Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (April 2007)
47 slides from Sonae Sgps Sa's investor presentation, April 2007
Slide 1: Sonae
sonae * Data as of 31 December 2006 under International Financial Reporting Standards (IFRS)
Slide 2: The History of Sonae Over the Last 40 Years
SONAE 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* = 14% businesses. Financial control of non strategic Parque D. Pedro (Brazil) and busines
Slide 3: Sonae Group - Current Position
SONAE 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 bet
Slide 4: Business Portfolio
Continente Modelo Modelo Bonjour Worten Modalfa Sport Zone Vobis SONAE Retail MaxMat Portugal Modelo Continente Zippy 100% (1) Software & Systems Information Food and Non Food Star Worten Mobile Área Saúde SIERRA INVESTMENT SIERRA DEVELOPMENT Italy Spain Greece Portugal Germany Sierra Sonae SIERRA M
Slide 5: Sonae Distribuição
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Slide 6: Guidelines, Vision and Mission
SONAE GUIDELINES Modelo Continente is the market leader in Portugal in food retail, and has a leading position in various non food retail markets. Expand its business frontiers, taking advantage of existing resources, VISION competencies and strategic links. Offer the best value proposal, based on t
Slide 7: Strategic Guidelines
SONAE STRATEGIC GUIDELINES take full advantage of all opportunities to grow in the Portuguese market, taking advantage of synergies on competencies and internal resources Growth further studies to support the possibility of expanding current businesses into new geographical areas fine tune the organ
Slide 8: Outlook 2007
SONAE OUTLOOK 2007 • Progress on the implementation of the expansion programme in Portugal (a 10% increase over present sales area) • Opening of 10 food stores • Opening of nearly 90 non-food stores, equal to more than 35,000 m2 • Maintain a modern store portfolio, through the refurbishment of more
Slide 9: Continente Business Portfolio
SONAE BUSINESS PORTFOLIO CONTINENTE Food Retail Non-Food Retail Hypermarkets Consumer Elect. Computers Mobile communic. Hypermarkets Sports Goods Kidswear Apparel DIY Supermarkets Pharmacies Travel Agencies #8
Slide 10: Sonae Distribuição Key Facts
3 SONAE DISTRIBUIGAO KEY FACTS ‘www.modelocontinente.pt. No.1 retailer 3.1 Bn€ in Portugal turnover (with food and non food retail) (205,000 articles in portfolio) ~25,000 ~543,000 employees sqm sales area © continente M Modelo 1G Magelo (in 480 stores) oe om e 7 ZIPPY 3,500 2,400,000 = : suppliers
Slide 11: Consolidated Figures
SONAE CONSOLIDATED FIGURES Turnover (M. ) EBITDA (M. ) 3,091 2,621 2,745 2,474 2,576 252 254 242 233 235 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 POC IFRS Sales Area (‘000 sqm) Number of Stores 480 543 335 495 427 433 282 415 258 270 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 # 10
Slide 12: Sonae Sierra
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Slide 13: Sonae Sierra Guidelines
SONAE 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, owning or co-owning MISSION and managing Shopping Centres. Co
Slide 14: Shopping Centres
SONAE SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 43 Shopping Centres, equal to 1.6 million m2 of GLA 19 in Portugal (751 thousand m2) 11 in Spain (480 thousand m2) 9 in Brazil (312 thousand m2) 2 in Italy (73 thousand m2) 1 in Greece (46 thousand m2) 1 in Germany (26 thousand m2) …
Slide 15: Portugal - Shopping Centres in Operation and Under Development
SONAE PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov.03) – GLA: 18,556 m2 MaiaShopping (Nov.97) – GLA: 28,949 m2 Sonae Sierra (100%) Sonae Sierra (100%) Lima Retail Park (2007) – GLA: 10,723 m2 NorteShopping (Oct.98) – GLA: 72,041 m2 Sonae Sierra (50%) / Miller Dev
Slide 16: Spain - Shopping Centres in Operation and Under Development
SONAE SPAIN - Shopping Centres in operation and under development Parque Principado (Apr.01) Valle Real (Nov.94) Oviedo - GLA: 75,542 m2 Santander – GLA: 47,826 m2 Sonae Sierra (25%)1 / Lar-Grosvenor Sonae Sierra (50%)1 / ING Real Estate Group and Whitehall Fund (50%) Zubiarte (Nov.04) Bilbau - GLA:
Slide 17: Other Europe - Shopping Centres in Operation and Under Development
