FILA Korea Earnings Release. Investor Relations 3Q 2015

Transcription

1 FILA Korea Earnings Release Investor Relations 3Q 2015

2 Company Overview Brand Mission To be the leading authentic sport brand inspired by the style, elegance and passion of our Italian heritage Brand History Founded by FILA brothers in Biella, Italy 1973 Explored sport apparel market in Tennis (Bjorn Borg) 1991 Established FILA Korea as a footwear sourcing office 2005 FILA Korea MBO from SBI Holdings 2007 FILA Korea purchased FILA trademark and global assets ($400mn LBO) 2010 FILA Korea IPO (081660:KS) 2011 FILA Korea & Mirae Asset Global Investments Consortium acquired Acushnet Company ($1.225bn LBO) 1

3 Group Structure Alexandria Holdings (Acushnet Company) 51% (25%) 51% FILA Korea (Controlling Shareholder) GLBH Korea (DIADORA Licensee) 100% GLBH Holdings (Acquisition Vehicle) 100% FILA Luxembourg (Trademark Owner) 15% 100% 100% Full Prospect (JV with ANTA) Licensee (Global Royalty) FILA USA (USA Operation) FILA Sport HK (In-house Sourcing Office) 2

4 Consolidated Summary 3Q Revenue Breakdown 9M YTD Revenue Breakdown FILA Korea FILA USA Royalty & Others OPM(%) 179,348 17% 189, ,383 16% 22% FILA Korea FILA USA Royalty & Others OPM(%) 527,354 15% 584, ,253 15% 18% 33% 38% 39% 31% 36% 40% 50% 46% 39% 54% 49% 42% 12.7% 11.0% 9.8% 14.0% 13.5% 11.8% 3Q Q Q M M M Q Operating Profit Breakdown 9M YTD Operating Profit Breakdown FILA Korea FILA USA Royalty & Others FILA Korea FILA USA Royalty & Others 22,858 20,864 19,158 74,030 79,031 72,015 57% 72% 87% 55% 62% 72% 20% 23% 20% 22% 8% -9% 3Q Q Q % 21% 24% 26% 17% 4% 9M M M

5 FILA Korea Established in 1991 as a FILA global footwear sourcing center and began domestic operation in (100% owned subsidiary by FILA Italy) FILA Korea became stand alone company from SBI Holdings after successful MBO in Continuous expansion in multiple apparel categories to sustain revenue growth and market penetration. (Golf, Kids, Underwear, Outdoor) 3Q Revenue & OPM 9M YTD Revenue & OPM Revenue OPM% Revenue OPM% 89,412 87, , ,258 76, , % 1.9% -2.2% 6.6% 4.6% 1.1% 3Q Q Q M M M

6 FILA USA FILA USA has shown improvement in both sales and profit since its return to profitability in Despite the competitive market conditions in the US, Fila USA continued to grow both the revenue and operating profit on a dollar basis. FILA USA is focused on building a strong platform upon which to elevate the brand value. 3Q Revenue & OPM 9M YTD Revenue & OPM Revenue OPM% 75,984 Revenue OPM% 242,251 70, ,792 60, , % 5.9% 5.4% 8.8% 7.8% 7.1% 3Q Q Q M M M

7 Global Royalty The average royalty rate is between 6%-7% of net sales. Licensees have full responsibility for all operating costs such as product design and development, manufacturing, distribution and marketing. All licensees have an obligation to pay a minimum guaranteed royalty, which is based on revenue forecasted by each licensee. 3Q Royalty Breakdown 9M YTD Royalty Breakdown ASIA N. America S. America EMEA Others ASIA N. America S. America EMEA Others 9,246 2% 9,898 3% 9,219 3% 27,604 2% 29,119 3% 26,770 4% 40% 39% 39% 40% 39% 38% 8% 9% 6% 8% 8% 8% 25% 26% 30% 25% 26% 27% 25% 23% 22% 25% 24% 23% 3Q Q Q M M M

