Sonae SGPS

Earnings Release • Aug 6, 2009

Maia, Portugal, August 5th 2009

Sonae Sierra recorded a Direct Net Profit of €35.2 million in the first semester of 2009, a growth of 6% versus the first semester of 2008

• Direct Income of €150.5 million (+1% versus the first semester of 2008)
• Net Operating Margin grew 2% to €85.9 million
• Net Profit attributable to Equity Holders of -€94.2 million
• Manauara Shopping was successfully inaugurated in Brazil
• Two new projects and one expansion under construction
• Distinguished with three awards in the second quarter

Sonae Sierra Equity Holder's Consolidated Net Profit in the first semester of 2009 was negative of €94.2 million compared with a Consolidated Net Profit of €16.2 million in the same period of last year.

This variation in the Equity Holder's Consolidated Net Profit is mainly driven by the Indirect Net Profit that was adversely affected by the continuous increases in market capitalization yields in Europe, although there were already operational improvements in the Portuguese and German portfolio, but still insufficient to compensate the yield effect.

In the same period Sonae Sierra's Direct Net Profit reached €35.2 million, compared to the €33 million in the same period of 2008.

The Shopping Centre Operating Income is 7% above the first half of 2008 mostly due to the increase in the portfolio – the openings of 2008 in Europe: Freccia Rossa, Plaza Mayor Shopping, Gli Orsi and Pantheon Plaza; and the opening of Manauara in 2009, in Brazil.

The Company's Net Operating Margin reached €85.9 million in the first semester of 2009, 2% above the same period of last year.

The Company's Results were affected by what happened at the level of Indirect Results. In this area, the Company's Equity Holders booked a loss of €113.9 million at the end of the first semester of 2009, whereas they had booked a loss of €7.7 million in the same period of 2008.

The market value of the investment properties continues to be affected by the negative climate in the properties' markets of most of the developed countries where the Company operates. This context led to an upwards shift of the capitalization yields applied in the valuations carried out on assets in those countries, this increase implying a reduction in the value of the corresponding property.

Value Metrics

The Company measures its performance, in a first instance, on the basis of changes in Net Asset Value (NAV) plus dividends distributed. The Company calculates its NAV on the basis of the guidelines published in 2007 by INREV (European Association for Investors in Nonlisted Real Estate Vehicles), an association of which the Company is a member.

On the basis of this methodology, the NAV of Sonae Sierra, as of the 30th June 2009, was €1.25 billion, corresponding to a NAV per share of €38,38.

	(€ 000)
Contribution to consolidated NAV
Sierra Investments	678.020
Sierra Developments	275.441
Sonae Sierra Brazil	239.602
Sierra Management	2.206
Cash & Others	52.685
Total consolidated NAV	1.247.955

Further to this, the Company uses a second set of value metrics, the Net Operating Margin (NOM) generated by its service activities. In the first semester of 2009, the figures were:

		(€ 000)
	Net Operating Margin
	6M 09	6M08 PF*
Developments	-40.152	-27.516
Asset Management	3.686	6.263
Property Management	2.050	2.833
Total	-34.416	-18.420
Consolidated	85.879	84.590

The activities Asset Management and Property Management show an adverse performance, basically as a consequence of the value decrease of the existing portfolio and lower letting services.

The Developments' NOM presented has two main components: (i) the operational activity related with the supply of development services to the Company's projects and (ii) the value added in the period to projects during the development phase and the value created on the openings of the last two years.

As a result of the decrease in value of the shopping centres inaugurated in recent years, and the reduced level of services delivered due to the slowdown in the development activity, the Developments NOM show a loss of €40.1 million.

One shopping centre inaugurated and two more under construction

Sonae Sierra's growth and expansion strategy continues although the company has adjusted the development timings to the evolution of the financial and retail markets.

In Brazil, Sonae Sierra concluded with success the development of Manauara Shopping (Manaus), representing an investment of €88 million, which was inaugurated on the 6th of April with almost 100% of the GLA let.

At the end of the first six months of 2009, the Company continued to build two new shopping centres and one expansion and has in the development pipeline a total of 14 new projects in Portugal, Italy, Germany, Greece, Romania and Brazil.

In Portugal, Sonae Sierra is currently developing LeiriaShopping (Leiria), an investment of €75 million, and the expansion of GuimarãeShopping (Guimarães) which is planned to open in the last quarter of 2009, with a renewed tenant-mix including a new FNAC shop.

In Germany, the company is finalising Loop 5 (Weiterstadt) which is due to open on the 9th of October of 2009. Representing an investment of €265 million the shopping centre has already let 95% of its GLA.

