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Earnings Presentation
Fourth Quarter 2015
Agenda
Highlights of the period 1
2 Segment Overview
3 Balance Sheet Financials
3 Q&A
3
Robust financials exiting 2015
Strong financials driven by successful cost
management
Adjusted EBITDA margin the highest in 12
quarters, reflecting double digit growth
EBITDA across core businesses
Net income rise 87% reflecting a 61%
increase in operating income
Net debt to Adj. EBITDA ratio declines 90
basis points to 2.8x, excluding one offs, the
lowest in last 15 quarters
4th Quarter Earnings Release Fourth Quarter Highlights
Metro Minka - Peru
Revenue Performance
• Modest revenue growth despite currency depreciation
in Brazil and Colombia.
• Positive SSS in local currencies across all businesses,
except Brazil.
Adjusted EBITDA Performance
• Adjusted EBITDA performance showed positive effect on the
measures taken on 2Q and 3Q15.
• EBITDA margin of 9.3%, the highest in 12 quarters.
All figures are in CLP million
4Q14 4Q15
3,014,883 3,048,854
210,512
4Q14 4Q15
284,403
+35%
Delivering Improvements in Profitability
4
4th Quarter Earnings Release
+1%
Actively Working to Improve Margins Commercial strategy drives 190 bps
expansion in gross margin.
Negotiations with suppliers.
Improvements in pricing strategy and
promotional activity.
Continued progress in SG&A control program.
8% reduction in headcount YoY
Decrease travel & discretionary
expenses
Non-performing store program implemented.
120 stores under program, all already
under review
8 stores closed to date
17 stores have already showed a
turnaround in performance
5
4th Quarter Earnings Release
Easy Rio Cuarto - Argentina
Focusing on Core Businesses
Possible Shopping Centers IPO
structuring the transaction along with
Investment Banks
Continue divesting non-core assets
On March 1 Cencosud sold its minority
stake on Mall Viña del Mar for
UF4,275,000
Completed sale of Colombian and
Peruvian pharmacy businesses and
sign of long-term lease agreements
Gas Station business sale in Colombia,
process in final stage
Sale of unproductive real state in Chile
moving forward
6
4th Quarter Earnings Release
VEA Recoleta Larrea - Argentina
Agenda
Highlights of the period 1
2 Segment Overview
3 Balance Sheet Financials
3 Q&A
• Revenue decline reflects currency
depreciation in Brazil and Colombia.
• Positive SSS across the region
except Brazil
• Second consecutive quarter of
positive SSS at Prezunic
Supermarkets: Positive EBITDA in all countries
• Successfully managed our
commercial strategy to improve gross
margin.
• Growth reflects improved
performance in Argentina, Peru and
Colombia
• Positive EBITDA Contribution from all
countries
4Q14
2,242,506
4Q15
2,159,578
4Q14
146,603
4Q15
159,814
8
4th Quarter Earnings Release
All figures are in CLP million
Revenue Performance Adjusted EBITDA Performance
-4% +9%
4Q14
319,994
4Q15
343,414
4Q14 4Q15
27,893
14,782
Department Stores: strong performance
• SSS growth above inflation
in Chile and Peru.
• Strong Christmas season,
particularly in apparel and
toy sections.
• Improved profitability in Chile,
Johnson achieved its first year of
positive EBITDA.
• Peru increasingly narrows its loss and
creates synergies in our Chilean
operation.
9
4th Quarter Earnings Release
All figures are in CLP million
+7% +89%
Revenue Performance Adjusted EBITDA Performance
• Resilient revenue growth in
Argentina and Chile.
• Colombia impacted by the
devaluation of the COP.
355,572
422,258
4Q14 4Q15
38,112
4Q14 4Q15
56,148
Home Improvement: solid growth and profitability
• Gross Margin in Argentina boosted by
better agreements with suppliers.
• EBITDA contribution reflects adjusted
commercial strategy and a leaner
operation.
• For the first time Colombia achieved
positive EBITDA in 4Q15. 10
4th Quarter Earnings Release
All figures are in CLP million
+19%
Revenue Performance Adjusted EBITDA Performance
+47%
• Improved performance in Argentina due
to new contracts.
• Chile profitability improved despite
higher land taxes due to the Tax reform.
• Peruvian and Colombian operations
impacted by higher energy costs.
63,352
72,290
4Q14 4Q15
49,035
4Q14 4Q15
63,998
• Top line growth as a result of
higher rents and stable
occupancy across Argentina
& Chile.
• Rent from Pharmacies in
Colombia partially offset
COP devaluation.
Shopping Centers: resilient business
11
4th Quarter Earnings Release
All figures are in CLP million
+14% +31%
Revenue Performance Adjusted EBITDA Performance
• Chile financial services reported figures explained by the deconsolidation of its financial retail business
following the JV with Scotiabank.
• Provision rate continues to show healthy trend.
• Portfolio continues to grow across the footprint.
• Cost of funding increases across the region.
81,073
46,961
4Q14 4Q15
24,770
4Q14 4Q15
16,578
Financial Services: positive effect after JV
34,420 8,902
• Variation in blue reflects business growth/decrease excluding Chile in both period.
• Variation in white reflects business growth/decrease including Chile in 4Q14. 12
4th Quarter Earnings Release
All figures are in CLP million
-42%
+36%
-33%
+86%
Revenue Performance Adjusted EBITDA Performance
Agenda
Highlights of the period 1
2 Segment Overview
3 Balance Sheet Financials
3 Q&A
* Excludes CLP 105 bn of one off events in 2015 (severance payment, adjustment in inventories, write off Brazil, gain due to JV with Scotiabank)
Since 3Q15 Fair Value of Derivatives was reclassified from “Other gains/losses” to “Net Financial Cost” and “Income/Loss from foreign exchange variations”. For further
information please refer to note 35 on Consolidated Financial Statements.
Net debt evolution (US$ bn) Net leverage (net debt / Adj. EBITDA)
Financial Ratios: reducing debt and leverage
14
4th Quarter Earnings Release
2012 2013
6,316
2014 2015
4,684 4,265
3,239
2012 2013
4.6
2014 2015
3.4 3.7
3.3
2015 *
2.8
3.0x
Financial Ratios: comfortable liquidity position
15
4th Quarter Earnings Release
250
125
224 203
49
778
17
1.217
32
696
47 37
200
37 14 76
350
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045
Debt amortization schedule
All figures are in CLP million
In 2016 includes USD 112 MM in overdraft for working capital
Breakdown by Rate
(After CCS)
Breakdown by Currency
(After CCS)
33%
67% 82%
18%
Financial Ratios: managing rate and currency debt exposure
16
4th Quarter Earnings Release
Fix 44%
Variable 56%
December 2014
Fix 73%
Variable 27%
December 2015
73%
11%
8%
3% 4% 1%
December 2014
CLP (incl. UF)
USD
BRL
COP
PEN
ARS
64% 32%
2% 1% 1%
December 2015
Agenda
Highlights of the period 1
2 Segment Overview
3 Balance Sheet Financials
3 Q&A
Our business saw a strong improvement
in the second half of 2015
Revamped commercial strategy to
provide sustainable gross margin
improvement
Strong year-end with the highest
EBITDA margin in the last 3 years
despite economic slowdown
Delivering on strategic plan designed by
management to improve profitability and
financial position
Facing 2016 with leaner cost base and
focus on each business
Closing Comments
18
4th Quarter Earnings Release
Jumbo e Easy San Bernardo - Chile
19
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.
4th Quarter Earning Release
Jumbo e Easy Costanera Center - Chile
IRO
Phone: +562 2959 0545
Natalia Nacif
4th Quarter Earning Release
Senior IR Analyst
Phone: +562 2959 0368
Marisol Fernández León Upcoming Events
• March 10&11
Citibank 24th Annual Citi Latin
America Conference, NYC
• March 15&16
Larrain Vial 10th Andean
Conference, Santiago
• April 5&6
Bradesco, 3rd Brazil Investment
forum, Sao Paulo
