confidential march 2014 -...

Confidential March 2014

Agenda

1. Company Overview

2. Financial Summary

3. Investment plan 2014

4. How we will continue growing

2

Investment Highlights

Brand Builder and Specialty

Retailer

Regional Presence in

Latin America

Strong Management

Team

Solid Financial Structure

Footwear, apparel and accessories

→ Brand builder: solid and wide brand portfolio of 32 brands.

→ Huge portfolio of 20 different concepts of retail stores in Latam.

→ 100% Focus on Retail Business (and not in real state and financial).

With operations in Chile, Peru, Uruguay and Colombia

→ 421 stores and 48,003 square meters in Latin America.

→ 273 stores in Chile 37 in Colombia

→ 45 in Uruguay 66 in Peru

Experienced management team in the retail sector

→ Expertise and Know-how of the business.

Solid financial structure with excellent financial track record

→ Strong growth in sales (CAGR = 17%) and profitability (CAGR = 31%) over the past 8 years (2005 to 2013).

→ High level of Cash. MM US$ 80.2 as of December 2013.

→ Low level of debt. Leverage below 0.4 since 2006. December 2013: 0.22

→ Market Cap. of MM US$ 1,203 as of March 5, 2014. 3

4

Forus: Brands & Retail

32 Brands

20 stores’ concepts

Our Brands – 32 brands

Licensed Brands

International Licensors:

Wolverine World Wide (USA)

Columbia Sportswear (USA)

Jones New York Group (USA)

Brooks (USA)

Sanuk (USA)

Jansport (USA)

Azaleia (Brazil)

Church’s (England)

Burton (USA)

Skullcandy (USA)

Alpinestars (USA)

Dakine (USA)

Burleigh Point Ltd (Australia)

26 brands

5

Our Brands – 32 brands

Own Brands 6 brands

6

e-commerce

Forus buys

2011

New stores of:

New stores of:

Forus buys Hush Puppies Peru operation

Enter in Colombia.

Forus buys the Uruguayan brand

Forus is opened in the stock market.

Enter in Peru.

Forus buys the brands Azaleia and Norseg.

New stores of:

New stores of:

Our History: 34 years of experience

1980 1982

Alfonso Swett S. start with Hush Puppies in Chile with 70% of participation. The remaining 30% was in the Wolverine World Wide hands

1995 1996 2001

2006 2007

Enter in Uruguay

Alfonso Swett S. buys the remaining 30% from the WWW

1988 1991

Forus buys the brand Calpany.

Born of the company name Forus S.A.

New stores of:

1990 1992

New

Brand

New

Chain

New Chain& Brand

2008 2009

Construction of the footwear’s factory in Chile

1993 2003

2010

New Distributi-on Center in Chile.

Joint Venture with WWW in Colombia.

New stores of:

20122005 2013

7

In the last 6 years, since 2008 until 2013 Forus:

Created / acquired 15 brands

Entered into Peru

Created / acquired 11 new concepts of stores

Opened 203 stores: 34 as an average per year (2008-2013).

How fast can we be

8

20092008 2010 2011 20132012

e-commerce

Corporate Structure

9

Forus S.A

Uruforus S.A.

(Uruguay)

Topsafety S.A.

(Norseg)

Peruforus S.A.

(Peru)

Forus Colombia

S.A.(Colombia)

LBC S.A.S.

(Colombia)

51.00%99.98% 49.00%100% 99.89%

Management

10

BoardAlfonso Swett S. (33)

President+ 6 Board Members

CEOGonzalo Darraidou (13)

Commercial and MKT ManagerSebastián Swett (25)

Factory ManagerCarlos Espinoza (7)

Corporate Retail Real State Manager

Claudio Cabrera (9)

L&D ManagerPatricio Ramírez (7)

Corporate CFOMarisol Céspedes (14)

Uruguay CEO – Juan Strauch (8)

Colombia CEO – Alejandro Cruz (5)

Peru CEO – Eduardo Balbin (3)

HR & Legal ManagerManuel Somarriva (5)

Planning ManagerCarlos Díaz (7)

TopSafety CEOAndrés Infante (4)

Retail ManagerMatías Topali (7)

CFO ChileAndrés Celedón (1)

Head of IRMacarena Swett (6)

Investor RelationsJeanne Marie Benoit

Executive Director Alfonso Swett O. (20)

() years working in the company.

