Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2004)
55 slides from Sonae Sgps Sa's investor presentation, September 2004
Slide 1: Sonae SGPS September 2004
sonae sgps SEPTEMBER 2004 * * Data as of 30 June 2004
Slide 2: The History of Sonae Over the Last 40 Years
SONAE SGPS THE HISTORY OF SONAE OVER THE LAST 40 YEARS ‘00 Manager of portfolio of businesses with international dimension. Focused ‘90 management on Focus and main core Turnover development of core businesses CAGR* = 12% businesses. Financial control of non strategic Acquisition of Gescartão busine
Slide 3: Sonae Group - Current Position
SONAE SGPS SONAE GROUP - CURRENT POSITION Sonae SGPS manages a portfolio of diversified businesses by setting strategic guidelines and objectives, monitoring their performance, fostering synergies between them and identifying new business opportunities This is done by developing a balanced portfolio
Slide 4: Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 95.87% 75.68% (1) 67.04% 82.46% 100% Sonae Modelo Sonaecom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Food Retail Shopping Centres Telecommunications Services (4) Products Non Food Retail S. I. PROPERTY S. I. DEVELOP. IMOCAPITAL (2) CHOIC
Slide 5: Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain United Kingdom France Germany Greece Italy South America Africa Brazil South Africa Gabon Sonae is present in 11 countries, with 58 thousand employees #4
Slide 6: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Horizon 3: New businesses Horizon 2: Growth businesses Options for potential Horizon 1: future development Mature businesses High growth businesses with potential for strong pr
Slide 7: Sonae Indústria
sonae indústria
Slide 8: Sonae Indústria Guidelines
SONAE INDÚSTRIA GUIDELINES Sonae Indústria is the leading world manufacturer of Wood Based Products in terms of installed capacity and global presence A commitment to the customer, to sustainable development and to MISSION globalization of the businesses Be an autonomous organisation focused on oper
Slide 9: Indústria Business Portfolio
SONAE INDÚSTRIA BUSINESS PORTFOLIO SONAE INDUSTRIA 94.22% TAFISA 100% 100% 100% 98% 100% 100% 63% 100% 50% Tafisa Canada Tafisa France Tafisa South IMOCAPITAL Tafisa Spain Tafisa Brazil Glunz AG Tafisa UK Africa SIR Movelpartes Tafiber Taiber Eurresinas Gescartão Resoflex (65%) (a) (a) Sonae Indústr
Slide 10: Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE 36 Production sites in 8 Countries Canada Portugal United France Particle Board Kingdom Particle Board Particle Board Surfaced Board MDF Particle Board MDF Surfaced Board Surfaced Board Surfaced Board High Pressure Laminates OSB Germany Particle Board MDF Brazil Surfa
Slide 11: Wood Based Panels Production Capacity and Sales
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY AND SALES Production Capacity (‘000 m3/year) * +40% 8.371 7.482 7.339 7.339 After a heavy investment period 6.942 (EUR 1.2 billion), production capacity was reduced due to the 5.255 shut-down of old and obsolete plants, as initially planned. 1999
Slide 12: Indústria Consolidated Figures
SONAE INDÚSTRIA CONSOLIDATED FIGURES Million euro Turnover Turnover by Product Gescartão; 11% MDF; 18% 1,502 1,480 1,441 1,294 Others; 22% Particle Board; 788 16% 749 Hard Board; 1% OSB; 9% Surfaced Board; 23% 2000 2001 2002 2003 1H04 Turnover by Market EBITDA Rest of the World Portugal 13,2% 11,7%
Slide 13: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriDUICaAO
Slide 14: Distribuição Guidelines
SONAE DISTRIBUIÇÃO GUIDELINES Modelo Continente is the market leader in Portugal in food retail, and has a leading position in various non food retail markets. In Brazil, it is the leader in the Southern market and number 4 in the national ranking. Expand its business frontiers, taking advantage of