SONAE OTHER EUROPE - Shopping Centres in operation and under development Mediterranean Cosmos (Oct.05) Gli Orsi (2008) Thessalonica - GLA: 46,000 m2 Biella - GLA: 40,000 m2 Sierra Charagionis (39.9%) / Sonae Sierra (100%) Lamda Development (60.1%) Le Terrazze (Spring 2009) Galatsi Olympic Hall (2008
Slide 18: Brazil - Shopping Centres in Operation and Under Development
SONAE BRAZIL - Shopping Centres in operation and under development Manaus Shopping (2008) Manaus – GLA: 43,126 m2 Sonae Sierra Brasil (50%) / Developers Diversified (50%) Shopping Campo Limpo (2006) São Paulo – GLA: 20,000 m2 Sonae Sierra Brasil (20%) /Tivoli EP (80%) Shopping Penha (Oct.93/Oct.04 -
Slide 19: Consolidated Figures
SONAE CONSOLIDATED FIGURES Million euro Net Profit EBITDA 150 271 249 126 219 108 95,5 98 149 127 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Market Value of Investments NAV per Share ( ) 4,728 4,096 45.82 3,341 38.90 2,868 2,745 2,561 2,498 32.60 27.67 29.16 1,907 1,471 1,589 '12/02 '12/03 '1
Slide 20: Operational Indicators
SONAE OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 2,025 2,001 Brazil 16% 1,839 Greece 2% Portugal 1,564 46% 1,517 Italy 7% 2002 2003 2004 2005 2006 Spain Sales and Visits 29% 4,104 3,888 3,212 2,865 382 410 424 402 2003 2004 2005 2006 Sales (mill
Slide 21: Sonaecom
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Slide 22: Mission and Looking Forward
SONAE ! 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, Bizdirect, Mainroad and Saphety) Sonaecom’s ambition is to be the best Portu
Slide 23: Business Portfolio
SONAE ! BUSINESS PORTFOLIO " COM 100% 100% 99% 100% Telco Telco Media SSI (1) Mobile Fixed (1) Software and Systems Information # 22
Slide 24: Consolidated Figures
SONAE ! CONSOLIDATED FIGURES Million euro Turnover EBITDA 880 201 838 843 836 789 184 157 146 72 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Free Cash-Flow CAPEX 254 62 254 * 35 13 127 141 2002 2003 2004 2005 2006 123 122 (55) (82) * 2002 2003 2004 2005 2006 * Includes PT Shares (106 M. ) # 23
Slide 25: Optimus - Growth Initiatives
SONAE ! OPTIMUS – GROWTH INITIATIVES Optimus, launched in 1998, has consolidated its market position in Portugal, with 2.6 million subscribers and a market share of 20%, at the end of 2006 Increase of revenue Launch of new wireless convergent and internet products per client Focus on younger consume
Slide 26: Sonaecom Fixed - Growth Initiatives
SONAE ! SONAECOM FIXED – GROWTH INITIATIVES Sonaecom Fixed leads altnets in its key market segments: SME1 and SoHo2 and is the second largest provider of wholesale traffic. Increase direct access Expansion of direct broadband business Lead innovation in the broadband market Wholesale growth Pioneer
Slide 27: Público - Operational Performance Under Pressure
SONAE ! PÚBLICO – OPERACIONAL PERFORMANCE UNDER PRESURE Público is the 3rd Portuguese daily paper in terms of paid circulation, with a 12.9% market share at September 2006, and a 15.3% market share in advertising, at the end of 2006. MARKET SHARE PAID CIRCULATION MARKET SHARE ADVERTISING January – S
Slide 28: S&SI - Focus on International Growth
SONAE ! S&SI – FOCUS ON INTERNATIONAL GROWTH The Software & Systems Information (S&SI) division brings together companies such as WeDo, Bizdirect, Mainroad and Saphety. G Promote and Explore international growth opportunities O A Generate “best in class” EBITDA margins L Launch and grow focused IT b
Slide 29: Sonae Capital
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Slide 30: Sonae Capital Guidelines
SONAE ! GUIDELINES Sonae Capital aims to: Develop businesses that are: complementary to the activities of the other sub holdings, taking advantage of synergies within the Sonae Group able to take a leading role in their industries, growing outside the Group in their respective markets Generate optio
Slide 31: Sonae Capital Business Portfolio
SONAE ! BUSINESS PORTFOLIO " $CAPITAL Insurance Tourism Engineering Services and Facility Brokerage and Seed and Risk Capital (Resorts & Hotels) Real Estate Development Management Risk Management # 30
Slide 32: Consolidated Figures
SONAE ! CONSOLIDATED FIGURES Million euro Turnover 576 560 Insurance 526 Brokerage and 479 461 Risk Management 412 662 450 3% 626 553 Seed and Risk Capital 50% Facility Management 18% 2000 2001 2002 2003 2004 2005 2006 Aggregated Figures Consolidated Figures POC IFRS 41 EBITDA 44 Engineering Service
