Presentation 3Q18 1 INVESTMENT HIGHLIGHTS OUR STRATEGY LOOKING - - PowerPoint PPT Presentation

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Corporate Presentation 3Q18

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INVESTMENT HIGHLIGHTS

OUR STRATEGY LOOKING AHEAD

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WHY CENCOSUD?

1 Figures as of September 2018 2 Market Cap calculated as of September 2018 using the stock closing price of CLP 1,564 and constant Exchange rate of CLP 660,42 per US$ 3 David Gallagher presented his resignation on June 29, effective immediately due to his appointment as ambassador of the United Kingdom. 4 BCS stands for Bolsa de Comercio de Santiago. Figures as of September 2018 using close stock price CLP 1,564 and a constant Exchange rate of CLP 660,42 per US$.

LEADING SOUTH AMERICAN MULTI-FORMAT RETAILER1

PREMIER BRAND PORTFOLIO WITH INTEGRATED MULTI-FORMAT STRATEGY

UNPARALLELED GROWTH TRACK RECORD HOLDING VALUABLE LAND BANK SEASONED MANAGEMENT TEAM3 LISTED ON BCS4 RATED IG BY MOODY’S AND FITCH PRIVILEDGED POSITION TO BENEFIT FROM IMPROVED ECONOMIC ENVIRONMENT

 5 Business Divisions & 5 countries  Leadership positions across the region  Market Cap US$ 6.8 bn2  135,182 employees  1,114 retail stores + 54 shopping centers  3.6 mm sqm of retail space + 782,545 sqm of shopping centers GLA to third parties  Sound Corporate Governance with SOX standards:  8 Seasoned Board Members  3 Paulmann Family members  2 Independent members  Board of Directors Committee:  Total of 3 members; 2 independent  Listed on BCS (2004)  46.3% Free Float  Daily Avg. Trading Volume: US$ 8.7 mm  Rated IG by Moody’s and Fitch  Member of the EME DJSI  Market leadership positions across the region  Peru:  133,510 sqm of land bank  La Molina Project  Argentina:  3.2 mm sqm land bank

 Recognized brand portfolio

 6.1 mm sqm of land bank to fuel future growth across the region

TOTAL SELLING SPACE (‘000 sqm)

1 2 3 4 5 6

4.387 4.417 4.418 4.401 4.356 2014 2015 2016 2017 09.2018

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CENCOSUD: A PAN-REGIONAL MARKET LEADER

COLOMBIA

3RD SUPERMARKET 2ND HOME IMPROVEMENT

CHILE

2ND SUPERMARKET 2ND HOME IMPROVEMENT 2ND SHOPPING CENTERS 2ND DEPARTMENT STORES

PERU

2ND SUPERMARKET 4TH DEPARMENT STORES

ARGENTINA

2ND SUPERMARKETS 1ST HOME IMPROVEMENT 1ST SHOPPING CENTERS 4TH SUPERMARKET Leadership position in Northeast, Minas Gerais, and Río de Janeiro

BRAZIL

Note; Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria). In May 8, 2018 an agreement was signed with Scotiabank to jointly develop the business in Peru.

JV JV JV

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REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS UNIT AND GEOGRAPHY

59% 27% 10% 4% 45% 23% 14% 10% 8%

Note: Figures converted to US$ using a constant exchange rate of CLP 660.42 per US$ 1 Graph excludes Adj. EBITDA from Brazilian operations which presented a negative contribution of US$ 30 mm 2 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. These figures include CLP 11,097 mm of extraordinary gains from the sale of non-core real estate assets in the LTM period. 3 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14,446 mn and Adjusted EBITDA was US$ 1,015 mn, using end of period exchange rate of CLP 660.42 per US$. Argentina represented 19% of total revenues and 25% of total Adjusted EBITDA.

