Earnings Release • Aug 30, 2022
Earnings Release
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First Half of 2022 Results Report
Sonae
Maia, 27th July 2022
During 2Q22, Bright Pixel continued its portfolio management activity: two exit agreements announced (Cellwize and Maxive, the latter still not concluded), and two new investments. At the end of 1H22, Bright Pixel had expanded its portfolio with 4 new shareholdings and reached relevant exit agreements, apart from the regular follow-on investments in some of its portfolio companies.
In the first half of 2022, and as we were preparing ourselves for a post-pandemic world, we were once again faced with a completely new and challenging reality, this time marked by intense supply chain disruptions, a surge in energy costs, and rising inflation and interest rates. This context, intensified by the war in Ukraine, had a significant impact on our communities and on our businesses, and put us once again to the test.
Despite the decrease in consumer confidence and an intense pressure on our cost structure, Sonae's portfolio continued to prove its adaptability, resilience, and ability to respond to customer needs. During the first half of the year, our portfolio was able to deliver a solid set of results with our businesses reinforcing once again their respective market leadership positions while consolidating their digital transformation paths.
At the end of June, total revenues increased 8% yoy and EBITDA grew more than 10% yoy. This consolidated operational performance, coupled with our active portfolio management, generated more than €600m in cash flow over the last 12 months, which, after the dividend payment to our shareholders last May, resulted in a yoy net debt reduction of almost €400m.
Sonae's share price increased 17% vs YE21, an outstanding performance against the market, and total shareholder return reached 54%, at the end of June 2022. Despite the negative evolution in equity capital markets, Sonae's Net Asset Value reached €3.8bn, with positive contributions from the increased profitability of MC and ISRG, higher NAV levels at Sierra and Bright Pixel, and a higher market cap at NOS.
At the same time, we maintained our commitments towards our planet, our people and our communities. We continued to make progress on several initiatives and launched a few new ones, such as the pledge to Zero Deforestation by 2030, the endorsement of the UN Ocean Principles, and the efforts to support the Ukrainian refugees in Portugal under the "Sonae for Ukraine programme". More importantly, and considering the current context of soaring inflation, our businesses reinforced the support to our customers by deploying differentiated competitive offers to alleviate the pressure on households' disposable incomes.
Looking forward, I am confident that, given our portfolio of leading companies, our dedicated teams and our solid financial situation, we are in a good position to navigate well through the coming macroeconomic cycle. As always, we will remain focused and united in overcoming the economic, social and environmental challenges of our time. However, today's volatility and uncertainty mean that we need to act with an increased sense of collaboration, speed and ambition. This must and will be our mindset. At the end of the day, our culture and sense of purpose will undoubtedly be the key drivers of our success.
Cláudia Azevedo, CEO
| $\epsilon$ m | 30.06.21 | 30.09.21 | 31.12.21 | 31.03.22 | 30.06.22 |
|---|---|---|---|---|---|
| NAV | 3,695 | 3,967 | 4,015 | 4,080 | 3,848 |
| Market capitalization | 1,600 | 1,817 | 2,006 | 2,084 | 2,342 |
| Net Debt | 1,496 | 857 | 563 | 931 | 1,103 |
| $\epsilon$ m | 2Q21 R | 1H21 R | 1Q22 R | 2Q22 | 1H 22 |
| Turnover | 1,600 | 3,195 | 1,676 | 1,771 | 3,447 |
| Underlying EBITDA | 136 | 246 | 120 | 139 | 259 |
| Direct Result | 55 | 54 | 42 | 63 | 105 |
| Net result group share | 62 | 62 | 42 | 76 | 118 |
| Sale of assets | 39 | 43 | 35 | 5 | 41 |
| M&A capex | $-6$ | $-91$ | $-110$ | $-31$ | $-140$ |
| Free cash flow before dividends paid | -5 | $-329$ | $-378$ | $-378$ | |
| Dividends paid | $-96$ | $-96$ | 0 | $-169$ | $-169$ |
| 1Y | 3Y | 5Y | 10Y | ||
10% Total Shareholder return* 54% 18% 16% *Source: Bloomberg.
Sonae's NAV is based on market references, such as trading multiples of comparable peers, external valuations, funding rounds and market capitalisations. Valuation methods and details per business unit are available in Sonae's Investor Kit at www.sonae.pt.
Sonae's NAV amounted to €3.8bn at the end of June 2022, -5.7% QoQ, mainly driven by the equity markets downturn with the consequent impact on our peers' valuation multiples, despite the improvement of our businesses' operational profitability.
| Company (em) | Ownership | 31.03.22 | 30.06.22 | Var. | Major drivers |
|---|---|---|---|---|---|
| МC | 75% | 1,892 | 1,693 | $-10.5%$ | Higher earnings but lower multiples |
| Worten | 100% | 216 | 159 | $-26.5%$ | Lower multiples |
| Zeitreel | 100% | 120 | 64 | $-46.5%$ | Lower multiples and earnings |
| Sierra | 90% | 875 | 880 | 0.6% | Higher INREV NAV |
| ISRG | 30% | 192 | 181 | $-5.8%$ | Higher earnings but lower multiples |
| Universo | 100% | 52 | 42 | $-18.4%$ | Lower multiples |
| Bright Pixel | 90% | 340 | 375 | 10.1% | Higher NAV |
| NOS | 33% | 584 | 655 | 12.1% | Higher share price |
| Other investments (1) | 175 | 175 | $0.0\%$ | ||
| Holding Real Estate | 180 | 183 | 1.8% | ||
| Holding Structure | $-141$ | $-138$ | 1.7% | ||
| Holding Net Debt (2) | $-383$ | $-398$ | $-3.9\%$ | ||
| Minorities | $-22$ | $-22$ | $-2.6%$ | ||
| Total | 4,080 | 3,848 | $-5.7%$ |
(1) Other investments include Gosh and MDS (transaction to be completed). (2) Normalized average net debt.
In terms of portfolio management activity and during the last quarter, Bright Pixel agreed on two exits (Cellwize and Maxive, the latter still not concluded) and two new investments. Considering the last 12 months, it is also important to mention the sale of 24.99% of MC to CVC funds for €528m, the acquisition of 95.4% of Gosh Food, a reference UK player in the plant-based food sector, the sale of MC's 50% stake in Maxmat and the agreement reached by Universo to sell its 50% stake in MDS for €100m (which conclusion is pending required requlatory approvals).
In what concerns operational performance, Sonae's portfolio delivered encouraging figures: consolidated turnover registered a 10.7% yoy increase in the 2Q22 to €1.8bn, mainly anchored on the positive contribution from MC, and consolidated underlying EBITDA increased 1.8% yoy in the quarter to €139m. This positive evolution of our consolidated businesses, combined with the improved performance of our equity consolidated businesses and the capital gains from Bright Pixel's portfolio activity, led to a Direct Result of €63m in the 2Q22, +13.6% yoy. Indirect result stood at €30m in 2Q22, well above last year's figure (+€20m yoy), impacted by dividends received from the direct stake in NOS, the value of Sierra's investment properties and Bright Pixel's portfolio revaluations. All in all, Net result (group share) improved to €76m in the 2Q22, +€14m vs 2Q21 (€118m in the 1H22, +€56m yoy, mostly driven by the recovery of the activities most affected by the lockdown in the 1H21).
€m
In terms of operational cash flow, and in challenging conditions, Sonae's portfolio generated €136m over the last 12 months, a significant yoy increase, mainly driven by the working capital variation in MC due to the anticipation of payments to suppliers in 1H21 in the pandemic period and also the inflation impact on payables in 1H22.
Regarding the portfolio management activity, Sonae invested €244m, received €104m of dividends and €660m of cash proceeds from asset sales mainly related with the 24.99% stake sale in MC and the sale of MC's 50% stake in Maxmat. During the 1H22, the most relevant portfolio change was the acquisition of an additional 10% stake in Sierra for €83.5m.
EBITDA (inc. rents and taxes) 427 412 $-3.5%$ $-87$ $42$ Working cap. and others Operational capex $-252$ $-319$ $-26.4%$ 53.4% Operational cash flow 88 136 $-29$ $-23$ Net financial activity 20.2% $-323$ $-244$ M&A capex 24.5% Sale of assets 109 660 Dividends received 20 104 $-135$ 632 FCF bef. dividends paid
L12M
June 21 June 22
$L12M$
var.
Sonae's FCF (before dividends paid) in the last 12 months reached
€632m, which after the dividend paid last May, led to a decrease of almost €400m in the consolidated net debt (€1,103m at the end of the 1H22). With this strong cash flow generation, the group's capital structure remains robust with very comfortable leverage ratios and liquidity levels and is fully financed until early 2024. At the end of 2Q22, Sonae held €1.020m of available liquidity (cash and unused credit facilities), maintained a low cost of debt (less than 1%) and a debt maturity profile of over 4 years.
Challenging macroeconomic conditions and high uncertainty levels continued to impact our businesses during the 1H22.
| Turnover | UnEBITDA margin | Turnover | UnEBITDA margin | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| $\epsilon$ m | 1H21 R | 1H 22 | yoy | 1H21 R | 1H 22 | 2Q21 R | 2Q22 | yoy | 2Q21 R | 2Q22 |
| MC | 2,505 | 2,695 | 7.6% | 9.4% | 9.0% | 1.258 | 1.401 | 11.4% | 10.2% | 9.6% |
| Worten | 518 | 521 | 0.6% | 6.0% | 4.9% | 246 | 261 | 5.9% | 5.7% | 4.7% |
| Sierra | 46 | 56 | 20.9% | 14.1% | 15.7% | 24 | 28 | 17.7% | 14.5% | 13.8% |
| Zeitreel | 135 | 174 | 28.1% | 1.1% | 4.2% | 74 | 78 | 4.3% | 7.3% | 1.6% |
| Universo | 8 | 17 | 101.1% | 4 | 9 | 131.2% | $\overline{\phantom{a}}$ | |||
| Bright Pixel | 25.5% | 0 | $\Omega$ | 32.6% | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ||||
| Total | 3.195 | 3,447 | 7.9% | 7.7% | 7.5% | 1,600 | 1,771 | 10.7% | 8.5% | 7.8% |
Note: R - Restated as Maxive from Bright Pixel was considered as asset held for sale and all periods since 1Q21 were restated to consider this asset as discontinued operation.
The increasingly challenging consumer context, characterized by accelerated inflation levels and a weakened purchasing power, led households to reallocate their family budgets. In this context, MC was swift to respond to evolving customer needs, prioritizing differentiated competitive offers and reinforcing savings solutions, which contributed for the company's solid performance.
During the 2Q22, MC's total turnover grew by 11.4% yoy, with the LfL at +9.8%, fuelled by a positive performance across the portfolio. While grocery formats accelerated in the quarter, outpacing market growth, non-grocery formats continued to recover from the pandemic restrictions enforced during the comparable period (LfL of +19.1%). This 2Q top line performance led the 1H22 turnover to reach €2.7bn, implying a 7.6% yoy growth (LfL of +6.0%), reflecting customers' high recognition levels. The company's online operation kept its 3% weight on total turnover, and despite the deceleration when compared to the high pandemic growth from the 1H21, remained more than 2x pre-pandemic levels.
MC continues to invest in the expansion, modernisation and refurbishment of its store network, as well as in the development of its digital and logistic capabilities, with capex amounting to $€44m$ in the 2Q.
Regarding profitability, the positive evolution of the top line in the 1H22 helped to contain the pressures on the cost base, notably due to energy and fuel price
increases, leading underlying EBITDA to grow to €242m with the margin standing at 9.0%.
Considering the positive operational performance, the execution of its investment plan and the working capital impacts, MC was able to deliver a sound FCF generation in the 1H22, €36m higher than in the same period of last year, even after the dividend payment of €243m. Consequently, MC's net financial debt reached €628m at the end of June and the ratio total net debt/underlying EBITDA stood at 3.1x (vs 3.3x in the 1H21). Additionally, and in this last quarter, MC closed the first Iberian ESG linked supply chain financing solution aiming to foster and support suppliers ESG transition and commitments.
<sup>1 For more information please see MC 1H22 results in www.sonae.pt
Worten posted a strong set of results in the 2Q22, fully recovering from a challenging first quarter resulting from tough comparable sales in 1Q21, due to stellar sales of IT related products during the lockdown, and the slow sales of heating products following this year mild winter. The 2Q22 was marked by a market recovery in a context of widespread inflation.
Worten turnover grew by 5.9% yoy to €261m in the 2Q22 (LfL of +4.2%), with positive contributions from both geographies. This good top line performance more than offset the previously reported sales gap versus last year, leading 1H22 turnover to grow by 0.6% yoy, reaching €521m.
The online channel continues to be an important growth avenue, now representing 15.6% of total turnover, which is below the exceptionally high rates observed during the lockdown periods but is significantly higher than the prepandemic levels (5% in 1H19).
The top line increase in 2Q22 and the improved operational margin, resulting from a more services oriented and favourable sales mix, did not fully offset the operational cost increases, due to higher staff costs (as stores had restricted operation hours last year), higher energy and fuel prices and the company's continued investment in its digital transformation and in evolving its business
model. Consequently, underlying EBITDA stood at €12m in 2Q22 (4.7% margin) and €26m in 1H22 (4.9% margin), standing below the high 1H21 profitability level, but clearly above previous comparable periods.
Sierra recorded a positive 2Q22 at its shopping centre portfolio, its services business and on the execution of its growth avenues. Tenant sales at its European shopping centre portfolio outperformed 2019 levels by 8.3%, consistently across all countries. Sierra's services business recorded a 22.7% yoy top line increase and the execution of its development pipeline and investment management strategy also evolved favourably.
Sierra's European shopping centre portfolio recorded a c.60% yoy (LfL) increase in tenant sales, and a higher occupancy rate of 97.2%. This positive operational performance enabled a reduction of the rental discounts, which are converging to 2019 levels. Furthermore, the resilience of the portfolio was further evidenced through high collection rates and the increase in valuations, which was mainly driven by operational improvements.
In terms of strategy execution, the company has been making significant progress, namely by (i) executing the conversion of its development pipeline in projects under construction, (ii) entering the final phases of execution of new investment vehicles, and (iii) signing new contracts for retail and condominium management, for leasing services, as well as for new projects.
Jun22
Net Result
YE21
On a proportional accounting basis, in 1H22 total Net Result reached €28.1m,
a strong improvement when compared to the same period of last year, with a contribution of +€20.2m from the Direct Result and of $+67.9$ m from the Indirect Result.
Regarding NAV, according to INREV methodology, Sierra registered an increase of 5.7% at the end of June vs. YE21, mainly driven by the aforementioned positive Net Resut in the period and a favourable FX impact related to the appreciation of the Brazilian Real and the Colombian Peso.
Finally, and in what concerns the company's leverage profile, Sierra's gross loan-to-value reduced by 1.5pp, when compared to YE21, to 44.3%, once again in line with its targets.
For our fashion business, the 2Q22 continued to be impacted by a demanding context, with the conflict in Ukraine affecting consumer confidence and the inflationary trends pressuring consumers disposable income. Notwithstanding, Zeitreel has been proving its resilience, leveraging a diverse portfolio of brands and channels, with turnover recovering to pre-pandemic levels. In the 2Q22 total turnover reached €78m, +4.3% yoy (LfL of +6.2%) and in 1H22, top line stood at $\epsilon$ 174m, +28.1% yoy and a LfL of +32.8%, both in line with 2019 figures.
Online sales weight reached 8.9% of total turnover in 1H22, showing a correction from last year's figure that was influenced by a large period with limitations in store operations, but continuing above pre-pandemic levels, leveraged by an omnichannel approach.
Following top line performance, Zeitreel delivered an underlying EBITDA of €1.3m in the 2Q and of $\epsilon$ 7.3m in the 1H22, a significant improvement of $\epsilon$ 5.9m vs last year, despite the additional cost pressures in relevant cost lines, such as utilities, staff and logistic costs, offset by a leaner cost base implemented in the last few years and that led to efficiency gains.
Underlying EBITDA $\epsilon$ m)
During the 2Q22, Universo's activity continued to show a positive evolution, with the credit backbook building up and phasing-out from the previous business model.
