CENCOSUD CORPORATE PRESENTATION - First Quarter 2021
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CENCOSUD
CORPORATE PRESENTATION
First Quarter 2021
01. About Cencosud
Well Established Leading Retailer in +6,1 million m2 of
South America
landbank fuel future growth
+50 years of history across the region
+115K
SUPERMARKETS
HOME
IMPROVEMENT
DEPARTMENT
STORES
SHOPPING
CENTERS
FINANCIAL
SERVICES
employees
• 1,058 Retail stores CENCOSUD (IPO 2004)
• 3.32 million m2 selling space US$ 6.1 BN Market Cap at March 31
• 67 shopping centres FREE FLOAT: 46.7%
Average trading volume 1Q21: US$ 9.9 million
• 831 thousand m2 GLA to third
CENCOSUD SHOPPING (IPO 2019)
parties in Shopping Centers US$ 3.5 BN Market Cap at March 31
FREE FLOAT: 27.7%
Supermarkets Cencosud’s DNA Average trading volume 1Q21: US$ 2.2 million
2
02. Cencosud’s History…
1963 1970 1982 1988 1993
Opens 1st Opens Jumbo Store Opens Mall Unicenter Opens Alto Las Condes
Opens Jumbo
Supermarket in Chile in Argentina in Argentina Shopping Center & 1st Easy
Kennedy in Chile
store in Chile
2005 2004 2003 2002
Acquires 3 Supermarket Launches FS in Chile.
Acquires DS (Paris) Opens 2 Shopping Centers in Acquires 2 HI chains in
chains in Argentina and Chile.
Chile. Acquires SM Santa Isabel Chile and Argentina
Opens Santiago Stock
Exchange In Chile
3
03. …Cencosud’s History
2007 2008 2010 2012
Acquires 4 SM chains in the Starts FS Operations in Acquires 2 Acquires SM chain in Brazil. Opens
region and 2 DS chains. JV in Argentina. Acquires HI in Supermarket chains Costanera Center Shopping Center.
Colombia for Easy development Argentina in Brazil Buys SM in Colombia
2021 2020 2019 2018 2014
Launches new Closes Paris in Peru. IPO of Cencosud JV of FS JV of FS
Supermarket brand Paris absorbs Johnson in Chile. Shopping in Peru In Chile
Spid35 Cornershop Strategic Alliance.
4
04. 2021 Highlights
E-commerce Achievements
January
• Launch new convenience format for Supermarkets,
Spid35, which includes delivery Service of less than 35 Capex
minutes, its own APP, in Chile, and the opening of
physical stores and Dark/Gray Store throughout the
First Quarter
region. • Advances in remodeling of
• Santa Isabel launches new website, incorporating 101 stores and Shopping Centers in
stores for dispatch throughout Chile and offering a the region.
better customer experience. • Transformation of stores in
• Jumbo Prime subscription is gaining strength with Cash & Carry format (13 in
more than 30,000 subscribers. Peru and 8 in Brazil).
May • Opening of 8 Spid35 stores (Chile and Colombia)
and 3 Dark Stores (Argentina and Brazil) to
• Launch of the Paris APP with free delivery, in 24 hours, strengthen the online channel.
on purchases over CLP 19,9901, online purchase
tracking, personalized discounts and the incorporation
of more than 120 pick-up points (Paris, Jumbo, Santa
Isabel and Easy).
1. Promotions defined by Cencosud for certain periods of time. 5
05. 2021 ESG Highlights
Shareholders’ Meeting
Sale of Vegetables with local producers
April
Jumbo supports local producers by promoting the sale of
locally grown vegetables. The Chile Supermarkets team A dividend of CLP 28 per share was approved,
together with the Instituto de Desarrollo Agropecuario equivalent to 79.19% of the distributable earnings.
(Indap) continues to support small entrepreneurs by A share repurchase program, not to exceed 5%, and
marketing their products at Jumbo’s stores. The association funded with internally generated cash was
with Indap is in line with the strategy of supporting the approved.
development of various Supermarket suppliers at the
country level. Such shares shall be repurchased within
a maximum period of 24 months,
Mutual Seal COVID-19 otherwise the capital will be decreased.
The Home Improvement, Supermarket Jumbo and Shopping Center
businesses have received the COVID-19 approval seal in 100% of their
facilities. The teams, along with all employees, have implemented all the
hygiene and safety measures defined by the health authority so that all
facilities are safe and clean. The focus will always be to protect the health of
employees, customers, tenants and suppliers.
