Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (October 2002)
84 slides from Sonae Sgps Sa's investor presentation, October 2002
Slide 1: Sonae SGPS October 2002
sonae sgps OCTOBER 2002 * www.sonae.pt * Data as of 30 June 2002
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 94.62% 50.01% 74.97% * 67.04% 82.79% ** 100% Sonae Modelo SonaeCom Sonae Indústria Continente Sonae Imobiliária Capital Wood Based Panels Food Retail Shopping Centres Telecommunications Tourism Non Food Retail Services Packaging Pulp&Paper S. I. PROPERTY S. I
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 South America Africa Brazil South Africa Mozambique Assets (factories, stores, shopping centres,…) Gabon Admin. and sales offices 62 thousand people 18 countries #4
Slide 5: Sonae SGPS 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: Sonae SGPS Current Sectorial Strategy
SONAE SGPS CURRENT SECTORIAL STRATEGY To concentrate resources on businesses with the highest value creation potential and where SONAE has or can achieve competitive leadership . Conclusion of the long and intensive investment plan Wood Based Panels . Improve operational margins in the countries whe
Slide 7: Business Portfolio Development: Capital Employed by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2002 - 2007 by Sector 4,483 6,560 C.A.G.R. ∆ CE (2002-2007) Tourism 2% 5% 197 ( + 23%) Telecoms 9% 11% • 8% C.A.G.R. in capital 324 ( + 12%) employed Wood Based 38% 29% 207 ( + 2%) • Strong increase in exposure Pane
Slide 8: Business Portfolio Development: Capital Employed by Geography
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 2002 - 2007 by Sector C.A.G.R. 4,483 6,560 ∆ CE (2002-2007) Rest of the World 4% 3% 15 ( + 1%) 23% 18% Brazil 138 ( + 3%) • Increase in exposure in Other European countries 18% 23% 685 ( + 13%) Other Europe • Increa
Slide 9: Consolidated Results – 1st Half 2002
SONAE SGPS CONSOLIDATED RESULTS – 1st HALF 2002 Euro millions 1H 02 1H 01 Turnover 3,084.2 3,061.1 Operating Profit (EBIT) 59.2 63.4 Net Financial Charges (121.4) (82.9) Profit on Ordinary Activities (62.2) (19.5) Extraordinary Profits (4.2) 39.8 Associated Companies 3.7 0.7 Profit/ (Loss) before Ta
Slide 10: Turnover – 1st Half 2002
SONAE SGPS TURNOVER – 1st HALF 2002 Euro millions CONTRIBUTION BY SECTOR AND BY GEOGRAPHICAL AREA 6,386 5,751 Retailing 5,202 56% Brazil 21% Portugal 57% Shopping 3,075 Centres 2,585 3,061 3,084 Rest of 4% 2,255 Europe Telecoms 15% 12% Rest of the Wood Sonae World Based Capital 7% 1996 1997 1998 * 1
Slide 11: EBITDA – 1st Half 2002
SONAE SGPS EBITDA – 1st HALF 2002 Euro millions CONTRIBUTION BY SECTOR 36.9 0.2 (6.4) 276.8 34.0 Brazil 27.7 Portugal 94.1 90.3 Wood Based Retailing Shopping Telecoms Sonae Capital Holding & TOTAL Panels Centres Others # 11
Slide 12: Profit Before Minority Interests – 1st Half 2002
SONAE SGPS PROFIT BEFORE MIN. INTERESTS – 1st HALF 2002 Euro millions CONTRIBUTION BY SECTOR (32.0) 8.9 22.9 (10.9) (49.5) (2.4) (63.0) Wood Based Retailing Shopping Telecoms Sonae Capital Holding & TOTAL Panels Centres Others # 12
Slide 13: Balance Sheet – June 2002
SONAE SGPS BALANCE SHEET – 30 JUNE 2002 Euro millions 1H 02 1H 01 Fixed Assets 5,264.8 5,104.8 Stocks 722.8 778.0 Debtors 956.8 916.1 Cash and short term investments 523.2 452.6 Accrued income and prepayments 588.0 555.3 Total Assets 8,055.6 7,806.8 Shareholders’ Funds 653.2 1,004.0 Minority Interes