Despite the macroeconomic context affecting consumers' confidence. Universo's production continued to register a clear recovery from last year, fuelled by all business lines. In the 2Q22, Universo production increased 13% yoy, leading to a total production of €528m in the 1H22, +17% yoy.
The client base surpassed the 1 million threshold, adding more than 90k credit card holders when compared to the end of 1H21 and 17k vs 1Q22. The company's digital footprint continued to be reinforced, with relevant investments in this channel, including the launch of Universo's digital onboarding tool. The focus on digital initiatives allowed Universo's total customer base to reach 65% of digital clients in the 1H22.
In terms of operational performance, the turnover level more than doubled in the quarter vs. 2Q21, reaching €17m in the 1H22. The company's profitability continued to recover as expected, with underlying EBITDA improving €4m in the 2Q and €6m in the 1H yoy, benefiting from a more mature credit portfolio, as aforementioned, that more than offset the impact of the company's investments on its cost structure, namely on its digital channel and customer service.
Total Production
During the last three months, Bright Pixel continued its portfolio management activity, namely through exit movements and investments in (i) new companies and (ii) follow-ons in some of its portfolio companies.
On the exit side, Bright Pixel agreed to sell, jointly with remaining minority shareholders, the total share capital and voting rights of Maxive, the holding company that aggregates S21sec and Excellium, to Thales Europe (estimated capital gain of €63m), with closing pending from customary regulatory approvals. Additionally, the company sold its minority stake in Cellwize, a company in its portfolio since 2019, to Qualcomm Technologies (total proceeds of €22.5m, and an estimated capital gain of €13.8m).
On the portfolio expansion, Bright Pixel concluded two new investments totalling €12.8m in Retail Tech and Digital Infrastructure segments; and completed followon investments in some of its portfolio companies, namely Sales Layer and Portainer io in financing rounds of US\$25m and US\$6.2m, respectively.
Overall, the cash invested in the active portfolio reached €171m at the end of the 1H22, +8.1% QoQ and +2.2% YTD. NAV stood at €416.5m, +10.1% QoQ and +5.4% vs YE21, driven by the new investments coupled with the positive evolution of the current portfolio value, which more than offset the companies' exits.
NOS published its 2Q22 results on July 20th. Turnover increased by 8.1% yoy in the quarter to €369m, with a growth of 68.1% yoy in the Media & Entertainment segment and of 5.6% yoy in the telecom business. The quarter was marked by a strong return of spectators to the cinemas in a path of fast convergence to the pre-pandemic levels. In the telecom business, the positive evolution was driven by both B2B and B2C service solutions, the latter mainly due to an increase in net subscribers of the mobile services, and by a recovery in roaming revenues. All in all, in 1H22 turnover stood at €742m, implying a 9.4% vov increase.
Regarding profitability, 2Q22 EBITDA grew 5.4% yoy to €163m and +5.1% yoy in the 1H22 to $\epsilon$ 322m, with a 43.4% margin. Net income increased 2.0% yoy in the 2Q22 to €44m, implying an equity method contribution to Sonae's results of €10m in the quarter, reaching €19m in the 1H22.
FCF (ex-dividend, financial investments and own shares) totalled $\epsilon$ 30.6m in the quarter, slightly above 2Q21, as higher EBITDA levels more than offset the increased capex related to the 5G deployment programme and the FttH3 network expansion.
In terms of capital structure, after the dividend payment of €142m, in line with last year, net financial debt/EBITDA after lease payments stood at 2.15x.
Cash invested in the
active portfolio $\epsilon$ m) $(12.2%$ $171$ 168 YE21 Jun22
<sup>2 For more information please see NOS 1H22 results in www.nos.pt
$3$ FttH - Fiber to the Home
ISRG continued to improve its operational performance with sales already surpassing pre-pandemic levels both from organic operations and from the recently acquired businesses. The top line performance is in fact encouraging considering the macroeconomic context and the sector's trade environment still marked by several supply chain disruptions.
In the L3M 22 (feb-apr), total sales increased by 80% yoy to €255m, fuelled by all brands that are recovering from last year's COVID-19 restrictions in Spain and lockdown in Portugal. Total sales registered a double-digit growth in the L6M 22 of more than 71% yoy, reaching €621m. The online channel continued to expand its contribution already reaching 20.2% of the top line in the L6M 22, mainly fuelled by Deporvillage's acquisition in 2021.
Regarding profitability, despite the increased pressure in the cost base, mainly from energy and transportation costs, together with some channel mix affecting the margin, the top line strong recovery led to an increase in the EBITDA level of €15m vov in the quarter, and of €18m in the L6M 22 to €49m.
All in all, the company's equity contribution to Sonae's results increased €3.0m to €1.7m in the quarter, totalling €8.3m in the L6M 22 (+€5.1m yoy).
<sup>4 Due to calendar reporting dates of JD Sports (the main shareholder of the JV), ISRG figures for the L6M 22 ended last April 30th.
Sonae SGPS, S.A. informs on transactions by Persons Discharging Managerial responsibilities. Sonae SGPS, S.A. informs on own shares delivered to Group directors and employees.
Sonae SGPS, S.A. informs on Resolutions taken at Sonae Shareholders Annual General Meeting. Sonae SGPS, S.A. informs about dividend payment.
Sonae SGPS, SA informs on 2021 MC Annual Report.
Sonaecom, a Sonae subsidiary, informed that its subsidiary Sonae Investment Management - Software and Technology, SGPS, S.A. ("Bright Pixel") reached an agreement with Thales Europe, S.A. to sell the total share capital and voting rights of Maxive - Cybersecurity, SGPS, S.A. ("Maxive"), a holding company that aggregates S21sec and Excellium. The transaction has an underlying Enterprise Value of Maxive of €120 million and is estimated to have a positive impact on the Consolidated Results of Sonaecom amounting to approximately €63 million. These amounts may vary considering the effective closing date of the transaction and the respective financial performance of Maxive until then. The completion of the transaction is still subject to the fulfilment of customary conditions and regulatory approval, being expected to occur until the end of November 2022.
| $\epsilon$ m | 1H21 R | 1H 22 | yoy | 2Q21 R | 2Q22 | yoy |
|---|---|---|---|---|---|---|
| Turnover | 3,195 | 3,447 | 7.9% | 1,600 | 1,771 | 10.7% |
| Underlying EBITDA | 246 | 259 | 5.2% | 136 | 139 | 1.8% |
| margin | 7.7% | 7.5% | $-0.2$ p.p. | 8.5% | 7.8% | $-0.7$ p.p. |
| Equity method results* | 33 | 44 | 36.2% | 17 | 20 | 15.2% |
| Sierra | 11 | 19 | 78.0% | 6 | 10 | 58.6% |
| NOS | 18 | 19 | 5.2% | 11 | 10 1 | $-9.6%$ |
| ISRG | 3 | 8 | 156.9% | $-1$ | $\overline{2}$ | |
| Non-recurrent items | 10 | 16 | 57.4% | 10 | 13 | 35.0% |
| EBITDA | 289 | 319 | 10.6% | 164 | 172 | 5.2% |
| margin | 9.0% | 9.3% | $0.2$ p.p. | 10.2% | 9.7% | $-0.5$ p.p. |
| D&A | $-102$ | $-109$ | $-6.7%$ | $-51$ | $-55$ | $-7.9%$ |
| D&A - RoU | $-63$ | $-65$ | $-2.9%$ | $-32$ | $-33$ | $-2.4%$ |
| Prov and imp. | $-19$ | $\mathbf{1}$ | 1 | $\circ$ | ||
| EBIT | 105 | 147 | 39.1% | 82 | 85 | 4.0% |
| Net Financial results | $-52$ | $-43$ | 17.2% | $-25$ | $-21$ | 16.8% |
| Taxes | 1 | $\overline{2}$ | 27.3% | $-1$ | $-1$ | $-1.5%$ |
| Direct result | 54 | 105 | 92.9% | 55 | 63 | 13.6% |
| Indirect result | 15 | 39 | 163.9% | 10 | 30 | 187.9% |
| Net result | 69 | 144 | 108.2% | 66 | 93 | 41.4% |
| Non-controlling int. | $-7$ | $-26$ | $-4$ | $-18$ | ||
| Net result group share | 62 | 118 | 89.1% | 62 | 76 | 22.5% |
R - Restated as Maxive from Bright Pixel was considered as asset held for sale and all periods since 1Q21 were restated to consider
This asset as discontinued operation.
* Equity method results: include direct income by equity method results from Sierra statutory accounts, income related to investments
* Equity method results: include direct income b
| $\infty$ | 30.06.21 31.03.22 30.06.22 | ||
|---|---|---|---|
| TOTAL ASSETS | 7,872 | 8,293 | 8,218 |
| Non current assets | 6,245 | 6,511 | 6,545 |
| Net fixed assets | 2,058 | 2,116 | 2,119 |
| Net Rights of Use | 1,022 | 1,012 | 995 |
| Goodwill | 667 | 733 | 718 |
| Investment properties | 317 | 321 | 341 |
| Other investments | 1,780 | 1,919 | 1,967 |
| Deferred tax assets | 362 | 368 | 367 |
| Others | 39 | 42 | 37 |
| Current assets | 1,627 | 1,782 | 1,673 |
| Stocks | 578 | 649 | 688 |
| Trade debtors | 114 | 138 | 110 |
| Liquidity | 551 | 632 | 426 |
| Others ® | 383 | 363 | 449 |
| SHAREHOLDERS' FUNDS | 2,357 | 3,169 | 3,089 |
| Equity holders | 1,989 | 2,631 | 2,612 |
| Attributable to minority interests | 368 | 537 | 477 |
| LIABILITIES | 5,515 | 5,124 | 5,128 |
| Non-current liabilities | 3,502 | 2,861 | 2,929 |
| Bank loans | 1,162 | 855 | 926 |
| Lease liabilities | 1,080 | 1,073 | 1,065 |
| Other loans | 675 | 311 | 310 |
| Deferred tax liabilities | 474 | 500 | 499 |
| Provisions | 19 | 22 | 21 |
| Others | 92 | 101 | 107 |
| Current liabilities | 2,013 | 2,263 | 2,200 |
| Bank loans | 215 | 393 | 292 |
| Lease liabilities | 105 | 103 | 100 |
| Other loans | 15 | 34 | 29 |
| Trade creditors | 1,019 | 1,154 | 1,161 |
| Others (2) | 659 | 579 | 617 |
| SHAREHOLDERS' FUNDS + LIABILITIES | 7,872 | 8,293 | 8,218 |
(1) includes assets classified as held for sale. (2) includes liabilities directly associated with assets classified as held for sale.
Note: The consolidated financial information contained in this report was prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. The financial information regarding quarterly and semi-annual figures was not subject to audit procedures.
| Aggregated online sales |
Online sales including marketplaces, considering 100% ownership of all Sonae's businesses (fully and equity consolidated). |
|---|---|
| Capex | Investments in tangible and intangible assets and investments in acquisitions. For NOS it includes right of use. |
| Direct results | Results before non-controlling interests excluding contributions to indirect results. |
| (Direct) EBIT | Direct EBT - financial results. |
| EBITDA | Underlying EBITDA + equity method results + non-recurrent items. |
| EBITDA margin | EBITDA / turnover. |
| (Direct) EBT | Direct results before taxes. |
| EoP | End of period. |
| Indirect results | Includes Sierra's results, net of taxes, arising from: (i) investment property valuations; (ii) capital gains (losses) on the sale of financial investments, joint ventures or associates; (iii) impairment losses of non-current assets (including goodwill) and (iv) provision for assets at risk. Additionally and concerning the remaining Sonae's portfolio, it incorporates: (i) impairments in retail real estate properties; (ii) reductions in goodwill; (iii) provisions (net of taxes) for possible future liabilities and impairments related with non-core financial investments, businesses, assets that were discontinued (or in the process of being discontinued/repositioned); (iv) results from mark to market methodology of other current investments that will be sold or exchanged in the near future and from other related income (including dividends); and (v) other non-relevant issues. |
| Investment properties |
Shopping centres in operation owned and co-owned by Sierra. |
| Lease Liabilities | Net present value of payments to use the asset. |
| Like for Like sales (LfL) |
Sales made by omnichannel stores that operated in both periods under the same conditions. Excludes stores opened, closed or which suffered major upgrade works in one of the periods. |
| Loan to Value (LTV) - Sierra |
Total debt / (Investment properties + properties under development), on a proportional basis. |
| INREV NAV Sierra | Open market value attributable to Sierra - net debt -minorities + deferred tax liabilities. |
| Net asset value (NAV) of the investment portfolio |
Market value of each Sonae's businesses - average net debt - minorities (book value) |
| Net debt | Bonds + bank loans + other loans + shareholder loans - cash - bank deposits - current investments - other long-term financial applications. |
| Net financial debt | Net debt excluding shareholders' loans. |
| Net invested capital | Total net debt + total shareholders' funds. |
| Open market Value (OMV) |
Fair value of properties in operation (% of ownership), provided by independent international entities and book value of development properties (% of ownership). |
| Other loans | Bonds and derivatives. |
| Right of use (RoU) | Lease liability at the beginning of the lease adjusted for, initial direct costs, advance rent payments and possible lease discounts. |
| RoIC | Return on invested capital. |
| Total Net Debt | Net Debt + lease liabilities |
| Total Shareholder Return (TSR) |
Profit or loss from net share price change, plus any dividends received over a given period. |
| Underlying EBITDA | Recurrent EBITDA from the businesses consolidated using the full consolidation method. |
| Underlying EBITDA margin |
Underlying EBITDA / turnover. |
麻麻
Qualified shareholding, by reference to 30th June 2022 (shareholders who hold a stake equal to or greater than 2% of the share capital of Sonae SGPS, SA), consistent with the dete of article 16 and article 248-B of the Por paragraph 1, subparagraph b), of the Portuguese Securities Market Commission (CMVM) Regulation no. 05/2008:
| Shareholder | Nr. of shares | % Share capital and voting rights* |
% of exercisable voting rights** |
|---|---|---|---|
| Efanor Investimentos, SGPS, S.E. (I) | |||
| Directly | 200 100 000 | 10,0050% | 10,4204% |
| By Pareuro, BV (controlled by Efanor Investimentos, SGPS, S.E.) | 849.533.095 | 42,4767% | 44,2404% |
| By Maria Margarida CarvalhaisTeixeira de Azevedo (Director of Efanor Investimentos, SGPS, S.E.) | 14.901 | 0,0007% | 0.0008% |
| By Maria Cláudia Teixeira de Azevedo (Director of Efanor Investimentos, SGPS, S.E.) | 1.017.900 | 0,0509% | 0,0530% |
| By Duarte Paulo Teixeira de Azevedo (Director of Sonae, SGPS, S.A. and Efanor Investimentos, SGPS, S.E.) | 375,768 | 0.0188% | 0,0196% |
| By Ângelo Gabriel Ribeirinho dos Santos Paupério (Director of Sonae, SGPS, S.A. and Efanor Investimentos, SGPS, S.E.) |
1.007.523 | 0,0504% | 0,0525% |
| By Migracom, S.A. (company controlled by Efanor Investimentos, SGPS, S.E., and Sonae, SGPS, S.A.'s Director Duarte Paulo Teixeira de Azevedo) |
4.221.599 | 0.2111% | 0.2198% |
| By Linhacom, SGPS, S.A. (company controlled by Efanor Investimentos, SGPS, S.E and Sonae, SGPS, S.A.'s Director Maria Cláudia Teixeira de Azevedo) |
189.314 | 0,0095% | 0,0099% |
| By Enxomil - Consultoria e Gestão, SA (company controlled by Efanor Investimentos, SGPS, S.E and Sonae, SGPS, S.A.'s Director Ângelo Gabriel Ribeirinho dos Santos Paupério) |
2.021.855 | 0.1011% | 0,1053% |
| By Enxomil - Sociedade Imobiliária, SA (company controlled by Efanor Investimentos, SGPS, S.E., and Sonae, SGPS, S.A.'s Director Ângelo Gabriel Ribeirinho dos Santos Paupério) |
662.987 | 0.0331% | 0,0345% |
| By Carlos António Rocha Moreira da Silva (Director of Efanor Investimentos, SGPS, S.E.) | 50,000 | 0.0025% | 0.0026% |
| Total attributable to Efanor Investimentos, SGPS, S.E. | 1.059.194.942 | 52,9597% | 55,1588% |
| Criteria Caixa, S.A. | 40.019.035 | 2,0010% | 2,0840% |
| Total attributable to Criteria Caixa, S.A. | 40.019.035 | 2.0010% | 2,0840% |
Source: communications received by the Company regarding qualified shareholdings up to 30th June 2022.
