Sonae SGPS

Earnings Release • Jan 20, 2016

1 HIGHLIGHTSAND MESSAGES FROM THE CEOs

In 2015, Sonae Retail businesses registered positive turnover trends

SONAE MC

• 2015 turnover increased 0.8%, to €3,490 M
• turnover grew y.o.y. by 1.8% in the 4Q15 and 3.4% in December 2015
• Meu Super surpassed the 200 store target

"Sonae MC experienced an increase in turnover during the last quarter of 2015, principally in December, outperforming the trends of the previous quarters. This is the result of a large number of measures aimed at reinforcing the value proposition of Sonae MC, whilst improving price perception so as to be compatible with the real price positioning of our stores.

We have managed to achieve such a performance, in a year marked by a very demanding competitive environment in the Portuguese food retail market."

Luís Moutinho, CEO of Sonae MC

SONAE SR

• increased turnover by 0.4%, to €1,294 M and reached LfL of -1.1% in 2015
• improved consolidated sales per sqm by 4.1% in 2015
• Worten registered a strong 4Q15 in Portugal, reaching LfL sales growth of 3.4%

"Sonae SR had a particularly challenging year, driven by the difficulties in the sports and fashion division and the turnaround of the Spanish operations.

The sports and fashion division business was affected in 2015 by the negative impact of the Spring-Summer collection and the late start of winter. Despite this, we began to see some encouraging signs in the last quarter of the year.

In Portugal, the electronics business reinforced its market leadership and improved top line performance in the last quarter of the year. In Spain, where we have been implementing a complex reorganisation plan, turnover increased, in spite of the reduction in square metres. I would particularly like to highlight the recent store refurbishment of Worten Sant Antoni, in Barcelona, as an example of a successful new store concept."

Miguel Mota Freitas, CEO of Sonae SR

2 SALES PERFORMANCE

Turnover
Million euros	2014	2015	y.o.y	4Q14	4Q15	y.o.y
Sonae Retail	4,814	4,850	0.7%	1,316	1,334	1.4%
Sonae MC	3,461	3,490	0.8%	924	941	1.8%
Sonae SR	1,290	1,294	0.4%	376	377	0.2%
Other 1	63	65	3.6%	16	16	3.2%

Sonae MC turnover – yearly and quarterly performance

Sonae Retail turnover increased by 0.7% in 2015, to €4,850 M, with all of the businesses contributing positively. ¹

Sonae MC turnover reached €3,490 M, benefiting from store network expansion, mostly through an increase in convenience stores. During the last year, Sonae MC opened 11 Continente Bom Dia and 2 Continente Modelo stores, increasing the number of square metres by 3.5% when compared to 2014. In quarterly terms, turnover increased by 1.8%, to €941 M, benefiting from Continente's special Christmas campaign.

On a like-for-like basis, the 4Q15 showed a positive trend when compared to the previous quarters of 2015, improving from -2.9% in the 3Q15 to -0.2% in the 4Q15, despite the very strong competitive environment seen in the Portuguese food retail market. Most importantly, it should be noted that LfL sales growth was 1.0% in December 2015, equivalent to a turnover growth of 3.4%.

The number of Meu Super stores has continued to grow, reaching 205 stores and posting LfL sales growth of 5.7% in 2015. In addition to increasing Sonae MC's convenience store networks through a capital light approach, Meu Super has been contributing towards the revival and modernisation of traditional food retail in Portugal.

Some of the most important milestones of the year are as follows:

• the positive performance of Sonae MC's e-commerce division, which increased turnover by 7.9% y.o.y.. With the intention of supporting this operation, Sonae MC opened an e-commerce warehouse in the Lisbon area, in December. Furthermore, in keeping with our principles of fostering digital innovation, Continente online launched an app designed for smartphones and tablets in the 4Q15;
• the launch of Cartão Universo, a credit card with an innovative value proposition that combines new payment solutions with new loyalty features;
• the company's adjustment in price communication, aimed at improving price perception, coupled with the launch of improvement programmes focused on new promotions, on our own brand portfolio, perishables and services.

¹ In the retail business identified as 'Other', Sonae is including the turnover performance of Maxmat. In 2015, Maxmat increased turnover by 3.6%, to €65 M, benefiting from the success of its discount positioning.

2SALES PERFORMANCE (continued)

Turnover - Sonae SR
Million euros	2014	2015	y.o.y.		4Q14 4Q15 y.o.y.
Turnover	1,290	1,294	0.4% 376		377	0.2%
Portugal	930	917	-1.5% 278		278	0.2%
International 1	359	378	5.1%	99	99	0.2%

Sonae SR turnover – yearly and quarterly performance

Sonae SR turnover – international sales per square metre

Sonae SR turnover totalled €1,294 M, with the positive contribution of the international markets compensating for the evolution of the Portuguese unit, with the latter impacted by the performance of the fashion division mostly during the first quarters of 2015. Nevertheless, despite the unfavourable weather conditions leading to a late start in the season, the Autumn-Winter collection showed positive signs in the 4Q15, particularly in the baby wear division. The electronics division in Portugal posted strong results with Worten reaching LfL sales growth of 3.4% in the 4Q15 and reinforcing its position in the Portuguese consumer electronics market, further increasing market share by approximately 0.6 p.p. 2 .

