Cencosud 2015 Corporate Presentation | www.cencosud.com | 2 The - - PowerPoint PPT Presentation

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Cencosud 2015 Corporate Presentation | www.cencosud.com | 2 The - - PowerPoint PPT Presentation

Fourth Quarter Corporate Presentation Cencosud 2015 Corporate Presentation | www.cencosud.com | 2 The information contained herein has been prepared by Cencosud S.A. ( Cencosud ) solely for informational purposes and is not to be construed


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Fourth Quarter

Corporate Presentation

Cencosud

2015

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Corporate Presentation | www.cencosud.com | 2

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

  • r 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

  • f 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.

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3 Corporate Presentation www.cencosud.com

Retailing P etailing Power er

2015

936 Supermarkets; 2.4 mm sqm 53 Shopping Centers; 0.8 mm sqm 94 Home Improvement; 0.8 mm sqm 88 Department Stores; 0.4 mm sqm

Key ey Metrics etrics Revenue E enue Evolution

  • lution (USD

D Bn Bn)

Cencosud snapshot

*

  • Over 5.5 MM Cards Issued
  • 148,700 Employees
  • 800 MM Customers
  • 4,394,604 sqm of Selling Space
  • 1,117 Stores + 53 Malls

4.018 4.974 6.032 9.785 8.847 9.886 12.080 14.601 16.503 16.830 17.353 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CA CAGR R OF 15.8% F 15.8%

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4 Corporate Presentation www.cencosud.com

Cencosud is a leading multi-format retailer in South America

Underpenetrated Region Regional Footprint / Market Position

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

3rd Supermarkets

2nd Home Improvement

1st Supermarkets

4th Department Store

2nd Supermarkets 2nd Home Improvement 2nd Shopping Centers 2nd Department Stores 4th Supermarkets

Northeast Region (#2) Minas Gerais (#1) Rio de Janeiro (#3)

2nd Supermarkets 1st Home Improvement 2nd Shopping Centers

Source: Euromonitor

Sales Area Per Capita DYS (sqm/capita) Sales Area Per Capita Food Retail (sqm/capita) Sales Area Per Capita D-Stores (sqm/capita)

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5 Corporate Presentation www.cencosud.com

Cencosud a Development and Growth Story

Source: ILACAD and US Census Bureau, figures as of December 2013 1: this number includes shopping centers

  • 2. EBITDA is calculated as EBITDA minus revaluation of assets, indexation units and foreign exchange variations.

3: Net Financial Debt does not include debt related to Cencosud´s banking activities.

Acquisitions and Revenue (USD Billion)

2.2 4.0 4.9 6.0 9.7 8.8 9.9 12.0 14.6 16.5 16.8

Colombia

1,170 3.6x 192% 180% 89%

LTM 2015 2009

10,873,515 663,218

17.4

2015

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Corporate Presentation www.cencosud.com 6

The Cencosud Roadmap

Strategic Focus: Healthy Organization, Focus on Consumer The Business: Expense Control, Competitiveness Main Market Trends, Omni-Channel, Loyalty Program, Brand Building

Consumer Centric Strong Team Focus

Efficiency & Productivity

Sustainable Brands

Growth & Market Share

Bottom Line & Cash Generation

Loyalty Programs Competitive Edge Private Label with Perceived Value

Omni-Channel Speeding up E- Commerce

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Corporate Presentation www.cencosud.com 7

High Income Brands Low Income Brands

Excellence in Perishables Imported Products Quality in Service Promotional Pricing Quality on a Budget Proximity

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Corporate Presentation | www.cencosud.com | 8

1Q15 Highlights

  • Revenue expansion in all divisions mainly

fueled by Supermarkets and Home Improvement.

  • Department Stores SSS back to positive

territory with gross profit gains.

  • Colombia continues to deliver positive

SSS in Food retail and Home Improvement.

  • Significant expansion of gross margin

drives Adj. EBITDA growth.

  • Closed Scotiabank financial services

transaction.

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Food Retail and D-Stores leading top line growth

  • Robust SSS in Chile supermarkets.
  • Santa Isabel repositioning gaining additional speed
  • Stable gross margin with more efficient pricing strategy
  • Declining traffic trend broken
  • Further top line growth curbed by negative currency

swings in the COP and BRL.

  • D-Stores bouncing back from 2014 lows.
  • Positive SSS from Chile and Peru greenfield
  • Gross margin recovery following improved

currency pass thru and better pricing

  • Inventories in Check

Corporate Presentation | www.cencosud.com |

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Food Retail in Brazil Undergoing High Competitive Pressures

  • Depreciation of BRL and soft demand lead to negative

SSS & revenue contraction from Brazilian supermarkets.

  • SAP rollout yielding results in gross profit through better

performance management

  • Focus on profitability: EBITDA generation at around 2%

according to guided by management.

  • Management changes in Brazil laying ground to later

develop improved commercial strategy.

  • Leaner operations; Additional SG&A curbs & COGs

management to come

Corporate Presentation | www.cencosud.com |

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Consolidated Revenue Evolution

  • Revenue gains across all division despite

unfavorable currency swings in Colombia and Brazil.

  • Positive SSS across all markets and businesses

except Brazil.

  • Colombia Home Improvement recovering SSS

traction on better product mix and recovering construction industry in Bogota area.

Consolidated Adjusted EBITDA Evolution

  • Ebitda expansion on Supermarket improvements

in Peru, Brazil and Argentina.

  • Department Stores posting Ebitda expansion of
  • ver 100% on improved Chile performance.
  • Home Improvement booked a reduction in Ebitda

generation on new store openings across its footprint, labor contingencies in Argentina and migration to new product mix in Colombia. . Figures in CLP million

Corporate Presentation | www.cencosud.com |

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Results

By Business

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Revenue Evolution Adjusted EBITDA Evolution

  • Positive SSS in Argentina and stable currency led top

line gains in the division.

  • 13 Net Store Openings YoY or 1.6% selling space

Growth.

  • Chile recorded outstanding 1Q15 SSS performance
  • n recovering Santa Isabel.
  • Price investment strategy in Peru continues to yield

SSS gains.

  • Aggressive competitive scenario in Brazil and

slowing economy lead to negative SSS.

Figures in CLP million

SSS evolution by country (local currency)

Supermarkets

  • Peru Ebitda jumped 85.7% on expanding gross

margin and curbed SG&A.

  • Brazil Ebitda growth was fueled by expanding gross

margin and SG&A cuts.

  • Ebitda in Argentina posts expansion of 7.4% on

positive SSS and stable gross margin.

  • Chile and Colombia posted lower Ebitda generation
  • n labor contingencies in Chile and higher

headcount in Colombia. Colombia margins remained stable

303 813

Corporate Presentation | www.cencosud.com |

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Figures in CLP million

Home Improvement

  • Revenue up 19% on positive SSS across all

markets led by Argentina.

  • Ebitda for division dropped on greater SG&A

from Argentina on labor contingencies and accounting changes at Blaisten, collective bargaining agreements and one off in Chile.

  • Colombia continues to improve performance.

Department Stores

  • Gains in revenue on positive SSS in Chile and Peru.
  • Progress in EBITDA on improved pricing and currency

management.

  • Improved inventory management leading to reduced

working capital needs.

34.143

Corporate Presentation | www.cencosud.com |

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Figures in CLP million

Shopping Centers

  • Revenue growth in all markets; Chile mainly

explained by retroactive lease collection for antenna space and renegotiation of lease agreements with Ripley.

  • Shopping Center EBITDA contracted to higher

real estate taxes paid in Chile and Argentina partially offset by higher occupancy rates in Chile, Argentina & Peru.

Financial Services

  • Argentina and Peru lead in top line growth on greater

portfolio.

  • Lower risk in Brazil explains greater contribution to

revenues and Ebitda.

  • Lower EBITDA in most markets was the result of

higher cost of funding

40.243

  • 4.6%
  • 21.1%

36.173 28.542

Corporate Presentation | www.cencosud.com |

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Effective Tax Rate

  • Chile
  • Higher income tax rate of 22.5% vs. 20% in 1Q14
  • Non- Cash effect of un-claimable tax losses at a HoldCo level of CLP

4,217 million (FUT effect)

  • Brazil:
  • Badwill due to corporate reorganization
  • Non-Cash unrecoverable Tax Losses at our Brazilian Sub
  • Total Effect of CLP 6,559 million
  • Colombia
  • Higher income tax rate of 39% vs. 34% in 1Q14
  • Newly created wealth tax (non-deductible tax expense) as a one time

effect in the 1Q15 for the next 2 years

  • Accelerated depreciation of tax goodwill Higher income tax in Colombia

due to tax reform

  • Total effect of CLP 4,010 million

Conciliation

Corporate Presentation | www.cencosud.com |

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Financial Ratios

Cencosud estimates it can bring down its net financial leverage to under 3.0x by YE15

Net debt evolution (US$ bn) Net leverage (net debt / EBITDA) Breakdown by Rate (After CCS) Breakdown by Currency (After CCS)

Corporate Presentation | www.cencosud.com |

CLP CLF USD BRL COP PEN ARS Fixed Variable

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Corporate Presentation | www.cencosud.com | 18

Debt Amortization Schedule (USD million) as of March 2015

Chile Financial Services deal with Scotiabank materialized on May 1st 2015. Following reception of funds our liquidity position also improves substantially.

FINANCIAL DEBT USD MM Amortizations as of March 2015 Amortizations Proforma as of March 2015

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Chile food strategy yields above inflation SSS. Positive momentum in revenue across most division D-Stores recovering with some weak spots in April due to weather related factors. Leverage down closer to target as of 2Q15. Progress on Real Estate IPO and Costanera Center.

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First Quarter | www.cencosud.com | 20

Upcoming Events

Bank of America CalGems Conference Los Angeles, CA June 2 thru 4 Credit Suisse Annual Mid Summer Latam Conference New York, NY Aug 5 & 6 2Q15 Earnings Release August 28, 2015 After market 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 Ignacio Reyes Miranda Senior IR Analyst Phone +562 2959 0804 Ignacio.reyesmiranda@cencosud.cl