Earnings Release • May 20, 2021
Earnings Release
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One year ago, I was writing for the first time about how Covid-19 impacted our lives. More than twelve months have now passed since the first signs of this pandemic. The way we work, how we shop, how we travel, how we learn and even how and where we live, will probably never be the same.
In Portugal, the start of 2021 was a dramatic period in terms of public health as we were confronted with a third wave of the pandemic that forced us once again into harsher lockdown measures. We faced a very adverse context, with many of our stores, cinema theatres and shopping centres closed (or practically closed) for 2.5 months. But, once again, the resilience, resourcefulness and digital readiness of our businesses were critical to overcome this context. We were able to continue to serve our customers across multiple channels, with a particular focus on our e-commerce platforms, and showed the resilience of our value chains and the solidity of our value propositions. And our customers recognized our commitment and dynamism.
During the 1Q21, under this challenging environment, our consolidated turnover grew 6% yoy, our online sales increased 2.3x and our underlying EBITDA improved 14% you. This evolution was underpinned by Sonae MC and Worten, which registered impressive performances, both offline and online, enough to offset the lower results of the businesses most affected by the lockdown. We maintained a comfortable capital structure with a low cost of debt, an average maturity of 4 years and no refinancing needs for the next 18 months.
The last few months were also marked by important changes in the portfolio and key milestones in the execution of our corporate strategy, such as the restructuring of our operation in Worten Spain, the increase of our stake in Sonae Sierra, the launch of a partnership between Sonae FS and Banco CTT, and strong valuation increases in Sonae IM's portfolio, namely in its three unicorn investments.
I would like to reiterate my gratitude to all our employees who have continued to show tremendous dedication to serve our customers but also a truly open mindset and enthusiasm to transform operating models and accelerate our path into the future. It is this relentless pursuit of innovation and growth that drives us at Sonae, and that has really set us apart since the outbreak of Covid-19.
I am also grateful to all other stakeholders that have place their trust in us, including our shareholders, to whom we distributed in May 17th a dividend of 4.86 euro cents per share (a total of €97 M), corresponding to a 5.0% dividend increase and a dividend yield of 7.4%*, as approved by the AGM.
We are now ready to move forward and embrace the opportunities of a new normality. The last twelve months have put us to the test as never before, but we continued to lay the foundations for the future. Today we are a leaner, more digital, more resilient and more sustainable company. Many opportunities will arise in the aftermath of the pandemic and I am certain that Sonae will be well positioned to capture them.
Cláudia Azevedo, CEO
* Share price at year-end of 2020.
| Sonae MC | 100% | Full consolidation |
|---|---|---|
| Worten | 100% | Full consolidation |
| Sonae Sierra | 80% | Full consolidation |
| Sonae Fashion | 100% | Full consolidation |
| Sonae FS | 100% | Full consolidation |
| Sonae IM | 90% | Full consolidation |
| NOS | 31% | Equity method |
| ISRG | 30% | Equity method |
| $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf{A}$ , $\mathbf{A} \cup \mathbf$ |
Stake
Consolidation method
Already in the beginning of April, Sonae FS and Banco CTT signed a partnership agreement for the next five years, whereby Sonae FS
will continue to be the single point of contact in the management, support and monitoring of Universo card customers throughout the customer lifecycle and value chain, while CTT will take the associated funding and credit risk.
Sonae's consolidated performance continued to be significantly impacted by the pandemic. It is relevant to recall that, while the last 2 weeks of March 2020 were severely hit by the effects of Covid-19, in the 1Q21 Portugal saw another strong lockdown and stores with non-essential products were forced to close again. Under this context, consolidated turnover increased by 5.8% yoy to £1.6 bn, once again mainly anchored by the positive performances of Sonae MC and Worten, which more than offset the negative yoy performances of Sonae Sierra and Sonae Fashion.
Following the top line trend, underlying EBITDA increased 14.1% to €114 M in the 1Q21, again mainly driven by the growth of both Sonae MC and Worten that more than compensated the impact from restrictions in other businesses.
