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.
2
3. Index
4 Company Fundamentals
9 Sector Fundamentals
13 Growth Strategy
19 Operational and Financial Indicators
Parque D. Pedro Shopping „s Food Court (Campinas)
3
4. Sonae Sierra Brasil at a glance
One of the leading developers, owners and operators of top quality and regionally dominant
shopping centers in Brazil
Announced GLA growth (2010 – 2013)(1)
► 10 shopping centers owned and managed (350k sqm total GLA)
(„000 sq. m)(2)
Operating ► Occupancy rate of 97.5%
Expansion / Greenfield
Expertise Owned GLA Growth (%)
► Solid margins (EBITDA = 76.5% and FFO = 83.5%)
► Greenfield Expertise (62.4% of GLA)
188 +92.1%
► Leverage on the expertise, tenant relationships and market
recognition of our shareholders: Sonae Sierra SGPS and DDR
161 +60.5%
Shareholders: Corp (NYSE: DDR)
solid base ► Best-in-class controlling shareholders with significant experience in
the sector
156 +42.0%
► 30.4% free float
► Defined Growth strategy: focus on low served cities‟ middle class 115 +41.9%
► Largest secured growth in the sector: 3 greenfields, 1 expansion
Secured
recently concluded and 2 expansions at advanced stage, almost
Growth
doubling our owned GLA 115 +17.1%
► 3 other expansions already defined
Note: (1) As of June 30, 2011
(2) Referres to shopping center‟s GLA only.
.
4
5. Ownership Structure
Sonae Sierra Brasil benefits from best-in-class corporate governance and globally recognized
sector expertise, arising from a solid and engaged controlling shareholders
Post-IPO Ownership Breakdown Controlling Shareholders
Sierra Brazil 1 BV
Free Float
30.42%
Sonae
DDR
111 50%
Sierra
SGPS
50% ► Over 45 years of history ► Over 21 years of history
Enplanta Sierra Brazil 1 BV ► One of the largest
66.65%
► One of the largest developers
Shopping developers and operators of and operators of shopping
2.93%
shopping centers in US centers in Europe
► 12.4 mm sq m in total GLA
► Over 2.0 mm sq m in total
► NYSE listed, SOx Compliant GLA
► Equity value of US$3.5 ► 50/50 joint-venture between
billion(1) Sonae and Grosvenor
► NAV: €1.2 billion(1)
Note: (1) as of June 30, 2011
5
6. IPO Update
Since the IPO in February 2011, Sonae Sierra Brasil’s shares have had a solid performance
when compared to the Ibovespa
Stock Performance Since IPO versus Ibovespa
145
140
135 Performance – Feb 02 to September 09, 2011
130
SSBR3: + 29.0%
125
120 Ibovespa: - 16.4%
Stock Perform ance (base 100)
115
110
105
100 As a result of the
95
90
resources from the
85 IPO, SSB had a net
80
cash position of
75
70
R$159 million as of
June 30, 2011.
12-Aug
30-Aug
22-Aug
13-Apr
25-Apr
10-Feb
28-Feb
18-Feb
6-Jun
1-Jul
8-Sep
3-May
5-Apr
14-Jun
4-Aug
22-Jun
28-Mar
10-Mar
18-Mar
19-Jul
2-Feb
11-Jul
27-Jul
19-May
11-May
27-May
Ibovespa SSBR3
Broker Target Price (R$) 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
6
7. Investment thesis
► Attractive industry fundamentals
► Sound track record of developments and turnaround cases
► Strategy focused on dominant malls in underserved medium and large
Competitive edges
cities targeting to the fast growing middle class
► Experienced and committed management team
► Leverage on the know-how, strengths and long term commitment
of our sponsors
7
8. Index
4 Company Fundamentals
9 Sector Fundamentals
13 Growth Strategy
19 Operational and Financial Indicators
Manauara Shopping (Manaus)
8
10. 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
