XV Capital Market Event Credicorp Capital Rodrigo Larrain, CFO Lima, 27 of Sept. 2017
CENCOSUD: Regional Leadership in Retail JV COLOMBIA 3ER SUPERMARKETS 2DO HOME IMPROVEMENT JV PERU 4TH SUPERMARKETS Leadership position in the NorthEast, Minas Gerais & Rio de Janeiro 2DO SUPERMARKETS 4TO DEPARTMENT STORES CHILE 2DO JV SUPERMARKETS HOME IMPROVEMENT DO 2 SHOPPING CENTERS 2DO DEPARTMENT STORES 2DO BRAZIL ARGENTINA 2ND SUPERMARKETS 1ST HOME IMPROVEMENT 1ST SHOPPING CENTERS 4 Note: Financial Services provided through a Joint Venture in Chile (Scotiabank), Brazil (Bradesco) and Colombia (Colpatria)
CENCOSUD: Regional Leadership in Retail INCOME BY COUNTRY (LTM as of June 17) US$ 15.741 mm ADJUSTED EBITDA BY COUNTRY (LTM as of June 17) US$ 1.037 mm1,2 (6.6% Adjusted EBITDA margin) 5% 8% 11% 9% 42% 16% 24% 60% 25% ARGENTINA CHILE 245 supermarkets 35 home improvement 79 department stores 26 shopping centers F.S: JV with Scotiabank 282 supermarkets 51 home improvement 22 shopping centers Financial Services BRAZIL 211 supermarkets Atacarejo format 3 different regions F.S.: JV with Bradesco COLOMBIA PERU 91 supermarkets 10 department stores 4 shopping centers Financial Services 101 supermarkets 10 home improvement 2 shopping centers F.S.: JV with Colpatria Note: Figures converted to USD using a constant exchange rate of CLP 664.3 per US dollar 1 Graph excludes Adj. EBITDA from Brazilian operations which presented a negative contribution of USD 26 mm 2 Adjusted EBITDA represents EBITDA plus exchange differences and gains (losses) from indexation units minus revaluation of assets. mg= Adjusted EBITDA margin. The figure includes CLP 11,647 mm of extraordinary gains from the sale of non-core properties and Teleticket in Peru. 5
CENCOSUD and the Capital Markets
UNA HISTORIA DE CRECIMIENTO1 CENCOSUD: Growing with the Capital Markets Local Development Chile and Argentina 2001 1st Bond issuance in Chile Consolidación y Sinergias IPO NYSE ~ $ 145 MM Proceso de Internacionalización Peru 15.6 Delisting NYSE 16.4 16.5 15.6 15.7 13.8 11.4 8.3 5.7 First supermarket openings 3.8 1.4 1976 9.3 9.2 IPO BCS1 4.7 2.1 1.0 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM June 1 Revenues denominated in USD using a constant Exchange rate of CLP 664.3 per US dollar 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange) '17 3: Main executed transactions, approximated figures, using each year exchange rate 7
UNA HISTORIA DE CRECIMIENTO1 CENCOSUD: Growing with the Capital Markets UNA HISTORIA CRECIMIENTO1 Local DE Development Regional Expansion Chile & Argentina 2004 2005 2006 2007 2008 IPO in Stock Market (Chile) Capital increase (swap) Bonds issuance in Chile Bonds issuance in Chile Capital increase (swap) IncaBond issuance in Peru Bond issuance in Chile ~$ ~$ ~$ ~$ ~$ ~$ ~$ 332 MM 950 MM 335 MM 52 MM 500 MM 145 MM 280 MM 2009 Bond issuance in Chile 2011 1st Regs/144ª Bond issuance Bond issuance in Chile 2012 IPO NYSE (ADS) RegS/144ª Bond issuance 2013 Capital increase Consolidación y Sinergias IPO NYSE ~ $ 360 MM ~ $ 750 MM ~ $ 115 MM ~ $ 475 MM ~ $1,200MM ~ $1,630MM Peru 15.6 Delisting NYSE 16.4 16.5 15.6 15.7 13.8 11.4 8.3 5.7 First supermarket openings 3.8 1.4 1976 9.3 9.2 IPO BCS1 4.7 2.1 1.0 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM June 1 Revenues denominated in USD using a constant Exchange rate of CLP 664.3 per US dollar 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange) '17 3: Main executed transactions, approximated figures, using each year exchange rate 7
