ssb inst pres_dec12_eng

Institutional Presentation

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

Index

3

4 Company Fundamentals

11 Our Portfolio

15 Growth Strategy

7 Market and Sector Fundamentals

20 Operational and Financial Indicators

27 Recent Events

• 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

• 33.35% free float

• Defined growth strategy: focus on under served cities’ middle

class

• Largest secured growth in the sector: 2 greenfields under

construction, 1 greenfield and 3 expansions recently concluded

almost doubling our owned GLA

• 2 other expansions already defined

• 8 shopping centers owned and managed (322k sqm total GLA)

• Occupancy rate of 98.0%(2)

• Best-in-class margins (EBITDA = 80.0% and FFO = 65.5%)

• Greenfield Expertise (62.4% of GLA)

• 2 third party shopping centers managed

4

Operating Expertise(1)

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 of Brazil and

Latin America.

• The mall is located in the city of

Campinas, in the São Paulo State, 100

kms from the city of São Paulo.

• Sonae Sierra Brasil owns 51% of 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

Note: (1) As of September 30, 2012. (2) Excluding Uberlândia Shopping

Ownership Structure

5

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

• Equity value of US$4.1 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: €1.1 billion (2)

• 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 September 30, 2012 (2) As of November 8, 2012

Index

6


11 Our Portfolio


15 Growth Strategy


27 Recent Events

3.9%

6.1%

5.2%

-0.3%

7.5%

2.7%

1.6%

4.0%4.5%

3.5% 3.7%

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e

13.25%

11.25%

13.75%

8.75%

10.75%11.00%

7.25%8.25% 8.25%

7.25% 6.75%

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e

3.1%

4.5%

5.9%

4.3%

5.9%

6.5%

5.4% 5.2% 5.0%4.7% 4.5%

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e

Macro Economic Scenario

7

Despite uncertainties in the global macro economic scenario, the outlook for continued sales growth in Brazil is strong

IPCA Rate (%) Retail Sales Growth (%)

4.8%

6.2%

9.8%9.1%

5.9%

10.9%

6.7%

2005 2006 2007 2008 2009 2010 2011

Selic Rate (%) GDP Growth Rate (%)

Source: Bradesco & BCB

Source: Bradesco & BCB Source: Bradesco & BCB

Source: IBGE

-

500

1,000

1,500

2,000

2,500

USA

Can

ada

Euro

pe

Chi

le

Mex

ico

Col

ombi

a

Peru

Bra

zil

DF SP

PR AM

GO

MG

GLA/1,000 inhabitants (2011)

Attractive shopping center industry fundamentals

8

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

Shopping centers in Brazil Shopping center sales – CAGR (08-11): 16%

Low shopping center market penetration Brazilian shopping center growth by region: 2014e

Source: ABRASCE, IBGE and BTG. 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 2011Sales (R$ billion) % of Total Retail Sales

Source: IBOPE Source: ABRASCE

Brazil Average: 58

376 392 408 430

2008 2009 2010 2011

Fast growing middle class

9

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

cla

ss

Mid

dle

cla

ss

Low

er c

lass

- 48 mm people

R$ 30 billion increase in monthly disposable income

Note: (1) Income available for spending and saving 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

Index

10


11 Our Portfolio


15 Growth Strategy


27 Recent Events

Portfolio

11

Our portfolio is composed of 8 operating shopping malls, totaling 1,652 stores, 322 thousand sqm of total GLA and 231 thousand sqm of owned GLA. By year end 2013, there will be more 2 new malls, adding 118 thousand sqm of owned GLA to the portfolio. The Company also manages 2 third party malls totaling 241 stores and 52 thousand sqm of GLA.

