investor relations 3q 2018

Investor Relations3Q 2018

History

1

“Leading Authentic Sports Brand Inspired by

the Style, Elegance and Passion of our Italian Heritage”

Founded by FILA

brothers in Biella, Italy

1911

1973

1991

2005

2007

2010

2011

First sports apparel

market (Tennis)

Established FILA Korea

FILA Korea MBO

FILA Korea acquired FILA

trademark and global assets

(USD 400M LBO)

FILA Korea IPO (081660:KS)

FILA Korea & Mirae Asset Global

Investments Consortium acquired

Acushnet Holdings Corp. (USD 1.2B

LBO)

2016

FILA Korea became a controlling

shareholder of Acushnet Holdings

Corp.

2

100%100%

100%

100%

15%

100%

GLBH Holdings(Acquisition Vehicle)

FILA Luxembourg(Trademark Owner)

FILA Korea(Controlling Shareholder)

Acushnet Holdings

Corp.

Full Prospect(JV with ANTA)

FILA Sport HK(In-house Sourcing)

FILA USA(USA, Canada, Mexico)

40 Licensees(Global Royalty)

Group Structure

Magnus Holdings

53%

FILA Holdings

(Holding Company)

20%

Brand renewal in Korea

Distribution channel

re-structuring process

Cost-competitiveness through

product sourcing strategy

Various collaboration

reflecting global Heritage

trends

Expanding into upper

channels of distribution in

the US:

Foot Locker, Bloomingdale’s,

Neiman Marcus etc.

Successful product

collaborations including Fendi,

Urban Outfitters, Baja East,

Gosha Rubchinskiy, Marion

Bartoli (LOVE FILA by Marion

Bartoli), Nas (Nas x

Ghostbusters footwear

collection, Mountain Dew,

Staples etc.)

Successfully established FILA® as

leading high-end lifestyle casual

brand in China

Collaborations with Anna Sui, Jason

Wu and Ginny Hilfiger etc.

Led by Anta, a leading sports apparel

company in China, FILA® has been

expanding into major markets across

China, Hong Kong, Macau and

Singapore

Total of 40 licensees

3

FILA – A Leading Authentic Global Sports Brand

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjppLDm0r_NAhVKnZQKHawGDvIQjRwIBw&url=http://www.anta.com/&psig=AFQjCNF9zdiEi4USNnZFHplGr27W60zAYQ&ust=1466822771190034

FILA USA

FILA Licensee

Full Prospect

FILA Korea

FILA Group Business Overview

North America (U.S.A., Canada, Mexico)

Footwear based wholesale distributor

Apparel and footwear based retail and wholesale distributor

Total number of stores: 571 (as of 3QE 2018)

Multi-category: FILA, FILA KIDS, FILA UNDERWEAR, FILA GOLF

Joint venture (15% ownership) with ANTA Sports from 2009.

Offering premium sports & lifestyle products in China, Hong Kong, Macau, and Singapore

Contributes 3% of its wholesale revenue as Design Service Fee to FILA Korea

Total 40 licensees in Asia, North America, South America and EMEA

Revenue and profit contribution from licensee partners that operate the FILA branded

products globally

Direct

Indirect

4

Acushnet Hold.

Magnus Holdings Co., Ltd., a wholly-owned subsidiary of Fila Korea Co., Ltd., or Fila

Korea, owns approximately 53% of Acushnet Holdings Corp. as a controlling shareholder.

Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products

worldwide. The company operates through four segments: Titleist Golf Balls, Titleist Golf

Clubs, Titleist Golf Gear, and FootJoy Golf Wear.

Owned brands: Titleist, FootJoy, Vokey, Scotty Cameron, Pinnacle

5

3 months (Jul. - Sep.) ended 9 months (Jan. - Sep.) ended

[Unit: KRW mn]

3Q 2016 3Q 2017 Variance (%) 3Q 2018 Variance (%) YTD 2016 YTD 2017 Variance(%) YTD 2018 Variance(%)

Revenue 175,537 569,274 224.3% 725,878 27.5% 552,967 1,915,842 246.5% 2,192,965 14.5%

Gross Profit 74,830 277,280 270.5% 353,861 27.6% 246,077 936,485 280.6% 1,100,152 17.5%

G.P.(%) 42.6% 48.7% 6.1%p 48.7% 0.0%p 44.5% 48.9% 4.4%p 50.2% 1.3%p

Operating Profit 6,226 35,570 471.3% 73,913 107.8% 37,337 166,013 344.6% 274,499 65.3%

O.P.(%) 3.5% 6.2% 2.7%p 10.2% 3.9%p 6.8% 8.7% 1.9%p 12.5% 3.9%p

Net Income (69,536) 20,683 N/A 45,302 119.0% (46,187) 92,981 N/A 206,177 121.7%

Consolidated Financial Summary

Consolidated Financial Summary (3Q Only)

6

[Unit: KRW mn]

175,537

6,226

(69,536)

569,274

35,570 20,683

725,878

73,91345,302

Revenue OP NI

3Q 2016 3Q 2017 3Q 2018

3.5%

6.2%

10.2%

3Q 2016 3Q 2017 3Q 2018

OPM

Consolidated Financial Summary (YTD)

7

[Unit: KRW mn]

967,128

11,838

311,126

2,530,324

217,466108,110

2,192,965

274,499 206,177

Revenue OP NI

FY 2016 FY 2017 YTD 3Q 2018

1.2%

8.6%

12.5%

FY 2016 FY 2017 YTD 3Q 2018

OPM

FILA USA

FILA Licensee

Full Prospect

FILA Korea












products globally

Direct

Indirect

8

Acushnet Hold.








