NOS SGPS S A : 4Q23 Results

FY23 Results Conference Call

6 March 2024

A bastion of profitable growth, cash generation and sustainable returns

Strategic choices driving operational success and financial resilience

Capital allocation focus on preserving competitive advantage, balance sheet quality and consistent and attractive shareholder remuneration

2

A bastion of profitable growth, cash generation and sustainable returns

A bastion of profitable growth, cash generation and shareholder returns

Revenues

4Q23 FY23

414.3M€ 1,597.5M€

+4.2% +5.0%

EBITDA

4Q23 FY23

163.6€ 716.7M€

+8.4% +10.1%

EBITDA AL

4Q23 FY23

134.5M € 603.2M€

+12.3% +10.1%

CAPEX

4Q23 FY23

94.8M€ 387.6M€

-28.0%-21.8%

Strong revenue performance, up 4.2% in 4Q23 and 5.0% in FY23, the culmination of consistent delivery across all quarterly results

OCF, EBITDA AL - CAPEX, up 163.8M€ to 215.6M€ in FY23, driven by strong EBITDA AL

EBITDA AL -

CAPEX

4Q23 FY23

39.7M€ 215.6M€

+51.7M€ +163.8M€

Net Income1

4Q23 FY23

54.7M€ 181.0M€

+444.7% +30.7%

ROCE

FY23

9.7%

-0.5pp

Ordinary DPS

FY23

0.350€

+25.9%

performance and lower investment requirements

Sustained attractive shareholder remuneration, with an ordinary DPS of 0.350€, representing a dividend yield2 of 10.6%

1) Excludes Cellnex impact; 2)Based on closing price of 3.292€ on March 5, 2024	4

Telco is the main contributor to consolidated revenue performance

2023 Consolidated Revenue M€
1,521.0	63.5	9.8	3.1	1,597.5
2022	Telco	Audiovisuals	Others and	2023
		& Cinema	Eliminations
Var %	+4.3%	+11.0%	+8.2%	+5.0%
2023 vs
2022
1) 9M23 ANACOM

+5.0%

Yoy growth in Consolidated Revenues driven primarily by Telco B2C revenues (+6.2%), and Audiovisuals & Cinemas revenues (+11.0%)

In 4Q23, Consolidated Revenues grew yoy by 4.2%, Telco Revenues by 5.5% whilst A&C Revenues declined 17.9% due to weaker quarter for cinema going and a lower share of movie distribution.

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Operating profitability is grounded on quality of revenue mix and structural efficiencies and business transformation, driving margin expansion

2023 Consolidated EBITDA AL M€

Quarterly EBITDA AL yoy growth %

						Consolidated
yoy %		+10.1%	+10.6%	+3.6%		Telco
	547.7	603.2								17.3%
									12.3%	12.3%
			566.9					9.9%	10.0%
					7.1%		9.7%
					7.1%	6.3%
				36.3
	2022	2023	Telco	Audiovisuals	4Q22	1Q23	2Q23	3Q23	4Q23
				& Cinema
Margin	36.0%	37.8%	+37.0%	+36.5%

+10.1%

2023 Consolidated EBITDA AL yoy growth, +12,3% in 4Q23

+1.8pp

Expansion in margin yoy, led by strong revenue performance and cost management with structural efficiencies

+17.3%

4Q23 Telco EBITDA AL growth due primarily to strong revenue performance (+5.5%) and OPEX control (+1.9%).

6

As guided, peak CAPEX is behind us, with expansionary Capex decreasing more than 50% versus last year

2023 CAPEX M€

Telco - Expansionary		Telco - Customer Related
Telco - Baseline		Audiovisuals and Cinema Exhibition

		-21.8%
495.9
163.9	-86.2				387.6
	-13.7	-5.4	-3.1
		77.7
161.3					147.6
147.9					142.5
22.9					19.8
2022	Telco -	Telco - Baseline	Telco - Customer	Audiovisuals and	2023
	Expansionary		Related	Cinema Exhibition
Var %	-52.6%	-8.5%	-3.7%	-13.3%
2023 vs
2022

-21.8%

CAPEX decreased more than 100 M€ to 387.6M€, decreasing in all lines and in particular expansionary Telco CAPEX

-52.6%

Yoy decline of telco expansionary CAPEX with completion of accelerated 5G rollout

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Structural growth in EBITDA AL - CAPEX, underpinned by strong EBITDA AL performance and significant decrease in CAPEX

2023 EBITDA AL - CAPEX M€
	1 597.5
		-880.8
			716.7		603.2
				-113.5
						-387.6	215.6
	Revenues	OPEX	EBITDA	Leasings	EBITDA AL	CAPEX	EBITDA AL
							-CAPEX
Var %	+5.0%	+1.2%	+10.1%	+9.8%	+10.1%	-21.8%	+316.2%
2023 vs
2022

4.2x

EBITDA AL - CAPEX increase in 2023 vs last year, with strong operational performance and reduced investment requirements driving OCF generation

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Strategic choices driving operational success

Strategic decision to lead in 5G is propelling commercial momentum and increased customer experience in mobile

NOS' 5G Coverage %
87.0%	94.0%
2022	2023

5G sites #

4Q23 ANACOM

4,235

3,233

1,459

Operator 1 Operator 2

NOS

Best mobile network

NOS' mobile network was considered by Ookla®1 to be the fastest in Europe, placing a Portuguese network at the forefront of the European speed ranking for the first time. NOS obtained a Speed Score of 183.4, well ahead of other European networks.

94%

NOS has already reached 94% population coverage with 5G, the highest in Portugal and well ahead of regulatory requirements

1) https://www.speedtest.net/awards/mobile/?	10