Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2001)
56 slides from Sonae Sgps Sa's investor presentation, September 2001
Slide 1: Sonae SGPS September 2001
sonae sgps SEPTEMBER 2001 www.sonae.pt
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 92.0% 70.1% 51.2% 79.2% 100% 100% Sonae Sonae Sonae Sonae Com Indústria Distribuição Imobiliária Sonae Sonae Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Forestry Non Food Retail (development, communica
Slide 3: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Emerging Businesses Growth Businesses Mature Businesses Options for potential future development High growth businesses Mature businesses with with potential for strong profit
Slide 4: Portfolio Configuration: Sonae Distribuição (Retail)
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE DISTRIBUIÇÃO (RETAIL) SONAE also aims to foster the dynamics of growth within each business by stimulating the development of similarly balanced portfolios within each sector Horizon 3 Horizon 2 Horizon 1 B2C Portugal Food Retail São Paulo Specialise
Slide 5: Current Sectorial Strategy
SONAE SGPS CURRENT SECTORIAL STRATEGY To concentrate resources on businesses with the highest value creation potential and where SONAE has or can achieve competitive leadership Wood Based Panels . Complete restructuring in France and Germany by end 2001 . Consolidate high growth / high profitability
Slide 6: Value Creation by Sonae 1986-2001
SONAE SGPS VALUE CREATION BY SONAE 1986 - 2001 Total Return for Shareholders Market Capitalization Sonae SGPS PSI 30 (Euro millions) 4,764 7.000 6.577 6.000 5.143 5.000 3.924 4.000 3.721 3.303 3.000 2.682 2.041 2.000 926 894 1.163 1.000 648 702 BASIS=100 531 421 0 86 87 88 89 90 91 92 93 94 95 96 97
Slide 7: Prospective Capital Employed 2001-2006 by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2001 - 2006 by Sector ∆ CE ( ) C.A.G.R. 4.326 6.765 (2001-2006) • 9% C.A.G.R. in capital Tourism 3% 5% 222 ( + 23%) employed 10% 13% Telecoms 447 ( + 15%) • Strong increase in exposure Wood Based to Shopping Centres
Slide 8: Prospective Capital Employed 2001-2006 by Region
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2001 - 2006 by Region 4.326 6.765 ∆ CE ( ) C.A.G.R. (2001-2006) Rest fo the World 4% 3% • Strong increase in exposure Brazil 22% 20% 373 ( + 7%) to other EU countries Other Europe 20% 29% 1,086 ( + 18%) • Decrease o
Slide 9: Consolidated Results for the 1st Half 2001
SONAE SGPS CONSOLIDATED RESULTS Euro millions FOR THE 1ST HALF 2001 1H 00 1H 01 ∆ Turnover 2,702.0 3,061.0 +13.3% • An increase of 13.3% in Turnover (67.9% in Operating profit (EBIT) 59.4 63.4 +6.7% Shopping Centres, 39.7% in Net financial charges (71.8) (82.9) +15.5% Telecommunications, 20.8% in Wo
Slide 10: Turnover 1st Half 2001
SONAE SGPS TURNOVER – 1ST HALF 2001 Euro millions CONTRIBUTION BY SECTOR AND BY GEOGRAPHY Retailing 5,751 58% 5,202 Brazil Portugal 25% 56% 3,075 2,585 Shopping 3,061 2,255 2,702 Centres 4% Rest of Europe Telecoms 16% 10% Others Wood Rest of the 3% Based World 1996 1997 1998 * 1999 * 2000 1H 2001 Pa
Slide 11: Operating Profit 1st Half 2001
SONAE SGPS OPERATING PROFIT – 1ST HALF 2001 Euro millions CONTRIBUTION BY SECTOR 23 (34) Brazil 26 (4) (7) 63 Portugal 55 5 Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 11
