Sonae Sgps Sa · EURONEXT:SON
Sonae Sgps Sa — Investor Presentation (January 2001)
51 slides from Sonae Sgps Sa's investor presentation, January 2001
Slide 1: Sonae SGPS
sonae sgps JANUARY 2001 www.sonae.pt
Slide 2: Sonae SGPS Business Portfolio
#2 SONAE SGPS BUSINESS PORTFOLIO SONAE SGPS 85,45% 69,56% 51,12% 79,9% 100% 100% Sonae Sonae Sonae Sonae.com Sonae Sonae Indústria Distribuição Imobiliária Turismo Capital Wood Based Panels Food Retail Shopping Centres Fixed and mobile Hotels Joint Ventures Forestry Non Food Retail (developer, inves
Slide 3: Business Portfolio Configuration
#3 SONAE SGPS BUSINESS PORTFOLIO CONFIGURATION SONAE takes an active role configuring its business portfolio in three horizons Horizon 3 Horizon 2 Horizon 1 Options for potential High growth businesses future development with potential for strong profit Mature businesses with generation in the mediu
Slide 4: Sonae Distribuição (Retail) Portfolio Configuration
#4 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 Retailing São Paulo Spec
Slide 5: Current Sectorial Strategy
#5 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 profitabil
Slide 6: Value Creation by Sonae 1987-2000
#6 SONAE SGPS VALUE CREATION BY SONAE 1987 - 2000 Sonae SGPS Total Return for Shareholders Portuguese Stock Market INDEX (Basis=100) 7.000 6.577 6.000 5.143 5.000 3.924 4.000 3.721 3.136 3.000 2.000 770 1.000 BASIS=100 739 0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 Compounded annual growth rate
Slide 7: Prospective Capital Employed 1999-2004 by Sector
#7 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 C
Slide 8: Prospective Capital Employed 1999-2004 by Region
#8 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 weigh
Slide 9: Consolidated Results 3rd Quarter 2000
#9 SONAE SGPS CONSOLIDATED RESULTS Euro millions 3TH QUARTER 2000 - ACUM. EUR million 3Q – 1999 * 3Q – 2000 ∆ Turnover 3.642 4.263 +17% Operating profit 81,4 139,7 +72% Net financial expenses (65,8) (104,7) +60% • Strong improvement in profitability of “mature” Profit on ordinary activities 15,5 34,
Slide 10: Turnover - Contribution by Sector
# 10 SONAE SGPS TURNOVER – CONTRIBUTION BY SECTOR Euro millions 1SH HALF 2000 5215 2810 24% 3.075 2.702 36% 2.585 2.405 2.255 3% 8% 3% 26% 1996 1997 1998 * 1999 * 2000 * pro-forma Retail Brazil Retail Portugal Wood Based Panels Shopping Centres Telecoms Others
Slide 11: Operating Profit - Contribution by Sector
# 11 SONAE SGPS OPERATING PROFIT – CONTRIBUTION BY SECTOR Euro millions 1SH HALF 2000 12 (17) 20 (3) (16) 65 59 Brazil 14 Portugal 51 Retailing Wood Based Shopping Telecoms Tourism Others TOTAL Panels Centres
Slide 12: EBITDA - Contribution by Sector
# 12 SONAE SGPS EBITDA – CONTRIBUTION BY SECTOR Euro millions 1SH HALF 2000 23 (1) (4) 223 19 71 115 Brazil 37 Portugal 78 Retailing Wood Based Shopping Telecoms Tourism Others TOTAL Panels Centres
Slide 13: Profit Before Tax - Contribution by Sector
# 13 SONAE SGPS PROFIT BEFORE TAX – CONTRIBUTION BY SECTOR Euro millions 1SH HALF 2000 239 263 12 (32) 11 41 (8) Retailing Wood Based Shopping Telecoms Tourism Others * TOTAL Panels Centres * Capital gain IPO Sonae.com
Slide 14: Consolidated Financial Structure - 3rd Quarter 2000
# 14 SONAE SGPS CONSOLIDATED FINANCIAL STRUCTURE – 3RD QUARTER 2000 Borrowings Net Gearing Interest Cover (Euro million) 2.693 129% 4,1x 2.505 150 3,6x 165 2.319 209 96% 3,1x 82% 2.543 2.340 2.110 1999 1H 00 3Q 00 1999 1H 00 3Q 00 1999 1H 00 3Q 00 Cash, Bank and Short Term Investments Net Debt / (Sh
Slide 15: Sonae Indústria
& ) SONAE INDUSTRIA sonae Wiateleksnaate!
