31-01-2012 -institutional presentation january 2012

Institutional Presentation

http://www.sonaesierra.com/en-GB/homepage.aspx�

2

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.

Index

4 Company Fundamentals

11 Our Portfolio

15 Growth Strategy

7 Market and Sector Fundamentals

21 Operational and Financial Indicators

Parque D. Pedro Shopping ‘s Food Court (Campinas) 3

25 Recent Events

+41.4%

Expansion / Greenfield

Announced GLA Growth (2010 – 2013)(1)

(‘000 sqm)(2)

Owned GLA Growth (%)

+94.5% 190

+50.4% 118

+40.1% 107

+27.0% 200

154

Sonae Sierra Brasil at a glance

One of the leading developers, owners and operators of top quality and regionally dominant shopping centers in Brazil

► Defined Growth strategy: focus on low served cities’ middle class

► Largest secured growth in the sector: 3 greenfields, 2 expansions

recently concluded and 1 expansion at advanced stage, almost

doubling our owned GLA

► 3 other expansions already defined

► 10 shopping centers owned and managed (357k sqm total GLA)

► Occupancy rate of 97.4%

► Solid margins (EBITDA = 75.1% and FFO = 78.9%)

► Greenfield Expertise (62.4% of GLA)

Note: (1) As of September 30, 2011 (2) Referres to shopping center’s GLA only. .

► Leverage on the expertise, tenant relationships and market

recognition of our shareholders: Sonae Sierra SGPS and DDR

Corp (NYSE: DDR)

► Best-in-class controlling shareholders with significant experience in

the sector

► 33.35% free float

Secured Growth

Operating Expertise

Shareholders: solid base

4

Sierra Brazil 1

BV66.65%

Free Float33.35%

Ownership Structure

Post-IPO Ownership Breakdown Controlling Shareholders

► Over 21 years of history

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

► Over 2.0 mm sq m in total GLA

► 50/50 joint-venture between Sonae and Grosvenor

► NAV: €1.2 billion(1)

► Over 45 years of history

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

► 12 mm sq m in total GLA

► NYSE listed, SOx Compliant

► Equity value of US$3.2 billion(1)

Sierra Brazil 1 BV

Note: (1) as of September 30, 2011

Sonae Sierra Brasil benefits from best-in-class corporate governance and globally recognized sector expertise, arising from a solid and engaged controlling shareholders

5

http://www.sonaesierra.com/en-GB/homepage.aspx�

Index

6 Manauara Shopping (Manaus)


11 Our Portfolio

15 Growth Strategy



25 Recent Events

7

Despite the current turmoil in the global macro economic scenario, perspectives are compelling for Brazil

Macro Economic Scenario

IPCA Rate (%) Retail Sales Growth (%)

Selic Rate (%) GDP Growth Rate (%)

Source: MCM

Source: MCM Source: MCM

Source: IBGE

4.8%

6.2%

9.8%9.1%

5.9%

10.9%

2005 2006 2007 2008 2009 2010

5.7%

3.1%

4.5%

5.9%

4.3%

5.9%

6.6%

6.0%5.5%

4.7% 4.5%

2005 2006 2007 2008 2009 2010 2011e 2012e 2013e 2014e 2015e

18.00%

13.25%

11.25%

13.75%

8.75%

10.75% 11.00%10.00%

11.50% 11.50% 11.25%

2005 2006 2007 2008 2009 2010 2011e 2012e 2013e 2014e 2015e

3.2%3.9%

6.1%

5.2%

-0.7%

7.5%

3.1%3.5%

2.6%

4.9% 4.8%

2005 2006 2007 2008 2009 2010 2011e 2012e 2013e 2014e 2015e

Shopping centers in Brazil

Brazilian Shopping centers growth by region: 2014e

Shopping centers sales - CAGR (08-11): 16%

Source: IBOPE Source: IBOPE

Low shopping center market penetration

Source: ABRASCE and IBGE.

