1H FY2019 Interim Report

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com

Kathmandu Holdings Limited

New Zealand Stock Exchange Listing Rules
Disclosure
Half Year Report

For the period ending 31 January 2019




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

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com
Appendix 1

Kathmandu Holdings Limited

Results for Announcement to the Market

Reporting Period: 6 months to 31 January 2019
Previous Reporting Period: 6 months to 31 January 2018

Amount (000’s) Percentage Change
Revenues from ordinary activities $NZ 232,024 13.3%
Profit from ordinary activities after tax attributable
to security holder
$NZ 13,954 13.7%
Net profit attributable to security holder $NZ 13,954 13.7%

Interim Dividend Amount per Security Imputed Amount per
Security
Interim Dividend $NZ 0.04 NIL
Record Date 7 June 2019
Payment Date 21 June 2019

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 2019 contained in the Interim Report.

Net Tangible Assets per Security
2019
$
2018
$
Net tangible assets per security 0.08 0.22

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 Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com
Kathmandu Holdings Limited
Kathmandu posts record first half result
•Sales increased by 13.3% to NZ$232.0m
•Gross profit increased by 9.4% to NZ$141.9m
•Reported EBIT NZ$20.9m. Normalised EBIT increased by 10.0% to NZ$19.8m
•Reported NPAT NZD$14.0m. Normalised NPAT increased by 7.3% to NZ$13.2m
•Diversifying to a brand-led, multi-channel business
•Oboz achieved acquisition earn-out target and continued strong sales and profit growth
•Summit Club grows to two million members
•Interim dividend NZ 4.0 cents per share
Kathmandu Holdings Limited (ASX/NZX: KMD) today announced normalised net profit after tax (NPAT) of
NZ$13.2 million for the six months ended 31 January 2019, an increase of NZ$0.9 million compared with the
prior corresponding period. Excluding NZ$1.1m abnormal income relating to the GST treatment of reward
vouchers, normalised earnings before interest and tax (EBIT) increased from NZ$18.0 million to NZ$19.8
million for the same period.
Summary of Group Results
NZD $m
1H FY19
Reported
1H FY2019
Normalised
1H FY2018
Change %
Sales
232.0 232.0 204.8
27.2 13.3%
Gross Profit
141.9 141.9 129.7
12.2 9.4%
EBITDA
28.7 27.6 25.1
2.5 10.0%
EBIT
20.9 19.8 18.0
1.8 10.0%
NPAT
14.0
13.2 12.3 0.9 7.3%
Chief Executive Xavier Simonet commented
“Kathmandu is on a journey of transformation. While we are focused on driving growth for our core Kathmandu
business in Australia and New Zealand, we are also step by step diversifying our channels, brand and markets,
particularly through Oboz which has delivered strong growth.
Following strong same store sales growth at the start of our financial year, Kathmandu experienced softer
trading conditions in Australia and New Zealand over the Christmas and Boxing Day period. Despite sales
being below expectation, it was pleasing to see an improvement in retail gross margin.”

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com
Kathmandu Update

Sales
Total sales grew by 2.7% in Australia, our largest market. New Zealand sales were 1.9% below last year,
partially offset by 50bps / 0.5% improvement in gross margin. Online sales comprise 9.5% of direct to
consumer sales over the last 12 months.


Sales Growth
1H FY2019
Same stores
1H FY2019
Total sales
Australia (AUD)
1.2% 2.7%
New Zealand (NZD)
-2.2% -1.9%
Kathmandu Group (excl. Oboz)
(constant exchange rates)
0.0% 1.3%

Note: Same store sales are for the 26 weeks ending 27 January 2019


Gross Margin
Retail gross margin increased 0.8% points from 63.4% in 1H FY18 to 64.2% in 1H FY19. The gross margin
increase resulted from less promotional discounting, leading to higher average selling prices.


Oboz Update

The Oboz business continued to grow strongly. Oboz is the fastest growing major hike footwear brand at REI,
North America’s largest outdoor retailer, and the fastest growing footwear brand in Kathmandu stores.


NZD $m
1H FY2019
pro forma
1H FY2018
pro forma
Change
%
Sales 29.2 21.0 38.6%
Gross margin 39.3% 39.7%
EBIT 4.7 2.7 77.1%

Pro forma sales growth for 1H FY2019 was 38.6%, leading to 77.1% EBIT growth. The earn-out EBITDA
target of USD $7.1m to December 2018 was achieved. Oboz is expected to be neutral to Group earnings per
share (“EPS”) in FY2019, and EPS accretive in FY2020.

The overall North America contribution to first half FY2019 Group EBIT was $3.7m after accounting for
consolidation adjustments and Kathmandu wholesale North America initial costs.

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com
Operating Expenses

Kathmandu operating expenses increased by 4.3% at constant exchange rates, and by $2.4m at actual
exchange rates. Incremental operating expenses arising from Oboz and Kathmandu North America totaled
$7.3m.

Operating expenses (excluding depreciation)

1H FY2019
NZD $m
1H FY2018
NZD $m
Rent 34.4 33.2
% of Sales

14.8% 16.2%
Other operating expenses 79.9 71.4
% of Sales

34.5% 34.9%
Total operating expenses 114.3 104.6
% of Sales 49.3% 51.1%



Balance Sheet, Cash Flow, Dividend

Inventory
Total Group inventory has increased from $111.9m at the end of July 2018 to $130.1m as at 31 January 2019.

1H FY2019
NZD $m
FY2018
NZD $m
1H FY2018
NZD $m

Kathmandu inventory

118.1

101.2

84.2

Oboz inventory

12.0

10.7

-

Group inventory

130.1

111.9

84.2


The Kathmandu inventory balance includes $6m to support Kathmandu International, and early deliveries of
core styles for Autumn and Winter. Clearance stock is currently in line with last year.

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 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
kathmanduholdings.com
Other Financial Information

NZ$7.0m was invested in capital projects, primarily in improving our store network through relocations and
refurbishments. Operating cash flow was impacted by the increase in inventory, and timing of supplier and tax
payments. The Oboz acquisition in April 2018, added c. $60m to net debt.

1H FY2019
NZD $m
1H FY2018
NZD $m
Capital Expenditure 7.0 8.7
Operating Cash Flow -16.2 16.9
Net Debt 79.2 17.0
Net Debt to Equity 16.5% 4.9%


Interim Dividend


An interim dividend of NZ$ 4.0 cents per share will be paid to shareholders on the register as at 7 June 2019.
The dividend will not be franked for Australian shareholders, and will not be imputed for New Zealand
shareholders. The final dividend is expected to be fully franked and fully imputed.


