UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington , D.C. 20549
 
FORM 6 - K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 under
the Securities Exchange Act of 1934
 
For the month of November , 2015
 
Commission File Number 001-35575
 
Cencosud S.A.
(Translation of registrant’s name into English)
 
Av. Kennedy 9001, Piso 6
Las Condes, Santiago
Chile
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F    x 	    	Form 40 F   o 	

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   o 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   o 

 

 
 
This report on Form 6-K is being furnished for the purpose of providing a copy of the registrant’s unaudited condensed consolidated interim financial statements as of and for the nine month period ended September 30, 2015 (the “Consolidated Financial Statements”). The  Consolidated Financial Statements are presented in Chilean pesos and prepared in accordance with International Financial Reporting Standards.

The attachment contains forward-looking statements.  The registrant desires to qualify for the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, and consequently is hereby filing cautionary statements identifying important factors that could cause the registrant’s actual results to differ materially from those set forth in such forward-looking statements.
 
The registrant’s forward-looking statements are based on the registrant’s current expectations, assumptions, estimates and projections about the registrant and its industry.  These forward-looking statements can be identified by words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “is/are likely to,” “may,” “plan,” “should,” “would,” or other similar expressions.
 
The forward-looking statements included in the attached involve various risks and uncertainties, including, among others:  (i) changes in general economic, business or political or other conditions in Chile, Argentina, Brazil, Peru, Colombia or elsewhere in Latin America or global markets; (ii) changes in capital markets in general that may affect policies or attitudes towards investing in Chile, Argentina, Brazil, Peru, Colombia or securities issued by companies in such countries; (iii) the monetary and interest rate policies of the Central Banks of Chile, Argentina, Brazil, Peru and Colombia; (iv) high levels of inflation or deflation; (v) unanticipated increases in financing and other costs or our inability to obtain additional debt or equity financing on attractive terms; (vi) movements in interest and/or foreign exchange rates, and movements in equity prices or other rates or prices; (vii) changes in, or failure to comply with, applicable regulations or changes in taxes; (viii) loss of market share or changes in competition and pricing environments in the industries in which the Company operates; (ix) difficulties in successfully integrating recent and future acquisitions into the Company’s operations; (x) the Company’s inability to hedge certain risks economically; (xi) changes in consumer spending and saving habits; (xii) implementation of new technologies; (xiii) limitations on the Company’s ability to open new stores and operate them profitably; (xiv) difficulties in completing proposed store openings, expansions or remodeling; (xv) difficulties in acquiring and developing land in Chile, Argentina, Brazil, Peru or Colombia, and restrictions on opening new large stores in any such countries; and (xvi) the factors discussed under the heading “Risk Factors” as well as risks included in the Company’s other filings and submissions with the United States Securities and Exchange Commission.
 
Although the registrant believes that its expectations expressed in these forward-looking statements are reasonable, its expectations may turn out to be incorrect.  The registrant’s actual results could be materially different from its expectations.  In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in the attached might not occur, and the registrant’s future results and its performance may differ materially from those expressed in these forward-looking statements due to, including, but not limited to, the factors mentioned above.  Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements.

 

 
 
The forward-looking statements made in the attached relate only to events or information as of the date on which the statements are made in the attached.  The registrant undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 	Cencosud S.A.	 	
 	 	 	 	
 	By:	/s/ Sebastián Rivera Martínez	 	
 	Name:	Sebastián Rivera Martínez	 	
 	Title:	 Legal Manager	 	
 	 	 	 	
Date: November 30, 2015

 

 
Cencosud S.A. and subsidiaries, condensed consolidated interim statements of financial position
 
 	 	 	 	 	As of	 	
Assets	 	Note	 	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	 	 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	(unaudited)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	 	 	 	223,685,467	 	 	 	218,871,793	 	
Other financial assets, current	 	 	5	 	 	 	135,163,485	 	 	 	47,778,995	 	
Other non-financial assets, current	 	 	 	 	 	 	18,867,015	 	 	 	10,646,492	 	
Trade receivables and other receivables	 	 	6	 	 	 	792,983,173	 	 	 	781,576,754	 	
Receivables due from related entities, current	 	 	 	 	 	 	8,950,636	 	 	 	1,371,016	 	
Inventory	 	 	8	 	 	 	1,186,100,187	 	 	 	1,094,609,583	 	
Current tax assets	 	 	 	 	 	 	87,809,197	 	 	 	54,196,417	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current assets sets held for sale	 	 	 	 	 	 	2,453,559,160	 	 	 	2,209,051,050	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Assets held for sale	 	 	21	 	 	 	-	 	 	 	793,416,576	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current assets	 	 	 	 	 	 	2,453,559,160	 	 	 	3,002,467,626	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current assets	 	 	 	 	 	 	 	 	 	 	 	 	
Other financial assets, non-current	 	 	5	 	 	 	488,451,066	 	 	 	302,479,598	 	
Other non-financial assets, non-current	 	 	 	 	 	 	34,346,210	 	 	 	33,873,417	 	
Trade receivable and other receivables, non-current	 	 	6	 	 	 	30,995,448	 	 	 	34,777,355	 	
Equity method investment	 	 	 	 	 	 	246,761,752	 	 	 	52,247,914	 	
Intangible assets other than goodwill	 	 	9	 	 	 	408,449,686	 	 	 	400,542,180	 	
Goodwill	 	 	10	 	 	 	1,423,125,798	 	 	 	1,682,348,563	 	
Property, plant and equipment	 	 	11	 	 	 	2,851,164,032	 	 	 	3,009,728,456	 	
Investment property	 	 	12	 	 	 	1,732,195,691	 	 	 	1,663,592,396	 	
Non-current tax assets,	 	 	 	 	 	 	11,004,061	 	 	 	43,047,543	 	
Deferred income tax assets	 	 	 	 	 	 	574,985,648	 	 	 	491,398,181	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total non-current assets	 	 	 	 	 	 	7,801,479,392	 	 	 	7,714,035,603	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	 	 	 	 	 	10,255,038,552	 	 	 	10,716,503,229	 	
 
The accompanying notes are an integral part of these interim consolidated financial statements.

1

 
Cencosud S.A. and subsidiaries, condensed consolidated interim statements of financial position

 	 	 	 	 	As of	 	
Net equity and liabilities	 	Note	 	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	 	 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	(unaudited)	 	 	 	 	

Current liabilities	 	 	 	 	 	 	 	 	 	
Other financial liabilities, current 	 	 	13	 	 	 	472,297,703	 	 	 	739,507,129	 	
Trade payables and other payables	 	 	 	 	 	 	1,697,119,751	 	 	 	1,957,738,268	 	
Payables to related entities, current	 	 	 	 	 	 	20,018,639	 	 	 	3,302,006	 	
Provisions and other liabilities	 	 	14	 	 	 	18,390,461	 	 	 	15,197,558	 	
Current income tax liabilities	 	 	 	 	 	 	59,215,881	 	 	 	60,615,912	 	
Current provision for employee benefits	 	 	 	 	 	 	121,198,334	 	 	 	102,513,612	 	
Other non-financial liabilities, current	 	 	 	 	 	 	28,243,564	 	 	 	43,104,370	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current liabilities	 	 	 	 	 	 	2,416,484,333	 	 	 	2,921,978,855	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities held for sale	 	 	21	 	 	 	-	 	 	 	216,791,432	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total current liabilities	 	 	 	 	 	 	2,416,484,333	 	 	 	3,138,770,287	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-current liabilities	 	 	 	 	 	 	 	 	 	 	 	 	
Other financial liabilities,	 	 	13	 	 	 	2,917,309,472	 	 	 	2,431,032,096	 	
Trade accounts payables	 	 	 	 	 	 	3,509,521	 	 	 	6,134,069	 	
Provisions and other liabilities	 	 	14	 	 	 	103,411,476	 	 	 	104,765,779	 	
Deferred income tax liabilities	 	 	 	 	 	 	662,887,971	 	 	 	674,881,877	 	
Non-current income tax liabilities	 	 	 	 	 	 	-	 	 	 	-	 	
Other non–financial liabilities, non–current	 	 	 	 	 	 	60,257,528	 	 	 	69,433,310	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total non-current liabilities	 	 	 	 	 	 	3,747,375,968	 	 	 	3,286,247,131	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	 	 	 	 	6,163,860,301	 	 	 	6,425,017,418	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	
Paid-in capital	 	 	15	 	 	 	2,321,380,936	 	 	 	2,321,380,936	 	
Retained earnings	 	 	 	 	 	 	2,185,356,551	 	 	 	2,166,548,572	 	
Issuance premium	 	 	 	 	 	 	526,633,344	 	 	 	526,633,344	 	
Other reserves	 	 	 	 	 	 	(942,440,077	)	 	 	(722,245,257	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity attributable to controlling shareholders	 	 	 	 	 	 	4,090,930,754	 	 	 	4,292,317,595	 	
Non-controlling interest	 	 	 	 	 	 	247,497	 	 	 	(831,784	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	 	 	 	 	 	 	4,091,178,251	 	 	 	4,291,485,811	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity and liabilities	 	 	 	 	 	 	10,255,038,552	 	 	 	10,716,503,229	 	
 
The accompanying notes are an integral part of these interim consolidated financial statements.

2

 
Cencosud S.A. and subsidiaries condensed consolidated interim income statements (unaudited)
 
Statements of  profit and loss	 	Note	 	 	9/30/2015	 	 	9/30/2014	 	
 	 	 	 	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities 	 	 	18	 	 	 	7,942,483,366	 	 	 	7,696,196,556	 	
Cost of Sales 	 	 	16	 	 	 	(5,669,627,905	)	 	 	(5,650,384,555	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Profit	 	 	 	 	 	 	2,272,855,461	 	 	 	2,045,812,001	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income by function	 	 	16	 	 	 	65,366,780	 	 	 	36,399,486	 	
Distribution cost	 	 	16	 	 	 	(20,275,644	)	 	 	(18,707,492	)	
Administrative expenses	 	 	16	 	 	 	(1,849,722,767	)	 	 	(1,651,647,696	)	
Other expenses by function	 	 	16	 	 	 	(122,779,162	)	 	 	(125,809,935	)	
Other gain (losses), net	 	 	16	 	 	 	(61,712,948	)	 	 	(4,866,921	)	
Operating profit	 	 	 	 	 	 	283,731,720	 	 	 	281,179,443	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Finance income	 	 	16	 	 	 	12,634,622	 	 	 	5,288,062	 	
Finance expenses	 	 	16	 	 	 	(180,753,287	)	 	 	(129,811,628	)	
Participation in profit or loss of equity method associates	 	 	 	 	 	 	8,771,176	 	 	 	3,162,700	 	
Exchange differences	 	 	16	 	 	 	(107,142,867	)	 	 	(20,753,742	)	
(Losses) from indexation	 	 	16	 	 	 	(15,895,638	)	 	 	(26,368,932	)	
Profit before tax	 	 	 	 	 	 	1,345,726	 	 	 	112,695,903	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	17	 	 	 	33,859,507	 	 	 	(33,577,622	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit from continuing operations	 	 	 	 	 	 	35,205,233	 	 	 	79,118,281	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit from discontinued operations	 	 	22	 	 	 	9,244,460	 	 	 	10,630,486	 	
Profit attributable to controlling shareholders 	 	 	 	 	 	 	43,259,998	 	 	 	89,527,578	 	
Profit attributable to non–controlling shareholders 	 	 	 	 	 	 	1,189,695	 	 	 	221,189	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit	 	 	 	 	 	 	44,449,693	 	 	 	89,748,767	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share from continued operations	 	 	 	 	 	 	12.0	 	 	 	27.9	 	
Basic earnings per share from discontinued operations	 	 	 	 	 	 	3.3	 	 	 	3.8	 	
Diluted earnings per share from continued operations	 	 	 	 	 	 	12.0	 	 	 	27.8	 	
Diluted earnings per share from discontinued operations	 	 	 	 	 	 	3.3	 	 	 	3.7	 	
 
The accompanying notes are an integral part of these interim consolidated financial statements.

3

 
Cencosud S.A. and subsidiaries condensed consolidated interim statements of comprehensive income (unaudited)
 
 	 	9/30/2015	 	 	9/30/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Profit	 	 	44,449,693	 	 	 	89,748,767	 	
 	 	 	 	 	 	 	 	 	
Other comprehensive income
Items that will never be reclassified to profit and loss	 	 	 	 	 	 	 	 	
Re-measurements of defined benefit liability (asset)	 	 	-	 	 	 	57,917	 	
Total OCI that will never be reclassified to profit and loss	 	 	-	 	 	 	57,917	 	
 	 	 	 	 	 	 	 	 	
Items that are or may be reclassified to profit and loss	 	 	 	 	 	 	 	 	
Foreign currency translation adjustments	 	 	(229,642,157	)	 	 	224,647,708	 	
Cash flow hedge	 	 	10,291,446	 	 	 	(9,494,870	)	
      Total Items that are or may be reclassified to profit and  loss	 	 	(219,350,711	)	 	 	215,152,838	 	
Other comprehensive income, before taxes.	 	 	(219,350,711	)	 	 	215,152,838	 	
 	 	 	 	 	 	 	 	 	
Income tax related to re-measurement of defined benefit liability (asset)	 	 	-	 	 	 	(19,692	)	
Total income tax that will never be reclassified to profit and loss	 	 	-	 	 	 	(19,692	)	

Income tax related to cash flow hedge	 	 	(2,834,315	)	 	 	997,470	 	
Total income tax that are or may be reclassified to profit and loss	 	 	(2,834,315	)	 	 	997,470	 	
 	 	 	 	 	 	 	 	 	
Total other comprehensive income and expense	 	 	(222,185,026	)	 	 	216,188,533	 	
 	 	 	 	 	 	 	 	 	
Total comprehensive income	 	 	(177,735,333	)	 	 	305,937,300	 	
 	 	 	 	 	 	 	 	 	
Income attributable to	 	 	 	 	 	 	 	 	
Owners of the Company	 	 	(178,814,614	)	 	 	305,700,288	 	
Non-controlling Shareholders	 	 	1,079,281	 	 	 	237,012	 	
 	 	 	 	 	 	 	 	 	
Total comprehensive income	 	 	(177,735,333	)	 	 	305,937,300	 	
 
The accompanying notes are an integral part of these interim consolidated financial statements.

4

 
Cencosud S.A. and subsidiaries
Condensed consolidated interim statement of changes in net equity
For the nine months ended September 30, 2015 (unaudited)
 
Statement of changes in
equity ThCh$	 	 	Paid-in
capital	 	 	 	 
Issuance
premiums	 	 	 	Translation
 	 	 	 	Cash flow Hedge
 	 	 	 	Actuarial Gain(loss) reserves	 	 	 	Share based payments reserves	 	 	 	Other reserves	 	 	 	Total
reserves	 	 	 	Changes in
retained earnings
(Accumulated
losses)	 	 	 	Changes in net
equity
attributable to parent
company
shareholders	 	 	 	Change in
non-
controlling
interest	 	 	 	Total equity	 	
Opening balance as of January 1, 2015	 	 	2,321,380,936	 	 	 	526,633,344	 	 	 	(696,546,714	)	 	 	13,202,220	 	 	 	117,926	 	 	 	13,458,245	 	 	 	(52,476,934	)	 	 	(722,245,257	)	 	 	2,166,548,572	 	 	 	4,292,317,595	 	 	 	(831,784	)	 	 	4,291,485,811	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Changes in equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Net income	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	43,259,998	 	 	 	43,259,998	 	 	 	1,189,695	 	 	 	44,449,693	 	
Other comprehensive income	 	 	-	 	 	 	-	 	 	 	(229,531,743	)	 	 	7,457,131	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(222,074,612	)	 	 	-	 	 	 	(222,074,612	)	 	 	(110,414	)	 	 	(222,185,026	)	
Total Comprehensive income 	 	 	-	 	 	 	-	 	 	 	(229,531,743	)	 	 	7,457,131	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(222,074,612	)	 	 	43,259,998	 	 	 	(178,814,614	)	 	 	1,079,281	 	 	 	(177,735,333	)	
Share issuance	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Dividends	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(22,669,751	)	 	 	(22,669,751	)	 	 	-	 	 	 	(22,669,751	)	
Stock option (see 20)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,879,792	 	 	 	-	 	 	 	1,879,792	 	 	 	-	 	 	 	1,879,792	 	 	 	-	 	 	 	1,879,792	 	
Decrease due to changes in ownership interest without a loss of control (see 15.4)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1,782,268	)	 	 	(1,782,268	)	 	 	-	 	 	 	(1,782,268	)	
Total transactions with owners	 	 	-	 	 	 	-	 	 	 	(229,531,743	)	 	 	7,457,131	 	 	 	-	 	 	 	1,879,792	 	 	 	-	 	 	 	(220,194,820	)	 	 	18,807,979	 	 	 	(201,386,841	)	 	 	1,079,281	 	 	 	(200,307,560	)	
Total Changes in equity	 	 	-	 	 	 	-	 	 	 	(229,531,743	)	 	 	7,457,131	 	 	 	-	 	 	 	1,879,792	 	 	 	-	 	 	 	(220,194,820	)	 	 	18,807,979	 	 	 	(201,386,841	)	 	 	1,079,281	 	 	 	(200,307,560	)	
Ending balance, as of September 30, 2015	 	 	2,321,380,936	 	 	 	526,633,344	 	 	 	(926,078,457	)	 	 	20,659,351	 	 	 	117,926	 	 	 	15,338,037	 	 	 	(52,476,934	)	 	 	(942,440,077	)	 	 	2,185,356,551	 	 	 	4,090,930,754	 	 	 	247,497	 	 	 	4,091,178,251	 	

 
5

Cencosud S.A. and subsidiaries
Consolidated statement of changes in net equity
For the nine months ended September 30, 2014 (unaudited)

Statement of changes in
equity ThCh$	 	Paid-in
capital	 	 	Issuance
premiums	 	 	Translation
reserves	 	 	Hedge
reserves	 	 	Actuarial Gain(loss) reserves	 	 	Share based payments reserves	 	 	Other reserves	 	 	Total
reserves	 	 	Changes in
retained earnings
(Accumulated
losses)	 	 	Changes in net
equity
attributable to parent 
company
shareholders	 	 	Change in
non-
controlling
interest	 	 	Total
equity	 	
Opening balance as of January 1, 2014	 	 	2,321,380,936	 	 	 	526,633,344	 	 	 	(615,316,151	)	 	 	20,525,986	 	 	 	402,512	 	 	 	10,636,164	 	 	 	(52,479,121	)	 	 	(636,230,610	)	 	 	2,049,483,333	 	 	 	4,261,267,003	 	 	 	100,086	 	 	 	4,261,367,089	 	

Changes in equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Net income	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	89,527,578	 	 	 	89,527,578	 	 	 	221,189	 	 	 	89,748,767	 	
Other comprehensive income	 	 	-	 	 	 	-	 	 	 	224,631,885	 	 	 	(8,497,400	)	 	 	38,225	 	 	 	-	 	 	 	-	 	 	 	216,172,710	 	 	 	-	 	 	 	216,172,710	 	 	 	15,823	 	 	 	216,188,533	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Comprehensive income	 	 	-	 	 	 	-	 	 	 	224,631,885	 	 	 	(8,497,400	)	 	 	38,225	 	 	 	-	 	 	 	-	 	 	 	216,172,710	 	 	 	89,527,578	 	 	 	305,700,288	 	 	 	237,012	 	 	 	305,937,300	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Share issuance	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	 	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	 	 	
Dividends	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	 	 	 	 	(32,735,773	)	 	 	(32,735,773	)	 	 	 	 	 	 	(32,735,773	)	
Stock option (see 20)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,840,503	 	 	 	-	 	 	 	1,840,503	 	 	 	-	 	 	 	1,840,503	 	 	 	(27,069,987	)	 	 	(25,229,484	)	
Decrease due to changes in ownership interest without a loss of control (see 15.4)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total transactions with owners	 	 	-	 	 	 	-	 	 	 	224,631,885	 	 	 	(8,497,400	)	 	 	38,225	 	 	 	1,840,503	 	 	 	-	 	 	 	218,013,213	 	 	 	56,791,805	 	 	 	274,805,018	 	 	 	(26,832,975	)	 	 	247,972,043	 	

Total Changes in equity	 	 	-	 	 	 	-	 	 	 	224,631,885	 	 	 	(8,497,400	)	 	 	38,225	 	 	 	1,840,503	 	 	 	-	 	 	 	218,013,213	 	 	 	56,791,805	 	 	 	274,805,018	 	 	 	(26,832,975	)	 	 	247,972,043	 	
Ending balance, as of September 30, 2014	 	 	2,321,380,936	 	 	 	526,633,344	 	 	 	(390,684,266	) 	 	 	12,028,586	 	 	 	440,737	 	 	 	12,476,667	 	 	 	(52,479,121	) 	 	 	(418,217,397	) 	 	 	2,106,275,138	 	 	 	4,536,072,021	 	 	 	(26,732,889	) 	 	 	4,509,339,132	 	

The accompanying notes are an integral part of these consolidated financial statements.

