Annual Meeting presentation

Annual
General
Meeting
November 2017

2
Agenda: 2017 Annual General Meeting
»Chairman’s address
»Chief Executive Officer’s address
»Ordinary business
»Item 1: Financial Statements
»Item 2: Election of Directors
»Item 3: Auditors’ Remuneration
»Item 4: Grant of performance rights to Xavier Simonet
»Item 5: General business
»Other business

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Chairman’s address

CEO’s address

CEO’s address
»FY17 result summary
»Strategy update
»Trading update and outlook
5

6
4.6%
Sales
$445.3m
AU 6.9%
NZ 3.6%
Same Store Sales
+5.5%
12.0%
EBIT
$ 57. 0 m
13.5%
Net Profit After Tax
$38.0m
18.2%
Dividend
13cps
$29.9m
Net Debt
$6.9m
CEO’s address: FY17 result summary

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“Design great, innovative, distinctive
and sustainable quality products”
“Be customer-centric in
everything we do”
GROWTH STRATEGIES
Continuous improvement
»Brand and customer
»Store optimisation
»Pricing and promotion
»Omni-channel
»Cost efficiency
Growth initiatives
»International
»Marketplaces
»Store network expansion
CEO’s address: Strategy update

CEO’s address: Brand and customer
Brand elevation
»Brand distinctiveness through product design and innovation
»Focus on our expertise in adventure travel
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Customer centricity
»Enhance the customer service experience and staff product knowledge
»Inspire our customers and engage with our Summit Club members with
a focus on social media and digital
»Summit Club 1.7m active members (+8.2% year on year)
»30% increase in social media reach year on year

CEO’s address: Store optimisation
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Store upgrades completed Q1:
»Chadstone (Melbourne)
»Robina (Gold Coast)
»Cottesloe (Perth)
»Albury (NSW)
»Tower Junction (Chch)
»Hamilton (NZ)
»Northlands (Chchnext week)
Key FY18 activity:
»FY18: c.15 refurbishments
and 5 relocations scheduled
»Visual merchandising and
space allocation refinement
»Lighting upgrades continue
throughout the store
network
66
72
87
100
110
114
116
38
42
44
45
46
47
47
104
114
131
145
156
161
163
FY11FY12FY13FY14FY15FY16FY17
AUNZTotal
Store Rollout History

CEO’s address: Omni channel
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Offer a customer journey which is channel and device agnostic – customers choose how to transact
4.1%
5.1%
6.2%
6.9%
7.5%
FY13FY14FY15FY16FY17
Online % of Sales
»FY17 key achievements:
»AU/NZ responsive website launched, integrating content and commerce, and
boosting mobile conversion
»International direct to consumer responsive website launched
»FY18 further capability enhancements:
»Australian distribution centre automation now delivering improved customer service
levels, increased capacity in peak periods, and supply chain cost efficiencies
»Online re-platform to enable both click & collect and distributed order management
»Amazon entry into Australia another channel to market

CEO’s address: International update
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International Wholesale
»GO Outdoors (UK) expanding product range and store
distribution for European summer following positive sell
through to date
»Sportscheck and Otto (Germany) wholesale trials underway
with expanded distribution in Sportscheckfor European
summer
Marketplaces
»Tmall Global targeted at Mainland China is now live
»Otto marketplace (Germany) showing good growth

CEO’s address: Sustainability
Our goal:
Australasian
industry
leadership in
sustainability
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For more information:
Kathmandu’s 2017 Sustainability Report
Increasingly
important in
customer purchase
decisions

CEO’s address: Trading pattern
»Three major promotions a large portion of our annual trading (c. 60% of annual sales), in order of size:
»Winter
»Christmas
»Autumn
»First quarter is a small portion of total year turnover - it contains no major promotions
»Operating costs are weighted slightly more to the second half-year
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Last Year Sales mix across the year
17%28%55%
Q1 – no major
promotions
Q2 - includes Christmas Sale and
January Clearance
Includes Autumn and Winter Sales
FIRST HALF-YEARSECOND HALF-YEAR

