Annual Integrated Report and Notice of Meeting

KMD BRANDS LIMITED W kmdbrands.com

KMD Brands Limited
ASX / NZX / Media announcement

14 October 2022

KMD Brands publishes Annual Integrated Report and
Notice of Meeting
KMD Brands Limited (ASX/NZX: KMD, “KMD Brands”) advises that it has today published its Annual
Integrated Report for the year ended 31 July 2022, and the Notice of Meeting for its 2022 Annual
Shareholders’ Meeting.
Annual Integrated Report
KMD Brands is pleased to publish its first Annual Integrated Report for the year ended 31 July 2022.
The Annual Integrated Report is available electronically at www.kmdbrands.com/results-reports. A
hardcopy will be sent to shareholders who have requested this.
Annual Shareholders’ Meeting
KMD Brands’ Annual Shareholders’ Meeting will be held at Dexus Place, 15/1 Farrer Street, Sydney,
and online at www.virtualmeeting.co.nz/kmd22, on Wednesday, 16 November 2022 at 10:00am
(AEDT) / 12:00pm (NZDT).
The following documents are attached:
1. Annual Integrated Report
2. Notice of Annual Meeting
3. Proxy Form
4. Link Virtual Annual Meeting online guide

– ENDS –
For further information, please contact:
Frances Blundell
Company Secretary
companysecretary@kmdbrands.com

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KMD Brands
Annual Integrated Report 2022
Annual Integrated Report

CONTENTS
2OUR JOURNEY
2Reporting approach
3Our purpose and vision
4Our brands
10Highlights and lowlights for FY22
12Our world
14LEADERSHIP & GOVERNANCE
14Report from the Chair
16Group CEO’s report
18B Corp at KMD Brands
20Our Board
21Our Management team
22WHAT MATTERS MOST
22Materiality approach
23Our material issues
24STRATEGY
24How we create value
26Our strategic pillars
28BUILDING GLOBAL BRANDS
32ELEVATING DIGITAL
36OPERATIONAL EXCELLENCE
40LEAD IN ESG
42Our people, our communities
48Science-based climate action
70Circular business models
82FINANCING OUR IMPACT
83Group CFO Statement
84Financial Statements
132Auditors report
136ADDITIONAL DISCLOSURES
136 Corporate Governance Statement
146Statutory information
151Directory
152GRI Index
174SASB Index
176Our Partners
KMD Brands acknowledges the Indigenous Nations, First Peoples, Tangata Whenua and Custodians of the
lands and waterways on which our brand head oices reside in New Zealand, Australia and the United
States. We express our gratitude and appreciation to these Peoples for sharing their culture and traditions
and stewarding these lands. We recognise and pay our respects to their elders, past, present and emerging.
1

Our Purpose and Vision
OUR BUSINESS
KMD Brands is a global outdoor
lifestyle and sports company
made up of three iconic brands:
Kathmandu, Oboz and Rip Curl.
Kathmandu, a certified B Corp, was
founded in 1987 in New Zealand
to equip people for travel and
adventure. Oboz, which joined the
Group in 2018, is based in the United
States and designs footwear to
help people explore the outdoors.
Rip Curl, acquired in 2019, is a
leading global surf brand born in
Bells Beach, Australia, in 1969.
KMD Brands Limited is publicly listed
on the NZX and ASX, initially listing
in 2009 as Kathmandu Holdings
Limited. The name changed to
KMD Brands Limited in 2022 to
reflect the multi-brand nature of the
company and its future strategy,
while still acknowledging our history.
KMD Brands is a family of outdoor
brands that designs products for
purpose, is driven by innovation
and is best for people and planet.
All products in the KMD Brands
family are made specifically for
the outdoors and are tested
by experts in the elements.
As the parent company, KMD
Brands brings vision and strategic
guidance that make Kathmandu,
Oboz and Rip Curl much more than
the sum of their parts. By sharing
expertise in technology, research
and development and by leveraging
operational excellence in sourcing,
supply chain and systems, we are
able to deliver the best customer
experience across our brands.
WHAT DRIVES US
Our purpose and vision are motivated
by our love of the outdoors and
a commitment to protecting our
natural environment and the
people touched by our brands.
We are proud to be part of an
accelerating global cultural shift
to redefine success, build a more
inclusive and sustainable economy
and use business as a force
for good.
By pushing for sustainable practices
across all three of our brands,
we protect the experience and
exhilaration oŸered by the outdoors
that mean so much to us and
our customers.
PURPOSE
Inspiring people to
explore and love
the outdoors.
VISION
To be the leading
family of global
outdoor brands –
designed for
purpose, driven by
innovation, best for
people and planet.
OUR JOURNEY
Reporting Approach
ABOUT THIS REPORT
This integrated report is a review
of financial, economic, social and
environmental performance for the
year ending 31 July 2022. This is our
first year of integrated reporting.
We have prepared this report using
the International <IR> Framework,
which aims to communicate the
full range of factors that aŸect
an organisation’s ability to create
value over time. It requires a
high level of transparency and a
commitment to robust disclosure
around Environmental, Social and
Governance (ESG) commitments.
KPMG has audited the financial
statements in this report. Information
has been prepared in accordance
with New Zealand Equivalents to
International Financial Reporting
Standards (NZ IFRS) and International
Financial Reporting Standards
(IFRS). Non-financial information
aligns with the Global Reporting
Initiative (GRI) standards Core
option. From next year our report
will align with the recently released
updated GRI Universal Standards.
In the coming years we will look
to expand on our Climate-related
disclosures. For the first time this
year, we are now reporting on Task
Force on Climate-related Financial
Disclosures (TCFD), building on our
annual Climate Disclosure Project
(CDP) reporting. We will improve and
increase our reporting of our climate-
related risks and opportunities
and how they are reflected in
our business strategy in future
years in preparation for reporting
requirements under the NZ Climate-
related Disclosures standards. We
will consider incorporation of Task
Force on Nature-related Financial
Disclosures (TNFD) disclosures
in future reporting periods.
This report also includes our
Group carbon emissions data,
with assurance provided by Toitū
Envirocare, a New Zealand-based
company helping businesses
reduce their carbon footprint and
be more sustainable. Apart from
our carbon emissions data, external
assurance on non-financial data or
information has not been obtained.
This report constitutes KMD Brands
2022 Annual Report to shareholders
and covers the requirements of the
NZX Corporate Governance Code.
KMD Brands Annual Integrated Report 202223
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

Kathmandu’s journey began
in Aotearoa New Zealand
more than 30 years ago. We’re
on a mission to improve the
wellbeing of the world by
getting more people outdoors
– because nature has a positive
transformative eect on us all.
Getting outside makes us more
happy, open, free and fun. And
that’s why we’re all about creating
thoughtfully designed outdoor
gear – so people can experience
nature’s benefits more often.
Kathmandu’s vision is to be the
world’s most loved outdoor brand.
Our Brands
FINANCIAL
CHANNELS
NZD
$381.6m
Total sales
NZD
$71.5m
Online sales
Representing 18.7% of
direct to consumer sales.
155
Retail stores
Over 50
Wholesale doors
BRAND
2.0m
Active Summit Club
members
Online
19%
Retail stores
81%
BY
CHANNEL
SALES MIX
KMD Brands Annual Integrated Report 202245
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

Born in the legendary Greater
Yellowstone Ecosystem right
outside our front door, the
mountains just outside Bozeman
beckon us. It's this 18-million-
acre laboratory where we test
our designs and inspire ideas,
and where we just soak it all in. It
even inspired the name “Oboz”
(Outside+Bozeman=Oboz).
Each day we come to work, we
simply do our best to live up to this
gift. Here at Oboz, we are hikers, we
are walkers, we are runners, we are
bikers, we are anglers... we are many
things, and yet we’re all connected
on the trail. It's this lifelong love of
the trail that enables our designers
to create footwear that's remarkably
durable, comfortable, and always
worthy of the task at hand. Our
philosophy is simple. Design the kind
of footwear that we'd want to wear.
FINANCIALCHANNELS
NZD
$61.3m
Total sales
Direct-to-consumer
website
650,000
pairs of shoes sold
Over 2,000
Wholesale doors
Online
2%
Wholesale
98%
BY
CHANNEL
SALES MIX
7KMD Brands Annual Integrated Report 20226
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

