Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (April 2005)
55 slides from Sonae Sgps Sa's investor presentation, April 2005
Slide 1: Sonae SGPS April 2005
sonae sgps APRIL 2005 * * Data as of 31 December 2004 under Portuguese GAAP (POC)
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 portfolio
Slide 4: Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 97.02% 50% 98.06% (1) 67.04% 82.46% 100% Sonae Modelo Sonaecom Sonae Indústria Continente Sonae Sierra Capital Wood Based Food Retail Shopping Centres Telecommunications Services (4) Products Non Food Retail SIERRA BRAZIL IMOCAPITAL (2) CHOICE CAR S. DEVELOP.
Slide 5: Worldwide Presence
SONAE SGPS WORLDWIDE PRESENCE North America Europe Canada Portugal Spain United Kingdom France Germany Switzerland Greece Italy South America Africa Brazil South Africa Gabon Sonae is present in 12 countries, with 58 thousand employees #4
Slide 6: 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 7: Sonae Indústria
sonae indústria
Slide 8: Sonae Indústria Guidelines
SONAE INDÚSTRIA GUIDELINES Sonae Indústria is the leading world manufacturer of Wood Based Products in terms of installed capacity and global presence A commitment to the customer, to sustainable development and to MISSION globalization of the businesses Be an autonomous organisation focused on oper
Slide 9: Sonae Indústria Business Portfolio
Euroresinas 100% Movelpartes SIR Resoflex 100% Tafiber Tafisa Spain Taiber 100% Tafisa France SONAE INDÚSTRIA 99% Glunz AG 100% Tafisa UK TAFISA 92.66% BUSINESS PORTFOLIO 100% Tafisa Canada SONAE INDUSTRIA 54% Tafisa Brazil 100% Tafisa South Africa #8
Slide 10: Global Presence
SONAE INDÚSTRIA GLOBAL PRESENCE 35 Production sites in 8 Countries Canada Portugal United France Particle Board Kingdom Particle Board Particle Board Surfaced Board MDF Particle Board MDF Surfaced Board Surfaced Board Surfaced Board High Pressure Laminates OSB Germany Particle Board MDF Brazil Surfa
Slide 11: Wood Based Panels Production Capacity and Sales
SONAE INDÚSTRIA WOOD BASED PANELS PRODUCTION CAPACITY AND SALES Production Capacity (‘000 m3/year) * +40% After a heavy investment period (EUR 1.2 billion), production 8.371 6.942 7.482 7.339 7.339 capacity was reduced due to the 5.255 shut-down of old and obsolete plants, as initially planned. 1999
Slide 12: Sonae Indústria Consolidated Figures
SONAE INDÚSTRIA CONSOLIDATED FIGURES Million euro Turnover Turnover by Product Gescartão 11% MDF 1,580 18% 1,502 1,480 1,441 1,294 Others 21% Particle Board 17% Hard Board 1% OSB Surfaced Board 8% 24% 2000 2001 2002 2003 2004 Turnover by Market Others Portugal 227 14,0% 11,0% EBITDA South Africa 173
Slide 13: Sonae Distribuição
ye SONAE DISTRIBUIGAO Je)at-(-5 GIStriDUICaAO
Slide 14: 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. In Brazil, it is the leader in the Southern market and number 4 in the national ranking. Expand its business frontiers, taking advantage of
Slide 15: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO MODELO CONTINENTE 100% 96.56% Modelo SONAE DISTRIB. Continente BRAZIL Food Retail Non-Food Retail Food Retail Brazil Continente Modalfa BIG* Modelo Worten Mercadorama (Paraná and Santa Catarina) Modelo Bonjour Max Mat (50%) Nacional (Rio Grande do Sul) SportZone
Slide 16: Current Position - December 2004
SONAE DISTRIBUIÇÃO CURRENT POSITION – 31 December 2004 Brazil y Hypers and Supers y Non food formats y Southern Region Market Leader (4th National) Portugal y 170 stores (437,000 sqm) y Hypers and Supers y 1,202 M.€ Gross Sales y Non food formats y Market Leader y 282 stores (433,000 sqm) y 2,957 M.
