Preliminary interim report – 1H FY2017

Kathmandu Holdings Limited

New Zealand Stock Exchange Listing Rules Disclosure
Half Year Report

For the period ending 31 January 2017




Contents
Appendix 1
Media Announcement
Directors’ Report
Interim Report (including Independent Accountants’ Report)

Appendix 1

Kathmandu Holdings Limited

Results for Announcement to the Market

Reporting Period: 6 months to 31 January 2017
Previous Reporting Period: 6 months to 31 January 2016


Amount (000’s)
Percentage
Change
Revenues from ordinary activities $NZ 196,316 0.2%
Profit from ordinary activities after tax
attributable to security holder
$NZ 10,009 6.4%
Net profit attributable to security holder $NZ 10,009 6.4%

Interim Dividend Amount per
Security
Imputed
Amount per
Security
Interim Dividend $NZ 0.04 $NZ 0.01556
Record Date 02 June 2017
Payment Date 16 June 2017

For commentary on the results please refer to the Directors’ Report and Media Announcement
attached.

Financial Information
The Appendix 1 should be read in conjunction with the consolidated interim financial statements
for the 6 months ending 31 January 2017 contained in the Interim Report.

Net Tangible Assets per Security
2017
$
2016
$
Net tangible assets per security 0.36 0.34


Information on Audit or Review
The interim report is based on accounts which have been subject to review.

Loss/Gain of Control over Entities having Material Effect
Kathmandu Holdings Limited does not have any interests in entities which are not controlled
entities.

Kathmandu Holdings Limited
FY2017 first half results


• Sales increased by 0.2% to NZ$196.3m
• NPAT increased by 6.4% to NZ$10.0m
• Interim Dividend increased to NZ4.0cps from NZ3.0 cps

Kathmandu Holdings Limited (ASX/NZX: KMD) today announced Net Profit After Tax (NPAT) of
NZ$10.0 million for the six months ended 31 January 2017, an increase of NZ$0.6 million
compared with the prior corresponding period.

Summary of Results

1H FY17 1H FY16 Change Change
NZD $m NZD $m NZD $m %
Sales 196.3 196.0 0.3 0.2%
Gross Profit 121.0 123.1 (2.1) (1.7%)
EBITDA 21.5 21.9 (0.4) (1.8%)
EBIT 14.8 15.1 (0.3) (2.0%)
NPAT 10.0 9.4 0.6 6.4%
Chief Executive Officer Xavier Simonet commented:
“The results for the first half of FY2017 were overall in line with our expectations. It is pleasing
to exceed last year’s first-half net profit while absorbing c. $4m of adverse foreign currency
impacts in gross margin. We achieved strong same store sales growth in Australia which is our
largest market, as we maintained rigorous cost control and continued to drive working capital
efficiency.”

Sales, Store Numbers, Gross Margin and Inventory

Sales Growth
Sales grew in Australia and New Zealand, with strong same store sales growth in Australia, our
largest market. UK sales declined with the closure of three stores last year.

Total Sales
Growth
Same Store
Sales Growth
Local currency Local currency
Australia 6.0% 5.0%
New Zealand 0.9% 1.2%
United Kingdom (57.8%) (26.5%)
Group (constant currency) 3.0% 3.4%
Group (NZD reporting currency) 0.2% 0.6%
Note: Same store sales are for the 26 weeks ended 29 January 2017

Online sales grew strongly, assisted by the launch of a responsive website in November, which
delivers a better customer experience as it integrates product and content. Overall, we
achieved over 18% online sales growth, resulting in online sales reaching 7.4% of total sales.

Store Openings
Kathmandu opened two new Australian stores in the last twelve months, and closed one store.
Three UK stores were closed during last year reflecting our decision to grow international
presence through online retail and wholesale partnerships. We will continue to expand our
store footprint particularly in Australia as return on investment justifies.

Gross Margin
Gross margin was 61.6% in 1H FY17, a decrease of 1.2% points from 1H FY16. Sourcing
negotiations, product newness, price action, and improved stock control all helped to offset
higher input costs as a result of foreign currency. A higher proportion of clearance sales year on
year also had a negative impact on gross margin.

