Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (November 2001)
59 slides from Sonae Sgps Sa's investor presentation, November 2001
Slide 1: Sonae SGPS November 2001
sonae sgps NOVEMBER 2001 www.sonae.pt
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 92.49% 100% 70.41% 51.19% 79.17% 100% 100% Sonae Modelo Sonae SonaeCom Sonae Indústria Continente Imobiliária Sonae Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Non Food Retail Car Parks communications
Slide 3: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Emerging Businesses Growth Businesses Mature Businesses Options for potential future development High growth businesses Mature businesses with with potential for strong profit
Slide 4: Business Portfolio Configuration: Sonae Distribuição
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE DISTRIBUIÇÃO (RETAIL) SONAE also aims to foster the dynamics of growth within each business by stimulating the development of similarly balanced portfolios within each sector Horizon 3 Horizon 2 Horizon 1 B2C Portugal Food Retail – Brazil Retail Fran
Slide 5: Current Sectorial Strategy
SONAE SGPS CURRENT SECTORIAL STRATEGY To concentrate resources on businesses with the highest value creation potential and where SONAE has or can achieve competitive leadership Wood Based Panels . Complete restructuring in France and Germany by end 2001 . Consolidate high growth / high profitability
Slide 6: Value Creation by Sonae 1986-2001
SONAE SGPS VALUE CREATION BY SONAE 1986 - 2001 Total Return for Shareholders Market Capitalization (Euro millions) Sonae SGPS PSI 30 4,764 7.000 6.577 6.000 5.143 5.000 3.924 4.000 3.721 3.303 3.000 3.079 2.682 2.041 1,390 2.000 1.746 900 894 1.324 1.000 770 666 702 531 509 BASE=100 472 0 Dez-85 Dez
Slide 7: Prospective Capital Employed 2001-2006 by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2001 - 2006 by Sector ∆ CE ( ) C.A.G.R. 4.326 6.765 (2001-2006) • 9% C.A.G.R. in capital Tourism 3% 5% 222 ( + 23%) employed 10% 13% Telecoms 447 ( + 15%) • Strong increase in exposure Wood Based to Shopping Centres
Slide 8: Prospective Capital Employed 2001-2006 by Region
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2001 - 2006 by Region 4.326 6.765 ∆ CE ( ) C.A.G.R. (2001-2006) Rest fo the World 4% 3% • Strong increase in exposure Brazil 22% 20% 373 ( + 7%) to other EU countries Other Europe 20% 29% 1,086 ( + 18%) • Decrease o
Slide 9: Consolidated Results for the 3rd Quarter 2001
SONAE SGPS CONSOLIDATED RESULTS Euro millions FOR THE 3rd QUARTER 2001 3Q 00 3Q 01 ∆ Turnover 4,262.9 4,650.6 +9.1% • An increase of 9.1% in Turnover. The main Operating profit (EBIT) 139.8 125.5 -10.3% contributors to this growth Net Financial Charges (104.9) (131.3) +25.1% were the Telecommunicati
Slide 10: Turnover 3rd Quarter 2001
SONAE SGPS TURNOVER – 3rd QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR AND BY GEOGRAPHY 5,751 Retailing 5,202 58% Portugal Brazil 59% 23% 4,651 4,263 3,075 2,585 Shopping 2,255 Centres 4% Rest of Europe Telecoms 15% 11% Others Rest of the Wood 3% Based World 1996 1997 1998 * 1999 * 2000 3Q 2001
Slide 11: Operating Profit 3rd Quarter 2001
SONAE SGPS OPERATING PROFIT – 3rd QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR 37 (53) (3) (10) Brazil 126 38 102 Portugal 15 Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 11
Slide 12: EBITDA 3rd Quarter 2001