(I) As from 29th November 2017, Efanor Investimentos SGPS, S.E. ceased to have any controlling shareholder pursuant to the set forth in articles 20 and 21 of the Portuguese Securities Code.
* Voting rights calculated based on the Company's share capital with voting rights, as per subparagraph b) of paragraph 3 of article 16 of the Portuguese Securities Code.
**Voting rights calculated based on the Company's s
The signatories individually declare that, to their knowledge, the Management Report, the Consolidated and Individual Financial Statements and other accounting documents required by law or regulation were prepared meeting the standards of the applicable International Financial Reporting Standards as endorsed by the European Union, giving a truthful (fairly) and appropriate image, in all material respects, of the assets and liabilities, financial position and the consolidated and individual results of the issuer and that the Management Report faithfully describes the progress of the business and position of the issuer and of the companies included the consolidation perimeter and contains a description of the major risks and uncertainties that they face.
Maia, 27 of July 2022
The Board of Directors,
Consolidated Financial Statements 1H22
(Amounts expressed in euro)
(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)
| Notes | 30 Jun 2022 | 30 Jun 2021 | 31 Dec 2021 | |
|---|---|---|---|---|
| ASSETS | ||||
| NON-CURRENT ASSETS: | ||||
| Property, plant and equipment | 5 | 1,667,575,920 | 1,635,299,950 | 1,681,657,450 |
| Intangible assets | 6 | 451,918,259 | 422,217,488 | 442,752,572 |
| Right of use assets | $\overline{7}$ | 995,337,530 | 1.022.678.261 | 1.019.952.622 |
| Investment properties | 340,502,528 | 317,428,850 | 319,872,797 | |
| Goodwill | 8 | 718,313,976 | 667,058,566 | 732,295,344 |
| Investments in joint ventures and associates | 9 | 1,564,016,574 | 1,570,754,285 | 1,514,650,086 |
| Assets at fair value through profit and loss | 10 | 202,219,695 | 79,154,922 | 164,269,283 |
| Assets to fair value through other comprehensive income | 10 | 184,266,060 | 116,111,989 | 137,578,854 |
| Other investments | 12 | 16,411,873 | 14,203,843 | 14,984,400 |
| Deferred tax assets | 11 | 366,577,552 | 361,950,446 | 358,580,253 |
| Other non-current assets | 37,434,004 | 38,980,408 | 33,694,609 | |
| Total Non-Current Assets | 6,544,573,971 | 6,245,839,008 | 6,420,288,270 | |
| CURRENT ASSETS: | ||||
| Inventories | 687,528,833 | 578,082,635 | 633,566,900 | |
| Trade receivables and other current assets | 402,123,053 | 307,014,890 | 333,903,265 | |
| Income tax assets | 36,384,547 | 42,780,599 | 35,193,981 | |
| Other tax assets | 46,000,499 | 41,496,043 | 39,176,930 | |
| Other investments | 12 | 2,060,870 | 10,018,015 | 7,107,031 |
| Cash and bank balances | 13 | 424,365,589 | 541,155,252 | 825,063,052 |
| Total Current Assets | 1,598,463,391 | 1,520,547,434 | 1,874,011,159 | |
| Assets classified as held for sale | 14 | 74,518,356 | 106,423,044 | 22,813,863 |
| TOTAL ASSETS | 8,217,555,717 | 7.872.809.486 | 8,317,113,292 | |
| EQUITY AND LIABILITIES | ||||
| EQUITY: | ||||
| Share capital | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |
| Own shares | (83, 289, 200) | (88,539,491) | (88,539,491) | |
| Legal reserve | 299,347,551 | 281,215,564 | 281,215,564 | |
| Reserves and retained earnings | 277,911,754 | (265,612,767) | 80,890,373 | |
| Profit/(Loss) for the period attributable to the equity holders of the Parent Company | 118,055,337 | 62,429,059 | 267,652,127 | |
| Equity attributable to the equity holders of the Parent Company | 2,612,025,443 | 1,989,492,365 | 2,541,218,573 | |
| Equity attributable to non-controlling interests | 15 | 477,044,879 | 368,194,813 | 604,175,944 |
| TOTAL EQUITY | 3,089,070,322 | 2,357,687,178 | 3,145,394,517 | |
| LIABILITIES: | ||||
| NON-CURRENT LIABILITIES: | ||||
| Loans | 16 | 1,236,488,471 | 1,837,185,861 | 1,097,360,407 |
| Lease liabilities | $\overline{7}$ | 1,064,587,796 | 1,079,600,363 | 1,074,782,608 |
| Other non-current liabilities | 107,268,208 | 91,878,398 | 96,920,514 | |
| Deferred tax liabilities | 11 | 499,381,046 | 473,989,932 | 495,286,636 |
| Provisions | 17 | 21,083,501 | 19,074,531 | 21,476,976 |
| Total Non-Current Liabilities | 2,928,809,022 | 3,501,729,085 | 2,785,827,141 | |
| CURRENT LIABILITIES: | ||||
| Loans | 16 | 320,915,212 | 229,686,161 | 317,169,593 |
| Lease liabilities | $\overline{7}$ | 100,086,444 | 105,332,177 | 106,409,731 |
| Trade payables and other current liabilities | 1,636,166,918 | 1,517,401,646 | 1,836,391,304 | |
| Income tax liabilities | 21,846,880 | 29,351,239 | 20,903,844 | |
| Other tax liabilities | 84,529,738 | 74,261,366 | 100,846,896 | |
| Provisions | 17 | 3,948,620 | 7,095,596 | 4,170,266 |
| Total Current Liabilities | 2,167,493,812 | 1,963,128,185 | 2,385,891,634 | |
| Liabilities directly associated with assets classified as held for sale | 14 | 32,182,561 | 50,265,038 | |
| TOTAL LIABILITIES | 5,128,485,395 | 5,515,122,308 | 5,171,718,775 | |
| TOTAL EQUITY AND LIABILITIES | 8,217,555,717 | 7,872,809,486 | 8,317,113,292 |
| Notes | 2nd Quarter 2022 | 2nd Quarter 2021 Restated |
30 Jun 2022 | 30 Jun 2021 Restated Note 3 |
|
|---|---|---|---|---|---|
| Sales | 4 | 1,689,829,939 | 1.529.377.422 | 3,285,479,982 | 3,063,889,938 |
| Services rendered | 4 | 81,218,991 | 70,325,735 | 161,914,480 | 130,655,676 |
| Changes in value of investment properties | 2,770,868 | (2,133,040) | 2,770,868 | (2, 133, 040) | |
| Gains and losses on investments | 645,017 | 11,242,474 | (236, 166) | 8,252,654 | |
| Gains and losses on investments recorded at fair value through profit and loss |
10.3 | 27,361,552 | (1,823,938) | 41,297,761 | 4,120,431 |
| Other income | 18 | 50,974,779 | 31,497,462 | 87,153,835 | 66,069,770 |
| Cost of goods sold and materials consumed | (1,203,812,325) | (1,075,756,772) | (2,349,463,623) | (2,192,752,009) | |
| Changes in inventories of finished goods and work in progress | 138,656 | 824,119 | 1,350,727 | 99,667 | |
| External supplies and services | (199, 679, 476) | (184, 640, 846) | (395,049,273) | (356, 134, 750) | |
| Employee benefits expense | (244, 607, 698) | (220, 432, 988) | (474, 733, 748) | (432, 671, 323) | |
| Other expenses | (37,956,852) | (17,756,509) | (61,522,840) | (40, 202, 191) | |
| Depreciation and amortisation expenses | 5.6 and 7 | (87,190,039) | (82, 413, 232) | (173, 253, 568) | (164, 630, 266) |
| Impairment losses | 1.150.157 | 913.766 | 2.237.208 | (9.012.668) | |
| Provisions | (630,013) | 14,623 | (783, 655) | (3,737,894) | |
| Profit from continuing operations before interests, dividends, share of profit or loss of joint ventures and associates and tax |
80,213,556 | 59,238,276 | 127,161,988 | 71,813,995 | |
| Dividends received during the year | 12.288.549 | 10.764.000 | 12 28 8.549 | 10,764,000 | |
| Share of profit or loss of joint ventures and associates | 9 | 26,191,321 | 24,800,662 | 52,315,832 | 43,619,622 |
| Financial income | 19 | 44,108,219 | 9,760,923 | 55,582,103 | 19,764,617 |
| Financial expense | 19 | (64,918,582) | (34, 776, 739) | (98,923,558) | (72,109,011) |
| Profit/(Loss) after before taxation from continuing operations | 97,883,063 | 69,787,122 | 148,424,914 | 73,853,223 | |
| Income tax expense | (3,457,501) | (5,374,639) | (2,031,705) | (4,771,357) | |
| Profit/(Loss) after taxation from continuing operations | 94,425,562 | 64,412,483 | 146,393,209 | 69,081,866 | |
| Profit/(Loss) from discontinued operations after taxation | (1,239,718) | 1,498,346 | (2,078,071) | 245,461 | |
| Consolidated profit/(Loss) for the period | 93,185,844 | 65,910,829 | 144,315,138 | 69,327,327 | |
| Attributable to equity holders of the Parent Company: | |||||
| Continuing operations | 21 | 76.482.955 | 61,359,483 | 119.402.031 | 63.858.365 |
| Discontinued operations | 21 | (803, 400) | 428,288 | (1,346,694) | (1,429,306) |
| 75.679.555 | 61.787.771 | 118.055.337 | 62.429.059 | ||
| Attributable to non-controlling interests: | |||||
| Continuing operations | 17,942,607 | 3,052,998 | 26,991,178 | 5,223,501 | |
| Discontinued operations | (436,318) | 1.070.058 | (731, 377) | 1.674.767 | |
| 15 | 17,506,289 | 4,123,056 | 26,259,801 | 6,898,268 | |
| Profit/(Loss) per share | |||||
| Continuing operations | |||||
| Basic | 21 | 0.039899 | 0.032152 | 0.062288 | 0.033461 |
| Diluted | 21 | 0.039755 | 0.030041 | 0.062064 | 0.031265 |
| Discontinued operations | |||||
| Basic | 21 | (0.000419) | 0.000224 | (0.000703) | (0.000749) |
| Diluted | 21 | (0.000418) | 0.000210 | (0.000700) | (0.000700) |
(Amounts expressed in euro)
(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)
| Notes | 2nd Quarter 2022 | 2nd Quarter 2021 Restated |
30 June 2022 | 30 Jun 2021 Restated Note 3 |
|
|---|---|---|---|---|---|
| Net Profit / (Loss) for the period | 93.185.844 | 65.910.829 | 144.315.138 | 69.327.327 | |
| Items that may be reclassified subsequently to profit or loss: | |||||
| Exchange differences on translation of foreign operations | (214, 063) | (5, 267, 657) | (4,520,867) | (3,393,664) | |
| Share of other comprehensive income of joint ventures and associates | 9 | (3,569,953) | 24.877.517 | 36,441,224 | 14,483,242 |
| Changes in cash flow hedging reserve | 3,672,518 | 3.200.416 | 9.389.135 | 6.962.746 | |
| Income tax relating to items that may be reclassified subsequently to profit or loss |
(362, 256) | 53.043 | (769, 875) | (302, 757) | |
| Others | 716,796 | (22, 473) | 1,042,460 | 103,287 | |
| Items from other comprehensive income that may be reclassified subsequently to profit or loss |
243.041 | 22.840.846 | 41,582,076 | 17,852,854 | |
| Items that won't be reclassified subsequently to profit or loss: | |||||
| Changes value of financial assets at fair value | 10.3 | (930, 114) | 3,675,393 | 12,545,700 | 3,932,201 |
| Total other comprehensive income for the period | (687.073) | 26.516.239 | 54.127.776 | 21.785.055 | |
| Total comprehensive income for the period | 92.498.771 | 92.427.068 | 198.442.914 | 91,112,382 | |
| Attributable to: | |||||
| Equity holders of parent company | 74.629.234 | 83.947.484 | 167.773.437 | 81531872 | |
| Non controlling interests | 17,869,537 | 8,479,584 | 30,669,477 | 9,580,510 |
(Amounts expressed in euro)
(Amounts expressed in euro)
Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails.)
