31 12-2010 - 4 q10 earnings release

1

4Q10 Earnings Release

SONAE SIERRA BRASIL ANNOUNCES

ADJUSTED EBITDA OF R$141.4

MILLION IN 2010, AN INCREASE OF

42.1% OVER 2009

São Paulo, March 28, 2011 – Sonae Sierra Brasil S.A.

(BM&FBovespa: SSBR3), one of Brazil’s leading shopping

mall developers, owners and managers, announces today

its results for the fourth quarter (4Q10) and full year of

2010. The financial and operating information outlined

below are based on amounts consolidated in accordance

with accounting policies adopted in Brazil and in accordance

with the International Financial Reporting Standards (IFRS)

issued by the International Accounting Standards Board -

IASB, and correspond to the comparison of the results

obtained in 2010 with the previous year, also adjusted to

the new accounting standard.

Highlights

The Company’s Net Revenue increased 7.7% in the

4Q10 and 20.0% in 2010, totaling R$ 185.0 million.

Adjusted EBITDA had a significant increase of 19.4% in

4Q10 and 42.1% in 2010, totaling R$ 141.4 million.

The adjusted EBITDA Margin reached an impressive

level of 76.4% in 2010 compared to 64.6% in 2009.

Adjusted FFO increased by 30.7% in 4Q10 and 60.2%

in 2010, reaching R$ 124.6 million.

The occupancy rate of our shopping malls reached

98.0% in 2010 compared to 97.2% in 2009.

Same-store sales (SSS) had a 9.5% growth in 2010.

Same-store rent (SSR) had a significant growth of

8.0% in 2010.

Investors

Relations

Carlos Alberto Correa

Investors Relations Officer

Murilo Hyai

Investors Relations Manager

Email:

[email protected]

Phone:

+55 (11) 3371-4188

4Q10 CONFERENCE CALLS

Portuguese

March 30, 2011

9 am (New York time)

10 am (Brasilia Time)

Phone: (55 11) 2188-0155

Code: Sonae Sierra Brasil

English

March 30, 2011

10.30 am (New York time)

11.30 am (Brasilia Time)

Phone: (1 412) 317-6776

Code: Sonae Sierra Brasil

2


In November, we opened with great success the first expansion of Parque D. Pedro

Shopping, which represented an increase of approximately 5.4 thousand sqm of

GLA, bringing this shopping mall to a total of 121.0 thousand sqm of GLA, which

already was one of the largest shopping malls not only in Brazil but also in all of

Latin America.

In February 2010, we began construction of Uberlândia Shopping in the city of

Uberlândia (MG), and in September 2010 we started construction of Boulevard

Londrina Shopping in Londrina (PR). These two new shopping malls should add

approximately 91.4 thousand sqm of total GLA and 84.0 thousand sqm of owned

GLA to our portfolio.

In 2010 we also started the construction for the expansion of Shopping Metrópole.

Financial Indicators

(R$ million) 4Q10 4Q09 % 2010 2009 %

Net Revenue 52.1 48.4 7.7% 185.0 154.1 20.0%

EBITDA 41.1 32.9 25.1% 138.9 97.4 42.6%

EBITDA Margin 78.8% 67.8% +1.099 bps 75.1% 63.2% +1.188 bps

Adjusted EBITDA 41.2 34.5 19.4% 141.4 99.5 42.1%

Adjusted EBITDA Margin 79.0% 71.2% +780 bps 76.4% 64.6% +1.186 bps

Funds From Operations (FFO) 36.5 26.3 38.4% 122.1 75.7 61.3%

FFO Margin 69.9% 54.4% +1.555 bps 66.0% 49.1% +1.688 bps

Adjusted FFO 36.6 28.0 30.7% 124.6 77.8 60.2%

Adjusted FFO Margin 70.1% 57.8% +1.235 bps 67.3% 50.5% + 1.686 bps

Net Operating Income (NOI) 51.1 43.8 16.7% 167.4 128.3 30.5%

Operating Indicators

4Q10 4Q09 % 2010 2009 %

Total GLA ('000 sqm) 350.1 343.5 1.9% 350.1 343.5 1.9%

Owned GLA ('000 sqm) 203.7 200.0 1.8% 203.7 200.0 1.8%

Number of shopping malls 10 10 0.0% 10 10 0.0%

Sales (R$ million) 1,119 982 14.0% 3,545 3,041 16.6%

Sales/sqm (monthly average) 1,292 1,032 25.2% 904 832 8.7%

Occupancy rate (eop) 98.0% 97.2% +77 bps 98.0% 97.2% +77 bps

Cost of occupancy (% of sales) 8.1% 8.2% -0.1% 9.0% 9.0% 0.0%

SSS/sqm 1,122 1,028 9.1% 902 824 9.5%

SSS/sqm - Satellite stores 1,718 1,531 12.2% 1,447 1,303 11.1%

SSS/sqm - Anchor stores 760 720 5.5% 643 596 7.9%

SSR/sqm 61 55 9.5% 49 45 8.0%

SSR/sqm - Satellite stores 121 111 8.9% 100 93 8.1%

SSR/sqm - Anchor stores 23 21 11.4% 19 18 7.8%

Overdue Payments (25 days) 2.0% 3.6% -151 bps 2.5% 4.4% -185 bps

3


MESSAGE FROM MANAGEMENT

In 2010 Sonae Sierra Brasil maintained a strong trajectory of growth: consolidated

net revenues for the year totaled R$ 185.0 million, which represents a 20.0% increase

over 2009. Our adjusted consolidated EBITDA presented a significant growth of 42.1%

in 2010 over 2009, reaching R$ 141.4 million, while the adjusted EBITDA margin

reached 76.4%. The adjusted consolidated FFO totaled R$ 124.6 million in 2010,

which was also a significant increase of 60.2% over 2009 with a margin of 67.4% on

net revenue. Our results in 2010 were largely a result of the performance of our

shopping malls especially with the contribution of the first full year of operations of

Manauara Shopping in Manaus. Opened in April 2009, this shopping mall with 47.0

thousand sqm of GLA, closed 2010 with 99.7% of its GLA occupied and it is already

one of the leading shopping malls of our portfolio. The net income attributed to the

shareholders reached R$ 139.2 million in 2010, from R$ 152.4 million in 2009. This

decrease is mainly attributed to lower gain in investment properties in 2010 due to

the extraordinary gain in 2009 from the opening of Manauara Shopping, following the

new accounting standards (IFRS) adopted by the Company. In fact, if we disregard

the net of taxes impact of fair market value of the investment properties, the growth

of net income would be significant.

