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Corporate Presentation

First Quarter Results 2015

First 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.


1Q15 Highlights

• Revenue expansion in all divisions mainly

fueled by Supermarkets and Home

Improvement.

• Department Stores SSS back to positive

territory with gross profit gains.

• Colombia continues to deliver positive SSS

in Food retail and Home Improvement.

• Significant expansion of gross margin

drives Adj. EBITDA growth

• Closed Scotiabank financial services

transaction


Food Retail and D-Stores

leading top line growth

• Robust SSS in Chile supermarkets.

• Santa Isabel repositioning gaining additional speed

• Stable gross margin with more efficient pricing strategy

• Declining traffic trend broken

• Further top line growth curbed by negative currency

swings in the COP and BRL.

• D-Stores bouncing back from 2014 lows.

• Positive SSS from Chile and Peru greenfield

• Gross margin recovery following improved

currency pass thru and better pricing

• Inventories in Check


Food Retail in Brazil

Undergoing High Competitive

Pressures

• Depreciation of BRL and soft demand lead to negative

SSS & revenue contraction from Brazilian supermarkets.

• SAP rollout yielding results in gross profit through better

performance management

• Focus on profitability: EBITDA generation at around 2%

according to guided by management.

• Management changes in Brazil laying ground to later

develop improved commercial strategy.

• Leaner operations; Additional SG&A curbs & COGs

management to come


Consolidated Revenue

Evolution

• Revenue gains across all division despite

unfavorable currency swings in Colombia and

Brazil.

• Positive SSS across all markets and businesses

except Brazil.

• Colombia Home Improvement recovering SSS

traction on better product mix and recovering

construction industry in Bogota area.

Consolidated Adjusted EBITDA

Evolution

• Ebitda expansion on Supermarket improvements

in Peru, Brazil and Argentina.

• Department Stores posting Ebitda expansion of

over 100% on improved Chile performance.

• Home Improvement booked a reduction in Ebitda

generation on new store openings across its

footprint, labor contingencies in Argentina and

migration to new product mix in Colombia.

.

Fig

ure

s in C

LP

mill

ion

Results By Business


Revenue Evolution

Adjusted EBITDA Evolution

• Positive SSS in Argentina and stable currency led top

line gains in the division.

• 13 Net Store Openings YoY or 1.6% selling space

Growth.

• Chile recorded outstanding 1Q15 SSS performance

on recovering Santa Isabel.

• Price investment strategy in Peru continues to yield

SSS gains.

• Aggressive competitive scenario in Brazil and slowing

economy lead to negative SSS.

Fig

ure

s in C

LP

mill

ion

SSS evolution by country

(local currency)

Supermarkets

• Peru Ebitda jumped 85.7% on expanding gross

margin and curbed SG&A.

• Brazil Ebitda growth was fueled by expanding gross

margin and SG&A cuts.

• Ebitda in Argentina posts expansion of 7.4% on

positive SSS and stable gross margin.

• Chile and Colombia posted lower Ebitda generation

on labor contingencies in Chile and higher headcount

in Colombia. Colombia margins remained stable

303

813


Fig

ure

s in C

LP

mill

ion

Home Improvement

• Revenue up 19% on positive SSS across all

markets led by Argentina.

• Ebitda for division dropped on greater SG&A from

Argentina on labor contingencies and accounting

changes at Blaisten, collective bargaining

agreements and one off in Chile.

• Colombia continues to improve performance.

Department Stores

• Gains in revenue on positive SSS in Chile and Peru.

• Progress in EBITDA on improved pricing and currency

management.

• Improved inventory management leading to reduced

working capital needs.

34.143


Fig

ure

s in C

LP

mill

ion

Shopping Centers

• Revenue growth in all markets; Chile mainly

explained by retroactive lease collection for

antenna space and renegotiation of lease

agreements with Ripley.

• Shopping Center EBITDA contracted to higher

real estate taxes paid in Chile and Argentina

partially offset by higher occupancy rates in Chile,

Argentina & Peru.

Financial Services

• Argentina and Peru lead in top line growth on greater

portfolio.

• Lower risk in Brazil explains greater contribution to

revenues and Ebitda.

• Lower EBITDA in most markets was the result of

higher cost of funding

40.243

- 4.6%

- 21.1%

36.173 28.542


Effective Tax Rate

• Chile

• Higher income tax rate of 22.5% vs. 20% in 1Q14

• Non- Cash effect of un-claimable tax losses at a HoldCo level of CLP

4,217 million (FUT effect)

• Brazil:

• Badwill due to corporate reorganization

• Non-Cash unrecoverable Tax Losses at our Brazilian Sub

• Total Effect of CLP 6,559 million

• Colombia

• Higher income tax rate of 39% vs. 34% in 1Q14

• Newly created wealth tax (non-deductible tax expense) as a one time

effect in the 1Q15 for the next 2 years

• Accelerated depreciation of tax goodwill Higher income tax in Colombia

due to tax reform

• Total effect of CLP 4,010 million

Conciliation


Financial Ratios Cencosud estimates it can bring down its net financial leverage to under 3.0x by

YE15

Net debt evolution

(US$ bn)

Net leverage

(net debt / EBITDA)

Breakdown by Rate

(After CCS)

Breakdown by

Currency

(After CCS)


Debt Amortization Schedule (USD million) as of March 2015

Chile Financial Services deal with Scotiabank materialized on

May 1st 2015.

Following reception of funds our liquidity position also

improves substantially.

FINANCIAL DEBT

USD MM

Amortizations as of March 2015

Amortizations Proforma as of March 2015

Chile food strategy yields

above inflation SSS.

Positive momentum in

revenue across most division

D-Stores recovering with

some weak spots in April due

to weather related factors.

Leverage down closer to

target as of 2Q15.

Progress on Real Estate IPO

and Costanera Center.


Upcoming Events

Bank of America CalGems

Conference

Los Angeles, CA

June 2 thru 4

Credit Suisse Annual Mid

Summer Latam Conference

New York, NY

Aug 5 & 6

2Q15 Earnings Release

August 28, 2015

After market

Marisol Fernández León IR Manager

Phone +562 2959 0545

[email protected]

Natalia Nacif Senior IR Analyst

Phone +562 2959 0368

[email protected]

Ignacio Reyes Miranda Senior IR Analyst

Phone +562 2959 0804

[email protected]

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