2013 ECONOMIC, ENVIRONMENTAL AND SOCIAL REPORT

Transcription

1 < > 2013 ECONOMIC, ENVIRONMENTAL AND SOCIAL REPORT Specialists in creating SUSTAINABLE SHOPPING CENTRES

2 SONAE SIERRA 2013 Economic, Environmental and Social Report.01 < > contents About this Report 01 corporate overview Who We Are 02 CEO s Statement 03 The Year at a Glance 05 Our Company 08 Our Business Model and Strategy 14 Navigational buttons Please use buttons below to browse the document III < > Back to the Contents Previous page / Next page our performance in 2013 The Wider Context 21 Operational Performance 25 Consolidated Accounts 36 Future Outlook 44 Governance 46 Board Members and Executives 50 annex: global reporting initiative Introduction 54 General Standard Disclosures 55 Economic Aspects 68 Environmental Aspects 74 Labour Practices and Decent Work Aspects 105 Society Aspects 122 Product Responsibility Aspects 131 Independent Auditor s Review 140 Feedback Form 142 Offices 144 about this report We have long recognised that our long-term business viability is dependent upon a healthy reserve of natural resources and social cooperation. indeed, we believe that the economic, environmental and social dimensions of our business performance are inextricably linked. For this reason, we have sought to report against all three dimensions over the past ten years in accordance with gri guidelines. In line with the official launch of our new sustainability strategy in 2013, we have further evolved our approach to corporate reporting. Our new strategy focuses on creating long-term shareholder value by addressing significant global challenges which impact upon the continuous success of our business. Consequently, this report provides a fully integrated account of our business strategy and operational performance in 2013, demonstrating the alignment between our core business and sustainability goals. In order to develop a fully integrated report, we drew heavily upon the International Integrated Reporting Council s (IIRC) Framework on Integrated Reporting, which was released in As such, the Our Performance section in this report focuses on the most material aspects of our economic, social and environmental performance as defined by our integrated business and sustainability strategies. In keeping with our long-standing commitment to apply the most up-to-date sustainability reporting guidelines, this report has also been developed in accordance with the Core Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines which were published in May Furthermore, our 2013 Economic, Environmental and Social report has integrated the specific contents and performance indicators required by the GRI s G3.1 Construction and Real Estate Sector Supplement (GRI CRESS) which was published in Our compliance with these GRI guidelines has been independently verified by Deloitte, whose assurance statement can be found on page 140 of this report.

3 corporate overview Who We Are 02 CEO s Statement 03 The Year at a Glance 05 Our Company 08 Our Business Model and Strategy 14 SONAE SIERRA 2013 Economic, Environmental and Social Report.02 < > 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. boulevard londrina Shopping, Brazil passeio das Águas Shopping, Brazil Further references: For further information about the International Integrated Reporting Council, see: For further information about the Global Reporting Initiative, see: algarveshopping, Portugal

4 CORPORATE OVERVIEW.03 SONAE SIERRA 2013 Economic, Environmental and Social Report < > CEO S STATEMENT A conversation with Fernando Guedes Oliveira Sonae Sierra CEO 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 twelve months? Has the year turned out as you expected? A: Overall, Sonae Sierra s business exceeded expectations for Our Net Result for the full calendar year was 3.6 million; we delivered a Direct Net Profit of 57.6 million and presented an EBITDA of million 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. Whilst our direct results show a decline in comparison with 2012, this is due to the sale of assets during the last two years in line with our capital recycling strategy. On a like-for-like basis, our Direct Profit and EBITDA would have in fact remained stable. 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 a decline in sales and expansion in yields as forecast. However, from May onwards we witnessed an uplift in consumer confidence and since October we have achieved month-on-month sales growth across the majority of our portfolio, combined with a stabilising of yields, particularly in Portugal and Spain. We feel confident that the momentum will continue to pick up as we move into 2014 and we have built a strong platform to take advantage of market recovery as soon as it materialises. In Brazil, on the other hand, the economy is still expanding in spite of recent deceleration: tenant sales increased by more than 5% and we were able to deliver strong rental growth. Q: What progress did Sonae Sierra make towards its objectives for 2013 and beyond? A: Our business strategy remains the same and is validated by the changes we saw during We continue to: l l l Maintain and enhance our shopping centre specialism. Deploy our capital recycling strategy to fund new developments and reduce our exposure to investment properties, with a shift from a mature market concentration to a greater weight of emerging markets (including Brazil). Reinforce our professional services business. l Pursue new development opportunities with a capital-light approach in the use of equity. In 2013 we concluded the sale of three assets one in Spain and two in Italy to institutional investors, enabling us to perpetuate our capital recycling strategy. These sales not only demonstrate that investor interest is returning to these Southern European markets, but they are also a testament to the quality of our portfolio and the strength of our expertise in maximising asset value. Two more significant achievements of our investment business were the extension of the Sierra Fund for an additional five year period and the acquisition of a further 50% stake in CascaiShopping, through a majority-owned subsidiary, a prime asset in Greater Lisbon. We inaugurated three new shopping centres one in Germany and two in Brazil. In Germany, Hofgarten Solingen is already exceeding expected performance in terms of footfall and sales. In Brazil, our expansion into two new states in the interior and south of the country Goiás and Paraná has significantly added to the GLA of our portfolio in this market. Boulevard Londrina Shopping and Passeio das Águas Shopping are reference points in terms of high-quality design and best practice in safety, health and environment in these regions. Brazil offers strong potential for new projects as well as expansions/refurbishments to existing assets, and in this context we also launched a significant expansion project at Franca Shopping in São Paulo. In terms of new development, we commenced works on a new flagship shopping centre in Bucharest, Romania in a joint venture partnership with Caelum Development. Our professional services business continues to bear fruit, with over 50 new contracts signed in 2013 and the successful launch of Sierra Reval, a partnership created to deliver shopping centre services in 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. In geographies that are new to Sonae Sierra, such as those in Asia and Africa, our professional services activity enables us to test the market before investing capital, thereby supporting our capital light approach. This approach is illustrated by the recent announcement of our first joint venture development in Morocco.

5 corporate overview.04 SONAE SIERRA 2013 Economic, Environmental and Social Report < > ceo S StatEmEnt (CONTINuED) Q: What have been the most significant challenges and how have you overcome these? a: Without a doubt the adverse economic conditions in Southern Europe continue to present the greatest challenges for our business. Scarcity of debt, weak retail sales and fluctuating yields continue to compromise our ability to proceed with new development, maximise rental income and improve our direct results. However, our teams have deployed considerable initiative and efforts to maintain our high occupancy rates an average 94.4% across our global portfolio and 97.4% in Portugal, one of the countries most affected by the Eurozone crisis and to strengthen the appeal of our assets as cutting-edge shopping and leisure destinations for consumers. On this front, I am particularly proud of the work we have done to support our tenants businesses; drive down service charges through cost-cutting measures (including eco-efficiency); introduce exciting new retail concepts into our malls and exploit digital media platforms to enhance sales activation. Furthermore, the successful disposal of the three assets mentioned previously enables us to release capital to fund our new investment and/or development activity in the context of a constrained debt market, whilst the impressive growth of our professional services business bolsters our net income and opens up opportunities for our business to expand further into emerging markets which hold greater promise for retail growth. Q: What do you consider to be Sonae Sierra s greatest achievements of 2013 and how will these affect the business going forwards? a: Besides the specific events highlighted above, I would emphasise above all our strong capital position with a low loan-to-value ratio and a solid interest cover. Indeed, all the efforts we have made over the last five years to contain our costs, sustain our rental income through first-class operational management and expand into new geographies through our competitive services business put us in an optimal position to take advantage of the improved economic circumstances. Another key achievement for our business has been, in my view, the way in which we have embraced changing consumer habits through intelligent use of digital media. Whereas e-commerce was initially seen as a significant threat, the success of our PromoFans promotions platform proves that we can use the internet to our advantage. With other digital projects already underway, we expect to reap further rewards from the skilful use of digital technology in the future. 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 Flash Stores and Coop Stores which are fostering entrepreneurship and enhancing our offer to consumers. All in all, these activities stand us in a good position to sustain the success of our shopping centres in the context of significant global challenges by ensuring that they operate in harmony with the surrounding environment and local community. Q: What are your priorities for 2014, and how do you see the year unfolding? a: Overall, I am cautiously optimistic about the year ahead. Anticipating gradual stabilisation in Southern European markets, we will continue to pursue a dynamic management approach with a focus on improving occupancy, rental income and tenant sales. In Iberia, where the market has bottomed out, we expect values to improve slightly during 2014 at least for prime assets, and for more investors to return to the market. Whilst we do not currently have plans to acquire or develop any more assets in this market, we will proceed with expansion and refurbishment works when the conditions are right to enhance the value of our existing portfolio. We believe that the German market will remain the strongest within the Eurozone, with growing investor appetite for both primary and secondary assets. Consequently, we will seek opportunities for new developments and acquisitions in this country, as well as in Italy where we are seeing patent signs of recovery. In Brazil, the FIFA World Cup and the Rio 2016 Olympic and Paralympic Games will have a positive impact by drawing an influx of visitors to the country, leading to higher footfall and sales in our shopping centres, provided that the local construction industry and infrastructure is able to support the increase in visitors. Inflation in this market will remain a challenge in 2014 and we expect interest rates to remain high, but GDP growth should nonetheless be sustained at 2-3% fuelled by increasing consumption. The main focus of our strategy in Brazil will be on development; we will proceed with the construction of a new development pipeline and exploit opportunities for redevelopment on key existing assets through expansion and/or refurbishment projects. We will take an opportunistic approach to acquisitions, targeting shopping centres which offer strong potential for redevelopment when the market is favourable, and we will pursue a strategy of capital recycling through the sale of non-core assets. Importantly, we will increase our presence in emerging markets; both by entering new markets as a professional services provider and growing our market share in the countries where we are already present, with a particular focus on North Africa and Turkey. Our development business will also seek opportunities for direct investment, always in accordance with our capital light approach. We will continue to innovate in our approach to business; ensuring that our centres offer the most cutting-edge experiences for consumers and that we deliver first-class solutions to our clients. Equally we will proceed with our focus on enduring business resilience through our four long-term priorities, tackling global environmental and social challenges in a way that supports ongoing value creation for our stakeholders. With a robust strategy in place, we commence the New Year in a strong position to exploit new opportunities and deliver solid performance across all areas of our business.

6 corporate overview.05 SONAE SIERRA 2013 Economic, Environmental and Social Report < > the year at a glance Key achievements INVEStMENt SiErra Fund and cbre iberian value added Fund Sold parque principado (Spain) For million SiErra Fund Sold valecenter and airone (both in italy) to blackstone real EStatE partners For million reached agreement With rockspring property investment managers to acquire 50% StaKE in cascaishopping (portugal) announced the ExpanSion and refurbishment of Franca Shopping (brazil), With 31 million investment adding 11,000m 2 gla inaugurated 4.5 million ExpanSion of algarveshopping and commenced 5 million refurbishment of norteshopping (portugal) DEVELOPMENt inaugurated hofgarten SolingEn (germany) inaugurated boulevard londrina Shopping and passeio das ÁguaS Shopping (brazil) commenced the development of parklake in romania, a Joint venture With caelum development announced our FirSt development in morocco, a Joint venture With marjane, al Futtaim and SociÉtÉ d aménagement de ZEnata (groupe cdg) MANAgEMENt launched digital lounge pilot project in hofgarten SolingEn the FirSt of its Kind in our 3 portfolio consolidated promofans platform achieving 360,000 registered users SincE launch launched coop StorE project to FoStEr EntrEprEnEurShip and the EmErgEncE of new brands and concepts in our Shopping 3 centres implemented rainwater harvesting or WatEr reuse SyStEmS at Six Shopping centres (34% of our centres now have these SyStEmS) PROFESSIONAL SERVICES SignEd 59 new SErvicE contracts across EuropE, north africa and asia With a combined value of 12.2 million EntErEd the turkish market With the creation of SErvicE provider company SiErra reval consolidated activity in morocco, Signing SEvEn new SErvicES contracts With clients Joint venture partnership FormEd With citic capital to provide property management SErvicES in china

7 corporate overview.06 SONAE SIERRA 2013 Economic, Environmental and Social Report < > the year at a glance (CONTINuED) awards and certifications 1 awarded the retail rising StarS award at the international retail property market (mapic) awards 2013 For our activity in brazil honoured For the FiFth consecutive year by the EuromonEy magazine real EStatE awards Winning best developer overall and best retail developer in portugal received Four awards at the icsc Solal marketing awards the highest number For a EuropEan company obtained Four new iso and FivE new ohsas certifications at three operational iso AND iso CERTIFICATIONS ACHIEVED Shopping centres and two construction projects Key performance indicators 5,638m OMV of owned Assets ( million) 3.6m Consolidated Net Profit ( million) 113.5m EBITDA ( million) , , , , ,288 Number of tenant contracts under management 94.4% Average Occupancy Index (% by GLA, across our owned portfolio) 1,000m Real Estate NAV ( million) , , , , , , , ,251 1,896m 2 GLA owned in operating centres (000 s m 2 ) 2,303m 2 GLA under management (000 s m 2 ) , , , , , , , ,220 1 For a full list of awards received in 2013, please see our website.

8 CORPORATE OVERVIEW.07 SONAE SIERRA 2013 Economic, Environmental and Social Report < > THE YEAR AT A GLANCE (CONTINUED) Key Performance Indicators (continued) 4.6 Tenant satisfaction Index (scale of 1 ( not satisfied ) to 6 ( very satisfied )) 32.2 Average hours of training per employee 8.4 Number of non-conformities per hour of reference SPO Lost Workday Case Accidents Frequency Rate (LWCAFR) on construction sites Greenhouse gas (GHG) emissions of our owned portfolio and corporate offices (tco2e/m 2 GLA) kWh/m 2 Electricity efficiency (excluding tenants) of our owned portfolio (kwh/m 2 mall and toilet area) Water efficiency (excluding tenants) of our owned portfolio (litres/visit) % Total waste recycled as a proportion of waste produced (% by weight, across our owned portfolio) Safety, health and environment Preventive observations (SPO) are a form of safe behaviour audit undertaken at our shopping centres in operation. For further details, please see page 109.

9 corporate overview.08 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our company Sonae Sierra is the international shopping centre specialist that is passionate about creating unique shopping experiences. Incorporated in Portugal in 1989, Sonae SgPS (Portugal) and grosvenor group Limited (United Kingdom) each control 50% of the Company. We have an integrated business which encompasses owning, developing and managing shopping centres as well as the provision of professional services in geographies as diverse as Europe, South America, North Africa and Asia. As a pioneer in the creation of themed shopping centres, Sonae Sierra remains a leader in the development of unique concepts for exceptional shopping centres that offer great experiences and turn customers into fans. Our proactive approach to business ensures that we have the necessary capital required to maintain and market our shopping centres, attract new and innovative tenants and to increase our centres asset values. This strategy has allowed us to develop unique know-how and has earned us international recognition for the development of innovative products and delivery of high quality property management services. This has enabled us to develop our activity as a professional service provider. SonaE SiErra Shopping centres from a to Z g g g Development Ownership and asset management Management and letting g g KnoWlEdgE provision Shopping Centres owned by Sonae Sierra and its Partners Our Clients Shopping Centres

10 CORPORATE OVERVIEW SONAE SIERRA Economic, Environmental and Social Report < > OUR COMPANY (CONTINUED) 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. Further reference: Centro Colombo, Portugal To read more about our values and principles see: Hofgarten Solingen, Germany Boulevard Londrina Shopping, Brazil

11 corporate overview.10 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our company (CONTINuED) organisational structure Sonae Sierra is a holding company 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. SiErra investments SiErra developments Sierra investments owns the Company s shopping centres and is responsible for our investment activities. It contributes to the Company s results through a combination of net operating income from shopping centres and the variation in the market value of the shopping centres owned and in operation. The team takes a long-term view of the potential of an asset to increase in value over time, investing in a combination of assets developed by Sierra Developments as well as acquired from third parties. Sierra Investments holds 50.1% of the Sierra Fund and 47.5% of the Sierra Portugal Fund, thus maintaining its position as co-owner and manager of the Funds underlying assets. Applying the extensive experience it has acquired, this business also acts as a provider of professional services. Sierra developments constantly seeks opportunities to develop new shopping centres. This business applies its internal expertise from the conceptual architectural design phase through to the construction and engineering management of shopping centres (including expansion and refurbishment projects). Sierra Developments is responsible for developing new and innovative concepts that are adapted to local communities needs, are respectful of local values and culture and create value based on a sustainable and long-term approach. Leveraging on its track record and know-how, Sierra Developments also provides professional services in the shopping centre development area. SiErra management SonaE SiErra brasil Sierra management takes on the management of shopping centres on behalf of Sonae Sierra and its co-owners, with a focus on maximising long-term value. Furthermore, the business is responsible for leasing the retail premises within each shopping centre, including the vacant shops in our operating centres and those in projects that are still in the development stage. Sierra Management also provides professional services in shopping centre management and leasing. Sonae Sierra brasil is listed in the BM&F BOVESPA (the Brazilian Stock Exchange) with a 33% free float, the remainder is a 50/50 partnership between Sonae Sierra and DDR, one of the usa s largest real estate investment trusts (REITs) focused on the shopping centre sector. Sonae Sierra Brasil s business operates autonomously and is focused on investing, developing and managing shopping centres in Brazil. All our businesses are supported by Corporate Services which includes: Finance, Legal, Taxes, Human Resources, Communication, Sustainability and our European Shared Services Centre.

12 III corporate overview SONAE SIERRA 2013 Economic, Environmental and Social Report.11 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. Currently we are present in 13 countries: Portugal, Algeria, Azerbaijan, Brazil, China, Colombia, germany, greece, Italy, Morocco, Romania, Spain and turkey. germany Spain romania azerbaijan portugal colombia greece turkey italy morocco algeria china brazil Operations in 4 continents and 13 countries passeio das Águas Shopping, Brazil loop5, Germany < >

13 corporate overview.12 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our company (CONTINuED) Key Facts as of 31 december 2013 Shopping centres owned 47 management and/or leasing 81 total managed gla of 2.3 million m 2 under development 6 projects and an omv of 5.6 billion Shopping centres across 13 countries including Four For professional SErvicES clients, and Four new projects in the pipeline rent received at owned Shopping centres million visits made to managed Shopping centres million tenant SalES at managed Shopping centres 5,158 million direct EmployEES 1,144 Further reference: For further information about our performance in the countries where we operate, please see our Sustainability Country Reports on our website. alexa, Germany boulevard londrina Shopping, Brazil 3 Total rents received excluding our Torre Occident office building were million.

14 III CORPORATE OVERVIEW SONAE SIERRA 2013 Economic, Environmental and Social Report.13 < > OUR COMPANY (CONTINUED) Our current partnerships and clients When it comes to shopping centres, we aim to be the partner of choice. Our business, quite simply, would not be what it is today C ). With their backing, we can ensure we have financial strength, the ability to quickly P ) and service clients (0 without our partners (0 gain an in-depth knowledge of markets and create new opportunities. ALGERIA P Cévital Group 0 C Immobis 0 C Prombati 0 AZERBAIJAN C Baghlan Group 0 BRAZIL P Marco Zero 0 P Família Sé 0 C Tivoli EP 0 C Credit Suisse HG 0 PORTUGAL P Estevão Neves 0 P Bensaúde Group 0 P Sonae RP 0 P Sonae MC 0 C CGD P &0 0 C Millenium BCP 0 C Montepio Geral 0 C GIL 0 C The Edge Group 0 SPAIN P Eroski Group 0 P Iberdrola Inmobiliaria 0 C Grupo Clásica Urbana 0 WE AIM TO CREATE MORE LONG-TERM RELATIONSHIPS WITH LIKE MINDED ORGANISATIONS WHO SEE US AS THEIR SHOPPING CENTRE PARTNER OF CHOICE. CHINA C Citic Capital Real Estate P &0 0 COLOMBIA P Central Control 0 FINLAND P KEVA 0 P ILMARINEN 0 FRANCE P AEW Europe 0 P CNP Assurance 0 P CDC 0 P Foncière Euris 0 SWITZERLAND P Partners Group 0 THE NETHERLANDS P ING Developments 0 P APG Investments 0 P MAB Development 0 C Redevco P &0 0 TURKEY P Reval 0 C Banio 0 C Endülüs Gayrimenkul 0 C Krem Turizm 0 Boulevard Londrina Shopping, Brazil UAE GERMANY P Deka Immobilien 0 C Union Investment P &0 0 C Aachener Grundvermögen 0 C BHG Gewerb 0 C Commerzbank 0 GREECE Charagionis Group P 0 IRELAND P Caelum Development 0 ITALY P Coimpredil 0 C Faenza Erre 0 C Edilnaonis 0 C Immobiliare Helios 0 MOROCCO C Marjane 0 C Foncière Chellah 0 C Facenor 0 C Groupe CDG P &0 0 Uberlândia Shopping, Brazil C Al Futtaim P &0 0 UNITED KINGDOM Grosvenor Fund Management Rockspring Schroders Investment Management C Scottish Widows 0 C Doughty Hanson 0 P 0 P 0 P 0 USA P 0 P 0 P 0 P 0 AIG TIAA-CREF DDR CBRE Global Investors

15 g III corporate overview.14 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our business model and StratEgy Our business model and strategy depends on a number of resources and relationships for its ongoing success. We focus on four strategic axes that we have identified as priorities. these are supported by our sustainability strategy that addresses four long-term focus areas designed to contribute to our continued success while delivering value for our stakeholders and the environment. Our approach to safe people & eco-efficiency and risk management are two key aspects of our day-to-day management activities that underpin both our business and sustainability strategies. how we create value With 25 years of experience, the combination of our know-how, our commitment to innovation and our long-term approach has created an integrated business model that embraces shopping centre development, ownership and management as well as our professional services business. Our shopping centre specialism, the quality of our assets and our ability to create financial and social value for stakeholders throughout the entire asset lifecycle constitute a competitive advantage and have enabled our business to expand into 13 countries across four continents. our business model WE Fund We provide effective investment solutions that utilise capital while maximising returns. g WE Find With extensive knowledge of the shopping centre business, we perform market, cost, community and environmental studies to identify sustainable retail opportunities. g g WE acquire We acquire the completed assets, many of which we co-own through investment funds, offering international investors sustainable financial rewards from dynamic, high quality retail assets. PRE DEVELOPMENt WE design We create innovative schemes and provide professional shopping centre design services to offer exceptional retail experiences and bring vibrancy to the local area whilst sustaining environmental resources and ensuring high safety standards. g g ASSEt MANAgEMENt INtEgRAtED APPROACH DEVELOPMENt WE manage We manage our assets in a way that maximises returns for our professional services clients, tenants and investors whilst also delivering value for communities and visitors. At the same time, we promote the efficient use of natural resources and the safety of all people in and around our properties. PROPERtY MANAgEMENt WE develop Combining know-how and experience, we bring together exceptional construction and marketing support to develop and commercialise sustainable buildings covering both our owned assets and as a professional service provider. g g g g g

16 CORPORATE OVERVIEW.15 SONAE SIERRA 2013 Economic, Environmental and Social Report < > OUR BUSINESS MODEL AND STRATEGY (CONTINUED) The success of this business model nonetheless depends upon the availability of a range of resources and relationships which we have defined with reference to the Integrated Reporting framework s six capitals 4. Our Company, through its specific activities, both relies and impacts upon the quantity and quality of these capital stocks in different ways, as explained below:.01 Financial Capital funds for use in the production of goods and/or provision of services, which are obtained through financing and/or generated through operations and investments. Inputs: For Sonae Sierra, this includes debt, equity and capital recycled through the sale of assets. The success of our business is also reliant on wider financial market stability and consumer spending power. Outputs: Our activities generate a profit for our Company, our shareholders, the investors in our Funds and our co-investors. We also provide a marketplace for tenants sales and create financial value for suppliers and local economies..02 Manufactured Capital manufactured physical objects that are available for use in the production of goods and/or provision of services. Inputs: In the context of our business, this includes buildings and pre-fabricated building materials; equipment and infrastructure to develop, operate and invest in shopping centres. Outputs: We develop new shopping centres and operate expansions and refurbishments on existing assets. Our activity as a shopping centre operator encourages private consumption and the acquisition of consumer goods..03 Intellectual Capital organisational, knowledge-based intangibles, including intellectual property, software, internal knowledge, systems, procedures and protocols. Inputs: Our real estate know-how, built up through 25 years of experience and retained by our skilled employees is most relevant in this context. Outputs: We create tailored IT and management systems; we increase the skills and know-how of our employees and contribute to knowledgesharing within the wider retail property sector..04 Human Capital people s competencies, capabilities and experience, and their motivations to innovate. Inputs: We rely upon healthy, skilled and motivated staff and suppliers to devise our business strategy and execute our day-to-day activities. Outputs: We provide livelihoods to employees and suppliers and support them in developing their skills. Our shopping centres provide services to local community members. Our activities do occasionally have an adverse impact on human capital when accidents occur to people working at or visiting the buildings and construction sites we own and/or occupy..05 Social and Relationship Capital the institutions and the relationships within and between communities, groups of stakeholders and other networks, and the ability to enhance individual and collective well-being. Inputs: For us, relationships with local communities, tenants and joint venture partners are particularly important, as is the existence of social cohesion, reliable public authorities and social services in particular education. The sustained viability of our shopping centres also relies upon active consumer spending. Outputs: Our activities create jobs, provide venues and services for local community members and promote investment in the communities where we operate. Our impact on local businesses can be mixed: local shops are often successfully integrated into our centres; but in some cases the inauguration of new centres can adversely impact on the existing retail offer..06 Natural Capital all renewable and non-renewable environmental resources and processes that provide goods or services that support the prosperity of an organisation. Inputs: Air, water, land, minerals and forests; biodiversity, climate regulation and eco-system health are all vital resources which we rely upon in order to sustain the other capitals and enable us to carry out our day-to-day business. Outputs: Our direct activities generate GHG emissions, waste and effluents, all of which contribute to the erosion of natural capital. 4 For more details, please consult the Integrated Reporting Framework of the International Integrated Reporting Council, available from

17 corporate overview.16 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our business model and StratEgy (CONTINuED) our business 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..01 Shopping centre Specialist.02 capital allocation There continues to be strong demand from the retail sector worldwide. Consumer confidence across Europe has picked up significantly over the last year, and retail is becoming an increasingly important asset class in today s growth and emerging markets, which are projected to account for around one-quarter of global retail investment by We aim to maximise the value captured along the complete value chain of the shopping centre business. For this, we will keep an integrated approach, covering development, investment and management of shopping centres. We define ourselves by our sector focus and not by the amount of financial capital committed to properties. That means, in some properties: l We may hold a controlling position, by ourselves or with partners. The retail investment market is becoming increasingly internationalised, fuelled by the increase of consumer purchasing power in diverse geographies across the globe. Whilst growth in mature markets is projected to increase at a slower rate, demand for quality developments in growth and emerging markets is likely to remain buoyant, albeit subject to intermittent risk in markets which present a higher degree of social and political instability. In this context, we aim to increase our exposure to developments. This will be achieved through a combination of acquiring exposure to new development opportunities and reducing our exposure to investment properties. We will also shift from a mature market concentration to a greater weight towards emerging markets. Our market priorities will be: l Brazil. l l We may hold minority positions associated with management services. We may render services to third party owners without any financial capital invested by the Company. In all cases, we will strive for the creation of innovative shopping concepts that will adjust and evolve in order to be the preferred choice of the customer. l l Emerging markets with significant shopping centre potential, that can deliver high returns in the long term, and where we may enter via the provision of professional services. Germany, Italy and Romania where the objective is to reduce financial capital employed and adopt a developer approach. Portugal and Spain will continue to be core stable markets for the Company but with no prospects for new developments. For Greece, the objective is to realise value in an orderly way..03 professional Services.04 capital intelligence We will continue to reinforce a professional services component focused on development, leasing and property management services. This enables us to optimise the resources of the Company under market fluctuations and improve know-how on markets, partners and projects. We will reinforce a capital-light approach in the use of equity. For this, we will use partnerships with the purpose to minimise the financial capital invested in a given operation allowing us to share risk, maximise returns through service 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.

18 corporate overview.17 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our business model and StratEgy (CONTINuED) Our business strategy is supported by our sustainability strategy, including our strong commitment to safe people and eco-efficiency and our continued focus on best-practice risk management across all parts of our business. Each of these practices is described in detail in the sub-sections below. our sustainability strategy To realise our objectives under all four axes of our business strategy, we rely upon inputs from all six of the capitals described on page 15, in particular financial capital, land, natural resources, infrastructure and materials for shopping centre development and operations; relationships with joint venture partners, tenants and visitors; active consumerism and the skills and expertise of staff and suppliers. Our sustainability strategy was devised to enable us to sustain the capital stocks of resources and relationships which we are dependent upon in the medium to long-term. This means that, by executing our sustainability strategy alongside our business strategy, we aim to create a virtuous circle whereby we address the principal sustainability risks facing our operations in order to safeguard our continued capacity to do business. The relationship between our business and sustainability strategies and the six capitals is shown below. Financial Capital g g SaFE people&eco EFFiciEncy risk management SHOPPINg CENtRE SPECIALISt CAPItAL INtELLIgENCE CAPItAL ALLOCAtION LEVERAgINg KNOWLEDgE PROFESSIONAL SERVICES RESOURCE RESILIENCE g g Human Capital PROSPEROUS REtAILERS SUStAINABLE LIFEStYLES Natural Capital Intellectual Capital Manufactured Capital Social & Relationship Capital g g

19 corporate overview.18 SONAE SIERRA 2013 Economic, Environmental and Social Report < > our business model and StratEgy (CONTINuED) our sustainability strategy (continued) The past few years have seen some dramatic changes in the market which affect the quality and availability of the capital resources which our business relies upon. Having consulted with our Sustainability Steering Committee and other key internal and external stakeholders, we identified some key challenges which are impacting on our business and should be prioritised for action; among these were: l l l l Tenants need to adapt to radical technological, environmental and demographic changes. There is increasing consumer demand for green and ethical/fair-trade products and services. Competitive advantage will be achieved through the ability of a workforce to learn faster than the competition. Natural resources are becoming scarcer and costlier. Based on these challenges, we pinpointed four focus areas which will form the basis of our sustainability strategy in the medium-term, in addition to our ongoing Safe People and Eco-Efficiency commitments. Two of these focus areas in particular required more immediate action in 2013 in order to support our tenants and reduce costs wherever possible across our operational portfolio; for this reason, most of our efforts to date have focused on Prosperous Retailers and Resource Resilience, whilst our plans for Sustainable Lifestyles and Leveraging Knowledge are at an earlier stage of development and execution. prosperous retailers Adapting to a changing world and new consumer demands are key to our tenants success. Savvy retail operators can leverage digital platforms to develop stronger relationships with consumers, gaining insight into and effectively responding to their behaviour and preferences in order to activate sales. Retailers who embrace social and environmental challenges through their business models stand a better chance of sustaining their businesses in the long-term and can deliver benefits to local communities. We are already taking actions to partner with current and potential tenants to make their businesses more resilient, in particular enabling small, local and sustainable businesses to thrive in circumstances in which they might not have done so otherwise. At the same time, this approach supports our business strategy by allowing us to promote new concepts that deliver unique experiences to customers. Consequently, we can sustain our income streams and maintain innovation at the heart of Sonae Sierra s business values. Sustainable lifestyles The findings of our own consumer behaviour surveys as well as external data on shopping habits reveal that consumers are increasingly concerned with the environmental and ethical impacts of their purchases; are keen to support local businesses and in many cases want to adopt healthier, more environmentally sustainable lifestyles. In fact, 75% of consumers we interviewed in 2013 reported that they feel more satisfied when they visit a sustainable shopping centre. We will use our reach and public influence to encourage visitors to make the right choices. This involves promoting healthy, green and local goods and services; improving well-being through health activities in our shopping centres; and creating a sense of place. This approach enables us to increase visitors satisfaction and loyalty, thereby increasing footfall in our shopping centres, and adds to our brand value as we visibly support health, well-being and environmentally-conscious behaviour. leveraging Knowledge In today s world, competitive advantage is driven by the ability of a company s workforce to learn faster and innovate ahead of their peers. We aim to empower our employees by building their skills and knowledge, unleashing their potential on an individual basis and raising the standard of education at a collective level in the communities where we operate. By doing so, we can enhance the intellectual capital of our organisation and the external pool of talent from which we aim to attract ambitious people to join our workforce. resource resilience Pressure on natural resources is anticipated to lead to an increase in their costs. Furthermore, with ever-tightening regulation around greenhouse gas emissions and other environmental impacts in the context of global climate change, having alternative, efficient and clean natural resource strategies in place will be essential for assets to maintain their long-term value. We are already investigating ways to future-proof our assets by becoming energy independent and reusing water on our sites, exploiting the latest innovations and technology in natural resource management to rethink processes. This will protect our assets against natural resource shortages and cost increases, and reduce operating costs in the short to medium term through alternative energy and water management strategies. Altogether, this approach will enable us to reduce the detrimental impacts of our Company on the environment and help us to maintain the essential services that nature provides.

20 corporate overview SONAE SIERRA 2013 Economic, Environmental and Social Report.19 < > our business model and StratEgy (CONTINuED) Safe people and Eco-Efficiency Whilst our sustainability strategy focuses on tackling specific challenges in order to guarantee business resilience, making sure that our shopping centres are consistently run to the highest standards of safety and eco-efficiency is a day-to-day priority for Sonae Sierra. We operate a best in class, integrated Safety, Health and Environment Management System (SHEMS) which enables us to effectively manage safe people and eco-efficiency aspects. Through our SHEMS, we provide a better service and/or workplace to tenants, shopping centre visitors, professional services clients, employees and suppliers alike whilst reducing operating costs for our business. For a detailed description of our SHEMS, please see pages 47 to 48. We have identified long-term objectives supported by annual targets to drive continuous improvement across the five impact areas that sit under the umbrella of Safe People and Eco-efficiency (energy and climate, water, waste, biodiversity and habitats and safety and health). For a list of our long-term objectives, see the Disclosure on Management approach for each impact area in the GRI section of this report, pages 81 (energy), 86 (water), 96 (waste), 91 emissions and 105 (safety and health). In 2013, we fully achieved 19 out of 23 SHE targets (83%) and partially achieved 1 target (4%). We also fully achieved 45 out of 61 SHE actions (74%) and partially achieved 9 actions (15%). For a complete list of these annual targets (including non SHE targets) and the methodologies applied to assess our performance, please consult the targets and actions reports on our website. risk management algarveshopping, Portugal We operate a Risk Management Working Group to serve as facilitator and promoter of risk management best practices company-wide. The Working Group gathers information and reports on the risks that the Company is facing or may face in the future and reports, via the CFO, to the Audit and Compliance Committee of the Company. In 2013, the Risk Management Working Group reviewed three risks included in the Sonae Sierra Risk Matrix and promoted three debates with the business teams on the potential impact of specific risk topics. The revised risks included guarantees on deferred tax liabilities, political risks associated with both mature and emerging economies and an increase in yields. In each case we identified a number of mitigating actions and committed to monitor the external factors that may contribute to their materialisation. Our risk management targets for 2014 are to develop risk mitigation guidelines for the provision of professional services, to complete the existing Crisis Management Manual with additional critical risk management aspects and reassess the risks associated with security conditions in operational shopping centres. The table below presents a summary of our key controllable and non-controllable risks and mitigation strategies, covering financial and non-financial risks. boulevard londrina Shopping, Brazil Key controllable risks risk liquidity risk: The lack of availability of bank debt in Europe at present constrains our ability to finance new development and refinance loans which are maturing. Safety, health and Environment (ShE) risks: Non-compliance with increasingly demanding legislation around energy use, GHG emissions, waste and effluent production and safety and health at Eu and local level. mitigation strategy Our capital recycling approach helps us to offset the lack of available bank debt, the intention being to dispose of or refinance assets in mature markets so as to fund new development activity in rapidly growing economies. We maintain our loan-to-value ratio at prudent levels below 50% (currently at 43.9%). We operate a corporate Safety, Health and Environment Management System (SHEMS) which covers all our business activities. It is certified in accordance with ISO and OHSAS environmental and safety management standards. Furthermore, to date we have achieved ISO certifications for the site-level SHEMS of 25 completed construction projects and 87% of our operational shopping centres. We have obtained OHSAS certification on nine completed construction projects and at 60% of our operational shopping centres.

21 corporate overview SONAE SIERRA 2013 Economic, Environmental and Social Report.20 < > our business model and StratEgy (CONTINuED) risk management (continued) Key non-controllable risks risk increase in yields: Property valuations are affected by the prevailing conditions in the property investment market and the macro economic climate in general, and this impacts on our indirect results. Increasing yields in many European markets have been adversely impacting property values. rents stability: The trading environment has been tough for tenants in Europe, as the financial crisis has had an impact on the sustainability of the rents; if the tenant s businesses cannot sustain the rents contracted, we are at risk of having higher vacancy rates. Safety, health and Environment (ShE) risks: Accidents and catastrophic events (such as fires and extreme weather events) on our projects and our operational shopping centres can cause harm to people and infrastructure, incur delays and result in a potential loss of asset value and reputation. mitigation strategy As a counter-measure to mitigate the adverse effects of yield shifts on asset value, we have focused on increasing the operational efficiency of our shopping centres, introducing tighter asset management controls, and selecting new markets to invest in, taking into consideration the medium-term potential for yield compression (among other factors). Our approach to property management has always involved close scrutiny of our tenants business performance. Over the past years we have increased the efficiency of our property management in order to reduce service charges and have negotiated temporary rental discounts with some tenants. We have also intensified our efforts to increase footfall in shopping centres through our marketing and events programmes. Our geographical spread, and in particular our current presence in the Brazilian market reduces the impact that individual tenant defaults can have on our business. Our SHEMS provides a framework for us to anticipate and manage all safety risks on Sonae Sierra construction sites and shopping centres. We deliver regular SHE training to suppliers and tenants and perform safe practice behaviour audits on our construction sites and operational shopping centres through our SPI and SPO tools 5. Moreover, both our Development and Property Management businesses have integrated the requirements of Sonae Sierra s SHEMS into their Service Suppliers Management Procedures, ensuring that our main suppliers performance meets with our SHE requirements. With the collaboration of our suppliers and tenants, we carry out emergency practice drills on a regular basis on all our sites. For further details, see pages 107 and 110. Regarding extreme weather events, we are pursuing an approach of integrating climate change risk adaptation procedures into our current risk management processes. In 2013, we updated our acquisition checklist to ensure key risks related to weather related events are evaluated. We will also aim to address specific climate change adaptation priorities for each business activity, for example, by ensuring that our design standards for new developments and our procedures for operational assets ensure adequate protection against heavy rainfall and an effective response in cases of flooding. 5 Our Safe Practice Index (SPI) and Safety Preventive Observations (SPO) are described on pages 110 and 109 respectively.

22 OUR PERFORMANCE IN 2013 The Wider Context 21 Operational Performance 25 Consolidated Accounts 36 Future Outlook 44 Governance 46 Board Members and Executives 50 SONAE SIERRA 2013 Economic, Environmental and Social Report.21 < > Centro Vasco da Gama, Portugal Hofgarten Solingen, Germany OUR PERFORMANCE IN 2013 THE WIDER CONTEXT 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. 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. Edmundo Figueiredo Director, Chief Financial Officer Another challenging year, but reasons for optimism 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. This does not guarantee that the positive signs we have observed in the second half of the year are sustainable as there are a number of variables that remain outside of our control. We do, however, find ourselves in a favourable situation as the macro-economic conditions improve.

