Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (May 2004)
60 slides from Sonae Sgps Sa's investor presentation, May 2004
Slide 1: Sonae SGPS
sonae sgps MAY 2004 * * Data as of 31 December 2003
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* = 18% businesses. Financial control of non strategic Acquisition of Gescartão busine
Slide 3: Sonae Group - Current Position
SONAE SGPS SONAE GROUP - CURRENT POSITION The role of Sonae SGPS is to manage a portfolio of diversified businesses by setting strategic guidelines and objectives, monitoring their performance, fostering synergies between them and identifying new business opportunities Sonae SGPS, focuses its activi
Slide 4: Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 95.87% 100% 75.68% (1) 67.04% 82.79% 100% Sonae Modelo Sonaecom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Food Retail Shopping Centres Telecommunications Services (5) Products Non Food Retail Packaging Pulp&Paper S. I. PROPERTY S. I. DEV
Slide 5: Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain United Kingdom France Germany Greece Italy South America Africa Brazil South Africa Gabon Sonae is present in 11 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: Indústria Guidelines
SONAE INDÚSTRIA GUIDELINES Sonae Indústria is the leading world manufacturer of Wood Based Products in terms of 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 operations Imp
Slide 9: Indústria Business Portfolio
SONAE INDÚSTRIA BUSINESS PORTFOLIO SONAE INDUSTRIA 94.42% TAFISA 100% 100% 100% 98% 100% 67% 63% 100% 50% Tafisa Canada IMOCAPITAL Tafisa France Tafisa South Tafisa Spain Tafisa Brazil Glunz AG Tafisa UK Africa SIR Movelpartes Tafiber Taiber Eurresinas Gescartão Resoflex (65%) (a) (a) Sonae Indústri
Slide 10: Indústria Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE 36 Production sites in 8 Countries Canada Portugal United France Particle Board Kingdom Particle Board Particle Board Surfaced Board MDF MDF Particle Board Surfaced Board Surfaced Board Surfaced Board High Pressure Laminates Soft Board OSB Germany Particle Board MDF B
Slide 11: Wood Based Panels Production Capacity and Sales
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY AND SALES Production Capacity (‘000 m3/year) * 8,398 7,509 7,378 6,969 5,255 + 40% 40% After a heavy investment period (EUR 1.2 billion), production capacity was reduced due to the shut-down of old and obsolete plants, as initially planned. 1999
Slide 12: Indústria Consolidated Figures
SONAE INDÚSTRIA CONSOLIDATED FIGURES Million euro Turnover Turnover by Product Gescartão 12,4% MDF 19% 1,502 1,480 1,441 1,474 * 1,294 Others 26% Particle Board 14% Hard Board 1,1% OSB 5% Surfaced Board 22% 2000 2001 2002 2003 Turnover by Market EBITDA Rest of the World Portugal 15.2% 11.9% South Af
Slide 13: Sonae Produtos e Derivados Florestais
sonae produtos e derivados florestais
Slide 14: Produtos e Derivados Florestais - Pulp & Paper
SONAE PRODUTOS E DERIVADOS FLORESTAIS PULP & PAPER SPDF 100% SONAE WP 25% PORTUCEL, SA Key Operational Indicators of Portucel: - Produces BEKP (Bleached Eucalyptus Kraft Pulp) pulp and paper - Total pulp production capacity is approximately 1,240,000 tonnes/year. - Total uncoated woodfree paper prod
Slide 15: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 16: 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. Expand its business frontiers, taking advantage of
Slide 17: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 94.47% Modelo SONAE DISTRIB. Continente BRAZIL Food Retail Non-Food Retail Food Retail Brazil Continente Modalfa BIG* Modelo Worten Mercadorama (Paraná and Santa Catarina) Modelo Bonjour Max Mat (50%) Nacional (Rio Grande do Sul) SportZone
Slide 18: Distribuição Current Position - December 2003
SONAE DISTRIBUIÇÃO CURRENT POSITION - 31 December 2003 Brazil y Hypers and Supers y Non food formats y Southern Region Market Leader (4th National) Portugal y 165 stores (434,000 sqm) y Hypers and Supers y 1,079 M.€ Gross Sales y Non food formats (3,732 M.R$) y Market Leader y 270 stores (427,000 sq
Slide 19: Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Gross Sales (M. €) EBITDA Margin (%) 4,319 * 4,308 4,136 4,069 3,984 8.8% 8.4% 8.4% 8.3% 2000 2001 2002 2003 2000 2001 2002 2003 * At constant exchange rates Sales Area (‘000 sqm) Number of Stores 846 860 860 760 427 435 413 372 2000 2001 2002 2003 2000 2001 2
Slide 20: Portugal - Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL - RETAIL MARKET Food based formats – Relative Market Share 30% x 1,6 x 2,4 x 2,7 x 2,7 Mod. Cont. 2nd 3rd 4th 5th Source: UCDR’s Market Share; Modelo Continente estimates. 12 month average, as of December 2003 Food based formats – Market Dynamics Sales Area Sales 6% 5% 3.
