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Corporate PresentationThird Quarter 2016
Index
Highlights Third Quarter
Cencosud Snapshot
Strategy Cencosud
Financials
Corporate Governance
2
HIGHLIGHTS THIRD QUARTER
• Revenue expansion in local currency in all markets, except Brazil. Revenue
decreased 6.6% YoY in CLP as a result of the devaluation of the Argentine
peso (38.3%), Peruvian sol (5.9%) and Colombian peso (4.3%).
• Increased traffic in Supermarkets Chile, and Department Stores Chile and Peru
• Better SSS performance in Chile, Argentina and Brazil when compared to 2Q16
• Despite currency devaluation, Adjusted EBITDA grew 11.5% and margin
expanded 100 bps, mainly driven by improved performance at most
operations and a low comparison basis .
• Non recurring events resulting from the implementation of the strategy to
drive sustainable profitable growth:
• Divestiture of Teleticket in Peru
• Severance payments and provisions of inventory obsolescence in 3Q15.
• Net profit reached CLP 34,950 million, reflecting a CLP 64,851 million
increase due to better performance at most operations, the positive impact
of the exchange difference and non-recurring events in 3Q15.
3
Index
Highlights Third Quarter
Cencosud Snapshot
Strategy Cencosud
Financials
Corporate Governance
4
CENCOSUD IN THE REGION
244 Supermarkets 35 Home Improvement 78 Department Stores 25 Shopping Centers JV Scotiabank
209 Supermarkets JV with Bradesco
89 Supermarkets 9 Department Stores 4 Shopping Centers
102 Supermarkets 10 Home Improvement 2 Shopping Centers JV with Colpatria
285 Supermarkets 51 Home Improvement 22 Shopping Centers
Since
2007Since
1978Since
1982Since
2008Since
20125
3º SUPERMARKETS2º HOME IMPROVEMENT
1st SUPERMARKETS4th DEPARTMENT STORES
2º SUPERMARKETS2º HOME IMPROVEMENT2º SHOPPING CENTERS2º DEPARTMENT STORES
4º SUPERMARKETSNORTHEAST (#2)
MINAS GERAIS (#1)RIO DE JANEIRO (#3)
2º SUPERMARKETS1º HOME IMPROVEMENT2º SHOPPING CENTERS
Regional Presence / Market Position
6
Opportunities by Country - Chile
A country with a solid economy, growing below its potential
Key openings for our main brands
Landbank of 2.7 mm sqm
Full multiformat, 6 retail flags + shopping + financial services
Strong growth of the financial business together with scotiabank
Leaders in e-commerce food, strong growth in non-food
Costanera project expansion
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Opportunities by Country - Argentina
We expect a change in the economy trend for 2017:
Strong project pipeline, in our own land
Closeness format at Jumbo
The market is increasing its formality level
The market is opening to imports
We are leaders in e-commerce
Consolidated team / strong local player
8
Opportunities by Country - Brazil
End of recession, growth from 2018
Renowned brands, with history and prestige in their markets
We have a successful Atacarejo format, with positive growth
We have built a local team of excellent level, acknowledged by the market
Transformational initiatives in supply chain, pricing, selection and efficiency
Commercial synergies, improving margin and competitiveness
9
Opportunities by Country - Peru
Political change, confidence in the country’s economy
Higher growth and lower inflation expectations
Young country: 2/3 of the population in full production, savings and investment capacity
Low penetration of the modern channel
Potential for a 3 times growth of Paris share
Excellent land bank
Wong with an unbeatable positioning in the high segment
The best loyalty program - bonus
Strong development of own brand
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Opportunities by Country - Colombia
Consolidated team with experience in the local market
We grow more than our main competitors
Omnichannel, e-commerce and telephone sales development
Profitability opportunity for our current assets
Our brands are consolidating
Great development potential together with landbank and unrivalled locations
Easy format showing 2-digit growth for the last 2 quarters
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Strong Brand Portfolio, with high consumer recognition
87Department
Stores
96Home
Improvement
929 Supermarkets
53Shopping Centers
High and lowend brands
12
Overview by Country: REVENUES
Revenues LTM in US$
Andean Region
2.827 USD MM
663 USD MM
580 USD MM
Atlantic Cost
1.035 USD MM
1.826 USD MM
Exchange rate: September, 2016 (CLP/USD = 658,0) 13
Chile41%
Argentina26%
Brazil15%
Peru10%
Colombia8%
Overview by Country: ADJUSTED EBITDA
Adjusted EBITDA LTM US$
Andean Region
298 USD MM
159 USD MM
25 USD MM
Atlantic Cost
8 USD MM
159 USD MM
Exchange rate: September, 2016 (CLP/USD = 658,0)Adjusted EBITDA: corresponds to EBITDA +/- Exchange variations +/- Assets Revaluation +/- Result of Indexed Units 14
Chile55%
Argentina29%
Brasil1%
Peru10%
Colombia5%
Overview by business: REVENUES
Revenues LTM in US$
5.024 USD MM
893 USD MM
730 USD MM
115 USD MM
163 USD MM
Exchange rate: September, 2016 (CLP/USD = 658,0)Shopping Centers figures only reflect contribution by third parties
