earnings presentation

fourthquarter2012

fourthquarter

2012

highlights

2

Operational highlights

Cencosud took over Colombia´s second

largest supermarket chain in December 2012; reported one month

of consolidation

Selling space grew to 3.6 million square meters;

total of 982 stores (Excluding Supermakets in Colombia)

Implementation of SAP in Gbarbosa completed in

November 2012

firstquarter

2013

fourthquarter

2012

3

4Q Financial highlights

• Revenues rose18% to USD 5,4 bn due to the acquisitions of Prezunic, Johnson and supermarkets in Colombia, positive SSS in all divisions in Chile, Brazil, Argentina and Peru, and the opening of 87 new stores vs. 4Q11

• Operating income up 20% YoY, reaching USD 463 MM due to higher operating income from Supermarket (24%), Financial Service (90%) and Department Store (35%) divisions

• Gross Margin rose to 29% from 28.1% in 4Q11 due to improved margins in all divisions most notably DYS, Shopping Centers and Financial Services

• EBITDA rose 16% YoY to USD 515 MM on improved gross margin and the better performance of Ebitda margin in the Supermarket and Financial Service divisions

4

Adjusted EBITDA

• Chile (#2)• Argentina (#1)• Peru (#1)• Brazil (#4)

793(1)

(1) Excludes Supermarkets in

Colombia

Super82Home Improvement

• Chile (#1)*• Peru (2013)

stores

78

*Market share by selling space as of

June 2012.

Department Stores

• Chile (#2)• Argentina (#2)• Peru

Shopping29

• Chile (2.2 MMcards)

• Argentina (1.0 MMcards)

• Peru (0.5 MMcards)

• Brazil (1.0 Mmcards)

FinancialService

stores

Centers

in 3 countries:

1.77 bnportfolio

• Chile (#2)• Argentina (#1)• Colombia

markets

stores

5

A total of 982 stores

breakdown1

1 Revenues and Adjusted EBITDA breakdown exclude “ Other Revenues” and include one month of consolidation of Jumbo Colombia2 Last twelve months ended December 2012; figures converted to USD based on end‐of‐period exchange rates of 479.96 as of Dec 2012

YEAR

• After the acquisition of supermarkets in Colombia, the revenue contribution increased in 710 bps considering only one month in the quarter

• Argentina’s revenue contribution dropped 440 bps

Financial Service3% / 3%

Shopping Center

2% / 2%DS11% / 10%

DYS11% / 13%

Supermarkets73% / 72%

Colombia 4,9% / 0,5%

Peru 8,1% / 9,0%

Brazil20,5% / 19,2%

Argentina25,5% / 29,9%

Chile 40,9% / 41,4%

2012

Revenue

6

YEAR 2012

1 Revenues and Adjusted EBITDA breakdown exclude “ Other Revenues” and include one month of consolidation of Jumbo Colombia2 Last twelve months ended December 2012; figures converted to USD based on end‐of‐period exchange rates of 479.96 as of Dec 20123 EBITDA by country includes Colombia positive EBITDA due to the consolidation of supermarket operations.

Adjusted

Argentina for the first time

represented 21% of adjusted Ebitda

Department Store

9% / 9%

Financial Service9% / 5%

Home Improvement

12% / 15%

Shopping centers

15%/ 16%

Supermarkets56% / 54%

Chile56% / 49%

Colombia 7% / naPeru

8% / 9%

Brazil8% / 12%

Argentina 21% / 30%

breakdown1,2,3EBITDA

7

Revenues evolution (US$bn)

Adjusted EBITDA (US$mm) and margin (%)

GR+44%

+28%

648 825 982 825 982Stores:

GR+20%

38%

9% 8% 7%8% 9%

2010 2011 2012 4Q 2011 4Q 2012

8

Consolidation of Prezunic, 

Johnson and Jumbo 

Colombia

36 Store openings in 4Q12 

Positive SSS in every country 

and division (2012)

Improved EBITDA from Supermarket, 

Dep. Store and Financial Service

9.5% EBITDA margin in Paris (4Q12)

Integration costs of Brazilian and 

Colombian acquisitions

incomecomposition

of net

Source: Cencosud, Public filingsNote: Figures in IFRS; Growth rates calculated  in local currency; figures converted to USD at exchange rates of 501.84 for end of period 2Q12

Net Income increase of 17% to CLP 112,319million in 4Q12:• Stronger operating income driven by supermarket, financial service

and department store divisions

• Non-operating result increased 20% and taxes reduced 27%

• Partially offset by higher financial costs and losses from foreignexchange variations

4Q12

222.318

185.731

(63.380)

(37.940)

(6.560) 197

(9.235) (9.567)

2.153 3.179

(32.977)

(45.703)

Operating Income

Net financialIncome

ExchangeVariations

Results of Indexation Units

Share of Profitor loss of

Equity MethodAssociates

Taxes

4Q11

9

19,1

2011

Revenues (USD bn)

2012

AdjustedEBITDA (USD mm)

1.367

1.206

Net Income (USD mm)

568

549

14,6

2011 20122011 2012

FULL YEAR 2012 highlights

10

Resultsfourthquarter

2012By Business

11

homeimprovement

quarterly

results

Adjusted EBITDA evolution (US$mm)Revenues evolution (US$mm)

+26% GR

+12%

+36% GR

+1%

12

SSS evolution by country in local currency

Geographic presence and market position

24%

5% 6% 5% 6%(4%)

12% 4%

14%

(8%)

