1Q09 RESULTS ANNOUNCEMENT PRESENTATION 6 MAY 2009 · 5/6/2009 · 1q08 2q08 3q08 4q08 1q09 27,0 29,4 35,7 48,4 46,0 1q08 2q08 3q08 4q08 1q09 2,2 5,5 7,8 5,4 8,1 1q08 2q08 3q08 4q08

1Q09 RESULTS ANNOUNCEMENT PRESENTATION

6 MAY 2009

DISCLAIMER

This presentation contains forward looking information, including statements which constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and assumptions of our management and on information available to management only as of the date such statements were made.Forward-looking statements include(a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and pricing for our products and other aspects of our business, possible or future payment of dividends and share buy back program; and(b) statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “intends”, “is confident”, “plans”, “estimates”, “may”, “might”, “could”, “would”, and the negatives of such terms or similar expressions.

These statements are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause the assumptions and beliefs upon which the forwarding looking statements were based to substantially differ from the expectation predicted herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company’sservices, technological changes, the effects of competition, telecommunications sector conditions, changes in regulation and economic conditions. Further, certain forward looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives, expectations, estimates and intentions expressed or implied in such forward-looking statements. Additionally, some of these statements refer to board proposals to be submitted to ZON - Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. (“Multimedia” or “ZON”) AGM and subject to (i) its approval by Multimedia’s shareholders, (ii) the market conditions and (iii) the ZON’s financial and accounting position as revealed in the financial statements approved by Multimedia’s AGM.Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to provide reasons why actual results may differ. You are cautioned not to place undue reliance on any forward-looking statements.ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission (“SEC”) pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. The SEC file number for PT Multimedia’s exemption is No. 82-5059. Under this exemption, ZON Multimedia is required to post on its website English language translations,versions or summaries of certain information that it has made or is required to make public in Portugal, has filed or is required to file with the regulated market Eurolist by Euronext Lisbon or has distributed or is required to distribute to its security holders.

This presentation is not an offer to sell or a solicitation of an offer to buy any securities.

TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05

1. Key Highlights

4

4

RGUsRGUs

3P Customers Penetration3P Customers Penetration

ARPUARPU

Digital “Funtastic” Subscribers» 184 Thousand ZON BOXES installed

Digital “Funtastic” Subscribers» 184 Thousand ZON BOXES installed

Broadband SubscribersBroadband Subscribers

Fixed Voice SubscribersFixed Voice Subscribers

∆ % 1Q09/1Q081Q09

+23.9%

+19.1 pp

+3.5%

+35.0%

+31.3%

X3

3116.4 thousand

29%

€ 32.7

539.6 thousand

546.1 thousand

419.4 thousand

Continued Strong Operational Performance

Supported by solid financial indicators

5

5

Total Operating RevenuesTotal Operating Revenues

Revenues from Pay TV, Broadband and VoiceRevenues from Pay TV, Broadband and Voice

EBITDAEBITDA

EBITDA MarginEBITDA Margin

Net IncomeNet Income

201.5 Million Euros

64.3 Million Euros

31.9%

19.5 Million Euros

+7.1%

+9.2%

+9.1%

+0.6pp

(6.7)%

181.5 Million Euros

∆ % 1Q09/1Q081Q09 ConsensusReuters Poll

203.1 Million Euros

n.a.

63.7 Million Euros

31.4%

16.3 Million Euros


2. Developments in 1Q09

Key Developments 1Q09

7

7

This was another busy and

dynamic quarter for ZON:

• Largest offer of HD channels (8 channels, including sports and movies);

• New TV channels live TVI24 and Brava HDTV;

• VOD service lauched in January;

• New HD ZON Box;

• Repositioning of DTH offers;

• myZONcard (loyalty card with cinema exhibition);

• 100Mbps ZON Net Wideband launched;

• ZON3Fly Bundles with 100 and 50 Mbpslaunched;

• Anacom study attests the quality ofCable Broadband service vs ADSL;

• Pre-paid Mobile Broadband launched;

• New 8 cent/min. Mobile Voice Offer;


3. Continued Strong Operating Performance

+2.2%

400417

446

496

540

1Q08 2Q08 3Q08 4Q08 1Q09

416 431 451

479

546

40

519

1Q08 2Q08 3Q08 4Q08 1Q09ZON Acquisitions

139

204254

327

419

19

347


9

Continued Strong Operational Momentum

9

2.515 2.608 2.690

2.834

3.116148

2.982


RGU[Net Adds, Total EOP - Thousands]

+23.9%

1.561 1.557 1.539

1.525

1.595

88

1.614

1Q08 2Q08 3Q08 4Q08 1Q09

ZON Acquisitions

Basic Subscribers[Net Adds, Total EOP - Thousands]

Broadband Subscribers[Net Adds, Total EOP - Thousands]

+31.3%

Fixed Voice Subscribers[Net Adds, Total EOP - Thousands]

+202.6%

Digital Extended Basic Subscribers

[Net Adds, Total EOP - thousands]

