2013 IN REVIEW Economic, Environmental and Social Performance

PORTUGAL GREECE LISBOA ATHENS PORTO ITALY ALGERIA MILAN KOUBA LUXEMBOURG BRAZIL LUXEMBOURG SÃO PAULO MOROCCO CASABLANCA ROMANIA COLOMBIA BUCHAREST CALI SPAIN CROATIA MADRID ZAGREB THE NETHERLANDS GERMANY HOOFDDORP DÜSSELDORF TURKEY ISTANBUL

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Creating value from… UNIQUE SHOPPING EXPERIENCES

www.sonaesierra.com ­

SonAE SIERRA

WE hAvE lonG RECoGnISEd ThAT EnvIRonmEnTAl And SoCIAl pERFoRmAnCE AFFECTS ouR FInAnCIAl RESulTS, And WE bElIEvE ThAT ouR lonG-TERm buSInESS SuCCESS IS dEpEndEnT on All ThREE dImEnSIonS: EConomIC, EnvIRonmEnTAl And SoCIAl.

Hofgarten Solingen, Germany ..... About tHiS report This report provides a summary overview of Sonae Sierra’s economic, environmental and social strategy and the Company’s performance in 2013. We have also published a fully integrated Economic, Environmental and Social Report, available on our website which draws heavily on the International Integrated Reporting Council’s (IIRC) Framework on Integrated Reporting and the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines. As such, it provides our stakeholders with a more robust and detailed account of our current strategy and performance in 2013, and further demonstrates the alignment between our core business and sustainability goals.

Contents 01 Who We Are 02 CEo’s Statement 04 The Year at a Glance 06 our Company 10 our business model and Strategy 12 The Wider Context 14 operational performance 22 Consolidated Accounts 28 Future outlook 30 board members and Executives

www.sonaesierra.com ­

2013 In Review .01

..... WHo We Are

Sonae Sierra is a specialist at the cutting edge of shopping centre development, ownership, management and the delivery of professional services in geographies as diverse as Europe, South America, North Africa and Asia.

passionate about bringing innovation and excitement to the shopping industry since 1989, Sonae Sierra has been interpreting trends and spearheading a movement that has defined the shopping centres of the future.

Through our integrated strategy of investment, development and property management, we have developed a unique understanding of the business and markets we operate in, and we have earned more international awards than any other company in our sector.

We have pioneered the integration of sustainability principles into the shopping centre business and we are already reaping the benefits of this forward-thinking approach.

passeio das Águas Shopping, brazil

boulevard Londrina Shopping, brazil

AlgarveShopping, portugal .02 SonAE SIERRA

..... Ceo’S StAtement A conversation with Fernando Guedes oliveira

2013 SAW uS ConSiStentLy outperForm tHe retAiL SALeS index in moSt oF tHe europeAn CountrieS WHere We operAte; Continue to expAnd our buSineSS tHrouGH tHe inAuGurAtion oF neW SHoppinG CentreS And SeCure neW mAndAteS For our SHoppinG Centre proFeSSionAL ServiCeS buSineSS.

Fernando Guedes oliveira Chief Executive officer

Q: How would you describe the business’s performance over the last • deploy our capital recycling strategy to fund new developments and twelve months? Has the year turned out as you expected? reduce our exposure to investment properties, with a shift from a mature market concentration to a greater weight of emerging A: overall, Sonae Sierra’s business exceeded expectations for 2013. our markets (including brazil). net Result for the full calendar year was €3.6 million; we delivered a direct profit of €57.6 million and presented an EbITdA of €113.5 million. • Reinforce our professional services business. 2013 saw us consistently outperform the retail sales index in most of the • pursue new development opportunities with a capital-light approach European countries where we operate; continue to expand our business in the use of equity. through the inauguration of new shopping centres and secure new mandates for our shopping centre professional services business. Whilst In 2013 we concluded the sale of three assets – one in Spain and two in our direct results show a decline in comparison with 2012, this is due to Italy – to institutional investors, enabling us to perpetuate our capital the sale of assets during the last two years in line with our capital recycling strategy. Two more significant achievements of our investment recycling strategy. on a like-for-like basis, our direct profit and EbITdA business were the extension of the Sierra Fund for an additional five year would have in fact remained stable. period, and the acquisition of a further 50% stake in CascaiShopping, through a majority-owned subsidiary, a prime asset in Greater lisbon. In Europe, we can identify a clear split in terms of the economic conditions across the year. In the first five months of 2013, we saw decline in sales and We inaugurated three new shopping centres – one in Germany and two expansion in yields as forecast. however, from may onwards we witnessed in brazil. In Germany, hofgarten Solingen is already exceeding expected an uplift in consumer confidence and since october we have achieved performance in terms of footfall and sales. In brazil, our expansion into month-on-month sales growth across the majority of our portfolio, two new states in the interior and south of the country – Goiás and combined with a stabilising of yields, particularly in portugal and Spain. paraná – has significantly added to the GlA of our portfolio in this market. We feel confident that the momentum will continue to pick up as we move boulevard londrina Shopping and passeio das Águas Shopping are into 2014 and we have built a strong platform to take advantage of market reference points in terms of high-quality design and best practice in recovery as soon as it materialises. In brazil, on the other hand, the economy safety, health and environment in these regions. brazil offers strong is still expanding in spite of recent deceleration: we saw an increase above potential for new projects as well as expansions/refurbishments to 5% in tenant sales and we were able to deliver strong rental growth. existing assets, and in this context we also launched a significant expansion project at Franca Shopping in São paulo. In terms of new development, Q: What progress did Sonae Sierra make towards its objectives for we commenced works on a new flagship shopping centre in bucharest, 2013 and beyond? Romania in a joint venture partnership with Caelum development. A: our business strategy remains the same and is validated by the our professional services business continues to bear fruit, with over changes we saw during 2013. We continue to: 50 new contracts signed in 2013 and the successful launch of Sierra Reval, a partnership created to deliver shopping centre services in • maintain and enhance our shopping centre specialism. Turkey. At the start of 2014 we also finalised an important joint venture partnership with Citic Capital to provide management and leasing services in China. 2013 In Review .03

Q: What have been the most significant challenges and how have you Q: What are your priorities for 2014, and how do you see the overcome these? year unfolding? A: Without a doubt the adverse economic conditions in Southern Europe A: overall, I am cautiously optimistic about the year ahead. continue to present the greatest challenges for our business. Scarcity of Anticipating gradual stabilisation in Southern European markets, we will debt, weak retail sales and fluctuating yields continue to compromise our continue to pursue a dynamic management approach with a focus on ability to proceed with new development, maximise rental income and improving occupancy, rental income and tenant sales. In Iberia, where the improve our direct results. market has bottomed out, we expect values to improve slightly during however, our teams have deployed considerable initiative and efforts to 2014 at least for prime assets, and for more investors to return to the maintain our high occupancy rates – an average 94.4% across our global market. Whilst we do not currently have plans to acquire or develop portfolio and 97.4% in portugal, one of the countries most affected by any more assets in this market, we will proceed with expansion and the Eurozone crisis – and to strengthen the appeal of our assets as refurbishment works when the conditions are right to enhance the cutting-edge shopping and leisure destinations for consumers. on this value of our existing portfolio. front, I am particularly proud of the work we have done to support our We believe that the German market will remain the strongest within the tenants’ businesses; driving down service charges through cost-cutting Eurozone, with growing investor appetite for both primary and secondary measures (including eco-efficiency); introducing exciting new retail assets. Consequently, we will seek opportunities for new developments concepts into our malls and exploiting digital media platforms to enhance and acquisitions in this country, as well as in Italy where we are seeing sales activation. patent signs of recovery. Furthermore, the successful disposal of the three assets mentioned The main focus of our strategy in brazil will be on development; we will previously enables us to release capital to fund our new investment and/or proceed with the construction of a new development pipeline and exploit development activity in the context of a constrained debt market. The opportunities for redevelopment on key existing assets through impressive growth of our professional services business also bolsters our expansion and/or refurbishment projects. We will take an opportunistic net income and opens up opportunities for our business to expand further approach to acquisitions, targeting shopping centres which offer strong into emerging markets which hold greater promise for retail growth. potential for redevelopment when the market is favourable, and we will pursue a strategy of capital recycling through the sale of non-core assets. Q: What do you consider to be Sonae Sierra’s greatest achievements of 2013 and how will these affect the business going forwards? Importantly, we will increase our presence in emerging markets; both by entering new markets as a professional services provider and growing A: besides the specific events highlighted above, I would emphasise above our market share in the countries where we are already present, with a all our strong capital position with a low loan-to-value ratio and a solid particular focus on north Africa and Turkey. our development business interest cover. Indeed, all the efforts we have made over the last five will also seek opportunities for direct investment, in Colombia and years to contain our costs, sustain our rental income through first-class morocco, always in accordance with our capital light approach. operational management and expand into new geographies through our professional services’ business put us in an optimal position to take We will continue to innovate in our approach to business; ensuring that advantage of the improved economic circumstances. our centres offer the most cutting-edge experiences for consumers and that we deliver first-class solutions to our clients. Equally we will proceed Another key achievement for our business has been, in my view, the way with our focus on ensuring business resilience through our four long-term in which we have embraced changing consumer habits through intelligent priorities, tackling global environmental and social challenges in a way use of digital media. Whereas e-commerce was initially seen as a that supports ongoing value creation for our stakeholders. significant threat, the success of our promoFans® promotions platform proves that we can use the internet to our advantage. With other digital With a robust strategy in place, we commence the new Year in a strong projects already underway, we expect to reap further rewards from the position to exploit new opportunities and deliver solid performance across skilful use of digital technology in the future. all areas of our business. Taking a wider future perspective, I am particularly proud of the work we have commenced in 2013 to support the long-term resilience of our business, as well as our ongoing achievements in terms of safety, health and environmental performance. Whilst improvements in our management of energy, water and waste enabled us to reduce our environmental impact and avoid costs of €18.2 million in 2013, our research into solutions for effective resource resilience (such as water reuse and renewable energy systems) is vital for sustaining our assets’ value in the long term. likewise, our efforts to support our tenants and to have a positive impact on local economies has already given rise to new, unique retail concepts – such as the Flash Stores and Coop stores – which are fostering entrepreneurship and enhancing our offer to consumers. .04 SonAE SIERRA

..... tHe yeAr At A GLAnCe

Key Activities

..... INVEStMENt

SierrA Fund SierrA Fund SoLd reACHed AGreement AnnounCed tHe inAuGurAted And Cbre iberiAn vALeCenter And WitH roCKSprinG expAnSion And €4.5 miLLion vALue Added Fund Airone (botH in itALy) property inveStment reFurbiSHment oF expAnSion oF SoLd pArQue to bLACKStone reAL mAnAGerS to ACQuire FrAnCA SHoppinG ALGArveSHoppinG prinCipAdo (SpAin) eStAte pArtnerS For 50% StAKe in (brAZiL), WitH And CommenCed For €141.5 miLLion €144.5 miLLion CASCAiSHoppinG €31 miLLion inveStment €5 miLLion (portuGAL) AddinG 11,000m2 GLA reFurbiSHment oF norteSHoppinG (portuGAL)

