Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Sonae — Investor Presentation (March 2018)
42 slides from Sonae Sgps Sa's investor presentation, March 2018
Slide 1: Investor Presentation March 2018
INVESTOR PRESENTATION March 2018
Slide 2: Profile
SONAE HOLDING Profile At Sonae, each day is a new beginning for new opportunities, new challenges and new triumphs SPRIAS
Slide 3: Our Mission and Our Way
O1.Profile OUR MISSION AND OUR WAY SONAE AND CAPITAL MARKETS OUR MISSION To create long-term economic and social value, taking the benefits of progress and innovation to an ever-increasing number of people OUR WAY We are a multinational group with solid roots anda constant drive towards progress. Ou
Slide 4: Our Values
O1.Profile OUR VALUES TRUST AND INTEGRITY We are committed to creating economic value in the long term, built on sustainable relationships with all our stakeholders. We establish these relationships based on principles of honesty, uprightness and transparency PEOPLE AT THE CENTRE OF OUR SUCCESS Our
Slide 5: History
O1.Profile HISTORY 50's to 70's 80's 90's Capital Markets M&A /Disposals Openings Holding Operations + Launch of Sonae in the Capital Markets (1983) +7 IPOs for: Particleboard, Food Retail, Tourism, Media, Robotics, Shopping Centres, electricity and cooling (1987) eee + Acquisition of Star (travel a
Slide 6: History
O1.Profile HISTORY 00's 2010 to 2012 2007 to2009 Capital Markets M&A /Disposals Openings Holding Operations +Sonae Sierra delisting (2001) + Spin-off of Sonae Industria (5 005) + Sonaecom takeover bid for PT and PT Multimédia (2006) 0 Raters ttee MDS (insurance company) and Cooper Gay (insurance bro
Slide 7: History
O1.Profile HISTORY sONAECOM 2013 and 2014 2015 to2017 | OLOSAN + Sonaecom launches a tender offer for the acquisition of a maximum of 24.16% of its share capital. The level of acceptance reaches 62%, corresponding to aprox. 55 million Sonaecom shares (2014) Capital Markets + Merger between Zon and O
Slide 8: Portfolio of Businesses with Leading Positions
. SPM O1.Profile PORTFOLIO OF BUSINESSES WITH LEADING POSITIONS GROUP IN EACH SECTOR STRUCTURE 50% 23.4% RETAIL REAL FOOD ELETRONICS — SPORTS& FASHION RETAIL INVESTMENT FINANCIAL Suet DEVELOPER, TELCO RETAIL RETAIL RETAIL PROPERTIES MANAGEMENT SERVICES OWNER AND MANAGER FULLY CONSOLIDATED EQUITYCONS
Slide 9: Portfolio of Businesses with Leading Positions
O1.Profile PORTFOLIO OF BUSINESSES WITH LEADING POSITIONS GROUP IN EACH SECTOR STRUCTURE note? Drwelly AGGIE mdi autf ell @ txProbely (ba) 3k D><€PLY eile WOES fi (060) OMETRIA box] » 4 os A. BERG S2O5T Inovretall SiY|FSAGE PARKLAKE conminenr worten iccan. a @coromso continents mobile OLOSAN Salsa E
Slide 10: Corporate Strategy
O1.Profile CORPORATE STRATEGY VALUE CREATION through Sonae's 3 strategic pillars Salsa Mig PARKLAKE Strengthen and leverage our key assets and competencies Reinforcing our strongest competitive positions is a key condition for our long term sustainability. It is the stepping stone for our growth str
Slide 11: Sonae's Strategic Pillars: Strengthen and Leverage Key Assets
O1.Profile SONAE’S STRATEGIC PILLARS Strengthen and leverage our key assets and competencies Investment in Continente’s convenience/proximity network expansion, as long as it protects the competitive position, thus ensuring a leading profitable position in the food retail market (in Portugal): durin
