Results 2014 Third Quarter www.cencosud.com 2 The information - - PowerPoint PPT Presentation

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Results 2014 Third Quarter www.cencosud.com 2 The information - - PowerPoint PPT Presentation

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Corporate Presentation Third Quarter Results 2014 Third Quarter www.cencosud.com 2 The information contained herein has been prepared by Cencosud S.A. (Cencosud) solely for informational purposes and is not to be construed as a

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Third Quarter

Results 2014

Corporate Presentation

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2 Third Quarter www.cencosud.com

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 opinions expressed in this presentation are subject to change without notice and Cencosud is under no obligation 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 of 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.

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3 www.cencosud.com

3Q14 Highlights

  • Revenues Pushed Higher by Supermarkets, Home Improvement, Financial Services &

Shopping Centers

  • Supermarket Sales continue to Gain Traction in Chile, Peru, Argentina & Colombia
  • Operating Income Remained Flat while including D.O.
  • Adjusted EBITDA Grew 0.6% YoY.
  • Net Income Fell on 35% on a Higher Non-Operating Loss Partially Offset by Lower Tax

Expenses.

  • Jaime Soler, Corporate Retail Manager Takes Over as CEO after Daniel Rodriguez Exits

Third Quarter

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4 www.cencosud.com Third Quarter

Revenue by Country (CLP mm) Revenue Evolution (CLP mm)

  • Revenue gains in Supermarkets, Financial Services, HI and

Shopping Centers Pushed Revenue up by 6.8%

  • Department Store Business Affected by Lower Discretionary

Spending

  • Devaluation of 18.4% of the ARS Curbed Further Revenue Gains
  • Colombia SSS Reached Breakeven, According to Budgeted. Brazil

SSS posted sequential narrowing

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5 www.cencosud.com Third Quarter

EBITDA by Country (CLP mm) Adjusted EBITDA Evolution (CLP mm)

  • Double digit growth in Home Improvement EBITDA
  • Lower

Contribution From D-Stores, Shopping Centers and Supermarkets. Argentina´s EBITDA Contribution Fell (CLP 10,018 MM) due to the Second Installment of Collective Bargaining Agreements and ARS Depreciation

  • Department Stores Posted a Weaker Performance in Chile consequence of Weaker

Consumer Spending & Our Peru Greenfield

  • Supermarkets EBITDA Fell in Argentina & Brazil; EBITDA Rose in Chile, Colombia

and Peru

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www.cencosud.com 6 Third Quarter

Strong Performance in Chile

  • Strong SSS Performance from Chile Supermarket on Santa Isabel
  • Refocus. Adjusted EBITDA Mg expansion of 200 Bps
  • SG&A Control Helps Drive 32% Growth in Adjusted EBITDA Chile
  • Well Positioned to Compete in Slowing Retail Environment
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7 Third Quarter 7 Third Quarter

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Supermarkets

Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) SSS evolution by country in local currency

8 www.cencosud.com

  • Revenue was boosted by SSS Improvements in all Markets v 3Q13
  • 9 Net Store Openings YoY or 1.5% Selling Space Growth
  • Colombia Reached Positive SSS in the Period According to Guidance
  • Argentine operations posted a 64% EBITDA Contraction YoY

mainly as a result of the second instalment of Collective bargaining agreements.

  • Brazil posted a weak EBITDA generation due to Lower Gross

Margin; partially explained by Greater Shrinkage. The above was partially offset by SG&A Dilution

  • Chile, Colombia & Peru Posted EBITDA 28% on increased

promotional Activity and SG&A Dilution

Third Quarter

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www.cencosud.com 9 Third Quarter

Eye On Colombia

Cencosud has Successfully Positioned its Brands in Colombia as Market Leaders in Perishables SG&A Dilution as a Result of an Improved Sales Performance Jumbo Brand in Particular Gaining Strong Momentum Among Consumers

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www.cencosud.com 10 Third Quarter

Brazil Remains a Challenge

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Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) SSS evolution by country in local currency

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Home Improvement

www.cencosud.com

  • Stronger sales across all markets; Following 6 new openings and positive

SSS in Argentina and Chile

  • ARS depreciation curbed revenue expansion for Argentine operations
  • Colombia SSS reflect the effect of competing stores opening over a small

base for SSS

  • Gross Margin Expanded in All Operations; 34.2% in 3Q14 v. 32.7% in 3Q13. In

Chile this is partially explained by a greater Retail component to our Sales mix

  • Chile EBITDA Jumped Due to Lower SG&A Over Sales Resulting from Greater

Productivity

  • Profitability in Argentina was Affected by the Second Instalment of Collective

Bargaining Agreements

  • EBITDA loss in Colombia Narrowed despite negative SSS trends

Third Quarter

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Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) 2014 SSS evolution in local currency

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Department Store

www.cencosud.com

  • Focus on Promotions to Spark Recovery of Durables as a

Negative Knock on Effect of Demand Shifting to 1H14 on the World Cup

  • New Fast Fashion Proposal to Revive Sluggish Apparel

Sales on Slower Discretionary Spending

  • Greater

Degree

  • f

Promotions in Face

  • f

Chilean Consumer Spending Affected by Weaker Confidence

  • Peruvian Increase in Sales Mainly Explained by Selling

Space Growth

Third Quarter

  • Chile EBITDA Dropped 49% and EBITDA Margin Narrowed

110 bps. This follows a move to protect the profitability of the operation in a seasonally weaker quarter, improving the trend seen in 2Q14 (-520 bps).

