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FINANCIAL REPORT

FOURTH QUARTER 2018

MARCH 2019

Index

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1. Executive Summary ………………………………….………....…................................................... 3

2. Summary of Consolidated Results 4th Quarter 2018........................................... …….. 4

3. Summary of Consolidated Results 2018…………………………………………………………………. 5

4. Highlights of the Period..........…………………………………………………………………………..…… 6

5. Consolidated Income Statement ………....…................................................................ 8

6. Analysis of Consolidated Results ………....…................................................................ 10

7. Analysis of Financial Statements ……………………………………………………………………….…. 14

8. Summary Table of Countries...................................................................................... 19

9. Data by Country and Business .................................................................................... 20

10. Consolidated Financial Statements- IFRS

- Consolidated Balance Sheets ………....…............................................................ 25

- Consolidated Income Statement ………....…....................................................... 26

- Consolidated Cash Flows Statement.….............................................................. 27

Notes:

• All figures in dollars are calculated using the observed dollar exchange rate for January 2nd,2019:

(Ch$ 694.77 per US$ 1).

• Symbols for periods in the year: Quarters: 1Q (first quarter), 2Q (Third Quarter), 3Q (third

quarter) and 4Q (fourth quarter). 1S (First semester) and 9M (first nine months of the year), as

applicable.

• Currency symbols: Ch$ or CLP: Chilean pesos; US$: U.S. dollars; M: millions.

• Other symbols: SSS (Same store sales). SG&A: Selling, General and Administration. YoY: Year on

Year. DTC: Direct to Consumer. Sqm: square meters

Executive Summary

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During the fourth quarter of 2018 the company demonstrates once again the

successful results of the ambitious plan to capitalize the international subsidiaries of

Peru and Colombia (turn over plan), where both Peru and Colombia reached the

highest quarterly figures in Ebitda and Operational Result since 2015, thus closing the

year with the best Ebitda results also since 2015. In addition, for Colombia, there is an

annual positive Ebitda after 3 years of negative Ebitda (during the years 2015 to 2017).

The digital business maintained an excellent performance during the fourth quarter,

showing a strong sales growth of 215% in Chile, in addition to achieving a 7.1% weight

over Direct to Consumer (DTC) sales, increasing in 3 times compared to the weight of

2.3% of 4Q'17. We continue to strengthen our online presence and enhance the

company's digital shopping experience, incorporating 4 new websites with e-

commerce for our brands. Also, in this quarter, e-commerce was launched for the first

time in Peru, inaugurating two e-commerce sites for the Billabong and Columbia

brands, reaching 28 websites with e-commerce at a consolidated level in 2018. With

this, we continue to consolidate our online presence in the 4 countries of the region,

consistent with the digital growth strategy of the company.

During this quarter Forus faced a challenging environment in Chile and Uruguay. In

the case of Chile, it faced a stagnant market in terms of consumption growth, and with

an aggressive promotions’ strategy held by the competition. On the other hand,

Uruguay continues to face a complex scenario largely influenced by market and

macroeconomic variables, which strongly affected its results during the quarter.

At a consolidated level, sales remained stable compared to the previous year, but with

a gross margin that contracted by 172 basis points, as well as an operating result and

net income that decreased significantly.

Summary of Consolidated Results 4Q 2018

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• Consolidated Revenues of Ch$ 61,915 million (US$ 89.1 million) grew 0.5% with

respect to 4Q'17.

• Digital business revenues in Chile grew 215% compared to 4Q'17.

• Gross margin decreased 172 basis points, reaching 53.3% compared to 55.0% in

4Q'17. Gross Profit of Ch$ 32,978 million (US$ 47.5 million) decreased 2.7% in the

period.

• Operating Income of Ch$ 4,804 million (US$ 6.9 million) decreased 35.5%. The

operating margin decreased by 433 basis points and reached 7.8% of revenues.

• Ebitda of Ch$ 6,940 million (US$ 10.0 million) decreased 22.0% with respect to

4Q'17. The Ebitda margin of 11.2% was reduced by 323 basis points.

• Earnings for the year amounted to Ch$ 5,159 million (US$ 7.4 million), which

decreased 19.8% with respect to the same quarter of the previous year, with a

result on revenues of 8.3%.

• The results of the international operations of Peru, Uruguay, and Colombia had a

growth in the gross margin of 247 basis points, and a decrease in the operating

result by 29%. The good performances of Peru and Colombia boosted all the

results, while Uruguay affected them negatively.

Summary of Consolidated Result 2018

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• Consolidated Revenues decreased 0.4% excluding the effect of the conversion rate of

the subsidiaries. With this effect, consolidated revenues of Ch$ 247,712 million (US$

356.5 million) decreased 1.3% with respect to 2017.

• Revenues from digital operations grew 191% in Chile compared to 2017.

• Gross margin increased 48 basis points, reaching 54.8% compared to 54.4% the previous

year. Gross Profit of Ch$ 135,850 million (US$ 195.5 million) decreased 0.4% compared

to the previous year.

• Operating Income of Ch$ 31,245 million (US$ 45.0 million) decreased 9.8% with respect

to 2017. Operating margin was 12.6% of revenues.

• Ebitda of Ch$ 37,541 million (US$ 54.0 million) decreased 7.5% with respect to 2017.

