sonae sierra, s.g.p.s., s.a. and subsidiariesweb3.cmvm.pt/sdi/emitentes/docs/fsd543265.pdf · sonae...

31 December 2015Notes Restated (Note 3)

NON-CURRENT ASSETS:Investment properties 9 764,387 693,924Investment properties under development 9 41,346 46,471Property, plant and equipment 10 2,009 1,337Goodwill 11 4,274 4,274Intangible assets 12 2,001 2,706Investments in joint ventures and associates 5 and 6 1,169,528 998,812Shareholders 21 86,639 124,066Deferred tax assets 23 2,879 4,269Derivative financial instruments 19 1,491 -Other non current assets 13 3,644 3,443

Total non-current assets 2,078,198 1,879,302

CURRENT ASSETS:Trade receivables 14 21,156 21,637Shareholders 21 32,532 76Other receivables 15 12,164 11,525State and other public entities 26 6,445 5,196Other current assets 16 14,992 11,743Cash and cash equivalents 17 149,628 93,792

Total current assets 236,917 143,969

Assets classified as held for sale - 289,274

Total assets 2,315,115 2,312,545

EQUITY, NON-CONTROLLING INTERESTS AND LIABILITIES

EQUITY:Share capital 18 162,245 162,245Reserves 18 57,329 57,329Currency translation reserve (104,488) (169,785)Hedging reserve (1,145) (3,321)Retained earnings 864,275 750,028Consolidated net profit for the period attributable to the equity holders of Sonae Sierra 181,198 141,746

Equity attributable to the equity holders of Sonae Sierra 1,159,414 938,242

Non-controlling interests 8 508,485 519,322

Total equity 1,667,899 1,457,564

LIABILITIES:NON CURRENT LIABILITIES:

Bank loans - net of current portion 19 292,580 220,476Debentures loans - net of current portion 19 74,575 74,575Derivative financial instruments 19 1,319 7,117Shareholders 21 3,717 3,667Accounts payable to suppliers 25 72 64Other non current liabilities 22 8,671 8,575Provisions 29 260 114Deferred tax liabilities 23 125,101 106,209

Total non current liabilities 506,295 420,797

CURRENT LIABILITIES:Current portion of long term bank loans 19 28,146 120,177Short term bank loans and other borrowings 20 24,850 53,694Shareholders 21 3,764 3,864Accounts payable to suppliers 25 9,688 10,188State and other public entities 26 7,574 7,126Other payables 27 9,111 32,829Other current liabilities 28 56,435 57,309Provisions 29 1,353 1,771

Total current liabilities 140,921 286,958

Liabilities directly associated with assets classified as held for sale - 147,226

Total equity, non-controlling interests and liabilities 2,315,115 2,312,545

The accompanying notes form an integral part of these consolidated statements of financial position.

The Board of Directors

ASSETS31 December 2016

(Translation of the statement of financial position originally issued in Portuguese - Note 47)

SONAE SIERRA, S.G.P.S., S.A. AND SUBSIDIARIES

AS OF 31 DECEMBER 2016 AND 2015

(Amounts stated in thousands of Euro)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

2016 2015

Services rendered 30 179,460 191,895Variation in fair value of the investment properties 31 65,343 96,349Other operating revenue 32 3,682 11,180

248,485 299,424

External supplies and services (93,955) (94,179)Personnel expenses (45,738) (46,552)Depreciation and amortisation 10 and 12 (1,042) (1,130)Provisions and impairment 29 (2,267) (3,716)Impairment losses and write-off 33 (7,285) -Other operating expenses 34 (2,013) (3,616)

(152,300) (149,193)

96,185 150,231

Finance income 35 6,256 6,461Finance expenses 35 (17,178) (22,400)Share of results of joint ventures and associates 37 208,625 159,888Gains and losses on investments 36 35,711 (359)

Profit before income tax 329,599 293,821

Income tax 24 (24,400) (33,726)

Profit after income tax 305,199 260,095

Net profit after tax from discontinuing operations - -

Consolidated net profit for the period 305,199 260,095

Attributable to:Equity holders of Sonae Sierra 181,198 141,746Non-controlling interests 8 124,001 118,349

305,199 260,095Consolidated net profit per share:

Basic 43 5.57 4.36Diluted 43 5.57 4.36

The accompanying notes form an integral part of these consolidated statements of profit and loss.


Notes

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS



FOR THE PERIODS ENDED 31 DECEMBER 2016 AND 2015

(Translation of the statement of profit or loss originally issued in Portuguese - Note 47)


2016 2015

Consolidated net profit for the period 305,199 260,095

Changes in the currency translation differences 62,900 (80,852)Changes in the fair value of hedging instruments 2,824 6,323Deferred tax related to components of other comprehensive income (660) (1,553)Others - 153

Other comprehensive income for the period 65,064 (75,929)

Total comprehensive income for the period 370,263 184,166

Attributable to:Equity holders of Sonae Sierra 245,883 64,652Non-controlling interests 124,380 119,514

370,263 184,166

The accompanying notes form an integral part of these consolidated statements of comprehensive income.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Translation of the statement of comprehensive income originally issued in Portuguese - Note 47)



Notes

Net profit attributable to Non-controlling

Share Legal Translation Hedging Retained the equity holders Interests Notes capital reserves reserve reserve earnings of Sonae Sierra Total (Note 8) Total

Balance as of 1 January 2015 162,245 57,329 (88,933) (6,929) 677,953 96,311 897,976 409,317 1,307,293

Appropriation of consolidated net profit for 2014:Transfer to legal reserves and retained earnings - - - - 96,311 (96,311) - - -Dividends distributed - - - - (24,386) - (24,386) - (24,386)

- - - - 71,925 (96,311) (24,386) - (24,386)Currency translation differences - - (80,852) - - - (80,852) - (80,852)Fair value of hedging instruments 19 - - - 4,772 - - 4,772 1,551 6,323

23 - - - (1,164) - - (1,164) (389) (1,553)Capital increase/decrease - - - - - - (9,481) (9,481)Acquisitions/sale of subsidiaries effect - - - - - - (28) (28)Consolidated net profit for the period ended 31 December 2015 - - - - - 141,746 141,746 118,349 260,095Others - - - - 150 - 150 3 153

Balance as of 31 December 2015 162,245 57,329 (169,785) (3,321) 750,028 141,746 938,242 519,322 1,457,564

Balance as of 1 January 2016 162,245 57,329 (169,785) (3,321) 750,028 141,746 938,242 519,322 1,457,564

Appropriation of consolidated net profit for 2015:Transfer to legal reserves and retained earnings - - - - 141,746 (141,746) - - -Dividends distributed - - - - (24,711) - (24,711) (11,121) (35,832)

- - - - 117,035 (141,746) (24,711) (11,121) (35,832)Currency translation differences - - 62,898 2 - - 62,900 - 62,900Fair value of hedging instruments 19 - - - 2,312 - - 2,312 512 2,824

23 - - - (527) - - (527) (133) (660)Capital increase/decrease - - - - - - (124,101) (124,101)Acquisitions/sale of subsidiaries effect - - 2,399 389 (2,788) - 5 5Consolidated net profit for the period ended 31 December 2016 - - - - - 181,198 181,198 124,001 305,199Others - - - - - - - - -

Balance as of 31 December 2016 162,245 57,329 (104,488) (1,145) 864,275 181,198 1,159,414 508,485 1,667,899

The accompanying notes form an integral part of these consolidated statement of changes in equity.


Deferred tax in fair value of hedging instruments

Deferred tax in fair value of hedging instruments

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


ReservesEquity attributable to the equity holders of Sonae Sierra


(Translation of the statement of changes in equity originally issued in Portuguese - Note 47)


Notes

OPERATING ACTIVITIES:

Received from clients 185,420 193,667Paid to suppliers (95,436) (95,138)Paid to personnel (45,979) (46,320)

Flows from operations 44,005 52,209

(Payments)/receipts of income tax (5,579) (8,621)Other (payments)/receipts relating to operating activities (2,425) (4,166)

Flows from operating activities [1] 36,001 39,422

INVESTING ACTIVITIES:

Receipts relating to:

Investments 311,365 15,162Tangible fixed assets 663 20,426Interest income 3,268 5,448Dividends 30,863 16,284Other 319 346,478 - 57,320

Payments relating to:

Investments (41,527) (25,479)Tangible fixed assets (9,180) (26,304)Intangible fixed assets (101) (520)Other - (50,808) (242) (52,545)

Variation in Loans granted (8,243) (12,528)

Flows from investing activities [2] 287,427 (7,753)

FINANCING ACTIVITIES:


Bank loans 233,300 45,439Other - 233,300 - 45,439


Interest expenses (24,767) (25,516)Dividends (58,079) -Decrease of share capital - nominal value and discounts and premiums (126,239) (9,481)Bank loans (251,923) (38,001)Other - (461,008) - (72,998)

Variation in Loans obtained - others (10,996) 232

Flows from financing activities [3] (238,704) (27,327)

Variation in cash and cash equivalents [4]=[1]+[2]+[3] 84,724 4,342

Effect of exchange differences (35) (9)

Effect of the acquisitions and sales of companies:Project Guia (9) -Alverca - -Sierra Reval - -

Cash and cash equivalents transferred to assets held for sale - (11,036)

Cash and cash equivalents at the beginning of the year 17 64,948 71,651

Cash and cash equivalents at the end of the year 17 149,628 64,948

The accompanying notes form an integral part of these consolidated statements of cash flows.


2016 Restated (Note 3)


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Translation of the statement of cash flow originally issued in Portuguese - Note 47)


2015

SONAE SIERRA CONSOLIDATED ACCOUNTS 2016 1/68

SONAE SIERRA, SGPS, S.A. AND

SUBSIDIARIES

Notes to the consolidated financial statements

as of 31 December 2016

(Translation of notes originally issued in Portuguese – Note 47)

(Amounts stated in thousands of Euro - kEuro)

1 INTRODUCTION

SONAE SIERRA, S.G.P.S., S.A. (“the Company” or “Sonae Sierra”), which has its head office in Lugar do Espido, Via Norte, Apartado 1197, 4471-909 Maia – Portugal, is the parent company of a group of companies, as explained in Notes 4, 5 and 6 (“the Group”). The Group’s operations consist of investment, management, and development of shop-ping centres. The Group operates mainly in Portugal, Brazil, Spain, Greece, Germany, Italy, Romania, Colombia, Morocco, Algeria, Turkey and Netherlands. These financial statements are presented in Euro because that is the currency of the pri-mary economic environment in which the group operates. Foreign operations are includ-ed in accordance with the policy set out in Note 2.2.e).

2 PRINCIPAL ACCOUNTING POLICIES

The principal accounting policies adopted in preparing the accompanying consolidated financial statements are as follows:

2.1. Basis of preparation

The accompanying consolidated financial statements have been prepared according to the International Financial Report Standards (“IFRS”) as approved by the European Un-ion, applicable to economic years beginning on 1 January 2016. These correspond to the International Financial Reporting Standards (“IFRS”) issued by the International Account-ing Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”) or by the previous Standing Interpreta-tions Committee (“SIC”) and approved by the European Union. The accompanying consolidated financial statements have been prepared on a going con-cern basis and in accordance with the accrual basis of accounting, from the accounting


records of the companies included in the consolidation maintained according to the gen-erally accepted accounting principles in the countries of each company adjusted, in the consolidation process, to International Financial Reporting Standards (“IFRS”), as ap-proved by the European Union. New accounting standards and their impact in these consolidated financial statements Up to the date of approval of these consolidated financial statements, the European Un-ion endorsed the following standards, interpretations, amendments, and revisions with mandatory application to the economic year beginning on 1 January 2016:

These standards were applied for the first time by the Group in 2016 and there is no sig-nificant impact on the accounts resulting from their application. Up to the date of approval of these financial statements, the following standards and in-terpretations, with mandatory application in future reporting dates, have been endorsed by the European Union:

These standards, despite being endorsed by the European Union, have not been adopted by the Group in 2016 because their application is not yet mandatory. Nevertheless, no significant impacts are expected from its future adoption. The following standards and interpretations were issued by the IASB but have not yet been endorsed by the European Union:

Applicable forfinancial years

beginning on / after

Annual improvements to IFRS (2010-2012 cycle) 01-Feb-15Amendments to IAS 19 - Defined benefit plans: Employee contributions 01-Feb-15Amendments to IAS 16 and IAS 41 - Bearer plants 01-Jan-16Amendments to IFRS 11 - Accounting for acquisition of interests in joint operations 01-Jan-16Amendments to IAS 16 and IAS 38 - Clarification of acceptable methods of depreciation and amortization 01-Jan-16Annual improvements to IFRS (2012-2014 cycle) 01-Jan-16Amendments to IAS 1 - Improvements in disclosures 01-Jan-16Amendments to IAS 27 - Equity method in separate financial statements 01-Jan-16Amendments to IFRS 10, IFRS 12 and IAS 28 - investment entities: applying the consolidation exception 01-Jan-16



IFRS 9 - Financial instruments: amendements to IFRS9 and IFRS7 01-Jan-18IFRS 15 - Revenue from contracts with customers 01-Jan-18



IFRS 14 - Regulatory deferral accounts 01-Jan-16IFRS 16 - Leases 01-Jan-19Amendments to IAS 12: Recognition of deferred tax assets for unrealised losses 01-Jan-17Amendments to IAS 7: Disclosure initiative 01-Jan-17Clarifications to IFRS 15 Revenue from contracts with customers 01-Jan-18Amendments to IFRS 2: Classification and measurement of share-based payment transactions 01-Jan-18Amendments to IFRS 4: Applying IFRS 9 financial instruments with IFRS 4 insurance contracts 01-Jan-18Annual improvements to IFRS (2014-2016 cycle) 01-Jan-18IFRIC Interpretation 22 - Foreign currency transactions and advance consideration 01-Jan-18Amendments to IAS 40: Transfers of investmenty property 01-Jan-18


None of these standards have been adopted by the Group as they are not yet endorsed by the European Union. Nevertheless, no significant impact is expected from their future adoption.

2.2. Basis of Consolidation and investments in joint ventures and associates

The financial statements of the parent company and its subsidiaries, joint ventures and associates, included for the purpose of these consolidated financial statements, have been prepared up to 31 December 2016 and have been adjusted, where applicable, to ensure consistency with the Group’s accounting principles, described below.

a) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the parent-company (Sonae Sierra) and the entities controlled by Sonae Sierra (subsidiaries). Con-trol is achieved when the Company, has all of the following:

- power over the investee; - is exposed, or has rights, to variable returns from its involvement with the inves-

tee; and - the ability to use its power to affect its returns.

The Group reassesses whether it controls an entity if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than the majority of the voting rights of an entity, it has power over the entity when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the entity unilaterally. The Company considers all rele-vant facts and circumstances in assessing whether the Company’s voting rights in an entity are sufficient to give it power, including:

- the size of the Company’s holding of voting rights relative to the size and disper-sion of holdings of the other vote holders;

- potential voting rights held by the Company, other vote holders or other parties;

- rights arising from other contractual arrangements; and

- any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

As of 31 December 2016 and 2015 there were no entities to which these conditions ap-plied. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary, by using the full consolidation method. The purchase method of accounting is used when recording the acquisition of subsidiaries (Note 2.2.d)). The interests in the net assets of subsidiaries that do not belong to the Group (non-controlling interests) are presented within equity, separately from equity attributable to equity holders of the parent company, under the caption "Non-controlling interests”. Non-controlling interests consist of the amount of those interests at acquisition date


(Note 2.2.d)) and of the proportion in changes in equity of subsidiaries acquired after the purchase date. The net result and each component of comprehensive income are allocated to the Group and to the non-controlling interests in proportion to their holding (ownership interest), even if this results in a negative balance of non-controlling interests. All intercompany transactions (including gains/losses obtained in sales within the Group), balances and dividends distributed within the Group are eliminated in the consolidation process. When the Group loses control of a subsidiary, a gain or loss is recognised in the state-ment of profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest in the former subsidiary and (ii) the previous carrying amount of the assets (including good-will), and liabilities of the subsidiary and any non-controlling interests. The fair value of any investment retained in the former subsidiary at the date when control is lost is re-garded as the fair value on initial recognition for subsequent accounting under IAS 39, or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. The changes in ownership interest in the Group's subsidiaries that do not result in loss of control are recorded as equity transactions. The subsidiaries included in the consolidated financial statements by the full consolidation method are listed in Note 4.

b) Joint ventures and associates

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement instead of rights to the assets and obligations for the liabilities of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when deci-sions about the relevant activities require unanimous consent of the parties sharing con-trol. Associates are entities where the Group exercises significant influence. Significant influ-ence (presumed when the contribution is above 20%) is the power to participate in the financial and operating decisions of the entity, but do not hold the control on joint control over those decisions. Investments in joint ventures and associates are measured under the equity method, after initial recognition. Under the equity method, investments in joint ventures and associates are recognised at cost on acquisition, adjusted after the date of acquisition, by the amount corresponding to the Group's proportion in net profit or loss and other comprehensive income of joint ventures and associates after that date. By applying the equity method, the Group's share in net profit or loss and other comprehensive income of joint ventures and associ-ates is recorded against the statement of profit or loss or other comprehensive income, respectively, and the dividends received are deducted from the value of the investment. The excess of cost of acquisition over the fair value of identifiable assets and liabilities of each joint venture and associate at the acquisition date is recognised as goodwill (Note


2.2.d)) and is kept under the caption of the investments in joint venture and associates. If the difference between the acquisition cost and fair value of assets and liabilities ac-quired is negative, it is recognised as a gain for the year in the statement of profit or loss. The investments in joint ventures and associates including, when applicable, any goodwill (Note 2.2.d)), included as part of the investment in joint venture and associates, are as-sessed for impairment purposes when there are indicators that the asset may be im-paired. Any existing impairment loss is recorded as a loss in the statement of profit or loss. When the Group's share of accumulated losses of the joint venture or associate exceeds the amount at which the investment is recorded, the investment is reported at nil value and the recognition of losses is discontinued, except in the extent of the Group’s com-mitment towards the joint venture or associate. Unrealised gains and losses arising from transactions with joint ventures and associates are eliminated to the extent of the Group’s interest in the joint venture or associate against the investment in that joint venture or associate. The Group discontinues the use of the equity method from the date when the investment ceases to be a joint venture or an associate or when the investment is classified as held for sale. When the Group retains an interest in the former joint venture or associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between: (i) the carrying amount of the joint venture or associate at the date the equity method was discontinued, and (ii) the fair value of any retained interest and any proceeds from disposing of a part interest in the joint venture or associate, is included in the determination of the gain or loss on disposal of the joint venture or associate. If the investment becomes a subsidiary, the Group applies IFRS 3 – Business Combina-tions and IFRS 10 - Consolidated financial statements (Notes 2.2.a) and 2.2.d)). The Group continues to use the equity method when an investment in an associate be-comes an investment a joint venture or an investment in a joint venture becomes an in-vestment in an associate. There is no remeasurement to fair value upon such changes in ownership interests. Investments in joint ventures are listed in Note 5. Investments in associates are listed in Note 6.


c) Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. As of 31 December 2016 and 2015 there are no joint operations within the Group.

d) Goodwill

In the acquisitions of subsidiaries after 1 January 2010, the positive differences between the transferred price (usually acquisition cost) increased by the amount of non-controlling interests at acquisition date and the fair value of identifiable net assets ac-quired and the assumed liabilities of such companies at the acquisition date, are recorded under caption "Goodwill". If the difference is negative, it is recognised as a gain of the year. The non-controlling interests at acquisition date are measured at fair value or by their share of the fair value of identifiable net assets at the acquisition date. The positive differences between the acquisition cost of investments in subsidiaries ac-quired until 31 December 2009, joint ventures and associates and the fair value of identi-fiable assets and liabilities attributable to the Group of those companies at the acquisition date, are recorded under the caption "Goodwill (in the case of investments in subsidiar-ies) or in investment in joint ventures and associates (in the case of investments in joint ventures and associates). If the difference is negative, it is recognised as a gain of the year. Non-controlling interests include, in the case of acquisition of subsidiaries, their proportion in the fair value of identifiable assets and liabilities at the acquisition date. The goodwill is not depreciated and is tested for impairment at each reporting date. Any impairment loss on goodwill is immediately recognised in the statement of profit or loss of the year under the caption "Write-off and impairment losses” and not subsequent-ly reversed. The impairment tests of goodwill are based on the Net Asset Value (“NAV”) of the shares held, at each reporting date. The NAV corresponds to the fair value, at each reporting date, of the net assets of the subsidiary excluding deferred tax liabilities relating to unrealised gains on investment properties.

e) Translation of financial statements of foreign entities

The entities that operate abroad and are financially, economically, and organisationally autonomous are considered as foreign entities. The assets and liabilities of the financial statements of foreign entities are translated to Euro at the exchange rate as of the reporting date and the income and expenses and also the cash-flow statement are translated to Euro using the average exchange rate. The amount related to the exchange rate difference is recorded in the equity under the cap-tion “Translation reserve”. Goodwill and fair value adjustments resulting from the acquisition of those foreign enti-ties are considered as assets and liabilities of that foreign entity, being translated to Euro at the exchange rate existing as of each reporting date.


Whenever a foreign entity is sold, the accumulated exchange differences are recognised as a gain or loss in the consolidated statement of profit or loss. The exchange rates used for the conversion into Euro of the accounts of foreign subsidi-aries, joint ventures and associates were the following:

2.3. Investment Properties

Investment properties consist of investments in buildings and other constructions in shopping centres to earn rentals or capital appreciation or both, rather than for use in the production or supply of goods or services or for administration purposes or for sale in the ordinary course of business. Investment properties are recorded at their fair value based on appraisals made by inde-pendent specialised entities (fair value model). Changes in fair value of investment prop-erties are accounted for in the period in which they occur, under the statement of profit or loss caption “Variation in fair value of investment properties”. The Group’s assets which qualify as investment properties are recognised as such when they start being used or, in the case of the investment properties under development, when their development is considered irreversible. By the time the asset qualifies as in-vestment property, it is booked at its historical or production cost under “Investment properties under development” as a tangible fixed asset– Property, Plant and Equipment (Note 2.4). Thereafter, such assets are accounted at their fair value. The difference be-tween fair value and cost (of purchase or production), at that date, is recorded directly in the statement of profit or loss, under caption “Variation in fair value of investment prop-erties”. Costs incurred related to investment properties in use, namely maintenance, repairs, insurance, and property taxes are recognised as an expense in the statement of profit or loss for the year to which they relate. The improvements estimated to generate addition-al economic benefits are capitalised under the caption “Investment properties”. If an investment property becomes owner-occupied, it is reclassified to the caption “Property, plant and equipment”. Fit out contracts are contracts under which the Group supports part of the expenses in-curred with the fit-out expenses and the tenant assumes the responsibility to reimburse the Group by the amount invested over the term of the contract, in terms and conditions specific to each contract. The amounts paid by the Group on each fit out contract are

31.12.16 Average 31.12.15 AverageBrazilian Real 0.29150 0.26105 0.23193 0.27451

New Romanian Leu 0.22021 0.22270 0.22102 0.22498

Colombian Peso 0.00032 0.00030 0.00029 0.00033

Algerian Dinar 0.00859 0.00826 0.00859 0.00900

Hong Kong Dollar 0.12232 0.11647 0.11852 0.11632

Turkish Lira 0.26931 0.29959 0.31481 0.33228

Chinese Yuan Renmimbi 0.13661 0.13606 0.14163 0.14350

Moroccan Dirham 0.09386 0.09217 0.09274 0.09235

Russian Rouble 0.01555 0.01357 0.01240 0.01487

2016 2015


initially recorded at cost under the caption “Investment properties”, being subsequently adjusted to the corresponding fair value, at each reporting date, as determined by spe-cialised independent entities. The methodology used to determine the fair value of the fit-out contracts is like the one used in determining the fair value of the investment prop-erty to which these contracts relates. Variations in fair value of the fit-out contracts are recorded in the consolidated statement of profit or loss under the caption “Variation in fair value of the investment properties”.

2.4. Property, Plant and Equipment

Tangible fixed assets (Property, Plant and Equipment) are stated at cost less accumulat-ed depreciation and any accumulated impairment losses. Depreciation is provided on a straight-line basis, as from the date the assets start being used, over the estimated period of useful life of each group of assets. The depreciation rates used correspond to the following periods of estimated useful life:

Years Buildings and other constructions 50 Machinery and equipment 10 Transport equipment 5 Tools and utensils 4 Administrative equipment 10 Other property, plant and equipment 5

Tangible fixed assets in progress and investment properties under development are rec-orded at cost of acquisition or production, deducted from eventual impairment losses. As fixed assets in progress relate mainly to tangible fixed assets, that will qualify in the fu-ture as investment properties, those are classified separately in the statement of financial position, under the caption “Investment properties under development”. Gains and losses arising from the sale or disposal (write-off) of tangible fixed assets are determined as being the difference between the sale price and the corresponding carry-ing amount as of the sale/disposal date, being recorded in the statement of profit or loss, under the captions “Other operating income” or “Other operating expenses”.

2.5. Intangible assets

Intangible assets are stated at cost less accumulated depreciation and any impairment losses. Intangible assets are only recognised if it is likely to produce future economic benefits to the Group, are controlled by the Group and the cost of the asset can be relia-bly measured. Expenditure on research activities are recorded as expenses in the period they are in-curred. Intangible assets as of 31 December 2016 consist mainly of:

- rights of facilities management, which are depreciated on a straight-line basis over the estimated period of the management right (periods ranging from 10 to 15 years);

- Software, which is depreciated over the estimated period of use (periods ranging from 3 to 5 years).


Depreciation of intangible assets are recorded in the statement of profit or loss under caption “Depreciation and amortisation”.

2.6. Non-current assets held for sale

Non-current assets (and all related assets and liabilities to dispose) are classified as held for sale if it is expected that its book value will be recovered through sale rather than through continuing use. This condition is considered fulfilled only when the sale is highly probable and the asset (and all other related assets and liabilities to dispose) is available for immediate sale under current conditions. Additionally, there must be in place measures that make likely the sale will be held within 12 months after the date of the classification under this caption. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria describe above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after sale. Non-current assets (and all related assets and liabilities to dispose) classified as held for sale are measured at the lower of book value or fair value, less costs related to the sale. In return, these assets are not amortised.

2.7. Financial assets and liabilities

Assets and liabilities are recognised in the statement of financial position when the Group becomes party to the contract. Financial assets are initially recorded at their acquisition value, which is the fair value, including transaction costs, except for financial assets measured at fair value through profit or loss, where the transaction costs are immediately recorded in the statement of profit or loss. The Group derecognises financial assets when: (i) the contractual rights to cash flows expire; (ii) it transfers to another entity the significant risks and benefits associated with ownership of the property, or; (iii) despite having retained some, but not substantially all the significant risks and benefits, has transferred the control over them. The Group derecognises financial liabilities only when the corresponding obligation is set-tled, cancelled, or expires.


Financial assets are classified into the following categories: - Financial assets measured at fair value through profit or loss - Financial assets held to maturity - Loans and receivables - Financial assets available for sale Financial assets measured at fair value include mainly derivative financial instruments. The subsequent measurement of these financial assets is carried at fair value and rec-orded in the statement of changes in equity, if they qualify for hedge accounting purpos-es (Note 2.8). If they do not qualify for hedge accounting purposes, the fair value of these financial assets is recorded in the statement of profit or loss. Financial assets held to maturity are financial assets with fixed maturity and for which the Group has the intention and ability to hold to that date. In the Group, there are cur-rently no financial assets classified in this category. Loans and receivables are generated during normal operations of the Group, for which there is no intention to negotiate. Classified in this category are the accounts receivable and other receivables, loans to third parties and bank deposits. The subsequent meas-urement of these financial assets is carried at amortised cost in accordance with the ef-fective interest method. Financial assets available for sale are financial assets that are not classified in any of the above-mentioned categories. In this case, the Group should classify in this category fi-nancial investments which were not likely to be classified as subsidiaries, associates, or jointly controlled entities. However, as of the date of these financial statements, no fi-nancial assets are classified in this category. Financial liabilities are classified into the following categories: - Financial liabilities measured at fair value through profit or loss - Other financial liabilities Financial liabilities measured at fair value include mainly derivative financial instruments. The subsequent measurement of these financial liabilities is carried at fair value and rec-orded in the statement of changes in equity if they qualify for hedge accounting purpos-es. If they do not qualify for hedge accounting purposes, the fair value of these financial liabilities is recorded in the statement of profit or loss. Other financial liabilities correspond to other financial liabilities which are not classified in the former category. In this category are classified bank loans and loans from other enti-ties, including shareholders and accounts payable and other payables. The subsequent measurement of these financial liabilities is carried at amortised cost, in accordance with the effective interest method.

a) Trade and Other Receivables

Accounts receivable and other receivables are recorded at amortised cost less any even-tual impairment losses. Usually, the amortised cost of these financial assets does not differ from its nominal value.


b) Borrowings

Loans are stated as liabilities and measured at amortised cost. Any expenses incurred in obtaining such financing, usually paid in advance on issue, namely the bank fees and stamp duty as well as interest and similar expenses, are rec-ognised using the effective interest method in the results of the year, over the lifetime of such financing. These prepaid expenses are deducted from the caption “Bank loans”. Financial expenses including interest expenses and similar expenses (namely stamp du-ty), are recorded in the statement of profit or loss on an accrual basis of accounting. The amounts due and not paid at the reporting date are recorded under the caption “Other current liabilities”.

c) Trade and Other Payables

Accounts payable and other payables are stated at amortised cost. Usually, the amor-tised cost of these liabilities does not differ from its nominal value.

d) Cash and cash equivalents

The amounts under caption "Cash and cash equivalents" includes cash on hand, bank deposits on demand and other treasury applications which mature in less than three months that are subject to insignificant risk of change in value. These assets are measured at amortised cost. Usually, the amortised cost of these finan-cial assets does not differ from its nominal value. For purposes of the statement of cash flows, “Cash and cash equivalents” also include bank overdrafts, which are included in the statement of financial position under caption “Other loans”.

e) Derivative financial instruments

The Group uses derivative financial instruments in managing their financial risks associ-ated with fluctuating interest rate, only as a way to hedge those risks. Derivatives are not used for trading purposes (speculation). Derivative financial instruments used by the Group relate mainly to instruments for hedg-ing interest rate on bank loans obtained, usually corresponding to "swap" or "zero cost collars" of interest rate. Derivative financial instruments are initially recorded at fair value on the date of their contract. At each reporting date, they are remeasured at fair value, with the correspond-ing gain or loss on the remeasurement recorded immediately in the statement of profit or loss, unless such instruments are designated as hedging instruments. When they are designated as a hedging instrument (Note 2.8), the corresponding gain or loss in the re-measurement is recorded against the caption "Hedging reserve" in equity and transferred to results when the covered position affects the statement of profit or loss. A derivative with a positive fair value is recognised under caption "Derivative financial instruments" as a financial asset. A derivative financial instrument with a negative fair value is recognised under the same caption but as a financial liability. A derivative is presented as non-current if the remaining maturity exceeds 12 months and is not expected that it will be executed or settled within that period.


In situations where there are derivatives embedded in other financial instruments or oth-er host contracts, they are treated as separate derivatives in situations where the risks and characteristics are not closely related to the host contracts and in situations where the host contracts are not presented at fair value with unrealised gains or losses record-ed in the statement of profit or loss.

2.8. Hedge accounting

As mentioned above, the Group uses derivative financial instruments (usually swaps and zero cost collars) to cover the risk of changing interest rate on Group’s bank loans (cash flow hedge). The amount of loans, maturities, interest rates and reimbursement plan of loans underlying such financial instruments to hedge interest rate are usually identical in all conditions established for the correspondent contracted loans, which usually sets the perfect relationship coverage. The criteria for classifying financial derivatives for hedging interest rate as cash flow hedges are as follows: - The hedge transaction is expected to be highly effective in achieving offsetting

changes in fair value or cash flows attributable to the hedged risk; - the effectiveness of the hedge can be reliably measured; - there is adequate documentation of the hedging relationships at the inception of the

hedge; - the forecast transaction that is hedged is highly probable. Derivative financial instruments used by the Group to hedge the exposure to changes in the interest rate of its loans are initially recorded at cost, if any, and subsequently ad-justed to the corresponding fair value. Changes in fair value of these hedging instru-ments are recorded in equity under the caption “Hedging reserve”, and then recognised in the statement of profit or loss over the period the hedged instrument affects results, when those meet the conditions to hedge accounting, otherwise the changes in fair value are recognised through the statement of profit or loss. Hedge accounting of derivative instruments is discontinued when the instrument matures or is sold. Whenever a derivative instrument can no longer be qualified as a hedging in-strument, the fair value differences recorded in equity under the caption “Hedging re-serve” are transferred to profit or loss of the year or to the book value of the hedged as-set; subsequent variations in fair value are recorded in the statement of profit or loss.

2.9. Accounting for leases

A lease is classified as (i) finance lease whenever the terms of the lease transfer substan-tially all the risks and rewards of ownership to the lessee and as (ii) an operating lease if the risks and rewards of ownership are not transferred to the lessee. Classifying a lease as finance or an operating lease depends upon the substance of trans-action rather than the form of the contract. Accounting for leases where the Group is the lessee The assets acquired through finance lease contracts, as well as the corresponding re-sponsibilities, are recognised by the financial method, including in the statement of finan-cial position the acquired asset and the pending debts in accordance with the contractual terms. In addition, the interest included in the lease payments and the changes in the


fair value of the investment property or the depreciation of the tangible assets, are post-ed in the statement of profit or loss of the year. The existing situations where the Group is the lessee are operating leases and as such the lease payments are recognised as an expense on a straight-line basis over the lease term. Accounting for leases where the Group is the lessor The existing situations where the Group is the lessor relate to the contracts with the ten-ants of the shopping centres. These contracts are usually for a period of six years and establish the payment by the tenant of a monthly fixed rent (invoiced in advance), a turnover rent (invoiced if the monthly sales of the tenant are higher than the limit estab-lished in the contract) and the payment of tenant’s share in the shopping centre operat-ing expenses (common charges). The contract with the tenant may also establish the payment of an entrance fee in the shopping centre (key money income) and some dis-counts (usually in the first three years of the contract) to the fixed rent. These contracts can be renewed or cancelled by any of the parties involved (the company or the tenant). If the cancellation is proposed by the lessor it must pay a cancellation fee (buy-out cost) to the tenant. In accordance to the conditions of these contracts, they are classified as operating leas-es, being the rents (fixed and turnover rents) and the common charges recorded as rev-enue in the statement of profit or loss in the year to which they relate. The expenses (namely discounts on fixed income and buy-out costs) as well as the key income and the cancellation fee related with the operating leases are recorded as expenses or income in the statement of profit or loss in the year to which they incurred or are received. This procedure is consistent with the one followed by the independent specialised entity which determines the fair value of the investment property to which the lease contracts are related (Note 2.3).

2.10. Borrowing costs

Financial costs related to borrowings are generally recognised as expense as incurred. Borrowing costs related directly to the acquisition, construction, or production of tangible assets (usually investment properties under development) are capitalised as part of the cost of the qualified asset. Borrowing costs are capitalised from the time of preparation of the activities to construct or develop the asset to the time the production or construction is completed or when the development is suspended. Any eventual financial income de-rived from a loan obtained earlier and allocable to a qualifying account, is deducted from the financial expenses that qualify for capitalisation.

2.11. Provisions

Provisions are recognised when, and only when, the Group has an obligation (legal or implicit) resulting from a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed and adjusted at the reporting date to reflect the best estimate as of that date. The Group recognises provisions for restructuring expenses when there is a formal and detailed restructuring plan and that such plan has been communicated to the parties in-volved.


2.12. Income tax

The income tax for the period comprises current and deferred tax. The current income tax is determined based on the taxable results of the companies in-cluded in the consolidation in accordance with the tax laws enacted or substantively en-acted at the reporting date in the countries where their head offices are located. Deferred taxes are calculated using the financial position liability method, reflecting the net tax effects of temporary differences between the carrying amounts of assets and lia-bilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are not recognised when the corresponding temporary differences arise from goodwill or from the initial recognition of assets and liabilities other than in a business combination. Deferred tax assets and liabilities are calculated and evaluated annually at the tax rates expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially issued at the report-ing date. Deferred tax assets are recognised only when it is probable that sufficient taxable profits will be available against which the deferred tax assets can be utilised. At the reporting date, a review is made of the deferred tax assets and they are reduced whenever their future use is no longer probable. Deferred tax assets and liabilities are recorded in the statement of profit or loss, except if they relate to items directly recorded in equity captions. In these situations, the corre-sponding deferred tax is also recorded under the same caption.

2.13. Revenue

The Group's revenue is basically due to income from investment properties via the oper-ating lease contracts and services related to common charges management of shopping centres, car parking operations, management fees in shopping centres held by third par-ties and development fees invoiced to third parties. The revenue related to income from investment properties via the operating lease con-tracts with the tenants (Note 2.9) is recognised in the year to which it relates, as follows: - Fixed rent: This income is invoiced in the previous month to which it relates and is recognised in the statement of profit or loss in the period to which it relates. - Turnover rent: This income is contingent and payable when the sales exceed the limit specified in the lease contract. As such, this income is recorded on an accrual basis.


- Other income and expenses:

Revenue arising from key money is recognised when received from the tenants and the revenue arising from contract transfer fees is recognised when charged to tenants, in the statement of profit or loss under captions "Other operating revenue" and "Services ren-dered", respectively. The discounts on fixed rents and the buy-out costs are recognised in the statement of profit or loss when granted to tenants, under captions "Services ren-dered” (as a deduction) and "Other operating expenses", respectively. This procedure is consistent with the methodology used by the independent specialised entity that determines the fair value of the investment property to which the lease con-tracts are related. Extra-contractual discounts granted to tenants, on a casuistic basis, are recorded when granted, on the statement of profit or loss, under the caption “Services rendered” (as a deduction). Revenues arising from the services rendered related to common charges of the shopping centres, car parking operations, management and development fees are recognised in the statement of profit or loss in the year to which they relate on an accrual basis of ac-counting and observing the stage of completion of service at the reporting date, if all the following conditions are met:

• The amount of the revenue can be reliably measured; • It is likely that future economic benefits associated with the transaction will flow into the Group; • The expenses incurred or to be incurred with the transaction can be reliably measured; • The stage of completion of the transaction/service, at the reporting date, can be reliably measured.

The dividends are recognised as gains in the year they are assigned to the shareholders.

2.14. Accrual basis of accounting

The income and expenses are recognised in the year to which they relate, regardless of the date of payment or receipt (accrual basis of accounting). The income and expenses for which actual amounts are not known are estimated. Under the captions "Other current assets" and "Other current liabilities” are recorded in-come and expenses attributable to the current year, which settlement or receipt will only occur in future years, as well as amounts paid and received that have occurred on the reporting date, but which relate to future periods, and that will be charged to the state-ment of profit or loss of the corresponding year.

2.15. Impairment of assets

a) Non-financial assets, excluding goodwill

With the exception of investment properties (Note 2.3) and deferred tax assets (Note 2.12), non-financial assets are assessed for impairment at each reporting date and whenever events or changes in circumstances indicate that the amount by which the as-set is registered may not be recovered.


Whenever the carrying amount of an asset exceeds its recoverable amount, an impair-ment loss is recognised under the statement of profit or loss caption “Impairment losses and write-off”. The recoverable amount is the higher of an asset’s net selling price and value in use. The net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction less the costs of disposal. Value in use is the present value of estimated fu-ture cash flows expected to arise from the continuing use of an asset and from its dis-posal at the end of its useful life. Recoverable amounts are estimated for individual as-sets or, if this is not possible, for the cash-generating unit to which the asset belongs. Reversal of impairment losses recognised in prior years is recorded when there is an indi-cation that the impairment losses recognised for the asset no longer exists or has de-creased. The reversal is recorded in the statement of profit or loss as operating result. However, the increased carrying amount of an asset due to a reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciations) in case no impairment loss had been recognised for that asset in prior years.

b) Financial assets (usually accounts receivable, in the case of Group)

Whenever there are objective indicators that the Group will not receive the amounts it is entitled to, in accordance with the arrangements agreed between the parties, an impair-ment loss is recorded in the statement of profit or loss. The indicators used by the Group to identify the signs of impairment are: - Failure on the maturity and/or other terms agreed between the parties; - Financial constraints of the debtor; - Probability of insolvency of the debtor. Whenever there is such evidence, the existence of impairment losses is assessed, which is determined by the difference between the asset's carrying amount and its correspond-ing recoverable amount. Impairment losses are recorded in the statement of profit or loss under the caption "Write-off and impairment losses" in the period they are determined. Subsequently, if the amount of the impairment loss reduces, it is reversed by results and recorded under the caption "Other operating revenue”.

