Press Release 2Q 2010
CENCOSUD ANNOUNCES AN OPERATING INCOME INCREASE OF 149% IN THE SECOND QUARTER OF 2010
(Santiago, Chile, September 2nd, 2010) Cencosud S.A. (OTC: CSUDY) a Chilean-based multi-format retailer with operations in Argentina, Brazil, Chile, Colombia and Peru, announced today its consolidated financial results under IFRS for the second quarter, ended June 30th, 2010.
HIGHLIGHTS
st ¢ EBITDA in the 1 half 2010 totaled Ch$254.3 billion, an increase of 47.1% as compared to Ch$172.9 billion obtained in the same period last year. The Ebitda margin was 8.9% in 1H10 equivalent to an increase of 238 bsp YoY (6.5% in 2009). The increase in ebitda margin is the consequence of better performances across the businesses; Supermarkets‘ Ebitda grew 35.1%, 51.9% increase in Home Improvement, more than 9 times in Department Stores, Shopping Center ebitda grew 33.1% and 17.4% in Financial Services.
¢ Operating income reached Ch$133.7 billion in 2Q10, an increase of 148.9% compared to Ch$53.7 billion obtained in the same quarter of the previous year.
¢ Cencosud reported net income of Ch$82.6 billion for the second quarter 2010, a 31.9% increase compared to Ch$62.6 billion obtained in the same period last year. 1 ¢ Total revenues were Ch$1,488 billion in 2Q10, which represents a growth of 13.4% versus Ch$1,312 billion in 2Q09. Total revenue in the 1H10 were 7.7% higher versus a year ago, mainly due to increased revenues in all its markets: Chile (46.5% of total sales) increased its sales by 6.8%, Argentina (31.7% of total sales) was 14% up, Brazil (11.7% of total sales) was 43%, Peru (9.7% of total sales) was 11% up and finally Colombia (0.5% of total sales) raised its sales by 340%.
¢ SG&A expenses were Ch$613.0 billion in 1H10, as a percentage of net sales, SG&A were 60 bps lower versus 1H09.
¢ The ratio net debt to Ebitda went 38.9% down, from 3.6x as of June 2009 to 2.4x as of June 2010.
¢ Exchange rates from local currencies to the Chilean Peso had a significant impact in the consolidated figures. As a consequence of this effect revenues for the quarter increase 20.5% when measured in USD dollars and 13.4% when measured in Chilean Pesos and the Ebitda increase 95.6% measured in USD dollars and 49.6% when measured in local currency.
1 Net revenues does not include Banking Services 1 -
Press Release 2Q 2010
SECOND QUARTER 2010 ANALYSIS
NET REVENUES Second Quarter Six-Month, ended June 30th
MMCh$ as of June 30th US$ MMCh$ as of June 30th US$
2010 2009 D % D % 2010 2009 D % D %
Revenues 1.487.709 1.311.672 13,4% 20,5% 2.866.025 2.659.957 7,7% 19,5%
Supermarkets 1.062.488 969.381 9,6% 16,4% 2.060.637 1.953.086 5,5% 16,8%
Home Improvement 200.829 155.911 28,8% 36,3% 391.974 328.821 19,2% 32,1%
Department Stores 158.616 122.555 29,4% 39,9% 274.973 226.830 21,2% 35,8%
Shopping Centers 29.472 21.096 39,7% 46,4% 52.827 47.224 11,9% 24,1%
Financial Services 51.356 59.335 -13,4% -7,8% 102.549 126.960 -19,2% -9,7%
Others -15.051 -16.607 9,4% 0,7% -16.935 -22.964 26,3% 17,9%
(In million of Ch$ as of June 30th)
Consolidated net revenues in 2Q10 increased by 13.4%, from Ch$1,311,672 million to Ch$1,487,709 million. Expressed in USD dollars terms, consolidated net revenues were 20.5% higher in the second quarter of 2010 versus the same period last year.
Summary by division: • Supermarkets revenues in 2Q10 increased by 9.6% compared to 2Q09, reaching Ch$1,062,488 million. In dollars, revenues increased by 16.4%. • Home Improvement revenues increased 28.8%, to Ch$200,829 million compared to the same quarter of 2009. In dollars, net revenues increased by 36.3%. • Department Stores revenues went 29.4% up, to Ch$158,616 million in 2Q10 compared to the same quarter of 2009. In dollars, net revenues grew 39.9%. • Shopping Centers revenues increased 39.7%, to Ch$29,472 million compared to the same quarter of 2009. • Revenues from Financial Services operations decreased 13.4%, reaching Ch$51,356 million, compared to the same quarter of 2009.
Revenues by business 1H 2010 Revenues by business 1H 2009
Shopping Centers Shopping Centers 1,8% 1,9% Department Financial Services Department Financial Services Stores 3,6% Stores 4,7% 9,5% 8,4%
Home Ho me Improvement Impro vement 12,3% 13 ,6%
Supermarkets Supermarkets 71,5% 72,7% Note: Total excludes Others 2 -
Press Release 2Q 2010
GROSS PROFIT
Consolidated gross profit for the quarter increased by 26.1%, to Ch$437,010 million compared to Ch$346,423 million in 2Q09 (expressed in USD dollars gross profit increased 35.2%). Consolidated gross margin for the second quarter 2010 was 29.4%, an increase of 296 bps versus the same quarter of 2009.
Second Quarter Six-Month, ended June 30th
MMCh$ as of June 30th US$ MMCh$ as of June 30th US$
2010 2009 D % D % 2010 2009 D % D %
Gross Profit 437.010 346.423 26,1% 35,2% 808.605 698.568 15,8% 28,4%
Supermarkets 269.996 225.268 19,9% 28,6% 516.969 459.511 12,5% 24,6%
Home Improvement 60.776 47.756 27,3% 34,6% 118.414 100.758 17,5% 30,1%
Department Stores 45.546 33.291 36,8% 48,9% 76.956 54.958 40,0% 56,9%
Shopping Centers 24.679 16.045 53,8% 61,5% 43.073 34.966 23,2% 36,8%
Financial Services 39.934 29.140 37,0% 47,0% 66.594 59.496 11,9% 25,1%
Others -3.921 -5.078 22,8% 19,3% -13.401 -11.122 -20,5% -34,8%
Gross Margin (%) 29,4% 26,4% 296,4 bps 28,2% 26,3% 195,1 bps (In million of Ch$ as of June 30th)
Gross Profit by business 1H 2010 Gross Profit by business 1H 2009
Financial Shopping Financial Services Shopping Centers Services 8,1% Centers 5,2% 8,3% Department 5,8% Stores Departmentt 9,4% Stores 7,7% Home Home Improvement Improvement 14,4% 14,1% Supermarkets Supermarkets 62,9% 64,1% Note: Total excludes Others
Cencosud Gross Margin Evolution
29,4% 26,1% 27,0% 26,4%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
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Press Release 2Q 2010
Supermarkets gross profit increased to Ch$269,996 million in 2Q10. Expressed in USD dollars gross profit went 28.6% up. Gross margin increased to 25.4% from 23.2% for the same period in 2009.
Supermarkets Gross Margin Evolution
25,4% 23,8% 24,7% 23,2%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
Home Improvement gross profit increased 27.3%, to Ch$60,776 million in 2Q10. In USD dollars gross profit increased 34.6%. Gross margin decreased to 30.3% from 30.6% compared to the same period of 2009.
Home Improvement Gross Margin Evolution
30,7% 30,2% 30,6% 30,3%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
Department stores gross profit was Ch$45,546 million for 2Q 2010, an increased of 48.9% if expressed in USD dollars. Gross margin increased to 28.7% from 27.2% compared with the same period of 2009.
Department stores Gross Margin Evolution
27,0% 27,2% 28,7% 20,8%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
Shopping Centers gross profit was Ch$24,679 million in 2Q10, in dollars gross profit increased by 61.5%. Gross margin increased from 76.1% to 83.7% for the same period in 2009.
Shopping Centers Gross Margin Evolution
72,4% 78,8% 76,1% 83,7%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
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Press Release 2Q 2010
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A)
SG&A expenses in 2Q10 were Ch$332,798 million. As a percentage of net revenues, SG&A expenses slightly decreased, to 22.4% in 2Q 2010 from 22.5% during the same period 2009. In the first half of 2010, Cencosud decreased its SG&A as a percentage of net revenues by 69 bps, mainly due to a shared service center implementation, processes and technology improvements and use of corporate synergies.
