00:03Hello everyone. My name is João Dolores, Group CFO at Sonae, and it's a pleasure to be here with you today to talk to you a little bit about the group, explain who we are, what we do, and also talk about our more recent performance over the last few months and years. So starting with who we are, we are a purpose-driven group, a group which is listed, obviously, but majority-owned by a family. And this is very important for us, combining the long-term view of a controlling shareholder that has a very long-term perspective on value creation, but also the challenge of capital markets. It's very important for us to be in the market, to speak to investors, speak to analysts, and be challenged on a day-to-day basis to make sure that we can create value in the long run for all our stakeholders. As I said, we are a long-living group with a very strong purpose and a very strong set of values which drive our behaviors and which ensure that we have a strong sense of belonging at the group. Whoever joins Sonae in one of our particular business units, they know that they are joining a wider group of businesses that is run by a very strong set of values and a very clear purpose that drives us into the future.

01:23We are. We have a diverse board of directors composed of members from our controlling shareholder, but also independent board members with a strong reputation that also challenge us and support us in a number of different areas. And we have different types of expertise within the board, from digital to investment management to specific sector expertise, which really helps us have good discussions and really make the right decisions to generate value for our shareholders. How do we operate? What do we do? So we are an investment company, which means that we are an active portfolio manager, active in several ways. So we are active in the sense that we rotate our portfolio on a regular basis, making sure that we are the best owners for each specific part of the portfolio. And we do it in a very thorough way. So we analyze our portfolio every year. We look at all the different components of the group, seeing where we can add more value and where we should consider other shareholding options.

02:29But we are also active in the sense that we like to challenge our businesses. We are not purely financial investors. We like to work with management teams. We like to drive value by interacting with them, by challenging them, by seizing opportunities that lie ahead, and also by establishing linkages and collaboration between the companies in the portfolio. We have several examples of synergies that we drive between the businesses to make sure that together, we are more than just the sum of the parts. And these synergies might include, obviously, back-end synergies such as cost optimization and sourcing and procurement synergies, but also front-end synergies and collaboration initiatives such as devising value propositions, bringing different businesses together to better serve our customers.

03:16Just a brief historical background on where we came from and who we are today. So if you look at our portfolio today, we are quite a diversified portfolio of businesses, again, having strong synergies between themselves. We started out back in the 1950s as a wood panel production company, and we were a wood panel production company, a single-industry business, until the 1980s. And then we started diversifying with the consumerization of the Portuguese economy. So we are a Portuguese-based company, and we grew out of Portugal into a much more international exposure, which I'm going to cover in a while. But in terms of sector span, as you see, in 2000 we were already quite diversified. So we went first into retail, then real estate, commercial real estate and shopping centers. Telecommunications, tourism, etc., and then we further diversified our portfolio. Divesting from some business units, some business areas, and really focusing more on B2C sectors such as retail, shopping centers, telecommunications. And today we are a group which is composed of businesses that have leading positions in very strong and mature industries, but also a number of growth areas benefiting from tailwinds that we feel can project the group better going into the future.

04:33So this is the portfolio today. We like to say that we aim to have leading positions in all the sectors in which we operate. And currently it is exactly like that in most of the industries where we act. We are mostly composed of retail businesses, as you can see. And I will cover each one of them in a while. We also have a very strong foothold in telecoms, commercial real estate. And then we have a new arm, which we call tech and innovation, comprised of two companies which are quite interesting and have been creating value for us in recent months.

05:07So I'll start with retail very briefly. We own the largest food retailer in Portugal, Continente within MC, and also within that subholding, we own the largest health, wellness and beauty retailer in Iberia. So starting with Continente, the grocery retailer in Portugal, we currently are market leaders and expanding our market leadership quarter after quarter in the Portuguese market. And this is a market which is quite competitive, with players from different countries and different value propositions. But we have been able to sustain our leadership position and actually increase it over the last few months and years, increasing our market share, increasing our NPS, our customer satisfaction, and actually increasing our profit margins as well in a very challenging sector. So this is by far the largest business in the portfolio, a business which basically entails a footprint of stores. So proximity stores up to larger supermarkets and hypermarkets, and also the largest online presence in the country. And we have been based on loyalty data, customer data. We have been able to command the best value proposition to Portuguese consumers in this market. Loyalty is very important for us. Again, we have the largest loyalty program in the country by far. And this has been instrumental in making sure that we target promotions, we target offers for our customers, and that we use that data in the best way possible to ensure the best value proposition in the market.