2.16. Balances and transactions expressed in foreign currency

Transactions in currencies other than Euro are recorded at the exchange rates prevailing on the transaction date. At each reporting date, all monetary assets and liabilities expressed in foreign currencies are translated to Euro using the closing exchange rates as of that date (Note 2.2.e)). Exchange gains or losses, arising from differences between exchange rates effective at the date of transaction and those prevailing at the date of collection, payment or at the reporting date, are recorded as income or expenses in the statement of profit or loss.


2.17. Current/non-current classification on the statement of financial position

Assets and liabilities due in more than one year from the reporting date are classified as non-current assets and liabilities, respectively.

2.18. Contingent assets and liabilities

Contingent liabilities are not recognised in the consolidated financial statements. They are disclosed in the notes unless the possibility of an outflow of resources incorporating economic benefits is remote. A contingent asset is not recognised in the consolidated financial statements but dis-closed in the notes when an inflow of economic benefits is probable.

2.19. Risk management policies

The Group’s activities are exposed to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. Risk management is carried out by a central treasury department of the Group Sonae Sierra, under policies approved by the Board of Directors. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk.

a) Foreign exchange risk

The main operating activity of each company is developed inside its country and conse-quently much of the company transactions are maintained in the same currency of its country. The policy to cover this specific risk is to avoid, whenever possible, the contract-ing of services in foreign currency. As the operational activity of the Company is maintained in Euros, the Company policy is to obtain its borrowings also in Euros, in order to eliminate the foreign currency risk.

b) Credit risk

The group’s credit risk results essentially from the credit risk of the tenants of the shop-ping centres managed by the Group. The control of this risk is made by an evaluation of the credit of the tenants before their acceptance in the shopping centre as well as a con-trol over the credit limits attributed to each tenant.

c) Liquidity risk

The needs of treasury are managed by the financial department of the Sonae Sierra Group, which monitors the surplus and deficits of liquidity of each one of the companies included in the consolidation. The occasional needs for liquidity are covered by an ade-quate control of the accounts receivables and by the maintenance of adequate limits of credit arranged by the Group with its banks.


d) Interest rate risk

The Group’s income and operating cash-flows are influenced by changes in market inter-est rates, since its cash and cash equivalents and intragroup financing granted are de-pendent on the evolution of the interest rates in Euro which, historically, have had little volatility. On long-term financing, and as a way to mitigate the changes in the long-term interest rates, the Group contracts cash flow hedge instruments (“swaps”, “zero cost collars” or “caps”). Additionally, the Group also chose to fix the interest rate of some financings. Interest rate sensitivity analysis: The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and non-derivative instruments in place during the reporting period. For floating rate assets and liabilities, the analysis is prepared based on the fol-lowing assumptions:

Changes in market interest rates affect the interest income or expense of floating rate interest financial instruments and, in the case of fixed rates that were contract-ed during the period of analysis, changes in the interest rates also affect this com-ponent;

Changes in market interest rates only affect interest income or expense in relation to financial instruments with fixed interest rates if these are recognised at their fair value. As such, all financial instruments with fixed interest rates that are carried at amortised cost are not subject to interest rate risk, as defined in IFRS 7;

In the case of fair value hedges designed for hedging interest rate risks, when the changes in the fair values of the hedged item and the hedging instrument attributa-ble to interest rate movements are offset almost completely in the income statement in the same period, these financial instruments are also not exposed to interest rate risk;

Changes in market interest rates affect the fair value of derivatives designated as hedging instruments;

The fair value of derivative financial instruments (“swaps”, “zero cost collars” or “caps”) and other financial assets and liabilities is estimated by discounting the fu-ture cash flows to their net present values, using appropriate market rates prevailing at yearend and assuming a parallel shift in yield curves;

For the purposes of this sensitivity analysis, such analysis is performed based on all financial instruments outstanding at the end of the relevant year.

Sensitivity analyses are performed by changing one variable while holding all other vari-ables constant. Nonetheless, this is a restrictive and highly unlikely assumption, since variables tend to be correlated.


If interest rates had been 75 basis points higher and all other variables were held con-stant, assumptions unlikely to occur due to interest rates correlation with other variables, the impact in the Group net profit and equity would be the following:

(1) This is mainly attributable to the Group’s exposure to interest rates on its variable rate borrowings; (2) This is mainly a result of the changes in the fair value of derivatives entered as cash flow hedges which are efficient. As of 31 December 2016 and 2015 the interest rate sensitive analysis if the interest rates had been 25 basis points lower was not done because Euribor in 2016 and 2015 was close to 0.25%. In management’s opinion the sensitivity analysis is representative of the inherent interest rate risk of the year and expenses may not reflect the exposures during the year, due to any repayments made.

2.20. Financial instruments by category

The financial instruments according to the policies described in Note 2.7. were classified as follows: Financial Assets

+75 b.p. +75 b.p.

Net Profit (1) (798) (712)Reserves (2) 268 645

20152016

Loans and accounts receivable

Derivatives used for cash flow hedging

(Note 19) TotalAs of 31 December 2016

Non current assetsDerivative financial instruments 1,491 1,491Shareholders 86,639 86,639Other non-current assets 3,644 3,644

90,283 1,491 91,774Current assets

Trade receivables 21,156 21,156Shareholders 32,532 32,532Other receivables 12,164 12,164Cash and cash equivalents 149,628 149,628

215,480 - 215,480305,763 1,491 307,254

As of 31 December 2015 (restated)

Non current assetsShareholders 124,066 124,066Other non-current assets 3,443 3,443

127,509 - 127,509Current assets

Trade receivables 21,637 21,637Shareholders 76 76Other receivables 11,525 11,525Cash and cash equivalents 93,792 93,792

127,030 - 127,030254,539 - 254,539


Financial Liabilities

2.21. Judgments and estimates

In the preparation of the accompanying consolidated financial statements estimates were used which affected the assets and liabilities and the amounts recognised as income and expenses during the reporting period. The estimates were calculated using the best information available, at the date of ap-proval of the financial statements, of the events and transactions in course and of the experience from current and/or past events. However, events may occur in subsequent periods that were unanticipated as of the date of these statements and, consequently were not included in those estimates. Changes in the estimates after the closing of the consolidated financial statements will be booked in the subsequent year, as required in IAS 8.

Fair Value

Liabilities at fair value through profit

or loss(Note 19)

Derivatives used for cash flow hedging

(Note 19)

Financial liabilities at amortised

cost Total

Level 2

As of 31 December 2016

Non current liabilities:Bank loans 292,580 292,580 317,019Debentures loans 74,575 74,575 79,124Derivative financial instruments - 1,319 1,319Shareholders 3,717 3,717Trade payables 72 72Other non-current liabilities 8,671 8,671

- 1,319 379,615 380,934Current liabilities:

Current portion of long term bank loans 27,996 27,996 29,342Short term bank loans 25,000 25,000Shareholders 3,764 3,764Accounts payable to suppliers 9,688 9,688Other payables 9,111 9,111

- - 75,559 75,559- 1,319 455,174 456,493

As of 31 December 2015 (restated)

Non current liabilities:Bank loans 220,476 220,476Debentures loans 74,575 74,575Derivative financial instruments 3,630 3,487 7,117Shareholders 3,667 3,667Trade payables 64 64Other non-current liabilities 8,575 8,575

3,630 3,487 307,357 314,474Current liabilities:

Bank loans 173,871 173,871Shareholders 3,864 3,864Accounts payable to suppliers 10,188 10,188Other payables 32,829 32,829

- - 220,752 220,7523,630 3,487 528,109 535,226

Carrying amount


The principal estimates of the Group relates to fair value, namely the fair value of the investment properties, the goodwill, the derivatives and deferred tax assets, as follows:

a) Investment properties

The investment properties in operation are recorded at their fair value based on annual appraisals by independent specialised entities. Those valuations assume several assump-tions, including the estimate of future income and expense of each property and the use of an appropriate discount rate. The investment properties under development measured at cost, the Group follows the procedure of, on an annual basis, evaluating their performance through assessments carried out by independent specialized agencies and/or testing carried out internally, in which the net cash flows expected of those properties are considered.

b) Derivative financial instruments

The derivative financial instruments are usually used by the Group to hedge the cash flow in the form of swaps (“interest rate swap”) or zero cost collars. The fair value of those derivatives is, at each reporting date, calculated by external entities (usually the financial institution with which the derivative was contracted). The fair value calculated by them is internally tested in order to validate the calculation performed by the third parties.

c) Goodwill

The impairment tests on Goodwill are based on the “Net Asset Value” (“NAV”) at the re-porting date of the financial investment.

d) Deferred tax assets

The deferred tax assets are recognised only if it is expected that future fiscal profits will be enough to use the deferred tax assets. At each reporting date, the deferred tax assets are assessed and they are reduced if future recoverability is unanticipated. This revision is based on projections of the future activity of each company where it is applicable.

e) Other assets and liabilities

Concerning the other assets and liabilities, such as VAT to be reimbursed by tax authori-ties and the legal and fiscal processes that are reflected in the financial statements of the companies, the Legal and Fiscal departments are consulted by the Board to assess the probability of receiving and/or paying such amounts. With that information, the Board will estimate which adjustments will be made in the financial statements. The main assumptions used in the Group estimates are disclosed in each related note.

2.22. Operating segments

Operating segments are reported in accordance with the information used internally by the management of the Group.


2.23. Subsequent events

Events occurred after the reporting date that provide additional information about condi-tions that existed at the reporting date (adjusting events) are reflected in the financial statements. Events occurred after the reporting date that provide information on condi-tions that occur after the reporting date (non-adjusting events) are disclosed in the con-solidated financial statements, if materially significant.

3 RESTATEMENT

In 2015, the Group decided to reduce its interest position in several of its property com-panies. Accordingly, the Group classified those assets and the liabilities directly associat-ed with those companies as held for sale. During 2016 only part of those assets was sold and a restatement of 2015 accounts was done, as required by IFRS5 – Non-current as-sets held for sale and discontinued operations. The impact of the restatement of the consolidated statement of financial position is as follows:

The impact in the consolidated statement of cash flows is of kEuro -20,752 in the line “Cash and cash equivalents transferred to assets held for sale”.

31 December 2015 Adjustement 31 December 2015

Restated

Investment properties (Note 9) (726,956) 453,456 (273,500)Investments in joint ventures and associates (Note 5) (92,918) 92,918 -Deferred tax assets (Note 23) (1,210) 967 (243)Other non-current assets (13,893) 10,023 (3,870)Total non-current assets (834,977) 557,364 (277,613)

Other current assets (3,596) 2,971 (625)Cash and cash equivalents (31,788) 20,752 (11,036)Total current assets (35,384) 23,723 (11,661)

Assets classified as held for sale 870,361 (581,087) 289,274

Non current bank loans and other facilities (156,855) 124,530 (32,325)Deferred tax liabilities (Note 23) (122,600) 77,183 (45,417)Other non-current liabilities (9,278) 6,664 (2,614)Total non-current liabilities (288,733) 208,377 (80,356)

Current bank loans and other facilities (123,472) 60,559 (62,913)Other current liabilities (12,147) 8,190 (3,957)Total current liabilities (135,619) 68,749 (66,870)

Liabilities directly associated with assets classified as held for sale 424,352 (277,126) 147,226


4 SUBSIDIARIES

The subsidiaries of the Group, their head offices, and the percentage of interests held by the Group as of 31 December 2016 and 2015, are as follows: Ownership

interests and voting

rights held

Company Head office 31.12.16 31.12.15

Parent company Sonae Sierra, SGPS, S.A. Maia (Portugal) - -

Subsidiaries

Corporate services Sierra Services Holland B.V. Amsterdam (Netherlands) 100.00% 100.00%

3) Sierra Services Holland 2 B.V. Amsterdam (Netherlands) - 100.00% Investment 3shoppings - Holding, SGPS, S.A. Maia (Portugal) 50.10% 50.10%

ALEXA Holding GmbH Dusseldorf (Germany) 100.00% 100.00%

ALEXA Shopping Centre GmbH Dusseldorf (Germany) 100.00% 100.00%

2) Algarveshopping- Centro Comercial, S.A. Maia (Portugal) 50.10% 50.10%

3) Avenida M-40 B.V. Amsterdam (Netherlands) - 50.10%

3) Beralands B.V. Amsterdam (Netherlands) - 100.00%

Cascaishopping-Centro Comercial, S.A. Maia (Portugal) 57.24% 57.24%

Cascaishopping Holding I, SGPS, S.A. Maia (Portugal) 57.24% 57.24%

Coimbrashopping- Centro Comercial, S.A. Maia (Portugal) 50.10% 50.10%

Dos Mares - Shopping Centre, B.V. Amsterdam (Netherlands) 50.10% 50.10%

Dos Mares-Shopping Centre, S.A. Madrid (Spain) 50.10% 50.10%

2) Estação Viana- Centro Comercial, S.A. Viana do Castelo (Portugal) 50.10% 50.10%

Gli Orsi Shopping Centre 1 Srl Milan (Italy) 100.00% 100.00%

Guimarãeshopping- Centro Comercial, S.A. Maia (Portugal) 50.10% 50.10%

1) Iberian Holdings Spain, S.L. Madrid (Spain) 100.00% -

Land Retail B.V. Amsterdam (Netherlands) 64.37% 64.37%

2) Luz del Tajo – Centro Comercial, S.A. Madrid (Spain) 50.10% 50.10%

Luz del Tajo B.V. Amsterdam (Netherlands) 50.10% 50.10%

Maiashopping- Centro Comercial, S.A. Maia (Portugal) 50.10% 50.10%

3) Münster Arkaden, B.V. Amsterdam (Netherlands) - 50.10%

Paracentro - Gestão de Galerias Comerciais, S.A. Maia (Portugal) 100.00% 100.00%

Plaza Eboli – Centro Comercial S.A. Madrid (Spain) 100.00% 100.00%

Plaza Mayor Parque de Ócio B.V. Amsterdam (Netherlands) 50.10% 50.10%

Plaza Mayor Parque de Ocio, S.A. Madrid (Spain) 50.10% 50.10%

Plaza Mayor Shopping, B.V. Amsterdam (Netherlands) 50.10% 50.10%

Plaza Mayor Shopping, S.A. Madrid (Spain) 50.10% 50.10%

2) Project Sierra 8, B.V. Amsterdam (Netherlands) 50.10% 50.10%

River Plaza, B.V. Amsterdam (Netherlands) 100.00% 100.00%

River Plaza Mall, Srl Bucharest (Romania) 100.00% 100.00%

Shopping Centre Parque Principado B.V. Amsterdam (Netherlands) 50.10% 50.10%

Sierra Berlin Holding B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Core Assets Holdings, B.V. Amsterdam (Netherlands) 50.10% 50.10%

Sierra European Retail Real Estate Assets Holdings B.V. Amsterdam (Netherlands) 50.10% 50.10%

Sierra GP Limited Guernsey 100.00% 100.00%

Sierra Investments (Holland) 1 B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Investments (Holland) 2 B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Investments Holdings B.V. Amsterdam (Netherlands) 100.00% 100.00%


Ownership


rights held


Sierra Investments SGPS, S.A. Maia (Portugal) 100.00% 100.00%

1) Sierra Retail Ventures BV Amsterdam (Netherlands) 100.00% -

Sierra Solingen Holding GmbH Dusseldorf (Germany) 100.00% 100.00%

1) Sierra Spain Malaga Holdings, S.L. Madrid (Spain) 100.00% -

4) 5) VdG Holding BV Amsterdam (Netherlands) - 50.10%

SPF - Sierra Portugal Luxembourg 100.00% 100.00% Services

Sierra Germany GmbH Dusseldorf (Germany) 100.00% 100.00%

Sierra Italy Srl Milan (Italy) 100.00% 100.00%

Sierra Management, SGPS, S.A. Maia (Portugal) 100.00% 100.00%

1) Sierra Maroc Services SARL Casablanca (Morocco) 100.00% -

Sierra Portugal, S.A. Lisbon (Portugal) 100.00% 100.00%

Sierra Romania Shopping Centers Services, SRL Bucharest (Romania) 100.00% 100.00%

Sierra Spain, Shopping Centers Services, S.A. Madrid (Spain) 100.00% 100.00%

Sierra Turkey Gayrimenkul Yönetim Pazarlama ve

Danışmanlık A.Ş. Istanbul (Turkey) 100.00% 100.00% Developments

ARP Alverca Retail Park, S.A. Maia (Portugal) 100.00% 100.00%

CCCB Caldas da Rainha - Centro Comercial, S.A. Maia (Portugal) 100.00% 100.00%

Dortmund Tower GmbH Dusseldorf (Germany) 100.00% 100.00%

Ioannina Development of Shopping Centres, S.A. Athens (Greece) 100.00% 100.00%

Parque de Famalicão - Empreendimentos Imobiliários,

S.A. Maia (Portugal) 100.00% 100.00%

Project Sierra 2 B.V. Amsterdam (Netherlands) 100.00% 100.00%




Project Sierra Four, SA Bucharest (Romania) 100.00% 100.00%

Project Sierra Germany 2 (two) - Shopping Centre,

GmbH Dusseldorf (Alemanha) 100.00% 100.00%

Project Sierra Germany 4 (four) - Shopping Centre,

GmbH Dusseldorf (Alemanha) 100.00% 100.00%

Project Sierra Spain 1 B.V. Amsterdam (Netherlands) 100.00% 100.00%

Project Sierra Spain 2- Centro Comercial S.A. Madrid (Spain) 100.00% 100.00%

Project Sierra Cúcuta B.V. Amsterdam (Netherlands) 100.00% 100.00%

Project Sierra Two, Srl Bucharest (Romania) 100.00% 100.00%

Microcom Doi, Srl Bucharest (Romania) 100.00% 100.00%

3) Sierra Asia Limited Hong Kong - 100.00%

Sierra Greece, S.A. Athens (Greece) 100.00% 100.00%

Sierra Developments Holding B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Developments, SGPS, S.A. Maia (Portugal) 100.00% 100.00%

1) Sierra Maroc, SARL Casablanca (Morocco) 100.00% -

Sierra Project Nürnberg B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Real Estate Greece B.V. Amsterdam (Netherlands) 100.00% 100.00%

Sierra Zenata Project B.V. Amsterdam (Netherlands) 100.00% 100.00%

Weiterstadt Shopping B.V. Amsterdam (Netherlands) 100.00% 100.00%

1) Companies incorporated in 2016.

2) Companies sold in 2016.

3) Companies liquidated in 2016.

4) In October 2016 the Group sold 50% of the Company.

5) Ex - Sierra VdG Holding BV

These subsidiaries were included in the consolidation by the full consolidation method, as explained in Note 2.2.a)


5 JOINT VENTURES

The joint ventures of the Group, their head offices, and the percentage of interests held by the Group as of 31 December 2016 and 2015, are as follows:

Ownership


rights held


Investment

Companies owned by Sierra BV

Arrábidashopping- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Centro Colombo- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Centro Vasco da Gama - Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

DOC Malaga Holdings S.L. Madrid (Spain) 25.05% 25.05%

DOC Malaga SITECO, S.L.U. Madrid (Spain) 25.05% 25.05%

Gaiashopping I- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Gaiashopping II- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Harvey Dos Iberica, S.L. Madrid (Spain) 25.05% 25.05%

Iberian Assets, S.A. Madrid (Spain) 24.95% 24.95%

Madeirashopping- Centro Comercial, S.A. Funchal (Portugal) 25.05% 25.05%

Norte Shopping Retail and Leisure Centre B.V. Amsterdam (Netherlands) 25.05% 25.05%

Norteshopping- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Parque Atlântico Shopping - Centro Comercial, S.A. Ponta Delgada (Portugal) 25.05% 25.05%

Shopping Centre Colombo Holding B.V. Amsterdam (Netherlands) 25.05% 25.05%

Sierra VdG Holding BV Amsterdam (Netherlands) 25.05% -

Via Catarina- Centro Comercial, S.A. Maia (Portugal) 25.05% 25.05%

Other investment companies 1) Adlands B.V. Amsterdam (Netherlands) 50.00% 50.00%

Colombo Towers Holding, B.V. The Hague (Netherlands) 50.00% 50.00%

Freccia Rossa- Shopping Centre Srl Milan (Italy) 50.00% 50.00%

Larissa Development of Shopping Centres, S.A. Athens (Greece) 50.00% 50.00%

2) Loop 5 - Shopping Centre, GmbH Dusseldorf (Germany) 9.00% 50.00%

Pantheon Plaza B.V. Amsterdam (Netherlands) 50.00% 50.00%

Parklake Shopping S.A. Bucharest (Romania) 50.00% 50.00%

3) Plenerg SRL Bucharest (Romania) 50.00% -

Solingen Shopping Centre GmbH Dusseldorf (Germany) 50.00% 50.00%

Expansion

Aegean Park Constructions Real Estate and Development,

S.A. Athens (Greece) 50.00% 50.00%

Park Avenue Developement of Shopping Centers S.A. Athens (Greece) 50.00% 50.00%

Proyecto Cúcuta S.A.S. Santiago de Cali (Colombia) 50.00% 50.00%

SC Aegean B.V. Amsterdam (Netherlands) 50.00% 50.00%

Sierra Central S.A.S. Santiago de Cali (Colombia) 50.00% 50.00%


Ownership


rights held


Brazil

Fundo Investimento Imobiliário Parque Dom Pedro Shopping

Center Rio de Janeiro (Brazil) 20.68% 20.68%

Fundo Investimento Imobiliário Shop. Parque Dom Pedro Rio de Janeiro (Brazil) 31.56% 31.56%

Parque D. Pedro 1 B.V. Sarl Luxembourg 50.00% 50.00%

Pátio Boavista Shopping, Ltda. São Paulo (Brazil) 33.32% 33.32%

4) Pátio Campinas Shopping, Ltda. São Paulo (Brazil) - 33.32%

Pátio Goiânia Shopping, Ltda. São Paulo (Brazil) 33.32% 33.32%

Pátio Londrina Empreendimentos e Participações, Ltda. São Paulo (Brazil) 33.32% 33.32%

Pátio São Bernardo Shopping Ltda São Paulo (Brazil) 33.32% 33.32%

Pátio Sertório Shopping Ltda Manaus (Brazil) 33.32% 33.32%

Pátio Uberlândia Shopping Ltda São Paulo (Brazil) 33.32% 33.32%

Sierra Brazil 1 B.V. Amsterdam (Netherlands) 50.00% 50.00%

Sierra Investimentos Brasil Ltda São Paulo (Brazil) 33.32% 33.32%

Sonae Sierra Brasil, S.A. São Paulo (Brazil) 33.32% 33.32%

Sonae Sierra Brazil B.V. Sarl Luxembourg 50.00% 50.00%

Unishopping Consultoria Imobiliária Lda São Paulo (Brazil) 33.32% 33.32%

1) Companies liquidated during 2016.

2) In January 2016, the Group sold 41% of the Company retaining a minority interest of 9%.

3) Company incorporated in 2016.

4) Company sold in February 2016.


The details of joint ventures of the Group as of 31 December 2016 and 2015 is as fol-lows:

Net % own Carrying Proportion DividendsHead office Equity Profit (*) amount in P/L received

InvestmentCompanies owned by Sierra BVArrábidashopping- Centro Comercial, S.A. Maia (Portugal) 52,519 14,936 50.00% 26,260 7,468 -

1) Gaiashopping I- Centro Comercial, S.A. Maia (Portugal) 63,075 14,240 50.00% 31,537 7,120 -Harvey Dos Iberica, S.L. Madrid (Spain) 8,367 242 50.00% 4,183 121 -Iberian Assets, S.A Madrid (Spain) 244,656 49,624 49.81% 121,851 24,715 -

Goodwill Iberian 6,471 -Madeirashopping- Centro Comercial, S.A. Funchal (Portugal) 33,353 7,873 50.00% 16,676 3,936 -

2) Norte Shopping Retail and Leisure Centre B.V. Amsterdam (Netherlands) 273,577 47,577 50.00% 136,789 23,789 -Parque Atlântico Shopping - Centro Comercial, S.A. Ponta Delgada (Portugal) 36,137 7,759 50.00% 18,068 3,879 -

3) Shopping Centre Colombo Holding B.V. Amsterdam (Netherlands) 435,856 118,657 50.00% 217,927 59,328 17,2504) VdG Holding BV Amsterdam (Netherlands) 192,853 51,691 50.00% 96,426 25,845 2,500

Via Catarina- Centro Comercial, S.A. Maia (Portugal) 8,105 2,935 50.00% 4,053 1,468 -5) DOC Malaga Holdings S.L Madrid (Spain) 1,099 (98) 50.00% 549 (49) -

Other investment companies6) Adlands B.V. Amsterdam (Netherlands) - (93) 50.00% - (47) -

Colombo Towers Holding, B.V. Amsterdam (Netherlands) 2,538 (27) 50.00% 1,269 (13) -Freccia Rossa- Shopping Centre Srl Milan (Italy) (5,425) 279 50.00% (2,712) 139 -Goodwill Freccia (175)

7) Loop 5 - Shopping Centre, GmbH Dusseldorf (Germany) - - 9.00% - - -8) Pantheon Plaza B.V. Amsterdam (Netherlands) 1,074 344 50.00% 537 172 -

Parklake Shopping Srl Bucharest (Romania) 66,879 47,811 50.00% 33,440 23,906 -9) Plenerg SRL Bucharest (Romania) (39) (39) 50.00% (20) (20) -

Solingen Shopping Centre GmbH Frankfurt (Germany) (1,655) (2,053) 50.00% (828) (1,026) -Developments

Park Avenue Development of Shopping Centres S.A. Athens (4,335) 9 50.00% (2,168) 4 -10) SC Aegean B.V. Amsterdam (Netherlands) 9,896 (305) 50.00% 4,948 (152) -

Proyecto Cúcuta S.A.S. Santiago de Cali (Colombia) 20,088 (9) 50.00% 10,044 (5) -Goodwill Cúcuta (1,042)Sierra Central S.A.S. Santiago de Cali (Colombia) 110 (564) 50.00% 55 (282) -Goodwill Sierra Central (274)

Brazil16) Sonae Sierra Brazil B.V. Sarl Luxembourg 621,324 34,042 50.00% 310,662 17,021 6,075

1,036,017 195,826 25,825

(*) The ownership interests are identical to voting rights.

31 December 2016


As mentioned in Note 2.2.b), joint ventures are measured by using the equity method.

Net % own Carrying ProportionDividendsOffice Equity Profit (*) amount in P/L received

InvestmentCompanies owned by Sierra BVArrábidashopping- Centro Comercial, S.A. Maia (Portugal) 37,483 5,491 50.00% 18,742 2,746 -

1) Gaiashopping I- Centro Comercial, S.A. Maia (Portugal) 48,834 13,664 50.00% 24,417 6,832 2,18611) Harvey Dos Iberica, S.L. Madrid (Spain) 8,126 (89) 50.00% 4,062 (45) -

Iberian Assets, S.A Madrid (Spain) 195,039 25,829 49.79% 97,117 12,861 -Goodwill Iberian 6,471 -Madeirashopping- Centro Comercial, S.A. Funchal (Portugal) 25,480 2,478 50.00% 12,740 1,239 741

2) Norte Shopping Retail and Leisure Centre B.V. Amsterdam (Netherlands) 244,000 62,578 50.00% 122,000 31,289 -Parque Atlântico Shopping - Centro Comercial, SPonta Delgada (Portugal) 28,378 4,388 50.00% 14,189 2,194 -

3) Shopping Centre Colombo Holding B.V. Amsterdam (Netherlands) 374,004 128,769 50.00% 187,002 64,385 -Centro Vasco da Gama - Centro Comercial, S.A Maia (Portugal) 184,640 53,020 50.00% 92,320 26,510 2,500Via Catarina- Centro Comercial, S.A. Maia (Portugal) 5,170 2,965 50.00% 2,585 1,482 -

12) Zubiarte Inversiones Inmobiliarias, S.A Madrid (Spain) - (3,800) 49.83% - (1,893) -5) DOC Malaga Holdings S.L Madrid (Spain) 1,196 (7) 50.00% 598 (4) -

Other investment companiesAdlands B.V. Amsterdam (Netherlands) 79 5 50.00% 40 3 -

13) Colombo Towers Holding, B.V. Amsterdam (Netherlands) 2,484 9,427 50.00% 1,242 4,714 5,470Freccia Rossa- Shopping Centre Srl Milan (Italy) (5,502) (655) 50.00% (2,751) (328) -Loop 5 - Shopping Centre, GmbH Dusseldorf (Germany) 92,382 (25,545) 50.00% 46,191 (12,773) -

9) Pantheon Plaza B.V. Amsterdam (Netherlands) 730 4,570 50.00% 365 2,285 -Solingen Shopping Centre GmbH Frankfurt (Germany) 398 (17,048) 50.00% 198 (8,524) -

Services12) 14) Citic Capital Sierra Limited Hong Kong (China) - (303) 50.00% - (152) -6) Sierra - OST Property Management Moscow (Russia) - (76) 50.00% - (38) -

Developments6) ALEXA Administration GmbH Berlin (Germany) - (3) 50.00% - (2) -

Parklake Shopping Srl Bucharest (Romania) 1,288 (3) 50.00% 644 (2) -Park Avenue Development of Shopping Centres Athens (4,344) (7) 50.00% (2,172) (4) -Gain/loss intercompany - - -

10) SC Aegean B.V. Amsterdam (Netherlands) 9,866 (31) 50.00% 4,933 (16) -15) Proyecto Cúcuta S.A.S. Santiago de Cali (Colombia 12,824 6,238 50.00% 6,412 3,119 -

Goodwill Cúcuta (3,642)Sierra Central S.A.S. Santiago de Cali (Colombia 123 (215) 50.00% 62 (108) -Goodwill Sierra Central (110)

Brazil16) Sonae Sierra Brazil B.V. Sarl Luxembourg 475,387 28,271 50.00% 237,692 14,137 4,850

875,099 146,155 15,747


31 December 2015 (Restated)

1)

2)

3) Amounts related to the consolidated accounts of Shopping Centre Colombo Holding B.V. that owns 100% of Centro Colombo- Centro Comercia4)5) Amounts related to the consolidated accounts of DOC Malaga Holdings S.L. that owns 100% of DOC Malaga SITECO, S.L.U..6) Companies liquidated during the year. 7) In January 2016 41% of the share capital of this joint venture was sold. 8) Amounts related to the consolidated accounts of Pantheon Plaza B.V. that owns 100% of Larissa Development of Shopping Centres, S.A..9) Company incorporated in 2016. 10)11)

12) Companies sold during 2015. 13)

14)

15) Companies acquired during 2015.

Amounts related to the consolidated accounts of Harvey Dos Iberica, S.L. that owned 100% of Vuelta Omega, S.L. until Decemberber 2015 when was merged into Harvey.

Amounts related to the consolidated accounts of Gaiashopping I- Centro Comercial, S.A. that owns 100% of Gaiashopping II- Centro Comercial, S.A..

Amounts related to the consolidated accounts of Norte Shopping Retail and Leisure Centre B.V. that owns 100% of Norteshopping- Centro Comercial, S.A..

Amounts related to the consolidated accounts of Sierra VdG Holding B.V. that owns 100% of Centro Vasco da Gama - Centro Comercial, S.A..

Amounts related to the consolidated accounts of SC Aeean BV that owns 100% of Aegean Park Constructions Real Estate and Development,

Amounts related to the consolidated accounts of Citic Capital Sierra Limited that owns 100% of Citic Capital Sierra Property Management (Shanghai) Limited.

Amounts related to the consolidated accounts of Colombo Towers Holding, B.V. that owned 50% of Torre Ocidente - Imobiliária, S.A. until July 2015, when was sold.

16) Amounts related to the consolidated accounts of Sonae Sierra Brasil B.V. Sarl. This company owns the following investments:

31.12.16 31.12.15Fundo Investimento Imobiliário Parque Dom Pedro Shopping Center 41.36% 41.36%Fundo Investimento Imobiliário Shop. Parque Dom Pedro 63.12% 63.12%Parque D. Pedro 1 B.V. Sarl 100.00% 100.00%Pátio Boavista Shopping, Ltda. 66.65% 66.65%Pátio Campinas Shopping, Ltda. - 66.65%Pátio Goiânia Shopping, Ltda. 66.65% 66.65%Pátio Londrina Empreendimentos e Participações, Ltda. 66.65% 66.65%Pátio São Bernardo Shopping Ltda 66.65% 66.65%Pátio Sertório Shopping Ltda 66.65% 66.65%Pátio Uberlândia Shopping Ltda 66.65% 66.65%Sierra Brazil 1 B.V. 100.00% 100.00%Sierra Investimentos Brasil Ltda 66.65% 66.65%Sonae Sierra Brasil, S.A. 66.65% 66.65%Unishopping Consultoria Imobiliária Lda 66.63% 66.63%

interests and votingrights held

Percentage of


During the years ended 31 December 2016 and 2015, the movement of investments in joint ventures was as follows:

The main acquisitions and sales of companies occurred during the years ended 31 De-cember 2016 and 2015 were as follows: Transactions in 2016: In February 2016, Sierra Investimentos Brasil, S.A. sold the entire share capital held in the company Pátio Campinas Shopping, Ltda by the amount of kEuro 18,409. This trans-action generated a gain of kEuro 1,687. In January 2016, Weiterstadt Shopping B.V. sold 41% of the share capital of the joint venture Loop 5 - Shopping Centre, GmbH (“Loop5”) by the amount of kEuro 38,215. This transaction generated a loss of kEuro 295 (net of expenses in the amount of kEuro 633 (Note 36). Since 1 January 2016, Loop5 is presented under the list of associated compa-nies (Note 6). Transactions in 2015: In March 2015, Sierra Asia Limited sold 50% of the share capital of the joint venture Citic Capital Sierra Limited for Euro 12. This transaction generated a gain of kEuro 81 (Note 36). In March 2015 the joint venture Larissa Development of Shopping Centres, S.A. (“Laris-sa”) made a capital increase of kEuro 13,025 that was subscribed by the joint venture Pantheon B.V. and by a new shareholder that becomes owner of 20% of the its share capital since that date. In December 2015 the joint venture Pantheon B.V. acquired those 20% by the amount of kEuro 100 becoming the sole shareholder of the company. This transaction generated a negative goodwill of kEuro 1,700 that was booked as an income as part of the net profit of the Pantheon B.V. In June 2015, the Group acquired 50% of the share capital of the joint venture Proyecto Cúcuta, S.A.S. by the amount of kEuro 7,971. This transaction generated a goodwill of kEuro 3,642 expensed in the consolidated statement of profit or loss in the line “Share of results of joint ventures and associates”.

ps owned by Sierra

BV

investment

companies

ps owned by Sierra

BV

investment

companiesOpening balance 582,243 45,285 9,879 237,692 875,099 454,575 67,066 (32) 5,533 307,404 834,546Loop5: - sale of 41% - (37,877) - - (37,877) - - - - - -

- (8,314) - - (8,314) - - - - - -Sale of Zubiarte - - - - - (4,801) - - - - (4,801)Transfer between business - 644 (644) - - - - - - -

7,624 - - - 7,624 - - - - - -Sale of Citic Capital Sierra Limited - - - - - - - 215 - - 215

22 - - - 22 - - - - - -Capital decrease (47,363) - - - (47,363) (11,769) (2,118) - - - (13,887)Capital increase - 9,018 4,539 - 13,557 2,352 430 - 8,290 - 11,072Liquidation effect - (6) - - (6) - - (10) (2,144) - (2,154)

Hedging reserve (hedge accounting) 394 - - - 394 (283) - - - - (283)Translation reserve - - 856 62,024 62,880 - - 17 (1,035) (78,999) (80,017)Net profit (Note 37) 157,620 22,936 (1,751) 17,021 195,826 147,596 (14,623) (190) (765) 14,137 146,155Dividends (19,750) - - (6,075) (25,825) (5,427) (5,470) - - (4,850) (15,747)

680,790 31,686 12,879 310,662 1,036,017 582,243 45,285 - 9,879 237,692 875,099

- transfer to associates of the remaining 9% (Note 6)

VdG Holding BV - transfer to joint venture

Effect of the application of the equity method:

Iberian- percentage change effect (acquisition of minorities)

2016

InvestmentDevelopment

s Brazil Total

2015 (Restated)

Investment

Services Developments Brazil Total


In July 2015, the Grupo sold 25% of the share capital of the joint venture Torre Ocidente Imobiliária, S.A. by the amount of kEuro 8,844. This transaction generated a gain of kEu-ro 2,935 registered as part of the net profit of Colombo Towers Holding B.V.. In December 2015, Sierra BV sold 50% of the share capital of the joint venture Zubiarte Inversiones Inmobiliarias, S.A. (“Zubiarte”) by the amount of kEuro 4,274. This transac-tion generated a loss of kEuro 526 (Note 36). As of 31 December 2016 and 2015 the summarised financial information (adjusted when applicable to comply with the Group accounting policies mentioned in Note 2) of the Group’s joint ventures, is as follows:


Other investment companies

Investment properties 2,805,884 474,809 27,964 1,322,348 4,631,005Other non-current assets 4,972 2,731 53 35,555 43,311Total non-current assets 2,810,856 477,540 28,017 1,357,903 4,674,316

Other current assets 19,836 22,342 2,791 36,282 81,251Cash and cash equivalents 59,285 25,795 314 76,004 161,398Total current assets 79,121 48,137 3,105 112,286 242,649

Non current bank loans and other facilities 469,700 225,212 - 169,966 864,878Other non-current liabilities 632,700 88,026 4,382 250,032 975,140Total non-current liabilities 1,102,400 313,238 4,382 419,998 1,840,018

Current bank loans and other facilities 399,618 16,499 - 17,143 433,260Other current liabilities 38,362 132,568 981 31,184 203,095Total current liabilities 437,980 149,067 981 48,327 636,355

Equity 1,349,597 63,372 25,759 1,001,864 2,440,592

Non-controlling interests - - - 380,540 380,540Equity attributable to the equity holders of the parent company

1,349,597 63,372 25,759 621,324 2,060,052

31 December 2016

Investment

Developments Brazil Total




Investment properties 2,496,982 501,391 134,518 1,022,708 4,155,599Other non-current assets 20,094 5,330 32 30,464 55,920Total non-current assets 2,517,076 506,721 134,550 1,053,172 4,211,519

Other current assets 23,302 10,318 12,080 32,884 78,584Cash and cash equivalents 66,913 13,101 7,076 62,568 149,658Total current assets 90,215 23,419 19,156 95,452 228,242

Non current bank loans and other facilities 716,314 328,664 21,321 160,002 1,226,301Other non-current liabilities 582,566 80,416 83,366 182,207 928,555Total non-current liabilities 1,298,880 409,080 104,687 342,209 2,154,856

Current bank loans and other facilities 123,564 10,347 7,010 13,598 154,519Other current liabilities 32,497 20,142 22,252 29,534 104,425Total current liabilities 156,061 30,489 29,262 43,132 258,944

Equity 1,152,350 90,571 19,757 763,283 2,025,961Non-controlling interests - - - 287,896 287,896Equity attributable to the equity holders of the parent company

1,152,350 90,571 19,757 475,387 1,738,065

31 December 2015 (Restated)Investment




Services rendered 169,254 29,638 - 99,234 298,126Variation in fair value of the investment properties 296,679 52,638 - 39,135 388,452Other revenue 16,256 2,228 - 1,979 20,463Depreciation and amortisation - (1) (12) (682) (695)Other expenses (40,411) (20,754) (826) (42,845) (104,836)Interest income and similar 26 427 44 11,468 11,965Interest expense and similar (19,000) (7,562) (75) (26,841) (53,478)Share of results of associates - - - 1,303 1,303Income tax (107,368) (10,392) - (21,797) (139,557)

Profit / (loss) from continuing operations 315,436 46,222 (869) 60,954 421,743

Net profit / (loss) 315,436 46,222 (869) 60,954 421,743

Attributable to:Equity holders of parent company 315,436 46,222 (869) 34,042 394,831Non-controlling interests - - - 26,912 26,912

315,436 46,222 (869) 60,954 421,743

Other comprehensive income for the period 790 148 11 127,009 127,958

Total comprehensive income for the period 316,226 46,370 (858) 187,963 549,701

Attributable to:Equity holders of parent company 316,226 46,370 (858) 158,087 519,825Non-controlling interests - - - 29,876 29,876

316,226 46,370 (858) 187,963 549,701

2016

Investment



6 ASSOCIATES

The details of associates of the Group as of 31 December 2016 and 2015 is as follows:



Services rendered 164,693 44,840 - 100,593 310,518Variation in fair value of the investment properties 294,300 (78,088) - 28,264 244,476Other revenue 1,781 12,847 1,463 498 16,588Depreciation and amortisation - - (2) (739) (742)Other expenses (40,112) (26,312) 4,428 (38,478) (101,255)Interest income and similar 2,638 46 171 13,557 16,413Interest expense and similar (21,166) (9,501) (68) (31,961) (62,697)Share of results of associates - 3,988 - 1,588 5,576Income tax (106,848) 22,934 (13) (6,423) (90,338)Profit / (loss) from continuing operations 295,286 (29,246) 5,979 66,899 338,539Net profit / (loss) 295,286 (29,246) 5,979 66,899 338,539

Attributable to:Equity holders of parent company 295,286 (29,246) 5,979 28,271 299,911Non-controlling interests - - - 38,628 38,628

295,286 (29,246) 5,979 66,899 338,539

Other comprehensive income for the period (565) - 2 (222,398) (222,960)

Total comprehensive income for the period 294,721 (29,246) 5,981 (155,499) 115,579

Attributable to:Equity holders of parent company 294,721 (29,246) 5,981 (129,721) 141,357Non-controlling interests - - - (25,778) (25,778)

294,721 (29,246) 5,981 (155,499) 115,579

2015

Investment


Net profit % own Carrying Proportion DividendsHead office Equity / (loss) (*) amount in P/L received

InvestmentALEXA Asset GmbH & Co, KG Dusseldorf (Germany) 433,633 31,057 9.00% 39,027 2,795 1,018

Goodwill Alexa 519Le Terrazze - Shopping Centre 1 Srl Milan (Italy) 79,746 10,315 10.00% 7,975 1,032 -

Goodwill Le Terrazze 544

1) 2) Loop5 Shopping Centre GmbH & Co KG Dusseldorf (Germany) 155,123 10,476 9.00% 13,961 943 -3) Iberia Shop.C. Venture Coöperatief U.A. ("Iberia Coop") Amsterdam (Netherlands) 212,759 17,055 10.00% 21,276 1,706 -

Goodwill Iberia Coop 403

4) 5) Sierra Portugal Real Estate ("SPF") Luxembourg 170,657 28,492 22.50% 38,398 6,411 -Goodwill SPF 3,852

Olimpo Real Estate SOCIMI, S.A. Madrid (Spain) 194,745 (1,951) 3.75% 7,303 (73) -Sonaegest - Soc. Gestora de Fundos de Investimento, S.A. Maia (Portugal) 1,481 310 20.00% 296 62 57

ServicesSierra Cevital Shopping Center, Spa Algeria 39 (60) 49.00% 19 (29) -

DevelopmentsZenata Commercial Project Morocco (569) (437) 11.00% (62) (48) -

133,511 12,799 1,075


31 December 2016


As mentioned in Note 2.2.b), associates are measured by using the equity method.

