Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (September 2006)
47 slides from Sonae Sgps Sa's investor presentation, September 2006
Slide 1: Sonae SGPS September 2006
sonae sgps SEPTEMBER 2006 * * Data as of 30 June 2006 under International Financial Reporting Standards (IFRS)
Slide 2: The History of Sonae Over the Last 40 Years
SONAE SGPS THE HISTORY OF SONAE OVER THE LAST 40 YEARS ‘00 Manager of portfolio of businesses with international dimension. Focused ‘90 management on Focus and main core Turnover development of core businesses CAGR* = 17% businesses. Financial control of non strategic Parque D. Pedro (Brazil) and bu
Slide 3: Sonae Group - Current Position
SONAE SGPS SONAE GROUP - CURRENT POSITION Sonae SGPS manages a portfolio of diversified businesses by setting strategic guidelines and objectives, monitoring their performance, fostering synergies between them and identifying new business opportunities; This is done by developing a balanced portfoli
Slide 4: Business Portfolio
Continente Modelo Modelo Bonjour Worten Modalfa Sport Zone Retail Portugal Vobis Modelo MaxMat Continente (1) Software & Systems Integration 98.82% Food and Non Food Zippy SONAE SGPS Star SIERRA INVESTMENT SIERRA DEVELOPMENT Italy Spain Greece Portugal Germany Sierra Sonae SIERRA MANAGEMENT 50% Shop
Slide 5: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 6: Sonae Distribuição Guidelines
SONAE DISTRIBUIÇÃO GUIDELINES Modelo Continente is the market leader in Portugal in food retail, and has a leading position in various non food retail markets. Market leader in all operating markets, through market-share leadership, best practices and customer focus. VISION Expand its business front
Slide 7: Sonae Distribuição Guidelines Outlook
SONAE DISTRIBUIÇÃO GUIDELINES Market leadership: - Maximize benefit of existing store network - Significant expansion plan - Reinforcement of “value-for-money” positioning on food formats - Development of specialist profile for non food formats Best practices: - Increase operational efficiency - Inf
Slide 8: Modelo Continente Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE Food Retail Non-Food Retail Hypermarkets Consumer Elect. Computers Hypermarkets Sports Goods Kidswear Apparel DIY Supermarkets Pharmacies Travel Agencies #7
Slide 9: Market Trends - Portugal
SONAE DISTRIBUIÇÃO MARKET TRENDS - PORTUGAL GDP growth rate(1) Consumers confidence index 3,9 2000 2005 Euro zone -12 1,3 0,7 0,3 2000 -1,1 2005 -41 Portugal (1) percentage change on previous year Sqm’s change (UCDR’s)(2) (‘000) 332 Dec 2005 sales area : 1,557 Madeira 102 86 92 92 49 43 2000 2005 (3
Slide 10: Sonae Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Turnover (M. €) EBITDA Margin (% Net sales) 3,791 3,885 8.8% 8.6% 3,631 3,556 3,600 8.4% 8.4% 8.3% 3,490 7.8% 6.7% 6.3% 2,745 2,474 2,576 2,621 2,386 2,211 1,360 1,216 2000 2001 2002 2003 2004 2005 H1'06 2000 2001 2002 2003 2004 2005* H1'06 Portugal Brazil Sal
Slide 11: Sonae Sierra
sonae sierra
Slide 12: Sonae Sierra Guidelines
SONAE SIERRA GUIDELINES Sonae Sierra is the dominant leader in the Portuguese market, in Shopping Centre development, management and investment. VISION Best international Shopping Centre specialist. Increase shareholder value through developing, owning or co-owning MISSION and managing Shopping Cent
Slide 13: Sierra Shopping Centres
SONAE SIERRA SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 39 Shopping Centres, equal to 1.6 million m2 of GLA 17 in Portugal (733 thousand m2) 11 in Spain (478 thousand m2) 8 in Brazil (305 thousand m2) 2 in Italy (73 thousand m2) 1 in Greece (46 thousand m2) … manages… a total of 2.