+35.0%

+13.4 (3.6) (17.9) (14.0) (18.2) +15.7 +14.9 +20.2 +28.0 +27.0

+101.9 +93.7 +81.4 +144.4 +134.2

+17.7 +17.1 +29.0 +50.0 +43.7+55.1 +65.2 +50.1 +73.2 +72.8

10

Driving Triple Play and Digital Penetration

10

1,611,68

1,751,84

1,94

1Q08 2Q08 3Q08 4Q08 1Q09

RGUs per Subscriber

[units]

+20.1%

10%14%

18%

23%

29%

1Q08 2Q08 3Q08 4Q08 1Q09

31,6

31,8

32,0

32,4

32,7

1Q08 2Q08 3Q08 4Q08 1Q09

53

91

184

3Q08 4Q08 1Q09

ZON Boxes Installed

[thousands]

+247.8%

Triple Play Subscribers Penetration of Cable Base

+19.1pp

Blended ARPU

[euros]

+3.5%

* Excluding the acquisitions of TVTel and Parfitel operations, Blended ARPU would have been 32.7 euros in 4Q08 and 33.2 euros in 1Q09.

**

11,9%

15,6%

19,5%

24,2%

57,0%

29,0%

ComHem

UPC

Liberty Global

Telenet

Virgin Media

ZON

ZON leads Triple Play growth

11

8,9%

11,6%

15,4%

17,7%

49,5%

6%

ComHem

UPC

Liberty Global

Telenet

Virgin Media

ZON

ZON IS THE FASTEST GROWING EUROPEAN CABLE OPERATOR IN TERMS OF TRIPLE PLAY PENETRATION

Triple Play Penetration 2007[%]

Triple Play Penetration 1Q09[%]

3,0pp4,0pp 4,1pp

6,4pp7,5pp

22,6pp

ComHem UPC Liberty Global

Telenet Virgin Media

ZON

Triple Play Penetration Growth (2007-1Q09)[pp]

Source: Company Reports and publicly available data.


3. Supported by Solid Financial Indicators

13

Revenues driven by RGUs and ARPU growth

13

188,1 189,2 193,1206,2 201,5

1Q08 2Q08 3Q08 4Q08 1Q09

Operating Revenues

[millions of euros]

+7.1%

166,5171,2 170,5

180,1 181,8

1Q08 2Q08 3Q08 4Q08 1Q09

Pay TV, Broadband and Voice Revenues

[millions of euros]

+9.2%

14,9 14,015,7

19,1

14,3

1Q08 2Q08 3Q08 4Q08 1Q09

Audiovisual Revenues

[millions of euros]

(3.8%)

12,8

9,2

14,013,3 12,6

1Q08 2Q08 3Q08 4Q08 1Q09

Cinema Revenues

[millions of euros]

(1.3%)

14

Costs’ y.o.y. Growth Driven by Strong

Commercial Activity

14

129 126 129

148137

1Q08 2Q08 3Q08 4Q08 1Q09

Operating Costs

[millions of euros]

+6.2%

60,2 58,9 58,461,6

56,2

1Q08 2Q08 3Q08 4Q08 1Q09


Commercial Activity

15

11,5 11,513,1

16,714,6

1Q08 2Q08 3Q08 4Q08 1Q09

W&S

[millions of euros]

+26.6%

Direct Costs

[millions of euros]

(6.7%)

- Headcount increase partly due to the acquisitionsof TVTel and the operations of Parfitel and to incorporation of Pro Share (previously outsourced);

- Like-for-like growth of around 7%, includingaverage increase in wages of 2%;

- Impact of Share Plan;

-Lower programming costs reflecting one month’s impact of contract renegotiation with SIC Notíciasand other content costs;

- Decline in advertising share revenue with contentproviders, on the back of declining advertisingrevenues;

44,3

41,042,5

43,3

47,8

1Q08 2Q08 3Q08 4Q08 1Q09

13,2 14,5 15,1

26,3

18,7

1Q08 2Q08 3Q08 4Q08 1Q09

16


Commercial Activity

16

Other Operating Costs

[millions of euros]

+7.9%

Commercial Costs

[millions of euros]v

+41.9%

-Higher sales commission charges, due to increasein number of services subscribed;

- 2.7 million euros increase in COGS due to MVNO launch;

-Supplies and External Services growth of 15% dueto increased call centre and customer supportactivity;

- Network investment and changes in broadcastingfrequencies leading to higher customer supportactivity;

58,963,3 64,0

58,2

64,3

1Q08 2Q08 3Q08 4Q08 1Q09

Operational Profitability – Solid EBITDA Growth

17

EBITDA, EBITDA Margin

[millions of euros, %]

+9.1%

31.3% 33.5% 33.2% 28.2% 31.9%

20,9 20,3

9,7

(2,9)

19,5

1Q08 2Q08 3Q08 4Q08 1Q09

27,0 29,435,7

48,4 46,0

1Q08 2Q08 3Q08 4Q08 1Q09

2,2

5,5

7,8

5,4

8,1

1Q08 2Q08 3Q08 4Q08 1Q09

18

Net Income

18

Net Income

[millions of euros](6.7%)

