Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — FY2003 Earnings Presentation
40 slides from Sonae Sgps Sa's earnings presentation, 2004
Slide 1: Announcement Sonae SGPS 2003
qn —i ANNOUNC EMENT , SONAE SGPS s 2003
Slide 2: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED ACCOUNTS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 3: Consolidated Key Indicators
CONSOLIDATED KEY INDICATORS Turnover Operational Cash-Flow Net Profits before (EBITDA) Minority Interests 265 6,579 * 6,276 6,260 655 * 649 637 2002 2003 2002 2003 -49 * At constant exchange rates * At constant exchange rates 2002 2003 Total Assets Net Debt Net Investment 7,968 7,675 3,294 2,575 675
Slide 4: Consolidated Key Indicators: countries and employees
CONSOLIDATED KEY INDICATORS Sonae operates in 11 countries and employs 58,500 people North America Europe Canada Portugal Spain U.K. France Germany Greece Italy South America Africa Brazil South Africa Gabon -3-
Slide 5: Highlights
HIGHLIGHTS Stronger management capabilities and increased business autonomy Improvement in operating efficiency Debt reduction and strengthening of equity and long term loans, through: Cash-flow generation Working capital improvements Divestment from non strategic assets Refinancing and extension of
Slide 6: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED ACCOUNTS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 7: The Business Portfolio
THE BUSINESS PORTFOLIO SONAE SGPS 95.87% 100% 75.68% 67.04% 82.79% 100% Sonae Modelo Sonaecom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Retail Shopping Centres Telecommunications Tourism Panels Services Packaging Pulp&Paper S. I. PROPERTY S. I. DEVELOP. CHOICE CAR IMOCAPITAL *
Slide 8: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED ACCOUNTS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 9: Sonae Indústria Highlights
SONAE INDÚSTRIA HIGHLIGHTS A difficult year, especially in Central Europe Selling prices at the lowest levels for a number of years but some recovery noted in the last quarter Implementation of a new corporate governance model Plywood business de-consolidated Satisfactory profitability maintained at
Slide 10: Sonae Indústria Key Indicators
SONAE INDÚSTRIA KEY INDICATORS Turnover Operational Cash-Flow (EBITDA) 173 1,480 1,481 * 150 155 * 1,441 2002 2003 2002 2003 * At constant exchange rates * At constant exchange rates Net Profits after Total Net Debt Minority Interests (including shareholders’ loans) loans) 1,190 2002 2003 972 -82 -7
Slide 11: SPDF Highlights
SPDF HIGHLIGHTS Increased shareholding in Portucel due to the end of the partnership with Suzano Continued involvement in the reprivatisation process of Portucel Share capital increase in exchange for assets was prevented Agreement established with three competitors interested in acquiring 30% - 10
Slide 12: Modelo Continente Highlights
MODELO CONTINENTE HIGHLIGHTS Portugal Food Retail (Hyper and Supermarkets) EBITDA levels maintained (9.9% of Net Sales), despite stagnation of sales due to reduced consumer spending and a freeze on new licences for stores Non-food Retail Strong sales growth (+13%1) coupled with continued high levels
Slide 13: Modelo Continente Key Indicators
MODELO CONTINENTE KEY INDICATORS Profits on Ordinary Gross Sales Operational Cash-Flow Activities (% net sales) 4,319 * 8.4% 8.3% 4,069 3,984 107 104 2002 2003 2002 2003 2002 2003 * At constant exchange rates Net Profits after Net Debt / EBITDA Minority Interests 100 2.3 2.1 75 2002 2003 2002 2003 V
Slide 14: Sonae Imobiliária Highlights