Slide 14: Sierra Portugal - Shopping Centres
SONAE SIERRA PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov.03) – GLA: 18,556 m2 MaiaShopping (Nov.97) – GLA: 28,949 m2 Sonae Sierra (100%) Sonae Sierra (100%) Lima Retail Park (2007) – GLA: 10,900 m2 NorteShopping (Oct.98) – GLA: 72,053 m2 Sonae Sierra (50%) / Mil
Slide 15: Sierra Spain - Shopping Centres
SONAE SIERRA SPAIN - Shopping Centres in operation and under development Parque Principado (Apr.01) Valle Real (Nov.94) Oviedo - GLA: 74,760 m2 Santander – GLA: 47,826 m2 Sonae Sierra (25%) / Lar-Grosvenor 1 Sonae Sierra (50%)1 / ING Real Estate Group and Whitehall Fund (50%) Zubiarte (Nov.04) Bilba
Slide 16: Sierra Other Europe - Shopping Centres
SONAE SIERRA OTHER EUROPE - Shopping Centres in operation and under development Mediterranean Cosmos (Oct.05) Gli Orsi (2008) Thessalonica - GLA: 45,957 m2 Biella - GLA: 34,700 m2 Sierra Charagionis (39.9%) / Sonae Sierra (100%)1 Lamda Development (60.1%) Le Terrazze (Spring 2008) Galatsi Olympic Ha
Slide 17: Sierra Brazil - Shopping Centres
SONAE SIERRA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct.97) Brasília – GLA: 33,340 m2 Sierra Enplanta (5.2%)/ Others (94.8%) Shopping Penha (Oct.93/Oct.04 - expansion) S. Paulo – GLA: 29,913 m2 Sierra Enplanta (64.7%) / Others (35.3%) Shopping Franca (Oct.93) Fran
Slide 18: Sierra Consolidated Figures
SONAE SIERRA CONSOLIDATED FIGURES Million euro Net Profit EBITDA 249 126 219 108 96 98 149 140 74 127 74 121 55 57 73 63 2000 2001 2002 2003 2004 2005 H1'06 2000 2001 2002 2003 2004 2005 H1'06 Market Value of Investments NAV per Share (€) 4,454 4,096 41.72 38.90 3,341 2,868 32.60 2,561 2,691 2,498 2
Slide 19: Sierra Operational Indicators
SONAE SIERRA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management (geographical breakdown) 2,025 1,988 Brazil 15% 1,839 Greece 2% Portugal 1,564 46% 1,517 Italy 7% 2002 2003 2004 2005 H1'06 Spain Sales and Visits 30% 3,888 3,212 2,865 382 410 424 2003 2004 2005 Sales (million eur
Slide 20: Sonaecom
sonae com
Slide 21: Sonaecom Guidelines
SONAE COM GUIDELINES Sonaecom actively manages and controls a portfolio of companies comprising 3 main business divisions: Telecommunications (Optimus, Novis and Clix), Media (Publico) and Sofware & Systems Integration (Wedo, Bizdirect and Mainroad) Sonaecom’s ambition is to be the best Portuguese c
Slide 22: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% Software & Telco Media Systems Integration (1) Publico 69.24% 100% 100% We Do Consulting (100%) – Telecom Systems & Software Developer Mobile Fixed Internet Mainroad (57%) – Provider of Corporate IT Solutions Optimus Novis Clix Bizdirect (75%) – B2B Pl
Slide 23: Sonaecom Consolidated Figures
SONAE COM CONSOLIDATED FIGURES Million euro Turnover EBITDA 201 880 838 843 789 157 733 146 106 410 84 72 406 2001 2002 2003 2004 2005 H1'06 2001 2002 2003 2004 2005 H1'06 H1’05 H1’05 (55) Free Cash-Flow CAPEX 62 197 35 12 171 2001 2002 2003 2004 2005 H1'06 141 (15) 127 123 122 (55) (113) 65 2001 20
Slide 24: Sonaecom Operational Indicators
SONAE COM OPERATIONAL INDICATORS Sonaecom’s total customer base increased during the first half of 2006, growing by 4% to 2.7 million at the end of June 2006 (2.6 million at the end of 2005) and continued to build on the established growth platform for its telecoms business, with a clear focus on di
Slide 25: Optimus - Focus on Improving Growth
SONAE COM OPTIMUS – FOCUS ON IMPROVING GROWTH Optimus entered in the market 7 years ago, 10 years later than TMN and 6 years later than Vodafone. It is one of the most successful third operators in Europe with a market share of around 20%. Optimus’ strategy growth along three lines: - Increase of re
Slide 26: Sonaecom Fixed - Focus on Improving Profitability
SONAE COM SONAECOM FIXED – FOCUS ON IMPROVING PROFITABILITY Sonaecom Fixed leads altnets in its key market segments: SME and SoHo and is the second largest provider of wholesale traffic. Sonaecom Fixed core segments are SoHos and SMEs, with a clear focus on providing direct access solutions. Aggress
Slide 27: Público - Focus on Top Line Growth
SONAE COM PÚBLICO – FOCUS ON TOP LINE GROWTH Público is the 3rd Portuguese daily paper in terms of paid circulation. Pioneer in the development of “Associated Products”. Strategic content provider: protection against increased sector concentration. Tough market experience during 2006: - Tabloid news
Slide 28: S&SI - Focus on International Growth
SONAE COM S&SI – FOCUS ON INTERNATIONAL GROWTH The Software & Systems Integration (S&SI) division brings together leading specialists in telco systems integration. S&SI is the sixth largest IT/IS group in Portugal. International presence through WeDo (Telco IS). Major accounts in UK, Germany, Spain,
Slide 29: Sonae Capital
sonae capital
