Corporate Presentation Fourth Quarter Results 2014
Fourth Quarter www.cencosud.com 2 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.
Fourth Quarter www.cencosud.com 3 • Positive revenue trends, boosted by encouraging supermarket SSS • Aggressive promotional activities maintain 4Q14 Highlights market share • Delivered on stated goals for Brazil and Colombia • Successful international bond offering provides financial flexibility • Recent progress towards strengthening balance sheet with closing of Scotia JV
Fourth Quarter www.cencosud.com 4 Positive Revenue Trends in Food Retail • Supermarket Sales Up By 7,7% YoY • Positive Trends in SSS: • Chile Accelerated to highest in 11 quarters • Colombia sustains recent progress posting above inflation expansion • Brazil posts positive SSS for first time in 7 quarters while positing positive EBITDA • Maintained Market Leadership Despite Competitive Environment With Gains in Chile Supermarkets YoY • D-Stores in Peru Deliver Positive SSS for First Time While Colombia HI Are Positive for First Time in 5 Quarters, in Both Cases With Positive Profitability Trends
Fourth Quarter www.cencosud.com 5 Revenue Evolution (CLP mm) Adjusted EBITDA Evolution (CLP mm) + 6,9% -5,6% W/ DO W/ DO • Argentina, Chile & Colombia Adj, Ebitda contracted partially offset by increases in Peru & Brazil • Revenue gains in all five business divisions and • Chile D-Store Adj, Ebitda dropped 40% as a result of weaker countries YoY consumption and challenging competitive environment • Chile, Colombia & Peru SSS Above Inflation Data • Argentina Adj Ebida fell on ARS depreciation of 18% and higher Showing Favorable Trend for Supermarkets SG&A on 2 nd installment of collective bargaining agreements • Peru D-Stores Greenfield & Colombia Home • Colombia Showed a decrease due to lower results in the credit Improvement Showed Positive SSS Momentum card business, partially offset better Ebitda in all the other 3 business units
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Fourth Quarter www.cencosud.com 8 Supermarkets Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) SSS evolution by country (local currency) • • Revenue pushed upwards by positive SSS in all of our markets Argentine operations posted a 64% EBITDA contraction YoY Figures in CLP million mainly as a result of the 2 nd instalment of Collective bargaining • 12 Net Store Openings YoY or 1.,45% Selling Space Growth agreements and weaker consumption environment • • Colombia continued to improve SSS trend with above inflation numbers Brazil posted a weak YoY EBITDA generation; despite positing its highest Ebitda of the last 5 quarters, with sequential • Santa Isabel in Chile consolidating market share improvement vs 3Q14. The company reduced headcount in 4,5% YoY • Brazil posts market share gains versus 3Q14 • Chile, Colombia & Peru Posted EBITDA growth of 7,1% on increased promotional activity and SG&A dilution -
Fourth Quarter www.cencosud.com 9 Home Improvement Department Stores Figures in CLP million • Revenue increased 6.2% on positive SSS across markets & the opening of 3 • 95.4% revenue expansion from our Peruvian operations was on the new stores since December 2013 back of 3 new stores since 4Q13 and positive SSS, • Ebitda generation fell on 2nd installment of collective bargaining • Ebitda generation fell on greater promotional activity in Chile due to agreements in Argentina and tougher competitive environment in Chile weaker spending, strategy helped curb inventories in 17 days YoY • Colombia ebitda loss narrowed 35% -
Fourth Quarter www.cencosud.com 10 Shopping Centers Financial Services Figures in CLP million - Higher revenues across the region, led by Chile and Peru - Revenues were boosted by larger portfolio in all markets - Shopping Center EBITDA due to higher occupancy rates in - Financial Service Ebitda grew as a result of better Chile & Peru performances in all markets but Colombia -
Fourth Quarter www.cencosud.com 11 Costanera Center Leasing IPO Real Estate Division Process BTG Pactual to Advise on Possible Share Offering • Traffic mitigation works associated with Landbank of over 6MM sqm current stage ("3A") completed 48 Shopping Centers across the region • Currently in the process of reception of traffic mitigation works and the first 15,000 sqm of GLA from involved authorities • Strong interest for office space at landmark location • In negotiation / closing stage with a number of prospective tenants Total Revenues of CLP • Lease revenues in line with market terms 214,850 MM (excluding related parties) Total GLA of over 2,000,000 sqm
Fourth Quarter www.cencosud.com 12 Financial Ratios Net debt evolution (US$ bn) Net leverage (net debt / EBITDA) 4,3 Breakdown by Rate Breakdown by Currency (After CCS) (After CCS)
Fourth Quarter www.cencosud.com 13 Debt Amortization Schedule (USD million) as of December 2014 FINANCIAL DEBT USD MM Proforma Debt Amortization Schedule (USD million) after bond issuance FINANCIAL DEBT USD MM
Fourth Quarter www.cencosud.com 14 Positive momentum in Colombia to enhance performance Focus on core retail operations: Supermarkets, Home Closing Improvement, Department Stores Examine options to further strengthen balance sheet Comments Potential to unlock value from real estate assets Discretionary spending at D-Stores seemingly bottomed out in 4Q14 in Chile
14 Marisol Fernández León Upcoming Events IR Manager Phone +562 2959 0545 BTG Pactual Conference – London mariasoledad.fernandez@cencosud.cl April 13 & 14 Shareholder Meeting – Santiago Natalia Nacif Ignacio Reyes Miranda April 24 Senior IR Analyst Senior IR Analyst Phone +562 2959 0368 Phone +562 2959 0804 JP Morgan Conference – London May 19 through 21 natalia.nacif@cencosud.cl Ignacio.reyesmiranda@cencosud.cl
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