1H FY2021 Interim Results

Results announcement



Kathmandu Holdings Ltd
kathmanduholdings.com

1
Results for announcement to the market
Name of issuer Kathmandu Holdings Limited
Reporting Period 6 months to 31 January 2021
Previous Reporting Period 6 months to 31 January 2020
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$410,713 12.9%
Total Revenue $410,713 12.9%
Net profit/(loss) from continuing
operations
$21,962 217.7%
Total net profit/(loss) $22,279 194.0%
Interim Dividend
Amount per Quoted Equity
Security
$0.02
Imputed amount per Quoted
Equity Security
NIL
Record Date 21
st
May 2021
Dividend Payment Date 4
th
June 2021
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.14 -$0.34
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
The interim results are based on accounts which have been subject to
review. Refer to accompanying unaudited financial statements.
Authority for this announcement
Name of person

authorised to
make this announcement
Frances Blundell
Contact person for this
announcement
Frances Blundell
Contact phone number +64 3 968 6110
Contact email address companysecretary@kathmandu.co.nz
Date of release through MAP

Tuesday, 23 March 2021

Unaudited financial statements accompany this announcement.

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Kathmandu Holdings Ltd
kathmanduholdings.com
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23 March 2021
(All amounts in NZ$ unless otherwise stated)


Strong Rip Curl performance underpinned 1H Group result

• Rip Curl achieved strong sales and profits, despite COVID-19 impacts in key global
markets, validating the Group’s diversification strategy
• Kathmandu impacted by COVID-19 related travel restrictions and store closures
• Oboz sales growth and strong forward order book, benefiting from successful product
innovation strategy and diversification of customer base
• Step change in Group online penetration reflecting improved digital capabilities and
changing consumer preferences
• Robust balance sheet with low net debt, and clean inventory position
• Dividend resumes, with NZ 2.0 cents per share interim dividend


Kathmandu Holdings Limited (ASX/NZX: KMD) is pleased to announce its results for the six months
ended 31 January 2021 (1H FY21).

1H FY21 key highlights (vs 1H FY20):

• Sales up 12.9% to $410.7 million, including a full six month contribution from Rip Curl
• Step change in Group online penetration, with online representing 12.7% of direct to consumer
(DTC) sales (1H FY20: 8.8%)
• Underlying EBITDA up 19.0% to $48.2 million (excluding the impact of IFRS 16 and one-off
transaction and abnormal costs)
• Statutory NPAT of $22.3 million
• Underlying NPAT up 32.8% to $23.1 million (excluding the impact of IFRS 16 and one-off
transaction and abnormal costs)
• Robust balance sheet, with $10.1 million net debt, reflecting working capital management
strategies
• Resumption of dividends, with NZ 2.0 cents per share interim dividend declared (fully franked
for Australian shareholders, and not imputed for New Zealand shareholders)

Commenting on the 1H FY21 results, Group CEO Xavier Simonet said: “Despite operating in
challenging conditions over the first half due to the substantial impacts from COVID-19, Rip Curl
delivered an outstanding first half result, validating the Group’s diversification strategy.”

“Benefiting from increased participation in surfing in Australia, Europe and the USA, Rip Curl
achieved strong sales and profits despite COVID-19 trading restrictions, reflecting the brand’s
technical product focus and strong consumer engagement. Pleasingly, Rip Curl’s wholesale order
book is back above pre-COVID-19 levels.”

“Kathmandu was particularly impacted by COVID-19 related travel restrictions, with reduced
demand for insulation and rainwear resulting from a lack of international travellers to the Northern
Hemisphere.”

“Over the first half, we implemented a rapid response to changes in consumer preference resulting
from COVID-19. To respond to increased participation in local travel and adventure, our brands

Kathmandu Holdings Ltd
kathmanduholdings.com
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adjusted their focus to product categories in high demand, such as wetsuits and surfboards for Rip
Curl, and camping and footwear for Kathmandu. Omni-channel capability allowed our brands to
capture record demand for the online channel, with online penetration now making up almost 13% of
the Group’s direct to consumer sales.”

Group financial performance

Statutory Underlying
1

NZ$ million
2
1H FY21 1H FY21 1H FY20 Var %
Sales 410.7 410.7 363.7 12.9%
Gross Profit 242.5 242.5 218.9 10.8%
Operating Expenses (147.2) (194.3) (178.4) 8.9%
EBITDA 95.4 48.2 40.5 19.0%
EBIT 39.2 33.4 28.9 15.5%

The 1H FY21 Group results included a full 6 months of Rip Curl, and strong performance from the
Rip Curl brand. Net government wage assistance amounted to $15.2 million.

Rip Curl: Strong sales and profit performance despite COVID-19 impacts

Underlying
1


NZ$ million
1H FY21
Aug 20 to Jan 21
1H FY20
Nov 19 to Jan 20

Var %
Sales 251.1 134.9 86.1%
Gross Profit 150.3 80.7 86.3%
Operating Expenses (101.7) (62.3) 63.2%
EBITDA 48.7 18.4 164.3%
EBIT 44.0 16.1 173.9%

Despite the impacts from COVID-19, Rip Curl contributed $48.7 million to Group underlying EBITDA
during 1H FY21, delivering a gross margin 40 bps (0.4%) higher than the comparable six month
period last year, as a result of a higher mix of DTC sales.

Total global sales were 4.3% below the comparable six month period last year, including three
months of sales pre-Kathmandu ownership. COVID-19 restrictions continued to impact the sales
performance of Rip Curl stores in airports, Melbourne, Hawaii, Bali and parts of Europe. The
wholesale sell-in period was disrupted during the global lockdowns in April and May 2020, for
deliveries in October to December 2020.

Sales growth was achieved in key markets of Australia, USA and Europe, despite COVID-19 trading
restrictions, highlighting the strength of the Rip Curl brand and product range in core surf
geographies around the world. In addition, wholesale order books are back above pre-COVID-19
levels.

DTC same store sales
3
growth (comprising owned retail stores and online) was up 21.0% adjusted
for COVID-19 lockdowns and 7.4% overall. Online sales underwent a step change, up 79% vs the
comparable six month period last year, and comprised 11.2% of DTC sales.

1
Underlying results exclude the impact of IFRS 16 leases and one-off transaction costs
2
1H FY21 NZD/AUD conversion rate 0.931 (1H FY20: 0.955), 1H FY21 NZD/GBP conversion rate 0.517 (1H FY20: 0.508), 1H FY21
NZD/USD conversion rate 0.684 (1H FY20: 0.641)
3
Same store sales are measured at constant currency for the 27 full weeks ended 31 January 2021

Kathmandu Holdings Ltd
kathmanduholdings.com
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Kathmandu: sales impacted by COVID-19 travel restrictions and store closures

Underlying
1

NZ$ million 1H FY21 1H FY20 Var %
Sales 127.3 195.5 (34.9%)
Gross Profit 81.7 125.0 (34.7%)
Operating Expenses (81.4) (106.7) (23.7%)
EBITDA 0.2 18.3 (98.6%)
EBIT (7.1) 10.5 (167.4%)

Multiple headwinds affected Kathmandu’s performance over 1H FY21, with 27 Greater Melbourne
stores closed for over 11 weeks, and 14 Auckland stores closed for two weeks. Kathmandu was
also impacted by low footfall in shopping centres, CBD stores, and tourist locations. While there was
strong demand for camping products, there was reduced demand for insulation and rainwear due to
a lack of international travellers to the Northern Hemisphere. Same store sales
3
were down 30.0%
adjusted for COVID-19 lockdowns and 35.4% overall.

Kathmandu’s gross margin of 64.2% was slightly above 1H FY20 (64.0%). Operating expenses
include the benefits from restructuring, rent abatements, and net government wage assistance.

Online penetration increased from 10.5% of sales in 1H FY20 to 14.4% of sales in 1H FY21.


Oboz: sales growth despite COVID-19, driven by product innovation

Underlying
1

US$ million 1H FY21 1H FY20 Var %
Sales 22.1 21.3 3.8%
Gross Profit 7.2 8.5 (15.1%)
Operating Expenses (4.6) (5.2) (11.8%)
EBITDA 2.6 3.3 (20.5%)
EBIT 2.5 3.2 (20.7%)

Oboz delivered sales growth of 3.8%, underpinned by a focus on product innovation. Gross margin
was impacted by significant one-off air freight costs of US$1.1 million.

The forward order book is well above pre-COVID-19 levels, and Oboz will be launching a direct to
consumer online store imminently, to drive further sales growth.


Resumption of dividends

Reflecting the Group’s robust balance sheet, the Directors have resolved to resume payment of
dividends, and have declared an interim dividend of NZ 2.0 cents per share, fully franked for
Australian based shareholders, and not imputed for New Zealand shareholders. The record date for
this dividend is 21 May 2021, and the payment date is 4 June 2021.

Kathmandu Holdings Ltd
kathmanduholdings.com
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Sustainability

Commenting on the Group’s sustainability initiatives, Mr Simonet said: “We’ve made carbon
neutrality a priority, because the planet comes first. During the first half, the Kathmandu brand
reached its goal of being carbon neutral. Achieving this milestone four years ahead of schedule is
something we are very proud of.”