6

 
Cencosud S.A. and subsidiaries
Consolidated statements of cash flows
 	 	For the nine months ended September 30,	
 	 	Unaudited	
 	 	2015	 	2014	
 	 	ThCh$	 	ThCh$	
Cash flows from (used in) operating activities	 	 	 	 	
 	 	 	 	 	
Types of revenues from operating activities	 	 	 	 	
Revenue from sale of goods & provision of services	 	 	9,686,891,373	 	 	9,120,849,375	 		
Other operating activity revenue	 	 	5,648,459	 	 	8,627,226	 		
 	 	 	 	 	 	 	 	 	
Types of payments	 	 	 	 	 	 	 	 	
Payments to suppliers for supply of goods & services	 	 	(7,662,029,654	)	 	(7,613,372,837	)		
Payments to and on behalf of personnel	 	 	(1,179,376,094	)	 	(1,011,716,350	)		
Other operating payments	 	 	(464,491,392	)	 	(356,773,765	)		
Interest paid	 	 	-	 	 	(2,491,002	)		
Interest received	 	 	-	 	 	1,288,683	 		
Taxes paid	 	 	(54,370,923	)	 	(50,626,638	)		
Other cash inflows (outflows)	 	 	(110,595,508	)	 	(8,444,568	)		
Cash flows from operating activities (continuing operations)	 	 	(3,146,205	)	 	197,701	 		
Cash flows from operating activities (discontinued operations)	 	 	(107,449,303	)	 	(8,642,269	)		
 	 	 	 	 	 	 	 	 	
Net cash flow from operating activities	 	 	221,676,261	 	 	87,340,124	 		
 	 	 	 	 	 	 	 	 	
Cash flows from (used in) investment activities	 	 	 	 	 	 	 	 	
Cash flows from loss of control in subsidiaries classified as investment activities	 	 	169,845,372	 	 	-	 		
Cash flows used to acquire non-controlled interests	 	 	(30,132,967	)	 	-	 		
Proceeds from sales of property, plant & equipment	 	 	17,266,457	 	 	186,000	 		
Purchases of property, plant & equipment	 	 	(128,076,475	)	 	(172,915,790	)		
Purchases of intangible assets	 	 	(24,298,390	)	 	(15,785,339	)		
Collection from related entities	 	 	290,824,586	 	 	-	 		
Dividends received	 	 	1,331,981	 	 	2,569,709	 		
Interest received	 	 	2,899,662	 	 	214,054	 		
Other cash inflows (outflows)	 	 	(97,152,060	)	 	18,803,284	 		
Cash flows from operating activities (continuing operations)	 	 	(96,401,789	)	 	19,397,477	 		
Cash flows from operating activities (discontinued operations)	 	 	(750,271	)	 	(594,193	)		
 	 	 	 	 	 	 	 	 	
Net cash flow (used in) investment activities	 	 	202,508,166	 	 	(166,928,082	)		
 	 	 	 	 	 	 	 	 	
Cash flows from (used in) financing activities	 	 	 	 	 	 	 	 	
Proceeds from paid in capital	 	 	-	 	 	-	 		
Proceeds from borrowing at long–term	 	 	730,388,986	 	 	424,677,664	 		
Proceeds from borrowing at short–term	 	 	2,125,026,071	 	 	4,997,623,504	 		
Total loan proceeds from borrowing	 	 	2,855,415,057	 	 	5,422,301,168	 		
 	 	 	 	 	 	 	 	 	
Proceeds from borrowings granted by related parties	 	 	-	 	 	-	 		
Repayments of borrowing	 	 	(3,119,149,753	)	 	(5,140,882,316	)		
Dividends paid	 	 	(35,639,263	)	 	(35,639,263	)		
Interest paid	 	 	(184,392,521	)	 	(153,633,643	)		
Other cash outflows	 	 	43,049,819	 	 	(66,092,603	)		
Cash flows from operating activities (continuing operations)	 	 	7,791,123	 	 	24,145,541	 		
Cash flows from operating activities (discontinued operations)	 	 	35,258,696	 	 	(90,238,144	)		
 	 	 	 	 	 	 	 	 	
Net cash flow from financing activities	 	 	(440,716,661	)	 	26,053,343	 		
Net (decrease) increase in cash and cash equivalents before the effect of variations	 	 	(16,532,234	)	 	(53,534,615	)		
 	 	 	 	 	 	 	 	 	
Effects of variations in the exchange rate on cash and cash equivalents	 	 	21,345,908	 	 	6,398,812	 		
 	 	 	 	 	 	 	 	 	
Net (decrease) increase in cash and cash equivalents	 	 	4,813,674	 	 	(47,135,803	)		
Cash and cash equivalents at the beginning of the year	 	 	218,871,793	 	 	171,711,625	 		
Cash and cash equivalents at the end of the period	 	 	223,685,467	 	 	124,575,822	 		
 	 	 	 	 	 	 	 	 	
Incuded in cash and cash equivalents per the statement of financial situation	 	 	223,685,467	 	 	103,034,705	 		
Incuded in the assets of the disposal group	 	 	-	 	 	21,541,117	 		

The accompanying notes are an integral part of these consolidated financial statements.

7

 
Cencosud S.A. and subsidiaries
Notes to the unaudited consolidated interim financial statements

1	General information	
 
Cencosud S.A. (hereinafter “Cencosud Group,” “the Company,” “the Holding,” “the Group”) taxpayer ID number 93.834.000-5 is a public corporation with an indefinite life, with its legal residence at Avda. Kennedy 9001, 4th floor, Las Condes, Santiago, Chile.
 
Cencosud S.A. is a public company registered with the Chilean Superintendence of Securities and Insurance (SVS), under No.743, which shares are quoted in Chile on the Stock Brokers-Stock Exchange (Valparaíso), the Chilean Electronic Stock Exchange and the Santiago Stock Exchange; it is also quoted on the United States of America Stock Exchange (“NYSE”) in New York in the form of American Depositary Receipts (ADRs).
 
Cencosud S.A. is a retail operator in Latin America, which has active operations in Chile, Argentina, Brazil, Colombia and Peru, where it has developed a successful multi-format and multi-brand strategy reaching sales of ThCh$ 7,942,483,366 as of September 30, 2015.
 
During the year ended September 30, 2015, the Company employed an average of 146,720 employees, ending with a total number of 139,162 employees.
 
The Company’s operations include supermarkets, hypermarkets, home improvement stores, department stores, shopping centers, as well as real estate development and financial services, which makes it the most diversified retail company of Latin-American capital in South America with the biggest offering of square meters, it caters to the consumption needs of over 180 million customers.
 
Additionally, it operates other lines of business that complement the main retail operations, such as insurance brokerage, a travel agency, customer loyalty services and family entertainment centers. All of these services have gained recognition and prestige among customers, with brands that excel at quality and service.
 
The Company splits its equity among 2,828,723,963 shares of a single series whose main shareholders are the following:
 
Major shareholders as of September 30, 2015	 	Shares	 	 	Interest	 	
 	 	 	 	 	%	 	
Inversiones Quinchamali Limitada	 	 	573,754,802	 	 	 	20.283	%	
Inversiones Latadia Limitada	 	 	550,823,211	 	 	 	19.473	%	
Inversiones Tano Limitada	 	 	457,879,800	 	 	 	16.187	%	
Banco de Chile por cuenta de terceros	 	 	165,932,301	 	 	 	5.866	%	
Banco Itau por cuenta de inversionistas	 	 	127,834,663	 	 	 	4.519	%	
Horst Paulmann Kemna	 	 	70,336,573	 	 	 	2.487	%	
Fondo de Pensiones Habitat C	 	 	62,020,909	 	 	 	2.193	%	
Fondo de Pensiones Provida C	 	 	56,826,301	 	 	 	2.009	%	
Banco Santander - JP Morgan	 	 	52,113,347	 	 	 	1.842	%	
Fondo de Pensiones Habitat B	 	 	43,597,783	 	 	 	1.541	%	
Fondo de Pensiones Capital C	 	 	37,947,208	 	 	 	1.342	%	
Fondo de Pensiones Cuprum C	 	 	36,165,680	 	 	 	1.279	%	
Otros accionistas	 	 	593,491,385	 	 	 	20.981	%	
 	 	 	 	 	 	 	 	 	
Total	 	 	2,828,723,963	 	 	 	100.000	%	

8

 
The Cencosud group is controlled by the Paulmann family, as detailed below:
 
Interest of Paulmann family as of September 30, 2015	 	Interest	 	
 	 	%	 	
Inversiones Quinchamali Limitada	 	 	20.283	%	
Inversiones Latadia Limitada	 	 	19.473	%	
Inversiones Tano Limitada	 	 	16.187	%	
Horst Paulmann Kemna	 	 	2.487	%	
Manfred Paulmann Koepfer	 	 	0.492	%	
Peter Paulmann Koepfer	 	 	0.498	%	
Heike Paulmann Koepfer	 	 	0.492	%	
Sucesión de doña Helga Koepfer Schoebitz	 	 	0.115	%	
Inversiones Alpa Limitada	 	 	0.007	%	
 	 	 	 	 	
Total	 	 	60.032	%	
 
The consolidated interim financial statements of Cencosud group as of September 30, 2015, were approved by the Board of Directors in a session held on November 27th, 2015.
 
2	Summary of the main accounting policies	
 
2.1	Presentation basis	
 
The consolidated financial statements of Cencosud S.A. have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
 
These condensed consolidated interim financial statements for the nine months ended September 30, 2015 have been prepared in accordance with IAS 34, “Interim financial reporting”. These do not include all the information required for a complete set of IFRS financial statements. However, the condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2014, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
 
2.2                          New and amended standards adopted by the group
 
(a) New standards, amendments and interpretations adopted by the group.
 
The following standards have been adopted by the group for the first time for the financial year beginning on  January 1 st , 2014; however none of the new amendments and pronouncements had a significant  impact on the group´s financial statements:
 
IFRIC 21, ‘Levies’, sets out the accounting for an obligation to pay a levy if that liability is within the scope of IAS 37 ‘Provisions’. The interpretation addresses what the obligating event is that gives rise to pay a levy and when a liability should be recognized. The Group is not currently subjected to significant levies so the impact on the Group is not material.
 
Amendment to IAS 32, ‘Financial instruments: Presentation’ on offsetting financial assets and financial liabilities. This amendment clarifies that the right of set-off must not be contingent on a future event. It must also be legally enforceable for all counterparties in the normal course of business, as well as in the event of default, insolvency or bankruptcy. The amendment also considers settlement mechanisms. The amendment did not have a significant effect on the group financial statements.
 
Amendments to IAS 36, ‘Impairment of assets’, on the recoverable amount disclosures for non-financial assets. This amendment removed certain disclosures of the recoverable amount of CGUs which had been included in IAS 36 by the issue of IFRS 13.
 
Amendment to IAS 39, ‘Financial instruments: Recognition and measurement’ on the novation of derivatives and the continuation of hedge accounting. This amendment considers legislative changes to ‘over-the-counter’ derivatives and the establishment of central counterparties. Under IAS 39 novation of derivatives to central counterparties would result in discontinuance of hedge accounting. The amendment provides relief from discontinuing hedge accounting when novation of a hedging instrument meets specified criteria. The amendment did not have a significant effect on the group financial statements.

9

 
(b) New standards, amendments and interpretations not yet adopted.
 
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after January 1 st 2014, and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group, except the following set out below:
 
IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortized cost, fair value through OCI and fair value through P&L. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in OCI not recycling. There is now a new expected credit losses model that replaces the incurred loss impairment model used in IAS 39. For financial liabilities there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. IFRS 9 relaxes the requirements for hedge effectiveness by replacing the bright line hedge effectiveness tests. It requires an economic hedging instrument and for the ‘hedged ratio’ to be the same as the one management actually use for risk management purposes. Contemporaneous documentation is still required but is different to that currently prepared under IAS 39. The standard is effective for accounting periods beginning on or after 1 January 2018. Early adoption is permitted. The group is yet to assess IFRS 9’s full impact.
 
IFRS 15, ‘Revenue from contracts with customers’ deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction contracts’ and related interpretations. The standard is effective for annual periods beginning on or after 1 January 2017 and earlier application is permitted. The group is assessing the impact of IFRS 15.
 
Amendment to IFRS 10 "consolidated financial statements" IFRS and IAS 28 "Investments in associates and joint ventures". Published in September 2014. This amendment addresses an inconsistency between the requirements of the IFRS 10 and IAS 28 in the treatment of the sale or the contribution of goods between an investor and the associate or joint venture. The main consequence of the amendments is that recognizes a gain or loss completes when the transaction involves a business (is in a subsidiary or not) and a gain or loss partial when the transaction involves assets that do not constitute a business, even if these assets are in a subsidiary.

Amendment to IFRS 10 "consolidated financial statements" IFRS and IAS 28 "Investments in associates and joint ventures". Published in December 2014. The amendment clarifies on the application of the exception from consolidation to investment entities and their subsidiaries. The amendment to IFRS 10 clarifies on the exception of consolidation that is available to entities in group structures that include investment entities. The amendment to IAS 28 allows, to an entity which is not an entity's investment, but it has a stake in an associate or joint venture that is an entity of investment, a choice of accounting policy in the application of the equity method. The entity may choose to keep the measurement of fair value applied by the associate or joint venture that is an entity of investment, or instead, perform a consolidation at the level of the entity's investment (associate or joint venture). Early application is permitted.

Amendment to IAS 1 "presentation of financial statements" Published in December 2014 and is effective for fiscal years beginning on January 1, 2016. The amendment clarifies the guide for the application of IAS 1 on materiality and aggregation, presentation of subtotals, structure of the financial statements and disclosure of accounting policies. The modifications are part of initiatives on disclosures of the IASB. Early adoption is permitted.
 
There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.
 
2.3	Accounting policies	
 
The accounting policies adopted are consistent with those of the previous financial year, except as described below. (See note 23).
 
Income taxes for interim periods are accounted for using the tax rate that would be applicable to expected total annual income before taxes.

10

 
2.4	Changes in accounting policies	
 
The Company assess accounting policies frequently, and decide to change any of the adopted standards only if the change: i) is required by a new IFRS ; or ii) results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity's financial position, financial performance, or cash flows.
 
Except for the change in the accounting policy described in note 23, no other changes in accounting policies have been applied by the Company during 2015.
 
3	Risk management policies	
 
The Company is exposed to a variety of financial risks: market risk (including interest rate risk and foreign exchange rate risk), credit risk and liquidity risk.
 
The condensed interim consolidated financial statements do not include all financial risk management information and disclosure required in the annual financial statements, and should be read in conjunction with the Company’s annual consolidated financial statements as of December 31, 2014.
 
There have been no changes in the risk management policies and procedures between the dates of the annual and these interim consolidated financial statements as of September 30, 2015.
 
3.1.	Valuation methodology (initially and subsequently).	
 
Financial instruments that have been accounted for at fair value in the statement of financial position as of September 30, 2015 and December 31, 2014 have been measured using the methodologies as set forth in IFRS 13. These methodologies applied for each class of financial instruments are classified using the following hierarchy:
 
Level I: The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the group is the current bid price.
 
Level II: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
 
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
 
Specific valuation techniques used to value financial instruments include:
 
·  	Quoted market prices or dealer quotes for similar instruments;	
 
·  	The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves;	
 
·  	Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments	
 
·  	The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to present value;	
 
·  	Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.	
 
Level III: Inputs for assets or liabilities that are not based on observable market data.

11

 
Group valuation process
 
The Group has established control framework with respect to the measurements of fair value. This includes a valuation team that has an overall responsibility for overseeing all significant fair value measurements, including level 3 fair values, and reports directly to the regional CFO.
 
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence from third parties to support the conclusion that such valuations meet the requirements of IFRS, including the fair value hierarchy in which such valuation should be classified.
 
Taking into account the nature and characteristics of the instruments maintained in its portfolio, the Company classifies its valuation methodologies in the three aforementioned levels. Currently, the valuation process considers internally developed valuation techniques, for which parameters and observable market inputs are used, mainly using the present value methodology.
 
As of September 30, 2015 and December 31, 2014, the Group has no financial instruments that have been valuated using inputs assessed as level III, however, the procedures above are in line with the Group policies regarding the estimation and review of the inputs used in fair-valuing financial asset and recurrent and non-recurrent non-financial assets.

The tables below show the total value of each type of the financial instruments valued under each category, and its respective percentage, as of September 30, 2015 and December 31, 2014:

September 2015
 	 	 	 	Valuation method	 	Amortized	 	
Classification	Group	Type	 	Value	 	 	Level I	 	Level II	Level III	 	cost	 	
 	 	 	 	ThCh$	 	 	%	 	%	%	 	%	 	
At fair value through profit or loss	Mutual funds	Mutual fund shares	 	 	37,232,353	 	 	 	100	 	 	 	 	 	 	
 	Other financial Instrument	Highly liquid financial instruments	 	 	97,931,132	 	 	 	100	 	 	 	 	 	 	
 	 	Other financial investments	 	 	6,971,713	 	 	 	100	 	 	 	 	 	 	
Credit cards and trade Receivables, net	Cash and cash equivalents	Cash balances	 	 	31,547,735	 	 	 	 	 	 	 	 	 	100	 	
 	 	Bank balances	 	 	97,302,185	 	 	 	 	 	 	 	 	 	100	 	
 	 	Short-term deposits	 	 	94,835,547	 	 	 	 	 	 	 	 	 	100	 	
 	Receivables 
 	Receivables due from Bretas	 	 	3,661,638	 	 	 	 	 	 	 	 	 	100	 	
 	 	Credit card and trade receivables, net (1)	 	 	823,978,621	 	 	 	 	 	 	 	 	 	100	 	
 	Receivables from related entities	Related entities, current	 	 	8,950,636	 	 	 	 	 	 	 	 	 	100	 	
Financial liabilities and payables	Bank loans (2)	Current	 	 	302,890,435	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	286,034,877	 	 	 	 	 	 	 	 	 	100	 	
 	Bonds payable (2)	Current	 	 	44,727,349	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	2,559,825,439	 	 	 	 	 	 	 	 	 	100	 	
 	Other loans (lease)	Current	 	 	2,793,733	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	30,746,994	 	 	 	 	 	 	 	 	 	100	 	
 	Deposits and saving accounts	Current	 	 	107,952,029	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	27,799,484	 	 	 	 	 	 	 	 	 	100	 	
 	Debt purchase affiliates	Current	 	 	12,463,969	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	4,478,022	 	 	 	 	 	 	 	 	 	100	 	
 	Letters of credit	Non-Current	 	 	8,424,656	 	 	 	 	 	 	 	 	 	100	 	
 	Other financial liabilities	Current	 	 	1,417,115	 	 	 	 	 	 	 	 	 	100	 	
 	Trade payables	Current	 	 	1,534,301,481	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	652,733	 	 	 	 	 	 	 	 	 	100	 	
 	Withholding taxes	Current	 	 	162,818,270	 	 	 	 	 	 	 	 	 	100	 	
 	 	Non-Current	 	 	2,856,788	 	 	 	 	 	 	 	 	 	100	 	
 	Payables to related entities	Current	 	 	20,018,639	 	 	 	 	 	 	 	 	 	100	 	
Hedges	Hedging derivatives	Cash flow hedging liability	 	 	53,073	 	 	 	 	 	100	 	 	 	 	 	
 	 	Cash flow hedging asset	 	 	414,808,265	 	 	 	 	 	100	 	 	 	 	 	
 	 	Fair value hedging asset	 	 	63,009,450	 	 	 	 	 	100	 	 	 	 	 	

12

 
(1)  	The fair value of current receivables is not significantly different from their book value, since the effect of the discount rate is not significant.	
 
(2)  	The fair value has been determined using discounted cash flows valuation models. Meaningful inputs include the discount rate used to reflect the credit risk associated with Cencosud SA, these inputs are level II type, within the fair value hierarchy.	
 
