1H FY2017 Investor Presentation

1H FY17 Results Presentation
March 2017

Contents
1.Result Overview
2.Key Line Items
3.Country Results
4.Cash Flow, Balance Sheet, Dividend
5.Strategy Update
6.FY17 Outlook
7.Questions
A.Appendices
March 2017
2

3
Strategy Recap
“Design great, innovative, distinctive and sustainable quality products”
“Be customer-centric in everything we do”
GROWTH STRATEGIES
Continuous improvements
»Brand and customer
»Store optimisation
»Pricing and promotion
»Connected customer journey
»Cost efficiency
Growth initiatives
»International
»Marketplaces
»Store network expansion

4
1.Result Overview

1.Result Overview: Highlights
Key Points
»Strong same store sales growth in Australia
»Sales and net profit growth
»Improved operating leverage
»Lower financing costs from working capital efficiency
»Interim dividend increased to NZ 4.0cps, from NZ 3.0cps
Sales and Margin
»Sales increased by $0.3m / 0.2%
»Same store sales growth 3.4% (at constant exchange rates)
»Gross margin 61.6%
Operating Costs
»Operating expenses decreased 100 bps as a % of sales
Profit
»EBITDA $21.5m, down 1.8%, $22.0m at constant currency
»EBIT $14.8m, down 2.0%, $15.2m at constant currency
»NPAT $10.0m, up 6.4%
5

1.Result Overview: Year-on-Year
NZD$m
*1
1H FY171H FY16Var $Var %
SALES196.3196.00.30.2%
GROSS PROFIT
Gross margin
121.0
61.6%
123.1
62.8%
(2.1)
(1.7%)
OPERATING EXPENSES
% of Sales
(99.5)
50.7%
(101.3)
51.7%
1.8(1.8%)
EBITDA
EBITDA margin %
21.5
11.0%
21.9
11.2%
(0.4)(1.8%)
EBIT
*2
EBIT margin %
14.8
7.5%
15.1
7.7%
(0.3)(2.0%)
NPAT10.09.40.66.4%
Store count
*3
162163-1
1.1H FY17 NZD/AUD conversion rate 0.958 (1H FY16: 0.920), 1H FY17 NZD/GBP conversion rate 0.568 (1H FY16: 0.425)
2.EBIT YOY adverse exchange rate translation impact in 1H FY17 -$0.4m
3.Excludes Online stores
4.Rounding differences may arise in totals, both $ and %
6

7
2.Key Line Items

2.Sales
»Sales growth year on year:
*1
AU 6.0%, NZ 0.9%, UK -57.8%
»At constant exchange rates total sales
growth $5.9m / 3.0%
»Online sales grew by over 18%
*1
to
represent 7.4% of total sales
$165.9
$167.6
$179.4
$196.0
$196.3
1H FY131H FY141H FY151H FY161H FY17
Group Sales (NZD $m)
$81.8
$93.9
$104.9
$114.2
$121.1
1H FY131H FY141H FY151H FY161H FY17
Australia (AUD $m)
$59.0
$62.3
$65.2
$68.2
$68.8
1H FY131H FY141H FY151H FY161H FY17
New Zealand (NZD $m)
1.Calculated on local currency sales results (not affected by year-on-year exchange rate variation)
2.Country sales totals exclude inter-company sales
3.UK Sales: £654k1H FY17 vs £1,548k1H FY16
8
SALES: +0.2% to $196.3m

2.Australasian Sales Growth –constant currency
9
»Core business (AU/NZ) solid constant currency sales growth +4.2%
5.6
2.4
5.2
192.3
200.4
195.2
1H FY16
AU/NZ
Sales
Retail
Stores
Online1H FY17
AU/NZ
Sales
(constant
currency)
Exchange
Rates
1H FY17
AU/NZ
Sales
AU/NZ SALES GROWTH +4.2%

