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CorporatePresentation4Q18
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INVESTMENT HIGHLIGHTS
OUR STRATEGY
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WHY CENCOSUD?
1 Figures as of December 2018
2 Market Cap calculated as of December 2018 using the stock closing price of CLP 1,256 and constant Exchange rate of CLP 695,69 per US$
3 David Gallagher presented his resignation on June 29, effective immediately due to his appointment as ambassador of the United Kingdom.
4 BCS stands for Bolsa de Comercio de Santiago. Figures as of December 2018 using close stock price CLP 1,564 and a constant Exchange rate of CLP 695,69 per US$.
LEADING SOUTH AMERICAN MULTI-FORMAT RETAILER1
PREMIER BRAND PORTFOLIO WITH INTEGRATED MULTI-FORMAT STRATEGY
UNPARALLELED GROWTH TRACK RECORD HOLDING VALUABLE
LAND BANK
SEASONED MANAGEMENT TEAM3 LISTED ON BCS4
RATED IG BY MOODY’S AND FITCHPRIVILEDGED POSITION TO BENEFIT
FROM IMPROVED ECONOMIC ENVIRONMENT
5 Business Divisions & 5 countries
Leadership positions across the region
Market Cap US$ 5.1 bn2
134.095 employees
1,114 retail stores + 54 shopping centers
3.6 mm sqm of retail space + 338 thousand sqm of shopping centers GLA to third parties
Sound Corporate Governance with SOX standards:
8 Seasoned Board Members
3 Paulmann Family members
2 Independent members
Board of Directors Committee:
Total of 3 members; 2 independent
Listed on BCS (2004)
46.3% Free Float
Daily Avg. Trading Volume: US$ 7.7 mm
Rated IG by Moody’s and Fitch
Member of the EME DJSI
Market leadership positions across the region
Peru:
133,510 sqm of land bank
La Molina Project
Argentina:
3.2 mm sqm land bank
Recognized brand portfolio 6.1 mm sqm of land bank to fuel
future growth across the region
TOTAL SELLING SPACE (‘000 sqm)
1 2 3
4 5 6
1 2 3
4 5 6
4.387 4.417 4.418 4.401
5.992
2014 2015 2016 2017 2018
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CENCOSUD: A PAN-REGIONAL MARKET LEADER
COLOMBIA
3RD SUPERMARKET
2ND HOME IMPROVEMENT
CHILE
2ND SUPERMARKET
2ND HOME IMPROVEMENT
2ND SHOPPING CENTERS
2ND DEPARTMENT STORES
PERU
2ND SUPERMARKET
4TH DEPARMENT STORES
ARGENTINA
2ND SUPERMARKETS
1ST HOME IMPROVEMENT
1ST SHOPPING CENTERS
4TH SUPERMARKET
Leadership position in Northeast,
Minas Gerais, and Río de Janeiro
BRAZIL
Note; Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria).
In May 8, 2018 an agreement was signed with Scotiabank to jointly develop the business in Peru.
JV
JV
JV
60%26%
10% 4%
47%
21%
14%
10%
8%
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REGIONAL MULTI-FORMAT MARKET LEADER, DIVERSIFIED BY BUSINESS UNIT AND GEOGRAPHY
Note: Figures converted to US$ using a constant exchange rate of CLP 641,22 per US$
1 Graph excludes Adj. EBITDA from Brazilian operations which presented a negative contribution of US$ 25 mm
2 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units, minus revaluation of assets. These figures include CLP 13,766 mm of extraordinary gains
from the sale of non-core real estate assets in the LTM period.
3 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 15.043 mn and Adjusted EBITDA was US$ 1,001 mn, using
end of period exchange rate of CLP 695,22 per US$. Argentina represented 20% of total revenues and 27% of total Adjusted EBITDA.
REVENUE BREAKDOWN BY GEOGRAPHY (LTM as of Dec 2018)
US$ 15,213 mm3
ADJ. EBITDA BREAKDOWN BY GEOGRAPHY (LTM as of Dec 2018)
US$ 991 mm1,2,3 (6.5% Adjusted EBITDA margin)
• 249 supermarkets
• 36 home improvement stores
• 81 department stores
• 33 shopping centers
• F.S.: JV with Scotiabank
• 284 supermarkets
• 51 home improvement stores
• 22 shopping centers
• Financial Services
• 201 supermarkets
• 3 different regions
• F.S.: JV with Bradesco
• 93 supermarkets
• 11 department stores
• 4 shopping centers
• Financial Services
• 98 supermarkets
• 10 home improvement stores
• 2 shopping centers
• F.S.: JV with Colpatria
CHILE ARGENTINA BRAZIL PERU COLOMBIA
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STRONG FOOD RETAIL PLAYER; A BUSINESS MORE RESILIENT TO ECONOMIC DOWNTURNS
Note: Figures converted to US$ using a constant exchange rate of CLP 641.22 per US$
1 Graph excludes the “Others” segment, which contributes US$ 10 mm in revenues and –US$ 277 mm in Adj. EBITDA. Adj. EBITDA represents EBITDA plus exchange differences and gains
(losses) from indexation units, minus revaluation of assets.
2 Revenues and Adjusted EBITDA from Shopping Centers don’t include related party transactions
3 Mg = Adjusted EBITDA margin
4 Figures exclude the adjustment of hyperinflation in Argentina (IAS 29). Including the adjustment, revenues for the LTM period were US$ 15,043 mn and Adjusted EBITDA was US$ 1,001 mn,
using end of period exchange rate of CLP 660.42 per US$.
