Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — FY2002 Earnings Presentation
41 slides from Sonae Sgps Sa's earnings presentation, 2003
Slide 1: Sonae SGPS Announcement
nanwnoce Z ANNOUNCEMENT SONAE SGPS, “OD A SONAE
Slide 2: Agenda
Agenda YEAR 2002 Financial Highlights Portfolio Management Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA SPDF MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STRUCTURE OUTLOOK FOR 2003
Slide 3: Financial Highlights
Financial Highlights Turnover Operating Cash-Flow Net Profits after (EBITDA) Minority Interests 6.618 * 55 6.386 6.276 649 677 * 604 2001 2002 -56 2001 2002 2001 2002 * At constant exchange rates * At constant exchange rates Total Assets Net Debt Gross Investment 8.281 1.509 7.968 3.497 3.294 744 20
Slide 4: Portfolio Management Highlights
Portfolio Management Highlights Focus on operating profitability More efficient use of capital employed Strengthen the financial structure of the businesses Modelo Continente share capital increase (100 M.€) SonaeCom share capital increase (45.25 M.€) Sonae Capital share capital increase (50 M.€) In
Slide 5: Business Portfolio
Business Portfolio SONAE SGPS 95.7% 75.5% 67% 82.8% 100% Sonae Modelo SonaeCom Sonae Indústria Continente Sonae Imobiliária Capital 50.01% S.I. PROPERTY S.I. DEVELOP. IMOCAPITAL * CHOICE CAR CONTACTO S.I. ASSETS PRAEDIUM TURISMO OPTIMUS INVICTA MATRIX SPDF ** TAFISA SPRED NOVIS SPEL MCH SDB SIR * GE
Slide 6: Highlights - Sonae Indústria
Highlights Sonae Indústria First full operational year after the investment cycle A year of operational improvement and more efficient use of capital employed Continued Restructuring / Reorganisation of operations Agreement with the Portuguese Government concerning Gescartão #6
Slide 7: Financial Highlights - Sonae Indústria
Financial Highlights Sonae Indústria Turnover Operating Cash-Flow Net Profits after (EBITDA) Minority Interests 1.502 1.480 1.526 * 183 * 2001 2002 173 153 -71 2001 2002 2001 2002 * At constant exchange rates * At constant exchange rates -82 Working Capital Net Debt Gross Investment 377 806 308 282
Slide 8: Highlights - Modelo Continente
Highlights Modelo Continente Public tender offer in March for the whole of the company’s share capital Strengthen the capital structure: Share capital increase of 100 M.€ Steady decrease in debt levels Brazil: Business affected by strong political instability and high interest rates Portugal: Increa
Slide 9: Financial Highlights - Modelo Continente
Financial Highlights Modelo Continente Gross Sales Operating Cash-Flow Net Profits after 4.412* (EBITDA) Minority Interests 4.308 4.069 333 130 296 100 2001 2002 2001 2002 2001 2002 * At constant exchange rates Portugal Brazil Net Debt/EBITDA 2.798 2.657 2,7 * 2,3 9,8% 1.651 1.614 9,5% 1.271 7,7% 5,
Slide 10: Highlights - Sonae Imobiliária
Highlights Sonae Imobiliária Opening of the first two green field shopping and leisure centres outside Portugal: Parque D. Pedro (Brazil) and Plaza Mayor (Spain) Purchase in partnership with ING Real Estate of 5 shopping and leisure centres in Spain: Max Center (Bilbao), Valle Real (Santander), La F
Slide 11: Financial Highlights - Sonae Imobiliária
Financial Highlights Sonae Imobiliária Operating Cash-Flow Net Profits after (EBITDA) Minority Interests 95,9 144,3 120,9 73,8 2001 2002 2001 2002 NAV 1.037 Value of Properties 934 attributable to Sonae Imobiliária 1.471 1.362 2001 2002 2001 2002 # 11 Values in M.€
Slide 12: Highlights - SonaeCom
Highlights SonaeCom Restructuring and rationalisation of the business portfolio Cost reduction programme Significant improvement in cash flow generated Resulting in: 8% growth in Turnover 100 M.€ increase in Adjusted EBITDA to 123 M.€ 79% improvement in Consolidated FCF from an outflow of 268 M.€ in
Slide 13: Operational Highlights - SonaeCom
Operational Highlights SonaeCom By the end of 2002 SonaeCom had 2.5 million customers, generated 4.5 billion minutes of voice, data and Internet traffic and 793 million euro of turnover TRAFFIC 2002 CUSTOMERS 2002 REVENUES 2002 Novis Novis 11% 14% Novis Clix 4% Clix 4,5 35% 2,5 793 5% billion millio
