ssb institutional mar2014_en
TRANSCRIPT
R: 102
G: 98
B: 0
R: 124
G: 106
B: 85
R: 164
G: 0
B: 70
R: 0
G: 90
B: 132
R: 187
G: 140
B: 10
R: 246
G: 137
B: 51
R: 212
G: 209
B: 15
R: 238
G: 43
B: 116
R: 98
G: 202
B: 227
Company Presentation March 2014
Disclaimer
► The material that follows is a presentation of general background information about Sonae Sierra Brasil S.A. and
its subsidiaries (the “Company”) as of the date of the presentation. It is information in summary form and does
not purport to be complete. It is not intended to be relied upon as advice to potential investors and does not form
the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed
to any other person. No representation or warranty, express or implied, is made concerning, and no reliance
should be placed on, the accuracy, fairness or completeness of the information presented herein.
► This presentation may contain statements that are forward-looking within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the U.S. Securities Exchange Act of
1934. Such forward-looking statements are only predictions and are not guarantees of future performance.
Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to
many risks, uncertainties and factors relating to the operations and business environments of the Company and its
subsidiaries that may cause the actual results of the Company to be materially different from any future results
expressed or implied in such forward-looking statements. No person has any responsibility to update any such
information.
► This presentation does not constitute an offer, or invitation, or solicitation or an offer, to subscribe for or purchase
any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or
commitment.
2
Parque D. Pedro Shopping
Shopping Metrópole Manauara Shopping
Uberlândia Shopping
Index
4
4 Company Fundamentals
9 Our Portfolio
28 Appendix - Market and Sector Fundamentals
12 Operational and Financial Indicators
22 Case Studies
• Leverage on the expertise, tenant relationships and market
recognition of our majority shareholders
• Controlling shareholders with significant experience in the sector
• 33.4% free float
• Roughly 90% of leases are fixed, providing significant
foreseeability
• Lowest common charge in the sector, as a result of malls’ formats
and Company’s efficiency
• Centralized back office structure
• Prudent leverage and cash management
• 10 shopping centers owned and managed (450k sqm total GLA)
• Occupancy rate of 97.2%(1)
• Best-in-class margins (Adj. EBITDA = 75.0% and Adj. FFO =
53.6%)
• Greenfield Expertise (84% of GLA)
• 2 third-party managed malls
5
Operating Expertise
Strong Shareholders Base
Competitive Advantages
• Parque D. Pedro Shopping is our main
asset, with 121 thousand sqm of GLA
(Gross Leaseble Area) is one of the
largest shopping malls in Brazil and
Latin America
• The mall is located in the city of
Campinas, in the São Paulo State, 100
km from the city of São Paulo
• Sonae Sierra Brasil holds a 51%
ownership interest in this mall
Sonae Sierra Brasil at a glance
One of the leading developers, owners and operators of top quality and regionally dominant
shopping centers in Brazil
(1) Excluding Uberlândia, Boulevard Londrina and Passeio das Águas shopping centers
24.6 24.6
25.1
79.9 80.8
102.7
108.4
128.4
150.0 148.5
200.0
203.7
208.5
231.3
353.7
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
21.0%
CAGR
20
12
20
13
Pátio Brasil
Expansion
PDP
Shopping
Boavista
Opening
Acquisition of an
additional 20%
ownership interestin Plaza Sul
Acquisition of 50% of
Sonae Sierra’s ownership interest in SSB Brasil by DDR
Campo Limpo
Opening
Manauara
Opening
PDP
Expansion
Campo Limpo and
Metrópole Expansion
Acquisition of an additional
17% ownership interest in Metrópole
Swap - Acquisition of
an additional 30.0%
ownership interest in Plaza Sul / Sale of 22.2% in Penha
Uberlândia
Opening
Londrina
Opening
Goiânia Opening
Acquisition of an
additonal ownershipinterest in Metrópole,
Plaza Sul and Tivoli
Acquisition of an
additonal 9.5% ownership interest in
Franca
Sale of 51.0%
ownership interest in Penha; 30.0% in Tivoli; 10.4% in Pátio Brasil
Sonae Sierra enters the Brazilian
shopping center market, creating a joint-venture with Enplanta Engenharia: Sonae Enplanta
Portfolio Timeline
6
8.0
15.6 15.2
17.8
10.7 12.3
SSB BRMalls Multiplan Iguatemi Aliansce GeneralShopping
176.0
138.2
173.0
99.6
124.8
48.5
SSB BR Malls Multiplan Aliansce Iguatemi GeneralShopping
Development Capabilities
7
48.6% of GLA is less
than 5 years old
Owned GLA developed in the last 3 years Average Age of Malls (owned GLA weighted)
SSB has been the leading developer and owns the newest portfolio among listed peers
Ownership Structure
Free Float Sierra Brazil 1
B.V.
