Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2000)
74 slides from Sonae Sgps Sa's investor presentation, Sep 21, 2000
Slide 1: Sonae SGPS
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Slide 2: Sonae SGPS Business Portfolio
#2 SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 85.45% 69.56% 51.12% 79.9% 100% 100% Sonae Sonae Sonae Sonae.com Sonae Sonae Indústria Distribuição Imobiliária Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Forestry Non Food Retail (development and
Slide 3: Sonae SGPS Highlights – 1st Half 2000
#3 SONAE SGPS HIGHLIGHTS – 1ST HALF 2000 Turnover growth momentum maintained . up 19% (Telecom, Retail Brazil, Shopping centres) Improved operational profitability . up 44% (Retail, Shopping centres, Wood based products) Higher net financial charges due to heavy . up 88% investment in business devel
Slide 4: Sonae SGPS Consolidated Results – 1st Half 2000
#4 SONAE SGPS CONSOLIDATED RESULTS – 1ST HALF 2000 Euro millions EUR million 1H - 2000 1H – 1999 * ∆ Turnover 2702 2405 +12% (+19% allowing for CSC disposal) Operating profit 59 41 +44% Net financial expenses (72) (38) +88% Profit on ordinary activities (12) 3 Extraordinary profit 272 33 Associated
Slide 5: Sonae SGPS Turnover – Contribution by Sector
#5 SONAE SGPS TURNOVER – CONTRIBUTION BY SECTOR Euro millions 5215 2810 24% 3.075 2.702 36% 2.585 2.405 2.255 3% 8% 3% 26% 1996 1997 1998 * 1999 * 2000 * pro-forma Retail Brazil Retail Portugal Wood Based Products Others Shopping Centres Telecoms Others
Slide 6: Sonae SGPS Operating Profit – Contribution by Sector
#6 SONAE SGPS OPERATING PROFIT – CONTRIBUTION BY SECTOR Euro millions 12 (17) 20 (3) (16) 65 59 Brazil Portugal Retailing Wood based Shopping Telecoms Tourism Others TOTAL products Centres
Slide 7: Sonae SGPS EBITDA – Contribution by Sector
#7 SONAE SGPS EBITDA – CONTRIBUTION BY SECTOR Euro millions 23 (1) (4) 223 19 71 115 Brazil Portugal Retailing Wood based Shopping Telecoms Tourism Others TOTAL products Centres
Slide 8: Sonae SGPS Profit Before Tax – Contribution by Sector
#8 SONAE SGPS PROFIT BEFORE TAX – CONTRIBUTION BY SECTOR Euro millions 239 263 12 (32) 11 41 (8) Retailing Wood based Shopping Telecoms Tourism Others TOTAL products Centres
Slide 9: Sonae SGPS Consolidated Financial Structure – 1st Half 00
#9 SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE – 1ST HALF 2000 Borrowings Net Gearing Interest Cover (Euro million) 4,1x 3050 157% 225 2505 129% 3,0x 3,1x 165 2369 209 82% 2340 2825 2110 1999 1Q 00 1H 00 1999 1Q 00 1H 00 1999 1Q 00 1H 00 Cash, Bank and Short Term Investments Net Debt / (Shareholders
Slide 10: Sonae SGPS Outlook for 2000 Financial Year
# 10 SONAE SGPS OUTLOOK FOR 2000 FINANCIAL YEAR . Weakening of Retail demand in Portugal offset by recovery in Brazil . Higher operational profitability due to seasonality of Retail and Shopping Centre business, and progress towards break-even in Optimus . Despite interest rate rising trend, lower n
Slide 11: Sonae Indústria
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Slide 12: Sonae Indústria Business Portfolio
