Forus S.a. · BCS:FORUS
Forus — Investor Presentation (November 2014)
40 slides from Forus's investor presentation, November 2014
Slide 1: Brands & Retail – November 2014
brands & retail retail November 2014
Slide 2: Agenda
Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2014 5. How we will continue growing 2
Slide 3: Investment Highlights
Investment Highlights Footwear, apparel and accessories Brand Builder → Brand builder: solid and wide brand portfolio of 32 brands. and Specialty → Huge portfolio of 19 different concepts of retail stores in Latam. Retailer → 100% Focus on Retail Business (and not in real state and financial). With
Slide 4: Forus: Brands & Retail
Forus: Brands & Retail 32 Brands 19 stores’ concepts 4
Slide 5: Our Brands – Licensed Brands
Our Brands – 32 brands Licensed Brands 26 brands International Licensors: Wolverine World Wide (USA) Columbia Sportswear (USA) Jones New York Group (USA) Brooks (USA) Jansport (USA) Azaleia (Brazil) Church’s (England) Burton (USA) Skullcandy (USA) Dakine (USA) Burleigh Point Ltd (Australia) 5
Slide 6: Our Brands – Own Brands
Our Brands – 32 brands Own Brands 6 brands 6
Slide 7: Our History: 34 years of experience
Our History: 34 years of experience 1980 1982 1988 1990 1991 1992 1993 1995 1996 2001 2003 2005 Alfonso Swett S. Construction Alfonso Enter in Forus buys New start with Hush of the Swett S. Uruguay the brand stores Puppies in Chile footwear’s buys the Calpany. of: with 70% of factory in remaining pa
Slide 8: How fast can we be
How fast can we be In the last 5 years, since 2009 until 2013 Forus: Created / acquired 15 brands Created / acquired 6 new concepts of stores Opened 169 stores: 34 as an average per year Launched e-commerce Acquired 2 companies: 7veinte and Billabong e-commerce 2009 2010 2011 2012 2013 201
Slide 9: Corporate Structure
Corporate Structure Forus S.A 100% 99.89% 99.98% 51.00% 49.00% Uruforus S.A. Topsafety S.A. Peruforus S.A. Forus Colombia LBC S.A.S. S.A. (Uruguay) (Norseg) (Peru) (Colombia) (Colombia) 9
Slide 10: Management
Management Board Alfonso Swett S. (34) President + 6 Board Members Executive Director Head of IR Investor Relations Alfonso Swett O. (21) Macarena Swett (6) Jeanne Marie Benoit (1) CEO Gonzalo Darraidou (14) Commercial and MKT Manager Corporate CFO Sebastián Swett (26) Marisol Céspedes (15) Corporat
Slide 11: Ownership Structure
Ownership Structure December 2008 October 2014 Institutional Brokers Others Institutional Investors Investors Brokers Others 7,5% 0,6% 4,3% 0,2% 4,6% 5,4% Investment Investment Funds Funds 16,1% 22,0% Companies Costanera Costanera related to 64,6% Companies 63,0% Costanera related to 6,6% Costanera
Slide 12: Increasing our Average Volume Trade
Increasing our Average Volume Trade Increasing our Average Daily Volume Trade by 2.6x → From US$ 485,780 in 2007 to US$ 1,188,084 as for September 2014. Average Daily Volume trade (US$) 1.377.684 1.188.084 752.414 485.780 419.322 324.372 332.968 160.252 2007 2008 2009 2010 2011 2012 2013 2014 12 Sep
Slide 13: Where are we
Where are we Peru Colombia N° Stores: 75 N° Stores: 44 % of total Sales: 8.3% % of total Sales: 2.3% Sales: US $23.8 MM Sales: US $7.3 MM # Concept stores: 9 # Concept stores: 5 Population: 30 MM Population: 46 MM GDP per capita: US$6,660 GDP per capita: US$7,826 Chile Uruguay N° Stores: 295 N° Stor
