Cencosud's Adjusted EBITDA Grew by 13.1% in 2022, Reaching US$1.817 Billion

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• As reported to the Financial Market Commission (CMF), the Company achieved a double-digit Adjusted EBITDA margin due to a successful and consistent strategy focused on efficiency and profitable growth.

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Santiago, March 2, 2023.- Cencosud closed 2022 with record revenues and Adjusted EBITDA, according to the financial results reported to the Financial Market Commission (CMF). The company recorded revenues of US$16.358 billion, an increase of 25.8% compared to the previous year, and a 13.1% increase in its Adjusted EBITDA in the same period, which amounted to US$1.817 billion. With this, Cencosud achieves a double-digit EBITDA margin for the ninth consecutive quarter, and double-digit revenue growth for the seventh consecutive quarter..

The growth of Adjusted EBITDA is explained by the successful execution of the strategy aimed at deepening its exposure to the retail markets and formats with the highest growth, resilience, and profitability. In this way, Cencosud has carried out the transformation of 65 stores to convenience and Cash&Carry formats since 2021, and has achieved increases in market share compared to an already successful 2021 in the Supermarkets business in Chile (+230 bps), Argentina (+31 bps), and Brazil (+46 bps). All this was achieved in conjunction with the reduction of inventory days in the business units of Chile compared to the end of September 2022 (Supermarkets -2.5 days, Department Stores -27.4 days, and Home Improvement -8.5 days).

This has allowed the Company to consolidate its solid financial position, which is reflected in the rating upgrade from BBB- to BBB granted by Fitch Ratings in recent months.

Other notable figures relate to the generation of sales tickets and customer flow to the stores, with more than 614 million tickets, representing an increase of 18.5% compared to the previous year. Of these, 23 million corresponded to online purchases, a growth of 7.8%.

"These results are mainly attributable to the sustained resilience of Cencosud's core businesses, the ongoing execution of a series of strategies aimed at increasing its profitability, and the recent investments in organic and inorganic growth made by the Company."

explained Matias Videla, CEO of Cencosud

In terms of Financial Strengthening, one of the Company's five strategic pillars, it maintained the level of debt in healthy parameters, with a Gross Leverage of 3.25x -mainly associated with the increase in debt due to the acquisitions of The Fresh Market (TFM) and GIGA Atacado- which according to the Guidance that Cencosud released in January, will reach 3x during 2023.

Regarding Organic and Inorganic Growth, another of the Company's strategic pillars, in addition to the acquisitions of TFM and GIGA, 37 new stores were opened and the sales area increased by 35,500 m2. In addition, changes were made in 9 stores, including 6 conversions to Cash&Carry format in Brazil and Peru, and 3 changes of flag, to better meet the preferences of customers in each of these locations.

In terms of Innovation and New Trends, the third strategic pillar of Cencosud, despite the high comparison bases of 2021, and a 2022 characterized by greater mobility and 100% open physical stores, the online penetration rate remained in double digits, reaching 10.1% of sales forthe year. In the same line, it continued to strengthen and diversify its digital ecosystem with the expansion of Cencosud Media to Argentina, Peru, and Colombia, the consolidation of the Jumbo Prime E-Commerce platform, and the installation of its new technology HUB in Uruguay. Regarding the latter, the CEO of Cencosud, Matias Videla, highlighted this initiative as a milestone in the history of the Company.

"Our new technology HUB in Uruguay will allow us to incorporate new talent into the organization and will accelerate the development of the digital ecosystem to deliver an increasingly complete and efficient omnichannel experience to our customers throughout the region"

Meanwhile, in Sustainability, Cencosud's regional Food Rescue program -which is part of a series of initiatives for the non-waste of food- allowed to expand its benefits and impact on the economic, social and environmental areas in the Latin American countries where the Company operates. In figures, more than 2,151 tons were delivered between January and December 2022, an increase of 2% compared to the same period in the previous year.

4Q22 Results

In the fourth quarter of the year, the Company achieved revenues of US$4.696 billion, an increase of 26.5% compared to the same period of the previous year, partially explained by the results of the two new supermarket chains acquired during the year, TFM and GIGA.

In turn, Adjusted EBITDA growth was 12.0%, reaching an Adjusted EBITDA margin of 11.2%. Meanwhile, it generated a net profit of US$274 million during the period, which represents an improvement of 22% compared to 4Q21.

During the last quarter, Private Labels contributed significantly to the profitability of the Company. Their participation in total sales during 4Q22 was 16.3%, an increase of more than 240 bps compared to the same period of the previous year. In quantitative terms, Private Label sales reached US$727 million during the period, a growth of 53% or US$253 million versus 4Q21.