1
Lisbon, 21 February 2020



CEO Message
The world is on the verge of the 4th industrial revolution, an era of scientific and technological disruption
which will bring with it profound social transformation and maybe even a redefinition of what it means to be
human. At NOS, we cannot begin to imagine what this new era will bring, although we do believe that it will
bring a better standard of living for all, in a more balanced, inclusive and humane society. NOS wants to
contribute to this bright future and is

Our vision for NOS is to be at the forefront of technology, with the best communication networks, fully digital,
and transparent, simple and efficient integration of technologies such as 5G, artificial intelligence, Cloud or
IoT, with a human touch. Always aiming to provide our customers with the best services and customer
experience. We want to be a key player in this evolutionary process that will impact everyone and to be a
catalyst for transformation in business, thereby maximizing the opportunities that this revolution will bring for
Portugal and the Portuguese.

To be sustainable in the long term in a world that is changing so fast, companies have to embrace socially
responsible business practices and contribute actively to creating a better society for future generations. We
embrace our commitment to be a role model for inclusiveness and diversity and have made climate change
and carbon emission reductions a top priority. We want to be a business that cares for improving and
developing its people, and ultimately for their happiness.

We took important steps in 2019 toward the creation of a new NOS, in areas ranging from technology to
process, from environment to diversity, and naturally impacting our relationship with our customers. We
ensured that we continued on the path of growth and profitability that was first laid down 6 years ago. Each
and every year since then, we have recorded improvement both in operating and financial indicators, a unique
performance of which we are very proud. Given the ambitious transformation plan underway, the Board has
recommended a payment of a 27.8 eurocents dividend per share, which represents 100
Result. This more conservative approach to shareholder remuneration will secure greater financial flexibility
whilst still providing an attractive level of shareholder returns with a dividend yield of 6.2% per share.

In 2020, we will accelerate the pace of internal transformation taking important steps towards building the
new NOS. It will also be a critical year on the external front, with a number of processes ongoing that could
play a defining role in our future. Despite the unfounded and disproportionate regulatory hostility, we are
facing, given the quality of our team, asset base, our track record of success and the results we have achieved
so far, we are very confident about the future.

By leveraging all that is best in technology, we believe that NOS will not only be a leading player in its markets,
but also a leading agent in the transformation process towards a better society.



Miguel Almeida
CEO

2
4Q19

Solid RGU growth in 4Q19 with mobile showing particularly good growth and TV
•
posting robust quarterly numbers;

Slower quarter for Cinema exhibition due to fewer blockbusters, also reflecting on
•
audiovisual distribution activity;

Good yoy growth in consolidated revenues albeit lighter than previous quarter due
•
to slower Cinema and Audiovisuals revenue growth;

EBITDA growing above revenues reflecting cost efficiencies partially driven by
•
transformation programme;

Technological investments in FttH deployment on track and mobile network upgrade
•
complete;

FCF lower due to seasonal working capital movements albeit improving yoy;
•



Table 1.

4Q19 Highlights 4Q18 4Q19 4Q19 / 4Q18 2018 2019 2019 / 2018


Financial Highlights
Operating Revenues 408.9 414.0 1.3% 1,576.2 1,599.2 1.5%
Telco Revenues 389.8 394.3 1.1% 1,505.9 1,522.3 1.1%
EBITDA 132.6 135.7 2.4% 624.3 641.1 2.7%
EBITDA Margin 32.4% 32.8% 0.3pp 39.6% 40.1% 0.5pp
Telco 118.3 121.7 2.8% 569.2 585.0 2.8%
EBITDA Margin 30.4% 30.9% 0.5pp 37.8% 38.4% 0.6pp
Net Income Before Associates & Non-Controlling Interests 14.7 8.7 (41.0%) 143.7 144.3 0.4%
EBITDA - Total CAPEX Excluding Leasings 38.3 36.0 (6.0%) 250.5 266.7 6.5%
Total Free Cash-Flow Before Dividends, Financial Investments and
0.3 2.4 n.a. 180.4 146.8 (18.7%)
Own Shares Acquisition




3
Operational highlights
RGU growth picked up sequentially in 4Q19 with net adds of 69.6 thousand services, 47.2 of which in post-
paid mobile. Pay TV net adds recorded robust growth of 7.3 thousand, with growth in fixed access of 8.7
thousand mitigated by a decline in DTH services of 1.4 thousand, the latter reducing the level of quarterly
disconnections. Fixed broadband and fixed voice services, sold primarily together with core TV services, grew
by 12.2 thousand and 5.9 thousand services, respectively.

NOS focus on pick and mix solutions for the consumer market is helping to drive take-up of integrated fixed
and mobile services that are more flexible for the consumer in that they can subscribe to basic offers and
manage additional services according to usage profiles without having to renegotiate original bundles. The
shift in consumer offers is leading to more take up of integrated fixed and mobile offers rather than more rigid
convergent bundles, with penetration of the convergent and integrated offers as a percentage of the fixed
customer base reaching 59.8% at the end of 4Q19, more than 930 thousand customers. Communication is
more around made to measure bundling, incentivising customers to upgrade SIM card data allowances in
mobile and actively manage the number and profile of each card in the bundle. This shift in marketing
approach is only possible through continued technological innovation in systems and networks together with
transformational simplification and digitalization of processes and customer interfaces.