December 2014
 	 	 	 	Valuation method	 	Amortized cost	 	
Classification	Group	Type	 	Value	 	 	Level I	 	 	Level II	 	Level III	 		 	
 	 	 	 	ThCh$	 	 	%	 	 	%	 	%	 	%	 	
At fair value through profit or loss	 
Mutual funds	 
Mutual fund shares	 	 	37,328,837	 	 	 	100	 	 	 	 	 	 	 	 	
 	 
Derivatives 	 
Forward	 	 	3,844,213	 	 	 	 	 	 	 	100	 	 	 	 	 	
 	 
Shares 	 
Shares	 	 	42,780	 	 	 	100	 	 	 	 	 	 	 	 	 	
 	 
Other financial Instrument	 
Highly liquid financial instruments	 	 	6,563,165	 	 	 	100	 	 	 	 	 	 	 	 	 	
 	 	 
Other financial investments	 	 	210,306	 	 	 	100	 	 	 	 	 	 	 	 	 	
 
Credit cards and trade Receivables, net	 
Cash and cash equivalents	 
Cash balances	 	 	44,859,904	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Bank balances	 	 	129,874,187	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Short-term deposits	 	 	44,137,702	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Receivables	 
Receivables due from Bretas	 	 	16,938,176	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Credit card and trade receivables, net (1)	 	 	816,354,109	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Receivables from related entities	 
Related entities, current	 	 	1,371,016	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 
Financial liabilities and payables	 
Bank loans (2)	 
Current	 	 	629,083,332	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current 
 	 	 	695,092,202	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Bonds payable (2)	 
Current	 	 	50,539,046	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current	 	 	1,656,384,016	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Other loans
(lease)	 
Current	 	 	2,671,208	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current	 	 	31,558,878	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Debt purchase affiliates	 
Current	 	 	25,542,999	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current	 	 	19,681,149	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 
Other financial liabilities	 
Current	 	 	5,939,949	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Trade payables	 
Current	 	 	1,743,224,689	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current	 	 	810,120	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Withholding taxes	 
Current	 	 	214,513,579	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 	 
Non-Current	 	 	5,323,949	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	 
Payables to related entities	 
Current	 	 	3,302,006	 	 	 	 	 	 	 	 	 	 	 	 	100	 	
 
Hedges
 	 
Hedging derivatives	 
Cash flow hedging liability	 	 	382,754	 	 	 	 	 	 	 	100	 	 	 	 	 	 	
 	 	 
Cash flow hedging asset	 	 	220,058,333	 	 	 	 	 	 	 	100	 	 	 	 	 	 	
 	 	 
Fair value hedging asset	 	 	65,272,783	 	 	 	 	 	 	 	100	 	 	 	 	 	 	
 
(1)  	The fair value of current receivables is not significantly different from their book value, since the effect of the discount rate is not significant.	
 
(2)  	The fair value has been determined using discounted cash flows valuation models. Meaningful inputs include the discount rate used to reflect the credit risk associated with Cencosud SA, these inputs are level II type, within the fair value hierarchy.	
 
Instruments classified as Level II correspond mainly to interest rate and cross currency swaps that have been valued by discounting the future cash flows stipulated in the contract for both the asset and liability component of each instrument. The structure of interest rates used to bring the future cash flows to present value is constructed based on the currency of each component and inferred from transactions involving risk-free instruments in the relevant market.

13

 
The Group recognizes transfers between levels of the fair value hierarchy at the end the reporting period during the change has occurred. As of September 30, 2015 and December 31, 2014, there have been no transfers between level I and II, and transfers out of level III to another level of fair value.
 
3.2.	Reclassifications.	
 
As of the end of this reporting period, the Company has not reclassified any entries in the aforementioned financial instrument categories.
 
3.3.	Liquidity risk.	
 
Compared to year end, there was no material change in the contractual undiscounted cash out flows for financial liabilities, except for the issuance of an international bond worth USD $1 BN on February 2015.
 
The $1 BN notes due 2025 (USD $650 M), and due 2045 (USD $350 M), has been used to prepay indebtedness in Chile and Brazil, extending Cencosud´s debt maturity profile and improving its overall liquidity. The first tier of the issuance (USD $650 M) was used to pay in advance local liabilities in Chile, mainly used to cover the USD 400  million bridge loan entered in October 2014 to prepay the Chilean bonds BCENC A, BCENC C and BCENC D,  which used to have a covenant related the restriction to lose control of Cencosud Administradora de Tarjetas (CAT, our Financial Retail) and no waiver was granted from the bondholders. Said waiver was needed to complete the sale of 51% of CAT to Scotiabank, which was completed on May 2015. The second tier of the new issuance (USD $350 M) was used to pay indebtedness in Brazil.
 
3.4                   Fair value of financial assets and liabilities measured at amortized cost.
 
In order to estimate the fair value of debt instruments not accounted for at amortized cost, the Company has estimated the cash flows from variable interest obligations using relevant swap curves. The structure of interest rates used to bring the future cash flows to present value is constructed based on the currency of each obligation and corresponds to the risk-free curve in the relevant market plus a credit spread inferred from the initial contractual conditions of each obligation.
 
The fair value of the following financial assets and liabilities approximate their carrying amount:
 
·	Trade and other receivables	
 
·	Other current financial assets	
 
·	Cash and cash equivalents (excluding bank overdrafts)	
 
·	Trade and other payables	
 
·	The following assets and liabilities within the held-for-sale disposal group:	
 
–  	Cash and cash equivalents	
 
–  	Other current assets	
 
–  	Trade and other payables	
 
–  	Borrowings	
 
–  	Other current liabilities	
 
4	Estimates, judgment or criteria applied by management	

The estimates and criteria used are continuously assessed and are based on prior experience and other factors, including the expectation of occurrence of future events that are considered reasonable according to the circumstances.
 
The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
 
In preparing these condensed interim financial statements, the significant judgments made by management in applying the group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31 st 2014, with the exception of changes in estimates that are required in determining the provision for income taxes, and the change of the policy of recognition of the measurement to fair value of financial derivatives (see note 17 and note 23 respectively).

14

 
5	Other financial assets, current and non-current	
 
The composition of this item as of September 30, 2015 and December 31, 2014 includes the following:
 	 	As of	 	
Other financial assets, current	 	September 30,
2015	 	 	December 31,
2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Shares 	 	 	-	 	 	 	42,780	 	
Mutual Funds Shares(*) 	 	 	37,232,353	 	 	 	37,328,837	 	
Hedging derivatives 	 	 	-	 	 	 	3,844,213	 	
Highly liquid financial instruments 	 	 	97,931,132	 	 	 	6,563,165	 	
Total other financial assets, current 	 	 	135,163,485	 	 	 	47,778,995	 	
 
 	 	As of	 	
Other financial assets, non-current	 	September 30,
2015	 	 	December 31,
2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Hedging derivatives 	 	 	477,817,715	 	 	 	285,331,116	 	
Financial investments Long term 	 	 	6,971,713	 	 	 	210,306	 	
Account receivable due from Bretas	 	 	3,661,638	 	 	 	16,938,176	 	
Total other financial assets, non-current 	 	 	488,451,066	 	 	 	302,479,598	 	
 
(*)	Mutual Funds shares are mainly fixed rate investments.	
 
6	Trade receivables and other receivables	

Trade receivables and other receivables as of September 30, 2015 and December 31, 2014 are as follows:
 
 	 	As of	 	
Trade receivables and other receivables net, current	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Trade receivables net, current 	 	 	140,657,732	 	 	 	190,629,343	 	
Credit card receivables net, current 	 	 	350,267,416	 	 	 	272,626,749	 	
Other receivables, net, current	 	 	301,266,183	 	 	 	317,357,759	 	
Letters of credit loans	 	 	791,842	 	 	 	962,903	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	792,983,173	 	 	 	781,576,754	 	

 	 	As Of	
Trade receivables and other receivables, net, non-current	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Trade receivables net, non-current 	 	 	 383,303	 	 	 	 960,006	 	
Credit card receivables net, non-current 	 	 	4,872,230	 	 	 	2,800,679	 	
Other receivables, net, non-current	 	 	16,074,183	 	 	 	20,614,649	 	
Letters of credit loans	 	 	9,665,732	 	 	 	10,402,021	 	
Total	 	 	30,995,448	 	 	 	34,777,355	 	

 
 	 	As of	 	
Trade receivables and other receivables, gross, current	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Trade receivables gross, current 	 	 	161,153,331	 	 	 	210,196,220	 	
Credit card receivables gross, current 	 	 	367,760,087	 	 	 	287,514,053	 	
Other receivables gross, current 	 	 	312,850,438	 	 	 	328,546,822	 	
Letters of credit loans 	 	 	953,882	 	 	 	962,904	 	
Total 	 	 	842,717,738	 	 	 	827,219,999	 	

15

 
 
 	 	As of	 	
Trade receivables and other receivables, gross, non-current	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Trade receivables gross, non-current 	 	 	383,303	 	 	 	960,006	 	
Credit card receivables gross, non-current 	 	 	4,872,230	 	 	 	2,800,679	 	
Other receivables gross, non-current 	 	 	16,074,183	 	 	 	20,614,649	 	
Letters of credit loans, non-current 	 	 	9,665,732	 	 	 	10,402,021	 	
Total 	 	 	30,995,448	 	 	 	34,777,355	 	

 	 	As of	 	
Trade receivables and other receivables close to maturity	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Less than three months 	 	 	580,588,413	 	 	 	606,401,384	 	
Between three and six months 	 	 	73,457,032	 	 	 	73,829,507	 	
Between six and twelve months 	 	 	74,326,357	 	 	 	46,238,087	 	
In more than twelve months 	 	 	30,995,448	 	 	 	34,777,355	 	

Total	 	 	759,367,250	 	 	 	761,246,333	 	
 
 	The maturity of past due trade receivables as of September 30, 2015 and December 31, 2014 is as follows:	
 
 	 	 	As Of	 	
Trade receivables past due but not impaired	 	 	September 30, 2015	 	 	 	December 31, 2014	 	
 	 	 	ThCh$	 	 	 	ThCh$	 	
Past due in less than three months 	 	 	79,708,981	 	 	 	54,092,055	 	
Past due between three and six months 	 	 	17,590,052	 	 	 	18,260,439	 	
Past due between six and twelve months	 	 	5,361,871	 	 	 	5,791,956	 	
Past due in more than twelve months	 	 	11,685,032	 	 	 	22,606,571	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	114,345,936	 	 	 	100,751,021	 	
 
The movement of the bad debt allowance is as follows:
 
 	 	As of	 	
Change in bad debt allowance	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Initial balance 	 	 	45,643,245	 	 	 	91,600,887	 	
Increase in provision 	 	 	20,754,290	 	 	 	145,456,872	 	
Utilized provision	 	 	(17,678,472	)	 	 	(97,906,650	)	
Decrease in provision	 	 	(54,454,879	)	 	 	(38,037,483	)	
Reclassified to assets held for sale	 	 	55,470,381	 	 	 	(55,470,381	)	
 	 	 	 	 	 	 	 	 	
Total	 	 	49,734,565	 	 	 	45,643,245	 	
 
The maximum exposure to credit risk at the date of the report is the book value in each category of the trade account; the Cencosud Group does not request collateral as a guarantee.
 
7	Transactions with related parties	
 
Transactions with related companies are based on immediate payment or collection or with a term of up to 30 days, and are not subject to special conditions. These operations comply with what is established in articles 44 and 49 of Law N° 18,046 that regulates the Corporations,  It is noteworthy that the related party transactions are in accordance with IAS 24 (Revised) “Related Parties”, The Company has a policy to disclose all transactions performed with related parties during the period,

16

 
7.1	Board of Directors and key management of the Company	
 
The Board of Directors as of September 30, 2015 is comprised of the following people:

Board of directors	Role	Profession	
Horst Paulmann Kemna	Chairman	Businessman	
Heike Paulmann Koepfer	Director	Commercial Engineer	
Peter Paulmann Koepfer	Director	Commercial Engineer	
Roberto Oscar Phillips	Director	National Public Accountant	
Cristián Eyzaguirre Johnston	Director	Economist	
Richard Büchi Buc	Director	Civil Engineer	
David Gallagher Patrickson	Director	Businessman	
Julio Moura Neto	Director	Engineer	
 
Key management of the Company as of September 30, 2015 is composed of the following people:
 
Senior management	Position	Profession	
Jaime Soler	Chief Executive Officer	Commercial Engineer	
Carlos Mechetti	General Counsel	Attorney at law	
Bronislao Jandzio	Audit Managing Director	Business Administrator	
Renato Fernández	Corporate Affairs Manager	Journalist	
Antonio Ureta Vial	Home Improvement Managing Director	Commercial Engineer	
Patricio Rivas	Financial Retail Managing Director	Commercial Engineer	
Rodrigo Hetz	Human Resources Director	Industrial Engineer	
Andres Artigas	Chief Information Officer	Industrial Engineer	
Juan Manuel Parada	Chief Financial Officer	Business Administrator	
Rodrigo Larrain	Shopping Centers Managing Director	Industrial Engineer	
Ricardo Bennett	Department Store Managing Director	Industrial Engineer	
 
7.2	Board of Directors compensation	
 
In accordance with Article 33 of Law N° 18,046 in regards to Corporations, the Ordinary Shareholders’ Meeting held on April 24, 2015, set the following amounts for the 2015 period:
 
•	Fees paid for attending Board sessions: payment of UF 330 each month for those holding the position of Director of the Board and twice this amount for the President of the Board, if and only if they attend a minimum of 10 ordinary sessions each year,	
 
•	Fees paid for attending the Directors’ Committee: payment to each Director of UF 110 for each session they attend,	
 
The details of the amount paid to Directors for the nine months ended September 30, 2015 and 2014 are as follows:
 
Name	Role	 	September 30,
2015	 	 	September 30,
2014	 	
 	 	 	ThCh$	 	 	ThCh$	 	
Horst Paulmann Kemna 	Chairman	 	 	147,827	 	 	 	135,976	 	
Heike Paulmann Koepfer 	Director	 	 	73,913	 	 	 	67,988	 	
Peter Paulmann Koepfer 	Director	 	 	73,913	 	 	 	67,988	 	
Cristián Eyzaguirre Johnston 	Director	 	 	73,913	 	 	 	67,988	 	
Roberto Oscar Philipps 	Director	 	 	98,551	 	 	 	90,651	 	
Erasmo Wong Lu Vega (*) 	Director	 	 	73,913	 	 	 	67,988	 	
David Gallagher Patrickson 	Director	 	 	98,551	 	 	 	90,651	 	
Julio Moura 	Director	 	 	73,913	 	 	 	67,988	 	
Richard Bûchi Buc 	Director	 	 	98,551	 	 	 	90,651	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	 	813,045	 	 	 	747,869	 	
 
(*) Mr. Erasmo Wong Lu has resigned to his designation as Director, with effective date as from August 26 th , 2015.

17

 
7.3	Compensation paid to senior management	

 	 	 	 	 	 	 	
Key management compensation	 	September 30, 2015	 	 	September 30, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Salary and other short term employee benefits 	 	 	4,115,678	 	 	 	3,896,628	 	
Share based payments 	 	 	262,329	 	 	 	494,287	 	
Total 	 	 	4,378,007	 	 	 	4,390,915	 	
 
The Cencosud Group has established an incentive plan, which rewards management for the achievement of individual objectives in the achievement of the company’s results, These incentives are structured as a minimum and a maximum of gross compensation and are paid once a year.
 
8                                Inventory
 
The composition of this item as of September 30, 2015 and December 31, 2014 is as follows:
 
 	 	As of	 	
Inventory category	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Raw materials 	 	 	5,104,185	 	 	 	6,804,775	 	
Goods 	 	 	1,306,857,575	 	 	 	1,219,396,964	 	
Finished Goods	 	 	-	 	 	 	235,448	 	
Provisions	 	 	(125,861,573	)	 	 	(131,827,604	)	
 	 	 	 	 	 	 	 	 	
Total	 	 	1,186,100,187	 	 	 	1,094,609,583	 	
 
The composition of inventories by business line as of September 30, 2015 and December 31, 2014 is as follows:
 
 	 	 	As of September 30, 2015	 	
Inventory category	 	 	Department
stores	 	 	 	Supermarkets	 	 	 	Home
improvement	 	 	 	Total	 	
 	 	 	ThCh$	 	 	 	ThCh$	 	 	 	ThCh$	 	 	 	ThCh$	 	
Raw material 	 	 	2,003,123	 	 	 	3,101,062	 	 	 	-	 	 	 	5,104,185	 	
Goods 	 	 	185,771,453	 	 	 	716,157,843	 	 	 	279,066,706	 	 	 	1,180,996,002	 	
Finished Goods	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	187,774,576	 	 	 	719,258,905	 	 	 	279,066,706	 	 	 	1,186,100,187	 	
 
 	 	As of December 31, 2014	 	
Inventory category	 	Department
stores	 	 	Supermarkets	 	 	Home
improvement	 	 	Total	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Raw material 	 	 	2,116,044	 	 	 	4,688,732	 	 	 	-	 	 	 	6,804,776	 	
Goods 	 	 	153,451,257	 	 	 	695,663,533	 	 	 	238,454,570	 	 	 	1,087,569,360	 	
Finished Goods	 	 	-	 	 	 	235,447	 	 	 	-	 	 	 	235,447	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	155,567,301	 	 	 	700,587,712	 	 	 	238,454,570	 	 	 	1,094,609,583	 	
 
The Company periodically assesses its inventories at their net realizable value, by separating the inventory for each line of business and verifying the age, inventory turnover, sales prices and seasonality. Any adjustments are carried against income of the period.
 
The goods included in inventory are valued between the purchase price or production cost, net of allowance for obsolescence and net realizable value.

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9          Intangible assets other than goodwill
 
Intangible assets are mainly composed of software and brands acquired in business combinations. The detail as of September 30, 2015 and December 31, 2014 is as follows:
 
 	 	As of	 	
Intangibles assets other than goodwill net	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Finite life intangible assets, net 	 	 	133,453,217	 	 	 	125,471,527	 	
Indefinite life intangible assets, net 	 	 	274,996,469	 	 	 	275,070,653	 	
 	 	 	 	 	 	 	 	 	
Intangible assets, net	 	 	408,449,686	 	 	 	400,542,180	 	
 	 	 	 	 	 	 	 	 	
Patents, Trade Marks and Other Rights, Net 	 	 	274,996,469	 	 	 	275,070,653	 	
Software (IT) 	 	 	102,521,451	 	 	 	88,441,290	 	
Other Identifiable Intangible Assets, net 	 	 	30,931,766	 	 	 	37,030,237	 	
 	 	 	 	 	 	 	 	 	
Identifiable Intangible Assets, Net	 	 	408,449,686	 	 	 	400,542,180	 	

 	 	As of	
Intangibles assets other than goodwill gross	 	September 30, 2015	 	December 31, 2014	
 	 	ThCh$	 	ThCh$	
Finite life intangible assets, Gross 	 	 	245,090,510	 	216,527,275	
Indefinite life intangible assets, Gross 	 	 	274,996,469	 	275,070,653	
 	 	 	 	 	 	
Intangible Assets, Gross	 	 	520,086,979	 	491,597,928	
 	 	 	 	 	 	
Patents, Trade Marks and Other Rights, Gross 	 	 	274,996,469	 	275,070,653	
Software (IT) 	 	 	194,168,768	 	160,757,436	
Other Identifiable Intangible Assets, Gross 	 	 	50,921,742	 	55,769,839	
 	 	 	 	 	 	
Identifiable Intangible Assets, Gross	 	 	520,086,979	 	491,597,928	

 	 	As of	 	
Accumulated amortization and value impairment	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Finite life intangible assets 	 	 	(111,637,293	)	 	 	(91,055,748	)	
Indefinite life intangible assets 	 	 	-	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	
Intangible Assets, Gross	 	 	(111,637,293	)	 	 	(91,055,748	)	
 	 	 	 	 	 	 	 	 	
Software (IT) 	 	 	(91,647,317	)	 	 	(72,316,146	)	
Other Identifiable Intangible Assets (*) 	 	 	(19,989,976	)	 	 	(18,739,602	)	
 	 	 	 	 	 	 	 	 	
Accumulated amortization and value impairment	 	 	(111,637,293	)	 	 	(91,055,748	)	
 
(*) Other identifiable intangible assets mainly correspond to customer’s data base.

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The detail of the useful lives applied to intangible assets as of September 30, 2015 and December 31, 2014 is as follows:
 
Estimated useful lives or amortization rates used	 	Minimum
life	 	 	Maximum
life	 	
Development costs 	 	 	1	 	 	 	7	 	
Patents, Trade Marks and Other Rights 	 	Indefinite	 	 	Indefinite	 	
Software (IT)	 	 	1	 	 	 	7	 	
Other identifiable Intangible Assets	 	 	1	 	 	 	5	 	
 
The detail of the amounts of identifiable intangible assets that are individually significant as of September 30, 2015 and December 31, 2014 is as follows:
 
Individually significant identifiable Intangible assets	 	Book
Value
September 2015	 	 	Book
Value
December 2014	 	Remaining
amortization
period	Country of
origin	Segment	
 	 	ThCh$	 	 	ThCh$	 	 	 	 	
Paris Brand 	 	 	120,754,313	 	 	 	120,754,313	 	Indefinite	Chile	Department stores	
Johnson’s Brand	 	 	15,501,628	 	 	 	15,501,628	 	Indefinite	Chile	Department stores	
Pierre Cardin License	 	 	171,584	 	 	 	171,584	 	Defined	Chile	Department stores	
Wong Brand 	 	 	35,540,487	 	 	 	33,189,716	 	Indefinite	Peru	Supermarkets	
Metro Brand	 	 	77,542,879	 	 	 	72,413,925	 	Indefinite	Peru	Supermarkets	
Bretas Brand	 	 	14,762,371	 	 	 	19,137,928	 	Indefinite	Brazil	Supermarkets	
Perini Brand	 	 	661,004	 	 	 	856,926	 	Indefinite	Brazil	Supermarkets	
Prezunic Brand	 	 	10,062,203	 	 	 	13,044,633	 	Indefinite	Brazil	Supermarkets	
 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	274,996,469	 	 	 	275,070,653	 	 	 	 	
 
The factors for considering the brands with indefinite useful lives over time are the following:
 
•	Verifiable history and expected use of the asset by the Company: This is the most important factor to consider in the definition of the useful life of the brand. The brands mentioned have a history of more than 80 years of successful existence in the market. The use that has been and is being given to these brands shows an intention to keep them and consolidate them further in the long term.	
 
