Iguatemi Empresa de Shopping Centers : Release 4Q15

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EARNINGS RELEASE

EBITDA up 10.9% YoY, reaching R$ 504 million in 2015 Short-term guidance reached

São Paulo, March 8th, 2016 - Iguatemi Empresa de Shopping Centers S.A. (IGUATEMI) [Bovespa: IGTA3], one of the largest full-service companies in the Brazilian shopping mall sector, reports results for fourth quarter 2015 (4Q15). Financial and operational information is based on the consolidated figures, in R$ '000, under the Brazilian Corporate Law accounting legislation and IFRS, as expressed in Accounting Pronouncements approved by the Brazilian Securities Commission (CVM) - except in relation to Iguatemi interest in the JK Iguatemi mall in São Paulo, of 50% up to March 31, 2014, and of 64% as from April 1, 2014, which is reflected, in this reporting, in the Company's complementary Independent Management Reporting format so as to better represent the Company's results. The reconciliation between the consolidated statements and the Independent Management Reporting information is in the Appendices section. Non-accounting figures have not been reviewed by the external auditors.

Conference Calls on 4Q15 Results Portuguese Conference Call March 9th, 2016 10 a.m. (Brasília time) 8 a.m. (US EST) Tel.: +55 (11) 2188-0155 Password: Iguatemi Replay: +55 (11) 2188-0400 Password: Iguatemi Available for 7 days English Conference Call March 9th , 2016 11 a.m. (Brasília time) 9 a.m. (US EST) Tel.: +1(412) 317-5459 Password: Iguatemi Replay: +1(412) 317-0088 Passcode: 10079188 Available for 7 days IR Team: Cristina Betts, CFO and IRO Gunther Schrappe, Strategy, Innovation and IR Director Carina Carreira, RI Elisa Manzato, RI Tel.: +55 (11) 3137-6877/6872 ri@iguatemi.com.brwww.iguatemi.com.br

4Q15 HEADLINES Year-end EBITDA reached R$ 504 million (within the implicit EBITDA guided for 2015), with an EBITDA Margin of 79%. 4Q15 EBITDA reached R$ 144 million with an 84% EBITDA Margin Total Sales were R$ 3.8 billion in 4Q15 and R$ 11.9 billion in 2015, a 15% increase versus 4Q14 and a 12% increase in the year (+5.8% in the quarter and +7.4% in the year, excluding the acquisition of Pátio Higienópolis) Same-area sales (SAS) were up 5.2% in 4Q15 and 5.8% in 2015, above same-store sales (SSS) of 4.2% in the quarter and 5.5% in the year, outperforming the other listed companies in the sector Same-store rent (SSR) was up 6.9% in 4Q15 and 6.8% in 2015, and Net revenues reached R$ 172 million in 4Q15 (+3% YoY) and R$ 637 million in 2015 (+8% YoY) Net profit reached R$ 42 million in 4Q15 and R$ 194 million in 2015 FFO reached R$ 69 million in 4Q15 and R$ 296 million in 2015 Acquisition, on October 1st 2015, of an 8.4% stake in Pátio Higienópolis. With this acquisition, Iguatemi now holds a 11.2% stake in this mall PSV swap, on October 1st 2015, with a guaranteed minimum value of R$ same-area rent (SAR) was up 7.1% in the quarter and 6.8% in the year 12.4 million, for the construction of one hotel tower in the Galleria mall Complex Issuance of R$ 105 million in securitization of Real Estate Receivables (CRI), on December 29th 2015, placed with a final rate of CDI + 1.30% p.a. (all in) and total term of 19 years

MESSAGE FROM MANAGEMENT

Our discipline in maintaining a coherent and assertive strategy, focused on having the best assets in the best locations and targeted to the highest income groups, made it possible for Iguatemi to once again deliver results that were: (i) better than the sector average; and (ii) within the Company's short-term guidance.

Our EBITDA at R$ 504 million (up 11% from 2015) was within the implicit EBITDA indicated by our guidance for net revenue growth and EBITDA margin given at the end of 2014.

Iguatemi has an important track record of promising and delivering its guidance. Since 2008, we have made commitments to short term guidance (as well as long-term guidance, ~5 years, which we gave in 2009) and we have consistently delivered these results, year after year.

The delivery of one more short term guidance, especially in a year with a challenging macroeconomic context and in which we had to postpone the expansion of the Iguatemi Porto Alegre mall, emphasizes our commitment to the investor market and demonstrates Iguatemi's planning and delivery capacity.

2009		2010		2011		2012		2013		2014		2015
Guidance	Real	Guidance	Real	Guidance	Real	Guidance	Real	Guidance	Real	Guidance	Real	Guidance	Real
Net Revenues Growth	9-12%	14.5%	15-17%	21.2%	25-30%	25.0%	25-30%	24.6%(1)	15-20%	13.0%(3)	N/A	27.1%	12-15%	8.1%(5)
EBITDA Margin	~70%	69.7%	70-72%	70.1%	70-72%	71.3%	~70%	72.5%(2)	70-72%	75%	72-75%	77%	76-79%	79%
EBITDA (R$ mn)	N/A	151	N/A	203	N/A	235	N/A	298	N/A	348	450-500	454	502-536(4)	504
Dividends (R$/share)	N/A	0.32	N/A	0.37	N/A	0.38	N/A	0.40	N/A	0.32	0.32	0.34	N/A	0.34
PSV swaps (R$ mn)	N/A	N/A	N/A	N/A	N/A	N/A	20-30	27.4	20-30	30.1	20-30	22.5	N/A	19.2

1. Iguatemi's Net Revenues would have grown 27.7% in 2012 if Boulevard Rio Iguatemi had not been sold. Alternatively, Iguatemi's Net Revenues grew 28.7% in 2012 if we exclude the Net Revenues of Boulevard Iguatemi in 2011 and 2012.