In terms of new developments, the Company continues to follow the plans previously

announced. In February 2010 we started the construction of Uberlândia Shopping and

the construction of Boulevard Londrina Shopping started in September. Uberlândia

Shopping, which is scheduled to open in the second half of this year, already had 77%

of its GLA leased as of December 2010. Boulevard Londrina, with an opening date

scheduled for the second half of 2012, had already signed leases representing 64% of

its GLA by the end of 2010. When completed, these two new projects will add about

91.4 thousand sqm of total GLA and 84.0 thousand sqm of owned-GLA to our

portfolio. Also, in November 2010 we opened with great success the first expansion

of Parque D. Pedro Shopping Mall, which represented an increase of approximately 5.4

thousand sqm of GLA for this mall. It is noteworthy that this expansion opened with

100% of its stores leased, which increased the total GLA of Parque D. Pedro to 121.0

thousand sqm, reinforcing its position as one of the largest shopping malls not only in

Brazil but in all of Latin America. Finally, construction for the expansions of Metrópole

Shopping in the city of S. Bernardo do Campo in the greater metropolitan area of São

Paulo started in the fourth quarter of 2010.

According to the leverage strategy established for the development of new projects,

the Company negotiated bank loans for the projects of Uberlândia and Londrina. In

the first case a loan contract was signed with Banco Bradesco for R$ 81.2 million with

a 15 year term (2 year grace period). A separate loan was contracted with Banco

4


Bradesco for the Boulevard Londrina Shopping of R$ 120.0 million also with a maturity

of 15 years (2 year grace period).

Also during this year the Company prepared for its IPO, which was successfully

concluded by the listing of our shares on BM&F BOVESPA in the first quarter of 2011,

raising a total of R$ 465.0 million. This transaction broadened our shareholder base

and provided the resources necessary to continue investing in our growth strategy.

We remain confident in our strategy to develop market dominant shopping malls

primarily focused on the middle class, which is a segment of population experiencing

strong growth and already represents the most significant portion of consumers in the

Company's current portfolio. To do so, we not only count on the experience gained by

our management team at different levels, but also on the important contribution in

terms of expertise of our controlling shareholders Sonae Sierra SGPS and Developers

Diversified Realty — two international specialists in the shopping mall industry with a

solid reputation in their respective markets.

Despite the outlook for the Brazilian economy pointing to a more modest scenario

than that seen in 2010, we remain optimistic in the Company's good performance in

2011. Besides the prospect of maintaining good performance from the current

operating properties, we also are forecasting the effects of the contribution resulting

from the maturation of Manauara Shopping and the first expansion of Parque D.

Pedro. Furthermore, we also will have the effects expected from the opening of

Uberlândia Shopping as well as the contribution of expansions underway at Shopping

Metrópole and Shopping Campo Limpo, all of which we expect to open during the

second half of the year.

We also expect that during the current year the construction of Shopping Passeio das

Águas will start in the city of Goiania. The planning and licensing phase of this project

has been completed and is now in the pre-leasing process. Its opening is planned for

the year 2013.

Finally, on behalf of the Management of Sonae Sierra Brasil we would like to thank all

of our shareholders, employees, tenants, suppliers, banks and other partners for their

collaboration and the trust shown in us.

The Management

5


DESCRIPTION OF BUSINESS

Sonae Sierra Brasil S.A. is a company specialized in the shopping center business and

counts on the expertise of its management team and its international controlling

shareholders: the European group Sonae Sierra and the U.S. company Developers

Diversified Realty (NYSE: DDR), both companies that have deep experience in the

development, ownership and management of shopping centers.

We are one of the leading real estate developers, owners, and operators of shopping

malls in Brazil. Through our integrated business model, we work with all phases of the

business, including development (which covers all stages of the selection of sites, the

licensing process, design and control of construction) as well as with the management

and leasing of properties, asset management, and marketing services.

We hold a controlling interest in the majority of the shopping malls in our portfolio and

manage all of them. On December 31, 2010, we had a weighted average ownership

interest of 58.2% in the ten operating shopping malls in our portfolio, representing

203.7 thousand sqm of owned GLA and control in terms of ownership of six of the ten

shopping malls. We estimate approximately 100.9 million visits to our malls in 2010

and 92.6 million visits during the year of 2009.

OUR PORTFOLIO

Our portfolio is comprised of ten shopping malls in operation as follows: (i) eight

shopping malls located in the state of São Paulo, which is the most prosperous and

economically developed state of Brazil; (ii) one shopping mall located in Brasília,

Federal District; and (iii) one shopping mall located in the city of Manaus, the capital

of the state of Amazonas and the largest population density in the state and in the

north region of Brazil. Our portfolio includes some of the most prominent shopping

malls in operation in Brazil. For example, Parque D. Pedro Shopping, located in the

city of Campinas, has 121.0 thousand sqm of GLA and is one of the largest shopping

malls in Brazil in terms of GLA according to data provided by ABRASCE. Parque D.

Pedro had its area increased with the opening of its first expansion of 5.4 thousand

sqm of GLA in November 2010.

Additionally, we are in the process of building three new shopping malls in three

major cities in Brazil: (i) Uberlândia, the second most populous city in the state of

Minas Gerais; (ii) Londrina, the second largest city in the state of Paraná; and (iii)

Goiania, the state capital of Goiás. These three cities are important centers for the

agribusiness and services sectors which have experienced strong demographic and

economic growth. The selection of these cities for building new shopping malls fits into

6


our preferred strategy of growth through potentially market dominant shopping malls,

and they meet our requirement in terms of per capita income and population density.

We estimate that the combined GLA from these three shopping malls is approximately

170.0 thousand sqm.

