Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — FY2000 Earnings Presentation
51 slides from Sonae Sgps Sa's earnings presentation, Mar 14, 2001
Slide 1: Sonae SGPS
sonae sgps MARCH 2001 www.sonae.pt
Slide 2: SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 85,45% 69,72% 51,19% 79,3% 100% 100% Sonae Sonae Sonae Sonae.com Sonae Sonae Indústria Distribuição Imobiliária Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Forestry Non Food Retail (development, commun
Slide 3: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Emerging Businesses Growth Businesses Mature Businesses Options for potential future development High growth businesses Mature businesses with with potential for strong profit
Slide 4: Sonae Distribuição (Retail) Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE DISTRIBUIÇÃO (RETAIL) SONAE also aims to foster the dynamics of growth within each business by stimulating the development of similarly balanced portfolios within each sector Horizon 3 Horizon 2 Horizon 1 B2C Portugal Food Retail São Paulo Specialise
Slide 5: 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 Wood Based Panels . Complete restructuring in France and Germany by end 2001 . Consolidate high growth / high profitability
Slide 6: Value Creation by Sonae 1987-2000
SONAE SGPS VALUE CREATION BY SONAE 1987 - 2000 Total Return for Shareholders Market Capitalization Sonae SGPS PSI 30 EUR 4,764 7.000 6.577 6.000 5.143 5.000 3.924 4.000 EUR 2,409 2.963 3.000 2.000 770 739 1.000 BASIS=100 657 0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 Average Annual Increase I
Slide 7: Prospective Capital Employed 1999-2004 by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 1999 - 2004 by Sector 2.400 6.000 ∆ CE Tourism 2% 2% • 20% c.a.g.r. in capital 100 ( + 22%) employed Telecoms 8% 19% 950 ( + 42%) Wood Based 27% 20% • Strong increase in exposure Panels 400 ( + 11%) to Shopping Cent
Slide 8: Prospective Capital Employed 1999-2004 by Region
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 1999 - 2004 by Region 2.400 6.000 ∆ CE Rest fo the World 1% 1% • Strong increase in exposure 18% 650 ( + 25%) to other EU countries Brazil 24% Other Europe 11% 27% 1.300 ( + 200%) • Decrease of the relative weight o
Slide 9: Consolidated Annual Results
SONAE SGPS CONSOLIDATED ANNUAL RESULTS Euro millions 1999 * 2000 ∆ Turnover 5,202.5 5,751.1 +11% Operating profit 134.7 203.5 +51% Net financial losses (97.3) (130.2) +34% • Strong improvement in profitability of “mature” Profit on ordinary activities 37.4 73.3 +96% businesses Extraordinary profits
Slide 10: Turnover: Contribution by Sector and Geography
SONAE SGPS TURNOVER – CONTRIBUTION BY SECTOR Euro millions AND BY GEOGRAPHY 5,751 5,202 Retail Brazil 63% 26% 3,075 2,585 Shopping 2,255 Centres 3% Rest Europe T elecoms 17% 9% Others Rest World 3% Portugal Wood Based 2% 55% 1996 1997 1998 * 1999 * 2000 Panels 22% * Pro-forma # 10
Slide 11: Operating Profit 2000 Contribution by Sector
SONAE SGPS OPERATING PROFIT 2000 Euro millions CONTRIBUTION BY SECTOR 40 (35) (8) (26) 204 Brazil 56 142 Portugal 34 Wood Based Retailing Shopping Telecoms Tourism Others TOTAL Panels Centres # 11
Slide 12: EBITDA 2000 Contribution by Sector
SONAE SGPS EBITDA 2000 – CONTRIBUTION BY SECTOR Euro millions 53 (2) (5) 546 57 Brazil 197 Portugal 105 140 Wood Based Retailing Shopping Telecoms Tourism Others TOTAL Panels Centres # 12
Slide 13: Profit Before Tax 2000 Contribution by Sector
SONAE SGPS PROFIT BEFORE TAX 2000 Euro millions CONTRIBUTION BY SECTOR 240 338 (53) 36 197 (12) (7) Wood Based Retailing Shopping Telecoms Tourism Others TOTAL Panels Centres * Capital gain IPO Sonae.com # 13
Slide 14: Consolidated Financial Structure 2000
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE - 2000 Net Borrowings Net Gearing Interest Cover (Euro million) 131% 4,1x 2,399 3,7x 2,369 2,150 93% 3,2x 83% 1999 1H 00 2000 1999 1H 00 2000 1999 1H 00 2000 Net Borrowings Net Debt / (Shareholders' EBITDA / Interest Payed Funds+Minority Interests) # 14
Slide 15: Sonae Indústria
& ) SONAE INDUSTRIA sonae Whaveleksnaate:
Slide 16: Indústria Sales 2000