Regarding EBITDA, it reached €128 M, in line with last year, backed by improved net result of both NOS/Zopt and ISRG when compared to 2020, which offset the capital gain recorded in the 1Q20 related to the Sierra Prime transaction.
In such a challenging environment, the Direct Result stood at -€1.0 M, significantly above last year, when a high level of Covid-19 provisions were registered. Indirect result mainly reflected the revaluation of Sonae IM's portfolio, leading Sonae's Net result (group share) to positive ground at €0.6 M.
| €M | 1Q20 | 1Q21 | yoy |
|---|---|---|---|
| Turnover | 1,552 | 1,641 | 5.8% |
| Underlying EBITDA | 100 | 114 | 14.1% |
| margin | 6.4% | 6.9% | 0.5 p.p. |
| Equity method results (1) | 7 | 14 | 105.6% |
| o.w. Sonae Sierra | 9 | 5 | -48.9% |
| o.w. NOS | $-1$ | 7 | |
| Non-recurrent items | 22 | U | -99.2% |
| EBITDA | 128 | 128 | 0.0% |
| margin | 8.3% | 7.8% | -0.4 p.p. |
| D&A, Prov. and Impairments | $-131$ | $-104$ | 20.6% |
| EBIT | -3 | 24 | |
| Net Financial results | $-29$ | $-28$ | 5.7% |
| Taxes | 7 | 2 | -67.8% |
| Direct result | $-25$ | -1 | 96.2% |
| Indirect result | -20 | 4 | |
| Net result | -45 | 3 | |
| Non-controlling interests | $-13$ | -3 | 79.1% |
| Net result group share | -59 | $\mathbf{1}$ |
(1) Equity method results: includes direct income by equity method results from Sonae express income cosmos includes anexe uncertainty in the Silver Siena statutory accounts, income related to investments consolidated by the equity method (mainly NOS/Zopt and ISRG) and discontinued operations results.
Note: 23% stake in NOS is consolidated by equity method and 7.38% acquired by
Sonae is a financial investment
Portfolio and accounting method
Company
Sonae's total capex in 1Q21 was €126 M, significantly higher when compared to the 1Q20, mainly due to the acquisition of the additional stake in Sierra for €82 M, as operational capex stood at €41 M and below 1Q20, with our businesses continuing to invest in their value propositions as well as their digital paths.
In terms of operational cash flow and during the last 12 months, Sonae's diversified portfolio released €205 M, mainly fuelled by the improvement of its consolidated profitability, optimized measures of working capital and lower operational capex.
Regarding portfolio management, during the last 12 months Sonae reinforced its shareholder positions in NOS (7.38%), Salsa (50%) and more recently Sonae Sierra (10%), for a total M&A investment of €317 M (also including Sonae IM investments). This strong investment in our portfolio was partially offset by (i) €71 M of cash in from asset sales, mainly related with Sonae IM and Sonae MC sale and leaseback transactions, and (ii) by dividends received of €8 M in the period. All in all, Sonae's FCF (before dividends paid), for the last 12 months and on a comparable basis, stood at -€64 M.
After the end of the partnership with BNPP PF, Sonae FS changed the business model of its Universo credit card operation and started building its backbook in December 2020. This backbook reached €122 M at the end of 1Q21, impacting Sonae's overall debt level. Given the partnership agreed with Banco CTT in April, by which the new partner will be responsible for the funding and credit risk activities, this amount is no longer on Sonae's balance sheet.