[Unit: USD K]


Design Service Fee Income 1,628 2,293 40.8% 4,567 99.2% 4,810 6,785 41.1% 13,923 105.2%

FILA Korea Domestic Financial Summary

9


[Unit: KRW mn]


Revenue 72,401 79,039 9.2% 133,548 69.0% 223,911 240,627 7.5% 367,691 52.8%

Gross Profit 34,661 45,130 30.2% 79,294 75.7% 116,672 135,901 16.5% 217,641 60.1%

G.P.(%) 47.9% 57.1% 9.2%p 59.4% 2.3%p 52.1% 56.5% 4.4%p 59.2% 2.7%p

Operating Profit (9,584) 461 N/A 14,966 3,145.4% (17,413) (2,870) N/A 41,689 N/A

O.P.(%) (13.2%) 0.6% N/A 11.2% 10.6%p (7.8%) (1.2%) N/A 11.3% N/A

Net Income (18,679) (1,542) N/A 18,440 N/A (22,655) (4,813) N/A 48,541 N/A

* DSF (Design Service Fee) from Full prospect (JV with Anta Sports) is included

Full Prospect Design Service Fee Income Summary

10

FILA Products Displayed at the Multi-Brand Stores

9

FILA Domestic Products

10

FILA USA

FILA Korea







12

FILA Licensee

Full Prospect Joint venture (15% ownership) with ANTA Sports from 2009.





products globally

Direct

Indirect

Acushnet Hold.







FILA USA Consolidated Financial Summary

13


[Unit: USD K]


Revenue 75,237 67,178 (10.7%) 110,220 64.1% 237,100 212,139 (10.5%) 282,943 33.4%

Gross Profit 22,892 20,324 (11.2%) 35,641 75.4% 74,373 62,740 (15.6%) 89,175 42.1%

G.P.(%) 30.4% 30.3% (0.2%)p 32.3% 2.1%p 31.4% 29.6% (1.8%)p 31.5% 1.9%p

Operating Profit 4,494 2,392 (46.8%) 8,924 273.1% 15,750 3,081 (93.9%) 17,030 452.8%

O.P.(%) 6.0% 3.6% (2.4%)p 8.1% 4.5%p 6.6% 1.5% (5.2%)p 6.0% 4.6%p

Net Income 2,511 1,425 (43.2%) 6,407 349.5% 8,843 1,667 (81.2%) 11,426 585.6%

FILA USA Products

13

FILA Licensee












products globally

Indirect

15







FILA USA

FILA Korea

Full Prospect

Direct

Acushnet Hold.

FILA Global Royalty Summary

16


[Unit: USD K]


Asia 2,444 2,614 7.0% 3,601 37.8% 7,465 8,729 16.9% 10,942 25.4%

North America 2,344 1,417 (39.5%) 2,252 58.9% 5,584 4,572 (18.1%) 5,237 14.5%

South America 456 539 18.2% 676 25.4% 562 1,253 123.0% 2,128 69.8%

EMEA 3,976 4,387 10.3% 7,481 70.5% 10,573 11,765 11.3% 18,263 55.2%

Category 383 373 (2.6%) 377 1.1% 1,342 1,266 (5.7%) 1,374 8.5%

Total (Adjusted) 9,546 9,291 (2.7%) 14,344 54.4% 25,343 27,476 8.4% 37,809 37.6%

17

Global License Structure (40 licensees)

Global License Business

License period is 5 years (10 years for master licensees)

Based on the wholesale revenue from each licensee

On average, 6-7% of FILA’s wholesale revenue generated from each licensee

Each licensee has minimum guaranteed royalty (MGR) based

on the forecasted revenue

Semi-annual Global Collaboration Meetings (GCM) held to set broad, global

strategic guidelines among all licensees

FILA Luxembourg

(Trademark owner)

EMEASouth

AmericaAsia

Global

Product

10 regional

licensees

11 regional

licensees

1 master

licensee

6 category

licensee

North

America

1 master

licensees

11 regional

licensees

General License Conditions

Disclaimer

18

This document includes information provided for the purpose of helping to understand the business, strategies, and financial situation of FILA KOREA Ltd. (hereinafter

referred to as “FILA”) and its group companies. It was not created to solicit investors to buy or sell FILA's stock. The uses of this document are advised to make their own

investment decisions and responsibility. This document has been prepared for presentation, illustration and discussion purpose only and is not legally binding.

Investment involves risk. Past performance figures are not indicative of future performance. Please carefully read through the documents and seek independent professional

advice before you make any investment decision. FILA has made every effort to ensure the accuracy of the information contained in this document. However, FILA does not

guarantee the appropriateness, accuracy, usefulness or any other matter whatsoever regarding the information. Regardless of the reason, FILA assumes no responsibility,

whatsoever, for any loss or damages resulting from changes, suspension or deletion of information contained on the document, or from the unauthorized alteration of said

information by a third party, or for damage resulting from the downloading or the use of the data.

The information described in this document may contain forward-looking statements concerning the future performance excluding the past and present fact. These forward-

looking statements contain risks and uncertainties, and do not guarantee future performance. Please note that forward-looking statements may differ from actual results

depending on changes in economic status, market trends and tax and the other systems. Please note that this document may be discontinued or terminated and that the

contents may be altered without advance notice. In addition, this document may not be readily accessible at certain times due to internal or external circumstances. It should

be recognized in advance that FILA assumes no responsibility for any trouble, loss, or damage caused thereby.

investor relations 3q 2018

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