SONAE INDÚSTRIA SALES 2000 By Product By Market Rest World Others 7% Plywood 5% Rest Europe Surfaced 11% Germany 11% 27% 19% Hard./Soft. 4% North America 6% South America France MDF 6% 21% 25% Particleboard OSB 26% UK 2% 7% Iberia 23% Leading world manufacturers of Wood Based Panels with annual sale
Slide 17: Indústria EBITDA Margin
SONAE INDÚSTRIA EBITDA MARGIN Iberia France Germany 15% 15% 17% 16% 17% 5% 5% 7% 2% 4% 4% 3% 1% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 -2% -5% 3Q 99 4Q 99 1Q 00 2Q 00 4Q 00 3Q 99 4Q 99 1Q 00 2Q 00 4Q 00 UK Canada Brazil 48% 40% 44% 36% 35% 38% 32% 25% 32% 15% 11% 9% 11% 7% 1% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 4Q
Slide 18: Indústria Restructuring & Expansion
SONAE INDÚSTRIA RESTRUCTURING & EXPANSION Closures in 2000 New Capacity 3Q 01 Spain - Linares 3 450.000 m (Particle Board) . France - Rochefort CDR - Lure 3 3Q 01 France 450.000 m (Particle Board) . Germany - Eiweiler (plywood) 3Q 01 Germany - Nettgau 3 550.000 m (Particle Board) . U.K. - EDB ( deco
Slide 19: Indústria Restructuring and Expansion
SONAE INDÚSTRIA RESTRUCTURING AND EXPANSION . Complete restructuring of production base in France and Germany by end 2001 Northern Europe . Expand capacity of high growth products: Flooring, OSB . Develop UK market position backed by new capacity brought on stream 1H 2000 . Consolidate market (30% o
Slide 20: Sonae Distribuição
sonae [elisisaneluirercre
Slide 21: Distribuição Current Position
SONAE DISTRIBUIÇÃO CURRENT POSITION Food Retail Portugal Food Retail Brazil Non Food Retail Portugal High medium-term growth Rapidly maturing market Fragmented market potential 6 6 6 Eur 2.119 *10 gross sales Eur 1.671 *10 gross sales Eur 348 *10 gross sales Nr 1 in Southern Brazil Nr 1 with 27% mar
Slide 22: Distribuição Business Portfolio - 1999
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1999 1999 Modalfa Continente Worten high Modelo medium Brazil Profitability (RGS + SC) Brazil (Paraná) Brazil Vobis (S. Paulo) Bonjour Max Mat low Sport Zone low defying high Market Share # 22
Slide 23: Distribuição Business Portfolio - 2001
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 2001 Worten 2001 high Modalfa Continente Modelo Brazil (RGS + SC) Brazil Brazil medium (S. Paulo) (Paraná) Profitability Bonjour Max Mat Vobis Sport Zone e-commerce low low defying high Market Share # 23
Slide 24: Distribuição Portugal - Portfolio
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 2000 Gross Sales (annualised): 2.470 M. Euro Final sq.m: 348.000 m2 er N stores: 197 Main formats Stores Sq.m (000) Gross sales 2000 (annualised)* Continente Hypermarkets 12 117 1.102 Modelo Mini-Hypermarkets** 56 128 898 Modelo Bonjour Supermarkets 22 17 50 W
Slide 25: Distribuição Brazil - Portfolio
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 2000 Gross Sales (annualised): 1.671 M. Euro (3,1b R$)** Final sqm: 402.000 m2 er N stores: 173 Gross sales 2000 Main formats Stores Sq.m (000) (annualised)* São Paulo BIG Hypermarkets 12 81 264 Cândia Supermarkets 1 2 20 Paraná BIG Hypermarkets 5 35 180 Mercado
Slide 26: Distribuição Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET Brazil Total Area (´000 km2) 8.547 Population (´000) 163.700 per capita GDP (Eur) 3.699 GDP (b Eur) 606 São Paulo Total Area (´000 km2) 249 2,9% Population (´000) 35.334 21,6% per capita GDP (Eur) 6.081 GDP (b Eur) 215 35,5% Paraná São Paulo South (SC + RGS
Slide 27: Continuous Investment in the Base Market
SONAE DISTRIBUIÇÃO CONTINUOUS INVESTMENT IN THE BASE MARKET Total sqm 59.000 750.000 672.000 19.000 402.000 Brazil 343.000 78.000 sqm [ + 12 % ] 250 M.Euro Portugal 329.000 348.000 1999 Chg. Portugal Chg. Brazil 2000 # 27
Slide 28: Distribuição EBITDA / EBIT Performance
SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro millions EBITDA 105 136 155 168 34 63 4Q 168 4Q 50 Portugal 58 3Q 37 34 49 Brazil 3Q 24 13 1H 1H 69 78 37 24 1998 1999 2000 1998 1999 2000 EBIT 44 135 109 100 29 49 20 4Q 4Q 34 Portugal 42 Brazil 33 3Q 11 23 14 3Q 42 44 1H 1H 2 10 4 1998 1999 2000 19
Slide 29: Distribuição Strategic Guidelines
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Context Strategic guidelines . Sector consolidation . Reinforce leadership in base market . Pro-active stance in concentration movements in Iberian Peninsula and Latin America . Consumer focus . Reinforce operational efficiency . Human resources development .
