Cencosud+Corporate+Presentation+2013

7/30/2019 Cencosud+Corporate+Presentation+2013

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Cencosud2013Corporate Presentation


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The information contained herein has been prepa(Cencosud) solely for informational purposes and isa solicitation or an offer to buy or sell any securi

treated as giving investment or other advice. No repeither express or implied, is provided in relacompleteness or reliability of the information containexpressed in this presentation are subject to chanCencosud is under no obligation to update or keep

contained herein. The information contained hereincomplete and is qualified in its entirety by referinformation included in the preliminary offering meand its respective affiliates, agents, directors, paaccept no liability whatsoever for any loss or damageof the use of all or any part of this material.

This presentation may contain statements that are forisks and uncertainties and factors, which are basedand projections about future events and trends thatbusiness. You are cautioned that any such forward-

not guarantees of future performance. Several factothe estimates and assumptions on which these forware based, many of which are beyond our control.



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Cencosudat a Glance


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To be oneof the most profiand prestigiousretailers

in Latin America



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2005

Cencosud Cencosud

2013

368 Supermarkets; 0.7 mn sq meters

19 Shopping Centers; 0.4 mn sq meters

44 Home Improvement; 0.4 mn sq meters

22 Department Stores; 0.1 mn sq meters

895 Supermarkets; 2.3 mn sq

29 Shopping Centers; 0.8 m

82 Home Improvement; 0.7

78 Department Stores; 0.4 m

RevenuesEvolution(USD MM)

CARG 2005 2013: 20%


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Investmenthighlights


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Large scaleMulti-format retailerIn Latin America


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Cencosud is a leading multi-formatretailer in south America

Leadership Positions In All Markets Net Revenue

1 Breakdown by business exdude Other segment, calculated on figures for the last twelve months ended March 20133 Last twelve months ended September 2013; figures converted to USD based on end-period as of December 2012, March 2012 and March 2013 exchange rate of 479.96, 487.44 and 472.03 respectively

LTM net revenuesof US$19,063 million3

2nd Supermarkets2nd Home Improvement Stores2nd Shopping Centers2nd Department Store

4th Supermarkets

Northeast Region (#1)Minas Gerais (#2)Rio de Janeiro (#3)

1st Supermarket

1st Home Improvement2nd Shopping Centers

2nd Supermarkets

1st Supermarkets

PERU 8%

BRAZIL 23%

ARGENTINA

27%

2%ShoCen

12%HomeImprovement

10%DepartmentStores


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With a well recognized brand portfolio

N StoresSellingSpace (m2)

% of Sa

2,252,827

712,105

378,872

772,708

895

82

78

30

Supermarkets

Home Improvement

Department Store

Shopping Centers

High End

Mid-To-Low End

High End

Mid-To-Low End

75,

11,

8,3

1,8


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Opportunity to continueExpanding in high-growth,underpenetrated markets


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Attractive macroeconomicenvironment and favorable demographics

GDP per capita 2012 (US$ thousands)

6.1 11.5 8.1 12.5 15.4 49.6

Source: IMF

Solid real GDP growth

6,5%6,4%

3,8% 3,7%3,5%

0,2%

6,0%

4,2%4,5%

4,1%4,5%

3,0%

Peru r entina Colombia Brazil Chile U.S.

CAGR0711 CAGR1216

Average:

4.7%

Average:

4.8%

2012 Population (mm)

These5countriesrepresent63%ofLatinAmericasGDP


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in markets with substantial opportunitiesfor sustained growth in the retail sector

Home improvement area per capit

Supermarkets area per capita (sqm

Department stores area per capita

Underpenetrated food retail sector

Source:ILACADandUSCensusBureau,figuresasofDecember2011

Retail sales in shopping malls (%)

Source:BMI,INDEC,ICSC,ABRASCE,localbankingregulators,ABECS,

Credit cards per capita

n.a.


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Retail momentum in our growth markets

BRAZIL

Rise of the purchasinFocus on middle classInformality reduction2014: World Cup

2016: Olympic Games

PERUBaby boom generatio

Lowest unemploymen

COLOMBIAGrowing formal secto

Greater purchase powLower risk

O t


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Opportundifferent m

Org+ a

Organic growthMulti-format StrategyExpansion

Cash cow

Lead in profitabilityStrong cash generation

Organic growth


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Expertise doin

business inchallenging

environments

T t d t


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Targeted programs to engage cons

boost productivity & profitabilityBrazil:

SAP implementation on going, ending stores incorporation by July and Distribution Centers by Aug

Unification process of check outs: EmporiumCompleting unification process of vendor contracts among all flags in Brazil

Colombia:

Rebranding and Segmentation

Assortment redefinitionCultural Transition

Marketing & Advertising:

Johnson new image: new celebrities communicating and building a close and convenient brand


