Cencosud2013Corporate Presentation
The information contained herein has been prepared by Cencosud S.A.(“Cencosud”) solely for informational purposes and is not to be construed asa solicitation or an offer to buy or sell any securities and should not betreated 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 opinionsexpressed in this presentation are subject to change without notice andCencosud is under no obligation to update or keep current the informationcontained herein. The information contained herein does not purport to becomplete and is qualified in its entirety by reference to more detailedinformation included in the preliminary offering memorandum. Cencosudand its respective affiliates, agents, directors, partners and employeesaccept no liability whatsoever for any loss or damage of any kind arising outof the use of all or any part of this material.
This presentation may contain statements that are forward-looking subject torisks and uncertainties and factors, which are based on current expectationsand projections about future events and trends that may affect Cencosud’sbusiness. You are cautioned that any such forward-looking statements arenot guarantees of future performance. Several factors may adversely affectthe estimates and assumptions on which these forward-looking statementsare based, many of which are beyond our control.
Cencosud2013Corporate Presentation
Cencosudat a Glance
To be one of the most profitable and prestigious retailers in Latin America
Cencosud2013Corporate Presentation
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2005Cencosud Cencosud
2013
368 Supermarkets; 0.7 mn sq meters
19 Shopping Centers; 0.4 mn sq meters
44 Home Improvement; 0.4 mn sq meters
22 Department Stores; 0.1 mn sq meters
895 Supermarkets; 2.3 mn sq meters
29 Shopping Centers; 0.8 mn sq meters
82 Home Improvement; 0.7 mn sq meters
78 Department Stores; 0.4 mn sq meters
RevenuesEvolution(USD MM)
CARG 2005 – 2013: 20%
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Investmenthighlights
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Large scaleMulti-format retailerIn Latin America
Cencosud is a leading multi-format retailer in south America
Leadership Positions In All Markets Net Revenue Breakdown1
1 Breakdown by business exdude Other segment, calculated on figures for the last twelve months ended March 20133 Last twelve months ended September 2013; figures converted to USD based on end-period as of December 2012, March 2012 and March 2013 exchange rate of 479.96, 487.44 and 472.03 respectively
LTM net revenues of US$19,063 million3
2nd Supermarkets2nd Home Improvement Stores2nd Shopping Centers2nd Department Store
4th Supermarkets• Northeast Region (#1)• Minas Gerais (#2)• Rio de Janeiro (#3)
1st Supermarket1st Home Improvement2nd Shopping Centers
2nd Supermarkets
1st Supermarkets
PERU 8% COLOMBIA 2%
BRAZIL 23%
CHILE 40%ARGENTINA 27%
By Country
2% Shopping Centers12%
Home Improvement
10% DepartmentStores
3% FinancialRetail
74% Supermarkets
By Format
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With a well recognized brand portfolio
Nº Stores Selling Space (m2) % of Sales1
55,2%
17,4%
9,3%
18,1%
2,252,827
712,105
378,872
772,708
895
82
78
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Supermarkets
Home Improvement
Department Store
Shopping Centers
High End
Mid-To-Low End
High End
Mid-To-Low End
9% of Selling Space2
75,6%
11,3%
8,3%
1,8%1 Excludes segment “Others”2 Figures as of March 2013
Opportunity to continue Expanding in high-growth, underpenetrated markets
Attractive macroeconomic environment and favorable demographics…
GDP per capita 2012 (US$ thousands)
6.1 11.5 8.1 12.5 15.4 49.6
Source: IMF
Solid real GDP growth
6,5% 6,4%
3,8% 3,7%3,5%
0,2%
6,0%
4,2%4,5%
4,1% 4,5%
3,0%
Peru Argentina Colombia Brazil Chile U.S.
CAGR 07‐11 CAGR 12‐16
Average: 4.7%
Average: 4.8%
2012 Population (mm)
These 5 countries represent 63% of Latin America’s GDP
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…in markets with substantial opportunities for sustained growth in the retail sector
Home improvement area per capita (sqm/’000s)
Supermarkets area per capita (sqm/’000s)
Department stores area per capita (sqm/’000s)
Underpenetrated food retail sector
Source: ILACAD and US Census Bureau, figures as of December 2011
Retail sales in shopping malls (%)
Source: BMI, INDEC, ICSC, ABRASCE, local banking regulators, ABECS, equity research and US Census Bureau
Credit cards per capita
n.a.
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Retail momentum in our growth markets
BRAZIL• Rise of the purchasing power• Focus on middle class population• Informality reduction• 2014: World Cup• 2016: Olympic Games
PERU• Baby boom generation• Lowest unemployment level
COLOMBIA• Growing formal sector• Greater purchase power• Lower risk
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Opportunities in different markets
Organic growth + acquisitions
Organic growthMulti-format StrategyExpansion
Cash cowLead in profitabilityStrong cash generation
Organic growth
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Expertise doingbusiness in challengingenvironments
Targeted programs to engage consumer, boost productivity & profitability
Brazil:• SAP implementation on going, ending stores incorporation by July and Distribution Centers by August• Unification process of check outs: Emporium• Completing unification process of vendor contracts among all flags in Brazil
Colombia:• Rebranding and Segmentation• Assortment redefinition• Cultural Transition
Marketing & Advertising:• Johnson new image: new celebrities communicating and building a close and convenient brand
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Navigating challenging market conditions
Experience managing in high-inflation markets• Local Management• Managing costs• Dealing with currency controls
Multi-decade experience in Argentina• Presence in the country for the last 3 decades• Always delivered positive EBITDA• Inflation managed and leveraged by negative WC,
payment terms longer than cash income• Growing formal market because of tougher labor and
tax regulations• Argentina self funding own growth plus strong cash
delivery• Net debt / Ebitda < 0,50%, healthy and strong
financial position and crisis management
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Track record of successful acquisitions
Cencosud has a proven track record in successfully integrating acquisitions and realizing synergies
IPO in the Santiago Stock
Exchange
2009 LTM 1Q13
Number of stores
Growth (%)
Selling space (million sqm)
Net revenues (US $ million)
6482.5
10,975
1,085
4.1
19,063
67%
64%
74%
Adjusted EBITDA (US $ million) 2 945 2,019 114%
Demonstrated ability to integrate and improve acquired businesses
Net debt / EBITDA 3 3.07x 3.66x 19%
Chilean market consolidation
Colombia
Expansion in key metrics
Acquisitions and net revenue evolution (US$bn)
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Improving Balance SheetFinancials
Revenues evolution (US$ bn)
Adjusted EBITDA (US$ mm) and margin (%)
648 825 982 906 1,085Stores:
8.5% 8.3%
6.7% 6.2%
7.2%
2010 2011 2012 1Q 2012 1Q 2013
Cencosud has consistently delivered strong financial results…
+18%
+22% CAGR
2010 2011 2012 1Q 2012 1Q 2013
+12% CAGR
+9%
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With an improving balance sheet after the Company’s increase in leverage
Net leverage
Total debt / equityInterest coverage
Net debt evolution (US$bn) 22
Breakdown by issuer
Amortization schedule (US$mm)
Breakdown by currency Breakdown by interest rate
Source: Cencosud Note: Includes cross-currency swapsNote: Includes cross-currency swaps
Cencosud S.A.
SubsidiariesVariable rate
Fixed rate
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Diversified Debt Structure
Roadmap for organic growth and continued integration
OrganicGrowth
Capex (US$mm)1
Country Capex (USD mm) DetailsChile USD 242 million 17 supermarkets, 1 Paris Store, 1 Easy and Costanera Center
Brazil USD 116 million 15 supermarkets
Peru USD 80 million 10 supermarkets, 5 department stores and one shopping center
Argentina USD 23 million 5 supermarkets and 2 Easy stores
Colombia USD 80 million 1 supermarket, 1 Easy store and rebranding
Maintenance USD 90 million
IT USD 100 million
1Excludes acquisitions
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CHILE:• Continue Johnson integration
Unlocking value from existing assets
PERU:• Paris Department Stores• Financial Retail: Building up
portfolio
COLOMBIA:• Discontinue cash & carry
format• Rebranding supermarkets as
Jumbo & Metro• Improve layout of stores• Integrate regional operation• Synergies from real state to
develope Home Improvement and shopping centersBRAZIL:
• SAP Implementation in Prezunic and Bretas• Consolidated negotiations with suppliers• Reduce Shrinkage• Improve employee profitability per sqm
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Takeaways
• Positioned to benefit from growth economies and consumption across South America
• Scale brand diversity offers exposure to different client bases
• Track record and brand diversity offers competitive advantage
• Continuing to grow via organic openings
• Integrating acquisitions to drive greater sales & efficiency
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Segment Overview 1Q13
Source: Cencosud. Figures converted to USD, exchange rate by the end of March 2012 and 2013
SSS evolution by country in local currency
SUPERMARKETS
Adjusted EBITDA evolution (US$ mm)
Revenue evolution (US$ bn)
+19%
+11%
1Q 2012 1Q 2013
1Q 2012 1Q 2013
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HOME IMPROVEMENTSSS evolution by country in local currency
Adjusted EBITDA evolution (US$mm)
Revenue evolution (US$bn)
+11%
+6%
1Q 2012 1Q 2013
1Q 2012 1Q 2013
1Q12 1Q13
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DEPARTMENT STORES
* Non comparable figures. In 1Q13, SSS consolidate Johnson stores.
Adjusted EBITDA evolution (US$ mm)
Revenue evolution (US$ bn)
+15%
+38%
1Q 2012 1Q 2013
1Q 2012 1Q 2013
SSS evolution by country in local currency
1Q12 1Q13
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Adjusted EBITDA evolution (US$ mm)
SHOPPING CENTERS
Revenue evolution (US$ bn)
+39%
1Q 2012 1Q 2013
+47%
1Q 2012 1Q 2013
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FINANCIAL SERVICES Gross loan portfolio evolution
CHILE ARGENTINA PERU
Provision/ Loans (%)
406.317418.316
429.526
1Q11 1Q12 1Q13
MM CLP
7,2%7,6%
7,9%
1Q11 1Q12 1Q13
185239 277
1Q11 1Q12 1Q13
MM USD
9,1%6,9% 5,4%
1Q11 1Q12 1Q13
44
75
1Q12 1Q13
11,5%14,5%
1Q12 1Q13
Provision/ Loans (%)Provision/ Loans (%)
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