Investor Relations 3Q 2016

Transcription

1 Investor Relations 3Q 2016

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 purchased FILA trademark and global assets (USD 400M LBO) FILA Korea & Mirae Asset Global Investments Consortium acquired Acushnet Company (USD 1.2B LBO) First sports apparel market (Tennis) FILA Korea MBO FILA Korea IPO (081660:KS) 1

3 Group Structure Magnus Holdings 100% FILA Korea (Controlling Shareholder) 51% GLBH Korea *59.1% (Pre-diluted base) 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) * On diluted base, Magnus Holdings owns 33.1% of Acushnet Holdings Corp. as of September 30, 2016(common stocks) 2

4 FILA Group Business Overview Direct FILA Korea FILA USA Apparel and footwear based retail distributor Total number of stores: 645 (as of September 30, 2016) Multi-brand: FILA, FILA GOLF, FILA KIDS, FILA UNDERWEAR FILA brand renewal began in early 2016 by overhauling its product, distribution and marketing with a new management team North America (U.S.A., Canada, Mexico) Footwear based wholesale distributor Despite the competitive market condition, FILA USA continued to grow both the revenue and operating profit on a dollar basis since its turnaround in 2010 Indirect FILA Licensee FILA China Total 33 licensees in EMEA, North America, Latin America and Asia Stable contribution by each regional licensees Joint venture with ANTA Sports from Offering premium sports & lifestyle products in China, Hong Kong, and Macau Contributes 3% of its revenue as Design Service Fee to FILA Fast growth in revenue since its launching year (CAGR 43%: ) 3

5 FILA A Leading Authentic Global Sports Brand Expanding into upper channels of distribution in the US: Foot Locker, Bloo mingdale s, Macy s, Nordstro m and Neiman Marcus Recently launched brand renewal in Korea Product line-up overhaul to focus on performance products Successful product collaborations including Urban Outfitters, Baja East, Gosha Rubchinskiy, Marion Bartoli (LOVE FILA by Marion Bartoli) and Nas (Nas x Ghostbusters footwear collection) 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 9 regional licensees North America 5 regional licensees EMEA 1 master licensees 8 regional licensees South America 1 master licensee Global Product 9 global product 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 5

7 Consolidated Financial Summary 3Q Revenue Breakdown / OPM (Consol.) (KRW M) 3Q YTD Revenue Breakdown / OPM (Consol.) (KRW M) FILA Korea FILA USA Royalty & Others OPM FILA Korea FILA USA Royalty & Others OPM 189, , , , , ,967 10% 16% 11% 13% 14% 10% 44% 45% 48% 38% 44% 50% 46% 39% 41% 49% 42% 40% 11.0% 9.8% 3.5% 3Q Q Q % 11.8% 6.8% 3Q YTD Q YTD Q YTD

8 FILA Korea From 2012 Korean economic turmoil created rough environment for many consumer businesses and FILA Korea has started brand restructuring to overcome economic recession in early Q Revenue Breakdown / OPM (KRW M) (KRW M) 3Q YTD Revenue Breakdown / OPM Revenue OPM Revenue OPM 285,259 87, ,133 76,485 72, , % deficit(-2.2%) deficit(-13.2%) 4.6% 1.1% deficit(-7.8%) 3Q Q Q Q YTD Q YTD Q YTD

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 3Q Revenue Breakdown / OPM (USD K) (USD K) 3Q YTD Revenue Breakdown / OPM Revenue OPM Revenue OPM 75,984 75, , ,100 70, , % 5.4% 6.0% 3Q Q Q % 7.1% 6.7% 3Q YTD Q YTD Q YTD

10 Global Royalty Stable revenue and profit contribution from 33 licensee partners that operate the FILA branded products globally 3Q Royalty Breakdown (USD K) (USD K) 3Q YTD Royalty Breakdown ASIA N. America S. America EMEA Others ASIA N. America S. America EMEA Others 9,898 2% 9,219 9,220 3% 4% 29,119 3% 26,770 4% 24,365 39% 39% 43% 39% 38% 6% 43% 9% 26% 6% 30% 5% 25% 8% 26% 8% 27% 2% 23% 23% 22% 22% 24% 23% 26% 3Q Q Q Q YTD Q YTD Q YTD

11 Appendix Consolidated Balance Sheet (K-IFRS) (KRW M) 3Q 2016 FY 2015 FY 2014 Assets 873, ,932 1,043,405 Current Assets 380, , ,767 Cash and cash equivalents 54,927 46,938 60,093 Trade and other receivables 107, , ,196 Inventories 207, , ,846 Other current assets 10,174 13,140 17,632 Non-current Assets 493, , ,638 Property and equipment 57,948 44,531 39,523 Intangible assets 373, , ,498 Other non-current assets 61, , ,617 Liabilities 504, , ,018 Current Liabilities 255, , ,260 Trade and other payables 94, ,402 92,292 Borrowings 144, ,037 86,486 Other current liabilities 16,599 20,190 18,482 Non-current Liabilities 248, , ,758 Borrowings 125,980 92, ,747 Bonds 70,749 75,363 - Other non-current liabilities 51,585 60,265 71,011 Total Equity 369, , ,387 10