6
06. Value Distribution
GENERATED ECONOMIC VALUE DISTRIBUTED ECONOMIC VALUE
3,827,907 -8,714,338
Suppliers Payment
Tenant Sales Shopping Center
-1,146,322
10,066,777
Sales Generated HIGHLIGHTS
Salaries and benefits to our team
LTM 1Q 2021
Distribution of value -189,816
Creditors Payment
in Cencosud
25,445
Financial Income
(CLP million)
-91,360
Dividends Payment
4,434
Income from participation in -73,685
other companies State Payments
507. Why Invest in Cencosud
Established presence in largest
Healthy balance sheet economies of the region
supports growth opportunities
Organic growth opportunities in
fast developing countries
supported by own landbank
MAIN CORE ETHICS &
Strong Corporate Governance SUSTAINABLE VALUES
Further development of the
omnichannel strategy
Focus on productivity &
efficiency initiatives
808. Financial Contribution by Country1
Revenues LTM 1Q21 Adjusted EBITDA LTM 1Q212
US$13,088 million US$1,411 million
Adjusted EBITDA Margin: 10.8%
8%
5%
10%
8%
12% 62%
53% 9%
17% 16%
1 For calculation details please go to page 17 & 18.
2 Does not include One Off of the period.
244 SUPERMARKETS 282 SUPERMARKETS 200 SUPERMARKETS 92 SUPERMARKETS 93 SUPERMARKETS
37 HOME IMPROVEMENT 51 HOME IMPROVEMENT F.S: JV WITH BRADESCO 6 SHOPPING CENTERS 10 HOME IMPROVEMENT
49 DEPARTMENT STORES 22 SHOPPING CENTERS 4 SHOPPING CENTERS
F.S: JV WITH SCOTIABANK
35 SHOPPING CENTERS FINANCIAL SERVICES F.S: JV WITH SCOTIABANK
F.S: JV WITH SCOTIABANK
909. Financial Contribution by Business Units1
Revenues LTM 1Q21 Adjusted EBITDA LTM 1Q212
US$13,088 million US$1,411 million
Adjusted EBITDA Margin: 10.8%
10% 1% 5% US$ 75 million
US$1,261 million
US$119 million US$ 15 million 1%
62.2% mgn
0.9% mgn
13%
US$1,781 million 21%
US$ 315 million
1% 17.6% mgn
75% 3%
US$ 117 million 70%
US$ 9,807 million
US$ 1.024 million
US$ 43 million
10.4% mgn
35.6% mgn
1 For calculation details please go to page 17 & 18
2 Does not include One Off of the period
PORTFOLIO OF RECOGNIZABLE BRANDS
1010. Healthy Financial Structure
Relevant News Debt by Currency (after CCS)
● Investment Grade since 2011:
USD
● Fitch Ratings: BBB- (stable); USD
0%
4%
● Moody’s: Baa3 (stable).
CLP +
● Average anual amortization for the next 4 years of US$40 million; UF
96%
● Cash & Equivalents as of March 31st of US$1,757 million, cash
(US$ 900 million). CLP + UF
100%
Mar 21 Mar 20
Gross Leverage and financial evolution1 Debt amortization schedule (US$ million)
5.9 6.0 6.0 6.1 5.9 1,017
4.6 4.5
Gross
5.1 5.0 5.0 5.1 576 595
5.5 Financial
Debt 451
3.4 3.2
GFD/Adjuste 226 204
d EBITDA 123
51 55 20 36 53 15
2016
2015
2017
2018
2019
2020
1Q21
LTM
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2041 2044 2045
1 Does not include One Off of the period 1111. Omnichannel Strategy
Company’s Strategy Shopping Service • Marketplace launch;
• Improve unique product’s offer;
• Develop hyper personalization tools;
Customer Experience • Provide money-back guarantee;
• Take advantage of the economics of scale;
• Invest in techonological developments;
Profitability • Deepen the ability to generate, handle and process data.
E-commerce Penetration1 Business Supermarket Department Store Home Improvement
1Q21 8.9% 45.6% 7.6%
1Q20 2.2% 21.9% 4.5%
Var 21/20 (bps) 678 2,376 311
Online Sales1 (CLP million) 1Q21 161,393,880 102,338,111 27,333,270
1Q20 26,106,800 36,521,782 12,917,726
Var 21/20 (%) 518.2% 180.2% 111.6%
Var 21/20 (%) LC 557.9% 180.2% 136.7%
1 Includes Cornershop. LC Means Local Currency. 1212. Productivity and Efficiency
Retail Services Model Goals
SHARED SERVICES CENTER Efficiency and Continuous Improvement
Model created to optimize Retail processes Improve processing times and costs by centralizing
duplicated/split tasks between areas.
PROCESS IMPROVEMENT Closeness to the Business
Provide a comprehensive service in processes with
high transactional and operational load.
RPA monitoring
Manage runs (schedule) and integrity of automated
EFFICIENCY
processes.
INTEGRATION
Digital Retail Services
Assign resources to higher value tasks, optimize
business needs and follow up.