Net profit % own Carrying Proportion DividendsHead office Equity / (loss) (*) amount in P/L received

InvestmentALEXA Asset GmbH & Co, KG Dusseldorf (Germany) 413,884 14,351 9.00% 37,250 1,292 480

Goodwill Alexa 519Le Terrazze - Shopping Centre 1 Srl Milan (Italy) 69,430 2,288 10.00% 6,943 229 -

Goodwill Le Terrazze 5444) Sierra Portugal Real Estate ("SPF") Luxembourg 147,364 25,687 47.50% 69,999 12,201 -

Goodwill SPF 8,131

Sonaegest - Soc. Gestora de Fundos de Investimento, S.A. Maia (Portugal) 1,458 319 20.00% 291 64 57Services

Sierra Cevital Shopping Center, Spa Algeria 101 (78) 49.00% 49 (39) -Expansion

Zenata Commercial Project Morocco (122) (128) 11.00% (13) (14) -

123,713 13,733 537


31 December 2015

1) In January 2016 41% of the share capital of this joint venture was sold (Note 5). 2) Ex-Loop 5 - Shopping Centre, GmbH3) Amounts related to the consolidated accounts of "Iberia Coop". This company owns the following investments:

Head office 31.12.16 31.12.15

Algarveshopping- Centro Comercial, SA Maia (Portugal) 100% -Candotal Spain S.L.U Madrid (Spain) 100% -Estação Viana Centro Comercial, SA Viana do Castelo (Portugal) 100% -Funtobar Spain, S.L Madrid (Spain) 100% -Imoconti - Sociedade Imobiliária, SA Maia (Portugal) 100% -Luz del Tajo Centro Comercial, SA Madrid (Spain) 100% -Project Guia, S.A. Maia (Portugal) 100% -Project Sierra 8 BV Amsterdam (Netherlands) 100% -

Percentage ofinterests and voting

rights held

4) Amounts related to the consolidated accounts of "SPF". This company owns the following investments:

Head office 31.12.16 31.12.15

8ª Avenida Centro Comercial, S..A. Maia (Portugal) 100% 100%ALBCC Albufeirashopping C.Comercial S.A. Maia (Portugal) 100% 100%Arrábidashopping- Centro Comercial, S.A. Maia (Portugal) 50% 50%Gaiashopping I- Centro Comercial, S.A. Maia (Portugal) 50% 50%Gaiashopping II- Centro Comercial, S.A. Maia (Portugal) 50% 50%LCC LeiriaShopping Centro Comercial S.A. Maia (Portugal) 100% 100%Loureshopping- Centro Comercial, S.A. Maia (Portugal) 50% 50%PORTCC - Portimaoshopping C.Comercial S.A. Maia (Portugal) 100% 100%Rio Sul- Centro Comercial, S.A. Lisbon (Portugal) 50% 50%Serra Shopping- Centro Comercial, S.A. Lisbon (Portugal) 50% 50%

5) In March 2016 25% of the share capital of this associate was sold.

Percentage ofinterests and voting

rights held


During the years ended 31 December 2016 and 2015, the movement of investments in associates was as follows:

The main acquisitions and sales of companies occurred during 2016 were as follows: Transactions in 2016 In March 2016, the Group reduced its participation held in Sierra Portugal Fund in 25% by the amount of kEuro 41,000. This transaction generated a loss of kEuro 842 (net of expenses in the amount of kEuro 722) (Note 36). In March 2016, the Group acquired 10% of the associated Iberia Shopping Centre Ven-ture Cooperatief UA (“Iberia Coop”) by the amount of kEuro 11,120. This acquisition generated a “goodwill” of kEuro 110 which was recorded as cost in the consolidated statement of profit or loss in the item of “Share of results of joint ventures and associ-ates”. After this date the subsidiaries mentioned in note 7 were sold to Iberia Coop. As of 31 December 2016 and 2015 the summarised financial information (adjusted when applicable to comply with the Group accounting policies mentioned in Note 2) of the Group’s associates, is as follows:

Alexa Asset

Le Terrazze Loop 5

Iberia coop SPF Olimpo Sonaegest

Sierra Cevital Zenata Total

Opening balance 37,769 7,487 - - 78,130 - 291 49 (13) 123,713Iberia Coop - acquisition: - Equity held - - - 5,845 - - - - - 5,845 - Goodwill - - - 403 - - - - - 403SPF - sale of 25%: - Equity held - - - - (36,842) - - - - (36,842) - Goodwill - - - - (4,279) - - - - (4,279)

- - 8,314 - - - - - - 8,314Capital decrease - - - - (1,181) - - - - (1,181)Capital increase - - 4,704 13,647 - 7,376 - - - 25,727

Hedging reserve (hedge accounting) - - - 78 11 - - - - 89Translation reserve - - - - - - - (1) (1) (2)Net profit (Note 37) 2,795 1,032 943 1,706 6,411 (73) 62 (29) (48) 12,799Dividends (1,018) - - - - - (57) - - (1,075)

39,546 8,519 13,961 21,679 42,250 7,303 296 19 (62) 133,511

2016


Loop5 - transfer from joint ventures (Note 5)

Alexa Asset

Le Terrazze SPF Sonaegest

Sierra Cevital Zenata Total

Opening balance 20,478 7,258 65,903 284 95 1 94,019Capital increase 16,110 - - - - - 16,110

Hedging reserve (hedge accounting) 369 - 26 - - - 395Translation reserve - - - - (7) - (7)Net profit (Note 37) 1,292 229 12,201 64 (39) (14) 13,733Dividends (480) - - (57) - - (537)

37,769 7,487 78,130 291 49 (13) 123,713


2015

Alexa Asset

Le Terrazze

Loop 5 Iberia coop SPF Olimpo Sonaegest Sierra Cevital

Zenata

Total non-current assets 413,807 129,899 281,123 329,514 260,395 - 14 42 19,861Total current assets 23,316 26,267 21,579 59,742 8,470 194,987 1,773 600 4,343

Total non-current liabilities 720 74,440 130,021 145,181 92,002 - - 16 16,476

Total current liabilities 2,770 1,980 17,558 31,316 6,206 242 306 587 8,297

Equity 433,633 79,746 155,123 212,759 170,657 194,745 1,481 39 (569)

31 December 2016


7 ACQUISITION AND SALE OF COMPANIES

The main sales of companies occurring during the year 2016 were as follows: Sales of subsidiaries in 2016 During 2016 Luz del Lajo B.V. sold 100% of the shares of Luz del Tajo Centro Comercial S.A. (“Luz del Tajo”) and Sierra B.V. sold 100% of the shares of Estação Viana- Centro Comecial, S.A. (“Estação Viana”) and Project Sierra 8 B.V. which owns 100% of Al-garveshopping- Centro Comercial, S.A. (“Algarveshopping”) to Iberia Shopping Centre Venture Cooperatief UA (“Iberia Coop”) by the amount of kEuro 184,601. These transac-tions generated a net gain of kEuro 37,164 (net of expenses incurred in these transac-tions of kEuro 3,869) (Note 36). These companies were classified as held for sale in 2015. In December 2016, Sierra Investments Holding B.V. sold 100% of the shares of Project Guia, S.A. (“Project Guia”) to Iberia Shopping Centre Venture Cooperatief UA (“Iberia Coop”) by the amount of kEuro 951. This transaction generated a loss of kEuro 63 (Note 36).

Alexa Asset

Le Terrazze

SPF Sonaegest Sierra Cevital

Zenata

Total non-current assets 402,575 120,199 235,307 25 39 21,768

Total current assets 17,668 21,951 12,523 1,817 612 8,096

Total non-current liabilities 542 70,288 94,489 - 27 13,237Total current liabilities 5,817 2,432 5,977 384 523 16,749

Equity 413,884 69,430 147,364 1,458 101 (122)

31 December 2015

Alexa Asset

Le Terrazze Loop 5

Iberia coop SPF Sonaegest

Sierra Cevital Zenata

Variation in fair value of the investment properties 10,882 9,079 11,460 15,346 6,007 - - -Other revenue 29,734 11,508 15,553 28,500 14,393 1,012 488 2,415Expenses (9,559) (10,272) (16,537) (26,791) 8,092 (702) (548) (2,852)

Profit / (loss) from continuing operations 31,057 10,315 10,476 17,055 28,492 310 (60) (437)

Net profit / (loss) 31,057 10,315 10,476 17,055 28,492 310 (60) (437)

Other comprehensive income for the period - - - 777 50 - (2) (10)

Total comprehensive income for the period 31,057 10,315 10,476 17,832 28,542 310 (62) (447)

2016

Alexa Asset

Le Terrazze SPF Sonaegest

Sierra Cevital Zenata

Variation in fair value of the investment propertie 3,985 (1,954) 8,596 - - -Other revenue 28,347 11,038 13,823 1,043 509 -Expenses (17,981) (6,796) 3,268 (724) (587) (128)

Profit / (loss) from continuing operations 14,351 2,288 25,687 319 (78) (128)

Net profit / (loss) 14,351 2,288 25,687 319 (78) (128)

Other comprehensive income for the period 4,098 - 54 - - -

Total comprehensive income for the period 18,449 2,288 25,741 319 (78) (128)

2015


As the Group owns 10% of Iberia Coop, these companies sold are measured using the equity method. Effect of the acquisitions and sales The effect of the sales of the companies sold during the period ended in 31 December 2016 classified as held for sale at the end of 2015, was as follows:

The effect of the other sales occurring during 2016 was as follows:

Sales

Classified as held for sale in 2015

Assets classified as held for sale 289,273Intercompany elimination 8,139Capital decrease after 31 December 2015 (4,714)Dividends distributed after 31 December 2015 (6,463)Liabilities directly associated with assets classified as held for sale (147,226)Identifiable assets and liabilities at sales date 139,009Carrying amount of the investment in subsidiaries at selling date (Note 4) 4,559Transaction result:- Gain / (loss) on sale (Note 36) 41,033Sale amount (I) 184,601

Expenses incurred with the sale (II) 3,869

Net cash flow (I-II) 180,732

2016

Project Guia

Cash and cash equivalents (I) 9Investment properties under construction (Note 9) 1,015Accounts payable and other liabilities - current (3)Identifiable assets and liabilities at sales date 1,021Carrying amount of the investment in subsidiaries at selling date (Note 4) (7)Transaction Result:- Gain / (loss) on sale (Note 36) (63)Sale amount (II) 951

Net cash flow (II-I) 942

Sales2016


8 NON-CONTROLLING INTERESTS

As of 31 December 2016 and 2015, the details are as follows:

During the years ended 31 December 2016 and 2015 the movement in non-controlling interests was as follows:

As of 31 December 2016 and 2015 the summarised financial information of the subsidiar-ies with Non-controlling interests, before the elimination of intragroup balances and transactions, is as follows:

Net profit Carrying ProportionHead office Equity / (loss) % (*) amount in P/L

InvestmentSierra BV Amsterdam (Netherlands) 962,499 236,527 49.90% 480,292 118,028Land Retail BV Amsterdam (Netherlands) 158,380 33,616 17.81% 28,207 5,987Sierra Core Assets Holdings BV Amsterdam (Netherlands) (29) (28) 49.90% (14) (14)

508,485 124,001

31 December 2016

Net profit Carrying ProportionHead office Equity / (loss) % (*) amount in P/L

InvestmentSierra BV Amsterdam (Netherlands) 991,945 220,833 49.90% 494,981 110,196Land Retail BV Amsterdam (Netherlands) 68,325 22,847 35.63% 24,341 8,153

519,322 118,349


31 December 2015

Sierra BV Land Retail BVSierra Core

Assets Holdings BV

Total Sierra BV Land Retail BV Total

Opening balance 494,981 24,341 - 519,322 393,463 15,854 409,317Land BV - percentage change effect: - Equity held (Note 6) 4 17 - 21 - - -Effect acquisition minority interests in Iberian Asse (16) - - (16) - -Goodwill - - - - (27) (27)Capital decrease (124,101) - - (124,101) (9,481) - (9,481)Capital increase - - - - -Hedging reserve (hedge accounting) 379 - - 379 803 361 1,164Net profit 118,028 5,987 (14) 124,001 110,196 8,153 118,349Dividends (8,983) (2,138) - (11,121) - - -

480,292 28,207 (14) 508,485 494,981 24,341 519,322

2016 2015


Assets Holdings BV

Sierra BV Land Retail BV

Total non-current assets 1,075,375 367,292 - 948,785 68,439Total current assets 41,579 14,346 5 56,633 23Assets classified as held for sale - - - 290,023 -

Total non-current liabilities 122,517 216,106 - 137,096 -Total current liabilities 31,938 7,152 34 18,837 137Liabilities directly associated with assets classified as held for sale - - - 147,563 -

Equity 962,499 158,380 (29) 991,945 68,325

31 December 2015 (Restated )31 December 2016


9 INVESTMENT PROPERTIES

The movement in investment properties, during the years ended 31 December 2016 and 2015 was as follows:

Increases in investment properties under development as cost, in the amounts of kEuro 2,559 and kEuro 21,727 in the years ended 31 December 2016 and 2015, respectively, relates to a project in Germany which estimated opening date is 2019. The amount of kEuro 273,500 recorded in “Transfer to assets available for sale” refers to assets that were classified as held for sale at the end of 2015.


Assets Holdings BV

Sierra BV Land Retail BV

Variation in fair value of the investment properties 28,373 32,257 - 46,477 -Services rendered and other revenue 70,223 27,340 - 46,698 -Other revenue/(expenses) 137,931 (25,981) (28) 127,658 22,847

Profit / (loss) from continuing operations 236,527 33,616 (28) 220,833 22,847

Net profit / (loss) 236,527 33,616 (28) 220,833 22,847

Other comprehensive income for the period 760 - - 1,607 1,013

Total comprehensive income for the period 237,287 33,616 (28) 222,440 23,860

20152016

under developmentin operation "Fit Out" at cost Advances Total

Opening balance 691,785 2,139 44,746 1,725 740,395Increases 6,079 (125) 2,559 - 8,513Impairments and write-off - - (7,285) - (7,285)Sales - - (427) - (427)Fit-out receivables - (834) - - (834)Transfers - - - - -Variation in fair value of the investment properties

between years (Note 31): - Gains 69,290 402 - - 69,692 - Losses (4,349) - - - (4,349)

Currency translation differences - - 28 - 28Closing balance 762,805 1,582 39,621 1,725 805,733

2016

Investment properties

under developmentin operation "Fit Out" at cost Advances Total

Opening balance 864,480 1,927 23,492 1,725 891,624Increases 4,389 - 21,727 - 26,116Receivables - 612 - - 612Fit-out receivables - (333) - - (333)Variation in fair value of the investment properties

between years (Note 31): - Gains 96,253 243 - - 96,496 - Losses - (147) - - (147)

Transfer to assets held for sale (Note 3) (273,337) (163) - - (273,500)Currency translation differences - - (473) - (473)Closing balance 691,785 2,139 44,746 1,725 740,395

2015 (Restated)

Investment properties


At 31 December 2016 and 2015 investment properties in operation and the information about the fair value assessment are as follows:

The fair value of each investment property was determined by means of a valuation as of the reporting date made mainly by independent specialised entities (Cushman & Wake-field and Jones Lang LaSalle). The valuation of these investment properties was made in accordance with the Practice Statements of the RICS Appraisal and Valuation Manual published by The Royal Institu-tion of Chartered Surveyors (“Red Book”), located in England. The methodology used to compute the market value of the investment properties con-sists in preparing 10 years’ projections of income and expenses of each shopping centre added to the residual value, corresponding to a projected net income at year 11 and a return market rate (“Exit yield" or "cap rate"). These projections are then discounted to the valuation date using a discount market rate. Projections are intended to reflect the actual best estimate of the valuer regarding future revenues and costs of each shopping centre. Both the return rate and discount rate are defined in accordance to the local real estate and institutional market conditions, being the reasonableness of the market value obtained in accordance to the methodology referred above, tested also in terms of initial return using the estimated net income for the first year of projections. In the valuation of investment properties, some assumptions, that in accordance with the Red Book are considered to be special, were in addition considered, namely in the case of recently inaugurated shopping centres, in which the possible costs still to be incurred were not considered, as the accompanying financial statements already include a provi-sion for them. IFRS 13 (Fair value measurement) requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within level 1 that are observable. Level 3: Inputs that are not based on observable market data (that is, unobservable

inputs).

Portugal / Spain

Other European Countries

Portugal / Spain

Other European Countries

10 yr discount rateFloor 7.50% 8.50% 8.00% 9.05%Weighted average 8.29% 8.84% 8.89% 9.34%Cap 10.85% 10.30% 11.41% 10.30%

10 yr cap rateFloor 5.75% 6.75% 6.25% 7.30%Weighted average 6.41% 7.08% 7.07% 7.58%Cap 9.10% 8.50% 9.50% 8.50%

Annual rent per sqm (€)Floor 15 14 14 13Weighted average 24 17 23 17Cap 51 21 49 20

Fair Value (Level 3) 650,260 112,545 584,037 107,748

31.12.2016 31.12.2015 (Restated)


Considering the above hierarchy investments properties of the Group are all within Level 3. The relationship of unobservable inputs to fair value can be described as follows: - A decrease in the estimated annual rent will decrease the fair value; - An increase in the discount rates and the capitalization rates will decrease the fair

value. As mentioned in the valuation reports of the investment properties prepared by inde-pendent specialised entities, the assessment of their fair value considered the definition of fair value in IFRS 13, which is consistent with the definition of market value defined by the investment properties valuation international standards. As of 31 December 2016 and 2015, the fair value of the fit out contracts existing in each investment property was as follows:

The fair value of the fit-out contracts was determined by means of a valuation as of the reporting date made by an independent specialised entity (Cushman & Wakefield and Jones Lang LaSalle). The methodology used to compute the fair value of the fit-out con-tracts consisted in determining the discounted estimated cash flows of each one of the fit-out contracts, using a discounted market rate like the one used in determining the fair value of the investment property to which each fit out contract relates. During the years ended on 31 December 2016 and 2015, the income (fixed rents net of discounts, turnover rents, mall income, key income, and transfer fees) and the corre-sponding direct operating expenses (property tax, insurance expense, maintenance ex-pense, management fee and asset management fee and other direct operating expens-es), relating to the investment properties of the Group, was as follows:

At 31 December 2016 and 2015 the following investment properties had been given in guarantee of bank loans: Alverca Guimarãeshopping Cascaishopping Maiashopping Coimbrashopping Plaza Mayor Parque de Ócio Dos Mares Plaza Mayor Shopping Gli Orsi River Plaza Mall

At 31 December 2016 and 2015 there were no material contractual obligations to pur-chase, construct or develop investment properties or for repairs or maintenance, other than those referred to above, except for the obligations mentioned in notes 40 and 41.

Floor Weighted average

Cap Floor Weighted average

Cap Amount Floor Weighted average

Cap Floor Weighted average

Cap Amount

Portugal / Spain 9.28% 9.83% 10.85% 6.55% 7.90% 9.10% 1,582 10.55% 8.52% 11.41% 8.80% 7.00% 9.50% 2,1391,582 2,139

31.12.2016 31.12.2015 (Restated)10 yr discount rate 10 yr cap rate 10 yr discount rate 10 yr cap rate

Portugal / Spain 43,622 71,433 3,531 4,076Other European Countries 8,604 8,587 1,016 994

52,226 80,020 4,547 5,070

Rents Direct operating expenses

31.12.2016 31.12.201631.12.2015 31.12.2015


Investment properties under development at 31 December 2016 and 2015 are made up as follows:

The amounts of kEuro 64,051 and kEuro 56,951 at 31 December 2016 and 2015, respec-tively, recorded under caption “Impairment for assets at risk”, relates to the provision made to anticipate losses due to the delays on the development of some of the pipeline due to market uncertainty. In the year ended in 31 December 2016, the Group increased the impairment for assets at risk in the amount of kEuro 7,215, in order to illustrate the development expectation of the properties as well the economic environment of the country where they are located.

10 PROPERTY, PLANT AND EQUIPMENT

The movement in property, plant and equipment and corresponding accumulated depre-ciation during the years ended 31 December 2016 and 2015 was as follows:

11 GOODWILL

The movement in goodwill during the years ended 31 December 2016 and 2015 was as follows:

Investment properties at cost:Portugal / Spain 15,113 15,709Other european countries 90,284 87,713

105,397 103,422

Impairment for assets at risk (64,051) (56,951)

41,346 46,471

31.12.2016 31.12.2015 (Restated)

Buildings Machinery Other Tangibleand other and Transport dministrative Tools and tangible fixed assets

constructions equipment equipment equipment utensils fixed assets in progress Total TotalAssets:

Opening balance 1,153 1,333 160 3,260 244 1,213 17 7,380 7,185Increases 1,033 19 29 61 8 7 - 1,157 264Sales - (52) (36) (64) (9) (55) - (216) (6)Transfers and write-off (70) (33) - (69) (21) (164) - (357) (65)Currency translation differences - - (1) (6) - - - (7) (1)Closing balance 2,116 1,267 152 3,182 222 1,001 17 7,957 7,377

Accumulated depreciation and impairment losses:

Opening balance 639 1,001 88 2,970 243 1,099 - 6,040 5,668Depreciation for the year 125 61 22 101 23 47 - 379 443Sales - (40) - (61) (9) (54) - (164) (4)Transfers and write-off (26) (33) (8) (52) (21) (162) - (302) (64)Currency translation differences - - - (5) - - - (5) (3)Closing balance 738 989 102 2,953 236 930 - 5,948 6,040

Net assets 1,378 278 50 229 (14) 71 17 2,009 1,337

31.12.201631.12.2015 (Restated)

2016 2015

Opening balance 4,274 7,193Transfer to assets held for sale - (2,919)Closing balance 4,274 4,274


At 31 December 2016 and 2015 goodwill was made up as follows:

The impairment tests made to the goodwill are based on the “Net Asset Value” (“NAV”) at the reporting date of the participations held.

12 INTANGIBLE ASSETS

The movement in intangible assets and corresponding accumulated depreciation during the years ended 31 December 2016 and 2015 was as follows:

13 OTHER NON CURRENT ASSETS

At 31 December 2016 and 2015 other non-current assets were made up as follows:

The amount of kEuro 2,432 relates to the deposit in official entities of rents received from tenants of shopping centres located in Spain (Dos Mares). The rent deposits received from tenants are classified under “Other non-current liabilities” (Note 22) and “Other payables” (Note 27).

31.12.2015Year of Carrying Carrying

aquisition Amount Amount

Dos Mares 2005 1,298 1,298River Plaza Mall 2007 1,334 1,334Gli Orsi 2008 1,642 1,642

4,274 4,274

31.12.2016

31.12.2015

SoftwareOther intangible

assets Total TotalAssets:

Opening balance 4,853 11,799 16,652 16,140Increases 1 - 1 637Sales, disposals and regularisations - (43) (43) (125)Closing balance 4,854 11,756 16,610 16,652

Accumulated depreciation and impairment losses:

Opening balance 2,240 11,706 13,946 13,261Depreciation for the year 641 23 664 685Sales, disposals and regularisations - (1) (1) -Closing balance 2,881 11,728 14,609 13,946

Net assets 1,973 28 2,001 2,706

31.12.2016

31.12.1631.12.15

(Restated)

Malaga City Council 605 620Rent deposits from tenants 2,432 2,364Bank and other guarantees 180 185Other non current assets 427 274

3,644 3,443


The amount of kEuro 605 due by the Municipal Council of Malaga (“MCM”) relates to works developed by Plaza Mayor Parque de Ocio, S.A. (kEuro 515) and Plaza Mayor Shopping, S.A. (kEuro 90) on behalf of the Municipal Council of Malaga at the surround-ings of the Plaza Mayor Shopping centre.

14 TRADE RECEIVABLES

At 31 December 2016 and 2015 trade receivables were made up as follows:

The Group’s exposure to credit risk is attributed to accounts receivable relating to the operating activity of the Group. The amounts shown in the statement of financial position are net of the corresponding impairment losses on accounts receivable, which were esti-mated by the Group, based on the experience of the Group and assessment of the eco-nomic environment. The Board of Directors believes that the carrying amount of its trade receivables is similar to the corresponding fair value. The Group does not have a signifi-cant concentration of credit risk, as that risk is diluted over a variety of different tenants. Per the information included in the statement of financial position, the ageing of the trade receivables is as follows:

31.12.1631.12.15

(Restated)

Accounts receivable from customers:Portugal 20,042 23,236

Spain 4,121 4,180

Italy 886 544

Germany 2,572 2,902

Greece 60 86

Romania 8,494 6,474

Other costumers 448 47036,623 37,892

(15,467) (16,255)21,156 21,637

Accumulated impairment losses on accounts receivable from customers (Note 29)

31.12.1631.12.15

(Restated)Not due 3,046 2,356Due but not impaired:

0-30 days 3,533 6,036

30-90 days 2,936 2,982

+ 90 days 11,641 10,263

Due and impaired:0-90 days 314 56290-180 days 324 320180-360 days 620 550+ 360 days 14,209 14,823

36,623 37,892


15 OTHER RECEIVABLES

At 31 December 2016 and 2015 other receivables were made up as follows:

The amount of kEuro 4,247 includes:

- the amount of kEuro 3,707 regarding the payment made in 2013 by Sonae Sierra

SGPS, S.A. within the Special Tax Debts Payment Regime (RERD) established by the Portuguese government in the law approved in October 2013 (Law 151-A/2013) by which the entities that pay the tax notification will be exempt of the payment of in-terest and penalties; this amount relates to corrections of the 2005 CIT due to: (i) non-deductible interest expenses amounting to kEuro 378; and (ii) corrections con-cerning the price adjustment related with the sale of shares of Cascaishopping in 1996 amounting to kEuro 3,329. The company contested the tax notifications re-ceived and did not record any impairment loss to face eventual losses on those amounts, as the Board of Directors believes that the result will be favourable to the company.

- the amount of kEuro 518 related to tax notifications on the income tax statements relating to years 1991 to 1997 paid by Cascaishopping – Centro Comercial, S.A. (“Cascaishopping”) to tax authorities. The corrections proposed by tax authorities re-late basically to the depreciation policy of improvements made in third parties proper-ty that, for tax purposes, were being depreciated over five years and that the Tax Au-thorities believe should be depreciated over 50 years. Cascaishopping contested the tax notifications received and did not record any impairment to cover eventual losses on those amounts, as the Board of Directors believes that the result will be favourable to Cascaishopping.

The amount of kEuro 2,224 under "Escrow Account" is related to an escrow account from 2005 relating to a lawsuit from a tenant, on which the court requested that the Group made a deposit of kEuro 2,224, in the event of the case being won by the tenant. Alt-hough the case has been won by the Group, the amount was incorrectly paid to the ten-ant. Therefore, a full refund of the amount paid is expected as the court's decision has been favourable to the Group. The Group’s exposure to credit risk is attributed to accounts receivable relating the oper-ating activity of the Group. The amounts shown in the statement of financial position are net of the corresponding impairment losses on accounts receivable, which were estimat-ed by the Group, based on the experience of the Group and assessment of the economic environment. The Board of Directors believes that the carrying amount of its trade re-

31.12.1631.12.15

(Restated)Rent deposits from tenants (Note 13) - 2Sale of shares of Zubiarte - 3,086Sale of shares of Project Guia 951 -Tax notification paid 4,247 4,247Escrow account 2,224 2,224Advances to suppliers 3,327 1,587Other 3,023 1,966

13,772 13,112

Accumulated impairment losses on other receivables (Note 29) (1,608) (1,587)12,164 11,525


ceivables is similar to the corresponding fair value. The Group has not a significant con-centration of credit risk, as that risk is diluted over a variety of different tenants.

16 OTHER CURRENT ASSETS

At 31 December 2016 and 2015 other current assets were made up as follows:

The increase in “Interest income receivable” for the year ended 31 December 2016, is partly related to the interests on the advance for future capital made by the Group on behalf of the partner of Parklake (kEuro 2,189).

17 CASH AND CASH EQUIVALENTS

At 31 December 2016 and 2015 cash and cash equivalents were made up as follows:

The amounts of kEuro 7,389 and kEuro 7,359 at 31 December 2016 and 2015, respec-tively, relates to the guarantees made by the tenants. These amounts received from ten-ants are classified under “Other non-current liabilities” (Note 22) and “Other payables” (Note 27). The bank deposits include deposits made by several companies included in the consolida-tion, repayable in less than three months of inception and that bear interest at market interest rates.

31.12.1631.12.15

(Restated)Interest income receivable 6,323 3,509Variable rents receivable 3,255 3,241Recovered costs receivable 1,247 891Insurance 315 380Deferred costs with financing 223 262Key Money 260 388Management and administration services receivable 2,440 1,528Others 929 1,544

14,992 11,743

31.12.201631.12.2015 (Restated)

Cash 182 524Bank deposits 142,057 85,909Bank deposits-tenants retentions 7,389 7,359

149,628 93,792Bank overdrafts (Note 19) - (28,844)

149,628 64,948


18 SHARE CAPITAL AND LEGAL RESERVES

At 31 December 2016 the share capital was made up of 32,514,000 fully subscribed and paid up ordinary shares of Euro 4.99 each. The following entities own the share capital at 31 December 2016 and 2015: Entity 2016 2015 Sonae SGPS. S.A. 50.00% 50.00% Grosvenor Investments (Portugal), Sarl 50.00% 50.00% At 31 December 2016 and 2015 the legal reserves were as follows:

Legal reserve: According to the company law, at least 5% of the annual net profit, if pos-itive, should be used in the reinforcement of the legal reserve until it represents 20% of the capital. This reserve can only be distributed in case of liquidation of the company but can be used to cover losses after the other reserves have been used or can be incorpo-rated in the share capital. As mentioned in the Portuguese commercial code, and in consequence of the capital re-duction in 2003, Sonae Sierra recorded a special reserve, to which the rules of the legal reserve apply, by an amount equivalent to the nominal amount of the shares extin-guished (kEuro 24,880).

19 BANK LOANS

At 31 December 2016 and 2015 bank loans obtained were made up as follows:

31.12.16 31.12.15Legal reserve 32,449 32,449Special reserve 24,880 24,880

57,329 57,329

Non Non

Limit Current current Limit Current currentBond Loans:

Sonae Sierra SGPS 75,000 - 75,000 75,000 - 75,000Total Bond Loans 75,000 - 75,000 75,000 - 75,000

Bank Loans:Portugal/Spain

a),b) 196,921 16,069 180,852 197,514 58,894 138,620a) 46,820 6,744 40,076 53,320 6,499 46,821n.a. 20,000 - 20,000 20,000 - 20,000

263,741 22,813 240,928 270,834 65,393 205,441Other European Countries

a),b) 59,503 5,963 53,540 71,022 55,196 15,826

Total Bank Loans 323,244 28,776 294,468 341,856 120,589 221,267

Deferred bank expenses incurred on the issuance of bank debt (780) (2,313) (562) (1,216)398,244 27,996 367,155 416,856 120,027 295,051

Fair value of the financial hedging instruments - liability - 1,319 - 7,117

27,996 368,474 120,027 302,168

(a) To guarantee the repayment of these loans, the Group pledged the real estate properties owned by these companies.(b) To guarantee the repayment of these loans, the Group pledged the shares of the related subsidiaries.

31.12.2016 31.12.2015 (Restated)

Used amount Used amount


Bank loans bear interest at market interest rates and were all contracted in Euro. At 31 December 2016 and 2015 the covenants in force can be detailed as follows:

Bank loans with covenants were analysed by the Group at the reporting date and, when-ever breaches to these covenants occurred the classification of the current portion was made accordingly. This situation has occurred in case of the loan obtained by River Plaza. Negotiations are on-going to obtain a debt rescheduling with the correspondent bank. At 31 December 2016 and 2015, loans and the respective interest are repayable as fol-lows:

At 31 December 2016 and 2015, the Group’s financial instruments related to interest rate swaps and zero cost collars were as follows:

Non Non

Limit Current current Limit Current current

"Covenants":"Loan to Value", "Debt Service Cover Ratio" (1),(2) 83,931 18,104 65,827 88,374 4,444 83,930"Loan to Value", "Interest Cover Ratio" (1),(3) 59,503 5,963 53,540 71,021 55,196 15,825"Loan to Value", "Debt Service Cover Ratio", "Annual EBITDA" (1),(2),(5) 140,000 - 140,000 137,999 56,300 81,699"Debt to equity cover ratio" (4) 4,665 2,666 1,999 7,331 2,666 4,665

(1) "Loan to Value": Financial liabilities / Fair value of the investment property(2) "Debt Service Cover Ratio": Cash flow / (Paid interests plus capital amortization)(3) "Interest Cover Ratio": Cash flow / Paid interests(4) "Debt to equity cover ratio": Equity / Financial liabilities(5) "Annual EBITDA"

31.12.16


31.12.15 (Restated)

Repayment Interest Repayment InterestYear N+1 28,776 9,913 120,589 8,273Year N+2 131,679 7,188 28,789 7,380Year N+3 64,889 4,018 134,918 4,494Year N+4 4,199 3,643 66,217 1,148Year N+5 45,500 3,170 6,143 664Year N+6 and following years 123,201 3,460 60,200 2,593

398,244 31,392 416,856 24,552

31.12.2016 31.12.2015 (Restated)

Loan Asset Liability Loan LiabilityFinancial hedging instruments: "Swaps":

Gli Orsi / ING (*) 41,300 79 - 51,818 818Plaza Mayor Shopping / Novo Banco 27,010 - 239 28,860 725River Plaza / Société Générale 9,102 - 1,080 19,204 1,944

79 1,319 3,487 "Options":

Cascaishopping / Santander (*) 45,000 435 - - -Cascaishopping / ING (*) 25,000 266 - - -Land Retail / Santander (*) 35,000 338 - - -Land Retail / ING (*) 35,000 373 - - -

1,412 - -1,491 1,319 3,487

Financial hedging instruments ineffective:Plaza Mayor Shopping / BPI Madrid - - - 28,860 578Sierra BV / BPI Madrid - - - - 1,719Sonae Sierra SGPS / Novo Banco - - 512Sonae Sierra SGPS / BPI Madrid - - 821

- - 3,630

1,491 1,319 7,117

75,000 75,000

instrument instrument

31.12.2016 31.12.2015 (Restated)Fair value of the Fair value of thefinancial hedging financial hedging


The fair value of the effective financial hedging instruments was recorded under hedging reserves of the Group (kEuro -1,120 and kEuro -3,125 in 31 December 2016 and 2015, respectively) and hedging reserves of the non-controlling interests (kEuro -119 and kEuro -362 in 31 December 2016 and 2015, respectively). The interest rate swaps and zero cost collars are stated at their fair value at the reporting date, determined by the valuation made by the bank entities, with which the derivatives were contracted. The computation of the fair value of these financial instruments was made taking into consideration the reporting date, the update of the future cash-flows relating to the difference between the interest rate to be paid by the company to the bank entity, with which the swap or collar was negotiated, and the variable interest rate to be received by the company from the bank entity that granted the loan. In addition, tests to the fair value of those derivative financial instruments were made by the treas-ury department of the Group, to validate the fair value determined by those entities. The main hedging principles used by the Group when negotiating these hedging financial instruments are as follows:

- Matching between the cash-flows paid and received: the dates of interest payments of the loans obtained and their date of the derivatives flows with the bank are the same;

- Matching in the index interest rate used: the reference index interest rate used in the derivatives and in the loan are the same;

- In a scenario of increase or decrease in interest rates, the maximum amount of in-terest payable is perfectly calculated.

20 OTHER BANK LOANS

At 31 December 2016 and 2015 other bank loans were made up as follows:

Limit Current Limit CurrentShort term facilities:

SPF - Sierra Portugal 6,500 - 6,500 -Cascaishopping - C.C., S.A. - - 1,746 -Sierra B.V. 8,000 - 8,000 -Sierra Portugal, S.A. 249 - 249 -Sonae Sierra, SGPS, S.A. 55,000 25,000 72,970 25,000

69,749 25,000 89,465 25,000

Bank overdrafts (Note 17) 44,720 - 42,970 28,844114,469 25,000 132,435 53,844

31.12.2015 (Restated)31.12.2016


21 SHAREHOLDERS LOANS

At 31 December 2016 and 2015 shareholder loans were made up as follows:

The amount of kEuro 15,216 relates to advances made by Project Sierra 10 B.V. to PLP S.a.r.l. for the increase of share capital in Parklake. These advances are subject to inter-ests (Note 16).

