Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (March 2006)
47 slides from Sonae Sgps Sa's investor presentation, March 2006
Slide 1: Sonae SGPS March 2006
sonae sgps MARCH 2006 * * Data as of 31 December 2005 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 Manager of portfolio of businesses with international dimension. Focused ‘90 management on Focus and main core Turnover development of core businesses CAGR* = 17% businesses. Financial control of non strategic Parque D. Pedro (Brazil) and bu
Slide 3: Sonae Group - Current Position
SONAE SGPS SONAE GROUP - CURRENT POSITION 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; This is done by developing a balanced portfoli
Slide 4: Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 98.06% (1) 50% 62.56% 100% Modelo Sonae Sonae Sonaecom Continente Sierra Capital Food and Non Food Shopping Centres Telecommunications Services Retail Refrigeration & Air Cond. SIERRA DEVELOPMENT SONAE SIERRA BRASIL Const., Eng. & Res. Dev. SIERRA MANAGEMENT
Slide 5: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 6: 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. Market leader in all operating markets, through market-share leadership, best practices and customer focus. VISION Expand its business front
Slide 7: Distribuição Guidelines and Outlook
SONAE DISTRIBUIÇÃO GUIDELINES Market leadership: - Maximize benefit of existing store network - Significant expansion plan - Reinforcement of “value-for-money” positioning on food formats - Development of specialist profile for non food formats Best practices: - Increase operational efficiency - Inf
Slide 8: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE Food Retail Non-Food Retail Hypermarkets Consumer Elect. Apparel Hypermarkets Sports Goods Computers DIY Supermarkets Kidswear #7
Slide 9: Market Trends - Portugal
SONAE DISTRIBUIÇÃO MARKET TRENDS - PORTUGAL GDP growth rate(1) Consumers confidence index 3,9 2000 2005 Euro zone -12 1,3 0,7 0,3 2000 -1,1 2005 -41 Portugal (1) percentage change on previous year Sqm’s change (UCDR’s)(2) (‘000) 332 Dec 2005 sales area : 1,557 Madeira 102 86 92 92 49 43 2000 2005 (3
Slide 10: Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Gross Sales (M. €) EBITDA Margin (% Net sales) 4,506 4,308 4,136 4,069 3,984 4,159 8.8% 8.6% 8.4% 8.4% 8.3% 7.8% 3,115 2,905 2,957 2,798 2,657 2,467 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005* Portugal Brazil Sales Area (‘000 sqm) Number of St
Slide 11: Sonae Sierra
sonae sierra
Slide 12: 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 13: Sierra Shopping Centres
SONAE SIERRA SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 38 Shopping Centres, equal to 1.6 million m2 of GLA 16 in Portugal (695 thousand m2) 11 in Spain (478 thousand m2) 8 in Brazil (293 thousand m2) 2 in Italy (73 thousand m2) 1 in Greece (46 thousand m2) … manages… a total of 2.
Slide 14: Sierra Portugal - Shopping Centres
SONAE SIERRA PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov.03) – GLA: 18,545 m2 MaiaShopping (Nov.97) – GLA: 28,949 m2 Sonae Sierra (100%) Sonae Sierra (100%) Lima Retail Park (2006) – GLA: 10,900 m2 NorteShopping (Oct.98) – GLA: 72,050 m2 Sonae Sierra (50%) / Mil
Slide 15: Sierra Spain - Shopping Centres
SONAE SIERRA SPAIN - Shopping Centres in operation and under development Parque Principado (Apr.01) Valle Real (Nov.94) Oviedo - GLA: 74,780 m2 Santander – GLA: 47,830 m2 Sonae Sierra (25%) / Lar-Grosvenor 1 Sonae Sierra (50%)1 / ING Real Estate Group and Whitehall Fund (50%) Zubiarte (Nov.04) Bilba
Slide 16: Sierra Other Europe - Shopping Centres
SONAE SIERRA OTHER EUROPE - Shopping Centres in operation and under development Mediterranean Cosmos (Oct.05) Caselle (Spring 2009) Thessalonica - GLA: 46,560 m 2 Torino - GLA: 76,000 m2 Sierra Charagionis (39.9%) / Sonae Sierra (100%)1 Lamda Development (60.1%) Aegean Park (Spring 2009) Biella (Spr
Slide 17: Sierra Brazil - Shopping Centres
SONAE SIERRA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct.97) Brasília – GLA: 31,216 m2 Sierra Enplanta (5.2%)/ Others (94.8%) Shopping Penha (Oct.93/Oct.04 - expansion) S. Paulo – GLA: 23,333 m2 Sierra Enplanta (64.7%) / Others (35.3%) Shopping Franca (Oct.93) Fran