| Reserves and Retained Earnings | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes | Share Capital |
Own Shares |
Legal Reserve |
Currency Translation Reserve |
Investments Fair Value Reserve |
Cash-flow Hedging Reserve |
Other Reserves and Retained Earnings |
Total Reserves and Retained Earnings |
Net Profit/(Loss) | Total | Non controlling Interests (Note 14) |
Total Equity |
|
| Attributable to Equity Holders of Parent Company | |||||||||||||
| Balance as at 1 January 2021 | 2,000,000,000 | (93,340,758) | 277,452,299 | 873,305 | (25, 569, 631) | 643,746 | (238, 214, 322) | (262, 266, 902) | 70,944,578 | 1,992,789,217 | 447,063,129 | 2,439,852,346 | |
| Total comprehensive income for the period | $\sim$ | (2,954,665) | 3,893,695 | 6,382,012 | 11,781,771 | 19,102,813 | 62,429,059 | 81,531,872 | 9,580,510 | 91,112,382 | |||
| Appropriation of consolidated net profit of 2020 | |||||||||||||
| Transfer to legal reserves and retained earnings | $\sim$ | $\sim$ | 3,763,265 | $\sim$ | 67,181,313 | 67,181,313 | (70.944.578) | ||||||
| Dividends distributed | $\sim$ | ALC | $\sim$ | COL | (93,023,122) | (93,023,122) | - 11 | (93,023,122) | (2.976.114) | (95,999,236 | |||
| Income distribution from investment funds | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | (120.102) | (120.104) | |
| Obligation fulfield by share attribution to employees | $\overline{\phantom{a}}$ | $\sim$ | (143.656) | (143.656) | $\sim$ | (143, 656) | (7.654) | (151.310) | |||||
| Partial cancellation of Cash Settled Equity Swap | $\sim$ | 4,801,267 | $\sim$ | COLOR | CONTRACTOR | $\sim$ | 1.184.790 | (1,184,790) | $\sim$ | 3,616,477 | 1999 | 3,616,477 | |
| Variation in percentage of subsidiaries | $\sim$ | $\sim$ | COL | COLOR | 4,797,211 | 4,797,211 | $\sim$ | 4,797,211 | (84,969,678) | (80,172,467 | |||
| Capital decrease | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\sim$ | . | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | (427, 203) | (427, 203) | |
| Others | $\overline{\phantom{a}}$ | $\sim$ | (75, 634) | (75, 634) | $\overline{\phantom{a}}$ | (75, 634) | 51,925 | (23, 707) | |||||
| Balance as at 30 June 2021 | 2,000,000,000 | (88,539,491) | 281,215,564 | (2,081,360) | (21, 675, 936) | 7,025,758 | (248, 881, 229) | (265, 612, 767) | 62,429,059 | 1,989,492,365 | 368,194,813 | 2,357,687,178 | |
| Balance as at 1 January 2022 | 2.000.000.000 | (88,539,491) | 281.215.564 | (183, 979) | (2,373,046) | 13,112,800 | 70.334.598 | 80,890,373 | 267.652.127 | 2.541.218.573 | 604,175,944 | 3.145.394.517 | |
| Total comprehensive income for the period | (3.349.697) | 12.545.700 | 6.684.267 | 33,837,830 | 49,718,100 | 118.055.337 | 167,773,437 | 30.669.477 | 198.442.914 | ||||
| Appropriation of consolidated net profit of 2021 | |||||||||||||
| Transfer to legal reserves and retained earnings | $\sim$ | 18,131,987 | 249,520,140 | 249,520,140 | (267, 652, 127) | $\sim$ | |||||||
| Dividends distributed | $\overline{\phantom{a}}$ | $\sim$ | (98, 125, 997) | (98, 125, 997) | - 11 | (98, 125, 997) | (71, 170, 452) | (169, 296, 449) | |||||
| Obligation fulfield by share attribution to employees | $\overline{\phantom{a}}$ | 5,250,291 | $\sim$ | (568, 885) | (568, 885) | 4,681,406 | (241, 943) | 4,439,463 | |||||
| Variation in percentage of subsidiaries | $\sim$ | (3,500,462) | (3,500,462) | - 11 | (3,500,462) | (80,027,984) | (83,528,446 | ||||||
| Capital decrease | $\sim$ | $\sim$ | $\sim$ | (6,586,800) | (6, 586, 800) | ||||||||
| Others | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | (21.515) | (21, 515) | $\overline{\phantom{a}}$ | (21.515) | 226.637 | 205.124 | ||||
| Balance as at 30 June 2022 | 2.000.000.000 | (83, 289, 200) | 299.347.551 | (3,533,676) | 10.172.654 | 19,797,067 | 251,475,709 | 277.911.754 | 118.055.337 | 2.612.025.443 | 477.044.879 | 3.089.070.322 |
(Amounts expressed in euro)
(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)
| Notes | 2nd Quarter 2022 | 2nd Quarter 2021 | 30 Jun 2022 | 30 Jun 2021 | |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Net cash generated from operating activities (1) | 97.791.118 | 191,250,974 | (61, 758, 416) | (40,968,659) | |
| INVESTMENT ACTIVITIES | |||||
| Receipts arising from: | |||||
| Investments | 6,884,230 | 44,257,731 | 7,878,138 | 49,557,179 | |
| Property, plant and equipment and intangible assets | 1,644,775 | 2.632.073 | 1,974,446 | 7,401,503 | |
| Interests and similar income | 299,759 | 153.065 | 1,089,075 | 766,664 | |
| Loans granted | 3,125,570 | 5,801,925 | 3,823,828 | 5,801,925 | |
| Dividends | 23,615,852 | 11,585,012 | 25,584,796 | 12,788,475 | |
| Others | 14.384.018 | 33.899.479 | 16,090,324 | ||
| 35.570.186 | 78.813.824 | 74,249,762 | 92,406,070 | ||
| Payments arising from: | |||||
| Investments | 22 | (35,822,083) | (7, 446, 521) | (155, 517, 933) | (93,481,365) |
| Property, plant and equipment and intangible assets | (56, 544, 249) | (48.139.798) | (135, 403, 985) | (112, 664, 517) | |
| Loans granted | (1,604,573) | (1,176,939) | (11, 782, 680) | (1,854,454) | |
| Others | (103, 647) | (1,372,310) | |||
| (93,970,905) | (56,866,905) | (302, 704, 598) | (209, 372, 646) | ||
| Net cash used in/ generated by investment activities (2) | (58,400,719) | 21.946.919 | (228, 454, 836) | (116,966,576) | |
| FINANCING ACTIVITIES | |||||
| Receipts arising from: | |||||
| Loans, bonds and finance leases | 16 | 1,559,305,004 | 1,406,720,742 | 2,342,171,292 | 2,702,344,843 |
| Capital increases, additional paid in capital and share premiums | 200,000 | 200,000 | |||
| 1,559,505,004 | 1,406,720,742 | 2,342,371,292 | 2,702,344,843 | ||
| Payments arising from: | |||||
| Lease contracts | (31,705,510) | (52,705,965) | (75,959,902) | (94,007,909) | |
| Loans, bonds and finance leases | 16 | (1,497,678,475) | (1,587,195,614) | (2,187,840,230) | (2,524,643,733) |
| Interests and similar charges | (6,128,961) | (7.948.025) | (11, 713, 274) | (14, 425, 221) | |
| Reimbursement of capital and paid in capital | (6,586,800) | (427, 203) | (6,586,800) | (427,203) | |
| Dividends | (169, 421, 492) | (100, 154, 371) | (169, 421, 492) | (100, 274, 475) | |
| (1,711,521,238) | (1,748,431,178) | (2,451,521,698) | (2,733,778,541) | ||
| Net cash used in financing activities (3) | (152,016,234) | (341, 710, 436) | (109, 150, 406) | (31, 433, 698) | |
| Net increase (decrease) in cash and cash equivalents $(4) = (1) + (2) + (3)$ | (112, 625, 835) | (128, 512, 543) | (399, 363, 658) | (189, 368, 932) | |
| Effect of exchange rate changes on the balance of cash held in foreign currencies |
(176, 085) | (106, 301) | (465, 619) | (162, 342) | |
| Effect of discontinued operations | (1,044,169) | 85,275 | (1,044,169) | ||
| Cash and cash equivalents at the beginning of the period | 13 | 536,241,761 | 691,287,828 | 822,690,051 | 752,173,451 |
| Cash and cash equivalents at the end of the period | 13 | 422,747,844 | 562.966.860 | 422.747.844 | 562.966.860 |
(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)
(Amounts stated in euros)
SONAE, SGPS, S.A. ("Sonae") has its head-office at Lugar do Espido, Via Norte, Apartado 1011, 4470-909 Maia, Portugal, and is the parent company of a group of companies. Sonae's businesses and operating segments are described in Note 4.
Shares representing the share capital of Sonae, SGPS, S.A. are listed on the Euronext Lisbon stock exchange. At 30 June 2022, Sonae, SGPS, S.A. is majority owned by Pareuro BV and Efanor Investimentos SGPS, S.E., the latter being the ultimate controlling company.
The principal accounting policies adopted in preparing the accompanying consolidated financial statements are described below. These policies have been consistently applied in comparative periods.
The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, issued by the International Accounting Standards Board ("IASB"), and interpretations issued by the IFRS Interpretations Committee ("IFRIC") or by the previous Standing Interpretations Committee ("SIC"), as adopted by the European Union as from the consolidated financial statements issuance date.
Interim condensed consolidated financial statements are presented quarterly, in accordance with IAS 34 - "Interim Financial Reporting". As such, they do not include all the information to be disclosed in the annual consolidated financial statements and should therefore be read in conjunction with the consolidated financial statements for the previous year.
The accompanying condensed consolidated financial statements have been prepared from the books and accounting records of the company and subsidiaries, adjusted in the consolidation process, on a going concern basis and under the historical cost convention, except for some financial instruments and properties investments which are stated at fair value.
Up to the date of approval of these consolidated financial statements, the European Union endorsed the following standards, interpretations, amendments and revisions some of which become mandatory during the year 2022:
| Standards (new and amendments) effective Changes as at 1 January 2022 |
Effective date (for financial years beginning on or after) |
|
|---|---|---|
| IAS 16 - Proceeds before intended use | Prohibition of deducting the proceeds obtained from the sale of items produced during the testing phase, to the acquisition cost of property, plant and equipment. |
01 Jan 2022 |
| IAS 37 - Onerous contract - cost of fulfilling a contract |
Clarification about the nature of the expenses to be considered in determining whether a particular contract has become onerous. |
01 Jan 2022 |
| Annual Improvements 2018-2020 | Specific amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41. | 01 Jan 2022 |
| IFRS 3 - Reference to the Conceptual framework |
Update to references to the Conceptual Framework and clarification on the registration of provisions and contingent liabilities within the scope of a business combination. |
01 Jan 2022 |
These standards were first applied by the Group in 2022, however, the impacts were not relevant in the accompanying financial statements.
The following standards, interpretations, amendments and revisions have been endorsed by the European Union, until the date of approval of these financial statements and are mandatory for future economic years:
| Standards (new and amendments) that will become effective, on or after 1 January 2023. already endorsed by the EU |
Changes | Effective date (for financial vears beginning on or after) |
|---|---|---|
| IFRS 17 - Insurance contracts | New accounting for insurance contracts, reinsurance contracts and investment contracts with discretionary participating features. |
01 Jan 2023 |
| IFRS 17 - Insurance contracts (amendments) | The amendments to IFRS 17 relate to changes in areas such as: i) scope; ii) level of aggregation of insurance contracts; iii) recognition; iv) measurement; $v$ ) modification and derecognition; vi) presentation of the Statement of Financial Position; vii) recognition and measurement of the Income statement; and viii) disclosures. |
01 Jan 2023 |
| IAS 1 - Disclosure of accounting policies | Disclosure requirement for material accounting policies, rather than significant accounting policies. |
01 Jan 2023 |
| IAS 8 - Disclosure of accounting estimates | Definition of accounting estimate. Clarification as to the distinction between changes to accounting policies and changes to accounting estimates. |
01 Jan 2023 |
The following standards, interpretations, amendments and revisions were not at to the date of approval of these consolidated financial statements endorsed by the European Union:
| Standards (new and amendments) that will become effective, on or after 1 January 2023, not yet endorsed by the EU |
Changes | Effective date (for financial years beginning on or after) |
|---|---|---|
| IAS 1 - Presentation of financial statements - classification of liabilities |
Classification of a liability as current or non-current, depending on an entity's right to defer its payment. New definition of "settlement" of a liability. |
01 Jan 2023 |
| IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction |
Requirement to recognize deferred tax on the recognition of assets under right of use / lease liability and provisions for decommissioning / related asset, when their initial recognition gives rise to equal amounts of taxable temporary differences and deductible temporary differences, because of not being relevant for tax purposes. |
01 Jan 2023 |
| IFRS 17 - Initial Application of IFRS 17 and IFRS 9 - Comparative Information |
This amendment allows to avoid temporary accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented, when first applying IFRS 17. This amendment allows the application of a classification overlay to a financial asset for which the entity does not restate IFRS 9 comparative information. |
01 Jan 2023 |
The Group did not proceed with the early implementation of any of these standards in the financial statements for the period ended 30 June 2022 since their application is not mandatory, lying in the process of analyzing expected effects of those standards.
Following the agreement signed with Thales Europe, S.A. for the sale of share capital and voting rights of Maxive Cybersecurity, SGPS, S.A., announced on 17th May, the contribute of Maxive and its subsidiaries, for the second quarter of 2022 consolidated financial statements, were presented as discontinued operations units, in the consolidated income statements.
The restatement impact on the consolidated financial statements according to the changes described previously, for the period ended 30 June 2021 can be summarized as follows:
| 30 Jun 2021 | Before the restatement |
Discontinued operations |
After the restatement |
|---|---|---|---|
| Sales | 3,071,206,427 | 7.316.489 | 3,063,889,938 |
| Services rendered | 150,675,486 | 20,019,810 | 130,655,676 |
| Changes in value of investment properties | (2,133,040) | (2, 133, 040) | |
| Gains and losses on investments | 9.637.567 | 1,384,913 | 8,252,654 |
| Gains and losses on investments recorded at fair value through results | 2,747,813 | (1,372,618) | 4,120,431 |
| Other income | 71.080.746 | 5,010,976 | 66,069,770 |
| Cost of goods sold and materials consumed | (2,198,895,518) | (6, 143, 509) | (2,192,752,009) |
| Changes in inventories of finished goods and work in progress | 99,667 | 99,667 | |
| External supplies and services | (362,163,130) | (6,028,380) | (356, 134, 750) |
| Employee benefits expense | (447, 734, 838) | (15,063,515) | (432, 671, 323) |
| Other expenses | (40,596,223) | (394, 032) | (40, 202, 191) |
| Depreciation and amortisation expenses | (167, 535, 943) | (2,905,677) | (164, 630, 266) |
| Impairment losses | (12,351,630) | (3,338,962) | (9,012,668) |
| Provisions | (4,884,531) | (1,146,637) | (3,737,894) |
| Dividends received during the year | 10.764.000 | 10,764,000 | |
| Share of profit or loss of joint ventures and associates | 43,619,622 | 43,619,622 | |
| Financial income | 19.732.632 | (31.985) | 19,764,617 |
| Financial expense | (72,668,966) | (559, 955) | (72,109,011) |
| Profit/(Loss) before taxation from continuing operations | 70,600,141 | (3,253,082) | 73,853,223 |
| Income tax expense | (4,404,913) | 366.444 | (4,771,357) |
| Profit/(Loss) after taxation from continuing operations | 66,195,228 | (2,886,638) | 69,081,866 |
| Profit/(Loss) from discontinued operations after taxation | 3,132,099 | 2,886,638 | 245,461 |
| Consolidated profit/(Loss) for the period | 69,327,327 | 69,327,327 |
Sonae has in its portfolio 8 business segments:
These segments were identified taking into account the following criteria/conditions: the fact that they are units of the group that develop activities where income and expenses can be separately identified, in
relation to which financial information is developed separately, their operating results are regularly reviewed by management and on which it makes decisions about, for example, allocation of resources, the fact that they have similar products/services and also taking into account the quantitative threshold (as provided for in IFRS 8).
The main operating segment information as at 30 June 2022 and 2021 can be detailed as follows:
| Turnover | Depreciation and amortisation (3) |
Provisions and impairment losses (3) |
EBIT (3) | Financial results $(3)$ |
Income tax $^{(3)}$ |
|---|---|---|---|---|---|
| 2.695.420.029 | 545,406 | 109.108.354 | (35,937,398) | (8,881,685) | |
| 521.425.125 | 5.833 | (1.007.132) | (1.941.367) | 2,902,489 | |
| 55.631.109 | 1.001.250 | 28.222.690 | (3,451,830) | (966, 252) | |
| 173,523,838 | 946.167 | (13, 485, 277) | (2,104,176) | 7,674,938 | |
| 16.842.607 | (803, 397) | (6, 164, 284) | 72.387 | 2,528,821 | |
| 862.622 | (115, 415) | 12,570,517 | 2.486.567 | (4,378,855) | |
| $\sim$ | 18,518,475 | ||||
| - | - | $\overline{\phantom{a}}$ | 8.284.270 | ||
| (121, 783) | (9,511,299) | (2,465,638) | 2,688,480 | ||
| 3,447,394,462 | 1,458,061 | 146,536,314 | (43, 341, 455) | 1,567,936 | |
| (16,310,868) | (129, 958, 701) (18.480.866) (1,562,639) (17, 265, 265) (985, 298) (575, 618) (4,425,181) (173, 253, 568) |
| 30 Jun 2021 | Turnover | Depreciation and amortisation (3) |
Provisions and impairment losses (3) |
EBIT (3) | Financial results (3) |
Income tax $(3)$ |
|---|---|---|---|---|---|---|
| MC. | 2,504,796,958 | (124, 695, 686) | (9,510,423) | 101,622,042 | (37, 857, 110) | (9,306,226) |
| Worten | 518,088,462 | (16, 448, 831) | (3,068,525) | 4,959,520 | (2,475,010) | 2,269,882 |
| Sierra | 46,031,054 | (1,485,077) | 740,526 | 16,738,619 | (4, 175, 189) | (440, 713) |
| Zeitreel | 135,441,636 | (17, 738, 808) | 65,347 | (26, 111, 590) | (3,507,028) | 7,485,344 |
| Universo | 8,375,666 | (757, 448) | (508, 635) | (10.859.635) | (131, 292) | 2,970,744 |
| Bright Pixel | 687,382 | (496, 635) | (133, 292) | 6,356,456 | 880,746 | (3,051,915) |
| NOS | ٠ | ۰ | 17,599,433 | |||
| ISRG | - | 3,225,238 | - | |||
| Other, eliminations and adjustments (1) | (18, 875, 544) | (3,007,781) | 49,145 | (8,163,007) | (5,079,511) | 1,304,461 |
| Total consolidated - Direct | 3,194,545,614 | (164, 630, 266) | (12, 365, 857) | 105,367,076 | (52, 344, 394) | 1,231,577 |
| 30 Jun 2022 | 30 Jun 2021 | ||||||
|---|---|---|---|---|---|---|---|
| Investment (CAPEX) |
Invested capital |
Financial net debt $^{(2)(4)}$ |
Investment (CAPEX) |
Invested capital |
Financial net debt $^{(2)(4)}$ |
||
| MC | 69,909,773 | 2,496,896,960 | 1.696.880.514 | 67,981,020 | 2,564,435,306 | 1,749,602,874 | |
| Worten | 23,378,482 | 85,552,280 | ٠ | 21,187,508 | 86,089,897 | ||
| Sierra | 22,351,606 | 997,203,621 | 59,673,120 | 848,836 | 921,192,956 | 32,230,268 | |
| Zeitreel | 6,302,389 | 319,800,714 | ٠ | 5,680,006 | 308,387,949 | ||
| Universo | 584,606 | 23,095,405 | 984,985 | 30,147,667 | |||
| Bright Pixel | 26,492,641 | 317,262,128 | 3,416,286 | 4,912,543 | 223,839,356 | 9,851,493 | |
| NOS | $\sim$ | 821,428,209 | $\sim$ | 792,936,598 | |||
| ISRG | ٠ | 109,296,070 | $\overline{\phantom{a}}$ | 87,130,356 | |||
| Other, eliminations and adjustments (1) | 125,383,113 | 185,991,311 | 507,486,438 | 84,716,458 | 24,086,049 | 889,723,537 | |
| Total consolidated | 274,402,610 | 5,356,526,698 | 2,267,456,358 | 186,311,357 | 5,038,246,134 | 2,681,408,172 |
The caption "Others, eliminations and adjustments" can be analyzed as follows:
| Investment | Invested capital | |||
|---|---|---|---|---|
| 30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | |
| Inter-segment intra-groups and contributions of entities non-individualized entities as segments |
41.912.515 | 2.557.183 | 185.991.311 | 90.798.271 |
| Aquisition of an additional 10% of Sonae Sierra (Note 22) | 83.470.598 | 82.159.275 | $\sim$ | |
| Cash settled equity swap | $\sim$ | (66, 712, 222) | ||
| 125.383.113 | 84.716.458 | 185,991,311 | 24,086,049 |
All performance measures are reconciled to the financial statements in Note 23.
