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Brazilian MallsBenign Growth Outlook Combined with Defensive Features

June 18, 2013

Research Analysts

Guilherme Rocha55 11 [email protected]

Nicole Hirakawa55 11 [email protected]

Vanessa Quiroga52 55 [email protected]

DISCLOSURE APPENDIX CONTAINS ANALYST CERTIFICATIONS AND THE STATUS OF NON-US ANALYSTS. U.S. Disclosure: Credit Suisse does and seeks to dobusiness with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of thisreport. Investors should consider this report as only a single factor in making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATIONClient-Driven Solutio ns, Insights, and Access

In this report we analyze (i) impact of the shift in interest rates and inflation expectations in the malls shares,(ii) malls sales prospects in a scenario of potentially less buoyant overall retail sales, (iii) supply outlook ofnew malls (iv) malls operators development track-record and performance of the most recent inauguratedbatch of assets.

Malls shares have been under pressure since early 2013 when interest rates expectations startededging up, but investors should focus on real rates. Future changes in nominal rates could impactshares in the ST, but real rates are way more comparable to FFO yields. In other words, if nominal ratesmove up on the back of higher inflation expectations, the impact should be neutral for the shares. Moreover,if inflation expectations deteriorate we could see investors willing to jump back into the sector given mallsinflation hedging characteristics and more compelling FFO yields relative to the benchmark.

Malls shares offer a combination of defensiveness and inflation protection, which can provehandy if macro uncertainty remains. We like malls earnings foreseeability and inflation-adjusted rentalagreements (combined with underlying real assets), especially in light of recent BRL depreciation.

Unlike bond yields, malls FFOs tend to increase over time and growth potential continues to beinspiring, in our view. Despite the high correlation between malls shares and LT inflation bonds thiscomparison has its caveats: Bond yields remain flat until maturity, whereas malls FFO yield tend to grow.Malls FFO CAGR was 14-49% from 07-12 and we expect it to be 12-20% during the next five years.

Fundamentals remain supportive of future growth. Supply of new malls until 2014 should not harmsectors expansion plans and malls sales should continue to outperform overall retail sales, ultimatelyincreasing malls sales representativeness in total retail sales. Lastly, retail sales could pick-up during 2H13.

Future growth should be geared towards new malls development. We expect listed-players to outruncompetition. Our track-record analysis underscores our positive stance on Multiplan. We see the company

as the best positioned player to deliver on organic growth.Stock Selection: (i) Upgrading BR Malls to Outperform, (ii) resuming coverage of Multiplan with anOutperform rating and (iii) Downgrading Sonae Sierra and Aliansce to Neutral.


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Table of Contents

Coverage Summary 3

Brazilian Shopping Malls Overview 4Recap of Malls Shares Performance YTD 5Impact of Interest Rates Expectations in Malls Shares 6

Inflation-hedging Characteristics 7

Retail Sales Outlook 8Why we prefer to focus on IRRs? 11Why Malls Operators are More Defensive ? 4Stock Selection 4

Multiplan 13

BR Malls 14

Aliansce 15

Sonae Sierra 16

Future Growth Should Be Geared Towards Developments 17Solid Outlook Attracted New Entrants, But Listed Players Should OutrunCompetition 18Snapshot of New Developments Coming to the Market 19GLA penetration outlook post 2014 21

Development Track Record and Performance of Recently Opened Malls 22

Multiplan 23

BR Malls 24

Aliansce 25

Sonae Sierra 27

How Much GLA Growth We Have In Our Numbers? 29

CSe versus Consensus 3012M Fwd P/FFO 3124M Fwd P/FFO 32

Appendix: Household Consumption to Support Retail Sales 33Corporate Templates 34Disclosures 34


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Coverage Summary

Company Name

Ticker

Market Cap (R$ mn)

ADTV 20d (R$ mn)

Target Price (R$/share)

Current Price (R$/share)

Upside (%)

Rating

P/FFO 2014

P/FFO 2015

EV/Ebitda 2014

EV/Ebitda 2015

IRR (real and leveraged)

Multiplan Aliansce Sonae SierraBR Malls

MULT3 ALSC3 SSBR3BRML3

9,393 9,720 3,186 1,978

130.4 29.1 10.7 1.8

26.50 67.00 24.50 31.50

20.63 51.16 20.05 25.88

28.5% 30.0% 22.0% 22.0%

16.9x 17.1x 19.1x 13.8x

14.1x 15.3x 14.5x 11.8x

12.2x 13.4x 12.7x 10.5x

10.9x 12.2x 11.0 x 9.0x

8.0% 7.9% 7.6% 8.8%

OUTPERFORM OUTPERFORM NEUTRAL NEUTRAL


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FOTO

Brazilian Shopping Malls Overview

We remain optimistic about shopping malls longer-term story. Fundamentalsremain solid regardless of a potentially less vibrant outlook for overall retail in the short-term. Malls sales penetration in total retail sales climbed to 25% from 13% in the lastten years and we expect this trend to continue playing out. Shopping experience inmalls tend to be superior to street stores, especially in light of Brazils weather andsecurity conditions.

Growth should be m ainly geared towards new developments in the follo wingyears. We expect companies (especially the listed ones) to continue to be aggressiveon organic growth. Our coverage sample targets 16% IRR (real and unleveraged) forGreenfields and 14% IRR for expansions to existing assets (Brownfields), attractivereturn rates, in our view and higher that what we assume in our models.

M&A should continue to come, but will l ikely not abound as in the past, sincethe more obvious targets seem to have been already taken and competition for assetsgot stiffer. Nonetheless, the industry is still highly fragmented and we still see room forconsolidation; ten largest players account for c.30% of the total market and the top-fiveones for 25%.

Focusing on the short-term

Large portion of the recent move in real interest expectations seems already priced in.Since the beginning of 2013, the real rates implied in NTN-B 24 yields (after taxes)increased ~150bps. Meanwhile, mall stocks contracted significantly, bringing spreadsto previous levels, which are fairly above historical average in a scenario of still decentgrowth outlook for mall operators.

Retail sales should pick up when and if inflation starts easing (2H13 in our view). The

sharp increase in consumer inflation from 4Q12 to 1Q13 likely helped explain the lowergrowth in the retail in 1Q13. However, inflation is expected to drift lower over thecoming months, especially food inflation, potentially bringing some relief to retail salesalready in 3Q13.

Malls sales continue to be significantly more resilient than overall retail sales. Mallsaverage SSS figure was decent in 1Q13 at 7.5%, relatively flat qoq, despite themoderation seen in retail sales.


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Shares Poor Performance YTD Was Mainly Owing to Changes in Real Rates ExpectationsShares have been under pressure since early 2013, when interest rates expectations started shifting more meaningfully. Recent concerns over the economicoutlook did not help at all, but real rates explained most of the ~20% sell off seen in Malls shares. Real rates implied in the NTN-B 24 treasury bond (after taxes) climbed

~150bps since January to 4.1% (after taxes) and the decision of the Brazilian Monetary Policy Committee (Copom) to increase the Selic reference rate by 50bp in its last

meeting at the end of May caused malls shares suffer more.Correlation of mall operators shares with longer-term inflation-linked bonds is definitely high. Correlation of malls shares performance with real interest ratesimplied in NTN-B 24 is significantly higher than with nominal rates (DI). We estimate R to be 0.75 in the former versus 0.18 in the latter. This is mainly because malls lease

agreements are adjusted by inflation and properties tend to appreciate at least in tandem with inflation over time, making real rates way more comparable. Back in 2012, a

contraction in real rates was one of the main reasons behind the strong performance of shares, which ended the year up 30% and outperformed the Ibov by 44%.

Market consensus point to an additional 100bps increase in the basic interest rate until 2014YE. In our view, current expectations are already reflected in stockprices, although we continue to expect a volatile environment in the ST. Nonetheless, future changes in market participants perception about long-term inflation prospects

and tightening cycle (length and intensity) could continue to impact shares in both directions.

R = 0.75

-23.6%-19.8% -19.1% -18.5% -18.0%

-15.0% -14.8%

BRML3 SSBR3 .BVSP Malls ALSC3 MULT3 IGTA3

Source: Bloomberg, Credit Suisse Research. Prices as of June 14th.*Performance YTD

Nominal Rates Edged Up 110 bps Since Early May Moving Real Rates Expectations higher In The Same Proportion

And Causing Malls Shares To Underperform the Broader Index*8.0%

9.1%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

Jan-12 Apr-12 Aug-12 Nov-12 Mar-13 Jun-13

2.3%

2.8%

3.3%

3.8%

4.3%

4.8%

4,000

5,000

6,000

7,000

8,000

9,00010,000

Jan-12 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 May-13

Malls Perf. Index(LHS)

NTN-B 24 YTM(RHS)

Swap PRE-DI 360d


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Upward Movement In Real rates Seems Already Reflected Into the Shares

2Y FFO yieldSpread toNTNB 24

2.4%

Average

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Jan-10 Sep-10 May-11 Jan-12 Sep-12 May-13

ALSC

82BRML

76

IGTA

89

MULT

86SSBR

83

75

80

85

90

95

100

105

110

115

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

2.6%NTNB-24 After

Taxes

4.1%

5.0%Malls 2Y Fwd

FFO Yield

6.6%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

Jan-13 Feb-13 Mar-13 Apr-13 May-13

Source: Bloomberg, Credit Suisse Research. Prices as of June 14th.

