Agenda. 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan Strategy 6. Chile Consumption Overview

Transcription

1 2015

2 Agenda 1. Company Overview 2. Financial Summary 3. Company Comparison 4. Investment plan Strategy 6. Chile Consumption Overview 2

3 Key Metrics Brand Builder & Specialty Retailer 31 Brands and 19 different concepts of Retail stores 485 stores in Chile, Peru, Uruguay and Colombia 3,735 employees 1 High level of Cash (MM US$ 79.2) and low level of Debt (Leverage of 0.13) 2 Sales per Category 2014 Apparel 21% Accesories 7% Ratios 2014 Ratios 1S 15 9,1% 14,8% 10,3% Revenues by Subsidiaries 1S 15 Perú 8,2% Colombia Uruguay 2,3% 7,3% 17.8% # Stores per Country Uruguay Colombia Peru Chile 485 Footwear 72% Retail Chile 82,2% ROA ROS ROE S15 1 As of July 2015, 2 As of June

4 Concept Stores Brand Building in LatAm N Stores % of total Sales 82,2% 8,2% 7,3% 2,3% Sales* US$ MM US$ 15.3 MM US$ 13.7 MM US$ 4.3 MM # Concept stores Population MM 30 MM 3 MM 46 MM GDP / capita 2014** US$ 14,528 US$ 6,551 US$ 16,807 US$ 7,904 *Figures as of June 2015, in US$ converted using the July 1, 2015 USD/CLP 639,04 exchange rate. MM = million. **International Monetary Fund, World Economic Outlook Database,

5 International Licensors 25 Brands 31 Brands under Management Wolverine World Wide (USA) Columbia Sportswear (USA) Jones New York Group (USA) Brooks (USA) Patagonia (USA) Jansport (USA) Burton (USA) Skullcandy (USA) Dakine (USA) Azaleia (Brazil) Church s (England) Burleigh Point Ltd (Australia) Forus Own Brands 6 Brands 5

6 Brand Brand Positioning Positioning by Concept by Concept Fashion / Dress Casual / Urban Jansport Nine West Keds Azaleia Pasqualini Skullcandy Cushe We Love Shoes Church s Sorel Caterpillar Hush Puppies Sperry Just Smile Calpany Hush Puppies Kids Sebago Dakine Billabong Burton Element Rockford Brooks Merrell Sport Montrail Patagonia Columbia Mountain Hardwear Outdoor 6

7 19 Stores Concepts Wide Store Concept Portfolio Multi-Brand 47% Mono-Brand 53% 7

8 Forus History: 35 years of experience Alfonso Swett S. start with Hush Puppies in Chile with 70% of participation. 30% was in WWW hands Footwear s factory in Chile Construction Alfonso Swett S. buys the remaining 30% from WWW Enter in Uruguay Calpany acquisition Born of name Forus S.A. New stores Forus is opened in the stock market. Enter in Peru Azaleia and Norseg acquisition New stores Enter in Colombia. Acquisition in Uruguay of Hush Puppies Peru operation acquisition New stores New stores New Distribution Center in Chile JV with WWW in Colombia for the brands e-commerce Acquisitions: New stores New brand apparel New Brand New Chain New Brand& Chain 8

9 Forus Management Board Alfonso Swett S. (35) President CEO Gonzalo Darraidou (15) Alfonso Swett O. (22) Executive Director Head of IR Macarena Swett (7) Investor Relations Jeanne Marie Benoit (2) Corporate CFO Marisol Céspedes (18) Commercial and MKT Manager Sebastián Swett (26) Corporate Retail Real State Manager Claudio Cabrera (12) Uruguay CEO Juan Strauch (10) Colombia CEO Alejandro Cruz (7) Peru CEO Gabriel Zerene (0) Retail Manager Matías Topali (9) Factory Manager Carlos Espinoza (9) Planning Manager Carlos Díaz (9) HR & Legal Manager Manuel Somarriva (7) L&D Manager Patricio Ramírez (9) Heriberto Urzúa Sanchez Ricardo Swett Saavedra Francisco Gutierrez Philippi Matko Koljatic Maroevic John Stevenson () Number of years working in the Company 9