2.Same Store Sales Result
9.6%
1.3%
6.6%
3.2%
0.9%
4.8%
4.3%
3.1%
5.0%
1.2%
AustraliaNew Zealand
1H FY131H FY141H FY151H FY161H FY17
3.7%
6.1%
-3.5%
5.4%
0.6%
2.7%
5.8%
3.8%
0.6%
3.4%
GROUP - Actual RatesGROUP - Constant Rates
1H FY131H FY141H FY151H FY161H FY17
»Same store sales:
+0.6% actual exchange rates
+3.4% constant exchange rates:
»Stores +2.5%
»Online +15.7%
»UK same store sales -26.5%
1.Measurement period FY17: 26 weeks ended 29 January 2017 compared to 26 weeks ended 31 January 2016
2.Same store sales measurement includes Online and all stores from their 53rd week of trading
10
SAME STORE SALES: +3.4% at constant rates

2.Gross Margin %
66.1%
57.3%
53.1%
62.7%
67.4%
58.6%
50.4%
63.9%
61.4%
56.0%
50.7%
59.3%
64.6%
60.2%
50.4%
62.8%
63.6%
58.2%
53.8%
61.6%
AUNZUKGROUP
1H FY131H FY141H FY151H FY161H FY17
AU66.4%
NZ33.1%
UK0.5%
1H FY17 SHARE OF BUSINESS
(GROSS PROFIT $)
»Gross margin impact due to favourable hedging rolling off. Largely offset by
supplier negotiations, product newness, price action and improved stock
control
»Some impact from a higher clearance mix year on year
»Hedge contract rates lower vs pcp:
»2H FY16 -13%
»1H FY17 -15%
»2H FY17 -4%
11

2.Cost of Doing Business
NZD$m1H FY171H FY16Var $Var %
Rent
% of Sales
30.5
15.5%
29.0
14.8%
1.55.2%
Other operating expenses
% of Sales
69.0
35.2%
72.3
36.9%
(3.3)(4.6%)
Total operating expenses
*1
% of Sales
99.5
50.7%
101.3
51.7%
(1.8)(1.8%)
Depreciation
% of Sales
6.6
3.4%
6.7
3.4%
(0.1)(1.5%)
Cost of doing business
% of Sales
106.2
54.1%
108.0
55.1%
(1.8)(1.7%)
»Rent increase includes new Australian distribution
centre and New Zealand support office
»Promotional spend more targeted as a % of sales
»Efficiencies gained through optimising retail labour
and FY16 structural review of support office
»1H FY16 non-recurring items cycled:
»closure of UK stores $0.5m
»support office restructuring $0.5m
»1H FY17 includes:
»international business opexinvestment $0.2m
1.1H FY17 total operating expense decrease attributable to year-on-year exchange rate translation movement $3.0m
2.Rounding differences may arise in totals, both $ and %
12
OPERATING EXPENSES: -1.8% to $99.5m

20.9
22.6
6.8
21.9
21.5
1H
FY13
1H
FY14
1H
FY15
1H
FY16
1H
FY17
EBITDA $21.5m
-1.8%
15.8
17.6
0.6
15.1
14.8
1H
FY13
1H
FY14
1H
FY15
1H
FY16
1H
FY17
EBIT $14.8m
-2.0%
10.3
11.4
-1.8
9.4
10.0
1H
FY13
1H
FY14
1H
FY15
1H
FY16
1H
FY17
NPAT $10.0m
+6.4%
2.Earnings Summary
1.Adjusted for the year on year translation impact of AUD and GBP results reported in NZD
13
12.6%13.5%3.8%11.2%11.0%
EBITDA %
9.5%10.5%0.3%7.7%7.5%
EBIT %
6.2%6.8%4.8%5.1%
NPAT %
•EBITDA at constant exchange rates $22.0m
*1
•EBIT at constant exchange rates $15.2m
*1

