Retail Financing Division

Cencosud Day

September 2014

Our Vision of Cencosud Retail Financing

To be recognized as the retail financing company that provides the best customer experience in Latin America, strategically supporting attainment of retail objectives and achieving high profitability, with a global perspective of Cencosud.

Vision

Brazil

Argentina Chile

Colombia

Peru • Supermarkets

• Department Stores

• Shopping Centers

• Retail Financing

• Supermarkets

• Home Improvement

• Department Stores

• Shopping Centers

• Retail Financing

• Supermarkets

• Home Improvement

• Shopping Centers

• Retail Financing

• Supermarkets

• Retail Financing

• Supermarkets

• Home Improvement

• Retail Financing

Retail Financing at Cencosud

... we have more than 300 million

potential customers

17MN

30 MN

41MN

199 MN

335 MN

Total

48 MN

... if we look at it by family

(No. of households)

96 MN

Total

11 MN

60 MN

12 MN

7 MN

5 MN

... we are currently only reaching 1 out of

every 17 of these households

10%

2%

39%

7%

6%

Total

6%

RETAIL BUSINESSES

Products that Customers Need:

• Food • Clothing • Housewares • Construction materials • Other

Other Customer Needs:

• Financing

• Insurance • Travel and Entertainment • Internet, Catalogs, etc.

Getting to Know the Customer:

• Customer Loyalty Program

• Segmentation

• Identification of new needs

Business Model

Maximizing the potential of the retail financing

business requires expanding the product portfolio…

Base offer Store charge card, for store use only

- Connection with customers - Access to Cencosud products - Deepening customer relationships

Evolution of Retail Financing

Evolution of the offer Store charge card, accepted at partner retailers Insurance Consumer loans / "Super" cash advances Credit cards (Visa/MasterCard) Store gift cards Cash advances

Comprehensive financial solution for our customers Retail banking Deposits and investments

1

2

3

We must expand our financial product offer…

Size of the Customer Portfolio

Base Offer Evolution of the Offer Comprehensive Financial Solution for our Customers

Customers seek suppliers with a wider offer of financial products

Customers seek comfort and simplicity in financial products

"One-stop shopping"

Time

1

2

3

Time

Base Offer Evolution of the Offer Comprehensive Financial Solution

Store charge card, for store use only

Cash advances Insurance Store charge card, can be used at partner retailers Consumer loans Credit cards (Visa/MasterCard) Gift cards

Retail banking Deposits and investments

Customers seek suppliers with a wider offer of financial products Customer seeks comfort

and simplicity "One-stop shopping"

Products:

Evolution of the Retail Financing Business

Our business is at a different stage in each country; optimizing it means pushing it to the next level.

Retail Financing Today

Cards associated with each of the retailers / Visa and MasterCard

Store charge card

/ Visa and MasterCard

Store charge

card

/ Visa (Br)

JV with

Bradesco

.

Store Charge

Card

/ Visa

JV with

Colpatria

Cencosud-owned

Insurance Brokerage

Banco Paris

CREDIT/ CHARGE CARDS

BANKING

INSURANCE

Store charge

card / Accepted at Cencosud

retailers

Banco Cencosud

Third-party (SOAT)

Insurance Distributor

Insurance Distributor

Insurance Distributor

Purchases and

payment in our retail locations

Purchases at partner

companies

Access to money

Accepted at our retailers: Jumbo,

Sisa, Easy, Johnson and Paris

Cash advances (3-36 months) and "Super"

cash advances (12-48 months) at retail

checkouts and ATMs

Customer loyalty

program

Cencosud Points Program

Redeemable in-store. Every purchase earns

points.

Gas stations, pharmacies,

telecommunications, health, education,

entertainment, travel, etc.

Accepted at: Wong, Paris and

Metro

Partnered with Visa and MasterCard

Cash advances and "Super" cash advances at

retail checkouts

Bonus program. Redeemable at

select locations.

