CENCOSUD DAY BUENOS AIRES 2016

CONSOLIDATING OUR STRATEGY

1. CENCOSUD INDICATORS

2. STRATEGIC THRUSTS AND PROGRESS

OF THE LAST 12 MONTHS

3. VISION FOR THE FUTURE

4. OPPORTUNITIES PER COUNTRY

AGENDA

1. CENCOSUD MAIN INDICATORS

STRONG REGIONAL PRESENCE AND HIGH

ACKNOWLEDGMENT BY CLIENTS

137,400 Collaborators

15 Brands

Cencosud jun-2016

1,113 Retail

stores & 53 Malls

220 MM Clients

60 MM Monthly Tickets

16B P&l 3° SUPERMARKETS

2° HOME IMPROVEMENT

1st SUPERMARKETS

4th DEPARTMENT STORES

2° SUPERMARKETS

2° HOME IMPROVEMENT

2° MALLS

2° DEPARTMENT STORES

4° SUPERMARKETS

NORDESTE (#2)

MINAS GERAIS (#1)

RIO DE JANEIRO (#3)

2° SUPERMARKETS

1° HOME IMPROVEMENT

2° MALLS

GROWTH PER DIVISION LAST 5 YEARS jun 2010 – jun 2016 / Thousand M2 GLA

+70%

2016

2.386

2010

1.405

799

2010 2016

672

+19%

2010

234

2016

416

+77%

Home Improvement

Supermarkets

+77%

2016

2.007

2010

1.136

+61%

2016

5.881

2010

3.656

Malls

Department Stores

7,0%

7,5%

9,0%

8,0%

8,5%

6,5%

0,0%

2011

7,1% 6,9%

6,2%

2010

8,5%

2015 2014 2013

7,2%

2012 2016 LTM

7,6%

8,3%

Margin EBITDA Aj Income

279 EBITDA

Aj/m2

(US$)

303 268 260 234 254

9,4 11,4

13,8 15,3

16,2 16,6

INCOME EVOLUTION

(US$ MM) and Mg. EBITDA Aj (%)

20

15

10

5

0

Income Mg. EBITDA Aj

Note: Data in Chilean pesos (CLP) for each year converted to the dollar as of June 2016 ($661.4)

EBITDA 2016 LTM jun would be 7.1% if eliminating the effect of Marina Arauco divestiture

16,2

281

MAIN INDICATORS

2013 2012 2014 2015 2016 LTM Jun

Income (US$Bn)

29,2% 28,9%

2014

27,9%

2015 2016 LTM Jun

2013

28,7% 28,4%

2012

Margin (% Income)

Expense (% Income) EBITDA Aj.(% Income)

2013

23,9% 24,3%

2015

23,5%

2014

24,3%

2016 LTM Jun

23,0%

2012 2014

6,9%

2016 LTM Jun

7,6%

2015

6,2%

2013 2012

7,2% 7,1%

13,8 15,3 16,2 16,8 16,2

Note: Data in Chilean pesos (CLP) of each year converted to the dollar as of June 2016 ($661.4)

2016 LTM Jun

2015 2014 2013 2012

EBITDA (US$MM)

2016 LTM Jun

2015 2014 2013 2012

Debt/ EBITDA Aj

Market Cap (US$Bn)

2016 LTM Jun

2015 2014 2013 2012

979 1.101 1.115 1.035

1.231

10,7 8,4

6,7 7,4 8,2

4,6

3,4 3,7 3,3 3,2

Note: Data in Chilean pesos (CLP) of each year

converted to the dollar as of June 2016 ($661.4)

MAIN INDICATORS

2. STRATEGIC THRUSTS

AND PROGRESS DURING

THE LAST 12 MONTHS

IN 2015 WE DEFINED

OUR ROADMAP

3 STRATEGIC CORES

CLIENTS – TRENDS - PROFITABILITY

CLIENTS

INTERNAL CLIENT

HAPPINESS AT WORK AND

PRODUCTIVITY

CENCOSUD DNA

WE DEFINE 6 KEY COMPETENCES THAT BUILD

A CULTURE

1. CLIENT IS THE FIRST IN MIND

2. INDIVIDUAL TALENT AT THE TEAM’ SERVICE

3. PERMANENT EVOLUTION AND CHALLENGES

4. STRONG CULTURE FOCUSED ON INDIVIDUALS

5. OWNER’S MENTALITY

6. SEEKING ACCOUNTABILITY

INTERNAL CLIENT

HAPPINESS AT WORK

AND PRODUCTIVITY

LEADERSHIP & TRAINING.

