Retail Finance Divisin October 2017 I Retail Finance Strategy 01 - - PowerPoint PPT Presentation

Retail Finance División

October 2017

Retail Finance

Strategy

I

3

Vision

01

Be recognized as the best customer experience Retail Finance company in Latin America. Become a strategic partner for Retail goals while reaching high profitability Keeping a global view of Cencosud

4

02

Retail Finance Business Evolution

Retail Finance

Business Information

II

6

01

Desafíos 2017 5.9 million cards in force June 2017

jun-17

VISA/Mas Private

Tot

VISA/Mas Private

Tot

VISA/Mas Private

TOTAL CHILE 945 479 1.423

• 576

576 945 1.055 1.999 ARG 1.143 453 1.596 1.143 453 1.596 PERU 501 9 511 24 48 72 525 57 582 COL 383 159 542 383 159 542

Cobranding 383 383 383 383 Privada 159 159 159 159

BRASIL 354 29 383 842 842 354 871 1.225

gbarbosa 272 20 292 842 842 272 863 1.134 bretas 83 9 91 83 9 91

TOTAL 3.326 1.129 4.456 24 1.467 1.490 3.350 2.596 5.946 Cencosud Others cards Total Cards

7

02

Total Sales with credit cards

MMUSD

26% 32% 47% 727% 193% Exchange rate real 2017 for all countries .

Last 12 month Last 12 month Last 12 month Last 12 month Last 12 month

Total Sales w/CC Total Sales w/CC Total Sales w/CC Total Sales w/CC Total Sales w/CC

8

03

2.970

5.548

87%

LTM June 2017 2012

Total Sales with credit cards

MMUSD

Exchange rate real 2017 for all countries .

9

04

VENTAS con TARJETA

MM USD

Portfolio

MMUSD

2012 June 2017

Carteras 2.012 junio-17 Var

RF Chile 902 1.268 41% RF Argentina 76 587 675% RF Peru 55 156 182% RF Colombia 183 257 40% RF Brasil 162 179 11%

DRF 1.379 2.447 78%

Exchange rate real 2017 for all countries .

Portfolios

10

05

VENTAS con TARJETA

MM USD

Avg Portfolios

MMUSD

Dólar 2017 para todos los países

11

06

Retail Finance Division - Regional Risk

MM USD

REAL PLAN M

Credit card sales 2.858 2.687 Stock outstanding 2.447 2.286 Stock outstanding average 2.377 2.275 Stock Provisions 194 183

Var Provisions

• 12,6
• 22,5

Woff

• 118,5
• 103,6

Recovery 24,4 25,8

Risk charge

• 106,7
• 100,3

DRF

Acum

Woff / stock outs average (%) 10,0% 9,1% Risk charge / stock outs average (%) 9,0% 8,8% Stock provisions / Stock outs (%) 7,9% 8,0%

Dólar 2017 para todos los países

Retail Finance

Main challenges 2017

III

13

01

Challenges

2017

Maintain the profitability of the business with the new market conditions (New Regulations of the BCRA / Macroeconomics Environment Argentina)

1

Consolidate the attractive value proposition for the client with new financial products whose financing is tied to market tools (Financial Trust).

3

Strategic support to Retail in a complex scenario of government change

4

Maintain the positioning of TC as leader within its category.

2

14

02

Challenges 2017

Maximize EBITDA in a regulatory change scenario (Rotational Fine, interest rate reduction and Invoices with automatic interest rates and consequent loss of interest recipe)

1

Develop Commercial activity with sustainable sales growth and customer base to strengthen synergies with retail

2

Optimize the operation looking for efficiency and greater productivity (migration of the GB Legacy portfolio)

3

15

03

Desafíos 2017

Deepen financial product growth, continue customer migration to open card and maintain a good level of new accounts

1

New card for Upside segment

3

Have a single customer base, and start CRM operation (Front End) supported by Teradata.

4

Achieve high growth rates and card usage out of Cencosud

2

16

04

Challenges 2017 Create occasions of use

1

Extend portfolio duration

2

Operating efficiency

3

Improve portfolio quality

4

17

05

Challenges 2017 Growth in active cards, deepening the loyalty base

1

Migration of the Colpatria points plan to Cencosud Point Plan

2

Cencosud Sales Force Management

3

¡Thanks!