Presentation Isabel Martinho Sustainability Ii Debate Lisbon 2008

1. Presentation Isabel Martinho Sustainability Ii Debate Lisbon 2008 Portugal Telecom Sustainability approach at Portugal Telecom “Challenges of Integrated Communications” EACD, Regional Debates Lisboa, 4th December 2008 Our mission To provide telecommunications and multimedia services of recognized value to the customers, through a continuous technological innovation, qualified and motivated resources, and with respect to the environment and society “Innovate, change, improve, is our tradition”

2. Who we are • The leading telecommunications services provider in Portugal • Committed to generate and distribute shareholder value and remaining one of the most solid telecommunications operator. • Activity covers all segments of the telecommunications sector: fixed, mobile, data and corporate solutions (voice, internet, TV) • Company with the most number of transactions in Euronext Lisbon • Quoted on the New York Stock Exchange • 30.000 employees all over the world • 65 million customers “Innovate, change, improve, is our tradition” Our goals • Position PT as a fully integrated provider of telecoms and multimedia. • Retain leadership and a strong market share of best clients in Portugal, South America and Africa • Be in the top of the most efficient Telecommunications Operators in Europe • Attract and retain the best human talent available • Be sustainable by all means, specially regarding digital inclusion as a way to build a knowledge and environment friendly society. “Innovate, change, improve, is our tradition” Who we are • The leading telecommunications services provider in Portugal • Committed to generate and distribute shareholder value and remaining one of the most solid telecommunications operator. • Activity covers all segments of the telecommunications sector: fixed, mobile, data and corporate solutions (voice, internet, TV) • Company with the most number of transactions in Euronext Lisbon • Quoted on the New York Stock Exchange • 30.000 employees all over the world • 65 million customers “Innovate, change, improve, is our tradition” Our goals • Position PT as a fully integrated provider of telecoms and multimedia. • Retain leadership and a strong market share of best clients in Portugal, South America and Africa • Be in the top of the most efficient Telecommunications Operators in Europe • Attract and retain the best human talent available • Be sustainable by all means, specially regarding digital inclusion as a way to build a knowledge and environment friendly society. “Innovate, change, improve, is our tradition”

3. Where we are And, what we do

4. Principles, guidelines and indicators that we follow Organizations and agreements Reporting guidelines Indicators and benchmarks Internal conduct and procedures PT Code of Ethics Code of Ethics for Senior Financial Officers Whistle blowing procedures Management systems audit and certified according: INOVAÇÃO Principles, guidelines and indicators that we follow Organizations and agreements Reporting guidelines Indicators and benchmarks Internal conduct and procedures PT Code of Ethics Code of Ethics for Senior Financial Officers Whistle blowing procedures Management systems audit and certified according: INOVAÇÃO

5. Our sustainability approach Keep on creating long term value for all the Purpose stakeholders Improve the policies and procedures through Strategy all company businesses regarding 3 objective points: triple bottom line Economical Environmental Social Strategic guidelines Sustainability is integrated into business company strategy and totally aligned with sector specifications and needs Pillars of Sustainability : Economical, Social, Environmental Implementation of the sustainability strategy through PT companies in Portugal Sustainability Management through the Sustainability Committee Identification and alignment with international best practices Assessment and supervision of strategy implementation Improvement of Social Responsibility enabling the digital inclusion, innovation environment friendly options Our sustainability approach Keep on creating long term value for all the Purpose stakeholders Improve the policies and procedures through Strategy all company businesses regarding 3 objective points: triple bottom line Economical Environmental Social Strategic guidelines Sustainability is integrated into business company strategy and totally aligned with sector specifications and needs Pillars of Sustainability : Economical, Social, Environmental Implementation of the sustainability strategy through PT companies in Portugal Sustainability Management through the Sustainability Committee Identification and alignment with international best practices Assessment and supervision of strategy implementation Improvement of Social Responsibility enabling the digital inclusion, innovation environment friendly options

6. Operating areas Economical level Environmental level Social level • Corporate Governance • Eco - Efficiency • Employee Policies • Risk Assessment • Environmental Reporting • Talent attraction and retention • Codes of Conduct • Environmental management system • Volunteering • Customer Relationship Management • Climate Strategy – • Citizenship / Philanthropy Energy efficiency and • Brand Management enabling e – services and • Stakeholder Engagement solutions • Services Development • Supplier standards • Impact of Telecom services • Digital Inclusion Identified Stakeholders Financial Community Customers Regulatory entities Suppliers Media Employees Community Operating areas Economical level Environmental level Social level • Corporate Governance • Eco - Efficiency • Employee Policies • Risk Assessment • Environmental Reporting • Talent attraction and retention • Codes of Conduct • Environmental management system • Volunteering • Customer Relationship Management • Climate Strategy – • Citizenship / Philanthropy Energy efficiency and • Brand Management enabling e – services and • Stakeholder Engagement solutions • Services Development • Supplier standards • Impact of Telecom services • Digital Inclusion Identified Stakeholders Financial Community Customers Regulatory entities Suppliers Media Employees Community

7. Operating model Community Suppliers Information Customers Alignment Commitments Communication Regulatory entities Relationship Financial Media Community Employees Sustainable conduct Conduct profile Action drivers Stakeholder Transparency Engagement Communication Sustainability Rigour Channels Report Ethics Portugal Telecom Foundation Operating model Community Suppliers Information Customers Alignment Commitments Communication Regulatory entities Relationship Financial Media Community Employees Sustainable conduct Conduct profile Action drivers Stakeholder Transparency Engagement Communication Sustainability Rigour Channels Report Ethics Portugal Telecom Foundation

