Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2005)
55 slides from Sonae Sgps Sa's investor presentation, September 2005
Slide 1: Sonae SGPS September 2005
sonae sgps SEPTEMBER 2005 * * Data as of 30 June 2005 (consolidated figures shown in this presentation regarding 2004 and 2005 are in accordance with International Financial Reporting Standards – IFRS. Previous year’s figures are in accordance with Portuguese GAAP – POC).
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* = 17% businesses. Financial control of non strategic Parque D. Pedro (Brazil) and bu
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 97.02% 98.06% (1) 67.04% 66.73% (2) 100% Sonae Modelo Sonaecom Sonae Indústria Continente Sonae Sierra Capital Wood Based Food Retail Shopping Centres Telecommunications Services (4) Products Non Food Retail SIERRA INVEST. SIERRA DEVEL . SIERRA BRAZIL SIERRA
Slide 5: Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain United Kingdom France Germany Switzerland Greece Italy The Netherlands Luxembourg South America Africa Brazil South Africa Gabon Sonae is present in 14 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: Sonae Indústria Business Portfolio
Euroresinas 100% Movelpartes SIR Resoflex Tafiber 100% Taiber Tafisa Iberia SIND - PCDM 100% Tafisa France SONAE INDÚSTRIA 99% Glunz AG 100% Tafisa UK TAFISA 91.16% BUSINESS PORTFOLIO 100% Tafisa Canada SONAE INDUSTRIA 63% Tafisa Brazil 100% Tafisa South Africa #8
Slide 10: Global Presence: Production sites in 8 countries
SONAE INDÚSTRIA GLOBAL PRESENCE 35 Production sites in 8 Countries Canada Portugal United France Particle Board Kingdom Particle Board Particle Board Surfaced Board MDF(1) Particle Board MDF(1) Surfaced Board Surfaced Board Surfaced Board High Pressure Laminates OSB(2) Germany Particle Board MDF(1)
Slide 11: Wood Based Panels Production Capacity and Sales
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY AND SALES Production Capacity (‘000 m3/year) * +40% After a heavy investment period up to 2001 (EUR 1.2 billion), 8.371 production capacity was 6.942 7.482 7.339 7.339 reduced due to the shut-down of 5.255 old and obsolete plants, as initially pl
Slide 12: Sonae Indústria Consolidated Figures
SONAE INDÚSTRIA CONSOLIDATED FIGURES Million euro Turnover Turnover by Product T&G / CTS (1) (3) 12,7% MDF 1,580 20,9% 1,502 1,480 1,441 1,294 Others 9,6% Hard Board 1,0% 737 745 (4) Particle Board 19,6% Surfaced Board 27,9% OSB(2) 8,3% 2000 2001 2002 2003 2004 1H'05 Turnover by Market 227 EBITDA Ot
Slide 13: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 14: Sonae 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. VISION Expand its business frontiers, taking advant
Slide 15: Sonae Distribuição Guidelines: Outlook
SONAE DISTRIBUIÇÃO GUIDELINES In Portugal, the company’s aim will be to implement expansion projects that will OUTLOOK make it possible to accomplish its strategic growth plan, continue its innovative approach and optimise internal processes that support the growing focus on the customer. Under the
Slide 16: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 97.67% Modelo Sonae Distrib. Continente Brazil Food Retail Non-Food Retail Food Retail Brazil Continente Modalfa BIG* Modelo Worten Mercadorama (Paraná) Modelo Bonjour Max Mat (50%) Nacional (Rio Grande do Sul) SportZone MAXXI (Rio Grande
Slide 17: Current Position - June 2005
SONAE DISTRIBUIÇÃO CURRENT POSITION – 30 June 2005 Brazil y Hypers and Supers y Non food formats y Southern Region Market Leader (4th National) Portugal y 160 stores (372,000 sqm) y Hypers and Supers y 720 M.€ Gross Sales y Non food formats y Market Leader y 304 stores (459,000 sqm) y 1,368 M.€ Gros
Slide 18: Portugal - Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL - RETAIL MARKET Food based formats – Relative Market Share x 1,6 29% x 2,1 x 2,5 x 2,7 Mod. Cont. 2nd 3rd 4th 5th Source: UCDR’s Market Share; Modelo Continente estimates. 12 month average, as of June 2005 Food based formats – Market Dynamics Sales Area Sales ~3% Inflatio
Slide 19: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL - RETAIL MARKET Food based formats: Southern market (RGS, SC, PRN) – Relative Market Share x 2,7 30% x 3,3 x 5,0 x 6,0 SDB 2nd 3rd 4th 5th Source: Modelo Continente estimates. June 2005 Food based formats – Market Dynamics S. Paulo Sonae Paraná Abras Santa Catarina ~7% Infl