Outlook

Commenting on the outlook for the Group, Mr Simonet said:


“Whilst navigating the ongoing impacts from COVID-19, our long-term strategy remains unchanged.
During the second half we are focused on the strong execution of Kathmandu’s winter season in
Australasia. We will also see the benefits from synergies and cost-out initiatives across the Group,
which we expect to deliver around $15 million of annual savings in FY21.”

“We have a number of key initiatives planned for the second half to further connect with our
customers to drive increased sales. We will begin implementing a loyalty program at Rip Curl, and
Oboz is launching a direct to consumer online store. Kathmandu continues to invest in
personalisation and data analytics capability, all with the aim of driving best in class customer
interactions.”

“Our brands remain well positioned to capitalise on consumer trends that have seen increased
participation in surfing, camping and hiking. Kathmandu enters the traditionally strong winter season
well prepared. Oboz investment in new product sees it enter the second half with an order book well
above pre-COVID-19 levels. Rip Curl continues to trade in line with the strong first half trends, and
wholesale order books are above pre-COVID-19 levels.”

Investor briefing

An investor call will be hosted by David Kirk (Chairman), Xavier Simonet (Group CEO) and Chris
Kinraid (Group CFO) at 8.30am AEDT / 10:30am NZDT today, Tuesday 23 March 2021. For those
wishing to participate, please dial one of the numbers below and provide the conference ID to the
operator:

Australia Toll Free: 1800 558 698
Australia Local: +61 2 9007 3187
New Zealand Toll Free: 0800 453 055
United States: +1 855 881 1339

Conference ID: 10012888

This announcement has been authorised for release to ASX by the Board of Directors of Kathmandu
Holdings Limited.

- ENDS -

Kathmandu Holdings Ltd
kathmanduholdings.com
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For further information, please contact:

Investors
Eric Kuret, Market Eye
P: +61 417 311 335
E: eric.kuret@marketeye.com.au

Media
Helen McCombie, Citadel-MAGNUS
P: + 61 2 8234 0103

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KATHMANDU HOLDINGS LIMITED

INTERIM REPORT 2021

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
2
DIRECTORS’ REPORT
The Directors of Kathmandu Holdings Limited present the Interim Report for the Company and its controlled entities for the half year
ended 31 January 2021.
Review of Operations
The consolidated net profit after tax for the period was NZ$22.3 million (2020: NZ$7.6 million). Sales for the period were NZ$410.7
million (2020: NZ$363.7 million).
A review of the operations of the Company and its controlled entities is set out in the accompanying Company’s media release of 23
March 2021. The key line items in the half year results were:
-Sales up 12.9% to NZ$410.7m
-EBIT up NZ$16.6m to NZ$39.2m
-NPAT up NZ$14.7m to NZ$22.3m
Seasonality
Due to the seasonal nature of the Company and its controlled entities’ activities, the activities in the second half of the year
historically provide a larger portion of the sales and net profit for the full year.
Impact of COVID-19
The Group has reviewed the impact on the business from the continually evolving COVID-19 situation. During the half year, trade at
a number of the Group’s stores continued to be disrupted by COVID-19 related travel restrictions and government mandated
lockdowns and closures. Refer to note 4 of the Financial Statements for further disclosure about the impact of COVID-19.
Signed in accordance with a resolution of the Directors:
David Kirk Xavier Simonet
Director Director

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020
NZ$’000 NZ$’000 NZ$’000
Sales revenue 5 410,713 363,654 801,524
Cost of sales (168,196) (144,754) (334,493)
Gross profit 242,517 218,900 467,031
Other income 5 20,891 628 27,369
Selling expenses 3, 6 (82,296) (78,980) (169,272)
Administration and general expenses 3, 6 (85,757) (73,284) (175,670)
(147,162) (151,636) (317,573)
Earnings before interest, tax, depreciation, and amortisation 95,355 67,264 149,458
Depreciation and amortisation 3, 6 (56,168) (44,666) (103,585)
Earnings before interest and tax 39,187 22,598 45,873
Finance income 453 29 449
Finance expenses (9,648) (9,147) (23,822)
Finance costs - net 3, 6 (9,195) (9,118) (23,373)
Profit before income tax 29,992 13,480 22,500
Income tax expense 3 (7,713) (5,902) (13,632)
Profit after income tax 22,279 7,578 8,868
Profit for the period attributable to:
Shareholders of the company 21,962 6,912 8,134
Non-controlling interest 317 666 734
Other comprehensive income/(loss) that may be recycled through profit and loss:
Movement in cash flow hedge reserve (4,194) (407)(9,259)
Movement in foreign currency translation reserve (16,648) (2,877) 258
Movement in other reserves 14 - (61)
Other comprehensive (loss) for the period, net of tax (20,828) (3,284) (9,062)
Total comprehensive income for the period 1,451 4,294 (194)
Total comprehensive income for the period attributable to:
Owners of the company 1,165 3,769 (932)
Non-controlling interest 286 525 738
Basic earnings per share (restated)
3
3.1 cps 1.9 cps 1.8 cps
Diluted earnings per share (restated)
3
3.1 cps 1.9 cps 1.8 cps
Weighted average basic ordinary shares outstanding (‘000)
(restated)
3
709,001 394,363 493,347
Weighted average diluted ordinary shares outstanding (‘000)
(restated)
3
711,578 395,472 494,582

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
Capital
Cash Flow
Hedge
Reserve
Foreign
Currency
Translation
Reserve
Share
Based
Payments
Reserve
Other
Reserves
Retained
Earnings
Non-
controlling
Interest
Total
Equity
NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000
Balance as at 31 July 2019 251,113 4,118 (12,272) 1,983 -197,120-442,062
Profit after tax - - - - -8,134734 8,868
Other comprehensive income -(9,259)254 -(61)-4(9,061)
Dividends paid - - - - -(27,209)-(27,209)
Issue of share capital 375,267 - - (1,666) - - - 373,601
Share based payment expense - - - 378 - - - 378
Deferred tax on share-based - - - (87)-- -(87)
payment transactions
Non-controlling interest on - - - - - - 3,335 3,335
acquisition
Disposal of non-controlling
interest
- - - - - - (66) (66)
Transition to NZ IFRS 16 - - - - -(12,630)-(12,630)
Balance as at 31 July 2020 626,380 (5,141) (12,018) 608 (61)165,4154,007 779,190
Profit after tax - - - - -21,962317 22,279
Other comprehensive income -(4,194)(16,617) -14-(31)(20,828)
Dividends paid - - - - -- - -
Issue of share capital - - - - - - - -
Share based payment expense - - - 667 - - - 667
Deferred tax on share-based
payment transactions
- - - (269)-- -(269)
Balance as at 31 January 2021 626,380 (9,335) (28,635) 1,006 (47)187,3774,293 781,039

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
5
CONSOLIDATED BALANCE SHEET
Note Unaudited
As at
31 January
2021
Unaudited
As at
31 January
2020
Audited
As at
31 July
2020
NZ$’000 NZ$’000 NZ$’000
ASSETS
Current assets
Cash and cash equivalents 228,471 40,259 231,885
Trade and other receivables
8
57,831 80,404 73,668
Inventories 229,641 251,881 228,793
Derivative financial instruments 12 93 5,677 53
Current tax asset 2,028 16,966 3,790
Other current assets 2,779 2,803 2,799
Total current assets 520,843 397,990 540,988
Non-current assets
Trade and other receivables 8 3,639 3,957 3,945
Property, plant, and equipment 9 82,647 90,836 88,458
Intangible assets 679,476 681,076 688,181
Right-of-use assets 10 238,218 274,988 258,699
Total non-current assets 1,003,980 1,050,857 1,039,283
Total assets 1,524,823 1,448,847 1,580,271
LIABILITIES
Current liabilities
Trade and other payables 123,211 133,128 149,850
Derivative financial instruments 12 11,775 186 7,414
Current tax liabilities 1,823 11,256 8,060
Current lease liability 10 74,997 79,211 78,100
Total current liabilities 211,806 223,781 243,424
Non-current liabilities
Derivative financial instruments 12 - 13 -
Non-current trade and other payables 13,596 8,204 14,413
Interest bearing liabilities 11 238,566 313,425 241,270
Deferred tax 78,702 91,396 81,452
Non-current lease liability 10 201,114 232,644 220,522
Total non-current liabilities 531,978 645,682 557,657
Total liabilities 743,784 869,463 801,081
Net assets 781,039 579,384 779,190
EQUITY
Issued capital 626,380 425,762 626,380
Reserves (37,011) (10,730) (16,612)
Retained earnings 187,377 160,515 165,415
Non-controlling interest 4,293 3,837 4,007
Total equity 781,039 579,384 779,190

