05 05-2011 - 2011 2011 Institutional Presentation

Management Presentation

May 2011

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.

3

One of the leading developers, owners and operators of top quality and regionally dominant

shopping centers in Brazil

Sonae Sierra Brasil at a glance

► Fully integrated business model with proven local track record

– Property management

– Development and re-development

– Leasing

► 62.4% of our owned GLA developed by us

► Adjusted EBITDA Growth (09-10): 42.1%

► Adjusted FFO Growth (09-10): 60.2%

► Largest secured growth in the sector: 3 greenfields, 1 expansion recently

concluded and 1 expansion at advanced stage, almost doubling our owned

GLA

► 4 other expansions already defined

► 10 shopping centers owned and managed

► Occupancy rate of 98.0%

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.

► Leverage on the expertise, tenant relationships and market recognition of

our shareholders: Sonae Sierra SGPS and Developers Diversified Realty

(NYSE: DDR)

► Best-in-class controlling shareholders with significant experience in the

sector and significant capital at risk

Business

Model

Outstanding

Growth Track

Record

Secured

Growth

Operating

Expertise

Strong

Sponsorship

Expansion / Greenfield

Announced GLA growth (2010 – 2013)(1)

(„000 sq. m)(2)(3)

+33.7%89

+64.6%153

+23.8%144

+41.8%155

+92.1%188

Owned GLA Growth (%)

4

Opening of Boavista Shopping

Acquisition of

additional stakes in

Metrópole, Plaza Sul

and Tivoli

Opening of PDP

Shopping

Sound track record

Sonae Sierra Brasil’s historical evolution | Owned GLA (‘000 sq m)

CAGR(01-10): 26.2%

DDR becomes a

shareholder with

50% stake

2001 2002 2003 2004 2005 2006 2007 2008 2009

Acquisition of a 20%

stake in Plaza Sul

Opening of Manauara Shopping

25.1

79.980.8

102.7

108.5

128.4

150.0 148.5

200.0 203.7

2010

Total GLA

(„000 sq m)111.7 219.0 220.9 242.1 273.8 297.8 298.8 296.8 343.5 350.1

1999…

Owned GLA as

% of total GLA

111.7

36.5% 36.6% 42.4% 39.6% 43.1% 50.2% 50.0% 58.2% 58.2%22.5%

Acquisition

Development

Acquisition of

additional stake in

Metrópole

Opening of Campo Limpo

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

Core Portfolio of Assets

Strong track record in Brazil’s most dynamic region Growth strategy focused on underserved regions

Parque D. Pedro

► Campinas (SP)

► Population: 1,065k

► GLA: 121k sq m

► Occupancy rate: 95.2%

► Over 20 mm visits in 2009

Total GLA: 343k sq m

Owned GLA: 200k sq m

Greenfield

Manauara Shopping

► Manaus (AM)

► Population: 1,739k

► GLA: 47k sq m

► 99.7% leased

# of competitors in area of influence

Parque D. Pedro 2

Boavista 2

Penha 2

Franca 1

Tivoli 1

Metrópole 2

Pátio Brasil 2

Plaza Sul 1

Campo Limpo 2

Total GLA 2013: 513k sq m

Owned GLA 2013: 391k sq m

# of cities with more than 300k

inhabitants in Brazil

+ 81

41.6%

58.4%

São Paulo Other states

Owned GLA concentration

Shopping centers

Recently opened mall

Shopping centers

Manaus

Goiânia

Uberlândia

Londrina

6

Portfolio

Greenfield

Shopping centers

4

5

1

89

32

6

7

11

13

12

10

1. Parque D. Pedro

► Campinas (SP)

► GLA ('000 sqm): 121.0

► Stores : 406

► 95.2% of GLA occupied

2. Boavista Shopping

► São Paulo (SP)

► GLA ('000 sqm): 16.0

► Stores : 148

► 98.6% of GLA occupied

3. Penha Shopping

► São Paulo (SP)

► GLA ('000 sqm): 29.6

► Stores : 198

► 99.5% of GLA occupied

4. Franca Shopping

► Franca (SP)

► GLA ('000 sqm): 18.1

► Stores : 101

► 100.0% of GLA occupied

5. Tivoli Shopping

► Santa Barbara d'Oeste (SP)

► GLA ('000 sqm): 22.1

► Stores : 147

► 100.0% of GLA occupied

6. Metrópole Shopping

► São Bernardo do Campo (SP)

► GLA ('000 sqm): 25.0

► Stores : 152

► 99.3% of GLA occupied

7 Pátio Brasil

► Cidade: Brasília (DF)

► GLA ('000 sqm): 29.0

► Stores : 235

► 98.7% of GLA occupied

8. Plaza Sul Shopping

► São Paulo (SP)

