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Legal History: The Company was incorporated as a limited liability company under the name of Comercial Hush Puppies Chile Limitada by public deed executed August 29, 1980 in the Santiago Notarial Office of Mr. Enrique Morgan Torres. An abstract of such deed of incorporation was registered on page 13,313, number 6,564 of the 1980 Commercial Registry of the Santiago Real Estate Registrar and it was published in the Official Gazette on September 12, 1980. A rectification of this abstract was registered on page 13,740, number 6,800, in the same 1980 Registry of the aforesaid Registrar and was published in the Official Gazette on September 23, 1980.

The partners in Comercial Hush Puppies Chile Limitada agreed to transform the Company into a stock corporation by public deed executed December 20, 1991 in the Santiago Notarial Office of Mr. Jaime Morande Orrego. They also changed its name to Forus S.A. and restated its bylaws. An abstract of that deed was registered on page 2,202, number 1,103, of the 1992 Commercial Registry of the Santiago Real Estate Registrar and it was published in the Official Gazette on February 23, 1992. A rectification of this latter abstract was

registered on page 3,742, number 1,840, in the same 1992 Registry of the aforesaid Registrar and it was published in the Official Gazette on January 31, 1992.

The bylaws of the Company were restated at the Special Shareholders Meeting held May 6, 1996. The minutes of that meeting were executed to public deed on August 6, 1996 in the Santiago Notarial Office of Mr. Ivan Torrealba Acevedo. An abstract was registered on page 20,241, number 15,673, of the 1996 Commercial Registry of the Santiago Real Estate Registrar and published in the Official Gazette on August 13, 1996.

The bylaws have been amended as follows thereafter:

i) The Special Shareholders Meeting held January 14, 1997 approved a capital increase in the Company. The minutes of that meeting were executed to public deed on January 16, 1997 in the Santiago Notarial Office of Mr. Ivan Torrealba Acevedo and an abstract registered on page 3,098, number 2,489, of the 1997 Commercial Registry of the Santiago Real Estate Registrar and published in the Official Gazette on January 27, 1997.

Name: Forus S.A. (an open stock corporation)Taxpayer Identification Number: 86.963.200-7Registered Offices: Avenida Departamental 01053, La Florida, Santiago, Chile

1. General Information on the Company 7

ii) A special Shareholders Meeting held December 17, 2002 approved: a) an increase in the capital because of the revaluation of shareholders’ equity; b) a merger by the takeover of Macs S.A. and Comercial Forushop Ltda.; and c) an increase in the capital as a result of the merger. The minutes of this meeting were executed to public deed on the same day in the Santiago Notarial Office of Mrs. Nancy de la Fuente Hernandez and an abstract registered on page 34,800, number 28,111, in the 2002 Commercial Registry of the Santiago Real Estate Registrar and published in the Official Gazette on December 21, 2002.

iii) A Special General Shareholders Meeting held September 7, 2006 approved splitting the company to create a new stock corporation called Inmobiliaria F S.A. As a result of that split, Forus S.A. decreased its equity and capital by the amount of the equity and capital allocated to Inmobiliaria F.S.A. in the split. It was also resolved to fractionate or dilute the capital of the company into a greater number of shares, at the rate of eight hundred new shares for each old share. A capital increase was also approved and the listing of the company’s shares in the Securities Registry of the Securities and Insurance Commission, including those issued in the aforesaid capital increase, so that they could be traded on “Emerging Markets” regulated by the Stock Exchanges.

iv) A Special General Shareholders Meeting held October 26, 2006 approved changes to the resolutions adopted at the preceding meeting in order to meet the requirements of the Securities

and Insurance Commission arising during the listing process.

v) A Special Shareholders Meeting held May 25, 2011 resolved to add activities to the business. The minutes of that meeting were executed to public deed executed June 21, 2011 in the Santiago Notarial Office of Mr. Ivan Torrealba Acevedo and an abstract of that deed was registered on page 38,948, number 28,997, of the 2011 Commercial Registry of the Santiago Real Estate Registrar and was published in the Official Gazette on July 14, 2011.

Addresses : DepartamentalAvenida Departamental 01053, La Florida, Santiago, ChilePhone: (562) 2923-3000

CerrillosCamino a Melipilla 9400, Cerrillos, Santiago, ChilePhone: (562) 2557-3537

Capital : KCH$24,242,787, divided into 258,469,000 shares with no par value.

Business : 1) The manufacture, import, export, sale and distribution of footwear, leather items, textiles, clothing, the inputs and accessories thereto and any other product related to footwear and textiles as agreed by the partners.

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2) The manufacture, import, distribution and sale of any type of chattel goods, whether raw materials or manufactured goods, regardless of the business, in any form, pro se or for account of third parties, including but not limited to, the sale of products related to foods and beverages, cosmetics and pharmaceuticals, music, books, electronic goods, home goods, accessories and the like, whether or not related to the foregoing.

3) The purchase and sale of shares in stock corporations.

4) The purchase and sale of any type of real estate and the lease, usufruct and, in general, commercial exploitation thereof as well as the development of real estate projects of any type. It may, therefore, subdivide, merge, parcel and urbanize any type of real estate.

5) The rendering of any type of service and assistance in, or relating directly or indirectly to, administrative, accounting, information technology and similar matters.

6) Holding an interest in other companies of any nature; and

7) Any commercial or industrial activity relating directly or indirectly or complementary to the foregoing activities and, in general, all acts and contracts that are deemed necessary or convenient to attaining said objectives.

Investor Relations : ir@forus.clPhone: (562) 2923-3017www.forus.cl

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FORUS S.A. is a publicly held corporation. In that capacity, it is subject to Companies Law 18,046 and the regulations to that law, to Securities Market 18,045 and to regulations of the Securities and Insurance Commission.

FORUS S.A. and its domestic subsidiary must also abide by the Consumer Protection Law and Chilean standards on footwear labeling and safety footwear manufacturing.

Finally, the different subsidiaries abroad are regulated by the particular rules of law in each country or jurisdiction.

2. Regulatory Framework 13

(1) Costanera S.A.C.I. holds 64.01% of Inversiones Costanera Ltda.

(2) Sebastian Swett Opazo, taxpayer identification number 7.016.199-0, owns 99% of Trends S.A.

(3) Alfonso Andres Swett Opazo, taxpayer identification number 7.016.281-4, has a 99.5% interest in Asesorias e Inv. Sta. Francisca Ltda.

(4) In the group of Other Shareholders, Comercial Spac Ltda. is 45%-owned by Ricardo Swett Saavedra, taxpayer identification number 4.336.224-0. He also owns 0.34% of Forus S.A.

Shareholder Inversiones Costanera Ltda (1)Fdo. Inversión Larraín Vial BeagleCompass Small Cap Fdo de InversiónTrends S.A. (2)Bco Santander-HSBC Global CustodyBanco de Chile on behalf of third partiesAsesorías e Inv. Sta. Francisca Ltda. (3)Celfin Capital S.A. C. de BolsaCelfin Small Cap Chile Fdo de InvBco Itaú on behalf of investorsAFP Provida for C FundAFP Provida for B FundOthers (4)

TOTAL

Shares Interest 170,708,800 66.05%9,448,744 3.66%8,362,995 3.24%7,610,997 2.94%7,261,535 2.81%5,654,582 2.19%4,666,400 1.81%4,624,827 1.79%3,962,036 1.53%3,441,019 1.33%3,339,707 1.29%2,800,099 1.08%26,587,259 10.28%

258,469,000 100%

3. Shareholders as of december 31, 2012 15

Alfonso Swett Saavedra, taxpayer identification number 4.431.932-2, holds 0.01% of Costanera S.A.C.I. 99.99% of Costanera S.A.C.I. is held by Inversiones Costasol SpA, which is, in turn, 92.64%-owned by Alfonso Swett Saavedra.In the group of Other Shareholders, Alfonso Swett Saavedra holds 410,524 shares in Forus S.A. Therefore, the controller holds 66.20% of Forus S.A

There is no joint action agreement in place.

Inversiones Costanera Ltda.Fdo Inversión Larraín Vial BeagleCompass Small Cap Chile Fdo Inv.Trends S.A.Bco Santandr-HSBC Global Custody Asesorias e Inv. Sta Franciasca Ltda.Celfin Capital Corredores de Bolsa Banco de Chile por cuentaAFP Provida para fondo B Banco de Itau por cuenta Celfin Small Cap Chile Fdo Inv. AFP AFP Provida para Fondo C Otros

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Alfonso Swett SaavedraTaxpayer I.D.: 4.431.932-2 Chairman of the Board. Entrepreneur, President of Costanera S.A.C.I., Inmobiliaria Costanera S.A. and Olisur S.A., Director of Elecmetal S.A., Viña Santa Rita S.A., Hortifrut S.A., Marbella Chile S.A., Cristalerias de Chile S.A., Advisor to SOFOFA.

Alfonso Swett OpazoTaxpayer I.D.: 7.016.281-4 Executive Director. Business degree from the Catholic University of Chile, MBA from Duke University in the U.S.A., CEO of Costanera S.A.C.I., Director of Agricola Costanera S.A., Olisur S.A., Hortifrut S.A., Artec S.A., Inmobiliaria Costanera S.A.; Vice-President of USEC; Director of ICARE; Economic Advisor to the Confederation of Micro, Small and Mid-Sized Businesses (Conapyme), Advisor to SOFOFA, part-time Professor in business administration at the Catholic University.

Heriberto Urzua Sanchez Taxpayer I.D.: 6.666.825-8 Business degree from the Catholic University of Chile, MBA from I.E.S.E. University of Navarra/London Business School; President of Armacero S.A. Director of Hortifrut S.A., Relsa S.A., Terraservice S.A. and Empresas SB S.A.; Councilman in Generación Empresarial, Member of the Executive Committee of the Finance and Business Circle of ICARE.

Ricardo Swett SaavedraTaxpayer I.D.: 4.336.224-0Former Naval Engineer and Officer in the Chilean Navy, Farmer and C.P.A., Director of Costanera S.A.C.I., Inmobiliaria Costanera S.A., Olisur S.A. and Arteco S.A. (Peru). Former CEO of Forus S.A.

Francisco Gutierrez PhilippiTaxpayer I.D.: 7.031.728-1 Civil Engineering degree from the Catholic University of Chile, Master in Economics and Business Administration, University of Navarra, Director of SM SAAM S.A., Sociedad de Inversiones Oro Blanco S.A., Desarrollo Inmobiliario Cerro Apoquindo Ltda. and South Andes Capital SpA.

Eduardo Aninat UretaTaxpayer I.D.: 5.892.294-3 Business degree from the Catholic University, MBA and Ph.D. from Harvard University, former Minister of Finance (1994-1999), advisor to GGE Geotermia and Director General of Uniapac in Paris.

John StevensonExtranjero British citizen who studied at University of Leicester, International Development Consultant for ADOC in the Republic of El Salvador, former President of Hush Puppies U.S.A. and of Brooks U.S.A. and former Vice-President of Production and Sourcing of Timberland U.S.A.

4.1 BOARD OF DIRECTORS

4. Board of Directors and Management 19

Dear Shareholders:

On behalf of the Board of Directors over which I preside, it is my pleasure to present you with the 2012 Annual Report and Financial Statements of Forus and its subsidiaries and to briefly discuss the challenges and opportunities that we envisage going forward.

2012 was a very good year for the Company. Our growth and profitability were high. We ended the year with a total of 337 stores in the four countries where we do business in Latin America. On a consolidated basis, our sales rose 20%, to MCH$170.768, our net profit 10.3%, to MCH$31.366, and our EBITDA 12.4%, to MCH$42,495, all in comparison to 2011.

This growth came from the profitability of our retail stores in Chile and of our subsidiaries. We opened 25 new stores in Chile this year, bringing the number to 240, while sales increased 18% compared to 2011. Chile’s stores accounted for 81% of total consolidated sales. Subsidiaries, on the other hand, run 97 stores and increased sales 34.3% compared to 2011, accounting for the other 19% of all of our sales. The excellent results in subsidiaries were possible thanks to a healthy growth in all of them. Sales of the Uruguayan subsidiary rose 24% after opening 11 new stores and maturing the four new retail concepts: CAT, Merrell, Hush Puppies Kids and TNS. Those stores

were opened between 2011 and January 2012. Sales of our subsidiary in Peru grew 24% after consolidating the position of our brand portfolio that has been widely accepted by our consumers. The sales growth in Forus Colombia was impressive, at 31%, the result of introducing the new Cat and Merrell brands to our brand portfolio, which we acquired in the joint venture signed with Wolverine World Wide Inc. (WWW) in April of this year, and of strengthening the retail chain in Colombia. Lastly, Top Safety’s sales rose 166% compared to 2011 due to the new organization structure and new commercial strategy, which are yielding excellent results.

2012 can be characterized as a year in which the macroeconomic setting continued to be volatile and uncertain, especially in the U.S. and European economies. Yet there was a good level of confidence and of consumption in the microeconomic environment that we knew how to take advantage of well. Our sales rose, as indicated above, and we maintained our strong financial position, leading to a gross margin of 22% and an EBITDA margin of 25%.

4.2 LETTER FROM THE CHAIRMAN

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In 2012 we consolidated the management of our new distribution center, with the resulting improvement in our distribution and logistics. We invested heavily in our stores by opening a total of 48 new ones in the countries where we do business. We also made significant investments in systems, where we continue to hold a competitive advantage in technology platforms.

The cornerstone of our company is, as always, the strength of our brands, our retail business and our closeness to consumers. Our priority is to know our customers and anticipate their needs. We want to give them the best buying experience and service through trained and excellent sales staff. The result: our brands are always heavily in demand. The consolidated team of professionals, technicians, sales force and workers are the pillar around which we plan our growth and our vision of the future. We are in the process of rejuvenating the Forus team and those new members will be future executives. In 2013, our work will focus, like in 2012, on the quality of working life program by which we intend to forge a better working relationship with our collaborators. One good example of the results of this work is the prize awarded to Forus in January 2013 as one of the best places for both fathers and mothers to work. It is a given by the United Chile Foundation and Ya magazine, published by El Mercurio, as part of the Large Company Ranking. And we are very proud of this award.

For the Board of Directors over which I preside, social responsibility toward our country is and will always be an aspect in which it will be directly involved and will be a leader in its development inside the Company. Through the Child Protection Foundation, the Hope Corporation and the Nocedal Educational Foundation, we are helping with child development, drug rehabilitation and technical education. During this fiscal year, we also focused on training our collaborators. Our main tool is Forus University, where we train our executives and workers in the different areas of the

Company with the support of our managers and educators from prestigious universities in the country.

We will work hard for 2013 to be a good year as well. We will continue to make investments and innovations actively. Our focus on excellence in attaining low and flexible operating costs, our efficient inventory management, attractive retail chain and a portfolio of brands in demand by our customers will enable us to continue building a leader in specialty retail within Latin America. Our international operations will also continue to grow and their relative weight will increase with respect to Chile.

Lastly, I would like to thank all our shareholders, customers, suppliers, collaborators and directors for their eternal trust.

Alfonso Swett S.Chairman Forus S.A.March 2013

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4.4 Division Managers

Chief Executive OfficerGonzalo Darraidou D.Business Degree, Catholic University of ChileTaxpayer I.D.: 8.808.724-0

Chief Financial OfficerMarisol Cespedes N.Business Degree, University of ChileTaxpayer I.D.: 7.254.487-0

Commercial ManagerSebastian Swett O.Business Administration Degree, Adolfo Ibañez UniversityTaxpayer I.D.: 7.016.199-0

Retail ManagerClaudio Cabrera B.Business Degree, University of ChileTaxpayer I.D.: 5.391.006-8

Logistics and Distribution ManagerPatricio Ramirez T.Civil Industrial Engineering Degree, University of ChileTaxpayer I.D.: 10.108.122-2

HR and Legal ManagerManuel Somarriva L.Law Degree from Finis Terrae UniversityTaxpayer I.D.: 10.549.296-0

4.3 MANAGEMENT

External AuditorsErnst & Young

Legal CounselGarcía, Montes, Olivos, Eyzaguirre & Cia. Ltda.

CEO Gonzalo Darraidou D.

Commercial DivisionSebastián Swett O.

Administration and Finance DivisionMarisol Céspedes N.

Retail DivisionClaudio Cabrera B.

Factory DivisionCarlos Espinosa N.

Logistics and Distribution DivisionPatricio Ramirez T.

HR and Legal DivisionManuel Somarriva L.

Planning DivisionCarlos Díaz M.

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Factory ManagerCarlos Espinosa N.Mechanical Engineering Degree, Federico Santa Maria Technical UniversityTaxpayer I.D.: 8.263.239-5

Planning ManagerCarlos Diaz M.Business Administration Degree, University of ChileTaxpayer I.D.: 13.035.361-4

Legal CounselGarcia, Montes, Olivos, Eyzaguirre & Cia. Ltda.

AuditorsErnst & Young

4.5 Employees

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21

427

467

24

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2,212

2,294

42

87

2,632

2,761

ParentCompany Subsidiaries

Combined Total

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5.1 OWNERSHIP STRUCTURE OF FORUS S.A. AND SUBSIDIARIES The ownership structure of Forus S.A., its subsidiaries and associates is indicated below:

Forus S.A.

Name: URUFORUS S.A.

Bussines: FThe manufacture, import, export, sale and distribution of footwear, leather items, clothing and other items.

Directors and Executives: Gonzalo Darraidou Diaz (President and CEO of Forus)Marisol Cespedes Navarro (Director, CFO of Forus)

CEO: Juan Strauch D.

Share: Wholly-owned.

Total Number of Shares: 17,000,000 Subscribed and Paid-In Capital: KCH$2,018,435

5.2 URUFORUS S.A. Investment: KCH$7,417,140, representing 5.70% of all of the parent company’s assets. General Description: Uruforus S.A. was incorporated by deed dated November 15, 1990. Its bylaws were approved by Resolution dated December 6, 1990, issued by the General Treasury Office on December 27, 1990, under number 1059, page 11,653/11,670 of Bylaw Book 3. Uruforus took over Pasqualini S.A. on April 30, 2012. Pasqualini was therefore extinguished according to the laws of the Oriental Republic of Uruguay.

Uruforus S.A. does business in Uruguay through two distribution channels: wholesale and retail sales are made through the administration of its own stores.

LBC S.A.S 49.00%

Forus Colombia51.00%

Peruforus99.98%

Topsafety S.A.99.89%

Uruforus S.A.100%

5. Investments in other Companies 29

5.3 TOPSAFETY S.A.

Name: TOPSAFETY S.A.

Taxpayer I.D.: 96.583.940-2

Business: The manufacture, import, export, distribution and sale of all types of safety footwear, clothing and accessories for its own account or others, wholesale or retail, and the representation of any kind of national and/or foreign brands and firms.

Directors: Alfonso Swett Saavedra (President and President of Forus S.A.)Ricardo Swett Saavedra (Director and Director of Forus)Alfonso Andres Swett Opazo (Director and Director of Forus)Sebastian Swett Opazo (Director, Commercial Manager of Forus)Gonzalo Darraidou Diaz (Director and CEO of Forus)Marisol Cespedes Navarro (Director, CFO of Forus)

CEO: Andrés Infante

Share: 99.89%

Total Number of Shares: 51,019

Subscribed and Paid-In Capital: KCH$4,458,917

Investment: KCH$1,518,624, representing 1.17% of all of the parent company’s assets.

General Description: A company incorporated by public deed dated May 25, 1990 in the Santiago Notarial Office of Mr. Jaime Morande Orrego and registered on page 16,232, number 8,151, of the 1990 Commercial Registry of the Santiago Real Estate Registrar.Topsafety manufactures and sells safety footwear, clothing and accessories.

5.4 PERÚ FORUS S.A.

Name: PERÚ FORUS S.A.

Business: The manufacture, import, and/or sale of all kinds of products and the implementation of, and/or investment in, real estate businesses.

Directors: Gonzalo Darraidou Diaz (President and CEO of Forus)Marisol Cespedes Navarro (Director, CFO of Forus)Ricardo Swett Saavedra (Director and Director of Forus)Sebastian Swett Opazo (Director, Commercial Manager of Forus)Alfonso Swett Opazo (Director and Director of Forus)

CEO: Eduardo Balbín B.

Share: 99.98 %

Total Number of Shares: 1,082,000

Subscribed and Paid-In Capital: KCH$2,360,465

Investment: KCH$3,591,72, representing 2.76% of all of the parent company’s assets.

General Description: A company domiciled in Lima, Peru and established on December 14, 2006 by deed executed before Notary Ricardo Ortiz de Zevallos Villaran, registered on Page No. 11963870 of the Juristic Persons Registry of Lima. It engages in the sale of all types of products and in conducting real estate business.

5.5 FORUS COLOMBIA S.A.

Name: FORUS COLOMBIA S.A.

Business: The distribution and representation, purchase and sale, export and import of shoes, sandals, slippers, gloves, purses, bags, and, generally, clothing items and personal items made of leather, plastic and other materials.

Directors and Executives: Gonzalo Darraidou Diaz (President and CEO of Forus)Sebastian Swett Opazo (Director and CCO of Forus)John Stevenson (Director and Director of Forus)William J.B. Brown (Director)Christopher E. Hufnagel (Director)

CEO: Alejandro Cruz Share: 51.00 %

Total Number of Shares: 15,600,261

Subscribed and Paid-In Capital: KCH$1,907,303

Investment: KCH$989,056, representing 0.76% of all of the parent company’s assets.

General Description: This company has its registered offices in Bogota, Colombia and it was incorporated as a wholly-owned company under the corporate name of La Maravilla Cali E.U. by private instrument dated February 20, 2007, executed in the 13th Notarial Office of Cali and registered under No. 705949-15 of the Chamber of Commerce of Cali, Colombia.

The company later converted into a stock corporation by public deed executed on March 12, 2007 in the aforesaid notarial office, doing business under the corporate name of La Maravilla Cali S.A.

Forus S.A. acquired shares in this company on April 30, 2007. The Company was transformed into a simplified joint stock company according to the

minutes of the General Shareholders Meeting held July 31, 2012. Those minutes were recorded on October 1, 2012. Its name was changed to Forus Colombia S.A.S.

It engages in the sale of footwear and clothing items.

5.6 LBC S.A.S.

Name: LIFESTYLE BRANDS OF COLOMBIA S.A.S.

Business: The distribution and representation, purchase and sale, export and import of shoes, sandals, slippers, gloves, purses, bags, and, in general, clothing and personal items made of leather, plastic and similar materials.

Directors and Executives: Gonzalo Darraidou Diaz (Director and CEO of Forus)Sebastian Swett Opazo (Director, CCO of Forus)John Macleod (Director)William J.B. Brown (Director)Christopher E. Hufnagel (Director)

CEO: Alejandro Cruz

Share: 49.00 %

Total Number of Shares: 4,429,913

Subscribed and Paid-In Capital: KCH$1,202,435 Investment: KCH$628,844, representing 0.48% of all of the parent company’s assets.

General Description: A business corporation domiciled in Bogotá, Colombia, incorporated by the General Shareholders Meeting held June 13, 2011. The minutes of that meeting were recorded on June 18, 2011. 49% of the shares were transferred to Forus S.A. at the Second General Shareholders Meeting held April 19, 2012. Its business is the merchandising and sale of footwear and clothing items.

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Historic figures as of December 31, 2012.* Paid out of retained earnings** Paid out of expected earnings in the fiscal year*** To be decided by the Regular Shareholders Meeting in April 2013

The dividend policy states that 40% of the profits earned in the previous fiscal year must be paid out as a dividend.

2012 2011 2010 2009 2008 2007 Final dividend *** $30.37 $18.41 $9.42 $11.11 $8.27Final dividend * $38.69 $37.5 - - -Interim dividend ** $16.00 $13.62 $11.6 $6.0 $7.00 $6.00

Total Dividends $16.00 $82.68 $67.51 $15.42 $18.11 $14.27

The following dividends have been paid in recent fiscal years:

6. Dividend Policy 33

Profit Distribution in the 2012 Fiscal Year

Retained Earnings

Amount of Dividend Type of Dividend

Period of Dividend Payment $ $ Min, Rate Addit Interim

2011 FY Profit 28,424,473,834 7,849,441,754 40% May 2012

Retained Earnings 26,176,927,008

Interim Dividends 4,135,504,000 X November 2012

Minimum Eventual 2012 Dividend 5,274,184,345 May 2013

Total 54,601,400,842 17,259,130,099

2012 Dividend Payments (17,259,130,099)

Retained Earnings before 37,342,270,744

2012 Results

2012 FY Profit 31,365,627,815

Retained Earnings 68,707,898,559

at 12/31/2012

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7. Disclosures

The following disclosures were made during the past year:

(a) On March 21, 2012, the Company Board of Directors adopted a resolution to convene a Regular General Shareholders Meeting to be held April 18, 2012.

(b) The following was resolved at the 21st Regular General Shareholders Meeting held April 18, 2012.

• To approve the Annual Report and Financial Statements of the Company as of December 31, 2011.

• To pay a final dividend totaling CH$7,849,441,754 on account of net profits in the 2011 fiscal year, at a rate of CH$30.36899 per share, in cash, starting May 11, 2012.

• To appoint Ernst & Young as the external auditors of Forus S.A.

• To delegate authority to the Board to choose the risk rating agencies.

• To publish notices of the Company’s Shareholders Meetings in 2012 in Diario Financiero.

(c) On April 19, 2012, Forus S.A. and Wolverine World Wide Inc. (WWW) consummated a joint work agreement on the Colombian market regarding the RKF (Rockford), Hush Puppies, Cushe, Merrell and CAT brands, through Forus Colombia S.A. and Lifestyle Brands of Colombia S.A.S. (LBC). WWW acquired 49% of Forus Colombia S.A., which will sell

the Hush Puppies and Cushe brands in that country. Forus S.A. continues to hold the remaining 51%. LBC was also incorporated, with WWW holding a 51% interest and Forus S.A. the remaining 49%. This company will sell the Rockford, Merrell and CAT brands in Colombia.

(d) On June 4, 2012, Mr. Eduardo Aninat Ureta, independent director, presented his resignation from his membership and the chairmanship of the Company’s Directors Committee for personal reasons.

(e) On June 20, 2012, the Board of Directors accepted Mr. Aninat’s resignation from the Directors Committee and appointed Mr. Francisco Gutiérrez Philippi as a new member of that Committee.

(f) At a Board Meeting held October 24, 2012, payment of an interim cash dividend of CH$16 per share was approved on account of 2012 fiscal year profits. That dividend was paid starting November 23, 2012.

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a) Salaries and Compensation

Director2011 2012

Compens. Compens.Fees FeesProfitShare

ProfitShare

DividendDividend Directors Committee

Directors Committee

Total Total

b) Compensation of the Board of Directors of SubsidiariesDirectors in subsidiaries do not receive any compensation.

c) Expenses of the Board of DirectorsThe Board of Directors of Forus S.A. did not make any expenditure on assistance of any type during 2012.

d) Audit CommitteeAs provided in article 50-bis of Companies Law 18,046 and Circular 1526 of the Securities and Insurance Commission (SVS), the Audit Committee must provide an annual report on its activities that must be presented within the annual report and reported at the corresponding Regular Shareholders Meeting. It is discussed below.The Directors Committee of Forus S.A. is comprised of Francisco Gutiérrez P., Heriberto Urzúa S.

42,844 29,033 45,05948,484

24,242

24,242

24,242

24,242

8,081

16,161

23,954

29,601

45,879

120,361

32,323

29,629

32,323

52,596

10,775

16,161

68,555

71,061

35,531

35,531

35,531

35,531

35,531

35,531

135,156

47,375

47,375

47,375

65,132

35,531

81,410

11,844

11,844

11,844

19,036

8,081

5,387

8,081

2,694

28,354

44,601

8. Salaries and Compensation

Alfonso Swett S.

Alfonso Swett O.

Heriberto Urzúa S.

Eduardo Aninat U.

Ricardo Swett S.

Pedro Jullian S.

Francisco Gutiérrez P.

John Stevenson

Figures in 000’s of historic pesos.

and Alfonso Andrés Swett O. Mr. Gutiérrez is the Chairman, who replaced Mr. Eduardo Aninat as of June 2012.

During the 2012 fiscal year, the Directors Committee met on several occasions to discuss the matters within its purview according to article 50-bis of Law 18,046. It met on February 13, March 21, June 20, August 10, August 22, September 25, October 23, November 16 and December 7. At those meetings it analyzed and approved the matters within its purview according to the law, in particular articles 146 and 147 et seq. of Companies Law 18,046. The matters analyzed, approved and reported to the Board were: Intercompany and related party transactions; The Company’s financial statements according to International Financial Reporting Standard (IFRS), before the dates of presentation to the Securities and Insurance Commission; the opinions presented by External Auditors; inventories,

39

financial and administrative control processes of the company; the variable compensation of division managers; the compensation of senior officers; the internal audit reports and the annual auditing plan; the control of inventories in stores and warehouses; the sale of assets to related companies; the tender of the external auditing service; the Company’s control and fund management processes. It also met personally with the Company’s auditors. The Directors Committee made no specific observations or proposals as a result of its work. The Regular General Shareholders Meeting held April 18, 2012 set a compensation for each member of the committee equal to one-third of the compensation they receive for their directorships, in accordance with Article 50-bis of Law 18046 and Circular 1956 of the SVS. An operating expense

budget was also set for this Committee as the sum of annual compensation to committee members.

