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 August, 2012
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   ¨
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):   ¨
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):   ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes   ¨              No   x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2012
This report on Form 6-K is being furnished for the purpose of providing a copy of the registrant’s unaudited condensed consolidated financial statements as of and for the three months ended June 30, 2012 (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 the attachment.
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 relate to, 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 rubric “Risk Factors” as well as risks included in the Company’s other filings and submissions with the United States Securities and Exchange Commission.
These forward-looking statements involve various risks and uncertainties. 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
 
2

these forward-looking statements due to, inclusive, 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.
 
3

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/ Juan Manuel Parada	
	 	Name:	 	Juan Manuel Parada	
	 	Title:	 	Chief Financial Officer	
Date: August 31, 2012

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

Assets	  	Note	 	  	As of
June 30, 2012	 	  	As of
Dec 31, 2011	 	
 	  	 	 	  	ThCh$	 	  	ThCh$	 	
Current assets	  				  				  				
Cash and cash equivalents	  				  	 	104,708,222	  	  	 	145,315,474	  	
Other financial assets, current	  	 	5	  	  	 	55,028,707	  	  	 	221,929,204	  	
Other non-financial assets, current	  				  	 	11,363,684	  	  	 	12,258,841	  	
Trade receivables and other receivables	  	 	6	  	  	 	883,591,712	  	  	 	930,380,707	  	
Receivables from related entities, current	  				  	 	470,837	  	  	 	82,334	  	
Inventory	  	 	8	  	  	 	825,606,454	  	  	 	769,472,451	  	
Current tax assets	  				  	 	15,690,842	  	  	 	6,962,369	  	
	  				  	 	 	 	  	 	 	 	
Total current assets	  				  	 	1,896,460,458	  	  	 	2,086,401,380	  	

Non-current assets	  				  				  				
Other financial assets, non-current	  	 	5	  	  	 	37,194,097	  	  	 	46,979,614	  	
Other non-financial assets, non-current	  				  	 	34,862,595	  	  	 	35,051,959	  	
Trade receivable and other receivables, non-current	  	 	6	  	  	 	152,461,590	  	  	 	194,443,515	  	
Equity method investment	  				  	 	39,666,581	  	  	 	38,830,440	  	
Intangible assets other than goodwill	  	 	9	  	  	 	538,345,984	  	  	 	526,758,175	  	
Goodwill	  	 	9	  	  	 	1,111,140,394	  	  	 	1,001,778,510	  	
Property, plant and equipment	  	 	10	  	  	 	2,345,400,053	  	  	 	2,260,289,190	  	
Income tax assets-current	  				  	 	9,359,417	  	  	 	—  	  	
Investment property	  	 	11	  	  	 	1,398,312,048	  	  	 	1,310,143,075	  	
Deferred income tax assets	  				  	 	170,482,287	  	  	 	154,163,285	  	
	  				  	 	 	 	  	 	 	 	
Total non-current assets	  				  	 	5,837,225,046	  	  	 	5,568,437,763	  	

Total assets	  				  	 	7,733,685,504	  	  	 	7,654,839,143	  	
	  				  	 	 	 	  	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-1

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

Net equity and liabilities	  	Note	 	  	As of
June 30, 2012	 	 	As of
Dec 31, 2011	 	
 	  	 	 	  	ThCh$	 	 	ThCh$	 	
Current liabilities	  				  				 				
Other financial liabilities, current	  	 	12	  	  	 	836,027,901	  	 	 	578,822,842	  	
Trade payables and other payables	  				  	 	1,391,660,410	  	 	 	1,550,820,719	  	
Payables to related entities, current	  				  	 	943,267	  	 	 	1,447,631	  	
Provisions and other liabilities	  	 	13	  	  	 	23,232,372	  	 	 	16,063,051	  	
Current income tax liabilities	  				  	 	26,839,227	  	 	 	40,490,319	  	
Current provision for employee benefits	  				  	 	68,655,047	  	 	 	68,649,874	  	
Other non-financial liabilities, current	  				  	 	38,421,187	  	 	 	71,050,305	  	
	  				  	 	 	 	 	 	 	 	
Total current liabilities	  				  	 	2,385,779,411	  	 	 	2,327,344,741	  	

Non-current liabilities	  				  				 				
Other financial liabilities,	  	 	12	  	  	 	1,875,093,770	  	 	 	1,872,951,008	  	
Trade accounts payables	  	 	13	  	  	 	9,736,320	  	 	 	11,150,691	  	
Provisions and other liabilities	  	 	13	  	  	 	81,892,837	  	 	 	83,151,018	  	
Deferred income tax liabilities	  				  	 	324,167,155	  	 	 	313,536,102	  	
Other non-financial liabilities, non-current	  				  	 	76,693,657	  	 	 	82,721,789	  	
	  				  	 	 	 	 	 	 	 	
Total non-current liabilities	  				  	 	2,367,583,739	  	 	 	2,363,510,608	  	
	  				  	 	 	 	 	 	 	 	
Total liabilities	  				  	 	4,753,363,150	  	 	 	4,690,855,349	  	

Net equity	  				  				 				
Paid-in capital	  	 	14	  	  	 	1,256,017,686	  	 	 	927,804,431	  	
Retained earnings	  				  	 	1,740,759,330	  	 	 	1,672,015,244	  	
Issuance premium	  				  	 	380,153,755	  	 	 	477,341,095	  	
Other reserves	  				  	 	(397,490,386	) 	 	 	(202,722,478	) 	
	  				  	 	 	 	 	 	 	 	
Equity attributable to controlling shareholders	  				  	 	2,979,440,385	  	 	 	2,876,232,581	  	
	  				  	 	 	 	 	 	 	 	
Non-controlling interest	  				  	 	881,969	  	 	 	87,751,213	  	
	  				  	 	 	 	 	 	 	 	
Total net equity	  				  	 	2,980,322,354	  	 	 	2,963,983,794	  	
	  				  	 	 	 	 	 	 	 	
Total net equity and liabilities	  				  	 	7,733,685,504	  	 	 	7,654,839,143	  	
	  				  	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-2

Cencosud S.A. and subsidiaries
Unaudited condensed interim consolidated statements of income by function

 	  	 	 	  	For the six month period ended June 30,	 	
Statement of income	  	Note	 	  	2012	 	 	2011	 	
 	  	 	 	  	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities	  	 	16	  	  	 	4,366,693,425	  	 	 	3,545,847,992	  	
Cost of sales	  	 	15	  	  	 	(3,139,475,073	) 	 	 	(2,520,167,339	) 	
	  				  	 	 	 	 	 	 	 	
Gross margin	  				  	 	1,227,218,352	  	 	 	1,025,680,653	  	
	  				  	 	 	 	 	 	 	 	
Other income by function	  	 	15	  	  	 	41,921,343	  	 	 	24,039,380	  	
Distribution cost	  	 	15	  	  	 	(9,562,131	) 	 	 	(6,790,090	) 	
Administrative expenses	  	 	15	  	  	 	(925,226,314	) 	 	 	(708,224,430	) 	
Other expenses by function	  	 	15	  	  	 	(75,789,479	) 	 	 	(66,302,680	) 	
Other (losses) gain, net	  	 	15	  	  	 	(8,511,327	) 	 	 	(2,657,862	) 	
	  				  	 	 	 	 	 	 	 	
Operating results	  				  	 	250,050,444	  	 	 	265,744,971	  	

Financial income	  	 	15	  	  	 	4,688,276	  	 	 	5,913,419	  	
Financial expenses	  	 	15	  	  	 	(98,013,870	) 	 	 	(69,283,444	) 	
Losses from indexation	  	 	15	  	  	 	(14,028,631	) 	 	 	(16,776,767	) 	
Exchange differences	  	 	15	  	  	 	(2,606,767	) 	 	 	(1,957,139	) 	
Participation in profit or loss of equity method associates	  				  	 	2,239,958	  	 	 	1,689,329	  	
	  				  	 	 	 	 	 	 	 	
Profit before tax	  				  	 	142,329,610	  	 	 	185,330,369	  	
Income tax	  				  	 	(48,751,871	) 	 	 	(52,098,320	) 	
	  				  	 	 	 	 	 	 	 	
Profit from ongoing operations	  				  	 	93,577,739	  	 	 	133,232,049	  	
	  				  	 	 	 	 	 	 	 	
Profit attributable to controlling shareholders	  				  	 	90,582,387	  	 	 	127,324,704	  	
Profit attributable to non-controlling shareholders	  				  	 	2,995,352	  	 	 	5,907,345	  	
	  				  	 	 	 	 	 	 	 	
Net income	  				  	 	93,577,739	  	 	 	133,232,049	  	

Earnings per share	  				  				 				
Basic earnings per share	  				  	 	38.4	  	 	 	56.2	  	
Diluted earnings per share	  				  	 	38.1	  	 	 	55.7	  	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-3

Cencosud S.A. and subsidiaries
Unaudited condensed interim consolidated statements of comprehensive income by function

 	  	For the six month period
ended June 30,	 	
 	  	2012	 	 	2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Net income	  	 	93,577,739	  	 	 	133,232,049	  	
Other comprehensive income and expenses debited or credited in equity	  				 				
Foreign currency translation adjustments	  	 	(132,817,229	) 	 	 	26,298,330	  	
Cash flow hedge	  	 	4,417,512	  	 	 	(1,485,863	) 	
Income tax related to cash flow hedge presented in other comprehensive income	  	 	(750,977	) 	 	 	252,597	  	
	  	 	 	 	 	 	 	 	
Total other comprehensive income (loss)	  	 	(129,150,694	) 	 	 	24,812,467	  	
	  	 	 	 	 	 	 	 	
Total comprehensive income (loss)	  	 	(35,572,955	) 	 	 	158,297,113	  	
	  	 	 	 	 	 	 	 	
Comprehensive income and expense attributable to controlling shareholders	  	 	(38,568,307	) 	 	 	154,941,847	  	
Non-controlling shareholders	  	 	2,995,352	  	 	 	3,355,266	  	
	  	 	 	 	 	 	 	 	
Total comprehensive income (loss)	  	 	(35,572,955	) 	 	 	158,297,113	  	
	  	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-4

Cencosud S.A. and subsidiaries
Unaudited condensed interim consolidated statements of changes in equity
For the six-months period ended June 30, 2012

 	  	Paid-in
capital	 	  	Issuance
premiums	 	 	Translation
reserves	 	 	Hedge
reserves	 	  	Other
reserves	 	 	Total other
reserves	 	 	Changes in
retained earnings	 	 	Changes in
equity
attributable to
parent company
shareholders	 	 	Change in
non-controlling
interest	 	 	Change in
net equity
total	 	
Opening balance as of
January 1, 2012	  	 	927,804,431	  	  	 	477,341,095	  	 	 	(233,050,928	) 	 	 	9,825,606	  	  	 	20,502,844	  	 	 	(202,722,478	) 	 	 	1,673,809,533	  	 	 	2,876,232,581	  	 	 	87,751,213	  	 	 	2,963,983,794	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beginning balance	  	 	927,804,431	  	  	 	477,341,095	  	 	 	(233,050,928	) 	 	 	9,825,606	  	  	 	20,502,844	  	 	 	(202,722,478	) 	 	 	1,673,809,533	  	 	 	2,876,232,581	  	 	 	87,751,213	  	 	 	2,963,983,794	  	
Change in equity	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Comprehensive results	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Earning (loss)	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	90,582,387	  	 	 	90,582,387	  	 	 	2,995,352	  	 	 	93,577,739	  	
Other comprehensive results	  	 	—  	  	  	 	—  	  	 	 	(132,817,229	) 	 	 	3,666,535	  	  				 	 	(129,150,694	) 	 	 	—  	  	 	 	(129,150,694	) 	 	 	—  	  	 	 	(129,150,694	) 	
	  				  				 				 				  				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive results	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(38,568,307	) 	 	 	2,995,352	  	 	 	(35,572,955	) 	
Share issuance	  	 	328,213,255	  	  	 	(97,187,340	) 	 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	231,025,915	  	 	 	—  	  	 	 	231,025,915	  	
Dividends	  				  				 	 	—  	  	 	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	(22,553,716	) 	 	 	(22,553,716	) 	 	 	—  	  	 	 	(22,553,716	) 	
Option (call-put)	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	92,991,292	  	 	 	92,991,292	  	 	 	(1,078,874	) 	 	 	91,912,418	  	 	 	—  	  	 	 	91,912,418	  	
Stock option	  				  				 				 				  	 	1,148,782	  	 	 	1,148,782	  	 	 	—  	  	 	 	1,148,782	  	 	 	—  	  	 	 	1,148,782	  	
Other increase/decrease	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	1,216,712	  	 	 	1,216,712	  	 	 	—  	  	 	 	1,216,712	  	 	 	—  	  	 	 	1,216,712	  	
Increase (decrease) due to
changes in ownership
interest without a loss
of control	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	(160,974,000	) 	 	 	(160,974,000	) 	 	 	—  	  	 	 	(160,974,000	) 	 	 	(89,864,596	) 	 	 	(250,838,596	) 	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total change in equity	  	 	328,213,255	  	  	 	(97,187,340	) 	 	 	(132,817,229	) 	 	 	3,666,535	  	  	 	(65,617,214	) 	 	 	(194,767,908	) 	 	 	66,949,797	  	 	 	103,207,804	  	 	 	(86,869,244	) 	 	 	16,338,560	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending balance, as of
June 30, 2012	  	 	1,256,017,686	  	  	 	380,153,755	  	 	 	(365,868,157	) 	 	 	13,492,141	  	  	 	(45,114,370	) 	 	 	(397,490,386	) 	 	 	1,740,759,330	  	 	 	2,979,440,385	  	 	 	881,969	  	 	 	2,980,322,354	  	
	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-5

Cencosud S.A. and subsidiaries
Unaudited condensed interim consolidated statements of changes in equity
For the six-months period ended June 30, 2011