Slide 14: Total Assets – 1st Half 2002
SONAE SGPS TOTAL ASSETS - 1st HALF 2002 Euro millions 8,281 Shopping 7,874 8,056 Centres 13% 5,925 Retailing 4,944 27% Telecoms 18% Holding & Wood Based Others Panels 12% 805 833 ** 30% 1998 * 1999 * 2000 2001 1H 2002 * Pro-forma accounts considering the merger between Sonae Investimentos and Inpars
Slide 15: Gross Investment – 1st Half 2002
SONAE SGPS GROSS INVESTMENT – 1st HALF 2002 Euro millions CONTRIBUTION BY SECTOR AND GEOGRAPHICAL AREA 10 310 30 Brazil 73 12% 79 Rest of Europe 62 31% Portugal 56 56% Rest of the World 1% Wood Based Retailing Shopping Telecoms Sonae Capital Holding & TOTAL Panels Centres Others # 15
Slide 16: Net Debt – June 2002
SONAE SGPS NET DEBT – 30 JUNE 2002 Euro millions CONTRIBUTION BY SECTOR 911 3,528 100 567 333 861 756 Wood Based Retailing Shopping Telecoms Sonae Capital Holding & TOTAL Panels Centres Others # 16
Slide 17: 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) 191% 187% 215% 239% 3,377 3,497 3,900 3,528 172% 175% 3,173 159% 3,071 153% 2,851 149% 135% 131% 2,501 2,428 121% 124% 2,148 95% 93% 83% 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 18: Consolidated Financial Structure: Net Debt/EBITDA, Interest Cover
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.1x 6.0x 6.1x 5.8x 5.6x 5.6x 5.6x 4.7x 4.5x 4.4x 3.6x 3.7x 3.0x 3.1x 3.0x 3.1x 2.5x 2.4x 2.3x 2.1x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000
Slide 19: 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 20: Sonae Indústria
sonae indústria
Slide 21: Sonae Indústria Business Portfolio
(a) Euroresinas 100% Poliface SIR Resoflex 94.69% of voting rights 100% Tafiber Tafisa Espanha Taiber 100% Tafisa France SONAE INDÚSTRIA 98% Glunz 100% Tafisa UK TAFISA BUSINESS PORTFOLIO 91.23% (a) 67% Tafisa Canada SONAE INDUSTRIA 63% Tafisa Brasil 100% Tafisa South Ifloma Africa 50% Gescartão (65
Slide 22: Indústria Vision and Mission
SONAE INDÚSTRIA VISION AND MISSION Sonae Indústria is the world leader in the wood based panels industry, creating value for its shareholders. After concluding a long and intensive investment plan in 2001, 2002 will be the year of consolidation, maximizing the use of capacity installed. Sonae Indúst
Slide 23: Development and Investment – Main Drivers
SONAE INDÚSTRIA DEVELOPMENT AND INVESTMENT - MAIN DRIVERS Main drivers of turnover growth and improvement in operational margins: – Investment in new production capacity 9 – Restructuring 9 – Developing operational synergies 9 2001: 2002: Investment Plan Business Completion Consolidation # 23
Slide 24: Indústria Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE Europe North America Portugal Canada Spain UK France Germany South America Africa South Africa Brazil Mozambique Gabon 44 Industrial sites in 10 Countries # 24
Slide 25: Wood Based Panels Production Capacity
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY (‘000 cum/year) 8,471 8,241 7,276 5,661 + 45% 1999 2000 2001 2002E # 25
Slide 26: Turnover – 1st Half 2002
SONAE INDÚSTRIA TURNOVER – 1st HALF 2002 By Product By Market Others Rest of the World Plywood 18% Portugal 7% 8% Value Added 12% Products 14% South Africa MDF Spain Hardboard 3% 23% 18% 2% South America 5% Surfaced North America Particleboard 7% France 25% 15% 14% UK Flooring OSB 7% 5% 1% Germany 1