Rip Curl, the ultimate surfing
company, was founded in 1969 in
Bells Beach, Australia. For more
than 50 years, Rip Curl has been
a market leader in surfing and
synonymous with surf culture.
The reason for this is simple – our
products, events, athletes, customer
service and brand messaging
are the best in the industry. ‘The
Search’ is the driving force that
led to the creation of Rip Curl and
it lives in the spirit of everything
we do. All Rip Curl products are
made by surfers for surfers. Our
vision is to be the ultimate surfing
company in all that we do.
Other
2%
Rest of World
12%
Europe
18%
Retail
Stores
46%
AU & NZ
45%
Online
7%
North America
25%
Wholesale
45%
BY
CHANNEL
BY
REGION
FINANCIAL
SALES MIX
CHANNELS
NZD
$536.8m
Total sales
NZD
$36.9m
Online sales
Representing 13.0% of
direct to consumer sales.
161
Owned stores
228
Licensed stores
26
JV stores
Over 6,000
Wholesale doors
9KMD Brands Annual Integrated Report 20228
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

Highlights and Lowlights for FY22
International freight
price increases
$979.8m
Group Sales
58.9%
Gross margin
$92.0m
Underlying EBITDA
1
$36.2m
Underlying NPAT
1
$40.1m
Net debt
$43.0m
FY22 dividends paid to shareholders
Successful launch of
the Sawtooth X range
European and
Canadian sell-in for
Fall/Winter 22
Online sales growth
year on year
Same store sales
growth year on year
Impact of COVID on supply chain,
travel restrictions and footfall
1H FY22 demand for wetsuits and
footwear exceeds available supply
Sponsorship of 2021
Rip Curl World Surf
League Finals
LEAD IN ESG
OPERATIONAL EXCELLENCE
ELEVATING DIGITAL
New loyalty
management platforms
for AU & NZ
Underlying
EBITDA margin
9.4% of sales
1
Science Based Targets
submitted to SBTi
1st Sustainability Linked
Loan certificate delivered
Circa 40% FY22 Oboz orders
unable to be fulfilled due to
impact of COVID on supply chain
48%
of Tier 1 Suppliers audits completed
were not fully transparent
Oboz identified restricted
chemical compounds in tongue
pigskin leather
40%
7%
19.1%
Labour resource constraints
Third party imitation of Kathmandu
on social media platforms
1. Statutory results include the impact of IFRS 16 Leases. For comparability, the impact of IFRS is excluded
from Underlying results. Refer to Appendix 1 of the FY22 Results Presentation for a reconciliation of
Statutory to Underlying results.
$35m
Lockdowns in Australasia were more
severe than last year, and less
government support and rent
assistance was received, impacting
year-on-year EBITDA by c. $35m
Strong Oboz online
growth with key
enhancements
Gross margin
maintained despite
inflationary impacts
Kathmandu
Deloitte New Zealand Top 200 Sustainable
Business Leadership award
Oboz
Transitioned to a fully digital product design
and development process
Rip Curl
136 tonnes of neoprene diverted from landfill
Highlights and Lowlights for FY22
HIGHS
HIGHS
LOWS
LOWS
FINANCIALS
BUILDING GLOBAL BRANDS
10KMD Brands Annual Integrated Report 20221110

*Sourced from Gallup Q 12 Engagement Survey conducted during FY22 and is based upon responses received from respondents.
AUSTRALASIATOTAL
Owned Stores261
Licensed Stores18
Wholesale Doors+900
Materials SourcingAustralia,
New Zealand
Factories4
ASIATOTAL
Licensed and JV Stores73
Wholesale Doors+600
Materials SourcingChina, Taiwan, India, Japan,
Thailand, Vietnam, Indonesia,
South Korea, Bangladesh
Factories153
NATIONALITIES OF OUR TEAM*
Australian, New Zealander, Fijian, Tongan , Austrian,
Croatian, Dutch, English, French, German, Greek,
Hungarian, Icelandic, Irish, Italian, Maltese, Norwegian,
Polish, Portugese, Russian, Scottish, Spanish, Swedish,
Welsh, Malaysian, Nepalese, Pakastani, Filipino, Sri Lankan,
Thai, Turkish, Vietnamese, Bangladeshi, Chinese, Indian,
Indonesian, Iranian, Iraqi, Japanese, Korean, Lebanese,
South African, Zimbabwean, Argentine, Brazilian,
Chilean, Colombian, Ecuadorian, Peruvian, American,
Canadian, Cuban, Honduran, Salvadorian, Mexican.
EUROPETOTAL
Owned Stores22
Licensed Stores16
Wholesale Doors+2,200
Materials SourcingItaly
Factories4
AFRICA & MIDDLE EASTTOTAL
Licensed Stores28
Materials SourcingSouth Africa
Factories1
Chiang Mai
Fujisawa, Kanagawa
Bangkok
Bali
Torquay
Christchurch
NEW ZEALAND
AUSTRALIA
INDONESIA
THAILAND
JAPAN
Melbourne
Our World
Global OŒice Locations
NORTH AMERICATOTAL
Owned Stores30
Licensed Stores16
Wholesale Doors+3,900
Materials SourcingMexico, USA
Factories1
SOUTH AMERICATOTAL
Owned Stores3
Licensed Stores103
Wholesale Doors+900
Materials SourcingBrazil
Bozeman
Vancouver
San Clemente
Sao Paulo
Hossegor
FRANCE
BRAZIL
USA
CANADA
KMD Brands Annual Integrated Report 20221213
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and accounting, Abby brings a
strength of knowledge to the
board including knowledge and
capability in ESG governance. Abby
has subsequently taken up the
role of Chair of our Audit and Risk
Committee from John Harvey.
A strong management team
has been established providing
leadership across the Group
representing a balance of executives
originating from each of the Rip
Curl, Kathmandu and Oboz brands.
FINANCIAL
The second half of FY22 delivered
record Group sales and underlying
EBITDA for KMD Brands. Kathmandu
had its highest ever sales for Q4
and Rip Curl sales increased 9.5%
from the prior year to $536 million.
While there was record order
demand for it's products, Oboz was
unable to meet unprecedented
customer demand because of
COVID impacts on supplier capacity,
which has since been scaled up.
Our full year gross margin was
maintained, despite elevated
international freight costs and raw
material cost pressures. Online sales
increased 19%, now comprising more
than 16% of direct-to-consumer sales.
Our strong balance sheet position
allows us to invest in organic brand
growth, which this year included
increasing the investment in brand
marketing and ESG by $18.6 million
year-on-year, as well as strategic
investment in inventory to temporarily
build stock positions given current
supply chain challenges.
DIVIDEND
We have announced a record
dividend payout for FY22, returning
$43 million to shareholders. The
directors have declared a final
dividend of 3 cents per share.
With the 3 cents per share interim
dividend, this will make a total payout
for the 2022 financial year of 6
cents per share. The final dividend
will be fully franked for Australian
shareholders, and not imputed
for New Zealand shareholders.
THANK YOU
I would like to thank my fellow Board
members, the senior management
team and each of the almost
5,000 people employed within
the KMD Brands Group for their
dedication and enthusiasm in what
has continued to be a disruptive
period for our business. Over
the last two years, despite many
challenges, we have built a strong
foundation for future growth.
I would also like to acknowledge
the continued support of
our shareholders.
David Kirk
Chairman
LEADERSHIP & GOVERNANCE
Report from the Chair
Welcome to the first Annual
Integrated Report for KMD
Brands. As Chair of the Board, I
am excited to see the transition
taking place within KMD
Brands from a single brand
ANZ retailer to an owner of
leading global outdoor brands.
In this report, you will find a holistic
overview of our business, including
how we create value for all our
stakeholders, the material issues
that we have encountered this
year, and how we are addressing
these issues and maximising the
opportunities through our business
strategy. We have organised our
report around our strategic pillars to
provide insight about the material
issues facing our Group, what we
have been doing in response, and
our strategic focus going forward.
We will be managing our reporting,
and tracking metrics across our
strategic pillars at a Group, rather
than individual brand level. This year
we will also be publishing our first
combined Modern Slavery Statement
for Rip Curl and Kathmandu. We will
build on the foundation created in
this report over subsequent years as
we are able to provide more depth
in our reporting on our material
topics and strategic approach.
STRATEGY, PURPOSE
AND VISION
FY22 was another period of
transformation for KMD Brands,
albeit not through acquisition, but
rather an internal transformation
through updating the Group strategy
and identity. Through rebranding
to KMD Brands and shaping the
new purpose and vision for the
Group, we now have a fresh identity
which better reflects the family of
global brands that makes up our
Group, while still acknowledging the
company’s heritage. Our purpose is
to inspire people to explore and love
the outdoors. A love for the outdoors
is what all our brands are built
on. Our vision is to be the leading
family of global outdoor brands –
designed for purpose, driven by
innovation, best for people and
planet. Through this new purpose
and vision, all our brands are united
as a group under KMD Brands.
The strategic pillars for our Group
have now been clearly defined,
with senior management roles
established to lead and support
these focus areas to drive success.
These strategic pillars enable a
prioritisation of initiatives within the
business and guide the interactions
between Board and Management.
These pillars support KMD Brands’
growth as a global, multi-channel
business and address the most
important issues facing our business.
PEOPLE
FY22 was the first full financial year
with Michael Daly as Group CEO.
Michael brings a relentless focus on
brand, product innovation, people and
margin. Michael has already delivered
a refreshed corporate identity for the
Group and a clearly defined corporate
strategy which he has implemented
across the business during FY22. We
are looking forward to seeing what
FY23 brings under his leadership.
Last October, we appointed Abby
Foote as a non-executive director.
Abby has over 12 years governance
experience with a range of publicly
listed and Crown-owned companies.
With qualifications in both law
KMD Brands Annual Integrated Report 20221415
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