Slide 12: Sonae's Strategic Pillars: Drive International Expansion
O1.Profile SONAE’S STRATEGIC PILLARS Drive international expansion Sonae Sierra and Central Control begun construction works on the Jardin Plaza Cucuta in Colombia (opening plan for the end of 2018): total investment of € 52M anda gross leasable area of 43,000 m? Wholesale and Franchising Sonae reta
Slide 13: Sonae's Strategic Pillars: Diversify Business Models
O1.Profile SONAE’S STRATEGIC PILLARS Diversify business models and investment approach peeermeny between Sport Zone, JUSports and JD Sprinter Creation of the 2nd biggest Iberian Sports Retailer. This partnership aggregates the group's store formats JD, Size?, Sport Zone and Sprinter, has an estimate
Slide 14: Board of Directors
O1.Profile BOARD of DIRECTORS A good balance between Executive Directors (2 members) and Non-Executive Directors (7 members) all of which independent A multidisciplinar BoD a ‘| (from left to right) ") Tsega Gebreyes— Expertise in finance and strategy across different sectors and geographic areas. F
Slide 15: Group Senior Executives
O1.Profile GROUP SENIOR EXECUTIVES Since 2015 Sonae has been adjusting its internal organisation, making its business units more autonomous, with clear separated Executive Committees, thus enabling higher levels of specialization and focus Responsible for each division of the Group (from left to rig
Slide 16: An Attractive Investment Opportunity
02 AN ATTRACTIVE INVESTMENT OPPORTUNITY
Slide 17: Sonae as a Holding Company
02. An attractive investment opportunity SONAE ASA HOLDING COMPANY 1. Enterprise Value 2. Invested Capital 3. Consolidated Turnover 4. Total EBITDA 5. Balance Sheet 6. A stable shareholder structure 7. Shareholder Remuneration 8. Share Price SRRIAS
Slide 18: Enterprise Value
02. An attractive investment opportunity 01. ENTERPRISE VALUE A balanced portfolio of businesses spanning multiple sectors €5,202 MEV €3,988 M NAV (as of FY17) SONAE’S PORTFOLIO DIVIDED BY EV Sonae’s EV split (as of FY17) Sierra 14% MC NOS 32% 13% MM (= 2% RP 17% Worten S&F 15% 8% SPRIAS ASSUMPTIONS
Slide 19: Invested Capital
02. An attractive investment opportunity 02. INVESTED CAPITAL €3,248 MIC (as of FY17) Long-term target RolC 11% SONAE’S PORTFOLIO DIVIDED BY IC Sonae’s IC split RolC | (as of FY17) evolution 20% 21% on _ Worten a 12% oo 3% ane Sierra ornee 18% S&F 11% m KK / SPRIAS FYI4 FyIS FYI 5% Maxmat P 1% 27% —
Slide 20: Consolidated Turnover
SPRIAS 02. An attractive investment opportunity 03. a CONSOLIDATED TURNOVER REACHED € 5,710 M TURNOVER IN FY17 Hnmilon ures +71% 7 Sonae consolidated Turnover breakdown | (FY17) % Total Turnover turnover increased by 71% In FY17, benefiting from the positive performance of the all businesses im RPMa
Slide 21: Total EBITDA
02. An attractive investment opportunity 04. TOTAL EBITDA EBITDA breakdown (FY17) % Total EBITDA — ygs- Sierra’ 5% * oe . GH 1% S Maxmat AS 2% Sports & = Fashion Worten 5% 8% EBITDA REACHED€396 M IN FY17 SPRIAS EBITDA decreased y.o.y driven by the positive impact, last year, of non-recurrent items,
Slide 22: Balance Sheet
