Disclaimer The information contained in this presentation has Cencosud and its respective subsidiaries, directors, been prepared by Cencosud S.A. ("Cencosud") for partners and employees accept any responsibility informational purposes only and should not be for any loss or damage of any kind arising from the construed as a request or an offer to buy or sell use of all or part of this material. securities and should not be construed as This presentation may contain forward-looking investment or other advice. No warranty, statements subject to risks and uncertainties and expressed or implied, is provided regarding the factors, which are based on current expectations accuracy, completeness, and reliability of the and projections about future events and trends information contained in this document. The that may affect Cencosud's business. You are opinions expressed in this presentation are subject cautioned that these prospects are not guarantees to change without prior notice and Cencosud has of future performance. There are several factors no obligation to update or keep updated the that may adversely affect the estimates and information contained in this document. The assumptions underlying these forward-looking information in this document is not intended to be statements, many of which are beyond our complete. control. 2
Annual Shareholders’ Meeting The Ordinary Shareholders Meeting held on April 30, 2020 defined: Horst Paulmann 1. Two New Board Members Elected Chairman 2. Approves Dividend Distribution Heike Paulmann Peter Paulmann Dividends 1 % Profit CLP by Stock Stefan Krause Julio Moura 2019 80.1% $32 2018 30.5% $10 Mario Valcarce Jorge Pérez 2017 82.9% $45 Independent 2016 74.9% $50 Members Alejandro Pérez Felipe Larrain 1. They include the provisional and additional dividends made during the year 3
Strong Balance 01 Sheet
Obtained lowest leverage ratio since achieving investment grade in 2011 • Decrease in the gross leverage ratio to 4.16 times, the lowest since 2012 • Net leverage ratio declined to 3.13 times as of March 2020, from 3.27 times in December 2019 and 5.63 times in March 2019 Gross Leverage 1 Net Leverage 1 5.72 5.27 5.48 5.25 5.11 5.06 4.98 4.97 4.91 4.53 4.53 4.52 4.33 4.07 4.16 3.93 3.27 3.13 2012 2013 2014 2015 2016 2017 2018 2019 LTM 2012 2013 2014 2015 2016 2017 2018 2019 LTM Mar 20 Mar 20 1. The leverage does not include One Off of the Sale of RF Peru, Antitrust fine in Chile and Indemnities 5
Improved financial situation through early bond redemption • On March 2, 2020, Cencosud redeemed the bonds due 2021 and 2023. Bonds • This tender offer was for a principal amount of 2021 2023 US$ 876 million and accrued interest of US$ 5 Issuance contract Indenture Indenture million. Issuance date 01.20.2011 12.06.2012 • Effect on extraordinary financial expenses was US$ 97 million, and impact on Cash Flow was Maturity date 2021 2023 US$ 949 million. Interest rate 5.500% 4.875% • This allowed Cencosud's gross leverage to Redemption price 103.34% 109.51% improve to 4.16 times in March 2020 from 5.11 times in December 2019. 6
Strengthened balance sheet and enhanced liquidity management Relevant Figures 1 • Reduced net financial debt by 25% YoY; Mar 20 Dic 19 Mar 19 Total Financial Debt (US$ MM) 4.306 5.696 6.325 • Extended debt duration (in USD) to 7.1 years Cash and equivalents (US$ MM) 392 1.426 377 from 5.5 years following the early redemption Other Financial Assets, Current (US$ MM) 1 363 312 148 of the 2021 and 2023 bonds. Other Financial Assets, Non-Current (US$ MM) 2 310 311 383 Net Financial Debt (US$ MM) 3.242 3.648 5.417 • Average annual maturity for next 5 years is US$ Adj. EBITDA LTM (US$ MM) 968 1.164 1.084 34 million. Net Financial Debt / Adj. EBITDA LTM 3,1 3,3 5,6 Amortizations 1,009 Cost of Funding Mar 20 Dec 19 Mar 19 567 551 USD debt 5.021% 5.033% 5.016% 369 UF debt 2.875% 2.875% 4.301% 185 167 CLP debt 4.700% 4.700% 4.700% 100 55 46 43 29 22 16 13 20 21 22 23 24 25 26 27 28 29 30 41 44 45 1. Figures converted to US $ using the period-end exchange rate for each period. The EBITDA of the ratios does not include the EBITDA of Bank of Perú, nor One Off 2. Mutual funds and derivatives / 3. Derivates 7
