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. Sonae Sierra Brasil at a glance
One of the leading developers, owners and operators of top quality and regionally dominant
shopping centers in Brazil
► Fully integrated business model with proven local track record Announced GLA growth (2010 – 2013)(1)
Business – Property management („000 sq. m)(2)(3)
Model – Development and re-development
– Leasing Expansion / Greenfield
Owned GLA Growth (%)
Operating ► 10 shopping centers owned and managed
Expertise ► Occupancy rate of 98.0% 188 +92.1%
► Leverage on the expertise, tenant relationships and market recognition of
our shareholders: Sonae Sierra SGPS and Developers Diversified Realty 155 +41.8%
Strong (NYSE: DDR)
Sponsorship
► Best-in-class controlling shareholders with significant experience in the
sector and significant capital at risk
153 +64.6%
Outstanding ► 62.4% of our owned GLA developed by us
Growth Track ► Adjusted EBITDA Growth (09-10): 42.1%
Record ► Adjusted FFO Growth (09-10): 60.2%
144 +23.8%
► Largest secured growth in the sector: 3 greenfields, 1 expansion recently
Secured concluded and 1 expansion at advanced stage, almost doubling our owned
Growth GLA 89 +33.7%
► 4 other expansions already defined
Note: (1) As of December, 2010.
(2) 4Q10 figures for the public peers; BRMalls adjusted for Tijuca.
(3) Referred to shopping center‟s GLA only.
Source: Company.
3
4. Sound track record
Sonae Sierra Brasil’s historical evolution | Owned GLA (‘000 sq m)
Acquisition
Development Acquisition of CAGR(01-10): 26.2%
Acquisition of a 20% additional stakes in
stake in Plaza Sul Metrópole, Plaza Sul
and Tivoli
200.0 203.7
Opening of PDP
Shopping
128.4
150.0 148.5
102.7
Opening of
Manauara Shopping
108.5 DDR becomes a
shareholder with
80.8 50% stake
79.9
Opening of Opening of Campo
Boavista Shopping Limpo
Acquisition of
25.1 additional stake in
Metrópole
1999… 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total GLA 111.7 219.0 220.9 242.1 273.8 297.8 298.8 296.8 343.5 350.1
(„000 sq m)
Owned GLA as 22.5% 36.5% 36.6% 42.4% 39.6% 43.1% 50.2% 50.0% 58.2% 58.2%
% of total GLA
4
5. Strategy focused on dominant malls on underserved
medium and large cities
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: 200k 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 2009
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
5
6. Portfolio
1. Parque D. Pedro 8. Plaza Sul Shopping
► Campinas (SP) ► São Paulo (SP)
► GLA ('000 sqm): 121.0 ► GLA ('000 sqm): 23.0
► Stores : 406 ► Stores : 217
► 95.2% of GLA occupied ► 99.9% of GLA occupied
10
2. Boavista Shopping 9. Campo Limpo Shopping
► São Paulo (SP) ► São Paulo (SP)
► GLA ('000 sqm): 16.0 ► GLA ('000 sqm): 19.9
► Stores : 148 ► Stores : 127
► 98.6% of GLA occupied ► 99.9% of GLA occupied
3. Penha Shopping 7 10. Manauara Shopping
► São Paulo (SP) 13 ► Manaus (AM)
► GLA ('000 sqm): 29.6 11 ► GLA ('000 sqm): 46.7
► Stores : 198 ► Stores : 235
► 99.5% of GLA occupied ► 99.7% of GLA occupied
12
4. Franca Shopping 11 Uberlândia Shopping
► Franca (SP) 4 ► Uberlândia (MG)
► GLA ('000 sqm): 18.1 5 ► GLA ('000 sqm): 43,6
► Stores : 101 ► Expected Opening:
1 2H 11
► 100.0% of GLA occupied
8
3
2 9
6
5. Tivoli Shopping 7 Pátio Brasil 12 Boulevard Londrina
► Santa Barbara d'Oeste (SP) ► Cidade: Brasília (DF) Shopping
► GLA ('000 sqm): 22.1 ► GLA ('000 sqm): 29.0 ► Londrina (PR)
► Stores : 147 ► Stores : 235 Shopping centers ► GLA ('000 sqm): 47.8
► 100.0% of GLA occupied ► 98.7% of GLA occupied ► Expected Opening; 2H12
Greenfield
6. Metrópole Shopping ► Shopping Centers in operation 13 Passeio das Águas
► São Bernardo do Campo (SP) Shopping
Total Stores: 1,966 Ownership: 58.2% ► Goiânia (GO)
► GLA ('000 sqm): 25.0
► Stores : 152
GLA ('000 sqm): 350.1 Occupancy Rate: 98.0% ► GLA ('000 sqm): 78.1
► 99.3% of GLA occupied Owned GLA ('000 sqm): 203.7 ► Expected Opening: 2013
* Information as of December 31, 2010
6
7. Investment thesis
► Attractive industry fundamentals
► Strategy focused on dominant malls in underserved medium and large
cities targeting to the fast growing middle class
► Sound track record of developments and turnaround cases
Competitive edges
► Leverage on the know-how, strengths and long term commitment
of our sponsors
► Experienced and committed management team
7
8. Attractive shopping center industry fundamentals
Despite the strong growth observed in the last years, decreasing vacancy rates and low
penetration vis-à-vis developed markets, indicate significant room for new shopping centers in
Brazil
Shopping centers industry sales Nominal retail sales growth
(R$ bn)
19%
87.0
71.1 14%
64.6 13%
58.0 12%
11%
50.0 10%
45.5 9%
41.6 8%
35.9
28.8 31.7
26.1 5%
4%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Source: ABRASCE. Source: IBGE.
