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August 2020
Agenda
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
2
Agenda
ROA7.4%
ROS9.9%
ROE10.0%
EBITDA Mg16.5%
2019 Ratios
Chile80.8%
Uruguay 8.5%
Peru 8.7%Colombia 2.0%
2019 Revenue by Country
25 Store Concepts of retail chains
1As of June 30th 2020, 2 Converted to USD using average LTM June 30th 2020 exchange rate of 771,5 CLP/USD. 3 Stock price ($972) and FX (784,3 CLP/USD) as of August28th 2020, 4Cash converted to USD using end of quarter (July 1st 2020) exchange rate of 821.2 CLP/USD.
Forus at a glance: omnichannel retailer & brand builder
28 Brandsin our portfolio
519 Storesin 4 countries 1
US$ 252 millionin Revenue LTM June 30th 20202
US$ 320 million in Market Cap3
32 e-Commerce SitesMono-brand & multi-brand
41 Int. Awardsfor Brand Building & Retail
Excellence (2011 – 2019)
CAGR sales 11%nominal 2005-2019
Solid Balance Sheet1: US$ 96 million in cash4 and Net financial debt/Ebitda of -1.3x.
19,2%
Footwear 67%
Apparel 25%
Accesories 8%
2019 Revenue by Category
COLOMBIA
PERU
CHILE URUGUAY
COLOMBIA
PERU
CHILE
URUGUAY
# stores 2Q20
% of total sales 2Q20
Sales LTM 2Q20 (USD mn)*
# store concepts 2Q20
# of websites 2Q20
# of brands 2Q20
* Sales figures converted to USD using average LTM June 30th 2020 exchange rate of 771.5 CLP/USD.
Snapshot by country
4
342
80.7%
$201.9
20
19
25
66
2,6%
$21,4
11
4
12
58
16,0%
$23.4
10
6
13
53
0.7%
$4.9
4
3
3
CHILE PERU URUGUAY COLOMBIA
StoreConcepts
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
39 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 (4)
Forus Peru CEOGonzalo Sotomayor (10)**
CEOSebastián Swett O. (31)
BoardAlfonso Swett S. (40)
Chairman
Alfonso Swett O. (27)
Heriberto Urzúa S. (25)
Ricardo Swett S. (20)
Macarena Swett O. (1)
Francisco Gutierrez P. (10)
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 six years, two as Colombia CEO. ** Mr. Sotomayor has been at Forus for nine years, four as Peru CEO.
7
CFOFrancisco Del Río ( 1)
Dir
ect
ors
COOMarisol Céspedes (23)
Committee to be
Brand Business Manager Lifestyle/Outdoor
Juan Pablo Dussaillant (20)
Brand Business Manager Outdoor/Active
Francisco Arrighi (6)
Retail ManagerMatias Topali (14)
Head of Investor RelationsIsabel Darrigrandi ( 1)
Logistics ManagerPatricio Ramírez (13)
Dir
ect
ors
’ C
om
mit
teeCatalina Cabello R. (President)
Heriberto Urzúa Sanchez
Ricardo Swett Saavedra
HR & Legal ManagerManuel Somarriva (12)
Forus Uruguay CEOJuan Strauch (19)
Forus Colombia CEOPablo Muxi (6)*
2019 sales per brand concept
8% of consolidates sales.
Casual48%Outdoor
39%
Action Sports11%
Fashion2%
1. Company Overview
2. Retail and Brand Leadership
3. Strategy
4. Key Financial Metrics
Agenda
9
Agenda
2019 Ebitda margin – among the most profitable worldwide
10
0%
5%
10%
15%
20%
25%
30%
E-B
AY
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FALA
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.)