The EBITDA margin decreased 101 basis points, reaching a margin of 15.2%.

• Earnings of Ch$ 25,550 million (US$ 36.8 million) decreased 4.3% with respect to 2017,

and represented 10.3% of the revenues for the year 2018.

• The results of the international operations of Peru, Uruguay and Colombia in 2018

maintained their good performance, showing growth of 221 basis points in gross

margin, increasing operating income by 122% and growing in net income by 43%. They

represented 18% of the consolidated revenues of 2018.

Highlights of the Period

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Store Opening

During the Fourth Quarter of 2018 the following 11 new stores were opened:

Country # Stores Chain Store City Sq. meters

Chile Columbia Plaza Tobalaba Santiago 69

Columbia Coyhaique Coyhaique 98

Merrell Coyhaique Coyhaique 117

Caterpillar Iquique Iquique 84

Merrell Puerto Varas Puerto Varas 80

Columbia La Fábrica Santiago 196

Caterpillar La Fábrica Santiago 205

Burton Puerto Varas Puerto Varas 44

Merrell Plaza La Serena La Serena 74

Azaleia Talca Talca 30

Total 10 997

Uruguay Rockford Punta Carretas Montevideo 93

1 93

Total 11 1.090

E-commerce launched in Peru

In Peru, e-commerce was launched with the opening of 2 e-commerce sites, of the Billabong

brand (billabong.pe) in October and Columbia brand (columbia.pe) in December.

With this, the company already has a business and digital strategy present in the 4

countries, continuing to strengthen the online business and increasingly strengthen the

company's digital strategy.

Incorporation of new websites with e-commerce

During the fourth quarter, new websites with e-commerce of portfolio brands were

incorporated.

Chile

In October, the brand Nine West (ninewest.cl) launched its e-commerce site,

completing a total of 18 e-commerce sites in the country.

http://www.billabong.pe/

http://www.columbia.pe/

http://www.ninewest.cl/

Highlights of the Period

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Colombia

During November, Merrell (merrellcolombia.com) launched its e-commerce site,

adding the third site in the country. In addition, in October there was a re-launch on

new platforms of the Cat and Hush Puppies sites.

New Burton Store in Chile

In December 2018 the 1st Burton store in Forus opens in Chile. This 44 square meters store

is located in the south of Chile, in the city of Puerto Varas.

HIGHLIGHTS AFTER THE PERIOD

Acquisition of the Brand Aldo in Uruguay

In January 2019 Forus acquired the Aldo brand for Uruguay, a transaction that includes the

acquisition of current and future inventories and two stores located in Montevideo, in the

main commercial centers of the country: Punta Carretas and Montevideo Shopping.

http://www.merrellcolombia.com/

Consolidated Income Statement – IFRS

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4Q'18 % Revenues 4Q'17 % Revenues Var. % 18/17

Th Ch$ Th Ch$

Revenues 61.915.175 61.632.269 0,5%

Cost of Sales (28.937.102) -46,7% (27.744.594) -45,0% 4,3%

Gross Profit 32.978.073 53,3% 33.887.675 55,0% -2,7%- -

Selling, General and Administrative Expenses (28.173.893) -45,5% (26.437.948) -42,9% 6,6%

Operating Income 4.804.180 7,8% 7.449.727 12,1% -35,5%

Other incomes of total operation 76.593 219.689 -65,1%

Other expenses of total operation 184.253 (116.463) -258,2%

Financial Income (87.523) 392.727 -122,3%

Financial Expenses (87.610) (93.466) -6,3%

Participation in gains (losses) of joint venture businesses 60.453 (43.299) -239,6%

accounted by using the proportional value of participation

Exchange Differentials 902.859 (891.059) -201,3%

Result of Indexation units 30.292 48.220 -37,2%

Other gains and losses 512.081 (215.790) -337,3%

Non-Operating Income 1.591.398 2,6% (699.441) -1,1% -327,5%

Profit before income tax 6.395.578 10,3% 6.750.286 11,0% -5,3%

Income Taxes (1.236.844) (315.202) 292,4%

Profit (Loss) 5.158.734 8,3% 6.435.084 10,4% -19,8%

Profit (loss) attributable to equity holders of parent 5.073.129 6.430.826 -21,1%

Profit (loss) attributable to minority interest 85.605 4.258 1910,5%

Profit (loss) 5.158.734 8,3% 6.435.084 10,4% -19,8%

EBITDA 6.939.670 11,2% 8.901.666 14,4% -22,0%

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

FORUS S.A. & SUBSIDIARIES

Consolidated Income Statement 4th Quarter

Consolidated Income Statement – IFRS

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2018 % Revenues 2017 % Revenues Var. % 18/17

Th Ch$ Th Ch$

Revenues 247.711.908 250.961.861 -1,3%

Cost of Sales (111.862.334) -45,2% (114.536.336) -45,6% -2,3%

Gross Profit 135.849.574 54,8% 136.425.525 54,4% -0,4%

Selling, General and Administrative Expenses (104.604.972) -42,2% (101.804.728) -40,6% 2,8%