Slide 16: Sonae Indústria Sales 3Q00
# 16 SONAE INDÚSTRIA SALES 3Q00 By Product By Market Africa 5% Others Plywood 4% North America 11% Surfaced 6% Germany 27% 21% Hard./Soft. South America 5% 8% UK MDF 8% 25% France 26% Particleboard OSB 26% Iberia 2% 26% Leading world manufacturers of Wood Based Panels with annual sales > EURO 1.300
Slide 17: Sonae Indústria EBITDA Margin
# 17 SONAE INDÚSTRIA EBITDA MARGIN Iberia France Germany 18% 17% 16% 15% 15% 5% 5% 4% 5% 7% 1% 2% 4% 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 -3% -5% 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 UK Canada Brazil 43% 40% 48% 44% 38% 36% 38% 32% 35% 25% 13% 11% 7% 9% 1% 3Q 99 4Q 99 1Q 00 2Q 00 3Q
Slide 18: Restructuring & Expansion
# 18 SONAE INDÚSTRIA RESTRUCTURING & EXPANSION Closures in 2000 New Capacity - Oliv. Hospital 3Q 00 Portugal 450.000 m 3 . France - Rochefort (Particle Board) CDR - Linares 1Q 01 Spain 450.000 m 3 (Particle Board) . Germany - Eiweiler (plywood) - Lure 2Q 01 France 450.000 m 3 (Particle Board) . U.K.
Slide 19: Restructuring and Expansion
# 19 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 (
Slide 20: Sonae Distribuição
ISTRIBUICAO sonae [elisisaneluirercre
Slide 21: Sonae Distribuição Current Position
# 21 SONAE DISTRIBUIÇÃO CURRENT POSITION Food Retail Portugal Food Retail Brazil Non Food Retail Portugal High medium-term growth Rapidly maturing market Fragmented market potential 6 6 6 Eur 2.072 *10 gross sales Eur 1.846 *10 gross sales Eur 404 *10 gross sales Nº 1 in Southern Brazil º 1 with 27%
Slide 22: Sonae Distribuição Business Portfolio - 1999
# 22 SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 1999 1999 Modalfa Continente Worten high Modelo medium Brazil Profitability (RGS + SC) Brazil (Paraná) Brazil Vobis (S. Paulo) Bonjour Max Mat low Sport Zone low defying high Market Share
Slide 23: Sonae Distribuição Business Portfolio - 2001
# 23 SONAE DISTRIBUIÇÃO BUSINESS PORTFOLIO - 2001 Worten 2001 high Modalfa Continente Modelo Brazil (RGS + SC) Brazil Brazil medium (S. Paulo) (Paraná) Profitability Bonjour Max Mat Vobis Sport Zone e-commerce low low defying high Market Share
Slide 24: Sonae Distribuição Portugal - Portfolio
# 24 SONAE DISTRIBUIÇÃO PORTUGAL – PORTFOLIO 2000 Gross Sales (annualised): 2.485 M. Euro Final sq.m: 348.000 m2 er N stores: 197 Main formats Stores Sq.m (000) Gross sales 2000 (annualised)* Continente Hypermarkets 12 117 1.100 Modelo Mini-Hypermarkets** 56 128 919 Modelo Bonjour Supermarkets 22 17
Slide 25: Sonae Distribuição Brazil - Portfolio
# 25 SONAE DISTRIBUIÇÃO BRAZIL – PORTFOLIO 2000 Gross Sales (annualised): 1.846 M. Euro (3,4 b R$)** Final sqm: 402.000 m2 er N stores: 173 Gross sales 2000 Main formats Stores Sq.m (000) (annualised)* São Paulo BIG Hypermarkets 12 81 364 Cândia Supermarkets 1 2 21 Paraná BIG Hypermarkets 5 35 176 M
Slide 26: Brazil - Retail Market
# 26 SONAE DISTRIBUIÇÃO BRAZIL – RETAIL MARKET Brazil Total Area (´000 km2) 8.547 Population (´000) 163.700 per capita GDP (Eur) 3.699 GDP (b Eur) 606 São Paulo Total Area (´000 km2) 249 2,9% Population (´000) 35.334 21,6% per capita GDP (Eur) 6.081 GDP (b Eur) 215 35,5% Paraná São Paulo South (SC +
Slide 27: Continuous Investment in the Base Market
# 27 SONAE DISTRIBUIÇÃO CONTINUOUS INVESTMENT IN THE BASE MARKET Total sqm 59.000 750.000 672.000 19.000 402.000 Brazil 343.000 78.000 sqm [ + 12 % ] 250 M.Euro Portugal 329.000 348.000 1999 Chg. Portugal Chg. Brazil 2000
Slide 28: EBITDA / EBIT Performance
