Crecimiento del Retail Chileno enColombia

Crecimiento del Retail Chileno en Colombia Mayo 2012

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Sector Comercio y su impacto…..

Los canales modernos y su desarrollo han tenido un impacto significativo: – Expansión de la demanda – Deflación – Dinamizador de la eficiencia industrial – Educación del consumidor – Desarrollo y modernización del canal tradicional

• El Comercio, motor del crecimiento económico – 6.9% en el 2011 • Mayor generador de empleo – mas del 21% 2

Resumen de la Empresa

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Cencosud is a leading multi-format retailer in Latin America…

Key metrics (2011) Colombia 

35,360 m2 selling space

Brazil



4 Home improvement sores



380,845 m2 selling space



152 Supermarkets



0.9 million active credit cards (JV with Bradesco)

Peru 

288,081 m2 selling space



74 Supermarkets



2 Shopping Centers



0.3 million active credit cards

Number of stores: Selling space: Number of customers: Number of employees:

825 3,121,089m2 800mm 131,505

Credit cards issued: Market capitalizaIon1: Net revenues: Adjusted EBITDA2: Loans outstanding:

4.2mm US$15,108 mm US$15,625 mm US$1,287 mm US$1.5 billion

Stores and shopping centers (2011) Chile

Formats

Total



1,295,240 m2 selling space

Supermarkets

189

269

152

74

-

684



189 Supermarkets

Home Improvement

29

48

-

-

4

81



29 Home improvement stores

Department stores

35

-

-

-

-

35



35 Department stores

Shopping Centers

9

14

-

2

-

25



9 Shopping Centers

262

331

152

76

4

825



2.2 million active credit cards

Argentina 

1,121,563 m2 selling space



269 Supermarkets



48 Home improvement stores



14 Shopping Centers



0.9 million active credit cards

Total

Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 As of March 15, 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

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‌ with a well-recognized brand portfolio and integrated multi-format strategy‌

Formats

Brands

Market position # 2 Chile and Argentina # 1 Peru # 1 Minas Gerais, # 2 Northeast Region and # 3 Rio de Janeiro (Brazil)

Supermarkets

Department stores

# 2 Chile

Home Improvement

#1 Argentina # 2 Chile

Shopping Centers

# 2 Chile # 2 Argentina

Consumer Finance

Chile: 2.2 million cards Brazil: 0.9 million cards Argentina: 0.9 million cards Peru: 0.3 million cards

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‌and a proven track record in successfully integrating acquisitions

Expansion in key metrics 2006

2011

2011 vs. 2006

# of stores

486

825

1.7x

Selling space (mm sq. meters)

1.9

3.1

1.6x

5,874

15,625

2.7x

495

1,287

2.6x

6,223

13,1082

2.1x

Net revenues ($ million) Adjusted EBITDA ($ million)1 Market capitalization ($ million)

And a new cycle of growth has began

IPO in the Santiago Stock Exchange Chilean market consolidation

During last five years Cencosud has made 8 acquisitions for more than US$2.2 billions

Opened the first supermarket

2012

2011

2010

6

2009

2008

2007

2006

2005

2004

2003

2002

2000

1993

1988

1982

1976

Source: Cencosud, Factset Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 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 2 As of December 31, 2011

Revenues and EBITDA continue their positive evolution

Revenues evolution (USD$ bn)

+12%

EBITDA ($ mm) and EBITDA margin (%) evolution

+25.2%

 Revenues in 2011 increased 28%, due mainly to double digit sales growth in all the business divisions  Consolidation of Bretas and 72 new openings contributed to sales expansion  Full year EBITDA increased by 19% due to better operations performance Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 4Q 2010 and 4Q 2011 figures in IFRS; CAGRs calculated in local currency; Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 7

EBITDA comparables (CLP MM) 2011

2010

Net Profit (Loss)

298,426

306,481

‐2.6%

Result of indexation units

‐31,289

‐15,657

99.8%

Financial Income

10,714

16,857

‐36.4%

Finance Costs

‐136,728

‐79,607

71,8%

fluctuation

Income taxes

‐119,198

‐76,169

56.5%

higher loss versus 2010).