06:35And in terms of health, wellness and beauty, we had an initial business in Portugal in para-pharmacy and beauty. We then expanded into Spain through a couple of acquisitions. So first Arenal in the north of Spain. And then we merged that business with Druni, thereby forming the largest health, wellness and beauty player in Iberia in a partnership with the founding family of Druni. It's currently a very interesting business, growing significantly ahead of the food retail business and also with higher margins. So it's accretive in terms of margins together. MC is a leading business in these two sectors and in these geographies, and we are very happy with the recent performance that we've seen there.

07:16At Worten, we have the largest consumer electronics player in Portugal and actually the largest digital marketplace in the country, by far the most digital company in the portfolio, growing really well, also ahead of its market, growing market share online and offline, and offering a wide array of services as well, which are instrumental to keep our customers loyal to our concepts and to our value proposition in Musti. This is one of our most recent investments. Musti, as many of you may know, is the largest pet care retailer in the Nordics. So starting in Finland, then expanding into Sweden and then Norway. We have a leading position in all three geographies, and we've since made a first acquisition in the Baltics, expanding our presence outside of the Nordics as well. Really happy with this acquisition. It's a listed company. We own roughly 80% of it in partnership with management, and we have been growing the business quite nicely. The performance in the last few quarters has been quite strong, and we see this as a platform to continue to grow to other geographies, given the interesting tailwinds that we see in the sector. And then we have Universo, our consumer credit business in partnership with Bankinter. And it's quite a successful venture as well. We started it a few years ago, and today it's already one of the largest credit cards in Portugal.

08:40Moving on to telco, we own NOS, which is the number two telco operator in the country. But fast-growing and narrowing the gap to number one, an all-encompassing convergent. . Telco operator, which is expanding its presence also to IT services, to the B2B segment, and growing that part of the business as well, quite nicely. In Sierra, we have our real estate arm composed of dominant assets in commercial real estate, but also in other types of real estate around the world and doing really well in terms of occupancy of assets, traffic, tenant sales, etc. So really happy with this business and with lots of synergies with our retail businesses. And then finally, in tech and innovation, we own Sparkfood and Bright Pixel, two venture arms investing in innovation around food and also technology related to our core businesses.

09:33So ultimately, a portfolio which is quite connected and with leading positions in each of the sectors in which we operate, our strategic targets are all around creating long-term economic and social value. This is what our mission is all about. And in terms of creating economic value, we obviously want to make sure that we continue to grow ahead of our markets in all the different businesses, that we maximize net asset value. This is critical for us, and it's the key metric that we follow in terms of value creation and that we keep within leverage boundaries, which we feel are prudent and conservative. And so as we are very long-term oriented, we want to make sure that we have a balance sheet which is strong, which enables us to sustain moments of crisis, but also enables us to ensure means to invest in our future. And finally, in terms of social value, we have a number of metrics that we follow in terms of environmental sustainability, social sustainability, and this is very core to us, and we adhere to the highest standards in the industries in which we operate. And we have very ambitious targets in each of these elements of value creation.

10:42A recent overview of our track record of growth and profitability. We have been growing very well in the last few years, and particularly in the last couple of years through organic growth and also acquisitions. And I will talk about our more recent performance in a bit. But you can see the long-term record is this one. This year, we're already in the last 12 months above €11 billion in sales and roughly around €1.2 billion in EBITDA. Our operating profitability has also been going in the right direction and actually growing ahead of our turnover growth. In terms of capital markets and in terms of our shareholder remuneration, we have what I would call an attractive dividend policy with a very steady evolution over time. And so our dividend per share has been increasing 5% year on year for the last few years, with a very interesting dividend yield across this set of years. And this is a very consistent part of our capital markets policy, making sure that we have a stable and foreseeable dividend policy.

