Corporate Presentation. October 2016

Transcription

1 Corporate Presentation October 2016

2 Corporate Presentation The Company 2 Index The Company Strategy Opportunities by Country Financials

3 Corporate Presentation The Company 3 Cencosud in the Region 245 Supermakets 35 Home Improvement 78 Department Store 25 Shopping Centers JV Scotiabank 283 Supermarkets 51 Home Improvement 22 Shopping Centers Financial Services 211 Supermarkets Atacarejo format 3 different regions JV Bradesco 89 Supermarkets 9 Department Stores 4 Shopping Centers Financial Services 102 Supermarkets 10 Home Improvement 2 Shopping Centers JV Colpatria Since 1978 Since 1982 Since 2007 Since 2008 Since 2012

4 Corporate Presentation The Company 4 Regional Presence / Market Share 1 3º SUPERMARKETS 2º HOME IMPROVEMENT 4 º SUPERMARKETS NORDESTE (#2) MINAS GERAIS (#1) RIO DE JANEIRO (#3) Employees 1 st SUPERMARKETS 4 th DEPARTMENT STORES 220 MM Clients 60 MM Tickets Monthly 2 º SUPERMARKETS 2 º HOME IMPROVEMENT 2 º SHOPPING CENTERS 2 º DEPARTMENT STORES 2 º SUPERMARKETS 1 º HOME IMPROVEMENT 2 º SHOPPING CENTERS 15 Brands 1. As of june 30 th, 2016

5 Corporate Presentation The Company 5 Relevant brand portfolio with high consumer awareness 930 Supermarkets 96 Home Improvement 53 Shopping Center Brands focused on high and medium/low segments 87 Department Stores

6 Corporate Presentation The Company 6 Breakdown by Country: Revenues LTM 1 Andean Region Atlantic Coast 9.5% 8.3% 6,424 USD MM 2,361 USD MM 39.7% 1,545 USD MM 1,341 USD MM 4,526 USD MM 14.6% USD 16,197 MM Chile Argentina Brasil Perú Colombia 1. Exchange Rates: June, 2016 (CLP/USD = 661,4) 27.9%

7 Corporate Presentation The Company 7 Breakdown by Country: Adjusted EBITDA 1 LTM 2 Andean Region Atlantic Coast 4.6% 662 USD MM 26 USD MM 10.1% 125 USD MM 56 USD MM 362 USD MM 2.1% USD 1,231 MM Chile Argentina Brasil Perú Colombia 29.4% 53.8% 1. Adjusted EBITDA: Corresponds to EBITDA +/- Exchange Variations +/- Asset Revaluation +/- Result of Indexed Units. 2. Exchange Rates: June, 2016 (CLP/USD = 661,4)

8 Corporate Presentation The Company 8 Breakdown by Business: Revenues LTM 1 11,748 USD MM 10.2% 1.6% 2.3% Supermercados Supermarkets 2,134 USD MM Mejoramiento Home Improvement del Hogar 1,651 USD MM 13.2% USD MM Tiendas Department por Departamento Stores 26 USD MM Servicios Financial Financieros Services 362 USD MM 72.5% Centros Shopping Comerciales Centers 1. Exchange Rates: June, 2016 (CLP/USD = 661,4) 1. Shopping Centers figure only reflect contribution by third parties

9 Corporate Presentation The Company 9 Breakdown by Region: Adjusted EBITDA LTM USD MM 21.1% 51.0% Supermercados Supermarkets 193 USD MM 82 USD MM 7.7% USD MM Mejoramiento Home Improvement del Hogar Tiendas Department por Departamento Stores 105 USD MM 6.0% Servicios Financial Financieros Services 288 USD MM 14.1% Centros Shopping Comerciales Centers 1. Exchange Rates: June, 2016 (CLP/USD = 661,4) 1. Shopping Centers figure only reflect contribution by third parties

10 Corporate Presentation The Company 10 A story of sustained regional growth LTM 2T16 1. Values using Exchange Rates at the end of each period

11 Corporate Presentation The Company 11 Growth reflected in the size of our operations Jun 2010 Jun 2016 / Thousands M 2 Surface +77% +70% +19% +77% 1,136 2, Shopping Center 1 Supermarkets Home Improvement Department Stores 1. Total M 2 in shopping centers includes leases to related companies

12 Corporate Presentation Focos Estratégicos 12 Index The Company Strategy Opportunities by Country Financials

13 Corporate Presentation Strategy 13 Guidance and Investment Plan Organic Growth Plan For the period investment contemplates US$ million, to be 18% financed mainly by the generation of own resources 22% 60% Distribution by type of investment Organic Growth and Renovation Technology, Logistics & Omnicanal Maintenance & Current Capex Working Spotlights 1. Cost Efficiency and Profitability 2. Omni-quality 3. Financial Strengthening 4. Shopping Centers IPO 5. Non-strategic assets divesting

14 Corporate Presentation Strategy 14 Strategic Pillars 1.Clients Internal Client Happiness at Work and Productivity Cencosud ADN We define 6 key competences that build Culture 1. Costumer - Centered 2. Individual talents at the service of the Team 3. Permanent evolution and challenges 4. Strong culture focused on People 5. Owner Mentality 6. Accountability Consumer From transaction to emotion 1. Promises generation 2. Focus on the experience as a central axis 3. Authority in relevant / available categories 4. Check out speed 5. Speed and impeccability in post sale service 6. CRM: knowledge and fidelization