Slide 33: Sonae Consolidated
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Slide 34: Consolidated Profit and Loss Account
SONAE CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro 2006 2005 ∆% Turnover 4,383.8 4,116.9 + 6.5 Value Created on Investment Properties 129.9 98.0 + 32.6 Other Operational Income 422.9 411.8 + 2.7 Operational Costs (4,324.6) (4,062.4) + 6.5 Operational Cash-Flow (EBITDA) 599.1 553.3 + 8.3 Operati
Slide 35: Turnover Sector Breakdown
SONAE TURNOVER Million euro SECTOR BREAKDOWN 3.097 6,386 Retail 6,276 6,260 6,464 6,392 2.745 5,751 5,202 Shopping 147 Centres 4,384 136 4,117 ** 836 Telecom. 843 467 Sonae Capital & Holding 566 1999 * 2000 2001 2002 2003 2004 2005 2006 (163) Eliminations POC IFRS (173) FY’05 * Pro-forma accounts co
Slide 36: Operational Cash Flow (EBITDA) Sector Breakdown
SONAE OPERATIONAL CASH FLOW (EBITDA) Million euro SECTOR BREAKDOWN 948 938 253 Retail 236 649 637 Shopping 192 604 599 546 Centres 156 553 ** 439 146 Telecom. 161 11 Sonae Capital & Holding 5 1999 * 2000 2001 2002 2003 2004 2005 2006 (3) Eliminations (5) POC IFRS FY’05 * Pro-forma accounts consideri
Slide 37: Profit for the Period Sector Breakdown
SONAE PROFIT FOR THE PERIOD Million euro SECTOR BREAKDOWN 78 339 132 (2) (31) 162 Retail Portugal Shopping Centres Telecom. Sonae Capital & Eliminations 2006 Holding # 36
Slide 38: Consolidated Balance Sheet
SONAE CONSOLIDATED BALANCE SHEET Million euro 2006 2005 Investment Properties 1.520,2 1.357,4 Tangible and Intangible Assets 2.396,1 2.229,6 Goodwill 250,8 245,6 Other Non-Current Assets 411,5 301,9 Stocks 481,2 460,5 Trade Debtors and Other Current Assets 565,3 788,7 Investments 33,3 10,7 Cash and
Slide 39: Total Assets
SONAE TOTAL ASSETS Million euro 8.598 2,370 8.281 Retail 7.874 7.968 7.675 2,445 6.307 6.321 Shopping 1,769 5.925 Centres 1,563 1,229 Telecom. 1,182 1,066 Sonae Capital & Holding 1,486 1999 * 2000 2001 2002 2003 2004 2005 2006 (113) Eliminations POC IFRS (369) 31 December 2005 * Pro-forma accounts c
Slide 40: Net Debt - 31 December 2006 Sector Breakdown
SONAE NET DEBT – 31 December 2006 Million euro SECTOR BREAKDOWN 377 Retail 2,822 196 Shopping 533 Centres 2,063 499 337 1,913 * Telecom. 1,620 250 722 Sonae Capital & Holding 501 2004 2005 2006 94 Eliminations 174 31 December 2005 * Excluding the contributions of Sonae Indústria and Sonae Distribuiç
Slide 41: Gross Investment Sector and Geographical Breakdown
SONAE GROSS INVESTMENT AS AT 31 DECEMBER 2006 Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 661 91 Portugal 253 86% 111 Brazil 206 1% Rest of Europe 13% Retail Shopping Centres Telecom. Sonae Capital and TOTAL Holding # 40
Slide 42: Consolidated Financial Structure - Net Debt
SONAE CONSOLIDATED FINANCIAL STRUCTURE Million euro NET DEBT Million euro NET NETDEBT DEBT Million euro NET DEBT Million euro 4,500 4,000 3,899 3,337 3,500 3,330 3,214 3,071 3,074 3,000 2,822 2,574 2,500 2,176 2,064 2,063 1,913 2,000 1,684 1,620 1,500 1,000 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q
Slide 43: Consolidated Financial Structure - Net Gearing
SONAE CONSOLIDATED FINANCIAL STRUCTURE NET GEARING (Net Debt/Shareholders’ Funds + Minority Interests) 300% 282% After Goodwill 250% elimination against reserves 209% 200% 172% 171% 193% 149% 155% 145% 150% 132% 121% 127% 145% 110% Before Goodwill elimination 123% 125% 100% 122% against reserves 106
Slide 44: Consolidated Financial Structure by Business
SONAE 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 Net Debt / EBITDA Ret
Slide 45: Share Performance
SONAE SHARE PERFORMANCE The Sonae SGPS share ended the year of 2006 quoted at 1.51 euro, corresponding to a nominal gain of 28.0% which compares with a general stock market gain of 29.9% as measured by the Portuguese Stock Market Index (PSI 20). Transaction volume Sonae SGPS's share price million eu
Slide 46: Sonae Group Strategic Priorities
SONAE SONAE GROUP STRATEGIC PRIORITIES Continue to deliver operational improvements. Consolidate market leadership positions. Continue the search for value enhancing opportunities in existing businesses as well as in new ones. Maintain an attitude of permanent attention to new business opportunities
Slide 47: www.sonae.pt
SONAE This presentation is available at the official Sonae SGPS website www.sonae.pt