Slide 27: EBITDA Margin – Iberia and Rest of Europe
SONAE INDÚSTRIA EBITDA MARGIN – IBERIA AND REST OF EUROPE Iberia France 17% 17% 17% 16% 16% 16% 15% 15% 15% 14% 5% 4% 2% 1% 0,4% -2% -1% -1% -1% -1% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000 Year 2001 2002 UK Germany 11% 9% 7% 2% 5% 5% 5% 5% 1% 1%
Slide 28: EBITDA Margin – Rest of the World
SONAE INDÚSTRIA EBITDA MARGIN – REST OF THE WORLD Canada Brazil 48% 44% 40% 38% 35% 32% 32% 32% 32% 29% 25% 23% 22% 20% 18% 22% 20% 19% 17% 13% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000 Year 2001 2002 South Africa 27% 20% 21% 19% 19% 15% 9% 4Q 1Q
Slide 29: Indústria Financial Structure: Net Debt and Gearing
SONAE INDÚSTRIA CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 243% 904 867 872 806 822 159% 164% 768 777 148% 151% 151% 748 756 143% 131% 126% 121% 595 112% 111% 107% 107% 96% 70% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q
Slide 30: Indústria Financial Structure: 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 3.4x 3.1x 3.1x 2.8x 2.5x 2.4x 2.1x 2.2x 1.9x 1.6x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year
Slide 31: Sonae Produtos e Derivados Florestais
sonae produtos e derivados florestais
Slide 32: Produtos e Derivados Florestais – Pulp & Paper
SONAE PRODUTOS E DERIVADOS FLORESTAIS PUPL & PAPER SPDF * 100% SONAE WP 29.18% PORTUCEL, SA Main Operational Indicators of Portucel: - Produces BEKP (Bleached Eucalyptus Kraft Pulp) pulp and paper - Total pulp production capacity is approximately 1,220,000 tonnes/year. - Total uncoated woodfree pape
Slide 33: Sonae Distribuição
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Slide 34: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 89.9% 100% Modelo SONAE Modelo DISTRIB. Continente BRASIL Continente Food Retail Portugal Food and Non-Food Retail Brazil Non-Food Retail BIG Continente Modalfa BIG Eletroeletrónico Modelo Worten Cândia (S.Paulo) Modelo Bonjour Max Mat (50
Slide 35: Distribuição Vision and Mission
SONAE DISTRIBUIÇÃO VISION AND MISSION Modelo Continente is the market leader in Portugal in food retail (hyper and mini-hyper formats). In Brazil, Modelo Continente is the leader in the Southern market and number 3 in the national ranking. Modelo Continente aims to expand its business frontiers, tak
Slide 36: 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 Category management Development of neighbourhood and more convenience formats Information systems development Synergic develo
Slide 37: Distribuição Current Position – 1st Half 2002
SONAE DISTRIBUIÇÃO CURRENT POSITION – 1st HALF 2002 Brazil y Hypers and Supers y South Region Market Leader (3rd National) y 177 stores (451,000 sqm) Portugal y 731 M.€ Gross Sales (1,588 M.R$) y Hypers and Supers y EBITDA/Net Sales 4.5% y Non food formats y Market Leader y 253 stores (410,000 sqm)
Slide 38: Distribuição Business Portfolio – 1st Half 2002
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1st HALF 2002 Portugal Brazil 105 stores 298,000 sqm 1,043 M. € gross sales Continente Rio Grande do Sul Bonjour Paraná S. Paulo Modelo 166 stores Food based 442,000 sqm S. Catarina formats 724 M. € gross sales Worten BIG Eletroelectrónico Non food based Modal
Slide 39: Portugal – Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Food based formats – Relative Market Share 32% 20% 12% 11% 11% 8% Sonae JM Intermarché Auchan Carrefour Lidl and Minipreço Source: UCDR’s Market Share; Modelo Continente estimates 12 month average, as of June 2002 Food based formats – Market Dynamic