# 12 SONAE INDÚSTRIA BUSINESS PORTFOLIO SONAE INDUSTRIA 91% SIR TAFISA SPDF Laminantes Componentes Wood based panels Forestry and Chemicals Sawmilling Resins 97% 60% 63% Tafiber Taiber Isory Glunz AG Tafisa Canada Tafisa Brasil Tafisa SA
Slide 13: Sonae Indústria Consolidated Results 1st Half 2000
# 13 SONAE INDÚSTRIA CONSOLIDATED RESULTS 1ST HALF 2000 Euro millions EUR Million 1Q00 2Q00 1H00 1H99 ∆ 1H00/1H99 Turnover 322 318 640 716 -11% (+11% exc CSC) Operating profit 5,9 11,4 17,3 11,9 +45% Net financial expenses (9,3) (15,1) (24,4) (16,9) +44% Profit on ordinary activities (3,5) (3,6) (7,
Slide 14: Sonae Indústria Profitability
# 14 SONAE INDÚSTRIA PROFITABILITY Euro millions Turnover EBITDA Net Profit Net Profit Ex-Glunz 9 308 27 4 350 35 40 349 37 41 29 318 8 367 322 35 31 7 9 2 -2 -4 1999 2000 1999 2000 1999 2000 -4 -5 1Q 2Q 3Q 4Q 1999 2000
Slide 15: Sonae Indústria Sales 1H00
# 15 SONAE INDÚSTRIA SALES 1H00 By Product By Market Africa North America 1% 5% Others South America 18% 5% Germany Surfaced 25% 28% UK 2% Plywood 11% Iberia Hard./Soft. 30% 5% Particleboard 12% OSB France MDF 2% 32% 24%
Slide 16: Sonae Indústria Consolidated Financial Structure
# 16 SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Borrowings Net Gearing Interest Cover (Euro millions) 849 3,8 x 781 124% 121% 3,4 x 730 96 33 110% 3,0 x 64 753 748 666 1999 1Q00 1H00 1999 1Q00 1H00 1999 1Q00 1H00 Cash, Bank and Short Term Net Debt / (Shareholders Funds EBITDA / Interest Payed
Slide 17: Sonae Indústria EBITDA Margin
# 17 SONAE INDÚSTRIA EBITDA MARGIN Ibéria France Germany 19% 18% 17% 15% 15% 4% 5% 5% 5% 7% 1% 2% 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 -3% -3% -5% 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 UK Canada Brazil 43% 40% 48% 37% 38% 36% 35% 38% 32% 22% 13% 11% 9% 7% 9% 2Q 99 3Q 99 4Q 99 1Q 00 2Q
Slide 18: Sonae Indústria Strategy
# 18 SONAE INDÚSTRIA STRATEGY . Restructure industrial base in Germany and France Consolidated leadership in regions where Sonae Indústria is already leader . Invest in new growth products – OSB, flooring . Increase value-added by expanding surfacing, painting “cut-to-size” capacities Grow in region
Slide 19: Sonae Distribuição
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Slide 20: Sonae Distribuição Business Portfolio
# 20 SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO SONAE DISTRIBUIÇÃO 65,5% SONAE M.C.H DISTRIB. BRASIL Food Retail Portugal Food Retail Brasil General Retail Iberia Peninsula 86 store 170 stores 103 stores 258 thousand sq.m 352 thousand sq. m. 84 thousand sq. m. Continente BIG Modalfa Modelo Cândia (S.Paul
Slide 21: Sonae Distribuição Profit & Loss – 1st Half 2000
# 21 SONAE DISTRIBUIÇÃO PROFIT & LOSS – 1ST HALF 2000 Euro million EUR million 1H – 2000 1H – 1999 ∆ Net sales 1687 1412 +19% EBITDA 114 6.8% 94 6.6% +22% Operating profit before goodwill 73 4.4% 62 4.4% +19% amortization Operating profit 53 3.2% 46 3.2% +17% Net financial loss (33) -2.0% (18) -1.3%
Slide 22: Sonae Distribuição EBITDA / EBIT Performance
# 22 SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro million Portugal Brazil 168 74 155 99 109 50 100 37 78 67 29 29 44 69 11 25 10 42 24 1998 1999 1H 00 1998 1999 1H00 EBITDA EBITDA EBIT EBIT
Slide 23: Sonae Distribuição Outlook