Slide 30: Partnership Agreement with GCT
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Partnership agreement with GCT Pro-active attitude towards concentration . Acquisition of 4 medium size units (“Modelo”) . 41 new franchised stores under the brand “Modelo Bonjour” . GCT joins Modelo Continente’s sourcing structure . Master franchise of one br
Slide 31: Distribuição Outlook 2001
SONAE DISTRIBUIÇÃO OUTLOOK 2001 . Food retail Portugal 2.200 million Euro (+ 6%) GROSS SALES 5.000 million EURO (annualised) . Food retail Brazil 2.300 million Euro (+ 25%) . Non-Food retail Portugal 500 million Euro (+ 25%) 2 SALES AREA 879.000 m . Up 20% from 2000 ± 9% of net sales EBITDA by end 2
Slide 32: Sonae Imobiliária
sonae Miaaleleiitclate
Slide 33: Imobiliária Business Portfolio
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe CascaiShopping1 (59)2 Centro Colombo1 (120)2 Shopping Penha (14%) Dortmund Multitheme CoimbraShopping (26.5)2 MaiaShopping (31)2 Shopping
Slide 34: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES 2 Number GLA ( ‘000 m ) Shopping Centres in operation Portugal * 10 470 Brazil 5 105 15 575 Shopping Centres under development Portugal 3 88 Spain 2 140 Greece 2 60 Brazil 1 105 ** 8 393 Shopping Centres under management Portugal 717 Spain 138 Brazil 105 960 * Incl
Slide 35: Imobiliária Sales Growth 00/99
SONAE IMOBILIÁRIA SALES GROWTH 00/99 29% 22% 21% 19% 17% 13% 8% 6% 5% Colombo NorteShopping GaiaShopping MaiaShopping CoimbraShopping GuimarãeShopping Viacatarina (**) Vasco da Gama (*) CascaiShopping (*) In April 99 the first phase of the expansion and renovation of CascaiShopping opened to the pub
Slide 36: Sonae.com
& ) SONAE.COM
Slide 37: .com Business Portfolio
SONAE .COM BUSINESS PORTFOLIO SONAE.COM (1) 45% 56.7% 100% 100% Mobile Fixed Data Multimédia Sonae.com and IT and Internet Ventures Optimus Novis Publico JVs & Alliances: Publico.pt Modelo.com (JV Sonae Retail) (25%) Clix (56.7%) BizDirect (Digital Marketplace JV) 20% 43.3% 43.3% (45%) We Do Consult
Slide 38: .com Optimus - Subscriber Growth
SONAE .COM OPTIMUS – SUBSCRIBER GROWTH Operator penetration (15 months after launch) Optimus subscribers, EOP (000’s) Optimus 8,20% 1410 Cosmote 5,90% Amena 3,40% 1153 Mobistar 2,20% 1002 918 Airtel 1,80% 817 Netcom 1,60% 683 564 Libertel 1,40% Omnitel 1,30% Bouygues 0,40% Orange 0,40% 0,00% 2,00% 4
Slide 39: .com Optimus - Market Share
SONAE .COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) Share of net additions (000’s) 3.456 3.754 4.219 4.671 4.931 5.194 +379 +298 +468 +451 +259 +263 40,0% 39,8% 38,4% 45,8% 45,3% 45,0% 44,9% 45% 44% 48,6% 44,3% 45,4% 22,2% 30,3% 23,7% 32,9% 35% 26,0% 28,3% 37,9% 37,2% 36,4% 35,8% 35
Slide 40: .com Optimus - ARPU Evolution
SONAE .COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 35,0 34,6 34,2 34,2 34,0 33,3 33,333,8 33,9 33,0 31,8 32,0 31,4 31,9 32,1 31,9 31,0 31,0 31,2 30,2 30,9 30,0 28,7 29,5 29,0 28,5 29,6 29,1 28,0 27,0 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Optim us Telecel TMN # 40
Slide 41: .com Novis - Initial Established Platform