Slide 15: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 96.11% Modelo SONAE DISTRIB. Continente BRAZIL Food Retail Non-Food Retail Food Retail Brazil Continente Modalfa BIG* Modelo Worten Mercadorama (Paraná and Santa Catarina) Modelo Bonjour Max Mat (50%) Nacional (Rio Grande do Sul) SportZone
Slide 16: Distribuição Current Position - June 2004
SONAE DISTRIBUIÇÃO CURRENT POSITION – 30 June 2004 Brazil y Hypers and Supers y Non food formats y Southern Region Market Leader (4th National) Portugal y 165 stores (429,000 sqm) y Hypers and Supers y 546 M.€ Gross Sales y Non food formats (1,986 M.R$) y Market Leader y 279 stores (430,000 sqm) y 1
Slide 17: Portugal - Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL - RETAIL MARKET Food based formats – Relative Market Share 30% x 1,8 x 2,4 x 2,7 x 2,9 Mod. Cont. 2nd 3rd 4th 5th Source: UCDR’s Market Share; Modelo Continente estimates. 12 month average, as of June 2004 Food based formats – Market Dynamics Sales Area Sales 4% 3% Inflat
Slide 18: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL - RETAIL MARKET Food based formats: Southern market – Relative Market Share x 2,5 27% x 3,9 x 3,9 x 5,4 SDB 2nd 3rd 4th 5th Source: Modelo Continente estimates. June 2004 Food based formats – Market Dynamics 11% S. Paulo 6% 6% Paraná Santa Catarina Rio Grande do Sul 1st hal
Slide 19: Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Gross Sales (M. €) EBITDA Margin (%) 4,308 4,136 4,069 3,984 8.8% 8.4% 8.4% 8.3% 6.3% 7.0% 1.856 1.783 2000 2001 2002 2003 1H04 2000 2001 2002 2003 1H04 Sales Area (‘000 sqm) Number of Stores 846 860 860 859 760 427 435 444 413 372 2000 2001 2002 2003 1H04 200
Slide 20: Sonae Imobiliária
SONAE IMOBILIARIA sonae ile diltelar:
Slide 21: Imobiliária Guidelines
SONAE IMOBILIÁRIA GUIDELINES Sonae Imobiliária is the dominant leader in the Portuguese market, in Shopping Centre development, management and investment. VISION Best international Shopping Centre specialist Increase shareholder value through developing, investing in and MISSION managing Shopping Ce
Slide 22: Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Currently, Sonae Imobiliária… … owns or co-owns… 32 Shopping Centres, equal to 1.3 million m2 of GLA 17 in Portugal (14 Shopping Centres, 1 Retail Park and 2 Galleries) (651 thousand m2) 8 in Spain (385 thousand m2) 7 in Brazil (242 thousand m2) … manages… a total
Slide 23: Portugal - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov. 2003) – (GLA: 18,545 m2) MaiaShopping (Nov. 1997) – (GLA: 28,949 m2) Sonae Imobiliária (100%) Sonae Imobiliária (100%) 1 GuimarãeShopping (Feb. 1995) – (GLA: 26,770 m2) NorteShopping (Oct. 1998) – (G
Slide 24: Spain - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA SPAIN - Shopping Centres in operation and under development Parque Principado (Apr. 2001) – (GLA: 75,542 m2) Valle Real (Nov. 1994) – (GLA: 47,830 m2) UNDER DEVELOPMENT: Sonae Imobiliária (25%) / Whitehall Fund and Lar Grosvenor Sonae Imobiliária (50%) / ING Real Estate (50%) 1 Zub
Slide 25: Other Europe - Shopping Centres Under Development
SONAE IMOBILIÁRIA OTHER EUROPE - Shopping Centres under development Mediterranean Cosmos (Spring 2005) Salonika (GLA: 47,000 m2) Owner: Sonae Charagionis (39.9%) / Brescia Centre (Spring 2006) Lamda Development (60.1%) Brescia (GLA: 29,000 m2) Aegean Park (Autumn 2006) Owner: Sonae Imobiliária (50%)
Slide 26: Brazil - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct. 1997), Brasília – (GLA: 31,216 m2) Owner: Sonae Imobiliária (5.2%) / Others (94.8%) Parque D. Pedro (Mar. 2002) – (GLA: 109,324 m2) Owner: Sonae Imobiliária (97.9%) / Enplanta Engenharia (2.1%) Boavista
Slide 27: Imobiliária Consolidated Financial Structure