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Excludes banking results, where applicable
Ebitda Margin vs. Exchange rateEbitda margin above the industry in Chile
• Retail Average: Falabella, Cencosud , Ripley and Hites. Exchange Rate: average annual CLP/USD. EBITDA in 2019 includes 11
19.0% 18.3%16.3%
20.7%
26.5%24.9% 24.9%
21.2%
18.3% 17.4%16.2% 15.2%
16.5%
10.5% 9.7%7.6%
11.2% 10.7%
7.9%10.3%
11.4%9.4%
10.5%9.3% 9.7% 9.7%
522 523 559
510 484 487 495
570
654 677 649 640
703
0
100
200
300
400
500
600
700
800
0%
5%
10%
15%
20%
25%
30%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EBITDA Margin vs USD/CLP
FORUS Retail Players, Average FX
Forus Chile: outperformance over time
“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, 2019: 748.7.
12
1.4x 1.5x 1.5x 1.5x 1.4x 1.4x 1.4x
Sales per square meter
3.893 3.857 3.797 3.8254.078 4.154 3.983
3.756
5.3675.690 5.856
5.5475.769 5.912
5.696
5.089
2012 2013 2014 2015 2016 2017 2018 2019
Retail Players Avg.* Forus Chile
1.4x
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 omnichannel specialty retail in footwear,apparel and accessories, both in Chile and abroad, by earning ourcustomers’ 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
(2010-2019)**
7.4%
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
7 in
De
ve
lop
men
t
14 N
ich
e B
ran
ds
Big
7
Wolverine Worldwide
Columbia Sportswear
AB Group
Brooks
Patagonia
VF Corporation
Burton
Dakine
Vulcabras Azaleia
Church’s
Boardriders
21
Bra
nd
s
7 B
ran
ds
… based on solid, diversified partnerships.
17
LICENSORS BRANDS FORUS PROPRIETARY BRANDS
Aldo Group
Consumer-centric, omnichannel portfolio25
S
tore
Co
nce
pts
Mono-Brand
Multi-Brand 60%**
40% **
18*. Store chains with e-commerce web sites (Zapatos.cl and Zapatillas.cl are exclusively online stores). **As a % of total stores as of June 2020.
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
Consumer Experience (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 Chile.
• 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 2019.
• Online traffic aggregators (+ last mile and payment services). New sales channels with the same inventory. Currently participating in Dafiti, Mercado Libre and Mercado Ripley, among others.
• 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).
179% YoY growth 89% of DTC sales (72% of total sales)
Omnichannel growing triple digits in Chile
+6.2 million likes & followers in Chile
Actively interacting with our Social Media(December 2019)32 e-commerce sites
Brand sites and multi-brand sites
e-commercein 4 countries in the region
21
Forus’ e-commerce: growth gained momentum in 2Q20
63% YoY growth 8% of DTC sales
2Q20
2019
CHILE SUBSIDIARIES (2Q20)
Uruguay: 373% YoY growth 56% of total sales
Colombia: 2,028% YoY growth 73% of total sales
Peru: 6,117% YoY growth (June)85% of total sales (June)
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 2Q20 2Q19 Var % 6M20 6M19 Var %
Revenues 22.768 66.169 -65,6% 71.281 122.392 -41,8%
Gross Profit 11.062 37.234 -70,3% 35.588 66.758 -46,7%
Gross Margin 48,6% 56,3% 49,9% 54,5%
SG&A Expenses (15.492) (26.841) -42,3% (40.710) (51.397) -20,8%
SG&A / Revenues (68,0%) (40,6%) (57,1%) (42,0%)
Operating Income (4.430) 10.393 -142,6% (5.122) 15.361 -133,3%
Operating Margin -19,5% 15,7% -7,2% 12,6%
Other Income / (Expense) 41 26 59,8% 420 10.991 -96,2%
Net Financial Income / (Expense) 745 1.648 -54,8% (1.963) 2.585 -176,0%
Profit / (Loss) in Associate Companies (56) (38) 47,1% (140) (121) 15,2%
Exchange Rate Differentials (179) 85 -311,7% 3.739 (453) -925,1%
Monetary Correction (2) 7 -127,4% (25) 3 -840,5%
Other 221 204 8,3% 255 186 37,1%
Non-Operating Income 769 1.931 -60,2% 2.286 13.190 -82,7%
