Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Sonae — Investor Presentation (January 2017)
38 slides from Sonae Sgps Sa's investor presentation, January 2017
Slide 1: Investor Presentation January 2017
INVESTOR PRESENTATION January 2017
Slide 2: Profile
SONAE HOLDING Profile At SONAE, each day is a new beginning for new opportunities, new challenges and new triumphs SPRIAS
Slide 3: Our Mission and Our Way, Our Values
O1.Profile OUR MISSION AND OUR WAY OUR VALUES OUR MISSION To create long-term economic and social value, taking the benefits of progress and innovation to an ever-increasing number of people QUR WAY We are a multinational group with solid roots and a constant drive towards progress. Our culture, how
Slide 4: History
O1.Profile ~ 50' Ss ’ ’ , to 70's 80's 90's . + Launch of Sonae in the Capital Markets (1983) Capital +7 IPOs for: Particleboard, Food Retail, Tourism, + Acquisition of a controlli Markets Media, Robotics, Shopping Centres, electricity in Tafisa (wood panels) (1! and cooling (1987) M&A. Acquisition
Slide 5: History 2000s
O1.Profile HISTORY 00's 2007 to2009 Capital Markets M&A /Disposals Openings Holding Structure + Sonae Sierra delisting (2001) + Spin-off of Sonae Industria (2005) + Sonaecom takeover bid for PT and PT Multimédia (2006) 0 Bate rsp tee MDS (insurance company) and Cooper Gay (insurance broker) (2004) +
Slide 6: History 2013-2016
O1.Profile HISTORY sONAECOM 2013 and 2014 2015 and 2016 Capital Markets M&A /Disposals Openings Holding Structure Sonaecom launches a tender offer for the acquisition of a maximum of 24.16% of its share capital The level of acceptance (aus 62%, corresponding to aprox. 55 million Sonaecom shares Sona
Slide 7: Group Portfolio of Businesses with Leading Positions
SPRIAS O1.Profile GROUP PORTFOLIO OF BUSINESSES WITH LEADING POSITIONS STRUCTURE INEACH SECTOR ee Fn) mo witve Ih @uurGes ackos | nC)s => ta tm somoamy ) (comma (spore \( saten ome FSB) vere Ea] — SONAE [ \ SIERRA SS ] Food Specialised Retail Financial Investment. Shopping Centers Telco Retail Retai
Slide 8: Corporate Strategy
O1.Profile CORPORATE STRATEGY VALUE CREATION through Sonae'’s 3 strategic pillars Strengthen and leverage our key assets — and competencies We constantly strive to reinforce our strongest competitive positions and explore new business opportunities that leverage our exceptional capabilities and asse
Slide 9: Sonae's Strategic Pillars: Strengthen and Leverage Key Assets
O1.Profile SONAE’S STRATEGIC PILLARS Strengthen and leverage our key assets | and competencies OLOSAN Investment in Continente’s convenience/proximity network expansion, as long as it protects the competitive position, thus ensuring a leading profitable position in the food retail market (in Portuga
Slide 10: Sonae's Strategic Pillars: Drive International Expansion
O1.Profile SONAE’S STRATEGIC PILLARS Drive international expansion ParkLake was opened in September 1* and is the first Sierra's Shopping Centre development in Romania. It represents an investment of €180M and comprises over 200 stores in 70 thousand sqm. The results so far exceeded our best expecta
Slide 11: Sonae's Strategic Pillars: Diversify Business and Investment Approach
O1.Profile SONAE’S STRATEGIC PILLARS Diversify business and investment approach ZIPPY franchising model - 49 stores outside Portugal + A proven concept + Shopping Centre friendly +19 different countries “Successful operations: Latam, Middle East, and Central Europe Meu Super reaches 240 stores at th
Slide 12: Board of Directors
O1.Profile BOARD of DIRECTORS A good balance between Executive Directors (2 members) and Non-Executive Directors (7 members) all of which independent SPRIAS A multidisciplinar BoD 4 ‘| elected on April 2015* (1) Andrew Campbell - Well recognized professor with expertise (6) Lorraine Trainer- Experie
Slide 13: Group Senior Executives
