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GOVERNING BODIES
As elected at the General Shareholder Meeting held on 21 April 2022.




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1Q23 HIGHLIGHTS

We had a strong start to 2023, with accelerated growth and very positive momentum in our core Telco business. Our
focus on customer experience and technological leadership continues to lead to robust operational performance, with
strong KPI growth. These positive results demonstrate our commitment to delivering superior network, service, and
product quality to our customers.

Table 1.

1Q23 Highlights 1Q22 1Q23 1Q23 / 1Q22


Operating Highlights ('000)

Total RGUs 10,393.3 10,871.7 4.6%

Mobile RGUs 5,423.5 5,811.7 7.2%

Fixed Pay TV RGUs 1,401.8 1,441.8 2.9%

Convergent + Integrated Customers 1,036.2 1,104.3 6.6%

Fixed Convergent + Integrated Customers as % of Fixed Access Customers 65.2% 67.9% 2.8pp

Residential ARPU / Unique Subscriber With Fixed Access (Euros)(1) 47.1 49.3 4.6%

Homes Passed 5,134.4 5,336.8 3.9%

% FttH 54.0% 66.6% 12.5pp

Financial Highlights (Millions of Euros)

Consolidated Revenues 373.4 381.4 2.2%

Consolidated EBITDA 159.4 173.5 8.8%

Consolidated EBITDA Margin 42.7% 45.5% 2.8pp

Consolidated EBITDA AL 137.6 146.2 6.2%

Consolidated EBITDA AL Margin 36.8% 38.3% 1.5pp

Consolidated EBITDA AL - Consolidated CAPEX Excluding Leasings & Other
6.2 49.1 698.3%
Contractual Rights

Telco Revenues 365.8 369.2 0.9%

Telco EBITDA 149.6 163.7 9.4%

Telco EBITDA Margin 40.9% 44.3% 3.4pp

Telco EBITDA AL 130.7 138.9 6.3%

Telco EBITDA Margin AL 35.7% 37.6% 1.9pp

Telco EBITDA AL - Telco CAPEX Excluding Leasings & Other Contractual Rights 5.2 46.3 796.5%

(1) Fixed residential ARPU reestated from 1Q19 to include Revenues of SIM cards integrated in residential bills




• We delivered another quarter of healthy RGU growth across all businesses and with particular strength in mobile.
Total RGUs increased by 89.4 thousand net additions of which 77.9 came from mobile (85.6% in mobile post-paid
contracts).


• Fixed Broadband services increased by 6.3 thousand and Fixed PayTV by 7.5 thousand net additions respectively,
reflecting the regard with which Portuguese consumers view our next generation fixed connectivity solutions and the high
value proposition of our NOS TV solutions.


• Convergence remains a key preference of consumers with an additional 15.2 thousand customers taking their
residential services in integrated bundles representing 68% of the fixed customer base by the end of the quarter.




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• Cinema operations kept up their positive trajectory over the previous year, with ticket sales up by 52% in 1Q23 to
1,502 thousand, again recovering well only down by 19% versus 1Q19.


Operating momentum driving solid financial results


• Consolidated revenues grew 2.2% yoy to 381.4 million euros, with EBITDA growth of 8.8% to 173.5 million and
EBITDA AL of 6.2% to 146.2 million euros.


• Telco Revenues grew by 0.9% to 369.2 million euros impacted for the high volume of resale revenues booked in
1Q22. Adjusting for low margin resale revenues, Telco Revenues would have grown by 5.4%. Audiovisual and Cinema
Revenues grew by 22.6% to 20.4 million euros.


• Telco EBITDA increased 9.4% yoy to 163.7 million euros. Telco EBITDA AL increased 6.3% yoy to 138.9 million
euros, Audiovisual and Cinema EBITDA AL increased 5.8% to 7.2 million euros. General inflationary pressures continued to
affect the cost base albeit ongoing operating efficiencies helped to offset the impact.


• Net Income attributable to NOS shareholders amounted to 34.9 million euros in 1Q23 representing a decline of
15.1% yoy.


• Total CAPEX excluding leasing contracts and other contractual rights was 97.0 million euros in 1Q23, a decline of
26.2% yoy as was expected due to the fact that 5G deployment is decelerating with more than 88% population coverage
at the end of 1Q23.


• Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares Acquisition in 1Q23 amounted to
28.4million euros reflecting the yoy improvement in EBITDA AL and the anticipated decline in CAPEX.




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Operating and Financial Review

The Consolidated Financial Statements for 1Q23have been subject to a limited review.

Table 2.
Profit and Loss Statement
1Q22 1Q23 1Q23 / 1Q22
(Millions of Euros)



Operating Revenues 373.4 381.4 2.2%

Telco 365.8 369.2 0.9%

Consumer Revenues 247.8 265.1 7.0%

Business Revenues 97.1 79.6 (18.0%)

Wholesale and Others 21.0 24.5 16.6%
(1)
Audiovisuals & Cinema 16.6 20.4 22.6%

Others and Eliminations (9.1) (8.2) (10.0%)

Operating Costs Excluding D&A (213.9) (207.9) (2.8%)

Telco (216.1) (205.5) (4.9%)

Audiovisuals & Cinema (1) (6.8) (10.5) 53.8%

Others and Eliminations 9.1 8.2 (10.0%)

EBITDA (2) 159.4 173.5 8.8%

EBITDA Margin 42.7% 45.5% 2.8pp

Telco 149.6 163.7 9.4%

EBITDA Margin 40.9% 44.3% 3.4pp

Cinema Exhibition and Audiovisuals 9.8 9.9 0.7%

EBITDA Margin 58.9% 48.4% (10.5pp)

Depreciation and Amortization (110.4) (120.4) 9.1%

(Other Expenses) / Income 2.7 (0.5) 118.2%

Operating Profit (EBIT) (3) 51.8 52.6 1.7%

Share of profits (losses) of associates and joint ventures 5.3 2.5 (52.3%)

(Financial Expenses) / Income (9.1) (13.0) 43.4%

Leases Financial Expenses (6.2) (7.4) 19.7%

Funding & Other Financial Expenses (2.8) (5.5) 95.1%

Income Before Income Taxes 48.0 42.2 (12.1%)

Income Taxes (6.9) (7.1) (2.9%)

Net Income Before Associates & Non-Controlling Interests 35.8 32.5 (9.1%)

Net income 41.1 35.0 (14.7%)

Net income attributable to Non-controlling interests 0.0 (0.1) (533.4%)

Net Income attributable to NOS shareholders 41.1 34.9 (15.1%)

Net Income attributable to NOS shareholders excluding gain from tower sale 41.1 34.9 (15.1%)
(1) Includes cinema operations in Mozambique.
(2) EBITDA = Operating Profit + Depreciation and Amortization + Integration Costs + Net Losses/Gains on Disposal of Assets + Other Non-Recurrent Losses/Gains
(3) EBIT = Income Before Financials and Income Taxes.




Leasings (21.9) (27.4) 25.3%

Telco (18.9) (24.7) 30.9%

Cinema Exhibition and Audiovisuals (3.0) (2.6) (11.0%)

Operating costs Excluding D&A AL (235.8) (235.2) (0.2%)

Telco (235.0) (230.2) (2.0%)

Audiovisuals & Cinema (1) (9.8) (13.2) 34.3%

Others and Eliminations 9.1 8.2 (10.0%)

EBITDA AL 137.6 146.2 6.2%

EBITDA AL margin 36.8% 38.3% 1.5pp

Telco 130.7 138.9 6.3%

EBITDA AL margin 35.7% 37.6% 1.9pp

Audiovisuals & Cinema 6.8 7.2 5.8%

EBITDA AL margin 41.1% 35.5% (5.6pp)




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Revenues
Consolidated revenues in 1Q23 grew by 2.2% YoY to 381.4 million euros, driven by the strength of operational
performance across all business segments. Telco revenues were 0.9% higher yoy, reaching 369.2 million euros, impacted
for the high volume of resale revenues booked in 1Q22. Adjusting for low margin resale revenues, Telco Revenues would
have grown by 5.4% and consolidated revenues by 6.6%. This very positive growth was driven primarily by strong growth
of 7.0% in the B2C segment driven by increased RGUs and improved customer value mix. B2B revenues, adjusted for the
impact of the low margin B2B resale revenues decreased by 2.7%. Wholesale and other revenues also continued to grow
strongly, driven by the ongoing recovery in roaming revenues and a rise in low margin mass calling services.


Audiovisual distribution and cinema exhibition revenues in 1Q23 grew by 22.6% yoy to 20.4 million euros, reflecting the
ongoing recovery in cinema sales, in particular impacted by the very strong attendance driven by "Avatar: The Way of
Water" which became the highest GBO movie ever in Portugal. This growth was also supported by the successful
screening of other blockbuster movies such as, "Puss in Boots: Last Wish" and "Creed III" showing that cinema going is
very much alive as long as there are popular movies on show in theatres.




Table 3.

Operating Indicators ('000) 1Q22 1Q23 1Q23 / 1Q22


Cinema (1)

Revenue per Ticket (Euros) 5.5 6.1 10.0%

Tickets Sold - NOS 987.6 1,501.7 52.1%

Tickets Sold - Total Portuguese Market (2) 1,564.0 2,316.3 48.1%

Screens (units) 208 214 2.9%
(1) Portuguese Operations
(2) Source: ICA - Portuguese Institute For Cinema and Audiovisuals




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OPEX, EBITDA, EBITDA AL and Net Results

As from 1Q23 we will focus our review of operational profitability on EBITDA AL, equivalent to pre IFRS16 EBITDA. EBITDA
will continue to be included, for reference and continuity in the coming quarters, in our reported financial tables.


Consolidated EBITDA maintained a very positive trend in 1Q23 increasing 8.8% to 173.5 million euros. Consolidated
EBITDA AL increased by 6.2% to 146.2 million euros. Telco EBITDA AL posted a strong yoy increase of 6.3% to 138.9
million euros, while Audiovisual and Cinema EBITDA AL increased by 5.8% to 7.2 million euros.


Consolidated OPEX after leases remained flat yoy at 235.2 million euros. We continue our efforts to contain costs to
offset global inflationary pressures and we remain focused on maintaining a positive margin trajectory, as we explore
ways to optimize our cost base. This quarter the cost items more negatively affected by inflation were wages and salaries
and external services, particularly the services with a high labour cost component. Commercial and service costs were
also impacted by inflation. Also leasing costs increased due essentially to the additional tower sale executed in 2022 and
to the inflationary environment, in the case of the tower leasing inflation adjustments are capped at 2%. On the positive
side, we recorded a very significant decline in COGS due to the lower sales of low margin software and IT resale revenues
in comparison with 1Q22. Also we maintained an efficient management of energy costs which started to revert and
contribute positively to EBITDA AL evolution.


Consolidated Net Results for 1Q23 amounted to 34.9 million euros representing a decline of 15.1% in comparison with
1Q22 explained mostly by an increase in D&A to 120.4 million euros, reflecting the high capex levels of 2021 and 2022.
Also net financial costs increased to 13.0 million euros, impacted primarily by the increased interest rate environment.




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CAPEX

Total CAPEX, excluding leasing contracts and other contractual rights, was significantly lower at 97.0 million euros, a
reduction of 26.2% yoy, confirming the strong deceleration of 5G deployment which had already reached population
coverage of 88% by the end of 1Q23. As a result, investment in Telco Technical CAPEX amounted to 53.4 million euros, of
which 21.8 related to network expansion, substitution and integration projects, down 56.6% yoy. We remain committed
to maintaining our network leadership position and providing customers with the best possible connectivity solutions
however this strategic ambition will be achievable with a more normalized level of investment going forward. Customer
related CAPEX was 39.2 million euros in the period, 8.2% yoy, reflecting the inflation in unit costs of CPEs, and also
increase in the labour component of sales commissions and installation. Audiovisuals and Cinema CAPEX in 1Q23 reached
4.4 million euros.




Table 4.
(1) 1Q22 1Q23 1Q23 / 1Q22
CAPEX (Millions of Euros)



Total CAPEX Excluding Leasing Contracts, Spectrum license & Other
131.4 97.0 (26.2%)
Contractual Rights

Telco 125.6 92.6 (26.2%)

% of Telco Revenues 34.3% 25.1% (9.2pp)

o.w. Technical CAPEX 89.4 53.4 (40.2%)

% of Telco Revenues 24.4% 14.5% (10.0pp)

Baseline Telco 39.0 31.6 (19.0%)

Network Expansion / Substitution and Integration Projects and Others 50.4 21.8 (56.6%)

o.w. Customer Related CAPEX 36.2 39.2 8.2%

% of Telco Revenues 9.9% 10.6% 0.7pp

Audiovisuals and Cinema Exhibition 5.8 4.4 (24.9%)

Leasing Contracts & Other Contractual Rights 11.8 29.1 145.9%

Spectrum licenses 0.0 0.0 n.a.

Total Group CAPEX 143.3 126.1 (12.0%)
(1) CAPEX = Increase in Tangible and Intangible Fixed Assets, Contract Costs and Rights of Use




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Cash Flow
Table 5.

Cash Flow (Millions of Euros) 1Q22 1Q23 1Q23 / 1Q22




EBITDA AL 137.6 146.2 6.2%

Total CAPEX Excluding Leasings, Spectrum License & Other Contractual
(131.4) (97.0) (26.2%)
Rights

EBITDA AL - Total CAPEX Excluding Leasings, Spectrum License & Other
6.2 49.1 698.3%
Contractual Rights

% of Revenues 1.6% 12.9% 11.2pp
Non-Cash Items Included in EBITDA AL - CAPEX and Change in Working
1.9 (5.2) (372.5%)
Capital
Operating Cash Flow 8.1 44.0 445.6%

Interest Paid (3.2) (4.7) 47.1%

Income Taxes Paid (0.2) 0.0 (120.5%)

Disposals 0.5 0.3 (51.6%)
(2)
Other Cash Movements (1.0) (11.2) (972.2%)

Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares
4.1 28.4 590.6%
Acquisition

Financial Investments 0.2 0.1 (63.1%)

Acquisition of Own Shares (2.9) (4.4) 50.9%

Dividends 0.0 0.0 n.a.

Free Cash Flow 1.4 24.0 1659.9%

Debt Variation Through Financial Leasing, Accruals & Deferrals & Others (0.2) (1.0) 391.8%

Change in Net Financial Debt (1.2) (23.0) 1883.8%
(1) Includes Long Term Contracts.
(2) Includes Cash Restructuring Payments and Other Cash Movements.




In 1Q23, EBITDA AL minus total CAPEX excluding leases and other contractual rights amounted to 49.1 million euros, a
significant increase compared to 6.2 million euros in 1Q22, reflecting the positive trend in EBITDA AL and reduction in
investment following peak CAPEX levels recorded in 2022.


Total FCF for the quarter was 28.4 million euros, reflecting very solid operating performance. This quarter was impacted
negatively by “Other Cash Movements” of 11.2 million euros, representing mostly the tower sale VAT payment of 10.3
million euros that was received from the final tower transaction in 4Q22. Excluding this non-recurrent VAT payment from
the tower transaction, FCF would have amounted to 38.7 million euros.




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Consolidated Balance Sheet
Table 6.

Balance Sheet (Millions of Euros) 1Q22 1Q23 1Q23 / 1Q22




Non-current Assets 2,795.8 2,930.1 4.8%

Current Assets 536.8 558.5 4.0%

Total Assets 3,332.7 3,488.6 4.7%

Total Shareholders' Equity 1,007.3 1,083.3 7.5%

Non-current Liabilities 1,537.7 1,382.7 (10.1%)

Current Liabilities 787.7 1,022.6 29.8%

Total Liabilities 2,325.4 2,405.3 3.4%

Total Liabilities and Shareholders' Equity 3,332.7 3,488.6 4.7%




Capital Structure and Funding

Table 7.

Net Financial Debt (Millions of Euros) 1Q22 1Q23 1Q23 / 1Q22




Short Term 99.1 342.9 246.2%

Medium and Long Term 947.0 649.4 (31.4%)

Total Debt 1,046.0 992.3 (5.1%)

Cash and Short Term Investments 15.5 23.1 49.2%

Net Financial Debt (1) 1,030.5 969.2 (6.0%)

Net Financial Debt / EBITDA after lease payments (last 4 quarters) (2) 1.96x 1.74x (0.11pp)

Leasings and Long Term Contracts 528.8 638.9 20.8%

Net Debt 1,559.3 1,608.1 3.1%

Net Debt / EBITDA 2.49x 2.42x (0.03pp)

Net Financial Gearing (3) 60.8% 59.8% -1.7%
(1) Net Financial Debt = Borrowings – Leasings - Cash
(2) EBITDA After Lease Payments = EBITDA - Lease Cash Payments (Capital & Interest)
(3) Net Financial Gearing = Net Debt / (Net Debt + Total Shareholders' Equity).




As of the end of 1Q23, NOS had a total net debt, including leasings and long-term contracts (according to IFRS16) of
1,608.1 million euros. Net financial debt stood at 969.2 million euros with a cash and short-term investment position on
the balance sheet of 23.1 million euros. NOS has a strong funding position with unissued commercial paper programmes
of 387.5 million euros. Net financial debt / EBITDA AL stood at 1.74x in 1Q23, which is comfortably below NOS’ target
leverage ratio of around 2x net financial debt / EBITDA AL.


The all-in average cost of debt for 1Q23 was 2.3%, an increase versus last quarter reflecting the increasing interest rate
context. As at 31 March 2023, the proportion of NOS’ issued debt paying interest at a fixed rate was approximately 63%.


At the end of 1Q23, the average maturity of NOS debt was 2.7 years.




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General Meeting and Shareholder Remuneration

On 5 April 2023, NOS’ held its Annual General Meeting. All points on the agenda were approved and as a result, NOS’
shareholders approved an ordinary dividend payment of 27.8c per share, in line with last year and an extraordinary
dividend of 15.2c per share, linked to the capital gain and FCF generated by the tower sale transaction closed in 2022.
Payment of the total dividend was made on 21 April 2023.


Upon payment of this dividend, NOS maintains a solid capital structure, remaining below its target net debt ratio of 2x
NFD / EBITDA AL. NOS remains robustly positioned to meet future investments and committed to continuing to
distribute an attractive level of dividends whilst maintaining a strategic focus on preserving a strong capital structure to
support continued delivery of sustainable value creation for shareholders.




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CONDENSED CONSOLIDATED STATEMENT OF THE FINANCIAL
POSITION
AT 31 MARCH 2022, 31 DECEMBER 2022 AND 31 MARCH 2023
(Amounts stated in thousands of euros)




NOTES 31-03-2022 31-12-2022 31-03-2023

ASSETS
NON - CURRENT ASSETS:
Tangible assets 7 1,077,803 1,107,052 1,105,945
Investment property 617 514 511
Intangible assets 8 1,204,881 1,209,558 1,205,040
Contract costs 9 161,375 160,594 161,105
Rights of use 10 232,903 297,723 308,447
Investments in jointly controlled companies and associated companies 11 27,668 38,961 41,311
Accounts receivable - other 12 5,583 4,758 4,574
Tax receivable 13 61 369 262
Other financial assets non-current 14 2,143 5,248 5,286
Deferred income tax assets 15 82,349 89,554 87,459
Derivative financial instruments 20 460 11,249 10,111
TOTAL NON - CURRENT ASSETS 2,795,843 2,925,580 2,930,051
CURRENT ASSETS:
Inventories 16 51,057 67,223 70,570
Accounts receivable - trade 17 330,915 319,441 318,200
Contract assets 18 60,916 60,095 61,045
Accounts receivable - other 12 18,850 16,632 18,181
Tax receivable 13 5,236 6,906 7,163
Prepaid expenses 19 54,041 52,232 60,237
Derivative financial instruments 20 322 - -
Cash and cash equivalents 21 15,497 15,215 23,121
TOTAL CURRENT ASSETS 536,834 537,744 558,517
TOTAL ASSETS 3,332,677 3,463,324 3,488,568




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CONDENSED CONSOLIDATED STATEMENT OF THE FINANCIAL
POSITION
AT 31 MARCH 2022, 31 DECEMBER 2022 AND 31 MARCH 2023
(Amounts stated in thousands of euros)

NOTES 31-03-2022 31-12-2022 31-03-2023

SHAREHOLDER'S EQUITY
Share capital 22.1 5,152 855,168 855,168
Capital issued premium 22.2 854,219 4,202 4,202
Own shares 22.3 (12,278) (15,968) (14,377)
Legal reserve 22.4 1,030 1,030 1,030
Other reserves and accumulated earnings 22.4 111,686 (22,914) 195,943
Net Income 41,108 224,574 34,915

EQUITY BEFORE NON - CONTROLLING INTERESTS 1,000,917 1,046,092 1,076,881

Non-controlling interests 23 6,344 6,251 6,374
TOTAL EQUITY 1,007,261 1,052,343 1,083,255
LIABILITIES
NON - CURRENT LIABILITIES:
Borrowings 24 1,409,383 1,210,181 1,207,297
Provisions 25 80,774 81,267 80,875
Accounts payable - other 29 38,570 42,128 41,691
Deferred income 27 3,802 2,824 2,753
Deferred income tax liabilities 3.2 & 15 48,327 50,125 50,098
TOTAL NON - CURRENT LIABILITIES 1,580,856 1,386,525 1,382,714
CURRENT LIABILITIES:
Borrowings 24 165,463 427,453 423,906
Accounts payable - trade 28 277,921 253,355 268,893
Accounts payable - other 29 30,229 53,789 33,894
Tax payable 3.2 & 13 30,832 38,842 41,612
Accrued expenses 26 204,321 212,430 212,667
Deferred income 27 35,790 38,190 40,915
Derivative financial instruments 20 4 397 712
TOTAL CURRENT LIABILITIES 744,560 1,024,456 1,022,599
TOTAL LIABILITIES 2,325,416 2,410,981 2,405,313
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY 3,332,677 3,463,324 3,488,568



As a standard practice, only the annual accounts are audited, therefore the quarterly amounts were not audited
autonomously.
The Notes to the Financial Statements form an integral part of the consolidated statement of financial position as at 31
March 2023.

The Chief Accountant The Board of Directors




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CONDENSED CONSOLIDATED STATEMENT OF INCOME BY
NATURE
FOR THE QUARTERS ENDED ON 31 MARCH 2022 E 2023
(Amounts stated in thousands of euros)

NOTES 3M 22 3M 23
REVENUES:
Services rendered 327,970 349,336
Sales 37,925 25,410
Other operating revenues 7,472 6,658
30 373,367 381,404
COSTS, LOSSES AND GAINS:
Wages and salaries 31 20,292 21,967
Direct costs 32 80,521 81,599
Costs of products sold 33 35,073 21,780
Marketing and advertising 5,274 9,180
Support services 34 20,630 24,033
Supplies and external services 34 38,173 35,784
Other operating losses / (gains) 334 289
Taxes 8,788 9,016
Provisions and adjustments 35 4,841 4,212
Depreciation, amortization and impairment losses 7,8,9,10 & 37 110,405 120,405
Reestructuring costs 38 1,006 359
Losses / (gains) on sale of assets, net 7&8 (15) (80)
Other losses / (gains) non recurrent net 39 (3,718) 218
321,604 328,762
INCOME BEFORE LOSSES / (GAINS) PARTICIPATED
51,763 52,642
COMPANIES, FINANCIAL RESULTS AND TAXES
Net losses / (gains) of affiliated companies 12 & 36 (5,307) (2,530)
Financial costs 40 8,138 11,880
Net foreign exchange losses / (gains) 92 121
Net losses / (gains) on financial assets 34 4
Net other financial expenses / (income) 40 786 973
3,743 10,448
INCOME BEFORE TAXES 48,020 42,194
Income taxes 15 6,943 7,146
NET CONSOLIDATED INCOME 41,077 35,048
ATTRIBUTABLE TO:
NOS Group Shareholders 41,108 34,915
Non-controlling interests 23 (31) 133
EARNINGS PER SHARES
Basic – euros 41 0.08 0.07
Diluted – euros 41 0.08 0.07



As a standard practice, only the annual accounts are audited, therefore the quarterly amounts were not audited
autonomously.
The Notes to the Financial Statements form an integral part of the consolidated statement of income by nature for the
quarter ended on 31 March 2023.
The Chief Accountant The Board of Directors




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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE QUARTERS ENDED ON 31 MARCH 2022 AND 2023
(Amounts stated in thousands of euros)


NOTES 3M 22 3M 23

NET CONSOLIDATED INCOME 41,077 35,048
OTHER INCOME
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO THE
INCOME STATEMENT:
Accounting for equity method 11 4,270 (180)
Fair value of interest rate swap 20 10 (979)
Deferred income tax - interest rate swap 20 (2) 220
Fair value of equity swaps 20 281 -
Deferred income tax - equity swap 20 (63) -
Fair value of exchange rate forward 20 82 (512)
Deferred income tax - exchange rate forward 20 (24) 149
Currency translation differences and others (14) 15
INCOME RECOGNISED DIRECTLY IN EQUITY 4,540 (1,287)
TOTAL COMPREHENSIVE INCOME 45,617 33,761
ATTRIBUTABLE TO:
NOS Group Shareholders 45,648 33,628
Non-controlling interests (31) 133
45,617 33,761


As a standard practice, only the annual accounts are audited, therefore the quarterly amounts were not audited
autonomously.
The Notes to the Financial Statements form an integral part of the consolidated statement of comprehensive income for
the quarter ended on 31 March 2023.