Data in November of2012

3

1 5

6 2 4

8 10

9

7

1. Parque D. Pedro • Campinas (SP) • GLA tsd sqm: 121.0

• Stores: 401

2. Boavista Shopping • São Paulo (SP) • GLA tsd sqm: 15.9

• Stores: 147

3. Franca Shopping • Franca (SP) • GLA tsd sqm: 18.5

• Stores: 105

5. Shopping Plaza Sul • São Paulo (SP) • GLA tsd sqm: 23.2

• Stores: 221

6. Shopping Campo Limpo • São Paulo (SP) • GLA tsd sqm: 22.3

• Stores: 148

4. Shopping Metrópole • São Bernardo do

Campo (SP) • GLA tsd sqm: 28.6

• Stores: 181

7. Manauara Shopping • Manaus (AM) • GLA tsd sqm: 46.8

• Stores: 231

9. Boulevard Londrina Shopping • Londrina (PR) • GLA tsd sqm: 47.8

• Inauguração: 1T13

10. Passeio das Águas Shopping • Goiânia (GO) • GLA tsd sqm: 78.1

• Inauguração: 4Q13

8. Uberlândia Shopping • Uberlândia (MG) • GLA tsd sqm: 45.3

• Stores: 218

12. Tivoli Shopping • Sta. Bárbara

d’Oeste (MG) • GLA tsd sqm: 22.1

• Stores: 146

11

Greenfield

Malls in operation

Third party managed malls

11. Shopping Penha • São Paulo (SP) • GLA tsd sqm: 29.7

• Stores: 195

12

Controlling interests in most of shopping centers

12

Sonae Sierra Brasil’s average ownership stake is 72% in its 8 operating properties. It will reach 78% when the two greenfield developments are completed

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

Rationale

Ability to expand and adapt to market trends

Control the management

services of 100% of the malls

Strategic control of the malls

Shopping Center City State GLA (‘000 sqm) % SSB Management

Parque D. Pedro(1) Campinas SP 121.0 51.0% Metrópole São Bernardo SP 28.6 100.0% Boavista São Paulo SP 15.9 100.0% Franca Franca SP 18.5 76.9% Plaza Sul São Paulo SP 23.2 60.0% Campo Limpo São Paulo SP 22.3 20.0% Manauara Manaus AM 46.8 100.0% Uberlândia Uberlândia MG 45.3 100.0% Average 71.8%

Londrina Londrina PR 47.8 84.5%(2) Goiânia Goiânia GO 78.1 100.0% Average 78.1%

Third party malls under management Penha São Paulo SP 29.7 Tivoli Santa Bárbara

d’Oeste SP 22.1

Study Case: Uberlândia Shopping

13

Shopping center data

City Uberlândia

State Minas Gerais

Opening March 2012

GLA (‘000 sqm) 45.3

SSB stake 100%

Number of Stores 218

Anchor stores 8

Cinema screens 5

Parking spaces 2,400

Occupancy rate 93.0%

Uberlândia Shopping stands out for its innovative architecture

Uberlândia Shopping brought renowned brands to Uberlândia and its region

Index

14


11 Our Portfolio

15 Growth Strategy



27 Recent Events

Owned GLA Growth

Sonae Sierra Brasil has a robust new development and expansion pipeline which will increase the Company’s owned GLA by over 57% by year end 2013.

15

231

364

40

78

15

Nov-12** Boulevard Londrina (Londrina, PR)

Passeio das Águas (Goiânia, GO)

Expansions* 2014

Owned GLA Growth ('000 sqm)

*Expansions in Shopping Metrópole and Parque D. Pedro scheduled for 2014** GLA projected to Nov/12 after sale of assets

+57.6%

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:

16

Return to the shareholder

Greenfields: • Boulevard

Londrina • Passeio das Águas • Projects yet to be

announced

Expansion of existing malls: • Shopping

Metrópole • Parque D. Pedro • Expansions yet to

be announced

M&A opportunities:

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

Greenfields: Boulevard Londrina Shopping

Greenfield Details City Londrina State PR Expected Opening 1Q13 GLA ('000 sqm) 47.8 SSB's Ownership Interest* 84.5% Committed GLA 74% Gross Capex Incurred (R$ MM) 193.5

Scheduled to open in 1Q13, the shopping mall is part of a big renovation project of an old industrial region in downtown Londrina

* Ownership considering partner will fully exercise its rights in the project.

