August 2019
Agenda
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
2
Agenda
Chile
82,1%
Uruguay
8,3%
Perú
7,6%
Colombia
2,0%
Footwear66%
Apparel
26%
Accesories 8%
COLOMBIA
PERU
CHILE URUGUAY
24 Store Concepts of retail chains
1As of June 30th, 2019, 2 Converted to USD using average LTM June 30, 2019 exchange rate of 673,1 CLP/USD. 3 Stock price ($1,435) and FX (711,9 CLP/USD) as of August 20th 2019,
Forus at a glance
Revenue per Subsidiary 2018 2014 RatiosRevenue per Category 2018
Brand Builder & Specialty Retailer
17,9%
Ratios 2018
341
67
53
62
31 Brandsin our portfolio
523 Storesin 4 countries 1
US$ 365 millionin Revenue LTM 2Q19 2
US$ 521 million in Market Cap3
32 e-Commerce SitesMono-brand & multi-brand
40 Int. Awardsfor Brand Building & Retail
Excellence (2011 – 2019)
CAGR sales +12%nominal 2005-2018
10,1% 10,3%11,6%
15,2%
ROA ROS ROE EBITDAMg
0
250
500
2007 2009 2011 2013 2015 2017 2Q19
#Stores per Country
Uruguay
Colombia
Peru
Chile
Solid Balance Sheet1: US$ 151 million in cash and Net financial debt/Ebitda of -1.3x.
# stores 2019
% of total Sales 2Q’19
Sales LTM 2Q’19
# store concepts 2Q’19*
# of websites*
# of brands 2Q’19*
StoreConcepts
* Figures include stores, websites and brands added after 2Q19, Sales figures converted to USD using average LTM June 30, 2019 exchange rate of 673,1 CLP/USD. Mn = million.
Snapshot by country
4
346
82,3%
US$ 298.8 Mn
20
19
29
67
7,2%
US$ 29,0 Mn
11
4
13
62
8,9%
US$ 30.3 Mn
10
6
15
53
1.6%
US$ 7.2 Mn
4
3
3
CHILE PERU URUGUAY COLOMBIA
ecommerce in Chile
Acquisitions:
Chile & Peru:
Chile:
New brand (apparel)
Peru & Uruguay:
Calpanyacquisition
The company is renamed Forus S.A.
New store concept
New store concept:
New store concept
New store concept
20172012
New store concept in Peru
New store concepts:
2011
New store concept:
1982
Alfonso Swett S. launches the company with the Hush Puppies brand in Chile. WWW has a 30% stake in the new company.
1995 1996 2001
Enters Uruguay
Alfonso Swett S. acquires WWW´s 30% stake.
New store concept:
1991
2009
The company builds a footwear factory in Chile.
1988 2003
2010
New distribution center in Chile
2013
New Brand&
Chain
JV with WWW in Colombia for the brands:
1993
2014
Acquisition of Hush Puppies Peru operation
Enters Colombia
Acquisition in Uruguay of:
Forus IPO
Enters Peru
Azaleia and Norsegacquisitions.
New stores in Chile
2006 2008
38 years growing with the Latin American consumer
New brand in Uruguay:
2016
1980 2007
Inorganic 1
1 Red i: cash payment. Blue i: WC.
New store concept in Peru
ecommerce in Uruguay
Ne
w
Bra
nd
s
1990 1992 2005
Ne
w
Bra
nd
s
2015
5
2018
New brands in Peru:
ecommerce in Peru & Colombia
New store concept:
New brand and store concept in Uruguay
New multi-brand ecommerce site in Chile
New brand and concept store in Chile, as well as large wholesale business and ecommerce (vans.cl).
2019
Brand building leadership
6
40 International
Awardswon by Forus’ Brand
Building & Retail Excellence (2011 – 2019)
Outstanding Performance in Sales Growth Accessories Category , Chile
Outstanding Performance in Sales GrowthAccessories Category , Peru
Bill Brown Achievement AwardIn recognition of Forus’ trajectory in the development and positioning of the CAT brand in Chile, Colombia and Uruguay.
3 INTERNATIONAL AWARDS RECEIVED SO FAR IN 2019
CPOCarlos Díaz (12)
Forus Uruguay CEOJuan Strauch (18)
Forus Colombia CEOPablo Muxi (5)*
Forus Peru CEOGonzalo Sotomayor (8)**
CEOSebastián Swett O. (30)
Head of Investor RelationsIsabel Darrigrandi (< 1)
BoardAlfonso Swett S. (39)
Chairman
Alfonso Swett O. (26)
Heriberto Urzúa S. (24)
Ricardo Swett S. (19)
Macarena Swett O. (< 1)
Francisco Gutierrez P. (9)
Catalina Cabello R. (< 1)
Experienced and professional management team
(x) Number of years at the Company. In the case of the Board of Directors, the number of years refers to the Director’s tenure as a board member. The Board of Directors reflects the election results as per the April 17, 2019 GSM. Independent directors in orange letters. * Mr. Muxi has been at Forus for a total of five years, one year as Colombia CEO. ** Mr. Sotomayor has been at Forus for eight years, three as Peru CEO.