► GLA ('000 sqm): 23.0

► Stores : 217

► 99.9% of GLA occupied

9. Campo Limpo Shopping

► São Paulo (SP)

► GLA ('000 sqm): 19.9

► Stores : 127

► 99.9% of GLA occupied

10. Manauara Shopping

► Manaus (AM)

► GLA ('000 sqm): 46.7

► Stores : 235

► 99.7% of GLA occupied

11 Uberlândia Shopping

► Uberlândia (MG)

► GLA ('000 sqm): 43,6

► Expected Opening:

2H 11

12 Boulevard Londrina

Shopping

► Londrina (PR)

► GLA ('000 sqm): 47.8

► Expected Opening; 2H12

13 Passeio das Águas

Shopping

► Goiânia (GO)

► GLA ('000 sqm): 78.1

► Expected Opening: 2013

► Shopping Centers in operation

Total Stores: 1,966 Ownership: 58.2%

GLA ('000 sqm): 350.1 Occupancy Rate: 98.0%

Owned GLA ('000 sqm): 203.7

* Information as of December 31, 2010

7

Investment thesis

Competitive edges

► Attractive industry fundamentals

► Strategy focused on dominant malls in underserved medium and large

cities targeting to the fast growing middle class

► Leverage on the know-how, strengths and long term commitment

of our sponsors

► Sound track record of developments and turnaround cases

► Experienced and committed management team

8

26.1 28.8 31.735.9

41.645.5

50.0

58.064.6

71.1

87.0

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

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

Retail sales in shopping centers

(R$ bn)

Nominal retail sales growth

Source: IBGE.Source: ABRASCE.

Low shopping center market penetration

Source: ABRASCE and IBGE.

Total GLA (m²) / 1,000 inhabitants (2010)

66%

51% 50%

28%

18%

Canada USA Mexico France Brazil

(% 2010)

(1)

Note: (1) 2010 data.

Source: ABRASCE.

4%

9%

11%

19%

8%

5%

14%

10%

12% 13%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E

2,180

USA Canada

1,290

SP

91

PR

53

MG

31

GO

34

AM

42

DF

143

Other BR

states

34

Average: 49

Mexico

81

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%

Middle class: disposable income(1) (R$/month)

Note: (1) Income available for spending and saving

Source: Cetelem “O Observador 2009”, IBGE and Itau Securities

122

204

2005 2009

+67%

Approximately R$ 10 billion increase in monthly

disposable income

Total credit to individuals outstanding (R$ bn)

Source: Cetelem “O Observador 2010”

Increasing middle class

51% 35%

34%49%

16%15%

2005 2009

Population: 182 mm Population: 190 mm

+4 mm people

+30 mm people

-26 mm people

A+B

C

D+E

Up

pe

r c

las

sM

idd

le c

las

sL

ow

er

cla

ss

Sonae Sierra Brazil is strategically positioned to capture the middle class consumption

growth, as it entails over 80% of its target audience

6.8x

-

200

400

600

Jan-01 May-02 Sep-03 Jan-05 May-06 Sep-07 Jan-09 May-10

10

Parque D. Pedro: Greenfield case study

(1) Sonae Sierra SGPS and Developers Diversified Realty hold an additional 25.9% indirect owneship in Parque D. Pedro througgh another vehicle

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

Internal View Aerial perspective

Focus on value creation through organic growth

Food Court

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

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

RationalePercentage of the Company’s interest

Shopping Center Stake Management

Parque D. Pedro(1) 51.0%

Penha 73.2%

Metrópole 100.0%

Tivoli 30.0%

Pátio Brasil 10.4%

Boavista 100.0%

Franca 67.4%

Plaza Sul 30.0%

Campo Limpo 20.0%

Manauara 100.0%

Weighted Average 58.2%

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.

Ability to expand and adapt to market

trends

Control the management

services of 100% of the malls

Strategic control of the malls

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

Governance

► NYSE listed, SOx compliant

► Euronext Lisbon listed► Over 21 years of history

► One of the largest developers

and operators of shopping

centers in Europe

► Over 2.0 mm sq m in total

GLA

► Over 45 years of history

► One of the largest

developers and operators of

shopping centers in the

world

► 12.4 mm sq m in total GLA

► NYSE listed, SOx Compliant

► Equity value of US$3.4

billion(1)

Experienced

Professionals

► Executives with global experience

► Board members with in-depth global sector expertise

► Interchange of key professional staff among companies

Sharing of Best

Business

Practices

► 20 years of experience in Europe, 45 years in the US and 12 years in

Brazil

► More than 14.4 mm sq m GLA developed globally

► Roughly 15 mm sq m GLA currently under management

Unique Tenant

Relationship

Top Tenants Globally

Top Tenants Globally

Note: (1) Bloomberg as of January 11th, 2011.