23 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.22 < > the WidEr context (CONTINuED) Steady growth in brazil, and evidence of green shoots emerging in Southern Europe In Brazil we have continued to benefit from robust economic growth, albeit at a slightly slower pace than in the previous few years. GDP grew by 2.3% in 2013 driven by income growth and low unemployment, and the retail industry continued to show strong performance overall. Government interventions aimed at containing inflation levels have led to a slight rise in interest rates, with rates reaching almost 10% by the end of the year. As a result of this buoyant economy, we continued to enjoy a strong growth in tenant sales across our Brazilian shopping centres, and we presented one of the highest EBITDA and Funds from Operations margins in the listed sector. 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 Family incomes have not fully recovered from the Government austerity measures imposed in 2012 and 2013, but we finally witnessed some growth in tenant sales as the macroeconomic conditions improved. Although year-on-year sales decreased in Portugal and Spain, we ended the year performing better than anticipated due to a significant increase in tenant sales in both markets in the second half of the year, and several shopping centres experienced positive growth by the end of the year. 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. Within the rest of Europe, excluding Greece, we enjoyed stronger market conditions and built on our existing operations to further grow the business. Particularly noteworthy were the inauguration of a 25,100m 2 centre in Germany (Hofgarten Solingen), and the commencement of a new important development of 70,000m 2 in Romania (ParkLake). As a reflection of these regional macro-economic trends, the Net Asset Value (NAV) of our portfolios has continued to fluctuate during In Brazil, our NAV in Reais increased whereas in Europe we still experienced some yields expansion in Portugal, Spain and Italy, albeit with a trend towards stabilisation particularly for prime retail assets. To counter and mitigate such adverse results, we continued to focus our attention on generating operational efficiencies and introduced even tighter asset management controls to reduce our direct costs. We continue to strive for high levels of service quality at lower costs wherever feasible, thereby contributing to overall asset performance. Strong financial position Our loan-to-value ratio (maintained below our target of 45%) and debt maturity demonstrates our conservative long-term funding strategy. We find ourselves in a strong financial position for the recovery, and this is supported by the efforts we have made to maintain occupancy rates and cut costs in our corporate operations. Sustaining high occupancy rates continues to be a key priority for Sonae Sierra: we believe it is better to support viable tenants that have been adversely affected by the current economic cycle than to lose them. Over the past few years, we have made considerable efforts to maintain the vibrancy of our shopping centres, as we are convinced that below a certain level of occupancy, the viability of a centre is harder to maintain and more costly to restore. Active management initiatives taken to improve tenants resilience include temporary rent discounts; financial advice; marketing support and a drive to maintain low service charges through increased operational efficiency including proactive eco-efficiency measures. Within our own back office, we have undertaken some restructuring efforts and tightened up management processes and procedures, where practical, in order to maximise productivity. Sticking to our capital recycling goal builds development capacity In a relatively debt constrained context, our capital recycling strategy is all the more important. We are therefore particularly pleased to report the successful disposal of three assets in 2013 by the Sierra Fund: Parque Principado in Spain, and Valecenter and Airone (both in Italy), for a combined value of 286 million. These sales enable us to release capital for deployment in new opportunities, with particular focus on emerging markets and some mature markets which present solid growth prospects already saw results of that strategy bear fruit, with the successful inauguration of three new shopping centres: Hofgarten Solingen in Germany and Boulevard Londrina Shopping and Passeio das Águas Shopping in Brazil. Moreover, we announced the start of a key new development in Bucharest, Romania (ParkLake). Capital recycling also enables us to increase our investments into existing schemes, and in 2013 we can highlight the acquisition, through a majority-owned subsidiary, of an additional 50% stake in CascaiShopping, a prime retail asset with solid performance in greater Lisbon (Portugal). The extension of the Sierra Fund operations to 2018 marks another key success given the importance of the Fund within our portfolio. With this extension, we avoid having to terminate the Fund at a low point in the cycle of the real estate market, meaning that the Fund is now also better positioned to take advantage of improving economic conditions in Europe.

24 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.23 < > the WidEr context (CONTINuED) Slow but steady recovery from now, with sights firmly set on growth On the whole, the world economy is showing signs of strengthening. In terms of global real estate investment, virtually all major markets were recording sales volume growth at the end of 2013 and liquidity was improving across a range of markets and sectors, indicating a positive outlook for the year ahead. New opportunities appear to be opening up for the financing of real estate, especially in prime operating shopping centres, with interest from insurance companies and sovereign wealth funds as well as core and long-term institutional investors. We anticipate that the gradual improvements witnessed in the final months of 2013 in Portugal and Spain will be carried forward into Whilst we expect that the European recovery will be a slow and cautious one, we nevertheless expect to see improvements in 2014, and some recovery of Open Market Values. With growing consumer confidence sending positive signals to the market, we foresee that investor appetite will again increase in Southern Europe in 2014, and that yields will continue to stabilise, particularly for prime assets. It is possible that demand for prime assets will overheat pricing out all but a select few investors but this could lead more investors to turn to secondary stock, helping to rebalance the real estate market. We continue to be optimistic about economic conditions and growth opportunities in other European markets, including Germany, Italy and Romania. In Germany, we expect to see continuing investor interest in retail assets and GDP growth close to 2% per year. In Italy, GDP is forecast to increase gradually by 0.7%. Whilst the Romanian economy has been impacted upon by the weak Eurozone, expectations are for around 1% growth in In Brazil, the market remains strong and growth is set to continue in 2014, albeit at a more moderate pace. The FIFA World Cup and the Rio 2016 Olympic and Paralympic Games are infusing great confidence into the market and potential investors. We will continue to focus on developing new projects and target acquisitions with expansion and renovation potential, and actively recycle capital from the sale of assets we consider to be non-core. The success of our professional services business in 2013 illustrates the significant growth potential we see continuing into We are optimistic that our recently formed joint venture partnerships in Turkey and China will convert into revenue growth and expect to realise further opportunities as we enter into more emerging markets in the coming year. We are actively investigating opportunities within South America, Northern Africa and Asia. growing investor momentum supports our focus on sustainable real estate With the built environment contributing to approximately half of man-made greenhouse gas (GHG) emissions, increasing regulation coupled with pressure from a plethora of stakeholder groups to mitigate climate change impacts means that implementing alternative energy strategies and increasing the energy efficiency of assets is becoming increasingly important for successful long-term real estate investment. In this context, water security is also moving up the agenda for corporates and international institutions alike. In the long term, carbon intensive investments are likely to lose their value. We continue to believe that sustainable real estate will deliver above average returns and outperformed non-sustainable real estate in the medium to long term. From our experience, investors are increasingly aware of the importance that sustainability features represent when making investment decisions and the sustainability agenda has continued to gain momentum in the global real estate industry. Investor tools such as the Global Real Estate Sustainability Benchmark (GRESB) are playing an important role in driving change in this area. Our performance in the 2013 survey puts us in the Green Star category, the highest rating achievable under this benchmark. The 2013 survey demonstrated a clear upward trend in sustainability performance across the sector and highlighted the fact that environmental and social considerations are now integrated into the daily management practices of most companies and funds. While the translation of such features into a value premium has yet to be seen, what is becoming more evident is that investors will tend to penalise, or not even invest in, properties lacking such features because they are at greater risk of obsolescence.

25 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.24 < > the WidEr context (CONTINuED) new goals to deliver long-term value for our business In 2013, we launched our revised Sustainability Strategy, with a continued commitment to effective Risk Management and Safe People and Eco-Efficiency, and a focus on four long-term themes: Prosperous Retailers, Sustainable Lifestyles, Leveraging Knowledge and Resource Resilience. We proceeded immediately with actions on those themes which present the most pressing issues for our business. In the context of diminishing household incomes and reduced public spending that is affecting Southern Europe in particular, leading companies are increasingly looking at strengthening the socio-economic value of their developments as a new source of competitive advantage, evaluating how their projects can most effectively inject wealth into the local economy. As our own research shows, supporting local businesses and other more sustainable forms of consumption is also becoming more important to shopping centre visitors. Consequently, we have initiated several projects to support entrepreneurship in our shopping centres within the scope of the Prosperous Retailers theme of our strategy. These included the successful piloting of Coop Stores in Portugal with a broader rollout planned in On the theme of Resource Resilience, we undertook research into new technology; feasibility studies and pilot projects with a view to supporting the long-term resilience of our shopping centre portfolio in the context of costlier and scarcer energy and water resources. We can highlight our decision to proceed with our research into the roll-out of water reuse and rainwater harvesting systems across our portfolio: indeed, 34% of our centres already have such systems in place, and a further five have been identified for this investment to be made in We continued to strengthen skills and educational development among our direct employees and within the communities where we operate. Contributing to our focus on Leveraging Knowledge, we are exploring how to implement this at a practical level. A key focus is on how we can transfer know-how in the company while supporting education in our communities. We aim to set specific actions in the year ahead and are exploring a number of opportunities including working with outside organisations such as universities. Freccia rossa, Italy parque d. pedro Shopping, Brazil grancasa, Spain

26 OUR PERFORMANCE IN 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.25 < > OPERATIONAL PERFORMANCE Successful development activity leads market expansion With Southern Europe still bearing the brunt of the economic crisis, our development activity in 2013 focused on Germany and Brazil where we have continued to deliver positive results in recent years: l l l May 2013 saw the inauguration of Boulevard Londrina Shopping in the Paraná state in southern Brazil. Developed as a joint venture with Marco Zero Shopping Empreendimentos Imobiliários, Boulevard Londrina Shopping represents an investment of 122 million and is our first shopping centre in the region. With 48,400m 2 of GLA it houses 224 shops, an entertainment and leisure area and 34 restaurants. With an occupancy rate of 87%, Boulevard Londrina Shopping created some 1,621 new jobs by the end of It is estimated that the centre will create a total of more than 3,000 jobs when fully occupied. Boulevard Londrina Shopping is a part of the Marco Zero Complex, a redeveloped area located in a strategic area of the city. The shopping centre brings new national and international brands to a catchment area of more than 800,000 people and received 3.3 million visits by the end of the year. In October 2013, Passeio das Águas Shopping opened its doors in the city of Goiânia (Goiás state) in Brazil. Representing an investment of 150 million, Passeio das Águas Shopping is the largest shopping centre in the Central-Western region of Brazil, comprising 77,900m 2 of GLA. The centre has a total of 267 shops, ten of which are large units, including a supermarket, seven cinemas, 36 restaurants and additional leisure and entertainment facilities. The shopping centre achieved a national accessibility certification for measures to improve mobility in and around the centre. Passeio das Águas Shopping has also had a positive impact on the local economy. Approximately 44% of tenants are local businesses and, with an occupancy rate of 77%, Passeio das Águas Shopping created some 1,517 new jobs by the end of The centre offers international and local brands to the 1.6 million inhabitants of Goiânia and received 1.1 million visits in its first two months, making it an important shopping and leisure destination for the region. Also in October, we inaugurated Hofgarten Solingen which was developed as a 50/50 joint venture with MAB Development in the city of Solingen, Germany. The centre represents an investment of 120 million and its 25,100m 2 of GLA offers 86 shops and 16 restaurants with a high quality tenant mix including health-conscious concepts and local tenants. With an occupancy rate of 88.2%, Hofgarten Solingen had created 597 new jobs in retail, shopping centre management and services by the end of 2013, exceeding expectations. It strengthens our presence in a European market which demonstrates strong retail potential in spite of the impacts of the economic downturn on the Eurozone. With approximately 1.4 million visits made to the centre by the end of 2013, we are enthusiastic about Hofgarten Solingen s success. WE CONTINUE TO SEEK OPPORTUNITIES FOR DEVELOPMENT THAT WILL DELIVER THE RIGHT LEVEL OF RETURN, BOTH IN MATURE MARKETS AND EMERGING MARKETS, ALWAYS IN ACCORDANCE WITH OUR CAPITAL LIGHT APPROACH. Ana Guedes Oliveira Director, Developments Our Safety, Health and Environment Development Standards (SHEDS) have a significant impact on our development activity as we strive to deliver assets that provide a safe environment and prove more resilient in terms of resource consumption, waste management and other challenges associated with climate change. The construction works for all three developments achieved dual certification in accordance with ISO and OHSAS standards in line with our long-term objective. Hofgarten Solingen was the first development of its kind in Germany to do so. Waste and safety are two performance measures that we monitor closely during construction works (including refurbishments and expansions). In 2013 we achieved a waste recycling rate of at least 95%, exceeding our target of 85%. We aim to anticipate and prevent all safety risks to onsite workers and use a number of indicators to measure our progress. The Safe Practice Index (SPI) measures adherence to Sonae Sierra safety and health requirements and in 2013 the average score across all construction sites was 94%. We also attained a Lost Workday Case Accidents Frequency Rate (LWCAFR) of 4.3%, a 13.5% fall from 2012 and exceeding our target of Finally, we managed to reduce the severity of construction site accidents with our accident severity rate decreasing by 22% from 2012 to We have been revising our Environmental Accounting Model so that we can better capture the value of eco-efficiency investments made during the development phase. Further references: You can read more about the progress we have made on our website.

27 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.26 < > operational performance (CONTINuED) Incorporating low environmental impact technologies during the design phase is cheaper and more effective than interventions made post-development, and with this in mind we have been actively investigating how the latest available technologies for on-site energy generation, water re-use and waste mitigation can be introduced on our new projects to enhance their operational cost efficiency and profitability, ultimately benefitting Sonae Sierra, our tenants and increasing visitor comfort. For example, Passeio das Águas Shopping features high energy-efficiency equipment and lighting and a rainwater harvesting system, besides innovative eco-friendly transport solutions including two indoor bicycle parking lots for more than 200 bicycles and parking spaces reserved for electrical cars, with charging stations. pursuing growth opportunities in mature and emerging markets While many projects in our development pipeline remain on hold, we nonetheless continue to seek opportunities that will deliver the right level of return, both in mature markets and emerging markets. In Europe, we started the development of ParkLake in Bucharest, Romania, in November, along with our joint venture partner Caelum Development. Representing an investment of 180 million, this shopping centre will host around 200 shops within 70,000m² of GLA and offer leisure and sports facilities connected with the adjoining Titan Park. Scheduled for inauguration in 2016, ParkLake will incorporate solutions to reduce energy and water consumption and maximise waste recycling. With an excellent location, transport links and a primary catchment area of over 500,000 people, we are confident that ParkLake will offer residents a compelling shopping and leisure venue and become a key attraction in Bucharest. We are also excited to announce our first development project in North Africa. Zenata shopping centre, located in Mohamedia, a city close to Casablanca, Morocco, represents a 125 million joint venture partnership with Marjane, Al Futtaim and Société d Amenagement de Zenata (Groupe CDG). The centre will have a GLA of 90,000m² with 245 shops serving a catchment area of 5.8 million inhabitants. Due to open in 2017, it will create an estimated 4,500 direct jobs for the local community. Expansion and refurbishment activity adds value to existing assets We remain focused on maintaining and improving the quality of our existing assets and in 2013, we completed or commenced refurbishment and expansion works at several assets in our portfolio: l In September, we announced the expansion and refurbishment of Franca Shopping, located in the state of São Paulo, Brazil. The 20 year old centre is one of the best performing assets in Sonae Sierra Brasil s portfolio. The investment of 31 million will enable the shopping centre to increase its capacity by almost two-fold to 30,000m² improving its commercial and leisure offer with 66 new shops (including five anchors) and 649 new parking spaces. Works are scheduled to be completed in the first half of l l l l Also in Brazil, we completed the refurbishment of Shopping Plaza Sul in São Paulo which has revitalised the tenant mix and reenergised the shopping centre. In May 2013, we completed the 4.5 million expansion and refurbishment of AlgarveShopping in Albufeira, Portugal. The refurbishment strengthened the tenant mix and improved the food court and mall area. Significantly, it added 3,000m² of GLA enabling the entry of the largest C&A and H&M shops in the Algarve region. Tenant sales have increased and the improvements reinforce the centre s anchoring within the Algarve region and bring an important contribution to the local economy, creating around 100 new jobs in the shopping centre and helping to draw more tourists to the local area. Another highlight was the completion of works to enhance the commercial and leisure offer at Centro Colombo in Lisbon. In keeping with our drive to bring innovative concepts to consumers, the IMAX cinema marked the introduction of digital 3D cinema in Portugal. Visitors to Centro Colombo were the first in the country to engage with this unique cinematic experience, which generated positive press coverage. Moreover, the opening of Primark in October had an overwhelmingly positive impact on traffic and sales, highlighting once again the pull of rising international brands and their importance in anchoring our centres. In all, the refurbishment created an additional 431 jobs in retail and services and by the end of the year Centro Colombo saw a 7.9% increase in footfall with tenant sales also up. A Primark store is also scheduled to open in NorteShopping in Porto, where in September we announced the second phase of the refurbishment works which began in With an estimated 5 million investment, this project aims to increase visitors comfort and create an ambiance that is better adapted to the modern consumer, whilst preserving the unique design and architecture of the shopping centre. The works are proceeding with a phased approach, so as not to impact on the regular operation of the shopping centre, and are expected to be completed in l Other smaller works either planned or underway in 2013 included investments at GranCasa and Max Center (both in Spain) to accommodate the expansion of the existing stores and some changes to enhance the tenant mix, as well as the continuation of the phased refurbishment at Centro Vasco da Gama in Portugal to upgrade parts of the mall area. Our investment plans for expansions and refurbishments include initiatives to improve the safety and the eco-efficiency of centres in line with our Safety, Health and Environment Management System and the requirements of ISO and OHSAS certification.

28 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.27 < > operational performance (CONTINuED) new service mandates in Europe, north africa and asia Providing professional services continues to be a key aspect of our strategy to grow new income streams and increase know-how and experience in new and emerging markets. Our track record in property management has enabled us to secure a number of new mandates across a range of geographies. By the end of 2013, we had 56 active contracts in place to deliver development, management and leasing services to clients, in countries as diverse as Morocco, Algeria, Georgia, Turkey and Azerbaijan. Our professional services business as a whole (including property development, management and leasing services) is now valued at 20 million, representing an increase of 30% in comparison with Whilst the market for these services has become more crowded, Sonae Sierra s competitive advantage lies in the breadth of services we can deliver across the whole property lifecycle. Some of the most significant mandates won in 2013 included: l l A contract with The Edge Group for the leasing and management of two shopping centres in Portugal, Forte Center in Carnaxide and Setúbal Center, the construction of which is expected to begin in Two leasing service contracts in Italy; one with Helios Immobiliare for a retail development on a former refinery in Fontevivo district in La Spezia, and another for the Meduna shopping centre expansion located in Pordenone. l l Two contracts for the provision of leasing services in Morocco; one with ALDAR (Marjane/Foncière Chellah) and one with Facenor, for their respective shopping centres Centre Commercial Marina (Casablanca) and Centre Commercial IBN Batouta (Tangier). One contract, via Sierra Cevital, with the Algerian group Prombati for the leasing and management services of Park Mall, a new development located in Sétif that is scheduled to open in boulevard londrina Shopping, Brazil plaza mayor, Spain algarveshopping, Portugal

29 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.28 < > operational performance (CONTINuED) portfolio under management GLA (000 m 2 ) Number of contracts 2,303 / 8,288 2,261 / 8,428 2,234 / 8,495 2,220 / 8,521 2,284 / 8,924 2,163 / 8,455 2,183 / 8,162 2,001 / 7,293 2,455 / 7,189 In 2013 we entered the Turkish market with the creation of Sierra Reval, a service provider in the shopping centre sector covering development, management and letting activities. Sierra Reval combines Sonae Sierra s international shopping centre know-how with the local market insight of Reval, which has been providing services for over 20 years in the country. With contracts in place in eight shopping centres country wide from development to property management and leasing services Sierra Reval is responsible for a portfolio with a GLA of over 215,000m 2. We are confident that this joint-venture will bring continuous growth to our successful professional services business over the next few years. Entry into the Turkish market consolidates our geographical diversification, enabling us to become active in a market which continues to expand and offers significant potential for retail investment. Furthermore, Sierra Reval also supports our broader expansion in the wider region by providing service contracts for two shopping centres in Azerbaijan and Georgia. Together, this activity reinforces our presence in Europe, North Africa and Asia, and demonstrates the confidence that international and local operators have in the added value that Sonae Sierra s expertise and insight can bring to their projects. Delivering shopping centre services in Algeria and Morocco also presents an opportunity for us to introduce new brands, concepts and trends into these North African markets which offer solid growth prospects for Moroccan and international tenants alike. The delivery of professional services allows us to test new markets and garner knowledge and experience that can support direct investments in the future. Proof that this strategy is starting to materialise is the recent announcement of a development project in Morocco following our first entry into this country as a service provider in In 2014 we will aim to expand our professional services business in current markets and enter new ones. Indeed, the beginning of 2014 saw an agreement reached with Citic Capital to provide property management services in China, with a view to offering joint venture services in the future, which offers a launch pad for our business in a market with great potential. We are aware of the risks associated with emerging markets where regulation is weak, and have a strategy and procedures in place to identify and mitigate such risks, including governance and political risks building on the experience we have gained to date. We also ensure that at least the key requirements of our Safety, Health and Environment Management System are deployed when working in joint venture partnerships and delivering professional services. This helps us to offer our clients a higher quality, environmentally- and socially-conscious service whilst contributing to raising the standards for SHE (Safety, Health and Environment) practices in markets where these aspects are not well regulated. Indeed, our track record in SHE and our broader sustainability performance represents a differentiator for our Company offering added value on our services provided.

30 OUR PERFORMANCE IN 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.29 < > OPERATIONAL PERFORMANCE (continued) Expert property management delivers solid results The macro-economic conditions in the Eurozone as a whole, and Portugal and Spain in particular, have presented ongoing challenges for our shopping centre management business in However, whilst rents fell by 4.1% and tenant sales saw a 3.6% decline on a like-for-like basis between 2012 and 2013, we outperformed the sector in all countries except Spain and maintained occupancy levels at 95.2% across the region. Together, the quality of our assets and our dynamic management approach continue to shield our business through the economic crisis and stand us in good stead as we begin to see some promising signs of recovery in our key markets. In Portugal, sales declined in the first half of 2013 but did show a surprising pick-up in the second half of the year with encouraging figures for November and December. Sales for these months were up by 4.9% and 1.8% respectively compared to the same period in Overall, across our owned portfolio, tenant sales in Portugal outperformed the retail index by 4.4 percentage points, and declined by just 0.6% compared with 2012, demonstrating particularly strong performance that has exceeded our expectations in the context of austerity measures in the country. Rents meanwhile fell by 5.7%. Moreover, the occupancy rate of our Portuguese portfolio increased to 97.4% (up two percentage points compared with 2012), supported by the 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 by 6.2% compared with 2012, although the overall performance of our portfolio 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 Spanish portfolio decreased from 93.7% in 2012 to 92.4% in 2013 and rents fell by 5.9%. OUR DYNAMIC MANAGEMENT APPROACH CONTINUES TO SHIELD OUR BUSINESS THROUGH THE ECONOMIC CRISIS AND STANDS US IN GOOD STEAD AS WE BEGIN TO SEE SOME PROMISING SIGNS OF RECOVERY IN OUR KEY MARKETS João Correia de Sampaio Director, Property Management and Leasing Across Italy and Germany, where we own a smaller number of assets, broader market comparisons are less meaningful. We can highlight as key achievements the performance of Hofgarten Solingen in Germany following its opening in October, which has seen daily traffic of around 15,000 20,000 visits. This is significant for a catchment area of 270,000 inhabitants, and is testament to the successful integration of the centre as a focal point within the local community. On a like-for-like basis, overall tenant sales in Germany were up 0.3% compared with Our occupancy rates averaged 94.5% and rents were down by 0.9%. In Italy, tenant sales fell by 1.2%, influenced by the broader macroeconomic climate. Despite this, tenant sales outperformed the market benchmark and some shopping centres experienced growth towards the end of the year. We also achieved an average occupancy rate of 96.1% and rents rose by 6%. 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. Sales % 13/ total like-for-like Portugal 1, , % -0.6% Spain % -6.2% Italy % -1.2% Greece % -18.1% Germany % 0.3% Romania % 1.7% Europe 3, , % -1.8% Brazil ( ) 1, , % -7.5% Brazil (R$) 4, , % 5.5% Total 5, , % -3.6% Sales in million Visits % 13/ total like-for-like Portugal % -0.5% Spain % -2.9% Italy % 2.4% Greece % -6.8% Germany % -1.5% Romania % -2.9% Europe % -1.0% Brazil % -0.2% Total % -0.9% Visits in million

31 OUR PERFORMANCE IN 2013 SOnAE SIERRA 2013 Economic, Environmental and Social Report.30 < > OPERATIONAL PERFORMANCE (COnTInuED) 2013 saw robust growth in Brazil, albeit at a slower pace than in With a large proportion of the population in this country now having sufficient disposable income to enter the consumer market for the first time, retail sales increased by 4.3% in Across our own portfolio, we saw tenant sales increase by 5.5% compared to 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. The inauguration of these centres has coincided with the rapid growth in retail space across Brazil which many retailers have not been able to keep pace with. However, these centres have strengthened our presence in two strategically important regions and we are confident that occupancy rates will return to our longterm average, influenced not only by macro-economic conditions, but also by the quality of our property and asset management. Examples of such initiatives carried out in 2013 include the delivery of training to tenants employees to enable them to increase sales and enhance customer service, and a series of activities using digital media to create greater proximity between retailers and consumers. 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 José Baeta Tomás Director, Chief Executive Officer, Sonae Sierra Brasil Occupancy Rate Portugal 97% 97% Spain 92% 94% Italy 96% 97% Greece 61% 63% Germany 95% 98% Romania 75% 81% Europe 95% 96% Brazil 92% 97% Sonae Sierra 94% 96% Rents Fixed Rents Variable Rents Total Rents % 13/12 Rents total like-for-like Portugal % -5.7% Spain % -5.9% Italy % 6.0% Greece % 12.1% Germany % -0.9% Romania % -1.3% Europe % -4.0% Brazil ( ) % -4.8% Brazil (R$) % 8.6% Total % -4.1% Rents in million

32 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.31 < > operational performance (CONTINuED) cost-cutting efforts support tenant retention in a challenging economic climate In the context of ongoing economic challenges, sustaining high occupancy rates is a priority for our property management business. Indeed, the sustained results we have achieved in terms of tenant sales, rent collection and occupancy in Southern Europe over the past few years owe much to our 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 cases, discounts in rent we have relentlessly endeavoured to reduce service charges in our shopping centres so that our tenants effort ratio (the ratio of rents plus common charges paid by the tenant to the sales they achieve) remains stable. This strategy has involved working with service suppliers 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 our European shopping centres. Increasing the eco-efficiency of our shopping centres is particularly relevant because it not only allows us to cut costs but also reduce our environmental impact, support the long-term resilience of our assets in the 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 term goals covering GHG emissions, energy use, water use and waste: l We achieved a GHG emissions rate of tonnes per m 2 of GLA, a 51% reduction compared to 2012, meaning we achieved our target of tonnes per m 2. Overall, we have achieved a reduction of 75% since 2005, our baseline year, meaning we have surpassed our long-term goal of a 70% reduction by Consequently, we have since set a new long-term goal for an 80% reduction by l l l We achieved an average electricity consumption of 444kWh per m 2 of mall and toilet area, a 7% reduction compared to We achieved our 2013 target of 488kWh per m 2 and remain on track to meet our long-term goal to attain a maximum electricity consumption of 400kWh per m 2 by Our shopping centres consumed 3.7 litres of water per visit. We exceeded our 2013 target of 3.82 litres per visit and remain on track to meet our long term objective to achieve a level of water consumption at or below three litres per visit by Water efficiency (excluding tenants) of the owned portfolio (litres/visit) We generated 41,595 tonnes of waste 9, of which 59% was recycled and 20% was sent to landfill. The increase in recycling rates up 5.9% since 2012 has enabled us to divert 1,361 tonnes of waste from landfill or incineration. We exceeded our 2013 target to attain a minimum recycling rate of 55.1% across our owned shopping centres and guarantee the proportion of waste (by weight) sent to landfill does not exceed 28.6%. Our long-term objective is to ensure that we maintain a recycling rate of at least 60% by ghg emissions of our owned portfolio and corporate offices ghg protocol scopes 1 and 2, plus business air travel (tco2e/m 2 gla) 6 Electricity efficiency (excluding tenants) of our owned portfolio (kwh/m 2 mall and toilet area) 7 total waste recycled as a proportion of waste produced (% by weight, across our owned portfolio) 10 proportion of waste that is sent to landfill (% by weight, across our owned portfolio) % % % % % % % % % 39% 6 This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Fuel consumption was considered for all corporate offices (Lisbon, Maia, São Paulo, Milan, Madrid, Düsseldorf and Bucharest). The numerator in this calculation includes the scope 1 and 2 emissions of shopping centres and corporate offices according to GHG protocol methodology plus shopping centres scope 3 emissions from air travel. The denominator is the GLA of applicable shopping centres. Emissions associated with energy purchased on behalf of tenants are not included. As a result, the scope of Sonae Sierra s long term target is unchanged. Sonae Sierra has defined this specific sector indicator to monitor performance in relation to GHG emissions that are intended to measure emissions intensity. 7 This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period. There is a slight mismatch between the numerator and the denominator since electricity consumption used in technical areas and electricity used for chilled and hot water that is supplied to some tenants, are considered, but the floor area in the tenant and technical areas are not. 8 This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period. It refers to the water consumed at our shopping centres (excluding tenants), divided by the number of visits made during the reporting period. 9 Includes shopping centres and corporate offices with a safety, health and environment management system (Lisbon, Maia and São Paulo). 10 These indicators include all shopping centres owned by Sonae Sierra and in operation during the reporting year. Waste recycled includes waste sent for recycling, anaerobic digestion and composting.

33 our performance in 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.32 < > operational performance (CONTINuED) Altogether, we have managed to avoid combined costs of 18.2 million in 2013 as a result of eco-efficiency improvements introduced since 2002 (for electricity and waste) and 2003 (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). For more detailed information covering our safety, health and environmental management performance, including greenhouse gas emissions, energy, water, waste, biodiversity and safety and health, see pages 74 to 112. We carried out a pilot project to improve energy performance at LeiriaShopping which has had impressive results: a 29% saving on our energy bill since We continue to pro-actively engage with our tenants and consumers in order to obtain feedback on our services and to understand their priorities and anticipate their evolving needs. In 2013, 100% of our shopping centres achieved a tenant satisfaction rating of four 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 centres should support the local community: indeed, half of visitors surveyed stated that they preferred to visit more sustainable shopping centres and 75% feel more satisfied when they visit centres which demonstrate greater stewardship of aspects such as eco-efficiency, safety and the promotion of local and/or ethical businesses and products. Further references: You can read more about this on our website. uncompromised high-quality service delivered to tenants and visitors In spite of our cost-cutting drive, we have not compromised on our commitment to deliver a consistently high-quality service to our tenants and visitors. Our pledge to achieve zero-accidents across our sites is still of utmost importance to us, and in 2013 we continued our efforts to increase the safety conditions of our shopping centres. We set annual targets to drive continual improvement in our safety performance targeting service suppliers and visitors. In 2013 we achieved a LWCAFR of 2.17 among our service suppliers, a 31% reduction from 2012 and exceeding our target of an 3% reduction. In total, the global frequency rate of level 3, 4 and 5 category accidents 11 per million visits was 1.73, an 13.8% increase from In Spain, we launched a campaign to raise awareness about Sonae Sierra s environmental and social responsibility efforts and make a call to action to the younger generation to change their own behaviour. Further references: You can read more about this on our website. global lost Workday case accidents Frequency rate (lwcafr) among suppliers in shopping centres global frequency rate of level 3, 4 and 5 category accidents per million visits in shopping centres In accordance with Sonae Sierra SHE procedures, we identify the following levels of incidents in shopping centres according to their severity: Level 1: Critical near miss (an S&H incident that nearly caused personal damage); Level 2: S&H accident requiring first aid attention; Level 3: S&H accident requiring medical treatment; Level 4: S&H accident with lost work-day or life disrupting case, temporary or partial incapacity or minor occupational disease; Level 5: Fatality or permanent disability or serious occupational disease.

34 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > operational performance (CONTINuED) Correspondingly, 2013 saw us reinforce efforts to reduce the impact of our shopping centres on the natural environment, increase the safety of people in and around our buildings and promote activities which support local community members and businesses. For example, we: l l l l l Implemented a range of energy saving measures at our shopping centres, corresponding to a total investment of around 730,000. Initiatives such as the installation of LED lighting have achieved a saving of more than 14 million kwh. Invested around 65,200 in water efficiency improvements. Measures to reduce water consumption focused on more efficient fittings and fixtures in shopping centre WCs and the installation of water meters in common areas and food courts. Together, these have achieved savings of more than 66,800m 3. Worked with tenants to reduce waste and improve recycling rates through initiatives including the upgrading of tenant waste segregation areas and more accurate monitoring of tenant waste. Performed 9,697 hours of Safety, Health and Environment Preventive Observations (SPO) that allow us to identify and correct behaviour which could potentially lead to incidents and performed an average of 2.2 emergency practice drills per shopping centre. Invested a total of 1.1 million in local community initiatives, including more than 890,000 through our shopping centres marketing budgets, 157,000 in corporate donations and sponsorships and 15,000 through the marketing budgets of our projects under development. At NorteShopping in Portugal, we implemented a project to improve the productivity and quality of work delivered by our shopping centre service suppliers, including the reorganisation of waste management. The results of this work enabled us to save 80,000 in annual operating costs, as well as helping us to reduce our environmental impact through the 2% increase in the recycling rate. As part of our ongoing efforts to encourage our tenants to adopt more eco-efficient practices themselves, 2013 also saw the presentation of the second edition of the Planet Sierra Tenant Award, an accolade designed to distinguish tenants demonstrating best environmental practices. The Awards consider tenants that demonstrate both sound environmental management practices (covering criteria such as air quality, energy, water and waste), and also efforts made by retailers to encourage their employees and customers to adopt environmentally responsible behaviour. We recognised the efforts of 15 retailers in three categories 12 across all seven countries where we own and manage shopping centres. You can read more about the results of the Planet Sierra Tenant Award on our website. pioneering retail concepts increase sales and diversify our tenant mix In 2013, we witnessed consumers seeking an integrated shopping experience combining virtual and physical spaces. Delivering a timely, tailored and seamless customer experience across all channels has become a vital part of retailers sales activation strategies. Moreover, the dynamism of modern retail presents opportunities for businesses to better connect with consumers; to understand their evolving profiles and respond to their changing behaviour. In this context, investment in digital technology is a current priority for Sonae Sierra, and is one that has already borne fruit for our property management business. Indeed, a large part of our success in sustaining occupancy levels and improving tenant sales in Portugal in particular can be attributed to these efforts. We continued to rollout our digital strategy in Europe and Brazil building on the success of initiatives such PromoFans a multi-channel promotions platform launched in Portugal in late 2012 that enables tenants to build customer-loyalty and brand awareness by offering promotions via our shopping centres using a digital platform. Since launch, the success of this platform has been confirmed 902 tenants, representing 90% of our sales, now regularly use PromoFans to promote their products and services to around 300,000 people who are subscribed to the platform in Portugal. In November we extended PromoFans to our Spanish shopping centres, where it already achieved around 60,000 registrations among consumers within 10 days of its launch. We are now working on PromoFans integration into other markets and will continue to develop new digital marketing concepts for the benefit of our tenants and visitors. Further references: You can read more about this on our website. 12 The three categories are: (A) shops of 1,000m 2 or larger or belonging to chains of ten or more shops worldwide; (B) shops under 1,000 in size or belonging to chains of less than ten shops; (C) an international distinction covering hypermarkets and supermarkets across all Sonae Sierra owned shopping centres.

35 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > operational performance (CONTINuED) 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 digital features such as interactive news and information platforms, games and wi-fi, this pilot project will be fine-tuned and rolled out across other Sonae Sierra shopping centres in In keeping with our commitment to offer unique experiences to consumers, and as a part of our drive to keep our shopping centres vibrant in the context of economic crisis, 2013 saw us build upon our Flash Store project with the Coop Store, a shared retail space run by individuals and small businesses as a cooperative. This new store format supports entrepreneurship among local businesses and entices visitors with innovative retail concepts. Feedback on the pilot has been overwhelmingly positive and has generated valuable publicity in local and national press and television across Portugal. Indeed, our Flash Store project as a whole has enjoyed great success, attracting about 90 retail operators in Portugal and enabling us to introduce new brands and concepts in our shopping centres. Lab Stores, which are another offshoot, provide a testing ground for new brands, and over 30% of brands have used the concept since becoming long-term tenants. First rolled out in 2012, Flash Store aims to support innovation by enabling retailers to test the market s receptiveness to their product(s) by offering the use of a shop unit for a maximum period of six months under more flexible conditions. The Flash Store concept has now been introduced in Spain and will soon be launched in Germany and Romania. Coop Stores support local sustainable businesses by allowing them to share the same shop unit and associated operating costs in a flexible regime of cooperation. Further references: Favourable acquisition and disposals concluded in portugal, Spain and italy passeio das Águas Shopping, Brazil Yields in our European markets continued to fluctuate in We saw a 7% reduction in the value of our European portfolio, although the portfolio changes and the yields fluctuate to different degrees between geographies and assets. In Spain, we witnessed a return of investor activity towards the end of the year and, as a result, yields have started to compress for prime properties. In Portugal, we are starting to see some stabilisation and we also expect yields for prime properties to compress if the economic uptake experienced during the second half of the year continues into In Italy, asset values decreased and, mirroring Spain, we experienced a return of investor demand for prime assets. In Germany and Romania, meanwhile, valuations remained flat. In March we acquired an additional stake in CascaiShopping 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 this centre. CascaiShopping was developed by Sonae Sierra and has undergone several expansions and refurbishments since its inauguration in 1991, supporting its ongoing success. le terrazze, Italy You can read more about this initiative on our website and

36 OUR PERFORMANCE IN 2013 SONAE SIERRA 2013 Economic, Environmental and Social Report.35 < > OPERATIONAL PERFORMANCE (CONTINUED) With a varied and high quality retail and leisure offer within 73,800m 2 of GLA, CascaiShopping is still regarded as one of the main retail destinations in greater Lisbon. In 2013 the centre welcomed more than 11.6 million visitors and has an occupancy rate of nearly 100%. By increasing our investment to obtain a majority stake in CascaiShopping, we will be able to leverage the value of the asset, exploiting its sustained commercial potential. The quality of our shopping centres and effectiveness of our management practices, which together offer increased value of our assets to investors, meant we were able to take advantage of the returning investor demand in Spain and Italy where we completed three disposals by year end. In Spain, the Sierra Fund (the pan-european retail fund in which Sonae Sierra has a stake of 50.1%) and CBRE Iberian Value Added Fund sold Parque Principado in Asturias to a company owned by INTU Properties PLC and Canada Pension Plan (CPP) for million. This sale demonstrates the liquidity of a first class asset in the context of improving market sentiment and growing interest from leading institutional investors. In Italy, the Sierra Fund sold Valecenter and Airone shopping centres to Blackstone Real Estate Partners IV and Blackstone Real Estate Partners VII for million, a value in line with the latest independent valuation of the properties. These two centres were acquired by the Sierra Fund in Over the past eight years, we have identified and deployed actions to add value to these assets, including substantive changes to the tenant mix. As we move into 2014, we will continue to develop our digital strategy and expand on our pilot programmes to support the latest consumer trends and further embed our shopping centres within the local communities where they operate. THE SALE OF THREE ASSETS IN SPAIN AND ITALY REFLECT SONAE SIERRA S CAPACITY 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 Extension of the Sierra Fund Pedro Caupers Director, Investment and Asset Management In 2013 we reached a consensus with investors to extend the Sierra Fund operations for an additional five year period. Given the importance of the Sierra Fund within our portfolio, the extension of the Sierra Fund s life to October 2018 is a significant achievement. Following the sale of Münster Arkaden in Germany in 2012 and the sales of Valecenter and Airone in Italy at the end of 2013, the Sierra Fund s portfolio is now concentrated exclusively on the Iberian market. With respect to the Sierra Portugal Fund which encompasses nine properties in Portugal and is due to terminate in 2018 we will wait for market recovery before considering any asset sales. In the meantime, we will continue to focus on increasing tenant sales and reducing operational costs in the assets within this Fund. Open Market Value of Centres in Operation Total Value Sonae Sierra share OMV in million In Portugal, measures to improve the environmental performance at ten shopping centres, such as the use of renewable energy and water reuse and recycling, have delivered tax savings totalling 88,000 as well as helping us to reduce our environmental impact. Further references: You can read more about this on our website ,638 2,996 5,789 3,046 6,320 3,328 6,481 3,504 6,340 3,595 6,166 3,598 6,147 3,786 4,741 2,745 4,096 2,498

37 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts the following Financial Statements consolidate all Sonae Sierra companies by the proportional method. Sonae Sierra consolidated accounts profit & loss accounts Sonae Sierra recorded a Net Profit of 3.6 million in 2013, compared to million in The difference is mainly due to lower indirect losses in 2013 as a consequence of lower yields expansion in Europe and lower impairments/provisions compared to 2012, as all properties under development were recorded at fair value. In December 2013, our Direct Net Profit reached 57.6 million, an 8% decrease from December This was mainly due to changes in our portfolio following disposals in 2012 and 2013 and adverse foreign exchange (FX) fluctuations which were not totally compensated by our inaugurations in 2013, the first full year of results at shopping centres inaugurated in 2012 and cost cutting efforts across all parts of Sonae Sierra. balance Sheet The value of our assets reached 2.3 billion in December 2013, of which 2 billion corresponds to Investment Properties and 131 million corresponds to Properties under Development and Concessions. The increase in Investment Properties compared to 2012 is explained by the openings of Boulevard Londrina Shopping, Passeio das Águas Shopping and Hofgarten Solingen, the acquisition of an additional 50% stake in CascaiShopping which were partially compensated by our disposals and adverse FX fluctuations affecting our Brazilian portfolio. Properties under Development is lower than 2012, largely due to the openings of Boulevard Londrina Shopping, Passeio das Águas Shopping and Hofgarten Solingen. The lower Net Worth compared to 2012 is mainly explained by adverse variances in translation reserves as a consequence of the depreciation of the Brazilian Real (down 17% in 2013). Bank Loans are also lower compared to 2012 and this is mainly due to the disposals carried out by the end of year.

