2017: Sales grew 4.3% and EBITDA reached R$ 541 million Guidance met for the ninth consecutive year

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1 2017: Sales grew 4.3% and EBITDA reached R$ 541 million Guidance met for the ninth consecutive year São Paulo, February 27 th, 2018 Iguatemi Empresa de Shopping Centers S.A. (IGUATEMI) [B3: IGTA3], one of the largest full-service companies in the Brazilian shopping mall sector, reports results for the fourth quarter of 2017 (4Q17). 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). Nonaccounting figures have not been reviewed by the external auditors. 4Q17 and 2017 Earnings Conference Call English Conference Call February 28 th, a.m. EST 11 a.m. BRT Tel.: +1 (412) Password: Iguatemi Replay: +1 (412) Password: Available for 7 days Portuguese Conference Call February 28 th, a.m. EST 10 a.m. BRT Tel.: +55 (11) Password: Iguatemi Replay: +55 (11) Password: Iguatemi Available for 7 days 4Q17 AND 2017 HIGHLIGHTS Total sales were R$ 13.3 billion in 2017, a 4.3% growth versus 2016, and R$ 4.0 billion in 4Q17, 3.1% above 4Q16 Same-store sales (SSS) grew 3.5% and same-area sales (SAS) grew 4.9% in In the quarter, SSS was 2.5% and SAS was 3.1% Same-store rent (SSR) increased 5.8% and same-are rent (SAR) increased 5.9% in In the quarter, SSR was 4.4% and SAR was 4.1% Net revenues reached R$ million in 2017, up 3.6% versus 2016 and in line with the guidance for the year, and R$ million in 4Q17, 1.1% above 4Q16 EBITDA was R$ million in the year and R$ million in the quarter, a 3.7% and 5.4% increase respectively. EBITDA margin reached 78.1% in 2017, above the guidance, and 81.0% in 4Q17 Net income came in at R$ million in the year and R$ 64.2 million in the quarter, up 33.3% and 29.0%, respectively FFO was R$ million in 2017, 19.3% above 2016, and R$ 90.9 million in 4Q17, 19.2% above 4Q16 Pre-payment of the BNDES debt, reducing the Company s average cost of debt to 103.2% of the CDI IR Team: Cristina Betts, CFO Roberta Noronha, IRD Carina Carreira, IR Arnon Shirazi, IR Leverage ended the year at 2.96x net debt/ebitda Fitch Ratings raised Iguatemi s rating to AAA(bra) from AA+(bra) Iguatemi shares ADTV increased 146% in 2017, resulting in the addition to the Bovespa index on January 1 st, 2018 Acquisition of a 0.31% stake in Shopping Pátio Higienópolis in February 2018 for R$ 4.6 million, representing a 2017 NOI multiple of 12.7x Launch of the new website for Malls and Outlets, with more and better features Tel.: +55 (11) /6877 ri@iguatemi.com.br

2 MESSAGE FROM MANAGEMENT The year 2017, as well as the year 2016, presented great challenges. With the economy still contracted, high interest rates and a number of political uncertainties, consumers willingness to buy and retailers willingness to invest were shy, despite initial signs of recovery. Thus, we maintained the concentration of our efforts in (i) improving our internal processes; (iii) strengthening our capital structure; (iii) searching an even more robust and updated tenant mix for the malls in our portfolio; (iv) strengthening our relationships with retailers; and (v) constantly improving the consumer experience. We emphasize that during these last years, the strategy of having the best assets in the best locations has guaranteed us a unique advantage, especially with the increase of the retailers demand for the best locations (flight-to-quality) where they can establish their flagships stores and, thus, create greater proximity to consumers through a differentiated consumer experience. As a consequence, we have been very successful in updating the tenant mix of several malls and we are confident that we will continue to be well positioned for the structural changes that are to come in the retail sector. With discounts at still high levels and occupancy below historical levels, we reached net revenue of R$ million, 3.6% above 2016 and within the guidance provided for the year. As a result of our diligence with costs and expenses and the successful updating of the tenant mix, we reached an EBITDA of R$ million and a margin of 78.1%, above guidance Guidance 2017 Actual Net revenues growth 2 7% 3.6% EBITDA margin 73 77% 78.1% CAPEX (R$ million) (1) (1) Accrual basis. Includes CAPEX for maintenance, reinvestment, projects and capitalization. Iguatemi has an important track record of promising and delivering its result guidances. Since 2008 we have committed to short-term guidances and have been consistent in achieving these results, year after year. The delivery of one more guidance, especially in a year with a challenging macroeconomic and political scenario, reinforces our focus on results and demonstrates Iguatemi's planning and execution capability. 4Q17 AND 2017 HIGHLIGHTS Iguatemi ended the fourth quarter of 2017 with positive results. Sales in our portfolio grew 3.1% in the quarter compared to 4Q16, to R$ 4.0 billion, and closed the year at R$ 13.3 billion, 4.3% higher than in Our performance in samestore sales (SSS) was 2.5% in the quarter and same-area sales (SAS) was 3.1%. Even with an anchored inflation, we were able to deliver same-store rent (SSR) and same-area rent (SAR) rates of 4.4% and 4.1%, respectively. This sales performance translated into the results of the malls: considering the assets at 100%, we had a 5.0% growth in rent revenue for the quarter (minimum rent + overage + temporary lease), reaching R$ million (+5.8% in 2017 to R$ 1,066.5 million). Parking revenue grew 3.5% in 4Q17, totaling R$ 65.4 million (+6.6% in 2017 to R$ million). 2

3 2017 Relevant Events: In June JK Iguatemi completed its fifth year of existence. Opened in 2012, the development was known for its modern and daring architecture, the predominance of the most wanted high-end brands and restaurants that are currently considered reference in gastronomy. In few years the mall stood out as one of the assets in our portfolio with the highest revenue per square meter, even in the midst of a more troubled macroeconomic environment, and we believe it to be among the top 10 assets in Brazil. In October, following the Fio da Meada event, held in Iguatemi São Paulo in 2016, we held Iguatemi Talks Fashion at JK Iguatemi, a three-day conference with the objective of promoting and disseminating relevant national and international fashion content. The event brought together professionals and the public through meetings, lectures, chats, workshops and mentorships, with themes related to market trends and the future of the sector such as Social Fashion, Women's Empowerment, Genderless, Design in the Age of Social Media, Fashion Bikini, among others. In addition, it counted on renowned personalities like Giovanni Bianco, the Italian-Brazilian who is a world reference when the subject is fashionable; Paulo Borges, creator and creative director of São Paulo Fashion Week; Marco Bizzarri, president of Gucci; Tim Blanks, Editorin-Chief of the Business of Fashion; Virgil Abloh, creative director of Off-White; Alexandre Birman, CEO of the Arezzo Group; Silvia Rogar, editorial director of Vogue Brasil; and Costanza Pascolato, businesswoman and fashion consultant, among others. 3