Content plays a key role in our entertainment value proposition. Our strategy is to position our TV user
curator of linear and non-linear multi-source content, developing innovative and
more segmented content formats, as a means of increasing customer traction within our NOS ecosystem.
We also actively leverage our unique combination of telco, audio-visual and cinema assets to tap the full
potential of new technologies developing partnerships wherever relevant. During 2H19, we launched a
number of innovative and segmented content formats, from which it is worth highlighting the success of our
exclusive movie channel OS with a distinctive line-up of the most recent box office hits from major
studios and award-winning films in partnership with Disney, FOX, MGM, Universal and Warner, among others.
The channel is available over linear and non-linear formats and included for free in all . We
were also the first operator in Portugal to launch picture in picture (PIP) with our NOS TV platform allowing
customers to watch TV content whilst using other applications. We are particularly proud of the fact that we
developed this new feature entirely in-house, attesting to our ability to set the pace for new standards in
consumer experience.

In terms of premium content, in 4Q19 we recorded tenuous signs of improvement with marginal sequential
growth in the average number of sports channel subscribers, which in turn, and notwithstanding the less
favourable pricing mix, led to marginal yoy growth in Premium revenues. This is an encouraging development
considering efforts made to boost sports channel take-up through attractive bundling offers and retention
schemes alongside the industry-wide battle against piracy.

Fixed residential ARPU posted relatively flat yoy performance reflecting a combination of inflation like growth
in average customer revenues and contributions from premium subscriptions helping to offset the yoy
decline in discretionary traffic revenues due to regulated caps on international calls within Europe which were
introduced in May 2019.



4
In B2B the total number of accounts was stable yoy, with a marked increase in RGUs per account with 18
thousand RGU net adds in 2019 accompanied by almost 2% growth in revenues per account. In the Corporate
segment, improved performance yoy resulted from the continued focus on upselling more value-added data
and IT services, which already represent close to 20% of Corporate Revenues, thus helping to offset the
generalized yoy decline in more traditional telco revenues. Public recognition of the work done in this area
was achieved when NOS was awarded Hewlett Pack s


logical assets and service management. In the Mass Business segment, NOS is exploring initial IT
and data opportunities and laying the groundwork for partnering with customers to drive their own digital
transformation processes. The quarter was again positive for the Wholesale division as a result of continued
momentum from lower margin voice and data traffic and of the continued structural growth in revenues from
network sharing arrangements in place.

Technological superiority, innovation and reliability are structural pillars for long-term competitiveness in a
sector characterized by a continuous drive for technological renewal and investment. To provide our
Consumer and Business customers nationwide with entertainment and communication services with the
service quality and reliability they expect, we continue to make significant investments in the capacity,
coverage and resilience of our mobile and fixed infrastructures.

Our FttH deployment programme is going according to plan and total fixed NGN coverage increased by 37
thousand households in 4Q19, reaching 4.65 million households, 32% of which with FttH. NGN coverage is
delivered over our legacy Docsis 3.1 and FttH networks, new FttH build and wholesaled FttH network within
the context of the sharing agreement with Vodafone and finally through wholesale access from dst, a regional
FttH provider. Modernization of our mobile infrastructure with the upgrade to a 5G ready single RAN
architecture is now complete and network performance and customer satisfaction levels are already reflecting
this important investment. With this investment completed, we are prepared for the evolution to mobile
1Gbps with the upcoming licensing of 5G spectrum expected during 1H20.




5
Cinema and Audiovisuals



Table 2.

Operating Indicators ('000) 4Q18 4Q19 4Q19 / 4Q18 2018 2 01 9 2019 / 2018
(1)
Cinema
Revenue per Ticket (Euros) 4.7 5.3 11.3% 4.9 5.2 7.5%
Tickets Sold - NOS 2,542.2 2,408.5 (5.3%) 8,889.1 9,269.4 4.3%
Tickets Sold - Total Portuguese Market (2) 4,238.2 4,021.1 (5.1%) 14,776.6 15,516.7 5.0%
Screens (units) 218 219 0.5% 218 219 0.5%
(1) Portuguese Operations
(2) Source: ICA - Portuguese Institute For Cinema and Audiovisuals




NOS Cinemas was awarded the 2020 Consumer s Choice Award in the category of Cinema Theatres, the
sixth consecutive year we have been distinguished in this category. This is a remarkable achievement which
demonstrates the clear and continued preference of Portuguese consumers for NOS cinemas.

In 4Q19, NOS has once more pioneered the adoption of new technology in its cinema screens, by introducing
the first ScreenX theatre in Portugal. The film is projected on screens not only on the front of the room, but
also on the side walls, creating a 270-degree immersive experience. NOS Cinemas has also launched another
special format, called NOS XVision a larger, premium screen, with laser projection and higher quality of
sound. Also, a new concept of a premium area has also been introduced, with more spacious seats and
accessed through the NOS Lounge, with a higher level of service than the normal entrance to the cinemas.

ema business posted a 5.3% yoy decline in terms of ticket sales to 2.409 million in 4Q19, reflecting
the performance of the market as a whole[1], due to the comparison with a very strong 4Q18, which was the
best fourth quarter ever for cinema exhibition. The top films exhibited in 4Q19 we Joker Frozen II Star
Wars: The Rise of Skywalker Jumanji: The Next Level and Maleficent: Mistress of Evil .

Average revenue per ticket improved by 1% qoq and by 11.3% yoy, to 5.3 euros in 4Q19, a continuation of the
good yoy performance seen in previous quarters, benefitting also from the launch of the abovementioned
special formats oss box-office revenues decreased by 2.1% in 4Q19, as NOS continues to lead the
market with a 61.2% share of gross revenues.

In the Audiovisuals arena, NOS distributed 7 of the top 10 cinema box-office hits in 4Q19, Joker Frozen II
Star Wars: The Rise of Skywalker , Maleficent: Mistress of Evil , Gemini Man , The Addams Family , and A
Shaun the Sheep Movie: Farmageddon , maintaining its clear leadership status in this market.




Source: ICA Portuguese Institute For Cinema and Audiovisuals
[1]




6
Consolidated Income Statement

The following Consolidated Financial Statements have been subject to full audit for the Full Year 2019.

