15 September 2017

JD Sports Fashion Plc

Investment in Joint Venture in South Korea

JD Sports Fashion Plc ('JD'), the leading retailer of sports, fashion and outdoor brands, announces that, on 14 September 2017, it entered into a joint venture agreement ('JV') with Shoemarker Inc ('SMK'), a South Korean retailer of footwear, in relation to J&S Partners Inc, a company owned by SMK, which currently trades as the multibranded Hot-T fascia ('Hot-T').

JD has acquired an initial 15% of Hot-T for a cash consideration of approximately £5.5 million. As part of the JV, JD has a call option, exercisable at JD's discretion, to acquire a further 35% share of Hot-T following the finalisation of Hot-T's accounts for its financial year ending 31 December 2017. It is JD's current intention to exercise this option and to re-fascia the Hot-T stores as JD. The exercise of this option would result in the consolidation of the results and net assets of Hot-T into JD's accounts. The business will continue to be operationally run by its existing management team.

Additionally, a limited number of put and call options ('Options') have been entered into by JD and SMK as part of the JV. The value of these Options will be based on the fair value of Hot-T at the time they are exercised and to the extent the exercise of any of these Options are not at the sole discretion of the Company, the fair values have been capped with the consideration payable by either JV partner for the holding of the other partner capped below 25% of JD's Gross Assets.

Information about SMK and Hot-T

SMK operates two retail businesses, Shoemarker (a multi branded footwear retailer in the sporting goods sector of the market) with 114 stores in South Korea and Hot-T (a multibranded footwear retailer in the athletic specialty sector of the market) with 23 stores in South Korea and its own website.

The revenue that relates to Hot-T within the SMK business for the year to 31 December 2016 was KRW 25.5 billion (approximately £17.2 million), with a store EBITDA of KRW 3.0 billion (approximately £2.0 million), gross assets of KRW 42.6 billion (approximately £28.8 million), an operating profit (before exceptional items) of KRW 0.6 billion (approximately £0.4 million) and a loss before tax after exceptional charges, principally relating to one off stock write offs, of KRW 6.2 billion (approximately £4.2 million).

Peter Cowgill, Executive Chairman, commented:

"We are delighted to be entering into this JV which gives JD the opportunity to enter a new market of over 50 million people with a proven operator. This JV will further strengthen JD's global presence."

Enquiries:

JD Sports Fashion Plc                                                                                      Tel:  0161 767 1000

Peter Cowgill, Executive Chairman

Brian Small, Chief Financial Officer

Neil Greenhalgh, Group Financial Controller

MHP Communications                                                                                     Tel:  0203 128 8100

Andrew Jaques

Barnaby Fry

Gina Bell

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulations (EU) No. 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.