Second Quarter Six-Month, ended June 30th
MMCh$ as of June 30th US$ MMCh$ as of June 30th US$
2010 2009 ∆ % ∆ % 2010 2009 ∆ % ∆ %
Selling & adm. expenses -332.798 -295.546 12,6% 19,6% -613.006 -587.201 4,4% 15,7%
Supermarkets -211.012 -188.899 11,7% 17,9% -393.277 -376.888 4,3% 15,2%
Home Improvement -51.625 -44.368 16,4% 23,7% -95.987 -89.305 7,5% 19,1%
Department Stores -34.898 -30.855 13,1% 21,3% -66.797 -62.536 6,8% 19,7%
Shopping Centers -7.583 -7.790 -2,7% 8,9% -9.022 -12.533 -28,0% -18,0%
Financial Services -18.747 -14.783 26,8% 37,9% -33.137 -31.040 6,8% 20,4%
Others -8.933 -8.851 0,92% 9,4% -14.786 -14.899 -0,8% 10,8%
S&A Margin (%) -22,4% -22,5% 16,2 bps -21,4% -22,1% 68,7 bps
SG&A by business 1H 2010 SG&A by business 1H 2009
Financial Financial Shopping Others Shopping Services Services Others Centers 2,4% Centers 5,3% 5,4% 2,5% Department 1,5% Department 2,1% Stores Stores 10,9% 10,6%
Home Home Improvement Improvement 15,7% 15,2% Supermarkets Supermarkets 64,2% 64,2%
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Press Release 2Q 2010
OPERATING INCOME
Operating income2 in 2Q10 increased by 148.9% going to Ch$133,712 million, versus Ch$53,725 million in the same quarter of 2009. Consolidated operating margin more than doubled in 2Q10 versus a year ago, reaching 9.0% compared to 4.1% in 2Q 2009.
Second Quarter Six-Month, ended June 30th
MMCh$ as of June 30th US$ MMCh$ as of June 30th
2010 2009 D % D % 2010 2009 D %
Operating Income 133.712 53.725 148,9% 40,7% 225.890 115.009 96,4%
Supermarkets 58.983 36.369 62,2% 28,6% 123.692 82.623 49,7%
Home Improvement 9.151 3.388 170,1% 169,2% 22.427 11.452 95,8%
Department Stores 10.649 2.436 337,2% 464,8% 10.159 -7.578 n.a.
Shopping Centers 17.096 8.255 107,1% 108,4% 34.051 22.434 51,8%
Financial Services 21.186 14.358 47,6% 56,4% 33.457 28.456 17,6%
Others 16.647 -11.081 n.a. n.a. 2.103 -22.378 n.a.
Operating Margin (%) 9,0% 4,1% 489,2 bps 7,9% 4,3% 355,8
Operating Income by business 1H 2010 Operating Income by business 1H 2009
Financial Services 15,0% Financial Services Shopping Centers Supermarkets 19,8% 15,2% 55,2% Shopping Center 20,1%
Department | Stores Department Supermarket 4,6% Home Stores Home 57,4% Improvement 5,3% 10,0% Improvement 8,0%
Note: Total excludes Others
Summary by division: Supermarkets operating income increased 62.2% in 2Q10, to Ch$58,983 million compared to Ch$36,369 million in 2Q09. In USD dollars, operating income increased 28.6%. Operating margin increased to 5.6% from 3.8% for the same period in 2009.
2 Miscellaneus Other Income Expenses and Share of Profit (Loss) from Equity-Accounted Associates are included in Others. 6 -
Press Release 2Q 2010
Home Improvement operating income was Ch$9,151 million in 2Q10. In USD dollars, operating income increased 169.2%. Operating margin increased to 4.6% from 2.2% in 2Q09. Department Stores operating income increased to Ch$10,649 million, in USD dollars, operating income increased more than 4 times. Operating margin increased in 2Q10 to 6.7% from 2.0%. Shopping Center operating income increased to Ch$17,096 million, in dollars operating income increased 108.4%. Financial Services operating income was Ch$21,186 million in 2Q10, in dollars, operating income increased by 56.4%, in addition, operating margin increased to 41.3% from 24.2% in 2Q09.
NON OPERATING INCOME
In 2Q10 the company had a non-operating loss of Ch$26,530 million, compared to a non-operating profit of Ch$14,596 million in the second quarter of 2009. As of June 30, 2009, the accrued gain from the PUT option variation was $28.297 million. This amount doesn‘t constitute EBITDA. As of June 30, 2010, the realized gain related to this PUT option was $15,508 million. This amount is computed into the EBITDA as it represents a realized gain.
Second Quarter Six-Month, ended June 30th MMCh$ as of June 30th MMCh$ as of June 30th 2010 2009 ∆ % 2010 2009 ∆ % Non Operating Income
Other profits (losses) -2.493 29.183 n.a. 4.811 36.842 -86,9%
Financial Income 4.241 2.912 45,7% 8.634 4.803 79,8% Finance Costs [for Non-Financial Activities] -19.683 -20.057 -1,9% -39.622 -52.764 -24,9% Income (loss) from foreign exchange variations -672 2.134 n.a. -2.612 -5.180 -49,6%
Result of indexation units -7.923 425 n.a. -9.789 14.913 n.a.
-26.530 14.596 n.a. -38.578 -1.386 -2683,3%
NET INCOME Net income for the quarter increased 31.9%, to Ch$82,633 million in 2Q10 from Ch$62,632 million for same period of last year. As a percentage of net revenues, net income increased to 5.6% in 2Q10, from 4.8% in 2Q09.
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Press Release 2Q 2010
EBITDA Consolidated Ebitda3 for the quarter increased 49.6%, reaching Ch$127,764 million in 2Q10, compared to Ch$85,404 million in the second quarter 2009. Measured in USD dollars, Ebitda for 2Q10 increased 95.6% compared to 2Q2009.
Second Quarter Six-Month, ended June 30th
MMCh$ as of June 30th US$ MMCh$ as of June 30th US$
2010 2009 ∆ % ∆ % 2010 2009 ∆ % ∆ %
EBITDA 127.764 85.404 49,6% 95,6% 254.301 172.934 47,1% 63,7%
Supermarkets 74.250 53.604 38,5% 48,5% 154.952 114.711 35,1% 50,9%
Home Improvement 13.493 7.831 72,3% 78,2% 30.720 20.221 51,9% 67,9%
Department Stores 14.429 7.309 97,4% 25,9% 18.350 1.803 917,9% 1040,3%
Shopping Centers 17.893 12.300 45,5% 51,0% 37.837 28.430 33,1% 46,9%
Financial Services 22.567 15.089 49,6% 58,6% 35.130 29.935 17,4% 30,0%
Others -14.867 -10.729 -38,6% -58,3% -22.687 -22.165 -2,4% -13,5%
EBITDA Margin (%) 8,6% 6,5% 207,7 bps 8,9% 6,5% 237,2 bps
EBITDA explained by variations in business segments h t 0 3
160.000 e n
u 140.000 J
f 120.000 o
s
A 100.000
$
h 80.000 C
f 60.000 o
s 40.000 n o i l
l 20.000 i m - n t t l I s s d d s g n t n a s r i u u e n r e e e e i 9 c 0 s s c e s i k h p 0 t n 1 o e o m m r t e v t p c c n a e r Q r Q a r m O o e n n n v o 2 e 2 i a o t h e m e o C S F p r S r S H C C e e p p D m u I S
3 EBITDA calculation doesn‘t include income generated from property reappraisals, currency variations charges related to UF denominated liabilities nor the income generated in 2009 by the change in liabilities related to Wong stock options, exercised on 1Q 2010. 8 -
Press Release 2Q 2010
ANALYSIS BY BUSINESS AND COUNTRY
HYPERMARKETS & SUPERMARKETS
CHILE In the second quarter of 2010, net revenues of Chilean Supermarkets were 3.2% higher versus the same period 2009, reaching Ch$404,942 million in 2Q10. There is an increase in SSS measured in Chilean pesos of 4.5%. COGs in 2Q10 increased by 4.7% to Ch$310,683 million, from Ch$296,723 million in the same period of 2009. Gross profit for the quarter ended June 30th, 2010 was Ch$94,259 million, a decrease of 1.3% versus 2Q09.
