CORPORATE PRESENTATION March...

CORPORATE PRESENTATION

March 2016

• Highlights First Quarter

• Cencosud Snapshot

• Key Figures

• Strategy Cencosud

• Corporate Governance

Corporate Presentation | Contents | 2

Contents

Investment Highlights

Core in food retailing business, more resilient to economic downturns

Premier brand portfolio with high consumer recognition

Corporate Presentation | Highlights First Quarter | 3

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

Investment Grade Company with strong & diversified real estate food print

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

Highlights First Quarter

Corporate Presentation | Highlights First Quarter | 4

Businesses remain resilient with revenues and

Same Store Sales growth in local currency

across the region except Brazil

Adjusted EBITDA margin improved across the

region reaching 7.5% (+149 bps YoY)

Adjusted EBITDA improved 16.9% despite of

currency devaluation across de region

Net Debt/ Adj. EBITDA ratio falls 56 bps vs

1Q15 reaching 3.27x. Excluding one offs the

ratio was 2.86x in 1Q16



• Key Figures



Contents


THE REGION

SCENARIO IN LATINAMERICA AFFECTED BY

ECONOMIC SLOWDOWN

Currency devaluation

against chileanpeso reflects

economic slowdown

Good expectations for possible politic

changes

Confidence will be a key factor to deal with more informed and empowered customers

Instability in Brazil affects

the expectations of

the region

1 2 3 4

Corporate Presentation | Cencosud snapshot | 7


• 284 Supermarkets

• 50 Home

improvement

• 22 Shopping centers

• 90 Supermarkets

• 9 Department

Stores

• 4 Shopping

centers


• Atacarejo format

• 3 different regions

• JV Bradesco


• 10 Home

improvements


• JV with Colpatria

Cencosud in the Region

Operations started in

1978


• 35 Home improvements

• 78 Department Stores


• JV Scotiabank

Operations started in

1982Operations started in



2012

87Store

Departments

937Supermarkets

53Shopping Centers

95Home

Improvement


Strong brand Portfolio,

with high consumer recognition

High and low end brands

Fourth Quarter

Overview by Country:

Revenues

38.9%

28.9%

14.6%

9.3%8.3% Chile

Argentina

Brazil

Peru

Colombia

Revenues LTMUS$ 16,158 milion1

Andean Region

USD 1,338 MM

USD 1,505 MM

USD 6,278 MM2

Atlantic Cost

2,366 USD MM

4,670 USD MM


1 Figures for LTM as of March 2016, translated into USD at end of period exchange rate ( CLP / USD 669,8 ) 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.

Fourth Quarter

Overview by Country: Adjusted

EBITDA

Adjusted EBITDA LTM USD 1,238 MM3

Andean Region Atlantic Cost

Presentación Corporativa | Cencosud en una mirada |

53.4%30.1%

2.2%9.8% 4.4%

Chile

Argentina

Brazil

Peru

Colombia

USD 55 MM

4.1% mg

USD 122 MM

8.1% mg

USD 662 MM2

10.5% mg

USD 27 MM

1.1% mg

USD 373 MM

8.0% mg

1 Figures for 2016, translated into USD at end of period exchange rate ( CLP / USD 669,8 ) 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 105,038

11

Fourth Quarter

Overview by Business: Revenues

Revenues LTM USD 16,158 MM1,2,3


USD 372 MM

USD 252 MM2

Others:

USD 19 MM3

USD 11,750 MM

USD 2,158 MM

USD 1,606 MM

1 Translated into USD at CLP/USD 669,82 Financial Services figures exclude Financial Services Chile 3 Shopping Centers figures only reflect revenues and adjusted EBITDA contributed by third party transactions.

72,6%

9,9%13,3%

2,3%1,7%0,1%

Supermarkets

Department Stores

Home Improvement

Shopping Centers

Financial Services

Others

Fourth Quarter

Overview by Business: Adjusted

EBITDA


USD 290 MM

78.1% Mg

USD 100 MM2

39.7% Mg

Others:

USD - 136 MM

USD 685 MM

5.8% Mg

USD 211 MM

9.8% Mg

USD 88 MM

5.5% Mg

Adjusted EBITDA LTM USD 1,238 MM1,2,3,4

1 Translated into USD at CLP/USD 669,82 Financial Services figures exclude Financial Services Chile 3 Adjusted EBITDA (excluding all one-off charges of CLP 105,038 million)4 Shopping Centers figures only reflect revenues and adjusted EBITDA contributed by third party transactions.

55,3%

7,1%17,1%

23,4%

8,1%-11,0%

Supermarkets

Department Stores

Home Improvement

Shopping Centers

Financial Services

Others

3RD SUPERMARKETS2ND HOME IMPROVEMENT

1st SUPERMARKETS4th STORE DEPARTMENTS

2nd SUPERMARKETS2nd HOME IMPROVEMENTS2nd SHOPPING CENTERS2nd STORE DEPARTMENT

4th SUPERMARKETSNORTHEAST (#2)

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

2nd SUPERMARKETS1st HOME IMPROVEMENT2nd SHOPPING CENTERS

Strong Brand Portfolio

with high consumer recognition

Corporate Presentation | Cencosud Snapshot | 14

Regional presence / Market position

Fourth Quarter

2.2

3.94.8

5.9

9.5

8.6

9.711.8

14.3

16.2

16.7

Colombia

15.5

2015 1Q16 LTM

A Development Story thru

Organic Growth & Acquisitions

Acquisitions and Revenues (USD bn)1


1 Figures translated into USD at end of period exchange rate as of December 2015 (CLP/USD 669,8).

16.1

Fourth Quarter

Fix73%

Variable27%

1 Figures translated into USD at the end of the period of March 2016 (CLP/USD 669,8).2 Net Financial Debt/ Adj. EBITDA ratio excluding baking operations.

3In 3Q15 faire value of derivatives was reclassified from “Other gains/losses” to “Net financial Costs” and “Income/loss of FX foreign variations. 4Ratios from 2014’ and 2015 are comparable,

5 After CCS6 Net Financial Debt ratio (Adjusted EBITDA excluding one offs CLP 105,038 millions)

Breakdown by Interest Rate5

60%16%

19%

3%

0% 1%

1%

CLP

UF

USD

BRL

COP

PEN

ARS

Leverage ratio2,3,4

2012 2013

4.6

2014 2015

3.43.7

3.3

1Q16

3.27

2,866

Breakdown by currency5




1T15 1T16

3,6

Fourth Quarter

Net Financial Debt Evolution (USD BN)1

1 Figures translated into USD at the end of period exchange rate as of March 2016 (CLP/USD 669,8).2 Considers only principal amortizations and excludes banking operations.

Amortization Schedule (USD MN)2

2012 2013

6,316

2014 2015

4,6844,265

3,239

1Q16

294

127

231 213

51

780

18

1.218

34

699

50 40

213

4014

81

355

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2045

Investment Grade Company:BBB- with stable outlook by FitchBaa3 with negative outlook by Moody´s

1Q15

4.227 3.641






• Key figures



Contents


Revenue Performance

• Decreased revenues mostly explained by currency

devaluation in Colombia, Brazil and Peru against CLP

• In local currency, business remain resilient with positive

SSS, except of Brazil

Adjusted EBITDA Performance

• Strong Performance from financial services, department

stores and supermarkets divisions

• Considering constant exchange rates YoY, Adjusted EBTDA

would have increased by 33,5%

• Adjusted EBITDA Margin expanded 149 bps.

All figures are in CLP million

1Q15 1Q16

2,652,647

2,483,844

185,581

1Q15 1Q16

158,759+16.9%

Delivering Improvements in Profitability

19

-6.4%

19Corporate Presentation | Key figures |

+7.5%+6.0%

Focusing on Core Businesses

Standby IPO of the Shopping Centers due

to market conditions

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

Continue divesting non-core assets

As of March, 16 properties are with

sale agreement.

Gas Station business sale in Colombia,

process in final stage

Corporate Presentation | Key figures | 20



• Key Figures



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 Cencosud | 22

Fourth Quarter

Omnichannel experience

- Supermarkets


Chile: delivery to tourist cities for holiday season, be mobile, drive through, locker retreat, exclusive offers & new web sitepurchase in store delivery to home

Argentina: offline purchase, new web site in Disco and Vea, new platform in Jumbo, non food delivery

Peru: new platform in Wong, drive though, click&collect, ecommerce in Metro

Colombia: market place, drive through in Jumbo, food delivery in Jumbo and Metro

Fourth Quarter

Omnichannel experience

– Home Improvement


Increased assortment (SKUs)Argentina: MobileChile: new web siteColombia: social network

Argentina: new contact centerChile & Colombia: service quality poll

Argentina: delivery options & drive throughChile: click &collectColombia: telesales

Argentina: distribution center improvementChile: debit paymentColombia: reduce delivery time

Argentina: electronic bill & online paymentColombia: improve back office

Fourth Quarter

Omnichannel experience –

Department Stores


• Wifi in Store

• Increase online assortment

• Click & collect

• Ship from store

• Drive through

• Customer social media

channel

Mobile App

Websphere commerce

upgrade

Change in leadership &

governance

Order & delivery tracking

Back Office enhancement

Fourth Quarter

Strategic Focus On

Brazil


Maneuvering Macro and Political –Deterioration – Slow Capture of Synergies – Margin Improvements – Atacarejo – SG&A



• Key Figures



Contents


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

2015

Corporate Presentation | Corporate Governance | 28

Ownership Structure

Ownership Structure

The direct and indirect participation of Mr. Horst Paulmann Kemna

and his immediate family in Cencosud S.A. is 60%

As of March 31, 2016 Cencosud S.A. capital was made up of

2,842,459,622 common shares held by 1.732 shareholders.

Corporate Presentation | Corporate Governance | 28Corporate Presentation | Corporate Governance | 28

0,80%17,55%

59,76%

21,89%ADRs

Chilean Pension Funds

Controlling shareholders

Others

1200

1300

1400

1500

1600

1700

1800 2015


Stock Market Performance last twelve months

$ per share (CLP)

Average amount transacted LTM as of March 31 2016

USD7.9 MM

+14.2%

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

• Board elected on April 29th 2016 for the 2016-2019 period.

• Seasoned 9 Member Board:

• 3 family members: Horst Paulmann, Peter Paulmann and Heike Paulmann

• 2 Independent members: Mario Valcarce y Richard Büchi

• Board of Directors Committee:

• Roberto Philipps

• Mario Valcarce (Independent)

• Richard Büchi (Independent)

Board of Directors

30Corporate Presentation | Corporate Governance |

• 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

IMPROVEMENTSUPERMAKETS

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




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 | 33

Marisol Fernández León

IRO

Phone +562 2959 0545

[email protected]

Natalia Nacif

Senior IR Analyst

Phone +562 2959 0368

[email protected]

Upcoming Events

Valentina Klein

IR Analyst

Phone +562 2200 4395

[email protected]

• June 14 - 16

2016 CalGEMs Conference of

Bank of America

• August 3 – 4

10th Annual Credit Suisse

CEO/CFO Mid-Summer LatAm

Conference

• September 13 - 14

Cencosud Day in Buenos Aires

Corporate Presentation | IR Information | 34

Contact

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