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
6
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020
NZ$’000 NZ$’000 NZ$’000
Cash was provided from:
Receipts from customers 424,918 378,631 823,951
Government grants received 18,223 -21,266
Interest received 453 29 449
Income tax received 8 -1,379
443,602 378,660 847,045
Cash was applied to:
Payments to suppliers and employees 368,268 302,250 637,828
Income tax paid 13,881 15,071 16,897
Interest paid 7,621 6,665 21,979
389,770 323,986 676,704
Net cash inflow from operating activities 53,832 54,674 170,341
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant, and equipment 24 - 61
Proceeds from sale of non-controlling interest - - 141
24 -202
Cash was applied to:
Purchase of property, plant, and equipment 6,125 8,337 15,399
Purchase of intangibles 6,141 2,228 4,463
Acquisition of subsidiaries -378,794376,121
12,266 389,359 395,983
Net cash (outflow) from investing activities (12,242) (389,359) (395,781)
Cash flows from financing activities
Cash was provided from:
Proceeds of loan advances -451,338506,746
Proceeds from share issue -140,081340,646
-591,419847,392
Cash was applied to:
Dividends -27,20927,209
Repayment of loan advances -160,516293,757
Repayment of lease liabilities 43,161 33,76977,290
43,161 221,494 398,256
Net cash (outflow) / inflow from financing activities (43,161) 369,925 449,136
Net (decrease) / increase in cash held (1,571) 35,240 223,696
Opening cash and cash equivalents 231,885 6,230 6,230
Effect of foreign exchange rates (1,843) (1,211) 1,959
Closing cash and cash equivalents 228,471 40,259 231,885

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

7



RECONCILIATION OF NET PROFIT AFTER TAXATION WITH CASH INFLOW FROM OPERATING
ACTIVITIES

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000



Profit after income tax 22,279 7,578 8,868

Movement in working capital:
(Increase) / decrease in trade and other receivables 15,219 17,155 24,027
(Increase) / decrease in inventories (3,015) (10,108) 20,305
Increase / (decrease) in trade and other payables (25,596) (8,049) 9,732
Increase / (decrease) in tax liability (4,474) (8,353) 1,526
(17,866) (9,355) 55,590
Add non-cash items:
Depreciation of property, plant, and equipment 10,358 8,316 19,666
Amortisation of intangibles 4,457 3,271 7,539
Depreciation of right-of-use assets 41,353 33,079 76,380
Impairment of right-of-use assets - - 2,050
Paycheck Protection Program (PPP) loan forgiveness (684) - -
Foreign currency translation of working capital balances (5,062) 12,078 214
Increase / (decrease) in deferred taxation (1,686) (816) (3,413)
Employee share-based remuneration 667 116 378
Loss on disposal of property, plant, and equipment 16 407 3,069
49,419 56,451 105,883

Cash inflow from operating activities 53,832 54,674 170,341

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021
8
1 GENERAL INFORMATION
Kathmandu Holdings Limited (the Company) and its subsidiaries (together the Group) is a designer, marketer, retailer and
wholesaler of apparel, footwear and equipment for surfing and the outdoors. It operates in New Zealand, Australia, North
America, Europe, South East Asia, and Brazil.
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 an 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 23 March 2021,
and have been reviewed, not audited.
Seasonality – due to the seasonal nature of the Company and its controlled entities’ activities, the activities in the second half
of the year historically provide a larger portion of the sales and net profit for the full year.
2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These general-purpose financial statements for the six months ended 31 January 2021 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 2020 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 earnings per share and segment restatement noted below, 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 2020.
The Group has restated the basic and diluted EPS for the prior period ending 31 January 2020 to reflect the impact of the
implied bonus element on shares issued during the year. In April 2020 shares were issued as result of an institutional and retail
entitlement offer and share placement at an issue price of NZ$0.50, representing a 51.0% discount to the NZ$1.02 NZX closing
price on 30 March 2020, and a 30.6% discount to the theoretical ex-entitlement price of NZ$0.72.
The Group has now finalised the Rip Curl purchase price allocation as disclosed in note 16. As a result of finalising the
purchase price allocation the statement of comprehensive income for the period ending 31 January 2020 has been revised as
follows:
-Selling expenses decreased by $8.2 million
-Administration and general expenses increased by $9.3 million
-Depreciation and amortisation increased by $0.1 million
-Finance expenses decreased by $0.4 million
-Income tax benefit decreased by $0.2 million
The adjustments primarily relate to the following:
a)Finalisation of Rip Curl lease accounting which included assessing all leases for completeness, assessing fair value of
certain leases at acquisition date, assessment of future rights of renewal in accordance with Group policy and the
application of country specific discount rates. In addition, we identified a reclassification of $9.4 million, reducing
selling expenses and increasing administration expenses by the same amount for the period ended 31 January 2020.
This restatement has been made to correct the previously reported allocation of leases on a lease-by-lease basis in
the Rip Curl Group for the period ended 31 January 2020. This change had no impact on total operating expenses.
The classification was correct at 31 July 2020.
b)Finalisation of the fair value ascribed to fixed assets and definite life intangible assets and the associated depreciation
and amortisation.
The adjustments above are the cumulative impact of all adjustments to the acquired balance sheet reported at 31 January
2020. The net profit after tax for the period ended 31 January 2020 is $0.6 million lower than previously reported.
The Group has also restated the January 2020 segment disclosure in note 7 to reflect the changes identified above as a result
of the finalised purchase price allocation.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

9

4 IMPACT OF COVID-19
COVID-19 continues to have an impact on the Group, with local and global restrictions on movement, travel and gatherings
resulting in a significant reduction in footfall. Stores across our network continue to open and close based on government
mandated lockdowns and closures.
As outlined in the 2020 Annual Report, there continues to be uncertainties due to the COVID-19 pandemic that affects the
Group’s key estimates and judgements, including:
Intangible assets and goodwill – the ability to achieve future forecasts and the consequential impact on the carrying value of
goodwill and other finite life intangibles. The Group have considered whether there are any events or changes in circumstances
since 31 July 2020 and the signing of the 2020 consolidated financial statements that may be an impairment indicator as at 31
January 2021.
Factors considered include:
- The trading performance of each cash generating unit (CGU) for the period has exceeded the impairment models
prepared at 31 July 2020;
- The trading performance of each CGU is expected to exceed our impairment models prepared at 31 July 2020 for the
full year; and
- The Group market capitalisation remains above the net assets of the Group at 31 January 2021, this is further
supported by an increase in the share price since year end.
Having considered the above factors the Group is comfortable that there are no material adverse events or changes in
circumstances that would require impairment testing to be performed at 31 January 2021.
Trade receivables – the ability of wholesale customers to pay. The Group continues to actively monitor payment collection
rates and the level of provisions across the Group. The receivable ageing continues to improve and as a result the expected
credit loss has been adjusted (refer note 8).
Despite the continuing impact of COVID-19, the Directors are satisfied that there will be adequate cash flows generated from
operating and financing activities to meet the obligations of the Group for a period of at least 12 months from the date of
approving the consolidated interim financial statements. The Group was fully compliant with all banking covenants during the
period and, based on the current cash flow forecasts, the Group expects to remain compliant with all covenants for at least 12
months from the date of approving the consolidated interim financial statements.
Taking into consideration the current trading results, the net debt of $10 million and liquidity of $375 million at 31 January 2021
(refer note 11), the financial statements continue to be prepared on a going concern basis.
5 REVENUE

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000


Sale of goods

406,679 361,300 797,410
Royalty revenue

3,885 2,354 3,848
Commission revenue

149 - 266
410,713 363,654 801,524
Other income includes government grants of $20,503,000 (2020: nil) related to wage and other subsidies received in response
to the impact of COVID-19, of which $1,596,000 is receivable at period end.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

10

6 EXPENSES

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000
Profit before tax includes the following expenses:

Depreciation of property, plant, and equipment

10,358 8,316 19,666
Amortisation

4,457 3,271 7,539
Depreciation of right-of-use assets

41,353 33,079 76,380
Employee benefit expense

99,717 77,594 176,168
Rental expense

5,558 9,036 21,595
Acquisition costs

- 10,073 11,895

Finance costs – net consist of:


Interest income

(453) (29) (449)
Interest expense on term debt

1,411 2,197 4,780
Interest on lease liabilities

4,493 4,092 8,874
Other finance costs

3,929 1,803 9,246
Net exchange loss/(gain) on foreign currency borrowings

(185) 1,055 922
9,195 9,118 23,373
Other finance costs relate to facility fees on banking arrangements and debt underwriting costs.
7 SEGMENTAL INFORMATION
The Group has three operating segments.
Outdoor includes the Kathmandu and Oboz brands. This segment designs, markets, retails and wholesales apparel, footwear
and equipment for outdoor travel and adventure.
Surf includes the Rip Curl brand. For the period ended 31 January 2020 only three months of trading is included in the Surf
segment, compared to a full six months in the current period. This segment designs, manufactures, wholesales and retails
surfing equipment and apparel.
The Corporate segment represents group costs, holding companies and consolidation eliminations and constitutes other
business activities that do not fall within outdoor or surf segments.
These operating segments have been determined based on the reports reviewed by the Group Chief Executive Officer and
Group Executive Management team.
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.
Costs recharged between Group companies are calculated on an arms-length basis. The default basis of allocation is
percentage of revenue with other bases being used where appropriate.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

