Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2007)
52 slides from Sonae Sgps Sa's investor presentation, September 2007
Slide 1: Sonae SGPS September 2007
sonae sgps SEPTEMBER 2007 * * Data as of 30 June 2007 under International Financial Reporting Standards (IFRS)
Slide 2: The history of Sonae over the last 40 years
SONAE SGPS THE HISTORY OF SONAE OVER THE LAST 40 YEARS ‘00 ‘90 International growth. Develop selected Decrease diversity of strategic portfolio Turnover businesses. CAGR* = 14% Financial control of non strategic Parque D. Pedro (Brazil) and businesses Plaza Mayor (Spain) – 1st ‘80 two fully develope
Slide 3: Track record of flexibility, entrepreneurship, long term value creation
SONAE SGPS TRACK RECORD OF... Long term Flexibility Entrepreneurship value creation Acquisitions of Tafisa and Glunz; Joint-venture approach: Intrinsic to the Sonae Culture and sponsored by the Group Promodés; Chairman; Expansion to Brazil (Retail and Grosvenor; Shopping Centres); Fran
Slide 4: Track record: value creation for the shareholder
SONAE SGPS TRACK RECORD OF... ... Value creation for the Shareholder 43% Over 1 year 78% • No capital calls since 2000 Total Shareholder Return 21% Over 5 years 43% 6% • Spin off of Sonae Indústria (2005) Over 10 years and Sonae Capital (2007/2008) 9% 12% Over 15 years • Consistently delivering abov
Slide 5: Group - current position
SONAE SGPS SONAE GROUP - CURRENT POSITION Sonae SGPS manages a portfolio of diversified businesses by setting strategic guidelines and objectives together with management teams, monitoring their performance, fostering synergies between them and identifying new business opportunities; This is done by
Slide 6: Business portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 100% 50% 50.1% 100% Sonae Sonae Sonae Distribuição Sonaecom Sierra Capital Food and Non Food Shopping Centres Telecommunications Services Retail Insurance Brokerage and SONAE SIERRA BRAZIL Real Estate Devlopment SIERRA DEVELOPMENT Engineering, Services & SIER
Slide 7: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 8: Distribuição guidelines
SONAE DISTRIBUIÇÃO GUIDELINES Sonae Distribuição 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 propos
Slide 9: Distribuição strategic guidelines
SONAE DISTRIBUIÇÃO 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 broadening the current businesses to new geographical areas
Slide 10: Purchase of Carrefour stores in Portugal
SONAE DISTRIBUIÇÃO PURCHASE OF CARREFOUR STORES IN PORTUGAL In July 2007, Sonae Distribuição acquired* Carrefour’s hypermarket operations in Portugal. The deal will enable Sonae Distribuição to strengthen its leadership in the Portuguese food retail market, by: • immediately increasing installed sal
Slide 11: Distribuição outlook
SONAE DISTRIBUIÇÃO OUTLOOK growth, both organic and through acquisition opportunities which arise in the market develop and fine-tune recently launched concepts Consolidate launch new concepts in Portugal, leveraging on all synergies leadership available a best practices approach encompassin
Slide 12: Distribuição business portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE Food Retail Non-Food Retail Computers Hypermarkets Consumer Elect. Mobile communic. Hypermarkets Sports Goods Kidswear Apparel DIY Pharmacies Supermarkets Travel Agencies Garden # 11
Slide 13: Distribuição key facts
