Third Quarter 2018 1 Disclaimer The information contained in this - PowerPoint PPT Presentation

Third Quarter 2018 1

Disclaimer The information contained in this presentation has been Cencosud and their respective affiliates, officers, prepared by Cencosud SA ("Cencosud") for informational directors, partners and employees accept no liability purposes only and should not be construed as a for any loss or damage of any kind arising from the solicitation or an offer to buy or sell securities and use of all or part of this material. should not be treated as giving investment advice or otherwise. No representation or warranty, express or This presentation may contain statements that are implied, is provided in relation to the accuracy, subject to risks and uncertainties and factors, which completeness or reliability of the information contained are based on current expectations and projections herein. The views expressed in this presentation are about future events and trends that may affect the subject to change without notice and Cencosud has no business of Cencosud. You are cautioned that such obligation to update or keep current the information forward-looking statements are not guarantees of contained herein. The information contained in this future performance. There are several factors that presentation is not intended to be complete. can adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. 2

Executive Summary • The macro environment across the region further weakened during this quarter, with softer consumer consumption and currency volatility across most of our markets. In addition, results for this quarter reflect the application of IAS 29, treating Argentina as a hyper-inflationary economy. New CEO since October 1 st and new business regional leaders were appointed. • • The online channel sales increased 24.1% YoY at constant currency, and reached a penetration of 2.5% 1 over total retail sales compared to 1.8% in 3Q17. In 9M18, online revenue growth was 41.8% and penetration reached 2.9%, up 100 bps from 1.9% in 9M17. • At constant exchange rates, revenue increased 8.0%. As previously reported, revenues decreased 8.1% due to the depreciation of most currencies against CLP. As reported, and including the accounting adjustment (Argentina as hyperinflationary economy) revenues decreased 25.5%. • At constant exchange rates, Adjusted EBITDA decreased 5.2%. As previously reported Adjusted EBITDA decreased 22.8%. As reported, Adjusted EBITDA decreased 36.7% mainly due to the hyperinflationary accounting adjustment in Argentina. 3 1 Considers supermarket formats at all countries with the exception of Brazil, Department Stores Chilean Operations and Home Improvement in the 3 countries

3Q18 Highlights Consolidated 3Q18 Results As Previously Reported IAS29 As Reported (A) (B) (C) (D) Inflation Conversion 3Q18 1 3Q17 2 3Q18 6 Chg. YoY Chg. YoY Chg. YoY Effect 4 Effect 5 Constant CLP mn CLP mn Ex-IAS29 3 CLP mn CLP mn CLP mm (%) Currency Revenues 2.295.653 2.497.536 -8,1% 8,0% 175.866 (610.583) 1.860.936 -25,5% Gross Profit 641.818 703.081 -8,7% 12,3% 85.589 (233.078) 494.329 -29,7% Gross Mg. 28,0% 28,2% -19 bps 26,6% -159 bps SG&A (579.889) (631.083) -8,1% 11,0% (61.352) 182.570 (458.671) -27,3% SG&A (% of revenues) -25,3% -25,3% 1 bps -24,6% 62 bps Adjusted EBITDA 113.064 146.521 -22,8% -5,2% 34.224 (54.578) 92.710 -36,7% Adj. EBITDA Mg. 4,9% 5,9% -94 bps 5,0% -88 bps Net Profit (15.339) 28.458 N.A. N.A. 39.365 (29.717) (5.691) N.A. Net Profit Mg. -0,7% 1,1% -0,3% 1 Excludes the adjustment by hyperinflation in Argentina 2 As Reported 3 Considers the quarter results with previous accounting methodology, using an average exchange rate per month in Argentina. 4 ‘Inflation effect’ reflects the nine months period results from Argentina updated by inflation. 5 ‘Conversion effect’ reflects the translation from ARS to CLP figures of the 9 months period using end of period exchange rate as of September 2018. 6 Includes the adjustment by hyperinflation in Argentina. 7 (A) + (B) + (C) = (D) 4

9M18 Consolidated 9M18 Results As Previously Reported IAS29 As Reported (A) (B) (C) (D) Inflation Conversion 9M18 1 9M17 2 Chg. YoY Chg. YoY 9M18 6 Chg. YoY Effect 4 Effect 5 Constant CLP mn CLP mn Ex - IAS29 3 CLP mn CLP mn CLP mn (%) Currency Revenues 7.124.975 7.607.136 -6,3% 7,9% 175.866 (610.583) 6.690.259 -12,1% Gross Profit 2.035.472 2.168.934 -6,2% 11,2% 85.589 (233.078) 1.887.983 -13,0% Gross Mg. 28,6% 28,5% 6 bps 28,2% -29 bps SG&A (1.762.077) (1.917.875) -8,1% 8,3% (61.352) 182.570 (1.640.858) -14,4% SG&A (% of revenues) -24,7% -25,2% 48 bps -24,5% 69 bps Adjusted EBITDA 449.466 461.532 -2,6% 12,6% 34.224 (54.578) 429.112 -7,0% Adj. EBITDA Mg. 6,3% 6,1% 24 bps 6,4% 35 bps Net Profit 40.796 120.581 -66,2% -46,1% 39.365 (29.717) 50.443 -58,2% Net Profit Mg. 0,6% 1,6% -101 bps 0,8% -83 bps 1 Excludes the adjustment by hyperinflation in Argentina 2 As Reported 3 Considers the quarter results with previous accounting methodology, using an average exchange rate per month in Argentina. 4 ‘Inflation effect’ reflects the nine months period results from Argentina updated by inflation. 5 ‘Conversion effect’ reflects the translation from ARS to CLP figures of the 9 months period using end of period exchange rate as of September 2018. 6 Includes the adjustment by hyperinflation in Argentina. 7 (A) + (B) + (C) = (D) 5