38 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) consolidated profit and loss account ( 000) % 13/12 Direct income from investments 228, ,326 0% Direct costs from investments 114, ,015 3% Ebitda 113, ,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, % Impairment -9,322-34,965 Value created on investments -39,102-84,382 54% indirect income -52, ,356 53% Deferred tax 1,749-3,891 indirect net profit -54, ,466 50% net profit 3,637-45,882 consolidated balance Sheet ( 000) 31 dec Dec 2012 Var. 13/12 Investment properties 1,952,413 1,933,026 19,387 Properties under development and others 130, ,511-87,740 Other assets 117, ,602-8,449 Cash & equivalents 124, ,260-28,651 total assets 2,324,947 2,430, ,453 net worth 794, ,809-46,399 Bank loans 1,031,267 1,059,613-28,346 Deferred taxes 252, ,438-8,551 Other liabilities 246, ,538-22,156 total liabilities 1,530,536 1,589,590-59,053 net worth and liabilities 2,324,947 2,430, ,453

39 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) Financial resources debt breakdown and maturity Sonae Sierra has maintained its conservative long-term funding strategy. The capital structure is supported by a long average debt maturity of 4.77 years, 71% of debt with fixed interest costs showing the prudent hedging of interest rate risk and a balanced debt maturity profile. The following chart illustrates Sonae Sierra s debt as of 31 December debt Structure Commercial Paper 5m Bank Loans 926m Bond Loans 106m debt maturity > % % 19% 25% 9% 10% cost of debt Sonae Sierra continues to demonstrate good access to low cost financing from banks and capital markets. The average cost of debt for Sonae Sierra is 30 basis points above 2012 and currently stands at 4.3%. Excluding Brazil, the average cost of debt is 3.6%, which supports the interest coverage ratio and remains relatively low versus our European peers. average cost of debt Europe % % % % Financial ratios % Fixed interest Europe % As of 31 December 2013, Sonae Sierra s financial ratios show a prudent and solid approach. 78% 70% 74% ratios 31 dec Dec 2012 Loan-to-value 43.9% 42.9% Interest cover Development ratio 9.4% 12.4% The Loan-to-Value (LTV) is 43.9% which compares unfavourably with 42.9% in The increase derives mostly from the reduction in the value of our assets due to the yields expansion in Europe and adverse FX fluctuations affecting our Brazilian portfolio. Although higher compared to 2012, the LTV presents a noticeable reduction since loan-to-value % % 43.7% 46.4% 50.1%

40 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) The Interest Cover in December 2013 was 2.54, well above our target of 2, thanks to the currently low average cost of debt. Sonae Sierra also measures its exposure to retail real estate development risk through the Development Ratio. This monitors the weight of the funds already spent in all committed and non-committed developments 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 spent on committed projects). We monitor our ability to control the development pipeline in order to stabilise debt leverage while portfolio asset values are volatile. The Development Ratio is lower than December 2012 which is mainly due to the opening of Boulevard Londrina Shopping, Passeio das Águas Shopping and Hofgarten Solingen. net asset value (nav) NAV ( 000) NAV per share ( ) dec 2013 Dec 2012 Dec 2011 Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec ,000 / 31 1,050 / 32 1,173 / 36 1,251 / 38 1,228 / 38 1,416 / 44 1,713 / 53 1,490 / 46 1,265 / 39 1,060 / 33 net asset value Sonae Sierra measures its performance, in a first instance, on the basis of changes to the Net Asset Value (NAV) plus dividends distributed. We calculate our NAV according to the guidelines published in 2007 by INREV (European Association for Investors in Non-listed Real Estate Vehicles), an association of which Sonae Sierra is a member. On the basis of this methodology, the NAV of Sonae Sierra, as of 31 December 2013, was 1,000 million compared to 1,050 million on 31 December The NAV per share of the properties attributed to Sonae Sierra is against recorded on 31 December The NAV reduction results mainly from the effects of adverse FX fluctuations (a Real depreciation of 17%). net asset value (nav) amount in dec Dec 2012 NAV as per the financial statements 794, ,809 Revaluation to fair value of developments 5,350 9,841 Deferred tax for properties 203, ,382 Goodwill related to deferred tax -16,459-34,503 Gross-up of assets 13,176 16,443 nav 1,000,236 1,049,972 Dec 2003 Dec 2002 Dec 2001 Sierra investments 948 / 29 1,037 / / 25 Sierra Investments made a negative contribution of million to the Consolidated Net Profit of Sonae Sierra. The Direct Net Profit of Sierra Investments is derived from the operation of shopping and leisure centres that are part of its portfolio, including those assets that are in the Sierra Fund and the Sierra Portugal Fund. Direct Profits also include the asset management services provided to the properties by Sierra Asset Management. Net Operating Income decreased by 3% compared to last year, mainly due to the disposals of Münster Arkaden in 2012 and Parque Principado in This was despite the acquisition, through a majority-owned subsidiary of an additional 50% stake in CascaiShopping and the opening of Hofgarten Solingen. 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. 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 expansion in Portugal, Spain and Italy. In 2012, Value Created in Investment Properties was heavily penalised by the yield expansion in Portugal, Spain and Italy as a consequence of the economic crisis and the write-off of Pantheon Plaza. This was despite a gain from the disposal of Münster Arkaden. Investment Properties decreased by 43 million compared to This is explained by the disposals of Parque Principado, Valecenter and Airone and a decrease in the value of the portfolio in 2012, which was partially compensated by the opening of Hofgarten Solingen. Bank Loans are below those at December 2012 mainly due to the disposals.

41 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) profit and loss account ( 000) % 13/12 Retail net operating margin 87,771 90,329-3% Parking net operating margin 1,499 1,522-1% Cogeneration net operating margin % 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 % 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, % Value created on investments -95, ,822 19% indirect income -99, ,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 Dec 2012 Var. 13/12 Investment properties & others 1,565,202 1,608,381-43,179 Other assets 154, ,734-20,070 Cash & equivalents 94,196 81,635 12,562 total assets 1,814,063 1,864,749-50,687 Net worth 568, ,373-27,925 Bank loans 863, ,214-18,014 Deferred taxes 197, ,541-15,799 Other liabilities 184, ,621 11,050 net worth and liabilities 1,814,063 1,864,749-50,687

42 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) Sierra developments Sierra Developments made a negative contribution of 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 profit and loss account ( 000) % 13/12 Project development services rendered 6,949 5,628 23% Value created in projects 9,927-25, % 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, % Other non-recurrent income/cost % Income tax 1, % net profit -5,585-40,063 86% consolidated balance Sheet ( 000) 31 dec Dec 2012 Var. 13/12 Properties under development 121, ,748-26,790 Other assets 103,487 85,019 18,468 Cash & equivalents 1,049 8,127-7,078 total assets 226, ,895-15,400 Shareholder funds 80,007 88,540-8,534 Bank loans 7,997 17,334-9,336 Deferred taxes Other liabilities 138, ,862 2,385 net worth and liabilities 226, ,895-15,400

43 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > 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) % 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 ,265 45% Other non-recurrent income/cost % Income tax 2,843 1,979 44% net profit 4,392 4,524-3% consolidated balance Sheet ( 000) 31 dec 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, total liabilities 46,212 46, net worth and liabilities 69,156 65,220 3,935

44 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > consolidated accounts (CONTINuED) Sonae Sierra brasil Sonae Sierra Brasil made a positive contribution of 34.2 million to the Consolidated Net Profit of Sonae Sierra. Net Operating Income has decreased by 15% compared with This is explained by the disposals of 2012 which were not totally compensated by the openings of 2013, and by higher other non-recurrent costs related to corporate restructuring implemented in 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. The Indirect Net Profit is higher than 2012 due to yields compression at core shopping centres and the opening of Passeio das Águas Shopping. The Investment Properties reached 391 million in December 2013, an increase of 3 million compared to This is explained by the opening of Boulevard Londrina Shopping and Passeio das Águas Shopping, and an increase in the value of existing properties that almost fully offset the adverse FX fluctuations. profit and loss account ( 000) % 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 % 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 Dec 2012 Var. 13/12 Properties 391, ,473 2,817 Other assets 18,390 16,836 1,554 Cash & equivalents 44,789 85,255-40,465 total assets 454, ,564-36,094 Net worth 287, ,526-29,223 Bank loans 85,069 86, Deferred taxes 57,347 51,720 5,627 Other liabilities 24,750 36,252-11,502 net worth and liabilities 454, ,564-36,094

45 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > 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. global retail investment will continue to shift towards growth and emerging markets as internationalisation accelerates The rapid expansion of retail into transitional, growth and emerging markets is set to continue through to 2020, by which time these markets may attract as much as 40% of total global retail investment. Driving this trend is the rise of the middle-class population and its strong demand for modern retail space. Within Europe, Turkey and Russia are expected to account for 10-15% of the continent s investment activity by 2020; whilst worldwide, China is set to become the single largest consumer market by Expansion into growth and emerging markets presents a compelling opportunity for shopping centre developers, where the absence of existing stock facilitates the potential to create new high quality destinations tailored to the modern retailer and consumer. The fast-paced international expansion of retail groups, particularly in the fashion sector, further supports the demand for new stock. Nonetheless, a lack of transparency, the difficulties in assessing product that is controlled by domestic groups and the challenges of finding local partners can constitute barriers for new market entrants. 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 in China. We will take a pro-active approach to risk identification and management in markets which present political, governance and/or ethical risks and we will hedge against market volatility through a capital-light approach to investment. 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. Key cities and locations will dominate a marketplace that values quality above all Across mature markets, polarisation is already in motion, with financial capital becoming concentrated in key cities and regional centres. Within these, assets which offer the best quality and convenience will dominate their catchment areas. The ability to sign on key retailers will make or break new shopping centre schemes, as big brands continue to hold sway over a large proportion of the consumer classes. Secondary assets will need to diversify in order to succeed; offering the consumer a unique experience that differentiates them from the competition. There will be opportunities to revitalise existing stock, as demand for quality remains strong. All in all, a flexible approach to property and asset management, coupled with the relentless pursuit of quality and efficiency, will be critical to success. Our development business will seek opportunities to develop new projects which will have the capacity to achieve and maintain a strong competitive position in their catchment area. We will continue to take a capital light approach to investment both in mature and emerging markets and in prime and secondary locations. Within our investment portfolio, we will maintain an active investment/divestment strategy, and on our operating assets, we will pursue opportunities for value creation through expansions, refurbishments and tenant-mix improvements. Our property management business will aim to maximise value for money on behalf of both tenants and investors, focusing on achieving high occupancy levels; tenant sales growth; effort rate optimisation; service charge reductions and stable rent collection. Anticipating the latest trends in retail, we will continue to focus on providing ultimate experiences to visitors; offering premium space and unique shopping centre concepts so that our centres remain the destinations of choice for consumers. As a part of this activity, we will seek to support tenants in maximising sales; offering flexible retail formats and ensuring a diverse tenant mix by promoting the integration of small-scale, unique and local businesses.

46 OUR PERFORMANCE IN SONAE SIERRA 2013 Economic, Environmental and Social Report < > FUTURE OUTLOOK (CONTINUED) A new generation of consumers will require an integrated virtual and physical retail space and expect shopping centres to provide experiences, not just shopping A revolution is occurring in the global retail industry. Spurred by the fast-growing use of mobile internet devices, modern consumers are creating new challenges and opportunities for shopping centres as they increasingly rely on a combination of digital platforms and new communication channels to define their physical shopping experience. Whereas the digital revolution and subsequent growth in on-line consumption was once seen as a threat to shopping centres, it is now clear that physical retail space is still in demand. Moreover, successful retailers will be those which allow consumers to move seamlessly between virtual and physical retail space. At the same time, consumers will continue to challenge retailers and shopping centre operators alike as they seek sensational and emotional experiences that go beyond merely acquiring more goods. Shopping centre visitors want to engage more actively in the consumption process; and increasing sales in ethical, eco-friendly and artisan products as well as growing interest in hands-on experiences (such as craft workshops and fashion shows) all point to a move in this direction. We will continue to invest in digital technology to support both our tenants and our own business. Following the success of PromoFans, we will dedicate significant resources to exploring other innovative ways of connecting consumers and retailers to increase footfall and promote sales activation. We will also proceed with our strategy to promote more sustainable lifestyles, promoting the consumption of products and services that are green, ethical and/or healthy. Over the next couple of years, our marketing team will focus on influencing consumers behaviour in and outside of our shopping centres. 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 to sell regional crafts and gourmet products and promote tourism, sports and cultural activities. 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. Environmental regulation, extreme weather events and pressure on natural resources will make eco-efficiency imperative for shopping centre owners and operators In its most recent report, the Intergovernmental Panel on Climate Change (IPCC) states that atmospheric concentrations of carbon dioxide, methane and nitrous oxide have increased to unprecedented levels in at least the last 800,000 years 13. Global atmospheric and ocean temperatures are projected to continue rising in the 21 st century, with a disrupting effect on overall climate stability. Whilst the impacts of climate change are already influencing the availability of freshwater and increasing incidents of drought, world population growth, urbanisation and the rising demand for consumer goods are all putting pressure on natural resources. With international climate change agreements, local environmental regulations and market norms becoming more stringent in response, achieving a high standard of eco-efficiency is set to become imperative for shopping centre owners and operators. In some countries where Sonae Sierra operates, investors are already demanding assets with a good environmental performance, expecting these to sustain their value in the longer-term. We are proud of the results delivered by our eco-efficiency strategy over the past twelve years. However, we know that our business is too reliant on limited supplies of natural capital as we require mainly fossil-fuel based energy, water and non-renewable raw materials in order to build and operate shopping centres, which in turn generate GHG emissions, waste and wastewater. In the long-term, this poses a risk to our business: to protect our assets against higher costs and penalties associated with natural resource consumption and environmental pollution, as well as the risk of water and energy shortages, we need to strive towards true resource resilience: on-site energy generation; water reuse systems and waste minimisation and/or a closed loop waste management approach. In 2013, we investigated the potential for different solutions through our Resource Resilience strategy, and in 2014 and beyond we will begin to test some of these solutions, aiming to roll them out across our whole portfolio. More specifically, our next steps will be to: proceed with the roll-out of water reuse and rainwater harvesting systems; trial the introduction of a polluter-pays system for tenants waste and reduce or eliminate plastic waste in food courts. Due to market and regulatory constraints, we cannot progress as quickly as possible with the on-site energy generation solutions identified, but will continue to endeavour to find a way to make these viable. With the retail sector undergoing a period of rapid change, we need to ensure that our Company has the talent, agility and flexibility required to remain ahead of the game. In recent years, we have prioritised the well-being and development of our employees, aiming to ensure high levels of staff satisfaction and productivity and reduce costs and risks associated with high staff turnover and absence. We have developed our capacity to deliver training in-house to meet our staff development needs. Whilst this strategy has been effective, in the future we will aim to enhance our capacity for leveraging knowledge by exploring partnerships with universities as a way to promote ongoing skills development and innovative thinking across our Company and with our local communities. 13 Climate Change 2013: The Physical Science Basis, Summary For Policymakers, Working Group 1 Contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.

47 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > governance Sonae Sierra s corporate governance policies were adopted by the company based on the models of its shareholders, Sonae and grosvenor. the shareholders corporate governance policies impose levels of transparency, independence, remuneration compliance rules and sustainability policies which have contributed to shaping Sonae Sierra s own management model, corporate values, business strategy, sustainability policies and transparency in public reporting. The top corporate body of the Sonae Sierra group of companies is the General Shareholders Assembly which, among other prerogatives, appoints the Board of the General Shareholders Assembly, the Fiscal Board, the Compensation Committee and the Board of Directors of the Company. Sonae Sierra s Board of Directors takes responsibility for the Company s strategy, longterm business plan, finance and reporting. It consists of eleven members, five of them being executives and six non-executives. The Executive Committee is responsible for the day-to-day operations of the Company, which encompasses sustainability activities. The Executive Committee meets eleven times a year and may invite other Company executives to attend its meetings. The Board of Directors and the Executive Committee are supported by three specialised Committees: the Investment, Finance and Audit & Compliance Committees. The Investment Committee and the Finance Committee are chaired by the CEO. The Audit & Compliance Committee is chaired by an independent, external person chosen by the Board of Directors. GENERAL SHAREHOLDER S ASSEMBLY BOARD OF DIRECTORS NON-EXECuTIVE: Paulo Azevedo (Chairman), Mark Preston, Neil Jones, Nicholas Scarles, Ângelo Paupério EXECuTIVE: Fernando Guedes Oliveira (CEO), Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, João Correia de Sampaio, José Baeta Tomás COMPANY SECRETARY: Joaquim Pereira Mendes COMPENSATION COMMITTEE Paulo Azevedo, Mark Preston INVESTMENT COMMITTEE Fernando Guedes Oliveira (Chairman), Neil Jones, Ângelo Paupério, Edmundo Figueiredo, Nicholas Scarles, Pedro Caupers, Ana Guedes Oliveira SECRETARY: Joaquim Pereira Mendes FINANCE COMMITTEE Fernando Guedes Oliveira (Chairman), Neil Jones, Nicholas Scarles, Ângelo Paupério, Edmundo Figueiredo SECRETARY: Joaquim Pereira Mendes FISCAL BOARD David Jenkins (Chairman) EFFECTIVE MEMBERS: Jorge Felizes Morgado, António Barbosa Santos Alternate: Oscar Alçada Quinta SROC: Deloitte & Associates AuDIT & COMPLIANCE COMMITTEE David Jenkins (Chairman), Ângelo Paupério, Nicholas Scarles SECRETARY: António Pedrosa Duarte OMBuDSMAN Danilo Picolo EXECuTIVE COMMITTEE Fernando Guedes Oliveira (Chairman), Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, João Correia de Sampaio SuSTAINABILITY STEERING COMMITTEE Fernando Guedes Oliveira (CEO), José Baeta Tomás, Pedro Caupers, Ana Guedes Oliveira, João Correia de Sampaio, Pedro Soveral Rodrigues, Manuela Calhau, Joaquim Ribeiro, Elsa Monteiro, Sandra Dias, Nuno Alves INNOVATION STEERING COMMITTEE Fernando Guedes Oliveira (CEO), Pedro Soveral Rodrigues, João Correia Sampaio, Manuela Calhau, Ana Guedes Oliveira, Pedro José Caupers, Carlos Alberto Jesus

48 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > governance (CONTINuED) Each Executive Member of the Board has responsibility for certain businesses or areas of the Company, as well as Sonae Sierra s long-term sustainability priorities. We operate a Sustainability Steering Committee (SSC) which is responsible for overseeing the delivery of work under our four long-term sustainability priorities as well as Safety, Health and Environment (SHE) and Risk Management. The SSC reports directly to the Executive Committee and is chaired by our CEO. The Committee meets regularly to: discuss decisions that need to be taken collectively, inform the Executive Committee of any issues related to the implementation of the Sustainability Strategy and to provide the overall vision for the company s SHE Strategy, including setting and periodically reviewing SHE Policy and long-term objectives. The senior-level employees who champion each of our long-term sustainability priorities are required to report three times a year to the Sustainability Steering Committee on progress made with respect to their area of priority. Our Sustainability Office supports the SSC around the definition and implementation of the Sustainability Strategy in each long-term priority and SHE Management. The Sustainability Office also supports the champions and provides relevant advice and guidance as and when required around the implementation of each priority area. This governance model enables our executives and their teams to focus on creating and sustaining value for the Company and key stakeholders through each specific business activity, with attention paid to the long-term challenges which our Company faces and with expert support on economic, environmental and social issues. Moreover, individual members of staff across all business activities and functions have responsibility for implementing specific aspects of our sustainability strategy. SHE objectives form part of all employees performance appraisals (including Executive Committee members appraisals) which link through to remuneration and bonus schemes. Ethical conduct Our Code of Conduct includes a set of ethical principles which apply to everything we do and outline our commitment to success whilst operating with integrity, openness and honesty. The Code also promotes ethical and responsible decisionmaking by providing guidance on dealing with issues such as bribery, corruption, legal compliance, equality and human rights. Whilst the Executive Committee is ultimately responsible for managing these issues, ethical conduct is a personal responsibility and every employee is held accountable for his or her behaviour. The Sierra Ombudsman promotes compliance with our Code of Conduct and encourages behaviour aligned with our ethical principles. The Ombudsman is an independent facilitator to whom all stakeholders can present their complaints with an assurance that they will be processed, investigated, and responded to in a timely and sensitive manner. For more information on the Ombudsman, see our website. Safety, health and Environment management System Our Safety, Health and Environment Management System (SHEMS) is the framework we use to manage our impacts and improve our performance in relation to safe people and eco-efficiency. The SHEMS is based on a cyclical approach that involves planning, implementation, monitoring and review to ensure continuous improvement. It is regularly updated, most recently in 2013 with reference to the increasing focus on professional services and capital light approach that forms part of our business strategy. Our Safety, Health and Environment (SHE) Policy, which can be downloaded here on our website, sets out the SHE principles and over-arching objectives which govern the system. Our Company first developed an Environment Management System (EMS) in 1999 and in 2005 we were the first company in our sector in Europe to obtain ISO certification for our corporate EMS, which covered all our business activities. In 2004, we launched our Safety and Health (S&H) Policy and in 2008 became the first company in Europe to achieve OHSAS certification for our corporate S&H Management System. In 2010, we began working on the integration of these two management systems with an aim to exploit the synergies between them and increase our operational efficiency. In 2011 our integrated Safety, Health and Environment Management System (SHEMS) became fully operational. It is based on the international standards ISO 14001:2004 and OHSAS 18001:2007 and was recertified by Lloyds Quality Register Assurance according to both of these standards in We deliver SHE training to our staff and other key stakeholders on an ongoing basis, and in 2013 we delivered a total of 31,680 man hours of training (including meetings) on SHE to staff, suppliers and tenants across our shopping centres, development projects and in our corporate offices.

49 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > governance (CONTINuED) Sonae Sierra s Safety, health and Environment management System Continuous Improvement Management Review Policy: Safety, Health and Environment Planning Checking and Corrective Actions Monitoring and measurement Conformity evaluation Incident investigation Non conformities, Corrective and Preventive Actions Records control Internal Audits Assessment and control of S&H Risks and Environmental Impacts Legal requirements and others Objectives and Targets Program Implementing and Operating Resources, Roles, Responsibility, Accountability and Authority Competence, training and awareness Communication, Participation and Consultation Documents control Operational control Emergency Preparedness and response Our SHEMS covers all safety, health and environmental impacts across all stages of our business cycle for assets which Sonae Sierra owns or occupies. As our business strategy evolves, we are adapting our safety, health and environment strategy to reflect the degree of control that we have over the assets that we manage. In particular, when we have no direct control, it is important for us to discuss with our partners and clients the best approach and strategy to meet their needs and the local market standards. We have developed guidelines to ensure that we apply a consistent approach across all our activities to address all possible situations. pre-development During the New Business phase of our own projects, Environmental Due Diligence and an Environmental Impact Study are undertaken so that we can understand the potential environmental liabilities that sites may contain (such as contaminated land or materials) and therefore guarantee sufficient budget in our Investment Plans to adequately deal with these issues. Environmental Due Diligence is also implemented upon the acquisition of existing shopping centres. It is reinforced by the execution of S&H Due Diligence, which complements the Technical Due Diligence recommendations and provides Sonae Sierra with information on the capability of the existing shopping centre s systems to perform according to Sonae Sierra s expectations.

50 our performance in SONAE SIERRA 2013 Economic, Environmental and Social Report < > governance (CONTINuED) development We aim for all our new development projects, major expansions and refurbishments where we have direct control to target, as a minimum, BREEAM Good, LEED Silver or DGNB Bronze. We continue to apply our own Safety, Health and Environment Development Standards (SHEDS) to guarantee effective risk management and good shopping centre performance, targeting our long-term priorities and critical impacts. Whilst our development teams select the BREEAM, LEED or DGNB credits that best help them achieve their certification goals, each of our projects under development is required to ensure that SHE risks and characteristics unique to each site are managed adequately. To this end, since 2004, 25 Sonae Sierra construction sites have achieved ISO certification and nine have achieved OHSAS certification. Of our shopping centres inaugurated over the past two years Le Terrazze in Italy was the first in the world to achieve joint ISO and OHSAS certifications for the SHEMS of their construction works, uberlândia Shopping (inaugurated in 2012) was the first to achieve both in the Americas, and in 2013, Hofgarten Solingen was the first development of its kind in Germany to do so. On developments managed through a joint venture agreement without our direct control, we engage with our partners to decide whether to implement our full SHEMS system beyond the minimum legal requirements and compliance audits that we implement. In the event that our partner does not wish for us to implement our full certified SHEMS, we still make sure that we comply with legislation in relation to both construction work and building regulations of the relevant country. We also implement critical SHE procedures (including accident investigation and emergency response) and best practice, run data reports and carry out data audits in relation to safety, health and environmental issues. property management We monitor the performance of our owned operational shopping centres with respect to energy; water; waste and safety and health, and identify further improvements that need to be made to optimise the buildings environmental performance and reduce S&H risks. Across our operational portfolio, we have been measuring, monitoring and targeting energy use and waste management since 2000, water use since 2003 and S&H since Our energy and water metering strategy is designed to ensure effective sub-metering with connection to each centre s BMS, which allows us to have a better control of these utilities use. In 2012, we launched a new online management system, called the SHE Portal. This tool allows us to streamline our SHE management processes and improve the accuracy of data and information reported by holding all data in one central platform which is accessible to all our staff. Data collection and monitoring for energy, water, waste and safety and health is managed through this database which allows each of our shopping centre management teams to input SHE performance data and generate reports that can be used to compare performance across Sonae Sierra s portfolio and to set annual targets to improve performance and increase staff and tenant awareness of all issues. We also monitor and evaluate safety and health performance on a regular basis using tools such as SHE Preventive Observations (SPO), emergency drills and SHE inspections (covering safety-related equipment and installations in tenant units and warehouses). As of 31 December 2013, ISO certifications had been achieved in 87% of our shopping centres in operation and OHSAS certification had been achieved in 59.6%. In cases where we provide shopping centre management services to clients, we do not systematically apply our certified SHEMS because this falls outside the boundaries of our responsibility. However, we make sure that we monitor and comply with applicable legislation. With our long-term experience in managing safety, health and environmental impacts, we are also very well placed to provide additional services, such as alignment with ISO and OHSAS 18001, when these services are specifically requested by our clients. asset management The annual capital expenditure budget allocated to each of our owned shopping centres includes investments to improve the centres SHE performance. For a detailed account of environmental investments made in 2013, see page 76 of this report.

51 OUR PERFORMANCE IN SONAE SIERRA 2013 Economic, Environmental and Social Report < > BOARD MEMBERS AND EXECUTIVES Non-Executive Directors Paulo Azevedo Chairman Paulo Azevedo joined Sonae in 1988 as New Investments Analyst and Project Manager. Subsequently, he held different management positions in several group companies. From 1996 to 1998 was Executive Director at Modelo Continente Hypermarkets and in 1998 was appointed CEO of Optimus. From 2000 to 2007, was Sonaecom CEO. In 2007 was elected Sonae CEO. Academic achievements Degree in Chemical Engineering, École Politechnique Federal de Lausanne; MBA, ISEE, University of Porto. Mark Preston Non-Executive Director Mark Preston joined Grosvenor in the UK in Seconded to Hong Kong in 1995, he returned to lead Grosvenor s fund management operations in 1997, spent four years in San Francisco from 2002, became Chief Executive of Grosvenor Britain & Ireland in 2006 and Group Chief Executive in He is a Trustee of the Westminster Foundation and also a member of the Board of The Association of Foreign Investors in Real Estate, the ULI Greenprint Advisory Board and the (University of) Cambridge Land Economy Advisory Board. Academic achievements BSc (Hons) Degree in Land Management, Reading University; member of the RICS; International Executive Programme at INSEAD. Ângelo Paupério Non-Executive Director Ângelo Paupério has been a Non- Executive Director of Sonae Sierra since He is also Chairman of Sonaecom s Executive Committee, Executive Vice-Chairman of Sonae SGPS and sits on the Board of Sonae Distribuição, all of which are companies in the Sonae Group. Academic achievements Degree in Civil Engineering, University of Porto; MBA, ISEE, University of Porto. Nicholas Scarles Non-Executive Director Nicholas Scarles (FCA, Attorney at Law), joined Grosvenor in 2004 where currently is Group Finance Director. He was previously at Centrica, Price Waterhouse and Coopers and Lybrand in London, New York and Toronto. He is a Governor of the Haberdashers Elstree Schools, Member of the Court of Assistants of the Haberdashers Livery Company. Academic achievements Degree in law from Trinity College, Cambridge; Masters of Law from the University of Virginia; Fellow of the Institute of Chartered Accountants in England and Wales; Member of the Institute of Taxation (UK); Certified Public Accountant (Colorado, USA). Neil Jones Non-Executive Director Neil Jones has been a Non-Executive Director of Sonae Sierra since 1999 and is a member of both the Investment and Finance Committees. He is an advisor to Grosvenor, and a Non- Executive director of both Majid Al Futtaim Properties and of the Leducq Foundation. He is also Founder and shareholder of both Almacantar and Temprano Capital Partners. He was CEO of Grosvenor Continental Europe from 1997 to 2009 and an Executive Director of Grosvenor Group Ltd. Based in Paris since 1998; he has also lived and worked in London, Brussels and Hong Kong. Academic achievements BSc (Hons) Degree in Estate Management; RICS; General Management Programme, Harvard Business School.

52 OUR PERFORMANCE IN SONAE SIERRA 2013 Economic, Environmental and Social Report < > BOARD MEMBERS AND EXECUTIVES (CONTINUED) Executive Directors Fernando Guedes Oliveira Chief Executive Officer Fernando Guedes Oliveira joined Sonae Sierra in 1991, as Development Manager of the Company s ViaCatarina Shopping and Centro Vasco de Gama shopping centres. He had previously spent seven years in other management roles with the Sonae Group. In 1999 he took responsibility for all Sonae Sierra s development operations in Europe and was appointed CEO of Sonae Sierra in April 2010 with direct responsibilities over the Human Resources, Corporate Communication, Marketing and Innovation and Sustainability. He is the chair of the Sustainability Steering Committee. Academic achievements Degree in Civil Engineering, University of Porto; MBA, ISEE, University of Porto; AMP, Harvard Business School. Edmundo Figueiredo Director, Chief Financial Officer Edmundo Figueiredo joined the Sonae Group in 1989, as Financial Controller of the company s real estate activities. As Sonae Sierra s Chief Financial Officer and a member of the Sonae Group Finance Committee, Edmundo s responsibilities include Internal Audit; Legal, Fiscal and Mergers & Acquisitions; Finance, Planning & Control, Information Systems and Back-Office. Academic achievements Degree in Finance, Lisbon School of Economics (ISCEF). Pedro Caupers Director, Investment and Asset Management Pedro Caupers joined Sonae Sierra in In 1999 he was appointed Board Director, with responsibilities for all the Company s European property management and leasing activities. Since 2009 he has been in charge of the investment division and its European portfolio. He is also manager of the Sonae Sierra Funds. He is a member of the Sustainability Steering Committee. Academic achievements Degree in Electrical Engineering, Instituto Superior Técnico; PhD, Paris University; MBA, INSEAD. Ana Guedes Oliveira Director, Developments Ana Guedes Oliveira has been with Sonae Sierra since Having managed the development of two major centres in Portugal, she moved to portfolio management in In 2008 she took over responsibilities for all Sonae Sierra s European investment activities. Since 2009 she has overseen all aspects of the Company s development programme (outside of Brazil). She is a member of the Sustainability Steering Committee. Academic achievements Degree in Civil Engineering, Porto University; MBA, ISEE, University of Porto; AMP, INSEAD. João Correia de Sampaio Director, Property Management and Leasing João Correia de Sampaio joined Sonae Sierra in 1992, since when among other duties in the property management area he was Managing Director of Sierra Management Portugal and Sierra Management Spain. Since 2009 he has been responsible for all Sonae Sierra s property management and leasing activities (outside of Brazil). He is a member of the Sustainability Steering Committee. Academic achievements Degree in Military Sciences, Academia Militar, Lisbon; MBA, Nova University of Lisbon. José Baeta Tomás Director, Chief Executive Officer, Sonae Sierra Brasil Having joined the Sonae Group in 1982, José Baeta Tomás was appointed General Manager of Sonae Distribuição in He joined the Executive Committee in 1985 and, in 1995, created Sonae Distribuição in Brazil. From 2003 to 2009 he managed Tafisa Brazil and supervised the Sonae Group activities in Brazil. In 2010 he was appointed CEO of Sonae Sierra Brasil. He is a member of the Sustainability Steering Committee. Academic achievements Degrees in Finance, ISE, Lisbon, and Retail Marketing, Management Centre Europe, Oxford. Executive Program Michigan University USA.

53 OUR PERFORMANCE IN SONAE SIERRA 2013 Economic, Environmental and Social Report < > BOARD MEMBERS AND EXECUTIVES (CONTINUED) Other Executives João Pessoa Jorge Services, Asia João Pessoa Jorge joined the Sonae Group in 1983 as one of the executives involved in starting the Group s real estate business. From 1998 until 2010, he was CEO of Sonae Sierra Brasil. In 2010, João took responsibility for promoting the Company s professional services business in Asia. Academic achievements Degree in Civil Engineering, University of Porto; MBA, Kent State University, Ohio. Joaquim Pereira Mendes Legal, Tax, Mergers & Acquisitions Joaquim Pereira Mendes joined Sonae Sierra in 1989 and is responsible for the Company s Legal, Tax and Mergers & Acquisitions activities. Academic achievements Degree in Law, Coimbra University; Visiting Professor, Portucalense University, Porto. José Falcão Mena EMEA Sierra Services José Falcão Mena joined Sonae Sierra in He has overseen the Company s expansion in Iberia since 1998 and been responsible for shopping centre development in the same region since In 2010 he became responsible for the expansion of professional services to clients in the EMEA region. Academic achievements Degree in Civil Engineering, Instituto Superior Técnico, Lisbon; Management Graduated, ISCTE, Lisbon; Advanced Marketing Studies, Católica Lisbon School of Business and Economics. Joaquim Ribeiro Finance, Planning and Control Joaquim Ribeiro joined the Sonae Group s holding company in 1985, before transferring to Sonae Indústria. He then moved to London for six years, where he worked for Sonae International. In 1995 he joined Sonae Sierra s financial department, where since 2008 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. Academic achievements Degree in Economics, Faculdade de Economia do Porto; MBA, Nova University of Lisbon; MSc in Property Investment, City University, London. Ingo Nissen Development, Romania Ingo Nissen joined Sonae Sierra in 2000, when the Company began operations in Germany. Since 2007 he has responsibilities for the Company s shopping centre developments in Romania. Academic achievements Degree in Civil Engineering, Technical University, Braunschweig; PhD, Technical University, Munich. Thomas Binder Development, Germany Thomas Binder has more than 30 years experience of project and lease management in the German shopping centre, business parks and commercial property sector. He joined Sonae Sierra in 2006, and has responsibilities for the Company s shopping centre developments in Germany. Academic achievements Degree in Real Estate Management, Wirtschaftsakademie, Kiel; studied Law in Bochum and Kiel. Vitor Nogueira Property Management North Africa and Eastern Europe Having overseen the inauguration of more than 10 new shopping centres in Iberia, Vitor Nogueira previously led the Sierra Management support team responsible for 17 shopping centres in Spain. Since 2007, his responsibilities have been focused on the Company s non-iberian operations, particularly those in Italy, Greece and Romania. Since 2012 he became responsible for property management in North Africa and Eastern Europe. Academic achievements Degree in Management Administration, UL/UM, Lisbon; MBA, IEDE, Madrid; Master of Science in Finance, Central Western University, Texas; Leadership, London Business School; Global Strategic Management at Harvard Business School. Manuela Calhau Marketing and Innovation Manuela Calhau joined Sonae Sierra in 2008, following senior positions in the telecommunications sector, where she was a board member at several Sonaecom companies and a consultant at McKinsey & Co. Manuela was the first Portuguese woman to join McKinsey at management level. At Sonae Sierra, she is responsible for marketing all the Company s European operating shopping centres and development projects. She is a member of the Sustainability Steering Committee. Academic achievements Degree in Economics, Católica Lisbon School of Business and Economics; MBA, Nova University of Lisbon; Visiting Professor on the joint UCP/UNL/MIT MBA programme. Cristina Santos Property Management, Portugal Cristina Santos joined Sonae Sierra in 1995, as Assistant Director of GaiaShopping, where she later became the centre s Director. She subsequently transferred to the Company s central Property Management division and is now the Managing Director of Sierra Management Portugal, with special responsibilities for property management and letting. Academic achievements Degree in Food Engineering, Católica Lisbon School of Business and Economics.

54 OUR PERFORMANCE IN SONAE SIERRA 2013 Economic, Environmental and Social Report < > BOARD MEMBERS AND EXECUTIVES (CONTINUED) Other Executives (continued) Alexandre Fernandes Asset Management, Portugal and Spain Alexandre Fernandes joined Sonae Sierra in 1997 as Development Manager of NorteShopping, later becoming the centre s General Manager. In 2000 he was appointed Asset Manager for Portugal and in 2002 he added Greece and Romania to his portfolio. Since 2008, Alexandre has overseen all Sonae Sierra s real estate investments in Portugal and Spain. Academic achievements Degree in Electronics Engineering, Minho University; MSc in Management, University of Porto; MBA, ISEE University of Porto; MSc in Management, University of Porto; AMP, IE Madrid. Alberto Bravo Property Management, Spain, Romania and Greece Alberto Bravo spent four years in charge of the property management activities of Spanish consultancy CCC before joining Sonae Sierra in Since then, he has held various positions within Sonae Sierra, ranging from regional operations manager for southern Spain to Head of Property Management for the whole of Spain, a responsibility he took up in In 2013 he added the Romanian market to his specific responsibilities. Academic achievements Degree in Law, UNED, Madrid; Studied General Management, London Business School. Carlos Alberto Correa CFO & IR Officer, Sonae Sierra Brasil Carlos Alberto Correa joined Sonae Sierra Brasil as Deputy CFO in 2007, having spent a number of years with some of Brazil s larger companies, where he acquired extensive experience in the financial field. In February 2009 he was appointed CFO of Sonae Sierra Brasil, with overall responsibility for the Company s financial area. In 2011 he also took responsibility over the investors' relations department. Academic achievements Degree in Accounting & MBA, Universidade Presbiteriana Mackenzie, São Paulo; AMP, Harvard Business School. Pedro Soveral Rodrigues Human Resources Pedro Soveral Rodrigues joined Sonae Sierra in 1998 as Deputy Manager of Centro Colombo. Since then he assumed different responsibilities at the company including the Expansion role in Iberia, the leadership of the Safety & Health area, as well as the responsibility of Property Management in Italy. In 2010 he was appointed as Head of Human Resources. He is a member of the Sustainability Steering Committee. Academic achievements Degree in Mechanical Engineering, IST, Lisbon; MBA, Nova University of Lisbon; PED, IMD, Lausanne. Waldir Chao Property Management and Leasing, Sonae Sierra Brasil Waldir Chao joined Sonae Sierra Brasil in 2011 after 17 years in the Brazilian retail and real estate business. He has wide ranging responsibilities for the management, marketing and leasing of Sonae Sierra Brasil's shopping centres, with a particular emphasis on the evolution of the day-to-day management aspects of each asset.aspects of each asset. Academic achievements Degree in Industrial and Management Engineering, U.S.P., São Paulo; MBA, California State University, San Diego. Jorge Morgadinho Conceptual Design & Architecture Jorge Morgadinho has been with Sonae Sierra since He started his activity as an architect for Centro Colombo. Following that he was appointed Deputy Development Manager for Centro Vasco da Gama. From 1999 to 2005 he was responsible for the development of three shopping centres in Spain. In 2006 he started his activity as Expansion Manager for New Markets. Since 2010 he returned to the architecture department as Head of the Conceptual Design & Architecture. Academic achievements Degree in Architecture at Faculdade de Arquitectura, Lisbon. MBA at IESE, Universidad de Navarra, Barcelona. Manuel Guerra Development and Engineering Services Manuel Guerra joined Sonae Sierra in 1989 as Development Manager. Following several roles in the Developments business with responsibility for a large number of Sonae Sierra s projects in Iberia, in 2011 he was appointed General Manager of Developments Iberia with responsibility for engineering services, and in 2012 he was promoted to General Manager for Developments and Engineering Services. Academic achievements Degree in Civil Engineering from Instituto Superior Tecnico, Technical University in Lisbon. Post graduate qualifications in Real Estate Management from IST and general management from Catholic University, Lisbon. Thanos Efthymiopoulos Finance and Back-Office, Greece and Romania and Development and Asset Management, Greece Thanos Efthymiopoulos joined Sonae Sierra in Greece as Head of Finance and Back Office in March Since July 2011 he assumed also the responsibilities for the Development and Asset management business and that of Country s representative for Greece and in October 2013 he took also the charge of the Finance and Back Office functions in Romania. Prior to joining Sierra, Thanos was the CIO of a real estate private equity firm, specialising in South- East Europe. Before this he was an Executive Director and the CFO of a leading real estate development group in Athens, Greece. His professional experience started in 1994 at Athens Office of Arthur Andersen. Academic achievements Thanos holds an MSc in International Economics Banking and Finance from the University of Wales, College of Cardiff and a BA in Economics from the National University of Athens. He is a member of the Royal Institution of Chartered Surveyors.

