Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Q1 2001 Earnings Presentation
58 slides from Sonae Sgps Sa's earnings presentation, May 2001
Slide 1: Sonae SGPS May 2001
sonae sgps MAY 2001 www.sonae.pt
Slide 2: Sonae SGPS Business Portfolio
SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 85.45% 69.85% 51.19% 79.6% 100% 100% Sonae Sonae Sonae Sonae Com Indústria Distribuição Imobiliária Sonae Sonae Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Forestry Non Food Retail (development, commun
Slide 3: Business Portfolio Configuration
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Emerging Businesses Growth Businesses Mature Businesses Options for potential future development High growth businesses Mature businesses with with potential for strong profit
Slide 4: Business Portfolio Configuration: Sonae Distribuição (Retail)
SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE DISTRIBUIÇÃO (RETAIL) SONAE also aims to foster the dynamics of growth within each business by stimulating the development of similarly balanced portfolios within each sector Horizon 3 Horizon 2 Horizon 1 B2C Portugal Food Retail São Paulo Specialise
Slide 5: 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 Wood Based Panels . Complete restructuring in France and Germany by end 2001 . Consolidate high growth / high profitability
Slide 6: Value Creation by Sonae 1986-2001
SONAE SGPS VALUE CREATION BY SONAE 1986 - 2001 Total Return for Shareholders Market Capitalization Sonae SGPS PSI 30 (Euro millions) 4,764 7.000 6.577 6.000 5.143 5.000 3.924 3.721 4.000 3.303 2,071 3.000 2.546 2.000 770 739 1.000 618 0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 99 99 99 00 00 00 00
Slide 7: Business Portfolio Development: Capital Employed by Sector
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 1999 - 2004 by Sector 2.400 6.000 ∆ CE Tourism 2% 2% • 20% c.a.g.r. in capital 100 ( + 22%) employed Telecoms 8% 19% 950 ( + 42%) Wood Based 27% 20% • Strong increase in exposure Panels 400 ( + 11%) to Shopping Cent
Slide 8: Business Portfolio Development: Capital Employed by Region
SONAE SGPS BUSINESS PORTFOLIO DEVELOPMENT Euro millions Prospective Capital Employed 1999 - 2004 by Region 2.400 6.000 ∆ CE Rest fo the World 1% 1% • Strong increase in exposure 18% 650 ( + 25%) to other EU countries Brazil 24% Other Europe 11% 27% 1.300 ( + 200%) • Decrease of the relative weight o
Slide 9: Consolidated Results for the 1st Quarter 2001
SONAE SGPS CONSOLIDATED RESULTS Euro millions FOR THE 1ST QUARTER 2001 1Q 00 1Q 01 ∆ Turnover 1,346.0 1,435.0 +6.6% • An increase of 6.6% in Turnover (59% in Operating profit 25.6 18.7 -27.0% Telecommunications, 7.5% Net financial charges (28.4) (33.7) +18.7% in Wood Based Panels and 1% in Modelo Co
Slide 10: Turnover 1st Quarter 2001
SONAE SGPS TURNOVER – 1ST QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR AND BY GEOGRAPHY 5,751 Brazil 5,202 Retailing 26% 59% 3,075 Shopping 2,585 Centres 2,255 4% Rest of Europe 1,435 1,346 18% T elecoms 10% Rest of the Others World Wood Based 3% Portugal 3% 1996 1997 1998 * 1999 * 2000 1Q 2001
Slide 11: Operating Profit 1st Quarter 2001
SONAE SGPS OPERATING PROFIT – 1ST QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR 12 (18) Brazil 8 (3) (8) Portugal 19 30 (2) Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 11
Slide 12: EBITDA 1st Quarter 2001