Three new Awards in the second quarter of 2009

The company's bet on the development of a Safety & Health culture across the whole company and its shopping centres was recognized externally, in May, with the European Risk Management Awards in the "Best Risk Training Programme" category, an initiative of British magazine "Strategic Risk", which rewards the best and most innovative actions in the risk management area.

In April, Sonae Sierra's shopping centre 8ª Avenida received the merit award in the "Best Medium New Centre" category, given by the International Council of Shopping Centres in their annual European conference.

Finally, in July, the Portuguese Magazine "Construir" considered Sonae Sierra as the best Real Estate Developer Company in the Construir Awards.

Sonae Sierra's Consolidated Profit and Loss Account, and Consolidated Balance Sheet

Sonae Sierra				(un-audited accounts)
Consolidated Profit and Loss Account (€ 000)	6M 09	6M 08	6M08 PF*	% 09/08 PF
Direct Income from Investments	150.549	157.121	149.167	1%
Operating costs	59.963	63.874	61.344	-2%
Other costs	4.707	3.282	3.233	46%
Direct costs from investments	64.671	67.156	64.577	0%
Net Operating Margin	85.879	89.965	84.590 -	2%
Depreciation	1.067	1.015	1.015	5%
Net financial costs	42.385	43.742	40.567	4%
Other non-recurrent income/cost	2.751	-716	-716	-
Direct profit before taxes	45.178	44.493	42.293 -	7%
Corporate tax	10.028	9.624	9.250 -	8%
Direct net profit	35.150	34.869	33.043 -	6%
Gains realized on sale of investments	261	13.595	13.595	-98%
Assets at risk provision	-6.440	-4.570	-4.570	-41%
Value created in investments	-213.125	-42.470	-42.913	-397%
Indirect income	-219.304	-33.445	-33.888 -	-
Deferred tax	-45.410	87	-478 -	-
Indirect net profit	-173.894	-33.532	-33.410 -	-
Net profit before minorities	-138.744	1.337	-368	-
Attributable to :				-
Equity holders	-94.183	17.479	16.216	-
Minority interests	-44.561	-16.142	-16.583	-169%

6M08 PF* is restated considering the Sierra Portugal Fund companies only at 42% contribution

Sonae Sierra			(un-audited accounts)
Consolidated Balance Sheet (€ 000)	30-06-2009	31-12-2008	Var. (09 - 08)
Investment properties	3.524.427	3.629.503	-105.076
Properties under development and others	364.488	352.171	12.318
Tax shelter	19.478	18.111	1.368
Other assets	165.315	174.406	-9.090
Cash & Equivalents	54.857	117.378	-62.521
Total assets	4.128.566	4.291.567	-163.002
Net worth Minorities	985.907 372.765	1.103.109 419.990	-117.203 -47.225
Bank loans	1.941.551	1.946.703	-5.152
Shareholder loans from minorities	27.183	27.167	16
Deferred taxes	475.257	516.502	-41.245
Other liabilities	325.902	278.095	47.807
Total liabilities	2.769.894	2.768.468	1.426
Net worth, minorities and liabilities	4.128.566	4.291.567	-163.002

Note: the first semester 2008 was restated to include the Sierra Portugal Fund by the proportional method.

Sonae Sierra's Consolidated Profit and Loss Account, and Consolidated Balance Sheet by business