4 Also in October, we launched Pitch, a project that promotes meetings with the aim of approaching startups and companies with innovative solutions. By enrolling in Pitch, these companies have the opportunity to tell us what they do relative to innovation and their differentials and, if we find it interesting, they can become Iguatemi's partners. In December, we launched the new website for Shopping Centers and Outlets. With a new layout and much easier to navigate, we now offer a better mobile experience, which represents more than 80% of our accesses. At our customers will be able to identify the malls closest to their location, besides being able to consult all the information about stores, food, movies, events, services and blogs with local tips. The website also has much more attractive media spaces for advertisers. Maturing portfolio and the benefits brought with the development of the areas surrounding our malls: Currently we have three malls that are still going through the maturation process (period of 5 years after launch): (i) I Fashion Outlet Novo Hamburgo (2013); (ii) Iguatemi Ribeirão Preto (2013); and (iii) Iguatemi São José do Rio Preto (2014). Together, these assets represent 15.3% of our Total GLA of Malls. We also have some expansions with less than 5 years since opening, such as the expansions of Praia de Belas (2013), Iguatemi Esplanada (2013), Iguatemi São Carlos (2014), Iguatemi Campinas (2015), Iguatemi São Paulo (2015) and Iguatemi Porto Alegre (2016), which together represent 13.7% of Total GLA of our portfolio. Even with the last years presenting an adverse economic scenario, impacting the consumption, we are confident with the seasoning of these assets. A strong contributor to the maturation of these assets and to a better performance of the mature assets is the densification of the areas surrounding our malls. In 4Q17, the main movements that occurred around our assets occurred in the cities of Porto Alegre, Brasília and São Paulo. In Porto Alegre, we observed the delivery of medium / high-end residential developments located within a radius of up to 2 km from our two malls, of which 10 thousand m² are located around Praia de Belas and 5.2 thousand m² around Iguatemi Porto Alegre. When considering a radius of 3 km away from Iguatemi Porto Alegre, we also highlight the delivery of Capital Tower, considered one of the main high-qualification projects in the corporate region of the city. In Brasília, the Northwest region is becoming the main development axis of the surrounding area of our mall, both for residential and commercial projects, with the delivery of 20 thousand sqm of private area in the last quarter of In São Paulo, around Market Place, 99 thousand square meters of private residential area were delivered in this last quarter of 2017 and a new corporate enterprise added 25,000 m² to the region, which continues to expand as a corporate hub of the municipality. In the surrounding area of Iguatemi São Paulo, three projects were delivered with an average of 500 sqm of private area. Finally, around JK Iguatemi were delivered approximately 15,000 sqm of residential projects with a larger footage (350 sqm) than the average in the Vila Olímpia region (141 m²). Results: As a result of the company's efforts, our net revenue reached R$ million in 4Q17, 1.1% above 4Q16, and R$ million in the year, a 3.6% growth versus 2016 and within our guidance disclosed to the market. 4

5 EBITDA reached R$ million in 4Q17, growth of 5.4% compared to 4Q16, and R$ million in 2017, growth of 3.7% year-on-year. EBITDA performance above net revenue growth is largely explained by the record result obtained with resale of commercial points made throughout the year, in line with our strategy of revitalizing the tenant mix of our assets. As a consequence, we ended the year with EBITDA Margin of 78.1%, surpassing the top of the guidance. In the months of May and September we paid dividends relative to 2016 result, totaling R$ 120 million and equivalent to a dividend yield of 1.7%. On the debt side, in 2017, two renowned rating companies improved Iguatemi's corporate rating: (i) S&P raised our "braaa" rating to "braa" in August; and (ii) Fitch Ratings raised our rating to 'AAA (bra)' from 'AA + (bra)' in December. In September we issued a CRI (securitization of receivables) in the amount of R$ million, at a cost of 96% of the CDI, with the purpose of strengthening the Company's cash position. Finally, in November, we prepaid the BNDES debt, in the amount of R$ million. Accordingly, the Company's total debt ended the year at R$ 2.1 billion, at an average cost of 103.2% of the CDI and an average term of 4.8 years. Despite a cash position 12.7% lower compared to the previous quarter (3Q17), of R$ million, the Company's net debt was R$ 1.6 billion and resulted in a reduction of the net debt/ebitda ratio to 2.96x, in line with the Company's deleveraging strategy to strengthen the balance sheet to accommodate potential growth opportunities. EXPECTATION FOR THE NEXT YEARS AND 2018 GUIDANCE Although 2018 is still a year of uncertainty on the political front, we believe that the worst moment of economic activity is now behind us. According to Boletim Focus of April 19 th, 2018, the economists consensus predicts a GDP growth for 2018 in the order of 2.8%, above the expectation for 2017 of 1%. Thus, we are positive that a new growth cycle begins for the Company, whose main vectors will be (i) the constant improvement in the performance of the assets of our portfolio, and (ii) the GLA growth, be it through greenfields, brownfields or acquisitions. Maturation of the new areas and the beginning of the discounts withdrawal process: In September 2018, Iguatemi Ribeirão Preto will be 5 years old. Also this year, in November, the expansion of Praia de Belas and Iguatemi Esplanada, which added 17,624 sqm and 39,550 sqm, respectively, to their malls, will complete their 5th anniversary. These areas, which have spent much of their maturation process in the midst of the crisis, together with Iguatemi Rio Preto and Galleria, concentrate a large part of the discounts granted to retailers in recent years and should, therefore, be the great vector of organic growth for sales and revenue in the years that follow. 5