KEY HIGHS AND LOWS
The year began at a low point, with
first quarter COVID lockdowns in
Australasia resulting in more than
11,000 lost retail trading days for Rip
Curl and Kathmandu. The lockdowns
were more severe than last year,
and less government support
and rent assistance was received,
impacting year-on-year EBITDA
by approximately $35 million.
Oboz saw record order demand for its
products, but was was unable to meet
unprecedented consumer demand,
with the three-month COVID closure
of Vietnam factories, compounded by
international freight delays impacting
approximately 40% of customer
orders. Oboz underlying EBITDA
was $8.5 million below last year.
However, the Group ended the
year on a high. The second half
of FY22 delivered record Group
sales and underlying EBITDA, with
all three brands achieving strong
sales growth in the fourth quarter.
Kathmandu ended the year with its
best-ever sales performance in its
key winter promotion, with fourth
quarter sales and gross margin
both above pre-COVID levels.
Rip Curl achieved full year sales
growth across all channels,
with consistently strong sales
growth through the final three
quarters of the year, following the
impact of Australasian COVID
lockdowns in the first quarter.
Oboz factories resumed full
production in the third quarter of
the year, and strong sales growth
resumed as inventory levels
recovered in the fourth quarter.
PEOPLE
We have put in place a management
structure that will allow us to
leverage operational excellence
and eŸiciencies across all three of
our brands. During the year, Group
executives were appointed from
within our brands to oversee the
Group-wide support functions of
Commercial, HR, Legal and ESG.
Leaders were also appointed from
within our brands to oversee the
growth of all three brands in the
key international markets of North
America and Europe. By establishing
leadership and oversight across
all three brands within these
markets, we can leverage each
brand’s existing local infrastructure
and customer relationships to
grow all brands internationally.
I would like to thank each of our
brands and their worldwide teams for
their continued resilience, flexibility,
dedication and passion over the
past year. The teams once again met
the significant challenges of COVID,
delivering outstanding results given
the circumstances. We can start
looking forward to a post-pandemic
return to normality for our people.
OUTLOOK
The Group is well positioned to
deliver continued sales and earnings
growth in the year ahead, cycling
significant COVID disruption
in the first half of last year, and
continuing the momentum from
the strong final quarter of FY22.
Global macroeconomic conditions
will continue to challenge our
brands, particularly the impact
of inflation on our cost base and
consumer demand. However, we
begin FY23 with the expectation
of uninterrupted trade and the
return of international travel. Supply
chain conditions are improving,
with normalised buying timelines
expected to deliver a reduction in
working capital and increased cash
flow generation in the year ahead.
The Group is well capitalised, with a
strong balance sheet and significant
funding headroom. We are excited by
the opportunity to build a truly unique
global business headquartered in
Australia and New Zealand. We will
continue to invest in the international
expansion of our global brands,
to deliver sustainable long-term
growth for our shareholders.
Group CEO Report
Michael Daly
Group Chief Executive Oicer
PERFORMANCE INSIGHTS
We are pleased with the results
the Group has achieved this year
while navigating the challenging
impacts of the COVID pandemic.
Sales were the highest in the
Group’s history, with growth
achieved across all retail, online,
wholesale, and licensing channels.
The online channel continued to
grow beyond the COVID step-
change. Group online sales increased
19.1% year-on-year, now comprising
16.5% of direct-to-consumer sales.
Wholesale sales grew by 6.9%
overall, despite Oboz COVID supply
challenges, with Rip Curl wholesale
sales growing by 16.5% year-on-year.
Although the Group, like most global
consumer companies, experienced
elevated international freight costs
and raw material cost pressures,
gross margin was maintained year-
on-year. The Kathmandu brand
achieved its highest-ever second
half gross margin result with
currency benefit and a deliberate
strategy to carefully moderate the
historic “high-low” pricing model.
Operating expenses were carefully
controlled through COVID lockdowns,
while continuing to invest for long-
term brand growth. The Group
upweighted investment in brand
marketing and ESG, with an increase
of $18.6 million year-on-year.
Ultimately the Group’s profit result
reflected the impact of COVID in
the first half of the year, plus the
strategic decision to continue
investing for long-term brand growth.
17
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 202216
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