 	  	Paid-in
capital	 	  	Issuance
premiums	 	  	Translation
reserves	 	 	Hedge
reserves	 	 	Other
reserves	 	 	Total other
reserves	 	 	Changes in
retained earnings	 	 	Changes in
equity
attributable to
parent company
shareholders	 	 	Change in
non-
controlling
interest	 	 	Change in
net equity
total	 	
Opening balance as of
January 1, 2011	  	 	927,804,431	  	  	 	477,341,095	  	  	 	(310,945,441	) 	 	 	5,004,529	  	 	 	56,225,241	  	 	 	(249,715,671	) 	 	 	1,459,277,564	  	 	 	2,614,707,419	  	 	 	74,885,760	  	 	 	2,689,593,179	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beginning balance	  	 	927,804,431	  	  	 	477,341,095	  	  	 	(310,945,441	) 	 	 	5,004,529	  	 	 	56,225,241	  	 	 	(249,715,671	) 	 	 	1,459,277,564	  	 	 	2,614,707,419	  	 	 	74,885,760	  	 	 	2,689,593,179	  	
Change in equity	  				  				  				 				 				 				 				 				 	 	—  	  	 				
Comprehensive results	  				  				  				 				 				 				 				 				 	 	—  	  	 				
Earning	  	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	127,324,704	  	 	 	127,324,704	  	 	 	5,907,345	  	 	 	133,232,049	  	
Other comprehensive results	  	 	—  	  	  	 	—  	  	  	 	28,850,409	  	 	 	(1,233,266	) 	 				 	 	27,617,143	  	 	 	—  	  	 	 	27,617,143	  	 	 	(2,552,079	) 	 	 	25,065,064	  	
	  				  				  				 				 				 				 				 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive results	  	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	154,941,847	  	 	 	3,355,266	  	 	 	158,297,113	  	
Dividends	  	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	 				 				 	 	(37,192,512	) 	 	 	(37,192,512	) 	 	 	—  	  	 	 	(37,192,512	) 	
Option (call-put)	  				  				  				 				 	 	(32,042,312	) 	 	 	(32,042,312	) 	 				 	 	(32,042,312	) 	 				 	 	(32,042,312	) 	
Stock option	  	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	1,148,782	  	 	 	1,148,782	  	 	 	—  	  	 	 	1,148,782	  	 				 	 	1,148,782	  	
Other increase to net equity	  	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	1,078,515	  	 	 	1,078,515	  	 	 	—  	  	 	 	1,078,515	  	 	 	—  	  	 	 	1,078,515	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total change in equity	  	 	—  	  	  	 	—  	  	  	 	28,850,409	  	 	 	(1,233,266	) 	 	 	(29,815,015	) 	 	 	(2,197,872	) 	 	 	90,132,192	  	 	 	87,934,320	  	 	 	3,355,266	  	 	 	91,289,586	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ending balance, as of
June 30, 2011	  	 	927,804,431	  	  	 	477,341,095	  	  	 	(282,095,032	) 	 	 	3,771,263	  	 	 	26,410,226	  	 	 	(251,913,543	) 	 	 	1,549,409,756	  	 	 	2,702,641,739	  	 	 	78,241,026	  	 	 	2,780,882,765	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-6

Cencosud S.A. and subsidiaries
Unaudited condensed interim consolidated statements of cash flows

 	  	For the six month period ended June 30,	 	
 	  	2012	 	 	2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Cash flows from (used in) operating activities	  				 				
Types of revenues from operating activities	  				 				
Revenue from sale of goods & provision of services	  	 	5,271,734,041	  	 	 	4,299,125,208	 	
Proceeds from royalties, installments, commissions and other ordinary activities	  	 	506,077	  	 	 	3,743,907	  	
Other operating activity revenue	  	 	7,219,120	  	 	 	6,175,987	  	
			
Types of payments	  				 				
Payments to suppliers for supply of goods & services	  	 	(4,280,761,716	) 	 	 	(3,574,264,015	) 	
Payments to and on behalf of personnel	  	 	(552,261,031	) 	 	 	(419,284,889	) 	
Other operating payments	  	 	(265,513,366	) 	 	 	(224,851,303	) 	
Interest paid	  	 	(1,242,079	) 	 	 	(334,150	) 	
Interest received	  	 	971,873	  	 	 	385,563	  	
Taxes paid	  	 	(48,855,445	) 	 	 	(25,315,530	) 	
Other cash inflows	  	 	12,202,745	  	 	 	(607,255	) 	
	  	 	 	 	 	 	 	 	
Net cash flow from (used in) operating activities	  	 	144,000,219	  	 	 	64,773,523	  	

Cash flows from (used in) investment activities	  				 				
Purchase of participation in subsidiaries	  	 	(362,082,746	) 	 	 	—  	  	
Proceeds from sales of property, plant & equipment	  	 	14,237,766	  	 	 	423,723	  	
Purchases of property, plant & equipment	  	 	(321,553,047	) 	 	 	(235,294,041	) 	
Purchases of intangible assets	  	 	(6,024,954	) 	 	 	(1,067,630	) 	
Dividends received	  	 	905,553	  	 	 	655,229	  	
Interest received	  	 	1,078,962	  	 	 	1,665,143	  	
Other Cash Flows (outflows) inflows	  	 	(5,578,286	) 	 	 	42,437,002	  	
	  	 	 	 	 	 	 	 	
Net cash flow used in investment activities	  	 	(679,016,752	) 	 	 	(191,180,574	) 	

Cash flows from (used in) financing activities	  				 				
Proceeds from Share Issuance	  	 	240,005,943	  	 	 	—  	  	
Proceeds from borrowing at long-term	  	 	1,188,530,539	  	 	 	731,559,299	  	
Proceeds from borrowing at short-term	  	 	502,818,482	  	 	 	180,595,956	  	
	  	 	 	 	 	 	 	 	
Total loan proceeds from borrowing	  	 	1,931,354,964	  	 	 	912,155,255	  	
Repayments of borrowing	  	 	(1,303,975,764	) 	 	 	(733,014,285	) 	
Dividends paid	  	 	(53,259,383	) 	 	 	(55,713,543	) 	
Interest paid	  	 	(78,371,135	) 	 	 	(54,515,394	) 	
Other cash outflows	  	 	—  	  	 	 	897,358	  	
	  	 	 	 	 	 	 	 	
Net cash flow from financing activities	  	 	495,748,682	  	 	 	69,809,391	  	
	  	 	 	 	 	 	 	 	
Net decrease in cash and cash equivalents before the effect of variations	  	 	(39,267,851	) 	 	 	(56,597,660	) 	
Effects of variations in the exchange rate on cash and cash equivalents	  	 	(1,339,401	) 	 	 	2,450,962	  	
	  	 	 	 	 	 	 	 	
Net decrease in cash and cash equivalents	  	 	(40,607,252	) 	 	 	(54,146,698	) 	
Cash and cash equivalents at the beginning of the year	  	 	145,315,474	  	 	 	108,122,284	  	
	  	 	 	 	 	 	 	 	
Cash and cash equivalents at the end of the period	  	 	104,708,222	  	 	 	53,975,586	  	
	  	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
 
F-7

Cencosud S.A. and subsidiaries
Notes to the unaudited interim condensed consolidated financial statements
Note 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. The Company holds registry number 743 in the Securities Registrance of the Superintendence of Securities and Insurance and its shares are traded in the Santiago Stock Exchange, the Valparaiso Stock Exchange and the Electronic Stock Exchange of Chile.
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$ 4,366,693,425 for the period of six months ended June 30, 2012.
The Company’s operations include supermarkets, hypermarkets, home improvement stores, department stores, shopping centers, as well as real estate development and financial services. The Company serves to the retail consumption needs of over 180 million customers.
Additionally, the Company operates other lines of business that complement its 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.
This condensed consolidated interim financial information was approved for issue on August 31, 2012.
This condensed consolidated interim financial information is unaudited.
The Cencosud Group is controlled by the Paulmann family (62.4312% ownership interest).
Note 2—Summary of the main accounting policies
2.1 Basis of preparation
This condensed consolidated interim financial information for the six months ended June 30, 2012 and 2011 has been prepared in accordance with IAS 34, “Interim financial reporting.” The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December, 2011, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
Regarding the bussines combination with Johnson´s, as of June 30, 2012 the company is still in the measurement period, so has retrospectively adjusted the provisional amounts recognized at the acquisition date to December 31, 2012. (See Note 9).
2.2 New and amended standards and interpretations
There are no IFRS or IFRIC interpretations that are effective for the first time for the financial year beginning on or after January 1, 2012, that would have a material impact on the group.
The new standards, interpretations and amendments that have been issued but are not in force for the 2012 period and for which early adoption has not been exercised, will not have material impact on the financial statements of the Company.
2.3 Accounting policies
The accounting policies adopted are consistent with those of the previous financial year, except as described below.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual income before tax.
Note 3—Risk management policies
The Company’s activities expose it to a variety of financial risks: market risk (including interest rate risk and foreign exchange rate risk), credit risk and liquidity risk.
 
F-8

The unaudited 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 financial statements as of December 31, 2011.
On June 29, 2012, in connection with the purchase by the Company of the remaining 38.6062% interest in Jumbo Retail Argentina S.A. from UBS A.G. London Branch, Cencosud S.A. and UBS A.G. London Branch agreed to terminate the purchase option (call) and put option (put) and associated rights and obligations between the parties. The accounting effects of this decision are recognized in equity under “other reserves.”
There have been no changes in the risk management policies and procedures since year end.
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 June 30, 2012 and December 31, 2011 have been measured using the methodologies set forth in IAS 39. Taking into account the nature and characteristics of the instruments maintained in its portfolio, the Company classifies its valuation methodologies in the three following levels:
Level I: Quoted values or prices in active markets for directly observable and identical assets and liabilities.
Level II: Inputs from valuation sources other than those derived from quoted values from Level I, but observable in the market for assets and liabilities, either directly (prices) or indirectly (obtained from prices).
Level III: Inputs for assets or liabilities that are not based on observable market data.
Currently, the valuation process involves internally developed valuation techniques, for which parameters and observable market inputs are used, mainly using the present value methodology.
 
F-9

The table below presents the percentage of financial instruments, classified under each level, compared to their total value.
As of June 30, 2012

 	  	 	  	 	  	 	 	  	Classification level	 	  	Amortized
cost	 	
Classification	  	Group	  	Type	  	Note	 	  	Value	 	  	Level I	 	  	Level II	 	  	Level III	 	  			
	  		  		  				  	ThCh$	 	  	  	 	%	  	  	 	%	  	  	 	%	  	  	 	%	  	
At fair value through profit and loss	  	Mutual funds derivatives	  	Mutual fund shares	  	 	5	  	  	 	47,535,589	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  				
	  		  	Derivatives at fair in results Forwards	  	 	5	  	  				  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  		  	Call option (call)	  	 	5	  	  				  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  	Other financial instrument	  	Shares	  	 	5	  	  	 	38,083	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  		  	Highly liquid financial instruments	  	 	5	  	  	 	7,455,035	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
									
At maturity	  		  		  				  				  				  				  				  				
									
Credit cards and trade receivables, net	  	Cash and cash equivalents	  	Cash balances	  				  	 	37,320,448	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Bank balances	  				  	 	61,530,773	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Short-term deposits	  				  	 	5,857,001	  	  				  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Receivables	  	Credit card and trade receivables, net	  	 	6	  	  	 	1,036,053,302	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Receivables from related entities	  	Receivables from related entities, current	  				  	 	470,837	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Tax assets	  	Tax assets, current	  				  	 	15,690,842	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
									
Available-for-sale	  		  		  				  				  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
									
Financial liabilities and payables	  	Bank loans	  	Current	  	 	12	  	  	 	666,692,985	  	  				  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	12	  	  	 	553,401,275	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Bonds payable	  	Current	  	 	12	  	  	 	18,330,658	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	12	  	  	 	1,125,547,339	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other loans (lease)	  	Current	  	 	12	  	  	 	5,405,927	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	12	  	  	 	22,573,726	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Deposits and savings Accounts	  	Current	  	 	12	  	  	 	119,778,467	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	12	  	  	 	50,652,252	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Debt purchase Bretas-Prezunic	  	Current	  	 	12	  	  	 	20,516,563	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	12	  	  	 	108,070,199	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Letters of credit	  	Current	  	 	12	  	  	 	10,509,317	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Trade payables	  	Current	  	 	13	  	  	 	1,255,493,205	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-current	  	 	13	  	  	 	9,736,320	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Withholding taxes	  	Current	  	 	13	  	  	 	135,799,163	  	  	 
 	—  
—  	  
  	  	 
 	—  
—  	  
  	  	 
 	—  
—  	  
  	  	 
 	100
100	  
  	
	  	Lease liabilities	  	Current	  	 	13	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other payables	  	Current	  	 	13	  	  	 	368,042	  	  				  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Payables to related entities	  	Current	  				  	 	943,267	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Tax liabilities	  	Current	  				  	 	26,839,227	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other financial liabilities	  	Cross currency swaps	  	 	12	  	  	 	4,101,960	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  		  	Put options	  	 	12	  	  				  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  		  		  				  				  				  				  	 	—  	  	  				
									
Hedges	  	Hedging derivatives	  	Cash flow hedging liabilities	  	 	12	  	  	 	5,184,393	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Fair value hedging liabilities	  	 	12	  	  	 	356,610	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Cash flow hedging assets	  	 	5	  	  	 	24,458,611	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Fair values hedging assets	  	 	5	  	  	 	12,735,486	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
 
*	Net present value of the redeemable amount	
 
F-10

As of December 31, 2011

 	  	 	  	 	  	 	 	  	Classification level	 	  	Amortized
Cost	 	
Classification	  	Group	  	Type	  	Note	 	  	Value	 	  	Level I	 	  	Level II	 	  	Level III	 	  			
	  		  		  				  	 	ThCh$	  	  	 	%	  	  	 	%	  	  	 	%	  	  	 	%	  	
At fair value through Profit and loss	  	Mutual funds	  	Mutual fund shares	  	 	5	  	  	 	43,067,809	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  	Derivatives	  	Derivatives at fair value with changes in results	  	 	5	  	  	 	2,060,000	  	  				  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Call option (call)	  	 	5	  	  	 	171,402,489	  	  				  				  	 	100	  	  	 	—  	  	
	  	Other financial	  	Shares	  	 	5	  	  	 	36,891	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
	  	Instrument	  	Highly liquid financial instruments	  	 	5	  	  	 	5,362,015	  	  	 	100	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
At maturity Credit cards and trade Receivables, net	  	Cash and cash equivalents	  	Cash balances	  				  	 	48,823,361	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Bank balances	  				  	 	76,287,432	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Short-term deposits	  				  	 	20,204,681	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Receivables	  	Credit card and trade receivables, net	  	 	6	  	  	 	1,151,657,320	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Receivables from related entities	  	Receivables from related entities, current	  				  	 	82,334	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Tax assets	  	Tax assets, current	  				  	 	6,962,369	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
Available –for –sale	  		  		  				  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
									
Financial liabilities and payables	  	Bank loans	  	Current	  	 	12	  	  	 	156,345,921	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-Current	  	 	12	  	  	 	645,878,724	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Bonds payable	  	Current	  	 	12	  	  	 	24,531,922	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-Current	  	 	12	  	  	 	1,141,130,894	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other loans (lease)	  	Current	  	 	12	  	  	 	4,571,948	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-Current	  	 	12	  	  	 	16,372,497	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Deposits and savings Accounts	  	Current	  	 	12	  	  	 	135,423,328	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-Current	  	 	12	  	  	 	10,849,475	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Debt purchase Bretas	  	Non-Current	  	 	12	  	  	 	76,923,594	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Letters of credit	  	Current	  	 	12	  	  	 	10,722,087	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Trade payables	  	Current	  	 	13	  	  	 	1,388,459,617	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  		  	Non-Current	  	 	13	  	  	 	11,150,691	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Withholding taxes	  	Current	  	 	13	  	  	 	158,078,423	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Lease liabilities	  	Current	  	 	13	  	  	 	3,282,468	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other payables	  	Current	  	 	13	  	  	 	1,000,211	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Payables to related entities	  	Current	  				  	 	1,447,631	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Tax liabilities	  	Current	  				  	 	40,490,319	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	100	  	
	  	Other financial liabilities	  	Cross currency swaps	  	 	12	  	  	 	5,150,270	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	100	  	
	  		  	Put options (*)	  	 	12	  	  	 	240,955,817	  	  	 	—  	  	  	 	—  	  	  	 	100	  	  	 	—  	  	
									
Hedges	  	Hedging derivatives	  	Cash flow hedging liabilities	  	 	12	  	  	 	2,111,594	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Fair value hedging
liabilities	  	 	12	  	  	 	602,877	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Cash flow hedging assets	  	 	5	  	  	 	32,065,119	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
	  		  	Fair values hedging assets	  	 	5	  	  	 	14,914,495	  	  	 	—  	  	  	 	100	  	  	 	—  	  	  	 	—  	  	
(*) Net present value of the redeemable amount
Instruments classified as Level II consist mainly of 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. Instruments classified as Level III consist mainly of options contracts and financial derivatives. The fair value of these instruments has been determined using the net present value of discounted cash flows from the underlying asset and an analysis of market comparables.
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.
 
F-11

3.2 Reclassifications
As of the end of this reporting period, the Company has not reclassified any entries in the aforementioned financial instrument categories.
Note 4—Estimates, judgement or criteria applied by management
The preparation of interim financial statements requires management to make judgements, 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 consolidated interim financial statements, the significant processes employed made by management in applying the group’s accounting policies and the key sources of uncertainty with regard to estimation were the same as those that applied to the consolidated financial statements for the year ended December 31, 2011, with the exception of changes in estimates that are required in determining the provision for income taxes.
Note 5—Other financial assets, current and non current
The composition of this item as of June 30, 2012 and December 31, 2011 is as follows:

Other financial assets, current	  	As of
June 30,  2012	 	  	As of
December 31,  2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Shares	  	 	38,083	  	  	 	36,891	  	
Mutual Funds Shares	  	 	47,535,589	  	  	 	43,067,809	  	
Derivatives at fair value through profit and loss	  	 	—  	  	  	 	2,060,000	  	
Highly liquid financial instruments	  	 	7,455,035	  	  	 	5,362,015	  	
Call option (*)	  	 	—  	  	  	 	171,402,489	  	
	  	 	 	 	  	 	 	 	
Total other financial assets, current	  	 	55,028,707	  	  	 	221,929,204	  	

Other financial assets, non-current	  	As of
June 30, 2012	 	  	As of
December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Hedging derivatives	  	 	37,194,097	  	  	 	46,979,614	  	
	  	 	 	 	  	 	 	 	
Total other financial assets, non-current	  	 	37,194,097	  	  	 	46,979,614	  	
	  	 	 	 	  	 	 	 	
Mutual Funds shares are mainly fixed rate investments.
(*) On June 29, 2012, in connection with the purchase by the Company of the remaining 38.6062% interest in Jumbo Retail Argentina S.A. from UBS A.G. London Branch, Cencosud S.A. and UBS A.G. London Branch agreed to terminate the purchase option (call) and put option (put) and associated rights and obligations between the parties. The accounting effects of this decision are recognized in equity under “other reserves.”
 
F-12

Note 6—Trade receivables and other receivables
Trade receivables and other receivables as of June 30, 2012 and December 31, 2011 are as follows:

Trade receivables and other receivables, net, current	  	As of
June 30,  2012	 	  	As of
December 31,  2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Trade receivables net, current	  	 	105,563,145	  	  	 	130,061,944	  	
Credit card receivables net, current	  	 	462,869,511	  	  	 	496,758,427	  	
Other receivables, net, current	  	 	271,194,365	  	  	 	287,019,174	  	
Letters of credit loans	  	 	513,803	  	  	 	728,625	  	
Consumer installment credit	  	 	43,450,888	  	  	 	15,812,537	  	
	  	 	 	 	  	 	 	 	
Total	  	 	883,591,712	  	  	 	930,380,707	  	

Trade receivables and other receivables, net, non-current	  	As of
June 30, 2012	 	  	As of
December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Trade receivables net	  	 	286,068	  	  	 	304,780	  	
Credit card receivables net	  	 	59,473,424	  	  	 	70,615,145	  	
Other receivables, net	  	 	11,070,031	  	  	 	8,807,825	  	
Letters of credit loans	  	 	12,392,413	  	  	 	10,802,064	  	
Consumer installment credit	  	 	69,239,654	  	  	 	103,913,701	  	
	  	 	 	 	  	 	 	 	
Total	  	 	152,461,590	  	  	 	194,443,515	  	

Trade receivables and other receivables, gross, current	  	As of
June 30, 2012	 	  	As of
December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Trade receivables gross, current	  	 	118,746,993	  	  	 	148,214,060	  	
Credit card receivables gross, current	  	 	516,779,043	  	  	 	555,800,756	  	
Other receivables gross, current	  	 	286,048,809	  	  	 	297,707,299	  	
Letters of credit loans	  	 	864,396	  	  	 	728,625	  	
Consumer installment credit	  	 	56,330,130	  	  	 	27,577,540	  	
	  	 	 	 	  	 	 	 	
Total	  	 	978,769,371	  	  	 	1,030,028,280	  	

Trade receivables and other receivables, gross, non-current	  	As of
June 30, 2012	 	  	As of
December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Trade receivables gross	  	 	286,068	  	  	 	304,780	  	
Credit card receivables gross	  	 	59,473,424	  	  	 	70,615,145	  	
Other receivables gross	  	 	11,070,031	  	  	 	8,807,825	  	
Letters of credit loans	  	 	12,392,413	  	  	 	10,802,064	  	
Consumer installment credit	  	 	69,239,654	  	  	 	103,913,701	  	
	  	 	 	 	  	 	 	 	
Total	  	 	152,461,590	  	  	 	194,443,515	  	

F-13

									
Trade receivables and other receivables close to maturity	  	As of
June 30,  2012	 	  	As of
December 31,  2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Maturing in less than three months	  	 	556,198,075	  	  	 	630,485,364	  	
Maturing between three and six months	  	 	100,037,661	  	  	 	69,940,662	  	
Maturing between six and twelve months	  	 	108,124,229	  	  	 	101,265,124	  	
Maturing in more than twelve months	  	 	152,461,590	  	  	 	194,443,515	  	
	  	 	 	 	  	 	 	 	
Total	  	 	916,821,555	  	  	 	996,134,665	  	
	  	 	 	 	  	 	 	 	
The maturity of past due trade receivables as of June 30, 2012 and December 31, 2011 is as follows:

Trade receivables fully matured but not impaired	  	As of
June 30,  2012	 	  	As of
December 31,  2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Maturing in less than three months	  	 	148,312,825	  	  	 	159,215,632	  	
Maturing between three and six months	  	 	35,860,088	  	  	 	34,361,276	  	
Maturing between six and twelve months	  	 	11,823,656	  	  	 	14,061,808	  	
Maturing in more than twelve months	  	 	18,412,837	  	  	 	20,698,414	  	
	  	 	 	 	  	 	 	 	
Total	  	 	214,409,406	  	  	 	228,337,1300	  	
	  	 	 	 	  	 	 	 	
The roll-forward of the bad debt allowance is as follows:

Change in bad debt allowance	  	As of
June 30,  2012	 	 	As of
December 31,  2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Initial balance	  	 	99,647,573	  	 	 	63,083,764	  	
Increase in reserve	  	 	58,497,006	  	 	 	114,175,472	  	
Increase for business combination	  	 	—  	  	 	 	15,350,400	  	
Reserve uses	  	 	(23,272,581	) 	 	 	(68,835,977	) 	
Decreases in reserve	  	 	(39,694,339	) 	 	 	(24,126,086	) 	
	  	 	 	 	 	 	 	 	
Total	  	 	95,177,659	  	 	 	99,647,573	  	
	  	 	 	 	 	 	 	 	
The maximum exposure to credit risk at the date of the report is the book value in each category of the trade account. The Company does not request collateral as a guarantee.
Note 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 Chilean Corporations and are not material in the period.
7.1 Board of Directors and key management of the Company
The Board of Directors as of June 30, 2012 is comprised of the following people:

Board of Directors	  	Role	  	Profession	
			
Horst Paulmann Kemna	  	President	  	Businessman	
			
Heike Paulmann Koepfer	  	Director	  	Commercial Engineer	
			
Peter Paulmann Koepfer	  	Director	  	Commercial Engineer	
			
Roberto Oscar Philipps	  	Director	  	National Public Accountant	
			
Cristian Eyzaguirre Johnston	  	Director	  	Economist	
			
Sven Von Appen Behrmann	  	Director	  	Businessman	
			
Erasmo Wong Lu	  	Director	  	Civil Engineer	
			
David Gallagher Patrickson	  	Director	  	Economist	
			
Julio Moura	  	Director	  	Engineer	
 
F-14

Key management of the Company as of June 30, 2012 is composed of the following people:

Senior management	  	Position	  	Profession	
			
Daniel Rodríguez	  	Corporate General Manager	  	Forest Engineer	
			
Carlos Mechetti	  	Corporate Manager of Legal Matters	  	Attorney at law	
			
Bronislao Jandzio	  	Corporate Audit Manager	  	Business Administrator	
			
Pablo Castillo	  	Manager of Supermarkets Division	  	Commercial Engineer	
			
Carlos Wulf	  	Manager of Homecenter Division	  	Naval Engineer	
			
Renato Fernández	  	Manager of Corporate Affairs	  	Journalist	
			
Jaime Soler	  	Manager of Department Stores Division	  	Commercial Engineer	
			
Renzo Paonessa	  	Manager of Real Estate Division	  	Commercial Engineer	
			
Marcelo Reyes	  	Corporate Risk Managing Director	  	Commercial Engineer	
			
Patricio Rivas	  	Manager of Financial Retail Division	  	Commercial Engineer	
			
Pietro Illuminati	  	Manager of Procurement	  	Industrial Engineer	
			
Mauricio Soto	  	Corporate Digital Clients and Business Manager	  	Commercial Engineer	
			
Rodrigo Hetz	  	Corporate Human Resources Management	  	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, 2012, set the following amounts for the 2012 period:
 
 	•	 	Fees paid for attending Board sessions: payment of UF 200 each month for those holding the position of Director of the Board and twice this amount for the President and Vice-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 67 for each session they attend.	
The details of the amount paid to Directors for the six-month periods ended June 30, 2012, and June 30, 2011, is as follows:

 	  	 	 	  	For the period ended
June 30,	 	
Name	  	Role	 	  	2012	 	  	2011	 	
 	  	 	 	  	ThCh$	 	  	ThCh$	 	
Horst Paulmann Kemna	  	 	Chairman	  	  	 	49,644	  	  	 	43,453	  	
Heike Paulmann Koepfer	  	 	Director	  	  	 	33,033	  	  	 	28,871	  	
Peter Paulmann Koepfer	  	 	Director	  	  	 	24,822	  	  	 	21,789	  	
Bruno Philippi Irarrázaval	  	 	Director	  	  	 	—  	  	  	 	21,769	  	
Roberto Oscar Philipps	  	 	Director	  	  	 	24,822	  	  	 	26,488	  	
Cristián Eyzaguirre Johnston	  	 	Director	  	  	 	33,031	  	  	 	28,651	  	
Sven von Appen Behmann	  	 	Director	  	  	 	24,822	  	  	 	21,779	  	
Erasmo Wong Lu Vega	  	 	Director	  	  	 	24,822	  	  	 	21,934	  	
Julio Moura Neto	  	 	Director	  	  	 	37,411	  	  	 	—  	  	
David Gallagher Patrickson	  	 	Director	  	  	 	33,033	  	  	 	13,343	  	
	  				  	 	 	 	  	 	 	 	
Total	  				  	 	285,440	  	  	 	228,077	  	
	  				  	 	 	 	  	 	 	 	
7.3 Compensation paid to senior management

 	  	For the period ended
June 30,	 	
Key management compensation	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Salary and other short term employee benefits	  	 	2,335,000	  	  	 	2,481,000	  	
Share-based payments	  	 	190,948	  	  	 	251,195	  	
	  	 	 	 	  	 	 	 	
Total	  	 	2,525,948	  	  	 	2,732,195	  	
	  	 	 	 	  	 	 	 	
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.
 
F-15

NOTE 8—Inventory
The composition of this item as of June 30, 2012 and December 31, 2011 is as follows:

Inventory category	  	As of
June 30,  2012	 	 	As of
December 31,  2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Raw materials	  	 	5,390,868	  	 	 	3,399,366	  	
Goods	  	 	872,928,087	  	 	 	819,944,380	  	
Finished goods	  	 	433,548	  	 	 	305,559	  	
Provisions	  	 	(53,146,049	) 	 	 	(54,176,854	) 	
	  	 	 	 	 	 	 	 	
Total	  	 	825,606,454	  	 	 	769,472,451	  	
	  	 	 	 	 	 	 	 	
The composition of inventories by business as of June 30, 2012 and December 31, 2011 is as follows:

 	  	As of June 30, 2012	 	
Inventory category	  	Department
Stores	 	  	Supermarkets	 	  	Home
Improvement	 	  	Total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Raw materials	  	 	2,551,219	  	  	 	2,839,649	  	  	 	—  	  	  	 	5,390,868	  	
Goods	  	 	142,581,897	  	  	 	489,616,982	  	  	 	187,583,159	  	  	 	819,782,038	  	
Finished goods	  	 	—  	  	  	 	433,548	  	  	 	—  	  	  	 	433,548	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	145,133,116	  	  	 	492,890,179	  	  	 	187,583,159	  	  	 	825,606,454	  	

 	  	As of December 31, 2011	 	
Inventory category	  	Department
Stores	 	  	Supermarkets	 	  	Home
Improvement	 	  	Total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Raw materials	  	 	706,255	  	  	 	2,693,111	  	  	 	—  	  	  	 	3,399,366	  	
Goods	  	 	132,257,450	  	  	 	442,339,991	  	  	 	191,170,085	  	  	 	765,767,526	  	
Finished goods	  	 	—  	  	  	 	305,559	  	  	 	—  	  	  	 	305,559	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	132,963,705	  	  	 	445,338,661	  	  	 	191,170,085	  	  	 	769,472,451	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
The Company periodically appraises its inventory 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 at the lower of the purchase price or production cost, net of allowance for obsolescence and net realizable value.
The carrying amount of inventories at June 30, 2012 and December 31, 2011 to its fair value less selling costs is as follows:

 	  	Inventories at net realizable as of	 	
Types of inventory	  	June 30, 2012	 	  	December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Inventory	  	 	31,285,211	  	  	 	30,835,953	  	
	  	 	 	 	  	 	 	 	
Total	  	 	31,285,211	  	  	 	30,835,953	  	

F-16

Note 9—Intangible assets
9.1 Intangibles assets other than goodwill
Intangible assets are mainly composed of software and brands acquired in business combinations. The detail as of June 30, 2012 and December 31, 2011 is as follows:

 	  	As of	 	
Intangibles assets other than goodwill, net	  	June 30, 2012	 	  	December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Finite life intangible assets, net	  	 	58,525,798	  	  	 	60,918,919	  	
Indefinite life intangible assets, net	  	 	479,820,186	  	  	 	465,839,256	  	

Intangible assets, net	  	 	538,345,984	  	  	 	526,758,175	  	

Patents, Trademarks and other rights, net	  	 	479,820,186	  	  	 	465,839,256	  	
Software (IT)	  	 	26,177,985	  	  	 	24,008,338	  	
Other identifiable intangible assets, net	  	 	32,347,813	  	  	 	36,910,581	  	

Identifiable intangible assets, net	  	 	538,345,984	  	  	 	526,758,175	  	

									
Intangibles assets other than goodwill, gross	  	June 30, 2012	 	  	December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Finite life intangible assets, gross	  	 	111,859,085	  	  	 	109,591,630	  	
Indefinite life intangible assets, gross	  	 	479,820,186	  	  	 	465,839,256	  	

Intangible assets, gross	  	 	591,679,271	  	  	 	575,430,886	  	

Patents, trade marks and other rights, gross	  	 	479,820,186	  	  	 	465,839,256	  	
Software (IT)	  	 	68,704,125	  	  	 	63,901,802	  	
Other identifiable intangible assets, gross	  	 	43,154,960	  	  	 	45,689,828	  	

Identifiable intangible assets, gross	  	 	591,679,271	  	  	 	575,430,886	  	

									
Accumulated amortization and value impairment	  	June 30, 2012	 	 	December 31, 2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Finite life intangible assets	  	 	(53,333,287	) 	 	 	(48,672,711	) 	
Indefinite life intangible assets	  	 	—  	  	 	 	—  	  	

Intangible assets, gross	  	 	(53,333,287	) 	 	 	(48,672,711	) 	

Software (IT)	  	 	(42,526,140	) 	 	 	(39,893,464	) 	
Other identifiable intangible assets	  	 	(10,807,147	) 	 	 	(8,779,247	) 	

Accumulated amortization and value impairment	  	 	(53,333,287	) 	 	 	(48,672,711	) 	
	  	 	 	 	 	 	 	 	
Other identifiable intangible assets mainly correspond to customer’s database.
Regardings the treatment of intangibles with an indefinite life, the recoverable amount is estimated annually at each closing or more frequently if events or changes in circumstances indicate a potential impairment.
The detail of the useful lives of intangible assets as of June 30, 2012 and December 31, 2011 is as follows:
 
F-17

									
Estimated useful lives or amortization rates used	  	Minimum life	 	  	Maximum life	 	
Software products development costs	  	 	1	  	  	 	7	  	
Patents, trademarks and other rights	  	 	Indefinite	  	  	 	Indefinite	  	
Software (IT)	  	 	1	  	  	 	7	  	
Other identifiable intangible assets	  	 	1	  	  	 	5	  	
The details of the amounts of identifiable intangible assets that are individually significant as of June 30, 2012 is as follows:

Individually significant identifiable intangible assets	  	Book value
2012	 	  	Book value
2011	 	  	Remaining
amortization
period	 	  	Country
of origin	 	  	Segment	 	
 	  	ThCh$	 	  	ThCh$	 	  	 	 	  	 	 	  	 	 	
Paris Brand	  	 	326,363,010	  	  	 	326,363,010	  	  	 	Indefinite	  	  	 	Chile	  	  	 	Department stores	  	
Johnson’s Brand	  	 	15,733,003	  	  	 	15,733,003	  	  	 	Indefinite	  	  	 	Chile	  	  	 	Department stores	  	
Wong Brand	  	 	30,399,812	  	  	 	31,177,350	  	  	 	Indefinite	  	  	 	Peru	  	  	 	Supermarkets	  	
Metro Brand	  	 	66,326,862	  	  	 	68,023,309	  	  	 	Indefinite	  	  	 	Peru	  	  	 	Supermarkets	  	
Bretas Brand	  	 	20,965,855	  	  	 	23,326,525	  	  	 	Indefinite	  	  	 	Brazil	  	  	 	Supermarkets	  	
Perini Brand	  	 	938,800	  	  	 	1,044,475	  	  	 	Indefinite	  	  	 	Brazil	  	  	 	Supermarkets	  	
Pierre Cardin License	  	 	171,584	  	  	 	171,584	  	  	 	Defined	  	  	 	Chile	  	  	 	Department stores	  	
Prezunic Brand	  	 	18,921,260	  	  	 	—  	  	  	 	Indefinite	  	  	 	Brazil	  	  	 	Supermarkets	  	
	  	 	 	 	  	 	 	 	  				  				  				
Total	  	 	479,820,186	  	  	 	465,839,256	  	  				  				  				
	  	 	 	 	  	 	 	 	  				  				  				
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 Company intends to maintain these brandsand 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 obsolescence from technological or other causes.	
 
F-18

9.2 Goodwill
The detail of goodwill as of June 30, 2012 and December 31, 2011 is as follows:

ID
(Unique tax
number)	  	Company	  	December 31,
2011	 	  	Increase
(decrease)
adjustments
for business
combinations	 	  	Increase
(decrease)
foreign
exchange	 	 	June 30,
2012	 	
 	  	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	 	ThCh$	 	
	  	Constructora Reineta S.A.	  	 	255,783	  	  				  	 	(20,888	) 	 	 	234,895	  	
	  	Blaisten S.A.	  	 	5,358,698	  	  				  	 	(437,592	) 	 	 	4,921,106	  	
	  	E Wong S.A.	  	 	2,871,490	  	  				  	 	(71,613	) 	 	 	2,799,877	  	
	  	Metro Inmobiliaria S.A.	  	 	1,572,955	  	  				  	 	(39,228	) 	 	 	1,533,727	  	
	  	Mercantil Pizarro	  	 	3,070,295	  	  				  	 	(76,570	) 	 	 	2,993,725	  	
	  	Supermercados El Centro	  	 	3,939,136	  	  				  	 	(98,239	) 	 	 	3,840,897	  	
	  	Inmobiliaria Los Alamos S.A.C.	  	 	226,239	  	  				  	 	(5,642	) 	 	 	220,597	  	
	  	GSW S.A.	  	 	244,176,508	  	  				  	 	(6,089,569	) 	 	 	238,086,939	  	
	  	Gbarbosa Holding LLC	  	 	186,076,300	  	  				  	 	(18,826,323	) 	 	 	167,249,977	  	
	  	Mercantil Rodríguez Comercial Ltda.	  	 	9,372,242	  	  				  	 	(948,239	) 	 	 	8,424,003	  	
	  	Super Família Comercial de Alimentos Ltda.	  	 	12,160,417	  	  				  	 	(1,230,334	) 	 	 	10,930,083	  	
	  	Perini Comercial de Alimentos Ltda.	  	 	7,050,928	  	  				  	 	(713,380	) 	 	 	6,337,548	  	
	  	Irmaos Bretas Filhos e Cia. Ltda.	  	 	290,799,233	  	  				  	 	(29,325,315	) 	 	 	261,473,918	  	
	  	Prezunic Comercial Ltda.	  	 	—  	  	  	 	185,607,659	  	  	 	(18,362,843	) 	 	 	167,244,816	  	
76.193.360-4	  	Umbrale S.A.	  	 	1,442,588	  	  				  	 	—  	  	 	 	1,442,588	  	
76.203.080-2	  	Mega Supermercado Infante Ltda.	  	 	3,598,780	  	  				  	 	—  	  	 	 	3,598,780	  	
78.072.360-2	  	Distribución y Administraciones Ltda.	  	 	5,900,758	  	  				  	 	—  	  	 	 	5,900,758	  	
78.509.620-7	  	Preaservice Ltda.	  	 	809,682	  	  				  	 	—  	  	 	 	809,682	  	
79.829.500-4	  	Comercializadora Foster Ltda.	  	 	4,536,210	  	  				  	 	—  	  	 	 	4,536,210	  	
83.274.300-3	  	Empresas Almacenes Paris S.A.	  	 	120,650,073	  	  				  	 	—  	  	 	 	120,650,073	  	
83.336.200-3	  	Montrone Pla S.A.	  	 	33,253,496	  	  				  	 	—  	  	 	 	33,253,496	  	
83.681.900-4	  	Supermercado Montecarlo S.A.	  	 	45,250,207	  	  				  	 	—  	  	 	 	45,250,207	  	
84.671.700-5	  	Santa Isabel S.A.	  	 	18,179,034	  	  				  	 	—  	  	 	 	18,179,034	  	
96.671.750-5	  	Easy S.A.	  	 	224,445	  	  				  	 	—  	  	 	 	224,445	  	
96.805.390-6	  	Proterra S.A.	  	 	1,003,013	  	  				  	 	—  	  	 	 	1,003,013	  	
	  		  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total	  		  	 	1,001,778,510	  	  	 	185,607,659	  	  	 	(76,245,775	) 	 	 	1,111,140,394	  	

F-19

The detail of goodwill as of December 31, 2011 and December 31, 2010 is as follows:

ID
(Unique tax
number)	  	Company	  	December 31,
2010	 	  	Increase
(decrease)
adjustments
for business
combinations	 	 	Increase
(decrease)
foreign
exchange	 	 	December 31,
2011	 	
 	  	 	  	ThCh$	 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
	  	Constructora Reineta S.A.	  	 	249,512	  	  	 	—  	  	 	 	6,271	  	 	 	255,783	  	
	  	Blaisten S.A.	  	 	5,227,328	  	  	 	—  	  	 	 	131,370	  	 	 	5,358,698	  	
	  	E Wong S.A.	  	 	2,478,066	  	  	 	—  	  	 	 	393,424	  	 	 	2,871,490	  	
	  	Metro Inmobiliaria S.A.	  	 	1,357,444	  	  	 	—  	  	 	 	215,511	  	 	 	1,572,955	  	
	  	Mercantil Pizarro	  	 	2,649,633	  	  	 	—  	  	 	 	420,662	  	 	 	3,070,295	  	
	  	Supermercados El Centro	  	 	3,399,433	  	  	 	—  	  	 	 	539,703	  	 	 	3,939,136	  	
	  	Inmobiliaria Los Alamos S.A.C.	  	 	195,242	  	  	 	—  	  	 	 	30,997	  	 	 	226,239	  	
	  	GSW S.A.	  	 	210,721,791	  	  	 	—  	  	 	 	33,454,717	  	 	 	244,176,508	  	
	  	Gbarbosa Holding LLC	  	 	188,136,161	  	  	 	—  	  	 	 	(2,059,861	) 	 	 	186,076,300	  	
	  	Mercantil Rodríguez Comercial Ltda.	  	 	9,475,993	  	  	 	—  	  	 	 	(103,751	) 	 	 	9,372,242	  	
	  	Super Família Comercial de Alimentos Ltda.	  	 	15,114,917	  	  	 	(2,863,821	) 	 	 	(90,679	) 	 	 	12,160,417	  	
	  	Perini Comercial de Alimentos Ltda.	  	 	9,660,490	  	  	 	(2,503,792	) 	 	 	(105,770	) 	 	 	7,050,928	  	
	  	Irmaos Bretas Filhos e Cia. Ltda.	  	 	329,707,742	  	  	 	(37,272,936	) 	 	 	(1,635,573	) 	 	 	290,799,233	  	
76.193.360-4	  	Umbrale S.A.	  	 	1,442,588	  	  	 	—  	  	 	 	—  	  	 	 	1,442,588	  	
76.203.080-2	  	Mega Supermercado Infante Ltda.	  	 	3,598,780	  	  	 	—  	  	 	 	—  	  	 	 	3,598,780	  	
78.072.360-2	  	Distribución y Administraciones Ltda.	  	 	5,900,758	  	  	 	—  	  	 	 	—  	  	 	 	5,900,758	  	
78.509.620-7	  	Preaservice Ltda.	  	 	809,682	  	  	 	—  	  	 	 	—  	  	 	 	809,682	  	
79.829.500-4	  	Comercializadora Foster Ltda.	  	 	4,536,210	  	  	 	—  	  	 	 	—  	  	 	 	4,536,210	  	
83.274.300-3	  	Empresas Almacenes Paris S.A.	  	 	120,650,073	  	  	 	—  	  	 	 	—  	  	 	 	120,650,073	  	
83.336.200-3	  	Montrone Pla S.A.	  	 	33,253,496	  	  	 	—  	  	 	 	—  	  	 	 	33,253,496	  	
83.681.900-4	  	Supermercado Montecarlo S.A.	  	 	45,250,207	  	  	 	—  	  	 	 	—  	  	 	 	45,250,207	  	
84.671.700-5	  	Santa Isabel S.A.	  	 	18,179,034	  	  	 	—  	  	 	 	—  	  	 	 	18,179,034	  	
96.671.750-5	  	Easy S.A.	  	 	224,445	  	  	 	—  	  	 	 	—  	  	 	 	224,445	  	
96.805.390-6	  	Proterra S.A.	  	 	1,003,013	  	  	 	—  	  	 	 	—  	  	 	 	1,003,013	  	
	  		  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  		  	 	1,013,222,038	  	  	 	(42,640,549	) 	 	 	31,197,021	  	 	 	1,001,778,510	  	

F-20

Goodwill is allocated to each store or group of stores, as appropriate, in each country and business segment (cash generating units). The following table details goodwill by business segment and country as of June 30, 2012 and December 31, 2011:

 	  	As of,	 	
Goodwill per segment and country	  	June 30,
2012	 	  	December 31,
2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Real Estate & Shopping—Argentina	  	 	234,895	  	  	 	255,783	  	
Supermarkets—Chile	  	 	106,991,957	  	  	 	106,991,957	  	
Supermarkets—Brasil	  	 	621,660,345	  	  	 	505,459,120	  	
Supermarkets—Perú	  	 	249,475,762	  	  	 	255,856,623	  	
Home Improvement—Argentina	  	 	4,921,106	  	  	 	5,358,698	  	
Home Improvement—Chile	  	 	1,227,458	  	  	 	1,227,458	  	
Department Stores—Chile	  	 	126,628,871	  	  	 	126,628,871	  	
	  	 	 	 	  	 	 	 	
Total	  	 	1,111,140,394	  	  	 	1,001,778,510	  	
	  	 	 	 	  	 	 	 	
The basis of the amount recoverable from the cash generating units is the value in use, which is determined by the net present value of the cash flows that the cash generating units will produce, discounted based on a rate of average cost of capital in line with the business of each country.
The financial projections for determining the net present value of future cash flows are modeled considering the principal variables that determine the historic flows of each cash generating unit and the budgets approved by the Board. Conservative growth rates are used for this purpose, which fluctuate between 0% and 3%, and nil after the fifth year of the projection; and the degree of maturity of each of the investments is taken into account. The most sensitive variables in these projections are the discount rates applied in the determination of the net present value of the projected cash flows, operating costs, store occupation factors and the market prices of the goods and services traded.
A differentiated discount rate is used for each country in which the Company operates, depending on the related risk. For purposes of the impairment tests, sensitivity tests are carried out for the discount rates applied in the financial projections, in a variation range of 5% to 10%. The above calculation shows that, even if the considered fluctuations are materialized it would not produce eventual impairments.
Prezunic Comercial Ltda.
On January 2, 2012 the Company’s subsidiary Cencosud Brasil Comercial Ltda. acquired 100% ownership of the Prezunic Comercial Ltda. shares pursuant to an acquisition agreement between the Company and Andrea Dias de Cunha and Marcio Dias da Cunha.
The total price of the shares was R$875,000,000 (ThCh$242,690,000) which was adjusted based on the variances in debt and work in capital of R$216,513,232 (ThCh$60,052,110), accordingly the total acquisition price net of adjustments was R$658,486,768 (ThCh$182,637,890).
The above mentioned price was paid in installment, including an initial payment of R$390,723,722 (ThCh$108,371,132) at the time of execution of the contract with the remaining amount to be paid in four annual installments from January 1, 2013 to January 1, 2016.
The acquired company operates 31 supermarkets stores, one distribution center and has more than 7,300 employees. As a result, the acquired company represents one of the market-leading supermarkets in the Rio de Janeiro state.
The Company is in the process of determining the fair value measurement of assets and liabilities. According to IFRS 3, the Company must conclude this process within one year following the acquisition. All related expenses have been recorded in the line item “Administrative expenses” of the Unaudited Condensed Interim Consolidated Statements of Income of the Company.

Assets	  	Recognized
at fair value when
acquired	 	
 	  	ThCh$	 	
Currents assets	  				
Cash and cash equivalent	  	 	6,220,882	  	
 
F-21

					
Assets	  	Recognized
at fair value when
acquired	 	
Trade receivables and other receivables	  	 	37,311,771	  	
Inventories	  	 	33,648,544	  	
Current tax assets	  	 	999,408	  	
	  	 	 	 	
Total current assets	  	 	78,180,605	  	
	  	 	 	 	
Non-current assets	  				
Intangible assets other than goodwill	  	 	21,238,774	  	
Property, plant and equipment	  	 	40,489,257	  	
Deferred income tax assets	  	 	672,688	  	
	  	 	 	 	
Total non-current assets	  	 	62,400,719	  	
	  	 	 	 	
Total assets	  	 	140,581,324	  	

					
Net equity and liabilities	  	Recognized
at fair value when
acquired	 	
 	  	ThCh$	 	
Current liabilities	  				
Other financial liabilities	  	 	63,038,343	  	
Trade payables and other payables	  	 	61,392,392	  	
Provisions	  	 	1,978,495	  	
Current income tax liabilities	  	 	7,535,255	  	
Other non financial liabilities, current	  	 	4,217,781	  	
	  	 	 	 	
Total current liabilities	  	 	138,162,266	  	
	  	 	 	 	
Non-current liabilities	  				
Total non-current liabilities	  	 	5,388,827	  	
	  	 	 	 	
Total liabilities	  	 	143,551,093	  	
	  	 	 	 	
Net equity	  				
Total net equity	  	 	—  	  	
Total net equity and liabilities	  	 	143,551,093	  	
	  	 	 	 	
Net liabilities	  	 	(2,969,769	) 	
Price paid	  	 	182,637,890	  	
	  	 	 	 	
Goodwill	  	 	185,607,659	  	
Difference cumulative currency translation	  	 	(18,362,843	) 	
	  	 	 	 	
Goodwill at June 30, 2012	  	 	167,244,816	  	
	  	 	 	 	
Intangible assets/ brands	  	 	—  	  	
Sociedad Retail S.A. (Johnson’s Group)
In connection with the acquisition of Sociedad Retail S.A. (Johnson’s Group) on January 2, 2012, the Company paid the remaining outstanding amount of the purchase price of Ch$11,029,654. This amount is included in the line “Purchase of participation in subsidiaries” in the Unaudited Condensed Interim Consolidated Statements of Cash Flows. Additionally, on January 6, 2012, Sociedad Retail S.A. merged with Cencosud Retail S.A. As of June 30, 2012, the Company is still in the measurement period, and has therefore retrospectively adjusted the provisional amounts recognized at the acquisition date based on IFRS 3. The disclosures have been adjusted as follows:
 
F-22

													
Assets	  	 	 	  	Recognized at
fair value
when acquired	 	 	Book value as of
December 20, 2011	 	
 	  	 	 	  	ThCh$	 	 	ThCh$	 	
 	  	Note	 	  	 	 	 	 	 	
Intangible assets other than goodwill	  	 	9	  	  	 	25,571,461	  	 	 	460,218	  	
Short term provisions	  	 	13	  	  	 	1,303,951	  	 	 	962,480	  	
Long-term provisions	  	 	13	  	  	 	26,680,193	  	 	 	3,869,491	  	
Deferred tax liabilities	  				  	 	874,120	  	 	 	300,640	  	
Retained earnings	  	 	14	  	  	 	(32,084,436	) 	 	 	(33,470,026	) 	

Assets	  	Recognized at
fair value
when acquired	 	  	Book value as of
December 20, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Current assets	  				  				
Cash and cash equivalents	  	 	14,831,074	  	  	 	14,831,074	  	
Other financial assets, current	  	 	790,995	  	  	 	790,995	  	
Trade debtors and other accounts receivables	  	 	25,671,000	  	  	 	25,671,000	  	
Inventories	  	 	19,313,441	  	  	 	19,313,441	  	
Current tax assets	  	 	610	  	  	 	610	  	
	  	 	 	 	  	 	 	 	
Total current assets	  	 	60,607,120	  	  	 	60,607,120	  	
	  	 	 	 	  	 	 	 	
Non-current assets	  				  				
Trade debtors and other accounts receivable, non-current	  	 	7,672,388	  	  	 	7,672,388	  	
Intangible assets other than goodwill	  	 	25,571,461	  	  	 	460,218	  	
Property, plant and equipment	  	 	56,697,426	  	  	 	56,697,426	  	
Deferred income tax liabilities	  	 	18,546,106	  	  	 	18,546,106	  	
	  	 	 	 	  	 	 	 	
Total non-current assets	  	 	108,487,381	  	  	 	83,376,138	  	
	  	 	 	 	  	 	 	 	
Total assets	  	 	169,094,501	  	  	 	143,983,258	  	

									
Net equity and liabilities	  	Recognized at
fair value
when acquired	 	 	Book value as of
December 20, 2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Current liabilities	  				 				
Other financial liabilities, current	  	 	6,175,012	  	 	 	6,175,012	  	
Trade creditors and other accounts payable	  	 	60,632,553	  	 	 	60,632,553	  	
Intercompany accounts receivable, current	  	 	2,439,604	  	 	 	2,439,604	  	
Other short-term provisions	  	 	1,303,951	  	 	 	962,480	  	
Tax liabilities, current	  	 	22,680	  	 	 	22,680	  	
Employee benefit provisions, current	  	 	1,008,751	  	 	 	1,008,751	  	
Other non-financial liabilities, current	  	 	41,007	  	 	 	41,007	  	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	71,623,558	  	 	 	71,282,087	  	
	  	 	 	 	 	 	 	 	
Non-current liabilities	  				 				
Other financial liabilities, non-current	  	 	16,622,221	  	 	 	16,622,221	  	
Non-current liabilities	  	 	274,862	  	 	 	274,862	  	
Other long-term provisions	  	 	26,680,193	  	 	 	3,869,491	  	
Deferred income tax liabilities	  	 	874,120	  	 	 	300,640	  	
	  	 	 	 	 	 	 	 	
Total non-current liabilities	  	 	44,451,396	  	 	 	21,067,214	  	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	116,074,954	  	 	 	92,349,301	  	
	  	 	 	 	 	 	 	 	
Net equity	  				 				
Paid in capital	  	 	—  	  	 	 	82,335,911	  	
Retained earnings (accumulated losses)	  	 	—  	  	 	 	(33,470,026	) 	
Other reserves	  				 	 	2,768,072	  	
	  				 	 	 	 	
Net equity attributable to equity instrument holders:	  				 				
Net of controlling entity	  	 	—  	  	 	 	51,633,957	  	
	  				 	 	 	 	
Total net equity and liabilities	  				 	 	143,983,258	  	
	  				 	 	 	 	
Net Assets	  	 	(53,019,547	) 	 	 	—  	  	
Price paid	  	 	39,642,000	  	 	 	—  	  	
Negative goodwill at December 31, 2011	  	 	13,377,547	  	 	 	—  	  	
 
F-23

Note 10—Property, plant and equipment
10.1 The composition of this item as of June 30, 2012 and December 31, 2011 is as follows:

 	  	As of	 	
 	  	June 30, 2012	 	  	December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Construction in progress	  	 	287,404,242	  	  	 	351,068,952	  	
Land	  	 	597,403,042	  	  	 	591,652,467	  	
Buildings	  	 	600,002,605	  	  	 	612,325,234	  	
Plant and equipment	  	 	274,776,422	  	  	 	216,228,942	  	
Information technology equipment	  	 	30,800,946	  	  	 	23,368,520	  	
Fixed installations and accessories	  	 	311,418,986	  	  	 	258,039,171	  	
Motor vehicles	  	 	1,214,646	  	  	 	1,080,179	  	
Leasehold improvements	  	 	198,299,794	  	  	 	162,306,720	  	
Other property, plant and equipment	  	 	44,079,370	  	  	 	44,219,005	  	
	  	 	 	 	  	 	 	 	
Total	  	 	2,345,400,053	  	  	 	2,260,289,190	  	

									
 	  	As of	 	
Property, plant and equipment categories, gross	  	June 30, 2012	 	  	December 31, 2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Construction in progress	  	 	287,404,242	  	  	 	351,068,952	  	
Land	  	 	597,403,042	  	  	 	591,652,467	  	
Buildings	  	 	766,431,873	  	  	 	777,068,292	  	
Plant and equipment	  	 	546,434,749	  	  	 	473,027,687	  	
Information technology equipment	  	 	118,269,677	  	  	 	109,335,090	  	
Fixed installations and accessories	  	 	523,974,027	  	  	 	454,074,850	  	
Motor vehicles	  	 	5,106,055	  	  	 	4,424,610	  	
Leasehold improvements	  	 	245,196,428	  	  	 	200,037,294	  	
Other property, plant and equipment	  	 	49,757,707	  	  	 	49,582,973	  	
	  	 	 	 	  	 	 	 	
Total	  	 	3,139,977,800	  	  	 	3,010,272,215	  	

									
 	  	As of	 	
Accumulated depreciation and impairment of property, plant and equipment	  	June 30, 2012	 	 	December 31, 2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Buildings	  	 	(166,429,268	) 	 	 	(164,743,058	) 	
Plant and equipment	  	 	(271,658,327	) 	 	 	(256,798,745	) 	
Information technology equipment	  	 	(87,468,731	) 	 	 	(85,966,570	) 	
Fixed installations and accessories	  	 	(212,555,041	) 	 	 	(196,035,679	) 	
Motor vehicles	  	 	(3,891,409	) 	 	 	(3,344,431	) 	
Leasehold improvements	  	 	(46,896,634	) 	 	 	(37,730,574	) 	
Other property, plant and equipment	  	 	(5,678,337	) 	 	 	(5,363,968	) 	
	  	 	 	 	 	 	 	 	
Total	  	 	(794,577,747	) 	 	 	(749,983,025	) 	

F-24

10.2 The following table shows the technical useful lives of assets.

Useful life 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	  	
Note 11—Investment properties
11.1 The roll-forward of investment properties at June 30, 2012 and December 31, 2011 is the following:

 	  	As of	 	
Roll-forward of Investment properties, net, fair value method	  	June 30, 2012	 	 	December 31, 2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Investment properties, net, cost model, beginning balance	  	 	1,310,143,075	  	 	 	1,187,154,458	  	
Increase due to reappraisal with impact to income	  	 	39,159,740	  	 	 	72,797,791	  	
Additions, investment properties, fair value method	  	 	72,100,728	  	 	 	149,857,170	  	
Transfer to (from) inventory, investment properties, fair value method	  	 	1,557,396	  	 	 	—  	  	
Transfer to (from) owner-occupied property, investment property, cost model	  	 	—  	  	 	 	(113,224,496	) 	
Retirement, investment properties, fair value method	  	 	(1,159	) 	 	 	(4,563,481	) 	
			
Increase (decrease) in foreign exchange rate, Investment	  				 				
Properties, fair value method	  	 	(24,647,732	) 	 	 	18,121,633	  	
	  	 	 	 	 	 	 	 	
Changes in investment properties, fair value method, total	  	 	88,168,973	  	 	 	122,988,617	  	
	  	 	 	 	 	 	 	 	
Investment properties, fair value method, ending balance	  	 	1,398,312,048	  	 	 	1,310,143,075	  	
	  	 	 	 	 	 	 	 	
11.2 Income and expense from investment properties

 	  	As of June 30,	 	
 	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Revenue from investment property leases	  	 	69,542,623	  	  	 	60,469,930	  	
Direct expense of operation of investment properties which generate lease revenue	  	 	23,422,440	  	  	 	18,403,983	  	
Direct expense of operation of investment properties which do not generate lease revenue	  	 	—  	  	  	 	—  	  	
11.3 As of June 30, 2012, and December 31, 2011, investment properties are not encumbered.
11.4 As of June 30, 2012, and December 31, 2011, there are no commitments to acquire investment properties.
11.5 There are no restrictions on ownership of assets.
11.6 The Company is applying the exception included in IFRS 40 (paragraph 53) in connection with the construction of the Costanera Center, because the fair value is not reliably determinable on a continuing basis.
 
F-25

Note 12—Other financial liabilities, current and non-current
The composition of this item as of June 30, 2012 and December 31, 2011 is as follows:
12.1 Types of interest-bearing loans

 	  	Balance as of 06/30/2012	 	  	Balance as of 12/31/2011	 	
Loans	  	Current	 	  	Non-current	 	  	Current	 	  	Non-current	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Bank loans	  	 	666,692,985	  	  	 	553,401,275	  	  	 	156,345,921	  	  	 	645,878,724	  	
Bond debt	  	 	18,330,658	  	  	 	1,125,547,339	  	  	 	24,531,922	  	  	 	1,141,130,894	  	
Other loans	  	 	5,405,927	  	  	 	22,573,726	  	  	 	4,571,948	  	  	 	16,372,497	  	
Time deposits	  	 	115,920,468	  	  	 	50,652,252	  	  	 	142,602,017	  	  	 	—  	  	
Term savings accounts	  	 	1,038,512	  	  	 	—  	  	  	 	1,033,220	  	  	 	—  	  	
Letters of credit	  	 	—  	  	  	 	10,509,317	  	  	 	—  	  	  	 	10,849,475	  	
Deposits and other demand deposits	  	 	2,819,487	  	  	 	—  	  	  	 	2,510,178	  	  	 	—  	  	
Debt purchase Bretas-Prezunic	  	 	20,516,563	  	  	 	108,070,199	  	  	 	—  	  	  	 	57,126,496	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Loans	  	 	830,724,600	  	  	 	1,870,754,108	  	  	 	331,595,206	  	  	 	1,871,358,086	  	

																	
Financial liabilities at fair value
through profit or loss	  	Balance as of 06/30/2012	 	  	Balance as of 12/31/2011	 	
	  	Current	 	  	Non-current	 	  	Current	 	  	Non-current	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Other financial liabilities (Non-hedging derivatives)	  	 	4,101,960	  	  	 	—  	  	  	 	5,150,270	  	  	 	—  	  	
					
Other financial liabilities (Hedging derivatives)	  	 	1,201,341	  	  	 	4,339,662	  	  	 	1,121,549	  	  	 	1,592,922	  	
Other financial liabilities option(*)	  	 	—  	  	  	 	—  	  	  	 	240,955,817	  	  	 	—  	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total financial liabilities	  	 	5,303,301	  	  	 	4,339,662	  	  	 	247,227,636	  	  	 	1,592,922	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	836,027,901	  	  	 	1,875,093,770	  	  	 	578,822,842	  	  	 	1,872,951,008	  	

(*)	Net present value of the redeemable amount.	
Bank loans correspond to loans from banks and financial institutions.
Bond debt corresponds to bonds placed in public securities markets or issued to the public in general.
Other financial liabilities includes derivative contracts (cross currency swaps) and the fair value of options contracts incorporated into the agreements between Cencosud S.A. and UBS A.G. London Branch “UBS.”
12.2 Restrictions.
Loan agreements and outstanding bonds of the Company contain a number of covenants requiring compliance with certain financial ratios and other tests. The most restrictive financial covenants under these loan agreements and bonds require maintenance of:
 
-	A ratio of consolidated net financial debt to consolidated net worth not exceeding 1.2 to 1;	
 
-	A ratio of consolidated net financial debt to EBITDA (as defined in the relevant credit agreements) for the most recent four consecutive fiscal quarters prior to each report date of less than 4.25 to 1;	
 
-	A ratio of EBITDA (as defined in the relevant credit agreements) for the most recent four consecutive fiscal quarters to consolidated financial expense prior to each report date of at least 3.0 to 1;	
 
-	Unencumbered assets in an amount equal to at least 120% of total outstanding liabilities;	
 
-	Minimum consolidated assets of at least UF50.5 million; and	
 
-	Minimum consolidated net worth of at least UF28.0 million.	
As of June 30, 2012 and December 31, 2011 the Company was in compliance with the aforementioned financial debt covenants.
 