..... DEVELOPMENt

inAuGurAted inAuGurAted CommenCed tHe deveLopment AnnounCed our FirSt HoFGArten SoLinGen bouLevArd LondrinA oF pArKLAKe in romAniA, A deveLopment in moroCCo, A (GermAny) SHoppinG And Joint venture WitH CAeLum Joint venture WitH mArJAne, pASSeio dAS ÁGuAS deveLopment AL FuttAim And SoCiÉtÉ SHoppinG (brAZiL) d’AmÉnAGement de ZenAtA (Groupe CdG)

..... MANAgEMENt

LAunCHed ‘diGitAL ConSoLidAted promoFAnS® LAunCHed Coop Store impLemented rAinWAter LounGe’ piLot proJeCt pLAtForm ACHievinG 360,000 proJeCt to FoSter HArveStinG or WAter reuSe in HoFGArten reGiStered uSerS entrepreneurSHip And tHe SyStemS At Six SHoppinG SoLinGen – tHe SinCe LAunCH emerGenCe oF neW brAndS CentreS (34% oF our FirSt oF itS And ConCeptS in CentreS noW HAve Kind in our our SHoppinG tHeSe SyStemS) portFoLio 3 CentreS 3

..... PROFESSIONAL SERVICES

SiGned 59 neW ServiCe entered tHe turKiSH mArKet ConSoLidAted ACtivity in Joint venture pArtnerSHip ContrACtS ACroSS europe, WitH tHe CreAtion oF ServiCe moroCCo, SiGninG Seven Formed WitH CitiC CApitAL nortH AFriCA And ASiA provider CompAny SierrA neW ServiCeS ContrACtS to provide property WitH A Combined vALue revAL WitH CLientS mAnAGement ServiCeS oF €12.2 miLLion in CHinA 2013 In Review .05

Awards and Certifications

AWArded tHe retAiL Honoured For tHe FiFtH obtAined Four neW iSo 14001 And riSinG StArS AWArd ConSeCutive yeAr by tHe iSo 14001 And Five iSo 18001 CERTIFICATIonS At tHe internAtionAL euromoney mAGAZine reAL neW oHSAS 18001 AChIEvEd retAiL property eStAte AWArdS WinninG reCeived Four AWArdS At CertiFiCAtionS At mArKet (mApiC) beSt deveLoper tHe iCSC SoLAL mArKetinG tHree operAtionAL AWArdS 2013 overALL And beSt AWArdS – tHe HiGHeSt SHoppinG CentreS And tWo For our ACtivity retAiL deveLoper number For A europeAn ConStruCtion proJeCtS in brAZiL in portuGAL CompAny

Key performance indicators

€5,638m €3.6m €113.5m omv of owned Assets Consolidated net profit EbITdA (€ million) (€ million) (€ million)

2013 5,638 2013 3.6 2013 113.5

2012 5,789 2012 -45.9 2012 116.3

2011 6,320 2011 9.7 2011 112.8

2010 6,481 2010 8.7 2010 123.4

94.4% €1,000m 1,896m2 Average occupancy Index Real Estate nAv GlA owned in operating centres (% by GlA, across our owned portfolio) (€ million) (000’s m2)

2013 94.4 2013 1,000 2013 1,896

2012 96.1 2012 1,050 2012 1,893

2011 96.7 2011 1,173 2011 1,924

2010 96.4 2010 1,251 2010 2,017

2,303m2 4.6 32.2 GlA under management Tenant satisfaction Index (scale of 1 Average hours of training per employee (000’s m2) (‘not satisfied’) to 6 (‘very satisfied’))

2013 2,303 2013 4.6 2013 32.2

2012 2,261 2012 4.5 2012 35.8

2011 2,234 2011 4.6 2011 48.9

2010 2,220 2010 4.6 2010 38.1

444kWh/m2 59% 4.3 Electricity efficiency (excluding tenants) Total waste recycled as a proportion lost Workday Case Accidents Frequency of our owned portfolio of waste produced Rate (lWCAFR) on construction sites (kWh/m2 mall and toilet area) (% by weight, across our owned portfolio)

2013 444 2013 59 2013 4.3

2012 479 2012 55 2012 5.0

2011 514 2011 53 2011 17.2

2010 514 2010 51 2010 13.0 .06 SonAE SIERRA

..... our CompAny

Sonae Sierra is passionate about creating unique shopping experiences. Incorporated in Portugal in 1989, Sonae SgPS (Portugal) and Limited (United Kingdom) each control 50% of the Company.

We have an integrated business which encompasses owning, our proactive approach to business ensures that we have the developing and managing shopping centres as well as the provision necessary capital required to maintain and market our shopping of professional services in geographies as diverse as Europe, South centres, attract new and innovative tenants and to increase our America, north Africa and Asia. As a pioneer in the creation of themed centres’ asset values. This strategy has allowed us to develop unique shopping centres, Sonae Sierra remains a leader in the development know-how and has earned us international recognition for the of unique concepts for exceptional shopping centres that offer great development of innovative products and delivery of high quality experiences and turn customers into fans. property management services. This in turn has enabled us to develop our activity as a professional service provider.

our vision is to be the leading international shopping centre specialist. our mission is to provide ultimate shopping experiences to customers and to create outstanding value to shareholders, investors, tenants, communities and staff, while contributing to sustainable development. our vision and mission are underpinned by a set of core values and principles regarding our business culture, responsibility towards our staff, the environment, local communities where we operate and independence from political power.

Key Facts

AS on 31 deCember 2013

SHoppinG CentreS oWned mAnAGement And/or LeASinG totAL mAnAGed GLA oF under deveLopment

47 81 2.3 million m2 6 projects And An omv oF €5.6 biLLion SHoppinG CentreS ACroSS inCLudinG Four For 13 CountrieS proFeSSionAL ServiCeS CLientS, And Four neW proJeCtS in tHe pipeLine

rent reCeived At oWned viSitS mAde to mAnAGed tenAnt SALeS At mAnAGed direCt empLoyeeS SHoppinG CentreS SHoppinG CentreS SHoppinG CentreS €391.8 405.6 €5,158 1,144 miLLion miLLion miLLion 2013 In Review .07

organisational Structure

Sonae Sierra is a for four separate Sonae Sierra businesses: Sierra Investments, Sierra developments, Sierra management, and Sonae Sierra brasil. our businesses also act as professional service providers in Europe, South America, north Africa and Asia. All our businesses are supported by Corporate Services which includes: Finance, legal, Taxes, human Resources, Communication, Sustainability and our European Shared Services Centre.

SierrA inveStmentS SierrA deveLopmentS SierrA mAnAGement SonAe SierrA brASiL

Sierra investments owns the Sierra developments constantly Sierra management takes on the Sonae Sierra brasil is listed in the Company’s shopping centres and seeks opportunities to develop management of shopping centres bm&F bovESpA (the brazilian Stock is responsible for our investment new shopping centres, from the on behalf of Sonae Sierra and its Exchange) with a 33% free float, the activities. Sierra Investments holds conceptual architectural design co-owners, with a focus on maximising remainder is a 50/50 partnership 50.1% of the Sierra Fund and phase through to construction long-term value. Furthermore, the between Sonae Sierra and ddR, 47.5% of the Sierra portugal Fund, and engineering management business is responsible for leasing the one of the uSA’s largest real estate thus maintaining its position as (including expansion and retail premises within each shopping investment trusts (REITs) focused co-owner and manager of the Funds’ refurbishment projects). leveraging centre, including those in projects on the shopping centre sector. Sonae underlying assets. Applying the on its track record and know-how, that are still in the development stage. Sierra brasil’s business operates extensive experience it has acquired, Sierra developments also provides Sierra management also provides autonomously and is focused on this business also acts as a provider professional services in the shopping professional services in shopping investing, developing and managing of professional services. centre development area. centre management and leasing. shopping centres in brazil.

Centro Colombo, portugal

Hofgarten Solingen, Germany

boulevard Londrina Shopping, brazil .08 SonAE SIERRA

..... our CompAny (ConTInuEd) Where We operate Our strong partnership policy, both with international investors and local partners, provides the financial backing and market intelligence necessary to successfully develop new business in new geographies.

GermAny

romAniA SpAin AZerbAiJAn

portuGAL

CoLombiA GreeCe turKey itALy

moroCCo ALGeriA CHinA

brAZiL

operations in 4 continents and 13 countries

passeio das Águas Shopping, brazil

Loop5, Germany 2013 In Review .09

ALGERIA PORTUGAL 0P Cévital Group 0P Estevão Neves 0C Immobis 0P Bensaúde Group 0C Prombati 0P Sonae RP 0P Sonae MC C ..... 0P & 0 CGD OUR CURRENT PARTNERSHIPS AZERBAIJAN 0C Millenium BCP C 0 Baghlan Group 0C Montepio Geral AND CLIENTS 0C GIL C The Edge Group BRAZIL 0 0P Marco Zero 0P Família Sé SPAIN When it comes to shopping centres, we aim to be the C 0 Tivoli EP 0P Eroski Group C partner of choice. Our business, quite simply, would 0 Credit Suisse HG 0P Iberdrola Inmobiliaria not be what it is today without our partners (0P ) 0C Grupo Clásica Urbana and service clients (0C ). With their backing, we can CHINA ensure we have financial strength, the ability to 0P & 0C Citic Capital Real Estate SWITZERLAND quickly gain an in-depth knowledge of markets 0P Partners Group and create new opportunities. COLOMBIA 0P Central Control THE NETHERLANDS In return, we offer our partners and professional 0P ING Developments services clients the chance to benefit from our 0P APG Investments FINLAND many years of experience in this field, to capitalise 0P MAB Development 0P KEVA on exciting retail markets and ultimately enjoy 0P & 0C Redevco strong results. 0P ILMARINEN

TURKEY 0P Reval 0P AEW Europe 0C Banio 0P CNP Assurance 0C Endülüs Gayrimenkul 0P CDC 0C Krem Turizm 0P Foncière Euris

UAE GERMANY 0P & 0C Al Futtaim 0P Deka Immobilien 0P & 0C Union Investment 0C Aachener Grundvermögen UNITED KINGDOM 0C BHG Gewerb 0P Grosvenor Fund Management 0C Commerzbank 0P Rockspring 0P Schroders Investment Management WE AIM TO CREATE MORE GREECE 0C Scottish Widows LONG-TERM RELATIONSHIPS 0P Charagionis Group 0C Doughty Hanson WITH LIKE MINDED ORGANISATIONS WHO SEE IRELAND USA P US AS THEIR SHOPPING 0 Caelum Development 0P AIG CENTRE PARTNER OF CHOICE. 0P TIAA-CREF P DDR ITALY 0 P CBRE Global Investors 0P Coimpredil 0 0C Faenza Erre 0C Edilnaonis 0C Immobiliare Helios

MOROCCO 0C Marjane 0C Foncière Chellah 0C Facenor 0P & 0C Groupe CDG .10 SonAE SIERRA

..... our buSineSS modeL And StrAteGy

With 25 years of experience, Sonae Sierra creates value for stakeholders throughout the entire lifecycle of each asset.