B Corp at KMD Brands
At KMD Brands, our purpose
is to inspire people to explore
and love the outdoors. It is this
purpose that drives our vision to
be the leading family of global
outdoor brands – designed for
purpose, driven by innovation,
best for people and planet.
KMD Brands is led by a talented
group of non-executive directors
supporting an experienced
management team. Over the past
18 months, through this leadership
team, the Group now has a redefined
corporate strategy identifying the
clear pillars and focus areas to drive
future success for the Group.
A key aspect of governance at KMD
Brands is our commitment to the B
Corp movement. Kathmandu first
became a Certified B Corporation
in 2019, and both Rip Curl and Oboz
are currently working towards B
Corp Certification. We are integrating
recognition of our interdependence
with people and planet, the “benefit
mindset”, across our entire business.
This means that, as a business, we
are required to consider the impact
of our decisions on our employees,
our customers, the wider community,
the environment, our business, our
shareholders, and the workers in our
global supply chain. We empower
and direct our employees to make
decisions with the same principles
of wider stakeholder consideration.
Through this approach, we can make
decisions to have an overall positive
impact on people and planet, while
continuing to operate a profitable
business delivering returns to our
shareholders. This benefit mindset
lies at the centre of the Benefit
Corporation or “B Corp” movement.
A B Corp is a diŸerent way of doing
business; it is a business structure
that considers all stakeholders and
balances purpose and profit. B Corps
are a rapidly growing community
driving a global movement of people
using business as a force for good.
B Corps around the world are
together working towards a more
inclusive, equitable and regenerative
economic system. For KMD Brands,
the process of working towards
B Corp certification guides the
priorities of our Environmental Social
and Governance (ESG) impact
strategy and provides a framework
for continuous improvement.
We have amended our Group
Code of Ethics for KMD Brands to
embed the benefit mindset into our
expectations of all employees in the
Group. We are taking this further by
adding ESG responsibilities to the
job descriptions of all employees and
including ESG related objectives as
part of our employee goal-setting
and performance review processes.
In FY23, the Board will consider
proposing a shareholders’ resolution
to amend the constitution of KMD
Brands to add a requirement to
consider the impact of our decisions
on our employees, customers,
suppliers, community and the
environment in our governing
structure at the highest point.
Incorporating this provision
will become a requirement to
maintaining B Corp Certification
for our Group from 2023. We
will bring further information to
shareholders to consider in 2023.
19KMD Brands Annual Integrated Report 202218
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
Our Management Team
Michael Daly
– Group Chief Executive Oicer
Joined Rip Curl in 2002
Chris Kinraid
– Group Chief Financial Oicer
Joined Kathmandu in 2014
Brooke Farris
– Rip Curl Chief Executive Oicer
Joined Rip Curl in 2010
Amy Beck – President Oboz /
Kathmandu North America
Joined Oboz in 2019
Jolann Van Dyk
– Chief Information Oicer
Joined Kathmandu in 2014
Frances Blundell
– Chief Legal & ESG Oicer
Joined Kathmandu in 2017
Linda Barlow
– Chief Human Resources Oicer
Re-joined Rip Curl in 2019
Lachlan Farran
– Chief Commercial Oicer
Re-joined Rip Curl in 2016
The management team
takes care of the day-to-day
management and operation
of KMD Brands, regularly
reporting to the board on all
aspects of Group performance.
A brief biography of each member
of the Management team can
be found in the “Board and
Management” section of the
Company’s Investor Website.
Reuben Casey(previously
Kathmandu Chief Executive
OŸicer) left the Group on 31 July
2022. Michael Daly is currently
the acting Kathmandu CEO.
Tony Roberts (previously Group
Legal Counsel) left the Group on
31 July 2022 with his functions
combined into a new role of
Chief Legal and ESG OŸicer.
Our Board
David Kirk
Appointed 21 November 2013 
John Harvey
Appointed 16 October 2009
Philip Bowman
Appointed 2 October 2017
Brent Scrimshaw
Appointed 2 October 2017
Andrea Martens
Appointed 1 August 2019 
Abby Foote
Appointed 15 October 2021
Michael Daly
Appointed 19 May 2021 
The board provides overall
strategic oversight of KMD
Brands, including adherence
to best-practice governance
principles, maintenance of
the highest ethical standards
and protection of core
values so that the KMD
Brands group is managed
eectively and responsibly.
A brief biography of each
Board member can be
found in the “Board and
Management” section of the
Company’s Investor Website.
Our full Corporate Governance
statement, including Director
skills matrix, is included in
the “Additional Disclosures”
section of this report.
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 2022202120KMD Brands Annual Integrated Report 2022

Our Material Issues
A number of the material issues
facing our business are wholly or
partially outside of our control.
There are actions we can take to
mitigate the risks to our business
that these issues create. We
discuss the impacts of these
material issues throughout our
report and how our strategic
focus areas are informed
and prioritised to respond.
GLOBAL ECONOMIC
LANDSCAPE
Managing the impacts of the global
rising cost of inflation is a critically
important issue for our business
as we experience inflationary
pressures on multiple fronts.
The turbulent geopolitical
landscape, global conflicts and
regional political instability carries
the risk of potential sanctions for
countries, which could impact our
ability to source input materials.
Inflationary pressures and the
ongoing impacts of COVID
are also impacting consumer
discretionary spending habits.
Consumer lifestyles have shifted and
spending patterns are changing.
SUPPLY CHAIN RESILIENCE
The impact of shipping delays, port
congestion and access to regional
freight forwarding has a significant
impact on our ability to move our
products around the globe to
reach our customers. The ongoing
COVID elimination strategy in China
creates challenges in sourcing of raw
materials due to factory closures.
CLIMATE CHANGE
The need for urgent transformative
change to reduce greenhouse gas
emissions is a significant material
issue facing all businesses. Our
commitment and plan to reduce
the emissions connected with our
business and our products is a key
material issue for all our stakeholders.
PEOPLE AND WELLBEING
Attracting talent and retaining
that talent within our businesses
in a competitive labour market
is a challenge. We need skilled
resource to drive our business
strategies and support the
growth potential of our brands.
The wellbeing of people connected
with our businesses is a key
focus. Our stakeholders want us
to focus beyond just health
and safety. Wellbeing is about
resilience, inclusion and recognising
our responsibility to provide a
workplace where everyone can
show up as their true self.
BRAND POWER
The strength of each of our
brands is our material asset and
it is fundamental that we protect
and grow brand awareness
at a manageable pace.
To remain relevant and desirable
to our customers, and ahead
of our competition, we must
deliver products, and provide
a brand experience which is
relevant and appealing.
CHANGE MANAGEMENT
Bringing together our family of
brands to maximise synergies and
optimise operational and financial
performance can be complex
and costly and requires careful
change management processes.
The shift towards the digital
world requires us to keep pace
with future-fit platforms and tools
and to operate with agility.
CYBER AND DATA
SECURITY
The risk and sophistication of cyber
threats is ever increasing requiring
investment in infrastructure which
is resilient and well protected.
We need to respect and protect the
privacy of our customers and the
data assets we hold, and use that
data responsibly and eŸectively.
WHAT MATTERS MOST
Materiality Approach
During 2021, we conducted
a materiality assessment for
KMD Brands for the purpose
of identifying the most
strategic issues for the Group
and its brands to focus on
over the next 3-5 years.
This process involved extensive
stakeholder input and a thorough
review of global trends. We also
considered key topics discussed
by the Board and used the
assessments of our risk register
and global trends to identify the
most material topics we should
be reporting on and addressing.
THE MATERIALITY
ASSESSMENT PROCESS
A total of 745 people were
surveyed or interviewed.
Respondents were asked to rank
a set of ESG issues based on the
importance of each issue to:
•KMD’s continued business success
•the respondent personally
•the health and well-being of society
•a decision to invest in KMD
(i.e., investment community)
•the decision to purchase
from one of our Brands
•the respondent organisation’s
mission along with their viewpoint
on how well the Group was
performing on a given issue.
OUR KEY STAKEHOLDERS
In determining our material
topics we consulted with the
groups who have a substantial
impact on our Group, or on whom
we have a substantial impact
through our business activities:
•Our shareholders
•Our employees
•Our customers
•Suppliers and business partners
•Financiers
•Regulators
•Community groups including our
athletes and brand ambassadors.
23
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 202222
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

3 ICONIC BRANDS, 1 VISION
CREATING VALUE FOR OUR STAKEHOLDERS
FOR CUSTOMERS
Designing innovative,
technical outdoor lifestyle
and sports products.
FOR EMPLOYEES
Providing a place for all people to
realise their full potential.
FOR THE COMMUNITY
Creating positive change in
the communities we impact.
FOR THE PLANET
Striving for a positive impact on
the environment across the
whole life cycle of our products.
KMD Brands form a global outdoor family that creates
high-quality products designed for purpose, driven by
innovation, and best for people and planet. All products
in the KMD Brands family are made specifically for the
outdoors and are tested by experts, out in the elements.
FOR SUPPLIERS
Providing long-term
partnerships, supporting
strong worker wellbeing.
FOR INVESTORS
Paying total shareholder returns.
Providing a sustainable
investment option.
RETAIL AND
WHOLESALE
NETWORK
STRATEGY
How We Create Value
THE RESOURCES WE RELY ON OUR SUPPLY CHAIN
OUR CUSTOMERS
OUR FUNDING
We rely on a strong financial base to
operate and invest for the future and
employ capital from our shareholders
and from debt.
OUR PRODUCTS AND CHANNELS
We invest in our inventory and our
supply chain infrastructure and sales
channels to deliver our products to
our customers.
OUR CREATIVE POWER
We rely on our product development,
design and innovation, which
contribute to the value of our brands.
OUR PEOPLE
Competencies, capabilities and
experience of our employees, our
key asset.
OUR PARTNERSHIPS
We rely on collaboration with our
partners who are essential in making
our business succeed.
OUR ENVIRONMENT
We rely on a healthy environment
for both creating our products and
for our customers to enjoy.
TIER 3
RAW MATERIALS
PROCESSING
TIER 4
RAW MATERIAL
TIER 2
MATERIAL
PRODUCTION
TIER 1
MANUFACTURING
PARTNERS
DISTRIBUTION
CENTRES
KMD Brands Annual Integrated Report 20222425
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