Therefore, and in comparable terms, Sonae's consolidated net debt reached €1,397 M, a yoy €164 M increase, driven by the several acquisitions executed in the last 12 months - in particular the reinforced stakes in NOS, Sonae Sierra and Salsa. Sonae continues to hold a solid capital structure with a comfortable financing position (low cost of debt of 1.1% and an average maturity profile of 3.7 years).
| €M | 1020 | 1021 | you |
|---|---|---|---|
| Total capex | 60 | 126 | |
| Operational capex | 55 | 41 | $-26.2%$ |
| Sonae MC | 46 | 29 | $-37.1%$ |
| Worten | 4 | 8 | |
| Sonae Fashion | 4 | $\overline{\phantom{0}}$ | $-52.6%$ |
| Sonae IM | 1 | 1 | በ 7% |
| Sonae ES | Π | U | |
| Sonae Sierra | Π | N | |
| Financial/M&A capex | 5 | 85 |
| €M | L12M Dec20 |
L12M Mar 21 |
var. |
|---|---|---|---|
| EBITDA (inc. rents and taxes) | 413 | 423 | 2.5% |
| Working cap. and others* | 25 | 31 | 24.2% |
| Operational capex | -264 | $-250$ | 5.5% |
| Operational cash flow | 174 | 205 | 17.8% |
| Net financial activity | $-32$ | $-30$ | 6.7% |
| M&A capex | $-237$ | $-317$ | $-33.6%$ |
| Sale of assets | 335 | 71 | $-78.9%$ |
| Dividends received | 13 | 8 | -37.9% |
| FCF bef. dividends (comp.) | 252 | -64 |
* Excludes Sonae FS backbook that impacted working capital in the difference between the end of 2020 ( $E3Z$ M) and the end of the quarter ( $E12Z$ M) and the end of the quarter ( $E12Z$ M). This credit portfolio was transfe
| €M | 1020 | YE20 | 1021 |
|---|---|---|---|
| Net invested capital | 4.975 | 4.751 | 5.059 |
| Shareholders funds | 2,550 | 2.440 | 2.357 |
| Lease liabilities | 1.193 | 1,208 | 1,183 |
| Net deht | 1.233 | 1.103 | 1.519 |
| Comparable | 1.233 | 1.071 | 1.397 |
| Sonae FS backbook | Π | 32 | 122 |
As for the leverage profile of our main businesses, Sonae MC reached a 3.0x total net debt to underlying EBITDA ratio (vs. 3.4x in 1Q20), NOS a ratio of Net financial debt to EBITDA (after leasings) of 1.5x, and Sonae Sierra's loan-to-value stood at 25%. Finally, loan-to value at the holding level reached 14%†.
† Holding Net debt excludes Sonae FS backbook
Sonae's fully consolidated portfolio faced once again a challenging quarter and delivered a very solid performance, mainly driven by Sonae MC and Worten, the two businesses which kept the majority of their stores open during the lockdown period.
| Turnover | Und. EBITDA margin | ||||
|---|---|---|---|---|---|
| €M | 1020 | 1021 | UOU | 1020 | 1021 |
| Sonae MC | 1,194 | 1,273 | 6.6% | 8.1% | 8.6% |
| Worten | 232 | 272 | 17.4% | 3.5% | 6.4% |
| Sonae Sierra | 27 | 22 | $-17.8%$ | 17.0% | 13.7% |
| Sonae Fashion | 78 | 61 | $-21.7%$ | 1.2% | |
| Sonae FS | 9 | 4 | $-52.3%$ | 22.4% | |
| Sonae IM | 26 | 24 | $-8.5%$ | $-5.7%$ | 0.4% |
| Total | 1,552 | 1,641 | 5.8% | 6.4% | 6.9% |
With the worsening of the pandemic situation in Portugal, the start of the year was marked by a new lockdown period that was in place during 2.5 months of the quarter.
This new lockdown benefited Sonae MC's food formats but restricted the performance of the non-food formats as most of them were closed during the period. Nevertheless, customers continued to recognise Sonae MC's strong value propositions, food formats outperformed non-food, online sales more than doubled yoy and the 1Q21 was overall positive in terms of sales growth leading to another quarter of market share gains.
