Investor Relations 1Q 2017

Transcription

1 Investor Relations 1Q 2017

2 History Leading Authentic Sports Brand Inspired by the Style, Elegance and Passion of our Italian Heritage Founded by FILA brothers in Biella, Italy Established FILA Korea FILA Korea acquired FILA trademark and global assets (USD 400M LBO) FILA Korea & Mirae Asset Global Investments Consortium acquired Acushnet Holdings Corp. (USD 1.2B LBO) First sports apparel market (Tennis) FILA Korea MBO FILA Korea IPO (081660:KS) FILA Korea acquired additional 20% stake of Acushnet Holdings Corp. 1

3 Group Structure Magnus Holdings 100% FILA Korea (Controlling Shareholder) 51% GLBH Korea 53% 100% Acushnet Holdings Corp. GLBH Holdings (Acquisition Vehicle) 100% FILA Luxembourg (Trademark Owner) Licensee (Global Royalty) 15% 100% 100% Full Prospect (JV with ANTA) FILA USA (USA, Canada, Mexico) FILA Sport HK (In-house Sourcing) 2

4 FILA Group Business Overview Direct FILA Korea FILA USA Apparel and footwear based retail and wholesale distributor Total number of stores: 618 (as of 1QE 2017) Multi-brand: FILA, FILA GOLF, FILA KIDS, FILA UNDERWEAR North America (U.S.A., Canada, Mexico) Footwear based wholesale distributor FILA Licensee Total 33 licensees in EMEA, North America, Latin America and Asia Stable revenue and profit contribution from licensee partners that operate the FILA branded products globally Indirect FILA China Joint venture with ANTA Sports from Offering premium sports & lifestyle products in China, Hong Kong, and Macau Contributes 3% of its wholesale revenue as Design Service Fee to FILA Korea Fast growth in revenue since its launching year 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

5 FILA A Leading Authentic Global Sports Brand Expanding into upper channels of distribution in the US: Foot Locker, Bloomingdale s, Macy s, Nord -strom, Neiman Marcus etc. Brand renewal in Korea Distribution channel re-structuring process Various collaboration reflecting Heritage trend Successful product collaborations including 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 Total of 33 licensees Led by Anta, a leading sports apparel company in China, FILA has been expanding into major markets across China, Hong Kong and Macau 4

6 Global License Business Global License Structure (33 licensees) General License Conditions FILA Luxembourg (Trademark owner) License period is 5 years (10 years for master licensees) Based on the wholesale revenue from each licensee Avg. 6-7% of FILA s wholesale revenue Asia 10 regional licensees North America 7 regional licensees EMEA 1 master licensees South America 1 master licensee Global Product 7 category 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 7 regional licensees 5

7 Consolidated Financial Summary 1Q Revenue Breakdown / OPM (Consol.) (KRW M) FILA Korea FILA USA Royalty & Others Acushnet Hold. OPM Annual Revenue Breakdown / OPM (Consol.) (KRW M) FILA Korea FILA USA Royalty & Others Acushnet Hold. OPM 215, , , , , ,128 15% 10% 13% 13% 23% 49% 51% 77% 37% 44% 7% 38% 37% 12.9% 39% 3.8% 3% 10% 7.5% 10% 50% 43% 32% 11.7% 9.9% 1.2% 1Q Q Q 2017 FY 2014 FY 2015 FY

8 FILA Korea From 2012 Korean economic turmoil created rough environment for many consumer businesses and FILA Korea has started brand restructuring in early Q Revenue Breakdown / OPM (KRW M) (KRW M) Annual Revenue Breakdown / OPM Revenue OPM Revenue OPM 79, ,490 65,458 66, , ,179 Deficit -0.7% Deficit -12.3% Deficit -12.9% 3.0% Deficit -1.2% Deficit -10.1% 1Q Q Q 2017 FY 2014 FY 2015 FY

9 FILA F IUSA L A Consolidated U S A (Canada and Mexico) Despite the competitive market conditions in the US, FILA USA is continuously penetrating into the upper distribution channel to build broader brand presence 1Q Revenue Breakdown / OPM (USD K) (USD K) Annual Revenue Breakdown / OPM Revenue OPM Revenue OPM 94, , ,928 71,436 60, , % 6.3% 6.2% 6.2% 6.7% Deficit -5.0% 1Q Q Q 2017 FY 2014 FY 2015 FY

10 Global Royalty Stable revenue and profit contribution from 33 licensee partners that operate the FILA branded products globally 1Q Royalty Breakdown (USD K) (USD K) Annual Royalty Breakdown Asia N.America S.America EMEA Others Asia N.America S.America EMEA Others 8,558 6,882 8,840 4% 7% 5% 2% 3% 4% 38% 37% 39% 46% 39% 43% 4% 8% 20% 25% 19% 26% 30% 25% 39,061 36,743 34,231 3% 4% 5% 38% 37% 41% 8% 7% 3% 27% 26% 22% 25% 31% 34% 24% 26% 29% -3% 1Q Q Q 2017 FY 2014 FY 2015 FY

