Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Portuguese Equities Forum 2008
31 slides from Sonae Sgps Sa's conference presentation, October 2008
Slide 1: Investor Presentation – Portuguese Equities Forum
INVESTOR PRESENTATION INVESTOR PRESENTATION Portuguese Equities Forum New York - October 2008
Slide 2: Index
INVESTOR PRESENTATION INDEX 1. Sonae Company profile 2. Competitive strengths 3. Strategy 4. Highlights of 1H08 results 5. Appendix 2
Slide 3: Sonae Company Profile
INVESTOR PRESENTATION SONAE COMPANY PROFILE 1. BUSINESS MIX 2. CONSOLIDATED TURNOVER & EBITDA 3. HOLDING ROLE
Slide 4: Sonae Company profile: Business mix
Sonae Company profile INVESTOR PRESENTATION Business mix Sonae controls and actively manages a portfolio of businesses, each run in Focus on profitable growth at all business units independent manner by a fully dedicated team Sonae SGPS* 100% 50% 53.3% Sonae Distribuição: leading retail Sonae Distri
Slide 5: Consolidated turnover & EBITDA
Sonae Company profile INVESTOR PRESENTATION Consolidated turnover & EBITDA Consolidated Turnover CAGR Focus on >profitable 2% and growth Consolidated EBITDAunits at all business CAGR > 7% in 2005-2007 Turnover breakdown EBITDA breakdown 4,117 M€ 4,240 M€ 4,418 M€ 2,437 M€ 455 M€ 459 M€ 534 M€ 244 M€
Slide 6: Holding role
Sonae Company profile INVESTOR PRESENTATION Holding role Running nest costs of corporate Focus centre on profitable represent growth less than at all business 1.8 per thousand of units consolidated Turnover (2007: 8.2 million euros) Value Proposal: Collaboration with the sub-holdings in strategy and
Slide 7: Competitive strengths
INVESTOR PRESENTATION Competitive strengths 1. STRATEGIC ASSETS 2. COMPETENCIES 3. HOLDING AS VALUE ENHANCER
Slide 8: Strategic assets: leadership in Portuguese food retail
Competitive strengths INVESTOR PRESENTATION Strategic assets FocusLarge customer on profitable base growth at in allPortugal business units Leadership position in the Portuguese food retail sector Modern Retail market share Others, 1.1% 2 food formats: Continente and Modelo; Leclerc, 3% Continente:
Slide 9: Strategic assets: leadership in Portuguese shopping centres
Competitive strengths INVESTOR PRESENTATION Strategic assets FocusLarge customer on profitable base growth at in allPortugal business units Leadership position in the Portuguese shopping centre market 20 Shopping centres in Portugal; 1H08 OMV by country 498.081 m2 of Gross Lettable area distributed
Slide 10: Strategic assets: 3rd telecom player in Portugal
Competitive strengths INVESTOR PRESENTATION Strategic assets FocusLarge customer on profitable base growth at in allPortugal business units 3rd telecom player in the Portuguese telecoms market 3rd telecom player in the Portuguese telecoms market; #3 mobile Operator with 20% market share; ~3 million
Slide 11: Strategic assets: real estate ownership at prime locations
Competitive strengths INVESTOR PRESENTATION Strategic assets Focus on profitable Real estate growth ownership andat prime all business units locations 543 thousand m2 of retail sales area owned Prime locations of stores: unique and difficult to replicate; First mover advantage: Sonae Distribuição wa
Slide 12: Strategic assets: 48 shopping centres owned/co-owned
Competitive strengths INVESTOR PRESENTATION Strategic assets Focus on profitable Real estate growth ownership andat prime all business units locations 48 shopping centres owned/co-owned Shopping centres with premium locations: city centres and dominant centres; International presence in 7 countries:
Slide 13: Strategic assets: single integrated IP convergent network
Competitive strengths INVESTOR PRESENTATION Strategic assets Focus on Single profitableIP integrated growth at all business convergent networkunits Ownership of a fixed backbone and mobile network Mobile network capillarity and capacity: GSM network; HSDPA/HSUPA enabled network, covering ~75% of the
Slide 14: Competencies: non-food retail formats
Competitive strengths INVESTOR PRESENTATION Competencies Focus on Aggressive development of profitable growthnew differentiating at all businessand concepts units product innovation Extension of business portfolio into non-food retail formats Taking advantage of existing synergies with its food reta
Slide 15: Competencies: innovative offers at the telco business
Competitive strengths INVESTOR PRESENTATION Competencies Focus on Aggressive development of profitable growthnew differentiating at all businessand concepts units product innovation Disruptive and innovative offers at the telco business Launch of “TAG”, a mobile offer aimed at the youth market (~16%
Slide 16: Competencies: innovative shopping centre solutions