Real Rates Expectations Have Been Oscillating Significantly.

Malls Price Action Has Been Weak Across The Board YTD

2Y FWD FFO Yields Expansion Offset Increase In Real Rates

We believe the change in real interest ra tes expectation s is priced in. Sincethe beginning of 2013 real rates implied in NTN-B 24 yields (after taxes) have

increased to 4.1% from 2.6% previously (~150bp difference). Meanwhile, malls

shares have fallen ~20% since January 2013, bringing 2Y FWD FFO yields to6.6% from 5.0% previously (160bp difference). As a result, we see the sector

yielding 240bp in excess of the real rates implied in NTN-B 24, in line with January

2013 level (when real rates reached their lowest mark) and only slightly below the

270bp seen in April 2013. It is worth flagging that the current spread of 240bps in

our sample is fairly above the historical average, in a scenario of a still-optimistic

growth outlook for malls operators. In addition, 2Y FWD FFO yields do not capture

growth expectations beyond 2014, which should be compelling.


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2.15

1.90

2.00

2.10

2.20

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

FX BRL x USD

Higher Rates Could Be a Headwind In ST, But Inflation-Hedging Could Prove Valuable

NTNB-24 (RHS)

4.1%Average

3.5%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Jan-12 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 May-13


Real Rates Expectations Have Been Oscillating Significantly .

.And So Has The Breakeven Inflation, Which ranged from 6.0% to 4.5%

Malls Inflation Hedging Could Be Increasingly Attractive In a Scenario ofBRL Depreciation

We reckon that higher nom inal rates could negatively impact malls sharesin the short term. Expectations about the basic interest rates have been volatileand we do not rule out additional increases, at least until inflation starts to curb.

Our economists expect annual inflation to start declining by July 2013 and staybelow 6% as of September 2013, but this should widely depend on the magnitude

of BRL depreciation relative to USD.

However, we believe investors should focus mainly on real rates. In otherwords, if nominal rates move up due to higher inflation expectations, the impact

should be neutral for the shares in the ST. In addition, if inflation expectations

deteriorate we could see investors willing to jump back into the sector given both

its inflation-hedging characteristic and more compelling FFO yields relative to the

benchmark.

Projections for both nominal rates and inflation have been bouncing forthe past few months. The uptick in real rates expectations since April causedmalls shares to look somewhat less compelling, but we believe this could change

quickly. Since 2012 real rates expectations have been oscillating between 4.6%

and 2.6%, a wide range in our view.

Malls shares could become more appealing if inflation pressures prove tobe stickier. If short-term inflation takes longer to abate, causing perception overlong-term inflation to move higher than the 5.2% implied in current breakeven

inflation, we believe malls shares should be perceived as a safer harbor for offering

a combination of real underlying assets and inflation-adjusted revenues.

We like malls inflation-hedging characteristics, especially in light of therecent BRL depreciation. We believe malls protection against inflation couldprove handy if a lower BRL brings additional inflation pressure. The Brazilian

currency has weakened over the past few weeks, depreciating ~5%relative to theUSD since May 26th. Meanwhile, governments willingness to intervene in FX

remains unclear.

5.2%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

Mar-12 Jun-12 Sep-12 Nov-12 Feb-13 May-13

Breakeveninflation


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Retail Sales

3.5%

Textiles,Apparel &Footwear

4.0%

-2%

0%

2%

4%

6%

8%

10%

12%

Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13

Will Retail Sales Cope?

Hering

Marisa

Renner

Restoque

Arezzo

Guararapes

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

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

Source: IBGE, Company Data.

1Q13 Was Not an Entirely Bad Quarter For Listed Retailers, 3 outof 6 Posted Expansion Versus 4Q12

Jan/Feb Presented a More Market Deceleration, Whereas MarchIndicated Some Recovery, Especially in Apparel and Footwear

Retail sales are expected to pick up when and if inflation starts easing. According to CS economists, the sharp increase in consumer inflation from 4Q12 to 1Q13helped explain the lower growth in the retail in 1Q13. However, inflation is expected to drift lower over the coming months, mainly the food inflation, potentially bringing

some relief to retail sales already in 3Q13, especially for stores targeting B and C income consumers, who were likely the most impacted by the inflationary pressures.

Outlook will likely be less buoyant than in recent years, but growth should remain relatively in line with 2012 figures. According to CS economics team, thestimulus for the labor and credit markets points to continued growth in household consumption in the coming years. Thus, rising income and credit expansion should

continue to drive retail sales.

Recovery in retail sales throughout 3Q13 should ease concerns about a potential slowdown in malls sales. In our view, more negative retail sales figures, alongwith higher interest rates, have weighed on malls shares, especially in light of the ongoing growth initiatives undertaken by players, which should result in several new malls

openings in the next few years. We believe concerns could have been exaggerated, considering recent data points and inflation outlook could start to improve in the coming

months.

Some listed retaile rs mana ged to post healthy figures in 1Q13. SSS of certain listed companies improved substantially in 1Q13 (3 of 6), as shown below.


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We Expect Malls Sales to Exceed Overall Retail In Following YearsMalls sales remained resilient in 1Q13 despite the moderation in retail sales in the quarter. Average SSS figures for malls were relatively flat at 7.5% qoq, whilegrowth in retail sales decelerated to 3.5% in qoq 1Q13 from 8.4% qoq in 4Q12. Even though the deceleration in retail sales was partially attributable to a lower number of

business days in 1Q13 (60) versus 1Q12 (63), the downward movement was somewhat substantial, indicating that other factors could have contributed.

We expect this trend (outperformance of m alls sales) to continue to play out. Malls have consistently outperformed overall retail sales and we expect this tocontinue going forward, as fundamentals remain strong, i.e. GLA penetration in Brazil is still relatively low in several regions and shopping experience is substantially better

at malls than street stores given Brazils weather and security conditions. Correlation between malls sales and retail sales in not negligible: We estimate R to be 0.6.

However, malls sales have been growing at a CAGR of 17.5% since 2006 compared with 10.7 % for retail sales.

Malls SSS vs Retail Sales Resilience Amidst the Cool Off In 1Q13

SSS Malls

7.5%

Retail

3.5%

Apparel

4.0%

-10%

-5%

0%

5%

10%

15%

20%

2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12

10.0%

16.0%

11.4%14.6%

23.0%

18.7%

10.6%

6.8%

13.6%9.9%

6.8%

12.2%

6.6%

8.4%

18% 18% 18%19%

21%

23%

25%

2006 2007 2008 2009 2010 2011 2012

Malls Sales Growth (% yoy)

Retail Sales Growth (% yoy)Malls penetration in Retail

Malls Sales vs Retail Sales, Malls Have ConsistentlyOutperformed Retail Driving Penetration Higher

Source: IBGE, Abrasce.


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Defensiveness Coupled With Still Benign Growth Outlook Could Command a Premium

Source: Company Data, Credit Suisse Research.

Overage7.7%

Temporaryrent and

Merchandising14.0%

Otherrevenues**

78.3%

BR Malls Aliansce

Multiplan* Sonae Sierra

Overage8.4% Temporary

rent andMerchandising

5.5%

Otherrevenues**

86%

Overage3.4%

Temporaryrent and

Merchandising5.6%

Otherrevenues**

91.1%

*Excluding revenues from real restate sales. **Other revenues = Minimum rent, Parking, key money

Overage4.1%

Temporaryrent and

Merchandising5.8%

Otherrevenues**

90.1%

EBITDA Grew at a 20%-47% CAGR in Last 5 Years and We Expect It ToGrow at 13%-19% CAGR From 12-17

While FFO Grew at a 14-49%CAGR in 2007-2012 and Should Grow by12% to 20% in the Next 5 years

20%

47% 45%

25%19%

13% 15% 13%

EBITDA CAGR 07-12

EBITDA CAGR 12-17

14%

42%

49%

23%19% 19% 20%

12%

FFO CAGR 07-12

FFO CAGR 12-17

Malls operators have high earnings predictability. The long-term feature of lease agreements, averaging five years for satellite and ten years for anchor stores,coupled with substantial penalties for early contract termination, tend to provide stability to malls revenue stream.

Rental revenues have a fixed nature and little connection with current sales volume. As such, temporary slowdowns in sales growth have a limited impact on mallsoperators top line. In our sample, only 6% of total revenues, on average, come from overage (sales-linked rent) and another 8% from temporary rents and merchandising.The largest portion of revenues comes from minimum rent, parking and key money.

Unlike bond yields, malls FFO tends to increase over time. We remind investors that despite the high correlation between malls shares and longer-term inflation-linked bonds, this comparison has its caveats: Bond yields remain flat until maturity, whereas malls FFO tends to grow over time owing to real rent increases, organic and

inorganic growth initiatives, and potential efficiency gains. As a reference, CAGR of malls FFO was 14%49% from 2007-2012.


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June 18, 2013

We expect our sample to grow at an EBITDA and FFO CAGR of 15% and 18%, on average, in 2013-2018. Most names do not look a bargain if we consider 2YFWD FFO yields of 6.6%, however this above historical averages. In our view, current valuations continue to be supported by companies interesting growth prospects.