Outlook

Chief Executive Xavier Simonet commented:

“We have continued our journey of transforming Kathmandu from a leading Australasian retailer to a brand-led
global multi-channel business. Diversification of channel, brand, product, geography and seasonality has
progressed in the first half, particularly through the success of Oboz.

We remain focused on achieving sales and profit growth in our core Australasian business to fund investment
for future growth. Our full year result is still very dependent on the key promotions to come, in which we will be
cycling a successful second half last year.

We will continue to inspire our customers by creating original, sustainable, engineered, and adaptive products,
and by engaging with our customers and providing a superior customer experience.

Oboz continues to grow strongly and we are beginning to build international Kathmandu brand equity through
authentic outdoor wholesale channels. International growth remains a very important opportunity.”

ENDS

Media
Helen McCombie
Citadel-MAGNUS
Tel: + 61 2 8234 0103
Investors
Reuben Casey
Chief Operating and Financial Officer
Tel: +64 3 968 6166

---

KATHMANDU HOLDINGS LIMITED
Interim
Report 2019

Directors’
Report
Signed in accordance with a resolution
of the directors:
David Kirk
Chairman
Xavier Simonet
Managing Director and
Chief Executive Officer
The Directors of Kathmandu Holdings Limited present the Interim Report for the
Company and its controlled entities for the half year ended 31 January 2019.
Review of Operations
The consolidated net profit after tax for the period was NZ$14.0 million (2018:
NZ$12.3 million). Sales for the period were NZ$232.0 million (2018: NZ$204.8 million).
A review of the operations of the Company and its controlled entities is set out in
the accompanying Company’s media release of 26 March 2019. The key line items
in the half year results were:
Sales up 13.3% to NZ$232.0m
NPAT up NZ$1.7m to NZ$14.0m
EBIT up NZ$2.9m to NZ$20.9m
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 25 March 2019, the Directors declared a dividend of NZ 4.0 cents per share.
This will not be imputed for New Zealand shareholders and will not be franked for
Australian shareholders.
2KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Consolidated Statement of
Comprehensive Income
NoteUnaudited Six
Months Ended
31 January 2019
NZ$’000
Unaudited Six
Months Ended
31 January 2018
NZ$’000
Audited
Year Ended
31 July 2018
NZ$’000
Sales revenue232,024204,811497,437
Cost of sales(90,160)(75,117)(181,961)
Gross profit 141,864129,694315,476
Other income41,115--
Selling expenses4(77,968)(74,939)(155,677)
Administration and general expenses4(36,332)(29,659)(70,038)
(113,185)(104,598)(225,715)
Earnings before interest, tax, depreciation and amortisation28,67925,09689,761
Depreciation and amortisation4(7,755)(7,092)(15,151)
Earnings before interest and tax20,92418,00474,610
Finance income541347
Finance expenses(1,506)(237)(1,106)
Finance costs - net4(1,452)(224)(1,059)
Profit before income tax 19,47217,78073,551
Income tax expense(5,518)(5,503)(23,019)
Profit after income tax13,95412,27750,532
Other comprehensive income/(loss) that may be
recycled through profit and loss:
Movement in cash flow hedge reserve (1,524)5028,820
Movement in foreign currency translation reserve(6,583)5,47510,518
Other comprehensive income/(loss) for the period, net of tax(8,107)5,97719,338
Total comprehensive income for the period
attributable to shareholders5,84718,25469,870
Basic earnings per share 6.2 cps6.0 cps23.9 cps
Diluted earnings per share6.1 cps6.0 cps23.7 cps
Weighted average basic ordinary shares outstanding (‘000)225,862204,185211,261
Weighted average diluted ordinary shares outstanding (‘000)227,714205,800213,187
3KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Consolidated Statement of
Changes in Equity
Unaudited Six
Months Ended
31 January 2019
NZ$’000
Unaudited Six
Months Ended
31 January 2018
NZ$’000
Audited
Year Ended
31 July 2018
NZ$’000
Total equity at the beginning of the period 420,382327,100327,100
Total comprehensive income for the period5,84718,25469,870
Dividends paid(24,836)(18,195)(27,208)
Issue of share capital1,23197148,702
Movements in share based payments reserve(1,001)(570)1,918
Total equity at the end of the period401,623327,560420,382
4KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Consolidated
Balance Sheet
NoteUnaudited As at
31 January 2019
NZ$’000
Unaudited As at
31 January 2018
NZ$’000
Audited As at
31 July 2018
NZ$’000
ASSETS
Current assets
Cash and cash equivalents4,6503,0018,146
Trade and other receivables11,3734,93713,453
Inventories130,05084,241111,929
Derivative financial instruments3,366235,076
Current tax asset8051,205-
Other financial assets1322,210-22,180
Total current assets172,45493,407160,784
Non-current assets
Property, plant and equipment1160,94164,22863,514
Intangible assets384,624283,084390,319
Total non-current assets445,565347,312453,833
Total assets618,019440,719614,617
LIABILITIES
Current liabilities
Trade and other payables60,74751,04672,770
Derivative financial instruments1,3486,444156
Current tax liabilities--9,968
Other financial liabilities1321,739-21,994
Total current liabilities83,83457,490104,888
Non-current liabilities
Derivative financial instruments4510962
Interest bearing liabilities783,85020,01439,500
Deferred tax48,66735,54649,785
Total non-current liabilities132,56255,66989,347
Total liabilities216,396113,159194,235
Net assets401,623327,560420,382
EQUITY
Contributed equity - ordinary shares251,113201,180249,882
Reserves(11,825)(17,595)(2,717)
Retained earnings162,335143,975173,217
Total equity401,623327,560420,382
5KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Consolidated Statement
of Cash Flows
NoteUnaudited Six
Months Ended
31 January 2019
NZ$’000
Unaudited Six
Months Ended
31 January 2018
NZ$’000
Audited
Year Ended
31 July 2018
NZ$’000
Cash flows from operating activities
Cash was provided from:
Receipts from customers235,097206,288502,703
Income tax received-156156
Interest received541347
235,151206,457502,906
Cash was applied to:
Payments to suppliers and employees234,566178,780406,508
Income tax paid15,3389,90718,710
Interest paid1,4048562,087
251,308189,543427,305
Net cash inflow/(outflow) from operating activities(16,157)16,91475,601
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment1--
Cash was applied to:
Purchase of property, plant and equipment5,1717,38614,300
Purchase of intangibles1,8131,3312,394
Acquisition of subsidiaries84-82,746
Investments in other financial assets--22,180
7,0688,717121,620
Net cash (outflow) from investing activities(7,067)(8,717)(121,620)
Cash flows from financing activities
Cash was provided from:
Proceeds of loan advances70,21449,626148,815
Proceeds from share issue--48,702
70,21449,626197,517
Cash was applied to:
Dividends24,83618,19527,208
Repayment of loan advances25,62440,296119,907
50,46058,491147,115
Net cash inflow/(outflow) from financing activities19,754(8,865)50,402
Net (decrease) in cash held(3,470)(668)4,383
Opening cash and cash equivalents 8,1463,5373,537
Effect of foreign exchange rates(26)132226
Closing cash and cash equivalents4,6503,0018,146
6KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Reconciliation of Net Profit After
Taxation with Cash Inflow From
Operating Activities
Unaudited Six
Months Ended
31 January 2019
NZ$’000
Unaudited Six
Months Ended
31 January 2018
NZ$’000
Audited Year
Ended 31 July
2018
NZ$’000
Profit after income tax 13,95412,27750,532
Movement in working capital:
(Increase) / decrease in trade & other receivables1,6601,4755,272
(Increase) / decrease in inventories(20,516)6,971(13,873)
Increase / (decrease) in trade and other payables(10,290)(7,207)10,884
Decrease in tax liability(10,639)(4,729)6,405
(39,785)(3,490)8,688
Add non cash items:
Depreciation5,8515,48611,576
Amortisation of intangibles1,9041,6063,575
Foreign currency translation of working capital balances181(30)(431)
Increase / (decrease) in deferred taxation818481(1,944)
Employee share based remuneration5764021,489
Loss on disposal of property, plant and equipment3441822,116
9,6748,12716,381
Cash inflow/(outflow) from operating activities(16,157)16,91475,601
7KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