Low shopping center market penetration Retail sales in shopping centers
Total GLA (m²) / 1,000 inhabitants (2010) (% 2010)
66%
2,180
51% 50%
1,290
Average: 49 28%
18% (1)
81 143
91 53 42 34 31 34
USA Canada Mexico DF SP PR AM GO MG Other BR
states Canada USA Mexico France Brazil
Note: (1) 2010 data.
Source: ABRASCE and IBGE.
Source: ABRASCE.
8
9. Fast growing middle class
Around 30 million people have moved upwards into the middle class, while middle class
disposable income has increased by 67%
Increasing middle class Middle class: disposable income(1) (R$/month)
2005 2009 +67% 204
Population: 182 mm Population: 190 mm
122
Upper class
A+B 2005 2009
15% 16% Approximately R$ 10 billion increase in monthly
+4 mm people disposable income
Middle class
Total credit to individuals outstanding (R$ bn)
C 34%
49%
6.8x
600
+30 mm people 400
Lower class
D+E 200
51% 35%
-26 mm people -
Jan-01 May-02 Sep-03 Jan-05 May-06 Sep-07 Jan-09 May-10
Source: Cetelem “O Observador 2010” Note: (1) Income available for spending and saving
Source: Cetelem “O Observador 2009”, 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
9
10. Focus on value creation through organic growth
Parque D. Pedro: Greenfield case study
Project Details
Opening October 2002
Sonae Sierra Brasil’s stake(1) 51.0%
GLA (‘000 sqm) 121.0
Occupancy Rate (%) 95.2%
Parking (#) 8,000
Traffic (# of visitors) 20.1 million
Food Court Internal View Aerial perspective
(1) Sonae Sierra SGPS and Developers Diversified Realty hold an additional 25.9% indirect owneship in Parque D. Pedro througgh another vehicle
10
11. Focus on value creation through organic growth
(contd.)
Parque D. Pedro 2010 Expansion: Upgrading the tenants mix
Highlights
Opening November 2010
Total GLA (m2) 5,400
Anchor / semi-anchor 2
Satellite stores 32
Selected new stores
11
12. Controlling interests in most of shopping centers
Sonae Sierra Brasil average 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
Shopping Center Stake Management
Parque D. Pedro(1) 51.0%
Penha 73.2%
Metrópole 100.0%
Strategic control of the malls
Tivoli 30.0%
Pátio Brasil 10.4%
Boavista 100.0%
Franca 67.4% Ability to expand and adapt to market
trends
Plaza Sul 30.0%
Campo Limpo 20.0%
Manauara 100.0%
Weighted Average 58.2% Control the management
services of 100% of the malls
Uberlândia 100.0%
Londrina 84.5%
Goiânia 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 vehicle.
