SSB_Institutional Presentation_Nov 2013

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Company Presentation November 2013

Disclaimer

► The material that follows is a presentation of general background information about Sonae Sierra Brasil S.A. and

its subsidiaries (the “Company”) as of the date of the presentation. It is information in summary form and does

not purport to be complete. It is not intended to be relied upon as advice to potential investors and does not form

the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed

to any other person. No representation or warranty, express or implied, is made concerning, and no reliance

should be placed on, the accuracy, fairness or completeness of the information presented herein.

► This presentation may contain statements that are forward-looking within the meaning of Section 27A of the U.S.

Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the U.S. Securities Exchange Act of

1934. Such forward-looking statements are only predictions and are not guarantees of future performance.

Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to

many risks, uncertainties and factors relating to the operations and business environments of the Company and its

subsidiaries that may cause the actual results of the Company to be materially different from any future results

expressed or implied in such forward-looking statements. No person has any responsibility to update any such

information.

► This presentation does not constitute an offer, or invitation, or solicitation or an offer, to subscribe for or purchase

any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or

commitment.

2

3

Parque D. Pedro Shopping

Shopping Metrópole Manauara Shopping

Uberlândia Shopping

Index

4

4 Company Fundamentals

11 Our Portfolio

14 Growth Strategy

7 Market and Sector Fundamentals

17 Operational and Financial Indicators

• Leverage on the expertise, tenant relationships and market

recognition of our majority shareholders: Sonae Sierra SGPS and

DDR Corp (NYSE: DDR)

• Best-in-class controlling shareholders with significant experience

in the sector

• 33.4% free float

• Defined growth strategy: focus on underserved markets’ middle

class

• Secured growth: 3 recently opened greenfield projects and 3

expansions concluded almost doubling our owned GLA

• 3 other expansions already defined

• 10 shopping centers owned and managed (450k sqm total GLA)

• Occupancy rate of 97.2%(1)

• Best-in-class margins (Adj. EBITDA = 73.7% and Adj. FFO =

55.4%)

• Greenfield Expertise (84% of GLA)

• 2 third-party managed malls

5

Operating Expertise

Strong Shareholders Base

Secured Growth

• Parque D. Pedro Shopping is our main

asset, with 121 thousand sqm of GLA

(Gross Leaseble Area) is one of the

largest shopping malls in Brazil and

Latin America

• The mall is located in the city of

Campinas, in the São Paulo State, 100

km from the city of São Paulo

• Sonae Sierra Brasil holds a 51%

ownership interest in this mall

Sonae Sierra Brasil at a glance

One of the leading developers, owners and operators of top quality and regionally dominant

shopping centers in Brazil

(1) Excluding Uberlândia, Boulevard Londrina and Passeio das Águas shopping centers

Ownership Structure

6

Sonae Sierra Brasil benefits from best-in-class corporate governance and globally recognized

sector expertise, arising from a solid and engaged controlling shareholders

Free Float Sierra Brazil 1

B.V.

66.65% 33.35%

50.0%

• Over 45 years of history

• One of the largest developers and operators of shopping centers in US

• 12 million of sqm in total GLA

• NYSE listed and Sox Compliant

• Market value of US$6.3 billion (1)

50.0%

• Over 21 years of history

• One of the largest developers and operators of shopping centers in Europe

• Over 2 million of sqm in total GLA

• NAV: €1.1 billion (1)

• The largest business group of Portugal, with operations in over 40 countries

• Operations in retail, properties, shopping centers and telecommunications

• Market value: €2.2 billion(1)

• British company with over 300 years of history in the properties market

• Over 1,000 properties under management with a total value of £10.9 billion

• Properties in retail, commercial and residential segments

Sonae Sierra Brasil S.A.

50.0% 50.0%

Note: (1) As of November, 2013 Source: Reuters

Index

7


11 Our Portfolio


14 Growth Strategy


Fast growing middle class

8

Over 40 million people have moved upwards into the middle class, while middle class disposable income has tripled

Increasing middle class Middle class: disposable income(1) (R$/month)

Consumer credit still underpenetrated in Brazil

Source: Cetelem “O Observador 2012”

51%

24%

34%

54%

22% 15%

2005 2011

Population: 182 mm Population: 191 mm

+16 mm people

+40 mm people

A+B

C

D+E

Up

per c

lass

Mid

dle

cla

ss

Lo

wer c

lass

- 48 mm people

R$ 30 billion increase in monthly disposable income

Note: (1) Income available for spending and savings Source: Cetelem “O Observador 2012”, Euromonitor and Raymond James