Yet, in our view, only a couple of companies present a more balanced risk-reward profile in our view, namely BR Malls and Multiplan.

Capital structure diff erences are equaliz ed and growth perspectives are better reflected in IRRs. Current FFO yields can be distorted by different gearing levelsand do not incorporate growth beyond 2014, which we expect to be material. Our estimate of implied IRRs point to, on average, 390 bps spread to NTN-B compared with

240 bps for 2Y FWD FFO yield.

2Y FFO yield look s reasonable, whereas IRRs are significantly m ore compel ling. In some cases, such as BR Malls, the large gap between FFO yields and IRRs ismostly explained by higher leverage pressuring short-term FFO rather than by strong growth prospects, but for most of our sample the gap is explained by the still-positive

growth outlook, reinforced by companies recent equity issuances (FOs), which should be streamed to growth initiatives.

Leverage Weights on Short-Term FFO Yields, We Prefer to Focus on IRR

2Y FWD FFO yield Spread to NTN-B 24 IRR Spread to NTN-B IRR vs FFO yieldsNet Debt / EBITDA

LTM

BR Malls 6.4% 220bps 8.0% 389 bps 159 bps 3.6x

Multiplan 6.2% 195bps 7.9% 371 bps 189 bps 1.8x

Aliansce 6.0% 185bps 7.6% 345 bps 150 bps 4.7x

Sonae Sierra 7.8% 350bps 8.8% 467 bps 102 bps 1.8x

Average 6.6% 243bps 8.0% 393 bps 150 bps 3.0x

2Y FWD FFO Yields are Above Historical Average at 6%(c.16.5x P/FFO)

Malls Operators IRR - CSe

2Y FFO Yields Average 6.6%, Whereas IRRs are Hovering Around 8.0%

8.8%

8.0% 7.9%7.6%

24M Fwd FFO

Yield

6.6%Average

+STD

-STD

4%

5%

6%

7%

8%

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13



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June 18, 2013

Malls Shares Spread to NTN-B 24

1.9%

Average

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13

1.9%Average

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%


2.2%

Average

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%


3.5%

Average

0.0%

0.5%

1.0%

1.5%

2.0%2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13


Aliansce - 2Y Fwd FFO yield Spread to NTN-B 24Multiplan - 2Y Fwd FFO yield Spread to NTN-B 24

Sonae Sierra - 2Y Fwd FFO yield Spread to NTN-B 24BR Malls - 2Y Fwd FFO yield Spread to NTN-B 24


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Multiplan

BR MallsAliansce

Sonae10.0x

10.5x

11.0x

11.5x

12.0x

12.5x

13.0x

13.5x

14.0x

7% 9% 11% 13% 15%

EV/EBITD

A

14E

EBITDA CAGR 14-18

What Are Our Preferred Ideas in the Space?

But Growth Perspectives Are High, Multiplan Should Postthe Highest Growth in Our Sample


Multiplans FFO Yield Spread to NTN-B Is Close to Average

1.9%

Average

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%


All else equal, we favor the resilience of Multiplans premium assets in a volati le environment. Multiplan should trade at a premium to peers owing to its strongasset base. In our view, the company has the most homogeneous portfolio (with one of the best tenant mixes), comprised primarily by large assets (10 of 17 with more than

30K sqm and 8 with more than 45K sqm of GLA), and mixed-use projects (5 in total), which tend to boost malls traffic and thus, sales.

New greenfields announcement and EBITDA margin gains should be a catalyst for the shares. We believe the company has the ability to generate superior valueto its shareholders through organic growth. The R$ 600 million proceeds raised in the Follow-on offering should start being deployed in expansions and new malldevelopments in the short term, in our view. In addition, Multiplan will likely reap some gains from the recent asset base growth, helping dilute fixed costs and likely driving

margins higher. The successful ramp-up of recently inaugurated malls, which increased owned GLA by 25% in 4Q12 alone, should add to shares visibility and be an

additional driver of SSS starting in 4Q13.

Multiplan is the most defensive play and also the better positioned to deliver on organic growth considering its track-record. We are resuming coverageof Multiplan with an Outperform rating. The company offers the combination of a defensive portfolio with the highest EBITDA CAGR prospects in our sample, of 14% in

2014-2018, propelled primarily by a 56% owned GLA addition by 2018, resulting in GLA CAGR of 8% in 2013-2018 and some margin expansion, owing to its broader

asset base. We ascribe relatively more optimistic assumptions to Multiplan based on:1. Companys track-record of developing top-notch assets.

2. Proven execution capacity (15 malls delivered to date please refer to page 23 for more details on companys execution track record) and land bank of 619,000

sqm for potential real estate for sale, expansions and commercial towers.

3. Strong relationship with tenants, enhanced by its strong asset base.


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What Are Our Preferred Ideas in the Space? (continued)

Spread NTNB24 2.2%

Average

-1%

0%

1%

2%

3%

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

BR MallsSonae Sierra

Aliansce

Multiplan

0.0%

2.0%

4.0%

6.0%

8.0%

7.4% 7.6% 7.8% 8.0% 8.2% 8.4% 8.6% 8.8% 9.0%OwnedGLACAGR12-18

Implied IRR

IRR Onwed GLA growth 12 to 18 Owned GLA CAGR 12-18

BR Malls 8.0% 23% 3%

Sonae Sierra 8.8% 31% 5%

Aliansce 7.6% 36% 5%

Multiplan 7.9% 56% 8%

IRR versus Owned GLA CAGR: BR Malls Stands Out as the Highest IRR with the Most Conservative Growth Premises

Source: Company Data, Credit Suisse Research. Prices as of June 14th.

BR Malls 2Y FFO Yield Spread to NTN-B 24 High Relative to Historical Figures

Upgrading BR Malls to Outperform, the 24% sell-off YTD was overdone, creating an interesting entry-point. We see BR Malls trading at a 2Y FWD FFO yield of 6.4%,representing a 220 bps spread to NTN-B 24, but we remind investors that companys current gearing pressures short-term FFO, causing FFO yields to look lower relative to peers.

I. IRR looks particularly compelling a t 8% in real terms, representing c. 390 bps spread to long-term infla tion adjusted bonds.II . BR Malls relies less on future growth to deliver our IRR estimate. The company presents the highest implied IRR in our sample. Nonetheless, it depends significantly less ongrowth than peers to achieve those figures, given BR Malls superior profitability and current depressed level of shares.III. Modest growth em bedded into our num bers. We are incorporating limited GLA growth for BR Malls on top of the projects already announced. In aggregate, we expect BR

Malls to grow its owned GLA at a 3% CAGR in 2012-2018. Thus, acquisitions and new Greenfields announcements would be an upside to our numbers.

IV. Lower growth relative to peers could open room for hi gher dividends. BR Malls increased its payout ratio for the first time to c. 60% in 2012, we could see this numbergoing up if growth options prove to be scarcer.


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June 18, 2013


IRR Versus Owned GLA CAGR


Downgrading Aliansce to Neutral, on relative valuation grounds. Aliansce 2Y FWD FFO is yielding 190 bps in excess of NTN-B 24, compared with 280 bps for oursample (ex-Aliansce). Even though current gearing is weighting on Aliansce short-term FFO, we argue that implied IRR does not look as compelling relative to peers either,

despite of the strong growth assumptions embedded in our numbers (5.3% owned GLA CAGR until 2018). In addition, the performance of recent inaugurated malls, with

additional phases of the two more challenging ones yet to be opened in 2013 and 2014, adds risk to this investment case.Aliansce should continue to deliver strong SSS figures, but this is already incorporated into our numbers. Aliansce has one of the youngest portfolios in ourcoverage universe and this should continue to provide for double-digit SSS in the following quarters. New assets tend to post annual SSS between 10-18% during the first

five years of operations, driving consolidated figures up. We are reflecting the maturation process of those assets along with strong GLA growth into our numbers .

1.9%Average

0%

1%

2%

3%

4%

5%

6%


8.8%

8.0%7.9%

7.6%

IRR Does Not Look As Compelling Relative to Peers

Aliansce - 2Y Fwd FFO yield Spread to NTN-B 24

IRR Onwed GLA growth 12 to 18 Owned GLA CAGR 12-18

BR Malls 8.0% 23% 3%

Sonae Sierra 8.8% 31% 5%

Aliansce 7.6% 36% 5%

Multiplan 7.9% 56% 8%


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16

June 18, 2013



Sonae Sierra: 2Y FFO Yield Spread to NTN-B 24 Peaked Owing to Lower SSS and Concerns Over Most Recent Malls Delivered

Downgrade Sonae Sierra, discount to peers does not look wide enough to support and Outperform rating. In our view, Sonae Sierra should trade at a discount to peersgiven companys less resilient portfolio comprised by a majority of assets located in less central regions with more exposure to C and D classes. SSS have been lagging for the last

two quarters, despite companys relatively younger portfolio.

Performance of recent inaugurated malls does not add to the case. Uberlandia Shopping and Boulevard Londrina, which opening took place in 1Q12 and 2Q13 respectively,are facing significant competition from BR Malls assets, negatively impacting sales ramp up and occupancy rates. Please refer to page 27 for more details on those mallsperformance.