•	Legal, regulatory or contractual limits to the useful life of the intangible asset: There are no legal, regulatory or contractual limits linked to the brands. The brands are duly protected and the pertinent registrations remain current.	
 
•	Effects of obsolescence, demand, competition and other economic factors: The brands have a rating linked to strong national brands according to their history. This implies a low risk of obsolescence.	
 
•	Maintenance of the necessary investment levels to produce the projected future cash flows: historic and projected cash flows for the brands are duly sustained with investments in marketing, publicity, technology, renovations and improvements to the retail infrastructure, They are efficient as a result of synergies and scale of operations, but are compatible and realistic for the industry, An increase in the other general administration expenses and necessary sales is also contemplated to sustain the projected increase in sales.	
 
•	Relationship of the useful life of an asset or group of assets with the useful life of an intangible asset: The brands do not depend on the useful life of any asset or group of assets as they existed independently for a substantial time prior to the acquisitions, and they are not related to sectors subject to technological obsolescence or other causes.	

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10	 	Goodwill	
 
The goodwill represents the excess of the acquisition cost, over the fair value of the Group’s interest in the identifiable net assets of the subsidiary/associate as of the date of acquisition. Goodwill is allocated to each store or group of stores, as appropriate, in each country and operating segment (CGUs cash generating units).
 
10.1                      Measuring recoverable value of the Goodwill,
 
Goodwill is assessed at least annually. Valuations at interim periods could be done, if there are any signs that the carrying value of our goodwill may not be recoverable. These signs may include a significant change in the economic environment affecting business, new laws, operating performance indicators, competition movements, or the transfer of an important part of a cash-generating unit (CGU).
 
To check whether goodwill has suffered an impairment loss of value, the company compares the carrying amount of the assets, against their recoverable value. We may recognize an impairment loss if the carrying amount of the asset excess its recoverable amount. The Group believes that value in use approach by the discounted cash flow method, is the most reliable way to determine the recoverable value of the CGU method.
 
10.2                      Main key assumptions for the 2014 annual test,
 
a) Discount rate
 
The real discount rate applied to annual test conducted in September 2014, was estimated based on historical data of average cost rate of capital with a leverage of 23%, by considering as reference the major competitors in the industry. Differentiated discount rate is used in each of the countries where the Company operates, depending on the associated local risks. Used rates are shown in the table below:

Segment and Country	 	Chile	 	 	Colombia	 	 	Peru	 	 	Colombia	 	 	Brazil	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Supermarkets 	 	 	9.60	%	 	 	31.07	%	 	 	10.65	%	 	 	9.51	%	 	 	10.30	%	
Department Stores 	 	 	9.17	%	 	 	-	 	 	 	8.89	%	 	 	-	 	 	 	-	 	
Home Improvement	 	 	9.54	%	 	 	34.33	%	 	 	-	 	 	 	9.23	%	 	 	-	 	
 
b) Other assumptions
 
The financial projections used to determine the net present value of future cash flows are modeled considering the main variables of historical flows of each CGU and approved budgets. In this sense, a conservative growth rate is used, which generally vary between 0% and 3%, and from 0.5% to 1% beyond the fifth year projection. This takes into consideration the degree of maturity of each investment. In this regard, the most sensitive variables in these projections are: the discount rates applied in determining the net present value of projected cash flows; the operating costs; the market prices for the goods and services sold.
 
For purposes of the annual impairment test, the results are stressed by sensitizing the critical variables that affect the financial projections. These sensitizations are performed over the real WACC discount rate, with a range of variation of +-5%; and over +-10% for the perpetuity growth rate.
 
The recoverable amount of the annual test 2014 exceeded the book value of each CGU. The results of the sensitivity analysis, performed on the critical variables, also showed that any recoverable value ​​exceeded its respective carrying amount by CGU.
 
10.3                      Impairment risks on Cash Generating Unit Supermarkets - Brazil,
 
During the first half 2015 the Brazilian economy has decreased pushed by the political crisis, especially since the 2nd quarter of this year. These circumstances affect the expectations adopted by the 2014 annual impairment test, for the 2015 and successive projections.

External Indicators

The most representative variables of the hard economic conditions in Brazil and the weakening of the market are the following:

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a) Devaluation of local currency against the dollar: Brazilian Real (BRL) felt 15% in front of the American Dollar (USD) during the first half of 2015 (December 31, 2014 at BRL $ 2.6926 / USD; June 30 2015 BRL $ 3.0975 / USD).
b) Decrease in GDP growth. Falling from 0.1% growth in 2014, to a projection (tending to a contraction) of -1.5% in 2015 (IMF Bulletin, July 2015).
c) Increase of the unemployment rate. From a 4.8% unemployment rate at the end of 2014; to a 6.7% unemployment rate as of May 2015.
d) Persistent high inflation. By passing from a rate of 6.4% in the year 2014 to 8.4% in the last 12 months to May 2015 measured.
e) Significant increase in Producers Price Index (PPI). Raw materials have experimented meaningful increase. The SELIC (Bank overnight rate) has reached a level of 13.75%, one of the highest among the ten largest economies in the world.
 
As a consequence of worsening macroeconomic variables in Brazil, the Company has made a permanent monitoring of the CGU Supermarkets in Brazil performance in 2015. These aforementioned impacts on following internal indicators.

Internal Indicators

a) Decrease in sales in local currency. Showing a 1.4% growth in last 12 months, a figure lower than the expected in the company's projections for 2015.
b) Decrease in sales in local currency by quarter. The 2015 second quarter sales felt 5.3%, in comparison with the same quarter of 2014.
c) Adjusted EBITDA. The adjusted EBITDA in local currency were 1.4% measured in the last twelve months. This index is lower than the official budget projection figure.
 
That change in the Brazilian macroeconomic expectations has driven the Company to permanently monitor that CGU´s performance. Being that, after evaluating the Supermarkets – Brazil segment development, the Group has considered that there are qualitative indications that the goodwill of the Supermarkets - Brazil CGU could be at risk of failing a new impairment test. According to this, a new calculation of the recovery value of the CGU Supermarkets Brazil was done by taking into account the adjusted assumptions and updated business outlook. The value in use was obtained by discounting the future cash flows at their present value, using an updated WACC rate.

The financial model showed that the recoverable amount of the CGU Supermarkets - Brazil was lower than the carrying value of its long-term assets, for this reason, the Group recorded a goodwill impairment in the amount of M $116,771,460 (BRL $ 566 million).
 
Reconciliation of the Brazilian Goodwill books value

Concept	 	ThCh$	 	
 	 	 	 	
Initial balance as of December 31, 2014 	 	 	569,584,936	 	
Increase (decrease) for changes in foreign exchanges	 	 	(113,140,112	)	
Impairment (recognized June 30, 2015) 	 	 	(116,771,460	)	
Ending balance as of September 30, 2015	 	 	339,673,364	 	

The Supermarkets – Brazil impairment loss of goodwill, effective at June 30 2015, has been recognized within the Interim consolidated statement of comprehensive income by function, under the "Other gains and losses" line (see 15.4). This impairment does not represent any impact over the Company’s cash flows.
 
According to IAS 36.124, the reversal of an impairment loss for goodwill is prohibited.
 
Sensitization of the critical variables of the financial model for the recoverable value of the CGU Supermarkets Brazil outcomes the next scenarios:

●	An increase of 5% of the real WACC rate would produce a recoverable amount 5.25% lower.	
●	A decrease of 5% of the real WACC rate would produce a recoverable amount 5.83% higher.	
●	A decrease of 10% of perpetuity growth rate would produce a recoverable amount 0.48% lower.	
●	An increase of 10% of perpetuity growth rate would produce a recoverable amount 0.48% higher.	

The deferred taxes generated by the impairment of goodwill of Brazil Supermarkets segment have been recorded in accordance with IAS 36, paragraph 64 and IAS 12, by comparing the carrying amount of the deferred asset with its tax base as of September 30, 2015. (see note 17)

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10.4                      Goodwill by segment and country,
 
The following table details goodwill balances and movements by operating segment and country as of September 30, 2015 and December 31, 2014:
 
Goodwill per operating segment and country	 	As of
December, 2014	 	 	Impairment	 	 	Increase
(decrease)
foreign
exchange	 	 	As of
September, 2015	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ThCh$	 	 	 	 	 	ThCh$	 	 	ThCh$	 	
Real Estate & Shopping—Argentina 	 	 	150,347	 	 	 	-	 	 	 	6,843	 	 	 	157,190	 	
Supermarkets—Chile 	 	 	106,991,957	 	 	 	-	 	 	 	-	 	 	 	106,991,957	 	
Supermarkets—Brazil 	 	 	569,584,936	 	 	 	(116,771,460	)	 	 	(113,140,112	)	 	 	339,673,364	 	
Supermarkets—Peru 	 	 	268,644,820	 	 	 	-	 	 	 	18,083,518	 	 	 	286,728,338	 	
Supermarkets— Colombia 	 	 	499,279,860	 	 	 	-	 	 	 	(39,942,388	)	 	 	459,337,472	 	
Financial services – Colombia 	 	 	59,438,079	 	 	 	-	 	 	 	(4,755,047	)	 	 	54,683,032	 	
Shopping Centers – Colombia 	 	 	35,662,847	 	 	 	-	 	 	 	(2,853,028	)	 	 	32,809,819	 	
Home Improvement—Argentina 	 	 	3,208,796	 	 	 	-	 	 	 	148,909	 	 	 	3,357,705	 	
Home Improvement—Chile 	 	 	1,227,458	 	 	 	-	 	 	 	-	 	 	 	1,227,458	 	
Department stores—Chile 	 	 	138,159,463	 	 	 	-	 	 	 	-	 	 	 	138,159,463	 	
Total	 	 	1,682,348,563	 	 	 	(116,771,460	)	 	 	(142,451,305	)	 	 	1,423,125,798	 	

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11                                Property, plant and equipment
 
11.1	The composition of this item as of September 30, 2015 and December 31, 2014 is as follows:	
 
 	 	As of	 	
Property, plant and equipment categories, net	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Construction in progres	 	 	69,405,773	 	 	 	108,039,312	 	
Land 	 	 	755,087,746	 	 	 	771,941,960	 	
Buildings	 	 	1,122,925,888	 	 	 	1,138,386,080	 	
Plant and equipment	 	 	264,102,229	 	 	 	271,557,150	 	
Information technology equipment	 	 	36,891,680	 	 	 	41,570,626	 	
Fixed installations and accessories	 	 	365,899,943	 	 	 	383,530,334	 	
Motor vehicles	 	 	742,031	 	 	 	3,256,956	 	
Leasehold improvements	 	 	212,695,626	 	 	 	260,036,836	 	
Other property plant and equipment	 	 	23,413,116	 	 	 	31,409,202	 	
Totals	 	 	2,851,164,032	 	 	 	3,009,728,456	 	

 	 	As of	 	
Property, plant and equipment categories, gross	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Construction in progress 	 	 	69,405,773	 	 	 	108,039,312	 	
Land 	 	 	755,087,746	 	 	 	771,941,960	 	
Buildings	 	 	1,370,793,744	 	 	 	1,307,766,446	 	
Plant and equipment	 	 	632,522,228	 	 	 	574,031,893	 	
Information technology equipment	 	 	150,090,992	 	 	 	140,855,699	 	
Fixed installations and accessories	 	 	752,020,642	 	 	 	730,008,063	 	
Motor vehicles	 	 	5,042,806	 	 	 	7,848,595	 	
Leasehold improvements	 	 	267,873,315	 	 	 	316,018,733	 	
Other property plant and equipment	 	 	29,296,697	 	 	 	36,689,120	 	
Totals	 	 	4,032,133,943	 	 	 	3,993,199,821	 	

 
 	 	As of	 	
Accumulated depreciation and impairment of property, plant and equipment	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Buildings 	 	 	(247,867,856	)	 	 	(169,380,366	)	
Plant and equipment 	 	 	(368,419,999	)	 	 	(302,474,743	)	
Information technology equipment	 	 	(113,199,312	)	 	 	(99,285,073	)	
Fixed installations and accessories	 	 	(386,120,699	)	 	 	(346,477,729	)	
Motor vehicles	 	 	(4,300,775	)	 	 	(4,591,639	)	
Leasehold improvements	 	 	(55,177,689	)	 	 	(55,981,897	)	
Other property plant and equipment	 	 	(5,883,581	)	 	 	(5,279,918	)	
Totals	 	 	(1,180,969,911	)	 	 	(983,471,365	)	

 
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  11.2                        The following table shows the technical useful lives for the assets.
 
Method used for the depreciation of property, plant and equipment (life)	Rate explanation	 	Minimum
life	 	 	Maximum
life	 	
Buildings 	Useful Life (years)	 	 	25	 	 	 	60	 	
Plant and equipment 	Useful Life (years)	 	 	7	 	 	 	20	 	
Information technology equipment	Useful Life (years)	 	 	3	 	 	 	7	 	
Fixed installations and accessories	Useful Life (years)	 	 	7	 	 	 	15	 	
Motor vehicles	Useful Life (years)	 	 	1	 	 	 	5	 	
Leasehold improvements (*)	Useful Life (years)	 	 	5	 	 	 	35	 	
Other property plant and equipment	Useful Life (years)	 	 	3	 	 	 	15	 	

(*) Leasehold improvement will be depreciated using the shorter useful life between of the length of the lease contract and the useful life per the table above.
 
12	Investment properties	
 
12.1	The roll-forward of investment properties at September 30, 2015 and December 31, 2014 is the following:	

 	 	As of	 	
Roll-forward of investment properties, net, fair value method	 	September 30, 2015	 	 	December 31, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Investment properties, net, initial value 	 	 	1,663,592,396	 	 	 	1,568,432,058	 	
Change in unrealized gains (losses) 	 	 	56,392,525	 	 	 	100,772,615	 	
Additions, Investment Properties, Fair Value Method	 	 	5,739,254	 	 	 	25,060,310	 	
Acquisition from a business combination	 	 	-	 	 	 	-	 	
Transfer to (from) owner-occupied property, investment property, cost model	 	 	(11,735,573	)	 	 	(15,535,083	)	
Retirement, investment properties, Fair Value Method	 	 	-	 	 	 	-	 	
Increase (decrease) in foreign exchange rate, Investment Properties, Fair Value Method	 	 	18,207,089	 	 	 	(15,137,504	)	
 	 	 	 	 	 	 	 	 	
Changes in Investment Properties, Fair Value Method, Total	 	 	68,603,295	 	 	 	95,160,338	 	
 	 	 	 	 	 	 	 	 	
Investment Properties, Fair Value Method, Final Balance	 	 	1,732,195,691	 	 	 	1,663,592,396	 	
 
12.2	Income and expense from investment properties	
 
 	 	For the nine months ended	 	
Roll-forward of investment properties, net fair value method	 	September 30, 2015	 	 	September 30,
2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Revenue from Investment Property Leases 	 	 	175,735,788	 	 	 	151,443,931	 	
Direct Expense of Operation of Investment Properties which generate lease revenue	 	 	59,449,575	 	 	 	42,799,882	 	
 
12.3	As of September 30, 2015 and December 31, 2014, investment properties are not encumbered,	
 
12.4	As of September 30, 2015 there are commitments to acquire investment properties by ThCh$ 15,357,195 (ThCh$ 18,415,052 as of December 31, 2014),	

25

 
12.5	There are no restrictions on ownership of assets,	
 
12.6	Other projects	
 
 	The Costanera Center project corresponds to assets that have been classified as investment property. As of September 30, 2015 and December 31, 2014, this project has been valued using the fair value model. The methodology used in the valuation of these assets and used significant assumptions are described in note 4.5 of the annual financial statements as of December 31, 2014.	

26

 
13	Other financial liabilities, current and non-current	
 
The composition of this item as of September 30, 2015 and December 31, 2014 is the following:
 
13.1               Types of interest bearing (accruing) loans
 
 	 	Balance as of 9/30/2015	 	 	Balance as of 12/31/2014	 	
Loans	 	Current	 	 	Non-current	 	 	Current	 	 	Non-current	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Bank loans (1) 	 	 	302,890,435	 	 	 	286,034,877	 	 	 	629,083,332	 	 	 	695,092,202	 	
Bond debt (2) 	 	 	44,727,349	 	 	 	2,559,825,439	 	 	 	50,539,046	 	 	 	1,656,384,016	 	
Other loans—leases	 	 	2,793,733	 	 	 	30,746,994	 	 	 	2,671,208	 	 	 	31,558,878	 	
Other financial liabilities (hedge activities)	 	 	53,073	 	 	 	-	 	 	 	382,754	 	 	 	-	 	
Time deposits (3)	 	 	104,736,679	 	 	 	27,799,484	 	 	 	25,347,841	 	 	 	28,315,851	 	
Term savings accounts	 	 	458,638	 	 	 	-	 	 	 	-	 	 	 	-	 	
Letters of credit	 	 	-	 	 	 	8,424,656	 	 	 	-	 	 	 	-	 	
Deposits and other demand deposits	 	 	2,756,712	 	 	 	-	 	 	 	-	 	 	 	-	 	
Debt purchase Bretas	 	 	-	 	 	 	-	 	 	 	-	 	 	 	12,697,096	 	
Debt purchase Prezunic	 	 	11,043,552	 	 	 	-	 	 	 	21,539,582	 	 	 	4,891,649	 	
Debt M, Rodriguez	 	 	-	 	 	 	1,778,012	 	 	 	-	 	 	 	2,092,404	 	
Debt purchase Johnson	 	 	1,420,417	 	 	 	2,700,010	 	 	 	4,003,417	 	 	 	-	 	
Other Financial liabilities—other	 	 	1,417,115	 	 	 	-	 	 	 	5,939,949	 	 	 	-	 	
Totals Loans	 	 	472,297,703	 	 	 	2,917,309,472	 	 	 	739,507,129	 	 	 	2,431,032,096	 	
 
(1)	Bank loans correspond to loans taken out with banks and financial institutions,	
(2)	Bond debt corresponds to bonds placed in public securities markets or issued to the public in general,	
(3)	Time deposits are the main funding source of the subsidiary, Banco Paris in Chile. Deposits taken by Chilean clients of Banco Paris are mainly money market deposits, which are 390 persons and 19 institutions. The average maturity of these deposits is 126 days as of September 30, 2015, and 196 days as of December 31, 2014.	

13.2	Restrictions	
 
Loan agreements and outstanding bonds of the Company contain a number of covenants requiring compliance with certain financial ratios and other tests, As of September 30, 2015 and December 31, 2014 the Company was in compliance with the aforementioned financial debt covenants.
 
14                           Provisions and other liabilities
 
14.1	Provisions	

The composition of this item as of September 30, 2015 and December 31, 2014 is as follows:

As of	 	
 	 	Current	 	 	Non-current	 	
Accruals and provision	 	September 30,
2015	 	 	December 31,
2014	 	 	September 30,
2015	 	 	December 31,
2014	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Legal claims provision 	 	 	14,722,492	 	 	 	10,911,238	 	 	 	89,995,830	 	 	 	88,428,946	 	
Onerous contracts provision 	 	 	3,667,969	 	 	 	4,286,320	 	 	 	13,415,646	 	 	 	16,336,833	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	18,390,461	 	 	 	15,197,558	 	 	 	103,411,476	 	 	 	104,765,779	 	

27

 
14.2	Movement of provisions:	
 
Provision type	 	Legal claims	 	 	Onerous
contracts	 	 	Total	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Initial Balance January 1, 2015 	 	 	99,340,184	 	 	 	20,623,153	 	 	 	119,963,337	 	
Movements in Provisions:	 	 	 	 	 	 	 	 	 	 	 	 	
Additional provisions	 	 	13,159,496	 	 	 	-	 	 	 	13,159,496	 	
Increase (decrease) in existing provisions	 	 	3,853,747	 	 	 	(3,232,979	)	 	 	620,768	 	
Provision used during the year	 	 	(1,207,628	)	 	 	-	 	 	 	(1,207,628	)	
Increase (decrease) in foreign exchange rate	 	 	(10,427,477	)	 	 	(306,559	)	 	 	(10,734,036	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Changes in provisions, total	 	 	5,378,138	 	 	 	(3,539,538	)	 	 	1,838,600	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total provision, closing  balance as of September 30, 2015	 	 	 104,718,322	 	 	 	 17,083,615	 	 	 	 121,801,937	 	

 
Provision type	 	Legal claims	 	 	Onerous
contracts	 	 	Total	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Initial Balance January 1, 2014 	 	 	109,180,802	 	 	 	25,448,067	 	 	 	134,628,869	 	
Movements in Provisions:	 	 	 	 	 	 	 	 	 	 	 	 	
Additional provisions	 	 	15,688,454	 	 	 	-	 	 	 	15,688,454	 	
Increase (decrease) in existing provisions	 	 	(9,569,206	)	 	 	(4,410,328	)	 	 	(13,979,534	)	
Provision used during the year	 	 	(11,984,434	)	 	 	-	 	 	 	(11,984,434	)	
Increase (decrease) in foreign exchange rate	 	 	(1,836,299	)	 	 	(414,586	)	 	 	(2,250,885	)	
Other increase (decrease)	 	 	(2,139,133	)	 	 	-	 	 	 	(2,139,133	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Changes in provisions, total	 	 	(9,840,618	)	 	 	(4,824,914	)	 	 	(14,665,532	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total provision, closing  balance as of December 31, 2014	 	 	99,340,184	 	 	 	20,623,153	 	 	 	119,963,337	 	

28

 
15	Net equity	
 
15.1	Paid-in capital	
 
As of September 30, 2015, and December 31, 2014, the authorized, subscribed and paid-in capital amounts to ThCh$ 2,321,380,936.
 