17

Shopping center construction site Project Illustration

Data on 9/30/12

Greenfields: Passeio das Águas Shopping

Scheduled to open in 4Q13, the biggest project of our portfolio and is located within the growth sector of Goiânia

Greenfield Details City Goiânia State GO Expected Opening 4Q13 GLA ('000 sqm) 78.1 SSB's Ownership Interest 100% Committed GLA 57% Gross Capex Incurred (R$ MM) 223.0

18

Shopping center construction site Project Illustration

Data on 9/30/12

Index

19


11 Our Portfolio

15 Growth Strategy



27 Recent Events

Shopping Center Sales

20

Shopping Center Tenant Sales(R$ thousand) 3Q12 3Q11 Var. % 9M12 9M11 Var. %Shopping Penha 85,478 79,202 7.9% 252,632 231,490 9.1%Shopping Metrópole 82,722 64,336 28.6% 241,256 187,157 28.9%Tivoli Shopping 46,191 42,601 8.4% 135,426 123,376 9.8%Franca Shopping 41,999 34,892 20.4% 120,051 103,089 16.5%Pátio Brasil 82,863 82,560 0.4% 242,910 243,046 -0.1%Parque D. Pedro Shopping 307,648 295,238 4.2% 910,092 859,746 5.9%Boavista Shopping 60,316 57,260 5.3% 178,762 166,800 7.2%Shopping Plaza Sul 91,120 91,577 -0.5% 274,053 262,115 4.6%Shopping Campo Limpo 72,340 57,035 26.8% 202,491 163,043 24.2%Manauara Shopping 159,627 132,214 20.7% 450,881 371,831 21.3%Uberlândia Shopping 51,768 - - 120,207 - -Total 1,082,073 936,915 15.5% 3,128,761 2,711,691 15.4%

852 937 1,082

2,426 2,712

3,129

3Q10 3Q11 3Q12 9M10 9M11 9M12

Shopping Center Tenant Sales (R$ million)

15.5%

15.4%

Note: The Company sold its entire ownership interest in Shopping Penha, Tivoli Shopping and Patio Brasil in 11/05/12.

Operating Performance

21

Same-Store Sales per sqm

960.3

1,036.1

918.9

1,000.9

3Q11 3Q12 9M11 9M12

7.9%

8.9%

Same-store Sales (per sqm) 3Q12 3Q11 Var. %Satellite 1,566.0 1,446.4 8.3%Anchor 863.6 800.5 7.9%Leisure 214.9 213.7 0.6%Total 1,036.1 960.3 7.9%

Same-Store Rents per sqm

53.8

59.0

51.3

57.2

3Q11 3Q12 9M11 9M12

9.7%

11.5%

Same-store Rents (per sqm) 3Q12 3Q11 Var. %Satellite 110.0 99.0 11.1%Anchor 25.2 23.8 5.9%Leisure 22.0 21.0 4.8%Total 59.0 53.8 9.7%

Occupancy ratio

22

97.5% 97.4%

98.8% 98.5%97.4% 97.7% 98.2%

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

Occupancy ratio (% of GLA)

Data on 06/30/12

The vacancy ratio in our shopping centers are historically low, showing the resilience of the portfolio

(%) 9/30/2012Shopping Penha 98.7%Shopping Metrópole 99.4%Tivoli Shopping 99.3%Franca Shopping 99.1%Patio Brasil 97.8%Parque D. Pedro* 97.9%Boavista Shopping 94.1%Shopping Plaza Sul 98.0%Shopping Campo Limpo 99.4%Manauara Shopping 99.4%Uberlândia Shopping 93.0%Total 97.7%

Shopping center occupancy ratio

Note: The Company sold its entire ownership interest in Shopping Penha, Tivoli Shopping and Patio Brasil in 11/05/12.