SONAE .COM NOVIS – INITIAL ESTABLISHED PLATFORM SRD IP Global . Founded in 1994 it is one of the few integrated . Founded in October 1995 to provide dial-up and data, communications and IT service providers in dedicated Internet access Portugal . Second largest business ISP with 21.000 . Strong corp
Slide 42: .com Novis - Network Coverage
SONAE .COM NOVIS – NETWORK COVERAGE Network Coverage - Backbone, MAN and WLL Network Coverage (End of Period) 2000 2001 2002 Coverage of Business Sites 33% 61% 73% Covered Business Sites ('000s) 71 134 159 Coverage of Fixed Line Market (Residential + Business) 27% 51% 60% Fixed Lines in Covered Area
Slide 43: .com Novis - Eligible Market Evolution
SONAE .COM NOVIS – ELIGIBLE MARKET EVOLUTION Eligible market is expected to increase sharply over the next 6 months 100,0 % of Monthly Bill 35,4 Q3 2000 29,6 64,6 Q4 2000 Q1 2001 15,5 11,9 Q2 2001 7,6 Q3 2000 Pre Fixed Local Indirect Direct (Nat.+Int.) Selection to + Access Access Mobile Regional (m
Slide 44: .com Novis - Residential Market Penetration
SONAE .COM NOVIS – RESIDENTIAL MARKET PENETRATION New Fixed Telecom Operators Penetration (Market Research) By Operator Total 40 10 33,3 33,9 35 9 32,1 30,8 8 30 28,6 28,6 27,3 28,6 7 25 5,6 6 5,3 % 5 20 4,2 4,2 % 4 3,3 15 2,8 3 10 2 1,3 1 0,6 5 0 Jan.00 Fev.00 Mar.00 Abr.00 Mai.00 Jun.00 Jul.00 Ago
Slide 45: .com Novis (and Clix) Launch Progress
SONAE .COM NOVIS (and CLIX) LAUNCH PROGRESS Euro millions 23,7 Corporate and SME’s Revenues 3,5 Residential 4.989 and SoHo’s 4.425 4.006 4,8 CLIX 10,3 Corporate 7,2 30.6 30.9 30.12 6,1 15,4 and SME’s Residential and SoHo’s 186.804 137.933 Q1 Q2 Q3 Total 79.065 . Slow start in residential and SoHo’s,
Slide 46: .com Financial Highlights 2000
SONAE .COM FINANCIAL HIGHLIGHTS 2000 Euro millions 1999 2000 Total operating revenues 268 528 Optimus 248 462 Novis 20 39 Matrix * - 27 EBITDA 27 53 Optimus 30 92 Novis (2,6) (31) Matrix * 0 (3.2) Income (loss) before taxes (33) (80) Net income (loss) after minority 6 (43) interests CAPEX (excluding
Slide 47: Sonae Turismo
an TURISMO sonae hiuulals pale
Slide 48: Turismo Business Portfolio
SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotels Resort Leisure Travel Management Fitness & Development & Sports Hotel management Troia Resort Entertainment (Funcenter) Business travel Lagos properties Health Club Leisure travel (50%) Golf
Slide 49: Turismo Investment Projects
SONAE TURISMO INVESTMENT PROJECTS Tróia - Setúbal . Acquisition of Soltróia (approx. 950 ha. of land surrounding Torralta, including 480 ha. of natural reserve) . Tróia Resort: Master and Detail Plan . Casino Project: Master Plan and Conceptual Design Lagos - Algarve . Acquisition of Palmares (golf
Slide 50: Sonae Capital
, ! SONAE CAPITAL sonae |(@=) ®)he=)
Slide 51: Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Spred Spinveste Choice Car Invicta Capitais Privados Joint -Ventures Construction, Car Hire Transport & Risk capital Real Estate & Retailing & Services & Engineering Barbosa & Almeida (49%) Contacto (100%) Star Transportes Finlog (50%) Selfrio (35%) Con