Slides
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2025 1Q Results Conference Call 07 May 2025
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2 2025 1Q Results Conference Call 1Q 2025 in Review Closing of Claranet acquisition, leveraging NOS’s ICT & Tech capabilities and enhancing value proposition Continued growth in consolidated revenues while advancing on operational transformation based on AI solutions and digitalization Healthy Free cash flow generation anchored on solid operating performance and structural lower investment requirements
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31) Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares Acquisition,. FCF excluding non-recurrent FCF grew 9.9% YoY to 64.9M€ 2). Net Income excluding non-recurrent events grew 20.8% YoY to 55.2M€ 2025 1Q Results Conference Call Positive performance across key financial and operational indicators, leading to improved and sustained FCF generation 1Q25 10,680.9K +187.8k Total RGUs 1Q25 1,526.8k +27.7k Unique Fixed Access 1Q25 5,801.4k +311.4k Homes Passed 1Q25 421.4M€ +4.5% Revenues 1Q25 90.3M€ -1.8% CAPEX 1Q25 71.1M€ +12.2% EBITDA AL - CAPEX 1Q25 59.0M€ -13.0% +20.8% Net Income2 1Q25 192.3M€ +4.3% EBITDA 1Q25 83.4M€ +5.2% +9.9% FCF1
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Strategy Update 01
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5 2025 1Q Results Conference Call Strong progression in fixed coverage, with FttH footprint scaling to over 84% of total houses passed with Fixed NGN Fixed NGN Coverage k, HH 5,801.4k Households covered with NOS’ Gigabit fixed network, +63.3 HH passed during 1Q25. 84.1% NOS’Fixed NGN HH covered with FttH, 1.6pp increase QoQ 5,490.0 5,566.7 5,661.5 5,738.1 5,801.4 1Q24 2Q24 3Q24 4Q24 1Q25 +5.7% 1Q24 2Q24 3Q24 4Q24 1Q25 76.5% 78.0% 80.2% 82.5% 84.1% +7.6pp FttH Coverage as a percentage of Fixed NGN Coverage %
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6 2025 1Q Results Conference Call 5G leadership enabling the launch of innovative and socially inclusive initiatives 1st 5G+ Voice Over New Radio call 5G on 1st football stadium for women football 5G to combat social isolation in the elderly First to launch 5G+ (5G stand alone) in Portugal 4.787 5G stations 99.6% 5G outdoor coverage 5G Leadership… … in the network … in innovation … in use cases 97.1% 5G population coverage
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7 2025 1Q Results Conference Call Leadership in Portuguese patent applications in Europe for the 2nd year in a row 22 patent applications submitted by Nos Inovação in 2024 Patents submitted included developments in AI technologies focused on voice and accessibility, cybersecurity, metaverse, blockchain
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8 2025 1Q Results Conference Call ICT is a strategic pillar for NOS, built on a broad client base, brand recognition, convergent solutions and recognized capabilities Broad enterprise, including Public administration client base—offering extensive market reach and relevance Large Customer Base Enabling up-sell and cross-sell of IT solutions Opportunities to Up-sell / Cross Sell In networks, Cybersecurity, Cloud and Managed Services Strong Capabilities Synonymous with digital innovation, security, and reliability Established brand
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9 2025 1Q Results Conference Call Strategic acquisition of Claranet Portugal, S.A. concluded in March 2025 21 22 23 27F +12% Portuguese B2B ICT revenue, B€ The Portuguese ICT market has been experiencing intense growth, with its value expected to double between 2021 and 2027 NOS is poised to make a strong entry into the ICT market, leveraging inorganic growth to drive its expansion Desire to expand beyond traditional telecom focus Initiated by selling tech products and solutions Entering the Tech Space 1 Establishing a Tech Branch 2 Scaling Through Inorganic Growth Created a dedicated unit to develop and deliver innovative technological solutions Strategic bet on generative AI with an investment through DareData While progress has been made, NOS has started from a small base 3 Inorganic growth is essential to gain scale and establish as a key player in the tech space