6 Increase in the average portfolio occupancy: With the process of tenant mix readjustment for several assets in a very advanced phase, we will already be able to observe in 2018 an improvement in the occupancy rate for the portfolio. JK Iguatemi, for example, which had large vacant areas in 2017, recently opened new operations such as Lojas Renner, Asics / Onitsuka Tiger, Pizza Makers, Confectionery Dama, Agilita, Fiever, Replay, isolution, the Japanese restaurant Kitchin and Bar Astor. Densification of the areas surrounding the malls: As mentioned above, in the medium and long term we expect our landbank to contribute to the Company s growth. This landbank of approximately 748 thousand square meters of private area/real estate demonstrates the potential for future growth to be captured by the Company through the densification of the areas surrounding our malls, with the creation of large multipurpose complexes highly synergistic with the retail operations present in our asset. Since 2010, Iguatemi has already carried out 20 exchange of PSV for the construction of commercial, residential and hotel towers in the immediate area surrounding our malls (10 commercial towers totaling thousand sqm of private area, 7 residential towers totaling 60.7 thousand sqm of private area and 3 towers hotels), of which 13 towers are already in operation and 7 towers will be inaugurated in the upcoming years. With the economy recovery we should resume the exploration of this construction potential. We also count on the development carried out by third parties. In Brasília, for example, it is expected to deliver 160 thousand sqm of private area until 2019 around our assets. Finally, our assets also benefit from the structural development of the regions where we operate. In the beginning of 2018, for example, there were two relevant infrastructure movements in the city of São Paulo, as is the case of the inauguration of Chucri Zaidan avenue, which has been extended to João Dias avenue, facilitating the access of those who are located in the Santo Amaro region to the Market Place region. Capital structure strengthening: Besides the organic growth driven by the existing assets, strengthening our capital structure is key to enabling us to prepare for potential GLA expansions, whether via greenfields, brownfields or acquisitions. Investments (R$ million) (1) In this sense, we ended the year with a 2.96x net debt/ebitda ratio, versus 3.23x in 2016 and 3.35x in 2015, and we are confident that the new level of the Selic interest rate and the cash generated by our operations will be enough to further reduce leverage in E (1) Net cash from investment activities formal accounting (accrual basis), adjusted by financing activities. A still contained investment level in 2018 is part of this strategy to strengthen the Company's balance sheet. This year, we will continue to focus on reinvestments (maintenance of our malls) and development of the projects announced in our pipeline, such as I Fashion Outlet Santa Catarina, but additional investments related to approvals and licensing of projects not yet disclosed and more relevant, yet occasional, works in some assets of the portfolio (as is the case of the exchange of the chiller equipment of Iguatemi São Paulo) will be also necessary. 6

7 Greenfields: Currently, we have two greenfield projects already announced, both outlets: (i) I Fashion Outlet Santa Catarina, in the city of Tijucas, with delivery scheduled for 4Q18; and (ii) I Fashion Outlet Nova Lima, in Minas Gerais, a state where we are not present yet, scheduled for The outlet business model is one of our growth vectors, as we believe it to be a market that has not yet been fully explored. I Fashion Outlet Santa Catarina is with its commercialization at a very advanced stage and will host the main fashion retailers, such as Inbrands, Restoque, Arezzo, among others. Acquisitions: Currently, with greater space in the balance sheet, the Company is better positioned to negotiate the acquisition of stakes in assets of the portfolio or even stake in new assets. On February 7 th, 2018, for example, we announced the acquisition of a 0.31% stake in Shopping Patio Higienópolis from Agropart Imobiliária Ltda., leading to a total stake of 11.5% in the asset, which delivered a NOI of R$ million in The transaction amounted R$ 4.6 million, paid in cash, and considering a constant NOI without future improvements, represented a 2017 NOI multiple of 12.7x (cap rate of 7.9 %) guidance: As announced on January 23 rd, 2018 and in line with our expectations described above, we expect our net revenue to increase between 2% and 7% in 2018, our EBITDA margin to be between 75% and 79% and our CAPEX needs to reach between R$ 170 and 220 million Guidance Net revenues growth 2 7% EBITDA margin 75 79% CAPEX (R$ million) (1) (1) Accrual basis. Includes CAPEX for maintenance, reinvestments, projects and capitalization. Carlos Jereissati Filho CEO, Iguatemi Empresa de Shopping Centers S.A. 7

8 MAIN INDICATORS 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). Non-accounting figures have not been reviewed by the external auditors. Financial indicators 4Q17 4Q16 Chg. % Chg. % Gross Revenues (R$ 000) 218, , % 805, , % Net Revenues (R$ 000) 185, , % 692, , % EBITDA (R$ 000) 150, , % 540, , % EBITDA Margin 81.0% 77.7% 3.3 bps 78.1% 78.0% 0.1 bps Net Profit (R$ 000) 64,218 49, % 218, , % Net Margin 34.6% 27.1% 7.5 bps 31.6% 24.6% 7.0 bps FFO (R$ 000) 90,947 76, % 325, , % FFO Margin 49.0% 41.5% 7.5 bps 47.0% 40.8% 6.2 bps Performance indicators 4Q17 4Q16 Chg. % Chg. % Total GLA (sqm) 746, , % 746, , % Owned GLA (sqm) 454, , % 454, , % Average Owned GLA (sqm) 454, , % 454, , % Total GLA, malls (sqm) 701, , % 701, , % Owned GLA, malls (sqm) 419, , % 419, , % Number of malls (1) % % Total sales (R$ 000) (2) 4,018,835 3,896, % 13,272,439 12,719, % Same-stores sales (SSS) 2.5% 0.0% 2.5 bsp 3.5% 1.1% 2.4 bsp Same-area sales (SAS) 3.1% 0.2% 2.9 bsp 4.9% 2.0% 2.9 bsp Same-store rentals (SSR) 4.4% 6.5% -2.1 bsp 5.8% 6.4% -0.6 bsp Same-area rentals (SAR) 4.1% 6.2% -2.1 bsp 5.9% 6.9% -1.0 bsp Occupancy cost (% of sales) 11.2% 11.5% -0.2 bsp 12.1% 12.0% 0.1 bsp Occupancy rate 94.2% 93.4% 0.8 bsp 93.6% 93.5% 0.1 bsp Net delinquency rate 0.2% 0.2% 0.0 bsp 1.8% 2.8% -1.0 bsp (1) Considers Iguatemi Esplanada and Esplanada Shopping as one asset. (2) 1Q16 data adjusted for Iguatemi Caxias. 8

