PHAROL, SGPS S.A. informs on Notice to the Market disclosed by Oi - 3Q21 Results

Announcement | Lisbon | 11 November 2021

Notice to the Market disclosed by Oi - 3Q21 Results

PHAROL, SGPS S.A. hereby informs on the 2021 third quarter results disclosed by Oi, S.A., as detailed in the company's document attached hereto.

Earnings Review

INVESTOR RELATIONS

N o v e m b e r 1 1 , 2 0 2 1

EARNINGS REVIEW OI - 3Q 2021

N O V

2 1

IMPORTANT NOTICE

This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the applicable Brazilian regulations. Statements that are not historical facts, including statements regarding the beliefs and expectations of Oi S.A. - under Judicial Reorganization ("Oi" or "Company"), business strategies, future synergies, cost savings, future costs and future liquidity are forward-looking statements.

The words "anticipates", "intends", "believes", "estimates", "expects", "forecasts", "plans," "aims" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. There is no guarantee that the expected events, tendencies or expected results will actually occur. Such statements reflect the current views of the Company's management and are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, corporate approvals, operational factors and other factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. All forward-looking statements attributable to the Company or its affiliates, or persons acting on their behalf, are expressly qualified in their entirety by the cautionary statements set forth in this notice. Undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made.

Except as required under the Brazilian and U.S. federal securities laws and the rules and regulations of the CVM, the SEC or other regulatory authorities in other applicable jurisdictions, the Company and its affiliates do not have any intention or obligation to update, revise or disclose any changes to any of the forward-looking statements herein in order to reflect current or future events or their developments, changes in assumptions or changes in other factors affecting the forward-looking statements herein. You are advised, however, to consult any further disclosures the Company makes on related subjects in reports and communications that the Company files with the CVM and the SEC.

1

REVIEW OI - 3Q 2021

highlights

OPERATIONAL EXECUTION ON TRACK, WITH FIBER KEEPING STRONG PACE, RESIDENTIAL REVENUE CONFIRMING SOLID TURNAROUND, DECLINING COSTS AND MARGIN EXPANSION

Leading HPs additions in 8	Leading net additions in 7
of the last 10 quarters	of the last 8 quarters

EARNINGS

FIBER

REVENUE

EBITDA

13.5 MM	1.4 MM
Total	New HPs
HPs	in 3Q21

+2.4% yoy increase of

residential revenue

fiber revenues growing more than legacy decline

1.4 BN	32.3%
+0.5% yoy and	Margin
+1.4p.p. yoy and	CASH
+14% qoq
+3.0p.p. qoq

3.2 MM	326 k		24%
Total	New HCs		Average
HCs	in 3Q21		take-up
+6.5% yoy growth of SME revenues
	+3.4% increase qoq. Fiber also supporting revenue
	growth in the segment
R$ 4.1 BN	R$ 2.0 BN	R$ 4.5 BN	-R$3.8 BN
	Oi Mobile	Bond	DIP
	Bridge	refinancing	Payment

N O V

2 1

	Approval of the	ANATEL Technical	CADE's General Superintendency
	report recommended
	partial sale of UPI	report recommended approval of the
JR PLAN	approval of the UPI
InfraCo by CADE.	UPI Mobile sale
Mobile sale

2

- 3Q 2021

fiber

FIBER EXECUTION CONTINUES SOLID ON ALL PLAN METRICS, WITH ANNUALIZED REVENUE ALREADY ABOVE BRL 3 BN

EARNINGS REVIEW OI

N O V

2 1

HOMES PASSED (HP), Million

1.4m HPs

in 3Q21

+72%

14.5 -

12.0

13.5

15.0 M

7.9

3Q20

2Q21

3Q21

4Q21E

Guidance

HOMES CONNECTED (HC), Million

1.4m HCs

32%

in 1 year

CAGR

113%

CAGR

~8.1M

2.8

3.2

~3.5M

1.7

3Q20

2Q21

3Q21

2021E

2024E

Take

22%

24%

24%

24%

26%

Up1

Guidance

FIBER ARPU, R$

1 GBPS

500mbps

400mbps

200mbps

Upselling continues to play a role in boosting ARPU. In 3Q21,

10.5% of the Fiber customer

base had speeds ≥ 400Mbps,

and 19% of the net additions

were ≥ 400Mbps, 3p.p. over last quarter.

+3.1%

8789

2Q21 3Q21

FIBER REVENUES, R$ Million

Annualized fiber revenue

> BRL 3.2 BN

100%

805

6.6%

402

B2B4.8% 93.4%

95.2%

Residential

3Q20 3Q21

3