SONAE DISTRIBUIÇÃO KEY FACTS No.1 retailer 3.1 Bn€ in Portugal 2006 turnover (with food and non food retail) (205,000 articles in portfolio) ~25,000 ~565,000 employees sqm sales area (in 517 stores) 3,500 2,400,000 suppliers sales receipts/week # 12
Slide 14: Distribuição consolidated figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Turnover (M. €) EBITDA (M.€) 3,091 2,621 2,745 2,576 252 254 2,474 242 233 235 1,495 114 1,360 85 2002 2003 2004 2005 2006 1H07 2002 2003 2004 2005 2006 1H07 POC IFRS POC IFRS Sales Area (‘000 sqm) Number of Stores 517 480 543 565 495 335 427 433 282 415 258 2
Slide 15: Sonae Sierra
sonae sierra
Slide 16: Sierra guidelines
SONAE SIERRA 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 Cent
Slide 17: Sierra shopping centres
SONAE SIERRA SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 46 Shopping Centres, equal to 1.8 million m2 of GLA 20 in Portugal (774 thousand m2) 1 in Greece (46 thousand m2) 11 in Spain (478 thousand m2) 2 in Germany (96 thousand m2) 9 in Brazil (321 thousand m2) 1 in Romania (12 thous
Slide 18: Sierra Portugal - shopping centres
SONAE SIERRA PORTUGAL - Shopping Centres in operation and under development 1 AlgarveShopping 13 MadeiraShopping Apr.01 GLA: 42,524 m2 Mar.01 GLA: 26,344 m2 Sonae Sierra (100%)1 Sonae Sierra (50%)1/ Estevão Neves 20 Arrábida Shopping MaiaShopping 2 14 Oct.96 GLA: 56, 703 m2 Nov.97 GLA: 28,949 m2 Son
Slide 19: Sierra Spain - shopping centres
SONAE SIERRA SPAIN - Shopping Centres in operation and under development 1 Avenida M40 Madrid Apr.04 GLA: 48,295 m2 Sonae Sierra (100%) 2 Dos Mares Murcia Mar 04 GLA: 24,807m2 Sonae Sierra (100%)1 12 3 Gran Casa Zaragoza Mar.97 GLA: 77,344 m2 Sonae Sierra (50%)1 / ING Real Estate 4 La Farga Barcelon
Slide 20: Sierra Other Europe - Italy and Greece
SONAE SIERRA OTHER EUROPE - Shopping Centres in operation and under development ITALY GREECE Mediterranean Cosmos Thessalonica 1 Oct.05 GLA: 46,000 m2 Sonae Sierra / Acropole Charagionis / Lamda Development 4 3 5 Under development: 2 Galatsi Olympic Hall Athens Autumn 2008 GLA: 38,695 m2 Sierra Deve
Slide 21: Sierra Other Europe - Germany and Romania
SONAE SIERRA OTHER EUROPE - Shopping Centres in operation and under development GERMANY ROMANIA Münster Arkaden Münster 1 2005 GLA: 26,200 m2 Sonae Sierra (100%)1 2 Alexa Berlin Sep. 07 GLA: 56,200 m2 Sierra Developments (50%) / Foncière Euris Under development: 3 Weiterstadt Frankfurt Autumn 2008 G
Slide 22: Sierra Brazil - shopping centres
SONAE SIERRA BRAZIL - Shopping Centres in operation and under development 1 Boavista Shopping Sto. Amaro, S. Paulo Apr. 04 GLA: 24,000 m2 Sonae Sierra Brasil (100%) 2 Franca Shopping Franca, S. Paulo Oct.93/Oct.03 expansion GLA: 18,000 m2 Sonae Sierra Brasil / Local Partners Parque D.Pedro Campinas,
Slide 23: Sierra consolidated figures
SONAE SIERRA CONSOLIDATED FIGURES Million euro Net Profit Net Operating Margin 150 271 249 126 219 108 95,5 98 164 149 71 127 140 72 2002 2003 2004 2005 2006 1H07 2002 2003 2004 2005 2006 1H07 Market Value of Investments NAV per Share (€) 49.06 5,430 45.82 4,728 4,096 38.90 3,341 3,213 32.60 2,868 2
Slide 24: Sierra operational indicators
SONAE SIERRA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 2,025 2,001 1,987 Brazil 16% 1,839 Greece 3% Portugal 1,564 45% 1,517 Italy 7% 2002 2003 2004 2005 2006 1H07 Spain Sales and Visits 29% 4,104 3,888 3,212 2,865 382 410 424 402 2003 2004 200
Slide 25: Sonae com
sonae com
Slide 26: Com guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 3 main business divisions: Telecommunications, Media and Sofware & Systems Integration Sonaecom’s ambition is to be the best Portuguese communication services provider and the company of choice for except
