Kathmandu Holdings Limited Annual Shareholder Meeting

Kathmandu Holdings Ltd
kathmanduholdings.com
1

25 November 2020

Kathmandu Holdings Limited Annual Shareholder Meeting


Chairman’s’ Address

The first item on today’s agenda is for me, as Chairman, to make some comments on the 2020 financial year.

The 2020 financial year has been transformative for Kathmandu Holdings. The thirty first of October marked
one year since the Company completed the successful acquisition of the Rip Curl brand. The Kathmandu
Holdings Group now consists of three iconic, inspirational brands, each with a loyal customer base. The
acquisition of Rip Curl diversified the Group’s geographic footprint, channels to market and seasonality profile.

Our three brands, Oboz, Rip Curl and Kathmandu, are culturally aligned with a shared focus on brand
differentiation, technical innovation, quality, customer engagement and sustainability. Our portfolio of brands
provides us with leverage opportunities in sourcing, supply chain and systems and work is well underway to
deliver operational excellence in these areas.

The Group responded quickly and decisively to the COVID-19 pandemic. The Company raised $207 million in
additional equity in April 2020 to fortify the Group’s balance sheet. Operational costs were reduced and
synergy opportunities accelerated, where possible, to minimise expenditure across the Group’s business
operations. As a result, the Company ended its financial year on 31 July 2020 well positioned for future
opportunities with significant debt facility headroom.

Our brands had the capability and capacity to rapidly scale up to meet the increase in demand for online
orders during the lockdowns which began back in March, which further confirms the Group’s strategy to deliver
an omni-channel experience for customers.

As restrictions in various countries eased throughout May and June, we saw a strong rebound in sales across
each of our three brands, reducing the inventory on hand and generating strong cashflow. The Company
ended its 2020 financial year well-positioned for the future, with a strong balance sheet.

On behalf of my fellow directors, I would like to thank management and the wider team across each of our
Brands for their outstanding resilience, flexibility and ongoing commitment throughout the challenges of the
COVID-19 pandemic.

I would also like to thank all our shareholders for their continued support over the past 12 months and into the
future.

I will now ask our Group CEO, Xavier Simonet, to address you.




ENDS

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25 November 2020

Kathmandu Holdings Limited Annual Shareholder Meeting

Group CEO presentation

Slide 4: Group CEO’s address
Thank you David. Good morning everyone and thank you for joining us at today’s Annual Meeting.

Slide 5: Rip Curl acquisition was transformational
The 2020 financial year was certainly a unique year, whereby we have had to navigate very
challenging conditions. However, it was also a transformational year for the Kathmandu Group, with
the acquisition of Rip Curl being completed in October last year, positioning our group as a truly
global outdoor, lifestyle and sports company that is underpinned by three iconic, inspirational brands
with loyal customers.
Rip Curl has brought to the Kathmandu Group key diversification benefits across geography, sales
channels, and seasonality.
Our global reach has been extended across key markets in Europe, North America, South America,
Asia, and Australasia.
The addition of Rip Curl has not only expanded the Group’s global footprint, it has also diversified the
Group’s sales channels, adding significant wholesale and licensing revenue streams. The group now
has 325 owned retail stores, 10 owned online sites, 233 licensed and joint venture stores, and over
7,500 wholesale doors globally.
Rip Curl’s summer product focus also has helped to diversify Kathmandu’s historic weighting towards
winter product categories. Following a successful winter season for Kathmandu, Rip Curl has made a
strong start to the current summer season, which I will come to shortly in the trading update.
Our expanded portfolio of brands provides us with opportunities to leverage common sourcing, supply
chain and systems, and work is well underway to deliver operational excellence in these areas.
Rip Curl and Kathmandu are now working together to enhance the customer loyalty approach for
each brand. There is a good opportunity for Rip Curl to leverage Kathmandu’s existing expertise in
this area. On the other hand, there remains a significant opportunity for Kathmandu to leverage Rip
Curl’s proven wholesale expertise, relationships and global network, to expand into new core target
markets when the time is right.
We are very pleased with the successful acquisition and integration of Rip Curl into the Group. Rip
Curl’s commitment to brand differentiation, technical excellence, innovation and sustainability is very
aligned with Kathmandu’s culture and goals.
Finally, Rip Curl is a strong cash generating brand, consistent with Kathmandu and Oboz.