66.65% 33.35%
50.0%
• Over 45 years of history
• One of the largest developers and operators of shopping centers in US
• 12 million of sqm in total GLA
• NYSE listed and Sox Compliant
• Market value of US$5.9 billion(1)
50.0%
• Over 21 years of history
• One of the largest developers and operators of shopping centers in Europe
• Over 2 million of sqm in total GLA
• NAV: €1.0 billion(1)
• The largest business group of Portugal, with operations in over 40 countries
• Operations in retail, properties, shopping centers and telecommunications
• Market value: €2.6 billion(1)
• British company with over 300 years of history in the properties market
• Over 1,000 properties under management with a total value of £10.9 billion
• Properties in retail, commercial and residential segments
Sonae Sierra Brasil S.A.
50.0% 50.0%
On March 10, 2014 DDR announced that it reached an agreement to sell its investment in Sierra Brazil 1 B.V.
and PDP 1 B.V. for US$ 344 million to Alexander Otto and his affiliates
Note: (1) As of March 2014 Source: Reuters, Sonae Sierra
8
Index
9
4 Company Fundamentals
9 Our Portfolio
28 Appendix - Market and Sector Fundamentals
12 Operational and Financial Indicators
22 Case Studies
Portfolio
10
Our portfolio is composed of 10 operating shopping malls, totaling 2,150 stores, 450 thousand sqm of total GLA and 354
thousand sqm of owned GLA. We recently opened Passeio das Águas Shopping, our 10th mall, which added 78 thousand
sqm of owned GLA to the portfolio. The Company also manages 2 third party malls totaling 341 stores and 52 thousand
sqm of GLA.
3
1
5
6 2 4
8
10
9
7
1. Parque D. Pedro Shopping
• Campinas (SP)
• GLA tsd sqm: 121.3
• Stores: 400
2. Boavista Shopping
• São Paulo (SP)
• GLA tsd sqm: 15.9
• Stores: 146
3. Franca Shopping
• Franca (SP)
• GLA tsd sqm: 18.5
• Stores: 106
5. Shopping Plaza Sul
• São Paulo (SP)
• GLA tsd sqm: 23.4
• Stores: 221
6. Shopping Campo Limpo
• São Paulo (SP)
• GLA tsd sqm: 22.3
• Stores: 149
4. Shopping Metrópole
• São Bernardo do Campo (SP)
• GLA tsd sqm: 30.0
• Stores: 191
7. Manauara Shopping
• Manaus (AM)
• GLA tsd sqm: 46.5
• Stores: 233
9. Boulevard Londrina Shopping
• Londrina (PR)
• GLA tsd sqm: 48.4
• Stores: 221
10. Passeio das Águas Shopping
• Goiânia (GO)
• GLA tsd sqm: 77.9
• Stores: 259
8. Uberlândia Shopping
• Uberlândia (MG)
• GLA tsd sqm: 45.8
• Stores: 215
12. Tivoli Shopping
• Sta. Bárbara d’Oeste (SP)
• GLA tsd sqm: 22.1
• Stores: 146
11
Malls in operation
Third party managed malls
11. Shopping Penha
• São Paulo (SP)
• GLA tsd sqm: 29.7
• Stores: 195
12
Controlling interests in most of shopping centers
11
Sonae Sierra Brasil‟s average ownership stake is 78.6% in its 10 operating properties.
Note: (1) Sonae Sierra and DDR hold an additional 25.9% indirect ownership in Parque D. Pedro through another structure.