Net Invested capital = Net debt + Shareholder funds;
Net Financial Debt = Bonds + bank loans + other loans + shareholder loans - cash - bank deposits - current investments - excluding other long-term investments + lease liabilities;
Others, eliminations and adjustments = Intra-groups + consolidation adjustments + contributions from other companies not included in the disclosed segments by do not fit in any reportable segment, i.e., companies "other" than Sonae SGPS are included in the consolidated financial statements as of 31 December 2021, on note 53;
Investments (CAPEX) = Gross investments in Property, Plant and equipment and intangible assets and investments in acquisitions.
During the six months period ended as at 30 June 2022, the movements in Property, plant and equipment as well accumulated depreciation and impairment losses are made up as follows:
| Land and Buildings |
Plant and Machinery |
Vehicles | Fixtures and Fittings |
Other tangible assets |
Tangible assets Total tangible in progress |
assets | |
|---|---|---|---|---|---|---|---|
| Gross assets | |||||||
| Opening balance as at 1 January 2022 | 1,387,934,876 | 1,777,791,777 | 31,165,729 | 188,035,777 | 56,614,631 | 33,384,003 3,474,926,793 | |
| Investment | 10,222,445 | 2,900,955 | 17,763 | 782,953 | 393,052 | 60,466,920 | 74,784,088 |
| Acquisitions of subsidiaries | 10.944 | 96,907 | $\overline{\phantom{a}}$ | 107,851 | |||
| Disposals | (7.007.528) | (21, 393, 799) | (478.141) | (23, 405, 303) | (577, 141) | (237, 468) | (53,099,380) |
| Exchange rate effect | (162, 478) | (166, 910) | ×. | 14,108 | 265 | $\mathbf{r}$ | (315, 015) |
| Assets available for sale | (1, 374, 853) | (2,512,601) | (178, 370) | (4,092,122) | (260.141) | (40, 625) | (8, 458, 712) |
| Transfers | 2,574,250 | 47,670,409 | 87,919 | 4,731,852 | 704,317 | (56,801,967) | (1,033,223) |
| Closing balance as at 30 June 2022 | 1,392,197,656 | 1,804,386,738 | 30,614,900 | 166,067,265 | 56,874,983 | 36,770,863 3,486,912,402 | |
| Accumulated depreciation and impairment losses | |||||||
| Opening balance as at 1 January 2022 | 474,800,245 | 1,112,288,586 | 21,930,901 | 137,669,788 | 46,358,128 | 221,695 1,793,269,343 | |
| Depreciation of the period | 11,892,668 | 60,871,284 | 885,541 | 7,973,385 | 1,842,252 | ٠ | 83,465,130 |
| Impairment losses of the period (Note 17) | 1.856,714 | $\sim$ | 1,856,714 | ||||
| Reversals of impairment losses (Note 17) | (6,319,435) | (232, 188) | (4,290) | (383, 877) | ×. | (6,939,790) | |
| Acquisitions of subsidiaries | 1,459 | 76,762 | ۰ | 78,221 | |||
| Disposals | (1, 495, 510) | (19.916.073) | (430, 789) | (23, 291, 573) | (571, 392) | $\overline{\phantom{0}}$ | (45, 705, 337) |
| Exchange rate effect | (45, 269) | (82, 290) | 13,063 | 255 | $\sim$ | (114, 241) | |
| Depreciation of assets available for sale | (1,081,898) | (1,722,040) | (57,048) | (3,787,878) | (190, 455) | $\sim$ | (6,839,319) |
| Transfers | 129,298 | 47,088 | 75,049 | (258, 107) | 272,437 | 265,760 | |
| Closing balance as at 30 June 2022 | 479,738,272 | 1,151,331,130 | 22,403,654 | 118,314,388 | 47,327,348 | 221,695 | 1,819,336,482 |
| Carrying amount | |||||||
| as at 30 June 2022 | 912,459,384 | 653,055,609 | 8,211,246 | 47,752,877 | 9,547,635 | 36,549,168 1,667,575,920 |
The investment includes the acquisition of assets of approximately 63.8 million euro (56 million euro in 2021), associated with the opening and remodeling of stores of Sonae retail operating segments.
During the six months period ended 30 June 2022, the movement occurred in intangible assets and in the corresponding accumulated amortization and impairment losses, was as follows:
| Patents and other similar rights |
Software | Other intangible assets |
Intangible assets in progress |
Total intangible assets |
|
|---|---|---|---|---|---|
| Gross Assets | |||||
| Opening balance as at 1 January 2022 | 255.766.929 | 509.717.810 | 101.635.876 | 43.777.049 | 910,897,664 |
| Investment | 1.121.274 | 602.334 | 29,808 | 35,395,600 | 37,149,016 |
| Acquisitions of subsidiaries | 55.696 | 2,854,856 | 2,910,552 | ||
| Disposals | (3,930) | (28, 391) | (54,000) | (166, 719) | (253, 040) |
| Exchange rate effect | $\sim$ | 810 | $\sim$ | ٠ | 810 |
| Assets available for sale | (24, 465, 706) | (6, 545, 158) | (229, 905) | (31, 240, 769) | |
| Transfers | 39,215 | 22,501,345 | 1,682,007 | (21, 814, 420) | 2.408.147 |
| Closing balance as at 30 June 2022 | 232,457,782 | 526,304,446 | 106,148,547 | 56,961,605 | 921,872,380 |
| Accumulated Depreciation and Impairment Losses | |||||
| Opening balance as at 1 January 2022 | 67,214,679 | 341.799.904 | 59,130,509 | 468,145,092 | |
| Depreciation of the period | 501.644 | 22.068.613 | 2,590,278 | 25,160,535 | |
| Impairment losses of the period (Note 17) | $\sim$ | (117.397) | 27,300 | ×. | (90,097) |
| Acquisitions of subsidiaries | ٠ | 27.845 | 613.042 | ٠ | 640,887 |
| Disposals | (534) | (5,318) | (21, 375) | (27, 227) | |
| Exchange rate effect | ٠ | 279 | $\sim$ | 279 | |
| Depreciation of assets available for sale | (20, 147, 683) | (5,060,574) | (25, 208, 257) | ||
| Transfers | ٠ | (166) | 1,333,075 | ٠ | 1,332,909 |
| Closing balance as at 30 June 2022 | 47,568,106 | 358,713,186 | 63,672,829 | 469,954,121 | |
| Carrying Amount | |||||
| as at 30 June 2022 | 184.889.676 | 167,591,260 | 42.475.718 | 56.961.605 | 451,918,259 |
As at 30 June 2022 the Investment related to intangible assets in progress includes 30.9 million euro related to IT projects and development software. Within that amount it is included 11.9 million euro of capitalizations of personnel costs related to own work.
During the period of six months ended on 30 June 2022, the detail and the movement in the value of the rights of use, as well as in the respective depreciations, was as follows:
| Land and Buildings | Vehicles | Others assets |
Total right of use assets |
|
|---|---|---|---|---|
| Gross Assets | ||||
| Opening balance as at 1 January 2022 | 1,550,214,375 | 101,204,310 | 3,490,847 | 1,654,909,532 |
| Additions | 41,879,003 | 4,168,419 | 90,309 | 46,137,731 |
| Effect of foreign currency exchange differences | 33,255 | (7,010) | $\overline{\phantom{a}}$ | 26,245 |
| Decreases and write-offs | (47,625,061) | (8,863,476) | (1,690,974) | (58, 179, 510) |
| Closing balance as at 30 June 2022 | 1,544,501,572 | 96,502,243 | 1,890,182 | 1,642,893,997 |
| Accumulated Depreciation and Impairment Losses | ||||
| Opening balance as at 1 January 2022 | 565,582,630 | 67,834,521 | 1.539.759 | 634,956,910 |
| Depreciation of the period | 52702.916 | 11.757.749 | 167239 | 64,627,904 |
| Effect of foreign currency exchange differences | 76,430 | $\overline{\phantom{a}}$ | 76,430 | |
| Decreases and write-offs | (44, 429, 486) | (6,351,647) | (1,245,872) | (52,027,005) |
| Use of impairment losses | (77, 773) | $\overline{\phantom{a}}$ | (77, 773) | |
| Closing balance as at 30 June 2022 | 573,854,717 | 73,240,623 | 461.126 | 647,556,467 |
| Carrying Amount | ||||
| as at 30 June 2022 | 970,646,854 | 23,261,620 | 1,429,056 | 995,337,530 |
Liabilities related to rights of use are recorded under non-current and current lease liabilities of 1.065 million euros and 100 million euro respectively (1.075 million euro and 106 million euro at 31 December 2021).
In the consolidated income statement, 64.6 million euro were recognized for depreciation of the period (62.8 million euro in 30 June 2021) and 36.3 million of euro of interest relating to the adjusted debt (37.4 million euro in 30 June 2021).
Goodwill is allocated to each operating segment and within each segment to each of the homogeneous groups of cash generating units as follows:
MC, Worten and Zeitreel - Goodwill is allocated to each operating segment, being afterwards distributed by each homogenous group of cash generating units, namely to each insignia within each segment distributed by country and each of the properties in case of operating segment MC;
Sierra - The value of the Goodwill of this segment is mainly allocated to the operation of property management; and
Bright Pixel - In this segment the Goodwill is related to the technology business.
As at 30 June 2022 and 31 December 2021, the caption "Goodwill" was made as follows by segment and country:
| 30 Jun 2022 | ||||||
|---|---|---|---|---|---|---|
| Insignia | Portugal | Spain | United Kingdom | Other countries | Total | |
| MC | 486,369,406 | 19,440,000 | ٠ | 505,809,406 | ||
| Worten | 78,185,304 | ٠ | ٠ | 78,185,304 | ||
| Sierra | 18,159,949 | $\sim$ | ٠ | 18,159,949 | ||
| Zeitreel | 53,097,133 | $\sim$ | $\sim$ | 53,097,133 | ||
| Bright Pixel | 1,317,676 | $\sim$ | ۰ | 1,317,676 | ||
| Others | $\sim$ | $\sim$ | 61,744,508 | ۰ | 61,744,508 | |
| 637,129,468 | 19,440,000 | 61,744,508 | - | 718,313,976 |
| 31 Dec 2021 | |||||
|---|---|---|---|---|---|
| Insignia | Portugal | Spain | United Kingdom | Other countries | Total |
| MC | 486,369,406 | 19,440,000 | $\overline{\phantom{a}}$ | 505,809,406 | |
| Worten | 78,185,304 | $\sim$ | ٠ | 78,185,304 | |
| Sierra | 18,159,949 | $\sim$ | $\sim$ | 18,159,949 | |
| Zeitreel | 53,097,133 | $\sim$ | ٠ | 53,097,133 | |
| Bright Pixel | 2,059,740 | 1.641.824 | 10,971,314 | 14,672,878 | |
| Others | $\sim$ | $\sim$ | 62,370,674 | $\sim$ | 62,370,674 |
| 637,871,532 | 21,081,824 | 62,370,674 | 10,971,314 | 732,295,344 |
The value of investments in joint ventures and associates can be analyzed as follows:
| Investments in joint ventures and associates | 30 Jun 2022 | 31 Dec 2021 |
|---|---|---|
| Investments in joint ventures | 773.393.356 | 744.565.681 |
| Investments in associates | 790.623.218 | 770.084.405 |
| Total | 1.564.016.574 | 1,514,650,086 |
The detail per company of investments in joint ventures is as follows:
| COMPANY | 30 Jun 2022 | 31 Dec 2021 |
|---|---|---|
| MC | ||
| Maremor Beauty & Fragances, S.L. | 157.825 | 170.499 |
| Sohi Meat Solutions - Distribuição de Carnes, SA | 2,278,548 | 3,639,130 |
| 2,436,373 | 3,809,630 | |
| Sierra | ||
| Arrábidashopping- Centro Comercial, S.A. | 27.612.690 | 27,555,861 |
| Gaiashopping I- Centro Comercial, S.A. | 28,496,933 | 28,854,515 |
| L.C. Malheiro II, SGPS, SA | 3.498.568 | 2,097,775 |
| Madeirashopping- Centro Comercial, S.A. | 19,637,428 | 19,170,362 |
| Nova Centralidade Soc. de Desenv. Imobiliário, SA 1) |
8,147,533 | |
| Pantheon Plaza B.V. | 2.358.725 | 2,845,449 |
| Parque Atlântico Shopping - Centro Comercial, S.A. | 18,450,221 | 17,843,797 |
| Proyecto Cúcuta S.A.S. | 2.410.107 | 2,430,667 |
| SC Aegean B.V. | 3,456,825 | 3,433,293 |
| Via Catarina- Centro Comercial, S.A. | 10.756.988 | 9,704,074 |
| Others | 350.161 | 3,319,702 |
| 125,176,179 | 117,255,495 | |
| Bright Pixel | ||
| Unipress - Centro Gráfico, Lda | 511.095 | 492.267 |
| 511.095 | 492,267 | |
| NOS | ||
| ZOPT, SGPS, SA (consolidated) | 645,269,709 | 623,008,290 |
| 645,269,709 | 623,008,290 | |
| Investments in joint ventures | 773,393,356 | 744,565,681 |
Company acquired in February 2022 $1)$
The value on the income statement related to ZOPT results from net income of NOS, the net income of ZOPT and the impact on results of the process of allocating the fair value to the assets and liabilities acquired by ZOPT.
On 30 June 2022, it was considered that the assumptions made in the impairment tests carried out in 2021 did not have significant variations.
With regard to ZOPT's financial participations in Finstar and ZAP Media (Finstar consolidated), the Board of Directors of NOS and ZOPT is certain that the patrimony seizure to Mrs. Isabel dos Santos, in the specific case of the shares held by her in Finstar and ZAP Media (where she holds 70% of the capital), does not change the control profile, in this case joint control as defined in IFRS 11.
In January 2022, the Public Prosecutor's Office (MP) with the National Asset Recovery Service of the OPG, representing the Angolan State, requested, at the Luanda District Court, i) the replacement of the current trustees of the companies Finstar and ZAP Media (current Boards of Directors of the companies) by the Ministry of Telecommunications, Information Technologies and Social Communication (MTTICS), as well as, ii) the inhibition of voting rights by Isabel dos Santos, requests that the Court granted. Still waiting for further developments on this decision, namely that it does not allow for further appeal, to assess its impact on the management of the business. The Board of Directors of NOS is currently convinced - based on the statements that have been made by the new trustee, MTTICS - that the activity of the companies will continue to develop normally.