Ownership Structure

Free Float: 31.9%

February 2014

Costanera63,0%Companies

related to Costanera

5,1%

Investment Funds18,0%

Institutional Investors

7,8%

Brokers5,7%

Others 0,4%

Free Float; 31,9%Controlling

Group68,1%

11

Where are we

12

Uruguay

N° Stores: 45

% of total Sales: 8,1%

Sales: US $30.1 MM

# Concept stores : 8

Colombia

N° Stores: 37


Sales: US $10.7 MM


Peru

N° Stores: 66


Sales: US $22.8 MM

# Concept stores: 8

Chile

N° Stores: 273


Sales: US $313.6 MM


Population: 30 MM

GDP per capita: US$6,441

Population: 46 MM


Population: 17 MM


Population: 3 MM


Figures in US$ converted using the January 2, 2014 USD/CLP 524,61 exchange rate. MM = million. Chile’ Sales includes Top Safety business’ Sales.

Retail Chile81,6%

Uruguay8,5%

Perú5,7%

Colombia3,0%

TopSafety1,2%

Revenues by Subsidiaries 2012

Retail Chile81,5%

Uruguay8,1%

Perú6,2%

Colombia2,8%

TopSafety1,4%

Revenues by Subsidiaries 2013

Sales by Subsidiaries

13

International Subsidiaries weight 17.2% of the total Revenues

in 2013.

17,2%17,2%

Footwear is still the most important

Sales per Category Forus Chile

14

Footwear73%

Apparel20%

Accesories7%

2013

# of Concepts’ Stores

Our Retail Stores per Country

18

8

5

8

Store’s ConceptsCountry

15

Agenda

1. Company Overview




16

Highlights 4Q 2013

New Brand and Retail chain Billabong in Chile & Perú

17

Launch E-commerce brand Merrell

Secondary Offering of Shares – 3% of the property

2 New Concept’ Store in Peru

New stores openings 4Q 2013: 47

Highlights 4Q 2013

18

Chile 12

Uruguay 6

Colombia 5

Perú 24

5

1625

47

93

-4 -2 -1 -2 -9

1

14

24

45

84

1Q'13 2Q'13 3Q'13 4Q'13 2013

Opened Closed Net Openings

4Q'13 % Revenues 4Q'12 % Revenues Var. % 13/12

Th Ch$ Th Ch$

Revenues 49.814.378 43.095.652 15,6%

Cost of Sales (20.294.217) -40,7% (17.443.871) -40,5% 16,3%

Gross Margin 29.520.161 59,3% 25.651.781 59,5% 15,1%- -

Logistic costs (145.249) -0,3% (376.918) -0,9% -61,5%

Administrative Expenses (19.354.847) -38,9% (15.486.822) -35,9% 25,0%

Selling, General and Administrative Expenses (19.500.096) -39,1% (15.863.740) -36,8% 22,9%

Operating Income 10.020.065 20,1% 9.788.041 22,7% 2,4%

Other incomes of total operation 939.106 501.380 87,3%

Other expenses of total operation (183.309) (124.350) 47,4%

Financial Income 359.645 385.418 -6,7%

Financial Expenses (118.979) (107.324) 10,9%

Participation in gains (losses) of joint venture businesses 193.120 79.551 142,8%

accounted by using the proportional value of participation

Exchange Differentials 1.044.655 507.206 106,0%

Result of Indexation units (15.066) (17.040) -11,6%

Other gains and losses (551.651) (288.378) 91,3%

Non-Operating Income 1.667.521 3,3% 936.463 2,2% 78,1%

Profit before income tax 11.687.586 23,5% 10.724.504 24,9% 9,0%

(Expenses) Income Taxes (1.854.068) (1.462.091) 26,8%

Profit (loss) 9.833.518 19,7% 9.262.413 21,5% 6,2%

Profit (loss) attributable to equity holders of parent 9.751.255 9.101.244 7,1%

Profit (loss) attributable to minority interest 82.263 161.169 -49,0%

Profit (loss) 9.833.518 19,7% 9.262.413 21,5% 6,2%

EBITDA 11.478.647 23,0% 11.056.825 25,7% 3,8%

expressed in Thousands of Chilean Pesos from October 1st to December 31

FORUS S.A. & SUBSIDIARIES

Consolidated Income Statement 3rd Quarter

Consolidated Income Statement 4Q’13

19

2013 % Revenues 2012 % Revenues Var. % 13/12

Th Ch$ Th Ch$

Revenues 193.630.849 170.767.842 13,4%

Cost of Sales (81.426.550) -42,1% (73.455.167) -43,0% 10,9%

Gross Margin 112.204.299 57,9% 97.312.675 57,0% 15,3%

Logistic costs (1.607.588) -0,8% (1.559.106) -0,9% 3,1%

Administrative Expenses (67.708.467) -35,0% (57.622.935) -33,7% 17,5%

Selling, General and Administrative Expenses (69.316.055) -35,8% (59.182.041) -34,7% 17,1%

Operating Income 42.888.244 22,1% 38.130.634 22,3% 12,5%

Other incomes of total operation 2.049.895 660.154 210,5%

Other expenses of total operation (366.329) (245.500) 49,2%

Financial Income 1.854.216 1.557.119 19,1%

Financial Expenses (481.817) (410.815) 17,3%

Participation in gains (losses) of joint venture businesses 390.842 171.926 127,3%

accounted by using the proportional value of participation

Exchange Differentials 655.075 (1.011.827) -164,7%

Result of Indexation units (32.899) (35.425) -7,1%

Other gains and losses (607.234) (211.230) 187,5%

Non-Operating Income 3.461.749 1,8% 474.402 0,3% 629,7%

Profit before income tax 46.349.993 23,9% 38.605.036 22,6% 20,1%

(Expenses) Income Taxes (8.462.387) (7.239.408) 16,9%

Profit (loss) 37.887.606 19,6% 31.365.628 18,4% 20,8%

Profit (loss) attributable to equity holders of parent 37.822.476 31.194.225 21,2%

Profit (loss) attributable to minority interest 65.130 171.403 -62,0%

Profit (loss) 37.887.606 19,6% 31.365.628 18,4% 20,8%

EBITDA 48.209.871 24,9% 42.494.713 24,9% 13,4%

FORUS S.A. & SUBSIDIARIES

Consolidated Income Statement

expressed in Thousands of Chilean Pesos accumulated to December

Consolidated Income Statement 2013

20

Data in nominal values (in local currency)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013

