Oi S A : Management Report 2023

Management Report

Message to the Shareholders

2023 was both promising and challenging for the Company. While we pursued financial balance and opened negotiations on issues related to our concession agreement, we recorded significant growth in our core businesses, Oi Fibra and ICT services at Oi Soluções. At Oi Fibra, revenue growth in 2023 was +11% YoY. In terms of operations, in turn, we continues to seek greater efficiency and customer satisfaction in several segments.

We have been aiming our efforts at expanding the fiber optic broadband operation through the Oi Fibra service. In this segment, we reached 4.0 million connected homes in 2023, a year-on-year growth of 3 percent. Oi Fibra is currently our main product, accounting for approximately 46 percent of Nova Oi's revenue.1

Oi Fibra, which had already been recognized as the carrier with the most satisfied internet customers in Brazil, led the growth of high-speed accesses, with the activation of 1.1 million accesses above 300 megabytes in 20232 (40% of the total among large carriers). Oi Fibra also won the title of fastest internet in ten Brazilian states, and came in second place overall, exceeding the national average speed of the leading carrier in several major cities.

We also highlight the performance, in 2023, in the revenue generated by business portfolio services provided by Oi Soluções, which currently accounts for 24 percent of the Company's revenue. Through this operation, we seek to generate earnings by integrating of fiber infrastructure with a vast portfolio of ICT products, in partnership with startups and key industry players. ICT products posted year-on-year growth of 29% in 2023.

In terms of the regulatory front, we worked hard to adapt our obligations arising from our concession and were successful in making both the Federal Court of Auditors (TCU) and the regulator of the Brazilian telecommunications industry (ANATEL) to accept negotiating an agreement regarding the terms and conditions to adapt our fixed telephony concession to a license model. After the discussions that began in October, we made significant progress this week. The group working in the framework of the SecexConsens (Department of External Control of Consensual Settlement and Conflict Prevention) concluded the negotiation phase of a consensual solution was completed and seeks create conditions to address the key pillars of our Plan. The agreement depends on the confirmation of its terms in the shortest time possible, taking into account the governance assumptions of each party involved. We expect the migration of the STFC concession to a license model, the maintenance of the service in areas where there is no voice alternative, for a time-bound period, with guarantees to be granted and additional commitments, according to the adjustment regulations. In addition, we expects the arbitration procedure to be resumed and the deferral of payment of the renegotiation penalties imposed by ANATEL until the arbitration decision is reached. A final solution to the regulatory issue will make it possible to implement an audacious cost cutting plan, with significant potential efficiencies and a reduction in regulatory restrictions on the sale or encumbrance of real estate assets.

Despite the successful implementation of the Transformation Plan within the scope of the first judicial reorganization, we continued to face major challenges in the pursuit of our long-term sustainability based on three key pillars: namely (i) improving operating performance by increasing the generation of core revenue and adjusting the organizational structure; (ii) resolving the regulatory situation of the concession; and (iii)

• 1 Does not include foreign operations.

• 2 Fonte: ANATEL.

restructuring our future obligations, especially our financial debt. As a result, we filed a petition for a second judicial reorganization in 2023. This time, the proceeding is primarily focused on balancing our capital structure still pressured by financial debts with ECAS holders, bondholders, and domestic banks, most of them indexed to exchange rate fluctuation, as well as claims with take-or-pay suppliers, in particular tower and satellite companies.

Our capital structure was worsened by the delay to close the sales transactions of the UPIs; the dispute with other operators regarding the amount withheld in the sale of the UPI Mobile Assets, which led to the suspension of the down payment of R$1.7 billion; the appreciation of the US dollar against the Brazilian real; in addition to a drop in economic activity in the post-pandemic period, and the deepening of the structural crisis in the fixed telephony segment, and a more challenging competitive scenario in broadband in a context of continued high interest rates combined with the higher household indebtedness with effects on the industry's take-up and churn.

Accordingly, 2023 was marked by intense negotiations that resulted in material events and ensured the reduction of our future obligations, such as the settlement for the compensation of commitments related to the submarine cable LTLA contract, as well as the liquidity necessary to maintain the working capital requirements of operations. In addition, we expect to achieve the restructuring of our financial debt and the claims of the take-or-pay suppliers by adjusting it to our payment ability, without compromising our operation and the expansion of our business in the fiber optic segment, our main product. The main commercial terms to make this restructuring possible were agreed with a group of creditors during the General Meeting of Creditors held on March 26, 2024, which was postponed until April 10 to execute the documentation and then put them to a vote.

