Corporate Presentation 1Q17
INVESTMENT HIGHLIGHTS THE STRATEGY LOOKING AHEAD 2
WHY CENCOSUD? PREMIER BRAND PORTFOLIO WITH AN LEADING SOUTH AMERICAN UNPARALLELED GROWTH TRACK INTEGRATED MULTI-FORMAT STRATEGY 1 2 3 MULTI-FORMAT RETAILER 1 RECORD HOLDING VALUABLE LAND BANK 6.2 mm sqm of land bank to fuel Recognized brand portfolio 5 Business Divisions & 5 countries future growth across the region Leadership positions across the region TOTAL SELLING SPACE (‘000 sqm) Market Cap USD 8.2 billion CAGR: 5.0% 135,235 employees 4.387 4.417 4.418 4.238 1,117 retail stores + 54 shopping centers 3.629 3.6 mm sqm of retail space + 788,646 sqm of shopping centers GLA to third parties 2012 2013 2014 2015 2016 PRIVILEDGED POSITION TO BENEFIT LISTED AT BCS 2 SEASONED MANAGEMENT TEAM 4 RATED IG BY MOODY’S AND FITCH 6 5 FROM IMPROVED ECONOMIC ENVIRONMENT Listed on BCS (2004) Sound Corporate Governance standards Leadership positions across the region in line with regulatory requirements for a 46.3% Free Float Peru: fully registered U.S. issuer (NYSE) Daily Avg Trading Volume: USD8.4mm 132,517 sqm land bank 9 Seasoned Board Members Total Trading Volume: USD2,412 mm La Molina Project 3 Paulmann Family members Rated IG by Moody’s and Fitch Argentina 2 Independent members Member of the EME DJSI Turnaround economy Board of Directors Committee: 3.3 mm sqm land bank Total of 3 members; 2 independent 1 Figures as of March 2017 3 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange). Figures LTM march 2017 using a constant Exchange rate of CLP 664 per USD
CENCOSUD: A PAN-REGIONAL MARKET LEADER JV COLOMBIA 3 RD SUPERMARKET 2 ND HOME IMPROVEMENT JV BRAZIL PERU 4 TH SUPERMARKET Leadership position in Northeast, 2 ND SUPERMARKET Minas Gerais, and Rio de Janeiro 4 TH DEPARTMENT STORES JV CHILE ARGENTINA 2 ND SUPERMARKET 2 ND SUPERMARKET 2 ND HOME IMPROVEMENT 1 ST HOME IMPROVEMENT 2 ND SHOPPING CENTERS 1 ST SHOPPING CENTERS 2 ND DEPARTMENT STORES 4 4 Note: Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria)
REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS AND GEOGRAPHY REVENUE BREAKDOWN BY GEOGRAPHY (1Q17) ADJUSTED EBITDA BREAKDOWN BY GEOGRAPHY (1Q17) US$ 258 mm 1 (6.8% Adjusted EBITDA margin) US$ 3,801 mm 3% 8% 10% 2.5% mg 7,5% mg 9% 42% 16% 28% 62% 7.7% mg 10.1% mg 25% CHILE ARGENTINA BRAZIL PERU COLOMBIA • 246 supermarkets • • 282 supermarkets 211 supermarkets • 91 supermarkets • 102 supermarkets • 35 home improvement • • Atacarejo format • 51 home improvement 10 department stores • 10 home improvement • 79 department stores • • 3 different regions • 22 shopping centers • 4 shopping centers 2 shopping centers • 26 shopping centers • • F.S.: JV with Bradesco • Financial services • Financial services F.S.: JV with Colpatria • F.S.: JV with Scotiabank 5 Note: Figures converted to USD using a constant exchange rate of CLP 664.0 per US dollar 5 1 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units minus revaluation of assets. mg= Adjusted EBITDA margin
STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS REVENUE BREAKDOWN BY BUSINESS (1Q17) 1 ADJUSTED EBITDA BREAKDOWN BY BUSINESS (1Q17) 1 US$ 258 mm (6.8% Adjusted EBITDA margin) 3 US$ 3,801 mm 2% 2% Retail accounted for 96% of Complementary Retail accounted for 66% Complementary Revenues Business of Adjusted EBITDA Business 12% 10% 46% US$149mm US$2,732mm 13% 22% 5.4% mg US$47mm US$500mm 6% 72% 9.4% mg 9% US$21mm US$396mm 5.2% mg USUS$38 mm US$90mm 2 46.146.9% mg USUS$72mm US$80mm 74.180.1% mg Department Stores Home Improvement Shopping Centers Financial Services Supermarkets 1 Graph excludes the “Others” Segment. Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units minus revaluation of assets. 6 2 Revenues and Adjusted EBITDA from Shopping Centers doesn`t include related party transactions 6 3 Mg = Adjusted EBITDA margin
PROVEN GROWTH TRACK RECORD 1 • Total selling space grew from 2.6mm (CAGR: Consolidation and synergies sqm in 2010 to 4.4mm m 2 in 2016 7.6%) IPO NYSE Internationalization process • Revenues increased from US$9.3bn in Peru (CAGR: 16,3 16,4 2010 to US$15.4bn in 2016 (CAGR: 8.9%) 8.9%) 15,4 15,4 13,7 11,4 Consolidation in the Chilean market 9,2 9,3 8,2 IPO BCS 1 5,6 Opening of firsts 4,7 supermarkets 3,8 1,0 2,1 1,4 1976 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Revenues denominated in USD using a constant Exchange rate of CLP 669.47 per US dollar 7 7 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)
STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE DEBT BY CURRENCY (AFTER CCS) ● Ongoing efforts to improve the Company’s liquidity OTHERS LATAM OTHERS LATAM position 4,8% 8,0% ● Cencosud has maintained its Investment Grade 19,4% rating since its first international bond issuance 15,3% USD USD ● Fitch Ratings: BBB- (stable) ● Moody’s: Baa3 (stable) 75,8% 76,7% CLP + UF ● Reduced exposure to dollar denominated debt CLP + UF 1Q16 1Q17 NET FINANCIAL DEBT EVOLUTION 1 DEBT AMORTIZATION SCHEDULE (USD MM) 2 4,7 4,3 1.013 4,0 3,7 3,6 3,2 717 652 201 233 214 221 41 15 82 200 52 58 52 41 35 2018 2027 2017 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2030 2031 2041 2013 2014 2015 2016 1Q16 1Q17 8 8 1 Debt denominated in USD using end of period exchange rate of each year 2 Amortization schedule does not consider overdrafts or comex liabilities. Presented net of Mark to market of derivatives (excluding forwards)
EXPERIENCED MANAGEMENT TEAM CORPORATE GOVERNANCE AND BOARD OF DIRECTORS MANAGEMENT TEAM • Sound corporate governance standards in line with regulatory 18 Bronislao Jandzio requirements for a fully registered U.S. issuer (NYSE) Jaime MD of Audit Soler 11 10 years in the CEO • 9 Seasoned Board members: 19 years in the industry Horst industry • 3 Paulmann Family members Paulmann K. • 2 Independent members Rodrigo Dag Rodrigo Hetz Peter Heike Tomás Zavala 6 4 11 3 Larraín Loebenstein • Board of Directors Committee (SVS 1 ): Paulmann K. Paulmann K. HHRR CSM CFO CLM • David Gallagher • Richard Büchi (Independent) Roberto David • Mario Valcarce (Independent) Eric Baset Ricardo Yunge Carlos Madina Philipps Gallagher Matías Videla 25 18 19 20 SCM SM Colombia SM Chile SM Argentina Cristián Julio Moura Eyzaguirre Carlos Mario Cristián Patricio Rivas 22 Campodónico 7 14 8 Mechetti Gutierrez FSM SM Peru GC SM Brazil Independent Mario Richard Valcarce Büchi members Years in # Cencosud 10 14 Antonio Ureta Ricardo Bennett DSM HIM 1 As required under Chilean law, we have established a Directors’ Committee composed of three directors. The Company has also established an audit committee comprised of three non-management members of our Board of Directors. The members are Roberto Philipps, David Gallagher and Cristián CEO: Chief Executive Officer. HHRR: Human Resources. CFO: Chief Financial Officer. CLM: Eyzaguirre, each of whom is independent within the meaning of the SEC corporate governance rules. Our board of directors has determined that Roberto Philipps is “audit committee financial expert” as Corporate Logistic Manager. CSM: Corporate Strategy Manager. SCM: Shopping Centers Manager. SM: Supermarkets Manager. FSM: Financial Services Manager. GC: General Counsel. HIM: Home defined by the SEC. 9 Improvement Manager. DSM: Department Stores Manager. 9
INVESTMENT HIGHLIGHTS THE STRATEGY LOOKING AHEAD 10 10
THE THREE PILLARS OF OUR STRATEGY BUSINESS 1 2 3 OUR CLIENT KEY TRENDS PROFITABILITY Healthy organization Efficiency and productivity Connectivity • Austerity culture Strong organizational culture, with an • Native digital consumer outstanding work environment • Cost control • Digital marketing • Social networks Client centric Health & Wellness Constant growth and • The client comes first strong market share • Organics • Memorable shopping experience • Functional Positive SSS across all • Sustain our differentiation in service geographies except Brazil • Healthy • Client centric culture Sustainable brands i n tune with the Loyalty and Bottom line, environment Data Mining profitability and • Clients • Community cash flow generation • Suppliers • Environment • Collaborators 11 STRONG VALUES 11
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