Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Non-Deal Roadshow (April 2009)
39 slides from Sonae Sgps Sa's roadshow presentation, April 2009
Slide 1: Investor Roadshow Presentation
SONAE INVESTOR ROADSHOW PRESENTATION April 2009
Slide 2: Full Year 2008 Accounts Presentation
SONAE FULL YEAR 2008 ACCOUNTS PRESENTATION
Slide 3: Main Financial Indicators
MAIN FINANCIAL INDICATORS SONAE CONTINUES TO GROW: +21% AND INCREASING OPERATIONAL CASH-FLOW: +15% DEMONSTRATING ITS OUTSTANDING EXECUTION CAPABILITY
Slide 4: Main Financial Indicators: Turnover and EBITDA
MAIN FINANCIAL INDICATORS Turnover EBITDA EUR million 5,353 617 4,417 +21% 536 +15% 2007 2008 2007 2008
Slide 5: Turnover: Growing Contribution From All Businesses
TURNOVER GROWING CONTRIBUTION FROM ALL BUSINESSES: RETAIL: +25% SHOPPING CENTRES: +16% TELECOMS: +9% Full delivering g on initial market g guidance
Slide 6: Turnover: Sonae Distribuição
TURNOVER SONAE DISTRIBUIÇÃO EUR million 4,211 • Successful integration of the acquired operating units 3 376 3,376 +25% 25% • Implementation of a strong organic growth plan in Portugal • Strong investment made in the development of private and exclusive label programmes • Solid growth posted by our
Slide 7: Turnover: Sonae Sierra
TURNOVER SONAE SIERRA EUR million 169 145 +16% • 5% like for like growth of rents • Increase of fixed rents (+17%) and turnover rents ((+11%)) • New openings in 2007 (+3) and 2008 (+4) 2007 2008
Slide 8: Turnover: Sonaecom
TURNOVER SONAECOM EUR million • Successful integration of Tele2 and ONI 954 • Benefits from investments in network extension and capacity 877 +9% • Successful commercial initiatives, brand ppromotion, strengthening g g of the distribution network and improvement of customer service • Good operationa
Slide 9: Operational Cash-Flow: Growing Contribution From All Businesses
OPERATIONAL CASH-FLOW GROWING CONTRIBUTION FROM ALL BUSINESSES FOR CONSOLIDATED EBITDA: RETAIL: +18% SHOPPING CENTRES: +29% TELECOMS: +4% Fullyy delivering g on initial market g guidance
Slide 10: Operational Cash-Flow: Sonae Distribuição
OPERATIONAL CASH-FLOW SONAE DISTRIBUIÇÃO EUR million 354 • Recurrent EBITDA margin of 8,5%, on an ex ex-fuel fuel basis 300 +18% • Synergies resulting from the successful integration of the acquired operating units • Implementation of operational efficiency improvement programmes 2007 2008
Slide 11: Operational Cash-Flow: Sonae Sierra
OPERATIONAL CASH-FLOW SONAE SIERRA EUR million 90 • Larger asset base under management (openings and acquisitions) 69 +29% • Good operational performance of the portfolio 2007 2008
Slide 12: Operational Cash-Flow: Sonaecom
OPERATIONAL CASH-FLOW SONAECOM EUR million • Successful investment 179 for growth strategy; 173 +4% • Continued improvement of operational p efficiency; y • Focus on delivering greater value to the existing wireline customer base. 2007 2008
Slide 13: Direct Net Income, Group Share
DIRECT NET INCOME I GROUP SHARE DIRECT NET INCOME: 159 M€ On a year of record high interest rates and high pace of investment for growth
Slide 14: Direct Net Income bridge 2007 to 2008
DIRECT NET INCOME I GROUP SHARE Direct net income EUR million • Improved direct Net Income 199 4 at the retail business, in spite of high g investment p pace; -7 7 159 -32 -4 • Increased operational efficiency of shopping centres, ppartially y compensated increased financial costs; • Improvement p o
Slide 15: Indirect Net Income, Group Share: Improved Cash-Flow
INDIRECT NET INCOME I GROUP SHARE IMPROVED CASH-FLOW CASH FLOW PROFILE: +65 M€ NEW OPENINGS: +19 M€ YIELDS INCREASE ACROSS EUROPE: -205 M€ Non-cash effect
Slide 16: Indirect Net Income bridge
INDIRECT NET INCOME I GROUP SHARE Indirect net income EUR million 19 • Improved p operational p 65 -205 efficiency of shopping centres owned; • Three new shopping pp g centres and one expansion in 2008; • Average yield increasing -121 57bps p Cash-flow Openings Yields Indirect net profile income
Slide 17: Continued Investment for Future Growth
INVESTMENT CONTINUED INVESTMENT FOR FUTURE GROWTH: 902 M€
Slide 18: Investment by business
INVESTMENT Investment EUR million Retail Shoppings • Strong expansion of the retail T l Telecoms business (organic growth and Other 185 acquisitions) 299 • Development of new shopping centres 388 30 • Investment in network extension and capacity; initial development of the fibre optics network