3.Country Results

3. Australia
»Gross margin decreased 100bps / 1.0% of sales
»Total operating expenses (incl. depreciation):
»1H FY17 60.1% of sales
»1H FY16 60.6% of sales
»2 new stores:
»Gold Coast Harbour Town (2H FY16)
»North Lakes (1H FY17)
»4 relocated/refurbished stores
»Pacific Fair, WarringahMall, Doncaster,
Essendon DFO
»1 store closed
»Logan (1H FY17)
AUD $m
*1
1H FY171H FY16Var %
Sales121.1114.26.0%
Same store sales growth5.0%4.3%
EBIT (trading result)
*2
4.24.6(8.7%)
EBIT margin %3.5%4.0%
Store count114113
6.6
9.2
-0.8
4.6
4.2
1H FY131H FY141H FY151H FY161H FY17
EBIT (trading result) AUD $m
1.Rounding differences may arise in totals, both $ and %
2.A reconciliation of EBIT (trading result) to the financial statements is included in Appendix 2
15
SALES: +6.0% to $121.1m

3. New Zealand
»Gross margin decreased 200bps / 2.0% of sales
»Total operating expenses (incl. depreciation):
»FY17 40.9% of sales
»FY16 42.5% of sales
»1 relocated store
»Christchurch CBD (2H FY16)
»2 refurbished stores
»Sylvia Park, Queenstown
NZD $m
*1
1H FY171H FY16Var %
Sales68.868.20.9%
Same store sales growth1.2%3.1%
EBIT (trading result)
*2
11.912.1(1.7%)
EBIT margin %17.3%17.7%
Store count4747
9.3
10.0
5.5
12.1
11.9
1H FY131H FY141H FY151H FY161H FY17
EBIT (trading result) NZD $m
16
SALES: +0.9% to $68.8m
1.Rounding differences may arise in totals, both $ and %
2.A reconciliation of EBIT (trading result) to the financial statements is included in Appendix 2

3. United Kingdom
»Cycling store closures in FY16
»Gross margin improved 340bps / 3.4% of sales
»Total operating expenses (incl. depreciation):
»1H FY17 47.7% of sales
»1H FY16 62.0% of sales
GBP £m
*1
1H FY171H FY16Var %
Sales0.71.5(57.8%)
Same store sales growth(26.5%)0.2%
EBIT (trading result)
*2
0.0(0.2)
EBIT margin %6.1%(11.6%)
Store count13
-0.5
-0.7
-1.4
-0.2
0.0
1H FY131H FY141H FY151H FY161H FY17
EBIT (trading result) GBP £m
17
SALES: -57.8% to £0.7m
1.Rounding differences may arise in totals, both $ and %
2.A reconciliation of EBIT (trading result) to the financial statements is included in Appendix 2

18
4.Cash Flow, Balance Sheet, Dividend

4. Cash Flow
NZD $m1H FY171H FY16
NPAT10.09.4
Change in working capital(8.1)7.3
Change in non-cash items8.17.5
Operating cash flow10.024.2
Key Line items:
Net interest paid (including facility fees)(1.3)(1.8)
Income taxes paid(6.7)(7.0)
Capital expenditure(6.8)(12.9)
Dividends paid(16.1)(10.1)
Increase/(Decrease) in net debt8.50.7
Capital expenditure $6.8m
(LY $12.9m - with significant investment in AU
distribution centreand flagship stores):
»Stores $3.9m (LY $5.7m)
»1 new store
»2 relocations
»3 major refurbishments
»1 minor expansion
»Infrastructure $1.9m (LY $6.6m)
»Melbourne distribution centre
»Systems $1.0m (LY $0.6m)
»Online enhancements
»Product lifecycle management
systemelbeo
1. Rounding differences may arise in totals, both $ and %
19