REVENUE BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘18) US$ 15,104 mm3

• ADJ. EBITDA BREAKDOWN BY GEOGRAPHY (LTM as of Sept ‘18)

US$ 1,046 mm1,2,3 (6.9% Adjusted EBITDA margin)

• 250 supermarkets
• 35 home improvement stores
• 81 department stores
• 26 shopping centers
• F.S.: JV with Scotiabank
• 284 supermarkets
• 51 home improvement stores
• 22 shopping centers
• Financial Services
• 200 supermarkets
• 3 different regions
• F.S.: JV with Bradesco
• 93 supermarkets
• 11 department stores
• 4 shopping centers
• Financial Services
• 99 supermarkets
• 10 home improvement stores
• 2 shopping centers
• F.S.: JV with Colpatria

CHILE ARGENTINA BRAZIL PERU COLOMBIA

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STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS

Note: Figures converted to US$ using a constant exchange rate of CLP 660.42 per US$ 1 Graph excludes the “Others” segment, which contributes US$ 9 mm in revenues and –US$ 267 mm in Adj. EBITDA. Adj. EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. 2 Revenues and Adjusted EBITDA from Shopping Centers don’t include related party transactions 3 Mg = Adjusted EBITDA margin 4 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 14,446 mn and Adjusted EBITDA was US$ 1,015 mn, using end of period exchange rate of CLP 660.42 per US$.

REVENUE BREAKDOWN BY BUSINESS (LTM as of Sept 2018)1,4 US$ 15,104 mm ADJUSTED EBITDA BY BUSINESS (LTM as of Sept 2018)1 US$ 1,046 mm (6.9% Adjusted EBITDA margin)2,3,4 Retail accounted for 95% of Revenues US$10,650mm US$1,916mm US$1,771mm Complementary Business US$206mm

10.7% mg

Retail accounted for 63%

• f Adjusted EBITDA

US$69mm

3.9% mg

US$ 549mm

5.2% mg

US$292mm

78.0% mg

US$198mm

51.6% mg

Complementary Business

Supermarkets Home Improvement Department Stores Shopping Centers Financial Services 6

US$383mm US$375mm

71% 2% 13% 12% 2% 42% 22% 16% 5% 15%

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PROVEN GROWTH TRACK RECORD

1,0 1,4 2,1 3,8 4,7 5,7 9,3 8,3 9,4 11,5 13,9 15,7 16,5 16,6 15,7 15,8 15,1

1 Revenues denominated in US$, calculated with an exchange rate of CLP 660.42 per US$ 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)

• Total selling space grew from 2.8 mm sqm

in 2010 to 4.4 mm sqm in 2017.

• Revenues increased from US$9.3 bn in

2010 to US$17 bn in 2017

(CAGR: 6.4%) (CAGR: 7.8%)

1976 1982 1988 1993 2002 Opening of first supermarkets

IPO BCS1 IPO NYSE

Consolidation in the Chilean market Internationalization process

Peru

Consolidation and synergies

Delisting NYSE

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM 09.2018

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STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE

1 Debt denominated in US$ using end of period exchange rate of 30 September 2018 2 Amortization schedule is presented net off gains/losses from mark to market of derivatives, overdrafts and Comex debt (excluding forwards). 3 Debt by currency after cross-currency swaps.

• Pre-payment of the 2021 and 2023 bonds in 3Q17 & Pre-payment of

local bonds BCencE (UF 2 million), BCencO (CLP 54,000 million) and Incabond (PEN 280 million) in 2Q18.

• Investment Grade rating since 2011
• Fitch Ratings:

BBB- (stable)

• Moody’s:

Baa3 (negative)

DEBT BY CURRENCY (AFTER CCS) 3 DEBT AMORTIZATION SCHEDULE (US$ MM)1,2 NET FINANCIAL DEBT EVOLUTION

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3Q18 3Q17

CLP + UF; 73% USD; 20% Others Latam; 7% CLP + UF; 70% USD; 21% Others Latam; 9%

4,6 3,7 3,9 3,5 3,8 4,0 4,5 4,6 3,4 3,7 3,3 3,2 3,7 4,5 2012 2013 2014 2015 2016 2017 09.2018