Sonae Sierra Brasil is strategically positioned to capture the middle class consumption growth, as it entails over 80% of its

target audience

122

363

2005 2011

25%26%

16%15%

11%

6%

4%

28%

26%

16%

14%

10% 10%

4%

Chile USA Spain Germany Argentina Brazil Mexico

2006 2011

31.735.9

41.645.5

50.058.0

64.674.0

91.0

108.0

121.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 2002-2012: 14.3%

Source: ABRASCE; SSB

5.5 5.66.2 6.3

7.58.3 8.6

9.19.5

10.3

11.2

0 .0

2 .0

4 .0

6 .0

8 .0

1 0 .0

1 2 .0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 2002-2012: 7.4%


303 317 326 335351 363 376

392408

430457

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

3 0 0

3 5 0

4 0 0

4 5 0

5 0 0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 2002-2012: 4.2%


-

500

1,000

1,500

2,000

2,500

USA

Canada

Euro

pe

Chile

Mexic

o

Colo

mbia

Peru

Bra

zil

DF

SP

PR

AM

GO

MG

GLA/1,000 inhabitants (2011)

Brazilian shopping center industry fundamentals

9

The Brazilian mall industry had a significant growth in recent years but it is still significantly

underpenetrated when compared to other countries

Number of shopping centers in Brazil GLA (million sqm)

Low shopping center market penetration

Source: ABRASCE, IBGE, BTG, SSB.

Brazil Average: 58

Shopping Center Sales (R$ billion)

Brazilian shopping center industry fundamentals (cont’d)

According to Abrasce, 79 greenfield projects were announced for 2013 and 2014 in Brazil, which,

if concluded, should add more than 2.4 million sqm of GLA

Source: Abrasce 10

North • Malls: 8 • GLA: 274k sqm

Mid-West • Malls: 4 • GLA: 166k sqm

Northeast • Malls: 14 • GLA: 398k sqm

Southeast • Malls: 44 • GLA: 1,340k sqm

South • Malls: 9 • GLA: 247k sqm

Brazil • Malls: 79 • GLA: 2,425k sqm

Index

11


11 Our Portfolio


14 Growth Strategy


Portfolio

12

Our portfolio is composed of 10 operating shopping malls, totaling 2,150 stores, 450 thousand sqm of total GLA and 354

thousand sqm of owned GLA. We recently opened Passeio das Águas Shopping, our 10th mall, which added 78 thousand

sqm of owned GLA to the portfolio. The Company also manages 2 third party malls totaling 341 stores and 52 thousand

sqm of GLA.

3

1

5

6 2 4

8

10

9

7

1. Parque D. Pedro Shopping

• Campinas (SP)

• GLA tsd sqm: 121.3

• Stores: 400

2. Boavista Shopping

• São Paulo (SP)


• Stores: 146

3. Franca Shopping

• Franca (SP)


• Stores: 106

5. Shopping Plaza Sul

• São Paulo (SP)


• Stores: 221

6. Shopping Campo Limpo

• São Paulo (SP)


• Stores: 148

4. Shopping Metrópole

• São Bernardo do Campo (SP)


• Stores: 192

7. Manauara Shopping

• Manaus (AM)


• Stores: 231

9. Boulevard Londrina Shopping

• Londrina (PR)


• Stores: 224

10. Passeio das Águas Shopping

• Goiânia (GO)


• Stores: 267

8. Uberlândia Shopping

• Uberlândia (MG)


• Stores: 215

12. Tivoli Shopping

• Sta. Bárbara d’Oeste (SP)


• Stores: 146

11

Malls in operation

Third party managed malls

11. Shopping Penha

• São Paulo (SP)


• Stores: 195

12

Controlling interests in most of shopping centers

13

Sonae Sierra Brasil’s average ownership stake is 78.6% in its 10 operating properties.

Note: (1) Sonae Sierra and DDR hold an additional 25.9% indirect ownership in Parque D. Pedro through another structure.

Rationale

Ability to expand and adapt to market trends

Controls the management

services of 100% of owned malls

Strategic control of the malls

Shopping Center City State GLA

(‘000 sqm) % SSB Management

Parque D. Pedro(1) Campinas SP 121.3 51.0%

Metrópole São Bernardo SP 30.0 100.0%

Boavista São Paulo SP 15.9 100.0%

Franca Franca SP 18.6 76.9%

Plaza Sul São Paulo SP 23.4 60.0%

Campo Limpo São Paulo SP 22.3 20.0%

Manauara Manaus AM 46.5 100.0%

Uberlândia Uberlândia MG 45.8 100.0%

Londrina Londrina PR 48.4 88.6%

Passeio das Águas Goiânia GO 78.1 100.0%

Average 78.6%

Third party malls under management

Penha São Paulo SP 29.7

Tivoli Santa Bárbara

d’Oeste SP 22.1

Index

14


11 Our Portfolio

14 Growth Strategy



Growth Vectors

Sonae Sierra Brasil’s growth will be driven by the following vectors, with the focus on the

return to the shareholders, by a disciplined investment strategy:

Return to the shareholder

Greenfields:

• Uberlândia (delivered)

•Boulevard Londrina (delivered)

• Passeio das Águas

• Projects yet to be announced

Expansion of existing malls:

• Metrópole

• Parque D. Pedro

• Franca

• Expansions yet to be announced

M&A opportunities:

• Actively searching for new acquisition opportunities of shopping centers that add value to the portfolio

15

16 Data on 10/30/13

Opening of Passeio das Águas Shopping

Passeio das Águas Shopping

Location Goiânia (GO)

Opening 10/30/2013

GLA ('000 sqm) 78.1

SSB's stake 100%

Number of stores 267

Occupancy 83%

Gross investment R$ 466.6 million

Parking Spaces 4,000

On October 30th, 2013 Sonae Sierra Brasil

announced the opening of Passeio das

Águas Shopping, the largest mall in Brazil’s

Mid-West region.