Our Strategic Pillars
27KMD Brands Annual Integrated Report 202226
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
BUILDING GLOBAL BRANDS
We are actively building global brands. This includes extending awareness for
the Rip Curl brand in North America, growing brand recognition in Europe to
a top 3 position, and being the top surf brand in Australasia. We are launching
Kathmandu into North America and Europe during 2022, highlighting its
New Zealand heritage while maintaining its market dominance throughout
Australasia. We are leveraging Oboz’ position as a leader of hike footwear to
grow in the key North American market and expand distribution in Europe.
ELEVATING DIGITAL
Elevating and enhancing our digital execution is a key feature of the
KMD Brands’ strategy. We are investing in platforms that support a
unified customer experience and commerce operations for the whole
Group. This will be supported by the launch of new and improved
loyalty programs that allow for personalised communications.
LEAD IN ESG
Our purpose is to inspire people to explore and love the outdoors. It is this
purpose that drives our vision to be the leading family of global outdoor brands
– designed for purpose, driven by innovation, best for people and planet.
Through this purpose and vision, we commit to having an overall positive impact
on society and the environment, while delivering returns to our shareholders.
We will strengthen our ESG leadership position in our sector through
collaboration and transparency, and by holding ourselves accountable to
stringent, verified standards of social and environmental responsibility as all
our brands work towards becoming B Corp certified.
OPERATIONAL EXCELLENCE
To support the growth of our global brands, we are focusing on collaboration
across our businesses. We are investing in programmes that accelerate
cross-brand opportunities through supply chain eŸiciencies and core-
system capabilities. We are collaborating on product innovation to enable the
products of each brand to continue to lead in their respective categories.
Our strategy consists of four key
pillars - building global brands,
elevating digital, leveraging
operational excellence, and
showcasing leadership in ESG. These
pillars are designed to support KMD
Brand's growth as a global, multi-
channel business and address the
material issues that we face. As we
manage our way through challenging
and disruptive global conditions,
we are focused on having a flexible
balance sheet that allows for capital
returns and future acquisitions. Each
pillar is addressed in more detail
in the following sections, where
we discuss our observations and
response to the relevant material
issues experienced during the year,
together with the challenges and
opportunities ahead. Each of the
capitals, or resources, we rely on to
create value for our stakeholders
are essential for our success. These
capitals are reflected throughout our
discussion on each strategic pillar.
This year, we renewed our
corporate strategy to support
our future as a global, outdoor
family of brands that creates
high-quality products designed
for purpose, driven by innovation,
and best for people and planet.

MATERIAL ISSUES:GLOBAL ECONOMIC LANDSCAPE ‹ CLIMATE CHANGE ‹ SUPPLY CHAIN RESILIENCE ‹ BRAND POWER
BUILDING GLOBAL BRANDS
29KMD Brands Annual Integrated Report 202228
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74
NPS for Rip Curl across 111
Australian stores
73
Net Promoter Score (NPS) for
Kathmandu across all customer groups
#1
Rip Curl rated #1 wetsuit,
boardshort and swimsuit brand
SOURCE: STAB Global Survey, 5000 sample size,
60% USA, 30% Australia, 10% rest of world.
SALES CONTRIBUTION TO
THE GROUP %
Oboz
6%
Kathmandu
39%
Rip Curl
55%
BY
BRAND
OUR OBSERVATIONS
Our Group consists of three iconic
brands designing innovative,
technical products for the outdoor
consumer. The strength of each
of our brands is our material
asset and it is fundamental
that we grow brand awareness
across the globe strategically
and at a controllable pace.
To remain relevant and desirable
to our customers, and ahead of
our competition, we must deliver
products which are relatable and
appealing, delivering on innovation,
being responsibly made, supporting
wellbeing and making the outdoor
pursuits of our customers more
enjoyable, comfortable and inspiring.
During FY22, global economic
conditions driving inflation have
resulted in an increase in the cost
to produce our products and
consequently we have adjusted
the prices for the sale of our goods
to maintain margins. Inflation has
also added pressure to our costs of
doing business. In the US market,
we saw inconsistent trends in
consumer spending sentiment
towards the end of FY22. However,
the strength of each of our brands
is strong, benefiting from the easing
of lockdowns and some return to
international and domestic travel.
OUR ACTIONS
We are investing in the long-term
success of our brands to drive
demand and oŸset any downside
from a reduction in consumer
spending sentiment. We constantly
monitor our pricing and margins,
taking steps where possible to
simplify our product oŸering,
without decreasing quality, in
order to maintain margins and lift
pricing on more technical goods
that justify a higher price point.
During FY22, we invested in the Rip
Curl brand in the US market through
sponsorship of the Rip Curl World
Surf League Finals where the world
champions for the sport of surfing
are crowned. Team sponsorship
continues to be a focus, beginning
with grass roots sponsorship to
support the development of talent
and strengthen awareness of the
Rip Curl brand from the ground up.
We have opened new flagship stores
in key surf destination locations.
We are leveraging and delivering
operational excellence to all brands
across shared support functions,
utilising existing infrastructure and
scale benefits across the Group.
Kathmandu has established new
customer relationships in Europe
during FY22, highlighting its New
Zealand heritage. Showrooms have
been established in Europe and
Canada to draw on existing Rip
Curl infrastructure. New direct to
customer websites in Canada, France
and Germany are under development
for launch in 1H FY23. Kathmandu
has invested in seasonal “Out There”
campaigns to build awareness of
its new brand positioning in the
Australian and New Zealand markets.
Kathmandu also won international
awards at ISPO and Outdoor Retailer
for the NXT Level Bio Down jacket.
By harnessing the specialist
leadership and values that Oboz
is known for in North America we
aim to grow the North American
and Australasian business and
expand into the European market.
During FY22 Oboz has established
a new logistics infrastructure in
Canada to support its growth in the
region. We have also invested in
brand partnerships and are actively
exploring EU market opportunities.
CHALLENGES AND
OPPORTUNITIES AHEAD
There is significant opportunity
ahead with the launch of new and
improved loyalty programs for the
Rip Curl and Kathmandu brands. At
the close of FY22, we launched a
pilot program for Club Rip Curl, with
the full program roll out in Australia
planned for early FY23. A relaunch
of the Kathmandu Summit Club is
planned for later in FY23 with exciting
new benefits for members. Expansion
of the Kathmandu brand into new
international territories provides a
substantial opportunity for the Group.
Challenging global economic
landscape have seen some of our
competitors reduce investment in
brand development. This provides us
with clear opportunities to establish
our brands in new markets and to
expand our points of diŸerentiation.