The combination of our know-how, our commitment to innovation and our long-term approach have created an integrated business model that embraces shopping centre development, ownership and management as well as professional services.

our business model

We Fund g Weg Find We provide effective investment solutions that With extensive knowledge of the shopping centre business, g utilise capital while maximising returns. we perform market, cost, community and environmental studies to identify sustainable retail opportunities.

g We ACQuire We deSiGn We acquire the completed assets, many of which PRE We create innovative schemes and provide professional we co-own through investment funds, offering DEVELOPMENt shopping centre design services to offer exceptional retail international investors sustainable financial rewards experiences and bring vibrancy to the local area whilst from dynamic, high quality retail assets. sustaining environmental resources and ensuring high safety standards.

g

ASSEt INtEgRAtED

MANAgEMENt APPROACH DEVELOPMENt g

We mAnAGe We deveLop

We manage our assets in a way that maximises Combining know-how and experience, weg bring returns for our professional services clients, together exceptional construction and marketing tenants and investors whilst also delivering value PROPERtY support to develop and commercialise for communities and visitors. At the same time, MANAgEMENt sustainable buildings covering both our owned we promote the efficient use of natural assets and as a professional service provider. resources and the safety of all people

in and around our properties.

g

g

g g 2013 In Review .11

Our Strategy Our business strategy comprises four axes to allow our business to expand its market presence, deliver sustainable financial returns and create added value for stakeholders through our business model.

Shopping Centre Specialist Capital allocation We aim to maximise the value captured along We aim to increase our exposure to .01 the complete value chain of the shopping centre .02 developments. This will be achieved through business. For this, we will keep an integrated a combination of acquiring exposure to new approach, covering development, investment development opportunities and reducing our and management of shopping centres. We define exposure to investment properties. ourselves by our sector focus and not by the We will also shift from a mature market amount of financial capital committed to concentration to a greater weight towards properties. That means, in some properties: emerging markets. Our market priorities will be:

l We may hold a controlling position, l Brazil. by ourselves or with partners.

l Emerging markets with significant shopping l We may hold minority positions associated centre potential, that can deliver high returns with management services. in the long term, and where we may enter via

l We may render services to third party the provision of professional services. owners without any financial capital l Germany, Italy and Romania where the invested by the Company. objective is to reduce financial capital In all cases, we will strive for the creation of employed and adopt a developer approach. innovative shopping concepts that will adjust Portugal and Spain will continue to be core stable and evolve in order to be the preferred choice markets for the Company but with no prospects of the customer. for new developments. For Greece, the objective is to realise value in an orderly way.

Professional Services Capital intelligence We will continue to reinforce a professional We will reinforce a capital-light approach in the .03 services component focused on development, .04 use of equity. For this, we will use partnerships leasing and property management services. with the purpose of minimising the financial This enables us to optimise the resources of the capital invested in a given operation allowing us Company under market fluctuations and improve to share risk, maximise returns through service know-how on markets, partners and projects. delivery and improve know-how. With increasing focus from investors and retailers on prime assets that dominate their catchment areas, market dominance is one of the more relevant variables when assessing shopping centre strength and medium-term potential. We will aim to maintain the financial capacity to commit to ambitious and relevant shopping centre projects, namely in terms of accessing funds in debt markets. For this, we will aim to keep a relevant balance sheet size, associated with prudent financial ratios.

Our business strategy is supported by our sustainability strategy. In addition to our ongoing Safe People & Eco-Efficiency and Risk Management commitments, we have identified four long-term focus areas which address the principal sustainability risks facing our operations in order to safeguard our continued capacity to do business: l Prosperous Retailers – Partnering with tenants to make their business more resilient. l Sustainable Lifestyles – Using our reach and public influence to encourage our visitors to make the right choices. l Leveraging Knowledge – Empowering our employees by building their skills and knowledge and raising the standard of education at a collective level in the communities where we operate. l Resource Resilience – Trying to be energy independent, using innovation and technology to rethink our processes and reusing water on our sites. .12 SonAE SIERRA

..... tHe Wider Context

the outstanding quality of our international portfolio, combined with our relentless pursuit of long-term strategic goals, continues to buffer us against the worst of the economic downturn and position us strongly for the recovery.

Another challenging year, but reasons for optimism bolstered by cautious optimism at year end, it is important to remind ourselves that 2013 was still a year of recession for many countries in Europe. Economic sentiment in 2013 has undoubtedly improved since 2012, but public debt is still significant and unemployment rates remain high in Southern European countries. Austerity measures continue to suppress consumer appetite for non-food goods in these markets, and the threat of higher taxation levels is causing financial anxiety for citizens. nevertheless, portugal and Spain formally exited the recession in Q3 and Q4 respectively. With Gdp finally on the increase in these countries, and debt availability improving, we are witnessing a gradual revival of investor appetite for retail investments in the region. When viewed alongside the strength of Germany’s economy, and continuing rates of robust growth in brazil, there is no doubt that prospects for our business are looking more encouraging at year end than they did at the start.

Hofgarten Solingen, Centro vasco da Gama, portugal Germany

boulevard Londrina Shopping, brazil 2013 In Review .13

WHiLSt We expeCt tHAt tHe europeAn reCovery WiLL be A SLoW And CAutiouS Steady growth in brazil, and evidence of ‘green shoots’ one, We nevertHeLeSS emerging in Southern europe expeCt to See improvementS In brazil we have continued to benefit from robust economic growth, in 2014, And Some reCovery albeit at a slightly slower pace than in the previous few years. Gdp oF open mArKet vALueS. grew by 2.3% in 2013, driven by income growth and low unemployment, and the retail industry continued to show strong performance overall. In portugal and Spain, which together represent 55% of the open market value of our global portfolio, Gdp is predicted to grow by 0.6% and 0.2% respectively during 2014. despite the upturn, scarcity of debt remains a fundamental constraint to our development pipeline in these markets. nonetheless we were able to proceed with substantial renovation and expansion works at two of our centres, and to increase our ownership stake in another. We continue to be optimistic about economic conditions and growth opportunities in other European markets. In Germany, we expect to Within the rest of Europe, excluding Greece, we enjoyed stronger see continuing investor interest in retail assets and Gdp growth close market conditions and built on our existing operations to further grow to 2% per year. In Italy, Gdp is forecast to increase gradually by 0.7%. the business in Germany (hofgarten Solingen) and Romania (parklake). Whilst the Romanian economy has been impacted upon by the weak Eurozone, expectations are for around 1% growth in 2014. Strong financial position In brazil, the market remains strong and growth is set to continue in our loan-to-value ratio (maintained below our target of 45%) and debt 2014, albeit at a more moderate pace. The FIFA World Cup and the maturity demonstrates our conservative long-term funding strategy. Rio 2016™ olympic and paralympic Games are infusing great confidence We find ourselves in a strong financial position for the recovery, and into the market and potential investors. We will continue to focus on this is supported by the efforts we have made to maintain occupancy developing new projects and target acquisitions with expansion and rates and cut costs in our corporate operations. renovation potential, and actively recycle capital from the sale of Sustaining high occupancy rates continues to be a key priority for assets we consider to be non-core. Sonae Sierra: we believe it is better to support viable tenants that have The success of our professional services business in 2013 illustrates been adversely affected by the current economic cycle than to lose the significant growth potential we see continuing into 2014. We are them. over the past few years, we have made considerable efforts to optimistic that our recently formed joint venture partnerships in maintain the vibrancy of our shopping centres, as we are convinced Turkey and China will convert into revenue growth and expect to realise that below a certain level of occupancy, the viability of a centre is further opportunities as we enter into more emerging markets in the harder to maintain and more costly to restore. Active management coming year. initiatives taken to improve tenants’ resilience include temporary rent discounts; financial advice; marketing support and a drive to maintain Growing investor momentum supports our focus on low service charges through increased operational efficiency – including proactive eco-efficiency measures. sustainable real estate Within our own back office, we have undertaken some restructuring From our experience, investors are increasingly aware of the importance efforts and tightened up management processes and procedures, that sustainability features represent when making investment decisions, where practical, in order to maximise productivity. and the sustainability agenda has continued to gain momentum in the global real estate industry. While the translation of such features into a value premium has yet to be seen, what is becoming more evident Slow but steady recovery from now, with sights firmly is that investors will tend to penalise, or not even invest in, properties set on growth lacking such features because they are at greater risk of obsolescence. on the whole, the world economy is showing signs of strengthening. In terms of global real estate investment, virtually all major markets new goals to deliver long-term value for our business were recording sales volume growth at the end of 2013 and liquidity In 2013, we launched our revised Sustainability Strategy, with a was improving across a range of markets and sectors, indicating a continued commitment to effective Risk management and Safe people positive outlook for the year ahead. new opportunities appear to be and Eco-Efficiency, and a focus on our four long-term themes. We have opening up for the financing of real estate, especially in prime operating proceeded immediately with actions on those themes which present shopping centres, with interest from insurance companies and sovereign the most pressing issues for our business. wealth funds as well as core and long-term institutional investors. We have initiated several projects to support entrepreneurship in our We anticipate that the gradual improvements witnessed in the final shopping centres within the scope of the ‘prosperous Retailers’ theme months of 2013 in portugal and Spain will be carried forward into 2014. of our strategy. on the theme of ‘Resource Resilience’, we undertook Whilst we expect that the European recovery will be a slow and research into new technology and conducted feasibility studies with cautious one, we nevertheless expect to see improvements in 2014, a view to supporting the long-term resilience of our shopping centre and some recovery of open market values. portfolio in the context of costlier and scarcer energy and water resources. With growing consumer confidence sending positive signals to the In particular, we can highlight our decision to proceed with our research market, we foresee that investor appetite will again increase in Southern into the roll-out of water reuse and rainwater harvesting systems Europe in 2014, and that yields will continue to stabilise, particularly for across our portfolio. prime assets which could lead more investors to turn to secondary stock. .14 SonAE SIERRA

..... operAtionAL perFormAnCe

In 2013, we maintained our efforts to improve operational efficiency, recycle capital and increase our professional services to third parties. We also successfully inaugurated three shopping centres, Hofgarten Solingen (germany) and Boulevard Londrina Shopping and Passeio das Águas Shopping (Brazil).