Asset Current Non-Current Current Non-CurrentLoans receivable:

Project Sierra 10 BV:Parklake Shopping, S.A. 15,216 - - 17,168PLP S.a.r.l. 15,216 12 - 8,278Plenerg Srl - 12 - -

30,432 24 - 25,446Sierra Developments Holding BV

Parklake Shopping, S.A. - 22,275 - 22,276Park Avenue Development of Shopping Centres S.A - 2,191 - 2,149

- 24,466 - 24,425Sierra BV:

Arrábidashopping - Centro Comercial, S.A. - 7,072 - 7,072Iberian Assets, S.A. - 8,330 - 11,704Parque Atlântico Shopping-C.Comerc., S.A. - - - 350Shopping Centre Colombo Holding BV - 9,000 - 9,000

- 24,402 - 28,126Sierra Investments Holding BV:

Freccia Rossa - Shopping Centre, Srl - 22,433 - 21,582Zubiarte Inversiones Inmobiliarias, S.A. - - - -

- 22,433 - 21,582Sierra Solingen Holding GmbH:

Solingen Shopping Center GmbH - 14,937 - 14,937- 14,937 - 14,937

Sierra Zenata Project BV:Zenata Commercial Project 2,096 - - 1,954

2,096 - - 1,954Sierra VdG Holding BV:

Centro Vasco da Gama - Centro Comercial, S.A. - - 76 7,596- - 76 7,596

Plaza Mayor Parque d'Ócio BV:Doc Malaga Holding, S.L. 4 377 - -

4 377 - -32,532 86,639 76 124,066

31.12.16 31.12.15 (Restated)

Current Non-Current Current Non-CurrentLoans payable to:

SIERRA Investments (Luxembourg) 1 S.A. ("Luxco 1"):Plaza Mayor Shopping B.V. - 2,065 - 2,037

- 2,065 - 2,037SIERRA Investments (Luxembourg) 2 S.A. ("Luxco 2"):

Plaza Mayor Shopping B.V. - 1,652 - 1,630- 1,652 - 1,630

Shopping Centre Parque Principado B.V.Harvey Dos Iberica, S.L. 3,764 - 3,864 -

3,764 - 3,864 -

3,764 3,717 3,864 3,667

Liability

31.12.16 31.12.15 (Restated)


The amounts payable to Luxco 1 and Luxco 2 relate to shareholder loans payable by the subsidiaries of Sierra BV to the other shareholders of Sierra BV. These loans bear interest at market interest rates and were contracted in Euro.

22 OTHER NON CURRENT LIABILITIES

At 31 December 2016 and 2015 other non-current liabilities were made up as follows:

23 DEFERRED TAXES

Deferred income tax assets and liabilities at 31 December 2016 and 2015, in accordance with the temporary differences that generate them, are made up as follows:

Deferred income tax assets relating to the fair value of the financial hedging instruments were recorded under hedging reserves of the Group (kEuro 181 and kEuro 627 at 31 De-cember 2016 and 2015, respectively) and under hedging reserves of the non-controlling interests (kEuro 30 and kEuro 90 at 31 December 2016 and 2015, respectively).

31.12.1631.12.15

(Restated)Rents deposits from tenants (Note 13 and 17) 8,399 8,367Other non current accounts payable 272 208

8,671 8,575

31.12.201631.12.2015 (Restated) 31.12.2016

31.12.2015 (Restated)

Difference between the fair value and tax cost of tangiblefixed assets and intangible assets - - 125,845 106,886

Difference between the fair value and tax costof the fit-out contracts and the correspondent tax basis - - 86 (32)

Write-off of deferred income relating entrance fees (key money)and expenses relating the opening of shopping centres - - (852) (645)

Fair value of hedging financial instruments 231 715 22 -Tax losses carried forward 2,262 2,712 - -Impairment losses on accounts receivable from customers 162 295 - -Impairment losses on other assets and write-off of deferred costs 224 547 - -

2,879 4,269 125,101 106,209

Deferred tax assets Deferred tax liabilities


The movement in deferred income tax assets and liabilities during the years ended 31 December 2016 and 2015 was as follows:

The deferred income tax assets related to tax losses carried forward as of 31 December 2016 and 2015 are made up as follows:

At the end of 2016 a revision of the tax losses likely to be recovered in the future was carried out and only deferred tax assets related to tax losses which future recovery is probable to occur, were recognised.

Asset Liability Asset Liability

Opening balance 4,269 106,209 7,704 126,623Effect in net result:

Difference between fair value and tax cost oftangible fixed assets and intangible assets (10) 19,316 (11) 26,268

Difference between fair value and tax cost of the fit-out contracts - 95 - (36)

Write-off of movements ocurred in the year in deferred income relating key money and expenses related to the opening of shopping centers - (224) (55) (273)

Increase / (Decrease) of impairment losses not accepted for tax purposes (132) - - - Increase / (Decrease) of tax losses carried forward (450) - (1,480) -Effect of change in tax rate (Note 24) - - (1) (816)Sub-total (Note 24) (592) 19,187 (1,547) 25,143

Effect in equity:Valuation of hedging financial instruments (484) 22 (1,529) -

Currency translation differences - (5) (4) (28)

Transfer to assets held for sale (Note 3) - - (243) (45,417)

Others (314) (312) (112) (112)

Closing balance 2,879 125,101 4,269 106,209

31.12.2016 31.12.2015 (Restated)

Tax Deferred tax Tax Deferred taxloss asset loss asset

Spain:Without limit of use 8,252 2,063 9,617 2,404

Italy:Without limit of use 41 10 41 10

Germany:Without limit of use 1,195 189 1,885 298

9,489 2,262 11,543 2,712

31.12.2016 31.12.2015 (Restated)


At the reporting date the tax losses carried forward for which no deferred taxes were recognised are as follows:

Tax Deferred tax Limit Tax Deferred tax Limitloss credit expire date loss credit expire date

Portugal:Generated in 2012 1,214 255 2017 1,074 226 2017Generated in 2013 3,538 743 2018 3,927 825 2018Generated in 2014 7,580 1,592 2026 7,580 1,592 2026Generated in 2015 263 55 2027 213 45 2027Generated in 2016 8,794 1,847 2028 - -

21,389 4,492 12,794 2,688Spain:

Without limit of use 49,122 12,280 54,903 13,726Italy:

Without limit of use 5,124 1,230 6,936 1,665Germany:

Without limit of use 39,646 12,294 40,863 12,550Greece:

Generated in 2011 329 95 2016 329 95 2016Generated in 2012 284 82 2017 284 82 2017Generated in 2013 273 79 2018 273 79 2018Generated in 2014 300 87 2019 300 87 2019Generated in 2015 114 33 2020 152 44 2020Generated in 2016 296 86 2021 - -

1,596 463 1,338 388Netherlands:

Generated in 2007 - - 2,426 546 2016Generated in 2008 8,198 1,845 2017 10,160 2,286 2017Generated in 2009 81 18 2018 81 18 2018Generated in 2010 15,259 3,433 2019 17,391 3,913 2019Generated in 2011 565 127 2020 565 127 2020Generated in 2012 394 89 2021 409 92 2021Generated in 2013 10,067 2,265 2022 1,878 423 2022Generated in 2014 5,571 1,253 2023 2,808 632 2023Generated in 2015 20,218 4,549 2024 1,036 233 2024Generated in 2016 3,970 893 2025 - -

64,322 14,472 36,755 8,269Romania:

Generated in 2009 8,173 1,308 2015 8,874 1,420 2015Generated in 2010 2,078 333 2017 2,090 334 2017Generated in 2011 2,103 336 2018 2,147 343 2018Generated in 2012 2,516 403 2019 2,668 427 2019Generated in 2013 2,512 402 2020 2,520 403 2020Generated in 2014 1,101 176 2021 1,105 177 2021Generated in 2015 1,126 180 2022 1,678 269 2022Generated in 2016 1,086 174 2023 - -

20,694 3,311 21,082 3,373Others:

Generated in 2013 - - 255 51 2020Generated in 2014 - - 733 147 2021Generated in 2015 - - 563 113 2022Generated in 2016 8 2 2023 1,850 327 2023Without limit of use 70 19 - -

79 22 3,401 637

201,972 48,563 178,072 43,296

31.12.16 31.12.15


24 INCOME TAX

Income tax for the years ended 31 December 2016 and 2015 is made up as follows:

The numerical reconciliation between tax expense and the accounting profit multiplied by the applicable tax rate, during the years ended 31 December 2016 and 2015 is as fol-lows:

The amount of kEuro 12,067 under “Other permanent differences and tax losses for which the recoverability is not probable” (kEuro -1,198 in 2015) includes the effect of: - Non-recognition of the deferred tax assets related to the tax losses carried forward of the companies for which the Group was not certain about its future recovery (Sonae Sier-ra, Sierra BV, Sierra Greece, Sierra Italy, Sierra Turkey and River Plaza in 2016) (Alver-ca, Project Sierra Germany 2 (two), Sierra Greece, Sierra Italy, Sierra Turkey, Sierra Asia and River Plaza in 2015).

25 ACCOUNTS PAYABLE TO SUPPLIERS

At 31 December 2016 and 2015 accounts payable to suppliers were made up as follows:

As of 31 December 2016 and 2015, this caption relates to amounts payable resulting from purchases made in the normal course of the Group’s activities. As of 31 December

2016 2015

Current tax 4,621 7,036Deferred tax (Note 23) 19,779 26,690

24,400 33,726

2016 2015

Profit before income tax 329,599 293,821

Gains/losses related to the sale of companies (35,711) 359Net result of joint ventures and associates (Note 38) (208,625) (159,888)Impairment of goodwill - -Impairment losses in the investments under development 7,285 -Other permanent differences and tax losses for which the recoverability is not p 12,067 (1,198)

Taxable profit 104,615 133,094

Effect of different income tax rates in other countries 18,677 31,386123,292 164,480

Income tax rate in Portugal 21.0% 21.0%25,891 34,541

Tax rate change effect (Note 23) - (815)

25,891 33,726

Current Non-current Current Non-current

Trade payables 7,958 - 9,603 -Fixed assets suppliers 1,730 72 585 64

9,688 72 10,188 64

31.12.16 31.12.15 (Restated)


2016, the Board of Directors believes that the carrying amount of these accounts payable is similar to its corresponding fair value. The amounts reported above have the following periods for payment:

26 STATE AND OTHER PUBLIC ENTITIES

At 31 December 2016 and 2015 state and other public entities were made up as follows:

According to the current tax legislation, the tax returns of Portuguese companies includ-ed in the consolidation are subject to revision and correction by the fiscal authorities within a period of four years; the exceptions are when fiscal losses have occurred, fiscal incentives have been granted or auditing or claims are in course, in which case, depend-ing on circumstances, the final dates can be extended or suspended. So, the tax returns of the Portuguese companies of the years 2013 until 2016 are still subject to review and possible adjustment. The Board of Directors believes that any possible adjustments that may be made by the tax authorities as a result of their reviews will not have a significant effect on the finan-cial statements as of 31 December 2016. The amounts of kEuro 1,657 and kEuro 1,158 as of 31 December 2016 and 2015, re-spectively, receivable from public entities, relates basically to Value Added Tax (“VAT”) receivable. In accordance to tax legislation, the Group follows the procedure of recording under this caption the VAT included in the invoices from third parties during the period of construction of the shopping centres and requests the reimbursement of that VAT only after the beginning of their respective operation. As of 31 December 2016, the Board of Directors believes that the carrying amount of these accounts receivable and payable is similar to its fair value. As of 31 December 2016 and 2015, there are no overdue debts to state and other public entities.

31.12.1631.12.15

(Restated)Current:

0-90 days 9,006 9,76290-180 days 206 126+ 180 days 476 300

9,688 10,188

Non-current:n+1 72 64

72 64

Current Current Current Current

Income tax 3,968 2,508 3,283 2,804VAT 1,657 4,125 1,158 3,524Social security contributions 175 738 95 767Other taxes 645 203 660 31

6,445 7,574 5,196 7,126

31.12.15 (Restated)LiabilityAsset LiabilityAsset

31.12.16


27 OTHER PAYABLES

At 31 December 2016 and 2015 other payables were made up as follows:

During 2016 were paid, to shareholders, dividends in the amount of kEuro 24.386. In additional was decided to distribute free reserves in the amount of mEuro 24.711, which were paid on 20 June 2016. The amount of kEuro 3,291 of gift cards relates to deposits received until 31 December 2016 on the sale of those gift cards, net of gift cards expired or settled until that date. The Group recognises in an account payable all gift cards sold, being this account settled when the gift cards are compensated by the tenants (in this case the fee charged is rec-ognised on the statement of profit or loss) or when the gift cards expire (in this case the income corresponds to the amount of the expired gift cards). As of 31 December 2016 and 2015, this caption relates to amounts payable resulting from acquisitions made in the normal course of the Group’s activities. As of 31 December 2016, the Board of Directors believes that the carrying amounts of these accounts paya-ble is similar to its fair value. The above balance for other creditors shows an average payment period below 90 days.

28 OTHER CURRENT LIABILITIES

At 31 December 2016 and 2015 other current liabilities were made up as follows:

The accrual for vacations and vacations bonus and other bonus as of 31 December 2016 and 2015, includes the amounts of kEuro 2,130 and kEuro 2,241, respectively, related to the remuneration bonus attributed to some employees of the Group, which will be paid in the future, as long as the employees involved are still employees of the Group as of the payment date. These remuneration bonus will be adjusted, in each of the following peri-

31.12.1631.12.15

(Restated)Dividends - 24,386Gift cards 3,291 3,857Advances from customers 2,775 2,023Rent deposits from tenants (Note 13 e 17) 1,297 354Guimarães City Council 250 250Other payables 1,498 1,959

9,111 32,829

31.12.1631.12.15

(Restated)

Accrued services payable 18,984 18,416Accrual for vacations and vacations bonus and other bonus 12,039 12,880Accrued fixed assets payable 11,163 10,812Accrued interest expense 3,273 4,476Deferred rental income 3,269 3,113Condominium margin 4,866 3,458Accrued property tax 441 413Accrued other taxes 320 284Key money invoiced in advance 757 607Others 1,323 2,850

56,435 57,309


ods, until the corresponding payment date, by the annual variation of the Net Asset Val-ue (NAV) of the Group and for the remuneration bonus attributed after 2011, inclusive, will be also adjusted according to the direct result of the Group and the possible sales of assets during the deferred period. These remuneration bonus are expensed linearly over the deferred period and recorded as expense, on the basis of the gross amount that was attributed to those employees, and any subsequent adjustment, derived from the varia-tion of the Group’s NAV or other, recorded in the statements of profit or loss of the year in which the variation occurs. As of 31 December 2016 and 2015, the amounts of kEuro 11,163 and kEuro 10,812, re-spectively, relate to the estimate, made by the Board of Directors for liabilities associated with the investments made in the investment properties, for which the corresponding invoices have not yet been received.

29 VARIATIONS ON PROVISIONS AND IMPAIRMENT LOSSES

The movement in provisions and impairment losses during the years ended 31 December 2016 and 2015 is made up as follows:

Impairment losses on accounts receivable are deducted from the amount of the corre-sponding asset.

Balance as of Balance as of31.12.2015 Increase Utilization 31.12.2016

Impairment losses on accounts receivable:Trade receivables (Note 14) 16,255 1,294 (2,082) 15,467Other receivables (Note 15) 1,587 24 (3) 1,608

17,842 1,318 (2,085) 17,075Provisions for risks and expenses:

Other risks and expenses 1,885 949 (1,221) 1,61319,727 2,267 (3,306) 18,688

2016

Balance as of Balance as of31.12.2014 Increase Utilization 31.12.2015

Impairment losses on accounts receivable:Trade receivables (Note 14) 18,953 1,995 (4,263) 16,255Other receivables (Note 15) 1,587 - - 1,587

20,540 1,995 (4,263) 17,842Provisions for risks and expenses:

Other risks and expenses 270 1,721 (106) 1,88520,810 3,716 (4,369) 19,727

2015 (Restated)


30 SERVICES RENDERED

Services rendered for the years ended 31 December 2016 and 2015 are made up as fol-lows:

The caption “Fixed rents” is net of the discounts (contractual and extra-contractual) granted to the tenants in the amount of kEuro 5,773 and kEuro 9,935, respectively for 2016 and 2015. The decrease verified during the year ended 31 December 2016 results from the sale of Algarveshopping, Estação Viana and Luz del Tajo properties.

31 VARIATION IN FAIR VALUE OF INVESTMENT PROPERTIES

The variation in fair value of the investment properties in 2016 and 2015 is made up as follows:

32 OTHER OPERATING REVENUE

Other operating revenue for the years ended 31 December 2016 and 2015 is made up as follows:

2016 2015Services rendered:

Fixed rents 48,995 65,473Turnover rents 1,812 2,202Mall income 3,634 4,141Common charges 67,404 62,120Service fees 55,504 49,739Parking income 1,314 2,170Other 797 6,050

179,460 191,895

2016 2015Variation in fair value between years (Note 9):

- Gains 69,289 96,253- Losses (4,348) -

Variation in fair value on "fit-out" contracts (Note 9) 402 9665,343 96,349

31.12.2016 31.12.2015

Co-generation 114 102Development costs 616 4,754Reversal of impairment losses 1,338 3,965Reversal of provisions 444 1,087Gain on sale of assets:

- Plot of land in Parque de Famalicão 173 - - Other 1 -

Other 996 1,2723,682 11,180


33 IMPAIRMENT LOSSES AND WRITE-OFF

The impairment losses and write-offs for the years ended 31 December 2016 and 2015 are the following:

The “Write-off and Impairment losses in the investment properties under development” relate to the provision made to anticipate losses due to the delays on the development of some of the pipeline due to market uncertainty.

34 OTHER OPERATING EXPENSES

Other operating expenses for the years ended 31 December 2016 and 2015 are made up as follows:

35 NET FINANCIAL RESULTS

Net financial results are made up as follows:

2016 2015Write-off and Impairment losses in the investment properties under development (Note 9) 7,285 -

7,285 -

31.12.2016 31.12.2015Property tax 1,453 2,120Other 560 1,496

2,013 3,616

2016 2015Expenses:

Interest expense 13,350 19,907Stamp duty related to financing 248 253Foreign currency exchange losses (11) (6)Loss on fair value of ineffective hedging derivatives 1,115 252Other 2,476 1,994

17,178 22,400Net financial expenses (10,922) (15,939)

6,256 6,461Income:

Interest income 5,380 5,904Foreign currency exchange gains 60 94Other 816 463

6,256 6,461


36 GAINS AND LOSSES ON INVESTMENTS

Gains and losses on investments are made up as follows:

37 SHARE OF PROFIT OF JOINT VENTURES AND ASSOCIATES Share of profit of joint ventures and associates during the years ended 31 December 2016 and 2015, is detailed as follows:

38 OPERATING LEASES

In the operating leases where the Group is the lessor, the minimal lease payments (fixed rents) recorded during the years ended 31 December 2016 and 2015 amounted to kEuro 60,273 and kEuro 65,473 respectively (Note 30). In addition, as of 31 December 2016 and 2015, the Group had, as lessor, operating lease contracts for which the minimal lease payments (fixed rent) are due as follows:

In the Operational Leases where the Group is the lessee, the minimum lease payments recognised as expense during the years ended 31 December 2016 and 2015 reached the amounts of kEuro 2,325 and kEuro 2,256 respectively.

Price adjustment of Le Terrazze - 67Loss on sale of Zubiarte - (526)Price adjustment of Zubiarte (54) -Gain on sale of Citic - 81Gain on sale of Algarve (Note 7) 23,262 -Gain on sale of Estação Viana (Note 7) 5,330 -Gain on sale of Luz del Tajo (Note 7) 8,572 -Loss on sale of Loop5 (Note 5) (295) -Loss on sale of SPF (842) -Loss on sale of Project Guia (Note 7) (63) -Price adjustment of Valecenter (199) -Other - 19

35,711 (359)

2016 2015

Share of profit of joint ventures (Note 5) 195,826 146,155Share of profit of associates (Note 6) 12,799 13,733

208,625 159,888

2016 2015

31.12.16 31.12.15Due in N+1 51,024 66,106Due in N+2 47,561 58,718Due in N+3 41,457 53,555Due in N+4 36,289 43,449Due in N+5 27,638 34,986Due after N+5 73,828 96,124Contracts automatically renewed 764 1,362

278,561 354,300


In addition, as of 31 December 2016 and 2015, the Group had, as lessee, operating lease contracts for which the minimum lease payments are due as follows:

39 RELATED PARTIES

Balances and transactions that existed with related parties, during the years ended 31 December 2016 and 2015, in addition to the loans obtained from and payable to the shareholders mentioned in Note 21, are detailed as follows:

31.12.16 31.12.15Due in N+1 2,222 1,892Due in N+2 1,497 1,171Due in N+3 1,192 992Due in N+4 943 784Due in N+5 771 624Due after N+5 381 926

7,006 6,389

31.12.16 31.12.15 31.12.16 31.12.15 31.12.16 31.12.15

BB Food Service, S.A. (60) - - - 3 8Contimobe - Imobil. Castelo Paiva, S.A. 1,302 245 13 - (358) (166)Digitmarket - Sistemas de Informação, S.A. 1 27 1 10 (147) (126)Edificios Saudáveis Consultores, S.A. - - - 26 - 161Estêvão Neves - Hipermercados Madeira, S.A - 5 - - - 12Viajens y Turismo de Geotur España, S.L. - 33 6 39 8 23Infofield - Informática, S.A. - 12 - - 20 20Integrum Colombo Energia, S.A. 46 110 - - (26) (31)MDS - Corretor de Seguros, S.A. 3 - 105 3 (9) (9)Modalfa - Comércio e Serviços, S.A. 7 7 - - 17 -Modalloop - Vestuário e Calçado, S.A. - - - 27 13 13NOS Sistemas S.A. - - - 1 - 234Modelo - Dist.e materiais de Construção, S.A. - 103 235 - 22 373Modelo Continente Hipermercados, S.A. 810 2 51 90 676 617NOS Comunicações, S.A. - 113 - 35 - 376Pharmacontinente - Saúde e Higiene, S.A. 48 36 - - 8 (6)Predicomercial - Promoção Imobiliária, S.A. - 173 - - (6) (7)Raso- Viagens e Turismo, S.A - 3 23 35 (1) 38Salsa Consolidado - - - - 114 -Sistavac, S.A. - - 3 2 16 1Solinca - Health & Fitness, S.A. 8 16 - - 43 44Sonae Center Serviços II, S.A. - - - - 21 84SDSR - Sports Division SR, S.A. 31 - 10 - 219 -Torre Ocidente Imobiliária, S.A. 61 6 - - 394 (99)Troiaresort-Investimentos Turísticos, S.A. 14 36 - - 6 -UPK-Gestão de Facilities e Manutenção,SA - - - 30 - -Valecenter Srl - 241 - - - -We Do Consulting-Sist. de Informação, S.A. - - 4 7 3 103We Do Technologies BV 3 8 - - - -Worten – Equipamentos para o Lar, S.A. 52 32 50 3 170 217Worten España Distribución, SL 125 - 30 30 - -Zippy - Comércio e Distribuição, S.A. 16 6 - - 84 104Joint ventures and associate companies of Sonae Sierra 14,270 8,305 7,842 3,447 (2,925) (3,921)Sonae SGPS, S.A. - - 205 12,398 220 20Grosvenor Investments, (Portugal), Sarl - - - 12,193 - -Sierra Investments (Luxembourg) 1 Sarl ("Luxco 1") - - - - 20 (29)Sierra Investments (Luxembourg) 2 Sarl ("Luxco 2") - - - - 15 (23)

16,737 9,519 8,578 28,376 (1,380) (1,969)

BalancesAccounts receivable Accounts payable Other liabilities


The remuneration of the Board of Directors, during the years ended 31 December 2016 and 2015, was as follows:

The total fees invoiced by the statutory auditor, amounted to kEuro 691, which include the amount of kEuro 383 relating to review of accounts and the amounts of kEuro 102, kEuro 198 and kEuro 8, relating to reliability assurance services, tax consulting and other services, respectively.

NOS Technology-C.C. e Gest.Redes Com.,SA - 16 - - - - - -BB Food Service, S.A. 71 106 - - - - - -Contimobe - Imobil. Castelo Paiva, S.A. 31 31 (144) (114) - - - -Digitmarket - Sistemas de Informação, S.A. - - 298 291 - - - -Edificios Saudáveis Consultores, S.A. - - - 58 - - - -Viajens y Turismo de Geotur España, S.L. - - 230 192 - - - -Imoconti - Sociedade Imobiliária, S.A. - - - (112) - - - -Infofield - Informática, S.A. 246 449 - (9) - - - -ITRUST - Cyber Security and Intellig.,SA - - 28 - - - - -Integrum Colombo Energia, S.A. - - (618) (601) - - - -La Farga - Shopping Centre, SL - 43 - (3) - - - -Le Terrazze - Shopping Centre, Srl - - - 5 - - - -MDS - Corretor de Seguros, S.A. - - 47 28 - - - -Modalfa - Comércio e Serviços, S.A. 249 269 - - - - - -Modalloop - Vestuário e Calçado, S.A. 163 240 - - - - - -NOS Sistemas S.A. - - - 2,434 - - - -Modelo - Dist.e materiais de Construção, S.A. 692 532 - 5 - - - -Modelo Continente Hipermercados, S.A. 8,088 8,217 260 302 - - - -NOS Comunicações, S.A. - 1,162 - 1,172 - - - -Pharmacontinente - Saúde e Higiene, S.A. 479 485 (1) - - - - -Predicomercial - Promoção Imobiliária,SA - - 1 (37) - - - -Público - Comunicação Social, SA 20 19 - - - - - -Raso- Viagens e Turismo, S.A 267 249 838 917 - - - -Salsa Consolidado 843 - - - - - - -Saphety Level - Trusted Services, SA - - 150 23 - - - -Sesagest - Proj.Gestão Imobiliária, S.A. - - (2) 15 - - - -Sonae Ind., Prod. e Com.Deriv.Madeira,SA - 3 23 90 - - - -SIRS - Soc.Ind.de Radiodifusão Sonora,SA - - - 27 - - - -Sistavac, S.A. - - - 54 - - - -NOS Towering-Gestão de Torres Telec., SA - 197 - (10) - - - -Solinca - Health & Fitness, S.A. 1,122 1,052 (78) (78) - - - -Solinfitness - Club Malaga, S.L. - - - - 97 111 - -Sonae Center Serviços II, S.A. - - 382 438 - - - -Sonaecom BV (1) 7 - - - - - -Sonaerp - Retail Properties, SA - - (38) 13 - - - -SDSR - Sports Division SR, S.A. 4,456 5,084 (53) (51) - - - -Sistavac, S.A. - - 44 - - - - -Tlantic Portugal - Sist.de Informação,SA 2 - 20 21 - - - -Torre Ocidente Imobiliária, S.A. 35 61 717 482 - - - -Troiaresort-Investimentos Turísticos, S.A. 156 136 20 11 - - - -UPK-Gestão de Facilities e Manutenção,SA - - - 1,878 - - - -We Do Consulting-Sist. de Informação, S.A. - - 1,200 1,241 - - - -We Do Technologies BV 1 7 - - - - - -Worten – Equipamentos para o Lar, S.A. 2,870 3,920 (89) (98) - - - -Worten España Distribución, SL 159 309 - - - - - -Zippy - Comércio e Distribuição, S.A. 1,220 1,225 (15) (9) - - - -Joint ventures and associate companies of Sonae Sierra 39,148 37,006 4,757 3,079 3,062 3,244 153 137Sonae SGPS, S.A. - - 218 230 - - - -Sierra Investments (Luxembourg) 1 Sarl ("Luxco 1") - - (3) (1) - - 22 27Sierra Investments (Luxembourg) 2 Sarl ("Luxco 2") - - (3) (1) - - 18 22

60,317 60,825 8,189 11,882 3,159 3,355 193 186

2016 2016 2016 2016

TransactionsSales and services

renderedPurchases and services

obtained Interest income Interest expense

2015 2015 2015 2015

2016 2015Fixed remuneration 1,661 1,527Variable remuneration 1,054 1,108

2,715 2,635


40 CONTINGENT LIABILITIES AND BANK GUARANTEES

As of 31 December 2016 and 2015, the main contingent liabilities relate to the following situations:

In 2014 the Group has agreed to pay up to the amount of kEuro 4,000 in case of breach of the obligations undertaken under the pre-sales and purchase agreement between Parklake Shopping SA and Carrefour Romania SA.

In 2015 the Group has agreed with the bank that granted the loan to Parklake Shop-ping SA for the construction of the shopping centre Parklake the payment of the debt service in the maximum amount kEuro 9,250, in case the company is not able to comply with its obligations.

In December 2013 Gli Orsi received a tax notification, whereby it is asked to pay the amount of kEuro 19,463, related with real estate transfer tax in the amount of kEuro 9,485 and kEuro 9,978 related with penalties and interest, plus court agent fees amounting to kEuro 905. Based on the opinion of the tax expert there are valid reasons to consider the claim without foundation, and so the Group has appealed to the Supreme Court. In the specific case of the penalties requested by the tax authori-ties, the tax expert understands that no penalty is due. To provide for this contingen-cy, the Group has expensed in 2013 an amount of keuro 10,390 (corresponding to real estate transfer tax (kEuro 9,485) plus count agent fee (kEuro 905). In 2016, the Group assumed the commitment to the bank ING Bank N. V. (Milan), that finance the company Gli Orsi Shopping Centre 1, Srl, to pay future tax liabilities which may arise in relation to these tax litigations up to the maximum amount of kEuro 25.000, in case the company is not able to settle it.

During 2008 – 2015, Sonae Sierra has received tax notifications regarding the tax deductibility of interest expenses on loans obtained, concerning the years 2005, 2007, 2008, 2009, 2010 and 2011, in the total amount of kEuro 11,944. All these tax notifications were claimed by Sonae Sierra and guarantees in the same amount were granted by the subsidiary Sierra Investments, SGPS, S.A. to the Portuguese tax ad-ministration. No provision was recorded because the Board of Directors understands that the risk of these tax contingencies is unlikely. The fact that Sonae Sierra re-ceived on 20 January 2015 a second favourable court decision regarding the deducti-bility of interest incurred in 2004 corroborates the Group’s assessment of these con-tingencies.

In 2012 the joint venture entity Freccia Rossa received a tax notification amounting to kEuro 857 regarding interest expenses of 2008 that would not be deductible for tax purposes. During 2014 this joint venture received a tax notification amounting kEuro 656, regarding the same matters but related to the year of 2009. As the company has accounts receivable of VAT (VAT regarding the invoices during the construction phase of the shopping centre), the tax authorities retained the reimbursement of the VAT until the final outcome of the tax notification. Freccia Rossa has presented a rec-lamation against these tax notifications. However, in relation to the year of 2009 the company paid an amount of kEuro 219 (1/3 of the tax notification), as requested by law in order to be able to present the referred reclamation, which was recorded against an account receivable. According to the tax expert engaged to assist in this process, there are valid and sound arguments to sustain the company’s position and also to consider it improbable that the company fails the litigation and so no allow-ance was considered by the Group.


At 31 December 2016 and 2015 the bank guarantees granted to third parties were as following:

No provision has been made for any liability arising from the tax and legal processes mentioned above, as the Board of Directors believes that the corresponding risk is not probable.

41 COMMITMENTS NOT REFLECTED ON THE FINANCIAL STATEMENTS

Following the sale of 49.9% of Sierra European Retail Real Estate Assets Holdings BV’s (“Sierra BV”) share capital to a group of Investors, in 2003, Sonae Sierra has agreed to revise the sale price of such shares in the event of a sale, to third parties, of some of the shopping centres owned by subsidiaries of Sierra BV (subject to some conditions). The price revision can occur both with a sale of the asset (investment property in the case) or with a sale of the shares of the company that is, directly or indirectly, the owner of such asset. The price revision will be made by Sonae Sierra to the Investors in Sierra Fund or to Si-erra BV if, in a relevant sale, discounts related to deferred taxes on capital gains have been made. The price revision will be dependent on the percentage ownership in the company that owns the asset, the Investors’ ownership percentage in Sierra BV (and in case of a sale of shares adjusted by a 50% discount) and is limited to:

(i) in the case of the asset sale, a maximum amount of kEuro 118,258; (ii) in the case of a sale of shares of the company that directly or indirectly owns the asset, a maximum amount of kEuro 59,129; (iii) in the case of a sale of shares of the company that directly or indirectly owns the asset, the price revision plus the selling price, cannot result in a revised price that is greater than the proportion of the Net Asset Value.

Similar commitments were granted by Sonae Sierra in relation to the companies trans-ferred to Sierra BV after 2003 and to CBRE companies regarding the sale of 50% of Vas-co da Gama. These commitments are valid while the current agreements with the other stockholders of Sierra BV are maintained. Furthermore, Sonae Sierra has the right to make a proposal for the acquisition of the asset or the shares at stake before they are offered for sale to a third party. In accordance with the agreements made between the shareholders of Sierra BV at the time of its incorporation in 2003, it was agreed that Sierra BV should exist for an initial period of 10 years (that ends in October 2013), that could be extended by two additional

31.12.16 31.12.15Bank guarantees:

relating to tax processes in course 2,775 2,513relating to legal processes in course 74 74to complete the construction of several projects 1,180 765to secure the reimbursement of the instalment of the preliminary sale and purchase agreement with Carrefour Romania 15,978 2,108Others 409 1,477

20,416 6,937


periods of one year starting in 2013. On September 2013 all the shareholders of Sierra BV approved an amendment agreement relating to the continuation of the operations of the Fund with a long-stop date until October 2018. The Group continues to study several alternatives to dispose of the properties held by Sierra BV, but there are no intentions to proceed with forced asset sales. In accordance with the agreements made between the shareholders of SPF at the time of its incorporation in 2008, it was agreed that SPF should exist for a period of 10 years (that will end in 2018), with the non-Sonae Sierra shareholders having the option to re-deem its shares after 2014, provided that some conditions are met. The Group is not aware of any intention by any of those shareholders to redeem its shares. Additionally, in 2015 shareholders agreed to extend the fund until 2020. The Group believes that the direct sale of the asset is a less attractive solution as it is subject to certain liabilities that are not crystalized in the event of a sale of the shares.

42 DIVIDENDS

Regarding the net profit of 2016, the Board of Directors proposes to transfer the amount to retained earnings. The Board of Directors also proposes the distribution of free reserves in the amount of kEuro 74,782. The respective payment should be deferred to a date to be defined by the shareholders and after the recommendation of the Board of Directors.

43 EARNINGS PER SHARE

As of 31 December 2016 and 2015, basic earnings per share correspond to the net profit divided by the weighted average number of ordinary shares of Sonae Sierra during the year, and was computed as follows:

Sonae Sierra has no potential diluted shares and, for that reason, the diluted earnings per share is similar to the basic earnings per share.

44 SEGMENT INFORMATION

In accordance to the Management Report, the segments used by the Management of the Group are as follows:

Investment Management Developments Services Sonae Sierra Brazil

2,016 2015

Profit considered to compute the basic earnings per share(net profit of the year) 181,197 141,746

Number of shares 32,514,000 32,514,000

Earning per share (Euro) 5.57 4.36


The Sonae Sierra’s reportable segment information for the years ended 31 December 2016 and 2015, regarding the statement of profit or loss, can be detailed as follows:

31.12.16 31.12.15Net Operating Result

Investment Management 74,533 84,112Developments 19,307 (5,056)Services 11,852 6,100Sonae Sierra Brazil 18,643 19,572Reclassifications and adjustments (27,808) 371

Consolidated (1) 96,527 105,099

Net financial costsInvestment Management 19,816 24,160Developments 1,922 1,150Services (830) (425)Sonae Sierra Brazil 5,194 6,166Reclassifications and adjustments - (35)

Consolidated 26,102 31,016

Direct profit before taxesInvestment Management 54,717 59,952Developments 17,385 (6,206)Services 12,682 6,526Sonae Sierra Brazil 13,449 13,408Reclassifications and adjustments (27,806) 486


Indirect income before taxesInvestment Management 136,594 104,911Developments (8,142) -Sonae Sierra Brazil 12,040 9,241Reclassifications and adjustments 27,807 (407)


Corporate tax + Deferred taxInvestment Management (43,626) (37,999)Developments (3,070) 1,725Services (3,140) (1,754)Sonae Sierra Brazil (7,693) (8,137)

Consolidated (1) (57,529) (46,165)

Net profitInvestment Management 147,685 126,864Developments 6,173 (4,481)Services 9,542 4,772Sonae Sierra Brazil 17,797 14,512Reclassifications and adjustments - 79



The amounts under the caption “Reclassifications and adjustments” can be analysed as follows:

The Sonae Sierra’s reportable segment information for the year ended 31 December 2016 and 2015, regarding the statement of financial position, can be analysed as follows:

31.12.16 31.12.15 31.12.16 31.12.15 31.12.16 31.12.15 31.12.16 31.12.15 31.12.16 31.12.15Reclassification of the value created in projects in Sierra Developments (1) (27,806) 407 - - (27,806) 407 27,806 (407) - -Others (2) (36) - (35) - 79 1 - 1 79

Reclassifications and adjustments (27,808) 371 - (35) (27,806) 486 27,807 (407) 1 79

(1)

Net Operating Result Direct profit before taxes

Indirect income before taxes

Net profit

The business Developments recognises in the Net Operating Result the value created in the assets though sale or impairment analysis; in the consolidated accounts these amounts are recognised under the caption "Indirect income before taxes".

Net financial costs

31.12.1631.12.15

(Restated)

Investment propertiesInvestment Management 1,613,792 1,680,808Sonae Sierra Brazil 426,372 331,237Investment Properties under development and others (Sierra Investments and Brazil) (7,137) (4,531)

Consolidated (1) 2,033,027 2,007,514

Bank loansInvestment Management 594,079 729,116Developments 4,665 22,575Sonae Sierra Brazil 62,350 57,854Bank loan at Sonae Sierra SGPS 120,000 95,000Others 148 -

Consolidated (1) 781,242 904,545

Deferred taxes liabilitiesInvestment Management 242,678 232,027Developments 287 268Sonae Sierra Brazil 74,738 55,279Others (2,078) (1,443)


(1) The reconciliation with the statutory accounts is presented on the following tables.


The reportable segment information can be reconciled with the enclosed financial state-ments as follows: Statement of profit or loss

Statement of financial position

Net Operating Margin - segments 96,527 105,099Equity method adjustment (1) (68,055) (73,274)Proportional method adjustment (2) 4,725 20,258Indirect Income:

Variation in fair value of the investment properties 65,343 32,138Gains realized on sale of investments - 4,489Other indirect income / costs 4,777 178

Depreciations, write-off and impairments losses (7,285) (21,418)Withholding taxes related to Interests and dividends (7) -Negative goodwill recognised in "Share of results of associated undertakings" 274 -Others (114) 82,761

96,185 150,231

Corporate tax + Deferred Tax - segments (57,529) (46,165)Equity method adjustment (1) 40,761 26,879Proportional method adjustment (2) (7,632) (3,250)Others - (11,190)

Income tax as per Financial Statements (24,400) (33,726)

(1)

(2)

31.12.16

The companies owned by the group by less than 100% and more that 50% are included in the management accounts by the proportionate method and in the statutory consolidated accounts are included by the full consolidation method.

Net Profit before interest and results from associated undertakings, as per Financial Statements

Joint ventures and associates are included in the statutory consolidated accounts by the equity method and in the management accounts by the proportionate method.

