Supermarkets BrazilCorporate Presentation

Brazil

2

Agenda

1. Highlights per banner

2. Clients

3. Trends

4. Profitability

5. Mid-term vision

Brazil

3

Highlights per banner

GBarbosa: Gained share in food & electro Strong double digit growth in electro CD Format double digit growth

Bretas: 7 store closings (June and July) Changed commercial business strategy (July) Gradual increase in transactions (tickets) Gradual recovery in share 3 Cash&Carry stores positive operational ebitda

Prezunic: Market still tough Very gradual recovery in sales

Transversal Increase in price competitiveness with no

margin impact Nominal SG&A reduction Important deflation in food (commodities).

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Jornal - O GLOBO - 22/09/2017 (fuente IGBE)

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Status principales proyectos 01

PRICING

CATEGORY MGMT

SUPPLY CHAIN

FIDELITY CRM

Tool development

Macro Layout Exposition Guides

Regular replenishment

Tooldeveloment

PROMO PROCESS

2016 2017 2018

Implementation

Assortment Management

Planogram

PromoPurchase Analytics

Targeted sales initatives

PromotionalFlow

Regularreplenishment

5

Agenda

1. Highlights per banner

2. Clients

3. Trends

4. Profitability

5. Mid-term vision

Brazil

6

Clients 02

A. Final Client

B. Employees

C. Community

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Clients 02

A. Final Client: Changes in purchase patterns

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02Growth of Cash & Carry segment

29,6%

9,1%

Super27,0%

32,6%37,2%

2012

Hyper

C&C

2016

Convenience

Discount1,6%

29,7%

1,2%

23,1%

8,8%

Distribution of sales x format modern market

13 vs 12 14 vs 13 15 vs 14 16 vs 15 CAGR16 vs 12

Convenience 29,2% 27,1% 6,2% 12,4% 14,9%

Discount 16,1% 10,3% 0,9% 12,3% 7,7%

Supermarket 10,5% 4,6% 4,0% 5,2% 4,6%

Cash & Carry 20,5% 13,4% 14,4% 14,2% 14,0%

Hypermarket 6,4% 6,8% 6,1% 1,3% 4,7%

Market 12,0% 8,4% 7,2% 7,1% 7,6%

Sales growth per format from 2012 to 2016 Brazil

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02Growth in Cash & Carry

• NIELSEN HOMESCAN| ANO MÓVEL ATÉ PER06

AUTOSERV + C&C HYPERMARKETS SUPERMARKETS CONVENIENCE CASH&CARRY

MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17

PENETRATION 100 100 43 40 54 55 25 26 51 54

FREQUENCY 103 107 10 10 19 19 8 11 9 10

AVERAGE TICKET 50 51 76 74 67 70 46 58 142 139

Stock up201433%

42 41 40 37 42 39 32 39

67 65

52 52 53 55 51 53 61 54

32 33

6 7 7 9 6 8 6 7 2 3

MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17 MOV'16 MOV'17

T. AS+C&C T.HIPERMERCADOS T.SUPERMERCADOS T. VIZINHANCA T.CASH&CARRY

EMERGENCIA

REPOSICAO

ABASTECIMENTO

Shopping trip

EMERGENCY

STOCK-UP

REPOSITION

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02Growth of Cash & Carry segment

Strategy1. Recover/defend stock-up shopping trip

Improve price perception Gain sales in the 1st fortnight Competitiveness and price perception Assortment / availability Adjustments in promotional dynamics Layout adjustments

2. Strengthen our differentiation : Perishables Shopping experience Private Label Niche/trendy categories (ex. Healthy)

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Clientes 02

A. Final Client: Changes in purchase patterns

B. Employees Continuous improvement on the GPTW index Turnover reduction

C. Community: Sustainable Brand Launch of “hiring experienced talent” campaign.

Target : reach 15% of our employees older than 50 years in the next 12 months

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Agenda

1. Highlights per banner

2. Clients

3. Trends

4. Profitability

5. Mid-term vision

Brasil

03Trends

A. Advances of the digital world

B. Consumption changes: healthy, pets, ready-to-eat and organics

C. CRM and data mining/ analytics

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Advances of the Digital world 03

EVOLUÇÃO DE FATURAMENTO DO DIGITAL COMMERCE 2012/2016

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Advances of the Digital world 02

PARTICIPAÇÃO DAS VENDAS POR REGIÃO

1er sem 2017

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Advances of the Digital World 02

28,1%

50,7%ELECTRO

ELECTRO

CATEGORY SHAREREQUESTS SALES (R$)

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Avances of the Digital World 02

Omni-channel Strategy of Cencosud Brasil

ElectroGbarbosa, start with electro in Q4-2018 or S1-2019 Participate in Marketplaces (B2W, “Mercado Livre”, etc.) Develop e-commerce website Focus on Northeast of Brazil Leverage the 79 hyper-supermarkets + 77 electro shows (click and collect)

Food Monitor the market evolution (penetration and models) Possible 1st entrance in Rio with Prezunic in 2019

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Tendencias 02

Healthy food

Organic Products

Ready-to-eat

Pets

Mundo saludable

Keep accelerating these market segments with high performance

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CRM and data mining/analytics 02

CRM: Started with Dotz in Prezunic in November 2015 65% tickets penetration with associated sales to the client Many incentive programs implemented Riding the learning curve

Data mining / Analytics 2017 data base preparation for ticket and sales analysis 2018 tools implementation and build analytics team Focus on main analysis

Promotional effectiveness and cross sale Clients flow and cashier productivity Assortment effectiveness, macro and micro layout

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Agenda

1. Highlights per banner

2. Clients

3. Trends

4. Profitability

5. Mid-term vision

Brazil

21

Main priorities

A. Sales : Growth SSS Stock-up Mission Keep improving the clusters in AB and CD stores Accelerate stores remodeling

B. Margin : increase cash margin more than sales Maintain the cost negotiation Continue increase logistics changes Continue reducing shrinkage

C. Cost: increase less than inflation

D. Cash Flow

04

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Agenda

1. Highlights per banner

2. Clients

3. Trends

4. Profitability

5. Mid-term vision

Brazil

23

Visión a Medio Plazo 05

Gradual recovery of consumption as of Q4 2017. Rio remains a risk. Good year for electro due to the world cup 2018 Gradual return for stock up shopping trip in Supermarkets

CONSUMPTION

Capture 100% benefits of new Pricing / Supply 2.0 platforms Prepare analytics tools for S2 2018 Start up preparing e-commerce Electro GB in S2 2018

CAPABILITIES DEVELOPMENT

Maintain priority in remodeling and maintenance of stores Keep focusing on A-AB and CD stores STORE MIX