Inventory
Total inventory levels decreased by -6.7% (NZ$6.9m) from 1H FY16, and by 3.8% on a stock per
store basis at constant exchange rates.

1H FY17
NZD $m
1H FY16
NZD $m
Change
NZD $m
Change
%
Change
per store %

Inventory

96.4

103.3

(6.9)

(6.7%)

(3.8%)

The reduction in inventory is the result of our continuing investment in forecasting and
planning technology since FY2014. More accurate buying, to reflect store range differences,
provides efficiencies in our working capital requirements.

Operating Expenses
Operating expenses decreased by NZ$1.8m and by 1.0% as a percentage of sales compared to
1H FY16.

Rent increased by NZ$1.5m, and included relocations of the new Australian distribution centre
and the New Zealand support office.

Other operating expenses decreased by NZ$3.3m or 1.7% as a percentage of sales, with
efficiencies achieved in advertising, support office costs, and retail labour.

Operating expenses (excluding depreciation)

1H FY17
NZD $m
1H FY16
NZD $m
Rent 30.5 29.0
% of Sales 15.5% 14.8%
Other operating expenses 69.0 72.3
% of Sales 35.2% 36.9%
Total 99.5 101.3
% of Sales 50.7% 51.7%

Other Financial Information

We invested NZ$6.8m in capital projects during the first half, primarily in the expansion of our
store network. We also completed the new Melbourne distribution centre, which was designed
to support Kathmandu’s future growth plans.


Lower net debt and subsequent lower financing costs were a direct benefit from improved
working capital efficiency. Our gearing decreased year on year and remains conservative at
13.9%.

1H FY17
NZD $m
1H FY16
NZD $m
Capital Expenditure 6.8 12.9
Operating Cash Flow 10.0 24.2
Net Debt 48.9 66.8
Net Debt: Net Debt + Equity 13.9% 17.9%


Interim Dividend

An interim dividend of NZ$ 4.0 cents per share will be paid to shareholders on the register as at
2 June 2017. The dividend will be unfranked for Australian shareholders and fully imputed for
New Zealand shareholders.


Outlook

Chief Executive Xavier Simonet commented:

“We have had a solid start to FY17, but as always the success of our full year result will hinge
on key sale periods that fall in the second half.

We have worked hard to minimise the impact of currency on our gross margin through
sourcing negotiations, product newness, price action, improved stock management and cost
control. Maintaining gross margin and operating efficiency will continue to be a key focus.

We will continue to deliver great value to our customers through the benefits of our refreshed
Summit Club loyalty programme, and by designing innovative, distinctive and sustainable
quality products.

The Australasian business provides the foundation for our brand to expand internationally. As
we look forward past FY17, I am excited about the progress we are making towards securing
new international wholesale relationships.”

INTERIM
REPORT
2017
KATHMANDU HOLDINGS LIMITED
kathmandu.com.au
kathmandu.co.nz
kathmandu.co.uk

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
2
The Directors of Kathmandu Holdings
Limited present the interim report for
the Company and its controlled entities
for the half year ended 31 January 2017.
Review of Operations
The consolidated net profit for the
period was NZ$10.009 million
(2016: NZ$9.410 million). Sales for
the period were NZ$196.316 million
(2016: NZ$195.977 million).
A review of the operations of the
Company and its controlled entities is
set out in the accompanying Company’s
media release of 21 March 2017. The key
line items in the half year results were:
Seasonality
Due to the seasonal nature of the
Company and its controlled entities
activities, the activities in the second
half of each year are expected to
provide a larger portion of the sales and
net profit for the full year.
Dividends
On 20 March 2017, the Directors
declared a dividend of NZ 4.0 cents
per share. This will be fully imputed for
New Zealand shareholders and will be
unfranked for Australian shareholders.
Signed in accordance with a resolution
of the directors:
• SALES UP 0.2%
TO NZ$196.3M
• EBIT DOWN NZ$0.3M