All in all, Sonae MC registered a turnover growth of 6.6% versus 1Q20 and a LfL sales growth of 3.6%, mainly underpinned by the performance of Continente formats which recorded a LfL sales growth of 4%, reaching a total turnover of €1.3 bn in the 1Q21. This figure is especially positive taking into account the negative calendar effect and the difficult comparison with the 1Q20, which registered a sales peak at the end of March as a result of the stock piling with emergency supplies after the first signs of the pandemic.
In terms of store network expansion, Sonae MC maintains its objective of expanding its proximity format, Continente Bom Dia, with investments progressing according
to plan. In the 1Q21, the company opened 2 additional stores of this format out of a total of 9 new stores, representing an additional +4k square meters of sales area. At the end of 1Q21, total capex stood at €29 M, €17 M below when compared to 1020.
<sup>‡ For more information please see Sonae MC 1Q21 results in www.sonae.pt
Regarding profitability, underlying EBITDA increased, driven by a strong top line evolution despite being penalized by costs related to Covid-19. At the end of the 1Q21, underlying EBITDA stood at €110 M with an 8.6% margin, +55 basis points above 1020.
Finally, Sonae MC's net debt at the end of 1Q21 stood at €530 M (€164 M below last year) with a yoy FCF increase of €37 M in the 1Q21, and with a ratio of 3.0x total net debt/underlying EBITDA, representing a solid capital structure.
Despite the pandemic context and the confinement constraints in place, the electronics market grew, both in Portugal and Spain, mainly driven by the online channel.
In this context, and leveraging an efficient and convenient response, Worten's total turnover jumped to €272 M at the end of 1Q21, growing by 17.4% versus 1Q20, on the back of a solid LfL sales growth of +29.3%. The online operation continues to represent a double-digit weight in total turnover, growing 2.5x yoy, with the marketplace being a key contributor. In Portugal, Worten posted a robust LfL sales performance of +28.2% as a result of a solid growth offline and, more importantly, online. This performance clearly shows Worten's strong value proposition as an omnichannel player in the Iberian market, having registered yet another quarter with market share growth in Portugal.
In Spain, a strategic repositioning was rolled out with the aim of focusing on ecommerce in Mainland, while retaining a leading omnichannel presence in the Canary Islands. As such, during the 1Q21, Worten closed 14 stores in the Mainland and sold 17 stores to Media Markt. These stores were open until the end of February and the repositioning was implemented as planned.
end of 1Q21, with a margin improvement from 3.5% to 6.4%, mainly driven by the strong sales growth in Portugal.
Sonae Sierra's 1Q21 results continue to be affected by the Covid-19 pandemic and the consequent lockdowns across the geographies where it operates. As a result, total discounts across its European portfolio totalled 38%, with Portugal being the country most severely hit, as discounts were in the order of 47% of rents. Considering the last 12 months, total discounts in Portugal amount to 64% of rents, which compares to 28% in the remaining European countries.
As is usual practice, Sonae Sierra does not conduct asset revaluations in Q1 and Q3, which tupically provides more stability to Net Result. Therefore, and reflecting exceptional cost reductions, Sonae Sierra's net result stood at € 3M. Furthermore, at the end of 1Q21, Sonae Sierra's NAV, according to the INREV methodology, stood at €897 M which represents a 0.5% reduction compared to YE20, mainly affected by adverse BRL FX impact, which totally offsets the result of the period.
| Proportional basis - management accounts | |||
|---|---|---|---|
| M€ | 1020 | 1021 | you |
| Turnover | 46 | 31 | -32.7% |
| Direct results | 11 | 5 | -58 0% |
| Indirect results | 37 | $-1$ | |
| Net results | 48 | -93 2% |
Underlying EBITDA
As the restrictions on traffic and opening hours are being gradually lifted, Sonae Sierra is placing a significant focus, in close collaboration with its tenants, to ensure that the entire shopping centre ecosystem is well equipped and best placed to rapidly return to normality whilst meeting the highest possible health & safety standards in an omnichannel environment.