15.2                      Subscribed and paid shares
 
As of June 22, 2012, the Company proceeded to increase the authorized Capital through the issuance of 270,000,000 of shares, without a par value and in a unique series, as agreed at the shareholders meeting held on April 29 th , 2011 which complemented and modified preliminary agreements made at extraordinary shareholders meetings on March 1 st and May 15 th of 2012, 27,000,000 shares out of the capital increase were set aside to offer them in a stock option plan for the Company’s upper management
 
The referential share price reported to the SVS (Superintendencia de Valores y Seguros) was Ch$ 3,555,56. The final issue share price was Ch$2,600 per share.
 
In connection with share issuance, 59,493,000 shares were issued in the United States of America in the form of American Depositary Shares (ADSs) and 210,507,000 shares were issued in the local market in Chile.
 
At the extraordinary shareholders meeting held on November 20, 2012, the shareholders agreed to increase capital by ThCh$835,000,000 through the issuance of 332,987,717 of shares in one series and without a par value, 10% out of the total issuance was set aside to offer them in a stock option plan for employees, the remaining of the shares was offered to the Company’s shareholders
 
The following tables show the movement of the authorized and the issued and fully paid shares described above between December 31, 2014 and September 30, 2015

Movement of authorized shares	 	No of
shares	 	 	
Authorized shares as of December 31, 2014	 	 	2,889,022,734	 		
Authorized shares as of September 30, 2015	 	 	2,889,022,734	 		
 
Movement in issued and fully paid shares	 	No of
shares	 	 	Total
ThCh$	 	
Paid shares as of December 31, 2014	 	 	2,828,723,963	 	 	 	2,321,380,936	 	
Paid shares as of September 30, 2015	 	 	2,828,723,963	 	 	 	2,321,380,936	 	
 
As of  September 30, 2015 and December 31, 2014, 60,298,771 issued shares were pending of subscription and payment, of which 27,000,000 and 33,298,771 will expire on April 29 th and November 20 th of 2017 respectively.
 
15.3	Dividends	
 
The dividend distribution policy adopted by Cencosud S,A, establishes the payment of dividends of 30% of the distributable net profits.
 
In relation to SVS Ruling No. 1945, on October 29, 2010, the Company’s Board of Directors agreed that the net distributable profits for the year 2010 and following years will be the figure reflected in the financial statements as “profit for the year attributable controlling shareholders”, excluding the unrealized result for fair value appraisal of investment properties, net of deferred taxes.

On -November 3rd, 2014, the Board of Directors agreed on distributing an interim dividend of Ch$8 per share in relation to the profits of 2014. This dividend was paid on December 3 th , 2014. This dividend was given to those shareholders registered as of  November 27 th 2014.
 
As of September 30, 2015, the Group has recognized a minimum dividend payment for the interim results up to that date of ThCh$ 633,604 (ThCh$ 13,603,115 as of 12-31-2014); with effect on equity for the nine months ended September 30, 2015 amounts to ThCh$ 22,669,751 (ThCh$ 47,829,433 as of December 31, 2014).

29

 
15.4	Changes in ownership interest	
 
No changes relating to ownership interest have occurred between 12/31/2014 and 9/30/2015.
 
In 2014, the increase (decrease) due to changes in ownership interest without a loss of control presented in the statement of changes in equity reflect the effect of the exchange of shares between Cencosud S,A, and the minority shareholders in connection with the merger of two companies of the Group, which resulted in an increase in the Company’s ownership percentage in subsidiary Cencosud Retail.
 
16                           Breakdown of significant results

The items by function from the Statements of Income are described as follows in 16,1, 16,2 y 16,3,
 
Expenses by nature of integral income by function	 	 	9-30-2015	 	 	 	9-30-2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Cost of sales 	 	 	5,669,627,905	 	 	 	5,650,384,555	 	
Distribution cost 	 	 	20,275,644	 	 	 	18,707,492	 	
Administrative expenses	 	 	1,849,722,767	 	 	 	1,651,647,696	 	
Other expenses by function (*)	 	 	122,779,162	 	 	 	125,809,935	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	7,662,405,478	 	 	 	7,446,549,678	 	
 
(*)	Mainly includes marketing expenses,	
 
16.1	Expenses by nature	
 
The following is a breakdown of the main operating and management costs and expenses of the Cencosud Group for the following periods:
 
Expenses by nature	 	 
For the nine months ended 9/30/2015	 	 	 
For the nine months ended 9/30/2014	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Cost of goods sold 	 	 	5,331,343,656	 	 	 	-	 	 	 	5,331,343,656	 	 	 	5,342,332,245	 	 	 	-	 	 	 	5,342,332,245	 	
Other cost of sales 	 	 	358,684,273	 	 	 	20,400,024	 	 	 	338,284,249	 	 	 	350,074,487	 	 	 	42,022,177	 	 	 	308,052,310	 	
Personnel expenses 	 	 	1,170,636,263	 	 	 	8,616,416	 	 	 	1,162,019,847	 	 	 	1,073,226,694	 	 	 	19,153,770	 	 	 	1,054,072,924	 	
Depreciation and amortization 	 	 	164,668,648	 	 	 	715,030	 	 	 	163,953,618	 	 	 	150,111,915	 	 	 	1,691,568	 	 	 	148,420,347	 	
Distribution cost 	 	 	20,275,644	 	 	 	-	 	 	 	20,275,644	 	 	 	18,707,492	 	 	 	-	 	 	 	18,707,492	 	
Other expenses by function 	 	 	122,779,162	 	 	 	-	 	 	 	122,779,162	 	 	 	125,809,935	 	 	 	-	 	 	 	125,809,935	 	
Cleaning 	 	 	60,697,937	 	 	 	23,750	 	 	 	60,674,187	 	 	 	54,664,662	 	 	 	64,051	 	 	 	54,600,611	 	
Safety and security 	 	 	52,422,957	 	 	 	25,803	 	 	 	52,397,154	 	 	 	43,917,340	 	 	 	51,111	 	 	 	43,866,229	 	
Maintenance 	 	 	67,131,009	 	 	 	493,522	 	 	 	66,637,487	 	 	 	62,944,412	 	 	 	663,200	 	 	 	62,281,212	 	
Professional fees 	 	 	59,187,133	 	 	 	687,767	 	 	 	58,499,366	 	 	 	55,496,078	 	 	 	1,927,305	 	 	 	53,568,773	 	
Bags for Customers 	 	 	17,516,658	 	 	 	-	 	 	 	17,516,658	 	 	 	18,042,203	 	 	 	-	 	 	 	18,042,203	 	
Credit card commission 	 	 	75,073,616	 	 	 	11,352	 	 	 	75,062,264	 	 	 	63,824,447	 	 	 	-	 	 	 	63,824,447	 	
lease 	 	 	144,457,971	 	 	 	548,126	 	 	 	143,909,845	 	 	 	137,739,173	 	 	 	1,550,254	 	 	 	136,188,919	 	
Other 	 	 	72,666,884	 	 	 	6,243,329	 	 	 	66,423,555	 	 	 	92,503,246	 	 	 	24,198,965	 	 	 	68,304,281	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total 	 	 	7,717,565,563	 	 	 	37,788,871	 	 	 	7,679,776,692	 	 	 	7,592,803,409	 	 	 	94,731,481	 	 	 	7,498,071,928	 	

30

 
16.2	Personnel expenses	
 
The following is a breakdown of personnel expenses for the following periods:
 
Personnel expenses	 	For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Salaries 	 	 	920,110,664	 	 	 	7,755,321	 	 	 	912,355,343	 	 	 	853,461,486	 	 	 	17,003,162	 	 	 	836,458,324	 	
Short-term employee benefits 	 	 	189,335,303	 	 	 	444,059	 	 	 	188,891,244	 	 	 	197,143,578	 	 	 	1,141,631	 	 	 	196,001,947	 	
Termination benefits	 	 	61,190,297	 	 	 	417,037	 	 	 	60,773,260	 	 	 	22,621,630	 	 	 	1,008,977	 	 	 	21,612,653	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,170,636,263	 	 	 	8,616,416	 	 	 	1,162,019,847	 	 	 	1,073,226,694	 	 	 	19,153,770	 	 	 	1,054,072,924	 	

16.3	Depreciation and amortization	

The following is a breakdown of depreciation and amortization for the following periods:
 
Depreciation and amortization	 	For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Depreciation 	 	 	143,408,533	 	 	 	36,460	 	 	 	143,372,073	 	 	 	136,405,929	 	 	 	274,996	 	 	 	136,130,933	 	
Amortization	 	 	21,260,115	 	 	 	678,570	 	 	 	20,581,545	 	 	 	13,705,986	 	 	 	1,416,572	 	 	 	12,289,414	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	164,668,648	 	 	 	715,030	 	 	 	163,953,618	 	 	 	150,111,915	 	 	 	1,691,568	 	 	 	148,420,347	 	
 
16.4	Other gains (losses)	
 
Other gain (losses)	 	For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Gains obtained from sales of subsidiaries (see note 21)	 	 	61,372,533	 	 	 	-	 	 	 	61,372,533	 	 	 	-	 	 	 	-	 	 	 	-	 	
Assets impairment (see note 10)  	 	 	(116,771,460	)	 	 	-	 	 	 	(116,771,460	)	 	 	-	 	 	 	-	 	 	 	-	 	
Fair value derivatives	 	 	(6,519,527	)	 	 	-	 	 	 	(6,519,527	)	 	 	-	 	 	 	-	 	 	 	-	 	
Insurance claims 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,411,112	 	 	 	-	 	 	 	1,411,112	 	
Sales of Property, plant and equipment	 	 	11,749,256	 	 	 	-	 	 	 	11,749,256	 	 	 	372,490	 	 	 	-	 	 	 	372,490	 	
Other Net Gains and Losses	 	 	(11,543,750	)	 	 	-	 	 	 	(11,543,750	)	 	 	(4,048,661	)	 	 	2,601,862	 	 	 	(6,650,523	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	(61,712,948	)	 	 	-	 	 	 	(61,712,948	)	 	 	(2,265,059	)	 	 	2,601,862	 	 	 	(4,866,921	)	
 
16.5	Other operating income	
 
Other operating income	 	For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Sell Carton & Wraps 	 	 	2,387,933	 	 	 	-	 	 	 	2,387,933	 	 	 	3,201,860	 	 	 	-	 	 	 	3,201,860	 	
Recovery of fees 	 	 	2,311,899	 	 	 	-	 	 	 	2,311,899	 	 	 	1,754,852	 	 	 	-	 	 	 	1,754,852	 	
Increase on revaluation of investment properties	 	 	56,392,525	 	 	 	-	 	 	 	56,392,525	 	 	 	26,367,626	 	 	 	-	 	 	 	26,367,626	 	
Other Income	 	 	5,157,822	 	 	 	883,399	 	 	 	4,274,423	 	 	 	5,273,336	 	 	 	198,188	 	 	 	5,075,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	66,250,179	 	 	 	883,399	 	 	 	65,366,780	 	 	 	36,597,674	 	 	 	198,188	 	 	 	36,399,486	 	

31

 
16.6                      Financial results

The following is the financial income detailed for the periods ended:

Financial results	 	For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	 	Total	 	 	Discontinued operation	 	 	Continued operation	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Financial income from cash flow hedging	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Other finance income 	 	 	13,496,972	 	 	 	862,350	 	 	 	12,634,622	 	 	 	5,557,353	 	 	 	269,291	 	 	 	5,288,062	 	

Financial income 	 	 	13,496,972	 	 	 	862,350	 	 	 	12,634,622	 	 	 	5,557,353	 	 	 	269,291	 	 	 	5,288,062	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Bank loan expenses 	 	 	(82,414,301	)	 	 	(33,329	)	 	 	(82,380,972	)	 	 	(74,376,015	)	 	 	(98,788	)	 	 	(74,277,227	)	
Bond debt expenses	 	 	(90,551,100	)	 	 	-	 	 	 	(90,551,100	)	 	 	(68,518,042	)	 	 	-	 	 	 	(68,518,042	)	
Interest on bank loans	 	 	(7,595,495	)	 	 	(5,195,830	)	 	 	(2,399,665	)	 	 	(19,770,124	)	 	 	(9,885,062	)	 	 	(9,885,062	)	
Valuation of financial derivatives expenses	 	 	(5,421,550	)	 	 	-	 	 	 	(5,421,550	)	 	 	22,868,703	 	 	 	-	 	 	 	22,868,703	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial Expenses	 	 	(185,982,447	)	 	 	(5,229,160	)	 	 	(180,753,287	)	 	 	(139,795,478	)	 	 	(9,983,850	)	 	 	(129,811,628	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Results from UF indexed bonds in Chile	 	 	(13,229,123	)	 	 	(38,046	)	 	 	(13,191,077	)	 	 	(26,267,131	)	 	 	(1,281,445	)	 	 	(24,985,686	)	
Results from UF indexed Brazil	 	 	(2,019,695	)	 	 	-	 	 	 	(2,019,695	)	 	 	(4,416,799	)	 	 	-	 	 	 	(4,416,799	)	
Results from UF indexed Other	 	 	(684,866	)	 	 	-	 	 	 	(684,866	)	 	 	3,033,553	 	 	 	-	 	 	 	3,033,553	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Losses) gains from indexation	 	 	(15,933,684	)	 	 	(38,046	)	 	 	(15,895,638	)	 	 	(27,650,377	)	 	 	(1,281,445	)	 	 	(26,368,932	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial debt IFC-ABN Argentina	 	 	(708,189	)	 	 	-	 	 	 	(708,189	)	 	 	(3,120,304	)	 	 	-	 	 	 	(3,120,304	)	
Bond debt USA and Peru	 	 	(94,969,051	)	 	 	2,760,915	 	 	 	(97,729,966	)	 	 	(22,562,193	)	 	 	(5,539,807	)	 	 	(17,022,386	)	
Financial debt Peru	 	 	(3,601,778	)	 	 	-	 	 	 	(3,601,778	)	 	 	(761,122	)	 	 	-	 	 	 	(761,122	)	
Financial assets and Financial debt—Colombia	 	 	(5,102,934	)	 	 	-	 	 	 	(5,102,934	)	 	 	150,070	 	 	 	-	 	 	 	150,070	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Exchange difference	 	 	(104,381,952	)	 	 	2,760,915	 	 	 	(107,142,867	)	 	 	(26,293,549	)	 	 	(5,539,807	)	 	 	(20,753,742	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial results total	 	 	(292,801,110	)	 	 	(1,643,940	)	 	 	(291,157,170	)	 	 	(188,182,051	)	 	 	(16,535,811	)	 	 	(171,646,240	)	

32

 
17	Income tax expense	
 
The charge (credit) to periodic results within the Interim consolidated statement of comprehensive income by function related to the income tax amounts were (M$ 33,859,507) as of September 30, 2015; and M$ 33,577,622, as of September 30, 2014, as the table bellow:
 
 	 	September 30, 2015	 	 	September 30, 2014	 	
Current and deferred income tax	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	
Net current income tax expense 	 	 	93,737,744	 	 	 	62,239,205	 	
Deferred tax (income) related to creation or reversal of temporary differences	 	 	(133,487,664	)	 	 	(28,661,583	)	
Deferred tax (income) related to changes in tax rates 	 	 	5,890,413	 	 	 	-	 	
Expense (income) for income tax	 	 	(33,859,507	)	 	 	33,577,622	 	
 
The increase in deferred income taxes as of September 30, 2015 is mainly explained by the recognition of deferred tax over the goodwill impairment in the Supermarkets segment - Brazil  (M$ 38,942,000); and because of the impact on new jurisprudence in Colombia, thaw allows the Company to use 2014 and 2013 losses in order to generate a compensation attributable to CREE tax by  (M$ 43,696,915).

33

 
18                            Information by segment
 
The Company reports the information by segment according to what is set forth in IFRS 8 “Operating Segments,” An operating segment is defined as a component of an entity over which separated financial information is available and is regularly reviewed.
 
In the information by segments, all transactions between the different operating segments have been eliminated.
 
18.1	Segmentation criteria	
 
For management purposes, the Company is organized in five operative divisions: Supermarkets, Shopping Centers, Home Improvement stores, Department stores and Financial Services. These segments are the basic on which the Company makes decisions with respect to its operations and resource allocation.
 
The operative segments are disclosed in a similar way with the presentation of the internal reports used by Management in the control and decision making process, considering the segments from a point of view according to the type of business and geographical area.
 
The operating segments that are reported derive their revenues mainly from the sale of products and rendering of services to final consumers of retail. There are no customers whose purchases represent more than 10% of the consolidated revenue, nor a specific business segment.
 
The rest of the minor activities, mainly including the travel agency and family-entertainment centers businesses, plus certain consolidation adjustments and corporate expenses administered centrally, are included in the segment “Support services, financing, adjustments and other”.