8. Expected outcome Measurable Performance Economical Environmental Social indicators indicators indicators =Value Group Sustainability Commitments • Financial growth with respect for • Building the community and Knowledge and • Improvement of Information Society environment Eco - efficiency • Decision making • Social support • Energy strategy process, considering the stakeholders’ • Talent attraction feedback and retention Economical Environmental Social Expected outcome Measurable Performance Economical Environmental Social indicators indicators indicators =Value Group Sustainability Commitments • Financial growth with respect for • Building the community and Knowledge and • Improvement of Information Society environment Eco - efficiency • Decision making • Social support • Energy strategy process, considering the stakeholders’ • Talent attraction feedback and retention Economical Environmental Social

9. Environmental, Health & Safety procedures Training programs for all employees Awareness campaigns for all employees regarding environmental and friendly procedures Sustainable Procurement Model - supplier selection and contracting includes environmental and human rights respect procedures Energy audit to PT offices Implementation of a long term energy strategy based on green light, free cooling and renewable energies Sponsorship of NGOs that gather the electric and electronic waste as well as other accessories like toners and ink cartridges, all over the country Commercial packages with environmental procedure labels Enable the market to adopt e-solutions Millenium Development Goals 1.Eradicate extreme poverty and hunger 2.Achieve universal primary education 3.Promote gender equality and empower women We are committed 4.Reduce child mortality 5.Improve maternal health 6.Combat HIV/AIDS, malária and other diseases 7.Ensure environmental sustainability 8.Develop a global partnership for development In cooperation with the private sector, make the new technology benefits available – especially information and communications technologies Environmental, Health & Safety procedures Training programs for all employees Awareness campaigns for all employees regarding environmental and friendly procedures Sustainable Procurement Model - supplier selection and contracting includes environmental and human rights respect procedures Energy audit to PT offices Implementation of a long term energy strategy based on green light, free cooling and renewable energies Sponsorship of NGOs that gather the electric and electronic waste as well as other accessories like toners and ink cartridges, all over the country Commercial packages with environmental procedure labels Enable the market to adopt e-solutions Millenium Development Goals 1.Eradicate extreme poverty and hunger 2.Achieve universal primary education 3.Promote gender equality and empower women We are committed 4.Reduce child mortality 5.Improve maternal health 6.Combat HIV/AIDS, malária and other diseases 7.Ensure environmental sustainability 8.Develop a global partnership for development In cooperation with the private sector, make the new technology benefits available – especially information and communications technologies

10. . EU Lisbon Strategy Based on a strategy aiming the promotion of development and the reinforcement of competitiveness in Portugal We are committed ST RATEGIC AXES Knowledge Technology Innovation Knowledge Society PT is deeply involved in the development of the knowledge society, through micro processor computers, mobile broadband programmes, enabling the new information technologies and training programmes on web uses and contents: Broadband access and bandwidth increase (fixed and mobile) Accessibility of citizens with special needs Awareness programs related with the use of the information technologies Awareness programs related with the adequate use of contents

11. . Knowledge Society PT’s action program Global coverage in Portugal Global Diversity of (fixed and mobile) Training commercial Broadband programs offer connectivity School s Associ ati ons Chil dren Peopl e with Hospit al s speci al needs NGO’s Peopl e El derl y Diversity of commercial offer Price simulator Pre-paid services Services adequate to each customer Products and profile services adequate to Convergent people with fixed/mobile special needs offer Diversity of price plans Special conditions for elderly and retired people

12. . Special products and services Special needs Special offer Mobile for blind people Incoming call light signalling Vision Portable amplifier Decibel Speech Reading of written texts Text telephone Cognition Emergency Active voice Neural-motor dysfunction Braille bill 118 Braille Hearing Line with fixed destination Aladim Program Special products and services

13. . Awareness programs Guarantee the adequate use of telecom services Guarantee the adequate use of web and TV services and contents Main goals Encouragement of the use of search web tools and the creation of friendly and adequate contents Make known the multimedia and broadband capacities Increase the knowledge level of the population and consequently increase the digital inclusion Awareness and special programs Education Innovation Health care Safety

14. . Internal Communication Tools Internal Communication Brand

15. . Educational initiatives Hardware and connectivity for educational system and schools Educational initiatives

16. . Innovation initiatives Minimize carbon footprint Health and care initiatives Telemedicine and health management programmes

17. . Safety initiatives Environmental safety and human security Lifestyle initiatives

18. . Media Media

19. . Media PT assume que li dera a revol ução di git al nos Açores Relevant issues Creation of Sustainability Committee Creation of Portugal Telecom Foundation Subscription of ETNO environmental and sustainability principles Subscription of United Nations Global Compact principles Subscription of UNI CSR principles Publishing the Sustainability Report (annually) Integration as member of FTSE 4 GOOD Índex Rewarded as Family Responsible Company Rewarded as the best CFO of European Telecommunications sector and the best Investor Relations Officer of Telecommunications sector Rewarded , at national level, as Citizenship Company Management informations systems certified according to international standardization: Quality, Environment, Hygiene, Health & Safety - ISO 9001, ISO 14001, OSHAS 18001

20. . Portugal Telecom We are grateful for your attention and interest Isabel Martinho “Challenges of Integrated Communications” EACD, Regional Debates Lisboa, 4th December 2008