Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (October 2003)
97 slides from Sonae Sgps Sa's investor presentation, October 2003
Slide 1: Sonae SGPS
sonae sgps OCTOBER 2003 * www.sonae.pt * Data as of 30 June 2003
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 95.87% 100% 75.68% (1) 67.04% 82.79% 100% Sonae Modelo SonaeCom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Food Retail Shopping Centres Telecommunications Services (5) Products Non Food Retail Packaging Pulp&Paper S. I. PROPERTY S. I. DEV
Slide 3: Sonae SGPS Vision and Mission
SONAE SGPS VISION AND MISSION 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. Each business is run by a fully dedicated management team
Slide 4: Sonae SGPS Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain U.K. France Germany Greece Italy Austria South America Africa Brazil South Africa Gabon #4
Slide 5: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Horizon 3: New businesses Horizon 2: Growth businesses Options for potential Horizon 1: future development Mature businesses High growth businesses with potential for strong pr
Slide 6: Current Strategy by Sector
SONAE SGPS CURRENT STRATEGY BY SECTOR To concentrate resources on businesses with the highest value creation potential and where SONAE has or can achieve competitive leadership . Improve sales mix (higher added value products) Wood Based Products . Optimise use of installed production capacity . Inc
Slide 7: Strategic Priorities
SONAE SGPS STRATEGIC PRIORITIES Focus on operating profitability More efficient use of capital employed Reduction of working capital needs Use of lighter capital structures Strengthen the financial structure of the businesses Reduce net debt Consistent reduction of net debt Divestment in non-core as
Slide 8: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Euro millions For the six months ended 30 June 2003 30.06.03 30.06.02 Turnover 2,913.5 3,084.2 Operational Profit (EBIT) 61.8 59.2 Net Financial Charges (116.3) (121.4) Profit on Ordinary Activities (54.5) (62.2) Extraordinary Profits / (Losses) 97.5 (
Slide 9: Turnover: Sector and Geographical Breakdown
SONAE SGPS TURNOVER Euro millions SECTOR AND GEOGRAPHICAL BREAKDOWN 6,386 6,276 5,751 Retail 54% 5,202 Portugal 65% Brazil 16% Shopping Centres 3,075 3,217 ** 4% 2,585 3,084 2,255 2,914 Telecom. Rest of 13% Europe 16% Sonae Wood Rest of Capital & Based the World Holding 1H03 Products 3% 1996 1997 19
Slide 10: EBITDA 1st Half 2003
SONAE SGPS EBITDA – 1st Half 2003 Euro millions SECTOR BREAKDOWN 286 * 54 271 -3 35 11 Brazil Portugal 98 75 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding * At constant exchange rates # 10
Slide 11: Net Profit Before Minority Interests 1st Half 2003
SONAE SGPS NET PROFIT BEFORE MINORITY INTERESTS – 1st Half 2003 Euro millions SECTOR BREAKDOWN 89 23 (28) (9) 15 (44) Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 11
Slide 12: Balance Sheet
SONAE SGPS BALANCE SHEET Euro millions As at 30 June 2003 30.06.03 30.06.02 Fixed Assets * 5,176.5 5,264.8 Stocks 689.5 722.8 Debtors 885.8 956.8 Cash and short term investments 482.8 523.2 Deferrals 551.1 588.0 Total Assets 7,785.7 8,055.6 Shareholders’ Funds * 518.7 653.2 Minority Interests 760.1
Slide 13: Total Assets 30 June 2003
SONAE SGPS TOTAL ASSETS – 30 June 2003 Euro millions 8,281 7,874 7,968 7,786 Shopping Centres 14% 5,925 Retail 29% 4,944 Telecom. 17% Wood Based Products Sonae Capital 29% and Holding 11% 835 ** 1998 * 1999 * 2000 2001 2002 1H03 * Pro-forma accounts considering the merger between Sonae Investimentos
Slide 14: Gross Investment 1st Half 2003
