Fourth Quarter 2018 1 Disclaimer The information contained in - PowerPoint PPT Presentation

EARNINGS PRESENTATION Fourth Quarter 2018 1

Disclaimer The information contained in this presentation has been Cencosud and their respective affiliates, officers, prepared by Cencosud SA ("Cencosud") for informational directors, partners and employees accept no liability purposes only and should not be construed as a for any loss or damage of any kind arising from the solicitation or an offer to buy or sell securities and use of all or part of this material. should not be treated as giving investment advice or otherwise. No representation or warranty, express or This presentation may contain statements that are implied, is provided in relation to the accuracy, subject to risks and uncertainties and factors, which completeness or reliability of the information contained are based on current expectations and projections herein. The views expressed in this presentation are about future events and trends that may affect the subject to change without notice and Cencosud has no business of Cencosud. You are cautioned that such obligation to update or keep current the information forward-looking statements are not guarantees of contained herein. The information contained in this future performance. There are several factors that presentation is not intended to be complete. can adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. 2

Executive Summary • Macro environment across the region remained weak, with softer consumption and currency volatility across most of our markets. Despite these headwinds, Supermarkets Brazil and Department Stores Peru posted positive Adjusted EBITDA 1 during the quarter. • At constant exchange rates, revenue increased 9.2%. Under previous accounting standards, revenues decreased 7.7% due to the depreciation of most currencies against CLP. As reported, and including IAS29 (Argentina as hyperinflationary economy) revenues increased 3.7%. • Online channel sales increased 27.5% YoY at constant currency, reaching a penetration of 3.6% 2 over total retail sales up from 2.6% in 4Q17. In 12M18, online revenues grew 37.2% and penetration reached 3.0%, up 98 bps from 2.1% in 12M17. • At constant exchange rates, Adjusted EBITDA decreased 8.2%. Under previous accounting standards, Adjusted EBITDA decreased 22.9%. As reported, Adjusted EBITDA decreased 11.9% mainly due to the hyperinflationary accounting adjustment in Argentina. 1 Adjusted EBITDA: Gross profit + Other income by function + Other gains (losses) – SG&A + D&A + profit of equity method associate - Asset Revaluation 2 Considers supermarket formats at all countries with the exception of Brazil, Department Stores Chilean Operations and Home 3 Improvement in the 3 countries

4Q18 Highlights Consolidated 4Q18 Results Under Previous Accounting Standards IAS29 As Reported (A) (B) (C) (D) Inflation Conversion 4Q18 1 4Q17 2 4Q18 6 Chg. YoY Chg. YoY Chg. YoY Effect 4 Effect 5 Constant CLP mn CLP mn Ex-IAS29 3 CLP mn CLP mn CLP mm (%) Currency Revenues 2,630,179 2,849,851 -7.7% 9.2% 155,687 169,878 2,955,743 3.7% Gross Profit 741,122 829,226 -10.6% 10.3% 64,236 67,299 872,657 5.2% Gross Mg. 28.2% 29.1% -92 bps 29.5% 43 bps SG&A (623,089) (665,209) -6.3% 14.9% (49,710) (52,054) (724,853) 9.0% SG&A (% of revenues) -23.7% -23.3% -35 bps -24.5% -118 bps Adjusted EBITDA 186,133 241,319 -22.9% -8.2% 20,940 5,955 213,028 -11.7% Adj. EBITDA Mg. 7.1% 8.5% -139 bps 7.2% -126 bps Net Profit 216,446 319,555 -32.3% -5.6% (88,612) 12,317 140,151 -56.1% Net Profit Mg. 8.2% 11.2% 4.7% 1 Excludes the adjustment by hyperinflation in Argentina 2 As Reported 3 Considers the quarter results with previous accounting methodology, using an average exchange rate per month in Argentina. 4 ‘Inflation effect’ reflects the nine months period results from Argentina updated by inflation. 5 ‘Conversion effect’ reflects the translation from ARS to CLP figures of the 3 months period using end of period exchange rate as of December 2018. 6 Includes the adjustment by hyperinflation in Argentina. 7 (A) + (B) + (C) = (D) 4

12M18 Consolidated 12M18 Results Under Previous Accounting Standards IAS29 As Reported (A) (B) (C) (D) Inflation Conversion 12M18 1 12M17 2 Chg. YoY Chg. YoY 12M18 6 Chg. YoY Effect 4 Effect 5 Constant CLP mn CLP mn CLP mn CLP mn CLP mn (%) Ex - IAS29 3 Currency Revenues 9,755,154 10,456,987 -6.7% 9.2% 331,553 (440,705) 9,646,002 -7.8% Gross Profit 2,776,594 2,998,160 -7.4% 10.3% 149,825 (165,779) 2,760,640 -7.9% Gross Mg. 28.5% 28.7% -21 bps 28.6% -5 bps SG&A (2,385,165) (2,583,084) -7.7% 14.9% (111,062) 130,516 (2,365,711) -8.4% SG&A (% of revenues) -24.5% -24.7% 25 bps -24.5% 18 bps Adjusted EBITDA 635,599 702,851 -9.6% -8.2% 55,163 (48,623) 642,139 -8.6% Adj. EBITDA Mg. 6.5% 6.7% -21 bps 6.7% -6 bps Net Profit 257,241 440,136 -41.6% -5.6% (49,247) (17,400) 190,594 -56.7% Net Profit Mg. 2.6% 4.2% 2.0% 1 Excludes the adjustment by hyperinflation in Argentina 2 As Reported 3 Considers the quarter results with previous accounting methodology, using an average exchange rate per month in Argentina. 4 ‘Inflation effect’ reflects the nine months period results from Argentina updated by inflation. 5 ‘Conversion effect’ reflects the translation from ARS to CLP figures of the 12 months period using end of period exchange rate as of December 2018. 6 Includes the adjustment by hyperinflation in Argentina. 7 (A) + (B) + (C) = (D) 5

2019 Focus: Financial Flexibility Objective Scope Objetives two-fold: reduce debt at Cencosud and boost Chile, Peru IPO Shopping Centers organic growth in Shopping Centers (brownfield and and greenfield). Colombia Reduce working capital needs through a focus on inventory Regional Improve working capital days, obsolescence and cash Divestiture of non-core assets • JV Financial Retail in Peru Maximize the financial retail operation working with a Peru banking partner that supports a greater development of the • JV Financial Retail in Argentina Argentina credit card portfolio Colombia • Sale of Gas Stations Sale of non-strategic land bank. In Chile, the Company divested land in Santiago for USD 25 MM. Proceeds to • Divestiture of non-strategic land Regional reduce indebtedness at Cencosud level bank Organic growth to be financed by internal cash flow • Selective Organic Growth Regional generation 6

N EAR T ERM F INANCING O PTIONS S HOPPING C ENTERS IPO + L OCAL B OND I SSUANCE 1. Shopping Centers IPO • Banks Mandated • Registration at CMF (pending) • Transaction Expected Q2 2019 2. Local Bond by Cencosud Shopping • Amount : UF 10 mm equivalent to USD 400 mm • Tenor : bullet 10 years • Banks : Santander & Scotiabank • Process: prospectus presented to CMF and first round of comments answered 7

JV A GREEMENT FOR B ANCO CENCOSUD IN PERU • JV transaction approved on March 1 st , 2019 • Cash inflow of USD 100 mm • Proceeds will be used to pay down debt • Net EBITDA USD 138.5 mm, tax of USD 42.7 mm and net income USD 95.7 mm to be included in the 1Q19 results 8

B RAZIL  Commercial model:  Greater autonomy in pricing and supply, but unified commercial strategy  IT developments to improve the end-to-end process with suppliers  Negotiation focus on Front vs. Back (i.e. discount in the price list instead of bonuses, this generates less dependence on suppliers for closing results)  Reduce the share of promotions over total sales  Focus on destination / service categories: Butchery, Bakery, Fruits and Vegetables. Differentiation vs Cash & Carry  Remodel stores to reduce GLA  Reduce HQ Back Office of 6% vs previous year 9

2019 Focus : Operational Efficiencies Across the Region • Reformat existing stores / increase sale over square meter sale and reduce fixed costs • Improve business processes such as price management, promotions and assortment of our stores Supermarkets • Search for improvements in sourcing / planning processes and logistics operations capabilities to face the development of e-commerce. • Strengtheing own brands and exclusive imported products Home • Optimize internal processes and commecial agreements with suppliers to improve profitability Improvement • Right-size selling areas, with emphasis on GLA around 2,000 m 2 average store size. • Transformation of Johnson stores to primarily an apparel format • Redefine and automate processes to improve the customer experience and service in the Department stores, through the introduction of internally developed RPA (Robotic Process Automation). Stores • Establish and develop logistics as a competitive advantage. Enhance C&C through the expansion of new points of pick-up and the offer of product dispatch within a specified time frame 10