Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (April 2003)
88 slides from Sonae Sgps Sa's investor presentation, April 2003
Slide 1: Sonae SGPS
sonae sgps APRIL 2003 * www.sonae.pt * Data as of 31 December 2002
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 95.72% 50.01% 75.54% (1) 67.04% 82.79% 100% Sonae Modelo SonaeCom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Food Retail Shopping Centres Telecommunications Services (4) Products Non Food Retail Packaging Pulp&Paper S. I. PROPERTY S. I. D
Slide 3: Sonae SGPS Vision and Mission
SONAE SGPS VISION AND MISSION 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. Each business is run by a fully dedicated management team
Slide 4: Sonae SGPS Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain U.K. France Germany Greece Italy South America Africa Brazil South Africa Assets (factories, stores, shopping centres,…) Gabon Admin. and sales offices 58 thousand people 15 countries #4
Slide 5: 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 6: 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 . Win market share Wood Based Products . Improve sales mix (higher added value products) . Optimise use of installed produc
Slide 7: Business Portfolio Development by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2002 - 2007 by Sector 4,483 6,560 C.A.G.R. ∆ CE (2002-2007) Tourism 2% 5% 197 ( + 23%) Telecoms 9% 11% • 8% C.A.G.R. in capital 324 ( + 12%) employed Wood Based 38% 29% 207 ( + 2%) • Strong increase in exposure Prod
Slide 8: Business Portfolio Development by Geography
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2002 - 2007 by Geography C.A.G.R. 4,483 6,560 ∆ CE (2002-2007) Rest of the World 4% 3% 15 ( + 1%) 23% 18% Brazil 138 ( + 3%) • Increase in exposure in Other European countries 18% 23% 685 ( + 13%) Other Europe • Inc
Slide 9: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Euro millions For the year ended 31 December 2002 31.12.02 31.12.01 Turnover 6,275.7 6,385.9 Operating Profit (EBIT) 218.9 226.5 Net Financial Charges (253.4) (190.5) Profit on Ordinary Activities (34.5) 36.1 Extraordinary Profits / (Losses) (26.4) 49.
Slide 10: Turnover
SONAE SGPS TURNOVER – For the year ended 31 December 2002 Euro millions CONTRIBUTION BY SECTOR AND BY GEOGRAPHICAL AREA 6,386 6,276 5,751 Portugal Brazil 5,202 Retail 61% 18% 56% Shopping Centres 3,075 4% 2,585 Rest of 2,255 Europe Telecom. 15% 12% Sonae Rest of the Wood Capital and World Based Hold
Slide 11: EBITDA
SONAE SGPS EBITDA – For the year ended 31 December 2002 Euro millions CONTRIBUTION BY SECTOR 92 4 649 82 Brazil 54 Portugal 243 174 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 11
Slide 12: Net Loss Before Minority Interest
SONAE SGPS NET LOSS BEFORE MIN. INTEREST Euro millions For the year ended 31 December 2002 CONTRIBUTION BY SECTOR 30 98 (84) (20) (49) (73) Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 12
Slide 13: Balance Sheet
SONAE SGPS BALANCE SHEET Euro millions For the year ended 31 December 2002 31.12.02 31.12.01 Fixed Assets * 5,256.5 5,464.2 Stocks 676.6 774.7 Debtors 831.8 1,060.3 Cash and short term investments 302.6 415.6 Deferrals 564.1 566.2 Total Assets 7,967.8 8,281.0 Shareholders’ Funds * 541.7 932.5 Minori
Slide 14: Total Assets
SONAE SGPS TOTAL ASSETS – 31 DECEMBER 2002 Euro millions 8,281 Shopping 7,968 Centres 7,874 13% Retail 5,925 27% Telecom. 4,944 18% Wood Based Sonae Capital Products and Holding 30% 12% 806 836 ** 1998 * 1999 * 2000 2001 2002 * Pro-forma accounts considering the merger between Sonae Investimentos an
Slide 15: Gross Investment