Future growth i s largely concentrated in one large project. Out of 31% growth in owned GLA incorporated into our numbers, roughly 80% will come from Passeio das Aguasmall with 78 thousand sqm GLA. While the mall is relatively well leased, 72% pre-letting rate in 1Q13, we see with some caution the fact that growth is largely concentrated in one

single project. The mall is going to account for c.20% of companys owned GLA after its conclusion, scheduled for 4Q13.

7.5%

6.1%

0%

2%

4%

6%

8%

10%

12%

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

Average Sonae Sierra

SSS Have Been Lagging Peers During the Last Two Quarterr

3.5%

Average

0%

1%

2%

3%

4%

5%

Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13

33143323

78

Current Own GLA Announced GLAIncrease

Not AnnouncedGLA Increase

Own GLA 2018E

31%

80% of growthcoming from

Passeio das Aguas

Sonae Sierra: GLA Growth Breakdown


17/38

June 18, 2013

FOTO

Future Growth Should Be Geared Towards Developments

Acquisitions continue to be an option, but cap rates will likely be lesscompelling than in the past. Especially as the private players tend to take longer toadjust to real rates compression/expansion. In our view, M&A should continue to come,but will likely not abound as in the past, since the more obvious targets seem to havebeen already taken and competition for assets gets stiffer. Nonetheless, the industry isstill highly fragmented with the ten largest players accounting for c.30%.

Thus, new developments should be the main source of future growth. Weexpect companies (especially the listed ones) to continue to be aggressive on organicgrowth, which should provide higher returns relative to acquisitions coupled with fairlymore risk. Our coverage sample targets 16% IRR (real and unleveraged) forGreenfields and 14% IRR for expansions of existing assets (Brownfields).

New malls supply should not harm sectors future grow. Our analysis indicateGLA penetration should remains relatively low even after 2014. In addition, futuresupply targets cities with lower GLA occurrence, 60% of the pipeline located in citieswith less than 100 sqm per 000 inhabitants. Only a few cities could potentially have ahigh GLA incidence versus disposable income per GLA and could present a moredifficult competitive environment.

Investors should be more willing to pay for future growth in companies withmore proved track-record. Over the next pages, we aim to assess our companiessample track-record and the extent to which recently opened malls have metexpectations.


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18

June 18, 2013

Solid Outlook Attracted New Entrants, But Listed Players Should Outrun Competition

Competi tion increased as several new players entered the mark et and existing ones stepped up investmen ts betting on sectors positive fundamentals.However, we expect listed players to outperform, as relationship with tenants and know-how are key success factors. Ultimately, this round of investments coming from

new entrants could result in potential for consolidation in the future, in our view.

Listed players are well positioned to continue to capture future growth opportunities:

1. Companies are well capitalized following the last round of Follow-ons and should continue to have better access to other sources of capital relative to private players

and especially new entrants.

2. We expect listed players to leverage from their relationship with tenants and strong current asset base to achieve a better tenant-mix in new Greenfields

3. Professionalized structure should assure more disciplined decisions regarding expansions/new projects relative to private competitors. Thus, we see little likelihood

of companies putting money to work in value destroying new developments. History shows that even new assets with bottom of range performance could be able to

deliver IRRs above 10% (according to companies estimates).

*Savoy we used total GLA instead of owned


Brazilian Malls Market Share in Owned GLA (2012)

8%6%

5%2%3%3%2%1%1%

1%0.3%68%

BR Malls

Savoy*

Multiplan

Iguatemi

Aliansce

Sonae Sierra

General Shopping

Brookfield Shoppings

HSI - Saphyr

CCP

Tenco

Others


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19

June 18, 2013

Snapshot of Malls New Developments Coming to the MarketBrazil had 461 malls in May 13 (equivalent to 11.4 million sqm of GLA) and growth should be substantial until 2014. There are currently 76 malls underdevelopment, amounting to 2.2 million sqm of GLA. Following the conclusion of those projects, the number of malls and total GLA in Brazil would increase by 16% and

20% until 2014YE.

We do not rule out the delay/po stponemen t of som e projects, as has it has been the case in previous years. As we have seen in the past couple of years, mallsprojects conclusions have been much lower than initial expectations. In 2012, actual GLA supply was 43% lower than what the market was expecting.

25% of new supply of GLA will be in cities with currently no mal l and 60% in cities where GLA per capita is below 100 sqm. New projects are concentrated incities with low GLA per 000 inhabitants ratios, indicating malls are being built in regions other than the traditional ones.

Source: Abrasce, Credit Suisse Research. Prices as of June 14th.

795

472

Expected NewSuppy GLA

Actual NewSupply GLA

1,441

820

Expected NewSuppy GLA

Actual NewSupply GLA

Actual new GLA supply was in reality much lower than the initiallyexpected

581

259

469539

306

61

0 0 - 50 50 - 100 100 - 150 150 - 200 250+

GLA per 000' inhabitants

North, 0.2

Northeast, 0.4

Mid West, 0.2Southeast,

1.2

South, 0.2

60% of new supply targets cities with less than 100 sqm 000

inhabitants ratio

Breakdown by Region (in thousand sqm)

2011 2012

-43.1%-40.6%


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20

June 18, 2013

Only a Few Cities will potentially have high GLA per capita vs. disposable income per GLA


140

190

240

290

340

390

440

GLA/'000inhabitants

5,000 10,000 15,000 20,000 25,000 30,000Disposable Income per sqm of GLA

Londrina

So Jose - SCBarueri

Maringa

Itu

Jandira Resende

Ribeirao Preto

Vila Velha

Betim

Lages

Campinas

So Jos do Rio Preto

Porto AlegreSo Jos dos Campos

Palmas

Dourados

Limeira

Petrolina

Cabo Frio

Florianopolis

Belo Horizonte

CuritibaRio deJaneiro

Taubate

Vitria

Praia Grande

Goinia

Caruaru

20,00015,000

Barretos

Osasco

Uberlndia

Trs Lagoas

Balneario Camboriu

Santo AndrBlumenau

CaraguatatubaJundiai

So Paulo

Ponta Grossa

Valparaisode Goias

Campo Grande Cuiaba

PousoAlegre

Indaiatuba

Piracicaba

Fortaleza

Nova

Friburgo

NatalJoo Pessoa

Salvador

Cascavl Recife

NovoHamburgo

UberabaAracaju

Aracatuba

PresidentePrudente

So Caetano Do Sul

Votorantim + Sorocaba

Paragominas

2014 Figures Cities with GLA incidence above 50 sqm per 000


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21

June 18, 2013

GLA Penetration Remains Reasonable After 2014Brazil has currently 40 cities with more than 150 sqm of GLA per 000 inhabitants and only 20 with above 200 sqm of GLA. In most cases, the higher GLA density isaccompanied by a concentration of disposable income, indicating that cities with a high occurrence of GLA are among the wealthiest ones in terms of disposable income per GLA.

After 2014, 61 cities will have more than 150 sqm per GLA and 28 more than 200 sqm. Within this universe of cities with GLA occurrence above 150 sqm in 2014, onlyabout nine cities screen as potentially having high GLA occurrence vs. disposable income per GLA. (i.e. Londrina, Barueri, Ribeiro Preto, Vila Velha, Lages, Maringa, Betim andSao Jose SC)

GLA per thousand inhabitant ratio should continue below o ther countries figures after the 2014. Penetration in Brazil is currently of 59 sqm per 000people and should goup to 69 sqm, assuming the entire pipeline of projects is delivered. GLA occurrence, excluding the cities with total population lower than 50k inhabitants is currently 88 and would

increase to 101 sqm in 2014.

Source: ICSC, Credit Suisse Research, IBGE and Abrasce

360

220

180

110

8859

South Africa* France* Germany* Mexico* Brazil - cities> 50k inhab

Brazil - Total

360

220

180

110101

69

South Africa* France* Germany* Mexico* Brazil - cities> 50k inhab

Brazil - Total

GLA Penetration sqm per 000 inhabitants May 2013

* 2011 figures

GLA Penetration sqm per 000 inhabitants 2014YE


22/38

22

June 18, 2013

Development Track Record and Performance of Recently Opened MallsWe believe investors should be more willing to pay for future growth in companies with more proved track-record. In this report, we assess listed companies track-

record and mainly the extent to which recently opened malls are meeting expectations.

Our conclusion is supportive of our positive stance on Multiplans growth story. Multiplan and Aliansce stand out as having the most solid track recordwhen it comes to new developments, but Multiplan outranked Aliansce when looking at the performance of recently opened malls, maintaining its tradition ofdeveloping superior assets.

* If we were to consider Via Brasil and Londrina (acquired turn key during construction) the total would 8. ** Includes Boulevard Londrina inaugurated in 2Q13.