In the midst of these challenges, we reaffirm our determination to bring digital access to everyone and with a vision to become leaders in digital solutions and fiber optic connections that improve the lives of people and businesses. Accordingly, we put into practice actions that aim to make us an increasingly sustainable company, in line with the ESG pillars. Our actions are based on caring for our people, including employees, suppliers and customers, the environment, and the way we manage our company.

We have led a journey of appreciation and respect for our employees, even during the most challenging moments. As a result of this process, we received the Top Employers seal for excellence in people management. This certification adds to our other achievements in Human Resources management. These include the Gupy award - 100 HRDs that inspire, and the special achievement as the company that rose the most in the Annuary 360º people management ranking, of Época Negócios 2022, a magazine.

In terms of environmental and social issues, we have been investing in sustainable projects, such as the generation of clean energy, such as the Oi Energy program, and educational projects, such as the NAVE, an institution ranked among the 10 best state public high schools in Brazil.

Finally, we could not fail to mention Oi Futuro, our innovation and creativity institute for social impact, which in 2023 has taken a strategic step to expand its collaboration networks for the new innovation moment of its main programs, making room for new partners and sponsors. Within the new governance with more sponsoring companies alongside us, program management will be charged to Oi Futuro, which already has a cross-disciplinary team.

Economic Situation<0}

At the beginning of 2023, we face a high uncertainty and volatility scenario in the Brazilian economy, even though, from a monetary policy standpoint, the context has differed from much of the global economy.

With inflation under control, as a result of a drop in the prices of food and manufactured goods and a normalization of global production chains, the Central Bank of Brazil began the cycle of interest rate cuts in August that brought SELIC (central Bank's policy rate) 11.75 percent by the end of 2023. The Broad National Consumer Price Index (IPCA) is expected to end 2023 below the inflation target ceiling of 4.75 percent.

At the fiscal level, the Government approved a Tax Reform in December 2023, with potential material impacts on long-term growth.

Economic activity is expected to return to pre-pandemic levels and GDP is expected to grow close to 3 percent, driven by household consumption, which grew close to 4 percent.

In the global market, the highlight is the continuation of the interest rate hike cycle in large economies due to unabating inflation due to the crisis in global supply chains in 2020. The Federal Reserve raised interest rates to 5.5 percent per year, the highest level in decades, a move also followed by the European Central Bank. However, the tighter interest rate policy had no impact on economic activity due to the still high consumption and the resilience of the labor market.

The economic outlook for 2024 is more positive, even though much of the world is keeping in place a tight monetary policy. It is expected that the disinflationary process and interest rate cuts will continue in 2024.

We should not the continuation of monetary easing in Brazil, which may be a positive factor for economic activity growth expectations. Also as regards the fiscal agenda, it is noteworthy that the Brazilian Minister of Finance (Haddad) is still pursuing a zero fiscal deficit target and taking corresponding measures to increase revenue, while being concerned about the Brazil's debt trajectory.

In the United States, the focus is on the start of the interest rate cut cycle, expected to start in May. Positive inflation, employment and growth data support this trend. Elections will be back on the agenda in the middle of the year and may bring additional volatility to the market.

Nova Oi

We are one of Brazil's leading telecommunications service providers, operating nationwide. Nova Oi is intended to be a simpler, nimbler, more efficient company fully focused on customer service and, therefore, it will prioritize agile IT, focused on digital service, omnicanality, guided by data and analytics, and with accelerated time-to-market, allowing leadership to launch the best offers in the market. The new scale will allow the company to strengthen the segments where it already operates and capture new revenues in multiple areas, leveraged by our competitive edges.

To ensure a sustainable operation and strict cost control, we continue to take several actions on different segments, such as a significant increase in the digitalization levels, the continual review and streamlining of processes, and the readjustment of the operating focus on the areas that represent our future.