55 annex: global reporting initiative Introduction 54 General Standard Disclosures 55 Economic Aspects 68 Environmental Aspects 74 Labour Practices and Decent Work Aspects 105 Society Aspects 122 Product Responsibility Aspects 131 SONAE SIERRA 2013 Economic, Environmental and Social Report.54 < > uberlândia Shopping, Brazil parque d. pedro Shopping, Brazil ANNEX: global reporting initiative transparency about the sustainability of a company s activities is of interest to a diverse range of stakeholders. the global Reporting Initiative (gri) has collaborated with large networks of experts representing different stakeholder groups in order to develop a comprehensive framework for sustainability reporting that can be used by organisations of any size, sector or location. the gri s Sustainability Reporting guidelines are the world s most widely used sustainability reporting framework. Since 2004 we have published reports which comply with the GRI. In May 2013, the GRI released the fourth update of its Sustainability Reporting Guidelines, the G4. The G4 was developed to increase emphasis on the need for organisations to focus their reporting process and final report on those topics that are material to their business and key stakeholders. This report has been developed in accordance with the Core GRI G4 Guidelines. Where applicable, it also follows the GRI G3.1 Construction and Real Estate Sector Supplement (CRESS) guidance which was released in 2011 (the updated G4 Construction and Real Estate Sector Disclosure, published in February 2014, was not available at the time of writing). This chapter follows the structure of the GRI G4 Guidelines, and includes our responses to the Profile Disclosures, Disclosures on Management Approach and Performance Indicators, or references where these can be found in other sections of this report. As such, it replaces the need for a separate content index based on the recommended format outlined in the G4 Sustainability Reporting Guidelines Implementation Manual. We have reported against all material indicators for each Aspect identified in our materiality review, and any omissions are detailed in each section. All GRI General Standard and Specific Standard Disclosures have been externally assured by an independent auditor to ensure that data and information is accurate and complies with the applicable guidelines.

56 annex: global reporting initiative.55 SONAE SIERRA 2013 Economic, Environmental and Social Report < > general Standard disclosures Strategy and analysis g4.1 Statement from the most senior CEO s Statement, pages 3 to 4. decision-maker of the organisation. organisational profile g4.3 Name of the organisation. Our Company, page 8. g4.4 Primary brands, products and services. Our Company, page 8. g4.5 Location of the organisation s Our headquarters are located in Maia, Portugal. headquarters. g4.6 Number of countries where the Our Company, Where we operate, page 11. organisation operates, and names of countries where either the organisation has significant operations or that are specifically relevant to the sustainability topics covered in the report. g4.7 Nature of ownership and legal form. Governance, page 46. g4.8 Markets served (including geographic Our Company, Where we operate, page 11. breakdown, sectors served, and types of customers/beneficiaries). g4.9 Scale of the reporting organisation. Our Company, Where we operate, page 11. g4.10 Characteristics of the workforce. We consider our workforce to be the 1,144 employees that we directly employ, and the ten people who are employed by other companies but are supervised by Sonae Sierra. We also employed 20 independent contractors during the reporting period. The vast majority (98%) of our direct employees are employed on a full time basis. Nineteen are employed on part time contracts, and three are temporary employees. They are located across 11 countries with more than 76% based in our two largest markets, Portugal (35%) and Brazil (41%). Other significant locations include Spain (9%). During 2013, 198 employees left the company (a male/female turnover rate of 10% and 7.8% respectively), and we hired 219 new employees (a male/female new hire ratio of 10.9% and 8.2% respectively). For more information on our workforce see the tables below and G4-LA12 (page 119). Direct Employees Country Female Male Total Portugal Spain Italy Germany Greece Romania The Netherlands Turkey Morocco Algeria Brazil total ,144 Direct Employees Employment type Female Male Full Time Permanent Part Time 18 1 Temporary Part Time 3 total Direct Employees Employment contract Female Male Permanent Temporary total Supervised Workers Country Female Male Total Portugal 3 3 Spain 1 1 Italy 1 1 Germany Greece 1 1 total Independent Workers Country Female Male Total Portugal Spain 2 2 Italy 1 1 Germany 1 1 total

57 annex: global reporting initiative.56 SONAE SIERRA 2013 Economic, Environmental and Social Report < > general Standard disclosures (CONTINuED) organisational profile (continued) g4.11 Percentage of total employees Sonae Sierra does not have any collective bargaining agreements, so 0% of employees are covered by collective bargaining covered. agreements. g4.12 Describe the organisation s In 2013, we had contracts in place with suppliers totalling 1,181 million. Our suppliers can be supply chain. divided into two broad groups: service suppliers who provide maintenance, security, cleaning and waste management services in our shopping centres; and development suppliers who provide the goods and materials (such building materials, metals, stone and timber) that we use during the development of new shopping centres and refurbishments and expansions of existing centres. In many cases, development services are provided by contractors who in turn manage their own supply chain to source the goods and materials we use. We also procure a small amount of office supplies for use in our shopping centres and corporate offices, such as paper, envelopes, pens and folders. The appointment of suppliers is governed by our supplier procurement procedures. Our Responsible Procurement Policy, adopted in 2007, is integrated into our Service Suppliers Management Procedures. All contracts with critical suppliers must include safety, health and environmental clauses, and sub-contractors have the same level of requirements in this area as contractors. We promote high environmental standards and in 2013, 38% 14 of our suppliers had an environment management system certified to ISO The performance of critical development suppliers (contracts over 2.5 million) is assessed through questionnaires that collect information on their policies and practices regarding a range of CR issues including ethics, anti-corruption, human rights, environmental compliance, equal opportunities, safety and health and community investments. There is no policy that guarantees preference to locally-based suppliers. However, the nature of the work carried out by our service and development suppliers means that a large proportion may be located close to our shopping centres. In 2013, 98% of our procurement spend was with national suppliers (aggregated across all countries). g4.13 Significant changes during the The Year At a Glance, Key Achievements, page 5. reporting period regarding the organisation s size, structure, ownership, or its supply chain. g4.14 Report whether and how the The precautionary principle is addressed through our approach to Safety, Health and precautionary approach or principle Environmental (SHE) issues. We operate a Safety, Health and Environment Management is addressed by the organisation. System (SHEMS) certified in accordance with ISO and OHSAS standards at a corporate level and local SHEMS on all our shopping centre and development sites, which require us to identify SHE aspects and impacts associated with our activities (see pages 19 to 20 for further details, including the number of our local SHEMS which are certified). We apply our Environmental Due Diligence procedure on new projects and acquisitions and our Safety and Health Due Diligence procedure on acquisitions. Our Safety, Health and Environment Development Standards (SHEDS), also described on page 25, enable us to minimise SHE risks and enhance the eco-efficiency of our shopping centres in operation during the design phase. We also demonstrate a precautionary approach to climate change risks; see pages 69 to 70 for further details. 14 This includes all Sonae Sierra suppliers with a total transaction value above (317 suppliers in 2013). It is calculated as the total number of suppliers with ISO certification (47), divided by the total number of applicable suppliers who responded to this question (124).

58 annex: global reporting initiative.57 SONAE SIERRA 2013 Economic, Environmental and Social Report < > general Standard disclosures (CONTINuED) organisational profile (continued) g4.15 List of externally developed economic, global compact environmental and social charters, Sonae is a signatory of the Global Compact, a voluntary contract between the united Nations and principles, or other initiatives to which the worldwide business community. It is designed to encourage companies to embrace, support the organisation subscribes or which and enact, within their sphere of influence, a set of core values in the areas of human rights, labour it endorses. standards; the environment, and anti-corruption. As we are partially owned by Sonae, we must provide this shareholder with an outline of how we comply with these principles, so it can fully report to the united Nations. uli greenprint centre for building performance In 2009, Sonae Sierra became a Founding Member of the Greenprint Foundation, a global industry initiative supported by key players in the property sector. In 2013, Sonae Sierra participated in the Greenprint Performance Report Volume 4 (previously called Greenprint Carbon Index). We submitted energy consumption and Greenhouse Gas (GHG) emissions data from 45 shopping centres, which were analysed and compared to other Greenprint members portfolios. We are a member of the Advisory Board and sit on its Performance Committee. In 2013 we also joined its Valuation and Portfolio Management Committee and Sustainability Council. inrev Sustainability Working group INREV, the European Association for Investors in Non-listed Real Estate Vehicles, launched a Sustainability Working Group in 2009 to inform and educate members of fund-level sustainability issues. INREV s initial work focused on improving members access to information on sustainability issues such as regulation and industry benchmarks, understanding market practices in the industry and supporting other initiatives across INREV s committees such as reporting and due diligence. Sonae Sierra is a member of the Working Group and has contributed to the INREV Best Practice Recommendations (BPR) for Sustainability Reporting in 2012 and in 2013 was involved in the revision of the due diligence questionnaire. Sustainable Energy Europe campaign In 2008, Sonae Sierra was selected to be a partner of the Sustainable Energy Europe Campaign, due to the Company s strong commitment to sustainability and potential to contribute to the Campaign s objectives. The Sustainable Energy Europe Campaign is an initiative of the European Commission s Directorate-General for Energy and Transport, which aims to raise public awareness and promote sustainable energy production and use among individuals, organisations, private companies, public authorities, energy agencies, industry associations and NGOs across Europe. the 2 c challenge communiqué In 2011 Sonae Sierra signed The 2 C Challenge Communiqué that calls on governments to break the deadlock in the international negotiations and take action at a national level to tackle climate change. World business council for Sustainable development In previous years we have participated in the core group of the WBCSD s Energy Efficiency in Buildings (EBB) project and signed up to the WBCSD s Manifesto for Energy Efficiency in Buildings. World Safety declaration The World Safety Declaration is a charter which forms a global commitment to improve workplace safety. Sonae, one of our two shareholders, and became a signatory to this agreement in November 2005.

59 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.58 < > general Standard disclosures (CONTINuED) organisational profile (continued) g4.16 Memberships of associations (such as memberships in industry associations industry associations) and national or ALSHOP Associação Brasileira de Lojistas de Shopping (Brazilian Association of international advocacy organisations in Shopping Tenants)* which the organisation: holds a position Asociación Española de Centros Comerciales AECC (Spanish Council of Shopping Centres) on the governance body; participates Associação Portuguesa de Centros Comerciais APCC (Portuguese Council of Shopping in projects or committees; provides Centres)* substantive funding beyond routine Associação Portuguesa de Promotores e Investidores Imobiliários APII (Portuguese membership dues and/or views Property Investor and Developer Council)** membership as strategic. Associação Brasileira de Shopping Centers ABRASCE (Brazilian Council of Shopping Centres) Assoimmobiliare (Italian Real Estate Industry Association)* CSP Confederação de Serviços de Portugal (Confederation of Services of Portugal) CCILC Câmara de Comércio e Indústria Luso-Colombiana (Luso-Colombian Chamber of Commerce and Industry) Consiglio Nazionale dei Centri Commerciali Italia CNCC (Italian Council of Shopping Centres)* EIRE Expo Italia Real Estate** European Association for Investors in Non-Listed Estate Vehicles INREV** European Property Federation* Federimmobiliare (Italian Federation of Real Estate Associations)* German Council of Shopping Centres* Greek Council of Shopping Centres* International Council of Shopping Centres (ICSC)** IBEVAR Instituto Brasileiro de Executivos de Varejo (Brazilian Institute of Retail Executives) Romanian Council of Shopping Centres* urban Land Institute uli * Denotes organisations where Sonae Sierra has significant influence either as president, a trustee or a member of the Board or Council. ** Denotes organisations where Sonae Sierra is a member of a working group, taskforce or committee. identified material aspects and boundaries g4.17 List of all entities included in the Please see Note 3 in our Consolidated Report and Accounts 2013 for a full list of Group companies organisation s consolidated financial included in our financial statements. statements or equivalent documents and identification of any entity This report provides an account of our performance across all Sonae Sierra businesses including included in the organisation s Sierra Investments, Sierra Developments, Sierra Management and Sonae Sierra Brasil. consolidated financial statements The Safety, Health and Environment (SHE) information covers all our owned subsidiary holding or equivalent documents that are companies, regardless of our ownership stake in these. The financial information is reported not covered by the report. on the financial value derived directly by Sonae Sierra, which is proportionate to our ownership stake.

60 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.59 < > general Standard disclosures (CONTINuED) identified material aspects and boundaries (continued) g4.18 Explain the process for defining the With reference to the new guidance issued within the GRI s G4 Sustainability Reporting Guidelines, report content and Aspect Boundaries, in 2013 Sonae Sierra commissioned a new Materiality Review. This Review drew upon the findings and explain how the organisation has of Sonae Sierra s last comprehensive materiality assessment and the sustainability strategy implemented the Reporting Principles review, both performed in 2011, as well as the findings of the Company s latest stakeholder for Defining Report Content. surveys and activities of the Risk Management Working Group. The review incorporated elements of the materiality approach developed by the sustainability think-tank AccountAbility with modifications introduced by the Hauser Centre at Harvard university and the Initiative for Responsible Investment 15. The 2013 Materiality Review process was based upon the four-stage approach recommended by the GRI. This involved: Step 1: identification of topics that may reasonably be considered important for reflecting the organisation s impacts or influencing stakeholders and whether the impacts related to each relevant topic occur within the organisation or outside of the organisation, or both. To do this, all 46 aspects defined by the G4 were tested against five weighted criteria to assess their importance to Sonae Sierra and five weighted criteria to assess their importance to Sonae Sierra s stakeholders. Material used to assess the importance of each aspect to our Company included, for example, the revised sustainability strategy, risk assessments, legislation reviews and peer reviews. Materials used to assess the importance of each aspect to our stakeholders included employee, tenant, community and consumer surveys, and annual investor information requests. The overall importance of each issue was then calculated using an average score across each criterion. Step 2: prioritisation of aspects that reflect the organisation s significant economic, environmental and social impacts and the aspects that substantively influence the assessments and decisions of stakeholders. Based on the outcomes of step 1, we developed a Materiality Matrix (see figure below) to map each aspect in terms of its importance to Sonae Sierra and its importance to our stakeholders. This was based on the aspects which were ranked above a certain threshold and were deemed to be material. In keeping with the GRI s advice, the threshold for stakeholder importance was lower (2 or above) than the one for importance to Sonae Sierra (3 or above). materiality matrix showing material issues to Sonae Sierra 5 Importance to Sonae Sierra Indirect Economic impacts Health and Safety Products and Services Training and Education Supplier Assessment of Labour Practices Local Communities Customer Health and Safety Materials Biodiversity Water Energy Waste Emmissions 1 Diversity and Equal Opportunity Equal Remuneration for Men and Women Importance to stakeholders 15 From Transparency to Performance: Industry-Based Sustainability Reporting on Key Issues, Steve Lyndenberg, Jean Rogers, David Wood. (The Hauser Center for non-profit organisations at Harvard university and Initiative for Responsible Investment, 2010).

61 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.60 < > general Standard disclosures (CONTINuED) identified material aspects and boundaries (continued) Step 3: validation of material aspects prior to reporting to ensure that the report provides a reasonable and balanced presentation of an organisation s sustainability performance. We reviewed the aspects deemed to be material according to the Materiality Matrix, and decided to remove one aspect and introduce eleven additional aspects based on our business and sustainability performance. The one aspect removed was Supplier Assessment of Labour Practices, due to the fact that the vast majority of our suppliers provide services rather than manufactured goods, and are based in the core countries of operation (Western Europe and Brazil). Furthermore, we already address what we consider to be the most significant risk area in terms of supplier labour practices supplier safety through the operational procedures within our Safety, Health and Environment Management System (SHEMS). Supplier safety therefore falls within the scope and boundary of the material aspect Occupational Health and Safety (see page 105 for further details). The eleven additional aspects added were: Environmental Grievance Mechanisms; Labour Practice Grievance Mechanisms; Public Policy and Grievance Mechanisms for Impacts on Society (based on importance to key stakeholder groups), and Economic Performance; (Environmental) Compliance; Environment Overall; Anti-Competitive Behaviour; (Society) Compliance; Product and Service Labelling and (Product Responsibility) Compliance (all based on importance to Sonae Sierra). The specific rationale for deeming each of these aspects to be material is explained in the Disclosures on Management Approach for each aspect. Step 4: review of material aspects after the report has been published. This step is due to be carried out during the summer of 2014.

62 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.61 < > general Standard disclosures (CONTINuED) identified material aspects and boundaries (continued) g4.19 List all the material Aspects identified in the process for defining report content; and g4.20 For each material Aspect, report the Aspect Boundary within the organisation; and g4.21 For each material Aspect, report the Aspect Boundary outside the organisation. Material boundaries outside of our Company (business chain upstream Material boundaries within our Company (Sonae Sierra s business activities) & downstream) Property Asset Professional Material aspect Development Management Management Corporate Services Suppliers Tenants Economic Performance Indirect Economic Impacts Materials Energy Water Biodiversity Emissions Effluents and Waste Products and Services (Environment) Compliance (Environment) Overall Environmental Grievance Mechanisms Occupational Health and Safety Training and Education Diversity and Equal Opportunity Equal Remuneration for Men and Women Labour Practices Grievance Mechanisms Local Communities Public Policy Anti-Competitive Behaviour (Social) Compliance Grievance Mechanisms for Impacts on Society Customer Health and Safety Product and Service Labelling (Product Responsibility) Compliance The above table identifies the material boundaries for each aspect, broadly spilt between impacts under our direct operational control, those related to professional services and those related to the activities of our suppliers and tenants. In some cases, there is a mismatch between the material boundary and the scope of this report. For example, we do not include the sustainability impacts of our tenants, or shopping centres that we manage but do not own. For specific limitations regarding the boundary and level of coverage for each of the above aspects, see G4.23, the relevant Disclosure on Management Approach for each material aspect and Data Qualifying Notes for individual indicators. We have not provided a further analysis of material boundaries according to geography/region as the nature of our operations that fall within the scope of this report are located in regions which typically possess significant bodies of legislation covering each aspect, meaning there are no dramatic differences in the materiality of each aspect. Furthermore, we apply a consistent approach to managing these impacts across our owned shopping centres. Where differences do occur, for example in relation to the localised impacts of climate change and water availability, these are often felt at an individual asset level, and not at a broader country or regional level. In these instances, our management approach allows for a more tailored approach (see G4-EC2 and the DMA for water).

63 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.62 < > general Standard disclosures (CONTINuED) identified material aspects and boundaries (continued) g4.22 Report the effect of any Any re-statements of previously reported values are explained using data qualifying notes restatements of information beside each performance indicator. provided in previous reports, and the reasons for such restatements. g4.23 Report significant changes from unless otherwise stated, all performance data contained in this report: previous reporting periods in the Includes all of Sonae Sierra s direct operations in Europe and Brazil, but excludes our Scope and Aspect Boundaries. activities in Turkey, Azerbaijan, Morocco, Algeria, Colombia and China where we do not own shopping centres. The exception is data for tenant contracts under management and GLA under management, where we succeeded in obtaining information for Algeria and Turkey. Excludes our corporate offices in Colombia; Morocco; Algeria; The Netherlands and Luxembourg. Excludes shopping centres that are managed but not owned by Sonae Sierra (i.e. shopping centres that we do not hold any shares in). Shopping centres which are not owned by Sonae Sierra are not fully covered by our SHEMS, and are not included within the scope of SHE targets related with shopping centres. Excludes the sustainability impact of our tenants (all our owned shopping centres contain units/facilities which are leased to our tenants; the impacts of these facilities, which are the impact of our tenants, are not quantified in this report). Excludes development projects that are managed but not owned by Sonae Sierra. Excludes the sustainability impact of our joint venture partners on development projects and our construction contractors. However, we have included figures for the energy, water consumption and waste management of our significant development projects completed in These include the expansion and refurbishment of Shopping Plaza Sul in Brazil and AlgarveShopping and Centro Colombo in Portugal. The most significant changes in terms of scope in comparison with the previous reporting period are the sale of Parque Principado in Spain and Airone and Valecenter in Italy. Parque Principado was sold in October 2013, thus we have included its performance until that date for all indicators. For mainly environmental indicators (and related indicators that use the same basis, such as water efficiency and total water withdrawal) that are linked to our long-term objectives we have also estimated, when no real data was available, performance for October, November and December based on historical trends to provide full calendar year data. Airone and Valecenter were sold at the end of December 2013 and we have included full year data across all indicators. All three centres are not included in the total number of shopping centres owned, since as of 31 st December they do not belong to us. Airone and Valecenter are included on the GLA under management since we have kept their management until March Key changes from previous reporting periods in terms of material aspects are: Removal of human rights associated impacts related to professional services following confirmation over the proportion of total revenue generated from this business area. This confirms that in 2013, in terms of revenue, the activities associated with Sonae Sierra s professional services business are not material to the Company as a whole. Removal of aspects associated with supplier impacts covering the environment, society and labour practices, due to the nature of our Company s supply chain in relation to other material aspects. Stakeholder Engagement g4.24 Provide a list of stakeholder Investors and financiers groups engaged by the Employees organisation. Tenants Suppliers Shopping centre visitors Local communities & authorities The media

64 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.63 < > GENERAL STANDARD DISCLOSURES (CONTINUED) Stakeholder Engagement (continued) G4.25 Report the basis for identification The stakeholder groups with whom we engage have been identified based on our considerable and selection of stakeholders experience of developing and managing shopping centres. with whom to engage. G4.26 Report the organisation s approach In the tables below we have provided a summary of the stakeholder engagement techniques to stakeholder engagement, including we employed in 2013 and key feedback received. frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process; and G4.27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Our Investors How we engaged and informed General Shareholders Assembly Annual Reports and Quarterly Reports Regular meetings and presentations about our financial performance and risk management practices INREV Sustainability Working Group Annual participation in the Global Real Estate Sustainability Benchmark (GRESB) Our Employees How we engaged and informed Quarterly Horizons magazine Intranet Bi-Annual Corporate Climate Survey Regular Safety, Health and Environment (SHE) Meetings Regular SHE Meetings SHE Tips and Alerts; SHE training and SPO Involvement of employees in the definition of the SHE targets and the development of our Sustainability Strategy Specific surveys (e.g. on training needs, our sustainability strategy, SHE initiatives and reporting practices) World Day for Safety and Health at Work Key topics raised in 2013 The results of this year s GRESB survey highlighted our strong performance in policy & disclosure; management; performance monitoring and stakeholder engagement. Overall Sonae Sierra maintained its position as a Green Star. On the other hand, we were ranked lower than our peers with respect to Building Certification & Benchmarking. Key topics raised in 2013 According to feedback from our bi-annual Corporate Climate Survey, employees are satisfied with most aspects of their work at Sonae Sierra, in particular the Company s mission and values; impact on society, work conditions and trust. A record number of employees (84%) said they felt well informed about our sustainability strategy and that they understand their role in making it come true. However, the survey highlighted work life balance and compensation as aspects which employees have concerns about, particularly in Portugal and Spain. We also invited our employees to participate in a quiz to test their understanding of our sustainability strategy. 74% of employees who took part in the quiz thought that the strategy will deliver significant benefits to Sonae Sierra. How we responded Up until 2012, we were using international certification standards such as BREEAM and LEED to inform the best practice guidelines within our Safety, Health and Environment Development Standards, but did not pursue certification against these schemes per se. However, we recognise that delivering buildings that are certified to internationally recognised standards is increasingly expected from our stakeholders. For this reason, all our new developments are now targeting BREEAM Good, LEED Silver or DGNB Bronze as a minimum. How we responded We have made considerable efforts to improve our employees work life balance, such as introducing flexible work arrangements for those whose job function enables them to take up these options. Due to the nature of our industry, it isn t possible for all of our employees to access flexible work arrangements and longer work hours are sometimes inevitable. We seek to offer our employees a range of other benefits to compensate for this. We are pleased to observe how employees assessment of their work conditions has improved following our office move in Lisbon and the refurbishment of our offices in Maia and Madrid, which have all resulted in a more pleasant work environment for staff in these locations.

65 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.64 < > general Standard disclosures (CONTINuED) Stakeholder Engagement (continued) our tenants how we engaged and informed SierraCentres network and newsletter Tenant Satisfaction Surveys Top Tenant Survey Management meetings Safety, Health and Environment (SHE) Open Committees SHE training, SHE Preventive Observations (SPO) and emergency practice drills Energy reduction programme with tenants that consume the most energy Personæ Tenant Award and Planet Sierra Tenant Award to acknowledge tenants with the best safety and health and environmental practices Key topics raised in 2013 According to our 2013 Tenant Survey, 100% of our shopping centres achieved a tenant satisfaction rating of 4 or above on a scale of 1 to 6. In general, factors such as cleanliness, ambience, signage and car parking were evaluated favourably across our shopping centres. Factors such as temperature and WCs showed room for improvement in some centres. Feedback received from our Top Tenant Survey revealed that the most important sustainability issues for tenants are those that can lead to a reduction in operating costs (such as energy, water and waste management) and improvements in safety and health, namely the prevention of workplace accidents. how we responded We continue to target reductions in service charges through our focus on Safe People and Eco-efficiency, which aims to deliver continuous improvements in energy and water consumption and waste management (among other issues). For example, we worked with some tenants to provide energy audits and discuss ways to reduce their energy consumption. In 2013 we also conducted a viability study to install a polluter pays scheme with the aim of reducing waste disposal costs for tenants with effective waste reduction strategies. In recent years we have also experimented new store formats that aim to support tenants and local businesses. For example, Flash Stores give new and existing tenants an opportunity to try new ideas by offering low-rent six month contracts for empty retail units. Coop Stores support small businesses by allowing them to pool resources and share operating costs. For more information, see page 34. our Suppliers how we engaged and informed CR Questionnaire for critical, repeat development suppliers Service Suppliers Evaluation Procedure Regular SHE meetings SHE training, SPO and Safe Practice Index Key topics raised in 2013 In 2013 we held regular SHE meetings with our security, maintenance, cleaning and waste suppliers, to discuss the most common incidents experienced by these service providers. These meetings highlighted the importance of basic housekeeping procedures that help to prevent incidents such as electrical fires and injuries from falling equipment. how we responded Since 2010 we have been working closely with our service suppliers as we strive to be a zero accident business. A key objective is aligning suppliers safety standards with our own. During this time we have provided more than 25,000 hours of training to almost 13,000 suppliers to ensure that our suppliers were up to date with our required safe behaviours. We have also agreed on a set of Simple Safety Rules which have been printed and placed in prominent places as a constant reminder. For more information: See our website.

66 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.65 < > general Standard disclosures (CONTINuED) Stakeholder Engagement (continued) Shopping centre visitors how we engaged and informed Visitor surveys (including sustainability surveys) Customer Contact Management System for visitors to present suggestions and complaints and SMS updates on services and events at local shopping centres Awareness-raising events with SHE themes, including the celebration of World Environment Day and World Day for S&H at Work Key topics raised in 2013 Respondents to our Visitor survey highlighted that the ideal shopping centre should combine excellent delivery in services, technology and entertainment. Half of visitors surveyed prefer to visit more sustainable shopping centres. Transparency, eco-efficiency and supporting local businesses and communities are topics visitors feel most strongly about. how we responded In Spain we launched a communications campaign to promote sustainable lifestyles among our shopping centre visitors. The campaign highlighted our environmental progress with the tag line Now it s your turn. Customers were directed to our Facebook page where they were encouraged to take a quiz regarding our environmental performance in exchange for vouchers to spend at our shopping centres. More than 12,000 customers completed the quiz with over 19,700 becoming new fans of Sonae Sierra, helping us to get our sustainable lifestyle message across to a greater number of our customers. For more information: See our website. local communities & authorities how we engaged and informed Community Advisory Panels (CAPs) Community surveys Community Day and SMS updates on services and events at local shopping centres School liaison and staff volunteering activities Engagement at the shopping centre level during the planning, development and operations phases Key topics raised in 2013 At CAP meetings community representatives are invited to raise ideas and concerns. For example, in 2013 the CAP at MaiaShopping asked us to support the local fire brigade s fundraising and educational activities following local wildfires. how we responded The management team at MaiaShopping worked in partnership with the fire brigade to put on an exhibition based around the central message: They help throughout the year, now it s time to help them. It featured a history of the fire brigade and provided an insight into the work they do. Visitors learnt about fire risks and were able to attend a first aid workshop, as well as donate money. For more information: See our website.

67 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.66 < > general Standard disclosures (CONTINuED) Stakeholder Engagement (continued) the media how we engaged and informed Conferences, presentations and interviews Publication of articles in press covering economic, social and environmental issues general feedback received and how we responded In 2013, we received 5,858 cases of press coverage covering the economic, environmental and social aspects of our performance. Of these 94% were positive or neutral. The advertising equivalent value (the net value of the editorial space occupied at current advertising rates and based on the difference between favourable and unfavourable coverage) generated from sustainability related stories was 4.6 million. Example in focus During the year, a significant proportion of media articles focused on our approach to safety and health. For example, in Brazil just under 200 news items mentioned the OHSAS certifications received at uberlândia Shopping, Boulevard Londrina Shopping, Franca Shopping, Passeio das Águas Shopping, Shopping Metrópole and Shopping Plaza Sul. Similar articles were published in Italy and Spain. Our environmental performance also generated interest, for example in Spain a number of stories focused on our energy saving initiatives such as the installation of LED lighting in shopping centre car parks. In addition to the specific feedback received from different stakeholder groups above, we also requested feedback from individual stakeholders in our 2012 Economic, Environmental and Social Report, through our report feedback form. We only received a small number of completed feedback forms with qualitative comments to help us improve our reporting. However, the comments we did receive that Sonae Sierra should place a stronger focus on the use of alternative energy and water re-use technologies have been taken into account in our reporting on the Resource Resilience long-term focus area (see page 18). The Sierra Ombudsman is available for all stakeholders to present their complaints with the guarantee that these will be responded to. In 2013, the Sierra Ombudsman received 515 complaints from employees, tenants and visitors. The majority of complaints focused around tenant sales, rents, the location of kiosks, the quality and efficiency of services such as cleaning and security, lack of information in the mall, car parking, complications with gift vouchers and promotions and noise due to construction works. All complaints were responded to by or letter and, in some cases, a meeting was held. The necessary actions were taken in order to address the situation and prevent their reoccurrence. There were no reported incidences of discrimination, and no grievances related to human rights impacts were filed, addressed or resolved during the year.

68 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.67 < > general Standard disclosures (CONTINuED) report profile g4.28 Reporting period (e.g., fiscal or The information in this report relates to the calendar year ending on 31 December calendar year) for information provided. g4.29 Date of the most recent previous This report succeeds our 2012 In Review: Economic, Environmental and Social Performance report (if any). Report and our 2012 Economic, Environmental and Social Report, both published in April g4.30 Reporting cycle (annual, biennial, etc.). We report on a calendar year cycle. g4.31 Contact point for questions regarding Nuno Rafael Alves the report or its contents. Corporate Responsibility Reporting Coordinator cr@sonaesierra.com g4.32 Report the in accordance option the organisation has chosen; report the GRI Content Index for the chosen option, and report the reference to the External Assurance Report, if the report has been externally assured; and g4.33 Report the organisation s policy and current practice with regard to seeking external assurance for the report; report the relationship between the organization and the assurance providers and report whether the highest governance body or senior executives are involved in seeking assurance for the organisation s sustainability report. This report has been developed in accordance with the Core G4 GRI Reporting Guidelines. This GRI Annex is designed to act as our full GRI G4 disclosure, and therefore replaces the need for a separate content index that follows the recommended format in the G4 Sustainability Reporting Guidelines Implementation Manual (see page 54). The report (including all GRI General Standard and Specific Standard Disclosures) has been externally assured by an independent auditor to ensure that data and information is accurate and complies with GRI G4 guidelines, including the G3.1 Construction and Real Estate Sector Supplement(the updated G4 Construction and Real Estate Sector Disclosure was published at the time of writing). The independent auditor s review can be found on pages 140 to 141. governance g4.34 Report the governance structure Governance, page 46 and Governance, Safety, Health and Environment Management of the organisation, including System, page 47. committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Ethics and integrity g4.56 Describe the organization s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics. Our Code of Conduct includes a set of ethical principles which apply to everything we do and outline our commitment to success whilst operating with integrity, openness and honesty. Regular training on ethics, including the Code, is mandatory for all our employees, during which they are required to sign and return the Sonae Sierra Code of Conduct Acknowledgement, confirming that they have received the Code of Conduct and agree to comply with its provisions. The Code is also included in the Welcome Kit that is sent to all new employees as part of their induction. For more, see Our Company, page 8 Governance, page 46, Training and Education page 113 and Anti-Competitive Behaviour and Compliance page 128. Click here to download Sonae Sierra s Code of Conduct in full, including a description of our Ethical Principles.

69 annex: global reporting initiative.68 SONAE SIERRA 2013 Economic, Environmental and Social Report < > Economic aspects centro colombo, Portugal Shopping metrópole, Brazil ASPECT: Economic performance disclosures on management approach a) report the impacts that make this aspect material The ability of an organisation to deliver financial value for its shareholders is fundamental for a company such as Sonae Sierra and links closely to the value driven approach embedded in our revised Sustainability Strategy. Our business has the following positive impacts in relation to this Aspect: Creation of financial value for suppliers and the local economy through development activity. Generating tenant sales through our property management activity. Increasing Net Asset Value and delivering returns from the sales of assets for investors in our Funds. Generating profit for our Company and our investors through all our activities. One indirect impact which could be viewed as negative is that our business has the potential to contribute to household debt by promoting consumerism. The key indicator for Sonae Sierra in this aspect covers direct economic value generated and distributed. Also material for Sonae Sierra given its geographic scope are financial implications and other risks due to climate change. For more information on our approach to materiality, including the results of our materiality assessments, see our response to Identified Material Aspects and Boundaries on pages 61 to 62. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Our policies and practices in relation to economic performance aspects are explained in Our business model and strategy on page 14, and Risk management, page 19. Goals and Targets Our business model and strategy, page 14. Responsibilities Governance, page 46 and Board Members, Executive Directors and Other Executives, pages 50 to 53. Resources and Specific Actions Our performance, pages 21 to 53.

70 annex: global reporting initiative.69 SONAE SIERRA 2013 Economic, Environmental and Social Report < > Economic aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring Sonae Sierra adopted the International Accounting Standards (IAS) in its Consolidated Accounts in 2001, becoming the first real estate company in Iberia to adopt IAS. We issue financial reports on a quarterly basis, which are made publicly available on our website. Results and Adjustments Our performance, pages 25 to 35 and Consolidated Accounts, pages 36 to 43. GRI Performance Indicators G4-EC1, G4-EC2 and G4-EC4 presented on pages 69 to 70. performance indicators Indicator g4-ec1 Direct economic value generated and distributed. ( millions) direct economic value generated Revenues and sales of assets Economic value distributed Operating Costs 71.3 Employee wages and benefits 58.6 Payment to capital providers 43.5 Community Investment 0.02 Payments to Government 53.5 Economic value retained -3 data Qualifying note: This indicator covers all Company activities. Payments to Government include 5.3 million in taxes paid to government but recharged to tenants (e.g. property tax). g4-ec2 Financial implications and other risks and opportunities for the organisation s activities due to climate change. The impacts of climate change in the form of extreme weather events flooding, heat waves, weathering, subsidence etc. could cause physical and local depreciation to assets, and those with unreliable energy supplies could also depreciate faster than others. On the other hand, adapting existing buildings and developing and acquiring new buildings which perform better in predicted climate change scenarios could help to maintain and enhance asset and portfolio value in the long term. In 2009, we commissioned a study to investigate the financial risks associated with climate change on a sample of our Portuguese assets, focusing on three components: energy (mainly electricity), water and insurance costs. This was done by identifying potential changes in energy use resulting from climate change under different scenarios and calculating the costs of these changes based on two main assumptions: firstly, that the price of electricity would be unchanged relative to what it was in 1990 and secondly, that the price will change as a result of climate-related policies. In order to estimate the impact on the profitability of operations at the selected assets, two approaches were taken. The first was an accounting approach, in which it was assumed that the cost structure would remain unaltered and reductions in profitability were calculated based on existing publicly available financial data for each shopping centre. The second involved estimating the relationship between profitability and electricity prices using an econometric approach. The econometric approach allows for the adjustment of operations in the centres to changing prices of inputs such as electricity and accounts for other indirect effects on profits such as increased visitors during periods of higher temperatures. The results of this study revealed that: The increased demand for energy and the anticipated increase in the price of energy is expected to reduce profitability by a maximum of between 2% and 5% in 2030 and between 3% and 6% in 2050, with variations between different shopping centres. In the case of water it was not possible to estimate the potential increase in demand due to climate change but the impact of increases in water costs was examined, with the conclusion that these could reduce profitability by between 0.15% and 2%. The likely increase in insurance costs was estimated at 21%. This could affect profitability between 0.1% and 0.7%.