Slide 17: Portugal - Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL - RETAIL MARKET Food based formats – Relative Market Share x 1,6 30% x 2,4 x 2,7 x 2,7 Mod. Cont. 2nd 3rd 4th 5th Source: UCDR’s Market Share; Modelo Continente estimates. 12 month average, as of December 2004 Food based formats – Market Dynamics Sales Area Sales Inflatio
Slide 18: Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL - RETAIL MARKET Food based formats: Southern market – Relative Market Share x 2,5 27% x 3,5 x 4,5 x 5,1 SDB 2nd 3rd 4th 5th Source: Modelo Continente estimates. December 2004 Food based formats – Market Dynamics S. Paulo Sonae Paraná Abras Santa Catarina Inflation Rio Grand
Slide 19: Sonae Distribuição Consolidated Figures
SONAE DISTRIBUIÇÃO CONSOLIDATED FIGURES Gross Sales (M. €) EBITDA Margin (%) 4,308 4,136 4,159 4,069 3,984 8.8% 8.4% 8.4% 8.3% 7,9% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Sales Area (‘000 sqm) Number of Stores 846 860 860 870 760 427 435 452 413 372 2000 2001 2002 2003 2004 2000 2001 2002
Slide 20: Sonae Sierra
sonae sierra * * Formerly Sonae Imobiliária
Slide 21: 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, investing in and MISSION managing Shopping Centres Conc
Slide 22: Shopping Centres
SONAE SIERRA SHOPPING CENTRES Currently, Sonae Sierra… … owns or co-owns… 34 Shopping Centres, equal to 1.4 million m2 of GLA 17 in Portugal (14 Shopping Centres, 1 Retail Park and 2 Galleries) (652 thousand m2) 10 in Spain (447 thousand m2) 7 in Brazil (263 thousand m2) … manages… a total of 1.8 mi
Slide 23: Portugal - Shopping Centres
SONAE SIERRA PORTUGAL - Shopping Centres in operation and under development Estação Viana (Nov. 2003) – (GLA: 18,545 m2) MaiaShopping (Nov. 1997) – (GLA: 28,949 m2) Sonae Sierra (100%) Sonae Sierra (100%) 1 GuimarãeShopping (Feb. 1995) – (GLA: 26,770 m2) NorteShopping (Oct. 1998) – (GLA: 72,024 m2)
Slide 24: Spain - Shopping Centres
SONAE SIERRA SPAIN - Shopping Centres in operation and under development Parque Principado (Apr. 2001) – (GLA: 74,780 m2) Valle Real (Nov. 1994) – (GLA: 47,830 m2) Zubiarte (Nov. 2004) – (GLA: 20,577 m2) Sonae Sierra (50%) / Whitehall Fund and Lar Grosvenor (50%) Sonae Sierra (50%) / ING Real Estate
Slide 25: Other Europe - Shopping Centres under development
SONAE SIERRA OTHER EUROPE - Shopping Centres under development Mediterranean Cosmos ( Autumn 2005) Caselle (Autuumn 2007) Salonika Torino (GLA: 46,500 m2) (GLA: 86,000 m2) Owner: Sierra Charagionis (39.9%) / Owner: Sonae Sierra (100%) Lamda Development (60.1%) Aegean Park (Autumn 2007) Athens Frecci
Slide 26: Brazil - Shopping Centres
SONAE SIERRA BRAZIL - Shopping Centres in operation and under development Pátio Brasil (Oct. 1997), Brasília – (GLA: 31,216 m2) Owner: Sonae Sierra (5.2%) / Others (94.8%) Parque D. Pedro (Mar. 2002) – (GLA: 109,324 m2) Owner: Sonae Sierra (97.9%) / Enplanta Engenharia (2.1%) Boavista Shopping (27 A
Slide 27: Sierra Consolidated Financial Structure
SONAE SIERRA CONSOLIDATED FINANCIAL STRUCTURE (a) Million euro Net Profits before Min. Int. EBITDA 108 98 96 249 74 149 127 55 121 63 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Market Value of Investments NAV per Share (€) 3,101 32.60 2,672 2,390 29.16 27.67 1,802 24.90 1,754 1,376 1,469 1,32
Slide 28: Sierra Operational Indicators
SONAE SIERRA OPERATIONAL INDICATORS Total Managed GLA (000’s m2) GLA under management 1,839 (geographical breakdown) Brazil 1,564 14% Italy 1,517 5% Portugal 51% Spain 30% 2002 2003 2004 Sales and Visits 3,212 2,865 382 410 2003 2004 Sales (million euro) Visits (millions) # 27