Successful development activity leads market expansion Waste and safety are two performance measures that we monitor closely during construction works (including With Southern Europe still bearing the brunt of the economic refurbishments and expansions). In 2013 we achieved a waste crisis, our development activity in 2013 focused on Germany recycling rate of at least 95%, exceeding our target of 85%. and brazil where we have continued to deliver positive results We aim to anticipate and prevent all safety risks to onsite in recent years: workers and use a number of indicators to measure our progress.

l may 2013 saw the inauguration of boulevard londrina The Safe practice Index (SpI) measures adherence to Sonae Shopping in paraná state in southern brazil. developed as a Sierra safety and health requirements and in 2013 the average joint venture with marco Zero - Shopping Empreendimentos score across all construction sites was 94%. We also attained Imobiliários, boulevard londrina Shopping represents an a lost Workday Case Accidents Frequency Rate (lWCAFR) investment of €122 million and is our first shopping centre of 4.3, a 13.5% fall from 2012 and exceeding our target of 12. in the region. With 48,400m2 of GlA, the centre brings new Incorporating low environmental impact technologies during national and international brands to a catchment area of the design phase is cheaper and more effective than more than 800,000 people and received 3.3 million visits interventions made post-development, and with this in mind by the end of the year. we have been actively investigating how the latest available

l In october 2013, passeio das Águas Shopping opened technologies for on-site energy generation, water re-use and its doors in the city of Goiânia (Goiás state) in brazil. waste mitigation can be introduced on our new projects to Representing an investment of €150 million, passeio das enhance their operational cost efficiency and profitability, Águas Shopping is the largest shopping centre in the ultimately benefitting Sonae Sierra, our tenants and increasing Central-Western region of brazil, comprising 77,900m2 visitor comfort. of GlA. The centre offers international and local brands to our two inaugurations in brazil significantly added to our the 1.6 million inhabitants of Goiânia and received 1.1 million GlA under management and establish our presence in two visits in its first two months, making it an important shopping important areas where we aim to become the dominant player. and leisure destination for the region.

l Also in october, we inaugurated hofgarten Solingen which was pursuing growth opportunities in mature and developed as a 50/50 joint venture with mAb development emerging markets in the city of Solingen, Germany. The centre represents an investment of €120 million and its 25,100m2 of GlA While many projects in our development pipeline remain on strengthens our presence in a European market which hold, we nonetheless continue to seek opportunities that will demonstrates strong retail potential in spite of the impacts deliver the right level of return, both in mature markets and of the economic downturn on the Eurozone. With emerging markets. approximately 1.4 million visits made to the centre by In Europe, we started the development of parklake in the end of 2013, we are enthusiastic about hofgarten bucharest, Romania, in november, along with our joint venture Solingen’s success. partner Caelum development. Representing an investment of We strive to deliver assets that provide a safe environment and €180 million, this shopping centre will host around 200 shops 2 prove more resilient in terms of resource consumption, waste within 70,000m of GlA and offer leisure and sports facilities management and other challenges associated with climate connected with the adjoining Titan park. Scheduled for change. The construction works for all three developments inauguration in 2016, parklake will incorporate solutions to achieved dual certification in accordance with ISo 14001 and reduce energy and water consumption and maximise waste ohSAS 18001 standards in line with our long-term objective. recycling. With an excellent location, transport links and a primary hofgarten Solingen was the first development of its kind in catchment area of over 500,000 people, we are confident that Germany to do so. parklake will offer residents a compelling shopping and leisure venue and become a key attraction in bucharest. 2013 In Review .15

We are also excited to announce our first development project l In may 2013, we completed the €4.5 million expansion and in north Africa. Zenata shopping centre, located in mohamedia, refurbishment of AlgarveShopping in Albufeira, portugal. a city close to Casablanca, morocco, represents a €125 million The refurbishment strengthened the tenant mix and joint venture partnership with marjane, Al Futtaim and Société improved the food court and mall area. Significantly, it d’Amenagement de Zenata (Groupe CdG). The centre will have added 3,000m2 of GlA enabling the entry of the largest a GlA of 90,000m2 with 245 shops serving a catchment area C&A and h&m shops in the Algarve region. of 5.8 million inhabitants. due to open in 2017, it will create an l Another highlight was the completion of works to enhance estimated 4,500 direct jobs for the local community. the commercial and leisure offer at Centro Colombo in lisbon. In keeping with our drive to bring innovative expansion and refurbishment activity adds value to concepts to consumers, the ImAX® cinema marked the existing assets introduction of digital 3d cinema in portugal. The opening We remain focused on maintaining and improving the quality of primark in october had an overwhelmingly positive of our existing assets, and in 2013 we completed or commenced impact on traffic and sales, highlighting once again the refurbishment and expansion works at several assets in our pull of rising international brands and their importance in portfolio: anchoring our centres. A primark store is also scheduled to open in norteShopping in porto, where in September we l In September, we announced the €31 million expansion announced the second phase of the refurbishment works and refurbishment of Franca Shopping, located in São paulo which began in 2012. state, brazil. The investment will increase the centre’s capacity by almost two-fold to 30,000m2 improving its our investment plans for expansions and refurbishments commercial and leisure offer with 68 new shops (including include initiatives to improve the safety and the eco-efficiency four anchors) and 649 new parking spaces. Also in brazil, of centres in line with our Safety, health and Environment we completed the refurbishment of Shopping plaza Sul management System and the requirements of ISo 14001 and in São paulo which has revitalised the tenant mix and ohSAS 18001 certification. re-energised the shopping centre.

Hofgarten Solingen, Germany

our tWo inAuGurAtionS in brAZiL SiGniFiCAntLy Added to our GLA under mAnAGement And eStAbLiSH our preSenCe in tWo importAnt AreAS WHere We Aim to beCome tHe dominAnt pLAyer.

Freccia rossa, Italy .16 SonAE SIERRA

..... operAtionAL perFormAnCe (ConTInuEd)

new service mandates in europe, north Africa and Asia In 2014 we will aim to expand our professional services business in current markets and enter new ones. Indeed, the beginning providing professional services continues to be a key aspect of 2014 saw an agreement reached with Citic Capital to provide of our strategy to grow new income streams and increase property management services in China, with a view to offering know-how and experience in new and emerging markets. joint venture services in the future, which offers a launch pad our track record in property management has enabled us for our business in a market with great potential. to secure a number of new mandates across a range of geographies. our professional services business as a whole We ensure that at least the key requirements of our Safety, (including property development, management and leasing health and Environment management System are deployed services) is now valued at €20 million, representing an increase when working in joint venture partnerships and delivering of 30% since 2012. Whilst the market for these services has professional services. This helps us to offer our clients a higher become more crowded, Sonae Sierra’s competitive advantage quality, environmentally- and socially- conscious service lies in the breadth of services we can deliver across the whole whilst contributing to raising the standards for ShE (Safety, property lifecycle. health and Environment) practices in markets where these aspects are not well regulated. Indeed, our track record in ShE by the end of 2013, we had 56 active contracts in place to and our broader sustainability performance represents a deliver development, management and leasing services to differentiator for our Company offering added value on our clients, in countries as diverse as morocco, Algeria, Georgia, services provided. Turkey and Azerbaijan. In 2013 we entered the Turkish market with the creation of expert property management delivers solid results Sierra Reval, a service provider in the shopping centre sector The macro-economic conditions in the Eurozone as a whole, covering development, management and letting activities. and portugal and Spain in particular, have presented ongoing With contracts in place in eight shopping centres country wide challenges for our shopping centre management business in – from development to property management and leasing 2013. however, whilst rents fell by 4.1% and tenant sales saw services – Sierra Reval is responsible for a portfolio with a GlA a 3.6% decline on a like-for-like basis between 2012 and 2013, of over 215,000m2. As well as signalling our entry into the we outperformed the sector in all countries except Spain and Turkish market, Sierra Reval supports our broader expansion in maintained occupancy levels at 95.2% across the region. the wider region by providing service contracts for two shopping centres in Azerbaijan and Georgia. Together, this activity In portugal, sales declined in the first half of 2013 but did reinforces our presence in Europe, north Africa and Asia, and show a surprising pick-up in the second half of the year with demonstrates the confidence that international and local encouraging figures for november and december. Sales for operators have in the added value that Sonae Sierra’s expertise these months were up by 4.9% and 1.8% respectively and insight can bring to their projects. compared to the same period in 2012. overall, across our owned portfolio, tenant sales in portugal outperformed the retail index The delivery of professional services allows us to “test” new by 4.4 percentage points, demonstrating particularly strong markets and garner knowledge and experience that can support performance that has exceeded our expectations in the context direct investments in the future. proof that this strategy is of austerity measures in the country. moreover, the occupancy starting to materialise is the recent announcement of a rate of our portuguese portfolio increased to 97.4% (up two development project in morocco following our first entry into percentage points compared with 2012), supported by the this country as a service provider in 2011. reopening of multiplex cinemas following a contract with a new cinema operator, Grupo oriente. by the end of the year we also saw signs of optimism in the Spanish market, with growing consumer confidence and renewed investor interest. overall, sales decreased compared with 2012 although this was affected by two shopping centres in particular which saw more significant declines in sales owing to particularly acute economic headwinds in one location and increasing competition at both. occupancy rates across our portfolio under management Spanish portfolio decreased from 93.7% in 2012 to 92.4% in 2013 and rents also fell. GlA (000 m2) number of contracts

2013 2,303 / 8,288

2012 2,261 / 8,428

2011 2,234 / 8,495

2010 2,220 / 8,521

2009 2,284 / 8,924

2008 2,163 / 8,455

2007 2,183 / 8,162

2006 2,001 / 7,293

2005 2,455 / 7,189 2013 In Review .17

Across Italy and Germany, where we own a smaller number by tHe end oF 2013, We of assets, broader market comparisons are less meaningful. on a like-for-like basis, overall tenant sales in Germany were HAd 56 ACtive ContrACtS up 0.3% compared with 2012. our occupancy rates averaged in pLACe to deLiver 94.5% and rents were down by 0.9%. In Italy, tenant sales fell deveLopment, mAnAGement by 1.2%, influenced by the broader macroeconomic climate. And LeASinG ServiCeS despite this, tenant sales outperformed the market benchmark to CLientS, in CountrieS and some shopping centres experienced growth towards the AS diverSe AS moroCCo, end of the year. We also achieved an average occupancy rate ALGeriA, GeorGiA, turKey of 96.1% and rents rose by 6%. And AZerbAiJAn. In Romania, where we own one shopping centre, sales increased by 1.7% and rents fell by 1.3%. While in Greece, where we also own one shopping centre, sales continue to be weak and we do not yet see signs for optimism in this particularly distressed market. 2013 saw robust growth in brazil, albeit at a slower pace than in 2012. Across our own portfolio, we saw tenant sales increase by 5.5% compared to 2012. Rents in Reais and on a like-for-like basis rose by 8.6% during the same period, allowing us to maintain the biggest margins on rents in the market. occupancy rates across our portfolio were down at 92.1% compared with 97% in december 2012, and this was largely due to the inauguration of boulevard londrina Shopping and passeio das Águas Shopping.