Slide 14: Sales by Subsidiaries
Sales by Subsidiaries International Subsidiaries’ weight increased by 270 bp, reaching a 18.7% of the total Revenues in 9M 2014. 18.7% 16.0% 14
Slide 15: Footwear is still the most important
Footwear is still the most important Sales per Category Forus Chile 2005 2013 Accesories 7% Apparel 20% Footwear 73% 15
Slide 16: Our Retail Stores per Country
Our Retail Stores per Country # of Concepts’ Country Stores Store’s Concepts 17 8 5 9 16
Slide 17: Our International Recognition
Our International Recognition Last 4 years awards received, for the whole world, full year 4 5 10 5 2010 2011 2012 2013 Excellence in Brand Best Distributor in the Best Distributor for Best Distributor for Building world the brands the brands Apparel Apparel Highest Revenue’s Best Execut
Slide 18: Brand Positioning by Concept
Brand Positioning by Concept Fashion / Dress Casual / Urban Jansport Keds Just Smile Nine West Pasqualini Skullcandy Azaleia Calpany Cushe We Love Shoes Hush Puppies Kids Church’s Sorel Caterpillar Hush Puppies Sperry Sebago Dakine Billabong Burton Rockford Brooks Merrell Columbia Patagonia Montrail
Slide 19: Agenda
Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2014 5. How we will continue growing 19
Slide 20: Consolidated Income Statement 9M 2014
Consolidated Income Statement 9M 2014 20
Slide 21: Consolidated Balance Sheets 9M 2014
Consolidated Balance Sheets 9M 2014 FORUS S.A. & SUBSIDIARIES CONSOLIDATED BALANCE SHEETS expressed in Thousands of Chilean Pesos, as for Sep 2014 Dec 2013 Th Ch$ Th Ch$ ASSETS Current Assets Cash and cash equivalents 18.889.895 8.383.418 Other financial assets, current 19.559.100 33.687.676 Other n
Slide 22: Consolidated Balance Sheets 9M 2014
Consolidated Balance Sheets 9M 2014 Sep 2014 Dec 2013 Th Ch$ Th Ch$ LIABILITIES Current Liabilities Other financial liabilities, current 1.349.975 2.199.410 Current trade and other current accounts payable 12.072.062 12.784.120 Current accounts payable to related companies 475.375 304.828 Other curr
Slide 23: Growing Sales
Growing Sales Forus Consolidated Revenues 323 18,9% 285 285 238 240 202 176 174 151 106 94 2005 2006 2007 2008 2009 2010 2011 2012 2013 9M'13 9M'14 23 Historical Data in MM US$ (October 1, 2014 USD/CLP at $599.22)
Slide 24: EBITDA Margin
EBITDA Margin Forus Consolidated EBITDA CAGR nominal (2005-2013) = 24,6% 26,5% 24,9% 24,9% 25,5% 21,9% 20,7% 19,0% 80 18,3% 17,6% 16,3% 2,0% 71 14,7% 63 61 63 42 32 29 28 19 14 2005 2006 2007 2008 2009 2010 2011 2012 2013 9M'13 9M'14 24 Historical Data in MM US$ (October 1, 2014 USD/CLP at $599.22)
Slide 25: Net Income
Net Income Forus Consolidated Net Income CAGR nominal (2005-2013) = 31,2% 20,0% 19,6% 19,5% 18,4% 16,0% 16,5% 63 0,9% 9,4% 52 11,1% 11,1% 10,2% 47 47 47 7,6% 32 20 15 16 12 7 2005 2006 2007 2008 2009 2010 2011 2012 2013 9M'13 9M'14 25 Historical Data in MM US$ (Oct 1, 2014 USD/CLP) Net Income ROS
Slide 26: Number of Stores