11 Appendix Consolidated Balance Sheet (K-IFRS) (KRW M) 1Q 2017 FY 2016 FY 2015 Assets 3,252,531 3,384, ,932 Current Assets 1,273,569 1,240, ,786 Cash and cash equivalents 149, ,389 46,938 Trade and other receivables 517, , ,500 Inventories 546, , ,208 Other current assets 58,717 82,178 13,140 Non-current Assets 1,978,962 2,143, ,146 Property and equipment 317, ,467 44,531 Intangible assets 1,503,031 1,626, ,637 Other non-current assets 158, , ,978 Liabilities 2,041,501 2,082, ,830 Current Liabilities 1,182,977 1,193, ,629 Trade and other payables 311, , ,402 Borrowings 711, , ,037 Bonds 72, Other current liabilities 87,788 96,214 20,190 Non-current Liabilities 858, , ,200 Borrowings 581, ,438 92,572 Bonds - 78,083 75,363 Other non-current liabilities 276, ,195 60,265 Total Equity 1,211,030 1,302, ,102 10

12 Appendix Consolidated Profit & Loss Summary (KRW M) FY Q Q Q Q 2015 FY Q Q Q Q 2016 FY Q 2017 Revenue 797, , , , , , , , , , , ,701 Gross Profit 376,996 96,541 97,871 86,219 88, ,878 71,985 99,263 74, , , ,576 G.P.(%) 47.30% 44.90% 48.80% 43.90% 43.40% 45.20% 42.80% 47.44% 42.63% 41.75% 43.32% 47.05% Operating Profit 93,549 27,657 25,200 19,158 8,546 80,562 6,305 24,807 6,225-25,500 11,838 48,882 O.P.(%) 11.70% 12.90% 12.60% 9.80% 4.20% 9.90% 3.75% 11.86% 3.55% -6.16% 1.22% 7.48% Net Income 57,590-30,609-31,692-19,882-51, ,328 7,340 16,009-69, , ,126 25,539 FILA Korea Profit & Loss Summary (KRW M) FY Q Q Q Q 2015 FY Q Q Q Q 2016 FY Q 2017 Revenue 397,490 79, ,484 76,485 90, ,805 65,458 86,052 72,401 82, ,179 66,185 Gross Profit 220,669 45,078 58,391 42,080 47, ,692 31,459 50,553 34,660 40, ,750 32,752 G.P.(%) 55.50% 56.90% 58.10% 55.00% 52.00% 55.60% 48.10% 58.70% 47.90% 48.70% 51.20% 49.49% Operating Profit 11, ,937-1,670-6,738-4,020-8, ,585-13,608-31,021-8,545 O.P.(%) 3.00% -0.69% 4.91% -2.18% -7.43% -1.16% % 0.27% % % % % Net Income 9, , , ,523 3,547-18,679 4,811-17,845-13,008 11

13 Appendix FILA USA Consolidated Profit & Loss Summary (USD K) FY Q Q Q Q 2015 FY Q Q Q Q 2016 FY Q 2017 Revenue 279,231 94,957 71,310 75,984 78, ,990 71,436 90,427 75,237 82, ,928 60,285 Gross Profit 82,482 29,892 20,054 22,618 21,842 94,406 22,529 28,951 22,892 24,137 98,509 17,329 G.P.(%) 29.50% 31.50% 28.10% 29.80% 27.70% 29.40% 31.50% 32.00% 30.40% 29.10% 30.80% 28.75% Operating Profit 17,225 8,833 4,299 4,130 2,682 19,944 4,495 6,804 4,542 5,458 21,299-3,042 O.P.(%) 6.20% 9.30% 6.00% 5.40% 3.40% 6.20% 6.30% 7.50% 6.00% 6.60% 6.70% -5.05% Net Income 8,782 5,164 2,375 1,945 1,406 10,890 2,409 3,924 2,508 2,763 11,604-2,002 Global Royalty Summary (USD K) FY Q Q Q Q 2015 FY Q Q Q Q 2016 YTD Q 2017 FILA Korea 8,634 1,508 1,898 1,386 1,616 6,408 1,148 1,540 1,342 1,420 5, FILA Subsidiary 11,070 5,417 2,638 3,176 1,558 12,927 2,465 5,411 1,971 2,747 12,594 2,079 Asia 9,384 2,110 2,133 2,027 3,206 9,478 2,118 2,128 2,057 3,586 9,886 3,104 North America 10,506 2,170 2,223 2,749 2,303 9,427 1,279 1,961 2,346 2,035 7,621 1,780 South America 3, , , EMEA 14,751 3,227 3,363 3,553 3,504 13,645 3,243 3,354 3,977 3,485 14,057 3,239 Category 1, , , ,765 15,483 13,528 13,800 13,147 56,078 10,495 15,217 12,533 14,036 52,275 11,710 Total (Adjusted) 39,061 8,558 8,992 9,219 9,973 36,743 6,882 8,266 9,220 9,869 34,231 8,840 12

14 Disclaimer This document has been prepared for presentation, illustration and discussion purpose only and is not legally binding. Whilst complied from sources FILA Korea believes to be accurate, no representation, warranty, assurance or inducement express or implied as to the accuracy, completeness or adequacy of freedom from defect of any kind is made, and the division, group or subsidiary or affiliate of FILA Korea which produced this document shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. Nothing herein contains shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. FILA Korea accepts no liability for any loss or damage of any kind resulting out of the unauthorized use of this document. 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. 13