Covenants Harmonization November 2011 Content 1. Cencosud 2. - - PowerPoint PPT Presentation

November 2011

Covenants Harmonization

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• 1. Cencosud
• 2. Outstanding bonds and current debt covenants
• 3. Covenant changes

Content

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Chile

 Sales June-11: 3.09 bn  Ebitda June-11: US$ 338.5 mm  Assets: US$ 7.7 bn

Argentina

 Sales June-11: US$ 2.12 bn  Ebitda June-11: US$ 177.1 mm  Assets: US$ 2.4 bn

Brazil

 Sales June-11: US$ 1.57 bn  Ebitda June-11: US$79.8 mm  Assets: US$ 2.2 bn

Colombia

 Sales June-11: US$ 38.8 mm  Assets: US$ 0.2 bn

Peru

 Sales June-11: US$ 604 mm  Ebitda June-11: US$ 41.6 mm  Assets: US$ 1.4 bn

Sales LTM*: US$ 14.14 bn Equity: US$ 5.94 bn EBITDA LTM*: US$ 1.19 bn Assets**: US$ 13.55 bn

* Note: LTM 2Q 2011 **Note: Does not include banking assets Exchange rate: $468,15

Leading multi-format retailer in Latin America

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Sustained growth during the past decade...

2007 2006 2005 2004 2003 2002 2000 1993 1988 1982 1976

1st Jumbo, Santiago 1st Jumbo, Buenos Aires Argentina

2008 2009

Source: Cencosud *Note: Does not include banking assets

2010

We have begun a new cycle of growth

1.433 13.162 4.876 2001 2005 2010 1.427 12.201 4.913 2001 2005 2010

Sales and Assets Evolution* (US$ mm)

CAGR

+27% x 8.6

SALES ASSETS

+28% x 9.2

CAGR

2011

Exchange rate at year end

Share price evolution

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Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP; figures for 2Q 2010 and 2011 in IFRS

+ 35% + 20%

Sales evolution (US$ bn)

31% + 20%

… that has yielded extraordinary results …

EBITDA evolution (US$ bn)

5,0 5,9 8,1 9,4 10,5 12,2 5,5 7,4 2005 2006 2007 2008 2009 2010 1S 2010 1S 2011 412 494 689 667 767 1.039 485 637 2005 2006 2007 2008 2009 2010 1S 2010 1S 2011

Source: Bloomberg

500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11

172 stores 256 stores 137 stores

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… and opportunities to continue growing

49 stores 14 malls 0.8 mm cards

Colombia Supermarkets Home Improvement Department Stores Shopping Centers Financial Retail

0.9 mm cards 29 stores 35 stores 9 malls 2 mm cards 4 stores 66 stores 2 malls 0.3 cards

Peru Chile Brazil Argentina

631 82 35 25 4,0

Total

558 351 385 138 7 7 18 25 119 26 27 57 67 68 69 70 70 52 221 594 100 200 300 400 500 600 700 800 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 EBITDA 2008 17 115 48 268 99 117 117 99 81 80 819 39 41 230 98 62 336 365 251 167 240 200 400 600 800 1.000 1.200 1.400 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Otros 144 Bonos Jumbo Bonos Linea N° 443 EBITDA LTM

Source: Cencosud

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… and a long-term financing structure …

Duration increase Long-term financing Duration 7.44 Y Duration 4.67 Y Low refinancing risk Balance re-engineering process (144A / IFRS)

Amortizations as at Dec. 31st 2008 Amortizations as at June 30 2011

Revenues by business 2005 (US 4.91 bn)

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Source: Cencosud *Note: Does not include banking assets

Revenues by business – 2011 LTM (US 14.14 bn) 12.7 bn* in Assets 4.9 bn in Assets

… as well as a different asset mix in the portfolio

Home Improvement 13% Shopping Centers 2% Financial Services 3% Departament Stores 13% Supermarkets 69%

Home Improvement 13% Departament Stores 9% Shopping Centers 2% Financial Services 4% Supermarkets 72%

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• 1. Cencosud
• 2. Outstanding bonds and current debt covenants
• 3. Covenant changes

Content

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Outstanding bonds series

Series Line Outstanding amount Date of Issuance Maturity Date Redemption date Nominal rate Debt limit Year BCENC-A 443 UF 4,000,000 15-Mar-06 15-Mar-27 Mar-2011 / Par 4.25% Liabilities net of cash <1.5x 2005 BCENC- C UF 4,500,000 01-Jul-06 01-Jul-27 Jul-2011 / Par 4.10% BCENC- D UF 1,500,000 01-Jul-07 01-Jul-28 Jul-2012 / Par 4.00% Total UF 10,000,000 Series Line Outstanding amount Date of Issuance Maturity Date Redemption date Nominal rate Debt limit Year BCENC- E 530 UF 2,000,000 07-May-08 07-May-18 May-2013 3.50% Net Financial Debt <1.2x 2008 BCENC- F UF 4,500,000 07-May-08 07-May-28 May-2013 4.00% BCENC- J 551 UF 3,000,000 15-Jan-09 15-Oct-29 Oct-2018 5.70% BCENC- K $ 30,000,000,000 01-Mar-09 01-Mar-14 Non pre- payable 7.00% BCENC- L UF 1,000,000 28-May-09 28-May-15 May-2013 4.10% BCENC- N UF 4,500,000 28-May-09 28-May-30 May-2019 4.70% BCENC- O $ 54,000,000,000 15-Jun-11 01-Jun-31 Jun-2018 7.00% Total* UF 18,818,182

*Note: Considers a UF value of 22,000 CLP

Series Line Outstanding amount Date of Issuance Maturity Date Redemption date Nominal rate Debt limit Year BJUMB- B 268 UF 2,276,059 01-Sep-01 01-Sep-26 Non pre- payable 6.50% Financial debt < 1.3x 2001 Series Line Outstanding amount Date of Issuance Maturity Date Redemption date Nominal rate Debt limit Year 144A N/D USD 750,000,000 12-Jan-11 20-Jan-21 Par 5,50% No financial covenant 2011

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Current debt margin (borrowing power)

Line N° Debt limit Ratio as at June 2011 Debt margin (MM USD*) Year 268 Financial debt < 1.3x 0.65x 3.596 2001 443 Liabilities net of cash <1.5x 1.27x 1.270 2005 530 and 551 Net Financial Debt <1.20x 0.63x 3.157 2008 Figures in USD MM* June 2011 Cash 117 Callable liabilities 7.189 Financial liabilities 3.634 Equity 5.562 Liabilities net of cash 7.072 Net Financial Debt 3.517 Debt margin at June 2011: Maximum net of cash liabilities = 1.5 * 5,562 = US$ 8.34 BN Net of cash liabilities margin = US$1.27 BN Maximum Financial Debt = 1.3 * 5,562 = US$ 7.23 BN Financial Debt Margin = US$ 3.60 BN Maximum Net Financial Debt = 1.2 * 5,562 = US$ 6.67 BN Net Financial Debt Margin = US$ 3.16 BN

*Note: Exchange rate used = 500

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Content

• 1. Cencosud
• 2. Outstanding bonds and current debt covenants
• 3. Covenant changes

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• To have a set of covenants that will allow for continuous company growth (organic growth)
• To seize investment opportunities through inorganic growth (acquisitions)
• To have an appropriate debt margin (borrowing power) given the seasonal nature of the

business; intensive WC requirements

• To have an appropriate debt margin (borrowing power) to absorb exchange rate volatility
• The proposed covenant can be considered as conservative and has been validated by the

market in the last 7 placements (UF 18.8 MM)

• Cencosud has successfully gained access to the international markets, raising 750 million

USD in just one transaction (approx. 16.6 million UF)

• To simplify control and measurement by virtue of a single set of covenants

Reasons for changing the debt limit

Current Debt Level Line N°443: Liabilities net of cash /Equity < 1.5x Line N° 268: Financial Debt / Equity < 1.3x Proposed Debt Level Net Financial Debt / Equity < 1.2x