2. Application of the methodology defined by determination of 05/12/2013 to the 2015 financial year

2.1. Incomplete information

As referred above, when Mazars' calculation was undertaken, in the report in annex, there were situations where it was not possible to use the full amount of data and respective series required for the calculation of the cost-of-capital rate, given that some data were not available, namely as regards the risk-free interest rate and debt premium (vide table 1).

**Table 1 - Incomplete information**
Parameter	Observation
Risk-free interest rate	- Estonia was removed from the calculation of the weighted average due to the lack of information on bond issues. - Due to the absence of information on Luxembourg’s annual GDP, for the purposes of the weighing carried out, the published value for the first 9 months of 2014 was used. - Latvia and Lithuania joined the Euro-area in 2014 and 2015, respectively, and were not considered in the calculation as no sufficient history was available.
Debt premium	Only 12 of the 15 comparable companies made debenture loans maturing in 10 years. Companies that did not report issues were: Belgacom, Magyar Telecom and Swisscom, and for this reason they were not considered in the calculation.
Debt premium	Of the 12 considered companies that report issues, it must be highlighted that: - Elisa OYJ, Telekom Austria, Telenor ASA and TeliaSonera AB present incomplete data in 2013 and no data at all in 2014. - Hellenic Telecommunications presents a complete series in 2013, however fails to present data in 2014. - Telecom Itália presents an incomplete series in 2014, but the full amount of data required in 2013.

Source: Mazars Report

It should be referred that, notwithstanding the above-mentioned limitations, also as regards the risk-free interest rate and the debt premium, consultants did not believe that such situation required a change in the established methodology or brought any robustness problems thereto.

2.2. Comparable companies

In the scope of the analysis carried out by consultants, as regards comparable companies, PT SGPS was identified to have suffered very significant alterations in its corporate structure, after the first quarter of 2014. For the purpose of the calculation of parameters, observations for the last 9 months of 2014 were removed, to consider only 4 years and 3 months of observations of series for the calculation of beta and gearing and 15 months of observations for the calculation of the debt premium (vide table 2).

**Table 2 - PT SGPS**
Debt premium	The calculation of PT SGPS’ specific debt premium considered only the series of 1 year and 3 months, excluding the last 9 months of 2014, instead of considering the two-year series.
Beta and Gearing	The calculation of beta and gearing considered only the series of 4 years and 3 months, excluding the last 9 months of 2014, instead of considering a five-year series.

Source: Mazars

In brief, and according to consultants, “PT SGPS, as far as its performance is concerned for the period after the first quarter of 2014, does not reflect the structure of an operator of the telecommunications sector. The reduction in the total of assets and liabilities of PT SGPS is a sign of the contribution in kind in OI's capital increase that occurred on 5 May 2014, which explains the decrease of most items of the company’s consolidated financial position. As a result of that operation, the most expressive asset held by PT SGPS corresponds to the fair value of the investment in OI.”

In this framework, consultants considered that the last 9 months should not be considered in the data sample provided by PT SGPS, concluding that such exclusion “does not bring any robustness problems to the analysis, given that a considerable time horizon remains - as far as the comparable sample is concerned.”