Earnings Presentation First Quarter 2012 May 2012
Company overview Key metrics (LTM 2012 1 ) Number of stores: 906 Selling space: 3,3 million sq 2 Number of customers: 800mm Number of employees: 139,082 Credit cards issued: 4.3mm Market capitalization 1 : US$12,5 bn Supermarkets Home Improvement Department Stores Financial Services Shopping Centers 726 stores across 4 countries 81 stores in Argentina, Colombia and Chile 74 stores in Chile USD 1.5 bn consumer loans outstanding 25 shopping centers in Argentina, Chile and Peru Revenue Breakdown (LTM 3 ) Adjusted EBITDA 2 Breakdown (LTM 3 ) Department Stores 9% Shopping Centers 2% Financial Services 3% Home Improvement 12% Supermarkets 74% Department Stores 6% Shopping Centers 14% Financial Services 13% Home Improvement 12% Supermarkets 56% Total: US$16,456 mm Total: US$1,310 mm Source: Cencosud and AC Nielsen Note: Revenue and Adjusted EBITDA breakdown exclude Other Businesses 1 As of March 17, 2012 2 EBITDA, further adjusted to exclude the effect of exchange differences, increase on revaluation of investment properties, results from price level restatement and negative goodwill associated with Johnson s acquisition 3 Last twelve months ended March 2012 2
Revenues and EBITDA continue their positive evolution Revenues evolution (US$bn) Adjusted EBITDA (US$mm) and margin (%) +26% +35% +5% 9,9 12,2 15,6 +23% 3,6 4,4 Capex (US$ mm) excl. acquisitions +80% +46% 1,187 747 377 208 298 Source: Cencosud Note: Figures in IFRS; s calculated in local currency assuming CLP per USD exchange rates of 507, 468, 479 and 487, 519 for end of period 2009, 2010, 2011, 1Q2011 and 1Q2012, respectively; Figures in IFRS 3
balance sheet flexibility and solid operational performance have allowed the company to maintain sustainable credit ratios Net debt evolution (US$bn) Net debt / Adjusted EBITDA Duration of debt is 6 years at March 2012 2,0 3,1 3,7 4,7 2,7 2,7 3,1 3,6 2009 2010 2011 1Q 2012 Adjusted EBITDA / Net interest expenses 2009 2010 2011 1Q 2012 Financial debt / Equity 3.6 7.7 7.0 4.5 57% 53% 72% 80% 2009 2010 2011 1Q 2012 2009 2010 2011 1Q 2012 28% of Cencosud s debt is USD denominated, however, after cross currency swaps the exchange rate risk reduce to 9% The remaining is primarily UF and CLP denominated debt, matching the strong Chilean component in the EBITDA generation Source: Cencosud Note: Figures in IFRS; Ratios calculated in local currency assuming CLP per USD exchange rates of 507, 468, 519 and 487 for end of period 2009, 2010, 2011 and 1Q2012 4
Investment Highlights First Quarter Results Financial performance
Supermarkets: The impact of Prezunic Revenues evolution (US$bn) Adjusted EBITDA evolution (US$mm) +26% +31% 7,2 8,8 11,5 2,6 +25% 3,3 452 606 777 172 +13% 193 Geographical presence and market position SSS evolution by country in local currency 74 stores #1 191 stores #2 726 stores 272 stores #1 189 stores North East Region (34%) #2 State of Minas Gerais (23%) #1 Rio de Janeiro (13%) #3 11% 7% 7% 2% 6% 5% (1%) 1% (3%) (2%) Source: Cencosud, Public filings, Planet Retail, ABRAS, INDEC Note: Figures in IFRS; Growth rates calculated in local currency; figures converted to USD at exchange rates of 507, 468, 519, 479 and 487 for end of period 2009, 2010, 2011, 1Q2011 and 1Q2012, respectively; Market share in terms of net revenues, as of 2011; Chile and Peru figures as of September 2011; Peru market share estimated based solely on reported sales from the three main competitors 6 25% 23% 24% 5% 5% Chile Brazil Argentina Peru 2% 9% 22% 7% 3%