31.12.15

Investment properties - segments 2,033,027 2,007,514Equity method adjustment (1) (1,488,913) (1,428,030)Proportional method adjustment (2) 232,706 405,465Goodwill (3) (12,433) (17,525)Assets held for sale (Note 8) - (273,500)

764,387 693,924

Bank loans - segments 781,242 904,545Equity method adjustment (1) (444,094) (551,080)Proportional method adjustment (2) 86,096 159,730Financing costs (3,094) (1,777)Short term facilities (4) - 53,843Assets held for sale - (96,339)

420,150 468,922

(1)

(2)

(3)(4)

31.12.1631.12.15

(Restated)

Investment properties as per Financial Statements

Debt - current and non-current as per Financial Statements

Joint ventures and associates are included in the statutory consolidated accounts by the equity method and in the management accounts by the proportionate method.The companies owned by the group by less than 100% and more that 50% are included in the management accounts by the proportionate method and in the statutory consolidated accounts are included by the full consolidation method.The Investment Management segment consider the Goowdill under the caption "Investment Properties".The management accounts have the short term facilities recorded under the caption "Cash & Equivalents".


The average number of employees in 2016 and 2015, by business segment is detailed as follows:

45 SUBSEQUENT EVENTS

On 9 February 2017 the Group, through its associate Iberia Coop, acquired 100% of the share capital of Albufeira Retail Park Lda.

46 APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Board of Directors and authorised for issuance on 8 March 2017. However, these financial statements are still depending on the approval by the Shareholders General Meeting, in accordance with business legislation prevailing in Portugal.

47 NOTE ADDED FOR TRANSLATION

This is a translation of financial statements originally issued in Portuguese in accordance with Portuguese Statutory requirements, some of which may not conform to or be re-quired in other countries. In the event of discrepancies, the Portuguese language version prevails. The Board of Directors

2016 2015Investment Management 20 21Developments 19 24Services 450 454Non allocated 237 189

725 687

31 December 31 DecemberASSETS Notes 2016 2015

NON CURRENT ASSETS:Investments in group companies and associated companies 3 1,148,979 1,148,979Suplementary capital granted 4 49,434 100,434

Total non current assets 1,198,413 1,249,413

CURRENT ASSETS:Loans to Group companies 5 14,038 28,344Other receivables 6 5,212 4,889State and other public entities 7 822 822Other current assets 8 661 1,040Cash and Cash Equivalents 9 508 236

Total current assets 21,241 35,331

Total assets 1,219,654 1,284,744

EQUITY:Share capital 10 162,245 162,245Legal Reserve 57,329 57,329Other reserves 292,554 317,264Retained earnings 529,469 534,056Net Profit for the period (5,462) (4,587)

Total Equity 1,036,135 1,066,307

LIABILITIES:NON CURRENT LIABILITIES:Long term debt - net of current portion 12 19,947 19,896Bond Loans - net of current portion 11 74,908 74,735Derivative financial instruments 13 - 1,333

Total non current liabilities 94,855 95,964

CURRENT LIABILITIES:Bank Loans short term 12 24,949 53,794Current portion of bond loans 11 (173) (160)Loans from Group companies 14 59,535 39,119Shareholders 15 - 24,386Other Payables 16 273 99State and other public entities 7 76 260Other current liabilities 17 4,004 4,975

Total current liabilities 88,664 122,473

Total equity and liabilities 1,219,654 1,284,744

The accompanying notes form an integral part of these statements of financial position as of 31 December 2016.

EQUITY AND LIABILITIES

SONAE SIERRA, S.G.P.S., S.A.

STATEMENTS OF FINANCIAL POSITION

AS OF 31 DECEMBER 2016 AND 2015

(Translation of the statement of financial position originally issued in Portuguese - Note 27)



STATEMENTS OF PROFIT AND LOSS

FOR THE YEARS ENDED 31 DECEMBER 2016 AND 2015


Notes 2016 2015

Other operating revenue 18 33 1233 12

External supplies and services (239) (247)Personnel expenses - (642)Other operating expenses 19 (28) (24)

(267) (913)

Net operating profit (234) (901)

Financial income 20 1,002 875Financial expenses 20 (9,425) (9,208)Gains and losses on investments 20 2,078 3,578

Profit before income tax (6,579) (5,656)

Income tax 21 1,117 1,069

Profit after income tax (5,462) (4,587)

Net profit for the period (5,462) (4,587)

(Translation of statement of profit and loss originally issued in Portuguese - Note 27)

The accompanying notes form an integral part of these statement of profit and loss for the year ended 31 December 2016.


STATEMENTS OF COMPREHENSIVE INCOME



Notes 2016 2015

Net profit for the period (5,462) (4,587)

Others - -Other comprehensive income of the period - -

Total comprehensive income for the period (5,462) (4,587)

The accompanying notes form an integral part of these statements of compehensice income for the year ended 31 December 2016.

(Translation of the statement of comprehensive income originally issued in Portuguese - Note 27)

Share Legal Other Retained Net

Notes capital reserve reserves earnings profit Total

Balance as of 31 December 2015 162,245 57,329 341,650 421,424 112,632 1,095,280

Appropriation of net profit for 2014:

Dividends to distribut - - (24,386) - - (24,386)

Appropriation of net profit for 2014 - - - 112,632 (112,632) -

Net loss for period ended 31 December 2015 - - - - (4,587) (4,587)

Balance as of 31 December 2015 162,245 57,329 317,264 534,056 (4,587) 1,066,307

Balance as of 1 January 2016 10 162,245 57,329 317,265 534,056 (4,587) 1,066,307

Appropriation of net profit for 2015:

Appropriation of net profit for 2015 10 - - - (4,587) 4,587 -Dividends to distribute - - (24,711) - (24,711)

Net loss for period ended 31 December 2016 - - - - (5,462) (5,462)

Balance as of 31 December 2016 162,245 57,329 292,554 529,469 (5,462) 1,036,135

Attributable to Equity Holders of Sonae Sierra

SONAE SIERRA S.G.P.S., S.A.

STATEMENTS OF CHANGES IN EQUITY



(Translation of statements of changes in equity originally issued in Portuguese - Note 27)

The accompanying notes form an integral part of these statement of changes in equity for the year ended 31 December 2016.

Reserves

Notes

OPERATING ACTIVITIES:

Paid to suppliers (270) (259)Paid to personnel (301) (683)

Flows from operations (571) (942)

(Payments)/receipts of income tax 1,031 6Other (payments)/receipts relating to operating activities (249) (325)

Flows from operating activities [1] 212 (1,261)

INVESTING ACTIVITIES:


Investments 51,000 -Interest income 1,416 269Dividends 20 2,078 3,578Loans granted 5 14,306 68,800 - 3,847


Loans granted - (28,344) (28,344)

Flows from investing activities [2] 68,800 (24,497)

FINANCING ACTIVITIES:


Bank loans - 53,844Loans obtained - others 20,416 20,416 - 53,844


Interest expenses (11,216) (11,019)Dividends 15 (49,096) -Bank loans 12 (28,844) -Loans obtained - others - (89,156) (17,972) (28,991)

Flows from financing activities [3] (68,740) 24,853

Variation in cash and cash equivalents [4]=[1]+[2]+[3] 272 (905)

Cash and cash equivalents at the beginning of the year 9 236 1,141

Cash and cash equivalents at the end of the year 9 508 236

(Translation of statement of cash flow originally issued in Portuguese - Note 27)


SONAE SIERRA, SGPS, S.A.

STATEMENTS OF CASH FLOWS


The accompanying notes form an integral part of these statements of cash flows for the year ended 31 December 2016.

2016 2015

SONAE SIERRA SGPS ACCOUNTS 2016 1/21

SONAE SIERRA, SGPS, S.A.

Notes to the financial statements

as of 31 December 2016

(Translation of notes originally issued in Portuguese – Note 27)

(Amounts stated in thousands of Euro - kEuro)

1 INTRODUCTION

SONAE SIERRA, S.G.P.S., S.A. (“the Company” or “Sonae Sierra”), has its head office in Lugar do Espido, Via Norte, Apartado 1197, 4471-909 Maia – Portugal, and its activity is holding and finance, group of companies operating in the management, development and investment of shopping centres business. The financial statements are presented in Euro, the functional currency of the Company, as this is the currency of the primary economic environment in which the Company oper-ates. The Company has also prepared consolidated financial statements, which are separately presented and properly show the financial position, the results and comprehensive in-come of its operations, changes in equity and cash flows of the Sonae Sierra Group.

2 PRINCIPAL ACCOUNTING POLICIES

The principal accounting policies adopted in preparing the accompanying financial state-ments are as follows:

2.1. Basis of preparation

The accompanying financial statements have been prepared according to the Interna-tional Financial Report Standards (“IFRS”) and approved by the European Union, applica-ble to economic years beginning on 1 January 2016. These correspond to the Interna-tional Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Re-porting Interpretations Committee (“IFRIC”) or by the previous Standing Interpretations Committee (“SIC”) and approved by the European Union. The accompanying financial statements have been prepared on a going concern basis and in accordance with the accrual basis of accounting, maintained according to Interna-tional Financial Reporting Standards, as approved by the European Union.


New accounting standards and their impact in these financial statements Until the date of approval of these financial statements, the European Union endorsed the following standards, interpretations, amendments and revisions with mandatory ap-plication to the economic year beginning on 1 January 2016:



Annual improvements to IFRS (2010-2012 cycle) 01/feb/15Amendments to IAS 19 - Defined benefit plans: Employee contributions 01/feb/15Amendments to IAS 16 and IAS 41 - Bearer plants 01/jan/16Amendments to IFRS 11 - Accounting for acquisition of interests in joint operations 01/jan/16Amendments to IAS 16 and IAS 38 - Clarification of acceptable methods of depreciation and amortization 01/jan/16Annual improvements to IFRS (2012-2014 cycle) 01/jan/16Amendments to IAS 1 - Improvements in disclosures 01/jan/16Amendments to IAS 27 - Equity method in separate financial statements 01/jan/16Amendments to IFRS 10, IFRS 12 and IAS 28 - investment entities: applying the consolidation exception 01/jan/16

All these standards were first applied by the Company in 2016 and had no impact in the financial statements. The following standards and interpretations, with mandatory application in future finan-cial years, were, until the date of approval of these financial statements, endorsed by the European Union:



IFRS 9 - Financial instruments: amendements to IFRS9 and IFRS7 01/jan/18IFRS 15 - Revenue from contracts with customers 01/jan/18

Despite these standards were endorsed by the European Union, they were not yet adopt-ed by the Company in 2016 as its application is not yet mandatory. Anyway the Compa-ny does not anticipate any material effect derived from its adoption. The following standards and interpretations were issued by the IASB and they are not yet endorsed by the European Union:



IFRS 14 - Regulatory deferral accounts 01/jan/16IFRS 16 - Leases 01/jan/19Amendments to IAS 12: Recognition of deferred tax assets for unrealised losses 01/jan/17Amendments to IAS 7: Disclosure initiative 01/jan/17Clarifications to IFRS 15 Revenue from contracts with customers 01/jan/18Amendments to IFRS 2: Classification and measurement of share-based payment transactions 01/jan/18Amendments to IFRS 4: Applying IFRS 9 financial instruments with IFRS 4 insurance contracts 01/jan/18Annual improvements to IFRS (2014-2016 cycle) 01/jan/18IFRIC Interpretation 22 - Foreign currency transactions and advance consideration 01/jan/18Amendments to IAS 40: Transfers of investmenty property 01/jan/18

None of these standards were adopted by the Company as they were not yet endorsed by the European Union. Nevertheless, no significant impact is expected from their future adoption.


2.2. Financial Investments

Financial investments in subsidiaries are recorded at acquisition cost less impairment losses. Impairment is assessed by comparing the cost of the investments with the corre-sponding Net Asset Value of the subsidiary company.

2.3. Financial assets and liabilities

Assets and liabilities are recognised in the statement of financial position when the Com-pany becomes part of the corresponding contract. Financial assets are initially recorded at their acquisition value, which is the fair value, including transaction costs, except for financial assets measured at fair value through profit and loss, where the transaction costs are immediately recorded in the profit and loss statement. The Company derecognises financial assets when: (i) the contractual rights to cash flows expire; (ii) it transfers to another entity the significant risks and benefits associated with ownership of the property or; (iii) despite having retained some, but not substantially the significant risks and benefits, has transferred the control over them. The Company derecognises financial liabilities only when the corresponding obligation is settled, cancelled or expires. Financial assets are classified into the following categories: - Financial assets measured at fair value through profit and loss; - Financial assets held to maturity; - Loans and receivables; - Financial assets available for sale. Financial assets measured at fair value include mainly derivative financial instruments. The subsequent measurement of these financial assets are carried at fair value and rec-orded in the statement of changes in equity if they qualify for hedge accounting purposes (Note 2.4). If they do not qualify for hedge accounting purposes, the fair value of these financial assets is recorded in the statement of profit and loss. Financial assets held to maturity are financial assets with fixed maturity and for which the Company has the intention and ability to hold to that date. In the particular case of the Company, there are no financial assets classified in this category. Loans and receivables are generated during normal operations of the Company, for which there is no intention to negotiate. Classified in this category are the accounts receivable and other receivables, loans to third parties and bank deposits. The subsequent meas-urement of these financial assets is carried at amortised cost in accordance with the ef-fective interest method. Financial assets available for sale are financial assets that are not classified in any of the above mentioned categories. In this particular case, the Company should classify in this category financial investments which were not likely to be classified as subsidiaries, asso-ciates or jointly controlled entities. However, by the date of these financial statements, no financial assets are classified in this category.


Financial liabilities are classified into the following categories: - Financial liabilities measured at fair value through profit and loss; - Other financial liabilities. Financial liabilities measured at fair value include mainly derivative financial instruments. The subsequent measurement of these financial liabilities are carried at fair value and recorded in the statement of changes in equity if they qualify for hedge accounting pur-poses (Note 2.4). If they do not qualify for hedge accounting purposes, the fair value of these financial liabilities is recorded in the statement of profit and loss. Other financial liabilities correspond to other financial liabilities which are not classified in the former category. In this category are classified bank loans and other current liabili-ties, including shareholders and accounts payable and other payables. The subsequent measurement of these financial liabilities is carried at amortised cost, in accordance with the effective interest method.

a) Loans granted to Group companies

Loans granted to Group companies are recorded as assets at amortised cost which usual-ly do not differ from the nominal value. Financial income with interest received is recorded in the profit and loss statement on an accruals basis. The amounts due and not received at the statement of financial position date are recorded under the caption "Other current assets".

b) Trade and other receivables

Accounts receivable and other receivables are recorded at amortised cost less any even-tual impairment losses. Usually, the amortised cost of these financial assets does not usually differ from its nominal value.

c) Loans

Loans are stated as liabilities at amortised cost. Any expenses incurred in obtaining such financing, usually paid in advance on issue, namely the bank fees and stamp duty as well as interest expenses and similar expenses, are recognised using the effective interest method in the results of the year, over lifetime of such financing. These expenses incurred are deducted from the caption “Bank loans”. Financial expenses with interest expenses and similar expenses (namely stamp tax), are recorded in the statement of profit and loss on an accrual basis of accounting. The amounts due and not paid at the statement of financial position date are recorded under the caption “Other current liabilities”.

d) Trade and other payables

Accounts payable and other payables are stated at amortised cost. Usually, the amor-tised cost of these liabilities does not differ from its nominal value.


e) Cash and cash equivalents

The amounts under caption "Cash and cash equivalents" includes cash on hand, cash at banks on demand and other treasury applications which mature in less than three months that are subject to insignificant risk of change in value. These assets are measured at amortised cost. Usually, the amortised cost of these finan-cial assets does not differ from its nominal value. For purposes of the statement of cash flows, “Cash and cash equivalents” also include bank overdrafts, which are included in the statement of financial position under caption “Other loans”.

2.4. Provisions

Provisions are recognised when, and only when, the Company has an obligation (legal or implicit) resulting from a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed and adjusted at the reporting date in order to reflect the best estimate as of that date. Provisions for restructuring expenses are recognised by the Company when there is a formal and detailed restructuring plan and that such plan has been communicated to the involved parties.

2.5. Contingent assets and liabilities

Contingent liabilities are not recognized in the financial statements. They are disclosed in the notes (Note 24) unless the possibility of an outflow of resources affecting economic benefits is remote. A contingent asset is not recognized in the financial statements, but disclosed in the notes when an inflow of economic benefits is probable.

2.6. Income tax

Income tax represents the sum of the tax based on the taxable results of the Company and the deferred taxes. Current income tax is determined based on the taxable result of the Company (which are different from accounting results), in accordance with the tax rules in force where its head office is located. Deferred taxes are calculated using the financial position liability method, reflecting the net tax effects of temporary differences between the carrying amounts of assets and lia-bilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are not recognised when the corresponding temporary differences arise from goodwill or from the initial recognition of assets and liabilities other than in a business combination. Deferred tax assets and liabilities are calculated and evaluated annually at the tax rates expected to apply to the period when the asset is realized or the liability is settled, based


on tax rates (and tax laws) that have been enacted or substantially issued at the state-ment of financial position date. Deferred tax assets are recognised only when it is probable that sufficient taxable profits will be available against which the deferred tax assets can be utilised. At the statement of financial position date, a review is made of the deferred tax assets and they are re-duced whenever their future use is no longer probable. Deferred tax assets and liabilities are recorded in the statement of profit and loss, except if they relate to items directly recorded in equity captions. In these situations the corre-sponding deferred tax is also recorded under the same caption.

2.7. Statement of financial position classification

Assets and liabilities due in more than one year from the date of the statement of finan-cial position are classified as non-current assets and liabilities, respectively.

2.8. Revenue recognition and accrual basis

The dividends are recognised as gains in the year they are assigned by the shareholders. The income and expenses are recognised in the year to which they relate, regardless of the date of payment or receipt (accrual basis of accounting). The income and expenses for which actual amounts are not known are estimated. Under the captions "Other current assets" and "Other current liabilities” are recorded in-come and expenses attributable to the current year, which settlement or receipt will only occur in future years, as well as amounts paid and received that have occurred on the date of the statement of financial position, but which relate to future periods, and that will be charged to the profit and loss of the corresponding year.

2.9. Balances and transactions expressed in foreign currency

Transactions in currencies other than Euro are recorded at the exchange rates prevailing on the transaction date. At each reporting date, all monetary assets and liabilities expressed in foreign currencies are translated to Euro using the closing exchange rates as of that date. Exchange gains or losses, arising from differences between exchange rates effective at the date of transaction and those prevailing at the date of collection, payment or at the reporting date, are recorded as income or expenses in the statement of profit and loss.

2.10. Risk management policies

The Group’s activities expose it to a variety of financial risks: market risk (including cur-rency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. Risk management is carried out by a central treasury department of the Group Sonae Sierra, under policies approved by the Board of Directors. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk.


a) Foreign exchange risk

The activity of the Company is developed inside Portugal and consequently the majority of the company's transactions are maintained in the same currency of the country. The policy to cover this specific risk is to avoid if possible the contracting of services in for-eign currency.

b) Liquidity risk

The needs of treasury are managed by the financial department of Sonae Sierra which with an opportune and adequate form manages the surplus and deficits of liquidity of each company of the Group. The occasional needs of liquidity are covered by an ade-quate control of the accounts receivables and by the maintenance of adequate limits of credit settled by the Company with banking entities.

c) Interest rate risk

The Company’s income and operating cash-flows are influenced by changes in market interest rates, since its cash and cash equivalents and intragroup financing granted are dependent on the evolution of the interest rates in Euro which, historically, have little volatility. On long-term financing, and as a way to mitigate the changes in the long-term interest rates, the Company’s contracts, in some cases, hedge instruments (“swaps”, “zero cost collars” or “caps”). Interest rate sensitivity analysis: The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and non-derivative instruments in place during the reporting period. For floating rate assets and liabilities, the analysis is prepared based on the fol-lowing assumptions: Changes in market interest rates affect the interest income or expense of floating

rate interest financial instruments and, in the case of fixed rates that were contracted during the period of analysis, changes in the interest rates also affect the latter;

Changes in market interest rates only affect interest income or expense in relation to financial instruments with fixed interests rates if these are recognize at their fair val-ue. As such, all financial instruments with fixed interest rates that are carried at amortised cost are not subject to interest rate risk, as defined in IFRS 7;

In the case of fair value hedges designed for hedging interest rate risks, when the

changes in the fair values of the hedged item and the hedging instrument attributable to interest rate movements are offset almost completely in the income statement in the same period, these financial instruments are also not exposed to interest rate risk;

Changes in market interest rates affect the fair value of derivatives designated as

hedging instruments; The fair value of derivative financial instruments (“swaps”, “zero cost collars” or

“caps”) and other financial assets and liabilities is estimated by discounting the future cash flows to their net present values, using appropriate market rates prevailing at yearend and assuming a parallel shift in yield curves;


For the purposes of this sensitivity analysis, such analysis is performed based on all

financial instruments outstanding during the relevant year. Sensitivity analyses are performed by changing one variable while maintaining all other variables unchanged. Nonetheless, this is a restrictive and highly unlikely assumption, since variables tend to be correlated. If interest rates had been 75 basis points higher and all other variables were held con-stant, assumptions unlikely occur due to interest rates correlation with other variables, the impact in the Company’s net profit and equity would be the following:

+75 b.p. +75 b.p.

Net Profit (1) (750) (364)

2016 2015

(1) This is mainly attributable to the Company’s exposure to interest rates on its variable rate bor-rowings. As of 31 December 2016 and 2015 the interest rate sensitive analysis was not prepared considering a decrease of 25 basis points, because Euribor in 2016 and 2015 is lower than 0.25%. In management’s opinion, the sensitivity analysis is unrepresentative of the inherent in-terest rate risk and the year-end exposure may not reflect the exposure during the year, due to the repayments made.

2.11. Judgments and estimates

In the preparation of the accompanying financial statements estimates were used which affecting the assets and liabilities and also the amounts booked as income and expenses during the reporting period. The estimates were calculated using the best information available, at the date of ap-proval of the financial statements, of the events and transactions in course and of the experience from current and/or past events. However, events may occur in subsequent periods that were not anticipated as of the date of these statements and, consequently were not included in those estimates. Changes in the estimates after the closing of the consolidated financial statements will be booked on the subsequent year, as defined in IAS 8. The main assumptions used by the Company on its estimates are disclosed on the corre-sponding note.

2.12. Subsequent Events

Events occurred after the reporting date that provide additional information about condi-tions that existed at these statement of financial position date (adjusting events) are reflected in financial statements. Events occurred after the reporting date that provide information on conditions that occur after the reporting date (non-adjusting events) are disclosed in the financial statements, if materially significant.


3 INVESTMENTS IN GROUP COMPANIES

As of 31 December 2016 and 2015 the Company held the following participations in group companies:

Percentage of sharecapital held Equity Net Profit Book value Book value

Company 31.12.15

Sierra Developments, SGPS, S.A. 100,00% 1 152 869 127 1 142 429 1 142 429Sierra Management, SGPS, S.A. 100,00% 9 144 1 808 6 550 6 550

1 148 979 1 148 979

31.12.16

4 SUPPLEMENTARY CAPITAL GRANTED

As of 31 December 2016 and 2015 supplementary capital granted was made up as fol-lows:

31.12.16 31.12.15

Sierra Developments, SGPS, S.A. 49 434 100 43449 434 100 434

5 LOANS TO GROUP COMPANIES

As of 31 December 2016 and 2015 loans to group companies was made up as follows:

Sierra Developments, SGPS, S.A. 14 038 28 34414 038 28 344

31.12.16 31.12.15

6 OTHER RECEIVABLES

At 31 December 2016 and 2015 other receivables was made up as follows:

31.12.16 31.12.15

Tax consolidation Regime (Note7):Sierra Portugal, S.A. 693 691Sierra Investments, SGPS, S.A. 346 338Sierra Management, SGPS, S.A. 84 95Paracentro - Gestão de Galerias Comerciais S.A. 37 29Sierra Developments, SGPS, S.A. 36 2

Other debtors:Parklake Shopping, S.A. 69 4Others 217 4

Tax to be recovered (amount paid under tax debts exceptional payment regime - "RERD") 3 707 3 707Others claimed taxes 23 19

5 212 4 889

The amount of kEuro 3,707 relates to the payment made in 2013 by the Company within the Special Tax Debts Payment Regime (“RERD”) established by the Portuguese govern-


ment in the law approved in October 2013 (Law 151-A/2013) by which the entities that pay the tax notifications will be exempt of the payment of interests and penalties; this amount relates to corrections of the 2005 CIT due to: (i) non-deductible interest expens-es amounting kEuro 378; and (ii) corrections concerning the price adjustment related with the sale of shares of Cascaishopping in 1996 amounting to kEuro 3,329. The Com-pany contested the tax notifications received and did not record any impairment loss to face eventual losses on those amounts, as the Board of Directors believes that the result will be favourable to the Company (Note 24). The ageing of the other receivables is as follows:

31.12.16 31.12.15

Not due 1 218 1 1780-90 days 287 4+ 360 days 3 707 3 707

5 212 4 889

7 STATE AND OTHER PUBLIC ENTITIES

According to current legislation, the fiscal declarations of Portuguese companies are sub-ject to a revision and correction by the tax authorities within the period of four years, exception made when fiscal losses have occurred, fiscal incentives have been conceded or tax auditing or claims are in course. In those cases, depending on circumstances, the due dates can be extended or suspended. Because of that the fiscal declarations of the Portuguese companies of the years 2013 until 2016 can be changed. The Board of Directors considers that any eventual modification to the fiscal declarations will not have a significant impact on the financial statements as of 31 December 2016. Under the terms of Article 88 of the Corporate Income Tax Code, the companies are sub-ject to autonomous taxes on a series of charges of the rates established in this article. The Company is taxed for income tax purposes under the tax consolidation regime ("Re-gime Especial de Tributação dos Grupos de Sociedades” - RETGS), being the consolidated taxable income of the companies included in it, calculated at the level of Sonae Sierra as “mother company” of the group. Anyway, each company included in RETGS computes and records at its individual level its separate estimate of current income tax by credit or debit of an account receivable from or payable to Sonae Sierra. The companies included in the RETGS are the following:

ARP Alverca Retail Park, S.A.,

CCCB Caldas da Rainha - Centro Comercial, S.A.,

Paracentro - Gestão de Galerias Comerciais, S.A.,

Parque de Famalicão, Empreendimentos Imobiliários, S.A.,

Sierra Developments SGPS, S.A.,

Sierra Investments SGPS, S.A.,

Sierra Management SGPS, S.A. and

Sierra Portugal, S.A..


As of 31 December 2016 and 2015 state and other public entities was made up as fol-lows:

Asset Liability LiabilityIncome tax

Tax recoverable from previous years 822 - 822 - Income tax - 76 - 242 Income taxes retained - wages - - - 9

Social security contributions - - - 9

822 76 822 260

Asset

31.12.1531.12.16

Income tax as of 31 December 2016 is detailed as follows:

Estimate of current income tax - Company (Note 21) (881) Estimate of current income tax - RETGS (Notes 6 and 16) 988 Withholding taxes / Payments on account (31)

76

31.12.16

8 OTHER CURRENT ASSETS

As of 31 December 2016 and 2015 other current assets was made up as follows:

31.12.16 31.12.15Interests on loans granted to group companies:

Sierra Developments, SGPS, S.A. (Note 22) 204 618Insurance prepayment 117 103Bank commissions prepayment 208 213Other 132 106

661 1 040

The amount of kEuro 204, relates to interests receivable on short term loans granted to Sierra Developments, SGPS, S.A..

9 CASH AND CASH EQUIVALENTS

At 31 December 2016 and 2015 cash and cash equivalents was made up as follows:

31.12.16 31.12.15

Bank deposits payable on demand 508 236508 236


10 CAPITAL

At 31 December 2016 the share capital was made up of 32,514,000 fully subscribed and paid up ordinary shares of Euro 4.99 each. The following entities own the share capital at 31 December 2016 and 2015:

Entity 2016 2015

Sonae, SGPS, S.A. 50% 50%Grosvenor Investments, (Portugal), Sarl 50% 50%

Following the Shareholders General Meeting deliberation, dated 8 April 2016, the net re-sult of 2015 had the following application:

Retained earnings (4 587)(4 587)

11 BOND LOAN

As of 31 December 2016 and 2015, bond loan was made up as follows:

Reimbursementplan

Bond loan 75 000 - 75 000 75 000 - 75 000 January 2018

Total Bond Loan - 75 000 - 75 000

(173) (92) (160) (265)

(173) 74 908 (160) 74 735

Deferred financing costs incurred on the issuance of the bond loan


Current

31.12.16 31.12.15

Current Non-current Non-currentLimit Limit

As of 31 December 2016 the fair value of the bond loan was kEuro 79,124. The principal conditions associated to the bond loan issued on 25 January 2013 were as follows:

1,500 bonds: Nominal value: 50,000 Euro Maximum term: 5 (five) years Annual interest rate: the interest rate, which is variable, is indexed to the EURIBOR 6 month’s rate on the second working day proceeding the interest period, with a spread of 5.80% p.a. Interest Payment: half yearly in arrears, on 25 January and 25 July of each year. Reimbursement: at par, in one payment on 25 January 2018 the payment date of the last coupon Tax regime: in accordance with the legislation in force


At 31 December 2016, loans and the respective interests are repayable as follows:

Repayment Interest Repayment Interest

N+1 - 5 430 - 5 082N+2 75 000 2 763 75 000 2 880

75 000 8 193 75 000 7 962

31.12.16 31.12.15

12 BANK LOANS AND

At 31 December 2016 and 2015 bank loans was made up as follows:

Bank loans:Caixa de Crédito Agricola 20 000 - 20 000 20 000 - 20 000

Short term facilities: Santander Totta 35 000 25 000 - 35 000 25 000 -BPI 12 470 - - 12 470 4 665 -CGD 26 750 - - 25 000 24 179 -

Montepio Geral 20 000 - - 20 000 - -Novo Banco 5 500 - - 5 500 - -

Total Bank loans 25 000 20 000 53 844 20 000

24 949 19 947 53 794 19 896(50) (104)

Deferred financing expenses incurred on the issuance of the bank loans

Financing Entity

31.12.16 31.12.15Used amount Used amount

Limit Current Non-current

Limit Current Non-current

(51) (53)

As of 31 December 2016 the fair value of the bank loan registered as non-current was kEuro 21,062. Bank loans bear interests at market interest rates and were contracted in Euro.

13 DERIVATIVE FINANCIAL INSTRUMENTS

As of 31 December 2016 and 2015, the Company’s financial instruments related to interest rate swaps were as follows:

Due dateFinancial hedging instruments:

Novo Banco - 513 2016BPI Madrid - 820 2016

- 1 333

75 000

31.12.16

Loan LoanFair value of the financial instruments

31.12.15Fair value of the financial instruments

75 000


14 LOANS FROM GROUP COMPANIES

At 31 December 2016 and 2015 loans from group companies was made up as follows:

31.12.16 31.12.15

Loans obtained:Sierra Investments, SGPS, SA 43 405 8 999Sierra Management SGPS, SA 8 880 9 077Sierra Spain Shopping Centers Services, S.L. 7 250 5 814Sierra Portugal, S.A. - 14 642Sierra Italy, Srl - 450Paracentro - Gestão Galeria Comercial S.A - 137

59 535 39 119

The amounts payable refers to loans obtained from group companies for less than one-year period and bear interests at market interest rates.

15 SHAREHOLDERS

At 31 December 2016 and 2015 shareholders was made up as follows:

31.12.16 31.12.15Dividends payable

Grosvenor Investments (Portugal) Sarl - 12 193Sonae SGPS , S.A. - 12 193

- 24 386

On 20 June 2016, the Company paid the amount of kEuro 24,386 regarding to the divi-dends approved on 16 April 2015. In accordance with the decision taken on 27 May 2016 by the shareholders, it was ap-proved to distribute dividends out of of the free reserves, amounting to kEuro 24,711. The dividends were paid on 20 June 2016.


16 OTHER PAYABLES

At 31 December 2016 and 2015 other payables was made up as follows:

31.12.16 31.12.15

Tax consolidation regime:Sierra Portugal, S.A. 110 70CCCB Caldas da Rainha - Centro Comercial, S.A. 6 6Paracentro -Gestão Galeria Comercial S.A. 9 4Sierra Developments, SGPS, S.A. 4 3Parque de Famalicão, Empreendimentos Imobiliários, S.A. 40 3Sierra Investments, SGPS, S.A. 3 1

36 -

Services rendered: Parklake Shopping, S.A. - 2Sierra Investments, SGPS, S.A. - 1

59 -Other 6 9

273 99

The amounts reported above have the following repayment plan:

31.12.16 31.12.15

Short term:0-90 days 65 1290-180 days 208 87

273 99

17 OTHER CURRENT LIABILITIES

At 31 December 2016 and 2015 other current liabilities was made up as follows:

31.12.16 31.12.15

Accrual for vacations and vacations bonuses and bonus 187 470Interest payable:

Sierra Investments, SGPS, S.A. 1 171 582Sierra Portugal, S.A. - 487Sierra Spain Shopping Centers Services, S.L. 147 136Sierra Management. SGPS, S.A. 82 86Sierra Italy Srl - 25Sierra Germany GmbH - 13Paracentro - Gestão Galeria Comercial S.A. - 3

Interest bond loans 1 871 1 925Interest derivative - 763Interest bank loans 379 355Financing costs payable 118 94Services rendered by third parties 39 28Committees of guarantees 10 8

4 004 4 975


The caption of “Accrual for vacations and vacations bonuses and bonus” as of 31 Decem-ber 2016 and 2015, include the amounts of kEuro 187 and kEuro 290, respectively, re-lated to remuneration bonus attributed to some employees of the Group, which will be paid in the future, as long as the employees involved are still employees of the Group as of the payment date. This remuneration bonus will be adjusted, in each of the following periods, until the corresponding payment date, by the annual variation of the Net Asset Value (NAV) of the Group and for the remuneration bonuses attributed in 2011, inclusive, will be also adjusted according to the direct result of the Group and possible sales of as-sets during the deferred period. These remuneration bonuses are amortised on a straight line basis over the deferred period and recorded as expense, on the basis of the gross amount that was attributed to those employees, and any subsequent adjustment derived from the variation of the Group’s NAV or other is recorded in the statements of profit and loss of the year in which the variation occurs.

18 OTHER OPERATING REVENUE

Other operating income for the years ended 31 December 2016 and 2015 is made up as follows:

2016 2015

Recovery of costs 33 1233 12

19 OTHER OPERATING EXPENSES

Other operating expenses for the years ended 31 December 2016 and 2015 are made up as follows:

2016 2015

VAT 10 12Stamp duty 8 2Other 10 10

28 24


20 NET FINANCIAL RESULTS AND NET INCOME FROM INVESTMENTS

Net financial results are made up as follows:

2016 2015Expenses:

Interests on loans obtained from group companies (Note 22) 2 394 2 735Interests on bond loans 4 338 4 496Interests on overdrafts 61 240Interests on bank loans 1 217 492Losses on fair value of financial derivatives (Note 21) 16 95Stamp duty related to financing 88 114Bank charges 1 123 701Guarantees 188 167Others - 168

9 425 9 208Net financial expenses (8 423) (8 333)

1 002 875Income:

Interest income (Note 22) 356 636Interest default - 49Other 646 190

1 002 875

Gains and losses on investments are made up as follows:

2016 2015

Dividends 2,078 3,578

2,078 3,578

The amount recorded under the caption "Dividends" refers to dividends attributed and received from its subsidiary Sierra Management, SGPS, S.A..

21 INCOME TAX

Income tax for the years ended 31 December 2016 and 2015 is made up as follows:

2016 2015

Current income tax (Note 7) (881) (824)Correction of current income tax estimate of previous year (236) (245)

(1 117) (1 069)


The reconciliation between tax expense and the accounting profit multiplied by the applicable tax rate is as follows:

2016 2015

Profit before income tax (6 579) (5 656)

Dividends (Note 20) (2 078) (3 578)Correction related to financial hedging instruments (Note 20) 16 95Other 35 (4)

Taxable profit (8 606) (9 144)

Effect of different income tax rates in other countries - -(8 606) (9 144)

Income tax rate in Portugal 21,0% 21,0%(1 807) (1 920)

Deferred income tax not recognized 1 807 1 920Tax rate change effect - -Regularization of the consolidated tax estimate (881) (823)Insuficiency of tax estimate (236) (246)

(1 117) (1 069)

22 RELATED PARTIES

Balances and transactions that existed with related parties, during the years ended 31 December 2016 and 2015, in addition to the loans conceded to and obtained from the shareholders mentioned in Notes 5 and 14, are detailed as follows:

31.12.16 31.12.15 31.12.16 31.12.15

Sierra Portugal, S.A. 693 691 169 70Sierra Management, SGPS, S.A. 84 95 - -Sierra Investments, SGPS, S.A. 346 338 3 2Paracentro - Gestão de Galerias Comerciais S.A. 37 29 9 4Parklake Shopping, S.A. 69 4 - 2Sierra Developments, SGPS, S.A. 36 2 4 3Parque de Famalicão, Empreendimentos Imobiliários, S.A. - - 40 3CCCB Caldas da Rainha - Centro Comercial, S.A. - - 6 6 ARP Alverca Retail Park, S.A. - - 1 -Sonae SGPS, S.A. - - 36 -

1 265 1 159 267 90

Other Receivables (Note 6)

Other Payables (Note 16)

Balances


31.12.16 31.12.15 31.12.16 31.12.15Sierra Developments, SGPS, S.A. 355 635 34 73Sierra Investments, SGPS, S.A. 1 1 1 479 991Sierra Investments Holding, B.V. - - - -Sierra Portugal, S.A. - - 243 967Sierra Management. SGPS, S.A. - - 385 443Sierra Spain Shopping Centres Services, S.L. - - 244 217Sierra Germany GmbH - - - 13Sierra Italy Srl - - 6 25Paracentro-Gestão de Galerias Comerciais S.A. - - 3 6

356 636 2 394 2 735

(Note 20) (Note 20)

TransactionsInterest income Interest Expense

The remuneration of the Board of Directors, during the years ended 31 December 2016 and 2015, was as follows: 2016 2015

Fixed remuneration - 502Variable remuneration - 140

- 642

23 EARNINGS/LOSSES PER SHARE

As of 31 December 2016 and 2015, basic earnings per share correspond to the net profit divided by the weighted average number of ordinary shares of Sonae Sierra during the year, and was computed as follows:

2016 2015Profit/Losses considered to compute the basic earnings per share

(net profit of the year) (5 462) (4 587)

Number of shares 32 514 000 32 514 000Earning/Losses per share (Euro) (0,17) (0,14)

24 CONTINGENT LIABILITIES AND BANK GUARANTEES

During the year ended 31 December 2015, the Company was notified by the tax authori-ties regarding to the deductibility of the interest incurred with the loans obtained in the year of 2011, in the amount of kEuro 437. The subsidiary Sierra Investments SGPS, SA provided a guarantee in the amount of kEuro 1,253, to the Portuguese tax administration on behalf of Sonae Sierra SGPS, SA, in order to suspend the effects of this process. However, as of 31 December 2012, the Company had been notified by the tax authorities regarding to the deductibility of the interest incurred with loans obtained in the years 2005, 2007, 2008 and 2009 and 2010 as Mother Company of the RETGS in the amount of KEuro 10,307. This notification was claimed by the Company. No provision was rec-orded because the Board of Directors understands that the risk of this contingency is unlikely. In what concerns the year 2005, the Company applied to the Tax Debts Exceptional Payment Regime (RERD) and paid the corresponding tax, which is expected to be reim-bursed as the Company expects a favourable decision from the court regarding the relat-


ed judicial claim (Note 6). In 20 January 2015 the Company has been notified by the court on the second favourable decision. Additionally, as of 31 December 2016 and 2015 the following bank guarantees were granted:

2016 2015

Bank guarantees:Tax processes in course 1 517 2 102To secure the reimbursement of the first instalment of the preliminary sale and purchase agreement with Carrefour Romania

2 108 2 108

To secure the reimbursement of the second instalment of the preliminary sale and purchase agreement with Carrefour Romania

8 500 -

To secure the reimbursement of the third instalment of the preliminary sale and purchase agreement with Carrefour Romania

5 370 -

To secure the remedy of any flaws of the construction works related to the Carrefour Romania that might occur within one year as of the signing of the Acceptance and Handing Over Certificate.