Comments and Proposals by ShareholdersThe shareholders in the Company have not made any comments or proposals through the date of this Annual Report.

e) Executive Compensation

f) Severance IndemnitiesNo severance indemnities were paid to executives in 2012.

g) Incentive PlansThe Company pays performance bonuses that are set according to the objectives achieved by each employee.Monthly bonuses are paid to staff in the Distribution and Commercial Areas (18 were paid this year).

Quarterly bonuses are paid to staff in the Production and Commercial Areas (54 were paid this year).Annual bonuses are paid to Division Managers and other executives. A total of 15 were paid this year..

in 000’s of historic pesos

2011 (K$)

1,164,983 1,216,122

2012 (K$)

41

9. Business Activities

9.1 HISTORY

Wolverine World Wide (WWW) is a highly prestigious company the world over, owner of world-class brands and present in more than 60 countries on the five continents. It was founded more than 100 years ago, but its real beginning was in 1883, when Henry O. Krause moved to the United States and began to make shoes.In 1980, WWW started its international expansion by a joint venture with a Chilean business group led by Alfonso Swett Saavedra. This venture would sell its products in Chile. Hush Puppies Chile Ltda. was formed, 30% owned by WWW and 70% by Alfonso Swett Saavedra and Inversiones CGS Ltda.The great success of the Chilean company led it to build its first factory in 1982. The structure was set up as two separate companies that nonetheless worked together to coordinate activities and strategies: Hush Puppies Chile Ltda., engaged in the manufacture, wholesale and exports; and Comercial Puppies Ltda. (retail sales). This latter company owns the chain of stores.Simultaneous to this development, Hush Puppies began to solidify in Chile as a highly prestigious, quality, yet comfortable brand, backed by the ongoing implementation of the latest technologies of footwear design and production. These efforts were supported by effective advertising and marketing campaigns in different means of communication.In 1991, the group led by Alfonso Swett decided to purchase WWW’s interest in the company while still maintaining the close relationship with this major American company. At the same time, the company

was restructured to create Forus S.A., which would handle production, exports, franchises, wholesales and own the licenses; and Comercial Forushop Ltda., which would take care of the operation and administration of the stores (the retail business).The Company continued to operate that way through 2002, the year when the retail and wholesale businesses were merged into one company. Comercial Forushop Ltda. was taken over by its parent company, Forus S.A., on January 1, 2003. Macs S.A., which handled the real estate business of the Forus Group, was also taken over in that merger.In December 2006, Forus consummated going public and has continued to grow via the addition of new brands, of new retail concepts and an international expansion.Uruforus was incorporated in 1990 and it acquired Pasqualini, the leading women’s brand in Uruguay, in 2007. Both companies were merged in 2012, thus consolidating the leadership in this country and bringing the total number of stores to 35.Peru Forus began operation in 2006 with Hush Puppies, Nine West, Rockford and Columbia brands, among others, and it now has 34 stores. Forus Colombia was created in 2007 to sell the Hush Puppies brand in that country. In April 2012, it consummated a joint work agreement regarding the Colombia market with WWW Inc., an American company. This latter acquired 49% of Forus Colombia and Forus Chile acquired 49% of a new company, LBC S.A.S., in which WWW Inc. holds the remaining 51%. At the close of 2012, Forus

43

Colombia and LBC managed 28 stores in Colombia and a large number of wholesale customers. At this date, Forus handles the portfolio of retail brands and concepts described in Sections 9.3 and 9.4

9.2 INTERNATIONAL

9.2.1 URUGUAY

Uruguay’s growth in 2012 was: 29.4% in sales; 10.5% in SSS sales; 36.2% in margins; 40.4% in operating income; and 34.50% in net profits.

The sales growth was due to the addition of 11 stores that accounted for 19% of retail sales and 10.5% of SSS sales. The most prominent chains in this latter regard were DH, with 25.3%, and RKF, climbing 22.6%.

The net outcome was a growth of 34.5% compared to 2011, mainly caused by the 26.2% rise in the gross margin and 40.4% rise in operating income. The new stores accounted for 8.3% of total retail operating income because some of the new stores have not yet achieved an expense structure in harmony with the return expected by the Company.

The highest sales and return in the new chains corresponded to CAT and Merrell. A Shoe Express store was opened at the end of the year to help reduce non-collection inventory.

Finally, in 2012 we continued to adapt the structure to the Company’s new dimension and we concluded the merger of Uruforus with Pasqualini.

9.2.2 PERU FORUS

In 2012, Peru Forus continued with the heavy growth seen in the previous year. Sales rose 27% in dollars and the margin growth was 26%, with billing of US$20.4 million. Operating income also rose 50% and the net profit grew 57%, both compared to the previous year.

In 2012, this Peruvian subsidiary continued to focus on improving the management in its own stores begun the year before. The effort was to have a greater amplitude and depth in purchases, display the product better, train the sales force and invest more in the marketing of the different brands. The sales ratio for the same stores climbed 24.6% in dollars as a result of that effort in comparison to the previous year. Retail sales rose 26% and there was an improvement of one percentage point in the margin. The new store opening plan was accelerated and six new stores in the different chains were opened (3 HPs, 1 RKF, 1 HPKids and 2 Shoexpress) in the second half of the year and 3 other stores were remodeled.

The focus in brands continued to be building the positioning of each through an improvement in the collections as well as more and better investment in marketing.

The progress attained in the department store business in 2011 continued. Displays and promotions of the different products in the portfolio were improved, which enhanced the buying experience for our consumers. The main brands were added to the new formats created by department stores in the year and the new points of sale opened in 2011 were consolidated. As a result, this business grew 28% compared to the previous year.

In 2012, management’s focus was to strengthen the company’s systems and processes and the team in key areas, such as commercial and financial, so that the organization will be ready to maintain the expected growth pace and continue to overcome challenges in the next few years.

9.2.3 FORUS COLOMBIA

In 2012 there was a great and important change in the business model for Forus Colombia because a new partner came onto the scene, adding a more diverse brand portfolio that became the backbone of the business and will enable it to compete more effectively. This involved changes in the corporate structure and in the general vision of growth.

49% of Forus Colombia S.A.S. was sold to Wolverine Worldwide of the United States. Lifestyle Brands

of Colombia was also incorporated in which Forus S.A. holds a 49% interest and Wolverine Worldwide 51%. Both companies–Forus Colombia and Lifestyle Brands of Colombia–do business under one same roof using one same team and they now have a very strong portfolio.

The RFK, CAT and Merrell brands were added in 2012 in the footwear, clothing and accessory categories. They are a part of the new company and complement the existing Hush Puppies and Cushe brands in Forus Colombia. There are significant advantages to this change in business model: better bargaining power with suppliers and customers in general, a wider variety that will attract different types of consumers, and a higher volume that will help dilute fixed costs, to name a few.

45

With this new structure and portfolio, Forus Colombia increased sales by 51% and gross margin by 23% and earned a profit of 3.6% on sales that was a significant improvement compared to 2011. This shows that it is soundly on its way toward the performance expected in the strategic plan.

Finally, Hush Puppies stores were opened in Cartagena and Bogotá by Forus Colombia and 2 Merrell stores and 1 CAT store were opened by Lifestyle Brands of Colombia that joined the more than 100 wholesale customers of the CAT and Merrell brands in Colombia.

9.2.4 TOPSAFETY S.A.

This subsidiary handles the safety footwear and accessories business. In 2012, its sales rose 168% and margins 223%. The operating profit increased 142% and the net profit 163%, going from a loss of 161.8 million pesos in 2011 to a profit of 102 million pesos in 2012.

This reversal came about due to the consolidation of the investments in product development, human capital and infrastructure. The main elements behind these results are a renovation of the footwear collection that introduced new technology and a contemporary design, the hiring of a sales force specializing in nationwide coverage, an improvement in the participation and presence in industrial and specialty retail sales channels.

During the second half of the year, the Norseg Safety brand, with a differentiating product mix, was

added to our portfolio in the more than 30 Sodimac Homecenter Stores. The success of differentiating brands present in the specialty retail channels of Chile (Sodimac and Easy) thus began to consolidate.

Continuing with the defined growth plan, in the second semester we also began to develop a commercial pilot plan to introduce the brand to the Peruvian and Colombian markets. The regional expansion of Norseg Safety is expected to materialize in 2013.

Finally, we continued to work on integrating the systems to Forus. The most recent version of the Oracle ERP was implemented in 2012 and the process for inputting, processing and dispatching orders is planned to be reviewed and optimized completely during 2013.

9.3 BRANDS

The Company has a wide portfolio of its own and licensed brands to cover the different segments of the footwear and clothing market.

We have a close and long relationship with our licensors that has enabled us to work with these brands successfully for many years.

HUSH PUPPIES Quality, comfort and proximity make this the great casual footwear brand in Chile. It started in the USA and arrived to Chile in 1980. It has a great category and leadership and creates new concepts of products, stores and communication. Its more than 30 years

47

NINE WEST This is the great New York women’s brand that produces shoes for all occasions and those shoes impose fashion trends. Nine West shoes are attractive and have that distinctive touch of New York, the world fashion capital.

SEBAGO In addition to traditional nautical footwear, this great American brand offers innovative shoes in 85 countries with multi-color designs that combine tradition and energy with a clear vision of the future.

SANUK In Thai, Sanuk means entertainment, but in California, it means footwear design inspired in the creativity of free spirits who want to relax in comfort. The Sanuk exclusive technology for the manufacture of sandals lets the foot bend and flex 100% naturally. Smile … pass it on.

MOUNTAIN HARDWEAR A great brand with a mountain focus and lifetime warranty. It emphasizes improving yield for clothing, sleeping bags, tents, backpacks and other high performance items that will maximize the challenge for athletes during their journey.

CUSHE This is a lifestyle inspired by surfing. Surfing is the soul of this brand design in Great Britain. It represents the life that all youths dream about, aspire to and try to find. Its philosophy is “do what you like the most”.

AZALEIA It has 21 exclusive stores in Chile. This Brazilian women’s footwear brand is imposing because of its capacity to capture fashion and style at a very good price, just right for the dynamic women of today.

SOREL Boots, ankle boots and shoes with a great vanguardist design. From frozen ground to the city, Sorel creates a shoe for highly stylish and audacious individuals of both sexes. The materials have an exceptional quality apt for a perfect construction and surprising designs.

JAN SPORTBackpacks and bags for fun and discovery. This brand outfits people all over the world with quality, durability and reliability so that they can experiment the adventure of living freely.

CALPANYThis is a long-standing Chilean brand of shoes and

children’s clothing that combines design with the basic aspects of safety, reliability and healthy foot development.

NORSEGThis is a safety brand that has been in Chile for many years. It offers a wide variety of safety footwear and other protective elements for workers.

PATAGONIAPatagonia has been the undisputed leader for more than 30 years on the casual outdoor clothing market. It found a niche for very comfortable, high-quality shoes with a low environmental impact.

of uninterrupted success in Chile and its promise of “walk happy” have made the Chilean consumer loyal to the brand.

HUSH PUPPIES KIDSHealthy feet perspire and need protection. There lies the importance of shoes made of leather or optimal quality material, with a technology that provides support, protection and cushioning where feet really need it, added to simple designs that also have an air of poetry about them. RKF - ROCKFORD RFK is looking for the meeting point between man and nature in a world that is moving forward more quickly each day. We do not take time to appreciate and enjoy the simple things in life. All we need to do is stop for one moment to realize that nature is inviting us to discover and enjoy it at any time.

COLUMBIA It has been the leader in the outdoor world in the United States for more than 70 years. It is always innovating in an effort to interpret active sports enthusiasts. Its clothing is functional, high quality, and its footwear and accessories are made with differentiating technologies that give them added value and set them apart from other brands.

CAT We hold a license from Caterpillar Inc., the world leader for more than 100 years in the manufacture of heavy machinery. CAT Footwear is urban, unisex footwear that wants to break with tradition, face life more freely and feel different sensations.

MERRELL Merrell wants people to get out of the house and trek, walk or simply watch the sunset. That is its philosophy …. Live outdoors with its shoes and garments and forget about your daily troubles.

49

MONTRAILThis great American sneaker brand is resistant and cushioned for running through the mountains. Thanks to its thick soles, it is very comfortable on rocky paths and has excellent traction.

WE LOVE SHOESThis is Forus’ own brand. It is in an international shoe for women and its style is adapted to the modern exigencies of personal image that prevail in everyday city life, reflecting the vanguard trends that are imposed by European fashion through sensual collections that provoke emotional responses.

TNS by TENNIS This is a very successful Colombian unisex clothing brand with fresh, vanguard designs. TNS has 120 stores throughout Latin America and is present in Colombia, Venezuela, Ecuador, Uruguay, Curacao and Chile. A timeless beauty of refined bearing. Innovation without giving up craftsmanship. Minimalist, classic, yet modern garments. Elaborate designs made of comfortable and resistant fabrics. For her, adaptable and feminine clothing. For him, functional designs. You can dress in an attractive, simple and tasteful style.

PASQUALINIThis is a great footwear and purse brand for Uruguayan women and is number 1 in recall. Inspired by Italian design, the latest trends, careful molds, the best leather and hardware, Uruguayan labor and select imported models. A cozy environment, personal attention and an international store design with a varied Pasqualini collection that this year added the NINE WEST brand to its stores, thereby strengthening both.

BROOKSThis is an American brand, owned by the group led by Warren Buffet and is, today, the number one running shoe in the United States. It is a favorite of elite athletes because of its great design and modern

technology that avoid injuries, provide comfort and improve the athlete’s performance. It organizes succesful marathons every year and offers exclusive collections of women’s garments and shoes under the Brooks Body and Soul concept.

CHACOThis is the extraordinary outdoor footwear brand of Wolverine Worldwide. It was developed especially for river-related activities, like rafting and kayaking, but is also good for regular city wear. It is always in harmony with the adventurous spirit of the young and promises healthy feet and a healthy body.

WOLVERINEWolverine has made a difference in the life of American workers since 1883, who have enjoyed since then a fully reliable and highly valued shoe. It is a true leader that was founded on the promise of creating a comfortable and safe product in which you can walk a thousand miles.

9.4 RETAIL

In 2012, Forus had 16 store chains in Chile: Hush Puppies, Hush Puppies Kids, Rockford, Columbia, Funsport, Azaleia, Calpany, Nine West, Dhouse, Shoe Express, Merrell, Mountain Hardwear, CAT, Brooks, We Love Shoes and TNS.

In 2012 we focused on products, stores and staff:

Product: Excellent display with a permanent control of all formats through the visual merchandising team for each of the store chains.

Stores: Keep our formats attractive to our customers through maintenance and remodeling.

51

Staff: Ongoing training so that our customers’ buying experience is optimal and recognized. We also taught courses to our store heads that focused on Leadership, Teamwork and Customer Service.

9.4.1 Hush Puppies:

This chain targets the family. Fashion takes on life, the spaces are ample, elegant and welcoming. The renowned brands mingle well, valued by our customers, and their buying experience is guaranteed to be satisfactory not only because of our supply of brands and products but also because of our service.

9.4.2 DHouse:

This store chain is aimed at the family that likes to wear shoes and clothes made by brands renowned and appreciated on the market, but that entail associated benefits. They are for buyers looking for an attractive and varied offering in space that invites them to browse the entire range of products that the chain has developed especially for them.

9.4.3 Hush Puppies Kids:

This chain of mixed stores is geared towards mothers. There they will discover a different world of footwear and clothing for their sons and daughters that create one’s own style, free and fashionable, bathed in a concept of quality and technology. The stores are designed to be entertaining so that our customers—children—can also discover and create their own style.

9.4.4 Rockford:

This chain targets men and women who cultivate a natural and free lifestyle and want to make their purchases in entertaining areas that awaken their senses and give them a full, satisfying buying experience like they deserve.

9.4.5 Columbia:

This chain targets men and women through high technology products, focused on an exigent customer who likes to protect himself outdoors with the latest products apt for each occasion.

9.4.6 Funsport:

This store chain is oriented towards the casual sports world of families, men, women and children who prefer to dress comfortably and look for stores where they can buy fashionable, technological products representing trends in value brands.

9.4.7 Nine West:

This is a chain for the women of fashion who seek to set themselves apart and make purchases that represent their own personal style, women who want to look different, who prefer the experience of buying when they make the decision of where and what to buy, who feel that these products were created especially for them.

53

9.4.11 Azaleia:

This chain is geared towards women who like to be in fashion, for the modern woman who needs to look well, who makes her buy a comfortable experience in a pleasant environment marked by cordial service.

9.4.12 CAT

An urban lifestyle unique for men and women with a young, joyful and strong spirit. The designs and qualities are unique in footwear and the clothing and accessories original. The chain identifies with a customer that loves the CAT brand, which has represented for years its strength and its ongoing innovation.

9.4.8 Calpany:

This is a chain of children’s stores targeting mothers who like to dress their children fashionably, who value design and colors in their purchases. Mothers who enjoy choosing and combining products for their children to look great. They want to buy in comfortable stores in their own time, often with no hurry, merely for the purpose of dressing their children in the different trends of the moment.

9.4.9 Shoe Express:

This is a chain where families looking for buying “opportunities” can make their purchases in a comfortable store where they will “always” find a variety of products and prices, expeditious attention and service that will encourage them to buy more than once and more than just one product.

9.4.10 TNS:

This brand is geared towards young people who share a lifestyle and promote dynamism, freshness, energy and creativity that sets their attitude apart. The environment and concept is that of a recycle store, unique in Chile, a retro style where each piece is found among antiques and demolitions, something that marks the difference.

55

9.4.13 We love Shoes

WLS provides the woman who feels like a woman a chain of its own stores that understands her real tastes and needs and offers the best brands and latest fashions from the world of casual and outdoor wear that will surprise her. We Love Shoes: a woman’s dream come true.

9.4.14 Merrell

This chain targets buyers looking for different, unique products who feel they are modern, looking for something esthetical that revolves around nature.

9.4.15 Mountain Hardwear

This chain aims for women and men who like nature and extreme sports and require protection from extreme conditions.

It is geared mainly towards mountain climbers looking for high-tech clothing and accessories that protect them from low temperatures.

9.4.16 Brooks

The Brooks stores are oriented toward people of both sexes who like to exercise, be it in a gym or outdoors. The running products of this international leader are perfectly adapted to these activities and have modern, aesthetical designs.

9.5 OUR INDUSTRY

Forus is a part of the constantly expanding retail industry. This means that it faces great competition as more international businesses arrive on the scene and there are improvements in the development and implementation of specialty retail concepts.

One of the drivers behind this growth in the clothing and footwear industry is the number of square meters resulting from the expansion and opening of new malls. Added to this is a consumer with more buying power, a better outlook and job stability, and a good understanding of the technology tools that will optimize the buying experience in the different formats encompassed by the multiple channel model.

The east, mainly China, continues to be the main source of clothing and footwear, although new alternatives are being developed in Asia and in our region (Brazil).

The success of the business will come from having an attractive supply of products and brands that can meet the needs of consumers. Consumers are better and more informed and will take into account in their purchases variables apart from the price-quality ratio, such as technology, status, and comfort.

9.6 PRODUCTION AND SALES The Company’s sales totaled MCH$170,768 in 2012 and evolved as follows:

Nominal millions of pesos

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MCH$

Consolidated Sales180,000

160,000

140,000

120,000

100,000

Nominal millions of pesos

YEAR

EBITDA 11,152 17,171 19,299 17,014 24,142 37,633 42,495

2006 2007 2008 2009 2010 2011 2012

The consolidated EBITDA was MCH$42,495 in 2012, a rise of 13%

compared to the previous year:

80,000

60,000

40,000

20,000

0

57

2004

30,000

35,000

25,000

20,000

15,000

10,000

5,000

0

2005 2006 2007 2008 2009 2010 20122011

Nominal millions of pesos

MH$

Net ProfitEBITDA Margin

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%11.1%

13.0%14.7%

17.6%

19.0% 18.3%

16.3%

20.0%

26.4%

24.9%

0

In 2012, the EBITDA margin accounted for 24.9% of revenues:

9.7 MAIN PROPERTIES AND EQUIPMENT

Forus’ profits rose 10% in 2012 in comparison to the previous year:

LAND AND BUILDINGS

MACHINERY AND EQUIPMENT

NET VALUE IN KCH$

Valor Neto M$

Froilan Roa Property, Departamental (land)

Computer equipment

1,100,000

1,102,435

513,414

6,213,496

2,456,373

796,909

420,564

12,603,191

491,312

1,049,423

11,581,993

13,122,728

Main offices of Peru Forus

Store installations

Distribution Center (building and facilities)

Total

Land and Building in Maipu under lease

Stores in La Serena

Property on Principe de Gales Avenue (land)

Total

Froilán Roa Property, Departamental (buildings and facilities)

Furniture and tools

* All property is insured.

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9.8 MAIN LICENSES OF THE COMPANY The Company holds licenses for its brands that include: Hush Puppies in Chile, Uruguay, Paraguay, Bolivia, Colombia and Peru. This license was first granted in 1983 and has been extended several times, the present license now in effect for 14 years. Nine West in Chile and Peru, starting in 1995 and now in a 6-year extension. Caterpillar in Chile, Uruguay and Bolivia, starting in 1994 and now in a 7-year extension. Merrell in Chile and Uruguay. The first contract dates back to 2001 and the present extension is for 5 years. Columbia in Chile and Peru, starting in 1993 and now in a 5-year extension.

Brooks in Chile and Peru. The first license agreement was in 1998 and the present extension is for 13 years. Azaleia in Chile, for 9 years. Cushe in Chile, Peru, Uruguay and Colombia, for a period of 5 years. TNS in Chile, Uruguay and Peru, for 8 years.

9.9 MAIN CUSTOMERS

In addition to end customers who buy in our own store chains throughout the country, our major wholesale customers in Chile are Cencosud, Falabella and Ripley.

Wolverine Inc.

Columbia Sportswear Company

Brooks

Cencosud Shopping Centers S.A.

Mall Plaza Group

Tropic Production Co. Ltd (RKF)

Parque Arauco S.A.

Radic y Bonacic-Doric Diseño Inv. y Ase. Ltd

Azaleia

Diseño y Construccion Q Ltda.

20.5%

9.5%

2.8%

2.3%

2.2%

1.5%

1.4%

1.4%

1.1%

1.1%

9.10 MAIN SUPPLIERS

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10. Areas of the Company

10.1 OUR FACTORY Our factory division continued in 2012 with its aim of strengthening production by the manufacture of innovative and contemporary high value footwear in line with demand, which presented notable competitive advantages, mainly in women’s casual footwear for the winter collections, the care and warranted use of natural, prime quality materials, comfort and durability.

The Factory Division earned an operating profit in 2012 because it was highly efficient and improved its competitiveness against imported products. This positioned our factory with true comparative competitive advantages in regard to quality, service and an excellent job climate compared to factories around the world.

The Factory Division continued to develop novel and modern products. It was able to export footwear to all of the company’s subsidiaries for both the Hush Puppies and Pasqualini brands and it continued to manufacture the Wall Street and J. Lloyd footwear, which are sold in our Shoe Express chain. It also consolidated, together with Top Safety S.A., its development of safety shoes under the Norseg Safety brand.

The team at the Factory Division continued to

maintain and strengthen its efficient, effective and innovative performance. It was able and willing to undertake greater challenges with shorter collection implementation times and to provide all types of productive, technical and after-sale service to all brands and subsidiaries of the Company that require a warranted quality. Yet it never, at any moment, lost sight of the operating excellence that our entire production process must maintain. 10.2 HUMAN RESOURCES

In 2012, human resources management centered on continuing to encourage the development of collaborators through the Forus University Program. We have been able to strengthen internal talent and implant Forus’ DNA, in addition to aligning everyone with the policies, values and strategies of the Company that will contribute to its success.

In the objective of having the best candidates to cover the needs of the different areas, the company maintained recruitment and selection agreements with different universities and technical and professional training centers, in addition to having psychological and technical evaluation systems in harmony with our era and needs. This was helpful in selecting the most suitable candidates according

63

to the Forus DNA and culture. In our Retail area in particular, we have special recruitment and selection methods and agreements in place with institutions like the Catholic University, the University of Chile, the University of the Andes, Andres Bello University, Central University, Universidad del Desarrollo, Saint Thomas University, Inacap, Duoc, the Nocedal and Almendral Schools, the Manuel Montt Polytechnic School, among others, that help us maintain a sales force in harmony with our challenges.

We are developing training programs for executives, retail employees and factory workers in this important process to train our collaborators so that they acquire the know-how, knowledge and practice that will improve their performance. We not only want to value the most skilled and valuable staff, but also to emphasize retaining them.

Of particular note is the fact that our employees in the different areas of our company were trained this year to refresh, specialize and perfect their knowledge through courses, seminars and workshops. The goal was to motivate them to increase their skills and abilities and thus increase productivity. This has reinforced their commitment to the organization.

Different courses and talks were given to executives as part of the Forus University 2012 program. Our managers and well-known national professionals gave talks and taught courses on current events and the reality of Forus and the world. Subjects included the Crisis in Europe, Digital Marketing, Knowing Retail, Forming Teams, Production Quality and Consumer Relations.

Our factory collaborators are a cornerstone in the Company’s training program. For that reason, we worked on giving them continuing opportunities

in the year to improve their techniques so as to strengthen levels of productivity and efficacy in their work and gain personal growth through integration activities and teamwork.

The main courses given were Making Footwear, English, Preventing and Handling Stress, Using Excel, Handling and Using Extinguishers and Automobile Mechanics.

In-house courses were given on an ongoing basis by Chain Managers as part of the Retail Area Activities. Key issues were addressed, such as management indicators, which are highly useful in adequately administrating stores. Training programs were also implemented in this area to train new store heads in order to enable them to develop professionally inside the Company.

Twice a year it is our custom to launch new collections in order to introduce our sales force to the new products, trends and technologies of the season. Other matters covered were Personal Finance, Store Risk Prevention (e-learning and classroom), and Labor Laws.

We achieved the proposed Human Resource objectives in the different areas this year. Those goals aimed to refresh the knowledge of collaborators through new techniques and methods that guarantee efficiency, personal and professional development.

Entrepreneurial Social Responsibility

The Company follows the guidelines of the Board of Directors in the ongoing development of its ESR and Working Life Quality Program. It continued to implement the Improving Job Competitiveness Model of the Sustainable Development and Social

people at social risk due to alcohol and drugs, we continued with the close bond and exchange of aid with the La Esperanza Shelter, which is an NGO. And we continued with our tradition of fostering solidarity among collaborators and the Koinomadelfia Children’s Home where these children are sponsored at Christmas time to give them a moment of affection and intimacy. We also made several contributions to different aid organizations and neighborhood councils close to our offices in La Florida, as a form of community aid.

We at Forus are convinced that our main capital to improve productivity and set us apart are people. We have therefore proposed a great challenge of making “Forus a better place to work.” That goal would not be possible without the support of all our collaborators, their families and the community at large, to whom we are grateful. We hope to continue with this close bond of mutual trust.

10.3 SYSTEMS AND ADMINISTRATION

We updated our Oracle Financial ERP System into the R12 version during 2012 in order to support the growth of the Company and the growing number of transactions. This was also aided by the acquisition of new servers with a greater capacity and speed that will enable us to integrate the record of transactions by our subsidiaries. We also implemented Oracle in Top Safety and we will begin implementation in other subsidiaries.

The foreign trade system was also improved in order to make our cargo more visible and traceable from origin to arrival at the warehouse.

Several KPIs and management reports were automated in the distribution centers to improve

Responsibility Liaison Center (of the Catholic University of Valparaíso). This model was implanted in the company in 2007 and since then it has been implemented and developed continuously. It is aligned to the new international standards of entrepreneurial management according to the new ISO 26000 Social Responsibility standard and principles of the ILO.

This model was implemented for the first time in our subsidiaries in Peru and Colombia in 2012 and it created interaction between the Company and Collaborators. We also conducted the first job quality-of-life survey to learn what our collaborators think, and what their needs and desires are. This will lead to initiatives to improve the quality of working life.

The ESR and Working Life Quality Area continued to focus on fostering the policy of closeness between the Company, collaborators and family through the Welfare and Prevention Department. The intent is to promote job safety and health and at the same time create instances of recreation and entertainment. These directives strengthen the bond between the Company and its collaborators.

Activities of note that were highly valued by collaborators were the Worker of the Month recognition, the Family Workshop of the United Family Foundation, and the Get Acquainted breakfast in Santiago and in Regions.

It is very important to Forus that it continues to support and contribute to the Community and Education through financial aid and the sponsoring of athletics by different institutions. We can highlight the contribution to the Child Protection Foundation, the Nocedal and Almendral Schools of the Nocedal Foundation. In order to help

65

efficiency measurements in our Logistics and Distribution processes. We are also working on defining mathematical models to optimize stocks.

The contingency site was completed, which will guarantee continuous and complete transactional operation at all times.

In stores, we worked on adding the loyalty and campaign applications in order to stay on top of who our clients are and what they want. A large number of POS were also replaced by new, modern terminals.