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Million euro Net Profits before Min. Int. EBITDA 249 96 98 74 144 55 121 46.2 45.6 63 50 65 2000 2001 2002 2003 1H04 2000 2001 2002 2003 1H04 Market Value of Investments NAV per Share (€) 3,690 2,868 2,561 29.97 29.16 27.67 1,944 24.90 1,758 1,5
Slide 28: Imobiliária Operational Indicators
SONAE IMOBILIÁRIA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 1,674 1,564 Brazil Italy 14% 1,517 3% Portugal 57% Spain 26% 2002 2003 1H04 Sales and Visits 1,350 1,227 177 189 1H03 1H04 Sales (million euro) Visits (millions) # 27
Slide 29: Sonaecom
sonae com
Slide 30: Sonaecom Guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 4 main business divisions: Mobile (Optimus), Fixed (Novis), Media & Internet (Publico and Clix) and Sofware & Systems Integration (Wedo, Enabler, Bizdirect and Mainroad) Sonaecom’s ambition is to be the b
Slide 31: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 46.29% 56.67% 100% 100% Software Media & & Mobile Fixed Internet Systems Integration Optimus Novis Publico We Do Consulting (100%) – Telecom Clix (56.67%) Systems & Software Developer Enabler (70%) – Retail Systems Integrator 20.18% 43.33% 43.33% & Software
Slide 32: Sonaecom - Consolidated Key Figures
SONAE COM SONAECOM - CONSOLIDATED KEY FIGURES (a) Million euro Turnover EBITDA 146 838 789 733 98 72 429 64 395 2001 2002 2003 1H04 2001 2002 2003 1H04 (55) Free Cash-Flow CAPEX 35 197 2001 2002 2003 1H04 (2) (55) 127 123 50 44 2001 2002 2003 1H04 (268) (a) Sonaecom presented in 2003, for the first
Slide 33: Sonaecom Operational Indicators
SONAE COM OPERATIONAL INDICATORS By the end of June 2004, Sonaecom had 2.5 million customers and generated 3.5 billion minutes of voice, data and internet traffic Novis 34% Optimus 85% 2.5 million 3.5 billion customers minutes Clix Novis 28% 9% Clix Optimus 6% 38% # 32
Slide 34: Optimus - Mobile Competitive Landscape
SONAE COM OPTIMUS - MOBILE COMPETITIVE LANDSCAPE Optimus entered the market 5 years ago, 10 years later than TMN and 6 years later than Vodafone Since launch, it has captured 26% of new market entrants and is one of the most successful third operators in Europe with a market share of around 20% Data
Slide 35: Novis - The Fixed Altnet Leader
SONAE COM NOVIS - THE FIXED ALTNET LEADER Principal activity is the optimisation of communication and network management for the Sonaecom Group Novis leads altnets in its key market segments: SME and SoHo Novis has repositioned its business to focus on core segments, SoHos and SMEs, and wholesale bu
Slide 36: Internet and Media - Clix and Público
SONAE COM INTERNET AND MEDIA - CLIX AND PÚBLICO Clix Was launched in 1999 as an access based ISP, and rapidly achieved clear leadership in the only liberalized Internet market in Portugal – narrowband However, with broadband solutions, heavy Internet users are migrating to the new broadband offers w
Slide 37: Software & Systems Integration
SONAE COM SOFTWARE & SYSTEMS INTEGRATION The Software & Systems Integration division brings together leading specialists in telco and retail systems integration, namely WeDo and Enabler Apart from a strong foothold in the Portuguese market, Enabler and WeDo have important international customers in
Slide 38: Sonae Capital
sonae capital
Slide 39: Sonae Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital generates options and future growth in construction and engineering, tourism, logistics and services Concentrate its strategic investments within sectors undergoing VISION consolidation and develop businesses to take a leading role in their industries In Touris
Slide 40: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Hotel Management Construction & Resort Manag. Engineering, & Develop. Joint -Ventures Transport Insurance Car Hire Other Leisure &Residential Risk Capital & Logistics Brokerage & Retailing Businesses Fitness & Sport Development Travel Solinca Hotelaria
Slide 41: Capital Aggregated Figures