The Chief Accountant The Board of Directors




18
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
FOR THE QUARTERS ENDED ON 31 MARCH 2022 AND 2023
(Amounts stated in thousands of euros)
ATTRIBUTABLE TO NOS GROUP SHAREHOLDERS
NON -
CAPITAL
SHARE OWN LEGAL OTHER NET CONTROLLING TOTAL
NOTES ISSUED INTERESTS
CAPITAL SHARES RESERVE RESERVES INCOME
PREMIUM
BALANCE AS AT 1 JANUARY 2022 5,152 854,219 (12,353) 1,030 (35,586) 144,159 6,379 963,000
Result appropriation
Transfers to reserves - - - - 144,159 (144,159) - -
Aquisition of own shares 22.3 - - (3,358) - - - - (3,358)
Distribution of own shares:
Distribution of own shares - share incentive scheme 22.3 - - 3,147 - (3,147) - - -
Distribuition of own shares - other remunerations 22.3 - - 286 - (14) - - 272
Share Plan - costs incurred in the period and others - - - - 1,734 - (4) 1,730
Comprehensive Income - - - - 4,540 41,108 (31) 45,617
BALANCE AS AT 31 MARCH 2022 5,152 854,219 (12,278) 1,030 111,686 41,108 6,344 1,007,261
BALANCE AS AT 1 JANUARY 2023 855,168 4,202 (15,968) 1,030 (22,914) 224,574 6,251 1,052,343
Result appropriation
Transfers to reserves - - - - 224,574 (224,574) - -
Aquisition of own shares 22.3 - - (4,422) - - - - (4,422)
Distribution of own shares:
Distribution of own shares - share incentive scheme 22.3 - - 5,902 - (5,902) - - -
Distribuition of own shares - other remunerations 22.3 - - 111 - 6 - - 117
Share Plan - costs incurred in the period and others 45 - - - - 1,466 - (10) 1,456
Comprehensive Income - - - - (1,287) 34,915 133 33,761
BALANCE AS AT 31 MARCH 2023 855,168 4,202 (14,377) 1,030 195,943 34,915 6,374 1,083,255
-
As a standard practice, only the annual accounts are audited, therefore the quarterly amounts were not audited autonomously.
The Notes to the Financial Statements form an integral part of the consolidated statement of changes in shareholders equity for the quarter ended on 31 March
2023.
The Chief Accountant The Board of Directors




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CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE QUARTERS ENDED ON 31 MARCH 2022 AND 2023
(Amounts stated in thousands of euros)

NOTES 3M 22 3M 23
OPERATING ACTIVITIES
Collections from clients 427,725 438,699
Payments to suppliers (214,715) (200,329)
Payments to employees (23,022) (22,326)
Receipts / (Payments) relating to income taxes (230) 47
Other cash receipts / (payments) related with operating activities (8,683) (15,188)
CASH FLOW FROM OPERATING ACTIVITIES (1) 181,075 200,903
INVESTING ACTIVITIES
CASH RECEIPTS RESULTING FROM
Financial investments 275 275
Tangible assets 579 -
Intangible assets 1,142 1,354
1,996 1,629
PAYMENTS RESULTING FROM
Financial investments 4 & 14 (88) (206)
Tangible assets (93,424) (82,080)
Intangible assets and contract costs (58,325) (54,681)
(151,837) (136,967)
CASH FLOW FROM INVESTING ACTIVITIES (2) (149,841) (135,338)
FINANCING ACTIVITIES
CASH RECEIPTS RESULTING FROM
Borrowings 152,200 23,000
152,200 23,000
PAYMENTS RESULTING FROM
Borrowings (150,000) (33,500)
Lease rentals (principal) (16,901) (23,784)
Interest and related expenses (10,871) (13,675)
Aquisition of own shares 22.3 (2,930) (4,422)
(180,702) (75,381)
CASH FLOW FROM FINANCING ACTIVITIES (3) (28,502) (52,381)
Change in cash and cash equivalents (4)=(1)+(2)+(3) 2,732 13,184
Effect of exchange differences 3 (2)
Cash and cash equivalents at the beginning of the year 10,170 8,079
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 22 12,905 21,261
Cash and cash equivalents 21 15,497 23,121
Bank overdrafts 24 (2,592) (1,860)



As a standard practice, only the annual accounts are audited, therefore the quarterly amounts were not audited
autonomously.
The Notes to the Financial Statements form an integral part of the consolidated statement of cash flows for the quarter
ended on 31 March 2023.
The Chief Accountant The Board of Directors




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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
AS AT 31 MARCH 2023
(Amounts stated in thousands of euros, unless otherwise stated)

1. Introductory Note
NOS, SGPS, S.A. ("NOS", “NOS SGPS” or "Company"), formerly named ZON OPTIMUS, SGPS, S.A. (“ZON OPTIMUS”) and
until 27 August 2013, named ZON Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. (“ZON”), with
Company headquarters registered at Rua Actor António Silva, nº9, Campo Grande, was established by Portugal Telecom,
SGPS, S.A. ("Portugal Telecom") on 15 July 1999 for the purpose of implementing its multimedia business strategy.
During the 2007 financial year, Portugal Telecom proceeded with the spin-off of ZON through the attribution of its
participation in the company to their shareholders, which become fully independent from Portugal Telecom.
During the 2013 financial year, ZON and Optimus, SGPS, S.A. ("Optimus SGPS") have merged through the incorporation of
Optimus SGPS into ZON. Thereafter, the Company adopted the designation of ZON OPTIMUS, SGPS, S.A..
On 20 June 2014, because of the launch of the new brand “NOS” on 16 May 2014, the General Meeting of Shareholders
approved the change of the Company’s name to NOS, SGPS, S.A..
The businesses operated by NOS and its associated companies, form the "NOS Group" or "Group", which includes cable and
satellite television services, voice and Internet access services, video production and sale, advertising on Pay TV channels,
cinema exhibition and distribution, the production of channels for Pay TV, management of datacenters and consulting
services in IT, mainly in the Portuguese market.
NOS shares are listed on the Euronext Lisbon market. The shareholders’ structure of the Group as at 31 March 2023 is shown
in Note 22.
The business of NOS Comunicações, S.A. (“NOS SA”) and its subsidiaries, NOS Technology, NOS Açores, NOS Madeira,
NOS Wholesale, NOS Sistemas and BLU comprehends: a) cable and satellite television distribution; b) the operation of the
latest generation mobile communication network, GSM/UMTS/LTE/5G; c) the operation of electronic communications
services, including data and multimedia communication services in general; d) IP voice services ("VOIP" - Voice over IP); e)
Mobile Virtual Network Operator (“MVNO”), f) the provision of consultancy and similar services directly or indirectly related
to the above mentioned activities and services, and g) datacentre management and consulting services in IT. The business
of these companies is regulated by Law no. 5/2004 (Electronic Communications Law), which establishes the legal regime
governing electronic communications networks and services.
The main activity of NOS Audio – Sales and Distribution, S.A., previously designated NOS Lusomundo TV, S.A. and the result
of the merger of NOSPUB with NOS Lusomundo TV on December 2020, is the negotiation, acquisition and distribution of
content rights and other multimedia products to television and other platforms of distribution, currently producing films
and series channels through the compilation of the acquired contents, which are distributed, among other operators, by
NOS SA and its subsidiaries. This company also manages the advertising space on Pay TV channels and in the cinemas of
NOS Cinemas.
NOS Audiovisuais and NOS Cinemas, together with their associated companies, operate in the audiovisual sector, which
includes video production and sale, cinema exhibition and distribution, and the acquisition/negotiation of Pay TV and VOD
(video-on-demand) rights.
NOS Inovação main activities are conducting and stimulating scientific activities of R&D (it owns all the intellectual property
developed within the NOS Group, intending to guarantee the return of the initial investment through the commercialization
of patents and concessions regarding commercial operation, as a result of the creation of new products and services), the
demonstration, disclosure, technology and training transfers in the services and information management domains as well
as fixed and mobile solutions of the latest generation of TV, internet, voice and data solutions.
These notes to the Financial Statements follow the order in which the items are shown in the consolidated financial
statements.




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The consolidated financial statements for the quarter ended on 31 March 2023 were approved by the Board of Directors and
their issue authorised on 26 April 2023.
The Board of Directors believes that these financial statements give a true and fair view of the Group’s operations, financial
performance, and consolidated cash flows.



2. Accounting policies
The principal accounting policies adopted in the preparation of the financial statements are described below. These policies
were consistently applied to all the financial years presented, unless otherwise stated.



2.1. Principles of presentation
The consolidated financial statements were prepared in accordance with IAS 34 Interim Financial Reporting (“IAS 34”).
Therefore, these financial statements do not include all the information required by IFRS, so they must be read in
conjunction with the consolidated financial statements for the year ended on 31 December 2022.
The consolidated financial statements are presented in euros as this is the main currency of the Group's operations and all
amounts are presented in thousands of euros, except when referred to the financial statements of subsidiaries located
abroad were converted into euros in accordance with the accounting policies described in Note 2.3.21.
The consolidated financial statements were prepared on a going concern basis from the ledgers and accounting records of
the companies included in the consolidation (Annex A)), using the historical cost convention, adjusted when necessary for
the valuation of financial assets and liabilities (including derivatives) at their fair value (Note 2.3.24).
In preparing the consolidated financial statements in accordance with IFRS, the Board used estimates, assumptions, and
critical judgments with impact on the value of assets and liabilities and the recognition of income and costs in each reporting
period. Although these estimates were based on the best information available at the date of preparation of the
consolidated financial statements, current and future results may differ from these estimates. The areas involving a higher
element of judgment and estimates are described in Note 3.
The Board of Directors is convinced that there are no material uncertainties that might question this assumption. An
analysis was made that the Group has the necessary resources to continue its operations into the future, for a period of no
less than 12 months from the reporting date.
In the preparation and presentation of the consolidated financial statements, the NOS Group declares that it complies
explicitly and without reservation with IAS/IFRS reporting standards and related SIC/IFRIC interpretations as approved by
the European Union.

Changes in accounting policies and disclosures
The following standards, interpretations, amendments and revisions adopted (“endorsed”) by the European Union were
mandatory for the first time on the financial year beginning 1 January 2023:
• IFRS 17 – Insurance Contracts. IFRS 17 applies to all insurance contracts (i.e. life, non-life, direct insurance and
reinsurance) regardless of the type of entity that issues them, as well as some guarantees and some financial
instruments with discretionary participation features. Overall, IFRS 17 provides an accounting model for insurance
contracts that is more useful and more consistent for issuers. In contrast to the requirements of IFRS 4, which are
based on previously adopted local accounting policies, IFRS 17 provides a comprehensive model for insurance
contracts, covering all relevant accounting aspects.
• Amendments to IFRS 17 – Insurance contracts – Initial application of IFRS 17 and IFRS 9 – Comparative information.
This amendment to IFRS 17 relates to the presentation of comparative information for financial assets in initial
application of IFRS 17. The amendment adds a transition option that permits an entity to apply an 'overlay' in
classifying a financial asset in the comparative period(s) presented in initial application of IFRS 17. The overlay
permits all financial assets, including those held in relation to non-contractual activities within the scope of IFRS
17, to be classified, instrument by instrument, in the comparative period(s) in a manner aligned with how the entity
expects those assets to be classified on initial application of IFRS 9.




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• Amendments to IAS 1 – Disclosure of accounting policies. These amendments are intended to assist the entity in
disclosing 'material' accounting policies, previously referred to as 'significant' policies. However, due to the absence
of this concept in the IFRS standards, it was decided to replace it by the concept 'materiality', a concept already
known to users of financial statements. In assessing the materiality of accounting policies, the entity has to
consider not only the size of transactions but also other events or conditions and the nature of these.
• Amendments to IAS 8 - Definition of accounting estimates. The amendment clarifies the distinction between
change in accounting estimate, change in accounting policy and correction of errors. In addition, it clarifies how an
entity uses measurement techniques and inputs to develop accounting estimates.

• Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction. The
amendment clarifies that payments that settle a liability are tax deductible, however it is a matter of professional
judgement whether such deductions are attributable to the liability that is recognised in the financial statements
or the related asset. This judgment is important in determining whether there are temporary differences in the
initial recognition of the asset or liability. Thus, the initial recognition exception is not applicable to transactions
that gave rise to equal taxable and deductible temporary differences. It is only applicable if the recognition of a
leasing asset and a leasing liability gives rise to taxable and deductible temporary differences that are not equal.
These standards and amendments had no material impacts on the consolidated financial statements of the Group.
The following standards, interpretations, amendments and revisions, with mandatory application in future financial years,
have not been endorsed by the European Union, until the date of approval of these financial statements:

• Amendments to IAS 1 – Disclosure of accounting policies. Classification of current and non-current liabilities. This
amendment intends to clarify the classification of liabilities as current or non-current balances depending on the
rights that an entity has to defer its payment, at the end of each reporting period. The classification of liabilities is
not affected by the entity's expectations (the assessment should determine whether a right exists, but should not
consider whether the entity will or will not exercise that right), or by events that occur after the reporting date,
such as non-compliance with a covenant. However, if the right to defer settlement for at least twelve months is
subject to the fulfilment of certain conditions after the reporting date, those criteria do not affect the right to defer
settlement for the purpose of classifying a liability as current or non-current. This amendment also includes a new
definition of "settlement" of a liability and is applicable retrospectively.
• Amendments to IFRS 16 – Leasings - Responsibility of a lease in a sale and leaseback transaction. This amendment
specifies the requirements regarding the subsequent measurement of lease liabilities, related to sale and leaseback
transactions that qualify as "sale" in accordance with the principles of IFRS 15, focusing on variable lease payments
that do not depend on an index or rate. In subsequently measuring lease liabilities, seller-lessees shall determine
"lease payments" and "revised lease payments" in a manner that does not recognise any gain or loss related to the
retained right-of-use. Applying these requirements does not prevent a seller-lessee from recognising, in the
income statement, any gain or loss relating to the partial or total "sale" as required by paragraph 46(a) of IFRS 16.
This amendment is retrospective.
The Group did not apply any of these standards in advance in the financial statements in the quarter ended on 31 March
2023. No significant impacts on the financial statements resulting from their adoption are estimated.




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2.2. Bases of Consolidation
Controlled companies
Controlled companies were consolidated by the full consolidation method. Control is deemed to exist when the Group is
exposed or has rights, because of their involvement, to a variable return of the entity's activities, and has capacity to affect
this return through the power over the entity. Namely, when the Company directly or indirectly holds a majority of the
voting rights at a General Meeting of Shareholders or has the power to determine the financial and operating policies. In
situations where the Company has, in substance, control of other entities created for a specific purpose, although it does
not directly hold equity in them, such entities are consolidated by the full consolidation method. The entities in these
situations are listed in Annex A).

The interest of third parties in the equity and net profit of such companies’ income presented separately in the consolidated
statement of financial position and in the consolidated statement, respectively, under the item “Non-controlling Interests”
(Note 23).
The identifiable acquired assets and the liabilities and contingent liabilities assumed in a business combination are measured
initially at fair value at the acquisition date, irrespective of the existence of non-controlled interests. The excess of
acquisition cost over the fair value of the Group’s share of identifiable acquired assets and liabilities is stated in Goodwill.
When the acquisition cost is less than the fair value of the identified net assets, the difference is recorded as a gain in the
income statement in the period in which the acquisition occurs.
The non-controlling interests are initially recognized as their proportion of the fair value of the identifiable assets and
liabilities.

On the acquisition of additional equity shares in companies already controlled by the Group, the difference between the
share of capital acquired and the corresponding acquisition value is recognized directly in equity.
When an increase in position in the capital of an associated company results in the acquisition of control, with the latter
being included in the consolidated financial statements by the full consolidation method, the share of the fair values
assigned to the assets and liabilities, corresponding to the percentages previously held, is stated in the income statement.

The directly attributable transaction costs are recognized immediately in profit or loss.
When the Group loses control over a controlled entity, the assets and liabilities of that entity, and any non-controlling
interests and other components recognised in equity, are derecognised. Any resulting gain or loss is recognised in the
income statement. Any interest retained in the entity is measured at fair value when control is lost.
Intercompany transactions, balances, unrealized gains on transactions and dividends distributed between Group companies
are eliminated. Unrealized losses are also eliminated unless the transaction shows evidence of impairment of the transferred
asset.
When necessary, adjustments are made to the financial statements of controlled companies in order to align their
accounting policies with those of the Group.
Jointly controlled companies

The classification of investments as jointly controlled companies is determined based on the existence of shareholder
agreements, which show and regulate the joint control. Financial investments of jointly controlled companies (Annex C))
are stated by the equity method. Under this method, financial investments are adjusted periodically by an amount
corresponding to the share in the net profits of jointly controlled companies, as a contra entry in “Losses / (gains) of
affiliated companies” in the income statement before financial results and taxes. Direct changes in the post-acquisition
equity of jointly controlled companies are recognized as the value of the shareholding as a contra entry in reserves, in equity.

Additionally, financial investments may also be adjusted for recognition of impairment losses.
Any excess of acquisition cost over the fair value of identifiable net assets and liabilities (goodwill) is recorded as part of the
financial investment of jointly controlled companies and subject to impairment testing when there are indicators of loss of
value. When the acquisition cost is less than the fair value of the identified net assets, the difference is recorded as a gain
in the income statement in the period in which the acquisition occurs.
Losses in jointly controlled companies, which exceed the investment made in them, are not recognized, except when the
Group has entered into undertakings with that entity.




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Dividends received from these companies are recorded as a reduction in the value of the financial investments.
Associated companies
An associated company is a company in which the Group exercises significant influence through participation in decisions
about its financial and operating policies, but in which does not have control or joint control.

Any excess of the acquisition cost of a financial investment over the fair value of the identifiable net assets is recorded as
goodwill and is added to the value of the financial investment and its recovery is reviewed annually or whenever there are
indications of possible loss of value. When the acquisition cost is less than the fair value of the identified net assets, the
difference is recorded as a gain in the statement of comprehensive income in the period in which the acquisition occurs.
Financial investments in associated companies (Annex B)) are stated by the equity method. Under this method, financial
investments are adjusted periodically by an amount corresponding to the share in the net profits of associated companies,
as a contra entry in “Losses / (gains) of affiliated companies” in the income statement. Direct changes in the post-acquisition
equity of associated companies are recognized as the value of the shareholding as a contra entry in reserves, in equity.
Additionally, financial investments may also be adjusted for recognition of impairment losses.
Losses in associated companies, which exceed the investment made in them, are not recognized, except when the Group
has entered undertakings with that associated company.

Dividends received from these companies are recorded as a reduction in the value of the financial investments.
Holdings in entities without significant influence
Investments made by the Group in entities where it does not have significant influence are initially recorded at cost and
subsequently measured at fair value through profit or loss.

These investments are presented under "Other financial assets non-current" in the statement of financial position and
changes in fair value are recorded against "Net losses / (gains) of affiliated companies" in the income statement.
Balances and transactions between group companies
Balances and transactions as well as unrealized gains between Group companies, and between them and the parent
company, are eliminated in the consolidation.

The part of unrealized gains arising from transactions with associated companies or jointly controlled companies
attributable to the Group is eliminated in the consolidation. Unrealized losses are similarly eliminated except when they
show evidence of impairment of the transferred asset.



2.3. Accounting Policies
2.3.1. Segment Reporting
As stipulated in IFRS 8, the Group presents operating segments based on internally produced management information
(Note 5).

Operating segments are reported consistently with the internal management information model provided to the chief
operating decision maker of the Group, who is responsible for allocating resources to the segment and for assessing its
performance, and for taking strategic decisions.



2.3.2. Classification of the statement of financial position and income statement
The Group presents assets and liabilities in the financial statements based in the current and non-current classification. An
asset is classified as current when:
• The asset is expected to be realized, sold or consumed in its normal operational cycle;

• If the asset is held, essentially, for negotiation purposes;

• The asset is expected to be realized 12 months after reported;




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• The asset is a cash or a cash equivalent, unless its trade or use is limited to settle a liability during, at least, 12
months after reporting.

A liability is classified as current when:
• The liability is expected to be settled in its normal operational cycle;

• The liability is held, essentially, for negotiation purposes;

• The liability is expected to be settled in a 12 month period after reported;
• There is no unconditional right to differ the liability settlement during, at least, 12 months after reported;

The remaining assets and liabilities of the Group are classified as non-current.
Realizable assets and liabilities due in less than one year from the date of the statement of financial position are classified
as current in assets and liabilities, respectively.
In accordance with IAS 1, "Integration costs", "Losses / (gains) on disposal of assets" and "Other non-recurring costs /
(gains)"reflect unusual costs and revenues, that should be disclosed separately from the usual cost and revenues lines, in
order to avoid distortion of the financial information from regular operations, and be consistent with the way the group's
financial performance is analyzed and monitored by management. These unusual costs and revenues may not be
comparable to similarly titled measures used by other companies. When determining whether an event or transaction is
unusual, management considers both quantitative and qualitative factors. Examples of unusual costs and revenues are:
business restructuring programs and respective compensation; regulatory affairs and lawsuits; extraordinary impairment
of assets due to the reduction of their recoverable amount, sale of non current assets, among others. If costs and revenues
meet these criteria, which are applied consistently from year to year, they are treated as unusual and presented in the
specific lines above.



2.3.3. Tangible Assets
Tangible assets are stated at acquisition cost, less accumulated depreciation and impairment losses, when applicable.
Acquisition cost includes, in addition to the purchase price of the asset: (i) costs directly attributable to the purchase; and
(ii) the estimated costs of decommissioning and removal of the assets and restoration of the site, which in Group applies
to the cinema operation business, telecommunication towers and offices (Note 7).
Estimated losses resulting from the replacement of equipment before the end of its useful life due to technological
obsolescence are recognized by a deduction, from the corresponding asset as a contra entry in profit and loss. The costs of
current maintenance and repairs are recognized as a cost when they are incurred. Significant costs incurred on renovations
or improvements to the asset are capitalized and depreciated over the corresponding estimated payback period when it is
probable that there will be future economic benefits associated with the asset and when these can be measured reliably.
The gains and losses from the disposal of tangible assets, determined by the difference between the sale value and the net
book value, are recognized in the item “Losses/ (gains) on disposal of assets”.
Depreciation

Tangible assets are depreciated from the time they are completed or ready to be used. These assets, less their residual
value, are depreciated by the straight-line method, in twelfths, from the month in which they become available for use,
according to the useful life of the assets defined as their estimated utility.




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The depreciation rates used correspond to the following estimated useful lives:

2022 2023
(YEARS) (YEARS)
Buildings and other constructions 2 - 50 2 - 50
Technical equipment:
Network Installations and equipment 7 - 40 7 - 40
Terminal equipment 2-8 1-5
Other technical equipment 1 - 16 1 - 16
Transportation equipment 3-4 3-4
Administrative equipment 2 - 10 2 - 10
Other tangible assets 4-8 4-8




2.3.4. Non-current assets held for sale and discontinued operations
The non-current assets (or discontinued operations) are classified as held for sale if the respective value is realizable through
a sale transaction instead of its continued use.

This situation is considered to happen only when: i) the sale is very likely to happen and the asset is immediately available
to be sold in its current conditions, ii) the Company made the commitment to sell, and iii) the sale is expected to take place
in a period of 12 months. In this case, the non-current assets are measured by the lower amount between accounting value
or the respective fair value deducted from the costs of the sale.
The non-current assets held for sale and discontinued operations are measured at the lower of two: i) the accounting value
and, ii) the fair value deducted from the costs of the sale. The costs of the sale are the incremental costs directly assigned
to the disposal of the asset (or group to be disposed), excluding financial costs and income tax expenses.
From the moment that tangible assets are considered to be “held for sale” the inherent depreciation of those assets ceases,
and the assets are determined as non-current asset held for sale.
A discontinued operation unit is a component of and entity that was disposed or is classified as held for sale and:

• Represents an important line of business or geographical area separated from the operational units;
• It is an integrant part of a single coordinated plan to dispose an important line of business or geographical area
separated from the operational units or;

• It is a subsidiary acquired exclusively for resale.
Discontinued operations are excluded from the continued operations results and are presented in separate as an amount
of net income after taxes from discontinued operations on the financial statement of income by nature.



2.3.5. Intangible Assets
Intangible assets are stated at acquisition cost, less accumulated amortization and impairment losses, when applicable.
Recognized only when they generate future economic benefits for the Group and when they can be measured reliably.
Intangible assets consist mainly of goodwill, telecom and software licenses, content utilization rights and other contractual
rights.
Group companies periodically carry out an impairment assessment of intangible assets in-progress. This impairment
assessment is also carried out whenever events or changes in circumstances indicate that the amount at which the asset is
recorded may not be recoverable. When such indications exist, the Group calculates the recoverable value of the asset in
order to determine the existence and extent of the impairment loss.

Goodwill
Goodwill represents the excess of acquisition cost over the net fair value of the assets, liabilities, and contingent liabilities
of a subsidiary, jointly controlled company or associated company at the acquisition date, in accordance with IFRS 3.




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Goodwill is recorded as an asset and included in “Intangible assets” (Note 8) in the case of a controlled company or in the
case in which the excess of cost has been originated by a merger, and in “Financial investments in group companies” (Note
11) in the case of a jointly controlled company or an associated company.
Goodwill is not amortised and is subject to impairment tests at least once a year, on a specified date, and whenever there
are changes in the test’s underlying assumptions at the date of the statement of financial position which may result in a
possible loss of value. Any impairment loss is recorded immediately in the income statement in “Impairment losses” and is
not liable to subsequent reversal.
For the purposes of impairment tests, goodwill is attributed to the cash-generating units to which it is related (Note 8),
which may correspond to the business segments in which the Group operates, or a lower level.

Internally generated intangible assets
Internally generated intangible assets, including expenditure on research, are expensed when they are incurred. Research
and development costs are only recognized as assets when the technical capability to complete the intangible asset is
demonstrated and when it is available for use or sale.
Industrial property and other rights

Assets classified under this item relate to the rights and licenses acquired under contract by the Group to third parties and
used in realizing the Group's activities, and include:
• Telecom licenses;

• Software licenses;
• Content utilization rights;

• Other contractual rights.
The content exploration rights are recorded in the consolidated statement of financial position, as intangible assets, when
the following conditions are fulfilled: (i) there is control over the content, (ii) the Company has the right to choose the way
to explore the content, and (iii) it is available for exhibition.
The conclusion of contracts relating to sports contents, which are not immediately available, originates rights that are
initially classified as contractual commitments.
In the specific case of broadcasting rights of sports competitions, these are recognized as assets when the necessary
conditions to organize each sports competition are present, which occurs in the homologation date of the participating
teams in the competition that is being held in the sports season to be initiated, by the organizing entity, taking into
consideration that it is from that date that the conditions for the recognition of an asset are present, namely, the
unequivocal attainment of the exploration rights of the games of the stated season. In this situation, the stated rights are
recognized in the income statement in “Depreciation, amortization, and impairment losses”, by the linear method, by
twelfths, starting from the beginning of the month in which they are available for use.
Resulting from agreements concluded for the cession of the exclusive rights to exploit sports content, and as it is permitted
by IAS 1, since 2017, NOS presents the net assets and liabilities of the values ceded to other operators, considering that this
compensation best reflects the substance of the transactions.
When the recognized intangible assets involve payments in periods above 1 year, the intangible asset corresponds to the
present value of those payments.

Amortization
The useful lives of the intangible assets are classified as finite or indefinite.

Intangible assets with finite useful lives are amortised over their useful lives, with an impairment analysis carried out
whenever there are indications that the amount at which the intangible asset is mentioned in the financial statements may
not be recovered. The amortization period and the amortization method of an intangible asset with a finite useful life are
reviewed periodically. Any changes in the expected useful life or in the expected pattern of future consumption of the
economic benefits incorporated in the asset, are considered in the modification over the period or method of amortization
and, if verified, are treated as changes in accounting estimates. The amortization costs of intangible assets with finite lives
are recognized in the income statement.




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The assets with finite useful life are amortised by the straight-line method, in twelfths, from the beginning of the month in
which they become available for use.

The amortization rates used correspond to the following estimated useful lives:
2022 2023
(YEARS) (YEARS)
Telecom licences 20 - 33 20 - 33
Software licences 1-8 1-8
Period of the Period of the
Content utilization rights
contract contract
Other 1 to 20 1 to 20


The intangible assets with indefinite useful lives are not amortised, and impairment assessments are performed annually.
Accordingly, the useful life of an intangible asset that is not being amortised is periodically reviewed to determine whether
events and circumstances continue to support an indefinite useful life assessment for that asset. If not, the change in the
assessment of the useful life from indefinite to finite is accounted for as a change in an accounting estimate.
An intangible asset is unrecognized in its disposal moment, or when no future economic benefits from its use or disposal
are expected. The gain or loss related with an unrecognized intangible asset (determined as the difference between the net
income of its disposal, if there is any, and the carrying amount of that same asset) is recognised in the financial statement
of income by nature.



2.3.6. Contract Costs
This item corresponds to costs incurred in attracting customers and costs associated with fulfilling a contract that are
capitalized whenever they meet all of the following criteria:
• they are related to an existing contract or a specific future contract;

• generate or increase resources that will be used in the future;

• costs are expected to be recovered; and
• they are not already covered by the scope of another standard, such as inventories, tangible or intangible assets.

These costs are recognized for the period expected to fulfill the contract (2 to 4 years).
The costs of attracting customers are essentially:

• Commissions paid to third parties with the acquisition of new contracts / new customers;

• Commissions paid to third parties for upgrading the services provided;
• Commissions paid to third parties for renewal of loyalty of services and offers to customers; and

• Several commissions with revenue collection.
The costs associated with fulfilling the contracts are essentially:

• Costs incurred with the portability of mobile / fixed numbers of other operators;

• Variable costs, variables, incurred with the activation of services contracted by customers.




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2.3.7. Impairment of non-current assets, excluding goodwill
Group companies periodically carry out an impairment assessment of non-current assets. This impairment assessment is
also carried out whenever events or changes in circumstances indicate that the amount at which the asset is recorded may
not be recoverable. When such indications exist, the Group calculates the recoverable value of the asset to determine the
existence and extent of the impairment loss.
The recoverable value is estimated for each asset individually or, if that is not possible, assets are grouped at the lowest
levels for which there are identifiable cash flows to the cash-generating unit to which the asset belongs. Each of the Group’s
businesses is a cash-generating unit, except for the assets allocated to the cinema exhibition business, which are grouped
into regional cash-generating units.