Slide 27: Com business portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% 99% 100% Telco Telco Media SSI (1) Mobile Fixed (1) Software and Systems Information = Size of Free Float # 26
Slide 28: Com consolidated figures
SONAE COM CONSOLIDATED FIGURES Million euro Turnover EBITDA 201 880 843 184 838 836 789 157 146 413 73 72 396* 78* 2002 2003 2004 2005 2006 1H07 2002 2003 2004 2005 2006 1H07 Free Cash-Flow CAPEX 62 35 24** (55) 13 182** 141 148** 2002 2003 2004 2005 2006 1H07 127 123 122 (28) * (37)** 65** 2002 200
Slide 29: Optimus - growth initiatives
SONAE COM OPTIMUS – GROWTH INITIATIVES Optimus, launched in 1998, has consolidated its market position in Portugal, with 2.7 million subscribers and a market share of 20%, at the end of 2006. Market share growth Traditional mobile voice Mobile internet access Increase of revenue per client Mob
Slide 30: Sonaecom Fixed - growth initiatives
SONAE COM 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
Slide 31: Público - operational performance under pressure
SONAE COM PÚBLICO – OPERACIONAL PERFORMANCE UNDER PRESURE Público is the 3rd Portuguese daily paper in terms of paid circulation, with a 12.5% market share at March 2007, and a 14.0% market share in advertising, at July 2007. MARKET SHARE PAID CIRCULATION MARKET SHARE ADVERTISING 1Q07 January – July
Slide 32: S&SI - focus on international growth
SONAE COM 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 focu
Slide 33: Sonae Capital
sonae capital
Slide 34: Capital guidelines
SONAE CAPITAL 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
Slide 35: Capital business portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Engineering, Services Tourism Insurance Brokerage and Seed and Risk Capital (Resorts & Hotels) and Risk Management Real Estate # 34
Slide 36: Capital consolidated figures
SONAE CAPITAL CONSOLIDATED FIGURES Million euro Turnover 576 560 Insurance 526 Brokerage and 479 461 662 450 Risk Management 412 626 2% 553 229 Seed and Risk Capital 232* 49% 2000 2001 2002 2003 2004 2005 2006 1H07 Aggregated Figures Consolidated Figures IFRS POC Engineering, Services and Real Estat
Slide 37: Sonae SGPS
sonae sgps
Slide 38: 1H07 growth initiatives
SONAE SGPS 1H07 GROWTH INITIATIVES Sonae Sierra announced the acquisition of an additional asset in Greece (Larissa) and acquired its first asset in Eastern Europe, in Romania (Ramnicu Valcea). International Growth Sonae Capital acquired 14% of Cooper Gay (Holding) Limited (28% voting rights). Sonae
Slide 39: Reorganization of the corporate centre
SONAE SGPS REORGANIZATION OF THE CORPORATE CENTRE Under the new structure, the tasks of the corporate centre comprise: Promote and support growth and internationalization initiatives; Proactive management of the Group’s institutional relations; Focus on institutional marketing, managing the So
Slide 40: Consolidated profit and loss account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro 1H07 1H06 ∆% Turnover 2,137.2 1,999.1 + 6.9 Value Created on Investment Properties 102.8 71.4 + 44.0 Other Operational Income 211.7 186.8 + 13.3 Operational Costs (2,116.4) (1,977.3) + 7.0 Operational Cash-Flow (EBITDA)(a) 333.9 277.5 + 20
Slide 41: Turnover sector breakdown