SONAE CAPITAL AGGREGATED FIGURES Million euro Refrigeration, Air Conditioning Turnover and Cleaning Services Transport and 5% 662 758 Logistics 684 626 6% Glass 553 653 Containers 554 25% 399 Plywood 1 276 20% Car Hire and 2000 2001 2002 2003 1H04 Retailing 12% EBITDA Residential Development 85 2% O
Slide 42: Sonae SGPS
sonae sgps * Data as of 30 June 2004
Slide 43: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro For the half year ended 30 June 2004 30.06.2004 30.06.2003 Turnover 3,108.3 2,913.5 Operational Cash-Flow (EBITDA) 331.8 270.9 Operational Profit (EBIT) * 124.7 61.8 Net Financial Charges (85.8) (116.3) Profit/(Loss) on Ordinary Activities
Slide 44: Turnover - Sector and Geographical Breakdown
SONAE SGPS TURNOVER Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 6,386 Retail 6,276 6,260 51% 5,751 Portugal Brazil 60% 15% 5,202 Shopping Centres 5% 3,108 Rest of Telecom. Europe 13% 17% 2,914 Sonae Wood Rest of Capital & Based the World Holding Products 8% 6% 1999 * 2000 2001 2002 2003 1H04 25%
Slide 45: EBITDA - Sector Breakdown
SONAE SGPS EBITDA Million euro SECTOR BREAKDOWN 86 4 332 37 101 104 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 44
Slide 46: Net Profit Before Minority Interests
SONAE SGPS NET PROFIT BEFORE MINORITY INTERESTS Million euro SECTOR BREAKDOWN 5 18 56 (11) 34 10 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 45
Slide 47: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 30 June 2004 30 June 2004 30 June 2003 Fixed Assets * 5,074.2 5,176.5 Stocks 653.0 689.5 Debtors 843.4 885.8 Cash and short term investments 386.7 482.8 Deferrals 513.7 551.1 Total Assets 7,471.0 7,785.7 Shareholders’ Funds * 562.7 518.7 Minority In
Slide 48: Total Assets - 30 June 2004
SONAE SGPS TOTAL ASSETS – 30 June 2004 Million euro 8,281 Shopping 7,874 7,968 Centres 7,675 7,471 18% 751 7,123 5,925 Retail 651 25% Telecom. 5,274 18% Sonae Capital and Holding 12% Wood Based 1999 * 2000 2001 2002 2003 1H04 Products 27% * Pro-forma accounts considering the merger between Sonae Inv
Slide 49: Gross Investment
SONAE SGPS GROSS INVESTMENT Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN Brazil 51 287 10% 45 103 Rest of Europe 28% 62 Portugal 61% Rest of the 26 World 1% Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 48
Slide 50: Net Debt - June 2004
SONAE SGPS NET DEBT – 30 June 2004 Million euro SECTOR BREAKDOWN 731 2,818 379 369 797 542 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 49
Slide 51: Consolidated Financial Structure - Net Debt and Net Gearing
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 282% 261% 3,899 253% 3,692 239% 3,497 3,600 236% 3,528 222% 3,377 3,332 3,294 215% 220% 220% 3,173 3,269 3,071 191% 193% 2,851 2,860 187% 2,818 2,501 2,574
Slide 52: Consolidated Financial Structure - Net Debt/EBITDA and Interest Cover
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.1x 6.0x 6.1x 5.8x 5.6x 5.7x 5.6x5.6x 5.7x 5.2x 5.1x 5.1x 4.7x 4.5x 4.4x 4.4 x 4.0 x 4.0 x 3.7x 3.9x 3.6x 3.2x 3.0x 3.1x 3.0x 3.1x 3.1x 2.8x 2.5x 2.6x 2.5x 2.4x 2.4x 2.3x 2.1x 2.1x 1Q 2Q 3Q 4Q
Slide 53: Consolidated Financial Structure by Business
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Million euro To analyse Sonae’s debt position correctly it is not sufficient to simply look at the consolidated figures. The adequacy of the capital structure in each business of its portfolio can be summarised, as follows: Net Debt EBITDA (a) Net Debt / E
Slide 54: Sonae Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Focus on operating efficiency Establish conditions for the sustainable development of businesses Promote the strengthening of Group competencies More efficient use of capital employed Strengthen the financial structure of the businesses Reduce net debt Imp
Slide 55: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt