SUPERMERCADOS PERÚ

Economic and

political context

3

02

+2.3%GDP

1H 2017

1.3pts

Country RiskLowest in the

region

Climate phenomena: Coastal ‘El Niño’.

Political noise: Odebrecht case.

3.2%InflationAugust 2017

Government has contemplated an economicreactivation plan focused on the increase of PublicInvestment.

13,600MM USD

Business confidence indicator, over the 12-montheconomy, is at its highest.

71 points

Private investment forecasts suggest it will return topositive figures from 3Q 2017.

0.8%

Peruvian economy will grow 2.2% in 2017, improvingits performance in the upcoming years.

+3.9%GDP 2018

+4.0%GDP 2019

The Central Reserve Bank of Peru has trimmed itsbenchmark interest rate to encourage consumptionand investment.

3.5%

Source: BCRP, BBVA, JP Morgan, MEF

Public Investmentapproved for 2018

MacroeconomicExpectationsCentral Bank Aug17

Benchmarkinterest rate Sep17

Private InvestmentFCAST 4Q 2017

Consumer confidence indicator remains in thepessimistic side for the sixth consecutive month sofar in 2017.

47 points

Perú at a glance

4

Strategic Goals 2017

Become leaders in Omnichannel

experience

Leading CorporateSocial Responsability

brand

1 2

Global Trends

Customer

ProfitabilityFocus on profitability

through a more efficient operation

7

Favorite supermarketbased on consumerresponses/ Improveshopper experience

3

Market Share Leadership

4

Metro MutiformatStrategy

Become one of thebest workplaces in the retail industry

5 6

GLOBAL TRENDS

Omnichannel

01

01E-commerce

Leader at Perú• 60.9% Share

• +80% participation in WONG vs 2016

• The best NPS of the market (Mar17 Arellano Marketing)

1st and only Supermarket…• With 100% Coverage - Lima Metropolitana

• With solution of purchase and couponing – Mobile App

• With Kiosks & “Wong al Auto”

Closer to the customer• Supermarket with more C&C points

• Georeferenced

• Customized Content

Consistency‏ at all points of contact

01E-Commerce Improvements

Metro.pe

Kiosk assisted sales

“Wong al Auto”

Wong App

Corporate Social

Responsability

02

GLOBAL TRENDS

9

RSE 02Employees

CommunitySuppliers Consumers

Environment

Sustainability Report 2016

CUSTOMER

Favorite

Supermarket

03

11

03Customer

BONUS card - % ShareLoyalty Program

+22% +8% +12% -3%

+20% +12% +3% -8%

IdentifiedSales Transactions

AverageTicketCustomers

IdentifiedSales Transactions

AverageTicket Cusotmers

(*) Data from the Last Quarter

Relaunch Bonus Program incorporating new features and benefits:

• Electronic Purse (Mastercard)

• Mobile App

• 2.2 Bn Identified Customers

• Program allows actions aimed at Top Customers:

12

Loyalty Program 03

601k

1.6 Bn

13

03Couponing

PISO DE VENTA APP KIOSCO

• With a reach of up to 85% of Customers and increasing rate of redemption

• BIG DATA Project: unification of database, customer leakage & pricing model, socialmining, 360 customer analysis and machine learning

14

Becoming the Favorite supermarket 03

o Supply Chain Outsourcing 100% nonfood logistics with DINET operator Automatic Replenishment: 70% Food Grocery Suppliers. Goal 100% Oct17

Implementation FMG Audit Availability levels: 97%

o Improving our Product Proposal 59 product development projects under our own brands

during 2017 Succesful launch of 32 projects 1H 17 Going towards 20% of Market Share (3Q 16%, +4ptos vs 1Q

2016) Standardizing brands throughout the 5 Cencosud countries

Market Share

Leadership

CUSTOMER

04

16

Store Expansions & Renovations 04

Wong Asia Wong La Planicie Wong San Miguel

Stores built to the highest standards and latest worldwide supermarket design trends

Larger, more comfortable and more tech-savvy stores

Important Project Bank: 8 new supermarkets and 12 renovations

CUSTOMER

Multiformat

Strategy

05

18

05Multiformat - Stages

S

T

A

N

D

A

R

D

I

Z

E

S

I

M

P

L

I

F

Y

Be at the

DIFFERENT

Shopping

Missions

19

05Express Corner

Implementation Metro Plaza Lima Norte: March2017

On going +5 stores

Implementation Wong San Miguel: July 2017

On going +3 stores

CUSTOMER

Become one of the

best workplaces in the

retail industry

06

21

06#YoVoyPorLaFelicidad (#IGoForHappiness)

1st Place - Retail

1st Place Ethics & Integrity2017

128 initiatives

29 nominees

112 awarded

68% (2012) 80% (2016)

Courses E-learning 10519

More than 15 thousand Beneficiaries (collaborators and relatives)

9783participants

InclusionProgram

“PROFITABILITY”

Focus on profitability

through a more

efficient operation

07

23

07Cost Efficiency Project

22 weeks4 Consultants GEC

1 CFO + 1 CdG10 average tripsper consultant

9 committees withmanagement

+ de 200 specificexpenses

>50 analyzedaccounts

Restructuring of 7 areas

S/. 650 MM in expenses analyzed

24

07

Self Scanning• Implemented at 11

Metro stores• 7% Sales Share• 15% Transactions Share

Self Checkout• Implemented at 1 Wong• 8% Sales Share• 12% Transactions Share.

Self Service Culture

25

07Tikray

Transactional

POS

Business Intelligence

• Transformational Program: transversal to the whole organization of Supermarkets Peru

• The total investment is US$ 30 MM

• 1st stage in progress: Implementation of new ERP system SAP 6.07 Hana, executed by IBM company