Retail Finance Divisin October 2017 I Retail Finance Strategy 01 - PowerPoint PPT Presentation

Retail Finance División October 2017

I Retail Finance Strategy

01 Vision Be recognized as the best customer experience Retail Finance company in Latin America. Become a strategic partner for Retail goals while reaching high profitability Keeping a global view of Cencosud 3

02 Retail Finance Business Evolution 4

II Retail Finance Business Information

5.9 million cards in force 01 June 2017 Cencosud Others cards Total Cards jun-17 VISA/Mas Private Tot VISA/Mas Private Tot VISA/Mas Private TOTAL CHILE 945 479 1.423 - 576 576 945 1.055 1.999 ARG 1.143 453 1.596 0 1.143 453 1.596 PERU 501 9 511 24 48 72 525 57 582 COL 383 159 542 0 0 0 383 159 542 Desafíos Cobranding 383 383 0 383 0 383 Privada 159 159 0 0 159 159 2017 BRASIL 354 29 383 0 842 842 354 871 1.225 gbarbosa 272 20 292 0 842 842 272 863 1.134 bretas 83 9 91 0 0 0 83 9 91 TOTAL 3.326 1.129 4.456 24 1.467 1.490 3.350 2.596 5.946 6

Total Sales with credit cards 02 MMUSD Total Sales w/CC Total Sales w/CC 26% 727% Last 12 month Total Sales w/CC Last 12 month 32% Total Sales w/CC Total Sales w/CC Last 12 month 47% 193% Last 12 month Last 12 month Exchange rate real 2017 for all countries . 7

Total Sales with credit cards 03 MMUSD 5.548 87% 2.970 2012 LTM June 2017 Exchange rate real 2017 for all countries . 8

Portfolio 04 VENTAS con TARJETA MMUSD MM USD 2012 June 2017 Portfolios Carteras 2.012 junio-17 Var RF Chile 902 1.268 41% RF Argentina 76 587 675% RF Peru 55 156 182% RF Colombia 183 257 40% RF Brasil 162 179 11% DRF 1.379 2.447 78% Exchange rate real 2017 for all countries . 9

Avg Portfolios 05 VENTAS con TARJETA MMUSD MM USD Dólar 2017 para todos los países 10

06 Retail Finance Division - Regional Risk MM USD Acum DRF REAL PLAN M Credit card sales 2.858 2.687 Stock outstanding 2.447 2.286 Stock outstanding average 2.377 2.275 Stock Provisions 194 183 Var Provisions -12,6 -22,5 Woff -118,5 -103,6 Recovery 24,4 25,8 Risk charge -106,7 -100,3 Woff / stock outs average (%) 10,0% 9,1% Risk charge / stock outs average (%) 9,0% 8,8% Stock provisions / Stock outs (%) 7,9% 8,0% Dólar 2017 para todos los países 11

III Retail Finance Main challenges 2017

01 Maintain the profitability of the business with the new market conditions (New Regulations of the 1 BCRA / Macroeconomics Environment Argentina) 2 Maintain the positioning of TC as leader within its category. Challenges 2017 Consolidate the attractive value proposition for the client with 3 new financial products whose financing is tied to market tools (Financial Trust). Strategic support to Retail in a complex scenario of government 4 change 13

02 Maximize EBITDA in a regulatory change scenario (Rotational Fine, interest rate reduction and Invoices with 1 automatic interest rates and consequent loss of interest recipe) Challenges Develop Commercial activity with sustainable sales 2 growth and customer base to strengthen synergies with 2017 retail Optimize the operation looking for efficiency and greater 3 productivity (migration of the GB Legacy portfolio) 14

03 Deepen financial product growth, continue customer migration to open card and maintain a good level of new 1 accounts Achieve high growth rates and card usage out of Cencosud 2 Desafíos 2017 New card for Upside segment 3 Have a single customer base, and start CRM operation 4 (Front End) supported by Teradata. 15

04 Create occasions of use 1 Extend portfolio duration 2 Challenges 2017 Operating efficiency 3 Improve portfolio quality 4 16

05 Growth in active cards, deepening the loyalty 1 base Challenges Migration of the Colpatria points plan to 2 2017 Cencosud Point Plan Cencosud Sales Force Management 3 17

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