Corporate Presentation Third Quarter 2016 Corporate Presentation - - PowerPoint PPT Presentation

1 Corporate Presentation |

Corporate Presentation

Third Quarter 2016

2 Corporate Presentation | 2

INDEX

Highlights Third Quarter Cencosud Snapshot Strategy Cencosud Financials Corporate Governance

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HIGHLIGHTS THIRD QUARTER

• Revenue expansion in local currency in all markets, except Brazil. Revenue

decreased 6.6% YoY in CLP as a result of the devaluation of the Argentine peso (38.3%), Peruvian sol (5.9%) and Colombian peso (4.3%).

• Increased traffic in Supermarkets Chile, and Department Stores Chile and Peru
• Better SSS performance in Chile, Argentina and Brazil when compared to 2Q16
• Despite currency devaluation, Adjusted EBITDA grew 11.5% and margin

expanded 100 bps, mainly driven by improved performance at most

• perations and a low comparison basis .
• Non recurring events resulting from the implementation of the strategy to

drive sustainable profitable growth:

• Divestiture of Teleticket in Peru
• Severance payments and provisions of inventory obsolescence in 3Q15.
• Net profit reached CLP 34,950 million, reflecting a CLP 64,851 million

increase due to better performance at most operations, the positive impact

• f the exchange difference and non-recurring events in 3Q15.

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INDEX

Highlights Third Quarter Cencosud Snapshot Strategy Cencosud Financials Corporate Governance

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CENCOSUD IN THE REGION

• 244 Supermarkets
• 35 Home Improvement
• 78 Department Stores
• 25 Shopping Centers
• JV Scotiabank
• 209 Supermarkets
• JV with Bradesco
• 89 Supermarkets
• 9 Department Stores
• 4 Shopping Centers
• 102 Supermarkets
• 10 Home Improvement
• 2 Shopping Centers
• JV with Colpatria
• 285 Supermarkets
• 51 Home Improvement
• 22 Shopping Centers

Since

2007

Since

1978

Since

1982

Since

2008

Since

2012

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Regional Presence / Market Position

3º SUPERMARKETS 2º HOME IMPROVEMENT 1st SUPERMARKETS 4th DEPARTMENT STORES

2º SUPERMARKETS 2º HOME IMPROVEMENT 2º SHOPPING CENTERS 2º DEPARTMENT STORES

4º SUPERMARKETS NORTHEAST (#2) MINAS GERAIS (#1) RIO DE JANEIRO (#3) 2º SUPERMARKETS 1º HOME IMPROVEMENT 2º SHOPPING CENTERS

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Opportunities by Country - Chile

• A country with a solid economy, growing

below its potential

• Key openings for our main brands
• Landbank of 2.7 mm sqm
• Full multiformat, 6 retail flags + shopping +

financial services

• Strong growth of the financial business

together with scotiabank

• Leaders in e-commerce food, strong growth

in non-food

• Costanera project expansion

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Opportunities by Country - Argentina

• We expect a change in the economy trend for

2017:

• Strong project pipeline, in our own land
• Closeness format at Jumbo
• The market is increasing its formality level
• The market is opening to imports
• We are leaders in e-commerce
• Consolidated team / strong local player

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Opportunities by Country - Brazil

• End of recession, growth from 2018
• Renowned brands, with history and

prestige in their markets

• We have a successful Atacarejo format,

with positive growth

• We have built a local team of excellent

level, acknowledged by the market

• Transformational initiatives in supply

chain, pricing, selection and efficiency

• Commercial synergies, improving margin

and competitiveness

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Opportunities by Country - Peru

• Political change, confidence in the country’s economy
• Higher growth and lower inflation expectations
• Young country: 2/3 of the population in full

production, savings and investment capacity

• Low penetration of the modern channel
• Potential for a 3 times growth of Paris share
• Excellent land bank
• Wong with an unbeatable positioning in the high

segment

• The best loyalty program - bonus
• Strong development of own brand

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Opportunities by Country - Colombia

• Consolidated team with experience in the local

market

• We grow more than our main competitors
• Omnichannel, e-commerce and telephone sales

development

• Profitability opportunity for our current assets
• Our brands are consolidating
• Great development potential together with

landbank and unrivalled locations

• Easy format showing 2-digit growth for the last 2

quarters

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87

Department Stores

96

Home Improvement

929

Supermarkets

53

Shopping Centers High and low end brands

Strong Brand Portfolio, with high consumer recognition

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Chile 41% Argentina 26% Brazil 15% Peru 10% Colombia 8%

Overview by Country: REVENUES

Revenues LTM in USD 16,012 MM Andean Region 6,529 USD MM 1,533 USD MM 1,341 USD MM Atlantic Cost 2,391 USD MM 4,218 USD MM

1Exchange rate: September, 2016 (CLP/USD = 658,0)

Revenues LTM in USD1

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Chile 55% Argentina 29% Brazil 1% Peru 10% Colombia 5%

Adjusted EBITDA LTM USD 1,261 MM Región Andina 690 USD MM 130 USD MM 58 USD MM Costa Atlántica 17 USD MM 366 USD MM

1 Exchange rate: September, 2016 (CLP/USD = 658,0) 2 Adjusted EBITDA: corresponds to EBITDA +/- Exchange variations +/- Assets Revaluation +/- Result of Indexed Units

EBITDA Ajustado2 LTM USD1

Overview by Country: Adjusted EBITDA

15 Corporate Presentation | Supermarkets 73% Home Improvement 13% Department Stores 10% Financial Services 2% Shopping Centers 2%

Overview by business: REVENUES

11,604 USD MM 2,061 USD MM 1,686 USD MM 266 USD MM 377 USD MM

1Exchange rate: September, 2016 (CLP/USD = 658,0). Segment “Others”, revenues: USD 18 MM. 2Shopping Centers figures only reflect contribution by third parties

Revenues LTM in USD1 Revenues LTM USD 16,012

MM

16 Corporate Presentation | Supermarkets 52% Home Improvement 14% Department Stores 6% Financial Services 8% Shopping Centers 20%

712 USD MM 194 USD MM 84 USD MM 106 USD MM 278 USD MM EBITDA Ajustado LTM USD1

1 Exchange rate: September, 2016 (CLP/USD = 658,0). Segment “ Others”, EBITDA: USD -113 MM. 3Shopping Centers figures only reflect contribution by third parties

Adjusted EBITDA LTM USD 1,261

MM

Overview by business: Adjusted EBITDA

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2,2 3,9 4,8 5,9 9,5 8,6 9,7 11,8 14,3 16,2 16,7 15,5

1976 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3Q16

16,0

LTM

1 Consolidated revenue values in USD MM using exchange rates at the end of each period.

A Develoment story thru Organic Growth & Acquisitions1

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INDEX

Highlights Third Quarter Cencosud Snapshot Strategy Cencosud Financials Corporate Governance

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Guidance and Investment Plan 2016 - 2019

Working Spotlights Organic Growth Plan

• 1. Cost Efficiency and Profitability
• 2. Omni-quality
• 3. Financial Strengthening
• 4. Shopping Centers IPO
• 5. Non-strategic assets divesting

For the period 2016-2019 investment contemplates US$ 2.500 million, to be financed mainly by the generation of own resources

60% 22% 18%

Distribution by type of investment

Organic Growth and Renovation Technology, Logistics & Omnichannel Maintenance & Current Capex

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CENCOSUD DNA

We define 6 key competences that build Culture

1. Customer - Centered 2. Individual talents at the service of the Team 3. Permanent evolution and challenges 4. Strong culture focused on People 5. Owner Mentality 6. Accountability 1. Promises generation 2. Focus on the experience as a central axis 3. Authority in relevant / available categories 4. Check out speed 5. Speed and impeccability in post sale service 6. CRM: knowledge and fidelization

Internal Client

Happine iness ss at Work and Pr Productiv ivit ity

Consumer

From t m transac saction ion to emo motion ion

Strategic Pillars – 1.Clients

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• 1. Sustainability & Entry to DJSI
• 2. Healthy Life
• 3. Omnichannel Strategy

Development

• 4. Fidelity & Datamining
• 5. Mobility

Strategic Pillars – 2.Trends

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• Corporate Strategy Plan

1. Review of the route and role of each business unit within the portfolio 2. Ensure capital allocation alignment 3. Same methology for the entire organization

• Productivity and Efficiency

1. Review of structures and headcount 2. Non-core assets and landbank divestiture 3. Inventory health (Aging) 4. Energy Efficiency 5. Organic growth 6. SG&A growing below income 7. Centralization of productive processes 8. Technology at the service of stores and costumers

• Program for Stores with Negative EBITDA
• Own Brands
• Regional Trade Synergies

Strategic Pillars – 3. Profitability

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INDEX

Highlights Third Quarter Cencosud Snapshot Strategy Cencosud Financials Corporate Governance

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CLP Y UF

Debt Composition

67% 33%

FIXED

DEBT BY CURRENCY (AFTER CCS) DEBT BY INSTRUMENT DEBT BY RATE (AFTER CCS)

70% 30% 75% 16% 9% 62% 14% 20% 4%

INTERNATIONAL BONDS OTHERS BANKS LOCAL BONDS CLP Y UF OTHER LATAM USD CLP & UF

3Q16 3Q15

65% 30% 5%

CLP & UF OTHER LATAM USD FLOATING

64% 13% 17% 6%

INTERNATIONAL BONDS OTHERS BANKS LOCAL BONDS FLOATING FIXED

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COMFORTABLE DEBT STRUCTURE

NET FINANCIAL DEBT EVOLUTION1 (USD BN) NET LEVERAGE (NFD/ADJUSTED EBITDA)

4.6 3.4 3.7 3.3 3.9 3.2

AMORTIZATION SCHEDULE (USD MN)

6.3 4.7 4.3 3.2 3.8 4.1

3Q15 3Q16

2012 2013 2014 2015

3Q15 3Q16

2012 2013 2014 2015 135 149 228 207 51 780 19 1,220 36 702 53 42 229 43 16 56 350 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045

1Figures translated to USD with end of period exchange rate. 3Q15 and 3Q16 translated using exchange rate as of September 2016.

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INDEX

Highlights Third Quarter Cencosud Snapshot Strategy Cencosud Financials Corporate Governance

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AFP 22% Controller 53% ADR 1% Retail 24%

Ownership Structure

As of September 30st, 2016 Cencosud S.A. capital was made up of 2.842.520.872 common shares held by 1.714 shareholders. The direct and indirect participation of Mr. Horst Paulmann Kemna and his immediate family in Cencosud S.A. is 53.1%

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Board of Directors

• Board elected on April 29th 2016 for the 2016-2019 period
• Seasoned 9 member Board:
• 3 family members: Horst Paulmann, Peter Paulmann y

Heike Paulmann

• 2 Independent members: Mario Valcarce and Richard

Büchi

• Board of Directors Committee:
• Roberto Philipps
• Mario Valcarce (Independent)
• Richard Büchi (Independent)

29 Corporate Presentation | 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

• pinions expressed in this presentation are subject to change without notice and Cencosud is under no
• bligation 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.

30 Corporate Presentation |

Contacts

Marisol Fernández IRO

Phone: +562 2959 0545 Mariasoledad.fernandez@Cencosud.cl

Natalia Nacif Senior Analyst IR

Teléfono: +562 2959 0368 Natalia.Nacif@Cencosud.cl

Valentina Klein Analyst IR

Phone: +562 2200 4395 Valentina.Klein@Cencosud.cl

Upcoming events

Santander XXI Latin America Conference

January 18 – 20 Cancun, Mexico

Credit Suisse Latin America Investment Conference

January 31 – February 2 Sao Paulo, Brazil