One of Oboz’ strategic initiatives
is to create distinguishable
product to support the Oboz
brand and the consumer journey.
Comfortable, durable footwear
for the trail is Oboz’s persistence,
drive and ceaseless commitment.
During FY22, Oboz has expanded its
product oŸering into the emerging
“Fast Trail” and “Camp” categories.
These categories provide a
significant market opportunity as key
growth categories for the brand.
The Fast Trail line is built on 1,000s
of miles of underfoot insight truths
engineered into transformative
footwear that breaks away from the
pack. The result is better foot health,
better adventures and a better kind
of Fast + Light experience. The
kind that sacrifices nothing, so you
can give it your everything. The
fast trail category is a natural brand
extension for Oboz with a focus
on stability, durability and fit, with
technology at the core. This range of
products provides the opportunity
to attract a new, younger, female
consumer, to take market share from
our competitive set and to have
some fun with colour expansion.
The Camp line provides an option
for adventures near and far, even
for the customer who doesn’t need
to leave home. The Camp category
meets adventurers where they like
to spend time during their most
favourite moments outside, no
matter the season. With a focus
on fit and recovery, the Whakata
franchise has shown strong
growth for Oboz during FY22.
In March 2021, the World Surf
League (WSL) and Rip Curl came
together to announce a three-
year sponsorship deal, the Rip
Curl WSL Finals, a new one-day
inaugural event to be held in San
Clemente, California at Lower
Trestles. Often referred to as
the most high-performance
wave in the world, there is
nowhere to hide at Lowers.
A new one-day competition
format where, after the regular
Championship Tour season, the
top five men and top five women
surf with a winner-take-all shot for
the world title. To win requires a
unique combination of technical
mastery and explosive innovation.
The WSL Finals waiting period ran
from September 8 – 17, 2021.
September 14th, 2021 saw all-time,
six-to-eight foot southern bombs
pour into the Lower Trestles. The
line-up displayed perfect conditions
from start to finish and became
the most watched day in the
history of professional surfing.
The Rip Curl WSL finals in the
USA drew a record 6.8 million
live video views as surfing fans
globally witnessed the crowning
of the 2021 male and female
world surfing champions. Rip Curl
team rider Gabriel Medina won
his third world title, driving both
viewership and Rip Curl’s claim on
professional surfing in the USA.
"The inaugural edition of the Rip
Curl WSL Finals was an incredible
success," said Erik Logan, WSL CEO.
"To see the WSL Finals go head-
to-head in amazing waves and to
witness the women's and men's
World Titles decided on the same
day, in the water, for the first time was
special. This new format captivated
our audience and drove consumption
like never before and was the most-
watched day of professional surfing
with the largest live digital audience
in WSL history. We are excited to
return to Lowers this season."
For Medina, this is his third World
Title and puts him amongst some
very heavy company. He joins
surfers such as Tom Curren, Andy
Irons, and Mick Fanning. "I feel
so happy. It is not everyday you
accomplish your dream," Medina
said afterward. "It feels so good to
dream. Every dream seems to be
impossible until it is done ... I had this
dream in my mind for a long time."
31
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 202230
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
Oboz Adventures into
New Categories
CASE
STUDY
Rip Curl World Surf
League Finals
CASE
STUDY

16.5%
Online penetration as a % of
direct to consumer sales
19.1%
Growth in total
online sales year on year
NZD
$109.6m
Total online sales
ELEVATING DIGITAL
OUR OBSERVATIONS
Consumer spending patterns have
changed. The COVID pandemic
and global economic conditions
created a shift in customer lifestyles.
Customers are more discerning.
They are looking for personalised,
inspiring shopping experiences and
expect to have access to a unified,
omni-channel, seamless oŸering.
Strength in our digital capabilities
is vitally important to protect
the reputation and expand
recognition of each of our brands.
Our customers want to engage
with us in diŸerent ways and our
modes of communication and
methods of making transactions
must shift. We need to elevate
our digital oŸering to deliver on all
these customer expectations.
It is essential that we harness data
driven insights to drive our decision
making and accelerate growth across
our direct-to-consumer business. We
must use the customer data we hold
eŸectively, while keeping the data
secure. We embrace digital across our
entire organisation to enhance the
experience of our employees, to drive
eŸiciency and to support innovation.
We must keep pace with future-fit
platforms and tools and to operate
with agility. This requires careful
change management processes.
We need to verify that impacts to
interconnected business procedures
are considered and that all aŸected
stakeholders are consulted.
The Group recognises that its
businesses operate in an increasingly
connected world where information
and cyber threats continue to evolve
and challenge not only information
assets, but the Group’s ability to
interact with customers, suppliers
and prospective employees.
Through its interactions with
diŸerent stakeholders the Group
is entrusted with various personal
details, and the organisation
recognises that any compromise of
this information while under its care
could cause harm and significantly
damage the Group’s reputation.
OUR ACTIONS
During FY22, we have been
improving our digital execution
with our continued investment in
whole-of-group ERP (enterprise
resource planning) platforms
that support a unified customer
experience and commerce
operations. We have enhanced our
online platforms by launching a
new headless e-commerce platform
for Kathmandu which we will roll
out across each of our brands in
subsequent reporting periods.
We have laid the foundations
for providing an omni-channel
experience for our customers by
upgrading our point-of-sale system
in New Zealand and Australia,
rolling out click and collect for
Kathmandu and maximising
fulfilment from store capabilities.
We have focussed on data insights
by implementing a customer
data platform which will provide
us with a single view of our
customer interactions across
brands and allow personalised
communications to support a
unified customer experience.
The Group has established a set
of security standards that detail
the steps taken to secure our
systems and information from a
people, process, and technology
perspective. This Framework
aligns to the ISO 27001 series of
standards for Information Security
Management Systems (ISMS)
and Risk Management. During
FY22 there were no notifiable
data breaches for the Group.
CHALLENGES AND
OPPORTUNITIES AHEAD
The next phase of our strategy
to elevate digital will see a focus
on personalisation, with our new
personalisation engine for tailored
customer content and oŸers. This
will integrate with our loyalty platform
to provide a better experience for
our customers and provide greater
opportunity to harness data insights
about what our customers want and
unlock growth potential for online sales.
For Kathmandu, we will also
incorporate ‘endless aisle’ capabilities
to provide our in-store customer with
the option to order products either
not normally sold in a specific store,
or where that physical store is out
of stock of a particular item. These
initiatives provide an opportunity to
give customers a seamless shopping
experience which contributes to
our brand power and consumer
engagement. Kathmandu will also
launch new direct to customer
websites in Canada, France and
Germany to support the expansion
of the brand into new territories.
For Oboz, we will enhance the
business-to-business dealer portal
platform to build our educational
and technical resources to better
facilitate dealer knowledge and
expertise in the sale of products.
Cyber threats and increasingly
sophisticated threat actors are an
ongoing challenge and risk for our
business, and all businesses. We
must stay vigilant to these threats
and continue to invest in industry
leading tools to protect our systems
and data, embedding risk-based
processes across our businesses and
keeping across global best practice.
MATERIAL ISSUES:GLOBAL ECONOMIC LANDSCAPE ‹ CYBER AND DATA SECURITY ‹ CHANGE MANAGEMENT ‹ BRAND POWER
33KMD Brands Annual Integrated Report 202232
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