Slide 14: Financial Highlights - SonaeCom
Financial Highlights SonaeCom Turnover Operating Cash-Flow 731 793 (Adjusted EBITDA ) 123 22 2001 2002 2001 2002 Operating profitability was the main focus in 2002 and was obtained through business growth, productivity and efficiency gains, and portfolio rationalisation. Gross Investment Free Cash F
Slide 15: Highlights - Sonae Capital
Highlights Sonae Capital Tourism: Business was affected by local authority delays in providing detailed planning approval at Tróia and overall planning approval at Meia Praia in Lagos Reorganisation of the travel business where the partnership with Marsans was brought to an end and a new strategic p
Slide 16: Financial Highlights - Sonae Capital
Financial Highlights Sonae Capital Turnover Operating Cash-Flow Residential Property Others (EBITDA) 5% 335 11% Logistics 10% 244 17 Refrigeration Tourism 9% 35% 3 Construction and Engineering 2001 2002 2001 2002 30% Total Assets Net Debt 735 699 Others 26 24% Tourism 46% Residential Property 9% 200
Slide 17: Agenda
Agenda YEAR 2002 Financial Highlights Portfolio Management Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STRUCTURE OUTLOOK FOR 2003
Slide 18: Consolidated Profit and Loss
Consolidated Profit and Loss 2002 2001 Turnover 6,275.7 6,385.9 Operating Profit (EBIT) 218.9 226.5 Net Financial Charges (253.4) (190.5) Profit /(Loss) on ordinary activities (34.5) 36.1 Extraordinary profit / (loss) (26.4) 49.9 Associated companies 7.1 1.6 Profit / (Loss) before taxation (53.8) 87
Slide 19: Turnover
Turnover Slight fall of 1.7%. Increase of 3.6% at constant exchange rates 6.618 * 6.386 6.276 Wood Based 23% Panels Retail 56% Shopping Centres 4% Telecom . 12% Sonae Capital 5% and Holding 2001 2002 * At constant exchange rates # 19 Values in M.€
Slide 20: Operating Cash-Flow
Operating Cash-Flow Growth of 7.3% (12.1% at constant exchange rates) 677 * 649 Wood Based 27% 604 Panels Retail 45% Shopping 13% Centres Telecom. 14% Sonae Capital 1% and Holding 2001 2002 * At constant exchange rates # 20 Values in M.€
Slide 21: Net Profits/(Losses) before Minority Interests
Net Profits/(Losses) before Minority Interests The Net Loss before Minority Interests was 49 M.€ 30 98 (84) (20) (49) (73) Wood Retail Shopping Telecom. Sonae Capital Consolidated Based Centres and Holding Panels # 21 Values in M.€
Slide 22: Agenda
Agenda YEAR 2002 Financial Highlights Portfolio Management Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STRUCTURE OUTLOOK FOR 2003
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet 31 December 2002 2002 2001 Fixed Assets 5,256.5 5,464.2 Stocks 676.6 774.7 Debtors 831.8 1,060.3 Cash and short term investments 638.8 415.6 Deferrals 564.1 566.2 Total Assets 7,967.8 8,281.0 541.7 932.5 Shareholders’ Funds Minority Interests 854.1 932.0 Interest Bearing D
Slide 24: Total Assets
Total Assets 8.281 Shopping 7.968 Centres 13% Retail 27% Telecom. 18% Wood Based Sonae Capital Panels and Holding 806 30% 12% 836 1.865 1.396 2001 2002 Goodwill Shareholders´ Funds and Minority Interests # 24 Values in M.€
Slide 25: Consolidated Gross Investment
Consolidated Gross Investment Consolidated Gross Investment of 744 M.€ 1.509 -51% 744 106 121 304 152 61 2001 2001 Wood Based Retail Shopping Telecom. Sonae Capital Panels Centres and Holding # 25 Values in M.€
Slide 26: Net Debt
Net Debt Net debt of 3,294 M.€ -6% 3.497 3.294 631 687 517 463 996 2001 2002 Wood Based Retail Shopping Telecom. Sonae Capital Panels Centres and Holding # 26 Values in M.€
Slide 27: Consolidated Financial Structure
Consolidated Financial Structure To analyse Sonae’s debt position correctly it is not sufficient to simply look at the consolidated figures. The adequacy of the capital structure in each business of its portfolio can be summarised, as follows: Net Net Debt / Debt EBITDA EBITDA Sonae Indústria 631 17
Slide 28: Share Price Performance
Share Price Performance Sonae SGPS 140 130 Base = 100 120 110 100 90 80 PSI 20 70 60 50 Sonae SGPS 40 30 Source: Sonae SGPS; Euronext Lisbon # 28