1. General Information
Kathmandu Holdings Limited (the Company) and its subsidiaries (together the Group) is a designer, marketer, retailer and
wholesaler of clothing, footwear and equipment for travel and adventure. It operates in New Zealand, Australia, United Kingdom
and the USA.
The Company is a limited liability company incorporated and domiciled in New Zealand. Kathmandu Holdings Limited is a
company registered under the Companies Act 1993 and is a FMC reporting entity under Part 7 of the Financial Markets Conduct
Act 2013. 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 26 March 2019, 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 2019 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 2018 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
Other than the new accounting standards adopted during the period as set out in Note 15, the consolidated interim financial
statements have been prepared using the same accounting policies and methods of computation as those used in the audited
financial statements of Kathmandu Holdings Limited for the year ended 31 July 2018.
4. Expenses
Unaudited Six
Months Ended
31 January 2019
NZ$’000
Unaudited Six
Months Ended
31 January 2018
NZ$’000
Audited
Year Ended
31 July 2018
NZ$’000
Profit before tax includes the following expenses:
Depreciation5,8515,48611,576
Amortisation1,9041,6063,575
Employee benefit expense46,55743,50891,513
Rental expense34,37233,21967,429
Finance costs – net consist of:
Interest income(54)(13)(47)
Interest expense8945181,389
Other finance costs437224652
Net exchange loss on foreign currency borrowings175(505)(935)
1,4522241,059
Other income relates to a refund received from the IRD resulting from the treatment of GST on reward vouchers.
9KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

5. Segmental Information
The Group operates in four geographical areas: New Zealand, Australia, North America and Rest of World. The North American
segment was established upon acquisition of Oboz Footwear LLC in April 2018.
31 January 2019Australia
NZ$’000
New Zealand
NZ$’000
North America
NZ$’000
Rest of World
NZ$’000
Other
NZ$’000
Total
NZ$’000
Total segment sales137,45763,16029,2764,797-234,690
Inter-segment sales(216)(45)(597)(1,808)-(2,666)
Sales from external customers137,24163,11528,6792,989-232,024
EBITDA12,03813,7394,240163(1,501)28,679
Depreciation and software amortisation(4,389)(2,806)(541)(19)-(7,755)
EBIT7,64910,9333,699144(1,501)20,924
Income tax expense2,0412,98097614(493)5,518
Total segment assets246,807324,703129,0807,352(89,923)618,019
Total assets includes:
Non-current assets170,73623,063108,5264143,236445,565
Additions to non-current assets3,8112,7345184-7,067
Total segment liabilities108,94780,20322,76020,162(15,676)216,396
31 January 2018Australia
NZ$’000
New Zealand
NZ$’000
North America
NZ$’000
Rest of World
NZ$’000
Other
NZ$’000
Total
NZ$’000
Total segment sales138,36265,099-4,352-207,813
Inter-segment sales(803)(849)-(1,350)-(3,002)
Sales from external customers137,55964,250-3,002-204,811
EBITDA12,55214,075-(206)(1,325)25,096
Depreciation and software amortisation(4,134)(2,957)-(1)-(7,092)
EBIT8,41811,118-(207)(1,325)18,004
Income tax expense2,6623,217-(74)(302)5,503
Total segment assets237,219238,944-1,802(37,246)440,719
Total assets includes:
Non-current assets178,66025,415--143,237347,312
Additions to non-current assets5,8472,870---8,717
Total segment liabilities96,80915,572-14,436(13,658)113,159
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, footwear 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.
10KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