TO NZ$14.8M
• NPAT UP NZ$0.6M
TO A PROFIT OF
NZ$10.0M
David Kirk
Director
Xavier Simonet
Director
DIRECTORS’ REPORT

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
3
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2017
NZ$’000
NOTEUNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2016
NZ$’000
AUDITED
YEAR
ENDED
31 JULY
2016
NZ$’000
Sales revenue196,316195,977425,593
Cost of sales (75,327)
(72,863)(159,232)
Gross profit 120,989123,114266,361
Selling expenses4(69,980)(70,005)(139,285)
Administration and general expenses4(29,548)
(31,246)(62,278)
(99,528)(101,251)(201,563)
Earnings before interest, tax, depreciation and amortisation 21,46121,86364,798
Depreciation and amortisation4(6,631)
(6,724)(13,917)
Earnings before interest and tax14,83015,13950,881
Finance income151326
Finance expenses(1,211)
(1,795)(3,582)
Finance costs - net4(1,196)
(1,782)(3,556)
Profit before income tax 13,63413,35747, 3 2 5
Income tax expense(3,625)(3,947)(13,804)
Profit after income tax10,0099,41033,521
Comprehensive income that may be recycled through profit and
loss:
Movement in cash flow hedge reserve 2,649(4,899)(15,891)
Movement in foreign currency translation reserve(2,613)
(2,061)(6,384)
Other comprehensive income/(expense) for the period, net of tax36
(6,960)(22,275)
Total comprehensive income for the period attributable to
shareholders
10,0452,45011,246
Basic earnings per share 5.0 cps4.7 cps16.6 cps
Diluted earnings per share4.9 cps4.6 cps16.6 cps
Weighted average basic ordinary shares outstanding (‘000)201,485201,485201,484
Weighted average diluted ordinary shares outstanding (‘000)203,045202,381202,439

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
4
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2017
NZ$’000
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2016
NZ$’000
AUDITED
YEAR
ENDED
31 JULY
2016
NZ$’000
Total equity at the beginning of the period 309,133313,314313,314
Total comprehensive income for the period10,0452,45011,246
Dividends paid(16,119)(10,074)(16,119)
Issue of share capital---
Movements in share based payments reserve26992692
Total equity at the end of the period303,328305,782309,133

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
5
CONSOLIDATED
BALANCE SHEET
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
NOTEUNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
AUDITED
AS AT
31 JANUARY
2016
NZ$’000
ASSETS
Current assets
Cash and cash equivalents2,6594,0286,891
Trade and other receivables5,3997, 31 35,031
Derivative financial instruments-7, 0 47-
Current tax asset2,7731,565-
Inventories96,371103,25195,436
Total current assets107,202123,204107,358
Non-current assets
Property, plant and equipment1061,17259,45161,609
Intangible assets231,5042 37, 31 4234,015
Derivative financial instruments---
Deferred tax7, 2 8 85,73210,271
Total non-current assets299,964302,497305,895
Total assets407,166425,701413,253
LIABILITIES
Current liabilities
Trade and other payables48,73148,56351,084
Derivative financial instruments3,199287,529
Current tax liabilities--1,212
Total current liabilities51,93048,59159,825
Non-current liabilities
Derivative financial instruments313451604
Interest bearing liabilities651,59570,87743,691
Total non-current liabilities51,90871,32844,295
Total liabilities103,838119,919104,120
Net assets303,328305,782309,133
EQUITY
Contributed equity - ordinary shares200,191200,191200,191
Reserves(24,235)(9,806) (24,541)
Retained earnings1 27, 37 2115,397133,483
Total equity303,328305,782309,133