TOTAL NET RESULTS OF 19.5 MILLION EUROS

NET FINANCIAL RESULTS WERE POSITIVE BY 8.7 MILLION EUROS

NET FINANCIAL RESULTS WERE POSITIVE BY 8.7 MILLION EUROS

DUE TO NET INTEREST CHARGES OF 8.1 MILLION EUROS AND A PRE-TAX CAPITAL

GAIN OF 16.9 MILLION EUROS FROM SALE OF 40% AT LISBOA TV

DEPRECIATION INCREASED BY 70.6% TO 46.0 MILLION EUROS

DRIVEN BY HIGHER INVESTMENT IN TERMINAL EQUIPMENT, LONG TERM

CONTRACTS AND DEPRECIATION OF THE FAIR VALUE OF TVTEL AND PARFITEL

ASSETSNet Interest

[millions of euros]

+262.5%

D&A

[millions of euros]+70.6%

24,3

44,80,4

0,9

24,7

45,7

1Q08 1Q09

"Baseline" CAPEX Non-Recurrent CAPEX

19

Customer-driven CAPEX y.o.y. increase

19

7,3

23,33,6

3,9

13,4

17,7

24,3

43,9

1Q08 1Q09

Terminal Equipment Other Pay TV, Broadband and Voice Infrastructure

Baseline CAPEX

[millions of euros]

+80.8%

Total CAPEX

[millions of euros]

+84.7%

ARRANJAR CAPEX

20

Sound Capital Structure and Adequate Debt

Maturity

20

Net Financial Debt

[millions of euros]

2,3

2,1

4Q08

1Q09

Net Financial Debt / EBITDA

[x]

552,5

18,2

18,6

6,7

2,2

14,8

3,2

524,9

4Q08

Working Capital

EBITDA - CAPEX

Disposals

Dividends

Long Term Contracts

Other items

1Q09


4. In brief

22

In Brief

22

MARKET LEADERSHIP IN PORTUGAL

CONTINUED OPERATIONAL GROWTH MOMENTUM

SUPPORTED BY SOLID FINANCIALS

INCLUDING A SOLID CAPITAL STRUCTURE WITH ADEQUATE MATURITY


Appendix

• FinancialHighlights• Operational Highlights

24

(Millions of Euros) 1Q08 1Q09 ∆ y.o.y.

Operating Revenues 188.1 201.5 7.1%

Pay TV, Broadband and Voice 166.5 181.8 9.2%

Audiovisuals 14.9 14.3 (3.8%)

Cinema Exhibition 12.8 12.6 (1.3%)

Other (6.0) (7.2) 19.7%

EBITDA (1) 58.9 64.3 9.1%

Income from Operations (2) 31.9 18.3 (42.7%)

NET INCOME 20.9 19.5 (6.7%)

CAPEX 24.7 45.7 84.7%

EBITDA minus CAPEX 34.2 18.6 (45.6%)

Net Financial Debt (3) 77.9 524.9 n.a.

EBITDA margin (%) 31.3% 31.9% 0.6pp

CAPEX as % of Revenues 13.2% 22.7% 9.5pp

Net Financial debt / EBITDA [x] (3) 0.3x 2.1x n.a.

(1) EBITDA = income from operations +depreciation and amortisation. (2) Income from operations = income before financials and income

taxes +work force reduction programme costs + impairment of goodwill + losses (gains) on disposal of fixed assets + other costs/income.

(3) Net Debt excluding Long Term Contracts.

Financial Highlights

24

25

Operational Highlights

25

1Q08 1Q09 ∆ y.o.y.

Homes Passed ('000) 2,774 3,058 10.2%

RGUs ('000) 2,515 3,116 23.9%

Basic Subscribers 1,561 1,595 2.2%

Digital Extended Basic 400 540 35.0%

Broadband Internet 416 546 31.3%

Fixed Voice 139 419 202.6%

Mobile Voice - 16 n.a.

Net Adds RGUs ('000) 101.9 134.2 31.6%

Basic Subscribers 13 (18) (235.4%)

Digital Extended Basic 18 44 146.5%

Broadband Internet 16 27 72.6%

Fixed Voice 55 73 32.1%

Mobile Voice - 9 n.a.

Blended ARPU (€) 31.6 32.7 3.5%

Revenues per ticket (€) 4.1 4.3 4.9%

Tickets sold ('000) 2,200 1,950 (11.3%)

Pay T

V, B

road

ban

d a

nd

Vo

ice

Cin

em

a

Exh

ibit

ion

Contacts

26

José Pedro Pereira da CostaCFO

Maria João CarrapatoInvestor Relations

[email protected]

ZON Multimedia

Avenida 5 de Outubro, 2081069-203 Lisboa, Portugal

Tel.: +351 21 782 47 25Fax: +351 21 782 47 35

Documents

1Q09 RESULTS ANNOUNCEMENT PRESENTATION 6 MAY 2009 · 5/6/2009 · 1q08 2q08 3q08 4q08 1q09 27,0 29,4 35,7 48,4 46,0 1q08 2q08 3q08 4q08 1q09 2,2 5,5 7,8 5,4 8,1 1q08 2q08 3q08 4q08