Accepted at our retailers: Jumbo, Easy, VEA, Disco and Blainstein

LAN Airlines, entertainment partnered with

MasterCard

Jumbo Program

Accepted at: GBarbosa and

Bretas

Cash advances (only at Bretas)

No customer loyalty program

NO

Accepted at: Jumbo, Metro

and Easy

Partnered with Visa

ATM-only cash advances for co-branded

cards

Colpatria Points

Program

Partnered with Visa (Bretas)

Credit Card Features

Products

Payment protection

Unemployment

Theft or fraud

Accidents (health)

Auto

Home

Extended warranty

Sales Channels Service Centers

Account Statements Telemarketing

Stands Retail Stores

Insurance Features

State-of-the-art Technology: - Authorizations - Up time - Scoring

Low-cost Processes

Critical Mass

Business Analysis

Segmen-

tation & Models

Credit Discipline

Optimum Service

Quality

First-rate Human Resources

Business Characteristics

Insurance Brokerage Corredora de Seguros París

Low Cost

Critical Mass

Efficient Channels

Business Analysis

Segmen-

tation

Prestigious Insurance Company

Reasonable Prices

Credit and Charge Cards

Insurance

Model of Business Processes

Function

Prospect Management

Product Management

Order Processing

Attracting Customers

Card Sales

Sales Campaign

Management

Sales

360-degree View of Customer

Historic Record of Contacts

Status Inquiry

Operations Support Processes

Handling Inquiries

Suggestions and Complaints

Requests to Close Accounts

Theft/Loss Reports

Charge Disputes

Updating Data

Customer Service

Prevention of Default Early Default Management

Recovery

Agency Management

Mgt. of Default Segments

Mgt. of Payment Promises

Mgt. of Collections Campaigns

Renegotiations

Collections Management

One-by-one Application Entry

Closing Accounts

Adjustments

Blocking/Unblocking

Debt Refinancing

Updating Customer Information

Updating Product Information

Updating Group Information

Reconciliation of Transactions

Sending and Receiving Bundles

Document Recovery

Operations

Processing Exceptions

Report Follow-up

Complaint Follow-up

Complaints Escalated from the

Branch

Claims Management

Solutions/

Exceptional Modifications

Consumer Protection

Analysis of Disputes

Complaint Management

Charges

Payments Renegotiations

Transactions

Channels Function

Front Office

Custo

mer

Business Processes Back Office

CRM ABM for Customers

Customer Contact

Data Management

Campaign Management

Historical Data Management

CUSTOMER PROCESSES

PRODUCT PROCESSES RISK PROCESSES

SUPPORT PROCESSES

Transaction

Management

(Charges, Payments

and Adjustments)

Payments to Customers

Payments to Businesses

Issuance of Summaries

Accounting Information

Financial Trusts

Updating

Process

Embossing

Cards

Policy Management

Decision Engine (Bureau Integration)

Quota and Limit Management

Predictive Models

Fraud Prevention

Case Monitoring

Identity Verification

Segmentation

Marketing Actions

Reporting

Campaign Analysis

Regulatory Bodies

Central Bank/Tax Info.

Auditing Processes

Accounting Records

Controlling and Budget

Payments to Businesses

Daily Balances

Delay and Default (days)

Accounting Interfaces

Reconciliation of

Transactions

Define Products' Parameters of

Operation

Maintenance

Admission and Scoring

Business Intelligence Administration/Accounting Processor Integration

In 2012, we launched the Cencosud Card –

a single card for the entire region.

A card with a value proposition that is

relevant, consistent and has multi-segment

appeal, while transmitting brand values.

A card that allows us to create a brand

experience that will produce a world of

enjoyment in the world of Cencosud.

It will also be the brand ambassador for the

entire region.

A Global Brand

One card for all our retailers

With the Values and Personality that Identify Us

+ + Energized and Cheerful

In touch and Empathetic Genuine and Clear

Cheerful and full of life. Active and

dynamic. Fun! Constantly doing

things and seeking benefits for

others.

Understanding, kind and friendly. Supports and

accompanies every step of the way. A

person who is always there when needed.

It is what it seems. Natural, spontaneous and current, in tune with

the times. Speaks directly, clearly and openly. Has a distinctive spirit, a

vibe, with its own distinguishing style, that make it attractive and likable.

Cheerful – Dynamic – Fun – Enjoying Life – Optimistic – In touch – Fresh

With a tone and style of communication all our own

What color identifies us?