SONAE SGPS GROSS INVESTMENT Euro millions For the year ended 31 December 2002 CONTRIBUTION BY SECTOR AND GEOGRAPHICAL AREA 61 744 Brazil 152 7% 304 Rest of Europe 43% 121 Portugal 106 49% Rest of the World 1% Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 15
Slide 16: Net Debt December 2002
SONAE SGPS NET DEBT – 31 DECEMBER 2002 Euro millions CONTRIBUTION BY SECTOR 996 3,294 463 517 687 631 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 16
Slide 17: 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% 239% 236% 3,900 3,692 215% 3,528 3,377 3,497 3,294 191% 187% 3,173 3,071 172% 175% 171% 2,851 159% 153% 148% 149% 2,501 2,428 135% 131% 124% 2,148 121%
Slide 18: Consolidated Financial Structure: 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 5.6x 5.6x 5.7x 5.1x 4.7x 4.5x 4.4x 3.6x 3.7x 3.0x 3.1x 3.0x 3.1x 2.8x 2.5x 2.4x 2.5x 2.3x 2.1x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Ye
Slide 19: Consolidated Financial Structure by Business
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Euro millions 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 /
Slide 20: Sonae Indústria
sonae indústria
Slide 21: Sonae Indústria Business Portfolio
SIR 100% Eurresinas PORTUGAL Poliface Resoflex 100% Tafiber Tafisa Espanha Taiber 100% Tafisa France SONAE INDÚSTRIA 98% Glunz AG 100% Tafisa UK TAFISA 91.23% BUSINESS PORTFOLIO 67% Tafisa Canada SONAE INDUSTRIA 63% Tafisa Brasil 100% Tafisa South Africa 50% Gescartão (65%) IMOCAPITAL # 21
Slide 22: Indústria Vision and Mission
SONAE INDÚSTRIA VISION AND MISSION Sonae Indústria is one of the worldwide leading companies in the wood based panels industry. After concluding a long and intensive investment plan in 2001, 2002 has been the year of consolidation, towards the best capacity installed usage. Sonae Indústria promotes
Slide 23: Development and Investment - Main Drivers
SONAE INDÚSTRIA DEVELOPMENT AND INVESTMENT - MAIN DRIVERS Main drivers of turnover growth and improvement in operational margins: – New production capacity 9 – Developing operational synergies 9 – Capacity usage optimisation and cost control 9 – Increase market share in high value added products 9 –
Slide 24: Indústria Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE Europe North America Portugal Canada Spain UK France Germany South America Africa South Africa Brazil Gabon 39 Industrial sites in 9 Countries # 24
Slide 25: Wood Based Panels Production Capacity
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY (‘000 cbm/year) 8,471 * 7,603 * 7,276 5,661 + 34% 1999 2000 2001 2002 * Installed capacity excludes Gescartão # 25
Slide 26: Turnover by Product and Market
SONAE INDÚSTRIA TURNOVER – For the year ended on 31 December 2002 By Product By Market Rest of the World 7.7% Others Plywood South Africa Portugal 7.5% 7.5% 5.2% 8.7% Value Added Products South America 14.7% 5.3% Spain MDF 18.5% Hardboard 22.9% 1.7% North America 9.3% UK France Surfaced Particleboar
Slide 27: EBITDA Margin - Iberia and Rest of Europe
SONAE INDÚSTRIA EBITDA MARGIN – IBERIA AND REST OF EUROPE Iberia * France 19% 18% 17% 17% 17% 16% 16% 16% 15% 15% 15% 14% 5% 4% 2% 1% 0,4% 0% -2% -1% -1% -1% -1% -1% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2000 Year 2001 Year 2002 Year 2000 Year 2001 Year 2002 UK
Slide 28: EBITDA Margin - Rest of the World
SONAE INDÚSTRIA EBITDA MARGIN – REST OF THE WORLD Canada Brazil 48% 44% 40% 38% 35% 32% 32%32% 32% 29% 25% 23% 22% 25% 19% 20% 18% 22% 20% 20% 17% 15%16% 13% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2000 Year 2001 Year 2002 Year 2000 Year 2001 Year 2002 South Afri