As from 1Q19, accounts are reported applying IFRS 16, primarily affecting the accounting of operating
lease contracts. Restated values for the corresponding periods in 2018 are presented in this report and are the
basis for all comparisons made.


Consolidated Financial Statements


Table 3.
Profit and Loss Statement
4Q18 4Q19 4Q19 / 4Q18 2018 2019 2019 / 2018
(Millions of Euros)


Operating Revenues 408.9 414.0 1.3% 1,576.2 1,599.2 1.5%
Telco 389.8 394.3 1.1% 1,505.9 1,522.3 1.1%
Consumer Revenues 245.5 250.0 1.8% 973.0 979.4 0.7%
Business and Wholesale Revenues 127.6 129.3 1.3% 459.6 470.1 2.3%
Others and Eliminations 16.7 15.0 (10.4%) 73.4 72.7 (0.9%)
Audiovisuals & Cinema (1) 29.8 30.3 1.8% 111.5 118.8 6.5%
Others and Eliminations (10.8) (10.6) (1.8%) (41.3) (41.8) 1.3%
Operating Costs Excluding D&A (276.3) (278.3) 0.7% (951.9) (958.2) 0.7%
Direct Costs (152.7) (159.8) 4.7% (546.1) (558.8) 2.3%
Non-Direct Costs (2) (123.6) (118.5) (4.1%) (405.7) (399.3) (1.6%)
EBITDA (3) 132.6 135.7 2.4% 624.3 641.1 2.7%
EBITDA Margin 32.4% 32.8% 0.3pp 39.6% 40.1% 0.5pp
Telco 118.3 121.7 2.8% 569.2 585.0 2 .8 %
EBITDA Margin 30.4% 30.9% 0.5pp 37.8% 38.4% 0.6pp
Cinema Exhibition and Audiovisuals 14.3 14.0 (1.5%) 55.1 56.0 1.7%
EBITDA Margin 47.8% 46.3% (1.5pp) 49.4% 47.2% (2.2pp)
Depreciation and Amortization (101.6) (123.3) 21.4% (421.4) (421.3) (0.0%)
(Other Expenses) / Income (5.1) (3.9) (23.4%) (1.0) (17.9) n.a.
Operating Profit (EBIT) (4) 25.9 8 .5 (67.3%) 201.9 201.8 (0.0%)
Share of results of associates and joint ventures (2.0) (3.3) 66.8% (6.4) (1.0) (84.1%)
(Financial Expenses) / Income (6.6) (5.6) (15.4%) (30.7) (24.8) (19.3%)
Income Before Income Taxes 17.3 (0.4) n.a. 164.8 176.0 6.9%
Income Taxes (4.5) 5.8 n.a. (27.5) (32.8) 19.4%
Net Income Before Associates & Non-Controlling Interests 14.7 8.7 (41.0%) 143.7 144.3 0.4%
Income From Continued Operations 12.8 5.4 (57.8%) 137.3 143.2 4.3%
o.w. Attributable to Non-Controlling Interests (0.1) 0.0 n.a. 0.5 0.3 (49.4%)
Net Income 12.7 5.4 (57.3%) 137.8 143.5 4.2%
(1) Includes cinema operations in Mozambique.
(2) Non-Direct Costs Include Commercial & Customer Related Costs and Operating & Structure Costs
(3) EBITDA = Operating Profit + Depreciation and Amortization + Integration Costs + Net Losses/Gains on Disposal of Assets + Other Non-Recurrent Losses/Gains
(4) EBIT = Income Before Financials and Income Taxes.




7
4Q19 Financial Highlights
Revenues

In 4Q19, Consolidated Revenues posted growth of 1.3% yoy to 414 million euros, with growth in core telco
revenues of 1.1% to 394.3 million euros and with a slowdown in yoy performance of the audiovisuals and
cinema businesses, which grew 1.8% yoy to 30.3 million euros.

Telco Consumer revenues grew by 1.8% yoy to 250 million euros, an increase that resulted from solid growth
yoy in revenues from fixed residential services, in stand-alone mobile services and in equipment sales due to
increased focus on sales of mobile handsets and related services. This growth was partially mitigated by the
continued decline in residential satellite revenues, which fell by close to 11% in 4Q19. Business and Wholesale
Revenues grew by 1.3% in the quarter to 129.3 million euros, with growth in customer revenues of 2% yoy
and in wholesale revenues of 3.1%, which again posted another good quarter in terms of lower margin traffic
and data contracts and also benefitted from the yoy increase in revenues from network sharing. The growth
in customer and wholesale revenues in B2B was mitigated by the decline of Equipment sales in this segment.

Overall, total customer revenues grew by close to 1%, benefiting from higher growth in basic customer
revenues which was dampened by a decline in traffic revenues, due to the regulatory imposition of tariff caps
on international calls within Europe, which came into force in May 2019. Premium sports revenues posted a
marked improvement from the very negative yoy trends of previous quarters and were actually marginally
positive, with the average number of premium services stabilizing for the first time in many years.

Revenues from Audiovisuals and Cinemas slowed to 1.8% in 4Q19, reaching 30.3 million euros, due to the
weaker line-up of box office hits in comparison with the previous couple of quarters, as discussed above.
Audiovisual cinema distribution revenues actually performed ahead of Cinema Exhibition revenues given the
very strong movie distribution share achieved in the quarter, having been responsible for distribution of 7 out
of the top 10 movies.


EBITDA and Net Results

Total OPEX grew by 0.7% yoy, 2 million euros, to 278.3 million euros in 4Q19, leading to growth in
Consolidated EBITDA of 2.4% to 135.7 million euros. Telco EBITDA grew by 2.8% yoy to 121.7 million euros
however Audiovisuals and Cinema EBITDA fell yoy by 1.5% to 14 million euros, reflecting the weaker sales in
the quarter.