CHILE œ HYPERMARKETS & SUPERMARKETS
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 3,0% 4,5% #¡DIV/0! #¡DIV/0! 3,7% 3,7% 3,7% 2009 2,8% 4,1% 1,4% -1,6% 3,5% 2,8% 1,5% 2008 13,0% 8,1% 8,3% 8,3% 10,4% 9,7% 9,3% N° Same Store Tickets
2010 -4,4% -0,2% #¡DIV/0! #¡DIV/0! -2,3% -2,3% -2,3% 2009 -6,3% -3,9% -3,0% -2,3% -5,1% -4,4% -3,8% 2008 2,2% -1,7% -0,9% -2,5% 0,2% -0,2% -0,8% SS Average Ticket Nominal
2010 7,7% 4,7% #¡DIV/0! #¡DIV/0! 6,1% 6,1% 6,1% 2009 9,7% 8,3% 4,5% 0,8% 9,0% 7,5% 5,6% 2008 10,6% 10,0% 9,2% 11,1% 10,3% 9,9% 10,2% * Measured in local currency.
Gross Margin Evolution Supermarkets Chile
24,8% 24,4% 22,9% 23,3%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
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Press Release 2Q 2010
HYPERMARKETS CHILE SELLING SPACE Jumbo stores Square Meters As of June 30th Store Selling Region Opening Store Selling Region Opening Space Space Jumbo Kennedy 11.816 RM September 1976 Jumbo Pajaritos 7374 RM August 2005 Jumbo Maipú 11.388 RM December 1996 Jumbo Puerto Montt 7.330 X December 2005 Jumbo La Florida 11.210 RM February 2002 Jumbo Ñuñoa 7.190 RM December 2008 Jumbo Viña 10.428 V January 2002 Jumbo El Llano 7.181 RM June 2004 Jumbo La Reina 10.348 RM August 2002 Jumbo El Alba 7.100 RM June 2009 Jumbo Rancagua 9.315 VI April 2000 Jumbo Valparaiso 6.384 V March 2006 Jumbo Antofagasta 9.233 II February 2006 Jumbo Puente Alto 5.770 RM October 2006 Jumbo Temuco 8.950 IX November 2004 Jumbo Aconcagua 5.741 V December 2006 Jumbo Peñalolen 8.777 RM November 2003 Jumbo Osorno 5.543 X December 2008 Jumbo Bilbao 8.673 RM August 1979 Jumbo Talca 5.421 VII May 2008 Jumbo La Dehesa 8.546 RM October 2003 Jumbo Curicó 5.401 VII March 2007 Jumbo La Serena 8.064 IV July 2006 Jumbo Punto de Encuentro 5.172 II September 2006 Jumbo El Belloto II 7.992 V December 2008 Jumbo Copiapó 4.720 III October 2005 Jumbo Chillán 7.949 VIII February 2005 Total 213.016 N° of Stores 27
SUPERMARKETS CHILE SELLING SPACE Santa Isabel Stores Square Meters As of June 30th Region Selling Space N° of Stores Region Selling Space N° of Stores
I 1.170 1 VIII 31.460 18 II 5.350 4 IX 7.691 6 IV 4.883 4 X 5.777 4 V 36.932 27 XV 2.246 2 VI 5.815 4 XIV 2.485 2 VII 6.582 5 RM 78.628 57 Total 189.020 N° of Stores 134
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Press Release 2Q 2010
ARGENTINA Net revenues in 2Q10 went 10.7% up versus the same period last year, reaching Ch$343,785 million, from Ch$310,657 million in the same quarter 2009, primarily due to a 25.9% rise in nominal SSS4 for the second quarter 2010 compared to 2Q09. COGs for the quarter decreased by 1.5% to Ch$236,857 million in 2Q10. Gross profit increased in 2Q10 by 52.2% versus the same perios last year, reaching Ch$106,928 million.
ARGENTINA œ HYPERMARKETS & SUPERMARKETS
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 21,4% 25,9% #¡DIV/0! #¡DIV/0! 23,7% 23,7% 23,7% 2009 10,7% 12,2% 10,0% 12,4% 11,5% 10,9% 11,4% 2008 31,8% 25,9% 22,6% 19,5% 28,7% 26,5% 24,4% N° Same Store Tickets
2010 -2,2% -0,9% #¡DIV/0! #¡DIV/0! -1,5% -1,5% -1,5% 2009 -7,2% -7,6% -9,1% -5,4% -7,4% -8,0% -7,3% 2008 2,7% 1,8% 0,6% -2,1% 2,3% 1,7% 0,7% SS Average Ticket Nominal
2010 24,1% 27,0% #¡DIV/0! #¡DIV/0! 25,6% 25,6% 25,6% 2009 19,4% 21,5% 20,9% 18,8% 20,4% 20,6% 20,2% 2008 28,3% 23,6% 21,9% 22,2% 25,9% 24,4% 23,6% * Measured in local currency.
Gross Margin Evolution Supermarkets Argentina
31,1% 25,6% 25,2% 22,6%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
HYPERMARKETS ARGENTINA SELLING SPACE Jumbo Stores Square Meters As of June 30th Store Selling Space Opening Store Selling Space Opening
Parque Brown 7.492 September 1982 Escobar 7.770 February 2000 Unicenter 12.428 October 1988 Neuquén 9.710 November 2000 Lomas de Zamora 9.873 November 1993 Mendoza 10.325 November 2001 San Martín 8.200 December 1994 Almagro 5.240 September 2003 Palermo 11.521 October 1996 Rosario 7.991 October 2004 Plaza Oeste 9.035 April 1997 Tronador 4.547 June 2007 Quilmes 9.755 September 1997 Tucumán 6.964 May 2007 Pilar 11.151 December 1998 Acoyte 4.263 July 2008 Total 136.265 N° of Stores 16
4 Measured in Argentinean Pesos 11 -
Press Release 2Q 2010
SUPERMARKETS ARGENTINA SELLING SPACE Disco, Vea, Plaza Vea, Despensas Vea Square Meters As of June 30th
Province Selling space Number of Stores Province Selling space Number of Stores Buenos Aires 117.399 91 Costa 23.442 17 Cuyo 73.247 52 Centro 63.472 55 Noa 31.890 21 Total 309.451 N° of Stores 236
BRAZIL Brazilian net revenues increased 35.9% compared to the same period in 2009, reaching Ch$175,602 million. Gross profit increased by 46.3%, and reached in 2Q10 a total of Ch$38,276 million versus Ch$26,168 million for the same quarter of 2009. Gross margin increased to 21.8% from 20.2% for the same period in 2009.
BRAZIL -HYPERMARKETS & SUPERMARKETS
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 11,0% 4,5% #¡DIV/0! #¡DIV/0! 7,6% 7,6% 7,6% 2009 -3,6% -2,1% -1,0% 2,2% -2,8% -2,2% -0,9% N° Same Store Tickets
2010 1,6% -4,7% #¡DIV/0! #¡DIV/0! -1,6% -1,6% -1,6% 2009 0,3% 1,2% 0,1% -1,2% 0,8% 0,5% 0,1% SS Average Ticket Nominal
2010 9,2% 9,7% #¡DIV/0! #¡DIV/0! 9,4% 9,4% 9,4% 2009 -3,9% -3,3% -1,1% 3,5% -3,6% -2,7% -1,0% * Measured in local currency.
Gross Margin Evolution Supermarkets Brazil
21,3% 22,9% 21,8% 20,2%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
Gbarbosa operates 22 hypermarkets, 35 supermarkets, 28 electroshows5 and 48 Pharmacies.
5 Small stores where are sold primarily electronics and other durable goods. 12 -
Press Release 2Q 2010
SUPERMARKETS BRAZIL SELLING SPACE Gbarbosa Stores Square Meters As of June 30th N° of Stores Selling space
Hypermarkets 22 89.015 Supermarkets 35 39.143 Others 76 4.184 Total 133 132.342
PERU Net revenues for the quarter were Ch$138,160 million and COGS amounted to Ch$107,627 million. In 2Q10, gross profit for Peruvian operations decreased to Ch$30,533 million. Gross margin dropped to 22.1% from 24.3% for the same period in 2009.
PERU -HYPERMARKETS & SUPERMARKETS
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 -2,6% -3,3% #¡DIV/0! #¡DIV/0! -3,0% -3,0% -3,0% 2009 N/A 0,4% -7,3% -2,7% 0,2% -2,4% -2,5% N° Same Store Tickets
2010 -0,7% 0,3% #¡DIV/0! #¡DIV/0! -0,2% -0,2% -0,2% 2009 N/A 3,1% -5,8% -2,2% 3,1% -1,7% -1,9% SS Average Ticket Nominal
2010 -1,9% -3,6% #¡DIV/0! #¡DIV/0! -2,7% -2,7% -2,7% 2009 N/A -2,6% -1,7% -0,6% -2,8% -0,7% -0,6% * Measured in local currency.