Connecting to Customers
Through New Digital Experiences
This year, Oboz continued
to invest in new digital
tools to better connect with
customers and improve its
digital brand presence.
Following the launch of the direct-
to-consumer website in 2021, we
emphasised the functionality of our
Shoe Finder, which collects customer
preferences and delivers footwear
recommendations, in addition to Find
a Store, which shows site visitors a list
of nearby retailers for each product.
This year, we also improved our
digital resources for dealers and staŸ
members. We created comprehensive
online training and a list of frequently
asked questions. We also added
marketing assets and technical
information to this online resource.
Consumers were also invited
this year to partake in the Oboz
Trail Experience, a challenge that
encourages participants to learn
about new trails and rediscover old
favourites. Month-long challenges
based in diŸerent parts of the United
States allow trail users to complete
as many trail segments as possible.
“The Oboz Trail Experience is a
combination of an in-person and
virtual event that helps to get
community members on trail,
whether it is a familiar or newly
identified route,” says Abigail
Cook, Digital Content Manager.
The Oboz Trail Experience took
place in seven locations in 2022.
Each experience includes more than
100 miles of trails to explore, and
more than 1,100 people participated
in total. Trail miles are logged via
the Strava app, and participants are
encouraged to share their images
and trail experiences on social media.
Using Technology to
Build Community
The launch of our new Club
Rip Curl members programme
promises to radically improve
our customer engagement.
The goal of Club Rip Curl is
to become the largest and
most engaged surf and beach
community on the planet.
Customers will be able to earn
rewards from purchases, referrals and
product reviews or even by going
for a surf. Points can be spent on
products or donated to protecting the
environment through our partnership
with SurfAid. In the future, members-
only experiences will also be
available to purchase with points.
The technology behind the system
was developed in partnership with
Kathmandu. The KMD Group’s
commitment to elevating digital
means the technology is aligned
across brands, building synergies
and economies of scale.
Connecting customers’ surfing stats
to our membership programme
is a world-first achievement.
Using our own SearchGPS Surf
watch, we can track waves
caught, top speed and distance
travelled that, when uploaded
to our GPS app, will generate
points to use in store or online.
“We have never had a unified
customer in our tech stack. It’s
always been siloed between
e-commerce and our bricks and
mortar stores, so one main goal is
to bring those two environments
together from a membership
and data perspective,” says Sam
Hopgood, Membership Manager.
“For the first time, all our customers
will be connected to the one
ecosystem where we can create
a single view of the customer
and in turn deliver personalised
communications and create a
greater customer experience
for our brand advocates.”
Internally, the programme will help us
to better know our consumer, to drive
incremental frequency and to build
a loyal and connected community.
The programme launched in July
with five stores, expanding to
Australia and New Zealand in August.
The rollout will continue to Europe,
USA and Canada in 2023/24.
35
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
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35
CASE
STUDY
34
CASE
STUDY

58.9%
Gross margin maintained
year on year
7%
Same store sales growth
year on year
OPERATIONAL EXCELLENCE
OUR OBSERVATIONS
To support the growth of our
global brands, we are focussed on
leveraging the synergies between our
brands through shared knowledge
and collaboration. We achieve this
through programmes that accelerate
cross-brand opportunities that allow
us to optimise our supply chain,
invest in core-system upgrades and
collaborate on product innovation.
Inflationary pressures and supply
chain challenges this year have
made this increasingly important. We
have seen costs increase across all
aspects of producing our products
– from raw materials, manufacturing
costs, freight and internal wage
costs and to the cost of our funding.
Through operational excellence,
we aim to optimise operational and
financial performance. It will also
help us manage our costs eŸiciently
and maximise productivity.
Factory closures during FY22
impacted our ability to deliver
products, particularly closures in
Vietnam which impacted delivery
for Oboz customers. The risk of
port congestion and shipping
delays has complicated our supply
chain and delivery timeframes,
although congestion eased as the
year progressed. The compounding
supply chain challenges resulted
in a higher-than-expected level
of inventory in our distribution
centres at the end of FY22, a
result of a very disruptive period
for global supply chain logistics.
The systems and processes in our
supply chain impact our carbon
footprint and the waste produced
through our operations. We
recognise the impacts generated
by the logistics partners and
transportation methods we choose
to move products, as well as the
waste produced in the manufacture,
distribution and sale of our products,
and ultimately where our products
end up when they have reached
the end of their useful life.
OUR ACTIONS
In response to global economic
conditions and inflationary impacts
on the cost of goods this year,
we have sought opportunities to
improve and optimise the underlying
operational and financial performance
of the Group, to manage our costs
eŸiciently and maximise productivity.
In response to the COVID closures
disrupting supply and the need
for increased capacity to meet
order demand, we accelerated
plans to add a new supplier to the
Oboz factory network to increase
diversification of production.
By collaborating across our brands,
we have also been able to relieve
supply chain pressure points
by reallocating storage space
and utilising freight forwarding
relationships eŸiciently. Now that
supply chain delays, factory closures
and port congestion issues are all
easing, we continue to refine our
planning and buying processes
back to traditional timelines.
We have integrated some key
operating systems across our brands
in the past financial year which can
be challenging as our people learn
to use and adapt to new systems
and processes. The cost and time
required to complete these projects
is a necessary investment in a
resilient system for the future.
CHALLENGES AND
OPPORTUNITIES AHEAD
Looking forward, we will focus on
optimising supply chain logistics
through alignment of factories
across our brands and consolidating
freight vendors to deliver gross
margin benefit. We are a significant
retail tenant in Australasia. We will
continue to leverage this scale
to drive commercial outcomes
across our brands. We will utilise
existing Rip Curl physical and
systems infrastructure in the
Northern Hemisphere as we
expand the Kathmandu and Oboz
brands into these markets. We will
explore consolidation production
volumes across brands in like
categories to common suppliers to
leverage our purchasing power.
Climate change is acting as a
catalyst for disruption and our
business regularly monitors emerging
technologies to see how they
could aŸect our business. We must
proactively adapt to and adopt the
latest technologies in our supply
chain and direct operations that will
reduce the cost of our operations and
increase the resilience of our systems.
MATERIAL ISSUES:GLOBAL ECONOMIC LANDSCAPE ‹ SUPPLY CHAIN RESILIENCE ‹ CHANGE MANAGEMENT ‹ CLIMATE CHANGE
37KMD Brands Annual Integrated Report 202236
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