Rationale
Ability to expand and adapt to market trends
Controls the management
services of 100% of owned malls
Strategic control of the malls
Shopping Center City State GLA
(„000 sqm) % SSB Management
Parque D. Pedro(1) Campinas SP 121.3 51.0%
Metrópole São Bernardo
do Campo SP 30.0 100.0%
Boavista São Paulo SP 15.9 100.0%
Franca Franca SP 18.6 76.9%
Plaza Sul São Paulo SP 23.4 60.0%
Campo Limpo São Paulo SP 22.3 20.0%
Manauara Manaus AM 46.5 100.0%
Uberlândia Uberlândia MG 45.8 100.0%
Boulevard Londrina Londrina PR 48.4 88.6%
Passeio das Águas Goiânia GO 77.9 100.0%
Average 78.6%
Third party malls under management
Penha São Paulo SP 29.7
Tivoli Santa Bárbara
d’Oeste SP 22.1
Index
12
4 Company Fundamentals
9 Our Portfolio
28 Appendix - Market and Sector Fundamentals
12 Operational and Financial Indicators
22 Case Studies
Shopping Center Sales
13 Data as of 4Q13
988 1,117 1,285
3,101 3,614
4,013
4Q11 4Q12 4Q13 2011 2012 2013
Shopping Center Tenant Sales (R$ million)
15.1%
11.0%
733 868 971
2,114 2,498
2,727
3Q11 3Q12 3Q13 9M11 9M12 9M13
Shopping Center Tenant Sales (R$ million)
11.9%
9.2%
Shopping Center Tenant Sales
(R$ thousand)Shopping Metrópole 108,196 105,027 3.0% 353,921 346,283 2.2%
Franca Shopping 60,760 55,317 9.8% 197,776 175,368 12.8%
Parque D. Pedro Shopping 406,005 375,936 8.0% 1,312,755 1,286,028 2.1%
Boavista Shopping 78,238 73,783 6.0% 264,358 252,545 4.7%
Shopping Plaza Sul 136,013 125,074 8.7% 424,250 399,127 6.3%
Shopping Campo Limpo 104,226 95,698 8.9% 328,403 298,189 10.1%
Manauara Shopping(1) 223,804 222,818 0.4% 728,451 673,699 8.1%
Uberlândia Shopping 75,457 63,030 19.7% 249,805 183,237 36.3%
Boulevard Londrina Shopping 55,927 - N/A 116,382 - N/A
Passeio das Águas Shopping 36,614 - N/A 36,614 - N/A
Total 1,285,241 1,116,684 15.1% 4,012,716 3,614,477 11.0%
4Q13 4Q12 Δ 2013 2012 Δ
14
Same Store Sales (SSS)
Same Store Rent (SSR)
Operating Performance
Data as of 4Q13
9.1%9.8% 9.8%
7.3%7.9%
9.8%9.2%
7.9%
6.4% 6.1%
4.4%
7.0%7.9%
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
9.5%
11.1%
12.7% 13.0% 12.7%12.1%
13.1%
9.7%
11.7% 11.8%10.8%
12.8%
10.8%
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Operating Performance
15 Data as of 4Q13
98.8% 98.5% 97.4% 97.7% 97.4% 97.2%94.7% 95.1%
93.7%
97.2%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 4Q13 w/oNew Malls*
Occupancy (% GLA)Occupancy (% GLA) Occupancy Cost (%)
2.92%
2.11%
2.61%
2.86%2.75%
2.38%
3.08%2.96%
3.09%2.91%
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13 w/o
Uberlândia
and Londrina
Delinquency Rate (25 days)
8.7%
9.1% 9.2% 9.2% 9.1%9.3% 9.3% 9.4% 9.3%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Occupancy Cost (%)
2.11%
2.61%
2.86%2.75%
2.38%
3.08%2.96%
3.09% 3.05%
2.61%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 4Q13 w/oNew Malls*
Delinquency Rate (25 days)
* Uberlândia, Londrina and Passeio das Águas Shopping Centers
* Uberlândia, Londrina and Passeio das Águas Shopping Centers
Revenue Breakdown
16 Data as of 4Q13
77%
1%7%
9%
5%
1%
Gross Revenue Breakdown in the quarter
Rent
Rent contract straight-lining
Service revenue
Parking revenue
Key Money
Other revenue
Revenues (R$ million) 4Q13 4Q12 Δ 2013 2012 Δ
Rent 71.4 63.6 12.2% 241.5 221.8 8.9%
Rent contract straight-lining (0.5) (0.5) -2.9% 2.0 2.6 -23.5%
Service revenue 5.8 5.0 16.5% 20.2 17.8 13.7%
Parking revenue 7.9 7.2 9.1% 27.9 26.5 5.5%
Key Money 4.7 3.0 56.1% 19.0 12.1 57.4%
Other revenue 1.8 0.7 166.8% 5.2 2.8 86.7%
