Sonaecom Sgps Sa · EURONEXT:SNC
Sonaecom Sgps Sa — SonaeCom — FY2002 Earnings Presentation
25 slides from Sonaecom Sgps Sa's earnings presentation, Apr 22, 2003
Slide 1: SonaeCom Change to IAS Full Year 2002 Accounts Restated
SonaeCom Change to IAS Full Year 2002 Accounts Restated 22 April 2003
Slide 2: Why now?
Why now? — SonaeCom has chosen to move to International Accounting Standards (IAS) as of 1Q03, ahead of the current EU agenda for quoted companies (2005). — SonaeCom feels that the move to IAS constitutes an opportunity to provide the investment community with clearer internationally comparable fina
Slide 3: General IAS Adjustments that affect SonaeCom's Accounts
General IAS Adjustments that affect SonaeCom’s Accounts.
Slide 4: Deferred SACs
Deferred SACs POC • Under POC all Subscriber Acquisition Costs (SACs) were deferred to the balance sheet (advertising, commissions and handset subsidies); • The resulting deferred SAC assets were written back to the P&L as OPEX over an average period of 3 years at decreasing rates, based on real ret
Slide 5: Intangible Assets
Intangible Assets • Start-up costs, certain internal costs (own works) and consultancy costs were capitalised and POC booked as intangible assets on the Balance Sheet; • The intangible asset generated was amortised over 3 years. • Start-up costs are recorded as Opex; IAS • Capitalised costs from pre
Slide 6: Tangible Assets
Tangible Assets • Tangible assets were booked at acquisition cost and depreciated over their useful life. POC • The standard treatment is also to carry assets at cost and depreciate them over their useful life. IAS • Alternatively, certain tangible assets may be adjusted to fair value. • Asset reval
Slide 7: Goodwill
Goodwill • Goodwill was registered as an asset and amortised over 10 years; POC • In accordance with Sonae SGPS policy, as of 1 January 2001 Net Goodwill had been written-off against reserves. • In adopting IAS, SonaeCom has reversed this policy by writing back Net Goodwill as an asset IAS which wil
Slide 8: Extraordinary Results
Extraordinary Results • Extraordinary results such as : POC • gains / losses on the sale of fixed assets • prior year adjustments • extraordinary depreciation and provisions were registered as Extraordinary Results below EBITDA. • Extraordinary items are considered to be income or expenses that aris
Slide 9: Others
Others • SonaeCom has adjusted its calculation of EBITDA to reflect the reclassification of provisions Provisions above the line; previously these had been shown below EBITDA. Profit and Loss Balance Sheet Impact • EBITDA dilutive (-28 mn eu) • No impact • Net profit neutral • SonaeCom has been prud
Slide 10: Conclusions
Conclusions The change to IAS has the following main impacts on SonaeCom’s 2002 accounts: — Provides clearer and internationally comparable financial information: — Eliminates complications arising from SAC deferrals and subsequent write-back. — Enables the use of a single internationally recognizab
Slide 11: SonaeCom Consolidated Accounts 2002 - IAS
SonaeCom Consolidated Accounts 2002 - IAS
Slide 12: SonaeCom Pro-Forma FY 2002 B/S and P&L - IAS
SonaeCom “Pro-Forma” FY 2002 B/S and P&L - IAS SONAE.COM, S.G.P.S., S.A. AND SUBSIDIARIES SONAE.COM, S.G.P.S., S.A. AND SUBSIDIARIES PRO-FORMA CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2002 AND 2001 CONSOLIDATED BY NATURE PROFIT AND LOSS ACCOUNT (Amounts expressed in Euro) FOR THE PERIOD ENDED 31 DE
Slide 13: SonaeCom – Main impacts of change to IAS
SonaeCom – Main impacts of change to IAS Values in k€ Total EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income Consolidated 2002 accounts Funds SAC deferral POC 583.302 94.496 122.718 113.979 (74.536 ) Write-off SACs prior years (31Dec2001) (232.724 ) No Deferred costs (94.217 ) (94.217
Slide 14: SonaeCom FY 2002 accounts IAS
SonaeCom FY 2002 accounts IAS 2002 Consolidated financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 792.652 788.946 (3.706) - Service Revenues 713.953 710.247 (3.706) - Corrections from previous periods. Full consolidation of Investimento Directo. Opex 654.768 606.