Slide 6: Response to COVID-19 was swift and strong
Turning to Slide 6, which briefly covers our response to COVID-19.

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The second half of the 2020 financial year presented many challenges given the COVID-19
pandemic. Our response was swift and strong in order to manage the impacts of COVID-19 on our
business.
First and foremost, we acted to protect the safety of customers, team members, and suppliers.
We undertook a $207 million equity raising to pre-emptively fortify our balance sheet, reduce net debt
and provide liquidity. We also suspended the payment of dividends.
In conjunction with this, we enacted structural cost reduction initiatives that accelerated synergies
across the Group and underpinned around $15 million in annualised cost savings.
Our prudent operational and capital management, and the strong cash generating ability of our
brands, means we are well positioned to respond to current trading conditions, and pursue attractive
growth opportunities that may arise.

Slide 7: Sales and profit results reflect COVID-19 impact
Slide 7 shows the sales and profit results from the 2020 financial year. These results reflect the
impact of COVID-19, which we estimate to be a reduction in revenue of circa $135 million.
Total sales increased to $801.5 million, reflecting a 9 month contribution from Rip Curl since being
acquired.
Retail same store sales growth was stronger post-lockdown than pre-lockdown for both Rip Curl and
Kathmandu, when adjusted for COVID-19 related store closures. Rip Curl benefitted from an
increased opportunity for surfing while consumers worked from home, and demand for technical surf
products was particularly solid. Kathmandu had a successful winter season, as demand for core
warmth and leisure products post-lockdown was strong, and offset reduced travel-related purchases.
Pleasingly, Group online sales increased by 63% to $106.4 million, which reflected the online
capabilities we have built, and this allowed us to rapidly scale up to meet high levels of online demand
as consumer preferences changed.
Other financial metrics were lower, with underlying EBITDA of $83.4 million, reflecting the impact of
COVID-19 on trading. Underlying NPAT was $31.5 million which excludes $22.6 million in non-
recurring costs.

Slide 8: Brand strengths more relevant than ever before
Looking at slide 8, this provides an overview of the strengths of each of our brands.
Each brand is distinctive and iconic, and has strong financial fundamentals, highly credible and
technical products, and a loyal customer base.
We believe that now, more than ever, strong brand identity is critical. We certainly have this for our
three brands, with category leading products, and believe that each brand is well-positioned for
continued growth.

Slide 9: Sustainability highlights
Slide 9 highlights our priority to provide industry leadership in sustainability, particularly on circular
economy principles across all aspects of our business.
An ongoing goal for the Kathmandu brand is to achieve net zero environmental impact by 2025. In
addition, we aim for all direct suppliers to meet our minimum expectations on social and

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environmental impacts. Rip Curl has scored a B+ in the Ethical Fashion Report for the second year
running, and will continue to strive towards improvement, along with Kathmandu and Oboz.
We have focused on using recycled materials across our brands. Kathmandu uses 100% sustainable
cotton, recycles plastic bottles through the Repreve product ranges, and has moved to solution dyed
fabrics to save water. Rip Curl uses 30% recycled plastic in packaging, and uses Forest Stewardship
Council certified recycled paper in swing tags. Oboz launched the Sypes and Bozeman collections
containing recycled materials and algae bloom insoles.
Diversity has also been a focus of the Group. Kathmandu has obtained the Rainbow Tick
Certification in New Zealand, and the Oboz team’s gender diversity has improved, with 41% female
representation amongst staff now.

Slide 10: Group strategy (part 1)
Moving on to slide 10, our strategy has not changed throughout this challenging period, and in fact, it
has been further reinforced.
We are a global outdoor, lifestyle and sports company, underpinned by iconic brands and technical
products, with a focus on sustainability and customer engagement.
We have been building a portfolio of brands that provides diversification across geography, channel,
product and seasonality, which will allow us to meet global year-round demands of customers in the
outdoor, sport and lifestyle categories.
We are now starting to leverage this portfolio of brands, with plans to deliver operational excellence in
sourcing, supply chain and systems. We will continue accelerating digital transformation and driving
margin expansion through synergies, and leveraging the complementary expertise and core
capabilities of our brands.
We plan to grow each brand by maintaining a relentless focus on core customers, delivering solutions
to their needs, and enhancing customer loyalty. Each brand will continue to bring to market technical,
differentiated and sustainable products, and accelerate expansion of the direct to consumer business.
Throughout this journey we will remain true to our values. Sustainability is part of our DNA and is
ingrained in everything we do. We also embrace diversity and inclusion in the workplace and build
strong ties with local communities.