Total GLA (m²) / 1,000 inhabitants (2010)

2,180

USA Canada

1,290

SP

91

PR

53

MG

31

GO

34

AM

42

DF

143

Other BR states

34

Average: 49

Mexico

81

Source: IBOPE

Southeast 2010 205

South 2010 73

Northeast 2010 55

Mid West 2010 37

North 2010 11

+29%

+15%

+20%

+16%

+72%

Southeast 2014 265

South 2014 84

Northeast 2014 66

Mid West 2014 43

North 2014 19

70.1 78.889.5

109.1

13.7%14.0% 14.0%

15.4%

2008 2009 2010 2011eSales (R$ billion) % of Total Retail Sales

Attractive shopping center industry fundamentals Despite recent growth, decreasing vacancy rates and low penetration vis-à-vis developed markets indicate significant room for new shopping centers in Brazil

8

342359

381

419

2008 2009 2010 2011e

Fast growing middle class Around 39 million people have moved upwards into the middle class, while middle class disposable income has doubled

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

Note: (1) Income available for spending and saving Source: Cetelem “O Observador 2011”, IBGE and Itau Securities

122

243

2005 2010

+99%

Over R$ 12 billion increase in monthly disposable income

Total credit to individuals outstanding (R$ bn)

Source: Cetelem “O Observador 2011”

Increasing middle class

51% 25%

34%

53%

21% 15%

2005 2010

Population: 182 mm Population: 191 mm

+16 mm people

+39 mm people

A+B

C

D+E

Upp

er c

lass

M

iddl

e cl

ass

Low

er c

lass

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

6.8x

-

200

400

600

Jan-01 May-02 Sep-03 Jan-05 May-06 Sep-07 Jan-09 May-10

- 45 mm people

9

Index

Shopping Penha (São Paulo) 10


11 Our Portfolio

15 Growth Strategy



25 Recent Events

Focus on dominant malls in underserved medium and large cities, targeting middle class customers Sonae Sierra Brasil has an established footprint in the State of São Paulo and its growth strategy is based on offering high quality, market dominant developments in underserved regions

Core portfolio: 9 properties Development strategy: 1 opened and 3 greenfields

Core Portfolio of Assets

Strong track record in Brazil’s most dynamic region Growth strategy focused on underserved regions

Parque D. Pedro

► Campinas (SP) ► Population: 1,089k ► GLA: 121.1k sq m ► Occupancy rate: 94.9% ► Over 20 mm visits in 2010

Total GLA 2010: 298k sq m

Owned GLA 2010: 151k sq m

Greenfield

Manauara Shopping

► Manaus (AM) ► Population: 1,832k ► GLA: 46.8k sq m ► Occupancy rate: 99.0%

# of competitors in area of influence

Parque D. Pedro 2

Boavista 2

Penha 2

Franca 1

Tivoli 1

Metrópole 2

Pátio Brasil 2

Plaza Sul 1

Campo Limpo 2

Total GLA 2013: 559k sq m

Owned GLA 2013: 391k sq m

# of cities with more than 300k inhabitants in Brazil

+ 81

41.6%58.4%

São Paulo Other states

Owned GLA concentration

Shopping centers

Recently opened mall

Shopping centers

Manaus

Goiânia

Uberlândia

Londrina

11

Portfolio

Greenfield

Shopping centers

4

5

1 8

9 3 2

6

7

11 13

12

10

1. Parque D. Pedro ► Campinas (SP) ► GLA (sqm): 121.1

► Stores : 402 ► 94.9% of GLA leased

2. Boavista Shopping ► São Paulo (SP) ► GLA (sqm): 16.0


3. Penha Shopping ► São Paulo (SP) ► GLA (sqm): 29.6


4. Franca Shopping ► Franca (SP) ► GLA (sqm): 18.1


5. Tivoli Shopping ► Santa Barbara d'Oeste (SP)

► GLA (sqm): 22.1


6. Metrópole Shopping ► São Bernardo do Campo (SP) ► GLA (sqm): 28.7


7 Pátio Brasil ► Cidade: Brasília (DF) ► GLA (sqm): 28.8 ► Stores : 234 ► 98.1% of GLA leased

8. Plaza Sul Shopping ► São Paulo (SP) ► GLA (sqm): 23.0


9. Campo Limpo Shopping ► São Paulo (SP) ► GLA (sqm): 22.4


10. Manauara Shopping ► Manaus (AM) ► GLA (sqm): 46.8


11 Uberlândia Shopping ► Uberlândia (MG) ► GLA (sqm): 45.3

► Opening: 1Q12

12 Boulevard Londrina Shopping

► Londrina (PR) ► GLA (sqm): 47.8

► Opening; 2H12

13 Passeio das Águas Shopping

► Goiânia (GO) ► GLA (sqm): 78.1

► Opening: 2H13

Data on September 30, 2011

Our portfolio is composed by 10 operating shopping malls, totaling 1,973 stores, 357 thousand sqm of total GLA and 210 thousand sqm of owned GLA. Until 2013 there will be 3 new malls, adding 164 thousand sqm of owned GLA to the portfolio