5,000+ LEADER’S ESSENCE.

140,000+ E-LEARNING, SCHOOL SHOPS IN

MOST OF FORMATS, FOCUS ON CLIENT

EXPERIENCE

WOMAN & TRENDS.

MQDH CAMPAIGN (1,000 NOMINEES), STUDY

ON MAN-WOMAN SALARY GAPS. HEALTHY

FEEDING. INCLUSION POLICIES.

HAPPINESS & CONFIDENCE.

+19 POINTS IN 4 YEARS, 6 FLAGS IN GPTW

RANKING.

CONSUMER

FROM TRANSACTION TO EMOTION

1. PROMISES GENERATION

2. FOCUS ON EXPERIENCE AS THE CORE

IDEA

3. AUTHORITY IN SIGNIFICANT

CATEGORIES / AVAILABILITY

4. SPEEDY CHECK OUT

5. SPEEDY AND IMPECABLE POST SALES

6. CRM: LOYALTY PROGRAM AND

KNOWLEDGE

TRENDS

SUSTAINABILITY

A NEW MANNER OF BUILDING

ENTREPRENEURSHIP

1. DEFINITION OF A SUSTAINABLE

ENTREPRENEURSHIP POLICY AND

STRATEGY FOR ALL BUSINESSES IN

CHILE, PERU AND COLOMBIA

2. SUSTAINABILITY REPORTS AND CARBON

FOOTPRINT MEASUREMENT

3. DIVERSITY AND INCLUSION NEW POLICY

4. CENCOSUD ENTERS DJSI

5. 3 BRANDS IN PROHUMANA CHILE 2016

RANKING

HEALTHY LIFE

PIONEERS AND LEADERS OF HEALTHY

FOOD IN THE REGION

1. WE INTEND TO TRAIN THE CONSUMER IN

THE CORRECT USE OF FOOD

2. DEVELOPMENT OF FOOD TRENDS AND

SPECIFIC NEEDS

3. EAT HEALTHY AND EAT FREE CAMPAIGNS

BY JUMBO, LIVE HEALTHY AT WONG,

HEALTHY WORLD BY JUMBO COLOMBIA

4. TEAM CHILE SPONSORSHIP

5. ORGANIC AND FUNCTIONAL FOODS

OMNICHANNEL &

ECOMMERCE

MAIN CHANGE TO THE MODEL

1. INVESTMENT PROJECTS / 30% TOTAL IT.

2. ECOMMERCE HIGH GROWTH RATE THROUGHOUT

THE REGION

3. FULL PROCESS TO DEVELOP ASSETS, CLICK &

COLLECT, DRIVE THROUGH…

4. CENCOSUD CAPILLARITY AS DIFFERENTIATION

CORE

5. SELECTION AS A KEY FOR BRANDING AND

PURCHASE AT THE STORE

6. WE INTEND TO BECOME THE MAIN FOOD

OPERATOR IN THE REGION

PURCHASE AT THE

STORE AND WE DELIVER

IT TO YOUR HOME

PURCHASE ONLINE AND

WITHDRAW IT IN YOUR

CAR

PURCHASE BY TELEPHONE

AND WE DELIVER IT TO YOUR

HOME

PURCHASE ONLINE AND

WITHDRAW IT AT YOUR

CLOSEST LOCKER

PURCHASE ONLINE AND

WITHDRAW IT AT YOUR JUMBO

PURCHASE ONLINE AND

WE DELIVER IT TO YOUR

HOME

LOYALTY AND

DATAMINING

MAXIMIZING THE VALUE OF EACH

CLIENT WITHIN THE GROUP

OVER 16 MILLION CLIENTS

REGISTERED IN 5 LOYALTY

PROGRAMS AT EACH COUNTRY

WHERE WE OPERATE

MOBILITY

TO BE AT THE RIGHT SPOT

1. DEVELOPMENT OF NEW