Shopping centers in Brazil
Shopping Malls 160 Shopping centers sales - CAGR (08-11): 16% 17.0%
140 15.4% 16.0%
15.0%
419 120 14.0% 14.0%
13.7%
381 14.0%
359 100
342 13.0%
80
109.1 12.0%
89.5
60 78.8 11.0%
70.1
40 10.0%
2008 2009 2010 2011e
2008 2009 2010 2011e Sales (R$ billion) % of Total Retail Sales
Source: IBOPE Source: IBOPE
Low shopping center market penetration Brazilian Shopping centers growth by region: 2014e
Total GLA (m²) / 1,000 inhabitants (2010)
Southeast 2010 Southeast 2014
205 +29% 265
2,180 South 2010 South 2014
1,290 73 +15% 84
Northeast 2010 Northeast 2014
Average: 49 55 +20% 66
Mid West 2010 Mid West 2014
143 37 +16% 43
81 91 42
53 34 31 34
North 2010 North 2014
USA Canada Mexico DF SP PR AM GO MG Other BR 11 +72% 19
states
Source: ABRASCE and IBGE. Source: IBOPE
10
11. Fast growing middle class
Around 39 million people have moved upwards into the middle class, while middle class
disposable income has increased by 99%
Increasing middle class Middle class: disposable income(1) (R$/month)
2005 2010 +99% 243
Population: 182 mm Population: 191 mm
122
Upper class
A+B 2005 2010
15% 21% Over R$ 12 billion increase in monthly disposable
+16 mm people income
Middle class
Total credit to individuals outstanding (R$ bn)
C 34%
6.8x
600
53%
+39 mm people 400
Lower class
D+E 200
51%
25% - 45 mm people
-
Jan-01 May-02 Sep-03 Jan-05 May-06 Sep-07 Jan-09 May-10
Source: Cetelem “O Observador 2011” Note: (1) Income available for spending and saving
Source: Cetelem “O Observador 2011”, IBGE and Itau Securities
Sonae Sierra Brazil is strategically positioned to capture the middle class consumption
growth, as it entails over 80% of its target audience
11
12. Index
4 Company Fundamentals
9 Sector Fundamentals
13 Growth Strategy
19 Operational and Financial Indicators
Shopping Penha (São Paulo)
12
13. 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
Total GLA: 343k sq m Total GLA 2013: 513k sq m
Owned GLA: 203k sq m Owned GLA 2013: 391k sq m
Owned GLA concentration
41.6%
Manaus 58.4%
São Paulo Other states
Core Portfolio of Assets
Manauara Shopping
► Manaus (AM)
► Population: 1,739k
# of competitors in area of influence ► GLA: 47k sq m Goiânia
► 99.7% leased
Parque D. Pedro 2
Uberlândia
Boavista 2
Penha 2 Londrina
Franca 1
Tivoli 1
Parque D. Pedro
Metrópole 2
► Campinas (SP)
► Population: 1,065k
Pátio Brasil 2
► GLA: 121k sq m # of cities with more than 300k
► Occupancy rate: 95.2% Greenfield inhabitants in Brazil
Plaza Sul 1
► Over 20 mm visits in 2010
Recently opened mall + 81
Campo Limpo 2
Shopping centers Shopping centers
Strong track record in Brazil’s most dynamic region Growth strategy focused on underserved regions
13
14. 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
Percentage of the Company’s interest Rationale
GLA
Shopping Center City State Stake Management
(‘000 sqm)
Parque D. Pedro(1) Campinas SP 121,0 51.0%
Penha São Paulo SP 29,6 73.2% Strategic control of the malls
Metrópole São Bernardo SP 23,9 100.0%
Santa Bárbara
Tivoli
d‟Oeste
SP 22,1 30.0%
Pátio Brasil Brasília DF 28,8 10.4%
Ability to expand and
Boavista São Paulo SP 16,0 100.0% adapt to market trends
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% Control the management
services of 100% of the
Manauara Manaus AM 46,8 100.0% malls
Weighted Average 58.2%
Uberlândia Uberlândia MG 43,6 100.0%
Londrina Londrina PR 47,8 84.5%
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.