9 IGUATEMI PORTFOLIO Portfolio City Iguatemi Interest Total GLA (sqm) Iguatemi GLA (sqm) Iguatemi São Paulo São Paulo 58.45% 47,322 27,660 JK Iguatemi São Paulo 64.00% 34,957 22,372 Pátio Higienópolis São Paulo 11.20% 34,100 3,819 Market Place São Paulo % 26,940 26,940 Iguatemi Alphaville Barueri 78.00% 31,312 24,423 Iguatemi Campinas Campinas 70.00% 73,492 51,444 Galleria Campinas % 33,146 33,146 Iguatemi Esplanada (1) Sorocaba 55.37% 64,360 35,636 Iguatemi São Carlos São Carlos 50.00% 22,323 11,162 Iguatemi Ribeirão Preto Ribeirão Preto 88.00% 43,648 38,410 Iguatemi Rio Preto São José do Rio Preto 88.00% 43,649 38,411 Proprietary Area (2) Sorocaba % 3,678 3,678 Southeast Sub-total 69.10% 458, ,102 Iguatemi Porto Alegre Porto Alegre 36.00% 59,302 21,349 Praia de Belas Porto Alegre 37.80% 47,205 17,843 Iguatemi Florianópolis Florianópolis 30.00% 21,189 6,357 Iguatemi Caxias Caxias do Sul 8.40% 30,324 2,547 South Sub-total 30.44% 158,020 48,096 Iguatemi Brasília Brasília 64.00% 32,302 20,673 Federal District Sub-total 64.00% 32,302 20,673 I Fashion Outlet Novo Hamburgo Novo Hamburgo 41.00% 20,115 8,247 Power Center Iguatemi Campinas (3) Campinas 77.00% 32,422 24,965 Outlet and Power Center Sub-total 63.22% 52,537 33,212 Malls Sub-total 59.72% 701, ,084 Market Place Tower I São Paulo % 15,685 15,685 Market Place Tower II São Paulo % 13,395 13,395 Iguatemi São Paulo Tower São Paulo 58.45% 4,469 2,612 Iguatemi Porto Alegre Tower Porto Alegre 36.00% 10,692 3,849 Towers Sub-total 80.34% 44,241 35,541 Total 60.94% 746, ,625 (1) Considers Iguatemi Esplanada and Esplanada Shopping as one asset. (2) Area owned by Iguatemi in Esplanada, held through a subsidiary. (3) Power Center Iguatemi Campinas is contiguous to the Iguatemi Campinas mall. 9

10 OPERATIONAL PERFORMANCE (at 100% of the asset) Portfolio Minimum Rental + Overage + Temp. Rent (R$ 000) (1) 4Q17 4Q16 Chg. % Chg. % Iguatemi São Paulo 62,832 56, % 197, , % JK Iguatemi 24,493 23, % 77,670 76, % Pátio Higienópolis (3) 31,190 27, % 99,844 91, % Market Place 9,888 8, % 30,736 29, % Torres Market Place 5,561 6, % 23,830 24, % Iguatemi Alphaville 9,375 11, % 32,109 33, % Iguatemi Campinas 34,069 34, % 108, , % Galleria 7,268 6, % 22,786 22, % Iguatemi Esplanada (2) 22,560 20, % 70,468 65, % Iguatemi São Carlos 3,801 3, % 11,930 11, % Iguatemi Ribeirão Preto 6,695 7, % 23,672 23, % Iguatemi Rio Preto 8,335 8, % 27,904 27, % Iguatemi Porto Alegre 34,112 31, % 111,640 96, % Praia de Belas 15,152 14, % 50,888 48, % Iguatemi Florianópolis 9,356 9, % 29,143 28, % Iguatemi Caxias 7,748 8, % 25,425 27, % Iguatemi Brasília 15,079 12, % 45,423 42, % I Fashion Outlet Novo Hamburgo 4,727 3, % 13,062 11, % Boulevard Iguatemi % 3,453 3, % Total 313, , % 1,006, , % Portfolio Parking (R$ '000) 4Q17 4Q16 Chg. % Chg. % Iguatemi São Paulo 8,895 8, % 31,103 30, % JK Iguatemi 5,655 5, % 20,867 21, % Pátio Higienópolis (3) 3,782 4, % 15,599 14, % Market Place 6,014 6, % 23,568 24, % Torres Market Place Iguatemi Alphaville 3,934 4, % 15,162 14, % Iguatemi Campinas 8,884 8, % 29,634 27, % Galleria 2,636 2, % 9,560 9, % Iguatemi Esplanada (2) 5,855 4, % 19,797 16, % Iguatemi São Carlos 1, % 3,488 2, % Iguatemi Ribeirão Preto Iguatemi Rio Preto % % Iguatemi Porto Alegre 7,678 6, % 26,600 20, % Praia de Belas 4,728 3, % 16,666 14, % Iguatemi Florianópolis 1,493 1, % 5,315 5, % Iguatemi Caxias 1,522 1, % 5,880 5, % Iguatemi Brasília 3,054 3, % 11,034 11, % I Fashion Outlet Novo Hamburgo Boulevard Iguatemi % % Total 65,383 63, % 235, , % (1) Numbers do not include the linearization effect. (2) Considers Iguatemi Esplanada and Esplanada Shopping as one asset. (3) Revenues for Pátio Higienópolis were calculated using the cash accounting regime until 4Q16 and using accrual regime from 1Q17 onwards. 10