On 4 April 2020, Sonaecom was informed by its subsidiary ZOPT of the communication it received from the Central Criminal Investigation Court of Lisbon ('Court') to proceed with the preventive seizure of 26.075% of NOS share capital, corresponding to half of the shareholding in NOS held by ZOPT and, indirectly, by the companies Unitel International Holdings, BV and Kento Holding Limited, controlled by
Mrs. Isabel dos Santos. Under the terms of that communication, the foreclosed shares (134,322,268.5 shares) would be deprived of the exercise of voting rights and the right to receive dividends, the latter of which should be deposited with Caixa Geral de Depósitos, S.A. at the order of the Court. The other half of ZOPT's participation in NOS share capital, corresponding to an identical percentage of 26.075% - and which, at least in line with the criterion used by the Court, embodies the 50% held in ZOPT by Sonaecom - was not subject to seizure, nor the rights inherent to it have been subject to any limitation.
It is the understanding of the board of directors of ZOPT and SONAECOM that the measure of arrest imposed is illegitimate and offends several fundamental rights of ZOPT - third party in relation to the decreed arrest - not being legally liable to determine the deprivation of voting rights, not even to inhibit the holder of the arrested shares from continuing to exercise those rights, which deprivation we understand for this reason, be null and without any effect. Thereafter, ZOPT has deducted third-party embargoes.
On 12 June 2020, ZOPT was notified of the order issued by the Lisbon Central Criminal Investigation Court, which authorizes it to exercise the voting right corresponding to the 26.075% of NOS share capital preemptively held to the order of that Court. This notification reinforces the understanding of the Boards of Directors of ZOPT and Sonaecom, according to which the conditions of control of ZOPT over NOS are fulfilled, and that that measure will have no material effect on the control of this company.
Still in June 2020, the Investigating Judge rejected the third-party embargoes deducted by ZOPT on the grounds of incompetence of the Portuguese courts to assess and decide, a decision that, having been appealed by ZOPT, was revoked by the Court of Justice, already in 2021. In a decision dated 25.11.2021, the investigating judge dismissed the objections and maintained the preventive seizure. ZOPT appealed against this decision to the Lisbon Court of Appeal. On June 2022, ZOPT was notified of the decision that dismissed the appeal, which was the subject of a nullity claim. Further developments are awaited.
On 19 August 2020, Sonaecom communicated the intention of the shareholders of ZOPT (Sonaecom, Unitel International Holdings, BV and Kento Holding Limited) to liquidate the company, maintaining Sonaecom as the reference shareholder of NOS. To date, the efforts to dissolve the ZOPT have not yet been carried out.
During 2020 and 2021, ZOPT was notified of a number of court decisions concerning the ZOPT shares held by KENTO and Unitel International Holdings and the respective right to receive dividends, specifically the following: (i) preventive preservation in case no. 210/20.4TELSB, of the Central Criminal Court, Single Section, concerning 32.65% of ZOPTs share capital held by Unitel International Holdings and 124,234,675 ZOPT shares held by KENTO, with the deprivation of the exercise of voting rights and the right to receive dividends; (ii) seizure decreed in process no. 14012/20.4T8PRT, by Judge 6 of the Central Civil Court of Póvoa de Varzim, over the shares of ZOPT held by Unitel International Holdings, with all the respective rights of patrimonial nature, including the right to receive dividends; (iii) pledge decreed in process no. 7418/21.3T8LSB, by Judge 2 of the Lisbon Execution Court, of 124,234,675 ZOPT shares held by Kento and of the dividends of those shares; (iv) preservation decreed in process no. 17561/21.3T8LSB-A, by Judge 12 of the Lisbon Central Civil Court, over the ZOPT shares held by KENTO and Unitel International Holdings and over the dividends that have not yet been distributed or that may be deliberated. In relation to the pledge, identified in (iii), ZOPT was also notified by Caixa Geral de Depósitos (CGD), as the beneficiary of the pledge of the shares held by Kento in ZOPT, stating that it was vested with the power to exercise the voting rights attached to the Shares, and all other inherent rights,
and that Kento was deprived of exercising such rights without the prior express written consent of CGD. It is the understanding of the ZOPT Board of Directors that, whenever the economic value of the shares is not at stake, CGD, as a pledging creditor of Kento, should act in accordance with Kento's instructions when exercising its voting rights, which means voting in the direction defined by Kento.
Despite the facts described above considering that, there has been no change in the Board of Directors of ZOPT and that decisions on the operating activity of the investee company continue to be taken in accordance with what was being done, we concluded that the profile of joint control over the ZOPT has not changed.
The evolution in provisions occurred during the first 6 months of 2022 compared to 31 December 2021 was as follows:
Legal actions with regulators and Competition Authority ("Autoridade da Concorrência" - AdC)
NOS SA, NOS Açores and NOS Madeira brought actions for judicial review of ANACOM's decisions in respect of the payment of the Annual Fee of Activity (for 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021) as Electronic Communications Services Networks Supplier, and furthermore the refund of the amounts that meanwhile were paid within the scope of the mentioned acts of settlement was requested. Also NOS Wholesale brought action for judicial review of ANACOM's decision in respect of payment of the Annual Fee of Activity for 2020 and 2021.
The settlement amounts are, respectively, as follows:
$\bullet$ NOS SA: 2009: 1,861 thousand euro, 2010: 3,808 thousand euro, 2011: 6,049 thousand euro, 2012: 6,283 thousand euro, 2013: 7,270 thousand euro, 2014: 7,426 thousand euro, 2015: 7,253 thousand euro, 2016: 8,242 thousand euro, 2017: 9,099 thousand euro, 2018: 10,303 thousand euro, 2019: 10,169 thousand euro; 2020: 10,184 thousand euro and 2021: 9,653 thousand euro.
NOS Açores: 2009: 29 thousand euro, 2010: 60 thousand euro, 2011: 95 thousand euro, 2012: 95 $\bullet$ thousand euro, 2013: 104 thousand euro, 2014: 107 thousand euro, 2015: 98 thousand euro, 2016: 105 thousand euro, 2017: 104 thousand euro, 2018: 111 thousand euro, 2019: 107 thousand euro, 2020: 120 thousand euro and 2021: 123 thousand euro.
NOS Madeira: 2009: 40 thousand euro, 2010: 83 thousand euro, 2011: 130 thousand euro, 2012: 132 thousand euro, 2013: 149 thousand euro, 2014:165 thousand euro, 2015: 161 thousand euro, 2016: 177 thousand euro, 2017: 187 thousand euro, 2018: 205 thousand euro, 2019: 195 thousand euro, 2020: 202 thousand euro and 2021: 223 thousand euro.
NOS Wholesale: 2020: 36 thousand euro and 2021: 110 thousand euro.
During the course of the 2003 to 2022 financial years, some companies of the NOS Group were the subject of tax inspections for the 2001 to 2020 financial years. Following these inspections, NOS SGPS, as the controlling company of the Tax Group, and companies not covered by Tax Group, were notified of the corrections made to the Group's tax losses, to VAT and stamp tax and to make the payments related to the corrections made to the above exercises. The total amount of the notifications unpaid is about 37 million euro, added interest, and charges. These settlement notes, which totally were contested, are the respective lawsuits in progress.
After the judgment was carried out, in May 2022, the court partially accepted NOS, condemning MEO to pay 7.9 million euros, a decision that has not yet become final. It is understanding of the Board of Directors of NOS and ZOPT, corroborated by attorneys accompanying the process, that it is, in formal and substantive terms, likely that NOS SA will be able to win the lawsuit, due to MEO already having been convicted for the same offences by ANACOM.
In March 2018, NOS was notified of a lawsuit brought by DECO against NOS, MEO and NOWO, in which a declaration of nullity of the obligation to pay the price increases imposed on customers at the end of 2016 is requested.
After the discussion and judgment sessions were held in June 2022, the conclusion of the process is now pending the parties' allegations, which were scheduled for September 2022. The Board of Directors of NOS and ZOPT are convinced that the arguments used by the author are not justified, which is why it is believed that the outcome of the proceeding should not result in significant impacts for the Group's financial statements.
At 30 June 2022, accounts receivable and accounts payable include 37,139,253 euros and 43,475,093 euros, respectively, resulting from a dispute between the subsidiary NOS SA and, essentially, the operator MEO - Serviços de Comunicação e Multimédia, S.A. (previously named TMN - Telecomunicações Móveis Nacionais, S.A.), in relation to the non-definition of interconnection tariffs of 2001. In what concerns to that dispute with MEO, the result was totally favourable to NOS S.A., having already become final.
The detail of Investments in Associates is as follows:
| COMPANY | 30 Jun 2022 | 31 Dec 2021 |
|---|---|---|
| MC | ||
| Sempre a Postos - Produtos Alimentares e Utilidades, Lda | 1,143,433 | 910,322 |
| 1,143,433 | 910,322 | |
| Sierra | ||
| 3shoppings - Holding, SGPS, S.A. | 13,441,121 | 12,911,514 |
| Aliansce Sonae Shopping Centers, S.A. | 95,104,582 | 82,144,399 |
| Area Sur Shopping, S.L. | 8.347.223 | 7,609,420 |
| Douro Riverside Hotel, S.A. 1). |
1,814,218 | |
| Fundo Investimento Imobiliário Parque Dom Pedro Shopping Center ("FIIPDPSH") | 11,986,931 | 10,045,075 |
| Fundo Investimento Imobiliário Shop. Parque Dom Pedro ("FIISHPDP") | 114,287,458 | 96,256,931 |
| Iberia Shop.C. Venture Coöperatief U.A. ("Iberia Coop") | 15,018,065 | 14,409,364 |
| Le Terrazze - Shopping Centre 1 Srl | 6.621.767 | 6,444,258 |
| Mercado Urbano - Gestão Imobiliária, S.A. | 1,256,561 | 1,225,393 |
| Olimpo Real Estate SOCIMI, S.A. | 7.604.414 | 7.808.294 |
| Olimpo Real Estate Portugal, SIGI, S.A. | 2.731.100 | 2,747,985 |
| Serra Shopping- Centro Comercial, S.A. | 1,147,412 | 1,063,010 |
| Sierra European Retail Real Estate Assets Holdings, BV ("Sierra BV") | 242.995.027 | 229,957,073 |
| Sierra Portugal Feeder 1 | 2,237,344 | 2,167,043 |
| Sierra Portugal Real Estate ("SPF") | 20,093,771 | 20,949,774 |
| Signal Alpha Republica I, S.A. | 267,485 | 325,425 |
| Signal Alpha Republica II, Lda. | 45,849 | 61,658 |
| Trivium Real Estate Socimi, S.A. | 25,235,876 | 25,935,782 |
| Zenata Commercial Project | 2,148,400 | 2,117,099 |
| 572,384,604 | 524,179,497 | |
| Bright Pixel | ||
| Fundo de Capital de Risco Armilar Venture Partners II (Armilar II) | 72.986.165 | 76.854.019 |
| Fundo de Capital de Risco Armilar Venture Partners III (Armilar III) | 19.128.604 | 51,583,976 |
| Fundo de Capital de Risco Espirito Santo Ventures Inovação e Internacionalização (AVP I+I) | 15,432,239 | 15,362,845 |
| Others | 252.104 | 181.945 |
| 107,799,112 | 143,982,786 | |
| Sonae SGPS | ||
| Iberian Sports Retail Group (ISRG) | 109,296,070 | 101,011,800 |
| 109,296,070 | 101,011,800 | |
| Investment in associates companies | 790.623.218 | 770,084,405 |
1) Company was acquired in February 2022
In the period ended on 30 June 2022, the change in the value of the proportion of equity in Armilar III Fund is essentially related to the distribution of capital made following the sale of a stake held by that fund.
During the period ended at 30 June 2022, movements in investments in joint ventures and associates are as follows:
| 30 Jun 2022 | ||||
|---|---|---|---|---|
| Investments in joint ventures | Proportion on equity | Goodwill | Total investment |
|
| Balance as at 1 January | 654,215,783 | 90,349,898 | 744,565,681 | |
| Transfer to subsidiaries | (2.573,908) | (2,573,908) | ||
| Increases during the period | 514,683 | 514,683 | ||
| Acquisitions during the period | 8,874,228 | 8,874,228 | ||
| Effect in gains or losses in joint controlled | 25,671,921 | 25,671,921 | ||
| Distributed dividends | (7,540,830) | (7,540,830) | ||
| Effect in equity capital and non-controlling interests | 3,881,581 | $\overline{\phantom{a}}$ | 3,881,581 | |
| 683,043,458 | 90,349,898 | 773,393,356 |
| Investments in associates companies | 30 Jun 2022 | ||||
|---|---|---|---|---|---|
| Proportion on equity | Goodwill | Total investment |
|||
| Initial balance as at 1 January | 689,792,740 | 80,291,665 | 770,084,405 | ||
| Increases during the period | 2,255,710 | 2,255,710 | |||
| Acquisitions during the period | 1,714,741 | 1,714,741 | |||
| Capital reduction in associated companies | (34,549,365) | (34, 549, 365) | |||
| Effect in gains or losses in associated companies | 26,643,911 | 26,643,911 | |||
| Transfer to available for sale | (39,967) | (39, 967) | |||
| Distributed dividends | (8,045,860) | (8,045,860) | |||
| Effect in equity capital and non-controlling interests | 32,559,643 | 32,559,643 | |||
| 710,331,554 | 80,291,665 | 790,623,218 |
The effect on equity and non-controlled interests results fundamentally from the exchange rate conversion effect of companies with a different functional currency than the euro.
The value of financial assets at fair value through profit and loss can be analysed as follows:
| Statment of financial position | ||||
|---|---|---|---|---|
| Company | Head Office | 30 Jun 2022 | 31 Dec 2021 | |
| MC | ||||
| Insco - Insular de Hipermerc., SA | Ponta Delgada | 4,748,744 | 4,748,744 | |
| Sportessence - Sport Retail, SA | Ponta Delgada | 595,964 | 595,964 | |
| 5,344,708 | 5,344,708 | |||
| Bright Pixel | ||||
| Arctic Wolf Networks, Inc | Delaware | 80,873,346 | 74,168,202 | |
| Aryaka | Colorado | 1,369,362 | 1,369,362 | |
| 1) CellWize | Singapore | 8,641,595 | ||
| ciValue | Yokneam | 1,977,741 | ||
| Citcon | San Jose | 4,842,995 | 4,414,600 | |
| Daisy Intelligence | Canadá | 1,235,326 | 1,153,213 | |
| Experify | Delaware | 1,251,563 | ||
| Habit Analytics | Évora | 790,804 | 790,804 | |
| Hackuity | France | 3,000,000 | ||
| Jscrambler | Porto | 3,828,724 | 3,828,724 | |
| Mayan | Delaware, USA | 4,813,698 | ||
| Ometria, Ltd. | London | 21,556,771 | 22,016,495 | |
| Portainer | Nova Zelândia | 1,925,480 | 441,460 | |
| Codacy Group | Lisbon | 8,000,005 | ||
| Reblaze | St. Louis | 2,647,535 | 2,428,030 | |
| Replai | Porto | 1.800.887 | 1,800,887 | |
| Safebreach | Israel | 14,518,911 | 13,315,160 | |
| Sales Layer | Valência | 9,714,017 | 2,500,358 | |
| Sellforte | Finland | 2,500,003 | 2,500,003 | |
| Sixgill Ltd | Israel | 19,032,366 | 5,297,520 | |
| Taikai | Porto | 1,836,895 | 1,836,895 | |
| ViSenze | Singapore | 4,446,706 | 4,078,034 | |
| Weaveworks | San Francisco | 4,813,699 | 4,414,599 | |
| Other financial assets | 2,075,893 | 1,950,894 | ||
| 196,874,987 | 158,924,575 | |||
| Financial assets at fair value through profit or loss | 202,219,695 | 164,269,283 |
1) Company was disposal in the period
The value of financial assets at fair value through other comprehensive income can be analysed as follows:
| Statment of financial position | ||||
|---|---|---|---|---|
| Company | Head Office | 30 Jun 2022 | 31 Dec 2021 | |
| Sonae | ||||
| NOS SGPS, SA | Lisbon | 176,158,499 | 129,580,000 | |
| 176,158,499 | 129,580,000 | |||
| Bright Pixel | ||||
| Deepfence | Califórnia | 2,406,850 | 2,207,300 | |
| Iriu sRisk | Saragoça | 1,416,514 | 1,416,514 | |
| Nextail Labs, SL | Madrid | 1,628,759 | 1,628,759 | |
| StyleSage, Inc. | Delaware | 2,037,760 | 1,868,807 | |
| Other financial assets | 617,677 | 877,473 | ||
| 8,107,560 | 7,998,854 | |||
| Financial assets at fair value through other comprehensive income | 184,266,060 | 137,578,854 |
During the year ended at 30 June 2022 and 31 December 2021, movements in investments in joint ventures are as follows:
| 30 Jun 2022 | 30 Jun 2021 | |
|---|---|---|
| Investments recorded at fair value through other comprehensive income and through profit or loss | ||
| Fair value (net of impairment losses) as at 1 January | 301.848.137 | 213,572,561 |
| Acquisitions in the period | 55.579.763 | 4,404,509 |
| Disposals in the period | (10, 794, 631) | (23, 425, 424) |
| Increase/(decrease) in fair value through profit and loss | 23.555.679 | 507.065 |
| Increase/(decrease) in fair value through other comprehensive income | 16,296,806 | 208.200 |
| 386,485,755 | 195.266.911 |
In the period ended 30 June 2022, the caption 'Decreases during the period' includes the sale of Bright Pixel's entire share position in CiValue for the amount of 5.3 million euro, which generated a capital gain of 3.3 million of euro, the disposal of Cellwize for 22.7 million euros, which generated a capital gain of 13.9 million euro and the disposal of Beamy which generated a capital gain of 667 thousand euros.