Slide 12: EBITDA 1st Half 2001
SONAE SGPS EBITDA – 1ST HALF 2001 Euro millions CONTRIBUTION BY SECTOR 17 (1) (5) 246 31 Brazil 48 Portugal 85 70 Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 12
Slide 13: Consolidated Financial Structure
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Borrowings Net Gearing Interest Cover (Euro million) 3,071 3,173 2,851 3,7x 172% 175% 3,6x 2,577 159% 2,428 3,1x 3,0x 2,148 2,5x 121% 124 % 2,3x 98% 93% 83% 1Q 1H 3Q 4Q 1Q 1H 1Q 1H 3Q 4Q 1Q 1H 1Q 1H 3Q 4Q 1Q 1H 2000 2000 2000 2000 2001 2001 2000 2000 2
Slide 14: Sonae Indústria
& ) SONAE INDUSTRIA sonae Whaveleksnaate:
Slide 15: Sonae Indústria Business Portfolio
Euroresinas 100% Poliface SIR Resoflex 100% Tafiber Tafisa Espanha Taiber SONAE INDÚSTRIA 100% Tafisa France 98% Glunz 100% BUSINESS PORTFOLIO 91,23% Tafisa UK TAFISA SONAE INDUSTRIA 60% Tafisa Canada 63% Tafisa Brasil 100% Tafisa South Ifloma Africa # 15
Slide 16: Indústria Sales 1st Half 2001
SONAE INDÚSTRIA SALES – 1ST HALF 2001 By Product By Market Rest of the World Plywood Others 8% 9% 1% Rest of Europe Germany Hardboard 11% 18% 3% Surfaced 32% MDF 24% North America France 10% 19% South America OSB 5% 2% Particle Board Iberia 30% UK 22% 7% Leading world manufacturers of Wood Based Pan
Slide 17: Indústria EBITDA Margin – Iberia and Rest of Europe
SONAE INDÚSTRIA EBITDA MARGIN – IBERIA AND REST OF EUROPE Iberia France 17% 16% 17% 15% 15% 15% 5% 4% 2% 0,4% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 -2% -1% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 UK Germany 11% 7% 9% 5% 4% 5% 3% 2% 1% -2% -3% -2% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 1Q 00 2Q 00 3Q 00 4Q 00
Slide 18: Indústria EBITDA Margin – Other Countries
SONAE INDÚSTRIA EBITDA MARGIN – OTHER COUNTRIES Canada Brazil 48% 44% 40% 35% 32% 32% 32% 29% 25% 19% 20% 13% 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 South Africa 27% 19% 9% 4Q 00 1Q 01 2Q 01 # 18
Slide 19: Indústria Restructuring & Expansion
SONAE INDÚSTRIA RESTRUCTURING & EXPANSION Closures in 2001 Openings in 2001 . UK - EDB (March 2001) . Spain - Linares (Particle Board – 450.000 m3) – July 2001 . France - Tarnaise Labruguière (April 2001) - Cuellar (Sawmill – 90.000 m3) – February 2001 . France - Ussel (Flooring – 6.400.000 m3) – Ja
Slide 20: Indústria Restructuring and Expansion
SONAE INDÚSTRIA RESTRUCTURING AND EXPANSION . Complete restructuring of production base in France and Germany by end 2001 Northern Europe . Expand capacity of high growth products: Flooring, OSB . Develop UK market position backed by new capacity brought on stream 1H 2000 . Consolidate market (30% o
Slide 21: Sonae Distribuição
sonae [elisisaneluirercre
Slide 22: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO SONAE DISTRIBUIÇÃO 100% 88,15% 100% Modelo SONAE Modelo DISTRIB. Continente BRASIL Continente Food Retail Portugal Food Retail Brasil Non-Food Retail BIG Continente Modalfa Cândia (S.Paulo) Modelo Worten Mercadorama (Paraná) Modelo Bonjour Max Mat (50%) Nacional
Slide 23: Distribuição Current Position – 1st Half 2001
