first quarter 2020 resultss2.q4cdn.com/740885614/files/doc_financials/2020/q... · as reported...

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First Quarter 2020 Results

Cencosud achieves an 18.7% increase in recurring Adjusted EBITDA compared to the same period of the previous year, reflecting better sales and double-digit increases in EBITDA from most of its operations

As reported (excluding IAS29), revenues increased 8.1% year over year (YoY), explained by double-digit increases in Supermarket revenues, two to four-fold increases in online sales of the respective business units and the positive effect of exchange rates in Peru and Colombia. This was partially offset by the revenue decline at Department Stores and Shopping Centers and the effect of the devaluation of the Argentine peso with respect to the Chilean peso.

E-commerce revenue at the consolidated level during the first quarter increased 52.2%. Chile reported the highest growth at 84.4%, followed by Argentina and Colombia with 56.0% and 53.1% in the local currency, respectively.

Recurring Adjusted EBITDA grew 18.7% as a result of the better YoY performance in the five countries in which the Company operates, reflecting operating efficiencies, adjustments in the revenues mix and better capital management. When taking into account the one-time gain from the proceeds received from the sale of 51% of the Financial Services business in Peru (CLP 92,476 million) in 1Q19, adjusted EBITDA decreased 18.4%.

As reported (excluding IAS29), the non-operating result was affected by the increase in financial expenses that includes the extraordinary payment of USD 68 million for the repurchase of international bonds. It also includes an expense of USD 30 million due to the unwinding of the hedges put in place for these bonds. The exchange rate loss was higher year over explained by the greater exposure and volatility of the US dollar in the period, in addition to a change in accounting policy. The result by adjustment units increases as a result of the rise in inflation with respect to the previous year.

As reported (excluding IAS29), the profit for the period was CLP -33,617 million, a decrease YoY, reflecting the non-recurring effects of the one-time gain from the sale of the financial retail business in Peru the previous year and the higher financial expense associated with the prepayment of the 2021 and 2023 international bonds. In addition, a decline in other income by function (non-cash flow account) is recorded YoY due to the lower revaluation of investment properties. This was partially offset by increased operational efficiency across the five countries.

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Consolidated Statement of Income 1Q20 (CLP million)1

Local

Currency

1Q20 1Q19 Var % 1Q20 1Q19 Var % Var %

Revenues 2,478,190 2,250,301 10.1% 2,457,882 2,274,737 8.1% 11.7%

Gross Profit 689,841 637,382 8.2% 694,548 657,872 5.6% 11.6%

Gross Margin 27.8% 28.3% -49 bps 28.3% 28.9%

SG&A -550,332 -536,340 2.6% -544,494 -538,731 1.1% 6.0%

Operating Result 146,895 261,007 -43.7% 156,496 278,302 -43.8% -39.6%

Non Operating Loss -230,474 -41,341 457.5% -220,673 -40,195 449.0% 456.1%

Taxes 21,294 -66,408 N.A 30,560 -60,746 N.A N.A

Profit -62,285 153,258 N.A -33,617 177,361 N.A N.A

Adjusted EBITDA 231,592 278,537 -16.9% 241,201 295,737 -18.4% -14.3%

Adjusted EBITDA Margin 9.3% 12.4% -303 bps 9.8% 13.0%

Adjusted EBITDA Excl. One Off2 231,592 186,061 24.5% 241,201 203,262 18.7% 24.7%

Adjusted EBITDA Margin Excl. One Off 9.3% 8.3% 108 bps 9.8% 8.9%

As reported Excl. IAS29

-66 bps

-319 bps

88 bps

Relevant Events of the Period2

As a result of the COVID-19 pandemic, during the month of March, Chile and the other countries where Cencosud operates began the implementation of a series of measures, associated with the protection of the population's health and well being, including, among others, total or partial quarantine. As a consequence, the activities of Cencosud’s Shopping Centers and Department Stores were affected, as well as Home Improvement operations in Argentina and Colombia, as shown in the table below:

Figures on May 12, 2020 Closing Date Closed Stores

SM – Chile Social crisis 73

SM – Brazil March 20 84

HI – Argentina March 20 105

HI – Colombia March 20 10

DS – Chile March 20 79

DS – Peru March 16 11

TOTAL 126

Cencosud, since the start of the pandemic, has implemented a series of measures associated with health protocols. For example, in the Supermarkets operation, alcohol hand gel and disinfectant is distributed to all customers at the entrance of the stores, and an internal health check of the store personnel is carried out on a regular basis. In the event any store employee contracts the virus, , the Company closes that store, sends all team members into total quarantine and the store is thoroughly sanitized before re-

1 Detailed Income Statement and hyperinflation effect available in annex to this report 2 EBITDA one-time items excludes the income generated during 1Q19 from the sale of 51% of the Financial Retail business in Peru 3 The stores closed as a result of the damage to the properties due to the social crisis in October 2019 4 From March 20th to March 23rd the stores closed. In addition, 30 Electroshow stores have been closed since March 21 5 They correspond to 8 Blaisten stores and 2 Easy stores

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opening. In addition, since March 18, all central administration employees have been working remotely as a way to contribute to the protection of health.

On March 2, the Company completed the tender offer for all the bonds maturing in the years 2021 and 2023. This operation was carried out under the “Make-Whole Redemption” modality at a redemption price of 103.34% for the 2021 bonds and 109.51% for the 2023 bonds for a total amount of US$ 876 million. Simultaneously, Cencosud canceled the interest accrued on these bonds for a total amount of US$ 5 million. The entire transaction was financed with the Company's own resources.

On April 30, the Ordinary Shareholders Meeting of Cencosud S.A. was held and the new Board of Directors of the Company were elected. In replacement of Messrs. Hans Eben and Roberto Phillips, Mr. Felipe Larrain, former Minister of Finance in the Government of Chile, and Mr. Stefan Krause, former employee of Cencosud, were elected as new directors.

In addition, the shareholders approved a 32 pesos per share final dividend for the period.

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Results by Country6

First Quarter7

CLP MM % CLP MM %

Chile 1,131,558 46.0% 1,078,058 47.4% 5.0% 5.0%

Argentina 472,247 19.2% 425,530 18.7% 11.0% 45.8%

Brazil 352,799 14.4% 332,469 14.6% 6.1% 3.9%

Peru 282,931 11.5% 250,137 11.0% 13.1% -3.9%

Colombia 218,348 8.9% 188,543 8.3% 15.8% 7.4%

TOTAL 2,457,882 100% 2,274,737 100% 8.1% 11.7%

REVENUES1Q20 1Q19 ∆ % Excl.

IAS29

∆ % in local

currency

CLP MM % CLP MM %

Chile 135,542 12.0% 116,797 10.8% 16.0% 16.0%

Argentina 52,247 11.1% 48,927 11.5% 6.8% 41.3%

Brazil 17,648 5.0% 12,219 3.7% 44.4% 42.8%

Peru 24,064 8.5% 110,930 44.3% -78.3% -81.6%

Perú Excl. One Off7 24,064 8.5% 18,455 7.4% 30.4% 10.7%

Colombia 11,700 5.4% 6,864 3.6% 70.4% 58.2%

TOTAL 241,201 9.8% 295,737 13.0% -18.4% -14.3%

TOTAL Excl. One Off7 241,201 9.8% 203,262 8.9% 18.7% 24.7%

ADJUSTED EBITDA∆ % Excl.

IAS29

∆ % in local

currency

1Q20 1Q19

Chile Results

During the quarter, revenues grew 5.0%, reflecting increases in revenues in all business units in the months of January and February. In March, Cencosud reported increases in e-commerce sales in each store Flag, in-store sales in Supermarkets due to consumers uncertainty associated with the potential supply of products, offset by the total closure of Department Stores and Shopping Centers. Adjusted EBITDA increased 16.0% and the margin expanded 114 bps. This increase is explained by the higher Supermarkets sales and efficiency gains across all businesses.

CLP MM CLP MM

Supermarket 743,991 660,850 12.6%

Shopping Centers 34,249 40,471 -15.4%

Home Improvement 149,532 146,047 2.4%

Department Stores 202,365 228,624 -11.5%

Others 1,421 2,067 -31.3%

Chile 1,131,558 1,078,058 5.0%


IAS29

6 For comparative purposes and analysis of business performance, figures exclude the effect of the Argentine hyperinflation rule 7 EBITDA one-time items excludes the income generated during 1Q19 from the sale of 51% of the Financial Retail business in Peru

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Same Store Data8

SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 13.2% 6.0% 1.1% 0.0% -1.5% 1.1%

Home Improvement 3.3% 2.2% 1.9% 3.2% 6.8% 3.6%

Department Stores 5.3% -5.1% -4.4% -5.4% -7.5% -5.6%

SS Ticket 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket -7.4% -6.7% 1.2% 0.9% -0.1% -1.2%

Home Improvement -3.1% -3.6% -2.6% -1.0% 1.2% -1.3%

Department Stores -2.4% -7.0% -0.7% 0.2% 4.3% -0.9%

Average Ticket 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 22.3% 13.6% -0.1% -0.9% -1.4% 2.8%


Department Stores 8.6% 3.0% -4.0% -5.7% -11.6% -4.7%

CLP MM CLP MM

Supermarket 89,985 67,742 32.8%

Shopping Centers 27,329 36,216 -24.5%

Home Improvement 15,970 15,914 0.3%

Department Stores 4,628 11,247 -58.9%

Financial Services 798 4,678 -83.0%

Others -3,168 -19,002 -83.3%

Chile 135,542 116,797 16.0%

ADJUSTED EBITDA∆ % Excl.