# 23 SONAE DISTRIBUIÇÃO OUTLOOK Context Strategic guidelines . Sector consolidation . Reinforce leadership in base market . Pro-active stance in concentration movements in Iberian Peninsula and Latin America . Consumer focus . Operational efficiency . Human resources development . E-commerce develop
Slide 24: Sonae Distribuição Modelo Continente Growth
# 24 SONAE DISTRIBUIÇÃO MODELO CONTINENTE GROWTH Food Non Food 4 formats 6 formats ! Hyper ! Home Appliances ! Sport goods ! Mini-Hyper ! Apparel ! Computer products ! Supers ! Construction ! Office products Portugal ! Convenience materials 48% 8% Leadership in a mature 37% 13% Synergic growth marke
Slide 25: Portugal – Total Modern Retail Sales Area
# 25 SONAE DISTRIBUIÇÃO PORTUGAL – TOTAL MODERN RETAIL SALES AREA sq.m 1.013.000 17% 18% 15% 17% 68% 65% 575.000 95 96 97 98 99 Hypers+mini-hypers Supers (stores with less than 1.000 sq.m) Hard discount
Slide 26: Portugal – Legal Framework
# 26 SONAE DISTRIBUIÇÃO PORTUGAL – LEGAL FRAME WORK . Anti-dumping laws: emergent though control Competition regulation . Anti-trust regulation: in accordance with EEC standards . Opening restrictions on Sunday mornings and public Restrictions on hyper opening hours holidays Limitations on the licen
Slide 27: Portugal – Modern Retail Market
# 27 SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Hyper per one million inhabitants Top 5 retail operators food market share (>2.500 sq.m) A 34 GB 84% F 18 AUS 73% D 17 FIN 17 FR 72% L 15 GER 70% GB 15 POR 10 POR 66% S 9 BEL 65% B 8 SP 7 NL 54% NL 5 ITL 47% I 5 PL 1 SP 46% 0 10 20 30 40 0% 20%
Slide 28: Portugal – Modern Retail Market
# 28 SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Others 4,7% Carrefour 7,1% Auchan 15,5% SONAE SONAE SONAE SONAE 1999 43,8% 34% 26% 8% APED** Universe Modern Nielsen Food Relevante retail Index universe Private (INA)* Consumption* Jerónimo Martins 28,8% * 99 estimates ** APED Universe - Assoc
Slide 29: Sonae Distribuição Portugal – Portfolio
# 29 SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 1H00 Gross Sales: 1.067 M. Euro Final sq.m: 345.000 m2 er N stores: 201 Main formats Stores Sq.m (000) 1H00 gross sales (M EUR) Continente Hyper 12 117 498 Modelo Mini-Hiper 55 126 393 Modelo Bonjour Super 19 15 22 Appliances/consu-mer Worten 38 29 78 ele
Slide 30: Sonae Distribuição Brazil – Retail Market
# 30 SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET Brazil Total Area (´000 km2) 8.547 Population (´000) 162.000 per capita GDP (R$) 5.560 GDP (b R$) 900 Southeast Total Area (´000 km2) 925 10.8% Population (´000) 67.003 41.4% per capita GDP (R$) 8.200 GDP (b R$) 563 62.6% South Total Area (´000 km2) 577
Slide 31: Sonae Distribuição Brazil – Retail Market
# 31 SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET Gross sales CAGR = 9% 60 bR$* ABRAS Ranking 56 bR$ 96 97 98** 50 bR$ 1 1 1 Carrefour 47 bR$ 2 2 2 Pão de açucar 9 9 3 SDB 4 3 4 Bompreço 3 4 5 Sendas nd nd 6 Wal-Mart 42% 11 11 7 Sé 27% 33% 26% 8 8 8 Zaffari 1996 1997 1998 1999 Others Top 5 ABRAS * ABRA
Slide 32: Brazil – Clear Leadership in Southern Region