Slide 11: Group strategy (part 2)
Slide 11 shows the 6 key pillars that anchor our operating model. We adopt a decentralised model,
our structure and operating principles ensuring that our brands – Rip Curl, Kathmandu and Oboz –
have a high level of autonomy, accountability and agility within the Group requirements.
This decentralisation does not mean that our three brands operate exclusively from each other.
Rather, the brands collaborate to leverage their respective strengths and build on each other’s
competitive advantages over time.
Organic growth is the priority for the Group and we will commit significant resources to develop each
of these brands. We aim to provide a seamless customer journey and experience through relevant
commercial channels, and will accelerate the implementation of digital technology into all areas of the
business to fundamentally improve how we operate and deliver. This will all be done with the goal of
engaging core customers and driving long term loyalty to our brands.

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Slide 12: FY21 trading update and outlook
Turning to slide 12, I will now provide an update on FY21 trading, and the outlook.
Group total sales for the first quarter were up +72% on prior year, benefiting from the transformational
acquisition of Rip Curl.
On a pro-forma basis, compared to the same period last year including three months of Rip Curl prior
to its acquisition, the following trading results have been achieved:
Group direct to consumer same store sales, including online, for the 16 full weeks ended 15
November 2020 were down -7.6% adjusted for lockdown closures. Rip Curl was up +26.8%, with
retail stores trading strongly in all key global markets, where open. Kathmandu was down -26.8%
adjusted for lockdown closures, due to impacts from low footfall in CBD and tourist store locations,
and lower demand for travel-related purchases. Including store closures, Group direct to consumer
same store sales were down -24.1%, with Rip Curl down -1.7% and Kathmandu down -37.7%.
Group online sales for the 16 full weeks ended 15 November 2020 were up +37.0% above last year.

Group wholesale sales for the first quarter were down -14.4% below last year.
Group EBITDA for the first quarter was in line with last year’s pro-forma results, including government
subsidies and the realisation of cost synergies.
COVID-19 has continued to impact trading in key markets at the start of FY21. We have had 60
Greater Melbourne stores closed for most of the first quarter, and 14 Auckland stores closed for over
two weeks. Airport stores in Australia, as well as Rip Curl stores in Hawaii and Europe are still heavily
impacted by either COVID-19 related travel restrictions or government mandated lockdowns and
closures.
We are very pleased with the performance of Rip Curl in its key markets of Australia, Europe and
North America, which highlights the strength of Rip Curl’s global brand and innovative products as
more people take to surfing. Encouragingly, wholesale sell-in for Rip Curl for the second half year is
broadly at pre-COVID-19 levels.
As for Kathmandu, camping and footwear categories have over-performed, but have not
compensated for the impact of COVID-19 with low footfall in CBD and tourist locations as well as
lower travel-related purchases.
Oboz’s performance has been robust with strong sales to key accounts, and the forward order book
tracking above pre-COVID-19 levels.
We are realising the benefit of a diversified Group, with strong performance in summer weighted
product categories for Rip Curl in all key geographies, following successful winter trading for
Kathmandu.
The Group’s half year result will be dependent on the key Christmas trading period to come, and the
impact of COVID-19 on consumer sentiment remains a risk.
The Group continues to maintain a strong balance sheet and liquidity position, which means we have
the flexibility to respond to trading conditions and pursue attractive growth opportunities that may
arise. Also, the Group intends to resume dividend payments subject to market conditions and trading
performance following first half results.
That is now the end of my presentation. Thank you for your attention. I will hand back to David to run
through the formal part of the meeting.