IAS29

1Q20 1Q19

1. Supermarkets: revenues grew 12.6% YoY, explained by a same store sales (SSS) increase of 13.2%, partially offset by the closure of seven stores reflecting the social impact that occurred in October 2019. Higher SSS include the increase in the sale of food, particularly perishables, mainly in the last two weeks of March driven by COVID-19 pantry-stocking, offset by a decline in sales of electronics, general merchandise and home décor. The Adjusted EBITDA margin expanded 184 bps, due to the savings associated with efficiency plans, less investment in advertising and lower bonuses to executives (corresponding to fiscal year 2019), offset by higher expenses associated with the increase in e-commerce sales, and higher costs for cleaning, security and insurance.

2. Home Improvement: revenue increased slightly YoY (+ 2.4%) explained by SSS of 3.3%. During the first two months of the year, Home Improvement achieved SSS of 8.5%, mainly due to the increase in sales of seasonal products and the wholesale channel, partially offset by slower sales in March as consumers were more focused on purchasing essentials. Adjusted EBITDA increased 0.3% explained by an improvement in the gross margin due to the change in the product mix, and lower provision of bonuses to

8 The SSS calculation excludes stores that were closed more than 10% of the quarter. Similarly, for the year 2019, closed stores more than 10% of the quarter were excluded due to the social crisis.

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executives, offset by higher insurance expenses and an increase in real terms of employee salaries.

3. Department Stores: revenues decreased 11.5% YoY explained by SSS of 5.3% offset by the total closure of stores during the second half of March due to COVID-19. In the first two months of the year, Department Stores reported a positive SSS, explained by an increase in consumption since the end of 2019. The sales decline for the quarter was partially offset by the increase in e-commerce sales, triple digit increases in technology, home and sports products. Adjusted EBITDA contracted, impacted by the lower dilution of expenses and an increase in logistics expenses, offset by an improved inventory management and savings in marketing, real estate leasing and greater efficiency in processes.

4. Shopping Centers: revenues declined 15.4% due to lower rents collected reflecting the March 19th closing of Shopping Centers in non-essential areas due to COVID-19, in addition to lower charges for Parking and less visitors to Costanera Center’s Observatory deck. All of the above were partially offset by the start of rent collection at the Hotel located in the Costanera Center complex. The adjusted EBITDA margin contracted due to the lower dilution of expenses and higher expenses in security and insurance.

5. Financial Services: the results reflected higher funding costs, risk charges and personnel expenses. This was offset by the loan growth slightly above inflation levels.

Argentina Results

Revenues increased 45.8% in local currency, while in CLP grew 11.0% as a result of the devaluation of the ARS compared to CLP. The increase in local currency is mainly explained by a growth in Supermarket and Home Improvement sales above inflation, partially offset by the effect of the mandatory quarantine on Home Improvement and Shopping Mall sales. Adjusted EBITDA increased 41.3% in local currency and EBITDA margin contracted 43 bps YoY, reflecting a drop in the profitability of Shopping Centers and Home Improvement.

CLP MM CLP MM

Supermarket 308,983 254,091 21.6% 58.9%

Shopping Centers 10,517 11,156 -5.7% 25.3%

Home Improvement 118,596 121,442 -2.3% 30.0%

Financial Services 33,613 38,259 -12.1% 15.8%

Others 537 582 -7.6% 25.1%

Argentina 472,247 425,530 11.0% 45.8%


IAS29

∆ % in local

currency

8

Same Store Data9

SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 59.7% 48.3% 37.5% 35.5% 30.8% 38.8%


SS TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 2.0% -2.9% -4.5% -2.8% -3.1% -3.3%

Home Improvement 2.1% -2.5% -10.9% -11.6% -13.1% -9.6%

AVERAGE TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 56.6% 52.7% 43.9% 39.4% 35.1% 43.5%


1. Supermarkets: revenues increased 58.9% in local currency, explained by SSS of 59.7% reflecting the growth in sales of basic consumer products, driven in part by consumers pantry-loading due to the mandatory quarantine as well as an increase in market share during the period. Of note, the informal market has decreased its participation recently. The Adjusted EBITDA margin contracted 19 bps explained by the pricing in the basic basket, partially offset by the decrease in expenses following the implementation of efficiency plans and marketing savings.

2. Home Improvement: revenues increased 30.0% in ARS, due to the good sales performance in the months of January and February, partially offset by the mandatory closing of the stores as of March 20th. Of note, effective April 3rd Easy Stores have re-opened. Adjusted EBITDA margin contracted 277 bps explained by store closings, partially offset by a reduction in basic services expenses (cleaning, security and energy), marketing and process efficiency.

3. Shopping Centers: revenues grew 25.3% in local currency, mainly due to the good performance in the first two months of the year, offset by the closing of stores during the month of March. The Adjusted EBITDA margin contracted YoY due to the increase in bad debt, partially offset by lower expenses due mainly to process efficiencies achieved.

4. Financial Services: the adjusted EBITDA margin expanded due to a wider spread and an increase in the commission fee. An improvement in the quality of the portfolio allowed for stable risk charges while maintaining a policy of cautious loan growth.

9 The SSS calculation excludes stores that were closed more than 10% of the quarter

9

Brazil Results

Revenues increased 3.9% in local currency and 6.1% in CLP due to the appreciation of the real against CLP. The growth in local currency is mainly due to the double-digit increase in sales of Prezunic and food in GBarbosa. Adjusted EBITDA margin expanded 133 bps reaching 5.0%, due to growth in sales and efficiency in expenses.

CLP MM CLP MM

Supermarket 352,071 331,573 6.2% 4.0%

Financial Services 728 896 -18.7% -20.5%

Brazil 352,799 332,469 6.1% 3.9%


IAS29

∆ % in local

currency

Same Store Data10

SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 4.0% 0.6% -2.0% -0.2% -2.0% -0.8%

SS TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket -6.4% -2.7% -0.6% -0.4% -0.1% -1.0%


Supermarket 11.1% 3.4% -1.4% 0.3% -1.9% 0.2%

1. Supermarkets: revenues grew 4.0% in local currency, explained by the positive performance in Prezunic well above inflation and GBarbosa with growth in food and stable in electronics despite the impact on sales due to the closing of the local Electroshow in the month of March due to COVID-19. Bretas sales were flat with the previous year, influenced by the high comparison base and an increase in local competition. The Company achieved an increase in EBITDA of 66.8% YoY, reflecting the impact of the commercial negotiation strategy and ongoing structural efficiency programs and other store expenses.

2. Financial Services: adjusted EBITDA was positive, although it was down YoY by 18.7% in CLP and 20.5% in local currency, respectively explained by a higher risk YoY as a result of the economic effects in Brazil due to the COVID-19 pandemic.


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Peru Results

Revenues grew 13.1% in CLP YoY and declined 3.9% in local currency explained by the appreciation of the Peruvian Sol with respect to CLP. The decrease in local currency is mainly due to the deconsolidation of the financial retail business, which was sold in 1Q19, and a sales decline at Shopping Centers and Department Stores due to the closure of stores in the last two weeks of March due COVID-19. The Adjusted EBITDA margin, without the extraordinary effect of the sale of Financial Services, expanded 113 bps mainly due to the improvement in the result of Supermarkets given the increase in sales of food staples.

CLP MM CLP MM

Supermarket 257,111 209,091 23.0% 4.5%

Shopping Centers 5,636 5,331 5.7% -10.0%

Department Stores 19,732 21,045 -6.2% -20.1%

Financial Services 0 14,368 -100.0% -100.0%

Others 452 302 49.8% 27.3%

Peru 282,931 250,137 13.1% -3.9%


IAS29

∆ % in local

currency

Same Store Data 11

SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 3.3% -4.4% -4.5% -3.3% 2.1% -2.7%

Department Stores -0.7% -3.3% 2.1% -0.8% 9.8% 1.1%

SS TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket -6.9% -7.8% -2.2% -0.9% 1.1% -2.7%

Department Stores 7.5% 4.4% 10.6% 6.4% 9.7% 7.5%


Supermarket 10.9% 3.6% -2.3% -2.4% 1.0% 0.0%

Department Stores -7.6% -7.5% -7.7% -6.8% 0.1% -5.9%

1. Supermarkets: revenues in local currency grew 4.5% explained by SSS of 3.3% reflecting the increased demand, mainly for food, driven by the uncertainty given the mandatory quarantine due to COVID-19. Adjusted EBITDA margin expanded 194 bps mainly due to lower marketing expenses and process efficiency.