Slide 20: Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Gross Sales (M. €) EBITDA Margin (%) 4,308 4,136 4,069 4,159 3,984 8.8% 8.4% 8.4% 8.3% 7.8% 7.1% 7.0% 2,088 1,856 2000 2001 2002 2003 2004 1H'05 2000 2001 2002 2003 2004 1H'05 Sales Area (‘000 sqm) Number of Stores 846 860 860 870 831 * 760 452 464 427 435 413
Slide 21: Sonae Sierra
sonae sierra * * Formerly Sonae Imobiliária
Slide 22: Sonae Sierra Guidelines
SONAE SIERRA GUIDELINES Sonae Sierra 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 Centres Conc
Slide 23: Sierra Shopping Centres
SONAE SIERRA SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 34 Shopping Centres, equal to 1.4 million m2 of GLA 14 in Portugal (639 thousand m2) 11 in Spain (478 thousand m2) 2 in Italy (83 thousand m2) 7 in Brazil (245 thousand m2) … manages… a total of 2.0 million m2 of GLA in Portug
Slide 24: Portugal - Shopping Centres in operation and under development
SONAE Sierra PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov. 2003) – (GLA: 18,545 m2) MaiaShopping (Nov. 1997) – (GLA: 28,949 m2) Sonae Sierra (100%) Sonae Sierra (100%) 1 GuimarãeShopping (Feb. 1995) – (GLA: 26,770 m2) Sonae Sierra (100%) 1 NorteShopping (Oct. 199
Slide 25: Spain - Shopping Centres in operation and under development
SONAE Sierra SPAIN - Shopping Centres in operation and under development Parque Principado (Apr. 2001) – (GLA: 74,780 m2) Valle Real (Nov. 1994) – (GLA: 47,830 m2) Zubiarte (Nov. 2004) – (GLA: 20,577 m2) Sonae Sierra (50%) / Whitehall Fund and Lar Grosvenor (50%) 1 Sonae Sierra (50%) / ING Real Esta
Slide 26: Other Europe - Shopping Centres in operation and under development
SONAE SIERRA OTHER EUROPE - Shopping Centres in operation and under development Caselle (Autumn 2008) Mediterranean Cosmos (October 2005) Torino Thessalonica (GLA: 85,700 m2) (GLA: 46,560 m2) Owner: Sonae Sierra (100%) Owner: Sierra Charagionis (39.9%) / Lamda Development (60.1%) Biella (Autumn 2007
Slide 27: Brazil - Shopping Centres in operation and under development
SONAE SIERRA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct. 1997), Brasília – (GLA: 31,216 m2) Owner: Sonae Sierra (5.2%) / Others (94.8%) Parque D. Pedro (Mar. 2002) – (GLA: 109,324 m2) Owner: Sonae Sierra (97.9%) / Enplanta Engenharia (2.1%) Boavista Shopping (27 A
Slide 28: Sierra Consolidated Financial Structure
SONAE SIERRA CONSOLIDATED FINANCIAL STRUCTURE (a) Million euro Net Profits before Min. Int. EBITDA 108 98 96 249 74 149 55 57 121 127 46 63 73 50 2000 2001 2002 2003 2004 1H'05 2000 2001 2002 2003 2004 1H'05 Market Value of Investments NAV per Share (€) 3,646 3,341 35.28 2,868 32.60 2,561 29.16 2,23
Slide 29: Sierra Operational Indicators
SONAE SIERRA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management 1,839 1,970 (geographical breakdown) Brazil 1,564 13% 1,517 Italy 11% Portugal 47% Spain 29% 2002 2003 2004 1H'05 Sales and Visits 3,212 2,865 382 410 2003 2004 Sales (million euro) Visits (millions) # 28
Slide 30: Sonaecom
sonae com
Slide 31: Sonaecom Guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 3 main business divisions: Telecommunications (Optimus, Novis and Clix), Media (Publico) and Sofware & Systems Integration (Wedo, Enabler, Bizdirect and Mainroad) Sonaecom’s ambition is to be the best Por
Slide 32: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% 100% Software Media & Telco Systems Integration Publico We Do Consulting (100%) – Telecom (1) (2) (2) (2) 69.24% 100% 100% Systems & Software Developer Enabler (64%) – Retail Systems Integrator & Software Developer Mobile Fixed Internet Mainroad (57%)
Slide 33: Sonaecom Consolidated Key Figures
SONAE COM SONAECOM - CONSOLIDATED KEY FIGURES (a) Million euro Turnover EBITDA 201 880 838 789 733 146 98 429 84 406 72 2001 2002 2003 2004 1H'05 2001 2002 2003 2004 1H'05 Free Cash-Flow (55) CAPEX 62 197 35 (2) 2001 2002 2003 2004 1H'05 (17) 127 123 122 (55) 65 50 2001 2002 2003 2004 1H'05 (268) (a
Slide 34: Sonaecom Operational Indicators
SONAE COM OPERATIONAL INDICATORS By the end of the first half of 2005, Sonaecom had 2.4 million telecom customers and generated 4.2 billion minutes of voice, data and internet traffic Novis 44% Optimus 90% 2.4 million Novis 4.2 billion customers 8% minutes Clix Clix 23% 2% Optimus 33% # 33
Slide 35: Optimus - Mobile Competitive Landscape
SONAE COM OPTIMUS - MOBILE COMPETITIVE LANDSCAPE Optimus entered the market 7 years ago, 10 years later than TMN and 6 years later than Vodafone It is one of the most successful third operators in Europe with a market share of around 20% Focused on creating new market segments (Optimus Home – fixed-
