Fila Holdings Decides on Treasury Stock Acquisition and Cancellation to "Enhance Shareholder Value"

Cancellation of 26.1 Billion Treasury Shares on the 28th of This Month
Acquisition of Treasury Shares Within 50 Billion Won Limit This Year

Fila Holdings announced plans for treasury stock cancellation and acquisition, expressing its commitment to shareholder returns.

According to the Financial Supervisory Service's electronic disclosure system on the 21st, Fila Holdings plans to cancel 656,383 common shares worth approximately 26.1 billion KRW that it currently holds. This represents about 1.1% of the total issued shares, with the cancellation scheduled for the 28th.

On the same day, as part of its shareholder return policy "Winning Together," Fila Holdings announced it will acquire treasury stock worth 50 billion KRW by the end of the year. Initially, it plans to acquire treasury stock worth 10 billion KRW through a treasury stock trust contract by September 20. The contracting securities firm is Hana Securities. For the remaining amount, the company intends to acquire shares through board resolutions on the remaining funds throughout the year.

Fila Holdings also decided on a dividend of 750 KRW per share for last year's settlement. Despite receiving a poor performance report due to a recession that dampened consumer sentiment, the dividend was set at the same 750 KRW as the previous year. The total dividend amount is 45.1 billion KRW. Fila Holdings' sales last year were 4.0066 trillion KRW, and operating profit was 303.5 billion KRW, down 5.1% and 30.2% respectively compared to the previous year. Performance growth was limited due to subsidiary brand renewals and inventory clearance.

Lee Ho-yeon, CFO (Chief Financial Officer) of Fila Holdings, stated, “We will fulfill our role as a shareholder-friendly company by strengthening various shareholder return policies this year.”