10.4 LOGISTICS AND DISTRIBUTION

In 2012, we optimized distribution at the new Distribution Center and began a project with

Asian suppliers called Upstream Integration. These steps are being taken in the endeavor to modernize the distribution platform in line with the Company’s strategic plan. This means supporting the Company’s growth, reducing costs, improving service, integrating with our suppliers and simplifying processes.

We continued with process improvement in the Retail Area, which resulted in a satisfactory supply to stores. The Distribution Center began a new process of store supply based on mathematical algorithms, which increased the exigency of sending products to chains. The effort was a success thanks to the team, which demonstrated its commitment, coordination, ability to manage product flows and to develop new freight suppliers.

In the wholesale area, we continued to improve customer service through integration with the logistics areas, the introduction of technology and a continuing measurement of service indicators.

We also started up new store supply logistics, logistics for transfers between stores and for receiving imports. We were able to increase the cross-docking volumes and flow-through to our stores and customers.

An intensive program for motivation and training of the Distribution Center Staff was developed in complement to process improvements. This increased productivity and improved the job climate.

Logistics and Distribution continued to modernize its processes in order to be aligned with the inventory reduction plan that is being implanted in the Company. The planning at Distribution Centers had to be improved as did the speed in some process areas.

In its first year of operation, the new Distribution Center was able to capture the planned cost savings, which are grounded on an increase in productivity in the different processes performed at the new facilities.

67

11. Risk Factors

The Economy

The evolution of the economy and its macroeconomic parameters have a direct influence on the performance in our business. The consumers’ expectations, confidence and the level of employment drive consumption. A drop in demand and worsening of economic activity can have an adverse impact on the company’s revenues and profits.

Exchange Rate

As imports are predominant in the Company and its subsidiaries, we are exposed to variations in the exchange rate and volatility is the most complex risk to control.

The Business

The Company diversifies its markets by developing store chain formats aimed at different consumer segments. It also constantly increases local and international geographic coverage. On a supply level, it has founded solid relations with the owners of the brands and its suppliers.

69

MAIN INDICATORS

EBITDA

Ebitda / Revenues

Current Ratio

Debt Ratio

ROS

ROE

Assets

Liabilities

Revenues

Net Profit

MCH$

%

times

times

%

%

MCH$

MCH$

MCH$

MCH$

19,299

18.3

5.2

0.19

11.1

15.1

90,676

14,429

105,716

11,426

17,014

16.3

5.6

0.24

9.4

12.5

97,590

18,706

104,354

9,827

24,142

20.0

4.06

0.29

16.0

23.5

105,967

23,483

120,837

19,394

37,663

26.4

3.18

0.35

20.0

31.1

123,824

32,390

142,351

28,424

42,495

24.9

4.46

0.23

18.4

28.4

137,464

26,022

170,768

31,366

UNIT 2008 2009 2010 2011 2012

12. Investment and Finance Policies

The Company made consolidated investments for approximately CH$8 billion in 2012, as shown in the statement of cash flow. Close to 70% of that investment was made in Chile.

Historically, the Company has maintained a low level of debt, with a leverage of 0.24% for 2012. It maintains readily available cash for more than MCH$27,000, which gives it a sound position from which to make investments, combined with credit facilities.

71

Statistics on Stock Exchange Trading

Nº of Shares

Nº of Shares

Nº of Shares

Electronic Exchange of Chile

The related party transactions in 2012 were:

There were no related party share transactions during 2011.

Comercial Spac Ltda. RicardoSwett S. 74,696 - 2,000 149,392 Financial

investment

Share Exchange Trading Statistics

Name of Shareholder Related to Nº of shares purchased

Nº of shares sold

Unit PriceCH$

Total KCH$ Type

Closing

High

Low

Exchange Equity

Profit per Share

CH$/shr

CH$/shr

CH$/shr

millions CH$

CH$

1,525

1,570

623

394,165

75.0

1,384

1,800

1,100

357,721

110.0

2,695

2,700

1,399

696,445

121.4

Quarter

1st - 2011

2nd - 2011

3rd - 2011

4th - 2011

1st - 2012

2nd - 2012

3rd - 2012

4th - 2012

11,148,281

8,008,017

5,495,549

18,169,621

18,095,696

16,768,517

9,192,189

11,135,312

16,149,997,427

13,169,455,248

7,442,842,954

25,262,290,833

27,436,133,739

34,081,065,430

19,414,549,196

27,551,683,798

610,244,690

283,339,188

357,430,082

338,027,456

546,340,353

2,299,210,221

106,756,061

1,850,409,661

1,448.65

1,644.53

1,354.34

1,390.36

1,516.17

2,032.44

2,112.07

2,474.26

1,448.12

1,642.02

1,362.68

1,321.83

1,679.12

2,004.32

2,169.75

2,481.68

-

1,275

2,195

-

-

450

-

22,685

-

1,574.51

1,287.97

-

-

2,085.50

-

2,670

-

2,007,500

2,827,100

-

-

938,475

-

60,568,045

410,077

172,555

262,300

255,726

325,373

1,147,129

49,202

745,627

Santiago Stock Exchange Valparaiso Stock Exchange

Average Price

Average Price

Average PriceAmount CH$ Amount CH$ Amount

CH$

Share Price 2010 2011 2012

13. Related Party Share Transactions 73

FORUS VS SELECTIVE STOCK PRICE INDEX (IPSA)

180

160

140

120

100

80

60

40

20

0

Ene

11 Feb

Feb

Mar

Mar

Abr

Abr

May

MayJun

Jun

AgoJu

l

Jul

AgoSep

Sep

Oct

Oct

Nov

Nov

Dic

-12

Dic

-11

FORUS

IPSA

Ener

-12

75

Consolidated Financial Statements

FORUS S.A. AND SUBSIDIARIES

December 31, 2012 and 2011

79

FORUS S.A.AND SUBSIDIARIESConsolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A.AND SUBSIDIARIESConsolidated Financial Statements

December 31, 2012 and 2011

Note 2012 2011 ASSETS K$ K$ Current Assets Cash and cash equivalent (5) 14,786,792 20,453,487 Other current financial assets (6) 25,739,207 18,409,893 Other current non-financial assets 1,579,201 1,883,708 Trade receivables and other accounts receivable, current (7) 19,080,798 16,270,060 Current accounts receivable from related parties (14) 690,007 3,663 Inventories (15) 39,356,323 35,739,775 Current tax assets (12) 1,817,990 279,946 Total current assets 103,050,318 93,040,532 Non-current assets Other non-current financial assets 399,389 344,757 Other non-current non-financial assets 1,389,642 1,063,841 Non-current fees receivable 159,371 153,156 Investments accounted for by the equity method (8) 1,816,751 1,116,981 Intangible assets other than goodwill (9) 1,918,439 1,892,768 Goodwill (10) 1,267,144 1,312,137 Property, plant and equipment (11) 25,379,126 22,753,729 Deferred tax assets (12) 2,083,771 2,146,263 Total non-current assets 34,413,633 30,783,632 Total Assets 137,463,951 123,824,164

The attached notes 1 to 34 form an integral part of these consolidated financial statements.

Note 2012 2011LIABILITIES K$ K$ Pasivos Corrientes Other current financial liabilities (17) 2,751,733 6,686,816Trade payables and other accounts payable (19) 9,401,241 9,566,036Current intercompany accounts payable (14) - -Other short-term provisions (20) 1,019,236 888,227Current tax liabilities (12) 117,534 3,172,965Current employee benefit provisions (21) 2,867,073 2,510,275Other current non-financial liabilities (22) 6,933,181 6,459,326Total current liabilities 23,089,998 29,283,645 Non-Current Liabilities Other non-current financial liabilities (17) 1,920,553 1,948,120Deferred tax liabilities (12) 765,563 864,502Other non-current non-financial liabilities (29) 245,906 294,198Total non-current liabilities 2,932,022 3,106,820Total Liabilities 26,022,020 32,390,465 Equity Issued capital (16) 24,242,787 24,242,787Retained earnings 68,707,899 49,594,407Issuance premiums 17,386,164 17,386,164Other reserves 81,682 146,154Equity attributable to owners of the controller 110,418,532 91,369,512Non-controlling interests (18) 1,023,399 64,187Total equity 111,441,931 91,433,699Total Equity and Liabilities 137,463,951 123,824,164

81

FORUS S.A.AND SUBSIDIARIESConsolidated Statements of Comprehensive Income

December 31, 2012 and 2011

Note 01,01,2012 01,01,2011 31,12,2012 31,12,2011 K$ K$ Other Comprehensive Income Profit (loss) 31,365,628 28,424,474 Earnings (losses) because of translation differences (64,472) 1,060,370 Total comprehensive income 31,301,156 29,484,844 Income attributable to Comprehensive income attributableto owners of the controller 31,129,753 29,483,189 Comprehensive income attributableto non-controlling interests (18) 171,403 1,655 Total Comprehensive Income 31,301,156 29,484,844

Note 01,01,2012 01,01,2011 31,12,2012 31,12,2011Statements of Comprehensive Income K$ K$ Revenues 170,767,842 142,351,349Costs of sales (less) (73,455,167) (57,654,078)Gross margin 97,312,675 84,697,271 Other income by function 660,154 1,512,174Distribution costs (1,559,106) (1,252,026)Administrative expenses (23) (57,622,935) (50,285,877)Other expenses by function (245,500) (106,662)Other earnings or (losses) (211,230) (380,171)Financial income 1,557,119 813,072Financial costs (410,815) (442,836)Share in earnings (losses) of associates and joint ventures that are accounted for by the equity method (8) 171,926 87,924Exchange differentials (24) (1,011,827) 581,715Income from units of adjustment (25) (35,425) (100,272)Pre-tax profit (loss) 38,605,036 35,124,312Income tax expense (12) (7,239,408) (6,699,838)Profit (loss) from continuing operations 31,365,628 28,424,474Profit (loss) attributable to owners of the controller 31,194,225 28,422,819Profit (loss) attributable to non-controlling interestsProfit (loss) 31,365,628 28,424,474Earnings (loss) per basic share (16) $121,3516 $109,9725

FORUS S.A.AND SUBSIDIARIESConsolidated Statements of Comprehensive Income

December 31, 2012 and 2011

83

FORUS S.A. Y FILIALESStatements of Changes in Net Equity

December 31, 2011 and 2010

Starting balance at 1/1/2012 24,242,787 17,386,164 (423,815) 569,969 146,154 49,594,407 91,369,512 64,187 91,433,699

Changes in equity

Comprehensive Income

Profit (loss) - - 31,194,225 31,194,225 171,403 31,365,628

Other comprehensive income - - (64,472) - (64,472) - (64,472) - (64,472)

Comprehensive Income - - (64,472) - (64,472) 31,194,225 31,129,753 171,403 31,301,156

Increase (decrease) because of other

distributions to owners - - - - (12,252,136) (12,252,136) - (12,252,136)

Increase (decrease) due to

transfers and other changes - - - - 171,403 171,403 787,809 959,212

Total changes in equity - - (64,472) - (64,472) 19,113,492 19,049,020 959,212 20,008,232

Ending Balance at 12/31/2012 24,242,787 17,386,164 (488,287) 569,969 81,682 68,707,899 110,418,532 1,023,399 111,441,931

Starting balance at 1/1/2011 24,242,787 17,386,164 (1,484,185) 569,969 (914,216) 41,636,622 82,351,357 132,734 82,484,091

Changes in equity

Comprehensive Income

Profit (loss) - - - - - 28,422,819 28,422,819 1,655 28,424,474

Other comprehensive income - - 1,060,370 - 1,060,370 - 1,060,370 - 1,060,370

Comprehensive Income - - 1,060,370 - 1,060,370 28,422,819 29,483,189 1,655 29,484,844

Increase (decrease) because

of other distributions to owners - - - - - (20,466,689) (20,466,689) - (20,466,689)

Increase (decrease) due to

transfers and other changes - - - - , 1,655 1,655 (70,202) (68,547)

Total changes in equity - - 1,060,370 - 1,060,370 7,957,785 9,018,155 (68,547) 8,949,608

Ending Balance at 12/31/2011 24,242,787 17,386,164 (423,815) 569,969 146,154 49,594,407 91,369,512 64,187 91,433,699

Issuedcapital

K$

Issuancepremiums

K$

Reserves for translation differences

K$

Total Other miscellan-eous

reservesK$

Retained earnings

(loss)K$

Equity attributable to owners of the

controllerK$

Totalequity

K$

Non-controlling interests

K$

FORUS S.A. Y FILIALESConsolidated Statements of Cash Flow, Indirect Method

For the periods from

Note 1/1/2012 1/1/2011 12/31/2012 12/31/2011 K$ K$Cash flows from (used in)operating activities Profit (loss) 31,365,628 28,424,474 Adjustments because of the reconciliation of profits (losses) Adjustments for income tax expense (12) 7,239,408 6,699,838Adjustments for decreases (increases) in inventories (3,179,055) (9,510,494)Adjustments for decreases (increases) in trade receivables (7,658,295) (5,115,524)Adjustments for decreases (increases) in other receivables resulting from operating activities (5,120,480) (206,687)Adjustments for increases (decreases) in trade payables 1,137,319 3,619,102Adjustments for increases (decreases) in other payables resulting from operating activities 6,924,315 2,666,398Adjustments for depreciation and amortization expenses (23) 4,332,225 4,503,171Adjustments for impairment (reversal of losses due to impairment), recognized in income for the period (23) 31,854 91,897Adjustments for provisions 1,571,909 3,420,631Adjustments for unrealized foreign currency losses (gains) (87,114) (457)Adjustments for non-controlling interests 171,403 1,655Adjustments for undistributed earnings of associates (8) (171,926) (87,924)Other adjustments for items other than cash (195,448) (626,024)Adjustments for losses (earnings) on the disposal of non-current assets -Other adjustments for which the effects on cash are investment or financing cash flows 38,142 -Total Adjustments for reconciliation of profit (loss) 5,034,257 5,455,582Income tax reimbursements (payments) (7,702,923) (2,352,106)Other cash receipts (outlays) (2,513) -Net cash flows from (used in) operating activities 28,694,449 31,527,950

Otherreserves

K$

85

FORUS S.A. Y FILIALESConsolidated Statements of Cash Flow, Indirect Method

For the periods from

Note 1/1/2012 1/1/2011 12/31/2012 12/31/2011 K$ K$

Cash flows from (used in) investing activities Other income from the sale of equity or debt securitiesof other entities, classified as an investment 840,506 -Other payments to acquire interests in joint ventures (618,975) -Loans to related parties (2,103,647) -Proceeds from the sale of property, plant and equipment 46,879 12,510Purchases of property, plant and equipment (11) (7,723,631) (8,115,048)Purchases of intangible assets (9) (328,064) (249,190)Purchases of other long-term assets (19,169) (416,887)Payments under forwards, term contracts, option contracts andcross-currency swaps classified as investing activities (354,030) (133,180)Collections under forwards, term contracts, option contracts andcross-currency swaps classified as investing activities 270,040 97,940Collections from related parties 1,421,822 1,216Dividends received (8) 235,969 48,046Interest received, classified as investing activities 206,393 145,610Other cash receipts (outlays) (6,671,365) 5,223,804Net cash flows from (used in)investing activities (14,797,272) (3,385,179) Cash flows from (used in) financing activities Proceeds from short-term loans 21,867,443 23,878,985Total proceeds from loans 21,867,443 23,878,985Payment of loans (29,480,125) (20,838,241)Payment of loans to related companies - -Dividends paid (16) (11,984,946) (18,279,492)Interest paid, classified as financing activities (6,288) (13,391)Other cash receipts (outlays) 18,312 (961)Net cash flows from (used in)finance activities (19,585,604) (15,253,100)Net increase (decrease) in cash and cash equivalentbefore the effect of changes in the exchange rate (5,688,427) 12,889,671 Effects of the variation in the exchangerate on cash and cash equivalent Effects of the variation in the exchange rate oncash and cash equivalent 21,732 26,565Net increase (decrease) in cash and cash equivalent (5,666,695) 12,916,236Cash and cash equivalent at the start of the period 20,453,487 7,537,251Cash and cash equivalent at the end of the period (5) 14,786,792 20,453,487

FORUS S.A. Y FILIALESNotes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 1 – Corporate History

Forus S.A., taxpayer identification number 86.963.200-7, the parent company, is an open corporation that was incorporated under the corporate name of Comercial Hush Puppies Chile Ltda. by public deed dated August 29, 1980, executed in the Notarial Office of Enrique Morgan Torres in the city of Santiago. The Company was registered on October 30, 1998 under No. 649 in the Securities Registry kept by the Securities and Insurance Commission. Consequently, it is overseen and controlled by that Commission.

The by-laws of “Comercial Hush Puppies Chile Ltda.” were amended on December 20, 1991. The main amendments were:

a) The interest of Wolverine World Wide Inc. (30%) was sold. Costanera S.A.C.I. bought 29% and Sebastián Swett Opazo 1% of that interest.b) The Company was converted from a limited liability company to a stock corporation.c) Its name was changed from “Comercial Hush Puppies Limitada” to “Forus S.A.”

The Company engages mainly in the manufacture, import and sale of footwear, clothing and accessories in Chile, Peru, Colombia and Uruguay.

The Company’s main offices and registered offices are at 01053 Departamental Avenue in the borough of La Florida, city of Santiago, Chile.

The ultimate parent company of Forus S.A. is Costanera S.A.C.I., which is registered under No. 1054 in the Securities Registry kept by the Securities and Insurance Commission.

Note 2 – Summary of Main Accounting Standards

a) Period covered by the financial statements

These consolidated financial statements include:

87

Note 2 – Summary of Main Accounting Standards (continuación)

a) Period covered by the financial statements (continuación)

- The consolidated statements of comprehensive income for the 12-month periods ending December 31, 2012 and 2011.

- The statements of changes in net equity for the 12-month periods ending December 31, 2012 and 2011.

- The consolidated statements of cash flows (indirect method) for the 12-month periods ending December 31, 2012 and 2011.

b) Preparation

These consolidated financial statements of Forus S.A. and Subsidiaries were prepared according to International Financial Reporting Standards (IFRS) and interpretations thereof issued by the International Accounting Standards Board (hereinafter IASB), as prevailing at December 31, 2012. They have been applied in full without reservation.

These consolidated financial statements fairly reflect the financial position of Forus S.A. and Subsidiaries at December 31, 2012, December 31, 2011 and the results of operations for the 12-month periods ending December 31, 2012 and 2011 as well as the changes in net equity and cash flows for the 12-month periods ending on those dates. Said statements were approved by the Board of Directors at its meeting held February 27, 2013.

These consolidated financial statements have been prepared using the accounting records kept by the parent company and by other companies forming part of the Group. Each company prepares its financial statements following the accounting principles and standards in effect in each country, so the necessary adjustments and reclassifications have been made in the consolidation process to homogenize those standards and principles and then adapt them to IFRS.

Note 2 – Summary of Main Accounting Standards (continuación)

c) Consolidation

The consolidated financial statements contain the financial statements of the parent company and its subsidiaries, and they include all assets, liabilities, income, expenses and cash flows after making adjustments and eliminations for transactions with the companies involved in the consolidation.

Subsidiaries are all companies regarding which the parent company has control, either directly or indirectly, of its Financial and Operating Policies according to IAS 27 on Consolidated and Separate Financial Statements. According to this rule, control is presumed when more than 50% is held of the voting rights of decision-making organs in a company or there is a de facto control. The non-controlling interest represents the part of net assets and of profits or losses that are not the property of the Group, which are presented separately in the statement of comprehensive income and within equity in the consolidated statement of financial position.

The acquisition of subsidiaries is recorded according to IFRS 3 on Business Combinations, using the acquisition method. This method requires that identifiable assets (including intangible assets not previously recognized and the goodwill purchased) and the liabilities of the business acquired be recognized at the fair value on the date of acquisition. The proportion of non-controlling interests held by non-controlling shareholders is recorded at the fair value of the recognized assets and liabilities.

The excess of the acquisition cost above the fair value of the Company’s share in the identifiable net assets acquired is recognized as goodwill. If the acquisition cost is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the statement of comprehensive income.

The financial statements of subsidiaries have been prepared on the same date as those of the parent company and uniform accounting policies have been applied taking into account the specific nature of each line of business.

All intercompany transactions and balances were eliminated in the consolidation.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

89

Note 2 – Summary of Main Accounting Standards (continued)

The consolidated financial statements encompassed the following subsidiaries:

(*) A company incorporated in Uruguay(**) A company incorporated in Peru(***) A company incorporated in Colombia

The interest of non-controlling shareholders in equity and in the income of the consolidated companies is shown under Non-Controlling Interests and Comprehensive income attributable to non-controlling interest.

The Company sold a 49% equity interest in Forus Colombia S.A.S. to Wolverine Worldwide Inc. on April 19, 2012.

On April 30, 2012, Pasqualini S.A. was taken over by Uruforus S.A.

At Shareholders Meeting #19 held July 31, 2012, that the Company changed from a stock corporation to a simplified joint stock company under the name of Forus Colombia S.A.S. a Sociedad por acciones simplificada bajo el nombre de Forus Colombia S.A.S..

Note 2 – Summary of Main Accounting Standards (continued)

d) Translation Method

The consolidated financial statements are presented in Chilean pesos, which is the functional currency of the Parent Company and the group’s currency of presentation. Each entity included in these consolidated financial statements has set its own functional currency, as described in Note 2.c), according to IAS 21.

Assets and liabilities in foreign currencies and U.F. (Unidades de Fomento) were converted to Chilean pesos at the observed exchange rates on the closing date of each of the periods, as follows:

The differences resulting from variations in the exchange rate in the application of this standard are recognized in fiscal year income under Exchange differentials and Income from unit of adjustment, in the case of a variation in the unidad de fomento (U.F.).

The exchange rates at the close of each fiscal year were used to translate the financial statements of subsidiaries abroad, except for i) capital and reserves, which were converted at the historic exchange rate; and ii) the statement of comprehensive income, which was converted at the average monthly exchange rate. The investments in which the Company may exercise a significant influence without having control are accounted for by the equity method. The investments are accounted for initially at cost and the book value is changed according to the interest in the associate’s income at the close of the fiscal year. If that associate records profits or losses directly in net equity, the Company also recognizes its share in those results.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

31.12.2012 2011Taxpayer ID Name of Company Functional Direct Indirect Total Total Currency % % % % Foreign Uruforus S.A. (*) Uruguayan Peso 100,00 - 100,00 100,0096.583.940-2 Topsafety S.A. Chilean Peso 99,89 - 99,89 99,89Foreign Perú Forus S.A. (**) New Peruvian Sol 99,98 - 99,98 99,98Foreign Forus Colombia S.A.S. (***) Colombian Peso 51,00 - 51,00 99,998Foreign Pasqualini S.A. (*) Uruguayan Peso - - - 100,00 Parity 31.12.2012 31.12.2011

$ $US$ 479,96 519,20U.F. 22.840,75 22.294,03Peruvian Sol 188,15 192,51Uruguayan Peso 25,19 26,09Colombian Peso 0,27 0,27

FunctionalCurrency

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Note 2 – Summary of Main Accounting Standards (continued)

e) Property, plant and equipment

Property, plant and equipment are appraised at the acquisition cost, less cumulative depreciation and, if applicable, less potential impairment losses.

The acquisition costs include external costs and internal costs comprised of the consumption of materials in warehouse, the cost of direct labor used in installation and an imputation of indirect costs required to make the investment, if relevant.

The Company and its subsidiaries depreciate property, plant and equipment, except for land, from the moment they become useable and distributes the costs in a straight line over the estimated years of useful economic life.The estimated years of useful economic life are summarized below:

The assets located on leased properties are depreciated either over the period of the lease or over the estimated economic useful life, whichever is shorter.

Estimated residual values and methods and periods of amortization are reviewed at the close of each fiscal year and adjusted prospectively, if relevant.

Note 2 – Summary of Main Accounting Standards (continued)

e) Property, plant and equipment (continuación)

Investments in assets acquired under lease-purchases that meet the requirements to be considered finance leases are also included in this category. These assets are not legally the property of the Company until the purchase option is exercised.

Interest has not been compounded in this line since property, plant and equipment were not acquired using external financing.

The periodic expenses of maintenance, conservation and repair are imputed to income as a cost in the fiscal year in which they occurred. A piece of property, plant or equipment is retired at the time of disposal or when no future economic benefits are expected from use or disposal thereof. Any profit or loss arising from asset retirement is included in the statement of income in the fiscal year in which the asset is retired.

f) Impairment of non-current assets

At each annual closing, an evaluation is made as to whether there are signs of a possible impairment in the value of non-current assets. Should such signs exist, the Company estimates the recoverable value of the asset, which is the higher of the fair value less the cost of sale and the value in use. That value in use is calculated by discounting the estimated future cash flows. An impairment is deemed to exist when the recoverable value of an asset is below its net book value.

In order to determine the calculations of impairment, the Company makes an estimation of the return on assets assigned to different cash-generating units on the basis of expected cash flows.

g) Investments in associates

The investments in which the Company may exercise a significant influence without having control are accounted for by the equity method. The investments are accounted for initially at cost and the book value is changed according to the interest in the associate’s income at the close of the fiscal year. If that associate records profits or losses directly in net equity, the Company also recognizes its share in those results.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Assets Range of years Buildings 10-60Plant and equipment 3-34Fixed facilities and accessories: Fixed facilities 3-5Other accessories 3-10Motor vehicles 3Computer equipment 3Other property, plant and equipment 3-24

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

93

Note 2 – Summary of Main Accounting Standards (continued)

h) Investments in joint ventures

The parent company has an interest in Lifestyle Brands of Colombia S.A.S., which is an entity jointly controlled with Wolverine Worldwide Inc. Forus S.A. holds a 49% interest in that company. An entity jointly controlled or a “joint venture” is a contractual arrangement by which two or more parties conduct a business subject to a joint control. The Company recognized its interest in the joint venture using the equity method, according to IAS 31.

i) Intangibles and Goodwill

i) Goodwill

Goodwill is the excess above the cost of investment in a subsidiary or associate with respect to the Company’s share in the fair value of the identifiable net assets on the date of acquisition. After the initial recognition, the goodwill is measured at cost, less any cumulative impairment loss.

The sum paid over and above the value of net assets in acquisitions of subsidiaries is included in the goodwill account and tested annually for impairment. For impairment testing, the goodwill is assigned to cash-generating units that are expected to benefit from the synergies of the business combination.

The Company tests annually for goodwill impairment as required by accounting standards.

ii) TrademarksTrademarks have been designated intangible assets with indefinite useful lives that are not amortized. Their impairment is evaluated annually. The useful life of an intangible asset with an indefinite life is reviewed annually. If relevant, the change from an indefinite useful life to a finite useful life is made on a prospective basis. Intangible assets with an indefinite useful life were identified as part of the transition to IFRS, so the amounts according to Chilean GAAP as of January 1, 2009 were adjusted to the historic cost on the date of acquisition and then tested for impairment on the same date.

Note 2 – Summary of Main Accounting Standards (continued)

i) Intangibles and Goodwill (continuación)

iii) Other intangibles:

Other intangibles encompass software, licenses and other similar assets, which have been designated intangible assets with a finite useful life based on the duration of the associated agreements, which have also served as the basis to define their period of amortization.

Below are the estimated useful lives for each type of intangible asset and goodwill:

j) Income Tax

The expense on income tax includes income tax per se and deferred taxes, which have been calculated according to governing tax regulations and IAS 12.

Tax assets and liabilities for the present fiscal year and previous fiscal years are measured by the amount that is estimated to be recovered or paid to the tax authorities. Tax rates and fiscal regulations used in calculating those amounts are the rates and regulations prevailing on the closing date of each fiscal year. In Chile, it is 20% (20% also in 2011); in Peru, 30%; in Colombia, 33%; and in Uruguay, 25%.

The amount of deferred taxes is obtained from analysis of the temporary differences arising between the tax and book values of assets and liabilities.

The temporary differences generally become taxable or deductible when the related asset is recovered or the related liability is settled. A deferred tax liability or asset represents the amount of tax payable or reimbursable in future fiscal years according to prevailing tax rates as a result of temporary differences at the end of the fiscal year.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Type Range Goodwill on investment (goodwill bought) IndefiniteTrademarks IndefiniteSoftware 3 yearsLicenses 3 years

95

Note 2 – Summary of Main Accounting Standards (continued)

j) Impuesto a las utilidades

Deferred tax assets and liabilities are not discounted at their actual value and are classified as non-current.

Deferred tax assets and liabilities are presented net in the statement of financial position if there is a legally enforceable right to offset tax assets against tax liabilities and the deferred taxes relate to the same tax entity and the same tax authority.

k) Financial assets and liabilities

All financial instruments that result in a financial asset or liability are recognized at the fair value on the date of the transaction, which is the date when the commitment was acquired.

i) Financial investments

Time deposits are shown at their investment value, together with interest accrued at the close of each fiscal year, which is credited to income.

Other financial investments such as investments in stocks, bonds, mutual fund shares (local and international), investment fund shares and mortgage bills are shown at their fair value at the close of each fiscal year because management has defined them as financial assets held for trading as they are acquired for the purpose of being sold in the short term and are therefore appraised at the fair value with an effect on income.