71 annex: global reporting initiative.70 SONAE SIERRA 2013 Economic, Environmental and Social Report < > Economic aspects (CONTINuED) performance indicators (continued) Indicator g4-ec2 Financial implications and other risks and opportunities for the organisation s activities due to climate change. (continued) In Portugal, AlgarveShopping and NorteShopping were selected for a more detailed asset-level study. The results of the study revealed that: Increased demand for energy due to higher temperatures combined with projected price increases are likely to impact on operational shopping centres profitability in the long term: for example, at NorteShopping, an estimated reduction of profits between 2% and 5.7% could occur in Water costs are also expected to rise, but estimates vary significantly and the impact on profitability would be less significant; for example, between 0.05% and 0.14% at NorteShopping and slightly more at AlgarveShopping due to higher water costs in this region. Insurance costs are likely to increase by around 21% due to the increased frequency of extreme weather events and other risks associated with climate change. The impact on profitability is likely to be around 0.1% at NorteShopping and 0.7% at AlgarveShopping. In 2013, we commissioned a high-level review building on the 2009 study to explore the business case for climate change adaptation. It reviewed the following key business drivers as a consequence of climate change: physical damage to property assets; evidence of climate change risks affecting operational and asset value based on Sonae Sierra management, acquisition and disposal activities; evidence of climate change risks affecting insurance premiums and policy developments since The findings highlighted that the strongest driver related to climate change adaptation relates to the possible transfer of risks usually absorbed by the public sector to the insurance industry, or directly to the private sector. Other drivers include physical damage to Sonae Sierra assets from extreme weather related events. Conversely, there was no evidence that climate change risks have had an impact on disposal activities for Sonae Sierra, but there is increasing awareness amongst valuers. At present there is a limited business case for adaptation measures based on legislative and policy drivers as there are no plans for introducing legally binding directives requiring property companies to adapt to climate change, and it is unclear how the costs of planning for climate change adaptation at a national level will be absorbed. At an operational level, insurance premiums for Sonae Sierra assets are unlikely to be immediately affected. However, if insurance products were to become unavailable in the future due to an increase in the severity and frequency of extreme weather events, this would impose a significant burden on the state. If this scenario were to happen, then the private sector may need to absorb the costs directly, and the risks to asset and operational value would substantially increase. The potential impact of physical damage to Sonae Sierra assets is illustrated by the recent damage to four Sonae Sierra shopping centres in Portugal and Brazil as a result of weather-related events. Although the overall impact was limited, in the most extreme case a shopping centre was forced to close for a short period and significant investment was required for fit-outs to repair several shops. In the context of this study, Sonae Sierra will pursue a number of soft adaptation measures which do not require large levels of capital investment. These include: Integrating climate change adaptation into the risk management process of our business activities through the Risk Management Working Group. Maintaining a register of relevant climate change adaptation policies in all countries of operation. updating our acquisition checklist to ensure key risks related to weather related events are evaluated. updating our building standards based on lessons learnt from weather damaged assets and to anticipate potential requirements for hard adaptation measures in the future. Monitoring of the impact of climate change risks on insurance premiums and asset values. Furthermore, we will continue to review the relative materiality of other environmental impact areas in terms of the risk and opportunity they might present to the business as part of our Risk Management Working Group. We use a standard risk management framework to evaluate environmental issues according to the likelihood/frequency of occurrence and the scale of impact should they arise. As well as energy and climate change, other potential risks and opportunities include water and waste (see pages 19 to 20). The issues identified are addressed through the Resource Resilience and Safe People and Eco-Efficiency focus areas which form part of our Sustainability Strategy. g4-ec4 Financial assistance received from government 16. In 2013, Sonae Sierra did not receive any financial assistance from the government. 16 Whilst this indicator was deemed to not be material to Sonae Sierra, we have maintained it in our reporting for the sake of transparency.

72 ANNEX: GLOBAL REPORTING INITIATIVE.71 SONAE SIERRA 2013 Economic, Environmental and Social Report < > ECONOMIC ASPECTS (CONTINUED) ASPECT: INDIRECT ECONOMIC IMPACTS Disclosures on Management Approach a) Report the impacts that make this Aspect material and describe work undertaken to understand indirect economic impacts at national, regional or local level This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62. As a part of our Sustainability Strategy Review performed in 2011/2012, we analysed the impacts of our business activities according to the Five Capitals Model 17, which enabled us to identify several indirect impacts that our Company has on financial, social and human capital stocks, including: Job creation and skills development. Impacts on local businesses, including suppliers, from our activities. Impacts on our tenants businesses. It is difficult for us to measure the significance of these indirect economic impacts in the context of external benchmarks and stakeholder priorities, although feedback we have received from tenants and local community members has further highlighted to us the importance of these issues to some key stakeholder groups. b) Report how the organisation manages the material Aspect or its impacts and explain whether the organisation conducted a community needs assessment to determine the need for infrastructure and other services Policies and Commitments Through our focus on the long-term sustainability priorities Prosperous Retailers and Leveraging Knowledge we are committed to: Helping our tenants to strengthen their businesses. Encouraging small, local and sustainable businesses to thrive. Empowering people through knowledge and skills, focusing not only on our own workforce but also supporting tenants and local communities. Goals and Targets Our business model and strategy, page 14. Responsibilities and Resources Governance, page 46. During the development and operations phases of our centres we carry out feasibility studies to identify consumers needs in retail, services and leisure activities, in order to design and adapt shopping centres to match market needs and the existing retail offer. These studies consider factors such as demographics within the catchment area and socio-economic indicators, and constitute a form of community needs assessment for our business activity. Specific Actions Our performance, pages 25 to 35. Specifically, we are developing several projects with reference to Prosperous Retailers which are designed to create economic benefits for local people in the locations where we operate shopping centres. In 2013 these included the Coop Store project that supports small businesses by exploring the idea of cooperative business models to reduce the level of investment risk for new start-up businesses, products and brands. It is specifically targeted at artists, designers and other creative entrepreneurs. In Brazil, we introduced the Qualifica Programme in 2012 which aims to provide training to tenants on sales, customer service, visual marketing and leadership. This programme was ongoing in Furthermore, Shopping Metrópole in Brazil has a successful community education project in place offering free classes to adults who did not have the opportunity to graduate from high school and wish to do so. The funding for this project is provided by the shopping centre. 17 The Five Capitals Model was developed by UK-based sustainability NGO Forum for the Future. It identifies five different types of sustainable capital from where we derive the goods and services we need to improve the quality of our lives. Natural Capital; Human Capital; Social Capital; Manufactured Capital and Financial Capital. For more information, see

73 annex: global reporting initiative.72 SONAE SIERRA 2013 Economic, Environmental and Social Report < > Economic aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring We monitor our tenants sales on a continuous basis and work with tenants to improve their economic performance where necessary. We also monitor jobs created as a result of new completed development and expansion projects and report these figures on an annual basis. Results and Adjustments For tenants sales and for further information about our performance in relation to Prosperous Retailers see Our performance, pages 25 to 35. In 2013, approximately 3,735 jobs were created as a result of the inaugurations of Boulevard Londrina Shopping and Passeio das Águas Shopping in Brazil, and Hofgarten Solingen in Germany. These include jobs within Sonae Sierra itself and jobs created by our service suppliers and tenants who recruit local people to work in new stores.

74 annex: global reporting initiative.73 SONAE SIERRA 2013 Economic, Environmental and Social Report < > Economic aspects (CONTINuED) performance indicators Indicator g4-ec7 Development and impact of infrastructure investments and services supported. In 2013, there were no investments and services provided primarily for public benefit. g4-ec8 Significant indirect economic impacts, including the extent of impacts. The following diagram illustrates the most significant indirect economic impacts we have identified as being generated by our Company through each core business activity. + generates returns for investors in our funds + Stimulates investment in developing regions (e.g. brazil) g g g g INVESTMENT DEVELOPMENT MANAGEMENT + creates economic value for direct and indirect suppliers, most of which are locally based companies + can include the provision of infrastructure for public benefit (roads, green space, etc.) g g g g + generates sales for our tenants - may have negative impact on local businesses not present within the shopping centre g g + create jobs for the local community + create profit for Joint venture partners + increase skills base in development, construction & retail services + Support the development of new business, including small and locally owned business + increase awareness and adoption eco efficiency through sustainability initiatives We have not undertaken specific studies which would enable us to evaluate the significance of these impacts in the context of external benchmarks and stakeholder priorities, but we are able to point to some quantitative indirect economic impacts generated by our Company in 2013, namely: 5,158 million tenant sales at managed owned shopping centres. 32% of shop units in our European shopping centres and 24% of units in our Brazilian shopping centres are occupied by local businesses. 1,181 million spent on suppliers, of which 98% are national businesses. 3,735 new jobs created as a result of new shopping centre inaugurations.

75 ANNEX: GLOBAL REPORTING INITIATIVE.74 SONAE SIERRA 2013 Economic, Environmental and Social Report < > ENVIRONMENTAL ASPECTS Plaza Mayor, Spain Parque D. Pedro Shopping, Brazil ASPECT: OVERALL Disclosures on Management Approach a) Report the impacts that make this Aspect material The development and operation of our shopping centres as well as the delivery of our corporate activities is dependent upon the availability of a range of natural resources (including land, metals, stone, timber, water, renewable and non-renewable sources of energy) and systems (such as natural climate regulation and ecosystems services). Our activities in turn have adverse impacts on these resources through the production of greenhouse gas emissions, waste and wastewater, and, in some cases, through the urbanisation of previously undeveloped land. In 2013, Sonae Sierra invested more than 16.4 million in environmental initiatives, equivalent to 28% of Direct Net Profit. Environmental aspects are clearly important to Sonae Sierra and to the Company s stakeholders. This is demonstrated through the Materiality Review performed by Sonae Sierra in 2013, which highlighted aspects such as water, energy, waste, emissions and materials as among the top five most material to Sonae Sierra s business. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) Report how the organisation manages the material Aspect or its impacts Policies and Commitments Our Safety, Health and Environment Policy establishes our responsibility to conduct our activities so that risks towards people, assets and ecosystems are minimised, and benefits enhanced. Further references: Click here to read our Safety, Health and Environment Policy, which is available on our corporate website. Goals and Targets Our Business model and strategy, page 14.

76 annex: global reporting initiative.75 SONAE SIERRA 2013 Economic, Environmental and Social Report < > EnvironmEntal aspects (CONTINuED) disclosures on management approach Responsibilities and Resources ultimate responsibility for environmental aspects lies with Sonae Sierra s CEO and Executive Committee. The Sustainability Steering Committee constitutes the senior level of decision making and establishes the Safety, Health and Environment policy, lines of action and objectives and monitors progress in respect of these. The Sustainability Office actively supports the Sustainability Steering Committee and advises on SHE Policy and standards. Responsibility for the implementation of Safety, Health and Environment Development Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures is assigned to all leaders and managers in the line organisation, who are also required to demonstrate a strong visible management commitment. Finally, our organisation as a whole is supported by the SHE network, which provides advice on SHE management and technical issues. An online training video introducing our approach and policy regarding safety, health and environment is available to all employees. Within the framework of our SHEMS, we operate a Competence, Training and Awareness Procedure. In accordance with this procedure, the Sustainability Office and Human Resources (HR) Department use a competence matrix to define the skills and knowledge required for each aspect of the SHEMS to be effectively implemented by Sonae Sierra s employees. Each year, our HR Department identifies SHE training and awareness needs with reference to the staff assessment process, with a particular focus on those employees whose job role impacts on SHE issues, or who have responsibilities for SHE management. General training needs are also identified by the Sustainability Office with support from the Country SHE Coordinator. All training needs are recorded in the Training and Awareness Plan and communicated to all employees involved and their line managers. Site Training and Awareness Plans are also developed based on the Corporate Plan, and cover initial and continuous training and awareness for personnel such as new employees, service suppliers workers and tenants. An evaluation process is performed based on each training session, allowing us to monitor the effectiveness of training delivered. Specific Actions For specific actions in relation to environmental aspects, see Our performance, pages 25 to 35 and the GRI Disclosures on Management Approach in relation to other material environmental aspects on pages 79 to 104 below. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring For an introduction to our SHEMS, see Governance, Safety, Health and Environment Management System, pages 47 to 48. Our SHEMS includes a Report, Performance Measurement and Monitoring procedure to monitor, evaluate and report SHE performance on a regular basis. A series of tools and applications exist to assist the monitoring and reporting tasks, such as the SHE Portal and the CR Portal. Performance results are evaluated on a timely basis by the Sustainability Steering Committee, Executive Committee and Board of Directors. We have established an Incident Report and Investigation procedure to report, investigate, communicate and act to prevent environmental incidents. Its main purpose is to implement corrective and preventive measures that are effective in avoiding similar situations that can lead to further accidents. Relevant importance is given to the communication of incidents; their investigation; the determination of their root cause; the definition of proper corrective and preventive measures, and also the communication of learning points throughout the organisation. We also have a Non-conformities, Preventive and Corrective Actions procedure in place to: Identify and record actual and potential non-conformities. Implement correction measures to minimise their consequences. Analyse non-conformity causes. Define corrective or preventive actions and review their effectiveness. We operate an annual Audit Programme to systematically audit our SHEMS at corporate and at site levels, covering all our shopping centres in operation and projects under development. We integrate specific investment initiatives into each shopping centre s Investment Plan to ensure that we improve the centre s environmental performance. These investment initiatives include environmental protection measures at our existing shopping centres, corporate offices and development projects, in particular investments in environmental management and waste disposal, emissions treatment, and remediation costs. See indicator G4-EN31 for full details of these expenditures.

77 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.76 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) Results and Adjustments For results in relation to environmental aspects, see Our performance, pages 25 to 35 and the GRI Disclosures on Management Approach in relation to other material Environmental Aspects on pages 79 to 104 below. Summary of environmental costs and associated measurable benefits, by environmental category (2013) In 2008 Sonae Sierra developed a tool to account for environmental expenditures and benefits, both physical and economic, from the implementation of the company s SHEMS. Sonae Sierra s Environmental Accounting aims to: Identify expenditures of environmental conservation activities; Identify benefits gained from such activities; Provide means of quantitative measurement: physical and monetary; Support the communication of results. Environmental accounting property management 2013 Capital Current Benefits of Benefits Environmental Expenditure Costs Significant Actions Benefits of Significant of the Benefits Domain ( ) ( ) of Previous Periods Actions of the Period Period Indicators Air 29,191 1, Reduction of CO 2 Emissions (tonnes) 6.42 Reduction of NOx Emissions (tonnes) 0.09 Reduction of SOx Emissions (tonnes) 0.24 Reduction of PM Emissions (tonnes) Health and well being 162, ,101 Compliance with indoor air quality and water quality thresholds (legal and company standards) Energy 731,215 22, , , ,125, Economic Benefit ( ) 4,029, ,462, ,148, Reduction of electricity consumption (kwh) 27, Reduction of natural gas consumption (GJ) Water 65,256 35,737 58, , , Economic Benefit ( ) 36, , , Reduction of water consumption (m 3 ) Ecosystem Emergencies Noise Compliance with legal noise emission limits Wastewater 2, , , Economic Benefit ( ) 52, Reduction of wastewater discharged (m 3 ) Compliance with wastewater quality thresholds (legal and company standards) Waste 96, , , Economic Benefit ( ) , Increase of waste sent to recycling (tonnes) 1, Reduction of waste sent to final disposal (tonnes) Environmental 2,764 1,953,740 10, Economic Benefit ( ) management activities Social activities 3,270 total Economic ( ) 1,060,133 4,316, , ,092 7,860,762 Economic benefit ( )

78 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.77 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) Results and Adjustments (continued) data Qualifying note: The company s Environmental Accounting (EA) model details the current costs, capital expenditure, and economic and environmental benefits resulting from the implementation of company s Safety, Health and Environment Management System. The model allows us to break down expenditure according to baseline expenditure (e.g. what is legally mandated), and extra-baseline expenditures (e.g. legionella monitoring in countries where no legal requirements exist). In this way we can calculate the economic effort required to go beyond minimum legal requirements. The EA is structured by environmental domain and specific activities, and the presented figures include all shopping centres owned by Sonae Sierra in operation for the current reporting year, except Parque Principado. Benefits of the Period also excludes Le Terrazze and uberlândia Shopping as this is based on both 2013 and 2012 data and these shopping centres were not operational for the whole of Capital expenditure and current costs are calculated from the company s financial controlling statements, classifying them by assigning one or several environmental activities along with their related percentages and legally non mandatory fractions. Current costs include the human resource effort and corporate environmental expenditure. Benefits can be physical or economic and are calculated as differences of performance between 2013 and They are based on validated data also presented throughout this report. Economic benefits can be revenues (monetary inflows from environmental conservation activities, for example from waste recycling) or savings (avoided consumption, pollutant disposal or costs compared to the previous year). Significant actions are capital expenditure items corresponding to a cost higher than 3,500 for which environmental criteria were considered (efficiency of resource use) and have an associated quantifiable physical and/or economic saving (when compared with basic technology or the situation before investment). These actions produce effects throughout the asset/equipment s operating period. The effects of actions from previous years and those for this period are shown in the table. The implementation date of the Significant Actions of 2013 was on average 31 st October, meaning that the benefits (physical and economic) of Significant Actions of the period for a full year are six times larger than the shown figures. The Benefits of Significant Actions of Previous Periods are likely to be underestimated since data only started to be regularly reported in 2010 and data reported prior to 2011 was not exhaustively checked or validated. Nevertheless, over the years the contribution of unreported Significant Actions from the previous years will tend to decrease. Because the EA excludes legally mandatory expenditure, the presented figures regarding capital expenditure and current costs differs from the table detailing expenditure in G4-EN31. Benefits can eventually include items resulting from the compliance with legally mandated requirements (e.g. implemented actions from building energy certifications may impact the benefit Reduction of electricity consumption ). On the other hand, since benefits are calculated from differences in a centres performance over two years, some current costs associated with benefits may be excluded ( Benefit of the Period from previous years). Revenues resulting from the sale of energy (electricity, hot and chilled water) regard to NorteShopping in Portugal, the only shopping centre with cogeneration. The volume of wastewater is estimated from the water consumption (80%). Benefits figures were normalized taking into account some shopping centres operational data between years, such as opening hours and number of visits. Therefore, the presented values may vary significantly from GRI/CRESS indicators shown in this report. In 2013 we piloted our Environmental Accounting Model for Development for the first time at Passeio das Águas Shopping in Brazil. The model is still in development and at the time of writing we are only able to present the results for four of our SHEDS, but we aim to more accurately capture and report against the full range of costs and benefits as we refine the model. In additional to the financial savings detailed in the table below, potential physical benefits identified from implementing the SHEDS included a reduction of 511 tonnes of CO 2 emissions and energy savings of million kwh. Furthermore, the construction work s EMS diverted 12,647 tonnes of waste from landfill. passeio das Águas Shopping Summary of environmental costs and associated economic benefits( ) Minimum costs required to meet market/legal Project Total costs ( ) requirements ( ) Costs SHEDS Total environmental capital expenditure 108, ,389 Construction works EMS Total environmental capital expenditure 133,596 90,817 EMS (other activities) Total environmental capital expenditure 161,621 84,638 Total benefits ( ) Benefits Total potential savings for the management activity resulting from the 170,816 project s development options Total savings from the construction works of the project associated 157,719 to EMS implementation

79 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.78 < > EnvironmEntal aspects (CONTINuED) performance indicators Indicator g4-en31 Total environmental protection expenditures and investments by type. corporate offices Type Expenditure ( ) Prevention and environmental management costs 9,655 Waste disposal, emissions treatment, and remediation costs total 9,655 developments Type Expenditure ( ) Prevention and environmental management costs 2,287,496 Waste disposal, emissions treatment, and remediation costs 124,127 total 2,411,623 operations Type Expenditure ( ) Prevention and environmental management costs 6,774,213 Waste disposal, emissions treatment, and remediation costs 7,251,842 total 14,026,055 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year (excluding Parque Principado), all corporate offices (Lisbon, Maia, São Paulo, Milan, Madrid, Düsseldorf and Bucharest) and all projects under development during the reporting year. The environmental expenditure for shopping centres is based on data from the company s Environmental Accounting (EA) model which details the current costs and capital expenditure made in several environmental activities and is available for each shopping centre. The data from the EA was rearranged by matching each EA activity to a G4-EN31 category as defined by the GRI guidelines. Environmental investments for offices include costs related to internal audits and services for legislative updates. Environmental investments for projects under development cover the Centro Colombo refurbishment, Boulevard Londrina Shopping, Hofgarten Solingen and Passeio das Águas Shopping. Among others, it includes costs related to waste management activities, wastewater monitoring, noise measurements and internal audits. The final values related to Hofgarten Solingen and Passeio das Águas Shopping are not accurate, since there are still some invoices missing.

80 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.79 < > EnvironmEntal aspects (CONTINuED) ASPECT: materials disclosures on management approach a) report the impacts that make this aspect material Although the sourcing of materials used in shopping centre development and operations is controlled by our contractors, we are aware that our business activity does entail a significant impact in terms of the extraction of raw materials (including timber, stone and metals), principally through the use of semi-manufactured goods and parts which are derived from raw materials. Whilst the extraction of raw materials adversely impacts on the natural environment, the reuse of existing materials (for example from demolition waste) and the use of manufactured goods fabricated from recycled materials can help to promote a more sustainable, closed loop approach to waste management and materials use. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts Policies and Commitments We engage with our suppliers with the aim of encouraging them to adopt more responsible business practices. In 2007, we formally approved our Responsible Procurement Policy, which commits us to, among other things: Privileging the use of materials which are locally-sourced; have a recycled content; have a low-toxic content; have a long life and can be recycled or reused, and/or are sourced from companies which adhere to ethical and/or environmental standards. Goals and Targets Our business model and strategy, page 14. Responsibilities and Resources Responsibilities and resources for managing the materials aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. For Sonae Sierra, it is difficult to control the selection of raw materials used in shopping centre development projects as our development contractor s source materials (generally pre-manufactured goods) on our behalf. This compromises our ability to gauge a clear understanding of the scale of our impacts in terms of raw material consumption. Nonetheless, through our SHEDS and our Service Suppliers Management Procedures we encourage our suppliers to favour materials that are non-toxic, have a recycled content and/or are sourced from companies that adhere to ethical and environmental standards. The SHEDS prohibit the use of materials which are known to have negative impacts on the environment and on the health and well-being of building occupants and timber products derived from non-sustainable forestry. Specific Actions In 2012, a study was performed to quantify the most significant materials consumed during the construction of new projects. The defined methodology will be applied to the next construction project which is estimated to be completed in c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the materials aspect is covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Results and Adjustments For results in relation to materials aspects, see GRI Performance Indicators G4-EN1 and G4-EN2 on page 80.

81 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.80 < > EnvironmEntal aspects (CONTINuED) performance indicators Indicator g4-en1 Materials used by weight or volume. Having carried out research into the impacts of our activities in terms of materials use, we have considered that the volume of materials purchased directly by our business for use in our corporate and shopping centre offices is immaterial in comparison with the volume of materials used on our development projects. In 2013 we planned to carry out a pilot study to assess the weight, value or volume of materials used and the percentage of materials used that were recycled materials at ParkLake in Romania. However, the start of this development was delayed, meaning that we were not able to complete this study. We will therefore aim to report this information for the next construction project which is estimated to be completed in g4-en2 Percentage of materials used that are recycled input materials. Not reported in See response to EN1 above.

82 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.81 < > EnvironmEntal aspects (CONTINuED) ASPECT: EnErgy disclosures on management approach a) report the impacts that make this aspect material According to the International Energy Agency (IEA), the built environment is responsible for around 40% of the world s total primary energy consumption and 24% of carbon dioxide (CO 2 ) emissions. In 2013, our shopping centres consumed a total of 1.3 million GJ of energy and generated 37, tonnes of CO 2 e. As governments proceed to mitigate the impacts on global climate change and as pressure on nonrenewable energy sources grows, regulations on the energy consumption and GHG emissions of buildings are becoming more stringent. Consequently, high-energy consuming and carbon-emitting buildings are likely to become less attractive to investors and occupiers in the future. On the contrary, more eco-efficient, low-carbon assets and ones which generate their own energy on site from renewable sources are likely to sustain their value in the long-term. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts and describe whether the organisation is subject to any country, regional or industry regulations and policies for energy Policies and Commitments We are committed to increasing the energy efficiency of our activities both within the scope of our Safety, Health and Environment (SHE) Policy and procedures (see page 47 to 48 above) and our long-term priority of Resource Resilience. Goals and Targets Our business model and strategy, page 14. Specifically, we have a long-term objective to strive to increase the energy efficiency of our operations, aiming to attain a maximum average electricity consumption of 400kWh/m 2 (mall and toilet area) per year across Sonae Sierra owned shopping centres, by Responsibilities and Resources Responsibilities and resources for managing the energy aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Specific Actions Energy efficient designs, including energy performance targets and innovative engineering solutions, are included in our Safety, Health and Environment Development Standards (SHEDS). Within the SHEDS, we specify the use of energy efficient boilers, air conditioning units and other fit out equipment such as lighting and appliances. We also require Development Managers to explore possible renewable and low-carbon technologies during design, such as passive solar design or natural ventilation. We are especially committed to designing buildings that will achieve high energy efficiency ratings under the European union s Energy Performance of Buildings Directive. Our construction contractors, too, can be big energy users. During initial construction, major refurbishments, or expansions, we make sure contractors strictly adhere to our Safety, Health and Environment Management System, which includes guidelines for monitoring energy consumption and achieving greater energy efficiency. We give preference to the use of demolition materials in construction, as well as materials sourced within a 500km distance of the site in question. Alongside our efforts to manage our shopping centres energy use as efficiently as possible during the operations phase (see the Disclosure on Management Approach for the Environmental Aspect Overall on page 74 above), we investigate opportunities for on-site generation of renewable energy and procurement of green electricity through the grid. For details of specific projects in 2013 to increase energy efficiency and switch to the use of more renewable forms of energy, see Our performance, pages 25 to GHG Protocol scope 1 and 2 emissions (excluding tenants).

83 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.82 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) Country, regional and industry regulations and policies for energy and emissions Our organisation is subject to regional and national regulations and policies concerning energy and emissions. At the regional level, these include: The European union s Energy Performance of Buildings Directive: 2002/91/CE and the 2010 Recast of the same Directive, which mandates, among other things, that buildings undergoing major renovations must upgrade to meet minimum energy performance requirements; that Energy Performance Certificates (EPCs) must be shared with prospective buyers and tenants of a building and that from 2020 (or 2018 for public buildings) all new buildings should be nearly zero energy. European union Regulation (EC) No 1005 of September 16, 2009 (that starting from the 1 st of January 2010 replaces the Regulation (EC) 2037/2000) on the management of Ozone Depleting Substances for general protection of stratospheric ozone. This includes obligations for operators of refrigeration, air conditioning or heat pump equipment and fire protection systems. At the national level, these include: Building regulations in countries where we develop new shopping centres. For example, in Germany, all properties where a building permit was issued after the 1 st October 2009 were required to meet the revised 2009 Building Regulations which demanded a 30% increase in energy efficiency of HVAC and lighting systems and a 15% increase in thermal insulation compared to the 2007 Regulations. Energy efficiency requirements for operational buildings in countries where we own and manage shopping centres. For example, in Spain, from 2010 the use of heating and cooling in new and existing non-residential spaces was limited in accordance with a maximum temperature of 21 C in winter and a minimum temperature of 26 C in summer. At an industry level, we are subscribed to several voluntary commitments to reduce energy consumption and GHG emissions associated with our activities; these are reported under G4-16 on page 58 above. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the energy aspect is covered by our SHEMS. See Governance, Safety, Health and Environment Management System, pages 47 to 48 and Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Results and Adjustments In addition to indicators G4-EN3, G4-EN5, CRE-1, G4-EN6 and G4-EN7 below, we monitor the electricity efficiency (excluding tenants) of our owned portfolio which in 2013 decreased by 7% compared to 2012 (see Our Performance, page 31). Electricity efficiency in corporate offices (kwh/m 2 ) As well as our owned portfolio, we monitor the energy efficiency of our corporate offices which decreased by 26% compared to Electricity efficiency (kwh/m 2 ) data Qualifying note: This indicator includes all corporate offices with a SHEMS, except the Maia Office which is excluded from this indicator because Sonae Sierra shares the office with other Sonae companies; therefore no separate meter reading is available to record its consumption.

84 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.83 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) construction electricity indicator (kwh/ 000 construction cost) on completed projects We also monitor the electricity efficiency of our construction projects, although we have less direct control over the measures that can be implemented to improve energy efficiency on these sites. Our performance is consistent with construction projects in previous years; however electricity use at Passeio das Águas Shopping is underrepresented as the indicator only refers to electricity purchased whereas a large amount of electricity was supplied by on-site generators at this project. construction electricity indicator (KWh/ 000) Centro Colombo (Primark) Boulevard Londrina Shopping Passeio das Águas Shopping Hofgarten Solingen data Qualifying note: This indicator includes all Sonae Sierra development projects completed in the reporting period. The values reported for this indicator are indicative of the quantity of electricity consumed during construction on projects that were completed in This indicator is calculated for each project by dividing the total electricity consumed at the construction site by the total construction cost of the project. Electricity consumption is monitored and recorded on a monthly basis at each project, from the start to the completion of the development works. performance indicators Indicator g4-en3 Energy consumption within the organisation. Energy Type GJ operations Total fuel consumption from non-renewable sources (Natural gas and LPG consumption) 305,737 Total electricity consumption 941,936 Total heating consumption 17,996 Total cooling consumption 124,427 Total electricity sold (72,373) total 1,317,723 offices Total fuel consumption from non-renewable sources (Petrol and diesel for car fleet) 12,808 Total fuel consumption from renewable sources (Ethanol for car fleet) 849 Total electricity consumption 2,055 Total 15,712 total 1,333,435 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Fuel consumptions were considered for all Corporate Offices (Lisbon, Maia, São Paulo, Milan, Madrid, Düsseldorf and Bucharest Offices). The conversion factors used to convert fuel to Gigajoules are taken from the GRI CRESS Guidelines, except for Ethanol and Liquefied Petroleum Gas (LPG), which are not available in the Guidelines. Since ethanol is only consumed in Brazil we have used a specific conversion factor for that country. For LPG we have used the conversion factor available on the International Energy Agency (IEA) Oil information publication (2012 edition). The conversion factor used to convert kwh to GJ is , as defined by the GRI CRESS Guidelines. g4 En5 Energy intensity. Country kwh/(m 2 of mall and toilet area) Portugal 729 Spain 314 Italy 691 Germany 698 Greece 1,048 Romania 1,105 Brazil 1,048 global intensity 725 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period. It is calculated as the ratio between energy consumption (natural gas, liquefied petroleum gas (LPG), electricity, chilled and hot water consumptions) divided by the mall and toilet area. Energy consumed outside of the shopping centres is not considered and therefore, for NorteShopping in Portugal, natural gas consumption for the cogeneration system is not included (as most of the energy produced is electricity sold to the grid) but chilled and hot water produced by cogeneration and consumed in the shopping centre is included. For this indicator there is a mismatch between the numerator and the denominator since energy purchased on behalf of tenants is considered, however tenant s areas are not included in the total mall and toilet area.

85 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.84 < > EnvironmEntal aspects (CONTINuED) performance indicators (continued) Indicator cre-1 Building energy intensity. Country Building Energy Intensity, Shopping Centres (kwh/m 2 of mall and toilet area) Portugal 662 Spain 311 Italy 691 Germany 692 Greece 616 Romania 584 Brazil 495 global intensity 561 Building Energy Intensity, Corporate Offices Country (kwh/m 2 ) Portugal 53 Brazil 204 global intensity 102 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting year and two out of three corporate offices with a SHEMS (Lisbon, Maia and São Paulo). The Maia office in Portugal was excluded since electricity consumption isn t known due to the fact that it is in a shared floor/building, with no individual meters. For this indicator there is a slight mismatch between the numerator and the denominator since energy consumption in technical areas and chilled and hot water that is supplied to some tenants are being considered but those areas are not. g4 En6 Reduction of energy consumption. Reduction in energy consumption, 2012 energy 2013 energy Energy reduction Reduction of GHG shopping centres consumption (GJ) consumption (GJ) achieved GJ emission (tonnes CO 2 e) Portugal 360, ,028 16, Spain 90,579 92,735-2, Italy 56,163 54,278 1, Germany 54,589 54, Greece 22,147 16,502 5,645 1,850 Romania 14,894 13,683 1, Brazil 313, ,920 3, total 912, ,698 26,982 1,727 Reduction in energy consumption, 2012 energy 2013 energy Energy reduction Reduction of GHG corporate offices consumption (GJ) consumption (GJ) achieved GJ emission (tonnes CO 2 e) Total Portugal 1, Total Brazil 1,527 1, total 3,172 2,055 1, data Qualifying note: This indicator includes 45 out of 47 shopping centres owned by Sonae Sierra and in operation during the full reporting year and two out of three corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Since this is a like-for-like indicator, shopping centres contributing to this indicator are the same for 2012 and 2013, therefore uberlândia Shopping in Brazil and Le Terrazze, in Italy are excluded. The Maia Office is also excluded since electricity consumption isn t known due to the fact that it is in a shared floor/building, with no individual meters. This indicator is calculated as the difference between electricity consumption between reporting years as other types of energy consumption are more dependent on weather conditions. The reductions of GHG emissions were calculated considering the difference regarding electricity consumption between the previous and the reporting year, and the electricity emission factors (gco 2 e/kwh) of our electricity suppliers in each country (except for Brazil where we used the value provided by the Environment Ministry associated with the national grid). Since all shopping centres in Germany, Portugal and Spain (except for three shopping centres in Portugal and one in Spain) contracted green electricity (energy from renewable sources with a 0 gco 2 e/kwh emission factor) the GHG emissions reduction doesn t provide the dimension of the reductions achieved as a result of the initiatives implemented.

86 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.85 < > EnvironmEntal aspects (CONTINuED) performance indicators (continued) Indicator g4-en7 Reductions in energy requirements of products and services. Reduction in energy requirements, shopping centres 2012 (GJ) 2013 (GJ) Variation (%) Portugal % Spain % Italy % Germany % Greece 1,428 1,048-27% Romania 1,195 1,105-8% Brazil 1,035 1,047 1% global intensity % data Qualifying note: This indicator includes 45 out of 47 shopping centres owned by Sonae Sierra and in operation during the full reporting year. Since this is a like-for-like indicator, uberlândia Shopping (Brazil) and Le Terrazze (Italy) are excluded. The indicator is calculated as the variation in energy intensity between the reporting year and the previous year. It is therefore also presented as a percentage.

87 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.86 < > EnvironmEntal aspects (CONTINuED) ASPECT: WatEr disclosures on management approach a) report the impacts that make this aspect material As demand for fresh water becomes ever greater around the world due to population growth, urbanisation, increased economic activity and climate change, we need to ensure we have adequate supplies for all our shopping centres, particularly those in areas that are vulnerable to shortages, such as Portugal, Spain and Greece. By improving the water efficiency of our portfolio and integrating systems for rainwater harvesting and water reuse on our sites, we can reduce our exposure to water scarcity risks and minimise our water footprint, which prepares us for potential future legislation and avoids costs. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts Policies and Commitments We are committed to increasing the water efficiency of our activities within the scope of our Safety, Health and Environment (SHE) Policy and procedures (see page 47 above) and exploring ways to reuse water under our long-term priority of Resource Resilience. Goals and Targets Our Business model and strategy, page 14. Specifically, we have long-term objectives to: Attain a level of water consumption at or below 3 litres per visit (aggregated across all Sonae Sierra owned shopping centres), by At least 10% of total water consumed at Sonae Sierra owned shopping centres to be reused grey water or harvested rainwater, by Develop and implement a long-term strategy to ensure a secure water supply at our owned shopping centres, with a particular focus on locations that are vulnerable to water shortages, by Responsibilities and Resources Responsibilities and resources for managing the water aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Specific Actions We aim to ensure a secure water supply at all of our shopping centres, with a particular focus on locations that are vulnerable to water shortages. We use the World Business Council for Sustainable Development (WBCSD) Global Water Tool to identify the areas in which we are developing new centres that are at risk of water stress or scarcity. When these projects go forward, the Company s Safety, Health and Environment Development Standards (SHEDS) define that specific equipment (like water chillers) must be avoided in order to minimise our vulnerability to water shortages. We also ensure that water efficient design, including equipment specifications and water recycling engineering solutions, is maximised. Where feasible, we integrate rainwater harvesting and grey water recycling systems on new projects and refurbishments to reduce the need for freshwater or municipal water consumption. During the fit out process, we set requirements for water efficient sanitary equipment (such as sensor spray taps, waterless urinals and low flush toilets). Our water metering strategy allows us to optimise shopping centres water consumption by enabling us to identify unusually high usage patterns and to define new management measures for tighter control of water usage. For shopping centres exterior areas and when landscape projects are defined, we specify efficient irrigation systems and minimise the planting of species with high water demands. For details of specific projects in 2013 to increase water efficiency and increase the reuse of water on our sites, see Our performance, pages 25 to 35.

88 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.87 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the water aspect is covered by our SHEMS. See Governance, Safety, Health and Environment Management System, pages 47 to 48 and Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Results and Adjustments In addition to GRI indicators G4-EN8, G4-EN10 and CRE2 below, we monitor the water efficiency (excluding tenants) of our owned portfolio which in 2013 was 3.7 litres of water per visit (see Our Performance, page 31). construction water indicator (m 3 / 000 construction cost) on completed projects We also monitor the water efficiency of our construction projects, although we have less direct control over water efficiency improvements at these sites. Our performance is largely consistent with previous construction projects. Variations between projects are due to a number of factors, such as the stage of construction works, landscaping requirements and the number of, and size of, retail units. construction water indicator (m 3 / 000) Centro Colombo (Primark) Boulevard Londrina Shopping Passeio das Águas Shopping Hofgarten Solingen data Qualifying note: This indicator includes all Sonae Sierra development projects completed in the reporting period. The values reported for this indicator are indicative of the quantity of water consumed during construction on projects that were completed in This indicator is calculated for each project by dividing the total water consumed at the construction site by the total construction cost of the project. Water consumption is monitored and recorded on a monthly basis at each project, from the start to the completion of the development works. performance indicators Indicator g4-en8 Total water withdrawal by source. total water withdrawal by source (m 3 ) Water Source Excluding tenants Water reallocated to tenants Ground water 290, ,179 Rainwater collected directly and stored by the reporting organization 14,013 Municipal water supplies 826, ,685 Other water sources 307 Mixture of water sources 38,715 32,858 Grey water 10,091 Treated waste water 38,914 total 1,218, ,722 total water withdrawal by country (including water reallocated to tenants) (m 3 ) Country Portugal 809,311 Spain 310,400 Italy 201,670 Germany 116,269 Greece Romania 12,007 Brazil 676,407 total 2,126,064 data Qualifying note: This indicator includes 45 out of 47 shopping centres owned by Sonae Sierra and in operation during the full reporting year. Pantheon Plaza, in Greece and uberlândia Shopping in Brazil, are excluded. Pantheon Plaza has unknown partial consumption and in uberlândia Shopping water reallocated to tenants is unknown.

89 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.88 < > ENVIRONMENTAL ASPECTS (CONTINUED) Performance Indicators (continued) Indicator G4-EN10 Percentage and total volume of water recycled and reused. Percentage and total volume of water recycled and reused (including water reallocated to tenants) Water Type Volume (m 3 ) Percentage Recycled or reused 63, % Not recycled or reused 2,062, % Total 2,126, % Data Qualifying Note: The shopping centres that are contributing to water recycled/reused (including water reallocated to tenants) are: ArrábidaShopping, CascaiShopping, Centro Colombo, CoimbraShopping, GaiaShopping and LoureShopping (Portugal); Dos Mares (Spain); Gli Orsi and Freccia Rosa (Italy); Alexa (Germany); and Parque D. Pedro Shopping (Brazil). Pantheon Plaza, in Greece and Uberlândia Shopping in Brazil, are excluded because total water withdrawal by source is unknown. This indicator includes 45 out of 47 shopping centres owned by Sonae Sierra and in operation during the full reporting year. This indicator is determined by the following formula: (Water reused/recycled (m 3 )/Total water withdrawal (m 3 )*100). Besides Pantheon Plaza and Uberlândia Shopping that harvest rainwater but are excluded from this indicator, Valecenter in Italy, 8ª Avenida and LeiriaShopping in Portugal have water reuse systems in place but are not able to measure the actual amount of water reused. Centro Colombo consumes grey water but also harvests rainwater not accounted for, since it is unable to measure this consumption individually as it is mixed with other water sources. Percentage and total volume of water recycled and reused (excluding water reallocated to tenants) Water Type Volume (m 3 ) Percentage Recycled or reused 63, % Not recycled or reused 1,231, % Total 1,295, % Data Qualifying Note: The shopping centres that are contributing to water recycled/reused (excluding water reallocated to tenants) are: ArrábidaShopping, CascaiShopping, Centro Colombo, CoimbraShopping, GaiaShopping and LoureShopping (Portugal); Dos Mares, (Spain); Gli Orsi and Freccia Rossa (Italy); Alexa (Germany); and Parque D. Pedro Shopping (Brazil). This indicator includes 46 out of 47 shopping centres owned by Sonae Sierra and in operation during the full reporting year. Pantheon Plaza, in Greece is excluded since this shopping centre has unknown partial consumptions. This indicator is determined by the following formula: (Water reused/recycled (m 3 )/Total water withdrawal (excluding tenants) (m 3 )*100). Besides Pantheon Plaza that harvests rainwater but is excluded from this indicator, Valecenter in Italy, Uberlândia Shopping in Brazil and 8ª Avenida and LeiriaShopping in Portugal have water reuse systems in place but are not able to measure the actual amount of water reused. Centro Colombo consumes grey water but also harvests rainwater that is not accounted for, since it is unable to measure this consumption individually as it is mixed with other water sources. CRE2 Building water intensity. Country Building water Intensity (litres/visit) Portugal 4.8 Spain 5.5 Italy 7.4 Germany 5.9 Greece 6.0 Romania 3.5 Brazil 9.3 Global intensity 6.1 Data Qualifying Note: This indicator includes 46 out of 47 shopping centres owned by Sonae Sierra and in operation during the reporting period. Uberlândia Shopping, in Brazil, was excluded since the water reallocated to tenants is not known. The formula used to calculate the indicator is: Building Water Intensity = (Total Water Consumption (excluding tenants) (m 3 ) + Total Water Consumption purchased on behalf of tenants) (m 3 )*1,000)/ Number of visits in the reporting year (Owned Portfolio).

