AGM presentation and Chairman’s address

Annual
General
Meeting
November 2018

2
Agenda: 2018 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: Increase cap on non-executive directors’ remuneration pool
»Item 6: General business
»Other business

Chairman’s address

CEO’s address

CEO’s address
»FY18 highlights:
»Financial results
»Oboz acquisition
»Sustainability achievements
»Strategy update
»Transformation journey
»Trading update and outlook
5

6
11.7%
Sales
$497.4m
AU 180 bps
NZ 260 bps
Gross margin
+140 bps
FY18 highlights - financial results
30.9%
EBIT
$74.6m
32.9%
Net profit after tax
$50.5m
Operating cash flow
$75.6m
2cps
Full year dividend
15cps$8.3m

FY18 highlights – Oboz acquisition
7
Oboz growth strategy:
»Grow North America customer base in a controlled way
»Expand into adjacent footwear categories
»Improve Obozrepresentation within the Kathmandu
Australasia retail footprint
»Grow International business by leveraging Obozand
Kathmandu customer relationships
Strategic rationale:
»Advances Kathmandu’s transformation from an
Australasian retailer to a global outdoor apparel and
equipment brand
»Obozkey customers in the US are authentic outdoor
retailers and are Kathmandu’s primary wholesale
customer targets
»Strengthens Kathmandu’s product offering in footwear
*1
66%
72%
16%
8%
18%
20%
KMD & Oboz
KMD stand-alone
ApparelFootwearEquipment & Accessories
1.The chart shows FY18 sales results including pro-forma Oboz revenue

FY18 highlights – sustainability achievements
Australasian
industry
leadership in
sustainability
8
For more information:
Kathmandu’s 2018 Sustainability Report

9
“Design original, sustainable, engineered and adaptive products”
“Be customer-centric in everything we do”
GROWTH STRATEGIES
Continuous improvement
»Brand and customer
»Store network optimisation
»Omni-channel
»Pricing and promotion
»Cost efficiency
Growth initiatives
»Kathmandu international
»Oboz
Strategy update

Transformation journey
From a retailer to a brand
From local to more globalbusiness
From bricks & mortar to
omnichannel
From opening to optimisingstores
From traditional to
digitalmarketing
From broadcasting to
engaging
10
We have been on a journey of transformation:

11
Adaptive
Sustainable
Product
Original
Engineered
We design original, sustainable, engineered and adaptive products

12
Customer
Customer-centric in everything we do
»Channel agnostic strategy
»Increased loyal customer base with nearly two million
Summit Club members
»Elevate visual merchandising and product presentation
»Significant investments in in-store customer experience
»Online re-platform (live in FY19) to enhance customer
experience and fulfilment options

13
Brand
»New Zealand heritage with deep roots
»Elevate brand distinctiveness through
product design and innovation
»Focus on our expertise in adventure travel
»Inspire our customers and engage with our
Summit Club members, leveraging social
media and digital
Authentic and inspirational

CEO’s address -Trading update and outlook
KATHMANDU
15 full weeks ended 11 November 2018:
»Total Kathmandu sales growth +8.4% vs pcp at constant exchange rates
*1
(excluding Oboz)
»Kathmandu same store sales growth +6.3% vs pcp at constant exchange rates
*1
»Same store sales growth by country: Australia +7.1%, New Zealand +5.2%
OBOZ
For the first quarter of FY19:
»Oboz sales NZD $15.7m at a gross margin of 39.8%
»Remain on track to achieve the US $7.1m EBITDA earn-out target for the 2018 calendar year
OUTLOOK 1H FY19
»First half profit expected to grow strongly on last year
»Highly dependant on the success of our Summer Sale
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1.At actual exchange rates total Kathmandu sales growth +8.3%. Kathmandu same store sales growth +6.2%
2.Average conversion rates year-to-date NZD/AUD 0.915 (FY18 0.913), NZD/GBP 0.510 (FY18 0.545), NZD/USD 0.660

Ordinary Business: Items 1 to 6

Item 1: Financial Statements
To receive and consider the Financial Report of the Company for the year ended 31 July 2018 together
with the Directors’ and Auditor’s reports.
16

Item 2: Election of Directors
To re-elect Directors of the Company, each election to be voted on separately:
Resolution 1:“That Mr. David Kirk 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.”
Resolution 2: "That Ms. Sandra McPhee, 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 herself for re-election, be re-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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Resolution 1Resolution 2
In favour142,266,255173,280,013
Against31,148,786111,358
Open/Undecided7,779,7727,782,442
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:
Resolution 3
In favour173,301,002
Against106,876
Open/Undecided7,782,442