SONAE SGPS GROSS INVESTMENT – 1st Half 2003 Euro millions SECTOR AND GEOGRAPHICAL BREAKDOWN Brazil 15 216 9% 44 81 Rest of Europe 31% 59 Portugal 59% Rest of the 17 World 1% Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 14
Slide 15: Net Debt June 2003
SONAE SGPS NET DEBT – 30 June 2003 Euro millions SECTOR BREAKDOWN 1,005 3,332 461 378 824 663 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 15
Slide 16: Consolidated Financial Structure: Net Debt and Gearing
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 282% 3,900 261% 3,692 253% 3,528 3,600 239% 3,497 236% 3,377 3,294 3,332 3,173 215% 3,071 2,851 191%187% 2,501 2,428 172%175% 171% 159% 161% 158% 2,148 149%
Slide 17: Consolidated Financial Structure: Net Debt/EBITDA, Interest Cover
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.1x 6.1x 6.0x 5.8x 5.7x 5.7x 5.6x 5.6x 5.6x 5.1x 5.2x 4.7x 4.5x 3.6x 3.7x 4.4x 3.0x 3.1x 3.0x 3.1x 2.8x 2.5x 2.4x 2.5x 2.4x 2.3x 2.1x 2.1x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q
Slide 18: Consolidated Financial Structure by Business
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Euro millions 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 /
Slide 19: Outlook for 2003
SONAE SGPS 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 t
Slide 20: Outlook for 2003 – Main Actions
SONAE SGPS OUTLOOK FOR 2003 – MAIN ACTIONS Contain costs Lower levels of investment Divest from non-strategic assets Increase efficiency of use of capital Reduce debt Extend debt maturities # 20
Slide 21: Sonae Indústria
sonae indústria
Slide 22: Sonae Indústria Business Portfolio
(a) Eurresinas 100% Movelpartes SIR Resoflex 94.69% of voting rights 100% Tafiber Tafisa Espanha Taiber 100% Tafisa France SONAE INDÚSTRIA 98% Glunz AG 100% Tafisa UK TAFISA BUSINESS PORTFOLIO 91.23% (a) 67% Tafisa Canada SONAE INDUSTRIA 63% Tafisa Brasil 100% Tafisa South Africa 50% Gescartão (70.2
Slide 23: Indústria Vision and Mission
SONAE INDÚSTRIA VISION AND MISSION Sonae Indústria is the leading world manufacturer of Wood Based Panels in terms of production capacity and global presence. Sonae Indústria pursues value creation through rigorous cost and investment control focusing on improving operational margins, efficiently ma
Slide 24: Indústria Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE 39 Production sites in 8 Countries Canada Portugal United France Particle Board Kingdom Particle Board Particle Board MDF Surfaced Board MDF Particle Board Surfaced Board Surfaced Borad Surfaced Board Soft Board High Pressure Laminates OSB Germany Particle board MDF B
Slide 25: Wood Based Panels Production Capacity
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY (‘000 m3/year) 8,471 * 7,276 7,430 * 7,301* After a heavy investment period (EUR 1.2 billion), production capacity was 5,661 reduced due to the shut- + 31% down of old and obsolete plants, as initially planned. Between 1999 and 2002, raw board in
Slide 26: Wood Based Panels Sales
SONAE INDÚSTRIA WOOD BASED PANELS SALES (‘000 m3) 5,307 4,659 4,806 4,279 + 24% ... and sales increased by 2,833 26% in volume (17% in 2,699 Europe). 1999 2000 2001 2002 1H 2003 # 26
Slide 27: Indústria Turnover
SONAE INDÚSTRIA TURNOVER Euro millions By Product Others Plywood 7.5% 6.9% Value Added Products 15.3% MDF 22.1% 1,502 1,480 Hard Board 1.1% 1,374 1,285 Particle Board Surfaced Board 15.6% 26.5% 778 * 748 OSB Flooring 0.9% 768 4.1% By Market Rest of the World 5.3% South Africa Portugal 5.7% 6.8% Sout
Slide 28: Indústria EBITDA