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KathmanduHoldings
2020Annual
Meeting
25 November2020

Agenda: Annual Meeting 2020
•Item 1: Chairman’s address
•Item 2: Group CEO’s address
•Item 3: Resolutions
•Re-election of Directors
•Auditor remuneration
•Item 4: Other business
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Chairman’s address

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Group CEO’s address

Rip Curl acquisition was transformational
•Now one year since acquisition
•Three iconic, inspirational brands with loyal customers
•Delivered diversification in:
•Geography: Global reach with key markets in Europe,
North America, South America, Asia, and Australasia
•Channels to market: 325 owned retail stores, 10 owned
online sites, 233 licensed and joint venture stores, and
over 7,500 wholesale doors globally
•Seasonality: diversified exposure to seasonal product
categories
•Opportunity to leverage:
•Common sourcing, supply chain and systems
•Expertise, core capabilities and relationships of each
brand: customer loyalty and wholesale expertise
•Strong cash generating brands
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Response to COVID-19 was swift and strong
•Decisive action to:
•Protect the safety of customers, team members,
and suppliers
•Raise capital and suspend dividends
•Reduce costs and accelerate synergies
•Balance Sheet well positioned to respond to current
trading conditions and pursue attractive growth
opportunities that may arise
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Sales and profit results reflect COVID-19 impact
1.Excluding the impacts of IFRS 16 and one-off transaction and abnormal costs
2.Adjusted to remove stores that were not able to open for a comparable week because of COVID-19 lockdowns
•COVID-19 revenue impact estimated at c. $135m
•FY20 result included 9 months of Rip Curl
•Retail same store sales growth
*2
stronger post-lockdown than pre-lockdown for
both Rip Curl and Kathmandu
•Online capacity and capability to rapidly scale up to meet demand. Group online
sales up 63% to $106.4m, 15.7% of direct to consumer sales
•Statutory NPAT $8.9m includes $18.0m one-off transaction costs, $4.6m
restructuring costs, and $2.6m impact from the implementation of IFRS 16
leasing standard (in total $22.6m impact net of tax)
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GROUP SALES
up 48.7% to $801.5m
UNDERLYING EBITDA
*1
down 15.3% to $83.4m
UNDERLYING EBIT
*1
down 32.5% to $56.2m
UNDERLYING NET PROFIT AFTER TAX
*1
Down 44.5% to $31.5m

Brand strengths more relevant than everbefore
•Iconic, inspirational,and
authenticbrand
•Renowned for high quality
technical surfingproducts
•Globaldistribution
•Diversified revenue streams
across both wholesale and retail
channels
•Strong cash contribution,$34m
for 9 months ofownership
•Leading outdoor brand in
Australasia
•Original, sustainable,engineered,
and adaptiveproducts
•Loyal customers with 2.2million
active Summit Clubmembers
•Omni channelcapability
•Proven track record oflong-term
sales and profitgrowth
•History of significantcash
generation
•Positionedforinternational
expansion(post COVID-19)
•Established and distinctive
American Montana-basedbrand
•Focused, efficient productrange
with significant expansion
potential
•Positive operating cashflow
•Efficient operatingstructure
•Direct to consumeronline
channel launchingFY21
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Sustainability highlights
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BOTTLES WORTH OF FRESH WATER
SAVED BY MOVING TO SOLUTION
M
40
PLASTIC BOTTLES
RECYCLED THROUGH
OUR REPREVE PRODUCT
30
M+


OBTAINED THE
RAINBOW TICK
CERTIFICATION IN
NEW ZEALAND FOR
EMBRACING DIVERSITY
& INCLUSION
100%
COTTON
SUSTAINABLE
I
N

O
U
R

R
A
N
G
E
OF RIP CURL
PLANET DAY
ANNIVERSARY
20YEAR
TH

FSC
CERTIFIED
RECYCLED PAPER
SWING TAGS ON
PRODUCTS
30%
RECYCLED PLASTIC
IN OUR POLYBAGS
SCORED A B+ IN THE
ETHICAL FASHION REPORT
TWO YEARS RUNNING
B+
COLLABORATED WITH KATHMANDU ON
DEVELOPING OUR SUSTAINABILITY JOURNEY
3.3
MILLION
TREES PLANTED SINCE
THE COMPANY STARTED
LAUNCHED THE SYPES AND BOZEMAN
COLLECTIONS MADE WITH RECYCLED
MATERIALS AND ALGAE
41%
IMPROVED GENDER DIVERSITY
IN OUR TEAM NOW WITH
FEMALE
REPRESENTATION