Throughout our transformation history, we have reached several milestones and lived events aimed at ensuring the continuity of our operations, including the one described belo as the most significant in the year:

•  Core revenue accounting for 70 percent of total revenue in 2023 (+9 p.p. YoY);

•  Generating Opex savings (decrease of roughly 6 percent YoY) focused on discontinued operations and efficiencies;

•  The execution of the onerous scrap assignment contract to offset up to 72 percent of our payment obligations, under the LTLA entered into with Globenet in 2013;

•  Completion of the disposal of several assets, of which we highlight the sale of telecommunications infrastructure sites of the fixed operation and reaching an agreement on the post-closing price adjustment of the UPI Mobile Assets;

•  Receipt of two tranches of an emergency DIP financing, the last of which in January 2024, ensuring the necessary liquidity to support the working capital requirements of the operation;

•  Progress in the discussions with ANATEL in view of the need to solve the fixed telephony concession deficit, for which we initiated arbitration proceeding, , and which is being intensely discussed with the regulatory and supervisory agencies, such as the TCU, as well as the adaptation of the concession regime to a licensing model;

2023 was the first full financial year of operation of Nova Oi. Nova Oi has four main pillars, with different profiles and unique value generation capabilities.

Oi Fibra is our main growth driver, currently accounting for 46 percent of the revenue of the Brazilian operations. We continue to grow organically by leveraging on our huge presence in passed homes in Brazil. There are 22 million homes with V.tal's structure.

Oi Fibra has a financial profile that combines strong revenue growth and increasing profitability and cash flows as the business gains scale.<0}

The second component is Oi Soluções, which represents about 24 percent of the revenue of the Brazilian operations and provides services to the B2B market. It is a core business for Oi that has been bringing significant results by converting Oi into an ICT player and leveraging the existing customer base that already covers more than 80 percent of the largest companies in Brazil in our portfolio. By combining connectivity services with information technology offerings, Oi Soluções represents a transformation of our revenue makeup driven by strong sales of ICT solutions, along with long-term contracts and lower CAPEX, which is characteristic of this new operating model.

The third pillar groups two of our subsidiaries, which together accounted for 5 percent of the revenue from the Brazilian operations. Through this pillar, we captured the additional revenue opportunities in digital services and connected home. As regards our subsidiaries, we hold a material stake in the largest neutral fiber company in Brazil, V.tal, which represents a great future value for us, as V.tal consolidates itself as the operator of the largest pure fiber infrastructure in Brazil, with a unique position to become the main digital infrastructure platform. We also own two wholly-owned subsidiaries, Serede and Tahto. The former operates in field services and the latter operates in call center operations. All subsidiaries have great growth and value creation potential.

The fourth pillar are our legacy services. The legacy currently account for approximately 25 percent of the revenue of the Brazilian operations and has a declining revenues profile, due to the structural transformations of the industry, and cash consumption profile, due to the service abandonment and regulatory requirements. In this sense, Oi has been managing the operating challenges of this unit; however, in a limited manner due to the regulation of the current concession agreement. At the same time, we have been actively negotiating with the regulatory and supervisory agencies the flexibilizationof its obligations by migrating its concession to a license, and by seeking compensation for the economic and financial imbalance and unsustainability of the concession

Additionally, and finally, we continue to strengthen our corporate governance practices, a commitment assumed with the new strategic direction, and has been seeking to implement impact ESG goals-such as soon reaching 100 percent use of energy from renewable sources, associated with a reduction in costs.

Operating and Financial Performance

Operating income

Net revenue totaled R$9.7 billion in 2023, 99 percent of which was generated by the Brazilian operation.

Net Operating Revenue

(R$ millions) 12,604

9,718
Oi Fibra	4,001
Oi Soluções	2,339	4,421
Non-Core Revenues	4,031	2,281
International Operations
2,910
Descontinued Operations	2,119
105
2022	2023

Oi Fibra

Oi Fibra generated R$4.4 billion in revenue in 2023 and posted annual organic growth of 10.5 percent, which accounted for 46 percent of Nova Oi's total revenues.3 Performance was supported by Oi's ability to maintain and grow a robust customer base of 4.0 million connected homes, which reached 4.0 million, which ensured Oi, one of the largest broadband players using fiber in Brazil, the leading position in the fiber market in the regions where it operates,4 with a 17.5 percent market share.

This double-digit revenue growth year over year is significant performance for Oi Fibra, especially when considering the impact of the more challenging market conditions caused by the macroeconomic environment-as available household income dropped to a record level5-and the consequential increase in industry competition, resulting from the constraints to households' budgets combined the persistence of a high level of cost of capital for businesses.

In the course of the year, and as the conditions referred to above evolved, profitability has always been at the heart of Oi's sales strategy, which was leveraged by a unique positioning that has explored its competitive edges and capabilities, while balancing the search for quality growth. As a result, Oi's operating model relied on (i) the development of a strong, pervasive brand, with

• 3 Does not include revenues from foreign operations.

