Fourth Quarter
Corporate Presentation
Cencosud
2015
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
Fourth Quarter
Corporate Presentation
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 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
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
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
assumptions on which these forward-looking statements are based, many of which are beyond our control.
3 Corporate Presentation www.cencosud.com
Retailing P etailing Power er
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
D Bn Bn)
Cencosud snapshot
*
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%
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)
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
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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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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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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1Q15 Highlights
fueled by Supermarkets and Home Improvement.
territory with gross profit gains.
SSS in Food retail and Home Improvement.
drives Adj. EBITDA growth.
transaction.
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Food Retail and D-Stores leading top line growth
swings in the COP and BRL.
currency pass thru and better pricing
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Food Retail in Brazil Undergoing High Competitive Pressures
SSS & revenue contraction from Brazilian supermarkets.
performance management
according to guided by management.
develop improved commercial strategy.
management to come
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Consolidated Revenue Evolution
unfavorable currency swings in Colombia and Brazil.
except Brazil.
traction on better product mix and recovering construction industry in Bogota area.
Consolidated Adjusted EBITDA Evolution
in Peru, Brazil and Argentina.
generation on new store openings across its footprint, labor contingencies in Argentina and migration to new product mix in Colombia. . Figures in CLP million
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Revenue Evolution Adjusted EBITDA Evolution
line gains in the division.
Growth.
SSS gains.
slowing economy lead to negative SSS.
Figures in CLP million
SSS evolution by country (local currency)
margin and curbed SG&A.
margin and SG&A cuts.
positive SSS and stable gross margin.
headcount in Colombia. Colombia margins remained stable
303 813
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Figures in CLP million
Home Improvement
markets led by Argentina.
from Argentina on labor contingencies and accounting changes at Blaisten, collective bargaining agreements and one off in Chile.
Department Stores
management.
working capital needs.
34.143
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Figures in CLP million
Shopping Centers
explained by retroactive lease collection for antenna space and renegotiation of lease agreements with Ripley.
real estate taxes paid in Chile and Argentina partially offset by higher occupancy rates in Chile, Argentina & Peru.
Financial Services
portfolio.
revenues and Ebitda.
higher cost of funding
40.243
36.173 28.542
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Effective Tax Rate
4,217 million (FUT effect)
effect in the 1Q15 for the next 2 years
due to tax reform
Conciliation
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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)
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CLP CLF USD BRL COP PEN ARS Fixed Variable
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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
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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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