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
6
CONSOLIDATED STATEMENT
OF CASH FLOWS
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2017
NZ$’000
NOTEUNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2016
NZ$’000
AUDITED
YEAR
ENDED
31 JULY
2016
NZ$’000
Cash flows from operating activities
Cash was provided from:
Receipts from customers195,909195,301424,182
Income tax received--1,357
Interest received151326
195,924195,314425,565
Cash was applied to:
Payments to suppliers and employees177,888162,248336,968
Income tax paid6,7307,03416,688
Interest paid1,2731,8452,829
185,891171,127356,485
Net cash inflow from operating activities10,03324,18769,080
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment-85
Cash was applied to:
Purchase of property, plant and equipment5,70012,19620,729
Purchase of intangibles1,0926872,467
6,79212,88323,196
Net cash (outflow) from investing activities(6,792)(12,875)(23,191)
Cash flows from financing activities
Cash was provided from:
Proceeds of loan advances41,92133,89363,047
Cash was applied to:
Dividends16,11910,07416,119
Repayment of loan advances33,42133,16587,658
49,54043,239103,777
Net cash (outflow) from financing activities(7,619)(9,346)(40,730)
Net increase / (decrease) in cash held(4,378)1,9665,159
Opening cash and cash equivalents 6,8911,7001,700
Effect of foreign exchange rates14636232
Closing cash and cash equivalents2,6594,0286,891

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
7
RECONCILIATION OF NET PROFIT
AFTER TAXATION WITH CASH INFLOW
FROM OPERATING ACTIVITIES
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2017
NZ$’000
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2016
NZ$’000
AUDITED
YEAR
ENDED
31 JULY
2016
NZ$’000
Profit after income tax 10,0099,41033,521
Movement in working capital:
(Increase) in trade & other receivables(408)(3,619)(1,440)
(Increase) / decrease in inventories(2,176)8,67213,528
Increase / (decrease) in trade and other payables(1,555)5,3858,735
Decrease in tax liability
(3,988)(3,122)(388)
(8,127)
7, 31 620,435
Add non cash items:
Depreciation4,9654,78110,019
Amortisation of intangibles1,6661,9433,898
Impairment of assets-1,1081,094
Revaluation of derivative financial instruments(1,907)1,3635,436
(Increase) / decrease in deferred taxation2,832(1,828)(6,481)
Employee share based remuneration26992692
Loss on disposal of property, plant and equipment3262466
8,1517,46115,124
Cash inflow from operating activities10,03324,18769,080

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
9
Kathmandu Holdings Limited (the Company) and its subsidiaries (together the Group) is a designer, marketer and retailer of
clothing and equipment for travel and adventure. It operates in New Zealand, Australia and the United Kingdom.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is
223 Tuam Street, Christchurch.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 21 March 2017, and
have been reviewed, not audited.
Seasonality
The majority of Kathmandu’s annual sales are derived from three major sales promotions each year, occurring in a portion of the
months of December and January (Christmas), March and April (Autumn) and June and July (Winter). Two of these sales occur
in the second half of the financial year, and the Winter Sale is the largest of these three promotions. As a consequence, a greater
proportion of Kathmandu’s sales and EBITDA are derived in the second half of each financial year, with the proportion in any
given year dependent on the relative success of each of these promotions.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These general purpose financial statements for the six months ended 31 January 2017 have been prepared in accordance with
NZ IAS 34, Interim Financial Reporting. In complying with NZ IAS 34, these consolidated interim financial statements also comply
with IAS 34.
These consolidated interim financial statements do not include all the notes of the type normally included in an annual financial
report. Accordingly, this report should be read in conjunction with the audited financial statements of Kathmandu Holdings
Limited for the year ended 31 July 2016 which have been prepared in accordance with the New Zealand equivalents
to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
The Group is designated as a profit-oriented entity for financial reporting purposes.
3. ACCOUNTING POLICIES
All significant accounting policies have been applied on a basis consistent with those used in the audited financial statements
of Kathmandu Holdings Limited for the year ended 31 July 2016.
4. EXPENSES
1. GENERAL INFORMATION
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2017
NZ$’000
UNAUDITED
SIX MONTHS
ENDED
31 JANUARY
2016
NZ$’000
AUDITED
YEAR
ENDED
31 JULY
2016
NZ$’000
Profit before tax includes the following expenses:
Depreciation4,9654,78110,019
Amortisation1,6661,9433,898
Impairment of assets-1,1081,094
Employee benefit expense41,24341,68583,168
Rental expense30,49228,95758,252
Finance costs – net consist of:
Interest income(15)(13)(26)
Interest expense9821,4202,665
Other finance costs186144344
Net exchange loss on foreign currency borrowings43231573