Gross Margin Evolution Supermarkets Peru*
25,6% 24,1% 24,3% 22,1%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
6
6 Logistics costs were reclassified in accordance of IFRS standards. 13 -
Press Release 2Q 2010
SUPERMARKETS PERU SELLING SPACE Square Meters As of June 30th
N° of Stores Selling space
Supermarkets 45 99.112 Hypermarkets 13 89.596 Total 58 188.708
HOME IMPROVEMENT STORES
CHILE In 2Q10, net revenues for the Chilean home improvement stores went 33.7% up due mainly to double digit growth in SSS. For the quarter revenues totaled Ch$84,513 million, from Ch$63,197 million in the same period in 2009. COGs for the quarter increased by 35.2%, to Ch$62,486 million from Ch$46,232 million in the same period of 2009. Gross profit in 2Q10 was Ch$22,027 million which represents an increase of 29.8% compared to the same quarter of the previous year.
EASY CHILE œ HOME IMPROVEMENT STORES
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 27,3% 27,6% #¡DIV/0! #¡DIV/0! 27,4% 27,4% 27,4% 2009 -8,1% -3,2% 0,7% 17,3% -5,6% -3,6% 1,7% 2008 13,2% 12,7% 14,6% -5,4% 12,9% 13,5% 7,9% N° Same Store Tickets
2010 15,1% 15,6% #¡DIV/0! #¡DIV/0! 15,4% 15,4% 15,4% 2009 -8,5% 1,5% 4,8% 9,0% -3,6% -1,0% 1,6% 2008 0,5% -2,1% -4,0% -7,9% -0,7% -1,8% -3,5% SS Average Ticket Nominal
2010 10,5% 10,4% #¡DIV/0! #¡DIV/0! 10,5% 10,5% 10,5% 2009 0,4% -4,6% -3,9% 7,7% -2,1% -2,6% 0,0% 2008 12,5% 15,1% 19,3% 2,7% 13,8% 15,5% 11,8% * Measured in local currency.
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Press Release 2Q 2010
Gross Margin Evolution Home Improvement Stores - Chile
27,7% 26,5% 26,8% 26,1%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
HOME IMPROVEMENT CHILE SELLING SPACE Easy Stores Square Meters As of June 30th Store Region Opening Store Region Opening
Easy Antofagasta II February 2006 1 Easy Concepción Alessandri VIII April 2010 Easy Copiapó III October 2008 1 Easy Concepción Castellón VIII April 2010 Easy La Serena IV August 2006 1 Easy Temuco IX November 2002 Easy Viña V January 2002 1 Easy Osorno X July 2007 Easy Valparaíso V February 2006 1 Easy Easy Puerto Montt X December 2005 Easy El Belloto V November 2007 1 Easy Maipú RM May 1997 Easy Quillota V November 2008 1 Easy Kennedy RM March 1994 Easy Rancagua VI April 2000 1 Easy Quilín RM December 2001 Easy Linares VII November 2002 1 Easy La Reina RM July 2002 Easy Curicó VII March 2007 1 Easy La Florida RM July 2002 Easy Talca VII February 2008 1 Easy La Dehesa RM July 2003 Easy Chillan VIII November 2002 1 Easy El Llano RM May 2004 Easy Los Angeles VIII November 2002 1 Easy Cerrillos RM March 2008 1 Easy Quilicura RM December 2008 Total 256.644 N° of Stores 27
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Press Release 2Q 2010
ARGENTINA In Chilean peso terms, net revenues for the second quarter 2010 increased 18.1% to Ch$107,596 million. In dollars, revenues increased by 23.9%, primarily as a result of a 29.0% increase in nominal same store sales for the second quarter 2010. COGS in 2Q10 were up by 17.8% and reached Ch$71,475 million, from Ch$60,694 million in the same period 2009. Gross profit, measured in dollars, increased by 24.8% and in Chilean peso terms gross profit increased 18.8%, to Ch$36,121 million in 2Q10.
EASY ARGENTINA - HOME IMPROVEMENT STORES
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 22,7% 29,0% #¡DIV/0! #¡DIV/0! 25,8% 25,8% 25,8% 2009 0,5% -3,2% 1,8% 7,3% -1,3% -0,2% 1,8% 2008 22,0% 18,0% 16,6% 8,6% 20,0% 18,8% 15,8% N° Same Store Tickets
2010 0,1% 2,3% #¡DIV/0! #¡DIV/0! 1,1% 1,1% 1,1% 2009 -7,9% -6,6% -4,1% -4,8% -7,3% -6,2% -5,9% 2008 2,3% -5,8% -3,0% -3,2% -1,7% -2,1% -2,4% SS Average Ticket Nominal
2010 22,6% 26,2% #¡DIV/0! #¡DIV/0! 24,4% 24,4% 24,4% 2009 9,1% 3,6% 6,2% 12,8% 6,4% 6,4% 8,2% 2008 19,2% 25,3% 20,2% 12,2% 22,0% 21,3% 18,7% * Measured in local currency. SSS does not include Blaisten stores.
Gross Margin Evolution Home Improvement Stores - Argentina
32,4% 32,6% 33,4% 33,6%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
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Press Release 2Q 2010
HOME IMPROVEMENT ARGENTINA SELLING SPACE Easy & Blaisten Stores Square Meters As of June 30th Store Opening Store Opening Easy Parque Brown August 1993 Easy Tucuman November 2004 Easy Lomas July 1994 Easy Córdoba Carcano June 2005 Easy San Martín December 1994 Easy San Luis June 2006 Easy San Isidro May 1996 Easy Caseros August 2006 Easy Palermo October 1996 Easy Córdoba J.B. Justo October 2006 Easy Quilmes May 1997 Easy Caballito July 2007 Easy Ituzaingo June 1998 Easy La Rioja October 2007 Easy Pilar December 1998 Easy General Roca December 2007 Easy Plaza Oeste October 1999 Easy Moreno December 2007 Easy Avellaneda December 1999 Easy Canning January 2008 Easy Escobar February 2000 Easy Jose C. Paz August 2008 Easy Barracas August 2000 Easy Rivadavia November 2008 Easy Don Torcuato September 2000 Easy San Miguel November 2008 Easy Neuquén November 2000 Easy Trelew February 2010 Easy Córdoba December 2000 Easy Salta June 2010 Easy La Tablada April 2001 Blaisten Floresta October 2007 Easy Mendoza October 2001 Blaisten Palermo October 2007 Easy San Juan June 2001 Blaisten Martinez October 2007 Easy Warnes July 2001 Blaisten Castelar October 2007 Easy Liniers April 2003 Blaisten Barracas October 2007 Easy Alto Avellaneda July 2003 Blaisten Recoleta October 2007 Easy Constituyentes September 2003 Blaisten San Justo October 2007 Easy San Justo II October 2003 Blaisten Quilmes June 2010 Easy Rosario June 2004 Blaisten Moreno October 2007 Total m2 Easy 347.337 N° of Easy Stores 39
Total m2 Blaisten 15.678 N° of Blaisten Stores 9 Total M2 3 63.015 Total 48
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Press Release 2Q 2010
COLOMBIA Net revenues for the quarter were Ch$8,720 million, gross profit was Ch$2,628 million and gross margin reached 30.1%. In Colombia, the Company currently operates four Easy stores with 34,309 square meters (two of them opened on March 2010).
COLOMBIA -HOME IMPROVEMENT STORES
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M 2010 -0,1% -10,9% #¡DIV/0! #¡DIV/0! -5,7% 7,6% 7,6% N° Same Store Tickets 2010 3,2% -1,0% #¡DIV/0! #¡DIV/0! 1,1% -1,6% -1,6% SS Average Ticket Nominal 2010 -3,2% -10,0% #¡DIV/0! #¡DIV/0! -6,8% 9,4% 9,4% * Measured in local currency.
Gross Margin Evolution Home Improvement Stores - Colombia
32,5% 37,1% 24,0% 30,1%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
HOME IMPROVEMENT COLOMBIA SELLING SPACE Easy Stores Square Meters As of June 30th Store Region Opening Easy Américas Bogotá March 2010 Easy Centro Mayor Bogotá March 2010 Easy Occidente Bogotá October 2008 Easy Norte Bogotá November 2009 Total 34.309 N° of Stores 4
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Press Release 2Q 2010
DEPARTMENT STORES
CHILE Net revenues for the quarter were Ch$158,616 million, a 29.4% growth compared to last year‘s 2Q, mainly because a increase in SSS of 30.8%. Cost of sales for the quarter increased 26.7%, to Ch$113,070 million from Ch$89,264 million last year. Gross profit for the quarter increased 36.8%, to Ch$45,546 million, compared to 2Q09.