SONAE SGPS EBITDA – 3rd QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR 29 1 (6) 404 50 Brazil 71 Portugal 148 111 Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 12
Slide 13: Consolidated Financial Structure
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Borrowings Net Gearing Interest Cover (Euro million) 191% 3,377 3,173 172% 175% 3,7x 3,071 3,6x 159% 2,851 3,1x 3,0x 3,0x 2,577 2,428 133 % 2,148 121% 124 % 2,5x 2,3x 98% 93% 83% 1Q 1H 3Q 4Q 1Q 1H 3Q 1Q 1H 3Q 4Q 1Q 1H 3Q 1Q 1H 3Q 4Q 1Q 1H 3Q 2000 2000
Slide 14: Sonae Indústria
& ) SONAE INDUSTRIA sonae Whaveleksnaate:
Slide 15: Sonae Indústria Business Portfolio
Euroresinas 100% Poliface SIR Resoflex 100% Tafiber Tafisa Espanha Taiber 100% Tafisa France SONAE INDÚSTRIA 98% Glunz 100% 91,23% Tafisa UK TAFISA BUSINESS PORTFOLIO 60% Tafisa Canada SONAE INDUSTRIA 63% Tafisa Brasil 100% Tafisa South Ifloma Africa 50% Gescartão IMOCAPITAL # 15
Slide 16: Indústria Sales 3rd Quarter 2001
SONAE INDÚSTRIA SALES – 3rd QUARTER 2001 By Product By Market Rest of the World 5% Plywood South Africa Others 4% 9% 1% Germany Hardboard Rest of Europe 17% 3% 11% Surfaced 31% MDF 24% France North America 19% 9% South America 4% OSB 2% Particleboard Iberian Peninsula 30% UK 23% 8% Leading world man
Slide 17: EBITDA Margin – Iberia and Rest of Europe
SONAE INDÚSTRIA EBITDA MARGIN – IBERIA AND REST OF EUROPE Iberia France 17% 16% 17% 17% 15% 15% 15% 5% 4% 2% 0,4% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 -2% -1% -1% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 UK Germany 11% 7% 9% 5% 4% 5% 5% 3% 2% 1% 1% -2% -3% -2% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q
Slide 18: EBITDA Margin – Other Countries
SONAE INDÚSTRIA EBITDA MARGIN – OTHER COUNTRIES Canada Brazil 48% 44% 40% 35% 32% 32% 32% 29% 32% 25% 19% 20% 18% 13% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 South Africa 27% 19% 20% 9% 4Q 00 1Q 01 2Q 01 3Q 01 # 18
Slide 19: Restructuring & Expansion
SONAE INDÚSTRIA RESTRUCTURING & EXPANSION Closures in 2001 Openings in 2001 . UK - EDB (March 2001) . Spain - Linares (Particle Board – 450.000 m3) – July 2001 . France - Tarnaise Labruguière (April 2001) - Cuellar (Sawmill – 90.000 m3) – February 2001 . France - Ussel (Flooring – 6.400.000 m3) – Ja
Slide 20: Restructuring and Expansion
SONAE INDÚSTRIA RESTRUCTURING AND EXPANSION . Complete restructuring of production base in France and Germany by end 2001 Northern Europe . Expand capacity of high growth products: Flooring, OSB . Develop UK market position backed by new capacity brought on stream 1H 2000 . Consolidate market (30% o
Slide 21: Sonae Distribuição
sonae [elisisaneluirercre
Slide 22: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 88,15% 100% Modelo SONAE Modelo DISTRIB. Continente BRASIL Continente Food Retail Portugal Food Retail Brazil Non-Food Retail BIG Continente Modalfa Cândia (S.Paulo) Modelo Worten Mercadorama (Paraná) Modelo Bonjour Max Mat (50%) Nacional
Slide 23: Distribuição Current Position – 3rd Quarter 2001
SONAE DISTRIBUIÇÃO CURRENT POSITION – 3rd QUARTER 2001 Food Retail Portugal Food Retail Brazil Non Food Retail Portugal High medium-term growth Rapidly maturing market Fragmented market potential Eur 1,620 * 106 gross sales Eur 1,204 * 106 gross sales Eur 266 * 106 gross sales (+ 7 % YoY) (- 10 % Yo
Slide 24: Distribuição Business Portfolio - 1999