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
10
The Group has a multi option facility agreement with Commonwealth Bank of Australia and ASB Bank Limited and a facility
agreement with Bank of New Zealand and National Bank of Australia.
The loans are repayable in full on final maturity date of the facilities being 23 March 2018. Interest is payable based on the BKBM
rate (NZD borrowings), the BBSY rate (AUD borrowings), or the applicable short term rate for interest periods less than 30 days,
plus a margin of up to 1.30%. The bank loans are secured against the assets of the company and its subsidiaries.
The covenants entered into by the Group require specified calculations of Group earnings before interest, tax, depreciation and
amortisation (EBITDA) plus lease rental costs to exceed total fixed charges (net interest expense and lease rental costs) at the
end of each half during the financial year. Similarly EBITDA must be no less than a specified proportion of total net debt at the
end of each six month interim period. The calculations of these covenants are specified in the bank facility agreement of 19
December 2011 and have been complied with at 31 January 2017.
The current interest rates, prior to hedging, on the term loans ranged between 2.27% - 2.74% (2016: 2.75% - 3.49%).
7. CONTINGENT LIABILITIES
5. RELA
TED PARTY DISCLOSURES
Pa re nt and Ultimate Contro lling Party
Kathmandu Holdings Limited is the immediate parent, ultimate parent and controlling party.
During the period, legal fees of $214,140 (2016: $159,904) were paid to Chapman Tripp for services (primarily related to takeover
defence activity and property leases). John Holland is a Director of Kathmandu Holdings Limited, and during the period was a
Consultant of Chapman Tripp. John Holland ceased to be a Consultant of Chapman Tripp on 30 November 2016.
Dur
ing the period, operating lease costs of $112,268 (2016: $120,497) were paid to Chalmers Properties Limited, a subsidiary of
Po rt Otago Limited. John Harvey is a Director of both of these companies.
No amounts owed to re lated parties have been written off or forgiven during the period.
6. INTEREST BEARING LIABILITIES
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
AUDITED
AS AT
31 JULY
2016
NZ$’000
AUDITED
AS AT
31 JULY
2016
NZ$’000
Non-current portion51,59570,87743,691
Liabilities outstanding under letters of credit-4,479159

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
11
There are no contingent assets as at 31 January 2017 (2016: nil).
9. COMMITMENTS
(a) Operating lease commitments
Group as lessee:
Rent expenses reported in these financial statements relate to non-cancellable operating leases. The future commitments on
these leases are as follows:
Some of the existing lease agreements have right of renewal options for varying terms.
The Group leases various properties under non-cancellable lease agreements. These leases are generally between 1 - 10 years.
(b) Capital commitments
Capital commitments contracted for at balance date are:
10. PROPERTY PLANT & EQUIPMENT
8. CONTINGENT ASSETS
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2017
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
UNAUDITED
AS AT
31 JANUARY
2016
NZ$’000
AUDITED
AS AT
31 JULY
2016
NZ$’000
AUDITED
AS AT
31 JULY
2016
NZ$’000
AUDITED
AS AT
31 JULY
2016
NZ$’000
Due within 1 year51,84851,26152,120
Due within 1-2 years43,12742,02240,905
Due within 2-5 years73,24874,56270,970
Due after 5 years33,88937,53532,112
202,112205,380196,107
Property, plant and equipment1,7259,6282,882
Intangible assets8508251,410
Additions5,70012,19620,729
Disposals(326)(4)(452)

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
12
(a) Financial risk factors
The Group’s activities expose it to a variety of financial risks, market risk (including currency risk and interest rate risk), credit risk
and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks
to minimise potential adverse effects on the financial performance of the Group. The Group uses derivative financial instruments
such as foreign exchange contracts and interest rate swaps to manage certain risk exposures. Derivatives are exclusively used for
economic hedging purposes, i.e. not as trading or other speculative instruments, however not all derivative financial instruments
qualify for hedge accounting.
Risk management is carried out based on policies approved by the Board of Directors. The Group treasury policy provides written
principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk.
The consolidated interim financial statements do not include all financial risk management information and disclosures required
in the annual financial statements; they should be read in conjunction with the Group’s annual financial statements as at 31 July
2016. There have been no changes in the risk management department or in any risk.
(b) Fair value estimation
The only financial instruments held by the Group that are measured at fair value are over-the-counter derivatives. These
derivatives have all been determined to be within level 2 (for the purposes of NZ IFRS 13) of the fair value hierarchy as all
significant inputs required to ascertain the fair value of these derivatives are observable.
There were no changes in valuation techniques during the period.
The following methods and assumptions were used to estimate the fair values for each class of financial instrument.
Trade debtors, trade creditors and bank balances
The carrying value of these items is equivalent to their fair value.
Term liabilities
The fair value of the Group’s term liabilities is approximately carrying value.
Foreign exchange contracts and interest rate swaps
The forward foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active market.
Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves. The effects of discounting
are insignificant for these derivatives.
Guarantees and overdraft facilities
The fair value of these instruments is estimated on the basis that management do not expect settlement at face value to arise.
The carrying value and fair value of these instruments is approximately nil. All guarantees are repayable on demand.
The following table presents the group’s assets and liabilities that are measured at fair value at 31 January 2017.
11. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
TOTAL
NZ$’000
Assets
Derivative financial instruments-
Total assets -
Liabilities
Derivative financial instruments 3,512
Total liabilities 3,512

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
13
The Group operates in three geographical areas: New Zealand, Australia and the United Kingdom.
There are no events after balance date which materially affect the information within the financial statements.
The New Zealand segment has been represented to exclude holding company balances. Other represents holding companies
and consolidation eliminations.
EBITDA represents earnings before income taxes (a non-GAAP measure), excluding interest income, interest expense,
depreciation and amortisation, as reported in the financial statements. EBIT represents EBITDA less depreciation and
amortisation.
The Group operates in one industry being retailer of clothing and equipment for travel and adventure.
Revenue is allocated based on the country in which the customer is located.
Costs recharged between Group companies are calculated on an arms-length basis. The default basis of allocation is %
of revenue with other bases being used where appropriate.
Total assets / liabilities are allocated based on where the assets / liabilities are located.
12. SEGMENTAL INFORMATION
13. EVENTS OCCURRING AFTER BALANCE DATE
31 January 2017
Total segment sales126,58169,8221,152-197,555
Inter-segment sales
(208)(1,031)
--
(1,239)
Sales from external customers126,37368,7911,152-196,316
EBITDA7,41515,48873(1,515)21,461
Depreciation and software amortisation(3,574)(3,055)(2)-(6,631)
EBIT3,84112,43371(1,515)14,830
Income tax expense3013,632-(308)3,625
Total segment assets210,182238,001642(41,659)407,166
Total assets includes:
Non-current assets144,76228,6243126,575299,964
Additions to non-current assets4,6732,119--6,792
Total segment liabilities138,30336,64711,498(82,610)103,838
31 January 2016
Total segment sales124,40268,3055,400-198,107
Inter-segment sales
(237)(136)(1,757)
-
(2,130)
Sales from external customers124,16568,1693,643-195,977
EBITDA7, 7 9 015,789(212)(1,504)21,863
Depreciation and software amortisation(3,423)(3,088)(212)(1)(6,724)
EBIT4,36712,701(424)(1,505)15,139
Income tax expense7303,589-(372)3,947
Total segment assets225,642213,9224,578(18,441)425,701
Total assets includes:
Non-current assets149,50926,34750126,591302,497
Additions to non-current assets11,5341,3481-12,883
Total segment liabilities135,91426,84217,803(60,640)119,919
AUSTRALIA
NZ$’000
AUSTRALIA
NZ$’000
NEW