The recoverable amount is calculated as the higher of the net sale price and the current use value. The net sale price is the
amount that would be obtained from the sale of the asset in a transaction between independent and knowledgeable
entities, less the costs directly attributable to the sale. The current use value is the current value of the estimated future
cash flows resulting from continued use of the asset or of the cash-generating unit. When the amount at which the asset is
recorded exceeds its recoverable value, it is recognised as an impairment loss.

The reversal of impairment losses recognised in previous years is recorded when there are indications that these losses no
longer exist or have decreased. The reversal of impairment losses is recognised in the statement of comprehensive income
in the year in which it occurs. However, an impairment loss can only be reversed up to the amount that would be recognised
(net of amortization or depreciation) if no impairment loss had been recorded in previous years.



2.3.8. Financial Assets
Financial assets are recognised in the statement of financial position of the Group on the trade or contract date, which is
the date on which the Group undertakes to purchase or sell the asset.

Initially, apart from commercial accounts receivable, financial assets are recognised at fair value plus directly attributable
transaction costs, except for assets at fair value through income in which transaction costs are immediately recognised in
income. Trade accounts receivable, at the initial time, are recognised at their transaction price, as defined in IFRS 15.

The financial assets are derecognised when:

• the Group’s contractual rights to receive their cash flows expire;

• the Group has substantially transferred all the risks and benefits associated with their ownership; or
• although it retains part but not substantially all of the risks and benefits associated with their ownership, the
Group has transferred control of the assets.
The financial assets and liabilities are offset and shown as a net value when, and only when, the Group has the right to offset
the recognised amounts and intends to settle for the net value.

The Group classifies its financial assets into the following categories: financial assets at fair value through profit or loss,
financial assets measured at amortised cost, financial assets at fair value through other comprehensive income. Its
classification depends on the entity's business model to manage the financial assets and the contractual characteristics in
terms of the cash flows of the financial asset.
Financial assets at fair value through profit and loss

This category includes financial derivatives and equity instruments that the Group has not classified as financial assets
through other comprehensive income at the time of initial recognition. This category also includes all financial instruments
whose contractual cash flows are not exclusively capital and interest.
Financial assets at fair value through results are presented in the financial statements at fair value, the net changes being
known in the income statement. This category of assets includes derivative instruments and investments in listed
companies for which the Company has not classified them as financial assets at fair value through other comprehensive
income. Dividends from investments in listed companies are recognised as income in the income statement when the
respective right of receipt is formalized.




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Gains and losses resulting from changes in the fair value of assets measured at fair value through profit or loss are
recognised in results in the year in which they occur under “Losses / (gains) on financial assets”, including the income from
interest and dividends.
Financial assets at fair value through other comprehensive income

Financial assets measured at fair value through other comprehensive income are those that are part of a business model
whose objective is achieved through the collection of contractual cash flows and the sale of financial assets, being that
these contractual cash flows are only capital and interest reimbursement on the capital in debt.

Financial assets measured at amortised cost
Financial assets measured at amortised cost are those that are included in a business model whose purpose is to hold
financial assets in order to receive the contractual cashflows, being that these contractual cash flows are only capital
reimbursement and interest payments on the capital in debt.
Financial assets measured at amortised cost are subsequently measured using the effective tax rate method and subject to
impairment. Income and costs are recognised in the income statement when the asset is derecognised, updated or an
impairment is recognised over it. Financial assets measured at the Company's amortised cost include accounts receivable
and loans granted to related parties.

Cash and cash equivalents
The amounts included in “Cash and cash equivalents” correspond to the amounts of cash, bank deposits, term deposits and
other investments with maturities of less than three months which may be immediately realizable and with a negligible risk
of change of value.

For the purposes of the statement of cash flows, “Cash and cash equivalents” also includes bank overdrafts included in the
statement of financial position under “Borrowings” (when applicable).



2.3.9. Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified according to their contractual substance irrespective of their legal
form. Equity instruments are contracts that show a residual interest in the Group’s assets after deducting the liabilities. The
equity instruments issued by Group companies are recorded at the amount received, net of the costs incurred in their issue.
Financial liabilities are recognised only when extinguished, i.e. when the obligation is settled, cancelled, or extinguished.

In accordance with IFRS 9, financial liabilities are classified as subsequently measured at amortised cost, except for:
• Financial liabilities at fair value through profit or loss. These liabilities, including derivatives that are liabilities,
should subsequently be measured at fair value;
• Financial liabilities that arise when a transfer of a financial asset does not meet the conditions for derecognition
or when it is applied the continued involvement approach;
• Financial guarantee contracts;
• The commitments to grant a loan at a lower interest rate than the market;

• The recognised contingent consideration by a buyer in a concentration of business activities to which IFRS 3
applies. Such contingent consideration shall be subsequently measured at fair value, with changes recognised in
profit or loss.

Financial liabilities of the Group include borrowings, accounts payable and derivative financial instruments.




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2.3.10.Impairment of financial assets
At the date of each financial position statement, the Group analyses and recognizes expected losses on its debt securities,
loans and accounts receivable. The expected loss results from the difference between all contractual cash flows that are
due to an entity in accordance with the contract and all the cash flows that the entity expects to receive, discounted at the
original effective interest rate.
The objective of this impairment policy is to recognize expected credit losses over the respective duration of financial
instruments that have undergone significant increases in credit risk since initial recognition, assessed on an individual or
collective basis, considering all reasonable and sustainable information, including prospects. If, at the reporting date, the
credit risk associated with a financial instrument has not increased significantly since the initial recognition, the Group
measures the provision for losses relating to that financial instrument by an amount equivalent to the expected credit losses
within a period of 12 months.
For receivables and assets resulting from contracts under IFRS 15, the Group adopts the simplified approach when
calculating expected credit losses. As a result, the Group does not monitor changes in credit risk, recognizing instead
impairment losses based on the expected credit loss on each reporting date. The Group established a provisions’ matrix
where it presents an impairment loss criterion based on the history of credit losses, adjusted by specific prospective factors
for the clients and the economic environment.



2.3.11. Derivative financial instruments
Initial and subsequent recognition
The Group uses derivative financial instruments, such as exchange rate forward contracts, interest rate swaps, to cover its
exchange rate risks, interest, respectively. Such derivative financial instruments are initially recorded at fair value on the
date the derivative is contracted and are subsequently measured at fair value. Derivatives are presented in assets when
their fair value is positive and in liabilities when their fair value is negative.

In terms of hedge accounting, hedges are classified as:
• Fair value hedge when the purpose is to hedge the exposure to fair value changes of a registered asset or liability
or an unregistered Groups’ commitment;
• Cash flow hedge when the purpose is to hedge the exposure to cash flow variability arising from a specific risk
associated with the whole or a component of a registered asset or liability or an anticipated highly probable
occurrence or exchange risk associated with an unregistered Groups’ commitment;
• Coverage of a net investment in a foreign operational unit.

NOS Group uses derivative financial instruments with fair value and cash flow hedges.
At the beginning of the hedge relationship, the Group formally designates and documents the hedging relationship for
which hedge accounting is intended to apply as well as the management and strategy purpose of such hedge.
The documentation includes the identification of the hedging instrument, the hedged item or transaction, the nature of the
risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness
requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all the following effectiveness requirements:

• There is an economic relationship’ between the hedged item and the hedging instrument;

• The effect of credit risk does not “dominate the value changes” that result from that economic relationship; and
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item
that the Group hedges and the quantity of the hedging instrument that the Group actually uses to hedges that
quantity of hedged item.

Hedges that meet all the quantifying criteria for hedge accounting are accounted for, as described below:




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Fair value hedges
The change in the fair value of a hedging instrument is recognised in the statement of profit or loss. The change in the fair
value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is
also recognised in the statement of profit or loss.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using the EIR method. The EIR amortisation may begin as soon as an
adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to
the risk being hedged.
If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain
or loss recognised in profit or loss.

Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve,
while any ineffective portion is recognised immediately in the statement of profit or loss. The cash flow hedge reserve is
adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of
the hedged item.

The Group uses forward contracts of:

• currency contracts for its exposure to foreign currency risk in forecast transactions and firm commitments;

• interest rates to cover the risk of volatility of the interest rates;
• own shares contracts for its exposure to volatility in own shares to be distributed within the scope of share
incentive scheme.
The ineffective portion relating to foreign currency contracts is recognised as “Net foreign exchange losses/(gains)”, the
ineffective portion relating to interest rates is recognised as “Financial costs” and the ineffective portion relating to own
shares contracts is recognised as “Wages and salaries”.

On the quarter ended on 31 March 2023, the Group did not change the recognition method.
The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the
hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is
removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged
asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period. This also applies
where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently becomes a Group’s
commitment for which fair value hedge accounting is applied.
For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification
adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated
OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to
profit or loss as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any amount
remaining in accumulated OCI must be accounted for depending on the nature of the underlying transaction as described
above.




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2.3.12. Inventories
Inventories, which mainly include mobile phones, customer terminal equipment, DVDs, and content broadcasting rights,
are valued at the lower of their cost or net realizable value.
The acquisition cost includes the invoice price, freight, and insurance costs, using the Weighted Average Cost as the
method of costing goods sold.
Inventories are adjusted for technological obsolescence, as well as for the difference between the purchase cost and the
net realizable value, whichever is the lower, and this reduction is recognised directly in the income statement.
The net realizable value corresponds to the normal sale price less restocking costs and selling costs.
The differences between the cost and the corresponding net realizable value of inventories, when this is less than the cost,
are recorded as operating costs in “Cost of goods sold”.
Inventories in transit, since they are not available for consumption or sale, are separated out from other inventories and are
valued at their specific acquisition cost.
The signing of contracts related with sports content originates rights that are initially classified as contractual
commitments.

The content broadcasting rights are recorded in the consolidated statement of financial position, as Inventories, in the event
of the nonexistence of full right over the way of exploration of the asset, by the respective value of cost or net realizable
value, whenever it is lower, when programmatic content has been received and is available for exhibition or use, according
to contractual conditions, without any production or change, given that the necessary conditions for the organization of
each sports competition are present, which occurs in the homologation date of the participating teams in the competition
that is being held in the sports season to be initiated, by the organizing entity. The stated rights are recognised in the income
statement in “Direct costs: Exhibition costs”, on a systematic basis given the pattern of economic benefits obtained through
their commercial exploration. No balances of content rights are registered in the Inventories caption.
Due to the agreement between the three national operators of reciprocal availability, for several sports seasons
(collaborative arrangement), of sports content (national and international) owned by them, (Note 42.2), NOS considered
the recognition of the costs, excluding those divided by the remaining operators, on a systematic basis, given the pattern
of economic benefits obtained through their commercial exploration.



2.3.13. Subsidies
Subsidies are recognised at their fair value when there is a reasonable assurance that they will be received and Group
companies will meet the requirements for their award.
Operating subsidies, mainly for employee training, are recognised in the statement of comprehensive income by deduction
from the corresponding costs incurred.

Investment subsidies are recognised in the statement of financial position as deferred income.
If the subsidy is considered as deferred income, it is recognised as income on a systematic and rational basis during the
useful life of the asset.



2.3.14.Provisions and contingent liabilities
Provisions are recognised when:
• there is a present obligation arising from past events and it is likely that in settling that obligation, the expenditure
of internal resources will be necessary; and
• the amount or value of such obligation can be reasonably estimated.
When one of the above conditions is not met, the Group discloses the events as a contingent liability unless the likelihood
of an outflow of funds resulting from this contingency is remote, in which case they are not disclosed.
Provisions for legal procedures taking place against the Group are made in accordance with the risk assessments carried




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out by the Group and by their legal advisers, based on success rates.
Provisions for restructuring are only recognised when the Group has a detailed, formal plan, which identify the main features
of the restructuring program, and after these facts have been reported to the entities involved.
Provisions for dismantling costs, removal of assets and restoration of the site are recognised when the assets are installed,
in line with the best estimates available at that date. The amount of the provisioned liability reflects the effects of the
passage of time and the corresponding financial indexing is recognised in results as a financial cost.
Obligations arising from onerous contracts are recorded and measured as provisions. An onerous contract exists when the
Company is an integral part of a contract, whose compliance has associated costs directly associated with the contract
(both incremental costs and an allocation of costs directly related to the contract) that exceed future economic benefits.

Provisions for potential future operating losses are not covered.
Contingent liabilities are not recognised in the financial statements, unless the exception provided under IFRS 3 business
combination, and are disclosed whenever there is a good chance to shed resources including economic benefits. Contingent
assets are not recognised in the financial statements, being disclosed when there is a likelihood of a future influx of financial
resources.

Provisions are reviewed and brought up to date at the date of the statement of financial position to reflect the best estimate
at that time of the obligation concerned.



2.3.15. Rights of use and Leases
A lease is defined as a contract, or part of a contract, that transfers the right to use a good (the underlying asset) for a period
in exchange for a value.
At the beginning of each contract, it is evaluated and identified if it is or contains a lease. This assessment involves an
exercise of judgement as to whether each contract depends on a specific asset if NOS obtains substantially all the economic
benefits from the use of that asset and whether NOS has the right to control the use of the asset.
All contracts that constitute a lease are accounted for based on the on-balance model in a similar way with the treatment
that IAS 17 establishes for financial leases.
At the commencement date of the lease, NOS recognises the liability related to lease payments (lease liability) and the
asset representing the right to use the underlying asset during the lease period (the right of use or "ROU").
The cost of interest on the lease liability and the depreciation of the ROU are recognised separately.
Lease liability is remeasured at the occurrence of certain events (such as a change in the lease period, a change in future
payments that result from a change in the reference rate or rate used to determine such payments). This remeasurement
of the lease liability is recognised as an adjustment in the ROU.
The estimated costs of dismantling, removal of assets and restoration of the site related with leases are recognised in
tangible assets with works carried out (Note 2.3.3).



2.3.15.1 Rights of use of assets
The Group recognizes the right to use the assets at the start date of the lease (that is, the date on which the underlying
asset is available for use).

The right to use the assets is recorded at acquisition cost, deducted from accumulated depreciation and impairment losses
and adjusted for any new measurement of lease liabilities. The cost of the ROU of the assets includes the recognised
amount of the lease liability, any direct costs incurred initially, and payments already made prior to the initial rental date,
less any incentives received.
Unless it is reasonably certain that the Group obtains ownership of the leased asset at the end of the lease term, the
recognised right of use of the assets is depreciated on a straight-line basis over the shorter of its estimated useful life and
the term of the lease.




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Rights of use are subject to impairment.
The rights of used of assets are depreciated using the straight-line method by the shortest period between length of the
contract and its expected useful life.
If at the end of the leasing contract the asset is transferred to the company, or if the cost reflects the possibility of exercising
the call option, the depreciation is calculated according to the estimated useful life of the asset.



2.3.15.2 Liabilities with leases
At the start date of the lease, the Group recognizes the liabilities measured at the present value of the future payments to
be made until the end of the lease.

Lease payments include fixed payments (including fixed payments on the substance), deducted of any incentives to be
received, variable payments, dependent on an index or rate, and expected amounts to be paid under residual value
guarantees. The lease payments also include the exercise price of a call option if it is reasonably certain that the Group will
exercise the option, and penalties for termination of the lease if it is reasonably certain that the Group will terminate the
lease.

Variable payments that do not depend on an index or a rate are recognised as an expense in the period in which the event
giving rise to them occurs.
To calculate the present value of the lease payments, the Group uses the incremental loan rate at the start date of the lease
if the implied interest rate is not readily determinable.
After the start date of the lease, the value of the lease liability is increased to reflect the increase in interest and reduces by
the payments made. In addition, the book value of the lease liability is remeasured if there is a change, such as a change in
the lease term, fixed payments or the purchase decision of the underlying asset.



2.3.16 Income Tax
NOS is covered by the special tax regime for groups of companies, which covers all the companies in which it directly or
indirectly owns at least 75% of the share capital and which simultaneously are resident in Portugal and subject to Corporate
Income Tax (IRC).
The remaining subsidiaries not covered by the special tax regime for groups of companies are taxed individually based on
their respective taxable incomes and the applicable tax rates.
Income tax is stated in accordance with the IAS 12 criteria. In calculating the cost relating to income tax for the period, in
addition to current tax, allowance is also made for the effect of deferred tax calculated in accordance with the liability
method, taking into account the temporary differences resulting from the difference between the tax basis of assets and
liabilities and their values as stated in the consolidated financial statements, and the tax losses carried forward at the date
of the statement of financial position. The deferred income tax assets and liabilities were calculated based on the tax
legislation currently in force or of legislation already published for future application.
Deferred income tax assets are recognised for all the deductible temporary differences until it is likely that a taxable profit
is obtained to which the deductible temporary difference may be used, unless the deferred income tax asset results from
the initial recognition of an asset or liability in a transaction which:

• Is not a concentration of business activities;
• At the moment of the transaction, it does not affect neither the accounting profit nor the taxable profit (fiscal
loss);
• With respect to deductible temporary differences arising from investments in subsidiaries, branches and
associates and interests in joint arrangements, deferred income tax assets are recognised only to the extent that
the temporary difference will revert in the foreseeable future and taxable profit against which the temporary
difference can be used will be available.




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As stipulated in the above standard, deferred income tax assets are recognised only when there is reasonable assurance
that these may be used to reduce future taxable profit, or when there are deferred income tax liabilities whose reversal is
expected to occur in the same period in which the deferred income tax assets are reversed. At the end of each period an
assessment is made of deferred income tax assets, and these are adjusted in line with the likelihood of their future use.

The amount of tax to be included, either in current tax or in deferred tax resulting from transactions or events recognised
in equity accounts, is recorded directly under those items and does not affect the results for the period.
In a business combination, the deferred tax benefits acquired are recognised as follows:
• The deferred tax benefits acquired recognised in the measurement period of one year after the date of merger
and that result from new information about facts and circumstances that existed at the date of acquisition are
recorded against the goodwill-carrying amount related to the acquisition. If the goodwill-carrying amount is null,
any remaining deferred tax benefits are recognised in the income statement.
• All the other acquired deferred tax benefits performed are recognised in the income statement (when applicable,
directly in shareholders' equity).



2.3.17 Payment based in shares
The benefits granted to employees under share purchase or share option incentive plans are recorded in accordance with
the requirements of IFRS 2 – Share-based payments.

In accordance with IFRS 2, since it is not possible to reliably estimate the fair value of the services received from employees,
their value is measured by reference to the fair value of equity instruments in accordance with their share price at the grant
date.
The cost is recognised, linearly over the period in which the service is provided by employees, under the caption “Wages
and salaries” in the income statement, with the corresponding increase in “Other reserves” in equity.

The accumulated cost recognised at the date of each statement of financial position up to the vesting reflects the best
estimate of the number of own shares that will be vested, weighted by the tire elapse between the grant and the vesting.
The impact on the income statement each year corresponds to the accumulated cost valuation between the beginning and
the end of the year.
In turn, benefits granted based on shares but paid in cash lead to the recognition of a liability valued at fair value at the date
of the statement of financial position.



2.3.18 Equity
Share issue premiums
Issue of shares corresponds to premiums from the issuance or capital increases. According to Portuguese law, share
premiums follow the treatment given to the "Legal reserve", that is, the values are not distributable, except in case of
liquidation, but can be used to absorb losses after having exhausted all other reserves and to increase share capital.
Own shares

The own shares are recorded at acquisition cost as a deduction from equity. Gains or losses on the sale of own shares are
recorded under "Other reserves".
Legal reserve
Portuguese commercial legislation requires that at least 5% of annual net profit must be appropriated to a legal reserve
until it represents at least 20% of the share capital. This reserve is not distributable, except in case of liquidation, but can
be used to absorb losses, after having exhausted all other reserves and to increase share capital.




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Other reserves and accumulated earnings
Reserves for plans of medium term incentive
According to IFRS 2 - "Share-based payments", the responsibility with the medium-term incentive plans settled by delivery
of own shares is recorded as credit under "Reservations for mid-term incentive plans" and such reserve is not likely to be
distributed or used to absorb losses.

Hedging reserves
Hedging reserve reflects the changes in fair value of derivative financial instruments as cash flow hedges that are considered
effective, and they are not likely to be distributed or be used to absorb losses.
Own shares reserves

The "Own shares reserves” reflect the value of the shares acquired and follows the same legal regime as the legal reserve.

Other reserves and Retained results
This item includes the results available for distribution to shareholders and earnings per fair value in financial instruments
increases, financial investments and investment properties, which, in accordance with paragraph 2 of article 32 of the CSC,
will only be available for distribution when the elements or rights that originated them are sold, exercised, terminated, or
settled.


Under Portuguese law, the amount of distributable reserves is determined according to the individual financial statements
of the company prepared in accordance with IFRS. In addition, the increases resulting from the application of fair value
through equity components, including its application through the net profit can only be distributed when the elements that
originated them are sold, exercised liquidated or when the end their use, in the case of tangible assets or intangible assets.

Dividends
The company recognizes the liability, as well as its impact over the equity, associated with the responsibility to distribute
dividends when it is approved by the shareholders.



2.3.19 Revenue
The main types of revenue of NOS subsidiaries are as follows:
• Revenues of Communications Services:
Cable/Satellite television, fixed broadband and fixed voice: The revenues from services provided using the fibre
optic cable network result from:

• basic channel subscription packages that can be sold in a bundle with fixed broadband/fixed voice
services;
• premium channel subscription packages and S-VOD;

• terminal equipment rental;
• consumption of content (VOD);

• traffic and voice termination;

• service activation;
• sale of equipment, licensing and others; and

• other additional services (ex: firewall, antivirus).
• Mobile broadband and voice services: Revenues from mobile broadband Internet access services and mobile
voice services result mainly from monthly subscriptions and/or usage of the Internet and voice service, as well
as the traffic associated with the type chosen by the client.
• Advertising revenue: Advertising revenues mainly derive from the attraction of advertising for Pay TV channels




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to which the Group has publicity rights and in cinemas. These revenues are recognised from when they are
received, taken off any discounts given.
• Film showings and distribution: Distribution revenue pertains to the distribution of films to film exhibitors not
distributed by the Group, that are included in the film showings, whilst income from film showings mostly derive
from cinema ticket sales and the product sales in the bars; the film showings revenue includes the revenue from
ticket sales and bar sales respectively.
• Revenue from distributing channel content: Revenue from distribution essentially includes the sale of DVDs, the
sale of content and the distribution of television channels subscriptions to third parties and count from the time
at which they are sold, shown, and made available for distribution to telecommunications operators, respectively.
The television channels distribution by subscription to third parties consists in the transmission and
retransmission of information, including, namely, the distribution of television emissions and radio broadcasting,
owned and third partied owned, codified or not, as well as the addressed nature rendered services and data
transmission. NOS is leading these activities since it: controls the channel exhibition, in its package of products
disposes the power of pricing, the retribution corresponds to the service price and not to a mere commission and
it is exposed to the credit risk of its customers.
• Consultancy and datacenter management: information systems consultancy and datacenter management are
the major services rendered by NOS Sistemas.
• Insurance brokerage commissions: income from insurance sales commissions is obtained by NOS Mediação de
Seguros.

• Intelligent Alarm: the revenues obtained with the NOS | Securitas Intelligent Alarm include security solutions for
people and property, which combine the professional monitoring of the Securitas Alarm Center with NOS latest
technology.

The Group's revenue is based on the five-step model established by IFRS 15:
• Identification of the contract with the customer;

• Identification of performance obligations;

• Determining the price of the transaction;
• Allocation of the price of the transaction to the performance obligations; and

• Recognition of revenue.
Thus, at the beginning of each contract, the NOS Group evaluates the promised goods or services and identifies, as a
performance obligation, every promise of transfer to the customer of any distinct good or service (or package of goods or
services). These promises in customer contracts may be express or implied, provided such promises create a valid
expectation in the client that the entity will transfer a good or service to the customer, based on the entity's published
policies, specific statements or usual business practices.
The NOS Group has internally defined that a performance obligation corresponds to the promise of delivery of a good or
service that can be used in an isolated/separated way by the customer and on which there is a clear perception of this good
or service by the customer among the available in each contract.
The main performance obligations are summarized as Sales of Mobile Phones, Telephones, Hotspots, DVD's, Movie Tickets,
Licensing and Other Equipment and the Services Rendered of Mobile Internet Services, Fixed Internet, Mobile Phone,
Landline Phone, Television, Consulting, Cloud/ IT Services, distribution of audio-visual rights among others.

The provision of Set-top-boxes, routers, modems and other terminal equipment at the customers' home and respective
installation and activation services were considered by the group as not corresponding to a performance obligation, since
they are necessary actions to fulfil the promised performance obligation.
In determining and allocating the transaction price of each performance obligation, NOS used stand-alone prices of the
promised products and services at the time of entering into the agreement with the customer to distribute the amount
expected to be received under the contract.

The recognition of revenue occurs at the time of performance of each performance obligation.




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Revenue from selling equipment is included when the buyer takes on the risks and advantages of taking possession of
goods and the value of the benefits are reasonably quantified.
Revenue from telecom services subscriptions (TV, internet, mobile and fixed voice services bundle subscription, individually
or as a bundle) is recognised linearly over the subscription period.

Revenue from equipment rental is recognised linearly over the rental agreement, except in the case of instalment sales,
which are accounted as credit sales.
The Group attributes to its customers loyalty points in each call or recharge, that might be exchanged, over a limited period,
for discounts in equipment purchase.
In each reporting period, NOS recognizes the current liability with discounts to be awarded in the future. This responsibility
is calculated based on the amount of points awarded and not yet used, discounted from the estimate of points that will not
be used (based on the history of use) and valued based on the offer available at each time for the use of points (specific
catalog).
The recognition of liability configures a deferred income (until the date on which the points are definitively converted into
benefits), which is recognised at the time of the use of the discount, as a revenue accrual.

Revenue related with traffic, roaming, data usage, audiovisual content, and others is recognised when the service is
rendered. The Group also offers various personalised solutions, particularly to its corporate customers in telecom
management, access, voice, and data transmission services. These personalised solutions are also recognised when the
service is rendered.
Unless demanded or allowed by IFRS, the compensation of revenues and costs is not performed, namely, when it reflects
the nature of the transaction or other event.

The compensation of revenues and costs is performed in the following situations:
• When the gross inflows from economic benefits do not result in equity increases to the Group, i.e., the amount
charged to the customer is equal to the amount delivered to the partner. This situation is applicable to the
revenue obtained by the invoicing special services operators, in these cases the amounts charged on account of
the capital are not revenue; and,
• When the counterpart is not a “customer” but a partner who shares the risks and benefits of developing a product
or services in order for it to be commercialised. Thus, a counterpart of a contract will not be a customer if, for
instance, the counterpart has hired from NOS to participate in an activity or process in which the parties in the
contract share the risks and benefits instead of obtaining the Group’s ordinary activities result. These cases are
designated collaborative arrangements. This situation is applicable to revenues from operators affected by the
reciprocal availability agreement regarding broadcasting rights of sports content.
Discounts granted to customers related with loyalty programmes are allocated to the entire retention contract to which the
customer is committed to. Therefore, the discount is recognised as the goods and services made available to the customer.
Amounts that have not been invoiced for are included based on estimates. The differences between the estimated amounts
and the actual amounts, which are normally immaterial, are recorded in the next financial year.

The revenue from penalties is recognised in the “Other income” item upon receival.
Interest revenue is recognised using the effective interest method, only when they generate future economic benefits.