Slide 15: Stand-alone accounts
Stand-alone accounts - Optimus - Novis - Clix - Publico - S&SI
Slide 16: Optimus 2002 accounts in IAS
Optimus 2002 accounts 2002 in IAS Optimus financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 612.090 607.590 (4.500) - Service Revenues 570.035 565.535 (4.500) - Corrections from previous periods. Opex 466.579 411.444 (55.135) No SAC (excluding handsets) deferral
Slide 17: Optimus 2002 - Main Impact to accounts
Optimus 2002 - Main Impact to accounts Values in k€ EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income Funds Optimus 2002 accounts SAC deferrals POC 418.666 117.533 143.155 136.129 (17.293 ) Write-off SACs prior years (31Dec2001) (215.175 ) No Deferred costs (85.101 ) (85.101 ) (85.101 )
Slide 18: Novis 2002 accounts IAS
Novis 2002 accounts IAS 2002 Novis stand alone financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 156.996 156.596 (400) - Service Revenues 140.304 139.904 (400) - Corrections from previous periods. Opex 164.668 162.033 (2.635) No SAC deferral or cost capitalizatio
Slide 19: Novis 2002 - Main impacts to accounts
Novis 2002 - Main impacts to accounts Values in k€ EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income Funds Novis 2002 accounts SAC deferrals POC 66.753 (20.674 ) (17.153 ) (18.438 ) (77.646 ) Write-off SACs prior years (31Dec2001) (14.071 ) No Deferred costs (5.962 ) (5.962 ) (5.962 ) N
Slide 20: Clix 2002 accounts in IAS
Clix 2002 accounts in 2002 IAS Clix stand alone financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 35.696 35.698 2 + Service Revenues 35.275 35.277 2 + Corrections from previous periods. Opex 39.330 40.696 1.366 - EBITDA (4.014) (6.125) (2.111) - Positive net impa
Slide 21: Clix 2002 - Main Impact to accounts
Clix 2002 - Main Impact to accounts Values in k€ EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income Funds Clix 2002 accounts SAC deferrals POC 15.898 (4.014 ) (4.935 ) (5.388 ) (4.360 ) Write-off SACs prior years (31Dec2001) (3.478 ) No Deferred costs (3.155 ) (3.155 ) (3.155 ) No Deferr
Slide 22: Publico 2002 accounts in IAS
Publico 2002 accounts in 2002 IAS Público stand alone financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 41.071 41.071 Service Revenues 18.168 18.168 Opex 34.357 35.105 748 - EBITDA 1.696 (484) (2.180) - Impact of not capitalizing costs, inclusion of most extraord
Slide 23: Publico 2002 - Main Impact to accounts
Publico 2002 - Main Impact to accounts Values in k€ EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income Funds Público 2002 accounts SAC deferrals POC 1.197 1.696 1.696 1.696 (1.260 ) Write-off SACs prior years (31Dec2001) No Deferred costs No Deferred costs written-back Write-off Net Inta
Slide 24: S&SI 2002 accounts in IAS
S&SI 2002 accounts in 2002 IAS S&SI consolidated financial highlights Impact on Comments POC IAS Change Profit and Loss EBITDA Turnover 46.273 46.233 (40) - Service Revenues 46.273 46.233 (40) - Invoice corrections from previous periods. Opex 41.608 41.733 125 - EBITDA 6.046 6.085 39 + Positive net
Slide 25: S&SI 2002 - Main Impact to accounts
S&SI 2002 - Main Impact to accounts Values in k€ Total EBITDA Shareholders' EBITDA eliminating Cash EBITDA Net income S&SI 2002 consolidated accounts Funds SAC deferrals POC 6.559 6.046 6.046 6.046 3.282 Write-off Intangibles prior years (31Dec2001) (4.252 ) Intangible assets recorded as OPEX (276 )