Supermarkets: Prezunic Acquisition Geographic presence Investment highlights US$497 million purchase price Increase exposure to Brazil Scale in Rio de Janeiro: 3rd largest supermarket chain Substantial growth opportunities: new formats, private labels, consumer finance Strong growth track record and brand recognition 72,108 m 2 selling space and 31 stores incorporated Prezunic in 1Q12 accounted revenues of USD337 MM National ranking market share (%) Legend GBarbosa Supermarkets (including EletroShow and pharmacies) Perini Mercantil Rodrigues Bretas Supermercados Prezunic Supermercados #1 Minas Gerais #2 Northeast region #3 Rio de Janeiro Present in 8 states accounting for approximately 33% of national GDP with aggregate real GDP growth (2005-2009) of 3.4% and 78.6mm inhabitants CBD Carrefour Wal-Mart Cencosud Zaffari Prezunic DMA Angeloni 2.7 1.2 1.2 1.0 0.9 17.9 14.4 11.1 CBD Carrefour Wal-Mart Cencosud Zaffari DMA Angeloni 3.9 1.2 1.0 0.9 14.4 11.1 17.9 Source: Company filings, Planet Retail, ABRAS, IBGE Note: Market share by % of industry s gross revenues COOP 0.9 COOP 0.9 7
Supermarkets: Competitive Landscape in Brazil Net Revenues (US$bn) Cencosud Brazil Carrefour Brazil CBD Food Walmart Brazil 118% 17% 19% 17% 0.2 1.1 1.1 1.7 4.2 9.1 12.3 13.0 16.5 17.3 7.7 9.8 10.4 13.3 15.4 7.7 9.2 9.8 12.6 14.4 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Selling space ( 000s m 2 ) 53% 4% 3% 10% 333 458 1,258 1,356 1,460 1,552 1,476 1,338 1,361 1,412 1,469 1,496 1,431 1,547 1,797 1,942 2,127 83 116 124 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Only active and successful consolidator in Brazil 1 Date Target Acquirer Amount (US$mm ) EV/sales Apr-07 Atacadao Carrefour 1,087 0.6x Nov-07 Assaí CBD 197 0.4x Nov-07 GBarbosa Cencosud 430 0.5x Mar-10 Super Fam ilia Cencosud 33 0.3x Apr-10 28 - Oct-10 Bretas Cencosud 705 0.5x Jan-12 Prezunic Cencosud 497 0.4x Median 0.5x Source: Company filings, Planet Retail, equity research Note: Carrefour Brazil figures based on gross revenues; Cencosud figures are pro-forma to Prezunic acquisition; Average FX rate during the respective period used for calculations 1 Only considers transactions with deal size of US$25mm and greater 8
Home Improvement: Remarkable Argentina performance Revenues evolution (US$mm) +28% Adjusted EBITDA evolution (US$mm) +40% 1.202 1.613 1.958 472 +12% +11% 171 137 87 529 46 51 Geographical presence and market position SSS evolution by country in local currency 4 stores 81 stores 28% 24% 32% 28% 30% 2% 2% 12% 5% 11% 7% 11% 3% (4%) 29 stores #2 48 stores #1 9 Chile Colombia Argentina Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; figures converted to USD at exchange rates of 507, 468, 519, 479 and 487 for end of period 2009, 2010, 2011, 1Q2011 and 1Q2012, respectively; Market position based on net revenues, as of 2011
Shopping Centers: 2Q12 opening of Costanera Revenues evolution (US$mm) Adjusted EBITDA evolution (US$mm) +18% +21% 194 230 268 61 +9% 67 140 175 206 +0,4% 44 44 Geographic presence and occupancy rates 25 Shopping Centers 2 Shopping Centers Gross Leased Area: 54,750 m 2 95% occupancy rate #2 9 Shopping Centers Gross Leased Area: 282,693 m 2 98% occupancy rate #2 14 Shopping Centers Gross Leased Area: 228,999 m 2 99% occupancy rate Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; figures converted to USD at exchange rates of 507, 468, 519, 479 and 487 for end of period 2009, 2010, 2011, 1Q2011 and 1Q2012, respectively; Figures exclude intercompany operations; Market position based on gross leased area, as of 2011 10