SONAE SGPS TURNOVER Million euro SECTOR BREAKDOWN 1,495 Retail 6,276 6,260 6,464 6,392 1,366 Shopping 80 Centres 71 4,384 413 Telecom. 410 2,137 228 Sonae Capital 4,117* 232 1,999 Holding and 8 Others 5 2002 2003 2004 2005 2006 1H07 (81) Eliminations POC IFRS (85) 1H06 * Excluding the contributions
Slide 42: Operational cash flow (EBITDA) sector breakdown
SONAE SGPS OPERATIONAL CASH FLOW (EBITDA) Million euro SECTOR BREAKDOWN 116 Retail 938 948 85 Shopping 131 Centres 649 106 637 599 78 Telecom. 84 334 14 Sonae Capital 533* 6 278 (3) Holding and Others (3) 2002 2003 2004 2005 2006 1H07 (2) POC Eliminations IFRS 1H06 * Excluding the contributions of S
Slide 43: Profit for the period sector breakdown
SONAE SGPS PROFIT FOR THE PERIOD Million euro SECTOR BREAKDOWN 82* 81 11 (5) 141 (76)* 49 Retail Shopping Telecom. Sonae Capital Holding and Eliminations 1H07 Centres Others * Includes dividends paid by Retail and Shopping Centres businesses. # 42
Slide 44: Consolidated balance sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 1H07 FY06 Investment Properties 1,823.0 1,520.2 Tangible and Intangible Assets 2,395.1 2,396.1 Goodwill 278.3 250.8 Other Non-Current Assets 369.7 411.5 Stocks 533.8 481.2 Trade Debtors and Other Current Assets 566.7 565.3 Investments 37.0 33.3 Cash
Slide 45: Total assets sector breakdown
SONAE SGPS TOTAL ASSETS Million euro 8,598 2,389 7,968 7,675 Retail 2,370 6,712 6,307 6,321 Shopping 2,060 Centres 1,769 1,202 Telecom. 1,229 803 Sonae Capital 763 Holding and 361 2002 2003 2004 2005 2006 1H07 Others 303 POC IFRS (103) Eliminations (113) 31 December 2006 # 44
Slide 46: Net debt - June 2007
SONAE SGPS NET DEBT – 30 June 2007 Million euro SECTOR BREAKDOWN 586 Retail 2,822 377 Shopping 722 2,380 Centres 533 2,063 284 Telecom. 337 1,620 103 1,913 * Sonae Capital 101 Holding and 613 Others 621 2004 2005 2006 1H07 72 Eliminations 94 31 December 2006 * Excluding the contributions of Sonae In
Slide 47: Investment as at June 2007
SONAE SGPS INVESTMENT AS AT 30 JUNE 2007 Million euro SECTOR BREAKDOWN 181 45 223 (34)** (42)* 73 Retail Portugal Shopping Centres Telecom. Sonae Capital Holding and Others 30 June 07 *Impacted by the disposal of PT shares (112 M.€). **Divestment of Agloma, Somit and Cuellar sawmills and Imoplamac.
Slide 48: Consolidated financial structure - net debt
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Million euro NET DEBT Million euro NET NETDEBT DEBT Million euro 4,500 NET DEBT 3,899 Million euro 4,000 3,337 3,500 3,214 3,330 3,071 3,111 3,060 3,074 3,000 2,822 2,574 2,500 2,380 2,176 2,233 2,064 2,063 1,913 2,000 1,684 1,620 1,500 1,000 1Q01 2Q01 3Q0
Slide 49: Consolidated financial structure - net gearing
SONAE CONSOLIDATED FINANCIAL STRUCTURE NET GEARING (Net Debt/Shareholders’ Funds + Minority Interests) 300% 282% After Goodwill After Goodwill elimination against 250% elimination against reserves reserves 209% 200% 172% 171% 193% 149% 155% 152% 145% 150% 132% 133% 121% 127% 145% 110% Before Goodwil
Slide 50: Financial structure - stand alone basis
SONAE SGPS FINANCIAL STRUCTURE – STAND ALONE BASIS 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: Sonae SGPS Net Debt: 587
Slide 51: Group strategic priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Prepare and execute spin off of Sonae Capital. Implement new corporate centre structure. Focus on accelerating growth in three core activities: - challenge and support ambitious organic growth strategies, driven by extending current businesses frontiers an
Slide 52: www.sonae.pt
SONAE SGPS This presentation is available on the official Sonae SGPS website www.sonae.pt