2. Department Stores: revenues decreased 20.1% in local currency, mainly due to the total closure of stores in the last weeks of March as well as weaker consumption at the beginning of 2020. Adjusted EBITDA registered a YoY decline explained by lower sales, partially offset by lower marketing expenses and process efficiency.


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3. Shopping Centers: revenues were 10.0% lower in local currency due to the closure of most stores due to COVID-19. Adjusted EBITDA margin expanded by 305 bps mainly explained by the reduction in expenses driven by operating efficiencies.

4. Financial Services: results during the quarter were impacted by the deconsolidation of the business from March 2019 reflecting the sale of 51% of the business. The latter was partially offset by a reduction in portfolio risk due to a more conservative strategy in attracting new clients.

Colombia Results

During the first quarter, revenues grew 15.8% in CLP and 7.4% in local currency, mainly explained by the appreciation of the COP against the CLP. The growth in local currency is explained by higher sales in Supermarkets due to the increase in demand generated by the uncertainty of COVID-19 and the higher demand during the months of January and February, offset by the closure of the Home Improvement stores in the second half of March. Adjusted EBITDA margin expanded 172 bps, the highest in the last three quarters.

CLP MM CLP MM

Supermarket 195,173 167,891 16.2% 7.8%

Shopping Centers 2,296 2,134 7.6% -0.5%

Home Improvement 18,540 17,449 6.2% -1.9%

Financial Services 2,891 1,826 58.3% 46.3%

Others -552 -758 -27.2% -32.8%

Colombia 218,348 188,543 15.8% 7.4%


IAS29

∆ % in local

currency

Same Store Data12

SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket 9.8% 4.2% 5.3% 0.5% 1.3% 3.3%


SS TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Supermarket -7.2% -2.0% 0.3% 1.9% -3.3% -0.3%

Home Improvement 4.1% -0.6% -0.1% 6.5% 4.1% 2.3%


Supermarket 18.3% 6.3% 5.0% -1.4% 4.8% 3.6%



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1. Supermarkets: revenues increased 7.8% in local currency, driven by SSS of 9.8%, offset by the closing of one store. In turn, SSS growth is explained by a double-digit increase in e-commerce sales and an almost double-digit increase in in-store sales, mainly food, partially offset by the decline in non-food products sales. The adjusted EBITDA margin improved of 136 bps as a result of the reduction in the expenses of basic services, mainly energy, marketing expenses and process efficiencies achieved.

2. Home Improvement: revenues were down 1.9% in local currency, mainly due to the total closure of stores in the last two weeks of March, due to COVID-19, offset by the good performance in the wholesale and e-commerce channels. The Adjusted EBITDA margin contracted by 5 bps explained by the lower dilution of expenses partially offset by the benefits from the efficiency programs, as well as lower energy, marketing and maintenance expenses.

3. Shopping Centers: revenues were down 0.5% in local currency due to the closing of stores due to COVID-19. Additionally, rent was not collected from tenants as the Company forgave tenants’ rent for the period. The adjusted EBITDA margin contracted 157 bps explained by the dilution of expenses with respect to the decline in income.

4. Financial Services: adjusted EBITDA increased 70.8% in local currency, explained by the better performance of the financial retail JV and higher fees charged for the issuance of loyalty points. Results also benefited from a greater recovery of expenses, increased efficiency and a greater recovery of bad debt against 1Q19.

13

Consolidated Balance Sheet 13 14

Balance Sheet by Country

Mar-20 Dec-19 % Mar-20 Dec-19 % Mar-20 Dec-19 %

Chi le 5,880,873 6,420,429 -8.4% 4,664,089 5,279,798 -11.7% 1,546,607 1,455,113 6.3%

Argentina 1,507,727 1,369,643 10.1% 554,901 519,612 6.8% 1,024,566 929,391 10.2%

Brazi l 1,146,339 1,355,173 -15.4% 573,287 695,698 -17.6% 481,453 555,344 -13.3%

Peru 1,660,208 1,604,476 3.5% 510,248 486,663 4.8% 1,001,509 988,622 1.3%

Colombia 1,349,276 1,498,586 -10.0% 232,241 276,615 -16.0% 955,523 1,061,451 -10.0%

As reported 11,544,424 12,248,308 -5.7% 6,534,765 7,258,386 -10.0% 5,009,658 4,989,922 0.4%

(IAS29 effect) 50,076 604,119 -91.7% -12,407 150,153 -108.3% 62,482 453,966 -86.2%

Excl. IAS29 11,494,348 11,644,189 -1.3% 6,547,172 7,108,233 -7.9% 4,947,176 4,535,956 9.1%

TOTAL ASSETS TOTAL LIABILITIES TOTAL NET EQUITY

Mar-20 Dec-19 Mar-20 Dec-19

MM CLP MM CLP MM CLP MM CLP MM CLP MM CLP

Current Assets 2,564,864 3,211,512 -20.1% 1,237 36,277 2,563,626 3,175,235 -19.3%

Assets held for Sale 319 319 0.2% 0 3 319 316 1.1%

Current Assets, Total 2,565,183 3,211,830 -20.1% 1,238 36,280 2,563,945 3,175,550 -19.3%

Non-Current Assets, Total 8,979,241 9,036,478 -0.6% 48,838 567,839 8,930,403 8,468,639 5.5%

TOTAL ASSETS 11,544,424 12,248,308 -5.7% 50,076 604,119 11,494,348 11,644,189 -1.3%

Current Liabilities 2,377,618 2,537,199 -6.3% -113 -1,354 2,377,731 2,538,553 -6.3%

Current Liabilities, Total 2,377,618 2,537,199 -6.3% -113 -1,354 2,377,731 2,538,553 -6.3%

Non-Current Liabilities 4,157,148 4,721,187 -11.9% -12,294 151,507 4,169,441 4,569,680 -8.8%

TOTAL LIABILITIES 6,534,765 7,258,386 -10.0% -12,407 150,153 6,547,172 7,108,233 -7.9%

Net equity attributable to controlling

shareholders 4,456,021 4,442,538 0.3% 62,482 453,966 4,393,539 3,988,572 10.2%

Non-controlling interest 553,637 547,383 1.1% - - 553,637 547,383 1.1%

TOTAL NET EQUITY 5,009,658 4,989,922 0.4% 62,482 453,966 4,947,176 4,535,956 9.1%

TOTAL NET EQUITY & LIABILITIES 11,544,424 12,248,308 -5.7% 50,076 604,119 11,494,348 11,644,189 -1.3%

%

As reportedIAS29

Mar'20

IAS29

Dec'19

Excl IAS29

%

Total assets as of March 31, 2020 decreased CLP 149,841 million (excluding adjustment for hyperinflation) compared to December 2019, mainly due to the decrease in current assets, CLP 611,605 million, and the increase in non-current assets, CLP 461,764 million.

The decrease in current assets is mainly explained by:

The decrease in Cash and cash equivalents, of CLP 733,910 million, reflecting the redemption of the 2021 and 2023 bonds completed on February 29, 2020.

The decrease of CLP 41,452 million in Commercial accounts and other accounts receivable due to the collection of part of the post-social movement debt that occurred in Chile during the fourth quarter.

Partially offset by the CLP 76,830 million increase in Current inventories, explained by the increase in merchandise resulting from Covid-19 and Other current financial assets, of CLP 75,642 million, related to higher derivatives expenses, offset by lower mutual fund shares.

13 The explanations of the balance are net of the accounting effect of hyperinflation in Argentina (see "Comparable" columns) 14 The detail of the Consolidated Balance is found in the annexes of this report

14

The increase in non-current assets is explained by:

The CLP 247,442 million increase in Investment Properties due to the increase in foreign currency exchange and inflation in Argentina, offset by the lower revaluation recognized in results during the period.

The CLP 227,472 million increase in Property, plant and equipment is explained by inflation in Argentina partially offset by the lower right of use as per accounting change adopted last year – IFRS16.

Total liabilities as of March 31, 2020 decreased CLP 561,061 million compared to December 2019.

The decrease in current liabilities is explained by:

The decrease of CLP 90,589 million in Commercial accounts payable and other accounts payable is due mainly to the decrease in withholdings and to a lesser extent accounts payable to commercial creditors.

A decrease of CLP 57,286 million in Other current financial liabilities is due to the lower financial debt with both the bank and the public bonds.

The decrease in Accounts Payable to related entities of CLP 11,671 million is due to the lower debt mainly with CAT, one of Cencosud’s subsidiaries.

The decrease in non-current liabilities is explained by:

The decrease of CLP 466,067 million in Other non-current financial liabilities is due to the payment of the 2021 and 2023 bonds made during February.

The decrease of CLP 77,717 million in Non-current lease liabilities is due to changes in accounting policies by IFRS16.

The above was partially offset by the CLP 141,361 million increase in Deferred tax liabilities due to inflation generated by Argentina.