Open Rate Acceleration of average store opening in the last 5 years from 24 stores in 2008- 2012 to 41 stores as of 9M 14. 2012 2013 9M'14 Last 5 years average 24 34 41 450 400 350 Number of Stores 300 Uruguay 250 Colombia Peru 200 Chile 150 100 50 0 26 2007 2008 2009 2010 2011 2012 2013 9M'14
Slide 27: Agenda
Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2014 5. How we will continue growing 27
Slide 28: Above the Chilean Economy SSS growth
Above the Chilean Economy SSS growth Forus Chile SSS is above Chilean Imacec 25,0% 20,0% 19,6% 18,7% 15,0% 10,3% 10,0% 9,3% 10,1% 8,3% 5,3% 5,0% 4,4% 5,8% 5,8% 5,4% 0,5% 3,5% 4,1% 1,4% 0,0% 2007 2008 2009 2010 2011 2012 2013 9M 14 -1,0% -5,0% Var. % SSS Forus Var% IMACEC Chile 28 Source: Chilean Cen
Slide 29: Forus is the 2nd highest EBITDA margin worldwide
10% 15% 20% 25% 30% -5% 0% 5% LULULEMON FORUS INDITEX (ZARA) GRENDENE (BRA.) RESTOQUE (BRA.) VF CORPORATION GAP AREZZO (BRA.) ROSS STORES J CREW THE TJX COMPANIES GRIMOLDI (ARG.) UNDER ARMOUR Ebitda Margin 2013 FALABELLA FOOT LOCKER HITES WWW AMERICAN EAGLE CROCS IN RETAIL (PERÚ) COLUMBIA SHIMAMURA
Slide 30: Agenda
Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2014 5. How we will continue growing 30
Slide 31: Investment Plan 2014 and 2015
Investment Plan 2014 and 2015 Consolidated Forus Capex 2014 E MM US$ 12 New Stores Estimated 2014 + 40 new stores Real 9M 2014 45 stores Estimated 2015 25-30 stores / year 9'M14 Net Stores Openings 22 9 7 7 31
Slide 32: Agenda
Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan 2014 5. How we will continue growing 32
Slide 33: Forus: Economic Context
Forus: Economic Context Forus is a more defensive Company when there is a economic activity decline, because: Forus has a high brand and store recognition. Our segment is the High- end customer: more inelastic. Without the financial risk of own credit cards. Type of products that we sell: Fo
Slide 34: Forus: Economic Context
Forus: Economic Context Real Retail sales in Santiago by category Jan-Sep 2014/2013 (% YoY) Perishable Foods -6,8 Grocery 0,6 Furniture -4,8 Appliance 1,8 Electronics 3,3 Footwear 12,5 Apparel 6,8 Total 1,4 -10 -5 0 5 10 15 Source: Study department National Chamber of Commerce 34
Slide 35: Footwear Market Share in Chile
Footwear Market Share in Chile Forus gained 100 bp in footwear market share in 1 year US$ FOB 2012 US$ FOB 2013 CENCOSUD 2% CENCOSUD 3% WALMART 3% WALMART 4% FALABELLA 5% FALABELLA 4% Otros 60% Otros 60% ADIDAS 5% ADIDAS 5% NIKE 7% NIKE 6% BATA 8% BATA 9% FORUS 9% FORUS 10% Source: Market share acco
Slide 36: How we will continue growing
How we will continue growing Organic Growth Inorganic Growth International Expansion 36
Slide 37: New Acquisitions
New Acquisitions Youth Segment (15-25 years) Date Concept Store Brands* # Initial # Stores stores 9M14 Sept 8 10 2013 8 8 Nov 2013 17 19 33 37 * In the case of 7veinte it appears the Main Brands, but it has more than these 3 brands announced. 37
Slide 38: New Acquisitions
New Acquisitions Inorganic growth As we wanted, Footwear participation grew 433 bp, reaching a 7% of total sales in the new stores 7veinte as of September 2014. Sales per Category 2012 Footwear Apparel Accessories 38
Slide 39: E-commerce Launched
Nov-13 May-13 May-14 E-commerce Launched Jan-14 Sep-13 39
Slide 40: Brands & Retail
brands & retail retail