Disclaimer The information contained in this presentation has Cencosud and its respective subsidiaries. directors. been prepared by Cencosud S.A. ("Cencosud") for partners and employees accept any responsibility informational purposes only and should not be for any loss or damage of any kind arising from the construed as a request or an offer to buy or sell use of all or part of this material. securities and should not be construed as This presentation may contain forward-looking investment or other advice. No warranty. statements subject to risks and uncertainties and expressed or implied. is provided regarding the factors. which are based on current expectations accuracy. completeness. and reliability of the and projections about future events and trends information contained in this document. The that may affect Cencosud's business. You are opinions expressed in this presentation are subject cautioned that these prospects are not guarantees to change without prior notice and Cencosud has of future performance. There are several factors no obligation to update or keep updated the that may adversely affect the estimates and information contained in this document. The assumptions underlying these forward-looking information in this document is not intended to be statements. many of which are beyond our complete. control. 2
Relevant events of 01 the quarter
Cornershop & Uber Eats strategic alliance Cencosud and Cornershop signed a long-term agreement for Supermarkets and Home Improvement operations in Chile, Peru, Colombia and Brazil. • Allows Cornershop customers to shop at Easy supermarkets and stores without incurring a service charge; • Includes the technological integration of Cencosud and Cornershop to develop technology that offers the best experience to our customers in the region and developments that improve business efficiency; • Allows Uber and Uber Eats users to buy Rincon Jumbo products and prepared meals in supermarkets through its applications (including Argentina); • Includes investment in stores exclusively for e-commerce picking (Dark Stores) with the aim of continuing to provide the best service in physical stores and digital platforms. 4
Impact of COVID on our businesses Store Open/Close Status Stores SQm COVID Status June 30 Open Close Open Close • Supermarket and Home Chile Improvement stores are open Supermarket 1 240 7 592,351 8,332 throughout the region Home Improvement 37 0 332,077 0 Department Stores 28 51 114,941 264,051 Argentina • Department Supermarket 283 0 448,132 0 Stores begin Home Improvement 2 50 1 394,355 3,620 opening process in Brazil communities that are in the Supermarket 198 4 518,919 10,910 process of transitioning out of Peru locked-down status Supermarket 93 0 276,839 0 Department Stores 6 5 39,270 22,157 Colombia Supermarket 3 93 1 381,615 80 Home Improvement 4 10 0 82,320 0 1 Includes Supermarkets affected by the social crisis of 2019 2 Due to government restrictions. Home Improvement Argentina keeps 4 stores closed on Sundays 3 Outside of Bogotá there are some restrictions on closing stores on weekends 4 Due to government restrictions. Home Improvement keeps some stores closed on Sundays and / or holidays 5
Historical growth in the pandemic situation Supermarket APRIL MAY JUNE 2Q Supermarkets - April exhibited lower Chile 3.6% 14.4% 8.8% 8.9% post-buy panic sales than March. May, Argentina 57.2% 58.8% 44.6% 53.4% despite the Cyber Monday effect of 2019, Brazil 9.7% 7.5% 9.1% 12.5% had an increase in demand at the Peru 4.7% 14.2% 21.1% 13.4% regional level Colombia -4.3% 1.1% 5.3% 0.9% Home Improvement APRIL MAY JUNE 2Q Home Improvement - stores closed during March and most of April (in the Chile -0.9% 6.9% 14.8% 6.9% case of Colombia). During June, Easy's Argentina -29.0% 36.1% 46.7% 18.8% business achieved double-digit growth Colombia N.A -8.1% 14.5% 3.4% Department Stores APRIL MAY JUNE 2Q Department Stores - April and May all stores closed, beginning the gradual Chile N.A N.A -37.6% -37.6% opening in June Peru N.A N.A N.A N.A 6
Focus on working capital Inventory days by country - Supermarkets June 2020 June 2019 The focus on working capital continues to deliver Chile 33 33 improving results. In Supermarkets, inventory turnover in Non-food and Mass Consumption Argentina 55 51 (groceries and wine section) mainly reflect Brazil 42 55 disciplined purchases and higher demand, Peru 40 44 respectively. Colombia 51 59 7