RESPONSIVE SITES

2. MOBILE FIRST DESIGN

3. NEW BUSINESS APPS

4. CENCO WALLET

PROFITABILITY

CORPORATE

STRATEGIC

PLANNING

REVIEWING EACH BUSINESS ROAD AND

EACH BUSINESS ROLE IN OUR PORTFOLIO

ENSURING ALIGNMENT OF CAPITAL

ALLOCATION WITH OUR STRATEGY

THE SAME WORKING METHODOLOGY FOR

THE ENTIRE ORGANIZATION

EFFICIENCY &

PRODUCTIVITY

1. REVIEW OF STRUCTURES AND HEADCOUNT

2. ASSETS AND LANDBANK NONCORE

DIVESTITURE

3. MERCHANDISE HEALTH ( AGING )

4. ENERGY EFFICIENCY

5. NO M&A

6. SG&A GROWING BELOW INCOME

7. PRODUCTIVE PROCESSES CENTRALIZATION

8. TECHNOLOGY AT THE SERVICE OF STORE AND

CLIENTS

STORES WITH

NEGATIVE EBITDA

A MULTIDISCIPLINARY TASK

1. 173 INTERVENED STORES

2. 20 STORES CLOSED

3. 1,000 PLANS CARRIED OUT

4. ADAPTATION OF SELECTION &

LAYOUT

OWN BRANDS

1. 50 BRANDS AT SUPERMARKETS,

DEPARTMENT STORES AND HOME

IMPROVEMENT

2. 5 MARGIN POINTS IN EXCESS OF

THE CORRESPONDING CATEGORY

3. HIGH DEVELOPMENT AND GROWTH

POTENTIAL

DIFFERENTIATION &

PROFITABILITY

REGIONAL COMMERCIAL

SYNERGIES

CENCOSUD JOINT NEGOTIATION/PURCHASE

• TOP 50 SUPPLIERS

• COMMODITIES FOOD

• RETAIL DIVISIONS JOINT

PURCHASE

• LINE REVIEWS

• IMPORTED FOOD

POTENCIAL SYNERGIES

2Q

Acum

2016

29,1%

2Q

Acum

2015

28,6%

+57 bps +288 bps

2Q

Acum

2016

7,9%

2Q

Acum

2015

5,0%

+49%

2Q

Acum

2016

2Q

Acum

2015

262.518

392.224

Mg Bruto

(%Vta)

EBITDA

Aj. (%Vta)

EBITDA

Aj. ($MM)

+55,9%

Last year’s evolution

of Cencosud Share

Price

Ago 15 Sep 16 Dic 15

2.000

1.500

1.000

THE ACTIONS DESCRIBED HAVE HAD A SUCCESSFUL OUTCOME, WHICH IS REFLECTED IN RESULTS AND SHARE PRICE

3- VISION FOR THE FUTURE

COMPANY FIT

1. EXPENSES GROW LESS THAN SALES

2. STOCKS GROW LESS THAN SALES

3. DECREASED AGING

4. FOLLOW UP AND STRICTNESS TO WATCH

WORKING CAPITAL

AUSTERITY AND GREATER

ACCOUNTABILITY CULTURE

STRONG CULTURE

FOCUSED ON

INDIVIDUALS

1. LEADERSHIP AS A PERFORMANCE AND

BUSINESS SUSTAINABILITY DRIVER

2. TALENT REVIEW TOP EXECUTIVES 500

3. MANAGEMENT 6 KEY COMPETENCES

4. RELEVANCE OF WOMEN, HEALTH &

WELLBEING AND LABOR INCLUSION

5. TRAINING AND PRODUCTIVITY

6. LABOR ENVIRONMENT

TRENDS / CONSUMER

(LEADING NEW TRENDS IN THE REGION)