6. Related Party Disclosures
All transactions with related parties were in the normal course of business and provided on commercial terms. No amounts owed
to related parties have been written off or forgiven during the period.
7. Interest Bearing Liabilities
Unaudited
As at
31 January 2019
NZ$’000
Unaudited
As at
31 January 2018
NZ$’000
Audited
As at
31 July 2018
NZ$’000
Non-current portion83,85020,01439,500
The Group has a multi option facility agreement with Commonwealth Bank of Australia and ASB Bank Limited, with A$45 million
repayable in full on 1 August 2022, A$15 million repayable in full on 1 August 2021, and a multi-option facility agreement with
Bank of New Zealand with $40 million and $30 million repayable in full on 21 March 2020 and 21 March 2021, respectively.
Interest is payable based on the BKBM rate (NZD borrowings), the BBSY rate (AUD borrowings), or the applicable short term rate
for interest periods less than 30 days, plus a margin of up to 1.30%. There are no assets pledged as security in relation to the
unsecured debt.
The covenants entered into by the Group require specified calculations of Group earnings before interest, tax, depreciation and
amortisation (EBITDA) plus lease rental costs to exceed total fixed charges (net interest expense and lease rental costs) at the
end of each half during the financial year. Similarly EBITDA must be no less than a specified proportion of total net debt at the
end of each six month interim period. The calculations of these covenants are specified in the bank facility agreement of 19
December 2011 and have been complied with at 31 January 2019.
The current interest rates, prior to hedging, on the term loans ranged between 2.56% - 3.34% (2018: 2.35% - 2.48%).
8. Contingent Liabilities
There are no contingent liabilities as at 31 January 2019 (2018: nil).
9. Contingent Assets
There are no contingent assets as at 31 January 2019 (2018: nil).
10. Commitments
(a) Operating lease commitments
Group as lessee:
Rent expenses reported in these financial statements relate to non-cancellable operating leases. The future commitments on
these leases are as follows:
Unaudited
As at
31 January 2019
NZ$’000
Unaudited
As at
31 January 2018
NZ$’000
Audited
As at
31 July 2018
NZ$’000
Due within 1 year55,24761,14955,707
Due within 1-2 years44,63650,73345,728
Due within 2-5 years86,00987,75186,729
Due after 5 years27,90637,57035,013
213,798237,203223,177
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.
11KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

(b) Capital commitments
Capital commitments contracted for at balance date are:
Unaudited
As at
31 January 2019
NZ$’000
Unaudited
As at
31 January 2018
NZ$’000
Audited
As at 31 July
2018
NZ$’000
Property, plant and equipment3,5151,1622,461
Intangible assets3,0891,424748
11. Property Plant & Equipment
Unaudited
Ended 31
January 2019
NZ$’000
Unaudited
Ended 31
January 2018
NZ$’000
Audited
Ended 31 July
2018
NZ$’000
Additions5,170)7,386)14,300)
Acquisition of businesses-)-)663)
Disposals(334)(182)(2,038)
12. Financial Risk Management And Financial Instruments
(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
2018. 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.
12KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Total
NZ$' 000
Assets
Derivative financial instruments3,366
Total assets3,366
Liabilities
Derivative financial instruments1,393
Total liabilities1,393
13. Acqusition Of Oboz Footwear LLC
In April 2018 Kathmandu Holdings Limited through its wholly-owned subsidiary Kathmandu US Holdings LLC acquired 100%
of the equity interests in Oboz Footwear LLC. The Group has not yet finalised the purchase price allocation for the acquisition
of Oboz.
Under the sale and purchase agreement, the Group is required to pay a proportionate contingent earn out of up to USD
$15,000,000 (NZD $21,739,000) based on an EBITDA target for the year ending 31 December 2018, this is held in escrow and
included in Other Financial Assets. The Group is in the process of finalising the actual EBITDA for the year ending 31 December
2018 and as at 31 January 2019 expects to pay out the full USD $15,000,000. This liability is recorded in Other Financial Liabilities.
14. Events Occurring After Balance Date
There are no events after balance date which materially affect the information within the financial statements.
15. New Accounting Standards
(a) New standards first applied in the period
New Accounting
Standard
Effective Date
Adopted by the
Group
Summary of
Changes
Group Impact
NZ IFRS 9
Financial
Instruments
1 August 2018Addresses the
classification,
measurement and
de-recognition of
financial assets
and financial
liabilities and new
rules for hedge
accounting.
The Group has reviewed its financial assets and liabilities and
noted no material impact from the adoption of NZ IFRS 9.
The Group has assessed which business models apply to its
financial assets and classified these into the appropriate
categories under NZ IFRS 9. The only reclassification rising is the
financial assets previously classified as loans and receivables now
fall into the amortised cost category.
The financial assets classified in the amortised cost category are
now subject to the new impairment model which requires the
recognition of impairment provisions based on expected credit
losses (ECL). Under NZ IAS 39 an incurred credit loss model was
applied. Based on the Group’s assessment of historical provision
rates and forward-looking analysis, there is no material financial
impact on the impairment provisions.
NZ IFRS 9 does not impact the classification or measurement of
the Group’s financial liabilities.
The new hedge accounting rules align the accounting for hedging
instruments more closely with the group’s risk management
practices. The Group has confirmed that its current hedge
relationships qualify as continuing hedges under NZ IFRS 9.
Accordingly, there is no significant impact on the accounting
treatment for the Group’s hedging relationships. The nature and
extent of the Group’s disclosure note in relation to its hedging
relationships will change in the consolidated financial statements
for the period ending 31 July 2019.
The following table presents the group’s assets and liabilities that are measured at fair value at 31 January 2019.
13KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

New Accounting
Standard
Effective Date
Adopted by the
Group
Summary of
Changes
Group Impact
NZ IFRS 15
Revenue from
Contracts with
Customers
1 August 2018Establishes
the reporting
principles relating
to the nature,
amount, timing
and uncertainty of
revenue and cash
flows arising from
a contract with a
c u s to m e r.
The group has reviewed its revenue recognition policies upon
adoption of NZ IFRS 15 and noted no material impact.
Work focused on segregating the different revenue streams that exist
within the business. The majority of revenue is made up of in store
transactions with 20% earned through online and wholesale sales.
The following matters were identified to be relevant to the Group
under NZ IFRS 15:
- A customers’ right of return in determining revenue to be
recognised. Return rates for sales were analysed and it
was determined that there was no material impact from
adoption of NZ IFRS 15.
- For online sales and wholesale sales, whether arranging the
delivery of goods is a separate performance obligation as
it may impact the timing, measurement and classification
of revenue recognised. After assessment of the Group’s
current accounting policies there is no material impact
from adoption of NZ IFRS 15.
New Accounting
Standard
Effective Date
Adopted by the
Group
Summary of
Changes
Group Impact
NZ IFRS 16
Leases
1 August 2019Introduces a single
lessee accounting
model requiring
a lessee to
recognise assets
and liabilities for
all leases with
a term of more
than 12 months
where they are
not considered
low value. A right-
of-use asset will
be recognised
representing
the right to use
the underlying
leased asset and
a lease liability
representing
the obligations
to make lease
payments. As a
consequence, a
lessee recognises
depreciation of
the right-of-use
asset and interest
on the lease
liability.
This standard will materially impact the Group’s consolidated
financial statements at transition and in future years, as the
Group’s operating leases (primarily in relation to store, distribution
centre and office leases) will be recognised on balance sheet.
The implementation plan for the new leases standard is
significantly progressed in a number of areas including;
- Identification of leases and contracts that could be
determined to include a lease;
- Collation of lease data required for the calculation of the
impact assessment;
- Identification of necessary changes to systems and
processes required to enable reporting and accounting in
accordance with the new standard; and
- Selection of appropriate accounting policies around
transition method, discount rates and estimates of lease-
term for leases with options.
Note 10(a) reflects that as at 31 January 2019 the Group had
lease commitments for operating leases of $214 million. A
preliminary assessment indicates that lease arrangements will
meet the definition of a lease under NZ IFRS 16, and hence the
group will recognise a right-of-use asset and a corresponding
liability in respect of all these leases upon the application of NZ
IFRS 16.
The impact on the consolidated statement of comprehensive
income upon adoption is expected to be a decrease in selling
expenses and administration and general expenses. While
depreciation and amortisation and finance costs will increase.
The impact of these items is expected to be significant however
currently management do not expect the overall effect on profit
after income tax to be material.
The financial impact is dependent on the composition of the lease
portfolio at the time of transition. Therefore it is not yet practical to
determine a reliable estimate of the financial impact on the group.
(b) Standards, interpretations and amendments to published standards that are not yet effective