Slide 40: Portugal – Portfolio Analysis
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS (a) Gross sales (M. €) Sales Area (´000 sqm) EBITDA Margin (%) 2,657 402 2,467 410 9.5% 381 327 9,1% 1,245 8.3% 1,179 8.1% 2000 2001 1H 2002 2000 2001 1H 2002 2000 2001 1H 2002 (a) Maxmat is accounted for by the equity method of accounting. Thus its s
Slide 41: Portugal – Portfolio Analysis: Food and Non Food Formats
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO ANALYSIS Gross sales (M. €) Sales area (´000 sqm) EBITDA margin (%) 9.7% Food formats 9.4% 2,119 2,235 293 262 279 298 8.4% 8.4% 1,017 1,043 2000 2001 1H 2002 2000 2001 1H 2002 2000 2001 1H 2002 Non food formats 8.8% 422 109 6.6% 348 112 7.8% 102 65 5.9% 202 1
Slide 42: Brazil – Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL Total Area (‘000 km2) 8,514 Population (‘000) 169,799 GDP 2001 (b EUR) 564 per capita GDP (EUR) 3,320 North SÃO PAULO • Total Area (´000 km2) 248 • Population (´000) 37,032 (22% total) • GDP 2001 (b EUR) 197 (36% total) • per capita GDP (EUR)
Slide 43: Brazil – Relative Market Share
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Relative market share (1st Half 2002) Rio Grande do Sul Paraná 338% 8% 21% 10% 35% 35% 15% 14% Sonae 2nd 3rd Sonae 2nd 3rd Santa Catarina São Paulo 36% 16% 16% 10% 38% 19% (…) 4% 4% 1st Sonae 3rd 1st 2nd Sonae (4th) # 43 MC estimates
Slide 44: Brazil – Portfolio Analysis
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO ANALYSIS Gross sales (M. €) Sales Area (´000 sqm) EBITDA Margin (%) 1,671 1,651 445 7.7% 451 7.4% 402 430 6.7% 4.5% 839 731 2000 2001 1H 2002 2000 2001 1H 2002 2000 2001 1H 2002 # 44
Slide 45: Distribuição Financial Structure: Net Debt and Gearing
SONAE DISTRIBUIÇÃO CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 1,101 316% 933 884 897 297% 860 284% 266% 789 764 728 643 204% 193% 524 96% 93% 70% 75% 77% 82% 80% 64% 64% 43% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q
Slide 46: Distribuição Financial Structure: 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 3.5x 3.5x 3.3x 2.8x 2.9x 2.8x 2.7x 2.5x 2.5x 2.4x 2.2x 2.4x 1.7x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Y
Slide 47: Distribuição Business Strategy – Outlook
SONAE DISTRIBUIÇÃO BUSINESS STRATEGY – OUTLOOK GROWTH VALUE PROPOSAL Strengthening of leadership Increase in operational in the food based market efficiency Take advantage of the Turn the customer potential of non food based relationship into a competitive formats advantage # 47
Slide 48: Sonae Imobiliária
SONAE IMOBILIARIA sonae ile dilelar:
Slide 49: Imobiliária Business Portfolio
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Germany Brazil Europe Austria CascaiShopping1 (65)2 Centro Colombo1 (120)2 Parque Principado (25%) Shopping Penha (14%) (70)2 - Spain 3 DO Dortmund CoimbraShop
Slide 50: Imobiliária Vision and Mission
SONAE IMOBILIÁRIA VISION AND MISSION Sonae Imobiliária is the dominant leader in the Portuguese market, in Shopping Centres development, management and investment. Focus efforts on other markets where it already operates, namely Spain, Greece, Italy, Germany and Brazil. Maintain a partnership approa