8 Acushnet Company Acquisition Structure FILA Korea Mirae Asset Blackstone Neoplux FILA has call option for warrant of Alexandria Holdings BW - $34.6M for 5 years totaling $173M KDB USD 819M Alexandria Holdings USD 725M USD 500M SPC Merged USD 1.225B Acushnet Company Fortune Brands IPO FILA Korea Common Stock RCPS Mirae Asset CB BW RCPS Blackstone CB BW RCPS Neoplux CB BW Total Equity CS + RCPS Q Revenue & OPM 9M YTD Revenue & OPM Revenue OPM% Revenue OPM% 316, , ,961 1,182,847 1,212,620 1,182, % 1.7% 4.0% 3Q Q Q % 9.6% 10.3% 9M M M

9 Appendix Consolidated Balance Sheet (K-IFRS) 3Q 2015 FY 2014 FY 2013 Asset 1,012,788 1,035, ,356 Current Assets 418, , ,280 Cash and cash equivalents 59,496 60,093 60,741 Trade and other receivables 112, ,196 87,220 Inventories 231, , ,920 Other current assets 14,491 17,632 23,399 Non-current assets 594, , ,076 Property and equipment 42,906 39,523 41,901 Intangible assets 406, , ,723 Other non-current assets 145, , ,452 Liabilities 507, , ,349 Current liabilities 265, , ,758 Trade and other payables 117,077 92, ,688 Borrowings 129,401 86,486 91,869 Other current liabilities 19,170 18,482 17,191 Non-current liabilities 241, , Borrowings 96, , ,739 Bonds 76, Other non-current liabilities 68,683 71,011 79,852 Total Equity 505, , ,007 8

10 Appendix Consolidated Profit & Loss Summary 1Q Q Q Q 2012 FY Q Q Q Q 2013 FY Q Q Q Q 2014 FY Q Q Q 2015 Revenue 171, , , , , , , , , , , , , , , , , ,383 Gross Profit 88,747 96,102 70,948 92, ,190 85,143 97,746 82, , ,917 95, ,454 85,715 95, ,996 96,541 97,871 86,219 G.P.(%) 51.70% 55.80% 49.10% 50.80% 51.90% 49.90% 55.10% 46.20% 49.40% 50.10% 48.00% 51.40% 45.30% 44.60% 47.30% 44.90% 48.80% 43.90% Operating Profit 24,872 26,578 16,057 23,936 91,443 21,706 29,466 22,858 24,099 98,129 29,603 28,564 20,864 14,518 93,549 27,657 25,200 19,158 O.P.(%) 14.50% 15.40% 11.10% 13.20% 13.60% 12.70% 16.60% 12.70% 11.50% 13.30% 14.90% 14.60% 11.00% 6.80% 11.70% 12.90% 12.60% 9.80% Net Income 42,264 39,206 33,681 7, ,281 13,880 37,479 (8,468) 53,260 96,151 20,827 29,478 21,370 (11,253) 60,422 (29,420) (31,823) (17,884) FILA Korea Profit & Loss Summary 1Q Q Q Q 2012 FY Q Q Q Q 2013 FY Q Q Q Q 2014 FY Q Q Q 2015 Revenue 96, ,915 87, , ,883 89, ,612 89, , ,154 89, ,562 87, , ,490 79, ,484 76,485 Gross Profit 56,149 71,108 48,569 69, ,100 53,109 64,946 50,617 69, ,569 50,919 64,918 47,316 57, ,669 45,078 58,391 42,080 G.P.(%) 58.30% 61.30% 55.40% 55.80% 57.80% 59.60% 60.40% 56.60% 54.20% 57.50% 57.10% 59.80% 54.00% 51.20% 55.50% 56.90% 58.10% 55.00% Operating P rofit 6,241 12,068 3,148 11,198 32,655 3,720 9,868 5,286 5,848 24,722 2,899 8,605 1,695 (1,347) 11,853 (551) 4,938 (1,670) O.P.(%) 6.50% 10.40% 3.60% 9.00% 7.70% 4.20% 9.20% 5.90% 4.50% 6.00% 3.30% 7.90% 1.90% N/A 3.00% N/A 4.90% N/A Net Income 11,568 9, ,298 28,540 4,243 11,035 (1,071) 2,812 17,019 2,591 2,955 2,504 1,554 9,603 (578) 3,