Slide 29: Agenda
Agenda YEAR 2002 Financial Highlights Portfolio Management Highlights THE BUSINESS PORTFOLIO SUB-HOLDINGS SONAE INDÚSTRIA MODELO CONTINENTE SONAE IMOBILIÁRIA SONAECOM SONAE CAPITAL CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STRUCTURE OUTLOOK FOR 2003
Slide 30: Spin-off of the Forestry Based Businesses
Spin-off of the Forestry Based Businesses Main Free Float Main Shareholder Free Float Shareholder 56,72% 43,28% 56,72% 43,28% NEW COMPANY SONAE SGPS Sonae Modelo SonaeCom Sonae Indústria Continente Sonae SPDF Imobiliária Capital # 30
Slide 31: Spin-off of the Forestry Based Businesses: Reasons and Objectives
Spin-off of the Forestry Based Businesses Reasons and objectives Sonae Indústria is today a business in its own right with: significant size (the world number one producer of wood based panels) worldwide integrated presence and synergies a range of products focused on adding value to forestry Synerg
Slide 32: Organization of the Forestry Based Businesses
Organization of the Forestry Based Businesses Main Free Float Shareholder 56,72% 43,28% NEW COMPANY Sonae Indústria SPDF Chairman: BA Board of Directors: CMS(CEO); CBA(CFO); JAC(CTO); CS1; DDS1; AC2 ; AA2 ; GB2 ; PA2; SC2 Board of Directors: BA; ARP; CMS UK and SOUTH GESCARTÃO PORTUCEL GERMANY CANAD
Slide 33: Outlook for 2003 - Sonae Indústria
Outlook for 2003 Sonae Indústria Win market share where the potential exists Improve sales mix with higher added value products that will at the same time allow installed productive capacity utilisation to be optimised Efficiently manage intangible assets Consistently increase operating profitabilit
Slide 34: Outlook for 2003 - Pulp and Paper
Outlook for 2003 Pulp and Paper Involvement in the privatisation process of Portucel: A process that has taken too long without good reason... ... with successive changes to the privatisation model... ... resulting in a highly complex proposal End of the partnership with Suzano as per the original t
Slide 35: Outlook for 2003 - Modelo Continente
Outlook for 2003 Modelo Continente In Portugal, review and seek all business alternatives that will allow maximum advantage to be taken of existing expertise In Brazil consolidate the market leadership position in the Southern Region # 35
Slide 36: Outlook for 2003 - Sonae Imobiliária
Outlook for 2003 Sonae Imobiliária Continue to focus on the Shopping and Leisure Centre sector as developer, investor and manager Business activity will continue to be focused on markets where we are already operating: Portugal, Spain, Greece, Germany, Austria, Italy and Brazil. The company will con
Slide 37: Outlook for 2003 - SonaeCom
Outlook for 2003 SonaeCom Focus on cost reduction and working capital management New revenue initiatives Continued improvements in EBITDA, Free Cash Flow and Profitability Urgent need for an efficient regulatory framework for the fixed and Internet sectors that guarantees effective competition. High
Slide 38: Outlook for 2003 - Sonae Capital
Outlook for 2003 Sonae Capital Promote and develop existing businesses at a pace compatible with cash flow generated, taking advantage of possible opportunities arising from new partnership and disposals Tourism: With local authority detailed planning approval, develop the infrastructure and buildin
Slide 39: Outlook for 2003 - Strengthen the Balance Sheet
Outlook for 2003 Strengthen the Balance Sheet Focus on operating cash flow Better use of capital employed (increase in productivity and reduction in working capital) Disinvest from non strategic or excessively resource- intensive businesses Develop alternatives to strengthen the position in Portucel
Slide 40: Outlook for 2003
Outlook for 2003 Establish conditions for the sustainable development of businesses Promote the strengthening of Group competencies Create conditions that give professional satisfaction to staff so that they feel collectively responsible for wealth creation, to overcome difficulties and to uphold va
Slide 41: www.sonae.pt
This presentation is available at the official Sonae SGPS website www.sonae.pt