Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Citi Group Small & Mid Cap Conference (October 2007)
33 slides from Sonae Sgps Sa's conference presentation, October 2007
Slide 1: Citi Group Small & Mid Cap Conference
CITI GROUP SMALL & MID CAP CONFERENCE 18 October
Slide 2: Agenda
AGENDA 1 Sonae SGPS: Who we are 2 Business units overview 3 Financial results 4 Challenges going forward #1
Slide 3: Sonae SGPS: Who we are
Sonae SGPS: Who we are
Slide 4: Corporate Profile
SONAE CORPORATE PROFILE Sonae SGPS controls and actively manages a portfolio of companies, by: setting strategic guidelines and objectives together with management teams; Mission monitoring and driving performance; supporting joint value creation initiatives; identifying new business opportunities.
Slide 5: Business Portfolio
SONAE BUSINESS PORTFOLIO SONAE SGPS 100% 100% 50% 50.1% 100% Sonae Distribuiç Distribuição Sonae Sierra Sonaec Sonaecom Sonae Capital FOOD & NON FOOD SHOPPING CENTRES TELECOMMUNICATIONS SERVICES RETAIL Market leader Complementary Market leader Leading integrated businesses to the in food retail and
Slide 6: Holding as a Value Enhancer
SONAE HOLDING AS A VALUE ENHANCER Cooperation with sub-holdings in definition of strategy and goals; Capital allocation among sub-holdings and new business opportunities; Proactive and continuous search of M&A and corporate development opportunities; Strong Sonae Brand as an umbrella to sub-holdings
Slide 7: Track Record
SONAE TRACK RECORD Total shareholder return: years 1 34% 46% 11% 5 23% 8% No capital calls since 2000; 10 10% Spin off Sonae Indústria (2005); 9% 15 24% Spin off Sonae Capital (2008); Consistently delivering above 9% average shareholder return for 20 19% more than 20 years PSI 20 Sonae Reference dat
Slide 8: Track Record
SONAE TRACK RECORD Long term Flexibility Entrepreneurship perspective Acquisitions of Tafisa and Joint-venture approach: Intrinsic to the Sonae Culture Glunz; Promodés; and sponsored by the Group Grosvenor; Chairman; Expansion to Brazil (retail, France Télécom. wood industry and Shopping Continuous
Slide 9: Business units overview
Business units overview
Slide 10: Sonae
sonae Ble ii li ferTe
Slide 11: Sonae Distribuição Business Portfolio
SONAE BUSINESS PORTFOLIO SONAE DISTRIBUIÇÃO Food Retail Non- Non-Food Retail Consumer Elect. Computers Hypermarkets Hypermarkets Sports Goods Apparel DIY Supermarkets Travel Agencies + 4 format start- start-ups over the last 4 years # 10
Slide 12: Strategic Guidelines
SONAE STRATEGIC GUIDELINES Growth, both organic and through acquisition opportunities; Develop and fine-tune recently launched concepts; Growth Launch new concepts in Portugal, leveraging on all synergies available; Expansion of current businesses to new geographical areas (Spanish market). Efficien
Slide 13: Sonae Distribuição Key Facts
] SONAE DISTRIBUIGAO No.1 retailer in Portugal (with food and non food retail) KEY FACTS 3.1 Bn€e 2006 turnover (205,000 articles in portfolio) ~25,000 employees ~ 1.1 Bn€ Real Estate Book Value (77% of own sales area generating 80% of sales) ~565,000 sqm sales area (in 517 stores) 254 Mn€ 2006 EBIT
Slide 14: Corporate Developments
SONAE CORPORATE DEVELOPMENTS 3Q07:Acquisition of Carrefour’s hypermarket operations in Portugal (subject to approval by the competition authority). Strengthen leadership in the Portuguese food retail market; Immediate increase installed sales area by 17%; Modern retail market share increase of 4pp (
Slide 15: Sonae
sonae
Slide 16: Sonae Sierra Business Portfolio
SONAE BUSINESS PORTFOLIO SONAE SIERRA Shopping Centres Sierra development Sierra investment Sierra management Sierra Brazil Responsible for Owns Sonae Sierra’s Responsible for day to Similar business development of assets – shopping day management of structure in Brazil; shopping centres; centres an
Slide 17: Strategic Guidelines
SONAE STRATEGIC GUIDELINES Increase shareholder value through developing, owning or co-owning and Growth managing Shopping Centres; Be the best international Shopping Centre specialist International expansion Expand presence to new geographical areas. Reinforce presence on a specific number of marke
Slide 18: Sonae Sierra Key Facts
SONAE KEY FACTS PORTUGAL SPAIN 12 BRAZIL % )* !! $ + 14 13 !+ GREECE ITALY # # . 5 ! " # $ # ,$ ' 6 5 ( % & $ ) * % ()% $ # - GERMANY ' ( * % ' ( ) * % ()% ) ROMANIA ()% + $ , - $ # . - / 0- . 0- / - 1 2 0 - ( /, + $ - 1 2 30- ( 3- ( - 4 ( / - # 17
Slide 19: Corporate Developments
SONAE CORPORATE DEVELOPMENTS Sierra Investments acquired first property in Romania (River Plaza Mall); Sierra Investments acquired, in a 50/50 partnership, the shopping centre Modelo Albufeira and Continente Portimão (Algarve, Portugal); Acquisitions Sierra Brazil acquired 5% of shopping Tivoli (S.