Slide 29: Indústria Net Debt and Net Gearing
SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 243% 904 867 872 170% 806 822 159% 164% 156% 768 748 777 148% 151%151% 756 143% 706 131% 126% 631 121% 595 112% 111% 112% 107% 107% 102% 96% 70% 1Q 2Q
Slide 30: Indústria Interest Cover
SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.8x 6.5x 6.1x 5.9x 5.6x 5.6x 5.3x 4.7x 4.3x 4.4x 4.1x 3.6x 3.4x 3.1x 3.1x 2.8x 2.5x 2.4x 2.2x 2.3x 2.2x 1.9x 2.1x 1.6x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 31: Sonae Produtos e Derivados Florestais
sonae produtos e derivados florestais
Slide 32: SPDF Pulp & Paper
SONAE PRODUTOS E DERIVADOS FLORESTAIS PULP & PAPER SPDF 100% SONAE WP 29.18% PORTUCEL, SA Main Operational Indicators of Portucel: - Produces BEKP (Bleached Eucalyptus Kraft Pulp) pulp and paper - Total pulp production capacity is approximately 1,220,000 tonnes/year. - Total uncoated woodfree paper
Slide 33: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 34: Modelo Continente Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 90.6% 100% Modelo SONAE Modelo DISTRIB. Continente BRASIL Continente Food Retail Portugal Food and Non-Food Retail Brazil Non-Food Retail BIG Continente Modalfa BIG Eletroeletrónico Modelo Worten Cândia (S.Paulo) Modelo Bonjour Max Mat (50
Slide 35: Distribuição Vision and Mission
SONAE DISTRIBUIÇÃO VISION AND MISSION Modelo Continente is the market leader in Portugal in food retail (hyper and mini-hyper formats). In Brazil, Modelo Continente is the leader in the Southern market and number 3 in the national ranking. Modelo Continente aims to expand its business frontiers, tak
Slide 36: Business Strategy - Value Creation
SONAE DISTRIBUIÇÃO BUSINESS STRATEGY – VALUE CREATION GROWTH VALUE PROPOSAL PORTUGAL Market share consolidation in hypers Supply chain integration and mini-hypers Category management Development of neighbourhood and more convenience formats Information systems development Synergic develo
Slide 37: Current Position - December 2002
SONAE DISTRIBUIÇÃO CURRENT POSITION – 31 December 2002 Brazil y Hypers and Supers y Non food formats y South Region Market Leader (3rd National) y 176 stores (446,000 sqm) y 1,271 M.€ Gross Sales Portugal (3,360 M.R$) y Hypers and Supers y EBITDA/Net Sales 5.0% y Non food formats y Market Leader y 2
Slide 38: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO For the year ended 31 December 2002 Portugal Brazil 103 stores 296,000 sqm 2,306 M. € gross sales Continente Rio Grande do Sul Bonjour Paraná S. Paulo Modelo 161 stores Food based 435,000 sqm S. Catarina formats 1,254 M. € gross sales Worten BIG Eletroelectrónic
Slide 39: Portugal - Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Food based formats – Relative Market Share 32% 20% 12% 11% 11% 8% Sonae 2º 3º 4º 5º 6º Source: UCDR’s Market Share; Modelo Continente estimates 12 month average, as of December 2002 Food based formats – Market Dynamics Sales Area Sales 7% 4% Inflati
Slide 40: Portugal - Portfolio Analysis
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS (a) Gross sales (M. €) Sales Area (´000 sqm) EBITDA Margin (%) 415 9.8% 402 9.5% 2,798 9.1% 327 2,657 2,467 2000 2001 2002 2000 2001 2002 2000 2001 2002 (a) Maxmat is accounted for by the equity method of accounting. Thus its sales are not included in
Slide 41: Portugal - Food and Non Food Formats
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS Gross sales (M. €) Sales area (´000 sqm) EBITDA margin (%) 296 9.7% 9.9% 293 9.4% Food formats 2,306 2,235 262 2,119 2000 2001 2002 2000 2001 2002 2000 2001 2002 Non food formats 492 119 422 109 9.6% 348 8.8% 65 6.6% 2000 2001 2002 2000 2001 2002 2000
