Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Santander Portuguese Conference 2008
32 slides from Sonae Sgps Sa's conference presentation, Apr 3, 2008
Slide 1: Santander – Portuguese Conference
Santander – Portuguese Conference 03 April 2008
Slide 2: Sonae: continuously delivering value to shareholders
Sonae: continuously delivering value to shareholders Business units: 2007 excellent performance Outlook
Slide 3: 2007 results confirmed our focus on profitable growth: Turnover
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Turnover (M€) Turnover by Business (M€) +9% +10% 4,627.7 4,240.1 3,385 3,091 +9% +8% 893 822 259 280 2006(P) 2007 Retail Shopping Telco High and increasing growth rate #2
Slide 4: 2007 results confirmed our focus on profitable growth: EBITDA
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… EBITDA (M€) EBITDA by Business (M€) +20% +18% 706 299 +5% 254 588 221 +3% 210 157 162 2006(P) 2007 Retail Shopping Telco Operational Cash Flow improved across all our business units #3
Slide 5: 2007 results confirmed our focus on profitable growth: Net Income
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Net Income-group NET Income by Business (M€) Share (M€) +36% +11% 284 300 271 +6% 209 160 169 37 -1 2006(P) 2007 Retail Shopping Telco Profits reflected the good operational performance #4
Slide 6: 2007 results confirmed our focus on profitable growth: Capex
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Capex (M€) Capex by Business (M€) 1,571 972 +106% 4x +103% 763 445 -7% 242 253 236 220 2006(P) 2007 Retail Shopping Telco Investment for growth accelerated #5
Slide 7: 2007 results confirmed our focus on profitable growth: Net Debt
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Net Debt (M€) Net Debt by Business (M€) +77% +27% 2,621 1,702 1,893 1,082 962 2.8x -8% 377 338 310 2006(P) 2007 Retail Shopping Telco Leverage increased… #6
Slide 8: 2007 results confirmed our focus on profitable growth: Financial Structure
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Financial Structure 7.7 Interest 6.2 7.0 6.1 5.6 cover 6.7 5.4 5.3 4.9 3.4 3.7 3.6 3.6 3.7 Net debt 3.2 2.9 to EBITDA 2.7 1.9 2.8 2005 1Q06 2Q06 3Q06 2006 1Q07 2Q07 3Q07 2007 …notwithstanding,
Slide 9: 2007 results confirmed our focus on profitable growth: Return on Equity
Sonae: continuously delivering value to shareholders 2007 results confirmed our focus on profitable growth… Return on Equity (%) +0,8 pp 22.0% 21.2% 2006 2007 Turning an investment for growth strategy into higher profitability #8
Slide 10: …once again endorsing our capacity to deliver superior shareholder value
Sonae: continuously delivering value to shareholders …once again endorsing our capacity to deliver superior shareholder value Annual Return Sonae SGPS vs Portuguese Market years PSI 20 TR 20% Sonae SGPS 1 43% 21% 5 51% 6% 10 9% 11% 15 25% 10% 21 20% Consistently providing above the average sharehold
Slide 11: Business units: 2007 excellent performance
Sonae: continuously delivering value to shareholders Business units: 2007 excellent performance Outlook
Slide 12: Sonaecom: Operational Highlights
Business units: 2007 excellent performance Sonaecom: Operational Highlights Mobile Customers EoP (´000) Focus on Broadband proving 292 2894 to be the right strategy 249 224 2602 815 623 2353 2192 Indirect 304,950 Direct 380 729 271 463 99,188 510,673 177,062 281,541 2005 2006 2007 93,861 2005 2006 2
Slide 13: Sonaecom: Turnover up by 9%
Business units: 2007 excellent performance Sonaecom:Turnover up by 9% Customer Rev. Service Rev. +9% Operator Rev. Turnover Equipment Sales 892.7 816 822.4 79.1 89.3 102 813.6 199.4 714 733 203.3 216 614.2 498 529.8 2005 2006 2007 # 12
Slide 14: Sonaecom: EBITDA up by 3%
Business units: 2007 excellent performance Sonaecom: EBITDA up by 3% EBITDA & EBITDA Margins 164 60.00% 162.0 162 +3% 50.00% 160 158 156.8 40.00% 156 30.00% 154 152.1 152 20.00% 150 18.6% 19.1% 18.1% 10.00% 148 146 0.00% 2005 2006 2007 EBITDA EBITDA Margin # 13
Slide 15: Sonae Sierra: Operational highlights
Business units: 2007 excellent performance Sonae Sierra: Operational highlights Nº. Asset in Operation GLA under Management (units) (million m2) 2007 47 2007 2.2 2006 40 +18% 2006 2.0 +9% Tenant Sales Rents - 100% (million €) (million €) 2007 4531 2007 339 2006 3846 +18% 2006 307 +11% # 14
Slide 16: Sonae Sierra: EBITDA excluding value created on investment properties
Business units: 2007 excellent performance Sonae Sierra: EBITDA excluding value created on investment properties +4% 156.2 150.3 125.7 107.6 95.5 98.1 76.2 62.8 36.5 18.7 11.9 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Values in million € # 15