PricewaterhouseCoopers, PwC Centre, Level 4, 60 Cashel Street, PO Box 13-244, City East, Christchurch,
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 interim report
We have reviewed the accompanying interim report of Kathmandu Holdings Limited (the
Company) and its controlled entity (the Group) on pages 3 to 14, which comprise the
consolidated balance sh
eet as at 31 January 2019, and the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated
statemen
t 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 interim report
The Directors are responsible on behalf of the Group for the preparation and fair presentation of
the interim report in accordance
with International Accounting Standard 34 Interim Financial
Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34
Interim Financia
l Reporting (NZ IAS 34) and for such internal control as the Directors
determine is necessary to enable the preparation and fair presentation of interim report that are
free from material misstatement, whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion on the accompanying interim report based on our
review. We conducted our review in accordance with the New Zealand Standard on Review
Engagements 2410 Review 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 interim report, taken as a whole, are not prepared
in all mate
rial respects, in accordance with IAS 34 and NZ IAS 34. As the auditors of the
Company, NZ SRE 2410 requires that we comply with the ethical requirements re
levant to the
audit of the annual financial statements.
A review of the interim report in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries,
primarily of persons responsible for finan
cial and accounting matters, and applying analytical
and other review procedures. The procedures performed in a review are substantially less than
those perform
ed 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 this interim report.
We are independent of the Group. Our firm carries out other services for
the Group in the areas
of store turnover certificates and a covenant compliance audit. The provision of these other
services has not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that this
interim report of the Group do not present fairly, in all material respects, the financial position
of the Group as at 31 January 2019, and of its financial performance and cash flows for the
period then ended, in accordance with IAS 34 and NZ IAS 34.
14KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

PricewaterhouseCoopers, PwC Centre, Level 4, 60 Cashel Street, PO Box 13-244, City East, Christchurch,
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 interim report
We have reviewed the accompanying interim report of Kathmandu Holdings Limited (the
Company) and its controlled entity (the Group) on pages 3 to 14, which comprise the
consolidated balance sheet as at 31 January 2019, and the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated
statemen
t 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 interim report
The Directors are responsible on behalf of the Group for the preparation and fair presentation of
the interim report in accordance with International Accounting Standard 34 Interim Financial
Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34
Interim Financia
l Reporting (NZ IAS 34) and for such internal control as the Directors
determine is necessary to enable the preparation and fair presentation of interim report that are
free from material misstatement, whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion on the accompanying interim report based on our
review. We conducted our review in accordance with the New Zealand Standard on Review
Engagements 2410 Review o
f 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 interim report, taken as a whole, are not prepared
in all material respects, in accordance with IAS 34 and NZ IAS 34. As the auditors of the
Company, NZ SRE 2410 requires that we comply with the ethical requirements re
levant to the
audit of the annual financial statements.
A review of the interim report in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs 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 perform
ed 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 this interim report.
We are independent of the Group. Our firm carries out other services for the Group in the areas
of store turnover certificates and a covenant compliance audit. The provision of these other
services has not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that this
interim report of the Group do not present fairly, in all material respects, the financial position
of the Group as at 31 January 2019, and of its financial performance and cash flows for the
period then ended, in accordance with IAS 34 and NZ IAS 34.
15KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

PwC
Who we report to
This report is made solely to the Group’s Shareholders, as a body. Our review work has been
undertaken so that we might state to the Group’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 thi
s
report, or for the conclusion we have
formed.

For and on behalf of:





Chartered Accountants
Christchurch

26 March 2019



16KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

Statutory Information
Group Structure
Kathmandu Holdings Limited owns 100% of the following companies:
Milford Group Holdings Limited
Kathmandu Limited
Kathmandu Pty Limited
Kathmandu (UK) Limited
Kathmandu US Holdings LLC
Oboz Footwear LLC
Directors’ Details
David Kirk Chairman, Non-Executive Director
Xavier Simonet Managing Director and Chief Executive Officer
John Harvey Non-Executive Director
Sandra McPhee Non-Executive Director
Philip Bowman Non-Executive Director
Brent Scrimshaw Non-Executive Director
Executives’ Details
Xavier Simonet Chief Executive Officer
Reuben Casey Chief Operating and 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



PwC
Who we report to
This report is made solely to the Group’s Shareholders, as a body. Our review work has been
undertaken so that we might state to the Group’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 thi
s report, or for the conclusion we have
formed.