Sonae Fashion was once again severely hit by the pandemic context and was one of the portfolio businesses with a more challenging start to the year. Constraints to store operations were felt across most countries (from circulation restrictions to lockdowns), but mostly in Portugal, where a full lockdown started in January 15th, leading Sonae Fashion stores to remain closed for almost 2.5 months. From March 15th onwards restrictions started to be lifted, first with sales at the wicket and later with smaller high street stores allowed to open (most stores were only allowed to operate after mid-April, with very positive post-reopening sales).
Nevertheless, online sales continued to register strong growth by doubling yoy in the quarter, leveraging a larger customer base, enhanced digital tools and processes, and a growing willingness to shop online, which helped to partially offset sales lost due to the closing of stores. Additionally, B2B businesses (wholesale and franchising) showed resilience, leading sales to a strong 1Q21 roughly aligned with 2020. Overall, this demanding context had a major impact on Sonae Fashion's activity in the first quarter of the year. Still, total turnover decreased only to €61 M in 1Q21, a negative 39% LFL against a demanding comparable last year and, according to our estimates, above the market performance.
Regarding profitability, underlying EBITDA decreased you to negative ground in 1Q21, at -€4 M, leveraging additional cost reduction measures that partially mitigated the sales evolution of the quarter.
Sonae FS went through a structural change of the Universo card business model. After several years working with BNPP PF as a partner for credit granting, Sonae FS decided to assume the role of credit grantor for the Universo card. In this new role, Sonae FS signed a 5-year partnership agreement with Banco CTT on the 1st of April. With this partnership, Sonae FS remains as the single point of contact in the management of all customers throughout their life cycles, while Banco CTT will be responsible for financing the credit associated with the Universo Card and for the respective inherent credit risk (through a securitization program in which Banco CTT will be the only subscribing entity).
Due to the business model change, the credit backbook only started being generated in December 2020. Since revenues are indexed to the backbook, Sonae FS' turnover naturally shows a discontinuity that will be mitigated over the coming months with the growth of the credit stock. Nevertheless, it is worth highlighting that Universo's market share in the first quarter was 16.2% (+1.5 p.p. above 4Q20) and its digital strategy led to 470k digital clients at the end of the 1Q21 (+42k vs the end of 2020).
In any case, it should be noted that the company's activity continued to be affected by a reduction in private consumption in a lockdown context, resulting in decreases especially in business lines such as ATM withdrawals, personal loans and store purchases.
$(\text{EM})$ $\overline{2}$ $-4$ 1020 1021
Underlying EBITDA
Overall, in the 1Q21, turnover stood at €4 M, decreasing by €5 M versus 1Q20, and profitability evolved from €2 M in 1Q20 to -€4 M in 1Q21.
Sonae IM continues to be among the businesses least impacted by the pandemic, proving the resilience of the technology companies in the portfolio.
During the first quarter, and with regard to portfolio changes, Sonae IM added a new company to the portfolio, Sellforte (retail technology). Sellforte is based in Finland and has an AI-powered marketing optimization platform that helps CMOs and other C-level decision-makers to make advised decisions based on their own marketing, sales, and promotion data. Besides this new investment, Sonae IM made some follow-on investments in its portfolio companies.
The last months were also marked by important achievements in some minority investments: i) Feedzai, indirectly held by Armilar Funds, announced a series D round with an implicit valuation that turned the company into a unicorn; ii) Outsystems - that reached a unicorn valuation back in 2018 - announced a 150 million USD capital raise, co-led by Abdiel Capital and Tiger Global, at an underlying valuation of 9.5 billion USD, which is a strong sign of the company's recent track record and future prospects; and iii) already in 2Q21, and following a secondary market transaction, Sonae IM sold part of its stake in Arctic Wolf, resulting in a gross capital gain of circa 12.3 million euros and a gross cash-in of 36.4 million euros.