Deferred tax assets and liabilities as at 30 June 2022 and 31 December 2021 may be described as follows considering the different natures of temporary differences:
| Deferred tax assets | Deferred tax liabilities | |||
|---|---|---|---|---|
| 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |
| Difference between fair value and acquisition cost | 4,494,615 | 4,494,615 | 91,128,618 | 86,686,900 |
| Temporary differences on property, plant and equipment and intangible assets | 427,778 | 498,601 | 88,966,377 | 87,102,196 |
| Temporary difference of negative goodwill and equity method | ٠ | 41,437,479 | 44,707,041 | |
| Provisions and impairment losses not accepted for tax purposes | 16,499,184 | 16,928,014 | ||
| Impairment of assets | 639,053 | 639,053 | ||
| Valuation of hedging derivatives | 803,795 | 740,886 | 6,330,164 | 5,508,153 |
| Amortisation of Goodwill for tax purposes in Spain | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 42,461,662 | 39,553,323 |
| Tax losses carried forward | 39,908,871 | 23,526,318 | ||
| Reinvested capital gains/losses | 102,608 | 113,833 | ||
| Tax Benefits | 38,140,890 | 39,762,334 | ||
| Rights of use | 260,834,798 | 263,770,237 | 225,782,471 | 230,277,839 |
| Others | 5,467,621 | 8,859,249 | 2,532,614 | 698,298 |
| 366,577,552 | 358,580,253 | 499,381,046 | 495,286,636 |
As at 30 June 2022 and 31 December 2021, the tax rate to be used in Portuguese companies, for the calculation of the deferred tax assets relating to tax losses is 21%. The tax rate to be used to calculate deferred taxes in temporary differences in Portuguese companies is 22.5% increased by the state surcharge in companies in which the expected reversal of those deferred taxes will occur when those rates will be applicable. For companies or branches located in other countries, rates applicable in each jurisdiction were used.
The detail of the other investments as of 30 June 2022 and 31 December 2021 is as follows:
| 30 Jun 2022 | 31 Dec 2021 | |||
|---|---|---|---|---|
| Non current | Current | Non current | Current | |
| Other investments: | ||||
| Fair value (net of impairment losses) as at 1 January | 14,984,400 | ۰ | 14,266,208 | |
| Acquisitions in the period | 2,307,696 | ۰ | 2,346,863 | |
| Disposals in the period | (688, 914) | ٠ | (950, 516) | |
| Transfers to available for sale | (191, 309) | (128, 614) | ||
| Discontinued operations | (549, 541) | |||
| Fair value (net of impairment losses) as at 30 June | 16,411,873 | - | 14,984,400 | |
| Derivative financial instruments | ||||
| Fair value as at 1 January | $\overline{\phantom{a}}$ | 7,106,548 | ۰ | 3,303,370 |
| Increase/(decrease) in fair value | (5,046,160) | 3,803,178 | ||
| Fair value as at 30 June | 2,060,388 | 7,106,548 | ||
| Financial instruments others | ||||
| Fair value as at 1 January | $\overline{\phantom{a}}$ | 483 | - | 483 |
| Fair value as at 30 June | ۰ | 483 | 483 | |
| 16,411,873 | 2,060,870 | 14,984,400 | 7,107,031 |
As at 30 June 2022 and 31 December 2021, Cash and cash equivalents are as follows:
| 30 Jun 2022 | 31 Dec 2021 | |
|---|---|---|
| Cash and bank balances on the statement of financial position | 424.365.589 | 825.063.052 |
| Bank overdrafts (Note 16) | (1.617.744) | (2.373.001) |
| Cash and bank balances in the statement of cash flows | 422,747,844 | 822,690,051 |
As at 30 June 2022 the caption "Non-current assets held for sale" is detailed as follows:
21,107,879 euros resulting from the reclassification of the financial investment in MDS SGPS, SA, based on the agreement for the disposal of 50% to Ardonagh Services Limited, an entity wholly owned by The Ardonagh Group Limited;
726,029 euros relating to a Zeitreel property located in Spain.
52,684,748 euros resulting from the reclassification of the assets of Maxive and its subsidiaries in accordance with IFRS 5, pursuant to the agreement entered into with Thales Europe, S.A. for the sale of the entire share capital and voting rights of Maxive - Cybersecurity, SGPS, S.A., announced on May 17 (Note 3).
The value of the item "Liabilities directly associated with assets classified as held for sale" as at 30 June 2022 refers exclusively to the reclassification of the liabilities of Maxive and its subsidiaries mentioned above.
During the period ended 30 June 2022, the movement in non-controlling interests are detailed as follows:
| 30 June 2022 | |||||||
|---|---|---|---|---|---|---|---|
| MC | Worten | Sierra | Zeitreel | Bright Pixel | Others | Total | |
| Opening balance as at 1 January 2022 | 265,712,374 | 921,827 | 220,767,055 | (1,816,156) | 118,529,358 | 61,486 | 604,175,944 |
| Delivery and attribution of shares to employees due to the extinction of the obligation |
(241, 943) | (241, 943) | |||||
| Change in percentage of subsidiaries | ×. | (77, 483, 247) | (2,544,737) | (80.027,984) | |||
| Change in currency translation reserve | (768, 151) | (389, 791) | 480 | (13, 709) | (1,171,171) | ||
| Participation in other comprehensive income (net of tax) related to joint ventures and associated companies included in consolidation by the equity method |
$\sim$ | 3,270,279 | $\sim$ | 375,575 | $\sim$ | 3,645,854 | |
| Capital decrease | (6,586,800) | $\sim$ | (6,586,800) | ||||
| Changes in hedging reserves | 1,623,359 | 132,173 | 179,461 | 1,934,993 | |||
| Dividends distributed | (60, 795, 866) | (4, 422, 358) | (5,952,228) | (71, 170, 452) | |||
| Others | 180,211 | (0) | 200,000 | 16,160 | (169, 734) | 226,637 | |
| Profit for the period attributable to non controlling intere | 15,525,920 | (148, 584) | 6,563,917 | 87,810 | 4,328,670 | (97,930) | 26,259,801 |
| Closing balance as at 30 June 2022 | 221,235,903 | 773,243 | 141,851,227 | (1,528,346) | 114,753,278 | (40, 426) | 477,044,879 |
The item "Change in percentage of subsidiaries" refers to the acquisition of an additional 10% of Sierra share capital for 83.47 million euro, thus the Group now owns 90% of that subsidiary.
As at 30 June 2022 and 31 December 2021, loans are made up as follows:
| 30 Jun 2022 Outstanding amount |
31 Dec 2021 | |||
|---|---|---|---|---|
| Outstanding amount | ||||
| Current | Non Current | Current | Non Current | |
| Bank loans | 292.097.334 | 926.204.285 | 226.101.339 | 780.726.925 |
| Bonds | 28.817.580 | 310.284.621 | 90.254.637 | 315,415,828 |
| Other loans | 298 | (435) | 813.618 | 1,217,654 |
| Total loans | 320,915,212 | 1,236,488,471 | 317,169,593 | 1,097,360,407 |
| 30 Jun 2022 | 31 Dec 2021 | |||
|---|---|---|---|---|
| Outstanding amount | Outstanding amount | |||
| Current | Non Current | Current | Non Current | |
| Bank loans | ||||
| Sonae SGPS, SA - commercial paper | 235,500,000 | 210,000,000 | 147,600,000 | 270,000,000 |
| Sonae SGPS, SA 2016/2023 | 30,000,000 | 30,000,000 | ||
| Sonae SGPS, SA 2020/2025 | 25,000,000 | 25,000,000 | ||
| Sonae SGPS affiliated /2019/2026 | 50,000,000 | 50,000,000 | ||
| MC Retail, SGPS, SA - commercial paper | 285,901,608 | ۰ | 105,950,402 | |
| MC affiliated /2014/2023 | 50,000,000 | 50,000,000 | ||
| MC / 2018/2031 | 6,111,111 | 48,888,889 | ٠ | 55,000,000 |
| MC affiliated /2020/2025 | 55,000,000 | 55,000,000 | ||
| MC affiliated /2021/2028 | 20,000,000 | 20,000,000 | ||
| Sierra SGPS, SA - commercial paper | 25,000,000 | 25,000,000 | ||
| Sierra / 2018/2022 | 10,000,000 | 10,000,000 | ||
| Sierra affiliated - commercial paper | 6,000,000 | |||
| Sierra affiliated /2016/2026 | 36,300,000 | 36,300,000 | ||
| Sierra affiliated /2015/2023 | 5,200,000 | 105,300,000 | 5,200,000 | 107,900,000 |
| Others | 9,065,841 | 4,428,040 | 6,336,240 | 6,396,905 |
| 290,876,952 | 926,818,537 | 224,136,240 | 781,547,307 | |
| Bank overdrafts (Note 13) | 1,617,744 | 2,373,001 | ||
| Up-front fees beard with the issuance of borrowings | (397, 363) | (614, 252) | (407, 902) | (820, 382) |
| Bank loans | 292,097,334 | 926,204,285 | 226,101,339 | 780,726,925 |
| 30 Jun 2022 | 31 Dec 2021 | |||
|---|---|---|---|---|
| Outstanding amount | Outstanding amount | |||
| Current | Non Current | Current | Non Current | |
| Bonds | ||||
| Bonds ESG Sonae SGPS/2020/2025 | 4,000,000 | 12,000,000 | 8,000,000 | 12,000,000 |
| Bonds MC / December 2019/2024 | ٠ | 30,000,000 | 30,000,000 | |
| Bonds MC / April 2020/2027 | 95,000,000 | 95,000,000 | ||
| Bonds MC / July 2020/2025 | 50,000,000 | |||
| Bonds MC / July 2020/2025 | 22,500,000 | |||
| Bonds MC ESG / December 2021/2024 | ۰ | 40,000,000 | 40,000,000 | |
| Bonds MC ESG / December 2021/2026 | 60,000,000 | 60,000,000 | ||
| Bonds Sierra / 2018/2025 | 50,000,000 | 10,000,000 | 30,000,000 | |
| Bonds Sierra / 2018/2023 | 25,000,000 | 25,000,000 | ||
| Bonds Sierra / 2018/2023 | 25,000,000 | 25,000,000 | ||
| Up-front fees beard with the issuance of borrowings | (182, 420) | (1,715,379) | (245, 363) | (1,584,172) |
| Bonds | 28,817,580 | 310,284,621 | 90,254,637 | 315,415,828 |
| Other loans | 298 | 813,618 | 1,218,089 | |
| Derivates | (435) | (435) | ||
| Other loans | 298 | (435) | 813,618 | 1,217,654 |
| Total loans | 320,915,212 | 1,236,488,471 | 317,169,593 | 1,097,360,407 |
It is estimated that the book value of all loans does not differ significantly from its fair value, determined based on discounted cash flows methodology.
The interest rate at 30 June 2022 on bond loans and bank loans averaged approximately 0.9% (1.01% at 31 December 2021). Most of the bond loans and variable-rate bank loans are indexed to Euribor.
The derivatives are recorded at fair value.
The loans face value, maturities and interests are as follows:
| 30 Jun 2022 | 31 Dec 2021 | |
|---|---|---|
| $N+1^{a}$ | 321.494.995 | 317,822,859 |
| $N+2$ | 284,096,805 | 330,746,020 |
| $N+3$ | 140.662.414 | 268,243,617 |
| $N+4$ | 91.408.732 | 125,365,234 |
| $N+5$ | 503,206,349 | 279,887,302 |
| After N+5 | 219.444.238 | 95.523.224 |
| 1,560,313,532 | 1,417,588,256 |
a) Includes amounts used from commercial paper programs when classified as current.
The maturities presented above were estimated according to the contractual clauses of the loans and considering Sonae's best expectation as to its amortization date.
As at 30 June 2022, there are financing operations with financial covenants whose conditions were negotiated in accordance with applicable market practices, and which at the date of this report are in regular compliance.
As at 30 June 2022, Sonae has, as detailed below, cash and bank balance equivalents in the amount of 424 million euros (825 million euros as at 31 December 2021) and available credit lines as follows:
| 30 Jun 2022 | 31 Dec 2021 | |||
|---|---|---|---|---|
| Commitments of less than one year |
Commitments of more than one year |
Commitments of less than one year |
Commitments of more than one year |
|
| Unused credit facilities | ||||
| MC | 60.000.000 | 171,000,000 | 96,000,000 | 190,000,000 |
| Sierra | 54,969,346 | 18.200.000 | 54.969.346 | |
| Holding & Others | 38.150.000 | 248.260.383 | 75.150.000 | 160,240,452 |
| 153,119,346 | 437.460.383 | 226.119.346 | 350.240.452 | |
| Agreed credit facilities | ||||
| MC | 60,000,000 | 451,000,000 | 96,000,000 | 290,000,000 |
| Sierra | 60.969.346 | 18.200.000 | 54.969.346 | |
| Holding & Others | 114.650.000 | 472.150.000 | 171.400.000 | 315,900,000 |
| 235,619,346 | 941,350,000 | 322,369,346 | 605,900,000 |
Movements in "Provisions and impairment losses" during the period ended 30 June 2022 are as follows:
| Caption | Balance as at 01 Jan 2022 |
Increase | Decrease | Discontinued operations |
Changes in the scope of consolidation |
Balance as at 30 Jun 2022 |
|---|---|---|---|---|---|---|
| Accumulated impairment losses on investments | 4.546.271 | (4,256,522) | (11.419) | 1.379.330 | 1.657.660 | |
| Impairment losses on property, plant and equipment (Note 5) | 120.517.257 | 1.856.714 | (6.939.790) | $\sim$ | 115.434.181 | |
| Impairment losses on intangible assets (Note 6) | 34.966.077 | 27,300 | (117, 397) | $\sim$ | 34,875,980 | |
| Accumulated impairment losses on non-current assets | (18.000) | 18,000 | ||||
| Accumulated impairment losses on non-current assets held for sale |
51.375 | $\overline{\phantom{a}}$ | $\sim$ | 51,375 | ||
| Accumulated impairment losses on other current debtors | 27.982.415 | 1.481.569 | (4.087.062) | (292.859) | $\sim$ | 25.084.063 |
| Non - current provisions | 21.476.976 | 2.296.598 | (2.342.207) | (347, 867) | $\sim$ | 21.083.501 |
| Current provisions | 4.170.266 | 1.131.447 | (1.479.276) | 126.183 | 3.948.620 | |
| 213.710.637 | 6.793.628 | (19.240.254) | (652.145) | 1.523.513 | 202.135.380 |
The change in the caption "Impairment losses on tangible fixed assets" results mostly from the sale of properties for which impairment had been recognized. The "Changes in the scope of consolidation" reflects the impact of the liquidation of Losan Tekstil Urun.V E Dis Ticaret, L.S. that occurs in early 2022.