Sonae SR sales per sqm continued their increasing trend, averaging 4.1% in 2015. There was a decrease from 522 to 505 in the number of company operated stores, equivalent to a reduction of 5.7% in sqm.

The consolidated International unit increased turnover by 5.1% y.o.y., to €378 M, growing sales per square metre by approximately 12.1%, driven by the positive trends of the electronics and sports divisions in Spain. In electronics, the business is benefiting not only from the market tailwinds but also, and more specifically, from the optimisation of the store portfolio along with the expansion of the new store concept, supported by the omni-channel approach. In sports, sales have continued to grow, reaching 5.2% on a like-for-like basis in 2015, proving that the measures implemented over the last quarters are driving positive results.

Some of the most important milestones of the year are as follows:

• the acquisition of Losan, in November 2015, a company which is specialised in wholesale kids wear with a strong international presence and key expertise in the textile value chain. Losan sales were already fully consolidated in Sonae SR accounts as of December 2015, with minor impact;
• Worten has been proving its success path in Spain, particularly with the newest store concept implemented in St. Antoni (Barcelona);
• the implementation of the Omni-channel strategy in Worten is showing very positive results, with a completely integrated system strongly converting online sales to offline sales and vice-versa. Omni-channel represented 21.4% of Worten sales and grew by 33.5% during 2015.

¹Includes sales to franchisees.

² According to GFK survey YTD: approx. +0.6 p.p. (until November 2015) market share for Worten Portugal.

3 NUMBER OF STORES AND SALES AREA

	No. of stores					Sales area ('000 sqm)
	31 Dec 2014	stores opened	M&A	banner changed	stores closed	31 Dec 2015	31 Dec 2014	stores opened (3)	M&A	banner changed	stores closed	31 Dec 2015
Sonae MC	640	120	0	0	-14	746	639	3 7	0	0	-2	673
Company operated (1)	478	3 6	0	0	-5	509	595	2 4	0	0	0	619
continente	4 0	0	0	0	0	4 0	284	-1	0	0	0	283
continente modelo	121	2	0	0	0	123	241	5	0	0	0	246
continente bom dia	4 1	1 1	0	0	0	5 2	4 2	1 6	0	0	0	5 8
well's	147	8	0	0	-3	152	1 3	3	0	0	0	1 6
bom bocado / bagga	102	9	0	0	0	111	6	1	0	0	0	6
note / make notes	2 0	6	0	0	-1	2 5	6	1	0	0	0	6
other (2)	7	0	0	0	-1	6	4	0	0	0	0	4
Franchising	162	8 4	0	0	-9	237	4 3	1 3	0	0	-2	5 4
continente modelo	7	0	0	0	0	7	1 7	0	0	0	0	1 7
meu super	140	7 3	0	0	-8	205	2 5	1 2	0	0	-2	3 5
well's	9	6	0	0	0	1 5	1	0	0	0	0	1
bom bocado / bagga	4	1	0	0	0	5	0	0	0	0	0	0
note	2	4	0	0	-1	5	0	0	0	0	0	1
Sonae SR	595	4 4	0	0	-54	585	398	6	0	0	-27	377
Company operated (1)	522	1 6	0	0	-33	505	377	1	0	0	-21	357
Electronics	228	8	0	0	-9	227	199	-1	0	0	-9	189
Portugal	181	1	0	0	-5	177	123	-4	0	0	-1	118
worten	139	0	0	0	-1	138	121	-4	0	0	-1	116
worten mobile	4 2	1	0	0	-4	3 9	1	0	0	0	0	1
Spain	4 7	7	0	0	-4	5 0	7 6	3	0	0	-8	7 2
worten	4 7	7	0	0	-4	5 0	7 6	3	0	0	-8	7 2
Sports	111	3	0	0	-6	108	101	1	0	0	-6	9 5
Portugal	7 7	0	0	0	-2	7 5	6 4	-1	0	0	-1	6 2
sport zone	7 7	0	0	0	-2	7 5	6 4	-1	0	0	-1	6 2
Spain	3 4	3	0	0	-4	3 3	3 6	2	0	0	-5	3 3
sport zone	3 4	3	0	0	-4	3 3	3 6	2	0	0	-5	3 3
Fashion	183	5	0	0	-18	170	7 8	1	0	0	-6	7 2
Portugal	146	2	0	0	-2	146	6 7	0	0	0	-1	6 6
mo	108	2	0	0	-2	108	5 5	0	0	0	-1	5 4
zippy	3 8	0	0	0	0	3 8	1 3	0	0	0	0	1 2
Spain	3 5	3	0	0	-14	2 4	1 0	1	0	0	-4	7
zippy	3 5	3	0	0	-14	2 4	1 0	1	0	0	-4	7
Turkey	2	0	0	0	-2	0	1	0	0	0	-1	0
zippy	2	0	0	0	-2	0	1	0	0	0	-1	0
Franchising	7 3	2 8	0	0	-21	8 0	2 0	6	0	0	-5	2 1
Electronics	4	0	0	0	0	4	2	0	0	0	0	2
Portugal	4	0	0	0	0	4	2	0	0	0	0	2
worten	4	0	0	0	0	4	2	0	0	0	0	2
Sports	4	5	0	0	0	9	2	2	0	0	0	4
Portugal	3	1	0	0	0	4	2	0	0	0	0	2
sport zone	3	1	0	0	0	4	2	0	0	0	0	2
Spain	1	0	0	0	0	1	0	0	0	0	0	0
sport zone	1	0	0	0	0	1	0	0	0	0	0	0
India	0	3	0	0	0	3	0	1	0	0	0	1
sport zone	0	3	0	0	0	3	0	1	0	0	0	1
France	0	1	0	0	0	1	0	1	0	0	0	1
sport zone	0	1	0	0	0	1	0	1	0	0	0	1
Fashion	6 5	2 3	0	0	-21	6 7	1 7	4	0	0	-5	1 5
Portugal (mo)	5	0	0	0	0	5	1	0	0	0	0	1
Other countries	6 0	2 3	0	0	-21	6 2	1 5	4	0	0	-5	1 4
zippy (4)	4 7	1 7	0	0	-14	5 0	1 0	2	0	0	-3	1 0
mo (5)	1 3	6	0	0	-7	1 2	5	2	0	0	-3	4
Maxmat	3 0	0	0	0	0	3 0	5 6	-2	0	0	0	5 4
(1) Includes Joint-Ventures;

