November 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
25 Store Concepts of retail chains
1As of September 30th, 2019, 2 Converted to USD using average LTM September 30, 2019 exchange rate of 683,6 CLP/USD. 3 Stock price ($1,181) and FX (795,1 CLP/USD) as ofNovember 22nd 2019,
Forus at a glance
Revenue per Subsidiary 2018 2014 RatiosRevenue per Category 2018
Brand Builder & Specialty Retailer
17,9%
Ratios 2018
344
67
54
62
31 Brandsin our portfolio
527 Storesin 4 countries 1
US$ 364 millionin Revenue LTM 3Q19 2
US$ 384 million in Market Cap3
32 e-Commerce SitesMono-brand & multi-brand
41 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
Solid Balance Sheet1: US$ 138 million in cash and Net financial debt/Ebitda of -1.1x.
0
300
600
2007 2009 2011 2013 2015 2017 3Q19
Uruguay
Colombia
Peru
Chile
# stores 2019
% of total Sales 3Q’19
Sales LTM 3Q’19
# store concepts 3Q’19*
# of websites*
# of brands 3Q’19*
StoreConcepts
* Sales figures converted to USD using average LTM September 30, 2019 exchange rate of 683,6 CLP/USD. Mn = million.
Snapshot by country
4
344
80,8%
US$ 298.2 Mn
20
19
29
67
8,7%
US$ 28,2 Mn
11
4
13
62
8,7%
US$ 30.5 Mn
10
6
15
54
1.8%
US$ 7.1 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
41 International
Awardsin recognition of 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.
4 INTERNATIONAL AWARDS RECEIVED IN 2019
Distributor of the YearChile
IT ManagerSaul Palma (3)
Forus Uruguay CEOJuan Strauch (19)
Forus Colombia CEOPablo Muxi (5)*
Forus Peru CEOGonzalo Sotomayor (9)**
CEOSebastián Swett O. (30)
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 (6)
HR & Legal ManagerManuel Somarriva (11)
Retail ManagerMatias Topali (13)
Head of Investor RelationsIsabel Darrigrandi (< 1)
Corporate Retail Real Estate ManagerClaudio Cabrera (16)
Logistics ManagerPatricio Ramírez (13)
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
)
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
FOO
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 Omnichannel Technology Business Intelligence
19
20
Pillars of omnichannel strategy
20
Mono brand and multi brand websites
Stock online
Ship from store (Forus App)
Click & Collect (Forus App)
Marketplaces
Never out of stock (Forus App)
• Differentiated digital store fronts that leverage brand recognition (and store concepts). The multiple websites are efficiently operated by one, world-class e-commerce platform.
• Store/DC inventory integration platform, updated every 5 minutes. Online assortment (SKUs) based on inventory from both physical stores and DC. Increases assortment, reduces stock outs and optimizes inventory management.
• Using in-store inventory for e-commerce reduces shipping expenses and shipping time; currently rolled out in +130 stores in the Santiago Metropolitan Region (MR).
• Increases customer choice, decreases shipping expenses & shipping time and increases in-store purchases. Attracts new customers that otherwise would not have purchased through e-commerce without C&C. Rolled out in +120 stores in Santiago MR as of November.
• Online traffic aggregators (+ last mile and payment services). New sales channels with the same inventory. Currently participating in Dafiti, Mercado Libre and Mercado Ripley.
• When a product that a customer is looking for is out of stock at a store, the sales person uses the Forus App to find the product (model, size, color) at another store and to make the sale (with C&C or home delivery). Rolled out in +130 stores in Santiago MR as of November.
Omnichannel growing triple digits in Chile
+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
21
124% YoY growth 7.2% of DTC sales
Forus’ e-commerce in Chile continues to grow and gain scale:3Q19
Sustainable corporate practices
22
Educational institutions
Children in vulnerable situations
LEED Gold Certified
Corporate Head Quarters
Employee professional development
Educational institutions
Support of sports, outdoor &
environmental activities
23
Agenda
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
Consolidated Income Statement
24(*) Margin variations are in percentage points.