‐358

‐661

‐45.9%

67,564

37,573

79.8%

Depreciation

‐120,174

‐102,310

17.5%

EBITDA

627,895

526,455

19.3%

8.3%

8.5%

‐0,2Pt

637,779

528,503

20.7%

8.4%

8.5%

‐0,1Pt

Income taxes Paris Bank Revalued

EBITDA margin

Adjusted EBITDA Adjusted EBITDA margin

Cencosud’s

calculation

of

EBITDA includes a non cash effect that came from currencies (CLP

57,121

mm

Retail operations account for more than 95% of revenues, while Adjusted EBITDA contribution from Brazil has increased to 14%

Diversified revenue breakdown Peru 8%

Brazil 21%

Colombia 1%

Shopping Financial centers services Department 2% 4% Stores 9%

DIY 13%

Argentina 29%

Diversified adjusted EBITDA breakdown1,2 Peru 8% Brazil 14%

Chile 42%

Food retail 73%

Financial services 13% Shopping Food centers retail 14% 54% Department stores 7% DIY

Chile 50%

12%

Argentina 29%

2011 FY revenues of US$15,625 million

2011 FY Adjusted EBITDA2 of $1,287 million

 Diverse operational and geographic footprint  Supermarkets represent 73% of revenues and core retail operations 96%  Brazil currently represents 21% and 14% of revenues and Adjusted EBITDA, respectively  Brazil contribution to increase in following quarters subsequent to acquisition of Prezunic Note: Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012 1 Breakdown excludes Colombia’s EBITDA of (US$43.9mm) and Other segment’s EBITDA of (US$1,758mm) 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

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Financial Highlights

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Although recent acquisition have increased total indebtedness…

Capex (US$ mm) excl. acquisitions

Net debt evolution (US$ bn)

Total debt evolution (US$ bn)

 Increase in financial debt as a result of the acquisition of Bretas (both acquisition funding and debt assumed)  Issuance of 144A-RegS bond Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 2010 and 2011 figures in IFRS. Figures exclude Prezunic, acquired on January 2, 2012

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‌balance sheet flexibility and solid operational performance have allowed the company to maintain prudent credit ratios Total debt / EBITDA

Net debt / EBITDA

EBITDA / Interest expenses

Financial debt / Equity

Source: Cencosud Note: 2005 – 2009 figures in Chilean GAAP while 2010 and 2011 figures in IFRS. Figures exclude Prezunic, acquired on January 2, 2012

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Our strategy going forward

Continue to develop and expand our multi-format and multi-brand approach

 Leverage on multi-format business model to drive traffic in stores  Materialize synergies across our different business units  Develop and expand new formats in our key markets  Streamlining distribution and back-office capabilities and improving operating

Focus on operating margins and cash flows

efficiencies

 Emphasis on financial discipline resulting in high debt ratings while implementing capital expenditure and expansion plan with sufficient flexibility

 Significant opportunities to increase our presence and market share in Expand through growth in selective markets

selected countries

 Our leading position, focus on improving profitability and store openings track record provide us with a solid foundation for continued growth

 Gain scale and access to attractive locations and strong local brands through Continue to pursue opportunistic acquisitions while maximizing synergies

opportunistic acquisitions in key markets

 Successful integration of all of our acquisitions will facilitate our ability to implement synergies

 Focus on Brazil and Peru

Enhance customer loyalty

 Increase our share of our customers’ total retail spending  Competitive prices, quality products, convenient locations, personalized service and an attractive “one-stop” shopping environment

 Complementary consumer finance services 13

Principales detalles del Negocio

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Home Improvement: double digit growth led by strong SSS EBITDA evolution (US$ mm)

Revenues evolution (US$ mm) +21%

+25%

+15%

Geographical presence and market position

+12%

SSS evolution by country in local currency

81 stores 38.3%

4 stores 13.9% 4.8%

29 stores

#2 Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency

48 stores

#1

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Department Stores: recovering same store sales growth EBITDA evolution (US$ mm)

Revenues evolution (US$ mm) +16%

+20%

+3%

Market Share by selling space – Chile1

+16%

SSS evolution in local currency

35 stores

40 stores Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency 1 As of September 2011, does not include acquisition of Johnson’s

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Acquisition of Johnson’s

Key considerations

Selling space expansion (‘000s sq. meters)

Transaction summary 

In December 2011, we acquired an 85.58% interest in Johnson’s S.A. (“Johnson’s”)



Department store chain operating 40 stores throughout Chile under the Johnson’s brand and an additional 13 stores using the FES brand