Operating Income 31.244.602 12,6% 34.620.797 13,8% -9,8%

Other incomes of total operation 411.947 1.523.302 -73,0%

Other expenses of total operation (83.909) (595.297) -85,9%

Financial Income 1.207.960 1.156.052 4,5%

Financial Expenses (403.611) (385.487) 4,7%

Participation in gains (losses) of joint venture businesses (257.584) (171.823) 49,9%

accounted by using the proportional value of participation

Exchange Differentials 1.729.477 (1.387.816) -224,6%

Result of Indexation units 42.186 37.363 12,9%

Other gains and losses 578.097 (335.593) -272,3%

Non-Operating Income 3.224.563 1,3% (159.299) -0,1% -2124,2%

Profit before income tax 34.469.165 13,9% 34.461.498 13,7% 0,0%

Income Taxes (8.918.974) (7.764.969) 14,9%

Profit (Loss) 25.550.191 10,3% 26.696.529 10,6% -4,3%

Profit (loss) attributable to equity holders of parent 25.587.975 26.994.316 -5,2%

Profit (loss) attributable to minority interest (37.784) (297.787) -87,3%

Profit (loss) 25.550.191 10,3% 26.696.529 10,6% -4,3%

EBITDA 37.541.362 15,2% 40.569.090 16,2% -7,5%


Consolidated Income Statement

expressed in Thousands of Chilean Pesos accumulated to December 31st

Analysis of Consolidated Results

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Operating Results

• Consolidated Revenues of Ch$ 61,915 million (US$ 89.1 million) grew 0.5% with respect

to 4Q'17.

In Chile, sales of Ch$ 49,255 million (US$ 70.9 million) grew 0.9% and accounted for

79.5% of consolidated revenues in 4Q'18. As for the Retail business in Chile, sales

continued to be affected by low levels of national consumption and lower sales of

foreigners compared to the previous year, which continued to decrease in flow to the

country and to our stores. In despite, sales managed to grow by 0.6%, thanks to the

increase in the conversion rate. The SSS was only 0.2% -although it was the first positive

SSS of the year- and the square meters only grew 1.0% with respect to 2017. In the

Wholesale business, sales grew by 3.1% in the quarter, which is a change in trend, since

this business’ sales had been decreasing since 3Q’17.

Regarding the digital business in Chile, sales grew 215% in 4Q'18, boosted by the

application of Stock App that had a total of 118 stores operating by the end 2018, and

the incorporation of a new website with e-commerce for the Nine West brand. This good

performance allowed the weight of the digital business over DTC sales to increase

strongly again, going from 2.3% in 4Q'17 to 7.1% in 4Q'18.

Regarding the subsidiaries, the results by country are as follows:

• In Peru, sales grew 3.9% compared to 4Q'17, boosted by a strong SSS growth of

11.2% in local currency. This growth in sales stands out considering that the square

meters decreased by -6.9%, due to 4 fewer stores compared to December 2017, as

a result of the execution of the profitability strategy of this operation, closing the

unprofitable stores.

• In Uruguay sales in its local currency fell 3.6% with respect to 4Q'17, affected by a

SSS of -9.4%, explained by the complex scenario that is experiencing regarding

consumption. On the other hand, the square meters increased by 7.1% as of

December 2018.

• In Colombia sales grew 3.5%, boosted by an excellent SSS of 6.4% as a result of the

good commercial and retail strategies that are still carried out in the subsidiary,

consistent with the company's profitability efforts. This growth in sales is

remarkable, considering that the square meters decreased by -6.1% in 2018.


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• Gross margin decreased 172 basis points, reaching 53.3% compared to 55.0% in 4Q'17.

Gross Profit of Ch$ 32,978 million (US$ 47.5 million) decreased 2.7% in the period.

The Consolidated Gross Profit decreases given that the gross profit of Chile decreases

4.1%, while the subsidiaries as a whole grows 2.9%. The Gross Margin in Chile contracted

by 275 basis points, while the subsidiaries showed an expansion of 247 basis points,

mainly due to the good results in Peru and Colombia.

Chile's gross margin was affected by both the retail business, with a decrease of 244 basis

points, and by the wholesale business, where the margin was reduced by 520 basis

points. The gross margin was affected by greater promotional activity in the market,

where the company had to slightly reduced margins in order not to adversely affect the

company's inventory levels, in fact, these were reduced by 7% in December 2018

compared to the previous year.

Regarding the gross margin of the international subsidiaries, the breakdown by country

is as follows:

• Peru: Gross profit grew by 6.7% and gross margin increased 145 basis points,

reaching 54.4% at 4Q'18 compared to 53.0% in 4Q'17, boosted by the expansion

of gross retail margin, as well as that of the wholesale business. This outstanding

performance is the result of the profitability and margin maximization strategies

that the subsidiary continues to carry out.

• Uruguay: The gross margin expanded by 181 basis points, reaching 59.9% in 4Q'18,

compared to 58.0% in 4Q'17, in line with the company's brand value protection

strategy. It is highlighted that this is the highest gross margin of the operations of

the 4 countries and at the same time the highest that Uruguay has presented in

a quarter, for the last 8 years. However, gross profit decreases by 4.6% in 4Q'18,

given the sales drop of 7.5%.

• Colombia: The gross margin increased strongly by 996 basis points, reaching

52.2%, compared to 42.2% in 4Q'17, aligned with the strategies for maximizing

margins, both in the retail business and in the wholesale business. This is the

highest quarterly gross margin for the last 3 years. Gross profit grew by 27.9%

during 4Q'18.


