Presentación de PowerPointforus.cl/wp-content/...Presentation_June_2018.pdf · 0 250 500 2007 2009...

Agenda

1. Company Overview

2. Financial Summary

3. Company Comparison

4. Investment plan 2018

5. Strategy

6. Chile Consumption Overview

2

Agenda

0

250

500

2007 2009 2011 2013 2015 2017

Uruguay

Colombia

Peru

Chile

Chile83,6%

Perú7,7%

Uruguay7,0%

Colombia1,7%

Footwear68%

Apparel24%

Accesories8%

11,3%10,6%

13,1%

16,2%

ROA ROS ROE EBITDAMg

1Company report as of December 2017, 2As of March 2018, 3Stock price and FX as of May 31th, 2017, 4Total revenues of Colombia weights 3.2% of consolidate revenues.

Key Metrics

30 Brands and 21 different concepts of Retail stores

507 stores in Chile, Peru, Uruguay and Colombia

4,414 employees1

High level of Cash (MM US$ 129.2) and low level of Debt (Leverage of 0.14)2

Revenues by Subsidiaries 1Q182014 RatiosSales per Categories 2017

Brand Builder & Specialty Retailer

16,4%

485

# Stores per Country

510

CAGR of Sales of last 5 years of 11.2%.

Ratios 2017

335

64

52

564

Market Cap of US$ 901 million3

3

# Stores 1Q’18

% of total Sales 1Q’18

Sales 1Q’18*

# Concept stores 1Q’18

Population 2017

GDP (PPP)/capita 2017**

Concept Stores

* Figures as of March 2018, in US$ converted using the April 2nd, 2018 USD/CLP 603.39 exchange rate. MM = million.

**International Monetary Fund, World Economic Outlook Database, April 2018 Estimates

18.4 MM

US$ 24,537

31.8 MM

US$ 13,334

3.5 MM

US$ 22,371

49.3 MM

US$ 14,485

Brand Builder in Latam

4

335

83.6%

US$ 84.4 MM

17

64

7.7%

US$ 7.8 MM

11

56

7.0%

US$ 7.0 MM

9

52

1.7%

US$ 1.7 MM

4

How we Build Brands

Multi Brand Store Concepts

New Brands incorporated

1988

1995

2006

1993

This new Brands have their own Retail Stores

With important Growth

CAGR of Brands’ Revenues for the last 6

years (2010-2016)*

12%

CAGR of Retail’s Revenues for the last 6

years (2010-2016)

42%

2001

+9+10

+4

+4

*Patagonia not yet included. ** Numbers represent the years between the arrival of the brand to the market until its first store opening.

2013

+13

**1980

1991

1992 +22

5

Inte

rnat

ion

al L

ice

nso

rs

Wolverine World Wide (USA)

Columbia Sportswear (USA)

Nine West Holdings (USA)

Brooks (USA)

Patagonia (USA)

VF Corporation (USA)

Burton (USA)

Skullcandy (USA)

Dakine (USA)

Vulcabras Azaleia (Brazil)

Church’s (England)

Burleigh Point Ltd (Australia)

23

Bra

nd

s

Foru

s O

wn

Bra

nd

s7

Bra

nd

s

Portfolio of 30 Brands

6

New Stores

New Stores

20172012

e-commerce in

Acquisitions:

New brand

New stores

New stores

2011

New stores

1982

Alfonso Swett S. start with Hush Puppies in Chile with 70% of participation. 30% was in WWW hands

1995 1996 2001

Enter in Uruguay

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

New Stores

1991

Calpany acquisition

Born of name Forus S.A.

New stores

2009

Footwear’s factory in Chile Construction

1988 2003

2010

New Distribution Center in Chile

2013

New Brand&Chain

JV with WWW in Colombia for the brands

apparel

1993

2014

Hush Puppies Peru operation acquisition

Enter in Colombia

Acquisition in Uruguay of

Forus is opened in the stock market

Enter in Peru

Azaleia and Norseg acquisition.