SPRIAS 02. An attractive investment opportunity 05. BALANCE SHEET Refinancing needs for next 18 months already secured Maturity profile is currently slighty above 4 years Average interest rate of outstanding debt continued to decrease and reached 1.3% in 4Q17 SIGNIFICANT DELEVERAGING MADE ® POSSIBLE
Slide 23: Balance Sheet: Appropriate Capital Structure
SPRIAS 02. An attractive investment opportunity 05. BALANCE SHEET AN APPROPRIATE CAPITAL STRUCTURE In each business to support Activities and Investments ° CAPITAL STRUCTURE Retail Net Debt/ EBITDA NOS Net Debt/EBITDA Long-term target: <3.0 Long-term target: 2.0 26 250, ' j 1: 19 ; 2 +; qg ; 19 a. H
Slide 24: Stable Shareholder Structure
02. An attractive investment opportunity 06. STABLE SHAREHOLDER STRUCTURE Reference shareholder, EFANOR, a family holding company i» EURONEXT SHAREHOLDING STRUCTURE Others 33.1% Efanor 52.7% 25% gy Equi unger // | Magallanes Ai 2.0% BPI Sonae 3.7% Management 08% SHARE CAPITAL AVERAGE DAILY VOLUME 2,
Slide 25: Shareholder Remuneration
SPRIAS 02. An attractive investment opportunity 07 SHAREHOLDER REMUNERATION Steadily growing dividend payer to maintain an adequate shareholders remmuneration 7. STEADILY GROWING DIVIDEND Dividend per share evolution . cents (in € cents) dividend per share to be proposed 3.85 4.00 atthe GoM 315331)
Slide 26: Share Price
SPRIAS 02. An attractive investment opportunity 08. a) Some discount vs. 1 5 9G Analysts average 24% discount Sum of the Parts £€ 0 price target” when compared with share price if valuation as of 22.05.2018 (€1.12) Share price performance Share price was ‘ particulary affected 2 y the global financi
Slide 27: Competitive Advantages of Such a Diversified Portfolio
02. An attractive investment opportunity COMPETITIVE ADVANTAGES OF SUCH A DIVERSIFIED PORTFOLIO 1. 2. 3. 4. 5. 6 7. 8 Leading market position in food retail market, with benchmark profitability The telco operator with highest turnover growth in the market, and continuously improved profitability Sho
Slide 28: Leading Market Position in Food Retail: Food Formats
02. An attractive investment opportunity MC 4] Hupers 131 Supers 96 Bom Dia 295 Meu Super 222 Well's 1 LEADING MARKET POSITION IN FOOD RETAIL MARKET, WITH BENCHMARK PROFITABILITY: FOOD FORMATS Continente Hypers -41 stores (25 are anchored with leading shopping centres) «Average 7.1 thous. sqm (total
Slide 29: Food Retail: Competitive Advantages
02. An attractive investment opportunity MC Considered over the last 13 years as one of the most trusted brands in Portugal by consumers (survey “Trusted brands” carried out by Reader's Digest) ~ 1 LEADING MARKET POSITION IN FOOD RETAIL MARKET, WITH BENCHMARK PROFITABILITY: COMPETITIVE ADVANTAGES Le
Slide 30: NOS
02. An attractive investment opportunity N S" A 7 NOS August 27th 2013: ZON OPTIMUS was created soma 89.9%" | 50% | 7 ZOPT 52.15% | On May 162014, NOs NOS was launched, a single brand for all segments and for all services, replacing ZON OPTIMUS * Voting rights 2. THE TELCO OPERATOR WITH HIGHEST TURN
Slide 31: Sonae Sierra
02. An attractive investment opportunity SOMASSIERRA SIERRA 50% JV with Grosvenor IN FY17: + Stakes in 47 Shopping Centres + Occupancy rate = 96.0% AND SIERRA PURSUING ITS RECYCLING CAPITAL STRATEGY : NAV INREV €1,432 M (+1% vs + Tenant sales increased by 78% y.o.y. in Europe and increased aA 2016)
Slide 32: Worten