The map below shows the location of our Brazilian malls. All figures related to GLA

and the Company’s interests are based on positions at the close of 2010, except

where indicated otherwise:

11

12

13

7

10

4

51

8

93

26

Shopping Centers in Operation

City State Stores Ownership

1 Parque D. Pedro Campinas SP 406 121.0 51.0% 61.7 95.2%

2 Boavista Shopping São Paulo SP 148 16.0 100.0% 16.0 98.6%

3 Penha Shopping São Paulo SP 198 29.6 73.2% 21.7 99.5%

4 Franca Shopping Franca SP 101 18.1 67.4% 12.2 100.0%

5 Tivoli Shopping Santa Barbara d'Oeste SP 147 22.1 30.0% 6.6 100.0%

6 Metrópole Shopping São Bernardo do Campo SP 152 25.0 * 100.0% 25.0 99.3%

7 Pátio Brasil Brasília DF 235 28.8 10.4% 3.0 98.7%

8 Plaza Sul Shopping São Paulo SP 217 23.1 30.0% 6.9 99.9%

9 Campo Limpo Shopping São Paulo SP 127 19.9 20.0% 4.0 99.9%

10 Manauara Shopping Manaus AM 235 46.7 100.0% 46.7 99.7%

Total 1,966 350.1 58.2% 203.7 98.0%

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

Projects under Development

City State

11 Uberlândia Shopping Uberlândia MG 43.6

12 Boulevard Londrina Shopping Londrina PR 47.8

13 Passeio das Águas Shopping Goiânia GO 78.1

GLA

('000 sqm)

Owned GLA

('000 sqm)

Occupancy

Rate

(% GLA)

GLA

('000 sqm) Ownership Projected Opening

100.0% 2H11

84.5% 2H12

100.0% 2013

7


CORPORATE STRUCTURE

The organizational chart below shows the simplified structure of our companies and

Shopping Malls on December 31, 2010:

OUR STRATEGY

Our strategy focuses on profitably increasing our portfolio and maintaining our

position as one of the leading developers, owners, and managers of shopping malls in

Brazil, seeking to provide superior returns to our shareholders in a sustainable and

responsible way. We intend to achieve our goals by implementing the following

strategies:

Passeio das Águas

(Goiânia)

Under development

FII Shopping

Parque D.

Pedro

Pátio

Boavista

Ltda.

Pátio Penha

Shopping

Ltda.

Sierra

Enplanta

Ltda.

Pátio São

Bernardo

Ltda.

Campo

Limpo Emp.

E Part. Ltda.

Pátio

Sertório Ltda.

Pátio

Londrina

Ltda.

Pátio

Uberlândia

Ltda.

Pátio Goiânia

Ltda.

Sierra

Investimentos

Brasil Ltda.

100,0%

100,0%

Unishopping

Administradora

Unishopping

Consultoria

85,0% 100,0% 100,0% 73,2% 10,4% 30,0% 67,4% 30,0% 100,0% 100,0% 84,5% 100,0% 100,0%

60,0% 100% 100% 100,0% 100,0% 20,0% 100,0% 100,0% 100,0% 100,0%

100%

Non operating as of the date of this document

Pátio

Campinas

Shopping

100,0%

8


Focus on creating value through organic growth. Our growth strategy is based

on two main sources: (i) the first represents building new market dominant shopping

malls that are able to establish and maintain a solid competitive position based on

certain factors such as population density, purchasing power of the potential

customers, and unserved consumer demand; and (ii) the second is related to the

expansion and/or remodeling of existing shopping malls by including new tenants,

features and attributes in order to increase their market share.

Acquisition of additional stakes in the properties of our portfolio. We plan on

analyzing opportunistic acquisitions at reasonable prices of additional ownership

interests in the shopping malls already part of our portfolio. In parallel, and whenever

opportunities arise that fit our strategy, we will analyze potential acquisitions at

attractive pricing of controlling interests in shopping malls that are not part of our

portfolio, or at least a strategic shareholding to possibly allow us to eventually acquire

control and to ensure that we control the management of the property.

Parque D. Pedro Food Court Manauara Shopping

ECONOMIC SCENARIO

The macroeconomic scenario in 2010 provided very favorable conditions for the

growth of retailing in Brazil, as well as our Company.

Brazil's GDP increased significantly in 2010 with a growth of 7.5% over 2009 driven

largely by the growing consumption of the middle class. The volume of retail sales

showed a significant growth of 10.9% in 2010 while nominal sales increased by

14.5%. The sales recorded by retailers present in our malls grew even more, showing

an increase of 16.6% in 2010 over sales in 2009. The unemployment rate of the

economically active population measured by IBGE was 5.3% at the end of 2010, the

lowest level recorded since the beginning of this study's publication in March 2002,

while real average earnings for 2010 increased by 5.9% in comparison with 2009.

This growth, however, has placed pressure on consumer prices with inflation reaching

5.9% in 2010 against 4.3% in 2009, forcing the Central Bank to take a more

9


restrictive stance and raise the SELIC interest rate from 8.75% to 10.75% at the end

of 2010.

We believe that, despite signs pointing to an increase in inflation, the economic

scenario should continue providing favorable conditions for the growth of national

retail sales, as well as our activities.

EFFECTS OF THE INITIAL ADOPTION OF IFRS

Sonae Sierra Brasil prepared its consolidated financial statements in accordance with

international financial reporting standards (IFRS) issued by the International

Accounting Standards Board - IASB. It should be pointed out that during the years

2009 and 2010, Comissão de Valores Mobiliários (CVM) approved several technical

pronouncements, interpretations, and technical orientations issued by the Comitê de

Pronuncimantos Contábies (CPC) that amended certain accounting policies previously

adopted in Brazil, effective beginning January 1, 2010 and retroactive to January 1,

2009 (transition date) for comparison purposes. The financial statements for the year

ended December 31, 2010 were prepared in accordance with the policies approved by

CVM and the financial statements for the year ended December 31, 2009 and opening

balances as at January 1, 2009 were adjusted and reclassified in order to consider the

application of these policies to provide a consistent comparative presentation.

The Company presents below the main effects and adjustments made in accordance

with the new accounting pronouncements affecting the Company’s financial

statements:

Investment Properties - CPC 28

Under CPC 28, properties held to earn rentals or for capital appreciation or both can

be recognized as investment property. Investment property was initially measured at

cost. The Company’s management decided to adopt the fair value method to reflect its

business.

The measurement of fair value of our properties is made on a quarterly basis, and is

reported in our quarterly financial statements.

The fair value of each investment property in operation and in development was

determined based on a discounted cash flow valuation prepared by an independent

external appraiser (Cushman & Wakefield).

10


Some of the main assumptions for the valuation were:

10 year projection;

Perpetuity calculation at year 11;

10-year discount rate ranging from 12.75% to 14.00% (depending on the

asset);

Exit yield ranging from 8.25% to 9.50% (depending on the asset);

0.0% real growth rate assumed for perpetuity;

Based on this valuation analysis, the fair value of our investment properties totaled R$

2.2 billion as of December 31, 2010.

For further details, please refer to our 2010 Financial Statements, note 11.

Reversal of net deferred charges and prepaid commissions - CPC 37

In accordance with the instructions for the initial adoption of the IFRS the Company

eliminated deferred charges and the amortization of deferred charges from the income

statement. In addition, prepaid commission expenses, which were previously recorded

in the assets, were reverted and the full expense is now in the income statements in

the year the cost was incurred. For more details of the impacts of the IFRS

adjustments please see our 2010 Financial Statements, note 4.