28% 32%

27%

38%

20%

2010 2011 2012 4Q11 4Q12

Chile Colombia Argentina

31 stores

47 stores

82stores

4 stores

homeimprovement

resultsquarterly

13

resultsdepartmentstores

quarterly

Adjusted EBITDA evolution (US$mm)Revenues evolution (US$mm)

+39% GR

+38%

+3% GR

+23%

• Record in Paris ebitda margin of 9.5%• First quarter of positive operating income in Johnson• Paris gross margin increased 120 bps due to better mix of sales

14

+38% GR

+42%

+32% GR

+21%

Revenues evolution (US$mm)

Adjusted EBITDA evolution (US$mm)

Shopping

centers

15

Credit card penetration by division (4Q 2012)

resultsfinancial

services

quarterly

9%

19%

21%

51%

10%

19%

45%

9%

Supermarkets

Hypermarkets

Home ImprovementDepartment Stores

Home Improvement

Hyper/supermarkets

Hyper/supermarkets

Hyper/supermarkets

16

Source: CencosudNote: Figures in IFRS; Assumes CLP per USD exchange rates of 507, 468, 520, and 501 for end of period 2009, 2010, 2011, and Jun. 12, respectively 1 Allowance % does take into account anti-cyclical provisions

Loan loss allowance as % of all loans1

Gross loan portfolio evolution by country (US$mm)

1,064

1,104

1.209

Chile Argentina

resultsfinancialservices

quarterly

176888

243861

271938

2010

2011

2012

2010 2011 2012

7%

8%

7%

7%8%

6%

17

Geographic presence

86 stores

214 stores

205 stores

288 stores

793stores

Source: Cencosud, Public filings,  ABRAS, INDECand 473.77  for end of period 2009, 2010, 2011, 9M11 and 9M12, respectively; Market share in terms of net revenues, as of 2011; 

resultsSuper and Hyper

quarterly

markets

6%

5%5% 5%

5%3%7%

1%1%

(0%) (3%)1%

25%23%

19%23%

17% 16%

(2%)

7% 4%

9%

2%3%

2010 2011 2012 4Q11 3Q12 4Q12

Chile Brazil Argentina Peru

SSS evolution by country in local currency

18

resultsSuper and Hyper

quarterly

markets

Adjusted EBITDA evolution (US$mm)

+47% GR

+28%

Revenues evolution (US$bn)

+27% GR

+34%

• Consolidation of Prezunic & Colombia Supermarket

• New store openings (87 vs 4Q11)

• SSS growth in Chile, Argentina, Peru and Brazil

EBITDA grew overpass revenue growth after the better results in supermarket and financial services despite wage increases in Argentina and FX impact

2010

2011

2012

4Q11

4Q12

9,5

10,7

14

USD3,9 bn

657

725

833

USD 209 mm

USD 280 mm

USD3,1 bn

19

fourthquarter

2012

IntegrationUpdate on

Supermarket

20

Commercial Strategy• High quality produce

• Gourmet assortment

• Private Labels

• Logistics

• Loyalty Programs

• Integration with Cencosud

Marketing & Brand• Implement Jumbo brand

• Improve the layout of stores

Human Resources

• Implement Cencosud culture – values and people

management systems

Super and Hypermarkets

Colombia

21

Super and HypermarketsBrazil1. Reduce shrinkage

• Focus on perishable categories• Developed a dedicated task force

2. Improve gross margin

• Since Nov 2012, nationwide negotiations with suppliers• The objective is reduce cost and increase payment terms

3. Human Resources

• Intercompany benchmark of structures• Reduce personnel in stores with less sales

4. Gbarbosa

• Continue improvement in non-food sales

Goals for 2013in Brazil

22

fourthquarter

2012

Financial StructureCencosud

23

fourthquarter

2012

• In December 2012, Cencosud carried out a successful bond issuance of

USD 1,200 million, more than 8 times oversubscribed,

being the largest issuance by a Chilean Company in NYC (excluding Codelco, a

government entity); deal had a lower spread than the USD 750 million

bond issued by Cencosud in January 2011. The coupon rate was 4.875%

versus 5.5% for the 2011 issuance.

• The proceeds of this issuance were used to prepay USD 1,000 million

of the Bridge Loan with JP Morgan and USD 150 million to

prepay the Syndicate Credit “Gbarbosa”

Bond Issuance and prepayment of Bridge loan

24

fourthquarter

2012

Capital Increase

Number of Shares before the Issuance: 2,574,015,016 shares

Capital raise: Ch$835 billion, divided into 332,987,717 shares (10% of

which are for employees compensation plan)

Shareholders in the Registry as of February 6, 2013, will have the

preferential right to subscribe

The commencement of the preferential subscription rights period was February

12; period which will continue for 30 days, ending March 14, 2013.

25

to focus onintegration and develeraging

Capex for Organic Growth 2013

868

377

747

1.187 1.218

731

Country Capex (USD mm) Details

Chile USD 242 million 17 supermarkets, 1 Paris Store, 1 Easy and Costanera 

Brazil USD 116 million 15 supermarkets

Peru be USD 80 million 10 supermarkets, 5 department stores and one 

Argentina USD 23 million 5 supermarkets and 2 Easy stores

Colombia’s  USD 80 million 1 supermarket, 1 Easy store and rebranding

Maintenance  USD 90 million

IT USD 100 million 

Lowering capex

26

Financial Ratios

Net leverage (net debt/EBITDA)

Net debt evolution (US$bn)

Total debt / equityInterest coverage

2,0 3,4 4,26,3

2,7x

2,7x

3,1x

4,6x

5,8x8,4x

5,0x3,4x 57 53

6590

27

earnings presentation

fourthquarter

2012

Q&A