# 32 SONAE DISTRIBUIÇÃO BRAZIL – CLEAR LIDERSHIP IN SOUTHERN REGION Southern states SDB sales: 2,8 b R$ 62% of TOP 8 players market share x 4 Carrefour x 4 Zaffari x 17 Wal Mart x 18 CBD 1999
Slide 33: Sonae Distribuição Brazil – Portfolio
# 33 SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 1H00 Gross Sales: 823 M. Euro Final sqm: 352.500 m2 er N stores: 170 1H00 gross Main formats Stores Sq.m (000) sales (M EUR) São Paulo BIG Hypers 7 45 114 Cândia Supers 1 3 11 Paraná BIG Hypers 4 28 63 Mercadorama Supers 36 62 189 Rio Grande do Sul + Sta. C
Slide 34: Sonae Imobiliária
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Slide 35: Sonae Imobiliária Business Portfolio
# 35 SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe CascaiShopping (50%) Centro Colombo (50%) Shopping Penha (14%) CoimbraShopping MaiaShopping Shopping Franca (31%) GaiaShopping Norte
Slide 36: Sonae Imobiliária Shopping Centres
# 36 SONAE IMOBILIÁRIA SHOPPING CENTRES 2 Number GLA (m ) Shopping Centres in operation Portugal 9 458.000 Brazil 5 105.700 14 563.700 Shopping Centres under developpemnt Portugal 3 82.400 Spain 2 97.700 Greece 1 60.000 Brazil 1 105.000 7 345.100 Shopping Centres under management Portugal 690.000 Sp
Slide 37: Sonae Imobiliária Development and Investment
# 37 SONAE IMOBILIÁRIA DEVELOPMENT AND INVESTMENT Equity GLA Investment Opening 2 9 Stake (000 m ) (EUR x 10 ) Sintra Retail Park 50% 16,5 16 12/00 MadeiraShopping 50% 25 38 03/01 AlgarveShopping 100% 40 44 03/01 Plaza Mayor 75% 30 47 2H01 (Malaga – Spain) Parque Principado 25% 70 102 1H01 (Oviedo –
Slide 38: Sonae Imobiliária Shopping Centre Performance
# 38 SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (thousand sq. m) Sales per sq. m Jul99 - Jun00 (EUR thousand) Colombo 120 Colombo 3,5 NorteShopping 72 NorteShopping 3,1 CascaiShopping 63 CascaiShopping 2,1 GaiaShopping 55 GaiaShopping 1,5 Vasco da Gama 48 Vasco da Gama 2,9 Mai
Slide 39: Sonae Imobiliária Sales Growth 1H99/1H00
# 39 SONAE IMOBILIÁRIA SALES GROWTH 1H99/1H00 32% 27% 25% 21% 11% 7% 7% 3% Colombo NorteShopping GaiaShopping MaiaShopping CoimbraShopping GuimarãeShopping Viacatarina (*) CascaiShopping (*) In April 99 the first phase of the expansion and renovation of CascaiShopping opened to the public
Slide 40: Sonae Imobiliária Asset Value
# 40 SONAE IMOBILIÁRIA REAL ESTATE MARKET ASSET VALUE ATTRIBUTABLE TO SONAE IMOBILIÁRIA Euro millions 889 ∆% 37% 91% 246 Retail 649 190 216 177 5% Residential 4% Other 1998 1999 NAV Debt
Slide 41: Sonae Imobiliária Consolidated Financial Structure
# 41 SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE Borrowings Net Gearing Interest Cover (Euro millions) 282 93% 286 87% 5,1 X 245 4,7 X 59 35 69% 4,0 X 59 177 216 223 1999 1999 Prop 1H 00 1999 1999 Prop 1H 00 1999 1999 Prop 1H 00 Cash, Bank and Short Term Net Debt / (Shareholders Funds Investm
Slide 42: Sonae Imobiliária Consolidated Results 1st Half 2000
# 42 SONAE IMOBILIÁRIA CONSOLIDATED RESULTS 1ST HALF 2000 Euro millions EUR Million 1ºH - 1999 * 1ºH - 2000 ∆ Turnover 87,3 102,1 17% Operating profit 16,4 19,1 16% Net financial expenses (3,7) (4,6) -18% Profit on ordinary activities 12,6 (14,5) 14,7% Extraordinary profit 2,4 0,6 -74% Associated co
Slide 43: Sonae Imobiliária Strategy
