Forus S.a. · BCS:FORUS

Forus — Investor Presentation (June 2018)

42 slides from Forus's investor presentation, June 2018

  1. Slide 1: Forus Corporate Presentation 2018

    2018

  2. Slide 2: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 2

  3. Slide 3: Key Metrics

    Key Metrics Brand Builder & Specialty Retailer 30 Brands and 21 different concepts of Retail stores 507 stores in Chile, Peru, Uruguay and Colombia 4,414 employees1 High level of Cash (MM US$ 129.2) and low level of Debt (Leverage of 0.14)2 CAGR of Sales of last 5 years of 11.2%. Market Cap of US$ 9

  4. Slide 4: Brand Builder in Latam

    Brand Builder in Latam # Stores 1Q’18 335 64 56 52 % of total Sales 1Q’18 83.6% 7.7% 7.0% 1.7% Sales 1Q’18* US$ 84.4 MM US$ 7.8 MM US$ 7.0 MM US$ 1.7 MM # Concept stores 1Q’18 17 11 9 4 Concept Stores Population 2017 18.4 MM 31.8 MM 3.5 MM 49.3 MM GDP (PPP)/capita 2017** US$ 24,537 US$ 13,334 US$ 22

  5. Slide 5: How we Build Brands

    How we Build Brands Multi Brand Store New Brands This new Brands have With important Concepts incorporated their own Retail Stores Growth ** 1980 +10 +9 1988 CAGR of Brands’ Revenues for the last 6 years (2010-2016)* 1993 12% 1991 +4 +13 1995 CAGR of Retail’s 2001 Revenues for the last 6 years (2010

  6. Slide 6: Portfolio of Brands

    Portfolio of 30 Brands Wolverine World Wide (USA) 7 Brands International Licensors 23 Brands Columbia Sportswear (USA) Nine West Holdings (USA) Brooks (USA) Patagonia (USA) Forus Own Brands VF Corporation (USA) Burton (USA) Skullcandy (USA) Dakine (USA) Vulcabras Azaleia (Brazil) Church’s (England)

  7. Slide 7: Forus History: Chilean Company with 38 years of experience

    Forus History: Chilean Company with 38 years of experience 1980 1982 1988 1990 1991 1992 1993 1995 1996 2001 2003 2005 2006 2007 2008 Brands New Alfonso Swett Footwear’s New Alfonso New Enter in Calpany New Forus is opened in Enter in Hush S. start with factory in Stores Swett S. Stores Uruguay acqu

  8. Slide 8: 2017 Sales per Brand Concept

    2017 Sales per Brand Concept Active Outdoor Fashion 8% 5% Casual 51% Outdoor 36% 8 % as for Consolidated figures.

  9. Slide 9: Brand Mix Adaptable to Market Demand

    Brand Mix Adaptable to Market Demand Accesories Accesories 8% 6% Apparel Sales per 18% Apparel 24% Categories Footwear Footwear 68% 76% 2005 2017 Fashion Active Outdoor 5% 8% Active Outdoor Fashion 7% 4% Casual 64% Casual Sales per 51% Outdoor Brand Concept Outdoor 36% 25% 9

  10. Slide 10: 21 Stores Concepts

    Broad Retail Portfolio * 21 Stores Concepts Multi-Brand 48%** Mono-Brand 52% ** 10 * Stores with e-commerce web sites. **As number of Chain of Stores 2017

  11. Slide 11: Forus Management and Directors Committee

    Forus Management CEO Board Sebastian Swett (29) Alfonso Swett S. (37) President Sub General Manager Marisol Cespedes (21) Alfonso Swett O. (24) Directors Retail Manager Heriberto Urzúa Sanchez (23) Corporate CFO Matias Topali (12) John Stevenson (23) Marisol Cespedes (21) Ricardo Swett Saavedra (18)

  12. Slide 12: Forus Corporate Structure

    Forus Corporate Structure FORUS S.A. Uruforus SA Peruforus SA Forus Colombia SAS LBC SAS Uruguay Peru Colombia Colombia 100% 100% 51% 49% 12

  13. Slide 13: Ownership Structure

    Ownership Structure December 2008 May 2018 Brokers Brokers Others Others 7,5% 3,6% 0,2% 0,6% Institutional Investors Institutional Investors 4,6% 13,8% Investment Funds 16,1% Investment Funds 14,2% Companies related to Costanera Costanera Costanera 64,6% Companies related to 63,0% 6,6% Costanera 5,1

  14. Slide 14: International Awards received

    Company Recognition – 33 International Awards received 4 5 10 5 3 4 1 Price Recieved in years: 2011 2012 2013 2014 2015 2016 2017 Hush Highest Revenues Growth Highest Revenues Growth Highest Revenues Growth Outstanding Sales Ken Goi Award Outstanding Sales Outstanding Sales Apparel & Accesories Acce

  15. Slide 15: Forus Social Responsibility

    Forus Social Responsibility Educational Institutions Support of Children in Sports Outdoor vulnerable & Environmental situations activities Employees Professional Development 15

  16. Slide 16: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 16

  17. Slide 17: Consolidated Income Statement

    Consolidated Income Statement MM Ch$ 1Q'18 1Q'17 Var % Revenues 60.826 61.356 -0,9% Gross Profit 32.733 32.817 -0,3% Gross Margin 53,8% 53,5% 0,3 SG&A Expenses (24.939) (24.330) 2,5% SG&A / Revenues (41,0%) (39,7%) (1,3) Operating Income 7.794 8.487 -8,2% Operating Margin 12,8% 13,8% (1,0) Other inc

  18. Slide 18: Consolidated Balance Sheets

    Consolidated Balance Sheets MM Ch$ Mar 18 Dec 17 MM Ch$ Mar 18 Dec 17 Cash and cash equivalents 3.164 4.365 Other financial liabilities, current 497 2.510 Other financial assets, current 74.789 75.422 Current trade and other current accounts payable 12.181 13.758 Other non-financial assets, current

  19. Slide 19: Forus SSS by Country

    Forus SSS by Country SSS Forus 2010 2011 2012 2013 2014 2015 2016 2017 Chile 10,1% 18,7% 8,3% 5,3% 5,3% -3,2% 3,6% 3,5% Colombia 9,4% 15,3% 8,0% 9,3% 8,7% 4,4% 0,5% -5,1% Peru 2,0% 20,7% 16,5% 4,2% -6,3% -7,5% 1,7% -2,4% 20% Uruguay 7,2% 20,3% 9,5% -8,0% 3,1% -3,5% 8,0% 6,1% Total 9,8% 18,9% 8,9% 4,

  20. Slide 20: Growing Sales - Forus Consolidated

    Growing Sales - Forus Consolidated 250.962 234.206 233.396 241.709 193.631 170.768 142.351 120.837 105.716 90.568 104.354 63.480 61.356 60.826 56.504 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18 Figures in million Chilean pesos. 20

  21. Slide 21: EBITDA - Forus Consolidated

    EBITDA - Forus Consolidated 26,5% 24,9% 24,9% 20,7% 21,2% 19,0% 18,3% 18,3% 17,4% 17,6% 16,3% 16,2% 16,1% 15,1% 14,7% 49.667 48.210 42.495 42.777 42.146 40.569 37.663 25.010 19.299 17.171 17.014 11.152 9.877 8.305 9.186 EBITDA Margin EBITDA (MM Ch$) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

  22. Slide 22: Net Income - Forus Consolidated

    Net Income - Forus Consolidated 20,0% 19,6% 18,4% 16,0% 15,7% 14,1% 11,1% 10,2% 11,1% 10,9% 10,6% 10,2% 9,4% 9,5% 7,6% 37.888 36.771 33.001 31.366 28.424 26.396 26.697 19.393 11.695 9.249 9.827 7.020 6.239 5.765 ROS 4.317 Net Income (MM Ch$) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201

  23. Slide 23: Number of Stores opened

    Stores Opening Rate 2011 2012 2013 2014 2015 2016 2017 Net Openings 27 43 84 64 17 10 6 Openings 36 48 93 74 26 28 28 Net Op. (5 years Average) 26 24 34 45 47 44 36 100 Number of Stores opened 90 80 70 60 URUGUAY 50 COLOMBIA 40 PERÚ 30 CHILE 20 10 0 23 2007 2008 2009 2010 2011 2012 2013 2014 2015 20

  24. Slide 24: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 24

  25. Slide 25: Ebitda Margin – Among the Most Efficient Worldwide

    0% 5% 10% 15% 20% 25% -5% LVMH AZALEIA/VULCABRAS LULULEMON * As of December of 2017 KERING (PPR) NEXT PLC INDITEX (ZARA) LIMITED BRANDS TRICOT FORUS POLO RALPH LAUREN VF CORPORATION NIKE H&M AMERICAN EAGLE GAP FALABELLA COLUMBIA MACY'S FOOT LOCKER HITES AMAZON ABERCROMBIE CALERES (Brown Shoe Co.) CR

  26. Slide 26: Great Sales Performance of Forus Chile throughout the Years

    Great Sales Performance of Forus Chile throughout the Years Chile's Average GDP Growth Forus Chile' Average Sales Growth Industry Average Retail Sales Growth 15,8% 14,1% 4,7x 3,0x 12,0% 3,5x 6,4% 5,3% 5,5% 3,0% 1,3% 1,8% 2006-2009 2010-2013 2014-2017 GDP information from International Monetary Fund,

  27. Slide 27: Ebitda Margin vs. Industry and Exchange rate

    Ebitda Ebitda Margin Margin vs.Industry above the Exchange in Chilerate Ebitda Margin vs. Exchange rate 30% 700 26,5% 24,9% 24,9% 25% 21,2% Ebitda Margin 20,7% Exchange Rate 600 20% 18,3% 18,3% 17,4% 16,3% 16,1% 15,1% 15% 500 10% 11,4% 11,1% 11,4% 10,5% 9,7% 9,6% 10,3% 9,5% 10,2% 9,7% 5% 8,0% 400 0%

  28. Slide 28: Sales per Square Meter vs. Chilean Industry

    Ebitda Margin Outperforming in Salesvs. perExchange square metersrate compare to Chilean Industry 1.3x 1.4x 1.5x 1.5x 1.4x 1.4x 1.4x 7.138 7.131 6.869 6.750 6.601 6.091 5.057 5.059 4.791 4.664 4.638 4.584 1.562 1.129 2012 2013 2014 2015 2016 2017 1Q18 Retail Players Avg.* Forus Chile * Falabella, Ce

  29. Slide 29: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 29

  30. Slide 30: 2018 Stores Opening Plan and Capex Evolution

    2018 Stores Opening Plan and Capex Evolution Capex 2018 Capex Evolution US$ 10 MM 120 Other (US$ MM) 20 Stores 93 Capex (US$ MM) 100 # Gross Stores Opened 74 80 13 Distribution Billabong & 60 Center in 48 7veinte 5 Acquisition 2 0 Chile 36 32 40 26 28 28 Chile Perú Colombia Uruguay 15 25 20 15 16 16

  31. Slide 31: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 31

  32. Slide 32: Forus' Pillar-based Strategy

    4 CONCEPTOS ESTRATEGICOS Forus’ 4 Pilar-based Strategy Crecimiento Integración Crecimiento Growth Integración Integration Innovación Innovación Innovation Cultura Cultura Culture Crecimiento Integración Innovación Cultura 32

  33. Slide 33: Core Competences

    Core Competences Focus on Efficiency Financial Retail Strength Excellence Recognized Profitable Brands Growth Quality Our People Customer Products Oriented 33

  34. Slide 34: Focus on our Customers Lifestyle-Trends

    Focus on our Customers Lifestyle-Trends 34

  35. Slide 35: How we will continue Growing

    How we will continue Growing Inorganic Growth Organic Growth International Expansion 35

  36. Slide 36: Stores per Mall per Country

    Stores per Mall per Country Forus’ Average Stores per Mall 2016 # Mall per million habitant1 323 4,0 3,7 4,4 3,8 2,0 Average 1,6 3.0 2,3 70 74 61 52 1,2 32 33 10 Chile Perú Colombia Uruguay Chile Perú Colombia Uruguay Cant. Mallswere # Malls en que weestamos are Tiendas Total #Totales stores Prom. A

  37. Slide 37: Quick Review of New Brands Incorporated

    Quick Review of New Brands Incorporated 2014 2015 2016 2017 Life Style Fashion Life Style & Sports Lifestyle Street-Sportswear Lifestyle & Street Fashion Outdoor & Casual Sports & Fitness Outdoor & Wellness fashion for In stores since A Brand from February 2014 February 2014 March 2016 February 2016

  38. Slide 38: E-Commerce

    E-Commerce Websites Social Network 4 3 1 1 3 2013 2014 2015 2016 2017 2018 38

  39. Slide 39: Agenda

    Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 39

  40. Slide 40: Chile Economic Outlook

    Chile Economic Outlook Confidences Index Economic Growth Forecast3 70 1 IMCE IPEC 2 60 54.4 4,2% 50 3,2% 3,2% 3,1% 40 51.2 1,9% 2,3% 1,6% 1,5% April-18 30 2013 2014 2015 2016 2017 2018E 2019E 2020E 2013 2014 2015 2016 2017 2018 Dynamism on Credits demand4 Unemployment5 12% Var. % Nominal Annual Cred

  41. Slide 41: Disclaimer

    Disclaimer This document is only informative, and part of the information collected in it contains projections about intentions, expectations or future predictions. All of them, except for those based on historical facts, are forward-looking, including, among others, those regarding the financial po

  42. Slide 42: FORUS Brands & Retail

    FORUS BRANDS & RETAIL

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