11


FINANCIAL HIGHLIGHTS

Gross Revenue

Sonae Sierra Brasil’s gross revenue totaled R$ 57.3 million in 4Q10, an increase of

8.7% over the same period of the previous year. In 2010, gross revenues for the year

reached R$201.6 million, 19.4% higher than 2009. The increase in revenue was

driven by growth in rental revenue mainly attributed to the first full year of operations

of Manauara Shopping, which was opened in April 2009, and by rental contract

adjustments for the other properties in our portfolio. Another factor that contributed

to the growth in revenue of 2010 was the significant increase in revenue from

parking, which totaled R$ 16.6 million in 2010, 150.2% more than 2009, mainly due

to the introduction of parking charges at Parque D. Pedro in September 2009 and at

Manauara in the middle of 2010.

78%

11%

4%

6% 1%

2009

79%

8%

8%

5%

2010

Rent

Service revenue

Parking revenue

Key Money

Other revenue

Gross Revenue Breakdown

Gross Revenue (R$ '000)

(R$ thousand) 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%

12


Cost and Expenses

Costs and expenses totaled R$ 12.2 million in 4Q10, a 19.6% decrease from 4Q09. In

2010, Cost and Expenses for the year totaled R$ 50.7 million, 9.3% lower than 2009.

This reduction can be attributed mainly to a decrease in personnel costs, which totaled

R$ 16.1 million in 2010, 18.3% less than in 2009, as a result of lower commissions

paid to real estate brokers, in addition to non-recurring severance costs incurred in

2009 relating to former members of senior management.

It worth noting that occupancy costs (vacant stores) fell by R$1.8 million, or 30.2%,

to R$4.1 million in 2010, due to higher occupancy, particularly in Manauara, Penha,

Franca Boavista and Parque D. Pedro.

Changes in Fair Value of Investment Properties

In December 2010, Sonae Sierra Brasil adopted the IFRS, under which, the Company

opted to value its investment properties at fair value. Thus, the gains and losses

resulting from changes in fair market value of the properties are recorded in the

Change in Fair Value of Investment Properties account, which totaled R$ 68.7 million

in 4Q10 and R$ 142.7 million for the year 2010 compared to R$ 226.7 million in 2009.

The reduction in 2010 when compared to 2009 is due primarily to the extraordinary

gain recognized in 2009 with the opening of Manauara Shopping.

Expenses (R$ '000)

4Q10 4Q09 % 2010 2009 %

Depreciation and

amortization378 332 13.9% 1,210 1,206 0.3%

Personnel 4,554 7,226 -37.0% 16,075 19,676 -18.3%

Outsourced services 1,882 59 3089.8% 9,829 6,906 42.3%

Occupancy cost (vacant

stores)856 1,275 -32.9% 4,070 5,828 -30.2%

Cost of contractual

agreements with tenants514 587 -12.4% 1,873 2,340 -20.0%

Reversal of the allowance

for doubtful lease

receivables

(461) (234) 97.0% (2,171) (99) 2092.9%

Other 4,477 5,929 -24.5% 19,815 20,018 -1.0%

Total 12,200 15,174 -19.6% 50,701 55,875 -9.3%

Classified as:

Cost of rentals and services 7,643 11,491 -33.5% 34,738 41,761 -16.8%

Operating expenses 4,557 3,683 23.7% 15,963 14,114 13.1%

12,200 15,174 -19.6% 50,701 55,875 -9.3%

13


Other Net Operating Revenue

Other net operating revenue totaled R$ 585.0 thousand in 4Q10 and R$ 4.2 million in

2010, which is largely a result of the receipt of R$ 2.5 million for the minimum yield

guaranty paid by the real estate investment fund, FII Parque D. Pedro Shopping

Center, to quota holders.

Net Financial Result

The consolidated financial result in 4Q10 was a net financial income of R$ 268.0

thousand and a net financial expense of R$ 4.4 million for the year 2010, a substantial

improvement over the R$ 11.9 million expense recorded in 2009, primarily driven by

positive exchange rate variations related to the loan with the parent company, Sierra

Brazil 1 BV.

Net Income

Net Income totaled R$ 46.1 million in 4Q10, a 6.3% increase over 4Q09 and R$ 139.2

million for the year 2010 versus R$ 152.4 million in 2009. It is worth noting, however,

that the Net Income is largely influenced by the Change in Fair Value of Investment

Properties and in 2009 there was the extraordinary gain related to the opening of

Manauara Shopping.

Net Operating Income (NOI)

Consolidated NOI, considering 100% of Parque D. Pedro’s NOI and weighted by Sonae

Sierra Brasil’s ownership in the other operating malls totaled R$ 51.1 million in 4Q10,

a 16.7% increase over 4Q09. In the year 2010, Consolidated NOI reached R$ 167.4

million in 2010, a 30.4% increase over 2009.

Net Operating Income - NOI (R$ million)

4Q10 4Q09 % 2010 2009 %

Rent 45.4 41.5 9.5% 158.2 132.4 19.5%

Key Money 2.7 2.3 17.4% 10.4 9.2 12.6%

Parking 5.7 3.3 72.7% 16.6 6.6 150.2%

Other Revenues 0.4 1.0 0.0% 0.8 2.2 -63.0%

Total Revenues 54.2 48.1 12.8% 186.1 150.4 23.7%

(-) Malls' Operating Expenses 3.1 4.3 -27.6% 18.7 22.1 -15.5%

NOI 51.1 43.8 16.7% 167.4 128.3 30.4%

14


Adjusted EBITDA

Adjusted EBITDA (adjusted for non-recurring expenses) increased by 19.4% in 4Q10

to R$ 41.2 million and 42.1% for the year 2010 reaching R$ 141.4 million, while the

Adjusted EBITDA margin reached 76.4% in 2010, compared to 64.6% in 2009.

Adjusted Funds From Operations (FFO)

Adjusted FFO (adjusted for non-recurring expenses) totaled R$ 36.6 million in 4Q10

and R$ 124.6 million in 2010, an increase of 60.2% over 2009 with a margin of

67.4% over net revenue in 2010, compared to 50.5% in 2009.

