Sonae Circle18 March 2008

Full-year consolidated performance

Strategy going forward

Key Highlights

FinancialRevenues 892.7 M€EBITDA 162.0 M€Net Income 36.8 M€Total CAPEX 235.8 M€Operational Cash Flow 55.5 M€Net Debt to EBITDA 1.9x

OperationalThe highest growth in Costumer Revenues in the last 6 years +15.9%

The highest growth in Optimus’ Costumer Base since 2001 +11.2%

Duplication of total Services at Sonaecom Fixed +114.2%

The fastest growing Portuguese telecoms operator in 2007Reinforcement of the leading position of WeDo in the global Revenue Assurance market

Full-year Consolidated Performance

Operational Highlights - Mobile

Total Subscribers grew by 11.2%

Active Customers (90 days) grew by 10.6%

Data Revenues 17.7% of Service Revenues (19.4% in 4Q07)

The strongest Net Additions since 2001:

21922353

2602224249

292 2894

2005 2006 2007

Mobile Customers EoP (´000)

Customers BOP Net Additions EOP 2007

Fixed-mobile convergence

Sonaecom pioneering the expansion of mobile frontiers

Full-year Consolidated Performance

Operational Highlights - Wireline

Total Services grew by 2.1x to 815.6k - Growth of 17% L-f-L

Direct Services grew by 81.4%- Growth of 36% L-f-L- Represented 62.6% of total services- 70.1% of Customer Revenues generated through Direct Access

The Significant Organic and non-Organic Growth:

93.861281.541

510.673177.062

99.188

304.950

2005 2006 2007

Focus on Broadband proving to be the right strategy

271 463380 729

815 623

Direct

Indirect

Sonaecom has an extensive network footprint as the basis of its strategy

- 55% coverage or 1.7m lines coverage- 169 COs with direct connectivity- 161 COs ADSL2+ enabled- 110 COs IPTV ready

Lisbon

Porto

Full-year Consolidated Performance

Sonaecom, the catalyst of growth

Source: ANACOM

EOPs 4Q06

PTM25.2%

Cabovisão10.3%

SCF9.2%Others

9.7%

PTC45.6%

PTM24.6%

Cabovisão10.1%

SCF15.3%Others

6.1%

PTC43.9%

EOPs 4Q07

Broadband Market Shares

Significant growth in broadband access (+13% yoy = 14.8% penetration)

Full-year Consolidated Performance

614.2529.8498

203.3216

199.410289.3

79.1

2005 2006 2007

813,6

816 822,4892,7

733714

Customer Rev.Operator Rev.Equipment Sales

Service Rev.Turnover

Turnover

Turnover 5.3%Customer Revs 11%

Optimus + 7.9%SCF + 48.2%SSI (1) + 18.6%Público (2) - 8.4%

Turnover grew by 8.6% to 892.7m driven by Customer Revenue growth (+15,9%)

Breakdown of Customer revenue growth:

(1) Excluding Equipment Sales(2) Advertising

Full-year Consolidated Performance

Like-for-like growth:

162.0

152.1

156.8

18.1%19.1%18.6%

146

148

150

152

154

156

158

160

162

164

2005 2006 20070,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

EBITDA EBITDA Margin

EBITDA & EBITDA Margins

+3.1%

+3.3%

EBITDA

EBITDA improved by 3.3% driven by strong operational results at both our Wireline and SSI divisions

Optimus -9.1% (MTRs, roaming,Handset subsidies)

SCF record EBITDA of €9.8m

SSI 32.8% (L-f-L)

Público fixed costs down by €4m p.a., EBITDA lossmuch lower

Full-year Consolidated Performance

Net Results (Group Share)

Net Results (Group share) were positive €36.8m… driven by tax line

EBT positive by €0.5m

Higher EBITDA (3,3%)

Higher D&A (3,3%) due to higher asset base

Higher Net Financial Charges impacted by 7.2m write-off of up-front fees

Significant tax benefits-9.7

4.0

36.8

2005 2006 2007

Net Results (GS)

Full-year Consolidated Performance

Operating Capex increased by 21.4% driven primarily by network investments in our Telecom businesses

Operating Capex

Excluding non-cash items, Operating Capex decreased by 6.1%, representing 14.1% of Turnover125.9

116.4134.1 36.9

14.1%16.0%

14.0%

2005 2006 2007

Equip. Swap & Backbone LeasesOp. CapexAs % Turnover

162,8

Full-year Consolidated Performance

Working Capital improved significantly, reflecting higher credit from Trade Creditors at our Telecoms businesses