REVENUE BREAKDOWN BY BUSINESS (LTM as of Sept 2018)1,4
US$ 15,213 mm
ADJUSTED EBITDA BY BUSINESS (LTM as of Sept 2018)1
US$ 991 mm (6.5% Adjusted EBITDA margin)2,3,4
Retail accounted for
95% of Revenues
US$10,757mm
US$1,857mm
US$1,817mm Complementary
Business
US$194mm10.4% mg
Retail accounted for 63%
of Adjusted EBITDA
US$53mm2.9% mg
US$ 536mm5.0% mg
US$298mm77,5% mg
US$187mm48,2% mg
Complementary
Business
Supermarkets Home Improvement Department Stores Shopping Centers Financial Services
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US$388mm
US$385mm
42%
22%
16%
5%
15%
71%2%
12%
12%3%
684 921 1.379
2.518 3.116
3.780
6.131 5.512
6.195
7.605
9.149
10.341 10.913 10.957
10.340 10.457 9.755
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PROVEN GROWTH TRACK RECORD
1 Revenues denominated in US$, calculated with an exchange rate of CLP 641.22 per US$
2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange)
• Total selling space grew from 2.8 mm sqm
in 2010 to 3.5 mm sqm in 2018.
• Revenues increased from US$9.7 bn in
2010 to US$15.2 bn in 2018
(CAGR:
5.2%)
(CAGR:
5.8%)
1976 1982 1988 1993 2002
Opening of first supermarkets
IPO BCS1
IPO NYSE
Consolidation in the Chilean market
Internationalization process
Peru
Consolidation and synergies
Delisting NYSE
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Perú
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STRONG LIQUIDITY POSITION AND COMFORTABLE AMORTIZATION SCHEDULE
1 Debt denominated in US$ using end of period exchange rate of 30 September 2018
2 Amortization schedule is presented net off gains/losses from mark to market of derivatives, overdrafts and Comex debt (excluding forwards).
3 Debt by currency after cross-currency swaps.
● Pre-payment of the 2021 and 2023 bonds in 3Q17 & Pre-payment of
local bonds BCencE (UF 2 million), BCencO (CLP 54,000 million) and
Incabond (PEN 280 million) in 2Q18.
● Investment Grade rating since 2011
● Fitch Ratings: BBB- (stable)
● Moody’s: Baa3 (negative)
DEBT BY CURRENCY (AFTER CCS) 3
DEBT AMORTIZATION SCHEDULE (US$ MM)1,2NET FINANCIAL DEBT EVOLUTION
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4Q18 4Q17
4,4
3,53,7
3,33,6
3,83,94,6
3,43,7
3,3 3,2
3,7
4,3
20
12
20
13
20
14
20
15
20
16
20
17
20
18
Net Financial Debt(USD bn)
NFD/Adj. EBITDA(times)
334
581
165
56
744
35
711
51
1.039
219
41 15
199
350
19 20 21 22 23 24 25 26 27 28 29 30 41 45
CLP + UF; 73%
USD; 21%
Otras Latam; 6%
CLP + UF; 71%
USD; 21%
Otras Latam; 8%
EXPERIENCED MANAGEMENT TEAM
CORPORATE GOVERNANCE AND BOARD OF DIRECTORS
• Sound corporate governance SOX Standards:
• 8 seasoned Board members:
• 3 Paulmann Family members
• 2 Independent members
• Board of Directors’ Committee (CMF1):
• Roberto Philipps
• Richard Büchi (Independent)
• Mario Valcarce (Independent)Heike
Paulmann K.
Horst
Paulmann K.
Peter
Paulmann K.
Richard
Büchi
Cristián
Eyzaguirre
Julio Moura Roberto
Philipps
Mario
ValcarceIndependentmembers #
8 Sebastián Conde Matias Videla
Ricardo Bennett
Dag
LoebensteinAntonio Ureta
Patricio RivasTBD
CEO
Years in Cencosud
6 13 17
12 16 2222
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German Cerrato
CEO: Chief Executive Officer. HR: Human Resources. CFO: Chief Financial Officer.. SM:
Supermarkets Manager; DS: Department Stores Manager. FS: Financial Services. SC: Corporate
Shopping Centers Manager. Legal: General Counsel.
2. Mr. Gebhardt and Mr. Conde have been for less than a year in Cencosud. Home Improvement
managemer turned in his resignation effective as of January 31, 2019. His replacement is yet to be
determined.
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MANAGEMENT TEAM2
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INVESTMENT HIGHLIGHTS
OUR STRATEGY
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THE THREE PILLARS OF OUR STRATEGY
Financial Strengthening
• Commitment with IG
• Liability Management
• Non-core assets sale
Strategic Alliances
• JVs with Scotiabank, Colpatria and
Bradesco
• Sustainable relationship with
suppliers
Big Data & Analytics
Private Labels and Regional
Synergies
Sustainability
Talent
Health & Wellness
• Organic
• “Free of”
• Health
STRONG VALUES
Digital Transformation and Omni-
channel
• “Whatever you want, whenever you
want, however you want, wherever
you want”
• IT & Logistics Investments
Strategic Planning
• Area in charge of
coordinating and
materializing planning for
each business division
Procurement
• Close to the business
• Regional team
• Efficiency, process and
people
Process Standardization and
Centralization
• SAP Unification
• Robotic Process Automation
• CSC: Continue Growing
Organic Growth
• Remodeling
• Omni-channel
• New projects
1 GROWTH TRENDSEFFICIENCY AND PRODUCTIVITY2 3
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