  • Softer Apparel Sales Weighed on Margins at Paris Chile
  • Clearance Sales at Our Paris Stores Vying to Keep

Inventories in Check Eroded Profitability

  • Negative Effects of FX a Thing of the Past as of Sept.

Chile EBITDA Peru EBITDA

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Shopping Centers

www.cencosud.com Third Quarter

Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm)

  • Revenue Growth Fueled by High Occupancy rates in Chile & Peru
  • Costanera Center Posts Great Traffic Figures and Resiliency to Slowdown
  • EBITDA in Chile Affected by Refunding of Building Expenses to Tenants
  • Margins in Argentina Affected by Weaker Consumption
  • Peru Gross Margin Gains partially Offset Drops in Chile and

Argentina on Greater Occupancy

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Costanera Center

www.cencosud.com Third Quarter

  • Cencosud is Currently On Track to Deliver on Traffic and Environmental Mitigation

Works in Late 1Q15

  • Jones Lang & LaSalle Has Been Hired to Consult on the Leasing Process for Costanera

Center Tower

  • Demand for Office Space Continues to be Strong in the “Sanhattan” Area,
  • Currently Leasing Out Low Rise Section of Costanera Center. Process to Go on For

1Q14.

  • Focus Right Now on Closing Anchor Tenants
  • 15,000 m2 of Office Space
  • Commercial strategy in Line with That of Comparable Developments in the Area
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Financial Services

www.cencosud.com

  • Revenue Growth was Mainly Led by Argentina, Peru & Colombia due to increased portfolios
  • Results Improved in Argentina, Peru & Colombia on the back of lower risk and a larger portfolio
  • Regulatory Changes at our banking operations and a CLP 3,902 million charge in anticyclical provisions in Chile Pushing Operating Income Downward

Third Quarter

All portfolio values are MM in local currency

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Financial Ratios

www.cencosud.com

Breakdown by Issuer

Third Quarter

Net debt evolution (US$ bn) Net leverage (net debt / EBITDA) Breakdown by Rate

(after CCS)

Breakdown by Currency

(after CCS)

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Amortization Schedule

www.cencosud.com

  • This chart does not incorporate any pay down of debt with funds to be received from the announced JV in financial

services in Chile

  • Amortization data as of September 30, 2014

FINANCIAL DEBT

USD MM

Third Quarter

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Financial Services

Update

www.cencosud.com 18 Third Quarter

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www.cencosud.com 19

Timeline for Closing

  • *: SBIF stands for “Superintendencia de Bancos e Instituiciones Financieras”. This is a Chilean government agency

charged with the supervising of commercial banks and other financial institutions, safeguard depositors and or creditors and the public interest.

Third Quarter

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Early Redemption of Domestic Bond Issuance

www.cencosud.com Third Quarter

  • Proposed covenant change on bondholder meeting held on September 4th. The amendment to the issuance was only passed for

line 530.

  • Bondholders of issuance 530 were paid a fee for the covenant amendment of 0.25% of the issuance´s outstanding amount.
  • On October 17th the company announced the early redemption of bonds issued under domestic line 443.
  • Issuance 443 has an outstanding amount of UF 10,000,000 or USD 410 MM and is callable at par.
  • The early redemption of said bonds is to be carried out on November 19, earliest coupon date, in CLP according to the value of the

UF on the redemption date.

  • On October 20th, the Company received regulatory approval from the Canadian regulator for this transaction
  • The Company expects that the redemption of such bonds would pave the way, pending regulatory approval in Chile, for the full

implementation of the Joint Venture Framework Agreement entered into with Scotiabank.

  • The company entered into a bridge-loan facility to finance the early redemption of the aforementioned bonds
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Tax Reform

www.cencosud.com Third Quarter

Cencosud book on the adoption of the partially integrated taxation system an increase of c. CLP 24,900 million in net deferred tax liabilities.

  • CLP 1,200 million booked on 2014 results related to the increase in the corporate income tax rate, from 20% to 21%
  • Additional tax provisions could be made if Cencosud´s shareholders were to choose an attributed income regime
  • SEC fillings incorporate the effect of the tax reform on net differed liabilities on the Company's P&L following IFRS rules
  • The effect on revaluation of assets of the Tax Reform was already included in 2Q14 results.
  • The aforementioned effects are non-cash

A reconciliation of SVS and SEC financial statements is available on Cencosud´s 3Q14 Earnings Release.

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Chilean positioning remains strong, even in weakening environment Manage impact of Argentina, drawing

  • n decades of

experience Brazil Remains a Challenge Scotiabank transaction to provide additional financial flexibility Build on improved performance in Colombia

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Positioning for 2015

www.cencosud.com Third Quarter

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Marisol Fernández León IR Manager Phone +562 2959 0545 mariasoledad.fernandez@cencosud.cl

Natalia Nacif Senior IR Analyst Phone +562 2959 0368 natalia.nacif@cencosud.cl Ignacio Reyes Senior IR Analyst Phone +562 2959 0804 Ignacio.reyesmiranda@cencosud.cl

Upcoming Events Jan 2015 CNCO Full Year 2015 Guidance Release March, 27th – 2015 4Q14 Earnings Report