11 SALES AND RENTALS Total sales reached R$ 4.0 billion in the quarter, a 3.1% growth versus 4Q16. For the year, sales grew 4.3% versus 2016, reaching R$ 13.3 billion. The best performing segments were jewelers, services and home furnishings. The results for the Bookstore and Stationery segment are still unfavorable. Same-area sales (SAS) were up 3.1% in the quarter, while same-store sales (SSS) were of 2.5%. Same-store rents (SSR) were up 4.1% and same-area rents (SAR) grew 4.4%. Rental revenues, calculated at 100%, were R$ million in 4Q17 (+5.0% versus 4Q16) and R$ 1,006.5 million in 2017 (+5.8% versus 2016). Parking revenues reached R$ 65.4 million in the quarter (+3.5% versus 4Q16) and R$ million in the year (+6.6% versus 2016). The assets that stood out positively in the quarter were: Iguatemi São Paulo: 10.3% growth in rental revenues mainly due to the increase in minimum rent, as a result of the automatic adjustments for inflation in rental contracts and the inauguration of new stores along the year such as Hermes, Fendi, Valentino, Chanel expansion, Zapalla, among others. Pátio Higienópolis: 13.8% growth in rental revenues mainly explained by a greater number of stores leased throughout the year, automatic adjustments for inflation in rental contracts and temporary leases. In addition, in early 2017 we brought the mall accounting process to Iguatemi's SAP, resulting in the migration from cash basis to accrual basis. Market Place: 10.4% increase in rental revenues mainly due to an increase in the minimum rent, as a result of the automatic adjustments for inflation in rental contracts and maturation of the new stores resulting from the repositioning of the tenant mix made in recent years. Iguatemi Esplanada: 10.7% growth in rental revenues driven by the increase in minimum rent and overage, as result of a tenant mix repositioning that led to the inauguration of more than 50 new stores in 2017, mostly exclusive to the region, such as Farm, Tramontina, Adidas, AloBebe, Burger King, Casa do Pão de Queijo, Cinépolis VIP, among others. Iguatemi Brasília: 16.4% growth in rental revenues driven by the increase in minimum rent, resulting from the inauguration of relevant stores throughout 2017, such as JoMalone, Tania Bulhões, Pedrarte, among others. I Fashion Outlet Novo Hamburgo: 25.8% growth in rental revenues driven by the increase in rentals, due to the improvement of the tenant mix, which included the relocation of existing stores and new openings such as OFF Premium (Animale, Farm), UpKids, Brooksfield, Cocrs, among others. Temporary leases were also a highlight in the quarter, boosted by two events: Car Fair of Alegria Radio and The Glass House Fair. The negative highlights in the quarter were: Iguatemi Alphaville: 18.1% decrease in Revenue from Rent in the quarter due mainly to a mismatch in the Minimum Rent Revenue caused by the collection of revenues typically collected in the 4Q, which this year were charged in 3Q17. 11

12 Iguatemi São José do Rio Preto: 7.1% drop in rental revenues due to the tenant mix adjustment in the mall, which is still undergoing its maturation process, and a smaller overage versus 4Q16. Iguatemi Ribeirão Preto: 4.4% drop in rental revenues due the tenant mix adjustment in the mall, which is still undergoing its maturation process. OCCUPANCY RATE AND OCCUPANCY COST Average occupancy rate for the portfolio in the quarter was 94.2%, a marginal increase compared to the last quarter. Regarding the occupancy cost, was 11.2% for the period. Occupancy Rate 94.0% 94.0% 93.8% 93.3% 93.4% 93.0% 93.1% 93.3% 94.2% Occupancy Cost 12.7% 12.5% 12.7% 11.7% 11.0% 11.5% 11.5% 12.0% 11.2% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 DELINQUENCY For the fourth quarter, net delinquency was 0.2%. In the year our net delinquency was 1.8% ECONOMIC AND FINANCIAL PERFORMANCE Consolidated P&L (R$ 000) 4Q17 4Q16 Chg. % Chg. % Gross Revenue 218, , % 805, , % Taxes and Discounts -32,589-29, % -113, , % Net Revenue 185, , % 692, , % Costs and Expenses -46,044-41, % -175, , % Other Operational Revenues 10, % 22,289 18, % Equity Gain (Loss) in Subsidiaries % 1, % EBITDA 150, , % 540, , % EBITDA Margin 81.0% 77.7% 3.3 bsp 78.1% 78.0% 0.1 bsp Depreciation and Amortization -26,729-26, % -106, , % EBIT 123, , % 434, , % EBIT Margin 66.6% 63.3% 3.4 bsp 62.7% 61.8% 0.9 bsp Financial Revenue (Expenses) -42,118-51, % -171, , % Income Tax & Social Contribution Tax -17,415-15, % -43,543-39, % Net Profit 64,218 49, % 218, , % Net Margin 34.6% 27.1% 7.5 bsp 31.6% 24.6% 7.0 bsp FFO 90,947 76, % 325, , % FFO Margin 49.0% 41.5% 7.5 bsp 47.0% 40.8% 6.2 bsp 12

13 GROSS REVENUE Iguatemi s gross revenues in the fourth quarter of 2017 were R$ million, a 2.5% increase compared to the same period of For the full year this line presented a 4.7% increase. Gross Revenues (R$ 000) 4Q17 4Q16 Chg. % Chg. % Rentals 148, , % 551, , % Management Fees 13,760 11, % 48,166 43, % Parking 40,968 40, % 147, , % Other 15,249 18, % 57,846 62, % Total 218, , % 805, , % Rental revenues, comprising minimum rent, overage and temporary rent, was 3.1% higher than in 4Q16 and represented 67.9% of total gross revenue. Rental Revenues (R$ 000) 4Q17 4Q16 Chg. % Chg. % Minimum Rental 122, , % 475, , % Percentage Revenues (Overage) 10,336 11, % 31,481 33, % Temporary Rentals 15,732 14, % 44,901 43, % Total 148, , % 551, , % This year-on-year increase in Rentals compared to 4Q16 mainly reflects: Minimum rent: 3.4% increase mainly due to (i) the positive performance of the São Paulo and Brasília assets; (ii) the maturation of Iguatemi Porto Alegre expansion; and (iii) adjustments in rental contracts. Overage: 8.0% drop explained by the increase in minimum rentals was above sales performance. Temporary rent: 8.5% growth due to an increase in media and marketing contracts for the period. Management fees increased 23.8% versus 4Q16 due to higher rental revenues and the change in accounting regime to accrual basis from cash basis in January 2017 in some assets. Parking revenues grew 2.4% versus 4Q16, mainly due to (i) readjustments in parking tariffs placed along the last twelve months; and (ii) the maturation of the expansions inaugurated in the past quarters, consequently attracting greater movement to the malls. The other line presented a negative variation of 15.3% in the quarter and 8.0% in the year mainly due to the end of the key money recognition for JK Iguatemi. DEDUCTIONS AND TAXES Deductions and taxes totaled R$ 32.6 million, an increase of 11.3% compared to 4Q16, mainly explained by the increase of the discounts throughout It is worth noting that when compared to 3Q17, discounts were sequentially stable as a 13