415 -

17 910 4 210

As of 31 December 2016 the amounts recorded under the caption "Tax processes in course", refer to guarantees issued in favour of “Direcção Geral dos Impostos”, related to the suspension of income tax notifications for the years 1996 (kEuro 1,493) and of 2013 (kEuro 24). During the year ended 31 December 2014, the Company granted a guarantee in favour of Carrefour Romania in the amount of kEuro 2,108 on behalf of its subsidiary Parklake Shopping S.A., to secure the reimbursement of the first instalment of the purchase price related to the acquisition by Carrefour of the hypermarket unit. During the year ended 31 December 2013, the Company granted a guarantee to the Por-tuguese tax administration in the amount of kEuro 230 on behalf of its subsidiary Sierra Investments, SGPS, SA, for the purpose of suspending the stamp tax notification for the year 2010 related to short-term loans granted to the shareholder. During the year ended December 31, 2012, the subsidiary Sierra Investments SGPS, SA provided a guarantee in the amount of kEuro 8,316, to the Portuguese tax administration on behalf of Sonae Sierra SGPS, SA, in order to suspend the effects of IRC process for the year 2008, in the Fiscal Unit, under the Special Taxation Regime for groups of Socie-ty "RETGS". During the year ended December 31, 2013, the subsidiary Sierra Investments SGPS, SA provided three guarantees in the amount of kEuro 3,192, kEuro 943 and kEuro 163, to the Portuguese tax administration on behalf of Sonae Sierra SGPS, SA, in order to sus-pend the effects of IRC processes for the years 2009, 2010 and 2012, in the Fiscal Unit, under the Special Taxation Regime for groups of Society "RETGS". During the year ended December 31, 2014, the subsidiary Sierra Investments SGPS, SA provided a guarantee in the amount of kEuro 182, to the Portuguese tax administration on behalf of Sonae Sierra SGPS, SA, in order to suspend the effects of IRC process for the year 2013, in the Fiscal Unit, under the Special Taxation Regime for groups of Socie-ty "RETGS".


During the year ended December 31, 2015, the subsidiary Sierra Investments SGPS, SA provided a guarantee in the amount of kEuro 201, to the Portuguese tax administration on behalf of Sonae Sierra SGPS, SA, in order to suspend the effects of IRC process for the year 2014, in the Fiscal Unit, under the Special Taxation Regime for groups of Socie-ty "RETGS".

25 DISCLOSURES REQUIRED BY LEGISLATION

The information on fees charged by the statutory auditor is included in the information disclosed on the consolidated financial statements.

26 APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Board of Directors and authorised for issuance on the 8 of March 2017. However, these financial statements are still depending on the approval by the Shareholders General Meeting, in accordance with business legislation prevailing in Portugal.

27 NOTE ADDED FOR TRANSLATION

This is a translation of financial statements originally issued in Portuguese in accordance with Portuguese Statutory requirements, some of which may not conform to or be re-quired in other countries. In the event of discrepancies, the Portuguese language version prevails.

Sonae Sierra 2016

Relatório de Gestão

SONAE SIERRA RELATÓRIO DE GESTÃO 2016 1 / 55

Quem somos A Sonae Sierra é uma empresa internacional dedicada a servir as necessidades de investidores de retalho imobiliário. Desenvolve e investe em ativos de retalho sustentáveis e fornece serviços de investimento, desenvolvimento e gestão de propriedades para clientes em geografias tão diversas como Europa, América do Sul, Norte de África e Ásia, enquanto cria valor para o negócio e a sociedade.

Apaixonada por introduzir inovação e emoção na indústria de retalho imobiliário desde 1989, a Sonae Sierra tem vindo a interpretar as tendências e a conduzir o movimento que tem definido os ativos do futuro do retalho imobiliário.

Adicionamos valor aos investidores e outros stakeholders colocando o nosso know-how à sua disposição através do desenvolvimento de projetos extraordinários e da prestação de serviços profissionais abrangendo o ciclo de vida completo do retalho imobiliário, alavancado pelo historial de sucesso dos nossos próprios projetos.


O ano em resumo

2.1 Principais acontecimentos

2.1.1 Investment Portfolio e Management

Venda dos ativos Luz del Tajo, AlgarveShopping e Estação Viana Shopping ao Iberia Coop, uma nova joint venture estabelecida entre a Sonae Sierra e a CBRE Global Investment Partners, mantendo a Sonae Sierra a responsabilidade pela sua gestão.

Venda de 41% da participação no Loop5 mantendo uma posição minoritária e a gestão operacional do centro.

Lançamento de um fundo de investimento com o Bankinter no qual somos o parceiro operacional e uma participação no capital de 3.75%.

Redução da participação no Sierra Portugal Fund para 22.5% mantendo os serviços de gestão do fundo e dos seus ativos.

2.1.2 Developments

Inauguração com sucesso do centro comercial Parklake, na Roménia, com 97% (ABL) de taxa de ocupação.

Abertura da primeira fase do desenvolvimento do Zenata Shopping Centre, em Marrocos, e inicio das diligências necessárias para lançar a segunda.

Assegurada a aprovação do McArthurGlen Designer Outlet Málaga adjacente ao Plaza Mayor.

Progressos no nosso primeiro desenvolvimento na Colômbia, em Cúcuta, e o pré-licenciamento do projeto de reabilitação de uso misto em Nuremberg.

2.1.3 Property Management

Assinados 14 novos contratos para serviços de gestão de propriedades totalizando €22.5 milhões.

Alcançado um índice de satisfação dos lojistas de 4,8 em 6 em Portugal e 5 em 6 em Espanha.

Aumento da proporção de resíduos reciclados em toda a carteira de investimento europeia em 3% e a eficiência de água em 1% (ambos em relação a 2015).


2.1.4 Development Services

Assinados 136 novos contratos de serviços de desenvolvimento totalizando €9.3 milhões.

Consolidação da presença no Norte de África com novos contratos na Argélia, Marrocos e Tunísia.

Expansão do negócio na Europa Central com novos contratos de serviços de desenvolvimento na Eslováquia e Alemanha.

2.1.5 Brasil

Venda de 100% da participação no Boavista Shopping, ativo considerado não estratégico.

Início de diligências para a remodelação do Shopping Plaza Sul. Anúncio de planos para empreendimentos de uso misto em terrenos adjacentes

aos Parque D. Pedro Shopping, Shopping Uberlândia e Passeio das Águas Shopping. Opções semelhantes estão a ser analisadas para a expansão do Franca Shopping.

Melhoria da eficiência energética da nossa carteira em 12% e aumento da proporção de resíduos reciclados em 9% (ambos em relação a 2015).

2.2 Prémios e certificações

Sonae Sierra recebeu o Concept and Design Project of the Year do SEE Real Estate Awards pelo ParkLake.

ParkLake e Sonae Sierra nomeados Best Retail Development & Developer of the Year, respetivamente, pelos CIJ Awards.

CityLife Shopping District e Freccia Rossa galardoados com o Certificate of Merit na categoria de Business to Business and Services do CNCC Italy Awards, respetivamente.

Centro Colombo recebeu um Silver Award in Customer Services da 2016 ICSC Solal Marketing Awards pela sua área de cuidados de bebés.

Sonae Sierra Brasil e Shopping Metrópole receberam um Gold Award na categoria de Institutional Campaigns Marketing dos ABRASCE Awards (Brazilian Council of Shopping Centres) pelo STEP 9 e a feira gastronómica noturna, respetivamente.

Uberlândia Shopping recebeu um Silver Award na categoria Newton Rique Sustainability dos ABRASCE Awards pela gestão de energia e água.

Obtenção das certificações OHSAS 18001 pelo Safety, Health and Environment Management Systems no LeiriaShopping e MadeiraShopping.

Obtenção das certificações ISO 14001 e OHSAS 18001 pelo Safety, Health and Environment Management System no CC Continente de Portimão.

BREEAM e UNE 170001-2 certificações obtidas pelo ParkLake.


2.3 Indicadores de performance

4

96

142

181

2013 2014 2015 2016

Resultado Líquido €m

111106

105

97

2013 2014 2015 2016

Resultado Operacional Líquido €m

1.0001.115 1.180

1.418

2013 2014 2015 2016

Real Estate NAV €m

5.638 6.006 5.958

6.955

2013 2014 2015 2016

OMV 100%

2.303 2.307 2.298 2.291

2013 2014 2015 2016

ABL sob gestão

9,4%10,8%

15,6%

12,2%

2013 2014 2015 2016

Development Ratio


A Empresa Sonae Sierra é uma empresa internacional especialista na prestação de serviços no setor de retalho imobiliário. Foi fundada em Portugal em 1989, e é detida em 50% pela Sonae SGPS (Portugal) e 50% pela Grosvenor Group Limited (Reino Unido).

A nossa visão é desenvolver e servir propriedades vibrantes centradas no retalho.

Através de uma estratégia integrada de aumento da exposição a desenvolvimentos e uma crescente oferta de serviços profissionais, acrescentamos valor aos investidores e stakeholders criando parcerias com estes e colocando o nosso know-how à sua disposição.

Temos como objetivo ser um parceiro de referência desenvolvendo parcerias de confiança e de longo prazo com todos os stakeholders, guiados por uma clara ênfase na confiança, integridade, eficiência e flexibilidade. Partilhamos o nosso comprovado historial para melhor servir os interesses dos nossos clientes e fornecer o aconselhamento adequado aos investidores, ao mesmo tempo que proporcionamos um valor excecional alavancado numa estratégia orientada para a sustentabilidade.

A nossa visão assenta em valores e princípios fundamentais relacionados com a cultura de negócio, na nossa responsabilidade para com os colaboradores, o ambiente e comunidades locais e na independência do poder político.


3.1 Onde estamos e principais acontecimentos

A nossa política de parcerias sólidas, tanto com investidores internacionais como parceiros locais, providencia o suporte financeiro e a inteligência de mercado necessários para expandir com sucesso o negócio em novas geografias.

A Sonae Sierra opera com escritórios corporativos em 12 países providenciando serviços aos clientes em geografias tão diversas quanto Portugal, Argélia, Brasil, Colômbia, Alemanha, Grécia, Itália, Marrocos, Roménia, Rússia, Eslováquia, Espanha, Tunísia e Turquia.

3.2 Principais acontecimentos

45

centros comerciais detidos com OMV de €7 mil milhões

78

centros comerciais geridos e/ou detidos

2,316milhões m2 ABL total gerido

10

projetos em desenvolvimento, incluindo 4 para terceiros

€385,6 milhões de rendas recebidas em centros comerciais detidos

427,4

milhões de visitas em centros comerciais geridos

€5.132

milhões de vendas dos lojistas em centros comerciais detidos

1.068

colaboradores


3.3 Parcerias e clientes

Temos como objetivo criar parcerias de longo prazo com organizações a nível mundial que nos veem como o seu parceiro de eleição.

O negócio da Sonae Sierra não seria o que é hoje sem os seus parceiros (P) e clientes de serviços (C). Estas parcerias garantem a solidez financeira, a capacidade de obter rapidamente um conhecimento profundo dos mercados, proporcionando ainda novas oportunidades.

ARGÉLIA (P) Cévital Group (C) Dahli (C) Immobis

AZERBAIJÃO (C) Baghlan Group

BRASIL (P) Marco Zero (P) Família Sé (C) Tivoli EP (C) Credit Suisse HG

COLÔMBIA (P) Central Control

FINLÂNDIA (P) KEVA (P) ILMARINEN

FRANÇA (P) AEW Europe (P) CNP Assurance (P) CDC (P) Foncière Euris

ALEMANHA (P) Deka Immobilien (P) & (C) Union Investment (P) Otto Family (P) RREEF (C) Aachener Grundvermögen (C) BHG Gewerbe (C) Commerzbank

GRÉCIA (P) Charagionis Group

IRLANDA (P) Caelum Development

ITALIA (P) Coimpredil (C) Banca Veneto (C) Europa Capital Partners (C) Immobiliare Ametista (C) Generali Real Estate

MARROCOS (P) & (C) Groupe CDG (C) Actif Invest (C) Facenor (C) Foncière Chellah (C) Marjane (C) ONCF

PORTUGAL (P) Bensaúde Group (P) Estevão Neves (P) Sonae RP (P) Sonae MC (P) & (C) CGD (C) Millenium BCP (C) GIL (C) The Edge Group


RUSSIA (C) RosEvro Development

ESLOVÁQUIA (C) J&T Real Estate

ESPANHA (P) Bankinter (P) Eroski Group (P) Iberdrola Inmobiliaria (C) GrouposClásica Urbana (C) Grupo Soluciones

SUIÇA (P) Partners Group

HOLANDA (P) ING Developments (P) APG Investments (P) MAB Development (P) & (C) Redevco

TUNÍSIA (P) Mabrouk (C) Copit

TURQUIA (C) Banio Yapi Market (C) Endülüs Gayrimenkul (C) Ildem Kooperatif (C) Krem Turizm (C) Özdemir Boru Profil (C) Sölen

UAE (P) & (C) Al Futtaim

REINO UNIDO (P) Grosvenor Fund Management (P) McArthurGlen (P) Rockspring (P) Schroders Investment Management (C) Scottish Widows (C) Doughty Hanson

EUA (P) AIG (P) CBRE Global Investors (P) CBRE Global Investment Partners (P) Madison International Realty (P) TIAA-CREF


Estratégia de negócio O nosso modelo de negócio suporta a visão da empresa. É sustentado pelas estratégias de negócio e de sustentabilidade que visam proporcionar retornos financeiros sustentáveis a curto, médio e longo prazo, ao criar valor para a sociedade e para o ambiente.

Os 27 anos de experiência, a combinação do know-how, do compromisso com a inovação permanente e a abordagem de longo prazo no negócio, criaram uma estratégia integrada que abrange desenvolvimento, propriedade e gestão de centros comerciais, bem como prestação de serviços a terceiros. Financiada por uma combinação prudente de capital próprio e dívida, o capital é aplicado numa carteira diversificada geograficamente que inclui desde greenfields, a aquisições com potencial de desenvolvimento/expansão.

O historial dos centros comerciais, a qualidade dos serviços e a capacidade de criar valor financeiro e social para os stakeholders em todo o ciclo de vida de ativos constitui uma vantagem competitiva e permitindo que o negócio se expandisse em vários países e ser distinguido por mais de 160 prémios.

4.1 Estrutura organizacional

A Sonae Sierra está organizada em cinco principais áreas de atividade: Investment Management, Developments, Property Management, Development Services e Sonae Sierra Brasil.

4.1.1 Investment Management

A Investment Management gere um portfolio de fundos imobiliários e ativos operacionais a nível mundial. Oferece produtos de qualidade a investidores de fundos selecionados.

Este negócio adquire ativos desenvolvidos pela Sierra Developments em parceria com investidores institucionais para criar mais valor e permitir à Sonae Sierra empreender e financiar outros projetos de desenvolvimento. Ao construir relações com parceiros-chave, o Investment Management retém, também, posições em ativos com um horizonte a médio e longo prazo, e maximiza o retorno indireto ao canalizar serviços para outros negócios tais como gestão de propriedade.

4.1.2 Developments

A área de Developments analisa o mercado de desenvolvimentos / aquisições imobiliárias de modo a encontrar oportunidades em nome da Sonae Sierra e de outros co-investidores.

Esta área de negócio é responsável pela prestação de serviços relacionados com o financiamento e execução de novos projetos. O seu modelo de investimento preferencial é a partilha com outro investidor numa logica de 50/50, esperando vender a participação nos projetos a terceiros depois da conclusão (preferivelmente através da Investment Management) para financiar novas oportunidades. Envolve-se com parceiros e fornecedores para assegurar a


adoção e implementação de elevados padrões de qualidade, de sustentabilidade ambiental, de responsabilidade social, de segurança e saúde eficazes e promove abordagens criativas e pioneiras adaptadas às necessidades das comunidades locais. Respeita os valores e a cultura locais e cria valor com base numa abordagem sustentável e de longo prazo.

4.1.3 Property Management

A área de Property Management fornece a gestão de propriedades, comercialização e serviços de marketing para os ativos detidos pela Sonae Sierra e em nome de clientes. Com uma abordagem centrada no cliente, a Property Management visa alinhar os seus interesses com uma gama diversificada de investidores/clientes, a fim de maximizar as receitas, margens e os valores dos ativos de longo prazo.

O negócio orgulha-se de manter relações fortes com os lojistas, garantindo procedimentos operacionais padrão eficazes e eficientes e a introdução de conceitos inovadores para envolver e atrair os consumidores.

4.1.4 Development Services

A área de Development Services proporciona o desenvolvimento de soluções imobiliárias para clientes a nível mundial.

O negócio aplica o seu conhecimento ao providenciar um vasto leque de serviços de desenvolvimento abrangendo arquitetura, gestão de projetos e engenharia, aderindo aos seus princípios fundamentais de inovação e de foco no cliente. Associa-se a especialistas de alta qualidade para servir um maior número possível de projetos. O negócio serve diversos tipos de clientes e alinha os seus interesses com os destes para maximizar o compromisso, receitas e margens.

4.1.5 Brasil

A Empresa está cotada na BM&F BOVESPA com um free float de 33%, sendo o restante uma parceria 50/50 entre a Sonae Sierra e um investidor europeu. A Sonae Sierra Brasil opera de forma autónoma, investindo, desenvolvendo e gerindo os centros comerciais no Brasil.

4.2 O ambiente operacional

O sucesso do nosso modelo de negócio depende da disponibilidade de um conjunto de recursos que abrangem o capital financeiro, o capital manufaturado, o capital intelectual, o capital humano, social e natural. A Sonae Sierra, no desempenho das suas atividades, depende e impacta na quantidade e qualidade desses capitais de diferentes formas. A quantidade de capital por regra não é estática.

Foram identificadas tendências globais para cada um dos 6 capitais que impactam de forma mais significativa o negócio e foi indefinida a estratégia em função disso.

Para manter a base de capital empregue e servir os clientes, contamos com vários recursos financeiros tais como capital próprio, dívida e dinheiro, e mercados financeiros e de investimento estáveis.


Em resultado da crise económica na zona euro, os bancos europeus têm reduzido o seu apetite pelo risco, tornando-se mais difícil obter empréstimos para financiar o negócio imobiliário, especialmente novos desenvolvimentos. As tendências atuais e futuras a nível macroeconómico incluem a subida do nível da dívida, o envelhecimento da população e os desafios das infraestruturas. Estima-se que em 2025 o crescimento económico global será predominantemente gerado em economias emergentes.

Ao perseguir o crescimento numa base de capital-light, está a ser reduzida a exposição ao risco do capital financeiro e a ser criado mais espaço para obtenção de financiamento ao nível dos ativos. Estão também a ser exploradas as oportunidades de crescimento para serviços imobiliários de retalho nos mercados emergentes.

É necessário capital manufaturado sob a forma de edifícios, materiais, infraestrutura urbana e equipamento para adquirir, desenvolver, gerir e vender imóveis em nome da Sonae Sierra e dos clientes.

As oportunidades para a regeneração urbana em mercados maduros predominam em vez de projetos de raiz, com ênfase no desenvolvimento de projetos de uso misto. Neste contexto, as estratégias de gestão integrada de ativos irão tornar-se motores do crescimento urbano sustentável. Dentro destes projetos, o retalho imobiliário irá contribuir para criar ou para reanimar o sentido de lugar, fornecer uma plataforma para diferentes grupos de interessados e membros da comunidade se ligarem fisicamente e se envolverem.

Como parte da estratégia de alocação de capital, estamos a privilegiar, para além de conceitos de retalho tradicionais, oportunidades de expansão. Estamos preparados para entrar em parcerias e servir os clientes em projetos de uso misto, ou seja, em projetos de regeneração urbana.

O capital intelectual constitui um diferencial importante para a empresa. Procuramos oferecer aos nossos clientes uma abrangente experiência em retalho imobiliário,

e de mercado de ponta e conhecimentos de comportamento do consumidor.

O capital intelectual é cada vez mais um trunfo no mundo empresarial de hoje. A tecnologia digital permite que o capital intelectual se torne cada vez mais transparente e divulgado. Isto apresenta oportunidades e desafios significativos para o sector de prestação de serviços profissionais, o qual deve encontrar maneiras de capturar os benefícios das novas tecnologias.

O capital intelectual está a ser aproveitado para conquistar novos clientes e expandir a amplitude do alcance da oferta de serviços. Temos vindo a desenvolver e explorar novas tecnologias para melhorar os nossos serviços aos clientes através da melhoria da produtividade, aumentando a eficiência na gestão de ativos e operações de construção e maximizar o envolvimento do consumidor e as vendas no retalho em parceria com os lojistas.

Enquanto prestador de serviços, o capital humano é o pilar da estratégia de crescimento e alberga a maior vantagem competitiva.

Empresas de serviços bem-sucedidas dependem da capacidade de sua força de trabalho para aprender e agir mais rapidamente do que a concorrência. Atrair e reter gestores talentosos, qualificados e dedicados e pessoal técnico é um grande


desafio, dado que a escassez de talentos se faz sentir mais acentuadamente em sectores e regiões geográficas específicas. Neste contexto, as empresas terão de se concentrar em oferecer um ambiente de trabalho mais aberto, flexível e diversificado, com boas perspetivas de carreira e de um trabalho interessante.

A proposta de valor empregue abrange uma ampla gama de oportunidades de formação e de desenvolvimento de carreira; políticas de trabalho flexíveis e um forte compromisso com aspetos de sustentabilidade, tais como gestão ambiental, segurança e saúde e desenvolvimento económico local.

O capital social e relacional abrange todos os principais stakeholders, incluindo investidores, lojistas, consumidores, fornecedores, entidades financeiras, as comunidades e as autoridades locais.

Os investidores globais estão a assumir projetos de desenvolvimento, por vezes, construção ou desenvolvimento de toda uma nova zona urbana. As relações com os lojistas estão a mudar, e para as empresas mais inovadoras no sector imobiliário, o conceito de proprietário e lojista está a tornar-se rapidamente ultrapassado. Os consumidores, por sua vez, estão a forçar os retalhistas a repensar os seus modelos de negócio, à medida que o uso da tecnologia muda os seus hábitos de compras.

Neste contexto, o foco será alinhar os nossos interesses com os dos nossos clientes. Estamos a posicionar-nos como um parceiro de escolha para investidores de retalho imobiliário, e através de nosso negócio de administração de imóveis estamos a alavancar o forte relacionamento com os lojistas, a nossa capacidade de inovação e o nosso conhecimento técnico para liderar novos conceitos para aumentar a fidelidade do consumidor e as vendas em todos os ativos. Nos mercados emergentes, onde estamos presentes, estamos a promover parcerias com fornecedores locais, de modo a aumentar a amplitude da nossa oferta de serviços e apoiar as economias locais.

Os ativos de ecossistemas e recursos naturais fornecem-nos o capital natural que faz os lugares onde operamos e distribuem serviços habitáveis.

O resultado da Conferência das Nações Unidas das Partes (COP) 21 viu um consenso global para objetivos de longo prazo a nível de país num esforço para limitar o aquecimento global a um aumento inferior a 2ºC. As cidades podem também assumir um papel mais proeminente na criação e entrega de metas locais de redução de carbono (uma tendência que já é evidente nos EUA), e em parceria com as empresas - em particular nos sectores imobiliário e de mobilidade - poderiam tornar-se os condutores mais efetivos e beneficiários da economia de baixo carbono. Ao mesmo tempo, os impactos das mudanças climáticas, tais como a escassez de água ou seca já estão a afetar algumas das operações dos nossos clientes.

Como pioneiros no desenvolvimento e operação de centros comerciais ambientalmente sustentáveis e com experiência de gestão e elaboração de relatórios sobre o desempenho ambiental de centros comerciais desde o ano de 2000, estamos numa posição única para apoiar os nossos clientes na redução do seu impacto ambiental e tornar os seus ativos mais resilientes.


4.3 A estratégia

Dentro do contexto destas tendências-chave, o nosso objetivo primordial é fazer crescer o negócio através de uma combinação de novos desenvolvimentos, aquisições e o reforço das nossas linhas de negócios de serviços.

Temos implementada uma estratégia de negócio robusta que apoia a nova visão como uma empresa voltada para o exterior, e está alinhada com os objetivos específicos de cada um dos negócios da Sonae Sierra.

A nossa estratégia de sustentabilidade apoia a estratégia de negócio através do seu foco na criação de valor compartilhado entre todas as seis frentes de capitais; desde sustentar os recursos e relacionamentos que estão dependentes, até salvaguardar a nossa capacidade contínua de fazer negócios no curto, médio e longo prazo.

Ambas as estratégias são sustentadas pela nossa abordagem à gestão do risco.

4.3.1 A estratégia de negócio – dois pilares para obter resultados financeiros sustentáveis

Através de uma estratégia integrada visamos apresentar valor aos acionistas, parceiros e clientes.

Aumentar a exposição ao desenvolvimento

Ambicionamos aumentar a exposição aos desenvolvimentos na Europa e mercados emergentes. Isto será conseguido através da combinação de aumento da exposição a novas oportunidades de desenvolvimento e de redução da exposição a propriedades de investimento. Iremos também mudar o foco exclusivo em centros comerciais para explorar oportunidades de regeneração urbana e uso misto centradas no retalho imobiliário. Reduziremos o capital financeiro investido no longo prazo através de uma estratégia de capital light e investidores serão convidados a partilhar o risco e o retorno.

Expandir a prestação de serviços profissionais

Afetamos uma mudança de paradigma no nosso modelo de negócio para nos tornarmos uma empresa voltada para o exterior e para o cliente. Com este modelo, intensificaremos o foco em providenciar serviços de retalho aos clientes. Quando executada junto com a nossa abordagem disciplinada ao uso do capital, a provisão de serviços permite maximizar retornos, entrar em novos mercados e construir novas relações. Isto permite-nos também otimizar os recursos da empresa sob flutuações de mercado, parceiros e projetos.

Reciclagem de Capital

A reciclagem de capital atravessa os dois pilares da estratégia. No contexto da crescente procura dos investidores por ativos de retalho nos mercados europeus, apesar de restrições contínuas no acesso à dívida, a reciclagem de capital atua como um facilitador do nosso crescimento futuro, libertando capital para financiar novos desenvolvimentos, reduzindo a exposição a riscos de investimento e protegendo os retornos futuros através da garantia de contratos de gestão. Isto será conseguido através da venda de novos projetos após a sua conclusão, de preferência através da Gestão de Investimentos, que manterá uma posição minoritária; e reduzindo o nosso investimento na nossa carteira principal para


uma posição minoritária através da qual podemos assegurar uma base para fornecer serviços.

4.3.2 A estratégia de sustentabilidade

Desde 2013, que a nossa estratégia de sustentabilidade se tem concentrado em cinco áreas que visam criar valor compartilhado para os nossos negócios, sociedade e meio ambiente. A estratégia nasceu das difíceis condições de mercado que se seguiram à crise financeira global entre 2008 e 2009 e da cultura de austeridade que herdamos no Sul da Europa. As mesmas condições que nos levaram a desenvolver a componente de serviços profissionais do nosso modelo de negócio também nos levaram concentrar atenção no valor que podemos criar em tudo o que fazemos como proprietário, promotor e gestor de imóveis de retalho - seja económico, social ou ambiental.

Enquanto que os desafios globais de sustentabilidade identificados em 2013 continuam válidos, a nossa estratégia de negócios para reduzir o capital investido no nosso portfólio principal, aumentar nossa exposição a novas oportunidades de desenvolvimento e melhorar a prestação de serviços afetou diretamente o nosso modelo de negócios e, portanto, a materialidade da estratégia de sustentabilidade existente. Enquanto isso, a maior ênfase nos nossos negócios de serviços abre novas oportunidades para oferecer valor aos clientes, apoiando os seus objetivos de sustentabilidade.

Em 2016, realizamos uma revisão estratégica da nossa estratégia de sustentabilidade para avaliar a sua capacidade contínua de fornecer valor partilhado no contexto dessas mudanças no nosso modelo de negócios. A nossa estratégia de sustentabilidade revista - que será lançada no início de 2017 - baseia-se fortemente nos nossos compromissos anteriores de oferecer valor, ao mesmo tempo que proporciona um maior alinhamento entre o nosso modelo de negócios e os objetivos de sustentabilidade.

4.4 Gestão do Risco

A gestão de riscos eficaz suporta tanto a nossa estratégia de negócio como a de sustentabilidade garantindo que os riscos associados a todas as nossas atividades de negócio são fortemente geridos e controlados. A gestão de riscos é parte integrante do nosso dia-a-dia, e adaptamos os nossos planos de negócios em resposta aos riscos e oportunidades que percebemos numa base contínua.

As tabelas abaixo resumem os principais riscos estratégicos, controláveis e não controláveis que identificamos no curto e médio prazo, e os passos que tomamos para os gerir de forma eficaz.


4.4.1 Principais Riscos Estratégicos

Risco Estratégia de Mitigação

Escassez de Oportunidades de Desenvolvimento: com oportunidades de desenvolvimento de projetos de raiz cada vez mais limitadas dentro dos nossos principais mercados, enfrentamos um desafio na construção de um pipeline de desenvolvimento em linha com a nossa estratégia.

Através do reforço das nossas competências e identificação de parceiros adequados, estamos a posicionar-nos para tomar vantagem das oportunidades para a regeneração urbana sob a forma de desenvolvimentos de uso misto (desde que estes tenham uma forte componente de retalho).

Perda de oportunidade no negócio de serviços profissionais: a crescente profissionalização do sector imobiliário poderá levar a uma maior dependência de outsourcing, e, consequentemente, abrir mais oportunidades para as empresas de serviços imobiliários. Ao não investir na nossa capacidade de prestação de serviços, corremos o risco de perder uma oportunidade de mercado potencialmente lucrativa.

Revimos o modelo de negócios e a estrutura organizacional, a fim de apoiar o crescimento dos nossos negócios de serviços. Continuamos a procurar ativamente oportunidades para vender serviços de centros comerciais em mercados novos e existentes e estamos a investir em talentos locais para impulsionar o nosso conhecimento do mercado local e melhorar a qualidade dos nossos serviços, onde necessário.

Perda de controlo de ativos: à medida que vendemos ativos ou participações em ativos nos principais mercados, em linha com a abordagem capital-light, arriscamo-nos a perder o controlo dos ativos e da prestação de serviços a estes.

Estamos a negociar acordos com compradores para retermos uma participação minoritária em ativos chave, assim como a responsabilidade a longo prazo pela gestão operacional dos ativos.


4.4.2 Principais Riscos Controláveis


Risco de Liquidez: A escassez atual de crédito bancário na Europa restringe a capacidade da Empresa para financiar novos projetos de desenvolvimento.

A estratégia de reciclagem de capital tem compensado parte da escassez de crédito bancário, procurando alienar ou refinanciar ativos em mercados maduros de forma a financiar a atividade em mercados em crescimento. A Empresa mantém o seu rácio de alavancagem em níveis prudentes, de 27.8%.

Risco de Segurança, Saúde e Ambiente (SHE): O não cumprimento da legislação cada vez mais exigente em torno do uso da energia, das emissões de GEE, dos resíduos e da produção de efluentes e da segurança e saúde a nível europeu e local.

A Sonae Sierra tem em funcionamento um Sistema de Gestão de Segurança, Saúde e Ambiente (SHEMS), que abrange todas as atividades da Empresa. É certificado em conformidade com a norma ISO 14001 e OHSAS18001 de gestão ambiental e de segurança. Além disso, até ao momento alcançámos certificações ISO14001 para o SHEMS em 26 projetos e em 93% dos centros comerciais em operação. Obtivemos a certificação OHSAS 18001 em 10 projetos e em 84% dos centros comerciais em operação.


4.4.3 Principais riscos não controláveis


Aumento das taxas de capitalização: A avaliação dos ativos é afetada pelas condições prevalecentes no mercado de investimento imobiliário e pelo contexto macroeconómico em geral, o que impacta nos resultados indiretos da Empresa.

Como forma de mitigar os efeitos adversos das variações das taxas de capitalização sobre o valor dos ativos, a Empresa tem-se focado no aumento da eficiência operacional dos centros comerciais, introduzindo controlos rígidos na gestão dos ativos e selecionando novos mercados para investir, tendo em consideração o seu potencial de redução das taxas de capitalização a médio prazo (entre outros fatores).

Sustentabilidade das rendas: O ambiente de negociação com os lojistas na Europa tem sido difícil, uma vez que a crise financeira teve impacto na sustentabilidade a longo prazo das rendas. Se o negócio dos lojistas não conseguir manter as rendas contratadas, a Empresa corre o risco de apresentar menores taxas de ocupação.

A abordagem da Empresa na gestão de centros comerciais sempre envolveu uma análise cautelosa do desempenho dos seus lojistas. Nos últimos anos, aumentou a eficiência na gestão dos centros comerciais de forma a reduzir despesas comuns e tem concedido descontos temporários nas rendas de alguns lojistas. Intensificou esforços para aumentar o número de visitantes nos centros comerciais através de eventos e estratégias de marketing. A dispersão geográfica, em particular a presença no mercado brasileiro, reduz o impacto que o menor desempenho de algum lojista possa ter no negócio.



Risco de Segurança, Saúde e Ambiente (SHE): Os acidentes e ocorrências catastróficas (tais como incêndios e ocorrências climatéricas extremas) nos projetos e nos centros comerciais em operação podem causar danos às pessoas e à infraestrutura, incorrer em atrasos e resultar numa perda potencial de valor patrimonial e de reputação.

O SHEMS fornece uma estrutura para antecipar e gerir todos os riscos de segurança nos locais de construção e nos centros comerciais. São realizadas formações regulares de SHE para fornecedores e lojistas e realizadas auditorias às práticas de segurança nos locais de construção e centros comerciais em operação, através de ferramentas SPI e SPO. Além disso, os negócios de promoção e gestão integraram os requisitos do SHEMS nos procedimentos de serviços de gestão prestados, garantindo que o desempenho dos principais fornecedores se encontra de acordo com as exigências SHE. Com a colaboração dos fornecedores e lojistas, realizamos simulacros de emergência regulares em todos os locais. Em relação aos eventos climatéricos extremos, estamos a integrar de procedimentos de adaptação a riscos de mudanças climáticas nos nossos processos de gestão de riscos atuais. Atualizámos a nossa lista de controlo de aquisições para garantir que os principais riscos relacionados a eventos climáticos são avaliados. Temos também como objetivo abordar as prioridades específicas de adaptação às alterações climáticas para cada atividade empresarial, por exemplo, assegurando que os nossos padrões de design para novos projetos e os nossos procedimentos para ativos operacionais asseguram uma proteção adequada contra chuvas fortes e uma resposta eficaz em casos de inundações.


Performance e o futuro

5.1 O contexto global

2016 assistiu à continuação da recuperação económica dentro da Zona Euro. A baixa inflação, a descida do desemprego e políticas monetárias favoráveis reforçaram a economia doméstica, suportando um aumento de 1,7% em termos homólogos do PIB. Em Portugal, o país onde temos mais ativos, a economia ultrapassou as expectativas de um governo anti austeridade. No Brasil, por outro lado, a economia continuou a ser atormentada pela recessão e a combinação de uma crise económica com uma crise política, reduziu a confiança dos consumidores e dos investidores.

Para a Sonae Sierra, os resultados diretos e indiretos do portfolio Europeu, uma base financeira sólida e o contínuo crescimento do negócio de prestação de serviços profissionais contribuíram para um desempenho positivo da nossa Empresa como um todo e olhamos para o ano 2017 e seguintes com confiança e entusiasmo.

Forte desempenho operacional na Europa impulsiona lucro líquido

A Sonae Sierra atingiu os objetivos financeiros fixados para 2016 e gerou um lucro líquido de 181,2 milhões de euros, um desempenho ainda mais forte do que em 2015 e uma realização mais significativa no contexto da mudança estratégica efetuada pela Empresa. De facto, até 2016, a Sonae Sierra procedeu à redução da sua exposição ao capital a ativos operacionais e diluiu a sua participação em fundos para expandir os seus negócios de serviços e concentrar-se mais nos desenvolvimentos. Apesar dessas mudanças, mantivemos a rentabilidade e obtivemos resultados impressionantes, diretos e indiretos, sendo este último fortalecido por um maior valor dos ativos nos principais mercados do Sul da Europa.

Em Portugal, o crescimento do mercado de exportação e a contração das importações aumentaram significativamente o crescimento do PIB nos últimos trimestres de 2016. O desemprego caiu para o seu nível mais baixo desde 2009 e a confiança dos consumidores aumentou. As vendas em termos agregados em todos os 21 ativos portugueses da Sonae Sierra cresceram 4,0%; as rendas aumentaram 3,6% e a taxa de ocupação média atingiu 98,5%. Em Espanha, a recuperação foi impulsionada pelo consumo, um forte crescimento do PIB, e a esperada formação do governo em outubro - permitiu a elaboração de um Orçamento de Estado para 2017 de acordo com os objetivos de défice europeus - conduziu a uma importante estabilidade. Os seis centros comerciais espanhóis apresentaram um aumento de 8,0% nas vendas em termos constantes e um aumento de 6,4% nas rendas.

Em Itália, a economia cresceu a um ritmo lento, mas constante, e a situação política manteve-se estável apesar do voto contra a mudança constitucional. Na Alemanha, a procura nacional e o forte crescimento dos salários estão a impulsionar o consumo privado, mas as incertezas globais estão a pesar sobre o setor exportador. Os ativos da Sonae Sierra em Itália registaram vendas estáveis e um aumento de 3,0% nas rendas; mas o desempenho diminuiu na Alemanha com vendas comparáveis de 1,9%.


A Roménia, por outro lado, registou os maiores níveis de crescimento económico na Europa e o crescimento das vendas e rendas de 15,7% e 5,9%, respetivamente, no único ativo em operação o ano completo. A carteira Romena foi reforçada pelo aumento de 70.000 m2 de ABL resultante da abertura do ParkLake em setembro.

No total, o nosso portfólio de centros comerciais europeus geridos apresentou um crescimento de 2,6%, em termos comparáveis, um crescimento de rendas de 4% e uma taxa de ocupação de 97,2%, com mais de 6.500 contratos de lojistas em vigor no final do ano. Manter vendas, rendas e ocupação elevadas é a pedra angular da nossa filosofia de gestão de centros comerciais, e a nossa política de apoiar os lojistas durante a crise económica na Europa está agora a compensar à medida que recuperamos os descontos de renda concedidos nos anos anteriores.

Resiliência apesar da recessão económica no Brasil

Nos últimos dois anos, o PIB registou uma contração de cerca de 6,8% no Brasil. A queda dos preços das commodities - e a ausência de ajustes políticos efetivos - provocaram uma crise económica que foi exacerbada pelo impasse político. Após o impeachment da presidente Dilma Rousseff em agosto, o ex-vice-presidente Michel Temer assumiu o cargo. Este está a seguir um programa de ajuste e reforma fiscal para restabelecer a confiança, mas enfrenta desafios do Congresso.

Em termos de impactos para o nosso negócio, esta situação resultou em reduções nos gastos de consumo e num mercado de investimento de retalho imobiliário mais fraco. Respondemos com a nossa abordagem de gestão de propriedades resiliente, fazendo os maiores esforços possíveis para apoiar os nossos lojistas durante a crise. Assim como a expansão geográfica do nosso portfolio nos ajudou a sustentar o negócio durante a crise económica na zona do euro, os nossos centros comerciais brasileiros apresentaram um desempenho operacional consistentemente forte, agora é o crescimento de vendas e rendas na Europa que está a contrabalançar o crescimento real negativo no Brasil. No final, este equilíbrio natural permite ultrapassar as expectativas quanto ao desempenho operacional global da Sonae Sierra em 2016, não obstante a nossa exposição a um mercado onde o sector retalhista foi fortemente afetado pela situação económica adversa.

As vendas comparáveis em Reais, cresceram 0,6% e as rendas em 2,8%. Sabemos que estes resultados não constituem crescimento real no contexto de 7,8% de inflação ao longo do ano. No entanto, num ambiente onde muitos dos nossos concorrentes experimentaram uma queda nas vendas no retalho, estes resultados refletem a resiliência dos nossos ativos. E embora três centros comerciais recentemente abertos estejam a demorar mais tempo a amadurecer, a taxa de ocupação média aumentou para 94,8% em 2016, que consideramos alta nas atuais circunstâncias.