10 Forus Corporate Structure FORUS S.A. Uruforus SA Uruguay 100% Peruforus SA Peru 100% Forus Colombia SAS Colombia 51% LBC SAS Colombia 49% 10

11 Ownership Structure December 2008 August 2015 Institutional Investors 4,6% Brokers 7,5% Others 0,6% Institutional Investors 7,0% Brokers 3,7% Others 0,4% Investment Funds 16,1% Investment Funds 20,8% Companies related to Costanera 6,6% Costanera 64,6% Companies related to Costanera 5,1% Costanera 63,0% Free Float: 28,9% Free Float: 31,9% Free Float 28,9% Free Float 31,9% Controlling Group 71,1% Controlling Group 68,1% 11

12 Our International Recognition Last 5 years awards received, for the whole world, full year Excellence in Brand Building Best Distributor of the world Best Distributor for the brands Best Distributor for the brands Ken Goi Award Highest Revenue s Growth in Apparel and Accessories Apparel Best Executive Apparel Highest Revenue s Growth in the countries Outstanding Performance Apparel Best Distributor Highest Growth in Latin America Highest Revenue s Growth for the brand Best Executive Highest Brand Value Outstanding Sales Best Revenues Growth Best Distributor of the World in the countries Best WWW Initiative JV Apparel 12

13 Forus Social Responsibility 13

15 Consolidated Income Statement MM Ch$ 1S'15 1S'14 Var % 2Q'15 2Q'14 Var % Revenues ,8% ,7% Gross Profit ,5% ,1% Gross Margin 54,6% 57,0% (2,5) 57,3% 58,8% (1,5) SG&A Expenses (44.276) (41.073) 7,8% (22.248) (21.424) 3,8% SG&A / Revenues (37,1%) (35,1%) (2,0) (37,5%) (34,8%) (2,7) Operating Income ,0% ,5% Operating Margin 17,5% 22,0% 19,8% 24,0% Other incomes / (Expenses) Net Financial Income / (Cost) (111) 168 (25) 207 Profit / (Loss) in Associates (92) Exchange Rate Differentials Results of Indexation units 13 (52) 13 (30) Others Non-Operating Income ,5% ,0% Profit before income Tax ,5% ,5% Income Tax (5.056) (5.540) (2.857) (3.042) Minority Interest (95) (166) (26) (61) Net Profit ,7% ,6% ROS (%) 14,8% 18,7% 17,1% 19,7% Depreciation + Amortization EBITDA ,0% ,8% EBITDA Margin 20,3% 24,6% 22,4% 26,6% 15

16 Consolidated Balance Sheets MM Ch$ Jun 15 Dec 14 MM Ch$ Jun 15 Dec 14 Cash and cash equivalents Other financial liabilities, current Other financial assets, current Current trade and other current accounts payable Other non-financial assets, current Current accounts payable to related companies Trade and other account receivables Other current Provisions Accounts receivables from related companies 3 7 Current tax liabilities - - Inventories Current Provisions for employees benefits Tax Assets, current Other non-financial liabilities, current Total Current Assets Total Current Liabilities Other financial assets, Non-current Other non-current financial liabilities Other non-financial assets, Non-current Other non-current accounts payable - - Fees receivables, Non-current Deferred taxes liabilities - - Investments in Associated Other non-financial non-current liabilities 8 41 Net intangibles assets Total Non-Current Liabilities Goodwill Property, plant and equipments TOTAL LIABILITIES Deferred tax Assets Total Non-Current Assets Total Net Equity TOTAL ASSETS TOTAL NET EQUITY AND LIABILITIES