Total Gross Revenue 91.1 79.0 15.3% 315.8 283.4 11.4%
78%
6%
9%
5%
2%
Gross Revenue Breakdown in the quarter
Rent
Service revenue
Parking revenue
Key Money
Other revenue
77%
13%
10% Fixed Rent Revenue
Turnover Rent
Revenue
Kiosks andMerchandising
Costs and Expenses
17 Data as of 4Q13
Cost and Expenses (R$ million)
11.6 18.3
43.2
58.7
4.1
5.1
20.0
22.3
4Q12 4Q13 2012 2013
Cost and Expenses (R$ million)
Cost of rentals and services Operating expenses
57.5%
36.0%25.2%
11.4%
Costs and Expenses (R$ million) 4Q13 4Q12 Δ 2013 2012 Δ
Depreciation and amortization 0.6 0.5 13.2% 2.3 1.8 30.2%
Personnel 8.0 7.1 12.2% 31.7 28.7 10.5%
External services 2.6 2.8 -4.8% 11.4 10.5 8.9%
Occupancy expense (vacant stores) 5.7 1.8 215.1% 14.5 6.1 137.3%
Cost of contractual agreements with
tenants2.6 0.7 269.2% 6.3 2.2 183.9%
Provision for bad debts 0.1 - N/A 2.8 2.4 16.3%
Rent 0.6 0.5 15.5% 2.8 2.6 7.2%
Other 3.2 2.3 38.0% 9.2 8.9 3.2%
Total 23.4 15.7 49.1% 81.0 63.2 28.2%
Financial Performance
18 Data as of 4Q13
57.4 57.8
199.3 206.9
81.3%73.8% 77.6% 75.0%
-1050.0%
-850.0%
-650.0%
-450.0%
-250.0%
-50.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
4Q12 4Q13 2012 2013
3.8%
0.6%
40.4 38.3
155.6 147.9
57.2%
48.9%
60.6%
53.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0.0
50.0
100.0
150.0
200.0
250.0
4Q12 4Q13 2012 2013
-5.3%
-5.0%
69.5 75.0
251.2 268.5
4Q12 4Q13 2012 2013
7.9%
6.9%
Adjusted EBITDA (R$ million) and Margin
Adjusted FFO (R$ million) and Margin
Net Revenue (R$ million) NOI (R$ million)
70.7 78.3
256.9275.8
4Q12 4Q13 2012 2013
Net Revenue (R$ million)
10.8%
7.4%
Financial Performance (51% PDP)
19 Data as of 4Q13
27.6 24.2
110.5 97.9
47.8%
37.9%
53.2%
43.8%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0.0
50.0
100.0
150.0
200.0
4Q12 4Q13 2012 2013
-12.3%
-11.4%
57.7 63.9
207.9 223.7
4Q12 4Q13 2012 2013
Net Revenue (R$ million)
10.7%
7.6%
44.7 44.0
154.9 157.8
77.5%68.8% 74.5% 70.5%
-98.0%
-48.0%
2.0%
52.0%
-20.0
30.0
80.0
130.0
180.0
230.0
280.0
4Q12 4Q13 2012 2013
Adjusted EBITDA(R$ million) and
Margin
1.8%
-1.7%
Adjusted EBITDA (R$ million) and Margin
Adjusted FFO (R$ million) and Margin
Net Revenue (R$ million) Net Income (R$ million)
28.1
74.6
185.5226.0
4Q12 4Q13 2012 2013
Net Income (R$ million)
21.8%
165.2%
Cash Position and Leverage
20
2.3x
Net Debt/EBITDA
Contracted Debt FinancingCommitted
Amount (R$ MM)
Term
(years)Interest Rate(1)
Balance as of
12/31/13
(R$ million)
Working Capital 20 5 CDI + 1.66% 8
Working Capital 27 6 CDI + 1.78% 14
Manauara Shopping 112 12 8.50% 120
Metrópole Shopping - Expansion I 53 8 TR + 9.30% 43
Uberlândia Shopping 81 15 TR + 9.70% 73
Boulevard Londrina Shopping 120 15 TR + 9.70% 118
Passeio das Águas Shopping 200 12 TR + 9.70% 197
Debentures - 1st series 96 5 CDI + 0.96% 98
Debentures - 2nd series(2)205 7 IPCA + 6.25% 236
Total 913 905
Weighted Average 10.2 10.4%
(1) Considering TR at 0.19% p.a., CDI at 9.8% p.a. and IPCA at 5.91% as of December 31, 2013
(2) The Company contracted in August 2013 a derivative instrument (swap) of R$ 54.5 million at a rate of CDI + 1.24%
Fixed13%
CDI13%
TR48%
IPCA26%
Debt Profile
828.6
480.2
76.1
424.4
Total Debt Cash and cash
equivalents
Net Debt
Net Financial Debt (R$ million)
Short Term
Long Term
904.7
886.5
419.2
467.3
Total Debt Cash and cash
equivalents
Net Debt
Net Financial Debt (R$ million)
Fixed
14%
CDI
13%
TR
47%
IPCA
26%
Debt Profile
24.6 74.5 66.6 109.8 106.1
504.8
2013 2014 2015 2016 2017 2018 and
beyond