Shopping Centers during the Covid-19 % of stores open during the pandemic Evolution of Occupancy Rate Third Parties Related Parties Occupancy rate 2Q20 1Q20 4Q19 3Q19 2Q19 % Openings SQm Revenues SQm Revenues Chile 91.6% 91.5% 91.5% 99.3% 99.4% Chile 5.9% 9.2% 77.9% 73.5% Argentina 88.7% 95.8% 96.5% 96.2% 97.9% 30.1% 21.4% 96.8% 98.1% Argentina Peru 98.5% 98.6% 98.6% 95.3% 95.0% 47.3% 56.4% 90.8% 98.2% Peru Colombia 94.6% 94.7% 95.0% 94.9% 94.3% 23.1% 52.0% 100.0% 100.0% Colombia CencoShop Cash Flow Variation Positive FCF despite the partial closure of During the quarter the Shopping Center shopping centers business was the most affected due to the 135,085 34,218 -22,783 restrictions required by national health & -93,821 100,867 safety. The % of openings both in m 2 and in sales impacted us as many third-party tenants were not considered essential for the 25,750 7,269 functioning of the community. Cash sh a as o of FCF of th the Cash sh a as o of Taxes Dividend FCF of th the Cash sh a as o of December period March period June 2020 2019 2020 8
Government measures for openings Mall opening and required measures • Taking temperature upon entrance; • Hand sanitizers available; • Social distancing 1.5 SQm; • Health & safety instruction posters throughout the mall; • Capacity control (one person every ten SQm); and • Sanitary mats. 9
02 Financial Strength
Our leverage ratio Gross Leverage 5.72 The strategic decision to close Paris Peru and the 5.48 absorption of Johnson by Paris Chile improves the debt 5.25 5.11 5.06 4.98 4.97 ratio: 4.91 • Lower lease liability for leased premises that will be 4.09 closed; • EBITDA improvement due to savings in logistics, marketing and administration expenses; and • Streamlines inventory, optimizing working capital. 2012 2013 2014 2015 2016 2017 2018 2019 LTM Jun 20 Net Leverage 5.27 • 4.53 4.53 4.52 As of July 22, credit rating agency Fitch Ratings 4.33 affirmed Cencosud's BBB- rating and changed the 4.07 3.93 outlook to stable; • As of August 14, the credit rating agency Moody’s 3.27 3.15 noted Cencosud's alliance with Cornershop as positive 2012 2013 2014 2015 2016 2017 2018 2019 LTM Jun 20 11
Liquidity management Relevant Figures Jun 20 Dic 19 Jun 19 Achieved reduction in financial debt Total Financial Debt (US$ MM) 4,294 5,696 6,549 • 34% from June 2019 Cash and equivalents (US$ MM) 291 1,426 1,413 • Other Financial Assets, Current (US$ MM) 1 414 312 301 25% from December 2019 Other Financial Assets, Non-Current (US$ MM) 2 282 311 374 Net Financial Debt (US$ MM) 3,307 3,648 4,461 Adj. EBITDA LTM (US$ MM) 1,049 1,116 1,247 Net Financial Debt / Adj. EBITDA LTM 3.15 3.27 3.58 • Amortizations (figures in USD MM) Relevant maturities only from the 1,011 year 2025 569 560 385 193 175 105 58 48 45 30 18 17 13 20 21 22 23 24 25 26 27 28 29 30 41 44 45 1 Mutual funds and derivatives 2 Derivatives 12
Low exposure to the exchange rate Currency Exhibition 1 Jun 20 Dic 19 • As of June 2020, 35% of total cash is held in dollars (US $ 102 MM) USD USD • Most derivatives have a positive mark to market 3% 4% CLP + CLP + UF UF 97% 96% Rate Exposure 1 Jun 20 Dic 19 Variable Variable 4% 4% Fixed Fixed 96% 96% 1 Includes cash in US $ and excludes Cross Currency Swaps 13
03 Quarterly Results
Executive Summary Revenues At constant exchange rates, revenues declined 3.4% explained by the temporary closure of the Department Stores and Shopping Centers businesses, in all countries, offset by growth in sales in the e-commerce, Supermarkets and, to a lesser extent, Home Improvement. Adjusted EBITDA Adjusted EBITDA (excluding IAS29) increased 0.5%, with the highest growth in Brazil, which obtained the best performance of the last 7 years by more than doubling its EBITDA YoY, and increases in Peru, Colombia and Argentina. All this as a consequence of the focus on operating efficiencies, renegotiations with suppliers, adjustments in the sales mix and a better management of working capital. Net Profit (Loss) The Company reported a higher net loss for the period of CLP 34,248 million, reflecting the lower revaluation of investment properties (not cash flow). Excluding this effect and the accounting for hyperinflation in Argentina, profit reached CLP 39,090 million, an improvement over the previous year's loss of CLP 17,902 million. This improvement reflects lower financial costs, lower income tax and the improvement in the profitability of Supermarkets and Home Improvement. 15
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