The increase in equity for CLP 411,220 million is explained by the increase in Other reserves for CLP 340,059 million, due to the better result from exchange differences and cash flow hedges and higher Capital paid by CLP 215,642 million due to Argentine inflation, partially offset by the CLP 145,893 million decrease in accumulated gains (losses) reflecting the lower profit recorded during the period.

15

Indebtedness As of March 31, 2020, the net financial debt was CLP 1,801,628 million, compared to CLP 1,698,195 million as of December 31, 2019. When including lease liabilities, the total net financial debt was CLP 2,762,200 million.

Financial Ratios15 16 17

(in times) Mar 20 Dec 19 Mar 19

Net Financial Debt / Adjusted EBITDA 3.1 3.3 5.6

Financial Expense Ratio 2.4 3.3 3.3

Financial Debt / Equity 0.4 0.3 0.7

Total Liabilities / Equity 1.3 1.5 1.7

Current Assets / Current Liabilities 1.1 1.3 1.0

Net Financial Debt Reconciliation18

(millions of Chilean pesos) Mar-20 Dec-19

Total Financial Liabilities 2,708,457 3,231,810

(-) Total cash and cash equivalents 333,654 1,067,564

(-) Total other financial assets, current and non-current 573,176 466,052

Net Financial Debt 1,801,628 1,698,195

Liabilities per leases 960,572 1,033,130

Net Financial Debt as reported 2,762,200 2,731,324

Interest Rate Risk

As of March 31, 2020, considering hedges through Cross Currency Swaps, 96.07% of the Company's financial debt was at a fixed rate and was mainly composed of short-term debt and bonds. The remaining percentage of the debt was at a variable interest rate. Of the variable rate debt, 96.99% was indexed to local interest rates (either by its original conditions, or by virtue of derivative agreements). The company's hedging policy foresees the periodic review of exposure to exchange rate and interest rate risks.

15 These financial ratios are shown for informational purposes only and do not represent financial covenants associated with debt and bond contracts. The relationships shown above do not include Cencosud's banking assets and liabilities 16 Financial ratios consider hyperinflation in Argentina by accounting standard IAS29 17 Financial expenses coverage without bond prepaid one off is 2.9 times. 18 The consolidated figures include the assets and liabilities classified as held for sale as appropriate. See note 34 of the Financial Statements

16

Currency Hedges

In the countries where Cencosud operates, most costs and revenues are denominated in local currency. Most of the Company's debt is denominated or converted through Cross Currency Swaps to CLP. As of March 31, 2020, 58.01% of total financial debt was in US dollars. Of said debt, originally in dollars, 92.61% was covered by Cross Currency Swaps or other exchange rate hedges. The Company's policy is to hedge the risk caused by variations in the exchange rate on the position of net liabilities payable in foreign currency through market instruments designed for such purposes. Taking into account the effect of exchange rate hedges (Cross Currency Swaps), the Company's exposure to the dollar was 4.29% of total gross debt as of March 31, 2020.

Working Capital Ratios19

Supermarkets 46.0 46.8 -0.9 13.1 14.2 -1.1 46.0 44.0 2.0

Home Improvement 105.5 100.3 5.1 14.5 18.3 -3.7 49.0 48.0 1.0

Department Store 108.5 92.0 16.5 5.8 8.5 -2.7 46.0 49.0 -3.0

Shopping Centers - - - 61.3 51.8 9.5 31.0 31.0 -

Financia l Reta i l - - - - - - 35.0 34.0 1.0

Average period of receivables Average period of payables

1Q20 1Q19 ∆ 1Q20 1Q19 ∆ 1Q20 1Q19 ∆

Inventory turnover

Inventory Days: the Supermarkets business decreased inventory days by 0.9 days (decreased 3.2 days at constant exchange rate) mainly due to the depreciation of the Argentine peso against the CLP. At constant exchange rates, inventory days decreased due to fewer inventory days in Brazil, Colombia, Argentina and to a lesser extent Peru, partially offset by Chile. Home Improvement increased inventory days mainly in Argentina. At constant exchange rate, days decreased by 4.9, mainly for Colombia. Finally, Department Stores increased inventory days by 16.5 days (16.0 days at constant exchange rate), mainly due to lower sales during the quarter.

Average collection period: Supermarkets decreased average receivable days by 1.1 days (decreased 1.2 days at constant exchange rates). The reduction at constant exchange rate is explained by a reduction in days in the five countries. In Home Improvement, the average receivable collection period decreased by 3.7 days and 5.5 days at the constant exchange rate explained by the decrease in Argentina, Chile and Peru. Department Stores recorded a decrease in collection days driven by a reduction in days in Chile and Peru. Shopping Centers increased collection days by 9.5 days (3.5 days without currency effect), due to payment alternatives previously coordinated with tenants due to the social movement in 2019 and the global pandemic in 2020.

19 Income statement figures transferred to CLP at monthly average exchange rate and balance sheet figures at closing exchange rate. Therefore, the fluctuations in the ratios incorporate the effects of fluctuations in the exchange rate vs. CLP. Explanations of working capital ratios do not incorporate Argentina's hyperinflation accounting effect

17

Average Payment Period: in Supermarkets the average days payable increased 2.0 days explained by the increase in Brazil and Colombia, partially offset by Argentina and Peru. In Home Improvement, the average day’s payable increased by 1 day, registering a decrease in Chile offset by increases in Argentina and Colombia. In Department Stores, the average payment period decreased 3.0 days, both in Chile and Peru. In Shopping Centers, the days payable remained the same as the prior period. The Financial Services business increased average days by 1 day, due to the decrease in days in Argentina.

Cash Flow 20

1Q20Net cash flow from

operating activities

Net cash flow used in

investment activities

Net cash flow from (used

in) financing activitiesConsolidated

Supermarkets 44,256 -20,095 -232,047 -207,886

Shopping Centers 29,945 90,336 14,239 134,520

Home Improvement 47,712 -12,263 -41,953 -6,504

Department Stores -32,077 -1,576 31,651 -2,002

Financia l Service 17,761 -24 -24,291 -6,555

Others -51,422 13,519 -670,822 -708,725

Excl. IAS29 56,175 69,897 -923,223 -797,151

IAS29 Adjustment

Inflation Adjustment 1,526 -1,000 -245 282

Convers ion Adjustment 490 -321 -79 91

As Reported 58,191 68,576 -923,547 -796,779

1Q19Net cash flow from

operating activities

Net cash flow used in

investment activities

Net cash flow from (used

in) financing activitiesConsolidated

Supermarkets -51,834 26,377 -61,078 -86,535

Shopping Centers 40,327 10,511 -53,410 -2,572

Home Improvement 46,290 2,485 -48,978 -203

Department Stores -28,347 -3,422 -3,745 -35,514

Financia l Service 34,653 -24 -41,533 -6,903

Others -41,903 97,704 20,390 76,191

Excl. IAS29 -814 133,631 -188,354 -55,537

IAS29 Adjustment

Inflation Adjustment 489 96 -302 282

Convers ion Adjustment -1,468 -287 907 -848

As Reported -1,793 133,439 -187,749 -56,103

Taking into account the cash flow from operating, investing and financing activities, Cencosud showed a net cash flow of CLP -797,151 million as of March 31, 2020 compared to a net cash flow of CLP -55,537 million in the same period of last year.

20 The explanations for cash flow do not consider the accounting effect of hyperinflation in Argentina

18

Operating Activities

Cencosud generated greater cash flow from operating activities reaching CLP 56,175 million in the period as of March 31, 2020 compared to a use of cash of CLP -814 million in the same period in 2019, explained by the higher EBITDA, due to the increase in sales generated during the quarter, offset by higher payments to suppliers for the supply of goods and services and other payments for the business.

Investment Activities

The net cash for investment activities was CLP 69,897 million as of March 31, 2020 compared to CLP 133,631 million for the same period of the previous year. During the 3 months of 2019, Cencosud received proceeds from the sale of 51% of Cencosud Bank in Peru. Capex was CLP 33,801 million in 1Q20 versus CLP 35,572 million in the same period the previous year.

Financial Activities

The net cash used in financing activities was CLP -923,223 million during the first quarter of 2020 compared CLP -188,354 million in the same period of 2019. The increase was a result of the payment of the 2021 and 2023 bonds made during February and the respective accrued interest payments.

Market risks

The risks set out below are some of the potentials that Cencosud faces, a detail of which can be found in the Integrated Annual Report available on the Company's website:

Rapidly spreading infectious diseases are taken by Cencosud as a priority given the severity. The local health authorities may enact hours restriction on stores and malls for a limited period of time, which could have an adverse effect on the Company's income. In the case of our Shopping Centers, approximately 49.4% of the Gross Leasable Area (GLA) is leased to supermarkets, banks, health and home improvement stores, stores that, according to past experience, remain operating at critical times. The Company in this type of events forms a crisis committee with all the front-line management of the different businesses, in order to give a quick response and coordinate the mitigation measures ordered by the authorities and additional measures to protect the health of the employees, customers and suppliers.