Sierra Investments			(un-audited accounts)
Profit & Loss Account	6M 09	6M 08	% 09/08
(€ 000)
Fixed Rental Income	101.614	100.486	1%
Turnover Rental Income	1.913	3.173	-40%
Key-Money Income	3.049	3.516	-13%
Other Income	3.713	4.472	-17%
Retail Operating Income	110.290	111.648	-1%
Property Management Services	5.016	5.748	-13%
Asset Management Services	8.577	12.163	-29%
Letting & Promotion	823	849	-3%
Capital Expenditures	1.250	1.843	-32%
Other Costs	10.807	9.881	9%
Retail Operating Costs	26.472	30.485	-13%
Retail Net Operating Margin	83.817	81.163	3%
Parking Net Operating Margin	1.486	1.482	0%
Co-generation Net Operating Margin	688	637	8%
Shopping Centre Net Operating Income	85.991	83.281	3%
Offices Net Operating Income	98	100	-2%
Income from Asset Management Services	10.002	12.683	-21%
Overheads	6.316	6.419	-2%
Asset Management Net Operating Income	3.686	6.263	-41%
Net Operating Income (NOI)	89.776	89.645	0%
Depreciation and Provisions	2.402	1.223	96%
Recurrent net financial costs/(income)	39.025	42.234	-8%
Non-Recurring costs/(income)	-2.363	-101	-
Results Before Corporate Taxes	50.711	46.289	10%
Corporate Taxes	9.525	10.134	-6%
Direct Profit	41.185	36.154	14%
Realized Property Profit	-428	2.078	-121%
Non-Realised Property Profit	-163.703	-56.738	-189%
Total Indirect Income from Investments	-164.131	-54.661	-200%
Deferred tax	-37.965	-4.682	-
Indirect Profit	-126.166	-49.979	-152%
Net Profit for the Period	-84.981	-13.824	-
Attributable to :
Equity holders	-45.047	-80	-
Minority interests	-39.934	-13.744	-191%
Sierra Investments			(un-audited accounts)
Consolidated Balance Sheet	30-06-2009	31-12-2008	Var.
(€ 000)			(09 - 08)
Investment properties & others Tenants	3.253.773 23.097	3.454.681 19.820	-200.908 3.276
Deferred taxes	16.500	15.871	629
Other assets	130.351	110.293	20.057
Group companies	44.678	147.429	-102.751
Cash & Equivalents	26.788	36.238	-9.450
Total assets	3.495.187	3.784.333	-289.146
Net worth Minorities	714.840 366.164	794.288 412.839	-79.448 -46.675
Bank loans	1.789.510	1.807.633	-18.123
Shareholder loans	27.855	35.096	-7.240
Deferred taxes	431.945	480.566	-48.620
Group companies - Sierra Developments	50.104	88.535	-38.432
Other liabilities	114.769	165.377	-50.609
Total liabilities	2.414.183	2.577.206	-163.024
Net Worth, minorities and liabilities	3.495.187	3.784.333	-289.146

Sierra Developments (un-audited accounts)

Profit & Loss Account (€ 000)	6M 09	6M 08	% 09/08
Project Development Services Rendered	2.723	6.412	-58%
Value created in projects	-29.646	-18.585	-60%
Operating Income	-26.922	-12.173	-121%
Personnel costs	5.584	5.859	-5%
Other costs	7.645	9.484	-19%
Operating costs	13.229	15.343	-14%
Net Operating Income (NOI)	-40.152	-27.516	-46%
Depreciation and provisions	8	16	-49%
Net financial costs/(income)	3.104	2.572	21%
Profit Before Taxes	-43.264	-30.104	-44%
Corporate taxes	-1.924	-3.697	48%
Deferred tax	377	-4.385	109%
Net Profit for the Period	-41.717	-22.023	-89%
Attributable to :
Equity holders	-41.717	-22.023	-89%
Minority interests	0	0	-

Sierra Developments			(un-audited accounts)
Consolidated Balance Sheet (€ 000)	30-06-2009	31-12-2008	Var. (09 - 08)
Properties under development	333.070	289.855	43.215
Customers	1.564	2.556	-992
Group companies - Sierra Investments	50.104	88.535	-38.432
Other assets	20.889	40.550	-19.662
Group Companies	110.376	55.914	54.462
Cash & Equivalents	15.997	12.107	3.890
Total assets	531.999	489.518	42.481
Net worth Minorities	20.009 0	62.940 0	-42.932 0
Bank loans	87.208	62.999	24.209
Shareholder loans	320.168	312.600	7.568
Deferred taxes	1.366	992	374
Other liabilities	103.249	49.987	53.262
Total liabilities	511.990	426.577	85.413
Net worth, minorities and liabilities	531.999	489.518	42.481

Sierra Management			(un-audited accounts)
Profit & Loss Account (€ 000)	6M 09	6M 08	% 09/08
Property Management Income	14.373	14.647	-2%
Letting Services Income	1.260	2.159	-42%
Other income	1.261	1.357	-7%
Total income from management services	16.894	18.162	-7%
Operating costs	14.845	15.330	-3%
Net operating income (NOI)	2.050	2.833	-28%
Depreciation and Provisions	212	418	-49%
Net financial costs/(income)	-623	-888	30%
Non-recurring costs/(income)	-110	-30	-266%
Results Before Corporate Taxes	2.570	3.333	-23%
Corporate taxes	1.003	1.179	-15%
Net Profit for the period	1.567	2.154	-27%
Atributable to :
Equity holders	1.516	2.103	-28%
Minority interests	51	51	1%

Sierra Management			(un-audited accounts)
Consolidated Balance Sheet (€ 000)	30-06-2009	31-12-2008	Var. (09 - 08)
Net fixed assets	399	452	-53
Goodwill	4.257	4.663	-405
Tenants	19.873	16.317	3.556
Tax Shelter	858	731	127
Other assets	10.408	9.195	1.214
Short term investment in group companies	19.222	19.956	-734
Cash & Equivalents	4.040	4.059	-18
Total assets	59.059	55.372	3.687
Net worth Minorities	2.206 87	4.453 127	-2.247 -40
Shareholder Loans	50	140	-90
Other liabilities	56.716	50.652	6.064
Total liabilities	56.766	50.792	5.974
Net Worth, minorities and liabilities	59.059	55.372	3.687

