Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (March 2016)
63 slides from Sonae Sgps Sa's investor presentation, Mar 31, 2016
Slide 1: Institutional Presentation 2015
INSTITUTIONAL PRESENTATION 2015 COMMUNICATION, BRAND AND CORPORATE RESPONSIBILITY DIRECTION
Slide 2: History
1/ HISTORY
Slide 3: Start-up of the business and vertical integration
1/ HISTORY START-UP OF THE BUSINESS DEVELOPMENT IN THE SECTOR AND VERTICAL INTEGRATION 50’s 50’s 60’s 70’s 18 th August 1959 Belmiro de Azevedo Diversification of Sonae, through the Foundation of Sonae - was hired acquisition of NOVOPAN (particleboard manufacturing unit) Sociedade Nacional de and ad
Slide 4: Diversification through acquisitions and set up of new businesses (80s)
1/ HISTORY DIVERSIFICATION THROUGH ACQUISITIONS AND THE SET UP OF NEW BUSINESSES 80’s 8’s Set up of Modelo Continente Hipermercados SARL Inauguration of Porto Sheraton Hotel (with the French group Promodes as joint shareholder) Set up of the Group Holding: Sonae Investments, SGPS Set up of Sonae (UK
Slide 5: Diversification through acquisitions and set up of new businesses (90s)
1/ HISTORY DIVERSIFICATION THROUGH ACQUISITIONS AND THE SET UP OF NEW BUSINESSES 90’s Launch of the newspaper Público Sonae: the 1st Portuguese company to be a member of WBCSD Set up of Sonae Distribuição Brasil (World Business Council for Sustainable Development) Sonae Indústria acquires a controll
Slide 6: Development of strategic businesses and expansion into telecommunications
1/ HISTORY DEVELOPMENT OF STRATEGIC BUSINESSES INTERNATIONAL GROWTH AND EXPANSION INTO TELECOMMUNICATIONS AND REORGANIZATION OF THE BUSINESS PORTFOLIO 00’s Sonae Sierra opens AlgarveShopping Belmiro de Azevedo becomes Chairman of Sonae Presentation of the corporate strategy WeDo commercial launch Aq
Slide 7: International growth and reorganization of the business portfolio 2013
1/ HISTORY INTERNATIONAL GROWTH AND REORGANIZATION OF THE BUSINESS PORTFOLIO 10’s 2013 Launch of the new corporate identity Creation of the convenience supermarkets through franchising (Meu Worten acquires 7 PC City stores in Spain Super) International expansion of several insignias from Sonae Sonae
Slide 8: International growth and reorganization of the business portfolio 2014
1/ HISTORY INTERNATIONAL GROWTH AND REORGANIZATION OF THE BUSINESS PORTFOLIO 10’s 2014 Rollout of new store concepts for Worten, Sport Zone, MO and Zippy Launch of 1st ZU store, specialized in pets and cats Rebranding from book.it to note! Franchising of Well’s and note! Sport Zone opens first inter
Slide 9: International growth and reorganization of the business portfolio 2015
1/ HISTORY INTERNATIONAL GROWTH AND REORGANIZATION OF THE BUSINESS PORTFOLIO 10’s 2015 Meu Super reaches 150 stores in 1Q15 Sonae MC announces the creation of an affiliation agreement with the central Sport Zone enters the Indian market purchasing body IFA Group Belmiro de Azevedo announces the deci
Slide 10: Corporate Profile
2/ CORPORATE PROFILE
Slide 11: Sonae
2/ CORPORATE PROFILE EFANOR SONAE CAPITAL 63% SONAE 53% SONAE INDÚSTRIA 69% SONAE MC SONAE SR SONAE RP SONAE FS SONAE IM SONAE SIERRA NOS Food Retail Specialised Retail Financial Investment Shopping Centres Telco Retail Properties Services Management developer, owner and manager 100% 100% 100% 100%
Slide 12: International Expansion
2/ CORPORATE PROFILE INTERNATIONAL EXPANSION 72 * COUNTRIES 12 * December 2015 (This includes operations, third party services, representative offices, franchising agreements and partnerships)
Slide 13: Key Indicators FY2015
2/ CORPORATE PROFILE KEY INDICATORS FY2015 Turnover EBITDA Net Financial Debt 5,014M€ 393M€ 1,293M€ Net Income * CAPEX Dividends Paid 175M€ 300M€ 150M€ * attributable to shareholders 13