We believe that talent retention is key to ensuring the Company's competitiveness in the long term. As mitigations of the risk of talent flight, the following has been established: a process of attracting talent; an annual exercise of succession of critical positions; an annual assessment of compensation and benefits; retention mechanisms associated with performance bonuses; and more robust knowledge management in key

19

areas that allows less dependency on critical positions, among others. Additionally, the Extraordinary Shareholders Meeting in 2019 approved the purchase of shares of its own issuance to establish a long-term retention plan for senior executives and critical positions.

We face intense competition in each of our markets, particularly from the e-commerce channel. Cencosud allocates a portion of its annual investment plan to systems, logistics and needs to develop competitively and at the same time be efficient in our capacities in the field of Omni-channel, which we develop through alliances with third parties, but leaving key knowledge with internal development.

Our income is sensitive to conditions that affect the cost of the products we sell in our stores. In the case of our Supermarket unit, the vast majority of the products sold are produced locally and with a diversified supplier base. In the case of Department Stores and Home Improvement we also have an extensive supplier base that we can change, being able to refocus on other markets or products with higher added value.

Our credit card and bank operations expose us to greater credit and financial risks. As a Company, we decided that the Financial Retail business unit is not strategic and therefore we have established alliances with banks to have more specialized risk management, competitive funding and, if necessary, conservative management of client approval and growth.

Economic and social unrest in the countries in which we operate can negatively affect the economy of the region. Cencosud is a regionally diversified Company and we maintain a local management team for a better understanding of how to face challenges. We have insurance in the event of inventory loss, property damage and loss of earnings coverage as a form of compensation.

21

Macroeconomic indices

Income Statement Detail (CLP Millions)

First Quarter

1Q20 1Q19 ∆ %

Inflation

Effect

Conversion

Effect

Inflation

Effect

Conversion

Effect

1Q20 1Q19 ∆ %

Asset Revaluation -7,087 62,519 -111.3% - 50 - -5 -7,137 62,524 -111.4%

Deferred Income Taxes Asset Revaluation 1,736 -15,871 -110.9% - -12.35 - 1.18 1,749 -15,872 -111.0%

Net Effect from Asset Revaluation -5,350 46,649 -111.5% 0 38 0 -3 -5,388 46,652 -111.6%

As Reported IAS29 (Mar'20) IAS29 (Mar'19) Excl. IAS29

Exchange Rate (end of period) Exchange Rate (Average)

1Q20 1Q19 % change 1Q20 1Q19 % change LTM20 LTM19 % change

CLP/USD 852.03 678.53 25.6% CLP/USD 802.80 667.02 20.4% 737.20 657.49 12.1%

CLP/ARS 13.23 15.66 -15.5% CLP/ARS 13.06 17.17 -23.9% 13.92 20.87 -33.3%

CLP/COP 0.21 0.21 0.0% CLP/COP 0.23 0.21 7.9% 0.22 0.22 0.4%

CLP/PEN 248.07 204.47 21.3% CLP/PEN 236.07 200.74 17.6% 219.56 198.83 10.4%

CLP/BRL 163.85 173.83 -5.7% CLP/BRL 181.20 177.22 2.2% 179.31 174.03 3.0%

Inflation Inflation of Food and Non-Alcoholic Drinks

1Q20 1Q19 1Q20 1Q19

Chile 3.7% 2.5% Chile 6.1% 1.9%

Argentina 48.4% 54.7% Argentina 51.3% 64.0%

Brazil 3.3% 4.6% Brazil 5.1% 8.7%

Peru 1.8% 2.4% Peru 2.0% 1.6%

Colombia 3.9% 3.2% Colombia 7.2% 2.9%

(A) (B) YoY Var (C) (D) (E) (F) (A)-(C)-(D) (B)-(E)-(F) YoY Var

1Q20 1Q19 ∆ % Inflation

Effect

Conversion

Effect

Inflation

Effect

Conversion

Effect

1Q20 1Q19 ∆ %

Net revenues 2,478,190 2,250,301 10.1% 14,168 6,140 12,923 -37,360 2,457,882 2,274,737 8.1%

Cost of sales -1,788,349 -1,612,918 10.9% -21,238 -3,778 -19,058 23,004 -1,763,334 -1,616,865 9.1%

Gross profit 689,841 637,382 8.2% -7,070 2,363 -6,134 -14,356 694,548 657,872 5.6%

Gross margin 27.8% 28.3% -49 bps -49.9% 38.5% -47.5% 38.4% 28.3% 28.9% -66 bps

Selling and administrative expenses -550,332 -536,340 2.6% -4,239 -1,599 -8,045 10,436 -544,494 -538,731 1.1%

Other income by function -4,160 64,974 -106.4% 5 53 4 -17 -4,218 64,987 -106.5%

Other gain (Losses) 11,546 94,990 -87.8% 896 -11 800 16 10,661 94,174 -88.7%

Operating income 146,895 261,007 -43.7% -10,407 806 -13,375 -3,920 156,496 278,302 -43.8%

Participation in profit of equity method

associates1,579 5,000 -68.4% - - - - 1,579 5,000 -68.4%

Net Financial Income -148,239 -66,862 121.7% 2,818 -57 -2,563 648 -151,000 -64,947 132.5%

Income (loss) from foreign exchange variations -60,196 17,871 -436.8% 125 -76 -1,609 -52 -60,245 19,532 -408.4%

Result of indexation units -23,618 2,650 -991.2% -12,678 67 2,523 -93 -11,007 220 -5109.4%

Non-operating income (loss) -230,474 -41,341 457.5% -9,735 -66 -1,649 503 -220,673 -40,195 449.0%

Income before income taxes -83,579 219,666 -138.0% -20,142 740 -15,024 -3,417 -64,177 238,107 -127.0%

Income taxes 21,294 -66,408 -132.1% -9,135 -130 -7,928 2,266 30,560 -60,746 -150.3%

Profit (Loss) -62,285 153,258 -140.6% -29,277 610 -22,952 -1,151 -33,617 177,361 -119.0%

Profit (Loss) from controlling shareholders-71,024 151,436 -146.9% -29,323 610 -22,942 -1,151 -42,311 175,529 -124.1%

Profit (Loss) from non-controlling shareholders -8,740 -1,822 379.7% -46.05 - 9.97 - -8,694 -1,832 374.6%

Adjusted EBITDA 231,592 278,537 -16.9% -10,407 798 -8,711 -8,489 241,201 295,737 -18.4%

Adjusted EBITDA Margin (%) 9.3% 12.4% -303 bps -73.4% 13.0% -67.4% 22.7% 9.8% 13.0% -319 bps

As Reported IAS29 (Mar'20) IAS29 (Mar'19) Excl. IAS29

22

EBITDA Calculation (CLP Millions)

First Quarter

1Q20 1Q19 %

Profit (Loss) -33,617 177,361 -119.0%

Net Financia l Costs 151,000 64,947 132.5%

Result from Indexation Units 11,007 -220 -5109.4%

Result from Exchange Variations 60,245 -19,532 -408.4%

Income taxes -30,560 60,746 -150.3%

Depreciation & Amortization 75,989 74,959 1.4%

Revaluation of Investment Properties 7,137 -62,524 -111.4%

Adjusted EBITDA 241,201 295,737 -18.4%

First Quarter EBITDA calculation by business

1Q20 SM SC HI DS FS Others Consol

Net Income 113,498 32,032 26,547 -10,733 24,117 -219,078 -33,617

Financia l Expense (net) - - - - - 151,000 151,000

Income Tax Charge - - - - - -30,560 -30,560

EBIT 113,498 32,032 26,547 -10,733 24,117 -98,638 86,823

Depreciation and Amortization 48,540 2,457 5,630 14,379 28 4,954 75,989

EBITDA 162,038 34,489 32,178 3,646 24,145 -93,683 162,812

Exchange di fferences - - - - - 60,245 60,245

Revaluation of Investment Properties - 4,295 - - - 2,842 7,137

(Losses) ga ins from indexation - - - - - 11,007 11,007

Adjusted EBITDA 162,038 38,784 32,178 3,646 24,145 -19,589 241,201

1Q19 SM SC HI DS FS Others Consol

Net Income 68,515 108,720 30,879 -3,475 27,204 -54,483 177,361

Financia l Expense (net) - - - - - 64,947 64,947

Income Tax Charge - - - - - 60,746 60,746

EBIT 68,515 108,720 30,879 -3,475 27,204 71,210 303,053

Depreciation and Amortization 48,677 2,921 4,981 13,879 103 4,400 74,959

EBITDA 117,192 111,641 35,859 10,404 27,307 75,610 378,013

Exchange di fferences - - - - - -19,532 -19,532

Revaluation of Investment Properties - -61,947 - - - -577 -62,524

(Losses) ga ins from indexation - - - - - -220 -220

Adjusted EBITDA 117,192 49,694 35,859 10,404 27,307 55,281 295,737

23

Balance Sheet Detail (CLP Millions)