Slide 21: Portugal - Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL - RETAIL MARKET Leader • 1,157 M. € of Gross Sales • 15 stores • 136,000 sqm Food Based Formats Sub-leader 2,251 M. € of Gross Sales • 1,012 M. € of Gross Sales 106 stores • 65 stores • 140,000 sqm 297,000 sqm New entrant • 82 M. € of Gross Sales • 26 stores • 21,00
Slide 22: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL - RETAIL MARKET BRAZIL Total Area (‘000 km2) 8,514 Population (‘000) 176,871 GDP 2003 (b EUR) 438 per capita GDP (EUR) 2,477 SÃO PAULO • Total Area (´000 km2) 248 • Population (´000) 39,013 (22% of total) • GDP 2003 (b EUR) 146 (33% of total) • per capita GDP (EUR)
Slide 23: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL - RETAIL MARKET Southern Leader States Hipers • 28 stores Main Southern Brazil Operators Market Share – 31 December 2003 • 165,000 sqm Supers 26% 29% • 90 stores • 120,000 sqm 11% Electronics * 8% 6% 6% 5% 4% • 10 stores 2% • 8,000 sqm Wholesale Sonae 2nd 3rd 4th 5th 6th 7t
Slide 24: Sonae Imobiliária
SONAE IMOBILIARIA sonae ile dilelar:
Slide 25: Imobiliária Guidelines
SONAE IMOBILIÁRIA GUIDELINES Sonae Imobiliária 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 Ce
Slide 26: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Currently, Sonae Imobiliária… … owns or co-owns… 30 Shopping Centres, equal to 1.2 million m2 of GLA 18 in Portugal (14 Shopping Centres, 2 Retail Parks and 2 Galleries) (668 thousand m2) 6 in Spain (312 thousand m2) 6 in Brazil (222 thousand m2) … manages… a total
Slide 27: Portugal - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov. 2003) – (GLA: 18,588 m2) MaiaShopping (Nov. 1997) – (GLA: 28,967 m2) Sonae Imobiliária (100%) Sonae Imobiliária (100%) 1 GuimarãeShopping (Feb. 1995) – (GLA: 26,770 m2) NorteShopping (Oct. 1998) – (G
Slide 28: Spain - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA SPAIN - Shopping Centres in operation and under development Parque Principado (Apr. 2001) – (GLA: 75,542 m2) Valle Real (Nov. 1994) – (GLA: 47,830 m2) UNDER DEVELOPMENT: Sonae Imobiliária (25%) / Whitehall Fund and Lar Grosvenor Sonae Imobiliária (50%) / ING Real Estate (50%) 1 Zub
Slide 29: Other Europe - Shopping Centres Under Development
SONAE IMOBILIÁRIA OTHER EUROPE - Shopping Centres under development Mediterranean Cosmos (Spring 2005) Salonika (GLA: 47,000 m2) Owner: Sonae Charagionis (39.9%) / Brescia Centre (Spring 2006) Lamba Development (60.1%) Brescia (GLA: 29,000 m2) Aegean Park (Autumn 2006) Owner: Sonae Imobiliária (50%)
Slide 30: Brazil - Shopping Centres in Operation and Under Development
SONAE IMOBILIÁRIA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct. 1997), Brasília – (GLA: 31,119 m2) Owner: Sonae Imobiliária (5.2%) / Others (94.8%) Parque D. Pedro (Mar. 2002) – (GLA: 108,979 m2) Owner: Sonae Imobiliária (97.9%) / Enplanta Engenharia (2.1%) Shopping
Slide 31: Imobiliária Consolidated Financial Structure
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Million euro Net Profits after Min. Int. EBITDA 209 144 121 96 98 74 63 55 2000 2001 2002 2003 2000 2001 2002 2003 Market Value of Investments NAV per Share (€) 2,868 2,561 1,944 27.67 29.16 1,582 24.90 1,480 1,471 20.05 1,064 854 '12/00 '12/01
Slide 32: Imobiliária Operational Indicators