# 43 SONAE IMOBILIÁRIA STRATEGY . Seek new opportunities in Portugal, along with Growth in Iberia renovation and expansion of existing shopping (2004 NAV weigth ~ 65%) centres. . Seek development/buying opportunities in Spain. Growth in Brazil (2004 NAV weigth < 20%) Search for growth opportunities
Slide 44: Sonae.com
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Slide 45: Sonae.com Business Portfolio
# 45 SONAE .COM BUSINESS PORTFOLIO SONAE.COM (1) 45% 56.7% 100% 100% Mobile Fixed Data Multimédia Sonae.com and IT and Internet Ventures Optimus Novis Publico.pt JVs & Alliances: JV Sonae Distrib. (25%) Publico BizDirect (Digital Clix (56.7%) (2) Marketplace JV) (45%) 20% 43.3% 43.3% Sidra Multimedi
Slide 46: Sonae.com Financial Performance
# 46 SONAE .COM FINANCIAL PERFORMANCE Euro millions EUR Million 1998 1999 1H 2000 Total operating revenues 53 255 230 Optimus 39 240 205 Novis 14 15 16 EBITDA (20) 15 18 Optimus (21) 19 34 Novis 1 (4) (17) Extraordinary income (loss) 2 19 (1) Income (loss) before taxes (32) (33) (39) Income tax 0 27
Slide 47: Sonae.com Financial Progress
# 47 SONAE .COM FINANCIAL PROGRESS Euro millions Operating revenues Mobile Fixed / Internet Consolidated 240 255 230 205 53 39 14 15 16 1998 1999 1H 00 1998 1999 1H 00 1998 1999 1H 00 EBITDA Mobile Fixed / Internet Consolidated 34 19 18 15 1 1998 1999 1H 00 1998 1999 1H 00 1998 1999 1H 00 -4 -17 -21
Slide 48: Sonae.com Strong Operational Momentum
# 48 SONAE .COM STRONG OPERATIONAL MOMENTUM 1998 1999 1H – 2000 Mobile - Subscribers 278.422 817.132 1.002.204 - ARPU (Euro) 34.2 30.7 32.6 - Market share (EOPs) 9.0% 17.5% 19.3% - Market share (Revenues) [2.8%] 14.8% 19.5% - Net adds [33.7%] 33.7% 35.5% - Churn n.m. 42.4% 15.8% Fixed, Data and IT -
Slide 49: Mobile – The Portuguese Market Opportunity
# 49 SONAE .COM MOBILE – THE PORTUGUESE MARKET OPPORTUNITY Mobile penetration (31.05.00) Iceland 70,4% Finland 68,0% Norway 64,5% Sweden 63,6% Austria 62,4% Italy 61,2% Market subscribers (‘000s) Luxamburg 56,0% Netherlands 53,7% 6000 Switzerland 52,3% +522 5000 +1597 Portugal 51,9% UK 51,6% 4000 Sp
Slide 50: Optimus – Subscriber Growth
# 50 SONAE .COM OPTIMUS – SUBSCRIBER GROWTH Operator penetration (15 months after lauch) Optimus subscribers, EOP (000’s) Optimus 8,20% 1002 Cosmote 5,90% 918 Amena 3,40% 817 Mobistar 2,20% 683 Airtel 1,80% 564 Netcom 1,60% 431 Libertel 1,40% Omnitel 1,30% Bouygues 0,40% Orange 0,40% 0,00% 2,00% 4,0
Slide 51: Optimus – ARPU Evolution
# 51 SONAE .COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 35,0 34,6 34,2 34,0 33,8 34,0 33,3 33,0 33,2 31,8 32,0 31,2 31,4 31,9 31,0 31,0 30,0 30,2 29,5 29,0 29,6 29,1 28,0 28,7 28,5 27,2 27,0 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Optim us Telecel TMN
Slide 52: Optimus – Market Share
# 52 SONAE .COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) Share of net additions (000’s) 3.456 3.754 4.219 4.671 4.931 5.194 +379 +298 +468 +451 +259 +263 38,2% 40,0% 39,8% 45,5% 45,5% 45,8% 45,3% 45,0% 44,9% 45,7% 48,6% 44,3% 21,6% 9,6% 22,2% 30,3% 23,7% 37,2% 36,4% 35,8% 26,0% 42,0
Slide 53: Optimus – Capitalisation of Costs Policy