Ch$ million 3Q19 3Q18 Var % 9M19 9M18 Var %
Revenues 57,750 56,779 1.7% 180,141 185,797 -3.0%
Gross Profit 28,652 30,059 -4.7% 95,410 102,872 -7.3%
Gross Margin 49.6% 52.9% (3.3) 53.0% 55.4% (2.4)
SG&A Expenses (27,010) (25,122) 7.5% (78,407) (76,431) 2.6%
SG&A / Revenues (46.8%) (44.2%) (2.5) (43.5%) (41.1%) (2.4)
Operating Income 1,642 4,936 -66.7% 17,003 26,440 -35.7%
Operating Margin 2.8% 8.7% (5.9) 9.4% 14.2% (4.8)
Other Income / (Expense) 12 19 -33.6% 11,003 67 16275.6%
Net Financial Income / (Expense) 863 469 83.9% 3,448 979 252.0%
Profit / (Loss) in Associate Companies 13 (74) -117.1% (109) (318) -65.8%
Exchange Rate Differentials 1,098 (79) -1492.4% 645 827 -22.0%
Monetary Correction 7 15 -54.3% 10 12 -15.1%
Other 31 57 -45.6% 217 66 228.8%
Non-Operating Income 2,024 407 397.8% 15,214 1,633 831.6%
Profit before Income Tax 3,666 5,343 -31.4% 32,218 28,074 14.8%
Income Tax (775) (1,406) (8,823) (7,682)
Profit 2,891 3,937 -26.6% 23,395 20,391 14.7%
Profit Margin (%) 5.0% 6.9% (1.9) 13.0% 11.0% 2.0
Profit (loss) attributable to equity holders of parent 2,912 3,950 -26.3% 23,530 20,515 14.7%
Margin (%) 5.0% 7.0% (1.9) 13.1% 11.0% 2.0
Profit (loss) attributable to minority interest (20) (13) 58.8% (135) (123) 9.7%
EBITDA 7,043 6,330 11.3% 31,898 30,602 4.2%
EBITDA Margin 12.2% 11.1% 1.0 17.7% 16.5% 1.2
Consolidated Balance Sheet
25
Ch$ million Sep-19 Dec 18 Ch$ million Sep-19 Dec 18
Cash and cash equivalents 7,583 5,259 Other financial liabilities, current 13,926 2,005
Other financial assets, current 92,236 83,505 Current trade and other current accounts payable 11,400 13,599
Other non-financial assets, current 4,325 3,469 Current accounts payable to related companies 760 967
Trade and other account receivables 28,709 23,588 Other current provisions 2,844 5,831
Accounts receivables from related companies 1 0 Current tax liabilities - -
Inventories 76,068 77,604 Current provisions for employee benefits 5,900 5,886
Tax assets, current 56 2,692 Other non-financial liabilities, current 863 1,280
Total Current Assets 208,981 196,117 Total Current Liabilities 35,693 29,567
Other financial assets, Non-current - 25 Other non-current financial liabilities 42,411 1,625
Other non-financial assets, Non-current 2,318 2,589 Other non-current accounts payable - -
Fees receivables, Non-current 456 206 Deferred taxes liabilities - -
Investments in Associated 1,807 1,946 Other non-financial non-current liabilities - 6
Net intangibles assets 1,882 1,791 Total Non-Current Liabilities 42,411 1,631
Goodwill 5,426 5,426
Property, plant and equipments 95,210 41,331 TOTAL LIABILITIES 78,103 31,198
Deferred tax assets 2,758 2,540
Total Non-Current Assets 109,857 55,854 Equity attributable to equity holders of the parent 240,016 219,906
Non-controlling interest 719 867
Total Equity 240,735 220,773
TOTAL ASSETS 318,838 251,970 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 318,838 251,970
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 (%)
26
15%18% 19% 18%
16%21%
26% 25% 25%21%
18% 17% 16% 15%
September 2019December 2008
Ownership Structure
27
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%
Costanera
63.0%
Companies related to
Costanera5.1%
Investment & Mutual Funds17.0%
AFPs (Pension Funds)
10.5%
Brokers
3.8%Others0.6%
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
28
DC in ChileBillabong &
7veinteAcquisition
2019 Plan of Stores Openings
*Includes land and initial expenditures for the new distribution center.
New HQ in Chile
29
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