02. An attractive investment opportunity WORTEN Aiming to build a leading Iberian omnichannel operation Strongly believing that: * There is value for Portugal in growing its Iberian presence (in Spain * Currently, the best solution for Spain is to further turnaround the operations 4. THE IBERIAN OMN
Slide 33: Sports & Fashion
02. An attractive investment opportunity 5. SPORTS FOCUS ON BUILDING COMPETENCIES TO REACH INTERESTING & FASHION PROFITABILITY LEVELS IN S&F Turnover and Underlying EBITDA evolution (€M) OWN STORES: 589 Sport Zone 138 527 +16.8% M0108 om Zippy 58 —— Losan10 Salsa 78 The S&F underlying EBITDA improve
Slide 34: Sonae RP: Net Asset Value and Sale & Leaseback
02. An attractive investment opportunity RP NET ASSET VALUE ) 0 3 (FY17) million euros GROSS BOOK VALUE 1, 2 6 6 (Fvl7) million euros Assets W/out Others ine Logistics & Offices W 16% Continente a Continente 43% Continente Modelo 29% Note: Information organisedby anchor 6. CAPITAL GAIN ABOVE €150 M
Slide 35: Sonae IM: Tech Corporate Venturing Arm
02. An attractive investment opportunity IM Aims to build a robust portfolio of world class tech-based companies linked to retail, telco and cybersecurity leveraging on the strong expertise in the core businesses of Sonae. 7. THE TECH CORPORATE VENTURING ARM OF SONAE GROUP A PORTFOLIO COMPOSED BY OP
Slide 36: Financial Services
02. An attractive investment opportunity FS THE RECENTLY CREATED BUSINESS UNITAIMED AT FOSTERING FINANCIAL SERVICES * Managed in partnership with MasterCard and BNP Paribas Personal Finance, S.A., which recognises onits balance sheet the credit granted, as well as the responsibility for risk managem
Slide 37: Key Messages
02. An attractive investment opportunity KEY MESSAGES SONAE A long-living family controlled company - Sustainability - Ethics - Performance onm A strong corporate culture with a clear mission and values in the DNA A stable shareholder structure . Creating value through 3 transparent strategic pillar
Slide 38: Recent Developments
03 RECENT DEVELOPMENTS
Slide 39: Creation of the #2 Iberian Sports Retail Group
03. Recent developments SOuesesearF SPORTS CREATION OF THE #2 IBERIAN SPORTS RETAIL AND FASHION GROUP- Iberian Sports Retail Group COMBINATION OF: OPERATION TOTALLY ALIGNED WITH SONAE'S STRATEGIC PILLARS 5 SPORT ZON E MoU signed on March 92017 Completion on January 31s 2018 ¢ JD SPORTS ¢ JD SPRINTER
Slide 40: Healthy Nutrition
03. Recent developments HEALTHY NUTRITION Western Europe A SEGMENT WITH A VERY HIGH GROWTH POTENTIAL Finland is the country with the highest healthy food consumption per capita Germany and UK are the markets with higher healthy food consumption Some players have already achieved a relevant size, bot
Slide 41: Health and Wellness: Dental and Aesthetic Medicine Clinics
03. Recent developments HEALTH AND WELLNESS DENTAL AND AESTHETIC MEDICINE CLINICS A NEW STEP TAKEN IN THE SEGMENT OF HEALTH AND WELLNESS 1st Dr. Well's clinic in Combo Shopping Centre, in Lisbon (May 2017) 2nd Dr. Well's clinic in Gaia Shopping, in Great Porto area (Oct. 2017) 3rd Dr. Well’s clinic
Slide 42: Contacts
INVESTOR PRESENTATION March 2018 CONTACTS: Patricia Vieira Pinto Head of Investor Relations Tel: + 351 22 O10 4794 www.sonae.pt Sonae is listed on the Euronext Stock Exchange. Information may also be accessed on Reuters under the symbolSONP.INand on Bloombergunder the symbol SONPL PREVIOUS EVENTS 20