Costanera Center Largest multi-purpose commercial complex in Chile 335 stores, including Jumbo, Easy and Paris Food court, 12 movie theaters, bowling court, medical centers and gym Shopping mall opened May 2012 with 150,000 sq GLA 2 premium Office Towers and 1 Hotel schedule to open end of 2013 Costanera Center tower, designed by Cesar Pelli, is the highest building in South America, standing 300 meters tall Total capex of USD 1,098 MM Mitigation costs are USD 63 MM, of which USD 27 MM are already incurred
Financial Services: Business Overview Credit card penetration by division 1Q 2012 Gross loan portfolio evolution by country (US$mm) Chile Chile Argentina. 47% 20% 18% 8% 838 1.064 1.104 1.101 176 243 239 Department stores Home improvement Hypermarkets Supermarkets 68 770 888 861 862 Argentina 16% 8% 2009 2010 2011 1Q 2012 Home improvement Hyper/Supermarkets Loan loss allowance as % of all loans Brazil 41% Chile Argentina 10,9% Hyper/Supermarkets 10,0% 7,6% 7,6% 7,2% 7,6% 7,6% 6,9% Peru 8% 2009 2010 2011 1Q 2012 Hyper/Supermarkets Source: Cencosud Note: Figures in IFRS; Assumes CLP per USD exchange rates of 507, 468, 519 and 487 for end of period 2009, 2010, 2011 and 1Q2012, respectively 12
Market opportunities and strategy Market opportunities Strategy Ninth largest consumer market in the world: Retail sales of US$1.1 trillion during 2011 1 Demographics capable of supporting Cencosud stores: 100 cities above 250 thousand in population Underpenetrated formal retail segment Continue to develop and expand our multiformat and multibrand approach Best macroeconomic environment in the last 50 years Strong consumption, stable inflation rate and employment growth Underpenetrated formal retail market (30% of total spending) Focus on operating margins and cash flows Growing purchasing power and household spending Developed credit markets with access to middle income consumers Organic expansion in selective markets Underpenetrated market with substantial growth opportunities Solid macroeconomic fundamentals Continue to pursue opportunistic acquisitions while maximizing synergies Sustainable household consumption growth coupled with a expansionary credit market environment Underpenetrated retail market with vast potential Enhance customer Enhance loyalty custome r loyalty 1 Planet Retail 13
Department Stores: Impacted by Johnson s Revenues evolution (US$mm) Adjusted EBITDA evolution (US$mm) +24% +117% 929 1.227 1.422 +27% 80 96-62% 298 377 20 13 5 Market Share by selling space Chile 1 SSS evolution in local currency 2009 La Polar 16% 19,7% 17,9% Ripley 24% Cencosud 36% 35 stores 5,2% 9,4% Falabella 24% 39 stores -1,7% Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; figures converted to USD at exchange rates of 507, 468, 519, 479 and 487 for end of period 2009, 2010, 2011, 1Q2011, 1Q2012, respectively 1 As of December 2011, including 39 Jonhson s stores 14
Department stores: acquisition of Johnson s Key considerations Selling space expansion ( 000s m 2 ) Transaction summary In December 2011, we acquired an 85.58% interest 39 stores throughout Chile under the Johnson s brand and 13 stores using the FES brand 120,000 m 2 of selling space incorporated Financial highlights Aggregate purchase price of Ch$32,606 million Of which, Ch$17,576 million to repay indebtedness at Johnson s, while the rest to be used for working capital 2011 sales of Ch$118,447 million from its retail operations Integration and objectives Replace all Johnson s credit cards with Cencosud credit cards Improve our coverage of the low and middle income market segments in Chile 216 Paris 236 Johnson's 359 117 241 2009 2010 2011 Largest department store presence in Chile ( 000s sq. meters) + Falabella Ripley La Polar Source: Company filings Note: Figures as of 4Q11 161 241 243 236 359 +49% 15
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