11:47Our recent share performance has been, I would say, quite outstanding. And so since the beginning of the year, as you can see, our share price has appreciated quite significantly versus all the different indexes that you might follow and the different industries where we operate. And this is due to a number of things. Obviously, one, performance: our businesses have been performing really well. Without very strong performances, this is not possible, obviously. This is not possible, obviously. But also we've been changing the way in which we address capital markets, adjusting our equity story, making sure that we reach out to a wider investment base. And that has been critical and instrumental also to make sure that our performance has been this impressive. I would say still, there's a long way to go and we still have a gap versus our NAV. We used to trade at a very significant discount to our NAV. Now we've been narrowing that gap, which is today roughly around 45%. But we still have a long way to go, and we are very confident that we will continue on this upward trend, narrowing the gap between our share price and our NAV.

12:55Let me talk to you a little bit about our recent performance. Just to show you a little bit how we're doing in the different areas and in the recent months. So turnover, as I said, we have been doing well historically in the last ten years, but also in the last few quarters. As you can see here, we have grown in the first nine months of '25, 17% versus last year. This is composed of a mix of organic growth, but also M&A. If you take only the comparable portfolio from one period to the other, we're still growing double digit. So 10%, which I would say is quite strong. And we are very happy with this performance across all of our main businesses. In terms of operating profitability, the news are also good. And so in terms of underlying EBITDA, the growth is quite sound, 29%, with an 80-basis-point expansion in margin to 9.6% overall. And. But even if you take out M&A. This includes M&A. It's roughly around 20%. So we are very happy with the performance of operating profitability, which has to do with operating leverage. Obviously, with the growth that we have, which dilutes our fixed costs, but also with an obsession that we have to be very efficient in terms of managing our cost base.

14:12Total EBITDA, which includes non-recurring impacts and also the contribution from equity method-consolidated businesses, also grew quite expressively, 22% to €861 million in the first nine months of the year. So overall net result has also seen a very positive evolution. If you take the period until September this year, we grew 38% to €200 million and we are on track to finish the year on a very positive note. And I would say it's going to be a record year in a number of indicators across the group.

14:50If you look at our balance sheet, our leverage has been decreasing over the last few months. And so we went from a period in which we divested from a number of businesses, 5 or 6 years ago when we came on as a management team, we decided to divest a number of non-core businesses. And then in the last 18 months, we've really been redeploying capital into growth areas such as pet care, such as health and wellness and beauty, and other areas where we feel that the growth potential is much bigger for the group going forward. And so that brought our loan to value close to our cap of 15%, as you can see on the right-hand side over there. But in the last few months, given the cash generation profile of our businesses, we have been already decreasing that loan to value and that overall leverage. And we're already at 13.6%. And this deleveraging path will continue in the next few months as we do not foresee any major acquisitions down the road. We are really more focused on integrating the recent acquisitions that we did and making sure that we generate the value that we saw going into them. Our average cost of debt has also been decreasing. And so both the deleveraging and also the reduction in the average cost of debt means that we have lower financial costs today than we had a year ago.

16:06And so overall, if you look at our NAV and you can see here the evolution in the last quarter. So in the last quarter alone, we increased our NAV by roughly 6% to 5 billion. If you take an annual perspective, we grew 9% versus last year. And our goal is actually to accelerate that trend and accelerate that pace of growth. So our expectation is that our NAV will continue to grow at an accelerated pace. Our goal is to have it at least at a double-digit rate in the next few years. And that's very important for us because that means that we are creating economic value, which then enables us to create value in other dimensions. And we need to continue to convey the right message to capital markets and explain our equity story and our track record of value creation. Also, to bridge the gap between our share price and our NAV, as we have been seeing over the last few months.

17:01So overall, we are quite happy with the performance. We are also very confident in what lies ahead, and we also hope that this little presentation was helpful for you to get a better feeling of who we are and what we stand for, and we are more than available to schedule follow-up conversations and meetings with you in the next few weeks and months to tell you a little bit more about Sonae, a little bit more about our businesses, and hopefully convince you that we are a company worthwhile supporting in the years to come. Thank you very much.