Iguatemi Empresa de Shopping Centers S A : Financial Statement

DIVULGAÇÃO DE RESULTADO

Quarterly Information Form (ITR)

Iguatemi Empresa de Shopping

Centers S.A.

September 30, 2021

with Independent Auditor's Review Report

(A free translation from Portuguese into English of Independent auditor's review report on Quarterly Information prepared in Brazilian currency, in accordance with rules issued by the Brazilian Securities Commission (CVM) applicable to Quarterly Information Form (ITR))

DIVULGAÇÃO DE RESULTADO

MESSAGE FROM MANGEMENT

Summary of Operations and Sales

The 3rd quarter of 2021 was marked by great advancements in vaccination and immunization in Brazil, which reached a significant portion of adult population, and by a solid decrease in the number of deaths, hospitalization due to Covid-19 and improvement of pandemic indicators throughout the country. As a result, during this quarter, local authorities lifted several of the remaining restrictions applicable to our sector, and our operations continued to ramp-up as seen since the reopening in April 2021.

For the first time since the pandemic began, we began to operate at 100% of our capacity utilization - the number of operation hours during the pandemic divided by the number of operation hours during regular hours - with little operating restrictions on movie theaters, gyms and restaurants. Therefore, we saw our capacity utilization climb from 76.3% in 2Q21 to 99.1% in 3Q21.

In this scenario, people became more confident to be in public spaces and resume their commercial and leisure activities, getting back to their pre-pandemic routine. This resumption had a direct impact on the malls that, during all months of the third quarter, recorded sales higher than 3Q19 figures. The same impact was seen in the vehicle flow, recording a significant improvement since the second reopening, in April 2021. Several store segments that depend on customer flow, such as restaurants, food court, service center and entertainment operations have intensified their recovery.

With the lifting of various restrictions related to flow and usability, and also the improvement in consumer confidence due to the vaccination program, sales in July reached 105% (as disclosed in the operational preview) and in August and September to 102% and 107% respectively, on 3Q19 sales.

DIVULGAÇÃO DE RESULTADO

The strong sales results in the quarter makes us optimistic about the last quarter of the year, historically the strongest one, which will be the first quarter, since the beginning of the pandemic, which will have a large portion of the population vaccinated and fewer restrictions on commercial activities.

We continue to believe that this positive trend should continue, as a larger portion of the population has been immunized. According to the current projections from the authorities, it is expected that 100% of the adult population will be fully vaccinated by November 2021. Thus, customers will be more comfortable to resume their more frequent visits to the malls. However, despite the improvement in future outlook, we understand that the pandemic is not over, and we must continue to comply with health and safety protocols established by Public Authorities in order to ensure everyone's wellbeing.

Billing Policy

In the third quarter, we kept our billing policy on a case-by-case basis, according to each mall's profile and the impacts on tenant's rent readjustment. However, given the mall's sales performance in the last months, it was possible to keep sustainably and continually withdrawing the discounts granted to tenants, providing the relief needed for the reality of each tenant.

This billing policy, driven by sales resumption, had positive impacts on operational indicators, with real gains on inflation and substantial growth over 3Q19. Thus, in 3Q21 same-store rents (SSR) and same-area rents (SAR) were up by 22.9% and 11.9% over 3Q19, respectively. Even with this billing policy, we were able to record a sharp drop in the delinquency rate, reaching 2.1% in the quarter, and also in store tenants' occupancy costs, which came to 12.3% in 3Q21, reflecting not only Iguatemi's capacity to charge rent but also to receive overdue rents.

Commercial Activity

In terms of sales of our spaces, for the first quarter since the beginning of the pandemic, an improvement in the occupancy rate was observed, with an increase of 90.7%, 0.6 p.p. As mentioned in previous earning releases, the upturn in demand since operations resumed in the end of April, gave way to more conversion and execution of agreements over the past months. The evolution of occupancy rate during the pandemic shows our pricing policy for vacant GLA, which has kept similar rent prices as the pre-pandemic levels, without compromising the development of our malls' ideal mix.

DIVULGAÇÃO DE RESULTADO

Also, in the scope of sales, in 3Q21, in addition to being able to rent vacant GLA, we managed to charge R$7.3 million in key money. This shows the storeowners' positive outlook for upcoming quarters, their interest in quality spaces and the competitive advantages of Iguatemi's portfolio.

We believe this mall occupancy trend will go on in the coming months, in view of the October sales and that Black Friday and Christmas are coming up.