Slide 36: Novis - The Fixed Altnet Leader
SONAE COM NOVIS - THE FIXED ALTNET LEADER Novis leads altnets in its key market segments: SME and SoHo; and is the second largest provider of wholesale traffic; Novis core segments are SoHos and SMEs, with a clear focus on providing direct access solutions. One of Novis’ key activities is the optimi
Slide 37: 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 38: 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 The sixth largest IT/IS group in Portugal Apart from a strong foothold in the Portuguese market, Enabler and WeDo
Slide 39: Sonae Capital
sonae capital
Slide 40: Sonae Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital generates options and future growth in construction and engineering, tourism, transport 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 41: 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 42: Sonae Capital Aggregated Figures
SONAE CAPITAL AGGREGATED FIGURES Million euro Refrigeration, Turnover Air Conditioning and Cleaning Transport and Services 832 Logistics 758 6% 6% 684662 653 626 554 553 Glass Containers 2 Plywood1 22% 17% 2000 2001 2002 2003 2004 Residential Development Car Hire and 2% Retailing EBITDA 101 12% 85 C
Slide 43: Sonae SGPS
sonae sgps
Slide 44: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro For the half year ended 30 June 2005 30.06.2005 30.06.2004 Turnover 3,205.3 3,034.8 Operational Cash-Flow (EBITDA) 447.5 410.5 Operational Profit (EBIT) 267.9 236.3 Net Financial Charges (84.4) (112.9) Share of Results of Associated Undert
Slide 45: Turnover
SONAE SGPS TURNOVER Million euro SECTOR BREAKDOWN Wood Based 737 6,634 Panels 745 6,386 6,276 6,260 6,464 5,751 1,805 Retail 5,202 1,609 Shopping 131 Centres 120 3,205 3,035 406 Telecom. 429 Sonae Capital 260 and Holding 217 1999 * 2000 2001 2002 2003 2004 H1'05 (134) Eliminations POC IFRS (85) H1’0
Slide 46: EBITDA
SONAE SGPS EBITDA Million euro SECTOR BREAKDOWN 938 Wood Based 104 Panels 106 779 127 Retail 112 649 649 604 546 Shopping 119 Centres 93 439 448 411 88 Telecom. 101 Sonae Capital 7 and Holding 16 3 1999 * 2000 2001 2002 2003 2004 H1'05 Eliminations (17) H1’04 POC IFRS * Pro-forma accounts considerin
Slide 47: Profit for the Period
SONAE SGPS PROFIT FOR THE PERIOD Million euro SECTOR BREAKDOWN 73 3 228 13 73 46 20 Wood Based Retail Shopping Telecom. Sonae Capital Eliminations TOTAL Products Centres and Holding # 46
Slide 48: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 30 June 2005 30.06.2005 31.12.2004 Investment Properties 2,491.8 2,204.8 Tangible Assets 3,087.8 3,117.4 Intangible Assets 341.5 335.3 Goodwill 552.8 453.2 Other Non-Current Assets 435.5 434,7 Total Non-Current Assets 6,909.4 6,545.5 Stocks 725.7 67
Slide 49: Total Assets - June 2005
SONAE SGPS TOTAL ASSETS – 30 June 2005 Million euro 1,676 8,598 8,829 Wood Based Panels 8,281 1,775 7,874 7,968 7,675 7,555 2,205 Retail 5,925 2,754 2,792 Shopping Centres 2,628 1,140 Telecom. 1,066 750 Sonae Capital and Holding 374 1999 * 2000 2001 2002 2003 2004 H1'05 266 POC IFRS Eliminations 200
Slide 50: Net Debt - June 2005
SONAE SGPS NET DEBT – 30 June 2005 Million euro SECTOR BREAKDOWN 149 3,330 605 276 975 728 597 Wood Based Retail Shopping Telecom. Sonae Capital Eliminations TOTAL Products Centres and Holding # 49
Slide 51: Consolidated Financial Structure: Net Debt
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE NET DEBT Million euro 4.500 4.000 3.899 3.500 3.330 3.214 3.111 3.074 3.000 2.851 2.822 2.574 2.503 2.500 2.000 1.500 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 1Q04 2Q04 2Q04 3Q04 4Q04 4Q04 1Q05 2Q05 IFRS IFRS IFR
Slide 52: Consolidated Financial Structure: Net Gearing
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE NET GEARING (Net Debt/Shareholders’ Funds + Minority Interests) 300% 282% After Goodwill 250% elimination against reserves 209% 200% 172% 171% 159% 193% 155% 152% 149% 150% 121% IFRS 123% 125% 100% Before Goodwill elimination against reserves 50% 1Q00 2Q00
Slide 53: Consolidated Financial Structure
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 (b) Net Debt / E
Slide 54: Sonae Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Continue to deliver operational improvements Consolidate market leadership positions Development of new shopping centres in target markets Spin-off of Sonae Indústria Reposition the Group in the equity markets # 53
Slide 55: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt