Portugal telocom technology and innovation

1. Portugal Telecom | Technology & Innovation Conference | 0
BUSINESS TO BUSINESS
Lisbon, 29 & 30 October 2012

2. Portugal Telecom | Technology & Innovation Conference | 1
IMPORTANT NOTICE
This release contains forward-looking statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are not statements of historical
facts, and reflect goals of the company's management.
The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts,”
"projects" and "targets" and similar words are intended to identify these forward-looking
statements, which necessarily involve known and unknown risks and uncertainties. Accordingly,
the results of operations of the company to be achieved may be different from the company's
current goals and the reader should not place undue reliance on these forward-looking
statements. Forward-looking statements speak only as of the date they are made, and the
company does not undertake any obligation to update them in light of new information or future
developments.
SOURCE: Source

3. Portugal Telecom | Technology & Innovation Conference | 2
BUSINESS TO BUSINESS
FROM TELCO TO ICT
OPERATOR
João Paulo Cabecinha | Head of corporate offering

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PT IS THE BEST ICT&CLOUD PLAYER IN PORTUGAL
Voice and
Circuits
1990s
Data and
Internet
2000
IT and Data
centre
2005
Cloud
2010
Business & Cost
transformation
2012
PT has a track record of successful
transformation
Can we once again deliver and
capture the new growth path?

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DIFERENT CUSTOMER REQUIREMENTS
Technology as a service,
aligned with business
needs
Triple play & mobility
High speed everywhere &
convenience
Excellence in service
support & affordable
technology
500
400
Simplicity & cost
Convenience,
performance & cost
Efficiency & business
transformation
Flexibility,
mobility & cost
SoHo
Small
enterprises
Medium
enterprises
Large
organisations
Revenues1 Customer requirements Value proposition
1 Euro Million

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FROM TELCO TO ICT
Delivering IT as a service Addressing
Network
Company IT Workplace
Cost reduction
Business model transformation
and differentiation
• Price per service usage
• End-to-end SLAs
• 24/7 management and support
• Technological update
• Secure operation

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ICT PORTFOLIO
Core
services
IT / IS
services
Cloud IT and Security
Connectivity
Vertical solutions
Video M2M
Unified
communications
ICT
outsourcing
BPO

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SECURITY IS KEY
portfolio Success story
• Security operation centre
• Data centre & cloud protection
• Remote access & end point protection
• Security professional services
• Strong commitment in R&D1
• Clean pipes is a product
developed with a specific
customer that combines
top resources from leading
vendors with PT unique
capabilities to deliver
multifunctional Internet
access security, including
ISP redundancy
1 PT involvement in R&D projects (e.g. TRONE, NETS) with top global universities

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VIDEO TO ENRICH CUSTOMER EXPERIENCE
Portfolio Success story
• Videoconference services
• Digital signage
• Content interactive solutions
• Audience measurement solutions
• Meo for enterprises
• Delivering Meo service to more
than 1/3 of top rated hotels in
Portugal and major hospitals

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ADVANCED M2M SOLUTIONS
Portfolio Success story
Water smart metering field trial
to demonstrate operational cost
reduction and fraud prevention,
enabling new business models.M2M Platform
Smart
Energy
Smart
Metering
Other
Vertical
Managed
Connectivity
Developer
SDK
Selfcare
Portal
Connectivity
Assets / Devices /Sensors

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FROM VOICE TO UNIFIED COMUNICATIONS
Portfolio Success story
• Advanced voice solution for a
bank with fixed mobile
convergence and UC&C user
experience to enable new
workflow to drive cost
reduction and compliance.
IMS/IP Centrex
Hosted/Cloud UC
Customer approach to
value transformation

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CUSTOMISED VERTICAL SOLUTIONS
Portfolio Success story
• Innovative Business models:
– As a service and pay per user
– End to end solution
• Combining PT’s internal skills
and best of breed partners
• Healthcare approach with
solutions for remote diagnosis,
patient screening, telemedicine
and efficient resources allocation
in hospitals
• Designed to address customer needs:
– Operational efficiency
– Internationalisation
– Customer interaction
Banking &
InsuranceTransport
Utilities
Retail &
Distribution
Tourism
Health
Munici-
palities
Education

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ICT OUTSOURCING
Portfolio Success story
• 5 years average contract duration
• Premium customer satisfaction
• Communications
• Data centre & servers
• Managed services
• Service desk
• Application support
26
86
+231%
20112010
Outsourcing TCV
Euro million

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COMPETITIVE BPO OFFERING
Portfolio Success story
• Top performer in the Hackett
Group’s performance studies
• Accounting and financial services
• Human resource services
• Facilities management services
• Document management services
BPO external customers
Number of customers
22222222
741
112008
88
1009
Internal customers
External customers

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DELIVERING ON TRANSFORMATION
IT/IS + Out. & managed services weight
on total corporate revenues1
Percentage
Non voice weight on total
corporate revenues1
Percentage
38
2011
66
2003
5
+400%
2011
25
2003
~1/3
~2/3
1 Corporate segment revenues

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M2M
Unified Comm &
Collaboration
CloudSecurity
Video
solutions
Outsourcing
Vertical solutions
BPO
FUTURE GROWTH FROM ICT & OUTSOURCING
Corporate revenues
New LoB
Voice
Data
Equip. Sales
IT/IS +
Outsourcing
Managed Services
IT/IS +
Outsourcing +
Managed
Services
Data
Voice
Equip. Sales
~50%
Now Future

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BUSINESS TO BUSINESS
CLOUD OPPORTUNITY

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NETWORK AND VIRTUALISATION ENABLES CLOUD
Virtual Infrastructure
Virtual Machine
Application
Operating System
Virtual Machine
Application
Operating System
Virtual Machine
Application
Operating System
Decision process for cloud adoption
Reduction of total cost of ownership
capex to opex
Flexible and responsive time to market
• Which technologies are strategic
differentiators
• Which technologies and systems should
be virtualised
• When to migrate systems

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Portuguese cloud market maturity1
Public Cloud
Off Premisses On Premises
Legacy IT
Private Cloud
Housing; Hosting; DC; Managed Services
Software as a Service
Platform as a Service
Infrastructure as a Service
• Half of PT Corporate customers
intend to subscribe cloud services
• 2/3 of such customers intend to
adopt a private or virtual private
architecture
• Main focus on security, infrastruc-
ture and web presence areas
PT IS A HYBRID PLAYER
SOURCE: PT/PRM Corporate Market Study; September 2011

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ADVISING CUSTOMERS ON CLOUD JOURNEY
Business Consultancy Services Transformation Services
Inform Transform
Snapshot Impact Analysis
PT Data centre
Discovery
Transformations
Migrations
Operations
Service Mix
Legacy Cloud
Managed Services Customer Data
centre

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STAND ALONE AND JOINT TO MARKET STRATEGY
Portugal
International
Cloud offer Go to market
Reseller /
Consultant
Independent
developer
Cloud
aggregator
Market reach
Other cloud providers

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BEST OF BREED PARTNERSHIPS
Software as a Service
Communication as a
Service
Platform as a Service
Infrastructure as a Service
Main partner Added value from partnerships
• Technological skills and
integration capacity
• Customer base on relevant
markets and go to market
synergies
• Ability to address international
markets

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WHAT MAKES PT CLOUD UNIQUE
Integrated ICT
Services
Service quality
ISO 20000
ISO
20000
Best of breed
partnerships
99.99%
service level
Local customer
support
Security
ISO 27001
Bandwidth
availability
Sustainability &
energy efficiency
PT data
jurisdiction

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B2B SUCCESS STORIES
Major bank Test and development infrastructure
Tourism hotel
chain
B2B
e-Marketplace
Media group
Private R&D
Foundation
Hybrid Solution that supports core and Web applications
Cloud IaaS to support domestic and international operations
Consulting for IT transformation
VDI and IaaS to support research activities
Cloud image archive for PACS system
Customer Highlights

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FINAL REMARKS
Business on enterprise market is changing;
ICT offering will be critical to address increasing
complex business demands
We know the key success factors for new business
– skills, partnerships and execution are key to
success
Well positioned to capture the new growth
opportunities

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BUSINESS TO BUSINESS
Lisbon, 29 & 30 October 2012