Covenants Harmonization November 2011 Content 1. Cencosud 2. - PowerPoint PPT Presentation

Covenants Harmonization November 2011

Content 1. Cencosud 2. Outstanding bonds and current debt covenants 3. Covenant changes 1

Leading multi-format retailer in Latin America Sales LTM*: US$ 14.14 bn EBITDA LTM*: US$ 1.19 bn Colombia  Sales June-11: US$ 38.8 mm Assets**: US$ 13.55 bn  Assets: US$ 0.2 bn Equity: US$ 5.94 bn Peru Brazil  Sales June-11: US$ 604 mm  Ebitda June-11: US$ 41.6 mm  Sales June-11: US$ 1.57 bn  Assets: US$ 1.4 bn  Ebitda June-11: US$79.8 mm  Assets: US$ 2.2 bn Chile Argentina  Sales June-11: 3.09 bn  Ebitda June-11: US$ 338.5 mm  Sales June-11: US$ 2.12 bn  Assets: US$ 7.7 bn  Ebitda June-11: US$ 177.1 mm  Assets: US$ 2.4 bn * Note: LTM 2Q 2011 **Note: Does not include banking assets Exchange rate: $468,15 2

Sustained growth during the past decade... Sales and Assets Evolution* (US$ mm) SALES ASSETS 13.162 We have begun a new 12.201 +27% +28% cycle of growth CAGR CAGR 4.913 4.876 1.427 1.433 2001 2005 2010 2001 2005 2010 x 8.6 x 9.2 Exchange rate at year end Argentina 1st Jumbo, 1st Jumbo, Santiago Buenos Aires 1976 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Cencosud *Note: Does not include banking assets 3

… that has yielded extraordinary results … Sales evolution (US$ bn) Share price evolution + 20% + 35% 4.000 3.500 12,2 10,5 9,4 8,1 7,4 5,9 5,5 5,0 3.000 2005 2006 2007 2008 2009 2010 1S 2010 1S 2011 2.500 EBITDA evolution (US$ bn) 2.000 1.500 + 20% 31% 1.000 1.039 767 689 667 637 500 494 485 412 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 2005 2006 2007 2008 2009 2010 1S 2010 1S 2011 Source: Bloomberg Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP; figures for 2Q 2010 and 2011 in IFRS 4

… and opportunities to continue growing Total Argentina Brazil Chile Colombia Peru Supermarkets 631 256 stores 137 stores 172 stores 66 stores Home 82 Improvement 49 stores 29 stores 4 stores Department Stores 35 35 stores Shopping Centers 25 14 malls 9 malls 2 malls Financial Retail 4,0 0.8 mm cards 0.9 mm cards 2 mm cards 0.3 cards 5

… and a long-term financing structure … Amortizations as at Dec. 31st 2008 800 Duration 4.67 Y 700 594 558 600 500 385 351 400 300 221 138 200 119 67 68 69 70 70 57 52 100 25 26 27 Duration increase 18 7 7 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Low refinancing risk EBITDA 2008 Amortizations as at June 30 2011 1.400 Duration 7.44 Y Long-term financing 1.200 1.000 819 800 Balance re-engineering 600 process 365 336 (144A / IFRS) 400 268 251 240 230 167 117 117 115 99 200 98 99 80 81 62 48 39 41 17 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Otros 144 Bonos Jumbo Bonos Linea N° 443 EBITDA LTM Source: Cencosud 6

… as well as a different asset mix in the portfolio Revenues by business 2005 (US 4.91 bn) Revenues by business – 2011 LTM (US 14.14 bn) Financial Shopping Services Centers 4% 2% Departament Stores Financial Shopping 9% Services Centers 3% Departament 2% Home Stores Improvement 13% 13% Home Improvement Supermarkets 13% Supermarkets 72% 69% 4.9 bn in Assets 12.7 bn* in Assets Source: Cencosud *Note: Does not include banking assets 7

Content 1. Cencosud 2. Outstanding bonds and current debt covenants 3. Covenant changes 8

Outstanding bonds series Outstanding Date of Redemption Nominal Series Line Maturity Date Debt limit Year amount Issuance date rate Non pre- BJUMB- B 268 UF 2,276,059 01-Sep-01 01-Sep-26 6.50% Financial debt < 1.3x 2001 payable Outstanding Date of Redemption Nominal Series Line Maturity Date Debt limit Year amount Issuance date rate BCENC-A UF 4,000,000 15-Mar-06 15-Mar-27 Mar-2011 / Par 4.25% BCENC- C 443 UF 4,500,000 01-Jul-06 01-Jul-27 4.10% Liabilities net of cash <1.5x 2005 Jul-2011 / Par BCENC- D UF 1,500,000 01-Jul-07 01-Jul-28 Jul-2012 / Par 4.00% Total UF 10,000,000 Outstanding Date of Redemption Nominal Series Line Maturity Date Debt limit Year amount Issuance date rate BCENC- E UF 2,000,000 07-May-08 07-May-18 May-2013 3.50% 530 BCENC- F UF 4,500,000 07-May-08 07-May-28 May-2013 4.00% BCENC- J UF 3,000,000 15-Jan-09 15-Oct-29 Oct-2018 5.70% Non pre- BCENC- K $ 30,000,000,000 01-Mar-09 01-Mar-14 7.00% Net Financial Debt <1.2x 2008 payable 551 BCENC- L UF 1,000,000 28-May-09 28-May-15 May-2013 4.10% BCENC- N UF 4,500,000 28-May-09 28-May-30 May-2019 4.70% BCENC- O $ 54,000,000,000 15-Jun-11 01-Jun-31 Jun-2018 7.00% Total* UF 18,818,182 Outstanding Date of Redemption Nominal Series Line Maturity Date Debt limit Year amount Issuance date rate 144A N/D USD 750,000,000 20-Jan-21 Par 5,50% No financial covenant 2011 12-Jan-11 *Note: Considers a UF value of 22,000 CLP 9

Current debt margin (borrowing power) Line N° Debt limit Ratio as at June 2011 Debt margin (MM USD*) Year 268 Financial debt < 1.3x 0.65x 3.596 2001 443 Liabilities net of cash <1.5x 1.27x 1.270 2005 530 and 551 Net Financial Debt <1.20x 0.63x 3.157 2008 Figures in USD MM* June 2011 Cash 117 Debt margin at June 2011: Callable liabilities 7.189 Maximum net of cash liabilities = 1.5 * 5,562 = US$ 8.34 BN Net of cash liabilities margin = US$1.27 BN Financial liabilities 3.634 Maximum Financial Debt = 1.3 * 5,562 = US$ 7.23 BN Equity 5.562 Financial Debt Margin = US$ 3.60 BN Liabilities net of cash 7.072 Maximum Net Financial Debt = 1.2 * 5,562 = US$ 6.67 BN Net Financial Debt Margin = US$ 3.16 BN Net Financial Debt 3.517 *Note: Exchange rate used = 500 10

Content 1. Cencosud 2. Outstanding bonds and current debt covenants 3. Covenant changes 11

Reasons for changing the debt limit - To have a set of covenants that will allow for continuous company growth (organic growth) - To seize investment opportunities through inorganic growth (acquisitions) - To have an appropriate debt margin (borrowing power) given the seasonal nature of the business; intensive WC requirements - To have an appropriate debt margin (borrowing power) to absorb exchange rate volatility - The proposed covenant can be considered as conservative and has been validated by the market in the last 7 placements (UF 18.8 MM) - Cencosud has successfully gained access to the international markets, raising 750 million USD in just one transaction (approx. 16.6 million UF) - To simplify control and measurement by virtue of a single set of covenants Current Debt Level Proposed Debt Level Line N°443: Liabilities net of cash /Equity < Net Financial Debt / Equity < 1.2x 1.5x Line N° 268: Financial Debt / Equity < 1.3x 12