• Recognizable graphic codes that

identify Cencosud communication

• A distinctive color: Orange

communicates energy and

cheerfulness while transmitting

optimism and vitality

• A frame that is part of the card's branding: parentheses

Branding that is Representative and Consistent

Cencosud Card

The best of retail cards +the best of bank cards

Accepted at our retail locations, other businesses and abroad (credit card)

... a shared image

... a shared image and presence

... a shared image and presence

... a shared image and presence

... a shared image and presence

Sales (in millions of US$)

2012 2013 2010 2011 2008 2009 2006 2007 2004 2005

Acquisition of A Paris

Acquisition of GBarbosa

Creation of the financial

services division

ARG

Creation of the financial services division

PERU

Creation of the financial services division BRAZIL

Regional implementation of the

Cencosud Card

Acquisition of Johnson

Acquisition of Prezunic

Acquisition of Carrefour

Creation of the financial services division

Colombia

Time

Creation of the financial services division CHILE

What has happened in the last 10 years?

US$ 5 billion

As of June 2014, sales reached US$ 2.8 billion

20132010 2011 20122004 2005 2006 2007 2008 2009

Tarjeta cerrada

Tarjeta Cencosud

Regional

Tarjeta abierta

Avances

Super Avances

Seguros

Evolution of Products

Store charge card, for store use only

Regional Cencosud

card

Credit card

Cash advances

"Super” cash advances

Insurance

Credit Card Sales (in billions of USD)

As of 2010, Cencosud-issued card sales reached US$ 3.1 billion.

Number of active cardholders as of December of each year.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

3.6

0.2

2.0 2.3

2.9 3.0

4.2

4.6

5.4

1.8

More than 5.4 million cards in the region, establishing trust relationships with a wide variety of Cencosud customers

Active Cards

As of June 2014, the number of cards reached 5.5 million;

the number of Cencosud cards totaled 2.2 million.

Card Sales (in billions of USD)

As of 2010, Cencosud-issued card sales reached US$ 3.1 billion.

Easy Card

Card Sales (in millions of US$)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2.7

0.6

1.5 1.8

2.5

2.1

3.3

3.8

5.2 In 2013, RF sales exceeded US$ 5 billion.

1.2

USD 2013 average

As of June 2014, sales reached US$ 5 billion

US$ Dec. 2013: 529.45 and loans at each year-end

Loans (in millions of US$)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2.1

1.4

1.2

1.4

0.8

1.2

1.5

1.0

Prior to the 2009 financial crisis, loans had reached US$ 1.4 billion. Today, they are in recovery, with US$ 2.1 billion in 2013.

1.6

0.5

As of June 2014, loans reached US$ 2.3 million.

Of every 3 dollars sold at

Cencosud,

1 will be put on our cards.

We aspire to be

Cencosud's most popular payment method

10,000,000 clients using

our Cencosud cards to

purchase at our retailers.

US$1 US$1

US$1

Joint Venture Cencosud – Scotiabank

On June 20, 2014, Cencosud announced an agreement with Banco

Scotiabank to jointly manage Cencosud's financial business in Chile,

Cencosud Administradora de Tarjetas (CAT), including credit cards and

a portfolio of consumer loans through Banco Paris.

Scotiabank will pay US$ 280 million for 51% of the financial business in

Chile for a period of 15 years.

Furthermore, Scotiabank commits to financing 100% of the financial

business portfolio in Chile and future growth of up to US$ 3.0 billion.

The deal is subject to regulatory approval in Chile and Canada. It is

expected to be closed in 4Q '14.

Post-Deal Structure

Description of the Deal

Cencosud Administradora de Tarjetas

(CAT)

51% 49%

The Deal is Positive for the Company

The deal will reduce Cencosud's Total Consolidated Debt by ~US$ 1.2 billion, strengthening its financial position.

Since Scotiabank will finance growth, Cencosud will reduce its working capital requirements (currently 50% of accounts receivable and 5% of accounts payable are related to Cencosud's retail financing business).

The deal allows for greater focus on retail operations.

This deal brings the business model that is already implemented in Brazil and Colombia to Chile.

We expect a positive reaction and we maintain our HOLD recommendation

BICE Inversiones June 2014

Positive on Scotiabank deal; upgrade to Buy and increase Target Price

CITI June 2014

Deal With Scotiabank Decreases Risks Of a Ratings Downgrade. Move To OW From Neutral

JP Morgan June 2014

Deal to reduce leverage (maintain investment grade) and release future cash flow to accelerate growth LARRAIN VIAL

June 2014

Cencosud's Credit Card Joint Venture in Chile Positive to Credit Quality

Fitch Ratings June 2014

Retail Financing Division

Cencosud Day

September 2014