"Strengthening Shareholder Return Policy" FILA Holdings to Pursue First Special Dividend Since Establishment

Specific Dividend Amount and Payment Timing to Be Decided and Announced Later Through the Board of Directors
Gradual Increase in Annual Dividend Payout Ratio Based on Controlling Shareholder Net Income
Plan to Use Up to 600 Billion KRW for Shareholder Returns Over the Next 5 Years

[Asia Economy Reporter Koo Eun-mo] FILA Holdings is taking a shareholder-friendly step by implementing a special dividend for the first time since its founding.

FILA Holdings announced on the 14th through a public disclosure that it will close the shareholder registry for the special dividend and set the record date for the special dividend as the 30th of this month in accordance with Article 59 of its Articles of Incorporation.

A special dividend is a dividend paid during the fiscal year rather than after the settlement of accounts. This decision was made as part of the shareholder return policy emphasized in FILA Holdings' global five-year strategic plan "WINNING TOGETHER," announced earlier this year to stakeholders worldwide. The specific dividend amount and payment schedule will be decided later by the board of directors. Accordingly, shareholders holding FILA Holdings stock at the end of this month will be entitled to receive the special dividend.

In the global five-year strategy "WINNING TOGETHER," FILA Holdings emphasizes its commitment to responsible management through an active shareholder return policy. In this regard, based on stable cash flow, the dividend payout ratio, which was about 8.0% in 2020, was significantly increased to about 25.6% last year and paid out. Going forward, the company plans to gradually increase the annual dividend payout ratio based on controlling shareholders' net income and utilize up to approximately KRW 600 billion for shareholder returns over the next five years. FILA Holdings intends to continue efforts to enhance shareholder value by actively sharing investment performance with shareholders and creating a stable, long-term investment environment.

A FILA Holdings official stated, "This special dividend stems from the management's strong confidence in the company's growth potential and its commitment to executing the global mid-to-long-term strategy and shareholder-friendly policies." He added, "We will continue to carry out various activities to enhance shareholder value and build trust with shareholders."