Development History Table

Track record (CS view)

N of Developed Greenfields 6* 15

N of Developed Greenfields since IPO 6* 6

Number Developed Expansions 10 42

GLA Developed 266,196 641,700

Owned GLA Developed 168,477 491,400

% of Total Assets 12% 88%

% of Owned GLA 18% 94%

So Bernardo do Campo

Independencia Shopping

Sete Lagoas

Granja Vianna

Mooca Plaza

Estao BH

6**

2**

5

310,000

225,000

67%

83%

Londrina

Parque Dom Pedro

Boa Vista

Campo Limpo

Manauara

Uberlandia

Shopping Anlia Franco

DiamondMallNew York City Center

BHShopping

RibeiroShopping

BarraShopping

MorumbiShopping

ParkShopping

ParkShoppingCampoGrande VillageMall

ParkShoppingBarigi

BarraShoppingSul

Shopping Vila Olmpia

ParkShoppingSoCaetano

JudiaShopping

10

5

16

366,740

256,696

61%

64%

Bangu Shopping

Santana Parque Shopping

Caxias Shopping

Boulevard Braslia

Boulevard Belm

Boulevard Belo Horizonte

Boulevard Campos

Parque Shopping Belm

Boulevard Vila Velha

Boulevard Naes BauruList of Malls


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23

June 18, 2013

Multiplan Recent Projects Are on Their Way to Beat 1st Year NOI Expectations

OccupancyRate at Opening

Opening Date GLA IRR estimate

Projected Actual Projected Actual At Launch Current

Parque Sao Caetano 96% 4Q11 4Q11 38,900 39,274 24% n.a.Jundiai Shopping 95% 4Q12* 4Q12 34,575 34,501 18% 16.4%

Park Campo Grande 96% 4Q12 4Q12 40,743 42,355 21% 21.8%

Village Mall 89% 2Q12 4Q12 25,653 25,235 16% 13.0%

* project was announced in 2008 and then delayed and re-announced in 2010**revenues from 1Q12 right after the mall opening

Very good occupancy rates coupled with timely delivery of the projects. Multiplan malls inaugurated on average with a 94% occupancy rate and opening datespresent roughly no deviation from forecasted. Company estimated IRR for recent projects changed more meaningfully only for Village Mall.

1Q13

Monthly Salesper sqm

Rent & ParkingRevenues 1Q13

Rent & ParkingRev. per m/month

1 year NOI(R$ mn) Cse

1 year NOI(Expected vs Cse)

Net Capex(R$mn)

1 yearCap rate (Cse)

Parque Sao Caetano 877 9.9** 84 36.4 4% 223 16.3%

Jundiai Shopping 686 7.5 73 27.9 37% 293 9.5%

Park Campo Grande 630 8.5 74 31.4 61% 258 13.5%

Village Mall 1141 7.3 97 27.1 -27% 456 5.9%

Source: Company Data, Credit Suisse Research

As per our estimate, Multiplan seems on track to beat first-year NOI expectations for the malls opened in 2012. We calculated the first-year NOI of Multiplanmalls by annualizing their reported 1Q13 rent and parking revenues. Of note, NOIs for Multiplan assets do not include key money revenues, as is the case for Aliansce and

BR Malls. The malls Jundiai and Campo Grande seem to be on their way to significantly beat companys initial expectations, whereas Village Mall seems to be falling short

of projections, but the company is guiding for an increase in occupancy already in 2Q13. Additionally, even though we do not have NOI broken down by mall, Parque So

Caetano (inaugurated at the end of 2011) seems to have surpassed initial expectations. Sales per sqm for the assets also appear to be solid, averaging R$835 per sqm per

month in 1Q13, not too far from the R$1,300 average of the entire portfolio in the quarter, especially considering that malls sales tend to grow significantly during the five-

year maturation process.


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24

June 18, 2013

BR Malls' Assets, Granja Viana, Mooca Plaza, and Estao BH Seem to Be Doing WellWe have more limited information available to evaluate BR Malls Greenfield performance as the company discloses detailed information for its main assets and only a few

greenfields made the cut and not necessarily in every quarter.

BR Malls growth strategy has been widely focused on inorganic growth. Since 2007 the company acquired 40 assets and increased its stake in 35 already ownedmalls, adding the equivalent to 653 thousand sqm in owned GLA in the process. To date, BR Malls developed 18% of its current asset portfolio, based on owned GLA.

First-year cap rates (for the malls we were able to analyze) look strong. Based on reported NOI for Granja Vianna and Mooca Plaza, 1 year cap rates were 20%and 17% respectively. In addition, annualizing the NOI from the first 6-months of operations (4Q12 and 1Q13) for Estao BH by attributing a 51% weight for these

quarters in full-year numbers, we arrived at a 21% first-year cap rate. However, we were unable to find data on Sete Lagoas, So Bernardo, and Londrina (the last two

were inaugurated quite recently).

Occupancy Rateat Opening

Opening Date GLA

Projected Actual Projected Actual

Sete Lagoas 100% 1H11 4Q10 16,162 16,431

Granja Vianna 97% 1H11 4Q10 29,700 29,892

Mooca Plaza 100% 1H12 4Q11 38,307 41,964

Estao BH 97% 2H12 2Q12 35,146 33,982

So Bernardo 99% 4Q12 4Q12 41,795 42,880

Londrina Norte 92% 4Q12 4Q12 32,601 32,992

Opening Date 1 year NOI (R$ mn) Reported Gross Capex 1 year Cap rate

Granja Vianna 4Q10 26,522 132,300 20%

Mooca Plaza 4Q11 30,005 174,500 17%

Estao BH* 2Q12 30,307 143,700 21%


Timely Delivery Coupled with Good Occupancy Rates at Opening, Average of 98%

First-year Cap Rates (including key money) Seem solid


25/38

25

June 18, 2013

Aliansce Recently Inaugurated Malls Had Some ShortcomingsEven though we recognize managements deep sector knowledge, the 2012 projects batch was not great and ramp-up could take longer than expected.The set of projects delivered in 2012 had lower-than-expected demand for leasing space, leading to suboptimal occupancy at start. Two of the three malls inaugurated in

2012 faced tougher competition, causing Aliansce to parcel the opening in phases to increase occupancy.

Total GLA of Boulevard Bauru and Boulevard Vila Velha was reduced by 20% and 29%, respectively. The second phases are expected to be inaugurated in 4Q13and the opening date of the third phase of Vila Velha is not defined yet. We expect the market to closely monitor their performance.

On the other hand, Parque Shopping Belems opened with a high occupancy rate and companys IRR forecast for the project is unchanged thus far.


Stake Owned GLAOpening

Occupancy at opening Occupancy in 1Q13Projected Actual

Boulevard Bauru 75% 19,907 4Q12 4Q12 92% 94%

Boulevard Vila Velha 50% 15,412 4Q12 4Q12 88% 91%

Parque Shopping Belm 50% 15,660 2Q12 2Q12 97% 97%

1Q13

Total Revenues Rent revenues perm/month

Total revenues perm/month

1 year NOI (R$mn) Cse

1 year NOI(Expected vs Cse)

Net Capex 1 year Cap rate

Boulevard Bauru* 2,879 32 48 14.2 -5% 112 7.6%

Boulevard Vila Velha* 1,155 23 25 8.5 -31% 89 3.4%

Parque Shopping Belm 2,610 42 56 19.3 43% 92.7 10.4%

Tougher Competition Caused Aliansce to Parcel Two Assets in Phases To Boost Initial Occupancy Rate

As per our estimate, only Parque Belm is on track to deliver a solid first-year cap rate. We calculated the first-year NOI of Aliansces malls by annualizing the reported

1Q13 revenues per mall, attributing a 23% weight in full-year revenues and setting NOI margin at 85% in the first year. As a result, Bauru and, especially, Vila Velha

numbers look fairly low. The rule of thumb is that first-year cap rate should be 10% 12%. Nonetheless, it is worth noting that this could be partially attributed to allowances

given to tenants in order to boost pre-letting rate and this number could go higher after they expire.

Our Estimate Point to Fairly Low First-year Cap Rates for Bauru and Vila Velha


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26

June 18, 2013

But the Batch Prior to 2012 Exceed ExpectationsAliansces expectations for the IRR of 2012 projects are still optimistic. Even after the shortcomings encountered by Vila Velha and Bauru, the company is guiding IRRs of

14% and 15% (real and unlevered) for the projects, which should also depend on the performance of the phases that are still to be inaugurated. Of note, the opening of

the third phase of Boulevard Vila Velha depends on an improvement in market dynamics in the region.

In addition, it is fair to mention that the majority of projects delivered in 2007-2010 have exceed companys expectations (for the ones we have data). The seven projects

analyzed were delivered on time, and four out of five with more than 3 years from the opening have beat companys initial estimates for third-year cap rate. The same appliesfor the expected IRRs, which were revised upward in most of the cases.

IRR Announced IRR Revised

Boulvard Bauru 16% 15% 70 bps

Boulevard Vila Velha 16% 14% 250 bps

Parque Shopping Belm 17% 17% 0 bps

Phase 1 Phase 2 Phase 3 Total

Boulevard Bauru 26,543 7,375 33,918

Boulevard Vila Velha 30,824 2,767 9,233 42,824

Opening dates 4Q12 4Q13 To be defined

Boulevard Bauru and Vila Velha Phases Opening ScheduleIRR Expectations at the Announcement Versus Current

Key Metrics of the Seven Projects Delivered Between 2007 and 2010

Initial StakeOccupancy

Rate atOpening

Opening Date GLA IRR estimate Cap Rate 3rd year

Projected Actual Projected Actual At Launch Current At Launch Current

Bangu Shopping 70% 99% 4Q07 4Q07 45,262 43,975 16.4% 20.1% 14.1% 15.9%

Santana Parque Shopping 50% 97% 4Q07 3Q07 25,424 26,526 15.2% 17.8% 13.6% 15.4%

Caxias Shopping 40% 96% 4Q08 4Q08 25,677 25,601 n.a. 18.9% 10.5% 13.3%

Boulevard Brasilia 50% 71% 3Q09 3Q09 16,925 16,925 16.8% 14.6% 10.2% 9.3%

Boulevard Belm 75% 90% 4Q09 4Q09 26,803 34,117 14.2% 23.9% 12.5% 21.1%

Boulevard Belo Horizonte 70.0% 90.0% 4Q10 4Q10 n.a. 43,064 15.0% n.a. 9.1% n.a.

