NOS SGPS (NOS) investor relations material

Executive summary

• Revenue grew 1.9% year-over-year to €460.2M, driven by IT (+16%) and Cinema/Audiovisuals (+7%), offsetting a slight Telco contraction (-0.2%).

• EBITDA rose 3.1% to €203.3M, with margin expanding 0.5pp to 44.2%, reflecting operational efficiency, disciplined cost management, and AI-driven transformation.

• Net income excluding non-recurring items rose 7.9% to €59.7M; total net income up 4.7% to €62.0M, supported by improved EBITDA and lower depreciation/amortization.

• S&P upgraded the credit rating to 'BBB' with a stable outlook, citing robust operations, cost optimization, and stable outlook.

• GenAI-driven efficiency and R&D leadership highlighted, with AI programs scaling across operations and over 140 use cases identified.

Financial highlights

• Operating revenue: €460.2M (+1.9% YoY); EBITDA: €203.3M (+3.1% YoY); EBITDA margin: 44.2% (+0.5pp YoY).

• Free cash flow excluding non-recurring items increased 22.3% to €79.5M; total free cash flow before dividends/investments: €91.8M (+10.1% YoY).

• Net income excluding non-recurring items: €59.7M (+7.9% YoY); total net income: €62.0M (+4.7% YoY).

• Net financial debt reduced to €930.5M; leverage ratio improved to 1.35x.

• Average cost of debt reduced to 2.8%, down 0.5pp YoY; liquidity position at €347M as of March 31.

Outlook and guidance

• CapEx expected to continue declining, with no material impact from recent storms; FTTH expansion nearing completion by year-end.

• B2B segment expected to maintain healthy growth; headwinds in consumer ARPU to persist.

• Price increases to have further positive impact in coming quarters; storm effects fading.

• S&P expects continued robust operating performance and cost optimization to sustain credit metrics.

• Dividend policy maintained, with €0.45/share paid in May 2026.