Assets

Liabilities y Equity



Cash and cash equivalents 333,654 1,067,564 - - 333,654 1,067,564

Other financial assets, current 308,933 233,291 - - 308,933 233,291

Other non-financial assets, current 30,365 10,263 19 165 30,345 10,098

Trade receivables and other receivables 606,664 648,117 - - 606,664 648,117

Receivables from related entities, current 11,357 18,124 - - 11,357 18,124

Inventory 1,147,244 1,105,309 1,218 36,112 1,146,026 1,069,197

Current tax assets 126,646 128,844 - - 126,646 128,844

Total current assets other from non-current assets classified as

held for sale2,564,864 3,211,512 1,237 36,277 2,563,626 3,175,235

Non-current assets classified as held for sale 319 319 0 3 319 316

TOTAL CURRENT ASSETS 2,565,183 3,211,830 1,238 36,280 2,563,945 3,175,550

Other financial assets, non-current 264,243 232,760 - - 264,243 232,760

Other non-financial assets, non-current 21,579 21,501 99 140 21,480 21,361

Trade receivable and other receivables, non current 1,872 2,236 - - 1,872 2,236

Equity method investment 311,256 306,238 - - 311,256 306,238

Intangible assets other than goodwill 377,935 374,294 391 4,524 377,544 369,770

Goodwill 1,134,851 1,177,674 628 7,255 1,134,224 1,170,419

Property, plant and equipment 3,355,660 3,448,047 29,798 349,657 3,325,863 3,098,390

Investment property 2,993,993 2,934,388 18,426 206,263 2,975,567 2,728,125

Current Tax assets, non-current 73,647 72,379 - - 73,647 72,379

Deferred income tax assets 444,205 466,960 -504 - 444,709 466,960

TOTAL NON-CURRENT ASSETS 8,979,241 9,036,478 48,838 567,839 8,930,403 8,468,639

TOTAL ASSETS 11,544,424 12,248,308 50,076 604,119 11,494,348 11,644,189

As reported Excl. IAS29IAS 29

Mar'20

IAS 29

Dec'19 ASSETS



Other financial liabilities, current 74,574 131,861 - - 74,574 131,861

Leasing Libilities, current 150,066 144,907 - - 150,066 144,907

Trade payables and other payables 1,919,161 2,008,509 -113 -1,354 1,919,274 2,009,863

Payables to related entities, current 15,059 26,731 - - 15,059 26,731

Provisions and other liabilities 23,262 19,987 - - 23,262 19,987

Current income tax liabilities 46,662 44,754 - - 46,662 44,754

Current provision for employee benefits 84,575 95,271 - - 84,575 95,271

Other non-financial liabilities, current 64,258 65,181 - - 64,258 65,181

Total liabilities other than liabilities included in group of assets

classified as held for sale2,377,618 2,537,199 -113 -1,354 2,377,731 2,538,553

Liabilities included in groups of assets classified as held for sale - - - - - -

TOTAL CURRENT LIABILITIES 2,377,618 2,537,199 -113 -1,354 2,377,731 2,538,553

Other financial liabilities, non-current 2,633,883 3,099,950 - - 2,633,883 3,099,950

Leasing Libilities, non-current 810,506 888,222 - - 810,506 888,222

Trade accounts payable, non-current 3,484 4,257 - - 3,484 4,257

Other provisions, non-current 32,933 34,903 - - 32,933 34,903

Deferred income tax liabilities 604,101 626,542 -12,294 151,507 616,395 475,035

Current taxes liabilities, non-current 11,307 2,719 - - 11,307 2,719

Other non-financial liabilities, non-current 60,933 64,594 - - 60,933 64,594

TOTAL NON-CURRENT LIABILITIES 4,157,148 4,721,187 -12,294 151,507 4,169,441 4,569,680

TOTAL LIABILITIES 6,534,765 7,258,386 -12,407 150,153 6,547,172 7,108,233

LIABILITIES AND EQUITY

As reported Excl. IAS29IAS 29

Mar'20

IAS 29

Dec'19

24

Business Performance

Supermarkets

1Q20 1Q19

Chi le 743,991 660,850 12.6% 12.6%

Argentina 308,983 254,091 21.6% 58.9%

Brazi l 352,071 331,573 6.2% 4.0%

Peru 257,111 209,091 23.0% 4.5%

Colombia 195,173 167,891 16.2% 7.8%

Revenues 1,857,329 1,623,496 14.4% 16.5%

Chi le 189,458 166,867 13.5% 13.5%

Argentina 95,348 85,498 11.5% 45.4%

Brazi l 80,630 74,590 8.1% 6.1%

Peru 60,127 47,241 27.3% 8.1%

Colombia 39,560 34,759 13.8% 5.6%

Gross Profit 465,123 408,955 13.7% 17.5%

SG&A -353,880 -342,479 3.3% 7.4%

Operating Income 113,498 68,515 65.7% 68.0%

Adjusted EBITDA 162,038 117,192 38.3% 38.8%

Adjusted EBITDA Margin 8.7% 7.2%

CLP MM∆ % ML ∆ %

151 bps

1Q20 1Q19 1Q20 1Q19 1Q20 1Q19Chile 247 249 62.3% 61.0% 600,683 600,739 Argentina 283 284 55.6% 56.3% 448,132 465,988 Brazil 202 203 92.1% 92.1% 533,095 569,590 Peru 93 94 48.4% 48.9% 276,839 278,140 Colombia 95 96 36.8% 32.3% 382,395 402,642 Supermarket 920 926 62.0% 61.3% 2,241,144 2,317,098

N° of Stores % Leased Selling Space (sq2)

Paid-in Capital 2,422,050 2,422,050 -17,228 198,414 2,439,278 2,223,636

Retained earnings (accumulated losses) 2,542,459 2,613,483 74,868 - 2,467,590 2,613,483

Issuance premium 460,482 460,482 - - 460,482 460,482

Treasury stock -9,806 -9,806 4,842 - -14,648 -9,806

Other reserves -959,164 -1,043,671 - 255,552 -959,164 -1,299,223

Net equity attributable to controlling shareholders 4,456,021 4,442,538 62,482 453,966 4,393,539 3,988,572

Non-controlling interest 553,637 547,383 - - 553,637 547,383

TOTAL NET EQUITY 5,009,658 4,989,922 62,482 453,966 4,947,176 4,535,956

TOTAL NET EQUITY AND LIABILITIES 11,544,424 12,248,308 50,076 604,119 11,494,348 11,644,189

25

NOMINAL SSS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Chi le 13.2% 6.0% 1.1% 0.0% -1.5% 1.1%

Argentina 59.7% 48.3% 37.5% 35.5% 30.8% 38.8%

Brazi l 4.0% 0.6% -2.0% -0.2% -2.0% -0.8%

Peru 3.3% -4.4% -4.5% -3.3% 2.1% -2.7%

Colombia 9.8% 4.2% 5.3% 0.5% 1.3% 3.3%

SS TICKETS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Chi le -7.4% -6.7% 1.2% 0.9% -0.1% -1.2%

Argentina 2.0% -2.9% -4.5% -2.8% -3.1% -3.3%

Brazi l -6.4% -2.7% -0.6% -0.4% -0.1% -1.0%

Peru -6.9% -7.8% -2.2% -0.9% 1.1% -2.7%

Colombia -7.2% -2.0% 0.3% 1.9% -3.3% -0.3%

AVERAGE TICKET 1Q20 4Q19 3Q19 2Q19 1Q19 12M19Chi le 22.3% 13.6% -0.1% -0.9% -1.4% 2.8%

Argentina 56.6% 52.7% 43.9% 39.4% 35.1% 43.5%

Brazi l 11.1% 3.4% -1.4% 0.3% -1.9% 0.2%

Peru 10.9% 3.6% -2.3% -2.4% 1.0% 0.0%

Colombia 18.3% 6.3% 5.0% -1.4% 4.8% 3.6%

SAME STORE SALES

Home Improvement

1Q20 1Q19

Chi le 149,532 146,047 2.4% 2.4%

Argentina 118,596 121,442 -2.3% 30.0%

Colombia 18,540 17,449 6.2% -1.9%

Revenues 286,668 284,938 0.6% 13.9%

Chi le 40,518 39,324 3.0% 3.0%

Argentina 49,938 49,856 0.2% 33.3%

Colombia 3,948 3,859 2.3% -5.6%

Gross Profit 94,404 93,038 1.5% 18.9%

SG&A -68,003 -62,226 9.3% 26.3%

Operating Income 26,547 30,879 -14.0% 4.2%

Adjusted EBITDA 32,178 35,859 -10.3% 5.8%


ML ∆ %

-136 bps

CLP MM∆ %

1Q20 1Q19 1Q20 1Q19 1Q20 1Q19Chile 36 36 13.9% 13.9% 328,701 328,701 Argentina 51 51 21.6% 21.6% 397,975 397,975 Colombia 10 10 30.0% 30.0% 82,320 82,320 Home Improvement 97 97 19.3% 19.3% 808,996 808,996