For and on behalf of:





Chartered Accountants
Christchurch

26 March 2019



17KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

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:
Level 1, 333 Collins Street
Melbourne, VIC 3000
Australia
Postal Address:
Locked Bag A14
Sydney, South NSW 1235
Australia
Telephone:
+61 2 8280 7111
Investor enquiries:
+61 2 8280 7111
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.
18KATHMANDU HOLDINGS LIMITED INTERIM REPORT 2019

KATHMANDU HOLDINGS LIMITED
INTERIM REPORT 2019
kathmanduholdings.com

---

1H FY19
Results
Presentation
March 2019

2
1H FY19 results summary
Trading
»Group Sales up 13.3% to NZD $232.0m
»Gross margin improvement in AU +60 bps and NZ +50 bps, North America -40 bps
»Operating expenses reduced by 1.8% as a percentage of sales
Earnings
»Normalised EBIT up 10.0% to $19.8m; reported EBIT $20.9m
»Normalised NPAT up 7.3% to $13.2m; reported NPAT $14.0m
Balance Sheet
Cash Flow
»Inventory $130m includes $18m to support International, plus early 2H FY19 deliveries
»Operating cashflow -$16.2m
»Interim dividend NZ 4 cents per share
North
America
»North America 1H FY19 sales $28.7m and EBIT $3.7m
»Oboz pro forma sales growth 1H FY19 +38.6% YOY, and EBIT growth +77.1% YOY
»Acquisition earn-out target achieved

3
1.Strategy update
2.Result overview
3.Key line items
4.Segment results
5.Balance Sheet, Cash Flow, Dividend
6.Summary
7.Questions
A.Appendices
Contents

4
1. Strategy update

5
Strategy
Transformation from a leading Australasian retailer to a
brand-led global multi-channel business
Focus on:
»Superior customer experience
»Authentic and inspirational brand
»Distinctive product
Transform through:
»Accelerate growth opportunities
»Diversify brand, channel, product
»Operating efficiencies

6
Superior customer experience
Update:
»Over two million active Summit Club members, contributing
over 75% of direct to consumer sales. This provides future
opportunities to engage with our loyal customer base
»Online re-platform launched Feb 19, enabling future
enhancement of the customer experience, and development of
fulfilment options
»Customer experience in our Australasian store network
continues to be improved through refurbishments, relocations
and new stores as opportunities arise
Customer-centric in everything we do:
»Channel agnostic strategy
»Create a seamless customer multi-channel experience
»Elevate visual merchandising and product presentation
»Enhance the customer service experience and staff
product knowledge

7
Authentic and inspirational Brand
Authentic and inspirational:
»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,
digital, and exclusive events
Update:
»Brand association improving as a result of the “World Ready”
brand campaign
»34% increase in Summit Club participation in volunteering, run
clubs, adventure sponsorship, and international treks
»Social media reach increased by 33%, with an increasingly
global audience
»Successful sponsorship of the Coast to Coast, one of New
Zealand’s most iconic multisport events

8
Distinctive Product
»Recycled materials: REPREVE
TM
helps us divert plastic bottles from going into landfill by upcycling
them into fabric. This year we are on track to recycle at least 7.5 million plastic bottles across many
equipment and apparel products
»Stockton jacket: made of three layers of recycled materials. Includes our very first bio-based waterproof
membrane partly derived from corn. This is a sustainable alternative to traditional waterproof membranes
which are typically made using fossil fuels
We design original, sustainable, engineered and adaptive products:

Oboz
9
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
Update:
»Fastest growing major hike footwear brand at REI, North
America’s largest outdoor retailer
»Fastest growing footwear brand in Kathmandu stores
»Amy Beck appointed as President of Oboz / Kathmandu
North America
»Oboz founder John Connelly to continue as brand
ambassador

International
10
International growth:
»Build a sustainable business that delivers profitable growth
»Commitment to capital light model
»Controlled distribution through wholesale and online
»Develop brand equity through authentic outdoor channels
»Focus on long term partnerships
»Leverage our New Zealand heritage, expertise in adventure
travel and sustainability focus
Update:
»For northern hemisphere Autumn/Winter 2019, initial orders
received from several new European and North American
outdoor retailers, including trials with REI (North America) and
Blacks (UK)
»We delivered increased sell through at GO Outdoors (UK) in
Autumn/Winter 2018. They are now rationalising their SKU
range and suppliers. KMD products will only be available online
from Autumn/Winter 2019 for GO Outdoors

11
2.Result overview

Result overview
NZD$m
*1
1H FY191H FY18Var $Var %
SALES232.0204.827.213.3%
GROSS PROFIT
Gross margin
141.9
61.2%
129.7
63.3%
12.29.4%
OPERATING EXPENSES
% of Sales
(114.3)
49.3%
(104.6)
51.1%
9.79.3%
EBITDA NORMALISED
*2
EBITDA margin %
27.6
11.9%
25.1
12.3%
2.510.0%
EBIT NORMALISED
*3
EBIT margin %
19.8
8.5%
18.0
8.8%
1.810.0%
NPAT NORMALISED13.212.30.97.3%
NPAT REPORTED14.012.31.713.8%
1.1H FY19 NZD/AUD conversion rate 0.938 (1H FY18: 0.911), 1H FY19 NZD/GBP conversion rate 0.525 (1H FY18: 0.532), 1H FY19 NZD/USD conversion rate 0.663
2.Normalised results exclude $1.1m abnormal income from a tax refund relating to the GST treatment of reward vouchers ($0.8m after tax). Refer to Appendix 1 for a
reconciliation to statutory financial statements
3.EBIT YOY exchange rate translation impact in 1H FY19: -$0.4m (1H FY18 +$0.7m)
4.Rounding differences may arise in totals, both $ and %
12
»North America sales contribution $28.7m
»Excluding North America, sales increased
+1.3% at constant exchange rates
»North America contribution to Group EBIT
$3.7m

3.Key line items

Sales
»Sales growth by geography (at constant exch. rates):
»AU +2.7%
»NZ -1.9%
»Rest of World -1.9%
»North America (Oboz pro forma) +38.6%
»Sales growth by channel (at constant exch. rates):
»Retail stores +1.1%
»Online +2.4%
»Wholesale pro forma +38.2%
»Online sales 9.5% of direct to consumer sales over the
last 12 months
179.4
196.0
196.3
204.8
232.0
1H FY151H FY161H FY171H FY181H FY19
Group Sales (NZD $m)
4yr CAGR 6.6%
104.9
114.2
120.8
125.3
128.7
1H FY151H FY161H FY171H FY181H FY19
Australia (AUD $m)
4yr CAGR 5.2%
65.2
68.2
68.7
64.3
63.1
1H FY151H FY161H FY171H FY181H FY19
New Zealand (NZD $m)
4yr CAGR -0.8%
1.Country sales totals exclude inter-company sales
14
SALES: +13.3% to $232.0m