SONAE INDÚSTRIA EBITDA – For the six months ended 30 June 2003 Euro millions 174 153 139 133 Continuous EBITDA growth since 1999 After a heavy investment period (1.2 euro 80 * 75 billion between 1999 and 2001), 2002 was the 89 first full year of production with the current installed capacity 199
Slide 29: Indústria Profitability Trend
SONAE INDÚSTRIA PROFITABILITY TREND Euro millions Capacity Utilization (%) 90% 80% In 2002, performance improved, a trend that 70% continued in the first half of 2003. 60% 50% 1999 2000 2001 2002 1H'03 Productivity 150% 140% 130% Since 2000, productivity increased by 120% • 37% in volume and 110% •
Slide 30: Indústria Profitability Trend: Price and Cost
SONAE INDÚSTRIA PROFITABILITY TREND Euro millions The combined effect of heavy investment in capacity during 99 – 01 together with a long economic recession has meant... Price trend Raw Industrial Cost excluding depreciation 110 110 100 100 90 90 80 80 70 70 1999 2000 2001 2002 1H '03 1999 2000 2001
Slide 31: Indústria Net Debt and Net Gearing
SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 243% 183% 904 867 872 170% 163% 806 822 159%164% 156% 768 748 777 148% 151%151% 756 143% 706 697 131% 126% 631 630 121% 118% 595 112%111%112% 109% 107%
Slide 32: Indústria Net Debt/EBITDA, Interest Cover
SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.8x 6.5x 6.1x 5.9x 5.6x 5.6x 5.3x 4.7x 4.3x 4.4x 4.1x 4.2x 3.9x 3.6x 3.4x 3.1x 3.1x 2.8x 2.5x 2.4x 2.2x 2.3x 2.2x 2.3x 1.9x 2.1x 2.1x 1.6x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3
Slide 33: Indústria Business Strategy – Outlook
SONAE INDÚSTRIA BUSINESS STARTEGY - OUTLOOK Main drivers of Turnover Growth and Operational Profitability – New production capacity 9 – Developing operational synergies 9 – Optimising capacity usage and cost control 9 – Improving sales mix (higher value added products) 9 – More efficient usage of ca
Slide 34: Sonae Produtos e Derivados Florestais
sonae produtos e derivados florestais
Slide 35: SPDF Pulp & Paper
SONAE PRODUTOS E DERIVADOS FLORESTAIS PULP & PAPER SPDF 100% SONAE WP 29.18% PORTUCEL, SA Key Operational Indicators of Portucel: - Produces BEKP * pulp and paper - Total pulp production capacity is approximately 1,220,000 tonnes/year. - Total uncoated woodfree paper production capacity is 1,050,000
Slide 36: Portucel Privatisation Conditions
SONAE PRODUTOS E DERIVADOS FLORESTAIS PULP & PAPER The Portuguese Government announced the conditions for the 2nd phase of Portucel’s privatisation: 25% share capital increase to be paid up with assets, followed by an offer to institutional investors of 15% of the share capital, OR Direct sale of a
Slide 37: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriIDUICAO
Slide 38: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 94.1% Modelo SONAE DISTRIB. Continente BRAZIL Food Retail Non-Food Retail Food Retail Brazil Continente Modalfa BIG* Modelo Worten Mercadorama (Paraná e Santa Catarina) Modelo Bonjour Max Mat (50%) Nacional (Rio Grande do Sul) SportZone MA
Slide 39: Distribuição Vision and Mission
SONAE DISTRIBUIÇÃO VISION AND MISSION Modelo Continente is the market leader in Portugal in food retail, and has a leading position in various non food retail markets. In Brazil, Modelo Continente is the leader in the Southern market and number 4 in the national ranking. Modelo Continente’s goal is
Slide 40: Distribuição Business Strategy – Value Creation
SONAE DISTRIBUIÇÃO BUSINESS STRATEGY – VALUE CREATION Growth Value Proposal Portugal Market share consolidation in hypers Supply chain integration and mini-hypers Development of neighbourhood and more convenience formats Category management Synergic development into non food formats Info