15 Corporate Presentation Strategy 15 Strategic Pillars 2.Trends 1. Sustainability & Entry to DJSI 2. Healthy Life Buy online and we deliver it Buy in the Store and we deliver it 3. Omnichannel Strategy Development 4. Fidelity & Datamining 5. Mobility Buy online and pick up with your car Buy with your phone and we deliver it Buy online and pick it up in the nearest locker Buy online and pick up them from your closest Jumbo

16 Corporate Presentation Strategy 16 Corporate Strategy Plan 1. Review of the route and role of each business unit within the portfolio 2. Ensure capital allocation alignment 3. Same methodology for the entire organization Productivity and Efficiency 1. Review of structures and headcount 2. Non-core assets and landbank divestiture 3. Inventory health (Aging) 4. Energy Efficiency 5. Organic growth 6. SG&A growing below income 7. Centralization of productive processes 8. Technology at the service of stores and costumers Program for Stores with Negative EBITDA Own Brands Regional Trade Synergies Strategic Pillars 3.Profitability

17 Corporate Presentation Opportunities by Country 17 Index The Company Strategy Opportunities by Country Financials

18 Corporate Presentation Opportunities by Country 18 Opportunities by Country - Argentina We expect a change in the economy trend for 2017: Strong project pipeline, in our own land Closeness format at Jumbo The market is increasing its formality level The market is opening to imports We are leaders in e-commerce Consolidated team / strong local player

19 Corporate Presentation Opportunities by Country 19 Opportunities by Country - Brazil End of recession, growth from 2018 Renowned brands, with history and prestige in their markets We have a successful Atacarejo format, with positive growth We have built a local team of excellent level, acknowledged by the market Transformational initiatives in supply chain, pricing, selection and efficiency Commercial synergies, improving margin and competitiveness

20 Corporate Presentation Opportunities by Country 20 Opportunities by Country -Chile A country with a solid economy, growing below its potential Key openings for our main brands Landbank of 2.7 mm sqm Full multiformat, 6 retail flags + shopping + financial services Strong growth of the financial business together with scotiabank Leaders in e-commerce food, strong growth in non-food Costanera project expansion

21 Corporate Presentation Opportunities by Country 21 Opportunities by Country - Perú Political change, confidence in the country s economy Higher growth and lower inflation expectations Young country: 2/3 of the population in full production, savings and investment capacity Low penetration of the modern channel Potential for a 3 times growth of Paris share Excellent land bank Wong with an unbeatable positioning in the high segment The best loyalty program - bonus Strong development of own brand

22 Corporate Presentation Opportunities by Country 22 Opportunities by Country - Colombia Consolidated team with experience in the local market We grow more than our main competitors Omnichannel, e-commerce and telephone sales development Profitability opportunity for our current assets Our brands are consolidating Great development potential together with landbak and unrivalled locations Easy format showing 2-digit growth for the last 2 quarters

23 Corporate Presentation Financials 23 Index The Company Strategy Oportunities by Country Financials

24 Corporate Presentation Financials 24 Key Figures Revenues (USD Bn) 1 Adj. EBITDA (USD Mn) ,101 1,115 1,035 1, LTM Jun LTM Jun Adj. EBITDA (% Revenues) 1 7.1% 7.2% 6.9% 7.6% 6.2% Adj. EBITDA / M LTM Jun LTM Jun 1. Figures translated into USD at end of period exchange rate as of June 2016 (CLP/USD 661.4)

25 Corporate Presentation Financials 25 Financial Ratios Debt / Adj.EBITDA 1 Debt to Equity 4.6x 3.4x 3.7x 3.3x 3.2x 0.89x 0.58x 0.60x 0.58x 0.65x LTM Jun 3.73x Interest Coverage Ratio 3.02x 2.90x 2.84x 3.27x LTM Jun 1.86x Total Liabilities / Equity 1.32x 1.43x 1.51x 1.44x LTM Jun 1. Figures translated into USD at end of period exchange rate as of June 2016 (CLP/USD 661.4) LTM Jun

26 Corporate Presentation Financials 26 Financial Discipline: Commitment to investment grade I Decreasing Debt/ Adj. EBITDA LTM Jun 2016 LTM Jun II Non-core assets divestiture Divestiture of Pharmacies in Colombia and Perú Divestiture (minority interest) of Marina Arauco Mall, Viña del Mar Contract renegotiation of Colpatria, Colombia Divestiture of improductive, non strategic land Gas stations in Colombia Executed Executed Executed In progress In progress III Stable Outlook Humphrey AA- Local Ratings Feller Rate AA- International Ratings Fitch Ratings BBB - Moody s Baa3 1. Excludes banking operarations Since 2014 Adj. EBITDA excludes Fair Value of Derivatives effect

27 Corporate Presentation Financials 27 Main features of Debt Breakdown by Currency 2 Breakdown by type of issue Breakdown by Interest Rate Debt USD 4,611 MM 1 USD 14% Others LatAm 8% CLP & UF 78% Banks 18% Local Bond 14% Others 4% Int. Bond 64% Variable 31% Fixed 69% Amortization Schedule ( USD Mn) Structured Debt 1. As of June 30th, USD exposure is net of cash dollar and is calculated after Cross Currency Swaps Non Structured

28 Corporate Presentation October 2016