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$579,411,
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 accordance with ASX Listing Rule 14.11.1, the Company will disregard any votes cast on Resolution 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 express instructions 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 that persons’
express instructions.
Resolution 4
In favour172,901,338
Against7,782,442
Open/Undecided459,236

Item 5: Increase capon non-executive directors’ remuneration pool
20
To consider and, if thought fit, pass the following resolution as an ordinary resolution:
“That, for the purposes of ASX Listing Rule 10.17 and NZX Main Board Listing Rule 3.5.1, the maximum aggregate
remuneration of non-executive Directors be increased by A$200,000, from the present limit of A$800,000 per annum in
aggregate to a limit of A$1,000,000 per annum in aggregate, with effect from 1 August 2018.”
Proxies:
In respect of this item of business, the following proxies have been received:
In accordance with ASX Listing Rule 14.11.1 and NZX Main Board Listing Rule 9.3.1, the Company will disregard any votes cast
on Resolution 5 by all non-executive Directors (being all Directors other than Xavier Simonet) of the Company or their
associates. 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 express instructions 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 that persons’
express instructions.
Resolution 5
In favour172,752,420
Against79,993
Open/Undecided566,838

Item 6: General Business
21
To consider such other business of the Company as may be properly brought before the meeting in accordance with the
Company’s Constitution.

Other business

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Kathmandu Holdings Ltd
223 Tuam Street, Christchurch Central 8011 249 Park Street, South Melbourne, Victoria 3205
PO Box 1234, Christchurch 8140, New Zealand PO Box 984, South Melbourne, Victoria 3205, Australia
Phone: +64 3 373 6110 Fax: +64 3 373 6116 Phone: +61 3 9267 9999 Fax: +61 3 9267 9933
kathmandu.co.nz kathmandu.com.au






23 November 2018


To: Australian Securities Exchange
New Zealand Stock Exchange


Please find attached a copy of the Chairman’s Address and Annual Meeting presentation
slides for today’s meeting.


Regards







Reuben Casey
Company Secretary

KATHMANDU HOLDINGS LTD 23 NOVEMBER 2018
CHAIRMAN’S ADDRESS TO ANNUAL GENERAL MEETING

Good morning ladies and gentlemen, I am pleased to welcome you as Chairman of Kathmandu
Holdings Ltd to our 2018 Annual Meeting.

Kathmandu had its most successful year ever in 2018, with record sales and profit.

Sales growth was balanced with improved gross margin. Sales grew by 6.1% for the Kathmandu
business and total sales including Oboz by 11.7%. A gross profit increase of 14.2%, combined
with well controlled operating expenses, resulted in excellent growth in earnings before interest
and tax of 30.9%.

Net profit increased by $12.5m or 32.9%, resulting in earnings per share for the year of 23.9 cents.

Our total dividend payout to shareholders for the full year was a record high 15 cents per share,
which is an increase of 15.4% over last year.

Key Achievements
Along with the strong financial performance, we also had a very successful year in other areas:
- We were delighted to successfully acquire Oboz, a profitable and fast growing US based
outdoor footwear brand. The combination of Kathmandu and Oboz diversifies channels to

market, geography and product mix, while also providing the opportunity to develop new
international wholesale customers for Oboz and Kathmandu;
- In UK and Europe, Kathmandu sales grew by over 80%, with wholesale and direct to
customer channels performing strongly. The wholesale channel now makes up nearly one
third of Kathmandu international sales;
- We have continued to demonstrate industry leadership in Sustainability thanks to the care
and dedication of our passionate team. Key achievements this year include being awarded
an A rating in the Ethical Fashion Report, and becoming the first company in Australasia to
gain accreditation with the Fair Labour Association.
We ended the year very well positioned for future growth.

Growth Strategies
I’ll briefly touch on our future plans before handing over to Xavier to provide more detail.
Kathmandu and Oboz are both authentic product and customer led brands. We are focused on
answering the needs of our customers by designing original, sustainable, engineered and adaptive
products.
In the year ahead, we remain committed to continuous improvement in our core markets, elevating
our brand and customer engagement against an ever-changing mix of competitors.
Beyond our core markets, we are excited by the opportunity to develop new international
wholesale channels for Oboz and Kathmandu.

People
Our two new directors, Brent and Philip have both made great contributions in their first year.
Director, Sandra McPhee who has been on the Board since IPO, has indicated she will be retiring
in calendar year 2019 and we are well advanced in the search for her replacement. I take this
opportunity in advance to thank Sandra for her wide-ranging contribution to the success of
Kathmandu over many years.
On behalf of my fellow Directors, I would also like to thank management and the wider team for
their passion and determination to deliver another very successful year. I would also like to thank
you for your support as investors throughout 2018 and in the future.
I will now ask our CEO, Xavier Simonet, to address you.
David Kirk
Chairman