• 4 Does not include the State of São Paulo.

• 5 In June 2023, household income allocated to debt service was at its highest in 18 years (data available since March 2005). Source: Central Bank of Brazil.

an customer-centric stance, by conducting contextualized campaigns that strengthen features adapted to different platforms and an immersive, diverse experience, as a way to build a solid community that would boost Oi Fibra and enhance the brand's reach; (ii) access to a unique fiber optic network, using

V.tal's infrastructure, with a robust capillarity and the possibility of converting the entire plant to higher speeds; (iii) an innovative positioning, by launching a portfolio that used an unique approach of segmenting the offer according to the needs of a customer's usage profiles, using different levels of service, ranging from connectivity solutions, from the most basic to the most advanced, such as Oi Fibra X and tailor-made solutions for small businesses, to service channels; (iv) structuring of sales channels, with a focus on presence, to ensure greater effectiveness of new additions; and (v) a more regionalized approach by adapting channels, pricing, and marketing to local circumstances.

As a result, Oi, which had already been recognized as the carrier with the most satisfied internet customers in Brazil,6 led the growth of high-speed accesses, with the activation of 1.1 million accesses above 300 megabytes in 20237 (40 percent of the total among large carriers). Oi Fibra also won the title of fastest internet in ten Brazilian states (and second place overall), in several major cities exceeding the national average speed of the leading carrier.8 Additionally, Oi kept its average revenue per user (ARPU) stable at R$91.4 (+0.7 percent YoY) in the year by leveraging this unique position to ensure the shielding and defense of its customer base in this context.

Oi Soluções

Oi Soluções net operating revenue ended 2023 at R$2.3 billion, a year-on-year decrease of 2.2%, largely due to the drop in revenue from telecom and other services, resulting from the structural trend in the industry of replacing traditional services, which are mainly based on copper. On the other hand, there was a significant growth in ICT revenues, 29.4% year over year, even though with a partial effect on the stabilization of the total performance of the business unit. In total for the year, the ICT line item already accounted for about 30 percent of the total of Oi Soluções.

The ICT operation is a key core business that has been delivering earnings by transforming our operations. Connectivity combined with comprehensive solutions in the portfolio, from fiber infrastructure to distribution of a broad portfolio of ICT products and services, in partnership with startups and key players in the industry, are the basis for sustaining growth in this segment. This opportunity is also leveraged by our existing customer base, an important asset, since Oi Soluções portfolio is present in more than 80 percent of the largest companies in Brazil, becoming an important access channel to these end customers. Within ICT services, IoT services were the highlight of the year, with a relevant contribution to performance, leveraged by the police video project.

Non-core businesses (Copper, Wholesale, DTH TV and Subsidiaries)

The last component revenue is a combination of different non-core services and includes the operation of copper-based services for retail and enterprise (does not include the corporate market), regulated wholesale, DTH TV, and subsidiaries. Jointly, these services accounted for R$2.9 billion, a year-on-year drop of 27.8 percent. The business line, which already had a declining revenue profile, posted a new acceleration in its retraction trend, mainly due to services

• 6 Included among the large operators, according to ANATEL's 2022 Perceived Quality Satisfaction Survey.

• 7 Source: ANATEL.

• 8 According to the website Best Choice.

related to the STFC concession, emphasizing the different transformations that the industry has been going through, with the arrival of new technologies and changes in consumer habits.

Over the years of accelerated decline in revenue from copper-based services, Oi has been managing the operational challenges of the STFC concession-related services, the operation of which is conditioned by the concession contract regulation. At the same time, we have been actively negotiating with the regulatory and supervisory agencies the flexibilization of its obligations by migrating its concession to a license, and by seeking compensation for the economic and financial imbalance and unsustainability of the concession

Additionally, Oi also has a DTH TV operation. Our approach, aligned with our streamlining process, focuses on core services and seeking overall efficiency. We also evaluate the strategic opportunities included in the context of the DTH TV business, since it was notified by Sky, in October 2023, about the unilateral termination of the term sheet agreed with Oi for the transfer of its DTH TV customer base and use of its IPTV infrastructure by Sky.

Operating costs and expenses

Operating costs and expenses decreased in 2023, by 5.9 percent year over year. We continue to work to cut costs and continue to implement the necessary actions for our operational streamlining, efficiency and digital transformation in order to transform Nova Oi in a lighter, more agile operation.