rents

Fixed rents variable rents total rents % 13/12 rents 2013 2012 2013 2012 2013 2012 total like-for-like portugal 169.5 180.5 3.9 3.4 173.4 184.0 -5.7% -5.7% Spain 55.0 60.2 0.7 1.3 55.7 61.5 -9.4% -5.9% Italy 35.3 31.7 1.5 1.3 36.7 33.0 11.5% 6.0% Greece 1.7 1.5 0.1 0.1 1.8 1.6 12.1% 12.1% Germany 38.3 46.4 2.0 2.5 40.3 48.9 -17.5% -0.9% Romania 1.5 1.5 0.0 0.0 1.6 1.6 -1.3% -1.3% Europe 301.4 321.9 8.2 8.7 309.6 330.6 -6.4% -4.0% brazil (€) 73.4 94.5 8.8 10.2 82.2 104.6 -21.5% -4.8% brazil (R$) 209.2 236.2 25.1 25.4 234.3 261.6 -10.4% 8.6% total 374.8 416.4 17.0 18.8 391.8 435.2 -10.0% -4.1% Rents in € million

Sales visits

% 13/12 % 13/12 2013 2012 total like-for-like 2013 2012 total like-for-like portugal 1,951.6 2,015.8 -3.2% -0.6% portugal 171.8 176.1 -2.4% -0.5% Spain 689.9 771.1 -10.5% -6.2% Spain 67.0 71.4 -6.2% -2.9% Italy 368.4 380.6 -3.2% -1.2% Italy 27.2 28.0 -3.0% 2.4% Greece 10.2 12.5 -18.1% -18.1% Greece 1.6 1.7 -6.8% -6.8% Germany 505.3 501.6 0.7% 0.3% Germany 32.3 34.9 -7.2% -1.5% Romania 13.3 18.6 -28.6% 1.7% Romania 3.4 6.2 -45.7% -2.9% Europe 3,538.8 3,700.2 -4.4% -1.8% Europe 303.3 318.3 -4.7% -1.0% brazil (€) 1,619.2 1,780.3 -9.0% -7.5% brazil 102.3 107.3 -4.6% -0.2% brazil (R$) 4,616.5 4,524.5 2.0% 5.5% total 405.6 425.6 -4.7% -0.9% total 5,158.1 5,480.5 -5.9% -3.6% visits in million Sales in € million .18 SonAE SIERRA

..... operAtionAL perFormAnCe (ConTInuEd)

Cost-cutting efforts support tenant retention in a challenging economic climate In the context of ongoing economic challenges, sustaining high electricity efficiency Water efficiency occupancy rates is a priority for our property management (excluding tenants) of (excluding tenants) of business. Indeed, the sustained results we have achieved in our owned portfolio the owned portfolio terms of tenant sales, rent collection and occupancy in (kWh/m2 mall and (litres/visit) Southern Europe over the past few years owe much to our toilet area) efforts to reduce costs for our tenants whilst maintaining footfall and promoting sales activation. besides supporting tenants on a case-by-case basis – providing advice and, in some 2020 400 2020 3.0 cases, discounts in rent – we have relentlessly endeavoured to 2013 444 2013 3.7 reduce service charges in our shopping centres so that our 2012 479 2012 3.6 tenants ‘effort ratio’ remains stable. 2011 514 2011 3.7 This strategy has involved working with service suppliers 2010 514 2010 3.7 to improve efficiency and, importantly, reducing operational costs through eco-efficiency measures. In 2013, it allowed us to reduce the service charge by an average 2.6% across total waste recycled proportion of waste our European shopping centres. Increasing the eco-efficiency as a proportion of that is sent to landfill of our shopping centres is particularly relevant because it not waste produced (% by weight, across our only allows us to cut costs but also reduce our environmental (% by weight, across our owned portfolio) impact, support the long-term resilience of our assets in the owned portfolio) context of climate change and tightening environmental regulation and deliver greater comfort to tenants and visitors alike. on this front, 2013 saw good progress towards our long 2020 60% 2020 20% term goals covering energy use, water use and waste. 2013 59% 2013 20% 2012 55% 2012 29% Altogether, we have managed to avoid combined costs of €18.2 million in 2013 as a result of eco-efficiency improvements 2011 53% 2011 36% introduced since 2002 (for electricity and waste) and 2003 2010 51% 2010 39% (for water). At the same time, this has enabled us to reduce water consumption by 14% (since 2003) electricity consumption by 40% (since 2002) and increase recycling rates by an impressive 214% (also since 2002).

parque d. pedro Shopping, brazil

GranCasa, Spain 2013 In Review .19

plaza mayor, Spain

uncompromised high-quality service delivered to 2013 SAW uS reinForCe tenants and visitors eFFortS to reduCe tHe In spite of our cost-cutting drive, we have not compromised impACt oF our SHoppinG on our commitment to deliver a consistently high-quality CentreS on tHe environment, service to our tenants and visitors. our pledge to achieve inCreASe tHe SAFety oF zero-accidents across our sites is still of utmost importance peopLe in And Around our to us, and in 2013 we continued our efforts to increase the buiLdinGS And promote safety conditions of our shopping centres. ACtivitieS WHiCH Support We continue to pro-actively engage with our tenants and LoCAL Community memberS consumers in order to obtain feedback on our services and to And buSineSSeS. understand their priorities and anticipate their evolving needs. In 2013, 100% of our shopping centres achieved a tenant satisfaction rating of 4 or above on a scale of 1 to 6. Feedback from our tenants reinforced the importance of our strategy to cut costs and maximise footfall and confirmed tenants’ support for the actions we have taken so far. The findings of our visitor survey highlighted the importance of getting the right balance between services and technology, quality entertainment and affordable prices. visitors also feel strongly that shopping Global Lost Workday Global frequency rate centres should support the local community: indeed, half of Case Accidents of level 3, 4 and 5 visitors surveyed stated that they preferred to visit ‘more Frequency rate category accidents (LWCAFr) among per million visits in sustainable shopping centres’ and 75% feel more satisfied suppliers in shopping shopping centres when they visit centres which demonstrate greater stewardship centres of aspects such as eco-efficiency, safety and the promotion of local and/or ethical businesses and products. 2013 2.17 2013 1.73 2013 saw us reinforce efforts to reduce the impact of our 2012 3.16 2012 1.52 shopping centres on the environment, increase the safety 2011 2.88 2011 1.48 of people in and around our buildings and promote activities 2010 3.88 2010 1.02 which support local community members and businesses. .20 SonAE SIERRA

..... operAtionAL perFormAnCe (ConTInuEd)

pioneering retail concepts increase sales and diversify We continued to rollout our digital strategy in Europe and our tenant mix brazil building on the success of initiatives such promoFans® – a multi-channel promotions platform launched in portugal In 2013, we witnessed consumers seeking an integrated in late 2012 that enables tenants to build customer-loyalty shopping experience combining virtual and physical spaces. and brand awareness by offering promotions via our shopping moreover, the dynamism of modern retail presents opportunities centres using a digital platform. Since launch, the success of for businesses to better connect with consumers; to understand this platform has been confirmed – 902 tenants, representing their evolving profiles and respond to their changing behaviour. 90% of our sales, now regularly use promoFans® to promote In this context, investment in digital technology is a current their products and services to around 300,000 people who are priority for Sonae Sierra, and is one that has already borne subscribed to the platform in portugal. In november we extended fruit for our property management business. Indeed, a large promoFans® to our Spanish shopping centres, where it part of our success in sustaining occupancy levels and achieved around 60,000 registrations among consumers improving tenant sales in portugal in particular can be within 10 days of its launch. attributed to these efforts. november 2013 saw the launch of a digital lounge in hofgarten Solingen in Germany. This pioneering project, the first of its kind in our portfolio, responds to consumer demands for a social venue integrated into their shopping experience. Combining modern design with interactive digital features, this pilot project will be fine-tuned and rolled out across other Sonae Sierra shopping centres in 2014.

tHe SALe oF tHree ASSetS in SpAin And itALy reFLeCt SonAe SierrA’S CApACity passeio das Águas Shopping, brazil to CreAte LonG-term vALue For inveStorS tHrouGH our ASSet mAnAGement StrAteGy, And our AbiLity to reCyCLe CApitAL to Support our expAnSion in neW And exiStinG mArKetS.

boulevard Londrina Shopping, brazil

Le terrazze, Italy 2013 In Review .21

In keeping with our commitment to offer unique experiences The quality of our shopping centres and effectiveness of our to consumers, and as a part of our drive to keep our shopping management practices, which together offer increased value of centres vibrant in the context of the economic crisis, 2013 our assets to investors, meant we were able to take advantage saw us build upon our ‘Flash Store’ project with the Coop Store, of the returning investor demand in Spain and Italy where we a shared retail space run by individuals and small businesses completed three disposals by year end. In Spain, the Sierra Fund as a cooperative. The Flash Store project has enjoyed great (the pan-European retail fund in which Sonae Sierra has a stake success, attracting about 90 retail operators in portugal and of 50.1%) and CbRE Iberian value Added Fund sold parque enabling us to introduce new brands and concepts in our principado in Asturias to a company owned by properties shopping centres. ‘lab Stores’, which are another offshoot, plC and pension plan (Cpp) for €141.5 million. provide a testing ground for new brands, and over 30% of In Italy, the Sierra Fund sold valecenter and Airone shopping brands that have used the concept have since become centres to blackstone Real Estate partners Iv and blackstone long-term tenants. Real Estate partners vII for €144.5 million, a value in line with As we move into 2014, we will continue to develop our digital the latest independent valuation of the properties. strategy and expand on our pilot programmes to support the The sale of three assets in Spain and Italy reflect Sonae Sierra’s latest consumer trends and further embed our shopping capacity to create long-term value for investors through our centres within the local communities where they operate. asset management strategy, and our ability to recycle capital to support our expansion in new and existing markets. Favourable acquisition and disposals concluded in portugal, Spain and italy extension of the Sierra Fund Yields in our European markets continued to fluctuate in 2013. In 2013 we reached a consensus with investors to extend We saw a 7% reduction in the value of our European portfolio, the Sierra Fund operations for an additional five year period. although the portfolio changes and the yields fluctuate to Given the importance of the Sierra Fund within our portfolio, different degrees between geographies and assets. In Spain, the extension of the Sierra Fund’s life to october 2018 is a we witnessed a return of investor activity towards the end significant achievement. Following the sale of münster Arkaden of the year and, as a result, yields have started to compress in Germany in 2012 and the sales of valecenter and Airone for prime properties. In portugal, we are starting to see some in Italy at the end of 2013, the Sierra Fund’s portfolio is now stabilisation and we also expect yields for prime properties concentrated exclusively on the Iberian market. to compress if the economic uptake experienced during the second half of the year continues into 2014. In Italy, asset With respect to the Sierra portugal Fund – which encompasses values decreased and, mirroring Spain, we experienced a return nine properties in portugal and is due to terminate in 2018 – of investor demand for prime assets. In Germany and Romania, we will wait for market recovery before considering any asset meanwhile, valuations remained flat. sales. In the meantime, we will continue to focus on increasing tenant sales and reducing operational costs in the assets In march we acquired an additional stake in CascaiShopping within this Fund. in portugal. Through a majority-owned subsidiary, we reached an agreement with a fund managed by Rockspring property Investment managers for the acquisition of its 50% stake in open market value of Centres in operation this centre. With a varied and high quality retail and leisure offer within 73,800m2 of GlA, CascaiShopping is still regarded as one of the main retail destinations in greater lisbon. Total value Sonae Sierra share omv in € million by increasing our investment to obtain a majority stake in CascaiShopping, we will be able to leverage the value of the 5,638 asset, exploiting its sustained commercial potential. 2013 2,996