Slide 14: Mission & Values
3/ MISSION & VALUES
Slide 15: Mission
3/ MISSION & VALUES MISSION To create long-term economic and social value, bringing the benefits of progress and innovation to an ever increasing number of people. 15
Slide 16: Values
3/ MISSION & VALUES VALUES TRUST AND INTEGRETY PEOPLE ARE THE CENTRE AMBITION INNOVATION OF OUR SUCESS We are committed to creating Setting constant challenges and Ambition is born from Innovation is at the heart of our economic value in the medium being open to change are crucial continuously estab
Slide 17: Strategic Guidelines
4/ STRATEGIC GUIDELINES
Slide 18: Organization's Strategic Pillars
4/ STRATEGIC GUIDELINES ORGANIZATION’S STRATEGIC PILLARS INTERNATIONAL EXPANSION DIVERSIFICATION OF LEVERAGE AND REINFORCE INVESTMENT STYLE EXCEPTIONAL ASSETS AND COMPETENCES Our home market has limited size and A faster international growth pace Future growth options depend on the growth potential,
Slide 19: Business Portfolio
5/ BUSINESS PORTFOLIO
Slide 20: Food Retail
5.1/ FOOD RETAIL
Slide 21: Food Retail
5/ BUSINESS PORTFOLIO FOOD RETAIL SONAE MC is Sonae´s business area responsible for food retail, being Portugal’s leader Turnover: 3,490M€ #1 FOOD RETAIL IN PORTUGAL Underlying EBITDA: 215 M€ # stores: 746 (237 franchises) Total sales area: 673,000 m2 21 2015
Slide 22: Food Retail
5/ BUSINESS PORTFOLIO FOOD RETAIL SONAE MC has various types of businesses and brands Convenience Proximity stores in a Coffee shops Hypermarkets supermarkets Supermarkets franchising format Bookshops, Health, well-being Dogs and cats Stationer and gifts stationer and gifts and opticians products an
Slide 23: Food Retail
5/ BUSINESS PORTFOLIO FOOD RETAIL BOM BOCADO/ BAGGA CONTINENTE CONTINENTE MODELO CONTINENTE BOM DIA Coffee shops Hypermarkets Supermarkets Convenience supermarkets 111 stores 40 stores 123 stores 52 stores Sales area of 6,000 m2 Sales area of 283,000 m2 Sales area of 246,000 m2 Sales area of 58,000
Slide 24: Specialised Retail
5.2/ SPECIALISED RETAIL
Slide 25: Specialised Retail
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL SONAE SR is responsible for Sonae’s specialised retail in: sports, fashion and electronics Turnover: 1,294 M€ Presently 5 formats Underlying EBITDA: 5 M€ outside Portugal (Worten, Sport Zone, Zippy, MO and # stores : 585 (80 franchises) Losan) Sales area: 377
Slide 26: Specialised Retail: Electronics Division
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL ELECTRONICS DIVISION Electrical appliances, consumer electronics Mobile and entertainment Telecommunications 26 2015
Slide 27: Specialised Retail: Electronics Division
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL ELECTRONICS DIVISION WORTEN WORTEN MOBILE Electrical appliances, Mobile Telecommunications consumer electronics and entertainment Own stores: 39 in Portugal 138 in Portugal (1,000m2 sales area) 50 in Spain (188,000m2 sales area) Franchised stores: 4 in Portug
Slide 28: Specialised Retail: Sports & Fashion Division
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL SPORTS & FASHION DIVISION Sports clothing and equipment Outdoor Sports Cycling products Surf & Lifestyle Clothing, footwear Clothing, footwear and accessories for Fashion for Kids and accessories babies and children Man & Woman 28 2015
Slide 29: Specialised Retail: Sports Division
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL SPORTS DIVISION SPORT ZONE Sports equipment and clothing Own Stores: 75 in Portugal 33 in Spain (95,000m2 sales area) Franchised stores: 4 in Portugal 5 in 3 countries 29 2015
Slide 30: Specialised Retail: Fashion Division