Achievements
AUTOMATIONOF
PROCESSES
US$ 7.6 million reduction of operating cost
1313. Productivity and Efficiency
Big Data Analytics Regional Procurement & Private Label Team
The Big Data Analytics Management is developing several The Company created a regional purchasing team with the
projects: purpose of having :
• Creation of the Jumbo Prime Subscription model; • Greater availability of products out of season; and
• Initiatives that improve the customer experience based • Cost savings of 16% with a reduction of US$ 11 million per
on personalized recommendations; month (38% of the savings is permanent);
• Early prediction of breaks to improve the digital Cencosud is a pioneer in Latam for creating centralized teams
experience; for the development and purchase of own brand products,
Private Label penetration in the current quarter of 2021 was :
• Price Optimization Projects for inventory management
and promoting commercial divisions; and • 23.5% Department Stores
• Operational Efficiency Projects based on advanced • 8.6% Supermarket
analytics algorithms. • 18.5% Home Improvement
GLA Optimization:
GLA optimization with new openings utilizing current landbanks and efficiencies with existing GLA
• Format change in Supermarket to Cash & Carry (13 in Peru) and to Atacarejo (8 in Brazil);
• Optimization of Metro Hypermarkets GLA by adding Home Improvement Stores (Colombia) and Spid35 stores opening
(throughout the region -6 in Colombia and 2 in Chile). 1414. Ethics and Sustainability
Key components of our code of ethics Pillars of our sustainable strategy
Corporate Governance
Aspects of corporate governance, compliance, ethical
management, risk management and information
security
Relationship with Relationship with
customers Relationship with suppliers
employees
Product
Aspects associated with product offering
and supply chain
Information Care Asset Protection
Planet
Environmental aspects of our facilities
Code of Ethics revised annually
Board of Directors and Employees trained in issues related to
ethics. More than 115,000 people trained in ethics and
sustainability issues People
Code of Ethics and Conduct signed by all employees Social aspects associated with our employees,
Independent hotline for Reporting mis-behavior customers and communities in which our facilities
are located
1515. Corporate Governance
Board of Directors Corporate Structure – by Country
Horst Chief Executive Officer
Paulmann Matías Videla
Heike Paulmann SM Chile
Peter Paulmann Cristian Siegmund
Interim President
Felipe Larrain Julio Moura Peru Manager Argentina Manager Dept. Store Chile
Alfredo Mastrokalos Diego Marcantonio Ricardo Bennett
Mario Valcarce Jorge Pérez Alati
Colombia Manager Brazil Manager Home Imp. Chile
Marta Henao Sebastian Los Felipe Longo
Alejandro Pérez Stefan Krause
Cencosud Shopping
Independent Board of Director’s Committee New organizational structure with the purpose of: Rodrigo Larrain
Members • Felipe Larrain • Generating synergies between business units;
• Mario Valcarce • Streamline decision making;
• Alejandro Perez • Benefit from local knowledge
1616. Calculation Details
For this presentation the following exchange rates, calculations and details were
considered:
• Market cap calculated as of March 31, 2021 using CLP 1,540.10 share closing
price and CLP 721.82 closing exchange rate per US$;
• The average volume traded: figures as of March 2021 using the share closing
price and the average exchange rate of CLP 724.18 per US$;
• Adjusted EBITDA represents EBITDA plus exchange differences and results by
adjustment units, less the revaluation of assets, also does not include One Off
of the period;
• Revenues and Adjusted EBITDA converted to US$ at average quarterly
exchange rate of CLP 822.97, CLP 780.93, CLP 761.96 and CLP 724.18 per US$
for each quarter, respectively;
• Revenues and Adjusted EBITDA include IFRS16;
1717. Calculation Details
• Revenues and Adjusted EBITDA graph by country excludes the “others
segment”, which contributed US$ 4 million in revenues and a loss of US$ 62
million in Adjusted EBITDA;
• Revenues and Adjusted EBITDA exclude the adjustment for hyperinflation in
Argentina (IAS29). Including the effect, revenues for LTM March 2021
reached US$ 12,783 million and Adjusted EBITDA US$ 1,355 million using
quarterly average exchange rate of CLP 822.97, CLP 780.93, CLP 761.96 and
CLP 724.18 per US$ for each quarter, respectively. Argentina represents
14.8% of total revenues and 12.1% of total Adjusted EBITDA;
• Debt denominated in dollars, calculated at the closing exchange rate as of
March 31, 2021. Debt includes lease liabilities by adoption of the IFRS16.
Additionally, it includes the effect of hyperinflation in Argentina as per the
IAS29. The amortization schedule is presented net of gains/losses obtained
by Comex derivatives, overdrafts and debt (excludes futures) and One Off of
the period;
• Net debt presented after cross currency swaps; and
• SM stands for Supermarket, FS Financial Services, HI Home Improvement and
DS Department Stores, Arg stands for Argentina and LC refers to Local
Currency.
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