SONAE IMOBILIÁRIA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 1,564 1,517 Brazil 1,128 Italy 14% 4% 959 Portugal 60% Spain 22% 2000 2001 2002 2003 Sales and Visits 2,865 2,495 1,888 1,647 307 377 382 289 2000 2001 2002 2003 Sales (million euro) V
Slide 33: Sierra Fund
SONAE IMOBILIÁRIA SIERRA FUND On 30 September 2003, Sonae Imobiliária European Retail Real Estate Asset Holdings B.V. (“SIERRA Fund”) was created, with €1.08 billion of Equity Third-party Equity capital of €540 million Institutional Investors includes an initial investment of €368 million ABP in c
Slide 34: Sonaecom
sonae com
Slide 35: Com Guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 4 main business divisions: Mobile (Optimus), Fixed (Novis), Media & Internet (Publico and Clix) and Sofware & Systems Integration (Wedo, Enabler, Bizdirect and Mainroad) Sonaecom’s ambition is to be the b
Slide 36: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 46.29% 56.67% 100% 100% Software Media & & Mobile Fixed Internet Systems Integration Optimus Novis Publico We Do Consulting (100%) – Telecom Clix (56.67%) Systems & Software Developer Enabler (66%) – Retail Systems Integrator 20.18% 43.33% 43.33% & Software
Slide 37: Sonaecom - Consolidated Key Figures
SONAE COM SONAECOM - CONSOLIDATED KEY FIGURES (a) Million euro Turnover EBITDA 146 838 789 733 72 2001 2002 2003 2001 2002 2003 (55) Gross Investment Free Cash-Flow 35 197 2001 2002 2003 (55) 127 123 2001 2002 2003 (268) (a) Sonaecom presented in 2003, for the first time, its consolidated financial
Slide 38: Com Operational Indicators
SONAE COM OPERATIONAL INDICATORS By the end of 2003, Sonaecom had 2.7 million customers and generated 5.9 billion minutes of voice, data and internet traffic Novis 23% Optimus 85% 2.7 million 5.9 billion Clix customers minutes 32% Novis 8% Optimus Clix 45% 7% # 37
Slide 39: Optimus - Mobile Competitive Landscape
SONAE COM OPTIMUS - MOBILE COMPETITIVE LANDSCAPE Optimus entered the market 5 years ago, 10 years later than TMN and 6 years later than Vodafone Since launch, it has captured 26% of new market entrants and is one of the most successful third operators in Europe with a market share of over 22% Data i
Slide 40: Novis - The Fixed Altnet Leader
SONAE COM NOVIS - THE FIXED ALTNET LEADER Principal activity is the optimisation of communication and network management for the Sonaecom Group Novis leads altnets in its key market segments: SME and SoHo Novis has repositioned its business to focus on core segments, SoHos and SMEs and wholesale bus
Slide 41: 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 42: 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 Apart from a strong foothold in the Portuguese market, Enabler and WeDo have important international customers in
Slide 43: Sonae Capital
sonae capital
Slide 44: Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital generates options and future growth in construction and engineering, tourism, logistics 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 45: 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 (50%) S
Slide 46: Capital Aggregated Figures
SONAE CAPITAL AGGREGATED FIGURES Million euro Refrigeration, Air Conditioning Turnover Transport and and Cleaning Logistics Services 5% 6% 662 758 626 684 653 Plywood 1 553 554 13% Glass Containers Residential 24% Development 1% 2000 2001 2002 2003 Construction, Car Hire and EBITDA Energy and Retail