Slide 42: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL Total Area (‘000 km2) 8,514 Population (‘000) 169,799 GDP 2001 (b EUR) 564 per capita GDP (EUR) 3,320 North SÃO PAULO • Total Area (´000 km2) 248 • Population (´000) 37,032 (22% total) • GDP 2001 (b EUR) 197 (36% total) • per capita GDP (EUR)
Slide 43: Brazil - Relative Market Share
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Relative market share (Year 2002E) Rio Grande do Sul Paraná 339% 9% 21% 10% 333% 3% 16% 15% Sonae 2nd 3rd Sonae 2nd 3rd Santa Catarina São Paulo 336% 6% 16% 10% 40 % 21% 40% (…) 4% 1st Sonae 3rd 1st 2nd Sonae # 43 MC estimates (4th)
Slide 44: Brazil - Portfolio Analysis
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Gross sales (M. €) Sales Area (´000 sqm) EBITDA Margin (%) 1,671 1,651 446 445 7.7% 7.4% 1,271 5.0% 402 2000 2001 2002 2000 2001 2002 2000 2001 2002 # 44
Slide 45: Distribuição Net Debt and Net Gearing
SONAE DISTRIBUIÇÃO CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 1,101 933 925 381% 884 897 860 789 316% 764 297% 728 284% 687 266% 643 524 204% 193% 170% 96% 93% 91% 70% 75% 77% 82% 80% 64% 64% 59% 43% 1Q 2Q 3Q 4
Slide 46: Distribuição Interest Cover
SONAE DISTRIBUIÇÃO CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 5.1x 4.9x 4.5x 4.4x 4.0x 4.0x 3.8x 3.7x 3.5x 3.5x 3.3x 3.1x 2.8x 2.9x 2.8x 2.9x 2.7x 2.5x 2.5x 2.4x 2.3x 2.2x 2.4x 1.7x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 47: Business Strategy - Outlook
SONAE DISTRIBUIÇÃO BUSINESS STRATEGY – OUTLOOK GROWTH VALUE PROPOSAL Strengthening of leadership Increase in operational in the base market efficiency Taking advantage of the Continuous focus on the potential of the non food client based concepts # 47
Slide 48: Sonae Imobiliária
SONAE IMOBILIARIA sonae ile dilelar:
Slide 49: Business Portfolio - Iberia
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO – IBERIA SONAE IMOBILIÁRIA Shopping Shopping Centres Centres Portugal Spain CascaiShopping1 - (65)2 Centro Colombo1 - (120)2 Parque Principado - Oviedo (25%) - (75)2 CoimbraShopping - (26)2 MaiaShopping - (29)2 Plaza Mayor - Málaga (75%) - (33)2 3 GaiaShopping1 -
Slide 50: Business Portfolio - Rest of Europe and Brazil
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO – REST OF EUROPE AND BRAZIL SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Italy Greece Germany Brazil Austria UNDER DEVELOPMENT UNDER DEVELOPMENT UNDER DEVELOPMENT Shopping Penha (14%) - (18)2 Brescia Centre (100%) - Aegean
Slide 51: Imobiliária Vision and Mission
SONAE IMOBILIÁRIA VISION AND MISSION Sonae Imobiliária is the dominant leader in the Portuguese market, in Shopping Centres development, management and investment. Focus efforts on other markets where it already operates, namely Spain, Italy, Greece, Germany, Austria and Brazil. Maintain a partnersh
Slide 52: Imobiliária Global Strategy
SONAE IMOBILIÁRIA GLOBAL STRATEGY Sonae Imobiliária is an international company with an emphasis in Europe and a strategy built around two vectors: FOCUS GROWTH Integrated view of the Shopping Maintain policy of joint-ventures and Leisure Centre industry and international diversification of acti
Slide 53: Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Number GLA (‘000 sqm) Shopping Centres in operation Portugal 13 597 Spain 6 313 Brazil 6 224 25 1,134 Shopping Centres under development Portugal 4 73 Spain 6 181 Italy 2 76 Greece 2 107 Germany and Austria 3 133 Brazil 1 22 18 592 Shopping Centres under management