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1999 Modalfa 1999 high Worten high Continente Modelo medium S. Catarina Profitability medium RGS (Brazil) Paraná Vobis S. Paulo (Brazil) Bonjour Max Mat low Sport Zone low low defying high Market share # 24
Slide 25: Distribuição Business Portfolio - 2002
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 2002 Modalfa Continente 2002 Worten high S. Catarina Modelo Paraná S. Paulo (Brazil) RGS (Brazil) medium Profitability New state Bonjour Max Mat in Brazil Vobis Sport Zone e-commerce low low defying high Market share # 25
Slide 26: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO Food Non Food FORMATS: FORMATS: ! Hyper ! Home Appliances ! Computer products ! Mini-Hyper ! Apparel ! Construction ! Supers ! Sport goods materials Portugal 52% 9% Leadership in a mature 35% 10% Synergic growth market 25% 31% FORMATS: ! Hyper ! Supers Gross Sal
Slide 27: Distribuição Portugal – Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Food based formats – Market Leader 32% 21% 11% 11% 11% 7% Sonae JM Intermarché Carrefour Auchan Lidl and Minipreço Source: UCDR’s Market Share; Modelo Continente estimates 12 month average, as of September 2001 Non Food based formats Worten Market l
Slide 28: Distribuição Portugal – Portfolio 3rd Quarter 2001
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 3rd QUARTER 2001 3Q 2001 Gross Sales: 1,886 M. Euro Sales Area sq.m: 387.000 m2 Nr stores: 229 Main formats Stores Sq.m (000) (At 29 Oct. 2001) Continente Hypermarkets 13 127 Modelo Mini-Hypermarkets 61 139 Modelo Bonjour Supermarkets 22 17 Worten Home applian
Slide 29: Distribuição Brazil – Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL SÃO PAULO • Total Area (´000 km2) 248 " Total Area (‘000 km2) 8,514 • Population (´000) 36,969 (22% total) " Population (‘000) 169,590 • GDP (b EUR) 212 (36% total) " GDP (b EUR) 599 " per capita GDP (EUR) 3,530 • per capita GDP (EUR) 5,742 (1.6x nati
Slide 30: Distribuição Brazil – Portfolio 3rd Quarter 2001
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 3rd QUARTER 2001 3Q 2001 Gross Sales: 1,204 M. Euro (2,440 mn R$) Sales Area sq.m: 444.000 m2 Nr stores:171 Main formats Stores Sq.m (000) (At 29 Oct. 2001) São Paulo BIG Hypermarkets (1) 16 96 Paraná BIG Hypermarkets 10 58 Mercadorama Supermarkets (2) 31 44 Rio
Slide 31: Distribuição Gross Sales – Global Portfolio
SONAE DISTRIBUIÇÃO GROSS SALES – GLOBAL PORTFOLIO 2000 1Q 01 2Q 01 3Q 01 2,120 1,671 603 365 541 419 349 476 420 103 87 76 Food Retail Food Retail Brazil Non Food Retail Portugal Portugal # 31
Slide 32: Continuous Investment in the Base Market
SONAE DISTRIBUIÇÃO CONTINUOUS INVESTMENT IN THE BASE MARKET Total sq.m +42.000 831.000 +39.000 750.000 444.000 402.000 Brazil + 81.000 sqm [ + 11 % ] Portugal 348.000 387.000 2000 Portugal Brazil 3Q 2001 Expansion Figures include Maxmat # 32
Slide 33: Distribuição EBITDA / EBIT Performance
SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro millions EBITDA 105 199 168 34 155 63 4Q 149 74 4Q 71 64 3Q 23 3Q Portugal 58 3Q 34 3Q Brazil 48 29 29 42 19 2Q 2Q 2Q 2Q 36 1Q 37 1Q 18 19 1Q 1Q 1998 1999 2000 2001 1998 1999 2000 2001 EBIT 134 44 38 109 103 100 48 20 4Q 4Q 29 12 3Q 48 3Q Portugal 42
Slide 34: Distribuição Strategic Guidelines
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Context Strategic guidelines . Sector consolidation . Continuous investment in the base market . Pro-active stance in the concentration movements in the Iberian Peninsula and Latin America . Consumer focus . Reinforce value proposal and operational efficiency