SONAE IMOBILIÁRIA HIGHLIGHTS Set up of “Sonae Imobiliária European Retail Real Estate Asset Holdings B.V.” – SIERRA Fund – with a share capital of 1,080 M.€, of which 540 M.€ are owned by renowned international institutional investors Portfolio strengthened by the opening of new centres in Portugal
Slide 15: Sonae Imobiliária Key Indicators
SONAE IMOBILIÁRIA KEY INDICATORS Operational Cash-Flow Net Profits after (EBITDA) Minority Interests 209 96 98 144 2002 2003 2002 2003 NAV per share Value of properties attributable (in euro) to Sonae Imobiliária 29.2 1,582 1,473 27.7 2002 2003 2002 2003 Values in M.€ - 14 -
Slide 16: Sonaecom Highlights
SONAECOM HIGHLIGHTS By the end of 2003 Sonaecom had 2.7 million customers, generated 5.9 billion minutes of voice, data and Internet traffic Continued focus on cost reduction and process improvement Significant improvement in key financial indicators: 6% growth in Turnover 3% reduction in Operating
Slide 17: Sonaecom Key Indicators
SONAECOM KEY INDICATORS Operating profitability was the main focus in 2003, and was obtained through top line growth, by cost reductions and by improvements in operating processes Turnover Operational Cash-Flow 838 (EBITDA) 789 146 72 2002 2003 2002 2003 Gross Investment Free Cash-Flow 35 127 123 20
Slide 18: Sonae Capital Highlights
SONAE CAPITAL HIGHLIGHTS Tourism The Tróia Development Favourable decision on the environmental impact of the Marina and ferry boat terminal, and detailed planning approval given by the local authorities, now awaiting government ratification Partnership agreement signed with Amorim Turismo to acquir
Slide 19: Sonae Capital Highlights
SONAE CAPITAL HIGHLIGHTS Agreement to launch a Public Tender Offer for ba Vidro Improved profitability in Construction, Services and Logistics Strenghtened partnership with Endesa, in the co-generation business and the sale of energy Broadening of interests in insurance broking - partnerships in Bra
Slide 20: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED ACCOUNTS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 21: Consolidated Profit and Loss
CONSOLIDATED PROFIT AND LOSS 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) Associated Companies 8.4 7.1 Profit/(Loss) before Taxation 313.6 (53
Slide 22: Turnover
TURNOVER Increase of 4.8% at constant exchange rates 6,579 * 6,276 6,260 Wood Based 1,455 Panels 1,464 3,740 Retail 3,533 269 Shopping Centres 237 812 Telecom. 762 303 Sonae Capital and Holding 280 2002 2003 * At constant exchange rates Values in M.€ 31 December 2002 - 21 -
Slide 23: Operational Cash-Flow (EBITDA)
OPERATIONAL CASH-FLOW (EBITDA) Growth of 1% at constant exchange rates 655 * 649 637 Wood Based 155 Panels 174 Retail 301 297 Shopping 72 Centres 82 Telecom. 132 92 -5 Sonae Capital and Holding 4 2002 2003 * At constant exchange rates Values in M.€ 31 December 2002 - 22 -
Slide 24: Net Profit
NET PROFIT Net Profit before Minority Interests of 265 M.€ Net Profit before Minority Net Profit after Minority Interests Interests 265 115 -49 -56 2002 2003 2002 2003 Values in M.€ - 23 -
Slide 25: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONTAS CONSOLIDADAS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 26: Consolidated Balance Sheet December 2003
CONSOLIDATED BALANCE SHEET 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 749.7 854.1 Interest Bearing Deb
Slide 27: Total Assets
TOTAL ASSETS 7,968 7,675 Shopping Centres 16% Retail Telecom. 28% 18% 836 756 Wood Based Panels Sonae Capital 1,396 27% 1,332 and Holding 11% 2002 2003 Goodwill Shareholders’ Funds and Minority Interests Values in M.€ - 26 -
Slide 28: Consolidated Gross Investment