2.3.20 Accruals
Group’s revenues and costs are recognised in accordance with the accrual’s principle, under which they are recognised as
they are generated or incurred, regardless of when they are received or paid.
The costs and revenues related to the current period and whose expenses and income will only occur in future periods are
registered under “Accounts receivable – trade”, “Accounts receivable – other”, “Prepaid expenses”, “Accrued expenses” and
“Deferred income”, as well as the expenses and income that have already occurred that relate to future periods, which will
be recognised in each of those periods, for the corresponding amount.
The costs related to the current period and whose expenses will only occur in future periods are registered under “Accrued




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expenses” when it is possible to estimate with certainty the related amount, as well as the timing of the expense’s
materialization. If uncertainty exists related to any of these aspects, the value is classified as Provisions (Note 2.3.14).



2.3.21 Assets, liabilities and transactions in foreign currencies
Transactions in foreign currencies are converted into the functional currency at the exchange rate on the transactions dates.
On each accounting date, outstanding balances (monetary items) are updated by applying the exchange rate prevailing on
that date. The exchange rate differences in this update are recognised in the income statement for the year in which they
were calculated in the item "Losses / (gains) on exchange variations". Exchange rate variations generated on monetary
items, which constitute enlargement of the investment denominated in the functional currency of the Group or of the
subsidiary in question, are recognised in equity. Exchange rate differences on non-monetary items are classified in “Other
reserves” in equity.
The financial statements of subsidiaries denominated in foreign currencies are converted at the following exchange rates:
• The exchange rate obtaining on the date of the statement of financial position for the conversion of assets and
liabilities;

• The average exchange rate in the period for the conversion of items in the income statement, apart from cases
of affiliated companies that are in a hyperinflationary economy;


• The average exchange rate in the period, for the conversion of cash flows (in cases where the exchange rate
approximates to the real rate, and for the remaining cash flows the rate of exchange at the date of the operations
is used), apart from cases of affiliated companies that are in a hyperinflationary economy;

• The historical exchange rate for the conversion of equity accounts.
Exchange differences arising from the conversion into euros of the financial statements of subsidiaries denominated in
foreign currencies are included in equity under “Other reserves”.
In the last quarter of 2017, the Angolan economy was considered a hyperinflationary economy according to IAS 29 - Financial
Reporting in Hyperinflationary Economies.
This standard requires that the financial statements prepared in the currency of a hyperinflationary must be expressed in
terms of the current measurement unit at the financial statements’ preparation date.
In summary, the general aspects that must be considered for the restatement of the individual financial statements are the
following ones:

• The monetary assets and liabilities are not amended because they are already updated to the current unit at the
financial statements date;
• The non-monetary assets and liabilities (that are still not expressed in terms of the current unit at the financial
statements) are restated by the application of an index;
• The effect of the inflation on the net monetary position of the subsidiaries companies is reflected in the income
statement as a loss in the net monetary position.
Additionally, according to IAS 21, the restatement of the consolidated financial statements is prohibited when the parent
company does not operate in a hyperinflationary economy.
The conversion coefficient that was used for the restatement of the individual financial statements of the subsidiaries in
Angola was the Consumer Price Index (CPI), issued by the National Bank of Angola.

In the last quarter of 2019, the Angolan economy was no longer considered a hyperinflationary economy.
IAS 29 - Financial Reporting in Hyperinflationary Economies provides that “when an economy ceases to be hyperinflationary,
the company should treat the amounts expressed in the current unit of measurement at the end of the previous reporting
period, as the basis for the carrying amounts in its statements subsequent financial statements”. In this way, the
adjustments / revaluations, carried out until the end of the classification as a hyperinflationary economy, are treated as a
deemed cost and recognised in the same proportion as the assets that gave rise to it.




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At 31 December 2022 and 31 March 2023, assets and liabilities expressed in foreign currencies were converted into euros
using the following exchange rates of such currencies against the euro, as published by the Bank of Portugal:



31-12-2022 31-03-2023

US Dollar 1.0666 1.0875
Angolan Kwanza 537.5664 547.0125
British Pound 0.8869 0.8792
Mozambican Metical 67.4500 68.7700
Canadian Dollar 1.4440 1.4737
Swiss Franc 0.9847 0.9968
Real 5.6386 5.5158




In the quarters ended on 31 March 2022 and 2023, the income statements of subsidiaries expressed in foreign currencies
were converted to euros at the average exchange rates of the currencies of their countries of origin against the euro. The
average exchange rates used are as follows:

3M 22 3M 23

Angolan Kwanza 543.2726 541.8054
Mozambican Metical 70.4833 68.2633




2.3.22 Financial charges and borrowings
Financial charges related to borrowings are recognised as costs in accordance with the accrual’s principle, except in the case
of loans incurred (whether these are generic or specific) for the acquisition, construction or production of an asset that
takes a substantial period (over one year) to be ready for use, which are capitalized in the acquisition cost of that asset.
Costs from capitalized borrowings are determined having in consideration the amount of borrowing costs obtained that can
be capitalized, according to the application of a capitalization rate over the expenses associated with that asset. The
capitalization rate (aligned with NOS average financing rate) as well as with the costs to be capitalized are determined
monthly, taking into consideration the monthly balance of eligible borrowings and the monthly amount of the asset in
progress that qualifies.



2.3.23 Investment property
Investment property mainly includes buildings held to generate rents rather than for use in the production or supply of
goods or services, or for administrative purposes, or for sale in the ordinary course of business. These are measured initially
at cost.
Subsequently, the Group uses the cost model for the valuation of investment property since use of the fair value model
would not result in material differences.
An investment property is eliminated from the statement of financial position on disposal or when the investment property
is taken permanently out of use and no financial benefit is expected from its disposal.



2.3.24 Fair value measurement
The Group measures part of the financial assets, such as financial assets available for sale, and some of its non-financial
assets, at fair value on the date of the financial statements.
The fair value measurement assumes that the asset or liability is exchanged in an orderly transaction among market




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participants to sell the asset or transfer the liability at the measurement date under current market conditions. The fair value
measurement is based on the assumption that the transaction to sell the asset or transfer the liability may occur:

• On the main market of the assets and liabilities, or
• In the absence of a primary market, it is assumed that the transaction occurs in the most advantageous market.
This is what maximizes the amount that would be received for selling asset or minimizes the amount that would
be paid to transfer the liability, after considering transaction costs and transport costs.
Since different entities and businesses within a single entity can have access to different markets, the main or most
advantageous market for the same asset or liability can vary from one entity to another, or even between businesses within
the same entity, but it is assumed that they are accessible to the Group.

The fair value measurement uses assumptions that market participant’s use in defining price of the asset or liability,
assuming that market participants would use the asset to maximize its value.
The Group uses valuation techniques appropriate to the circumstances whenever there is information to measure the fair
value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities measured at fair value or of which disclosure is mandatory, are rated on a fair value hierarchy, which
ranks data in three levels to be used in the measurement at fair value, and detailed below:
• Level 1 – Listed and unadjusted market prices, in active markets for identical assets or liabilities that the entity
can access at the measurement date;

• Level 2 - valuation techniques using inputs that aren’t quoted, but which are directly or indirectly observable;
• Level 3 - valuation techniques using inputs not based on observable market data, based on unobservable inputs.

The fair value measurement is classified in the same fair value hierarchy level at the lowest level of input, which is significant
to the measurement as a whole.



2.3.25 Assets and liabilities offsetting
Financial assets and liabilities are offset and presented at the net amount when, and only when, the Group has the right to
offset the recognised amounts and intends to settle for the net amount.



2.3.26 Employee benefits
Personnel expenses are recognised when the service is rendered by employees independently of their date of payment.
Here are some specificities:
• Termination of employment. The benefits for termination of employment are due for payment when there is
cessation of employment before the normal retirement date or when an employee voluntarily accepts to leave in
exchange of these benefits. The Group recognizes these benefits when it can be shown to be committed to a
termination of current employees according to a detailed formal plan for termination and there is no realistic
possibility of withdrawal or these benefits are granted to encourage voluntary redundancy. When the benefits of
cessation of employment are due more than 12 months after the balance sheet date, they are updated to their
present value.
• Holiday, holiday allowances, and bonuses. According to the labor law, employees are entitled to 22 days annual
leave, as well as one month of holiday allowances, rights acquired in the year preceding payment. These liabilities
of the Group are recorded when incurred, independently of the moment of payment, and are reflected under the
item "Accounts payable and other".
• Labor Compensation Fund (FCT) and the Labor Compensation Guarantee Fund (FGCT). Based on the publication
of Law No. 70/2013 and subsequent regulation by Order No. 294-A / 2013, entered into force on 1 October the
Labor Compensation Fund schemes (FCT) and the Guarantee Fund Compensation of Labor (FGCT). In this
context, companies that hire a new employee are required to deduct a percentage of the respective salary for
these two new funds (0.925% to 0.075% and the FCT for FGCT), in order to ensure, in the future, the partial




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payment the compensation for dismissal. Considering the characteristics of each Fund, the following is
considered:
• The monthly deliveries to FGCT, made by the employer are recognised as expense in the period to which
they relate.

• The monthly deliveries to FCT, made by the employer are recognised as a financial asset, in the caption
"Other non-current financial assets” of the entity, measured at fair value with changes recognised in the
respective results.



2.3.27 Statement of cash flows
The statement of cash flows is prepared in accordance with the direct method. The Group classifies under “Cash and cash
equivalents” the assets with maturities of less than three months and for which the risk of change in value is negligible. For
purposes of the statement of cash flows, the balance of cash and cash equivalents also include bank overdrafts included in
the statement of financial position under "Borrowings".
The statement of cash flows is divided into operating, investing, and financing activities.

Operating activities include cash received from customers and payments to suppliers, staff and others related to operating
activities. Under "Other cash receipts / (payments) related with operating activity" includes the amount received and
subsequent payments related to assignments without recourse, coordinated by the Banco Comercial Português and Caixa
Geral de Depósitos, and these operations do not involve any change in the accounting treatment of the underlying
receivables or in the relationship with their clients.

The cash flows included in investing activities include acquisitions and disposals of investments in subsidiaries and cash
received and payments arising from the purchase and sale of tangible and intangible assets, amongst others.
Financing activities include cash received and payments relating to borrowings, the payment of interest and similar costs,
finance leases, the purchase and sale of own shares and the payment of dividends.



2.3.28 Subsequent events
Events occurring after the date of the statement of financial position, which provide additional information about conditions
that existed at that date, are considered in the preparation of financial statements of the quarter.

Events occurring after the date of the statement of financial position, which provide information on conditions that occur
after that date, are disclosed in the notes to the financial statements, when they are materially relevant.



3. Judgements and estimates
3.1. Relevant accounting estimates
The preparation of consolidated financial statements requires the Group's management to make judgments and estimates
that affect the statement of financial position and the reported results. These estimates are based on the best information
and knowledge about past and/or present events and on the operations that the Company considers it may implement in
the future. However, at the date of completion of such operations, their results may differ from these estimates.
Changes to these estimates that occur after the date of approval of the consolidated financial statements will be corrected
in the income statement in a prospective manner, in accordance with IAS 8 - "Accounting Policies, Changes in Accounting
Estimates and Errors".
The estimates and assumptions that imply a greater risk of giving rise to a material adjustment in assets and liabilities are
described below:

Entities included in the consolidation perimeter
To determine the entities to be included in the consolidation perimeter, the Group assesses the extent to which it is
exposed, or has rights, to variability in return from its involvement with that entity and can take possession of them through




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the power it holds over this entity.
The decision that an entity must be consolidated by the Group requires the use of judgment, estimates, and assumptions
to determine the extent to which the Group is exposed to return variability and the ability to take possession of them
through its power.

Other assumptions and estimates could lead to the Group's consolidation perimeter being different, with direct impact on
the consolidated financial statements.


Impairment of non-current assets, excluding goodwill
The determination of a possible impairment loss can be triggered by the occurrence of various events, such as the
availability of future financing, the cost of capital or other market, economic and legal changes or changes with an adverse
effect on the technological environment, many of which are beyond the Group's control.
The identification and assessment of impairment indicators, the estimation of future cash flows, and the calculation of the
recoverable value of assets involve a high degree of judgment by the Board.
Impairment of goodwill

Goodwill is annually subject to impairment tests or whenever there are indications of a possible loss of value, according to
the criteria referred on Note 8. The recoverable values of the cash-generating units to which goodwill is allocated are
determined based on the calculation of current use values. These calculations require the use of estimates by management.

Intangible and tangible assets
The life of an asset is the period during which the Company expects that an asset will be available for use and this should
be reviewed at least at the end of each financial year.
The determination of the useful lives of assets, the amortization/depreciation method to be applied, and the estimated
losses resulting from the replacement of equipment before the end of its useful life due to technological obsolescence is
crucial in determining the amount of amortization/depreciation to be recognised in the consolidated income statement
each period.

These three parameters are defined using management's best estimates for the assets and businesses concerned and
taking account of the practices adopted by companies in the sectors in which the Group operates.
The capitalized costs with the audiovisual content distribution rights acquired for commercialization in the various windows
of exhibition are amortised over the period of exploration of the respective contracts. Additionally, these assets are subject
to impairment tests whenever there are indications of changes in the pattern generation of future revenue underlying each
contract.
The residual value, the useful life and the depreciation methods are periodically revised by the various companies of the
Group and prospectively adjusted, if appropriated.

Rights of use
The Group determines the end of the lease as the non-cancelable part of the lease term, together with any periods covered
by an option to extend the lease if it is reasonably certain that it will be exercised, or any periods covered by an option to
terminate the lease agreement, if it is reasonably certain that it will not be exercised.
The Group has the option, under some of its lease agreements, to lease its assets for additional periods. NOS assesses the
reasonableness of exercising the option to renew the contract. That is, NOS considers all the relevant factors that create an
economic incentive for exercising the renewal. After the start date, the Group re-evaluates the termination of the contract
if there is a significant event or changes in circumstances that are under control and affect its ability to exercise (or not
exercise) the renewal option (a change in strategy of business).
Provisions
The Group periodically reviews any obligations arising from past events, which should be recognised or disclosed. The
subjectivity involved in determining the probability and amount of internal resources required to meet obligations may give
rise to significant adjustments, either due to changes in the assumptions made, or due to the future recognition of
provisions previously disclosed as contingent liabilities.




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Deferred income tax assets
Deferred income tax assets are recognised only when there is strong assurance that there will be future taxable income
available to use the temporary differences or when there are deferred tax liabilities whose reversal is expected in the same
period in which the deferred tax assets are reversed. The assessment of deferred income tax assets is undertaken by
management at the end of each period taking account of the expected future performance of the Group.

Expected credit losses

The credit risk on the balances of accounts receivable is assessed at each reporting date, using a collection matrix based on
the historical past collections adjusted from the future expectation of collections evolution, to determine the uncollectibility
rate. The expected credit losses of the accounts receivable are thus adjusted for the assessment made, which may differ
from the effective risk that will incurred in the future.
Fair value of financial assets and liabilities
When the fair value of an asset or liabilities is calculated, on an active market, the respective market price is used. When
there is no active market, which is the case with some of the Group's financial assets and liabilities, valuation techniques
generally accepted in the market, based on market assumptions, are used.
The Group applies evaluation techniques for unlisted financial instruments, such as derivatives, financial instruments at fair
value and instruments measured at amortised cost. The most frequently used valorization models are models of discounted
cash flows and option models, which incorporate, for example, interest rate and market volatility curves.

For certain types of more complex derivatives, more advanced valuation models are used containing assumptions and data
that are not directly observable in the market, for which the Group uses internal estimates and assumptions.



3.2. Errors, estimates, and changes to accounting policies
During the quarters ended 31 March 2022 and 2023 no material errors, estimates or changes in accounting policies were
recognised in relation to prior years. A reclassification of estimates to address uncertainties about the acceptance of a
particular tax treatment by the Tax Administration's was made from Taxes payable to deferred tax liabilities, amounting to
approximately €42.9 million (March 31, 2022: €43.1 million), with restatement of the period ended March 31, 2022, for
comparability purposes (Note 15).



4. Changes in the perimeter
During the quarter ended on 31 March 2022, there were no changes in the perimeter.
During the quarter ended on 31 March 2023, the following changes in perimeter occurred:

• Incorporation of the company Ten Twenty One, S.A., in February 2023, whose main activity is the provision of
engineering and consulting services in the area of information technologies, communications and electronics;
• Acquisition of the company BLU, S.A., in March 2023, whose main activity is the provision of telecommunications
services, establishment, management and operation of telecommunications networks.
Following the acquisition of BLU, S.A., NOS made a preliminary assessment of the fair value of assets acquired and liabilities
assumed through this operation, so the purchase price allocation is still subject to changes until the conclusion of the period
of one year from the control date, as permitted by IFRS 3 - Business Combinations. Nevertheless, NOS does not estimate
material changes as a result of any changes to the allocation made.




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The detail of net assets acquired and goodwill arising on this transaction is as follows:

ADJUSMENTS TO
BOOK VALUE FAIR VALUE
FAIR VALUE
ACQUIRED ASSETS
Contract costs - customer portfolio - 183 183
Accounts receivable 141 - 141
Prepaid expenses 21 - 21
Cash and cash equivalents 158 - 158
320 183 503
ACQUIRED LIABILITIES
Accounts payable 120 - 120
Tax payable 7 - 7
Deferred income 26 - 26
153 - 153
TOTAL NET ASSETS ACQUIRED 167 183 350
GOODWILL -
ACQUISITION PRICE 350


The difference between the amount paid and the net assets acquired was allocated in full to the company's client portfolio,
taking into account the rationale behind the acquisition operation.
The contribution of BLU, S.A. to net income and revenues for the quarter ended on 31 March 2023, was 14 thousand euros
and 56 thousand euros respectively, corresponding to a period of one month.
The net cash flows with the acquisition of BLU, S.A., resulted in a payment of 192 thousand euros, included in the cash flows
of Investment Activities (Price paid: 350 thousand euros; Cash and cash equivalents: 158 thousand euros).



5. Segment reporting
The business segments are as follows:
• Telco – TV, Internet (fixed and mobile) and voice (fixed and mobile) services rendered and includes the following
companies: NOS Technology, Per-mar, Sontária, NOS SGPS, NOS Açores, NOS Property, NOS Madeira, NOS SA,
NOS Audio- Sales and Distribution, Teliz Holding, NOS Sistemas, NOS Sistemas España, NOS Inovação, NOS
Internacional SGPS, NOS Corporate Center, NOS Wholesale, Fundo NOS 5G, Dualgrid, NOS Mediação de Seguros,
Ten Twenty One and BLU.
• Audiovisual – the supply of video production services and sales, cinema exhibition and distribution and the
acquisition/negotiation of Pay TV and VOD (video-on-demand) rights and includes the following companies: NOS
Audiovisuais, NOS Cinemas, Lusomundo Moçambique, Lda ("Lusomundo Moçambique"), Lusomundo Imobiliária
2, S.A. ("Lusomundo Imobiliária 2"), Lusomundo Sociedade de Investimentos Imobiliários, SGPS, S.A.
(“Lusomundo SII”), Empracine – Empresa Promotora de Atividades Cinematográficas, Lda (“Empracine”), NOS
Audio SGPS and Dreamia S.L.




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Assets and liabilities by segment at 31 December 2022 and 31 March 2023 are shown below:
31-12-2022
TELCO AUDIOVISUALS ELIMINATIONS GROUP
ASSETS
NON - CURRENT ASSETS:
Tangible assets 1,098,022 9,030 - 1,107,052
Intangible assets 1,117,022 92,536 - 1,209,558
Contract costs 160,594 - - 160,594
Rights of use 270,493 27,230 - 297,723
Investments in jointly controlled companies
122,712 46,256 (130,007) 38,961
and associated companies
Accounts receivable - other 43,569 3,082 (41,893) 4,758
Deferred income tax assets 81,545 8,009 - 89,554
Other non-current assets 16,917 463 - 17,380
TOTAL NON - CURRENT ASSETS 2,910,874 186,606 (171,900) 2,925,580
CURRENT ASSETS:
Inventories 66,657 566 - 67,223
Account receivables 391,650 47,390 (42,872) 396,168
Prepaid expenses 50,891 1,721 (380) 52,232
Other current assets 4,788 2,118 - 6,906
Cash and cash equivalents 14,265 950 - 15,215
TOTAL CURRENT ASSETS 528,251 52,745 (43,252) 537,744
TOTAL ASSETS 3,439,125 239,351 (215,152) 3,463,324
SHAREHOLDER'S EQUITY
Share capital 855,168 48,917 (48,917) 855,168
Capital issued premium 4,202 - - 4,202
Own shares (15,968) - - (15,968)
Legal reserve 1,030 1,989 (1,989) 1,030
Other reserves and accumulated earnings 7,998 37,897 (68,809) (22,914)
Net income 216,203 18,207 (9,836) 224,574
EQUITY BEFORE NON - CONTROLLING
1,068,633 107,010 (129,551) 1,046,092
INTERESTS
Non-controlling interests 6,514 - (263) 6,251
TOTAL EQUITY 1,075,147 107,010 (129,814) 1,052,343
LIABILITIES
NON - CURRENT LIABILITIES:
Borrowings 1,188,142 63,931 (41,892) 1,210,181
Provisions 73,656 7,611 - 81,267
Other non-current liabilities 44,952 - - 44,952
Deferred income tax liabilities 49,296 829 - 50,125
TOTAL NON - CURRENT LIABILITIES 1,356,046 72,371 (41,892) 1,386,525
CURRENT LIABILITIES:
Borrowings 433,941 17,185 (23,673) 427,453
Accounts payable 305,870 17,086 (15,812) 307,144
Tax payable 37,485 1,357 - 38,842
Accrued expenses 199,001 17,274 (3,845) 212,430
Other current liabilities 31,898 7,068 (379) 38,587
TOTAL CURRENT LIABILITIES 1,008,195 59,970 (43,709) 1,024,456
TOTAL LIABILITIES 2,364,241 132,341 (85,601) 2,410,981
TOTAL LIABILITIES AND SHAREHOLDER´S
3,439,388 239,351 (215,415) 3,463,324
EQUITY




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31-03-2023
TELCO AUDIOVISUALS ELIMINATIONS GROUP
ASSETS
NON - CURRENT ASSETS:
Tangible assets 1,096,668 9,277 - 1,105,945
Intangible assets 1,112,975 92,065 - 1,205,040
Contract costs 161,105 - - 161,105
Rights of use 271,719 36,728 - 308,447
Investments in jointly controlled companies
125,071 46,247 (130,007) 41,311
and associated companies
Accounts receivable - other 43,294 3,173 (41,893) 4,574
Deferred income tax assets 79,734 7,725 - 87,459
Other non-current assets 15,702 468 - 16,170
TOTAL NON - CURRENT ASSETS 2,906,268 195,683 (171,900) 2,930,051
CURRENT ASSETS: - - - -
Inventories 69,960 610 - 70,570
Account receivables 394,503 37,670 (34,747) 397,426
Prepaid expenses 59,163 1,452 (378) 60,237
Other current assets 4,855 2,427 (119) 7,163
Cash and cash equivalents 16,137 6,984 - 23,121
TOTAL CURRENT ASSETS 544,618 49,143 (35,244) 558,517
TOTAL ASSETS 3,450,886 244,826 (207,144) 3,488,568
SHAREHOLDER'S EQUITY - - - -
Share capital 855,168 48,917 (48,917) 855,168
Capital issued premium 4,202 - - 4,202
Own shares (14,377) - - (14,377)
Legal reserve 1,030 2,697 (2,697) 1,030
Other reserves and accumulated earnings 218,626 48,220 (70,903) 195,943
Net income 39,031 2,920 (7,036) 34,915
EQUITY BEFORE NON - CONTROLLING
1,103,680 102,754 (129,553) 1,076,881
INTERESTS
Non-controlling interests 6,374 - - 6,374
TOTAL EQUITY 1,110,054 102,754 (129,553) 1,083,255
LIABILITIES - - - -
NON - CURRENT LIABILITIES: - - - -
Borrowings 1,177,882 71,309 (41,894) 1,207,297
Provisions 73,159 7,716 - 80,875
Other non-current liabilities 44,444 - - 44,444
Deferred income tax liabilities 49,283 815 - 50,098
TOTAL NON - CURRENT LIABILITIES 1,344,768 79,840 (41,894) 1,382,714
CURRENT LIABILITIES: - - - -
Borrowings 422,517 19,766 (18,377) 423,906
Accounts payable 297,701 17,802 (12,716) 302,787
Tax payable 40,629 1,102 (119) 41,612
Accrued expenses 200,105 16,668 (4,106) 212,667
TOTAL CURRENT LIABILITIES 996,064 62,232 (35,697) 1,022,599
TOTAL LIABILITIES 2,340,832 142,072 (77,591) 2,405,313
TOTAL LIABILITIES AND SHAREHOLDER´S
3,450,886 244,826 (207,144) 3,488,568
EQUITY




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The results by segment and investments in tangible and intangible assets, contract costs and rights of use for the quarters
ended on 31 March 2022 and 2023 are shown below:

3M 22
TELCO AUDIOVISUALS ELIMINATIONS GROUP
REVENUES:
Services rendered 322,457 16,643 (11,130) 327,970
Sales 35,980 1,977 (32) 37,925
Other operating revenues 7,343 279 (150) 7,472
365,780 18,899 (11,312) 373,367
COSTS, LOSSES AND GAINS:
Wages and salaries 18,033 2,259 - 20,292
Direct costs 85,915 2,162 (7,556) 80,521
Costs of products sold 34,675 407 (9) 35,073
Marketing and advertising 7,649 594 (2,969) 5,274
Support services 20,706 702 (778) 20,630
Supplies and external services 36,988 1,185 - 38,173
Other operating losses / (gains) 279 55 - 334
Taxes 8,767 21 - 8,788
Provisions and adjustments 4,854 (13) - 4,841
217,866 7,372 (11,312) 213,926
EBITDA 147,914 11,527 - 159,441
Depreciation, amortisation and impairment losses 102,572 7,833 - 110,405
Other losses / (gains), net (2,882) 155 - (2,727)
INCOME BEFORE LOSSES / (GAINS)
PARTICIPATED COMPANIES, FINANCIAL 48,224 3,539 - 51,763
RESULTS AND TAXES
Net losses / (gains) of affiliated companies (5,200) (107) - (5,307)
Financial costs 7,775 363 - 8,138
Net foreign exchange losses / (gains) 73 19 - 92
Net losses / (gains) on financial assets (7,344) (2,754) 10,132 34
Net other financial expenses / (income) 783 3 - 786
(3,913) (2,476) 10,132 3,743
INCOME BEFORE TAXES 52,137 6,015 (10,132) 48,020
Income taxes 6,131 812 - 6,943
NET INCOME 46,006 5,203 (10,132) 41,077
CAPEX 132,688 10,563 - 143,251
EBITDA - CAPEX 15,226 964 - 16,190




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3M23
TELCO AUDIOVISUALS ELIMINATIONS GROUP
REVENUES:
Services rendered 340,651 18,695 (10,010) 349,336
Sales 22,315 3,178 (83) 25,410
Other operating revenues 6,638 169 (149) 6,658
369,604 22,042 (10,242) 381,404
COSTS, LOSSES AND GAINS:
Wages and salaries 19,380 2,587 - 21,967
Direct costs 83,584 4,244 (6,229) 81,599
Costs of products sold 21,162 628 (10) 21,780
Marketing and advertising 11,554 626 (3,000) 9,180
Support services 24,047 704 (718) 24,033
Supplies and external services 33,911 2,158 (285) 35,784
Other operating losses / (gains) 249 40 - 289
Taxes 8,992 24 - 9,016
Provisions and adjustments 4,247 (35) - 4,212
207,126 10,976 (10,242) 207,860
EBITDA 162,478 11,066 - 173,544
Depreciation, amortisation and impairment losses 113,707 6,698 - 120,405
Other losses / (gains), net 432 65 - 497
Reestructuring costs 293 66 - 359
Losses / (gains) on sale of assets, net (80) - - (80)
Other losses / (gains) non recurrent net 219 (1) - 218
INCOME BEFORE LOSSES / (GAINS)
PARTICIPATED COMPANIES, FINANCIAL 48,339 4,303 - 52,642
RESULTS AND TAXES
Net losses / (gains) of affiliated companies (2,539) 9 - (2,530)
Financial costs 11,390 490 - 11,880
Net foreign exchange losses / (gains) 151 (30) - 121
Net losses / (gains) on financial assets (7,031) (1) 7,036 4
Net other financial expenses / (income) 967 6 - 973
2,938 474 7,036 10,448
INCOME BEFORE TAXES 45,401 3,829 (7,036) 42,194
Income taxes 6,237 909 - 7,146
NET INCOME 39,164 2,920 (7,036) 35,048
CAPEX 110,121 15,978 - 126,099
EBITDA - CAPEX 52,357 (4,912) - 47,445



EBITDA = Operational Result + Depreciation, amortization and impairment losses + Restructuring costs + Losses / (gains)
on sale of assets + Other losses / (gains) non-recurrent

CAPEX = Increases in tangible and intangible assets, contract costs and rights of use
Transactions between segments are performed on market terms and conditions in a comparable way to transactions
performed with third parties.