# 28 SONAE DISTRIBUIÇÃO EBITDA / EBIT PERFORMANCE Euro million EBITDA 168 74 71 155 136 50 37 34 3Q 58 3Q 49 Portugal 29 Brazil 13 78 1H 37 1H 69 24 1998 1999 2000 1998 1999 2000 EBIT 109 29 100 86 34 24 3Q 42 33 23 14 3Q Portugal Brazil 11 42 44 1H 2 10 1H 4 1998 1999 2000 1998 1999 2000
Slide 29: Sonae Distribuição Strategic Guidelines
# 29 SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Context Strategic guidelines . Sector consolidation . Reinforce leadership in base market . Pro-active stance in concentration movements in Iberian Peninsula and Latin America . Consumer focus . Reinforce operational efficiency . Human resources developme
Slide 30: Partnership Agreement with GCT
# 30 SONAE DISTRIBUIÇÃO STRATEGIC GUIDELINES Partnership agreement with GCT Pro-active attitude towards concentration . Acquisition of 4 medium size units (“Modelo”) . 41 new franchised stores under the brand “Modelo Bonjour” . GCT joins Modelo Continente’s sourcing structure . Master franchise of o
Slide 31: Sonae Distribuição Outlook 2001
# 31 SONAE DISTRIBUIÇÃO OUTLOOK 2001 . Food retail Portugal 2.200 million Euro ( 6%) GROSS SALES 5.000 million EURO (annualised) . Food retail Brazil 2.300 million Euro (+ 25%) . Non-Food retail Portugal 500 million Euro (+ 25%) 2 SALES AREA 850.000 m . Up 13% from 2000 +-9% of net sales EBITDA by e
Slide 32: Sonae Imobiliária
sonae Miaakeleliitclate
Slide 33: Sonae Imobiliária Business Portfolio
# 33 SONAE IMOBILIÁRIA BUSINESS PORTFOLIO SONAE IMOBILIÁRIA Shopping Shopping Shopping Shopping Centres Centres Centres Centres Portugal Southern Brazil Germany Europe CascaiShopping1 (59)2 Centro Colombo1 (120)2 Shopping Penha (14%) CoimbraShopping (26.5)2 MaiaShopping (31)2 Shopping Franca (31%) G
Slide 34: Shopping Centres
# 34 SONAE IMOBILIÁRIA SHOPPING CENTRES 2 Number GLA ( ‘000 m ) Shopping Centres in operation Portugal 10 475,5 Brazil 5 105,7 15 581,2 Shopping Centres under development Portugal 3 82,4 Spain 2 97,7 Greece 2 64,6 Brazil 1 105,0 8 349,7 Shopping Centres under management Portugal 690 Spain 136 Brazil
Slide 35: Sales Growth 99/00
# 35 SONAE IMOBILIÁRIA SALES GROWTH 99/00 28% 21% 21% 19% 13% 8% 6% 6% Colombo NorteShopping GaiaShopping MaiaShopping CoimbraShopping GuimarãeShopping Viacatarina (*) CascaiShopping (*) In April 99 the first phase of the expansion and renovation of CascaiShopping opened to the public
Slide 36: Sonae.com
& ) SONAE.COM
Slide 37: Sonae.com Business Portfolio
# 37 SONAE .COM BUSINESS PORTFOLIO SONAE.COM (1) 45% 56.7% 100% 100% Mobile Fixed Data Multimédia Sonae.com and IT and Internet Ventures Optimus Novis Publico.pt JVs & Alliances: Publico Modelo.com (JV Sonae Retail) (25%) Clix (56.7%) BizDirect (Digital Marketplace JV) 20% 43.3% 43.3% (45%) We Do Co
Slide 38: Optimus - Subscriber Growth
# 38 SONAE .COM OPTIMUS – SUBSCRIBER GROWTH Operator penetration (15 months after launch) Optimus subscribers, EOP (000’s) Optimus 8,20% Cosmote 5,90% 1153 Amena 3,40% 1002 918 Mobistar 2,20% 817 Airtel 1,80% 683 Netcom 1,60% 564 Libertel 1,40% 431 Omnitel 1,30% Bouygues 0,40% Orange 0,40% 0,00% 2,0
Slide 39: Optimus - Market Share
# 39 SONAE .COM OPTIMUS – MARKET SHARE Overall market share, EOPs (000’s) Share of net additions (000’s) 3.456 3.754 4.219 4.671 4.931 5.194 +379 +298 +468 +451 +259 +263 40,0% 39,8% 45,5% 45,8% 45,3% 45,0% 44,9% 45% 45,7% 48,6% 44,3% 45,4% 9,6% 22,2% 30,3% 23,7% 26,0% 28,3% 37,9% 37,2% 36,4% 35,8%
Slide 40: Optimus - ARPU Evolution