12 Appendix Consolidated Profit & Loss Summary (KRW M) 1Q Q Q Q 2014 FY Q Q Q Q 2015 FY Q Q Q 2016 YTD 2016 Revenue 199, , , , , , , , , , , , , ,968 Gross Profit 95, ,454 85,714 95, ,996 96,541 97,871 86,219 88, ,878 71,985 99,263 74, ,078 G.P.(%) 48.00% 51.40% 45.30% 44.60% 47.30% 44.90% 48.80% 43.90% 43.40% 45.20% 42.80% 47.44% 42.63% 44.50% Operating Profit 29,603 28,564 20,864 14,518 93,549 27,657 25,200 19,158 8,546 80,562 6,305 24,807 6,226 37,338 O.P.(%) 14.90% 14.60% 11.00% 6.80% 11.70% 12.90% 12.60% 9.80% 4.20% 9.90% 3.75% 11.86% 3.55% 6.75% Net Income 20,827 29,457 21,390 (12,168) 57,590 (30,609) (31,692) (19,883) (53,144) (133,328) 7,340 16,009 (69,536) (46,187) FILA Korea Profit & Loss Summary (KRW M) 1Q Q Q Q 2014 FY Q Q Q Q 2015 FY Q Q Q 2016 YTD 2016 Revenue 89, ,562 87, , ,490 79, ,484 76,485 90, ,805 65,458 86,052 72, ,911 Gross Profit 50,919 64,918 47,317 57, ,669 45,078 58,391 42,080 47, ,692 31,459 50,553 34, ,672 G.P.(%) 57.10% 59.80% 54.00% 51.20% 55.50% 56.90% 58.10% 55.00% 52.00% 55.60% 48.06% 58.75% 47.87% 52.11% Operating Profit 2,899 8,605 1,696 (1,345) 11,853 (550) 4,937 (1,670) (6,738) (4,020) (8,057) 229 (9,584) (17,412) O.P.(%) 3.30% 7.90% 1.90% N/A 3.00% N/A 4.90% N/A N/A N/A N/A 0.27% N/A N/A Net Income 2,590 2,954 2,505 1,556 9,603 (577) 3, (3,826) (430) (7,523) 3,547 (18,679) (22,655) 11

13 Appendix FILA USA Consolidated Profit & Loss Summary (USD K) 1Q Q Q Q 2014 FY Q Q Q Q 2015 FY Q Q Q 2016 YTD 2016 Revenue 77,995 63,942 70,855 66, ,231 94,957 71,310 75,984 78, ,990 71,436 90,427 75, ,100 Gross Profit 26,336 18,379 20,916 16,851 82,482 29,892 20,054 22,618 21,842 94,406 22,529 28,951 22,892 74,372 G.P.(%) 33.80% 28.70% 29.50% 25.40% 29.50% 31.50% 28.10% 29.80% 27.70% 29.40% 31.54% 32.02% 30.43% 31.37% Operating Profit 8,537 3,796 4, ,225 8,833 4,299 4,130 2,682 19,944 4,495 6,804 4,542 15,841 O.P.(%) 10.90% 5.90% 5.90% 1.10% 6.20% 9.30% 6.00% 5.40% 3.40% 6.20% 6.29% 7.52% 6.04% 6.68% Net Income 4,851 1,991 2,163 (223) 8,782 5,164 2,375 1,945 1,406 10,890 2,409 3,924 2,508 8,841 Global Royalty Summary (USD K) 1Q Q Q Q 2014 FY Q Q Q Q 2015 FY Q Q Q 2016 YTD 2016 FILA Korea 1,862 2,433 1,967 2,371 8,634 1,508 1,898 1,386 1,616 6,408 1,148 1,540 1,342 4,030 FILA Subsidiary 4,871 2,390 2,645 1,161 11,070 5,417 2,638 3,176 1,558 12,927 2,465 5,411 1,971 9,847 Asia 2,315 2,244 2,314 2,513 9,384 2,110 2,133 2,027 3,206 9,478 2,118 2,128 2,057 6,303 North America 2,195 2,821 2,586 2,905 10,506 2,170 2,223 2,749 2,303 9,427 1,279 1,961 2,346 5,586 South America , , EMEA 3,642 3,799 3,901 3,406 14,751 3,227 3,363 3,553 3,504 13,645 3,243 3,354 3,977 10,574 Category , , ,343 Total (Adjusted) 15,902 14,875 14,510 13,474 58,765 15,483 13,528 13,800 13,147 56,078 10,495 15,217 12,533 38,245 9,169 10,053 9,898 9,941 39,061 8,558 8,992 9,219 9,973 36,743 6,882 8,266 9,220 24,368 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