11


31 January 2021 Outdoor Surf Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000

Sales from external customers 159,633 251,080 - 410,713
EBITDA 32,065 67,775 (4,485) 95,355
Depreciation and software amortisation (30,889) (22,673) (2,606) (56,168)
EBIT 1,176 45,102 (7,091) 39,187
Income tax expense 726 (12,007) 3,568 (7,713)
Total segment assets 518,382 332,667 673,774 1,524,823
Total assets include:
Non-current assets 219,634 122,704 661,642 1,003,980
Additions to non-current assets 20,578 16,213 21 36,812
Total segment liabilities 242,388 178,459 322,937 743,784

31 January 2020 Outdoor Surf Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000

Sales from external customers 228,747 134,907 - 363,654
EBITDA 50,780 27,820 (11,336) 67,264
Depreciation and software amortisation (31,559) (11,786) (1,321) (44,666)
EBIT 19,221 16,034 (12,657) 22,598
Income tax expense 3,251 4,827 (2,176) 5,902
Total segment assets 390,866 381,484 676,497 1,448,847
Total assets include:
Non-current assets 234,586 146,755 669,516 1,050,857
Additions to non-current assets 19,596 162,573 302,658 484,827
Total segment liabilities 290,199 263,051 316,213 869,463

8 TRADE AND OTHER RECEIVABLES

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000

Current:

Trade receivables

52,805 66,095 62,143

Allowance for expected credit losses

(9,845) (5,912) (10,329)

Other receivables and prepayments

14,871 20,221 21,854



57,831 80,404 73,668

Non-current:



Other receivables

3,639 3,957 3,945

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

12

9 PROPERTY PLANT & EQUIPMENT

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000



Additions

6,125 8,337 15,399

Acquisition of businesses

- 35,276 35,276

Disposals

(41) (407) (3,128)


10 LEASES

Right-of-use assets
The movements in right of use assets for the six months ended 31 January 2021 were as follows:


Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000

Opening net book value 258,699 - -
Movements on transition - 178,774 178,774
Additions 24,546 15,198 37,941
Right-of-use assets recognised on acquisition (note 16) - 118,457 118,457
Depreciation for the period (41,352) (33,079) (76,380)
Impairment for the period - - (2,050)
Exchange differences (3,675) (4,362) 1,957
Closing net book value 238,218 274,988 258,699

Lease liabilities
The movements in lease liabilities for the six months ended 31 January 2020 were as follows:


Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000

Opening lease liabilities 298,622 - -
Movements on transition - 215,389 215,389
Additions 24,082 15,038 37,886
Lease liabilities recognised on acquisition (note 16) - 119,725 119,725
Interest expense on lease liabilities 4,493 4,092 8,874
Repayment of lease liabilities (including interest) (47,189) (37,723) (86,110)
Exchange differences (3,897) (4,666) 2,858
Closing net book value 276,111 311,855 298,622

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

13

11 INTEREST BEARING LIABILITIES
Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020

NZ$’000 NZ$’000 NZ$’000

Interest bearing liabilities

238,566 313,425 241,270

Group Facility Agreement
The Group has a multi-option syndicated facility agreement, with a term loan facility of A$220 million, a revolving cash
advances facility of NZ$58 million and A$37 million, a trade finance sub-facility of A$30 million and NZ$10 million, and
instruments sub-facility of A$20 million. All facilities are repayable in full on 30 November 2022.
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 1.05%. The debt is secured by the assets of the guaranteeing
group in accordance with the Security Trust Deed dated 25 October 2019.
The covenants entered into by the Group require specified calculations of Group earnings (excluding one-off transaction costs)
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 (excluding one-off
transaction costs) 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 25 October 2019. The Group has obtained a
waiver from its banking syndicate of the current covenants until the 31 July 2021 measurement point; however, the Group has
continued to comply with all covenants at each measurement point since the waiver was obtained.
The current interest rate, prior to hedging, on the term loans is at 0.96% (2020: ranged from 1.89% - 2.30%).
Paycheck Protection Program (PPP) loans
As part of the US government response to COVID-19 the Group’s US resident companies applied for Paycheck Protection
Program (PPP) loans of US $2,814,000 in the year ended 31 July 2020. The Group believes that these entities met the criteria
to qualify for the loans at the date of the application. The eligibility is subject to a possible audit by the federal government at
which time the entities may be deemed not to be eligible. In the event of an unfavourable outcome of the forgiveness
application the Group would be required to repay the PPP loan as well as 1% interest on that loan from the period it was
received until the date it was repaid.
The PPP loan was initially recognised as a loan and once various criteria are met the Group can apply for forgiveness of that
loan. During the period, the Group applied for and received forgiveness of the PPP loan for one of the US resident entities and
consequently a $684,000 gain was recognised in the consolidated statement of comprehensive income in the current period.
The Group believes that the remaining US resident entity also meets the criteria to qualify for future forgiveness. At 31 January
2020 the remaining PPP loan balance was $3,272,000 (2020: $4,201,000) and forgiveness has not yet been applied for nor
granted at this date.

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.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

14

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages this
risk by actively managing working capital and ensuring flexibility in funding arrangements. Refer to note 11 for details of the
funding arrangements in place as at 31 January 2021. Also refer to note 4 for the liquidity risk in relation to the impact of
COVID-19.
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 2020. 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.
The following table presents the Group’s assets and liabilities that are measured at fair value at balance date:

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000

Assets


Derivative financial instruments

93 5,677 53
Total assets

93 5,677 53

Liabilities


Derivative financial instruments

11,775 186 7,414
Total liabilities

11,775 186 7,414

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

15

13 COMMITMENTS
Capital commitments
Capital commitments contracted for at balance date are:

Unaudited
Six Months
Ended
31 January
2021
Unaudited
Six Months
Ended
31 January
2020
Audited
Year
Ended
31 July
2020


NZ$’000 NZ$’000 NZ$’000

Property, plant, and equipment

2,945 5,300 975
Intangible assets

13,669 1,433 709
Intangible asset commitments as at 31 January 2021 relate to various projects across the Group to upgrade information
technology software and systems.

14 CONTINGENT LIABILITIES
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been
made in the Group’s consolidated interim financial statements in relation to any current litigation and the Directors believe that
such litigation will not have a material effect on the Group’s consolidated interim financial position, results of operations or cash
flows.

15 CONTINGENT ASSETS
There are no contingent assets as at 31 January 2021 (2020: nil).

16 ACQUISITION OF RIP CURL GROUP PTY LTD
On 31 October 2019 Kathmandu Holdings Limited through its wholly owned subsidiary Barrel Wave Holdings Pty Limited
acquired 100% of the equity interests in Rip Curl Group Pty Limited and its controlled entities based out of Australia. The total
purchase price was A$350,000,000. The non-controlling interest on acquisition relates to the interest acquired by the Group in
Rip Curl joint ventures in New Zealand, Thailand, and Europe.
Rip Curl is a designer, manufacturer and retailer of surfing equipment and apparel, and has a global presence across Australia,
New Zealand, North America, Europe, South East Asia, and Brazil. The acquisition creates a global outdoor and action sports
company anchored by two iconic Australian brands and provides the opportunity for Kathmandu to considerably diversify its
geographic footprint, channels to market and seasonality profile.
The acquisition accounting fair value adjustments were on a provisional basis in the Group’s 31 January 2020 consolidated
interim financial statements and 31 July 2020 consolidated financial statements. The acquisition accounting adjustments have
now been finalised and updated to reflect independent valuations performed on the net assets recognised on acquisition.

As a result, the following adjustments have been recognised in the finalised purchase price allocation; an increase in other
current assets of $2,803,000, a decrease in property, plant, and equipment of $2,253,000, an increase in the right of use asset
and lease liability of $1,161,000, an increase in trade and other payables of $6,158,000 and a corresponding increase in
goodwill $5,608,000.
The comparatives presented in these financial statements reflect these changes and the resultant cumulative impact as at 31
July 2020 is $11,000.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

16

Final Purchase Price Allocation
NZD$’000
Purchase price 377,562
Less net indebtedness adjustment (78,147)
Plus working capital settlement adjustments 23,437
Total net consideration 322,852

Carrying amounts of identifiable assets acquired and liabilities assumed:

Current assets
Cash and cash equivalents 29,142
Trade and other receivables 83,361
Inventories 124,675
Derivative financial instruments 990
Current tax asset 6,216
Other current assets 2,803

Non-current assets
Other receivables 4,496
Property, plant, and equipment 35,276
Right-of-use assets 118,457
Brand 169,687
Customer relationships 39,697
Other intangibles 3,800

Current liabilities
Trade and other payables (84,164)
Current tax liability (2,224)
Current lease liabilities (33,788)

Non-current liabilities
Non-current trade and other payables (7,571)
Non-current lease liabilities (85,937)
Interest bearing liabilities (115,366)
Deferred tax (53,245)

Less non-controlling interest acquired (3,335)
Net assets acquired 232,970

Goodwill on acquisition 89,882

Total net consideration 322,852

Less cash and cash equivalents acquired (29,142)
Less consideration paid as shares (32,955)
Plus indebtedness settled on acquisition 115,366
Net cash outflow on acquisition 376,121

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

17

17 RELATED PARTY DISCLOSURES
No amounts owed to related parties have been written off or forgiven during the period.

18 EVENTS OCCURRING AFTER BALANCE DATE
There are no events after balance date which materially affect the information within the financial statements.