Slide 51: 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 Maintain policy of joint-ventures and Leisure Centre industry and international diversification of acti
Slide 52: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES Number GLA ( ‘000 sqm) Shopping Centres in operation 13 597 Portugal Spain 2 97 Brazil 6 218 21 912 Shopping Centres under development Portugal 4 71 Spain 4 124 Greece 2 107 Rest of Europe 3 109 Brazil 1 22 14 433 Shopping Centres under management Portugal 866 Spai
Slide 53: Partnership Approach – Portugal
SONAE IMOBILIÁRIA PARTNERSHIP APPROACH - PORTUGAL With the objective of sharing risk and return but also know-how, Sonae Imobiliária has adopted a partnership approach and has established joint-ventures for the development and investment in properties: % Sonae Centers Partners Countries Imobiliária
Slide 54: Partnership Approach – International
SONAE IMOBILIÁRIA PARTNERSHIP APPROACH - INTERNATIONAL % Sonae Centers Partners Countries Imobiliária Plaza Mayor, Malaga, Spain 75% Castle Management (25%) UK Grupo LAR Grosvenor (25%) Spain Parque Principado, Oviedo, Spain 25% Whitehall Fund (50%) USA Avenida M 40, Madrid, Spain 60% Grupo Eroski S
Slide 55: Development – Portugal
SONAE IMOBILIÁRIA DEVELOPMENT - PORTUGAL The total of projects under development as at 30/06/2002 corresponds to an investment of 1,175 M.€, of which 844 M.€ are attributable to Sonae Imobiliária, as follows: 71 M.€ , in Portugal, Setúbal Retail Coimbra Retail CascaiShopping Estação Viana Parque Atl
Slide 56: Development – Spain
SONAE IMOBILIÁRIA DEVELOPMENT - SPAIN 144 M.€ , in Spain, Avenida SPAIN Málaga Outlet Pinto Toledo Shopping M 40 Location Málaga Madrid Madrid Toledo Opening Date Spring 2004 Spring 2003 Spring 2003 Spring 2004 GLA (sqm) 16,700 45,500 47,095 35,000 Gross Investment (Euro) 30.7 million 75.9 million 4
Slide 57: Development – Rest of Europe
SONAE IMOBILIÁRIA DEVELOPMENT - REST OF THE EUROPE 600 M.€, in the rest of Europe,... Aegean Pylea 3 DO OTHER EUROPEAN MARKETS Brescia Centre Vienna Mitte Park Centre Dortmund Dortmund, Location Athens, Greece Salonica, Greece Brescia, Italy Vienna, Austria Germany Opening Date Spring 2004 Spring 20
Slide 58: Development – Brazil
SONAE IMOBILIÁRIA DEVELOPMENT - BRAZIL and 29 M.€ in Brazil. BRAZIL Boavista Shopping Location Campinas (SP), Brazil Opening Date October 2003 GLA (sqm) 22,000 Gross Investment (Euro) 30.0 million Sonae Imobiliária’s shareholding 97.5% # 58
Slide 59: Shopping Centre Performance
SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (000 sqm) Average Monthly Sales per sqm in 1H 02 (EUR) 120 Centro Colombo 420 107 Parque Dom Pedro * 340 72 NorteShopping 405 65 CascaiShopping 424 56 Arrábida Shopping * 402 56 GaiaShopping 267 48 Vasco da Gama 406 42 AlgarveShopping
Slide 60: Sales Growth 1st Half 02/01
SONAE IMOBILIÁRIA SALES GROWTH 1st HALF 02/01 GuimarãesShopping 15% NorteShopping 15% Sintra Retail Park 15% Viacatarina 13% MaiaShopping 12% CascaiShopping 7% GaiaShopping 7% CoimbraShopping 7% Vasco da Gama 5% Centro Colombo 3% # 60
Slide 61: Imobiliária Management
SONAE IMOBILIÁRIA MANAGEMENT Sonae Imobiliária manages 1,285 thousand sqm of GLA in Portugal, Spain and Brazil: a growth of 23% compared to 2001 Managed GLA trend (000's sqm) GLA under management by geographical area Average increase of 123 thousand sqm 1,285 of GLA / Year 1,128 Brazil 17% 959 893 1