The reconciliation of the operating income before financial results with the EBITDA,

adjusted EBITDA, FFO, and Adjusted FFO is shown below:

34.5 41.2

99.5

141.4

4Q09 4Q10 2009 2010

Adjusted EBITDA (R$ million)

19.4%

42.1%

28.0 36.6

77.8

124.6

4Q09 4Q10 2009 2010

Adjusted FFO (R$ million)

30.7%

60.2%

15


Cash and Cash Equivalents and Debt

Cash and cash equivalents, which comprises cash, banks and financial investments,

declined by R$ 24.7 million, from R$ 86.3 million on December 31, 2009 to R$ 61.6

million on December 31, 2010. The main transactions impacting cash and cash

equivalents were (i) new loans totaling R$ 77.3 million and the settlement of R$59.0

million; and (ii) the cash investments in properties in the amount of R$118.0 million,

basically due to the construction and renovation of the Company’s malls. The

remaining net variations were chiefly related to operating results in 2010.

Adjusted EBITDA and

Adjusted FFO Reconciliation

(R$ million) 4Q10 4Q09 % 2010 2009 %

Net Revenue 52,1 48,4 7,7% 185,0 154,1 20,0%

Operating income before

financial result 109,7 99,0 10,8% 282,0 325,0 -13,2%

Depreciation and amortization 0,4 0,3 13,8% 1,2 1,2 0,0%

Gain from fair value of investment

properties (69,0) (66,5) 3,8% (144,3) (228,8) -36,9%

EBITDA 41,1 32,9 25,1% 138,9 97,4 42,6%

Non-recurring expenses 0,1 1,6 -93,5% 2,5 2,1 19,0%

Adjusted EBITDA 41,2 34,5 19,4% 141,4 99,5 42,1%

EBITDA Margim 78,8% 67,8% +1,099 bps 75,1% 63,2% +1.188 bps

Adjusted EBITDA Margin 79,0% 71,2% +780 bps 76,4% 64,6% +1.186 bps

EBITDA 41,1 32,9 25,1% 138,9 97,4 42,6%

Net financial result 0,3 (2,6) -110,4% (4,4) (11,9) -63,0%

Current income and social

contribution taxes (4,9) (3,9) 24,8% (12,4) (9,8) 26,5%

- - FFO 36,5 26,3 38,4% 122,1 75,7 61,3%

Non-recurring expenses 0,1 1,6 -94% 2,5 2,1 19,0%

Adjusted FFO 36,6 28,0 30,7% 124,6 77,8 60,2%

FFO Margin 69,9% 54,4% + 1.555 bps 66,0% 49,1% +1.688 bps

Adjusted FFO Margin 70,1% 57,8% +1.235 bps 67,4% 50,5% +1.686 bps

16


Considering the profile of our debt, our cash flow, retained earnings, the proceeds

from the company's IPO in 2011, and our liquidity position, we believe that we are in

a comfortable situation in terms of capital resources that are sufficient to cover our

investment plan, expenses, debts, and other amounts to be paid in the coming years.

SHOPPING CENTERS’ SALES PERFORMANCE

Sales in the Company’s malls totaled R$ 1,119 million in 4Q10, a 14.0% increase over

the same period in 2009, and R$3,545 million for the year 2010, 16.6% higher than in

2009.

The best performing malls were Manauara Shopping, Franca Shopping, Boavista

Shopping and Penha Shopping, with respective sales growth of 97.5%, 22.5%, 18.1%

and 16.9%. The excellent growth recorded by the Manauara mall was partially due to

2010 being its first full year of operations, but also reflected its accelerated maturity,

while the strong performance of Franca Shopping, Boavista Shopping and Penha

Shopping reflected the reduction in their vacancy rates over the previous year.

OPERATING HIGHLIGHTS

The operating income of Sonae Sierra Brasil in 2010 reflects the growth trend of the

Company before a very favorable period for retail and the Brazilian shopping malls

sector. At the end of 2010, the occupancy rate in our shopping centers reached 98.0%

of the GLA, compared to 97.2% at the end of 2009. The same-store sales (SSS)

recorded a growth of 9.5% during the period, while the same-store rent (SSR)

recorded an increase of 8.0%.

7.2 9.7 27.1 27.1 26.4

104.3

2011 2012 2013 2014 2015 2016 and on

Bank Loans Debt Amortization Schedule (R$ million)

17


Occupancy Rate

Same Store Sales and Same Store Rent

ONGOING PROJECTS

Sonae Sierra Brasil currently has eight ongoing projects, comprised of three greenfield

projects and five expansions, which should increase owned GLA by approximately

92% to 392.0 thousand sqm by 2013. It is worth noting that this substantial growth

includes only those projects already in our pipeline and excludes future projects yet to

be announced.

97.3%

96.3%

97.0%97.2%

98.3% 98.5% 98.4%98.0%

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

Occupancy (% GLA)

1,028 1,122

824 902

4Q09 4Q10 2009 2010

SSS/sqm

9.1%

9.5%

55 61

45 49

4Q09 4Q10 2009 2010

SSR/sqm

9.5%

8.0%

18


NEW PROJECTS (GREENFIELD)

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

to become the leading malls in their regions. Based on this strategy, we have three

such projects in our portfolio. Construction on two of these – Uberlândia Shopping and

Boulevard Londrina Shopping – is already under way and a high percentage of leasing

contracts have already been signed (77% and 64% of GLA, respectively).

Construction of the third mall, Passeio das Águas Shopping (in Goiânia), is scheduled

to begin in 2011.

Uberlândia Shopping: Construction of this mall, located in Uberlândia, Minas Gerais,

began in February 2010 and opening is scheduled for the second half of 2011.

Approximately 77% of GLA was already leased as of December 31, 2010.

Uberlândia Shopping Project Illustration

204

39210

3

13

44

40

78

2010 2011 2012 2013 Total

Owned GLA Growth ('000 sqm)

Greenfields Expansion

Uberlândia

Londrina

Goiânia

Metrópole (I)

PDP (II)

Metrópole (II)

Tívoli

Campo Limpo

+92%

City Uberlândia

State MG

Expected Opening 2H11

GLA (‘000 sqm) 43.6

SSB’s ownership 100%

Contracted GLA 77%

Uberlândia Shopping

19


Boulevard Londrina Shopping: Located in Londrina, the second largest city in the

state of Paraná, Boulevard Londrina Shopping began construction in September 2010,

and is scheduled to open in the second half of 2012. The mall’s GLA was already 64%

leased as of December 31, 2010.

Boulevard Londrina Project Illustration

Passeio das Águas Shopping: Construction of Passeio das Águas Shopping, located

in Goiânia, the capital and most important city of Goiás state, will begin in 2011, with

inauguration scheduled for 2013.