Slide 19: Adequate Capital Structure
CAPITAL STRUCTURE ADEQUATE CAPITAL STRUCTURE At each business, supporting future development plans
Slide 20: Net Debt/EBITDA
CAPITAL STRUCTURE NET DEBT/EBITDA RETAIL: 3.5X 3 5X TELECOMS: 2.5X
Slide 21: Loan to Value
CAPITAL STRUCTURE LOAN TO VALUE SHOPPING CENTRES: 47% HOLDING: 23%
Slide 22: Maintenance of Last Year's Dividend Policy
DIVIDENDS MAINTENANCE OF LAST YEAR’S DIVIDEND POLICY DIVIDEND PER SHARE: 3 CENTS
Slide 23: Dividend Yield: 6.9%
DIVIDENDS DIVIDEND YIELD: 6,9% CONSIDERING 2008 2008.12.31 12 31 SHARE PRICE
Slide 24: Investment Portfolio Valuation
INVESTMENT PORTFOLIO VALUATION ANALYSTS CONSENSUS 144% ABOVE SHARE PRICE MARKET MULTIPLES VALUATION 139% ABOVE SHARE PRICE SONAE CONSIDERED “TOP TOP PICK PICK” FOR 2009 BY SEVERAL MARKET ANALYSTS
Slide 25: Share Price vs Consensus and Market Multiples
INVESTMENT PORTFOLIO VALUATION Share price vs Consensus Share price vs Market multiples EUR 1.07 1.05 0.44 +144% 0.44 +139% Share Consensus Share Market price price multiples
Slide 26: Preparing Future Growth
SONAE PREPARING FUTURE GROWTH
Slide 27: Corporate Strategic Guidelines; New Portfolio Organisation
1. CORPORATE STRATEGIC GUIDELINES 2. NEW PORTFOLIO ORGANISATION
Slide 28: 1. Corporate Strategic Guidelines
1. CORPORATE STRATEGIC GUIDELINES 2. NEW PORTFOLIO ORGANISATION
Slide 29: Go International
1. CORPORATE STRATEGIC GUIDELINES GO INTERNATIONAL Internationalisation, focused on our core businesses (and adjacent arenas), will be our key growth driver for many years to come. Our aim is to transform Sonae S in a large multinational corporation.
Slide 30: Diversify Investment Style
1. CORPORATE STRATEGIC GUIDELINES DIVERSIFY INVESTMENT STYLE We will look to leverage our resources and the effectiveness of our strategy implementation plans, by adopting the most appropriate investment style or mix of styles on each business. Sonae will establish even more partnerships and invest
Slide 31: Leverage Our Exceptional Assets
1. CORPORATE STRATEGIC GUIDELINES LEVERAGE OUR EXCEPTIONAL ASSETS We will continue to explore new business opportunities that leverage g on our exceptional p asset base in Portugal. g These new ventures should profit from global trends, have a clear path to internationalisation and have the potentia
Slide 32: We Will Move to a New Organisation
1. CORPORATE STRATEGIC GUIDELINES OUR SUCCESSION PLANS AND THESE NEW STRATEGIC GUIDELINES, WE WILL MOVE TO A NEW ORGANISATION.
Slide 33: 2. New Portfolio Organisation
1. CORPORATE STRATEGIC GUIDELINES 2. NEW PORTFOLIO ORGANISATION
Slide 34: New Portfolio Organisation: Sonae structure
2. NEW PORTFOLIO ORGANISATION 100% SONAE 100% 50% 53% SONAE DISTRIBUIÇÃO SONAE SIERRA SONAECOM Continente Worten Mobile Sierra Developments p Optimus p Modelo Vobis Sierra Investments Clix Bom Bocado SportZone Sierra Management Wholesale Á Área Saúde Loop Sonae Sierra Brazil Software & Systems Integ
Slide 35: Reorganise Retail in Two Core Businesses and a New Related Business
2. NEW PORTFOLIO ORGANISATION 1. REORGANISE RETAIL IN TWO CORE BUSINESSES AND A NEW RELATED BUSINESS SONAE SONAE Sonae Sonae Modelo Sonae Sonae Distribuição Sierra Sonaecom Continente Retalho Sierra Sonaecom Especializ. Retail Real Estate
Slide 36: Merge Sonae Holding's and Sonae Distribuição's Corporate Centres
2. NEW PORTFOLIO ORGANISATION 2. MERGE SONAE HOLDING’S AND SONAE DISTRIBUIÇÃO’S CORPORATE CENTRES SONAE SONAE Corporate Centre New Corporate Centre Corporate Corporate Corporate Corporate Corporate Centre Centre Centre Centre Centre Sonae Sonae Sonae Modelo Sonae S Sonaecom Retalho Sonaecom Distribu
Slide 37: Incorporate a New Investment Management Area
2. NEW PORTFOLIO ORGANISATION 3. INCORPORATE A NEW INVESTMENT MANAGEMENT AREA SONAE Sonae Modelo Retalho Sonae Sierra Sonaecom Continente Especializ. Retail Real Estate Investment Management MDS Raso MaxMat ...
Slide 38: New Portfolio Organisation: Core Businesses and Partnerships
2. NEW PORTFOLIO ORGANISATION SONAE Sonae Modelo Retalho Sonae Sierra Sonaecom Continente Especializ. Retail Real Investment Continente Worten Sierra Developments Optimus Estate Management Modelo Worten Mobile Sierra Investments Clix Bom Bocado Vobis Sierra Management Wholesale Food and non-food Ins
Slide 39: Investor Roadshow Presentation
SONAE INVESTOR ROADSHOW PRESENTATION April 2009