At 31 March 2023, fully consolidated foreign companies represent less than 1% of assets (at 31 March 2022: less than 1%)
and their turnover is less than 0.1% of consolidated turnover.




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6. Financial assets and liabilities classified in accordance with the IFRS 9 – financial instruments
The accounting policies set out in IFRS 9 for financial instruments were applied to the following items:
Considering its nature, the balances of the amounts to be paid and received to/from state and other public entities were
considered outside the scope of IFRS 7. Also, the captions of “Prepaid expenses” and “Deferred income” were not included
in this note, as the nature of such balances are not included in the scope of IFRS 7.
The Board of Directors believes that the fair value of the breakdown of financial instruments recorded at amortised cost or
registered at the present value of the payments does not differ significantly from their book value. This decision is based in
the contractual terms of each financial instrument.
31-12-2022
TOTAL NON
FINANCIAL FINANCIAL FINANCIAL FINANCIAL
DERIVATIVES TOTAL
ASSETS LIABILITIES ASSETS AND ASSETS AND
LIABILITIES LIABILITIES
ASSETS
Other financial assets non-current (Note 14) 5,248 - - 5,248 - 5,248
Derivative financial instruments (Note 20) - 11,249 - 11,249 - 11,249
Accounts receivable - trade (Note 17) 319,441 - - 319,441 - 319,441
Accounts receivable - other (Note 12) 9,425 - - 9,425 11,965 21,390
Cash and cash equivalents (Note 21) 15,215 - - 15,215 - 15,215
TOTAL FINANCIAL ASSETS 349,329 11,249 - 360,578 11,965 372,543
LIABILITIES
Borrowings (Note 24) - - 1,637,634 1,637,634 - 1,637,634
Derivative financial instruments (Note 20) - 397 - 397 - 397
Accounts payable - trade (Note 28) - - 253,355 253,355 - 253,355
Accounts payable - other (Note 29) - - 95,725 95,725 192 95,917
Accrued expenses (Note 26) - - 212,430 212,430 - 212,430
TOTAL FINANCIAL LIABILITIES - 397 2,199,144 2,199,541 192 2,199,733


31-03-2023
TOTAL NON
FINANCIAL FINANCIAL FINANCIAL FINANCIAL
DERIVATIVES TOTAL
ASSETS LIABILITIES ASSETS AND ASSETS AND
LIABILITIES LIABILITIES
ASSETS
Other financial assets non-current (Note 14) 5,286 - - 5,286 - 5,286
Derivative financial instruments (Note 20) - 10,111 - 10,111 - 10,111
Accounts receivable - trade (Note 17) 318,200 - - 318,200 - 318,200
Accounts receivable - other (Note 12) 9,054 - - 9,054 13,701 22,755
Cash and cash equivalents (Note 21) 23,121 - - 23,121 - 23,121
TOTAL FINANCIAL ASSETS 355,661 10,111 - 365,772 13,701 379,473
LIABILITIES
Borrowings (Note 24) - - 1,631,203 1,631,203 - 1,631,203
Derivative financial instruments (Note 20) - 712 - 712 - 712
Accounts payable - trade (Note 28) - - 268,893 268,893 - 268,893
Accounts payable - other (Note 29) - - 75,415 75,415 170 75,585
Accrued expenses (Note 26) - - 212,667 212,667 - 212,667
TOTAL FINANCIAL LIABILITIES - 712 2,188,178 2,188,890 170 2,189,060




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7. Tangible Assets
In the quarters ended on 31 March 2022 and 2023, the movements in this item were as follows:

DISPOSALS
TRANSFERS
31-12-2021 INCREASES AND WRITE- 31-03-2022
AND OTHERS
OFFS
ACQUISITION COST
Lands 796 - - - 796
Buildings and other constructions 276,320 - (10) 8,323 284,633
Basic equipment 2,765,157 12,445 (6,861) 44,045 2,814,786
Transportation equipment 514 - - - 514
Tools and dies 1,596 - - - 1,596
Administrative equipment 195,035 378 (466) 571 195,518
Other tangible assets 43,864 36 - 70 43,970
Tangible assets in-progress 41,226 67,359 - (49,910) 58,675
3,324,508 80,218 (7,337) 3,099 3,400,488
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Buildings and other constructions 180,308 2,860 - 2 183,170
Basic equipment 1,872,564 42,431 (5,709) (1,005) 1,908,281
Transportation equipment 513 - - - 513
Tools and dies 1,479 16 - - 1,495
Administrative equipment 185,182 1,053 (464) 4 185,775
Other tangible assets 43,362 89 - - 43,451
2,283,408 46,449 (6,173) (999) 2,322,685
1,041,100 33,769 (1,164) 4,098 1,077,803



DISPOSALS
TRANSFERS
31-12-2022 INCREASES AND WRITE- 31-03-2023
AND OTHERS
OFFS
ACQUISITION COST
Land 519 - - - 519
Buildings and other constructions 264,259 (557) (303) 2,665 266,064
Basic equipment 2,909,175 14,928 (16,631) 18,402 2,925,874
Transportation equipment 514 - - - 514
Tools and dies 1,607 - - - 1,607
Administrative equipment 195,921 363 (47) 689 196,926
Other tangible assets 44,162 37 - 59 44,258
Tangible assets in-progress 53,438 29,110 - (23,796) 58,752
3,469,595 43,881 (16,981) (1,981) 3,494,514
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Buildings and other constructions 159,518 4,097 (303) 36 163,348
Basic equipment 1,971,674 44,812 (16,548) (7,249) 1,992,689
Transportation equipment 514 - - - 514
Tools and dies 1,528 14 - - 1,542
Administrative equipment 185,650 987 (43) 10 186,604
Other tangible assets 43,659 215 - (2) 43,872
2,362,543 50,125 (16,894) (7,205) 2,388,569
1,107,052 (6,244) (87) 5,224 1,105,945




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The net amount of “Transfers and Others” predominantly corresponds to the transfer of assets from “Intangible assets”
(Note 8).

At 31 March 2023, the net value of tangible assets is composed mainly by basic equipment, namely:
• Network and telecommunications infrastructure (fibre optic network and cabling, network equipment, and other
equipment) in the amount of 828.8 million euros (31 December 2022: 831.8 million euros);
• Terminal equipment installed on client premises, included under Basic equipment, amounts to 104.4 million euros
(31 December 2022: 105.7 million euros).
Tangible and intangible assets include interests and other financial expenses incurred directly related to the construction of
certain tangible or intangible assets in progress.
At 31 March 2023, total net value of these costs amounted to 12.2 million euros (31 December 2022: 13.6 million euros).
The amount of interest capitalised in the quarter ended on 31 March 2023 amounted to 0.5 million euros (31 December
2022: 1.1 million euros).



8. Intangible assets
In the quarters ended on 31 March 2022 and 2023, the movements in this item were as follows:

TRANSFERS AND
31-12-2021 INCREASES 31-03-2022
OTHERS
ACQUISITION COST
Industrial property and other rights 1,981,959 674 33,054 2,015,687
Goodwill 641,400 - - 641,400
Intangible assets in-progress 39,861 26,796 (36,124) 30,533
2,663,220 27,470 (3,070) 2,687,620
ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES
Industrial property and other rights 1,456,166 24,486 32 1,480,684
Other intangible assets 2,023 - 32 2,055
1,458,189 24,486 64 1,482,739
1,205,031 2,984 (3,134) 1,204,881



TRANSFERS AND
31-12-2022 INCREASES 31-03-2023
OTHERS
ACQUISITION COST
Industrial property and other rights 2,103,180 1,315 22,107 2,126,602
Goodwill 641,400 - - 641,400
Intangible assets in-progress 27,217 26,852 (27,251) 26,818
2,771,797 28,167 (5,144) 2,794,820
ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES
Industrial property and other rights 1,559,907 27,461 68 1,587,436
Intangible assets in-progress 2,332 - 12 2,344
1,562,239 27,461 80 1,589,780
1,209,558 706 (5,224) 1,205,040




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The amount of “Transfers and Others” corresponds, mainly, to the transfer of assets to “Tangible assets" (Note 7).
At 31 March 2023, the item "Industrial property and other rights" includes mainly:
• A net amount of 141.3 million euros (31 December 2022: 143.2 million euros) corresponding to the acquisition of
frequency usage rights in 5G bands and other relevant bands (100MHz in the 3.6GHz band and 2x10MHz in the
700MHz band, also acquiring 2x5MHz in the 2100MHz band and 2x2MHz in the 900MHz band);
• A net amount of 83.7 million euros (31 December 2022: 85.8 million euros) mainly related to the investment, net
of amortization, made in the development of the UMTS network by NOS SA, including:

• 26.5 million euros (31 December 2022: 27.2 million euros) related to the license,
• 8.9 million euros (31 December 2022: 9.1 million euros) related to the agreement signed in 2002 between
Oni Way and the other three mobile telecommunication operators with activity in Portugal,
• 2.7 million euros (31 December 2022: 2.8 million euros) related to the Share Capital of “Fundação para as
Comunicações Móveis’’, established in 2007, under an agreement entered with “Ministério das Obras
Públicas, Transportes e Comunicações” and the three mobile telecommunication operators in Portugal;
• 38.8 million euros (31 December 2022: 39.7 million euros) related with the program “Initiatives E”; and

• the net amount of 4.6 million euros (31 December 2022: 4.7 million euros) corresponding to the valuation
of the license in the fair value allocation process resulting from the merger;
• A net amount of 70.5 million euros (31 December 2022: 71.4 million euros) corresponding to the current value of
future payments related with the acquisition of rights of use for frequencies (spectrum) bands of 800 MHz, 1800
MHz, 2600 MHz, which will be used to develop 4th generation services (LTE - Long Term Evolution) and a net
amount of 2.4 million euros (31 December 2022: 2.5 million euros) corresponding to the valuation of the license in
the fair value allocation process resulting from the merger;
• A net amount of 176 million euros related with software development (31 December 2022: 173 million euros);
• A net amount of 15.4 million euros (31 December 2022: 15.7 million euros) corresponding to the future rights to
use movies and series.

Increases in the quarter ended on 31 March 2023 correspond mainly to the acquisition of movies and television series usage
rights, for an amount of 3.4 million euros, and acquisition and development of software and other assets, for an amount of
24.7 million euros.


Impairment tests on goodwill

Goodwill was allocated to the cash-generating units of each reportable segment, as follows:

31-12-2022 31-03-2023
Telco 564,799 564,799
Audiovisuals 76,601 76,601
641,400 641,400




In 2022 impairment tests were performed based on assessments in accordance with the discounted cash flow method,
which corroborate the recoverability of the book value of the Goodwill. The amounts in these assessments are based on
the historical performances and forecast growth of the businesses and their markets, incorporated in medium/long term
approved plans.




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These estimates are based on the following assumptions:

AUDIOVISUALS SEGMENT
TELCO
NOS NOS
SEGMENT
AUDIOVISUALS CINEMAS
Discount rate (before taxes) 6.5% 9.4% 9.4%
Assessment period 5 years 5 years 5 years
EBITDA Growth (2022-27)* 3.0% -6.2% 4.2%
Perpetuity growth rate 2.0% 2.0% 2.0%
* EBITDA = Operating Income + Depreciation, Amortization and Impairment Losses + Restructuring Costs + Losses / (Gains) on disposal of assets + Other
Costs / (Gains) Non-Recurring (CAGR - average 5 years)

In the Telco segment, the assumptions used are based on past performance, evolution of the number of customers,
expected development of regulated tariffs, current market conditions, and expectations of future development.
In the cinema segment, the most affected segment by COVID-19, strong EBITDA growth is justified on the prospect of a
recovery in activity to levels close to those pre-pandemic.
The number of years specified in the impairment tests depends on the degree of maturity of the several businesses and
markets, and were determined based on the most appropriate criterion for the valuation of each cash-generating unit.

Sensitivity analyses were performed to variations in the discount rate and growth rate in the perpetuity of the various
reported segments, of 1 percentage point and 0.4 percentage points, respectively.
In the telecommunications segment, sensitivity analysis were also performed to variations in the operational indicators
RGU (Revenue Generating Unit), ARPU (Average Revenue per User), EBITDA and CAPEX, in perpetuity, of approximately
5%.

In the cinema segment, sensitivity analysis were conducted on variations in the projected number of tickets sold, average
revenue per ticket, EBITDA and CAPEX, in perpetuity, of approximately 5%.
These simulations did not result in the need to reinforce impairment.
In the three months ended on 31 March 2023, it was understood that the assumptions made in the impairment tests carried
out in 2022 were conservative due the more recent developments, so there are no indications of the existence of any
impairment.



9. Contract costs
In the quarters ended on 31 March 2022 and 2023, the movements in this item were as follows:

31-12-2021 INCREASES 31-03-2022
ACQUISITION COST
Cost of attracting customers 556,967 16,347 573,314
Costs of fulfilling customer contracts 256,884 7,393 264,277
813,851 23,740 837,591
ACCUMULATED AMORTIZATIONS AND IMPAIRMENT LOSSES
Cost of attracting customers 457,570 16,040 473,610
Costs of fulfilling customer contracts 194,163 8,443 202,606
651,733 24,483 676,216
162,118 (743) 161,375




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31-12-2022 INCREASES 31-03-2023
ACQUISITION COST
Cost of attracting customers 623,472 17,040 640,512
Costs of fulfilling customer contracts 286,840 7,927 294,767
910,312 24,967 935,279
ACCUMULATED AMORTIZATIONS AND IMPAIRMENT LOSSES
Cost of attracting customers 522,150 16,244 538,394
Costs of fulfilling customer contracts 227,568 8,212 235,780
749,718 24,456 774,174
160,594 511 161,105


Contract costs refers to commissions paid to third parties and other costs related to raising customers’ loyalty contracts,
including portability costs. These costs are amortised, systematically and consistently, with the transfer to customers of
goods or services to which the asset is related (between 2 and 4 years).



10. Rights of use
In the quarters ended on 31 March 2022 and 2023, the movements in this item were as follows:

TRANSFERS AND
31-12-2021 INCREASES 31-03-2022
OTHERS
ACQUISITION COST
Telecommunications towers and rooftops 142,921 1,740 - 144,661
Movie theatres 118,322 4,700 - 123,022
Transponders 91,787 - - 91,787
Equipments 149,061 2,830 - 151,891
Buildings 77,480 (113) - 77,367
Fiber optic rental 40,146 - - 40,146
Stores 21,445 314 - 21,759
Others 41,321 2,352 - 43,673
682,483 11,823 - 694,306
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES -
Telecommunications towers and rooftops 56,137 2,801 - 58,938
Movie theatres 89,550 2,234 - 91,784
Transponders 68,380 1,463 - 69,843
Equipments 102,784 3,931 - 106,715
Buildings 58,411 1,808 - 60,219
Fiber optic rental 32,019 763 - 32,782
Stores 16,585 680 - 17,265
Others 22,554 1,303 - 23,857
446,420 14,983 - 461,403
236,063 (3,160) - 232,903




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TRANSFERS AND
31-12-2022 INCREASES 31-03-2023
OTHERS
ACQUISITION COST
Telecommunications towers and rooftops 224,319 8,272 - 232,591
Movie theatres 124,323 11,562 - 135,885
Transponders 93,752 383 - 94,135
Equipments 165,910 3,606 - 169,516
Buildings 91,336 2,458 - 93,794
Fiber optic rental 40,137 - - 40,137
Stores 24,547 2,250 - 26,797
Others 43,415 553 - 43,968
807,739 29,084 - 836,823
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES
Telecommunications towers and rooftops 69,950 5,393 - 75,343
Movie theatres 97,322 2,023 - 99,345
Transponders 74,552 1,622 - 76,174
Equipments 119,138 4,172 - 123,310
Buildings 66,151 2,172 - 68,323
Fiber optic rental 35,068 762 - 35,830
Stores 19,874 952 - 20,826
Others 27,961 1,264 - 29,225
510,016 18,360 - 528,376
297,723 10,724 - 308,447


The caption "Rights of Use" refers to assets associated with lease contracts. These assets are amortised according to the
duration of the respective agreement, except for the lease of equipment with a purchase option that is amortised over the
estimated period of use.



11. Investments in jointly controlled companies and associated companies
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023

INVESTMENTS - EQUITY METHOD
Finstar* 32,811 35,230
Dreamia 2,347 2,350
Mstar 3,023 2,596
Other companies 780 1,135
ASSETS 38,961 41,311
* Consolidated from Finstar and ZAP Media




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Movements in “Investments in jointly controlled companies and associated companies” in the quarters ended on 31 March
2022 and 2023 were as follows:

3M 22 3M 23

AS AT JANUARY 1 17,016 38,961
Gains / (losses) of exercise (Note 36) 5,307 2,530
Changes in equity 4,270 (180)
AS AT MARCH 31 26,593 41,311



Amounts related to changes in equity of the companies registered by the equity method of consolidation are mainly related
to foreign exchange impacts of the investment in currencies other than euro.
The assets, liabilities and results of the jointly controlled companies and associated companies in the periods ended on 31
December 2022 and 31 March 2023, are as follows:
31-12-2022

NON- NON-
CURRENT CURRENT NET
ENTITY CURRENT CURRENT EQUITY REVENUE % HELD
ASSETS LIABILITIES INCOME
ASSETS LIABILITIES

Sport TV* 84,507 99,229 71 159,280 24,385 208,331 12,080 25%
Dreamia 876 16,985 6,924 6,066 4,871 16,568 (1,272) 50%
Finstar 77,697 199,314 - 167,640 109,371 339,309 68,907 30%
Mstar 1,064 16,336 - 9,009 8,391 30,665 2,927 30%
Upstar 976 20,089 - 18,873 2,192 21,423 920 30%
Big Picture 2 Films 770 893 522 780 361 3,270 (172) 20%
Dualgrid 6 267 - 176 97 516 38 50%
Dreamia S.L. 14,967 1,126 6,363 2,302 7,428 2,213 (9) 50%
180,863 354,239 13,880 364,126 157,096 622,295 83,419


31-03-2023

NON- NON-
CURRENT CURRENT NET
ENTITY CURRENT CURRENT EQUITY REVENUE % HELD
ASSETS LIABILITIES INCOME
ASSETS LIABILITIES

Sport TV* 39,455 78,119 71 90,794 26,709 59,469 2,324 25%
Dreamia 1,120 14,329 6,979 3,603 4,867 4,381 (5) 50%
Finstar 75,635 211,726 - 169,928 117,433 131,765 8,405 30%
Mstar 764 16,706 - 8,627 8,843 7,608 1,702 30%
Upstar 982 21,822 - 19,379 3,425 5,440 639 30%
Big Picture 2 Films 702 897 499 794 306 410 (55) 20%
Dualgrid 6 253 - 167 92 144 11 50%
Dreamia S.L. 15,022 1,215 6,409 2,391 7,437 585 8 50%
133,686 345,067 13,958 295,683 169,112 209,802 13,029

* Sport TV annual reporting period is from 1 July to 30 June (aligned with the period of the football seasons), therefore, in
the accounts presented in the table above, revenues and net income correspond to the values relating to the reported
period of 12 months of 2022 and 3 months of 2023, respectively.
Indicators presented in the tables above do not include consolidated adjustments which were considered when determining
the Group's interest in the results, assets and liabilities of jointly controlled and associated companies.




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In the quarter ended on 31 March 2023, the assets, liabilities and results of jointly controlled company ZAP Media (100%
held by Finstar) are:

31-03-2023
NON- NON-
CURRENT CURRENT
ENTITY CURRENT CURRENT EQUITY REVENUE NET INCOME
ASSETS LIABILITIES
ASSETS LIABILITIES
ZAP Media 28,631 19,922 - 30,804 17,749 12,766 2,073



The differences between the individual accounts (prepared in accordance with Angolan regulations) and the Finstar Group
(Finstar + ZAP Media) correspond, predominantly, to the annulment of balances and transactions between the companies
and the adjustment because the companies were in a hyperinflationary economy from 2017 to September 2019 (IAS 29).
The Group has several controls regarding the reporting process of its jointly controlled and associated companies. The
amounts included in the reported financial statements are subject to audit in cases where it is legally required. In the
remaining cases and in those where the audit has not been completed, specific review procedures are carried out by the
Group.
The Board of Directors believes that the seizure of assets to Mrs. Isabel dos Santos, in the specific case of the shares held
by her in Finstar, ZAP Media, Mstar and Upstar (where she holds 70% of the capital), does not change the control profile, in
this case joint control as defined in IFRS 11.



12. Accounts receivable - other
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
CURRENT NON CURRENT CURRENT NON CURRENT
Accounts receivables 5,646 5,640 5,484 5,440
Advances to suppliers 11,965 - 13,701 -
17,611 5,640 19,185 5,440
Impairment of other receivable (979) (882) (1,004) (866)
16,632 4,758 18,181 4,574




At 31 March 2023, this item corresponds predominantly to:
• short-term loans, medium and long-term loans from Group and interests' receivable; and
• associated companies, the amount receivable of 2.5 million euros from the sale of NOS International Carrier
Services.
Additionally, as of 31 March 2023, advances to suppliers correspond predominantly to amounts paid under football rights
contracts and other operating costs.

The summary of movements in impairment of other receivable in other accounts receivable is as follows:

3M 22 3M 23

AS AT JANUARY 1 1,524 1,861
Increases (Note 35) 127 39
Utilizations / Others 218 (30)
AS AT MARCH 31 1,869 1,870




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13. Taxes payable and receivable
At 31 December 2022 and 31 March 2023, these items were composed as follows:

31-12-2022 31-03-2023
RECEIVABLE PAYABLE RECEIVABLE PAYABLE
NON CURRENT
Debt regularization 369 - 262 -
369 - 262 -
CURRENT
Value-added tax (VAT) 6,484 21,891 6,741 16,647
Income taxes - 13,070 - 18,102
Personnel income tax witholdings - 1,883 - 4,832
Social Security contributions - 1,865 - 1,942
Others 422 133 422 89
6,906 38,842 7,163 41,612
7,275 38,842 7,425 41,612


At 31 December 2022 and 31 March 2023, the amounts of CIT (Corporate Income Tax) receivable and payable were
composed as follows:

31-12-2022 31-03-2023

Estimated current tax on income (45,776) (50,746)
Payments on account 30,596 30,596
Withholding income taxes 966 1,055
Others 1,144 993
(13,070) (18,102)




14. Other non-current financial assets
On 31 December 2022 and 31 March 2023, this caption is composed as follows:

31-12-2022 31-03-2023
Fundo TechTransfer 1,233 1,240
Didimo* 1,415 1,415
Seems Possible* 800 800
Reckon.ai* 500 500
MindProber* 500 500
SkillAugment* 300 300
Others 500 531
5,248 5,286


During the financial year ended on 31 December 2022, NOS reinforced its investment in start-up Reckon.ai and invested in
the start-up Didimo, which develops photo-based 3D digital avatars, in the start-up MindProber, which has developed a
pioneering platform capable of measuring the emotional impact that multimedia content has on consumers, and in the
start-up SkillAugment (KIT-AR), which develops solutions using emerging technologies such as augmented reality and
artificial intelligence.
During the quarter ended on 31 March 2023, NOS reinforced its investment on Tech Transfer Fund.




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15. Income tax expense
NOS and its subsidiaries are subject to IRC - Corporate Income Tax - at the rate of 21% on taxable amount (taxable profit
less eventual tax losses subject to deduction), plus IRC surcharge at the maximum rate of 1.5% on taxable profit, giving an
aggregate rate of approximately 22.5%. Additionally, following the introduction of austerity measures approved by Law 66-
B/2012 of 31 December, and respective addendum published by Law 114/2017 of 29 December, this rate was raised by 3%
and will be applied to the company’s taxable profit between 1.5 million euros and 7.5 million euros, by 5% to the company’s
taxable profit which exceeds 7.5 million euros, and by 9% to the company’s taxable profit above 35 million euros.
In the calculation of taxable income, amounts, which are not fiscally allowable, are added to or subtracted from the book
results. These differences between accounting income and taxable income may be of a temporary or permanent nature.

NOS is taxed in accordance with the Special Regime for Taxation of Corporate Groups, which covers the companies in which
it directly or indirectly holds at least 75% of their share capital and which fulfil the requirements of Article 69 of the IRC
Code.

The companies covered by the Special Regime for Taxation of Corporate Groups in 2023 are:
• NOS (parent company)

• Empracine
• Lusomundo Imobiliária

• Lusomundo SII
• NOS Açores
• NOS Audiovisuais

• NOS Audiovisuais SGPS
• NOS Cinemas

• NOS Comunicações
• NOS Inovação
• NOS Internacional SGPS

• NOS Audio – Sales and Distribution
• NOS Madeira

• NOS Mediação de Seguros
• NOS Sistemas
• NOS Technology

• NOS Wholesale
• NOS Corporate Center

• NOS Property
• Per-mar
• Sontária

• Teliz




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Under current legislation, tax declarations are subject to review and correction by tax authorities for a period of four years,
except when tax losses have occurred or tax benefits have been obtained, whose term, in these cases, matches the deadline
to use them. It should be noted that in the event of inspections, appeals, or disputes in progress, these periods might be
extended or suspended.

The Board of Directors of NOS, based on information from its tax advisers, believes that these and any other revisions and
corrections to these tax declarations, as well as other contingencies of a fiscal nature, will not have a significant effect on
the consolidated financial statements as at 31 March 2023.