19 NEW ACCOUNTING STANDARDS
(a) New standards first applied in the period
There are no new standards first applied in the period.

(b) Standards, interpretations, and amendments to published standards that are not yet effective
There are no standards or amendments published but not yet effective that are expected to have a significant impact on the
Group.

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

18

STATUTORY INFORMATION

GROUP STRUCTURE
Kathmandu Holdings Limited owns 100% of the following companies unless otherwise stated:
Milford Group Holdings Limited
Kathmandu Limited
Kathmandu Pty Limited
Kathmandu (UK) Limited
Kathmandu US Holdings LLC
Oboz Footwear LLC
Rip Curl Group Pty Ltd
Rip Curl International Pty Ltd
PT Jarosite
Rip Curl Pty Ltd
Onsmooth Thai Co Ltd
Rip Curl Investments Pty Ltd
Blue Surf Pty Ltd
RC Surf Pty Ltd
Rip Curl Airport & Tourist Stores Pty Ltd
JRRC Rundle Mall Pty Ltd
Rip Curl (Thailand) Ltd (Group owns 50%)
RC Airports Pty Ltd
Ozmosis Pty Ltd
RC Chermside Pty Ltd
Bondi Rip Pty Ltd
Rip Curl Japan
Curl Retail No 1. Pty Ltd
RC Surf Pty Ltd
RC Surf South Pty Ltd
RC Surf NZ Limited (Group owns 50%)
Rip Curl Finance Pty Ltd
Rip Curl Europe S.A.S
Rip Curl Spain S.A.U
Rip Curl Suisse S.A.R.L
Rip Surf LDA
Rip Curl UK Ltd
Rip Curl Germany GMBH
Rip Curl Italy SRL
Rip Curl Nordic AB
Rip Curl Inc
Rip Curl Canada Inc
Rip Curl Brazil LTDA

DIRECTORS’ DETAILS
David Kirk Chairman, Non-Executive Director
Xavier Simonet Managing Director and Group Chief Executive Officer
John Harvey Non-Executive Director
Philip Bowman Non-Executive Director
Brent Scrimshaw Non-Executive Director
Andrea Martens Non-Executive Director

EXECUTIVES’ DETAILS
Xavier Simonet Group Chief Executive Officer
Chris Kinraid Group Chief Financial Officer

DIRECTORY
The details of the Company’s principal administrative and registered office in New Zealand are:

223 Tuam Street
Christchurch Central
PO Box 1234
Christchurch 8011

KATHMANDU HOLDINGS LIMITED - INTERIM REPORT 2021

19

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 on the ASX as a foreign exempt listing.

INCORPORATION
The Company is incorporated in New Zealand.

PricewaterhouseCoopers, PwC Centre, 60 Cashel Street, PO Box 13-244, Christchurch 8141 New Zealand
T: +64 3 374 3000, www.pwc.co.nz
To the shareholders of Kathmandu Holdings Limited
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements of Kathmandu Holdings Limited (the
Company) and its controlled entities (the Group), which comprise the consolidated balance sheet as at
31 January 2021, and the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the six month period
ended on that date, and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated interim financial statements of the Group do not present fairly, in all
material respects, the financial position of the Group as at 31 January 2021, and its financial
performance and cash flows for the six month period then ended, in accordance with International
Accounting Standard 34Interim Financial Reporting (IAS 34) and New Zealand Equivalent to
International Accounting Standard 34 Interim Financial Reporting(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibility is further described in the
review of the financial statementssection of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out other services for the Group in the areas of store turnover certificates, a covenant
compliance audit, tax compliance and advisory services. The provision of these other services has
not impaired our independence.
responsibility for the financial statements
The of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ IAS
34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of consolidated interim financial statements that are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express a conclusion on the consolidated interim financial statements based on
our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our
attention that causes us to believe that the consolidated interim financial statements, taken as a
whole, are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of
consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.

PwC 2
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these consolidated interim
financial statements.
Who we report to
This report is made solely to the Co shareholders as a body. Our review work has been
undertaken so that we might state to the Companyshareholders 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 this report, or for the conclusion we have formed.
Leopino
Foliaki.

For and on behalf of:






Chartered Accountants Christchurch
23 March 2021

---

Kathmandu
Holdings
1H FY21
Results
Presentation
23 March 2021
Mick Fanning
3 x WSL World Surfing Champion

Strong Rip Curl performance underpinned 1H Group result
Rip Curl achieved strong sales and profits
•Increased participation in surfing and beach-related activities
•Global footprint delivered sales growth in key global markets
•Wholesale forward orders above pre-COVID-19 levels
Kathmandu impacted by COVID-19 related travel restrictions and store closures
•Reduced demand for insulation and rainwear given lack of travellers to Northern Hemisphere
•Strong demand for camp, beach, and footwear with renewed interest in local travel and adventure
•Historic performance skewed to 2H
Oboz sales growth and strong forward order book
•Successful product innovation strategy and diversification of customer base
•Increased participation in hiking
2| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

1H Group highlights
3| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Diversified portfolio of brands
•Rip Curl sales performance despite COVID-19 impacts in key
global markets, validates the diversification strategy
Record sales
•Total sales +12.9% above last year, including a full six month
contribution from Rip Curl
Cautious operating cost management
•Costs reduced in response to uncertain trading conditions,
including significant restructuring and synergy savings, rent
abatements, supplemented by government wage assistance
Improved first half trading profit
•Underlying EBITDA $48.2m
Step change in online penetration
•Group online penetration increased to 12.7% of direct to
consumer (“DTC”) sales (1H FY20 8.8%)
Strong balance sheet position
•Net debt $10.1m following careful working capital
management
21.5
25.1
27.6
40.5
48.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1H FY171H FY181H FY191H FY20
incl. 3 months
of Rip Curl
1H FY21
incl. 6 months
of Rip Curl
EBITDA $m (underlying)
1.Underlying results exclude the impact of IFRS 16 and transaction costs related to the Rip Curl acquisition. Refer to Appendix1 for a reconciliation of Statutory to Underlying results
2.Rounding differences may arise in totals, both $ and %
Sales Mix 1H FY21
DTC
Retail
stores
61%
DTC
Online
9%
Wholesale
29%
Other
1%
BY
CHANNEL
AU &
NZ
66%
North
America
20%
Europe
8%
Rest of World
6%
BY
REGION
Rip Curl
61%
Kathmandu
31%
Oboz
8%
BY
BRAND

Step change in online penetration
17.4
21.6
24.8
30.3
36.0
5.2%
6.1%
7.1%
8.8%
12.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1H FY171H FY181H FY191H FY201H FY21
Group online sales up 18.5% to $36.0m
Online sales (NZD $m)
% of DTC sales
Omni-channel capability allowed our brands to capture record online demand
•Online penetration remains significantly above pre-COVID-19 levels for both Rip Curl and Kathmandu
•Rip Curl key online sales growth markets: USA (+107%), Australia (+47%), and Europe (+78%)
•Kathmandu's business across all channels, including online, adversely impacted by the lack of travellers to
the Northern Hemisphere, affecting insulation and rainwear sales
•Oboz launching an online store imminently
Online sales
(NZD $m)
% of DTC
sales
1H FY21
% of DTC
sales
1H FY20
17.411.2%6.4%
18.614.4%10.5%
4| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1.Direct to consumer (“DTC”) sales include all sales from Rip Curl and Kathmandu retail stores and direct online sites and marketplaces
2.All years include a full six months of both Kathmandu and Rip Curl online and total DTC sales for comparability over time
3.Rounding differences may arise in totals, both $ and %

5| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Sustainability is at the core of our brands
CARBON NEUTRAL
CERTIFIED
KATHMANDU MEETS THE
HIGHEST STANDARDS OF
ENVIRONMENTAL AND
SOCIAL PERFORMANCE
COMMITTED TO LONG TERM
PARTNERSHIPS WITH ETHICAL
SUPPLIERS
OBTAINED THE
RAINBOW TICK
CERTIFICATION IN NEW
ZEALAND FOR
EMBRACING DIVERSITY
& INCLUSION
SCORED B+ IN THE ETHICAL
FASHION REPORT TWO YEARS
RUNNING


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
B+
COLLABORATED WITH KATHMANDU ON
DEVELOPING OUR SUSTAINABILITY JOURNEY
3.3
MILLION
TREES PLANTED SINCE
THE COMPANY STARTED
41%
IMPROVED GENDER DIVERSITY
IN OUR TEAM NOW WITH
FEMALE
REPRESENTATION
LAUNCHED THE SYPES AND BOZEMAN
COLLECTIONS CONTAINING RECYCLED
MATERIALS AND ALGAE BLOOM INSOLES

