Sonae SGPS

Earnings Release • Mar 16, 2010

Maia, Portugal, 12nd March 2010

Sonae Sierra recorded a Direct net profit of €76.8 million in 2009, a growth of 20% versus last year

• Direct Income grew 4% to €311.2 million in 2009
• Net Operating Result grew 6% to €180.3 million in the same period
• Occupancy levels of the portfolio stood at 94.5%
• NAV of €1.23 billion
• Open Market Value of Assets under Management reach €6.34 billion
• Two new shopping centres inaugurated in Germany and Brazil
• Successful placement of Parque D. Pedro Fund through a public offer

Sonae Sierra has consolidated, during 2009, its expansion and internationalization strategy, and closed the year with a portfolio of 51 shopping centres in operation, spread throughout seven countries, with a total Gross Lettable Area (GLA) of about 2 million m².

The Company Net Consolidated Profit in 2009 was negative of €159.9 million compared with a negative Consolidated Result of €185.5 million in the same period of last year.

The Net Consolidated Profit in 2009 was driven by the Indirect Result that is adversely affected by the continuous increases in market capitalization yields in Europe. This is caused by the negative climate in the property 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.

In the last months of 2009 we have started to observe a reduction of the pace in the increase of the yields and, at the same time, there were operational improvements in the Portuguese and German portfolio, but still insufficient to compensate the yield effect.

In Brazil, it should be highlighted the continuous improvement of the operational activity, as well as, the yields decrease in some assets which allowed us to balance the yield effect in the European portfolio. In 2009 Sonae Sierra's Direct Net Profit reached €76.8 million (+20%), compared to the €64.1 million in the same period of 2008 due to the combination of three factors: (i) increase in the portfolio; (ii) the cut cost efforts implemented by the Company in 2009; and (iii) the lower interest rates.

The Direct Income from Investments is 4% above 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 openings in 2009 of Manauara, in Brazil, and Loop5, in Germany which more than compensate the Development services decrease due to the reduced number of projects under developments.

The Company's Net Operating Result reached €180.3 million in 2009, 6% above the same period of last year.

Net Asset Value

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 Non-listed 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 31 December 2009, was €1.23 billion, corresponding to a NAV per share of €37.78.

	(€ 000)
Contribution to consolidated NAV
Sierra Investments	731.451
Sierra Developments	190.858
Sonae Sierra Brazil	289.489
Sierra Management	4.327
Cash & Others	12.371
Total	1.228.497

Two shopping centres inaugurated and three 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.

Following the successful opening in Brazil, of Manauara Shopping (Manaus) last April, the company has inaugurated in October Loop5 (Weiterstadt, Germany), representing an investment of €265 million, the shopping centre had more than one million visits in just two weeks which give us a strong confidence for its future performance. Additionally the Company successfully concluded the expansion of GuimarãeShopping and the renovation of Centro Colombo and AlbufeiraShopping, all in Portugal. In Italy we also concluded the renovation of Valecenter in Venice.

At the end of 2009, the Company continued to develop three new shopping centres and has in the development pipeline a total of 12 new projects in Portugal, Italy, Germany, Greece, Romania and Brazil.

In Portugal, Sonae Sierra is currently developing LeiriaShopping (Leiria), an investment of €79 million, scheduled to open in March of 2010 and in Italy the Company has just started the construction works of Le Terrazze, in La Spezia. Finally, in Brazil, Sonae Sierra Brasil has just started the construction of Ubêrlandia Shopping, an investment of €62 million, as well as the expansions of Parque D.Pedro, in Campinas, and Shopping Metrópole, in São Bernardo do Campo.

International recognition during 2009

During the year we were rewarded for our leadership as developers and managers of environmentally advanced, sustainable shopping centres. Among the awards received we highlight:

• Ranked first for the fourth time in the "Corporate Climate Responsibility: ACGE Sectorial Index" by Euronatura
• Winner of the 2009 Quotidiano Immobiliare Daily Real Estate Award as best company in the Retail and Commercial Real Estate sector in Italy
• "Green Centre" concept acknowledged as excellent at the European Commission's Sustainable Energy Europe Awards

• Winner of Euromoney magazine's award as "Best Developer" in Portugal and Spain

• Personæ Project voted Europe's Best Risk Training Programme at European Risk Management Awards 2009

• Colombo Towers were considered the best office project in Portugal in the Portuguese Real Estate Fair SIL.