90 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.89 < > ENVIRONMENTAL ASPECTS (CONTINUED) ASPECT: BIODIVERSITY Disclosures on Management Approach a) Report the impacts that make this Aspect material By far the most important reason for the unprecedented loss of biodiversity around the world in recent decades has been the destruction and alteration of habitats. Our main impact on biodiversity results from the development of land, particularly when projects are built on un-developed greenfield sites that are most likely to be rich in biodiversity or to perform valuable ecosystem services and functions. As well as causing damage to biodiversity and habitats, development on ecologically sensitive sites can increase the likelihood of opposition from local communities to our shopping centres, resulting in expensive delays to, or rejections of, planning applications. It also increases the risk of fines due to pollution or litigation through environmental liability laws. On the other hand, constructing on previously developed land and enhancing the ecological value of contaminated sites can bring benefits to the local economy, environment and community. This can increase support for new projects and enhance our reputation. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) Report how the organisation manages the material Aspect or its impacts and describe the organisation s strategy for achieving its policy on biodiversity management Policies and Commitments We are committed to preserving biodiversity within the scope of our Safety, Health and Environment (SHE) Policy and procedures (see page 47 above). Goals and Targets We have set long-term objectives to: Promote the use of previously developed land or brownfield land for new Sonae Sierra shopping centre projects and protect and enhance biodiversity wherever possible. Strive to protect and enhance biodiversity on both existing Sonae Sierra sites and new projects and add value to new projects by actively integrating biodiversity whenever possible, taking into account the regional context. Responsibilities and Resources Responsibilities and resources for managing the biodiversity aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Specific Actions Environmental Due Diligence, Environmental Impact Studies (EIS), Safety, Health and Environment Development Standards (SHEDS) and a site specific Safety, Health and Environment Management System (SHEMS) are applied to all our new developments. EIS are performed when required by legislation and, in all other cases, Preliminary Environmental Evaluations (PEE) are performed, according to Sonae Sierra s specifications. The EIS identifies potential environmental impacts of each project s design, construction and operation on the site s biodiversity and specifies mitigation measures. The SHEDS also establish requirements in relation to biodiversity, namely: Ecological features classified by the EIS must be preserved throughout construction and integrated in the landscape design, to the greatest extent possible. Native flora should be specified for use on all of the development s outdoor soft landscaping works. Exotic, allochthonous, invasive or non-indigenous plant or tree species are not specified for any of our new shopping centre s landscape projects. We have ongoing projects at LoureShopping in Portugal, and at Parque D. Pedro Shopping and Manauara Shopping in Brazil, to protect existing habitats and we also seek to raise awareness of biodiversity through marketing events and other initiatives among shopping centre staff and/or visitors.

91 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.90 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the biodiversity aspect is covered by our SHEMS. See Governance, Safety, Health and Environment Management System, pages 47 to 48 and Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. We monitor the implementation of the recommendations of EIS and PEEs performed to ensure that impacts on biodiversity are minimised as far as possible. In cases where we are building a shopping centre on a greenfield or previously undeveloped site, we ensure that all recommendations are implemented to compensate for any loss of biodiversity. At our operational shopping centres and our corporate offices, biodiversity impacts that may result from day-to-day activities such as waste disposal and water consumption are monitored through our SHEMS procedures. Results and Adjustments During 2013, 100% of new completed development projects occurred on previously developed land. This includes the three development projects (Boulevard Londrina Shopping, Passeio das Águas Shopping in Brazil and Hofgarten Solingen, in Germany) completed in 2013, but it does not include Centro Colombo because this project involved development inside the shopping centre s existing boundaries. See also GRI indicators G4-EN11, G4-EN12 and G4-EN13 below. performance indicators Indicator g4-en11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas & En12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. In 2013, 100% of new completed developments occurred on previously developed land. We did not own, lease or manage any sites in or adjacent to protected areas or areas of high biodiversity value outside protected areas and our activities had no significant impacts on biodiversity in protected areas or areas of high biodiversity value outside protected areas. g4-en13 Habitats protected or restored. No habitats were protected or restored during data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period, all Sonae Sierra projects under development during the reporting period, and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo) and in operation during the reporting period.

92 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.91 < > EnvironmEntal aspects (CONTINuED) ASPECT: EmiSSionS disclosures on management approach a) report the impacts that make this aspect material This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. See also Key non-controllable risks page 20, G4-EC2 page 70, and Energy on page 81. b) report how the organisation manages the material aspect or its impacts and explain whether the organisation is subject to any country, regional, or industry regulations and policies for emissions. provide examples of such regulations and policies Policies and Commitments We are committed to reducing greenhouse gas (GHG) emissions within the scope of our Safety, Health and Environment (SHE) Policy and procedures (see page 47 above). We also endorse several external policies/charters which commit us to reducing our impact on climate change; for further details, see page 58 above. Goals and Targets We have set a long-term objective to: Achieve an 80% reduction in GHG emissions per m 2 of GLA, by 2020, compared to the 2005 level (GHG Protocol scopes 1 and 2, plus business air travel). Implement climate change adaption measures identified in our 2013 climate change study, by Responsibilities and Resources Responsibilities and resources for managing the emissions aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 47 above. Specific Actions In 2006, we developed a Climate Change strategy to reduce our direct and indirect GHG emissions. This covers scopes 1, 2 and business air travel (part of scope 3) according to the guidelines of the GHG protocol developed by the World Resources Institute and the World Business Council for Sustainable Development. Our primary strategy to achieve this is through energy efficiency initiatives. We have not established a policy with regards to carbon-offsetting although we have compensated for carbon dioxide emissions in relation to some minor events. It is part of our strategy to advocate more sustainable practices at an industry level and in 2011, we signed The 2 C Challenge Communiqué that supports a robust, equitable and effective united Nations agreement on climate change. Aside from the energy used by the buildings themselves, we also seek to reduce the energy consumption and GHG emissions generated by associated activities, such as vehicle emissions produced by people visiting our shopping centres, or by staff travelling to and from work or on business trips. Many of our centres display public transport timetables, and have cycle storage facilities for tenants and visitors. We have Green Travel Plans in place at ten of our shopping centres, aimed at improving accessibility by public transport, bicycle and foot. Emissions are also produced by tenants occupying our centres, and we make efforts to advise and educate our tenants about saving energy and reducing GHG emissions from their activities. During the construction phase, besides the energy efficiency measures described on page 81, we put in place a number of steps to reduce emissions of diffuse particles such as dust. Guidelines cover the correct storage of pulverised material; regular spraying of site areas where the production, accumulation and re-suspension of dust may occur; regular cleaning of site areas to clear waste materials; procedures covering the transportation of construction waste; regular washing of truck and other machinery; loading and unloading procedures; the use of dust traps for demolition waste crushers; and actions to be taken in the event of a cargo spill. In 2013 we performed a materiality assessment to review our most material scope 3 GHG emissions based on the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by WRI and WBCSD. By ranking all scope 3 emissions generate by our business activities according to their significance and the level of influence we have over them, we can focus our reduction efforts where they are more relevant.

93 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.92 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) Specific Actions (continued) Currently, Sonae Sierra reports emissions from five of twelve applicable scope 3 categories 19 (from an overall total of fifteen categories): Category Emission Source Category 1: Purchased Goods and Services Staying in hotels Category 5: Waste Generated Waste generated Wastewater treatment Category 6: Business Travel Air travel Rail travel Category 7: Employee Commuting Employees commuting Category 9: Downstream Transportation and Distribution Visitor trips to shopping centres In 2014 we will add an additional category Category 13: Downstream Leased Assets by including GHG emissions from tenants electricity consumption at shopping centres owned by Sonae Sierra (GHG emissions from consumption of electricity purchased on behalf of tenants and GHG emissions from other energy consumption on behalf of tenants rather than electricity (e.g. natural gas) are currently reported under G4-EN16). We also start to report GHG emissions from at least five types of materials from new developments or expansions: concrete, brickwork, steel, glass and insulation under Category 1: Purchased Goods and Services. Further changes to the scope of our reporting will be made to Waste Generated and Wastewater Treatment (Category 5). For details of specific projects in 2013 to reduce our GHG emissions, see Our performance, pages 25 to 35 and GRI indicator G4-EN6, page 84. Country, regional and industry regulations and policies for energy and emissions See Aspect: Energy on page 81 above. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the emissions aspect is covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Results and Adjustments In addition to indicators G4-EN15, G4-EN16, G4-EN17, G4-EN18/CRE3, CRE4 and G4-EN19 below, we monitor the GHG emissions intensity (excluding tenants) of our owned portfolio and corporate offices, which in 2013 was tco 2 e/m 2 GLA (see Our Performance, page 31). number and percentage of visits made by different types of transport in the owned portfolio (millions of visits and %) The most significant contribution to our carbon footprint is from visitor travel to our shopping centres. In 2013, visitor travel accounted for 91% of our total carbon footprint and we saw an increase in the percentage of visits by private car. Whilst we neither control our visitors nor our employees travel to and from our shopping centres and offices, we can seek to influence it through, for example Green Travel plans (see above). number and percentage of visits made by private car and other modes of transport, to and from our shopping centres (millions of visits and %) Private car Other modes of transport (67%) / 116 (33%) 251 (64%) / 139 (36%) 256 (64%) / 141 (36%) 269 (65%) / 146 (35%) data Qualifying note: This includes all shopping centres owned by Sonae Sierra and in operation during the reporting period. Not all of our shopping centres performed Mall Tracking studies (which allow us to identify the number of visits made by private car) in In these cases, data from previous years studies has been used. Hofgarten Solingen, Passeio das Águas Shopping and Boulevard Londrina Shopping have been excluded from this indicator since they have not yet performed these studies since they opened in Excluding emissions from Category 2: Capital Goods Acquisition of Properties and Category 5: Waste Generated Wastewater Treatment.

94 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.93 < > EnvironmEntal aspects (CONTINuED) performance indicators Indicator g4-en15 Direct greenhouse gas (GHG) emissions (Scope 1). Including tenants GHG Emissions (tco 2 e) Scope 1 Natural Gas 16,956 Liquefied Petroleum Gas 435 Fleet fuels 943 Fugitive emissions 265 total 18,599 Excluding tenants GHG Emissions (tco 2 e) Scope 1 Natural Gas 14,971 Liquefied Petroleum Gas 2 Fleet fuels 943 Fugitive emissions 265 total 16,181 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period and all corporate offices (Lisbon, Maia, São Paulo, Milan, Madrid, Düsseldorf and Bucharest). Scope 1 emissions are direct emissions from sources that are owned or controlled by Sonae Sierra, e.g., the company car fleet, air-conditioning equipment, boilers and cogeneration plants. The emissions in tonnes of CO 2 equivalent (tco 2 e) have been calculated in accordance with the GHG protocol methodology and relate to the emissions from energy sources over which Sonae Sierra has financial control. g4-en16 Indirect greenhouse gas (GHG) emissions (Scope 2). Including tenants GHG Emissions (tco 2 e) Scope 2 Electricity 27,127 Chilled and Hot Water 3,791 total 30,918 Excluding tenants GHG Emissions (tco 2 e) Scope 2 Electricity 18,354 Chilled and Hot Water 2,975 total 21,329 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting year and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Scope 2 includes indirect emissions that result from Sonae Sierra s activities but are owned or controlled by another organisation, e.g. purchased electricity, heating and cooling. The emissions in tonnes of CO 2 equivalent (tco 2 e) have been calculated in accordance with the GHG protocol methodology and adapted, if data was available, to the specific national circumstances of the various countries in which Sonae Sierra operates. Emissions included in this indicator are from energy sources over which Sonae Sierra has financial control. Electricity consumption in Maia office, in Portugal is not known due to the fact that it is in a shared floor/building, with no individual energy meters and therefore an estimate was made. g4-en17 Other indirect greenhouse gas (GHG) emissions (Scope 3). GHG Emissions (tco 2 e) Scope 3 Business train travels 20 Business air travels 2,234 Employee commuting 1,089 Visitor trips to and from our shopping centres 598,707 Hotel Stays 115 Waste water treatment (co-workers + visitors) 8,597 Waste treatment 10,035 total 620,797 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year and all corporate offices (Lisbon, Maia, São Paulo, Milan, Madrid, Düsseldorf and Bucharest). For emissions regarding waste disposal the data only covers waste produced in corporate offices with a SHEMS (Lisbon, Maia and São Paulo).

95 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.94 < > EnvironmEntal aspects (CONTINuED) performance indicators (continued) Indicator g4-en17 Other indirect greenhouse gas (GHG) emissions (Scope 3). (continued) The emissions in tonnes of CO 2 equivalent (tco 2 e) have been calculated in accordance with the GHG protocol methodology, which was adapted, if data was available, to the specific national circumstances of the various countries in which Sonae Sierra operates in Europe and in Brazil. This indicator includes emissions from: Business air travel and train travel: For train travel the emissions factors used for 2013 come from Defra (National Rail and International Rail), which are lower than the emissions factors used in previous years. For Brazil and Romania there was no business train travel in For air travel, the source of emissions factors is the Defra Act on CO 2 calculator, and the Radiative Forcing Factor (RFI) is from Jardine (2005) Oxford ECI. Employee commuting: This was updated based on results from the Company s 2013 survey regarding commuting patterns. The emissions factors were updated and are according to values referenced in: 2013 Guidelines to Defra/DECC s GHG Conversion Factors for Company Reporting. Visitor trips to and from our shopping centres: This was updated for visitor patterns based on the same methodology applied in previous years and in accordance with 2013 visitor numbers. The emissions factors were updated and are according to values referenced in: 2013 Guidelines to Defra/DECC s GHG Conversion Factors for Company Reporting. Wastewater treatment: We applied the same methodology as in previous years updated in accordance with 2013 employee and visitor numbers. Waste Treatment: We considered emissions associated with all disposal methods (anaerobic digestion, composting, incineration (with and without energy recovery), landfill, recycling, elimination/treatment and reuse off-site). For anaerobic digestion and composting the emissions factors are based on values published in: Emissions Factor Guide Version 6.1 Bilan Carbone Agence de l Environnement et de la Maîtrise de l Energie. June For disposal by incineration without energy recovery and by landfill, emissions factors are based on values published in: Company certified by Carbon Disclosure Project:Ecometrica 2011 ( For the remaining disposal methods emissions factors were taken from Defra. Hotels: emissions were calculated based on emissions factors published by InterContinental Hotels Group/Best Foot Forward. g4-en18/cre3 Greenhouse gas emissions (GHG) intensity. greenhouse gas emissions intensity (including tenants) GHG emissions intensity (tco 2 e/m 2 ) Portugal Spain Italy Germany Greece Romania Brazil global intensity greenhouse gas emissions intensity (excluding tenants) GHG emissions intensity (tco 2 e/m 2 ) Portugal Spain Italy Germany Greece Romania Brazil global intensity data Qualifying note: This indicator covers all shopping centres owned by Sonae Sierra in operation during the full reporting year. In calculating this indicator, the numerator includes the scope 1 and scope 2 emissions according to GHG protocol methodology, plus shopping centres scope 3 emissions regarding waste and wastewater. The denominator includes the mall and toilet areas of the shopping centres. For this indicator there is a slight mismatch between the numerator and the denominator since energy consumption in technical areas and chilled and hot water that is supplied to some tenants is considered, but the floor areas are not. cre4 Greenhouse gas emissions intensity from new construction and redevelopment activity. Not reported in 2013.

96 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.95 < > EnvironmEntal aspects (CONTINuED) performance indicators (continued) Indicator En19 Reduction of greenhouse gas (GHG) emissions. Reported under EN6 on page 84 above. En21 NOx, SOx, and other significant air emissions. Air emissions by type (kg) NOx 44,532 Non Methane Volatile Organic Compounds (NMVOC) 7,615 Particulate Matter (PM) 359 SOx 475 Volatile Organic Compounds (VOC) 104,436 total 157,417 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). The information reported covers NOx, SOx and other significant air emissions from shopping centres boilers and from the on-site cogeneration system of NorteShopping in Portugal. Emissions from mobile sources such as the company car fleet and the emergency generators have not been included. The calculation of emissions from boilers has been made using the figures for natural gas consumption and associated emission factors. The methodology used is consistent with the IPCC Intergovernmental Panel on Climate Change and APA Portuguese Environment Agency (Agência Portuguesa do Ambiente). The calculation of emissions from cogeneration has been made based on direct measurements of the NOx, SOx and other significant air emissions.

97 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.96 < > EnvironmEntal aspects (CONTINuED) ASPECT: EFFluEntS and WaStE disclosures on management approach a) report the impacts that make this aspect material The construction and management of shopping centres can generate large volumes of waste that, if not managed properly, ends up in landfill. Landfilled waste is not only an inefficient use of resources (the waste and the land): it can generate damaging greenhouse gas emissions such as methane and carbon dioxide, as well as pollutants that can leach into the soil and groundwater. Consequently, disposal of waste in landfill is becoming more tightly regulated and more costly in most locations where we operate. On the other hand, good waste management can reduce environment impacts and be more cost effective for businesses as it avoids landfill tax and waste disposal costs. A closed-loop approach to waste management can also cut costs and environmental impacts associated with the consumption of raw materials. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Within the scope of our Safety, Health and Environment (SHE) Policy and procedures, we are committed to reducing the quantity of waste generated by our activities and to achieving high levels of waste recycling. We are also committed to reducing our impacts in relation to wastewater production. Goals and Targets We have set long-term objectives to: Ensure that all discharges to local water courses comply with Sonae Sierra s wastewater quality standards and pollutant limits, by Increase the proportion of total waste (by weight) that is recycled, recovered or reused and obtain a minimum recycling rate of 60% across our Sonae Sierra owned shopping centres, by Reduce the proportion of waste (by weight) that is sent to landfill below a maximum limit of 20% across Sonae Sierra owned shopping centres, by Increase the proportion of total waste (by weight) that is recycled, recovered or reused and obtain a minimum recycling rate of 85% across our main corporate offices, by Maintain a high level of performance in terms of waste recycling in construction projects and aim to increase the proportion of construction materials with recycled content. Responsibilities and Resources Responsibilities and resources for managing the effluents and waste aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Our Site Managers at each shopping centre are responsible for ensuring that waste is managed efficiently. This includes providing appropriate storage areas and equipment that are well maintained, preventing spillage and scattering during transportation, and producing monthly reports of waste volumes. We also provide staff with detailed instructions on waste codes, rules for waste storage and final destination, waste separation rules for non-hazardous waste and hazardous waste, and waste transportation in each country, particularly the documentation required. Specific Actions Effluents During the design phase, we are committed to incorporating solutions that reduce pollution to local water sources. For instance, to prevent pollution from rainwater run-off we specify filter drains and porous paving in external paved areas and stormwater management plans are implemented to contain or decrease stormwater run-off, according to the site s characteristics. Additionally, our SHEDS guarantee that equipment like grease and hydrocarbon separators or wastewater treatment plants are installed, minimising pollution through the pre-treatment of these effluents before they are discharged. Our shopping centres may have up to five separate wastewater collection systems, which enable different types of wastewater to be reused and/or treated, according to their characteristics.

98 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.97 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) Specific Actions Waste Our Safety, Health and Environment Development Standards (SHEDS) include a series of design requirements to maximise the waste separation potential of every shopping centre we develop, so that once the shopping centre is in operation waste can be effectively sorted and sent for recycling and recovery. A site specific Waste Strategy Study is undertaken during construction to establish adequate provision of space for waste segregation bins and compactors, temporary storage and internal preferential routes for disposal. We take a progressive approach to waste management during construction works, encouraging contractors to operate Waste Management Plans. Aware of the difficulty that arises from the construction process being directly controlled by construction companies, we are committed to gradually designing-out waste produced during construction (for example through off-site pre-fabrication). Where possible, we specify end of life recycling for building components, which is particularly relevant for our refurbishment activities. In addition, construction companies are required to report back to us the results of their waste management. During the operations phase, the waste handled by Sonae Sierra is largely generated by tenants activities. Aside from seeking to influence tenants practices, there is little that we can do to reduce waste production in our centres. Therefore, our waste management efforts are focused on waste segregation, management and disposal. Beyond legal requirements, we aim to progressively improve each shopping centre s waste recycling rate. For details of specific projects in 2013 to improve our management of wastewater and waste, see Our performance, pages 25 to 35. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the effluents and waste aspect is covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Specifically with respect to effluents, our wastewater quality standard controls wastewater quality beyond existing legal requirements. These are set out in our Wastewater Management procedure and include identifying all wastewater discharges into the municipal drainage systems and/or wastewater systems, and monitoring wastewater quality in accordance with the Technical Instruction for Wastewater Management. We analyse the results and in any cases of nonconformity we produce a report setting out corrective actions. Wastewater discharges are analysed regularly by externally certified laboratories, in order to control the contamination levels of our water discharges to municipal sewers, streams, etc. Among the main bio-chemical parameters usually analysed are Biological Oxygen Demand (BOD5), Chemical Oxygen Demand (COD), Fats and oils, Total Hydrocarbons, Total Suspend Solids (TSS), ph, Detergents and Sulphides. Through this control it is possible to prevent and to correct pollution to water sources. Results and Adjustments In addition to indicators G4-EN23 and G4-EN24 below, we also record the total waste recycled as a proportion of waste produced, and the proportion of waste that is sent to landfill across our owned portfolio (see Our Performance, page 31). In 2013 our shopping centres achieved a global recycling rate of 59% compared with 55% in The overall increase in our recycling rate was mainly due to the strong performance of Portugal, Italy and Germany who all achieved over 60%. We also reduced the proportion of waste sent to landfill, from 29% in 2012 to 20% in Our strong performance in this area was due to the performance of Portugal, Italy and Germany. We also record the total waste recycled and proportion of waste sent to landfill in our corporate offices. total waste recycled in our corporate offices (% by weight) proportion of waste that is sent to landfill in our corporate offices (% by weight) data Qualifying note: These indicators include all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Waste recycled includes waste sent for recycling, anaerobic digestion and composting.

99 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.98 < > EnvironmEntal aspects (CONTINuED) disclosures on management approach (continued) construction recycling indicator (% of total waste sent to recycling or recovery) on completed projects In 2013 we applied our waste management practices to all projects under construction and achieved a recycling rate of at least 95% for our completed projects. This performance is in line with construction projects in previous years and we met our target of 85%. total waste recycled on completed projects (% by weight) Centro Colombo (Primark) Boulevard Londrina Shopping Passeio das Águas Shopping Hofgarten Solingen 100% 100% 95% 100% data Qualifying note: This indicator includes all Sonae Sierra development projects completed in the reporting period. performance indicators Indicator g4-en23 Total weight of waste by type and disposal method. Shopping centre and corporate office waste (tonnes) Disposal Method Hazardous waste Non-hazardous waste Total % Anaerobic Digestion 1,531 1, % Composting 4,839 4, % Incineration with energy recovery 8,482 8, % Incineration without energy recovery 0.0% Landfill 8,454 8, % Recycling ,918 18, % Reuse % Treatment/Elimination % total ,463 41, % data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting period and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). The disposal method of the waste produced is provided by the waste disposal contractors. g4-en24 Total number and volume of significant spills. Sonae Sierra reports only significant spills with severe damage or very severe damage to the environment and requiring extensive effort to correct and recover. There were no such spills in This includes all chemical, oil, fuel, waste and other spill types at shopping centres owned by Sonae Sierra and in operation during the reporting year, all corporate offices with a SHEMS (Lisbon, Maia and São Paulo), and all Sonae Sierra projects under development.

100 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.99 < > EnvironmEntal aspects (CONTINuED) ASPECT: products and SErvicES disclosures on management approach a) report the impacts that make this aspect material Regulations and industry expectations concerning the sustainability performance of buildings have developed rapidly over the past few years. By applying sustainable design standards on new projects and significant expansions/refurbishments, we can prepare for new and emerging regulations whilst ensuring that our shopping centres are more attractive to investors and occupiers. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Within the scope of our Safety, Health and Environment (SHE) Policy and procedures (see page 47 above), we are committed to ensuring that our shopping centres (as our products ) comply with high environmental standards. This includes standards for environmental design and operation. Goals and Targets We have set a long-term objective to obtain ISO and OHSAS certifications for the SHEMS of our construction projects and owned assets that we have managed for two or more years, by Responsibilities and Resources Responsibilities and resources for managing the products and services aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Specific Actions Environmental Standards for Development and Management of Shopping Centres Through our years of experience in designing, constructing, owning and managing shopping centres we identified the sustainability features which are most important for our operations. Our Safety, Health and Environment Development Standards (SHEDS) have been developed with reference to our own experience; best available techniques; international certification schemes such as LEED and BREEAM and internationally recognised safety standards such as the National Fire Protection Association (NFPA) and European safety standards. During the construction and operations phases, we operate Safety, Health and Environment (SHE) Management Systems in all our construction sites and owned shopping centres which are based on ISO and OHSAS standards. Applying these standards enables us to guarantee that all SHE risks are identified and controlled. It is also part of our policy to seek third party audit and certification of the SHE Management Systems across all our sites. By obtaining ISO and OHSAS certification, shopping centres ensure that their management systems are aligned with Sonae Sierra s corporate policy and that SHE procedures have been fully implemented. Certification demonstrates to our stakeholders our visible commitment to managing our SHE impacts and helps us to reduce the costs associated with those impacts. For further information about our SHEDS and SHEMS, see Governance, Safety, Health and Environment Management System, page 47. For examples of specific projects in 2013 concerning environmental design and management of shopping centres, see Our performance, pages 25 to 35. GRI G3.1 CRESS Specific Actions Indoor Air Quality We have a corporate procedure applicable to all shopping centres (and a similar one for offices) to guarantee that acceptable indoor air quality is maintained. This involves conducting regular monitoring of critical air quality indicators, including Volatile Organic Compounds (VOC) emissions; periodic indoor air quality audits which cover a range of different parameters; and Legionella monitoring. Four of our air quality parameters (air temperature; relative humidity; CO 2 and carbon monoxide (CO)) are monitored on-line and transmitted to the public who visit our shopping centres through television screens in the mall areas. During the design phase, the SHEDS include standards which guarantee the use of the best equipment for Legionella control and the ongoing monitoring of indoor air quality parameters. For example, cooling towers must be made from materials that are corrosion resistant; must not contribute to microbiological growth; must be easy to clean and should entail drift eliminator devices.

101 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.100 < > ENVIRONMENTAL ASPECTS (CONTINUED) Disclosures on Management Approach (continued) c) Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The extent of implementation of the SHEDS on each of our projects is assessed by an external advisor. Our local SHEMS are assessed by a third party certifier as part of the process for achieving ISO and OHSAS certifications. Results and Adjustments See Our performance, pages 25 to 35, GRI Indicator G4-EN27 (see below), and CRE 8 reported under the aspect Product and Service Labelling on page 135 below. Performance Indicators Indicator G4-EN27 Extent of impact mitigation of environmental impacts of products and services. Shopping centres and corporate offices 2013 (since the implementation date) Whole Year Site Initiative Description Extent of impact mitigation Centro Vasco Improvement to groundwater withdrawal system to 7,966m 3 12,745m 3 da Gama increase groundwater consumption and decrease water from mains. Parque Atlântico New green area in place of an external fountain. 173m 3 276m 3 Shopping Campo Installation of waterless urinals. 180m 3 4,320m 3 Limpo RioSul Shopping Installation of waterless urinals. 121m 3 241m 3 Luz del Tajo Installation of an on-site composting facility tonnes of waste sent 43.6 tonnes of waste sent to composting to composting Shopping Plaza Sul Implementation of several measures to reduce water 7,187m 3 7,187m 3 consumption: daily control of water flow in taps; tenants, staff and visitors awareness raising regarding ways to reduce water consumption and installation of water flow reducers in taps. CascaiShopping Improvement of wastewater network with installation Hydrocarbons value Hydrocarbons value of oil/water separators. decreased from 86 mg/l decreased from 86 mg/l to 30mg/L to 30mg/L Boavista Shopping Implementation of water monitoring measures for water 6,052m 3 6,304m 3 consumption such as daily meter control, and installation of water flow reducers in toilets. All Portuguese and Green energy contracts to procure energy from renewable 25,000 tonnes of CO 2 e 25,000 tonnes of CO 2 e Spanish owned sources (e.g. solar). shopping centres except AlbufeiraShopping, MadeiraShopping and Parque Atlântico (Portugal); GranCasa (Spain)

102 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.101 < > EnvironmEntal aspects (CONTINuED) performance indicators (continued) Indicator g4-en27 Extent of impact mitigation of environmental impacts of products and services. (continued) development Development Project Centro Colombo Primark Boulevard Londrina Shopping Passeio das Águas Shopping Hofgarten Solingen Extent of impact mitigation An 88% rate for off-site materials integration was achieved. Installed taps have an automatic shut off valve and 6 L/min flow rate at 2Bar. Toilet cisterns are dual flush with a selective water discharge of 6 or 3 litres. urinal valves are electronically activated by an infrared body sensor, which discharges a maximum of 1L per use. The water distribution network allowed the isolation of different sectors as well as easy access for maintenance and inspection purposes. Rainwater is collected from the roofs and stored in a tank reservoir. Materials with recycled content represented 44% of the total material Cost. A total of 97,490,197Kg of local/regionally sourced heavy materials were used, representing 97% of the total heavy materials cost. A total of R$ 433,417 of local/regionally sourced light materials were used, representing 34% of the total light materials cost. Approximately 90% (by cost) of the installed wood is FSC certified. All paint used is lead compound-free. None of the insulation products contains CFC or HCFC. The green areas represent 20% of the total site area. All species are native or well adapted to local conditions. All external lights with power above 100W comply with light pollution requirements. The development management team consulted all significant stakeholder organisations, including the Municipality of Londrina, to improve local public transport. As a result, a bus stop, taxi point and a cycle lane were created inside the shopping centre s boundaries. Information regarding bus services was provided at the public information display inside the mall along with a map of where bus stops are located. Additionally, the operational management team assumed responsibility to conduct a survey to check if there was a need to create additional parking spaces for car sharing. The pedestrian pathways were designed in a way which minimises road crossing, following straight lines between destinations and are surrounded by landscaped areas. The shopping centre provided approximately 148 spaces for motorcycle parking at a clearly marked and isolated area of the parking lot with additional signage at the car park entrance. An estimated 1.866m 3 of rainwater will be used each year. Premium ecological features were protected, namely a large tree in front of one of the southeast building entrances and a preservation area northwest of the building. 83% of the tree specimens used after construction works were native or adapted to local conditions. The pedestrian pathways were designed to minimise road crossings, following straight lines between destinations and surrounded by landscaped areas. Vegetation with a low water demand was used. Additionally, a programmable drip irrigation system was installed further promoting water conservation. The water distribution network allows for the isolation of different sectors to optimise operational water use and minimise leakage problems. All paints and other decorative finishings are lead compound-free. The pedestrian pathways were designed to minimise road crossings, following straight lines between destinations and surrounded by landscaped areas. The shopping centre provides bus waiting areas and taxi stands. Information regarding available bus services is provided via an electronic public information display outside the centre. The centre is surrounded by residential buildings and infrastructure that is regularly occupied but minimum distances required to avoid impacts on neighbouring buildings were kept. data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year, all corporate offices with a SHEMS (Lisbon, Maia and São Paulo), and all development projects completed within the reporting year.

103 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.102 < > ENVIRONMENTAL ASPECTS (CONTINUED) ASPECT: COMPLIANCE Disclosures on Management Approach a) Report the impacts that make this Aspect material As observed with regards to energy, emissions and waste aspects, regulation on environmental impacts is becoming more stringent across the globe. Furthermore, our Safety, Health and Environment (SHE) Policy iterates our commitment to adopt appropriate practices with reference to international standards that go beyond compliance with SHE legislation. It is therefore essential that we guarantee compliance, as a very minimum, with all environmental legislation applicable to our business activities. b) Report how the organisation manages the material Aspect or its impacts Policies and Commitments Our SHEMS ensures that, as a minimum, Sonae Sierra complies with all SHE legislation and regulations in the countries where it operates. Goals and Targets Compliance, for us, is the very minimum standard for SHE performance. We have established a range of objectives and targets whereby we seek to improve our performance beyond compliance. See the Disclosures on Management Approach for other environmental aspects on page 74 above. Responsibilities and Resources Responsibilities and resources for managing the compliance aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. c) Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the compliance aspect is covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Results and Adjustments We aim to achieve levels of environmental performance beyond compliance. See the results reported in the Disclosures on Management Approach for other environmental aspects on pages 79 to 104 above, Our performance, pages 25 to 35, and GRI indicator G4-EN29 below. Performance Indicators Indicator G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. In 2013 Sonae Sierra did not receive any significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations. This includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all corporate offices with a Safety, Health and Environment Management system in place (Lisbon, Maia and São Paulo) and all projects that were under development during the reporting year. Sonae Sierra does not have a threshold of significance in terms of fines. All fines are reported regardless of their value.

104 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.103 < > EnvironmEntal aspects (CONTINuED) ASPECT: EnvironmEntal grievance mechanisms disclosures on management approach a) report the impacts that make this aspect material Effective grievance mechanisms play an important role in remediating impacts that may be material to stakeholders. Therefore, we consider it cautious to consider this to be a material impact within the scope of our reporting on environmental performance. b) report how the organisation manages the material aspect or its impacts. describe the availability and accessibility of grievance mechanisms and remediation processes for environmental impacts, including along the organisation s supply chain, and the involvement of stakeholders in monitoring their effectiveness Policies and Commitments Within the scope of our SHE Policy, we are committed to ensuring that risks to people, assets and ecosystems are minimised. As a business, we are also committed to being open to and responding to feedback received from our stakeholders, including complaints brought against our organisation. Goals and Targets We do not set specific objectives and targets in relation to Environmental Grievance Mechanisms. Responsibilities and Resources Responsibilities and resources for managing the environmental grievance mechanisms aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74 above. Furthermore, the Sierra Ombudsman, described on page 121, constitutes a formal grievance mechanism to which all stakeholders may present complaints of any kind with an assurance that they will be processed, investigated, and responded to in a timely and sensitive manner. Specific Actions Not applicable. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring We monitor the number and proportion of complaints we receive about environmental concerns, as well as articles released by the media that are positive or neutral related to environmental aspects. We also monitor complaints made through the Sierra Ombudsman, according to type of complaint as well as a range of other factors such as location and eventual resolution. Results and Adjustments See GRI indicator G4-EN34. We also monitor the number of articles released by the media covering environmental aspects of our performance. In 2013, we recorded 896 such articles, of which only one was negative. This includes all countries where Sonae Sierra operated during the reporting year, except Greece which did not monitor media coverage.

105 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.104 < > EnvironmEntal aspects (CONTINuED) performance indicators Indicator g4-en34 Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms. Country Number of grievances Portugal 52 Germany 2 Brazil 25 Corporate 1 total 80 Number of grievances addressed by external stakeholders (visitors, neighbours, tenants etc.) 79 Number of grievances addressed by individuals or groups identified as underrepresented social groups or other indicators of diversity 1 Number of grievances resolved during the reporting year 77 Total number of grievances addressed in the previous reporting year, which were resolved during data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period; all Sonae Sierra development projects completed within the reporting period; all corporate offices with a SHEMS (Lisbon, Maia and São Paulo); and grievances addressed directly to Sonae Sierra at a corporate level.

106 annex: global reporting initiative.105 SONAE SIERRA 2013 Economic, Environmental and Social Report < > labour practices and decent WorK aspects parque d. pedro Shopping, Brazil ASPECT: occupational health and SaFEty disclosures on management approach a) report the impacts that make this aspect material Safety and Health (S&H) incidents occurring in the workplace can cause harm to workers and expose companies to risks such as reputational damage, fines and, in the case of construction and building works, delays on projects. On the other hand, a progressive approach to S&H can help to protect people, reduce insurance costs, reduce staff absence and enhance a company s reputation. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts and describe programmes related to assisting workforce members, their families, or community members regarding serious diseases, including whether such programs involve education and training, counselling, prevention and risk control measures, or treatment Policies and Commitments Our Safety, Health and Environment Policy establishes our responsibility to conduct our activities so that risks towards people, assets and ecosystems are minimised, and benefits enhanced. Further references: Click here to read our Safety, Health and Environment Policy, which is available on our corporate website. Goals and Targets We have set long-term objectives to: Enhance the well-being of our workforce and reduce the rate and severity of workplace accidents and occupational diseases, aiming towards zero. Anticipate and prevent all safety risks on Sonae Sierra construction sites, minimising the number of accidents and their severity, aiming towards zero. Provide a safe environment for everyone who visits or works within Sonae Sierra shopping centres, aiming towards zero accidents, and promote safe and healthy behaviour among our tenants, suppliers and visitors.

107 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.106 < > labour practices and decent WorK aspects (CONTINuED) disclosures on management approach (continued) Responsibilities and Resources ultimate responsibility for S&H aspects lies with Sonae Sierra s CEO and Executive Committee. The Sustainability Steering Committee constitutes the senior level of decision making; this Committee establishes the SHE Policy, goals and objectives and monitors progress with respect to these objectives. The Sustainability Office actively supports the Sustainability Steering Committee and advises on SHE Policy and standards. Responsibility for the implementation of our Safety, Health and Environment Development Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures is assigned to all leaders and managers in the organisation, who are also required to demonstrate a strong visible management commitment. Our organisation as a whole is supported by the SHE network, which provides advice on S&H. Our SHE Policy commits us to promoting safety training among our stakeholders. Our SHEMS includes a competence, training and awareness procedure, whereby a competence matrix is used to identify the level of training required for each role and function during the annual personal assessment process. For example, all new Sonae Sierra employees must receive S&H induction training, and all Site Managers, Site Correspondents and Country SHE Coordinators must attend training on all the SHE procedures within our SHEMS, as well as on legal S&H issues specific to the country where they coordinate SHE management. We collaborate closely with our critical suppliers on specific issues relating to SHE through our SHEMS procedures. Our SHE training plans for each site include the identification of training needs for service suppliers. GRI G3.1 CRESS Specific Actions Development and Service Supplier Safety Our Service Suppliers Management Procedures for Development and Property Management define the various steps that should be followed from the pre-selection and bidding process through to contract closure and post-contract evaluation. Both our Development and Property Management businesses have integrated the requirements of Sonae Sierra s Safety, Health and Environment Management System (SHEMS) into their Service Suppliers Management Procedures, so that these are set up in a way to ensure that our main suppliers performance meets with Sonae Sierra s Safety, Health and Environment (SHE) requirements. Within the scope of these procedures, all contracts with critical suppliers must include SHE clauses, and sub-contractors have the same level of SHE requirements as contractors. If no formal contracts are signed, then the service supplier must sign a Warranty Declaration to guarantee that SHE requirements will be met. We have also established SHE regulations for service providers, which include, for example, the obligation for suppliers to adopt protective measures to minimise risks that workers are exposed to. Compliance with these regulations is checked during work supervision and for long-term contracts (including contractors from construction sites) and S&H performance is evaluated during works execution. All new shopping centre development projects must implement a site-specific SHEMS and achieve certification in accordance with the OHSAS standard for the entire construction phase. Additionally, a Safety Plan is drawn up for each of our construction sites and compliance with this plan is compulsory for all contractors. Contractors cannot begin any activity without the validation of this document by the site s S&H Coordinator and Sonae Sierra s prior approval. Each of our development projects has a full time S&H Coordinator to validate contractors risk assessments and, if necessary, establish additional control measures. The S&H Coordinators and outsourced project management teams carry out permanent S&H supervision and planning on construction works identifying and correcting unsafe actions wherever necessary. In respect to expansions and refurbishments a simplified SHEMS is also implemented (see page 47 for further details). We investigate the cause of all incidents and communicate across the Company the lessons that can be learned to avoid a repeat occurrence. This is done using Alerts, a communication tool that is also used during the construction phase. We also hold regular SHE Meetings and carry out emergency practice drills on all construction sites. GRI G3.1 CRESS Specific Actions Procedures to identify and evaluate S&H risks to people Prior to the commencement of construction or refurbishment works, all design teams consider our Safety, Health and Environment Development Standards (SHEDS) during the concept and architectural development phase of all our new shopping centres, refurbishment or expansion projects and minor works. The SHEDS aid us in minimising S&H risks from the outset of each shopping centre s development and into the operations phase. The implementation of the standards is mandatory for all projects and is checked through a final audit carried out by a third party. Compliance with local S&H regulations is also verified by competent authorities prior to opening as part of the licensing procedure for new shopping centres. We also operate a corporate risk matrix that is used by centres to create a tailored risk matrix based on the safety and health risks to people during the operational phase. This includes defined procedures for routine activities, non-routine activities, such as fit outs and improvements to tenant units, and emergency procedures. For more information, see G4-LA7 (page 111).