Financial Debt Amortization (R$ million)
Does not consider debt related to asset acquisitions
76.1 65.7 109.0 105.2
170.7
377.9
2014 2015 2016 2017 2018 2019 and
beyond
Financial Debt Amortization (R$ million)
Does not include debt related to asset acquisitions
Data on 12/31/13
Leverage Strategy
Financing through bank loans up to 50% of the total cost for each project
Debt indexation linked to Sonae Sierra Brasil’s assets
Amortization schedule highly manageable
No exposure to foreign currencies
Management of cash and financial leverage indexes (restricted to 3.25 of Net Debt/ EBITDA in 2014)
21
Share Performance and Trading Multiples
22
Share Price Performance Trading Multiples
• Maximum: R$ 34.34 in October 2012
• The stock is trading below R$5,000/GLA
• Gross investments for Passeio das Águas Shopping ~ R$ 6,200/GLA
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
SSBR3 Price (R$)
Price
(R$)
Market Cap
(R$ MM)
EV (R$
MM)
P/FFO
14
EV/EBITDA
14 EV/GLA
BR Malls 17.96 8,209 12,516 12.3x 9.6x 13,172
Multiplan 46.10 8,212 10,064 14.6x 11.3x 18,854
Iguatemi 21.38 3,776 4,385 14.4x 10.7x 15,641
Aliansce 17.66 2,808 4,504 12.8x 11.0x 11,262
Average: 13.5x 10.7x 14,732
SSB 15.66 1,197 1,677 7.1x 6.0x 4,738
SSBR3 discount to peers: 47% 44% 68%
Price as of 02/28/14; EV and FFO estimates based on Bloomberg consensus
Source: Companies reports; Bloomberg
Index
23
4 Company Fundamentals
9 Our Portfolio
28 Appendix - Market and Sector Fundamentals
12 Operational and Financial Indicators
22 Case Studies
Case Study – Parque D. Pedro Refurbishment and Innovation
24
Refurbishment of movie theater, adding 2 VIPs screens and the first IMAX theater in the region
Refurbishment of aisle currently dedicated to furniture stores and fitness center
Coverage of Alameda Parque D. Pedro (PDP first expansion) New dining area and new entrance
13,757 sqm area leased to a convention center operator
Even though Parque D. Pedro is one of the most prominent shopping centers in Brazil, we continue to refurbish and renovate the mall to perpetuate its dominant position in the region
Case Study – Boulevard Londrina New Development
Shopping Center Data
City Londrina
State Paraná
Opening May 2013
GLA (Ꞌ000 sqm) 48.4
SSB stake 88.6%
Number of stores 221
Anchor stores 10
Cinema screens 7
Parking spaces 2,400
Occupancy rate 88.6%
Boulevard Londrina Shopping has a privileged location, in the city‟s downtown and is part of an imposing mixed-use project
Boulevard Londrina Shopping gathers a tenant mix of diversified stores, with high appeal to the public
25
Case Study – Passeio das Águas New Development
Shopping Center Data
City Goiânia
State Goiás
Opening October 2013
GLA (Ꞌ000 sqm) 77.9
SSB stake 100%
Number of stores 259
Anchor stores 17
Cinema screens 7
Parking spaces 4,000
Occupancy rate 83.4%
Passeio das Águas Shopping is the second largest shopping of Sonae Sierra Brasil and the largest mall in Brazil‟s Mid-West region
Passeio das Águas Shopping has a diversified tenant mix, with renowned brands
26
Case Study – Franca Shopping Expansion
27
Site Location
Internal Rendering External Rendering
45,500 sqm area; 11,700 sqm of GLA of expansion
After announcing the acquisition of a 45,500 sqm land plot adjacent to the Franca Shopping aiming an expansion of 11,700 sqm of GLA, the Company officially launched the project in a ceremony that took place in Franca on March 18th, comprising the expansion above-mentioned plus a full revitalization in the existing mall.