Slide 41: Distribuição Current Position June 2003
SONAE DISTRIBUIÇÃO CURRENT POSITION – 30 June 2003 Brazil y Hypers and Supers y Non food formats y Southern Region Market Leader (4th National) Portugal y 163 stores (433,000 sqm) y Hypers and Supers y 496 M.€ Gross Sales y Non food formats (1,766 M.R$) y Market Leader y 265 stores (420,000 sqm) y 1
Slide 42: Distribuição Business Portfolio June 2003
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO – 30 June 2003 Portugal Brazil 104 stores 296,000 sqm 1,034 M. € gross sales Continente Rio Grande do Sul Bonjour Paraná 149 stores S. Paulo Modelo 422,000 sqm Food based 484.5 M. € gross sales S. Catarina formats (1,724 M. R$) Worten BIG Eletroelectrónico Non f
Slide 43: Portugal Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Food based formats – Relative Market Share 32% 20% 12% 11% 11% 8% Sonae 2nd 3rd 4th 5th 6th Source: UCDR’s Market Share; Modelo Continente estimates. 12 month average, as of August 2003 Food based formats – Market Dynamics Sales Area Sales ≅ 4% Infl
Slide 44: Portugal Portfolio Analysis
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS Euro millions Gross sales EBITDA 2,798 242 2,657 226 2,467 199 (a) 1,245 1,288 (a) 92 98 2000 2001 2002 1H 2000 2001 2002 1H 2003 2003 (a) Until 2002, MaxMat # 44 was accounted for by the equity method of accounting. In 2003, Maxmat ‘s sales are inclu
Slide 45: Portugal Portfolio Analysis: Food and Non Food
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS Euro millions Gross sales EBITDA 194 202 Food formats 179 2,235 2,306 2,119 1,043 1,034 78 80 2000 2001 2002 1H 03 2000 2001 2002 1H 03 Non food formats 492 40 422 348 32 20 (a) 254 (a) 202 18 13 2000 2001 2002 1H 03 2000 2001 2002 1H 03 (a) Until 200
Slide 46: Portugal Portfolio Analysis: Stores, Area, Sales
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS Stores Area Gross Sales (‘000) (%) (1H 03) M. € (% change) Continente 14 132 31% 507 -4% Modelo 65 144 34% 466 2% Bonjour 25 20 5% 41 7% Others - - - 20 - Food 104 296 70% 1.034 -1% Worten 58 42 10% 136 9% Modalfa 46 23 5% 32 10% Sportzone 25 24 6% 36
Slide 47: Brazil Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL Total Area (‘000 km2) 8,514 Population (‘000) 174,633 GDP 2002 (b EUR) 500 per capita GDP (EUR) 2,863 North SÃO PAULO • Total Area (´000 km2) 248 • Population (´000) 38,378 (22% of total) • GDP 2002 (b EUR) 180 (36% of total) • per capita GDP
Slide 48: Brazil Portfolio Analysis
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Brazilian real millions Gross sales EBITDA 224 3,404 3,360 190 3,008 142 1,766 1,590 60 40 2000 2001 2002 1H 2000 2001 2002 1H 2003 2003 # 48
Slide 49: Brazil Portfolio Analysis: Stores
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Stores Area Gross Sales (‘000) (%) (1H 03) M. R$ (% change) São Paulo Big* 19 115 27% 375 21% Big Eletroelectrónico 6 Paraná Big 10 2 96 22% 408 3% Big Eletroelectrónico Mercadorama** 26 Sta. Catarina Big 5 Big Eletroelectrónico 2 34 8% 130 15% Mercador
Slide 50: Distribuição Net Debt and Net Gearing
SONAE DISTRIBUIÇÃO CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 1,101 933 925 381% 884 897 909 860 824 789 316% 764 297% 728 284% 687 266% 643 173% 204% 140% 524 193% 170% 96% 93% 91% 70% 75% 77% 82% 80% 78% 70%
Slide 51: Distribuição Net Debt/EBITDA, Interest Cover
SONAE DISTRIBUIÇÃO CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 5.1x 4.9x 4.5x 4.4x 4.0x 4.0x 3.8x 3.7x 3.5x 3.5x 3.3x 3.2x 3.1x 3.0x 2.8x 2.9x 2.9x 2.8x 2.9x 2.7x 2.5x 2.5x 2.4x 2.5x 2.3x 2.2x 2.4x 1.7x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2
Slide 52: Sonae Imobiliária
