CENCOSUD DAY

Chile 2014 Corporate Retail Management

09/24/2014

Our History: Cencosud Retail

Our Present: Our Formats

Our Future: Challenging Retail in the Region

Agenda

History of Strong Growth

In recent years, the company has experienced explosive growth through acquisitions and new store openings (a flexible, agile, aggressive and risk-taking company).

US$ 4.9 billion over the past 6 years

Cencosud has made

acquisitions totaling more than

Opening of first supermarket

Consolidation in Chile

IPO

Acceleration of international expansion

Cencosud in the Past Several Years

Countries Retail Format Brands # of Stores Mt2 (in millions) Revenue (US$ billions) EBITDA (US$ billions)

Figures correspond to retail formats only

Year 2002 Year 2013

2 2 54 0.5 1.2 0.13

x 2.5 x 7.5 x 20 x 7 x 15 x 12

5 15 1,094 3.5 19.7 1.5

We are working to provide strong support to continue this growth

Developing systems, policies and procedures.

Transferring and standardizing practices.

Leveraging the synergies generated by our scale.

Investing in human capital and high-performance teams.

THROUGH OUR EXPANSION PLANS, WE ARE MOVING FORWARD WITH SPEED AND ACCURACY IN:

Agenda

Our History: Cencosud Retail

Our Present: Our Formats

Our Future: Challenging Retail in the Region

Our Retail Formats

5 countries

922 stores

2.3 million mts2

2,549 avg. mt2

14.6 billion revenue

3 countries

89 stores

757,000 mts2

8,506 avg. mt2

2.2 billion revenue

Supermarkets Home

Improvement Department

Stores

2 countries

83 stores

404,000 mts2

4,869 avg. mt2

1.8 billion revenue

Two differentiated offerings throughout the region

Supermarkets: Format Strategy

Formats

Chains

Sizes

Value Proposition

Service Convenience

Hyper (+ Super) Super (+ Hyper)

Greatest selection Best experience #1 in perishables

Price Proximity

Speed

Quality: A non-negotiable commitment – Cencosud DNA

Supermarkets - Service

High-value brands known for their quality and service Leading brands in innovation, product offering and customer experience, such as:

Fruits and vegetables

Fish

Shellfish

We utilize a management model based on commitments to our customers.

We aspire to be the brand that is most loved and valued by consumers in each market.

Shifting to an omnichannel experience.

Deepening our leadership in product offering: organic and functional foods.

Fully committed to developing the Healthy Eating program by providing education on healthy eating in the region.

Imported Products

Bakery

Bread

Result: High revenue per mt2 and highly profitable model.

We are leaders of the service model, we know it and do it very well

Supermarkets - Service

A model that we will continue supporting and growing.

OUR BAKERY COMMITMENT

OUR WINE COMMITMENT

The healthiest bread in Chile

Contains 25% less salt, 0% trans fat and 0% cholesterol. Recognized by the Global Alliance Against Obesity for its contribution to the prevention of cardiovascular illnesses.

The greatest variety of wine

You can always find at least 800 different wines

OUR CHEESE COMMITMENT

If we don’t have it, we will get it

If you find a cheese at a competitor for which Jumbo does not have an alternative or substitute, we will get it within 24 hours

Supermarkets - Convenience

Local brands with a history linked to their market and people, known for their proximity and convenience

Focusing on low prices with the right assortment.

Deepening self-service models.

Increasing profitability through lower operating costs.

Leveraging the low penetration of modern retail and the increase of middle class segments for growth.

Enhancing our logistics and supply chain productivity.

Simplifying our store operations.

Reclustering permanent shops for optimal assortment.

All this without ever sacrificing the quality of our products

Supermarkets - Convenience

Result:

- Chains with a close, active and convenient offering … “they know me, they understand

me”

Higher level of efficiency and competitiveness for the consumer

Focus on Supermarkets in Brazil

New governance for the consolidation stage Our operations in Brazil are regarded as being in 3 different countries We have appointed a new CEO and a director for each operation: Gbarbosa, Bretas and Prezunic Each operation > $ 1 billion Flexibility and speed for each brand, coordinating and integrating central processes

Challenges

Consolidate operation of new governance

Profitable organic growth

Stabilize 100% of operations that have had system changes

For each chain: positive SSS in Q4 2014 and positive EBITDA for FY 2014

Accelerate unique private label brands

Help associates feel proud to belong to Cencosud

Home Improvement

CHILE

Focused on strengthening the purchase experience (service and product availability).