Boulevard Campos 50.0% 96.0% 2Q11 2Q11 19,000 19,000 16.0% n.a. 12.9% n.a.



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27

June 18, 2013

Sonae Sierra: Challenging Outlook for Recently Opened Malls Sonae Sierra does not provide revenues/NOI per mall nor expected returns for

its greenfields. Thus, we focus on analyzing more qualitative aspects of the two

malls opened during 2012-13, namely Uberlandia and Londrina.

Uberlandia Shopping faced significant competition coming from CenterShopping Uberlandia from BR Malls, which is located in an arguably morecentral region. Competitive environment has being causing sales volume to

growth below initial expectations, Uberlandias second year of sales is

significantly below Sonae Sierras Portfolio. Of note, the company expects the

opening of a Zara store in 2Q13 to spur traffic, positively impacting sales

onwards.

StakeOccupancy Rate at

Opening

Opening Date GLA

Projected Actual Projected Actual

Boulevard Londrina 84.5% 88% 2H12 2Q13 47,800 47,800

Uberlandia Shopping 100% 93% 2H11 1Q12 43,600 45,300

Gross Capex (R$ mn) in Capex Sales 1Q13 (R$mn) Sales per sqm per month

Projected Actual

Boulevard Londrina 250 320 28% - -

Uberlandia Shopping 190 201 6% 54.5 396.5

Sona Sierra Assets Monthly Sales per sqm 1Q13

Boavista Shopping 1,243

Shopping Plaza Sul 1,210

Manauara Shopping 1,156

Shopping Campo Limpo 998

Shopping Metrpole 859

Parque D. Pedro Shopping 804

Franca Shopping 779

Uberlndia Shopping 397

Average per sqm 865


Boulevard Londrina is also competing head-to-head with anot her asset from BR Malls. Boulevard Londrina pre-letting process was impacted by Londrina Norte,inauguration two quarters earlier. Sonae Sierra has granted higher discounts (20-30%) for the first year of leasing in order to attract more tenants. We usually prefer not to

focus too much on projected vs. actual Capex figures, once it is difficult to determine the reasons behind the construction cost increase (i.e. upgrades to the original projects

or actual overruns). However, in the case of Boulevard Londrina, the c.30% higher cost relative to initial budget refers to an actual construction cost overrun, which shouldhave negatively impacted returns for this asset.

J 18 2013


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28

June 18, 2013

How Much GLA Growth We Have In Our Numbers?We expect our covered companies to grow Owned GLA on average by 36% until 2018, resulting in an average annual CAGR of 5%. Out of the 36% growth, we expect

65% to come from already announced projects and 35% from Greenfields and Brownfields to be announced in the coming years.


9351,147

162 50


Not Announced GLAIncrease

Own GLA 2018E

401547

105

41



Own GLA 2018E

529825

110 186



Own GLA 2018E

331433

101



Own GLA 2018E

23%

36%

31%56%

17%5%

26%16%

21%35%

31%

Owned GLA Growth CAGR of 5% until 2018

Owned GLA Growth CAGR of 8% until 2018 Owned GLA Growth CAGR of 5% until 18

Owned GLA Growth CAGR of 3% until 2018

J 18 2013


29/38

29

June 18, 2013

CSe versus Consensus

Ebitda 2013e(R$ million)





Ebitda 2014e Ebitda 2014e Ebitda 2014eEbitda 2014e

CSe Consensus

CSe Consensus

839 868

685720

CSe Consensus

1,0251,117

CSe Consensus

1,1861,313

CSe Consensus

CSe Consensus

420 432

331355

CSe Consensus

CSe Consensus

220252

290

348

June 18 2013


30/38

30

June 18, 2013

12M Fwd P/FFO


22.4x

10

15

20

25

30

35

Jan-10 Jul-10 Jan-11 Jul-11 Dec-11 Jun-12 Dec-12 Jun-13

Average

18.8x

0

5

10

15

20

25

30

35

Jan-08 Nov-08 Oct-09 Sep-10 Aug-11 Jul-12 May-13

Average

19.3x

5

10

15

20

25

30


Average

16.2x

12

14

16

18

20

22

24

26

Feb-11 Jul-11 Jan-12 Jun-12 Dec-12 May-13

Average

June 18 2013


31/38

31

June 18, 2013

24M Fwd P/FFO


16.5x

8

10

12

14

16

18

2022

24

Jan-10 Jul-10 Jan-11 Jul-11 Dec-11 Jun-12 Dec-12 Jun-13

Average

15.5x

0

5

10

15

20

25


Average

16.2x

5

10

15

20

25


Average

12.8x12

14

16

18

20

22

Feb-11 Jul-11 Jan-12 Jun-12 Dec-12 May-13

Average

June 18 2013


32/38

32

June 18, 2013

11

14

23

24

29

29

38

43

Mexico

Russia

South Korea

Portugal

Greece

Spain

United Kingdom

United States

Assuming real growth inconsumption per capita

of 3.9% p.a. from 2004 to2011 and no change in

parity between FX rates.

3 Using the 2011 level as reference.

Appendix: Household Consumption to Support Retail SalesContinued expansion in household consumption should support retail sales. Despite its increase in recent years, household consumption is still lowcompared with other developed or even emerging economies. Assuming Brazils average growth in per capita household consumption in the next few years

remains close to recent average of 3.9%, to reach Mexicos level Brazil would take more than 11 years.


Number of years need for Brazil to reach the current level ofconsumption per capita of other countries

Household consumption per capita in Brazil1

(% of household consumption of other countries)

10

20

25

30

35

40

45

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

15 Peripheral Europe Japan, Australia, and New ZealandSouth Korea2

Developed countries USA and CanadaCentral Europe

2 Emerging countries with highest levels of household consumption per capita.

1 Measured in US dollars, converted by purchasing power parity, at 2005 prices.

June 18, 2013


33/38

33

J ,

BR Malls Corporate Profile

Source: Credit Suisse Research

FINANCIAL METRICS (R$ mn)

Net revenues

Gross Profit

Gross margin

EBIT

EBIT margin

EBITDA

EBITDA margin

Adj. EBITDA

Net financial expenses

Taxes

Reported Net income

Net margin

# shares ('000)EPS (R$)

NOPAT (before &A)

Depreciation

Amortization

FCFE

Dividends

Total assets

Cash

Debt

PP&E

Net debt

Book value

Invested capital

Market cap.

EV

2011A

841

777

92.5%

663

79%

673

80%

673

(306)

(79)

471

56%

4391.1

594

0

10

134

49

13,937

452

3,672

12,594

3,220

6,624

10,499

9,393

12,613

2012A

1,091

1,027

94.1%

862

79%

875

80%

875

(434)

(1,050)

1,742

160%

4533.8

(175)

0

13

332

216

17,527

784

5,009

15,409

4,224

8,189

13,244

9,393

13,617

2013E

1,279

1,204

94.2%

1,015

79%

1,026

80%

1,026

(411)

(120)

431

34%

4550.9

906

0

10

(148)

212

17,726

637

4,858

15,714

4,221

8,433

13,547

9,393

13,614

2014E

1,460

1,375

94.2%

1,183

81%

1,186

81%

1,186

(424)

(144)

565

39%

4551.2

1,042

0

3

239

256

18,427

876

5,108

16,098

4,232

8,742

13,920

9,393

13,625

2015E

1,638

1,542

94.1%

1,346

82%

1,346

82%

1,346

(432)

(174)

681

42%

4551.5

1,172

0

0

264

306

19,269

1,140

5,420

16,581

4,280

9,117

14,401

9,393

13,673

2016E

1,805

1,699

94.1%

1,483

82%

1,483

82%

1,483

(428)

(201)

786

44%

4551.7

1,283

0

0

379

393

19,994

1,519

5,596

16,836

4,077

9,510

14,660

9,393

13,470

OPERATING METRICS

GLA(YE)

GLA (AVERAGE)

FFO

FFO margin

NOI (comparable calc.)

NOI per sq. meter

EBITDA per sq. meter

LEVERAGE

Net debt / Equity

Net debt / Ebitda

Net debt / Total assets

Capex / Operat.Cash Flow

Total Assets / Equity

RETURN / YIELD

ROIC

WACC

Cost of Equity (ke)

ROE

FFO Yield

Dividend Yield

VALUATION

EV / Adj. EBITDA

P/FFO

P/E

P/BV

2011A

798

715

312

37%

766

1,072

941

2011A

49%

4.8x

0.2x

n.a.