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Navigating challenging market conditions

Experience managing in high-inflation markets

Local Management Managing costs Dealing with currency controls

Multi-decade experience in Argentina Presence in the country for the last 3 decades Always delivered positive EBITDA Inflation managed and leveraged by negative WC,

payment terms longer than cash income Growing formal market because of tougher labor and

tax regulations Argentina self funding own growth plus strong cash

delivery

Net debt / Ebitda < 0,50%, healthy and strongfinancial position and crisis management


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Track recordof successful

acquisitions

Cencosud has a proven track record in successfully


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Cencosud has a proven track record in successfullyintegrating acquisitions and realizing synergies

IPO in theSantiago Stock

Exchange

2009 LTM 1Q13

Number of stores

Growth (%)

Selling space (million sqm)

Net revenues (US $ million)

648

2.5

10,975

1,085

4.1

19,063

67%

64%

74%

Adjusted EBITDA (US $ million) 2 945 2,019 114%

Demonstrated abil ity to

integrate and improve

acquired businesses

Net debt / EBITDA 3 3.07x 3.66x 19%

Chilean market consolidation

Expansion in key metrics

Acquisitions and net revenueevolution (US$bn)


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Improving

BalanceSheet

Financials

Revenues evolution (US$ bn)


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Revenues evolution (US$ bn)

Adjusted EBITDA (US$ mm) and margin (%)

648 825 982Stores:

8.5% 8.3%

6

7.2%

2010 2011 2012 1Q

Cencosud has consistently deliveredstrong financial results

+22%CAGR

2010 2011 2012 1Q

+12%CAGR

N t lN t d bt l ti (US$b )


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With an improving balance sheet after theCompanys increase in leverage

Net leverage

Total debt / equityInterest coverage

Net debt evolution (US$bn)

Amortization schedule (US$mm)


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Breakdown by issuer

Amortization schedule (US$mm)

Breakdown by currency Breakdown

Source: Cencosud Note: Includes cross-cuNote: Includes cross-currency swaps

Cencosud S.A.

SubsidiariesVariable rate

Diversified Debt Structure


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Roadmaporganic g

and contintegrati

Capex (US$mm)1


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OrganicGrowth

Capex (US$mm)

Country Capex (USD mm) Details

Chile USD242million 17supermarkets,1ParisStore,1EaBrazil USD116million 15supermarketsPeru USD80million 10supermarkets,5departmentstoArgentina USD23million 5supermarketsand2EasystoresColombia USD80million 1supermarket,1EasystoreandreMaintenance

USD

90

million

IT USD100million1Excludesacquisitions


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CHILE:Continue John

Unlocking value from existing assets

PERU: Paris Departm

Financial Retportfolio

COLOMBIA: Discontinue c

format Rebranding s

Jumbo & Met Improve layou Integrate reg Synergies fro

develope Homand shoppingBRAZIL:

SAP Implementation in Prezunic and Bretas Consolidated negotiations with suppliers Reduce Shrinkage Improve employee profitability per sqm

P iti d t b


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Takeaways

Positioned to bengrowth economies consumption acros

America

Scale brand diversexposure to differe

Track record and diversity offers comadvantage

Continuing to growopenings

Integrating acquis

greater sales & eff


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Segment Overview 1Q13

SUPERMARKETS


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Source:Cencosud.Figuresconvertedto USD,exchangeratebytheendofMarc

SSS evolution by country i

Adjusted EBITDA evolution (US$ mm)

Revenue evolution (US$ bn)

+19%

+11%

1Q 2012 1Q 2013

1Q 2012 1Q 2013

HOME IMPROVEMENT


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Adjusted EBITDA evolution (US$mm)

Revenue evolution (US$bn)

+11%

+6%

1Q 2012 1Q 2013

1Q 2012 1Q 2013

1Q12

DEPARTMENT STORES


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* Non comparable figures. In 1Q13, SSS co

Adjusted EBITDA evolution (US$ mm)


+15%

+38%

1Q 2012 1Q 2013

1Q 2012 1Q 2013


1Q12

SHOPPING CENTERS


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Adjusted EBITDA evo

SHOPPING CENTERS


+39%

1Q 2012 1Q 2013 1Q 2012

FINANCIAL SERVICES Gross loanportfolio evolutio


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CHILE ARGENTINA P

Provisi

406.317

418.316

429.526

1Q11 1Q12 1Q13

MM

CLP

7,2% 7,6%

7,9%

1Q11 1Q12 1Q13

185239

277

1Q11 1Q12 1Q13

MM

USD

9,1%6,9%

5,4%

1Q11 1Q12 1Q13

44

1Q12

11,5%

1Q12

Provision/ Loans (%)Provision/ Loans (%)


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Cencosud+Corporate+Presentation+2013

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