30 11-2011 - 2011 Institutional Presentation

Institutional Presentation

November 2011

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

17 Growth Strategy

7 Market and Sector Fundamentals

23 Operational and Financial Indicators

Parque D. Pedro Shopping „s Food Court (Campinas)

3

+41.4%

Expansion / Greenfield

Announced GLA Growth (2010 – 2013)(1)

(„000 sqm)(2)

Owned GLA Growth (%)

+95.7% 190

+45.9% 114

+45.9% 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 (353k 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


11 Our Portfolio

17 Growth Strategy



Manauara Shopping (Manaus)

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

Retail Sales5.7%

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

IPCA

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

Selic

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

PIB (%)

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

342359

381

419

2008 2009 2010 2011e

Shopping Malls

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

70.178.8

89.5

109.1

13.7%14.0% 14.0%

15.4%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

40

60

80

100

120

140

160

2008 2009 2010 2011e

Sales (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

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

Up

pe

r c

las

s

Mid

dle

cla

ss

L

ow

er

cla

ss

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


11 Our Portfolio

17 Growth Strategy



Shopping Penha (São Paulo)

10

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: 389k 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

► Stores : 148


3. Penha Shopping

► São Paulo (SP)

► GLA (sqm): 29.6

► Stores : 196


4. Franca Shopping

► Franca (SP)

► GLA (sqm): 18.1

► Stores : 103


5. Tivoli Shopping

► Santa Barbara d'Oeste (SP)

► GLA (sqm): 22.1

► Stores : 146


6. Metrópole Shopping

► São Bernardo do Campo (SP)

► GLA (sqm): 25.1*

► Stores : 151


7 Pátio Brasil

► Cidade: Brasília (DF)

► GLA (sqm): 28.8

► Stores : 234


8. Plaza Sul Shopping

► São Paulo (SP)

► GLA (sqm): 23.0

► Stores : 217


9. Campo Limpo Shopping

► São Paulo (SP)

► GLA (sqm): 22.4

► Stores : 144


10. Manauara Shopping

► Manaus (AM)

► GLA (sqm): 46.8

► Stores : 232


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 * Including an area of 5,161 sqm, currently reserved for expansion of the shopping mall

Our portfolio is composed by 10 operating shopping malls, totaling 1,973 stores, 353 thousand sqm of total GLA

and 205 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 58% in its 10 operating properties. It will reach

70% 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 73.2%

Metrópole São Bernardo SP 25.1* 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 30.0%

Campo Limpo São Paulo SP 19.9 20.0%

Manauara Manaus AM 46.8 100.0% Weighted Average 58.2%

Uberlândia Uberlândia MG 45.3 100.0%

Londrina Londrina PR 47.8 84.5%(2)

Goiânia Goiânia GO 78.1 100.0% Weighted Average 70.3%

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

* Including an area of 5,161 sqm, currently reserved for expansion of the shopping mall

Ability to expand and

adapt to market trends

Control the management

services of 100% of the

malls

Strategic control of the malls

13

Case – Parque D. Pedro Shopping

Data on September 30, 2011

Parque D. Pedro Shopping

City Campinas

State SP

Opening March 2002

GLA (sqm) 121.1

SSB‟s stake 51%

Stores 402

Anchor stores 27

Cinema screens 15

Parking capacity 8,000 vehicles

Traffic (9M11) 14.4 million

Occupancy rate 94.9%

First shopping mall developed by the Company and one of the largest malls of Latin America,

is the symbol of Sonae Sierra Brasil’s strategy

14

Case – Manauara Shopping

Manauara Shopping

City Manaus

State AM

Opening April 2009

GLA (sqm) 46.8

SSB‟s stake 100%

Stores 232

Anchor stores 13

Cinema screens 10

Parking capacity 2,750 vehicles

Traffic (9M11) 8.3 million

Occupancy rate 99.0%

Opened in April 2009, Manaura Shopping has been registering a fast maturation process

consolidating itself as the dominating shopping mall of Manaus


15

Index

Shopping Plaza Sul‟s Food Court (São Paulo)

16


11 Our Portfolio

17 Growth Strategy



Secured Growth

Owned GLA growth (‘000 sqm)

+96%

Metrópole (I)

199

389

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

17

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 18

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

19

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


20

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 On-going

expansions

21

Shopping Campo Limpo‟s façade (São Paulo)

22

Index


11 Our Portfolio

17 Growth Strategy



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

Sales (R$ million)

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

Occupancy (% GLA)

884

949

853

928

3Q10 3Q11 9M10 9M11

SSS/sqm

7.3%8.7%

48

55

47

53

3Q10 3Q11 9M10 9M11

SSR/sqm

13.0% 12.4%

23

Operational and Financial Indicators

2443

88

122

3Q10 3Q11 9M10 9M11

FFO Ajustado

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

Receita líquida

18.7%

21.2%

33 41

100120

3Q10 3Q11 9M10 9M11

Adjusted EBITDA (R$ million)

22.9%

19.7%

41 52

124 150

3Q10 3Q11 9M10 9M11

NOI

21.0%

25.9%

24

25

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%

IPO Update

Stock performance since IPO vs Ibovespa

Performance – 02/02/11 to 10/31/11

SSBR3: + 15.0%

Ibovespa: - 12.5%

Since the IPO in February 2011, Sonae Sierra Brasil’s shares have had a solid performance

when compared to the Ibovespa

As a result of the

resources from the

IPO, SSB had a net

cash position of

R$108 million as of

September 30, 2011.

Broker Target Price (R$) Recommendation Last Update

Credit Suisse 31.501 Outperform 09/05/2011

Itaú BBA 33.802 Outperform 09/11/2011

JP Morgan 35.002 Overweight 06/10/2011

112 month period 212/31/2012

60

70

80

90

100

110

120

130

140

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

Sto

ck P

erf

orm

ance (Base 1

00)

SSBR3 Ibovespa

26

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

Documents

30 11-2011 - 2011 Institutional Presentation