Forus S.a. · BCS:FORUS
Forus — Investor Presentation (March 2018)
41 slides from Forus's investor presentation, March 2018
Slide 1: EeQer
EeQer ~ 2018
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
Slide 3: Key Metrics
Key Metrics Brand Builder & Specialty Retailer 30 Brands and 21 different concepts of Retail stores 516 stores in Chile, Peru, Uruguay and Colombia 4,124 employees1 High level of Cash (MM US$ 129.8) and low level of Debt (Leverage of 0.16)2 CAGR of Sales of last 5 years of 11.2%. Market Cap of US$ 1
Slide 4: Brand Builder in Latam
Brand Builder in Latam # Stores 2017 337 69 56 54 % of total Sales 2017 81.9% 7.4% 8.7% 2.1% Sales 2017* US$ 334.8 MM US$ 30.2 MM US$ 35.3 MM US$ 8.4 MM # Concept stores 2017 17 11 9 4 Concept Stores Population 2017 18.4 MM 31.8 MM 3.5 MM 49.2 MM GDP (PPP)/capita 2017** US$ 24,588 US$ 13,342 US$ 22,
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
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)
Slide 7: Forus History: Chilean Company with 37 years of experience
Forus History: Chilean Company with 37 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
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.
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
Slide 10: Broad Retail Portfolio: 21 Store 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
Slide 11: Forus Management
Forus Management Board Alfonso Swett S. (37) President CEO Alfonso Swett O. (24) Head of IR Investor Relations Hugo Ovando (1) Executive Director Sebastian Macchiavello (2) Ricardo San Carlos (0) Directors Corporate CFO Retail Manager Heriberto Urzúa Sanchez (23) Matias Topali (12) Marisol Cespedes
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
Slide 13: Ownership Structure
Ownership Structure December 2008 December 2017 Brokers Others Brokers Others 7,5% 0,6% Institutional Investors 4,2% 0,2% Institutional Investors 12,9% 4,6% Investment Funds Investment Funds 16,1% 14,6% Companies related to Costanera Costanera 64,6% Companies related to 63,0% Costanera Costanera 6,6
Slide 14: Company Recognition – International Awards
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
Slide 15: Forus Social Responsibility
Forus Social Responsibility Educational Institutions Support of Children in Sports Outdoor vulnerable & Environmental situations activities Employees Professional Development 15
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
Slide 17: Consolidated Income Statement
Consolidated Income Statement MM Ch$ 4Q'17 4Q'16 Var % 2017 2016 Var % Revenues 61.632 61.760 -0,2% 250.962 241.709 3,8% Gross Profit 33.888 34.035 -0,4% 136.426 129.579 5,3% Gross Margin 55,0% 55,1% (0,1) 54,4% 53,6% 0,8 SG&A Expenses (26.438) (25.570) 3,4% (101.805) (94.731) 7,5% SG&A / Revenues (
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets MM Ch$ Dec 17 Dec 16 MM Ch$ Dec 17 Dec 16 Cash and cash equivalents 4.365 4.068 Other financial liabilities, current 2.510 1.761 Other financial assets, current 75.422 61.697 Current trade and other current accounts payable 13.758 12.147 Other non-financial assets, curren
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% Uruguay 7,2% 20,3% 9,5% -8,0% 3,1% -3,5% 8,0% 6,1% 20% Total 9,8% 18,9% 8,9% 4,
Slide 20: Growing Sales - Forus Consolidated
Growing Sales - Forus Consolidated 250.962 241.709 234.206 233.396 193.631 170.768 142.351 120.837 105.716 90.568 104.354 63.480 56.504 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Figures in million Chilean pesos. 20
Slide 21: EBITDA - Forus Consolidated
EBITDA - Forus Consolidated 26,5% 24,9% 24,9% 20,7% 21,2% 19,0% 18,3% 18,3% 17,6% 16,3% 17,4% 16,2% 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 8.305 EBITDA Margin EBITDA (MM Ch$) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Figures i
Slide 22: Net Income - Forus Consolidated
Net Income - Forus Consolidated 20,0% 19,6% 18,4% 16,0% 15,7% 14,1% 11,1% 10,2% 11,1% 10,9% 10,6% 9,4% 7,6% 37.888 36.771 1.1% 33.001 31.366 28.424 26.396 26.697 19.393 11.695 9.249 9.827 7.020 4.317 ROS Net Income (MM Ch$) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Figures in
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
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
Slide 25: EBITDA Margin – Among the Most Efficient Worldwide
10% 15% 25% 30% 35% 40% 5% 20% 0% RESTOQUE (BRA.) E-BAY * As of June of 2017 INDITEX (ZARA) NEXT PLC LVMH JIMMY CHOO GRENDENE (BRA.) FORUS KERING (PPR) AZALEIA/VULCABRAS H&M ROSS STORES KOHL'S FALABELLA EL PUERTO DE LIVERPOOL NIKE BILLABONG AMERICAN EAGLE LULULEMON AREZZO (BRA.) THE TJX COMPANIES AM
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,
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% 26,5% 24,9% 24,9% 25% 21,2% Ebitda Margin 20,7% Exchange Rate 20% 18,3% 18,3% 17,4% 16,3% 16,1% 15% 10% 11,4% 11,1% 11,4% 10,5% 9,7% 9,6% 10,3% 9,5% 10,2% 5% 8,0% 0% 2008 2009 2010 2011 2012 2
Slide 28: Agenda
Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 29
Slide 29: 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
Slide 30: Agenda
Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 31
Slide 31: Forus' Pilar-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
Slide 32: Core Competences
Core Competences Focus on Efficiency Financial Retail Strength Excellence Recognized Profitable Brands Growth Quality Our People Customer Products Oriented 33
Slide 33: Focus on our Customers Lifestyle-Trends
Focus on our Customers Lifestyle-Trends 34
Slide 34: How we will continue Growing
How we will continue Growing Inorganic Growth Organic Growth International Expansion 35
Slide 35: 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
Slide 36: 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
Slide 37: E-Commerce
E-Commerce Websites Social Network 4 3 1 1 3 2013 2014 2015 2016 2017 2018 38
Slide 38: Agenda
Agenda Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2018 5. Strategy 6. Chile Consumption Overview 39
Slide 39: Chile Economic Outlook
Chile Economic Outlook Confidences Index Economic Growth Forecast3 70 IMCE 1 IPEC 2 60 57.4 4,2% 50 3,2% 3,2% 3,1% 51.1 2,3% 40 1,9% 1,6% 1,5% 30 February -18 2013 2014 2015 2016 2017 2018E 2019E 2020E 2013 2014 2015 2016 2017 2018 Dynamism on Credits demand4 Unemployment still high5 12% Var. % Nomi
Slide 40: 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
Slide 41: Benes L
Benes L