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• Operating Income of Ch$ 4,804 million (US$ 6.9 million) decreased 35.5%. The

operating margin decreased by 433 basis points, and reached 7.8% of revenues.

This decrease in Operating Income is mainly explained by its decrease in Chile, as well

as to a lesser extent by Uruguay, given that the Operating Income of Peru and Colombia

as a whole grew 271.8%.

The Operating Result of Chile decreased by 36.5% due to the combination of the effect

of the drop in gross profit of -4.1% and the increase of 6.2% in SG&A expenses. The

increase in SG&A is due to the effect of non-dilution of costs given that sales remained

almost constant, growing only 0.9%, and also due to the increase in costs in distribution

and logistics of the digital business, and depreciation of the stores.

The Operational Results by country are as follows:

• Peru: Operating Income grew by 182% in 4Q'18, due to the growth of the gross

profit of 6.7% and the solid decrease in SG&A by -1.2%, which fell 246 basis points

as a percentage of sales. This is the best operating result of the last 4 years (since

3Q'14). Profitability strategies, the positive impact of the process of reducing

deficient square meters, and the positive effect of SSS growth allowed this

remarkable performance.

• Uruguay: The Operating result decreased -83.3%, but in its local currency it

decreased 49.1% in 4Q'18. This decrease is impacted by a fall in sales and higher

operating costs, which increased by 10% in local currency in 4Q'18, mainly due to

the increase in salaries.

• Colombia: The operating result grew an exceptional 698% compared to 4Q'17. This

great improvement is due to the outstanding performance of the Retail and

Wholesale businesses. Both explained by the growth in gross profit of 27.9%,

together with the reduction of SG&A that decreased by 106 basis points as a

percentage of sales, thanks to cost control strategies and the process of reducing

square meters of low contribution carried out during the previous quarters.


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Non-Operating Result

• The non-operating result increased 328%, obtaining a profit of Ch$ 1,591 million (US$

2.3 million) compared to the loss of Ch$ 699 million (US$ 1.0 million) of 4Q'17.

This growth in the Non-Operating Result is mainly explained by the Exchange

Differentials account, which grew 201%, from a loss of Ch$ 891 million (US$ 1.3 million)

in 4Q'17 to a gain of Ch$ 903 million (US$ 1.3 million) in 4Q'18. And to a lesser extent

the growth is explained by the Other Gains and Losses account, which went from a loss

of Ch$ 216 million (US$ 0.3 million) in 4Q'17 to a positive result of Ch$ 512 million (US$

0.7 million) in 4Q'18.

Net Profit and EBITDA

• Earnings for the year amounted to Ch$ 5,159 million (US$ 7.4 million), which

decreased 19.8% with respect to the same quarter of the previous year, with a result

on revenues of 8.3%.

Earnings before taxes only decreased 5.3% for the year, obtaining a result on revenues

of 10.3%. Therefore, the decrease in Earnings for the year is mainly due to the increase

in the tax rate, where income taxes increased by 292.4%.

On the other hand, this decrease in Net Profit is mainly due to the fall of Chile's Net

Profit by 15% and to a lesser extent, due to the drop of net profit in Uruguay. At a

consolidated level, this is explained by the drop in Operating Income of 35.5%, since the

Non-Operating Result improves by 327.5%.

• Ebitda of Ch$ 6,940 million (US$ 10.0 million) decreased 22.0% with respect to 4Q'17.

The Ebitda margin of 11.2% was reduced by 323 basis points.

This fall in Ebitda is explained by 88% due to the fall in Ebitda of the Chilean business

and the rest is explained by the drop in Ebitda in the business of Uruguay. On the other

hand, the EBITDA growth in Peru and Colombia stands out, in line with its good

operating results, which as a whole grows an extraordinary 108% compared to 4Q'17.

Analysis of Financial Statements

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Consolidated Balance Sheet

• Assets (in millions of Ch$)

Dec-2018 Dec-2017

M Ch$ M Ch$ M Ch$ %

Current Assets 196.117 192.690 3.427 1,8%

Non-Current Assets 55.854 44.087 11.766 26,7%

Total Assets 251.970 236.777 15.193 6,4%

Var.

Current assets show significant variations in: inventories, which shows a decrease of Ch$

3,504 million (US$ 5.0 million), due in part, to the rationalization of purchases due to the

economic environment; and other current financial assets, with an increase of Ch$ 8,083

million (US$ 11.6 million), as a result of the lower disbursement for the payment of

merchandise, and the investment of these temporary cash surpluses in mutual funds.

Non-current assets show significant variations in the item of property, plant and

equipment, which is due to the acquisition of several floors of the building of Av. Las Condes,

where the company's headquarters will be moved soon, with a positive variation in the

amount of Ch$ 11,814 million (US$ 17.0 million).

• Liabilities (in millions of Ch$)

Dec-2018 Dec-2017

M Ch$ M Ch$ M Ch$ %

Current Liabilities 29.567 30.841 -1.274 -4,1%

Non-Current Liabilities 1.631 1.719 -89 -5,2%

Shareholder's Equity 220.773 204.217 16.556 8,1%

Total Liabilities 251.970 236.777 15.193 6,4%

Var.