Slide 18: Sierra Consolidated Figures
SONAE SIERRA CONSOLIDATED FIGURES Million euro Net Profit EBITDA 249 126 219 108 98 95,5 149 74 121 127 55 63 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Market Value of Investments NAV per Share (€) 4,096 38.90 3,341 2,868 32.60 2,561 2,498 29.16 27.67 1,944 1,907 24.90 1,589 1,481
Slide 19: Sierra Operational Indicators
SONAE SIERRA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 2,025 Brazil 14% 1,839 Greece 2% Portugal 1,564 44% 1,517 Italy 10% 2002 2003 2004 2005 Spain Sales and Visits 29% 3,888 3,212 2,865 382 410 424 2003 2004 2005 Sales (million euro) Visits (
Slide 20: Sonaecom
sonae com
Slide 21: Sonaecom Guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 3 main business divisions: Telecommunications (Optimus, Novis and Clix), Media (Publico) and Sofware & Systems Integration (Wedo, Enabler, Bizdirect and Mainroad) Sonaecom’s ambition is to be the best Por
Slide 22: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% Software & Telco Media Systems Integration (1) Publico 69.24% 100% 100% We Do Consulting (100%) – Telecom Systems & Software Developer Enabler (64%) – Retail Systems Integrator Mobile Fixed Internet & Software Developer Mainroad (57%) – Provider of Cor
Slide 23: Sonaecom Consolidated Figures
SONAE COM CONSOLIDATED FIGURES Million euro Turnover EBITDA 201 880 838 843 789 157 733 146 72 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 (55) Free Cash-Flow CAPEX 62 197 35 12 141 2001 2002 2003 2004 2005 127 123 122 (55) 2001 2002 2003 2004 2005 # 22 (268)
Slide 24: Sonaecom Operational Indicators
SONAE COM OPERATIONAL INDICATORS Sonaecom’s total customer base increased significantly during 2005, growing by 6% to 2.6 million at the end of 2005 (2.4 million last year) and accelerated the development of technical supporting platforms; in Mobile - Extension of the UMTS Network covering 50% of th
Slide 25: Optimus - Focus on Improving Growth
SONAE COM OPTIMUS – FOCUS ON IMPROVING GROWTH Optimus entered in the market 7 years ago, 10 years later than TMN and 6 years later than Vodafone. It is one of the most successful third operators in Europe with a market share of around 20%. Optimus’ strategy growth along three lines: - Increase of re
Slide 26: Sonaecom Fixed - Focus on Improving Profitability
SONAE COM SONAECOM FIXED – FOCUS ON IMPROVING PROFITABILITY Novis leads altnets in its key market segments: SME and SoHo and is the second largest provider of wholesale traffic. Novis core segments are SoHos and SMEs, with a clear focus on providing direct access solutions. Aggressive promotion of d
Slide 27: Público - Focus on Top Line Growth
SONAE COM PÚBLICO – FOCUS ON TOP LINE GROWTH Público is the 4th Portuguese daily paper in terms of paid circulation. Pioneer in the development of “Associated Products”. Strategic content provider: protection against increased sector concentration. Tough market experience during 2005: - Tabloids tak
Slide 28: S&SI - Focus on International Growth
SONAE COM S&SI – FOCUS ON INTERNATIONAL GROWTH The Software & Systems Integration (S&SI) division brings together leading specialists in telco and retail systems integration, namely WeDo and Enabler. S&SI is the sixth largest IT/IS group in Portugal. International presence through Enabler (Retail IS
Slide 29: Sonae Capital
sonae capital
Slide 30: Sonae Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital generates options and future growth in construction and engineering, tourism, transport and services Concentrate its strategic investments within sectors undergoing VISION consolidation and develop businesses to take a leading role in their industries. In Touri
Slide 31: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Hotel Management Construction & Resort Manag. Engineering, & Develop. Joint -Ventures Transport Insurance Car Hire Other Leisure &Residential Risk Capital & Logistics Brokerage & Retailing Businesses Fitness & Sport Development Travel Solinca Hotelaria
Slide 32: Sonae Capital Consolidated Figures
SONAE CAPITAL CONSOLIDATED FIGURES Million euro Turnover Residential Plywood 576 560 Development 24% 526 662 1% 479 626 461 412 553 Transport and Logistics Construction 9% and Engineering 26% 2000 2001 2002 2003 2004 2005 Refrigeration, Air Conditioning Aggregated Figures Consolidated and Cleaning F