Slide 62: Consolidated Financial Structure: NAV and Loan/Value
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE NAV of Total Properties Loan / Value (values in Euro million) (NAV of Sonae Imobiliária’s share) 934 958 752 35% 643 31% 29% 459 22% 379 13% 12% 1997 1998 1999 2000 2001 1H 2002 1997 1998 1999 2000 2001 1H 2002 # 62
Slide 63: Imobiliária Financial Structure: Net Debt and Gearing
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 160% 153% 469 467 148% 141% 141% 436 424 420 130% 406 119% 112% 105% 336 97% 319 289 258 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 64: Imobiliária Financial Structure: Net Debt/EBITDA, Interest Cover
SONAE IMOBILIÁRIA CONSOLIDATED FINANCIAL STRUCTURE (a) Net Debt / EBITDA (b) Interest Cover (EBITDA / Interest Paid) 8.2x 6.1x 5.8x 5.7x 5.7x 5.6x 5.6x 5.4x 5.0x 5.1x 3.6x 3.5x 3.6x 3.4x 3.1x 3.0x 3.0x 2.9x 2.5x 2.6x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 200
Slide 65: Sonae Com
sonae com
Slide 66: Com Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM (1) 45.89% 56.67% 100% 100% Software Mobile Fixed Data Multimedia and and IT and Internet Systems Integration Optimus Novis Publico We Do Consulting (100%) Clix (56.67%) Enabler (100%) 20.00% 43.33% 43.33% France Telecom (1) 51.88% of voting rights # 66
Slide 67: Com Vision and Mission
SONAE COM VISION AND MISSION SonaeCom aims to be the recognized expert leading alternative communications services provider in Portugal to corporate, SME, residential and wholesale customers offering mobile, fixed and internet access as well as applications and content. To achieve this goal and to s
Slide 68: Com Current Position of Business
SONAE COM CURRENT POSITION OF BUSINESS Optimus - is the third mobile operator to start business in Portugal with a market share of 22.3%. Optimus aims to lead the development of new mobile data and content markets. Novis - is concentrating its efforts on winning new customers equally between direct
Slide 69: Com Looking Forward
SONAE COM LOOKING FORWARD CONTEXT STRATEGIC GUIDELINES . Entrance of a 4th mobile operator . SonaeCom will achieve growth in turnover and improve operating profitability . Changes in interconnect rates . SonaeCom will continue to seek . Effective competition in fixed market ways of reducing costs wi
Slide 70: SonaeCom – Active Customers
SONAE COM SONAECOM – ACTIVE CUSTOMERS Active customers continue to grow quarter on quarter. At the end of 1H 02, SonaeCom had more than 2.4 million active customers spread across mobile, fixed and Internet. 2,405 2,432 2,326 51 56 Clix Público 2,153 54 233 244 2% 1,971 56 232 10% 140 143 1,814 216 1
Slide 71: SonaeCom – Total Traffic Data
SONAE COM SONAECOM – TOTAL TRAFFIC DATA Between mobile and fixed voice, Internet and data traffic, SonaeCom generated almost 2.6 billion minutes of traffic in 1st Half 2002. 1,323 1,258 1,221 1,173 1,105 473 Clix 987 463 433 469 36% 417 395 Optimus 212 129 168 47% 130 127 94 610 623 627 638 561 498
Slide 72: Optimus – Subscriber Growth and Market Share
SONAE COM OPTIMUS – SUBSCRIBER GROWTH AND MARKET SHARE Optimus subscribers, EOP (000’s) Overall market share, EOP (000’s) Optimus Vodafone TMN 1,970 2,000 1,916 1,791 4,223 4,671 4,931 5,193 5,768 6,664 7,136 7,561 8,083 8,608 8,790 8,956 1,650 1,511 1,410 46% 45% 45% 45% 45% 44% 44% 44% 45% 45% 45%
Slide 73: Optimus – ARPU