The decrease in current liabilities of Ch$ 1,274 million (US$ 1.8 million) is mainly due to the

payment of financial liabilities, which decreased by Ch$ 505 million (US$ 0.7 million), and

the decrease of other current provisions, which decreased by Ch$ 437 million (US$ 0.6

million), as a result of the payment of obligations that were provisioned at the closing of

the previous year.

Non-current liabilities, meanwhile, do not suffer variations that are different from the re-

expression of obligations due to variation of the currency in which they must be paid and /

or the reclassification of the installments of obligations that are due in the short term.


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• Shareholder’s Equity

The balance of Equity as of December 31st, 2018 and December 31, 2017 is as follows:

Dec-2018 Dec-2017

M Ch$ M Ch$ M Ch$ %

Paid-in capital 24.243 24.243 0 0,0%

Other reserves 15.921 14.576 1.345 9,2%

Retained earnings 179.742 164.527 15.215 9,2%

Non-controlling interest 867 872 -5 -0,5%

Total Equity 220.773 204.217 16.556 8,1%

Var.

Equity presents a total increase of Ch$ 16,556 million (US$ 23.8 million), mainly due to

the integral result of the period.

The variation of the Other Reserves corresponds to the differences in the conversion of

subsidiaries according to the following detail:

M Ch$

Perú Forus S.A. 953

Uruforus S.A. 274

Forus Colombia S.A.S. 35

Lyfestyle Brands of Colombia 84

Total Conversion Differentials 1.345


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Financial Ratios

• Liquidity Ratios

Units Dec-18 Dec-17 Var.

Current liquidity times 6,63 6,25 0,39

Acid ratio times 4,01 3,62 0,39

The current liquidity index shows a positive variation with respect to the previous year and,

the acid ratio shows the same effect, that goes from 3.62 times registered at December

2017 to 4.01 times registered at the end of this fiscal year, which are mainly explained by

the increase in other financial assets and a decrease in current liabilities.

• Debt Ratios

Units Dec-18 Dec-17

Liabilities composition

Current Liabilities % 94,8% 94,7%

Non-Current Liabilities % 5,2% 5,3%


Leverage times 0,14 0,16 -0,02

Interest Coverage times 63,30 69,25 -5,95

94,8% 94,7%

5,2% 5,3%

Dec-18 Dec-17

Non-Current Liabilities

Current Liabilities


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• Profitability Ratios


ROA % 10,1% 11,3% -1,13%

ROS % 10,3% 10,6% -0,32%

ROE % 11,6% 13,1% -1,50%

EPS $ 98,85 103,29 -4,44

Regarding profitability, the Company shows a negative variation of $ 4.44 in earnings per

share with respect to the same period of the previous year, which represents a decrease of

4.3%.

Consolidated Cash Flow

Dec-2018 Dec-2017 Var.

M Ch$ M Ch$ M Ch$

Cash Flow from Operating Activities 52.461 26.913 25.548

Cash flows from (used in) investment activities -35.441 -20.155 -15.286

Cash flows from (used in) financing activities -16.326 -6.340 -9.986

Operating activities generated a positive variation of Ch$ 25,548 million (US$ 36.8 million)

compared to the previous year, whose main variation is due to a lower disbursement for

payment to suppliers and other accounts of the operation for Ch$ 27,264 million (US$ 39.2

million).

The negative variation in the flows of investment activities is mainly due to the higher

disbursement for the purchase of properties, plants and equipment, which shows a

negative variation of Ch$ 10,853 million (US$ 15.6 million), compared to 2018, due to the

acquisition of the new offices where the company will move soon.

Finally, the negative variation in the flow of financing activities is mainly due to lower use

of bank guarantees or letters of credit for the payment of merchandise.


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Market Risk Analysis

Regional Risk: Chile continues in an unfavorable scenario, maintaining the low levels of

market dynamism, and with the levels of consumer confidence and business confidence

falling further during the quarter, noting their lower levels during the year. In addition,

unemployment remained high, and the consumption figures of trade and footwear

decreased during the period. Uruguay continues to present a challenging environment for

business growth. While consumer confidence increases slightly, it remains at the pessimistic

level. Peru maintains its recovery trend, moderating the level of the economic expectations

index, which falls with respect to the second and third quarters, but improving the

consumer confidence index, reaching its highest point during the quarter. Finally, Colombia

maintains its current economic scenario, with inflation levels that remain stable, but with

unemployment that increases slightly, and consumer confidence indexes that fell again. The

environment remains challenging in the country.

Foreign Exchange Risk: In Chile, the volatility of the exchange rate increased, showing a

depreciation of the Chilean peso against the dollar towards the end of the period,

generating an unfavorable effect of the exchange rate for our operation. With respect to

the subsidiaries, exchange rate volatility also increased in all the subsidiaries during the

quarter, with increases in the exchange rate of local currencies compared to the same

period of the previous year.

Financial Risk: The company continues with the policy of conservative management of its

cash, increasing its volume of investment fund during 2018 and maintaining a very low level

of indebtedness.