40.6 57.6

119.3149.0

74.2%

89.6%

75.7%80.0%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%

-20.0

30.0

80.0

130.0

180.0

230.0

3Q11 3Q12 9M11 9M12

EBITDA (R$ million) and Margin

41.9%

24.9%

42.7 46.9

121.5 121.9

78.0%72.9%

77.1%

65.5%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

-20.0

30.0

80.0

130.0

180.0

230.0

3Q11 3Q12 9M11 9M12

FFO (R$ million) and Margin

9.7%

0.3%

51.7 63.8

150.3181.6

3Q11 3Q12 9M11 9M12

NOI (R$ million)

23.4%

20.9%

54.8 64.3

157.7186.2

3Q11 3Q12 9M11 9M12

Net Revenue (R$ million)

17.4%

18.1%

Financial Performance

23

30.4 46.489.8

117.2

70.9%

88.4%

72.6%78.0%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%

-20.0

30.0

80.0

130.0

180.0

230.0

3Q11 3Q12 9M11 9M12

EBITDA (R$ million) and Margin

53.0%

30.6%

58.529.3

180.2157.4

3Q11 3Q12 9M11 9M12

Net Income (R$ million)

-49.9%

-12.6%

42.8 52.5

123.7150.2

3Q11 3Q12 9M11 9M12

Net Revenue (R$ million)

22.7%

21.4%

Financial Performance (51% PDP)

24

32.2 35.6

91.3 89.6

75.1%

67.7%73.8%

59.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

0.020.040.060.080.0

100.0120.0140.0160.0180.0

3Q11 3Q12 9M11 9M12

FFO (R$ million) and Margin

10.6%

-1.9%

Cash Position and Leverage

25

Financial Net Debt (R$ MM) Financial Debt Amortization (R$ MM)*

Debt Profile

Data on 9/30/12

Contracted Debt Financing Committed Amount (R$ MM)

Term (years) Interest Rate

Balance as of 9/30/12 (R$

million)

Working Capital 20 5 CDI + 2.85% 14

Working Capital 27 6 CDI + 3.30% 21

Manauara Shopping 112 12 8.50% 135

Metrópole Shopping - Expansion I 53 8 TR + 10.30% 53

Uberlândia Shopping 81 15 TR + 11.30% 56

Boulevard Londrina Shopping 120 15 TR + 10.90% 78

Passeio das Águas Shopping 200 12 TR + 11.00% 74

Debentures - 1st series 95 5 CDI + 0.96% 98

Debentures - 2nd series 205 7 IPCA + 6.25% 210

Total 914 739

Weighted Average 10.2 11.06% Considering LTM TR at 0.92% p.a., CDI at 9.43% p.a. and IPCA at 5.28% as of September 30th, 2012

15.7 59.9 49.4 50.5 93.8 89.6

380.3

4Q12 2013 2014 2015 2016 2017 2018 and beyond

739.2

168.1

571.2

Total Debt Cash and cash equivalents

Net Debt

Fixed18%

CDI18%

TR35%

IPCA29%

*Does not consider debt related to asset acquisition.

Index

26


11 Our Portfolio

15 Growth Strategy



27 Recent Events

Recent Events: M&A activities

27

Sale of ownership interest in Shopping Penha

Sale of ownership interest in Tivoli Shopping

Transaction and Mall Overview

Ownership interest sold 51.0%

Value of the transaction R$ 131.2 MM

Cap rate of the transaction 8.2%

SSB previous interest 51.0%

SSB new interest -

Opening 1992

Rent/sqm (R$) 57.7

Sales/sqm (R$) 987.2

Occupancy ratio (%) 98.7%






SSB new interest -

Opening 1998

Rent/sqm (R$) 44.6



Sale of ownership interest in Pátio Brasil Shopping






SSB new interest -

Opening 1997

Rent/sqm (R$) 91.3



Thank you!

Investor Relations Website: www.sonaesierrabrasil.com.br/ir Email: [email protected] Phone: +55 (11) 3371-4188

ssb inst pres_dec12_eng

Documents

sonae sierra

gla tsd sqm

owned gla

entire ownership

owned gla

store sales

15 growth

largest developers