Maintain low exchange rate exposition By Currency (excludes cash in US$ and cross currency swaps) Mar 20 Dec 19 • As of March 2020, 22.6% of total cash CLP + UF remains in U.S. dollars (US$ 88.6 USD 97% millions) compared to 70.5% the 4% previous year. • Majority of derivatives have a positive USD CLP + UF 3% mark to market. 96% By Interest Rate (excludes cash in US$ and cross currency swaps) Mar 20 Dec 19 Variable Fixed 4% 96% Fixed Variable 96% 4% 8
Impact of the 2021 and 2023 notes redemption Total Cash Flow Effect US$ Thousand Due to the prepayment of the 2021 and Prepaid Capital 876,428 2023 bonds, Cencosud reduced its 2020 5,172 Interests Redemption Premium 67,517 financial expenses by US $ 80 MM 949,117 Cash Flow Use Improved the Company's net leverage to Total 3.13x from 3.27x as of December 2019 and Financial Result Effect US$ Thousand 5.63x as of March 2019 Redemption Premium 67,517 29,700 Reserve Coverage Total Expenses 97,217 9
Robust liquidity position • In 1Q20 achieved the highest cash position for a first quarter in the last five years. • Entered 2020 having generated the highest FCF of the past 5 years, due to the IPO of Shopping Centers and operational improvements. CLP Mar. Dec. Million 2020 333,654 n.a. 2019 255,935 1,067,564 2018 163,721 284,658 2017 210,730 253,987 2016 251,540 275,219 10
COVID-19 02 Response
Measures to mitigate effects of the Covid-19 pandemic Safety measures Customers We are ensuring our customers safety with the following measures: • Distance of 1 meter between customer in the entry Employees row; • Isolation of at-risk groups (differentiated schedule); Our employees are our main asset, therefore we have implemented the following safety measures: • Maximum capacity per sales floor; • Use of mask and gloves; • Disposable towels for cleaning carts and alcohol • Sanitization of all stores; disinfectant for cleaning hands, both at the entrance and increased dispensers on the sales • Install acrylic plexiglass screens in areas of visual floor. contact with customers; • Psychological support for employees. 12
Covid-19 drove higher SSS in Supermarkets Supermarket Jan-Feb20 Mar-20 1Q20 Supermarket SSS increased above inflation in Chile 8.5% 21.6% 13.2% 1Q20. Argentina 52.2% 73.3% 59.7% Department Stores is the most affected business Brazil 2.6% 6.8% 4.0% Peru 0.3% 8.5% 3.3% unit as SSS were trending above inflation in the first Colombia 9.7% 10.0% 9.8% two months of the year and were hit hardest when stores closed. Home Improvement Jan-Feb20 Mar-20 1Q20 Declines in in-store sales offset by 250% average Chile 8.5% -6.6% 3.3% increases in e-commerce sales in the period. Argentina 1 55.6% -19.4% 55.6% Colombia 1 9.8% -26.0% 9.8% Department Stores Jan-Feb20 Mar-20 1Q20 Chile 5.3% -37.4% 5.3% Peru -0.7% -56.8% -0.7% 1. The SSS calculation excludes stores that were closed more than 10% of the quarter 13
Lock down accelerated online sales growth Short-term initiatives in Supermarkets E-commerce Growth April 2020 Chile • Sales Increase Nro. Tickets Tickets Increase y/y Increased capacity to process orders in new locations and more preparation lines; SM – Chile 517% 149.340 412% • Support from DS and administration staff; SM – Argentina 294% 97.842 134% • Implementation of the night shift; • SM – Peru -9% 36.219 61% Home office assignment. SM – Colombia 459% 69.038 455% Argentina HI – Chile 237% 118.426 130% • Increase in equipment for picking and transport companies; HI – Argentina 229% 41.438 159% • Box of basic and cleaning products; • HI – Colombia 243% 26.339 446% Next steps: BOL (Warehouse Logistics Operation) in stores with front areas for pick ups, warehouse only for picking. DS – Chile 293% 305.094 158% TOTAL 286% 843.736 186% Perú • Greater team to resolve bottlenecks; • Two Hyper Wong specialized in e-commerce; E-commerce Penetration First Quarter • Next steps: CD area for e-commerce only and reduction in Department Home assortment. E-commerce Sales Supermarkets Stores Improvement Colombia 1Q20 2,1% 22,1% 4,5% • Increase in equipment for picking and transport companies; 1Q19 1,7% 12,7% 3,3% • Next steps: website improvement and Dark Store. Var 20/19 (bps) 48,3 940,3 120,0 14
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