12

Controlling interests in most shopping centers Sonae Sierra Brasil average ownership stake is 59% in its 10 operating properties. It will reach 71% when all three greenfield developments are completed

Rationale Percentage of the Company’s interest Shopping Center City State GLA

(‘000 sqm) Stake Management

Parque D. Pedro(1) Campinas SP 121.0 51.0% Penha São Paulo SP 29.6 56.1% Metrópole São Bernardo SP 28.7 100.0% Tivoli Santa Bárbara

d’Oeste SP 22.1 30.0% Pátio Brasil Brasília DF 28.8 10.4% Boavista São Paulo SP 16.0 100.0% Franca Franca SP 18.1 67.4% Plaza Sul São Paulo SP 23.0 60.0% Campo Limpo São Paulo SP 22.4 20.0% Manauara Manaus AM 46.8 100.0% Weighted Average 58.9%

Uberlândia Uberlândia MG 45.3 100.0% Londrina Londrina PR 47.8 84.5%(2) Goiânia Goiânia GO 78.1 100.0% Weighted Average 70.8%

Note: (1) Sonae Sierra and DDR hold an additional 25.9% indirect ownership in Parque D. Pedro through another structure. (2) Ownership considering partner will fully exercise its rights in the project

Ability to expand and adapt to market trends

Control the management services of 100% of the malls

Strategic control of the malls

13

Index

Shopping Plaza Sul’s Food Court (São Paulo) 14


11 Our Portfolio

15 Growth Strategy



25 Recent Events

Secured Growth

Owned GLA growth (‘000 sqm)

+95%

Metrópole (I)

201*

391

2010 2011 2012 2013 Total

Expansion Greenfields

9

Campo Limpo

Uberlândia Londrina

Goiânia

PDP (II)

Metrópole (II)

Tívoli 86

17

78

Sonae Sierra Brasil has a solid pipeline of new developments and expansions underway that will almost double the Company’s GLA within 3 years

15 *Data on September 30, 2011, adjusted with the stake swap operation between Plaza Sul and Penha.

Greenfield Projects – Uberlândia Shopping

Construction pictures

Project Illustration

Uberlândia Shopping

City Uberlândia

State MG

Opening 1Q12

GLA (sqm) 45.3

SSB’s stake 100%

Committed GLA 89%

Gross Capex Incurred (R$ MM) 151.3

Scheduled to open in the 1Q12, the shopping mall has over 89% of its GLA already leased, close to the occupancy target for its opening

Data on September 30, 2011 16

Greenfield Projects – Boulevard Londrina Shopping

Construction pictures


Boulevard Londrina Shopping

City Londrina

State PR

Opening 2H12

GLA (sqm) 47.8

SSB’s stake* 84.5%

Committed GLA 65%


Scheduled to open in 2H12, the shopping mall is part of a big renovation project of na old industrial region in downtown Londrina

Data on September 30, 2011 * Ownership considering partner will fully exercise its rights in the project 17

Greenfield Projects – Passeio das Águas Shopping


Passeio das Águas Shopping

City Goiânia

State GO

Opening 2H13

GLA (sqm) 78.1

SSB’s stake 100%

Committed GLA 36%


Scheduled to open in 2H13, the biggest project of our portfolio and is located within the growth sector of Goiânia

Data on September 30, 2011 18

Expansions

Metrópole (Expansion I)

São Bernardo (SP)

100%

9.0

Nov 2011

1H2010

100%

Campo Limpo

São Paulo (SP)

20%

3.0

Sep 2011

1H2011

100%

Parque D. Pedro (Expansion I)

Campinas (SP)

51%

5.0

Nov 2010

1H2010

100%

Parque D. Pedro (Expansion II)

Campinas (SP)

51%

5.0

2013

1H2013

n.a.

Metrópole (Expansion II)

São Bernardo (SP)

100%

12.0

2013

2H2012

n.a.

Tivoli

Sta. Bárbara D’Oeste (SP)

30%

7.0

2013

1H2012

n.a.

