1Q19 1 INVESTMENT HIGHLIGHTS OUR STRATEGY 2 WHY CENCOSUD? - - PowerPoint PPT Presentation

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Corporate Presentation 1Q19

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INVESTMENT HIGHLIGHTS

OUR STRATEGY

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WHY CENCOSUD?

1 Figures as of March 2019 2 Market Cap calculated as of December 2018 using the stock closing price of CLP 1,178 and constant Exchange rate of CLP 678.53 per US$ 3 BCS stands for Bolsa de Comercio de Santiago. Figures as of December 2018 using close stock price CLP 1,178 and a constant Exchange rate of CLP 678.53 per US$.

LEADING SOUTH AMERICAN MULTI-FORMAT RETAILER1

PREMIER BRAND PORTFOLIO WITH INTEGRATED MULTI-FORMAT STRATEGY

UNPARALLELED GROWTH TRACK RECORD HOLDING VALUABLE LAND BANK SEASONED MANAGEMENT TEAM LISTED ON BCS3 RATED IG BY MOODY’S AND FITCH PRIVILEDGED POSITION TO BENEFIT FROM IMPROVED ECONOMIC ENVIRONMENT

 5 Business Divisions & 5 countries  Leadership positions across the region  Market Cap US$ 5,0 bn2  131,613 employees  1,114 retail stores + 54 shopping centers  3.6 mm sqm of retail space + 701 thousand sqm of shopping centers GLA to third parties  Sound Corporate Governance with SOX standards:  9 Seasoned Board Members  3 Paulmann Family members  2 Independent members  Board of Directors Committee:  Total of 3 members; 2 independent  Listed on BCS (2004)  46.3% Free Float  Daily Avg. Trading Volume: US$ 7.4 mm  Rated IG by Moody’s and Fitch  Member of the EME DJSI  Market leadership positions across the region  Peru:  133,510 sqm of land bank  La Molina Project  Argentina:  3.1 mm sqm land bank

 Recognized brand portfolio

 6.0 mm sqm of land bank to fuel future growth across the region

TOTAL SELLING SPACE (‘000 sqm)

1 2 3 4 5 6

1 2 3 4 5 6

3.629 4.238 4.387 4.417 4.418 4.401 4.292 4.279 2012 2013 2014 2015 2016 2017 2018 2019

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CENCOSUD: A PAN-REGIONAL MARKET LEADER

COLOMBIA

3RD SUPERMARKET 2ND HOME IMPROVEMENT

CHILE

2ND SUPERMARKET 2ND HOME IMPROVEMENT 2ND SHOPPING CENTERS 2ND DEPARTMENT STORES

PERU

2ND SUPERMARKET 4TH DEPARMENT STORES

ARGENTINA

2ND SUPERMARKETS 1ST HOME IMPROVEMENT 1ST SHOPPING CENTERS 4TH SUPERMARKET Leadership position in Northeast, Minas Gerais, and Río de Janeiro

BRAZIL

Note; Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria). As of March 2019, the JV agreement for the conjoint development of Financial Services in Peru with Scotiabank was approved JV JV JV JV

47% 20% 14% 11% 8% 53% 21% 1% 22% 3% 5

REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS UNIT AND GEOGRAPHY

Note: Figures converted to US$ using a constant exchange rate of CLP 660.46 per US$ 1 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. These figures include CLP 92.475 mm of extraordinary gains from the sale of 51% of Financial Service in Peru.

• 2. Figures include new IFRS16 accounting rule of operating leases as of January 1 2019.

3 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14.123 mn and Adjusted EBITDA was US$ 1,077 mn, using end of period exchange rate of CLP 678,53 per US$. Argentina represented 19.3% of total revenues and 19.2% of total Adjusted EBITDA.