Slide 17: Sonae Sierra: Net Asset Value
Business units: 2007 excellent performance Sonae Sierra: Net Asset Value +15% 1 713 1 490 1 265 * 1 037 1 098 1 060 934 150 752 643 379 399 948 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 * Capital Reduction: € 150 million Values in million € # 16
Slide 18: Sonae Sierra: Services’ activities valuation
Business units: 2007 excellent performance Sonae Sierra: Services’ activities valuation NOI 2007 2006 Developments 77 085 18 840 Asset Management 10 789 8 836 Property Management 6 889 6 573 Total 94 763 34 249 All values in thousand € # 17
Slide 19: Sonae Distribuição: Operational highlights
Business units: 2007 excellent performance Sonae Distribuição: Operational highlights Number of stores Sales area (‘000 m2) +30% +30% 646 709 496 545 2006 2007 2006 2007 Carrefour acquisition at 31 December 2007 (26 stores with 95.000m2 of sales area ) # 18
Slide 20: Sonae Distribuição: Turnover up by 10%
Business units: 2007 excellent performance Sonae Distribuição: Turnover up by 10% Food based universe Non food based universe Turnover (M€) Turnover (M€) +7% 2,368 2,209 + 3% +16% L4L 1 009 869 + 4% L4L 2006 2007 2006 2007 # 19
Slide 21: Sonae Distribuição: EBITDA up by 18%
Business units: 2007 excellent performance Sonae Distribuição: EBITDA up by 18% Non food Real estate assets Food based universe based universe with income EBITDA (M€) EBITDA (M€) EBITDA (M€) +10% 208 188 8,8% 8,5% t +33% t 71 54 7,1% 6,2% t 20 11 t 2006 2007 2006 2007 2006 2007 # 20
Slide 22: Outlook
Sonae: continuously delivering value to shareholders Business units: 2007 excellent performance Outlook
Slide 23: In 2008, Sonae will continue to focus on growth at all its businesses
Outlook In 2008, Sonae will continue to focus on growth at all its businesses Continue to push for a strong pace of organic growth Increase sales area by circa 60,000 m2 Be attentive to possible acquisition opportunities Retail Initiate the internationalization process: opening 4 Sportzone stores in
Slide 24: Sonaecom: Key Strategic Goals
Outlook Sonaecom: Key Strategic Goals Accelerate Increase mobile brand presence/investment Growth and Increase Further develop substitution, integrated and IMPROVE Market Share convergent offers / market approach CUSTOMER Accelerate investments in our Network MANAGEMENT Superior Customer Improve Cus
Slide 25: Sonaecom: Fibre Strategy
Outlook Sonaecom: Fibre Strategy A large scale investment 240 million Euro investment in 3 years 1 million homes passed Coverage of more than 25% of the Portuguese population Payback: 9 years Break-even: year 5 Seeking an adequate return on investment allowing for dilution of fixed costs v
Slide 26: Sonae Sierra: Yields
Outlook Sonae Sierra: Yields Yields are at historically low levels and the scope for valuation gains is becoming more limited The operating performance of well-located, well-designed, well-managed shopping centers will remain strong The limited scope for yield compression in mature markets will shif
Slide 27: Sonae Sierra: New Openings
Outlook Sonae Sierra: New Openings GLA (m2) OMV (m€) Investment (m€) 30 000 189 117 Italy 40 700 149 102 Spain 18 750 69 47 Greece 22 000 91 76 All values on a 100% basis. GLA (m2) 2008 Openings Existing % New GLA Italy 70 700 76 218 93% Spain 18 750 526 830 4% Greece 22 000 45 957 48% Sonae Sierra
Slide 28: Sonae Sierra: Identified Pipeline
Outlook Sonae Sierra: Identified Pipeline Future Evolution of GLA (thousand m2) 2 270 2 329 2 161 1 967 1 855 2007 2008 2009 2010 2011 GLA + 474 000 m2 Investment + 1.2 € billion (+ 26%) # 27
Slide 29: Sonae Sierra: Identified Pipeline
Outlook Sonae Sierra: Identified Pipeline OMV by Country 2007 Identified Pipeline 2011 Brazil 10% Portugal 2% Brazil 9% Brazil Romania 1% 5% Spain 12% Romania 5% Germany 9% Romania 22% Germany Greece 3% Italy 21% 11% OMV OMV OMV Italy 3% 6 146 + 1 634 = Greece 5% 7 780 Italy Spain 7% 21% Portugal Po
Slide 30: Sonae Distribuição: Guidances 2008
Outlook Sonae Distribuição: Guidances 2008 Turnover Above 20% turnover increase (1) EBITDA Sustain recurrent EBITDA margin (1) Capex Total capex of 300 M€ (1) sales excluding gas stations # 29
Slide 31: Sonae Distribuição: Investment plan 2008-2010
Outlook Sonae Distribuição: Investment plan 2008-2010 Sales area (´000 m2) Above 10% CAGR +40% in sales area 1 000 709 Non food 42% Total capex based 35% universe ~900 M€ 65% Food based 58% Maintain universe debt level 2007 2010 # 30
Slide 32: Santander – Portuguese Conference
Santander – Portuguese Conference 03 April 2008