4. Balance Sheet
NZD $m1H FY171H FY16
Inventories96.4103.3
Property, plant and equipment61.259.5
Intangible assets231.5237.3
Other assets15.421.6
Total assets (excl. cash)404.5421.7
Key Ratios1H FY171H FY16
Gearing
*1
13.9%17.9%
Stock Turns
*2
1.621.57
Net interest bearing liabilities and cash48.966.8
Other non-current liabilities0.30.5
Current liabilities52.048.6
Total liabilities (net of cash)101.2115.9
Net assets303.3305.8
$0.640
$0.732
$0.616
$0.634
$0.595
1H FY131H FY141H FY151H FY161H FY17
Stock Per Store (NZ $m)
»Year on year decrease in stock per store -3.8% at
constant exchange rates (-6.2% at actual
exchange rates)
»Ongoing working capital efficiency contributing to
lower debt and lower financing costs
»Other assets reduction is hedging derivatives
1.Net Debt / (Net Debt + Equity) at balance date
2.COGS (rolling 12 months) / Average Inventories YOY
3.Rounding differences may arise in totals, both $ and %
20

4. Dividend
»NZ 4.0 cents per share interim dividend (1H FY16 NZ 3.0 cps)
»Dividend will be fully imputed for New Zealand shareholders
»Dividend will be unfranked for Australian shareholders
»Supplementary dividend of NZ 0.706 cents is payable to non-NZ shareholders
»Record date 2 June 2017
»Payment date 16 June 2017
»Final dividend is expected to be fully franked and fully imputed
21

22
5.Strategy Update
“Design great, innovative, distinctive and sustainable quality products”
“Be customer-centric in everything we do”
GROWTH STRATEGIES
Continuous improvements
»Brand and customer
»Store optimisation
»Pricing and promotion
»Connected customer journey
»Cost efficiency
Growth initiatives
»International
»Marketplaces
»Store network expansion

5.Strategy Update – Continuous Improvement
InitiativesProgressupdate
Brand and
customer
»Promote brand distinctiveness with products that showcase our
expertise in adventure travel
»Leverage our social media and digital marketing investments to
deliver great brand and product content
»Promotecustomer engagement through Summit Club loyalty
programme
»Deliver comprehensive customer service
»ISPO Goldaward 2017 for Terrane Adapt pack
»26% increase in social media reach, 366% increase in
click through, 6m video views
»Summit Club 1.7m active members up from 1.5m last
year, now over 1.0m active members in Australia
»Coast to Coast event sponsored for the first time
»Net promoter score >74% in New Zealand and Australia
Store
optimisation
»Enhance visual merchandising in store: combining value
message,product features and brand stories
»Optimise product space allocation to maximise gross profit
contribution
»Invest in relocations / refurbishments that deliver return on
capital
»Store VM and product ranging trialsconducted in FY16
executed in 1H FY17 and more in 2H FY17
»6 stores relocated/refurbished in 1H FY17
»8 relocations/refurbishmentsplanned for 2H FY17
Pricing and
promotion
»Continuously refine the structure of promotions to:
»activate foot traffic
»increase basket size
»maximise gross profit
»Constant innovationon promotional calendar to ensure
freshness
»Different offers and discountlevels activated to drive
higher basket size and increase average selling price
23

5.Strategy Update – Continuous Improvement
InitiativesProgressupdate
Connected
customer
journey
Provide a channel agnostic offer: one range available to all
customers wherever they choose to shop
»Invest in our online platform to further improve usability and
functionality
»Offer complementary products and services through our online
channels
»Drive site visitation through:
»targeted Summit Club campaigns
»affiliate partnering
»social media
»Responsive website launched in November 2016
»Online sales as a % of country sales are 7.7% Australia,
6.0% New Zealand
»Digital marketing cloudtools deployed 1H FY17 providing
targeted email capability
Cost
efficiency
»Maintain profit margin through enhanced supplier partnerships
»Drive supply chain efficiency through infrastructure
investments and automation
»Increase productivity by leveraging rostering systems
investment
»Leverage advertising content, particularly in social and digital
media channels
»Key supplier partnerships developedto enhance quality
and profitability
»Melbourne distribution centre investment completed,
efficiency benefits realised from FY18 onwards
»Foot traffic counters installed in allstores by June 2016,
customer conversion a key KPI for all stores
»Constant assessmentof marketing campaign efficiencies
based on reach and ROI
24