SONAE IMOBILIARIA sonae ile dilelar:
Slide 53: Imobiliária Business Portfolio – Iberia
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO – IBERIA SONAE IMOBILIÁRIA Shopping Shopping Centres Centres Portugal Spain CascaiShopping (50%)1 - (72)2 Centro Colombo (50%)1 - (120)2 Parque Principado - Oviedo (25%)1 - (70)2 CoimbraShopping (100%)1- (26)2 MaiaShopping (100%)1 - (31)2 Plaza Mayor - Málaga (75
Slide 54: Business Portfolio – Rest of Europe and Brazil
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO – REST OF EUROPE AND BRAZIL SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Italy Greece Germany Brazil Austria UNDER DEVELOPMENT UNDER DEVELOPMENT UNDER DEVELOPMENT Shopping Penha (7%)1 - (18)2 Brescia Centre (100%)1 - Aegea
Slide 55: Imobiliária Vision and Mission
SONAE IMOBILIÁRIA VISION AND MISSION Sonae Imobiliária is the dominant leader in the Portuguese market, in Shopping Centre development, management and investment. Focus efforts on those markets where it is already present, namely Spain, Italy, Greece, Germany, Austria and Brazil. Maintain a partners
Slide 56: Imobiliária Global Strategy
SONAE IMOBILIÁRIA GLOBAL STRATEGY Sonae Imobiliária is an international company with an emphasis in Europe and a strategy built around two vectors: FOCUS GROWTH Integrated view of the Shopping and Maintain policy of joint-ventures and Leisure Centre industry international diversification Innov
Slide 57: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Currently, Sonae Imobiliária… … owns or co-owns… 25 Shopping Centres in operation, that represent 1.1 thousand sqm of GLA 13 in Portugal (607 thousand sqm), 6 in Spain (302 thousand sqm), 6 in Brazil (222 thousand sqm) 18 Shopping Centres under development, with ci
Slide 58: Development – Portugal
SONAE IMOBILIÁRIA DEVELOPMENT - PORTUGAL PARQUE ATLÂNTICO ESTAÇÃO VIANA Location Ô Ponta Delgada, Azores Location Ô Viana do Castelo Shop Units Ô 96 Shop Units Ô 109 GLA Ô 22,000 sqm GLA Ô 18,000 sqm Investment Ô € 33 millions Investment Ô € 47 millions Opening Ô 15 October 2003 Opening Ô 18 Novembe
Slide 59: Management – Portugal
SONAE IMOBILIÁRIA MANAGEMENT - PORTUGAL 2003: 13 properties with 597,563 sqm of GLA + several commercial galleries 1st Half 2003 Vs 1st Half 2002 Sales: -0.6% Visits: -2.8% SALES (Euro millions) VISITS (millions) 1,632 1,515 156 156 132 128 1,206 1,027 75 73 711 707 1999 2000 2001 2002 1H 2003 1999
Slide 60: Development – Spain
SONAE IMOBILIÁRIA DEVELOPMENT - SPAIN DOS MARES LUZ DEL TAJO Construction work on schedule Construction work on schedule Location Ô San Javier, Murcia Location Ô Toledo Shop Units Ô 77 Shop Units Ô 99 GLA Ô 24,000 sqm GLA Ô 41,400 sqm Investment Ô € 35 millions Investment Ô € 77 millions Opening Ô S
Slide 61: Development – Spain (continued)
SONAE IMOBILIÁRIA DEVELOPMENT - SPAIN ZUBIARTE PLAZA MAYOR SHOPPING Construction work on schedule Obtaining building permit Location Ô Bilbao Location Ô Málaga Shop Units Ô 77 Shop Units Ô 53 GLA Ô 21,700 sqm GLA Ô 16,700 sqm Investment Ô € 75 millions Investment Ô € 31 millions Opening Ô Autumn 200
Slide 62: Management – Spain
SONAE IMOBILIÁRIA MANAGEMENT - SPAIN 2003: 7 properties with 312,262 sqm of GLA + 1 gallery under management 1st Half 2003 Vs 1st Half 2002 Sales: +13.9% (+14.3% Like for Like) Visits: -21.3% (+2.2% Like for Like) SALES (Euro millions) VISITS (millions) 445 66 271 237 37 208 33 90 17 26 70 15 1999 2
Slide 63: Development – Italy and Greece
SONAE IMOBILIÁRIA DEVELOPMENT – ITALY AND GREECE BRESCIA CENTRE PAVIA CENTRE Obtaining building permit 2nd project of Sonae Imobiliária in Italy Location Ô Brescia Location Ô Borgarello, Pavia Shop Units Ô 127 Shop Units Ô 135 GLA Ô 29,000 sqm GLA Ô 47,500 sqm Investment Ô € 109 millions Investment
Slide 64: Development – Germany and Austria
SONAE IMOBILIÁRIA DEVELOPMENT – GERMANY AND AUSTRIA 3DO ALEXANDER PLATZ Obtaining building permit Architecture project was approved Location Ô Dortmund Location Ô Berlin Shop Units Ô 213 Shop Units Ô 224 GLA Ô 55,000 sqm GLA Ô 53,200 sqm Investment Ô € 250 millions Investment Ô € 265.5 millions Open
Slide 65: Development – Brazil
SONAE IMOBILIÁRIA DEVELOPMENT – BRAZIL PENHA SHOPPING BOAVISTA SHOPPING Expansion Construction work on schedule Location Ô São Paulo Location Ô Santo Amaro, São Paulo Shop Units Ô + 43 Shop Units Ô 166 GLA Ô + 12,300 sqm GLA Ô 24,000 sqm Investment Ô € 11 millions Investment Ô € 18 millions Opening
Slide 66: Management – Brazil
SONAE IMOBILIÁRIA MANAGEMENT - BRAZIL 2003: 6 properties with 225,253 sqm of GLA 1st Half 2003 Vs 1st Half 2002 Sales: +14.2% (-11.6% Like for like) Visits: +8.0% (-4.1% Like for Like) SALES (Euro millions) VISITS (millions) 246 210 197 185 54 49 49 44 143 125 25 24 1999 2000 2001 2002 1H 2003 1999
Slide 67: Imobiliária Management
SONAE IMOBILIÁRIA MANAGEMENT Sonae Imobiliária manages 1.5 thousand sqm of GLA in Portugal, Spain, Italy * and Brazil: a growth of 17% compared to 1st Half 2002 Managed GLA trend (000's sqm) GLA under management (geographical breakdown) Average increase of 220 thousand sqm 1,517 Italy 4% of GLA 1,50
Slide 68: Cumulative Investment up to June 2003
SONAE IMOBILIÁRIA CUMMULATIVE INVESTMENT UP TO 30 JUNE 2003 Euro millions (COUNTRY BREAKDOWN) Portugal € 1,094 64% Spain € 435 26% Germany € 10 1% Greece € 19 1% Italy €5 0% Brazil € 132 8% € 1,695 100% Investment in 1st Half 2003 was 63 euro millions # 68
Slide 69: Market Value of Investments
SONAE IMOBILIÁRIA MARKET VALUE OF INVESTMENTS 2,650 2,561 1,944 1,480 1,471 1,441 1,359 1,064 959 854 760 534 '12/98 '12/99 '12/00 '12/01 '12/02 '06/03 Total value Sonae Imobiliária Share During 1st Half 2003: • Sale of 50% Vasco da Gama => Decrease of 102 euro millions • On a Like for Like basis: i
Slide 70: NAV of Total Properties and Loan/Value
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE NAV of Total Properties Loan / Value (values in Euro million) (NAV of Sonae Imobiliária’s share) + 8.9% 1,037 1,129 In six 934 months 37% 752 35% 34% 643 29% 22% 459 379 13% 12% 1997 1998 1999 2000 2001 2002 1H 2003 1997 1998 1999 2000 2001 2002 1H
Slide 71: Imobiliária Net Debt and Net Gearing
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 600 716 272% 628 244% 467 217% 436 469 174% 424 160% 406 420 153% 141%148%141% 130% 336 319 112%119% 105% 289 97% 258 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 72: Imobiliária Net Debt/EBITDA, Interest Cover
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt / EBITDA (b) Interest Cover (EBITDA / Interest Paid) 8.2x 7.2x 6.8x 7.0x 6.1x 6.0x 5.8x 5.7x 5.6x 5.7x 5.6x 5.4x 5.0x 5.1x 3.6x 3.5x 3.6x 3.4x 2.9x 3.1x 3.0x 3.0x 2.5x 2.6x 2.7x 2.7x 2.4x 2.5x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1
Slide 73: SIERRA Fund
SONAE IMOBILIÁRIA SIERRA FUND On 30 September 2003, the Sonae Imobiliária European Retail Real Estate Asset Holdings B.V. (“SIERRA Fund”) was created, with €1.08 billion of Equity Institutional Investors ABP Third-party Equity capital of €540 Sonae Imobiliária CDC millions includes an initial in
Slide 74: Sonae Com
sonae com
Slide 75: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 46.29% 56.67% 100% 100% Software Media & & Mobile Fixed Internet Systems Integration Optimus Novis Publico We Do Consulting (100%) Clix (56.67%) Enabler (66%) Mainroad (56.7%) Bizdirect (75.1%) 20.18% 43.33% 43.33% France Telecom (1) 52.34% of voting rights
Slide 76: Sonaecom Generic Guidelines
SONAE COM GENERIC GUIDELINES Improve competitive Guarantee future Improve profitability position of each growth business Find new growth Execution Culture Focus on Cash Change regulation opportunities Achieve outstanding Minimize cash Be an active player Relentlessly pursue operational efficiency co
Slide 77: Sonaecom Consolidated Key Figures
SONAE COM SONAECOM – CONSOLIDATED KEY FIGURES (a) Euro millions TURNOVER EBITDA 95 793 731 56 55 522 53 394 381 39 255 26 1999 2000 2001 2002 1H 2003 1999 2000 2001 2002 1H 2003 (a) For the first time, in 2003, Sonaecom presented its consolidated financial statements in accordance with International
Slide 78: Optimus: Mobile Competitive Landscape
SONAE COM OPTIMUS: MOBILE COMPETITIVE LANDSCAPE Optimus entered the market 5 years ago, 10 years later than TMN and 6 years later than Vodafone. Since launch, it has captured 26% of new market entrants and is one of the most successful third operators in Europe with a market share of over 22% TMN Vo
Slide 79: Optimus: Preparing the Future – Mobile Data Push
SONAE COM OPTIMUS: PREPARING THE FUTURE – MOBILE DATA PUSH Data is key to Optimus’ strategy, representing 10.4% of customer revenues in 1H03 Optimus has launched many new data applications and services amongst which : Multimedia Messages All Optimus Zone mobiles have - Camera - Video recorder Portal
Slide 80: Novis Today: Market Share
SONAE COM NOVIS TODAY Principal activity is the optimization of communication and network management for the Sonaecom Group An opportunistic approach is taken towards key markets Novis leads altnets in its key market segments : SME and SoHo market Market Share (# Clients) – 1st Semester 2003 Residen
Slide 81: Novis Today: Repositioning
SONAE COM NOVIS TODAY Novis has repositioned its business to focus on core segments, SoHos and SMEs, wholesale business – clear path to profitability Two separate management structures have been created... Novis Telco Mainroad ... and significant restructuring has been implemented along with agressi
Slide 82: Clix
SONAE COM CLIX Launched in 1999 as an access based ISP, rapidly achieved clear leadership in the only liberalized Internet market in Portugal – narrowband With broadband solutions, heavy Internet users are migrating to the new broadband offers Accelerated decline in narrowband traffic since 4Q02 Por
Slide 83: Público
SONAE COM PUBLICO Público’s management dedicated significant effort to restructuring the business In 1Q03, Público increased its level of average paid circulation by 14% compared with the same quarter of 2002. Between 1Q02 and 1Q03 headcount reduced by 6% staff costs cut by 10% 2003 continues to be
Slide 84: Software and Systems Integration
SONAE COM SOFTWARE AND SYSTEMS INTEGRATION S&SI ¾Telecom ¾Retail systems ¾Provider of ¾B2B systems integrator and corporate IT platform integrator and software integrated specialized software developer solutions in indirect developer goods S&SI presents high growth potential and is already generatin
Slide 85: Sonaecom Net Debt and Net Gearing
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 548 572 513 472 457 467 129% 124% 429 115% 380 378 384 387 100% 116% 348 95% 104% 89% 86% 82% 91% 86% 71% 79% 81% 58% 74% 65%68% 216 66% 60% 64% 35% 142
Slide 86: Sonaecom Net Debt/EBITDA, Interest Cover
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt / EBITDA (b) Interest Cover (EBITDA / Interest Paid) 10.8x 9.5x 9.2x 8.2x 8.2x 7.7x 7.2x 6.5x 6.4x 5.1x 4.9x 5.2x 4.0x 3.8x 4.2x 4.2x 3.7x 3.5x 3.7x 3.1x 3.2x 2.5x 2.6x 1.9x 2.1x 1.5x 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 87: Sonaecom Regulation
SONAE COM REGULATION After more than a year without relevant regulatory decisions, the Regulator has started to take more positive measures Notwithstanding these positive signs, there are some critical competitive distortions that remain unresolved: Mobile “network effect” Broadband liberalisation:
Slide 88: Sonaecom Room for Growth
SONAE COM ROOM FOR GROWTH Sonaecom has room to deliver further improvements in profitability: improved processes greater Group synergies cost reductions improved working capital management controlled CAPEX Confident that consolidated Free Cash Flow breakeven in full year 2003 will be achieved In add
Slide 89: Sonae Capital
sonae capital
Slide 90: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Hotel Management Construction & Resort Manag. Engineering, & Develop. Joint -Ventures Car Hire Transport Venture Leisure & Risk Capital Residential & Retailing & Logistics Capital Fitness & Sport Development Travel Sonae Turismo SPRED Choice Car (50%) S
Slide 91: Sonae Capital Vision and Mission
SONAE CAPITAL VISION AND MISSION Sonae Capital concentrates its strategic investments within sectors undergoing consolidation. Sonae Capital develops businesses to take a leading role in their industries. Sonae Capital generates options and future opportunities OBJECTIVE Add value and take advantage
Slide 92: Sonae Capital Turnover and EBITDA 1st Half 2003
SONAE CAPITAL TURNOVER AND EBITDA – 1st Half 2003 Euro millions Turnover 662 626 Construction & 553 Engineering, Residential Development 22% Joint-Ventures & 265 276 Risk Capital 43% Car Hire & 2000 2001 2002 1H 2003 Retailing 11% EBITDA Transport & Logistics, 79 Insurance Brokerage 58 Tourism 6% 48
Slide 93: Tourism (Sonae Turismo)
SONAE CAPITAL VISION AND MISSION Tourism (Sonae Turismo) More efficient use of capital employed by: selling individual property units sooner divesting selected assets Resorts local authority planning approval for UNOP’s 1 and 2 in the Tróia Tourist Development Area expected during the 2nd half of 20
Slide 94: Refrigeration, Air Conditioning, Co-generation
SONAE CAPITAL VISION AND MISSION Refrigeration, Air Conditioning and Cleaning Services (Selfrio, Safira) Selfrio focused on cost reduction and broadening the offer of engineering services to its customers Safira is already a profitable business with strong growth, particularly outside the Sonae Grou
Slide 95: Construction, Engineering and Residential Development
SONAE CAPITAL VISION AND MISSION Construction and Engineering (Contacto, Cinclus, Spinarq) Remarkable turnaround at Contacto despite adverse economic environment Norscut project (156 kms motorway linking Viseu to the border with Spain near Chaves) on schedule Growth in profitability at Cinclus Resid
Slide 96: Auto Sector, Transport, Logistics, Insurance Brokerage
SONAE CAPITAL VISION AND MISSION Auto Sector (Choice Car) Choice Car, held jointly by Sonae and the Salvador Caetano Group, has set up a partnership with Império Pneus, and launched a new brand, Império Autocenter, leader in Portugal in the car service and assistance sector (46 stores) Transport and
Slide 97: Keep Growth/Value Creation Options Open
SONAE CAPITAL KEEP GROWTH/VALUE CREATION OPTIONS OPEN Focus on self financing businesses (turnaround at Contacto and Box Lines) Pruning of the portfolio (sale of Torre S. Rafael and Palmares, partnership at Auto Center,...) Review of divestment opportunities # 97