Slide 33: Sonae SGPS
sonae sgps
Slide 34: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro 2005* 2004 ∆% Turnover 6,392.5 6,464.3 -1.1 Value created on investment properties 194.1 111.4 +74.2 Other operational income 587.8 444.6 +32.2 Operational Cash Flow (EBITDA) 947.8 938.3 +1.0 Operational Profit (EBIT) 618.1 593.4 +4.2 Net
Slide 35: Turnover - Sector Breakdown
SONAE SGPS TURNOVER Million euro SECTOR BREAKDOWN Wood Based 1.088 6,386 6,276 6,260 6,464 6,392 Panels*** 1.492 5,751 3.885 5,202 Retail**** 3.600 Shopping 272 4,213 ** Centres 4,058 ** 238 843 Telecom. 880 Sonae Capital 566 & Holding 464 1999 * 2000 2001 2002 2003 2004 2005 (262) Eliminations POC
Slide 36: Operational Cash Flow (EBITDA) - Sector Breakdown
SONAE SGPS OPERATIONAL CASH FLOW (EBITDA) Million euro SECTOR BREAKDOWN 938 948 Wood Based 154 Panels*** 214 284 649 637 744 ** Retail**** 604 279 546 674 ** Shopping 312 439 Centres 222 161 Telecom. 207 Sonae Capital 25 & Holding 12 1999 * 2000 2001 2002 2003 2004 2005 12 Eliminations POC IFRS 4 31
Slide 37: Profit for the Period - Sector Breakdown
SONAE SGPS PROFIT FOR THE PERIOD Million euro SECTOR BREAKDOWN 177 209 648 145 1 32 439 (46) 1 217 122 Retail Shopping Telecom. Sonae Eliminations Cont. Wood Retail Brazil Eliminations Disc. Total Portugal Centres Capital & Operations Based Operations Operations Holding Panels # 36
Slide 38: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 2005* 2004 Investment Properties 1,357.4 2,204.8 Tangible/Intangible Fixed Assets 2,229.6 3,452.7 Goodwill 245.6 453.2 Other Non Current Assets 301.9 434.8 Stocks 460.5 673.8 Customers and Other Current Assets 788.7 802.5 Investments, Cash and Cash
Slide 39: Total Assets - Sector Breakdown
SONAE SGPS TOTAL ASSETS Million euro Wood Based 0 8,598 8,281 Panels** 1,622 7,874 7,968 7,675 2,445 6,307 Retail*** 5,925 2,255 Shopping 1,563 Centres**** 2,609 1,182 Telecom. 1,037 Sonae Capital 1,486 & Holding 1999 * 2000 2001 2002 2003 2004 2005 1,780 (369) Eliminations POC IFRS (705) 31 Decembe
Slide 40: Gross Investment - Sector and Geographical Breakdown
SONAE SGPS GROSS INVESTMENT Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 42 880 118 Portugal Brazil 305 68% 6% 386 Rest of Europe 25% 29 Rest of the World 1% Wood Based Retail Shopping Telecom. Sonae Capital TOTAL Panels Centres and Holding # 39
Slide 41: Net Debt - December 2005
SONAE SGPS NET DEBT – 31 December 2005 Million euro SECTOR BREAKDOWN Wood Based 0 2,822 Panels* 430 196 Retail** 497 Shopping 499 Centres*** 811 1,913 1,620 250 Telecom. 261 Sonae Capital 501 & Holding 769 2004 2005 174 Eliminations 54 31 December 2004 Brazil 50% Sierra * Does not contribute to the
Slide 42: Consolidated Financial Structure - Net Debt
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Million euro NET DEBT 4.500 POC IFRS 4.000 3.899 3.500 3.330 3.337 3.214 3.074 2.822 3.000 2.851 2.574 2.500 2.000 1.913 1.620 1.500 1.000 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 4Q04 1Q05 2Q05 3Q
Slide 43: Consolidated Financial Structure - Net Gearing
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE NET GEARING (Net Debt/Shareholders’ Funds + Minority Interests) 300% 282% After Goodwill 250% elimination against reserves 209% 200% 172% 171% 159% 193% 155% 149% 150% 145% 121% 145% Before Goodwill elimination 123% 125% 100% against reserves 106% 50% 1Q00
Slide 44: 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 Net Debt / EBITD
Slide 45: Share Performance
SONAE SGPS SHARE PERFORMANCE During 2005, the Sonae SGPS, SA share price rose 51% (on a like for like basis*) compared to an increase of 13% in the PSI-20 index. Since the beginning of 2006, the Sonae SGPS, SA share price has already increased 14%, with an average daily transaction volume of 15.2 mi
Slide 46: Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Continue to deliver operational improvements. Consolidate market leadership positions. Strategic businesses are stable and confident in their future performance. Continue the search for value enhancing opportunities in existing businesses as well as in new
Slide 47: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt