT PROXIMITY

STRATEGIC PARTNERSHIPS WITH THE MAJOR HYPER-CLOUD PLATFORMS TO PROVIDE HYBRID AND MULTI-CLOUD SOLUTIONS

Millions of homes Before and after lockdown

B E S T I N C L A S S N E T W O R K S PROVIDING OUTSTANDING RESILIENCE TO INCREASED TRAFFIC DEMANDS

FTTH DEPLOYMENT ONGOING AND ON TRACK TO REACH NATIONWIDE COVERAGE

SUCCESSFUL COMPLETION OF TOWER DEAL AND LONG-TERM AGREEMENT WITH CELLNEXSIGNIFICANT VALUE CREATION AND FURTHER REINFORCEMENT OF CAPITAL STRUCTURE

STRATEGIC MOBILE NETWORK SHARING DEAL REACHED WITH VODAFONE

01of all technologies, current and future

02More Environmentally and

03and network quality

High Density areas

Low Density areas

2 764

477

3Q19 3Q20

POSTPONEMENT OF BLOCKBUSTER LAUNCHES AFFECTING A&C PERFORMANCE

POSTPONED POSTPONED

POSTPONED POSTPONED POSTPONED

7.8

18.2

3Q19 3Q20

617 578

652

954

614 681

1 109 1 033

622828

697884

683 693

1510 0 0 51

189 237

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 2020

40

STRATEGIC FOCUS ON SUSTAINABILITY AND RESPONSIBLE MANAGEMENT PUBLICLY RECOGNIZED WITH VIGEO RANKING IN AUGUST

60+50%

#10/24

#5/41

00 WEAK 30 LIMITED 50 ROBUST 60 ADVANCED

0 100

2020

2018

3Q20

HIGHLIGHTS

QUARTERLY RECOVERY IN YEARLY REVENUE GROWTH,ALBEIT STILL PRESSURED BY CINEMAS

Telco AV & Cinema Consolidated

2.4%

-54%

TELCO REVENUES EXCLUDING ROAMING SHOW RESILIENCE IN CURRENT CONTEXT

Telco Revenues Excluding RoamingMillions of Euros

Impact ofRoaming Revenues

Impact of Roaming Revenues

Roaming RevenuesYoY 3Q20 / 19

Roaming Revenues / Telco Revenues FY19

336.6 1.2 1.3 1.4

3Q19 Consumer Business WS & Others 3Q20

OPEX SAVINGS HELPING TO REDUCE REVENUE PRESSURES

EBITDAMillions of Euros

Impact ofRoaming Revenues

EBITDA3Q20 / 3Q19 YoY %

TelcoConsolidated C & AV

160.6172.7 23.6

2.4 9.0

3Q19 Revenues DirectCosts

Non-DirectCosts

3Q20

-7.0%-1.0%

-67.4%

RELEVANT SAVINGS ACHIEVED IN CINEMA BUSINESS

NET INCOME DECLINE ON THE BACK OF LOWER EBITDA MAINLYAT THE CINEMA & AUDIOVISUALS DIVISION AND DUE TO HIGHER D&A

3Q193Q20

PICK-UP IN TELCO CAPEX REFLECTING QUARTERLY FTTHACCELERATION AND INCREASE IN COMMERCIAL ACTIVITY

83.6 89.781.8 79.4

92.0

8.710.0

6.44.1

5.892.2

99.7

88.283.5

97.8

3Q19 4Q19 1Q20 2Q20 3Q20

Telco C & AV

30.6 34.229.8

39.832.4

16.918.4

18.7

8.219.2

47.5

52.648.5 48.0

51.6

3Q19 4Q19 1Q20 2Q20 3Q20

Baseline NW Exp/Subst

36.1 37.033.4

31.4

40.5

3Q19 4Q19 1Q20 2Q20 3Q20

INCREASE IN CAPEX AND DECLINE OF EBITDA IMPACTING OCF,RECEIVAL OF ≈375 MILLION EUROS UPFRONT PAYMENT FROM TOWER DEAL

Telco EBITDA - CAPEX

BALANCE SHEET STRENGTH AND OPERATIONAL PERFORMANCE SUFFICIENT TO MEET FUTURE COMMITMENTS AND SUSTAIN ATTRACTIVE LEVEL OF SHAREHOLDER REMUNERATION

Millions of Euros, x%

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

175 .0

275 .0

375 .0

475 .0

575 .0

675 .0

775 .0

875 .0

975 .0

1 07 5.0

1 17 5.0

Q&A