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

Sonae Sierra				(un-audited accounts)
Consolidated Profit and Loss Account (€ 000)	2009	2008 PF *	2008	% 09/08PF
Direct Income from Investments	311.190	299.143	315.160	4%
Direct costs from investments	130.936	129.725	135.299	1%
Net Operating Result	180.254	169.418	179.861	6%
Net financial costs	82.527	79.529	88.312	4%
Other non-recurrent income/cost	-2.219	-5.463	-2.745	59%
Direct profit before taxes	95.508	84.426	88.804	13%
Corporate tax	18.729	20.292	21.035	-8%
Direct net profit	76.778	64.134	67.769	20%
Gains realized on sale of investments	4.161	19.410	19.410	-79%
Impairment & Development funds at risk provision	-6.384	-65.832	-65.832	90%
Value created on investments	-291.787	-223.497	-243.975	-31%
Indirect income	-294.009	-269.918	-290.396	-9% #DIV/0!
Deferred tax	-57.324	-20.256	-24.443	-183% #DIV/0!
Indirect net profit	-236.685	-249.662	-265.954	5% #DIV/0!
Net profit before minorities	-159.907	-185.528	-198.184	14%
Attributable to :
Equity holders	-110.985	-106.393	-116.126	-4%
Minority interests	-48.922	-79.135	-82.058	38%

* 2008 PF - with the Sierra Portugal Fund consolidated by the proportional method since January 2008.

Sonae Sierra	(un-audited accounts)
Consolidated Balance Sheet (€ 000)	31-12-2009	31-12-2008	Var. (09 - 08)
Investment properties	3.595.147	3.629.503	-34.355
Properties under development and others	265.852	352.171	-86.319
Other assets	196.459	192.516	3.943
Cash & Equivalents	50.674	117.378	-66.704
Total assets	4.108.133	4.291.567	-183.434
Net worth Minorities	994.533 407.232	1.103.109 419.990	-108.576 -12.7580
Bank loans Deferred taxes Other liabilities	1.945.667 469.012 291.688	1.946.703 516.502 305.262	-1.036 -47.490 -13.574
Total liabilities	2.706.368	2.768.468	-62.100
Net worth, minorities and liabilities	4.108.133	4.291.567	-183.434

SECONDECIERRA

Sierra Investments			(un-audited accounts)
Profit & Loss Account (E 000)	2009	2008	% 09/08
Retail Net Operating Margin	170.549	164.496	4%
Parking Net Operating Margin	3.672	3.548	3%
Co-generation Net Operating Margin	1.340	1.385	$-3%$
Shopping Centre Net Operating Income	175.561	169.429	4%
Offices Net Operating Income	214	576	$-63%$
Asset Management Net Operating Income	5.590	10.391	$-46%$
Net Operating Income (NOI)	181.365	180.396	$1\%$
Recurrent net financial costs/(income)	75.987	83.191	$-9%$
Non-Recurring costs/(income)	3.115	2.449	27%
Corporate Taxes	17.979	19.996	$-10%$
Direct Profit	84.284	74.760	13%
Realized Property Profit	608	4.699	$-87%$
Non-Realised Property Profit	(260.584)	(266.248)	2%
Deferred tax	(59.163)	(40.035)	$-48%$
Indirect Profit	(200.813)	(221.513)	9%
Net Profit for the Period	(116.528)	(146.754)	21%
Attributable to:
Equity holders	(69.610)	(71.509)	3%
Minority interests	(46.918)	(75.245)	38%

Consolidated Balance Sheet (€ 000)	31-12-2009	31-12-2008	Var. $(09 - 08)$
Investment properties & others	3.236.562	3.454.681	$-218.118$
Other assets	178.219	145.985	32.235
Cash & Equivalents	77.297	183.667	$-106.371$
Total assets	3.492.078	3.784.333	$-292.254$
Net worth	688.649	794.288	$-105.639$
Minorities	365.496	412.839	$-47.343$
Bank loans	1.788.097	1.807.633	$-19.536$
Deferred taxes	407.973	480.566	$-72.592$
Other liabilities	241.864	289.008	$-47.144$
Net Worth, minorities and liabilities	3.492.078	3.784.333	$-292.254$