5.Strategy Update – Growth
InitiativesProgressupdate
International
»Identify and promote brand and product distinctiveattributes
that make Kathmandu relevant internationally
»Leverage our brand equity and online platform to expand
internationally using a capital light model
»Entry strategies for key growth markets include online only,
wholesale distribution, licensed or franchised retail stores
»European wholesale partnershipsto commence FY18
Marketplaces
»Sell through additional open marketplace sites where
strategically relevant
»Sales from marketplacesgrew by 70% year on year
»Increased collaboration on marketing programmes with
TradeMe and eBay Australia
Store
network
expansion
»Store footprint expansion where return on investment
justifies
»Store network target of 180 across Australasia
»1 newstore opened 1H FY17
»2 new sites secured for 2H FY17
25

5. Sustainability
»Our goal:Australasian industry leadership in sustainability
»Recognition: awarded “Large Business Sustainability Leaders in Australia” by the Banksia
Foundation, Australia’s longest running and arguably most prestigious sustainability awards
program
»Key achievements:
»Workers’ rights: progressing towards Fair Labor Association (FLA) accreditation by
October 2017
»Product stewardship: first Australasian brand member of Bluesign for sustainable
chemicals management, and increased our use of sustainable cotton from 59% to 74%
»Minimising our footprint: commissioned our third Green Star rated building as part of
our progressive carbon reduction program. Installed soft plastics recycling for 7 stores as
part of our new waste strategy
»Community engagement:implemented our first proactive Christmas giving campaign
and collected in store clothing donations
»Team development: Embedded sustainability in our core values, and invested in team
training and development
»For more information –Kathmandu’s 2016 Sustainability Report
26

27
6.FY17 Outlook

6.FY17 Outlook
28
MARKET / ENVIRONMENT
»Outdoor category competitor mix constantly changing and remains competitive
KATHMANDU
»More than a retailer, Kathmandu is a great brand that designs great, innovative, distinctive and sustainable quality products
»International wholesale business a developing growth opportunity
»We remain committed to continuous improvement with key focuses on:
»same store sales growth, particularly in Australia
»strengthening the Kathmandu brand and customer engagement
»connecting with customers through social media and digital channels
»cost control and efficiencies

29
7.Questions

Appendix 1 – Historical store count
30
1.Permanent open stores at balance date
2.One new store opened during 1H FY17, and one new store closed. Excludes Online stores
84
91
94
104
108
114
123
131
135
145
153
156
160
161161
1H
FY10
2H
FY10
1H
FY11
2H
FY11
1H
FY12
2H
FY12
1H
FY13
2H
FY13
1H
FY14
2H
FY14
1H
FY15
2H
FY15
1H
FY16
2H
FY16
1H
FY17
Australia and New Zealand Stores

Appendix 2 – Reconciliation of Country EBIT Trading Results
31
1H FY16 ($’000)AustraliaNew ZealandUnited KingdomOtherTotal
EBIT per Interim Report (NZD)4,36712,701(424)(1,505)15,139
Internal charges not trading related
*1
(NZD)583(583)---
EBIT (trading result) (NZD)4,95012,118(424)(1,505)15,139
EBIT (trading result) (Local currency)4,55412,118(180)(1,505)
1H FY17 ($’000)AustraliaNew ZealandUnited KingdomOtherTotal
EBIT per Interim Report (NZD)3,84112,43371(1,515)14,830
Internal charges not trading related
*1
(NZD)561(561)---
EBIT (trading result) (NZD)4,40211,87271(1,515)14,830
EBIT (trading result) (Local currency)4,21711,87240(1,515)
1. Internal charges not trading related include arm’s length margins charged for internal services