The quarter was negatively impacted primarily by an increase in traffic costs led by increased WS activity yoy,
increased cost of goods sold due to higher sales of mobile handsets and due to increased advertising costs
related with campaigns in the quarter. OPEX was positively impacted by efficiencies in more structural cost
items such as maintenance and repairs and SGA, resulting from ongoing transformational initiatives, and by a
lower level of operating provisions. The increase in Depreciation and Amortization to 123.3 million euros in
the quarter was mainly the result of network modernization and equipment related impairments.




8
Net Results in 4Q19 reduced to 5.4 million euros, mainly due to the impact of higher depreciation. Other cost
items below recorded a mix of positive and negative impacts, namely a reduction in interest costs due to
better financing terms and lower cost of debt, lower non-recurrent costs due to less restructuring related
charges and finally a deterioration in contribution from associate companies due to significant local currency
devaluation in recent months, in particular in October. As a result of these combined impacts, Earnings before
Tax were significantly lower and, alongside an alteration in the tax rate applied to deferred tax assets recorded,
this led to a negative provision for tax in the quarter of 5.8 million euros.




CAPEX


Table 4.

CAPEX (Millions of Euros) (1) 4Q18 4Q19 4Q19 / 4Q18 2018 2019 2019 / 2018



Total CAPEX Excluding Leasing Contracts 94.3 99.7 5.7% 373.8 374.4 0.1%
Telco 87.0 89.7 3.1% 345.6 344.5 (0.3%)
% of Telco Revenues 22.3% 22.7% 0.4pp 23.0% 22.6% (0.3pp)
o.w. Technical CAPEX 48.7 52.6 8.1% 199.6 203.1 1.8%
% of Telco Revenues 12.5% 13.4% 0.9pp 13.3% 13.3% 0.1pp
Baseline Telco 26.1 34.2 31.1% 118.7 136.0 14.6%
Network Expansion / Substitution and
22.6 18.4 (18.5%) 80.8 67.1 (17.0%)
Integration Projects and Others
o.w. Customer Related CAPEX 38.3 37.0 (3.2%) 146.1 141.4 (3.2%)
% of Telco Revenues 9.8% 9.4% (0.4pp) 9.7% 9.3% (0.4pp)
Audiovisuals and Cinema Exhibition 7.3 10.0 37.0% 28.2 29.9 5.9%
Leasing Contracts 16.8 33.6 100.1% 49.9 69.8 39.9%
Total Group CAPEX 111.1 133.3 20.0% 423.8 444.2 4.8%
(1) CAPEX = Increase in Tangible and Intangible Fixed Assets, Contract Costs and Rights of Use




Total CAPEX of 99.7 million euros (excluding leasing contracts) was 5.7% higher yoy in 4Q19, representing
24.1% as a proportion of Consolidated Revenues. With the implementation of IFRS16 as from 2019, and as in
previous quarters, the level of operational leasing contracts is isolated in the table above to provide a better
proxy of cash CAPEX for the period and to reduce quarterly volatility resulting from operating lease
capitalization under the new accounting rules.

Total Telco CAPEX posted a 3.1% increase to 89.7 million euros (22.7% of Telco Revenues). Technical Telco
investments were 8.1% higher in 4Q19 and as a percentage of Telco Sales, Technical Telco CAPEX amounted
to 13.4% in 4Q19, and to 13.3% in the full year.

Audiovisuals and Cinema CAPEX increased by 37% yoy to 10 million euros due to a one-off peak in Cinema
CAPEX due to the refurbishment of one cinema multiplex.




9
Cash Flow


Table 5.

Cash Flow (Millions of Euros) 4Q18 4Q19 4Q19 / 4Q18 2018 2 01 9 2019 / 2018



EBITDA 132.6 135.7 624.3 641.1
2.4% 2.7%
Total CAPEX Excluding Leasings (94.3) (99.7) 5.7% (373.8) (374.4) 0.1%
EBITDA - Total CAPEX Excluding Leasings 38.3 36.0 (6.0%) 250.5 266.7 6.5%
% of Revenues 9.4% 8.7% 15.9% 16.7%
(0.7pp) 0.8pp
Non-Cash Items Included in EBITDA - CAPEX and Change in
(10.6) 0.8 n.a. (8.0) (9.2) 14.8%
Working Capital
(1)
(16.2) (16.5) 1.4% (61.3) (65.0) 6.0%
Leasings (Capital & Interest)
Operating Cash Flow 11.4 20.4 78.1% 181.2 192.6 6.3%
Interest Paid (2.8) (4.2) 51.4% (15.1) (16.0) 6.2%
Income Taxes Paid (7.4) (10.2) 37.5% (3.6) (19.0) n.a.
Disposals 0.4 0.0 (90.7%) 1.3 1.4 11.2%
(2)
(1.4) (3.6) 161.0% 16.6 (12.2) n.a.
Other Cash Movements
Total Free Cash-Flow Before Dividends, Financial Investments
0.3 2.4 n.a. 180.4 146.8 (18.7%)
and Own Shares Acquisition
Financial Investments 0.0 (0.2) n.a. 0.0 (0.2) n.a.
Acquisition of Own Shares 0.0 (3.2) n.a. (3.1) (6.7) 116.7%
Dividends 0.0 0.0 n.a. (153.9) (179.6) 16.7%
Free Cash Flow 0.3 (1.0) n.a. 23.4 (39.8) n.a.
Debt Variation Through Financial Leasing, Accruals &
(5.7) (3.4) (40.7%) (15.3) (11.0) (28.4%)
Deferrals & Others
Change in Net Financial Debt 5.4 4.3 (19.5%) (8.1) 50.7 n.a.
(1) Includes Long Term Contracts.
(2) Includes Cash Restructuring Payments and Other Cash Movements.




