Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2019)
25 slides from Sonae Sgps Sa's investor presentation, September 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2019
Slide 2: Who we are
Who we are A long-living and listed company 1. A strong corporate culture with a clear mission and a robust set of values with a majority shareholder 2. A portfolio of businesses with leading market positions and strong linkages 3. A stable shareholder structure which enables a long term view of eco
Slide 3: Our values and beliefs
1. A STRONG CORPORATE CULTURE WITH A CLEAR MISSION AND A ROBUST SET OF VALUES Our values Our beliefs Trust and Integrity We are a company which is majority owned by one shareholder who Corporate has shaped our culture and beliefs and we are a publicly traded responsibility company with a large free
Slide 4: Our portfolio
2. A PORTFOLIO OF BUSINESSES WITH LEADING MARKET POSITIONS AND STRONG LINKAGES Our portfolio Food retail Electronics Fashion Sports Financial services Real estate Tech for retail, Telecoms retail retail retail and insurance developer, owner telco and brokerage1 and manager cybersecurity 100% 100% 10
Slide 5: Current shareholder structure
3. A STABLE SHAREHOLDER STRUCTURE WHICH ENABLES A LONG TERM VIEW OF ECONOMIC AND SOCIAL VALUE CREATION Current shareholder structure Shareholder structure1 Reference shareholder, Efanor, a family holding Free float company 53% Efanor Free Float of aprox. 36% 1% Notes Management 2% 2% a) shares held
Slide 6: Strong sustainability focus
3. A STABLE SHAREHOLDER STRUCTURE WHICH ENABLES A LONG TERM VIEW OF ECONOMIC AND SOCIAL VALUE CREATION Strong sustainability focus 5 action axes: our path towards a sustainable future Sonae’s mission of creating social (as well as CO2 and Diversity economic) value is well Nature and Community climat
Slide 7: New BoD and Management team
4. BEST PRACTICE CORPORATE GOVERNANCE INCLUDING A DIVERSE BOARD WITH INDEPENDENT DIRECTORS New BoD and Management team Management team 2019-2022 mandate (elected at AGM of April 30 2019) th Cláudia Azevedo João Dolores João Günther Amaral Paulo Azevedo Ângelo Paupério Lorraine Trainer CEO CFO Chief
Slide 8: Group companies' CEOs
4. BEST PRACTICE CORPORATE GOVERNANCE INCLUDING A DIVERSE BOARD WITH INDEPENDENT DIRECTORS Group companies’ CEOs A team of Group Senior Executives with extensive expertise in each sector Each business with specialized and focused management teams Strong linkages between Luís Miguel Mota Luís Fernand
Slide 9: Recent performance
5. STRONG TRACK RECORD OF OPERATIONAL AND FINANCIAL PERFORMANCE Recent performance Proportional turnover evolution Proportional underlying EBITDA evolution (€M) (€M, pre IFRS16) +6.3% 6,569 6,237 +7.2% 5,814 570 535 497 2016 2017 2018 2016 2017 2018 Note: These are pro-forma and proportional managem
Slide 10: Return on invested capital
5. STRONG TRACK RECORD OF OPERATIONAL AND FINANCIAL PERFORMANCE Return on invested capital Invested Capital breakdown RoIC evolution1 (€6.0 bn, June 2019, post IFRS16) (%, post IFRS16 since 4Q18) ISRG Other 9.2 9.2 NOS 8.8 1% 11% 0% 8.3 8.0 6.4 6.6 6.8 Sonae MC 5.9 41% 34% Sonae Sierra 0% 3% 4% 6% W
Slide 11: 1H19 Results
5. STRONG TRACK RECORD OF OPERATIONAL AND FINANCIAL PERFORMANCE 1H19 Results Solid start of the year Turnover evolution Underlying EBITDA evolution Consolidated turnover (€M) (€M post IFRS16) +11% increased by 11% y.o.y. of 2,985 2,690 benefiting from a strong +24% growth at Sonae MC and 243 195 Son
Slide 12: Capital structure
6. SOLID CAPITAL STRUCTURE AND OPERATING CASH FLOW Capital structure Net debt Capital structure (€M) (pre IFRS16) equity net debt 3,479 Over the last years, Sonae has been able to 31% consistently decrease its 1,724 -50% debt and reinforce its 63% capital structure 1,755 Between 2009 and 2019, Sonae
Slide 13: Capital structure
