ssb institutional mar2014_en

R: 102

G: 98

B: 0

R: 124

G: 106

B: 85

R: 164

G: 0

B: 70

R: 0

G: 90

B: 132

R: 187

G: 140

B: 10

R: 246

G: 137

B: 51

R: 212

G: 209

B: 15

R: 238

G: 43

B: 116

R: 98

G: 202

B: 227

Company Presentation March 2014

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

Parque D. Pedro Shopping

Shopping Metrópole Manauara Shopping

Uberlândia Shopping

Index

4

4 Company Fundamentals

9 Our Portfolio

28 Appendix - Market and Sector Fundamentals

12 Operational and Financial Indicators

22 Case Studies

• Leverage on the expertise, tenant relationships and market

recognition of our majority shareholders

• Controlling shareholders with significant experience in the sector

• 33.4% free float

• Roughly 90% of leases are fixed, providing significant

foreseeability

• Lowest common charge in the sector, as a result of malls’ formats

and Company’s efficiency

• Centralized back office structure

• Prudent leverage and cash management

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

• Occupancy rate of 97.2%(1)

• Best-in-class margins (Adj. EBITDA = 75.0% and Adj. FFO =

53.6%)

• Greenfield Expertise (84% of GLA)

• 2 third-party managed malls

5

Operating Expertise

Strong Shareholders Base

Competitive Advantages

• 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

24.6 24.6

25.1

79.9 80.8

102.7

108.4

128.4

150.0 148.5

200.0

203.7

208.5

231.3

353.7

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

21.0%

CAGR

20

12

20

13

Pátio Brasil

Expansion

PDP

Shopping

Boavista

Opening

Acquisition of an

additional 20%

ownership interestin Plaza Sul

Acquisition of 50% of

Sonae Sierra’s ownership interest in SSB Brasil by DDR

Campo Limpo

Opening

Manauara

Opening

PDP

Expansion

Campo Limpo and

Metrópole Expansion

Acquisition of an additional

17% ownership interest in Metrópole

Swap - Acquisition of

an additional 30.0%

ownership interest in Plaza Sul / Sale of 22.2% in Penha

Uberlândia

Opening

Londrina

Opening

Goiânia Opening

Acquisition of an

additonal ownershipinterest in Metrópole,

Plaza Sul and Tivoli

Acquisition of an

additonal 9.5% ownership interest in

Franca

Sale of 51.0%

ownership interest in Penha; 30.0% in Tivoli; 10.4% in Pátio Brasil

Sonae Sierra enters the Brazilian

shopping center market, creating a joint-venture with Enplanta Engenharia: Sonae Enplanta

Portfolio Timeline

6

8.0

15.6 15.2

17.8

10.7 12.3

SSB BRMalls Multiplan Iguatemi Aliansce GeneralShopping

176.0

138.2

173.0

99.6

124.8

48.5

SSB BR Malls Multiplan Aliansce Iguatemi GeneralShopping

Development Capabilities

7

48.6% of GLA is less

than 5 years old

Owned GLA developed in the last 3 years Average Age of Malls (owned GLA weighted)

SSB has been the leading developer and owns the newest portfolio among listed peers

Ownership Structure

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$5.9 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: €1.0 billion(1)

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

• Operations in retail, properties, shopping centers and telecommunications

• Market value: €2.6 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%

On March 10, 2014 DDR announced that it reached an agreement to sell its investment in Sierra Brazil 1 B.V.

and PDP 1 B.V. for US$ 344 million to Alexander Otto and his affiliates

Note: (1) As of March 2014 Source: Reuters, Sonae Sierra

8

Index

9


9 Our Portfolio



22 Case Studies

Portfolio

10

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: 149

4. Shopping Metrópole

• São Bernardo do Campo (SP)


• Stores: 191

7. Manauara Shopping

• Manaus (AM)


• Stores: 233

9. Boulevard Londrina Shopping

• Londrina (PR)


• Stores: 221

10. Passeio das Águas Shopping

• Goiânia (GO)


• Stores: 259

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

11

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

do Campo 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%

Boulevard Londrina Londrina PR 48.4 88.6%

Passeio das Águas Goiânia GO 77.9 100.0%

Average 78.6%

Third party malls under management

Penha São Paulo SP 29.7

Tivoli Santa Bárbara

d’Oeste SP 22.1

Index

12


9 Our Portfolio



22 Case Studies

Shopping Center Sales

13 Data as of 4Q13

988 1,117 1,285

3,101 3,614

4,013

4Q11 4Q12 4Q13 2011 2012 2013

Shopping Center Tenant Sales (R$ million)