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10 2025 1Q Results Conference Call Strategic program to develop advanced digital solutions and AI at scale Scale AI across NOS 125+ AI use cases identified Customer Service, Sales, Marketing, Network, Technical Services, IT, … 250+ people already trained in GenAI Target: 100% of NOS Empowering people to drive AI adoption FAAST GEN AI LEARNING PROGRAMME AI DRIVEN SOLUTIONS IMPLEMENTED SCAILE PROGRAMME Service Automation e.g. Chat Bot WOO 2025 focused in 6 different execution programs Workforce augmentation e.g. Customer Service Augmentation Intelligent automation e.g. Accounts Payable Processing Smart pairing e.g. Technical Support Pairing Machine learning & experimental optimization e.g. Smart Payment Agreements Personal & vertical productivity e.g. NOS-GPT
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Operational Performance 02
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12 2025 1Q Results Conference Call Total RGUs positive annual growth, despite new competitive landscape Total RGUs, EoP, k 5,384 5,529 4,585 4,676 524 1Q24 476 1Q25 Mobile Fixed Wireless 10,493 10,681 +1.8% +187.8k +1.8% RGUs Total RGUs net additions vs 1Q24 • Fixed RGUs increased by 90.7k (+2%), offsetting legacy wireless net loss of 47.8k (-9%) • Mobile RGUs added 144.9k (+3%), driven by post-paid +2.7% +2.0% -9.1%
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13 2025 1Q Results Conference Call 1,499 1,527 1Q24 1Q25 +27.7 Fixed Access, EoP, k Fixed Access Net adds, QoQ k +27.7k +1.9% Fixed Access Total Fixed Access net additions vs 1Q24 Overall Fixed access NAs of 2.5k QoQ, due to new competitive environment. Naked internet gaining momentum (mainly from WOO). 8.0 2.5 1Q24 1Q25 Unique fixed access annual growth with Q1 showing new competitive environment
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141) Change in mobile pre-paid criteria to write-off non-active cards in 1Q25 2025 1Q Results Conference Call Mobile pre-paid Net adds, QoQ k -54.6 -85.1 1Q24 1Q25 -108.2 -122.8 97.6 86.8 1Q24 1Q25 +144.9k +2.7% RGUs Total Mobile RGUs net additions vs 1Q24 • Post-paid RGUs increase of 350k (+8.7%) offset by Pre-paid RGUs decrease of 206k (- 15.3%) Post-paid mobile NAs growth QoQ (+86.8k) with low impact from new competitive environment. Pre-paid negative NAs QoQ (-85.1k) with two main drivers: • ~75% from seasonal impact; • ~25% due to competitive dynamics. Including restatement1, mobile pre-paid declined by 123k. Mobile post-paid Net adds, QoQ k restatement Mobile RGUs, E o P, k 4,039 4,389 1,346 1,140 1Q24 1Q25 5,384 5,529 +144.9 Pre-paidPost-paid Mobile Post-paid continued to post positive performance QoQ
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15 2025 1Q Results Conference Call Cinema affected by calendar shift and postponed movies Audiovisuals benefiting from the success of NOS’ Audiovisuals portfolio Cinema tickets sold k, YoY % Ticket sales were negatively impacted by the earlier Easter holiday in 2024 and postponed movies, with ticket sold down 4.2% YoY , while revenue per ticket increased 2.4% to 6.3€. Audiovisuals segment benefited from successful portfolio lineup including titles such as “Mufasa”, “Sonic 3” or “Captain America”, all ranked on Top4 movies by tickets sold in Portugal. 14.7% 1Q24 -35.0% 2Q24 -5.3% 3Q24 19.2% 4Q24 -4.2% 1Q25 1,722.6 1,322.8 2,661.2 2,038.5 1,650.5 1Q25 Portugal Top 3 movies by tickets sold1 k NOS NOS Audiovisuais’ distribution 362.5 286.1 159.0 NOSNOS6.3€Revenue per ticket 6.1€ +2.4% 1) Source: ICA
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Financial Performance 03
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17 2025 1Q Results Conference Call Consolidated Revenue grew 4.5%, supported by positive performance both in Telco and A&C Consolidated Revenue, M€, YoY % 403.3 412.2 432.7 448.0 421.4 5.7% 1Q24 4.7% 2Q24 6.1% 3Q24 8.1% 4Q24 4.5% 1Q25 389.0 400.7 409.3 430.2 406.7 5.4% 1Q24 6.1% 2Q24 6.3% 3Q24 7.2% 4Q24 4.6% 1Q25 Telco Revenue, M€, YoY % 11.6% 1Q24 -20.1% 2Q24 1.7% 3Q24 21.6% 4Q24 1.5% 1Q25 22.8 19.7 32.7 27.1 23.1 A&C Revenue, M€, YoY %