EBITDA – adj. Oper Capex 36.1m

Var. W/Capital 12.8m

Other 6.6m

Operating Cash Flow improved by 8.3% to €56m

Operating Cash Flow

55.5

45.451.3

0

10

20

30

40

50

60

2005 2006 2007

Operating Cash Flow

+13%+8.3%

Full-year Consolidated Performance

Refinancing of Optimus’ debt facility through a 250m committed underwritten CPP with guaranteed subscription and final maturity of 5 years

(*) Excluding 7.2m fees written-off would have been 12.8x

Capital Structure

Conservative Capital Structure

Net Debt/EBITDA (1) 1.6x 1.8 x 1.9xInterest Cover 12.9x 10.6x 5.9x (*)

Debt :Debt+Equity 41.1% 33.8% 29.6%

Full-year Consolidated Performance

(1) annualised

Net Debt

Gross Debt

Liquidity

310338251.6

84126209.4

2005 2006 2007

394464461

Full-year consolidated performance

Strategy going forward

Market DynamicsKey Telecoms Players

* - Small cable companies Pluricanal, Bragatel and TvTel are being acquired by PTM

The Portuguese Telecoms market now comprises 4 main players eachoffering Voice, Broadband and Pay TV over Fixed and Mobile services

Strategy going forward

VOICEFIXED Mobile

BROADBANDFIXED Mobile

PAY TVFIXED Mobile

SONAECOMPTPTMVODAFONE

xx

x?

xx

x?

xx

x?

x

ANNOUNCEDANNOUNCED

CABOVISÃOONIAR TELECOMOTHER CABLE *

Regional or Niche Players

National Players

Market Dynamics Revenues Market Shares Evolution

Notes:(1) Telecoms revenues only include telecommunications services revenues excluding, in the case of PTM, cinemas and audiovisuals revenues(2) 2006 revenues are adjusted considering Sonaecom acquisitions of ONI and Tele2

Source: Companies annual reports and Sonaecom estimates

Sonaecom strengthened its market position during 2007

51.261.563.6

9.213.511.6 13.1

19.4 19.9 20.9

5.25.55.6

2005 2006 2007

Portuguese Telecoms Market Evolution (1)

(2)

PT

PTM

Sonaecom

VodafoneOther

Strategy going forward

Sonaecom’s improved position fuelled by growth in our wireline business

Source: Companies Data, Analysis Research, Merrill Lynch, Screen Digest, Sonaecom estimates

Market Dynamics Telecoms Market Shares

Fixed Voice

Broadband

Mobile

Pay TV

PT (excl. PTM)

Sonaecom(incl. ONI+Tele2) PTM Vodafone Market Value

2006-2010

2.600 - 2.250

400 - 560

3.470 - 3.800

450 - 660

(M€)CAGR 06-10

(3,5%)

8,8%

2,3%

10%

Revenues 2006 3.565 912 667 1.362 6.920 – 7.270

70% 21% 0% 0%

0%25%15%47%

44% 20% 0%36%

0%79%0%0%

Strategy going forward

Full integration of network / platforms / organizationIntegration of acquired Businesses Seek further operating and financial efficiencies

Increase mobile brand presence/investmentFurther develop substitution, integrated and convergent offers / market approach

Accelerate investments in our NetworkImprove Customer ManagementLead innovation in products and services

NGN Strategy Initiating investment in FTTH deployment

IMPROVE CUSTOMER MANAGEMENTAND LEADINNOVATION

The Future started yesterdayThe Future started yesterday……

Accelerate Growth and Increase Market Share

Focus on Profitability

Superior CustomerExperience

Key Strategic Goals and Guidelines for Telco

Strategy going forward

Fibre Strategy An Ambitious Investment Plan

A large scale investment240 million Euro investment in 3 years

1 million homes passed

Coverage of more than 25% of the Portuguese population

Payback: 9 years

Break-even: year 5

Seeking an adequate return on investment allowing for dilution of fixed costs via access network sharing approach

Strategy going forward

Fibre Strategy Natural Evolution for Sonaecom

Strategy going forward

8 Point Rationale1. Leading alternative operator in direct Broadband access - over 15%

market share

2. Benefit from our home-networking experience in the deployment of the ULL network

3. The technological know-how, strengthened by concrete field experiences (Lisbon and Porto)

4. A future-proof technological option, supported on partnerships established with leading suppliers (Nokia/Siemens and Huawei)

5. Agreements signed with reputed local network deployment outsourcers (CBE/RedTel)

6. Ensure increased transmission capacity to Optimus base stations

7. Convergent, mature and integrated organisation

8. The necessary size, financial capacity and shareholder support

Sonae Circle18 March 2008