Slide 20: Sonae
sonae
Slide 21: Sonaecom Business Portfolio
SONAE BUSINESS PORTFOLIO SONAECOM 100% 100% 99% 100% Telco Mobile Mobile Telco Fixed Media SSI (1) SSI (1) #3 mobile Operator; Leading altnet Reference newspaper Information system operator in Portugal; in Portugal; and Technology Mobile communications products provider; in Portugal: traditional Voi
Slide 22: Strategic Guidelines
SONAE STRATEGIC GUIDELINES Extension of addressable market: Mobile-fixed convergence; wireless internet Growth access; Expand network coverage and capacity: full scale UMTS and HSDPA network;. Organic Increase direct access broadband services; Lead innovation in the broadband market; Improve custome
Slide 23: Sonaecom Key Facts
SONAE KEY FACTS SONAECOM OPTIMUS FIXED MEDIA SSI 20% MS 9.8% MS 12.5% MS #1 worldwide at end 1H07, with at the end of 1H07, with of paid circulation at end 2.7 million subscribers 337K direct services 1Q07, ranking third in the player market in Revenue Assurance +10% 81.9% 14.0% MS 36 Active custome
Slide 24: Corporate Developments
SONAE CORPORATE DEVELOPMENTS Sonaecom Fixed 2Q07: Acquisition of Oni’s residential and SOHO customer base; Acquisition of Tele2 Portugal Strengthen growth in Direct Access and dilution of fixed costs; Opportunity to up-sell: Indirect to Direct; Low-end 2Play to higher value offers; IPTV Direct servi
Slide 25: Sonae
sonae
Slide 26: Sonae Capital Business Portfolio
SONAE # BUSINESS PORTFOLIO SONAE CAPITAL ! "CAPITAL Resorts development Engineering, Services Insurance Brokerage Seed and Risk Capital and Hotels Real Estate and Risk Management Troia resort project; Civil and public works Insurance brokerage; Shipping company; construction; Fitness: 10 health Rein
Slide 27: Strategic Guidelines
SONAE # STRATEGIC GUIDELINES Restructuring Business portfolio revision and focus; Implementation of organizational structure, Complete Troia Resort and leverage on accumulated know-how to implement new resort real estate development projects; Develop luxury residential real estate projects; Growth I
Slide 28: Financial results
Financial results
Slide 29: Sonae Turnover
SONAE TURNOVER Million euro Contribution to consolidated 1,495 Retail 6,276 6,260 6,464 6,392 1,366 +6.5 Shopping 80 Centres 71 4,384 413 Telecom. +6.9 410 2,137 228 Sonae Capital 4,117* 232 1,999 Holding and 8 Others 5 2002 2003 2004 2005 2006 1H07 (81) Eliminations POC IFRS (85) 1H06 * Excluding t
Slide 30: Operational Cash Flow (EBITDA)
SONAE OPERATIONAL CASH FLOW (EBITDA) Million euro Contribution to consolidated 116 Retail 938 948 85 +12.4 Shopping 131 Centres 649 106 637 599 78 Telecom. +20.1 84 334 14 Sonae Capital 533* 6 278 (3) Holding and Others (3) 2002 2003 2004 2005 2006 1H07 (2) POC Eliminations IFRS 1H06 * Excluding the
Slide 31: Net Debt
SONAE NET DEBT Million euro 30 June 2007 586 Retail 377 2,822 Shopping 722 +15.4 Centres 533 2,380 284 2,063 Telecom. 337 103 1,620 Sonae Capital 1,913 * 101 Holding and 613 Others 621 72 2004 2005 2006 1H07 Eliminations 94 31 December 2006 Net Debt/ Debt/Annualized EBITDA Net Gearing (Net Debt/ShFu
Slide 32: Challenges going forward
Challenges going forward
Slide 33: Strategic Priorities
SONAE STRATEGIC PRIORITIES Prepare and execute spin off of Sonae Capital; Implement new corporate centre structure; Focus on accelerating growth in three core activities: challenge and support ambitious organic growth strategies, driven by extending current businesses frontiers and leveraging innova
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