15
Supermercados72%
Mejoramiento del Hogar
13%
Tiendas por Departamento
11%
Servicios Financieros
2%
Centros Comerciales
2%
Overview by business: EBITDA AJUSTADO
EBITDA Ajustado últimos 12 meses en US$
309 USD MM
84 USD MM
37 USD MM
46 USD MM
120 USD MM
Exchange rate: September, 2016 (CLP/USD = 658,0)Shopping Centers figures only reflect contribution by third parties
16
Supermercados52%
Mejoramiento del Hogar14%
Tiendas por Departamento
6%
Servicios Financieros
8%
Centros Comerciales
20%
2,2
3,94,8
5,9
9,58,6
9,7
11,8
14,3
16,216,7
15,5
1976 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3Q16
A Develoment story thru Organic Growth & Acquisitions
10,5
1. Values using Exchange Rates at the end of each periodLTM17
AGENDA
Highlights Third Quarter
Cencosud Snapshot
Strategy Cencosud
Financials
Corporate Governance
18
Guidance and Investment Plan2016 - 2019
Working
Spotlights
Organic
Growth Plan
1. Cost Efficiency and Profitability
2. Omni-quality
3. Financial Strengthening
4. Shopping Centers IPO
5. Non-strategic assets divesting
For the period 2016-2019 investment
contemplates US$ 2.500 million, to be
financed mainly by the generation of own
resources60%
22%
18%
Distribution by type of investment
Organic Growth andRenovation
Technology, Logistics& Omnichannel
Maintenance & CurrentCapex
19
CENCOSUD DNAWe define 6 key competences that build Culture
1. Customer - Centered
2. Individual talents at the service of the Team
3. Permanent evolution and challenges
4. Strong culture focused on People
5. Owner Mentality
6. Accountability
1. Promises generation
2. Focus on the experience as a central axis
3. Authority in relevant / available categories
4. Check out speed
5. Speed and impeccability in post sale service
6. CRM: knowledge and fidelization
Internal ClientHapipiness at Work and Productivity
ConsumerFrom transaction to emotion
Strategic Pillars – 1.Clients
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1. Sustainability & Entry to DJSI
2. Healthy Life
3. Omnichannel Strategy Development
4. Fidelity & Datamining
5. Mobility
Ejes Estratégicos – 2.Tendencias
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Corporate Strategy Plan
1. Review of the route and role of each business unit within the portfolio
2. Ensure capital allocation alignment
3. Same methology for the entire organization
Productivity and Efficiency1. Review of structures and headcount
2. Non-core assets and landbank divestiture
3. Inventory health (Aging)
4. Energy Efficiency
5. Organic growth
6. SG&A growing below income
7. Centralization of productive processes
8. Technology at the service of stores and costumers
Program for Stores with Negative EBITDA
Own Brands
Regional Trade Synergies
Foco Estratégico – 3. Rentabilidad
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AGENDA
Highlights Third Quarter
Cencosud Snapshot
Strategy Cencosud
Financials
Corporate Governance
1
67%
33%
FIXED
Debt Composition
DEBT BY CURRENCY(AFTER CCS)
DEBT BY INSTRUMENT DEBT BY RATE(AFTER CCS)
70%
30%
75%
16%
9%
62%14%
20%
4%
INTERNATIONALBONDS
OTHERS
BANKS
LOCALBONDS
CLP Y UF
OTHER LATAM
USD
CLP & UF
3Q16
3Q15
65%
30%
5%
CLP & UF
OTHER LATAM
USD
FLOATING
64%13%
17%6%
INTERNATIONALBONDS
OTHERS
BANKS
LOCALBONDS
FLOATING
FIXED
24
COMFORTABLE DEBT STRUCTURE
NET FINANCIAL DEBT EVOLUTION1
(USD BN)NET LEVERAGE
(NFD/ADJUSTED EBITDA)
4.63.4 3.7 3.3 3.9
3.2
AMORTIZATION SCHEDULE (USD MN)
6.34.7 4.3
3.2 3.8 4.1
3Q15 3Q162012 2013 2014 2015 3Q15 3Q162012 2013 2014 2015
135 149 228 20751
780
19
1,220
36
702
53 42229
43 16 56
350
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2045
1Figures translated to USD with end of period exchange rate. 3Q15 and 3Q16 translated using exchange rate as of September 2016.
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Index
Highlights Third Quarter
Cencosud Snapshot
Strategy Cencosud
Financials
Corporate Governance
26
Ownership Structure
As of September 30st, 2016 Cencosud S.A. capital
was made up of 2.842.520.872 common shares
held by 1.714 shareholders.
The direct and indirect participation of Mr. Horst
Paulmann Kemna and his immediate family in
Cencosud S.A. is 53.1%
27
AFP22%
Controller53%
ADR1%
Retail24%
Board of Directors• Board elected on April 29th 2016 for the 2016-2019 period
• Seasoned 9 member Board:
• 3 family members: Horst Paulmann, Peter Paulmann y
Heike Paulmann
• 2 Independent members: Mario Valcarce and Richard
Büchi
• Board of Directors Committee:
• Roberto Philipps
• Mario Valcarce (Independent)
• Richard Büchi (Independent)
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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.
29
Contacts
Marisol FernándezIROPhone: +562 2959 0545
Natalia NacifSenior Analyst IRTeléfono: +562 2959 0368
Valentina KleinAnalyst IRPhone: +562 2200 4395
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Próximos Eventos
Santander XXI Latin America ConferenceEnero 18 – 20
Cancun, Mexico
Credit Suisse Latin America Investment ConferenceEnero 31 – Febrero 2
Sao Paulo, Brazil