5/ BUSINESS PORTFOLIO SPECIALISED RETAIL FASHION DIVISION MO ZIPPY Clothing, footwear and Clothing, footwear and accessories accessories for babies and children Own stores: Own stores: 108 in Portugal 38 in Portugal (54,000m2 sales area) 24 in Spain (19,000m2 sales area) Franchised stores: Franchise
Slide 31: Retail Properties
5.3/ RETAIL PROPERTIES
Slide 32: Retail Properties
5/ BUSINESS PORTFOLIO / RETAIL PROPERTIES Sonae RP is Sonae’s business area that aims to create value in managing and exploring its real estate assets through a SONAE RP is an independent business unit focused on management, development and enhancement of its retail proactive and efficient attitude,
Slide 33: Retail Properties
5/ BUSINESS PORTFOLIO RETAIL PROPERTIES FOOD RETAIL – SONAE MC SPECIALISED RETAIL – SONAE SR INVESTMENT MANAGEMENT | SONAE IM 284 STORES 171 STORES 4 STORES •27 Continente stores; sales area of ~7,400 m2 •73 Worten stores; sales area of ~700 m2 •4 stores; sales area of ~1.900 m2 •73 Continente Model
Slide 34: Financial Services
5.4/ FINANCIAL SERVICES
Slide 35: Financial Services
5/ BUSINESS PORTFOLIO / FINANCIAL SERVICES Sonae FS is a business segment responsible to fostering financial services. It includes the “Universo” card, “Dá” card, Continente Money Transfer and Cross-Selling over store credit. 35 2015
Slide 36: Investment Management
5.4/ INVESTMENT SS MANAGEMENT a 1 \ . \
Slide 37: Investment Management
5/ BUSINESS PORTFOLIO INVESTMENT MANAGEMENT Sonae IM creates value for Sonae supporting the implementation of corporate and business strategies, maximising shareholder return on its portfolio of companies, actively supporting the planing and execution of mergers and acquisitions and strenghtening th
Slide 38: Investment Management
5/ BUSINESS PORTFOLIO INVESTMENT MANAGEMENT Sonae IM has various types of businesses and brands Cyber Security Software and Information Systems Services Insurance DIY and construction Retail technology brokerage 38 materials Media 2015
Slide 39: Shopping Centres
5.5/ SHOPPING CENTRES
Slide 40: Shopping Centres
5/ BUSINESS PORTFOLIO SHOPPING CENTRES SONAE SIERRA is a Sonae business area and an international shopping centre specialist, passionate about creating unique shopping experiences. Portugal It is owned 50% by Sonae and 50% by Grosvenor. Spain Italy Owner: 45 shopping centres Germany Greece Managemen
Slide 41: Shopping Centres
5/ BUSINESS PORTFOLIO SHOPPING CENTRES Management of About More than 2,3 million m2 9,000 430 million of GLA (gross leasable area) tenants visitors Turnover EBIT 226 M€ 105 M€ 41 2015
Slide 42: Telecommunications
5.6/ TELECOMMUNICATIONS
Slide 43: Telecommunications
5/ BUSINESS PORTFOLIO TELECOMMUNICATIONS Through Sonaecom, Sonae holds a participation of 24.4% at NOS share capital. NOS is a company with a strong competitive position in every segment of the Portuguese telecommunications market, with a leading position in convergence. NOS is a telecommunications
Slide 44: Telecommunications: NOS
5/ BUSINESS PORTFOLIO TELECOMMUNICATIONS NOS EBITDA CAPEX Net results 533 M€ 408 M€ 83 M€ More than More than 2.85 M RGUs 4.02 M customers convergent in the mobile segment * RGU – Revenue Generating Unit 44 2015
Slide 45: Human Capital
6/ HUMAN CAPITAL
Slide 46: Employees Profile
6/ HUMAN CAPITAL EMPLOYEES PROFILE Employees are at the heart of our success and constitute a distinguishing factor in the market - because of their talent, energy, professionalism and dedication. Sonae employs circa SONAE IS THE BIGGEST 40,000 employees PRIVATE EMPLOYER IN PORTUGAL 46
Slide 47: Employees Profile
6/ HUMAN CAPITAL EMPLOYEES PROFILE EMPLOYEES HUMAN CAPITAL EMPLOYEES BY SEGMENT BY GENDER BY AGE pessoas Food Retail ~63.0% Women ~66% 18 – 34 ~55% Specialised Retail ~21.0% Men ~34% 35 – 44 ~29% NOS ~6.0% 45 – 54 ~13% Investment Management ~5.0% > 55 ~3% Shopping Centres ~3.0% Retail Properties ~0.