108 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.107 < > labour practices and decent WorK aspects (CONTINuED) disclosures on management approach (continued) GRI G3.1 CRESS Specific Actions Policies and procedures for the procurement, transport, handling, use and disposal of hazardous materials During the New Business phase of our own projects, Environmental Due Diligence and an Environmental Impact Study are undertaken so that we can understand the potential environmental liabilities that sites may contain (such as contaminated land or materials) and therefore guarantee sufficient budget in our Investment Plans to adequately deal with these issues. During the design phase, within our SHEDS there is a specific requirement which is included within the design team and contractors service agreements which prohibits the use of certain hazardous materials and substances (as defined by Sonae Sierra) throughout the construction works. For the construction phase, the use and disposal of hazardous materials is controlled by the implementation of our SHE procedures for development; namely the SHEMS for new projects, the Safety, Health and Environment Monitoring Plan (SHEMP) for major refurbishments and expansions, and the small works procedure for minor interventions. The on-site S&H Coordinators and Development teams maintain a record of hazardous materials which come onto the site and are disposed of from the site. During the operations phase and within corporate offices, we have a procedure in place that sets out the main safety recommendations for handling hazardous products, including the hazard characteristics of products, the labelling rules, storage incompatibilities and recommended protective measures. These are supported by posters to raise awareness among service suppliers around the correct storage and handling of these products. Where possible, we work with service suppliers to replace hazardous products with less hazardous alternatives that share similar characteristics. Specific Actions Programmes related to assisting workforce members, their families, or community members regarding serious diseases We provide education and training, counselling and prevention programmes for employees, their families and community members regarding serious diseases or potential long-term damage to health. Coverage of programmes Education/Training Counselling Prevention Treatment Staff Yes Yes Yes n/a Families of staff Yes Yes Yes n/a Community members Yes Yes Yes n/a During 2013, six specific education, training, counselling, prevention and risk-control programmes were in place to assist workforce members and their families regarding serious diseases or potential long-term damage to health. These were: 1. Safety Tips practice: Safety Tips provide staff with guidance on how to best respond to different every-day situations covering a wide range of issues, among them risk prevention measures on diseases or long-term damage to health. In 2013 Safety Tips delivered to staff and their families included advice about: Walking safely on slippery surfaces. Noise. How to read the label. Are you well hydrated? Never Leave Children in Cars a major risk of death through hyperthermia. Earthquake Procedures (Practice Drop, Cover and Hold). 2. Shopping centres and offices campaigns: in 2013 Sonae Sierra undertook several campaigns to raise public awareness about serious diseases. For example celebrating World Day for Safety & Health at Work on 28 th April. The campaign called Eyes On Risk aimed to remind employees of the daily risks that they are exposed to, and encourage them to adopt the safest behaviour possible, not only for their own sake, but for the safety of others as well. We also help events related to S&H issues at shopping centres (for example the continuation of a campaign to promote safe escalator use at all shopping centres in Europe). Our shopping centres in Portugal supported A Terra Treme (The earth is trembling), a nationwide initiative organised by the National Authority for Civil Protection to teach people how to respond in the event of an earthquake. Awareness-raising events for shopping centre visitors, tenants and local schools featured information displays and practice drills involving the emergency services and actors simulating an earth quake event. 3. Induction training: safety & health and environment training for new staff, service suppliers and tenants (all countries). 4. First aid courses: some members of our staff in Portugal (Lisbon office), Italy (Milan Office) and Germany (Düsseldorf Office) completed a basic first aid course (provided in Portugal by the Portuguese Red Cross). This course included many practical skills required by a first aider in the modern workplace such as treating patients who have experienced a heart attack, who are unconscious, or are suffering from shock, chocking, poisoning, bleeding, burns or scalds.

109 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.108 < > labour practices and decent WorK aspects (CONTINuED) disclosures on management approach (continued) 5. Defibrillator: Some employees in Romania (Bucharest Office), Germany (Düsseldorf office) and Spain (Madrid Office) received specific training on how and when to use an external automatic defibrillator. 6. Training on the use of fire extinguishers in Portugal, Spain, Italy, Romania and Germany to staff, service suppliers and tenants. Education and Training is provided in all local languages or in English. Sonae Sierra has defined a transversal procedure in our Safety, Health and Environment Management System aimed at identifying and evaluating S&H hazards and risks to Sonae Sierra s stakeholders. This evaluation is made for all activities covering offices, shopping centres in operation and development projects, and through which we identify the potential consequences to people, identifying both injuries (e.g. cuts, burns etc.) and occupational diseases (e.g. musculoskeletal disorders, hearing loss etc.). As we evaluate a hazard we have to consider existing control measures and deficiencies, the periodicity/probability of the hazard s occurrence and its potential severity. Any non acceptable risks that are identified must result in the implementation of additional risk control measures until the risk is classified as acceptable. Examples include: In our shopping centres, we identified that the inspection and testing of emergency generators could cause the loss of hearing capacity. To avoid this, we implemented several controls such as short term worker exposure to noise, regular noise measurements and communication of results, and the mandatory use of suitable hearing protectors. In our offices, we identified the possibility of musculoskeletal disorders from handling air conditioning units for maintenance. To avoid this, we provide mechanical transportation equipment, training on its functionality and regular inspections to ensure it is being used properly. All matrices are validated by qualified technicians, either the Country Safety, Health and Environment Coordinators in offices and operational centres, or S&H Coordinators in development sites, and then approved by the respective site manager. Additionally, in all countries where this is demanded by law, an occupational doctor also provides follow-up and feedback to Sonae Sierra employees in regular consultations and evaluates each employee s workstation to avoid any future occupational disease. Regarding shopping centres under development, we have acknowledged that the task of identifying the number of workers that are exposed to a specific risk at a specific moment is extremely complex due to site specific factors, and that the time and effort required for this identification will not produce relevant benefits to Sonae Sierra. We focus most of our efforts on ensuring that all existent risks in each construction site have proper control measures in place. We have identified that workers on construction sites are more exposed to: noise, vibration, dust and working with concrete. Knowing this, and to minimise the associated risks, worker rotation, awareness raising and the use of personal protective equipment was implemented. In shopping centre management activities the risks of serious occupational diseases are less extensive than in development. However, Sonae Sierra has identified eleven occupational diseases, all relevant to service suppliers. Some examples include tendonitis, loss or reduction of hearing capacity or Raynaud phenomenon. The stakeholders that are more exposed to risk of occupational diseases are maintenance and cleaning service suppliers. In corporate offices the only risk identified is the risk of tendonitis and Carpal tunnel syndrome. During 2013, there was one occupational disease recorded in Portugal. It was a case of tendonitis, which is consistent with our risk analysis. GRI G3.1 CRESS Specific Actions Policies and procedures for assisting employees with mental health issues, substance and alcohol addiction, and HIV/AIDS Alcohol and drug use is prohibited during work shifts and inside all of our construction sites. This is strictly followed up by the site S&H Coordinators and S&H Technicians throughout the entire construction process. GRI G3.1 CRESS Specific Actions Policy on compensation and benefits for employees for work-related injuries and fatalities Compensation and benefits are provided in accordance with the law; i.e. through insurance policies. Specific clauses are added to service agreements with contractors in order to ensure that, in cases of serious work-related injuries or fatalities, the fines that are paid to Sonae Sierra revert to the families of injured workers. GRI G3.1 CRESS Specific Actions Policies and procedures for the commissioning, operation and decommissioning of equipment Our contracts with service suppliers include requirements to make sure that pre-opening testing of the building and training on new equipment is performed so as to make sure that teams are trained to deal with all systems capabilities and functionalities. Decommissioning takes place within the scope of our SHE and maintenance procedures, which make sure that the efficiency of shopping centre systems is closely reviewed and that investments are proposed to upgrade equipment where applicable.

110 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.109 < > LABOUR PRACTICES AND DECENT WORK ASPECTS (CONTINUED) Disclosures on Management Approach (continued) c) Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The monitoring of our performance in relation to the occupational health and safety aspect is covered by our SHEMS. See Governance, Safety, Health and Environment Management System, pages 47 to 48 and Disclosures on Management Approach for the Environmental Aspect Overall on page 74. Results and Adjustments In addition to GRI indicators G4-LA6, G4-LA7 and CRE6 below, we record the Lost Workday Case Accidents Rate for development and service suppliers. These both fell in 2013 to 4.3 and 2.17 respectively. The severity of construction site accidents measured as the Accident Severity Rate also fell to Despite these falls, we saw an increase in the global frequency rate of level 3, 4 and 5 category accidents per million visits to 1.73 (see Our Performance, page 25 and 35). Total number of man hours of Safety and Health training and awareness provided across all Sonae Sierra sites. We maintained our strong focus on incident prevention and in 2013 we delivered a total of 22,544 man hours of Safety and Health (S&H) training and awareness to our employees. The decrease from 2013 can be attributed to the fact that there were no significant changes to our SHEMS and a number of development projects were completed during the year. A total of 1,218 training sessions were held, involving 18,791 participants. These sessions included training on issues such as Sonae Sierra s SHEMS procedures; incident reporting and investigation; emergency response procedures; the use of the SHE Portal; SHE Preventive Observations (SPO) and Safe Practice Index (SPI) audits. Number of man hours of S&H training provided in all Sonae Sierra sites (Number of hours) ,544 31,680 37,154 41,495 Data Qualifying Note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period; all shopping centres managed but not owned by Sonae Sierra during the reporting period; all projects under development during the reporting period; and all corporate offices in operation during the reporting period. Number of hours of Safety, Health and Environment Preventive Observation (SPO) performed in shopping centres and corporate offices. In 2013 we performed 9,697 hours of SHE Preventive Observations (SPO) across our shopping centres (including some of those which we manage on behalf of others). SPO allow us to identify and correct behaviour which could potentially lead to incidents, and are therefore an important part of our incident prevention strategy. The number of hours of SPO performed in 2013 decreased by around 5% in comparison to This was due to the sale of Parque Principado in October 2013, and the fact that the three shopping centres that opened in 2013 did not have specific targets to perform SPO actions. There was also a decrease in the number of hours of SPO actions at shopping centres under management (but not owned by Sonae Sierra) as they are not a mandatory requirement. Number of hours of SPO performed in shopping centres and corporate offices (Number of hours) ,697 10,187 10,795 12,880 Data Qualifying Note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period, all shopping centres managed but not owned by Sonae Sierra, all corporate offices with a SHEMS (Lisbon, Maia and São Paulo Offices), and all corporate offices with a Safety and Health Management System (Milan, Madrid, Düsseldorf and Bucharest).

111 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.110 < > LABOUR PRACTICES AND DECENT WORK ASPECTS (CONTINUED) Disclosures on Management Approach (continued) Number of non-conformities detected per hour of reference SPO. In 2013, we identified an average of 8.4 non-conformities per hour of reference SPO, a 14% increase compared to Number of non-conformities detected per hour of reference SPO (Number of non-conformities) Data Qualifying Note: This includes all shopping centres owned by Sonae Sierra and in operation during the reporting period. It relates to the number of non-conformities per hour of SHE Preventive Observations audited by the Sustainability Office team and CSHEC (Country S&H and Environment Coordinators). The number of non-conformities per hour of SPO is calculated as the total number of S&H and SHE non-conformities in all sites divided by 80% of the total number of SPO hours performed in all sites. The value reported for the indicator reflects the results obtained for the year to date (since the beginning of the year). Number of drills performed divided by total number of sites in operation. In 2013 our shopping centres performed an average of 2.2 emergency practice drills covering evacuations, fire, gas leakages and earthquakes. Number of drills performed divided by total number of sites (Number of drills per site) Data Qualifying Note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for at least six weeks of the reporting period, and all corporate offices. This indicator is calculated by dividing the total number of practice SHE emergency drills carried out across all sites of operation and corporate offices by the number of sites. Safe Practice Index (SPI). We use the Safe Practice Index (SPI) audit tool to assess and improve safety conditions on our construction sites. The SPI measures the level of adherence to Sonae Sierra s S&H requirements as construction works evolve. The higher the index, the higher the level of safety awareness amongst the construction workforce. In 2013, the average SPI score across all our construction sites was 94%, up from 85% in Where deviations or non-conformities are detected, various actions can be taken, such as correcting them, increasing worker supervision, or providing further training or more resources. Safe Practice Index (%) % 85% 94% 92% Data Qualifying Note: This indicator includes all projects under development during the reporting period and all development projects completed within the reporting period. The SPI is obtained by assigning different weights to each of the observed unsafe acts and conditions, according to their likelihood to generate an accident and its possible severity. The number of observed persons and the duration of the audit are also taken into account. One of our other successes in 2013 was the creation of a procedure to reduce risks for our staff travelling to countries where we are seeking to develop new business. This ensures that all travellers receive an on medical and security risks in the country they are going to visit. We also increased the provision of travel insurance for employees and began training staff on precautionary procedures they should follow when travelling abroad for business purposes according to the country s specific level of risk.

112 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.111 < > labour practices and decent WorK aspects (CONTINuED) performance indicators Indicator g4-la6 Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities, by region and by gender. Occupational Injury Rate disease rate Lost day rate Absentee rate Fatalities Sonae Sierra Workforce (direct employees and supervised workers) data Qualifying note: This indicator includes all Sonae Sierra direct employees (i.e. employees on Sonae Sierra payroll); all Sonae Sierra supervised workers during the reporting period; and all independent contractors working on-site during the reporting period. Regarding independent contractors and trainees, there are no injuries, occupational diseases, lost days, absentee and fatalities to be reported. The formulas used to calculate the presented rates are: Injury rate = (Number of injury * 1,000,000)/Total time worked. Occupational disease rate = (Number of occupational diseases * 1,000,000)/Total time worked. Lost day rate = (Number of lost days * 1,000,000)/Total time worked. Absentee rate = Absentee in period (hours)/total time worked. The Total time worked equals the total number of workable days (excluding vacation and holidays) multiplying by the average total workforce and multiplying by 8 hours (units in hours). The Average total workforce equals the sum of the total number of employees (direct employees and supervised workers) at each month end divided by 12 months. Injuries reported don t include minor injuries (first-aid level). For Sonae Sierra days means scheduled work days and lost days count begins in the immediate working shift (or day) after the accident/occupational disease manifestation occurred. It was not possible to report the information broken down by gender, which we will try to report in our next Economic, Environmental and Social Report. g4-la7 Workers with high incidence or high risk of diseases related to their occupation. Sonae Sierra has defined a transversal procedure in its SHEMS aimed at identifying and evaluating S&H hazards and risks to people. An evaluation is made for every area in offices, centres in operation and development projects, and through this we identify the associated activities that are developed, the periodicity of occurrence, the activity s responsible and the potential consequences to people, identifying both injuries (e.g. cuts, burns) and occupational diseases (e.g. musculoskeletal disorders, hearing loss). This risk analysis includes all risks identified to Sonae Sierra s workforce, external suppliers, tenants and visitors considering, whenever available, the risk analysis provided by these stakeholders as a reference for our own risk assessment. As we evaluate a hazard we have to consider the existent control measures and deficiencies, the periodicity/probability of the hazard s occurrence, and its potential severity. After considering all these issues, we classify hazards into four separate risk levels: two that are considered as acceptable and two non-acceptable. Any non acceptable risks that are identified must result in the implementation of additional risk control measures until the risk is classified into one of the two acceptable risk categories. Examples: In our shopping centres, we identified that the inspection and testing of emergency generators could lead to a loss of hearing capacity. To avoid this we implemented several controls, like short term worker exposure to noise, regular noise measurements and the communication of the results, mandatory personal protective equipment use, signage and the provision of suitable hearing protectors. In our offices, the possibility of air handling unit maintenance operations causing musculoskeletal disorders was recognized. To avoid this, we provided mechanical transport equipment to ease the work, training on its functionality and regular inspections of the equipment. In development sites, we identified that workers involved in demolition activities are more susceptible to picking up respiratory problems due to excessive dust conditions, so we set measures such as: humidifying all areas to be demolished and providing all involved workers with suitable masks and training on their proper use. All matrices are validated by qualified technicians, either the Country Safety, Health and Environment Coordinators in offices and operational centres, or Safety & Health Coordinators in development sites, and then approved by the respective site manager. In shopping centres, besides the previous validation, the matrices are also validated on site by a Safety and Health Technician that is dedicated to concerns related to risks for staff.

113 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.112 < > labour practices and decent WorK aspects (CONTINuED) performance indicators (continued) g4-la7 Workers with high incidence or high risk of diseases related to their occupation. (continued) Additionally, in all countries where this is demanded by law, an occupational doctor also provides follow-up and feedback to Sonae Sierra staff in regular consultations and evaluates each member of staff s workstation to evaluate it and eliminate any possible future occupational health complaints or problems. Regarding shopping centres under development, we have acknowledged that the task of identifying the number of workers that are exposed to a specific risk in a specific moment is extremely complex (due to site specific factors such as: the variation of construction processes; the multiplicity of tasks that a worker may perform; or the previous training that workers have undertaken) and that the time and effort put into this identification will not produce relevant benefits to Sonae Sierra. Our posture focuses most of our efforts on ensuring that all existent risks in each construction site have proper control measures associated with them and on continuously following up on the adequacy of these control measures throughout construction. We identified that workers on construction sites are more exposed to: noise, vibration, dust and working with concrete. Knowing this, and to minimise the associated risks, the following measures are implemented: worker rotation, awareness raising and the use of personal protective equipment (i.e. masks, glasses, gloves, cleaning and use of specific uniforms). All sites have to perform the risks and hazards assessment, to evaluate which are the risks that workers are exposed to, and then all assessments are validated by qualified technicians, either the Country Safety, Health and Environment Coordinators in offices and operational centres, or Safety & Health Coordinators on development sites, and then approved by the respective site manager. In management activity the risks of serious occupational diseases are less extensive than in development. However Sonae Sierra was able to identify eleven occupational diseases, all in service suppliers. Some examples are tendonitis, loss or reduction of hearing capacity or Raynaud phenomenon. The stakeholders that are more exposed to risk of occupational diseases are maintenance and cleaning service suppliers. In corporate offices the only risk identified is the risk of tendonitis and Carpal tunnel syndrome. During 2013 there was one occupational disease recorded in Portugal. It was a case of tendonitis, which is consistent with our risk analysis. cre6 Percentage of the organisation operating in verified compliance with an internationally recognised health and safety management system. Direct Supervised Independent Employees Workers Contractors total workforce and independent contractors 1, Total number of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS Percentage of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS (%) 46% 40% 80% Total number of direct employees, supervised workers and independent contractors, internally verified to be operating in compliance with the safety and health management system (S&HMS) Percentage of direct employees, supervised workers and independent contractors, internally verified to be operating in compliance with the safety and health management system (S&HMS) (%) 87% 90% 100% data Qualifying note: This indicator includes all Sonae Sierra direct employees, supervised workers and independent contractors at the end of the reporting period. Some employees are covered by an internally verified S&HMS as well as an externally verified S&HMS, therefore the figures in the table add up to more than the total number of direct employees, supervised workers and independent contractors.

114 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.113 < > labour practices and decent WorK aspects (CONTINuED) ASPECT: training and Education disclosures on management approach a) report the impacts that make this aspect material Developing and retaining talent can increase a company s competitiveness: talent developed and retained enhances know-how, increases the potential for innovation and supports a strong reputation. In turn, a strong reputation helps to attract new talent, thus perpetuating the cycle. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Within the scope of our long-term priority Leveraging Knowledge we are committed to empowering people through skills and knowledge. Our Code of Conduct includes principles to identify our employees training needs; encouraging our employees to identify their own training needs and providing the most suitable training to all staff. Further references: Click here to read our Code of Conduct, which is available on our corporate website. Goals and Targets Our Business model and strategy, page 14. Responsibilities and Resources ultimate responsibility for employment aspects, including training and education, lies with Sonae Sierra s CEO and the Executive Committee. Operational responsibility is divided among line managers within each of our business divisions, from senior management downwards. The Human Resources (HR) Department lends a supporting role by proactively intervening in the development and execution of the HR strategy and policies and providing quality HR advice to business leaders. In terms of resources, we have a HR team covering different areas, including local support (Country Coordinators) and specific activities such as compensation and benefits; training and development; recruitment, selection and talent; performance management and communications. We outsource payroll management (except in Portugal) and legal support. We use a number of IT tools based around SAP, including our Improving Our People (IOP) Performance Management Tool, which can be accessed by all employees through our HR portal.

115 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.114 < > labour practices and decent WorK aspects (CONTINuED) disclosures on management approach (continued) Specific Actions Training Our internal training programmes include, in Europe: We Share, which aims to aggregate and share the professional expertise of our employees by bringing together the different knowledge sharing initiatives that we have: Sierra Internal Learning focuses on developing the behavioural and technical capabilities of Sonae Sierra employees through training events that last a day or longer. Examples include Motive for Action, which aims to build the skills of our employees to help them adapt and respond to challenging market and economic conditions, and SIGHT, which is designed for our property management business area and involves training employees on the strategy levers for a company like Sonae Sierra. This enables our staff to better understand the factors which influence the value chain as a whole for our tenants and thereby better anticipate tenants needs. Sierra Shots typically last one to two hours and are opportunities for employees to share insights that are deemed relevant and useful with their colleagues. In 2013 we organised Sierra Shots on topics such as continuous improvement, property valuations, public art, sustainability, leadership and retail trends in Morocco. HR Knowledge Pills training sessions which focus on specific HR issues (e.g. information on legal requirements and Sonae Sierra HR procedures). And in Brazil: The Superintendent Trainee project, developed three years ago by our property management department. We are currently enhancing the content of this project to include people management and a more active supervision of the trainees development. It will officially be relaunched in The Educational Subsidiary programme which helps our employees to get a degree and also improves their chances of career development. Across the firm as a whole we operate an Integration Programme for new employees and have continued to roll out BEST (Behaviour with Ethics Sierra Training) to increase knowledge of our Code of Conduct and raise awareness of the different types of corruption employees may be confronted with. In the past we have also invested in external training programmes, but we have found that these internal training programmes better meet the specific needs of our organisation. Specific Actions Career Development The Sonae Academy for Management and Leadership aims to create a Group-wide learning solution for all Sonae Sierra companies across all businesses areas and geographies by: Developing a unique learning model. Supporting career development. Reinforcing the alignment between our employees and Sonae Sierra s business strategy and culture. Supporting internal mobility (between geographies and companies). The Academy programme has been developed together with external business schools, and the courses are held in those schools. There is a curriculum based on theoretical career progression, designed for people of different levels of seniority who we have identified, based on annual performance appraisals, as having management and leadership potential. Specific Actions Leveraging Knowledge Leveraging Knowledge is one of our long-term sustainability priorities and through this we aim to empower our employees by building their skills and knowledge, unleashing their potential on an individual basis and raising the standard of education at a collective level in the communities where we operate. We are exploring how we can transfer know-how in the company while supporting education in our communities. We aim to set specific actions in the year ahead and are exploring a number of opportunities including working with outside organisations such as universities.

116 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.115 < > LABOUR PRACTICES AND DECENT WORK ASPECTS (CONTINuED) Disclosures on Management Approach (continued) c) Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring On an individual level, all our employees receive annual performance and career development reviews. On a collective level, we monitor employee satisfaction once every two years through our Corporate Climate and Employee Satisfaction Survey, which asks our employees to rate their satisfaction with a range of factors including training and development. Results and Adjustments Proportion of training undertaken by type. In addition to GRI indicators G4-LA9 and G4-LA11 below, we record the number of hours and proportion of training undertaken by type. In 2013, just under three quarters of all training was devoted to building up our employees technical capabilities. Proportion of total Type of training Number of hours training hours (%) Technical 27,122 74% Behavioural 924 2% Languages 8,761 24% Total 36, % Data Qualifying Note: Includes all Sonae Sierra direct employees at the end of the reporting period. Investment in staff training and development. In 2013, we invested 483 per capita in staff training and development, a 3% decrease from Despite the lower amount, we succeeded in providing employees with an average 32.2 hours of internal and external training during the course of the year. For more information, see G4-LA9. Investment in staff training and development ( per capita) Data Qualifying Note: This includes all Sonae Sierra direct employees and the cost of training and development provided during the reporting period. It is calculated using the following formula: investments in employee training and development in each country/number of direct employees in each country (G4.10). In Europe, we were not able to sustain the level of investment in external employee training due to cuts in the HR budget in the context of ongoing austerity measures in the main countries where we operate. Nonetheless, we continued to work on our action plan for high potential employees and to push hard for training for these employees through the Sonae Academy described on page 114. In Brazil, 168 employees took part in our Educational Subsidiary Programme. We granted a total of 57 promotions; 38 in shopping centre operations and 19 for job functions based at our head office. Our biggest challenge concerning employee development is to educate leaders on how to evaluate their teams effectively using Sonae Sierra s corporate tool (IOP Performance and Potential Appraisal) and how to provide appropriate feedback. Another challenge which we faced in 2013 was related to our entry into emerging markets where we need to train employees quickly in order to understand the retail industry potential there. As international companies move into these markets, there is high demand for experienced employees and the turnover rate for successful recruits is high. It is therefore important for us to work on a fast integration and training programme for new employees in these markets so that they are quickly able to deliver their work.

117 ANNEX: GLOBAL REPORTING INITIATIVE SONAE SIERRA 2013 Economic, Environmental and Social Report.116 < > LABOUR PRACTICES AND DECENT WORK ASPECTS (CONTINUED) Disclosures on Management Approach (continued) Communication and training on anti-corruption policies and procedures. In 2013, 85% of employees in Europe, Brazil and North Africa completed training on our anti-corruption policies and procedures. This means that, combined with training already conducted in 2012, we completed our two-year goal for all employees to receive this training. Turkey was not included in this goal because Sonae Sierra only entered the Turkish market in November Country Percentage of employees and Board Members that received anti-corruption training by country Portugal 99% Spain 96% Italy 94% Germany 91% Greece 100% Romania 100% The Netherlands 100% Algeria 79% Morocco 0% Turkey 0% Brazil 71% Global percentage 85% There is an internal procedure of sending an to every employee containing a welcome message, including in attachment the Code of Conduct of Sonae Sierra, called Welcome kit. This "Welcome Kit" is also available on the intranet of Sonae Sierra, to be consulted by every employee who wants to access it. So it's assumed that it is communicated to all new employees admitted in the organization, its anti-corruption policies and procedures. As the new GRI guidelines were issued in mid-year 2013, Sonae Sierra didn't had sufficient time to organise the process that would allow us to communicate, measure and report the number of business partners to whom the organisation's anti-corruption policies and procedures would be communicated, until the end of Performance Indicators Indicator G4-LA9 Average hours of training per year per employee by gender, and by employee category. Average hours of training per employee by Employee Category Number of employees Number of hours employee category Global Senior Executive, Senior Executive, Executive Senior Manager 63 2, Manager 94 3, Team Leader 150 3, Project Team Specialist 173 5, Team Member/Team Contributor , Total 1,144 36, Average hours of training Gender Number of employees Number of hours by gender Female , Male , Total 1,144 36, Data Qualifying Note: This indicator includes all Sonae Sierra direct employees at the end of the reporting period. To obtain the average number of hours per employee (AHE), by employee category, the following formula was applied: AHE (by employee category) = total hours of training per employee category, divided by total employees per employee category. To obtain the average hours of training per gender (AHG), the following formula was applied: AHG = total number of hours by gender, divided by total number of employees by gender.

118 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.117 < > labour practices and decent WorK aspects (CONTINuED) performance indicators (continued) Indicator g4-la11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category. Female Male Number of employees receiving regular performance and career development reviews Percentage of employees receiving regular performance and career development reviews 100% 100% Employee category Female Male Total Global Senior Executive, Senior Executive and Executive Senior Manager Manager Team Leader Project/Team Specialist Team Member/Team Contributor total ,059 data Qualifying note: This includes all Sonae Sierra direct employees (i.e. employees on Sonae Sierra s payroll) at the end of the reporting period that have a contract established for at least six consecutive months with Sonae Sierra. This is an eligibility condition to enter the annual evaluation programme.

119 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.118 < > labour practices and decent WorK aspects (CONTINuED) ASPECT: diversity and EQual opportunity and EQual remuneration For men and WomEn disclosures on management approach a) report the impacts that make this aspect material Companies where unfair treatment is present are at risk from law-suits and fines for discrimination and are more likely to experience high-levels of staff turnover, absence and poor team work. On the contrary, by applying the principles of equality and diversity and ensuring a meritocratic culture, companies can attract a wider range of potential candidates, increase levels of employee satisfaction, retention and collaboration and prepare for emerging regulations concerning gender equality and non-discrimination. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62. b) report how the organisation manages the material aspects or its impacts. With respect to Equal remuneration, describe the legal and socio-economic environment that provides opportunities for, and barriers to, gender equity in the workforce. this may include women s workforce participation rates, their participation at highest governance level, and equal remuneration Policies and Commitments We have a non-discrimination and diversity policy that states our commitment to a meritocracy culture. This is reinforced by our Code of Conduct, which outlines our commitment to creating a workplace where each individual is treated fairly, and where we recruit, select, train and remunerate based on merit, experience and other professional criteria. Further references: Click here to read our Code of Conduct, which is available on our corporate website. until now, our Company has not encountered barriers to gender equality in the workforce in the core countries where we operate. However, we acknowledge that this could become a more significant issue as we move into new markets, such as North Africa, where the socioeconomic environment may inhibit equal opportunities in terms of education and by extension access to employment. In Sonae Sierra Brasil, gender equality has not been an issue, although the number of men in managerial positions is higher. Technical and management skills have been considered relevant to take these positions, not gender, and this has been acknowledged internally. Goals and Targets As stated above, Sonae Sierra has a commitment to a meritocracy culture, although we do not set specific quantitative objectives or targets relating to this aspect. Responsibilities and Resources Responsibilities and resources for employment aspects, including diversity and equal opportunity and equal remuneration, are described under the Disclosure on Management Approach for Training end Education on page 113. Specific Actions We have some policies in place which, among other objectives, can support diversity by promoting a more flexible workplace, namely: Part-Time Working Policy. Working From Home Policy. Flexible Work Schedule Policy. Within the framework of these policies, we have made particular efforts over the past couple of years to introduce more flexible work arrangements for employees whose job function enables them to take up these options. In Brazil specifically, in 2013 we implemented salary readjustments in accordance with collective labour conventions. The HR department has worked consistently with line managers to help them to better understand the most important labour laws which have an impact on the daily management of employees.

120 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.119 < > labour practices and decent WorK aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring Sonae Sierra demonstrates its commitment to non-discrimination in recruitment and treatment of staff in the workplace by monitoring workforce diversity according to a range of different characteristics. Within our Code of Conduct, we pledge to treat each individual fairly and recruit, select and train and remunerate based on merit, experience and other professional criteria. It is in our interest to ensure that the human resources, talents and skills available throughout the community are considered when employment opportunities arise, thereby selecting the most suitable person for the job, based on their qualifications and experience. We monitor employee satisfaction once every two years through our Corporate Climate and Employee Satisfaction Survey, which asks our employees to rate their satisfaction with a range of factors including equal opportunities and compensation. The Sierra Ombudsman, which is described on page 121, constitutes a formal procedure which employees (as well as other stakeholders) can use to report work-related concerns including any breaches in our Code of Conduct. Results and Adjustments We achieved an Equal Opportunities and Diversity Rate of 61% in our 2013 Corporate Climate Survey. This is our highest ever score for this measure and indicates that 61% of employees feel that our Company respects equal opportunities and diversity. See also GRI indicators G4-LA12 and G4-LA13. performance indicators Indicator g4-la12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. number and percentage of employees by gender, per employee category Female Male Total Global Senior Executive, Senior Executive and Executive Senior Manager Manager Team Leader Project Team Specialist Team Member/Team Contributor total ,144 percentage (%) 51% 49% 100% number of disabled employees, per employee category Disabled people Female Male Total Senior Manager 3 3 Team Leader Project Team Specialist 1 1 Team Member/Team Contributor 4 4 total

121 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.120 < > labour practices and decent WorK aspects (CONTINuED) performance indicators (continued) Indicator g4-la12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. (continued) number and percentage of employees by age group, per employee category < >64 Female Male Female Male Female Male Female Male Female Male Global Senior Executive, Senior Executive and Executive Senior Manager Manager Team Leader Project Team Specialist Team Member/Team Contributor total ,144 Percentage (%) 22.0% 17.0% 20.2% 19.1% 6.9% 9.7% 1.0% 3.4% 0.3% 0.2% 100% data Qualifying note: This indicator includes all Sonae Sierra direct employees at the end of the reporting period. The last category has two different designations: Team Member and Team Contributor. Team Contributor will be a new designation in 2014, but has already been adopted by Brazil in g4-la13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. Remuneration Ratio (%) Global Senior Executive, Senior Executive and Executive 103 Senior Manager 98 Manager 80 Team Leader 95 Project/Team Specialist 92 Team Member/Team Contributor 137 Basic Salary Ratio (%) Global Senior Executive, Senior Executive and Executive 93 Senior Manager 96 Manager 80 Team Leader 95 Project/Team Specialist 92 Team Member/Team Contributor 133 data Qualifying note: This indicator includes all Sonae Sierra direct employees at the end of the reporting period. Both ratios are calculated by dividing the total remuneration received by men and by women in each employee category by the total number of employees in that category. The average female salary is then divided by the average male salary in order to generate a ratio. The remuneration ratio includes the annual basic salary plus the variable remuneration received by employees. In the case of Sonae Sierra, variable remuneration represents the bonuses fraction, which is considered to be most significant (over 90% of the total benefits received by the employees). The basic salary ratio considers only the annual basic salary received by direct employees.

122 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.121 < > labour practices and decent WorK aspects (CONTINuED) ASPECT: labour practices grievance mechanisms disclosures on management approach a) report the impacts that make this aspect material Effective grievance mechanisms play an important role in remediating impacts that may be material stakeholders. Therefore, we consider it cautious to consider this to be a material impact within the scope of our reporting on our social performance. b) report how the organisation manages the material aspect or its impacts. describe the availability and accessibility of grievance mechanisms and remediation processes for impacts on labour practices, including along the organisation s supply chain, and the involvement of stakeholders in monitoring their effectiveness Policies and Commitments Within the scope of our Code of Conduct, we are committed to respecting the dignity and rights of each individual and to upholding strict compliance with the law. As a business, we are also committed to being open to and responding to feedback received from our stakeholders, including complaints brought against our organisation. Goals and Targets We do not set specific objectives and targets in relation to Labour Practices Grievance Mechanisms. Responsibilities and Resources The Sierra Ombudsman promotes compliance with our Code of Conduct and encourages behaviour aligned with our ethical principles. The Ombudsman is an independent facilitator to whom all stakeholders can present their complaints with an assurance that they will be processed, investigated, and responded to in a timely and sensitive manner. We conduct regular training on our Code of Conduct that is mandatory for all our employees. Specifically with respect to labour practices, we act in accordance with local labour laws in all countries where we operate. According to our HR procedures, grievances should be addressed to line managers, directors and/or the HR department. Employees can also contact the Ombudsman directly if they prefer. Specific Actions Not applicable. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The Sierra Ombudsman, described above, constitutes a formal procedure which employees (as well as other stakeholders) can use to report work-related concerns including any breaches in our Code of Conduct. Results and Adjustments See GRI indicator G4-LA16. performance indicators Indicator g4-la16 Number of grievances about labour practices filed, addressed, and resolved through formal grievance mechanisms. No grievances related to labour practices were registered within the Company during 2013.

123 annex: global reporting initiative.122 SONAE SIERRA 2013 Economic, Environmental and Social Report < > SociEty aspects valecenter, Italy le terrazze, Italy ASPECT: local communities disclosures on management approach a) report the impacts that make this aspect material Attending to the needs and views of the local community is particularly important for shopping centre developers and operators. Shopping centre developers which do not build relationships with local communities or assess community needs risk having their planning applications blocked and their license to operate thwarted; on the other hand, shopping centres which build strong relationships with local community stakeholders and effectively listen to community concerns are more likely to maintain high levels of footfall and commercial activity. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts. describe references and statements regarding the collective rights of local communities; how both women and men are engaged in local communities and how work councils, occupational health and safety committees or other independent employee representation bodies are empowered to deal with, and have dealt with, impacts on local communities Policies and Commitments Our policy towards the community is based on values and principles such as Environmental Awareness; Community Involvement; Openness to Society, Confidence and Ethics. Our Corporate Responsibility (CR) Policy states our commitment to play an active role in changing society through education and awareness-raising campaigns, and by capitalising on our ability to communicate with the public who visit our shopping centres. Our Public Art Policy (introduced in 2013) promotes the use of public art in our shopping centres. The aim is to strengthen our shopping centres relationships with the local community, while at the same improving the visitor experience, encouraging their interaction and contributing to improved public space. Further references: Click here to read our CR and Public Art Policies, which are available on our corporate website.

124 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.123 < > SociEty aspects (CONTINuED) disclosures on management approach (continued) Goals and Targets Our Business model and strategy, page 14. Responsibilities and Resources ultimate responsibility for community aspects lies with Sonae Sierra s CEO and the Executive Committee. During the shopping centre development phase, the Country Marketing Manager is responsible for all issues concerning public relations and community activation marketing programmes; all other local community issues are managed by the Development Project Manager. Guidelines and a macro Activity Plan are approved by the Board Members of the Company responsible for the project. Operational responsibility for local communities and visitor satisfaction aspects during the shopping centre operations phase lies with our Shopping Centre Managers, supported by the central Marketing Department. We dedicate at least two per cent (1 per cent in Brazil) of each of our shopping centres marketing budget to local community investment, and we deploy several people within the marketing team to focus specifically on this aspect as a part of their job function, including the Corporate Marketing Managers (Europe and Brazil) for CR issues, Country Marketing Managers, Cluster Managers and Marketing Assistants in each shopping centre. All Sonae Sierra employees are entitled to take one day s leave as a volunteering day, and most use this opportunity to participate in the annual Sonae Sierra Community Day, which is held across all countries where we operate. Shopping centres organise a variety of events from supporting local charities to organising school and higher education visits. Specific Actions Supporting local businesses We are committed to providing attractive shopping centres that serve the needs of the local population. We seek to generate economic benefits for local communities by creating local employment, inviting local businesses to rent space in our shopping centres and investing in initiatives that improve the well-being of local people. In 2013, on average 32% of tenants across our European portfolio and 24% of tenants across our Brazilian portfolio were local businesses. As well as benefiting the community, this strategy can also help us enhance our reputation and increase visitor numbers. Specific Actions Community Advisory Panels We operate a Community Advisory Panels (CAPs) programme to make sure that local communities are consulted on, and involved in, the development and operation of our shopping centres in a way that creates long-term relationships and is sensitive to local cultural considerations. In order to select CAP members, we identify local stakeholder groups and invite them to participate based on the issues that are relevant to them. Our local shopping centre teams are empowered to develop actions in response to issues raised through the CAPs, using the part of the shopping centre marketing budget which is available for community projects. Both men and women are involved in the CAPs and there is no differentiation made in terms of the gender of CAP members. Specific Actions Sustainable Lifestyles Sustainable Lifestyles is one of our long-term sustainability priorities and this involves using our reach and public influence to encourage our visitors to make healthier and more eco-friendly choices. Our plans for Sustainable Lifestyles are at an early stage of development. We are exploring how we can implement our strategy at a practical level to promote more sustainable lifestyles, promoting the consumption of products and services that are green, ethical and/or healthy. We have made solid progress communicating our own sustainability achievements to shopping centre visitors and in 2013, we began to tackle consumer behaviour in our shopping centres. Over the next couple of years our marketing team will focus on influencing consumers behaviour in and outside of our shopping centres. For more information: See our website. GRI G3.1 CRESS Specific Actions Displacement and relocation of local communities Apart from GaiaShopping in Portugal, which was completed in 1989, none of our projects have ever involved the displacement of local community members. In the case of GaiaShopping, we constructed new houses in order to resettle the people who used to live in the area.