Slide 54: Partnership Approach - Portugal
SONAE IMOBILIÁRIA PARTNERSHIP APPROACH - PORTUGAL With the objective of sharing risk and return but also know-how, Sonae Imobiliária has adopted a partnership approach and has established joint-ventures for the development and investment in properties: % Sonae Centers Partners Countries Imobiliária
Slide 55: Partnership Approach - Spain
SONAE IMOBILIÁRIA PARTNERSHIP APPROACH - SPAIN % Sonae Centers Partners Countries Imobiliária Plaza Mayor, Málaga, Spain 75% Castle Management (25%) UK Grupo LAR Grosvenor (25%) Spain Parque Principado, Oviedo, Spain 25% Whitehall Fund (50%) USA Avenida M 40, Madrid, Spain 60% Grupo Eroski Spain Luz
Slide 56: Partnership Approach - Rest of Europe and Brazil
SONAE IMOBILIÁRIA PARTNERSHIP APPROACH – REST OF EUROPE AND BRAZIL % Sonae Centers Partners Countries Imobiliária Parque D. Pedro, SP, Brazil 98.5% Enplanta Engenharia Brazil 3DO, Dortmund, Germany 90% Westdeutsche Immobilien Bank Germany Bautrager Austria Immobilien (BAI) Vienna Mitte, Vienna, Aust
Slide 57: Development - Portugal
SONAE IMOBILIÁRIA DEVELOPMENT - PORTUGAL The total of projects under development as at 31/12/2002 corresponds to an investment of 1,700 M.€, of which 1,328 M.€ are attributable to Sonae Imobiliária, as follows: 73 M.€ in Portugal, Setúbal Retail Coimbra Retail CascaiShopping Estação Viana Parque Atl
Slide 58: Development - Spain
SONAE IMOBILIÁRIA DEVELOPMENT - SPAIN 230 M.€ in Spain, Avenida Málaga Factory Plaza Éboli Luz del Tajo Zubiarte Dos Mares M 40 Outlet Location Madrid Madrid Toledo Bilbao Bilbao Málaga Opening Date Spring 2004 Autumn 2004 Autumn 2004 Autumn 2004 Spring 2004 Spring 2005 GLA (sqm) 47,600 30,000 41,40
Slide 59: Development - Italy
SONAE IMOBILIÁRIA DEVELOPMENT – ITALY 238 M.€ in Italy, Brescia Pavia Centre Centre Location Brescia, Italy Pavia, Italy Opening Date Autumn 2005 Autumn 2005 GLA (sqm) 29,000 47,500 Gross Investment (Euro) 109.2 million 129.2 million Sonae Imobiliária’s shareholding 100% 100% # 59
Slide 60: Development - Greece
SONAE IMOBILIÁRIA DEVELOPMENT – GREECE 97 M.€ in Greece, Aegean M editerranean Park Cosm os L o c a tio n Athens, G reece Salonica, G reece O p e n in g D ate Autum n 2005 Autum n 2004 G L A (sq m ) 60,000 47,000 G ro s s In ve s tm en t (E u ro ) 152.0 m illion 104.0 m illion S o n a e Im o b iliár
Slide 61: Development - Germany and Austria
SONAE IMOBILIÁRIA DEVELOPMENT – GERMANY AND AUSTRIA 661 M.€ in Germany and Austria, 3 DO Alexander Vienna Mitte Dortmund Platz Location Dortmund, Germany Berlin, Germany Vienna, Austria Opening Date Spring 2006 Spring 2006 Autumn 2006 GLA (sqm) 55,000 53,200 24,600 Gross Investment (Euro) 250.0 mill
Slide 62: Development - Brazil
SONAE IMOBILIÁRIA DEVELOPMENT - BRAZIL and 29 M.€ in Brazil. Expansion Boavista Shopping Shopping Penha Location Campinas (SP), Brazil São Paulo, Brazil Opening Date Spring 2004 Autumn 2004 GLA (sqm) 24,000 8,000 Gross Investment (Euro) 18.0 million 11.6 million Sonae Imobiliária’s shareholding 97.5
Slide 63: Shopping Centre Performance
SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (000 sqm) Average Monthly Sales per sqm YTD (EUR) 120 Centro Colombo 469 110 Parque Dom Pedro * 399 72 NorteShopping 473 65 CascaiShopping 480 57 GaiaShopping 298 56 Arrábida Shopping 237 48 Vasco da Gama 437 42 AlgarveShopping 288 33
Slide 64: Sales Growth 2002 vs. 2001
SONAE IMOBILIÁRIA SALES GROWTH – 2002 vs. 2001 GuimarãesShopping 12.6% NorteShopping 11.6% Sintra Retail Park 16.9% Viacatarina 9.2% MaiaShopping 11.2% CascaiShopping 1.5% GaiaShopping 10.7% CoimbraShopping 3.3% Vasco da Gama 1.4% Centro Colombo 0.4% # 64