17 Forus SSS by Country 25% SSS Chile 10,1% 18,7% 8,3% 5,3% 5,3% Colombia 9,4% 15,3% 8,0% 9,3% 8,7% Peru 2,0% 20,7% 16,5% 4,2% -6,3% Uruguay 7,2% 20,3% 9,5% -8,0% 3,1% 20% 15% 10% 5% 0% -5% -10% -15% 18,2% 14,3% 12,8% 11,9% 10,5% 12,6% 8,9% 9,9% 6,3% 4,3% 8,4% 4,4% 4,7% 5,9% 5,9% -1,3% 2,1% 4,2% 3,2% 4,4% 2,2% 3,7% 2,3% 2,6% 0,2% 0,9% 0,8% -1,8% -6,7% -2,8% -5,7% -5,1% -6,4% -6,3% -6,9% -6,4% -8,0% -9,4% -9,7% -12,0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Chile Colombia Peru Uruguay 17

18 Growing Sales - Forus Consolidated ,8% S'14 1S'15 Historical Data in MM US$ (July 1, 2015 USD/CLP at $639.04) 18

19 EBITDA Margin Forus Consolidated 14,7% 17,6% 19,0% 18,3% 16,3% 20,7% 26,5% 24,9% 24,9% 21,2% 24,6% 20,3% ,0% EBITDA Margin EBITDA (MM US$) S'14 1S'15 Historical Data in MM US$ (July 1, 2015 USD/CLP at $639.04) 19

20 Net Income - Forus Consolidated 20,0% 16,0% 18,4% 19,6% 15,7% 18,7% 14,8% 11,1% 10,2% 11,1% 9,4% 7,6% ,7% ROS Net Income (MM US$) S'14 1S'15 Historical Data in MM US$ (July 1, 2015 USD/CLP at $639.04) 20

21 Number of Stores opened Stores Opening Rate Net Openings Openings Net Op. (5 years Average) Focus on efficiency improvement which is correlated with the number of stores opened ,5% 39,8% 70 37,8% 38,0% ,2% 34,7% 35,8% 36,7% URUGUAY COLOMBIA PERÚ CHILE Operational Cost / Revenues 21

23 E-BAY LVMH LULULEMON NEXT PLC INDITEX (ZARA) FORUS H&M GRENDENE (BRA.) KERING (PPR) FOSSIL GROUP VF CORPORATION GRIMOLDI (ARG.) FASA AREZZO (BRA.) GAP ROSS STORES URBN RESTOQUE (BRA.) THE TJX COMPANIES WILLIAMS-SONOMA MACY'S UNDER ARMOUR FALABELLA FOOT LOCKER FAST RETAILING (UNIQLO) JIMMY CHOO COLUMBIA HITES AMERICAN EAGLE SKECHERS PVH CORP. WOLVERINE WW INC. ABERCROMBIE D&S (WALMART CHILE) IN RETAIL (PERÚ) JUMEI.COM AZALEIA/VULCABRAS GENESCO ALMACENES ÉXITO (COL.) AD RETAIL (ABCDIN) CENCOSUD BROWN SHOE COMPANY RIPLEY CORP ASOS AMAZON CROCS SMU LA POLAR EBITDA Margin 2014 Among the Most Efficient Worldwide 30% 25% 20% 15% 10% 5% 0% -5% 23

24 Ebitda Margin Ebitda Ebitda Margin Margin above the vs. Industry Exchange in Chilerate Ebitda Margin vs. Exchange rate 30% 25% 20% 15% 10% 5% 18,3% 9,7% 16,3% 8,0% 20,7% 11,4% 26,5% 11,1% 24,9% 24,9% 9,6% 10,3% 11,4% 21,2% ,3% ,4% 500 Exchange Rate 0% S15 Forus Retail Players Average* USD$ 400 * Falabella, Paris, Ripley and Hites 24

26 2015 Stores Opening Plan and Capex Evolution Capex 2015 US$ 10 MM 25 Stores 11 6 Chile Peru Colombia Uruguay 8 0 Capex Evolution New Distribution Center In Chile Billabong & 7veinte s acquisition Other (US$ MM) Capex (US$ MM) # Gross Stores Opened

28 How we will continue Growing Organic Growth Inorganic Growth International Expansion 28

29 Core Business Focus on Retail Excellence Efficiency Financial Strength Recognized Brands Profitable Growth Our People Customer Oriented Quality Products 29

