Forus Earnings Results 4Q 2017forus.cl/wp-content/uploads/2018/03/Forus_4Q17... · Summary of Consolidated Results 4Q 2017 3 • Consolidated Revenues of US$ 100.3 million decreased

Forus Earnings Results 4Q 2017

March 6th, 2018

Agenda

2

1. Summary of Results

2. Highlights of the period

3. Financial Results

4. Subsidiaries

5. Q&A

Index

Summary of Consolidated Results 4Q 2017

3

• Consolidated Revenues of US$ 100.3 million decreased -0.2% in the

4Q 2017.

• Gross Profit decreased -0.4%, obtaining a gross margin of 55.0%,

which is only 12 bps over the 55.1% reported in 4Q 2016.

• Operating Income of US$ 12.1 million fell -12.0% and reached an

12.1% of Revenues.

• EBITDA of US$ 14.5 million decreased -19.8%, reaching an EBITDA

margin of 14.4%.

• Net Profit of US$ 10.5 million dropped -12.2%. Its represents 10.4% as

a percentage of revenues.

Summary of Consolidated Results 2017

4

• Consolidated Revenues of US$ 408.2 million grew 3.8% as of

December 2017.

• Gross Profit increased 5.3% and gross margin was 54.4%, up 75 basis

points from 53.6% in 2016.

• Operating Income of US$ 56.3 million fell -0.7% and reached a 13.8%

of revenues.

• EBITDA of US$ 66.0 million decreased -3.7%, reaching an EBITDA

margin of 16.2%.

• Net Profit of US$ 43.4 million increased 1.1%.

Agenda

5




4. Subsidiaries

5. Q&A

Index

D. House Vivo La Florida SantiagoRockford Osorno Osorno7Veinte Vivo Peñuelas ValparaísoColumbia Mall Sport SantiagoBillabong Vivo Peñuelas ValparaísoHush Puppies Plaza Los Domínicos SantiagoCaterpillar Plaza Los Domínicos SantiagoD. House Vivo Temuco TemucoMerrell Pucón PucónColumbia Plaza Calama Calama

Stores Sqm Chain Store City

+10

6

Highlights of the Period

✓Openings 4Q 2017

+1.324

+12 +1.421TOTAL:

Pasqualini Centro 2 MontevideoColumbia Punta del Este Punta del Este

+2 +97

12

-8

4

Aperturas Cierres Aperturas Netas

4Q 2017

Closings Net OpeningsOpenings

7


✓New brands Keds and Sperry for Perú.

Comercialized through the Stores:

✓New E-commerce for brands in Chile Hush Puppies, HP Kids & Sperry

8


✓New E-commerce for brand in Colombia CAT

First own E-commerce site in Colombia.

9

Remarkable Facts

• Subsidiaries increased gross margin by 303 basis points and grew

142% in Operational Result in 4Q’17.

• E-commerce grew at a triple digit rate as of December of 2017.

• Four brands grew at a triple digit rate during 2017.

• Consolidated SSS of 3.0% as of December 2017.

Agenda

10




4. Subsidiaries

5. Q&A

Index

4Q'17 4Q'16 Var %

61.632 61.760 -0,2%

Consolidated Income StatementGrowth explain by:

Revenues

11

100%

-1,8%

-4,9%

-7,7%

10,6%

Chile

Perú

Colombia

Uruguay36.611

6.383 4.038 4.432

38.782

5.900 3.604 4.658

Chile Perú Colombia Uruguay

4Q16

4Q17

42.651

6.324

48.975

5.2481.842

5.735

43.734

5.084

48.817

5.2441.545

6.112

Chile Retail Chile Wholesale Chile Consolidado Perú Colombia Uruguay

4Q16 4Q172.5%

12

Revenues (MM Ch$)

Revenues by Subsidiaries 4Q’17

-19.6%

-0.3%

-0.1% -16.1% 6.6%

Nominal SSS % Growth (in local currency)

in CLP

Var. %

Var. %

0.6% -12.7% 14.0%

Square Meters December 2017

5.9%

-7.6% -10.7% 5.1%

Chile Consolidated

Local Currency

Peru

Peru

Peru

4Q '17 4Q '16 Var. %

Chile 1.834 1.895 -3,2%

Uruguay 2.051 1.856 10,5%

Colombia 1.229 1.217 0,9%

Perú 1.111 1.034 7,4%

Total 1.732 1.732 0,0%

13

Sales per Square Meters by Country

Retail Sales per square meter (in local currency)

of 4Q’17:

expressed in USD

33.888 34.035 -0,4%

55,0% 55,1% (0,1)