A) Deferred tax

NOS and its associated companies have reported deferred tax relating to temporary differences between the taxable basis
and the book amounts of assets and liabilities, and tax losses carried forward at the date of the statement of financial
position. The movements in deferred tax assets and liabilities for the quarter ended on 31 March 2022 and 2023 were as
follows:

INCOME
31-12-2021 EQUITY 31-03-2022
(NOTE B)
DEFERRED INCOME TAX ASSETS
Impairment of other receivable 6,531 709 - 7,240
Inventories 2,539 106 - 2,645
Other provision and adjustments 41.645 (201) - 41,444
Intragroup gains 20,892 (34) - 20,858
Liabilities recorded as part of the allocation of
fair value to the liabilities acquired in the 4,968 - - 4,968
merger
Assets recognised under application of IFRS 16 4,739 454 - 5,193
Derivatives 76 (10) (65) 1
81,390 1,024 (65) 82,349
DEFERRED INCOME TAX LIABILITIES
Tax litigation 42,167 939 - 43,106
Revaluations of assets as part of the allocation
of fair value to the assets acquired in the 2,429 (43) - 2,386
merger
Derivatives 116 62 24 202
Others 2,614 19 - 2,633
47,326 977 24 48,327
NET DEFERRED TAX 34,064 47 (89) 34,022




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INCOME
31-12-2022 EQUITY 31-03-2023
(NOTE B)
DEFERRED INCOME TAX ASSETS
Impairment of other receivable 9,288 (805) - 8,483
Inventories 2,579 84 - 2,663
Other provision and adjustments 39.761 (2,503) - 37,258
Intragroup gains 26,851 109 - 26,960
Liabilities recorded as part of the allocation of
fair value to the liabilities acquired in the 4,865 (170) - 4,695
merger
Assets recognised under application of IFRS 16 6,160 1,033 - 7,193
Derivatives 50 8 149 207
89,554 (2,244) 149 87,459
DEFERRED INCOME TAX LIABILITIES
Tax litigation 42,618 235 - 42,853
Revaluations of assets as part of the allocation
of fair value to the assets acquired in the 2,235 (42) - 2,193
merger
Derivatives 2,487 22 (220) 2,289
Others 2,785 (22) - 2,763
50,125 193 (220) 50,098
NET DEFERRED TAX 39,429 (2,437) 369 37,361




At 31 March 2023, the deferred tax assets related to the other provisions and adjustments are mainly due:
• Impairments and acceleration of amortizations beyond the acceptable fiscally and other adjustments in fixed
tangible assets and intangible assets, amounted to 29.7 million euros (31 December 2022: 31.2 million euros);
and
• Other provisions amounted to 7.6 million euros (31 December 2022: 8.6 million euros).
In the quarter ended on 31 March 2023, the item “Tax litigation” includes liabilities, related to ongoing tax processes, of
which highlights:

• Future credits transferred: for the financial year ended at 31 December 2010, NOS SA was notified of the Report
of Tax Inspection, when it is considered that the increase, when calculating the taxable profit for the year 2008,
of the amount of 100 million euros, with respect to initial price of future credits transferred to securitization, is
inappropriate. Given the principle of periodization of taxable income, NOS SA was subsequently notified of the
improper deduction of the amount of 20 million euros in the calculation of taxable income between 2009 and
2013. Given that the increase made in 2008 was not accepted due to not complying with Article 18 of the CIRC,
also in the years following, the deduction corresponding to credits generated in that year, will eliminate the
calculation of taxable income, to meet the annual amortization hired as part of the operation (20 million per year
for 5 years). NOS SA challenged the decisions regarding the 2009 to 2013 fiscal year and will appeal for the judicial
review in due time the decision regarding the 2008 to 2013 fiscal year. Regarding the year 2008, the
Administrative and Fiscal Court of Porto has already decided unfavorably, in March 2014. The company has
appealed.
In March 2021, NOS SA was notified of the dismissal issued by the Court of Appeal. Not accepting the decision,
NOS filed a Review Appeal with the Supreme Administrative Court, pending, in this regard, the issuance of the
respective admissibility order.

In May 2022, NOS was notified of the decision which did not admit the review appeal. An appeal has been filed
against the Constitutional Court with suspensive effects on the transit of that non-admission decision. In addition
to that appeal, an application was lodged in the file for recognition of the invalidity of the decision, for lack of
reasoning. Both expedients are pending consideration and decision.




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• Supplementary Capital: the fiscal authorities believe that NOS SA has broken the principle of full competition
under the terms of (1) of Article 58 of the Corporate Tax Code (CIRC) – currently Article 63 –, by granting
supplementary capital to its subsidiary NOS, without having been remunerated at a market interest rate. In
consequence, it has been notified, with regard to the years 2004, 2005, 2006 and 2007 of corrections to the
determination of its taxable income in the total amount of 20.5 million euros. NOS SA contested the decision with
regard to all the above-mentioned years. As for the year 2004, the Court has decided favorably. This decision is
concluded (favorably), originating a reversal of provisions, in 2016, in the amount of 1.3 million euros plus interest.
As for the years 2006 and 2007, the Porto Fiscal and Administrative Court has already decided unfavorably. As
for the year 2005, the Court decided favorably, having been concretized by the Tax Authorities, which meant the
provision reversal of one million euros, in 2018.
The revaluations of assets refer to the appreciation of telecommunications licenses and other assets at the merger of Group
companies.
At 31 March 2023, deferred tax assets were not recognised for an amount of 0.4 million euros, corresponding mainly to tax
incentives and losses.

Deferred tax assets were recognised when it is probable that taxable profits will occur in future that may be used to absorb
tax losses or deductible tax differences. This assessment was based on the business plans of the Group’s companies, which
are regularly revised and updated.
At 31 March 2023, the tax rate used to calculate the deferred tax assets relating to tax losses carried forward was 21% (2022:
21%). In the case of temporary differences, the rate used was 22.5% (2022: 22.5%) increased to a maximum of 6.3% (2022:
6.3%) of state surcharge when the taxation of temporary differences in the estimated period of application of the state
surcharge was perceived as likely. Tax benefits, related to deductions from taxable income, are considered 100%, and in
some cases, their full acceptance is conditional upon the approval of the authorities that grants such tax benefits.
Under the terms of Article 88 of the IRC Code, the Company is subject to autonomous taxation on a series of charges at the
rates set out in that Article.

With the State Budget for 2023, tax losses will have no time limit for carry forward, but there will be a limitation on their
deduction up to 65% of the taxable profit generated.


B) Effective tax rate reconciliation
In the quarters ended on 31 March 2022 and 2023, the reconciliation between the nominal and effective rates of tax was as
follows:

3M 22 3M 23
Income before taxes 48,020 42,194
Statutory tax rate 22.5% 22.5%
ESTIMATED TAX 10,805 9,494
Permanent differences (1,165) (647)
Tax benefits (1,550) (1,646)
State surcharge 1,675 1,286
Autonomous taxation 137 144
Others (2,959) (1,485)
INCOME TAXES 6,943 7,146
Effective Income tax rate 14.5% 16.9%
Income tax 6,990 4,709
Deferred tax (47) 2,437
6,943 7,146




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At 31 March 2022 and 2023, the permanent differences were composed as follows:

3M 22 3M 23
Equity method (Note 36) (5,307) (2,530)
Others 131 (344)
(5,176) (2,874)
22.5% 22.5%
(1,165) (647)



Additionally, the amount registered as fiscal benefits relates to the register of deferred taxes and the use of tax benefits for
which there was no record of deferred taxes: SIFIDE (Business Research and Development Tax Incentives System), a tax
benefit introduced by Law 40/2005 of 3 August and RFAI (Investment Tax Incentive Regime) introduced by Law 10/2009 of
10 March; and provisions for used tax incentives.



16. Inventories
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
INVENTORIES
Telco 75,818 79,411
Audiovisuals 566 610
76,384 80,021
IMPAIRMENT OF INVENTORIES
Telco (9,161) (9,451)
(9,161) (9,451)
67,223 70,570




The movements occurred in impairment adjustments were as follows:

3M 22 3M 23

AS AT JANUARY 1 8,935 9,161
Increase and decrease - Cost of products sold (Note 33) 486 435
Utilizations / Others (107) (145)
AS AT MARCH 31 9,314 9,451




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17. Accounts receivable – trade
At 31 December 2022 and 31 March 2023, this item was as follows:

31-12-2022 31-03-2023
Trade receivables 444,218 460,461
Unbilled revenues 89,805 77,437
534,023 537,898
Impairment of trade receivable (214,582) (219,698)
319,441 318,200


The amounts to be invoiced correspond mainly to the value of contractual obligations already met or partially met and
whose invoicing will occur subsequently.

The movements occurred in impairment adjustments were as follows:

3M 22 3M 23

AS AT JANUARY 1 197,628 214,582
Increases and decreases (Note 35) 4,597 4,877
Penalties 3,955 4,892
Utilizations / Others (3,860) (4,653)
AS AT MARCH 31 202,320 219,698


Penalties correspond to the invoiced penalties, in the period, for which the full expected credit losses are registered, and
the register was made by deduction from the respective revenue.



18. Contract assets
At 31 March 2023, the contract assets, in the amount of 61.0 million euros (31 December 2022: 60.1 million euros),
correspond to discounts, attributed to customers at the time of the sale of equipment (included in the telecommunications
packages) and which are allocated to monthly fees / services rendered, within the scope of the allocation of credits to
different types of performance obligations, according to IFRS 15. These assets are deferred, at the time of sale of the
equipment, and recognised over the contract period (service rendered).



19. Prepaid expenses
At 31 December 2022 and 31 March 2023, this item was composed as follow:

31-12-2022 31-03-2023

Programming costs i) 21,091 22,403
Costs related to specific corportate projects 10,941 10,919
Costs of litigation procedure activity ii) 5,591 5,927
Repair and maintenance 1,875 2,923
Insurance 1,333 1,557
Advertising 132 153
Others iii) 11,269 16,355
52,232 60,237




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i) Programming costs correspond to costs inherent to the availability of channels, namely fixed fees, billed in
advance. This cost is recognised in the period in which the channel is made available and transmitted, and
recognised as a programming cost, in the Consolidated Income Statement.
ii) Deferred costs related to collection actions correspond to services paid in advance to external entities as part of
the processes for recovering customer debts / collection actions. These costs are recognised as the service is
provided.
iii) “Others” includes deferred costs, mainly related to expenses to be recognised from various supplies and external
services, such as specialized works, maintenance and repair work and others, billed in advance by suppliers
(quarterly or annual billing), the respective expense being recognised in the income statement as the service is
provided. The increase in this item results mainly from expenses paid in advance at the beginning of each year in
respect of the current year.



20. Derivative financial instruments
Interest rate derivatives

At 31 March 2023, NOS have 3 interest rate swaps in a total amount of 180 million euros (31 December 2022: 180 million
euros), with forward start on September 2022.
Exchange rate derivatives
At the date of the statement of the financial position there are foreign currency forwards open worth 44,055 thousand
euros (31 December 2022: 41,147 thousand euros).

31-12-2022
ASSETS LIABILITIES
NOTIONAL NON NON
CURRENT CURRENT
CURRENT CURRENT
Interest rate swaps 180,000 - 10,947 - -
Exchange rate forward 41,147 - 302 397 -
221,147 - 11,249 397 -




31-03-2023
ASSETS LIABILITIES
NOTIONAL NON NON
CURRENT CURRENT
CURRENT CURRENT
Interest rate swaps 180,000 - 9,968 - -
Exchange rate forward 44,055 - 143 712 -
224,055 - 10,111 712 -




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Movements during the quarters ended on 31 March 2022 and 2023 were as follows:


31-12-2021 INCOME EQUITY 31-03-2022

Fair value interest rate swaps (10) - 10 -
Fair value exchange rate forward 313 1 82 396
Fair value equity swaps (218) 319 281 382
DERIVATIVES 85 320 373 778
Deferred income tax liabilities (116) (62) (24) (202)
Deferred income tax assets 76 (10) (65) 1
DEFERRED INCOME TAX (40) (72) (89) (201)
45 248 284 577



31-12-2022 INCOME EQUITY 31-03-2023

Fair value interest rate swaps 10,947 - (979) 9,968
Fair value exchange rate forward (95) 38 (512) (569)
Fair value equity swaps - - - -
DERIVATIVES 10,852 38 (1,491) 9,399
Deferred income tax liabilities (2,487) (22) 220 (2,289)
Deferred income tax assets 50 8 149 207
DEFERRED INCOME TAX (2,437) (14) 369 (2,082)
8,415 24 (1,122) 7,317




21. Cash and cash equivalents
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
Cash 1,017 492
Other deposits - 15,115
Terms deposits i) 14,198 7,514
Cash and cash equivalents 15,215 23,121
Bank overdrafts (Note 24) 7,136 1,860
Cash and cash equivalents
8,079 21,261
for the purposes of the Cash Flow Statement


At 31 December 2022 and 31 March 2023, there are 5.6 million euros recorded in the item "Current deposits" whose use is
restricted, because they are held by the Capital Fund NOS 5G, subscribed by NOS.




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22. Shareholder’s equity
22.1. Share capital
At 31 December 2022 and 31 March 2022, the share capital of NOS was 855,167,890.80 euros. At 31 March 2023, the share
capital is represented by 515,161,380 shares registered book-entry shares, with a nominal value of 1.66 euro each (2022:
1.66 euro each).
The main shareholders as of 31 December 2022 and 31 March 2022 are:

31-12-2022 31-03-2023

NUMBER OF % SHARE NUMBER OF % SHARE
SHARES CAPITAL SHARES CAPITAL
Sonaecom, SGPS, S.A. 134,322,268 26.07% 134,322,268 26.07%
ZOPT, SGPS, SA 134,322,269 26.07% 134,322,269 26.07%
Sonae, SGPS, S.A. 55,524,516 10.78% 55,524,516 10.78%
Mubadala Investment Company 25,758,569 5.00% 25,758,569 5.00%
TOTAL 349,927,622 67.93% 349,927,622 67.93%


According to paragraphs b) and c) of number 1 of article 20º and article 21º of the Portuguese Securities Code, a qualified
shareholding of 26.07% of the share capital and voting rights of NOS, SGPS, S.A. as calculated in the terms of article 20º of
the Portuguese Securities Code, is attributable to the following companies:
• Sonaecom - The aforementioned qualified holding is also attributable to Sonaecom SGPS S.A., and all entities in a
control relationship with Sonaecom, namely SONTEL, BV and SONAE, SGPS, S.A., directly or indirectly controled
by EFANOR INVESTIMENTOS, SGPS, S.A., as a result of the control relationship and shareholders agreement
mentioned. As of November 29th, 2017, EFANOR INVESTIMENTOS, SGPS, S.A., no longer has a controlling
shareholder under the terms and for the purposes of articles 20 and 21 of the Portuguese Securities Code;
• ZOPT - This qualified holding is attributable to the companies Kento Holding Limited (“Kento”), BV, as well as to
Mrs. Isabel dos Santos, being (i) Kento and Unitel International directly and indirectly controlled by Mrs. Isabel dos
Santos; (ii) a ZOPT, a society controled by Kento Holding Limited, Unitel International Holdings, BV.


22.2. Capital issued premium
On 27 August 2013, following the completion of the merger between ZON and Optimus SGPS, the Company's share capital
was increased by 856,404,278 euros, corresponding to the total number of issued shares (206,064,552 shares), based on
the closing market price of 27 August 2013. The capital increase is detailed as follows:
• share capital in the amount of 2,060,646 euros;

• premium for issue of shares in the amount of 854,343,632 euros.
Additionally, the premium for issue of shares was deducted for an amount of 125 thousand euros related to costs with the
respective capital increase.

• The capital issued premium is subject to the same rules as for legal reserves and can only be used:
• To cover part of the losses on the balance of the year that cannot be covered by other reserves;
• To cover part of the losses carried forward from the previous year that cannot be covered by the net income of
the year or by other reserves;

• To increase the share capital.

On 21 April 2022, was approved in the Annual General Meeting of shareholders of NOS SGPS, an increase of share capital,
by incorporation of share premium, in the amount of 850,016,277.00, through the increase of the nominal value of the total
shares representing the share capital in the amount of 1.65€. The nominal value of each share is now 1.66€.

As of 31 March 2023, the amount of share issue premium is 4,202,356 euros (2022: 4,202,356 euros).




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22.3. Own shares
Company law regarding own shares requires the establishment of a non-distributable reserve of an amount equal to the
purchase price of such shares, which becomes frozen until the shares are disposed of or distributed. In addition, the
applicable accounting rules determine that gains or losses on the disposal of own shares are stated in reserves.

At 31 March 2023 there were 3,562,512 own shares, representing 0.6915% of share capital (31 December 2022: 4,008,391
own shares, representing 0.7781% of the share capital).


The movements occurred in the financial quarters ended on 31 March 2022 and 2023 were as follows:

QUANTITY VALUE

BALANCE AS AT 1 JANUARY 2022 3,002,427 12,353
Acquisition of own shares 898,333 3,358
Distribution of own shares - share incentive scheme (781,379) (3,147)
Distribution of own shares - other remunerations (70,908) (286)
BALANCE AS AT 31 MARCH 2022 3,048,473 12,278
BALANCE AS AT 1 JANUARY 2023 4,008,391 15,968
Acquisition of own shares 1,044,138 4,422
Distribution of own shares - share incentive scheme (1,462,391) (5,902)
Distribution of own shares - other remunerations (27,626) (111)
BALANCE AS AT 31 MARCH 2023 3,562,512 14,377




22.4. Reserves
Legal reserve
Company law and NOS Articles of Association establish that at least 5% of the Company’s annual net profit must be used
to build up the legal reserve until it corresponds to 20% of the share capital. This reserve cannot be distributed except in
the event of liquidation of the company, but it may be used to absorb losses after all other reserves have been exhausted,
or for incorporation in the share capital.



Other reserves
Under Portuguese law, the amount of distributable reserves is determined according to the individual financial statements
of the company prepared in accordance with IAS / IFRS. Thus, on 31 March 2023 NOS had reserves, which by their nature
are considered distributable for an amount of approximately 371.4 million euros, not including the net income.




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23. Non-controlling interests
The movements of the non-controlling interests occurred during the quarters ended on 31 March 2022 and 2023 and the
results attributable to non-controlling interests for the year are as follows:



ATTRIBUTABLE
31-12-2021 OTHERS 31-03-2022
PROFITS
NOS Madeira 5,289 6 (3) 5,292
NOS Açores 1,090 (37) (1) 1,052
6,379 (31) (4) 6,344



ATTRIBUTABLE
31-12-2022 OTHERS 31-03-2023
PROFITS
NOS Madeira 5,432 155 (8) 5,579
NOS Açores 819 (22) (2) 795
6,251 133 (10) 6,374




24. Borrowings
At 31 December 2022 and 31 March 2023, the composition of borrowings was as follows:

31-12-2022 31-03-2023

NON- NON-
CURRENT CURRENT
CURRENT CURRENT
LOANS - NOMINAL VALUE 350,136 655,000 339,360 650,000
Debenture loan 300,000 290,000 300,000 290,000
Commercial paper 43,000 365,000 37,500 360,000
Bank overdrafts 7,136 - 1,860 -
LOANS - ACCRUALS AND DEFERRALS 2,832 (541) 3,524 (570)
LOANS - AMORTISED COST 352,968 654,459 342,884 649,430
LEASES 74,485 555,722 81,022 557,867
427,453 1,210,181 423,906 1,207,297


During the financial quarter ended on 31 March 2023, the average cost of debt of the used lines was approximately 2.2%
(2022: 1.2%).
The average global financing cost (used and unused lines) during the quarter ended on 31 March 2023 was approximately
2.3% (2022: 1.3%).
At 31 March 2023 there is no default in terms of capital, interest, conditions for redemption on loans payable or other
commitments.




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24.1. Debenture loans
At 31 March 2023, NOS has a total amount of 590 million euros of bonds issued:
• A bond issue for an amount of 300 million euros in May 2018, whose maturity occurs in May 2023. The issue bears
interest at a fix rate and it is paid annually.

• A bond loan in the amount 50 million euros placed by BPI bank in June 2019 and maturing in June 2024. The loan
bears interest at variable rates, indexed to Euribor and paid semi-annually.
• A bond loan in the amount 50 million euros placed by Caixa Geral de Depósitos in July 2019 and maturing in July
2024. The loan bears interest at variable rates, indexed to Euribor and paid semi-annually.
• A bond loan in the amount 25 million euros placed by Medio Banca in July 2019 and maturing in July 2024. The
loan bears interest at variable rates, indexed to Euribor and paid semi-annually.
• A bond loan in the amount of 15 million euros placed by BPI in July 2021 and maturing in July 2026.The loan bears
interest at a variable rate, indexed to the Euribor and paid on a quarterly basis.
• A bond loan in the amount of 75 million euros placed by Caixa Geral de Depósitos in March 2022 and maturing in
March 2027. The loan bears interest at variable rates, indexed to Euribor and paid semi-annually.

• A bond loan in the amount of 75 million euros placed by BPI in July 2022 and maturing in March 2027. The loan
bears interest at variable rates, indexed to Euribor and paid quarterly.
Additionally, NOS has also contracted two financings, whose bonds will be issued in April 2023:

• Bond loan, of 50 million euros, placed by BPI and maturing in January 2028.
• Bond loan, of 75 million euros, placed by Caixa Geral de Depósitos and maturing in April 2028.

At 31 March 2023, an amount of 3,467 thousand euros, corresponding to interest and commissions, was added to this
amount and recorded in the item “Loans - accruals and deferrals”.



24.2. Commercial paper
At 31 March 2023, the Company has borrowings of 397,5 million euros in the form of commercial paper. The total amount
contracted, under underwriting securities, is of 885 million euros, corresponding to 17 programmes, with 7 banks, 747.5
million euros of which bear interest at market rates and 137.5 million euros are issued in fixed rate. Commercial paper
programmes with maturities over one-year totaling 885 million euros (of which 397,5 million euros have been used as of 31
March 2023), since the Company can renew unilaterally current issues on or before the programmes’ maturity dates and
because they are underwritten by the organizer. As such, this amount, although having a current maturity, it was classified
as non-current for presentation purposes in the financial position statement.
At 31 March 2023 an amount of 513 thousand euros, corresponding to interest and commissions, was deducted to this
amount, and recorded in the item “Loans - accruals and deferrals”.




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24.3. Leases
At 31 December 2022 and 31 March 2023, the leases refer mainly to rental agreements for telecommunications towers,
movie theaters, equipment, shops and vehicles, exclusive acquisition of satellite capacity and rights to use distribution
network capacity.

Leases – payments

31-12-2022 31-03-2023
Until 1 year 120,515 110,067
Between 1 and 5 years 305,011 315,254
Over 5 years 420,531 411,303
846,057 836,624
Future financial costs (lease) (215,850) (197,735)
PRESENT VALUE OF LEASE LIABILITIES 630,207 638,889




Leases – present value

31-12-2021 31-03-2023
Until 1 year 74,485 81,022
Between 1 and 5 years 214,269 223,107
Over 5 years 341,453 334,760
630,207 638,889




The maturities of the loans obtained are as follows:

31-12-2022 31-03-2023
BETWEEN 1 OVER 5 BETWEEN 1 OVER 5
UNTIL 1 YEAR UNTIL 1 YEAR
AND 5 YEARS YEARS AND 5 YEARS YEARS
Debenture loan 302,944 289,466 - 303,912 289,555 -
Commercial paper 42,888 364,993 - 37,112 359,875 -
Bank overdrafts 7,136 - - 1,860 - -
Leases 74,485 214,269 341,453 81,022 223,107 334,760
427,453 868,728 341,453 423,906 872,537 334,760




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25. Provisions
At 31 December 2022 and 31 March 2023, the provisions were as follows:

31-12-2022 31-03-2023

Litigation and other - i) 32,158 31,628
Dismantling and removal of assets - ii) 22,294 22,581
Contingent liabilities - iii) 22,908 22,908
Contingencies - other - iv) 3,907 3,758
81,267 80,875




i) At 31 March 2023, the amount under the item "Litigation and other" corresponds to provisions to cover the legal
and others claims in-progress.
ii) The amount under the item "Dismantling and removal of assets "refers to the estimated future costs discounted
to the present value, related with the termination of the use of the space where there are telecommunication
towers and cinemas;
iii) The amount in the item "Contingent liabilities" refers to several provisions recorded for present but not likely
obligations, related to the merger by incorporation of Optimus SGPS, namely:
a. Extraordinary contribution toward the fund for the compensation of the net costs of the universal service of
electronic communications (CLSU): The Extraordinary contribution toward the fund for the compensation of
the net costs of the universal service of electronic communications (CLSU) is legislated in Articles 17 to 22
of Law no 35/2012, of 23 August. From 1995 until June 2014, MEO, SA (former PTC) was the sole provider
for the universal service of electronic communications, having been designated administratively by the
government, i.e. without a formal contest procedure led by the government for that effect, which
constitutes an illegality, by the way acknowledged by the European Court of Justice who, through its
decision taken in June 2014, condemned the Portuguese State to pay a fine of 3 million euros for illegally
designating MEO. In accordance with Article 18 of the abovementioned Law 35/2012, of 23 August, the net
costs incurred by the operator responsible for providing the universal service, approved by ANACOM, must
be shared between other companies who provide, in national territory public communication networks and
publicly accessible electronic communications services. NOS is therefore within the scope of this
extraordinary contribution given that MEO has being requesting the payment of CLSU to the compensation
fund of the several periods during which it was responsible for providing the services. In accordance with
law, the compensation fund can be activated to compensate the net costs of the electronic communications
universal service, relative to the period before the designation of the provider by tender, whenever,
cumulatively (i) there are net costs, considered excessive, the amount of which is approved by ANACOM,
following an audit to their preliminary calculation and support documents, which are provided by the
universal service provider, and (ii) the universal service provider requester the Government
compensation for the net costs approved under the terms previously mentioned.

Therefore:
- In 2013, ANACOM deliberated to approve the final results of the CLSU audit presented by MEO, relative to
the period from 2007 to 2009, in a total amount of 66.8 million euros, a decision that was contested by the
Company. In January 2015, ANACOM issued the settlement notes in the amount of 18.6 million euros related
to NOS, SA, NOS Madeira and NOS Açores which were contested by NOS and for which a bail was presented
by NOS SGPS (Note 44) to avoid Tax Execution Proceedings. The guarantees have been accepted by
ANACOM.

- In 2014, ANACOM deliberated to approve the final results of the CLSU audit by MEO, relative to the period
from 2010 to 2011, in a total amount of 47.1 million euros, a decision also contested by NOS. In February
2016, ANACOM issued the settlement notes in the amount of 13 million euros, related to NOS, SA, NOS
Madeira and NOS Açores which were also contested and for which it was before also presented bail by NOS




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SGPS in order to avoid the promotion of respective tax enforcement processes. The guarantees that have
been accepted by ANACOM.
- In 2015, ANACOM deliberated to approve the final results of the audit to CLSU presented by MEO relative
to the period from 2012 to 2013, in the amount of 26 million euros and 20 million euros, respectively, and as
the others, it was contested by NOS. In December 2016, the notices of settlement were issued relating to
NOS, SA, NOS Madeira and NOS Açores, corresponding to that period, in the amount of 13.6 million euros
which were contested by NOS and for which guarantees have been already presented by NOS SGPS in order
to avoid the promotion of the respective proceedings of tax execution. The guarantees were also accepted
by ANACOM.

- In 2016, ANACOM approved the results of the audit to the CLSU presented by MEO related with the period
between January and June 2014, for an amount of 7.7 million euros that was contested by NOS, in standard
terms.
- In 2017, NOS, SA, NOS Madeira and NOS Açores were notified of the decision of ANACOM concerning the
entities that are obliged to contribute toward the compensation fund and the setting of the values of
contributions corresponding to CLSU that must be compensated and relating to the months of 2014 in which
MEO still remained as provider of the Universal Service, which establishes for all these companies a
contribution around 2.4 million euros. In December 2017, the settlement notes relating to NOS, SA, NOS
Madeira and NOS Açores, concerning that period, were issued in the amount of approximately 2.4 million
euros, which were challenged by NOS and for which guarantees have also been presented by NOS SGPS, in
order to avoid the promotion of their tax enforcement procedures. The guarantees were also accepted by
ANACOM.
It is the opinion of the Board of Directors of NOS that these extraordinary contributions to Universal Service
(not designated through a tender procedure) flagrantly violate the Directive of Universal Service. Moreover,
considering the existing legal framework since NOS began its activity, the request of payment of the
extraordinary contribution violates the principle of the protection of confidence, recognised on a legal and
constitutional level in Portuguese domestic law. For these reasons, NOS has judicially challenged either the
approval of audit results of the universal service net cost related with the pre-contest period as well as the
liquidation of each and every extraordinary contributions that may be required. In September 2021, the
Lisbon Administrative Circle Court ruled as unfounded the action regarding the administrative challenge of
the results of the CLSU 2007-2009 audit, which NOS appealed in October 2021. The Board of Directors is
convinced it will be successful in both challenges and appeals undertaken;


iv) The amount under the caption "Contingencies - other" refers to provisions for risks related to miscellaneous
events/disputes of various kinds, the settlement of which may result in outflows of cash, and other likely liabilities
related to several transactions from previous periods, and whose outflow of cash is probable, namely, costs
charged to the current period or previous years, for which it is not possible to estimate reliably the time of
occurrence of the expense.