15.1%

11.0%

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%

Shopping Center Tenant Sales

(R$ thousand)Shopping Metrópole 108,196 105,027 3.0% 353,921 346,283 2.2%

Franca Shopping 60,760 55,317 9.8% 197,776 175,368 12.8%

Parque D. Pedro Shopping 406,005 375,936 8.0% 1,312,755 1,286,028 2.1%

Boavista Shopping 78,238 73,783 6.0% 264,358 252,545 4.7%

Shopping Plaza Sul 136,013 125,074 8.7% 424,250 399,127 6.3%

Shopping Campo Limpo 104,226 95,698 8.9% 328,403 298,189 10.1%

Manauara Shopping(1) 223,804 222,818 0.4% 728,451 673,699 8.1%

Uberlândia Shopping 75,457 63,030 19.7% 249,805 183,237 36.3%

Boulevard Londrina Shopping 55,927 - N/A 116,382 - N/A

Passeio das Águas Shopping 36,614 - N/A 36,614 - N/A

Total 1,285,241 1,116,684 15.1% 4,012,716 3,614,477 11.0%

4Q13 4Q12 Δ 2013 2012 Δ

14

Same Store Sales (SSS)

Same Store Rent (SSR)

Operating Performance

Data as of 4Q13

9.1%9.8% 9.8%

7.3%7.9%

9.8%9.2%

7.9%

6.4% 6.1%

4.4%

7.0%7.9%

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

9.5%

11.1%

12.7% 13.0% 12.7%12.1%

13.1%

9.7%

11.7% 11.8%10.8%

12.8%

10.8%

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Operating Performance

15 Data as of 4Q13

98.8% 98.5% 97.4% 97.7% 97.4% 97.2%94.7% 95.1%

93.7%

97.2%

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 4Q13 w/oNew Malls*

Occupancy (% GLA)Occupancy (% GLA) 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)

8.7%

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

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

Occupancy Cost (%)

2.11%

2.61%

2.86%2.75%

2.38%

3.08%2.96%

3.09% 3.05%

2.61%

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 4Q13 w/oNew Malls*

Delinquency Rate (25 days)

* Uberlândia, Londrina and Passeio das Águas Shopping Centers

* Uberlândia, Londrina and Passeio das Águas Shopping Centers

Revenue Breakdown

16 Data as of 4Q13

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

Revenues (R$ million) 4Q13 4Q12 Δ 2013 2012 Δ

Rent 71.4 63.6 12.2% 241.5 221.8 8.9%

Rent contract straight-lining (0.5) (0.5) -2.9% 2.0 2.6 -23.5%

Service revenue 5.8 5.0 16.5% 20.2 17.8 13.7%

Parking revenue 7.9 7.2 9.1% 27.9 26.5 5.5%

Key Money 4.7 3.0 56.1% 19.0 12.1 57.4%

Other revenue 1.8 0.7 166.8% 5.2 2.8 86.7%

Total Gross Revenue 91.1 79.0 15.3% 315.8 283.4 11.4%

78%

6%

9%

5%

2%

Gross Revenue Breakdown in the quarter

Rent

Service revenue

Parking revenue

Key Money

Other revenue

77%

13%

10% Fixed Rent Revenue

Turnover Rent

Revenue

Kiosks andMerchandising

Costs and Expenses

17 Data as of 4Q13

Cost and Expenses (R$ million)

11.6 18.3

43.2

58.7

4.1

5.1

20.0

22.3

4Q12 4Q13 2012 2013

Cost and Expenses (R$ million)