34

 
18.2	Regional information by segment	
 
The segment information which is delivered to the chief operating decision maker (“Board of Directors”) of the reportable segments for the nine months ended September 30, 2015 and September 30, 2014 in thousands of Chilean pesos is the following:
 
Regional information by segment
Consolidated statement of  income	 	Supermarkets	 	 	Shopping
Centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support
services,
financing,
adjustments
and other	 	 	Consolidated total	 	 	Discontinued operation financial services	 	
For the nine months ended September 30, 2015	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities 	 	 	5,885,988,552	 	 	 	175,735,788	 	 	 	1,046,987,247	 	 	 	708,227,741	 	 	 	118,858,833	 	 	 	6,685,205	 	 	 	7,942,483,366	 	 	 	(60,759,616	)	
Cost of sales 	 	 	(4,410,135,380	)	 	 	(24,021,672	)	 	 	(694,280,634	)	 	 	(504,370,200	)	 	 	(33,467,009	)	 	 	(3,353,010	)	 	 	(5,669,627,905	)	 	 	20,400,024	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin 	 	 	1,475,853,172	 	 	 	151,714,116	 	 	 	352,706,613	 	 	 	203,857,541	 	 	 	85,391,824	 	 	 	3,332,195	 	 	 	2,272,855,461	 	 	 	(40,359,592	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other revenues by function 	 	 	6,760,794	 	 	 	56,415,552	 	 	 	227,388	 	 	 	846,935	 	 	 	33,444	 	 	 	1,082,667	 	 	 	65,366,780	 	 	 	(436,450	)	
Sales, general and administrative expenses 	 	 	(1,292,710,153	)	 	 	(35,427,903	)	 	 	(294,032,914	)	 	 	(201,163,257	)	 	 	(49,068,263	)	 	 	(120,375,083	)	 	 	(1,992,777,573	)	 	 	17,371,214	 	
Financial expenses and income, net 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	14,223,102	 	 	 	(182,341,767	)	 	 	(168,118,665	)	 	 	14,223,102	 	
Participation in profit or loss of equity method associates	 	 	120,519	 	 	 	3,863,582	 	 	 	-	 	 	 	-	 	 	 	4,787,075	 	 	 	-	 	 	 	8,771,176	 	 	 	-	 	
Exchange differences	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(2,760,915	)	 	 	(104,381,952	)	 	 	(107,142,867	)	 	 	(2,760,915	)	
(Losses) from Indexation 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	38,046	 	 	 	(15,933,684	)	 	 	(15,895,638	)	 	 	38,046	 	
Other earnings (Losses), net 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(3,741	)	 	 	(61,709,207	)	 	 	(61,712,948	)	 	 	(3,741	)	
Income tax charge 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,683,876	 	 	 	31,175,631	 	 	 	33,859,507	 	 	 	2,683,876	 	
Profit attributable to Non-controlling interests 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	9,244,460	 	 	 	-	 	 	 	9,244,460	 	 	 	9,244,460	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit (loss)  	 	 	190,024,332	 	 	 	176,565,347	 	 	 	58,901,087	 	 	 	3,541,219	 	 	 	64,568,908	 	 	 	(449,151,200	)	 	 	44,449,693	 	 	 	-	 	
Profit (loss) from continued operations 	 	 	190,024,332	 	 	 	176,565,347	 	 	 	58,901,087	 	 	 	3,541,219	 	 	 	64,568,908	 	 	 	(449,151,200	)	 	 	35,205,233	 	 	 	(9,244,460	)	
Profit (loss) from discontinued operations 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	9,244,460	 	 	 	9,244,460	 	
Profit (loss) of attributable to non-controlling interest	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1,189,695	)	 	 	(1,189,695	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit for the year attributable to controlling shareholders, Total	 	 	190,024,332	 	 	 	176,565,347	 	 	 	58,901,087	 	 	 	3,541,219	 	 	 	64,568,908	 	 	 	(450,340,895	)	 	 	43,259,998	 	 	 	-	 	
Depreciation and amortization 	 	 	99,558,594	 	 	 	6,046,473	 	 	 	20,224,589	 	 	 	24,323,427	 	 	 	1,893,067	 	 	 	11,907,468	 	 	 	163,953,618	 	 	 	(715,030	)	

35

 
Consolidated statement of  income	 	Supermarkets	 	 	Shopping
Centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support
services,
financing,
adjustments
and other	 	 	Consolidated operation
total	 	 	Discontinued operation financial services	 	
For the nine months ended September 30, 2014	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities 	 	 	5,916,731,378	 	 	 	151,443,931	 	 	 	870,043,591	 	 	 	671,448,293	 	 	 	88,457,455	 	 	 	(1,928,092	)	 	 	7,696,196,556	 	 	 	(155,173,273	)	
Cost of sales 	 	 	(4,532,970,992	)	 	 	(16,525,636	)	 	 	(569,088,902	)	 	 	(502,447,243	)	 	 	(25,990,381	)	 	 	(3,361,401	)	 	 	(5,650,384,555	)	 	 	42,022,177	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin 	 	 	1,383,760,386	 	 	 	134,918,295	 	 	 	300,954,689	 	 	 	169,001,050	 	 	 	62,467,074	 	 	 	(5,289,493	)	 	 	2,045,812,001	 	 	 	(113,151,096	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other revenues by function 	 	 	7,108,909	 	 	 	26,429,354	 	 	 	725,185	 	 	 	722,909	 	 	 	(3	)	 	 	1,413,132	 	 	 	36,399,486	 	 	 	(198,189	)	
Sales, general and administrative expenses 	 	 	(1,212,871,609	)	 	 	(26,274,246	)	 	 	(230,342,844	)	 	 	(184,478,927	)	 	 	(29,517,709	)	 	 	(112,679,788	)	 	 	(1,796,165,123	)	 	 	51,522,250	 	
Financial expenses and income, net 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	29,252,884	 	 	 	(153,776,450	)	 	 	(124,523,566	)	 	 	29,252,884	 	
Participation in profit or loss of equity method associates	 	 	(606,444	)	 	 	3,769,144	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,162,700	 	 	 	-	 	
Exchange differences	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	15,653,220	 	 	 	(36,406,962	)	 	 	(20,753,742	)	 	 	15,653,220	 	
(Losses) from Indexation 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,652,430	 	 	 	(30,021,362	)	 	 	(26,368,932	)	 	 	3,652,430	 	
Other earnings (Losses), net 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,434,854	 	 	 	(19,607	)	 	 	(7,282,168	)	 	 	(4,866,921	)	 	 	(19,607	)	
Income tax charge 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,657,622	 	 	 	(36,235,244	)	 	 	(33,577,622	)	 	 	2,657,622	 	
Profit attributable to Non-controlling interests 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	10,630,486	 	 	 	-	 	 	 	10,630,486	 	 	 	10,630,486	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit (loss)  	 	 	177,391,242	 	 	 	138,842,547	 	 	 	71,337,030	 	 	 	(12,320,114	)	 	 	94,776,397	 	 	 	(380,278,335	)	 	 	89,748,767	 	 	 	-	 	
Profit (loss) from continued operations 	 	 	177,391,242	 	 	 	138,842,547	 	 	 	71,337,030	 	 	 	(12,320,114	)	 	 	94,776,397	 	 	 	(380,278,335	)	 	 	79,118,281	 	 	 	(10,630,486	)	
Profit (loss) from discontinued operations 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	10,630,486	 	 	 	10,630,486	 	
Profit (loss) of attributable to non-controlling interest	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(221,189	)	 	 	(221,189	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit for the year attributable to controlling shareholders, Total	 	 	177,391,242	 	 	 	138,842,547	 	 	 	71,337,030	 	 	 	(12,320,114	)	 	 	94,776,397	 	 	 	(380,499,524	)	 	 	89,527,578	 	 	 	-	 	
Depreciation and amortization 	 	 	100,113,393	 	 	 	4,138,265	 	 	 	15,083,520	 	 	 	19,391,699	 	 	 	1,390,779	 	 	 	8,302,691	 	 	 	148,420,347	 	 	 	1,691,568	 	
 
The Company controls the results of each of the operating segments, at the level of revenues, costs and management expenses. The support services, exchange rates, readjustments, taxes and non-recurring income and expense, or financial income, are not allocated, as they are centrally managed.
 
The financing policy of the Group has been historically getting financed and managing these resources through the Company Holding Cencosud S,A., the funds are subsequently transferred to other countries as required to finance the local investments. This policy aims to reduce the financial cost of the Group.

36

 
18.3	Gross margin by country and segment, in thousands of Chilean pesos:	
 
Gross margin by country and segment
 
For the nine months ended  September 30, 2015	 	Supermarkets	 	 	Shopping
centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support services,
financing,
adjustments
and other	 	 	Consolidated
total	 	 	Discontinued operation financial services	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	

Chile	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total 	 	 	1,820,920,259	 	 	 	94,568,866	 	 	 	360,856,366	 	 	 	669,141,272	 	 	 	2,248,718	 	 	 	2,760,350	 	 	 	2,950,495,831	 	 	 	(60,759,616	)	
Cost of sales	 	 	(1,372,889,506	)	 	 	(4,416,429	)	 	 	(261,984,986	)	 	 	(472,477,489	)	 	 	427,291	 	 	 	(199,594	)	 	 	(2,111,540,713	)	 	 	20,400,024	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	448,030,753	 	 	 	90,152,437	 	 	 	98,871,380	 	 	 	196,663,783	 	 	 	2,676,009	 	 	 	2,560,756	 	 	 	838,955,118	 	 	 	(40,359,592	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Argentina	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	1,551,906,276	 	 	 	60,578,614	 	 	 	639,021,582	 	 	 	-	 	 	 	73,644,249	 	 	 	5,852,781	 	 	 	2,331,003,502	 	 	 	-	 	
Cost of sales	 	 	(1,060,439,101	)	 	 	(17,171,577	)	 	 	(396,259,056	)	 	 	-	 	 	 	(18,261,973	)	 	 	(2,735,510	)	 	 	(1,494,867,217	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	491,467,175	 	 	 	43,407,037	 	 	 	242,762,526	 	 	 	-	 	 	 	55,382,276	 	 	 	3,117,271	 	 	 	836,136,285	 	 	 	-	 	

Brazil	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	1,276,039,585	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	4,216,705	 	 	 	-	 	 	 	1,280,256,290	 	 	 	-	 	
Cost of sales	 	 	(1,001,899,167	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1,001,899,167	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	274,140,418	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	4,216,705	 	 	 	-	 	 	 	278,357,123	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peru	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	622,189,402	 	 	 	13,741,460	 	 	 	-	 	 	 	39,086,469	 	 	 	34,451,236	 	 	 	795,078	 	 	 	710,263,645	 	 	 	-	 	
Cost of sales	 	 	(482,644,513	)	 	 	(2,198,632	)	 	 	-	 	 	 	(31,892,711	)	 	 	(15,632,369	)	 	 	(696,483	)	 	 	(533,064,708	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	139,544,889	 	 	 	11,542,828	 	 	 	-	 	 	 	7,193,758	 	 	 	18,818,867	 	 	 	98,595	 	 	 	177,198,937	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Colombia	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	614,933,030	 	 	 	6,846,848	 	 	 	47,109,299	 	 	 	-	 	 	 	4,297,925	 	 	 	(2,723,004	)	 	 	670,464,098	 	 	 	-	 	
Cost of sales	 	 	(492,263,093	)	 	 	(235,034	)	 	 	(36,036,592	)	 	 	-	 	 	 	42	 	 	 	278,577	 	 	 	(528,256,100	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	122,669,937	 	 	 	6,611,814	 	 	 	11,072,707	 	 	 	-	 	 	 	4,297,967	 	 	 	(2,444,427	)	 	 	142,207,998	 	 	 	-	 	

37

 
Gross margin by country and segment
 
For the nine months ended  September 30, 2014	 	Supermarkets	 	 	Shopping
centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support services,
financing,
adjustments
and other	 	 	Consolidated
total	 	 	Discontinued operation financial services	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chile	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total 	 	 	1,691,068,939	 	 	 	85,261,995	 	 	 	337,244,442	 	 	 	647,076,514	 	 	 	329,539	 	 	 	(861,193	)	 	 	2,760,120,236	 	 	 	(155,173,273	)	
Cost of sales	 	 	(1,278,907,218	)	 	 	(4,031,002	)	 	 	(242,872,304	)	 	 	(480,055,068	)	 	 	(260,541	)	 	 	(427,779	)	 	 	(2,006,553,912	)	 	 	42,022,177	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	412,161,721	 	 	 	81,230,993	 	 	 	94,372,138	 	 	 	167,021,446	 	 	 	68,998	 	 	 	(1,288,972	)	 	 	753,566,324	 	 	 	(113,151,096	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Argentina	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	1,285,766,639	 	 	 	46,024,675	 	 	 	484,150,393	 	 	 	-	 	 	 	48,481,160	 	 	 	2,536,845	 	 	 	1,866,959,712	 	 	 	-	 	
Cost of sales	 	 	(892,081,599	)	 	 	(11,893,440	)	 	 	(289,728,899	)	 	 	-	 	 	 	(9,624,467	)	 	 	(1,837,086	)	 	 	(1,205,165,491	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	393,685,040	 	 	 	34,131,235	 	 	 	194,421,494	 	 	 	-	 	 	 	38,856,693	 	 	 	699,759	 	 	 	661,794,221	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Brazil	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	1,605,601,961	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,355,593	 	 	 	-	 	 	 	1,605,601,961	 	 	 	-	 	
Cost of sales	 	 	(1,300,525,255	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1,300,525,255	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	305,076,706	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,355,593	 	 	 	-	 	 	 	307,432,299	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peru	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	603,643,514	 	 	 	12,522,204	 	 	 	-	 	 	 	24,371,779	 	 	 	31,042,242	 	 	 	698,660	 	 	 	672,278,399	 	 	 	-	 	
Cost of sales	 	 	(472,232,058	)	 	 	(315,433	)	 	 	-	 	 	 	(22,392,175	)	 	 	(16,105,373	)	 	 	(1,001,689	)	 	 	(512,046,728	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	131,411,456	 	 	 	12,206,771	 	 	 	-	 	 	 	1,979,604	 	 	 	14,936,869	 	 	 	(303,029	)	 	 	160,231,671	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Colombia	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary income, total	 	 	730,650,325	 	 	 	7,635,057	 	 	 	48,648,756	 	 	 	-	 	 	 	6,248,921	 	 	 	(4,302,404	)	 	 	788,880,655	 	 	 	-	 	
Cost of sales	 	 	(589,224,862	)	 	 	(285,761	)	 	 	(36,487,699	)	 	 	-	 	 	 	-	 	 	 	(94,847	)	 	 	(626,093,169	)	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	141,425,463	 	 	 	7,349,296	 	 	 	12,161,057	 	 	 	-	 	 	 	6,248,921	 	 	 	(4,397,251	)	 	 	162,787,486	 	 	 	-	 	

38

 
18.4	Regional information by segment: Total assets	
 
 	 	Supermarkets	 	 	Shopping
centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support services,
financing,
adjustments
and other	 	 	Consolidated
total	 	
At September 30, 2015	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Current Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	83,289,991	 	 	 	5,289,552	 	 	 	10,792,892	 	 	 	18,414,686	 	 	 	2,578,089	 	 	 	103,320,257	 	 	 	223,685,467	 	
Other financial assets, current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	135,163,485	 	 	 	135,163,485	 	
Other non-financial assets, current	 	 	7,354,274	 	 	 	3,188,363	 	 	 	2,813,644	 	 	 	1,736,503	 	 	 	301,641	 	 	 	3,472,590	 	 	 	18,867,015	 	
Trade receivables and other receivables	 	 	262,265,337	 	 	 	41,561,114	 	 	 	52,124,316	 	 	 	53,470,491	 	 	 	370,634,905	 	 	 	12,927,010	 	 	 	792,983,173	 	
Receivables due from related entities, current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	8,950,636	 	 	 	8,950,636	 	
Inventory	 	 	719,258,905	 	 	 	-	 	 	 	279,066,706	 	 	 	187,774,576	 	 	 	-	 	 	 	-	 	 	 	1,186,100,187	 	
Current tax assets	 	 	13,266,520	 	 	 	17,043,023	 	 	 	4,413,705	 	 	 	12,294,226	 	 	 	1,181,497	 	 	 	39,610,226	 	 	 	87,809,197	 	
Assets held for sale, current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Total current assets	 	 	1,085,435,027	 	 	 	67,082,052	 	 	 	349,211,263	 	 	 	273,690,482	 	 	 	374,696,132	 	 	 	303,444,204	 	 	 	2,453,559,160	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-Current Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other financial assets, non-current 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	488,451,066	 	 	 	488,451,066	 	
Other non-financial assets, non-current 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	34,346,210	 	 	 	34,346,210	 	
Trade receivables and other receivables, non-current	 	 	15,874,137	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	14,537,962	 	 	 	583,349	 	 	 	30,995,448	 	
Equity method investments	 	 	931,798	 	 	 	51,908,886	 	 	 	-	 	 	 	-	 	 	 	193,921,068	 	 	 	-	 	 	 	246,761,752	 	
Intangible assets other than goodwill	 	 	204,692,380	 	 	 	156,184	 	 	 	9,831,564	 	 	 	156,213,519	 	 	 	4,295,760	 	 	 	33,260,279	 	 	 	408,449,686	 	
Goodwill	 	 	1,192,731,131	 	 	 	32,967,009	 	 	 	4,585,163	 	 	 	138,159,463	 	 	 	54,683,032	 	 	 	-	 	 	 	1,423,125,798	 	
Property, plant and equipment	 	 	1,801,573,817	 	 	 	411,369,694	 	 	 	354,363,307	 	 	 	259,003,753	 	 	 	3,637,797	 	 	 	21,215,664	 	 	 	2,851,164,032	 	
Investment property	 	 	-	 	 	 	1,732,195,691	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,732,195,691	 	
Income tax assets, non-current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	11,004,061	 	 	 	11,004,061	 	
Deferred income tax assets	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	574,985,648	 	 	 	574,985,648	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total non-current assets	 	 	3,215,803,263	 	 	 	2,228,597,464	 	 	 	368,780,034	 	 	 	553,376,735	 	 	 	271,075,619	 	 	 	1,163,846,277	 	 	 	7,801,479,392	 	
Total Assets	 	 	4,301,238,290	 	 	 	2,295,679,516	 	 	 	717,991,297	 	 	 	827,067,217	 	 	 	645,771,751	 	 	 	1,467,290,481	 	 	 	10,255,038,552	 	

39

 	 	Supermarkets	 	 	Shopping
centers	 	 	Home
improvement	 	 	Department
stores	 	 	Financial
services	 	 	Support services,
financing,
adjustments
and other	 	 	Consolidated
total	 	
At December 31, 2014	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Current Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	152,859,721	 	 	 	6,462,947	 	 	 	11,252,555	 	 	 	26,745,107	 	 	 	16,820,985	 	 	 	4,730,478	 	 	 	218,871,793	 	
Other financial assets, current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	47,778,995	 	 	 	47,778,995	 	
Other non-financial assets, current	 	 	4,081,250	 	 	 	1,174,486	 	 	 	2,264,731	 	 	 	828,702	 	 	 	183,117	 	 	 	2,114,206	 	 	 	10,646,492	 	
Trade receivables and other receivables	 	 	322,351,096	 	 	 	33,472,707	 	 	 	60,528,075	 	 	 	43,259,975	 	 	 	311,292,653	 	 	 	10,672,248	 	 	 	781,576,754	 	
Receivables due from related entities, current	 	 	-	 	 	 	1,371,016	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,371,016	 	
Inventory	 	 	700,587,712	 	 	 	-	 	 	 	238,454,570	 	 	 	155,567,301	 	 	 	-	 	 	 	-	 	 	 	1,094,609,583	 	
Current tax assets	 	 	1,500,907	 	 	 	1,458,328	 	 	 	755,879	 	 	 	6,884,749	 	 	 	2,357,468	 	 	 	41,239,086	 	 	 	54,196,417	 	
Assets held for sale, current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	793,416,576	 	 	 	-	 	 	 	793,416,576	 	
Total current assets	 	 	1,181,380,686	 	 	 	43,939,484	 	 	 	313,255,810	 	 	 	233,285,834	 	 	 	1,124,070,799	 	 	 	106,535,013	 	 	 	3,002,467,626	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-Current Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other financial assets, non-current 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	302,479,598	 	 	 	302,479,598	 	
Other non-financial assets, non-current 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	33,873,417	 	 	 	33,873,417	 	
Trade receivables and other receivables, non-current	 	 	20,154,938	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	13,202,701	 	 	 	1,419,716	 	 	 	34,777,355	 	
Equity method investments	 	 	752,427	 	 	 	51,495,487	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	52,247,914	 	
Intangible assets other than goodwill	 	 	202,601,955	 	 	 	119,575	 	 	 	6,246,077	 	 	 	153,168,871	 	 	 	3,607,455	 	 	 	34,798,247	 	 	 	400,542,180	 	
Goodwill	 	 	1,444,501,573	 	 	 	35,813,194	 	 	 	4,436,254	 	 	 	138,159,463	 	 	 	59,438,079	 	 	 	-	 	 	 	1,682,348,563	 	
Property, plant and equipment	 	 	2,048,467,430	 	 	 	356,180,482	 	 	 	309,921,733	 	 	 	261,250,882	 	 	 	3,600,107	 	 	 	30,307,822	 	 	 	3,009,728,456	 	
Investment property	 	 	-	 	 	 	1,663,592,396	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,663,592,396	 	
Income tax assets, non-current	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	43,047,543	 	 	 	43,047,543	 	
Deferred income tax assets	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	491,398,181	 	 	 	491,398,181	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total non-current assets	 	 	3,716,478,323	 	 	 	2,107,201,134	 	 	 	320,604,064	 	 	 	552,579,216	 	 	 	79,848,342	 	 	 	937,324,524	 	 	 	7,714,035,603	 	
Total Assets	 	 	4,897,859,009	 	 	 	2,151,140,618	 	 	 	633,859,874	 	 	 	785,865,050	 	 	 	1,203,919,141	 	 	 	1,043,859,537	 	 	 	10,716,503,229	 	

40

 
18.5	Current Asset and liabilities by segment	

 	 	Supermarkets
ThCh$	 	 	Shopping Center
ThCh$	 	 	Home Improvement ThCh$	 	 	Department Stores ThCh$	 	 	Financial Services (Insurance + cards + bank)
ThCh$	 	 	Support Services, Financing, and Other Settings
ThCh$	 	 	Total Consolidated ThCh$	 	
Regional information by segment
Current assets and liabilities
at September 30, 2015	 		 	 		 	 		 	 		 	 		 	 		 	 		 	
Trade accounts payable and other payables	 	 	1,124,795,433	 	 	 	37,378,639	 	 	 	270,263,331	 	 	 	199,014,276	 	 	 	37,385,675	 	 	 	28,282,397	 	 	 	1,697,119,751	 	

Regional information by segment
Current assets and liabilities
at December 31, 2014	 	Supermarkets	 	 	Shopping
Center	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services
(Insurance +
cards + bank)	 	 	Support
Services,
Financing, and
Other Settings	 	 	Total
Consolidated	 	
	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Trade accounts payable and other payables	 	 	1,338,355,251	 	 	 	48,485,417	 	 	 	249,240,761	 	 	 	223,566,217	 	 	 	60,003,612	 	 	 	38,087,010	 	 	 	1,957,738,268	 	
 
18.6	Information by country, assets and liabilities	
 
In thousands of Chilean pesos:
 
