Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (October 2007)
32 slides from Sonae Sgps Sa's investor presentation, October 2007
Slide 1: Sonae SGPS Management Presentation
SONAE SGPS MANAGEMENT PRESENTATION October 2007
Slide 2: Agenda
AGENDA 1 Sonae SGPS: Who we are 2 Business units overview 3 Financial results 4 Challenges going forward #1
Slide 3: Sonae SGPS: Who we are
Sonae SGPS: Who we are
Slide 4: SGPS Corporate Profile
SONAE SGPS CORPORATE PROFILE Sonae SGPS controls and actively manages a portfolio of companies, by: setting strategic guidelines and objectives together with management teams; Mission monitoring and driving performance; supporting joint value creation initiatives; identifying new business opportunit
Slide 5: SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 100% 100% 50% 50.1% 100% Sonae Distribuiç Distribuição Sonae Sierra Sonaec Sonaecom Sonae Capital FOOD & NON FOOD SHOPPING CENTRES TELECOMMUNICATIONS SERVICES RETAIL Market leader Complementary Market leader Leading integrated in shopping centre businesses to
Slide 6: SGPS Track Record: Total shareholder return
SONAE SGPS TRACK RECORD Total shareholder return: years 1 34% 46% 11% 5 23% 8% 10 10% No capital calls since 2000; Spin off Sonae Indústria (2005); 9% 15 24% Spin off Sonae Capital (2008); Consistently delivering above 9% 20 average shareholder return for 19% more than 20 years PSI 20 Sonae Referenc
Slide 7: SGPS Track Record
SONAE SGPS TRACK RECORD Long term Flexibility Entrepreneurship perspective Acquisitions of Tafisa and Joint-venture approach: Intrinsic to the Sonae Culture Glunz; Promodés; and sponsored by the Group Grosvenor; Chairman; Expansion to Brazil (retail, France Télécom. wood industry and Shopping Contin
Slide 8: Business units overview
Business units overview
Slide 9: Sonae Distribuição
OP orc DISTRIBUICAO Seatsism Gistribuicao
Slide 10: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO SONAE DISTRIBUIÇÃO Food Retail Non- Non-Food Retail Consumer Elect. Computers Hypermarkets Hypermarkets Sports Goods Apparel DIY Supermarkets Travel Agencies + 4 format start- start-ups over the last 4 years #9
Slide 11: Distribuição Strategic Guidelines
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Growth, both organic and through acquisition opportunities; Growth Develop and fine-tune recently launched concepts; Launch new concepts in Portugal, leveraging on all synergies available; Expansion of current businesses to new geographical areas (Spanish mark
Slide 12: Distribuição Key Facts
SONAE DISTRIBUIÇÃO KEY FACTS No.1 retailer 3.1 Bn€ in Portugal 2006 turnover (with food and non food retail) (205,000 articles in portfolio) ~25,000 ~565,000 employees sqm sales area (in 517 stores) ~ 1.1 Bn€ 254 Mn€ Real Estate Book Value 2006 EBITDA (77% of own sales area generating 80% of sales)
Slide 13: Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Turnover (M.€) EBITDA (M.€) 3,091 254 2,621 2,745 252 2,474 2,576 242 235 233 2,394 195 2,197 158 2002 2003 2004 2005 2006 9M07 2002 2003 2004 2005 2006 9M07 POC IFRS POC IFRS Sales Area (‘000 sqm) Number of Stores 535 480 543 574 495 335 427 433 282 415 258 2
Slide 14: Distribuição Corporate Developments
SONAE DISTRIBUIÇÃO CORPORATE DEVELOPMENTS 3Q07:Acquisition of Carrefour’s hypermarket operations in Portugal (subject to approval by the competition authority). Strengthen leadership in the Portuguese food retail market; Immediate increase installed sales area by 17%; Modern retail market share incr
Slide 15: Sonae Sierra
sonae sierra
Slide 16: Sierra Business Portfolio
SONAE SIERRA BUSINESS PORTFOLIO SONAE SIERRA Shopping Centres Sierra development Sierra investment Sierra management Sierra Brazil Responsible for Owns Sonae Sierra’s Responsible for day to Similar business development of assets – shopping day management of structure in Brazil; shopping centres; cen
Slide 17: Sierra Strategic Guidelines
SONAE SIERRA STRATEGIC GUIDELINES Increase shareholder value through developing, owning or co-owning and Growth managing Shopping Centres; Be the best international Shopping Centre specialist International expansion Expand presence to new geographical areas. Reinforce presence on a specific number o
Slide 18: Sierra Key Facts
SONAE SIERRA KEY FACTS PORTUGAL SPAIN 12 BRAZIL International Shopping 150 M€ centre 2006 Net Operating Income 14 13 specialist GREECE ITALY 46 ~5.4 Bn€ Shopping centres co-owned 2006 Market value of investments 1.8M sqm 1.5 Bn€ Total owned/co-owned Gross 2006 Net Asset Value Lettable Area (GLA) ~ 2
Slide 19: Sierra Consolidated Figures
SONAE SIERRA CONSOLIDATED FIGURES Net Profit (M.€) EBITDA (M.€) 271 150 249 126 219 112 207 108 95.5 98 149 127 105 155 2002 2003 2004 2005 2006 9M07 2002 2003 2004 2005 2006 9M07 Market Value of Investments (M.€) NAV per Share (€) 49.75 5,840 45.82 4,728 4,096 38.90 3,341 3,439 32.60 2,868 2,745 29
Slide 20: Sierra Corporate Developments
SONAE SIERRA CORPORATE DEVELOPMENTS Sierra Investments acquired first property in Romania (River Plaza Mall); Sierra Investments acquired, in a 50/50 partnership, the shopping centre Modelo Albufeira and Continente Portimão (Algarve, Portugal); Acquisitions Sierra Brazil acquired 5% of shopping Tivo
Slide 21: Sonaecom
sonae com
Slide 22: Com Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% 99% 100% Telco Mobile Mobile Telco Fixed Media SSI (1) SSI (1) #3 mobile Operator; Leading altnet Reference newspaper Information system operator in Portugal; in Portugal; and Technology Mobile communications products provider; in Portugal: traditional
Slide 23: Com Strategic Guidelines
SONAE COM STRATEGIC GUIDELINES Extension of addressable market: Mobile-fixed convergence; wireless internet Growth access; Organic Expand network coverage and capacity: full scale UMTS and HSDPA network;. Increase direct access broadband services; Lead innovation in the broadband market; Improve cus
Slide 24: Com Key Facts
SONAE COM KEY FACTS SONAECOM OPTIMUS FIXED MEDIA SSI 20% MS 15% MS 12.7% MS #1 worldwide at end 9M07, with at the end of 9M07, with of paid circulation at end 2.8 million subscribers 472K direct services 2Q07, ranking third in the player market in Revenue Assurance +12% 59.1% 14.0% MS 36 Active cust
Slide 25: Com Consolidated Figures
SONAE COM CONSOLIDATED FIGURES Turnover (M.€) EBITDA (M.€) 201 880 184 838 843 836 789 157 644 146 121 610* 72 124* 2002 2003 2004 2005 2006 9M07 2002 2003 2004 2005 2006 1H07 FCF (M.€) CAPEX (M.€) 62 254 35 159 13 141 127 123 122 2002 2003 2004 2005 2006 9M07 199.1 -81.7 -55 -114.8 2002 2003 2004 2
Slide 26: Com Corporate Developments
SONAE COM CORPORATE DEVELOPMENTS Sonaecom Fixed 2Q07: Acquisition of Oni’s residential and SOHO customer base; Acquisition of Tele2 Portugal Strengthen growth in Direct Access and dilution of fixed costs; Opportunity to up-sell: Indirect to Direct; Low-end 2Play to higher value offers; IPTV Direct s
Slide 27: Financial results
Financial results
Slide 28: SGPS Turnover
SONAE SGPS TURNOVER Million euro Contribution to consolidated 2,394 Retail 6,276 6,260 6,464 6,392 2,203 Shopping 113 Centres 109 4,384 +5.9% 644 Telecom. 2,137 624 313 Sonae Capital 322 1,999 14.7 Holding 7 2002 2003 2004 2005 2006 9M07 (81) Eliminations POC IFRS (85) 9M07 * Excluding the contribut
Slide 29: SGPS EBITDA
SONAE SGPS EBITDA Million euro Contribution to consolidated 197 Retail 938 948 158 Shopping 169 Centres 649 +22% 126 637 599 128 508 Telecom. 132 21 Sonae Capital 10 416 (3) Holding (3) 2002 2003 2004 2005 2006 9M07 (2) POC Eliminations IFRS 9M07 * Excluding the contributions of Sonae Indústria and
Slide 30: SGPS Gross Investment
SONAE SGPS GROSS INVESTMENT Million euro September 2007 45 223 148* (34)** 276 121 Retail Portugal Shopping Centres Telecom. Sonae Capital Holding and Others 30-Sep-07 *Impacted by the disposal of PT shares (112 M.€). **sale of non Strategic Assets (including sawmills and real estate management comp
Slide 31: SGPS Net Debt
SONAE SGPS NET DEBT Contribution to consolidated Million euro 564 Retail 2,822 377 +19.6% Shopping 747 2,466 Centres 477 2,063 314 Telecom. 337 1,620 1,913 * 31 December 2006 251 Sonae Capital 30 September 2007 142 591 Holding 2004 2005 2006 9M07 731 Net Debt/ Debt/Annualized EBITDA Net Gearing 3.6
Slide 32: SGPS Net Debt – Stand Alone Basis
SONAE SGPS NET DEBT – STAND ALONE BASIS Million euro The adequacy of the capital structure in each business of its portfolio can be summarised, as follows: Sonae SGPS Net Debt: 591 Sonae Sonae Sonae Distribuição Sonaecom Sierra (a) Capital Net Debt: 564 Net Debt: 1,509 Net Debt: 313 Net Debt: 251 EB