14
15. Greenfield Projects
Sonae Sierra Brasil’s strategy is to develop greenfield projects which have the potential to
become the market dominant malls in their regions
Boulevard Londrina Shopping Passeio das
Uberlândia Shopping
Shopping Águas
City: Uberlândia Londrina Goiânia
State: Minas Gerais Paraná Goiás
Opening : 1Q12 2H12 2013
Status: Construction in progress Construction in progress Construction in progress
Total GLA (‘000 sq m): 43.6 47.8 78.1
Company’s stake: 100% 84.5% 100%
% of GLA already 88% 71% 24%
committed*:
* As of June 30, 2011
15
16. Expansions
Concluded
On-going expansions Future expansions
expansion
Parque D. Pedro Metrópole Campo Limpo Parque D. Pedro Metrópole Tivoli
(Expansion I) (Expansion I) (Expansion II) (Expansion II)
São Bernardo São Bernardo Sta. Bárbara
Location Campinas (SP) São Paulo (SP) Campinas (SP)
(SP) (SP) D‟Oeste (SP)
Sonae Sierra
51% 100% 20% 51% 100% 30%
Brasil Stake
Additional
5.0 9.0 3.0 5.0 12.0 7.0
Total GLA (‘000 sq m)
Construction
1H2010 1H2010 1H2011 2H2012 2H2012 2H2012
Start Date
Expected
November 2010 Nov 2011 Sep 2011 2013 2013 2013
Opening
% of GLA 100% 99% 90% n.a. n.a. n.a.
already committed*:
* As of June 30, 2011
16
17. Secured Growth
Sonae Sierra Brasil has a solid pipeline of new developments and expansions underway that
will almost double the Company’s GLA within 3 years
Owned GLA growth (000 sq m)
Goiânia
Expansion Greenfields
Londrina
Uberlândia
78
16
Metrópole (II)
84
Tívoli
10
PDP (II)
391
Metrópole (I)
Campo Limpo
203 +92%
2010 2011 2012 2013 Total
17
18. Index
4 Company Fundamentals
9 Sector Fundamentals
13 Growth Strategy
19 Operational and Financial Indicators
Shopping Campo Limpo (São Paulo)
18
22. Net Cash Position and Modest Leverage
Net Cash Position (R$ million) Debt Profile
TR Fixed
42% 42%
CDI
16%
Debt Amortization Schedule (R$ million)
159.9
20.9
39.6 39.6 39.2
Up to 2012 2013 2014 2015 2016 onwards
Data on June 30th, 2011
22
23. Appendix: Sector Multiples
SSBR3 is trading at a discount against its peers in the Brazilian shopping malls sector.
2011 P/FFO (x)
P/FFO EV/EBITDA
2011 EV/EBITDA (x)
Peers Avg: 18.3x
31.2% discount to Peers Avg
Peers Avg: 18.3x
22.1% discount to Peers Avg
21.4x
23.9x
16.6x 17.2x 17.9x
18.4x 16.9x
14.3x 14.1x 12.6x
SSBR3 ALSC3 MULT3 BRML3 IGTA3 SSBR3 ALSC3 MULT3 BRML3 IGTA3
2012 P/FFO (x)
P/FFO EV/EBITDA
2012 EV/EBITDA (x)
Peers Avg: 15.4x
Peers Avg: 15.5x 39.0% discount
23.7% discount to Peers Avg to Peers Avg
17.0x 17.3x 15.6x 15.8x 15.8x
14.5x
14.1x 13.7x
11.9x
9.4x
SSBR3 ALSC3 MULT3 BRML3 IGTA3 SSBR3 ALSC3 MULT3 BRML3 IGTA3
Source: Bloomberg
23
24. Appendix: Sector Operating Performance
Adjusted EBITDA Margin
Source: Companies Earnings Results 2Q10 2Q11
1H10 1H11
82% 80% 83%
80%
76% 77% 74% 76% 77%
72% 72% 71% 70% 70%
69%
68% 66% 66% 65% 67% 70%
64%
57% 60%
SSB Multiplan BR Malls Iguatemi Aliansce General SSB Multiplan BR Malls Iguatemi Aliansce General
Adjusted FFO Margin
Source: Companies Earnings Results 2Q10 2Q11 1H10 1H11
84%
76% 77%
73%
70%
66% 65%
62% 64% 62% 61% 63%
61% 61%
58% 57% 58%
51%
43% 42%
38%
32%
8% 8%
SSB Multiplan BR Malls Iguatemi Aliansce General SSB Multiplan BR Malls Iguatemi Aliansce General
SSB’s FFO margin is the highest of the Brazilian shopping mall sector, reaching 84% in 2Q11 and 77% in 1H11. Also, SSB’s
EBITDA margin is among the highest of the sector, just behind of BR Malls, which benefits from its size.
Note: SSB considers 100% of the Parque D. Pedro Shopping results.
24