Slide 48: Training
6/ HUMAN CAPITAL TRAINING The training and development of employees are vital elements for the strategy of creating value in the short, medium and long term. 1.3 + than Employees have their training offer organized in a learning million system that allows them to develop their skills throughout thei
Slide 49: Sustainability
i al jie SUSTAINABILIM? 5; | ¢
Slide 50: Main Milestones
7/ SUSTAINABILITY MAIN MILESTONES Sustainability principles have been part of Sonae since its creation 1995 1999 2001 2004 Launch of “Projeto Horizon”, Launch of the Eco2 XXI Publication of the 1st Sonae joins the having as its main goal the programme: effective Environmental Report UN Global Compac
Slide 51: Main Milestones
7/ SUSTAINABILITY MAIN MILESTONES 2005 2007 2008 2009 Set up of the Publication of the 1st Publication of “Sonae, Much Adoption of Fishing Sustainability Forum Sustainability Report More Than Numbers” Sustainability Policy Subscription of the HIV Code of Publication of “A Sonae signs on to the Condu
Slide 52: Main Milestones
7/ SUSTAINABILITY MAIN MILESTONES 2010 2011 2012 2013 Sonae’s Sustainability Forum Integration of GEP Global Creation of the Sustainability Integration within the event , under the theme Enterprise Project Award European Commission’s Forum “Sonae For the Better” Sonae joins for Relations between Ret
Slide 53: Main Milestones
7/ SUSTAINABILITY MAIN MILESTONES 2014 2015 Joined the High Level Group on the Competitiveness of the Sonae signs the Paris Pledge for Action European Retail Sector, a new advisory group for the European Comission. Sonae was distinguished in the fight against climate change by Release of the new Cod
Slide 54: Social Responsibility
7.1/ SOCIAL RESPONSIBILITY
Slide 55: Community Support
7/ SUSTAINABILITY COMMUNITY SUPPORT Sonae believes that its businesses can contribute for the promotion of the social and cultural well- being in the communities where they operate, acting on 6 priorities: ENVIRONMENTAL SOCIAL HEALTH SCIENCE AND EDUCATION CULTURE AWARENESS SOLIDARITY AND SPORTS INNO
Slide 56: Community Support
7/ SUSTAINABILITY COMMUNITY SUPPORT 1,557 8.4 M€ 916 4,400 Institutions Of direct support Volunteers Volunteering supported for the community engaged hours 56 2015
Slide 57: Innovation
8/ INNOVATION
Slide 58: Innovation in Numbers
8/ INNOVATION INNOVATION IN NUMBERS More than EXAMPLES OF INNOVATION ACTIONS: 100 M€* Invested in Creative Problem Solving sessions and Design Thinking activities I+D+I ShineOn (initiatives to collect ideas from employees) BizShare (sharing of knowledge and experiences) Academy2Business More than (c
Slide 59: Brands in Retail
9/ BRANDS = @ IN RETAIL \ :
Slide 60: Brands in Retail
9/ BRANDS IN RETAIL BRANDS IN RETAIL 82 92,000 BRANDS PRODUCTS 60 2015
Slide 61: Awards
10/ AWARDS
Slide 62: Major Awards
10/ AWARDS MAJOR AWARDS In 2015 147 awards 52 international 62 2015
Slide 63: Institutional Presentation 2015
INSTITUTIONAL PRESENTATION 2015 COMMUNICATION, BRAND AND CORPORATE RESPONSIBILITY DIRECTION