Slide 30: Sonae Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital aims to: Develop businesses that are: complementary to the activities of the other sub holdings, taking advantage of synergies within the Sonae Group able to take a leading role in their industries, growing outside the Group in their respective markets
Slide 31: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Insurance Tourism Real Estate Development Facility Brokerage and Seed and Risk Capital (Resorts & Hotels) and Engineering Services Management Risk Management # 30
Slide 32: Sonae Capital Consolidated Figures
SONAE CAPITAL CONSOLIDATED FIGURES Million euro Turnover Insurance 576 560 Brokerage and 526 662 Risk Management 479 461 626 3% 412553 Seed and Risk 261 232 Facility Capital Management 48% 16% 2000 2001 2002 2003 2004 2005 H1'06 Aggregated Figures Consolidated Figures EBITDA 44 41 Real Estate Develo
Slide 33: Sonae SGPS
sonae sgps
Slide 34: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro H1’06 H1’05* ∆% Turnover 1,999.1 1,872.7 +6.7 Value created on investment properties 71.4 29.1 - Other operational income 187.0 177.6 +5.3 Operational Cash Flow (EBITDA) 277.5 238.2 +16.5 Operational Profit (EBIT) 164.2 132.5 +23.9 Net Fin
Slide 35: Turnover
SONAE SGPS TURNOVER Million euro SECTOR BREAKDOWN 1.366 6,386 6,276 6,260 6,464 6,392 Retail 1.216 5,751 5,202 Shopping 71 Centres 65 4,213 ** 410 4,058 ** Telecom. 406 1,999 237 1,873*** Sonae Capital & Holding 261 1999 * 2000 2001 2002 2003 2004 2005 H1'06 (85) Eliminations POC IFRS (75) H1’05 * P
Slide 36: Operational Cash Flow (EBITDA)
SONAE SGPS OPERATIONAL CASH FLOW (EBITDA) Million euro SECTOR BREAKDOWN 938 948 85 Retail**** 81 649 637 744 ** Shopping 106 604 546 674 ** Centres 59 439 84 Telecom. 278 88 238*** 3 Sonae Capital & Holding 8 1999 * 2000 2001 2002 2003 2004 2005 H1'06 0 Eliminations POC IFRS 2 H1’05 * Pro-forma acco
Slide 37: Profit for the Period
SONAE SGPS PROFIT FOR THE PERIOD Million euro SECTOR BREAKDOWN 50 (57) 35 141 70 43 Retail Portugal Shopping Centres Telecom. Sonae Capital & Eliminations H1'06 Holding # 36
Slide 38: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 30.06.2006 31.12.2005 Investment Properties 1,486.7 1,357.4 Tangible/Intangible Fixed Assets 2,293.1 2,229.6 Goodwill 243.4 245.6 Other Non Current Assets 412.9 301.9 Stocks 489.4 460.5 Customers and Other Current Assets 597.2 788.7 Investments, Cas
Slide 39: Total Assets
SONAE SGPS TOTAL ASSETS Million euro 8,598 2,176 8,281 Retail 7,874 7,968 7,675 2,445 6,307 6,092 Shopping 1,664 5,925 Centres**** 1,563 1,216 Telecom. 1,182 1,192 Sonae Capital & Holding 1,486 1999 * 2000 2001 2002 2003 2004 2005 Jun'06 (156) Eliminations POC IFRS (369) 31 December 2005 * Pro-forma
Slide 40: Gross Investment as at December 2005
SONAE SGPS GROSS INVESTMENT AS AT 31 DECEMBER 2005 Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 42 880 118 Portugal Brazil 305 68% 6% 386 Rest of Europe 25% 29 Rest of the World 1% Wood Based Retail Shopping Telecom. Sonae Capital TOTAL Panels Centres and Holding # 39
Slide 41: Net Debt - June 2006
SONAE SGPS NET DEBT – 30 June 2006 Million euro SECTOR BREAKDOWN 431 Retail 2,822 196 Shopping 567 Centres*** 2,064 499 366 1,913 1,620 Telecom. 250 662 Sonae Capital & Holding 501 2004 2005 Jun'06 38 Eliminations 174 31 December 2005 # 40
Slide 42: Consolidated Financial Structure - Net Debt
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Million euro NET DEBT Million euro NET NETDEBT DEBT Million euro 4.500 POC IFRS 4.000 3.899 3.337 3.500 3.214 3.330 3.071 3.074 3.000 2.822 2.574 2.500 2.064 1.913 2.000 1.684 1.620 1.500 1.000 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q
Slide 43: Consolidated Financial Structure - Net Gearing
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE NET GEARING (Net Debt/Shareholders’ Funds + Minority Interests) 300% 282% After Goodwill 250% elimination against reserves 209% 200% 172% 171% 193% 149% 155% 150% 145% 127% 121% 145% 110% 100% Before Goodwill elimination 123% 125% against reserves 106% 50%
Slide 44: Consolidated Financial Structure - Debt by Business
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Million euro 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 Debt EBITDA (a) Net Debt / E
Slide 45: Share Performance
SONAE SGPS SHARE PERFORMANCE Up to 30 June 2006, the Sonae SGPS, SA share price decreased 1%, compared to an increase of 10% in the PSI-20 index. Since then, the Sonae SGPS, SA share price has already recovered around 14%. 10.9 million shares traded, on average, daily 135 PSI 20 130 Sonae SGPS 125 2
Slide 46: Sonae Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Continue to deliver operational improvements. Consolidate market leadership positions. Strategic businesses are stable and confident in their future performance. Continue the search for value enhancing opportunities in existing businesses as well as in new
Slide 47: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt