Sonae Sgps Sa · EURONEXT:SON

Sonae Sgps Sa — Sonae — FY2023 Earnings Presentation

26 slides from Sonae Sgps Sa's earnings presentation, Mar 13, 2024

  1. Slide 1: 2023 Results

    2023 Results March 13, 2024

  2. Slide 2: 2023 in summary

    2023 in summary • NAV of €4.5bn, +14% yoy • Significant value accretive portfolio changes • Strong operational performance and cash flow generation • Solid financial position and low leverage • Important steps towards our commitments to our people and our planet • Proposal of +5% yoy dividend growth

  3. Slide 3: Context

    Context

  4. Slide 4: European economy showed resilience, though decelerating

    European economy showed resilience, though decelerating Inflation rate maintained Unemployment GDP growth its deceleration trend resisted and continues decelerated in historical low levels % yoy % Real, % yoy 8.4 6.9 8.0 6.2 5.0 6.6 2.6 5.7 6.5 6.5 2.5 4.8 6.6 2.2 6.5 1.8 1.9 2.7 6.4 6.4 1.1 2.4 0.6

  5. Slide 5: Portfolio

    Portfolio

  6. Slide 6: Active portfolio management activity

    Active portfolio management activity Since 2020 Divestments €1.4bn Prime Growth €270m M&A Reinforced €465m shareholdings Cash Cash in out

  7. Slide 7: Our businesses' operational performance fuelled NAV to €4.5bn in YE23

    Our businesses’ operational performance fuelled NAV to €4.5bn in YE23 Retail Real Estate Telco & tech Other investments x% NAV 54% 23% 20% 3%

  8. Slide 8: MC reinforced its leadership position with a benchmark profitability and solid cash flow generation

    MC reinforced its leadership position with a benchmark profitability and solid cash flow generation Turnover uEBITDA Free Cash Flow (€m) (€m) (€m) +10.5% +13.4% LfL +8.9% 6,607 5,978 639 (9.7%) 1,806 563 (9.4%) -78 4Q 1,684 181 214 4Q 163 (10.0%) (9.7%) 136 4,801 9M 4,294 458 9M 400 2022 2023 2022 2

  9. Slide 9: Worten resilient performance in a challenging market with reinforced market share

    Worten resilient performance in a challenging market with reinforced market share Turnover Online sales uEBITDA % of Turnover (€m) (€m) +4.9% LfL +4.3% 1,298 -1.7% 1,238 76 (6.2%) 75 (5.8%) 418 4Q 401 16 16 4Q 30 30 (7.5%) (7.1%) 9M 836 880 9M 46 45 2022 2023 2022 2023 2022 2023

  10. Slide 10: Sierra execute incredibly its strategy and continued its growth path across the board

    Sierra execute incredibly its strategy and continued its growth path across the board Direct Result Net Result INREV NAV (€m) (€m) (€m) +8.8% +58 +18 1,057 89 972 63 45 31 2022 2023 2022 2023 2022 2023

  11. Slide 11: NOS delivered profitable growth, sustainable returns and cash generation

    NOS delivered profitable growth, sustainable returns and cash generation Turnover Net Result Free Cash Flow (€m) (€m) (€m) +119 +30.7% +76 148 181 1,521 1,597 138 29 2022 2023 2022* 2023 2022* 2023* * - excluding effects from Cellnex towers sales

  12. Slide 12: Consolidated view

    Consolidated view

  13. Slide 13: Turnover surpassed €8bn with a 9% increase

    Turnover surpassed Turnover €8bn with a 9% (€m) +9.2% increase 8,399 7,693 +6.2% 2,363 4Q 2,225 6,036 9M 5,468 2022 2023

  14. Slide 14: EBITDA increased to €1.0bn fuelled by uEBITDA and further capital gains

    EBITDA increased to EBITDA €1.0bn fuelled by (€m) +7.2% uEBITDA and further 990 capital gains 923 410 4Q 381 9M 543 581 2022 2023

  15. Slide 15: Greater D&A and financial costs offset by improved indirect result

    Greater D&A and financial costs offset by improved indirect result Direct Result Indirect Result Net Result (group share) (€m) (€m) (€m) +22 -20 357 336 446 427 +42 -4 2022 2023 -46 2022 2023 2022 2023

  16. Slide 16: Free cash flow stood at €187m in line with last year

    Free cash flow stood at €187m in line with last year FY23, (€m) 466 +1 +93 187 +331 -39 -443 -223 EBITDA WK and Operational M&A capex Sale of Financial Dividends FCF bef. (inc. rents others capex assets activity received dividends and taxes) paid

  17. Slide 17: Strong CF generation from businesses and portfolio moves resulted in record-low leverage

    Strong CF generation from businesses and portfolio moves resulted in record-low leverage Consolidated Holding Financial net debt Financial net debt (€bn) (EOP, €m) -0.6 -554 1.1 485 0.5 -69 2019 2023 2019 2023 Total net debt /EBITDA LTV holding (average, %) -0.8 -12.3pp 3.4x 12.9 2.6x 0.6 2019 2023

  18. Slide 18: Our businesses' financial ratios stood within defined targets

    Our businesses’ financial ratios stood within defined targets Net debt to Net Fin. Debt to Gross LTV EBITDA EBITDA AL (%) 2.7x 2.8x 43.0 38.1 1.8x 1.8x YE22 YE23 YE22 YE23 YE22 YE23

  19. Slide 19: Dividend increased 5% yoy in line with Sonae's policy

    Dividend increased 5% yoy in line with Proposed dividend per share 5.639 euro cents per share Sonae’s policy +5% Dividend growth +5% yoy Dividend yield 6.2% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Proposal

  20. Slide 20: Value creation a long-term journey

    Value creation Economic a long-term journey Natural Our mission Social

  21. Slide 21: Natural Value

    -6% Natural Value GHG emissions tCO2e Scope 1+2 (versus 2022) 87% Recyclable plastic packaging in own brand products 40% Own production, combined with green supply contracts

  22. Slide 22: Social Value

    Social Value 40% €33m Leadership positions Community held by women support

  23. Slide 23: Outlook

    Outlook

  24. Slide 24: Our portfolio

    Our portfolio Retail Real Estate Telco & tech Other

  25. Slide 25: Q&A

    Q&A

  26. Slide 26: Sonae

    Sonae

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