Consolidated Income Statement

14

100%Gross Profit

Growth explain by:

57,8%45,0%

56,1% 52,4%39,8%

53,5%55,8% 49,7% 55,1% 53,0%42,2%

58,0%


4Q16

4Q17

24.639

2.846

27.485

2.748734

3.067

24.383

2.526

26.909

2.779652

3.548


4Q16 4Q17

15

Gross Profit by Subsidiaries 4Q’17

Gross Profit (MM Ch$)

Gross Margin %

-201 bps468 bps 62 bps 236 bps

456 bps-100 bps

-1.0%

-11.3%

-2.1%

1.1%-11.2%

15.7%

Var. bps

Var. % AA

Chile Consolidated

Chile Consolidated

Peru

Peru

FORUS CHILE FORUS SUBSIDIARIES FORUS CONSOLIDATED

Var. Inventories (days) dec-16

dec-17

FORUS CHILE FORUS SUBSIDIARIES FORUS CONSOLIDATED

Var. % Inventories ($CLP)dec-16

dec-17

FORUS COLOMBIA FORUS PERU FORUS URUGUAY

dec-16

dec-17

16

Levels of Inventories

8% 18% 10%13

- 6 32

36 17

51

7.450 8.465 -12,0%

12,1% 13,7% (1,6)

Operating Profit


17

100%100%

Growth explain by:

-39,2% -42,7% -39,6%-51,9% -51,4% -43,4%-42,0% -40,2% -41,8% -50,7% -40,6% -44,9%


4Q16

4Q17

7.927

148

8.075

26

-212

576

6.023

482

6.504

120 25800


Operating Profit (MM Ch$)

4Q16 4Q17

18

Operating Profit by Subsidiaries 4Q’17

-24.0%

225.7%

-19.4%

325.1% -112.0%38.9%

SG&A’s (%)

-280 bps 246 bps -217 bps 116 bps 1080 bps -151 bps

Var. % AA

Var. bps

Chile Consolidated

Chile Consolidated Peru

6.435 7.328 -12,2%

10,4% 11,9% (1,4)

8.810 11.104 -20,7%

14,3% 18,0% (3,7)

(699) 257 -372,4%

Net Profit

Non-Operating Income


19

48% Due to Non – Operating Income

52% Due to Operating Result

Growth explain by:

EBITDA

27 7

12

28

-3 -3 -8 -8

-22

-1

4

-1

4 6

1Q'17 2Q'17 3Q'17 4Q'17 2017

Aperturas Cierres Aperturas Netas

13

2 05

Chile Perú Colombia Uruguay

20

Capex 2018

Capex 2018 US$ 10 MM 20 Stores

Peru

Openings Closings Net Openings

Store’s Openings Evolution 2017 *

* It consider just new openings/closings (excludingreconversion and re-openings due refurbishments)

Agenda

21




4. Subsidiaries

5. Q&A

Index

390

945

Subsidiaries

4Q16 4Q17

22

Remarkable Performance of Subsidiaries

-184

-641

744631

Op. Result of Subsidiaries Net Profit of Subsidiaries

Subsidiaries Results for 2017 (MM Ch$)

2016 2017

51,1%

54,1%

Subsidiaries

4Q16 4Q17

-48,0%

-46,8%

Subsidiaries

4Q16 4Q17

SG&As (%) Operating Result (MM Ch$)Gross Margin (%)

Uruguay Colombia* Perú Subsidiaries

Sales per sqm growth for 2017

Dic. 2016 Dic. 2017

+303bp. -126 bp. +142%

+505% +198%

+12.1%+10.4%

+12.1% +8.2%

* Retail Sales of Forus Colombia + LBC

Subsidiaries Results for 4Q’17 (MM Ch$)

2016 2017

** Calculated as the sum of sales divided by total sqm

**

Agenda

23




4. Subsidiaries

5. Q&A

Index

24

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

Documents

Forus Earnings Results 4Q 2017forus.cl/wp-content/uploads/2018/03/Forus_4Q17... · Summary of Consolidated Results 4Q 2017 3 • Consolidated Revenues of US$ 100.3 million decreased