Slide 35: Business Strategy – Value Creation
SONAE DISTRIBUIÇÃO BUSINESS SRATEGY – VALUE CREATION GROWTH OPERATIONAL EFFICIENCY PORTUGAL Supply chain integration " consolidation of market share through hyper & mini-hyper formats Category management " development of neighourhood and - ECR partnership more convenience formats - own labels - spac
Slide 36: Sonae Imobiliária
sonae Miaaleleiitclate
Slide 37: Imobiliária Business Portfolio
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe CascaiShopping1 (63)2 Centro Colombo1 (120)2 Parque Principado (25%) Shopping Penha (14%) (70)2 - Spain 3DO – Spring 2006 CoimbraShopping
Slide 38: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Number GLA ( ‘000 m2) Shopping Centres in operation Portugal * 12 551 Brazil 5 109 Spain 1 70 18 730 Shopping Centres under development Portugal 1 20 Spain 3 86 Greece 1 60 Brazil 1 105 ** 5 271 Shopping Centres under management Portugal 792 Spain 141 Brazil 109 1,
Slide 39: Imobiliária Development and Investment
SONAE IMOBILIÁRIA DEVELOPMENT AND INVESTMENT Equity GLA Gross Investment Opening Stake (000 m2) (EUR x 109) Plaza Mayor 75% 28 49,5 Spring 2002 (Malaga – Spain) Avenida M40 (Madrid – Spain) 60% 41 56,5 Spring 2003 Aegean Park (Athens – Greece) 50% 60 152,0 Spring 2004 3DO (Dortmund – Germany) - 55 2
Slide 40: Imobiliária Shopping Centre Performance
SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (thousand sq. m) Average Monthly Sales per sq.m in 3Q 01 (EUR) Colombo 120 Colombo 418 NorteShopping 72 NorteShopping 376 CascaiShopping 63 CascaiShopping 428 GaiaShopping 57 GaiaShopping 256 Vasco da Gama 48 Vasco da Gama 402 Algarve
Slide 41: Sales Growth 3Q 00/3Q 01
Colombo 3% NorteShopping 15% SONAE IMOBILIÁRIA CascaiShopping 17% GaiaShopping 6% MaiaShopping 11% CoimbraShopping 9% SALES GROWTH 3Q 00/3Q 01 GuimarãeShopping 34% Viacatarina -3% Vasco da Gama 8% # 41
Slide 42: Sonae.com
& ) SONAE.COM
Slide 43: Com Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 45.89% 56.67% 100% 100% Mobile Fixed Data Multimédia SonaeCom and IT and Internet Ventures Optimus Novis Publico JVs & Alliances: Publico.pt Modelo.com (JV Sonae Retail) (25%) Clix (56.67%) BizDirect (Digital Marketplace JV) 20.00% 43.33% 43.33% Miau.pt (70.
Slide 44: Optimus – Subscriber Growth
SONAE COM OPTIMUS – SUBSCRIBER GROWTH Optimus subscribers, EOP (000’s) 1791 1650 1511 1410 1153 At the end of September 2001 Optimus had 1.8 1002 million customers. 81% were pre-paid 918 subscribers. 817 683 564 Mobile penetration in Portugal stood at 80.8% Source: Operators 2Q 99 3Q 99 4Q 99 1Q 00
Slide 45: Optimus – Market Share
SONAE COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) 3.456 3.754 4.933 5.193 5.765 6.716 6.965 7.561 8.083 Optimus aims to achieve more than its 45% 45% 45% 45% 44% 45% 44% 45% natural share of net adds to guarantee 46% continued market share growth. In just 3 years of operation, Opti
Slide 46: Optimus – ARPU Evolution
SONAE COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 40,0 36,0 34,6 34,2 34,2 33,8 33,3 33,9 31,2 31,4 31,8 33,3 32,1 32,0 31,0 31,2 31,9 32,0 29,5 29,2 30,6 30,2 30,4 30,0 29,7 29,0 29,4 28,0 28,7 28,5 29,1 28,2 27,4 24,0 20,0 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 0
Slide 47: Novis – Network Roll-out