30 Footwear Market Share in Chile 192 bp improvement in Market share in 2014 regarding 2013 and 292 bp from 2012 FALABELLA 4,7% ADIDAS 5,6% US $ FOB 2013 SKECHERS WALMART 3,5% 2,9% PARIS 2,6% Others 59,0% PARIS 2,6% SKECHERS 2,7% WALMART 3,7% FALABELLA 4,5% ADIDAS 5,9% US $ FOB 2014 Others 58,0% NIKE 6,7% NIKE 6,2% BATA 8,7% BATA 8,0% FORUS 10,2% FORUS 12,1% Source: Market share according to import costs US $ FOB (CCS) 30

31 Chile Stores Distribution Store Distribution Evolution Stores, Malls and Concept Stores Evolution in Chile % 44% 49% 49% 55% 56% 51% 51% Region Santiago ,8 3,7 3,7 2,9 2,8 2, % 30% 28% 19% 67% 70% 72% 81% Mall Street Last 3 Years Average Opening Distribution Santiago 50% Street 13% N of malls Total Stores Concepts of stores Stores/mall Region 50% Mall 87% 31

32 E-Commerce Strategy May-13 Sep-13 Nov-13 Jan-14 May-14 Oct-14 Jul-15 32

33 E-Commerce E-commerce Stages Strategy Websites Social Network Mobile Platform Products list Products description Products description Shopping bag 33

34 InStore E-Commerce InStore Payment As E-Commerce Shopping Integrated & Complemented Online Channel Offline Channel July 20 in Costanera Center s Caterpillar Store 34

35 Focus on our Customers Lifestyle-Trends 35

37 Economic and Weather impact on Chilean SSS 10% Nominal SSS Var. in Chile % of Sales 1S15 SSS per Zone North 1Q15 2Q15 1S15 Economy 0,8% 61% R.M. 46% Central Economy -3,4% 1Q15 2Q15 1S15 Weather -6,4% 1Q15 2Q15 1S15 South 29% Economy 1Q15 2Q15 1S15 RM= Metropolitan Region

38 Metropolitan Region - Chile Weather 30,9 30,7 13,8 14,1 29,8 30,0 29,3 27,5 26,2 23,7 20,8 19,6 18,9 13,4 12,6 14,2 12,4 10,6 8,7 6,6 5,9 5,0 2,2 1,6 Jan Enero Febrero Marzo Apr Abril Mayo Junio 4,7ºC Max 2015 Max 2014 Max Hist Min 2015 Min 2014 Min Hist 1S15 Temperature > 1S14 Temperature > Hist. Average Temperature Average Temperature (ºC) 1S15 1S14 Historical Average Change 1S15 vs 1S14 Maximum 26,1 24,2 23,2 2,0 Minimum 9,2 8,6 7,6 0, Ski Season Launch: 17 Julio June vs. June Source: Accuweather 38

39 Chile Economic Outlook Consumer 1 & Companies 2 Lower Confidence ,1 37,2 IMCE IPEC 39,7 33,9 Jun-15 Ago-15 Economy lower expectatives 4 5,8% 5,8% 5,5% 4,2% 3,0% 3,5% 1,9% 2,3% E 2016E 2017E Chilean Loans Demand Deceleration 3 Unemployment Upward Trend 5 18% 13% Nominal Loans Y/Y % Var. Companies Consumer 6,6 6,5% 8% 4,3% 3% 1,8% -2% ,6% 1,1% Jun-15 Ago-15-7% 6,1 5, Ago-15 Source: 1 Adimark, 2 Icare, 3 Banco Central de Chile, 4 LatinFocusConsensus, 5 INE (IPEC=Consumer Confidence Index; IMCE=Companies Confidence Index) 39

40 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 position, business strategy, management plans and objectives for future operations of the Company. And as such, they are subject and / or affected to a variety of contingencies, (among others, competition in the sector, preferences and trends in consumer spending, economic and legal conditions in the country, restrictions on free trade and / or political instability in the markets in which the company operates), difficult to predict, that could cause ultimately these projections will not really occur. Therefore, the Company does not guarantee total effectiveness of such forward-looking, they may differ from what is reported here, not being this responsibility of the company or its management. 40

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