Slide 29: Sonae Com
sonae com
Slide 30: Sonae Com 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, Enabler, Bizdirect and Mainroad) Sonaecom’s ambition is to be the best com
Slide 31: Sonaecom Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAECOM 100% 100% 100% Software Media & Telco Systems Integration (1) Publico We Do Consulting (100%) – Telecom 46.29% 56.67% 56.67% Systems & Software Developer Enabler (64%) – Retail Systems Integrator & Software Developer Mobile Fixed Internet Mainroad (57%) – Provid
Slide 32: Sonaecom Consolidated Key Figures
SONAE COM SONAECOM - CONSOLIDATED KEY FIGURES (a) Million euro Turnover EBITDA 201 880 838 146 789 733 72 2001 2002 2003 2004 2001 2002 2003 2004 (55) Free Cash-Flow CAPEX 62 35 197 2001 2002 2003 2004 (55) 127 123 122 (268) 2001 2002 2003 2004 (a) Sonaecom presented in 2003, for the first time, its
Slide 33: Sonaecom Operational Indicators
SONAE COM OPERATIONAL INDICATORS By the end of 2004, Sonaecom had 2.5 million customers and generated 7.2 billion minutes of voice, data and internet traffic Novis 38% Optimus Novis 87% 2.5 million 7% 7.2 billion customers minutes Clix 4% Clix 24% Publico 2% Optimus 38% # 32
Slide 34: Optimus - Mobile Competitive Landscape
SONAE COM OPTIMUS - MOBILE COMPETITIVE LANDSCAPE Optimus entered the market 6 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% Data is a key element of Optimus’ strategy By the end of 2004,
Slide 35: Novis - The Fixed Altnet Leader
SONAE COM NOVIS - THE FIXED ALTNET LEADER Novis leads altnets in its key market segments: SME and SoHo; and is the second largest provider of wholesale traffic; Novis core segments are SoHos and SMEs, with a clear focus on providing direct access solutions; One of Novis’ key activities is the optimi
Slide 36: Internet and Media - Clix and Público
SONAE COM INTERNET AND MEDIA - CLIX AND PÚBLICO Clix Was launched in 1999 as an access based ISP, and rapidly achieved clear leadership in the only liberalized Internet market in Portugal – narrowband However, with broadband solutions, heavy Internet users are migrating to the new broadband offers w
Slide 37: Software & Systems Integration
SONAE COM SOFTWARE & SYSTEMS INTEGRATION The Software & Systems Integration division brings together leading specialists in telco and retail systems integration, namely WeDo and Enabler Apart from a strong foothold in the Portuguese market, Enabler and WeDo have important international customers in
Slide 38: Sonae Capital
sonae capital
Slide 39: Sonae Capital Guidelines
SONAE CAPITAL GUIDELINES Sonae Capital generates options and future growth in construction and engineering, tourism, transport and services Concentrate its strategic investments within sectors undergoing VISION consolidation and develop businesses to take a leading role in their industries In Touris
Slide 40: Sonae Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Hotel Management Construction & Resort Manag. Engineering, & Develop. Joint -Ventures Transport Insurance Car Hire Other Leisure &Residential Risk Capital & Logistics Brokerage & Retailing Businesses Fitness & Sport Development Travel Solinca Hotelaria
Slide 41: Sonae Capital Aggregated Figures
SONAE CAPITAL AGGREGATED FIGURES Million euro Refrigeration, Air Conditioning Turnover and Cleaning Transport and Services Logistics 6% 832 6% 662 758 684 626 553 653 554 Glass Containers Plywood1 22% 17% Residential 2000 2001 2002 2003 2004 Development Car Hire and 2% Retailing EBITDA 12% 101 85 Co