6. SOLID CAPITAL STRUCTURE AND OPERATING CASH FLOW Capital structure Sonae MC – Food business NOS – Telco business Net Debt is held by each Net debt / EBITDA Net debt / EBITDA sub holding 2.7 2.6 1H19 €1,755 M 2.2 2.3 1.9 2.0 1.8 1.9 2.0 1.8 664 772 1H18 9M18 FY18 1Q19 1H19 1H18 9M18 FY18 1Q19 1H19
Slide 14: Shareholder remuneration
7. STEADILY GROWING SHAREHOLDER REMUNERATION Shareholder remuneration Dividend per share evolution Total shareholder return (€ cents paid in the year after, CAGR) (not reinvesting dividends) +5% 4.41 World financial crisis 4.20 4.00 Share price Dividends 62% Steadily growing 3.85 3.65 10% dividend t
Slide 15: Share price performance
7. STEADILY GROWING SHAREHOLDER REMUNERATION Share price performance Clear discount vs. sum of the Parts valuation €1.28 Analysts average price target €1.83 NAV per share Strong overperformance vs market index in the last few years Note: Average Price Target Includes the last revised Price Target fr
Slide 16: Our Portfolio
IMPROVING LIFE Our Portfolio
Slide 17: Sonae MC
Leading player in the Portuguese food retail market, Sonae MC with benchmark profitability Turnover and underlying EBITDA €M, pre IFRS16 Leader in the Portuguese Food retail formats E-commerce food retail market • 41 hypermarkets (o.w. 22 anchored in • ~70% market share in Portugal high quality shop
Slide 18: Worten
Worten Iberian omnichannel electronics player with turnover over €1 bn Turnover and und EBITDA evolution €M, pre IFRS16 • Clear leader in the + 7.6% Portuguese market, both 1,018 1,095 offline and online, with Best-in-class Iberian benchmark performance omnichannel operator LfL + 5.6% and profitabil
Slide 19: Sonae Fashion
Sonae Fashion Portfolio of unique and competitive fashion brands Turnover and und EBITDA evolution €M, pre IFRS16 • +7.4% LfL sales growth 362 + 1.9% 369 in 1H19, outperforming c.400 stores, including 288 the market (+10% in the own stores and 109 LfL +1.9% 2Q) franchised stores, in +30 countries: •
Slide 20: ISRG
ISRG The 2nd Iberian sports retailer aiming to become the leader Turnover and und EBITDA evolution • The JV’s performance €M, pre IFRS161 since the merger has JV with JD sports and + 10.3% 603 been remarkable, Sprinter since January 2018 547 proving the merits of the transaction • Distinctive value
Slide 21: Sonae FS
Created in 2015, Sonae Financial Services is already a leading Sonae FS player in the Portuguese market Universo Card1 is top 3 in credit card payments in Portugal Turnover and underlying EBITDA evolution • More than 800k subscribers in a period of approximately 3 €M years (13% Market Share in payme
Slide 22: Sonae Sierra
Shopping malls with proven international benchmark quality and Sonae Sierra value creation through a capital recycling strategy More than €7 bn OMV portfolio of co-owned 39 More than 80 shopping shopping malls shopping malls in malls managed in Partnership with Grosvenor 8 countries1 14 countries €1
Slide 23: Sonae IM Investments
Aiming to build a portfolio of world class tech-based companies Sonae IM linked to retail, telecom and cybersecurity Portfolio Track record NAV since 2014 €217 M Investments 32 Companies1 +€108 M invested First cybersecurity investment Investments 2014 2016 2017 2018 2019 Divest. Partial exit w/ val
Slide 24: NOS
The leading player in the Portuguese telecoms and NOS entertainment market August 27th 2013: NOS strong operational FY18 Operating revenues In 1H19, Operating revenues ZON OPTIMUS was created trends are generating market increased 1.1% to €1,576 M, reached €782 M, +1.2% and EBITDA share gains in 201
Slide 25: Investor Presentation – Events and Contacts
PREVIOUS EVENTS UPCOMING EVENTS INVESTOR 2018 Jan 17th: London roadshow with Haitong 2019 Sept 5th - 6th: Caixabank BPI Iberian Conference PRESENTATION Feb 7th: Madrid roadshow Feb 8th: Santander Conference, Madrid Oct 10th - 11th: Capital Markets Days Nov 15th: Barclays European Retail Forum (Londo