SSS 14,0% 17,9% 5,7% -2,0% 2,2% 4,3% 5,9% 8,4% 8,3% 5,3%

20132012

P&L 4Q '13 % Revenues 4Q '12 % Revenues Var. % 13/12

Revenues 34.340 29.469 16,5%

Cost of Sales -13.115 -11.189 17,2%

Gross Margin 21.225 61,8% 18.280 62,0% 16,1%

Operating Income 8.624 25,1% 7.543 25,6% 14,3%


Revenues 39.203 34.603 13,3%

Cost of Sales -15.678 -13.991 12,1%

Gross Margin 23.525 60,0% 20.611 59,6% 14,1%


Retail Chile

Retail 4Q

Same Store Sales

21

Wholesale 4Q

Retail + Wholesale 4Q

12% of Sales in

Chile

88% of Sales in

Chile


Revenues 4.863 5.134 -5,3%

Cost of Sales -2.563 -2.802 -8,5%

Gross Margin 2.299 47,3% 2.331 45,4% -1,4%

Operating Income 333 6,9% 702 13,7% -52,5%

P&L 2013 % Revenues 2012 % Revenues Var. % 13/12

Revenues 37.177 33.901 9,7%

Cost of Sales -19.113 -18.532 3,1%

Gross Margin 18.064 48,6% 15.369 45,3% 17,5%



Revenues 124.132 108.940 13,9%

Cost of Sales -49.415 -43.528 13,5%

Gross Margin 74.717 60,2% 65.413 60,0% 14,2%


Retail Chile

Retail 2013

22

23% of Sales in

Chile

Wholesale 2013

77% of Sales in

Chile

Retail + Wholesale 2013


Revenues 161.309 142.841 12,9%

Cost of Sales -68.528 -62.060 10,4%

Gross Margin 92.781 57,5% 80.781 56,6% 14,9%



1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013

SSS -0,6% 11,0% 6,7% 11,2% 18,2% -1,3% 8,9% 11,9% 8,0% 9,3%

2012 2013

Colombia

Financial Statement 4Q

Same Store Sales

23

4,0% Consolidated

2013

Without Intra-company Sales 4Q


Revenues 1.970 1.925 2,3%

Cost of Sales -959 -901 6,5%

Gross Margin 1.011 51,3% 1.024 53,2% -1,3%



Revenues 1.970 1.836 7,3%

Cost of Sales -959 -812 18,2%

Gross Margin 1.011 51,3% 1.024 55,8% -1,3%



Revenues 5.517 5.093 8,3%

Cost of Sales -2.642 -2.158 22,4%

Gross Margin 2.875 52,1% 2.935 57,6% -2,0%

Operating Income -120 -2,2% 246 4,8% -148,9%


Revenues 5.589 6.270 -10,9%

Cost of Sales -2.714 -3.335 -18,6%

Gross Margin 2.875 51,4% 2.935 46,8% -2,0%

Operating Income -120 -2,2% 246 3,9% -148,9%

Colombia

Financial Statement 2013

24

2,8% Consolidated

2013

Without Intra-company Sales 2013


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013

SSS 15,3% 22,0% 19,2% 10,5% 12,6% 0,2% 0,9% 4,2% 16,5% 4,2%

2012 2013


Revenues 11.967 9.687 23,5%

Cost of Sales -5.025 -4.369 15,0%

Gross Margin 6.942 58,0% 5.319 54,9% 30,5%

Operating Income 1.525 12,7% 986 10,2% 54,6%


Revenues 3.846 2.564 50,0%

Cost of Sales -1.484 -1.177 26,1%

Gross Margin 2.362 61,4% 1.387 54,1% 70,3%

Operating Income 534 13,9% 246 9,6% 117,4%

Peru


Same Store Sales

25

7,7% Consolidated

2013


6,2% Consolidated

2013


Revenues 4.466 4.221 5,8%

Cost of Sales -2.086 -1.812 15,1%

Gross Margin 2.380 53,3% 2.409 57,1% -1,2%



Revenues 15.770 14.373 9,7%

Cost of Sales -7.229 -6.809 6,2%

Gross Margin 8.541 54,2% 7.564 52,6% 12,9%

Operating Income 1.990 12,6% 2.542 17,7% -21,7%


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2013

SSS 12,6% 11,1% 8,8% 6,6% -5,7% -5,1% -12,0% -9,4% 9,5% -8,0%

2012 2013

Uruguay


Same Store Sales

26

9,0% Consolidated

2013


8,1% Consolidated

2013

108121

173202 199

230

271

326

369

2005 2006 2007 2008 2009 2010 2011 2012 2013

Growing Sales

Forus Consolidated Revenues

27

Historical Data in MM US$ (January 2, 2014 USD/ClP)

13,4%

14,7%17,6%

19,0%18,3%

16,3%

20,7%

26,5%24,9%

24,9%

1621

3337

32

48

72

81

92

2005 2006 2007 2008 2009 2010 2011 2012 2013

EBITDA Margin

Forus Consolidated EBITDA

CAGR nominal (2005-2013) = 24,6%

EBITDA Margin

EBITDA 2828

13,4%


813

1822

19

37

5460

72

2005 2006 2007 2008 2009 2010 2011 2012 2013

CAGR nominal (2005-2013) = 31,2%

Net Income

29ROSNet Income

20,8%

Forus Consolidated Net Income

29

7,6%

11,1%10,2% 11,1%

9,4%

16,0%

20,0%

18,4%19,6%


0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

Chile Perú Colombia Uruguay

Operational Efficiencies

We have been achieving a more efficient operation through

decreasing Operational Costs as a percentage over Revenues

40,5%

39,8%

37,8% 38,0%

36,2%

34,7%

35,8%

Operational Cost / Revenues

30

Agenda

1. Company Overview




31

Investment Plan 2014

MM US$ 12

32

Consolidated Forus

Capex

40 new stores

New Stores

Estimated 2014

Agenda

1. Company Overview




33

How we will continue growing

34

International Expansion

Inorganic Growth

OrganicGrowth

2-14 15-25 +26

Years

New Brands

Oportunities

35

New Brands Comming

20

# Stores

# Concept Stores

% of Total Forus Sales

Gross Margin %

2012

34

6

5,7%

54,9%

2013

66

8

6,2%

58,0%

Enhancing consolidation in Peru

37

2012 Stores51%

Organic Growth

23%

Billabong26%

Otros49%

Others

Confidential March 2014

confidential march 2014 -...

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