ZEALAND
NZ$’000
NEW

ZEALAND
NZ$’000
UNITED

KINGDOM
NZ$’000
UNITED

KINGDOM
NZ$’000
OTHER
NZ$’000
OTHER
NZ$’000
TOTAL
NZ$’000
TOTAL
NZ$’000

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
14
PricewaterhouseCoopers
PwC Centre, Level 4, 60 Cashel Street, Christchurch Central, PO Box 13244, Christchurch 8141, New Zealand
T: +64 3 374 3000, F: +64 3 374 3001, pwc.co.nz
Independent Review report
To the shareholders of Kathmandu Holdings Limited
Report on the Kathmandu Holdings Limited Financial Statements
We have reviewed the accompanying financial statements of Kathmandu Holdings Limited (“the
Company”) and its controlled entities (“the Group”) on pages 3 to 13, which comprise the consolidated
balance sheet as at 31 January 2017, and the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the period
ended on that date, and a summary of significant accounting policies and selected explanatory notes.
Directors’ Responsibility for the Financial Statements
The Directors are responsible on behalf of the Group for the preparation and presentation of these
financial statements in accordance withNew Zealand Equivalent to International Accounting Standard
34 Interim Financial Reporting (NZ IAS 34)and for such internal controls as the Directors determine are
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Our Responsibility
Our responsibility is to express a conclusion on the accompanying financial statements based on our
review. We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410Review of Financial Statements Performed by the Independent Auditor of the Entity(NZ SRE
2410). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to
believe that the financial statements, taken as a whole, are not prepared in all material respects, in
accordance with NZ IAS 34. As the auditors of the Company, NZ SRE 2410 requires that we comply with
the ethical requirements relevant to the audit of the annual financial statements.
A review of financial statements in accordance with NZ SRE 2410 is a limited assurance engagement. The
auditors perform procedures, primarily consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. The
procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and International Standards on
Auditing. Accordingly we do not express an audit opinion on these financial statements.
We are independent of the Group. Other than in our capacity as auditors and providers of other related
assurance services we have no relationship with, or interests in, the Group.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these financial
statements of the Group are not prepared, in all material respects, in accordance with NZ IAS 34.
Restriction on Distribution or Use
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are required to
state to them in our review report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the shareholders, as a body, for our review
procedures, for this report, or for the conclusion we have formed.
For and on behalf of:
Chartered AccountantsChristchurch
21 March 2017

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
15
GROUP STRUCTURE
Kathmandu Holdings Limited owns 100% of the following companies:
Milford Group Holdings Limited
Kathmandu Limited
Kathmandu Pty Limited
Kathmandu (UK) Limited

DIRECTORS’ DETAILS
David Kirk Chairman, Non-Executive Director
Xavier Simonet Managing Director and Chief Executive Officer
John Harvey Non-Executive Director
Christine Cross Non-Executive Director
John Holland Non-Executive Director
Sandra McPhee Non-Executive Director
EXECUTIVES’ DETAILS
Xavier Simonet Chief Executive Officer
Reuben Casey Chief Financial Officer and Company Secretary
DIRECTORY
The details of the company’s principal administrative and registered office in New Zealand is:
223 Tuam Street
Christchurch Central
PO Box 1234
Christchurch 8011
STATUTORY INFORMATION

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2017
16
SHARE REGISTRY
In New Zealand:
Link Market Services (LINK)
Physical Address:
Level 11 Deloitte Centre
80 Queen Street
Auckland 1010
New Zealand
Postal Address:
PO Box 91976
Auckland, 1142
New Zealand
Telephone:
+64 9 375 5999
Investor enquiries:
+64 9 375 5998
Facsimile:
+64 9 375 5990
Internet address:
www.linkmarketservices.co.nz
In Australia:
Link Market Services (LINK)
Physical Address:
Tower 4, Collins Square
727 Collins Street
Melbourne, VIC 3008
Australia
Postal Address:
Locked Bag A14
Sydney, South NSW 1235
Australia
Telephone:
+61 1300 554 474
Investor enquiries:
+61 1300 554 474
Facsimile:
+61 2 9287 0303
Internet address:
www.linkmarketservices.com.au
Stock Exchanges
The company’s shares are listed on the NZX and the ASX.
Incorporation
The company is incorporated in New Zealand.

KATHMANDU HOLDINGS LIMITED
INTERIM REPORT 2017
kathmanduholdings.com