Cencosud Department

Stores

Ricardo Bennett

Agenda

- Industry in Chile

- Key Indicators for Paris

& Johnson

- Challenges by Unit

US$ 7.5 billion

9 Operators

1,400,000 mt2

Market Size

Highly Dynamic

Store Investment

Financial Retailing

Marketing plays a critical role

Creating business together

Seduction, ongoing renovation

2 Major Segments…

Upper-

Middle

Segment

Lower-Middle Segment

… and specialty retailers are entering

• Focused on women

• A fashion brand

• Surprising and innovative

• Aspirational but multi-segment appeal

• Service excellence

• Development of private labels / value

• Differentiation through exclusive brands

• 40 stores from 4,000 to 12,000 m2

• For the family, close and reliable

• Focused on the C3-D segments

• Convenience brand

• Clothing as key driver

• Primarily sells private label brands

• 38 stores from 2,000 to 4,000 m2

• In downtown areas

• Low cost operation

• Independent unit but supported by Paris

• Goal is to build brands and create value and

differentiation for Paris and Cencosud Shopping

Centers

• 10 national and international brands

• 79 stand-alone stores

• 350 corners in Paris

Market Share

Paris 20,4%

Johnson 3,6%

Falabella 31,0%

Ripley 17,5%

Hites 4,6%

abcdin + Dijon 7,3%

La Polar 8,2%

Corona* 4,0% Tricot** 3,3%

Source: Financial statements made public

by each company, as of December 2013

*, ** Estimates based on information

collected in the press

Agenda

- Industry in Chile

- Key Indicators for Paris

& Johnson

- Challenges by Unit

Evolution of Key Metrics - Paris

Revenue US$ Millions

939

1.132

1.256

1.377

1.475 1.482

SG&A %

27,6%

24,3%

23,5% 23,2% 23,2% 23,3%

Note: LTM as of June 2014. Dollar at $550

Consolidated with Eurofashion

Margin %

26,3%

28,3% 27,7% 27,8% 27,8%

26,6%

EBITDA US$ Millions

Evolution of Key Metrics - Paris

Main Impacts

• Exchange rate

• Deceleration

• Labor costs 20,71

74,17

85,44

98,62 105,11

88,47

2009 2010 2011 2012 2013 12 Meses

Consolidated with Eurofashion

Note: LTM as of June 2014. Dollar at $550

LTM

Evolution of Key Metrics - Johnson

Revenue US$

Millions

234

263

273

2012 2013 12 Meses

Margin %

23,7%

28,5%

25,4%

2012 2013 12 Meses

SG&A %

35,3%

34,0%

32,4%

2012 2013 12 Meses

Note: LTM as of June 2014. Dollar at $550

Months Months Months

LTM LTM

LTM

EBITDA US$ Millions

Evolution of Key Metrics - Johnson

-20,2

-6,4

-7,9

2012 2013 12 Meses

Main Impacts

• Exchange rate

• Deceleration

Note: LTM as of June 2014. Dollar at $550

LTM

Agenda

- Industry in Chile

- Key Indicators for Paris

& Johnson

- Challenges by Unit

Challenges Paris

Impact - Bond - Innovation

Strengthen the Brand’s Value

Omnichannel Brand

Order Managment Pick Up In Store – Social Media Kiosks & Self-Service in Stores

Remodeling of main stores – 3 per year Flagship Store: Costanera Center

Renewal of the Value Proposition

High Service Quality Standards Impeccable service – Consistency across all contact channels

Speed and satisfaction in problem resolution

Incorporation of New Brands Continual seduction – Strengthen value proposition

Strengthen Teams Role of women – New and better talent

Improve Margins and Conditions

Shanghai office – Private label brands Regional negotiations

Traffic Generation and Loyalty Program

Cross-over of customers – Increase sales per ticket - Frequency

Sustainability Strategy

Responsible Consumption Involvement

Environmental Management Quality of Life at Work

Increase Market Share

and Profitability

Challenges 2015

Challenges Johnson

Reposition the Brand

Clothing Specialist Convenience Brand C3D Families

Improve Value Proposition Product – Visual – Operations – Average Prices

Increase Sales per Mt2

Above market growth

Access to New Markets Close less-profitable stores – New Talcahuano store

Enhance Financial Retailing – Access Business Credit sales - Cash advances - Insurance

Eurofashion Challenges

Become a Key Player in the Market

National and international brands

New categories

Strengthen Current Brands Brand names –MKT campaigns

Enhance Synergies with Cencosud

Joint shopping– Loyalty shopping program

Initiate International Expansion Process

Peru as a gateway to the region

Eurofashion Challenges 2015

Challenges Paris Peru

• GDP similar to Chile with greater growth potential

• Population of 31 million vs. 17 million in Chile

• Low penetration of retail format

• Solid position of Cencosud in Peru (Wong-Metro)

• Opening economy similar to Chile

• Support of shopping and financial retailing business in Peru

Peru

Why Paris Peru?

6 stores

US$ 80 million

38,000 mt2

Arequipa – Lima – Ica – Cajamarca

Estimated revenue 2014

Peru

Upcoming Openings

Mall Plaza - Trujillo Plaza Bellavista / Lima La Rambla - Lima

Peru

Thank you!