REVENUE BREAKDOWN BY GEOGRAPHY (LTM as of Mar 2019) US$ 14,546 mm3

• ADJ. EBITDA BREAKDOWN BY GEOGRAPHY (LTM as of Mar 2019)

US$1,133 mm1,2,3 (7.8% Adjusted EBITDA margin)

• 249 supermarkets
• 36 home improvement stores
• 80 department stores
• 33 shopping centers
• F.S.: JV with Scotiabank
• 284 supermarkets
• 51 home improvement stores
• 22 shopping centers
• Financial Services
• 203 supermarkets
• 3 different regions
• F.S.: JV with Bradesco
• 94 supermarkets
• 11 department stores
• 4 shopping centers
• Financial Services
• 96 supermarkets
• 10 home improvement stores
• 2 shopping centers
• F.S.: JV with Colpatria

CHILE ARGENTINA BRAZIL PERU COLOMBIA

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STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS

Note: Figures converted to US$ using a constant exchange rate of CLP 660,46 per US$ 1 Graph excludes the “Others” segment, which contributes US$ 10 mm in revenues and –US$ 120 mm in Adj. EBITDA. Adj. EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. 2 Revenues and Adjusted EBITDA from Shopping Centers don’t include related party transactions 3 Mg = Adjusted EBITDA margin 4 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14,123 mn and Adjusted EBITDA was US$ 1,077 mn, using end of period exchange rate of CLP 678.53 per US$.

REVENUE BREAKDOWN BY BUSINESS (LTM as of Mar 2019)1,4 US$ 14,546 mm ADJUSTED EBITDA BY BUSINESS (LTM as of Ma 2019)1 US$ 1.113 mm (7.8% Adjusted EBITDA margin)2,3,4 Retail accounted for 95% of Revenues US$10,311mm US$1,743mm US$1,742mm Complementary Business US$185mm

10.6% mg

Retail accounted for 63%

• f Adjusted EBITDA

US$53mm

3.0% mg

US$ 558mm

5.4% mg

US$293mm

78.4% mg

US$168mm

45.9% mg

Complementary Business

Supermarkets Home Improvement Department Stores Shopping Centers Financial Services 6

US$365mm US$373mm

42% 22% 16% 5% 15%

71% 3% 12% 12% 2%

1,0 1,4 2,1 3,8 4,7 5,7 9,3 8,3 9,4 11,5 13,9 15,7 16,5 16,6 15,7 15,8 14,8 14,5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM Marzo 2019 7

PROVEN GROWTH TRACK RECORD

1 Revenues denominated in US$, calculated with an exchange rate of CLP 660.46 per US$ 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)

• Total selling space grew from 2.8 mm sqm

in 2010 to 4.3 mm sqm in 2019.

• Revenues increased from US$6.1 bn in

2010 to US$9.6 bn in 2019

(CAGR: 4.6%) (CAGR: 5.0%)

1976 1982 1988 1993 Opening of first supermarkets

IPO BCS1 IPO NYSE

Consolidation in the Chilean market Internationalization process

Peru

Consolidation and synergies

Delisting NYSE

Peru

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STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE

1 Debt denominated in US$ using end of period exchange rate of 31 March 2018 2 Amortization schedule is presented net off gains/losses from mark to market of derivatives, overdrafts and Comex debt (excluding forwards). 3 Debt by currency after cross-currency swaps.

• Cencosud announced the IPO for its Shopping Centers division in

Chile, Peru and Colombia. Proceeds (USD 1 bn) will be use to pay-off debt.

• Investment Grade rating since 2011
• Fitch Ratings:

BBB- (stable)

• Moody’s:

Baa3 (negative)

DEBT BY CURRENCY (AFTER CCS) 3 DEBT AMORTIZATION SCHEDULE (US$ MM)1,2 NET FINANCIAL DEBT EVOLUTION

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1Q19 1Q18

CLP + UF 73% USD 21% Otras Latam 8% CLP + UF 73% USD 18% Otras Latam; 7%

190 613 186 57 756 35 715 53 1.045 224 41 15 203 350

19 20 21 22 23 24 25 26 27 28 29 30 41 45

4,4 3,5 3,7 3,3 3,6 3,8 3,9 5,4 4,6 3,4 3,7 3,3 3,2 3,7 3,9 5,0

2012 2013 2014 2015 2016 2017 2018 03.2019

Deuda Financiera Neta (USD mm) NFD/EBITDA Ajustado (veces)