Same Store Sales result
0.9%
4.8%
4.3%
3.1%
5.0%
1.2%
1.9%
-6.3%
1.2%
-2.2%
AustraliaNew Zealand
1H FY151H FY161H FY171H FY181H FY19
0.6%
2.7%
5.8%
3.8%
0.6%
3.4%
2.7%
-0.8%
-2.0%
0.0%
GROUP - Actual RatesGROUP - Constant Rates
1H FY151H FY161H FY171H FY181H FY19
»Flat at constant exchange rates
»Stores -0.2%
»Online +2.7%
»-2.0% actual exchange rates
1.Measurement period 1H FY19: 26 weeks ended 27 January 2019 compared to 26 weeks ended 28 January 2018
2.Same store sales measurement includes Online and all stores from their 53rd week of trading
15
SAME STORE SALES: flat at constant rates

Gross Margin
61.4%
56.0%
64.6%
60.2%
63.6%
58.2%
65.4%
59.7%
66.0%
60.2%
39.5%
1H FY151H FY161H FY171H FY181H FY19
AU NZ NORTH AMERICA
»Retail gross margin long-term target range 61% to 63% remains unchanged
»1H FY19 retail gross margin 64.2%. Gross margin improvement from less
promotional discounting leading to a higher average selling price
»2H FY19 promotional plan and margin pressure expected to deliver lower
gross margin YOY in AU and NZ
16
59.3%
62.8%
61.6%
63.3%
61.2%
GROUP
Australia
64%
Rest of World
1%
North
America
8%
New
Zealand
27%
1H FY19 SHARE OF BUSINESS
(GROSS PROFIT $)

Cost of doing business
NZD$m1H FY191H FY18Var $Var %
Rent
% of Sales
34.4
14.8%
33.2
16.2%
1.23.6%
Other operating expenses
% of Sales
79.9
34.5%
71.4
34.9%
8.511.9%
Total operating expenses
*1
% of Sales
114.3
49.3%
104.6
51.1%
9.79.3%
Depreciation
% of Sales
7.8
3.4%
7.1
3.5%
0.79.9%
Cost of doing business
% of Sales
122.1
52.7%
111.7
54.5%
10.49.3%
»Channel diversification into wholesale delivering
overall operating cost structure improvement
»Incremental operating expenses from Oboz $7.3m
including $0.6m Kathmandu North America setup
investment
»Rent increases continue to be challenged with
landlords
»Retail labour wage rate increases being balanced
with sales growth expectations
»Online fulfilment labour realising the efficiency
benefits of infrastructure investment
1.1H FY19 reported total operating expenses would be $2.1m higher if reported at constant exchange rates
2.Rounding differences may arise in totals, both $ and %
17
OPERATING EXPENSES: +9.3% to $114.3m

Earnings summary
1.Normalised results exclude $1.1m abnormal income from a tax refund relating to the GST treatment of reward vouchers. Refer to Appendix 1 for a
reconciliation to statutory financial statements
2.EBIT YOY exchange rate translation impact in 1H FY19: -0.4m (1H FY18 +$0.7m)
18
0.6
15.1
14.8
18.0
19.8
1H
FY15
1H
FY16
1H
FY17
1H
FY18
1H
FY19
EBIT
*1,2
$19.8m
+10.0%
6.8
21.9
21.5
25.1
27.6
1H
FY15
1H
FY16
1H
FY17
1H
FY18
1H
FY19
EBITDA
*1
$27.6m
+10.0%
-1.8
9.4
10.0
12.3
13.2
1H
FY15
1H
FY16
1H
FY17
1H
FY18
1H
FY19
NPAT
*1
$13.2m
+7.3%
4.8%5.1%6.0%5.7%
NPAT %
0.3%7.7%7.5%8.8%8.5%
EBIT %EBITDA %
3.8%11.2%11.0%12.3%11.9%

4.Segment results

Australia
»Gross margin increased 60bps / 0.6% of sales
»Total operating expenses (incl. depreciation):
»1H FY19 60.0% of sales
»1H FY18 59.5% of sales
»3 stores opened
»2 stores closed
»5stores refurbished
AUD $m1H FY191H FY18Var %
Sales128.7125.32.7%
Same store sales growth1.2%1.9%
EBIT (trading result)
*2
7.77.44.1%
EBIT margin %6.0%5.9%
Store count119116
-0.8
4.6
4.1
7.4
7.7
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
20
SALES: +2.7% to $128.7m

New Zealand
»Gross margin increased 50bps / 0.5% of sales
»Total operating expenses (incl. depreciation):
»1H FY19 45.6% of sales
»1H FY18 42.0% of sales
»2 stores refurbished
NZD $m1H FY191H FY18Var %
Sales63.164.3-1.9%
Same store sales growth-2.2%-6.3%
EBIT (trading result)
*2
9.211.4-19.3%
EBIT margin %14.6%17.7%
Store count4847
5.5
12.1
12.3
11.4
9.2
1H FY151H FY161H FY171H FY181H FY19
EBIT (trading result) NZD $m
21
SALES: -1.9% to $63.1m
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

North America
22
1.Oboz intercompany sales $0.6m eliminated. Includes US website sales $0.1m
2.A reconciliation of EBIT (trading result) to the financial statements is included in Appendix 2
3.Rounding differences may arise in totals, both $ and %
»Oboz 1H FY19 pro forma sales growth 38.6%, EBIT growth 77.1%
»EBITDA earn-out target USD $7.1m to December 2018 achieved
»Oboz expected to be neutral to Group earnings per share (EPS) in FY19,
and EPS accretive in FY20
»North America contribution to 1H FY19 Group EBIT $3.7m made up of:
»Oboz pro forma EBIT $4.7m, less
»amortisation of customer relationship recognised on acquisition -$0.4m
»Kathmandu Wholesale North America set-up investment -$0.6m
NORTH AMERICA (NZD $m)1H FY19
Sales
*1
28.7
EBIT (trading result)
*2
3.7
EBIT margin %12.9%
OBOZ (NZD $m) pro forma1H FY191H FY18Var %
Sales29.221.038.6%
Gross margin %39.3%39.7%
EBIT4.72.777.1%
EBIT margin %16.2%12.7%