Presentation of some aggregates has changed since FY18 to accommodate introduction of the IFRS16
accounting standard and to facilitate yoy comparisons and understanding of cash flow trends.

Free Cash Flow Before Dividends increased marginally in 4Q19 to 2.4 million euros bringing the total for FY19
to 146.8 million euros. The decline versus last year is due to the positive impact, in 3Q18, of a non-recurrent
inflow related with the receival of a legal settlement in favour of NOS, regarding a pending regulatory dispute
over operator terminator rate charges.

EBITDA-CAPEX excluding the impact of leases reached 36 million euros in 4Q19, while the level of investment
in working capital and non-cash adjustments in EBITDA-CAPEX amounted to a positive amount of 0.8 million
euros, which compares with a negative amount of 10.6 million euros in 4Q18, mostly due to the phasing of
payments related to CAPEX. The cash impact of leasing contracts, relating to both components of capital
amortization and interest charges, was 16.5 million euros in 4Q19, marginally up from 16.2 million euros in
4Q18. Combining these effects, Operating Cash Flow increased by 78.1% to 20.4 million euros in 4Q19. Cash
Taxes amounted to 10.2 million euros in 4Q19, which compares with a value of 7.4 million euros in 4Q18 due
to greater advance payments made in the quarter.




10
Consolidated Balance Sheet



Table 6.

Balance Sheet (Millions of Euros) 2018 2019 2019 / 2018



Non-current Assets 2,528.7 2,534.3 0.2%
Current Assets 530.1 553.8 4.5%

Total Assets 3,058.8 3,088.2 1.0%


Total Shareholders' Equity 1,053.6 1,012.3 (3.9)%

Non-current Liabilities 1,164.2 1,333.3 14.5%
Current Liabilities 841.0 742.5 (11.7)%

Total Liabilities 2,005.2 2,075.9 3.5%


Total Liabilities and Shareholders' Equity 3,058.8 3,088.2 1.0%




Capital Structure and Funding

At the end of 2019, Total Net Debt, including Leasings and Long-Term Contracts (according to IFRS16)
amounted to 1,347.3 million euros. Total Debt stood at 1,106.4 million euros and was offset with a cash and
short-term investment position on the balance sheet of 12.8 million euros. At the end of 2019, NOS also had
202 million euros in unissued commercial paper programmes.

The all-in average cost of debt stood at 1.3% for 4Q19 which compares with 1.6% in 4Q18. Net Financial Debt
/ EBITDA After Lease Payments (last 4 quarters) now stands at 1.9x. NOS targets a leverage ratio in the range
of 2x Net Financial Debt / EBITDA after lease payments, which represents a solid and conservative capital
structure that NOS is committed to maintain.

The average maturity of debt at the end of 2019 was 3.1 years. Taking into account loans issued at a fixed rate,
interest rate hedging operations in place and the negative interest rate environment, as at 31 December 2019,
the proporti at a fixed rate was approximately 95%.




11
Table 7.

Net Financial Debt (Millions of Euros) 2018 2019 2019 / 2018



Short Term 219.7 84.6 (61.5%)
Medium and Long Term 825.4 1,021.8 23.8%
Total Debt 1,045.1 1,106.4 5.9%
Cash and Short Term Investments 2.2 12.8 n.a.
(1)
1,042.9 1,093.6 4.9%
Net Financial Debt
Net Financial Debt / EBITDA after lease payments (last 4 quarters) (2) 1.9x 1.9x n.a.
Leasings and Long Term Contracts 252.4 253.7 0.5%
Net Debt 1,295.2 1,347.3 4.0%
Net Debt / EBITDA 2.1x 2.1x n.a.
Net Financial Gearing (3) 55.3% 57.3% 2.0pp
(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).




Shareholder Remuneration

NOS Board has agreed the proposal of a dividend per share of 27.8 euro cents representing 100% of Net
Earnings generated in 2019 and a 6.2% dividend yield at the date of this report. Although NOS financial
structure is still well within the 2x Net Financial Debt / EBITDA After Leases threshold, and operating and
financial momentum is robust, the Board has proposed a dividend payment which is more consistent with
current limited visibility surrounding the potential operating and financial implications of the upcoming 5G
spectrum auction terms, which will only be known later this year. This proposal is subject to final approval at
the General Shareholders Meeting to be held on 16 April 2020.

Subsequent Events

On 23 January, Jorge Brito Pereira (Chairman of the Board of Directors), Paula Oliveira and Mário Leite da Silva
(Members of the Board of Directors) resigned from their positions.

On 27 January, Ângelo Paupério, Member of the Board of Directors, was nominated Chairman of the Board of
Directors.

On 4 February, NOS announced to the market that a Letter of Intent was signed between NOS and Vodafone
Portugal, framing the negotiation principles for a mobile network sharing agreement of assets that are
currently held or will be held by the aforementioned Parties.

NOS' purpose is to enhance the efficiency of its investments and achieve larger and faster coverage of the
national territory, thus delivering a reinforced service with more benefits for its customers. NOS believes this
agreement will also be a significant contribution to the economic and digital development of the country.

The proposed agreement does not imply spectrum sharing and parties will maintain exclusive strategic
control of their networks, thus ensuring independence in the definition and provision of services to their
respective customers.

The parties will negotiate on an exclusive basis with a view to reaching a definitive agreement in June 2020.