Summary Table of Countries

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Revenues (Millions Ch$)

4Q '18 4Q '17 Var %

Var % Local

Currency 2018 2017 Var %

Var % Local

Currency

Chile 49.255 48.817 0,9% 0,9% 203.573 205.798 -1,1% -1,1%

Colombia 1.598 1.545 3,5% 2,6% 4.932 5.165 -4,5% -3,3%

Peru 5.447 5.244 3,9% 0,5% 18.880 18.575 1,6% 3,6%

Uruguay 5.653 6.112 -7,5% -3,6% 20.509 21.722 -5,6% 2,5%

Total Filiales 12.698 12.901 -1,6% 44.322 45.462 -2,5%

Same Store Sales

Data in nominal values (in local currency)

2017 2018

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Chile 3,8% 7,3% 4,7% -1,8% -2,9% -5,0% -5,3% 0,2% 3,5% -3,3%

Colombia 4,3% -9,4% -5,8% -7,7% -6,9% 11,2% 6,3% 6,4% -5,1% 4,3%

Peru -9,1% 1,1% 4,1% -4,9% 8,0% 7,5% 13,8% 11,2% -2,4% 10,2%

Uruguay 3,2% 4,5% 4,6% 10,6% 8,6% -7,6% 3,3% -9,4% 6,1% -3,1%

2017 2018

FY

Number of stores and surfaces of square meters

# StoresSurface of sqm # StoresSurface of sqm

Chile 341 39.168 337 38.782

Colombia 51 3.384 54 3.604

Perú 65 5.491 69 5.900

Uruguay 60 4.983 56 4.658

Total 517 53.026 516 52.944

December 2018 December 2017

Data by Country and Business

20

CHILE

• Retail

(Million Ch$)

P&L 4Q '18 % Revenues 4Q '17 % Revenues Var. %

Revenues 44.014 43.734 0,6%

Cost of Sales -20.551 -19.350 6,2%

Gross Profit 23.464 53,3% 24.383 55,8% -3,8%

SG&A -19.188 -43,6% -18.361 -42,0% 4,5%

Operating Income 4.276 9,7% 6.023 13,8% -29,0% (Million Ch$)

P&L 2018 % Revenues 2017 % Revenues Var. %

Revenues 166.229 166.872 -0,4%

Cost of Sales -73.301 -73.400 -0,1%

Gross Profit 92.929 55,9% 93.472 56,0% -0,6%

SG&A -72.274 -43,5% -68.268 -40,9% 5,9%

Operating Income 20.655 12,4% 25.204 15,1% -18,0% Same Store Sales Growth Data in nominal values (in local currency)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018

SSS 3,8% 7,3% 4,7% -1,8% -2,9% -5,0% -5,3% 0,2% 3,5% -3,3%

2017 FY2018

Stores Openings / Closings

Date Chain Stores Sq.meters

Opening oct-18 Columbia Plaza Tobalaba 69

Opening oct-18 Columbia Coyhaique 98

Opening oct-18 Merrell Coyhaique 117

Opening oct-18 Caterpillar Iquique 84

Closing oct-18 We Love Shoes Plaza La Serena 60

Opening nov-18 Merrell Puerto Varas 80

Closing nov-18 Nine West Estado 29

Opening dic-18 Columbia La Fábrica 196

Opening dic-18 Caterpillar La Fábrica 205

Opening dic-18 Burton Puerto Varas 44

Opening dic-18 Merrell Plaza La Serena 74

Opening dic-18 Azaleia Talca 30

Closing dic-18 7Veinte Principe de Gales 180

Closing dic-18 We Love Shoes Plaza Norte 80

Total 648


21

Change in Total square meters

December 2018 December 2017 Var. 18/17 Var. %

N° Stores 341 337 4 1,2%

Square meters sales area + window 39.168 38.782 386 1,0%

• Wholesale

(Million Ch$)


Revenues 5.241 5.084 3,1%

Cost of Sales -2.909 -2.558 13,7%

Gross Profit 2.332 44,5% 2.526 49,7% -7,7%

SG&A -2.477 -47,3% -2.044 -40,2% 21,2%

Operating Income -145 -2,8% 482 9,5% -130,2%

(Million Ch$)


Revenues 37.344 38.926 -4,1%

Cost of Sales -18.836 -20.008 -5,9%

Gross Profit 18.508 49,6% 18.918 48,6% -2,2%

SG&A -9.571 -25,6% -10.244 -26,3% -6,6%

Operating Income 8.937 23,9% 8.674 22,3% 3,0%

• Total Chile (Retail + Wholesale)

(Million Ch$)


Revenues 49.255 48.817 0,9%

Cost of Sales -23.460 -21.908 7,1%

Gross Profit 25.795 52,4% 26.909 55,1% -4,1%

SG&A -21.665 -44,0% -20.405 -41,8% 6,2%

Operating Income 4.130 8,4% 6.504 13,3% -36,5%

(Million Ch$)


Revenues 203.573 205.798 -1,1%

Cost of Sales -92.137 -93.408 -1,4%

Gross Profit 111.437 54,7% 112.390 54,6% -0,8%

SG&A -81.844 -40,2% -78.513 -38,2% 4,2%



22

COLOMBIA

(Million Ch$)


Revenues 1.598 1.545 3,5%

Cost of Sales -764 -893 -14,4%

Gross Profit 834 52,2% 652 42,2% 27,9%

SG&A -631 -39,5% -627 -40,6% 0,8%

Operating Income 202 12,7% 25 1,6% 697,5%

(Million Ch$)