O mercado de dívida favorável valida a nossa estratégia de negócio e gestão financeira prudente

De volta à Europa, o programa de compra de títulos de dívida pelo Banco Central Europeu, anunciado em março e iniciado em junho, assinalou positivamente o


mercado de dívida do continente europeu e abriu o caminho para que as empresas contratassem empréstimos a taxas de juros mais baixas.

Este evento, aliado ao melhoramento das condições de investimento e de exploração do retalho imobiliário, permitiu que o mercado de dívida fosse muito favorável para a Sonae Sierra em 2016. A empresa colocou com êxito nova dívida, com um refinanciamento total de cerca de 560 milhões de euros. Reduzimos a nossa dívida global e o spread médio da dívida existente e, em paralelo, reduzimos a nosso rácio de alavancagem de 40% para 28%. A combinação destas conquistas fornece uma forte evidência de que o mercado de dívida compensou a estratégia da Sonae Sierra e mostra como a abordagem de gestão financeira conservadora nos permitiu continuar a ser independentes e a fazer crescer o nosso negócio mesmo em tempos difíceis. Na verdade, o financiamento dos projetos em desenvolvimentos continua a ser caro e limitado, mas o nosso rácio de alavancagem muito prudente permite a não dependência em exclusivo de dívida bancária para ativar a nossa estratégia.

Também continuamos a implementar práticas para aumentar a produtividade em todo o nosso Centro Corporativo e nos centros comerciais de que somos proprietários, um bom exemplo são os € 4,3 milhões de benefícios financeiros tangíveis atingidos com o programa de Improve Our Work (IOW) que está a ser implementado por todas as empresas do Grupo Sonae e que se centra na prestação de serviços da forma mais eficiente possível.

O comportamento positivo dos investidores permitiu reduzir a participação em ativos maduros

Em 2016 foram registadas melhorias significativas nos mercados de investimento em que estamos presentes e, neste contexto, reduzimos a participação em alguns ativos maduros e/ou não estratégicos a preços de mercado em Portugal, Espanha, Alemanha e Brasil. Na Europa, reduzimos a participação no Sierra Portugal Fund para 22,5% e vendemos três ativos do Sierra Fund ao Iberia Coop, um novo fundo lançado em parceria com a CBRE GIP no qual temos uma participação de 10%. Desta forma, conseguimos manter o controlo dos serviços de gestão aos fundos e aos ativos. No final do ano 2016 lançámos um outro fundo novo com o banco espanhol Bankinter, no qual somos sócios operacionais e detemos uma participação minoritária. Estes eventos permitiram superar as expectativas em termos de alienação e desinvestimento de ativos e colocam-nos em boa posição para prosseguir a estratégia de reciclagem de capital em 2017.

Boas perspetivas para nossos principais mercados em 2017

As perspetivas para os nossos principais mercados em 2017 são favoráveis. A estabilidade política em Portugal significa que o défice deve ser inferior a 3%, apoiando melhores condições financeiras para os investidores. Enquanto os desafios no sistema bancário do país continuam, a Sonae Sierra está menos exposta a possíveis constrangimentos, reforçando as relações com os bancos internacionais.

A economia espanhola tem vindo a crescer bem apesar do impasse político que assolou o país durante a maior parte de 2016, tirando força do seu mercado de exportação e da estabilidade do sistema financeiro que adotou as reformas previstas em 2010.


Embora uma possível mudança de governo na Alemanha não seja suscetível de afetar a estabilidade global da economia, em Itália o período de incerteza política poderá afetar as nossas atividades previstas nesse país no primeiro semestre do ano, mas continuamos otimistas de que a situação será resolvida.

No Brasil já vemos vários sinais de que a política económica está a mover-se na direção certa: em dezembro de 2016, a inflação caiu para 6,3%, tendo atingido um pico de 10,7% em janeiro de 2016, e esperamos que continue a reduzir ainda mais no próximo ano. O Banco Central está a reduzir as taxas de juros e é provável que uma série de reformas sejam implementadas para reduzir o déficit do Estado. Se for atingido um bom equilíbrio entre a redução das despesas e o aumento do investimento público, o desemprego deverá reduzir e o consumo interno aumentar durante o segundo semestre de 2017. Em geral, esperamos que as taxas de ocupação nos nossos centros comerciais melhorem e as vendas se alinhem com a inflação, contribuindo para melhores resultados diretos em 2017.

Outros acontecimentos externos, como a saída do Reino Unido da União Europeia e as próximas eleições em alguns países do Norte da Europa, poderão ter impacto, embora seja prematuro prever os resultados. Ao todo, esperamos condições favoráveis de operação nos nossos principais mercados ao longo do próximo ano.

Foco na atividade dos fundos, novos desenvolvimentos e melhorias no portfólio existente

Neste contexto, em 2017 manteremos a nossa estratégia de reduzir a exposição a propriedades de investimento e aumentar a nossa participação em novos desenvolvimentos na Europa e nos mercados emergentes. Colômbia, Norte de África e Europa Oriental serão mercados importantes para construirmos o nosso pipeline de desenvolvimento, e também vamos tentar aumentar a nossa exposição a oportunidades de desenvolvimento multiusos que incluam um componente importante de retalho imobiliário. Vamos, ainda, continuar a fazer crescer o nosso negócio de prestação de serviços profissionais, oferecendo serviços de retalho imobiliário de A a Z.

Em Portugal e Espanha vamos proceder a um grande número de ampliações e de renovações com várias dimensões para atualizar e reforçar a posição dominante dos ativos existentes no nosso portfolio.

Com o lançamento de dois fundos em 2016, pretendemos intensificar ainda mais a atividade de gestão de fundos, com o objetivo de reduzir a nossa participação em ativos maduros, ao mesmo tempo em que aumentamos as receitas com a gestão de fundos e/ou a prestação de serviços de gestão de imóveis. Uma alteração fundamental que esta nova estratégia implicará é a redução de importância relativa das receitas provenientes de rendas que deverão ser compensadas por outras atividades geradoras de receitas - como a prestação de serviços profissionais e as vendas de ativos em operação – para manter ou aumentar os níveis de retorno sobre o capital próprio.

No Brasil, vamos concentrar esforços predominantemente na exploração de todas as oportunidades de criação de valor nos ativos que controlamos em termos de mix de lojistas e de uso de ativos. Daremos especial atenção aos centros que inauguramos nos últimos cinco anos, com foco no aumento das taxas de ocupação. Vamos adotar uma postura cautelosa em relação a novas aquisições e


desenvolvimentos, permanecendo atentos às oportunidades em locais estratégicos com análise cuidadosa do mercado à medida que evolui. Por último, mas não menos importante, preparar-nos-emos para tirar partido das condições de mercado mais favoráveis à medida que se inicia a recuperação económica.

5.2 O nosso desempenho

ParkLake define os mais altos padrões para o retalho moderno dentro e além de Bucareste

Um dos eventos mais importantes para a Sonae Sierra em 2016 foi a inauguração bem-sucedida do ParkLake em Bucareste, na Roménia. Abrangendo um investimento de € 180 milhões em parceria com a Caelum Development, o projeto foi concluído dentro do prazo e no orçamento, com mais de 97% dos seus aproximadamente 70.000 m2 de ABL ocupados na data de abertura. O ParkLake é uma referência no retalho moderno de alta qualidade. Possui uma arquitetura excecional, características inovadoras e um tema integrado baseado em "parque, natureza e família", tem como objetivo tornar-se um local de encontro onde as pessoas podem comer, fazer compras, relaxar, divertir-se e participar numa variedade de atividades de lazer num ambiente estimulante. É um espaço de vida confortável.

Localizado ao lado do Titan Park, os conceitos arquitetónicos do projeto inspiraram-se na paisagem e nas cores do parque para criar uma transição harmoniosa entre o interior e o exterior. Estamos particularmente orgulhosos do design da praça de alimentação internacional, não só apresenta uma oferta gastronómica variada dentro de uma praça central e um terraço, com singulares características arquitetónicas dentro de uma gama de diferentes zonas e vistas sobre o parque adjacente, todos contribuindo para uma melhor experiência para os visitantes.

Em consonância com a longa experiência da Sonae Sierra no desenvolvimento de projetos com ênfase na integração da cultura e do património, a decoração do interior e do ParkLake inclui referências à história local e ao folclore e o edifício oferece espaços culturais dedicados. Desta forma, o ParkLake apresenta-se como um destino verdadeiramente único, no qual os habitantes de Bucareste podem reconhecer e celebrar a sua própria cultura, ao mesmo tempo que apreciam novas experiências e beneficiam de um mix de lojas que combina marcas nacionais e internacionais, algumas delas pela primeira vez no mercado romeno.

Primeiro centro comercial certificado da Roménia

As preocupações com a sustentabilidade foram uma constante durante todo o desenvolvimento do projeto, desde a fase de elaboração de projetos até à gestão da construção e à conclusão final da obra. Foram aplicadas as Normas de Segurança, Saúde e Ambiente da Sonae Sierra e o projeto obteve uma classificação de "Excelente" de pré-certificação de acordo com o padrão internacional de construção de edifícios verdes BREEAM. Além disso, a obra foi certificada de acordo com as normas ISO 14001 e OHSAS 18001 para a gestão do ambiente e da segurança e saúde, respetivamente. Estes dois grupos de certificações são os primeiros do seu tipo a serem alcançados por um projeto de centro comercial na Roménia. O projeto de construção do ParkLake alcançou maior eficiência na gestão de energia e lixo em relação aos projetos anteriores e


uma taxa de reciclagem de 85%. O programa Índice de Práticas Seguras foi totalmente realizado. A Taxa de Frequência de Acidente do Caso de Perda de Trabalho (LWCAFR) de 1,62 excedeu significativamente os objetivos fixados e, combinada com a baixa taxa de severidade de acidentes (ASR), superou as expectativas em comparação com outros projetos.

Quatro meses após a sua abertura em setembro, o ParkLake gerou adesão mediática muito boa, incentivando o feedback dos lojistas e um elevado nível de tráfego de visitantes. O centro comercial teve uma receção positiva por parte dos residentes locais, que estão particularmente impressionados com as opções de lazer e entretenimento, os conceitos de design moderno e a integração do centro comercial com o parque circundante. Além disso, foi distinguido pelo SEE Real Estate Awards e os prémios CIJ que nomearam ParkLake 'Concept & Design Projeto do Ano' e 'Melhor Desenvolvimento de Retalho do Ano’, respetivamente.

Para a Sonae Sierra, o ParkLake tem sido uma experiência de aprendizagem, permitindo obter uma melhor compreensão e reconhecimento do mercado romeno. Os conceitos inovadores testados no ParkLake serão transpostos para futuros desenvolvimentos, onde pretendemos, como sempre, levar as nossas realizações um passo adiante.

Projetos pivôs em Marrocos, Colômbia e Alemanha reforçam as nossas ambições de desenvolvimento

Assim como o desenvolvimento do ParkLake nos coloca numa melhor posição para obter e garantir novas oportunidades nos mercados romenos, da mesma forma os nossos projetos em curso em Marrocos, Colômbia e Alemanha marcam importantes passos na implementação da nossa estratégia.

Em março de 2016 concluímos a primeira fase do desenvolvimento do Centro Comercial Zenata em Marrocos, com a abertura da loja IKEA. A Sonae Sierra está agora a preparar-se para a segunda fase do projeto, cujas obras deverão começar em 2017. O Zenata Shopping Centre é um projeto de joint venture localizado em Casablanca, no qual a Sonae Sierra atua como parceiro minoritário e prestador de serviços com a Marjane, Al Futtaim e Société d'Aménagement de Zenata (Grupo CDG).

Na Colômbia, um mercado emergente onde pretendemos aumentar a nossa atividade de desenvolvimento, estamos a avançar bem com os preparativos para iniciar um projeto de 47 milhões de euros em Cúcuta, em parceria de 50/50 com uma operadora local, a Central Control. Tendo obtido a licença para o projeto, esperamos iniciar a construção nos próximos meses, de acordo com o nosso plano de abrir o centro comercial em 2018. Estamos a estudar ativamente novas oportunidades no mercado colombiano esperando decisões ainda em 2017.

Na Alemanha, adquirimos um local em Nuremberg, em junho de 2015, que inclui o icónico prédio de 250.000 m2 que serviu como centro de distribuição para o revendedor Quelle. Em 2016 procedeu-se ao pré-licenciamento de um projeto de uso mista, com o objetivo de obter uma licença integral para iniciar a construção antes do final de 2017. A preparação de um projeto de regeneração urbana marca uma mudança estratégica para a Sonae Sierra, em linha com a ambição de explorar oportunidades de desenvolvimento de uso misto que incluem o retalho imobiliário como componente central. Na verdade, os nossos planos para o local abrangem um centro comercial de 18.000 m², unidades residenciais (incluindo alojamento para estudantes) e escritórios. O desenvolvimento deste projeto será


um ponto forte de foco para o negócio de desenvolvimento da Sonae Sierra ao longo de 2017.

A Empresa mede sua exposição ao desenvolvimento de propriedades através do rácio de Risco de Promoção. Este rácio pretende monitorizar o peso de recursos já gastos em todos os nossos projetos comprometidos e não comprometidos, e aqueles que ainda estão para ser gastos em todos os nossos projetos comprometidos, em relação à nossa carteira total (incluindo os fundos ainda a ser gastos em projetos comprometidos). O rácio de Risco de Promoção é menor em 2016 do que em anos anteriores, refletindo a conclusão do projeto ParkLake.

Aumento do apetite dos investidores no sul da Europa impulsiona os Valores de Mercado das Propriedades (OMV)

As condições favoráveis que acompanharam a abertura do ParkLake também se revelaram muito positivas para o nosso portfólio europeu como um todo, uma vez que a procura de investidores por ativos de retalho imobiliário aumentou. No Sul da Europa, o aumento do interesse dos investidores fez aumentar os valores das propriedades e conduziu a uma redução das taxas de capitalização, resultando numa significativa valorização da carteira europeia. Com efeito, o OMV da Sonae Sierra atingiu € 1.095 mil milhões no final do ano, um aumento de 17% em relação a 31 de dezembro de 2015.

Este efeito foi mais acentuado na Península Ibérica, onde se encontra a maior parte dos nossos ativos detidos em co-propriedade. O mercado de investimento em Espanha manteve-se forte e o apetite dos investidores também foi evidente em Portugal, com o mercado de retalho imobiliário a alcançar os setores de escritórios e residenciais. Consequentemente, os valores das propriedades em Portugal aumentaram substancialmente durante o segundo semestre do ano e em Espanha as taxas de capitalização quase voltaram ao nível antes da crise económica. Em Itália e na Alemanha, o apetite dos investidores manteve-se forte, embora o produto seja mais escasso, e houve uma compressão de rendas no mercado italiano, apesar dos últimos desenvolvimentos políticos. Além disso, a pressão sobre as rendas está agora a começar a afetar os ativos não-core, bem como os principais.

No Brasil, não houve mudanças nas rendas, mesmo no contexto da deterioração das condições de mercado. Além disso, o impacto positivo da valorização do Real

12.4%

9.4%10.8%

15.6%

12.2%

2012 2013 2014 2015 2016

Risco de Promoção


Brasileiro, quando comparado com o final do ano 2015, contribuiu para um maior valor da carteira global.

Venda de ativos e património líquido alinhados com a abordagem de alocação de capital

Um mercado de investimento favorável na Europa também significou que a Sonae Sierra pode prosseguir com sucesso a sua estratégia de reciclagem de capital. Ao longo do ano, ocorreram várias alienações de ativos e fundos próprios, tudo isso alinhado com nossa estratégia de manter uma participação minoritária e/ou controlo dos fundos e serviços de gestão de propriedades.

Em janeiro de 2016, a Sonae Sierra alienou 41% da sua participação no Loop5 em Weiterstadt, Alemanha, ao Deutsche Asset Management. A Sonae Sierra continua a ser responsável pela gestão do centro comercial e continua a ser proprietária de uma participação de 9% no ativo.

Em março, vendemos uma participação de 25% no Sierra Portugal Fund, que detém participações em nove centros comerciais em funcionamento em Portugal, a o investidor norte-americano: Madison International Realty. Esta operação permitiu à Sonae Sierra diluir a sua participação no fundo de aproximadamente 47,5% para 22,5%, mantendo simultaneamente os serviços de gestão das propriedades e do próprio fundo.

Tendo definido, em conjunto com os restantes investidores, durante 2015 as opções estratégicas para o perfil de longo prazo do Fundo Sierra, 2016 viu alguns desenvolvimentos importantes nesta frente. Em junho, foram colocados no mercado três ativos propriedade do Sierra Fund – o AlgarveShopping e o Estação Viana Shopping em Portugal, e o Luz del Tajo em Espanha. Estes ativos foram adquiridos pelo fundo Iberia Coop, uma joint venture criada pela CBRE Global Investment Partners e pela Sonae Sierra.

Esta abordagem permitiu à Sonae Sierra reduzir a sua participação acionista nestes ativos: enquanto no Sierra Fund detém 50,1% do património líquido, apenas detém uma participação minoritária de 10% no fundo Iberia Coop. Ao mesmo tempo, continuaremos a prestar serviços de gestão de propriedades aos três ativos, que têm uma ABL combinada de 105.064 m2 e uma taxa de ocupação

6,3205,789 5,638

6,006 5,958

6,956

3,328 3,046 2,996 3,147 3,203 3,191

2011 2012 2013 2014 2015 2016

Ativos sob gestão (M€)

Valor total Controlo Sonae Sierra


de 98,6%. A Sonae Sierra está agora preparada para avançar com uma estratégia para reduzir a participação no próprio Sierra Fund.

Em geral, temos focado na venda de ativos onde já maximizamos o potencial de criação de valor, com um perfil de vendas dependendo do tipo de ativo e da estrutura de propriedade atual. Em resumo, estes exemplos mostram que o mesmo resultado pode ser alcançado através de uma gestão ativa dos fundos. As vendas permitem à Sonae Sierra continuar a ser investidor e gestor dos seus fundos e continuar a prestar serviços de gestão de ativos e propriedades, ao mesmo tempo que libertam capital que pode ser reafectado a outros negócios, particularmente à Developments. Permitem, também, que a Empresa reduza a sua exposição a mercados maduros e obtenha fundos para investimentos em mercados emergentes como a Roménia, Marrocos e Colômbia onde o nosso negócio de Desenvolvimento está mais ativo.

Acreditamos também que a Sonae Sierra oferece uma proposta de valor, como parceiro operacional, que é muito atrativa para os investidores. Por um lado, o facto de determos uma posição minoritária relevante de capital na propriedade garante o pleno alinhamento dos interesses entre a Sonae Sierra e os parceiros majoritários. Por outro lado, este modelo permite à Sonae Sierra implementar as suas capacidades comprovadas de criação de valor, em benefício de todos os parceiros na propriedade.

O sucesso que tínhamos até agora em pôr em prática uma série destas estruturas de co-investimento leva-nos a acreditar que esta é uma opção que muitos investidores imobiliários preferem.

Atividade dos fundos sob os focos em 2016 e seguintes

É provável que a intensificação da atividade dos nossos fundos permaneça no centro das atenções num futuro próximo, sobretudo porque o apetite dos investidores no mercado imobiliário do Sul da Europa cria condições adequadas para o lançamento e reestruturação de veículos de investimento.

Em primeiro lugar, como parceira operacional, proprietária minoritária e gestora do fundo Iberia Coop estabelecido com a CBRE GIP, a Sonae Sierra estará ativa na prossecução do objetivo do fundo de construir uma carteira de ativos de retalho imobiliário focada na Península Ibérica.

Em segundo lugar, como parceira operacional e proprietário minoritária de um fundo imobiliário de retalho lançado com o banco espanhol Bankinter no final de dezembro de 2016, procuraremos ativamente investimentos em vários tipos de propriedades de retalho no mercado ibérico. O fundo tem um ambicioso programa de aquisições voltado para pequenos e médios ativos independentes de baixo risco e com contratos de longo prazo. A Sonae Sierra detém uma participação de 3,75% no fundo, a maior parte do fundo foi colocado junto dos clientes da banca privada do Bankinter.

Da mesma forma que a experiência da Sonae Sierra como developer e gestora de centros comerciais sustentáveis dá força à nossa oferta de prestação de serviços profissionais, a abordagem de sustentabilidade da Empresa também é vista como um fator positivo no estabelecimento de relações com investidores e clientes de gestão de fundos. No sector do investimento imobiliário, os investidores, mutuantes e outras partes interessadas estão, em geral, a atribuir maior importância ao desempenho da sustentabilidade dos fundos e dos gestores


de fundos. Embora ainda careça de confirmação de mercado se se traduz realmente num prémio sobre o valor dos ativos, sabemos já que os ativos que não atendem aos padrões de sustentabilidade são percebidos pelos investidores como tendo um valor menor.

Com poucas exceções, as políticas dos parceiros da Sonae Sierra estão alinhadas com os nossos objetivos de sustentabilidade. De forma mais significativa para nós, a participação no Global Real Estate Sustainability Benchmark (GRESB) foi um requisito formal do fundo Iberia Coop, e esse requisito pode aplicar-se a outros fundos que esperamos lançar no futuro. O desempenho da Sonae Sierra no GRESB tem sido forte desde o seu início, e em 2016 mantivemos a nossa posição entre os líderes do benchmark. O Sierra Fund situava-se em 4º lugar no sector retalhista europeu não listado e em 6º lugar no mercado retalhista europeu, o Sierra Portugal Fund está colocado no 7º e 11º nas respetivas categorias, e o Iberia Coop em 10º e 15º.

Extenso programa de renovação em curso para aumentar o valor dos ativos

Da estratégia de gestão de ativos da Sonae Sierra fazem parte os esforços para manter os centros comerciais em ótimas condições para que permaneçam atualizados e atraentes para os visitantes. Além disso, tendo visto o interesse dos investidores no mercado ibérico, é ainda mais importante para maximizar a criação de valor a partir da nossa carteira de investimento à medida que nos preparamos para possíveis vendas futuras. Neste contexto, temos vindo a abrir caminho através de um extenso programa de renovação dos nossos ativos em operação, com especial destaque para a renovação dos centros comerciais que se encontram em funcionamento há mais anos, sem alterações significativas no seu design interior.

Em Portugal, estamos em fase final de renovação no Centro Vasco da Gama e do LoureShopping, e estão em curso grandes obras de renovação no CascaiShopping (na Grande Lisboa). No Centro Vasco da Gama, um centro comercial que foi inaugurado em 1999 e acolhe mais de 20 milhões de visitas por ano, renovamos todo o interior do centro comercial, incluindo tetos, pavimentos e iluminação, para proporcionar uma sensação fresca e moderna que acrescenta um novo apelo para os visitantes. Pequenas expansões também estão em curso no AlgarveShopping, que se espera concluídas antes do verão de 2017, e estamos em processo de obtenção de licenças para expansões de maior dimensão no NorteShopping e no Centro Colombo.

Em Espanha, estamos prestes a iniciar grandes remodelações interiores em GranCasa, Max Center e Valle Real. As obras na GranCasa, em Saragoça, também envolvem um reposicionamento significativo: estamos a desenvolver uma nova praça de alimentação e mudar o conceito do terceiro andar para oferecer uma oferta completamente diferente. O leasing das novas lojas já está em curso, com forte procura de lojistas com potencial, permitindo-nos sentir confiantes no sucesso futuro deste projeto.

Todos esses trabalhos de remodelação e expansão estão a ser planeados e desenvolvidos com atenção às tendências de comportamento dos consumidores. Com referência à nossa visão de 'Centro Comercial do Futuro', estamos a apresentar conceitos inovadores aos nossos parceiros de nos centros onde as obras de renovação estão planeadas, com o objetivo de garantir que os nossos


centros comerciais sejam os mais práticos, excitantes e relevantes para os visitantes nas suas respetivas áreas de captação.

Licença obtida para Designer Outlet em Málaga

Um projeto de expansão único em promoção no nosso portfólio é o McArthurGlen Designer Outlet Málaga, no terreno adjacente ao centro comercial Plaza Mayor, em Espanha. Até o final de 2016 obtivemos todas as aprovações preliminares para iniciar a construção. A licença final foi concedida no início de 2017 e vamos agora iniciar a construção do projeto.

O McArthurGlen Designer Outlet Málaga é uma parceria de 50/50 entre o Sierra Fund e a McArthurGlen, principal proprietária europeia, developer e gestora de lojas de luxo. O projeto de € 115 milhões vai ser desenvolvido em duas fases e vai criar 30.000 m2 de novo espaço de retalho quando estiver concluído. Ele oferecerá aos consumidores uma forte mistura de mais de 170 marcas - abrangendo algumas das mais procuradas marcas de luxo e designer, cadeias internacionais e lojas locais - todos vendem produtos a preços de desconto entre 30-70%. Será o primeiro destino de retalho do seu tipo a abrir no sul da Espanha, e as reações positivas dos potenciais lojistas já se fazem sentir na fase de pré-comercialização.

Evolução positiva das vendas e rendas dos lojistas na Europa

Com algumas exceções, 2016 foi um ano muito bom para a Sonae Sierra em termos do desempenho operacional dos centros comerciais na Europa, onde a maioria dos nossos ativos está localizada.

Taxa de ocupação dos centros comerciais detidos

2016 2015 total l-f-l

Portugal 188,7 182,9 3,2% 4,1%Espanha 45,2 44,8 0,9% 5,7%Itália 24,8 24,1 2,8% 2,8%Alemanha 43,5 41,9 3,9% 3,9%Grécia & Roménia 6,7 2,4 179,2% -12,1%Europa 308,9 296,1 4,3% 4,0%

Brasil (€) 76,7 78,5 -2,3% -2,3%

Brasil (R$) 294,0 286,1 2,8% 2,8%

Total Sierra 385,6 374,6 2,9% 2,7%

Valores em milhões de Euro

Rendas totais % 16/15


No conjunto do nosso portfolio de investimentos europeus, as vendas comparáveis aumentaram 3,7% em relação a 2015, as rendas melhoraram 4% e a taxa de ocupação atingiu 97,2%. O aumento da confiança e da despesa dos consumidores na Península Ibérica fez com que as vendas em Portugal e Espanha crescessem significativamente. O desempenho real em Espanha foi impulsionado pela abertura de algumas lojas adicionais no Plaza Mayor. Outras mudanças no mix de lojas - como a introdução da Forever 21 no Centro Colombo - bem como as obras de remodelação realizadas no CascaiShopping, no Centro Vasco da Gama e no LoureShopping, também tiveram um impacto positivo no número de visitantes e nas vendas.

As rendas cresceram em ambos os países devido ao aumento da taxa de ocupação e, também, por alguma reversão de descontos de renda concedidos aos lojistas durante o período de recessão económica. As rendas em termos homólogos aumentaram 4,1% em Portugal e 5,7% em Espanha, e as taxas de ocupação média situam-se atualmente em 98,1% e 95,4%, respetivamente, em cada país.

Em Itália, as vendas em termos constantes registaram uma ligeira diminuição de 0,2%, o Freccia Rossa registou uma diminuição do tráfego de visitantes devido ao impacto da nova concorrência na sua área de captação. As rendas aumentaram 2,8% e a taxa de ocupação atingiu 99,6%. As vendas na Alemanha foram 1,8% menores do que em 2015, mas as rendas aumentaram 3,9%. Em geral, estamos otimistas: o esforço que estamos a desenvolver para melhorar o mix de lojas e para melhorar a experiência dos visitantes dará frutos no médio prazo.

Na Roménia, a inauguração do ParkLake no início de setembro aumentou as vendas em 163%. ParkLake tem uma taxa de ocupação de 97% e recebeu 2,8 milhões de visitas nos primeiros quatro meses de abertura. No nosso outro centro comercial romeno, o River Plaza Mall, realizamos algumas mudanças significativas no mix de lojas e estamos muito satisfeitos com um aumento de 16% nas vendas e um crescimento de 6% nas rendas em 2016.

Adicionando volume ao negócio de gestão de propriedades

O desempenho dos centros comerciais que gerimos por conta de terceiros está em linha com os da carteira própria da Sonae Sierra. Em todos os países europeus, com exceção da Alemanha, o portfólio sob gestão da Sonae Sierra superou o índice de vendas a retalho, com um desempenho excecional em

2016 2015 total l-f-l 2016 2015 total l-f-l

Portugal 2.222,7 2.101,8 5,8% 3,8% 184,2 176,3 4,5% 1,8%

Espanha 511,7 573,7 -10,8% 7,7% 50,5 57,1 -11,5% 1,8%

Itália 315,3 248,3 27,0% -0,2% 25,3 21,6 17,3% -2,2%

Alemanha 728,7 742,1 -1,8% -1,8% 53,7 53,6 0,1% 0,1%

Grécia & Roménia 48,2 23,9 101,9% 15,8% 6,9 4,8 43,4% -10,9%

Europa 3.826,5 3.689,7 3,7% 2,9% 320,7 313,5 2,3% 1,0%

Novos Mercados 4,2 6,2 -32,7% -32,7% 12,4 12,9 -3,8% -3,8%

Brasil (€) 1.301,3 1.489,2 -12,6% -4,3%

Brasil (R$) 4.984,8 5.424,9 -8,1% 0,6% 97,1 106,6 -8,8% -8,8%

Total Sierra 5.132,0 5.185,1 -1,0% -0,5% 430,2 433,0 -0,6% -1,6%

% 16/15Vendas Visitas % 16/15

Vendas em milhões de Euro

Visitas em milhões


Espanha. Aqui, as vendas em termos comparáveis da carteira sob gestão aumentaram 7,7%, enquanto em Portugal cresceram 3,8%.

Um dos fatores que nos diferencia como um prestador de serviços no negócio de gestão de centros comerciais é que, com 27 anos de experiência como investidor e gestor de centros comerciais, operamos todos os ativos como se fossem nossos. Os nossos colaboradores são qualificados e experientes e estão constantemente em busca de inovação e a procurar valor para nossos clientes.

Com base nesta proposta única, em 2016 conseguimos expandir com êxito os nossos serviços de gestão de propriedades com a assinatura de 14 novos contratos de gestão e/ou comercialiazação em Portugal, Argélia, Alemanha, Marrocos, Espanha, Roménia e Turquia, num valor total de € 4,5 milhões. Em Marrocos, assinamos um novo contrato com a Marjane para a comercialização do Centro Comercial Tachefine, em Casablanca, o que significa que estamos agora a prestar serviços de desenvolvimento, comercialização e/ou gestão de propriedade em nove centros comerciais no país. Este último contrato foi conseguido com base na reputação de excelência e profissionalismo que a Sonae Sierra conquistou desde que entrou no mercado marroquino em 2011.

A introdução do digital apoia os lojistas a maximizar as vendas

O nosso negócio de gestão de propriedades visa maximizar o valor do dinheiro em nome dos nossos parceiros e clientes, concentrando-se em atingir níveis de ocupação elevada, em fazer crescer as vendas dos lojistas, em otimizar a taxa de esforço, em reduzir as despesas comuns e em manter um nível de rendas estável. Como parte deste esforço, apoiamos os lojistas na maximização de vendas, oferecemos formatos de retalho flexíveis e garantimos um mix de lojas diversificado, promovendo a integração de negócios em pequena escala, únicos e locais.

Nos últimos anos, fomos proativos em usar os meios digitais - bem como outras iniciativas - para maximizar as vendas dos lojistas. PromoFans®, a nossa bem-sucedida plataforma de vendas digitais, lançada pela primeira vez em 2012, continua a expandir o seu âmbito e agora conta com mais de 700.000 utilizadores registados. A introdução de novos recursos, tais como questionários interativos, ofertas temáticas e e-coupons resultou em maior participação em 2016. Esta a plataforma foi lançada, também, nos centros comerciais em Itália e na Alemanha.

0

1,500

3,000

4,500

6,000

7,500

9,000

10,500

0

500

1,000

1,500

2,000

2,500

11 12 13 14 15 16

Nº

de

Con

trat

os

AB

L (0

00

m2

)

Portfólio sob gestão

ABL (000 m2) No. de Contratos


Em Portugal, lançámos o 'What's On', um guia ao vivo que transmite as últimas notícias e eventos que ocorrem dentro dos nossos centros comerciais, o que levou a um crescimento de dois dígitos no tráfego dos nossos centros comerciais. Criamos novos canais de atendimento, incluindo um assistente de compras da WhatsApp, e em Espanha e na Alemanha lançamos o Fashion4Me, um estilista digital que fornece conselhos de moda personalizados selecionando combinações de roupas disponíveis em diferentes lojas dos centros comerciais.

No Brasil, iniciamos o projeto de Experiência Digital em 2013, que resultou na criação de várias iniciativas, incluindo o projeto piloto "Serviços Mobile App", "WhatsApp Advisor" e "#BuyTogether". Estamos agora a responder ao crescimento do comércio eletrónico com o desenvolvimento de uma plataforma de vendas on-line.

Em geral, o contacto próximo e frequente com lojistas para desenvolver e otimizar iniciativas digitais como PromoFans, Fashion4Me e What's On - bem como campanhas físicas (como 'Revolutionary Tuesday' no Brasil) contribuíram para uma evolução positiva em termos de satisfação dos lojistas, com um notável aumento na satisfação com a equipa de gestão de cada centro comercial.

A experiência do cliente é a chave

A criação de experiências vibrantes e excecionais para os visitantes dos centros comerciais continua a ser um dos pilares da nossa Empresa e pretendemos desenvolver, reviver e manter centros comerciais onde pessoas de todas as idades possam passar um tempo de qualidade numa variedade de atividades, desde lojas, restaurantes e relaxar com a família e os amigos.

Num período em que consumidores mais experientes e com equipamentos digitais mais evoluídos estão a exigir destinos de retalho dinâmicos, lançámos a nossa visão para o centro comercial do futuro, após um longo envolvimento de colaboradores da Sonae Sierra, com lojistas e visitantes de centros comerciais. Foi produzido um conjunto de orientações claras que servirão de modelo para os centros comerciais novos e existentes e que estão atualmente a ser utilizadas pelas equipas que estão a trabalhar nos nossos projetos de renovação e expansão em Portugal e Espanha. Através do nosso comprometimento com todas as partes interessadas e da exploração das últimas tendências e tecnologias, já estamos a criar novos conceitos e a desenvolver iniciativas para tornar a nossa visão uma realidade. A partir de um vasto programa, onde destacamos conceitos como 'Mall premium', 'Food market', 'Concierge service' e 'Mobility hub', estamos confiantes que oferecerão aos nossos visitantes experiências únicas e estimulantes.

No Brasil, lançamos um novo e promissor projeto chamado STEP 9, que envolve o uso de uma rede aberta e colaborativa de stakeholders para reunir novas ideias de serviços digitais e de marketing que podem ser testadas pelos centros comerciais da Sonae Sierra Brasil. Através do STEP 9, fazemos perguntas desafiadoras a uma vasta audiência - principalmente dirigida a partir dos sites dos nossos centros comerciais - sobre as suas visões, opiniões e preferências em relação a centros comerciais e de lazer. As respostas que recebemos permitem conceber e implementar iniciativas que já foram aperfeiçoadas pelo grupo STEP 9, e testadas numa base de consumidores. Acreditamos que este projeto é único no seu tipo, e recebeu aclamação externa como vencedor de um ABRASCE Golden Award 2016 na categoria Marketing Institucional.


Orientamos com sucesso os centros comerciais através da recessão no Brasil

Em geral, os nossos centros comerciais no Brasil apresentaram bons resultados operacionais no contexto da recessão económica em curso. As vendas de lojistas e rendas em Reais cresceram 0,6% e 2,8%, respetivamente, e a taxa média de ocupação manteve-se estável em 94,8%.

Em resposta à recessão económica sentida, a Sonae Sierra Brasil iniciou um programa de redução de custos e está a realizar uma reorganização das funções de back-office para aumentar a eficiência. Aplicando a mesma estratégia seguida no contexto da recessão económica na Europa, a Empresa, também, realizou significativas economias de custos que se traduziram em menores níveis de despesas comuns para lojistas. Ao centralizar funções que anteriormente eram realizadas no centro comercial, conseguimos uma racionalização de custos e renegociamos os contratos com fornecedores em condições mais favoráveis.

Ao mesmo tempo, estamos a desenvolver os maiores esforços para promover o crescimento das vendas: criamos um banco de dados de CRM para apoiar discussões com lojistas sobre a estratégia de marketing, estamos a lançar promoções fora dos períodos de vendas normais e estamos a emitir e-cupons digitais em parceria com as lojas aderentes. Um destaque notável nesta frente foi a "Terça-feira Revolucionária - O Direito de Pagar Menos", uma campanha realizada em 12 de janeiro de 2016 em todos os centros comerciais da Sonae Sierra Brasil. Numa altura em que os consumidores normalmente estavam a limitar os seus consumos, a ‘Terça-feira Revolucionária’ proporcionou um aumento de 43% no tráfego e um aumento de 83% nas vendas face à mesma terça-feira do ano anterior. Algumas lojas até apresentaram crescimento de vendas superiores a 250%. Tudo isto com a utilização de apenas 1,5% do total do orçamento de marketing para o ano.

Extrair valor dos terrenos detidos no Brasil

No Brasil estamos a planear a remodelação de um centro comercial, o Shopping Plaza Sul, em São Paulo, enquanto analisamos as oportunidades de criar valor nos terrenos adjacentes a quatro outras propriedades.

O Shopping Plaza Sul foi inaugurado em 1994, está implantado numa área geográfica com um elevado poder de compra - um segmento de consumo que se suportou muito melhor a recessão económica sentida - e, por conseguinte, está a enfrentar uma procura constante e significativa de espaços por parte de lojistas importantes. Nesse contexto, estamos a preparar uma remodelação para modernizar o centro comercial, acomodar novas lojas e oferecer melhorias em termos de mix de lojas.

Os nossos planos de expansão para o Franca Shopping, por outro lado, estão em suspenso devido a circunstâncias opostas: as condições económicas adversas foram experienciadas com mais intensidade neste local. Enquanto continuamos a preparar-nos para a expansão do centro comercial, estamos também a discutir com terceiros usos alternativos de parte do terreno adquirido, como a possibilidade de desenvolver blocos de apartamentos ou um esquema de uso misto.

No Parque D. Pedro Shopping, o principal destino de retalho em Campinas, São Paulo, estamos a procurar parceiros para o desenvolvimento de um projeto de


400.000 m2 composto por duas torres de escritórios. Trata-se de um projeto a longo prazo que levará vários anos para a concessão de licenças e construção, e a Sonae Sierra Brasil irá gerir a fase de planeamento e os processos de pré-desenvolvimento, mas não pretende participar no investimento para além da retenção da propriedade do terreno.

Finalmente, no Uberlândia Shopping e no Passeio das Águas Shopping, dois centros regionais que foram concluídos pela Sonae Sierra Brasil em 2013, estamos a diligenciar no sentido de obter a aprovação de projetos para desenvolver nos terrenos adjacentes disponíveis. Na Uberlândia Shopping assinamos um contrato com um terceiro para o desenvolvimento de um hotel e de blocos de apartamentos, e em Goiânia, onde o Passeio das Águas Shopping está localizado, estamos a negociar um projeto do mesmo tipo. Em ambos os casos, a Sonae Sierra Brasil não pretende ter um papel ativo no desenvolvimento dos projetos.

Esta abordagem é diferente daquela que está a ser adotada na Europa: as características específicas do mercado de investimentos no Brasil significam que ainda não estamos confiantes sobre o nível de retorno que seríamos capazes de extrair como um prestador de serviços profissionais, apesar de considerarmos existir potencial no sector da prestação de serviços neste mercado a longo prazo.

Mais de 130 novos contratos assinados para prestação de serviços de desenvolvimento

À medida que o nosso modelo de negócio evolui para um modelo centrado no cliente, o contraste entre o mercado de serviços no Brasil e outras geografias onde operamos é mais evidente, com a velocidade com que nos estabelecemos como um parceiro de escolha.