Passeio das Águas Project Illustration

City Londrina

State PR

Expected Opening 2H12

GLA (‘000 sqm) 47.8

SSB’s ownership 84.5%

Contracted GLA 64%

Boulevard Londrina Shopping

City Goiânia

State GO

Expected Opening 2013

GLA (‘000 sqm) 78.1

SSB’s ownership 100%

Contracted GLA 20%

Passeio das Águas Shopping

20


EXPANSIONS

Expansion of Parque D. Pedro Shopping

Although we believe Parque D. Pedro Shopping to be Brazil’s largest mall in terms of

contiguous GLA, we decided to expand it to meet growing demand. The expansion

was planned in two phases in distinct areas of the mall, the first of which opened on

November 3, 2010 and the second is scheduled for inauguration at the end of 2012.

The first expansion added approximately 8.0 thousand sqm of built-up area and 5.4

thousand sqm of GLA, with 32 satellite stores and two anchor stores. The new space

was designed for stores focusing on fashion, further strengthening the mall’s store

mix with brands such as Nike, Adidas, L’Occitane, Siberian, Crawford, Ecko Unltd and

consumer electronic retailer Fast Shop. We believe the new mix will increase Parque

D. Pedro Shopping’s competitive advantages in the region, offering new purchasing

options and strengthening our image, especially with consumers in the upper and

upper-middle income groups.

The second phase should add 8.0 thousand sqm of built-up area and approximately

5.4 thousand sqm of GLA.

We have received all the necessary approvals for the Parque D. Pedro Shopping

expansions.

Internal view of Expansion Aerial View of Parque D. Pedro and Expansion

21


Expansion and renovation of Shopping Metrópole – Phase I

We are currently renovating and expanding

Metrópole Shopping, given growing numbers

of visitors, which we expect to increase even

further with the addition of several high-end

commercial and residential towers adjacent

to the mall being developed by other

companies

Metrópole Project Illustration

Metrópole Expansion Construction Site

Campo Limpo Expansion

In early 2011, the Company also started the construction of the expansion of

Shopping Campo Limpo. The strong performance of this mall has mainly been fueled

by increased consumption of the lower income groups. The mall had an occupancy

rate of 99.9% as of December 31, 2010. The expansion, which is scheduled to open in

the second half of 2011, will add 2.5 thousand sqm of GLA.

Future Expansions

We plan to expand Tivoli Shopping due to its exceptionally healthy performance in

terms of revenue and occupancy. We therefore believe it is capable of supporting an

expansion of approximately 6.6 thousand sqm of GLA by the end of 2013.

In addition, we also plan to start construction for the second expansion of Parque D.

Pedro and for the second expansion in Metrópole in 2012. The second expansion of

Parque D. Pedro is expected to add 5.4 thousand sqm and should be opened by the

end of 2012 and the second expansion of Metrópole is expected to add 12.0 thousand

sqm and should be opened by the end of 2013.

22


REINVESTMENT OF PROFITS AND DIVIDEND PAYMENT

POLICY

In accordance with Brazilian Corporate Law, it is the responsibility of our shareholders

to establish at the Annual General Meeting (AGM) the allocation of our net income for

the year end and the distribution of dividends from the preceding fiscal year.

According to the Company’s bylaws, shareholders are entitled to a minimum

compulsory dividend of 25% of net income, adjusted according to Brazilian

Corporation Law.

Retained Earnings

Retained earnings, which correspond to the profits remaining after the allocation of

the legal reserve and the reserve of unrealized profits and the distribution of

dividends, has as its main objective to meet capital investment plans for expansion,

modernization and maintenance of the shopping malls in operation and to develop our

shopping centers projects. For the year end December 31, 2010 the Board of

Directors will propose to the Annual General Meeting of Shareholders the amount of

R$ 99,175 thousand in retained earnings.

Dividend distribution

According to the Company’s bylaws, shareholders are entitled to a minimum

compulsory dividend of 25% of net income adjusted according to Brazilian Corporation

Law. These dividends were recorded on December 31, 2010, as shown below:

Dividend distribution

(R$ thousand)

Net income for the year (a) 139,194

Legal reserve (5%) (6,960)

Dividend Calculation Basis 132,234

Minimum compulsory dividends - 25% before the formation of Reserve of

Unrealized Profits (b) 33,059

Unrealized profits -

Equity in earnings (136,255)

Unearned income (c) (136,255)

Profit achieved in the year, corresponding to the compulsory minimum

dividends payable (a) - (c) = (d) 2,939

Formation of reserve of unrealized profits (b) - (d) 30,120

12/31/2010

23


For year ended December 31, 2010, the compulsory minimum dividends totaled

R$ 2,939 thousand and the Board of Directors will propose to the Annual General

Meeting of Shareholders this amount to be distributed.

SERVICES OF INDEPENDENT AUDITORS - IN COMPLIANCE

WITH CVM INSTRUCTION No. 381/2003

The policies of the Company and its subsidiaries adopted in relation to hiring the

services of independent auditors have the purpose of ensuring that there is no conflict

of interest and/or loss of independence or objectivity of the auditors.

During the year ended December 31, 2010, the Company's independent auditors,

Deloitte Touche Tohmatsu, were hired for additional services to examine the financial

statements. These additional services relate to the process of the public offering and

distribution of the Company's primary shares and the respective fees totaled R$

453,000.

HUMAN RESOURCES

On December 31, 2010, our wholly owned subsidiaries, Unishopping Administradora

Ltda. Unishopping Consultoria Ltda., and Sierra Investimentos Ltda., had 146

employees (127 on December 31, 2009).

We grant the following benefits to all our employees: health insurance, life insurance,

and personal injury insurance. Beyond these benefits, managers and directors are

provided with benefits relating to auto and fuel costs. Benefits are granted based on

functional groups and are provided in accordance with our compensation policies.

We are registered in PAT (Worker’s Meal Program) and offer food vouchers for all our

employees.

We do not have an incentive compensation policy based on shares. However,

employees are eligible to receive short-term variable compensation based on

achieving individual KPIs. Executive officers are also entitled to long-term

compensation.

24


ENVIRONMENTAL SUSTAINABILITY

Activities related to the shopping mall segment in Brazil are subject to regulations and

licensing requirements as well as federal, state, and city environmental control. The

procedure for obtaining environmental licensing is necessary both for the initial

development and construction stages of each property as well as for any expansion of

the shopping centers, and the licenses granted must be periodically renewed.

In this sense we can affirm that we maintain high standards of environmental and

corporate responsibility as part of our goal to maintain sustainable development. We

have adopted environmental policies and practices that benefit the environment more

than those required by existing regulations that apply to us.