Expansion Features
Opening 1H15
Expansion GLA (Ꞌ000 sqm) 11.7
Satellite stores 63
Anchor stores 6
Gross Investment (R$ MM) 96.7
Revitalization Features
Façade painting with “lake, garden and birds” elements and graphite decoration
Lake area will be covered and will have new stores
Movie theater: modernization and 2 new screens to be built-up
New ceiling and covering of open air areas for the air-conditioning system
New furniture and internal signs
Expansion and Revitalization
Case Study – Plaza Sul Value creation through M&A and turnaround
Shopping Center Highlights
SSB ownership increasing from 20% (2005 – acquisition) to 60% (2012)
Occupancy rate improvement: from 80% (2005) to 99% (2013)
Asset appreciation of 3.5x its purchase price (R$ 96 million) since 2005
Tenant Mix improvement with renowned tenants: Starbucks, Samsung, Lacoste, MyStore
Performance Highlights(1)
Sales (% Y-o-Y) 8.7%
SSR (sqm/month) 11.6%
Occupancy Rate (%GLA) 99.1%
(1) Data as at 4Q13
New Façade Old Façade
28
Index
29
4 Company Fundamentals
9 Our Portfolio
28 Appendix - Market and Sector Fundamentals
12 Operational and Financial Indicators
22 Case Studies
Fast growing middle class
30
Over 40 million people have moved upwards into the middle class, while middle class disposable income has tripled
Increasing middle class Middle class: disposable income(1) (R$/month)
Consumer credit still underpenetrated in Brazil
Source: Cetelem “O Observador 2012”
51%
24%
34%
54%
22% 15%
2005 2011
Population: 182 mm Population: 191 mm
+16 mm people
+40 mm people
A+B
C
D+E
Up
per c
lass
Mid
dle
cla
ss
Lo
wer c
lass
- 48 mm people
R$ 30 billion increase in monthly disposable income
Note: (1) Income available for spending and savings Source: Cetelem “O Observador 2012”, Euromonitor and Raymond James
Sonae Sierra Brasil is strategically positioned to capture the middle class consumption growth, as it entails over 80% of its
target audience
122
363
2005 2011
25%26%
16%15%
11%
6%
4%
28%
26%
16%
14%
10% 10%
4%
Chile USA Spain Germany Argentina Brazil Mexico
2006 2011
31.735.9
41.645.5
50.058.0
64.674.0
91.0
108.0
121.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CAGR 2002-2012: 14.3%
Source: ABRASCE; SSB
5.5 5.66.2 6.3
7.58.3 8.6
9.19.5
10.3
11.2
0 .0
2 .0
4 .0
6 .0
8 .0
1 0 .0
1 2 .0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CAGR 2002-2012: 7.4%
Source: ABRASCE; SSB
303 317 326 335351 363 376
392408
430457
0
5 0
1 0 0
1 5 0
2 0 0
2 5 0
3 0 0
3 5 0
4 0 0
4 5 0
5 0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CAGR 2002-2012: 4.2%
Source: ABRASCE; SSB
-
500
1,000
1,500
2,000
2,500
USA
Canada
Euro
pe
Chile
Mexic
o
Colo
mbia
Peru
Bra
zil
DF
SP
PR
AM
GO
MG
GLA/1,000 inhabitants (2011)
Brazilian shopping center industry fundamentals
31
The Brazilian mall industry had a significant growth in recent years but it is still significantly
underpenetrated when compared to other countries
Number of shopping centers in Brazil GLA (million sqm)
Low shopping center market penetration
Source: ABRASCE, IBGE, BTG, SSB.
Brazil Average: 58
Shopping Center Sales (R$ billion)
Brazilian shopping center industry fundamentals (cont‟d)
According to Abrasce, 40 greenfield projects were announced for 2014 in Brazil, which, if
concluded, should add more than 1.2 million sqm of GLA
Source: Abrasce (January 2014) 32
North • Malls: 5 • GLA: 159k sqm
Mid-West • Malls: 2 • GLA: 50k sqm
Northeast • Malls: 7 • GLA: 209k sqm
Southeast • Malls: 22 • GLA: 669k sqm
South • Malls: 4 • GLA: 93k sqm
Brazil • Malls: 40 • GLA: 1,180k sqm
Thank you!
Investor Relations Website: www.sonaesierrabrasil.com.br/ir Email: [email protected] Phone: +55 (11) 3371 3692