Sonae IM's turnover in the 1Q21 stood at €24 M, a decrease of €2 M when compared to last year, mainly explained by lower transactional activity of third-party products in spite of being partially offset by a strong performance of the cybersecurity area, which continued to record double-digit growth. As for profitability, there were relevant improvements in cybersecurity companies, with underlying EBITDA increasing €1.6 M when compared to the 1Q20.
The equity method results line in Sonae's P&L is mainly related with: (i) the equity method contribution line of Sonae Sierra' statutory accounts, which corresponds to the shopping centres in which the company holds minority stakes, (ii) Sonaecom's indirect 26% stake in NOS, and (iii) ISRG's net result.
| ι€Μ | 1020 | 1021 | you |
|---|---|---|---|
| Sonae Sierra | q | Ц | -48 9% |
| NOS/Zopt | $-1$ | ||
| ISRG | ζ | ᡃ | 76.1% |
During 1Q21, all of these businesses were once again impacted by the pandemic context, although results were overall better than in the 1020.
NOS already published its 1Q21 results on May 11th. During the 1Q21, the telco division proved once again its resilience and delivered a healthy performance, while the media and entertainment division was seriously hit as cinema theatres were closed throughout the period.
In terms of revenues, the core telecom business recorded a solid growth of 0.8% yoy to €336 M but was not able to offset the negative impact in cinemas, as Media and Entertainment (M&E) revenues declined 55.4% yoy. As a result, consolidated turnover decreased by 2.3% yoy to €337 M at the end of the 1Q21.
Regarding profitability, Telco EBITDA increased 1.2% yoy to €143.5 M and consolidated EBITDA stood practically in line with 1Q20 at €152 M. Net income recorded a significant improvement yoy in the 1Q21 to €30.5 M, implying a higher equity method contribution to Sonae's accounts, mostly due to the high level of negative non-recurrent items registered in 1Q20, the majority of which related to the reinforcement of operating provisions related with the pandemic.
Free Cash Flow before dividends reached €21.2 M in 1Q21, 38.8% below 1Q20, mainly reflecting the higher capex and lease payments during the period. NOS once again posted a solid and conservative capital structure, with a Net Financial Debt / Turnover (€M)
EBITDA (after lease payments) of 1.5x, an all-in average cost of debt of 1.6% and an average maturity profile of 2.3 years.
§
Sonae informed on the reorganisation of the Spanish operation of its subsidiary Worten - Equipamentos do Lar, S.A.
Sonae informed on Sonae MC 2020 Trading Statement.
Sonae - SGPS, SA informed about the completion of the transaction by its subsidiary Worten Equipamentos do Lar, S.A. with Media Markt Saturn S.A.U.
Sonae informed about communication received from Grosvenor Investments (Portugal) S.Ar.L.
Completion of the purchase of 10% of the share capital of Sonae Sierra held by Grosvenor Investments (Portugal) S.Ar.L. for the price of €82.16 million, following the exercise by Grosvenor of its put option right, as announced to the market on March 5th. The main impact of this transaction on the Group's consolidated financial statements will be the transfer of Reserves from "Non-Controlling Interests" to "Equity Holders of the Parent Company", since Sonae already holds a controlling shareholding of 70% in Sonae Sierra.
Sonae informed on partnership between Sonae Financial Services and Banco CTT and informed on Annual Report 2020.
Sonae informed on resolutions taken at Sonae's AGM and about dividend payment. Sonae also informed about Sonae MC Annual Report 2020.
Following a secondary market transaction, Sonae IM sold part of its stake in Arctic Wolf, resulting in a gross capital gain of circa 12.3 million euros and a gross cash-in of 36.4 million euros.
