Corporate Presentation Cencosuds2.q4cdn.com/740885614/files/...09.2015-(ENG).pdf1 Figures for the LTM period as of September 2015, translated into USD at end of period exchange rate

Fourth Quarter

Corporate Presentation

Cencosud January 2016

Corporate Presentation | Contents | 2

• Investment Highlights

• Cencosud Snapshot

• Key Figures

• Strategy

• Corporate Governance

Contents



• Key Figures

• Strategy


Contents


Investment Highlights

Core in food retailing business, more resilient to economic downturns

Leading retailer in Latin America with the highest geographic diversification in the region

Premier brand portfolio with high consumer recognition

Committed Board of Directors and Seasoned Management Team

Opportunity to continue expanding in markets with high growth and low penetration

Corporate Presentation | Investment Highlights | 4




• Key Figures

• Strategy


Contents

77,7%

5,7%

22,4%

Retailing Areas Financial Services Real Estate

96,5%

1,4% 2,2%

Retailing Areas Financial Services Real Estate

Source: ILACAD and US Census Bureau, figures as of December 2013

Retail Areas Supermarkets , D-Stores & DYS

USD 11,633 MM

USD 2,007 MM

USD 1,472 MM

Support Businesses Shopping Centers &

Financial Services

1 Translated into USD at CLP/USD 698.72 2 Financial Services figures exclude Financial Services Chile. 3 Revenue and Adjusted EBITDA breakdown graphs exclude segment “Others” 4 Adjusted EBITDA excluding all one-off charges: CLP 105,038 million. 5 Shopping Centers figures only reflect revenues and adjusted EBITDA contributed by third party transactions.

Revenue LTM 09.2015

USD 15,682 MM1

Retail Areas Supermarkets, D-Stores & DYS

Support Businesses Shopping Centers &

Financial Services

Adjusted EBITDA LTM 09.2015

USD 1,083 MM4

USD 342 MM

USD 212 MM2

Others:

USD 15 MM3

Corporate Presentation | Cencosud Snapshot | 6

Overview by Business

USD 261 MM

76.3% mg

USD 67 MM2

31.6% mg

Others:

USD -150 MM3

USD 672 MM

5.8% mg

USD 172 MM

8.6% mg

USD 61 MM

4.1% mg


Atlantic Coast

USD 2,620 MM

USD 4,448 MM

Andean Region

1 Figures for the LTM period as of September 2015, translated into USD at end of period exchange rate (CLP/USD 698.72). 2 Figures from Chile exclude results from the Financial Service division after the completion of the Scotiabank transaction to jointly develop the business in May 1st, 2015. 3 Adjusted EBITDA excluding all one-off charges: CLP 116,771 million for the write-off in Brazil (goodwill) registered in 2Q15, CLP 61,373 million profit for the closing of Scotiabank transaction (2Q15), CLP 41,661 million

related to severance payments (2Q15 & 3Q15) and the provision of obsolete inventories by CLP 7,978 million (3Q15).

Revenue LTM 09.2015 USD 15,682 MM1 Adjusted EBITDA LTM 09.2015 USD 1,083 MM3

USD 1,375 MM

USD 1,395 MM

USD 5,843 MM2


Atlantic Coast Andean Region

• 244 Supermarkets

• 34 Home Improvement

• 79 Department Stores

• 25 Shopping Centers

• JV Scotiabank

• Loan Portfolio: US 847 MM




• US 287 MM loan portfolio

• 89 Supermarkets

• 9 Department Stores



USD 39 MM

2.8% mg

USD 93 MM

6.7% mg

USD 572 MM2

9.8% mg


• Atacarejo format

• 3 different regions

• JV Bradesco




• JV with Colpatria


USD 39 MM

1.5% mg

USD 348 MM

7.8% mg

Overview by Country


3rd SUPERMARKET 2nd HOME IMPROVEMENT

1st SUPERMARKETS 4th DEPARTMENT STORES

2nd SUPERMARKETS 2nd HOME IMPROVEMENT 2nd SHOPPING CENTERS 2nd DEPARTMENT STORES

4th SUPERMARKETS NORTHEAST (#2)

MINAS GERAIS (#1) RIO DE JANEIRO (#3)