11 Appendix FILA USA Profit & Loss Summary 1Q Q Q Q 2012 FY Q Q 2013* 3Q Q 2013 FY Q Q Q Q 2014 FY Q Q Q 2015 Revenue 49,980 36,903 35,335 36, ,830 57,545 46,612 60,126 51, ,153 77,995 63,942 70,855 66, ,231 94,957 71,310 75,984 Gross Profit 18,612 11,023 10,564 10,665 50,864 17,886 17,466 16,774 14,695 66,821 26,336 18,379 20,916 16,851 82,482 29,892 20,054 22,618 G.P.(%) 37.20% 29.90% 29.90% 29.10% 32.00% 31.10% 37.50% 27.90% 28.30% 30.90% 33.80% 28.70% 29.50% 25.40% 29.50% 31.50% 28.10% 29.80% Operating P rofit 5,718 1,148 1, ,882 4,833 4,883 4,673 1,512 15,901 8,537 3,796 4, ,225 8,833 4,299 4,130 O.P.(%) 11.40% 3.10% 4.40% 1.20% 5.60% 8.40% 10.50% 7.80% 2.90% 7.40% 10.90% 5.90% 5.90% 1.10% 6.20% 9.30% 6.00% 5.40% Net Income 4, ,077 7,278 13,570 3,948 4,518 3,996 27,976 40,438 4,851 1,991 2,163 (223) 8,782 5,164 2,375 1,945 Note * FILA USA results for 2Q 2013 reflect the reversal of an accrual of $2.735mn made in 2007 for potential customs duties, penalties and interest. Global Royalty Summary Note 1Q Q Q Q 2012 FY Q Q Q Q 2013 FY Q Q Q Q 2014 FY Q Q Q 2015 FILA Korea * 1,924 2, ,739 7,106 1,810 2,127 1,870 2,808 8,615 1,862 2,433 1,967 2,371 8,634 1,508 1,898 1,386 FILA Subsidiary * 3, , ,802 2,869 2,803 2,363 1,244 9,279 4,871 2,390 2,645 1,161 11,070 5,417 2,638 3,176 Asia 2,407 2,352 2,423 2,334 9,516 2,221 2,253 2,273 2,354 9,101 2,315 2,244 2,314 2,513 9,386 2,110 2,133 2,027 North America 1,729 1,773 1,453 2,716 7,671 2,228 2,455 2,315 2,689 9,687 2,194 2,822 2,586 2,905 10,506 2,170 2,224 2,749 South America , , , EMEA 2,213 4,076 2,729 3,308 12,326 3,209 4,041 3,735 3,004 13,989 3,642 3,799 3,901 3,406 14,751 3,227 3,363 3,553 Category , Total 12,633 12,446 8,828 12,524 46,431 13,320 14,647 13,478 12,972 54,417 15,901 14,876 14,510 13,474 58,767 15,483 13,528 13,800 Total (Adjusted) 7,416 9,270 7,572 9,265 33,523 8,641 9,717 9,245 8,920 36,523 9,168 10,053 9,898 9,941 39,063 8,558 8,992 9,219 * Korea and Subsidiary royalty are subject to intercompany adjustment (Eliminated at consolidation) 10

12 Appendix Acushnet Company Profit & Loss Summary 1Q Q Q Q 2012 FY Q Q Q Q 2013 FY Q Q Q Q 2014 FY Q Q Q 2015 Revenue 396, , , ,857 1,451, , , , ,219 1,477, , , , ,347 1,536, , , ,961 Gross Profit 193, , , , , , , , , , , , , , , , , ,420 G.P.(%) 48.90% 48.90% 47.60% 46.40% 48.10% 50.40% 50.60% 49.30% 47.90% 49.70% 49.80% 50.20% 49.40% 48.00% 49.50% 52.10% 53.10% 49.50% Operating Profit 41,926 61,109 9,569 (33,024) 79,580 49,260 55,501 12,686 2, ,225 34,832 59,436 21,881 (7,663) 108,486 50,429 65,745 5,348 O.P.(%) 10.60% 13.50% 3.00% N/A% 5.50% 11.50% 12.60% 4.00% 0.90% 8.10% 8.40% 13.00% 6.40% N/A 7.10% 12.10% 14.70% 1.70% Net Income 20,392 29,519 7 (22,389) 27,529 27,673 32,723 6,212 (19,923) 46,685 17,835 32,873 8,125 (11,240) 47,592 26,000 36,465 (1,846) 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. 11