| M€ | 1Q20 | 2020 | 1Q21 |
|---|---|---|---|
| TOTAL ASSETS | 7,924 | 8,149 | 8,107 |
| Non current assets | 6,254 | 6,328 | 6,252 |
| Net fixed assets | 2,088 | 2,108 | 2,088 |
| Net Rights of Use | 1,055 | 1,054 | 1,026 |
| Goodwill | 680 | 671 | 663 |
| Investment properties | 348 | 319 | 319 |
| Other investments | 1,692 | 1,776 | 1,755 |
| Deferred tax assets | 337 | 358 | 353 |
| Others | 53 | 41 | 47 |
| Current assets | 1,670 | 1,821 | 1,855 |
| Stocks | 623 | 636 | 617 |
| Trade debtors* | 119 | 148 | 253 |
| Liquidity | 625 | 767 | 711 |
| Others | 302 | 271 | 274 |
| SHAREHOLDERS' FUNDS | 2,550 | 2,440 | 2,357 |
| Equity holders | 2,035 | 1,993 | 1,992 |
| Attributable to minority interests | 515 | 447 | 365 |
| LIABILITIES | 5,374 | 5,709 | 5,751 |
| Non-current liabilities | 3,420 | 3,404 | 3,587 |
| Bank loans | 1,170 | 1,007 | 1,253 |
| Lease liabilities | 1,083 | 1,100 | 1,079 |
| Other loans | 562 | 690 | 679 |
| Deferred tax liabilities | 469 | 479 | 471 |
| Provisions | 41 | 47 | 19 |
| Others | 95 | 81 | 86 |
| Current liabilities | 1,954 | 2,305 | 2,163 |
| Bank loans | 149 | 177 | 303 |
| Lease liabilities | 109 | 107 | 105 |
| Other loans | 4 | 16 | 12 |
| Trade creditors | 1,084 | 1,339 | 1,139 |
| Others | 607 | 666 | 604 |
| SHAREHOLDERS' FUNDS + LIABILITIES | 7,924 | 8,149 | 8,107 |
| €M | 1Q20 | 1Q21 | yoy |
|---|---|---|---|
| Turnover | 27 | 22 | $-17.8%$ |
| Underlying EBITDA | 5 | 3 | $-33.7%$ |
| margin | 17.0% | 13.7% | $-3.3$ p.p. |
| Equity method results | 9 | 5 | $-48.9%$ |
| Non-recurrent items | 59 | 0 | |
| EBIT | 72 | 7 | $-90.4%$ |
| Net Financial results | -3 | $-2$ | 35.8% |
| Taxes | Ŋ | O | 75.9% |
| Direct result | 69 | 5 | |
| Indirect result | $-20$ | $-1$ | |
| Net result | 49 | 4 | |
| Non-controlling interests | $-1$ | Π | |
| Net result group share | 48 | 3 |
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.
Sonae adopted the IFRS16 accounting standard in 2019.
| 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 S. 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 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 (v) other non-relevant issues. |
| Investment properties | Shopping centres in operation owned and co-owned by Sonae Sierra. |
| Lease Liabilities | Net present value of payments to use the asset. |
| Like for Like sales (LfL) | Sales made by 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) - Holding |
Holding net debt (average) / NAV of the investment portfolio plus Holding net debt (average). |
| Loan to Value (LTV) - Sonae Sierra |
Net debt / (Investment properties + properties under development), on a proportional basis. |
| INREV NAV S. Sierra | Open market value attributable to Sonae Sierra - net debt - minorities + deferred tax liabilities. |
| Net asset value (NAV) of the investment portfolio |
Market multiple approach to each one of Sonae's businesses - average net debt - minorities (book value) |
| Net debt | Bonds + bank loans + other loans + financial leases + 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. |
| Online sales | Total e-commerce sales, including online marketplaces. |
| 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, leasing 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 |
| Underlying EBITDA | Recurrent EBITDA from the businesses consolidated using the full consolidation method. |
| Underlying EBITDA margin |
Underlying EBITDA / turnover. |
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" o
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 contr 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 s any obligation to update any forward-looking information or statements.
Patrícia Vieira Pinto Head of Investor Relations [email protected] Tel: + 351 220 104 794
Tiago Soares External Communication [email protected] Tel.: + 351 220 104 747
Sonae Lugar do Espido Via Norte 4471-909 Maia, Portugal Tel: +351229 487 522
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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