Rest of World
»Direct to consumer sales $1.8m, c. 60% of total
sales
»Wholesale $1.2m, c. 40% of total sales
»Gross margin improvement in both wholesale
and direct to consumer channels
»Total operating expenses (incl. depreciation):
»1H FY19 49.9% of sales
»1H FY18 54.7% of sales
»Reduced promotional and labour costs
NZD $m1H FY191H FY18Var %
Sales3.03.0-0.4%
EBIT (trading result)
*2
0.1(0.2)
EBIT margin %4.9%-6.9%
Store count11
-2.8
-0.4
-0.2-0.2
0.1
1H FY151H FY161H FY171H FY181H FY19
EBIT (trading result) NZD $m
23
SALES: NZD $3.0m in line with last year
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

24
5.Balance Sheet, Cash Flow, Dividend

Balance Sheet
Balance Sheet (NZD $m)1H FY191H FY18
Inventories130.184.2
Property, plant and equipment60.964.2
Intangible assets384.6283.1
Other assets37.76.2
Total assets (excl. cash)613.3437.7
Net interest bearing liabilities and cash79.217.0
Other non-current liabilities0.00.1
Current liabilities132.593.0
Total liabilities (net of cash)211.7110.1
Net assets401.6327.6
Key Ratios1H FY191H FY18
Stock Turns
*1
1.84x1.87x
Net Debt to Equity
*2
16.5%4.9%
Fixed Charge Cover
*3
2.28x2.09x
ROIC
*4
16.1%17.5%
»Inventory increase to support Kathmandu International,
inclusion of Oboz, and early deliveries of core styles for
Autumn and Winter
»Clearance stock in line with last year
»Oboz acquisition during FY18 added c. $60m to net debt
1.COGS (rolling 12 months) / Average Inventories YOY
2.Net Debt / (Net Debt + Equity)
3.(EBITDA + Rent)/(Rent+ Net Finance Costs excl. FX)
4.EBIT/(Net Debt + Equity)
5.Rounding differences may arise in totals, both $ and %
25
1.58x
1.57x
1.62x
1.87x
1.84x
1H FY151H FY161H FY171H FY181H FY19
Stock Turns

Cash Flow
Cash Flow (NZD $m)1H FY191H FY18
NPAT14.012.3
Change in working capital(39.8)(3.5)
Change in non-cash items9.68.1
Operating cash flow(16.2)16.9
Key line items:
Net interest paid (including facility fees)(1.4)(0.8)
Income taxes paid(15.3)(9.8)
Capital expenditure(7.0)(8.7)
Dividends paid(24.8)(18.2)
Increase/(Decrease) in borrowings44.69.3
Operating cash flow -$16.2m:
»Change in working capital includes the increase in
inventory, and timing of supplier and tax payments
Capital expenditure $7.0m:
»Stores $4.6m
»3 new stores
»7 refurbishments
»Systems and Infrastructure $2.0m
»Online platform upgrade
»North America $0.4m
. Rounding differences may arise in totals, both $ and %
26

Dividend
»NZ 4.0 cents per share interim dividend (1H FY18 NZ 4.0 cps)
»Dividend will not be imputed for New Zealand shareholders
»Dividend will not be franked for Australian shareholders
»Record date 7 June 2019
»Payment date 21 June 2019
»Final dividend is expected to be fully franked and fully imputed
27
33
444
5
8
9
11
8
11
13
15
FY15FY16FY17FY18FY19
InterimFinal
Dividends (NZ cents per share)

Foreign currency
»1H FY19 USD hedging rates c. 1% above 1H FY18
»2H FY19 USD hedging rates level with 2H FY18
»1H FY20 USD hedging rates c. 5% below 1H FY19
»Forward hedging position:
»Longest dated hedges March 2020
»Rolling cover applied 12 months forward
»No hedging NZD/AUD» 1H FY17 -15% » 2H FY17 -4%
FORWARD HEDGING POSITIONFY18FY19FY20
AUD/USDEffective Rate0.7590.7640.726
NZD/USDEffective Rate0.7090.7070.678
28

29
6. Summary

Summary
30
»By fuelling growth and diversifying our group, the Oboz acquisition has advanced our transformation from a
leading Australasian retailer to a brand-led global multi-channel business
»We have made significant progress to move Kathmandu from being a retailer to being an authentic brand that
designs original, sustainable, engineered and adaptive products
»Notwithstanding the challenging retail environment we are focussed on sales and profit growth in our core
Australasian markets through:
»engaging with and inspiring our customers
»strengthening the Kathmandu brand credentials, emphasising our expertise in travel and adventure and
our New Zealand heritage
»distinctive product
»continued cost control
»In Kathmandu and Oboz, we have two great brands with significant international growth potential

31
7. Questions

Appendix 1 –Reconciliation of reported results
32
1.Per the Kathmandu Holdings Limited Interim Report 2019
2.Abnormals include $1.1m tax refund for GST treatment of reward vouchers ($0.8m after tax)
NZD$m
1H FY19
Reported
*1
Abnormals
*2
1H FY19
Normalised
SALES232.0232.0
GROSS PROFIT
Gross margin
141.9
61.2%
141.9
61.2%
OTHER INCOME1.1(1.1)-
OPERATING EXPENSES
% of Sales
(114.3)
49.3%
(114.3)
49.3%
EBITDA
EBITDA margin %
28.7
12.4%
(1.1)27.6
11.9%
EBIT
*3
EBIT margin %
20.9
9.0%
(1.1)19.8
8.5%
NPAT14.0(0.8)13.2

Appendix 2 –Reconciliation of segment EBIT trading results
33
1H FY18 ($’000)Australia
New
Zealand
North
America
Rest of
World
OtherTotal
EBIT per financial statements (NZD)8,41811,118-(207)(1,325)18,004
Internal charges at full year allocation basis(773)773----
Internal charges not trading related
*2
(NZD)520(520)----
EBIT (trading result) (NZD)8,16511,371-(207)(1,325)18,004
EBIT (trading result) (local currency)7,438
1H FY19 ($’000)Australia
New
Zealand
North
America
Rest of
World
OtherTotal
EBIT per financial statements (NZD)7,64910,9333,699144(1,501)20,924
Abnormals
*1
(NZD)(1,115)---(1,115)
Internal charges not trading related
*2
(NZD)584(584)----
EBIT (trading result) (NZD)8,2339,2343,699144(1,501)19,809
EBIT (trading result) (local currency)7,723
1.Abnormals include $1.1m tax refund for GST treatment of reward vouchers
2.Internal charges not trading related include arm’s length margins charged for internal services