Fila Holdings "Up to 500 Billion KRW Shareholder Returns by 2027"

Half of Previous Target Achieved,
New Shareholder Return Policy Established

Fila Holdings announced on the 24th that it will undertake shareholder returns totaling 500 billion KRW from this year through 2027. This shareholder return policy is part of Fila Holdings' ongoing efforts to enhance corporate value and strengthen shareholder returns.

Previously, Fila Holdings had committed to utilizing up to 600 billion KRW for shareholder returns by 2026 based on a stable financial structure and to expanding the shareholder return ratio to up to 50% of consolidated controlling shareholder net profit. Since 2022, Fila Holdings has conducted special dividends and treasury stock cancellations, recording a total shareholder return amount of 330.4 billion KRW last year, achieving half of its target amount.

Fila Holdings has extended the period of its new shareholder return plan by one year, from 2026 to 2027. It plans to utilize up to 500 billion KRW for shareholder returns over three years from 2025 to 2027. This represents an additional 200 billion KRW increase in shareholder returns compared to the previous plan. The total shareholder return amount from 2022 to 2027 (a total of six years) is expected to reach up to 800 billion KRW.

Meanwhile, as of last year, Fila Holdings recorded consolidated sales of 4.2687 trillion KRW and operating profit of 360.8 billion KRW, representing increases of 6.5% and 18.9%, respectively, compared to the same period the previous year. This was influenced by sales growth driven by the strong performance of its U.S. golf subsidiary, Acushnet. The one-time inventory costs in Fila's North American business and a favorable exchange rate environment due to a strong dollar also contributed positively.

Looking at the business segments, the Acushnet division recorded sales of 3.3514 trillion KRW, up 7.8% year-on-year, supported by the continued strength of the U.S. golf market and strong sales of Titleist golf balls and clubs. The Fila division achieved sales of 917.3 billion KRW, growing 2.2% during the same period through a diversified business portfolio including joint ventures and licensing businesses.

Lee Ho-yeon, CFO (Chief Financial Officer) of Fila Holdings, stated, “Based on the management's strong commitment to shareholder returns, we have announced a new shareholder return policy. Leveraging stable cash flows generated from solid business segments such as Acushnet and the joint venture Full Prospect, we will continue to faithfully implement policies aimed at enhancing shareholder value.”