Revenues 4.932 5.165 -4,5%

Cost of Sales -2.555 -2.958 -13,6%

Gross Profit 2.377 48,2% 2.207 42,7% 7,7%

SG&A -2.431 -49,3% -2.765 -53,5% -12,1%

Operating Income -54 -1,1% -558 -10,8% -90,3%

Same Store Sales Growth

Data in nominal values (in local currency)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018

SSS 4,3% -9,4% -5,8% -7,7% -6,9% 11,2% 6,3% 6,4% -5,1% 4,3%

2017 FY2018

Store Openings / Closings

Date Chain Store Sq.meters

Closing oct-18 D House Viva Wajira 104

Total 104



N° Stores 51 54 -3 -5,6%

Square meters sales area + window 3.384 3.604 -220 -6,1%


23

PERÚ

(Million Ch$)


Revenues 5.447 5.244 3,9%

Cost of Sales -2.481 -2.465 0,7%

Gross Profit 2.965 54,4% 2.779 53,0% 6,7%

SG&A -2.628 -48,2% -2.659 -50,7% -1,2%

Operating Income 337 6,2% 120 2,3% 181,6%

(Million Ch$)


Revenues 18.880 18.575 1,6%

Cost of Sales -8.666 -9.036 -4,1%

Gross Profit 10.214 54,1% 9.539 51,4% 7,1%

SG&A -9.697 -51,4% -10.386 -55,9% -6,6%

Operating Income 517 2,7% -847 -4,6% -161,0%

Same Store Sales Growth Data in nominal values (in local currency)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018

SSS -9,1% 1,1% 4,1% -4,9% 8,0% 7,5% 13,8% 11,2% -2,4% 10,2%

2017 FY2018

Store Openings / Closings There were no openings or closings during this quarter



N° Stores 65 69 -4 -5,8%

Square meters sales area + window 5.491 5.900 -409 -6,9%


24

URUGUAY

(Million Ch$)


Revenues 5.653 6.112 -7,5%

Cost of Sales -2.270 -2.565 -11,5%

Gross Profit 3.384 59,9% 3.548 58,0% -4,6%

SG&A -3.250 -57,5% -2.747 -44,9% 18,3%

Operating Income 134 2,4% 800 13,1% -83,3%

(Million Ch$)


Revenues 20.509 21.722 -5,6%

Cost of Sales -8.687 -9.432 -7,9%

Gross Profit 11.822 57,6% 12.290 56,6% -3,8%

SG&A -10.632 -51,8% -10.141 -46,7% 4,8%


Same Store Sales Growth Data in nominal values (in local currency)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018

SSS 3,2% 4,5% 4,6% 10,6% 8,6% -7,6% 3,3% -9,4% 6,1% -3,1%

2017 FY2018

Store Openings / Closings

Date Chain Store Sq.meters

Opening dic-18 Rockford Punta Carretas 93

Total 93 Change in Total square meters


N° Stores 60 56 4 7,1%

Square meters sales area + window 4.983 4.658 325 7,0%

Consolidated Balance Sheets

25


Th Ch$ Th Ch$

ASSETS

Current Assets

Cash and cash equivalents 5.258.872 4.365.036

Other financial assets, current 83.505.075 75.421.967

Other non-financial assets, current 3.469.235 4.670.445

Trade and other account receivables 23.587.907 22.917.676

Accounts receivables from related companies 366 728

Inventories 77.603.656 81.107.972

Tax Assets, current 2.691.669 4.206.129

Total Current Assets 196.116.780 192.689.953

Non-Current Assets

Other financial assets, Non-current 24.992 24.082

Other non-financial assets, Non-current 2.588.933 2.510.947

Fees receivables, Non-current 206.292 184.291

Investments in Associated 1.946.292 2.119.934

Net intangibles assets 1.790.696 2.121.096

Goodwill 5.426.310 6.026.310

Property, plant and equipments 41.330.639 29.516.461

Deferred tax Assets 2.539.519 1.584.262

Total Non-Current Assets 55.853.673 44.087.383

TOTAL ASSETS 251.970.453 236.777.336

LIABILITIES

Current Liabilities

Other financial liabilities, current 2.004.614 2.509.939

Current trade and other current accounts payable 13.598.897 13.758.364

Current accounts payable to related companies 967.253 1.040.954

Other current Provisions 5.831.046 6.268.537

Current Provisions for employees benefits 5.885.542 5.271.454

Other non-financial liabilities, current 1.279.746 1.991.597

Total Current Liabilities 29.567.098 30.840.845

Non-Current Liabilities

Other non-current financial liabilities 1.624.700 1.711.367

Other non-financial non-current liabilities 5.808 8.067

Total Non-Current Liabilities 1.630.508 1.719.434

TOTAL LIABILITIES 31.197.606 32.560.279

SHAREHOLDER'S EQUITY

Paid-in capital 24.242.787 24.242.787

Retained earnings 179.742.259 164.526.777

Issue Premium 17.386.164 17.386.164

Other reserves (1.465.344) (2.810.404)

