Agenda. Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

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2 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

3 Disclaimer Pro-forma 2005 takes into account: - spin-off of Sonae Indústria - sale of Brazilian retail operations - change of consolidation method of Sonae Sierra to proportionate - sale of the shareholding in Imocapital/Gescartão 3

4 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

5 Consolidated Indicators Turnover Operational Cash-Flow (EBITDA) Net Profit 4,384 4, Total Assets 6,321 6,307 Net Debt 2,063 1,620 Pro-Forma 2005 Values in M. 5

6 Highlights 1 st Quarter Sonae SGPS Announcement, together with Sonaecom, of the Public Tender Offer for Portugal Telecom and PT Multimédia Retail Opening of 7 stores (1 food store), representing 4,000 m 2 Shopping Centres Opening of Rio Sul (Seixal) Telecommunications Announcement of the Public Tender Offer for Portugal Telecom and PT Multimédia Sonae Capital Sale of 3.92% shareholding in ba Vidro Launch of new construction sites in Tróia Tróiaresort: UNOP* 1 permission for development of building plot 1 * UNOP Operational Management Unit 6

7 Highlights 2 nd Quarter Sonae SGPS Acquisition of % of Modelo Continente s share capital Retail Opening of 28 stores (2 food stores), representing 8,000 m 2 Shopping Centres 40 year concession to develop Star Dome in Athens Acquisition of a site in Weiterstadt (Frankfurt) for the development of a Shopping and Leisure Centre Telecommunications Acquisition of 1% of PT s share capital Launch of Kanguru Xpress, 20Mb broadband offer and triple play offer Sale of Enabler Sonae Capital Tróiaresort: UNOP 3 detailed plan conclusion and approval of Troia Golf Course renewal project 7

8 Highlights 3 rd Quarter Sonae SGPS Acquisition of 9.09% of Modelo Continente s share capital Retail Opening of 12 stores (2 food stores), representing 6,000 m 2 Strengthening of innovation in promotional activities: 75% discount campaign Launch of two new non food retail formats Worten Mobile and Área Saúde (Chemists) Modelo Continente ceased to be a Publicly Listed Company Shopping Centres Agreement for the acquisition of Münster Arkaden (Münster) Telecommunications Launch of Kanguru Fixo Sonae Capital Tróiaresort: UNOP 5 detailed plan conclusion and permission for the development of building plot 2 in UNOP 1 and beach apartments 8

9 Highlights 4 th Quarter Sonae SGPS Acquisition of total control over Modelo Continente Execution of the call option for 1.559% of Sonaecom s share capital held by Parpública Retail Opening of 40 stores (6 food stores), representing 27,000 m 2 Shopping Centres Sale of 50% of Sonae Sierra Brazil Opening of the third phase of Shopping Campo Limpo (São Paulo) Write off of the 3DO project (Dortmund) 9

10 Highlights 4 th Quarter Telecommunications Roll-up of 093X and Parpúplica s shareholdings in Optimus Sonae Capital Sale of a project for the development of an Hospital in Oporto Sale of the shareholding in Autocenter Eólicas de Portugal, of which TP is a member, won the public tender for the production of 1,200 MW of wind power Tróiaresort: final detailed plans for UNOPS 7 and 8 and final environmental impact study for UNOP 4 (Ecoresort) Tróiaresort: UNOP 1 approval of building plots 3 and 4 10

11 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

12 Business Portfolio SONAE SGPS 100% 50% 52% 100% Modelo Continente Sonae Sierra Sonaecom Sonae Capital Food Retail Non Food retail Shopping Centres Telecommunications Services 12

13 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

14 Modelo Continente 1 Turnover Operational Cash-Flow (EBITDA) Net Profit 3, , Net Debt Investment acquisition of own shares Acquisition of Real Estate Investment Funds Values in M. 1 values from the sub holding perspective 14

15 Sonae Sierra 1 Operational Cash-Flow (EBITDA) Net Profit NAV 1,490 Value of Investment Properties 2 2,745 1,265 2,498 2 attributable to Sonae Sierra Values in M. 1 values from the sub holding perspective 15

16 Sonaecom 1 Turnover Operational Cash-Flow (EBITDA) Net Profit 26 Operating Capex Net profit excluding tender offer costs (Enabler) 2005 (excluding Enabler) Values in M. 1 values from the sub holding perspective 16

17 Sonae Capital 1 Turnover Operational Cash-Flow (EBITDA) Net profit Net Debt Values in M. 1 values from the sub holding perspective 17

18 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

19 Profit and Loss Account % Turnover 4, , Value Created on Investment Properties Other Operational Income Operational Costs (4,324.6) (4,062.4) Operational Cash-Flow (EBITDA) Operational Profit (EBIT) Net Financial Expenses (99.5) (84.7) Share of Results of Associated Undertakings 10.4 (1.7) - Investment Income Profit before Taxation Taxation Profit for the Period Attributable to Equity Holders of Sonae Attributable to Minority Interests Values in M. 19