Slide 65: Imobiliária Management
SONAE IMOBILIÁRIA MANAGEMENT Sonae Imobiliária manages 1.5 thousand sqm of GLA in Portugal, Spain and Brazil: a growth of 44% compared to 2001 Managed GLA trend (000's sqm) GLA under management by geographical area Average increase of 1,517 154 thousand sqm of GLA / Year Brazil 1,128 20% 959 893 Por
Slide 66: NAV of Total Properties and Loan / Value
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE NAV of Total Properties Loan / Value (values in Euro million) (NAV of Sonae Imobiliária’s share) 1,037 934 37% 752 35% 643 29% 22% 459 379 13% 12% 1997 1998 1999 2000 2001 2002 1997 1998 1999 2000 2001 2002 # 66
Slide 67: Imobiliária Net Debt and Net Gearing
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 244% 694 217% 600 469 467 160% 153% 436 141% 148%141% 424 406 420 130% 336 112%119% 319 105% 97% 289 258 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 68: Imobiliária Net Debt / EBITDA and Interest Cover
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt / EBITDA (b) Interest Cover (EBITDA / Interest Paid) 8.2x 7.2x 6.8x 6.1x 5.8x 5.7x 5.6x 5.7x 5.6x 5.4x 5.0x 5.1x 3.6x 3.5x 3.6x 3.4x 3.1x 3.0x 3.0x 2.9x 2.7x 2.7x 2.5x 2.6x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 69: Sonae Com
sonae com
Slide 70: SonaeCom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 46.29% 56.67% 100% 100% Software Multimedia and Mobile Fixed and Internet Systems Integration Optimus Novis Publico We Do Consulting (100%) Clix (56.67%) Enabler (100%) 20.18% 43.33% 43.33% France Telecom (1) 52.34% of voting rights # 70
Slide 71: Com Vision and Mission
SONAE COM VISION AND MISSION SonaeCom aims to be the recognized expert leading alternative communications services provider in Portugal to corporate, SME, residential and wholesale customers offering mobile, fixed and internet access as well as applications and content. To achieve this goal and to s
Slide 72: Current Position of Business
SONAE COM CURRENT POSITION OF BUSINESS SonaeCom actively manages a portfolio of four main divisions and exploits Group synergies through a Shared Services division. • 22.3% market share of the Portuguese mobile market Optimus • Leads mobile data market : data is 10% of customer revenues • Leads the
Slide 73: Looking Forward
SONAE COM LOOKING FORWARD SonaeCom will continue to seek ways of reducing costs and working capital management without imparing future growth. SonaeCom will promote new revenue initiatives SonaeCom will improve operating profitability SonaeCom will expect for an efficient regulatory framework for th
Slide 74: SonaeCom - Active Customers
SONAE COM SONAECOM – ACTIVE CUSTOMERS Active customers continue to grow quarter on quarter. At the end of year 2002, SonaeCom’s total client base amounted more than 2.5 million active customers. 2,487 2,514 2,405 2,432 2,326 60 56 56 2,153 54 51 236 226 Clix Público 244 233 2% 1,971 232 112 9% 56 12
Slide 75: SonaeCom - Total Traffic Data
SONAE COM SONAECOM – TOTAL TRAFFIC DATA Between mobile and fixed voice, Internet and data traffic, SonaeCom generated more than 5.1 billion minutes of traffic in the year of 2002. 1,323 1,258 1,287 1,264 1,221 1,173 1,105 473 Clix 425 414 987 463 33% 433 469 417 395 167 164 212 129 168 130 Optimus 1
Slide 76: Optimus - Subscriber Growth and Market Share
SONAE COM OPTIMUS – SUBSCRIBER GROWTH AND MARKET SHARE Optimus subscribers, EOP (000’s) Overall market share, EOP (000’s) 2,120 Optimus Vodafone TMN 2,063 1,970 2,000 1,916 1,791 4,223 4,671 4,931 5,193 5,768 6,664 7,136 7,561 8,083 8,608 8,790 8,956 9,583 1,650 1,511 1,410 46% 45% 45% 45% 45% 44% 4