2. Adjusted EBITDA margin (and growth in adjusted EBITDA) leave out of account other operational revenues of R$ 108.2mn, relating to the sale of Boulevard Rio Iguatemi.

   
   

3. Iguatemi met the implicit EBITDA figure indicated by the guidance given for net revenues growth and EBITDA margin (implicit guidance of R$ 330-355mn vs. actual EBITDA of R$ 347.8mn).

   
   

4. Implicit EBITDA associated with the guidance of Net Revenues growth and EBITDA Margin.

   
   

5. Net revenues growth was 8% as per the postponement of Iguatemi Porto Alegre expansion to April 2016 (originally expected for September 2015).

2015 AND 4Q15 HIGHLIGHTS

Our results for 4Q15 and 2015 once again show the resilience of the company's portfolio, even in an adverse macro context.

For 2015, we report net revenues of R$ 637 million, EBITDA of R$ 504 million (up 8% and 11%, respectively) and EBITDA margin of 79%. For 4Q15, we report net revenues of R$ 172 million, EBITDA of R$ 144 million (up 3.3% and 0.6%, respectively), and EBITDA margin of 84%.

Our total sales in 2015 were R$ 11.9 billion, up 12% from 2014. In the fourth quarter total sales were R$ 3.8 million, up 15% from 2014. This growth is mainly due to (i) the quality of our projects, which continue to grow in spite of the economic crisis; (ii) maturation of our greenfields and expansions inaugurated in recent years; (iii) densification of the

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immediate area surrounding the malls; and (iv) the purchase of an equity interest in Pátio Higienópolis mall, which was not in the portfolio in 2014 (excluding this acquisition, total sales were up 5.8% YoY in 4Q15, and 7.4% in the year).

Over recent years, sales in shopping malls have increased as a percentage of total Brazilian retail sales. We believe this is a trend that will continue for the coming years - not only due to an increase in the number of malls, but also due to retail migration, especially high-income retail, from streets to shopping malls. We expect this trend, allied to a movement from retailers towards restructuring their store network, focusing on more productive / high-end locations, will strengthen our position as a preferential sales channel to the consumer.

In 2015 we report same-store sales (SSS) growth of 5.5% YoY, and same-area sales (SAS) growth of 5.8%. In the quarter, SSS was up 4.2% YoY, and SAS up 5.2% YoY - outperforming other listed companies in the sector - which we perceive as a demonstration of the resilience of our portfolio. The retail sectors that performed best in the period were entertainment, jewelry, health&beauty and the high-end international stores; the least successful performance was household appliances.

Same-store rentals (SSR) were up 6.9% in 4Q, and 6.8% in 2015; same-area rentals (SAR) were up 7.1% in 4Q, and 6.8% in the year.

The occupancy rate for our malls was 94.0% in 4Q15 and 94.6% in 2015 (it is important to note that our vacancy numbers include temporary rentals, i.e., contracts signed for less than four years are not considered in the occupancy rate). Furthermore, we reduced the net delinquency rate by 0.7 p.p., to 1.1% in 4Q15.

Rental revenues (at 100%) for our malls was up 16.8% YoY, at R$ 273 million in 4Q15. Parking revenues (at 100%) for our malls was up 43.4% YoY, at R$ 64 million. The increase in rental and parking revenues were mainly due to: (i) maturation of the malls we have opened in recent years; (ii) acquisition of Pátio Higienópolis mall, which was not part of the portfolio in 2014; and (iii) increases in the flow of vehicles and adjustments in the parking tariffs. Excluding Pátio Higienópolis' acquisition, rental revenues for all malls were up 5.9%, and parking revenues up 33%.

Openings and acquisitions: In 2015 we opened two expansion projects and acquired 11.2% of Pátio Higienópolis mall.

In April 2015 we opened the expansion of Iguatemi Campinas, adding 19,200 sqm of GLA to the mall. The complex now has a total GLA of 105,900 sqm (73,500 sqm excluding Boulevard Iguatemi, adjacent to the mall), and became the largest mall, in terms of GLA, in our portfolio. The expansion opened with 90% of its GLA leased and introduced several new brands into the Campinas region (such as Zara Home, GAP, Sephora, Diesel, The North Face, New Balance, Kiehl's, Michael Kors, Coco Bambu, PF Chang's, Johnny Rockets, Abbraccio, etc.). This expansion has presented an accentuated maturation curve: already in the first six months of operation, gross revenue growth was very similar to the GLA growth.

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In 3Q15, we opened the expansion of Iguatemi São Paulo and finalized the revitalization of the Main Plaza, adding 1,188 sqm of GLA and refreshing the image of this mall, which is our flagship mall and the most important mall in Latin America. With the expansion we opened three new flagship stores of important international brands (Piselli, Cartier, Dolce&Gabbana and Saint Laurent). Additionally, in April 2016 we will open the first Polo Ralph Lauren operation in Brazil. These new operations further strengthen the mix of stores of the complex.

On October 1st, 2015, Iguatemi acquired, for R$ 125 million, from Fundação Conrado Wessel, a direct stake of 8.4% in Pátio Higienópolis mall. This acquisition, added to the first equity stake acquired on July 2016, takes Iguatemi's total interest in Pátio Higienópolis to 11.2% (the last installment of this acquisition - R$ 50.0 million - was paid, corrected by the CDI rate, as a subsequent event on February 25th, 2016).

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