Restructuring

Following the corporate restructuring proposal, at the EGMs on October 1st and 13th, 2021, Jereissati Participações, unanimously, and Iguatemi, with 65% of minority votes in favor of the transaction, approved the merger of Iguatemi shares held by non-controlling shareholders into Jereissati. The Transaction aims to create Iguatemi S.A., the new corporate name of Jereissati, which will merge the shareholder base of both companies into a single company, with its shares listed as Units in Nível 1 listing segment of B3 S.A., keeping shareholder rights and governance practices substantially similar to those required in Novo Mercado listing segment. Furthermore, the Company's new Bylaws lays down veto powers for non-controlling shareholders in specific matters, in addition to the creation of 4 new committees comprising statutory members.

This new structure is a key step towards the Company's future, since it allows Iguatemi to increase its investment and growth capacity, placing it in a favorable position to participate in future consolidation, business combination and acquisition of strategic assets, thus increasing the company's importance in the market in which it operates.

The next steps to complete the company's merger are the period for both Iguatemi and Jereissati shareholders to exercise their withdrawal rights, which is scheduled to end on November 16. Then, on November 18, a Board of Directors meeting will be held to put the transaction results into effect after withdrawal rights are exercised and, on November 22, the new Units (B3: JGTI11) will begin trading.

Employees

As announced, Carlos Jereissati will withdraw from the position of Company CEO at the end of 2021 and, as such, the succession process for Cristina Betts, who will take office in January 2022, has already started.

This change gave rise to other internal changes, of which the most significant to the Market is the promotion of Guido Barbosa de Oliveira to Finance VP, after 26 years with Iguatemi and various contributions as Finance Officer. Such changes reinforce the importance and seriousness with which we carry out succession planning and talent development to ensure the sustainability of our business.

In June, for the second year in a row, we were recognized by Great Place to Work as one of the best companies for Women to work for and we were also awarded the WEPS (UN Women) prize in the bronze category. Both awards are a confirmation of our commitment to gender equality and corporate social responsibility. In addition, we are among the top 5 finalists of the Top Of Mind survey, competing in the Star category in People Management during the Pandemic.

Still in July, our EVP (Employee Value Proposition) was launched - a project structured over approximately 12 months, with the support of two large agencies and internal HR and Marketing teams, which allows us to have a clear, consistent positioning that reflects the Company's culture, including a positioning strategy, the manifesto and a motto, that is, our employer brand signature, which will increase our strength in attracting market talent.

DIVULGAÇÃO DE RESULTADO

Omnichannel

In the third quarter, we continued to advance on important topics on the two major fronts of Iguatemi's digital strategy:

Iguatemi 365

In this second semester of 2021, we attained important goals regarding Iguatemi 365, such as: (i) completion of the geographical expansion, currently being delivered to all Brazilian states, in a total of 3 thousand cities, which leads to an exposure of 91% of the GDP; (ii) inclusion of 14 new brands to our catalogue, among which the world-famous brands Balenciaga, Colavita and Michael Kors, and increase in our range of products, reaching the level of 19 thousand SKUs on the platform, a growth of 85% in relation to 2Q20; and (iii) recording of the best sales result in a quarter, with a three-fold increase in the website traffic in June versus the same prior-year period in 2020.

We are still on schedule and looking forward to the important milestones in relation to Iguatemi 365 in the second half of the year, such as launching of our App and inauguration of the new Pop-up store in Iguatemi São Paulo.

Iguatemi One

Iguatemi consolidates its performance as a data driven company, focusing on data analysis and processing. With a view to offering a better experience to our customers, this structure allows us to anticipate issues and needs, in addition to planning and acting on a quick response.

This is only possible as a result of all the integration initiatives of our customers' experience, both physically and digitally. Programa One platform offers much more than special benefits. It allows us a personalized and careful look at every program participant and at our day-to-day as Iguatemi.

Iguatemi Institutional

The Taste Music

Following all safety protocols, Iguatemi resumed the organization of important events, such as the Taste Music. This year, the event was sponsored by Heinz and Stella Artois, with the support of Grand Cru, bringing together the gastronomy and music worlds. The event was held from June 24 to 27 at the Iguatemi São Paulo Boulevard, from July 1 to 4 at Pátio Higienópolis, and from July 9 to 18 at Iguatemi Alphaville.

Customers were able to taste the menus of the best restaurants in the city of São Paulo to the music of renowned DJs, with total safety, isolated in closed booths, and limited to up to four people, observing health protocols. The event reinforces the Company's pioneering spirit in promoting innovative experiences for its consumers and its tradition of holding events aimed at this segment.

The event was attended by a large audience, and all available tickets were sold out in a few days. Given the success of the project, a new season of The Taste Music will take place in August on the following dates and locations: from 12 to 15 at Iguatemi São Paulo, from 20 to 22 at Iguatemi Campinas, and from 26 to 29 at Pátio Higienópolis.

A portion of the box office sales was donated to Instituto Reciclar, a long-term partner of Iguatemi.