Assets and liabilities by country
 
 	 	Chile	 	 	Argentina	 	 	Brazil	 	 	Peru	 	 	Colombia	 	 	Consolidated
total	 	
At September 30, 2015	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Total assets	 	 	4,758,434,448	 	 	 	1,476,462,232	 	 	 	1,133,185,416	 	 	 	1,250,304,467	 	 	 	1,636,651,989	 	 	 	10,255,038,552	 	
Total liabilities	 	 	4,128,656,379	 	 	 	829,668,111	 	 	 	435,410,913	 	 	 	365,221,333	 	 	 	404,903,565	 	 	 	6,163,860,301	 	
Total Net equity	 	 	1,122,797,393	 	 	 	795,738,672	 	 	 	402,863,682	 	 	 	708,866,148	 	 	 	1,060,912,356	 	 	 	4,091,178,251	 	
Adjustments to net investment	 	 	(493,019,324	)	 	 	(148,944,551	)	 	 	294,910,821	 	 	 	176,216,986	 	 	 	170,836,068	 	 	 	-	 	
Net investment	 	 	629,778,069	 	 	 	646,794,121	 	 	 	697,774,503	 	 	 	885,083,134	 	 	 	1,231,748,424	 	 	 	4,091,178,251	 	
         Percentage of  Net equity	 	 	27.4	%	 	 	19.5	%	 	 	9.8	%	 	 	17.3	%	 	 	25.9	%	 	 	100.0	%	
     Percentage of equity	 	 	15.4	%	 	 	15.8	%	 	 	17.1	%	 	 	21.6	%	 	 	30.1	%	 	 	100.0	%	
 
 	Chile	Argentina	Brazil	Peru	Colombia	Consolidated
total	
At December 31, 2014	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	
Total assets	4,950,428,641	1,335,607,168	1,554,510,379	1,180,226,630	1,695,730,411	10,716,503,229	
Total liabilities	3,891,354,582	756,061,392	774,639,936	459,527,050	543,434,458	6,425,017,418	
Total Net equity	1,057,057,189	689,904,414	779,870,443	612,357,812	1,152,295,953	4,291,485,811	
Adjustments to net investment	2,016,870	(110,358,638)	-	108,341,768	-	-	
Net investment	1,059,074,059	579,545,776	779,870,443	720,699,580	1,152,295,953	4,291,485,811	
   Percentage of  Net equity	24.6%	16.1%	18.2%	14.3%	26.9%	100.0%	
   Percentage of equity	24.7%	13.5%	18.2%	16.8%	26.9%	100.0%	

41

 
18.7	Regional information, including intersegments is as follows:	

 
 
 	 	For the nine months ended September 30, 2015	 	
Regional information, by segment	 	Total revenue
by segment	 	 	Total revenue
intra-segment	 	 	Total segment
revenue	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Supermarkets 	 	 	5,885,988,552	 	 	 	-	 	 	 	5,885,988,552	 	
Shopping 	 	 	278,141,406	 	 	 	102,405,618	 	 	 	175,735,788	 	
Home Improvement	 	 	1,048,594,392	 	 	 	1,607,145	 	 	 	1,046,987,247	 	
Department stores	 	 	708,227,741	 	 	 	-	 	 	 	708,227,741	 	
Financial Services	 	 	118,858,833	 	 	 	-	 	 	 	118,858,833	 	
Others	 	 	6,685,205	 	 	 	-	 	 	 	6,685,205	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	 	 	8,046,496,129	 	 	 	104,012,763	 	 	 	7,942,483,366	 	

 	 	For the nine months ended September 30, 2014	 	
Regional information, by segment	 	Total segment
revenue	 	 	Total segment
revenue	 	 	Total segment
revenue	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Supermarkets	 	 	5,916,731,378	 	 	 	-	 	 	 	5,916,731,378	 	
Shopping	 	 	258,305,840	 	 	 	106,861,909	 	 	 	151,443,931	 	
Home Improvement	 	 	876,729,637	 	 	 	6,686,046	 	 	 	870,043,591	 	
Department stores	 	 	671,448,293	 	 	 	-	 	 	 	671,448,293	 	
Financial Services	 	 	88,457,455	 	 	 	-	 	 	 	88,457,455	 	
Others	 	 	(1,928,092	)	 	 	-	 	 	 	(1,928,092	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	 	 	7,809,744,511	 	 	 	113,547,955	 	 	 	7,696,196,556	 	

42

 
18.8	Non-current assets by country	

At September 30, 2015	Chile	Argentina	Brazil	Peru	Colombia	Consolidated
total	
 	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	
Other non-financial assets	 25,556,535	 6,753,733	 -	 2,029,502	 6,440	 34,346,210	
Trade receivables and other receivables	 9,878,081	 5,255,533	 15,861,834	 -	 -	 30,995,448	
Equity Method investments	 245,829,954	 -	 -	 931,798	 -	 246,761,752	
Intangible assets other than goodwill	 207,424,786	 20,926,373	 55,095,233	 115,627,488	 9,375,806	 408,449,686	
Goodwill	 246,378,878	 3,514,895	 339,673,364	 286,728,338	 546,830,323	 1,423,125,798	
Property Plant and Equipment	 1,168,996,915	 346,413,824	 313,907,020	 389,655,540	 632,190,733	 2,851,164,032	
Investment Property	 1,312,905,232	 215,527,216	 -	 176,266,743	 27,496,500	 1,732,195,691	
Income tax assets, non-current	 9,925,893	 1,078,168	 -	 -	 -	 11,004,061	
 	 	 	 	 	 	 	
Non -current assets—Total	 3,226,896,274	 599,469,742	 724,537,451	 971,239,409	 1,215,899,802	 6,738,042,678	
 
At December 31, 2014	Chile	Argentina	Brazil	Peru	Colombia	Consolidated
total	
 	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	ThCh$	
Other non-financial assets	 25,929,866	 6,211,511	 -	 1,725,040	 7,000	 33,873,417	
Trade receivables and other receivables	 11,092,704	 3,760,685	 19,923,966	 -	 -	 34,777,355	
Equity Method investments	 51,495,487	 -	 -	 752,427	 -	 52,247,914	
Intangible assets other than goodwill	 191,711,948	 14,880,200	 75,035,961	 107,805,013	 11,109,058	 400,542,180	
Goodwill	 246,378,878	 3,359,143	 569,584,936	 268,644,820	 594,380,786	 1,682,348,563	
Property Plant and Equipment	 1,190,341,063	 336,413,924	 404,896,191	 369,333,777	 708,743,501	 3,009,728,456	
Investment Property	 1,268,128,765	 205,318,919	 -	 160,257,212	 29,887,500	 1,663,592,396	
Income tax assets, non-current	 42,190,641	 856,902	 -	 -	 -	 43,047,543	
 	 	 	 	 	 	 	
Non -current assets—Total	 3,027,269,352	 570,801,284	 1,069,441,054	 908,518,289	 1,344,127,845	 6,920,157,824	
 
The amounts for non-current assets by country shown in this note exclude other non-current financial assets, deferred tax assets as per IFRS 8.

43

 
18.9	Consolidated Cash Flow by segment:	

 	 	Supermarkets	 	 	Shopping
Center	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services
(Insurance +
cards +
bank)	 	 	Support
Services,
Financing,
and Other
Settings	 	 	Total
Consolidated	 	 	Discontinued operation financial services	 	
Regional information by segment Consolidated
Segment Flows at September 30, 2015	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Net cash flows from (used in) operating
activities 	 	 	198,784,389	 	 	 	79,783,556	 	 	 	(62,569,516	)	 	 	(18,018,422	)	 	 	107,702,192	 	 	 	(84,005,938	)	 	 	221,676,261	 	 	 	(107,449,303	)	
Net cash flows from (used in) investing
activities 	 	 	(75,845,599	)	 	 	(10,297,913	)	 	 	(10,035,936	)	 	 	(18,122,924	)	 	 	327,085,535	 	 	 	(10,274,997	)	 	 	202,508,166	 	 	 	(750,271	)	
Net cash flows from (used in) financing
activities 	 	 	(199,515,539	)	 	 	(70,571,246	)	 	 	71,680,367	 	 	 	27,810,925	 	 	 	(449,030,623	)	 	 	178,909,455	 	 	 	(440,716,661	)	 	 	35,258,696	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regional information by segment Consolidated
Segment Flows at September 30, 2014	 	Supermarkets	 	 	Shopping
Center	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services
(Insurance +
cards +
bank)	 	 	Support
Services,
Financing,
and Other
Settings	 	 	Total
Consolidated	 	 	Discontinued operation financial services	 	
	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Net cash flows from (used in) operating
activities 	 	 	180,229,194	 	 	 	76,028,136	 	 	 	(21,301,555	)	 	 	(50,683,677	)	 	 	9,204,213	 	 	 	(106,136,187	)	 	 	87,340,124	 	 	 	(10,136,575	)	
Net cash flows from (used in) investing
activities 	 	 	(97,370,258	)	 	 	(32,786,681	)	 	 	(15,105,458	)	 	 	(8,830,698	)	 	 	(6,026,977	)	 	 	(6,808,010	)	 	 	(166,928,082	)	 	 	76,229,178	 	
Net cash flows from (used in) financing
activities 	 	 	(169,249,355	)	 	 	(13,006,557	)	 	 	31,230,278	 	 	 	63,091,440	 	 	 	(657,213	)	 	 	114,644,750	 	 	 	26,053,343	 	 	 	(66,092,603	)	
 
18.10	Additions to non-current assets:	
 
 	 	Supermarkets	 	 	Shopping
Center	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services
(Insurance +
cards +
bank)	 	 	Support
Services,
Financing,
and Other
Settings	 	 	Total
Consolidated	 	
As of September 30, 2015	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Property plant and equipment	 	 	61,603,492	 	 	 	9,961,449	 	 	 	10,832,290	 	 	 	16,097,311	 	 	 	272,647	 	 	 	3,353,360	 	 	 	102,120,549	 	
Intangible asset, other that goodwill	 	 	9,154,723	 	 	 	107,338	 	 	 	2,437,686	 	 	 	5,589,098	 	 	 	23,720	 	 	 	7,236,188	 	 	 	24,548,753	 	
Goodwill	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Investment properties	 	 	-	 	 	 	5,739,254	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	5,739,254	 	
Total additions	 	 	70,758,215	 	 	 	15,808,041	 	 	 	13,269,976	 	 	 	21,686,409	 	 	 	296,367	 	 	 	10,589,548	 	 	 	132,408,556	 	

 
44

 
 	 	Supermarkets	 	 	Shopping
Center	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services
(Insurance +
cards +
bank)	 	 	Support
Services,
Financing,
and Other
Settings	 	 	Total
Consolidated	 	
As of December 31, 2014	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Property plant and equipment	 	 	112,859,466	 	 	 	18,802,562	 	 	 	12,941,331	 	 	 	22,010,115	 	 	 	660,035	 	 	 	16,420,023	 	 	 	183,693,532	 	
Intangible asset, other that goodwill	 	 	13,062,984	 	 	 	36,232	 	 	 	664,554	 	 	 	371,636	 	 	 	1,370,169	 	 	 	4,203,510	 	 	 	19,709,085	 	
Goodwill	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Investment properties	 	 	-	 	 	 	25,060,310	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	25.060,310	 	
Total additions	 	 	125,922,450	 	 	 	43,899,104,	 	 	 	13,605,885	 	 	 	22,381,751	 	 	 	2,030,204	 	 	 	20,623,533	 	 	 	228,462,927	 	

45

 
18.11	Bank statements Paris:	
 
Below is the classified financial information of Banco Paris used in the consolidation of Cencosud S.A., as of September 30, 2015 and December 31, 2014
 
 	 	As of	 	
Assets	 	9/30/2015	 	 	12/31/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	2,280,287	 	 	 	16,005,243	 	
Other financial assets, current	 	 	97,931,132	 	 	 	9,990,759	 	
Trade receivables and other receivables	 	 	2,758,804	 	 	 	106,543,456	 	
Current tax assets	 	 	861,025	 	 	 	1,664,830	 	

Total current assets	 	 	103,831,248	 	 	 	134,204,288	 	
 	 	 	 	 	 	 	 	 	
Non-current assets	 	 	 	 	 	 	 	 	
Other non-financial assets, non-current	 	 	11,762	 	 	 	11,658	 	
Trade receivable and other receivables, non-current	 	 	9,665,732	 	 	 	100,530,025	 	
Receivables from related entities, non-current	 	 	-	 	 	 	396,861	 	
Intangible assets other than goodwill	 	 	4,279,318	 	 	 	3,205,105	 	
Property, plant and equipment	 	 	760,914	 	 	 	695,289	 	
Deferred income tax assets	 	 	6,899,718	 	 	 	5,777,461	 	
 	 	 	 	 	 	 	 	 	
Total non-current assets	 	 	21,617,444	 	 	 	110,616,399	 	
 	 	 	 	 	 	 	 	 	
Total assets	 	 	125,448,692	 	 	 	244,820,687	 	

 	 	As of	 	
Net equity and liabilities	 	9/30/2015	 	 	12/31/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	
Other financial liabilities, current 	 	 	59,961,465	 	 	 	134,403,164	 	
Trade payables and other payables 	 	 	3,753,065	 	 	 	8,659,514	 	
Payables to related entities, current 	 	 	221,945	 	 	 	-	 	
Current income tax liabilities 	 	 	117,098	 	 	 	2,040,819	 	
Current provision for employee benefits 	 	 	19,321	 	 	 	402,241	 	
 	 	 	 	 	 	 	 	 	
Total current liabilities 	 	 	64,072,894	 	 	 	145,505,738	 	
Non-current liabilities	 	 	 	 	 	 	 	 	
Other financial liabilities, 	 	 	8,424,656	 	 	 	49,183,735	 	
Trade accounts payables 	 	 	5,456,876	 	 	 	3,759,019	 	
Deferred income tax liabilities 	 	 	1,175,094	 	 	 	1,408,928	 	
 	 	 	 	 	 	 	 	 	
Total non-current liabilities 	 	 	15,056,626	 	 	 	54,351,682	 	
 	 	 	 	 	 	 	 	 	
Total liabilities 	 	 	79,129,520	 	 	 	199,857,420	 	
 	 	 	 	 	 	 	 	 	
Net equity	 	 	 	 	 	 	 	 	
Paid-in capital 	 	 	39,579,421	 	 	 	39,579,421	 	
Retained earnings (accumulated losses) 	 	 	1,935,385	 	 	 	3,543,402	 	
Other reserves 	 	 	4,804,366	 	 	 	1,840,444	 	
 	 	 	 	 	 	 	 	 	
Net equity attributable to controlling shareholders 	 	 	46,319,172	 	 	 	44,963,267	 	
Non-controlling interest 	 	 	-	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	
Total net equity 	 	 	46,319,172	 	 	 	44,963,267	 	
 	 	 	 	 	 	 	 	 	
Total net equity and liabilities 	 	 	125,448,692	 	 	 	244,820,687	 	

46

 
Below is the classified financial information of Banco Paris used in the consolidation of Cencosud S.A., as of September 30, 2015 and 2014,
 
 	 	For the nine months ended
September 30,	 	
Statement of integral income	 	2015	 	 	2014	 	
	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities 	 	 	18,167,725	 	 	 	39,878,673	 	
Cost of Sales 	 	 	(3,010,946	)	 	 	(5,075,553	)	
Gross Margin 	 	 	15,156,779	 	 	 	34,803,120	 	
Administrative expenses 	 	 	(13,467,566	)	 	 	(20,270,460	)	
Financial income 	 	 	748,726	 	 	 	259,620	 	
Financial expenses 	 	 	(5,195,830	)	 	 	(9,885,062	)	
Other gain (losses)	 	 	3,519,445	 	 	 	(1,082	)	
Exchange differences 	 	 	97,902	 	 	 	(2,143	)	
Profit before tax 	 	 	859,456	 	 	 	4,903,993	 	
Income tax charge 	 	 	1,075,929	 	 	 	(710,763	)	
Profit from ongoing operations 	 	 	1,935,385	 	 	 	4,193,230	 	
Net income 	 	 	1,935,385	 	 	 	4,193,230	 	
On April 2015, the Board of Directors of Cencosud S.A. has agreed to entrust an investment bank the beginning of the process of selling Banco Paris. This process is expected to be conducted during the coming months.
 
19	Restrictions, contingencies, legal proceedings and other matters	
 
•	The subsidiaries Cencosud Retail S.A. and Easy S.A in Chile are involved in lawsuits and litigation that are pending as of September 30, 2015. The amounts of these claims are covered by a civil liability insurance policy.	
 
•	On June 2015 the Viña del Mar municipality constructions authority declared the expiration of the building permission # 1349 of 2000, as a result of that, the Municipality ordered the stagnation of the Cencosud’s investment project, carried out by the controlled subsidiary Inmobiliaria Mall Viña del Mar S.A., up to a new permission is obtained. Cencosud did not share the decision; hence it was appealed in August 14 th , 2015. After proofs were carried out, the Company is expecting for the Appellations Court to decide the controversy as a final instance. Legal advisors consider highly probable that a positive outcome is given to restart the project developing.	
 
•	On May 22, 2015 the municipality constructions authority of Vitacura ordered the stagnation of the project developed by Cencosud Shopping Centers S.A., on the piece of land located at the 8950 of Kennedy Avenue in Santiago. This Municipality based its decision on the fact that the construction does not have the required permission. The Company filed an appeal to the metropolitan administrative authority (Secretaria Regional Ministerial - SEREMI), who issued a ruling accepting the Company`s pretentions and ordering the Municipality to adjust its decision. On November 25, 2015, SEREMI issued an extended ruling, which reverted its previous position base on the Public Ministry’s opinion.	
 
 	Cencosud will keep following the legal channels to obtain a positive outcome. It is estimated that the chances of obtaining a favorable outcome to the position of the Company are reasonably higher than obtaining an unfavorable outcome.	
 
•	An indirectly controlled subsidiary of Cencosud S,A in Colombia is involved in litigations regarding extra contractual civil responsibility. The amounts of these claims are covered by a civil liability insurance policy.	

47

 
•	A civil lawsuit was filed against the indirectly controlled affiliate GBarbosa Comercial (Brazil) by the Public Employees Union in supermarkets in the State of Sergipe, which is awaiting the first instance ruling. The union is seeking compensation for overtime hours for all employees of the subsidiary for the period after May 2007. The petition was filed and supported by the ruling, albeit still not judicial, that was issued through another public civil claim, which annulled a bank of hours from May 2007 to April 2009.	
 
Based on the opinion of a legal advisor, we cannot estimate the value of the case given the complexity of the calculations related to the process, as well as the absence of sufficient evidence in the file in order to quantify.
 
•	On May 7, 2015 Cencosud S.A. was requested by the Chilean taxation office (Servicio de Impuestos Internos – SII) being charged with a taxable omission within its 2013 refund, regarding the transference of its owned shares of the Argentinean society Cencosud S.A., to its subsidiary Cencosud Argentina S.P.A (Chile), while this society was created. SII considers that the mentioned shares were undervalued; therefore, there is an assessable capital gain which has to be taxed and paid by Cencosud S.A. The Company does not share the authority’s objection, thus an appeal was filled and supported on May 25 th , 2015. Legal advisors consider that authority’s resolution has violated legal provisions, so it is reasonably possible to obtain a favorable ruling.	
 
•	On July 31, 2015 Cencosud Internacional Limitada (Chile), was notified by the Chilean taxation office (Servicio de Impuestos Internos – SII) of the official tax liquidations #139 & #140, which determine amendments of the 2013 and 2014 refunds, with a proposed payable amount close to USD $41 million. These official bills were calculated regarding the transference of its owned shares of the Argentinean society Cencosud S.A., to its related society Cencosud Argentina S.P.A (Chile), while this society was created. SII considers that the mentioned shares were undervalued, therefore, there is an assessable capital gain which has to be taxed and paid by Cencosud International Limitada. An appeal has been filled and our legal advisors consider that there is reasonably possible to obtain a favorable ruling.	
 
The contingencies and legal proceedings disclosed above are deemed to be of a possible outcome.