F-26

12.3 Short term facilities
In order to finance the acquisition of Prezunic, on January 2, 2012, the Company entered into a Ch$127.73 billion short-term facility with Banco Santander Chile, as lender (“Santander Short-Term Loan”).
The Santander Short-Term Loan matures on December 28, 2012, and has an annual interest rate equal to the Tasa Bancaria (the Banking Interest Rate, or “TAB”), established by the Asociación de Bancos e Instituciones Financieras (the Association of Banks and Financial Institutions, or “ABIF”), plus 0.4%. On August 2, 2012, the company repaid the total of this facility.
On March 13, 2012, the Company entered into a short-term facility for approximately U.S.$200 million with an affiliate of Banco Bilbao Vizcaya Argentaria, S.A., as lender, to finance our investing activities, including capital expenditures, and to refinance certain short-term liabilities, including repayment of overdraft lines (“BBVA Short-Term Loan”). The BBVA Short-Term Loan bears interest at an annual rate of the Tasa Cámara, an indexed interest rate established by ABIF, plus 1.86%, and has a maturity date of March 13, 2013. On July 27,2012 the Company paid U.S.$200 million of this short term facility.
On April 27, 2012, the Company entered into a U.S.$750 million committed credit facility with J.P. Morgan Chase National Association, an affiliate of J.P. Morgan Securities LLC (“J.P. Morgan”), Morgan Stanley Bank, N.A., an affiliate of Morgan Stanley & Co. LLC (“Morgan Stanley”), The Bank of Tokyo—Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank Ltd., as lenders, (the “J.P. Morgan Credit Facility”) in order to finance the Company´s short-term funding requirements, including capital expenditures, interest expense and tax obligations. As of May 7, 2012, amounts drawn under the J.P. Morgan Credit Facility totaled U.S.$250 million. The J.P. Morgan Credit Facility bears an interest rate of LIBOR, as adjusted for statutory reserve requirements for eurocurrency liabilities, plus a margin of 1.25% for the first six months, 1.50% for the following three months, and 1.75% thereafter. The J.P. Morgan Credit Facility matures on March 13, 2013. On August 2, 2012 the company repaid US$250 million.
Note 13—Provisions and other liabilities
13.1 Provisions
13.1.1 The composition of this item as of June 30, 2012 and December 31, 2011 is as follows:

Accruals and provision	  	Current	 	  	Non-current	 	
	  	As of	 	  	As of	 	
	  	06/30/2012	 	  	12/31/2011	 	  	06/30/2012	 	  	12/31/2011	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Legal provision	  	 	21,053,037	  	  	 	15,425,204	  	  	 	55,204,316	  	  	 	55,049,716	  	
Onerous contracts provision (*)	  	 	2,179,335	  	  	 	637,847	  	  	 	26,688,521	  	  	 	28,101,302	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	23,232,372	  	  	 	16,063,051	  	  	 	81,892,837	  	  	 	83,151,018	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
(*) As of June 30, 2012, the valuation measurement period for the Johnson´s acquisition remains unexpired, and therefore the Company has retrospectively adjusted the provisional amounts regarding onerous contracts recognized at the acquisition date.
13.2 Roll-forward of provisions:

Provision type	  	Legal claims	 	 	Onerous
contracts	 	 	Total	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Initial Balance 01/01/2012	  	 	70,474,920	  	 	 	28,739,149	  	 	 	99,214,069	  	
				
Movements in Provisions:	  				 				 				
Additional provisions	  	 	11,310,250	  	 	 	—  	  	 	 	11,310,250	  	
Increase (decrease) in existing provisions	  	 	2,551,429	  	 	 	(103,734	) 	 	 	2,447,695	  	
Acquisitions through business combinations	  	 	1,978,495	  	 	 	232,441	  	 	 	2,210,936	  	
Utilized	  	 	(3,444,401	) 	 	 	—  	  	 	 	(3,444,401	) 	
Not utilized	  	 	(38,328	) 	 	 	—  	  	 	 	(38,328	) 	
Increase (decrease) in foreign exchange rate	  	 	(6,575,012	) 	 	 	—  	  	 	 	(6,575,012	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Changes in provisions, total	  	 	5,782,433	  	 	 	128,707	  	 	 	5,911,140	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total provision, final balance as of 06/30/2012	  	 	76,257,353	  	 	 	28,867,856	  	 	 	105,125,209	  	

F-27

													
Provision type	  	Legal claims	 	 	Onerous
contracts	 	 	Total	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Initial Balance 01/01/2011	  	 	53,409,957	  	 	 	2,258,298	  	 	 	55,668,255	  	
				
Movements in Provisions:	  				 				 				
Additional provisions	  	 	9,643,074	  	 	 	—  	  	 	 	9,643,074	  	
Increase (decrease) in existing provisions	  	 	3,609,389	  	 	 	(571,322	) 	 	 	3,038,067	  	
Acquisitions through business combinations	  	 	8,811,324	  	 	 	27,052,173	  	 	 	35,863,497	  	
Utilized	  	 	(5,143,603	) 	 	 	—  	  	 	 	(5,143,603	) 	
Increase (decrease) in foreign exchange rate	  	 	144,779	  	 	 	—  	  	 	 	144,779	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Changes in provisions, total	  	 	17,064,963	  	 	 	26,480,851	  	 	 	43,545,814	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total provision, final balance as of 12/31/2011	  	 	70,474,920	  	 	 	28,739,149	  	 	 	99,214,069	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
The onerous contracts balances have been retrospectively modified to adjust the provisional amounts recognized at Johnson’s acquisition date (see Note 9).
 
F-28

Note 14—Equity
14.1 Paid-in capital
As of June 31, 2012, the authorized, subscribed and paid-in capital amounts to ThCh$1,256,017,686.
14.2 Subscribed and paid shares
At the extraordinary shareholders meeting held on March 1, 2012, the shareholders agreed to modify the agreement previously approved at the Cencosud S.A. shareholders meeting held on April 29, 2011, of a capital increase of the Company to be effected through the issuance of 270,000,000 shares. On March 1,2012, the shareholders also authorized the Board of Directors to offer a portion of these shares in the international capital markets and also authorized the Board of Directors to determine the issuance price of the shares. 27,000,000 of these shares were set aside for option compensations plans for executives.
The referential share price reported to the SVS (Superintendencia de Valores y Seguros) was ThCh$3,555.56. The final issue share price was ThCh$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), the rest of the 210,507,000 shares were issued in the local market in Chile.
As of June 30, 2012, 92,309,978 shares were subscribed and paid, and an amount of ThCh$328,213,255 was recorded as capital increase and ThCh$97,187,340 was recognized as under price (paid–in surplus).
As of June 30, 2012, the Company’s capital is represented by 2,356,413,193 shares without par value. As of June 30, 2012, 217,601,823 issued shares were pending of subscription and payment, of which 39,911,801 expired on April 25, 2012; 150,690,022 will expire on April 25th 2015; and 27,000,000 will expire on April 29th 2017.
14.3 Dividends
For the six-months period ended June 30th, 2012, the Company recognized a provision for dividends amounting to ThCh$16,656,945 (ThCh$34,132,598 for the same period of June 30,2011) in accordance with the Company’s dividend policy and Chilean Law.
At the ordinary shareholders meeting on April 24, 2012, shareholders approved the payment of a dividend with charge to year 2011 of Ch$23.52339 per share, or an aggregate amount of ThCh$53,259,383, payable on May 4, 2012.
14.4 Changes in ownership interest
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.
On June 29, 2012, the Company filed an official notice of an essential event, or “Hecho Esencial,” with the SVS, pursuant to Article 9 and second paragraph of Article 10 of Act number 18.045 of the Republic of Chile, and Section II of the General Rule No. 30 of the SVS, announcing the acquisition by the Company of 38.606% of the capital stock (the “Shares”) of Jumbo Retail Argentina S.A., a company incorporated under the laws of Argentina, from UBS A.G. London Branch, for an amount of US$483,583,333.00.
Note 15—Breakdown of significant results
The items by function from the Statements of Income by Function are described as follows in 15.1, 15.2 and 15.3.

 	  	For the six month period ended
June 30,	 	
Expenses by nature of income by function	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Cost of sales	  	 	3,139,475,073	  	  	 	2,520,167,339	  	
Distribution cost	  	 	9,562,131	  	  	 	6,790,090	  	
Administrative expenses	  	 	925,226,314	  	  	 	708,224,430	  	
Other expenses by function	  	 	75,789,479	  	  	 	66,302,680	  	
	  	 	 	 	  	 	 	 	
Total	  	 	4,150,052,997	  	  	 	3,301,484,539	  	
 
F-29

15.1 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:

 	  	For the six month period
ended June 30,	 	
Expenses by nature	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Cost of goods sold	  	 	3,028,764,410	  	  	 	2,435,119,748	  	
Other cost of sales	  	 	110,710,663	  	  	 	85,047,591	  	
Personnel expenses	  	 	559,947,656	  	  	 	419,253,380	  	
Depreciation and amortization	  	 	66,529,459	  	  	 	57,981,841	  	
Distribution cost	  	 	9,562,131	  	  	 	6,790,090	  	
Function costs and others	  	 	75,789,479	  	  	 	66,302,680	  	
Consumption or living expenses	  	 	51,711,170	  	  	 	40,739,309	  	
Cleaning	  	 	25,034,021	  	  	 	20,293,976	  	
Safety and security	  	 	25,494,315	  	  	 	19,879,479	  	
Maintenance	  	 	31,957,863	  	  	 	24,748,280	  	
Professional fees	  	 	21,704,568	  	  	 	14,808,172	  	
Bags for customers	  	 	14,599,093	  	  	 	13,093,873	  	
Credit card commission	  	 	38,407,775	  	  	 	29,313,381	  	
Other	  	 	89,840,394	  	  	 	68,112,739	  	
	  	 	 	 	  	 	 	 	
Total	  	 	4,150,052,997	  	  	 	3,301,484,539	  	
	  	 	 	 	  	 	 	 	
15.2 Personnel expenses
The following is a breakdown of personnel expenses for the following periods:

 	  	For the six month period
ended June 30,	 	
Personnel expenses	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Salaries	  	 	446,675,576	  	  	 	328,288,807	  	
Short-term employee benefits	  	 	100,837,776	  	  	 	83,589,211	  	
Termination benefits	  	 	12,434,304	  	  	 	7,375,362	  	
	  	 	 	 	  	 	 	 	
Total	  	 	559,947,656	  	  	 	419,253,380	  	
	  	 	 	 	  	 	 	 	
15.3 Other (losses) gains

 	  	For the six month period
ended June 30,	 	
 	  	2012	 	 	2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Properties sales	  	 	2,110,920	  	 	 	—  	  	
UBS Call / Put Option	  	 	(16,258,777	) 	 	 	(3,958,663	) 	
Other net (losses) gains	  	 	5,636,530	  	 	 	1,300,801	  	
	  	 	 	 	 	 	 	 	
Total	  	 	(8,511,327	) 	 	 	(2,657,862	) 	

F-30

15.4 Other operating income

 	  	For the six month period
ended June 31,	 	
 	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$	 	
Sell carton & wraps	  	 	1,550,699	  	  	 	2,858,729	  	
Recovery of fees	  	 	409,881	  	  	 	380,614	  	
Increase from revaluation of investment properties	  	 	39,159,740	  	  	 	20,362,428	  	
Other income	  	 	801,023	  	  	 	437,609	  	
	  	 	 	 	  	 	 	 	
Total	  	 	41,921,343	  	  	 	24,039,380	  	
	  	 	 	 	  	 	 	 	
15.5 Financial results
The following is the financial income detailed for the periods ended:

 	  	For the six month period
ended June 30,	 	
Financial results	  	2012	 	 	2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Financial income	  	 	4,688,276	  	 	 	5,913,419	  	
	  	 	 	 	 	 	 	 	
Financial income	  	 	4,688,276	  	 	 	5,913,419	  	
Bank loan expenses	  	 	(49,486,872	) 	 	 	(32,930,018	) 	
Bond debt expenses	  	 	(29,552,863	) 	 	 	(26,355,733	) 	
Interest on bank loans	  	 	(5,607,980	) 	 	 	(4,288,336	) 	
Valuation of financial derivatives, instruments	  	 	(13,366,155	) 	 	 	(5,709,357	) 	
	  	 	 	 	 	 	 	 	
Financial expenses	  	 	(98,013,870	) 	 	 	(69,283,444	) 	
Results from price level restatement Chile	  	 	(9,841,332	) 	 	 	(12,670,254	) 	
Results from price level restatement Brazil	  	 	(3,918,830	) 	 	 	(3,863,226	) 	
Results from price level restatement other	  	 	(268,469	) 	 	 	(243,287	) 	
	  	 	 	 	 	 	 	 	
Results from price level restatement	  	 	(14,028,631	) 	 	 	(16,776,767	) 	
Financial debt IFC-ABN Argentina	  	 	(2,394,291	) 	 	 	(2,501,479	) 	
Bond debt USA and Peru	  	 	1,638,630	  	 	 	(456,300	) 	
Financial debt Peru	  	 	(953,566	) 	 	 	1,003,258	  	
Other exchange rate difference	  	 	(897,340	) 	 	 	(2,618	) 	
	  	 	 	 	 	 	 	 	
Exchange rate difference	  	 	(2,606,567	) 	 	 	(1,957,139	) 	
	  	 	 	 	 	 	 	 	
Financial results total	  	 	(109,960,792	) 	 	 	(82,103,931	) 	
	  	 	 	 	 	 	 	 	
Note 16—Information by segment
The Company reports the information by segment according to 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.
16.1 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 basis 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 retail consumers.
The remaining minor activities, including primarly 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.”
 