It should be made clear that we have been pioneers in developing new concepts of

safety systems and environmental practices. The Company also has received the ISO

14001:2004 certification in recognition of its management of environmental issues in

all the shopping malls in operation in our portfolio. Additionally, Parque D. Pedro

Shopping and Shopping Penha received the OHSAS 18001:2007 certification in

occupational health and safety in October 2008 and December 2009 respectively.

Shopping Plaza Sul was also recommended for OHSAS 18001.

SUBSEQUENT EVENTS

Reverse split of shares

The Extraordinary General Meeting of shareholders held on January 11, 2011

approved the reverse split of the common shares issued by the Company in the

proportion of 10 shares for 1 share of its kind, reducing the number of common

shares from 531,727,887 to 53,172,788, which were distributed among shareholders

in the same proportion owned by each of them prior to the reverse split. The

Company's capital was maintained at R$ 532.8 million.

Capital increase

On February 7, 2011, the Company's Board of Directors approved the capital increase,

which is still within the limit of authorized capital, from R$ 532.8 million to R$ 967.6

million, which is an increase of R$ 434.8 million done by subscribing and paying

21,739,130 common shares issued by the Company still under the primary public

distribution of shares at a subscription price of R$ 20.00 (twenty reais) per share

according to the Final Public Offering Memorandum of Primary Distribution of Common

25


Shares issued by Sonae Sierra Brasil S.A. ("Final Offering Memorandum"), as recorded

in the Brazilian Securities and Exchange Commission ("CVM").

On March 4, 2011, the Company's Board of Directors approved the capital increase,

which is still within the limit of authorized capital, from R$ 967.6 million to R$ 997.8

million, which is an increase of R$ 30.2 million done by subscribing and paying

1,511,913 common shares issued by the Company still under the primary public

distribution of shares due to the partial exercise of the Over-Allotment Option by the

Lead Manager in accordance with the provisions of the Underwriting Agreement,

Placement and Firm Guarantee Payment of Common Shares issued by Sonae Sierra

Brasil S.A. ("Underwriting Agreement") entered into on February 1, 2011 at the

subscription price of R$ 20.00 (twenty reais) per share.

Construction Loan

On January 15, 2011 the subsidiary Pátio Londrina Shopping Ltda. signed with Banco

Bradesco S.A. a contract to finance the construction of Shopping Londrina. This loan

of up to R$ 120 million has a fixed rate pegged to the Referential Rate - TR plus

10.90% per annum. The contract term is 15 years with a grace period of two years for

the portion of interest. After this period, the balance due is payable in up to 156

successive monthly installments. The loan is secured by a mortgage lien on the

shopping mall's property. The Company is the guarantor of this operation.

Settlement of the loan agreement with the associated company Sierra Brazil

1 BV

On February 8, 2011, the Company settled the debtor loan agreement with the

associated company Sierra Brazil 1 BV (the Company's majority shareholder),

amounting to R$ 76.2 million. The payment for this loan was already planned as part

of the disposition of resources from the Company's initial public offering as described

in the Final Public Offering Memorandum dated February 01, 2011.

26


GLOSSARY

GLA (Gross Leasable Area): Equivalent to the sum total of all the areas available for leasing in the shopping malls.

ABRASCE: Brazilian Shopping Mall Association.

BM&FBOVESPA: BM&FBovespa S.A. - Securities, Commodities and Futures Exchange.

CSLL: Social contribution tax on net income.

EBITDA: Operating income before financial result + depreciation and amortization - gain from fair value of investment properties

Adjusted EBITDA: EBITDA adjusted for the effects of non-recurring expenses effect

FFO (Funds from Operations): EBITDA +/- Net financial result – current income and social contribution taxes

Adjusted FFO: FFO adjusted for the effects of non-recurring expenses.

IFRS: International Financial Reporting Standards.

IGP-M: General Market Price Index, published by the FGV.

IPCA: Consumer Price Index, published by the IBGE.

Anchor Store or Large Anchors: Well-known stores with special marketing and structural features that serve to attract consumers, assuring continuous visitor flows

and uniform traffic in all areas of the mall.

Satellite Stores or Satellites: Small stores without special marketing or structural

features located around the anchor stores and aimed at general commerce.

NOI (Net Operating Income): Gross revenue from malls (excluding service

revenue) + parking revenue – mall operating expenses – provisions for doubtful accounts.

Novo Mercado: A special listing segment of the BM&FBOVESPA with special corporate governance rules determined by the Novo Mercado Regulations.

Shopping Mall: A shopping and entertainment center that unites businesses from a

diversified range of retail and service segments in a single site. Malls are subject to rigorous planning following careful studies of the consumption potential of the area they are intended to influence and serve.

SSR (same-store rent): Relation between invoiced rent for the same operation in

the current period compared to previous period.

27


SSS (same-store sales): Relation between sales for the same tenant in the current period compared to the previous period.

Occupancy Rate: Ratio between leased area and total GLA of each mall at the end of

each period.

28


APPENDICES

Consolidated Balance Sheet

(R$ thousand) 2010 2009 %

ASSETS

CURRENT

Cash and cash equivalents 61,566 86,252 -28.6%

Accounts receivable, net 21,650 18,003 20.3%

Taxes recoverable 9,659 7,367 31.1%

Advances to suppliers 183 188 -2.7%

Prepaid expenses 175 196 -10.7%

Other credits 5,801 3,139 84.8%

Total current assets 99,034 115,145 -14.0%

NON-CURRENT

Long-term receivables:

Restricted financial investments 557 418 33.3%

Accounts receivable, net 9,582 8,011 19.6%

Loans to condominiums 561 449 24.9%

Deferred income and social contribution taxes 13,590 16,829 -19.2%

Juducial deposits 3,584 2,877 24.6%

Other credits 2,461 1,563 57.5%

Related parties - 76 -100.0%

Investments 19,033 16,874 12.8%

Investment properties 2,181,412 1,889,175 15.5%

Fixed 4,532 3,468 30.7%

Intangible 873 299 192.0%

Total non-current assets 2,236,185 1,940,039 15.3%

TOTAL ASSETS 2,335,219 2,055,184 13.6%

29


Consolidated Balance Sheet

(R$ thousand) 2010 2009 %

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT

Loans and financing 7,171 65,763 -89.1%

Brazilian suppliers 15,807 10,791 46.5%

Taxes payable 6,602 4,472 47.6%

Salaries, wages and benefits 6,733 7,661 -12.1%

Technical structure 5,410 5,362 0.9%

Related parties 85,599 85,281 0.4%

Dividends payable 2,939 6,239 -52.9%

Other obligations 11,370 9,127 24.6%

Total current liabilities 141,631 194,696 -27.3%

NON-CURRENT

Loans and financing 194,677 117,725 65.4%

Key Money 11,838 7,170 65.1%

Accounts payable - land purchases 25,000 - 100.0%

Deferred income and social contribution taxes 278,943 229,811 21.4%

Provisions for contingencies 10,906 12,368 -11.8%

Provisions for variable compensation 427 1,005 -57.5%

Total non-current liabilities 521,791 368,079 41.8%

SHAREHOLDERS' EQUITY

Capital stock 532,845 529,784 0.6%

Capital reserve 96,198 90,817 5.9%

Profit reserve 648,344 512,089 26.6%

Equity attributable to owners of the parent company 1,277,387 1,132,690 12.8%

Advance for future capital increase - 1,784 -100.0%

Equity attributable to owners of the parent company

and advance for future capital increase1,277,387 1,134,474 12.6%

Minority interest 394,410 357,935 10.2%

Total shareholders' equity 1,671,797 1,492,409 12.0%

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,335,219 2,055,184 13.6%

30


Consolidated Income Statement

(R$ thousand) 4Q10 4Q09 % 2010 2009 %NET OPERATING REVENUE FROM RENT,

SERVICES AND OTHER 52,145 48,435 7.7% 185,009 154,141 20.0%

COST OF RENT AND SERVICES (7,643) (11,491) -33.5% (34,738) (41,761) -16.8%

GROSS PROFIT 44,502 36,944 20.5% 150,271 112,380 33.7%

OPERATING REVENUE (EXPENSES)

General and administrative (4,557) (3,683) 23.7% (15,963) (14,114) 13.1%

Outsourced services (1,318) (3) 43833.3% (5,315) (3,468) 53.3%

Legal fees (525) (333) 57.7% (3,712) (2,020) 83.8%

Provisions for doubtful accounts 461 234 97.0% 2,171 99 2092.9%

Other administrative expenses (3,175) (3,581) -11.3% (9,107) (8,725) 4.4%

Taxes (171) (544) -68.6% (1,925) (2,916) -34.0%

Equity income 664 812 -18.3% 2,696 2,662 1.3%

Gain from fair value of investment properties 68,681 65,977 4.1% 142,726 226,651 -37.0%

Other operating revenue (expenses), net 585 (508) -215.2% 4,163 347 1099.7%

Total operating revenue (expenses), net 65,202 62,055 5.1% 131,697 212,630 -38.1%

OPERATING INCOME BEFORE FINANCIAL

RESULT109,704 98,999 10.8% 281,968 325,010 -13.2%

NET FINANCIAL RESULT 268 (2,584) -110.4% (4,440) (11,917) -62.7%

INCOME BEFORE INCOME AND - - 0.0% - - 0.0%

SOCIAL CONTRIBUTION TAXES 109,972 96,415 14.1% 277,528 313,093 -11.4%

INCOME AND SOCIAL CONTRIBUTION TAXES

Current (4,915) (3,939) 24.8% (12,397) (9,797) 26.5%

Deferred (23,159) (19,477) 18.9% (52,371) (60,423) -13.3%

Total (28,074) (23,416) 19.9% (64,768) (70,220) -7.8%

NET INCOME 81,898 72,999 12.2% 212,760 242,873 -12.4%

INCOME ATTRIBUTABLE TO:

Owners of the parent company 46,122 43,398 6.3% 139,194 152,381 -8.7%

Minority interests 35,776 29,601 20.9% 73,566 90,492 -18.7%

31


Consolidated Cash Flow Statement

(R$ thousand) 2010 2009CASH FLOW FROM OPERATING ACTIVITIES

Net income for the year 212,760 242,873

Adjustments to reconcile net income to

net cash from (used in) operating activities:

Depreciation and amortization 1,210 1,206

Amortization of goodwill - -

Residual cost of written-off fixed assets 71 181

Residual cost of land sold - -

Unbilled revenue from rentals (1,571) (5,599)

Provisions for doubtful accounts (2,171) (99)

Provisions (reversal of) for contingencies (1,462) 560

Acrrual for variable compensation 1,373 4,180

Deferred income and social contribution taxes 52,371 60,423

Financial charges 10,871 16,788

Minority interest - -

Changes in fair value of investment property (142,726) (226,651)

Equity income (2,696) (2,662)

(Increase) decrease in operating assets: - -

Restricted investments (139) (418)

Accounts receivable (753) (413)

Loans to condominiums (112) 879

Taxes recoverable (2,292) (3,910)

Advances to suppliers 5 (91)

Prepaid expenses 21 (196)

Judicial deposits (707) (769)

Other (3,560) (3,971)

Increase (decrease) in operating liabilities:

Salaries, wages and benefits (2,879) 1,326

Brazilian suppliers (1,878) (3,415)

Taxes payable 2,130 1,076

Technical structure 4,716 4,574

Other obligations 2,243 7,249

Cash provided by (used in) operating activities 124,825 93,121

interest paid (18,643) (7,861)

Net cash from (used in) operating activities 106,182 85,260

CASH FLOW FROM INVESTMENT ACTIVITIES

acquisition or construction of investment property (117,617) (221,009)

Acquisition of fixed assets (1,197) (1,132)

Increase in intangible assets (681) (225)

Increase in deferred charges - -

Increase in capital invested - -

Proceeds from the sale of land and other fixed assets - -

Dividends received 537 296

Net cash used in investment activities (118,958) (222,070)

CASH FLOW FROM FINANCING ACTIVITIES

Capital increase 3,555 108,431

Advance for future capital increase - 1,784

Loans and financing raised 77,333 96,985

Loans and financings paid - principal (59,000) (62,666)

Interest on loans and financing paid - -

Dividends paid (3,136) -

Income distributed (27,435) (24,922)

Related parties (3,227) 76,008

Net cash from financing activities (11,910) 195,620

NET INCREASE (DECREASE) IN BALANCE OF CASH AND

CASH EQUIVALENTS(24,686) 58,810

CASH AND CASH EQUIVALENTS

At end of year 61,566 86,252

At beginning of year 86,252 27,442

NET INCREASE (DECREASE) IN BALANCE OF CASH AND

CASH EQUIVALENTS(24,686) 58,810

31 12-2010 - 4 q10 earnings release

Documents

4q10 earnings

sonae sierra

consolidated

annual general

shopping campo

largest shopping

social contribution

net operating