12
On 13 February, S&P Global Ratings affirmed NOS Long Term Issuer Default Rating at BBB- with a Stable
Outlook. Maintaining its investment grade long term issuer credit rating with S&P enables NOS to reinforce
the conditions to further diversify its sources of funding, extend average debt maturity and continue to
reduce the already low average cost of debt.




13
Appendix I

Table 8.

Operating Indicators ('000) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19


Telco (1)


Homes Passed 4,108.5 4,174.8 4,277.4 4,427.5 4,482.5 4,530.2 4,608.9 4,646.1
Total RGUs 9,440.6 9,483.4 9,548.9 9,580.4 9,556.5 9,583.8 9,653.0 9,722.7
o.w. Consumer RGUs 7,960.7 7,994.9 8,055.6 8,078.3 8,044.3 8,069.2 8,138.1 8,202.8
o.w. Business RGUs 1,479.9 1,488.5 1,493.3 1,502.1 1,512.2 1,514.6 1,514.9 1,519.8
Mobile 4,700.0 4,722.6 4,761.3 4,767.7 4,749.5 4,769.1 4,808.8 4,851.1
Pre-Paid 2,057.7 2,050.7 2,051.1 2,029.3 1,995.0 1,994.0 2,013.1 2,008.2
Post-Paid 2,642.4 2,671.9 2,710.2 2,738.4 2,754.5 2,775.1 2,795.6 2,842.9
Pay TV Fixed Access (2) 1,295.0 1,301.8 1,312.5 1,324.5 1,326.3 1,329.7 1,347.3 1,356.0
Pay TV DTH 319.6 314.8 309.2 298.8 290.5 287.4 284.1 2 8 2 .7
Fixed Voice 1,755.0 1,759.2 1,765.6 1,774.3 1,771.5 1,771.2 1,773.4 1,779.3
Broadband 1,339.7 1,353.7 1,369.4 1,383.4 1,386.8 1,393.8 1,406.4 1,418.6
Others and Data 31.1 31.2 31.0 31.7 31.8 32.6 33.0 34.9
3,4&5P Subscribers (Fixed Access) 1,120.4 1,132.0 1,147.3 1,163.2 1,169.9 1,176.7 1,198.2 1,209.4
% 3,4&5P (Fixed Access) 86.5% 87.0% 87.4% 87.8% 88.2% 88.5% 88.9% 89.2%
Convergent + Integrated RGUs 4,293.4 4,361.2 4,432.8 4,482.8 4,521.0 4,574.7 4,622.1 4,704.5
Convergent + Integrated Customers 855.2 868.0 880.4 889.8 896.1 907.1 914.8 930.7
Fixed Convergent + Integrated Customers as % of Fixed Access Customers 55.9% 56.7% 57.4% 57.9% 58.5% 59.2% 59.1% 59.8%
% Convergent + Integrated Customers 53.0% 53.7% 54.3% 54.8% 55.4% 56.1% 56.1% 56.8%
Residential ARPU / Unique Subscriber With Fixed Access (Euros) 44.2 44.3 44.1 43.9 44.1 44.2 44 .1 44.0
Net Adds
Homes Passed 14.5 66.3 102.6 150.1 55.0 47.7 78.7 37.2
Total RGUs 40.6 42.8 65.6 31.5 (24.0) 27.3 69.2 69.6
o.w. Consumer RGUs 14.2 34.2 60.7 2 2 .7 (34.0) 24.9 68.9 64.7
o.w. Business RGUs 26.4 8 .6 4.8 8.8 10.0 2.4 0.3 5.0
Mobile 30.0 22.6 38.7 6.4 (18.2) 19.6 39.7 42.3
Pre-Paid (22.0) (6.9) 0.4 (21.8) (34.3) (1.0) 19.1 (4.9)
Post-Paid 52.0 29.5 38 .3 28.2 16.1 20.6 20.5 47.2
Pay TV Fixed Access 2 .8 6.8 10.6 12.1 1.8 3.4 17.6 8.7
Pay TV DTH (4.7) (4.8) (5.6) (10.4) (8.4) (3.0) (3.3) (1.4)
Fixed Voice 2.2 4.2 6.4 8.7 (2.8) (0.4) 2 .3 5.9
Broadband 10.1 13.9 15.7 14.0 3.4 7.0 12.6 12.2
Others and Data 0.3 0.1 (0.2) 0.7 0.1 0.8 0.4 1.9
3,4&5P Subscribers (Fixed Access) 8.3 11.6 15.3 15.9 6.6 6.9 21.5 11.2
Convergent + Integrated RGUs - 67.8 71.6 49 .9 38.3 53.6 47.4 82.4
Convergent + Integrated Customers - 12.8 12.4 9.4 6.3 11.0 7.7 15.9
(1) Portuguese Operations.
(2) Fixed Access Subscribers include customers served by the HFC, FTTH and ULL networks and indirect access customers.




14
Appendix II

Table 9.
Profit and Loss Statement
1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019
(Millions of Euros)