F-31

16.2 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 six-month periods ended June 30, 2012 and 2011, is as follows:
Regional information, by segment

Consolidated statement of income for the six
month period ended June 30, 2012	  	Supermarkets	 	 	Shopping
Centers	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services	 	 	Support
services,
financing,
adjustments
and other	 	 	Consolidated
total	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Revenues from ordinary activities	  	 	3,236,209,791	  	 	 	69,542,623	  	 	 	513,733,625	  	 	 	395,875,316	  	 	 	144,122,196	  	 	 	7,209,874	  	 	 	4,366,693,425	  	
Cost of sales	  	 	(2,435,889,266	) 	 	 	(10,105,189	) 	 	 	(352,411,703	) 	 	 	(285,795,120	) 	 	 	(53,954,570	) 	 	 	(1,319,225	) 	 	 	(3,139,475,073	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	800,320,525	  	 	 	59,437,434	  	 	 	161,321,922	  	 	 	110,080,196	  	 	 	90,167,626	  	 	 	5,890,649	  	 	 	1,227,218,352	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other revenues by function	  	 	2,373,972	  	 	 	39,198,138	  	 	 	103,656	  	 	 	184,227	  	 	 	55,631	  	 	 	5,719	  	 	 	41,921,343	  	
Sales, general and administrative expenses	  	 	(669,625,359	) 	 	 	(13,317,251	) 	 	 	(131,143,908	) 	 	 	(106,184,180	) 	 	 	(51,243,407	) 	 	 	(39,063,819	) 	 	 	(1,010,577,924	) 	
Financial expenses and income, net	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(93,325,594	) 	 	 	(93,325,594	) 	
Participation in profit or loss of equity method associates	  	 	67,860	  	 	 	2,173,072	  	 	 	—  	  	 	 	—  	  	 	 	(974	) 	 	 	—  	  	 	 	2,239,958	  	
Exchange differences	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(2,606,567	) 	 	 	(2,606,567	) 	
Losses from indexation	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(14,028,631	) 	 	 	(14,028,631	) 	
Other earnings, net	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(8,511,327	) 	 	 	(8,511,327	) 	
Income tax	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(48,751,871	) 	 	 	(48,751,871	) 	
Comprehensive income and expenses from non-controlling interests	  				 				 				 				 				 	 	(2,995,352	) 	 	 	(2,995,352	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit attributable to controlling shareholders	  	 	133,136,998	  	 	 	87,491,393	  	 	 	30,281,670	  	 	 	4,080,243	  	 	 	38,978,876	  	 	 	(203,386,793	) 	 	 	90,582,387	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	40,711,441	  	 	 	952,272	  	 	 	8,506,017	  	 	 	13,224,727	  	 	 	1,549,357	  	 	 	1,585,645	  	 	 	66,529,459	  	

For the six month period ended June 30, 2011	  				 				 				 				 				 				 				
Revenues from ordinary activities	  	 	2,587,947,026	  	 	 	60,469,930	  	 	 	442,989,911	  	 	 	309,183,533	  	 	 	138,212,502	  	 	 	7,045,090	  	 	 	3,545,847,992	  	
Cost of sales	  	 	(1,946,946,132	) 	 	 	(8,676,882	) 	 	 	(305,693,595	) 	 	 	(220,254,077	) 	 	 	(35,609,911	) 	 	 	(2,986,742	) 	 	 	(2,520,167,339	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	641,000,894	  	 	 	51,793,048	  	 	 	137,296,316	  	 	 	88,929,456	  	 	 	102,602,591	  	 	 	4,058,348	  	 	 	1,025,680,653	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other revenues by function	  	 	3,510,642	  	 	 	20,419,610	  	 	 	70,849	  	 	 	4,790	  	 	 	20,075	  	 	 	13,414	  	 	 	24,039,380	  	
Sales, general and administrative expenses	  	 	(507,721,102	) 	 	 	(9,727,101	) 	 	 	(109,548,300	) 	 	 	(75,600,139	) 	 	 	(45,300,688	) 	 	 	(33,419,870	) 	 	 	(781,317,200	) 	
Financial expenses and income, net	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(63,370,025	) 	 	 	(63,370,025	) 	
Participation in profit or loss of equity method associates	  	 	(3,455	) 	 	 	1,693,898	  	 	 	—  	  	 	 	—  	  	 	 	(1,114	) 	 	 	—  	  	 	 	1,689,329	  	
Exchange differences	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,957,139	) 	 	 	(1,957,139	) 	
Losses from indexation	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(16,776,767	) 	 	 	(16,776,767	) 	
Other earnings, net	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(2,657,862	) 	 	 	(2,657,862	) 	
Income tax	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(52,098,320	) 	 	 	(52,098,320	) 	
Comprehensive income and expenses from non-controlling interests	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(5,907,345	) 	 	 	(5,907,345	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Profit attributable to controlling shareholders	  	 	136,786,979	  	 	 	64,179,455	  	 	 	27,818,865	  	 	 	13,334,107	  	 	 	57,320,864	  	 	 	(172,115,566	) 	 	 	127,324,704	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	36,498,192	  	 	 	1,138,581	  	 	 	8,268,651	  	 	 	8,401,852	  	 	 	1,515,571	  	 	 	2,158,994	  	 	 	57,981,841	  	

F-32

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.
16.3 Gross margin by country and segment
Gross margin by country and segment

For the six month period
ended June 30, 2012	  	Total	 	 	Shopping
Supermarkets	 	 	Home Centers	 	 	Department
Improvement	 	 	Financial
Services	 	 	Support services,
Financing,
adjustments
services	 	 	Consolidated and
other	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Chile	  				 				 				 				 				 				 				
Ordinary income, total	  	 	959,737,148	  	 	 	35,101,043	  	 	 	196,288,560	  	 	 	395,875,316	  	 	 	115,328,250	  	 	 	1,366,823	  	 	 	1,703,697,140	  	
Cost of sales	  	 	(732,072,325	) 	 	 	(2,395,408	) 	 	 	(144,899,585	) 	 	 	(285,795,120	) 	 	 	(43,919,108	) 	 	 	(228,123	) 	 	 	(1,209,309,669	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	227,664,823	  	 	 	32,705,635	  	 	 	51,388,975	  	 	 	110,080,196	  	 	 	71,409,142	  	 	 	1,138,700	  	 	 	494,387,471	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Argentina	  				 				 				 				 				 				 				
Ordinary income, total	  	 	861,579,280	  	 	 	31,051,820	  	 	 	296,064,965	  	 	 	—  	  	 	 	21,143,433	  	 	 	5,204,168	  	 	 	1,215,043,666	  	
Cost of sales	  	 	(605,678,292	) 	 	 	(7,198,051	) 	 	 	(191,675,563	) 	 	 	—  	  	 	 	(5,254,449	) 	 	 	(1,035,163	) 	 	 	(810,841,518	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	255,900,988	  	 	 	23,853,769	  	 	 	104,389,402	  	 	 	—  	  	 	 	15,888,984	  	 	 	4,169,005	  	 	 	404,202,148	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Brazil	  				 				 				 				 				 				 				
Ordinary income, total	  	 	1,076,113,325	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	2,350,261	  	 	 	—  	  	 	 	1,078,463,586	  	
Cost of sales	  	 	(841,175,247	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(841,175,247	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	234,938,078	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	2,350,261	  	 	 	—  	  	 	 	237,288,339	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peru	  				 				 				 				 				 				 				
Ordinary income, total	  	 	338,780,040	  	 	 	3,389,761	  	 	 	—  	  	 	 	—  	  	 	 	5,300,252	  	 	 	638,881	  	 	 	348,108,934	  	
Cost of sales	  	 	(256,963,401	) 	 	 	(511,730	) 	 	 	—  	  	 	 	—  	  	 	 	(4,781,013	) 	 	 	(55,940	) 	 	 	(262,312,084	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	81,816,639	  	 	 	2,878,031	  	 	 	—  	  	 	 	—  	  	 	 	519,239	  	 	 	582,941	  	 	 	85,796,850	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Colombia	  				 				 				 				 				 				 				
Ordinary income, total	  	 	—  	  	 	 	—  	  	 	 	21,380,099	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	21,380,099	  	
Cost of sales	  	 	—  	  	 	 	—  	  	 	 	(15,836,555	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(15,836,555	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	—  	  	 	 	—  	  	 	 	5,543,544	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	5,543,544	  	

F-33

Gross margin by country and segment

For the three month period ended June 30,2011	  	Supermarkets	 	 	Shopping
Centers	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services	 	 	Support
services,
financing,
adjustments
and other	 	 	Consolidated
total	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
								
Chile	  				 				 				 				 				 				 				
Ordinary income, total	  	 	844,482,404	  	 	 	30,471,777	  	 	 	185,294,173	  	 	 	309,183,533	  	 	 	116,296,441	  	 	 	2,487,717	  	 	 	1,488,216,045	  	
Cost of sales	  	 	(645,635,264	) 	 	 	(2,066,222	) 	 	 	(136,028,652	) 	 	 	(220,254,077	) 	 	 	(28,787,960	) 	 	 	(1,150,213	) 	 	 	(1,033,922,388	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	198,847,140	  	 	 	28,405,555	  	 	 	49,265,521	  	 	 	88,929,456	  	 	 	87,508,481	  	 	 	1,337,504	  	 	 	454,293,657	  	

Argentina	  				 				 				 				 				 				 				
Ordinary income, total	  	 	719,413,793	  	 	 	27,365,629	  	 	 	239,298,676	  	 	 	—  	  	 	 	15,650,978	  	 	 	3,124,099	  	 	 	1,004,853,175	  	
Cost of sales	  	 	(512,280,735	) 	 	 	(6,243,517	) 	 	 	(156,410,074	) 	 	 	—  	  	 	 	(5,050,570	) 	 	 	(1,313,951	) 	 	 	(681,298,847	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	207,133,058	  	 	 	21,122,112	  	 	 	82,888,602	  	 	 	—  	  	 	 	10,600,408	  	 	 	1,810,148	  	 	 	323,554,328	  	

Brazil	  				 				 				 				 				 				 				
Ordinary income, total	  	 	743,468,452	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3,730,576	  	 	 	—  	  	 	 	747,199,028	  	
Cost of sales	  	 	(577,686,066	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(577,686,066	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	165,782,386	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3,730,576	  	 	 	—  	  	 	 	169,512,962	  	

Peru	  				 				 				 				 				 				 				
Ordinary income, total	  	 	280,582,376	  	 	 	2,632,523	  	 	 	—  	  	 	 	—  	  	 	 	2,534,507	  	 	 	1,433,276	  	 	 	287,182,682	  	
Cost of sales	  	 	(211,344,066	) 	 	 	(367,143	) 	 	 	—  	  	 	 	—  	  	 	 	(1,771,381	) 	 	 	(522,579	) 	 	 	(214,005,169	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  	 	69,238,310	  	 	 	2,265,380	  	 	 	—  	  	 	 	—  	  	 	 	763,126	  	 	 	910,697	  	 	 	73,177,513	  	

Colombia	  				 				 				 				 				 				 				
Ordinary income, total	  	 	—  	  	 	 	—  	  	 	 	18,397,062	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	18,397,062	  	
Cost of sales	  	 	—  	  	 	 	—  	  	 	 	(13,254,869	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(13,254,869	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	  				 				 	 	5,142,193	  	 				 				 				 	 	5,142,193	  	

F-34

16.4 Regional information by segment: Non-current assets and current assets
Regional information by segment

Non-current assets at June 30, 2012	  	Supermarkets	 	  	Shopping
Centers	 	  	Home
Improvement	 	  	Department
Stores	 	  	Financial
Services	 	  	Support services,
financing,
adjustments and
other	 	  	Consolidated
total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Other financial assets, non-current	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	37,194,097	  	  	 	37,194,097	  	
Other non-financial assets, non-current	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	34,862,595	  	  	 	34,862,595	  	
Trade receivables and other receivables, non-current	  	 	9,307,021	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	141,105,490	  	  	 	2,049,079	  	  	 	152,461,590	  	
Equity method investments	  	 	923,671	  	  	 	38,731,203	  	  	 	—  	  	  	 	—  	  	  	 	11,707	  	  	 	—  	  	  	 	39,666,581	  	
Intangible assets other than goodwill	  	 	137,552,589	  	  	 	—  	  	  	 	—  	  	  	 	136,658,900	  	  	 	205,608,697	  	  	 	58,525,798	  	  	 	538,345,984	  	
Goodwill	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	1,111,140,394	  	  	 	1,111,140,394	  	
Property, plant and equipment	  	 	1,431,313,025	  	  	 	203,111,724	  	  	 	364,717,403	  	  	 	286,941,033	  	  	 	7,674,276	  	  	 	51,642,592	  	  	 	2,345,400,053	  	
Investment property	  	 	—  	  	  	 	1,398,312,048	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	1,398,312,048	  	
Income tax assets, non-current	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	9,359,417	  	  	 	9,359,417	  	
Deferred income tax assets	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	170,482,287	  	  	 	170,482,287	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total non-current assets	  	 	1,579,096,306	  	  	 	1,640,154,975	  	  	 	364,717,403	  	  	 	423,599,933	  	  	 	354,400,170	  	  	 	1,475,256,259	  	  	 	5,837,225,046	  	

F-35

Regional information by segment

Non-current assets at
December 31, 2011	  	Supermarkets	 	  	Shopping
Centers	 	  	Home
Improvement	 	  	Department
Stores	 	  	Financial
Services	 	  	Support services,
financing,
adjustments and
other	 	  	Consolidated
total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Other financial assets, non-current	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	46,979,614	  	  	 	46,979,614	  	
Other non-financial assets, non-current	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	35,051,959	  	  	 	35,051,959	  	
Trade receivables and other receivables, non-current	  	 	32,932,917	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	158,487,608	  	  	 	3,022,990	  	  	 	194,443,515	  	
Equity method investments	  	 	920,899	  	  	 	37,897,834	  	  	 	—  	  	  	 	—  	  	  	 	11,707	  	  	 	—  	  	  	 	38,830,440	  	
Intangible assets other than goodwill	  	 	148,458,304	  	  	 	—  	  	  	 	—  	  	  	 	136,658,900	  	  	 	205,608,697	  	  	 	36,032,274	  	  	 	526,758,175	  	
Goodwill	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	1,001,778,510	  	  	 	1,001,778,510	  	
Property, plant and equipment	  	 	1,354,465,551	  	  	 	207,931,976	  	  	 	363,238,824	  	  	 	288,756,624	  	  	 	6,103,646	  	  	 	39,792,569	  	  	 	2,260,289,190	  	
Investment property	  	 	—  	  	  	 	1,310,143,075	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	1,310,143,075	  	
Deferred income tax assets	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	154,163,285	  	  	 	154,163,285	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total non-current assets	  	 	1,536,777,671	  	  	 	1,555,972,885	  	  	 	363,238,824	  	  	 	425,415,524	  	  	 	370,211,658	  	  	 	1,316,821,201	  	  	 	5,568,437,763	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Regional information by segment

Current assets at
June 30, 2012	  	Supermarkets	 	  	Shopping
Centers	 	  	Home
Improvement	 	  	Department
Stores	 	  	Financial
Services	 	  	Support services,
financing,
adjustments and
other	 	  	Consolidated
total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Trade Receivables and other receivables	  	 	277,823,916	  	  	 	30,061,928	  	  	 	47,223,945	  	  	 	18,707,910	  	  	 	507,185,271	  	  	 	2,588,742	  	  	 	883,591,712	  	
Inventory	  	 	492,890,179	  	  	 	—  	  	  	 	187,583,159	  	  	 	145,133,116	  	  	 	—  	  	  	 	—  	  	  	 	825,606,454	  	
Trade payables and other payables, current	  	 	911,226,729	  	  	 	41,010,110	  	  	 	206,372,326	  	  	 	169,906,176	  	  	 	49,328,438	  	  	 	13,816,631	  	  	 	1,391,660,410	  	
Regional information by segment
 