New stores

2006 2008

Forus History: Chilean Company with 38 years of experience

New brand in Uruguay

2016

1980 2007

Inorganic 1

1 Red i: Involves payment $. Blue i: Involves WC.

New stores

e-commerce in

Ne

w

Bra

nd

s

1990

New Stores

1992 2005

Ne

w

Bra

nd

s

2015

7

2018

New Brands in Peru

Casual51%

Outdoor36%

Active Outdoor8%

Fashion5%

2017 Sales per Brand Concept

8% as for Consolidated figures.

Footwear68%

Apparel24%

Accesories8%

Casual51%

Outdoor36%

Active Outdoor8%

Fashion5%

Brand Mix Adaptable to Market Demand

9

Footwear76%

Apparel18%

Accesories6%

2005 2017

Sales per Brand Concept

Sales per Categories

Casual64%

Outdoor25%

Active Outdoor7%

Fashion4%

Broad Retail Portfolio2

1 S

tore

s C

on

cep

ts

Mono-Brand

Multi-Brand 48%**

52% **

* Stores with e-commerce web sites. **As number of Chain of Stores 2017

*

10

Commercial and MKT Manager

Sebastian Swett (29)

Corporate Retail Real State

ManagerClaudio Cabrera (15)

Retail ManagerMatias Topali (12)

Factory ManagerCarlos Espinoza (12)

Planning ManagerCarlos Díaz (12)

HR & Legal Manager

Manuel Somarriva (10)

L&D ManagerPatricio Ramírez

(12)

Uruguay CEOJuan Strauch (14)

Colombia CEOPablo Muxi (0)**

Peru CEOGonzalo

Sotomayor (2)*

CEOSebastian Swett (29)

IR Department

Head of IRSebastian Macchiavello (2)

BoardAlfonso Swett S. (37)

President

Alfonso Swett O. (24)

Heriberto Urzúa Sanchez (23)

John Stevenson (23)

Ricardo Swett Saavedra (18)

Francisco Gutierrez Philippi (8)

Matko Koljatic Maroevic (5)

Forus Management

() Number of years working in the Company. In the case of the Board, is the number of years as members. *6 Years in Forus Chile, 2 as Peru’s CEO. ** 3 Years in Forus Uruguay, 1 Year in Forus Colombia, 0 as Colombia’s CEO 11

Investor RelationsRicardo San Carlos (0)

Corporate CFOMarisol Cespedes (21) D

irecto

rs

Sub General ManagerMarisol Cespedes (21)

Dir

ecto

rs’

Com

mit

tee

Heriberto Urzúa Sanchez

Ricardo Swett Saavedra

Matko Koljatic Maroevic

Uruforus SAUruguay100%

Peruforus SAPeru

100%

Forus Colombia SASColombia

51%

LBC SASColombia

49%

FORUS S.A.

Forus Corporate Structure

12

Costanera63,0%Companies related to

Costanera5,1%

Investment Funds14,2%

Institutional Investors13,8%

Brokers3,6%

Others 0,2%

Free Float: 31,9%Free Float: 28,9%

Free Float28,9%

Controlling Group71,1%

Costanera64,6%

Companies related to Costanera

6,6%

Investment Funds16,1%

Institutional Investors4,6%

Brokers7,5%

Others 0,6%

Free Float31,9%

Controlling Group68,1%

May 2018December 2008

Ownership Structure

13

Hush

Cushe

Mountain

Brooks

Award ceremony not heldGreater value Creation Retail Greater value Creation Retail Greater value Creation Retail

Best Distributor of the Brand Best Distributor of the Brand

Best Distributor of the Brand Brand Partner of the year

Best Distributor of the Brand

Loca

l Greater value Creation Retail

Inte

rnat

ion

al

CAT

Highest Growth in LatAm Best Distributor of the World Best Distributor of the Brand

Excellence in Brand Buiding

Highest Revenues Growth Highest Revenues Growth

Best WWW Initiative

J. Venture

Best Executive Best Executive

Apparel Apparel

Best Distributor of the Brand Highest Brand Value Outstanding Performance Best Distributor of the Brand