COVID-19 impact and response
COVID-19 has substantially impacted
the global business:
•60 Greater Melbourne stores closed for over 11
weeks
•14 Auckland stores closed for two weeks
•Airport and CBD stores, as well as Rip Curl stores in
Hawaii, Bali, and Europe are still impacted by either
COVID-19 related travel restrictions or government
mandated lockdowns and closures
•Wholesale sales for 1H FY21 impacted by the
missed sell-in season during initial global lockdowns
in April and May 2020 for delivery in October to
December 2020
6| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Rapid response to changes in consumer
preference:
•Rip Curl responded quickly to demand for wetsuits and
related surfing products, as participation in surfing
increased
•Kathmandu up-weighted its focus on summer camping
and footwear to respond to increased interest in local
travel and adventure
•Omni-channel capability allowed our brands to capture
record demand for the online channel

7| KATHMANDU HOLDINGS FY20 RESULTS PRESENTATION
7| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Group
Financials

1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results. Refer to Appendix 1 for a reconciliation of Statutory to Underlying results
2.1H FY21 NZD/AUD conversion rate 0.931 (1H FY20: 0.955), 1H FY21 NZD/GBP conversion rate 0.517 (1H FY20: 0.508), 1H FY21 NZD/USD conversion rate 0.684 (1H FY20 0.641)
3.In 1H FY20, $10.3m was incurred in relation to the acquisition and integration of Rip Curl, including establishment of a new Group structure. Refer to Appendix 1 for a reconciliation of Statutory to Underlying results
4.The Group has now finalised the Rip Curl purchase price allocation. As a result, the income statement, balance sheet, and cash flow for prior periods have been restated
5.Rounding differences may arise in totals, both $ and %
•1H FY21 result includes a full six months of Rip Curl,
compared to 1H FY20 which includes three months of
Rip Curl post-acquisition
•Cautious management of operating expenses include
the benefit of rent abatements agreed with landlords,
as well as restructuring and synergy savings delivering
c. $15m annualised cost reduction
•Net government wage assistance across geographies
of c. $15.2m
•Depreciation includes $2.5m notional amortisation of
Rip Curl customer relationships (1H FY20 $1.2m)
•Interest costs in the first half year include $2.1m one-
off bank facility underwriting costs ($1.5m net of tax),
excluded from underlying results
8| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1H Group result underpinned by strong Rip Curl performance
GROUPStatutoryUnderlying
NZD $m
*2
1H FY211H FY211H FY20Var %
SALES410.7410.7363.712.9%
GROSS PROFIT242.5242.5218.910.8%
Gross margin59.0%59.0%60.2%
OPERATING EXPENSES(147.2)(194.3)(178.4)8.9%
% of Sales35.8%47.3%49.1%
EBITDA95.448.240.519.0%
EBITDA margin %23.2%11.7%11.1%
Depreciation(56.2)(14.8)(11.6)27.9%
EBIT39.233.428.915.5%
EBIT margin %9.5%8.1%8.0%
NPAT22.323.117.432.8%

•Change in working capital caused by a reduction in payables
since FY20 year end. The FY20 payables balance included c.
$15m rent accruals, pending final agreements with landlords on
rent abatements
•Capital expenditure for full year expected to be c. $30m due to
continued investment in systems and capabilities
•FY20 interim and final dividends suspended due to equity raise
bank facility provisions
1.Adjusted for impacts of adopting IFRS 16
2.Rounding differences may arise in totals, both $ and %
9| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Positive Cash Flow
Cash Flow (NZD $m) 1H FY211H FY20
NPAT22.37.6
Change in working capital(17.9)(9.4)
Non-cash items6.322.7
Adjusted operating cash flow
*1
10.720.9
Key Line Items:
Net interest paid (including facility fees)
*1
(2.7)(2.5)
Income taxes paid(13.9)(15.1)
Capital expenditure(12.2)(10.6)
Dividends paid-(27.2)

Robust Balance Sheet
•Inventory balance broadly in line with FY20 year end
•Inventory well placed in COVID-19 demand environment, with low
clearance stock levels
•Lease liabilities reduced due to current leases progressing through
their fixed lease terms
1.Key ratios calculated using 12 month rolling P&L measures, including a full 12 months of
Rip Curl P&L results last year, and excluding transaction costs
2.Net Debt / EBITDA
3.Net Debt / (Net Debt + Equity)
4.EBIT/(Net Debt + Equity)
5.(EBITDA + Rent)/(Rent + Net Finance Costs excl. FX)
6.COGS / Average Inventories YOY
7.Rounding differences may arise in totals, both $ and %
10| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Balance Sheet (NZD $m)Jan 21Jul 20Jan 20
Inventories229.6 228.8 251.9
Property, plant and equipment82.6 88.5 90.8
Right of Use Asset (IFRS 16)238.2 258.7 275.0
Intangible assets679.5 688.2 681.1
Other assets66.4 84.2 109.8
Total assets (excl. cash)1,296.3 1,348.4 1,408.6
Net interest bearing liabilities and cash(10.1) (9.4) (273.2)
Lease Liability (IFRS 16)(276.1) (298.6) (311.9)
Other non-current liabilities(92.3) (95.9) (99.6)
Current liabilities(136.8) (165.3) (144.6)
Total liabilities (net of cash)(515.3) (569.2) (829.2)
Net assets781.0 779.2 579.4
Key Ratios
*1
Jan 21Jul 20Jan 20
Leverage Ratio
*2
0.1x0.1x1.9x
Net Debt to Equity
*3
1.3%1.2%32.0%
ROIC
*4
7.1%8.2%13.3%
Fixed Charge Cover
*5
1.7x1.7x2.0x
Stock Turns
*6
1.5x1.7x1.7x

Strong capital structure
•Net Debt $10.1m at end of January
•Significant headroom to current facility of c. $380m
•Historically the second half year for Kathmandu brand generates
strong cash inflows
•All debt facility covenants comfortably complied with despite
COVID-19
•Restructure of debt facility underway, to increase flexibility, reduce
drawn funds, and introduce sustainability linked financing
•Subject to normal trading conditions, we expect to be in a positive
net cash position by year end
11| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1.Jan 20 net debt reflected the acquisition of Rip Curl. Actual net debt adjusted for $200m net proceeds of equity raise completedin Apr 20
31.4
79.2
19.3
73.2
9.4
10.1
273.2
6.9%
16.5%
4.2%
8.6%
1.2%
1.3%
-2.0%
3.0%
8.0%
13.0%
18.0%
23.0%
28.0%
0
50
100
150
200
250
300
350
400
Jul18Jan 19Jul 19Jan 20
(adj)*1
Jul 20Jan 21
Net Debt
Net Debt
Net Debt to Equity

Interim dividend resumes
•NZ 2.0 cents per share interim dividend
•Dividend will not be imputed for New Zealand shareholders
•Dividend will be fully franked for Australian shareholders
•Record date 21 May 2021
•Payment date 4 June 2021
12| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
4.04.04.0
0.0
2.0
9.0
11.0
12.0
13.0
15.0
16.0
0.0
0.0
5.0
10.0
15.0
20.0
25.0
FY17FY18FY19FY20FY21
Dividends (NZ cents per share)
InterimFinalTotal

13| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

Rip Curl achieved strong sales and profits
•Total sales 4.3% below pcp, with sales growth achieved in key
markets of Australia, USA, and Europe
•Direct to consumer same store sales growth (incl. online)
*2
:
•+21.0% adjusted for COVID-19 lockdowns
*3
•+7.4% overall
•Online sales 79% above pcp, comprising 11.2% of DTC sales
•Wholesale sales -15.0% below pcpreflect a disrupted sell-in
period during global lockdowns in April and May 2020 for delivery
in October to December 2020
•Wholesale forward order books above pre-COVID-19 levels
reflecting customers re-stocking and strong category performance
•COVID-19 restrictions continued to impact sales performance of
stores in airports, Melbourne, Hawaii, Bali and parts of Europe
•Gross margin is 40 bps (0.4%) above the comparable six month
period last year as a result of higher mix of direct to consumer
sales
•EBITDA includes restructuring and synergy savings, rent
abatements, and net government wage assistance
14| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Rip Curl 1H FY21 Sales Mix
1.Sales variances vs prior comparable period (“pcp”) compare sales for the six months ended 31
January 2021 to sales for the six months ended 31 January 2020, including three months of
sales pre-Kathmandu ownership
2.Same store sales are measured at constant currency. Same store sales are for the 27 full
weeks ended 31 January 2021
3.Adjusted same store sales removes stores that were not able to open this year for a
comparable week because of COVID-19 lockdowns
4.Rounding differences may arise in totals, both $ and %
Rip Curl owned for a full six months in 1H FY21 compared to three months in 1H FY20
Retail
stores
55%
Online
7%
Wholesale
36%
Other
2%
BY
CHANNEL
AU &
NZ
57%
North
America
21%
Europe
13%
Rest of World
9%
BY
REGION
Pre IFRS 16
RIP CURL 1H FY211H FY20
NZD $m
Aug 20 to
Jan 21
Nov 19 to
Jan 20
Var %
SALES251.1134.986.1%
GROSS PROFIT150.380.786.3%
Gross margin59.9%59.8%
OPERATING EXPENSES(101.7)(62.3)63.2%
% of Sales40.5%46.2%
EBITDA (underlying)48.718.4164.3%
EBITDA margin %19.4%13.7%
EBIT (underlying)44.016.1173.9%
EBIT margin %17.5%11.9%