Sonae Sierra Brazil	(un-audited accounts)
---------------------	-----------------------

un-audited accounts)
----------------------	--

Profit & Loss Account (€ 000)	6M 09	6M 08	% 09/08
Fixed Rental Income	16.768	15.666	7%
Turnover Rental Income	1.207	1.290	-6%
Key-Money Income	1.733	1.049	65%
Other Income	904	658	37%
Retail Operating Income	20.612	18.662	10%
Property Management Services	885	898	-1%
Letting & Promotion Services	510	351	45%
Other Costs	2.796	2.634	6%
Retail Operating Costs	4.191	3.883	8%
Parking Net Operating Margin	603	441	37%
Shopping Centre Net Operating Margin	17.025	15.220	12%
Income from Project Development Services	1.481	236	-
Income from Property Management Services	3.606	3.589	0%
Total Income from Services Rendered	5.087	3.825	33%
Overheads	6.860	5.331	29%
Net Operating Income (NOI)	15.252	13.715	11%
Depreciation	200	90	122%
Provisions	195	480	-59%
Net financial costs/(income)	1.795	-353	-
Non-recurring costs/(income)	9	719	-99%
Results Before Corporate Taxes	13.054	12.779	2%
Corporate taxes	2.068	2.594	-20%
Direct Profit	10.986	10.185	8%
Realised Property Profit	0	1.073	-
Non-Realised Property Profit	-8.084	53.059	-115%
Non-Realised Property Profit (Under Dev.)	1.731	8.823	-80%
Total Indirect Income from Investments	-6.353	62.955	-110%
Deferred tax	-4.242	20.125	-121%
Indirect profit	-2.111	42.830	-105%
Net Profit for the Period	8.875	53.015	-83%
Atributable to:
Equity holders	8.706	51.292	-83%
Minority interests	169	1.722	-90%

Sonae Sierra Brazil			(un-audited accounts)
Consolidated Balance Sheet (€ 000)	30-06-2009	31-12-2008	Var. (09 - 08)
Properties	593.118	461.041	132.077
Tenants	6.190	5.968	222
Deferred taxes	4.022	3.287	736
Other assets	20.797	14.817	5.980
Cash & Equivalents	4.255	3.929	326
Total Assets	628.382	489.042	139.340
Net worth	436.101	349.812	86.289
Minorities	16.883	13.332	3.551
Bank loans	74.733	41.980	32.752
Deferred taxes	81.261	71.021	10.240
Other liabilities	19.405	12.896	6.508
Total liabilities	175.398	125.898	49.500
Net Worth, minorities and liabilities	628.382	489.042	139.340

Corporate Centre			(un-audited accounts)
Profit & Loss Account (€ 000)	6M 09	6M 08	% 09/08
Services rendered	15.410	16.711	-8%
General supplies and services	7.698	9.363	-18%
Personnel costs	7.165	6.956	3%
Operating costs	14.863	16.319	-9%
Gross operating results	547	392	40%
Depreciation	548	431	27%
Recurrent operating results	-1	-39	97%
Non-Recurrent Operating Income/(costs)	1	39	-97%
Operating results	0	0	156%
Financial results	0	-415	100%
Results before corporate taxes	0	-415	100%
Corporate taxes	0	-110	-
Net profit for the period	0	-305	100%

Corporate Centre	(un-audited accounts)
Consolidated Balance Sheet (€ 000)	30-06-2009	31-12-2008	Var. (09 - 08)
Investments	985.432	980.062	5.370
Investments in group companies	777.484	777.484	0
Loans in group companies	207.948	202.578	5.370
Other assets	31.547	12.331	19.216
Short term loans (group)	230.906	236.853	-5.947
Deposits	1.463	58.059	-56.596
Total assets	1.249.348	1.287.305	-37.956
Net worth	930.681	948.837	-18.156
Group company loans	220.008	228.422	-8.414
Bank loans	1.377	15.000	-13.623
Bond loans	75.000	75.000	0
Other liabilities	22.282	20.046	2.236
Total liabilities	318.667	338.468	-19.801
Net Worth, minorities and liabilities	1.249.348	1.287.305	-37.956

Sonae Sierra, www.sonaesierra.com, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping and leisure centre industry. The Company owns 51 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of more than 1.9 million m2. Sonae Sierra has 3 projects under construction and 11 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2008, its centres welcomed more than 429 million visits.