F-36

																													
Current assets at
December 31, 2011	  	Supermarkets	 	  	Shopping
Centers	 	  	Home
Improvement	 	  	Department
Stores	 	  	Financial
Services	 	  	Support services,
financing,
adjustments and
other	 	  	Consolidated
total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Trade Receivables and other receivables	  	 	289,205,147	  	  	 	31,156,863	  	  	 	62,309,456	  	  	 	23,911,890	  	  	 	523,409,453	  	  	 	387,898	  	  	 	930,380,707	  	
Inventory	  	 	445,338,661	  	  	 	—  	  	  	 	191,170,085	  	  	 	132,963,705	  	  	 	—  	  	  	 	—  	  	  	 	769,472,451	  	
Trade payables and other payables, current	  	 	991,539,080	  	  	 	47,328,180	  	  	 	216,583,939	  	  	 	235,398,878	  	  	 	51,072,581	  	  	 	8,898,061	  	  	 	1,550,820,719	  	
16.5 Information by country, assets and liabilities
Assets and liabilities by country

At June 30, 2012	  	Chile	 	  	Argentina	 	  	Brazil	 	  	Peru	 	  	Colombia	 	  	Consolidated
total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Total assets	  	 	4,121,125,820	  	  	 	1,324,166,962	  	  	 	1,381,146,068	  	  	 	810,701,738	  	  	 	96,544,916	  	  	 	7,733,685,504	  	
Total liabilities	  	 	3,091,737,317	  	  	 	729,568,897	  	  	 	599,564,665	  	  	 	315,749,955	  	  	 	16,742,316	  	  	 	4,753,363,150	  	

At December 31, 2011	  	Chile	 	  	Argentina	 	  	Brazil	 	  	Peru	 	  	Colombia	 	  	total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Total assets	  	 	4,285,750,317	  	  	 	1,373,378,310	  	  	 	1,107,790,625	  	  	 	801,584,506	  	  	 	86,335,385	  	  	 	7,654,839,143	  	
Total liabilities	  	 	3,140,781,877	  	  	 	769,041,760	  	  	 	459,793,950	  	  	 	311,404,769	  	  	 	9,832,993	  	  	 	4,690,855,349	  	
Long lived assets by country

At June 30, 2012	  	Chile	 	  	Argentina	 	  	Brazil	 	  	Peru	 	  	Colombia	 	  	total	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Other non-financial assets	  	 	28,027,142	  	  	 	6,835,453	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	34,862,595	  	
Trade receivables and other receivables	  	 	132,907,636	  	  	 	10,394,494	  	  	 	7,768,703	  	  	 	1,390,757	  	  	 	—  	  	  	 	152,461,590	  	
Equity method investments	  	 	38,742,910	  	  	 	242,990	  	  	 	—  	  	  	 	680,681	  	  	 	—  	  	  	 	39,666,581	  	
Intangible assets other than goodwill	  	 	360,673,223	  	  	 	2,761,453	  	  	 	73,677,856	  	  	 	101,233,452	  	  	 	—  	  	  	 	538,345,984	  	
Goodwill	  	 	234,741,055	  	  	 	5,156,001	  	  	 	621,767,576	  	  	 	249,475,762	  	  	 	—  	  	  	 	1,111,140,394	  	
Property plant and equipment	  	 	1,200,058,797	  	  	 	497,672,908	  	  	 	297,491,423	  	  	 	294,380,084	  	  	 	55,796,841	  	  	 	2,345,400,053	  	
Investment property	  	 	1,022,536,521	  	  	 	264,792,295	  	  	 	—  	  	  	 	103,420,080	  	  	 	7,563,152	  	  	 	1,398,312,048	  	
Tax assets	  	 	7,972,220	  	  	 	665,728	  	  	 	—  	  	  	 	—  	  	  	 	721,469	  	  	 	9,359,417	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Long lived assets—Total	  	 	3,025,659,504	  	  	 	788,521,322	  	  	 	1,000,705,558	  	  	 	750,580,816	  	  	 	64,081,462	  	  	 	5,629,548,662	  	

F-37

																									
At December 31, 2011	  	Chile	 	  	Argentina	 	 	Brazil	 	  	Peru	 	  	Colombia	 	  	total	 	
 	  	ThCh$	 	  	ThCh$	 	 	ThCh$	 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Other non-financial assets	  	 	27,641,021	  	  	 	6,900,578	  	 	 	510,360	  	  	 	—  	  	  	 	—  	  	  	 	35,051,959	  	
Trade receivables and other receivables	  	 	176,412,417	  	  	 	12,085,175	  	 	 	4,485,902	  	  	 	1,460,021	  	  	 	—  	  	  	 	194,443,515	  	
Equity method investments	  	 	37,909,541	  	  	 	(14,578	) 	 	 	—  	  	  	 	935,477	  	  	 	—  	  	  	 	38,830,440	  	
Intangible assets other than goodwill	  	 	362,292,641	  	  	 	872,095	  	 	 	62,457,143	  	  	 	101,136,296	  	  	 	—  	  	  	 	526,758,175	  	
Goodwill	  	 	234,848,286	  	  	 	5,614,481	  	 	 	505,459,120	  	  	 	255,856,623	  	  	 	—  	  	  	 	1,001,778,510	  	
Property,Plant and Equipment	  	 	1,163,984,292	  	  	 	521,365,259	  	 	 	244,257,603	  	  	 	278,191,626	  	  	 	52,490,410	  	  	 	2,260,289,190	  	
Investment property	  	 	918,662,623	  	  	 	280,409,706	  	 	 	—  	  	  	 	103,780,746	  	  	 	7,290,000	  	  	 	1,310,143,075	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Long lived assets-Total	  	 	2,921,750,821	  	  	 	827,232,716	  	 	 	817,170,128	  	  	 	741,360,789	  	  	 	59,780,410	  	  	 	5,367,294,864	  	
	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
16.6 Cash Flow by Segment

Current assets at June 30, 2012	  	Supermarkets	 	 	Shopping
Centers	 	 	Home
Improvement	 	 	Department
Stores	 	 	Financial
Services	 	 	Support services,
financing,
adjustments and
other	 	 	Consolidated
total	 	
 	  	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	 	ThCh$	 	
Cash flow from operating activities	  	 	46,953,388	  	 	 	61,878,299	  	 	 	6,804,859	  	 	 	23,782,626	  	 	 	38,108,883	  	 	 	(33,527,836	) 	 	 	144,000,219	  	
Cash flow from operating activities	  	 	(519,622,143	) 	 	 	(105,209,586	) 	 	 	(18,810,285	) 	 	 	(26,532,321	) 	 	 	(3,369,958	) 	 	 	(12,763,462	) 	 	 	(679,016,752	) 	
Cash flow from operating activities	  	 	425,266,381	  	 	 	47,630,167	  	 	 	12,186,202	  	 	 	11,601,729	  	 	 	(41,786,135	) 	 	 	48,141,341	  	 	 	495,748,682	  	
 
F-38

16.7 Regional Information, including intersegments is as follows:

 	  	For the six month period ended June 30, 2012	 	
Regional information, by segment	  	Total segment
revenue	 	  	Inter-segment
revenue	 	  	Revenue from
external customers	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Supermarkets	  	 	3,236,209,791	  	  	 	—  	  	  	 	3,236,209,791	  	
Shopping	  	 	113,087,835	  	  	 	43,545,212	  	  	 	69,542,623	  	
Home Improvement	  	 	517,599,270	  	  	 	3,865,645	  	  	 	513,733,625	  	
Department stores	  	 	395,875,316	  	  	 	—  	  	  	 	395,875,316	  	
Financial Services	  	 	144,122,196	  	  	 	—  	  	  	 	144,122,196	  	
Others	  	 	7,209,874	  	  	 	—  	  	  	 	7,209,874	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	4,414,104,282	  	  	 	47,410,857	  	  	 	4,366,693,425	  	

													
 	  	For the six month period ended June 30, 2011	 	
Regional information, by segment	  	Total segment
revenue	 	  	Inter-segment
revenue	 	  	Revenue from
external customers	 	
 	  	ThCh$	 	  	ThCh$	 	  	ThCh$	 	
Supermarkets	  	 	2,587,947,026	  	  	 	—  	  	  	 	2,587,947,026	  	
Shopping	  	 	98,066,016	  	  	 	37,596,086	  	  	 	60,469,930	  	
Home Improvement	  	 	446,205,764	  	  	 	3,215,853	  	  	 	442,989,911	  	
Department stores	  	 	309,183,533	  	  	 	—  	  	  	 	309,183,533	  	
Financial Services	  	 	138,212,502	  	  	 	—  	  	  	 	138,212,502	  	
Others	  	 	7,045,090	  	  	 	—  	  	  	 	7,045,090	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	3,586,659,931	  	  	 	40,811,939	  	  	 	3,545,847,992	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Note 17—Restrictions, contingencies, legal proceedings and other matters
 
-	The subsidiary Cencosud S.A. (Argentina) guaranteed deposits received from concessionaires with rights over real state. The pledged assets are mortgaged real estate assets as of June 30,, 2012 and as of December 31, 2011 of ThCh$3,968,966 and ThCh$4,194,354, respectively.	
 
-	In December 2006, the National Consumer Service (SERNAC) filed a class action suit before the Courts of Justice against Cencosud Administradora de Tarjetas S.A., which was notified of the suit in January 2007. The court of first instance court issued its decision on December 31, 2010, ruling in the plaintiff’s favor and directing the defendant to return the excess money charged. The court accepted the Company’s statute of limitations claim only with respect to charges made before December 7, 2006; the court directed the defendant to pay each affected consumer one monthly tax unit and to pay the government a fine of 50 monthly tax units. Cencosud Administradora de Tarjetas S.A. appealed the aforementioned ruling. On October 3, 2011, the Santiago Court of Appeals issued its ruling, upholding the statute of limitations argument and, as a result, overturned the ruling of the lower court. The case is currently pending before the Supreme Court of Chile.	
 
-	The subsidiaries of Cencosud S.A. in Chile are involved in lawsuits and litigation that are pending as of period end. The amounts of these claims are covered by a civil liability insurance policy.	
 
-	A civil lawsuit was filed against the indirectly owned subsidiary GBarbosa Comercial (Brazil) by the Public Employees Union in supermarkets in the State of Sergipe in Brazil, which is awaiting an initial court 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 a separate decision issued through a public civil claim, which annulled a bank of hours from May 2007 to April 2009.	
 
F-39

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, and the absence of sufficient information.
 
-	A class action suit was also filed against the indirectly owned subsidiary G Barbosa Comercial (Brazil) filed by “The Retail and Service Establishment Employees Union, Paulo Afonso and the Region,” based on the alleged violation of a clause in the Collective Bargaining Agreement that prohibits stores in this region from operating on Sundays after 1:00 pm. The request for payment of fines to the union has been confirmed in the first and second instance rulings and is awaiting decision on an appeal.	
There is no evidence that could support a reasonable estimate of the amount in question, given the extreme difficulty of determining the number of employees allegedly affected by the work schedule at that time.
 
-	Cencosud Administradora de Tarjetas S.A. has filed a lawsuit against the Company Mis Cuentas. Com S.A.related to the non-delivery of ThCh$1,212,175 in connection with the collection of payments from credit cards issued by Cencosud, through the internet portal, Mis cuentas.Com S.A.	
Contingencies and legal proceedings disclosed above are deemed to be of a remote outcome.
Note 18—Stock options
As of June 30, 2012, 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	 	Stock options granted to key executives	
Nature of the agreement	 	Incentive plan of permanence - Stock	 	Incentive plan of performance - Stock	
Date issued	 	1/1/2010	 	1/1/2010	
Shares granted	 	8,392,143 shares	 	16,607,857 shares	
Exercise price	 	Ch$1,750	 	Ch$1,750	
Fair value at grant date	 	Ch$1,766.8	 	Ch$1,766.8	
Expected term (in years)	 	3.3	 	3.3	
Condition to stock options	 	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, as the case may be, without any interruption in his or her employment relationship.
 
b) From the date of signing of the employment contract and until the grant date of shares, the Executive has not committed any serious breach of his or her employment duties, as determined at the Company’s sole discretion.	 	The grant of these shares is subject to the condition precedent that EBITDA for the year ended December 31, 2012 (defined as the consolidated net income of Cencosud S.A. plus financial interest, depreciation, amortization and income taxes, excluding the variation of adjustment unit and change by revaluation of investment properties) increases 100% or more based on EBITDA for the year ended December 31, 2009 (equivalent to ThCh$ 403,210,000). EBITDA is calculated based only on the businesses that the Company has or operates as of signing date of the employment contract and excludes any acquisition (such as purchase, merger, or other similar transaction) made by the Company.	
			
Payment	 	Cash	 	Cash	
Data entry options pricing model
used for stock options granted
during the period weighted average
price of shares used	 	Ch$1,766.8	 	Ch$1,766.8	
Exercise price	 	Ch$1,750	 	Ch$1,750	
Expected volatility	 	16.0%	 	16.0%	
Expected term (in years)	 	3.3	 	3.3	
Risk free interest	 	4.7%	 	4.7%	
Expected dividends	 	0%	 	0%	
Anticipated % of executives leaving
the plan (granted date)	 	10%	 	10%	
Fair value of the instrument at grant
date	 	Ch$331.87	 	Ch$331.87	
 
F-40

									
 	  	Number of shares	 	
Stock options granted to key executives	  	June 30,
2012	 	 	December 31,
2011	 	
 	  	ThCh$	 	 	ThCh$	 	
Outstanding as of the beginning of the period	  	 	22,717,830	  	 	 	23,412,830	  	
Granted during the period	  	 	13,251	  	 	 	735,000	  	
Forfeited during the period	  	 	(890,000	) 	 	 	(1,430,000	) 	
Outstanding at the end of the period	  	 	21,841,081	  	 	 	22,717,830	  	
Vested and expected to vest at the end of the period	  	 	21,841,081	  	 	 	22,717,830	  	
Eligible for exercise at the end of the period	  	 	262	  	 	 	271	  	
Stock options-Impact on Statement of Income by function for the six-month periods ended June 30, 2012 and 2011:

 	  	2012	 	  	2011	 	
 	  	ThCh$	 	  	ThCh$,	 	
Impact on the Statement of Income by function	  	 	1,148,782	  	  	 	1,148,782	  	
At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest. At June 30, 2012 and 2011, the Company expected 22,500,000 shares would vest.
When the options are exercised, the company decides if new compensation plans are issued with stock-option based payments.
The Company utilizes a valuation model that is based on a constant volatility assumption to value its employee share options. The fair value of each option grant has been estimated, as of the grant date, using the Black Scholes option pricing model.
Note 19—Subsequent events
As of the date of the issuance of these Unaudited Condensed Interim Consolidated Financial Statements an additional cash payment by ThCh$ 378,670,718 has been received, corresponding to the subscription and payment of the remaining 145,642,584 shares of the capital increase dated June 22 nd , 2012, so the total shares subscribed and paid to this date are 2,502,055,77 shares.
During the months of July an August the company has paid financial liabilities with Santander, BBVA and JP Morgan by ThCh$353,189,064.
On August 8, 2012, Cencosud S.A. announced that JPMorgan Securities LLC and UBS Securities LLC, as representatives of the underwriters in the equity offering that closed on June 26, 2012, agreed to waive the six-month lock-up restrictions on the offer and sale of shares of common stock of Cencosud by the company with respect to 5,047,438 shares.
As of the date of the issuance of these Unaudited Condensed Interim Consolidated Financial Statements, no additional subsequent events were identified that could affect their presentation.
 
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