Cencosud April 2016 Corporate Presentation | Contents | 2 - - PowerPoint PPT Presentation

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Cencosud April 2016 Corporate Presentation | Contents | 2 - - PowerPoint PPT Presentation

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Fourth Quarter Corporate Presentation Cencosud April 2016 Corporate Presentation | Contents | 2 Contents Investment Highlights Cencosud Snapshot Key Figures Strategy Corporate Governance Corporate Presentation |

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Fourth Quarter

Corporate Presentation

Cencosud

April 2016

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Corporate Presentation | Contents | 2

  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

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SLIDE 3
  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

Corporate Presentation | Contents | 3

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Investment Highlights

Core in food retailing business, more resilient to economic downturns Leading retailer in Latin America with the highest geographic diversification in the region Premier brand portfolio with high consumer recognition Committed Board of Directors and Seasoned Management Team Opportunity to continue expanding in markets with high growth and low penetration

Corporate Presentation | Investment Highlights | 4

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Corporate Presentation | Contents | 5

  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

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73,3% 6,4% 20,3%

Retailing Areas Financial Services Real Estate

96,2% 1,5% 2,3%

Retailing Areas Financial Services Real Estate

Source: ILACAD and US Census Bureau, figures as of December 2013

Retail Areas

Supermarkets , D-Stores & DYS

USD 11,329 MM USD 2,069 MM USD 1,481 MM

Support Businesses

Shopping Centers & Financial Services

1 Translated into USD at CLP/USD 710.16 2 Financial Services figures exclude Financial Services Chile. 3 Revenue and Adjusted EBITDA breakdown graphs exclude segment “Others” 4 Adjusted EBITDA excluding all one-off charges of CLP 789,505 million. 5 Shopping Centers figures only reflect revenues and adjusted EBITDA contributed by third party transactions.

Revenues Dec.2015 USD 15,477 MM1

Retail Areas

Supermarkets, D-Stores & DYS

Support Businesses

Shopping Centers & Financial Services

Adjusted EBITDA Dec.2015 USD 1,112 MM4

USD 349 MM USD 233 MM2 Others: USD 16 MM3

Corporate Presentation | Cencosud Snapshot | 6

Overview by Business

USD 268 MM 76.7% mg USD 84 MM2 36.0% mg Others: USD -209 MM3 USD 680 MM 6.0% mg USD 202 MM 9.8% mg USD 87 MM 5.8% mg

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Source: ILACAD and US Census Bureau, figures as of December 2013

Atlantic Coast

USD 2,369 MM USD 4,592 MM

Andean Region

1 Figures for FY 2015, translated into USD at end of period exchange rate (CLP/USD 710.16). 2 Figures from Chile exclude results from the Financial Service division after the completion of the Scotiabank transaction to jointly develop the business in May 1st, 2015. 3 Adjusted EBITDA excluding all one-off charges: CLP 105,038

Revenue Dec.2015 USD 15,477 MM1 Adjusted EBITDA Dec.2015 USD 1,112 MM3

USD 1,291 MM USD 1,401 MM USD 5,824 MM2

Corporate Presentation | Cencosud Snapshot | 7

Atlantic Coast Andean Region

  • 245 Supermarkets
  • 35 Home Improvement
  • 79 Department Stores
  • 25 Shopping Centers
  • JV Scotiabank
  • 286 Supermarkets
  • 50 Home Improvement
  • 22 Shopping Centers
  • 90 Supermarkets
  • 9 Department Stores
  • 4 Shopping Centers

USD 48 MM 3.8% mg USD 108 MM 7.7% mg USD 538 MM2 9.2% mg

  • 222 Supermarkets
  • Atacarejo format
  • 3 different regions
  • JV Bradesco
  • 101 Supermarkets
  • 10 Home Improvement
  • JV with Colpatria

USD 26 MM 1.1% mg USD 392 MM 8.2% mg

Overview by Country

37,6% 29,7% 15,3% 9,1% 8,3%

Chile Argentina Brazil Peru Colombia

48,3% 35,3% 2,3% 9,7% 4,4%

Chile Argentina Brazil Peru Colombia

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Source: ILACAD and US Census Bureau, figures as of December 2013 3rd SUPERMARKET 2nd HOME IMPROVEMENT 1st SUPERMARKETS 4th DEPARTMENT STORES 2nd SUPERMARKETS 2nd HOME IMPROVEMENT 2nd SHOPPING CENTERS 2nd DEPARTMENT STORES 4th SUPERMARKETS NORTHEAST (#2) MINAS GERAIS (#1) RIO DE JANEIRO (#3) 2nd SUPERMARKETS 1st HOME IMPROVEMENT 2nd SHOPPING CENTERS

