Cencosud Brazil announces the purchase of the wholesale chain GIGA, in the State of Sao Paulo

• With this, Cencosud enters the largest market in Brazil, and South America
• The purchase price for 100% of GIGA was R$500MM, equivalent to an EV/Sales multiple of 0.33x

Santiago, Chile, May 5, 2022.- Cencosud (BCS: CENCOSUD), a leading retailer in South America with operations in Chile, Argentina, Brazil, Peru, and Colombia, announced today that its subsidiary Cencosud Brasil signed an agreement with the shareholders of GIGA, for the acquisition of 100% of said company.

GIGA is a Cash&Carry (Wholesale) supermarket founded in 2009, with 10 stores located in Greater Sao Paulo and has 1 Distribution Center, as of December 31, it had more than 1,300 employees. The stores average 4,500 m2 and are well located, close to high traffic avenues. Gross revenues for the last 12 months to March 2022 reached R$1.5 billion.

The purchase price is R$500 million (approximately USD100 million), and may be adjusted based on the working capital existing in GIGA at the date the transaction becomes effective.

With this transaction, Cencosud enters the largest market in Brazil and South America, directly with the format that grows the most in Brazil and is the most resilient to recessive macroeconomic contexts.

According to Matías Videla, General Manager of Cencosud,

"we are very excited to be able to enter the largest market in Latin America, such as Sao Paulo, with a format that we know will have synergies with the stores we currently operate in Brazil". Regarding the new company, the executive highlighted that "GIGA is a highly valued brand in Sao Paulo, with high growth potential and with a local management that has demonstrated successful execution of this format".

According to the Guidance that Cencosud reported in the first quarter of the year, Videla highlighted that

"this demonstrates our commitment and confidence in operations in Brazil, it also expands the asset base in a format that is the most successful in the country and that we will continue to enhance in the future".

Sebastian Los, General Manager of Cencosud Brasil, in turn, pointed out that

"this transaction is a milestone for our operation in Brazil, we firmly believe that GIGA will enhance us with the correct format, in a state full of opportunities. This is the beginning of a new stage of growth, which our great Cencosud Brasil team will know how to boost."

As is usual in these types of agreements, the realization of the purchase is subject to the fulfillment of certain conditions, among them, obtaining authorization from the Administrative Council for Economic Defense of Brazil.