Equity attributable to equity holders of the parent 219.905.866 203.345.324

Non-controlling interest 866.981 871.733

Total Net Equity 220.772.847 204.217.057

TOTAL NET EQUITY AND LIABILITIES 251.970.453 236.777.336


CONSOLIDATED BALANCE SHEETS

expressed in Thousands of Chilean Pesos, as for

Consolidated Income Statement

26

and for the quarters

December 2018 December 2017 4Q'18 4Q'17

Th Ch$ Th Ch$ Th Ch$ Th Ch$

Revenues 247.711.908 250.961.861 61.915.175 61.632.269

Cost of Sales (111.862.334) (114.536.336) (28.937.102) (27.744.594)

Gross Margin 135.849.574 136.425.525 32.978.073 33.887.675

Other incomes of total operation 411.947 1.523.302 76.593 219.689

Logistic costs (2.859.732) (2.757.073) (474.046) (610.819)

Administrative Expenses (101.745.240) (99.047.655) (27.699.847) (25.827.129)

Other expenses of total operation (83.909) (595.297) 184.253 (116.463)

Other gains or (losses) 578.097 (335.593) 512.081 (215.790)

Financial Income 1.207.960 1.156.052 (87.523) 392.727

Financial Expenses (403.611) (385.487) (87.610) (93.466)

Participation in gains (losses) of joint venture businesses accounted (257.584) (171.823) 60.453 (43.299)

by using the proportional value of participation

Exchange Differentials 1.729.477 (1.387.816) 902.859 (891.059)

Result of Indexation units 42.186 37.363 30.292 48.220

Profit before income tax 34.469.165 34.461.498 6.395.578 6.750.286

Income Taxes (8.918.974) (7.764.969) (1.236.844) (315.202)

Profit (loss) 25.550.191 26.696.529 5.158.734 6.435.084

Profit (loss) attributable to equity holders of parent 25.550.191 26.994.316 5.073.129 6.430.826

Profit (loss) attributable to minority interest (37.784) (297.787) 85.605 4.258

Profit (loss) 25.550.191 26.696.529 5.158.734 6.435.084

Income per Share Commom shares $ 98,9 $ 103,3 $ 20,0 $ 24,9

expressed in Thousands of Chilean Pesos for the end of the periods of


CONSOLIDATED INCOME STATEMENT

Consolidated Cash Flow Statement

27


Th Ch$ Th Ch$

Cash Flows Originating from (used in) Operating Activities

Types of Earnigns from operating activities

Earnigns from sales of goods and rendering of services 291.980.286 289.411.889

Earnigns from Premiums and benefits, annual payments and other benefits

of subscribed policies 215.045 113.903

Other earnings from operating activities 512.092 150.195

Types of Payment

Payments to suppliers for the supply of goods and services (177.523.171) (204.786.989)

Payments to and on behalf of employees (37.199.114) (34.562.285)

Payments for premiums and benefits, annuities and other obligations

derived from the policies subscribed (104.239) (59.936)

Other payments for operating activities (235.895) (493.216)

Net cash flows originating from (used in) the operation 77.645.004 49.773.561

Income taxes paid (reimbursed), classified as operating activities (8.659.363) (7.330.124)

Other cash inflows (outflows), classified as operating activities (16.524.684) (15.530.364)

Cash flows from (used in) operating activities 52.460.957 26.913.073

Cash Flows Originating from (used in) investment activities

Purchases of property, plant and equipment, classified as investment activities (17.181.067) (6.328.535)

Cash flows from sales of intangible assets, classified as investment activities - -

Purchases of intangible assets, classified as investment activities (43.395) (188.356)

Purchases of other long-term assets classified as investment activities (472.416) (353.009)

Dividends received, classified as investment activities 1.581 60.486

Interest received, classified as investment activities 155.736 113.569

Other cash inflows (outflows), classified as investment activities (17.901.456) (15.222.484)

Cash flows from (used in) investing activities (35.441.017) (20.155.122)

Cash Flows Originating from (used in) financing activities

Amounts from short-term loans 24.473.905 33.635.239

Loans Reimbursements, classified as financing activities (30.055.927) (29.404.357)

Dividends paid, classified as financing activities (10.678.611) (10.558.528)

Interest paid, classified as financing activities (65.361) (24.337)

Other cash inflows (outflows), classified as financing activities - 11.492

Cash flows from (used in) financing activities (16.325.994) (6.340.491)

Increase (decrease) in cash and cash equivalents, before the effect

of the changes in the exchange rate 693.946 417.460

Effects of the Exchange Rate Variation on Cash and Cash Equivalents

Effects of the Exchange Rate Variation on Cash and Cash Equivalents 199.890 (120.512)

Increase (decrease) of the Cash and Cash Equivalents 893.836 296.948

Cash and Cash Equivalents (Initial Balance) 4.365.036 4.068.088

Cash and Cash Equivalents (Final Balance) 5.258.872 4.365.036

FORUS S.A.

INDIVIDUAL CASH FLOWS STATEMENT

expressed in Thousands of Chilean Pesos, as for

Forus S.A.

28

Address:

Av. Departamental Nº 01053

La Florida

Santiago, Chile

Contact:

Ricardo San Carlos

Investor Relations

Telephone: (56 2) 2 923 3035

Email: [email protected]

Website:

www.forus.cl

Go to the Investors menu.

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