During the quarter ended on 31 March 2022, movements in provisions were as follows:

31-12-2021 INCREASES DECREASES OTHERS 31-03-2022

Litigation and other 32,468 563 (2,332) - 30,699
Financial investments 1,075 - - - 1,075
Dismantling and removal of assets 22,326 116 - - 22,442
Contingent liabilities 23,707 - - - 23,707
Contingencies - other 2,940 942 - (1,031) 2,851
82,516 1,621 (2,332) (1,031) 80,774




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During the quarter ended on 31 March 2023, movements in provisions, were as follows:

31-12-2022 INCREASES DECREASES OTHERS 31-03-2023

Litigation and other 32,158 1,115 (1,645) - 31,628
Financial investments - - - - -
Dismantling and removal of assets 22,294 287 - - 22,581
Contingent liabilities 22,908 - - - 22,908
Contingencies - other 3,907 363 - (512) 3,758
81,267 1,765 (1,645) (512) 80,875


During the quarters ended on 31 March 2022 and 2023, the increases refer mainly to compensation to employees, provisions
for legal and other claims plus interests and charges, and the decreases refer mainly to the reassessment and prescription
of several legal contingencies.
The movements recorded in “Others”, under the heading “Contingencies - other” correspond, predominantly, to
compensations to employees.

The net movements for the financial year ended on 31 March 2022 and 2023 reflected in the income statement under
Provisions were as follows:

3M 22 3M 23

Provisions and adjustments (Note 35) 118 (708)
Other losses / (gains) non-recurrent (Note 38) 934 363
Interests - dismantling 116 287
Other (1,879) 178
INCREASES AND DECREASES IN PROVISIONS (711) 120




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26. Accrued expenses
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
CURRENT
Invoices to be issued by operators i) 39,314 39,234
Investments in tangible and intangible assets 40,116 35,705
Costs related to specific projects of business customers 30,494 25,369
Vacation pay and bonuses 24,320 24,989
Professional services 16,306 19,834
Advertising 15,084 15,359
Content and film rights 13,205 11,737
Programming services 11,779 9,149
Taxes (ANACOM and Cinema Law) ii) - 8,421
Comissions 5,198 6,480
Energy and water 5,495 5,969
Costs of litigation procedure activity 4,033 4,160
Maintenance and repair 1,699 2,774
Other accrued expenses 5,387 3,487
212,430 212,667


i. Invoices to be issued by operators correspond predominantly to interconnection costs for international traffic and
for the use of roaming services not yet billed.

ii. Amounts relating to ANACOM licences and other ICA fees, the invoicing of which is issued annually in subsequent
periods.



27. Deferred income
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
CURRENT NON-CURRENT CURRENT NON-CURRENT
Advanced billing i) 37,844 - 40,585 -
Investment subsidy ii) 346 2,824 330 2,753
38,190 2,824 40,915 2,753




i) This item relates mainly to the billing of Pay TV services regarding the following month to the report period and
amounts received from NOS Comunicações, SA customers, related with the recharges of mobile phones and
purchase of telecommunications minutes yet unused.

ii) This item is related mainly to the deferral of income related to the implicit subsidy calculated with the obtaining
of a loan, in the meantime fully repaid, from EIB, at interest rates below market values.




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28. Accounts payable - trade
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023
Suppliers current account 252,195 266,972
Invoices in reception and conference 1,160 1,921
253,355 268,893




29. Accounts payable - other
At 31 December 2022 and 31 March 2023, this item was composed as follows:

31-12-2022 31-03-2023

NON-CURRENT
Contractual rights 42,128 41,691
42,128 41,691
CURRENT
Fixed assets suppliers 47,437 26,978
Contractual rights 1,934 2,130
Advances from customers 191 170
Others 4,227 4,616
53,789 33,894
95,917 75,585




The caption Contractual Rights refers to the liability to be settled over 20 years, related with the contractual right acquired
with the agreement celebrated between NOS Comunicações, S.A., NOS Technology S.A., and Vodafone Portugal,
Comunicações Pessoais, S.A with the aim of sharing mobile support network infrastructures (passive infrastructure such as
towers and masts) and active mobile network (active radio equipment such as antennas, amplifiers and other equipment),
as disclosed to the market on 22 October 2020.




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30. Operating revenues
Consolidated operating revenues, for the quarters ended on 31 March 2022 and 2023, were as follows:

3M 22 3M 23
SERVICES RENDERED:
Communications service revenues i) 312,357 328,407
Revenue distribution and cinematographic exhibition ii) 5,203 9,070
Advertising revenue iii) 4,173 4,441
Production and distribution of content and channels iv) 5,508 5,426
Others 729 1,992
327,970 349,336
SALES:
Telco v) 35,967 22,303
Audiovisuals and cinema exhibition vi) 1,958 3,107
37,925 25,410
OTHER OPERATING REVENUES:
Telco 7,343 6,638
Audiovisuals and cinema exhibition 129 20
7,472 6,658
373,367 381,404




These operating revenues are shown net of inter-company eliminations.
i) This item mainly includes revenue relating to: (a) basic channel subscription packages that can be sold in a bundle
with fixed broadband/fixed voice services; (b) premium channel subscription packages and S-VOD; (c) terminal
equipment rental; (d) consumption of content (VOD); (e) traffic and mobile and fixed voice termination; (f) service
activation; (g) mobile broadband access; and (h) other additional services (ex: firewall, antivirus) and services
rendered related to datacenter management and consulting services in IT.
ii) This item mainly includes (a) box office revenue at the NOS Cinemas, and (b) revenue relating to film distribution
to other cinema exhibitors in Portugal.

iii) This item includes advertising revenues on television channels and NOS cinemas.
iv) This item includes revenues related to production of audiovisual content, thought the compilation of acquired
contents, and distribution of channels, essentially TVCines.

v) Revenue relating to the sale of terminal equipment, telephones, and mobile phones.
vi) This item mainly includes sales of bar products by NOS Cinemas and DVD sales.
This item includes earned income related with non-compliances and contractual penalties, as well as other supplementary
income of diverse natures.




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31. Wages and salaries
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23
Remuneration 15,292 16,685
Social taxes 4,186 4,498
Social benefits 495 488
Other 319 296
20,292 21,967




In the quarters ended on 31 March 2022 and 2023, the average number of employees of the companies included in the
consolidation was 2,289 and 2,423, respectively. At 31 March 2023, the number of employees of the companies included in
the consolidation was 2,425 employees.
The costs of compensations paid to employees, since they are non-recurring costs, are recorded in the item “Restructuring
costs” (Note 38).



32. Direct Costs
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23
Exhibition costs 45,107 45,190
Traffic costs 15,780 16,800
Costs related to corporate customers services 12,425 11,727
Capacity costs 4,299 4,990
Shared advertising revenues 2,910 2,892
80,521 81,599




33. Cost of products sold
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23

Costs of products sold 34,587 21,345
Increases / (decreases) in inventories impairments (Note 16) 486 435
35,073 21,780




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34. Support services and supplies and external services
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23
SUPPORT SERVICES:
Administrative support and others 8,438 9,705
Call centers and customer support 8,492 9,409
Information systems 3,700 4,919
20,630 24,033
SUPPLIES AND EXTERNAL SERVICES:
Maintenance and repair 11,783 12,432
Leasing of ducts and poles 7,145 6,431
Electricity 6,919 4,713
Professional services 2,691 2,195
Installation and removal of terminal equipment 1,347 1,341
Travel and accommodation 442 893
Communications 981 723
Other supplies and external services 6,865 7,056
38,173 35,784


During the quarter ended on 31 March 2022, given the application of IFRS 16, (practical expedient to consider the changes /
concessions related to COVID-19 as not being a modification to the lease) discounts from rents were recognised, on the
item “Other Supplies and external services”, in the amount of approximately 1.5 million euros.



35. Provisions and adjustments
In the quarters ended on 31 March 2022 and 2023, these items were composed as follows:

3M 22 3M 23

Provisions (Note 25) 118 (708)
Impairment of account receivables - trade (Note 17) 4,597 4,877
Impairment of account receivables - others (Note 12) 127 39
Others (1) 4
4,841 4,212




36. Losses / (gains) of affiliated companies, net
In quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23
EQUITY METHOD (NOTE 11)
Dreamia (109) (2)
Finstar (5,217) (2,521)
Mstar (200) 366
Upstar (5) (370)
Others 224 (3)
(5,307) (2,530)




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37. Depreciation, amortization and impairment losses
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23
TANGIBLE ASSETS
Buildings and other constructions 2,860 4,097
Basic equipment 42,431 44,812
Tools and dies 16 14
Administrative equipment 1,053 987
Other tangible assets 89 215
46,449 50,125
INTANGIBLE ASSETS
Industrial property and other rights 24,486 27,461
24,486 27,461
CONTRACT COSTS
Contract costs 24,483 24,456
24,483 24,456
RIGHTS OF USE
Rights of use 14,983 18,360
14,983 18,360
INVESTIMENT PROPERTY
Investment property 4 3
4 3
110,405 120,405




38. Restructuring Costs
In the quarters ended on 31 March 2022 and 2023, this item was composed as follows:

3M 22 3M 23

Personnel compensation (Note 25) 934 363
Personnel costs related to non-recurrent projects 72 (4)
1,006 359




39. Other losses / (gains) non-recurrent, net
In the quarters ended on 31 March 2022 and 2023, the other non-recurring costs / (gains) was composed as follows:

3M 22 3M 23
GAINS:
Legal Processes 6,134 -
6,134 -
COSTS:
Others 2,416 218
2,416 218
TOTAL (3,718) 218


In the quarter ended on 31 March 2023, an income/receivable of 6.1 million euros was estimated resulting from favorable
decisions in proceedings initiated by the company.




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40. Financing costs and other financials expenses / (income), net
In the quarters ended on 31 March 2022 and 2023, financing costs and other financial expenses / (income) were composed
as follows:

3M 22 3M 23

FINANCING COSTS:
INTEREST EXPENSE:
Borrowings 2,360 4,885
Finance leases 6,208 7,428
Derivatives 16 50
Others 481 829
9,065 13,192
INTEREST EARNED (927) (1,312)
8,138 11,880
NET OTHER FINANCIAL EXPENSES / (INCOME):
Comissions and guarantees 861 804
Others (75) 169
786 973




Interest earned mainly corresponds to default interests charged to customers.



41. Net earnings per share
Earnings per share for the quarters ended on 31 March 2022 and 2023 were calculated as follow:

3M 22 3M 23

Consolidated net income attributable to shareholders 41,108 34,915
Number of ordinary shares outstanding during the period (weighted average) 512,143,093 511,308,637
Basic earnings per share - euros 0.08 0.07
Diluted earnings per share - euros 0.08 0.07


In the above periods, there were no diluting effects on net earnings per share, so the diluted earnings per share are equal
to the basic earnings per share.




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42. Guarantees and financial undertakings
42.1. Guarantees
At 31 December 2022 and 31 March 2023, the Group presents guarantees in favour of third parties corresponding to the
following situations:

31-12-2022 31-03-2023
Tax authorities i) 33,155 35,882
Others ii) 13,757 14,588
46,912 50,470


i) At 31 December 2022 and 31 March 2023, this amount relates to guarantees demanded by the tax authorities in
connection with tax proceedings contested by the Company and its subsidiaries (Note 44).
ii) At 31 December 2022 and 31 March 2023, this amount mainly relates to guarantees provided in connection with
Municipal Wayleave Tax proceedings and guarantees provided to cinema owners, and bank guarantees given to
providers of satellite capacity renting services.
In connection with the finance obtained by Upstar from Banco Comercial Português, totalling 10 million euros, NOS signed
a promissory note, proportional to the participation held, of 30% of the loan.
During the first quarterly of 2015, 2016, 2017 and 2018, and following the settlement notes to CLSU 2007-2009, 2010-2011,
2012-2013 and 2014, respectively, NOS constituted guarantees in favour of the Universal Service Compensation Fund in
the amount of 23.6 million euros, 16.7 million euros, 17.5 million euros and 3.0 million euros, respectively, in order to prevent
the introduction of tax enforcement proceedings in order to enforce recovery of the amounts paid.

In addition to the guarantees required by the tax authorities, sureties were set up for the current fiscal processes, which
NOS was a surety for NOS SA for an amount of 14.6 million euros.



42.2. Other undertakings
Covenants

From the loans obtained (excluding financial leases), besides being subject to the Group's compliance with its obligations
(operational, legal and fiscal) 100% of them are subject to Cross default and Pari Passu, 97% are subjecte to Negative Pledge
clauses and 77% are subject to Ownership clauses.
Additionally, about 16% of total borrowings require that the consolidated net financial debt does not exceed 3 times EBITDA
after payment of consolidated leases, about 43% require that the consolidated net financial debt does not exceed 3.5 times
EBITDA after payment of consolidated leases, about 5% require that the consolidated net financial debt does not exceed 4
times EBITDA after payment of consolidated leases and about 8% require that the consolidated net financial debt does not
exceed 5 times EBITDA after payment of consolidated leases.

Net Financial Debt = Loans - Leasings - Cash and Cash Equivalents
EBITDA = Operating profit + Depreciation, amortisation and impairment losses + Restructuring costs + Losses / (gains) on
disposal of assets + Other non-recurrent costs / (gains)

EBITDA after lease payments = EBITDA - lease payments (principal and interest)
Assignment agreements football broadcast rights
In December 2015, NOS signed a contract with Sport Lisboa e Benfica - Futebol SAD and Benfica TV, SA of television rights
of home matches of football NOS’ league, broadcasting rights and distribution of Benfica TV Channel. The contract began
in 2016/2017 sports season, had an initial duration of three years, and might be renewed by decision of either party up to a
total of 10 sports seasons, with the overall financial consideration reaching the amount of 400 million euros, divided into
progressive annual amounts.




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Also in December 2015, NOS signed a contract with Sporting Clube de Portugal - Futebol SAD and Sporting and
Communication Platforms, S.A. for the assignment of the following rights:

1) TV broadcasting rights and multimedia home games of Sporting SAD;
2) The right to explore the static and virtual advertising at Stadium José Alvalade;

3) The right of transmission and distribution of Sporting TV Channel;

4) The right to be its main sponsor.
The contract will last 10 seasons, concerning the rights indicated in 1) and 2) above, starting in July 2018, 12 seasons in the
case of the rights stated in 3) starting in July 2017 and 12 and a half seasons in the case of the rights mentioned in 4)
beginning in January 2016, with the overall financial consideration amounting to 446 million euros, divided into progressive
annual amounts.
Also in December 2015, NOS SA has signed contracts regarding the television rights of home senior team football games
with the following sports clubs:

1) Associação Académica de Coimbra – Organismo Autónomo de Futebol, SDUQ, Lda
2) Os Belenenses Sociedade Desportiva Futebol, SAD

3) Clube Desportivo Nacional Futebol, SAD

4) Futebol Clube de Arouca – Futebol, SDUQ, Lda
5) Futebol Clube de Paços de Ferreira, SDUQ, Lda

6) Marítimo da Madeira Futebol, SAD
7) Sporting Clube de Braga – Futebol, SAD

8) Vitória Futebol Clube, SAD
The contracts began in the 2019/2020 sports season and last up to 7 seasons, apart from the contract with Sporting Clube
de Braga - Futebol, SAD which lasts 9 seasons.
In May 2016, NOS and Vodafone have agreed on reciprocal availability, for several sports seasons, of sports content
(national and international) owned by the companies, in order to assure to both companies, directly by the assigning party
or indirectly through the transfer to third party content distribution channels or models, the availability of broadcasting
rights of the sports clubs home football games, as well as the broadcasting and distribution rights of sports and sports clubs
channels, whose rights are owned by each of the companies in each moment. The agreement came into force from the
beginning of the sports season 16/17, assuring access to Benfica’s channel and Benfica’s home football games to NOS’ and
Vodafone’s clients, independent from the channel where these football games are broadcast.

Considering that the contract signed allowed for the possibility of extending the agreement to the other operators, in July
2016 MEO and Cabovisão joined the agreement, ending the lack of availability of Porto Canal in the NOS’s channel grid,
assuring that every Pay TV client can have access to every relevant sports content, regardless of which operator they use.
Following the agreement signed with the remaining operators, which is being made directly in some cases and through
channel yield to third parties in others, as a counterpart of the reciprocal provision of rights, the global costs are shared
according with retailer telecommunications revenues and Pay TV market shares.


The estimated cash flows are estimated as follows:

Seasons 2022/23 Following

Estimated cash-flows with the contract signed by NOS with the sports entities* 113.6 M€ 498.3 M€
NOS estimated cash-flows for the contracts signed by NOS (net amounts charged to
58.9 M€ 264.4 M€
the operators) and for the contracts signed by the remaining operators
* Includes direct broadcasts of games and channels, advertising and others.




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Considering that, following the celebrated agreements with the remaining operators, the risks and benefits associated to
contracts with teams are shared amongst the operators, the agreement was considered a collaborative agreement. For this
reason, the revenue (with operators) is compensated with the expenses with teams.
Network sharing contract with Vodafone

NOS and Vodafone Portugal celebrated on 29 September 2017 an agreement of infrastructure development and sharing
with a nationwide scope. This partnership allows the two Operators providing their commercial offers under a shared
network at the beginning of 2018.
The agreement covers the reciprocal sharing of dark fibre in approximately 2.6 million of homes in which each of the entities
shares with the other one an equivalent investment value, in other words, they share similar goods. It is assumed that both
companies retain full autonomy, independence, and confidentiality concerning the design of the commercial offers, the
management of the customers’ database and the choice of technological solutions they might decide to implement, that
did not originate any impact on the consolidated financial statements (according to IAS 16, this exchange of similar non-
monetary assets will be presented on a net basis).
The partnership has also been extended to mobile infrastructure sharing where it is agreed a minimum sharing of 200 mobile
towers.

Celebrated agreements regarding the sharing of mobile network support infrastructure
On 22 October 2020, NOS Comunicações S.A. and NOS Technology, on the one hand, and Vodafone Portugal,
Comunicações Pessoais, S.A., on the other hand, celebrated a set of agreements regarding the sharing of mobile network
support infrastructure (passive infrastructures such as towers and poles) and activemobile network elements (active radio
equipment such as antennas, amplifiers and remaining equipment).These agreements have the following characteristics:
a) the agreements have a nationwide scope with diverse geographical application according to the higher or lower level of
population density. In higher density geographies, typically larger urban areas, the parties will pursue synergies by sharing
support infrastructure. In lower density areas, typically rural and interior locations, in addition to shared use of support
infrastructure, the parties will also share active mobile network.

b) the agreements focus on assets currently held, or that may be held by each party in the future, and on existing 2G, 3G
and 4G technology. Incorporation of 5G technology in these agreements will depend on each to deploy this technology.
c) the agreements do not encompass spectrum sharing between the operators and each party will maintain exclusive
strategic control of its networks, thus ensuring full competitive, strategic and commercial independence and the ability to
differentiate in terms of customer service and provision.

Each party retains the ability to develop its mobile communications network independently.
These agreements will enable NOS to invest more efficiently by capturing value through synergies. NOS will also be able to
deploy its mobile network faster and in a more environmentally responsible way, thus benefitting customers and remaining
stakeholders.
Sharing of mobile infrastructure represents an important contribution towards greater geographical cohesion and digital
inclusion, both of which are essential to the sustainable development of the country.




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43. Related parties
43.1. Balances and transactions between related parties
Transactions and balances between NOS and companies of the NOS Group were eliminated in the consolidation process
and are not subject to disclosure in this note.
The balances at 31 December 2022 and 31 March 2023 and transactions in the quarters ended on 31 March 2022 and 2023
between NOS Group and its associated companies, joint ventures and other related parties are as follows:

Balances at 31 December 2022
Balances at 31 December 2022
ACCOUNTS ACCOUNTS
RECEIVABLES PAYABLE AND
BORROWINGS
AND PREPAID DEFERRED
EXPENSES INCOME
ASSOCIATED COMPANIES 26,212 12,775 -
Big Picture 2 Films 5 67 -
Sport TV 26,207 12,708 -
JOINTLY CONTROLLED COMPANIES 14,224 1,116 3,082
Dreamia SA 2,409 410 -
Dreamia Servicios de Televisión, S.L. 102 - 3,082
Finstar 11,261 73 -
Upstar 299 142 -
ZAP Media 142 - -
MSTAR 11 - -
DUALGRID - - -
OTHER RELATED PARTIES 10,253 3,506 -
Banco BIC Português, S.A. 199 - -
Cascaishopping- Centro Comercial, S.A. 75 152 -
Centro Colombo- Centro Comercial, S.A. 296 522 -
Centro Vasco da Gama-Centro Comercial,SA 699 819 -
Maiashopping- Centro Comercial, S.A. 76 102 -
MC Shared Services, S.A. 1,667 - -
Modelo Continente Hipermercados,SA 1,577 38 -
Norteshopping-Centro Comercial, S.A. 351 360 -
SC-Consultadoria,SA 341 - -
Sierra Portugal, SA 299 131 -
Universo, IME, S.A. 110 - -
Worten-Equipamento para o Lar,SA 3,318 1,275 -
Other related parties 1,245 107 -
50,689 17,397 3,082




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Transactions in the quarter ended on 31 March 2022
31-03-2022
SUPPLIES AND
SERVICES INTEREST
EXTERNAL
RENDERED GAINS
SERVICES
ASSOCIATED COMPANIES 20,264 20,345 -
Big Picture 2 Films 17 867 -
Sport TV(1) 20,247 19,478 -
JOINTLY CONTROLLED COMPANIES 3,024 45 23
Finstar 1,963 - -
Upstar 63 32 -
Dreamia Holding BV - - 24
Dreamia SA 998 (40) (1)
DUALGRID - 53 -
OTHER RELATED PARTIES 6,432 3,758 -
Banco Bic Português, S.A. 466 - -
Cascaishopping- Centro Comercial, S.A. 3 162 -
Centro Colombo- Centro Comercial, S.A. 5 353 -
Continente Hipermercados, S.A. 120 10 -
MDS Corretor de Seguros, SA(2) 336 - -
Modalfa-Comércio e Serviços,SA 298 - -
Modelo Continente Hipermercados,SA 1,318 45 -
Norteshopping-Centro Comercial, S.A. 3 414 -
Olivedesportos- Publicidade Televisão e Media SA(3) 4 1,075
S21SEC Portug-Cyber Security Services,SA(4) 15 784 -
SC-Consultadoria,SA 217 - -
Sierra Portugal, SA 556 32 -
Sonae MC – Serviços Partilhados, SA 672 - -
Worten-Equipamento para o Lar,SA 1,280 182 -
Other related parties 1,138 700 -
29,720 24,148 23




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Balances at 31 March 2023
Balances at 31 March 2023
ACCOUNTS
ACCOUNTS
PAYABLE AND
RECEIVABLES AND BORROWINGS
DEFERRED
PREPAID EXPENSES
INCOME
ASSOCIATED COMPANIES 29,932 12,816 -
Big Picture 2 Films 6 167 -
Sport TV 29,926 12,649 -
JOINTLY CONTROLLED COMPANIES 14,618 1,404 3,173
Dreamia SA 1,375 793 -
Dreamia Servicios de Televisión, S.L. 34 - 3,173
Finstar 12,757 (64) -
Upstar 299 445 -
ZAP Media 142 142 -
MSTAR 11 - -
DUALGRID - 88 -
OTHER RELATED PARTIES 7,270 4,104 -
Banco Bic Português, S.A. 208 - -
Cascaishopping Centro Comercial, SA 460 389 -
Centro Colombo Centro Comercial, SA 413 834 -
Centro Vasco da Gama Centro Comercial,SA 364 500 -
Continente Hipermercados, SA 102 1 -
Fashion Division, S.A. 128 - -
Gaiashopping I Centro Comercial, SA 67 153 -
Modelo Continente Hipermercados, SA 1,106 53 -
Norteshopping Centro Comercial, SA 451 726 -
SC - Sociedade de Consultoria, SA 245 - -
SFS - Financial Services, IME, S.A. 113 - -
SFS, Gestão e Consultoria, S.A. 3 104 -
Sierra Portugal, SA 313 16 -
Sonae MC - Serviços Partilhados, SA 319 - -
Worten - Equipamento para o Lar, SA 1,984 1,309 -
Other related parties 994 19 -
51,820 18,324 3,173




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Transactions in the quarter ended on 31 March 2023
31-03-2023
SUPPLIES AND
SERVICES
EXTERNAL INTEREST GAINS
RENDERED
SERVICES
ASSOCIATED COMPANIES 16,459 15,974 -
Big Picture 2 Films 4 232 -
Sport TV 16,455 15,742 -
JOINTLY CONTROLLED COMPANIES 3,300 68 23
Dreamia Servicios de Televisión, S.L. - - 23
Dreamia SA 1,148 (36) -
Finstar 2,147 - -
Upstar 5 32 -
DUALGRID - 72 -
OTHER RELATED PARTIES 7,522 2,205 -
Banco Bic Português, S.A. 460 - -
Cascaishopping Centro Comercial, SA 3 292 -
Centro Colombo Centro Comercial, SA 5 356 -
Centro Vasco da Gama Centro Comercial,SA 3 192 -
Continente Hipermercados, SA 128 12 -
Fashion Division, S.A. 172 - -
Gaiashopping I Centro Comercial, SA 3 113 -
Modalfa - Comércio e Serviços, SA 257 - -
Modelo Continente Hipermercados, SA 1,433 36 -
Norteshopping Centro Comercial, SA 3 427 -
Pharmacontinente - Saúde e Higiene, SA 107 - -
SC - Sociedade de Consultoria, SA 200 - -
SFS - Financial Services, IME, S.A. 149 - -
SFS, Gestão e Consultoria, S.A. 5 116 -
Sierra Portugal, SA 391 34 -
Solinca Classic, S.A. 101 - -
Sonae MC - Serviços Partilhados, SA 1,555 1 -
Worten - Equipamento para o Lar, SA 1,709 246 -
Other related parties 838 380 -
27,281 18,247 23

(1) In the quarters ended on 31 March 2022 and 2023, the amount related to Sales and Services Rendered includes
about 16 million euros (31 March 2022: 20 million euros), which are not recorded in the consolidated accounts under Sales
and Services Rendered, since it is related to the agreement celebrated with the operators, which configures a sharing of
costs and benefits, therefore the compensation of the revenue is made with the expenses with the clubs (Note 42.2).

(2) Company ceased to be a related party in December 2022.

(3) Company ceased to be a related party in April 2022.

(4) Company ceased to be a related party in December 2022.



The Company regularly performs transactions and signs contracts with several parties within the NOS Group. Such
transactions were performed on normal market terms for similar transactions, as part of the contracting companies' current
activity.
Due to the large number of low value related parties’ balances and transactions, it was grouped in the heading "Other related
parties" the balances and transactions with entities whose amounts are less than 100 thousand euros.




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44. Legal actions and contingent assets and liabilities
44.1. Legal actions with regulators and Competition Authority (AdC)
• NOS SA, NOS Açores and NOS Madeira brought actions for judicial review of ANACOM’s decisions in respect of the
payment of the Annual Fee of Activity (for 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020
and 2021) as Electronic Communications Services Networks Supplier, and furthermore the refund of the amounts
that meanwhile were paid within the scope of the mentioned acts of settlement was requested. Also NOS
Wholesale brought action for judicial review of ANACOM’s decision in respect of payment of the Annual Fee of
Activity for 2020 and 2021.
The settlement amounts are, respectively, as follows:

• NOS SA: 2009: 1,861 thousand euros, 2010: 3,808 thousand euros, 2011: 6,049 thousand euros, 2012:
6,283 thousand euros, 2013: 7,270 thousand euros, 2014: 7,426 thousand euros, 2015: 7,253 thousand
euros, 2016: 8,242 thousand euros, 2017: 9,099 thousand euros, 2018: 10,303 thousand euros, 2019:
10,169 thousand euros; 2020: 10,184 thousand euros and 2021: 9,653 thousand euros.
• NOS Açores: 2009: 29 thousand euros, 2010: 60 thousand euros, 2011: 95 thousand euros, 2012: 95
thousand euros, 2013: 104 thousand euros, 2014: 107 thousand euros, 2015: 98 thousand euros, 2016:
105 thousand euros, 2017: 104 thousand euros, 2018: 111 thousand euros, 2019: 107 thousand euros,
2020: 120 thousand euros and 2021: 123 thousand euros.