5,789 2012 3,046

6,320 2011 3,328

6,481 2010 3,504

6,340 2009 3,595

6,166 2008 3,598

6,147 2007 3,786

4,741 2006 2,745

4,096 2005 2,498 .22 SonAE SIERRA

..... ConSoLidAted ACCountS

The following Financial Statements consolidate all Sonae Sierra balance Sheet companies by the proportional method. The value of our assets reached €2.3 billion in december 2013, of which €2 billion corresponds to Investment properties and €131 million Sonae Sierra Consolidated Accounts corresponds to properties under development and Concessions. profit & Loss Accounts The increase in Investment properties compared to 2012 is explained by the openings of boulevard londrina Shopping, passeio das Águas Sonae Sierra recorded a net profit of €3.6 million in 2013, compared Shopping and hofgarten Solingen, the acquisition of an additional 50% to -€45.9 million in 2012. stake in CascaiShopping which were partially compensated by our The difference is mainly due to lower indirect losses in 2013 as a disposals and adverse FX fluctuations affecting our brazilian portfolio. consequence of lower yields expansion in Europe and lower properties under development is lower than 2012, largely due to the impairments/provisions compared to 2012, as all properties under openings of boulevard londrina Shopping, passeio das Águas Shopping development were recorded at fair value. and hofgarten Solingen. In december 2013, our direct net profit reached € 57.6 million, an 8% The lower net Worth compared to 2012 is mainly explained by adverse decrease from december 2012. This was mainly due to changes in our variances in translation reserves as a consequence of the depreciation portfolio following disposals in 2012 and 2013 and adverse foreign of the brazilian Real (down 17% in 2013). exchange (FX) fluctuations which were not totally compensated by our inaugurations in 2013, the first full year of results at shopping bank loans are also lower compared to 2012 and this is mainly due centres inaugurated in 2012 and cost cutting efforts across all parts to the disposals carried out by the end of year. of Sonae Sierra.

Consolidated profit and Loss Account (€000) 2013 2012 % 13/12 direct income from investments 228,087 227,326 0% direct costs from investments 114,636 111,015 3% ebitdA 113,451 116,311 -2%

net financial costs 38,141 38,171 0% other non-recurrent income/cost -2,699 -2,552 -6% direct profit before taxes 72,612 75,589 -4% Corporate tax 14,974 13,005 15% direct net profit 57,637 62,584 -8%

Gains realised on sale of investments -3,828 6,991 -155% Impairment -9,322 -34,965 – value created on investments -39,102 -84,382 54% indirect income -52,251 -112,356 53% deferred tax 1,749 -3,891 – indirect net profit -54,000 -108,466 50% net profit 3,637 -45,882 –

Consolidated balance Sheet (€000) 31 dec 2013 31 dec 2012 var. 13/12 Investment properties 1,952,413 1,933,026 19,387 properties under development and others 130,771 218,511 -87,740 other assets 117,153 125,602 -8,449 Cash & equivalents 124,609 153,260 -28,651 total assets 2,324,947 2,430,399 -105,453

net worth 794,410 840,809 -46,399 bank loans 1,031,267 1,059,613 -28,346 deferred taxes 252,887 261,438 -8,551 other liabilities 246,382 268,538 -22,156 total liabilities 1,530,536 1,589,590 -59,053 net worth and liabilities 2,324,947 2,430,399 -105,453 2013 In Review .23

Financial resources The loan-to-value (lTv) is 43.9% which compares unfavourably with 42.9% in 2012. The increase derives mostly from the reduction in the debt breakdown and maturity value of our assets due to the yields expansion in Europe and adverse FX Sonae Sierra has maintained its conservative long-term funding strategy. fluctuations affecting our brazilian portfolio. Although higher compared The capital structure is supported by a long average debt maturity of to 2012, the lTv presents a noticeable reduction since 2009. 4.77 years, 71% of debt with fixed interest costs showing the prudent The Interest Cover in december 2013 was 2.54, well above our target hedging of interest rate risk and a balanced debt maturity profile. of 2, thanks to the currently low average cost of debt. The following chart illustrates Sonae Sierra’s debt as of Sonae Sierra also measures its exposure to retail real estate development 31 december 2013. risk through the development Ratio. This monitors the weight of the funds already spent in all committed and non-committed developments debt Structure debt maturity and those still to be spend in all committed developments in relation to our total real estate portfolio (again, including the funds still to be Commercial paper >2018 31% spent on committed projects). €5m 2018 7% bank loans We monitor our ability to control the development pipeline in order to €926m 2017 19% stabilise debt leverage while portfolio asset values are volatile. The bond loans 2016 25% development Ratio is lower than december 2012 which is mainly due €106m 2015 9% to the opening of boulevard londrina Shopping, passeio das Águas 2014 10% Shopping and hofgarten Solingen.

net Asset value Cost of debt Sonae Sierra measures its performance, in a first instance, on the basis Sonae Sierra continues to demonstrate good access to low cost of changes to the net Asset value (nAv) plus dividends distributed. financing from banks and capital markets. The average cost of debt for We calculate our nAv according to the guidelines published in 2007 by Sonae Sierra is 30 basis points above 2012 and currently stands at InREv (European Association for Investors in non-listed Real Estate 4.3%. Excluding brazil, the average cost of debt is 3.6%, which supports vehicles), an association of which Sonae Sierra is a member. the interest coverage ratio and remains relatively low versus our on the basis of this methodology, the nAv of Sonae Sierra, as of European peers. 31 december 2013, was €1,000 million compared to €1,050 million on 31 december 2012. The nAv per share of the properties attributed to Average Cost of debt – % Fixed interest – Sonae Sierra is €30.76 against €32.29 recorded on 31 december 2012. europe europe The nAv reduction results mainly from the effects of adverse FX fluctuations (a Real depreciation of 17%). 2013 3.6% 2013 71% 2012 3.5% 2012 78% net Asset value (nAv) 2011 3.8% 2011 70% amount in €000 31 dec 2013 31 dec 2012 2010 3.4% 2010 74% nAv as per the financial statements 794,410 840,809 Revaluation to fair value of developments 5,350 9,841 Financial ratios deferred tax for properties 203,758 217,382 Goodwill related to deferred tax -16,459 -34,503 As of 31 december 2013, Sonae Sierra’s financial ratios show a prudent Gross-up of assets 13,176 16,443 and solid approach. nAv 1,000,236 1,049,972

ratios 31 dec 2013 31 dec 2012 net Asset value (nAv) loan-to-value 43.9% 42.9% nAv (€000) Interest cover 2.54 2.60 nAv per share (€) development ratio 9.4% 12.4%

dec 2013 1,000 / 31

dec 2012 1,050 / 32 Loan-to-value dec 2011 1,173 / 36 dec 2010 1,251 / 38

2013 43.9% dec 2009 1,228 / 38

2012 42.9% dec 2008 1,416 / 44

2011 43.7% dec 2007 1,713 / 53

2010 46.4% dec 2006 1,490 / 46

2009 50.1% dec 2005 1,265 / 39

dec 2004 1,060 / 33

dec 2003 948 / 29

dec 2002 1,037 / 28

dec 2001 934 / 25 .24 SonAE SIERRA

..... ConSoLidAted ACCountS (ConTInuEd)

Sierra investments The Indirect Result is €18.3 million higher than last year due to a lower decrease in the value of the existing portfolio, explained by lower yield Sierra Investments made a negative contribution of -€29.4 million expansion in portugal, Spain and Italy. to the Consolidated net profit of Sonae Sierra. In 2012, value Created in Investment properties was heavily penalised The direct net profit of Sierra Investments is derived from the by the yield expansion in portugal, Spain and Italy as a consequence operation of shopping and leisure centres that are part of its portfolio, of the economic crisis and the write-off of pantheon plaza. This was including those assets that are in the Sierra Fund and the Sierra despite a gain from the disposal of münster Arkaden. portugal Fund. direct profits also include the asset management services provided to the properties by Sierra Asset management. Investment properties decreased by €43 million compared to 2012. This is explained by the disposals of parque principado, valecenter net operating Income decreased by 3% compared to last year, mainly and Airone and a decrease in the value of the portfolio in 2012, which due to the disposals of münster Arkaden in 2012 and parque principado was partially compensated by the opening of hofgarten Solingen. in 2013. This was despite the acquisition, through a majority-owned subsidiary of an additional 50% stake in CascaiShopping and the bank loans are below those at december 2012 mainly due to opening of hofgarten Solingen. the disposals. Indirect net profits arise either from the change in value of the Investment properties or the realisation of capital gains from the sale of assets and/or shareholding positions.

profit and Loss Account (€000) 2013 2012 % 13/12 Retail net operating margin 87,771 90,329 -3% parking net operating margin 1,499 1,522 -1% Cogeneration net operating margin 246 220 12% Shopping centre net operating income 89,515 92,071 -3% Asset management net operating income 5,640 5,603 1% net operating income (noi) 95,155 97,674 -3%

net financial costs 31,851 37,403 -15% other non-recurrent income/cost 62 -101 162% direct profit before taxes 63,366 60,170 5% Corporate tax 12,699 8,720 46% direct net profit 50,667 51,449 -2%

Gains realised on sale of investments -3,828 3,627 -206% value created on investments -95,281 -117,822 19% indirect income -99,109 -114,195 13% deferred tax -19,042 -15,849 -20% indirect net profit -80,066 -98,347 19% net profit -29,399 -46,897 37%

