Results 2014 Fourth Quarter www.cencosud.com 2 The information - - PowerPoint PPT Presentation

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Results 2014 Fourth Quarter www.cencosud.com 2 The information - - PowerPoint PPT Presentation

Corporate Presentation Fourth Quarter Results 2014 Fourth Quarter www.cencosud.com 2 The information contained herein has been prepared by Cencosud S.A. (Cencosud) solely for informational purposes and is not to be construed as a


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Fourth Quarter

Results 2014

Corporate Presentation

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2 Fourth Quarter www.cencosud.com

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.

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3 www.cencosud.com Fourth Quarter

  • Positive revenue trends, boosted by encouraging

supermarket SSS

  • Aggressive promotional activities maintain

market share

  • Delivered on stated goals for Brazil and Colombia
  • Successful international bond offering provides

financial flexibility

  • Recent progress towards strengthening balance

sheet with closing of Scotia JV 4Q14 Highlights

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Positive Revenue Trends in Food Retail

4 www.cencosud.com Fourth Quarter

  • Supermarket Sales Up By 7,7% YoY
  • Positive Trends in SSS:
  • Chile Accelerated to highest in 11 quarters
  • Colombia sustains recent progress posting above inflation expansion
  • Brazil posts positive SSS for first time in 7 quarters while positing positive

EBITDA

  • Maintained Market Leadership Despite Competitive Environment With Gains in

Chile Supermarkets YoY

  • D-Stores in Peru Deliver Positive SSS for First Time While Colombia HI Are Positive

for First Time in 5 Quarters, in Both Cases With Positive Profitability Trends

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5 www.cencosud.com

Revenue Evolution (CLP mm)

  • Revenue gains in all five business divisions and

countries

  • Chile, Colombia & Peru SSS Above Inflation Data

Showing Favorable Trend for Supermarkets

  • Peru

D-Stores Greenfield & Colombia Home Improvement Showed Positive SSS Momentum

Fourth Quarter

Adjusted EBITDA Evolution (CLP mm)

  • Argentina, Chile & Colombia Adj, Ebitda contracted partially
  • ffset by increases in Peru & Brazil
  • Chile D-Store Adj, Ebitda dropped 40% as a result of weaker

YoY consumption and challenging competitive environment

  • Argentina Adj Ebida fell on ARS depreciation of 18% and higher

SG&A on 2nd installment of collective bargaining agreements

  • Colombia Showed a decrease due to lower results in the credit

card business, partially offset better Ebitda in all the other 3 business units

+ 6,9%

  • 5,6%

W/ DO W/ DO

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7 Third Quarter 7 Fourth Quarter

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Revenue evolution (CLP mm) Adjusted EBITDA evolution (CLP mm) SSS evolution by country (local currency)

8 www.cencosud.com

  • Revenue pushed upwards by positive SSS in all of our markets
  • 12 Net Store Openings YoY or 1.,45% Selling Space Growth
  • Colombia continued to improve SSS trend with above inflation numbers
  • Santa Isabel in Chile consolidating market share
  • Brazil posts market share gains versus 3Q14
  • Argentine operations posted a 64% EBITDA contraction YoY

mainly as a result of the 2nd instalment of Collective bargaining agreements and weaker consumption environment

  • Brazil posted a weak YoY EBITDA generation; despite positing its

highest Ebitda

  • f

the last 5 quarters, with sequential improvement vs 3Q14. The company reduced headcount in 4,5% YoY

  • Chile, Colombia & Peru Posted EBITDA growth of 7,1% on

increased promotional activity and SG&A dilution

Fourth Quarter

  • Figures in CLP million

Supermarkets

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  • Revenue increased 6.2% on positive SSS across markets & the opening of 3

new stores since December 2013

  • Ebitda generation fell on 2nd installment of collective bargaining

agreements in Argentina and tougher competitive environment in Chile

  • Colombia ebitda loss narrowed 35%
  • 95.4% revenue expansion from our Peruvian operations was on the

back of 3 new stores since 4Q13 and positive SSS,

  • Ebitda generation fell on greater promotional activity in Chile due to

weaker spending, strategy helped curb inventories in 17 days YoY

Department Stores

9 www.cencosud.com Fourth Quarter

  • Figures in CLP million

Home Improvement

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  • Higher revenues across the region, led by Chile and Peru
  • Shopping Center EBITDA due to higher occupancy rates in

Chile & Peru

  • Revenues were boosted by larger portfolio in all markets
  • Financial Service Ebitda grew as a result of better

performances in all markets but Colombia

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  • Figures in CLP million

Shopping Centers Financial Services

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11

Costanera Center Leasing Process

www.cencosud.com

  • Traffic mitigation works associated with

current stage ("3A") completed

  • Currently in the process of reception of

traffic mitigation works and the first 15,000 sqm of GLA from involved authorities

  • Strong interest for office space at

landmark location

  • In negotiation / closing stage with a

number of prospective tenants

  • Lease revenues in line with market terms

Fourth Quarter

IPO Real Estate Division BTG Pactual to Advise on Possible Share Offering

Total GLA of over 2,000,000 sqm Landbank of over 6MM sqm 48 Shopping Centers across the region Total Revenues of CLP 214,850 MM (excluding related parties)

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12

Financial Ratios

www.cencosud.com

Net debt evolution (US$ bn) Net leverage (net debt / EBITDA)

Fourth Quarter

Breakdown by Rate

(After CCS)

Breakdown by Currency

(After CCS)

4,3

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FINANCIAL DEBT

USD MM

Fourth Quarter

Proforma Debt Amortization Schedule (USD million) after bond issuance

FINANCIAL DEBT

USD MM

Debt Amortization Schedule (USD million) as of December 2014

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14 www.cencosud.com

Positive momentum in Colombia to enhance performance Focus on core retail operations: Supermarkets, Home Improvement, Department Stores Examine options to further strengthen balance sheet Potential to unlock value from real estate assets Discretionary spending at D-Stores seemingly bottomed out in 4Q14 in Chile

Fourth Quarter

Closing Comments

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Marisol Fernández León IR Manager Phone +562 2959 0545 mariasoledad.fernandez@cencosud.cl

Natalia Nacif Senior IR Analyst Phone +562 2959 0368 natalia.nacif@cencosud.cl Ignacio Reyes Miranda Senior IR Analyst Phone +562 2959 0804 Ignacio.reyesmiranda@cencosud.cl

Upcoming Events BTG Pactual Conference – London April 13 & 14 Shareholder Meeting – Santiago April 24 JP Morgan Conference – London May 19 through 21