PARIS - DEPARTMENT STORES
Nominal Same Store Sales Q1 Q2 Q3 Q4 6M 9M 12M
2010 11,1% 30,8% #¡DIV/0! #¡DIV/0! 21,7% 21,7% 21,7% 2009 -10,2% -7,3% -3,8% 10,3% -8,6% -7,0% -1,7% 2008 2,0% 2,1% -1,6% -6,3% 2,0% 0,8% -1,5% 2007 0,8% 2,6% 4,7% 5,7% 1,5% 2,4% 3,3% N° Same Store Tickets
2010 -4,7% 21,8% #¡DIV/0! #¡DIV/0! 7,5% 7,5% 7,5% 2009 -17,6% -20,5% -17,5% 0,1% -19,0% -18,5% -13,0% 2008 -6,5% -5,8% -9,7% -14,4% -6,1% -7,3% -9,5% SS Average Ticket Nominal
2010 16,5% 7,4% #¡DIV/0! #¡DIV/0! 13,2% 13,2% 13,2% 2009 9,0% 16,7% 16,6% 10,1% 12,8% 14,1% 12,9% 2008 9,1% 8,3% 9,0% 9,5% 8,7% 8,8% 8,9% * Measured in local currency. ** SSS does not include Umbrale and Foster stores.
Gross Margin Evolution Department Stores - Chile
27,0% 27,2% 28,7% 20,8%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
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Press Release 2Q 2010
DEPARTMENT STORES CHILE SELLING SPACE Square Meters As of June 30th Store Selling Region Opening Store Selling Region Opening Space Space Iquique 6.657 I May 2008 Puerto Montt 7.292 X March 2005 Calama 4.896 II March 2005 Alto Las Condes 9.889 RM March 2005 Antofagasta II 9.285 II September 2006 Vespucio 8.481 RM March 2005 La Serena 7.153 IV March 2005 Tobalaba 7.645 RM March 2005 Viña Del Mar 8.988 V March 2005 Lyon 7.600 RM March 2005 Valparaíso 6.602 V October 2006 P.Oeste 11.187 RM March 2005 Rancagua 7.754 VI March 2007 La Florida 10.801 RM March 2005 Talca 4.338 VII March 2005 P. Arauco 10.702 RM March 2005 Curicó 8.602 VII November 2006 Alameda 6.717 RM March 2005 Trébol 6.037 VIII March 2005 Huechuraba 5.892 RM March 2005 Los Angeles 5.146 VIII March 2005 Ahumada 2.609 RM June 2007 Chillan 4.672 VIII March 2005 San Bernardo 6.375 RM November 2007 Barros Arana 7.915 VIII March 2005 Maipú 6.307 RM November 2007 Temuco II 8.042 IX February 2006 Bandera 6.073 RM June 2008 Temuco 7.280 IX March 2005 Paseo Estación 6.764 RM November 2008 Total Paris Stores 217.698 N° of Paris Stores 30
SHOPPING CENTERS7
CHILE Net revenues for Chilean shopping centers (which excludes inter-company lease payments, such as Paris, Jumbo, Easy, Santa Isabel and others) for the quarter increased 43.1% and reached Ch$12,410 million. The occupancy rate8 was 99.11% in the second quarter 2010 compared to 97.60% in the same quarter 2009. Gross margin was 96.9% in 2Q10, compared to 93.1% in the same quarter of 2009.
Gross Margin Evolution Shopping Centers Chile
96,9% 90,7% 93,1% 81,7%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
SHOPPING CENTERS CHILE LEASEABLE AREA Square Meters As of June 30th Third Parties Opening Third Parties Opening Leasable Area* Leasable Area* Alto Las Condes 76.110 September 1993 Portal La Dehesa 46.407 November 2003 Portal Rancagua 6.981 May 2000 Portal El Belloto 14.622 April 2004 Portal La Reina 9.087 August 2002 Portal Temuco 29.534 November 2005 Florida Center 75.797 September 2003 Portal Valparaíso 7 55 October 2006 Total 259.293 N° of Stores 8 *Excluding Areas leased to Jumbo, Easy, Paris y SISA.
7 The Company restated reimbursement of expenses that were previously accounted as revenues of the Shopping Center division into lower costs of goods sold, in accordance of IFRS standards. 8 Measured as leased square meters over total leasable square meters. 20 -
Press Release 2Q 2010
ARGENTINA In the second quarter 2010, net revenues increased 37.5% and totaled Ch$14,760 million. The occupancy rate9 was 97.64% in the second quarter 2010 compared to 96.49% during the same period of 2009. Gross profit increased in 2Q10 by 10.6% versus 2Q09, reaching Ch$10,288 million. In dollars, gross profit increased by 15.7%.
Gross Margin Evolution Shopping Centers Argentina
84,2% 86,7% 63,2% 69,7%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
SHOPPING CENTERS ARGENTINA LEASEABLE AREA Square Meters As of June 30th Third Parties Third Parties Leasable Area* Leasable Area* Parque Brown 9.975 El Portal de la Patagonia 7.368 San Martín 5 .318 El Portal de Escobar 4.309 Unicenter 7 2.374 El Portal de los Andes 5.979 Lomas Center 8.361 Portal Rosario 2 4.021 Plaza Oeste 1 9.601 Portal Tucumán 8.143 Quilmes 1 1.447 Portal de Palermo 8.084 Las Palmas de Pilar 1 7.387 Trelew 5.797 Total 208.164 N° of Stores 14 *Excluding Areas leased to Jumbo, Easy, Disco
PERU During the second quarter 2010, net revenues increased 36.0% and were Ch$2,302 million. In dollars, net revenues increased 47.4%.
SHOPPING CENTERS PERU LEASEABLE AREA Square Meters As of June 30th
Region Third Parties Plaza Lima Sur Lima 46.750 Plaza Camacho Lima 8.000 Total m2 54.750
9 Measured as leased square meters over total leasable area. 21 -
Press Release 2Q 2010
FINANCIAL SERVICES
CHILE Net revenues in 2Q10 were Ch$47,974 million, a decrease of 13.0% versus the same period last year. COGs were Ch$10,616 million and gross profit increased 41.7%, reaching to Ch$37,359 million in second quarter 2010.
Gross Margin Evolution Financial Services - Chile
77,9% 50,3% 42,8% 47,8%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
% Sales With Credit Cards Over Total Sales
Q1 Q2 Q3 Q4
Department Stores - Chile 2010 49,9% 56,3% - - 2009 51,6% 55,1% 55,2% 54,4%
Home Improvement Stores - Chile 2010 21,8% 19,8% - - 2009 20,9% 20,7% 19,6% 21,5%
Hypermarkets - Chile 2010 18,7% 20,3% - - 2009 19,3% 19,2% 18,9% 20,5%
Supermarkets - Chile 2010 7,3% 7,8% - - 2009 7,9% 7,7% 7,5% 8,2%
Mothly statements of account issued in Chile (thousands)
Q1 Q2 Q3 Q4
2010 1.786 1.746 #¡DIV/0! #¡DIV/0! 2009 1.983 1.908 1.848 1.795 2008 1.966 1.960 1.983 1.978
Insurance brokerage increased 9.4% during the second quarter 2010 compared to the same period 2009, from Ch$7,274 million to Ch$7,957 million. 22 -
Press Release 2Q 2010
Premiums (Ch$ Millions)
9.000 7.957 7.608 7.494 7.554 7.673 8.000 7.266 7.187 7.241 7.274 7.000 6.000 5.000 4.000 3.000 2.000 1.000 - Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10
The average number of insurances brokered decreased by 9.7%, compared to the second quarter of 2009.
Average Number of Insurances Monthly Brokered 1Q 2Q 3Q 4Q 2010 610.112 604.696 0 0 2009 668.171 669.787 658.457 629.747 2008 732.690 716.411 671.260 653.288
ARGENTINA Net revenues in the second quarter 2010 reached Ch$1,206 million while COGs were Ch$743 million for the period. Credit card loan portfolio were Ars$345 million as of June 30th, 2010 and sales with credit cards over total retail sales reached 11.7%.
Gross Margin Evolution Financial Services - Argentina
65,5% 53,7% 57,7% 38,4%
1Q'09 1Q'10 2Q'09 2Q'10 3Q'09 3Q'10 4Q'09 4Q'10
% Sales With Credit Cards Over Total Sales
Q1 Q2 Q3 Q4
Total Retail - Argentina 2010 9,5% 11,7% 2009 8,1% 8,0% 8,1% 9,7%
The number of insurances brokered increased 27.2%, compared to second quarter of 2009.
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Press Release 2Q 2010
Number of Insurances Brokered 1Q 2Q 3Q 4Q 2010 189.593 214.908 0 0 2009 163.846 169.015 170.288 174.268 2008 72.376 103.949 135.939 156.736
BRAZIL Net revenues for the Brazilian financial services in the second quarter was Ch$1,738 million at June 30th 2010.