Consolidated balance Sheet (€000) 31 dec 2013 31 dec 2012 var. 13/12 Investment properties & others 1,565,202 1,608,381 -43,179 other assets 154,665 174,734 -20,070 Cash & equivalents 94,196 81,635 12,562 total assets 1,814,063 1,864,749 -50,687

net worth 568,448 596,373 -27,925 bank loans 863,201 881,214 -18,014 deferred taxes 197,743 213,541 -15,799 other liabilities 184,671 173,621 11,050 net worth and liabilities 1,814,063 1,864,749 -50,687 2013 In Review .25

Sierra developments Sierra developments made a negative contribution of -€5.6 million to the Consolidated net profit of Sonae Sierra. The development Services rendered are 23% higher than those provided during same period of last year, mainly due to higher professional Services Rendered to Third parties in China, ukraine and morocco. The figure presented in value Created in projects reflects the opening of hofgarten Solingen in 2013 and the Asset@Risk provision booked in the Greek and Romanian projects in 2012.

profit and Loss Account

(€000) 2013 2012 % 13/12 project development services rendered 6,949 5,628 23% value created in projects 9,927 -25,542 139% operating income 16,876 -19,914 – operating costs 18,383 19,029 -3% net operating income (noi) -1,507 -38,942 96% net financial costs 3,013 283 966% other non-recurrent income/cost -5 -196 98% Income tax 1,061 642 65% net profit -5,585 -40,063 86%

Consolidated balance Sheet (€000) 31 dec 2013 31 dec 2012 var. 13/12 properties under development 121,959 148,748 -26,790 other assets 103,487 85,019 18,468 Cash & equivalents 1,049 8,127 -7,078 total assets 226,495 241,895 -15,400

Shareholder funds 80,007 88,540 -8,534 bank loans 7,997 17,334 -9,336 deferred taxes 244 159 85 other liabilities 138,246 135,862 2,385 net worth and liabilities 226,495 241,895 -15,400 .26 SonAE SIERRA

..... ConSoLidAted ACCountS (ConTInuEd)

Sierra management Sierra management made a positive contribution of €4.4 million to the Consolidated net profit of Sonae Sierra. The net operating Income (noI) increased by 26% as a consequence of higher professional Services Rendered to Third parties and efficiency gains due to the centralisation of management teams. The Total Assets of €69.2 million corresponds to short term loans to group companies and to rents not yet received.

profit and Loss Account (€000) 2013 2012 % 13/12 Total income from management services 41,450 34,268 21% operating costs 34,378 28,660 20% net operating income (noi) 7,071 5,608 26%

net financial costs -698 -1,265 45% other non-recurrent income/cost -534 -369 -45% Income tax 2,843 1,979 44% net profit 4,392 4,524 -3%

Consolidated balance Sheet (€000) 31 dec 2013 31 dec 2012 var. 13/12 other assets 24,383 32,626 -8,242 Cash & equivalents 44,772 32,595 12,178 total assets 69,156 65,220 3,935

net worth 22,943 18,551 4,392 other liabilities 46,212 46,669 -457 total liabilities 46,212 46,669 -457 net worth and liabilities 69,156 65,220 3,935 2013 In Review .27

Sonae Sierra brasil The Indirect net profit is higher than 2012 due to yields compression at core shopping centres and the opening of passeio das Águas Shopping. Sonae Sierra brasil made a positive contribution of €34.2 million to the Consolidated net profit of Sonae Sierra. The Investment properties reached €391 million in december 2013, an increase of €3 million compared to 2012. This is explained by the net operating Income has decreased by 15% compared with 2012. opening of boulevard londrina Shopping and passeio das Águas This is explained by the disposals of 2012 which were not totally Shopping, and an increase in the value of existing properties that compensated by the openings of 2013, and by higher other non-recurrent almost fully offset the adverse FX fluctuations. costs related to corporate restructuring implemented in 2013. The lower Financial Result is a consequence of lower cash and bank deposits and the non-capitalisation of boulevard londrina Shopping, passeio das Águas Shopping and uberlândia Shopping since opening.

profit and Loss Account (€000) 2013 2012 % 13/12 Retail net operating margin 19,839 23,615 -16% parking net operating margin 3,111 3,237 -4% Shopping centre net operating income 22,950 26,852 -15% Total income from services rendered 5,822 6,280 -7% overheads 7,686 8,338 -8% net operating Income (noI) 21,085 24,794 -15% net financial costs/(income) 3,976 1,750 – other non-recurrent income/cost -596 -237 -151% direct profit before taxes 16,513 22,806 -28% Corporate tax 4,024 4,626 -13% direct profit 12,489 18,180 -31%

Gains realised on sale of investments – 3,251 – value created on investments 36,878 24,752 49% deferred tax 15,138 9,636 57% indirect net profit 21,740 18,368 18% net profit 34,229 36,548 -6%

Consolidated balance Sheet (€000) 31 dec 2013 31 dec 2012 var. 13/12 properties 391,290 388,473 2,817 other assets 18,390 16,836 1,554 Cash & equivalents 44,789 85,255 -40,465 total assets 454,469 490,564 -36,094 net worth 287,303 316,526 -29,223 bank loans 85,069 86,066 -996 deferred taxes 57,347 51,720 5,627 other liabilities 24,750 36,252 -11,502 net worth and liabilities 454,469 490,564 -36,094 .28 SonAE SIERRA

..... Future outLooK

We have identified four trends as being among the most important for our sector throughout the rest of this decade. Our business strategy puts us in a strong position to exploit each of these trends, with our sights set on being the leading international shopping centre specialist in the industry.

Centro Colombo, portugal Global retail investment will continue to shift towards ‘growth’ and ‘emerging’ markets as internationalisation accelerates We will capitalise on our development know-how in order to gain entry into new markets on a capital-light basis and via our professional services business. We will continue to forge effective partnerships with local operators, following our recent successes with Sierra Cevital in Algeria, Sierra Reval in Turkey and our joint venture agreement with Citic Capital in China. our sustainability strategy sets a consistent direction of travel wherever we operate, both in respect to running a best in class safety, health and environment management system, but also by ensuring we remain resilient to, and capture value from, the social and environmental challenges shared across our geographies.

boulevard Londrina Shopping, brazil

Shopping metrópole, brazil 2013 In Review .29

Key cities and locations will dominate a marketplace environmental regulation, extreme weather that values quality above all events and pressure on natural resources will our development business will seek opportunities to develop make eco-efficiency imperative for shopping new projects which will have the capacity to achieve and centre owners and operators maintain a strong competitive position in their catchment area. We are proud of the results delivered by our eco-efficiency We will continue to take a capital light approach to investment strategy over the past twelve years. however, our business both in mature and emerging markets and in prime and is too reliant on limited supplies fossil-fuel based energy, secondary locations. water and non-renewable raw materials in order to build and Within our investment portfolio, we will maintain an active operate shopping centres. In the long-term, this poses a risk investment/divestment strategy, and on our operating assets, to our business: to protect our assets against higher costs we will pursue opportunities for value creation through and penalties associated with natural resource consumption expansions, refurbishments and tenant-mix improvements. and environmental pollution, as well as the risk of water and energy shortages, we need to strive towards true resource our property management business will aim to maximise value resilience. In 2013, we investigated the potential for different for money on behalf of both tenants and investors, focusing solutions through our Resource Resilience strategy, and in on achieving high occupancy levels; tenant sales growth; effort 2014 and beyond we will begin to test some of these solutions, rate optimisation; service charge reductions and stable rent aiming to roll them out across our whole portfolio. more collection. Anticipating the latest trends in retail, we will specifically, our next steps will be to: proceed with the roll-out continue to focus on providing ultimate experiences to visitors; of water reuse and rainwater harvesting systems; trial the offering premium space and unique shopping centre concepts introduction of a polluter-pays system for tenants’ waste and so that our centres remain the destinations of choice for reduce or eliminate plastic waste in food courts. due to market consumers. As a part of this activity, we will seek to support and regulatory constraints, we cannot progress as quickly as tenants in maximising sales; offering flexible retail formats and possible with the on-site energy generation solutions, but we ensuring a diverse tenant mix by promoting the integration of will continue to endeavour to find a way to make these viable. small-scale, unique and local businesses. With the retail sector undergoing a period of rapid change, A new generation of consumers will require an we need to ensure that our Company has the talent, agility integrated virtual and physical retail space and and flexibility required to remain ahead of the game. We have expect shopping centres to provide experiences, developed our capacity to deliver training in-house to meet our staff development needs. Whilst this strategy has been not just ‘shopping’ effective, in the future we will aim to enhance our capacity We will continue to invest in digital technology to support both for leveraging knowledge by exploring partnerships with our tenants and our own business. Following the success of universities as a way to promote ongoing skills development promoFans®, we will dedicate significant resources to exploring and innovative thinking across our Company and with our other innovative ways of connecting consumers and retailers local communities. to increase footfall and promote sales activation. We will also proceed with our strategy to promote more sustainable lifestyles. building on our Coop Store concept, our property management teams will pioneer further projects to support local businesses and diversify our offer to shopping centre visitors, testing formats such as local markets and the use of vacant or pop-up stores. more specifically, our next steps will be to: proceed with the roll-out of an initiative to support small local businesses that offer regional products in portugal, Spain, Germany and brazil and to provide mentoring and support, including business planning, project development and funding, for young entrepreneurs looking to establish their own retail businesses.