Group synergies and technology drive product innovation
Anti-Series Puffer Collection
Every Surfer needs a quality Puffer
Utilising Kathmandu shared expertise, Rip Curl
is extremely excited to develop new technical
insulation styles. In store June
Salt Water Culture: Paradise Calling
Continuing with market leading swim collections,
Paradise Calling joins the sustainable Saltwater
Culture family
Designed to offer our customers an eco friendly
range of quality surf products
Anti Series HeatseekerJacket
A new jacket design utilising technology from our
successful “Heatseeker” wetsuit program
Infrared lining absorbs and reflects the body’s
radiant heat
15| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

Investing to enhance Rip Curl’s global brand leadership
Summer Looks Good On You
A brand new global women's campaign including 50 of our international team riders
Campaign offers layers of diversity and includes an interactive web-based ‘Fit
Chart’, where our women’s Design and Product team are the models, promoting
inclusivity and sizes for all
16| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
World Surf League Sponsorship
New three-year partnership of the Rip Curl WSL Finals, a season-ending
one-day competition that will decide the men’s and women’s World Surfing
Champions
Rip Curl is also naming rights sponsor of three new events on the WSL
World Tour: the Rip Curl Cup Newcastle, Rip Curl Classic Narrabeen, and
the Rip Curl Search Rottnest Island
Rip Curl has also secured ongoing sponsorship of the Rip Curl Pro Bells
Beach when it returns in 2022
Tyler Wright
2 x WSL Champion
2016, 2017

17| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

Kathmandu impacted by lockdowns, low footfall, and lack of travel
18| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Kathmandu Sales Mix 1H FY21
•Total sales by market (at constant exchange rates):
•Australia -40.5%, with 27 Greater Melbourne stores closed for 11 weeks
•New Zealand -23.4%, with 14 Auckland stores closed for two weeks
•Online penetration increased from 10.5% of sales in 1H FY20 to 14.4% of
sales in 1H FY21
•Same store sales results
*1
:
•-30.0% adjusted for COVID-19 lockdowns
*2
•-35.4% overall
•Strong demand for camp, beach, and footwear with renewed interest in local
travel and adventure
•Low footfall in shopping centres, CBD stores, and tourist locations
•Reduced demand for insulation and rainwear resulting from a lack of
international travellers to the Northern Hemisphere
•Kathmandu sales have historically been weighted to the second half year,
when winter in Australasia drives natural demand for insulation and rainwear
•Operating expenses include the benefits from restructuring, rent
abatements, and net government wage assistance
1.Same store sales are measured at constant currency. Same store sales are for the 27 full weeks ended 31 January 2021
2.Adjusted same store sales removes stores that were not able to open this year for a comparable week because of COVID-19 lockdowns
3.Rounding differences may arise in totals, both $ and %
KATHMANDUPre IFRS 16
NZD $m1H FY211H FY20Var %
SALES127.3195.5(34.9%)
GROSS PROFIT81.7125.0(34.7%)
Gross margin64.2%64.0%
OPERATING EXPENSES(81.4)(106.7)(23.7%)
% of Sales64.0%54.6%
EBITDA (underlying)0.218.3(98.6%)
EBITDA margin %0.2%9.3%
EBIT (underlying)(7.1)10.5(167.4%)
EBIT margin %-5.6%5.4%

Leading innovation in sustainable technology
World’s first Biodegradable Fleece
Built in partnership with Primaloft, a great looking, versatile pair of everyday right-
priced silhouettes:
•In modern landfills, the fabric will mostly biodegrade into natural elements
within about two years
*1
(a normal recycled polyester fleece jacket could take a
hundred years)
•During wash, the micro fibres cast off from the fabric can biodegrade
*1
in sea
water to a much larger degree than standard recycled polyester, reducing
ocean microplastic waste
Broadening customer appeal
•Where Kathmandu’s technical experience with performance
materials meets versatile, stylish, category-defying
silhouettes
•The first step in our journey to open the style aperture and
invite a younger, more cosmopolitan consumer to the brand
19| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1.See www.kathmandu.co.nz/biofleecefor information about the test methods used and the rates and extent of degradation

Building on strong engagement, personalisation and brand loyalty
Driving best in class customer interactions
•Investing in personalisation capability for interactions that target not only
the right customer, but at the right time, and across the right digital
channels
•Boosting loyalty performance through the use of data, analytics and
insights to deliver stronger relevancy and in turn, higher conversion
20| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Active and engaged customer base
•Net promoter score 76 across all customer groups, +3% above
2H last year
•Increase in conversion of footfall to sales in-store
•2.2 million active Summit Club members
•Representing over 70% of total Kathmandu sales

21| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

Oboz continued sales growth
1.Rounding differences may arise in totals, both $ and %
•Oboz sales above last year, driven by successful product
innovation strategy and diversification of customer base
•Increased participation in hiking
•Gross margin impacted by significant one-off air freight costs
(c. USD $1.1m) to support key customer deliveries of winter
seasonal styles
•Gross margin to normalise to historical levels from 2H FY21
•Forward order book well above pre-COVID-19 levels, allowing
investment to support future growth
•New online store launching imminently
22| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
OBOZPre IFRS 16
USD $m1H FY211H FY20Var %
SALES22.121.33.8%
GROSS PROFIT7.28.5(15.1%)
Gross margin32.4%39.6%
OPERATING EXPENSES(4.6)(5.2)(11.8%)
% of Sales20.6%24.3%
EBITDA (underlying)2.63.3(20.5%)
EBITDA margin %11.8%15.3%
EBIT (underlying)2.53.2(20.7%)
EBIT margin %11.3%14.8%

New online store and broader product appeal
Online sales opportunity:
•New online store launching imminently
Product highlights:
•SypesFranchise explosion: Launched at Kathmandu
and REI. Outstanding success, and pre-season sales
very strong
•Bozeman Collection: Momentum continues in local-
inspired Collection brought about by strong sell-in and
marketing exposure
•Core Business Growth : Bridger and Sawtooth styles
sustained pre-COVID-19 levels in the first half, with
significant growth in forward orders
Brand and marketing highlights:
•#1 selling outdoor footwear brand in the Outside
business journal annual survey of independent retailers
•37% growth in social media audience in 1H FY21
•Launch of first-ever Diversity, Equity, and Inclusion
(“DEI”) Report. New partnership launched with Black
Folks Camp Too
True to the Trail™brand offering supplemented with
products targeting younger, more diverse, and more
active customers
23| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

24| KATHMANDU HOLDINGS FY20 RESULTS PRESENTATION
Strategy
and
Outlook
24| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

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
25| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
•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

Delivering on our strategy
1H Performance:
•Rip Curl 1H FY21
performance in key global
markets validates the
diversification strategy
Diversifythe
Business
1H Performance::
•Pivoted quickly to upweight
focus on technical surf, camp,
beach, picnic, and footwear
products
•Implemented phase one to
evolve Kathmandu loyalty
Grow Each
Brand
Promote Our
Values
1H Performance:
•Carbon neutral target
achieved by Kathmandu, four
years ahead of schedule
26| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Leverage the
Portfolio
1H Performance:
•Rip Curl EBITDA $48.7m,
19.4% of sales
•Online penetrationincreased
to 12.7% of DTC sales in 1H
FY21 (1H FY20 8.8%)
2H Priority:
•Kathmandu enters the
traditionally strong winter
season well prepared
2H Priority:
•Significant digital investment
program underway, including
loyalty management,
merchandise planning,
personalisation using data
algorithms, data driven insights
into consumer preferences,
ERP and point of sale upgrades
2H Priority:
•Loyalty program being
implemented at Rip Curl
•Oboz launching online store
•Kathmandu increasing
personalisationand data
analytics
2H Priority:
•The Group to set a Science-
Based carbon reduction target
•Working towards Group-wide
B-Corp certification
•Engaging with key
stakeholders in a Group ESG
materiality assessment
The Group remains committed to delivering the strategic imperatives

Outlook
27| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
2H Outlook
•Kathmandu enters the traditionally strong winter season well prepared
•Oboz investment in new product sees it enter 2H FY21 with an order book well above pre-COVID-19 levels
•Rip Curl continues to trade in line with strong first half trends, and wholesale order books above pre-COVID-19 levels
Long-term growth fundamentals remain in place
•Strong, iconic brands
•Technical and innovative products
•Loyal customers
•Global reach and diversification
•All brands are well positioned to capitalise on increased participation in outdoor, hiking, beach and surfing activities
•COVID-19 vaccine rollout expected to benefit international travel in the long-term and provide the opportunity for future Kathmandu comparative sales growth
•Strong cash generation and low net debt provides options to pursue attractive growth opportunities and provide growing returns to shareholders

28| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Questions

Appendix 1: Statutory to Underlying Profit & Loss
29| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results
2.1H FY21 interest costs include $2.1m one-off bank facility underwriting costs ($1.5m net of tax)
3.1H FY20 includes $10.3m expenses incurred in relation to the acquisition and integration of Rip Curl, including establishmentofa new Group structure
4.Rounding differences may arise in totals, both $ and %
GROUP
1H FY211H FY20
NZD $mIFRS 16TransactionOtherIFRS 16TransactionOther
Statutory
Leases
*1
Costs
*2
one-offsUnderlying
Statutory
Leases
*1
Costs
*3
one-offs
*3
Underlying
Sales410.7 - - - 410.7 363.7 - - - 363.7
Gross profit242.5 - - - 242.5 218.9 - - - 218.9
Gross margin59.0%59.0%60.2%60.2%
Operating expenses(147.2) (47.1) - - (194.3) (151.6) (37.1) 10.1 0.3 (178.4)
% of sales-35.8%-47.3%-41.7%-49.1%
EBITDA95.4 (47.1) - - 48.2 67.3 (37.1) 10.1 0.3 40.5
EBITDA margin %23.2%11.7%18.5%11.1%
EBIT39.2 (5.8) - - 33.4 22.6 (4.0) 10.1 0.3 28.9
EBIT margin %9.5%8.1%6.2%8.0%
NPAT22.3 (0.7) 1.5 - 23.1 7.6 0.1 9.6 0.2 17.4

Appendix 2: Segment Note
30| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results
2.1H FY20 includes $10.3m expenses incurred in relation to the acquisition and integration of Rip Curl, including establishmentofa new Group structure
3.Rounding differences may arise in totals, both $ and %
SALESEBIT
1H FY21 (NZD $'000)OutdoorSurfCorporateTotal1H FY21 (NZD $'000)OutdoorSurfCorporateTotal
SALES per segment note159,633 251,080 - 410,713 EBIT per segment note1,176 45,102 (7,091) 39,187
- IFRS 16 Leases Adjustment(4,627) (1,140) - (5,767)
Transaction Costs & Abnormals- - - -
SALES (underlying)159,633 251,080 - 410,713 EBIT (underlying)(3,451) 43,962 (7,091) 33,420
1H FY20 (NZD $'000)OutdoorSurfCorporateTotal1H FY20 (NZD $'000)OutdoorSurfCorporateTotal
SALES per segment note228,747 134,907 - 363,654 EBIT per segment note19,221 16,034 (12,657) 22,598
- IFRS 16 Leases Adjustment(4,006) 16 - (3,990)
Transaction Costs & Abnormals262 - 10,072 10,334
SALES (underlying)228,747 134,907 - 363,654 EBIT (underlying)15,477 16,050 (2,585) 28,942

Appendix 3: Segment Summary
1.Refer to Appendix 2 for a reconciliation of Statutory to underlying segment Sales andEBIT
2.Rounding differences may arise in totals, both $ and %
•Outdoor segment includes both Kathmandu and Oboz brands
•Surf segment contains the Rip Curl brand, including the Ozmosis group of multi-brand surf stores operated by Rip Curl in Australia
•Corporate costs include director and listing costs, plus amortisation of Rip Curl customer relationships
31| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Gross Profit $ Mix 1H FY21
Retail
stores
64%
Online
10%
Wholesale
22%
Other
4%
BY
CHANNEL
AU & NZ
69%
North
America
15%
Europe
7%
Rest of World
9%
BY
REGION
Rip Curl
62%
Kathmandu
34%
Oboz
4%
BY
BRAND
NZD $m1H FY211H FY20Var %
Kathmandu sales127.3 195.5
(34.9%)
Oboz sales32.4 33.3
(2.7%)
Outdoor segment sales159.6 228.7 (30.2%)
Surf segment sales251.1 134.9
Total segment sales410.7363.712.9%
Kathmandu underlying EBIT(7.1) 10.5
(167.4%)
Oboz underlying EBIT3.7 4.9
(25.7%)
Outdoor segment underlying EBIT(3.5) 15.5 (122.3%)
Surf segment underlying EBIT44.0 16.1
Total segment underlying EBIT40.531.528.5%
Corporate costs(7.1) (2.6)
Group underlying EBIT33.428.915.5%

Appendix 4: Brands with global reach
32| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
Owned regions
Licensed regions
North AmericaRCKMDObozTotal
Owned stores31--31
Licensed stores12--12
Online sites11-2
Wholesale doors1,282-1,8003,082
Total GroupRCKMDObozTotal
Owned stores162162-324
Licensed stores220--220
JV stores28--28
Online sites64-10
Wholesale doors5,689282,0667,783
South AmericaRC
Owned stores4
Licensed stores93
Online sites1
Wholesale doors760
AU & NZRCKMDTotal
Owned stores106162268
Licensed stores20-20
JV stores6-6
Online sites224
Wholesale doors1,065-1,065
Africa/ Middle EastRC
Licensed stores25
AsiaRCObozTotal
Owned stores1-1
Licensed stores53-53
JV stores22-22
Online sites1-1
Wholesale doors535152687
Europe RCKMDObozTotal
Owned stores20--20
Licensed stores17--17
Online sites11-2
Wholesale doors2,047281142,189
RCRip Curl
KMDKathmandu
ObozOboz

Brand strengths more relevant than everbefore
33| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION
•Established and distinctive
American Montana-basedbrand
•Focused, efficient productrange
with significant expansion
potential
•Positive operating cashflow
•Efficient operatingstructure
•Direct to consumeronline
channel launchingFY21
•Iconic, inspirational,and
authenticbrand
•Renowned for high quality
technical surfingproducts
•Globaldistribution
•Diversified revenue streams
across both wholesale and retail
channels
•Strong cash contribution
•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)

Important Notice and Disclosure
This presentation prepared by Kathmandu Holdings Limited (the “Company” or the “Group”) (ASX/NZX:KMD) dated 23 March 2021 provides additional comment on
the financial statements of the Company for the 6 months ended 31 January 2021, and accompanying information, released to themarket on the same date. As such,
it should be read in conjunction with the explanations and views in those documents.
This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.Past
performance is not indicative of future performance and no guarantee of future returns is implied or given.
The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment
decision. This presentation has been prepared without taking into account the investment objectives, financial situation or specific needs of any particular person.
Potential investors must make their own independent assessment and investigation of the information contained in this presentation and should not rely on any
statement or the adequacy or accuracy of the information provided.
This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates. Forward-looking
information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of the
Company’s control, and may involve significant elements of subjective judgement and assumptions as to future events which mayormay not be correct. A number of
important factors could cause actual results or performance to differ materially from the forward-looking statements. No assurance can be given that actual outcomes
or performance will not materially differ from the forward-looking statements. The forward-looking statements are based on information available to the Company as
at the date of this presentation.
To the maximum extent permitted by law, none of the Group of Companies, its directors, employees or agents accepts any liability, including, without limitation, any
liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty,
express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of anyforecasts, prospects, statement or
returns contained in this presentation. Such forecasts, prospects, statement or returns are by their nature subject to significant uncertainties and contingencies. Actual
future events may vary from those included in this presentation.
The statements and information in this presentation are made only as at the date of this presentation unless otherwise statedand remain subject to change without
notice.Some of the information in this presentation is based on unaudited financial data which may be subject to change.
All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company.
All currency amounts in this presentation are in NZD unless stated otherwise.
34| KATHMANDU HOLDINGS 1H FY21 RESULTS PRESENTATION

---

Distribution Notice



Kathmandu Holdings Ltd
kathmanduholdings.com

1
Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Kathmandu Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code KMD
ISIN (If unknown, check on NZX website) NZKMDE0001S3
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 21/05/2021
Ex-Date (one business day before the
Record Date)
20/05/2021
Payment date (and allotment date for
DRP)
04/06/2021
Total monies associated with the
distribution
1

$14,180,027.68
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.02000000
Gross taxable amount
3
$0.02000000
Total cash distribution
4
$0.02000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please state
imputation rate as % applied
6

N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per financial
product
$0.00660000

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Distribution Notice



Kathmandu Holdings Ltd
kathmanduholdings.com

2
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)

Start date and end date for determining
market price for DRP

Date strike price to be announced (if not
available at this time)

Specify source of financial products to be
issued under DRP programme (new issue
or to be bought on market)

DRP strike price per financial product

Last date to submit a participation notice
for this distribution in accordance with
DRP participation terms

Section 5: Authority for this announcement
Name of person

authorised to make this
announcement
Frances Blundell
Contact person for this announcement Frances Blundell
Contact phone number +64 3 968 6110
Contact email address companysecretary@kathmandu.co.nz
Date of release through MAP

Tuesday, 23 March 2021