SONAE COM OPTIMUS – ARPU 40 ARPU (Euro/sub/month) 36 32 Optimus Euros Vodafone 28 TMN 24 20 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 1999 Year 2000 Year 2001 Year 2002 Year 2002 Year 1999 Year 2000 Year 2001 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Optimus 31.0 30.2 29.5 31.9 33.3 33.9 29.7 27.4 28
Slide 74: Novis – Customer Growth and Market Share
SONAE COM NOVIS – COSTUMER GROWTH AND MARKET SHARE Total Active costumers, EOP (000’s) Traffic on Novis Network (million of minutes) 685 Total Indirect Access Active Customers (EoP) thousands 631 598 Pre-selected customers 563 544 143 489 139 124 126 115 89 94 67 60 51 55 23 12 4 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 75: Novis – Network and Market Penetration
SONAE COM NOVIS – NETWORK AND MARKET PENETRATION Current Network Roll-Out Altnet Market Share Business Segment Total Novos Operadores Novis Jazztel Oni Vodafone Outras Fibre Backbone Kms (EOP) 24,4 22,4 Extension 899 19,4 19,2 19,9 18,9 18,8 Fibre Pairs Installed 4,033 17,4 14,8 11,8 MAN Kms Lisbon
Slide 76: Matrix – Internet and Multimedia
SONAE COM MATRIX – INTERNET AND MULTIMEDIA Clix Active Dial-up users and connection time Pageviews per month (millions) Active Dial-up users Total minutes connection time 250 500 Clix Publico.pt 473 469 463 12 433 450 417 232 244 233 12 12 395 12 200 216 400 370 203 189 12 350 306 309 177 13 150 300
Slide 77: Com Financial Progress: Turnover
SONAE COM FINANCIAL PROGRESS Euro millions Turnover – Stand alone Accounts Optimus 171 Novis 40 166 155 37 37 146 143 131 134 125 109 25 93 23 21 19 10 7 6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000 Year 2001 2002 Clix * Publico 10 10 10 10 9 9 8 8
Slide 78: Com Financial Progress: EBITDA
SONAE COM FINANCIAL PROGRESS Euro millions EBITDA Eliminating SAC deferral – Stand alone Accounts Optimus Novis 34 33 24 21 17 17 15 16 12 -5 5 -8 -7 -8 -11 -11 -12 -12 -14 -14 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000 Year 2001 2002 Clix Publico
Slide 79: Com Financial Progress: CAPEX
SONAE COM FINANCIAL PROGRESS Euro millions CAPEX (excl. capitalised costs) * Optimus Novis Matrix 131 ** 16 11 11 11 3.4 10 54 8 8 2.4 2.4 2.1 5 4 1.5 32 25 26 27 23 1.0 1.0 21 19 20 3 0.5 0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001
Slide 80: Com Financial Structure: Net Debt and Gearing
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE Net Debt Net Gearing (values in Euro million) Net Debt / (Shareholders’ Funds + Minority Interests) 548 572 513 472 129% 457 124% 429 115% 116% 380 100% 104% 348 95% 86% 91% 82% 86% 79% 74% 58% 216 35% 142 23% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 81: Com Financial Structure: Net Debt/EBITDA, Interest Cover
SONAE COM CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 10.8x 9.5x 9.2x 8.2x 8.2x 7.7x 6.5x 4.2x 4.2x 3.7x 3.7x 3.1x 3.2x 2.5x 2.6x 1.9x 2.1x 1.5x 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Year 2000 Year 2001 2002 Year 2000 Year 2001 2002
Slide 82: Sonae Capital
sonae capital
Slide 83: Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Spred Spinveste Choice Car Invicta Capitais Turismo Privados Hotel Management Joint -Ventures Construction, Car Hire Transport Resort Manag. & & Risk Capital Real Estate & Retailing & Services Develop. & Engineering Leisure Fitness & Sport Travel Solinc
Slide 84: 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