It is worth highlighting the efficiency results achieved in the personnel line items (-5.2% YoY), through a significant reduction in the total number of employees (approximately 5,000), and a comprehensive reduction in the lines that make up outsourced services (-14.0% YoY).

On the other hand, 2023 was the first full period of the change to the current operating model in fiber (since June 2022), with the dynamics of rental and insurance costs impacted by the contract for the use of V.tal's infrastructure of neutral fiber network. If we disregard these costs in the Rental & Insurance line item, the total reduction in routine operating costs and expenses would be 16.7 percent year over year.

EBITDA

Our consolidated recurring EBITDA totaled a consumption of R$71 million and the results of the Brazilian operations was partially offset by the positive EBITDA of the international operations of R$53 million.

The dynamics of the operations in Brazil were strongly influenced by the decline in revenue from non-core services, which was faster than the decrease in the segment's costs, especially by the dynamics of services using copper technology, given the current regulatory limitations for their profitability management, and the growth in costs to support the growth of the fiber operation. Additionally, 2023 recorded the first full financial year of operation after the disposals of the UPIs Mobile Assets and InfraCo, which distorts the year-on-year comparison.

The total of non-routine items consisted of different non-recurring effects, such as the impact of (i) the reversal of onerous liabilities, within the scope of the LTLA for the use of submarine cables capacity, entered into with Globenet in 2013, due to the execution of the onerous scrap assignment agreement, to offset up to 72 percent of our payment obligations; (ii) the completion of disposal of asset, mainly the post-closing price adjustment agreement related to the disposal of the mobile transaction; and (iii) the impairment of assets related mainly to the legacy services.

Thus, reported EBITDA totaled R$568 million for the year, a reversal compared to consumption in 2022.

Investments

The investments in the Brazilian operations made throughout 2023 totaled R$869 million, a year-on-year decrease of 77.5 percent. This decrease was due to the significant capture of efficiencies after the transition to the current fiber operating model, combined with a development in our Capex allocation model.

In 2023, we invested 79 percent of the total amount in core operations, 66 percent of which in the Oi Fibra service (R$575 million). This amount was dedicated to expanding the business, mainly to activating customers' connection, through the acquisition of

ONTs. On the improvement front of Oi Fibra, we made investments in structuring IT projects that seek to give greater flexibility to the process of creating unique services and customized offers and thus improve customers' user experience. The investments in Oi Soluções consisted of developing the portfolio for the sale of value-added ICT services and implementing customized projects for corporate clients, prioritized according to their profitability and payback period.

The investments in non-core services were concentrated on the network operations and information systems for the purpose of optimizing the existing infrastructure or necessary actions to replace equipment or infrastructure.

Indebtedness and Debt Renegotiation

Our consolidated gross debt totaled R$25.5 billion in December 2023, which corresponds to a 14.27 percent or R$3.2 billion increase compared to debt recorded in December 2022. The annual increase was mainly due to the disbursement of the first tranche of debtor-in-possession (DIP) Financing, amounting to US$200 million (approximately R$1 billion). Added to this are the effects of interest accrual and present value adjustment (AVP) amortization, which contribute to the debt's growth each year, mitigated by the foreign exchange gain from the appreciation of the Brazilian real against the US dollar of 7.21 percent in the period. It should be noted that, as the Company entered into a new judicial reorganization in March 2023, the debt evolution does not include the semiannual interest payments of the 2025 bond amounting to R$824 million, also impacting the increase in the annual debt.

In December 2023, the foreign currency-denominated debt accounted for 65.6 percent of our total debt at fair value and the consolidated average debt maturity was 4.8 years.

As a result, our net debt totaled R$23.3 billion, a year-on-year increase of 22.08 percent, arising primarily from higher gross debt for the period.

Liquity

The long, successive negotiations throughout the year culminated in material events that ensured the continuity of operations and allowed the progress of the negotiations with our main creditors. In this regard, we highlight (i) the conclusion of the sale of the telecommunications infrastructure sites of the fixed-line operation; (ii) the execution of the agreement for the onerous assignment of scrap, to offset up to 72 percent of Oi's payment obligations, under the LTLA entered into with Globenet in 2013; (iii) the conclusion of the agreement on the post-closing price adjustment of the UPI Mobile Assets; and (iv) the receipt of two tranches of an emergency DIP financing, the last of which was completed in January 2024, ensuring the necessary liquidity to support the working capital requirements of the operation.