14 proportion of gross revenue. In the year, Deductions and Taxes totaled R$ million, an increase of 12.2% compared to NET REVENUES Net revenue in 4Q17 was R$ million, 1.1% more than in 4Q16. In 2017, net revenues reached R$ million, a 3.6% increase versus COSTS OF RENTALS, SERVICES AND ADMINISTRATIVE EXPENSES The Company delivering a Costs and Expenses line in 4Q17 of R$ 46.0 million (excluding Depreciation and Amortization), representing a 11.4% increase compared to the same period of last year. In 2017, this line amounted R$ million (+5.0% versus 2016). Costs and Expenses (R$ 000) 4Q17 4Q16 Chg. % Chg. % Rent and Services Costs 29,641 32, % 121, , % Expenses 16,403 8, % 53,535 46, % Administrative Expenses 16,359 8, % 53,275 44, % Stock Options Plan % 66 1, % Pre-operational % % Sub Total 46,044 41, % 175, , % Depreciation and Amortization 26,729 26, % 106, , % Total 72,773 67, % 281, , % This quarter rent and services costs decreased 10.0% when compared to 4Q16, largely due to processes improvements and contracts revisions related to parking. In general, expenses increased by 95.6% in the quarter due to the increase in administrative expenses, which were 101.7% above 4Q16. This increase is explained by the achievement of the corporate goals, leading to the need for a greater bonus provisioning. It is important to remember that the comparison basis of 4Q16 is weak, since in 2016 not all goals were met and, consequently, a reversal of part of the bonus provisioning was made in that quarter. If we exclude this effect in both years administrative expenses would have grown 30.4% in the quarter. With the maturity of our share-based remuneration (stock option plan) issued in 2012, this line came zeroed. Pre-operational expenses presented a positive change of R$ 113 thousand against 4Q16 due progress of projects in our pipeline. OTHER OPERATIONAL REVENUES (EXPENSES) The Company generated Other Operational Revenues (Expenses) of R$ 10.5 million in the quarter and R$ 22.3 million in the year mainly due to the resale of retail spaces in our malls. 14

15 Other Operational Revenues (Expenses) (R$ 000) 4Q17 4Q16 Chg. % Chg. % Exchange of PSV 0 0 n/a 0 0 n/a Other 10, % 22,289 18, % Other Operational Revenues (Expenses) 10, % 22,289 18, % NET FINANCIAL REVENUES (EXPENSES) Iguatemi had net financial expenses of R$ 42.1 million, 17.7% below the amount presented in 4Q16. The lower financial revenues in the quarter is explained by reduction in interest rates and, mainly, by the settlement of a related party debt in 4Q16, which caused the Company to cease to have an asset in US dollar (such debt positively impacted the Financial Revenue in 2016 due to foreign exchange variation). On the other hand, the smaller financial expenses are explained by a reduction in interest rates and the prepayment of the BNDES debt. Net Financial Revenues (Expenses) (R$ '000) 4Q17 4Q16 Chg. % Chg. % Financial Revenues 13,037 22, % 54,045 83, % Financial Expenses -55,155-73, % -225, , % Net Financial Revenues (Expenses) -42,118-51, % -171, , % INCOME TAX AND SOCIAL CONTRIBUTION TAX (CURRENT AND DEFERRED) In 4Q17, the income tax and social contribution tax totaled R$ 17.4 million, 13.8% higher than 4Q16 and resulting in a tax rate of 21.3%. In 2017, this line was 11.6% higher than 2016, representing a tax rate of 16.6%. NET PROFIT AND FFO Iguatemi had a net profit of R$ 64.2 million in the quarter, 29.0% above 4Q16, with net margin of 34.6%. FFO reached R$ 90.9 million, a 19.2% increase versus 4Q16, with FFO margin of 49.0%. In 2017, net profit and FFO grew 33.3% and 19.3% respectively, compared to EBITDA EBITDA reached R$ million, a 5.4% growth versus 4Q16, and R$ million in 2017, a 3.7% growth versus EBITDA margin was 78.9% in the quarter and 78.1% in the year, surpassing the top of our guidance. 15

16 EBITDA (R$ 000) 4Q17 4Q16 Chg. % Chg. % Net Profit 64,218 49, % 218, , % (+) Income & Social Contribution Taxes 17,415 15, % 43,543 39, % (+) Depreciation and Amortization 26,729 26, % 106, , % (+) Financial Expenses 55,155 73, % 225, , % ( ) Financial Revenues -13,037-22, % -54,045-83, % EBITDA 150, , % 540, , % Net Revenues 185, , % 692, , % EBITDA Margin 81.0% 77.7% 3.3 bsp 78.1% 78.0% 0.1 bsp DEBT Iguatemi ended the fourth quarter of 2017 with a total debt of R$ 2,092.4 million, with average duration of 4.8 years and with average cost of 103.2% of the CDI, to which 85.4% of our total debt is linked. The cash position totaled R$ million, currently remunerated by an average rate of 102.4% of the CDI. As a result, our net debt decreased 4.3% versus 3Q17 to R$ 1,603.0 million, leading to a net debt/ebitda multiple of 2.96x for year-end 2017, below 2016 levels (3.23x). Debt breakdown by index Debt breakdown by modality Others TJLP 3% 0% TR 11% Real Estate Credit 16% Debentu res 30% CRI 54% CDI 86% Cost of debt 11.75% 11.5% 12.75% 12.3% 13.75% 14.25% 14.25% 13.4% 13.7% 13.5% 14.25% 14.25% 14.0% 14.3% 14.4% 14.0% 14.25% 13.75% 12.7% 10.5% 12.25% 8.6% 10.25% 8.25% 7.00% 7.2% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Iguatemi SELIC Tenor of the debt (years) Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 16