# 53 SONAE .COM OPTIMUS – CAPITALISATION OF COSTS POLICY Euro millions 1998 1999 1H 2000 Subscriber acquisition costs: 57 126 47 - Handset subsidy 44 68 23 - Publicity 8 26 11 - Commissions 5 31 14 Other: 59 32 8 - Consultancy costs 34 11 3 - Other 25 21 5 Total capitalised costs 116 158 55 Optimus
Slide 54: Novis – Initial Established Platform
# 54 SONAE .COM NOVIS – INITIAL ESTABLISHED PLATFORM SRD IP Global . Founded in 1994 it is one of the few integrated . Founded in October 1995 to provide dial-up and data, communications and IT service providers in dedicated Internet access Portugal . Second largest business ISP with 21.000 . Strong
Slide 55: Novis – Access and Infrastructure Strategy
# 55 SONAE .COM NOVIS – ACCESS AND INFRASTRUCTURE STRATEGY Backbone Access . Build nationwide backbone to connect dense . Direct access using fibre and WLL in high density business districts business districts, using indirect access for fast . Build a 670 km fibre backbone linking Lisbon and market
Slide 56: Novis – Capitalisation of Costs Policy
# 56 SONAE .COM NOVIS – CAPITALISATION OF COSTS POLICY Euro millions 1H 2000 Subscriber acquisition costs: 13 - Publicity 13 - Commissions 0 Other: 2 - Consultancy costs 0 - Other 2 Total capitalised costs 15
Slide 57: Clix – Subscriber and User Growth
# 57 SONAE .COM CLIX – SUBSCRIBER AND USER GROWTH Active dial-up users since launch (000’s) Cumulative Clix subscribers (000’s) 429 194 171 299 127 172 78 108 6 Out. 99 Nov. 99 Dez. 99 Mar. 00 Jun. 00 Nov. 99 Dez. 99 Mar. 00 Jun. 00
Slide 58: Sonae.com Group Capitalisation
# 58 SONAE .COM GROUP CAPITALISATION Euro millions EUR Million 1H 2000 Debt 373 Total equity 630 Total book capitalization 1003 Net gearing 23%
Slide 59: Sonae.com Vision
# 59 SONAE .COM VISION . Establish leadership in mobile communications . Leverage Internet strength to build leadership of the new economy . Build on early success in mobile and Internet, into fixed and multimedia . Derive synergy benefits from common ownership and control of fixed, wireless, Intern
Slide 60: Optimus – Data Strategy
# 60 SONAE .COM OPTIMUS – DATA STRATEGY SIM Toolkit SMS Technology Mobile ISP GPRS UMTS SMS based VAS Mobile Portal By 2004 data expected to 1999 2000 2001 2002 account for 10- 15% of service revenues • Over 52% of • First to customer base commercially using SMS deploy • Over 13% of " SIM Results cu
Slide 61: Optimus – Focus on Growth and Synergies
# 61 SONAE .COM OPTIMUS – FOCUS ON GROWTH AND SYNERGIES . Lead the market in the long term (in terms of subscribers) . Attract high ARPU segments - Actively target Corporate and High Consumer sectors - Consolidate position in the SME sector . Lead the market in relevant opportunities - Data and m-co
Slide 62: Novis – Network Coverage
# 62 SONAE .COM NOVIS – NETWORK COVERAGE (BACKBONE, MAN AND WLL) End of period 2000 2001 2002 Coverage of business sites 33% 61% 73% Covered business sites (000’s) 71 134 159 Coverage of fixed lines market 27% 51% 60% (residential +business) Fixed lines in covered areas 945 1769 2074 (000’s) Novis .