Adding 120,000 m2 of selling space, representing a 44% increase over our existing Paris stores Financial highlights





Aggregate purchase price of Ch$32,606 million. Ch $17,576 million used to repay all assumed indebtedness at Johnson’s, while the rest will be used for working capital

392

Largest department store presence in Chile (‘000s sq. meters) + +44%

In 2011, Johnson’s registered sales of Ch$118,447 million from its retail operations Integration and objectives



During the next months, we plan to replace all Johnson’s credit cards with Cencosud credit cards,



With the acquisition we will improve our coverage of the low and middle income market segments in Chile

Source: Company filings Note: Cencosud figures as of 4Q11; other figures as of latest reported date (3Q11)

Shopping Centers: leading a new cycle of growth Geographic presence and occupancy rates 25 Shopping Centers 2 Shopping Centers Gross Leased Area: 54,750 m2 95% occupancy rate

#2 9 Shopping Centers Gross Leased Area: 282,693 m2 98% occupancy rate

#2 14 Shopping Centers Gross Leased Area: 227,396 m2 99% occupancy rate

EBITDA evolution (US$ mm)

Revenues evolution (US$ mm) +16%

+17%

+9%

+1%

Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; figures exclude intercompany operations

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Financial Services: increasing presence in Peru and stable credit quality Geographic presence and active cards

Gross loan portfolio evolution by country (US$ mm)

Total Cards 4.2 MM

Credit card penetration by division 4Q 2011

Loan loss allowance as % of all loans

Chile

Argentina



In 4Q11, the company registered an anti-cyclical provision of CLP542mm to anticipate future changes in the macroeconomic environment



In August 2011, we launched our own private label credit card in Peru. We estimate that we will receive the operation license from SBS in the first quarter of 2012 and expect to start operations in the second quarter of 2012.

Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency

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Supermarkets: Supermarkets: leading position in Peru, Chile and Argentina, and runner up in Brazil

#1 45%

Peru

Brazil

74 stores

183 stores1

35% 20%

#2

State of Minas Gerais (23%)

#1 #3

Rio de Janeiro (13%)

Cencosud Supermercados Falabella Peruanos

34%

North East Region (34%)

Chile

Argentina

189 stores

269 stores

#2 27%

#2 22%

684 stores Wal-Mart

Cencosud

SMU

* Dia Stores not include

ď śâ€Ż In the last 12 months, the Supermarket division added 72 stores Source: Public filings, Planet Retail, ABRAS, INDEC Note: Market share in terms of sales; Chile and Peru figures as of September 2011; Peru market share estimated based solely on reported sales from the three main competitors 1 Includes Prezunic acquisition (31 stores) in Rio de Janeiro

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Supermarkets: strong performance in Chile, Argentina and Peru Revenues evolution (US$ bn)

EBITDA evolution (US$ mm) +28%

+31%

+13%

EBITDA breakdown by country, 2011

+27%

SSS evolution by country in local currency

22.8%

8.7% 4.6% -0.3%

Source: Cencosud Note: Figures in IFRS; Growth rates calculated in local currency; Figures exclude Prezunic (31 stores and net sales of R$2.2 billion during 2011) acquired on January 2, 2012

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The Prezunic acquisition positions Cencosud as a leader in yet another regional market in Brazil…

Geographic presence

Investment Highlights  Increase exposure to Brazil  Market with attractive retail fundamentals  Acquisition of a leader in the Rio de Janeiro market  Substantial growth opportunities  Value creating transaction to Cencosud shareholders

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National ranking market share (%)

4 19 71

94 8

1 4

22 52

Legend

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GBarbosa Supermarkets (including Eletro Show 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 Source: Company filings, Planet Retail, ABRAS, IBGE Note: Market share by % of industry’s gross revenues

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EASY COLOMBIA • Ventas 2011 • Crecimiento en ventas vs. 2010 • Empleados directos

$ 152.215MM 19.8% 566

La mejor alternativa para el mercado Colombiano La mejor experiencia de compra para nuestros clientes Excelente canal de distribución para nuestros proveedores La mejor oportunidad de desarrollo para nuestros Colaboradores Alto impacto en el mejoramiento de la calidad de vida de los Colombianos

"Cuidar nuestra Gente es cuidar nuestro Cliente”

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