In this context, we ended the year with consolidated cash of R$2.2 billion, a year-on-year decrease of 31.9 percent. This decrease was mainly due to the volume of Capex and the payment of one-off obligations, such as onerous liabilities and partner suppliers.

Judicial Reorganization Plan

It is worth emphasizing that we are still working on the implementation of the actions aimed at ensuring our long-term viability. Therefore, we recommend tracking the information on the judicial reorganization proceeding of the Company and its subsidiaries Portugal Telecom International Finance B.V. - under Judicial Reorganization and Oi Brasil Holdings Coöperatief U.A. - under Judicial Reorganization ("Debtors" and "Judicial Reorganization", respectively), available to our shareholders on our Investor Relations website(www.oi.com.br/ri)and the Judicial Reorganization website(http://www.recjud.com.br/).

Our ESG Results & Opportunities

In our view, investing in sustainability is in line with our purpose of creating new futures. That is why, even in the midst of all the changes that have been happening in Oi in recent years, we have not neglected the ESG Agenda, which is one of our priorities and is aligned with our firm commitment to the guidelines of the UN Global Compact.

We have implemented several social, environmental, and governance initiatives and projects throughout 2023 as part of our Multiyear ESG Plan. It is the main guide for us to advance in sustainability management across the Company, based on the B3 Corporate Sustainability Index (ISE B3) as one of our main benchmarks. The actions developed allowed to advance 6 percent in the simulation's results (self-reported and unaudited) that we carried out at ISE B3 in the year, reaching 71 percent compliance with the requirements in 2023. We detail below some of these actions that allowed us to reach these results:

Environmental

Environmental Management System (EMS)

As part of the continuous improvement process of Oi's Environmental Management

System, in 2023 we established a specific corporate policy to address Environment topics. We also revised existing operating procedures by adapting them to the transformations that have been taking place at Oi, in addition to establishing some new ones guided by our environmental issues and impacts.

We also revised our environmental emergency plans by seeking to be prepared to minimize, mitigate and repair any damage to the environment and people. Additionally, with the support of the Human Resources team, we revised our employee' job descriptions by assigning environmental management responsibilities to positions at all hierarchical levels.

Management of greenhouse gas (GHG) emissions and climate change

In 2023, the results of the annual monitoring of our greenhouse gas emissions that we carried out, following the guidelines of the Brazilian GHG Protocol Program, allowed us to identify that from 2021 to 2022 we were able to achieve a 45 percent reduction in our Scope 1 emissions and a 67 percent reduction in Scope 2 emissions. These results were achieved through an effort by the entire Company to implement several initiatives: at the level of Scope 1, we decommissioned and optimized assets by replacing obsolete equipment, reducing our fleet, and reduce the use of fossil fuels; and at the level of Scope 2, we introduced the use of renewable energies in our energy matrix.

We also made progress in structuring a climate strategy by identifying opportunities to reduce emissions and reviewing and incorporating climate risks into the corporate risk portfolio. All these initiatives have allowed us to improve our assessment score on the

Carbon Disclosure Project's (CDP) climate change questionnaire from C to B-.

Energy management

Energy management is part of our strategic plan and we are taking steps to diversify our energy sources by migrating to renewable sources to lower costs and contribute to the environment, especially by fighting climate change and reducing carbon emissions.

Our strategy has the following goals:

•  Cutting energy costs;

•  Planning and controlling energy costs;

•  Expanding structuring projects for alternative energy sources;

•  Creating within the Company a rational use of energy mindset.

Currently, 59.47 percent of the electricity we consume comes from renewable sources (biomass, solar and hydroelectric) and our goal is reaching 100 percent by 2025. In the CCEE (Electric Energy Market Chamber) ranking, the Oi group ranks second as a special consumer of the Deregulated Contract Segment (ACL).

Due to the acceleration of the energy structuring projects, by 2023 we will have 436 units in the ACL and a migration projection of another 56 units by 2023, totaling 492 consumption units in the Deregulated Energy Market.

Waste management--reverse logistics and circular economy

Our reverse logistics, refurbishing, and spare parts team, responsible for the reuse of materials removed from customers' homes-such as modems, ONTs (Optical Network Terminals), routers-makes sure that this equipment is refurbished and put back into use thus avoiding the cost of purchasing new equipment and disposing of the material into the environment. In 2023, approximately 485,000 pieces of equipment were recovered, totaling CAPEX savings of R$57 million for Oi.

Recyclable waste resulting from operating activities is sold to recycling companies that resell this raw material to other industries. As a result, we are able to correctly dispose

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