2.1x

2011A

6.4%

-

9.3%

4.7%

3.3%

1%

2011A

18.8x

30.1x

19.2x

2.1x

2012A

935

860

366

34%

1,029

1,196

1,017

2012A

52%

4.8x

0.2x

0.0x

2.1x

2012A

6.6%

-

9.3%

4.5%

3.9%

2%

2012A

15.6x

25.7x

5.4x

1.3x

2013E

945

941

470

37%

1,209

1,284

1,090

2013E

50%

4.1x

0.2x

0.0x

2.1x

2013E

7.6%

-

9.3%

5.6%

5.0%

2%

2013E

13.3x

20.7x

22.6x

1.1x

2014E

1,048

1,025

568

39%

1,380

1,347

1,157

2014E

48%

3.6x

0.2x

0.0x

2.1x

2014E

8.5%

-

9.3%

6.5%

6.1%

3%

2014E

11.5x

16.9x

17.0x

1.1x

2015E

1,115

1,073

681

42%

1,548

1,443

1,255

2015E

47%

3.2x

0.2x

0.0x

2.1x

2015E

9.3%

-

9.3%

7.5%

7.2%

3%

2015E

10.2x

14.1x

14.1x

1.0x

2016E

1,140

1,122

786

44%

1,705

1,519

1,321

2016E

43%

2.7x

0.2x

0.0x

2.1x

2016E

10.1%

-

9.3%

8.3%

8.4%

4%

2016E

9.1x

11.7x

11.7x

1.0x

June 18, 2013


34/38

34

,

Multiplan Corporate ProfileFINANCIAL METRICS (R$ mn)

Net revenues

Gross Profit

Gross margin

EBIT

EBIT margin

EBITDA

EBITDA margin

Adj. EBITDA


Taxes

Reported Net income

Net margin

# shares ('000)

EPS (R$)

NOPAT (before &A)

Depreciation

Amortization

FCFE

Dividends

Total assets

Cash

Debt

PP&E

Net debt

Book value

Invested capital

Market cap.

EV

2011A

632

513

81.2%

391

62%

451

71%

451

32

(118)

298

47%

179

1.7

334

60

0

(236)

149

4,752

558

1,002

3,008

444

3,089

3,745

9,720

10,164

2012A

759

609

80.3%

454

60%

528

70%

528

(42)

(110)

305

40%

179

1.7

418

75

0

(167)

185

5,664

391

1,885

3,953

1,494

3,206

4,806

9,720

11,214

2013E

945

733

77.6%

572

61%

681

72%

681

(111)

(103)

360

38%

187

1.9

578

109

0

325

232

6,654

717

2,081

4,503

1,364

3,960

5,431

9,720

11,085

2014E

1,146

893

77.9%

709

835

835

(118)

(118)

473

190

2.5

717

126

0

107

251

7,299

824

2,400

5,015

1,577

4,191

5,875

9,720

11,297

2015E

1,284

995

77.5%

792

62%

944

73%

944

(155)

(128)

510

40%

190

2.7

816

152

0

80

255

8,076

904

2,839

5,741

1,935

4,455

6,497

9,720

11,655

2016E

1,505

1,179

78.3%

959

64%

1,135

75%

1,135

(172)

(170)

616

41%

190

3.2

965

176

0

326

316

8,617

1,230

3,030

5,946

1,800

4,764

6,671

9,720

11,520

OPERATING METRICS

GLA(YE)

GLA (AVERAGE)

FFO

FFO margin


NOI per sq. meter


LEVERAGE

Net debt / Equity

Net debt / Ebitda




RETURN / YIELD

ROIC

WACC

Cost of Equity (ke)

ROE

FFO Yield

Dividend Yield

VALUATION

EV / Adj. EBITDA

P/FFO

P/E

P/BV

2011A

411

382

350

55%

550

1,441

1,183

2011A

14%

1.0x

0.1x

n.a.

1.5x

2011A

12.0%

-

9.0%

11.3%

3.4%

1%

2011A

22.5x

27.8x

32.6x

3.1x

2012A

521

445

372

49%

645

1,447

1,186

2012A

47%

2.8x

0.3x

0.0x

1.8x

2012A

11.0%

-

9.0%

11.6%

3.6%

2%

2012A

21.2x

26.1x

31.9x

3.0x

2013E

560

538

443

47%

798

1,482

1,266

2013E

34%

2.0x

0.2x

0.0x

1.7x

2013E

12.5%

-

9.0%

11.2%

4.3%

2%

2013E

16.3x

21.9x

27.0x

2.5x

2014E

644

639

565

49%

975

1,525

1,306

2014E

38%

1.9x

0.2x

0.0x

1.7x

2014E

14.2%

-

9.0%

13.5%

5.4%

2%

2014E

13.5x

17.2x

20.5x

2.3x

2015E

673

666

623

49%

1,099

1,650

1,417

2015E

43%

2.0x

0.2x

0.0x

1.8x

2015E

14.5%

-

9.0%

14.0%

6.0%

2%

2015E

12.3x

15.6x

19.1x

2.2x

2016E

789

757

747

50%

1,299

1,717

1,500

2016E

38%

1.6x

0.2x

0.0x

1.8x

2016E

17.0%

-

9.0%

15.7%

7.2%

3%

2016E

10.2x

13.0x

15.8x

2.0x


June 18, 2013


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35

Aliansce Corporate ProfileFINANCIAL METRICS (R$ mn)

Net revenues

Gross Profit

Gross margin

EBIT

EBIT margin

EBITDA

EBITDA margin

Adj. EBITDA


Taxes

Reported Net income

Net margin

# shares ('000)

EPS (R$)

NOPAT (before &A)

Depreciation

Amortization

FCFE

Dividends

Total assets

Cash

Debt

PP&E

Net debt

Book value

Invested capital

Market cap.

EV

2011A

258

209

81.0%

162

63%

189

73%

189

(37)

(30)

92

36%

139

0.7

159

26

1

(44)

23

2,062

273

744

1,435

471

1,077

1,646

3,186

3,658

2012A

339

272

80.1%

239

70%

281

83%

281

(98)

(40)

129

38%

144

0.9

241

40

2

348

26

3,616

520

1,723

2,570

1,202

1,553

2,891

3,186

4,389

2013E

449

348

77.5%

268

60%

331

74%

331

(183)

(28)

57

13%

159

0.4

303

61

2

(304)

19

4,227

317

2,206

3,318

1,889

1,650

3,660

3,186

5,076

2014E

552

431

78.0%

345

62%

420

76%

420

(220)

(30)

92

17%

159

0.6

390

73

2

50

23

4,461

367

2,360

3,501

1,993

1,719

3,836

3,186

5,179

2015E

620

487

78.5%

396

64%

476

77%

476

(204)

(46)

140

23%

159

0.9

430

78

2

177

23

4,654

544

2,418

3,519

1,874

1,835

3,839

3,186

5,060

2016E

691

549

79.4%

448

65%

530

77%

530

(184)

(64)

194

28%

159

1.2

466

80

2

188

70

4,846

732

2,460

3,509

1,7273

1,960

3,823

3,186

4,914

OPERATING METRICS

GLA(YE)

GLA (AVERAGE)

FFO

FFO margin


NOI per sq. meter


LEVERAGE

Net debt / Equity

Net debt / Ebitda




RETURN / YIELD

ROIC

WACC

Cost of Equity (ke)

ROE

FFO Yield

Dividend Yield

VALUATION

EV / Adj. EBITDA

P/FFO

P/E

P/BV

2011A

286

281

119

46%

229

813

671

2011A

44%

2.5x

0.2x

n.a.

1.9x

2011A

11.5%

-

9.6%

11.1%

3.7%

1%

2011A

19.4x

26.3x

34.6x

3.0x

2012A

410

354

138

41%

307

868

794

2012A

77%

4.3x

0.3x

0.0x

2.3x

2012A

9.7%

-

9.9%

8.9%

4.3%

1%

2012A

15.6x

23.1x

24.7x

2.1x

2013E

472

426

120

27%

406

952

777

2013E

115%

5.7x

0.4x

0.0x

2.6x

2013E

9.0%

-

9.9%

7.3%

3.8%

1%

2013E

15.3x

26.6x

55.8x

1.9x

2014E

505

485

167

30%

501

1,032

865

2014E

116%

4.7x

0.4x

0.0x

2.6x

2014E

10.9%

-

9.9%

9.7%

5.2%

1%

2014E

12.3x

19.1x

34.8x

1.9x

2015E

522

513

220

35%

561

1,093

926

2015E

102%

3.9x

0.4x

0.0x

2.5x

2015E

12.4%

-

9.9%

12.0%

6.9%

1%

2015E

10.6x

14.5x

22.8x

1.7x

2016E

540

540

276

40%

627

1,161

982

2016E

88%

3.3x

0.4x

0.0x

2.5x

2016E

13.9%

-

9.9%

14.1%

8.7%

2%

2016E

9.3x

11.5x

16.4x

1.6x


June 18, 2013


36/38

36

Sonae Sierra - Corporate ProfileFINANCIAL METRICS (R$ mn)

Net revenues

Gross Profit

Gross margin

EBIT

EBIT margin

EBITDA

EBITDA margin

Adj. EBITDA


Taxes

Reported Net income

Net margin

# shares ('000)

EPS (R$)

NOPAT (before &A)

Depreciation

Amortization

FCFE

Dividends

Total assets

Cash

Debt

PP&E

Net debt

Book value

Invested capital

Market cap.