The fair value of instruments traded actively on formal markets is calculated using the trading prices on the closing date of the financial statements. If there is no active market for investment, the fair value is determined using valuation techniques that include (i) recent market transactions; (ii) references to the present market price of another similar financial instrument; (iii) the discounting of cash flows; and (iv) other valuation models for exceptional cases where none of the above criteria apply.

Note 2 – Summary of Main Accounting Standards (continued)

k) Financial assets and liabilities (continuación)

i) Financial investments

Those investments are managed and kept in custody by entities contracted for those purposes, namely: Celfin Capital, Banchile Inversiones, and IMTrust, which manage the investment portfolio in the manner and according to the parameters defined by the Company.

ii) Accounts receivable

Accounts receivable are financial assets with fixed and determinable payments that are not traded on an active market. Trade receivables are recognized by the amount of the invoice and an adjustment is recorded if there is objective evidence of a risk that the customer might not pay.

The impairment loss is estimated taking into consideration age factors, which reaches 100% for debt beyond 360 days. Moreover, impairment losses are estimated for customers owing debt due in less than 360 days that show some sign of impairment according to financial information or changes in the markets in which they do business or any other information. An individual analysis is made of each, they are each individually monitored and the respective impairment losses are recorded.

Trade credits and receivables are not discounted. The Company and its subsidiaries have determined that the calculation of the amortized cost presents no significant differences from the invoiced amount since the balances of credits and trade receivables are all classified as current.

iii) Cash and cash equivalent

Cash and cash equivalent indicated in the consolidated financial statements covers cash on hand and bank accounts, together with other highly liquid investments or investments maturing at or before 90 days. The items in cash on hand and bank accounts are recorded at the historic cost and highly liquid investments at the historic cost, plus interest accrued as of the closing date of the financial statements.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

97

Note 2 – Summary of Main Accounting Standards (continued)

k) Financial assets and liabilities (continuación)

iv) Interest-bearing loans

Financial liabilities are appraised at the amortized cost using the effective interest rate. Differences between the cash received and the sums reimbursed are imputed directly toward income in the agreed periods. Financial obligations are presented as a non-current liability when they expire beyond 12 months.

v) Financial derivatives

The Company and its subsidiaries use derivatives to manage exchange rate exposure. Its objective is to minimize those risks using the most effective method to eliminate or reduce the impact of them.

All financial derivatives are recognized on the date of signature of the contract and subsequently revalued at their fair value on the date of the financial statements. The gains and losses resulting from the fair value measurement are accounted for in the consolidated statement of comprehensive income as profit or loss through the fair value of financial instruments, unless the derivative qualifies, is designated as, and is effective as a hedge instrument.

The derivatives held by the Company and its subsidiaries correspond entirely to forwards, which have been contracted to hedge against exchange rate exposure. The Company does not meet the formal documentation requirements to classify these instruments as hedges according to IAS 39. Consequently, the effects of those contracts are accounted for directly in income accounts.

Financial derivatives are classified as current or non-current according to whether the maturity is before or after 12 months.

The hedging of risks of exchange rate variations in a firm transaction may be treated as a fair value hedge or as a cash flow hedge.

Note 2 – Summary of Main Accounting Standards (continued)

k) Financial assets and liabilities (continuación)

v) Financial derivatives (continuación)

The fair value of the derivatives portfolio shows estimations that are based on calculations made from observable market data using specific derivative risk management and valuation tools widely used among different financial entities.

vi) Financial assets and liabilities measured at fair value

The fair value of a financial asset or liability on a given date is understood to be the amount at which such asset may be exchanged or said financial liability settled on that date among two independent parties with all available information who are acting freely and voluntarily. The most usual and objective benchmark for the fair value of a financial asset or liability is the price that would be paid for it on an organized and transparent market (Trading Price or Market Price).

The financial instruments accounted for at the fair value in the statement of financial position are classified as follows, based on how the fair value is calculated:

Level 1: Fair value obtained by direct reference to trading prices without any adjustment.

Level 2: Fair value obtained by using the valuation models accepted on the market and based on prices other than those indicated in Level 1, that are directly or indirectly observable on the date of measurement (Adjusted prices).

Level 3: Fair value obtained from internally developed models or methodologies using information that is not observable or are illiquid.

A financial asset or liability is appraised at its amortized cost when it is impossible to determine the fair value.

The Company and its subsidiaries and specialists managing the investment portfolio have opted to use Level 1 to calculate fair value.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

99

Note 2 – Summary of Main Accounting Standards (continued)

k) Financial assets and liabilities (continuación)

vi) Financial derivatives (continuación)

Derivatives have been appraised following the Level 2 method.

There were no transfers in the period between Level 1 and Level 2 or vice versa in the valuation of financial instruments appraised at the fair value.

l) Inventories

Inventories are appraised at the lower of their cost or realizable net value (products in process and finished products), which includes raw materials, labor and manufacturing expenses. The net realizable value is the estimated sale price in the ordinary course of business, less the estimated cost of the sale. The net realizable value is also measured in terms of obsolescence based on the particular characteristics of each inventory item. The Company has set up a provision for low-turnover inventories.

The cost is determined using the weighted average method.

m) Provisions

Provisions are recognized when the Company and its subsidiaries have a present (legal or constructive) obligation as a result of a past event and it is likely that there will be a cash outlay to settle the obligation and the amount can be reliably estimated.

n) Minimum dividend

Article 79 of Companies Law 18,046 stipulates that at least 30% of the net profits in the fiscal year must be distributed as a dividend to shareholders unless the Shareholders Meeting unanimously decides otherwise. Therefore, the Company will recognize a liability for dividend payments at the end of each fiscal year against retained earnings.

Note 2 – Summary of Main Accounting Standards (continued)

ñ) Employee benefit plans

The Company and its subsidiaries provide certain short-term benefits to its employees in addition to salary, such as performance bonuses, vacation pay and holiday bonuses.

The Company and its subsidiaries have no other employee benefit plans within the purview of IAS 19 Employee Benefits.

o) Recognition of income

Income is recognized to the extent that it is probable that the economic benefits will flow to the Company and they can be measured reliably. Income is measured at the fair value of the economic benefits received or receivable and they are shown net of value-added tax, reimbursements and deductions.

Revenues are recognized after the Company and its subsidiaries have transferred the risks and benefits of owning the goods to the buyer and it keeps no right to dispose thereof or to effectively control them. Generally, this means that sales are accounted for at the moment that the risks and benefits are transferred to customers, in accordance with the agreed sales terms.

p) Cost of sales

Costs of sale include the cost of purchasing products sold and other costs incurred to keep inventories in locations and under the conditions necessary for their sale. These costs mainly include the net acquisition cost of discounts, non-recoverable import expenses and taxes, insurance and freight of the products to distribution centers.

q) Earning (loss) per share

The basic earning per share is calculated as the quotient between the net earning (loss) in the fiscal year attributable to the Parent Company and the weighted mean number of shares in the Company in circulation in that period, excluding the mean number of shares in the Parent Company held by the Group, if any.

The Group has not performed any type of transaction that has a potential for dilution that supposes an earning per diluted share different from the basic earning per share.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

101

Note 2 – Summary of Main Accounting Standards (continued)

r) Leases

Financial leases that substantially transfer all risks and benefits inherent to ownership of the leased item to the Company are capitalized at the start of the lease, at the fair value of the property lease or, if lower, at the present value of the minimum rent payments. Assets under a financial lease are depreciated over the estimated economic useful life of the asset or term of the lease, if shorter, and there is no reasonable certainty that the Company will obtain ownership at the end of the lease.

Operating leases are leases in which the Lessor substantially retains all risks and benefits inherent to ownership of the leased property. Operating lease payments are recognized as expenses in the statement of comprehensive income during the term of the lease.

s) Use of estimations

Below are the main hypotheses about the future assumed and other relevant sources of uncertainty in the estimations at the closing date that might have an effect on the financial statements in the future:

i) Useful life and residual values of intangibles and property, plant and equipment

The calculation of useful lives and residual values of components of intangibles with a finite useful life and property, plant and equipment involves judgments and assumptions that might be affected if circumstances change. Management reviews those assumptions from time to time and adjusts them prospectively if any change is found.

ii) Impairment of goodwill and intangibles with an indefinite useful life.

The Company and its subsidiaries determine annually whether the goodwill and intangible assets with an indefinite useful life have become impaired. This test requires an estimation of the “value in use” of the cash-generating units to which the goodwill and intangible assets with an indefinite useful life are associated. The estimation of the value in use requires that management estimate the future cash flows expected from the cash-generating unit and choose an appropriate discount rate to calculate the present value of those cash flows.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 2 – Summary of Main Accounting Standards (continued)

s) Use of estimations (continuación)

iii) Deferred taxes

The Parent Company and subsidiaries evaluate whether deferred tax assets can be recovered based on estimations of future income. That recovery depends ultimately on the capacity of the Company and its subsidiaries to generate taxable profits over the period in which the deferred tax assets are deductible. The analysis takes into consideration the predicted schedule for reversal of deferred tax liabilities and the estimations of taxable benefits based on internal projections that are updated to reflect the most recent trends.

Real income tax collection and payment flows might differ from the estimations made by the Company and its subsidiaries as a consequence of changes in tax legislation or future unforeseen transactions that might affect tax balances.

iv) Net realizable value of inventories

The variables used to calculate the net realizable value are mainly estimated sales prices and additional distribution costs.

v) Provisions

Due to the uncertainties inherent to the estimations required to calculate provisions, real disbursements may differ from originally recognized amounts based on those estimations.

103

Note 2 – Summary of Main Accounting Standards (continued)

s) Use of estimations (continuación)

vi) Fair value of assets and liabilities

In certain cases, the IFRS require that assets and liabilities be recorded at their fair value. Fair value is the amount at which an asset can be bought or sold or the amount at which a liability may be incurred or settled in an actual transaction among duly informed parties under arm’s length conditions other than an involuntary liquidation. The basis for measurement of assets and liabilities at their fair value are the prices prevailing on active markets. Otherwise, the Company and its subsidiaries estimate those values based on the best information available, including the use of models or other valuation techniques.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 3 - New IFRS and Interpretations of the IFRIC

Improvements and amendments to the IFRS and interpretations that have been published in the period are described below. On the closing date of these consolidated financial statements, these standards were not yet in effect and the Company has not applied them in advance:

Nota 3 - New IFRS and Interpretations of the IFRIC (continuación)

IFRS 9: Financial Instruments - Classification and Measurement

This standard introduces new requirements in the classification and measurement of financial assets and it can be applied in advance. All financial assets must be classified entirely according to the entity’s business model for financial asset management and the characteristics of the contractual cash flows of financial assets. Under this standard, financial assets are measured either at the amortized cost or at the fair value. Only financial assets classified as measured at the amortized cost must be tested for impairment. This standard enters into effect for periods beginning on or after January 1, 2015 and it can be adopted early.

The Company and its subsidiaries are still evaluating the impacts of this standard.

IFRS 10: Consolidated Financial Statements / IAS 27: Separate Financial Statements

This standard replaces the part of IAS 27 on Separate and Consolidated Financial Statements that deals with the accounting of consolidated financial statements. It also covers the matters contained in SIC 12 on Special-Purpose Entities. IFRS 10 sets out one single control model that applies to all entities (including special-purpose entities or structured entities). The changes introduced by IFRS 10 will require management to exercise significant professional judgment in determining which entity is controlled and must be consolidated, as compared to the requirements under IAS 27.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Standard Date of mandatory application for the Group

IFRS 9 Financial Instruments - Classification and Measurement January 1, 2015IFRS 10 Consolidated Financial Statements January 1, 2013IFRS 11 Joint Arrangements January 1, 2013IFRS 12 Disclosure of Interests in Other Entities January 1, 2013IFRS 13 Fair Value Measurement January 1, 2013IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine January 1, 2013

105

Nota 3 - New IFRS and Interpretations of the IFRIC (continuación)

IFRS 13: Fair Value Measurement

IFRS 13 establishes one single directive on how to measure fair value when fair value is required or permitted by IFRS. It does not change when an entity must use the fair value. The standard amended the definition of fair value to mean “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” (an exit price). It also adds some new disclosures.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IFRIC 20: Stripping Costs in the Production Phase of a Surface Mine

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine was issued in October 2011. This interpretation clarifies when and how to account for stripping costs in the production phase of a surface mine (the process of eliminating waste in a surface mine to gain access to the ore deposits) to cover the diversity of cases found in practice. IFRIC 20 clarifies that stripping costs in the production phase of a mine must be recognized as an asset, be measured initially and in following periods. The interpretation will take effect for annual periods beginning on or after January 1, 2013 and it can be adopted early.

The Company and its subsidiaries are still evaluating the impacts of this standard.

Nota 3 - New IFRS and Interpretations of the IFRIC (continuación)

IFRS 11: Joint Arrangements / IAS 28: Investments in Associates and Joint Ventures

IFRS 11 supersedes IAS 31 Interests in Joint Ventures and SIC 13 Jointly Controlled Entities - Non-Monetary Contributions by Venturers. IFRS 11 uses some of the terms used in IAS 31, but ascribes a different meaning to them. IAS 31 identified 3 forms of joint ventures, but IFRS 11 only talks of 2 (joint ventures and joint operations) when there is a joint control. Since IFRS 11 uses the IFRS 10 principle of control to identify control, the determination that there is a joint control may change. IFRS 11 also eliminated the option of accounting for jointly controlled entities (JCEs) using a proportional consolidation. Instead, JCEs that meet the definition of joint venture must be accounted for using the equity method. An entity must recognize the assets, liabilities, income and expenses, if any, for joint operations, which include jointly controlled assets, former jointly controlled operations and former jointly controlled entities. IFRS 11 amended IAS 28, on a limited basis, in regard to the matters relating to associates and joint ventures available for sale and changes in interests held in associates and joint ventures.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IFRS 12: Disclosures of Interests in Other Entities

IFRS 12 includes all disclosures that were previously in IAS 27 in relation to consolidation and all disclosures previously included in IAS 31 and IAS 28. These disclosures refer to the interest in the related parties of an entity, in joint arrangements, associates and structured entities. A certain number of new disclosures is also required.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

107

when it makes new retroactive inputs or reclassifications and this change has a material effect on the statement of financial situation. The initial balance of the statement of financial situation would be at the beginning of the previous period. However, despite the voluntary comparative information, the related notes are not required for the third balance sheet. Entities must apply these amendments retrospectively according to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors for years beginning on January 1, 2013. Early application is allowed and must be disclosed.

The Company and its subsidiaries evaluated the impacts of this standard and concluded that it will not significantly affect the financial statements.

Nota 3 - New IFRS and Interpretations of the IFRIC (continued)

IAS 16: Property, Plant and Equipment

“Annual Improvements 2009-2011 Cycle” amended paragraph 8, issued in May 2012. The amendment clarifies that the spare parts and auxiliary equipment meeting the definition of property, plant and equipment do not form part of inventories. Entities must apply this amendment retrospectively according to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors for years beginning on January 1, 2013. Early application is allowed and must be disclosed.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IAS 19: Employee Benefits

The IASB published amendments to IAS 19 Employee Benefits on June 16, 2011. They changed the accounting of defined benefit plans and severance benefit plans. The amendments required recognizing the changes in the liability for defined benefits and in the assets of the plan at the time those changes occur, which eliminates the broker focus and accelerates the recognition of the past costs of services. The changes in the defined benefits liability and the plan’s assets are disaggregated into three components: service costs, net interest on net defined benefit liabilities (assets) and remediation of net defined benefit liabilities (assets). Net interest is calculated using a rate of return on high quality corporate bonds. This could be lower than the rate actually used to calculate the expected return on the plan’s assets, which would reduce the fiscal year profit. The amendments will take effect for annual periods beginning on or after January 1, 2013 and they can be adopted early. A retroactive application is required, with certain exceptions.

Nota 3 - New IFRS and Interpretations of the IFRIC (continued)

IAS 1: Presentation of Financial Statements

“Annual Improvements 2009-2011 Cycle,” issued in May 2012, amended paragraphs 10, 38 and 41, eliminated paragraphs 39-40 and added paragraphs 38A-38D and 40A-40D, clarifying the difference between the additional comparative information furnished voluntarily and the minimum comparative information required. Generally, the minimum comparative period required is the previous period. An entity must include comparative information in the notes to the financial statements when the entity voluntarily furnishes comparative information beyond the minimum comparative period required. The additional comparative period does not contain an entire set of financial statements. Moreover, the initial balances of the statement of financial situation (known as the third balance sheet) must be presented in the following circumstances: when the entity changes its accounting policies;

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Date of Improvements and Amendments mandatory application for the Group IAS 1 Presentation of Financial Statements January 1, 2013IAS 16 Property, plant and equipment January 1, 2013IAS 19 Employee Benefits January 1, 2013IAS 27 Separate Financial Statements January 1, 2013 January 1, 2014IAS 28 Investments in Associates and Joint Ventures January 1, 2013IAS 32 Financial Instruments: Presentation January 1, 2013 January 1, 2014IAS 34 Intermediate Financial Reporting January 1, 2013IRFS 7 Financial Instruments: Disclosures January 1, 2013IRFS 10 Consolidated Financial Statements January 1, 2013 January 1, 2014IRFS 11 Joint Arrangements January 1, 2013IRFS 12 Disclosures of Interests in Other Entities January 1, 2013

109

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IAS 27: Separate Financial Statements

In May 2011, the IASB published a revised IAS 27 entitled Separate Financial Statements. IFRS 10 Consolidated Financial Statements established only one control model applicable to all entities and the requirements relating to the preparation of the consolidated financial statements.

The Company and its subsidiaries are still evaluating the impacts of this standard.

IAS 28: Investments in Associates and Joint Ventures

IAS 28 Investments in Associates and Joint Ventures, issued in May 2011, indicated the accounting of investments in associates and joint ventures and established the requirements for the application of the equity method when determining the investments in associates and joint ventures.

The Company and its subsidiaries evaluated the impacts of this standard and concluded that it will not significantly affect the financial statements.

IAS 32: Financial Statements - Presentation

“Annual Improvements 2009-2011 Cycle,” issued in May 2012, amended paragraphs 35, 37 and 39 and added paragraph 35A, clarifying that the income tax on dividends to the entity’s shareholders must be recorded according to IAS 12 Income Taxes. The amendment eliminated the existing income tax requirements in IAS 12 and required that entities apply the IAS 12 requirements to any income tax on dividends paid to the entity’s shareholders. Entities must apply these amendments retrospectively, according to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors for years beginning on January 1, 2013. Early application is allowed and must be disclosed.

The Company and its subsidiaries evaluated the impacts of this standard and concluded that it will not significantly affect the financial statements.

The amendments to IAS 32, issued in December 2011, are intended to clarify the differences in using netting and to reduce the level of diversity in practice. The standard applies effective January 1, 2014 and it can be adopted early.

The Company and its subsidiaries are still evaluating the impacts of this standard.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

IAS 34: Interim Financial Reporting

“Annual Improvements 2009-2011 Cycle,” issued in May 2012, amended paragraph 16A. The amendment clarifies the requirements in IAS 34 relating to the information on segments of total operating assets and liabilities for each of the operating segments in order to improve the consistency with requirements in IFRS 8 Operating Segments. The amended Paragraph 16A says that total assets and liabilities for a given operating segment shall only be reported when the quantities are measured by the senior management on a regular basis and there was a significant change in comparison to the information reported in the previous financial statements for this operating segment. Entities must apply this amendment retrospectively according to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors for years beginning on January 1, 2013. Early application is allowed and must be disclosed.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IFRS 7: Financial Instruments: Disclosures

In December 2011, IFRS 7 was issued stating that entities must disclose in financial information the effects or potential effects on the entity’s financial position of financial instrument set-off agreements. The standard is applicable starting January 1, 2013.

The Company and its subsidiaries evaluated the impacts of this standard and they concluded that it will not significantly affect the financial statements.

IFRS 10: Consolidated Financial Statements, IFRS 11: Joint Arrangements and IFRS 12: Disclosures of Interests in Other Entities

On June 28, 2012, the IASB published amendments to clarify the direction of the transition of IFRS 10 Consolidated Financial Statements. The amendments also indicate the additional transitory exceptions in the application of IFRS 10, IFRS 11 Joint Arrangements and IFRS 12 Disclosures of Interests in Other Entities, by limiting the requirement of furnishing comparative information only to the previous comparative period. Moreover, in disclosures of unconsolidated structured entities, the requirement of presenting comparative information between periods will be eliminated before applying the IFRS 12 for the first time. The effective date of the amendments is January 1, 2013 or periods thereafter, also in line with the effective date of IFRS 10, 11 and 12.

The Company and its subsidiaries are still evaluating the impacts of this standard.

111

Note 4 – Financial Reporting by Segment

Forus S.A. and its Subsidiaries disclose information by segment pursuant to IFRS 8 Operating Segments, which establishes standards to report on the operating segments and related disclosures for products, services and geographic areas. Operating segments are defined as components of a company for which there is separate financial information that is regularly used by the main decision-maker to decide how to allocate resources and to evaluate performance. The Company presents information by segment, which is used by management for internal decision-making.

The factors used to identify the operating segments reported are geography and the preparation of information provided monthly to the Company’s Board of Directors. Ordinary revenues in each segment correspond to income from the production and distribution of footwear under the Hush Puppies, Caterpillar, Rockford, Merrell, Nine West, Cushe, Brooks, Columbia, Azaleia, Pasqualini, Calpany, Norseg and other licenses. Revenues from the wholesale segment account for 21.91% of all revenues and the main customers in Chile are: Cencosud Retail S.A. (Paris), Falabella Retail S.A., and Ripley.

Nearly 78.09% of the Company’s revenues come from the retail segment. Sales are made in our own stores with their different formats.

Forus S.A. manages and measures performance of its operations by business segment. The operating segments reported internally are described below:

IFRS 10: Consolidated Financial Statements, IFRS 11: Joint Arrangements and IFRS 12: Disclosures of Interests in Other Entities

The amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosures of Interests in Other Entities and IAS 27 Separate Financial Statements come from the proposal on regulating investment entities, published in August 2011. The amendments define an investment entity and introduce an exception to consolidate certain subsidiaries belonging to investment entities. These amendments require that an investment entity measure these subsidiaries in its consolidated and separate financial statements at the fair value through profit or loss per IFRS 9 Financial Instruments. The amendments also incorporate new investment entity disclosure requirements in IFRS 12 and IAS 27. Entities must apply the amendments to years beginning on January 1, 2014. Early application is allowed.

The Company and its subsidiaries are still evaluating the impacts of this standard.

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

113

Note 4 - Financial Reporting by Segment (continued)

a.1) Revenues of Wholesale Business at December 31, 2012

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 4 - Financial Reporting by Segment (continued)

a.2) Revenues of the Retail Business at December 31, 2012

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$ Ordinary revenues 108,940,083 7,005,972 4,356,499 13,043,953 - 133,346,507

Interest income - - 44,052 1,091 - 45,143

Interest expense (929) (103,613) - (104,542)

Total Income 108,940,083 7,005,972 4,399,622 12,941,431 - 133,287,108

Cost of sales (less) (43,527,530) (2,823,988) (1,763,969) (5,753,878) - (53,869,365)

Depreciation and amortization (2,561,903) (109,314) (142,423) (450,524) - (3,264,164)

The sum of material items in other income 59 - 41,120 - - 41,179

Sum of material items in expenses (36,911,629) (2,909,249) (2,444,872) (4,520,539) - (46,786,289)

Subtotal of profits (losses) in the segment reported 25,939,080 1,163,421 89,478 2,216,490 - 29,408,469

Exchange differentials / units of adjustment 3,585 - - 30,686 - 34,271

Interest in associates and subsidiaries - - - - - -

Income tax (expense) income (5,170,570) (472,844) (12,673) (590,001) - (6,246,088)

Sum of other material non-monetary items - - - - - -

Total 20,772,095 690,577 76,805 1,657,175 - 23,196,652

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$ Ordinary revenues 36,377,650 2,681,457 1,913,714 1,329,256 (4,880,742) 37,421,335

Interest income - - - - - -

Total Income 36,377,650 2,681,457 1,913,714 1,329,256 (4,880,742) 37,421,335

Cost of sales (less) (20,295,716) (1,544,649) (1,571,337) (1,054,842) 4,880,742 (19,585,802)

Depreciation and amortization (909,329) (165,051) (25,536) - - (1,099,916)

Sum of material items in other income 813,239 59,903 159,683 - - 1,032,825

Sum of material items in expenses (5,881,998) (1,188,437) (335,619) (121,622) (168,873) (7,696,549)

Subtotal of profit (loss) of the segment reported 10,103,846 (156,777) 140,905 152,792 (168,873) 10,071,893

Exchange differentials / Units of adjustment (1,188,741) 97,166 10,052 - - (1,081,523)

Interest in associates and subsidiaries 2,830,755 - - - (2,658,829) 171,926

Income tax (expense) income (982,714) 35,954 (4,142) (42,418) - (993,320)

Sum of other material non-monetary items - - - - - -

Total 10,763,146 (23,657) 146,815 110,374 (2,827,702) 8,168,976

115

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 4 - Financial Reporting by Segment (continued)

a.3) Income from the Wholesale Business at December 31, 2011

ote 4 - Financial Reporting by Segment (continued)

a.4) Income from the Retail Business at December 31, 2011

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$ Ordinary revenues 93,110,716 5,665,318 3,326,051 10,708,462 - 112,810,547

Interest income - - - 1,164 - 1,164

Interest expense - - - - - -

Total Income 93,110,716 5,665,318 3,326,051 10,709,626 - 112,811,711

Cost of sales (less) (34,609,550) (2,327,165) (1,258,748) (4,993,293) - (43,188,756)

Depreciation and amortization (2,087,174) (235,154) (101,051) (378,960) - (2,802,339)

The sum of material items in other income - 21,750 3,951 7,214 - 32,915

Sum of material items in expenses (31,471,591) (2,538,890) (1,783,297) (3,589,982) - (39,383,760)

Subtotal of profits (losses) in the segment reported 24,942,401 585,859 186,906 1,754,605 - 27,469,771

Exchange differentials / units of adjustment 5,965 12,868 (7,135) (5,885) - 5,813

Interest in associates and subsidiaries - - - - - -

Income tax (expense) income (4,994,164) (249,312) (16,763) (374,459) - (5,634,698)

Sum of other material non-monetary items - - - - - -

Total 19,954,202 349,415 163,008 1,374,261 - 21,840,886

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$ Ordinary revenues 28,824,296 2,162,086 726,839 911,929 (3,084,348) 29,540,802

Interest income 6,189 6,679 - - - 12,868

Total Income 28,830,485 2,168,765 726,839 911,929 (3,084,348) 29,553,670

Cost of sales (less) (15,349,747) (1,177,523) (380,035) (642,365) 3,084,348 (14,465,322)

Depreciation and amortization (1,523,020) (120,008) (57,804) - - (1,700,832)

The sum of material items in other income 1,737,643 9,771 864 - - 1,748,278

Sum of material items in expenses (6,813,875) (745,907) (424,418) (66,494) 74 (8,050,620)

Subtotal of profits (losses) in the segment reported 6,881,486 135,098 (134,554) 203,070 74 7,085,174

Exchange differentials / units of adjustment 454,678 22,511 (1,559) - - 475,630

Interest in associates and subsidiaries 1,968,189 - - - (1,880,265) 87,924

Income tax (expense) income (995,943) (16,975) (3,663) (48,559) - (1,065,140)

Sum of other material non-monetary items - - - - - -

Total 8,308,410 140,634 (139,776) 154,511 (1,880,191) 6,583,588

117

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 4 - Financial Reporting by Segment (continued)

b.1) Assets and liabilities by geographic area at December 31, 2012

Note 4 - Financial Reporting by Segment (continued)

b.2) Assets and liabilities by geographic area at December 31, 2011

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$Current assets 92,150,496 4,474,565 2,840,476 9,199,379 (5,614,598) 103,050,318

Investments recorded using the equity method 15,400,474 - - - (13,583,723) 1,816,751

Deferred tax assets 1,806,614 250,857 26,300 - 2,083,771

Non-current assets 24,889,123 2,144,075 391,960 3,087,953 - 30,513,111

Total Assets 134,246,707 6,869,497 3,232,436 12,313,632 (19,198,321) 137,463,951

Current liabilities 19,629,589 3,123,235 1,293,111 4,658,662 (5,614,599) 23,089,998

Non-current liabilities 2,533,469 154,383 - 237,830 6,340 2,932,022

Total Liabilities 22,163,058 3,277,618 1,293,111 4,896,492 (5,608,259) 26,022,020

Description of Eliminations Chile Perú Colombia Uruguay Total K$ K$ K$ K$ K$

Intercompany receivables (4,819,696) - - - (4,819,696)

Current tax assets - - - (794,902) (794,902)

Current assets (4,819,696) - - (794,902) (5,614,598)

Investment in Related Entities (13,583,723) - - - (13,583,723)

Non-current assets (13,583,723) - - - (13,583,723)

Intercompany payables (1,874,724) (2,226,670) (467,796) (250,251) (4,819,441)

Allowances (1) (255) - - (256)

Current tax liabilities - - - (794,902) (794,902)

Current liabilities 1,874,725 (2,226,925) (467,796) (1,045,153) 5,614,599

Deferred tax liabilities 6,340 - - - 6,340

Current liabilities 6,340 - - - 6,340

Chile Perú Colombia Uruguay Eliminaciones Total K$ K$ K$ K$ K$ K$Current assets 82,885,040 3,939,577 2,252,063 8,244,141 (4,280,289) 93,040,532

Investments recorded using the equity method 13,102,978 - - - (11,985,997) 1,116,981

Deferred tax assets 1,894,121 239,236 - 12,906 - 2,146,263

Non-current assets 22,755,090 1,974,338 307,910 2,483,050 - 27,520,388

Total Assets 120,637,229 6,153,151 2,559,973 10,740,097 (16,266,286) 123,824,164

Current liabilities 25,147,907 2,987,272 869,691 4,559,064 (4,280,289) 29,283,645

Non-current liabilities 2,627,589 189,550 - 289,681 - 3,106,820

Total Liabilities 27,775,496 3,176,822 869,691 4,848,745 (4,280,289) 32,390,465

Description of Eliminations Chile Perú Colombia Uruguay Total K$ K$ K$ K$ K$

Intercompany receivables (4,280,289) - - - (4,280,289)

Current assets (4,280,289) - - - (4,280,289)

Investment in Related Entities (11,985,997) - - - (11,985,997)

Non-current assets (11,985,997) - - - (11,985,997)

Intercompany payables (1,185,369) (1,203,950) (367,367) (1,524,049) (4,280,735)

Allowances - 447 (1) - 446

Current liabilities (1,185,369) (1,203,503) (367,368) (1,524,049) (4,280,289)

119

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 5 – Cash and Cash Equivalent

Cash and cash equivalent was comprised as follows at December 31, 2012 and 2011:

a) Cash and banks

Cash corresponds to money kept on hand and in bank accounts and the amount recorded is the same as the fair value.