Highest Revenues Growth

Apparel & Accesories Accesories

Highest Revenues Growth Best Distributor of the Brand

Ken Goi Award

Best Distributor of the Brand Best Distributor of the Brand

1

Accesories

Outstanding Sales

2017

Best Distributor of the Brand

2015

Outstanding Sales

Footwear

Outstanding Sales

Apparel Apparel

Apparel

Price Recieved in years: 20164 5 10 5 3 4

2011 2012 2013 2014

Company Recognition – 33 International Awards received

14

Forus Social Responsibility

15

Educational Institutions

Children in vulnerable situations

Support of Sports Outdoor

& Environmentalactivities

Employees Professional

Development

Agenda

1. Company Overview




5. Strategy


16

Agenda

Consolidated Income Statement

17

MM Ch$ 1Q'18 1Q'17 Var %

Revenues 60.826 61.356 -0,9%

Gross Profit 32.733 32.817 -0,3%

Gross Margin 53,8% 53,5% 0,3

SG&A Expenses (24.939) (24.330) 2,5%

SG&A / Revenues (41,0%) (39,7%) (1,3)

Operating Income 7.794 8.487 -8,2%

Operating Margin 12,8% 13,8% (1,0)

Other incomes / (Expenses) (14) 100 -113,7%

Net Financial Income / (Cost) 745 223 234,7%

Profit / (Loss) in Associates Companies (153) 2 -6935,7%

Exchange Rate Differentials (310) (157) 96,7%

Results of Indexation units (10) (7) 47,3%

Others 41 (51) -180,0%

Non-Operating Income 300 109 174,3%

Profit before income Tax 8.094 8.596 -5,8%

Income Tax (2.329) (2.358)

Minority Interest (99) (109)

Net Profit 5.765 6.239 -7,6%

ROS (%) 9,5% 10,2% (0,7)

EBITDA 9.186 9.877 -7,0%

EBITDA Margin 15,1% 16,1% (1,0)

Consolidated Balance Sheets

18

MM Ch$ Mar 18 Dec 17 MM Ch$ Mar 18 Dec 17

Cash and cash equivalents 3.164 4.365 Other financial liabilities, current 497 2.510

Other financial assets, current 74.789 75.422 Current trade and other current accounts payable 12.181 13.758

Other non-financial assets, current 4.530 4.670 Current accounts payable to related companies 1.139 1.041

Trade and other account receivables 29.969 22.918 Other current Provisions 6.833 6.269

Accounts receivables from related companies 0 1 Current tax liabilities - -

Inventories 79.083 81.108 Current Provisions for employees benefits 5.057 5.271

Tax Assets, current 4.022 4.206 Other non-financial liabilities, current 1.846 1.992

Total Current Assets 195.557 192.690 Total Current Liabilities 27.551 30.841

Other financial assets, Non-current 25 24 Other non-current financial liabilities 1.689 1.711

Other non-financial assets, Non-current 2.382 2.511 Other non-current accounts payable - -

Fees receivables, Non-current 188 184 Deferred taxes liabilities - -

Investments in Associated 2.075 2.120 Other non-financial non-current liabilities 8 8

Net intangibles assets 2.094 2.121 Total Non-Current Liabilities 1.698 1.719

Goodwill 6.026 6.026

Property, plant and equipments 29.187 29.516 TOTAL LIABILITIES 29.249 32.560

Deferred tax Assets 1.579 1.584

Total Non-Current Assets 43.557 44.087 Total Net Equity 209.866 204.217

TOTAL ASSETS 239.114 236.777 TOTAL NET EQUITY AND LIABILITIES 239.114 236.777

2,3%

9,9%

0,8%

-6,4%

-1,2%

-4,5%

-1,8%

9,0%

3,5%

2,8%

3,8%

7,3%

4,7%

-1,8%-2,9%

14,3%

10,5% 12,8%

6,3%4,9%

-1,3%-4,1%

1,4%

-1,5%

4,1%4,3%

-9,4%

-5,8%

-7,7%

-6,9%

-6,3%

-2,8%

2,1%

-6,7%

-12,2% -11,6%

-2,2%

1,7%

-4,2%

9,9%

-9,1%

1,1%

4,1%

-4,9%

8,0%5,9%

2,6%

-6,9% -6,4%

-3,2%

1,5%

9,5%

12,2%

-1,2%

9,9%

3,2%

4,5% 4,6%

10,6%

8,6%

-15%

-10%

-5%

0%

5%

10%

15%

20%

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18Chile Colombia Peru Uruguay

SSS Forus 2010 2011 2012 2013 2014 2015 2016 2017

Chile 10,1% 18,7% 8,3% 5,3% 5,3% -3,2% 3,6% 3,5%

Colombia 9,4% 15,3% 8,0% 9,3% 8,7% 4,4% 0,5% -5,1%

Peru 2,0% 20,7% 16,5% 4,2% -6,3% -7,5% 1,7% -2,4%

Uruguay 7,2% 20,3% 9,5% -8,0% 3,1% -3,5% 8,0% 6,1%

Total 9,8% 18,9% 8,9% 4,2% 4,2% -3,3% 3,8% 3,0%

Forus SSS by Country

19

SSS % variations, nominal values, in local currencies.