SONAE SGPS EBITDA – 1ST QUARTER 2001 Euro millions CONTRIBUTION BY SECTOR 7 (1) (8) 15 102 19 Brazil Portugal 44 26 Wood Based Retailing Shopping Telecoms Tourism Others and TOTAL Panels Centres consolidation adjustments # 12
Slide 13: Consolidated Financial Structure
SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE Net Borrowings Net Gearing Interest Cover (Euro million) 3,071 2,851 3,6x 3,7x 2,577 172% 2,428 159% 3,1x 3,0x 2,148 159% 2,3x 98% 93% 83% 1Q 1H 3Q 4Q 1Q 1Q 1H 3Q 4Q 1Q 1Q 1H 3Q 4Q 1Q 2000 2000 2000 2000 2001 2000 2000 2000 2000 2001 2000 2000 2000 2000 20
Slide 14: Sonae Indústria
& ) SONAE INDUSTRIA sonae Whaveleksnaate:
Slide 15: Indústria Business Portfolio
SONAE INDÚSTRIA BUSINESS PORTFOLIO SONAE INDUSTRIA 100% 100% 91% SIR TAFISA SPDF Laminates Components Wood Based Panels Forestry and Chemicals Sawmilling Resins 100% 100% 100% 98% 60% 63% Tafisa Brasil Tafiber Taiber Tafisa France Glunz AG Tafisa Canada # 15
Slide 16: Indústria Sales 1st Quarter 2001
SONAE INDÚSTRIA SALES – 1ST QUARTER 2001 By Product By Market Rest of the World Others 7% Plywood 3% Rest of Europe 9% 10% Germany Hardboard Surfaced 17% 3% 29% North America MDF 8% 24% France South America 21% 5% OSB 2% Chipboard UK 30% 7% Iberia 25% Leading world manufacturers of Wood Based Panels
Slide 17: Indústria EBITDA Margin - Iberia and Rest of Europe
SONAE INDÚSTRIA EBITDA MARGIN – IBERIA AND REST OF EUROPE Iberia France 15% 15% 17% 16% 17% 15% 1% 2% 5% 4% 0,4% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 -2% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 UK Germany 11% 9% 7% 1% 5% 7% 4% 3% 5% -2% -3% -5% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 4Q 99 1Q 00 2Q 00 3Q 00
Slide 18: Indústria EBITDA Margin - Other Countries
SONAE INDÚSTRIA EBITDA MARGIN – OTHER COUNTRIES Canada Brazil 48% 40% 44% 36% 38% 32% 35% 32% 32% 25% 19% 13% 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 South Africa 19% 4Q 00 - “ramp-up” of Tafibra in South Africa 9% - acquision of Novoboard 4Q 00 1Q 01 # 18
Slide 19: Indústria Restructuring & Expansion
SONAE INDÚSTRIA RESTRUCTURING & EXPANSION Closures in 1Q 01 New Capacity 3Q 01 Spain - Linares 3 450.000 m (Particle Board) . U.K. - EDB ( decorative boards) 3Q 01 France - Lure 3 450.000 m (Particle Board) 3Q 01 Germany - Nettgau 3 550.000 m (Particle Board) Openings in 1Q 01 - Le Cresout 3 3Q 01 F
Slide 20: Indústria Restructuring and Expansion
SONAE INDÚSTRIA RESTRUCTURING AND EXPANSION . Complete restructuring of production base in France and Germany by end 2001 Northern Europe . Expand capacity of high growth products: Flooring, OSB . Develop UK market position backed by new capacity brought on stream 1H 2000 . Consolidate market (30% o
Slide 21: Sonae Distribuição
sonae [elisisaneluirercre
Slide 22: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO SONAE DISTRIBUIÇÃO 100% 88,15% 100% Modelo SONAE Modelo DISTRIB. Continente BRASIL Continente Food Retail Portugal Food Retail Brasil Non-Food Retail BIG Continente Modalfa Cândia (S.Paulo) Modelo Worten Mercadorama (Paraná) Modelo Bonjour Max Mat (50%) Nacional
Slide 23: Distribuição Current Position - 1st Quarter 2001
SONAE DISTRIBUIÇÃO CURRENT POSITION – 1ST QUARTER 2001 Food Retail Portugal Food Retail Brazil Non Food Retail Portugal High medium-term growth Rapidly maturing market Fragmented market potential 6 6 6 Eur 476 * 10 gross sales Eur 420 * 10 gross sales Eur 76 * 10 gross sales (EUR 2,119 * 106 gross s
Slide 24: Distribuição Business Portfolio - 1999