We will take advantage of wholesale business opportunities given the market situation.

EASY: Brand with a unique business model in all the countries where we operate.

Advancing in the development of an omnichannel experience.

3 business segments (retail, professional and wholesale) with high growth potential.

ARGENTINA

Market leading brand experienced in handling the situation.

COLOMBIA:

Tapping into the growth potential in locations with supermarkets.

In Summary…

GROWTH

Supermarkets – Service (Pacific Region)

París Peru

Easy Colombia

Digital Business

Private Labels

STRENGTHENING OF

Governance in Brazil

Colombia Brand Positioning: Jumbo and Metro

Supermarket Offering – Convenience

Logistics Capabilities

Loyalty Program

Johnson Chile Brazil Supermarkets: Prezunic and Bretas Centralized Purchasing in Commodities and Private

Label Brands Negotiation and Planning with Multinational Companies

PROFITABILITY

Opportunity:

Agenda

Our History: Cencosud Retail

Our Present: Our Formats

Our Future: Challenging Retail in the Region

Latin America, the right region Highest GDP increase in the last 30 years.

Significant reduction in poverty.

More than 80 million new consumers.

PPP increased 3.6 times.

Life expectancy extended by 6 years.

65% of our business is in food.

In this context, where the world is always changing…

OUR REGION

ACCELERATES

CHANGE Brands have the power

One shopping platform

Focusing on goods

“I need things”

Blind confidence

Consumers have the power

Multiple shopping platforms

Focusing on the social good

“I want an experience”

Distrust of institutions

AND THE

CONSUMER

TOO

Excess information but scarce time

Empowered and demanding (with voice and vote)

Hyperconnected 24/7 (digital natives)

Balanced life

Natural and healthy diet

BRANDS

SHOULD CHANGE

THEIR PERSPECTIVE

STRATEGIC

PILLARS

FOR THIS

NEW SCENARIO

10

Sustainable

Emotional

Fast and Innovative

Omnichannel

Memorable Experience

People as the Core of the Organization

The Team Above All

Customer Intelligence

Productivity and Efficiency

World Class Latam Player

1

2

3

4

5

6

7

8

9

10

BR

AN

DS

O

RG

AN

IZA

TIO

N

SUSTAINABLE

BRANDS 1 CUSTOMERS ASSOCIATES SUPPLIERS COMMUNITY ENVIRONMENT

THE RESULT IS ECONOMIC VALUE

CUSTOMERS ASSOCIATES SUPPLIERS

SUSTAINABLE BRANDS 1

1

ENVIRONMENT COMMUNITY

SUSTAINABLE BRANDS

EMOTIONAL

BRANDS

ANCHORED TO A PHILOSOPHY THAT ALLOWS US

TO BUILD A BRAND WITH SUPERIOR STATURE

2

EMOTIONAL BRANDS 2

FAST AND

INNOVATIVE

BRANDS 3

FAST AND INNOVATIVE BRANDS

3

OMNICHANNEL ACCESS WHEN AND WHERE CUSTOMERS

WANT IT 4

• Updating and implementing new technology platforms • Strengthening business and IT teams • Changing and modernizing processes from Brick to Brick & Click

What are we working on?

Omnichannel Access - Supermarkets 4

Store/Cashier

Online

Store/Cashier

Delivery

Store/Cashier

Online

Customer

Standard

Customer

Standard

In Store

Online Food

Online Non-Food

Phone Sales

In Store

Online Food

Online Non-Food

Phone Sales

Payment

Product Purchase

Post-Sales

Online In Store

Mobile

Online Mobile

Store

Delivery

C&C Store

Store Store

WHERE ARE WE TODAY? WHERE WILL BE IN 12 MONTHS?