SECONDECIERRA

Sierra Developments	(un-audited accounts)
Profit & Loss Account (E 000)	2009	2008	% 09/08
Project Development Services Rendered	6.535	14.301	$-54%$
Value created in projects	(43.606)	(139.541)	69%
Operating Income	(37.071)	(125.240)	70%
Operating costs	26.746	31.813	$-16%$
Net Operating Income (NOI)	(63.817)	(157.053)	59%
Depreciation and provisions	(9)	226	$-104%$
Net financial costs/(income)	5.103	4.525	13%
Non-Recurring costs/(income)	352	0
Corporate taxes	395	(17.936)	102%
Net Profit for the Period	(69.660)	(143.868)	52%
Attributable to:
Equity holders	(69.660)	(143.868)	52%
Minority interests	0	0
Consolidated Balance Sheet (€ 000)	31-12-2009	31-12-2008	Var. $(09 - 08)$
Properties under development	245.479	289.855	$-44.376$
Other assets	109.407	131.642	$-22.235$
Cash & Equivalents	2.724	68.021	$-65.297$
Total assets	357.610	489.518	$-131.908$
Net worth	$-5.526$	62.940	$-68.466$
Minorities	0	0	0
Bank loans	33.315	62.999	$-29.683$
Shareholder loans	202.960	312.600	$-109.640$
Deferred taxes Other liabilities	4.464 122.396	992 49.987	3.472 72.409
Net worth, minorities and liabilities
	357.610	489.518	$-131.908$

Sierra Management (un-audited accounts)

Profit & Loss Account (€ 000)	2009	2008	% 09/08
Total income from management services	33.923	35.619	-5%
Operating costs	28.467	30.399	-6%
Net operating income (NOI)	5.455	5.220	5%
Net financial costs/(income)	(1.256)	(1.713)	27%
Non-recurring costs/(income)	569	956	-40%
Corporate taxes	2.378	1.873	27%
Net Profit for the period	3.764	4.105	-8%
Atributable to :
Equity holders	3.666	4.006	-8%
Minority interests	98	99	-1%

Consolidated Balance Sheet (€ 000)	31-12-2009	31-12-2008	Var. (09 - 08)
Other assets	34.343	31.357	2.986
Cash & Equivalents	28.148	24.015	4.133
Total assets	62.491	55.372	7.119
Net worth	4.327	4.453	-126
Minorities	134	127	7
Other liabilities	58.030	50.792	7.238
Net Worth, minorities and liabilities	62.491	55.372	7.119

The financial statements of Sonae Sierra Brazil correspond to the consolidated accounts of the European parent plus the Brazilian business (50% of these consolidated accounts corresponds to the contribution to Sonae Sierra).

Sonae Sierra Brazil			(un-audited accounts)
Profit & Loss Account (€ 000)	2009	2008	% 09/08
Retail Operating Margin	39.055	32.547	20%
Parking Net Operating Margin	2.493	991	152%
Shopping Centre Net Operating Margin	41.548	33.537	24%
Total Income from Services Rendered	10.266	8.023	28%
Overheads	10.844	12.944	-16%
Net Operating Income (NOI)	40.970	28.616	43%
Net financial costs/(income)	5.376	(441)	1319%
Non-recurring costs/(income)	5.053	2.166	133%
Corporate taxes	4.680	5.550	-16%
Direct Profit	25.861	21.342	21%
Realised Property Profit	6.405	1.131	466%
Non-Realised Property Profit	63.334	72.578	-13%
Deferred tax	15.600	24.650	-37%
Indirect profit	54.139	49.059	#DIV/0! 10%
Net Profit for the Period	80.000	70.401	14%
Atributable to:
Equity holders	71.175	68.300	4%
Minority interests	8.825	2.100	320%
Consolidated Balance Sheet	31-12-2009	31-12-2008	Var.
(€ 000)			(09 - 08)
Properties	759.144	461.041	298.103
Other assets	30.044	24.072	5.972
Cash & Equivalents	37.619	3.929	33.690
Total Assets	826.807	489.042	337.766
Net worth	540.912	349.812	191.100

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 2 million m2. Sonae Sierra has 3 projects under construction and 9 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2009, its centres welcomed more than 436 million visits.

Minorities 83.203 13.332 69.871 Bank loans 68.511 41.980 26.530 Deferred taxes 112.529 71.021 41.508 Other liabilities 21.653 12.896 8.756 Net Worth, minorities and liabilities 826.807 489.042 337.766