48

 
20                                Stock options
 
As of September 30, 2015 the Company has a share-based compensation plan for executives of Cencosud S,A., and Affiliates, The details of the arrangements are described below:
 
Agreement	Stock options granted to key
executives	
 
Nature of the arrangement	2014 retention plan for executives
 	2015 retention plan for executives
 	2016 retention plan for executives

Date of grant	September 2013
 	September 2014
 	September 2015
 	
Number of instruments granted	22,171,504 shares
 	10,057,500 shares
 	35,424,034 shares
 	
Exercise price	Ch$ 2,600
 	Ch$ 1,646
 	Ch$ 1,000
 	
Share price at granted date	Ch$ 2,071
 	Ch$ 1,785
 	Ch$ 1,336
 	
Vesting	0,9; 1,9; 2,9; 3,9 years
 	1.2; 2.2; 3.1 and  3.4  years
 	0.5; 1.3; and 2.1 years
 	
Condition	a)     As of the grant date, the executive must have a current employment contract with the Company or any of its subsidiaries in Chile or abroad without any interruption in its employment relationship,
 b)    From the date of signing of the stock option contract and until the exercise date, the Executive has not committed any serious breaches of its employment duties, at the Company’s sole discretion,	a)    As of the grant date, the executive must have a current employment contract with the Company or any of its subsidiaries in Chile or abroad without any interruption in its employment relationship, 
b)    From the date of signing of the stock option contract and until the exercise date, the Executive has not committed any serious breaches of its employment duties, at the Company’s sole discretion,	 a)   As of the grant date, the executive must have a current employment contract with the Company or any of its subsidiaries in Chile or abroad without any interruption in its employment relationship,
b)    From the date of signing of the stock option contract and until the exercise date, the Executive has not committed any serious breaches of its employment duties, at the Company’s sole discretion,
        In the case that the Executive does not subscribe the shares within each defined term of the subscription plan, it will be understood that he or she has waived the respective option, and accordingly, any right; power; promise; or offer in connection with this 2016 Plan has been extinguished for all legal purposes, leaving the company free from any liability for such effects.	
 	 	 	 	
Settlement	Cash	Cash	Cash	
Data used in the options pricing model:	 	 	 	
 
Weighted average price of
shares used 
 	Ch$ 2,071
 	 
Ch$ 1,785
 	 
Ch$ 1,336

Exercise price 
 	Ch$ 2,600
 	Ch$ 1,646	Ch$ 1,000	
 
Expected volatility 
 	23,4%
 	27,0%	27,6%

Expected term at grant day (in years)
 	0.9; 1.9; 2.9; 3.9 years
 	 
1.2; 2.2; 3.1 and  3.4  years
 	 
0.5; 1.3 and 2.1 years

Risk free interest rate 
 	5,0%
 	3.3%	4.0%	
 
Expected dividends (dividends yield)
 	1%
 	 
0.9%
 	 
0.87%

Anticipated % of executives leaving the plan (at grant date)
 	10%
 	10%
 	10%

Fair value of the option at the grant date
 	Ch$ 157.49
 	Ch$ 404.37
 	Ch$ 397.03

 
49

 
 	 	Numbers of shares	 	
Stock options granted to key executives	 	9/30/2015	 	 	12/31/2014	 	
1) Outstanding as of the beginning of the period 	 	 	25,191,698	 	 	 	22,010,664	 	
2) Granted during the period 	 	 	35,424,034	 	 	 	10,152,500	 	
3) Forfeited during the period	 	 	(18,239,106	)	 	 	(1,762,368	)	
4) Exercised during the period	 	 	-	 	 	 	-	 	
5) Expired at the end of the period	 	 	(6,444,842	)	 	 	(5,209,098	)	
6) Outstanding at the end of the period	 	 	35,931,784	 	 	 	25,191,698	 	
7) Vested and expected to vest at the end of the period	 	 	35,931,784	 	 	 	25,191,698	 	
8) Eligible for exercise at the end of the period	 	 	413	 	 	 	675	 	

Stock options—Impact in P&L	 	As of September
30, 2015	 	 	As of September
30, 2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Impact in the income statement 	 	 	1,879,792	 	 	 	1,840,503	 	
 
The Board has approved a change to the performance incentive plan, changing the condition of exercise in accordance with the EBITDA increase percentage actually achieved. It was also agreed to postpone the deadline for exercising the stock option plans until April 22, 2013.

Additionally, the Board delegated to its Chairman the possibility of providing additional options to the aforementioned performance incentive plan to certain key executives under the condition that they not exceed the limit of number of shares approved by the Shareholders dated April 25, 2008 for this purposes.

As at September 28 th , 2015 the Company launched the 2016 options plan. All the Executives have accepted this plan, and they have waived in respect to any previous existing plans as at September 28 th , 2015, which have not been exercised by the executive, including those not exercised because the respective terms have been met.

In relation to the 2016 and 2015 Retention Plan, the outstanding options as of September 30, 2015 had a weighted-average contractual life of 1.21 years, 0.98 years and 0.18 years respectively. As of December 31, 2014 those options had a weighted-average contractual life of  1.73 years (2015 plan), and 0.92 (2014 plan) as each one corresponds.

The Company utilizes a valuation model that is based in a constant volatility assumption to value its employee share options. The fair value of each option grant has been estimated, as of the grant date, using the Black Scholes option pricing model.
 
21                                Disposal Group held for sale
 
The Bank of Nova Scotia and Scotiabank Chile, and the Company, together with its affiliates Cencosud Retail S.A. and Easy S.A., entered into an agreement in order to further develop, together, the retail finance business in Chile, as of June 20, 2014. The Agreement provided that the Business shall be operated through (i) Cencosud Administradora de Tarjetas S.A. (“CAT”), a card-issuing company that, upon the closing of the transaction, will be a bank transfer supporting affiliate of Scotiabank Chile, and (ii) Cencosud Administradora de Procesos S.A., Cencosud Servicios Integrales S.A., and Cencosud Corredores de Seguros y Servicios Ltda. or new companies that will be created (together with CAT). Said companies will be affiliates of Scotiabank Chile or The Bank of Nova Scotia.
 
The term for the consummation of the transaction was estimated by the Company to be from 3 to 6 months from the date of entry into the Framework Agreement, with the maximum term to comply with the aforementioned conditions precedent being 12 months. As of April 13, 2015 the Chilean Regulator, Superintendencia de Bancos e Instituciones Financieras, approved the joint venture transaction.
 
According to the above, from September 30, 2014 NIIF 5 Guidelines – “non-current assets maintained for sale and discontinued operations”, has been implemented in our financial reports, revealing all the Chilean Financial Retail operations separately since that date up to we proceed to the loss of control of retail finance companies.
 
On May 1st, 2015 the transaction for which Scotiabank Chile acquired 51% of the division of retail financial services Cencosud SA was completed, in a strategic alliance for 15 years to be materialized. The operation involves the management of the portfolio of credit cards and consumer loans and offer additional products and financial services. The transaction valued at US $ 280 million (M$

50

 
169,909,600), could experience price adjustments as agreed between the parties, it includes a commitment to finance 100% of the loan portfolio of retail financial business.
 
As of September 30, 2015 the Company has recognized a gain of M$ 61,372,533 within the Interim consolidated statement of comprehensive income by function, under the "Other gains and losses" line (see 16.4). The generated profit includes M $ 30,144,477 corresponding to the benefit related to the measurement at fair value of non-controlling interest in subsidiaries held after the sale.
 
a)  	The assets and liabilities of the disposal group at the sale date were as follows:	
 
Assets	 	4/30/2015
Non-audited	 	
 	 	ThCh$	 	
 	 	 	 	
Current assets	 	 	 	
Cash and cash equivalents	 	 	2,763,976	 	
Other financial assets, current	 	 	12,600,000	 	
Other non-financial assets, current	 	 	907,848	 	
Trade receivables and other receivables, current	 	 	306,786,221	 	
Receivables due from related entities, current	 	 	23,800,709	 	
Current tax assets	 	 	577,032	 	
 	 	 	 	 	
Total current assets	 	 	347,435,786	 	
 	 	 	 	 	
Non-current assets	 	 	 	 	
Trade receivables and other receivables, non-current	 	 	34,902,150	 	
Receivables due from related entities, non-current	 	 	14,056,669	 	
Intangible assets other than Goodwill	 	 	2,252,430	 	
Property, plant and equipment	 	 	1,959,049	 	
Non-current tax assets	 	 	484,662	 	
Deferred income tax assets	 	 	13,105,275	 	
 	 	 	 	 	
Total non-current assets	 	 	66,760,235	 	
 	 	 	 	 	
Total assets	 	 	414,196,021	 	

Net equity and liabilities	 	4/30/2015
Non-audited	 	
 	 	ThCh$	 	
Current liabilities	 	 	 	
Other financial liabilities, current	 	 	635,042	 	
Trade payables and other payables, current	 	 	16,147,455	 	
Payables to related entities, current	 	 	10,500,744	 	
Other provisions, current	 	 	2,160,800	 	
Current income tax liabilities	 	 	2,253,928	 	
Current provision for employee benefits	 	 	1,699,954	 	
 	 	 	 	 	
Total current liabilities 	 	 	33,397,924	 	
 	 	 	 	 	
Non-current liabilities	 	 	 	 	
Payables to related entities, non-current	 	 	315,220,271	 	
Deferred income tax liabilities	 	 	521,603	 	
 	 	 	 	 	
Total non-current liabilities	 	 	315,741,874	 	
 	 	 	 	 	
        Total liabilities 	 	 	349,139,798	 	
 	 	 	 	 	
Total net assets	 	 	65,056,223	 	

51

 
b)  	Assets and liabilities of disposal group held for sale	
 
As of December 31, 2015, and September 30, 2015 assets and liabilities held for disposal were as follows:
 
Assets	 	9/30/2015	 	 	12/31/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	
Current assets	 	 	 	 	 	 	
Cash and cash equivalents 	 	 	-	 	 	 	755,493	 	
Other financial assets, current	 	 	-	 	 	 	3,427,594	 	
Other non-financial assets, current	 	 	-	 	 	 	88,360	 	
Trade receivables and other receivables	 	 	-	 	 	 	445,652,518	 	
Current tax assets	 	 	-	 	 	 	356,247	 	
 	 	 	 	 	 	 	 	 	
Total current assets	 	 	-	 	 	 	450,280,212	 	
 	 	 	 	 	 	 	 	 	
Non-current assets	 	 	 	 	 	 	 	 	
Other non-financial assets, non-current	 	 	-	 	 	 	-	 	
Trade receivable and other receivables, non-current	 	 	-	 	 	 	120,815,446	 	
Intangible assets other than Goodwill	 	 	-	 	 	 	207,571,741	 	
Property Plan and Equipment	 	 	-	 	 	 	1,816,591	 	
Non-Current tax assets	 	 	-	 	 	 	484,662	 	
Deferred income tax assets	 	 	-	 	 	 	12,447,924	 	
 	 	 	 	 	 	 	 	 	
Total non-current assets	 	 	-	 	 	 	343,136,364	 	
 	 	 	 	 	 	 	 	 	
Total assets	 	 	-	 	 	 	793,416,576	 	
 
Net equity and liabilities	 	9/30/2015	 	 	12/31/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
 	 	 	 	 	 	 	
Current liabilities	 	 	 	 	 	 	
Other financial liabilities, current 	 	 	-	 	 	 	134,403,119	 	
Trade payables and other payables 	 	 	-	 	 	 	28,054,214	 	
Other provisions, current	 	 	-	 	 	 	2,139,131	 	
Current income tax liabilities 	 	 	-	 	 	 	357,563	 	
Current provision for employee benefits 	 	 	-	 	 	 	2,232,715	 	
Total current liabilities 	 	 	-	 	 	 	167,186,742	 	
 	 	 	 	 	 	 	 	 	
Non-current liabilities	 	 	 	 	 	 	 	 	
Other non-financial liabilities, 	 	 	-	 	 	 	49,183,735	 	
Accounts payables due to related parties 	 	 	-	 	 	 	-	 	
Deferred income tax liabilities 	 	 	-	 	 	 	420,955	 	
 	 	 	 	 	 	 	 	 	
Total non-current liabilities 	 	 	-	 	 	 	49,604,690	 	
 	 	 	 	 	 	 	 	 	
Total liabilities 	 	 	-	 	 	 	216,791,432	 	
 
c)  	Cumulative income or expenses included in OCI.	
 
There is no cumulative income or expenses included in OCIA relating to the disposal Group.

52

22                                Discontinued operation
 
As presented in note 21, the Group presents the results of the discontinued operations as of September, 30 2015 and 2014, regarding the disposal of part of the financial retail business segment in Chile.

a)  	Results of discontinued operation	

For the nine months ended September 30	 	2015	 	 	2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities	 	 	60,759,616	 	 	 	155,173,273	 	
Cost of sales	 	 	(20,400,024	)	 	 	(42,022,177	)	
 	 	 	 	 	 	 	 	 	
Gross Margin	 	 	40,359,592	 	 	 	113,151,096	 	
 	 	 	 	 	 	 	 	 	
Other revenues by function	 	 	436,450	 	 	 	198,189	 	
Sales, general and administrative expenses	 	 	(12,971,018	)	 	 	(41,563,950	)	
Other expenses by function	 	 	(4,400,196	)	 	 	(9,958,300	)	
Other gain (loss)	 	 	3,741	 	 	 	19,607	 	
 	 	 	 	 	 	 	 	 	
Results from operating activities	 	 	23,428,569	 	 	 	61,846,642	 	
 	 	 	 	 	 	 	 	 	
Finance income	 	 	131,448	 	 	 	259,620	 	
Finance expenses	 	 	(14,354,550	)	 	 	(29,512,504	)	
Exchange differences	 	 	2,760,915	 	 	 	(15,653,220	)	
(Losses) from indexation	 	 	(38,046	)	 	 	(3,652,430	)	
 	 	 	 	 	 	 	 	 	
Results from operating activities before income tax	 	 	11,928,336	 	 	 	13,288,108	 	
Income Tax	 	 	(2,683,876	)	 	 	(2,657,622	)	
 	 	 	 	 	 	 	 	 	
Profit (loss) for the period	 	 	9,244,460	 	 	 	10,630,486	 	
Basic earnings (loss) per share	 	 	5.3	 	 	 	11.2	 	
Diluted earnings (loss) per share	 	 	5.3	 	 	 	11.2	 	
 
b)  	Cash flows from (used in) discontinued operations	
 
In thousands of Chilean pesos	 	9/30/2015	 	 	9/30/2014	 	
 	 	ThCh$	 	 	ThCh$	 	
Net cash from (used in) operating activities	 	 	(107,449,303	)	 	 	(10,136,575	)	
Net cash from (used in) investing activities	 	 	(750,271	)	 	 	76,229,178	 	
Net cash from (used in) financing activities	 	 	35,258,696	 	 	 	(66,092,603	)	
 
23	Changes in accounting policies	
 
From 2015 financial year, the Company has decided to change the accounting policy related to recognition of the impacts on the measurement of the market value (Mark to Market -MTM) of financial instruments and derivative contracts, which together meet criteria for applying hedge accounting. Likewise, this change in accounting policy is adopted for derivative instruments classified as speculative, in the case that these have not been designated as hedges.

53

23.1	Reasons of the change in the accounting policy	

The decision of voluntary change in accounting policy has been adopted in order to reflect more reliable and consistent impact of financial transactions and financial derivative contracts. Previously, the ineffective portion of designated hedges, while market value measurement was practiced (Mark to Market - MTM) over financial instruments and derivative contracts were recognized under the operational category of "other gains and losses". The "other gains and losses" line is an operational category which was including related components with a financial nature and origin. By the adopted change, these effects will be presented under non-operating items of "exchange difference" and "interest expense" depending on the nature of the hedged item.
 
By applying this change, the effects are recognized separately and according to the hedged risk (difference of exchange or interest expense), thus preventing these impacts are mixed with various other operational transactions are presented in the caption "Other gains (losses )".
 
23.2	Nature of the change in the accounting policy	
 
23.2.1                    Recognition in applying the current accounting policy for hedge accounting by type of risk, used to be applied as follows:

a)  	Foreign Exchange Currency risk: Classified as cash flow hedge, the effective portions of the changes in the fair value of derivatives that have been designated and qualify as cash flows hedges are recorded initially in net equity through other comprehensive income. Subsequently, the related accumulated amounts in OCI are recycled from equity to the statement of income as the hedge item affects the income statement, both in the same line item “Exchange differences”. The gain or loss related to the ineffective portion is recorded immediately in the statement of income as “other gains (losses)”.	

b)  	Interest rate risk : The hedge is classified depending on the interest rate contract:	

·  	Derivative financial instrument contracts agreed under a fixed rate interest: Classified as cash flows hedges, the effective portions of the changes in the fair value of derivatives that have been designated and qualify as cash flows hedges are recorded initially in net equity through other comprehensive income. Subsequently, the related accumulated amounts in OCI are recycled from equity to the statement of income as the hedge item affects the income statement, both in the same line item “Finance Expenses”. The gain or loss related to the ineffective portion is recorded immediately in the statement of income as “other gains (losses)”.	

·   	Derivative financial instrument contracts agreed under a variable interest rate: Classified as fair value hedges, changes in the fair value are recorded in the statement of income, together with gains and losses on the hedging instrument. The gain or loss related to the effective portion of the hedging instrument and hedged item is recognized in the statement of gains and losses as “financial expenses.” The ineffective portion of hedging instrument is recognized within the income statement in the line item “Other gains (losses)”.	

Additionally, gains and losses arising from financial derivative instruments that do not meet effectiveness criteria, non-hedging derivatives, are recognized in the line item “ Other gains (losses)”, considering the limited guidance provided by IAS 39 regarding the classification of the hedging effects in the statement of income.
 
23.2.2                                Voluntary change in accounting policy adopted since current financial year

Company’s Management has decided to reassess its accounting policy regarding the classification in the income statement of the gains and losses related to the ineffective portion of the hedges. Consequently, given the nature and purpose of the derivative financial instruments designated as hedges (economical and those complying with IAS 39 guidance), as well as the nature of hedged items and the activities for which such financial instruments were contracted, the Company has concluded that the ineffective portion of the effects of measurement at fair value such derivative financial instruments should be recognized in the same line item of the income statement that those accounting effects of the related hedge items. Furthermore, the Company believes that the new classification of gains and losses derived from the ineffective portion of hedging derivatives and non-hedging derivatives will improve the financial information for its users as these will not affect operating profit and will provide more relevant and reliable information. The voluntary change in this accounting policy will be applied retrospectively for the whole periods that need to be revealed comparatively.

Accordingly, changes in the fair value of derivatives financial instruments arising from the ineffective portion of hedging interest rate risk should be recognized in the line item "finance expense" in accordance with the new accounting policy, and those effects arising

54

 
from the change in fair value related to the ineffective portion of hedging the exchange rate risk are recognized in the line item "exchange differences".
 
Consistently with the above mentioned, changes in the fair value of non-hedging derivative financial instruments should also be recognized by its nature (derivative financial instruments hedging the exchange rate risk in the line item "foreign exchange" and derivative financial instruments hedging the interest rate risk in the line item "finance expenses").
 
Except for the change in the accounting policy formerly mentioned, no other changes in accounting policies have been applied by the Company during 2015.
 
23.3	Impacts of the change in the accounting policy	
 
In detail, the change in accounting policy is shown as follows:
 
Effects of the Change	 	 
For the nine months ended 9/30/2015	 	 	For the nine months ended 9/30/2014	 	
 	 	Before
 Change	 	 	Change
 effects	 	 	After
change	 	 	Before
 Change	 	 	Change
 effects	 	 	After
change	 	
 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Other gains (losses) 	 	 	(70,242,745	)	 	 	8,529,797	 	 	 	(61,712,948	)	 	 	24,170,155	 	 	 	(29,037,076	)	 	 	(4,866,921	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating profits	 	 	275,201,923	 	 	 	8,529,797	 	 	 	283,731,720	 	 	 	310,216,519	 	 	 	(29,037,076	)	 	 	281,179,443	 	
Finance expenses 	 	 	(175,369,010	)	 	 	(5,384,277	)	 	 	(180,753,287	)	 	 	(158,848,704	)	 	 	29,037,076	 	 	 	(129,811,628	)	
Exchange differences	 	 	(103,997,347	)	 	 	(3,145,520	)	 	 	(107,142,867	)	 	 	(20,753,742	)	 	 	-	 	 	 	(20,753,742	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit before tax	 	 	1,345,726	 	 	 	-	 	 	 	1,345,726	 	 	 	112,695,903	 	 	 	-	 	 	 	112,695,903	 	
Profit from continuing operations	 	 	35,205,233	 	 	 	-	 	 	 	35,205,233	 	 	 	79,118,281	 	 	 	-	 	 	 	79,118,281	 	
Profit from discontinued operations	 	 	9,244,460	 	 	 	-	 	 	 	9,244,460	 	 	 	10,630,486	 	 	 	-	 	 	 	10,630,486	 	
Profit	 	 	44,449,693	 	 	 	-	 	 	 	44,449,693	 	 	 	89,748,767	 	 	 	-	 	 	 	89,748,767	 	
 
24	Subsequent events	
 
On November 3rd, 2015, the Board of Directors agreed on distributing an interim provisory dividend of Ch$16 per share in relation to the 2015 profits. This dividend will be placed to shareholders order as from December 4th 2015.
 
On November 4th, 2015 Cencosud Colombia SA has materialized the sale of 39 pharmacies operated in Colombia to the Mexican holding FEMSA. The transaction involves the transfer of the pharmacies chain operation, the sale of operative fixed assets and the cession of some lease contracts. This arrangement will not generate significant impacts on the consolidated financial statements.
 
Between the date of issuance of these condensed consolidated financial statements and the filing date of this report, management is not aware of any other subsequent events that could significantly affect the consolidated financial statements.

 

 
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