Em 2016, ficámos muito satisfeitos pela assinatura de 136 novos contratos com um valor combinado de € 9,3 milhões de euros apenas para serviços de desenvolvimento. Além disso, continuamos a prestar serviços de acordo com os contratos existentes com um valor combinado de aproximadamente € 19 milhões. Estes contratos abrangem todas as áreas de serviços de desenvolvimento oferecidas pela Sonae Sierra, nomeadamente arquitetura, engenharia, gestão de projetos e gestão do desenvolvimento, bem como consultoria de gestão de desenvolvimento, que envolve a prestação de aconselhamento em todas as quatro áreas.

Tendo formalizado a criação da Sierra Development Services como um negócio autónomo no final de 2015, foram tomadas várias medidas importantes internamente em 2016 para reforçar as competências e aumentar a rentabilidade da nossa atividade de prestação de serviços profissionais. Em primeiro lugar, temos vindo a apoiar as nossas próprias equipas na melhoria das habilitações e das capacidades ao nível das equipas centrais e locais. Isso envolveu, por exemplo, o aumento da equipa prestadora de serviços de arquitetura através da contratação de arquitetos com experiência em projetos de uso misto. Em segundo lugar, continuamos a estabelecer parcerias com prestadores de serviços locais em regiões onde não dispomos de uma equipa local própria para aceder ao conhecimento local específico em que confiamos para entregar com êxito os nossos serviços. Também introduzimos novos procedimentos para agregar com maior rigor e eficiência a nossos serviços de desenvolvimento e de gestão de propriedades. Essas medidas ajudarão a entregar com mais rapidez e eficiência


o significativo volume de contratos já assinados e apoiarão fornecimento e entrega de novos projetos a clientes.

Posição consolidada no Norte de África e estratégica vitoriosa na Europa Central

Uma série de novos contratos de serviços de desenvolvimento conquistados em Marrocos, Argélia e Tunísia em 2016, juntamente com o crescimento do nosso negócio de gestão de propriedades na região, permitiu consolidar a nossa posição como prestador de serviços de centros comerciais no mercado norte-africano.

As vitórias na Argélia incluíram contratos para o projeto de arquitetura, engenharia e gestão da construção de dois grandes projetos e a adjudicação de um importante contrato de consultoria a um cliente tunisino.

Outro evento significativo em 2016 foi a adjudicação de um contrato de prestação de serviços de desenvolvimento para a remodelação e expansão do centro comercial Eurovea em Bratislava, na Eslováquia, para a J&T Real Estate. Esta vitória, combinada com uma série de projetos de menor dimensão na Alemanha, colocou-nos no caminho para expandir os nossos negócios na região da Europa Central, que acreditamos oferecer potencial para a Sonae Sierra ganhar quota de mercado no sector da prestação de serviços profissionais no setor de centros comerciais.

Experiência e abordagem criativa dão à Sonae Sierra vantagem competitiva

Apesar da concorrência no sector da prestação de serviços profissionais ser forte nos nossos mercados europeus, a amplitude da nossa oferta e a experiência, combinada com a nossa posição única como investidor e prestador de serviços, dão à Sonae Sierra uma vantagem competitiva. O nosso contrato para o projeto CityLife em Milão é um testemunho disso, já que envolve a prestação de um conjunto completo de serviços num projeto de difícil de uso misto e de requalificação.

Os clientes reconhecem que construímos um historial admirável em desenvolvimento, comercialização e gestão de propriedades no nosso próprio portfólio, e reconhecem a nossa Empresa como um consultor de confiança em todos os aspetos do ciclo de vida de uma propriedade de retalho imobiliário. As competências da Sonae Sierra em relação à sustentabilidade e à inovação no design de centros comerciais também estão fortemente inseridas na nossa oferta de serviços, que é apresentada a todos os clientes, fornecendo um outro ponto de diferenciação.


5.3 Perspetivas para o futuro

Identificamos quatro tendências como sendo as mais importantes para o sector até 2020 e seguintes. Tendo antecipado estas tendências há cinco anos atrás, adaptamos já o negócio principal e as estratégias de sustentabilidade para as gerir em nosso favor. À medida que as tendências se verificam, a nossa resposta continua também a evoluir, e estamos cada vez mais confiantes na nossa ambição em nos posicionarmos como a Empresa de prestação de serviços líder dedicada a servir as necessidades dos investidores no retalho imobiliário.

Com o aumento da internacionalização, o investimento no retalho imobiliário continuará a deslocar-se para os países emergentes e em crescimento

Apesar da recente volatilidade, as perspetivas de longo prazo para os mercados emergentes permanecem favoráveis. O retalho tem vindo a crescer significativamente nos mercados emergentes e a procura por parte de consumidores em países em desenvolvimento representam agora mais de metade das vendas globais de retalho. Em 2030, o poder de compra do E7 está definido para ultrapassar o G7. A expansão para os mercados "emergentes" e de "crescimento" apresenta uma oportunidade atraente para os Developers de centros comerciais, onde a ausência de stock facilita o potencial de criar novos destinos sob medida de alta qualidade para o retalhista moderno e para o consumidor. A expansão internacional acelerada dos grupos de retalho, especialmente no sector da moda, suporta ainda mais a procura por novos ativos. Apesar dos significativos desafios políticos e socioeconómicos presentes em algumas regiões, os retalhistas internacionais estão cada vez mais hábeis a navegar em mercados emergentes e a encontrar soluções para as dificuldades locais e estão a tomar uma abordagem de longo prazo para os investimentos. As devidas diligências e a gestão de riscos ajudam a garantir o sucesso.

A Sonae Sierra acompanha de perto a evolução dos mercados emergentes, da América do Sul à África Subsariana, da Europa Oriental e da Rússia ao Norte de África e ao Médio Oriente. Na América do Sul, espera-se que a Colômbia mantenha o crescimento estável do PIB e permaneça atraente para os novos retalhistas. O retalho moderno também está a ganhar terreno no Peru, onde a busca pelo governo de uma agenda de livre comércio abriu a economia para um maior investimento estrangeiro. Na Europa Oriental, o crescimento acelerado do PIB na Roménia, que apoia o aumento dos consumos dos consumidores, está a impulsionar o desenvolvimento de centros comerciais e as novas entradas no mercado de retalhistas internacionais. No Norte de África, a grande população da Argélia, a baixa saturação no comércio e o elevado PIB per capita em comparação com outros países da região, destacam o potencial de investimento neste mercado, embora os riscos económicos e políticos permaneçam. A vizinhança com Marrocos propõe mais segurança, um crescente investimento em infraestruturas e turismo, e uma população cada vez mais rica. A Turquia é um mercado importante que tem registado um crescimento significativo nos últimos anos e apresenta um forte potencial, mas está atualmente sobrecarregada por preocupações de segurança e por um conflito implacável em torno das suas fronteiras do Sudeste.

Conquistamos já uma sólida reputação como prestador de serviços de centros comerciais no norte de África e atuamos na Turquia, Rússia e Europa Oriental.


Continuaremos a prosseguir o crescimento do volume de prestação de serviços profissionais nesses mercados e consideraremos a entrada em novos mercados do Médio Oriente e da África, permanecendo atentos aos riscos políticos e económicos. Além disso, procuraremos outras oportunidades de investimento - numa base capital-light - na Roménia, Marrocos e na Colômbia. Procuraremos também avaliar o mercado e os riscos presentes noutros países fora da Europa Central e do Sul onde estamos ativos enquanto prestadores de serviços e onde surgem oportunidades de investimento. Como tal, pretendemos alcançar uma maior diversificação geográfica dentro do nosso portfólio e um maior equilíbrio entre mercados emergentes e maduros; novos desenvolvimentos e ativos em operação.

Cidades e localizações principais vão dominar o Mercado

Uma nova era de competição entre cidades está a mudar a geografia da propriedade comercial e tem implicações profundas para os formatos de imóveis, bens e oportunidades. A população urbana mundial está a crescer 50 milhões a cada ano, e com isso as megacidades emergentes estão a atrair gastos e investimentos significativos. Entre mercados maduros, a polarização já está em movimento, com o capital financeiro a concentrar-se nas cidades mundiais estabelecidas e em centros regionais. Embora estas cidades não estejam a crescer ao mesmo ritmo que as cidades emergentes, a urbanização continua a evoluir, com maior procura pela vida citadina, alimentando a renovação urbana em larga escala e a instalação de cada vez mais residenciais integradas, de retalho e de lazer. Dentro deste contexto, os ativos de retalho que oferecem a melhor experiência, acessibilidade e conveniência irão dominar as suas áreas de influência. Haverá oportunidades para revitalizar o stock existente enquanto a procura por qualidade permanece forte. Ao todo, os ativos de retalho terão de ser arquitetonicamente inspiradores e flexíveis, oferecerem o equilíbrio certo para fazer compras, usufruir de serviços e experiências, construir relações emocionais com os visitantes e estar incorporados no centro da sua comunidade para garantir um maior sucesso.

Manteremos o nosso foco em ativos dominantes em cidades-chave. Novos desenvolvimentos deste tipo são mais atraentes para os investidores, e a nossa própria gestão de investimentos ocupará posições em ativos emblemáticos com um horizonte de médio a longo prazo, enquanto o nosso negócio de novos Desenvolvimentos buscará oportunidades para novos projetos.

Nos mercados europeus mais saturados, o desenvolvimento de greenfield é limitado, mas o apetite dos investidores por novos produtos é forte. Tendo em conta a amplitude das competências de arquitetura, engenharia e investigação já presentes na nossa empresa, estamos a adaptar-nos com confiança à prestação de serviços de desenvolvimento para utilização mista, incluindo a aquisição de edifícios existentes para regeneração. Tendo em conta uma gama mais ampla de riscos para estes tipos de ativos, estamos a analisar novas oportunidades com muita atenção, com um foco particular em Itália e na Alemanha. Em Portugal e Espanha, continuaremos a concentrar-nos na expansão e remodelação dos nossos ativos existentes no âmbito da nossa atividade de gestão de ativos.


Uma nova geração de consumidores exigirá um espaço de retalho virtual e físico integrados e centros comerciais que proporcionem experiências e não apenas ‘compras’

Os consumidores modernos estão cada vez mais informados e digitalmente ativos. Além disso, exigem continuamente experiências originais, diversificadas e personalizadas em formatos que integram configurações digitais e físicas. Incentivado pela rápida expansão da tecnologia móvel, o comércio eletrónico continua a crescer e o crescente uso das redes sociais torna a excelência no atendimento ao cliente primordial. Os retalhistas estão a adaptar-se a ele de novas maneiras: oferecendo experiência digital e física integrada na loja; usando as redes sociais para se aproximar dos clientes; explorando redes wifi para melhorar o acompanhamento ao comportamento do consumidor e focando em drivers como personalização, exclusividade e bem-estar. Ao mesmo tempo, eles enfrentam o desafio de manter o seu modelo de negócios rentável e relevante num mercado cada vez mais segmentado e em rápido movimento.

A Sonae Sierra vê o centro comercial do futuro como uma estrutura viva com espaços comerciais multifacetados onde consumidores e marcas interagem num ecossistema digital. O centro comercial deve envolver-se com os visitantes em relações estreitas; deve oferecer uma experiência de alto nível, conveniente e amigável aproveitando a mais recente tecnologia para melhorar a acessibilidade, conforto e entretenimento. Deve abranger uma diversificada oferta de retalho e lazer para atender às preferências de estilo de vida dos consumidores individuais. Através de nosso compromisso com as partes interessadas e da exploração das últimas tendências e tecnologias, já estamos a criar novos conceitos e a desenvolver iniciativas para tornar a nossa visão uma realidade.

Futuramente, continuaremos a investir em inovação, explorando todos os tipos de iniciativas para melhorar a experiência do cliente - desde consultores de compras digitais até workshops práticos; restaurantes pop-up para áreas de jogos interativos para crianças - e vamos ativamente participar com os visitantes do centro comercial on-line e off-line para avaliar o seu feedback e sugestões.


Contas Consolidadas As demonstrações financeiras consolidam todas as empresas pelo método proporcional.

6.1 Contas consolidadas da Sonae Sierra

Demonstração de Resultados Consolidados

A Sonae Sierra alcançou um resultado líquido de €181,2 milhões em 2016 comparados com os €141,7 milhões de 2015, representando um aumento de 28%.

Em 2016, o Resultado Direto atingiu € 56.7m, o que representa uma diminuição de 7% em relação ao último ano. Isto ocorreu como esperado e devido ao impacto da nossa estratégia de reciclagem de capital. Numa base de portfolio comparável e excluindo o impacto das variações cambiais, o Resultado Líquido Direto aumentou 8% em consequência da melhoria dos resultados operacionais dos nossos ativos, do crescimento da prestação de serviços, das taxas de juro mais baixas e da gestão efetiva do risco financeiro.

O Lucro Líquido Indireto atingiu € 124.5m, em comparação com € 80.7m no mesmo período de 2015. A variação positiva do Resultado Líquido Indireto foi principalmente consequência da compressão das yields em Portugal e Espanha (que corresponde a 68% do valor criado) e à melhoria no desempenho operacional dos ativos da Península Ibérica e Brasil.

Balanço

O total do ativo da Empresa atingiu os €2,4 mil milhões dos quais €2 mil milhões correspondem a propriedades de investimento e €65 milhões correspondem a projetos em desenvolvimento.

O acréscimo de valor das propriedades de investimento decorrente da valorização das propriedades, da abertura do ParkLake e do efeito favorável na taxa de câmbio do Real foi parcialmente compensado pelas alienações parciais do Loop5, AlgarveShopping, Estação Viana, Luz del Tajo e a venda integral do Boavista Shopping e pela redução de participação no Sierra Portugal Fund.

As Propriedades em Desenvolvimento continuam a refletir a estratégia da empresa em se concentrar em novas oportunidades, com investimentos em Nuremberg, Designer Outlet Malaga, Cucuta, Zenata e na expansão do NorteShopping. A principal variação face a 2015 prende-se com o impacto da abertura do Parklake.

O capital próprio em 31 de dezembro de 2016 é superior ao de 31 de dezembro de 2015, em resultado do Lucro Líquido de 2016 e da taxa de câmbio favorável do Real (melhor que em 31 de Dezembro de 2015).

A dívida bancária diminuiu em relação a 31 de dezembro de 2015, devido principalmente às amortizações contratuais dos empréstimos, à variação cambial da dívida bancária brasileira e à alienação dos ativos acima referidos.


Demonstração de Resultados Consolidados(milhões de €)

Proveitos diretos dos investimentos 138,4 154,7 -11%Custos diretos dos investimentos 53,8 55,7 -3%EBIT das propriedades 84,7 99,0 -15%

Proveitos dos serviços 70,8 70,9 0%Custos diretos dos serviços 59,0 64,8 -9%EBIT dos serviços 11,9 6,1 96%

Custos financeiros líquidos 26,1 31,0 -16%Resultado direto antes de impostos 70,4 74,1 -5%Imposto sobre o rendimento 13,7 13,1 5%Resultado direto 56,7 61,0 -7%

Ganho realizado em propriedades 13,3 2,6 418%Valor criado nas propriedades 154,1 109,1 41%Recuperação de dívida & Imparidades 0,9 2,1 -58%

Impostos diferidos 43,8 33,1 32%Resultado indireto 124,5 80,7 54%Resultado líquido do exercício 181,2 141,7 28%

Balanço Consolidado(milhões de €)Propriedades de investimento 2.033,0 2.007,5 26Projetos em desenvolvimento e outros 65,0 120,3 -55Outros ativos 107,7 101,3 6Caixa e Bancos 200,5 70,6 130Total do ativo 2.406,3 2.299,7 107

Capital próprio 1.159,7 938,3 2210Empréstimos bancários 781,2 904,5 -123Impostos diferidos passivos 315,6 286,1 29Outros passivos 149,7 170,7 -21Total do passivo 1.246,6 1.361,3 -115Capital próprio e passivo 2.406,3 2.299,7 107

31 dez 16 31 dez 15 Var. (16 - 15)

2016 2015 % 16/15


6.2 Recursos Financeiros

Estrutura e maturidade da dívida

A Sonae Sierra manteve a sua estratégia conservadora de financiamento de longo prazo. A estrutura de capital da empresa é suportada pela maturidade da dívida de longo prazo, de 4,2 anos em média, 40% de cobertura da dívida e um perfil equilibrado de maturidade da dívida.

O gráfico seguinte ilustra a dívida da Sonae Sierra em 31 de dezembro de 2016.

Em 2016, a empresa foi capaz de refinanciar a dívida de 7 centros comerciais num valor total de € 560 milhões, o que reflete a confiança dos bancos nacionais e internacionais na gestão e solidez da Empresa e os seus ativos.

Custo da dívida

A Sonae Sierra continua a ter bom acesso aos mercados bancário e de capitais. O custo médio ponderado da dívida da Sonae Sierra em 31 de dezembro de 2016 situa-se nos 4,0%, 10 pontos base abaixo do final do ano anterior. Excluindo o Brasil, o custo médio ponderado da dívida é de 3,1%, o que leva a um rácio de cobertura de juros confortável.

3,2%

3,1%

2015 2016

Custo Médio da Dívida -Europa

39%

40%

2015 2016

% Dívida Coberta -Europa


Rácios Financeiros

A 31 de Dezembro de 2016 os indicadores financeiros da Empresa refletem a sua abordagem prudente e sólida.

A alavancagem dos ativos é de 27.8% que compara favoravelmente com 39.5% em dezembro de 2015, um decréscimo que resulta das amortizações contratuais dos empréstimos, da melhor situação de caixa e do aumento no valor dos ativos.

A cobertura de Juros em 2016 é de 3,2, acima da meta de 2 da Companhia, graças ao baixo custo médio da dívida. A redução em relação a 2015 é explicada por menores taxas de juros e pela nossa eficaz gestão de risco financeiro, com um EBIT/ Resultado Operacional Líquido estável.

Rácios 31 dez 16 31 dez 15

Alavancagem Ativos 27.8% 39.5%Taxa de Cobertura dos Juros 3.22 3.04Risco de Promoção 12.2% 15.6%

42.9% 43.9%41.5% 39.5%

27.8%

2012 2013 2014 2015 2016

Alavancagem Ativos


Net Asset Value

A Sonae Sierra mede a sua performance, com base nas variações do Net Asset Value (NAV) acrescido dos dividendos distribuídos. A Empresa calcula o NAV segundo a metodologia do INREV publicado em 2007 (European Association for Investors in Non-listed Real Estate Vehicles), uma associação da qual a Empresa é membro.

Com base nesta metodologia, o NAV da Sonae Sierra, em 31 de dezembro de 2016, foi de €1.418 milhões em comparação com €1.180 milhões em 31 de dezembro de 2015, um aumento de 20%. O NAV por ação atribuído à Empresa é de 43,62€ contra 36,29€ registado em 31 de dezembro de 2015. Este aumento resulta quase em exclusivo do Resultado Líquido de 2016, e do impacto favorável da apreciação do Real registada no período.

Net Asset Value (NAV)valores em milhões de €

NAV conforme Balanço Consolidado 1,159.7 938.3Justo valor das propriedades em desenvolvimento 3.3 3.0Impostos diferidos nas propriedades 251.2 238.1Goodwill relacionado com impostos diferidos -9.2 -14.3Despesas de transação 13.4 14.7

NAV 1,418.4 1,179.8

NAV por ação (€) 43.62 36.29

31 dez 16 31 dez 15

2528

2933

39

4653

4438 38

3632 31

34 36

44

0

10

20

30

40

50

60

€ 0€ 200€ 400€ 600€ 800

€ 1,000€ 1,200€ 1,400€ 1,600€ 1,800

NAV NAV per share


6.3 Investment Portfolio

A Gestão de Investimentos contribuiu com €147,7 milhões para os resultados consolidados da Sonae Sierra, um aumento de 16% quando comparado com 2015.

O Resultado Líiquído Direto deriva da operação dos centros comerciais que fazem parte do portfolio, incluindo os ativos que estão no Fundo Sierra, no Sierra Portugal Fund e no Iberia Coop Fund.

O EBIT é 11% inferior ao do ano anterior, explicado pela nossa estratégia de reciclagem de capital - redução de participação no Sierra Portugal Fund e alienações da Torre Ocidente e Zubiarte em 2015 e Loop5, AlgarveShopping, Estação Viana e Luz del Tajo em 2016, parcialmente compensadas pela abertura do ParkLake. Numa base comparável do portfolio, o EBIT aumentou 2,1%, acima da taxa de inflação da Zona Euro.

O melhor resultado financeiro é consequência de menores taxas de juros e da nossa gestão eficaz de riscos financeiros.

O Lucro Líquido Indireto decorre da alteração no valor das propriedades de investimento e a realização de mais-valias na alienação de investimentos. O Valor criado nas propriedades é de €21 milhões acima do ano passado, devido ao aumento no valor criado nas propriedades de investimento, em parte explicado pela compressão das taxas de capitalização em Portugal e pelo impacto positivo do desempenho operacional na Península Ibérica.

As Propriedades de Investimento diminuíram em €67 milhões quando comparado com 31 de dezembro de 2015. Esta diminuição é explicada pelas vendas do Loop5, AlgarveShopping, Estação Viana e Luz del Tajo, e pela redução de participação no Sierra Portugal Fund, que mais do que compensam o aumento das avaliações imobiliárias em 2016 e a abertura do ParkLake.

Os Empréstimos bancários diminuíram quando comparados com 31 de dezembro de 2015 devido às amortizações regulares de capital e às vendas supramencionadas.


Demonstração de Resultados(milhões de €)

Margem operacional dos espaços de retalho 71,9 81,7 -12%

Margem operacional de estacionamento 2,5 2,3 8%

Margem operacional de co-geração 0,1 0,0 193%

Resultado Operacional Líquido 74,5 84,1 -11%

Custos financeiros líquidos 19,8 24,2 -18%

Resultado direto antes de impostos 54,7 60,0 -9%

Imposto sobre rendimento 9,1 10,4 -13%

Resultado direto 45,6 49,5 -8%

Ganho realizado em propriedades 12,7 2,4 420%

Valor criado nas propriedades 123,9 102,5 21%

Impostos diferidos 34,5 27,6 25%

Resultado indireto 102,0 77,4 32%Resultado líquido do exercício 147,7 126,9 16%

Balanço Consolidado(milhões de €)Propriedades de investimento e outras 1.613,8 1.680,8 -67Caixa e aplicações 183,8 97,3 87

Total do ativo 1.797,6 1.778,1 19,6

Capital Investido pelos Acionistas 881,1 793,6 87Empréstimos bancários 594,1 729,1 -135Impostos diferidos passivos 242,7 232,0 11Outros passivos líquidos 79,8 23,3 56

Total do Passivo 1.797,6 1.778,1 19,6

31 dez 16 31 dez 15Var.

(16 - 15)

2016 2015 % 16/15


6.4 Developments

O negócio de novos desenvolvimentos contribuiu negativamente com €6,2 milhões para o Resultado Líquido Consolidado da Sonae Sierra.

Os serviços de promoção de projetos prestados são 14% inferiores aos do ano anterior, devido a um menor pipeline de projetos em curso. O Resultado Indireto em 2016 reflete o ganho com a abertura do ParkLake.

A diminuição das propriedades em desenvolvimento é explicada, principalmente, pela abertura do ParkLake em setembro de 2016.


Serviços de promoção prestados 4,1 4,8 -14%

Proveitos Operacionais 4,1 4,8 -14%

Custos operacionais 12,6 9,4 34%

Resultado Operacional Líquido -8,5 -4,6 -83%Custos financeiros líquidos 1,9 1,1 67%Imposto sobre o rendimento -1,8 -1,8 0%

Resultado direto -8,7 -4,0 -115%

Resultado Indirecto 19,7 -0,4 -Impostos diferidos 4,8 0,0 -

Resultado líquido do exercício 6,2 -4,5 238%

Balanço Consolidado(milhões de €)

Projetos em desenvolvimento 55,1 115,8 -61Caixa e aplicações 1,1 8,5 -7

Total do ativo 56,3 124,3 -68,0

Capital Investido pelos Acionistas 52,5 98,2 -46Empréstimos bancários 4,7 22,6 -18Impostos diferidos passivos 0,3 0,3 0Outros passivos líquidos -1,2 3,2 -4

Total do Passivo 56,3 124,3 -68,0

31 dez 16 31 dez 15Var.

(16 - 15)

2016 2015 % 16/15


6.5 Serviços

O negócio de serviços profissionais contribuiu com €9.5 milhões para o Resultado Líquido Consolidado da Sonae Sierra.

O Resultado Operacional Líquido aumentou 94% em resultado do esforço de redução dos custos operacionais. Os serviços prestados ao portfolio da Sonae Sierra e aos clientes externos mantiveram-se em linha com o ano anterior, apesar das já referidas alienações do portfolio da Sonae Sierra, com um aumento dos serviços de Gestão de Ativos compensando as reduções nos serviços de Gestão e Desenvolvimento de Propriedades.

6.6 Sonae Sierra Brasil

A Sonae Sierra Brasil contribuiu com €17,8 milhões para o lucro líquido consolidado da Sonae Sierra, um aumento de 23% em relação a 2015, devido principalmente ao maior valor criado nos ativos operacionais e ao ganho na alienação da Boavista Shopping.

A queda no EBIT é explicada pela variação adversa da taxa de câmbio (depreciação média do Real de 4,9% em relação ao Euro) e os efeitos da alienação do Boavista Shopping. Numa base de portfólio comparável e excluindo o impacto da variação cambial, o EBIT aumentou 1,7%, explicado principalmente pelo maior resultado operacional dos centros comerciais, consequência da qualidade dos nossos ativos e da abordagem de gestão.

O valor criado nas propriedades de investimento reflete o impacto positivo dos fluxos de caixa operacionais. As taxas de capitalização mantiveram-se estáveis apesar do desafiante enquadramento macroeconómico.

As propriedades de investimento atingiram €426 milhões em dezembro de 2016, um aumento de €95 milhões quando comparado com 31 de dezembro de 2015 explicado pela apreciação do Real Brasileiro (taxa de final de ano), e do aumento de valor dos ativos de operação.


Proveitos dos serviços de gestão de ativos 18,2 17,0 7%Proveitos dos serviços de gestão 45,4 46,0 -1%Proveitos dos serviços de promoção 7,2 7,8 -8%Proveitos Operacionais 70,8 70,9 0%Custos operacionais 59,0 64,8 -9%

Resultado Operacional Líquido 11,9 6,1 94%Custos financeiros líquidos -0,8 -0,4 -95%Imposto sobre o rendimento 3,1 1,8 79%Resultado líquido do exercício 9,5 4,8 100%

2016 2015 % 16/15



Margem operacional dos espaços de retalho 17,7 17,8 -1%Margem operacional de estacionamento 3,0 3,2 -6%Resultado operacional dos centros comerciais 20,7 21,0 -1%Proveitos de serviços prestados 4,4 5,1 -13%Custos de estrutura 6,5 6,6 0%Resultado Operacional Líquido 18,6 19,6 -5%Custos financeiros líquidos 5,2 6,2 -16%Resultado direto antes de impostos 13,4 13,4 0%Imposto sobre rendimento 3,3 2,9 15%

Resultado direto 10,2 10,6 -4%

Ganho realizado em propriedades 0,4 0,0 -Valor criado nas propriedades 11,6 9,2 26%Impostos diferidos 4,4 5,3 -17%

Resultado indireto 7,6 4,0 93%Resultado líquido do exercício 17,8 14,5 23%

Balanço Consolidado(milhões de €)Propriedades de investimento e outras 426,4 331,2 95Outros ativos 19,9 17,9 2Caixa e aplicações 24,5 20,3 4

Total do ativo 470,8 369,5 101

Capital próprio 310,1 237,3 73

Empréstimos bancários 62,3 57,9 4Impostos diferidos passivos 74,7 55,3 19Outros passivos 23,7 19,1 5

Capital próprio e passivo 470,8 369,5 101

Var. (16 - 15)

% 16/152016 2015

31 dez 16 31 dez 15


Governo da Sociedade As políticas de Governo da Sociedade foram adotadas de acordo com os modelos apoiados pelos seus Acionistas: a Sonae e a Grosvenor.

As políticas de Governo da Sociedade impõem determinados níveis de transparência, independência, regras de remuneração e políticas de sustentabilidade que contribuem para formar o próprio modelo de gestão, valores corporativos, estratégia de negócio, políticas de sustentabilidade e transparência na comunicação da Sonae Sierra.

O principal órgão social do grupo de empresas Sonae Sierra é a Assembleia Geral de Acionistas que, entre outras competências, nomeia a Mesa da Assembleia Geral, o Conselho Fiscal, a Comissão de Vencimentos e o Conselho de Administração da Empresa. O Conselho de Administração da Sonae Sierra é responsável pela estratégia, pelo plano de negócios a longo prazo e pelas áreas financeiras e de reporte financeiro. É constituído por onze membros, cinco dos quais fazem parte da Comissão Executiva.

O Conselho de Administração e a Comissão Executiva são apoiados por três Comités especializados: Investimentos, Finanças, Auditoria e Conformidade. A Comissão de Investimentos e a Comissão de Finanças são presididos pelo CEO. O Comité de Auditoria e Conformidade é presidido por uma pessoa independente e externa, escolhida pelo Conselho de Administração.

A Comissão Executiva é responsável pelas operações diárias de cada unidade de negócio. A Comissão Executiva reúne pelo menos uma vez por mês e pode convidar outros executivos da Empresa para participar de suas reuniões. A supervisão é assegurada pelo Comité de Supervisão, que inclui o CEO, o CFO e outros membros da Comissão Executiva para supervisionar as atividades de cada unidade de negócios. Um Fórum Executivo separado serve um papel transversal para promover a partilha de conhecimento através do nível corporativo e da unidade de negócios.

Operamos um grupo de trabalho de Gestão de Risco para servir como facilitador e promotor das melhores práticas de gestão de risco. Este grupo de trabalho reúne informação e reporta os riscos que a empresa está a suportar ou poderá vir a enfrentar no futuro e reporta, via CFO, à Auditoria e ao Comité de Auditoria e Conformidade.


7.1 Governo da Sociedadade Sustentável

Cada membro executivo do Conselho de Administração é responsável por determinados negócios ou áreas da empresa, bem como pelas prioridades de sustentabilidade de longo prazo da Sonae Sierra. A Comissão Diretiva de Sustentabilidade (SSC) é responsável pela supervisão do trabalho relacionado com as prioridades de sustentabilidade e gestão de risco.

O SSC reporta diretamente à Comissão Executiva e é presidida pelo CEO. A Comissão reúne-se regularmente para discutir as decisões que precisam ser tomadas coletivamente, informar a Comissão Executiva de quaisquer questões relacionadas com a implementação da Estratégia de Sustentabilidade e para fornecer a visão geral de Estratégia SHE da Empresa, incluindo a definição e revisão periódica da Política SHE e objetivos a longo prazo. Os funcionários de nível sénior que defendem cada uma das prioridades de sustentabilidade a longo prazo são obrigados a comunicar três vezes por ano para o SSC sobre os progressos realizados no que diz respeito à sua área de prioridade.

A Comissão de Sustentabilidade e Comunicação Corporativa apoia o CCD com a definição e implementação da estratégia de sustentabilidade. Ele também fornece aconselhamento e orientação relevantes quando necessário em torno da implementação de cada área de foco e é responsável pelo fortalecimento de relacionamentos com todas as partes interessadas ao liderar as nossas atividades de comprometimento relacionadas com a sustentabilidade.


De acordo com a nossa nova estratégia de sustentabilidade (que será lançada no início de 2017), o escritório continuará a fornecer apoio e orientação em torno da entrega de linhas de ação em cada área de foco do nosso portfolio próprio e escritórios corporativos, com responsabilidade específica por Pessoas Seguras e Resiliência dos Recursos. Em segundo lugar, facilitará a prestação de serviços comerciais de segurança de pessoas e recursos relacionados com a resiliência a clientes externos através de cada unidade de negócio.

A responsabilidade pela identificação e implementação das linhas de atuação do Future Fit Retail (cobrindo o portfolio de propriedade e os serviços ao cliente) dependerá do Departamento de Marketing e do Escritório de Inovação e a responsabilidade pela identificação e implementação de ações relevantes no âmbito do Conhecimento será alocada ao Departamento de Recursos Humanos. Cada departamento continuará a informar linhas de ação, indicadores de desempenho e progresso para o SSC para aprovação.

Esta nova estrutura de governo reflete a mudança na forma como a sustentabilidade será gerida no contexto do nosso modelo de negócios. Ele é projetado para facilitar a incorporação de sustentabilidade dentro das atividades de cada departamento para que linhas de ação e KPIs estejam mais alinhadas com os seus respetivos planos de negócios.

Os membros individuais do pessoal em todas as atividades e funções continuarão a ter a responsabilidade de implementar aspetos específicos da nossa estratégia de sustentabilidade. Os objetivos da SHE fazem parte de todas as avaliações de desempenho dos funcionários (incluindo as avaliações dos membros da Comissão Executiva) que se ligam através de regimes de remuneração e bónus.

7.2 Conduta Ética

O Código de Conduta da Sonae Sierra inclui um conjunto de princípios orientadores aplicados a tudo o que a Empresa faz e realça o empenho rumo ao sucesso numa abordagem de integridade, abertura e honestidade. O Código também promove as decisões éticas e responsáveis ao oferecer orientação para o modo de lidar com questões importantes como o suborno, a corrupção, a conformidade legal, a igualdade entre raças e géneros e os direitos humanos.

Enquanto o Comité Executivo é responsável pela gestão destas questões, a conduta ética é uma responsabilidade pessoal e todos os funcionários são responsabilizados pelo seu comportamento. O Provedor Sierra promove a conformidade com o Código de Conduta e encoraja o comportamento alinhado com os princípios éticos. O Provedor de Justiça é um facilitador ao qual todos os stakeholders podem apresentar as suas reclamações com a garantia de que serão processados, investigados e respondidos de forma atempada e sensível.


7.3 Sistema de Gestão de Segurança, Saúde e Ambiente

O Sistema Integrado de Gestão de Segurança, Saúde e Meio Ambiente (SHEMS) define a estrutura pela qual gerimos os nossos impactos e melhoramos o nosso desempenho em relação a pessoas seguras e ecoeficiência.

O SHEMS é baseado numa abordagem cíclica que envolve planeamento, implementação, monitorização e revisão para garantir a melhoria contínua e desde então tem sido atualizado para garantir maior alinhamento e cobertura com o nosso crescente foco em serviços profissionais e um modelo de negócios capital light. Baseia-se nas normas internacionais ISO 14001: 2004 e OHSAS 18001: 2007 e foi certificado pela Lloyds Quality Register Assurance de acordo com estas duas normas em 2011 e novamente em 2014.

A responsabilidade final pelos aspetos SHE reside no CEO e Comissão Executiva da Sonae Sierra. O Comité Diretivo de Sustentabilidade constitui o nível mais alto de tomada de decisão e estabelece a nossa Política de SHE, linhas de ação e objetivos, e monitoriza o progresso em relação a estes. O Escritório de Sustentabilidade e Comunicação Corporativa apoia ativamente o Comité Diretivo de Sustentabilidade, aconselha sobre a Política e padrões da SHE e supervisiona o envolvimento das partes interessadas em torno da nossa estratégia de sustentabilidade.

A responsabilidade pela implementação dos Padrões de Desenvolvimento de Segurança, Saúde e Meio Ambiente (SHEDS) e procedimentos SHEMS é atribuída a todos os líderes e gestores da organização, que também são obrigados a demonstrar um forte compromisso de gestão visível. Finalmente, a nossa organização como um todo é apoiada pela rede SHE, que fornece aconselhamento sobre gestão de SHE e questões técnicas.

O nosso SHEMS abrange todos os impactos de segurança, saúde e ambientais em todas as fases do nosso ciclo de negócios para ativos que a Sonae Sierra possui ou ocupa. À medida que a nossa estratégia de negócios evolui, estamos a adaptar a nossa estratégia de segurança, saúde e meio ambiente para refletir o grau de controlo que temos sobre os ativos que administramos. Em particular, quando não temos controlo direto, é importante para nós discutir com os nossos parceiros e clientes a melhor abordagem e estratégia para atender às suas necessidades e aos padrões do mercado local.

Desenvolvemos diretrizes para garantir que aplicamos uma abordagem consistente em todas as nossas atividades para lidar com todas as situações possíveis. Se os parceiros não concordarem em implementar o nosso SHEMS, implementaremos os procedimentos críticos de SHE e garantiremos o cumprimento das leis aplicáveis em matéria de saúde, segurança e meio ambiente.


O Capital Social e Ações Próprias da Sonae Sierra, SGPS, SA

Em 1999, ao abrigo do Art.º 17º do Decreto-Lei 343/98, a Sonae Sierra, SGPS, SA procedeu à redenominação em Euro das ações representativas do seu Capital Social, utilizando o método padrão. Assim, desde 1999 e após a incorporação no Capital Social de Reservas Livres no montante de PTE 15.194.250 (€ 75.788,60), o Capital Social da Empresa cifrava-se em € 187.125.000.

Em 29 de Novembro de 2003, foi deliberado em Assembleia Geral proceder à redução do capital social da Sonae Sierra, SGPS, SA de Euro 187.125.000 para Euro 162.244.860, mediante a extinção de 4.986.000 ações ao portador a adquirir aos acionistas por meio de reservas distribuíveis.

Na sequência desta deliberação, foram adquiridas pela Sonae Sierra, SGPS, SA 4.986.000 ações próprias aos seus acionistas, pelo montante total de Euro 150.028.740.

Após a aquisição destas ações próprias e deliberação favorável da Assembleia Geral, ocorrida em 4 de Dezembro de 2003, a Sonae Sierra SGPS,SA procedeu, através de escritura pública realizada em 17 de Dezembro de 2003, à redução do seu capital social, mediante a extinção daquelas ações próprias.

Tal como disposto na legislação comercial portuguesa foi constituída uma reserva especial sujeita ao regime de reserva legal, de montante equivalente ao valor nominal das ações extintas (Euro 24.880.140).

Em 31 de Dezembro de 2012, o capital social da Sonae Sierra, SGPS, SA era de € 162.244.860, sendo constituído por 32.514.000 ações ordinárias com o valor nominal de € 4,99 cada.

Proposta de dividendos do Conselho de Administração:

O Conselho de Administração da Sonae Sierra, SGPS, S.A. vai propor à Assembleia Geral da Empresa que o Resultado Líquido do Exercício seja aplicado em Resultados transitados.

O Conselho de Administração da Sonae Sierra, SGPS, S.A. vai propor, também, à Assembleia Geral da Empresa a distribuição de Outras Reservas no montante de € 74.782.200 um valor por ação de €2,30, o correspondente pagamento será diferido e a decidir pelos Acionistas e por recomendação do Conselho de Administração da Sonae Sierra, SGPS, S.A. numa data posterior.

Outra informação exigida por lei O Conselho de Administração declara que não deu qualquer tipo de autorização nos termos do artigo 391(1) do Código das Sociedades.


Notas Finais O Conselho de Administração gostaria de agradecer a todos os Clientes dos nossos Centros Comerciais, aos nossos Fornecedores, aos nossos Parceiros e a todos os Órgãos Oficiais que depositaram confiança em nós e colaboraram connosco ao longo do ano.

Gostaríamos ainda de agradecer aos nossos Auditores pela sua colaboração.

Finalmente, gostaríamos de deixar um agradecimento aos nossos Colaboradores pelo seu entusiasmo e compromisso durante um ano muito desafiante para todos nós.

Maia, 8 de março de 2017

Duarte Paulo Teixeira de Azevedo Presidente não executivo

Fernando Maria Guedes Machado Antunes Oliveira Presidente executivo

Ana Maria Guedes Antunes de Oliveira Vogal executivo

José Edmundo Medina Barroso de Figueiredo Vogal executivo

Ângelo Ribeirinho Paupério Vogal não executivo

Mark Robin Preston Vogal não executivo

João Eduardo Lupi Correia de Sampaio Vogal executivo

Neil Leslie Jones Vogal não executivo

José Manuel Baeta Tomás Vogal executivo

Nicholas Richard Scarles Vogal não executivo

Pedro José D’Hommée Caupers Vogal executivo

sonae sierra, s.g.p.s., s.a. and subsidiariesweb3.cmvm.pt/sdi/emitentes/docs/fsd543265.pdf · sonae...

Documents