14

Secured Growth

Owned GLA growth (000 sq m)

Uberlândia

Londrina

Goiânia

+92%

Metrópole (I)

PDP (II)

Metrópole (II)

Tívoli

40

204

392

3

13

78

44

2010 2011 2012 2013 Total

Expansion Greenfields

10

Campo Limpo

Sonae Sierra Brasil has a solid pipeline of new developments and expansions underway that

will almost double the Company’s GLA within 3 years

15

Greenfield Projects

Uberlândia Shopping

Uberlândia

MG

2H2011

Work in progress

43.6 sqm

100%

77%

Boulevard Londrina

Shopping

Londrina

PR

2H2012

Work in progress

47.8 sqm

84,5%

64%

Shopping Passeio das

Águas

Goiânia

GO

2013

Approved licences

78.1 sqm

100%

20%

Opening :

Total GLA (‘000 sq m):

Company’s stake:

% of GLA already

committed*:

Status:

Sonae Sierra Brasil’s strategy is to develop greenfield projects which have the potential to

become the market dominant malls in their regions

City:

State:

* As of December 31, 2010

16

Expansions

Future expansions

TivoliMetrópole

(Expansion II)

Parque D. Pedro

(Expansion II)

Campo Limpo

Concluded

expansion

Parque D. Pedro

(Expansion I)

On-going expansions

Metrópole

(Expansion I)

LocationSão Bernardo

(SP)

Sta. Bárbara

D‟Oeste (SP)Campinas (SP)São Paulo (SP)Campinas (SP)

São Bernardo

(SP)

Sonae Sierra

Brasil Stake100% 30%51%20%51% 100%

Additional

Total GLA (‘000 sq m)12.0 7.05.03.05.0 9.0

Expected

Opening2013 201320122011November 2010 2H2011

Construction

Start Date1H20121H2011 1H2012 1H20121H2010 1H2010

% of GLA

already committed*:100% 99% 69% n.a. n.a. n.a.

* As of December 31, 2010

111

1717

Operating Indicators

Occupancy Rate

111

Sales (R$ million)

111

SSS/m²

111

SSR/m²

982 1,119

3,041

3,545

4Q09 4Q10 2009 2010

14.0%

16.6%

1,028 1,122

824 902

4Q09 4Q10 2009 2010

9.1%

9.5%

5561

4549

4Q09 4Q10 2009 2010

9.5%

8.0%

97.3%

96.3%

97.0%97.2%

98.3% 98.5% 98.4%

98.0%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Financial and operating performance

18

Gross Revenue (R$ '000) 4Q10 4Q09 % 2010 2009 %

Rent 45,411 41,484 9.5% 158,246 132,370 19.5%

Service revenue 2,996 4,576 -34.5% 15,530 18,390 -15.6%

Parking revenue 5,773 3,383 70.6% 16,629 6,645 150.2%

Key Money 2,719 2,289 18.8% 10,399 9,232 12.6%

Other revenue 424 1,005 -57.8% 808 2,186 -63.0%

Total 57,323 52,737 8.7% 201,612 168,823 19.4%

111

Gross Revenue (R$ million)

111

Gross Revenue Breakdown

78%

11%

4%6%

1%

2009

79%

8%

8%5%

2010

Rent

Service revenue

Parking revenue

Key Money

Other revenue52.7 57.3

168.8

201.6

4Q09 4Q10 2009 2010

8.7%

19.4%

111

1919

Financial and operating performance (cont.)

Adjusted EBITDA and Margin (R$ million)

111

Net Operating Income - NOI (R$ million)

111

Adjusted FFO and Margin (R$ million)

111

Net Income (R$ million)

34.5 41.2

99.5

141.4

71.2%

79.0%

64.6%

76.4%

4Q09 4Q10 2009 2010

28.036.6

77.8

124.6

57.8%

70.1%

50.5%

67.3%

4Q09 4Q10 2009 2010

43.4 46.1

242.9 212.8

4Q09 4Q10 2009 2010

6.3%

-12.4%

43.851.1

128.3

167.4

4Q09 4Q10 2009 2010

16.7%

30.5%

7.2

430.0

216.1

194.7213.9

73.6 61.6

4Q10 Total Debt

4Q10 Cash & Equivalents

4Q10 Net Debt IPO Net Proceeds

Pro-forma Net Cash

Short Term Long Term Intercompany Loan

2020

Cash Position and Leverage

Pro-forma Net Cash Position (R$ million) 4Q10 Debt Amortization Schedule (R$ million)

7.2 9.7

27.1 27.1 26.4

104.3

73.6

2011 2012 2013 2014 2015 2016 and on

Bank Loan Intercompany

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

275.5

Thank You

Questions & answers

Investors Relations

Carlos Alberto Correa

Investors Relations Officer

Murilo Hyai

Investors Relations Manager

Email:

[email protected]

Phone:

+55 (11) 3371-4188