Slide 77: Optimus - ARPU
SONAE COM OPTIMUS – ARPU ARPU (Euro/sub/month) 40 38 36 34 32 Euros 30 28 26 24 22 20 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 1999 Year 2000 Year 2001 Year 2002 Optimus Vodafone TMN The changes in interconnection tariffs explained the fluctuations in ARPU. # 77
Slide 78: Novis - Network and Market Penetration
SONAE COM NOVIS – NETWORK AND MARKET PENETRATION Altnet Market Share Business Segment Current Network Roll-Out Altnets Novis Jazztel Oni Vodafone Others 23.4 23.5 22.7 Fibre Backbone Kms (EOP) Extension 1,642 Fibre Pairs Installed 4,056 8.3 8.3 7.9 MAN Kms Lisbon and Porto (EOP) 6.4 5.6 6.3 5.2 5.1
Slide 79: Novis - Traffic on Novis Network
SONAE COM NOVIS – TRAFFIC ON NOVIS NETWORK (million of minutes) Internet Voice 2,491 685 2,194 631 498 598 592 583 254 563 544 489 1,435 56 1,940 1,993 1,378 Year 2000 Year 2001 Year 2002 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2001 Year 2002 Novis generated over 600 million minutes of traffic on its network e
Slide 80: Matrix - Internet and Multimedia
SONAE COM MATRIX – INTERNET AND MULTIMEDIA Clix Active Dial-up users and connection time Pageviews per month (millions) Active Dial-up users Total minutes connection time 250 500 473 469 463 Clix Publico.pt 433 425 450 12 417 232 244 233 415 395 12 12 200 216 400 12 236 226 12 370 203 12 189 350 12
Slide 81: Financial Progress - Turnover
SONAE COM FINANCIAL PROGRESS Euro millions Turnover – Stand alone Accounts Optimus Novis 40 41 171 39 166 161 37 37 155 152 146 143 131 134 125 109 25 23 93 21 19 10 7 6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2000 Year 2001 Year 2002 Year 2000 Year 2001 Year 200
Slide 82: Financial Progress - EBITDA
SONAE COM FINANCIAL PROGRESS Euro millions EBITDA Eliminating SAC deferral – Stand alone Accounts Optimus Novis 41 34 35 33 24 -1 21 17 17 -5 -4 15 16 12 -7 -8 -8 5 -11 -11 -12 -12 -14 -14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2000 Year 2001 Year 2002 Year 2000
Slide 83: Financial Progress - CAPEX
SONAE COM FINANCIAL PROGRESS Euro millions CAPEX (excl. capitalised costs) * Optimus Novis Matrix 131 ** 16 11 11 11 3.4 10 54 8 8 2.4 2.4 2.1 2.0 6 5 4 1.5 32 26 25 26 27 23 4 1.0 1.2 21 19 20 21 3 1.0 0.5 0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 84: SonaeCom Net Debt and Net Gearing
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 548 572 513 472 457 467 129% 124% 429 115% 116% 380 378 100%104% 348 95% 86% 91% 89% 82% 86% 79% 81% 74% 65% 58% 60% 216 35% 142 23% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 85: SonaeCom Interest Cover
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 10.8x 9.5x 9.2x 8.2x 8.2x 7.7x 6.5x 5.1x 4.9x 5.2x 4.0x 4.2x 4.2x 3.7x 3.7x 3.1x 3.2x 2.5x 2.6x 1.9x 2.1x 1.5x 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year 2000 Year 200
Slide 86: Sonae Capital
sonae capital
Slide 87: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Hotel Management Construction & Resort Manag. Engineering, & Develop. Joint -Ventures Car Hire Transport Venture Leisure & Risk Capital Residential & Retailing & Logistics Capital Fitness & Sport Development Travel Sonae Turismo SPRED Choice Car Solinca
Slide 88: Capital Vision and Mission
SONAE CAPITAL VISION AND MISSION Sonae Capital concentrates its strategic investments within sectors undergoing consolidation. Sonae Capital develops businesses to take a leading role in their industries. Sonae Capital generates options and future opportunities OBJECTIVE Add value and take advantage