Alexa, Germany

uberlândia Shopping, brazil .30 SonAE SIERRA

..... boArd memberS And exeCutiveS

non-executive directors

paulo Azevedo mark preston Ângelo paupério Chairman non-Executive director non-Executive director paulo Azevedo joined Sonae in 1988 as mark preston joined Grosvenor in the uK Ângelo paupério has been a non- Executive new Investments Analyst and project in 1989. Seconded to in 1995, director of Sonae Sierra since 2000. he is manager. Subsequently, he held different he returned to lead Grosvenor’s fund also Chairman of Sonaecom’s Executive management positions in several group management operations in 1997, spent four Committee, Executive vice-Chairman of companies. From 1996 to 1998 was years in San Francisco from 2002, became Sonae SGpS and sits on the board of Sonae Executive director at modelo Continente Chief Executive of Grosvenor britain & Ireland distribuição, all of which are companies in hypermarkets and in 1998 was appointed in 2006 and Group Chief Executive in 2008. the Sonae Group. CEo of optimus. From 2000 to 2007, he is a Trustee of the Westminster Academic achievements was Sonaecom CEo. In 2007 was elected Foundation and also a member of the board degree in Civil Engineering, university Sonae CEo. of The Association of Foreign Investors in of porto; mbA, ISEE, university of porto. Real Estate, the ulI Greenprint Advisory Academic achievements board and the (university of) Cambridge degree in Chemical Engineering, École land Economy Advisory board. politechnique Federal de lausanne; mbA, ISEE, university of porto. Academic achievements bSc (hons) degree in land management, Reading university; member of the RICS; International Executive programme at InSEAd.

nicholas Scarles neil Jones non-Executive director non-Executive director nicholas Scarles (FCA, Attorney at law), neil Jones has been a non-Executive joined Grosvenor in 2004 where currently director of Sonae Sierra since 1999 and is a is Group Finance director. he was previously member of both the Investment and Finance at Centrica, price Waterhouse and Coopers Committees. he is an advisor to Grosvenor, and lybrand in , new York and and a non- Executive director of both majid Toronto. he is a Governor of the Al Futtaim properties and of the leducq haberdashers’ Elstree Schools, member Foundation. he is also Founder and of the Court of Assistants of the shareholder of both Almacantar and haberdashers livery Company. Temprano Capital partners. he was CEo of Grosvenor Continental Europe from 1997 to Academic achievements 2009 and an Executive director of Grosvenor degree in law from Trinity College, Cambridge; Group ltd. based in paris since 1998; he has masters of law from the university of also lived and worked in london, brussels virginia; Fellow of the Institute of Chartered and hong Kong. Accountants in England and Wales; member of the Institute of Taxation (uK); Certified Academic achievements public Accountant (Colorado, uSA). bSc (hons) degree in Estate management; RICS; General management programme, harvard business School. 2013 In Review .31

executive directors

Fernando Guedes oliveira edmundo Figueiredo pedro Caupers Chief Executive officer director, Chief Financial officer director, Investment and Asset management Fernando Guedes oliveira joined Sonae Edmundo Figueiredo joined the Sonae pedro Caupers joined Sonae Sierra in 1997. Sierra in 1991, as development manager of Group in 1989, as Financial Controller of the In 1999 he was appointed board director, the Company’s viaCatarina Shopping and company’s real estate activities. As Sonae with responsibilities for all the Company’s Centro vasco de Gama shopping centres. Sierra’s Chief Financial officer and a member European property management and leasing he had previously spent seven years in other of the Sonae Group Finance Committee, activities. Since 2009 he has been in charge management roles with the Sonae Group. Edmundo’s responsibilities include Internal of the investment division and its European In 1999 he took responsibility for all Sonae Audit; legal, Fiscal and mergers & portfolio. he is also manager of the Sonae Sierra’s development operations in Europe Acquisitions; Finance, planning & Control, Sierra Funds. he is a member of the and was appointed CEo of Sonae Sierra Information Systems and back-office. Sustainability Steering Committee. in April 2010 with direct responsibilities Academic achievements Academic achievements over the human Resources, Corporate degree in Finance, lisbon School of degree in Electrical Engineering, Instituto Communication, marketing and Innovation Economics (ISCEF). Superior Técnico; phd, paris university; and Sustainability. he is the chair of the mbA, InSEAd. Sustainability Steering Committee.

Academic achievements degree in Civil Engineering, university of porto; mbA, ISEE, university of porto; Amp, harvard business School.

Ana Guedes oliveira João Correia de Sampaio José baeta tomás director, developments director, property management and leasing director, Chief Executive officer, Sonae Sierra brasil Ana Guedes oliveira has been with João Correia de Sampaio joined Sonae Sierra having joined the Sonae Group in 1982, Sonae Sierra since 1987. having managed in 1992, since when among other duties in José baeta Tomás was appointed General the development of two major centres the property management area he was manager of Sonae distribuição in 1983. he in portugal, she moved to portfolio managing director of Sierra management joined the Executive Committee in 1985 management in 1999. In 2008 she took portugal and Sierra management Spain. and, in 1995, created Sonae distribuição over responsibilities for all Sonae Sierra’s Since 2009 he has been responsible for in brazil. From 2003 to 2009 he managed European investment activities. Since all Sonae Sierra’s property management Tafisa brazil and supervised the Sonae Group 2009 she has overseen all aspects of and leasing activities (outside of brazil). activities in brazil. In 2010 he was appointed the Company’s development programme he is a member of the Sustainability CEo of Sonae Sierra brasil. he is a member (outside of brazil). She is a member of Steering Committee. of the Sustainability Steering Committee. the Sustainability Steering Committee. Academic achievements Academic achievements Academic achievements degree in military Sciences, Academia militar, degrees in Finance, ISE, lisbon, and Retail degree in Civil Engineering, porto lisbon; mbA, nova university of lisbon. marketing, management Centre Europe, university; mbA, ISEE, university of porto; oxford. Executive program michigan Amp, InSEAd. university uSA. .32 SonAE SIERRA

..... otHer exeCutiveS

João pessoa Jorge Joaquim pereira mendes José Falcão mena Joaquim ribeiro Services, Asia legal, Tax, mergers & Acquisitions EmEA Sierra Services Finance, planning and Control João pessoa Jorge joined the Sonae Group Joaquim pereira mendes joined Sonae Sierra José Falcão mena joined Sonae Sierra in 1989. Joaquim Ribeiro joined the Sonae Group’s in 1983 as one of the executives involved in in 1989 and is responsible for the Company’s he has overseen the Company’s expansion holding company in 1985, before transferring starting the Group’s real estate business. legal, Tax and mergers & Acquisitions activities. in Iberia since 1998 and been responsible to Sonae Indústria. he then moved to london From 1998 until 2010, he was CEo of Sonae for shopping centre development in the for six years, where he worked for Sonae Sierra brasil. In 2010, João took responsibility same region since 2004. In 2010 he became International. In 1995 he joined Sonae Sierra’s for promoting the Company’s professional responsible for the expansion of professional financial department, where – since 2008 – services business in Asia. services to clients in the EmEA region. he has been responsible for Finance, Control, back office and Information Systems. he is a member of the Sustainability Steering Committee and responsible for the Risk management Working Group.

ingo nissen thomas binder vitor nogueira manuela Calhau development, Romania development, Germany property management north Africa marketing and Innovation and Eastern Europe Ingo nissen joined Sonae Sierra in 2000, Thomas binder has more than 30 years’ having overseen the inauguration of more manuela Calhau joined Sonae Sierra when the Company began operations in experience of project and lease management than 10 new shopping centres in Iberia, vitor in 2008, following senior positions in the Germany. Since 2007 he has responsibilities in the German shopping centre, business nogueira previously led the Sierra management telecommunications sector, where she was a for the Company’s shopping centre parks and commercial property sector. support team responsible for 17 shopping board member at several Sonaecom companies developments in Romania. he joined Sonae Sierra in 2006, and has centres in Spain. Since 2007, his responsibilities and a consultant at mcKinsey & Co. manuela was responsibilities for the Company’s shopping have been focused on the Company’s non-Iberian the first portuguese woman to join mcKinsey centre developments in Germany. operations, particularly those in Italy, Greece at management level. At Sonae Sierra, she is and Romania. Since 2012 he became responsible responsible for marketing all the Company’s for property management in north Africa and European operating shopping centres and Eastern Europe. development projects. She is a member of the Sustainability Steering Committee.

Cristina Santos Alexandre Fernandes Alberto bravo Carlos Alberto Correa property management, portugal Asset management, portugal and Spain property management, Spain, Romania CFo & IR officer, Sonae Sierra brasil and Greece Cristina Santos joined Sonae Sierra in 1995, Alexandre Fernandes joined Sonae Sierra in 1997 Alberto bravo spent four years in charge of the Carlos Alberto Correa joined Sonae Sierra brasil as Assistant director of GaiaShopping, where as development manager of norteShopping, property management activities of Spanish as deputy CFo in 2007, having spent a number she later became the centre’s director. She later becoming the centre’s General manager. consultancy CCC before joining Sonae Sierra in of years with some of brazil’s larger companies, subsequently transferred to the Company’s In 2000 he was appointed Asset manager for 2000. Since then, he has held various positions where he acquired extensive experience in the central property management division and is portugal and in 2002 he added Greece and within Sonae Sierra, ranging from regional financial field. In February 2009 he was now the managing director of Sierra management Romania to his portfolio. Since 2008, Alexandre operations manager for southern Spain to appointed CFo of Sonae Sierra brasil, with portugal, with special responsibilities for property has overseen all Sonae Sierra’s real estate head of property management for the whole overall responsibility for the Company’s management and letting. investments in portugal and Spain. of Spain, a responsibility he took up in 2009. financial area. In 2011 he also took responsibility In 2013 he added the Romanian market to over the investors' relations department. his specific responsibilities. 2013 In Review

pedro Soveral rodrigues Waldir Chao Jorge morgadinho human Resources property management and leasing, Conceptual design & Architecture Sonae Sierra brasil pedro Soveral Rodrigues joined Sonae Sierra in Waldir Chao joined Sonae Sierra brasil in Jorge morgadinho has been with Sonae Sierra 1998 as deputy manager of Centro Colombo. 2011 after 17 years in the brazilian retail and since 1994. he started his activity as an Since then he assumed different responsibilities real estate business. he has wide ranging architect for Centro Colombo. Following that he at the company including the Expansion role in responsibilities for the management, marketing was appointed deputy development manager Iberia, the leadership of the Safety & health and leasing of Sonae Sierra brasil's shopping for Centro vasco da Gama. From 1999 to 2005 area, as well as the responsibility of property centres, with a particular emphasis on the he was responsible for the development of management in Italy. In 2010 he was appointed evolution of the day-to-day management three shopping centres in Spain. In 2006 he as head of human Resources. he is a member aspects of each asset.aspects of each asset. started his activity as Expansion manager for of the Sustainability Steering Committee. new markets. Since 2010 he returned to the architecture department as head of the Conceptual design & Architecture.

manuel Guerra thanos efthymiopoulos development and Engineering Services Finance and back-office, Greece and Romania and development and Asset management, Greece

manuel Guerra joined Sonae Sierra in 1989 Thanos Efthymiopoulos joined Sonae Sierra in as development manager. Following several Greece as head of Finance and back office in roles in the developments business with march 2010. Since July 2011 he assumed also responsibility for a large number of Sonae the responsibilities for the development and Sierra’s projects in Iberia, in 2011 he was Asset management business and that of appointed General manager of developments Country’s representative for Greece and in Iberia with responsibility for engineering october 2013 he took also the charge of the services, and in 2012 he was promoted to Finance and back office functions in Romania. General manager for developments and Engineering Services.

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PORTUGAL GREECE LISBOA ATHENS PORTO ITALY ALGERIA MILAN KOUBA LUXEMBOURG BRAZIL LUXEMBOURG SÃO PAULO MOROCCO CHINA CASABLANCA SHANGHAI ROMANIA COLOMBIA BUCHAREST CALI SPAIN CROATIA MADRID ZAGREB THE NETHERLANDS GERMANY HOOFDDORP DÜSSELDORF TURKEY ISTANBUL

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