Progress in Strategy Execution Omnichannel Roadmap The online channel of retail businesses increased 24.1% YoY, and reached a penetration of 2.5% 1 over total retail sales compared to 1.8% in • 3Q17. Considering the nine months period, revenue growth was 41.8% and penetration reached 2.9% up from 1.9% in 9M17. Q2 ‘17 Q2‘18 Q4 ‘18 • • • Omnichannel Strategy Go live new website for Seller Center Colombia • Jumbo in Chile Chatbot Colombia & Argentina workshop for the 4 countries • • Chatbot Peru Scan & Go Pilot in Jumbo Chile (excl. Brazil) • First Business Case Agile Cells Q3 ‘17 Q1 ‘18 Q3 ‘18 • • • Release of Jumbo App in Unification of food and Go Live new website for Jumbo Colombia and Wong App in Peru non-food websites in in Argentina • Go Live new website for Wong • Jumbo Colombia Chatbot Colombia in Peru 1 Considers supermarket formats at all countries with the exception of Brazil, Department Stores Chilean Operations and Home Improvement in the 3 countries. 6

Progress in Strategy Execution IPO Shopping Centers • Mandate issued to Investment Banks (JP Morgan & Bank of America) • Transaction Perimeter: Shopping Centers and expansion projects in Chile, Peru & Colombia • Capital Structure definition • Reorganization of Legal Entities to regroup assets In progress: • Feedback from Rating Agencies • Prepare the Prospectus • Regulatory Filing (registration of the new company in the CMF) • Roadshow & IPO 7

Supermarkets Results 1 Revenues declined 8.1% in CLP reflecting the depreciation of ARS 3Q18 3Q17 Chg. YoY Chg. YoY and BRL against CLP, partially offset by increased revenues in Chile, As Constant CLP mn CLP mn Reported Currency Argentina & Peru. Adjusted EBITDA decreased 3.3% in CLP YoY explained by: Revenues 1.660.226 1.806.015 -8,1% 6,4% Gross Profit 403.970 444.149 -9,0% 9,0% • In Chile and Argentina Adjusted EBITDA was affected by Gross Mg. 24,3% 24,6% -26 bps lower rebates from suppliers reflecting the focus on SG&A (363.185) (406.937) -10,8% 8,8% working capital. Additionally, in Argentina the increase in SG&A (% of revenues) -21,9% -22,5% 66 bps Adjusted EBITDA margin reflects the positive effect of Adjusted EBITDA 76.843 79.472 -3,3% 1,6% higher inflation on inventory. Adj. EBITDA Mg. 4,6% 4,4% 23 bps • Brazil : Adjusted EBITDA improved due to a more efficient Supermarket SSS by Country & Food Inflation inventory management, lower shrinkage and SG&A. Same Store Sales Food Inflation Revenues Chg. YoY Chg. YoY • Peru : third consecutive quarter of increased traffic. 3Q18 2Q18 3Q17 3Q18 3Q17 3Q18 3Q17 Constant As Reported (%) (%) (%) (%) (%) CLP mn CLP mn Currency Adjusted EBITDA decreased on greater promotional Chile 3,6 1,9 3,8 3,2 0,6 697.004 671.518 3,8% 3,8% activity, higher shrinkage and increased logistic costs. • Argentina 25,6 17,7 17,0 35,0 n.d. 273.238 374.385 -27,0% 28,1% Colombia : improved performance in dairy and beauty categories. Adjusted EBITDA decreased due to lower SG&A Brazil -1,6 1,6 -6,7 1,3 -4,5 307.661 383.283 -19,7% -2,9% leverage and increased personnel expenses. Peru 2,0 2,7 0,5 -0,6 3,8 203.808 196.852 3,5% 1,8% Colombia -2,9 0,3 -3,3 1,5 1,4 178.516 179.976 -0,8% -3,9% Source: INE, IBGE, BCRP, BanRep 8 1 For comparative purposes and business performance analysis, figures exclude the effect of hyperinflation in Argentina.