56.50463.480

90.568105.716

104.354

120.837

142.351

170.768

193.631

234.206 233.396 241.709250.962

61.356 60.826

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

Growing Sales - Forus Consolidated

20

Figures in million Chilean pesos.

14,7%17,6%

19,0% 18,3%16,3%

20,7%

26,5%24,9% 24,9%

21,2%18,3% 17,4%

16,2% 16,1% 15,1%

8.30511.152

17.171

19.299

17.014

25.010

37.663

42.495

48.21049.667

42.777 42.14640.569

9.877 9.186

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

EBITDA - Forus Consolidated

21

EBITDA Margin

EBITDA (MM Ch$)


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% 10,2% 9,5%

4.3177.020

9.24911.695

9.827

19.393

28.424

31.366

37.888 36.771

33.001

26.396 26.697

6.239 5.765

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

Net Income - Forus Consolidated

22

Net Income (MM Ch$)

ROS


2011 2012 2013 2014 2015 2016 2017

Net Openings 27 43 84 64 17 10 6

Openings 36 48 93 74 26 28 28

Net Op. (5 years Average) 26 24 34 45 47 44 36

0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

URUGUAY

COLOMBIA

PERÚ

CHILE

Stores Opening RateN

um

ber

of

Sto

res

op

ened

23

Agenda

1. Company Overview




5. Strategy


24

Agenda

-5%

0%

5%

10%

15%

20%

25%

LVM

H

AZA

LEIA

/VU

LCA

BR

AS

LULU

LEM

ON

KER

ING

(P

PR

)

NEX

T P

LC

IND

ITEX

(ZA

RA

)

LIM

ITED

BR

AN

DS

TRIC

OT

FOR

US

PO

LO R

ALP

H L

AU

REN

VF

CO

RP

OR

ATI

ON

NIK

E

H&

M

AM

ERIC

AN

EA

GLE

GA

P

FALA

BEL

LA

CO

LUM

BIA

MA

CY'

S

FOO

T LO

CK

ER

HIT

ES

AM

AZO

N

AB

ERC

RO

MB

IE

CA

LER

ES (

Bro

wn

Sh

oe

Co

.)

CR

OC

S

RIP

LEY

CO

RP

ALM

AC

ENES

ÉX

ITO

…

SMU

CEN

CO

SUD

AD

RET

AIL

(A

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)

UN

DER

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INE

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INC

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O

Ebitda Margin – Among the Most Efficient Worldwide

25* As of December of 2017

3,0%

5,3%

1,8%

14,1%

15,8%

6,4%

1,3%

12,0%

5,5%

2006-2009 2010-2013 2014-2017

Chile's Average GDP Growth Forus Chile' Average Sales Growth Industry Average Retail Sales Growth

Great Sales Performance of Forus Chile throughout the Years

4,7x 3,0x

3,5x

GDP information from International Monetary Fund, World Economic Outlook Database.Industry as companies in Chile (Falabella and Cencosud), considering only their Retail Business.

26

18,3%16,3%

20,7%

26,5%24,9% 24,9%

21,2%

18,3% 17,4%16,1%

15,1%

9,7%8,0%

11,4% 11,1%9,6% 10,3%

11,4%9,5%

10,5% 10,2% 9,7%

0%

5%

10%

15%

20%

25%

30%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18

Ebitda Margin vs. Exchange rate

Forus Retail Players Average*

400

500

600

700

Ebitda Margin vs. Exchange rate

Ebit

da

Mar

gin Exch

ange R

ate

Ebitda Margin above the Industry in Chile

USD$

• Falabella, Cencosud , Ripley and Hites. 27

4.791 4.664 4.638 4.5845.057 5.059

1.129

6.0916.601

6.869 6.7507.138 7.131

1.562

2012 2013 2014 2015 2016 2017 1Q18

Retail Players Avg.* Forus Chile

Ebitda Margin vs. Exchange rateOutperforming in Sales per square meters compare to Chilean Industry

* Falabella, Cencosud, Ripley and Hites. Figures in USD/Sqm, calculated using the observed dollar exchange rate (in USD/CLP) for April 2, 2018: 603,39.