There are no restrictions associated with cash and cash equivalent.

b) Time deposits

Time deposits expiring originally in less than 3 months are recorded at the investment amount, together with interest accrued at the closing.

Note 6 – Other Current Financial Assets

Other current financial assets correspond to diverse investments in stocks, bonds, local and international mutual funds, mortgage bills, etc. They are managed by a group of specialized managers, namely:

- Celfin Capital- IM Trust- Banchile Inversiones

Each of these managers manages the different investments according to the parameters defined by the Company’s Executive Committee.

The parameters defined by management to limit the risks of valuation of these financial assets are:

- Zero exposure on highly volatile markets or in highly volatile instruments,- Investments mostly in fixed-income instruments; and- A desired return of no more than 4% on the funds.

When any investment is made in a foreign currency, the manager often manages the respective hedge in order to limit losses that the portfolio might suffer due to a variation in those instruments.

Finally, a policy has been established of reviewing the evolution of market risk and portfolio exposure weekly with each operator. As a consequence, instruments in which investments are made are adjusted and the risks of a volatile value are kept low.

Other financial assets are valued according to note 2k).i.

Income of K$1,349,446 was recorded for the periods ending December 31, 2012 and K$552,047 for the fiscal year ending December 31, 2011. This income is shown under “Financial Income” in the Consolidated Statement of Comprehensive Income.

Items 31.12.2012 31.12.2011 K$ K$ Cash and banks 5,433,651 7,919,947Time deposits 9,353,141 12,533,540Total 14,786,792 20,453,487

Types of deposits 31.12.2012 31.12.2011 K$ K$ In Chilean pesos 9,353,141 12,533,540Total 9,353,141 12,533,540

121

Note 6 - Other Current Financial Assets (continued)

Financial assets at their fair value, as described in Note 2 k), are broken down below:

a) Itemization of shares at December 31, 2012:

b) Itemization of bonds at December 31, 2012:

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 6 - Other Current Financial Assets (continued)

c) Itemization of mutual funds at December 31, 2012:

c.1) Local mutual funds

c.2) International mutual funds

Instrumentos 31.12.2012 31.12.2011 K$ K$ Stocks (a) 1,808 2,004Bonds (b) 91,394 3,513,207Local mutual funds (c) 25,028,959 14,888,771International mutual funds (c) 615,044 327Mortgage bills (d) 2,002 5,584

Total 25,739,207 18,409,893

Name of Nº of Percentage Unit Exchange Investment Taxpayer ID Company Shares Interest Price Exchange Price Currency % $ K$ 96524320-8 Chilectra S.A. 1,134 0.0000 1,270 1,440 CLP96542120-3 Emelari S.A. 186 0.0000 172 32 CLP96541920-9 Elecda S.A. 186 0.0000 420 78 CLP96541870-9 Eliqsa S.A. 186 0.0000 265 49 CLP88006900-4 Edelnor S.A. 186 0.0000 1,124 209 CLPTotal 1,808

Bond Purchase date Maturity Nominal Carrying value Rate Market value Date Value K$ % K$ Currency

BLAPO-B 02-03-2011 10-10-2017 2,000 12,783 41.37% 12,783 UFBAGUA-I 01-13-2010 12-01-2015 500 7,749 3.98% 7,750 UFBSOQU-G 01-13-2010 01-05-2014 60,000,000 62,166 6.72% 62,166 CLPFNBCI-110113 10-11-2012 01-11-2013 5,000,000 4,992 0.45% 4,992 CLPFNITA-100113 10-11-2012 01-10-2013 1,788,781 1,786 0.44% 1,786 CLPFNSEC-210113 10-11-2012 01-21-2013 1,923,047 1,917 0.45% 1,917 CLPTotal 91,394

Fund No. Of Shares Market Price K$ CurrencyFm Renta a Plazo 29,102.88 30,126 CLPFm Renta Chilena 55,305.76 90,025 CLPFm Renta Local 66,633.63 69,996 CLPFm Renta Nominal 6,902.96 10,045 CLPFm. Money Market 392.97 586 CLPFm. Money Market Dolar 323.40 292 USDFm. Money Market Dolar 5,025.11 4,512 USDFm. Corporativo 468,250.90 12,302,583 USDFm. Corporate Dollar 2,167.28 1,257,523 CLPIm Trust Liquidez B 246,093.91 329,163 USDIm Trust Renta 493,493.53 636,594 CLPFm.Scotiabank 1,683,767.57 2,523,720 CLPFm Scotiabank 703,318.02 1,054,170 CLPFm Scotiabank 668,161.67 1,001,476 CLPFm. Scotiabank 2,002,766.76 3,001,853 CLPFm. Scotiabank 1,171,474.10 1,755,867 CLPSecurity Dólar Money Market 1,780.18 960,428 USDTotal 25,028,959

Fund No. of Shares Currency Market Price Book Value $ K$ ISHARES EMU INDEX 8,981 USD 16,059 144,230ISHARES GERMANY INDEX 1,386 USD 11,855 16,431ISHARES JAPAN INDEX 2,621 USD 4,680 12,265ISHARES HONG KONG INDEX 938 USD 9,321 8,743ISHARES TR MCSI EMERGING MKTS 2,760 USD 21,286 58,750MARKET BEN VECTORS RUSSIA 686 USD 14,351 9,845SPDR S&P 500 3,724 USD 68,351 254,539SPDR INDEX SHS FDS S&P CHINA 383 USD 35,560 13,620SELECT SECTOR SPDR TR CONSUMER 1,624 USD 16,751 27,203VANGUARDDETF INT EQUITY INDEX FDS 2,709 USD 26,625 69,418Total 615,044

123

Note 6 - Other Current Financial Assets (continued)

d) Itemization of mortgage bills at December 31, 2012:

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 7 – Trade Receivables and Other Accounts Receivable, Current

a) Current trade receivables break down as follows:

At December 31, 2012:

At December 31, 2011:

Instrument Quantity Rate Expiration Book Value Currency % Date K$ EST0300102 590 3.85% 01-01-2014 2,002 UFTotal 2,002

31.12.2012 31.12.2011 Type Current Current K$ K$ Trade receivable (net) 7,533,439 6,169,222Notes receivable (net) 10,090,748 8,429,788Miscellaneous receivables 1,456,611 1,671,050Total 19,080,798 16,270,060

Wholesale Retail TotalItem Current Current Current K$ K$ K$ Trade receivables (net) 7,340,202 193,237 7,533,439Notes receivable (net) 815,485 9,275,263 10,090,748Sundry receivables 1,184,799 271,812 1,456,611Total 9,340,486 9,740,312 19,080,798

Wholesale Retail TotalItem Current Current Current K$ K$ K$ Trade receivables (net) 6,007,953 161,269 6,169,222Notes receivable (net) 946,111 7,483,677 8,429,788Sundry receivables 1,383,428 287,622 1,671,050Total 8,337,492 7,932,568 16,270,060

125

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 7 – Trade Receivables and Other Accounts Receivable, Current

a.1) At December 31, 2012 and 2011, the composition of trade receivables and other accounts receivable in the Wholesale segment was as follows:

The main customers in the wholesale business are: Ripley, Falabella Retail S.A., Paris S.A. and La Polar S.A., which owed K$5,397,829 at December 31, 2012 (K$4,891,184 at December 31, 2011).

Note 7 – Trade Receivables and Other Accounts Receivable, Current

b) At December 31, 2012 and 2011, the Company and its subsidiaries recorded provisions for trade receiva-bles and notes receivable totaling K$818,940 and K$1,367,969, respectively, each representing, in the same order, 4.12% and 7.76% of the total gross portfolio. They are itemized below:

At December 31, 2012

At December 31, 2011

The Company is constantly evaluating the credit quality of assets that are neither past-due or impaired.

12/31/2012 12/31/2011 K$ K$

Invoice receivables 7,340,202 6,007,953 Total Trade Receivables (net) 7,340,202 6,007,953 Checks in portfolio 533,716 531,534Checks in collection 187,881 110,374Bills in portfolio 76,492 6,195Bills in collection 17,396 298,008Total Notes Receivable (net) 815,485 946,111 Advances to suppliers and customs brokers 794,831 625,553Employee and other accounts receivable 389,968 757,875Total Sundry Receivables 1,184,799 1,383,428

Total Trade Receivables and OtherWholesale Receivables 9,340,486 8,337,492

12/31/2012 12/31/2011Provisions for Current Current K$ K$Trade receivables 458,902 918,102Notes receivable 360,038 449,867Sundry receivables -Total 818,940 1,367,969

Wholesale RetailProvisions for Current Current K$ K$ Trade receivables 918,102 -Notes receivable - 449,867Total 918,102 449,867

Wholesale RetailProvisions for Current Current K$ K$ Trade receivables 918,102 -Notes receivable - 449,867Total 918,102 449,867

127

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 7 – Trade Receivables and Other Accounts Receivable, Current (continued)

c) At December 31, 2012 and 2011, the age of trade receivables and notes receivables was:

At December 31, 2012, 84.24% of the total portfolio of the Company and its subsidiaries fell into the category of neither past-due nor impaired (84.6% as of December 2011).a

As described in note 2k) ii), the policy of the Company and its subsidiaries is to provision for all of the debt expiring beyond 360 days. However, an individual review is made periodically of other customers with payment issues, whether or not they are past-due, by analyzing publicly available financial information, the historic behavior of credits granted to those customers, which includes outstanding internal delinquency, external behavior and time as a customer. If the outcome of this analysis indicates little possibility of recover from the customer, then an uncollectible provision is made.

In this regard, in 2011 the Company and its subsidiaries recognized an increase in expenses because of uncollectibles impairment, occurring particularly with one customer in the department store segment (La Polar), based on financial information and the uncertainty of payment of its debt. The Company and its subsidiaries are permanently monitoring this customer in order to recognize any sign of impairment opportunely.

d) At December 31, 2012 and 2011, the maturity of assets not due or impaired was as follows:

Note 7 – Trade Receivables and Other Accounts Receivable, Current (continued)

e) The uncollectibles provision was as follows according to age: Al 31 de diciembre de 2012:

Vencidos pero no deteriorados

Año Total Ni vencidos 30 - 60 60 - 90 90 - 120 > 120

ni deteriorados < 30 días días días días días

K$ K$ K$ K$ K$ K$ K$

Total deuda 19.080.740 16.763.545 1.632.447 633.657 481.037 185.376 203.678

Monto provisionado (818.940) (309.626) - - (120.260) (185.376) (203.678)

Porcentaje 4,29% 1,85% - - 25,00% 100,00% 100,00%

Al 31 de diciembre de 2011:

Past-due but not impaired

Año Total Ni vencidos 30 - 60 60 - 90 90 - 120 > 120

ni deteriorados < 30 días días días días días

K$ K$ K$ K$ K$ K$ K$

Total debt 19,080,740 16,763,545 1,632,447 633,657 481,037 185,376 203,678

Provisions (818,940) (309,626) - - (120,260) (185,376) (203,678)

Percentage 4.29% 1.85% - - 25.00% 100.00% 100.00%

Neither Past-due but not impairedYear Total past-duenor < 30 days 30 - 60 days 60 - 90 days 90 - 120 days > 120 days K$ K$ K$ K$ K$ K$ K$2012 19,899,740 16,763,545 1,632,447 633,657 481,037 185,376 203,6782011 17,638,029 14,913,868 1,340,424 418,996 63,034 139,941 761,766a

Neither Days to maturityYear past-duenor < 30 days 30 - 60 days 60 - 90 days 90 - 120 days > 120 days K$ K$ K$ K$ K$ K$2012 16,763,545 8,532,740 4,383,971 1,930,530 1,509,014 407,2902011 14,913,868 7,700,100 4,107,436 2,233,306 618,892 254,134

129

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 8 – Investments accounted for by the Equity Method

The changes in interests in investments are shown below as of December 31, 2012 and 2011:

December 31, 2012

December 31, 2011

Note 8 - Investments accounted for by the Equity Method (continued)

Summary information is provided below on associates as of December 31, 2012 and 2011:At December 31, 2012

December 31, 2011

Taxpayer I.D. Company Country Functional Interest Balance at Addition Share in Dividends Disappropriation Impairment Translation Other Balance at

of Origin Currency 01.01.2012 Earnings (Loss) Received Value Differential increments 12/31/2012

/decrements

% K$ K$ K$ K$ K$ K$ K$ K$ K$

90.320.000-6 Elecmetal S.A. (2) (6) Chile Peso 0.45103 1,055,250 21,971 131,427 (221,317) - - 172,088 - 1,159,419

92.723.000-3 Quemchi S.A.(2) (5) Chile Peso 0.00000 23,890 - - - (23,890) - - - -

90.331.000-6 Cristalerías Chile S.A.(2) (6) Chile Peso 0.01198 37,841 - 5,217 (14,651) - - 81 - 28,488

Lifestyle Brands of Colombia Colombia Colombian Peso 0.49000 - 597,004 35,282 - - - (3,442) - 628,844

0-E S.A.S. (4)

Total 1,116,981 597,004 171,926 (235,968) (23,890) - 168,727 - 1,816,751

Taxpayer I.D. Company Country Functional Interest Balance at Addition Share in Dividends Disappropriation Impairment Translation Other Balance at

of Origin Currency 01.01.2012 Earnings (Loss) Received Value Differential increments 12/31/2012

/decrements

% K$ K$ K$ K$ K$ K$ K$ K$ K$

90.320.000-6 Elecmetal S.A. (2) Chile Peso 0.38327 988,114 - 118,843 (41,968) - - (9,739) - 1,055,250

92.723.000-3 Quemchi S.A.(2) (3) Chile Peso 0.08463 134,250 - (34,205) (4,181) - (55,270) (16,704) - 23,890

90.331.000-6 Cristalerías Chile S.A.(2) Chile Peso 0.01198 36,650 - 3,286 (1,897) - - (198) - 37,841

96.623.680-9 Inm.Parque del Sol S.A (1)(2) Chile Peso - 116,654 - - - (127,091) - 50 10,387 -

Total 1,275,668 - 87,924 (48,046) (127,091) (55,270) (26,591) 10,387 1,116,981

(1) The Company sold its share in Inmobiliaria Parque del Sol S.A. during the 2011 fiscal year.

(2) These investments were recorded at the equity value because the ultimate parent company, Costanera S.A.C.I., has appointed directors in them. It has therefore

been considered that in a final consolidation, there is a capacity to exercise a significant influence.

(3) On the date of issuance of these financial statements, Quemchi S.A. had not yet issued its audited results at the close of 2011, although there are indicators of a

significant drop in its income because of the valuation of its main asset, comprised of the investment in Compañia Sudamericana de Vapores. As a result, Forus S.A.

has accounted for an impairment of this investment based on the exchange value of Quemchi S.A.’s shares at the close of the year, which had decreased significantly.

(4) This is an investment through a joint venture made in 2012, as indicated in note 2(h).

(5) The Company sold its interest in Quemchi S.A. in 2012.

(6) These companies had not issued their financial statements by the date of issuance of these financial statements, so the figures correspond to September 30, 2012.

Taxpayer I.D. Company Country Current Non-Current Current Non-Current Revenues Ordinary Profit (Loss)

of Origin Assets Assets Liabilities Liabilities Expenses

K$ K$ K$ K$ K$ K$ K$

90.320.000-6 Elecmetal S.A. (1) Chile 359,668,562 392,492,588 102,619,889 194,623,058 341,006,544 298,674,457 32,320,757

90.331.000-6 Cristalerías Chile S.A. (1) Chile 243,609,659 263,609,186 67,426,000 142,299,882 164,191,216 147,186,680 43,561,375

Lifestyle Brands of

0-E Colombia S.A.S. Colombia 1,749,787 272,753 739,185 - 1,777,385 1,652,679 72,005

662,037,726 756,198,515 170,928,373 338,220,940 509,338,543 448,356,997 18,261,152

Taxpayer I.D. Company Country Current Non-Current Current Non-Current Revenues Ordinary Profit (Loss)

of Origin Assets Assets Liabilities Liabilities Expenses

K$ K$ K$ K$ K$ K$ K$

90.320.000-6 Elecmetal S.A. (3) Chile 379,027,629 383,629,326 115,322,457 197,148,885 332,267,578 291,360,168 24,997,815

92.723.000-3 Quemchi S.A.(3) Chile 56,522,783 144,091,329 1,026,824 2,608,800 1,924,773 739,334 (40,415,530)

90.331.000-6 Cristalerías Chile S.A.(3) Chile 281,721,204 328,450,151 81,739,027 147,145,189 195,463,622 171,870,316 22,750,408

717,271,616 856,170,806 198,088,308 346,902,874 529,655,373 463,969,818 7,332,693

(1) These companies had not issued their financial statements by the date of issuance of these financial statements, so the figures correspond to September 30, 2012.

(2) Quemchi S.A. had not issued its audited accounts at the close of 2011 on the date of issuance of these financial statements. However, there are signs of a

significant drop in its returns on investment based on the stock exchange value of its shares at the close of the year, which fell considerably.

131

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 9 – Intangible Assets other than Goodwill

The following items are classified in this line:

a) Trademarks

As of December 31, 2012

As of December 31, 2011

According to impairment estimates by management, no signs of impairment of trademarks were identified at December 31, 2012.

Note 9 - Intangible Assets other than Goodwill (continued)

b) Other intangibles

Other intangibles are valued as described in Note 2.i) iii) and they break down as follows:

At December 31, 2012Item Gross Cumulative Translation Net intangibles amortization difference intangibles K$ K$ K$ K$ Licenses 1,417,633 (911,865) (55,960) 449,808Software 2,020,242 (1,496,150) (7,239) 516,853Total 3,437,875 (2,408,015) (63,199) 966,661

At December 31, 2012Item Gross Cumulative Translation Net intangibles amortization difference intangibles K$ K$ K$ K$ Licenses 1,417,633 (764,935) (52,359) 600,339Software 1,692,179 (1,350,427) (1,101) 340,651Total 3,109,812 (2,115,362) (53,460) 940,990

Item 12/31/2012 12/31/2011 K$ K$

Trademarks 951,778 951,778Licenses 449,808 600,339Software 516,853 340,651Total 1,918,439 1,892,768

Trademark 1/1/2012 Additions Impairment 12/31/2012 K$ K$ K$ K$ Pasqualini 706,568 - - 706,568Norseg 172,500 - - 172,500Calpany 72,710 - - 72,710Total 951,778 - - 951,778

Trademark 1/1/2011 Additions Impairment 12/31/2011 K$ K$ K$ K$ Pasqualini 706,568 - - 706,568Norseg 172,500 - - 172,500Calpany 72,710 - - 72,710Total 951,778 - - 951,778

133

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Nota 9 - Activos Intangibles Distintos de la Plusvalía (continuación)

The following items are classified in this line:

At December 31, 2012

At December 31, 2011

- The amortization of these items in the fiscal year is shown in administrative expenses within the statement of comprehensive income by function.

- The column Other Increases (Decreases) includes translation differences of the items of subsidiaries abroad.

- The Company and its subsidiaries have calculated an impairment in the cash management software of our stores because new software was installed in August 2011. Accounting software has also been impaired since the platform version will be changed at the start of 2012, which involves an investment in new technology.- At December 31, 2012 and 2011, the Company and its subsidiaries did not record any impairment losses or reversals.

Asset Starting Additions Amortization Impairment Other Movement Ending balance Balance 1/1/2012 increases (decreases) Subtotal 12/31/2012 K$ K$ K$ K$ K$ K$ K$ Trademarks 951,778 - - - - - 951,778Licenses 600,339 - (146,930) - (3,601) (150,531) 449,808Software 340,651 328,064 (145,723) - (6,139) 176,202 516,853 1,892,768 328,064 (292,653) - (9,740) 25,671 1,918,439

Asset Starting Additions Amortization Impairment Other Movement Ending balance Balance 1/1/2011 increases (decreases) Subtotal 12/31/2011 K$ K$ K$ K$ K$ K$ K$ Trademarks 951,778 - - - - - 951,778Licenses 607,167 - (74,408) (44,621) 112,201 (6,828) 600,339Software 285,354 246,190 (174,994) (22,600) 6,701 55,297 340,651 1,844,299 246,190 (249,402) (67,221) 118,902 48,469 1,892,768

Note 10 - Goodwill

Goodwill is calculated as described in Note 2 i) i) and was generated mainly in the acquisition of all operations of Azacalzados S.A. from Azaleia Chile S.A. in January 2007.

The movement in goodwill was as follows as of December 31, 2012 and 2011:

At December 31, 2012

At December 31, 2011

At December 31, 2012, the Company and its subsidiaries recognized impairment losses of K$31,854 in the goodwill of Almacenes Pucón S.A., after management conducted impairment tests based on estimations of cash flows and future projections on growth and sales. These impairment losses are shown in administrative expenses within the statement of comprehensive income.

Taxpayer ID Company 1/1/2012 Impairment Other 12/31/2012 K$ K$ K$ 2 Foreign Azacalzados S.A. 1,034,939 - - 1,034,939Foreign Uruforus S.A. 28,809 - - 28,809Foreign Almacenes Pucón S.A. 248,389 (31,854) (13,139) 203,396Total 1,312,137 (31,854) (13,139) 1,267,144

Taxpayer ID Company 1/1/2012 Impairment Other 12/31/2012 K$ K$ K$ 1 Foreign Azacalzados S.A. 1,034,939 - - 1,034,939Foreign Uruforus S.A. 28,809 - - 28,809Foreign Almacenes Pucón S.A. 249,784 (36,627) 35,232 248,389Total 1,313,532 (36,627) 35,232 1,312,137

135

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 11 – Property, Plant and Equipment

The items comprising this account are broken down below, together with the corresponding cumulative depreciation:

Note 11 – Property, Plant and Equipment (continued)

The movements of the items comprising this account are shown below as of December 31, 2012 and 2011:

At December 31, 2012 and 2011, the Company and its subsidiaries recorded an impairment of K$98,26, corresponding mainly to IT equipment as a result of updating of ERP Oracle and some assets of the parent company that were remodeled. These impairment losses are shown under “administrative expenses” in the statement of comprehensive income.

31.12.2012 31.12.2011

Item Gross property, Cumulutative Net. property Gross property, Cumulutative Net. property

plant and depreciation plant and plant and depreciation plant and

equipment equipament equipment equipament

K$ K$ K$ K$ K$ K$

Construction in progress 37,502 - 37,502 - - -

Lands 4,538,113 - 4,538,113 3,752,044 -3,752,044

Buildings 8,951,641 (1,301,201) 7,650,440 9,274,119 (1,213,651) 8,060,468

Plant and equipment 2,871,389 (2,871,389) - 2,855,531 (2,855,531) -

Information technology 1,981,702 (1,490,390) 491,312 2,127,960 (1,648,396) 479,564

Fixed facilities and accessories 1,546,626 (898,642) 647,984 1,612,999 (972,916) 640,083

Motor vehicles 69,465 (39,122) 30,343 56,957 (24,724) 32,233

Improvements in leased property 23,858,242 (12,276,249) 11,581,993 19,232,460 (10,178,482) 9,053,978

Other 2,272,531 (1,871,092) 401,439 2,466,763 (1,731,404) 735,359

Total 46,127,211 (20,748,085) 25,379,126 41,378,833 (18,625,104) 22,753,729

Movements in 2012 Construction Land Buildings Plant and IT Fixed Motor Improvement Other

in progress equipment facilities and vehicles s to leased

accessories property

K$ K$ K$ K$ K$ K$ K$ K$ K$

Balance at 1/1/2012 - 3,752,044 8,060,468 - 479,564 640,083 32,233 9,053,978 735,359

Additions 553,377 796,908 46,826 297,317 282,364 13,603 5,857,694 145,070

Retirements - - - - (7,288) (15,919) - (213,674) (101,424)

Depreciation expenses - - (325,435) (25,989) (253,824) (335,898) (14,388) (2,677,86) (307,914)

Impairment loss - - - (15,976) (27,804) - - - (54,481)

Other increases (decreases) due

to foreign exchange - (10.839) (1.303) - 289 (8.600) (1.105) (92.028) (7.361)

Other increases

decreases (515,875) - (130,116) 41,965 3,058 85,954 - (346,112) (7,810)

Total changes 37,502 786,069 (410,028) - 11,748 7,901 (1,890) 2,528,015 (333,920)

Balances at 12/31/2012 37,502 4,538,113 7,650,440 - 491,312 647,984 30,343 11,581,993 401,439

137

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 11 – Property, Plant and Equipment (continued)

At the close of this fiscal year, the Company recognized impairment losses for K$161,245, corresponding to stores being remodeled or relocated during 2012 that require fresh investment. These impairment losses are shown under “administrative expenses” in the statement of comprehensive income.