SONAE DISTRIBUIÇÃO CURRENT POSITION – 1ST HALF 2001 Food Retail Portugal Food Retail Brazil Non Food Retail Portugal High medium-term growth Rapidly maturing market Fragmented market potential Eur 1,017 * 106 gross sales Eur 839 * 106 gross sales Eur 163 * 106 gross sales 6 st 6 st (EUR 951 * 10 gro
Slide 24: Distribuição Business Portfolio – 1999
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1999 Modalfa 1999 high Worten high Continente Modelo medium S. Catarina Profitability medium RGS (Brazil) Paraná Vobis S. Paulo (Brazil) Bonjour Max Mat low Sport Zone low low defying high Market share # 24
Slide 25: Distribuição Business Portfolio – 2002
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 2002 Modalfa Continente 2002 high high Worten S. Catarina Modelo Paraná S. Paulo (Brazil) RGS (Brazil) medium medium Profitability New state Bonjour Max Mat in Brazil Vobis Sport Zone e-commerce low low low defying high Market share # 25
Slide 26: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO Food Non Food FORMATS: FORMATS: ! Hyper ! Home Appliances ! Computer products ! Mini-Hyper ! Apparel ! Construction ! Supers ! Sport goods materials Portugal 50% 8% Leadership in a mature 35% 10% Synergic growth market 25% 31% FORMATS: ! Hyper ! Supers Gross Sal
Slide 27: Distribuição Portugal – Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET worten worten worten 1,5 x 2,9 x 3,0 x 3,1 x 4,3 x worten worten worten worten 32% 22% 11% 10% 10% 7% worten Sonae JM Intermarché Carrefour Auchan Lidl and Minipreço “UCDR” universe, 1H2001 figures # 27
Slide 28: Distribuição Portugal – Portfolio 1st Half 2001
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 1ST HALF 2001 1H 2001 Gross Sales: 1,200 M. Euro Sales Area sq.m: 383.000 m2 Nr stores: 224 Main formats Stores Sq.m (000) Gross sales 1H 01* (At 10 Sept. 2001) Continente Hypermarkets 13 127 499 Modelo Mini-Hypermarkets 60 136 485 Modelo Bonjour Supermarkets
Slide 29: Distribuição Brazil – Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL National Ranking (ABRAS - TOP 5) " Total Area (‘000 km2) 8,514 " Population (‘000) 169,590 97 98 99 00 Gross Sales " GDP (b EUR) 600 2 2 2 1 5,3 CBD " per capita GDP (EUR) 3,540 1 1 1 2 5,2 Carrefour 3 3 4 3 1,6 Bompreço 9 5 3 4 1,6 SDB 4 4 5 5 1,4 Se
Slide 30: Distribuição Brazil – Portfolio 1st Half 2001
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 1ST HALF 2001 1H 2001 Gross Sales: 839 M. Euro (1,616 mn R$) Sales Area sq.m: 430.000 m2 Nr stores:171 Main formats Stores Sq.m (000) Gross sales 1H 01* (At 10 Sept. 2001) São Paulo BIG Hypermarkets (1) 16 96 164 Paraná BIG Hypermarkets 9 52 96 Mercadorama Super
Slide 31: Continuous Investment in the Base Market
SONAE DISTRIBUIÇÃO CONTINUOUS INVESTMENT IN THE BASE MARKET Total sq.m +90.000 900.000 +60.000 750.000 492.000 Brazil 402.000 +150.000 sqm [ + 20 % ] Portugal 408.000 348.000 2000 Portugal Brazil 2001 Planned Expansion 2001 # 31
Slide 32: Distribuição EBITDA / EBIT Performance
SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro millions EBITDA 105 199 168 34 155 63 4Q 74 4Q Portugal 58 3Q 34 3Q Brazil 48 29 29 42 19 2Q 2Q 2Q 2Q 36 1Q 37 1Q 18 19 1Q 1Q 1998 1999 2000 2001 1998 1999 2000 2001 EBIT 134 44 109 100 48 20 4Q 4Q 29 Portugal 42 Brazil 3Q 15 18 11 3Q 2Q 32 25 2Q 2Q
Slide 33: Distribuição Strategic Guidelines