Slide 63: Novis – Strong Competitive Position
# 63 SONAE .COM NOVIS – STRONG COMPETITIVE POSITION Fixed Premium IT Voice Data Internet Integration NOVIS ✓ ✓ ✓ ✓ Portugal Telecom ✓ ✓ ✓ ✓ Oni ✓ ✓ ✓ ✓ JazzTel ✓ ✓ ✓ Interoute ✓ ✓ Maxitel ✓ ✓ Telecel ✓ ✓ Teleweb ✓ ✓ ✓
Slide 64: PC and Internet Penetration Is Low in Portugal
# 64 SONAE .COM PC AND INTERNET PENETRATION IS LOW IN PORTUGAL 1999 PC Penetration Web buyers (in 000’s and as % of web users) 25,0% 500 23,0% 23,0% 447 450 53,5% 21,0% 20,1% 400 47,0% 19,0% 350 17,0% 337 38,1% 38,4% 17,0% 35,1% 300 15,0% 13,8% 250 28,0% 13,0% 204 200 10,9% 16,5% 11,0% 150 9,0% 8,5%
Slide 65: Público – Acquisition Benefits
# 65 SONAE .COM PÚBLICO – ACQUISTION BENEFITS . 100% acquired by Sonae.com from Sonae Group in April 2000 . Assures access to quality content . Almost all content produced in-house, with 196(*) editorial staff . Público’s readership has a close fit with that of Internet users . Recognised as ‘the sc
Slide 66: Público Online Strategy
# 66 SONAE .COM PUÚBLICO ONLINE STRATEGY Create market Leverage Público’s content places • Classifieds Set up verticals/ communities – Recruiting • City guide and – Real Estate Optimise ticket selling – Auto Público Online • Webvertizing • Education/ • Robust news • Auctions Sell content to universi
Slide 67: Portal Strategy – Value Generation
# 67 SONAE .COM PORTAL STRATEGY – VALUE GENERATION Increase subscriber base Expand offering . Cross sell the services of offline and online . Enhance functionality as well as content businesses . Develop multiple sources of revenues . Create joint marketing and advertising campaigns . Lunch virtual
Slide 68: Clix – Generation of Value
# 68 SONAE .COM CLIX – GENERATION OF VALUE Services Content . Internet . Real time news - Search engine - Top news - Natural language search engine - Events on-line - Hierarchical search (by category) . Daily new selection . E-mail - Image of the day . Web-hosting - Headlines . Chat . Detailed conte
Slide 69: Sonae.com Incremental Value Creation
# 69 SONAE .COM INCREMENTAL VALUE CREATION Joint ventures & Alliances Corporate venturing . Current investments comprise: . First investment in a 49% stake in Prodigio - 25% stake in a B2C JV with Sonae Distribuição - 45% stake in a B2B joint-venture with Aitec and BPI
Slide 70: Sonae Turismo
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Slide 71: Sonae Turismo Business Portfolio
# 71 SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotels Resort Leisure Travel Management Fitness & Development & Sports Hotel management Troia Resort Entertainment (Funcenter) Business travel Real estate development Lagos properties Health Cl
Slide 72: Sonae Turismo Torralta Project
# 72 SONAE TURISMO TORRALTA PROJECT . Tróia peninsula in Sado river estuary, 50km south of Site and Location Lisbon. . 385 hectares of an “almost island” character. . 4 hotels (4 and 3 stars) – 1.600 beds. Present facilities . 700 residential apartments. . 18-hole golf course. . Assets in need of mo
Slide 73: Sonae Capital
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Slide 74: Sonae Capital Business Portfolio
# 74 SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Spred Spinveste Choice Car Invicta Capitais Privados Joint -Ventures Construction, Car Hire Transport & Risk capital Real Estate & Retailing & Services & Engineering Barbosa & Almeida (49%) Contacto (100%) Star Transportes BPI Finlog (50%) Portucel