Note 12 – Income Taxes

a) Income tax provision

The Parent Company and its subsidiaries have set up an income tax provision as described below:

The presentation in the statement of financial position has been made taking into account whether taxes are recoverable or payable in the jurisdiction of each company, as shown below:

b.1) Recoverable taxes

Movements in 2011 Construction Land Buildings Plant and IT Fixed Motor Improvement Other

in progress equipment facilities and vehicles s to leased

accessories property

K$ K$ K$ K$ K$ K$ K$ K$ K$

Balance at 1/1/2011 4,664,556 3,687,585 1,748,446 50,834 391,149 633,804 20,526 7,005,234 995,201

Additions 2,155,379 - - - 310,840 304,307 19,202 4,768,143 324,374

Retirements - - - - (9,166) (17,717) - (51,963) (6,690)

Depreciation expenses - - (265,065) (6,631) (235,103) (291,732) (9,747) (2,929,483) (286,980)

Impairment loss - - - - (563) - - (145,294) (15,951)

Other increases (decreases) due

to foreign exchange (16,749) 64,459 - 5,376 12,859 2,252 516,572 (342,787)

Other increases (decreases) (6,803,186) - 6,577,087 (44,203) 17,031 (1,438) - (109,231) 68,192

Total changes (4,664,556) 64,459 6,312,022 (50,834) 88,415 6,279 11,707 2,048,744 (259,842)

Balances at 12/31/2011 - 3,752,044 8,060,468 - 479,564 640,083 32,233 9,053,978 735,359

12/31/2012 12/31/2011 K$ K$ Parent Company 6,112,291 6,887,063Subsidiaries 1,289,682 990,840Total 7,401,973 7,877,903

12/31/2012 12/31/2011 K$ K$ Parent Company tax provision (6,112,291) -Subsidiary tax provision (794,902) (591,918) Less: Provisional monthly payments (P.P.M.) 8,556,183 875,709Training expenses 117,861 -Property, plant and equipment credit 7,789 -Other credits (debits) 43,350 (3,845)Recoverable taxes 1,817,990 279,946

139

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 12 – Income Taxes (continued)

b.2) Taxes payable

c) Taxable profits fund

The Company presents a fund for taxable profits distributable as of December 31, 2012 and December 31, 2011, as follows:

Nota 12 - Impuestos a las Ganancias (continuación)

d) Deferred taxes

The balances of deferred taxes are provided below: 12/31/2012 12/31/2011 K$ K$

Parent Company tax provision - (6,887,063)Subsidiary tax provision (494,780) (398,922) Less: Provisional monthly payments (P.P.M.) 348,586 3,926,725Training expenses - 107,954Property, plant and equipment credit - 11,349Other credits 28,660 66,992Taxes payable (117,534) (3,172,965)

12/31/2012 12/31/2011 K$ K$

20.0% Credit 28,352,347 27,598,94118.5% Credit 23,282,815 17.0% Credit 23,807,086 34,967,72016.5% Credit 4,702 -16.0% Credit 9,047 -15.0% Credit 74,803 -10.0% Credit 9,104 -No Credit 359,688 40,140Total 75,899,592 62,606,801

12/31/2012 12/31/2011

Item Deferred asset Deferred liability Deferred asset Deferred liabilityTemporary differences K$ K$ K$ K$ Vacations 259,581 - 219,176 -Severance provision 32,973 - 22,966 -Uncollectibles provision 159,362 - 253,458 -Obsolescence provision 207,967 - 167,236 -Share valuation 73,918 - 108,210 -Profit-share 895 - 376 -Property, plant and equipment 185,365 - 148,022 3,396Leasing debt 399,179 - 344,593 -Prepaid expenses 40,175 - 28,767 -Financial impairment of PPE 210,206 - 336,980 -Overhead and other provisions 142,906 - 139,659 -Difference in land appraisal - - - 141,817Leased assets - 491,275 - 408,563Trademark rights - 154,383 - 310,726Difference in inventory value 5,657 71,239 101,070 -Difference in software valuation - 48,666 - -Carryover tax loss of subsidiary 365,587 - 275,750 -Total 2,083,771 765,563 2,146,263 864,502

141

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 12 – Income Taxes (continued)

e) Income tax expense breaks down as follows:

f) Reconciliation of income tax

The reconciliation of income tax expense based on financial income before taxes was as follows at December 31, 2012 and 2011:

Note 13 – Financial derivatives

As of December 31, 2012 and 2011, the Parent Company had signed exchange rate hedges to hedge its exposure to variations in the dollar exchange rate (US$) originating in its imports of merchandise. These contracts are set out below and were accounted for as described in Note 2 k) v):

At December 31, 2012

12/31/2012 12/31/2011 K$ K$ Income tax provision 7,276,792 7,733,765Deferred taxes (37,384) (1,033,927)Total 7,239,408 6,699,838

2012 2011 Amount Tax rate Amount Tax rate K$ % K$ %Chile:

Income before taxes at legal rate in Chile 7,519,914 20.00% 6,899,748 20.00%Revaluation of shareholders’ equity (400,022) (1.06%) (631,977) (1.83%)Net profit on investment in associates (567,370) (1.51%) 390,761 1.13Other permanent differences (340,139) (0.91%) (418,975) (1.21%)Other increases (decreases) 21,557 0.06% (165,290 (0.48%)Total adjustment to legal tax rate (1,285,974) (3.42%) (825,482) (2.39%) Foreign Subsidiaries 1,005,468 2.67% 625,572 1.81% Total expense for current taxes 7,239,408 19.25% 6,699,838 19.42%Effective rate 19.25% 19.42%

Descripción de los contratos

Type of Type of Contract Term Specific Purchase / Sale temor hedged Realized

Derivative Contract Amount Item Position transaction Name Amount (debit) / credit

US$ K$ K$

FR CI 2,000,000 01-30-2013 Dollar P Bank debt 1,008,400 (46,330)

FR CI 2,000,000 02-05-2013 Dollar P Bank debt 1,009,100 (45,318)

FR CI 2,000,000 02-12-2013 Dollar P Bank debt 1,005,400 (41,931)

FR CI 2,000,000 02-15-2013 Dollar P Bank debt 1,000,800 (35,855)

FR CI 2,000,000 02-28-2013 Dollar P Bank debt 997,200 (33,958)

FR CI 2,000,000 02-19-2013 Dollar P Bank debt 991,760 (27,009)

FR CI 2,000,000 02-19-2013 Dollar P Bank debt 989,500 (24,134)

FR CI 2,000,000 02-26-2013 Dollar P Bank debt 987,900 (22,831)

FR CI 2,000,000 02-22-2013 Dollar P Bank debt 984,200 (18,143)

FR CI 2,000,000 02-14-2013 Dollar P Bank debt 981,000 (14,704)

FR CI 2,000,000 02-25-2013 Dollar P Bank debt 981,900 (14,229)

FR CI 2,000,000 02-08-2013 Dollar P Bank debt 976,400 (11,749)

FR CI 2,000,000 02-20-2013 Dollar P Bank debt 975,840 (10,245)

FR CI 2,000,000 02-21-2013 Dollar P Bank debt 979,200 (14,000)

FR CI 2,000,000 03-05-2013 Dollar P Bank debt 977,900 (12,376)

FR CI 2,000,000 02-27-2013 Dollar P Bank debt 971,800 (6,241)

FR CI 2,000,000 02-13-2013 Dollar P Bank debt 970,780 (5,097)

FR CI 2,000,000 03-01-2013 Dollar P Bank debt 969,840 (1,840)

FR CI 2,000,000 03-07-2013 Dollar P Bank debt 968,700 (626)

FR CI 2,000,000 03-04-2013 Dollar P Bank debt 959,200 5,686

143

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 13 – Financial derivatives (continued

At December 31, 2011

Note 14 – Related Party Accounts Receivable and Payable

The balances receivable and payable with related parties are summarized below as of December 31, 2012 and 2011:

a) Notes and accounts receivable

All documents and accounts receivable are controlled in pesos and correspond to transactions with Chilean companies.

b) Compensation and benefits received by key personnel of the Company

The Company considers 38 executives to be key and they are distributed as follows:

The information refers to the number of positions in the parent company and its subsidiaries.

Description of contracts

Purchase/ Impact on income

Type of Type of Contract Term Specific Sale Item or transaction hedged Realized

Derivative Contract Amount Item Position Name Amount (debit) /credit

US$ K$ K$

FR CI 1,000,000 02-28-2012 Dollar P Bank debt 519,200 (13,142)

FR CI 2,000,000 02-15-2012 Dollar P Bank debt 1,038,400 (26,238)

FR CI 1,000,000 02-28-2012 Dollar P Bank debt 519,200 (13,010)

FR CI 2,000,000 02-15-2012 Dollar P Bank debt 1,038,400 (38,362)

FR CI 2,000,000 02-15-2012 Dollar P Bank debt 1,038,400 (38,573)

FR CI 2,000,000 01-30-2012 Dollar P Bank debt 1,038,400 (39,567)

FR CI 1,000,000 02-28-2012 Dollar P Bank debt 519,200 (19,951)

Current

Taxpayer ID Company Country Currency Nature of

the relationship 31.12.2012 31.12.2011

K$ K$

95.819.000-K Costanera S.A.C.I. Chile Pesos Ultimate Parent 843

76.724.880-6 Inversiones Accionarias S.A. Chile Pesos Common Directors 2,820

0-E Lifestyle Brands of Colombia Colombian Joint Control 690,007 -

Colombia S.A.S. Pesos

Total 690,007 3,663

Position No. of executives 12/31/2012 12/31/2011 Directors in the Parent Company 7 7 Directors in subsidiaries 19 19 Senior management 12 12 Total 38 38

145

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 14 - Related Party Accounts Receivable and Payable (continued)

b) Compensation and benefits received by key personnel of the Company (continued)

Below is the compensation received by key employees at December 31, 2012 and 2011:

This compensation is comprised of salary and bonuses. There are no expenses on post-employment benefits, severance or stock-based payments.

c) Compensations and benefits received by the Company’s Board of Directors

i) Compensation of the Boards of Directors of subsidiaries The directors in subsidiaries receive no compensation.

ii) Expenses of the Board of Directors

The Board of Directors of Forus S.A. did not incur any expenses on consulting of any type during the 2012 and 2011 fiscal years.

iii) Directors Committee

The Directors Committee holds regular meetings to discuss the matters stipulated in article 50-bis of Law 18,046. This Committee is responsible for:

• examining the opinions of external auditors, balance sheets and other financial statements• proposing the external auditors and risk rating agencies• examining the information on related party transactions; and • analyzing the Senior Executive Compensation Plans and Compensation Systems.

For the 2012 fiscal year, the Regular General Shareholders Meeting held April 18, 2012 set the compensation of the Committee at one-third of the compensation that a director in the Company receives, namely 1.0% of net profits in the fiscal year, divided among the directors according to their time in office.

Note 14 - Related Party Accounts Receivable and Payable (continued)

c) Compensation and benefits received by the Company’s Board of Directors (continued)

An expense budget was also set for the equivalent to the sum of the annual compensation of Committee Members.

iv) Manager and senior executive incentive plan

Forus S.A. has implanted an annual bonus plan for its managers and senior executives that is structured on meeting general goals according to the results of the Company and the individual approval of their contribution to those results. The amounts of bonuses are defined as a certain number of net monthly salaries and are approved by the Board.

For subsidiaries abroad, bonuses are paid only to Country Managers for whom there is an annual bonus plan that is structured as indicated above, except that only the results of the respective subsidiary are considered.

v) Severance indemnities

No severance indemnities were paid to executives for the period ending December 31, 2012 and 2011.

12/31/2012 12/31/2011 K$ K$ Board of directors 407,935 338,432Executives 1,563,516 1,384,656Total 1,971,451 1,723,088

147

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Company Taxpayer ID Nature of Country Currency Description of 12/31/2012 12/31/2011

relationship transaction Amount Efecto en Monto Impact on Amount Impact on

K$ income K$ income

Inversiones Costanera Ltda. 86475500-3 Parent Chile Pesos Expense of consulting contract 163,324 (163,324) 156,940 (156,940)

Inversiones Costanera Ltda. 86475500-3 Parent Chile Pesos Payment of consulting contract 163,324 - 156,940 -

Inversiones Costanera Ltda. 86475500-3 Parent Chile Pesos Distribution of dividends 7,915,595 - 12,072,898 -

Costanera S.A.C.I. 95819000-K Ultimate parent Chile Pesos Lease of Santa María office 401 21,682 (21,682) 20,963 (20,963)

Costanera S.A.C.I. 95819000-K Ultimate parent Chile Pesos Billing of telephone and Internet service 22,525 - 21,254 -

Inmobiliaria Costanera S.A. 96684830-8 Common directors Chile Pesos Lease of Santa María office 201 20,327 (20,327) 21,268 (21,268)

Inmobiliaria Costanera S.A. 96684830-8 Common directors Chile Pesos Payment of lease for Santa Maria offices 20,327 - 21,268 -

Asesorías e Inversiones Sta. Francisca Ltda 78627460-5 Common directors Chile Pesos Distribution of dividends 216,376 - 330,018 -

Inversiones Accionarias S.A. 76724880-6 Common directors Chile Pesos Payment of lease for Huechuraba warehouses 67,825 (67,825) 130,289 -

Inversiones Accionarias S.A. 76724880-6 Common directors Chile Pesos Expense of lease for Huechuraba warehouses 67,825 - 130,289 (130,289)

Inversiones Accionarias S.A. 76724880-6 Common directors Chile Pesos Collection for Huechuraba security and electricity 8,155 2,820 -

Inversiones Accionarias S.A. 76724880-6 Common directors Chile Pesos Receipt of funding 5,334 (5,334) 1,146 -

Inversiones Accionarias S.A. 76724880-6 Common directors Chile Pesos Sale of interest in Parque del Sol - - 1,146 -

Marbella Country Club 75072700-K Common directors Chile Pesos Purchase of advertising services 1,500 (1,500) - -

Marbella Country Club 75072700-K Common directors Chile Pesos Payment of advertising services 1,500 - - -

Olivos del Sur S.A. 99573760-4 Common directors Chile Pesos Purchase of products 166 (166) 921 (921)

Olivos del Sur S.A. 99573760-4 Common directors Chile Pesos Payment of products 166 - 921 -

Soc. Anónima Viña Santa Rita 86547900-k Common directors Chile Pesos Purchase of wine and lodging-Commercial relations 906 (906) - -

Soc. Anónima Viña Santa Rita 86547900-k Common directors Chile Pesos Payment of wine and lodging-Commercial relations 906 - - -

Cía. SudAmericana Vapores S.A. 90160000-7 Common directors Chile Pesos Purchase of maritime freight 1,064,437 (1,064,437) 1,072,027 (1,072,027)

Cía. SudAmericana Vapores S.A. 90160000-7 Common directors Chile Pesos Payment of current account 971,567 - 648,052 -

Sud Americana Agencias 92048000-4 Common directors Chile Pesos Agency and maritime and air cargo service 33,209 (33,209) 40,794 (40,794)

Aéreas y Marítimas S.A.

Sud Americana Agencias 92048000-4 Common directors Chile Pesos Payment of current account 37,134 - 36,309 -

Aéreas y Marítimas S.A.

Norgistics Chile S.A. 76028758-K Common directors Chile Pesos Purchase of ground freight 324,445 (324,445) 281,419 (281,419)

Norgistics Chile S.A. 76028758-K Common directors Chile Pesos Payment of current account 326,788 - 278,882 -

Empresa Constr. Tecsa S.A. 91300000-5 Common directors Chile Pesos Purchase of Maipu DC construction - - 1,007,736 -

Empresa Constr. Tecsa S.A. 91300000-5 Common directors Chile Pesos Purchase of expenses and services - - 660 -

Empresa Constr. Tecsa S.A. 91300000-5 Common directors Chile Pesos Payment of current account - - 1,008,396 -

Note 14 - Related Party Accounts Receivable and Payable (continued)

d) Transactions

Below are the main transactions with related parties that took place during the 2012 and 2011 fiscal years:

Company Taxpayer ID Nature of Country Currency Description of 12/31/2012 12/31/2011

relationship transaction Amount Impact on Amount Impact on

K$ income K$ income

Empresas La Polar S.A. 96874030-K Common Directors Chile Pesos Sale of merchandise - - 3,243,520 3,243,520

Empresas La Polar S.A. 96874030-K Common Directors Chile Pesos Receipt of funds - - 3,785,619 -

Empresas La Polar .S.A. 96874030-K Common Directors Chile Pesos Purchase of expenses and services - - 5,963 (5,963)

Empresas La Polar S.A. 96874030-K Common Directors Chile Pesos Payment of current account - - 5,963 -

Unión Soc. de Empres. Cristianos 70053000-0 Common Directors Chile Pesos Purchase of services – social contribution 2,698 (2,698) 4,729 -

Unión Soc. de Empres. Cristianos 70053000-0 Common Directors Chile Pesos Payment of services – social contribution 2,698 - 4,729 -

Alfonso Swett Saavedra 4431932-2 Director Chile Pesos Share 71,061 - 48,484 -

Alfonso Swett Saavedra 4431932-2 Director Chile Pesos Distribution of dividends 19,036 - 29,033 -

Alfonso Swett Saavedra 4431932-2 Director Chile Pesos Compensation 45,059 (45,059) 42,844 (42,844)

John Stevenson 0-E Director Chile Pesos Fees 45,879 (45,879) 44,601 (44,601)

John Stevenson 0-E Director Chile Pesos Share 35,531 - 23,954 -

Pedro Jullian Sánchez 3958417-4 Director Chile Pesos Directors committee - - 2,694 (2,694)

Pedro Jullian Sánchez 3958417-4 Director Chile Pesos Share - - 8,081 -

Ricardo Swett Saavedra 4336224-0 Director Chile Pesos Fees 29,601 (29,601) 28,354 (28,354)

Ricardo Swett Saavedra 4336224-0 Director Chile Pesos Share 35,531 - 24,242 -

Eduardo Aninat Ureta 5892294-3 Director Chile Pesos Directors committee 11,844 - 8,081 (8,081)

Eduardo Aninat Ureta 5892294-3 Director Chile Pesos Share 35,531 - 24,242 -

Alfonso Swett Opazo 7016281-4 Director Chile Pesos Directors committee 11,844 - 8,081 (8,081)

Alfonso Swett Opazo 7016281-4 Director Chile Pesos Share 35,531 - 24,242 -

Heriberto Urzúa Sánchez 6666825-8 Director Chile Pesos Directors committee 11,8.44 - 5,387 (5,387)

Heriberto Urzúa Sánchez 6666825-8 Director Chile Pesos Share 35,531 - 24,242 -

Francisco Gutiérrez 7031728-1 Director Chile Pesos Share 35,531 - 16,161 -

Trends S.A. 96642000-6 Shareholder Chile Pesos Distribution of dividends 352,914 - 538,266 -

Comercial Spac Ltda. 79924450-0 Shareholder Chile Pesos Distribution of dividends 37,882 - 55,955 -

Sebastián Swett Opazo 7016199-0 Manager Chile Pesos Distribution of dividends 102 - 155 -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Re-billing of expenses and services 414,729 - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Initial investment 597,004 - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Debt adjustment and interest (453) - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Purchase of merchandise 359,658 - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Transfer of RFK and Merrell stores income 59,255 - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Receipt of funding (5,055) - -

Lifestyle Brands of Colombia S.A.S. 0-E Joint control Colombia Pesos Sale of merchandise 581,189 581,189 - -

Note 14 - Related Party Accounts Receivable and Payable (continued)

d) Transactions (continued)

149

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 14 - Related Party Accounts Receivable and Payable (continued)

e) Terms and conditions of related party transactions

- Transactions with related parties are performed under normal business terms.

- At December 31, 2012 and 2011, the Company and its subsidiaries had not accounted for any impairments in accounts receivable from related parties. This evaluation is made at the close of each fiscal year by reviewing the financial position of related parties and of the market where they do business. At December 31, 2012 and 2011, the Company and its subsidiaries had not delivered or received any guarantees from related parties.

Note 15 - Inventories

Net inventories are appraised as described in Note 2.l) and are shown below:

Inventory movements were:

Note 15 - Inventories (continued)

Other increases (decreases) in inventory movement were:

Inventory provision movements were:

(*) Increases are debits to income to account for differences in end stocks, product obsolescence and losses in production processes.

(**) Utilization mainly involves absorbing stock differentials and merchandise obsolescence.

(***) Other increases (decreases) shows the translation differences for balances of foreign subsidiaries when they convert their financial statements to the currency of presentation, as indicated in IAS 21.

Items 12/31/2012 12/31/2012 K$ K$ Raw materials 588,016 551,872Merchandise in transit 12,506,332 11,943,907Products in process 58,377 75,190Finished products 26,888,844 24,075,293Other inventories 464,561 73,249Obsolescence provision (1,149,807) (979,736)Total 39,356,323 35,739,775

Inventory Movements 12/31/2012 12/31/2012 K$ K$ Starting balance at January 1 35,739,775 26,034,163Purchases 77,998,550 65,375,423Sales (73,455,167) (57,654,078)Other increases (decreases) (926,835) 1,984,267Ending Balance 39,356,323 35,739,775

Containers 30,848 107,101Translation Differences (236,060) 1,268,171Production Consumption (3,979,398) (1,189,248)Sale of subsidiaries (unrealized profit) 4,880,742 3,084,348Write-offs (1,523,915) (1,000,168)Inventory and other differences (99,052) (285,937)Ending balance (926,835) 1,984,267

Starting balance at January 1 979,736 716,195Increase (decrease) in Existing provisions (*) 876,747 1,421,466Provisions used (**) (363,039) (1,127,488)Other increases (decreases) (***) (343,637) (30,437)Ending balance 1,149,807 979,736

12/31/2012 12/31/2012 K$ K$

12/31/2012 12/31/2012 K$ K$

Other increases (decreases)

Provision Movements

151

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 15 - Inventories (continued)

The balance of the obsolescence provision is distributed as follows for each inventory account:

Note 16 - Equity

The variations in equity during the 2012 and 2011 periods are described in the Statement of Changes in Net Equity.The paid-in capital of the Company was comprised as follows at December 31, 2012:

a) Number of shares

b) Capital

There were no variations in the number of issued shares at December 31, 2012 and 2011.

Note 16 - Equity (continued)

c) Shareholder distribution

A distribution of shareholders in the parent company is shown below as of the close of the consolidated financial statements, as mandated in Circular No. 792 of the Securities and Insurance Commission:

The company was owned as follows at December 31, 2012 and 2011:

12/31/2012 12/31/2011 K$ K$

Raw materials 36,833 12,937Products in process 45,887 27,725Finished products 1,067,087 939,074Ending balance 1,149,807 979,736

Series No. of shares No. of shares paid No. of voting shares subscribed

Unique (*) 258,469,000 258,469,000 258,469,000Total 258,469,000 258,469,000 258,469,000

Series Subscribed Paid-in capital K$ capital K$ Unique 24,242,787 24,242,787Total 24,242,787 24,242,787

Type of shareholder Percentage Number of interest (%) shareholders 12/31/2012 12/31/2012

- 10% or more interest 66.05 1- Less than 10% interest with an investment greater than or equal to 33.90 100 a UF 200 - Less than 10% interest with an investment below UF 200 0.05 52 Total 100.00 153 Controller of the Company 66.05 1

Total percentage Number of Interest Shares Inversiones Costanera Limitada 66.0461 66.0461 170,708,800 170,708,800Fondo de Inversión Larraín Vial Beagle 3.6557 4.4674 9,448,744 11,546,811Compass Small Cap Chile Investment Fund 3.2356 3.5497 8,362,995 9,174,947Trends S.A. 2.9446 2.9446 7,610,997 7,610,997Moneda S.A. AFI for Pionero Fondo de Inversión - 2.1747 - 5,621,000Banco Santander HSBC Global Custody Clients S/C 2.8094 1.2464 7,261,535 3,221,535Banco de Chile for non-resident third parties 2.1877 - 5,654,582 -Asesorías e Inversiones Santa Francisca Limitada 1.8054 1.8054 4,666,400 4,666,400Celfin Capital S.A.C de B 1.7893 1.7680 4,624,827 4,569,716Fondo de Inversión Santander Small Cap - 1.6464 - 4,255,336Celfin Small Cap Chile Investment Fund (new account) 1.5329 1.1545 3,962,036 2,984,103Banco ITAU on behalf of investors 1.3313 - 3,441,019 -AFP Provida S.A. for C Pension Fund 1.2921 - 3,339,707 -Siglo XXI Fondo de Inversión - 1.3803 - 3,567,723AFP Provida S.A. for Type B Pension Fund 1.0833 - 2,800,099 -AFP Habitat S.A. for C Pension Fund - 0.8133 - 2,102,103Other 10.2866 11.0032 26,587,259 28,439,529Total 100.0000 100.0000 258,469,000 258,469,000

(*) The shares have no par value.

12/31/2012 12/31/2011 12/31/2012 12/31/2011% % % %

153

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 16 - Equity (continued)

d) Dividends

i) Dividend policy:

As provided in Law 18,046, save resolution otherwise adopted unanimously by the General Shareholders Meeting, at least 30% of profits, if any, must be paid out as a dividend.

Forus S.A. has a dividend policy of distributing 40% of distributable net profits according to each annual balance sheet annually to shareholders, after deducting the payment of any interim dividends.

Below are the dividends per share approved by the Shareholders Meeting, payable against the profits from the 2010, 2011 and 2012 fiscal years. They are shown in pesos on the date of payment:

ii) Dividends distributed:

The Regular Shareholders Meeting held April 18, 2012 analyzed the cash situation, levels of projected investment and the sound financial indicators and therefore approved payment of a dividend of 40% of the profits earned in 2011. This percentage payment has been consistent with dividend payments in the last three years by the Company, which have been approved by the respective Regular Shareholders Meeting.

Note 16 - Equity (continued)

d) Dividends (continued)

ii) Dividends distributed (continued):

Dividends paid during 2012:

On April 18, 2012, the 21st Regular General Shareholders Meeting approved payment of a final dividend of $30.36899 per share against 2011 profits, additional to the interim dividend already paid, which was equal to paying a dividend of 40% of all fiscal year profits. This payment was made starting May 11, 2012.

On October 24, 2012, the Board approved payment of an interim dividend of $4,135,504,000 against 2012 fiscal year profits, equal to $16 per share. This dividend was paid starting November 23, 2012.

Dividends paid during 2011:

Dividend Paid Month of DividendNumber against payment per share20 2009 May 2010 9.4161521 2010 November 2010 11.6000023 2010 May 2011 18.4128225 2011 November 2011 13.6200026 2011 May 2012 30.3689927 2012 November 2012 16.00000

2012 2011 Against Total Fiscal Fiscal retained year profits year profits earnings K$ K$ K$ K$ Total dividends paid 4,135,504 7,849,442 - 11,984,946

2012 2011 Against Total Fiscal Fiscal retained year profits year profits earnings K$ K$ K$ K$ Total dividends paid 3,520,348 4,759,144 10,000,000 18,279,492

Type of shareholders

155

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 16 - Equity (continued)

e) Distributable net profit

According to Circular 1945 of the Securities and Insurance Commission dated September 29, 2009, on October 27, 2010, the Company’s Board of Directors decided to establish a policy of not making any adjustments to the item called “Profit (loss) attributable to owners of the controller” in the statement of comprehensive income of Forus S.A. in order to calculate its net distributable profit as mandated in article 78 of Law 18,046.

f) Other reserves

Other reserves were comprised as follows at December 31, 2012 and 2011:

The balance shown as a translation reserve is a reflection of the cumulative profits or losses on exchange fluctuations when the financial statements of subsidiaries abroad are translated from their functional currency to the currency of presentation (Chilean pesos). These amounts will be transferred to income when the subsidiary is sold or otherwise disposed of.

Note 16 - Equity (continued)g) Earning (loss) per share

The basic earning per share was calculated as indicated in Note 2 q). La ganancia por acción es de $121,3516 al 31 de diciembre de 2012 ($109, 9725 al 31 de diciembre de 2011).

The Group has not performed any transaction that has a potential dilutive effect that supposes a diluted earning per share different from the basic profit per share.

h) Capital Management

Forus S.A. maintains adequate capital ratios that support and give continuity and stability to its business. The Company also continuously monitors its capital structure and that of its subsidiaries in order to maintain an optimal structure that will reduce its capital costs.

The Company has been rated by Feller-Rate and Fitch Ratings as follows:

h.1) Feller - Rate: Shares: 1st Class, Level 3Solvency: AOutlook: StableRating Report: October 2012

h.2) Fitch Ratings:

Shares: 1st Class, Level 3Rating Report: October 2012

At December 31, 2012 Balance at Net Balance 1/1/2012 Movement 12/31/2012 K$ K$ k$ Translation reserve (423,815) (64,472) (488,287)Other 569,969 - 569,969Total 146,154 (64,472) 81,682

At December 31, 2011 Balance at Net Balance 1/1/2011 Movement 12/31/2011 K$ K$ k$ Translation reserve (1,484,185) 1,060,370 (423,815)Other 569,969 - 569,969Total (914,216) 1,060,370 146,154

157

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 17 – Other Current and Non-Current Financial Liabilities

Current and non-current financial liabilities are composed as follows:

a) At December 31, 2012:

Al At December 31, 2011:

Borrower Borrower Country Lender Bank or Currency Out to 90 From 91 More than More than More than Total Effective NominalTaxpayer Taxpayer ID Financial Institution days days to 1 1 year to 3 3 years to 5 5 years Interest Interest ID year year year Rate Rate K$ K$ K$ K$ K$ K$ % %

86.963.200-7 Forus S.A. Chile 97.004.000-5 Banco de Chile Dollar 380,929 - - - - 380,939 (*) (*)

86.963.200-7 Forus S.A. Chile 97.032.000-8 Banco BBVA Chile Dollar 371,003 - - - - 371,003 (*) (*)

86.963.200-7 Forus S.A Chile 97.006.000-6 Banco Crédito e Inversiones Dollar 145,370 - - - - 145,370 (*) (*)

86.963.200-7 Forus S.A. Chile 99.512.160-3 Metlife Chile S. de Vida S.A U.F 18,811 56,531 166,645 190,094 1,563,814 1,995,895 6.90% 6.90%

96.583.940-2 TopSafety S.A. Chile 97.004.000-5 Banco de Chile Dollar 20,094 - - - - 20,094 (*) (*)

0-E Uruforus S.A. Uruguay 0-E Banco Itaú Dollar 1,758,926 - - - - 1,758,926 6.14% 6.14%

0-E Forus Colombia Colombia 0-E Banco BBVA Colombian Peso 69 - - - - 69 3.13% 3.13%

Total 2,695,202 56,531 166,645 190,094 1,563,814 4,672,286

Borrower Borrower Country Lender Bank or Currency Out to 90 From 91 More than More than More than Total Effective NominalTaxpayer Taxpayer ID Financial Institution days days to 1 1 year to 3 3 years to 5 5 years Interest Interest ID year year year Rate Rate K$ K$ K$ K$ K$ K$ % %

86.963.200-7 Forus S.A. Chile 97.004.000-5 Banco de Chile Dollar 1,994,788 - - - - 1,994,788 (*) (*)

86.963.200-7 Forus S.A. Chile 97.018.000-1 Banco Scotiabank Dollar 141,143 - - - - 141,143 (*) (*)

86.963.200-7 Forus S.A. Chile 97.036.000-K Banco Santander-Santiago Dollar 56 - - - - 56 (*) (*)

86.963.200-7 Forus S.A. Chile 97.053.000-2 Banco Security Dollar 1,558,357 - - - - 1,558,357 (*) (*)

86.963.200-7 Forus S.A. Chile 97.032.000-8 Banco BBVA Chile Dollar 567,325 - - - - 567,325 (*) (*)

86.963.200-7 Forus S.A. Chile 99.512.160-3 Metlife Chile S. de Vida S.A U.F 16,858 51,570 152,153 173,561 1,622,406 2,016,548 6.90% 6.90%

96.583.940-2 TopSafety S.A. Chile 97.041.000-7 Banco Itaú Dollar 7,122 - - - - 7,122 (*) (*)

0-E Uruforus S.A. Uruguay 0-E Banco Itaú Dollar 948,848 - - - - 948,848 (*) (*)

0-E Pasqualini S.A. Uruguay 0-E Banco Itaú Dollar 339,450 - - - - 339,450 (*) (*)

0-E Perú Forus Perú 0-E Banco Continental de Perú New Sol 267,382 793,917 - - - 1,061,299 6.10% 6.10%

Total 5,841,329 845,487 152,153 173,561 1,622,406 8,634,936

(*) This corresponds to the purchase of merchandise under letters of credit accruing interest at different rates.