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Context Strategic guidelines . Sector consolidation . Continuous investment in the base market . Pro-active stance in the concentration movements in the Iberian Peninsula and Latin America . Consumer focus . Reinforce value proposal and operational efficiency
Slide 34: Business Strategy – Value Creation
SONAE DISTRIBUIÇÃO BUSINESS SRATEGY – VALUE CREATION GROWTH OPERATIONAL EFFICIENCY PORTUGAL Supply chain integration " consolidation of market share through hyper & mini-hyper formats Category management " development of neighourhood and - ECR partnership more convenience formats - own labels - spac
Slide 35: Sonae Imobiliária
sonae Miaaleleiitclate
Slide 36: Imobiliária Business Portfolio
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe CascaiShopping1 (63)2 Centro Colombo1 (120)2 Parque Principado (25%) Shopping Penha (14%) (70)2 - Spain Dortmund MTC – CoimbraShopping (2
Slide 37: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Number GLA ( ‘000 m2) Shopping Centres in operation Portugal * 12 551 Brazil 5 109 Spain 1 70 18 730 Shopping Centres under development Portugal 1 20 Spain 3 86 Greece 1 60 Brazil 1 105 ** 5 271 Shopping Centres under management Portugal 792 Spain 141 Brazil 109 1,
Slide 38: Imobiliária Development and Investment
SONAE IMOBILIÁRIA DEVELOPMENT AND INVESTMENT Equity GLA Gross Investment Opening 2 9 Stake (000 m ) (EUR x 10 ) Plaza Mayor 75% 28 49,5 Spring 2002 (Malaga – Spain) Avenida M40 (Madrid – Spain) 60% 41 56,5 Spring 2003 Aegean Park (Athens – Greece) 50% 60 152,0 Spring 2004 Dortmund MTC (Dortmund – Ge
Slide 39: Imobiliária Shopping Centre Performance
SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (thousand sq. m) Average Monthly Sales per sq.m in 1H 01 (EUR) Colombo 120 Colombo 399 NorteShopping 72 NorteShopping 359 CascaiShopping 63 CascaiShopping 406 GaiaShopping 57 GaiaShopping 248 Vasco da Gama 48 Vasco da Gama 388 Algarve
Slide 40: Sales Growth 1H 00/1H 01
Colombo 3% NorteShopping 15% SONAE IMOBILIÁRIA CascaiShopping 14% GaiaShopping 5% MaiaShopping 11% CoimbraShopping 9% SALES GROWTH 1H 00/1H 01 GuimarãeShopping 43% Viacatarina -1% Vasco da Gama 10% # 40
Slide 41: Sonae.com
& ) SONAE.COM
Slide 42: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 45.89% 56.67% 100% 100% Mobile Fixed Data Multimédia SonaeCom and IT and Internet Ventures Optimus Novis Publico JVs & Alliances: Publico.pt Modelo.com (JV Sonae Retail) (25%) Clix (56.7%) BizDirect (Digital Marketplace JV) 20.00% 43.33% 43.33% Miau.pt (45%)
Slide 43: Optimus – Subscriber Growth
SONAE COM OPTIMUS – SUBSCRIBER GROWTH Optimus subscribers, EOP (000’s) 1650 1511 1410 1153 At the end of June 2001 Optimus had 1.65 1002 918 million customers. 82% were pre-paid 817 subscribers. 683 564 Mobile penetration in Portugal stood at 75.6% Source: Operators 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 3Q
Slide 44: Optimus – Market Share
SONAE COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) 3.456 3.754 4.933 5.193 5.765 6.716 6.965 7.561 Optimus aims to achieve more than its 46% 45% 45% 45% 45% 44% 45% 44% natural share of net adds to guarantee continued market share growth. In just 3 years of operation, Optimus has ac
Slide 45: Optimus – ARPU Evolution