17 Consolidated Figures (R$ 000) 12/31/ /30/2017 Chg. % Total Debt 2,092,436 2,236, % Cash and Cash Equivalents 489, , % Net Debt (Cash) 1,603,020 1,675, % EBITDA (LTM) 540, , % Net Debt/EBITDA 2.96x 3.14x - Cost of Debt (% of CDI) 103.2% 103.9% -0.7 bps Average Debt Term (years) Total Debt Breakdown (R$ 000) 12/31/2017 % 09/30/2017 % TJLP 0 0.0% 95, % TR 235, % 285, % CDI 1,786, % 1,759, % Others 70, % 95, % Short-term 198, % 242, % Long-term 1,893, % 1,993, % DEBT AMORTIZATION TIMETABLE (R$ mn) 66 Financing Debentures CASH FLOW Iguatemi s adjusted cash position (considering the balance for cash, cash equivalents and financial investments) decreased by R$ 71.2 million versus the end of the previous quarter (3Q17), to R$ million. The main changes are explained below: Net Cash from Operations (1), R$ million; Net Cash from Investment Activities (2), R$ 28.0 million negative; Cash from Financing Activities (3), R$ million negative. 17

18 Adjusted Cash Flow (R$ mn) ,0-195, Initial Balance (3Q17) Operational Investments Financing Final Balance (4Q17) (1) Cash Flow from Operations adjusted by R$ 10.8 million negative, for interest payment; (2) Cash from Investments adjusted by R$ 82.6 million negative, classified in the Financing Activities; (3) Cash Flow from Financing Activities adjusted as per Note 1. INVESTMENT PROPERTIES In December 2017 we updated the fair value of our properties in operation, and properties under development. On December 31 st, 2017 this amount (for the equity interest owned by Iguatemi) was R$ 10.5 billion or 16.7% higher than 2016 yearend (2) (1) Value of 100% of malls (R$ mn) 5,849 7,340 8,678 10,531 11,401 12,613 14,955 16,406 19,328 Iguatemi stake (R$ mn) 3,288 4,181 5,258 6,118 6,862 7,647 8,287 9,027 10,534 Total GLA ( 000 sqm) Owned GLA ( 000 sqm) Number of shares 79,255 79,255 79, , , , , , ,612 Stock price NAV per share Base date: 12/31/2017. (1) Includes operating malls and expansions inaugurated until 4Q17. (2) Stock Split in The fair value of the properties for investment was estimated using the discounted cash flow method. All the calculations are based on the analysis of the physical qualifications of the properties under study coupled to a range of information researched in the market, used to determine the fair value of the projects. The following assumptions were used for the valuation: (i) (ii) Real discount rate of 7.3% to 9.9% p.a.; and Real perpetuity growth rate: 2.0% p.a. (iii) Does not consider greenfield projects (I Fashion Outlets) 18

19 (R$ million) 10,534 8,560 6,957 Market Cap EV NAV Market Cap. s and EV s base date: 12/31/2017. INVESTMENTS Investments (R$ million) (1) Q17 2Q17 3Q17 4Q Acquisitions Other investments (2) Total (1) Accrual basis. Considers CAPEX for maintenance, reinvestment, projects and capitalization. Investments made in the quarter were related to maintenance/reinvestment capex in the malls of the portfolio, as well as investments related to the outlet projects already announced, minor works in existing malls and capitalization. We ended the year with total investments of R$ 98.1 million, in line with the guidance provided in the beginning of 2017 of R$ 80 to 130 million. PROJECTS IN PROGRESS GREENFIELD PROJECTS The figures below refer to 100% of each project. Greenfields I Fashion Outlet Santa Catarina I Fashion Outlet Nova Lima Planned opening 4Q Total GLA (sqm) Iguatemi stake 54% 54% 19

20 LANDBANK In the medium/long term, we expect Iguatemi to continue growing in a robust fashion, as can be seen from the size of our land bank. This landbank of approximately 1.0 million square meters (214 thousand sqm of GLA and 727 thousand sqm of potential floor area) is important, because it demonstrates the growth potential that can be captured by Iguatemi (in addition to the new opportunities of greenfields and outlets that we expect to be announcing over the coming years). Mall Mall (GLA sqm) Real Estate (PA sqm) % Iguatemi Iguatemi São Paulo 5, % Iguatemi Campinas - adjacent site (2) - 502, % Iguatemi Campinas - Boulevard - 19, % Iguatemi Porto Alegre 3,000 32, % Iguatemi Porto Alegre - adjacent site (1) 22,000 29, % Iguatemi Esplanada 28,500 27, % Praia de Belas 5, % Galleria 22,429 44, % Market Place % Iguatemi São Carlos 20,000 15, % Iguatemi Brasília 10, % Iguatemi Alphaville 12, % Iguatemi Ribeirão Preto 20,500 35, % I Fashion Outlet Novo Hamburgo 12,500 6, % Iguatemi Rio Preto 21, % Subtotal, malls in operation 183, , % I Fashion Outlet Santa Catarina (1) 15,034 8, % I Fashion Outlet Nova Lima (1) 15,000 8, % Subtotal, malls under development 30,034 16, % Total 213, , % (1) Sites exchanged. (2) Exchange option + preference. Note: Figures are indicative. Projects may be altered, changing the coefficients of use, and usage of the construction potential. 20

21 STRATEGY AND GUIDANCE Iguatemi remains confident in its strategy of having the best assets in the best locations, focusing on the South and Southeast regions of Brazil, and Brasília, areas with the highest purchasing power and potential per capita consumption in the country, with a target public predominantly in the A and B income groups this public is less susceptible to adverse macroeconomic situations, and more demanding in terms of quality of products and services offered. Since 2009, Iguatemi has consistently met or exceeded its guidance for profit and growth published to the market. Similarly for 2017, besides a scenario of a still recovering economy, we delivered a net revenues growth of 3.6%, in line with the guidance of 5% to 10% growth, and an EBITDA margin of 78.1%, above the 73% to 77% guidance. The capex of R$ 98.1 million for 2017 was also in line with the range set by the guidance. For 2018, we expect to grow net revenues between 2% to 7%, reach an EBITDA Margin between 75% and 79% and spend between R$ 170 and 220 million in CAPEX Guidance 2017 Real 2018 Guidance Net revenues growth 2 7% 3.6% 2 7% EBITDA margin 73 77% 78.1% 75 79% CAPEX (R$ million) (1) (1) Accrual basis. Includes capex for maintenance, reinvestments, projects and capitalization. Growth in the Company s GLA: We have almost tripled the size of the Company since its IPO, in early Today we have 455 thousand sqm of owned GLA. With the two Premium Outlet projects announced, our owned GLA will increase to approximately 488 thousand sqm by Owned GLA ('000 m²) (Pre IPO) Additional GLA ( ) Sale of Boulevard Rio (2012) Current GLA Total Announced GLA until