Slide 47: Sonae SGPS
sonae sgps * Data as of 31 December 2003
Slide 48: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro For the year ended 31 December 2003 2003 2002 Turnover 6,259.7 6,275.7 Operational Profit (EBIT) * 203.2 218.9 Net Financial Charges (228.8) (253.4) Profit/(Loss) on Ordinary Activities (25.6) (34.5) Extraordinary Profit/(Loss) 330.8 (26.4
Slide 49: Turnover - Sector and Geographical Breakdown
SONAE SGPS TURNOVER Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 6,579 ** Retail 6,386 6,276 6,260 57% 5,751 5,202 Portugal 63% Brazil 20% Shopping Centres 4% Telecom. 12% Rest of Europe Sonae 14% Wood Capital & Rest of Based Holding the World Products 5% 3% 1999 * 2000 2001 2002 2003 22% * Pro-fo
Slide 50: EBITDA - Sector Breakdown
SONAE SGPS EBITDA Million euro SECTOR BREAKDOWN 131 655 * 637 (5) 70 290 151 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding * At constant exchange rates # 49
Slide 51: Net Profit Before Minority Interests
SONAE SGPS NET PROFIT BEFORE MINORITY INTERESTS Million euro SECTOR BREAKDOWN 381 (49) 265 (90) 84 (61) Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 50
Slide 52: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 31 December 2003 2003 2002 Fixed Assets * 5,037.9 5,256.5 Stocks 680.1 676.6 Debtors 783.0 831.8 Cash and short term investments 651.6 638.8 Deferrals 522.1 564.1 Total Assets 7,674.7 7,967.8 Shareholders’ Funds * 582.5 541.7 Minority Interests 749.
Slide 53: Total Assets - 31 December 2003
SONAE SGPS TOTAL ASSETS – 31 December 2003 Million euro 8,281 Shopping 7,874 7,968 7,675 Centres 16% 5,925 Retail 28% Telecom. 18% Wood Based Sonae Capital Products and Holding 27% 11% 756 ** 1999 * 2000 2001 2002 2003 * Pro-forma accounts considering the merger between Sonae Investimentos and Inpar
Slide 54: Gross Investment
SONAE SGPS GROSS INVESTMENT Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 68 666 129 Brazil 280 7% Rest of Europe 128 22% Portugal 70% Rest of the 61 World 1% Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 53
Slide 55: Net Debt - December 2003
SONAE SGPS NET DEBT – 31 December 2003 Million euro SECTOR BREAKDOWN 633 2,574 412 265 601 663 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 54
Slide 56: 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% 3,899 261% 3,497 3,692 253% 3,528 3,600 239% 3,377 3,332 236% 3,294 222% 3,173 3,269 215% 3,071 2,851 191% 187% 193% 2,501 2,574 175% 172% 171% 2,428 1
Slide 57: Consolidated Financial Structure: Net Debt/EBITDA, Interest Cover
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.1x 6.0x 6.1x 5.8x 5.7x 5.6x 5.6x 5.6x 5.7x 5.1x 5.2x 5.1x 4.7x 4.5x 4.4x 4.0 x 3.7x 3.6x 3.1x 3.0x 3.1x 3.0x 3.1x 2.8x 2.6x 2.3x 2.5x 2.4x 2.5x 2.4x 2.1x 2.1x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 58: 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 (a) Net Debt / E
Slide 59: Sonae Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Focus on operating efficiency Establish conditions for the sustainable development of businesses Promote the strengthening of Group competencies More efficient use of capital employed Strengthen the financial structure of the businesses Reduce net debt Imp
Slide 60: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt