Chile Supermarkets

Country´s Context

1

Deterioration in consumer confidence

Source: GFK Adimark

Perception of the economy Index 1981-2016 Historical series of 36 years**

(Index 0-100 pts.*) Country´s Context,

Chile

*Note: 0 indicates pessimism and 100 indicates optimism. **Note: IPEC index was originally published on a annual basis (1981-1985), afterwards on a quarterly basis (1986-2001) and since 2002 its calculated on a monthly basis

¿What is happening with consumption?

Slight contraction in consumption Higher frequency, lower volume Preferences on Supermarkets vs Hypermarkets Smart shopping Increasingly “promotional” customer Labelling Law

Country´s Context,

Chile

Our SG&A challenges Increase labor costs

Impact of “7° Sunday” new bill Surcharge of 30 % for Sundays workday Minimum wage increase

Electric rate hikes and reassessment

Increased security expenses

Country´s Context,

Chile

Our Brands

2

OUR POSITIONING Jumbo exists for guests to enjoy and be happy in every shopping

experience

/Functional Benefits • Wider assortment and quality

of products • Better Shopping experience • Greater product availability • Savings through relevant

promotions

DIFERENTIATION

/ Emotional Benefits Trust Gratification Surprise

SERVICE, SERVICE, SERVICE

/ Brand personality Accomplice and ally, empathy Uses its service orientation to transform situations and turn everyday moments in exceptional experiences

/ Target Highend Men and women

OUR POSITIONING Santa Isabel exists to make everyday convenience promise come true for

customers with the seal of Cencosud quality

/ FUNCTIONAL BENEFITS CONVENIENCE - Quality in products and infrastructure - Physical and emotional closeness - Competitive prices with the

best promotions - Promptness, ease purchase process and express checkout

DIFERENTIATION

/ EMOTIONAL BENEFITS •Savings •Coverage •Identification

Everyday convenience, with the

seal of Cencosud quality

/ BRAND PERSONALITY Santa Isabel is cheerful, feminine, close and current. It is a reflection of Chilean middle class women: with a strong practical sense, always ready to give the best to their own. A woman seeking convenience, but without leaving quality apart.

/ TARGET Extended middle class women (C2C3D).

Growth

3

1. Organic Growth:

We plan to open new stores in the format of Supermarkets

and Hypermarkets

Growth in upcoming years will be leveraged in:

Valdivia Viña del Mar

Independencia Arica

La Serena

2. SSS Growth:

Remodeling

New image and layout Jumbo La Reina, Santiago

2. SSS Growth

New image and layout Santa Isabel, Claudio Vicuña, Quilpué

Remodeling

2. SSS Growth:

Remarcable Campaigns

Leading the shopping experience Products Availability Self-service products Express check out Personalized promotions Jumbo commitments

Efficiencies & Profitability

4

1. Centralization of productive processes: Bakery Pasta Prepared Food

We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability

1. Centralization of productive processes : Bakery Pasta Ready Meals

We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability

1. Centralization of productive processes : Bakery Pasta Ready Meals

We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability

2. Logistics processes:

Launch of new Perishable DC Implementation of Unit picking Warehouse Consolidation

New perishable DC has a storage capacity of 162,575 boxes and a sorter that can move 90,000 boxes per day, from a total flow of 120,000 boxes

The new perishable DC will have an exclusive rest area for truck drivers

3. Inter-business negotiations:

Safety, cleanliness, shipping freightage, among

others

4. Plans for underperforming stores:

Closed stores and evaluation process for the closing of other stores

Significant profitability improvements in under performing stores Cluster Mix Layout Sub-formats developments Specific promotional activity

Efficiency & profitability

Omnichannel

5

1. Up grade web platform

Permanent focus on Omnichannel, to continue to lead

2. Launch of our Mobile App

With our new App Mobile, another channel is opened on our Omnichannel strategy

2. Launch of our Mobile App

With our new App Mobile, another channel opened on our Omnichannel strategy

3. More and better services

Click and Collect (5 stores + 16 new stores), Drive Through (4 stores + 14 new stores)

We continue to offer the best Omnichannel experience to our customers

3. More and better services

Click and Collect in Lockers, located in gas stations, subway, residential sectors, etc.

In the last quarter 2016, we will implement the click and collect in lockers at 4 locations outside our stores

3. More and better services

Shop at the store and Home delivery (4 stores), anytime of the day, 90 minutes after passing through express checkout

Pilot delivery in 2 hours

More flexibility for our customers

Before Now

Customers and Society

6

We will continue working on being active brands on business development, in a sustainable way

3 Pillars define our actions

Quality of life Environmental innovation

Conscious supply

Leaders in working on sustainable business

Quality of life Campaign Cook with all: Education to customers to avoid waste

More parks for Chile: to growth in Green areas and improve life quality of our neighbors

Campaign Eat Healthy: Healthy eating Program

Free From: Product development of specific food needs

Environmental Innovation

Portal Rancagua: 1st store in Chile with a 100% of renewal energy

Clean points development in our stores

Save energy consumption and carbon footprint program

Incentives to use reusable bags to our customers

Leaders in working in a sustainable business

Conscious Supply Working program for small suppliers for the development of differentiation products

Best practices certification for our private label products

Lower environmental impact certification at FFVV products

Work in conjunction with small suppliers to provide preferential payment terms

Leaders in working in a sustainable business

We thank our customers and collaborators, the recognition of our management as a leader Supermarket chain in Chile

Prohumana Jumbo one of the 9 more sustainable companies in Chile

Corporate Reputation (Reputación Corporativa) Jumbo the only distinguish supermarket

Mutual de Seguridad Recognition to Santa Isabel

Procalidad Prize Jumbo 1° Place Satisfaction Customers Supermarkets

Lealtad Prize Jumbo 1° category in supermarkets

Plenus Prize Recognition to Jumbo for employing the elderly

¡THANK YOU!