Corporate Presentation October 2016 Corporate Presentation | The - - PowerPoint PPT Presentation

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Corporate Presentation October 2016 Corporate Presentation | The - - PowerPoint PPT Presentation

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Corporate Presentation October 2016 Corporate Presentation | The Company | 2 Index The Company Strategy Opportunities by Country Financials Corporate Presentation | The Company | 3 Cencosud in the Region

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Corporate Presentation

October 2016

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SLIDE 2

The Company Strategy Opportunities by Country Financials

Index

2 Corporate Presentation | The Company |

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Cencosud in the Region

  • 283 Supermarkets
  • 51 Home Improvement
  • 22 Shopping Centers
  • Financial Services
  • 89 Supermarkets
  • 9 Department Stores
  • 4 Shopping Centers
  • Financial Services
  • 211 Supermarkets
  • Atacarejo format
  • 3 different regions
  • JV Bradesco
  • 102 Supermarkets
  • 10 Home Improvement
  • 2 Shopping Centers
  • JV Colpatria
  • 245 Supermakets
  • 35 Home Improvement
  • 78 Department Store
  • 25 Shopping Centers
  • JV Scotiabank

Since 2007 Since 1978 Since 1982 Since

2008

Since 2012

3 Corporate Presentation | The Company |

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SLIDE 4

Regional Presence / Market Share1

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

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

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

15 Brands 220 MM Clients 60 MM Tickets Monthly

4

137.400 Employees

Corporate Presentation | The Company |

  • 1. As of june 30th, 2016
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Relevant brand portfolio with high consumer awareness

5

930

Supermarkets

96 Home

Improvement

87

Department Stores

53

Shopping Center Brands focused

  • n high and

medium/low segments

Corporate Presentation | The Company |

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SLIDE 6

39.7% 27.9% 14.6% 9.5% 8.3% Chile Argentina Brasil Perú Colombia

Breakdown by Country: Revenues LTM1

6 Corporate Presentation | The Company |

Andean Region 6,424 USD MM 1,545 USD MM 1,341 USD MM Atlantic Coast 2,361 USD MM 4,526 USD MM

  • 1. Exchange Rates: June, 2016 (CLP/USD = 661,4)

USD 16,197 MM

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Atlantic Coast 26 USD MM 362 USD MM

53.8% 29.4% 2.1% 10.1% 4.6% Chile Argentina Brasil Perú Colombia

Breakdown by Country: Adjusted EBITDA1 LTM2

7

  • 1. Adjusted EBITDA: Corresponds to EBITDA +/- Exchange Variations +/- Asset Revaluation +/- Result of Indexed Units.
  • 2. Exchange Rates: June, 2016 (CLP/USD = 661,4)

Andean Region 662 USD MM 125 USD MM 56 USD MM

Corporate Presentation | The Company |

USD 1,231 MM

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72.5% 13.2% 10.2% 1.6% 2.3%

Supermercados Mejoramiento del Hogar Tiendas por Departamento Servicios Financieros Centros Comerciales

Breakdown by Business: Revenues LTM1

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  • 1. Exchange Rates: June, 2016 (CLP/USD = 661,4)
  • 1. Shopping Centers figure only reflect contribution by third parties

11,748 USD MM 2,134 USD MM 1,651 USD MM 26 USD MM 362 USD MM

Corporate Presentation | The Company |

USD 16.197 MM

Supermarkets Home Improvement Department Stores Financial Services Shopping Centers

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51.0% 14.1% 6.0% 7.7% 21.1%

Supermercados Mejoramiento del Hogar Tiendas por Departamento Servicios Financieros Centros Comerciales

Breakdown by Region: Adjusted EBITDA LTM1

9

  • 1. Exchange Rates: June, 2016 (CLP/USD = 661,4)
  • 1. Shopping Centers figure only reflect contribution by third parties

696 USD MM 193 USD MM 82 USD MM 105 USD MM 288 USD MM

Corporate Presentation | The Company |

USD 1.231 MM

Supermarkets Home Improvement Department Stores Financial Services Shopping Centers

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A story of sustained regional growth

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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 LTM 2T16

  • 1. Values using Exchange Rates at the end of each period

16.2

Corporate Presentation | The Company |

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Growth reflected in the size of our operations

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+70% 2016 2.386 2010 1.405 799 2010 2016 672 +19% 2010 234 2016 416 +77% Home Improvement Supermarkets +77% 2016 2,007 2010 1,136 Shopping Center1 Department Stores

Jun 2010 – Jun 2016 / Thousands M2 Surface

  • 1. Total M2 in shopping centers includes leases to related companies

Corporate Presentation | The Company |

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The Company Strategy Opportunities by Country Financials

12 Corporate Presentation | Focos Estratégicos |

Index

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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

  • wn resources

60% 22% 18%

Distribution by type of investment

Organic Growth and Renovation Technology, Logistics & Omnicanal Maintenance & Current Capex 13 Corporate Presentation | Strategy |

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Cencosud ADN

We define 6 key competences that build Culture

1. Costumer - 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

Happiness iness at Work and Pr Productiv ivit ity

Consumer

From m transac saction ion to emoti motion

Strategic Pillars – 1.Clients

14 Corporate Presentation | Strategy |

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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

15 Buy online and we deliver it Buy in the Store and we deliver it Buy online and pick up with your car Buy with your phone and we deliver it Buy online and pick it up in the nearest locker Buy online and pick up them from your closest Jumbo Corporate Presentation | Strategy |

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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 methodology 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

16 Corporate Presentation | Strategy |

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SLIDE 17

The Company Strategy Opportunities by Country Financials

17 Corporate Presentation | Opportunities by Country |

Index

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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

18 Corporate Presentation | Opportunities by Country |

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SLIDE 19

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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

Corporate Presentation | Opportunities by Country |

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SLIDE 20

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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 Costan Costaner era a pr projec

  • ject ex

expa pansion nsion

Opportunities by Country -Chile

Corporate Presentation | Opportunities by Country |

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Opportunities by Country - Perú

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

Corporate Presentation | Opportunities by Country |

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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 landbak and unrivalled locations Easy format showing 2-digit growth for the last 2 quarters

Corporate Presentation | Opportunities by Country |

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The Company Strategy Oportunities by Country Financials

23 Corporate Presentation | Financials |

Index

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Key Figures

Revenues (USD Bn)1

  • Adj. EBITDA (% Revenues)1
  • 1. Figures translated into USD at end of period exchange rate as of June 2016 (CLP/USD 661.4)
  • Adj. EBITDA (USD Mn) 1

268 260 254 234 281 2012 2013 2014 2015 13.8 15.3 16.2 16.8 16.2 2012 2013 2014 2015 2016 LTM Jun 2016 LTM Jun

  • Adj. EBITDA / M2

979 1,101 1,115 1,035 1,231 2012 2013 2014 2015 2016 LTM Jun 7.1% 7.2% 6.9% 6.2% 7.6% 2012 2013 2014 2015 2016 LTM Jun

24 Corporate Presentation | Financials |

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Financial Ratios

Interest Coverage Ratio

1.86x 1.32x 1.43x 1.51x 1.44x 2012 2013 2014 2015 4.6x 3.4x 3.7x 3.3x 3.2x 2012 2013 2014 2015 2016 LTM Jun 2016 LTM Jun

Total Liabilities / Equity

0.89x 0.58x 0.60x 0.58x 0.65x 2012 2013 2014 2015 2016 LTM Jun 3.73x 3.02x 2.90x 2.84x 3.27x 2012 2013 2014 2015 2016 LTM Jun

25 Corporate Presentation | Financials |

  • 1. Figures translated into USD at end of period exchange rate as of June 2016 (CLP/USD 661.4)

Debt / Adj.EBITDA1 Debt to Equity

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Financial Discipline: Commitment to investment grade

26

Fitch Ratings BBB - Moody’s Baa3

I

Decreasing Debt/

  • Adj. EBITDA1

II

Non-core assets divestiture

III

Stable Outlook

Feller Rate AA- Humphrey AA- Local Ratings International Ratings

  • 1. Excludes banking operarations Since 2014 Adj. EBITDA excludes Fair Value of Derivatives effect

4.6 3.4 3.7 3.3 3.5 3.2

2012 2013 2014 2015 2015 LTM Jun 2016 LTM Jun

 Executed  Executed  Executed

  • In progress
  • In progress
  • Divestiture of Pharmacies in Colombia and Perú
  • Divestiture (minority interest) of Marina Arauco Mall, Viña del Mar
  • Contract renegotiation of Colpatria, Colombia
  • Divestiture of improductive, non strategic land
  • Gas stations in Colombia

Corporate Presentation | Financials |

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SLIDE 27

164 127 234 214 52 780 18 1219 20 700 51 40 217 40 29 81 350 298 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2041 2045 Structured Debt Non Structured

Amortization Schedule ( USD Mn)

CLP & UF 78% USD 14% Others LatAm 8% Int. Bond 64% Local Bond 14% Banks 18% Others 4%

Debt USD 4,611 MM1

Fixed 69% Variable 31%

  • 1. As of June 30th, 2016
  • 2. USD exposure is net of cash dollar and is calculated after Cross Currency Swaps

Main features of Debt

Breakdown by Interest Rate Breakdown by type of issue Breakdown by Currency2

27 Corporate Presentation | Financials |

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Corporate Presentation

October 2016