EXPERIENCED MANAGEMENT TEAM

CORPORATE GOVERNANCE AND BOARD OF DIRECTORS

• Sound corporate governance SOX Standards:
• 8 seasoned Board members:
• 3 Paulmann Family members
• 2 Independent members
• Board of Directors’ Committee (CMF1):
• Roberto Philipps
• Richard Büchi (Independent)
• Mario Valcarce (Independent)

Heike Paulmann K. Horst Paulmann K. Peter Paulmann K. Alejandro Pérez Jorge Pérez Julio Moura Roberto Philipps Mario Valcarce

Independent members

Hans Eben #

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Sebastián Conde Matias Videla

Ricardo Bennett

Dag Loebenstein Antonio Ureta Patricio Rivas TBD

CEO

Years in Cencosud

6 13 17 12 16 22 22 24

German Cerrato

CEO: Chief Executive Officer. HR: Human Resources. CFO: Chief Financial Officer.. SM: Supermarkets Manager; DS: Department Stores Manager. FS: Financial Services. SC: Corporate Shopping Centers Manager. Legal: General Counsel.

• 2. Mr. Gebhardt and Mr. Conde have been for less than a year in Cencosud. Home Improvement

managemer turned in his resignation effective as of January 31, 2019. His replacement is yet to be determined. .

MANAGEMENT TEAM2

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INVESTMENT HIGHLIGHTS

OUR STRATEGY

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THE THREE PILLARS OF OUR STRATEGY

 Financial Strengthening

• Commitment with IG
• IPO Shopping Centers
• Non-core assets sale

 Strategic Alliances

• JVs with Scotiabank, Colpatria and

Bradesco

• Sustainable relationship with

suppliers  Big Data & Analytics  Private Labels and Regional Synergies  Sustainability  Talent  Health & Wellness

• Organic
• “Free of”
• Health

STRONG VALUES  Digital Transformation and Omni- channel

• “Whatever you want, whenever you

want, however you want, wherever you want”

• IT & Logistics Investments

 Strategic Planning

• Area in charge of

coordinating and materializing planning for each business division  Procurement

• Close to the business
• Regional team
• Efficiency, process and

people  Process Standardization and Centralization

• SAP Unification
• Robotic Process Automation
• CSC: Continue Growing

 Organic Growth

• Remodeling
• Omni-channel
• New projects

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GROWTH TRENDS EFFICIENCY AND PRODUCTIVITY

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INVESTMENT HIGHLIGHTS OUR STRATEGY

LOOKING AHEAD

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GUIDANCE AND INVESTMENT PLAN FOR 2018

• For 2019, the company expects revenues of US$15,194 million, based
• n an acceleration of all business units, due to the focus set on

efficiencies through the optimization of processes, mataining our higher service to costumer.

• Adjusted EBITDA margin of 7.7%. (include 51% sale of Banco

Cencosud in Peru)

• Our Capex base plan includes investments of US$ 300 million, which

could be revised upwards if the Company reduced its leverage level.

Working Spotlights

• During 2018, 11 stores were opened and

the remodeling of another 28 was completed, according to the Reinforcement

• f Value Proposition and Store

Competitiveness Plan.

• Omnichannel development, innovation and

leadership in new trends.

• The Company made significant progress

increasing efficiencies and lifting service standards, and continued to execute its Financial Strengthening and Business Profitability Plan.

CAPEX DISTRIBUTION BY INVESTMENT TYPE US$ 300 mm

50% 33% 17%

Remodelaciones y crecimiento orgánico Teconología, Logística y Omnicanalidad Mantenimiento y Capex Recurrente

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