Operating Revenues 383.0 389.3 395.0 408.9 1,576.2 385.3 396.4 403.4 414.0 1,599.2
Telco 365.7 374.2 376.2 389.8 1,505.9 369.8 377.8 380.4 394.3 1,522.3
Consumer Revenues 240.4 241.2 245.9 245.5 973.0 241.1 241.9 246.5 250.0 979.4
Business and Wholesale Revenues 109.0 114.0 109.0 127.6 459.6 112.7 112.8 115.3 129.3 470.1
Others and Eliminations 16.3 19.0 21.3 16.7 73.4 16.0 23.1 18.6 15.0 72.7
Audiovisuals & Cinema (1) 27.2 25.5 29.0 29.8 111.5 25.8 29.1 33.6 30.3 118.8
Others and Eliminations (9.8) (10.5) (10.2) (10.8) (41.3) (10.3) (10.5) (10.5) (10.6) (41.8)
Operating Costs Excluding D&A (225.6) (222.7) (227.3) (276.3) (951.9) (224.6) (225.2) (230.0) (278.3) (958.2)
Direct Costs (128.2) (134.4) (130.8) (152.7) (546.1) (129.4) (136.2) (133.4) (159.8) (558.8)
(2)
Non-Direct Costs (97.4) (88.3) (96.4) (123.6) (405.7) (95.2) (89.0) (96.6) (118.5) (399.3)
(3)
EBITDA 157.4 166.6 167.7 132.6 624.3 160.7 171.2 173.4 135.7 641.1
EBITDA Margin 41.1% 42.8% 42.5% 32.4% 39.6% 41.7% 43.2% 43.0% 32.8% 40.1%
Telco 143.6 153.8 153.4 118.3 569.2 147.4 158.2 157.7 121.7 585.0
EBITDA Margin 39.3% 41.1% 40.8% 30.4% 37.8% 39.9% 41.9% 41.5% 30.9% 38.4%
Cinema Exhibition and Audiovisuals 13.7 12.8 14.3 14.3 55.1 13.3 13.0 15.7 14.0 56.0
EBITDA Margin 50.6% 50.1% 49.3% 47.8% 49.4% 51.6% 44.8% 46.7% 46.3% 47.2%
Depreciation and Amortization (114.2) (102.4) (103.2) (101.6) (421.4) (97.3) (103.1) (97.5) (123.3) (421.3)
(Other Expenses) / Income 12.1 (4.5) (3.5) (5.1) (1.0) (3.3) (3.8) (6.9) (3.9) (17.9)
Operating Profit (EBIT) (4) 55.3 59.7 61.0 25.9 201.9 60.1 64.3 69.0 8.5 201.8
Share of results of associates and joint ventures (6.3) 0.6 1.3 (2.0) (6.4) 0.2 1.1 1.0 (3.3) (1.0)
(Financial Expenses) / Income (8.2) (8.7) (7.2) (6.6) (30.7) (6.4) (5.9) (6.8) (5.6) (24.8)
Income Before Income Taxes 40.7 51.6 55.1 17.3 164.8 53.9 59.4 63.2 (0.4) 176.0
Income Taxes (6.0) (7.0) (9.9) (4.5) (27.5) (11.5) (11.9) (15.3) 5.8 (32.8)
Net Income Before Associates & Non-Controlling Interests 41.0 44.1 43.9 14.7 143.7 42.2 46.5 46.9 8.7 144.3
Income From Continued Operations 34.7 44.6 45.2 12.8 137.3 42 .4 47.6 47.9 5.4 143.2
o.w. Attributable to Non-Controlling Interests 0.3 0.2 0.1 (0.1) 0.5 0.1 0.2 (0.0) 0.0 0.3
Net Income 34.9 44.9 45.3 12.7 137.8 42.5 47.7 47.9 5.4 143.5
(1) Includes cinema operations in Mozambique.
(2) Non-Direct Costs Include Commercial & Customer Related Costs and Operating & Structure Costs
(3) EBITDA = Operating Profit + Depreciation and Amortization + Integration Costs + Net Losses/Gains on Disposal of Assets + Other Non-Recurrent Losses/Gains
(4) EBIT = Income Before Financials and Income Taxes.




15
Table 10.

CAPEX (Millions of Euros) (1) 1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019



Total CAPEX Excluding Leasing Contracts 87.6 91.7 100.2 94.3 373.8 87.3 95.2 92.2 99.7 374.4
Telco 80.8 85.4 92.5 87.0 345.6 81.7 89.5 83.6 89.7 344.5
% of Telco Revenues 22.1% 22.8% 24.6% 22.3% 23.0% 22.1% 23.7% 22.0% 22.7% 22.6%
o.w. Technical CAPEX 48.6 51.7 50.6 48.7 199.6 44.9 58.1 47.5 52.6 203.1
% of Telco Revenues 13.3% 13.8% 13.4% 12.5% 13.3% 12.1% 15.4% 12.5% 13.4% 13.3%
Baseliork Telco
Netw ne Expansion / Substitution and Integration 30.4 35.6 26.6 26.1 118.7 32.8 38.5 30.6 34.2 136.0
18.2 16.0 23.9 22.6 80.8 12.1 19.6 16.9 18.4 67.1
Projects and Others
o.w. Customer Related CAPEX 32.2 33.7 41.9 38.3 146.1 36.8 31.4 36.1 37.0 141.4
% of Telco Revenues 8.8% 9.0% 11.1% 9.8% 9.7% 10.0% 8.3% 9.5% 9.4% 9.3%
Audiovisuals and Cinema Exhibition 6.8 6.3 7.7 7.3 28.2 5.5 5.6 8.7 10.0 29.9
Leasing Contracts 11.5 12.1 9.6 16.8 49.9 3.7 21.4 11.2 33.6 69.8
Total Group CAPEX 99.1 103.7 109.9 111.1 423.8 91.0 116.5 103.4 133.3 444.2
(1) CAPEX = Increase in Tangible and Intangible Fixed Assets, Contract Costs and Rights of Use




Table 11.