EV

2012A

257

214

83.2%

197

77%

199

77%

199

(14)

(93)

186

72%

76

2.4

106

0

2

291

27

4,070

682

831

3,252

149

2,092

2,853

1,978

2,127

2011A

219

182

83.2%

174

79%

175

80%

175

23

(12)

231

105%

76

3.0

163

0

1

329

24

3,266

391

400

2,782

9

1,943

2,454

1,978

1,987

2013E

286

238

83.2%

217

76%

220

77%

220

(34)

(34)

102

36%

76

1.3

186

0

3

(136)

42

4,238

546

984

3,549

439

2,152

3,203

1,978

2,417

2014E

383

318

82.9%

289

75%

290

76%

290

(46)

(39)

143

37%

76

1.9

252

0

2

(26)

109

4,375

519

1,054

3,689

535

2,186

3,333

1,978

2,513

2015E

440

364

82.6%

332

75%

332

75%

332

(47)

(46)

168

38%

76

2.2

286

0

0

44

133

4,434

564

1,054

3,689

491

2,221

3,324

1,978

2,469

2016E

472

389

82.5%

355

75%

355

75%

355

(47)

(49)

182

39%

76

2.4

306

0

0

49

147

4,492

613

1,054

3,689

441

2,256

3,309

1,978

2,419

GLA(YE)

GLA (AVERAGE)

FFO

FFO margin


NOI per sq. meter


Net debt / Equity

Net debt / Ebitda




ROIC

WACC

Cost of Equity (ke)

ROE

FFO Yield

Dividend Yield

EV / Adj. EBITDA

P/FFO

P/E

P/BV

OPERATING METRICS

LEVERAGE

RETURN / YIELD

VALUATION

270

265

129

59%

184

695

662

0%

0.1x

0.0x

n.a.

1.7x

7.1%

-

11.1%

6.6%

6.5%

1%

11.4x

15.4x

8.6x

1.5x

2011A

2011A

2011A

2011A

291

308

110

43%

220

714

646

7%

0.7x

0.0x

0.0x

1.9x

7.0%

-

11.1%

5.2%

5.6%

1%

13.5x

18.0x

10.7x

1.0x

2012A

2012A

2012A

2012A

331

321

105

37%

250

778

684

20%

2.0x

0.1x

0.0x

2.0x

6.9%

-

11.1%

4.9%

5.3%

2%

13.4x

19.1x

19.6x

0.9x

2013E

2013E

2013E

2013E

433

415

145

38%

334

804

699

24%

1.8x

0.1x

0.0x

2.0x

8.7%

-

11.1%

6.6%

7.3%

5%

10.5x

13.8x

13.9x

0.9x

2014E

2014E

2014E

2014E

433

433

168

38%

382

883

767

22%

1.5x

0.1x

0.0x

2.0x

10.0%

-

11.1%

7.6%

8.5%

7%

9.0x

11.8x

11.8x

0.9x

2015E

2015E

2015E

2015E

433

433

182

39%

409

945

821

20%

1.2x

0.1x

0.0x

2.0x

10.7%

-

11.1%

8.1%

9.2%

7%

8.3x

10.9x

10.9x

0.9x

2016E

2016E

2016E

2016E


June 18, 20133-Year Price and Rating History for Sonae Sierra Brasil (SSBR3.SA)

DISCLOSURE APPENDIX CONTAINS ANALYST CERTIFICATIONS AND THE STATUS OF NON US ANALYSTS. US Disclosu re: Credit Suisse does a nd see ks to do busin ess wi th co mpa nies covered in iresearch reports. As a result, investors should be aware th at the Firm m ay have a confl ict of interest that could affect the objectivity of this report. Investors should consider this report as only a singfactor in making their investmen t decision.


37/38

37

SSBR3.SA Closing Price Target Price

Date (R$) (R$) Rating

15-Mar-11 22.90 32.00 O *

05-Sep-11 24.90 31.50

06-Sep-11 25.99 *

01-Dec-11 23.50 31.00 O

22-Mar-12 29.18 34.00 N

13-Dec-12 29.10 39.00 O

* Asterisk signifies initiation or assumption of coverage.

OUTPERFORM

NEUTRAL

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's totalrevenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts stock rating are defined as follows:

Outperform (O) : The stocks total return is expected to outperform the relevant benchmark*over the next 12 months.

Neutral (N) : The stocks total return is expected to be in line with the relevant benchmark* over the next 12 months.

Underperform (U) : The stocks total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stocks total return relative to the analyst's coverage universe whichconsists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, N eutrals the less attractive, andUnderperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stocks total returnrelative to the analyst's coverage universe which consists of a ll companies covered by the analyst within the relevant sector, with Outperforms representing the mostattractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non-Japan Asia stocks, ratings arebased on a stocks total return relative to the average total return of the relevant country or regional benchmark; Australia, New Zealand are, and prior to 2nd October2012 U.S. and Canadian ratings were based on (1) a stocks absolute total return potential to its current share price and (2) the relative attractiveness of a stocks totalreturn potential within an analysts coverage universe. For Australian and New Zealand stocks, 12-month rolling yield is incorporated in the absolute total returncalculation and a 15% and a 7.5% threshold replace the 10-15% level in the Outperform and Underperform stock rating definitions, respectively. The 15% and 7.5%thresholds replace the +10-15% and -10-15% levels in the Neutral stock rating definition, respectively. Prior to 10th December 2012, Japanese ratings were based on astocks total return relative to the average total return of the relevant country or r egional benchmark.

Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain t ypes of communications,including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain othercircumstances.

Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24months or the analyst expects significant volatility going forward.

Analysts sector weightings are distinct from analysts stock ratings and are based on the analysts expectations for the fundamentals and/or valuation ohe sector* relative to the groups historic fundamentals and/or valuation:

Overweight : The analysts expectation for the sectors fundamentals and/or valuation is favorable over the next 12 months.

Market Weight : The analysts expectation for the sectors fundamentals and/or valuation is neutral over the next 12 months.

Underweight : The analysts expectation for the sectors fundamentals and/or valuation is cautious over the next 12 months.

*An analysts coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)

Outperform/Buy* 42% (54% banking clients)Neutral/Hold* 40% (48% banking clients)Underperform/Sell* 15% (39% banking clients)Restricted 3%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspondto Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.)An investo r's decis ion to bu y or sell a secur ity should be based on investm ent obje ctives, cu rrent h oldings, a nd othe r indivi dual fact ors.

Credit Suisses policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or t he markethat may have a material impact on the research views or opinions stated herein.

Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer toCredit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research andanalytics/disclaimer/managing_conflicts_disclaimer.html

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Please refer to the firm's disclosure website at www.credit-suisse.com/researchdisclosures for the definitions of abbreviations typically used in the targetprice method and risk sections.

See the Companies Mentioned section for full company names

Companies Mentioned (Price as of 14-Jun-2013)

AREZZO INDUSTRIA (ARZZ3.SA, R$34.53)Aliansce Shopping Centers (ALSC3.SA, R$20.05)BR Malls Participacoes (BRML3.SA, R$20.63)CIA Hering S.A. (HGTX3.SA, R$33.09300117)Guararapes Confe (GUAR3.SA, R$88.51)Iguatemi (IGTA3.SA, R$23.2)Le Lis Blanc (LLIS3.SA, R$8.38)Lojas Renner(LREN3.SA, R$66.7)Marisa S.A. (AMAR3.SA, R$22.99)Multiplan Empreendimentos. Imobiliarios S/A (MULT3.SA, R$51.16)Sonae Sierra Brasil (SSBR3.SA, R$25.88)

Disclosure Appendix

Important Global Disclosures

Guilherme Rocha, Nicole Hirakawa and Vanessa Quiroga, CFA each certify, with respect to the companies or securities that the individual analyzes,that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no partof his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

3-Year Price and Rating History for Aliansce Shopping Centers (ALSC3.SA)

ALSC3.SA Closing Price Target Price


26-Aug-10 11.43 14.50 O *

06-Dec-10 13.72 17.00 N

05-Sep-11 13.00 18.00 O

06-Sep-11 13.13 *

01-Dec-11 14.35 18.00 O

22-Mar-12 17.10 20.50

19-Aug-12 18.95 24.00

29-Oct-12 22.75 R

21-Jan-13 25.05 30.50 O


OUTPERFORM

NEUTRAL

RESTRICTED

3-Year Price and Rating History for BR Malls Participacoes (BRML3.SA)

BRML3.SA Closing Price Target Price


25-Aug-10 6.95 32.00 N

24-Sep-10 14.07 16.50

06-Dec-10 16.60 19.00

28-Feb-11 15.85 20.00

05-Sep-11 18.97 25.00 O

06-Sep-11 19.50 *

01-Dec-11 19.05 24.00 O

22-Mar-12 22.50 27.00

22-Aug-12 24.90 28.00

28-Jan-13 26.00 31.00 N


NEUTRAL

OUTPERFORM

3-Year Price and Rating History for Multiplan Empreendimentos. Imobiliarios S/A (MULT3.SA)

MULT3.SA Closing Price Target Pri