Note 17 - Other Current and Non-Current Financial Liabilities (continued)

Current and non-current financial liabilities were as follows, with no discounted flows:

At December 31, 2012:

At December 31, 2011

(*) These obligations correspond entirely to transactions under loan agreements to import merchandise (letters of credit). Although there is an explicit

interest rate, the debt is really being paid prior to the maturity dates, which do not exceed 90 days. Therefore, in general, the flows do not vary significantly from

the book balances recorded at the close of each period and they are thus recorded at their book value.

Borrower Borrower Country Lender Bank or Currency Out to 90 From 91 More than More than More than Total Effective NominalTaxpayer Taxpayer ID Financial Institution days days to 1 1 year to 3 3 years to 5 5 years Interest Interest ID year year year Rate Rate

K$ K$ K$ K$ K$ K$ % %

86.963.200-7 Forus S.A. Chile 97.004.000-5 Banco de Chile Dollar 380,929 - - - - 380,939 (*) (*)

86.963.200-7 Forus S.A. Chile 97.032.000-8 Banco BBVA Chile Dollar 371,003 - - - - 371,003 (*) (*)

86.963.200-7 Forus S.A Chile 97.006.000-6 Banco Crédito e Inversiones Dollar 145,370 - - - - 145,370 (*) (*)

86.963.200-7 Forus S.A. Chile 99.512.160-3 Metlife Chile S. de Vida S.A U.F 51,379 154,138 411,035 411,035 2,175,059 3,202,646 6.90% 6.90%

96.583.940-2 TopSafety S.A. Chile 97.004.000-5 Banco de Chile Dollar 20,094 - - - - 20,094 (*) (*)

0-E Uruforus S.A. Uruguay 0-E Banco Itaú Dollar 1,758,926 - - - - 1,758,926 6.14% 6.14%

0-E Forus Colombia Colombia 0-E Banco BBVA Colombian Peso 69 - - - - 69 3.13% 3.13%

Total 2,727,770 154,138 411,035 411,035 2,175,059 5,879,037

Borrower Borrower Country Lender Bank or Currency Out to 90 From 91 More than More than More than Total Effective NominalTaxpayer Taxpayer ID Financial Institution days days to 1 1 year to 3 3 years to 5 5 years Interest Interest ID year year year Rate Rate

K$ K$ K$ K$ K$ K$ % %

86.963.200-7 Forus S.A. Chile 97.004.000-5 Banco de Chile Dollar 1,994,788 - - - - 1,994,788 (*) (*)

86.963.200-7 Forus S.A. Chile 97.018.000-1 Banco Scotiabank Dollar 141,143 - - - - 141,143 (*) (*)

86.963.200-7 Forus S.A. Chile 97.036.000-K Banco Santander-Santiago Dollar 56 - - - - 56 (*) (*)

86.963.200-7 Forus S.A. Chile 97.053.000-2 Banco Security Dollar 1,558,357 - - - - 1,558,357 (*) (*)

86.963.200-7 Forus S.A. Chile 97.032.000-8 Banco BBVA Chile Dollar 567,325 - - - - 567,325 (*) (*)

86.963.200-7 Forus S.A. Chile 99.512.160-3 Metlife Chile S. de Vida S.A U.F 50,150 150,448 401,196 401,196 2,323,595 3,326,585 6.90% 6.90%

96.583.940-2 TopSafety S.A. Chile 97.041.000-7 Banco Itaú Dollar 7,122 - - - - 7,122 (*) (*)

0-E Uruforus S.A. Uruguay 0-E Banco Itaú Dollar 948,848 - - - - 948,848 (*) (*)

0-E Pasqualini S.A. Uruguay 0-E Banco Itaú Dollar 339,450 - - - - 339,450 (*) (*)

0-E Perú Forus (**) Perú 0-E Banco Continental de Perú New Sol 272,595 817,786 - - - 1,090,381 6.10% 6.10%

Total 5,879,834 968,234 401,196 401,196 2,323,595 9,974,055

159

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 18 – Non-Controlling Interests

The effect of non-controlling interests on equity and income is shown below:

At December 31, 2012

At December 31, 2011

Non-controlling Equity of Fiscal year Non-controlling Profit (loss) Interest Company profit (loss) Interest on non-controllingTaxpayer ID Company Interest % K$ K$ K$ K$

96.583.940-2 Topsafety S.A. 0.11 1,588,260 169,613 1,806 193

Foreign Perú Forus S.A. 0.02 3,591,879 666,920 807 150

76.807.960-9 Forus Safety S.A. 49.90 141,317 17,282 70,517 8,623

Foreign Forus Colombia S.A. 49.00 1,939,325 223,619 950,269 162,437

Total 7,260,781 1,077,434 1,023,399 171,403

Non-controlling Equity of Fiscal year Non-controlling Profit (loss) Interest Company profit (loss) Interest on non-controllingTaxpayer ID Company Interest % K$ K$ K$ K$

96.583.940-2 Topsafety S.A. 0.11 1,430,328 (161,862) 1,626 (184)

Foreign Perú Forus S.A. 0.02 2,976,329 490,049 668 110

76.807.960-9 Forus Safety S.A. 49.90 124,035 3,466 61,893 1,729

Total 4,530,692 331,653 64,187 1,655

Note 19 – Current Trade Payables and Other Current Accounts Payable

This line is shown below as of December 31, 2012 and 2011:

These obligations expire as follow:

At December 31, 2012

Items 12/31/2012 12/31/2011

K$ K$

Accounts payable 4,248,285 4,234,470

Withholdings 1,703,024 1,449,808

Royalties payable 637,836 568,878

Store leases 664,748 483,634

Advertising expenses 138,569 184,331

Foreign suppliers 936,931 1,187,702

Store supervisor collateral fund 657,987 559,336

Credit card commissions 83,309 45,319

Freight 116,206 296,687

Other 214,346 555,871

Total 9,401,241 9,566,036

Type of Liability Out to 1 1 to 3 More than 3 months Total

month month to 12 months current

K$ K$ K$ K$

Trade payables 2,332,498 838,878 1,076,909 4,248,285

Withholdings 1,591,238 - 111,786 1,703,024

Royalties payable 58,771 - 579,065 637,836

Store leases 664,748 - - 664,748

Advertising expenses 8,792 - 129,777 138,569

Foreign suppliers 114,542 611,207 211,182 936,931

Store supervisor collateral fund - - 657,987 657,987

Credit card commissions - - 83,309 83,309

Freight 63,840 42,816 9,550 116,206

Other 34,289 100,133 79,924 214,346

Total trade and other accounts payable 4,868,718 1,593,034 2,939,489 9,401,241

161

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 19 – Current Trade Payables and Other Current Accounts Payable

At December 31, 2011

Note 20 – Other Current Provisions

Current and non-current provisions broke down as follows at December 31, 2012 and 2011:

Type of Liability Out to 1 1 to 3 More than 3 months Total

month month to 12 months current

K$ K$ K$ K$Accounts payables 2,654,329 942,271 637,870 4,234,470Withholdings 1,056,478 - 393,330 1,449,808Royalties payable - - 568,878 568,878Store lease 418,032 65,602 - 483,634Advertising expenses - 21,619 162,712 184,331Foreign suppliers 651,229 206,258 330,215 1,187,702Store supervisor collateral fund - - 559,336 559,336Credit card commissions - - 45,319 45,319Freight 7,181 277,775 11,731 296,687Other 135,029 306,074 114,768 555,871

Total trade and other accounts payable 4,922,278 1,819,599 2,824,159 9,566,036

Item 12/31/2012 12/31/2011 K$ K$ Provision for events, royalties and other 45,176 110,065items Overhead provision 333,095 227,573Professional services provision 80,480 69,433Import expense provision 229,651 38,842Sampling expense provision 95,577 75,474Non-operating expense provision 150,000 163,323Other 85,257 203,517 1,019,236 888,227

Note 20 – Other Current Provisions (continued)

The movement of provisions was as follows in the 2012 and 2011 fiscal years:

This provision is an estimation of expenses on employee and related benefits, such as Directors’ interests, royalties and uniforms, training, cafeteria and meals, wholesale commissions, etc. The period of payment is less than one year.

This is an estimation of operating expenses, such as leases, distribution, advertising, travel, sampling, packing, surveillance and security, utilities and communications.The period of payment is less than 6 months.

a) Movements in provisions for 12/31/2012 12/31/2011events, royalties and other items K$ K$ Starting balance at January 1 110,065 161,008Increment in existing provisions 384,256 203,490Provisions used (447,981) (257,741)Other increase (decrease) (1,164) 3,308Ending balance 45,176 110,065

b) Movements in overhead provision 12/31/2012 12/31/2011 K$ K$ Starting balance at January 1 227,573 319,944Increment in existing provisions 1,339,015 1,741,354Provisions used (1,214,222) (1,843,573)Other increase (decrease) (19,271) 9,848Ending balance 333,095 227,573

163

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

c) Movement in professional services provisions

This is an estimation of professional services hired, such as advisors, external auditors, legal counsel, the central securities deposit, and risk rating agencies.The period of payment is less than 6 months.

This is an estimation of expenses to import merchandise, such as freight, insurance, warehousing, demurrage, intermediation, and customs broker.The period of payment is less than 3 months.

Note 20 – Other Current Provisions (continued)

This is an estimation of the expenses of requesting samples from different foreign suppliers. The main expense is freight and insurance.The period of payment is less than 6 months.

This is an estimation of the retirement of assets due to remodeling underway at the book closing.The period of payment is less than 3 months.

The Company and its subsidiaries did not have any non-current provisions on its books at December 31, 2012 and 2011.

c) Movimientos provisión 12/31/2012 12/31/2011servicios profesionales K$ K$ Starting balance at January 1 69,433 251,508Increment in existing provisions 104,281 187,703Provisions used (93,234) (371,942)Other increase (decrease) - 2,164Ending balance 80,480 69,433

d) Movement in import provision 12/31/2012 12/31/2011 K$ K$ Starting balance at January 1 38,842 53,407Increment in existing provisions 618,011 375,088Provisions used (427,202) (390,314)Other increase (decrease) - 661Ending balance 229,651 38,842

e) Movement in sampling 12/31/2012 12/31/2011expense provision K$ K$ Starting balance at January 1 75,474 4,209Increment in existing provisions 276,705 71,265Provisions used (256,602) -Ending balance 95,577 75,474

f) Movement in non-operating 12/31/2012 12/31/2011expense provision K$ K$ Starting balance at January 1 163,323 854,937Increment in existing provisions 16,979 100,000Provisions used (30,302) (791,614)Ending balance 150,000 163,323

165

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 21 – Current Employee Benefit Provisions

These provisions are broken down below as of December 31, 2012 and 2011:

The movements in employee benefit provisions were as follows during the 2012 and 2011 periods:

Note 21 – Current Employee Benefit Provisions (continued)

Items 12/31/2012 12/31/2011 K$ K$ Compensation and bonus provision 1,240,651 1,010,426Vacation provision 1,340,958 1,187,567Severance provision 164,864 124,138Other benefits provisions 120,600 188,144Total 2,867,073 2,510,275

a) Movement in compensation 12/31/2012 12/31/2011and bonus provision K$ K$ Starting balance at January 1 1,010,426 1,086,796Increase in existing provisions 2,545,056 624,641Provisions used (2,314,831) (708,977)Other increases (decreases) - 7,966Ending balance 1,240,651 1,010,426

b) Movements in vacation provision 12/31/2012 12/31/2011 k$ k$ Starting balance at January 1 1,187,567 917,235Increase in existing provisions 498,295 1,254,972Provisions used (341,716) (984,640)Other increases (decreases) (3,188) -Ending balance 1,340,958 1,187,567

c) Movements in severance provision 12/31/2012 12/31/2011 k$ k$ Starting balance at January 1 124,138 124,724Increase in existing provisions 436,308 535,358Provisions used (395,582) (535,944)Ending balance 164,864 124,138

167

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 22 – Other Current Non-Financial Liabilities

This line was composed as follows at December 31, 2012 and 2011:

Note 23 – Administrative Expenses

Administrative expenses consisted of the following at December 31, 2012 and 2011:

Note 24 – Exchange Differentials

Exchange differentials were as follows at December 31, 2012 and 2011:

Items 12/31/2012 12/31/2011 k$ k$ Dividends payable 5,274,184 5,006,994VAT payable 1,593,784 1,398,451Other 65,213 53,881Total 6,933,181 6,459,326

2012 2011 k$ k$ Wages and salaries 20,795,862 17,627,140Rent and shared expenses 12,074,725 10,159,723Depreciation, amortization and impairment 4,364,079 4,595,068Consulting and professional services 1,335,159 1,080,729Utilities 1,012,018 1,180,114Computer expenses 1,019,008 886,909Materials and inputs 1,210,659 977,115Card sales commissions 1,965,440 1,566,207Advertising 5,524,341 5,022,849Royalty 4,383,133 3,211,432Other 3,938,511 3,978,591Total 57,622,935 50,285,877

Currency 2012 2011Assets (debits) / credits K$ K$ Cash Dollar (128,060) 9,905Marketable securities Dollar (208,014) 423,026Trade receivables (net) Dollar 19,846 (13,064)Miscellaneous receivables (net) Dollar 18,251 148,178Accounts receivable from related parties Dollar (212,588) 239,455Inventories (net) Dollar - 3,303Recoverable taxes Dollar 8,088 14,119Prepaid expenses Dollar (6,147) 7,838Other current assets Dollar 2,143 (8)Other long-term assets Dollar (638) -Total (debits) credits (507,119) 832,752

Currency 2012 2011Liabilities (debits) / credits K$ K$

Short-term bank debt Dollar (998,280) 119,401Accounts payable Dollar 364,916 (385,805)Accounts payable to related parties Dollar 120,288 58,367Income tax Dollar (780) (8,390)Provisions Dollar (180) (10,903)Withholdings Dollar (47) (2,403)Other current liabilities Dollar 9,381 (24,075)Long-term bank debt Dollar - 8,247Deferred taxes Dollar (6) 2,408Other Dollar - (7,884)Total (debits) / credits (504,708) (251,037)Profit (loss) on exchange differentials (1,011,827) 581,715 169

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 25 – Income from Units of Adjustment

Income from units of adjustment was as follows at December 31, 2012 and 2011:

Note 26 - Leases

a) Financial leases

The Parent Company has a financial lease in effect that was made September 29, 2009 for a total of UF 95,942.55 with Metlife Chile Seguros de Vida S.A. for the property located at Camino a Melipilla 9400 in the borough of Cerrillos in the city of Santiago. The book value was K$2,456,373 (K$2,474,651 at December 31, 2011).

The obligations under this lease broke down as follows at December 31, 2012 and 2011:

Financial liabilities are itemized in Note 17.

Adjustment 2012 2011Item Index K$ K$ Non-monetary assets U.F. 51,227 (3,376)Non-monetary liabilities U.F. (86,652) (96,896)Total debits (35,425) (100,272)

12/31/2012 12/31/2011 Outstanding Short Long Outstanding Short Long installments term term installments Term term K$ K$ K$ K$Obligation 12 205,517 2,997,129 12 200,598 3,125,987Deferred interest 175 (130,175) (1,076,576) 187 (132,170) (1,177,867)Total 187 75,342 1,920,553 199 68,428 1,948,120

Note 26 - Leases (continued)

a) Financial leases (continued)

Financial leases expired as follows at December 31, 2012 and 2011:

Total debt Short-term At December 31, 2012 Original amount Interest Expiration outstanding portion of principal rate Long-term portion borrowed % Long 2013 2014 2015 2016 2017 2018 2019 UF term and beyond K$ K$ K$ K$ K$ K$ K$ K$ K$ K$

Rent owed

3,202,646 205,517 2,997,129 205,517 205,517 205,517 205,517 205,517 205,517 1,764,027 95,942.55 6.9% Jul-2028

Total debt Short-term At December 31, 2012 Original amount Interest Expiration outstanding portion of principal rate Expiration Long-term portion borrowed % Long 2011 2012 2013 2014 2015 2016 2017 and UF term beyond

K$ K$ K$ K$ K$ K$ K$ K$ K$ K$

Rent owed 3.326.585 200.598 3.125.987 200.598 200.598 200.598 200.598 200.598 200.598 1.922.399 95.942,55 6,9% Jul-2028

171

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 26 - Leases (continued)

b) Operating leases

The Company and its subsidiaries have leases outstanding for stores in which it conducts its business. Those obligations consist of minimum rent and break down as follows:

Neither the Company nor its subsidiaries have individually significant leases that impose restrictions on dividend payments, making other leases or assuming debt.

The variable payments included in store leases generally relate to the volume of sales by those stores.

The Company and its subsidiaries’ policy is to automatically renew its leases.

Note 27 – Contingencies and Restrictions

At December 31, 2012 and 2011, there were no liens or guarantees in the Company and its subsidiaries or mortgages or guarantees established on its assets.

a) Direct commitments

The Company and its subsidiaries held guarantees with different entities at December 31, 2012 and 2011 for the following reasons:

- Lease guarantees, mainly consisting of bank bonds.

- Standby letters of credit issued in favor of foreign suppliers and bank guarantees for operations of its foreign subsidiaries, which have been taken with different banks.

12/31/2012 12/31/2011 Minimum rent Minimum rent K$ K$ Out to one year 1,829,853 1,227,857From one year to five years 4,113,579 2,506,020More than five years 3,999,440 3,845,554Total 9,942,872 7,579,431

173

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 27 – Contingencies and Restrictions (continued)

Guarantees are itemized below:

a) Direct commitments (continued)Guarantee in favor of Debtor Namer Type of 12/31/2012 12/31/2011 Guarantee K$ K$

Banco de Chile Forus S.A. Guarantee bond 24,668 24,078Banco de Chile Forus S.A. Guarantee bond 9,136 8,918Banco de Chile Forus S.A. Guarantee bond 6,852 6,688Cencosud Shopping Centers S.A. Forus S.A. Guarantee bond 35,220 34,377Inmobiliaria Mall Calama S.A. Forus S.A. Guarantee bond 7,095 6,925Inmobiliaria Mall Calama S.A. Forus S.A. Guarantee bond 4,791 4,676Inmobiliaria Mall Calama S.A. Forus S.A. Guarantee bond 4,682 4,570Parque Arauco S.A. Forus S.A. Guarantee bond 27,192 26,541Parque Arauco S.A. Forus S.A. Guarantee bond 51,552 50,318Parque Arauco S.A. Forus S.A. Guarantee bond 72,908 71,163Parque Arauco S.A. Forus S.A. Guarantee bond 57,975 56,588Parque Arauco S.A. Forus S.A Guarantee bond 7,720 -Parque Arauco S.A. Forus S.A. Guarantee bond 3,335 -Parque Arauco S.A. Forus S.A. Guarantee bond 38,372 37,454Parque Arauco S.A. Forus S.A. Guarantee bond 13,184 12,869Parque Arauco S.A. Forus S.A. Guarantee bond 17,590 17,169Parque Arauco S.A. Forus S.A. Guarantee bond 18,397 17,957Plaza Alameda S.A. Forus S.A. Guarantee bond 3,678 3,590Plaza Alameda S.A. Forus S.A. Guarantee bond 3,391 3,310Plaza Alameda S.A. Forus S.A. Guarantee bond 12,648 12,346Plaza Antofagasta S.A. Forus S.A. Guarantee bond 4,110 4,012Plaza Antofagasta S.A. Forus S.A. Guarantee bond 5,665 5,529Plaza Antofagasta S.A. Forus S.A Guarantee bond 6,487 -Plaza del Trébol S.A Forus S.A. Guarantee bond 8,497 8,293Plaza del Trébol S.A. Forus S.A. Guarantee bond 8,244 8,047Plaza del Trébol S.A. Forus S.A. Guarantee bond 8,934 8,720Plaza del Trébol S.A Forus S.A. Guarantee bond 6,395 6,242Plaza del Trébol S.A Forus S.A. Guarantee bond 3,449 3,366Plaza del Trébol S.A Forus S.A. Guarantee bond 6,190 -Plaza La Serena S.A. Forus S.A. Guarantee bond 8,337 8,137Plaza la Serena S.A. Forus S.A. Guarantee bond 3,706 3,617Plaza la Serena S.A. Forus S.A. Guarantee bond 6,327 -Plaza la Serena S.A. Forus S.A. Guarantee bond 5,824 -

Guarantee in favor of Debtor Namer Type of 12/31/2012 12/31/2011 Guarantee K$ K$ Banco Crédito e Inversiones Forus S.A. Standby L/C - 259,600Banco Crédito e Inversiones Forus S.A. Standby L/C - 7,944Banco Crédito e Inversiones Forus S.A. Standby L/C 345,571 -Banco Crédito e Inversiones Forus S.A. Standby L/C 3,090 -Banco Crédito e Inversiones Forus S.A. Standby L/C 14,399 -Banco Crédito e Inversiones Forus S.A. Standby L/C 7,852 8,494Banco Crédito e Inversiones Forus S.A. Standby L/C 6,434 6,960Banco Crédito e Inversiones Forus S.A. Standby L/C 7,962 8,612Banco Crédito e Inversiones Forus S.A. Standby L/C 2,783 3,010Banco Crédito e Inversiones Forus S.A. Standby L/C - 15,576Banco Crédito e Inversiones Forus S.A. Standby L/C 2,520 2,726Banco Crédito e Inversiones Forus S.A. Standby L/C 2,250 2,434Banco Crédito e Inversiones Forus S.A. Standby L/C 64,507 69,780Banco Crédito e Inversiones Forus S.A. Standby L/C 3,192 3,453Banco Crédito e Inversiones Forus S.A. Standby L/C 4,128 4,465Banco Crédito e Inversiones Forus S.A. Standby L/C 21,838 -Banco Crédito e Inversiones Forus S.A. Standby L/C 10,786 -Banco Crédito e Inversiones Forus S.A. Standby L/C 14,448 -Banco Crédito e Inversiones Forus S.A. Standby L/C 14,324 -Banco Crédito e Inversiones Forus S.A. Standby L/C 11,244 -Banco Crédito e Inversiones Forus S.A. Standby L/C 8,084 -Banco Itaú Forus S.A. Standby L/C - 259,600Banco Itaú Forus S.A. Standby L/C - 571,120Banco Itaú Forus S.A. Standby L/C - 1,349,920Banco Itaú Forus S.A. Standby L/C 1,919,840 -Banco Itaú Forus S.A. Standby L/C 623,948 -Banco Itaú Forus S.A. Standby L/C 811,286 877,614BBVA Forus S.A. Standby L/C - 2,596,000

Note 27 – Contingencies and Restrictions (continued)

a) Direct commitments (continued)

175

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Guarantee in favor of Debtor Namer Type of 12/31/2012 12/31/2011 Guarantee K$ K$ Plaza Los Angeles S.A. Forus S.A. Guarantee bond 2,311 2,256Plaza Los Angeles S.A. Forus S.A Guarantee bond 3,930 3,836Plaza Oeste S.A. Forus S.A. Guarantee bond 5,432 5,302Plaza Oeste S.A. Forus S.A. Guarantee bond 5,956 5,814Plaza Oeste S.A. Forus S.A. Guarantee bond 5,664 5,528Plaza Oeste S.A. Forus S.A. Guarantee bond 191,862 187,270Plaza Oeste S.A. Forus S.A. Guarantee bond 3,805 -Plaza Oeste S.A. Forus S.A. Guarantee bond 4,345 4,241Plaza Oeste S.A. Forus S.A. Guarantee bond 4,619 4,508Plaza Tobalaba S.A. Forus S.A. Guarantee bond 2,970 2,899Plaza Tobalaba S.A. Forus S.A. Guarantee bond 5,840 5,701Plaza Tobalaba S.A. Forus S.A Guarantee bond 5,527 -Plaza Tobalaba S.A. Forus S.A. Guarantee bond 5,410 5,281Plaza Vespucio S.A. Forus S.A. Guarantee bond 11,271 11,001Plaza Vespucio S.A. Forus S.A. Guarantee bond 8,035 7,843Rentas e Inversiones Punta Arenas Forus S.A. Guarantee bond 10,194 -Rentas e Inversiones Punta Arenas Forus S.A. Guarantee bond 7,674 7,491Rentas e Inversiones Punta Arenas Forus S.A. Guarantee bond 8,154 7,959Saitec S.A. Forus S.A. Guarantee bond 4,086 3,988Saitec S.A. Forus S.A. Guarantee bond 5,095 4,973Saitec S.A. Forus S.A. Guarantee bond 6,231 6,082Adm. Plaza Vespucio S.A. Forus S.A. Guarantee bond 4,077 -Adm. Plaza Vespucio S.A. Forus S.A. Guarantee bond 9,045 8,828Adm. Plaza Vespucio S.A. Forus S.A. Guarantee bond 5,893 5,752Nuevos Desarrollos S.A. Forus S.A. Guarantee bond 3,198 3,121Nuevos Desarrollos S.A. Forus S.A. Guarantee bond 3,655 -Vivo Melipilla Forus S.A. Guarantee bond 3,563 -

Guarantee in favor of Debtor Namer Type of 12/31/2012 12/31/2011 Guarantee K$ K$ E.U. Downtown Viña Forus S.A. Guarantee bond 7,219 -E.U. Downtown Viña Forus S.A. Guarantee bond 7,294 -Mall Centro Concepción Forus S.A. Guarantee bond 2,111 -Mall Centro Concepción Forus S.A. Guarantee bond 1,471 -Portal Centro Talca Forus S.A. Guarantee bond 2,056 -Portal Centro Talca Forus S.A. Guarantee bond 3,281 -Liang Ming Ye Forus S.A. Guarantee bond 77,659 -Investigaciones y Cobranzas el Libertador Forus Colombia S.A. CDT-Country 4,072 4,142Investigaciones y Cobranzas el Libertador Forus Colombia S.A. CDT-Andino 27,659 26,993Fideicomiso Sudamericana Forus Colombia S.A. Trust-Titan Plaza 16,286 16,035Banco Itaú - Dollars Uruforus S.A. Promissory note 9,599 12,980Banco Itaú - Dollars Uruforus S.A. Promissory note 11,433 15,576Banco Itaú - Dollars Uruforus S.A. Promissory note 4,800 10,384Banco Itaú - Dollars Uruforus S.A. Promissory note 14,399 5,192Banco Itaú – Uruguayan Pesos Uruforus S.A. Promissory note 4,750 -Aventura Plaza Perú Forus S.A Guarantee 4,805 -Aventura Plaza Perú Forus S.A Guarantee 66 -Aventura Plaza Perú Forus S.A Guarantee 4,500 -Aventura Plaza Perú Forus S.A Guarantee 3,200 -Hipermercados Metro S.A. Perú Forus S.A. Guarantee 2,938 -SBP del Cuzco Perú Forus S.A. Guarantee 5,565 -SBP del Cuzco Perú Forus S.A. Guarantee 140 -Javier Navarro Pastor Perú Forus S.A. Guarantee 1,727 -Jacinto Poblete Perú Forus S.A. Guarantee 7,889 -Jacinto Poblete Perú Forus S.A. Guarantee 4,221 -Aida Isolina Briceño Hurtado de Roque Perú Forus S.A Guarantee 960 -Aida Isolina Briceño Hurtado de Roque Perú Forus S.A. Guarantee 960 -Franco Supermercados Perú Forus S.A. Guarantee 235 -Compañía de Seguros S.A. Perú Forus S.A. Guarantee 2,906 -

Note 27 – Contingencies and restrictions (continued)

a) Direct commitments (continued)

Note 27 - Contingencies and Restrictions (continued)

a) Direct commitments (continued)

177

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

b) Indirect commitments

The Company and its subsidiaries had no indirect commitments at December 31, 2012 and 2011.

c) Lawsuits or other legal actions in which the Company is involved.

There were no lawsuits or legal actions against the Company and its subsidiaries as of December 31, 2012 that might materially affect these consolidated financial statements.

d) Restrictions

The Parent Company, Forus S.A., and its subsidiaries are not subject to limitations or prohibitions associated with any type of loan transaction since they owe no bank debt except for the purchase of merchandise. The only restrictions and/or prohibitions in effect involve not subleasing the premises where the Company’s stores are located and, in the opinion of management, this situation will remain the same in the coming fiscal years.

Note 28 – Risk Management

Objectives and policies of financial risk management

The main liabilities of Forus S.A. include, in addition to the derivatives contracted to hedge dollar variations, bank debt for foreign trade letters of credit, accounts payable, supplier debt and payables. These liabilities are a normal part of the financing of its operations and businesses and are generally short term and paid with the cash flows generated by the businesses.

The Company and its subsidiaries maintain adequate levels of cash and cash equivalent coming directly from its operations, which it uses to pay its short-term debt without any problem.