2nd SUPERMARKETS 1st HOME IMPROVEMENT 2nd SHOPPING CENTERS

Strong Brand Portfolio

with High Consumer Recognition


High and low end brands

Supermarkets

Home Improvement

Department Stores

Regional Presence / Market Position

HIGH INCOME CONSUMER

MID-TO-LOW INCOME CONSUMER

HIGH INCOME CONSUMER

MID-TO-LOW INCOME CONSUMER

94 stores

941

stores

Shopping Centers

53

Shopping Centers

Financial Services

USD 1.4 bn Loan

Portfolio

• JV’s: Chile, Brazil &

Colombia

• Cencosud: Peru &

Argentina

88 stores

Fourth Quarter

2,0

3,6

4,5

5,4

8,8

7,9

8,9

10,9

13,1

14,8

15,6 15,7

A Development Story

thru Organic Growth & Acquisitions


Acquisitions & Revenues (USD bn)1

1982 1976 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2014

OPENED THE FIRST SUPERMARKET

IPO SANTIAGO

STOCK EXCHANGE

IPO NYSE

1 Figures translated into USD at end of period exchange rate as of September 2015 (CLP/USD 698.72).

Fourth Quarter

355

64 127

229 206

50

779

17

1.217

32

696

47 37

201

37 14 78

350

51%

15%

31%

15% 2%

CLP

UF

USD

PEN

BRL

67%

33%

Fixed

Variable

A Development Story

thru Organic Growth & Acquisitions


2,0

3,1

3,7

6,3

4,7 4,3

3,6

2009 2010 2011 2012 2013 2015 2014

Net Financial Debt Evolution (USD BN)1

1 Figures translated into USD at end of period exchange rate as of September 2015 (CLP/USD 698.72). 2 Considers only principal amortizations and excludes banking operations.

3 Net Financial Debt / LTM Adjusted EBITDA. 2015 ratio calculated with figures as of September. In 3Q15 Fair Value of Derivatives was reclassified from “Other gains/losses” to “Net Financial Cost” and “Income/Loss

from foreign exchange variations”. 2014’ & 2015 ratios are comparable, 4 After CCS

Breakdown by Interest Rate4 Breakdown by Currency4 Leverage Ratio3

2009 2010 2011 2012 2013 2015 2014

Amortization Schedule (USD MN)2

2,6 2,7 3,1

4,6

3,4 3,7

3,3

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045



• Key Figures

• Strategy


Contents


Income Statement

Third Quarter Nine-Month, ended September 30th

2015 2014 ∆ % 2015 2014 ∆ %

Net revenues 2.672.728 2.621.001 2,0% 7.942.483 7.696.197 3,2%

Cost of sales -1.904.512 -1.922.093 -0,9% -5.669.628 -5.650.385 0,3%

Gross profit 768.215 698.908 9,9% 2.272.855 2.045.812 11,1%

Gross margin 28,7% 26,7% 208 bps 28,6% 26,6% 203 bps

Selling and administrative expenses -690.308 -629.697 9,6% -1.992.778 -1.796.165 10,9%

Other income by function 25.307 27.595 -8,3% 65.367 36.399 79,6%

Other gain (Losses) -5.606 -5.094 10,1% -61.713 -4.867 1168,0%

Operating income 97.609 91.713 6,4% 283.732 281.180 0,9%

Participation in profit of equity method associates 4.231 1.280 230,6% 8.771 3.163 177,3%

Net Financial Income -57.694 -32.215 79,1% -168.119 -124.524 35,0%

Income (loss) from foreign exchange variations -77.627 -12.409 525,6% -107.143 -20.754 416,3%

Result of indexation units -7.405 -4.229 75,1% -15.896 -26.369 -39,7%

Non-operating income (loss) -138.495 -47.573 191,1% -282.386 -168.484 67,6%

Income before income taxes -40.887 44.139 -192,6% 1.346 112.696 -98,8%

Income taxes 10.985 -15.455 -171,1% 33.860 -33.578 -200,8%

Profit (Loss) from continued operations -29.902 28.684 -204,2% 35.205 79.118 -55,5%

Profit (Loss) from discontinued operations 0 -465 -100,0% 9.244 10.630 -13,0%

Profit (Loss) -29.902 28.220 -206,0% 44.450 89.749 -50,5%

Corporate Presentation | Key Figures | 12



• Key Figures

• Strategy


Contents


Fourth Quarter

Regional Efficiency

Measures

Short-term Roll Out

Cost Savings of 120 Bps in

SG&A/Sales

Headcount reductions

One-time severance payments

Store level service unaffected

Corporate Presentation | Strategy | 14

Fourth Quarter

Intervention of

Underperforming

Stores

Set-up of Performance Review Committee

120 Stores Across Our Geographic Footprint

Review of Lease Agreements

Changes to Assortment

Headcount Review

Possible Closure


Fourth Quarter

Omni channel

Experience

Per Format Platform Development –

Leverage on Current Wallet Share –

Channel Innovation – Human Brands

– Health & Wellness


Fourth Quarter

Strategic Focus

On Brazil

Maneuvering Macro and Political –

Deterioration – Slow Capture of

Synergies - Margin Improvements –

Atacarejo – SG&A





• Key Figures

• Strategy


Contents


2015

Corporate Presentation | Corporate Governance | 19

Ownership Structure

Ownership Structure

The direct and indirect participation of Mr. Horst Paulmann Kemna

and his immediate family in Cencosud S.A. is over 60.03%

60,0% 18,2%

0,7%

21,1%

Controlling shareholders Chilean Pension Funds ADS Others

As of September 30, 2015 Cencosud S.A. capital was made up of

2.828.723.963 common shares held by 1.732 shareholders



• Board elected on April 26th 2013 for the 2013-2016 period

• New Board to be elected in 2016’s AGM, for a period of 3 years

• Seasoned 9 Member Board:

• 3 Family members: Horst Paulmann, Peter Paulmann and

Heike Paulmann

• 2 Independent members: David Gallagher and Richard

Büchi

• Mr. Wong presented his resignation on August 26th 2015

• Board of Directors Committee:

• Roberto Philipps

• David Gallagher (Independent)

• Richard Büchi (Independent)


Board of Directors


• Cencosud has a CSR

strategy for each business,

adapted to each country

they operate.

• Common and defined

groups of interest

• Commitments to each

stakeholder

• Programs that build

internal and external brand

value

Employees

Suppliers

Community

Environment

Customers

Corporate Social Responsibility


Corporate Social Responsibility

ENVIRONMENT

CUSTOMERS

EMPLOYEES

SUPPLIERS

COMMUNITY

HOME

IMPROVEMENT SUPERMAKETS

DEPARTMENT

STORES

WASTE MANAGEMENT

REUSABLE BAGS

HEALTHY NUTRITION

LABOR INCLUSION

Elderly, Disability

DEVELOPMENT OF SMALL

SIZE SUPPLIERS

SEDEX

JUMBO CIRCUS

CORSO WONG

WASTE MANAGEMENT

REUSABLE BAGS

HEALTHY CONSUMPTION

LABOR INCLUSION

Quality of Life - Work

DEVELOPMENT OF SMALL

SIZE SUPPLIERS

SUSTAINABLE COLECTIONS

PARIS PARADE

WASTE MANAGEMENT

ECO EASY

LABOR INCLUSION

SEDEX

“LEVANTEMOS CHILE”

CHALLENGE, A roof for my

country

http://www.google.cl/url?url=http://www.sedexglobal.com/news/blog/&rct=j&frm=1&q=&esrc=s&sa=U&ei=pwv2U-T6LqrSiwLhiYHgCw&ved=0CBUQ9QEwAA&usg=AFQjCNG9zDlnOFXDyL7nU6UUJPHdJwoRGw

http://www.google.cl/url?url=http://www.sedexglobal.com/news/blog/&rct=j&frm=1&q=&esrc=s&sa=U&ei=pwv2U-T6LqrSiwLhiYHgCw&ved=0CBUQ9QEwAA&usg=AFQjCNG9zDlnOFXDyL7nU6UUJPHdJwoRGw

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.

Corporate Presentation | Disclaimer | 23

24

Marisol Fernández León

IR Manager

Phone +562 2959 0545

[email protected]

Natalia Nacif

Senior IR Analyst

Phone +562 2959 0368

[email protected]

Corporate Presentation | IR Contact Information |

Upcoming Events

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Conference

Cancun, Mexico

January 12 thru 14

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Miami , FL, USA

February 29 thru March 2

4Q15 Earnings Release

March 3

After market

Documents

Corporate Presentation Cencosuds2.q4cdn.com/740885614/files/...09.2015-(ENG).pdf1 Figures for the LTM period as of September 2015, translated into USD at end of period exchange rate