Cost of rentals and services Operating expenses

57.5%

36.0%25.2%

11.4%

Costs and Expenses (R$ million) 4Q13 4Q12 Δ 2013 2012 Δ

Depreciation and amortization 0.6 0.5 13.2% 2.3 1.8 30.2%

Personnel 8.0 7.1 12.2% 31.7 28.7 10.5%

External services 2.6 2.8 -4.8% 11.4 10.5 8.9%

Occupancy expense (vacant stores) 5.7 1.8 215.1% 14.5 6.1 137.3%

Cost of contractual agreements with

tenants2.6 0.7 269.2% 6.3 2.2 183.9%

Provision for bad debts 0.1 - N/A 2.8 2.4 16.3%

Rent 0.6 0.5 15.5% 2.8 2.6 7.2%

Other 3.2 2.3 38.0% 9.2 8.9 3.2%

Total 23.4 15.7 49.1% 81.0 63.2 28.2%

Financial Performance

18 Data as of 4Q13

57.4 57.8

199.3 206.9

81.3%73.8% 77.6% 75.0%

-1050.0%

-850.0%

-650.0%

-450.0%

-250.0%

-50.0%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

4Q12 4Q13 2012 2013

3.8%

0.6%

40.4 38.3

155.6 147.9

57.2%

48.9%

60.6%

53.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0.0

50.0

100.0

150.0

200.0

250.0

4Q12 4Q13 2012 2013

-5.3%

-5.0%

69.5 75.0

251.2 268.5

4Q12 4Q13 2012 2013

7.9%

6.9%

Adjusted EBITDA (R$ million) and Margin

Adjusted FFO (R$ million) and Margin

Net Revenue (R$ million) NOI (R$ million)

70.7 78.3

256.9275.8

4Q12 4Q13 2012 2013

Net Revenue (R$ million)

10.8%

7.4%

Financial Performance (51% PDP)

19 Data as of 4Q13

27.6 24.2

110.5 97.9

47.8%

37.9%

53.2%

43.8%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0.0

50.0

100.0

150.0

200.0

4Q12 4Q13 2012 2013

-12.3%

-11.4%

57.7 63.9

207.9 223.7

4Q12 4Q13 2012 2013

Net Revenue (R$ million)

10.7%

7.6%

44.7 44.0

154.9 157.8

77.5%68.8% 74.5% 70.5%

-98.0%

-48.0%

2.0%

52.0%

-20.0

30.0

80.0

130.0

180.0

230.0

280.0

4Q12 4Q13 2012 2013

Adjusted EBITDA(R$ million) and

Margin

1.8%

-1.7%

Adjusted EBITDA (R$ million) and Margin

Adjusted FFO (R$ million) and Margin

Net Revenue (R$ million) Net Income (R$ million)

28.1

74.6

185.5226.0

4Q12 4Q13 2012 2013

Net Income (R$ million)

21.8%

165.2%

Cash Position and Leverage

20

2.3x

Net Debt/EBITDA

Contracted Debt FinancingCommitted

Amount (R$ MM)

Term

(years)Interest Rate(1)

Balance as of

12/31/13

(R$ million)

Working Capital 20 5 CDI + 1.66% 8

Working Capital 27 6 CDI + 1.78% 14

Manauara Shopping 112 12 8.50% 120

Metrópole Shopping - Expansion I 53 8 TR + 9.30% 43

Uberlândia Shopping 81 15 TR + 9.70% 73

Boulevard Londrina Shopping 120 15 TR + 9.70% 118

Passeio das Águas Shopping 200 12 TR + 9.70% 197

Debentures - 1st series 96 5 CDI + 0.96% 98

Debentures - 2nd series(2)205 7 IPCA + 6.25% 236

Total 913 905

Weighted Average 10.2 10.4%

(1) Considering TR at 0.19% p.a., CDI at 9.8% p.a. and IPCA at 5.91% as of December 31, 2013

(2) The Company contracted in August 2013 a derivative instrument (swap) of R$ 54.5 million at a rate of CDI + 1.24%

Fixed13%

CDI13%

TR48%

IPCA26%

Debt Profile

828.6

480.2

76.1

424.4

Total Debt Cash and cash

equivalents

Net Debt

Net Financial Debt (R$ million)

Short Term

Long Term

904.7

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

76.1 65.7 109.0 105.2

170.7

377.9

2014 2015 2016 2017 2018 2019 and

beyond

Financial Debt Amortization (R$ million)

Does not include debt related to asset acquisitions

Data on 12/31/13

Leverage Strategy

Financing through bank loans up to 50% of the total cost for each project

Debt indexation linked to Sonae Sierra Brasil’s assets

Amortization schedule highly manageable

No exposure to foreign currencies

Management of cash and financial leverage indexes (restricted to 3.25 of Net Debt/ EBITDA in 2014)

21

Share Performance and Trading Multiples

22

Share Price Performance Trading Multiples

• Maximum: R$ 34.34 in October 2012

• The stock is trading below R$5,000/GLA

• Gross investments for Passeio das Águas Shopping ~ R$ 6,200/GLA

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

SSBR3 Price (R$)

Price

(R$)

Market Cap

(R$ MM)

EV (R$

MM)

