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Cencosud S.A.

Cencosud is one of the largest and most prestigious retail conglomerates in Latin America with operations in Argentina, Brazil, Chile and Peru. It uses a successful multiformat strategy that today gives employment to almost one hundred thousand people.

Brands under Cencosud
34 Jumbo hypermarkets, 120 Santa Isabel supermarkets; 239 Disco, Plaza Vea, Super Vea y Mini Sol supermarkets; 50 Easy home improvement stores; 23 Paris department stores; 20 shopping malls and 49 offices of Banco Paris bank, totaling a sales area of 1.8 million square meters, or 19,375,038.75 square feet. It has more than 4.3 million active credit card accounts, issued under the brands Más Jumbo, Más Easy and Más Paris

“To be the most profitable and prestigious retailer in Latin America, based on our excellent quality of service, our respect for the communities with which we live and the commitment of our team of collaborators to the basic tenets of our company: vision, challenge, entrepreneurship and perseverance.”

Its operations extend to businesses such as supermarkets, home centers, department stores, shopping malls and financial services, making it the most diversified company for Latin American capitals in the Southern Cone and with the greatest square meter offer. Cencosud also boasts other lines of business that complement its central operation, which include an insurance brokerage, family entertainment centers and a travel agency. All these receive excellent recognition and prestige among consumers, being well known for their quality, high level of service and customer satisfaction.

Main Objective
Cencosud’s main objective is to become the largest retailer in Latin America, bringing its maxims of quality of service, excellence and commitment to hundreds of thousands of clients. To achieve this task the company has been focused on an ambitious plan of internationalization since the late 1980s. With this base and thirty seven years of experience, Cencosud broadened its horizons during 2007 by starting operations in Colombia as well as acquiring two large supermarket and hypermarket chains in Peru and Brazil.

Strategy and Focus
The company’s strategy is to maintain its leadership in the markets where it operates through synergies and competitive advantages achieved as a result of its integrated business model. Management’s focus will be on improving operating margins, integrating its recent acquisitions and consolidating its leadership position in its current markets * Take advantage of commercial synergies

* Import office opened in China to coordinate import activities across all countries and businesses * Enhance operating and logistics metrics
* IT system platform integration

Objectives of Each Business

* Integration of recently acquired operations (Wong & GBarbosa) * Work on operating and commercial synergies among businesses * Growth will closely mirror economic growth
* In Brazil, growth is focused on the Northeast region.
* In Peru, increase presence in key markets outside Lima using the Metro format.

Home centers
* Increase presence in Colombia through Joint Venture with Casino * Consolidate presence in Argentina and Chile
* Improve All-In and EBITDA margins
Department Stores
* Provide clients with a unique selection of products
* Consolidate market share position
* Continue with margin improvement

Real Estate
* Finish shopping centers under construction in Chile and Argentina * Continue work in 1st stage of the Costanera Center project in 2009 * Focus on business of developer and operator

Financial Services
* Consolidate financial products in Chile, and remodel Argentina, Peru and Brazil credit card business * Strengthen insurance brokerage business in Chile and Argentina, initiate operations in Brazil and Peru * Strengthen loyalty program

Risk Factors
* Slowdown in...
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