12
13. Leveraging on the strengths and relationships of
our sponsors
Sonae Sierra Brasil benefits from best-in-class corporate governance and globally recognized
sector expertise, arising from a solid and engaged shareholders base
Superior ► NYSE listed, SOx compliant
Governance ► Euronext Lisbon listed
► Over 21 years of history
► One of the largest developers
and operators of shopping
centers in Europe
► Executives with global experience
Experienced
► Board members with in-depth global sector expertise
► Over 2.0 mm sq m in total Professionals
GLA ► Interchange of key professional staff among companies
► 20 years of experience in Europe, 45 years in the US and 12 years in
Sharing of Best Brazil
Business
► More than 14.4 mm sq m GLA developed globally
Practices
► Roughly 15 mm sq m GLA currently under management
► Over 45 years of history
► One of the largest
developers and operators of Top Tenants Globally
shopping centers in the Unique Tenant
world Relationship
► 12.4 mm sq m in total GLA
► NYSE listed, SOx Compliant
► Equity value of US$3.4 Top Tenants Globally
billion(1)
Note: (1) Bloomberg as of January 11th, 2011.
13
14. Secured Growth
Sonae Sierra Brasil has a solid pipeline of new developments and expansions underway that
will almost double the Company’s GLA within 3 years
Owned GLA growth (000 sq m)
Goiânia
Expansion Greenfields
78
Londrina
13
Uberlândia
40
3 Metrópole (II)
44 Tívoli
10 PDP (II)
392
Metrópole (I)
Campo Limpo
204 +92%
2010 2011 2012 2013 Total
14
15. Greenfield Projects
Sonae Sierra Brasil’s strategy is to develop greenfield projects which have the potential to
become the market dominant malls in their regions
Boulevard Londrina Shopping Passeio das
Uberlândia Shopping
Shopping Águas
City: Uberlândia Londrina Goiânia
State: MG PR GO
Opening : 2H2011 2H2012 2013
Status: Work in progress Work in progress Approved licences
Total GLA (‘000 sq m): 43.6 sqm 47.8 sqm 78.1 sqm
Company’s stake: 100% 84,5% 100%
% of GLA already 77% 64% 20%
committed*:
* As of December 31, 2010
15
16. Expansions
Concluded
On-going expansions Future expansions
expansion
Parque D. Pedro Metrópole Campo Limpo Parque D. Pedro Metrópole Tivoli
(Expansion I) (Expansion I) (Expansion II) (Expansion II)
São Bernardo São Bernardo Sta. Bárbara
Location Campinas (SP) São Paulo (SP) Campinas (SP)
(SP) (SP) D‟Oeste (SP)
Sonae Sierra
51% 100% 20% 51% 100% 30%
Brasil Stake
Additional
5.0 9.0 3.0 5.0 12.0 7.0
Total GLA (‘000 sq m)
Construction
1H2010 1H2010 1H2011 1H2012 1H2012 1H2012
Start Date
Expected
November 2010 2H2011 2011 2012 2013 2013
Opening
% of GLA 100% 99% 69% n.a. n.a. n.a.
already committed*:
* As of December 31, 2010
16
19. Financial and operating performance (cont.)
Net Operating Income - NOI (R$ million) Adjusted EBITDA and Margin (R$ million)
30.5%
167.4 79.0% 76.4%
71.2%
64.6%
128.3
141.4
16.7% 111 111
99.5
51.1
43.8
34.5 41.2
4Q09 4Q10 2009 2010 4Q09 4Q10 2009 2010
Adjusted FFO and Margin (R$ million) Net Income (R$ million)
-12.4%
70.1% 67.3%
242.9 212.8
57.8%
50.5%
111 124.6
6.3%
111
77.8
36.6 43.4 46.1
28.0
4Q09 4Q10 2009 2010 4Q09 4Q10 2009 2010
19
20. Cash Position and Leverage
Pro-forma Net Cash Position (R$ million) 4Q10 Debt Amortization Schedule (R$ million)
275.5
73.6 61.6
430.0
213.9
194.7
104.3
7.2
73.6
216.1
27.1 27.1 26.4
7.2 9.7
2011 2012 2013 2014 2015 2016 and on
4Q10 Total 4Q10 Cash & 4Q10 Net Debt IPO Net Pro-forma Net
Bank Loan Intercompany
Debt Equivalents Proceeds Cash
Short Term Long Term Intercompany Loan
SSB’s leverage strategy is to finance the greenfield projects up to 50% LTC. Financing for
Uberlândia and Londrina has already been contracted and for Passeio das Águas is currently
under negotiation
20
21. Questions & answers
Investors Relations
Carlos Alberto Correa
Investors Relations Officer
Murilo Hyai
Investors Relations Manager
Email:
ribrasil@sonaesierra.com
Phone:
Thank You
+55 (11) 3371-4188