P/FFO

14

EV/EBITDA

14 EV/GLA

BR Malls 17.96 8,209 12,516 12.3x 9.6x 13,172

Multiplan 46.10 8,212 10,064 14.6x 11.3x 18,854

Iguatemi 21.38 3,776 4,385 14.4x 10.7x 15,641

Aliansce 17.66 2,808 4,504 12.8x 11.0x 11,262

Average: 13.5x 10.7x 14,732

SSB 15.66 1,197 1,677 7.1x 6.0x 4,738

SSBR3 discount to peers: 47% 44% 68%

Price as of 02/28/14; EV and FFO estimates based on Bloomberg consensus

Source: Companies reports; Bloomberg

Index

23


9 Our Portfolio



22 Case Studies

Case Study – Parque D. Pedro Refurbishment and Innovation

24

Refurbishment of movie theater, adding 2 VIPs screens and the first IMAX theater in the region

Refurbishment of aisle currently dedicated to furniture stores and fitness center

Coverage of Alameda Parque D. Pedro (PDP first expansion) New dining area and new entrance

13,757 sqm area leased to a convention center operator

Even though Parque D. Pedro is one of the most prominent shopping centers in Brazil, we continue to refurbish and renovate the mall to perpetuate its dominant position in the region

Case Study – Boulevard Londrina New Development

Shopping Center Data

City Londrina

State Paraná

Opening May 2013

GLA (Ꞌ000 sqm) 48.4

SSB stake 88.6%

Number of stores 221

Anchor stores 10

Cinema screens 7

Parking spaces 2,400

Occupancy rate 88.6%

Boulevard Londrina Shopping has a privileged location, in the city‟s downtown and is part of an imposing mixed-use project

Boulevard Londrina Shopping gathers a tenant mix of diversified stores, with high appeal to the public

25

Case Study – Passeio das Águas New Development

Shopping Center Data

City Goiânia

State Goiás

Opening October 2013

GLA (Ꞌ000 sqm) 77.9

SSB stake 100%

Number of stores 259

Anchor stores 17

Cinema screens 7

Parking spaces 4,000

Occupancy rate 83.4%

Passeio das Águas Shopping is the second largest shopping of Sonae Sierra Brasil and the largest mall in Brazil‟s Mid-West region

Passeio das Águas Shopping has a diversified tenant mix, with renowned brands

26

Case Study – Franca Shopping Expansion

27

Site Location

Internal Rendering External Rendering

45,500 sqm area; 11,700 sqm of GLA of expansion

After announcing the acquisition of a 45,500 sqm land plot adjacent to the Franca Shopping aiming an expansion of 11,700 sqm of GLA, the Company officially launched the project in a ceremony that took place in Franca on March 18th, comprising the expansion above-mentioned plus a full revitalization in the existing mall.

Expansion Features

Opening 1H15

Expansion GLA (Ꞌ000 sqm) 11.7

Satellite stores 63

Anchor stores 6

Gross Investment (R$ MM) 96.7

Revitalization Features

Façade painting with “lake, garden and birds” elements and graphite decoration

Lake area will be covered and will have new stores

Movie theater: modernization and 2 new screens to be built-up

New ceiling and covering of open air areas for the air-conditioning system

New furniture and internal signs

Expansion and Revitalization

Case Study – Plaza Sul Value creation through M&A and turnaround

Shopping Center Highlights

SSB ownership increasing from 20% (2005 – acquisition) to 60% (2012)

Occupancy rate improvement: from 80% (2005) to 99% (2013)

Asset appreciation of 3.5x its purchase price (R$ 96 million) since 2005

Tenant Mix improvement with renowned tenants: Starbucks, Samsung, Lacoste, MyStore

Performance Highlights(1)

Sales (% Y-o-Y) 8.7%

SSR (sqm/month) 11.6%

Occupancy Rate (%GLA) 99.1%

(1) Data as at 4Q13

New Façade Old Façade

28

Index

29


9 Our Portfolio



22 Case Studies

Fast growing middle class

30

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

31

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, 40 greenfield projects were announced for 2014 in Brazil, which, if

concluded, should add more than 1.2 million sqm of GLA

Source: Abrasce (January 2014) 32

North • Malls: 5 • GLA: 159k sqm

Mid-West • Malls: 2 • GLA: 50k sqm

Northeast • Malls: 7 • GLA: 209k sqm

Southeast • Malls: 22 • GLA: 669k sqm

South • Malls: 4 • GLA: 93k sqm

Brazil • Malls: 40 • GLA: 1,180k sqm

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