7
CFOFrancisco Del Río (< 1)
Dir
ect
ors
COOMarisol Céspedes (22)
Committee to be
Brand Business Manager Lifestyle/Outdoor
Juan Pablo Dussaillant (19)
Brand Business Manager Outdoor/Active
Francisco Arrighi (5)
HR & Legal ManagerManuel Somarriva (11)
Retail ManagerMatias Topali (13)
IT ManagerSaul Palma (3)
Corporate Retail Real Estate ManagerClaudio Cabrera (16)
Logistics ManagerPatricio Ramírez (12)
Dir
ect
ors
’ C
om
mit
teeCatalina Cabello R. (President)
Heriberto Urzúa Sanchez
Ricardo Swett Saavedra
2018 sales per brand concept
8% as for Consolidated figures. Vans not included in 2018 figures.
Casual52%
Outdoor38%
Active Outdoor8%
Fashion2%
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
Agenda
9
Agenda
Ebitda margin – among the most profitable worldwide
10* As of December of 2018
0%
5%
10%
15%
20%
25%
30%
35%KE
RIN
G (
PPR
)
LULU
LEM
ON
LVM
H
AZA
LEIA
/VU
LCA
BR
AS
IND
ITEX
(ZA
RA
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TRIC
OT
AR
EZZO
(B
RA
SIL)
FOR
US
NIK
E
DEC
KER
S
LIM
ITED
BR
AN
DS
CO
LUM
BIA
FALA
BEL
LA
FAST
RET
AIL
ING
(U
NIQ
LO)
WO
LVER
INE
WW
INC
.
AM
ERIC
AN
EA
GLE
H&
M
GA
P
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T LO
CK
ER
CR
OC
S
LA P
OLA
R
HIT
ES
AB
ERC
RO
MB
IE
AD
RET
AIL
(A
BC
DIN
)
RIP
LEY
CO
RP
UN
DER
AR
MO
UR
ALM
AC
ENES
ÉX
ITO
(C
OLO
MB
IA)
CA
LER
ES (
Bro
wn
Sho
e C
o.)
CEN
CO
SUD
GEN
ESC
O
19,0% 18,3%16,3%
20,7%
26,5%24,9% 24,9%
21,2%
18,3% 17,4%16,2%
15,2%
10,5% 9,7%
7,6%
11,2% 10,7%
7,9%
10,3%
11,4% 9,4%10,5% 9,3%
9,7%
,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
800,0
0%
5%
10%
15%
20%
25%
30%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ebitda Margin vs. Exchange rate
FORUS Retail Players Average FX
Ebitda Margin vs. Exchange rate
Eb
itd
a M
arg
inE
xch
an
ge
Ra
te
Ebitda margin above the industry in Chile
• Retail Average: Falabella, Cencosud , Ripley and Hites. Exchange Rate: average annual CLP/USD. 11
3,3%
5,3%
1,9% 2,3%1,7%
1,3%
4,0%
14,1%
15,8%
14,3%
3,3%
4,2%3,6%
-1,1%
1,3%
12,0%
3,6%3,2%
6,9%
4,1%
-0,6%
2006-2009 2010-2013 2014 2015 2016 2017 2018
Var % PIB Forus Chile Sales Growth Industry Sales Growth
Forus Chile: solid revenue performance over time
4,3x
3,0x
2,5x
GDP information from International Monetary Fund, World Economic Outlook Database.“Industry” and “Retail Players Avg.” includes Chile Department Store Revenue and sales area for Falabella, Ripley, Cencosud and Hites.Figures in USD/Sqm, calculated using the observed dollar exchange rate (in USD/CLP) for December 31st, 2018: 695.7. 12
1.4x 1.5x 1.5x 1.5x 1.4x 1.4x 1.4x
Sales per square meterAverage Total Growth
4.190 4.152 4.087 4.1164.389 4.471
4.287
5.7776.124 6.303
5.9706.209 6.363
6.131
2012 2013 2014 2015 2016 2017 2018
Retail Players Avg.* Forus Chile
3,0x3,0x7,5x
3,0x1,5x 2,8x
-0,3x
GDP Growth
Agenda
13
Agenda
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
Agenda
14
Our DNA
Discipline
Customer Centric
Excellence
PassionEthics
Austerity
We aim to be leaders in specialty retail in footwear, apparel and accessories,both in Chile and abroad, by earning our customers’ preference every day.
We are brand builders
Multi brand store concepts
New brands added to portfolio
1988
1995
2006
1993
New mono- brand store concepts
With important Growth
Brand Revenue CAGR
(2010-2018)**
9.4%
2001
* Numbers represent the years between the arrival of the brand to the market until its first mono-brand store opening.
**Patagonia not included.
2013
+4+4
*1980
1991
1992
+13+22
+9+10
15
We have a portfolio of iconic & consumer-focused brands…
16
8 D
ev
elo
p B
ran
ds
16 N
ich
e B
ran
ds
Big
7
Wolverine World Wide
Columbia Sportswear
AB Group
Brooks
Patagonia
VF Corporation
Burton
Dakine
Vulcabras Azaleia
Church’s
Boardriders
24
Bra
nd
s
7 B
ran
ds
… based on solid, diversified partnerships.
17
LICENSORS BRANDS FORUS PROPRIETARY BRANDS
Aldo Group
Consumer-centric, omnichannel portfolio2
5 S
tore
Co
nce
pts
Mono-Brand
Multi-Brand 61%**
39% **
18*. Store chains with e-commerce web sites (Zapatos.cl and Zapatillas.cl are exclusively online stores). **As a % of total stores as of March 2019.
A robust digital strategy.
Social Media E-commerce Technology Business Intelligence
19
20
… which is growing fast
Start of Online Strategy
20
2013 201720102008
Web Sites Social Media E-commerce Omni-Channel
2013 2017 2018
2019
Scale & Customer Knowledge
Digital delivering triple digit topline growth (& profitable!)
+4.1 million likes & followers
Actively interacting with our Social Media
Forus # 2 in retail category in Chile in number of
Shares, Likes & Comments, according to Comscore (March 2019)
32 e-commerce siteswith strong growth and profitable
e-commercein 4 countries in the region
21YoY growth (%)
Revenues Conversion Rate
+70% +24%
2Q 2019 Traffic
+32%
9.9%e-commerce revenues as a %
of total retail (DTC) sales2Q19 CHILE
…and a truly omnichannel operation
“Stores operate as mini distribution centers”
Omnichannel strategy
130Stores using
Forus App
+60%Sales Growth YoY.
2,1%Conversion rate
(27% higher than last year’s Cyberday)
As of June 2019:
(+) Stores (+) Distribution Centers
CHILE CYBERDAY MAY ’ 19
Sustainable corporate practices
23
Educational institutions
Children in vulnerable situations
LEED Gold Certified
Corporate Head Quarters
Employee professional development
Educational institutions
Support of sports, outdoor &
environmental activities
24
Agenda
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
Consolidated Income Statement
25(*) Margin variations are in percentage points.
Ch$ million 2Q19 2Q18 Var % 6M19 6M18 Var %
Revenues 66,169 68,191 -3.0% 122,392 129,017 -5.1%
Gross Profit 37,234 40,080 -7.1% 66,758 72,813 -8.3%
Gross Margin 56.3% 58.8% (2.5) 54.5% 56.4% (1.9)
SG&A Expenses (26,841) (26,370) 1.8% (51,397) (51,309) 0.2%
SG&A / Revenues (40.6%) (38.7%) (1.9) (42.0%) (39.8%) (2.2)
Operating Income 10,393 13,710 -24.2% 15,361 21,504 -28.6%
Operating Margin 15.7% 20.1% (4.4) 12.6% 16.7% (4.1)
Other incomes / (Expenses) 26 62 -58.9% 10,991 49 22472.1%
Net Financial Income / (Cost) 1,648 (235) -801.1% 2,585 510 406.6%
Profit / (Loss) in Associates Companies (38) (91) -58.0% (121) (244) -50.3%
Exchange Rate Differentials 85 1,215 -93.0% (453) 905 -150.0%
Results of Indexation units 7 7 6.7% 3 (3) -220.6%
Others 204 (32) -734.1% 186 9 1965.0%
Non-Operating Income 1,931 926 108.5% 13,190 1,227 975.3%
Profit before income Tax 12,324 14,636 -15.8% 28,552 22,731 25.6%
Income Tax (3,339) (3,947) (8,048) (6,276)
Profit 8,985 10,690 -15.9% 20,503 16,454 24.6%
Profit Margin (%) 13.6% 15.7% (2.1) 16.8% 12.8% 4.0
Profit (loss) attributable to equity holders of parent 9,034 10,701 -15.6% 20,618 16,565 24.5%
Margin (%) 13.7% 15.7% (2.0) 16.8% 12.8% 4.0
Profit (loss) attributable to minority interest (49) (12) 314.2% (115) (111) 4.0%
EBITDA 15,129 15,086 0.3% 24,855 24,271 2.4%
EBITDA Margin 22.9% 22.1% 0.7 20.3% 18.8% 1.5
Consolidated Balance Sheet
26
Ch$ million Jun-19 Dec 18 Ch$ million Jun-19 Dec 18
Cash and cash equivalents 6,643 5,259 Other financial liabilities, current 14,291 2,005
Other financial assets, current 95,807 83,505 Current trade and other current accounts payable 9,920 13,599
Other non-financial assets, current 4,183 3,469 Current accounts payable to related companies 701 967
Trade and other account receivables 28,347 23,588 Other current Provisions 2,435 5,831
Accounts receivables from related companies 0 0 Current tax liabilities 1,718 -
Inventories 71,073 77,604 Current Provisions for employees benefits 5,568 5,886
Tax Assets, current - 2,692 Other non-financial liabilities, current 851 1,280
Total Current Assets 206,052 196,117 Total Current Liabilities 35,484 29,567
Other financial assets, Non-current - 25 Other non-current financial liabilities 38,998 1,625
Other non-financial assets, Non-current 2,375 2,589 Other non-current accounts payable - -
Fees receivables, Non-current 424 206 Deferred taxes liabilities - -
Investments in Associated 1,807 1,946 Other non-financial non-current liabilities - 6
Net intangibles assets 1,669 1,791 Total Non-Current Liabilities 38,998 1,631
Goodwill 5,426 5,426
Property, plant and equipments 91,240 41,331 TOTAL LIABILITIES 74,482 31,198
Deferred tax Assets 2,582 2,540
Total Non-Current Assets 105,524 55,854 Equity attributable to equity holders of the parent 236,351 219,906
Non-controlling interest 744 867
Total Equity 237,095 220,773
TOTAL ASSETS 311,577 251,970 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 311,577 251,970
81 91130 152 150
174 205246279
337 336348 361 357
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
6 10 13 17 14
28
41 4555 53
4738 38 37
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
7,6%11,1% 10,2% 11,1% 9,4%
16,0% 20,0%18,4% 19,6% 15,7% 14,1%10,9% 10,6% 10,3%
12 1625
2824
36
5461
69 7162 61 58 54
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Forus Consolidated Financial Figures
Figures in US$ million, as of January 2nd 2019: 694,8 CLP/USD,
2005-2018 CAGR + 12.3% nominal 2005-2018 CAGR + 12.0% nominal
2005-2018 CAGR + 14.7% nominal
Revenues EBITDA
Net Income
EBITDA Margin
(%)
Net IncomeMargin (%)
27
15%18% 19% 18%
16%21%
26% 25% 25%21%
18% 17% 16% 15%
July 2019December 2008
Ownership Structure
28
Free float31,9%
Controlling Group68,1%
Free Float28,8%
Controlling Group71,2%
Costanera64,6%
Companies related to Costanera
6,6%
Investment Funds16,7%
AFPs (Pension Funds)4,0%
Brokers7,5%
Others0,7%
Costanera63,0%
Companies related to Costanera
5,1%
Investment Funds17,0%
AFPs (Pension Funds)10,5%
Brokers4,0%
Others0,3%
5 416 16
818
6 6 10 8
15
2516
15
3236
48
93
74
26
28 2823
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
One-time Capex (US$ MM)
Capex (US$ MM)
# Gross Stores Opened
8
4 3 2
Chile Perú Colombia Uruguay
Capex 2019 US$ 25 MM *17 Stores
Capex Evolution
2019 Stores Opening Plan and Capex Evolution
29
DC in ChileBillabong &
7veinteAcquisition
2019 Plan of Stores Openings
*Includes land and initial expenditures for the new distribution center.
New HQ in Chile
30
Certain information set forth in this presentation contains “forward-looking information”. Except for statements of
historical fact, information contained herein constitutes forward-looking statements and may include, but is not limited
to, the projected financial performance and financial position of the Company; the expected development of the Company’s
business, projects and joint ventures; the execution of the Company’s vision and growth strategy; the renewal of the
Company’s current customer, supplier and other material agreements; the completion of the Company’s projects that are
currently underway, in development or otherwise under consideration; and the Company’s future liquidity, working
capital, and capital requirements. These statements are not guarantees of future performance and undue reliance should
not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and
uncertainties, which may cause actual performance and financial results in future periods to differ materially from any
projections of future performance or result expressed or implied by such forward-looking statements. The Company
undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions
should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on
forward-looking statements.
Disclaimer
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