CREDIT CARD LOAN PORTFOLIO ARGENTINA & CHILE
CREDIT CARD LOAN PORTFOLIO (MMUS$)
829 827 827 726 753 750
1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10
CREDIT CARD LOAN PORTFOLIO RISK RATIO (provisions/loans)
2Q'10 2Q'09 ∆% Chile Risk ratio 10,0% 12,5% -2,6% Argentina Risk ratio 1,6% 3,0% -1,5%
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Press Release 2Q 2010
ABOUT CENCOSUD
Cencosud is a leading multi-format retailer in Argentina, Brazil, Chile, Colombia and Peru. Through its supermarket, home improvement, department stores, shopping centers and financial services divisions, the Company targets a wide range of customers with the right combinations of products, prices and quality, designed to meet their growing demands.
Each one of Cencosud strong brands builds a lasting relationship, helping costumers to fulfill their needs and build up their trust by providing excellent products, and services, supported by an attractive loyalty program.
The company has evolved with its customers since it was founded in 1960 by it‘s Chairman Mr. Horst Paulmann, this shows a continuous commitment to serve existing and new customers by offering multiple shopping channels and complementary services.
Strategic acquisitions and organic growth have created a unique value portfolio. Cencosud continues its profitable growth by opening new stores and developing new sales channels through Brazil, Peru, Chile, Colombia and Argentina, this allows the company to achieve its goal of being one of the most prestigious and profitable retailers in Latin America.
As of June 2010, the Company operates 43 Jumbo hypermarkets, 134 Santa Isabel supermarkets, 236 supermarkets under the brand names Disco, Plaza Vea and Super Vea, 79 home improvement stores under the brand names Easy and Blaisten, 57 Gbarbosa supermarkets and Hypermarkets, 58 supermarkets and Hypermarkets in Peru under the brands Wong and Metro, 30 Paris department stores and 24 shopping centers.
This news release contains forward-looking statements, including statements regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward- looking statements are not guarantee of future performance and involve a number of risks and uncertainties including, but not limited to, the risks detailed in the company‘s financial statements, and the fact that actual results could differ materially from those indicated by such forward-looking statements.
Exchange Rates USD / Chilean pesos Cum. Average Cum. Average Country Jun 30th 2010 Close 2010 Jun 30th 2009 Close 2009 Chile 524,52 547,19 587,56 531,76 Argentina 524,63 577,28 Brasil 531,05 576,41 Perú 527,94 585,37 Colombia 525,07 584,19
For further information contact: Marisol Fernández T: (562) 959 0545 [email protected]
-FINANCIAL TABLES TO FOLLOW-
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Press Release 2Q 2010
CENCOSUD S.A. OPERATING DATA BY BUSINESS SEGMENT AND COUNTRY
Second Quarter 2010 2009 Number of stores (at end of period):
Supermarkets: Chile 161 163 Argentina 252 258 Brazil 57 51 Peru 58 56 Supermarkets subtotal 528 528
Home Improvement Stores: Chile 27 25 Argentina 48 48 Colombia 4 1 Home Improvement Stores subtotal 79 74
Department Stores: Chile 30 30 Department Stores subtotal 30 30
Shopping Centers: Chile 8 8 Argentina 14 12 Peru 2 2 Shopping Centers subtotal 24 22 Total 661 654
Total selling space of stores (at end of period)
Supermarkets: Chile 402.035 405.835 Argentina 445.716 447.940 Brazil 132.342 122.782 Peru 188.708 180.112 Supermarkets subtotal 1.168.801 1.156.670
Home Improvement Stores: Chile 256.644 251.144 Argentina 363.015 361.008 Colombia 34.309 8.411 Home Improvement Stores subtotal 653.968 620.563
Department Stores: Chile 217.698 217.698 Department Stores subtotal 217.698 217.698
Shopping Centers: Chile 259.293 259.293 Argentina 208.164 194.283 Peru 54.750 54.750 Shopping Centers subtotal 522.207 508.326 Total 2.562.674 2.503.256
Average selling space per store:
Supermarkets: Chile 2.497 2.490 Argentina 1.769 1.736 Brazil 2.322 2.407 Peru 3.254 3.216 2.214 2.191
Home Improvement Stores: Chile 9.505 10.046 Argentina 7.563 7.521 Colombia 8.577 8.411 8.278 8.386
Department Stores: Chile 7.257 7.257 7.257 7.257
Shopping Centers: Chile 32.412 32.412 Argentina 14.869 16.190 Peru 27.375 27.375 21.759 23.106 26 -
Press Release 2Q 2010
CENCOSUD S.A. OPERATING DATA BY BUSINESS SEGMENT AND COUNTRY (cont)
Six-Month, ended Second Quarter June 30th Average sales per store (in Ch$ millions): 2010 2009 2010 2009
Supermarkets: Chile 2 .515 2 .406 4 .926 4 .759 Argentina 1 .364 1 .204 2 .635 2 .523 Brazil 3 .081 2 .534 5 .810 4 .939 Peru 2 .382 2 .451 4 .695 4 .906 Supermarkets subtotal 2 .012 1 .836 3 .903 3 .699
Home Improvement Stores: Chile 3 .130 2 .528 6 .150 5 .102 Argentina 2 .242 1 .898 4 .411 4 .118 Colombia 2 .180 1 .617 3 .546 3 .585 Home Improvement Stores subtotal 2 .542 2 .107 4 .962 4 .444
Department Stores: Chile 5 .287 4 .085 9 .166 7 .561 Department Stores subtotal 5 .287 4 .085 9 .166 7 .561
Shopping Centers: Chile 1 .551 1 .084 2 .860 2 .702 Argentina 1 .054 8 94 1 .817 1 .891 Peru 1 .151 8 46 2 .256 1 .459 Shopping Centers subtotal 1 .228 9 59 2 .201 2 .147
Sales per square meter (in Ch$ millions):
Supermarkets: Chile 1 ,01 0 ,97 1 ,97 1 ,91 Argentina 0 ,77 0 ,69 1 ,49 1 ,45 Brazil 1 ,33 1 ,05 2 ,50 2 ,05 Peru 0 ,73 0 ,76 1 ,44 1 ,53 Supermarkets subtotal 0 ,91 0 ,84 1 ,76 1 ,69
Home Improvement Stores: Chile 0 ,33 0 ,25 0 ,65 0 ,51 Argentina 0 ,30 0 ,25 0 ,58 0 ,55 Colombia 0 ,25 0 ,19 0 ,41 0 ,43 Home Improvement Stores subtotal 0 ,31 0 ,25 0 ,60 0 ,53
Department Stores: Chile 0 ,73 0 ,56 1 ,26 1 ,04 Department Stores subtotal 0 ,73 0 ,56 1 ,26 1 ,04
Shopping Centers: Chile 0 ,05 0 ,03 0 ,09 0 ,08 Argentina 0 ,07 0 ,06 0 ,12 0 ,12 Peru 0 ,04 0 ,03 0 ,08 0 ,05 Shopping Centers subtotal 0 ,06 0 ,04 0 ,10 0 ,09
Increase (decrease) in Nominal Same Store Sales in LOCAL CURRENCY
Supermarkets: Chile 4,5% 4,1% 3,7% 3,5% Argentina 25,9% 12,2% 23,7% 11,5% Brazil 4,5% -2,1% 7,6% -2,8% Peru -3,3% 0,4% -3,0% 0,2%
Home Improvement Stores: Chile 27,6% -3,2% 27,4% -5,6% Argentina 29,0% -3,2% 25,8% -1,3% Colombia -10,9% -2,1% -5,7% -2,1%
Department Stores: Department Stores 30,8% -7,3% 21,7% -8,6%
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Press Release 2Q 2010
CENCOSUD S.A. CONSOLIDATED INCOME STATEMENTS (Expressed in millions of Chilean pesos of june 30th, 2010 )
Second Quarter Six-Month, ended June 30th 2010 2009 2010 2009 ∆% ∆% MM Ch$ MM Ch$ MM Ch$ MM Ch$
Net revenues 1.487.709 1.311.672 13,4% 2.866.025 2.659.957 7,7% Cost of sales (1.050.699) (965.249) 8,9% (2.057.421) (1.961.390) 4,9% Gross profit 437.010 346.423 26,1% 808.605 698.568 15,8%
Selling and administrative expenses (332.798) (295.546) 12,6% (613.006) (587.201) 4,4% Miscellaneous Other Income Expenses 28.819 2.077 n.a 28.819 2.077 Share of Profit (Loss) from Equity-Accounted Joint Ventures 0 0 n.a 0 0 Share of Profit (Loss) from Equity-Accounted Associates 682 770 -11,5% 1.471 1.565 -6,0% Operating income 133.712 53.725 148,9% 225.890 115.009 96,4% Banking Services Operating income Total Operating Income 133.712 53.725 148,9% 225.890 115.009 96,4%
Other profits (losses) (2.493) 29.183 n.a 4.811 36.842 -86,9% Financial Income 4.241 2.912 45,7% 8.634 4.803 79,8% Finance Costs [for Non-Financial Activities] (19.683) (20.057) -1,9% (39.622) (52.764) -24,9% Income (loss) from foreign exchange variations (672) 2.134 n.a (2.612) (5.180) -49,6% Result of indexation units (7.923) 425 n.a (9.789) 14.913 n.a Non-operating income (loss) (26.530) 14.596 n.a. (38.578) (1.386) -2683,3%
Income before income taxes 107.182 68.321 56,9% 187.312 113.623 64,9% Income taxes (25.018) (5.697) 339,1% (46.540) (14.801) 214,4%
Profit (Loss) After Tax from Continuing Operations 82.164 62.624 31,2% 140.772 98.823 42,4% Profit (Loss) Banking Services 468 8 1.632 (1.409) Profit (Loss) 82.633 62.632 31,9% 142.404 97.413 46,2%
Profit (Loss) Attributable to Equity Holders of Parent 79.395 63.675 24,7% 135.266 97.177 39,2% Profit (Loss) Attributable to Minority Interest 3.238 (1.043) -410,5% 7.138 237 n.a.