Impairment losses are deducted from the value of the corresponding asset.
The breakdown of other income for the periods ending 30 June 2022 and 2021 is as follows:
| 30 Jun 2022 | 30 Jun 2021 Restated |
|
|---|---|---|
| Supplementary income | 21,703,767 | 21,750,435 |
| Prompt payment discounts obtained | 13.436.757 | 13,458,713 |
| Foreign currency exchange gains | 24.191.506 | 9,101,590 |
| Own work capitalised | 11,858,221 | 8,570,904 |
| Rent discounts relating to pandemic impact | 4,165,565 | |
| Gains on sales of assets | 838.215 | 3,177,205 |
| Insurance claims | 8.025.176 | 1,471,631 |
| Subsidies | 1.287.291 | 931,221 |
| Others | 5.812.902 | 3,442,506 |
| 87.153.835 | 66.069.770 |
As at 30 June 2022 and 2021, net financial expenses are as follows:
| 30 Jun 2022 | 30 Jun 2021 Restated |
|
|---|---|---|
| Expenses | ||
| Interest payable | ||
| related with bank loans and overdrafts | (5,647,029) | (7,083,456) |
| related with non convertible bonds | (2, 294, 839) | (4, 333, 378) |
| related with operational leases | (36, 304, 536) | (37, 363, 603) |
| others | (881, 818) | (1,008,417) |
| (45, 128, 222) | (49, 788, 854) | |
| Foreign exchange losses | (49, 461, 262) | (18, 143, 305) |
| Up front fees and commissions related to loans | (3,062,226) | (2,971,604) |
| Others | (1, 271, 848) | (1,205,248) |
| (98,923,558) | (72, 109, 011) | |
| Income | ||
| Interest receivable | ||
| related with bank deposits | 31,429 | 5,883 |
| others | 2,942,018 | 1,620,327 |
| 2,973,447 | 1,626,210 | |
| Foreign exchange gains | 47,736,083 | 18,082,914 |
| Other financial income | 4,872,573 | 55,493 |
| 55,582,103 | 19,764,617 | |
| Net Financial Expenses | (43, 341, 455) | (52, 344, 394) |
Balances and transactions with related entities can be detailed as follows:
| Parent Company | Jointly controlled companies | Associated companies | Other related parties | |||||
|---|---|---|---|---|---|---|---|---|
| 30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | 30 Jun 2022 | 30 Jun 2021 | |
| Sales & Services rendered | 156.238 | 151.384 | 8.026.550 | 6.432.224 | 28.991.133 | 46.019.141 | 31.378.195 | 26.018.292 |
| Other income | ٠ | 1.070.591 | 1,131,192 | 122.847 | 1.513,871 | 2.784.109 | 2,677,872 | |
| COGS and materials consumed | $\sim$ | 161.542.787 | 141,733,123 | 42 | 1,181,687 | 979,749 | ||
| External supplies and services and other expenses |
240.591 | 126 | 8.862.692 | 8.379.104 | 2.273.597 | 2.287.448 | 4.288.752 | 5,130,481 |
| Financial income | - | $\sim$ | 263.006 | 236.895 | 199.589 | 242.241 | 86.582 | |
| Financial expense | - | $\overline{\phantom{a}}$ | 63.084 | 57.686 | 3.146.197 | 3.248.102 | 642 | 56.357 |
| 396,829 | 151.510 | 179.828.710 | 157.970.224 | 34.733.405 | 53.310.803 | 39.719.967 | 34,862,751 |
| Parent Company | Jointly controlled companies | Associated companies | Other related parties | |||||
|---|---|---|---|---|---|---|---|---|
| 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | 30 Jun 2022 | 31 Dec 2021 | |
| Other non-current assets | $\overline{\phantom{a}}$ | $\sim$ | 9.899.728 | 1.627.900 | 7.618.534 | 9.888.743 | 1.837.545 | 1.178.067 |
| Trade receivables | 31,016 | 30,797 | 1.898.972 | 2.928.730 | 6.252.021 | 6,594,780 | 15.705.714 | 17.263.704 |
| Other assets | 84.842 | 8.270 | 9,120,382 | 6,186,738 | 7.706.724 | 4.551.254 | 2.070.498 | 1,279,971 |
| Trade payables | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 65.029.054 | 69.605.733 | 1.630.745 | 1.793.596 | 2.144.425 | 988,412 |
| Other liabilities | 218,791 | $\overline{\phantom{a}}$ | 1.765.385 | 3.889.536 | 7.167.247 | 2.870.278 | 1,569,895 | 2.197.036 |
| 334,649 | 39.067 | 87,713,521 | 84.238.637 | 30,375,271 | 25,698,651 | 23.328.077 | 22,907,190 |
The related parties include subsidiaries and jointly controlled companies or associated companies of Sonae Sierra SGPS, SA, ZOPT SGPS, SA, Sonae Indústria, SGPS, S.A. and Sonae Capital, SGPS, SA, as well as other shareholders of subsidiaries or jointly controlled companies by Sonae, and other subsidiaries of the parent company Efanor Investimentos, SGPS, S.E..
Earnings per share for the periods ended 30 June 2022 and 2021 were calculated taking into consideration the following amounts:
| 30 Jun 2022 | 30 Jun 2021 Restated Note 3 |
|||
|---|---|---|---|---|
| Continuing Operations |
Descontinuing Operations |
Continuing Operations |
Descontinuing Operations |
|
| Net profit | ||||
| Net profit taken into consideration to calculate basic earnings per share (consolidated profit for the period) | 119.402.031 | (1.346.694) | 63.858.365 | (1,429,306) |
| Net profit taken into consideration to calculate diluted earnings per share | 119,402,031 | (1,346,694) | 63,858,365 | (1,429,306) |
| Number of shares | ||||
| Weighted average number of shares used to calculate basic earnings per share | 1,916,922,421 | 1,916,922,421 | 1.908.434.638 | 1,908,434,638 |
| Effect of dilutive potential ordinary shares from convertible bonds | 128.667.482 | 128.667.482 | ||
| Outstanding shares related with share based payments | 10,608,333 | 10.608.333 | 6,919,305 | 6,919,305 |
| Shares related to performance bonus that can be bought at market price | (3,682,898) | (3,682,898) | (1,514,559) | (1,514,559) |
| Weighted average number of shares used to calculate diluted earnings per share | 1.923.847.856 | 1.923.847.856 | 2.042.506.866 | 2,042,506,866 |
| Earnings per share | ||||
| Basic | 0.062288 | (0.000703) | 0.033461 | (0.000749) |
| Diluted | 0.062064 | (0.000700) | 0.031265 | (0.000700) |
Cash payments related to investments of the period can be detailed as follows:
| Payments | 30 Jun 2022 | 30 Jun 2021 |
|---|---|---|
| Acquisition of SONAE SIERRA SGPS (Nota 4) | 83,470,598 | 82,159,275 |
| Acquisition of Nova Centralidade Soc. de Deseny. Imobiliário, SA | 8,130,600 | |
| Supplementary Payments of Codacy | 8,000,005 | |
| Acquisition of Mayan | 4,752,398 | |
| Acquisition of Sixgill | 4,222,262 | |
| Incorporation and and capital increase of North Tower BV | 3,192,762 | |
| Acquisition of Hackuity | 3,000,000 | |
| Acquisition of Sales Layer | 2,555,120 | |
| Acquisition of Douro Riverside Hotel, S.A. | 1,794,568 | |
| Acquisition of FIIPDP | 1,779,902 | 816,871 |
| Acquisition of Portainer.io | 1.398.993 | 415.144 |
| Acquisition of acções Experif | 1,135,272 | |
| Acquisition of ZAASK | 405,000 | 2,808,247 |
| Acquisition of Sellforte | 2,500,003 | |
| Acquisition of 25% and earnout of Elergone | 1,500,000 | |
| Others | 31,680,454 | 3,281,825 |
| 155,517,933 | 93,481,365 |
In the Management Report, and for the purposes of calculating financial indicators as EBIT, EBITDA and Underlying EBITDA the consolidated income statement is divided between Direct Income and Indirect Income.
The Indirect Income includes the contribution of Sierra, net of taxes that result from: (i) valuation of investment properties; (ii) gains (losses) with the sale of financial investments, joint ventures or associates; (iii) impairment losses relating to non-current assets (including Goodwill) and (iv) provisions for assets at risk. Additionally and with regard to the portfolio of Sonae, it includes: (i) impairment of real estate assets for retail, (ii) decreases in Goodwill, (iii) negative Goodwill (net of taxes) related to acquisitions in the
financial year, (iv) provisions (net of tax) for possible future liabilities, and impairments related to noncore investments, businesses and discontinued assets (or to be discontinued / repositioned), (v) valuation results based on the methodology "mark-to-market" of other current investments that will be sold or traded in the near future and (vi) other irrelevant issues
The value of EBITDA, Underlying EBITDA and EBIT are calculated in the direct income component, i.e. excluding the indirect contributions.
The reconciliation between the two presentation formats for the consolidated income statement for the periods ended 30 June 2022 and 2021 can be summarized as follows:
| 30 Jun 2022 | 30 Jun 2021 Restated Note 3 |
||||||
|---|---|---|---|---|---|---|---|
| Consolidated | Indirect Income | Direct Income | Consolidated | Indirect income | Direct income | ||
| Turnover | 3,447,394,462 | 3,447,394,462 | 3,194,545,614 | 3,194,545,614 | |||
| Value created on investment properties | 2,770,868 | 2,770,868 | (2,133,040) | (2,133,040) | |||
| Investment income | |||||||
| Dividends and others adjustments | 12,288,549 | 11,988,060 | 300,489 | 10,764,000 | 10,564,000 | 200,000 | |
| Others | (236, 166) | (236, 166) | (1,138,728) | (2,157,541) | 1,018,813 | ||
| Others income | |||||||
| Others | 87,153,835 | (688, 660) | 87,842,495 | 66,069,772 | $\overline{\phantom{a}}$ | 66,069,772 | |
| Total income | 3,549,371,548 | 14,070,268 | 3,535,301,280 | 3,268,107,618 | 6,273,419 | 3,261,834,199 | |
| Total expenses | (3, 294, 487, 678) | (528,696) (3,293,958,981) (3,025,817,407) | 69,895 (3,025,887,302) | ||||
| Depreciation and amortisation | (173, 253, 568) | ×. | (173, 253, 568) | (164, 630, 226) | $\overline{a}$ | (164, 630, 226) | |
| Impairments of inventories | $\overline{a}$ | $\sim$ | $\sim$ | (4,500,000) | $\overline{\phantom{a}}$ | (4,500,000) | |
| Gains and Losses on property, plant and equipment and intangible assets |
(920, 183) | (920, 183) | (1,504,547) | (1,504,547) | |||
| Provisions for warranty extensions | (550,013) | (550,013) | (386, 605) | (386, 605) | |||
| Reversals of impairment losses | 3,975,074 | 3,975,074 | 4,062,783 | 4,062,783 | |||
| Reversals of provisions for warranty extensions | 545,504 | 545,504 | 314,850 | 314,850 | |||
| Others | (2,517,012) | (2,517,014) | (16,741,632) | 1,860 | (16, 743, 492) | ||
| Profit/(Loss) before financial results and results of joint ventures and associates and non-recurrent items |
82,163,672 | 13,537,063 | 68,626,608 | 58,904,835 | 6,273,419 | 52,631,416 | |
| Non-recurrent items | 15,996,360 | $\sim$ | 15,996,360 | 10,161,348 | i. | 10,161,348 | |
| Gains and losses on investments recorded at fair value through results |
41,297,761 | 23,555,678 | 17,742,083 | 13,511,813 | 3,377,828 | 10,133,985 | |
| Financial profit/(loss) | (43, 341, 455) | (43,341,455) | (52, 344, 394) | (52, 344, 394) | |||
| Share of results of joint ventures and associated undertakings |
|||||||
| Associates and joint ventures of Sonae Sierra |
27,465,537 | 8,113,108 | 19,352,430 | (1,561,683) | (12, 412, 759) | 10,851,076 | |
| Armilar Venture Funds | (2,354,353) | (2,354,353) | 23,637,514 | 23,637,514 | o | ||
| ZOPT | 18,518,475 | $\sim$ | 18,518,475 | 17,599,433 | ä, | 17,599,433 | |
| Others | 8,678,917 | $\overline{a}$ | 8,678,917 | 3,944,358 | $\overline{a}$ | 3,944,358 | |
| Profit/(Loss) before income tax | 148,424,914 | 42,851,495 | 105,573,417 | 73,853,223 | 20,876,002 | 52,977,221 | |
| Income Tax | (2,031,705) | (3,599,641) | 1,567,936 | (4,771,357) | (6,002,934) | 1,231,577 | |
| Profit/(Loss) from continued operations | 146,393,209 | 39,251,854 | 107,141,354 | 69,081,866 | 14,873,068 | 54,208,798 | |
| Profit/(Loss) from discontinued operations | (2,078,071) | (2,078,071) | 245,461 | $\overline{\phantom{a}}$ | 245,461 | ||
| Profit/(Loss) for the period | 144,315,138 | 39,251,854 | 105,063,283 | 69,327,327 | 14.873.068 | 54,454,259 | |
| Attributable to equity holders of Sonae | 118,055,337 | 41,013,837 | 77,041,500 | 62,429,059 | 12,027,798 | 50,401,260 | |
| Non-controlling interests | 26,259,801 | (1,761,983) | 28,021,784 | 6,898,268 | 2,845,270 | 4,052,999 | |
| Underlying EBITDA (b) | 258,783,893 | 245,880,883 | |||||
| EBITDA (a) | 319,252,003 | 288,682,558 | |||||
| EBIT(c) | 146,536,314 | 105,367,076 |
(a) EBITDA = total direct income - total direct expenses - reversal of direct impairment losses + share of results in joint ventures and associated undertakings (Sierra direct results, ZOPT and other participated) + provisions for extensions of guarantee + unusual results
There were no relevant events identified that occur between the date of the consolidated financial statements and the date of their approval.
The financial statements were approved by the Board of Directors in a meeting held on 27 July 2022.
The Board of Directors,
Duarte Paulo Teixeira de Azevedo Ângelo Gabriel Ribeirinho dos Santos Paupério José Manuel Neves Adelino Margaret Lorraine Trainer Marcelo Faria de Lima Carlos António Rocha Moreira da Silva Fuencisla Clemares Philippe Cyriel Elodie Haspeslagh Maria Cláudia Teixeira de Azevedo João Pedro Magalhães da Silva Torres Dolores
This document may contain forward-looking information and statements, based on management's current expectations or beliefs. Forward-looking statements are statements that should not be regarded as historical facts.
These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to, changes in regulation, industry and economic conditions; and the effects of competition. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or similar expressions.
Although these statements reflect our current expectations, which we believe are reasonable, investors and analysts, and generally all recipients of this document, are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. You are cautioned not to put undue reliance on any forward-looking information or statements. We do not undertake any obligation to update any forward-looking information or statements.
Ricardo Figueiredo da Rocha Head of Investor Relations [email protected] +351 22 010 4794
Maria João Oliveira External Communication [email protected] +351 22 010 4000
Sonae Lugar do Espido Via Norte 4471-909 Maia, Portugal +351 22 948 7522
Sonae is listed on the Euronext Stock Exchange. Information may also be accessed on Reuters under the symbol SONP.IN and on Bloomberg under the symbol SON PL
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