Aerial View External and Internal Pictures

Index

17


11 Our Portfolio

14 Growth Strategy



Shopping Center Sales

18

733 868 971

2,114 2,498

2,727

3Q11 3Q12 3Q13 9M11 9M12 9M13

Shopping Center Tenant Sales (R$ million)

11.9%

9.2%

Operating Performance

19

1,078.7

1,154.3

1,067.7

1,138.8

3Q12 3Q13 9M12 9M13

SSS/sqm (month)

7.0% 6.7%

63.0

71.1

63.4

70.8

3Q12 3Q13 9M12 9M13

SSR/sqm (month)

12.8% 11.6%

Operating Performance

Occupancy (% of GLA) Occupancy Cost (%)

Delinquency Rate (25 days)

20

97.4%98.8% 98.5% 98.5% 97.7% 97.4% 97.2%

94.7% 95.1%97.2%

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13 w/o

Uberlândia and

Londrina

Occupancy (% GLA)

9.5%

8.7%

9.1% 9.2% 9.2% 9.1%9.3% 9.3% 9.4%

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Occupancy Cost (%)

2.92%

2.11%

2.61%

2.86%2.75%

2.38%

3.08%2.96%

3.09%2.91%

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13 w/o

Uberlândia

and Londrina

Delinquency Rate (25 days)

Revenue Breakdown

21

77%

1%7%

9%

5%

1%

Gross Revenue Breakdown in the quarter

Rent

Rent contract straight-lining

Service revenue

Parking revenue

Key Money

Other revenue

81%

7%

12% Fixed Rent Revenue

Turnover Rent

Revenue

Kiosks and

Merchandising

Costs and Expenses

22

10.6 14.6

31.6 40.4

4.6

7.5

15.9

17.1

3Q12 3Q13 9M12 9M13

Cost and Expenses (R$ million)

Cost of rentals and services Operating expenses

37.8%

28.1%62.0%

7.8%

Financial Performance

23

64.3 67.0

186.2 197.5

3Q12 3Q13 9M12 9M13

Net Revenue (R$ million)

4.2%

6.0%

63.8 65.2

181.6 193.6

3Q12 3Q13 9M12 9M13

NOI (R$ million)

2.1%

6.6%

50.2 49.4

141.9 149.1

78.0%

73.7%76.2% 75.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0.0

50.0

100.0

150.0

200.0

3Q12 3Q13 9M12 9M13

Adjusted EBITDA (R$ million) and Margin

5.1%

-1.5%

39.8 37.1

115.3 109.6

62.0%

55.4%

61.9%

55.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

3Q12 3Q13 9M12 9M13

Adjusted FFO (R$ million) and Margin

-6.8%

-4.9%

9.7%

Comparable malls NOI

Financial Performance (51% PDP)

24

52.5 53.7

150.2 159.8

3Q12 3Q13 9M12 9M13

Net Revenue (R$ million)

2.2%

6.4%

39.0 37.3

110.2 113.8

74.3%

69.4%

73.4%71.2%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

3Q12 3Q13 9M12 9M13

Adjusted EBITDA(R$ million) and Margin

3.3%

-4.5%

28.5 24.8

82.873.7

54.3%

46.2%

55.2%

46.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

3Q12 3Q13 9M12 9M13

Adjusted FFO(R$ million) and Margin

-13.1%

-11.0%

29.3 19.6

157.4 151.3

3Q12 3Q13 9M12 9M13

Net Income (R$ million)

-3.8%

-33.2%

Cash Position and Leverage

25 Data on 9/30/13

886.5

419.2

467.3

Total Debt Cash and cash

equivalents

Net Debt

Net Financial Debt (R$ million)

Fixed

14%

CDI

13%

TR

47%

IPCA

26%

Debt Profile

24.6 74.5 66.6 109.8 106.1

504.8

2013 2014 2015 2016 2017 2018 and

beyond

Financial Debt Amortization (R$ million)

Does not consider debt related to asset acquisitions

Thank you!

Investor Relations Website: www.sonaesierrabrasil.com.br/ir Email: [email protected] Phone: +55 (11) 3371 3692

SSB_Institutional Presentation_Nov 2013

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