CENCOSUD S.A. (CNCO) IPO

We estimate that the net proceeds to us from the global offering, after 
deducting the underwriters’ discounts and commissions to be paid to the 
international underwriters (not including the incentive fee) and estimated 
expenses incurred in connection with a global offering of 91,304,348 shares
of common stock, calculated using an exchange rate of Ch$499.59=US$1.00 on 
June 21, 2012 assuming that the over-allotment option is not exercised, will 
be approximately Ch$231,650 million (US$464 million). An increase (decrease) 
of $1.00 in the price per share of common stock would increase (decrease) the 
net proceeds in connection with the global offering by Ch$46,477 million 
(US$93 million) (assuming the over-allotment option is not exercised and 
calculated using the exchange rate of Ch$499.59=US$1.00 on June 21, 2012). 

We estimate that the net proceeds from the preemptive rights offerings would 
be approximately Ch$358,800 million (US$718 million) (based on the waiver by 
our Controlling Shareholders of their rights with respect to 105,000,000 
shares of common stock subject to the preemptive rights offering and assuming
the exercise in full of the remaining preemptive subscription rights 
calculated using the offering price per share of Ch$2,600). We cannot assure 
you that the preemptive rights offering will be fully or even partially 
subscribed by other shareholders entitled to participate in the preemptive 
rights offering. Consequently, our net proceeds may be limited to the net 
proceeds of the global offering. 

We intend to use (i) approximately U.S.$245 million of the net proceeds from 
the global offering and the preemptive rights offering to repay all of our 
outstanding indebtedness under our Santander Short-Term Loan (as defined 
below), (ii) approximately U.S.$480 million to acquire the remaining 38.636% 
of Jumbo Retail Argentina shares currently held by UBS AG London Branch 
(“UBS London”), (iii) to repay approximately U.S.$200 million in short-term
indebtedness owed to an affiliate of Banco Bilbao Vizcaya Argentaria, S.A.
under our BBVA Short-Term Loan (as defined below), (iv) to repay amounts drawn
under our committed credit facility in the aggregate amount of U.S.$750 
million, with an affiliate of, J.P. Morgan and an affiliate of Morgan Stanley,
which amounts drawn totaled U.S.$250 million as of May 7, 2012, and (v) the
remainder, if any, for capital expenditures, working capital and general 
corporate purposes. 

On January 2, 2012, we acquired 100% of the capital stock of Prezunic. In 
order to finance our acquisition of Prezunic, on January 2, 2012 we entered 
into a Ch$127.73 billion short-term facility with Banco Santander Chile, as 
lender (“Santander Short-Term Loan”). The Santander Short-Term Loan matures 
on December 28, 2012, and has an annual interest rate equal to the Tasa 
Bancaria (the Banking Interest Rate, or “TAB”), established by the Asociación 
de Bancos e Instituciones Financieras (the Association of Banks and Financial 
Institutions, or “ABIF”), plus 0.4%. 

On March 13, 2012, we entered into a short-term credit facility for Ch$100,000
million (approximately U.S.$200 million) with an affiliate of Banco Bilbao 
Vizcaya Argentaria, S.A., as lender, to finance our investing activities, 
including capital expenditures of U.S.$75 million and working capital needs 
of U.S.$25 million, and also to refinance certain short-term liabilities 
amounting to U.S.$100 million, including repayment of overdraft lines (“BBVA 
Short-Term Loan”). The BBVA Short-Term Loan bears interest at an annual rate 
based on the Índice de Cámara Promedio, an indexed interest rate established 
by ABIF, and has a maturity date of March 13, 2013. 

On April 27, 2012, we entered into a U.S.$750 million committed credit 
facility with J.P. Morgan Chase National Association, an affiliate of J.P. 
Morgan, Morgan Stanley Bank, N.A., an affiliate of Morgan Stanley, The Bank o
f Tokyo—Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank Ltd., as lenders, (the 
“J.P. Morgan Credit Facility”) in order to finance our short-term funding 
requirements, including capital expenditures, interest expense and tax 
obligations. The J.P. Morgan Credit Facility bears an interest rate of LIBOR, 
as adjusted for statutory reserve requirements for eurocurrency liabilities, 
plus a margin of 1.25% for the first six months, 1.50% for the following
three months, and 1.75% thereafter. The J.P. Morgan Credit Facility matures 
on March 13, 2013. 

In the event that substantially less than the maximum amount of proceeds from 
the preemptive rights offering are obtained, the Company will apply the funds
received from the global offering to pay amounts outstanding under the 
Santander Short-Term Loan, first, with any remaining proceeds to be applied 
pro rata to repay amounts outstanding under the J.P. Morgan Credit Facility 
and the BBVA Short-Term Loan. Any proceeds then remaining will be applied to 
acquire the Jumbo Retail Argentina shares currently held by UBS London, 
with the remainder, if any, to be used for general corporate purposes. The 
Company plans to fund any shortfall in the amounts of proceeds expected from 
the preemptive rights offering with additional indebtedness. 

It is likely that our capital expenditures will vary significantly from our 
current projections based on timing of investments and changes in market 
opportunities.

The retail industry is highly competitive and characterized by high inventory 
turnover, controlled operating expenses and small profit margins as 
a percentage of sales. Earnings primarily depend upon the maintenance of high 
per-store sales volumes, efficient product purchasing and distribution and 
cost-effective store operations and inventory management. Advertising and 
promotional expenses are necessary to maintain our competitive position in 
our major markets. We compete principally on the basis of price and, to 
a lesser extent, location, selection of merchandise, quality of merchandise 
(in particular perishables), service, store conditions and promotions. We 
face strong competition from international and domestic operators of 
supermarkets, department stores, home improvement stores and shopping centers,
including Casino, Carrefour, Wal-Mart, and Falabella. 

The following table provides a brief overview of our competitive position in 
each of our principal markets as of December 21, 2011: 

                      Chile     Argentina     Brazil        Peru     
    
Supermarkets           2 nd       2 nd       1 st(1)        1 st       
Department stores      2 nd          —            —            —      
Home improvement       2 nd       1 st            —            —      
Shopping centers       2 nd       2 nd            —            — 

Source: ASACH, ABRAS, Nielsen, competitors’ press releases, and company
estimates. 

(1)     In the northeast region of Brazil.