Fila Holdings Announces Special Dividend of 830 KRW per Share as Part of Shareholder Return Policy

[Asia Economy Reporter Song Seung-yoon] Fila Holdings has decided on a special dividend for the first time since its founding. As part of its shareholder return policy under the global five-year strategy, it plans to utilize up to approximately 600 billion KRW for shareholder returns over the next five years.

According to the industry on the 10th, Fila Holdings decided on a special cash dividend of 830 KRW per share at the board meeting held the day before. This is part of the shareholder return policy emphasized in the global five-year strategy "Winning Together" announced earlier this year. The total amount of the special dividend is approximately 49.87954 billion KRW, and the dividend record date is September 30. The dividend will be paid within 20 days from the board resolution date in accordance with Article 165-12 of the Capital Markets and Financial Investment Services Act.

Fila Holdings paid about 60 billion KRW as a year-end dividend last year. This year, to enhance shareholder value and actively express its commitment to responsible management under the global five-year strategy, it decided to use about 50 billion KRW solely for shareholder returns through the special dividend.

Earlier, through the announcement of Winning Together, Fila Holdings showed its commitment to responsible management based on 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 raised to about 25.6% last year and paid accordingly. Going forward, the company plans to gradually increase the annual dividend payout ratio based on controlling shareholder net income and utilize up to approximately 600 billion KRW for shareholder returns over the next five years.

A Fila Holdings official said, "Although the domestic and international stock markets are in a slump, we decided on this special dividend to boost stock prices and strengthen shareholder-friendly policies," adding, "Based on the management's strong confidence in the company's growth potential, we plan to explore various and effective shareholder return methods to enhance shareholder value in the future."

Meanwhile, Fila Holdings carried out a global organizational restructuring this month to successfully execute the global five-year strategy Winning Together. With the aim of strengthening global organizational capabilities, it plans to deliver unified brand products and marketing worldwide from global hubs.