1.3x 1.4x 1.5x 1.5x 1.4x 1.4x

28

1.4x

Agenda

1. Company Overview




5. Strategy


29

Agenda

5 416 16

818

6 6 1015

2515

3236

48

93

74

26 28 28

0

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014 2015 2016 2017

Other (US$ MM)

Capex (US$ MM)

# Gross Stores Opened

13

2 05

Chile Perú Colombia Uruguay

Capex 2018 US$ 10 MM20 Stores

Capex Evolution

2018 Stores Opening Plan and Capex Evolution

30

Distribution Center in

Chile

Billabong & 7veinte

Acquisition

Agenda

1. Company Overview




5. Strategy


31

Agenda

32

Forus’ 4 Pilar-based Strategy4 CONCEPTOS ESTRATEGICOS

21

Crecimiento Integración Innovación Cultura

4 CONCEPTOS ESTRATEGICOS

21

Crecimiento Integración Innovación Cultura

4 CONCEPTOS ESTRATEGICOS

21

Crecimiento Integración Innovación CulturaGrowth Integration Innovation Culture

Recognized Brands

Focus on Retail

Excellence

Customer Oriented

EfficiencyFinancial Strength

Our People

Profitable Growth

Core Competences

Quality Products

33

Focus on our Customers Lifestyle-Trends

34

How we will continue Growing

International Expansion

Organic Growth

InorganicGrowth

35

4,4

2,3

1,2

3,8


70

32 3310

323

7461 52


Cant. Malls en que estamos Tiendas Totales

3,7

2,0

1,6

4,0

Prom. Tiendas x Mall

Stores per Mall per Country

36

Average

3.0

# Malls were we are Total # stores Avg. Stores per mall

Source: 1Own Elaboration based on figures as of December 2016

Forus’ Average Stores per Mall 2016 # Mall per million habitant1

Quick Review of New Brands Incorporated

37

20152014 2016

Sports & Fitness

August 2016

Lifestyle & Street Fashion

February 2016

Life Style & Sports

February 2014

Lifestyle Street-Sportswear fashion

March 2016

Life Style Fashion

February 2014

Outdoor & Casual

for

July 2016

Outdoor & Wellness

April 2017

2017

A B

ran

d f

rom

In s

tore

s si

nce

E-Commerce

38

Websites Social Network

2018

2013 2014 2015 2016 2017

4 3 1 1 3

Agenda

1. Company Overview




5. Strategy


39

Agenda

5,6

6,1

6,6

7,1

2013 2014 2015 2016 2017 2018

0%

2%

4%

6%

8%

10%

12%

2013 2014 2015 2016 2017 2018

Companies

Consumer

30

40

50

60

70

2013 2014 2015 2016 2017 2018

IMCEIPEC

4,2%

1,9%2,3%

1,6% 1,5%

3,1% 3,2% 3,2%

2013 2014 2015 2016 2017 2018E 2019E 2020E

Confidences Index

51.2

Economic Growth Forecast3

54.4

Fuentes: 1Companies Confidence. Source: Chilean Central Bank, 2Consumer Confidence. Source: Chilean Central Bank, 3Latin Focus Consensus Mar-18, 4Chilean Central Bank, 5INE.

Unemployment5

April - 18

6.7%

Chile Economic Outlook

40

Dynamism on Credits demand4

4.0%

2.4%

April-18

Var. % Nominal Annual Credits

2

1

April-18

41

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.

Disclaimer

Presentación de PowerPointforus.cl/wp-content/...Presentation_June_2018.pdf · 0 250 500 2007 2009...

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Transcript of Presentación de PowerPointforus.cl/wp-content/...Presentation_June_2018.pdf · 0 250 500 2007 2009...