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18 2025 1Q Results Conference Call Operational performance and efficiencies programme kept driving EBITDA growth 45.6%Margin 45.7% -0.1pp 173.9 178.9 197.8 170.3 181.4 6.2% 1Q24 6.7% 2Q24 6.9% 3Q24 10.5% 4Q24 4.3% 1Q25 184.5 187.6 213.0 182.5 192.3 6.3% 1Q24 4.8% 2Q24 6.3% 3Q24 11.6% 4Q24 4.3% 1Q25 7.2% 1Q24 -23.7% 2Q24 -1.7% 3Q24 28.4% 4Q24 3.1% 1Q25 10.6 8.7 15.2 12.2 10.9 Consolidated EBITDA, M€, YoY % Telco EBITDA, M€, YoY % A&C EBITDA, M€, YoY % 44.6%Margin 44.7% -0.1pp 47.2%Margin 46.5% +0.7pp
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19 2025 1Q Results Conference Call CAPEX downward trajectory maintained, with a structural decline in Telco expansionary investment of -23.5% Y o Y -1.8% -1.6M€ CAPEX decreased 1.8% yoy to 90.3M€, driven by A&C decline of 1.6M€ and structural decline in Telco expansionary CAPEX. A&C CAPEX down 29.2% yoy to 4.0M€, as 2024 CAPEX was boosted by 2023’ blockbuster launch postponement to 2024 due to screenwriters' strike. Telco CAPEX stable yoy, reflecting different movements: • Expansionary CAPEX down 23.5% yoy, as 5G rollout is complete and FttH growth continues through a more efficient mix of own build, network sharing, and wholesale agreements. • Baseline CAPEX increased 6.4% due to a temporary peak in IT licences. Total CAPEX, M€ 12.4 37.9 36.1 5.6 1Q24 -2.9 Telco - Expansionary Telco - Baseline 0.5 Telco - Customer Related -1.6 Audiovisuals and Cinema Exhibition 1Q25 91.9 2.4 90.3 -1.8% Telco - Expansionary Telco - Baseline Telco - Customer Related Audiovisuals and Cinema Exhibition -23.5% +6.4% +1.3% -29.2% 9.5 40.3 36.6 4.0 YoY, %
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20 2025 1Q Results Conference Call EBITDA AL - CAPEX up 12.2% Y o Y, reflecting improved operational performance and efficient CAPEX execution EBITDA AL - CAPEX 1Q24 18.1 Revenue -12.0 OPEX AL 1.6 CAPEX EBITDA AL - CAPEX 1Q25 63.4 71.1 12.2% EBITDA AL – CAPEX Evolution, M€
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21 2025 1Q Results Conference Call Consolidated Net Income decreased 13.0% in 1Q25 -13.0% -8.8M€ Consolidated Net Income decreased 13.0% to 59.0M€, including activity fees recorded in 1Q24 and 1Q25. +20.8% +9.5M€ Recurring consolidated Net income growth to 55.2M€: • EBITDA growth contributed an additional 7.9M€, reflecting solid operational execution • Net financial expenses benefited from a favourable interest rate environment leading to a 4.7M€ yoy reduction • Share of JV benefited from a reversal of a SportTV provision (4.5M€) and from ZAP results. Net Income, M€ EBITDA 1Q251Q24 -22.2 Activity fees 1Q241 7.9 -1.4 D&A -1.1 Non-current income/costs 4.7 Net Financial expenses 6.7 Share of JV results -7.3 Taxes, minorities and Desc. Units Activity fees 1Q251 67.8 45.7 55.2 59.03.8 -13.0% +20.8% 1) Net Income excluding post-tax Activity fees
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22 2025 1Q Results Conference Call Solid operating performance and lower investment volume led to healthy Free Cash Flow growth in 1Q25 +4.1M€ +5.2% Including non-recurrent events in 1Q24 and 1Q25, FCF increased by 5.2% to 83.4M€. +5.8M€ +9.8% Recurring Free Cash Flow growth to 64.9M€, driven by robust EBITDA AL growth and structural decline in CAPEX and lower interest paid. FCF ex Dividends, M€ 1Q24 -20.2 Activity fees 1Q24 OCF 4.1 Interest Paid 0.3 Income Taxes Paid -6.2 Other 1Q25 18.5 Activity fees 1Q25 79.3 59.1 64.9 83.4 7.7 +5.8 +4.1 1) FCF excluding Activity fees
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231) Includes 340.0M€ of non-issued commercial paper and 12.4M€ of cash and cash equivalents 2025 1Q Results Conference Call Financial leverage remains conservative at 1.5x, with average cost of debt benefiting from a more favourable interest rate environment 1.5x NFD/ EBITDA AL, well below reference level of ~2x. 3.3% Average cost of debt, -0.29pp qoq, benefiting from lower interest rate environment. 352.4M€ Cash and liquidity position1 as of 31st March. NFD, M€ & NFD / EBITDA AL, x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 1.7x 1Q24 1.7x 2Q24 1.5x 3Q24 1.4x 4Q24 1.5x 1Q25 1,015.1 1,058.1 942.3 912.5 984.0 0 5 10 15 20 25 30 35 40 45 50 0 1 2 3 4 5 6 7 8 9 1Q24 2Q24 3Q24 4Q24 1Q25 4.1% 4.1% 4.0% 3.6% 3.3% Average cost of debt, %
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RUA ACTOR ANTÓNIO SILVA, N.º 9, CAMPO GRANDE, 1600-404 LISBOA www.nos.pt/ir RUA ACTOR ANTÓNIO SILVA, N.º 9, CAMPO GRANDE, 1600-404 LISBOA www.nos.pt/ir