Group strategy
We are a global outdoor, lifestyle and sports company underpinned by iconic brands,
technical products and afocus onsustainability
Build a portfolio of brandsthat:
•Provide diversification in
geography, channel to market,
product category and
seasonality
•Meet the global year round
needs of customers in the
outdoor, sport and lifestyle
categories
Diversifythe
Business
Leverage the
Portfolio
•Maintain relentless focus on
core customers by delivering
solutions to their needs
•Bring to market technical,
differentiated and sustainable
products
•Create global brands
•Accelerate expansion of the
direct to consumer business
•Enhance customer loyalty
Grow Each
Brand
Promote Our
Values
•Sustainability is ingrained in
everything we do
•We embrace diversity and
inclusion in the workplace
•Building up strong ties with
local communities is in our
ethos
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•Deliver operational excellence
in sourcing, supply chain and
systems
•Accelerate digital
transformation
•Drive margin expansion
through synergies and
leveraging the complementary
expertise and core capabilities

Group strategy
OrganicGrowth
We place priority on
organic growth and
commit significant
resources todevelop
each of ourbrands
Seamless
customerjourney
and experience
Customercentricity
requiresthatwe offer a
great experience through
relevantcommercial
channels
Digital
Acceleration
The integrationof
digitaltechnology
into allareas
of the business
fundamentally
changes how we
operate anddeliver
Enhanced
Customer
Loyalty
We engage core
customers and invest
behinddriving long
term loyalty to our
brands
Decentralised
Organisation
Our structure and
operating principles
ensure that the
brands have a high
level of autonomy,
accountability and
agility within the
Group requirements
Synergies
The brands leverage
respective strengths
and build on each
other’s competitive
advantages over time
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Our operating model is anchored by 6 pillars

FY21 trading update and outlook
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Trading update
•Group total sales for the first quarter ended 31 October 2020 were+72% above last year, benefiting from the transformational acquisition of Rip Curl
•On a pro-forma basis (relative to the same period last year including three months of Rip Curl pre-acquisition):
•Group direct to consumer same store sales, including online, for the 16 full weeks ended 15 November 2020:
•-7.6% adjusted for lockdown closures
*1
, with Rip Curl +26.8% and Kathmandu -26.8%
•-24.1% unadjusted, with Rip Curl -1.7% and Kathmandu -37.7%
•Group online sales for the 16 full weeks ended 15 November 2020 were +37.0% above last year
•Group wholesale sales for the first quarter ended 31 October 2020 were -14.4% below last year
•Group EBITDA for the first quarter was in line with last year, including government subsidies and the realisation of cost synergies
•COVID-19 has continued to impact key markets at the start of FY21
•Rip Curl: strong sales performance in key markets. Wholesale order book well placed for the second half year at broadly pre-COVID-19 levels
•Kathmandu: camping and footwear categories have over-performed, but have not compensated for COVID-19 impacts, with low footfallin CBD and tourist
locations, and lower demand for travel-related purchases
•Oboz: robust performance with strong sales to key accounts, and the forward order book tracking above pre-COVID-19 levels
Outlook
•Realisingthe benefit of a diversified Group: strong performance in summer weighted product categories for Rip Curl, following a successful winter for Kathmandu
•Half year result dependent on the key Christmas trading period
•The impact of COVID-19 on consumer sentiment remains a risk
•Strong balance sheet and liquidity position
•Intention to resume dividend payments following first half result, subject to market conditions and trading performance
1.Adjusted same store sales removes stores that were not able to open this year for a comparable week because of COVID-19 lockdowns

Resolutions
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Resolution 1
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That John Harvey be re-elected as a Director of the Company.”
Proxies:
In respect of this item of business, the following proxies have been received:
Resolution 1
In favour401,936,051
Against2,183,203
Open2,293,826
The Board unanimously supports resolution 1 and recommends that shareholders vote in favour

Resolution 2
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That Philip Bowman be re-elected as a Director of the Company.”
Proxies:
In respect of this item of business, the following proxies have been received:
Resolution 2
In favour401,579,416
Against2,535,063
Open2,293,826
The Board unanimously supports resolution 2 and recommends that shareholders vote in favour

Resolution 3
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That Brent Scrimshaw be re-elected as a Director of the Company.”
Proxies:
In respect of this item of business, the following proxies have been received:
Resolution 3
In favour362,286,891
Against41,821,568
Open2,293,826
The Board unanimously supports resolution 3 and recommends that shareholders vote in favour

Resolution 4
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:
“That the Board be authorised to fix the remuneration of the Company’s auditor for the ensuing year.”
Proxies:
In respect of this item of business, the following proxies have been received:
Resolution 4
In favour403,835,439
Against355,465
Open2,287,726
The Board unanimously supports resolution 4 and recommends that shareholders vote in favour

Other business
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