22 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Mar-12 Dec-12 Sep-13 Jun-14 Mar-15 Nov-15 Aug-16 May-17 Feb-18 EARNINGS RELEASE CAPITAL MARKETS Iguatemi shares are listed on B3 s Novo Mercado, under the ticker IGTA3, and are part of the Ibovespa and IBx-100 indexes. The table below presents our largest stockholders and the free float, with date base of 12/31/2017: Stockholding structure Number of shares % of total Jereissati Participações 89,642, % Treasury 96, % Others 86,872, % Total 176,611, % Iguatemi stock price ended 2017 at R$ Currently ten sell-side analysts have active coverage on Iguatemi shares. IGTA (1) Iguatemi x Ibovespa (Feb/2007 Current) Closing Price (12/31/2017) R$ Higher price in 4Q17 R$ Lower price in 4Q17 R$ IGUATEMI IBOVESPA Appreciation in 4Q % Appreciation in % Number of shares 176,611, Market Cap. (12/31/2017) R$ 6,956,730,057 - Average daily liquidity in 4Q17 R$ 35,903,026 (1) Source: Bloomberg, base date: 12/31/2017. HUMAN RESOURCES We have an experienced management team, and we consistently seek to align the interests of our management and employees with those of our stockholders, through mechanisms of variable remuneration: Iguatemi bonus plan: This program is linked to meeting short-term budget and operational targets. All our employees are eligible. The amount distributed to each employee is linked to the Company s Key Performance Indicators KPIs (On-Going Business, Projects Under Development and Future Growth) and to individual KPIs. Our policies in relation to employees are based on retention of qualified employees, creation of management tools to improve their efficiency, creation of additional opportunities for internal promotion, efficient training programs, assessment of performance and appropriate remuneration. 22

23 We revisited our Mission, Vision and Values, and also created our own method for evaluating and managing our people. We believe that this tool, together with the bonus plan pegged to KPIs, will help Iguatemi meet its growth target without diminishing the identity and values that make Iguatemi one of the 50 most valuable brands in Brazil. On December 31 st, 2017, Iguatemi had 314 employees. ENVIRONMENTAL PROGRAMS For more than 10 years, Iguatemi - always concerned with social and environmental aspects - has been implementing sustainability actions that save water and reduce consumption of energy. Highlights are: Actions to reduce energy consumption Migration to the Mercado Livre Market (at present, nine of our malls are supplied by Mercado Livre ) Continuous replacement of lamps and equipment by new, more efficient technologies (chillers, LED,...) Automation of systems to improve the efficiency of malls (illumination, air conditioning...) Actions to save water and increase self-sufficiency Artesian wells Water and sewerage treatment stations Installation of water saving equipment (aerators, toilet bowls, water-saving valves,...) Other initiatives We develop our logistics processes (for example, recycling or selective collection) always taking the environment into account. Each process is based on a vision, on the basis of which objectives, targets and action plans are constructed. Currently, four malls have an advanced composting system: Iguatemi São José do Rio Preto, Iguatemi Porto Alegre, Iguatemi Campinas and Iguatemi Esplanada. In each mall a different model was adopted and studies are being conducted to define the best model to be adopted in the group's other assets. In addition, we practice social actions, supporting cooperatives, which benefit needy communities with the work of separations of wastes and re-use of raw materials. EXTERNAL AUDITING SERVICES: COMPLIANCE WITH CVM INSTRUCTION 381/2003 As from the first quarter of 2017 Iguatemi and its subsidiaries began using the auditing services of Ernst & Young Auditores Independentes S.S.. The Company s activity in contracting with our independent auditors of any services not related to external auditing is based on the principles that preserve the external auditor s independence. These internationally accepted principles are: (a) the auditor must not audit his own work; (b) the auditor must not exercise a management function in his client; and (c) the auditor should not promote his client s interests. 23

24 Note: Non-financial data, such as GLA, average sales, average rentals, occupancy costs, average prices, average market prices, EBITDA, NOI and pro-forma cash flow have not been reviewed by our external auditors. The Company is committed, by the Commitment Clause in its by-laws, to arbitration in the Market Arbitration Chamber. About Iguatemi Empresa de Shopping Centers S.A. Iguatemi Empresa de Shopping Centers S.A. ( Iguatemi ) is one of the largest full service companies in the Brazilian shopping mall sector. Its activities cover the whole range of the business, from conception, through planning, to development and management of regional shopping malls, outlets and mixed-use real estate complexes with office towers. Iguatemi has equity holdings in 17 shopping malls, 1 premium outlet and 4 commercial towers, with a total GLA of 746 thousand sqm; and an owned GLA of 455 thousand sqm (based on the percentage owned by Iguatemi at each mall). Iguatemi participates in the management of 16 of its 17 shopping malls, its premium outlet and its office towers. It also has 3 greenfield premium outlet projects in progress. Iguatemi s stock is traded on the Novo Mercado of the São Paulo Stock Exchange (BM&F Bovespa). IR Team: Cristina Betts CFO Roberta Noronha IR and Integrated Planning Director Carina Carreira IR Coordinator Arnon Shirazi IR Analyst Tel.: +55 (11) / 6877 ri@iguatemi.com.br Any statements on the outlook for the business, estimates for operational or financial results, or the growth outlook for Iguatemi, that may be expressed in this report are projections, and as such are based exclusively on the expectations of Iguatemi s management in relation to the future of the business, and its continuing access to capital to finance the Company s business plan. Such statements are subject, substantially, to changes in market conditions, government rules, competitive pressures, the performance of the sector and the performance of the Brazilian economy, among other factors, and are, therefore, subject to change without prior notice. 24