INTERNET AND OMNICHANNELING

SUSTAINABLE COMPANY

HEALTHY FOOD

TAKE AWAY MEALS

WOMEN AND BEAUTY WORLD

EASY AND FAST PAYMENT

FRESH

GROWTH ACCELERATING ORGANIC

MULTIFORMAT GROWTH

BECOMING LEADERS IN EVERY AREA

POSITIVE SSS IN ALL FORMATS

QUALITY AND SERVICE FORMATS AS

CORNERSTONES

LANDBANK DEVELOPMENT

E-COMMERCE HIGH EXPECTATIONS

ACCELERATING REMODELLING PROCESS

SELECTIVE DEVELOPMENT OF NEW STORES

FINANCIAL DISCIPLINE

2012 2015 2014 2016 2013

Fitch Ratings BBB -

Moody’s Baa3

I

Decreasing

Debt/

EBITDA

II

Non-core

assets

divestiture

III

Stable

Outlook

• Divestiture of improductive, non strategic land

• Divestiture of Marina Arauco Mall Viña del Mar

• Divestiture of Pharmacies in Colombia and Perú

• Gas stations in Colombia

4,6 3,4 3,7 3,3 3,2

4- OPPORTUNITIES PER COUNTRY

ARGENTINA WE EXPECT A CHANGE IN THE ECONOMY TREND

FOR 2017:

A GOOD PROJECT PIPELINE, ON ITS OWN LAND

CLOSENESS FORMAT AT JUMBO

THE MARKET IS INCREASING ITS FORMALITY

LEVEL

THE MARKET IS OPENING TO IMPORT

WE ARE LEADERS IN E-COMMERCE

CONSOLIDATED TEAM / STRONG LOCAL PLAYER

BRAZIL END OF RECESSION, GROWTH AS FROM

2018

RENOWNED BRANDS, WITH A HISTORY

AND PRESTIGE IN THEIR MARKETS

WE HAVE A SUCCESSFUL ATACAREJO

FORMAT, WITH A POSITIVE GROWTH

WE HAVE BUILT A LOCAL TEAM OF

EXCELLENT LEVEL, ACKNOWLEDGED BY

THE MARKET

TRANSFORMATION INITIATIVES IN SUPPLY

CHAIN, PRICING, SELECTION AND

EFFICIENCY

COMMERCIAL SYNERGIES, IMPROVING

MARGIN AND COMPETITIVENESS

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 RETAIL

STRONG GROWTH OF THE FINANCIAL

BUSINESS TOGETHER WITH SCOTIABANK

LEADERS IN E-COMMERCE FOOD, STRONG

GROWTH IN NON-FOOD

COSTANERA PROJECT EXPANSION

COLOMBIA WE GROW MORE THAN OUR MAIN COMPETITORS

OMNICHANNEL, E-COMMERCE AND TELEPHONE

SALES DEVELOPMENT

OPTIMISM BY INVESTORS ON THE PEACE

PROCESS

CONSOLIDATED TEAM WITH EXPERIENCE IN THE

LOCAL MARKET

PROFITABILITY OPPORTUNITY FOR OUR

CURRENT ASSETS

OUR BRANDS ARE CONSOLIDATING

GREAT DEVELOPMENT POTENTIAL TOGETHER

WITH LANDBAK AND UNRIVALLED LOCATIONS

2-DIGIT GROWTH AT EASY FOR THE LAST 2

QUARTERS

PERÚ POLITICAL CHANGE, CONFIDENCE IN THE

COUNTRY’S ECONOMY

HIGHER GROWTH AND LOWER INFLATION

EXPECTATIONS

YOUNG COUNTRY: 2/3 OF THE POPULATION

WITH FULL PRODUCTION, SAVINGS AND

INVESTMENT CAPACITY

LOW PENETRATION OF THE MODERN

CHANNEL

POTENTIAL FOR A 3 TIMES GROWTH OF PARIS

SHARE

EXCELLENT LAND PORTFOLIO

WONG WITH AN UNBEATABLE POSITIONING IN

THE HIGH SEGMENT

THE BEST LOYALTY PROGRAM - BONUS

STRONG DEVELOPMENT OF OWN BRAND

CONFIDENCE

41

We are in a better position than 15

months ago

We have started actions that are

yielding profits

We are going to address the future with

an ambitious but responsible growth

And always faithful to the DNA that has

characterized Cencosud: our clients are our

main concern for any decision

FINALLY…

THANK YOU VERY MUCH