Strong Brand Portfolio with High Consumer Recognition

Corporate Presentation | Cencosud Snapshot | 8

High and low end brands

Supermarkets Home Improvement Department Stores

Regional Presence / Market Position

HIGH INCOME CONSUMER MID-TO-LOW INCOME CONSUMER HIGH INCOME CONSUMER MID-TO-LOW INCOME CONSUMER

95 stores 944 stores

Shopping Centers

53 Shopping Centers

Financial Services

USD 1.812 bn Loan Portfolio

  • JV’s: Chile, Brazil &

Colombia

  • Cencosud: Peru &

Argentina

88 stores

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Fourth Quarter

15.4 15.5

A Development Story thru Organic Growth & Acquisitions

Corporate Presentation | Cencosud Snapshot | 9

Acquisitions & Revenues (USD bn)1

1982 1982 1976 1976 1988 1988 1993 1993 2000 2000 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2015 2015 2014 2014

OPENED THE FIRST SUPERMARKET IPO SANTIAGO STOCK EXCHANGE IPO NYSE

1 Figures translated into USD at end of period exchange rate as of December 2015 (CLP/USD 710,2).

14.8 13.1 10.9 8.9 7.9 8.8 5.4 4.5 3.6 2.0

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Fourth Quarter

73% 27%

Fixed Variable

A Development Story thru Organic Growth & Acquisitions

Corporate Presentation | Cencosud Snapshot | 10

2,0 3,1 3,7 6,3 4,7 4,3 3,2

2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2015 2015 2014 2014

Net Financial Debt Evolution (USD BN)1

1 Figures translated into USD at end of period exchange rate as of December 2015 (CLP/USD 710,2). 2 Considers only principal amortizations and excludes banking operations. 3 Net Financial Debt / Adjusted EBITDA. 2015 ratio calculated with figures as of December. In 4Q15 Fair Value of Derivatives was reclassified from “Other gains/losses” to “Net Financial Cost” and “Income/Loss from

foreign exchange variations”. 2014’ & 2015 ratios are comparable,

4 After CCS

Breakdown by Interest Rate4 Breakdown by Currency4 Leverage Ratio3 Amortization Schedule (USD MN)2

49% 15% 32% 1% 2% 1% CLP UF USD PEN BRL ARS

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045

250 250 125 125 224 224 49 49 203 203 778 778 17 17 1,217 32 32 696 696 47 47 37 37 200 200 37 37 14 14 76 76 350 350

2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2015* 2015*

2,6 2,7 4,6 3,1 3,4 3,7 3,3 2,8

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  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

Corporate Presentation | Contents | 11

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Income Statement

Corporate Presentation | Key Figures | 12 (In millions of Chilean pesos as of December 31st, 2015) 2015 2014 ∆ % 2015 2014 ∆ % Net revenues 3.048.854 3.014.833 1,1% 10.991.338 10.711.029 2,6% Cost of sales

  • 2.143.598 -2.177.047
  • 1,5%
  • 7.813.226 -7.827.432
  • 0,2%

Gross profit 905.256 837.785 8,1% 3.178.112 2.883.597 10,2% Gross margin 29,7% 27,8% 190 bps 28,9% 26,9% 199 bps Selling and administrative expenses

  • 682.708
  • 686.612
  • 0,6%
  • 2.675.486
  • 2.482.777

7,8% Other income by function 145.154 78.038 86,0% 210.521 114.438 84,0% Other gain (Losses)

  • 1.369 -1.648
  • 16,9%
  • 63.082 -6.515

868,3% Operating income 366.333 227.564 61,0% 650.065 508.743 27,8% Participation in profit of equity method associates 5.296 5.730

  • 7,6%

14.067 8.893 58,2% Net Financial Income

  • 75.981
  • 49.025

55,0%

  • 244.100
  • 173.548

40,7% Income (loss) from foreign exchange variations

  • 9.600
  • 3.657

162,5%

  • 116.743
  • 24.411

378,2% Result of indexation units

  • 6.113 -13.207
  • 53,7%
  • 22.009 -39.576
  • 44,4%

Non-operating income (loss)

  • 86.398 -60.158

43,6%

  • 368.784 -228.642

61,3% Income before income taxes 279.935 167.405 67,2% 281.281 280.101 0,4% Income taxes

  • 92.400 -66.908

38,1%

  • 58.540 -100.486
  • 41,7%

Profit (Loss) from continued operations 187.535 100.497 86,6% 222.740 179.615 24,0%

CONSOLIDATED INCOME DATA

Fourth Quarter Twelve-Month, ended December 31st

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  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

Corporate Presentation | Contents | 13

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Fourth Quarter

Regional Efficiency Measures

Short-term Roll Out Cost Savings of 120 Bps in SG&A/Sales Headcount reductions One-time severance payments Store level service unaffected

Corporate Presentation | Strategy | 14

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Fourth Quarter

Intervention of Underperforming Stores

Set-up of Performance Review Committee 120 Stores Across Our Geographic Footprint Review of Lease Agreements Changes to Assortment Headcount Review Possible Closure

Corporate Presentation | Strategy | 15

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Fourth Quarter

Omni channel Experience

Per Format Platform Development – Leverage on Current Wallet Share – Channel Innovation – Human Brands – Health & Wellness

Corporate Presentation | Strategy | 16

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Fourth Quarter

Strategic Focus On Brazil

Maneuvering Macro and Political – Deterioration – Slow Capture of Synergies - Margin Improvements – Atacarejo – SG&A

Corporate Presentation | Strategy | 17

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Corporate Presentation | Contents | 18

  • Investment Highlights
  • Cencosud Snapshot
  • Key Figures
  • Strategy
  • Corporate Governance

Contents

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Source: ILACAD and US Census Bureau, figures as of December 2013

2015

Corporate Presentation | Corporate Governance | 19

Ownership Structure Ownership Structure

The direct and indirect participation of Mr. Horst Paulmann Kemna and his immediate family in Cencosud S.A. is over 60.03% 60,0% 16% 1% 23% Controlling shareholders Chilean Pension Funds ADS Others As of December 31, 2015 Cencosud S.A. capital was made up of 2,828,723,963 common shares held by 1.710 shareholders

Corporate Presentation | Corporate Governance | 19

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Source: ILACAD and US Census Bureau, figures as of December 2013

  • Board elected on April 26th 2013 for the 2013-2016 period
  • New Board to be elected in 2016’s AGM, for a period of 3 years
  • Seasoned 9 Member Board:
  • 3 Family members: Horst Paulmann, Peter Paulmann and

Heike Paulmann

  • 2 Independent members: David Gallagher and Richard

Büchi

  • Mr. Wong presented his resignation on August 26th 2015
  • Board of Directors Committee:
  • Roberto Philipps
  • David Gallagher (Independent)
  • Richard Büchi (Independent)

Corporate Presentation | Corporate Governance | 20

Board of Directors

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Corporate Presentation | Corporate Governance | 21

  • Cencosud

has a CSR strategy for each business, adapted to each country they operate.

  • Common

and defined groups of interest

  • Commitments

to each stakeholder

  • Programs

that build internal and external brand value

Employees Suppliers Community Environment Customers

Corporate Social Responsibility

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Corporate Presentation | Corporate Governance | 22

Corporate Social Responsibility

ENVIRONMENT CUSTOMERS EMPLOYEES SUPPLIERS COMMUNITY HOME IMPROVEMENT SUPERMAKETS DEPARTMENT STORES

WASTE MANAGEMENT REUSABLE BAGS HEALTHY NUTRITION LABOR INCLUSION Elderly, Disability DEVELOPMENT OF SMALL SIZE SUPPLIERS SEDEX JUMBO CIRCUS CORSO WONG WASTE MANAGEMENT REUSABLE BAGS HEALTHY CONSUMPTION LABOR INCLUSION Quality of Life - Work

DEVELOPMENT OF SMALL SIZE SUPPLIERS SUSTAINABLE COLECTIONS

PARIS PARADE WASTE MANAGEMENT ECO EASY LABOR INCLUSION SEDEX “LEVANTEMOS CHILE” CHALLENGE, A roof for my country

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The information contained herein has been prepared by Cencosud S.A. (“Cencosud”) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this presentation are subject to change without notice and Cencosud is under no obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is qualified in its entirety by reference to more detailed information included in the preliminary offering memorandum. Cencosud and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This presentation may contain statements that are forward-looking subject to risks and uncertainties and factors, which are based on current expectations and projections about future events and trends that may affect Cencosud’ s business. You are cautioned that any such forward-looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. Corporate Presentation | Disclaimer | 23

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Marisol Fernández León IR Manager Phone +562 2959 0545 mariasoledad.fernandez@cencosud.cl Natalia Nacif Senior IR Analyst Phone +562 2959 0368 natalia.nacif@cencosud.cl

Corporate Presentation | IR Contact Information |

Upcoming Events

Cencosud announces First Quarter 2016 Results Schedule Wednesday, May 25 1Q16 Earnings Conference Call Thursday, May 26 Southern Cone & Andean Opportunities Conference Buenos Aires, Argentina, May 11-12

  • 11th. Annual J.P. Morgan Global

Consumer and Retail Conference London, May 17-18 Valentina Klein IR Analyst Phone +562 2200 4305 valentina.klein@cencosud.cl