The Company also holds diverse financial investments as part of its investment and cash surplus optimization policy, which are managed by specialists.

Note 28 – Risk Management (continued)

Forus S.A. is exposed to market risk, credit risk and liquidity risk. Senior management supervises the management of those risks by controlling compliance with the regulatory framework for financial risk.

The Company’s Corporate Finance Division makes sure that activities entailing a financial risk are controlled by adequate policies and procedures and the financial risks are identified, measured and controlled according to internal policies. All derivatives activities and transactions intended to manage the risk of changes in the exchange rate (US$) are carried out by teams of specialists that have the abilities, experience and appropriate supervision.

The Board of Directors reviews and approves the policies for managing each of the risks summarized below:

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate due to changes in market prices. Market prices entail three types of risk: interest rate, currency and commodity prices.

- 57.28% of interest-bearing loans correspond to letters of credit expiring in less than 30 days, which have no materially adverse impact on the Company’s income. The Company is liquid and has cash to pay all this debt without any inconvenience.

- The remaining 42.72% is represented by leasing debt at a fixed rate of 6.9%.

- Foreign currency exchange risks: At December 31, 2012, approximately 57.28% around KUS$5,576) of the Company’s aggregate financial debt was expressed in U.S. Dollars.

Guarantee in favor of Debtor Namer Type of 12/31/2012 12/31/2011 Guarantee K$ K$ Aventura Plaza S.A. Perú Forus S.A. Guarantee 47 -Los Portales S.A. Perú Forus S.A. Guarantee 1,842 -Maria Roxana Valdivia Bachi Perú Forus S.A. Guarantee 151 -Aida Isolina Briceño Hurtado de Roque Perú Forus S.A. Guarantee 1,439 -

Note 27 - Contingencies and Restrictions (continued)

179

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 28 – Risk Management (continued)

a) Riesgo de mercado (continuación)

An appreciation of $1 in the American dollar could have an adverse impact on the Company’s income given the net liability position in dollars that it maintained at the close of the financial statements. The Company has contracted forwards to hedge against this exchange rate risk.

- Commodity price risks: Commodity prices do not present significant risks because of variations in those prices given the characteristics of the businesses of the Company and its subsidiaries.

Exchange rate sensitivity analysis

There was a loss of K$1,011,827 due to exchange differentials recognized in the consolidated statement of comprehensive income as of December 31, 2012 and 2011 because of assets and liabilities denominated in foreign currencies (a profit of K$581,715 in 2011).

Considering the Company’s businesses, exposure to variations in the exchange rate lies mainly in its debt for imports and associated letters of credit. At December 31, 2012, assuming a 5% increase or decrease in the exchange rates provided all other variables remain constant, such as interest rates, the effect on the Company’s income is estimated to be an after-tax loss (profit) of K$535,605.

Note 28 – Risk Management (continued)

b) Credit risk

Credit risk is the risk that a counterparty not fulfill its obligations under a financial instrument or a client not fulfill its obligations under a contract, which leads to a financial loss. Forus S.A. is exposed to credit risk because of its operating activities mainly because of trade receivables and its investment activities, including deposits, bonds, mutual funds, foreign currency transactions and other financial instruments, such as derivatives.

The credit risk involved in its sales is controlled by the local finance division and by the credit and collections officers, subject to the policy set by the Company, to the procedures and to the controls relating to customer credit risk management. Credit limits are set for all customers based on internal rating standards. Trade accounts receivable pending payment are monitored on a regular basis. The credit policy for a new client in the Wholesale segment is based on the evaluation of its commercial history and a review of its commercial relationship with the Company. Once this information has been analyzed, a limit is set of 10% on its annual sales. That credit limit can be changed in line with the Company’s brand specialized marketing and the client’s payment record. Outstanding credit limits of the 7 main Wholesale clients are reviewed every six months by the Board.

The Retail credit policy is in line with the conditions offered by the credit card issuers (1, 3, 6 or more installments, with or without interest).

The Company reduces credit risk by preparing a monthly report on past-due accounts receivable that analyzes the main customers with credit risk and is useful to the Finance Division in determining actions to take and decisions to make.

Given the characteristics of the Company’s business, credit risk is controlled and monitored separately by retail and wholesale.

181

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 28 – Risk Management (continued)

b) Riesgo de crédito (continuación)

As of December 31, 2012, the retail business represented 51.1% of all accounts receivable and 38.3% corresponded to credit card sales, mainly bank credit cards (41.5% at December 31, 2011), and 12.8% to sales paid by check and under agreements (8.0% at December 31, 2011). Of this total, credit cards bear no risk as the banks pay their customers’ debt and the historic uncollectibility of checks and agreements has been less than 0.2%.

In the wholesale business, on the other hand, out of a total of 48.9% of all accounts receivable, 35.8% corresponded to sales to the leading department stores (42.1% at December 31, 2011), which have a very good collections history despite this risk being greater in 2011 because of specific troubles of one of the national retailers. The remainder, 13.1%, is spread among a variety of wholesale distributors (8.5% at December 2011), where the history of uncollectibility is also below 0.2%.

These accounts receivable are not backed by guarantees.Credit risk in relation to balances with banks and financial institutions is controlled by the corporate and local finance division according to internal policies. Surpluses are invested only with appropriate counterparties that qualify pursuant to the Company’s policy.

Note 28 – Risk Management (continued)

c) Liquidity risk

Forus S.A. maintains a liquidity policy consistent with an adequate management of assets and liabilities that endeavors for customers to make payments when due and to optimize daily surpluses. Its general policy is also to pay its suppliers and creditors between 30 and 90 days.

The Company manages liquidity in a way that anticipates payment obligations to ensure payment within due dates. Forus S.A. uses financial instruments such as time deposits, bonds, stock, mutual funds and other items to invest its cash surpluses.

d) Interest rate risk

In general, the Company has little exposure to interest rate risk, as explained below:

i) Cash flow interest rate risk

The Company is exposed to interest rate risk because of the debt it owes to, or is owed by, third parties. It is represented mostly by leasing debt and by letters of credit for the import of merchandise. Given the characteristics of these obligations, interest rate risk is low.

ii) Fair value interest rate risk

The Company has little exposure to the risk associated with fluctuations in market interest rates because more than 99.63% of the balance held in Other Current Financial Assets corresponds to units in local and foreign mutual funds that are appraised at their fair value. The rate risk lies mainly in investments in bonds, which accounted for 0.36% at December 31, 2012 and are part of an investment portfolio that can be liquidated quickly if there are signs of a loss in value.

183

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 28 – Risk Management (continued)

e) Capital management

Forus S.A. manages its cash surpluses by making high-quality and easily convertible investments in instruments such as time deposits, mutual funds and financial instruments. Those investments are managed by specialists, namely Celfin Capital, Banchile and IM Trust.

f) Inflation risk

Due to the indexation of the Chilean capital market to inflation, a part of Forus S.A.’s assets and liabilities is denominated in Unidades de Fomento (U.F.). Therefore, there is a risk for the Company should inflation be higher than predicted. 42.72% of the Company’s financial debt was expressed in UF at December 31, 2012.

Considering a variation of 3.0% in inflation above what is expected for the year, provided all other variables remain constant, the result would be a variation of K$64,657 when applied to the net position of the Company in UF (including leases indexed to UF and assets in UF).

Note 29 – Third-Party Security

The Company held collateral for store leases amounting to K$8,076 at December 31, 2012 (K$294,198 at December 31, 2011).

Note 30 - Research and Development Expenses

Neither the Parent Company nor its Subsidiaries have made any disbursements for research and development as defined in Circular 981 of the Securities and Insurance Commission.

Note 31 – Disclosures

In 2012:

a) The 21st Regular General Shareholders Meeting, held April 18, 2012, approved the following:

• The annual report, balance sheet and financial statements of the Company for the fiscal year ending December 31, 2011.• Payment of a final dividend amounting to $7,849,441,754 on account of net profits from the 2011 fiscal year, at the rate of $30.36899 per share, payable in cash starting May 11, 2012 to those shareholders registered in the Company’s registry on the fifth business day before the payment date.• Appointment of Ernst & Young Servicios Profesionales de Auditoria y Asesoría Ltda. as independent auditors, and• Delegation to the Board of the appointment of risk rating agencies from among Feller-Rate Clasificadora de Riesgo Ltda., Fitch Chile Clasificadora de Riesgo Ltda., International Credit Rating Compañia Clasificadora • de Riesgo Ltda. and Clasificadora de Riesgo Humphreys Ltda.• Notices of the Company’s Shareholders Meetings will be published in 2012 in the newspaper Diario Financiero.

185

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Nota 31 - Hechos Relevantes (continuación)

In 2012:

b) On April 19, 2012, Forus S.A. and Wolverine Worldwide Inc. materialized the joint work agreement for the Colombian market of the RKF (Rockford), Hush Puppies, Cushe, Merrell and CAT brands, through the subsidiary Forus Colombia S.A. and Lifestyle Brands of Colombia S.A.S.

On that same date, Wolverine Worldwide Inc. therefore acquired 49% of the stock of Forus Colombia S.A. for the price of US$1,603,914.55. The remaining 51% continues to be held by the Company. This company will develop the Hush Puppies and Cushe brands, for which it holds a license.

Moreover, Wolverine World Wide Inc. acquired 51% and Forus S.A. 49% of the shares in Lifestyle Brands of Colombia S.A.S. in the subscription of cash shares in the capital increase approved on that date. This transaction represented a disbursement of US$1,225,000 for the Company. Lifestyle Brands of Colombia S.A.S. will operate the RKF (Rockford) brand, owned by Forus, and the Merrell and CAT brands, for which Wolverine Worldwide Inc. holds licenses.

c) On June 4, 2012, Mr. Eduardo Aninat Ureta from his chairmanship and membership of Directors Committee of the Company, notified by letter dated June 1, 2012.

d) On June 20, 2012, the Directors Committee of the Company accepted the resignation of Mr. Eduardo Aninat Ureta from his chairmanship and membership of the Directors Committee of the Company.

The Board adopted the following resolutions at the meeting held on June 20, 2012:

• The resignation of Mr. Eduardo Aninat Ureta indicated above was accepted.• Mr. Francisco Gutierrez Philippi was appointed as a new member of the Directors Committee.• Mr. Eduardo Aninat Ureta will continue to be a member of the Board until the next shareholders meeting. The entire board will be renewed at said next meeting.

Note 31 – Disclosures

In 2012:

e) On October 24, 2012, the Board approved an interim cash dividend of CH$4,135,504,000 on account of 2012 fiscal year profits, or CH$16 per share, paid starting November 23, 2012.

In 2011:

a) The 20th Regular General Shareholders Meeting, held April 21, 2011, approved the following:

• The annual report, balance sheet and financial statements of the Company for the fiscal year ending December 31, 2010.• Payment of a final dividend amounting to $4,759,144,290 on account of net profits from the 2010 fiscal year, at the rate of $18.41282 per share, payable in cash starting May 6, 2011.• Notices of the Company’s Shareholders Meetings will be published in 2011 in the newspaper Diario Financiero.

b) On May 25, 2011, the 14th Special General Shareholders Meeting was held at which the following resolutions were adopted:

• to add to the business purpose by approving the manufacture, import, distribution and sale of any type of chattel goods, whether raw materials or manufactured goods, regardless of the business, in any form, pro se or for account of third parties, including but not limited to, the sale of products related to foods and beverages, books, music, electronic goods, home goods, accessories and the like, whether or not related to the foregoing; and to specify the real estate business of the Company• to pay a dividend amounting to CH$10,000,000,190, at the rate of CH$38.68936 per share, on account of retained earnings from previous years. It was paid starting June 3, 2011.

187

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

Note 31 – Disclosures (continued)

Año 2011:

c) On October 26, 2011, the Board approved an interim cash dividend of CH$3,520,347,780 on account of 2011 fiscal year profits, or CH$13.62 per share, paid starting November 18, 2011.

Note 32 –Subsequent Events

No events have occurred from December 31, 2012 to the date of issuance of these consolidated financial statements that might materially affect the economic and financial position and/or interpretation of these financial statements.

Note 33 - Environment

The Company and its subsidiaries made no disbursements for environmental protection in the fiscal years ending on December 31, 2012 and 2011 as its main business has no environmental impact.

01/01/2012

12/31/2012

Cash flows from (used in) operating activities K$

Types of income from operating activities

Sale of goods and services 193,022,561

Premiums and payments, annuities and other benefits from policies 243,334

Other income from operating activities 73,835

Types of payments

Payments to suppliers for goods and services (121,840,445)

Payments to and on account of employees (17,970,045)

Payments for premiums and payments, annuities and other obligations under policies (192,075)

Other payments in operating activities (462,986)

Net cash flow from (used in) operation 52,874,179

Interest paid, classified as operating activities (103,613)

Interest received, classified as operating activities 1,091

Income taxes paid (recovered), classified as operating activities (11,383,123)

Other cash receipts (outlays), classified as operating activities (12,694,085)

Cash flows from (used in) operating activities 28,694,449

Note 34 – Cash Flow Statements, Direct Method, Pro Forma

According to rules of the Securities and Insurance Commission contained in Circular Letter No. 2058 dated February 3, 2012, below is the Company’s pro forma cash flow at December 31, 2012, calculated using the direct method.

189

FORUS S.A. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2012 and 2011

01/01/2012

12/31/2012

K$Cash flows from (used in) investing activities Other income from the sale of equity or debt instruments from other entities, classified asinvesting activities 840,506Other payments to acquire interests in joint business, classified as investing activities (618,975)Loans to related parties (2,103,647)Proceeds from the sale of property, plant and equipment, classified as investing activities 46,879Purchases of property, plant and equipment, classified as investing activities (11) (7,723,631)Purchases of intangible assets, classified as investing activities (9) (328,064)Purchases of other long-term assets, classified as investing activities (19,169)Payments under forwards, term contracts, option contracts and cross-currency swaps classified asinvesting activities (354,030)Income from forwards, term contracts, option contracts and cross-currency swaps classified as investing activities 270,040Income from related parties 1,421,822Dividends received, classified as investing activities(8) 235,969Interest received, classified as investing activities 206,393Other cash receipts (outlays), classified as investing activities (6,671,365)Cash flows from (used in) investing activities (14,797,272) Cash flows from (used in) finance activities Proceeds from loans, classified as finance activities 21,867,443Proceeds from short-term loans 21,867,443Reimbursement of loans, classified as finance activities (29,480,125)Dividends paid, classified as finance activities (11,984,946)Interest paid, classified as finance activities (6,288)Other cash receipts (outlays), classified as finance activities 18,312Cash flows from (used in) finance activities (19,585,604)Increase (decrease) in cash and cash equivalent before the effect of changes in the exchange rate (5,688,427)Effects of the variation in the exchange rate on cash and cash equivalent Effects of the variation in the exchange rate on cash and cash equivalent 21,732Increase (decrease) in cash and cash equivalent (5,666,695)Cash and cash equivalent (Initial Balance) 20,453,487Cash and cash equivalent (Final Balance) 14,786,792

Note 34 – Cash Flow Statements, Direct Method, Pro Forma (continued)

Explanatory AnalysisConsolidated Financial

Statements

FORUS S.A. AND SUBSIDIARIES

December 30, 2012 andDecember 31, 2011

191

Market Analysis

The Business

Forus S.A. sells a broad portfolio of footwear, clothing and accessories of its own and licensed brands that include Hush Puppies, Caterpillar, Merrell, Columbia, Brooks, Nine West, Calpany, Rockford, Sebago, Mountain Hardwear, Montrail, Sanuk, Azaléia, Norseg. It does business directly through its parent company and through subsidiaries in Chile, Peru, Colombia and Uruguay.

It now has 239 stores in the main cities in Chile and 93 stores through its international subsidiaries. It also engages in the wholesale business, where it sells to important customers such as Paris, Falabella and Ripley in Chile.

The company is focused on strengthening the value of its brands and its retail business and it has developed long-term relations with licensors.

Analysis of Financial Situation

a) Assets (in millions of pesos or MCH$)

Current Assets

Current assets varied significantly because of the increase of MCH$2.811 in trade receivables. This was fundamentally the result of the good sales in the fiscal year. Also relevant was the increase of MCH$3.616 in inventories.

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

Dec-2012 Dec-2011 Variation MCH$ MCH$ MCH$ % Current Assets 103,050,- 93,040,- 10,010,- 10,76 %Non-Current Assets 34,414,- 30,784,- 3,630,- 11,79 %Total Assets 137,464,- 123,824,- 13,640,- 11,02 %

Non-Current Assets

Of note in the non-current assets was the increase of MCH$2.625 in property, plant and equipment, the result of the heavy rise in investment in stores, mostly in the last quarter of 2012.

b) Liabilities in millions of pesos or MCH$

Current Liabilities

Current liabilities fell MCH$6,193 because of the reduction in taxes accrued at the close of December 2011 and the payment of bank debt owed for the purchase of merchandise.

Non-Current Liabilities

Non-current liabilities underwent no change except for the restatement of debt due to the variation in the exchange rate for the currency in which the debt is payable and to the reclassification of debt installments expiring in the short term.

Dec-2012 Dec-2011 Variation MCH$ MCH$ MCH$ % Current Liabilities 23,090 29,283 (6,193)- (21.15)%Non-Current Liabilities 2,932 3,107 (175)- (5.63)%Equity 111,442 91,434 20,008 21.88 %Total Liabilities 137,464 123,824 13,640 11.02 %

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

193

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

Equity

Equity as of December 31, 2012 and December 31, 2011 was comprised as follows:

Equity rose a total of MCH$20,008 because of the increase in comprehensive income in the period, which rose 10.35% compared to the previous fiscal year.

The variation in Other Reserves corresponds to conversion differentials for subsidiaries, as follows:

Dec-2012 Dec-2011 Variation MCH$ MCH$ MCH$ % Issued Capital 24,243 24,243 - -%Other Reserves 17,468 17,532 (64)- (0.37)%Retained Earnings 68,708 49,595 19,113 38.54 %Minority Interest 1,023 64 959 1,498.44 %Total Equity 111,442 91,434 20,008 21.88 %

MCH$Forus Colombia S.A. 24PeruForus S.A. (51)-Uruforus S.A. (479)-Pasqualini S.A. 313Elecmetal S.A. 172Quemchi S.A. (32)-Lyfestyle Brands of Colombia (3)-Top Safety S.A. (8)-Total translation differences (64)-

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

c) Ratios

Debt Ratios

Indices de Rentabilidad

The current ratio (current assets/current liabilities) rose compared to the close of the previous fiscal year because bank debt incurred for the purchase of merchandise (letters of credit) fell compared to the financial statements closed as of December 2011. Liabilities decreased because less taxes accrued, which were offset by monthly provisional tax payments. These movements also caused the acid test ratio to rise, which went from 1.96 as of December 2011 to 2.76 at the close of this fiscal year.

The Company’s profit per share rose 11.38% compared to the previous fiscal year.

Unit Dec-2012 Dec-2011 Variation Current Ratio (times) 4.46 3.18 1.28Acid-Test Ratio (times) 2.76 1.96 0.80Debt-to-Equity Ratio (times) 0.23 0.35 (0.12)-Interest Coverage Ratio (times) 76.35 64.19 12.16

Unit Dec-2012 Dec-2011 Variation Per-share profit $ 121.35 109.97 11.38Return on Equity % 28.40 31.11 (2.70)-Return on Sales % 18.37 19.97 (1.60)-Return on Assets % 22.82 22.96 (0.14)-

195

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

Analysis of Statement of Comprehensive Income

Statement of Comprehensive Income (in millions of pesos or MCH$)

The Company’s revenues rose MCH$28,417 compared to the previous fiscal year, which is a rise of 20%. Costs of sale climbed 27.4%, raising the gross margin by 14.9%, which totaled MCH$12,616 in absolute terms.

The Company’s EBITDA increased 12.8% due to the rise in sales and margin in comparison to the previous fiscal year.

Lastly, the fiscal year profit was higher compared to the previous year, totaling a net MCH$2.942, an increase of 10.35%.

Dec-2012 Dec-2011 Variation

MCH$ MCH$ MCH$

Revenues 170,768 142,351 28,417

Cost of Sales (73,455)- (57,654)- (15,801)-

Gross Margin 97,313 84,697 12,616

Other income by function 660 1,512 (852)-

Distribution costs (1,559)- (1,252)- (307)-

Administrative expenses (57,623)- (50,286)- (7,337)-

Other expenses by function (246)- (107)- (139)-

Other earnings (losses) (211)- (380)- 169

Financial income 1,557 813 744

Financial expenses (411)- (443)- 32

Share in earnings (losses) of joint ventures

accounted for by the equity method 172 88 84

Translation differences (1,012)- 582 (1,594)-

Profit (loss) on unit of adjustment (35)- (100)- 65

Pre-tax profit (loss) 38,605 35,124 3,481

Income tax (7,239)- (6,700)- (539)-

Profit (loss) in the period 31,366 28,424 2,942

EBITDA 42,495 37,663 4,832

FORUS S.A. AND SUBSIDIARIESExplanatory Analysis

December 30, 2012 and December 31, 2011

Indirect Cash Flow Analysis

The flow from operating activities fell by MCH$2.834, mainly due to the increase in the Group’s trade receivables compared to the previous fiscal year and the increase in tax payments.

Investing activities varied significantly because of the disbursement for easily convertible investments held by the Company to take advantage of temporary cash surpluses.

The variation in financing activities is mainly the result of payments to finance the purchase of merchandise using bank guarantees or letters of credit.

Market Risk Analysis

The growth in revenues in the last quarter of the year was 9.6% compared to the previous year. For a 24-month period, this growth was 27% (comparing the same quarter in 2011 and 2010).

On the other hand, the exchange rate in the year caused a loss of MCH$654 under the forwards contracted during the year to hedge the 2013 winter season.

Dec-2012 Dec-2011 Variation MCH$ MCH$ MCH$ Flow from Operating Activities 28,694 31,528 (2,834)-Flow from Investing Activities (14,797)- (3,385)- (11,412)-Flow from Financing Activities (19,586)- (15,253)- (4,333)-

197

Sumary Financial Statements of Subsidiaries

FORUS S.A. AND SUBSIDIARIES

December 30, 2012 andDecember 31, 2011

199

Consolidated  Statements  of  Financial  Position

Uruforus  S.A. Forus  Colombia    S.A.S. Perú  Forus    S.A. Topsafety    S.A.K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011ASSETSCurrent  Assets 8.404.477 7.819.178 2.840.476 2.252.063 4.474.565 3.939.577 3.081.270 2.152.427

Non-­‐current  assets 3.114.253 2.492.560 391.960 307.910 2.394.932 2.213.574 633.244 591.505

Total  Assets 11.518.730 10.311.738 3.232.436 2.559.973 6.869.497 6.153.151 3.714.514 2.743.932

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Equity  and  LiabilitiesCurrent  Liabilities 3.863.760 4.136.101 1.293.111 869.691 3.123.235 2.987.272 2.049.398 1.251.711

Non-­‐Current  Liabilities 237.830 286.285 154.383 189.550 6.340

Total  liabilities 4.101.590 4.422.386 1.293.111 869.691 3.277.618 3.176.822 2.055.738 1.251.711Total  equity 7.417.140 5.891.352 1.939.325 1.690.282 3.591.879 2.976.329 1.658.776 1.492.221Total  Equity  and  Liabilities 11.518.730 10.313.738 3.232.436 2.559.973 6.869.497 6.153.151 3.714.514 2.743.932

Statements  of  Comprehensive  Income

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Gross  margin 7.564.489 5.984.733 2.934.907 2.414.107 5.318.792 4.322.716 713.133 225.961

Pre-­‐tax  profit  (loss) 2.399.968 1.951.790 240.434 43.658 1.103.810 756.336 88.957 (246.021)Income  tax  expense (632.419) (423.018) (16.815) (20.426) (436.890) (266.287) 80.656 84.159

Profit  (loss) 1.767.549 1.528.772 223.619 23.232 666.920 490.049 169.613 (161.862)

Statements  of  Cash  Flow

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Net  cash  flows  from  (used  in)  operating  activities 1.757.231 (192.076) 536.979 1.466.633 586.924 1.364.716 (593.440) (623.535)

Net  cash  flows  from  (used  in)  investing  activities (1.304.956) (1.378.446) (864.349) 112.447 (634.880) (188.354) 9.488 (115.612)

Net  cash  flows  from  (used  in)  finance  activities (489.292) 1.804.329 144.612 (1.316.354) (40.783) (721.771) 647.259 594.343

Increase  (decrease)  in  cash  and  cash  equivalent  before  the  effect  of  changes  in  the  exchange  rate (44.035) 26.564 (35.688)

Net  increase  (decrease)  in  cash  and  cash  equivalent (81.052) 260.371 (182.758) 262.726 (124.427) 454.591 63.307 (144.804)Cash  and  cash  equivalent  at  the  start  of  the  period 503.255 242.884 490.116 227.390 689.089 234.498 138.085 282.889

Cash  and  cash  equivalent  at  the  end  of  the  period 422.203 503.255 307.358 490.116 564.662 689.089 201.392 138.085

Statements  of  Changes  in  Net  Equity

Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011K$ Total  changes  in  Net  Equity Total  changes  in  Net  Equity Total  changes  in  Net  Equity Total  changes  in  Net  Equity

Starting  balance 4.381.884 2.570.833 1.690.282 1.529.510 2.976.329 2.106.840 1.492.221 1.715.534

Changes  in  Equity 3.035.256 3.320.519 249.043 160.772 615.550 869.489 166.555 (223.313)

Ending  Balance  actual  period 7.417.140 5.891.352 1.939.325 1.690.282 3.591.879 2.976.329 1.658.776 1.492.221

Consolidated  Statements  of  Financial  Position

Uruforus  S.A. Forus  Colombia    S.A.S. Perú  Forus    S.A. Topsafety    S.A.K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011ASSETSCurrent  Assets 8.404.477 7.819.178 2.840.476 2.252.063 4.474.565 3.939.577 3.081.270 2.152.427

Non-­‐current  assets 3.114.253 2.492.560 391.960 307.910 2.394.932 2.213.574 633.244 591.505

Total  Assets 11.518.730 10.311.738 3.232.436 2.559.973 6.869.497 6.153.151 3.714.514 2.743.932

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Equity  and  LiabilitiesCurrent  Liabilities 3.863.760 4.136.101 1.293.111 869.691 3.123.235 2.987.272 2.049.398 1.251.711

Non-­‐Current  Liabilities 237.830 286.285 154.383 189.550 6.340

Total  liabilities 4.101.590 4.422.386 1.293.111 869.691 3.277.618 3.176.822 2.055.738 1.251.711Total  equity 7.417.140 5.891.352 1.939.325 1.690.282 3.591.879 2.976.329 1.658.776 1.492.221Total  Equity  and  Liabilities 11.518.730 10.313.738 3.232.436 2.559.973 6.869.497 6.153.151 3.714.514 2.743.932

Statements  of  Comprehensive  Income

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Gross  margin 7.564.489 5.984.733 2.934.907 2.414.107 5.318.792 4.322.716 713.133 225.961

Pre-­‐tax  profit  (loss) 2.399.968 1.951.790 240.434 43.658 1.103.810 756.336 88.957 (246.021)Income  tax  expense (632.419) (423.018) (16.815) (20.426) (436.890) (266.287) 80.656 84.159

Profit  (loss) 1.767.549 1.528.772 223.619 23.232 666.920 490.049 169.613 (161.862)

Statements  of  Cash  Flow

K$ Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011Net  cash  flows  from  (used  in)  operating  activities 1.757.231 (192.076) 536.979 1.466.633 586.924 1.364.716 (593.440) (623.535)

Net  cash  flows  from  (used  in)  investing  activities (1.304.956) (1.378.446) (864.349) 112.447 (634.880) (188.354) 9.488 (115.612)

Net  cash  flows  from  (used  in)  finance  activities (489.292) 1.804.329 144.612 (1.316.354) (40.783) (721.771) 647.259 594.343

Increase  (decrease)  in  cash  and  cash  equivalent  before  the  effect  of  changes  in  the  exchange  rate (44.035) 26.564 (35.688)

Net  increase  (decrease)  in  cash  and  cash  equivalent (81.052) 260.371 (182.758) 262.726 (124.427) 454.591 63.307 (144.804)Cash  and  cash  equivalent  at  the  start  of  the  period 503.255 242.884 490.116 227.390 689.089 234.498 138.085 282.889

Cash  and  cash  equivalent  at  the  end  of  the  period 422.203 503.255 307.358 490.116 564.662 689.089 201.392 138.085

Statements  of  Changes  in  Net  Equity

Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011 Dec  31,  2012 Dec  31,  2011K$ Total  changes  in  Net  Equity Total  changes  in  Net  Equity Total  changes  in  Net  Equity Total  changes  in  Net  Equity

Starting  balance 4.381.884 2.570.833 1.690.282 1.529.510 2.976.329 2.106.840 1.492.221 1.715.534

Changes  in  Equity 3.035.256 3.320.519 249.043 160.772 615.550 869.489 166.555 (223.313)

Ending  Balance  actual  period 7.417.140 5.891.352 1.939.325 1.690.282 3.591.879 2.976.329 1.658.776 1.492.221

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