Online

•Updating and implementing new technology platforms

•Strengthening business and IT teams

•Changing and modernizing processes from Brick to Brick & Click

Omnichannel Access – Department Stores 4

Purchase

Payment

Web

In Store

Telephone

Delivery

Delivery Store

Store/Cashier

Online Web

Store

Call Center

Post-Sales

Social Networks

Online Mobile

Pick-Up Point

Store

Call Center

Social Networks

Delivery Store

Pick-Up in Store

Order Tracking

Store/Cashier

Online Web

Web

In Store

Telephone

Mobile Kiosk

MEMORABLE

EXPERIENCES AT EVERY POINT OF

CONTACT

5

“Store as a Stage”

33

MEMORABLE EXPERIENCES 5

Our stores are our stages, where every day we work on

surprising our customers.

PEOPLE

AS THE CORE OF THE

ORGANIZATION Strong culture with a great labor climate.

6

35

PEOPLE AS THE CORE OF THE ORGANIZATION 6

Gestión del Desempeño y Talento Skills Performance & Talent Management

Bu

sin

ess

Lead

ersh

ip

Org

aniz

atio

nal

&

Ass

oci

ate

Lead

ersh

ip

Tho

ugh

t Le

ader

ship

Res

ult

s

Respect

Beh

avio

ral S

kills

Goals / Results

THE IMPORTANCE OF THE

TEAM ABOVE ALL 7

THE TEAM ABOVE ALL

7

“I am very proud to belong to Cencosud. This opportunity is a dream come true. Thanks to Mr. Horst for recognition of all the years of work. For me, this is a family!” – CHILE

CUSTOMER INTELLIGENCE THROUGH IN-DEPTH KNOWLEDGE 8

CUSTOMER INTELLIGENCE 8

Customer/Data Analytics

Shopping Baskets Size, amount and frequency Shopping mission Preferences

Customer Segmentation Value and loyalty Price and promotions Lifecycle Share of wallet

Frequent buyer at Jumbo A. Las Condes

Family with small children

Low price sensitivity

Preferential customer

Electronics purchase at Paris.cl Landscape customer at Easy

Purchases in Umbrale & Umbrale Kids

ABC1 Infrequent buyer at Paris

36 years

Preference for organic fruits and vegetables

Healthy snacks

Decisions/Actions

The Best Loyalty Program #1 in Top of Mind

Customers > 8,000,000

Redemption > 80%

Share of purchases > 80%

Includes all formats

All payment types

CUSTOMER PROFILE

ASSORTMENT LAY OUT

PRICING

MASS MARKETING AND TARGETED PROMOTIONS

BRAND MANAGEMENT

STORE PLANNING

PRODUCTIVITY &

EFFICIENCY BE SEXY, KEEP FIT 9

PRODUCTIVITY & EFFICIENCY 9

Self-Service Scales

Self Checkout / Scanning

Production plants / Associate sales trends / Store standardization

Logistics and distribution projects / SAP implementation (ERP)

WMS

WORLD CLASS LATAM PLAYER CAPITALIZING ON GLOBAL OPPORTUNITIES 10

Velocidad e Innovación WORLD CLASS LATAM PLAYER, CAPITALIZING ON GLOBAL OPPORTUNITIES

10

Top 42 FMCG

Companies

Multi-Country Sourcing from the East

Clothing Decor/Bazaar Home

WORLD CLASS LATAM PLAYER, CAPITALIZING ON GLOBAL OPPORTUNITIES

Private Label

(2010)

Private Brand

(2013)

Mega Brand

(2016)

10

OUR DREAM

Always keeping our people at the core of the organization,

they put their talent to use in teams to grow with speed

and innovation. Our productivity and service DNA

distinguish us as we are:

Build sustainable brands that emotionally

connect with our customers, and by knowing our customers, seek to become their preference over time.

To achieve this, we are working hard to develop omnichannel

brands, where our stores are the stage, allowing us to

generate memorable experiences.

A WORLD CLASS LATAM PLAYER!

OUR MOMENT

INSPIRES US

LEADING ROLE

THIS IS

PROJECT WE WILL PLAY A

THE

Thank you!