# 40 SONAE .COM OPTIMUS – ARPU EVOLUTION ARPU evolution (Euro/sub/month) 35,0 34,6 34,2 34,2 34,0 33,8 34,0 33,9 33,0 33,2 33,3 31,4 31,9 32,0 31,2 31,8 31,9 31,0 31,0 30,0 30,2 29,5 29,0 29,6 29,1 28,0 28,7 28,5 27,2 27,0 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Optim us Telecel TMN
Slide 41: Novis - Initial Established Platform
# 41 SONAE .COM NOVIS – INITIAL ESTABLISHED PLATFORM SRD IP Global . Founded in 1994 it is one of the few integrated . Founded in October 1995 to provide dial-up and data, communications and IT service providers in dedicated Internet access Portugal . Second largest business ISP with 21.000 . Strong
Slide 42: Novis - Network Coverage
# 42 SONAE .COM NOVIS – NETWORK COVERAGE Network Coverage - Backbone, MAN and WLL Network Coverage (End of Period) 2000 2001 2002 Coverage of Business Sites 33% 61% 73% Covered Business Sites ('000s) 71 134 159 Coverage of Fixed Line Market (Residential + Business) 27% 51% 60% Fixed Lines in Covered
Slide 43: Novis - Eligible Market Evolution
# 43 SONAE .COM NOVIS – ELIGIBLE MARKET EVOLUTION Eligible market is expected to increase sharply over the next 6 months 100,0 % of Monthly Bill 35,4 Q3 2000 29,6 64,6 Q4 2000 Q1 2001 15,5 11,9 Q2 2001 7,6 Q3 2000 Pre Fixed Local Indirect Direct (Nat.+Int.) Selection to + Access Access Mobile Region
Slide 44: Novis - Residential Market Penetration
# 44 SONAE .COM NOVIS – RESIDENTIAL MARKET PENETRATION New Fixed Telecom Operators Penetration (Market Research) By Operator Total 40 10 33,3 33,9 35 9 32,1 30,8 8 30 28,6 28,6 27,3 28,6 7 25 5,6 6 5,3 % 5 20 4,2 4,2 % 4 3,3 15 2,8 3 10 2 1,3 1 0,6 5 0 Jan.00 Fev.00 Mar.00 Abr.00 Mai.00 Jun.00 Jul.0
Slide 45: Novis (and Clix) Launch Progress
# 45 SONAE .COM NOVIS (and CLIX) LAUNCH PROGRESS Euro millions 23,7 Corporate and SME’s Revenues 3,5 Residential 4.425 and SoHo’s 4.006 4,8 CLIX 2.115 10,3 Corporate 7,2 6,1 15,4 and SME’s 30.3 30.6 30.9 Residential and SoHo’s 137.933 Q1 Q2 Q3 Total . Slow start in residential and SoHo’s, but succes
Slide 46: Sonae.com Financial Highlights 3Q 2000
# 46 SONAE .COM FINANCIAL HIGHLIGHTS 3Q 2000 Euro millions 1999 1H2000 3Q2000 (YTD) Total operating revenues 268 230 379 Optimus 248 205 332 Novis 20 16 27 Público* - 10 18 EBITDA (after capitalized costs) 26 24 44 Optimus 30 39 70 Novis (4) (17) (27) Público * 0 2 3 Income (loss) before taxes (33)
Slide 47: Sonae Turismo
an TURISMO sonae hieulals ale
Slide 48: Sonae Turismo Business Portfolio
# 48 SONAE TURISMO BUSINESS PORTFOLIO SONAE TURISMO Solinca Torralta Solinca Star/Roteiro Desporto e Lazer Hotels Resort Leisure Travel Management Fitness & Development & Sports Hotel management Troia Resort Entertainment (Funcenter) Business travel Real estate development Lagos properties Health Cl
Slide 49: Sonae Turismo Investment Projects
# 49 SONAE TURISMO INVESTMENT PROJECTS Tróia - Setúbal . Acquisition of Soltróia (approx. 950 ha. of land surrounding Torralta, including 480 ha. of natural reserve) . Tróia Resort: Master and Detail Plan . Casino Project: Master Plan and Conceptual Design Lagos - Algarve . Acquisition of Palmares (
Slide 50: Sonae Capital
, ! SONAE CAPITAL sonae |(@=) ®)he=)
Slide 51: Sonae Capital Business Portfolio
# 51 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 Barbosa & Almeida (49%) Contacto (100%) Star Transportes BPI (4,3%) Finlog (50%) P