RESULTS PRESENTATION 9 NOVEMBER 2012 Disclaimer This presentation - PowerPoint PPT Presentation

3Q12 RESULTS PRESENTATION 9 NOVEMBER 2012

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 buy back program; and (b) statements that are preceded by, followed by or include the words “ believes ” , “ expects ” , “ anticipates ” , “ intends ” , “ is confident ” , “ plans ” , “ estimates ” , “ may ” , “ might ” , “ could ” , “ would ” , 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 ’ s 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. Additionally, some of these statements refer to board proposals to be submitted to ZON - Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. ( “ Multimedia ” or “ ZON ” ) AGM and subject to (i) its approval by Multimedia ’ s shareholders, (ii) the market conditions and (iii) the ZON ’ s financial and accounting position as revealed in the financial statements approved by Multimedia ’ s AGM. 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. ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission ( “ SEC ” ) pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. The SEC file number for PT Multimedia ’ s exemption is No. 82-5059. Under this exemption, ZON Multimedia is required to post on its website English language translations, versions or summaries 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 presentation is not an offer to sell or a solicitation of an offer to buy any securities.

3Q12 Highlights  Resilience of Pay TV, Broadband and Voice revenues  “ ZAP ” continues to post very positive quarter on quarter growth, reaching Net Income breakeven ahead of schedule  Strong improvement of EBITDA-CAPEX driven by the stable performance of EBITDA and the decrease of CAPEX, as forecast  For the 2nd consecutive year, ZON ranked Best Quality of Service in TV and Broadband by ANACOM versus its largest competitor  The best performing Portuguese company at USA Contact Center World awards: 2 Gold and 2 Silver medals  Leading in innovation with the launch of “Timewarp” 3

ZON has the best 3P value proposition driven by IRIS’ innovative, unique features with outstanding customer feedback and leading broadband speeds

IRIS – The most advanced features Free TIMEWARP Free RESTART TV Free ZON ONLINE Personalized Facebook Network PVR 7 days with Over 70 channels for up Television on the PC, Profiles, configure Share your simplified record to 2 hours iPad and iPhone premium channels, preferences and your friends’, using management videoclub and packages whenever you like the UI Advanced Search Advanced recording FREE APPS HD VOD The largest and best Quick and easy to find Simultaneously record Interactive TV APPS The largest offer with HD content offer (43 navigation entire series and the most recent movies channels) programmes 5

IRIS – The Best 3P product in the market Why choosing IRIS over any other 3P bundle? 1) Only award winning interface for its design and usability 2) Most advanced cloud-based TV solution with innovative and unique TV features like Timewarp Broadband with 100Mb/s – several times more than ADSL 3) Access to 500,000 hotspots free Wi-FI – by far the largest 4) network in Portugal 5) Largest number of HD channels in the market 6) Largest VOD library with over 10,000 titles 7) Unlimited calls including 50 countries 8) Watch content on Smartphone, Tablet and PC 6 6

IRIS – The Best TV Experience 7

IRIS – Timewarp is a unique feature What our customers are saying “I only “I don’t have to worry “C hoice no watch about missing a longer depends what I programme as I have 7 on time of day want” days to go back and but on what I watch it” want to watch” “I can watch programmes “I have more recommended freedom to by friends and watch TV, no colleagues, time after they restrictions” were shown on TV” “The new “Timewarp is fantastic way to and watching TV is cool record TV” again 8 8

IRIS – The Best TV Experience extended to all devices ZON Online - Available on the PC, iPad and iPhone for all IRIS customers  Live TV  Restart TV for 36 channels (PC)  Videoclub rental and viewing (PC)  Schedule recording to watch later on TV  Navigate full EPG  Intelligent search for content 9 9

​ Leading Innovation in Broadband and Voice The largest Wi-Fi network in Portugal  Free Wi-Fi access to 500,000 hotspots in Portugal, 7 million worldwide  Free for ZON Broadband customers  On a monthly basis, 23% of Broadband customers used the service with an average of 2 sessions per day per user and 69% of hotspots generated traffic 10 10

​ Leading Innovation in Broadband and Voice Putting Fixed Voice back on the map  Unlimited fixed voice calls to 50 countries, nights and weekends  ZON PHONE APP – Fixed calls from anywhere in the world using your home phone number and tariff plan, over a Wi-Fi network  Fixed phone voice messages can be accessed away from home over a computer  Dual number acount allowing more than one phone number per household 11 11

3Q12 Operating Review

Good Triple Play take-up High take-up of high-end IRIS bundles continues Triple Play Customers and Penetration of Cable IRIS customers and Penetration of Cable Base Base [Thousands, %] [Thousands, %] Net Adds [Thousands] 28.3 17.9 18.8 32.1 21.9 42.6 31.4 751.7 0 25 80 0 688.8 0% 15 % 30 193.0 70 0 603.5 62.4% 0 20 13 0% % 25 161.5 60 59.3% 0% 11 % 20 50 0 0 15 118.9 16.0% 97.0 40 0 % 90 15 % 13.3% 51.9% 10 0 65.0 30 9.9% % 70 10 % 46.2 8.2% 20 0 28.3 50 5.6% 50 % % 05 4.0% 10 0 2.4% 00 % 00 00 30 % 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q10 3Q11 3Q12  751.7 thousand Triple Play customers, up 9.1% yoy  193 thousand IRIS customers, 16% of cable customer base, 31.4k net adds in 3Q12 13

Robust net additions in Broadband and Fixed Voice Broadband Subscribers Fixed Voice Subscribers [Thousands, % of Penetration of Cable Base] [Thousands; % of Penetration of Cable Base] 766.2 960.2 % 70 85 % 80 0 725.0 1, 00 0 844.0 80 % 65 % 666.4 732.3 0 70 75 % 63.6% 77.9% 80 0 60 % 62.4% 70 % 60 0 % 55 57.3% 70.7% 60 0 65 % % 50 50 60 % 61.7% 40 0 45 % 55 % 0 40 40 % 50 % 20 0 30 0 35 % 45 % 0 20 % 30 00 40 % 3Q10 3Q11 3Q12 3Q10 3Q11 3Q12  766.2 thousand Broadband subs  960.2 thousand Fixed Voice subs  63.6% penetration of customer base  77.9% penetration of cable customer base  57% offers greater than 20 Mbps and 38% higher or equal to 30 Mbps 14

ARPU under pressure from less premium channel subscriptions Basic, Premium and Blended ARPU [3Q11 = Base 1]  Basic ARPU from core TV, BB and Voice services decreased 3% yoy 1.10  Adjusting for the impact of entry level 1.05 offers, basic ARPU would have remained nearly flat – a 0.9% decrease 1.00 -3.0% 0.95 -4.8%  Success of lower ARPU, entry level, 0.90 offers and continued pressure from 0.85 -14.3% discretionary premium ARPU (-14.3%) led 0.80 to decline in Blended ARPU of 4.8% 3Q11 4Q11 1Q12 2Q12 3Q12 Blended ARPU Basic ARPU Premium ARPU  ≈ 50 thousand new entry -level customers between 3Q11 and 3Q12, due to analogue switch-off 15