SONAE COM NOVIS – NETWORK ROLL-OUT Fibre Backbone Kms September 01 Extension 685 Fibre Pairs Installed 1.018 MAN Kms (Lisbon+Porto) September 01 Fibre Cable Installed 146 Fibre Pairs Installed 2.364 Microwave Link 174 FWA September 01 Nr. Base Stations: - Installed 21 - In operation 20 Coverage (sqk
Slide 48: Novis – Total Active Customers Indirect Access
SONAE COM NOVIS – TOTAL ACTIVE CUSTOMERS INDIRECT ACCESS (EoP) 70,148 48,978 42,337 36,134 15,137 14,401 13,496 13,974 3,216 4,202 842 250 1,932 322 347 685 2000 1Q 01 2Q 01 3Q 01 Residential SOHO SME Corporate Novis increased its total indirect active customers by 33% in 3rd Quarter 2001 to 89 thou
Slide 49: Novis – Direct Access Customers and Traffic
SONAE COM NOVIS – DIRECT ACCESS CUSTOMERS AND TRAFFIC Direct Access (EoP) Traffic data (millions minutes) 500 500 600 563 544 450 407 500 489 400 275 350 400 288 352 300 220 250 300 197 169 200 200 150 139 225 100 187 100 119 50 58 0 0 2000 1Q 01 2Q 01 3Q 01 2Q 00 1Q 01 2Q 01 3Q 01 FWA Excluding FWA
Slide 50: Matrix – Internet and Multimedia
SONAE COM MATRIX – INTERNET and MULTIMEDIA Pageviews per month (millions) Unique visitors (thousands) Clix Subscribers, EOP (000’s) 994 1.200 1000 879 65,0 1.100 60,0 900 12 759 1.000 55,0 290 800 50,0 900 12 641 700 45,0 800 13 221 266 40,0 700 600 515 170 35,0 600 430 500 30,0 12 500 116 51 400 25
Slide 51: Com Financial Progress – Turnover
SONAE COM FINANCIAL PROGRESS Euro millions Turnover – Stand alone Accounts Optimus Novis 167 146 25 134 127 130 23 111 94 13 11 12 7 8 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 Clix * Publico 5 10 9 10 4 8 8 8 2 2 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 4Q 00 1Q
Slide 52: Com Financial Progress – EBITDA
SONAE COM FINANCIAL PROGRESS Euro millions EBITDA Eliminating SAC deferral – Stand alone Accounts Optimus Novis 21 17 17 15 16 12 -7 -8 -11 -11 -12 -14 -14 5 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 Clix Publico 4Q 00 1Q 01 2Q 01 3Q 01 9 10 8 8 -3,4 -3 -2,8
Slide 53: Com Financial Progress – CAPEX
SONAE COM FINANCIAL PROGRESS Euro millions CAPEX (excl. capitalised costs) * Optimus Novis Matrix 131 ** 11 11 11 8 2,4 5 2,1 4 1,5 32 1,0 21 25 26 27 3 19 0,5 0,1 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 * Contribution t
Slide 54: Sonae Turismo
an TURISMO sonae hiuulals pale
Slide 55: Turismo Business Portfolio
SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotel Management Resort Leisure Travel Management Fitness & Development & Sports Porto Palácio Troia Resort Entertainment (Fun Center) Business travel Aqualuz Lagos Properties Health Club Leisure tr
Slide 56: Turismo Business Areas
SONAE TURISMO BUSINESS AREAS To be the leader of tourism industry in Portugal: Having as core business the development of «tourism– Corporate Travelling real estate» resorts at an international scale, integrating all the key skills of related business, which Leisure Travelling provide a number of co
Slide 57: Turismo Investment Projects
SONAE TURISMO INVESTMENT PROJECTS Tróia Resort - Setúbal . Mission: Develop a tourism platform in the Tróia Peninsula, benefiting and capitalizing on its environmental, natural and cultural resources Palmares Resort – Lagos, Algarve . Mission: Develop a golf and real estate platform . Reconditioning
Slide 58: Sonae Capital
, ! SONAE CAPITAL sonae |(@=) ®)he=)
Slide 59: Capital Business Portfolio
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 ba vidros (49%) Contacto (100%) Finlog (50%) Star Transportes Change Partners (25%) Sel