CONSOLIDATED GROSS INVESTMENT Consolidated Gross Investment of 666 M.€ 744 Wood Based 61 666 Panels 106 128 Retail 121 280 Shopping Centres 304 129 Telecom. 152 68 Sonae Capital and Holding 61 2002 2003 Values in M.€ 31 December 2002 - 27 -
Slide 29: Net Debt
NET DEBT Reduction of Net Debt by 720 M.€. to 2,574 M.€ 3,294 2,574 Shopping Centres Telecom. 10% 16% Retail 23% Sonae Capital and Holding 25% Wood Based Panels 2002 2003 26% Values in M.€ - 28 -
Slide 30: Consolidated Financial Structure
CONSOLIDATED FINANCIAL STRUCTURE The ratio of Net Debt to EBITDA fell to 4x, the lowest level for the last 6 years 6,5 x 6,0 x 5.8 x 5,5 x 5.1 x 5,0 x 4,5 x 4.4 x 4,0 x 4.0 x 3,5 x 3,0 x 2000 2001 2002 2003 - 29 -
Slide 31: Share Price Performance
SHARE PRICE PERFORMANCE During 2003, Sonae SGPS, SA shares rose in value by 65% compared to a rise of 16% in the PSI 20 Index. Since the beginning of 2004, Sonae SGPS, SA shares have risen in value by 47%. 270 8 Mar. ¾ Average daily trading volume of 3.8 million shares 1.06 Sonae SGPS 250 230 210 Ba
Slide 32: Agenda
AGENDA YEAR 2003 Consolidated Key Indicators Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONTAS CONSOLIDADAS FINANCIAL STRUCTURE OUTLOOK FOR 2004
Slide 33: Sonae Indústria Outlook for 2004
SONAE INDÚSTRIA OUTLOOK FOR 2004 An autonomous organisation focused on operations Improvement in operating performance Sales and Marketing - emphasis on price and margins rather than market share Manufacturing and supply chain - continuous cost reduction programme and internal sharing of best practi
Slide 34: Modelo Continente Outlook for 2004
MODELO CONTINENTE OUTLOOK FOR 2004 Portugal Continue to improve operating efficiency; Re-launch expansion plans following the introduction of the new law on commercial licensing. Brazil Consolidate position of leadership in the Southern region of the country; Follow a conservative investment policy.
Slide 35: Sonae Imobiliária Outlook for 2004
SONAE IMOBILIÁRIA OUTLOOK FOR 2004 Continue to focus on the shopping and leisure centre sector as developer, owner and manager. Activity will remain centred on markets where the company already operates: Portugal, Spain, Greece, Germany, Italy and Brazil (maintaining a self imposed limit on involvem
Slide 36: Sonaecom Outlook for 2004
SONAECOM OUTLOOK FOR 2004 2004 will be another challenging year but starting from a better platform than in 2002 and 2003 Confident that, with the productivity and service quality levels achieved in 2003, will be able to: Take advantage of the economic recovery Minimise the effect of continued delay
Slide 37: Sonae Capital Outlook for 2004
SONAE CAPITAL OUTLOOK FOR 2004 Tourism Tróia development Work on UNOP1 to begin and detailed planning for UNOP2 to be approved Consolidate the policy of partnerships for the sustainable development of Tróia Resort Travel sector – Expansion and improvement of the store network as part of the re- laun
Slide 38: Sonae SGPS Outlook for 2004: Corporate Governance
SONAE SGPS OUTLOOK FOR 2004 Developing the corporate governance model Enlargement of the Board of Directors Board of Directors Chairman: Belmiro de Azevedo Vice-Presidents: Álvaro Portela Non Executives: Alvaro Cuervo Ângelo Paupério Luiz Filipe Lampreia Nuno Jordão Michel Bon Paulo Azevedo Nuno Aze
Slide 39: Sonae SGPS Outlook for 2004: Dividend Distribution
SONAE SGPS OUTLOOK FOR 2004 Dividend distribution Total amount to be distributed (around 28 millions euro) Dividend per share (1.5 cents) Dividend Yield (3.13%) - 38 -
Slide 40: www.sonae.pt
This presentation is available at the official Sonae SGPS website www.sonae.pt