Slide 42: Sonae SGPS
sonae sgps
Slide 43: Consolidated Profit and Loss Account
SONAE SGPS CONSOLIDATED PROFIT AND LOSS ACCOUNT Million euro For the year ended 31 December 2004 31.12.2004 31.12.2003 Turnover 6,634.0 6,259.7 Operational Cash-Flow (EBITDA) 778.7 636.5 Operational Profit (EBIT) * 355.1 203.2 Net Financial Charges (167.1) (228.8) Profit/(Loss) on Ordinary Activitie
Slide 44: Turnover - Sector and Geographical Breakdown
SONAE SGPS TURNOVER Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 6,634 Retail 6,386 6,276 6,260 53% 5,751 Portugal Brazil 5,202 60% 16% Shopping Centres 5% Rest of Europe 16% Telecom. 13% Sonae Rest of the Capital & World Wood Holding 8% Based 6% 1999 * 2000 2001 2002 2003 2004 Products 23% * Pro-
Slide 45: EBITDA - Sector Breakdown
SONAE SGPS EBITDA Million euro SECTOR BREAKDOWN 180 7 779 81 284 227 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 44
Slide 46: Net Profit Before Minority Interests
SONAE SGPS NET PROFIT BEFORE MINORITY INTERESTS Million euro SECTOR BREAKDOWN 73 270 18 38 118 23 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 45
Slide 47: Consolidated Balance Sheet
SONAE SGPS CONSOLIDATED BALANCE SHEET Million euro 31 December 2004 31.12.2004 31.12.2003 Fixed Assets * 5,048.0 5,037.9 Stocks 672.7 680.1 Debtors 829.5 783.0 Cash and short term investments 523.1 651.6 Deferrals 482.0 522.1 Total Assets 7,555.3 7,674.7 Shareholders’ Funds * 682.1 582.5 Minority In
Slide 48: Total Assets - 31 December 2004
SONAE SGPS TOTAL ASSETS – 31 December 2004 Million euro 8,281 Shopping 7,874 7,968 Centres 7,675 7,555 19% 751 7,123 5,925 651 Telecom. 17% 5,274 Retail 29% Sonae Capital and Holding 14% Wood Based 1999 * 2000 2001 2002 2003 2004 ** Products 21% * Pro-forma accounts considering the merger between So
Slide 49: Gross Investment
SONAE SGPS GROSS INVESTMENT Million euro SECTOR AND GEOGRAPHICAL BREAKDOWN 169 741 Brazil 10% 115 271 Rest of Europe 29% 161 Portugal 25 Rest of the 60% World 1% Wood Based Retail Shopping Telecom. Sonae Capital TOTAL Products Centres and Holding # 48
Slide 50: Net Debt - December 2004
SONAE SGPS NET DEBT – 31 December 2004 Million euro SECTOR BREAKDOWN 720 2,503 308 546 506 423 Wood Based Retail Shopping Centres Telecom. Sonae Capital TOTAL Products and Holding # 49
Slide 51: 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) 3,899 282% 3,692 3,600 253%261% 3,497 3,528 3,377 3,332 239% 3,173 3,294 3,269 236% 3,071 215% 222% 220%220% 2,860 207% 2,818 191%187% 2,716 193% 2,574 175%
Slide 52: Net Debt / EBITDA and Interest Cover
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Debt / EBITDA (a) Interest Cover (EBITDA / Interest Paid) 6.0x 6.1x 5.8x 5.6x 5.7x 5.7x 5.6x 5.6x 5.2x 5.1x 5.1x 5.0x 4.6x 4.4 x 4.0 x 4.0 x 3.9x 3.6 x 3.2 x 3.4x 3.0x 3.1x 3.1x 2.8x 2.6x 2.5x 2.4x 2.5x 2.4x 2.3x 2.1x 2.1x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 53: Consolidated Financial Structure 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 Net Debt / EBITD
Slide 54: Sonae Group Strategic Priorities
SONAE SGPS SONAE GROUP STRATEGIC PRIORITIES Continue to deliver operational improvements Consolidate market leadership positions Development of new shopping centres in target markets Spin-off of Sonae Indústria Reposition the Group in the equity markets # 53
Slide 55: www.sonae.pt
SONAE SGPS This presentation is available at the official Sonae SGPS website www.sonae.pt