O1.Profile GROUP SENIOR EXECUTIVES Since 2015 Sonae has been adjusting its internal organisation, making its business units more autonomous, with clear separated Executive Committees, thus enabling higher levels of specialization and focus SRA Responsible for each division of the 9 ¢ Group > (1) Ang
Slide 14: An Attractive Investment Opportunity
02 AN ATTRACTIVE INVESTMENT OPPORTUNITY
Slide 15: Sonae Holding Company
02. An attractive investment opportunity SONAE ASA HOLDING COMPANY 1. Enterprise Value 2. Invested Capital 3. Consolidated Turnover 4. Total EBITDA 5. Balance Sheet 6. A stable shareholder structure 7. Shareholder Remuneration 8. Share Price SRRIAS
Slide 16: Enterprise Value
02. An attractive investment opportunity 01. ENTERPRISE VALUE A balanced portfolio of businesses spanning multiple sectors €3,802 MEV (as of 9M16) SONAE’S PORTFOLIO DIVIDED BY EV Sonae’s EV split (as of 9M16) Sierra 13% Nos 15% i SPRIAS ASSUMPTIONS: Sonae MC: valuation based on sector's EV/EBITDA &
Slide 17: Invested Capital
02. An attractive investment opportunity 02. INVESTED CAPITAL €3,264 MIC (as of 9M16) Long-term target RolC > 11% SONAE’S PORTFOLIO DIVIDED BY IC Sonae’s IC split (as of 9M16) MC 16% Sierra 25% Worten ZZ 1% S&F 12% NOS 16% IM 3% RP 27% SPRIAS RolC evolution 8.7% 8.5% 9M14 2014 1015 1HIS 9M15 2015 1Q
Slide 18: Consolidated Turnover Increased by 6.7%
02. An attractive investment opportunity 03. CONSOLIDATED TURNOVER INCREASED BY 6.7% TURNOVER in 9M16 Turnover breakdown __ !"million euros (9M16) % Total Turnover IM RP 5% 2% ow 26% Mc a 68% i Sonae MC Hi Sonae RP i Sonae IM SPRIAS Sonae consolidated turnover stood at €3,882 M, increasing 6.7% when
Slide 19: Total EBITDA
Fe RR 02. An attractive investment opportunity 04. TOTAL EBITDA Total EBITDA (me) 9M15 MA 292 M16 301 EBITDA breakdown (9M1s) % Total EBITDA . NOS" Sierra 6% Th IM 3% MC 48% SPRIAS ~ EBITDA increased to €301M, mostly driven by: An increase of approx. €7M at Worten The Ippeci of MC investment in pric
Slide 20: Balance Sheet
SPRIAS 02. An attractive investment opportunity 05. BALANCE SHEET Refinancing needs for next 18 months already secured Maturity profile is currently above 4 years Average interest rate of outstanding debt continued to decrease and reached 1.4% on September 30* 2016 SIGNIFICANT DELEVERAGING MADE © PO
Slide 21: Balance Sheet: Appropriate Capital Structure
02. An attractive investment opportunity 05. BALANCE SHEET AN APPROPRIATE CAPITAL STRUCTURE In each business to support Activities and Investments CAPITAL STRUCTURE Retail Net Debt/ EBITDA Long-term target: <3.0 24 23 22 : 2.0 18 19 4g 20 16 QMl4 = 2014 «1015 1H15. MIS) 20151016. 1H16 M16 Retail Net
Slide 22: Stable Shareholder Structure
02. An attractive investment opportunity 06. STABLE SHAREHOLDER STRUCTURE Reference shareholder, EFANOR, a family holding company i. EURONEXT SHAREHOLDINGS Others 35.9%, Efanor 52.7% stat WG) 5.5% FB pp| 2.5% 3.4% SHARE CAPITAL AVERAGE DAILY 2,000 million VOLUME (3Mis) ~4.2 million shares SPRIAS FRE
Slide 23: Shareholder Remuneration
02. An attractive investment opportunity 07 SHAREHOLDER REMUNERATION Steadily growing dividend payer to maintain an adequate shareholders remmuneration STEADILY GROWING DIVIDEND 5B 5 cenis Dividends per share in 2015 +5.5% vs. 2014 +10.6% vs. 2013 5.5% Dividend Yield Considering Share Price (adjuste
Slide 24: Share Price
SPRIAS 02. An attractive investment opportunity 08. SHARE PRICE Significant discount vs. Sum of the Parts valuation Share price was particularly affected y the global financial crisis, but also by macro and financial problems in Portugal ~ ANALYSTS VALUATION l 2 5 Analysts average 83.3% discount € 0
Slide 25: Competitive Advantages of Such a Diversified Portfolio
02. An attractive investment opportunity COMPETITIVE ADVANTAGES OF SUCH A DIVERSIFIED PORTFOLIO uo ben) Leading market position in food retail market, with benchmark profitability . The telco operator with highest turnover growth in the market, and continuously improved profitability . Shopping mall
Slide 26: Food Retail: Food Formats