Net income per share 36,5 28,6 27,4% 62,9 44,6 41,2% Net income per ADS 547 430 27,4% 943 668 41,2% Number of shares outstanding (in millions) 2.264 2.187 2.264 2.187 Cash Flow Data Net cash provided by (used in): Operating activities 114.711 86.460 32,7% 170.134 172.547 -1,4% Financing activities (72.365) (30.670) 135,9% (191.895) (87.450) 119,4% Investing activities (71.218) (80.343) -11,4% (126.234) (128.142) -1,5% Other Financial Information Capital expenditures 87.170 39.139 122,7% 149.579 97.628 53,2% Depreciation 21.852 28.651 -23,7% 49.684 55.970 -11,2% Revalued 25.105 25.105 EBITDA 127.764 85.404 49,6% 254.301 172.934 47,1%
Financial Ratios Gross margin 29,4% 26,4% 3,0Pt 28,2% 26,3% 2,0Pt Operating margin 9,0% 4,1% 4,9Pt 7,9% 4,3% 3,6Pt Net margin 5,6% 4,8% 0,8Pt 5,0% 3,7% 1,3Pt EBITDA margin 8,6% 6,5% 2,1Pt 8,9% 6,5% 2,4Pt
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Press Release 2Q 2010
CENCOSUD S.A. - SELECTED FINANCIAL DATA BY BUSINESS SEGMENT (Expressed in millions of Chilean pesos of june 30th, 2010 ) Second Quarter Six-Month, ended June 30th 2010 2009 ∆ % 2010 2009 ∆ % MM Ch$ MM Ch$ MM Ch$ MM Ch$ Net Revenues: 1.487.709 1.311.672 13,4% 2.866.025 2.659.957 7,7% Supermarkets 1.062.488 969.381 9,6% 2.060.637 1.953.086 5,5% Home improvement stores 200.829 155.911 28,8% 391.974 328.821 19,2% Department Stores 158.616 122.555 29,4% 274.973 226.830 21,2% Shopping centers 29.472 21.096 39,7% 52.827 47.224 11,9% Financial Services 51.356 59.335 -13,4% 102.549 126.960 -19,2% Others (15.051) (16.607) 9,4% (16.935) (22.964) 26,3% Cost of Sales: (1.050.699) (965.249) 8,9% (2.057.421) (1.961.390) 4,9% Supermarkets (792.492) (744.113) 6,5% (1.543.669) (1.493.575) 3,4% Home improvement stores (140.052) (108.155) 29,5% (273.560) (228.063) 19,9% Department Stores (113.070) (89.264) 26,7% (198.016) (171.872) 15,2% Shopping centers (4.793) (5.051) -5,1% (9.755) (12.258) -20,4% Financial Services (11.422) (30.195) -62,2% (35.955) (67.464) -46,7% Others 11.130 11.530 -3,5% 3.534 11.843 -70,2% Gross Profit: 437.010 346.423 26,1% 808.605 698.568 15,8% Supermarkets 269.996 225.268 19,9% 516.969 459.511 12,5% Home improvement stores 60.776 47.756 27,3% 118.414 100.758 17,5% Department Stores 45.546 33.291 36,8% 76.956 54.958 40,0% Shopping centers 24.679 16.045 53,8% 43.073 34.966 23,2% Financial Services 39.934 29.140 37,0% 66.594 59.496 11,9% Others (3.921) (5.078) 22,8% (13.401) (11.122) -20,5% Selling & Adm. expenses: (332.798) (295.546) 12,6% (613.006) (587.201) 4,4% Supermarkets (211.012) (188.899) 11,7% (393.277) (376.888) 4,3% Home improvement stores (51.625) (44.368) 16,4% (95.987) (89.305) 7,5% Department Stores (34.898) (30.855) 13,1% (66.797) (62.536) 6,8% Shopping centers (7.583) (7.790) -2,7% (9.022) (12.533) -28,0% Financial Services (18.747) (14.783) 26,8% (33.137) (31.040) 6,8% Others (8.933) (8.851) 0,9% (14.786) (14.899) -0,8% Operating Income: 133.712 53.725 148,9% 225.890 115.009 96,4% Supermarkets 58.983 36.369 62,2% 123.692 82.623 49,7% Home improvement stores 9.151 3.388 170,1% 22.427 11.452 95,8% Department Stores 10.649 2.436 337,2% 10.159 (7.578) n.a. Shopping centers 17.096 8.255 107,1% 34.051 22.434 51,8% Financial Services 21.186 14.358 47,6% 33.457 28.456 17,6% Others 16.647 (11.081) n.a. 2.103 (22.378) n.a. EBITDA: 127.764 85.404 49,6% 254.301 172.934 47,1% Supermarkets 74.250 53.604 38,5% 154.952 114.711 35,1% Home improvement stores 13.493 7.831 72,3% 30.720 20.221 51,9% Department Stores 14.429 7.309 97,4% 18.350 1.803 917,9% Shopping centers 17.893 12.300 45,5% 37.837 28.430 33,1% Financial Services 22.567 15.089 49,6% 35.130 29.935 17,4% Others (14.867) (10.729) -38,6% (22.687) (22.165) -2,4% 29 -
Press Release 2Q 2010
CENCOSUD S.A. - SELECTED FINANCIAL DATA BY BUSINESS SEGMENT AND COUNTRY (Expressed in millions of Chilean pesos of june 30th, 2010 )
Second Quarter Six-Month, ended June 30th
2010 2009 2010 2009 ∆ % ∆ % MM Ch$ MM Ch$ MM Ch$ MM Ch$ Supermarkets: Chile 404.942 3 92.241 3,2% 793.078 775.654 2,2% Argentina 343.785 3 10.657 10,7% 664.096 650.812 2,0% Brazil 175.602 1 29.247 35,9% 331.158 251.867 31,5% Peru 138.160 1 37.237 0,7% 272.305 274.753 -0,9% Subtotal 1.062.488 969.381 9,6% 2 .060.637 1 .953.086 5,5% Home Improvement Stores: Chile 8 4.513 63.197 33,7% 166.052 127.556 30,2% Argentina 107.596 91.097 18,1% 211.737 197.680 7,1% Colombia 8 .720 1.617 439,1% 14.185 3 .585 295,6% Subtotal 2 00.829 155.911 28,8% 391.974 328.821 19,2% Department Stores: Chile 158.616 1 22.555 29,4% 274.973 226.830 21,2% Subtotal 1 58.616 122.555 29,4% 274.973 226.830 21,2% Shopping Centers: Chile 1 2.410 8.672 43,1% 22.883 21.617 5,9% Argentina 1 4.760 10.731 37,5% 25.433 22.688 12,1% Peru 2 .302 1.693 36,0% 4 .511 2 .918 54,6% Subtotal 29.472 21.096 39,7% 52.827 47.224 11,9% Financial Services: Chile 4 7.974 55.158 -13,0% 94.369 118.164 -20,1% Argentina 1 .206 3.323 -63,7% 4 .427 6 .916 -36,0% Brazil 1 .738 854 103,6% 3 .315 1 .881 76,3% Peru 438 - 4 38 - Subtotal 51.356 59.335 -13,4% 102.549 126.960 -19,2% Others: Chile - 13.930 -13.520 3,0% -21.188 -24.251 -12,6% Argentina -1.519 -3.087 -50,8% 3 .856 1 .287 199,7% Peru 397 - 3 97 - Subtotal -15.051 -16.607 -9,4% -16.935 -22.964 -26,3% TOTAL NET REVENUES: 1.487.709 1.311.672 13,4% 2.866.025 2.659.957 7,7% Supermarkets: Chile -310.683 -296.723 4,7% -602.739 -592.386 1,7% Argentina -236.857 -240.423 -1,5% -476.363 -493.341 -3,4% Brazil -137.326 -103.080 33,2% -257.192 -199.642 28,8% Peru -107.627 -103.888 3,6% -207.375 -208.205 -0,4% Subtotal - 792.492 - 744.113 6,5% -1.543.669 - 1.493.575 3,4% Home Improvement Stores: Chile - 62.486 -46.232 35,2% -122.414 -92.758 32,0% Argentina - 71.475 -60.694 17,8% -141.619 -132.748 6,7% Colombia -6.092 -1.230 395,4% - 9.527 - 2.558 272,5% Subtotal - 140.052 - 108.155 