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1999 Modalfa 1999 high Worten high Continente Modelo medium S. Catarina Profitability medium RGS (Brazil) Paraná Vobis S. Paulo (Brazil) Bonjour Max Mat low Sport Zone low low defying high Market share # 24
Slide 25: Distribuição Business Portfolio - 2002
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 2002 Modalfa Continente 2002 high high Worten S. Catarina Modelo Paraná S. Paulo (Brazil) RGS (Brazil) medium medium Profitability New state Bonjour Max Mat in Brazil Vobis Sport Zone e-commerce low low low defying high Market share # 25
Slide 26: Distribuição Business Portfolio
SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO Food Non Food FORMATS: FORMATS: ! Hyper ! Home Appliances ! Computer products ! Mini-Hyper ! Apparel ! Construction ! Supers ! Sport goods materials Portugal 50% 10% Leadership in a mature 36% 9% Synergic growth market 25% 27% FORMATS: ! Hyper ! Supers Gross Sal
Slide 27: Distribuição Portugal - Modern Retail Market
SONAE DISTRIBUIÇÃO PORTUGAL – MODERN RETAIL MARKET Others w orten w orten 4,9% Carrefour 6,7% worten Auchan 15,1% 2000 SONAE SONAE SONAE APED 43,5% 34,6% 27,8% Universe* Modern Retail Nielsen Food worten Index universe worten (INA) Jerónimo Martins w worten orten 29,9% worten * APED Universe - Assoc
Slide 28: Distribuição Portugal - Portfolio 1st Quarter 2001
SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 1ST QUARTER 2001 1Q 2001 Gross Sales: 543 M. Euro Sales Area sq.m: 360.000 m2 Nr stores: 205 Main formats Stores Sq.m (000) Gross sales 1Q 01* Continente Hypermarkets 12 117 237 Modelo Mini-Hypermarkets 57 131 204 Modelo Bonjour Supermarkets 22 17 15 Worten Ho
Slide 29: Distribuição Brazil - Retail Market
SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET BRAZIL Nacional Ranking (ABRAS - TOP 5) " Total Area (‘000 km2) 8,547 " Population (‘000) 169,544 97 98 99 00 Gross Sales " GDP (b EUR) 600 2 2 2 1 5,3 CBD " per capita GDP (EUR) 3,541 1 1 1 2 5,2 Carrefour 3 3 4 3 1,6 Bompreço 9 5 3 4 1,6 SDB 4 4 5 5 1,4 Se
Slide 30: Distribuição Brazil - Portfolio 1st Quarter 2001
SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 1ST QUARTER 2001 1Q 2001 Gross Sales: 419 M. Euro (782 mn R$) Sales Area sq.m: 400.000 m2 Nr stores:171 Main formats Stores Sq.m (000) Gross sales 1Q 01* São Paulo BIG Hypermarkets 12 81 81 Cândia Supermarkets 1 2 4 Paraná BIG Hypermarkets 5 35 43 Mercadorama Su
Slide 31: Continuous Investment in the Base Market
SONAE DISTRIBUIÇÃO CONTINUOUS INVESTMENT IN THE BASE MARKET Total sq.m +90.000 900.000 +60.000 750.000 492.000 Brazil 402.000 +150.000 sqm [ + 20 % ] Portugal 408.000 348.000 2000 Portugal Brazil 2001 Planned Expansion 2001 # 31
Slide 32: Distribuição EBITDA / EBIT Performance
SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro millions EBITDA 105 136 168 34 155 63 4Q 74 4Q Portugal 58 3Q 34 3Q Brazil 42 29 2Q 19 2Q 36 1Q 37 18 19 1Q 1998 1999 2000 1Q 01 1998 1999 2000 1Q 01 EBIT 134 44 109 100 48 20 4Q 4Q 29 Portugal 42 Brazil 3Q 15 11 3Q 25 2Q 6 2Q 19 23 8 1Q 3 1Q 1998 19
Slide 33: Distribuição Strategic Guidelines
SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Context Strategic guidelines . Sector consolidation . Continuous investment in the base market . Pro-active stance in the concentration movements in the Iberian Peninsula and Latin America . Consumer focus . Reinforce value proposal and operational efficiency
Slide 34: Business Strategy - Value Creation
