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
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
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
8
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
3 months (Jul. - Sep.) ended 9 months (Jan. - Sep.) ended
[Unit: USD K]
3Q 2016 3Q 2017 Variance (%) 3Q 2018 Variance (%) YTD 2016 YTD 2017 Variance(%) YTD 2018 Variance(%)
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
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 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
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
12
FILA Licensee
Full Prospect 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
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
FILA USA Consolidated Financial Summary
13
3 months (Jul. - Sep.) ended 9 months (Jan. - Sep.) ended
[Unit: USD K]
3Q 2016 3Q 2017 Variance (%) 3Q 2018 Variance (%) YTD 2016 YTD 2017 Variance(%) YTD 2018 Variance(%)
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
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
Indirect
15
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
FILA USA
FILA Korea
Full Prospect
Direct
Acushnet Hold.
FILA Global Royalty Summary
16
3 months (Jul. - Sep.) ended 9 months (Jan. - Sep.) ended
[Unit: USD K]
3Q 2016 3Q 2017 Variance (%) 3Q 2018 Variance (%) YTD 2016 YTD 2017 Variance(%) YTD 2018 Variance(%)
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.