*Data on September 30, 2011

Location

Sonae Sierra Brasil Stake

Additional Total GLA (‘000 sq m)

Expected Opening

Construction Start Date

% of GLA already committed*:

Future expansions Concluded expansion

19

Shopping Campo Limpo’s façade (São Paulo) 20

Index


11 Our Portfolio

15 Growth Strategy



25 Recent Events

Operational and Financial Indicators

111

Occupancy Rate (% of GLA)

111

Sales (R$ million)

111

SSS/sqm

111

SSR/sqm

851 937

2,426 2,712

3Q10 3Q11 9M10 9M11

10.1%

11.8%

97.3%

96.3%97.0% 97.2%

98.3% 98.5% 98.4%98.0% 97.7% 97.5% 97.4%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

884

949

853

928

3Q10 3Q11 9M10 9M11

7.3%8.7%

48

55

47

53

3Q10 3Q11 9M10 9M11

13.0% 12.4%

21

Operational and Financial Indicators

2443

88122

3Q10 3Q11 9M10 9M11

38.8%

81.1%

111

Adjusted EBITDA and Margin (R$ million)

111

Net Revenue (R$ million)

111

Adjusted FFO and Margin (R$ million)

111

Net Operating Income - NOI (R$ million)

74.1% 75.1% 75.3% 76.0%

52.8%

78.9%

66.2%

77.4%

45 55

133158

3Q10 3Q11 9M10 9M11

18.7%

21.2%

33 41

100120

3Q10 3Q11 9M10 9M11

22.9%

19.7%

41 52

124 150

3Q10 3Q11 9M10 9M11

21.0%

25.9%

22

23

Net Cash Position and Modest Leverage

Data on September 30th, 2011

Net Cash Position (R$ million) Debt Profile

Debt Amortization Schedule (R$ million)

Fixed48%

CDI13%

TR39%

19.842.3 42.3 41.9

185.9

Up to 2012 2013 2014 2015 2016 onwards

440,1

107,8

332,3

Cash and Cash Equivalents

Debt Net Cash

Contracted Debt Financing Committed Amount (R$

MM)

Term (Years)

Interest Rate

Balance as of

9/30/11 (R$ MM)

Working Capital 20 5 CDI + 2.85% 19

Working Capital 27 6 CDI + 3.30% 26

Manauara Shopping 112 12 8.5% 128

Metrópole Shopping – Expansion I 53 8 TR + 10.3% 53

Uberlândia Shopping 81 15 TR + 11.30% 59

Boulevard Londrina Shopping 120 15 TR + 10.90% 47

Passeio das Águas Shopping 200 12 TR + 11.00% 0

Total 614 332

Average 12.1 11.70%

Índice

Shopping Metrópole (São Bernardo do Campo) 24


11 Our Portfolio

15 Growth Strategy



25 Recent Events

25

Recent Events – First Issuance of Debentures

Emission details Total amount of the issue R$300 million Number of debentures 30,000 Unit par value R$10,000

Characteristics Simple, unsecured, non convertible, 2 series (1st: CDI and 2nd: IPCA)

Banks Coordinators Itaú BBA (leader), BTG and Bradesco

1st series remuneration CDI + 1.25%, if AA rating CDI + 1.30%, if AA- rating

2nd series remuneration IPCA + 7.10%, if AA rating IPCA + 7.20%, if AA- rating

The net funds raised by the Company with the Issue will be allocated (i) to the acquisition of new plots of land; (ii) to the increase of the Company’s participation in shopping malls; (iii) to the acquisition of new shopping malls; (iv) to the development of new shopping malls; and (v) to constitute cash reserve for the Company.

26

Recent Events – SSB obtains Plaza Sul control

Transaction overview SSB receives:

• 30.00% of Shopping Plaza Sul, valued at R$102.9 million

CSHG receives: • 17.12% of Shopping Penha, valued at R$39.0 million and • R$63.9 million in cash

Transaction IRR: 16.9% (nominal, unleveraged and after taxes)

Cap rates: • 9.4% for Plaza Sul transaction and • 9.5% for Penha transaction

Opening 1994 1992

Total GLA (‘000 sqm) 23.0 29.6

SSB’s ownership 30.00% → 60.00% 73.18% → 56.06%

Occupancy rate 99.4% 99.0%

Sales/sqm (2011 monthly avg.) R$ 1,436 R$ 990

Rent/sqm (2011 monthly avg.) R$ 98.4 R$ 60.9

The transaction rational was to reinforce Sonae Sierra Brasil’s strategy to pursue opportunistic M&A activities, adding to the portfolio the controlling ownership of a high-quality mall located in the city of São Paulo while maintaining the controlling ownership stake in another asset.

Shopping Plaza Sul

Shopping Penha

Thank You

Q&A

Investors Relations Carlos Alberto Correa Investors Relations Officer Murilo Hyai Investors Relations Manager Eduardo Pinotti de Oliveira Investor Relations Analyst Website: www.sonaesierrabrasil.com.br/ri Email: [email protected] Phone: +55 (11) 3371-4188

31-01-2012 -institutional presentation january 2012

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