Profit before Income Tax (3.661) 12.324 -129,7% (2.837) 28.552 -109,9%
Income Tax 1.117 (3.339) 850 (8.048)
Profit (2.544) 8.985 -128,3% (1.987) 20.503 -109,7%
Profit Margin (%) -11,2% 13,6% -2,8% 16,8%
Profit (loss) attributable to equity holders of parent (2.435) 9.034 -127,0% (1.803) 20.618 -108,7%
Margin (%) -10,7% 13,7% -2,5% 16,8%
Profit (loss) attributable to minority interest (109) (49) 122,9% (184) (115) 59,9%
EBITDA 449 15.129 -97,0% 5.128 24.855 -79,4%
EBITDA Margin 2,0% 22,9% 7,2% 20,3%
Consolidated Balance Sheet
25
Ch$ million Jun-20 Dec-19 Ch$ million Jun-20 Dec-19
Cash and cash equivalents 11.314 10.758 Other financial liabilities, current 13.858 13.961
Other financial assets, current 67.143 80.963 Current trade and other current accounts payable 12.429 15.751
Other non-financial assets, current 3.533 4.051 Current accounts payable to related companies 571 652
Trade and other account receivables 16.392 26.381 Other current provisions 2.001 5.384
Accounts receivables from related companies 3 0 Current tax liabilities - -
Inventories 86.365 77.411 Current provisions for employee benefits 5.269 6.378
Tax assets, current 6.074 3.555 Other non-financial liabilities, current 182 1.786
Total Current Assets 190.824 203.119 Total Current Liabilities 34.310 43.912
Other financial assets, Non-current - - Other non-current financial liabilities 31.816 38.726
Other non-financial assets, Non-current 219 235 Other non-current accounts payable - -
Fees receivables, Non-current 472 464 Deferred taxes liabilities - -
Investments in Associated 1.850 2.080 Other non-financial non-current liabilities 286 -
Net intangibles assets 2.227 2.352 Total Non-Current Liabilities 32.101 38.726
Goodwill 5.896 5.426
Property, plant and equipments 94.143 100.678 TOTAL LIABILITIES 66.411 82.638
Deferred tax assets 3.482 3.373
Total Non-Current Assets 108.291 114.609 Equity attributable to equity holders of the parent 231.998 234.159
Non-controlling interest 706 931
Total Equity 232.703 235.090
TOTAL ASSETS 299.115 317.727 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 299.115 317.727
5 9
11 14 12
24
35 38
46 45 40
32 33 31 29
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Forus Historical Summary Financials
Figures in US$ million, as of January 2nd 2019: 694,8 CLP/USD,
2005-2019 CAGR + 11.7% nominal 2005-2019 CAGR + 10.8% nominal
2005-2018 CAGR + 14.7% nominal
Revenues EBITDA
Net Income
Net IncomeMargin (%)
26
69 78 111
129 128 148
174 209
237
286 285 295 307 303 290
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
10 14
21 24 21
31
46 52
59 61
52 52 50 46 48
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EBITDA Margin
(%)15%
18% 19% 18%16%
21%
26% 25% 25%21%
18% 17% 16% 15% 17%
08%11% 10% 11% 09%
16%20% 18% 20%
16% 14%11% 11% 10%10%
June 2020December 2008
Ownership Structure
27
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%
Free float31,9%
Controlling Group68,1%
Costanera63,0%
Companies related to Costanera
5,1%
Investment & Mutual Funds
20,3%
AFPs (Pension Funds)7,8%
Brokers3,5%
Others0,3%
5 416 16
818
6 6 10 8 8
15
2516 14
15
3236
48
93
74
26 28 2823
34
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
One-time Capex (US$MM)Capex (US$ MM)
# Gross Stores Opened
Capex 2020 US$ 6 million *
Capex Evolution
2020 Capex Plan and Capex Evolution
28
DC in ChileBillabong &
7veinteAcquisition
• Includes 1Q20 purchase of real estate property in Uruguay where our offices are located, as well as a store and a distribution center
• Includes phase 1 of automation of part of current DC in Chile (completed in 3Q20)
* Revised downward from initial announcement of US$ 10 million.
New HQ in Chile
New HQ & real estate for DC 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