02. An attractive investment opportunity L FOOD LEADING MARKET POSITION IN FOOD RETAIL MARKET, RETAIL WITH BENCHMARK PROFITABILITY: FOOD FORMATS Continente Continente en, Continente <> 41 Hypers Hypers i) Modelo Bom Dia a] 130 Supers . +41 stores (25 are anchored with leading shopping 4130 stores, t
Slide 27: Food Retail: Competitive Advantages
02. An attractive investment opportunity FOOD RETAIL Considered over the last 13 years as one of the most trusted brands in Portugal by consumers (survey “Trusted brands” carried out by Reader's Digest) 1 LEADING MARKET POSITION IN FOOD RETAIL MARKET, WITH BENCHMARK PROFITABILITY: COMPETITIVE ADVANT
Slide 28: NOS
02. An attractive investment opportunity NOS August 27th 2013: ZON OPTIMUS was created soma 89.9%" | 50% | 7 ZOPT 52.15% | On May 162014, NOs NOS was launched, a single brand for all segments and for all services, replacing ZON OPTIMUS * Voting rights 2. THE TELCO OPERATOR WITH HIGHEST TURNOVER GROW
Slide 29: Sierra
02. An attractive investment opportunity SIERRA 50% JV with Grosvenor + Stakes in 45 Shopping Centres + Net Asset Value of -1.29 billion euros OMV breakdown 9M16 Romania 8% Portugal Italy Crs E 8% erman om Spain 10% Brazil 21% SBMASSIERRA AND SIERRA PURSUING ITS RECYCLING CAPITAL STRATEGY IN 9M16: +
Slide 30: Worten
02. An attractive investment opportunity WORTEN Aiming to build a leading Iberian omnichannel operation Strongly believing that: * There is value for Portugal in growing its Iberian presence (in Spain * Currently, the best solution for Spain is to further turnaround the operations 4. THE IBERIAN OMN
Slide 31: Sports & Fashion
02. An attractive investment opportunity S20eesSar SPORTS & FASHION OWN STORES: Sport Zone 121 MO 108 Zippy 57 Losan10 Salsa 67 Salsa LOSAN 5. FOCUS ON BUILDING COMPETENCIES TO REACH INTERESTING PROFITABILITY LEVELS IN S&F Sports and Fashion Turnover and Underlying EBITDA evolution 374 +28.3% The Sp
Slide 32: Real Estate Asset Monetisation
02. An attractive investment opportunity REAL ESTATE ASSET MONETISATION VALUE a0) value 1,314 (M16) million euros Assets W/out Income Logistics ofices ee NE 16% Contnente Bom Dia a Comtinente 46% Continente Modelo 29% Note: Information organised by anchor 6. CAPITAL GAIN ABOVE €150 M SALE AND LASEBA
Slide 33: Financial Services
02. An attractive investment opportunity FS THE RECENTLY CREATED BUSINESS UNITAIMED AT FOSTERING FINANCIAL SERVICES * Managed in partnership with MasterCard and BNP Paribas Personal Finance, S.A., which recognises onits balance sheet the credit granted, as well as the responsibility for risk managem
Slide 34: Key Messages
02. An attractive investment opportunity KEY MESSAGES SONAE A long living family holding company 1. A strong corporate culture with a clear mission and values in the DNA 2. Astable shareholder structure 3. Creating value through 3 transparent strategic pillars 4. Oriented by a multidisciplinary Boar
Slide 35: Recent Developments
03 RECENT DEVELOPMENTS
Slide 36: Healthy Nutrition: A Segment with Very High Growth Potential
03. Recent developments HEALTHY NUTRITION Western Europe A SEGMENT WITH A VERY HIGH GROWTH POTENTIAL Finland is the country with the highest healthy food consumption per capita Germany and UK are the markets with higher healthy food consumption Some players have already achieved a relevant size, bot
Slide 37: Two Relevant Steps in Healthy Food Business
03. Recent developments HEALTHY NUTRITION TWO RELEVANT STEPS IN HEALTHY FOOD BUSINESS ASEGMENT WITH A VERY HIGH GROWTH POTENTIAL Acquisition 0 ening of Go Well of the 1* supermarket December 2¥2016 specialised in healthy food Acquisition of a 51% stake * December 6th 2016 Go Well operates 22 healthy
Slide 38: Contacts
INVESTOR PRESENTATION January 2017 CONTACTS: Patricia Vieira Pinto Head of Investor Relations Tel. + 351 22 010 4794 www.sonae.pt SONAE is listed on the Euronext Stock Exchange. Information may also be accessed on Reuters under the symbol SONP.IN and on Bloomberg under the symbol SONPL SAFE HARBOUR