SONAE DISTRIBUIÇÃO BUSINESS SRATEGY – VALUE CREATION GROWTH OPERATIONAL EFFICIENCY PORTUGAL Supply chain integration " consolidation of market share through hyper & mini-hyper formats Category management " development of neighourhood and - ECR partnership more convenience formats - own labels - spac
Slide 35: Sonae Imobiliária
sonae Miaaleleiitclate
Slide 36: Imobiliária Business Portfolio
SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe Parque Principado (25%) CascaiShopping1 (63)2 Centro Colombo1 (120)2 (70)2 - Spain Shopping Penha (14%) Dortmund MTC – CoimbraShopping (2
Slide 37: Imobiliária Shopping Centres
SONAE IMOBILIÁRIA SHOPPING CENTRES 2 Number GLA ( ‘000 m ) Shopping Centres in operation Portugal * 12 540 Brazil 5 105 Spain 1 70 18 715 Shopping Centres under development Portugal 1 20 Spain 2 69 Greece 1 60 Brazil 1 105 ** 5 254 Shopping Centres under management Portugal 785 Spain 208 Brazil 105
Slide 38: Imobiliária Development and Investment
SONAE IMOBILIÁRIA DEVELOPMENT AND INVESTMENT Equity GLA Gross Investment Opening 2 9 Stake (000 m ) (EUR x 10 ) Plaza Mayor 75% 28 49,5 Spring 2002 (Malaga – Spain) Avenida M40 (Madrid – Spain) 60% 41 56,5 Autumn 2002 Aegean Park (Athens – Greece) 50% 60 152,0 Spring 2004 Dortmund MTC (Dortmund – Ge
Slide 39: Imobiliária Shopping Centre Performance
SONAE IMOBILIÁRIA SHOPPING CENTRE PERFORMANCE Gross Lettable Area (thousand sq. m) Sales per sq.m in 1Q 01 (EUR thousand) Colombo 120 Colombo 3,5 NorteShopping 72 NorteShopping 3,1 CascaiShopping 63 CascaiShopping 2,1 GaiaShopping 57 GaiaShopping 1,5 Vasco da Gama 48 Vasco da Gama 2,9 Maiashopping 3
Slide 40: Sales Growth 1Q 00 / 1Q 01
Colombo 4% NorteShopping 11% SONAE IMOBILIÁRIA CascaiShopping 10% GaiaShopping 5% MaiaShopping 11% CoimbraShopping 8% SALES GROWTH 1Q 00/1Q 01 GuimarãeShopping 41% Viacatarina 0% Vasco da Gama 11% # 40
Slide 41: Sonae.com
& ) SONAE.COM
Slide 42: Com Business Portfolio
SONAE COM BUSINESS PORTFOLIO SONAE COM (1) 45% 56.67% 100% 100% Mobile Fixed Data Multimédia Sonae Com and IT and Internet Ventures Optimus Novis Publico JVs & Alliances: Publico.pt Modelo.com (JV Sonae Retail) (25%) Clix (56.7%) BizDirect (Digital Marketplace JV) 20% 43.33% 43.33% Miau.pt (45%) We
Slide 43: Optimus - Subscriber Growth
SONAE COM OPTIMUS – SUBSCRIBER GROWTH Optimus subscribers, EOP (000’s) 1511 1410 1153 1002 At 31March 2001 Optimus had 1.5 million 918 817 customers. 82% were pre-paid subscribers. 683 564 Mobile penetration in Portugal stood at 69.6% Source: ICP 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 # 43
Slide 44: Optimus - Market Share
SONAE COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) 3.456 3.754 4.933 5.193 5.765 6.716 6.965 Optimus aims to achieve more than its 45,8% 45,3% 45,0% 44,9% 45% 44% 45% natural share of net adds to guarantee continued market share growth. In 2.5 years of operation, Optimus has achieve
Slide 45: Optimus - ARPU Evolution
SONAE COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 40,0 36,0 34,6 34,2 34,2 33,8 33,3 31,8 33,9 31,2 31,4 33,3 32,1 32,0 31,0 31,9 32,0 29,5 29,2 30,2 30,0 29,7 28,0 29,1 29,0 28,7 28,5 27,4 24,0 20,0 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Optimus Telecel TMN # 45
Slide 46: Novis - Network Roll-out
SONAE COM NOVIS – NETWORK ROLL-OUT Current Leased Backbone Fibre Backbone Kms May 01 Viana Do Castelo Braga Bragança Extension 383 2*155 Maia Famalição Mbps PortoPenafiel Fibre Pairs Installed 686 to FT S Global Aveiro João Viseu Guarda Madei Network ra Coimbra MAN Kms (Lisbon+Porto) May 01 75 kms P