Net Financial Debt (USD bn) NFD/Adj. EBITDA (times) 25 343 600 185 59 805 36 727 54 1.085 230 43 16 208 350

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EXPERIENCED MANAGEMENT TEAM

CORPORATE GOVERNANCE AND BOARD OF DIRECTORS

• Sound corporate governance SOX Standards:
• 8 seasoned Board members:
• 3 Paulmann Family members
• 2 Independent members
• Board of Directors’ Committee (CMF1):
• Roberto Philipps
• Richard Büchi (Independent)
• Mario Valcarce (Independent)

Heike Paulmann K. Horst Paulmann K. Peter Paulmann K. Richard Büchi Cristián Eyzaguirre Julio Moura Roberto Philipps Mario Valcarce

Independent members

# MD of Audit Bronislao Jandzio

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FSM DSM HIM HHRR

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CFO CLM SM

10 years in the industry

Andreas Gebhardt Rodrigo Hetz Rodrigo Larraín

Ricardo Bennett

Dag Loebenstein Antonio Ureta Patricio Rivas Eric Basset

CEO

Years in Cencosud

6 13 17 12 16 22 22 24

CSCM Matias Videla GC Carlos Mechetti

CEO: Chief Executive Officer. HHRR: Human Resources. CFO: Chief Financial Officer. CLM: Corporate Logistics Manager. SM: Supermarkets Manager; DSM: Department Stores Manager. HIM: Home Improvement Manager. FSM: Financial Services Manager. CSCM: Corporate Shopping Centers

• Manager. GC: General Counsel.

2 Jaime Soler presented his resignation effective as of September 30, 2018. In his replacement the Board has appointed Andreas Gebhardt, who assumed this function in October 1, 2018.

MANAGEMENT TEAM2

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INVESTMENT HIGHLIGHTS

OUR STRATEGY

LOOKING AHEAD

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THE THREE PILLARS OF OUR STRATEGY

 Financial Strengthening

• Commitment with IG
• Liability Management
• Non-core assets sale

 Strategic Alliances

• JVs with Scotiabank, Colpatria and

Bradesco

• Sustainable relationship with

suppliers  Big Data & Analytics  Private Labels and Regional Synergies  Sustainability  Talent  Health & Wellness

• Organic
• “Free of”
• Health

STRONG VALUES  Digital Transformation and Omni- channel

• “Whatever you want, whenever you

want, however you want, wherever you want”

• IT & Logistics Investments

 Strategic Planning

• Area in charge of

coordinating and materializing planning for each business division  Procurement

• Close to the business
• Regional team
• Efficiency, process and

people  Process Standardization and Centralization

• SAP Unification
• Robotic Process Automation
• CSC: Continue Growing

 Organic Growth

• Remodeling
• Omni-channel
• New projects

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GROWTH TRENDS EFFICIENCY AND PRODUCTIVITY

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INVESTMENT HIGHLIGHTS OUR STRATEGY

LOOKING AHEAD

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GUIDANCE AND INVESTMENT PLAN FOR 2018

• For 2018, the company expects revenues of US$16,200 million, based
• n an acceleration in sales in Supermarkets, Home Improvement and

Department Stores, in addition to significant growth of the online business, a continuation of strong performance in Shopping Center revenues, store openings and a better regional economic environment.

• Adjusted EBITDA margin of 7.2%.
• Our Capex base plan includes investments of US$ 400 million, which

could be revised upwards as our plan to divest non-core assets of up to US$ 1 billion announced at the end of August last year is executed.

Working Spotlights

• During 2017, 7 stores were opened and the

remodeling of another 18 was completed, according to the Reinforcement of Value Proposition and Store Competitiveness Plan.

• Omnichannel development, innovation and

leadership in new trends.

• The Company made significant progress

increasing efficiencies and lifting service standards, and continued to execute its Financial Strengthening and Business Profitability Plan.

54% 26% 20%

Remodeling and Organic Growth Technology, Logistics and Omnichannel Maintenance and recurring Capex

CAPEX DISTRIBUTION BY INVESTMENT TYPE US$ 400 mm

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