29,5% - 273.560 - 228.063 19,9% Department Stores: Chile -113.070 -89.264 26,7% -198.016 -171.872 15,2% Subtotal - 113.070 -89.264 26,7% - 198.016 - 171.872 15,2% Shopping Centers: Chile -390 - 598 -34,7% - 2.308 - 1.800 28,2% Argentina -4.471 -1.425 213,7% - 6.153 - 5.822 5,7% Peru 69 -3.028 -102,3% - 1.293 - 4.636 -72,1% Subtotal -4.793 - 5.051 -5,1% - 9.755 -12.258 -20,4% Financial Services: Chile - 10.616 -28.788 -63,1% -33.656 -64.816 -48,1% Argentina -743 -1.407 -47,2% - 2.235 - 2.648 -15,6% Brazil - - - - Peru -64 - -64 - Subtotal -11.422 -30.195 -62,2% -35.955 -67.464 -46,7% Others: Chile 8 .309 8.802 -5,6% 5 .787 12.969 -55,4% Argentina 2 .871 2.729 5,2% - 2.203 - 1.126 95,6% Brazil - - - - Peru -50 - -50 - Subtotal 11.130 11.531 -3,5% 3.534 11.843 -70,2% TOTAL COST OF SALES: -1.050.699 -965.248 8,9% -2.057.421 -1.961.390 4,9% Supermarkets: Chile 9 4.259 95.518 -1,3% 190.339 183.268 3,9% Argentina 106.928 70.234 52,2% 187.733 157.471 19,2% Brazil 3 8.276 26.168 46,3% 73.967 52.225 41,6% Peru 3 0.533 33.349 -8,4% 64.930 66.548 -2,4% Subtotal 2 69.996 225.268 19,9% 516.969 459.511 12,5% Home Improvement Stores: Chile 2 2.027 16.965 29,8% 43.638 34.798 25,4% Argentina 3 6.121 30.403 18,8% 70.118 64.932 8,0% Colombia 2 .628 388 577,8% 4 .658 1 .028 353,2% Subtotal 60.776 47.756 27,3% 118.414 100.758 17,5% Department Stores: Chile 4 5.546 33.291 36,8% 76.956 54.958 40,0% Subtotal 45.546 33.291 36,8% 76.956 54.958 40,0% Shopping Centers: Chile 1 2.020 8.075 48,9% 20.575 19.817 3,8% Argentina 1 0.288 9.306 10,6% 19.280 16.866 14,3% Peru 2 .371 -1.336 -277,5% 3 .218 - 1.717 -287,4% Subtotal 24.679 16.045 53,8% 43.073 34.966 23,2% Financial Services: Chile 3 7.359 26.371 41,7% 60.712 53.348 13,8% Argentina 463 1.916 -75,8% 2 .192 4 .268 -48,6% Brazil 1 .738 854 103,6% 3 .315 1 .881 76,3% Peru 374 - 3 74 - Subtotal 39.934 29.140 37,0% 66.594 59.496 11,9% Others: Chile -5.621 -4.718 19,1% -15.402 -11.282 36,5% Argentina 1 .352 - 359 -476,9% 1 .653 1 60 930,9% Brazil - - - - Peru 347 - 3 47 - Subtotal -3.921 - 5.077 -22,8% -13.401 -11.122 20,5% TOTAL GROSS PROFIT: 437.010 346.424 26,1% 808.605 698.568 15,8% 10
10 The Company restated reimbursement of expenses that were previously accounted as revenues of the Shopping Center division into lower costs of goods sold, in accordance of IFRS standards. 30 -
Press Release 2Q 2010
CENCOSUD S.A. CONSOLIDATED BALANCE SHEETS (Expressed in millions of Chilean pesos of june 30th, 2010 )
2010 MM Ch$ Current Assets: Cash and Cash Equivalents 127.144 Financial assets at fair value through profit or loss - Available-for-Sale Financial Assets, Current - Other Financial Assets, Current 108.585 Other Non-Financial Assets, Current 22.266 Trade and Other Receivables, Net, Current 593.755 Accounts receivable from related parties, Current - Inventories 523.823 Biological Assets, Current - Hedging Assets, Current - Assets Pledged as Collateral Subject to Sale or Repledging, Current - Prepayments, Current - Current Tax Receivables - Tax Assets, Current 31.004 Assets, Current, Total 1 .406.578 Non-Current Assets: Available-for-Sale Financial Assets, Non-Current - Other Financial Assets, Non-Current 9.368 Other Non-Financial Assets, Non-Current 21.040 Trade and Other Receivables, Net, Non-Current 55.011 Accounts receivable from related parties, Non-Current - Equity Method Accounted Investments in Associates 29.753 Other Equity Method Accounted Investments - Intangible Assets, Net 461.896 Capital gain 720.487 Property, Plant and Equipment, Net 1 .796.623 Biological Assets, Non-Current - Investment Property 1 .078.296 Deferred Tax Assets 105.208 Assets Pledged as Collateral Subject to Sale or Repledging, Non-Current - Hedging Assets, Non-Current - Prepayments, Non-Current - Cash Restricted or Pledged - Other Assets, Non-Current - Assets, Non-Current, Total 4 .277.681 Banking Assets: Loans and receivables to customers 169.821 Otros activos 24.652 Banking Assets, Total 194.473
TOTAL ASSETS 5.878.732
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Press Release 2Q 2010
CENCOSUD S.A. CONSOLIDATED BALANCE SHEETS (Expressed in millions of Chilean pesos of june 30th, 2010 )
2010 MM Ch$ Current Liabilities: Interest-Bearing Borrowings, Current - Non-Interest-Bearing Borrowings, Current - Other Financial Liabilities, Current 214.274 Trade and Other Payables, Current 1 .067.277 Notes and accounts payable to related companies, Current 1.360 Provisions, Current 13.377 Current Tax Payables 34.870 Other Liabilities, Current 44.083 Deferred Income, Current - Post-Employment Benefit Obligation, Current - Hedging Liabilities, Current - Accrued Liabilities, Total - Other Non-Financial Liabilities, Current 59.367 Liabilities, Current, Total 1 .434.609 Non-Current Liabilities: Interest-Bearing Borrowings, Non-Current - Non-Interest-Bearing Borrowings, Non-Current - Other Financial Liabilities, Non-Current 1 .189.639 Trade and Other Payables, Non-Current 4.382 Cuentas por Pagar a Entidades Relacionadas, No Corriente - Provisions, Non-Current 30.040 Deferred Tax Liabilities 269.749 Other Liabilities, Non-Current - Deferred Income, Non-Current - Post-Employment Benefit Obligation, Non-Current - Hedging Liabilities, Non-Current - Other Non-Financial Liabilities, Non current 34.172 Liabilities, Non-Current, Total 1 .527.981 Banking Services Liabilities: Deposits and term deposits 148.658 Other liabilities 20.259 Banking Liabilities , Total 168.917 Equity: Issued Capital 927.804 Treasury Shares - Issued Premium 477.341 Other Reserves -81.346 Retained Earnings (Accumulated Losses) 1 .338.188 Equity Attributable to Equity Holders of Parent 2 .661.988 Minority Interest 85.238 Equity, Total 2 .747.225
TOTAL EQUITY AND LIABILITIES 5 .878.732
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