125 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.124 < > SociEty aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring During the development stage we carry out feasibility studies to identify consumers needs in retail, services and leisure activities, in order to design shopping centres that match market needs and the existing retail offer. These studies consider factors such as demographics within the catchment area and socio-economic indicators. In Europe, we carry out annual community ( Geo Tracking ) surveys to help us understand the impact of our shopping centres on local consumer habits. These studies assess among other things the degree and quality of the existing commercial supply and the shopping facilities used by local residents. Information is collected through telephone interviews and structured questionnaires, and results are used to define the centre s marketing strategy to ensure that it is tailored to the catchment area. Geo Tracking surveys also include questions about social and environmental aspects of our shopping centres. Our CAPs, described on page 123 above, also enable us to obtain useful feedback from local community representatives and in this way monitor and respond to our impacts on local communities. Results and Adjustments For information about how we promoted local businesses and sustainable lifestyles in 2013, see Our performance, pages 25 to 35. In 2013, our employees dedicated a total of 3,160 hours of time to community volunteering. Our total global marketing investments in Corporate Responsibility and other community contributions equalled million. This included: 108,417 in corporate donations to charitable causes and sponsorships. 889,749 in investments in charitable causes and specific activities, events and campaigns with social responsibility themes, made through our shopping centres marketing budgets. 59,831 in shopping centre-level community investment in cash (which includes donations of 54,118 collected from shopping centres visitors on behalf of charitable causes). 42,836 in shopping centre-level sponsorships. 15,000 in investments in charitable causes and specific activities, events and campaigns with social responsibility themes, made through the marketing budgets of our projects under development. We also collected 14,337kg of food contributions and 3,134 other items such as clothing and books from shopping centre visitors. Additionally, we welcomed 143 school and higher education institution visits to our shopping centres, which involved educating children about environmental, safety and health and cultural issues linked to our sustainability activities, as well as more technical visits for older students. global marketing investments in cr and other community contributions ( million) number of hours spent by employees in charity organisations , , , , ,001 data Qualifying note: This indicator includes all Sonae Sierra direct employees at the end of the reporting period. The number of volunteer hours made available by Sonae Sierra for volunteering activities during work time is eight hours. The number of hours spent by employees in charity organisations is the sum of all hours spent by employees who volunteered. In 2013 we continued to operate our CAPs programme, but found it challenging to maintain momentum in some locations as not all local communities are keen to participate in CAP meetings. We do however, continue to promote these meetings and mandate two meetings a year.

126 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.125 < > SociEty aspects (CONTINuED) performance indicators Indicator g4-so1 Percentage of operations with implemented local community engagement, impact assessments, and development programmes. On 31 December 2013, Sonae Sierra owned 47 shopping centres and had six projects under development, including four on behalf of clients. We have one significant local community engagement programme in place, our Community Advisory Panels (CAPs), which are described on page 123 above and are in place across 17 (36%) of our operational shopping centres and one project under development. Environmental Impact Studies (EIS) or Preliminary Environmental Evaluations (PEE) are carried out on 100% of new development projects and on major expansions. They include specifications such as the identification of locations of historical, architectural and archaeological value and data on important socio-economic indicators within the study area. When we begin new projects, we perform a feasibility analysis which involves analysing the competition and impact of our activities on competitors performance. Our Geo Tracking studies evaluate the impact of our shopping centres on local consumer habits on an annual basis. In 2013, Geo Tracking studies were performed at 37 (74%) of our shopping centres 20. Aside from these, we do not have any local community impact assessment programmes in place across our portfolio. We have community education projects in place at Shopping Metrópole in Brazil, but these are the only local community development projects in place across our portfolio. However, during the commercial licensing phase of new shopping centre projects, we are obliged to comply with the planning obligations defined in each country and by each local authority. For example, in some locations we must set aside part of the site for the creation of green spaces and, if this is not possible on the site in question, we must pay a compensatory fee so that green spaces can be created in alternative areas. The development of transport infrastructure around new shopping centre sites (including roads, bicycle paths and parking spaces, footpaths, etc.) is another example of infrastructure developed for community benefit, in some instances to meet with mandatory requirements of local authorities and in others to meet with our own Safety, Health and Environment Development Standards (e.g., regarding the promotion of sustainable travel). Many of our shopping centres also offer play areas for children, crèche services, sports and waste recycling facilities which are available for the local community. 20 This includes Parque Principado which was sold in October 2013.

127 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.126 < > SociEty aspects (CONTINuED) ASPECT: public policy disclosures on management approach a) report the impacts that make this aspect material Government was not represented in the stakeholder feedback reviewed as part of our 2013 Materiality Review. Nonetheless, Sonae Sierra undertakes lobbying activities under its own initiative and through industry organisations targeting local, national and regional government. We engage with local municipalities and meet with government members to discuss issues related to shopping centre activities that can have a significant impact on our business activities, from planning regulations to infrastructure development and trading hours. For this reason, this aspect was deemed to be material to our business. b) report how the organisation manages the material aspect or its impacts. describe the significant issues that are the focus of the organisation s participation in public policy development and lobbying. provide the organisation s core position for each of the identified issues, and describe any significant differences between lobbying positions and stated policies, sustainability goals, or other public positions Policies and Commitments We do not have a specific policy covering Public Policy. Our approach is underpinned by our values which represent the principles through which we set all our activities and relationships with our partners. Furthermore, our Code of Conduct sets out our ethical principles which include strict compliance with the law and acting with honesty and integrity in all we do. Specifically, this includes our commitment to political neutrality. Further references: Click here to read our Code of Conduct, which is available on our corporate website. Goals and Targets We do not set specific objectives and targets in relation to Public Policy. Responsibilities and Resources Interaction with local authorities is primarily dealt with at a local level by national development managers. The exception is Portugal where we do not currently have a development pipeline. In this instance, national and international activities at the Eu level fall under the responsibility of our Institutional Relations Manager who is part of the Asset Management business.

128 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.127 < > SociEty aspects (CONTINuED) disclosures on management approach (continued) Specific Actions Significant issues that are the focus of public policy development and core position We participate in lobbying activities under our own initiatives with local authorities and national governments covering issues such as: Working with the local municipality to include the expansion of RioSul Shopping as part of the broader Seixal Master Plan redevelopment in Portugal. Contributing to a public consultation over changes to the Maia Advertising and Public Domain Municipal Regulation also in Portugal. We also provided feedback on two pieces of draft legislation at a national level in The first was in response to a draft licensing legislation that could affect our tenants. We argued that it should be transparent and applied consistently across municipalities to reduce compliance costs and uncertainty. The second was in response to proposed legislation relating to the approval of new shopping centres and the expansion of existing ones. Again, we argued for transparency concerning the criteria used to judge whether approval should be granted. We also support or are involved in defining policy positions led by industry organisations, including the European Property Federation s (EPF) responses to a range of European union-level Directives and legislative initiatives, such as: The 2030 Framework for Climate and Energy Policies: responses to the Green Paper were prepared and sent to the Commission. The Anti-Money Laundering Directive: recommendations were prepared in response to the Directive covering real estate agents, including the exclusion of shopping centre companies from its scope. Environmental Impact Assessment Directive: recommendations were prepared in response to the Draft Amendments. The European Retail Action Plan: a response to the draft report was prepared and sent to the European Parliament supporting shop diversity by removing barriers to free movement and opening up markets. Energy Efficiency Directive: we presented to the European Commission as part of discussions covering the Voluntary Common Eu Certification Scheme for the Energy Performance of Non-residential Buildings. The Eu Economic Governance Planning Law Reform Committee: Sonae Sierra prepared a paper outlining constraints in the Portuguese planning system as part of the EPF s response to the Commission. The EPF also participated in a public consultation on issues including sustainable buildings, arguing for greater consolidation and comparison of existing energy performance requirements before expanding requirements to broader sustainability requirements. In 2013, we also participated in a public consultation on the new European union occupational safety and health policy framework. We agreed with the proposed strategy and voiced our support for coordination to remain at Eu level to ensure its consistent application across our European markets. In Brazil, we are supporting ABRASCE (Brazilian Council of Shopping Centres) to challenge a law that requires shopping centres to employ a full time on-site doctor or nurse. We are not against the principle that full-time medical care should be available to shopping centre users, our view is that the responsibility and associated costs for providing such care should rest with governmental authorities as the provision of medical care falls outside our core business activities. Specific Actions Significant differences between lobbying positions and stated policies, sustainability goals, or other public positions Sonae Sierra supports political endeavours to encourage greater social cohesion and environmental responsibility in line with our business and sustainability strategies, although we resist changes in legislation that are likely to significantly and adversely affect our business. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring Lobbying activities are recorded and monitored according to the roles and responsibilities outlined above. All our activities are governed by our Code of Conduct and any breaches of the Code can be reported to the Sierra Ombudsman which is described on page 121. Results and Adjustments See Specific Actions Significant issues that are the focus of public policy development and core position above. performance indicators Indicator g4-so6 Total value of political contributions by country and recipient/beneficiary. No financial and in-kind contributions were made by Sonae Sierra to political parties, politicians, and related institutions in data Qualifying note: Includes all Sonae Sierra activities.

129 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.128 < > SociEty aspects (CONTINuED) ASPECTS: anti-competitive behaviour and compliance disclosures on management approach a) report the impacts that make this aspect material Our Code of Conduct iterates our commitments to act with honesty and integrity and in strict compliance with the law. It is therefore essential that we guarantee compliance, as a very minimum, with all social legislation applicable to our business activities. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Sonae Sierra s Code of Conduct promotes the fundamental aspects of ethical behaviour that Sonae Sierra s Board believes should be adopted in Company business and activities, and lists the Ethical Principles that include the duties of strict compliance with the Law and acting with honesty and integrity. The Code of Conduct includes one specific guideline on the avoidance of Bribery and Corruption, by stating that it is forbidden to give or accept any reward or benefit with the purpose of influencing someone s behaviour to obtain a commercial advantage. The Code also promotes ethical and responsible decision-making by providing guidance on dealing with issues such as bribery, corruption, legal compliance, equality and human rights. Goals and Targets Not applicable. Responsibilities and Resources Whilst the Executive Committee is ultimately responsible for managing these issues, ethical conduct is a personal responsibility and every employee is held accountable for his or her behaviour. Specific Actions Ethics Training Regular ethics training is mandatory for all our employees. In 2013, we continued to roll out the BEST training programme (Behaviour with Ethics Sierra Training) for Sonae Sierra employees, including those based in new markets which we entered. The BEST training content is based on our Code of Conduct and Anti-Corruption Guidelines. Participation was compulsory and at the end of each session, employees were required to sign and return the Sonae Sierra Code of Conduct Acknowledgement, confirming that they had received the Code of Conduct and agreed to comply with its provisions. GRI G3.1 CRESS Specific Actions Real Estate Valuations and Transactions In relation to specific policies and practices followed by Sonae Sierra to mitigate corruption risk with respect to real estate valuations and transactions, our Asset Management and Development businesses follow the RICS guidelines. Transactions are subject to approval by the Board of Directors of the Special Purpose Vehicles (SPVs), the Board of Directors of Sonae Sierra and (in many cases) by the Investment Companies of the funds. Whilst there are no specific guidelines to mitigate risks with respect to valuations, the entity that carries out most valuations for Sonae Sierra indicates in its report that the fees collected from Sonae Sierra represent less than 5% of its revenue, on a global basis. Within the context of our Property Management activities, the procedure of getting bids for the services we contract out to suppliers minimises the risk of anti-competitive behaviour in the supply chain. Taking into consideration the strong involvement of several corporate organisational structures related to this process (shopping centre management and central operation departments), this procedure also ensures a clear, coherent and accepted recommendation, thus supporting the final award decision.

130 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.129 < > SociEty aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The Sierra Ombudsman promotes compliance with our Code of Conduct and encourages behaviour aligned with our ethical principles. The Ombudsman is an independent facilitator to whom all stakeholders can present their complaints with an assurance that they will be processed, investigated, and responded to in a timely and sensitive manner. We ensure that compliance with the avoidance of Bribery and Corruption is upheld by incorporating corruption risk into the annual Internal Audit plan of activities, which is aligned with the Sonae Sierra Risk Matrix through the audit work carried out by business process areas. Results and Adjustments Our Code of Conduct states that is forbidden to give or accept any reward (or benefit ) with the purpose of influencing someone s behaviour to obtain a commercial advantage. We ensure compliance with this obligation by incorporating corruption risk into the annual Internal Audit Plan of activities, which is aligned with Sonae Sierra s Risk Matrix through the audit work carried out by business process areas. During 2013, the Internal Audit Activities covered all the core business risks included in the Risk Matrix and 54% of the corresponding business processes. The Anti-Corruption Guidelines have enabled the development of anti-corruption awareness through the provision of staff training, carried out under the BEST (Behaviour with Ethics Sierra Training) programme. No incidents of corruption were registered within the Company during See also GRI indicators G4-SO7 and G4-SO8 below. performance indicators Indicator g4-so7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes. There were no legal actions for anti-competitive behaviour, anti-trust, and monopoly practices during g4-so8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Country Significant fines paid ( ) Portugal 10,140 Spain 1,088 Italy 22,330 total 33,558 data Qualifying note: This indicator includes all Sonae Sierra activities. We did not receive any nonmonetary sanctions and there were no cases brought through dispute mechanisms. There are two pending cases, one in Greece and other in Italy that occurred in previous years and are still waiting for a court decision.

131 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.130 < > SociEty aspects (CONTINuED) ASPECT: grievance mechanisms For impacts on SociEty disclosures on management approach a) report the impacts that make this aspect material Effective grievance mechanisms play an important role in remediating impacts that may be material to stakeholders. Therefore, we consider it cautious to consider this to be a material impact within the scope of our reporting on our social performance. b) report how the organisation manages the material aspect or its impacts. describe the availability and accessibility of grievance mechanisms and remediation processes for impacts on society, including along the organisation s supply chain, and the involvement of stakeholders in monitoring their effectiveness Policies and Commitments Within the scope of our Code of Conduct, we are committed to respecting the dignity and rights of each individual and to upholding strict compliance with the law. As a business, we are also committed to being open to and responding to feedback received from our stakeholders, including complaints brought against our organisation. Goals and Targets We do not set specific objectives and targets in relation to Grievance Mechanisms for Impacts on Society. Responsibilities and Resources The Sierra Ombudsman, described on page 121, constitutes a formal grievance mechanism to which all stakeholders may present complaints of any kind with an assurance that they will be processed, investigated, and responded to in a timely and sensitive manner. Specific Actions Not applicable. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring We monitor complaints made through the Sierra Ombudsman, according to type of complaint as well as a range of other factors such as location and final resolution. Results and Adjustments See GRI indicator G4-SO11 below. performance indicators Indicator g4-so11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms. Total number Cases not of grievances closed Country addressed in 2013 in 2013 Portugal 1, Spain Italy 103 Germany 158 Brazil 1,586 3 total 3, data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period and all corporate offices with a SHEMS (Lisbon, Maia and São Paulo). Sonae Sierra has two different channels for grievance management: The Customer Contact Management System is a claims system that exists in shopping centres owned by Sonae Sierra and receives claims mainly from shopping centres users (including visitors, tenants, suppliers and others). The Ombudsman receives claims from any stakeholder who wants to register a complaint with Sonae Sierra. The claims received through this channel are addressed and solved directly by the Ombudsman. The values presented in the table refer to the Customer Contact Management System results. For information on complaints received by the Ombudsman, please see page 66. As this is the first time we have reported this indicator, we are not able to provide reliable data about the total number of grievances filed prior to the reporting period and that were resolved during the reporting period (as required by GRI G4).

132 ANNEX: GLOBAL REPORTING INITIATIVE.131 SONAE SIERRA 2013 Economic, Environmental and Social Report < > PRODUCT RESPONSIBILITY ASPECTS Boulevard Londrina, Brazil ASPECT: CUSTOMER HEALTH AND SAFETY Disclosures on Management Approach a) Report the impacts that make this Aspect material Accidents occurring in shopping centres could put large numbers of people at risk, incur loss of business and damage our assets and reputation. By anticipating and managing S&H risks appropriately and raising awareness about S&H among shopping centre staff, tenants, service suppliers and visitors, we can reduce the risk of accidents occurring and the severity of their consequences, add value to our property management service and strengthen our relationships with these key stakeholder groups. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) Report how the organisation manages the material Aspect or its impacts. In each of the following life cycle stages, describe whether the health and safety impacts of products and services are assessed for improvement: Development of product concept; Research and development; Certification; Manufacturing and production; Marketing and promotion; Storage distribution and supply; Use and service and Disposal, reuse, or recycling Policies and Commitments Our Safety, Health and Environment Policy establishes our responsibility to conduct our activities so that risks towards people, assets and ecosystems are minimised, and benefits enhanced. Further references: Click here to read our Safety, Health and Environment Policy, which is available on our corporate website. Goals and Targets We have set a long-term objective to provide a safe environment for everyone who visits or works within Sonae Sierra shopping centres, aiming towards zero accidents, and promote safety and health conscious behaviour among our tenants and visitors. Responsibilities and Resources See the Disclosure on Management Approach for Occupational Health and Safety on page 105 above.

133 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.132 < > product responsibility aspects (CONTINuED) disclosures on management approach (continued) Specific Actions Addressing health and safety impacts throughout the shopping centre lifecycle Our Safety, Health and Environment Development Standards (SHEDS) are considered by all design teams during the concept and architectural development phase of all our new shopping centres, refurbishment or expansion projects and minor works. For further information, see Governance, Safety, Health and Environment Management System, pages 47 to 48. During the construction phase, we aim to achieve excellent safety standards by defining strict procedures that exceed those which are required by law. All new shopping centre development projects must implement a site-specific Safety, Health and Environment Management System (SHEMS) and achieve certification in accordance with the OHSAS standard for the entire construction phase. For further information, see page 19. During the operations phase, all Sonae Sierra shopping centres implement the procedures defined by our corporate SHEMS with the aim of guaranteeing the safety of all building users. We provide training on Safety, Health and Environment (SHE) issues and invite tenants to actively participate in Open SHE Committees during which S&H issues are discussed and tenants are asked to actively participate in the shopping centres SHE management. Any issues identified by these procedures are followed-up and corrective actions are taken. Within the scope of our SHEMS, we monitor tenants compliance with our SHE requirements for shopping centres by performing inspections on tenant units and following-up on any non-conformances detected. We monitor and evaluate S&H performance on a regular basis using tools such as SHE Preventive Observations (SPO), emergency drills and SHE inspections (covering safety-related equipment and installations in tenant units and technical areas). SPO are a form of audit carried out in our shopping centres and corporate offices to observe workers, detect any instances of behaviours that present safety and health risks or environmental impacts and engage with the person(s) involved to make them more aware of SHE risks. We also invite tenants to compete for our Best Tenant Awards; the Personæ Tenant Award for best practice in S&H and the Planet Sierra Tenant Award for best practice in environmental management. Each of these Awards is presented bi-annually, meaning that each year there is one competition, focused either on environment or S&H performance. Specific Actions Addressing health and safety risks for visitors We regularly monitor visitor safety risks and organise awareness campaigns to promote safe behaviour in our shopping centres. Examples include Safety and Health Days, school visits and shopping centre tours. The majority of incidents involving visitors include falls at the same level, playground and escalator accidents. In 2013, a study at LeiriaShopping in Portugal into the causes of visitor slips identified several high risk areas. As a result, we are piloting a range of anti-slip solutions prior to a broader rollout across our portfolio. The findings will also be presented to our architectural department for consideration in future developments. To tackle playground accidents, the Sustainability Office has evaluated all playground proposals since 2013 to identify potential safety hazards. New standards that incorporate the findings of this review will be developed in 2014 for future playground projects. A similar study into the most common types of accidents on escalators was also conducted by the Sustainability Office and the findings have been developed into an action plan due to be rolled out from This follows a communications campaign across Portugal and Spain in 2012 to raise awareness of the most common safety risks posed by escalators and travelators. Continuous monitoring of new and emerging risks ensures we can put in place the necessary preventative measures either by working directly with escalator manufactures or by updating our SHEDS. Finally, we have invested heavily in new sensors for our automatic entrance doors following a visitor fatality in c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring See the Disclosure on Management Approach for Environmental Aspect Overall on page 74. Results and Adjustments See the Disclosure on Management Approach for Occupational Health and Safety on page 105. See also GRI indicators G4-PR1 and G4-PR2 below.

134 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.133 < > product responsibility aspects (CONTINuED) performance indicators Indicator g4-pr1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement. Percentage of service Life cycle stages categories covered Comments on assessment procedures New construction 100% Our SHEDS are considered by all design teams during the concept and architectural development phase of all our new shopping centres, refurbishment or expansion projects and minor works. For further information, see page 49. During the construction phase, we aim to achieve excellent safety standards by defining strict procedures that exceed those which are required by law. All new shopping centre development projects must implement a site-specific SHEMS and achieve certification in accordance with the OHSAS standard for the entire construction phase. For further information, see page 49. Management 100% During the operations phase, all Sonae Sierra owned shopping centres implement the procedures defined by our corporate SHEMS with the aim of guaranteeing the safety of all building users. We use some specific tools to assess the safety of our shopping centres for building users, which are described on page 49. Audits are performed to assess compliance with Sonae Sierra s SHEMS at a corporate and site level on an annual basis. In shopping centres managed by Sonae Sierra, some critical procedures are also implemented to guarantee the prevention of incidents and the wellbeing of the workforce, as well as compliance with SHE legislation. Development/redevelopment 100% This covers expansion and refurbishment activities. The same procedures apply as those described in relation to New construction above. data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period, and all projects under development. g4-pr2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their lifecycle, by type of outcomes. Incidents of Incidents of non-compliance with non-compliance Incidents of regulations resulting with regulations non-compliance with Country in a fine or penalty resulting in a warning voluntary codes Portugal 1 36 Spain 3 Brazil 2 2 total Country Number of dangerous occurrences, reportable injuries and fatalities to non-workers on or off a site or assets as a result of non-compliance with regulation and voluntary codes Portugal 298 Spain 87 Italy 22 Germany 11 Romania 1 Brazil 243 total 662 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period and all shopping centres managed, but not owned by Sonae Sierra, during the reporting period.

135 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.134 < > product responsibility aspects (CONTINuED) ASPECT: product and SErvicE labelling Sustainable building Standards and certification disclosures on management approach a) report the impacts that make this aspect material Regulations and industry expectations concerning the sustainability performance of buildings have developed rapidly over the past few years. By applying sustainable design standards on new projects and significant expansions/refurbishments, we can prepare for new and emerging regulations whilst ensuring that our shopping centres are more attractive to investors and occupiers. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62. b) report how the organisation manages the material aspect or its impacts Policies and Commitments It is part of our policy to seek third party audit and certification of the SHEMS across all our sites. Goals and Targets We have set a long-term objective to obtain ISO and OHSAS certifications for the SHEMS of our construction projects and the Sonae Sierra owned assets that we have managed for two or more years, by As of 2013, we also aim for all our own new development projects, major expansions and refurbishments where we have direct control to target, as a minimum, BREEAM Good, LEED Silver or DGNB Bronze, see page 49. Responsibilities and Resources Responsibilities and resources for managing the products and services aspect are covered by our SHEMS. See Disclosures on Management Approach for the Environmental Aspect Overall on page 74. Specific Actions See Disclosures on Management Approach for the Environmental Aspect Products and Services on page 99. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring The extent of implementation of the SHEDS on each of our projects is assessed by an external advisor. Our local SHEMS are assessed by a third party certifier as part of the process for achieving ISO and OHSAS certifications. Results and Adjustments See Our performance, pages 21 to 53, and GRI Indicators G4-PR4 and CRE8.

136 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.135 < > product responsibility aspects (CONTINuED) performance indicators Indicator g4-pr4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes. Incidents of Incidents of non-compliance with non-compliance Incidents of regulations resulting with regulations non-compliance with Country in a fine or penalty resulting in a warning voluntary codes Portugal 4 total 4 data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the reporting period and all shopping centres managed, but not owned by Sonae Sierra, during the reporting period. cre8 Type and number of sustainability certification, rating and labelling schemes for new construction, management, occupation and redevelopment. In 2013 Sonae Sierra achieved a total of nine new ISO and OHSAS certifications for construction sites and operational shopping centres. Offices Operations Development ISO Certification 2 2 OHSAS Certification 3 2

137 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.136 < > product responsibility aspects (CONTINuED) customer Surveys disclosures on management approach a) report the impacts that make this aspect material Engagement with customers is vital for any business: anticipating and responding to customers needs is essential to sustained revenue generation. In our business, this involves engagement with tenants, shopping centre visitors and our professional services clients. In the context of our sustainability strategy, it entails not only seeking feedback on our current practices, but also proactively identifying trends in tenants and visitors behaviour, including attitudes towards environmental and social concerns. By responding to feedback from these stakeholders, we can improve the quality and efficiency of our services and ascertain how we can best promote more sustainable practices in retail and consumerism, thereby supporting the long-term success of our tenants and our own businesses. This aspect was identified as material according to the Materiality Review performed by Sonae Sierra in 2013, which was based on a number of criteria covering both Sonae Sierra s impacts and stakeholders opinions. For further details, see our response to Identified Material Aspects and Boundaries on pages 61 to 62 above. b) report how the organisation manages the material aspect or its impacts. describe organisation-wide practices in place to assess and maintain customer satisfaction. these may include: the frequency of measuring customer satisfaction; Standard requirements regarding methodologies of surveys; mechanisms for customers to provide feedback Policies and Commitments Our primary customers are our tenants. We are committed to delivering a high quality service to tenants and maintaining high levels of tenant satisfaction. Within the context of our long-term sustainability priority Prosperous Retailers, we are also committed to partnering with our tenants to make their businesses more resilient. This includes the launch of new retail formats such as Flash Stores and Coop Stores that promote entrepreneurism and support innovation. See page 34. Goals and Targets In 2013, our existing long-term objectives in relation to tenants satisfaction were fully embedded within existing business procedures, rather than managed as part of our Sustainability Strategy. These objectives are: Deliver a high quality service to tenants and maintain high levels of satisfaction, striving to achieve an average tenant satisfaction level of 4 or above in all shopping centres. Engage with our tenants with the aim of helping them to improve their safety, health and environmental performance. For more information about our goals in relation to Prosperous Retailers see Our Business Model and Strategy, page 14. Responsibilities and Resources Senior responsibility for tenant satisfaction and other aspects of tenant engagement and management is divided between the Sonae Sierra Board Director responsible for Property Management and Leasing in Europe (including ultimate responsibility for Sonae Sierra s 30 top tenants) and the CEO of Sonae Sierra Brasil. Responsibility is divided at the management level between the Heads of Property Management in each country of operation. Shopping Centre Managers take responsibility for managing the day to day relations with tenants, with support from centralised leasing teams. We have an on-line Property Integrated Management System (PIMS) in place which supports all lettings management processes in an integrated way. Specific Actions We help our tenants to improve their financial and CR performance through training and marketing, and our efforts to increase our shopping centres operational efficiency (including reductions in energy, water and waste costs in line with our environmental strategy) help to deliver cost reductions for tenants. For details of specific actions undertaken in 2013 concerning Prosperous Retailers, see Our performance, pages 25 to 35. Specific Actions Visitors In addition to the surveys described below, in 2013 we performed specific research into consumers attitudes towards sustainability. See Our performance, pages 25 to 35.

138 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.137 < > product responsibility aspects (CONTINuED) disclosures on management approach (continued) c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring We regularly monitor the effort ratio of our tenants (the ratio of rents plus common charges paid by the tenant to the sales they achieve) and compare the performance of different tenants with similar operations in the same centre or similar units in different shopping centres. If we detect that a tenant has a very high effort ratio, we arrange a face-to-face meeting with the store management team to seek to understand the reasons for this and if possible help the tenant to find a solution. We undertake annual tenant satisfaction surveys in all our owned shopping centres, which allow us to gain general feedback on operational aspects, marketing events, communications, our sustainability activities and satisfaction with our shopping centre management teams. Top Tenant surveys in Portugal, Spain, Germany, Italy, Greece and Brazil obtain feedback from key tenant companies at the senior management level. Survey results are used to develop action plans to address aspects which receive low scores and ultimately drive continuous improvement in tenant satisfaction levels. With respect to shopping centre visitors, we regularly undertake Mall Tracking surveys at our shopping centres to help us understand our visitors profiles, their behaviour and requirements. These surveys monitor trends in visitor satisfaction, expectations, loyalty and behaviour. Shopping centres develop action plans on the basis of the survey results, paying particular attention to critical success factors affecting visitor numbers and short-term actions necessary to correct any negative results. In 2013 we also conducted a specific corporate responsibility survey to better understand visitor attitudes towards sustainability and target our initiatives and communications accordingly. See page 65 for more details. We have a customer feedback system in place, called Customer Contact Management, which provides a unique source of learning for our shopping centres. We encourage visitors to submit their suggestions and complaints in writing and we ensure that the Shopping Centre Manager personally responds to all suggestions and complaints presented. In order to improve both the quality of our contact with customers and our ability to learn from them, in 2010 we carried out a Contact Management project. This involved reviewing and systematising all the procedures for written and verbal contacts with customers; creating new tools for reporting customer contacts and training all the internal and external staff working in our shopping centres on how to handle customer questions and complaints. In Brazil, we provide training to our Customer Contact Management team and evaluate their skills and compliance with our customer care standards using a mystery shopper technique both within shopping centres and through calls made to the Call Centre. Shopping centre visitors may also present complaints to the Sierra Ombudsman. When customers offer their time to provide written feedback it is essential to show that we take it seriously. The first step is to ensure an adequate answer in a short period of time. This timing is measured against a SLA (Service Level Agreement). The objective is to respond to customers in three working days, but acknowledging that this is not always feasible, the SLA target is 70% answered in three days; 95% in one week and 100% in two weeks. All employees working at our shopping centres are trained in how to manage verbal feedback through tools including a training film, presentation and a pocket book summarising the correct procedures and behaviours. Results and Adjustments See Our performance, pages 25 to 35, and GRI indicator G4-PR5.

139 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.138 < > product responsibility aspects (CONTINuED) performance indicators Indicator g4-pr5 Results of surveys measuring customer satisfaction. tenant Satisfaction index Year Average score data Qualifying note: This indicator includes shopping centres owned by Sonae Sierra and in operation during the reporting period (including Parque Principado in Spain which was sold during the last quarter of 2013). It does not include Passeio das Águas Shopping and Boulevard Londrina Shopping (both Brazil), and Hofgarten Solingen (Germany), because the surveys are only performed after a shopping centre has been in operation for a minimum of six months. Sonae Sierra s tenant satisfaction index is derived from tenants responses to two questions: (1) Relationship with the Sonae Sierra Management Team, and (2) Degree of satisfaction with Sonae Sierra. For both questions, tenants can answer on a scale of 1 ( not satisfied ) to 6 ( very satisfied ) or 9 ( no opinion ). visitor Satisfaction index new methodology (for countries that report indexes) Year Average score data Qualifying note: The new methodology indicator includes all 29 shopping centres owned and in operation for the full reporting year in Portugal and Spain (including Parque Principado in Spain which was sold during the last quarter of 2013). visitor Satisfaction index old methodology (for countries that report 0-4 indexes) Year Average score data Qualifying note: This indicator for the old methodology includes 16 out of 20 shopping centres owned and in operation for the full reporting year in Italy, Germany, Greece, Romania and Brazil. Boulevard Londrina Shopping and Passeio das Águas Shopping (Brazil), and Hofgarten Solingen (Germany), are not included for the same reason that they did not perform tenant satisfaction surveys. Le Terrazze in Italy is also not included because it did not conduct a survey. Parque D. Pedro Shopping in Brazil conducted market research to assess visitor satisfaction levels instead of conducting standard interviews. Parque D. Pedro Shopping, Manauara Shopping and uberlândia Shopping chose to rate their assessment on a scale of 1 to 100, instead of using the old methodology. For this reason, their results were extrapolated to the 0-4 scale.

140 annex: global reporting initiative SONAE SIERRA 2013 Economic, Environmental and Social Report.139 < > product responsibility aspects (CONTINuED) ASPECT: compliance disclosures on management approach a) report the impacts that make this aspect material Our Code of Conduct iterates our commitment to act with honesty and integrity and in strict compliance with the law. It is therefore essential that we guarantee compliance, as a very minimum, with all legislation applicable to our business activities. b) report how the organisation manages the material aspect or its impacts Policies and Commitments Sonae Sierra s Code of Conduct promotes the fundamental aspects of ethical behaviour that Sonae Sierra s Board believes should be adopted in Company business and activities, and lists the Ethical Principles that include the duties of strict compliance with the Law and acting with honesty and integrity. Goals and Targets Not applicable. Responsibilities and Resources Responsibilities and resources for managing the product and services aspects are covered by our SHEMS. See Disclosure on Management Approach for the Environmental Aspect Overall on page 74. Specific Actions Not applicable. c) report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach. The results of the evaluation of the management approach. Any related adjustments to the management approach. Monitoring See Disclosure on Management Approach for the Product Responsibility Aspect Sustainable Building Standards and Certification on page 134. Results and Adjustments See GRI indicator G4-PR9. performance indicators Indicator g4-pr9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Sonae Sierra did not identify any non-compliance with laws or regulations in We consider significant fines or penalties to be ones for which the amount (individual fine) is greater than 500.

141 SONAE SIERRA 2013 Economic, Environmental and Social Report.140 < > INDEPENDENT AUDITOR S REVIEW REVIEW REPORT To the Board of Directors of Sonae Sierra, SGPS, SA Introduction 1. We have performed a review to the sustainability information included in the Economic, Environmental and Social Report 2013 ( EESR 2013 ) of Sonae Sierra, SGPS, SA ( Sonae Sierra ), that covered: Its accordance with the disclosure of information requirements defined by the Guidelines for Sustainability Reporting of the Global Reporting Initiative, version v4 of 2013 ( GRI G4 ), for the core option, and additional contents and performance indicators required by the GRI s G3.1 Construction and Real Estate Sector Supplement ( GRI CRESS ) related with the sustainability material aspects, including the reliability of the overall related information and 2013 data, as identified in Annex: Global Reporting Initiative ; Sonae Sierra s own sustainability performance indicators disclosed in the EESR 2013, in accordance with the therein mentioned criteria; The information on progress against the 2013 sustainability targets and management actions, in accordance with criteria established by Sonae Sierra, disclosed in its internet site, as identified in chapter Our Business Model and Strategy of the report; and The Sonae Sierra s environmental accounting model information and results for the property management activity, disclosed in Disclosures on Management Approach of the material aspect Environmental Overall within Annex: Global Reporting Initiative, in accordance with the therein mentioned criteria. Responsibilities 2. Sonae Sierra s Board of Directors is responsible for preparing the Economic, Environmental and Social Report 2013, as well as defining, implementing and carrying out adequate processes, procedures, internal control systems and criteria for collecting, processing, presenting and validating the information contained therein. Our responsibility is to issue a report, based on the procedures referred to below, on the information referred to above. Scope 3. We conducted our review in accordance with the International Standard on Assurance Engagements 3000 ISAE 3000, issued by the International Auditing and Assurance Standards Board, regarding assurance engagements other than audit or reviews of historical financial information, for a limited level of assurance.

142 SONAE SIERRA 2013 Economic, Environmental and Social Report.141 < > INDEPENDENT AUDITOR S REVIEW (CONTINUED) 4. This standard requires that we plan and perform procedures and apply audit skills and techniques, in order to obtain an adequate understanding of the matters under review and, considering the circumstances, to obtain sufficient appropriate evidence on which to base our conclusions. In a limited assurance engagement, the procedures performed consist primarily of inquiries of Sonae Sierra s responsible and analytical procedures, including tests on a sample basis and therefore, less assurance is obtained than in an engagement aimed at obtaining reasonable assurance. 5. The main procedures performed were: Interview of those responsible in Sonae Sierra for the preparation of the EESR 2013 and for the reported data, so as to know and understand the management and report principles, systems and procedures applied, as well as the associated control mechanisms; Review of the compliance and consistency of the EESR 2013 content, with the GRI G4 Guidelines disclosure of information requirements for core option and whenever applicable with the GRI CRESS requirements; Review of the processes, criteria and systems used to collect, consolidate, present and validate the data for 2013, relating to the information reviewed by us; Review of the procedures and criteria in place to monitor and measure progress against 2013 sustainability targets and management actions; Analytical data review, and tests on a sample basis, of the calculations made by Sonae Sierra, relating to the quantitative data, as well as tests to corroborate the quantitative and qualitative data included in the scope of our work, by obtaining and reviewing related evidence thereof; and Review of the consistency of the sustainability information included in the EESR 2013 and related publicly available reports, and that does not contradict any significant information included in the Sonae Sierra s Consolidated Financial Statements as of 31 December Opinion 6. Based on the work performed, as described in paragraph 5 above, which was executed to obtain a moderate level of assurance, nothing has come to our attention that causes us to believe that the sustainability information included in, or publically available and related to the EESR 2013, referred to in paragraph 1 above, has not been reliable and consistently prepared and that it does not conform, in all material respects, with the disclosure requirements of the GRI G4 Guidelines for the core option, and whenever applicable of GRI CRESS, as well as with the criteria defined by Sonae Sierra. Lisbon, 21 March 2014 Deloitte & Associados, SROC S.A. Represented by João Carlos Frade

143 SONAE SIERRA 2013 Economic, Environmental and Social Report.142 < > FEEdbacK Form At Sonae Sierra we aim to conduct our business in a way that is sensitive and responsive to our stakeholder s needs and concerns. We hope that you enjoyed reading our Economic, Environmental and Social Report and would be grateful if you could take a few minutes to provide us with some feedback on this report. Please complete the questions below and return your form either by to cr@sonaesierra.com or by post to Rua Galileu Galilei, 2, 3º piso, Lisbon, Portugal. can you tell us 1. About you. Which stakeholder group do you belong to? Investor/ financier Local community member Tenant NGO/ charitable organisation Shopping centre visitor/customer Media Sonae Sierra s employee Government/ local authority Supplier Student Other, please specify Which country do you reside in? Please rate the extent to which you agree with the following statements: (Scale 1 = Strongly disagree; 6 = Strongly agree) This report included information that is of interest to me I liked the style and layout of this report I was able to find the information I was looking for The report integrated the information well on Sonae Sierra s financial, economic, environmental and social performance The report presented an honest and accurate account of Sonae Sierra s performance 3. using a scale of 1 to 6 (1 = Very Poor; 6 = Excellent), how do you rate: Information about Sonae Sierra s strategic direction? (Pages 14 to 19) Information provided on Sonae Sierra s business model and how we allocate resources? (Page 14) Information on how Sonae Sierra uses resources ( capitals ) and impacts upon the availability and quality of these resources? (Page 15) Information about risks and opportunities faced by Sonae Sierra? (Pages 19 to 20) Information about how the external environment affects Sonae Sierra? (Pages 21 to 24) Information about the future outlook for Sonae Sierra? (Pages 44 to 45) Information about the governance within Sonae Sierra? (Pages 46 to 49) The connectivity of financial, economic, environmental and social information? The extent to which information was provided on relevant ( material ) topics? 4. Is there any information on Sonae Sierra s economic, environmental and social performance which you felt was missing from this report? If yes, please describe what this was Are there any particular aspects of economic, environmental and social performance which you feel that Sonae Sierra needs to improve on? If yes, please explain which ones continued

144 SONAE SIERRA 2013 Economic, Environmental and Social Report.143 < > FEEdbacK Form (CONTINuED) 6. What do you see as being the main social, economic and/or environmental challenges for Sonae Sierra in the next five to ten years? Please use the space below to provide your own comments on this report or any other aspect of Sonae Sierra s economic, environmental and social performance Do you give us permission to publish your comments in our future sustainability communications? Yes, I do give permission. You can publish my comments under the name of No, I do not want my comments to be published. thank you

145 SONAE SIERRA 2013 Economic, Environmental and Social Report.144 < > OFFICES PORTUGAL LISBOA PORTO ALGERIA KOUBA BRAZIL SÃO PAULO CHINA SHANGHAI COLOMBIA CALI CROATIA ZAGREB GERMANY DÜSSELDORF GREECE ATHENS ITALY MILAN LUXEMBOURG LUXEMBOURG MOROCCO CASABLANCA ROMANIA BUCHAREST SPAIN MADRID THE NETHERLANDS HOOFDDORP TURKEY ISTANBUL For more information on our offices please visit