N° stores % Leased Selling Space (sq2 )

26


Chi le 3.3% 2.2% 1.9% 3.2% 6.8% 3.6%

Argentina 55.6% 56.9% 37.6% 31.2% 24.8% 38.8%

Colombia 9.8% 3.6% 4.9% 9.2% 13.0% 7.5%

SS TICKETS 1Q20 4Q19 3Q19 2Q18 1Q18 12M19Chi le -3.1% -3.6% -2.6% -1.0% 1.2% -1.3%

Argentina 2.1% -2.5% -10.9% -11.6% -13.1% -9.6%

Colombia 4.1% -0.6% -0.1% 6.5% 4.1% 2.3%


Chi le 6.6% 6.0% 4.6% 4.3% 5.6% 5.0%

Argentina 52.4% 60.9% 54.4% 48.4% 43.6% 53.5%

Colombia 5.5% 4.3% 5.1% 2.6% 8.6% 5.0%

SAME STORE SALES

Department Stores

1Q20 1Q19

Chi le 202,365 228,624 -11.5% -11.5%

Peru 19,732 21,045 -6.2% -20.1%

Revenues 222,097 249,668 -11.0% -12.2%Chi le 53,643 62,186 -13.7% -13.7%

Peru 4,497 4,309 4.4% -11.0%

Gross Profit 58,141 66,495 -12.6% -13.6%

SG&A -69,280 -70,321 -1.5% -3.1%

Operating Income -10,733 -3,475 208.9% 194.6%

Adjusted EBITDA 3,646 10,404 -65.0% -63.5%

Adjusted EBITDA Margin 1.6% 4.2% -253 bps

∆ %CLP MM

ML ∆ %

1Q20 1Q19 1Q20 1Q19 1Q20 1Q19

Chile 79 80 67.7% 68.2% 378,992 385,900

Peru 11 11 91.3% 91.3% 61,427 61,427

Department Store 90 91 70.9% 71.3% 440,419 447,326

N° stores % Leased Selling Space (sq2 )

27


Chi le 5.3% -5.1% -4.4% -5.4% -7.5% -5.6%

Peru -0.7% -3.3% 2.1% -0.8% 9.8% 1.1%

SS TICKETS 1Q20 4Q19 3Q19 2Q19 1Q19 12M19

Chi le -2.4% -7.0% -0.7% 0.2% 4.3% -0.9%

Peru 7.5% 4.4% 10.6% 6.4% 9.7% 7.5%


Chi le 8.6% 3.0% -4.0% -5.7% -11.6% -4.7%

Peru -7.6% -7.5% -7.7% -6.8% 0.1% -5.9%

SAME STORE SALES

Shopping Centers21

1Q20 1Q19

Chi le 34,249 40,471 -15.4% -15.4%

Argentina 10,517 11,156 -5.7% 25.3%

Peru 5,636 5,331 5.7% -10.0%

Colombia 2,296 2,134 7.6% -0.5%

Revenues 52,698 59,092 -10.8% -6.7%

Chi le 33,469 41,438 -19.2% -19.2%

Argentina 7,591 8,124 -6.6% 24.8%

Peru 5,505 4,838 13.8% -3.1%

Colombia 2,269 2,075 9.3% 1.1%

Gross Profit 48,834 56,474 -13.5% -10.8%

SG&A -12,508 -9,701 28.9% 32.3%

Operating Income 32,032 108,720 -70.5% -71.3%

Adjusted EBITDA 38,784 49,694 -22.0% -19.8%


∆ % ML

-1050 bps

∆ %CLP MM

21 The operational figures of Shopping Malls in Chile are in detail in the reasoned analysis of Cencosud Shopping S.A.

28

1Q20 1Q19 1Q20 1Q19 1Q20 1Q19

Cencosud Shopping 33 33 350,788 344,437 99.0% 99.4%

Towers22 n.a. n.a. 65,000 15,000 50.5% 97.8%

No IPO Locations 2 2 5,620 5,620 95.6% 96.2%

Chile 35 35 421,407 365,057 91.5% 99.3%


No IPO Locations 3 3 54,116 54,116 99.5% 99.9%

Perú 6 6 74,395 74,395 98.6% 98.3%


No IPO Locations n.a. n.a. 46,176 46,176 n.a. n.a.

Colombia 4 4 57,543 57,543 94.7% 97.3%

Argentina 22 22 277,203 277,203 95.8% 97.8%

Shopping Centers 67 67 830,548 774,197 93.8% 98.5%

N° of Shopping Centers GLA Third Parties Occupancy Rate

Chile22

1Q20 1Q19 Var% 1Q20 1Q19 Var% 1Q20 1Q19 Var% 1Q20 1Q19 Var%

Portal Talcahuano 1,921 1,921 0.0% 7,675 7,675 0.0% 9,596 9,596 0.0% n.a n.a n.a

Portal Valdivia 3,698 3,698 0.0% 7,806 7,806 0.0% 11,504 11,504 0.0% n.a n.a n.a

Trascaja n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a

IPO Locations 415,788 359,437 15.7% 803,222 802,253 0.1% 1,219,010 1,161,690 4.9% 29,387 33,779 -13.0%

TOTAL CHILE 421,407 365,057 15.4% 818,703 817,734 0.1% 1,240,110 1,182,791 4.8% 29,387 33,779 -13.0%


Portal Talcahuano 663 681 -2.6% 3,515 3,313 6.1% 4,178 3,994 4.6% 158 160 -1.5%

Portal Valdivia 1,593 1,392 14.4% 6,399 5,336 19.9% 7,992 6,728 18.8% 255 249 2.4%

Trascaja n.a n.a n.a n.a n.a n.a n.a n.a n.a 1,548 2,159 -28.3%

IPO Locations 216,568 257,285 -15.8% 456,641 425,252 7.4% 673,209 682,537 -1.4% 32,288 37,902 -14.8%

TOTAL CHILE 218,823 259,358 -15.6% 466,555 433,901 7.5% 685,378 693,259 -1.1% 34,249 40,471 -15.4%

Sales (CLP 'MM)

GLA Third Parties GLA Related Parties GLA TOTALLocations

Locations

Visits (Thousand)

3rd Revenues (CLP 'MM)3rd Parties Sales (CLP 'MM) Related Parties Sales (CLP 'MM)

Argentina


Unicenter 74,782 74,782 0.0% 23,741 23,741 0.0% 98,524 98,524 0.0% 3,537 4,191 -15.6%

Portal Plaza Oeste 19,906 19,906 0.0% 22,612 22,612 0.0% 42,518 42,518 0.0% 965 1,187 -18.7%

Portal Palmas del Pliar 37,416 37,416 0.0% 37,005 37,005 0.0% 74,421 74,421 0.0% 1,666 2,064 -19.3%

Portal Rosario 40,182 40,182 0.0% 29,298 29,298 0.0% 69,480 69,480 0.0% 886 1,078 -17.8%

Portal Patagonia 9,789 9,789 0.0% 28,134 28,134 0.0% 37,922 37,922 0.0% 893 1,022 -12.6%

Portal Lomas 8,201 8,201 0.0% 27,353 27,353 0.0% 35,554 35,554 0.0% 1,005 1,191 -15.6%

Portal Tucuman 10,371 10,371 0.0% 21,439 21,439 0.0% 31,810 31,810 0.0% 819 882 -7.1%

Portal Escobar 4,410 4,410 0.0% 29,607 29,607 0.0% 34,016 34,016 0.0% n.a n.a n.a

Portal los Andes 3,390 3,390 0.0% 29,456 29,456 0.0% 32,846 32,846 0.0% n.a n.a n.a

Portal Trelew 7,213 7,213 0.0% 15,682 15,682 0.0% 22,895 22,895 0.0% n.a n.a n.a

Portal Salta 5,635 5,635 0.0% 18,464 18,464 0.0% 24,099 24,099 0.0% n.a n.a n.a

Portal Santiago Del Estero 5,461 5,461 0.0% 11,737 11,737 0.0% 17,198 17,198 0.0% n.a n.a n.a

Factory/Local/Power

Center/Others50,447 50,447 0.0% 176,164 176,164 0.0% 226,611 226,611 0.0% 1,371 1,604 -14.5%

TOTAL ARGENTINA 277,203 277,203 0.0% 470,691 470,691 0.0% 747,894 747,894 0.0% 11,141 13,218 -15.7%

LocationsGLA Third Parties GLA Related Parties GLA TOTAL Visits (Thousand)

22 The Towers belong to Cencosud Shopping S.A. and they are included within the 33 locations such as the Costanera Center complex

29


Unicenter 3,498 2,676 30.7% 667 425 57.1% 4,165 3,101 34.3% 364 263 38.4%

Portal Plaza Oeste 645 549 17.6% 299 196 52.5% 944 745 26.7% 78 67 17.2%

Portal Palmas del Pliar 770 641 20.1% 899 593 51.7% 1,669 1,234 35.3% 64 58 11.0%