20 Turnover , Consolidated Turnover 3, ,384 M. Growth + 6.5% Retail Shopping Centres Telecom. Sonae Capital & Holding Eliminations Consolidated Values in M. 20

21 EBITDA Consolidated EBITDA 599 M. 254 Growth + 8.3% Retail Shopping Centres Telecom. Sonae Capital & Holding Eliminations Consolidated Values in M. 21

22 Net Profit Consolidated Net Profit 339 M. 162 Growth % Retail Shopping Centres Telecom. Sonae Capital & Holding Consolidated Values in M. 22

23 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

24 Balance Sheet Investment Properties 1.520, ,4 Tangible and Intangible Assets 2.396, ,6 Goodwill 250,8 245,6 Other Non-Current Assets 411,5 301,9 Stocks 481,2 460,5 Trade Debtors and Other Current Assets 565,3 788,7 Investments 33,3 10,7 Cash and Cash Equivalents 662,5 912,3 Total Assets 6.320, ,7 Equity Attributable to Equity Holders of Sonae 1.292, ,7 Equity Attributable to Minority Interests 402,1 394,7 Non-Current borrowings 2.142, ,6 Other Non-Current Liabilities 440,8 879,1 Current borrowings 615,9 694,5 Trade Creditors and Other Current Liabilities 1.426, ,1 Total Liabilities 4.626, ,3 Total Equity and Liabilities 6.320, ,7 Values in M. 24

25 Total Assets 6,321 6,307 Sonae Capital & Holding Sonae Capital & Holding Telecom. 16% 13% 41% Retail 19% 18% Telecom. 40% Retail 25% Shopping Centres 28% Shopping Centres Values in M. Pro-Forma

26 Gross Investment Telecom. Shopping Centres Sonae Capital & Holding 17% 25% 7% 38% 14% % Retail 2006 Telecom. Sonae Capital & Holding 31% 17% Retail Shopping Centres Values in M. Pro-Forma

27 Net Debt Retail Shopping Centres Telecom ,063 M. Sonae Capital & Holding Eliminations ,620 M. Consolidated 1,620 2,063 Values in M. 27

28 Financial Structure 5.8 x 5.1 x 5.0 x Interest cover 5.9 x 6.1 x Interest cover raised to 6.1 x 4.0 x 3.4 x 3.1 x 3.2 x 2.8 x 3.1 x 2.9 x Net Debt / EBITDA The ratio of consolidated net debt to consolidated operational cash flow (EBITDA) raised to 3.4 x 28

29 Share Performance The Sonae SGPS s share price rose 28% during The average daily transaction volume was 7,902,693 shares. euro 1.60 Transaction volume Sonae SGPS's share price million shares Jan Dec

30 Agenda Consolidated Indicators 2006 Business Portfolio Business Analysis Results Financial Structure Outlook for 2007

31 Retail Outlook Progress on the implementation of the expansion programme in Portugal (a 10% increase over present sales area) Opening of 10 food stores Opening of nearly 90 non-food stores, equal to more than 35,000 m 2 Maintaining a modern store portfolio, through the refurbishment of more than 50 stores (10% of the total number of stores) Progress on studies for new retail formats and the possibility of entering into new geographies Launch of loyalty card in food retail chains and consolidation of loyalty programmes begun in 2006 in non-food retail chains 31

32 Shopping Centres Outlook Opening of 6 shopping centres (2 in Portugal, 2 in Spain, 1 in Italy and 1 in Germany) Refurbishment of shopping centres in the next few years, such as Centro Colombo, Gran Casa (Zaragoza) and the second phase of Valecenter (Venice) Exploring opportunities in new markets in Central Europe Reach a number of 7 to 8 shopping centres under management in Italy by the end of 2008, 4 in Germany in the same period and 3 in Greece by 2009 Beginning of the construction of a new shopping centre in Manaus (Brazil) Double Sonae Sierra Brazil s net assets over the next 3 years 32

33 Telecommunications Outlook Accelerate growth rate of subscribers base and service revenues Evaluate every opportunity of non organic growth Strengthen technological leadership in broadband services Successfully re-launch the Público newspaper 33

34 Sonae Capital Outlook Progress on the development of the Tróiaresort (conclusion of the first phase expected for the Summer of 2008) Growth in services business area Strengthen the leadership of the insurance brokerage business Increase investment in new business opportunities 34

35 Dividend Distribution Proposal Amount to distribute: circa 56 M. Dividend per share of 3 cents (+ 20% compared to 2005) Amount to distribute (million euro) Dividend per share (cents)

36 This presentation is available on the official Sonae SGPS website at :

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