Slide 47: Novis - Residential Market Penetration
SONAE COM NOVIS – RESIDENTIAL MARKET PENETRATION New Fixed Telecom Operators Penetration (Market Research) By Operator Total 50 10 45 44,9 9 43,7 40 40 8 7,1 6,9 33,3 33,9 35 35,4 7 6,3 6,5 6,5 30,828,6 28,632,1 32,832,7 30 27,3 30,8 6 5,3 5,6 5,3 5,2 28,6 % 25 5 % 4,2 4,2 20 4 3,3 2,8 15 3 10 2 1,3
Slide 48: Novis - Corporate and SME Clients
SONAE COM NOVIS – CORPORATE AND SME CLIENTS Corporate and SME Clients 25.000 22.768 350 Indirect access Client lines 300 20.000 Direct access clients 250 13.981 15.000 200 10.419 10.000 150 7.637 11.532 9.626 10.102 100 4.473 7.635 5.000 4.111 50 129 129 148 197 288 0 0 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01
Slide 49: Novis - Residential and SOHO Client Lines
SONAE COM NOVIS – RESIDENTIAL AND SOHO CLIENT LINES Residential and SOHO Client Lines 200.000 180.000 173.472 160.000 140.000 130.200 Indirect access 120.000 101.643 97.583 100.000 88.932 80.000 73.641 62.072 60.000 46.758 40.000 32.907 14.591 20.000 0 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 Residential SOHO
Slide 50: Matrix - Internet and Multimedia
SONAE COM MATRIX – INTERNET and MULTIMEDIA Pageviews per month (millions) Unique visitors (thousands) Clix Subscribers, EOP (000’s) 1.000 800 759 45,0 900 700 641 40,0 12,6 800 35,0 266 600 700 515 170 30,0 11,5 500 600 430 25,0 11,7 116 500 400 20,0 6,8 70 299 38,5 400 66 6,6 300 15,0 300 596 619 2
Slide 51: Com Financial Progress: Revenues and Cash EBITDA
SONAE COM FINANCIAL PROGRESS Euro millions Operating Revenues Optimus Novis Matrix 130 134 127 111 13 10 10 10 12 94 11 8 8 7 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 00 3Q 00 4Q 00 1Q 01 CASH EBITDA Optimus Novis Matrix 10 13 10 11 2 1 -10 -6 -8 -14 -17 -19 -4 -24 1 Q 00 2Q 00
Slide 52: Com Financial Progress: CAPEX
SONAE COM FINANCIAL PROGRESS Euro millions CAPEX (excl. capitalised costs) Optimus Novis Matrix 131 11 11 5 32 4 21 25 3 2 2 19 1 0,8 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 00 3Q 00 4Q 00 1Q 01 # 52
Slide 53: Sonae Turismo
an TURISMO sonae hiuulals pale
Slide 54: Turismo Business Portfolio
SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotel Management Resort Leisure Travel Management Fitness & Development & Sports Porto Palácio Troia Resort Entertainment (Fun Center) Business travel Aqualuz Lagos Properties Health Club Leisure tr
Slide 55: Turismo Business Areas
SONAE TURISMO BUSINESS AREAS To be the leader of tourism industry in Portugal: Having as core business the development of «tourism– Corporate Travelling real estate» resorts at an international scale, integrating all the key skills of related business, which Leisure Travelling provide a number of co
Slide 56: Turismo Investment Projects
SONAE TURISMO INVESTMENT PROJECTS Tróia Resort - Setúbal . Mission: Develop a tourism platform in the Tróia Peninsula, benefiting and capitalizing on its environmental, natural and cultural resources Palmares Resort – Lagos, Algarve . Mission: Develop a golf and real estate platform . Reconditioning
Slide 57: Sonae Capital
, ! SONAE CAPITAL sonae |(@=) ®)he=)
Slide 58: Capital Business Portfolio
SONAE CAPITAL BUSINESS PORTFOLIO SONAE CAPITAL Spred Spinveste Choice Car Invicta Capitais Privados Joint -Ventures Construction, Car Hire Transport & Risk Capital Real Estate & Retailing & Services & Engineering ba (49%) Contacto (100%) Finlog (50%) Star Transportes Portucel (17,3%) Selfrio (35%) C