(2) Includes outlet;

(3) Includes changes in sales area due to refurbishments;

(4) Includes Turkey, Saudi Arabia, Egypt, Kazakhstan, Azerbaijan, Dominican Republic, Malta (2014), United States (2014), Venezuela, Morocco, Lebanon, Qatar, St. Maarten, Jordan, Armenia, Chile, Georgia, Equator, Cyprus, Kurdistan, Libya, Tunisia, Philippines and Mozambique;

(5) Includes Spain, Malta (2014), Bulgaria, Mozambique and Saudi Arabia.

4 ADDITIONAL INFORMATION

		No. of stores			Sales area ('000 sqm)
Breakdown per geographic area	31 Dec 2014	31 Dec 2015	y.o.y.	31 Dec 2014	31 Dec 2015	y.o.y. (%)
Portugal	1,086	1,187	101	954	978	2.6%
Sonae MC	478	509	31	595	619	3.9%
Sonae MC (franchising)	162	237	75	43	54	24.9%
Sonae SR	404	398	-6	254	246	-3.3%
Sonae SR (franchising)	12	13	1	5	5	7.3%
other	30	30	0	56	54	-3.3%
International	179	174	-5	139	127	-8.8%
Sonae SR	118	107	-11	123	111	-10.1%
Sonae SR (franchising)	61	67	6	15	16	2.2%
Total	1,265	1,361	96	1,093	1,105	1.1%

Preliminary turnover & growth
Million euros	2014	2015	y.o.y.	4Q14	4Q15	y.o.y.
Turnover
Sonae Retail	4,814	4,850	0.7%	1,316	1,334	1.4%
Sonae MC	3,461	3,490	0.8%	924	941	1.8%
Sonae SR	1,290	1,294	0.4%	376	377	0.2%
Portugal	930	917	-1.5%	278	278	0.2%
International1	359	378	5.1%	99	99	0.2%
Other	63	65	3.6%	16	16	3.2%
LFL sales growth (%)
Sonae MC	-2.1%	-1.7%	-	-2.8%	-0.2%	-
Sonae SR	4.6%	-1.1%	-	-1.2%	-0.1%	-

1 Includes sales to franchisees.

Preliminary turnover & growth - quarterly trend
Million euros	1Q14	2Q14	3Q14	4Q14	1Q15	2Q15	3Q15	4Q15
Turnover
Sonae Retail	1,092	1,142	1,264	1,316	1,107	1,138	1,270	1,334
Sonae MC	787	839	911	924	793	839	917	941
Sonae SR	291	288	334	376	299	283	335	377
Portugal	201	208	243	278	203	200	235	278
International1	91	79	90	99	96	83	100	99
Other	14	15	18	16	15	16	19	16
LFL sales growth (%)
Sonae MC	-2.3%	-0.3%	-2.9%	-2.8%	-1.2%	-2.4%	-2.9%	-0.2%
Sonae SR	6.0%	10.8%	5.1%	-1.2%	2.6%	-3.0%	-3.5%	-0.1%

1 Includes sales to franchisees.

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SAFE HARBOUR

This document may contain forward-looking information and statements, based on management's current expectations or beliefs. Forward-looking statements are statements that should not be regarded as historical facts.

These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to, changes in regulation, industry and economic conditions; and the effects of competition. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors and analysts, and generally all recipients of this document, are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. You are cautioned not to put undue reliance on any forward-looking information or statements. We do not undertake any obligation to update any forward-looking information or statements.

Report available at Sonae's institutional website www.sonae.pt

Media and Investor Contacts

Patrícia Vieira Pinto Head of Investor Relations pavpinto@sonae.pt Tel.: + 351 22 010 4794

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