UNA HISTORIA DE CRECIMIENTO1 CENCOSUD: Growing with the Capital Markets UNA HISTORIA DE CRECIMIENTO1 Local Development Chile and Argentina 2015 RegS/144ª Bond issuance 2016 Secondary sales of stocks Bond issuance in Chile 2017 RegS/144ª Bond issuance Consolidation of Leadership Regional Expansion IPO NYSE ~ $1,000MM ~ $ 450 MM ~ $ 250 MM ~ $1,000MM Peru 15.6 Delisting NYSE 16.4 16.5 15.6 15.7 13.8 11.4 8.3 5.7 First supermarket openings 3.8 1.4 1976 9.3 9.2 IPO BCS1 4.7 2.1 1.0 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM June 1 Revenues denominated in USD using a constant Exchange rate of CLP 664.3 per US dollar 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange) '17 3: Main executed transactions, approximated figures, using each year exchange rate 7
CENCOSUD: Growing with the Capital Markets UNA HISTORIA CRECIMIENTO1 Local DE Development Consolidation of Leadership Regional Expansion Chile and Argentina IPO NYSE Capital Increase +5.6B StockSwap Peru Bond Issuance 15.6 Delisting NYSE 16.4 16.5 15.6 15.7 13.8 11.4 8.3 5.7 First supermarket openings 3.8 1.4 1976 9.3 9.2 IPO BCS1 4.7 2.1 1.0 1982 1988 1993 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM June 1 Revenues denominated in USD using a constant Exchange rate of CLP 664.3 per US dollar 2 BCS stands for Bolsa de Comercio de Santiago (Santiago Stock Exchange) '17 3: Main executed transactions, approximated figures, using each year exchange rate 7
CENCOSUD over 15 years 2017 2002 COUNTRIES 2 X 2,5 5 RETAIL BRANDS 2 X 7,5 15 Nº STORES 54 X 20 1.115 SQM (MM) 0,5 X7 3,6 SALES (USD bn) 1,0 X 16 15,7 EMPLOYEES 17.000 X8 135.000 Notes: (1) Calculated with a 2013 Exchange rate. (2) Population in the areas where Cencosud operated in that year.
16 B Annual Sales 200M Potential Clients 1.115 Investment Grade 135K employees Stores 54 Shoppings 6,2M Sqm of land bank in the region
Case Study: Liability Management July 2017
TENDER (Comité de Finanzas Liability Management July 2017 de Junio) Original Debt Amortization Calendar Bond maturity for USD 2.000 MM January 2021 & January 2023 USD MM 1400 1200 1000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045
PERFIL DE VENCIMIENTO DE CORPORACIONES LATAM Liability Management July 2017 Forecast of the Latam Corporate Bond maturity US Treasury expectancy 10Y $57.4 $54.4 6.3 2.2 Current 2.16% $49.8 5.5 0.6 2.4 2.3 1.1 $41.9 $43.2 8.8 $38.9 6.1 3.5 2.2 $27.8 3.0 1.7 6.4 0.7 5.5 6.4 2.0 1.9 2017 2018 2.3 26.5 0.5 6.1 0.8 0.9 9.8 14.7 12.9 1.7 1.4 1.0 2020 5.5 2021 Argentina 0.9 2022 Brazil Chile 3.1 4.6 2.7 2.4 2023 2024 2025 Colombia Mexico 0.7 0.7 3.8 2.1 2.0 7.0 5.0 11.2 Panama 9.8 5.1 6.6 21.8 $24.7 4.6 $19.6 5.1 16.2 2019 $28.5 4.5 8.4 1.5 2.0 2.7 2.0 1.1 1.7 24.2 $30.2 10.6 3.6 3.9 1.2 $5.8 1.8 4.7 1.1 6.3 2.4 3.0 4.0 10.4 0.6 $19.4 14.5 0.6 0.6 7.8 $18.7 2.9 3.5 3.6 2.9 6.7 2 5.0 2.6 1.6 2026 Peru Others 2027 0.5 1.3 2028-2035 15.5 16.6 2036-2045 2046+ 1.3 1.2 13
45 days
Liability Management: Liquidity increase, duration & debt cost 1400 Initial amortization calendar 4.875% 1200 1000 4.42% 5.50% 800 5.15% 600 6.625% 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045 Tender: USD 493 MM of the 2021 bond and USD 257 MM of the 2023 bond New issuance for USD 1,000 MM to 10 years: book orders 4x the target amount, reaching one of the lowest interest rates in Cencosud s history (USD + 4.419% o T + 210bps) 1400 Final amortization calendar 1200 1000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2045