• NOS Madeira: 2009: 40 thousand euros, 2010: 83 thousand euros, 2011: 130 thousand euros, 2012: 132
thousand euros, 2013: 149 thousand euros, 2014:165 thousand euros, 2015: 161 thousand euros, 2016:
177 thousand euros, 2017: 187 thousand euros, 2018: 205 thousand euros, 2019: 195 thousand euros,
2020: 202 thousand euros and 2021: 223 thousand euros.
• NOS Wholesale: 2020: 36 thousand euros and 2021: 110 thousand euros.

This fee is a percentage decided annually by ANACOM (in 2009 it was 0.5826%) of operators’ electronic
communications revenues. The appeals invoke: i) unconstitutionality and illegality, related to the inclusion in the
cost accounting of ANACOM of the provisions made by the latter, due to judicial proceedings against the latter
(including these appeals of the activity rate) and ii) that only revenues from the electronic communications
business per se, subject to regulation by ANACOM, should be considered for the purposes of the application of
the percentage and the calculation of the fee payable, and that revenues from television content should be
excluded. Eleven sentences were handed down on the matter, of which ANACOM appealed to the Central
Administrative Court and/or the Constitutional Court. The remaining proceedings are awaiting trial and/or
decision.
• During the first quarter of 2017, NOS was notified by ANACOM of the initiation of an infraction process related to
communications of prices update at the end of 2016, beginning of 2017. In the end of the last trimester of 2020,
ANACOM notified NOS of the accusation, with the practice of 4 very severe offences and 1 severe offence related,
respectively, with i) the non-communication to customers of the right to rescind the contract with no charges, as
a result of prices changes, with (ii and iii) the supposed non-communication of pricing update and with (iv) the
adequate advance and, yet, (v) the lack of information to be communicated to ANACOM. However, ANACOM did
not present any value for a fine, except in relation to the with severe offence. In this case, ANACOM gave NOS
the possibility to settle the fine by the minimum, in the amount of 13 thousand euros, which NOS did. NOS
presented its written defense on 29 January 2021. NOS was notified, in November 2022, of ANACOM's decision
that condemned NOS to pay a fine of 5.2 million euros. NOS has challenged the decision in court, pending further
developments.

• On 17 July 2020, NOS was notified by the AdC of an illegality note (accusation) related to digital marketing without
a google search engine, which accuses the operators MEO, NOS, NOWO and Vodafone of concertation, for a
period ranging from between 2010 and 2018, failing to identify a concrete fine. It is not possible, at this moment,
to estimate the value of an eventual fine. NOS presented its written defense to the Portuguese Competition
Authority (AdC) and an appeal to the Lisbon Court of Appeal, where it challenged the nullity of the obtained
evidence. In July 2022, the Lisbon Court of Appeal confirmed NOS position pending further developments. Is the
Board of Directors' conviction, taking into account the elements it knows, that will be able to demonstrate the
various arguments in favor of its defense.




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• On 15 December 2021, NOS was notified by the Portuguese Competition Authority (AdC) of an illegality note
(accusation) related to advertising service practices in automatic recordings, which accuses NOS, other operators
and a consultant of concertation behavior in the television recordings advertising market. NOS presented its
written defense. At the time, it is not possible to estimate whether there will be an acquittal or conviction and, in
the case of the latter, the amount of a possible fine. Further developments on the AdC's decision are awaited. It
is the conviction of the Board of Directors, taking into account the elements it knows, that it will be able to
demonstrate the various arguments in favor of its defense.



44.2. Tax authorities
During the course of the 2003 to 2022 financial years, some companies of the NOS Group were the subject of tax inspections
for the 2001 to 2020 financial years. Following these inspections, NOS SGPS, as the controlling company of the Tax Group,
and companies not covered by Tax Group, were notified of the corrections made to the Group's tax losses, to VAT and
stamp tax and to make the payments related to the corrections made to the above exercises. The total amount of the
notifications unpaid is about 37 million euros, added interest, and charges. These settlement notes, which totally were
contested, are the respective lawsuits in progress.
Based on the advice obtained from the process representatives and tax consultants, the Board of Directors maintains the
belief in a favorable outcome, which is why these proceedings are maintained in court. However, in accordance with the
principle of prudence, an assessment of the group's level of exposure to these proceedings is made periodically, in the light
of the evolution of case law, and consequently the provisions recorded for this purpose are adjusted. The Group provided
the guarantees demanded by the Tax Authorities, related to these processes, according reference in Note 42.



44.3. Actions by MEO against NOS SA, NOS Madeira and NOS Açores and by NOS SA against MEO
In 2011, MEO brought against NOS SA, in the Judicial Court of Lisbon, a claim for the compensation of 10.3 million of Euros,
as compensation for alleged unauthorized portability of NOS SA in the period between March 2009 and July 2011. NOS SA
contested, and the Court ordered an expert opinion, meanwhile, deemed without effect. The discussion and trial hearing
took place in the first quarter of 2016, being the rendered in September of the same year, which considered the action to
be partially justified, based not on the occurrence of improper portability, which the Court has determined to restrict itself
to those which do not correspond to the will of the proprietor. In that regard, it sentenced NOS to the payment of
approximately 5.3 million euros to MEO, a decision of which NOS appealed to the Lisbon Court of Appeal. MEO, on the other
hand, was satisfied with the decision and did not appeal against the part of the sentence that acquitted NOS. This Court, in
the first quarter of 2018, upheld the decision of the Court of First Instance, except for interests, in which it gave reason to
the claims of NOS, in the sense that interests should be counted from the citation to the action and not from the due date
of the invoices. NOS filed an extraordinary appeal with the Supreme Court of Justice (SCJ), that appeal which found that the
facts established were insufficient to resolve on the substance of the case. Consequently, the SCJ ordered that the court
under appeal should amplify the facts. The case was transferred to the Court of First Instance and in November 2019, this,
granted the parties the possibility of requesting the production of supplementary evidence on the subject of the extension,
with NOS requesting an expert examination and the repetition of testimonial evidence. In February 2020, the Court
determined the need to obtain new evidence, which requires the analysis of the information relating to all portabilities that
serve as the basis for the process, determining the carrying out of expert evidence for that purpose. The appointment of
the expert occurred on October 2021. In December 2022, the expert asked to be relieved of his duties because he felt that
the qualified non-judicial verification was unfeasible in view of the volume of documentation to be analysed. Further
developments are awaited.

In 2011, NOS SA brought an action in Lisbon Judicial Court against MEO, claiming payment of 22.4 million euros, for damages
suffered by NOS SA, arising from violations of the Portability Regulation by MEO, in particular, the large number of
unjustified refusals of portability requests by MEO in the period between February 2008 and February 2011. The court
declared the performance of expert evidence of technical nature and an economic-financial survey, which were completed
in February 2016 and June 2018, respectively. MEO argued for the nullity of the expert economic-financial report, which was
dismissed. After the trial, in May 2022, the court partially agreed with NOS, condemning MEO to pay 7.9 million euros, a
decision challenged by MEO and NOS by filing appeals in October 2022. It is the understanding of the Board of Directors,
corroborated by the attorneys accompanying the process, that it is, in formal and substantive terms, likely that NOS SA will
be able to win the lawsuit, due to MEO already having been convicted for the same offences by ANACOM.




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44.4.Action brought by DECO
In March 2018, NOS was notified of a lawsuit brought by DECO against NOS, MEO and NOWO, in which a declaration of
nullity of the obligation to pay the price increases imposed on customers at the end of 2016 is requested. In April and May
2018, the operators, including NOS, lodged a defence. The action’s value has been fixed at EUR 60,000. After the discussion
and trial sessions were held in 2022, the parties are now awaiting the Court's decision. Board of Directors is convinced that
the arguments used by the author are not justified, which is why it is believed that the outcome of the proceeding should
not result in significant impacts for the Group's financial statements.



44.5. Action brought by Citizens Voice
In November 2022, NOS was served with a lawsuit filed by Citizens Voice - Consumer Advocacy Association ("Citizens
Voice"), where a set of requests related to the automatic activation of pre-defined volumes of mobile data, once the data
volume included in the monthly fee contracted by customers has been exhausted. Citizens Voice requests more specifically
(i) the judicial declaration of the illegality of this practice for understanding that violates a set of national and European rules,
(ii) the recognition of the right of customers to refuse to contract these services, (iii) the return of amounts paid on this
basis over the past years by NOS customers, as well as (iv) the payment of compensation in the amount of 100 euros to
each customer for alleged moral damages resulting from that practice. In December 2022 NOS presented its response
invoking the illegitimacy of Citizens Voice to present the action, namely by the existence of a profit interest, and furthermore
defending the lawfulness of the practice and its total transparency and clarity for the respective customers. The Board of
Directors is convinced that the arguments used by the plaintiff are unfounded, reason why it is believed that the outcome
of the process will not result in significant impacts for the Group's financial statements.



44.6. Interconnection tariffs
At 31 March 2023, accounts receivable and accounts payable include 37,139,253 euros and 43,475,093 euros, respectively,
resulting from a dispute between the subsidiary NOS SA and, essentially, the operator MEO – Serviços de Comunicação e
Multimédia, S.A. (previously named TMN – Telecomunicações Móveis Nacionais, S.A.), in relation to the non-definition of
interconnection tariffs of 2001. In what concerns to that dispute with MEO, the result was totally favourable to NOS S.A.,
having already become final. In March 2021, MEO filed a new lawsuit against NOS, in which it claimed the price of
interconnection services between TMN and Optimus for 2001 at 55$00 (€ 0.2743) per minute. After NOS presented its
defence contesting MEO's petition, a preliminary hearing was held and, by court decision, NOS was acquitted of the case.
MEO filed an appeal against the decision, which was dismissed, and in February 2023 filed a new appeal to the STJ where
NOS presented reply allegations. Further developments of the process are awaited, being the understanding of the Board
of Directors, supported by the lawyers who monitor the process, that there is, in substantive terms, a good chance that
NOS SA can win the action.




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45. Share incentive scheme
On 23 April 2014, the General Meeting approved the Regulation on Short and Medium-Term Variable Remuneration, which
establishes the terms of the Share Incentive Scheme ("NOS Plan"). This plan aimed at more senior employees with the
vesting taking place three years being awarded, assuming that the employee is still with the company during that period.

At 31 March 2023, the unvested plans are:
NUMBER OF
SHARES
NOS PLAN
Plan 2021 1,318,127
Plan 2022 1,077,083



During the quarter ended on 31 March 2023, the movements that occurred in the plans are detailed as follows:


NOS PLAN NOS PLAN NOS PLAN
TOTAL
2020 2021 2022
BALANCE AS AT 31 DECEMBER 2022: 1,459,370 1,320,809 1,079,152 3,859,331
MOVEMENTS IN THE PERIOD:
Vested (1,458,712) (2,086) (1,593) (1,462,391)
Cancelled / elapsed / corrected (1) (658) (596) (476) (1,730)
BALANCE AS AT 31 MARCH 2023 - 1,318,127 1,077,083 2,395,210


(1) Refers mainly to correction made for dividends paid, exit of employees not entitled to the vesting of shares and other
adjustments resulting from the way the shares are vested.
The share plans costs are recognised over the year between the awarding and vesting date of those shares. The
responsibility is calculated taking into consideration the share price at award date of each plan, for plans settled in shares,
or at the closing date, for plans settled in cash. The responsibility is recorded in Reserves and Accrued Expenses,
respectively.
As at 31 March 2023, the outstanding responsibility related to these plans is 3,516 thousand euros and is recorded in
Reserves.
The costs recognised in previous years and in the quarter ended on 31 March 2023, and its liabilities are as follows:

TOTAL

Costs recognized in previous years related to plans as at 31
6,675
December 2022
Costs of plans vested in the period (4,615)
Costs incurred in the period and others 1,456
TOTAL COST OF THE PLANS 3,516




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46. Other matters
46.1. Preventive seizure of 26.075% of the share capital of NOS SGPS, S.A.
On 4 April 2020, SONAECOM, SGPS, SA, holder of 50% of the capital of ZOPT, SGPS, SA (hereinafter “ZOPT”), was informed
by this company of the communication received from the Central Criminal Investigation Court of Lisbon (hereinafter
Tribunal) to proceed to the preventive seizure of 26.075% of the share capital of NOS, SGPS, SA, corresponding to half of
the shareholding in NOS held by ZOPT and, indirectly, by the companies Unitel International Holdings, BV and Kento Holding
Limited ”, controlled by Eng.ª Isabel dos Santos.

Under the terms of the aforementioned decision, the foreclosed shares are deprived of the exercise of voting rights and the
right to receive dividends, the latter of which must be deposited with Caixa Geral de Depósitos, S.A. at the court's discretion.
The other half of ZOPT's participation in NOS share capital, corresponding to an identical percentage of 26.075% - and
which, at least in line with the criterion used by the Court, embodies the 50% held in ZOPT by SONAECOM - was not subject
to seizure, nor the rights attached to it were subject to any limitation.

On 12 June 2020, ZOPT was authorized by the Lisbon Central Criminal Investigation Court to exercise the voting right
corresponding to the 26.075% of NOS share capital preventively seized under the aforementioned Court order.
Following the communication of April 4, 2020, ZOPT filed third-party claims, which, in June 2020, were rejected by the
investigating judge on the grounds that the Portuguese courts had no jurisdiction to hear and decide them, a decision that,
having been appealed by ZOPT, was revoked by the Lisbon Court of Appeal, in February 2021.

In November 2021, the Investigating Judge, aware of the cause’s merit, dismissed the third-party embargoes presented by
ZOPT, a decision that, according to ZOPT, was appealed to the Court of Appeal. After being admitted in February 2022, in
June 2022, ZOPT was notified of the decision dismissing the appeal. Further developments are awaited. The Board of
Directors of NOS is not aware of any developments in this process.
In September 2022, Sonaecom informed that in a meeting of the General Meeting of ZOPT it was decided to proceed with
the amortization of Sonaecom's stake in that company and the refund of the additional payments made by Sonaecom, for
a consideration that includes the delivery of shares representing 26.075% of the capital of NOS. As a result of this
repayment, which was subject to the applicable legal procedures, Sonaecom is no longer a shareholder of ZOPT, which is
now wholly owned by Unitel International Holdings, BV and Kento Holding Limited, companies controlled by Isabel do
Santos. In December 2022, Sonaecom, upon completion of the legal procedures, informed that it now holds directly
134,322,268 ordinary shares of NOS, corresponding to 26.07% of its share capital.
Additionally, also informed that such participation is also attributable to the entities with which it is in a control relationship,
namely, SONTEL, BV, Sonae Investments, BV, SONAE, SGPS, S.A. and EFANOR INVESTIMENTOS, SGPS, S.A..

The Board of Directors of NOS is not aware of any developments in the above mentioned preventive seizure process.



47. Subsequent events
On April 5, 2023, the integrated management report, individual and consolidated financial statements and corporate
governance report for the year 2022, as well as the Board of Directors' proposal for the payment of an ordinary dividend per
share of 27.8 cents and an extraordinary dividend of 15.2 cents were approved at the NOS SGPS Annual Shareholders'
General Meeting.
Up to the date of approval of this document, no other subsequent relevant events have occurred that merit disclosure in
this report.




These financial statements are a translation of financial statements originally issued in Portuguese in accordance with
International Financial Reporting Standards (IAS / IFRS) as adopted by the European Union and the format and disclosures
required by those Standards, some of which may not conform to or be required by generally accepted accounting principles
in other countries. In the event of discrepancies, the Portuguese language version prevails.




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48. Annexes
A) Companies included in the consolidation by the full consolidation method
PERCENTAGE OF OWNERSHIP
SHARE
COMPANY HEADQUARTERS PRINCIPAL ACTIVITY EFFECTIVE DIRECT EFFECTIVE
HOLDER
31-03-2022 31-03-2023 31-03-2023
NOS, SGPS, S.A. (Holding) Lisbon Management of investments - - - -
Rendering of telecommunications services, establishment, management and operation of telecommunications
BLU S.A (a) Lisbon NOS Comunicações - 100% 100%
networks
Empracine - Empresa Promotora de Atividades Invest and support the development of companies that aim to commercialize technologies and products that
Lisbon Lusomundo SII 100% 100% 100%
Cinematográficas, Lda. result from scientific and technological research
Fundo de Capital de Risco N5G (b) Lisbon Movies exhibition NOS 100% 100% 100%
Lusomundo - Sociedade de investimentos
Lisbon Management of Real Estate NOS 100% 100% 100%
imobiliários SGPS, SA
Lusomundo Imobiliária 2, S.A. Lisbon Management of Real Estate Lusomundo SII 100% 100% 100%
Lusomundo Moçambique, Lda. (c) Maputo Movies exhibition and commercialization of other public events NOS + NOS Cinemas 100% 100% 100%
Distribution of television by cable and satellite and operation of telecommunications services in the Azores
NOS Açores Comunicações, S.A. Ponta Delgada NOS Comunicações 84% 84% 84%
area
Movies distribution, editing, distribution, commercialization and production of audiovisual products.
NOS Audio - Sales and Distribution, S.A. Lisbon Procurement and exploitation of advertising and any activity of commercial valorization of objects and figures NOS 100% 100% 100%
related to entertainment activities.
NOS Audiovisuais, SGPS, S.A. Lisbon Management of social participations in other companies as an indirect form of economic activity NOS 100% 100% 100%

Implementation, operation, exploitation and offer of networks and rendering services of electronic
NOS Comunicações, S.A. Lisbon comunications and related resources; offer and commercialisation of products and equipments of electronic NOS 100% 100% 100%
communications
Service rendered of business support and management and administration consultancy services, including
accounting, logistics, administrative, financial, tax, human resources services and any other services that are
subsequent or related to previous activities. The company may also perform any other services. activities that
NOS Corporate Center, S.A. Lisbon NOS 100% 100% 100%
are complementary, subsidiary or ancillary to those referred to in the preceding paragraph, directly or
through participation in any other form of association, temporary or permanent, with other companies and /
or other entities governed by public or private law.
Achievement and promotion of scientific activities and research and development as well as the
demonstration, dissemination, technology transfer and formation in the fields of services and information
NOS Inovação, S.A. Matosinhos NOS 100% 100% 100%
systems and fixed solutions and last generation mobile, television, internet, voice and data, and licensing and
engineering services and consultancy
NOS Internacional, SGPS, S.A. Lisbon Management of social participations in other companies as an indirect form of economic activity NOS 100% 100% 100%
NOS Lusomundo Audiovisuais, S.A. Lisbon Import, distribution, commercialization and production of audiovisual products NOS Audiovisuais SGPS 100% 100% 100%
NOS Lusomundo Cinemas , S.A. Lisbon Movies exhibition and commercialization of other public events NOS 100% 100% 100%
Distribution of television by cable and satellite and operation of telecommunications services in the Madeira
NOS Madeira Comunicações, S.A. Funchal NOS Comunicações 78% 78% 78%
area
Distribution of insurance and related activities. It may also engage in any other complementary, subsidiary or
NOS Mediação de Seguros, S.A. Lisbon accessory activities, directly or through participation in any other forms of association, temporary or NOS - 100% 100%
permanent, with other companies and/or other public or private entities.
NOS Property, S.A. Lisbon Management of investments NOS 100% 100% 100%
NOS Sistemas España, S.L. Madrid Rendering of consulting services in the area of information systems NOS Comunicações 100% 100% 100%
NOS Sistemas, S.A. Lisbon Rendering of consulting services in the area of information systems NOS Comunicações 100% 100% 100%

NOS TECHNOLOGY – Concepção, Construção e Design, construction, management and exploitation of electronic communications networks and their
Matosinhos NOS Comunicações 100% 100% 100%
Gestão de Redes de Comunicações, S.A. ('Artis') equipment and infrastructure, management of technologic assets and rendering of related services


Trade, service rendered and exploitation of wholesale offerings of national and international electronic
communications services and related services, namely information and communication technology services.
Rendering of consulting services and support to contract management in roaming business.
The organization of the material and human resources necessary for the commercialization, promotion and
NOS Wholesale, S.A. Lisbon NOS SA 0% 100% 100%
operation of electronic communications networks and circuits.
The company may also perform any other activities that are complementary, subsidiary or ancillary to those
referred to in the preceding paragraphs, directly or through participation in any other form of association,
temporary or permanent, with other companies and / or other entities governed by public or private law.

Per-Mar – Sociedade de Construções, S.A. ('Per-
Lisbon Purchase, sale, renting and operation of property and commercial establishments NOS SA 100% 100% 100%
Mar')
Sontária - Empreendimentos Imobiliários, S.A. Realisation of urbanisation and building construction, planning, urban management, studies, construction and
Lisbon NOS Comunicações 100% 100% 100%
('Sontária') property management, buy and sale of properties and resale of purchased for that purpose
Teliz Holding, S.A. Lisbon Management of group financing activities NOS 100% 100% 100%
Provision of engineering and consulting services in the area of information technology, communications and
Ten Twenty One, S.A (d) Lisbon NOS - 100% 100%
electronics
(a) Adquirida on March 2023
(b) NOS SGPS: 27,50%; NOS Audiovisuais SGPS: 22,50%; NOS Sistemas: 20,00%; NOS Internacional SGPS: 20,00%; NOS Cinemas: 10,00%
(c) NOS SGPS: 90%; NOS Lusomundo Cinemas: 10%
(d) Created on February 2023




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B) Associated companies

PERCENTAGE OF OWNERSHIP
SHARE
COMPANY HEADQUARTERS PRINCIPAL ACTIVITY EFFECTIVE DIRECT EFFECTIVE
HOLDER
31-03-2022 31-03-2023 31-03-2023
Import, distribution, commercialization and production of NOS
Big Picture 2 Films, S.A. Oeiras 20.00% 20.00% 20.00%
audiovisual products Audiovisuais
Big Picture 2
Big Picture Films, S.L. Madrid Distribution and commercialization of movies 20.00% 100.00% 20.00%
Films, S.A.
Conception, production, realization and commercialization of sports
programs for telebroadcasting, purchase and resale of the rights to
Sport TV Portugal, S.A. Lisbon NOS 25.00% 25.00% 25.00%
broadcast sports programs for television and provision of publicity
services




C) Jointly controlled companies

PERCENTAGE OF OWNERSHIP
SHARE
COMPANY HEADQUARTERS PRINCIPAL ACTIVITY EFFECTIVE DIRECT EFFECTIVE
HOLDER
31-03-2022 31-03-2023 31-03-2023
NOS
Dreamia Servicios de Televisión, S.L. Amsterdam Management of investments - 50.00% 50.00%
Audiovisuais
Conception, production, realization and commercialization of Dreamia
Dreamia - Serviços de Televisão, S.A. Lisbon 50.00% 100.00% 50.00%
audiovisual contents and provision of publicity services Holding BV
FINSTAR - Sociedade de Investimentos e Distribution of television by satellite, operation of Teliz Holding
Luanda 30.00% 30.00% 30.00%
Participações, S.A. telecommunications services B.V.
Distribution of television by satellite, operation of
MSTAR, SA (a) Maputo NOS 30.00% 30.00% 30.00%
telecommunications services
Electronic communications services provider, production,
Upstar Comunicações S.A. Vendas Novas commercialization, broadcasting and distribution of audiovisual NOS 30.00% 30.00% 30.00%
contents
Projects development and activities in the areas of entertainment,
telecommunications and related technologies, the production and
ZAP Media S.A. Luanda FINSTAR 30.00% 100.00% 30.00%
distribution of the contents and the design, implementation and
operation of infrastructure and related facilities


Projects development and activities in the areas of entertainment,
telecommunications and related technologies, the production and
Dualgrid - Gestão de Redes Partilhas, S.A. Luanda FINSTAR 50% 50.00% 50.00%
distribution of the contents and the design, implementation and
operation of infrastructure and related facilities


(a) NOS SGPS: 29,40%; NOS Comunicações: 0,60%.


Financial investments whose participation is less than 50% were considered as joint arrangements due to shareholder
agreements that confer joint control.




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D) Companies in which NOS does not have significant influence
PERCENTAGE OF OWNERSHIP
SHARE
COMPANY HEADQUARTERS PRINCIPAL ACTIVITY EFFECTIVE DIRECT EFFECTIVE
HOLDER
31-03-2022 31-03-2023 31-03-2023
Research applied to different areas associated with digital
Associação Laboratório Colaborativo em
Guimarães transformation to encourage cooperation between R&D units, NOS Inovação 4.92% 4.92% 4.92%
Transformação Digital - DTX
educational institutions and the productive sector
Invest and support the development of companies that aim to
Fundo TechTransfer Lisboa commercialize technologies and products that result from scientific and NOS Inovação 3.90% 3.90% 3.90%
technological research
The Company's activities relate to information and computer
RK. AI - Serviços de Processamento de Fundo NOS
Porto technologies, images and data processing and analysis, hosting and 11.76% 11.76% 11.76%
Imagens e Análise de Dados, S.A. (Reckon.ai) 5G
related activities and IT consulting.



KIT-AR is a software-based startup, founded in 2018, resulting from a
European industrial research project led by 2 European R&D entities -
Sintef (NO) and UCL (UK). KIT-AR has developed an innovative
augmented reality platform supporting operators on the shop floor
equipped with smart glasses: (By using KIT-AR, large industrial
companies with processes requiring manual intervention from operators
SkillAugment, Lda (KIT-AR) (a)
will be able to mitigate errors in the various manufacturing processes
and increase the global productivity of the operation;As a company
operating in a rapidly expanding market, with a technically
differentiated solution already validated by a small initial set of
customers and with a technically robust team, KIT-AR configures a
relevant investment opportunity.




Data processing activities, information domiciliation and related
activities, namely in the health area. Business and management
consultancy, namely planning, organization, control, information and
management, company reorganization. Compensation strategies for
termination of employment relationship. Consultancy on safety and Fundo NOS
Seems Possible, Lda. (Knock Healthcare) (b) Porto - 0.00% 0.00%
hygiene at work. Design of accounting programs and budget control 5G
processes. Development of all types of software. Marketing objectives
and policies and human resources management. Sale of medical
devices and other health equipment. Services to support the
internationalization of plans in health area.



The society aims to measure the emotional impact that multimedia
Fundo NOS
Mindprober Braga content has on consumers, through wearables that monitor biometric - 2.09% 2.09%
5G
data such as sweat or heartbeat acceleration.



DIDIMO has developed a platform that allows the generation, in about Fundo NOS
Didimo Inc. (c) Dover - 0.00% 0.00%
60 seconds, of 3D digital avatars based on photographs. 5G



DIDIMO has developed a platform that allows the generation, in about Fundo NOS
Didimo SA (c) Porto - 0.00% 0.00%
60 seconds, of 3D digital avatars based on photographs. 5G

Lusitânia Vida - Companhia de Seguros, S.A
Lisboa Insurance services NOS 0.03% 0.03% 0.03%
("Lusitânia Vida")
Lusitânia - Companhia de Seguros, S.A
Lisboa Insurance services NOS 0.02% 0.02% 0.02%
("Lusitânia Seguros")
(a) The investment in the entity (KIT-AR) was in convertible debt, which represent a participation of 0%
(b) The investment in the entity (Knock Healthcare) was in convertible debt, which represent a participation of 0%
(c) NOS 5G Fund only holds 1 share in each entity, representing 0.0% of the capital.




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100
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