Cash Flow (Millions of Euros) 1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019



EBITDA 157.4 166.6 167.7 132.6 624.3 160.7 171.2 173.4 135.7 641.1
Total CAPEX Excluding Leasings (87.6) (91.7) (100.2) (94.3) (373.8) (87.3) (95.2) (92.2) (99.7) (374.4)
EBITDA - Total CAPEX Excluding Leasings 69.7 74.9 67.5 38.3 250.5 73.5 76.1 81.2 36.0 266.7
% of Revenues 18.2% 19.2% 17.1% 9.4% 15.9% 19.1% 19.2% 20.1% 8.7% 16.7%
Non-Cash Items Included in EBITDA - CAPEX and Change in
(13.5) 2.2 13.8 (10.6) (8.0) (8.3) 4.7 (6.3) 0.8 (9.2)
Working Capital
Leasings (Capital & Interest) (1) (13.7) (15.5) (15.7) (16.2) (61.3) (16.0) (15.6) (16.9) (16.5) (65.0)
Operating Cash Flow 42.5 61.6 65.6 11.4 181.2 49.1 65.2 57.9 20.4 192.6
Interest Paid (5.3) (3.8) (3.1) (2.8) (15.1) (3.0) (5.9) (3.0) (4.2) (16.0)
Income Taxes Paid 3.3 (0.9) 1.4 (7.4) (3.6) (0.4) (0.7) (7.6) (10.2) (19.0)
Disposals 0.2 (0.0) 0.7 0.4 1.3 0.4 0.4 0.5 0.0 1.4
(2)
(2.7) (2.9) 23.6 (1.4) 16.6 (3.3) (1.9) (3.4) (3.6) (12.2)
Other Cash Movements
Total Free Cash-Flow Before Dividends, Financial Investments
38.0 54.0 88.2 0.3 180.4 42.9 57.1 44.4 2.4 146.8
and Own Shares Acquisition
Financial Investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.2) (0.2)
Acquisition of Own Shares (3.1) 0.0 0.0 0.0 (3.1) 0.0 (3.5) 0.0 (3.2) (6.7)
Dividends 0.0 (153.9) 0.0 0.0 (153.9) 0.0 (179.6) 0.0 0.0 (179.6)
Free Cash Flow 34.9 (99.9) 88.2 0.3 23.4 42.9 (126.0) 44.4 (1.0) (39.8)
Debt Variation Through Financial Leasing, Accruals &
(1.7) (3.7) (4.2) (5.7) (15.3) (3.4) (0.8) (3.4) (3.4) (11.0)
Deferrals & Others
Change in Net Financial Debt (33.2) 103.7 (83.9) 5.4 (8.1) (39.5) 126.9 (41.0) 4.3 50.7
(1) Includes Long Term Contracts.
(2) Includes Cash Restructuring Payments and Other Cash Movements.




Table 12.

Net Financial Debt (Millions of Euros) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19



Short Term 99.3 199.2 164.2 219.7 180.3 2 48 .0 171.6 84.6
Medium and Long Term 920.8 925.4 875.7 825.4 826.1 893.6 948.8 1,021.8
Total Debt 1,020.1 1,124.5 1,040.0 1,045.1 1,006.4 1,141.6 1,120.4 1,106.4
Cash and Short Term Investments 2 .3 3.1 2 .5 2 .2 3.0 11.3 31.2 12.8
(1)
1,017.7 1,121.4 1,037.5 1,042.9 1,003.4 1,130.3 1,089.3 1,093.6
Net Financial Debt
(2)
1.8x 2.0x 1.8x 1.9x 1.8x 2.0x 1.9x 1.9x
Net Financial Debt / EBITDA after lease payments (last 4 quarters)
Leasings and Long Term Contracts 264.0 259.9 253.9 252.4 240.6 245.8 239.8 253.7
Net Debt 1,281.7 1,381.3 1,291.4 1,295.2 1,244.0 1,376.1 1,329.1 1,347.3
Net Debt / EBITDA 2.1x 2.2x 2.1x 2.1x 2.0x 2.2x 2.1x 2.1x
Net Financial Gearing (3) 53.9% 58.3% 55.6% 55.3% 53.3% 59.0% 57.0% 57.3%
(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).




16
Disclaimer
Disclaimer

This presentation contains forward looking information, including statements which constitute forward
looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These
statements are based on the current beliefs and assumptions of our management and on information
available to management only as of the date such statements were made. Forward-looking statements
include: (a) information concerning strategy, possible or assumed future results of our operations, earnings,
industry conditions, demand and pricing for our products and other aspects of our business, possible or
future payment of dividends and share buyback program; and (b) statements that are preceded by, followed
by or include the wor lieves pa inten is confiden , n timates
o , and the negatives of such terms or similar expressions. These statements
are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause
the assumptions and beliefs upon which the forwarding looking statements were based to substantially differ
from the expectation predicted herein. These factors, risks and uncertainties include, but are not limited to,
changes in demand for the company services, technological changes, the effects of competition,
telecommunications sector conditions, changes in regulation and economic conditions. Further, certain
forward looking statements are based upon assumptions as to future events that may not prove to be
accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives,
expectations, estimates and intentions expressed or implied in such forward-looking statements. Forward-
looking statements speak only as of the date they are made, and we do not undertake any obligation to
update them in light of new information or future developments or to provide reasons why actual results may
differ. You are cautioned not to place undue reliance on any forward-looking statements. NOS is exempt from
filing periodic reports with the United States Securities and Excha uant to Rule
12g3-2(b) under the Securities Exchange Act of 1934, as amended. Under this exemption, NOS is required to
post on its website English language translations of certain information that it has made or is required to
make public in Portugal, has filed or is required to file with the regulated market Eurolist by Euronext Lisbon or
has distributed or is required to distribute to its security holders. This document is not an offer to sell or a
solicitation of an offer to buy any securities.




17
Enquiries


Chief Financial Officer: José Pedro Pereira da Costa

Phone: (+351) 21 799 88 19



Analysts/Investors: Maria João Carrapato

Phone: (+351) 21 782 47 25 / E-mail: ir@nos.pt



Press: Isabel Borgas / Irene Luis

Phone: (+351) 21 782 48 07 / E-mail: comunicacao.corporativa@nos.pt




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