Portal Rosario 534 470 13.5% 408 291 40.0% 942 762 23.6% 34 32 7.0%

Portal Patagonia 531 408 30.2% 803 573 40.0% 1,333 981 35.9% 37 31 18.4%

Portal Lomas 258 270 -4.4% 510 343 48.7% 767 612 25.3% 20 23 -12.8%

Portal Tucuman 372 329 13.1% 461 328 40.4% 833 658 26.7% 32 27 18.4%

Portal Escobar 125 136 -8.1% 547 360 51.8% 672 496 35.4% 8 8 3.3%

Portal los Andes 181 160 13.1% 609 438 39.0% 790 598 32.1% 10 10 4.2%

Portal Trelew 192 167 15.5% 251 186 34.6% 443 353 25.6% 11 10 19.7%

Portal Salta 153 124 22.9% 455 319 42.5% 607 443 37.0% 13 9 42.3%

Portal Santiago Del Estero 89 75 19.0% 296 209 41.5% 385 284 35.6% 7 8 -14.6%

Factory/Local/Power

Center/Others1,521 1,384 9.9% 3,669 2,292 60.1% 5,190 3,676 41.2% 129 105 22.9%

TOTAL ARGENTINA 8,867 7,388 20.0% 9,873 6,554 50.6% 18,740 13,942 34.4% 808 650 24.3%

3rd Parties Sales (ARS 'MM) Related Parties Sales (ARS 'MM) Sales (ARS 'MM) 3rd Revenues (ARS 'MM)Locations

Perú

1Q20 1Q19 Var% 1Q20 1Q19 Var% 1Q20 1Q19 Var%

Plaza Lima Sur 43,634 43,634 0.0% 32,263 32,263 0.0% 75,897 75,897 0.0%

Balta 1,031 1,031 0.0% 6,050 6,050 0.0% 7,081 7,081 0.0%

Plaza Camacho 9,451 9,451 0.0% 436 436 0.0% 9,887 9,887 0.0%

Trascaja n.a n.a n.a n.a n.a n.a n.a n.a n.a

IPO Locations 20,279 20,279 0.0% 29,794 29,794 0.0% 50,073 50,073 0.0%

TOTAL PERÚ 74,395 74,395 0.0% 68,543 68,543 0.0% 142,938 142,938 0.0%


Plaza Lima Sur 3,205 3,536 -9.3% 88.7 101.2 -12.4% 7.0 7.8 -10.1%

Balta n.a n.a n.a 25.8 24.5 5.3% 0.7 0.7 -4.8%

Plaza Camacho n.a n.a n.a 4.4 5.1 -13.7% 0.9 1.2 -26.9%

Trascaja n.a n.a n.a n.a n.a n.a 12.0 12.9 -7.0%

IPO Locations 1,102 1,122 -1.8% 94.5 99.4 -5.0% 3.3 4.0 -16.0%

TOTAL PERU 4,307 4,658 -7.5% 213.4 230.3 -7.3% 23.9 26.5 -10.0%


Locations3rd Revenues (PEN 'MM)Visits (Thousand) Sales (PEN 'MM)

Colombia


Others 46,176 46,176 0.0% 855 855 0.0% 47,030 47,030 0.0%

IPO Locations 11,367 11,367 0.0% 855 855 0.0% 47,030 47,030 0.0%

TOTAL COLOMBIA 57,543 57,543 0.0% 1,709 1,709 0.0% 94,061 94,061 0.0%


Others n.a n.a n.a n.a n.a n.a 8,759 8,610 1.7%

IPO Locations n.a n.a n.a 82,732 75,718 9.3% 1,356 1,552 -12.6%

TOTAL COLOMBIA n.a n.a n.a 82,732 75,718 9.3% 10,116 10,162 -0.5%

Locations


Visitas (Miles) Sales (COP 'MM) 3rd Revenues (COP 'MM)

30

Financial Services

1Q20 1Q19

Argentina 33,613 38,259 -12.1% 15.8%

Brazi l 728 896 -18.7% -20.5%

Peru 0 14,368 -100.0% -100.0%

Colombia 2,891 1,826 58.3% 46.3%

Revenues 37,232 55,350 -32.7% -13.9%

Chi le 0 0 n.a n.a

Argentina 23,073 22,065 4.6% 38.1%

Brazi l 728 896 -18.7% -20.5%

Peru 0 6,371 -100.0% -100.0%

Colombia 2,891 1,826 58.3% 46.3%

Gross Profit 26,692 31,159 -14.3% 8.7%

SG&A -4,154 -8,954 -53.6% -41.2%

Operating Income 22,538 22,204 1.5% 28.7%

Net income related companies 1,579 5,000 -68.4%

Dep & Amortizations 28 103 -73.2%

Adjusted EBITDA 24,145 27,307 -11.6% 10.1%

Adjusted EBITDA Margin 64.8% 49.3% 1551 bps

∆ % ∆ % MLCLP MM

Financial Indicators 23

CHILE 1Q20 4Q19 3Q19 2Q19 1Q19

Net Loan Portfolio (MM CLP) 1,253,433 1,270,535 1,211,923 1,205,016 1,182,770

Provisions over expired portfolio 2.6 2.5 2.0 2.4 2.5

Debt balance >90 (%) 3.4% 3.0% 3.5% 2.8% 2.5%

Gross Write-offs (CLP MM)23 35,984 115,189 81,162 49,482 24,159

Recoveries (CLP MM)23 3,944 20,054 16,030 10,389 5,000

Net Write-offs (MM CLP)23 32,041 95,135 65,132 39,092 19,159

Anualized Net Write-offs / Average balance period (%) 10.1% 7.9% 7.3% 6.6% 6.5%

Renegotiated portfolio (%) 13.0% 11.9% 9.8% 9.3% 8.3%

% of Sales w/Credit Cards over Total Sales

Supermarkets 8.1% 8.9% 9.3% 9.1% 8.8%

Department Stores 29.4% 33.5% 31.6% 31.7% 27.7%

Home Improvement 13.1% 15.6% 14.8% 15.3% 15.2%

23 They are presented accumulated at the end of the quarter, in the case of Colombia a correction was made in the 3Q of the year 2019

31

2425 ARGENTINA 1Q20 4Q19 3Q19 2Q19 1Q19

Net Loan Portfolio (MM ARS) 12,555,572 13,083,186 11,927,881 10,418,238 9,844,372


Debt balance >90 (%) 5.9% 5.3% 8.7% 8.8% 9.2%

Gross Write-offs (ARS M)23 511,554 1,983,337 1,150,470 859,081 465,262

Recoveries (ARS M)23 181,026 662,279 476,468 281,386 123,681

Net Write-offs (M ARS)23 330,528 1,321,058 674,002 577,695 341,581

Anualized Net Write-offs / Average period balance (%) 10.2% 10.7% 7.5% 11.2% 13.3%



Supermarkets 7.8% 8.3% 7.2% 7.1% 7.1%


PERU 1Q20 4Q19 3Q19 2Q19 1Q19

Net Loan Portfolio (MM PEN) 918,872 913,778 862,094 855,825 849,782


Debt balance >90 (%) 3.6% 4.0% 4.2% 4.2% 3.9%

Gross Write-offs (PEN M)23 30,094 188,090 145,033 97,695 50,300

Recoveries (PEN MM)23 4,553 24,406 18,594 11,939 6,445

Net Write-offs (PEN CLP)23 25,541 163,684 126,439 85,756 43,855




Supermarkets 11.1% 12.5% 11.9% 12.4% 12.0%

Department Stores 37.0% 34.1% 38.5% 37.8% 38.7%

BRAZIL24 1Q20 4Q19 3Q19 2Q19 1Q19

Net Loan Portfolio (MM BRL) 601,242 618,787 574,127 566,718 568,760


Debt balance >90 (%) 14.2% 14.5% 15.6% 15.7% 16.5%

Gross Write-offs (BRL M)23 25,074 107,992 88,764 64,591 34,082

Recoveries (BRL MM)23 1,832 7,877 5,669 4,271 1,898

Net Write-offs (M BRL)23 23,242 100,115 83,095 60,320 32,184




Supermarkets 26.7% 29.5% 30.8% 31.0% 29.3%

COLOMBIA 1Q20 4Q19 3Q19 2Q19 1Q19

Net Loan Portfolio (M COP) 877,392 900,707 854,570 847,131 835,730


Debt balance >90 (%) 2.6% 2.6% 2.8% 2.9% 2.6%

Gross Write-offs (COP M)23 22,058 90,760 68,101 45,229 24,581

Recoveries (COP M)23 551 2,196 1,773 1,262 656

Net Write-offs (M COP)23 21,507 88,563 66,328 43,967 23,925




Supermarkets 17.6% 18.1% 17.4% 17.1% 15.5%


24 Includes GBarbosa only 25 The balance of debt greater than 90 days includes all debt from 91 days, debt greater than 180 days is not excluded

first quarter 2020 resultss2.q4cdn.com/740885614/files/doc_financials/2020/q... · as reported...

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