CEO’s address: Trading update and outlook
FIRST QUARTER FINANCIAL RESULTS
A reset of clearance inventory c. 40% lower at end of FY17 resulting in:
»Gross margin 240 bps (2.4%) higher YOY
»Lower inventory handling costs
»Strong working capital position
»Improved first quarter EBIT
AFTER 16 FULL WEEKS ENDED 19 NOVEMBER 2017
»Total sales +0.6% vs pcp at constant exchange rates
*1
»Group same store sales decreased by -1.6% (constant exchange rates)
»Same store sales by country: Australia +2.9%, New Zealand -10.3%
»Low clearance stock was a significant driver of the lower sales growth, especially in New Zealand
OUTLOOK 1H FY18
»First half profit expected to be above last year
»Highly dependant on the success of our Christmas and January promotions
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1.At actual exchange rates +3.6% due to NZD depreciation YOY. Average conversion rates year-to-date NZD/AUD 0.912 (FY17 0.951) andNZD/GBP 0.545 (FY17 0.565)

Resolutions: Items 1 to 5

Item 1: Financial Statements
To receive and consider the Financial Report of the Company for the year ended 31 July 2017
together with the Directors’ and Auditor’s reports
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Item 2: Election of Directors
To elect Directors of the Company, each election to be voted on separately:
a)“That Mr. John Harvey who retires by rotation in accordance with Article 4.4 of the Company’s Constitution and
NZX Main Board Listing Rule 3.3.11 and, being eligible, offers himself for re-election, be re-elected as a Director of
the Company.”
b)"That Mr. Philip Bowman, having been appointed by the Board as a Director on 2 October 2017 and holding office
only until the next Annual Meeting, is now eligible for election in accordance with Article 4.3 of the Company’s
Constitution and, being eligible, offers himself for election, be elected as a Director of the Company.”
c)"That, Mr. Brent Scrimshaw, having been appointed by the Board as a Director on 2 October 2017 and holding office
only until the next Annual Meeting, is now eligible for election in accordance with Article 4.3 of the Company’s
Constitution and, being eligible, offers himself for election, be elected as a Director of the Company.”
Proxies:
In respect of this item of business, the following proxies have been received:
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2 (a)2(b)2(C)
In favour102,070,637102,178,569102,153,843
Against155,35245,04878,876
Open/Undecided54,16754,16754,167
The Chairman of the meeting intends voting the open and undirected proxies in favour of the resolution

Item 3: Auditors’ Remuneration
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“To record that PricewaterhouseCoopers continue in office as the Company’s auditors and to authorise the
Directors to fix the remuneration of PricewaterhouseCoopers for the ensuing year.”
Proxies:
In respect of this item of business, the following proxies have been received:
In favour102,139,328
Against85,225
Open/Undecided55,667
The Chairman intends voting the open and undirected proxies in favour of the resolution

Item 4: Grant of performance rights to Xavier Simonet
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To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company:
“That, for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant
to Xavier Simonet, Managing Director and Chief Executive Officer, of a number of performance rights up to a value
of A$568,050, calculated in accordance with the formula and terms described in the Explanatory Statement which
forms part of this Notice of Meeting.”
Proxies:
In respect of this item of business, the following proxies have been received:
In favour101,883,449
Against325,999
Open/Undecided47,869
In accordance with ASX Listing Rule 14.11.1, the Company will disregard any votes cast on Item 4 by Xavier Simonet or
any of his associates (Mr Simonet being the only director of the Company eligible to participate in the Kathmandu
Holdings Limited Long Term Incentive Plan). However, the Company need not disregard a vote if:
(a)it is cast by a person as proxy for a person who is entitled to vote in accordance with the directions on the proxy
form; or
(b)it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a
direction on the proxy form to vote as the proxy decides.

Other business