SONAE COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 40,0 36,0 34,6 34,2 34,2 33,8 33,3 31,8 33,9 31,2 31,4 33,3 32,1 32,0 31,0 31,9 32,0 30,4 29,5 29,2 30,2 30,0 29,7 29,0 28,0 28,7 28,5 29,1 28,2 27,4 24,0 20,0 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Optimus Telecel TMN
Slide 46: Novis – Network Roll-out
SONAE COM NOVIS – NETWORK ROLL-OUT Fibre Backbone Kms June 01 Extension 674 Fibre Pairs Installed 1.018 MAN Kms (Lisbon+Porto) June 01 Fibre Cable Installed 57 Fibre Pairs Installed 1.666 SDH Links extension 114 FWA June 01 Nr. Base Stations: - Installed 21 - Ready for Service 20 Coverage (sqkm) 483
Slide 47: Novis – Total Active Customers and Traffic
SONAE COM NOVIS – TOTAL ACTIVE CUSTOMERS AND TRAFFIC Indirect Access (EoP) Direct Access (EoP) Traffic data (millions minutes) 347 64.000 3.216 450 600 322 1.932 56.000 14.401 400 250 500 842 15.137 350 48.000 13.496 300 220 400 40.000 250 32.000 300 200 169 544 489 24.000 48.978 42.337 150 200 36.1
Slide 48: Matrix – Internet and Multimedia
SONAE COM MATRIX – INTERNET and MULTIMEDIA Pageviews per month (millions) Unique visitors (thousands) Clix Subscribers, EOP (000’s) 1.000 60,0 879 900 900 55,0 800 759 50,0 800 12 221 266 700 45,0 700 641 13 170 40,0 600 600 515 35,0 500 116 500 30,0 12 430 70 25,0 12 400 66 400 44 299 20,0 7 39 619
Slide 49: Sonaecom Financial Progress
SONAE COM FINANCIAL PROGRESS Euro millions Turnover – Stand alone Accounts Optimus Novis Clix and Publico 146 23 134 12 127 130 10 10 111 10 94 8 13 11 12 7 8 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 EBITDA Eliminating SAC deferral – Stand
Slide 50: Sonaecom Financial Progress – CAPEX
SONAE COM FINANCIAL PROGRESS Euro millions CAPEX (excl. capitalised costs) Optimus Novis Matrix 131 * 11 11 8 5 2,4 4 2,1 32 26 3 1,5 21 25 19 0,5 0,1 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 * UMTS License – 100 Million Euro # 50
Slide 51: Sonae Turismo
an TURISMO sonae hiuulals pale
Slide 52: Turismo Business Portfolio
SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotel Management Resort Leisure Travel Management Fitness & Development & Sports Porto Palácio Troia Resort Entertainment (Fun Center) Business travel Aqualuz Lagos Properties Health Club Leisure tr
Slide 53: Turismo Business Areas
SONAE TURISMO BUSINESS AREAS To be the leader of tourism industry in Portugal: Having as core business the development of «tourism– Corporate Travelling real estate» resorts at an international scale, integrating all the key skills of related business, which Leisure Travelling provide a number of co
Slide 54: Turismo Investment Projects
SONAE TURISMO INVESTMENT PROJECTS Tróia Resort - Setúbal . Mission: Develop a tourism platform in the Tróia Peninsula, benefiting and capitalizing on its environmental, natural and cultural resources Palmares Resort – Lagos, Algarve . Mission: Develop a golf and real estate platform . Reconditioning
Slide 55: Sonae Capital
, ! SONAE CAPITAL sonae |(@=) ®)he=)
Slide 56: Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Spred Spinveste Choice Car Invicta Capitais Privados Joint -Ventures Construction, Car Hire Transport & Risk Capital Real Estate & Retailing & Services & Engineering ba vidros (49%) Contacto (100%) Finlog (50%) Star Transportes Portucel (29,2%) Selfrio