Competitive strengths INVESTOR PRESENTATION Competencies Focus on profitable growth at all business units Aggressive development of differentiating new concepts and product innovation Modern and innovative solutions applied in the conception of shopping centres Sonae Sierra has had a significant rol
Slide 17: Competencies: integrated approach to shopping centres
Competitive strengths INVESTOR PRESENTATION Competencies Focus on profitable growth at all business units Integrated approach to the shopping centre businesses Policy of ownership, development and management activities at the shopping centre business Ensures a long term view of investment and value
Slide 18: Strategy
INVESTOR PRESENTATION STRATEGY 1. KEY STRATEGIC GOALS 2. DELIVERING THE GOALS
Slide 19: Key strategic goals
Strategy INVESTOR PRESENTATION Key strategic goals Focus Focus on profitable on growth growth at all and profitability atbusiness unitsunits all business 1 Consolidate retail leadership in the Portuguese market; Accelerate growth and increase market share at the telecom business; Strong pace of orga
Slide 20: Delivering the goals: organic growth
Strategy INVESTOR PRESENTATION Delivering the goals Sonae is confident of its strategy to face current challenges and on fulfilling its commitments, despite Focus on profitable growth at all business units the current economic environment and the clear slowdown of consumer demand Group Turnover incr
Slide 21: Delivering the goals: international expansion
Strategy INVESTOR PRESENTATION Delivering the goals Sonae is confident of its strategy to face current challenges and on fulfilling its commitments, despite Focus on profitable growth at all business units the current economic environment and the clear slowdown of consumer demand Retail opened 2 Spo
Slide 22: Highlights of 1H08 Results
INVESTOR PRESENTATION HIGHLIGHTS OF 1H08 RESULTS 1. SONAE GROUP 2. RETAIL 3. SHOPPING CENTRES 4. TELECOMS
Slide 23: Highlights of 1H08 results: Sonae Group
Highlights of 1H08 results INVESTOR PRESENTATION Sonae Group Focus on growth and profitibility, delivering superior shareholder value 2,436.7 TURNOVER EBITDA (M.€) EXCLUDING 243.9 1,972.2 VALUE CREATED 218.7 ON INVESTMENT PROPERTIES (M.€) 1,204.2 1,232.5 133.7 1,015.6 119.9 956.6 110.3 98.8 12% 11%
Slide 24: Highlights of 1H08 results: Retail
Highlights of 1H08 results INVESTOR PRESENTATION Retail Solid turnover and like-for-like sales growth, despite the tough economic environment and the competitive pressures in the Portuguese retail market 1,879.4 126.7 TURNOVER EBITDA (M.€) (M.€) 113.6 1,495.1 77.8 952.9 67.8 926.5 725.5 769.7 9% 48.
Slide 25: Highlights of 1H08 results: Shopping centres
Highlights of 1H08 results INVESTOR PRESENTATION Shopping centres Sonae Sierra was able to optimize the performance of its shopping centres, mitigating the negative economic environment prevailing in the real estate market 89.7 EBITDA Loan to (M.€) Value 70.8 42% 40% 41% 47.6 42.0 38% 36.3 34.5 36%
Slide 26: Highlights of 1H08 results: Telecoms
Highlights of 1H08 results INVESTOR PRESENTATION Telecoms High level of growth in customers and customer revenues, despite the increase level of competition, on the back of important commercial initiatives TURNOVER 73.2 475.6 EBITDA 68.7 (M.€) (M.€) 413.4 39.2 237.7 237.9 34.0 34.1 34.6 214.5 198.9
Slide 27: Appendix
INVESTOR PRESENTATION APPENDIX 1. ANALYSTS’ CONSENSUS 2. SONAE FINANCIAL RATIOS 3. DEBT MATURITY PROFILE 4. LOAN TO VALUE
Slide 28: Analysts' consensus
Appendix INVESTOR PRESENTATION Analysts’ consensus Average price target of 1.35€/share, 141%% above closing price of 0.56€/share on 18 September 2008 Million BPI BES BANIF UBS JPM Fidentiis Santand Avg Insurance Brokerage 20 - - 70 - - - - Retail 2,020 2,391 2,541 2,030 1,200 2,552 2,734 2,210 Shopp
Slide 29: Sonae financial ratios
Appendix INVESTOR PRESENTATION Sonae financial ratios Net debt stood at 3,138 million euros by end 1H08; Leverage increased but balance sheet is still strong and sound Including Sonae Sierra Excluding Sonae Sierra Caveats when analysing Sonae’s leverage ratios: => EBITDA includes 2 quarter’s contrib
Slide 30: Debt maturity profile
Appendix INVESTOR PRESENTATION Debt maturity profile At end of 1H08, the weighted average maturity of Sonae Group debt stood at approximately 5.3 years; no significant amortizations of bank loans until second half 2010 Debt maturity profile: % debt to be paid after period N 50% 24% 13% 9% 2% 3% Year
Slide 31: Loan to value
Appendix INVESTOR PRESENTATION Loan to value Based on Sonae’s financial investments, valued at market consensus, the Holding loan to value at end 1H08 reaches 13.9% Holding net debt/Value of financial investments @ market consensus 31