DEMAND INCREASE MEETS
SUPPLY SHORTAGES FOR
RIP CURL
This year, record numbers of
people took to the ocean, fuelling
a huge increase in wetsuit sales.
This unprecedented increase in
demand coincided with global
material supply shortages. CR,
or Polychloroprene chips that
are used in making wetsuits are
also used in cars, surgical gloves
and many other products.
“What used to take us 30-40
days to source now takes up to
12 months,” says Rip Curl General
Manager – Product Nichol Wylie.
“We are confident that our OnSmooth
Wetsuit factory and our suppliers will
be able to improve wetsuit deliveries
this coming year,” says Nichol.
COVID CLOSURES DISRUPT
OBOZ SUPPLY
A nearly three-month closure of Oboz
factories in Vietnam meant 300,000
customer orders were delayed.
When orders did begin leaving
Vietnam again, there were
bottlenecks at nearly every step
in the chain.
As a result, Oboz has diversified
its supply chain, accelerating plans
to bring a new factory onboard.
A new Canadian warehouse also
reduces road freight emissions by
sending goods direct to Vancouver
rather than Los Angeles.
“We’re proud of the fact that
despite the delays, we were
able to make sure we didn’t
cancel any orders with our
already hard-hit suppliers.”
Oboz Supply Chain and
Demand Planning Manager
John Nehring.
Collaboration Reduces Pain of
Unprecedented Supply Chain Crisis
CASE
STUDY
As General Manager, Group
Supply Chain, Dianne Fuller
has just overseen the most
disruptive period of her 40-year
career in supply chain logistics.
“I can honestly say, I’ve never
experienced anything like this,”
she says. “The most significant
challenges have been around
shipping - and that’s been impacted
by many things, not just COVID.”
Dianne explains that shipping runs
in a global circuit, so delays in one
part of the world have flow-on effects
for the rest. “When a ship blocked
the Suez Canal for six days in 2021,
it created a massive traffic jam all
the way through to Asia and New
Zealand, which stopped products
being able to reach us on time.”
Supply and demand also plays a
part. COVID caused huge demand
in Europe and the USA, which
saw large vessels redirected from
Australasia to cope with demand.
This lowered the freight supply
to Australia and New Zealand,
pushing up prices by up to 600%.
Some challenges were solved by
collaborating across the Group.
When Oboz Vietnam factory closed,
Kathmandu used its relationships in
Vietnam to find storage for stock.
And when Kathmandu needed to
get product into a new Canadian
market, Rip Curl’s freight forwarder
was able to make it happen.
Dianne’s role at KMD Brands Group
level helps to drive this collaboration
and give the Group better visibility
across all three brands.
SHIPPING DELAYS AFFECT
KATHMANDU DELIVERIES
Shipping delays have flow-on effects
for everyone else. Kathmandu
distribution centres, which were
equipped to process 60-container
deliveries, were suddenly scrambling
to process 100-container deliveries.
“It was a significant juggling
act to get product to store
for launching on time,”
Dianne says.
“It was our amazing people,
across planning, merchandising
and distribution, that used their
problem solving skills and their
relationships with suppliers to
miraculously deliver 84% of stock
on time for Kathmandu stores.”
39
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
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SUSTAINABLE DEVELOPMENT GOALS
We acknowledge the impact of our businesses on
people and planet and accept our responsibility
to advance the Sustainable Development Goals.
We have incorporated these goals into our ESG
strategy which underpins all our business activities.
An equitable, inclusive workplace representative of the diversity within our communities including:
•40:40:20 gender representation in leadership positions (Board, Executive and Management)
•Increased representation in employment of local Indigenous Peoples and people from ethnic or racial minorities
Genuine transparency of, and e©ective worker voice communications with, strategic suppliers
for each brand
Supported local community projects, through donations, fundraising and paid employee time,
to create a positive impact for the wellbeing of people and planet
Reduced absolute Scope 1 and 2 emissions by a minimum of 47% by 2030, from a FY19 base year
(4.2% per annum emissions reduction)
Reduced absolute Scope 3 emissions by a minimum of 28% by 2030 from a FY19 base year
(2.5% reduction per annum)
Commercialised brand-led circular business models for product take back, renewal, repair, re-commerce
or recycling
Dedicated to our own-brand products being responsibly sourced
Reduced operational and packaging waste including:
•Diversion of 90% of waste to landfill from our direct operations by 2030
•All primary and secondary packaging and promotional material is recyclable or made using recycled materials by 2030
OUR GOALS
KMD Brands ESG Strategy
OUR VISION To be the leading family of global outdoor brands – designed for purpose,
driven by innovation, best for people and planet.
LEAD IN ESG
In this section, we report on our overall impact on society and the environment, including the capitals
(resources) we rely on to create value, within the context of our strategic objective to Lead in ESG.
We have structured this section by reference to the framework of the KMD Brands ESG Strategy; organised
around the focus areas of Communities, Climate and Circularity. We have described our goals in each
focus area, reported on the baseline data where possible, and integrated our reporting to Global Reporting
Initiative (GRI) and Sustainability Accounting Standards Board (SASB) requirements where applicable.
OUR PILLARSOUR FOCUS AREAS
Positively impact the wellbeing
of people and places impacted
by our brands
•Provide a people-centred culture and workplace that
fosters health, safety, wellbeing and inclusiveness
•Protect human rights and dignity by addressing modern slavery
in our value chain through collaboration and transparency
•Engage, inspire and protect the communities
where we operate and impact
•Foster and invest in circular business models across
our businesses
•Increase responsible material content in our products
•Reduce the waste footprint created across our businesses
•Reduce emissions in line with the Paris Climate Agreement goals
Transition to a low carbon future
Eliminate the linear take-make-
waste approach to business
KMD Brands Annual Integrated Report 20224041
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highly supported across our teams.
During the year, Kathmandu won
the AFR Boss Best Places to Work
in the retail, hospitality, tourism
and entertainment categories.
We have continued to understand
and support the needs of our
employees and adjusted our policies
and practices in response. We have
a range of wellbeing initiatives
in place across the Group from
providing employees with access
to counselling and safe workplace
practices, to COVID protocols such as
additional sick leave and flu vaccines.
An awareness and responsibility
to address mental health and
wellbeing has been embedded into
our business from senior executive
through to store manager level.
Our Group eŸiciencies enable us to
put the right initiatives in place to
support the needs of our people.
By combining the service providers
we use for wellbeing programs
and services we can make these
services more accessible to our
employee network across the globe.
CHALLENGES AND
OPPORTUNITIES AHEAD
Attracting, developing and retaining
employees is crucial to our ongoing
business success. In a challenging
labour market, we need to foster
an employee value proposition that
showcases each of our brands as an
employer of choice. Our commitment
to diversity and inclusion goes
beyond championing gender
equality. Improving and evolving an
inclusive and collaborative workplace
culture is a shared passion across
all our brands that enhances the
Group’s competitive advantage.
With the shifting ways of working, we
need to find ways to maintain critical
culture and team dynamics and to
support the development of skills and
capabilities needed for the future.
Our People, Our Communities
PEOPLE
OUR OBSERVATIONS
We are focussed on positively
impacting the wellbeing of people
and places touched by our brands.
We want to be the best for our people
by providing a people-centred culture
and workplace that fosters health,
safety, wellbeing and inclusiveness.
We harness the power of our team
collectively working together, where
all people are embraced and valued
for who they are and are encouraged
to grow with us. We foster inclusivity
and diversity across our businesses
to inspire all people to explore and
love the outdoors and to provide
a workplace where everyone
can show up as their true self.
Attracting key talent and retaining
that talent within our businesses
in a competitive labour market
has been a challenge during FY22.
We have experienced issues with
recruiting skilled people to drive our
business strategies, particularly with
border restrictions in New Zealand.
While the threat of COVID has
reduced during FY22, the impact
to our business and our people
has remained considerable. Social
distancing measures and mask
requirements have required our store
teams to pivot quickly in response.
Maintaining adequate staŸing levels
despite frequent absences due
to illness has created significant
challenges, albeit challenges our
retail teams have responded to
with resilience and determination.
The impacts of COVID remain
significant, despite the reducing
threat, and the need for initiatives
to support the wellbeing of our
teams is greater than ever.
In the last two years, through the
pandemic and recurring periods of
lockdown and travel restriction, there
has been a significant change in
the ways of working for our teams.
This has an impact on people’s
wellbeing and the methods we
use to stay connected and keep
people engaged. In a dynamic
and disruptive landscape, we are
focussed on supporting a thriving
and engaged team who know who
we are and what we stand for.
OUR ACTIONS
During FY22, we completed the first
global diversity survey across all of
our brands providing us with valuable
insights about the backgrounds of
our employees so we can support
what matters most to them. The
Group seeks out the best talent
from around the world to join its
brands and is proud to have a broad
range of nationalities and ethnicities
represented within our team, a
diverse cross-generational team,
and strong female representation
across the Group. While we are
reporting on our baseline statistics
for this year following completion
of this survey for the first time at a
Group level, going forward we will set
more specific targets in this area.
We have continued to conduct
engagement and satisfaction surveys
across the Group. FY22 was the third
year of using the Gallup standardised
approach with an emerging
maturity in the understanding
across management teams of the
insights this tool can provide. In
FY22 we introduced pulse surveys to
capture an assessment of employee
engagement in particular focus
areas within the business. Language
around engagement is becoming a
key part of our conversations and is
MATERIAL ISSUES:PEOPLE AND WELLBEING § CHANGE MANAGEMENT
KMD Brands Annual Integrated Report 202242
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ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

GOALS
An equitable, inclusive workplace
representative of the diversity within
our communities including:
•40:40:20 gender representation in leadership
positions (Board, Executive and Management)
•Increased representation in employment of local
Indigenous Peoples and people from ethnic or
racial minorities
Goals and
Performance
45
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
44KMD Brands Annual Integrated Report 2022
As at 31 July 2022, sourced from employee payroll data.
4,887
Total Employees
35%
Male
64%
Female
1%
Another Gender or prefer not to say
GENDER DIVERSITY OF OUR EMPLOYEES
GENDER DIVERSITY ACROSS MANAGEMENT LEVELS

Male

Female

Other/prefer not to say
56%44%
71%
71%
29%
29%
59%41%
42%58%
33%66%1%
FY22
Board
Group Executive
Brand Executive
Senior Management
Management
Non-Management
Sourced from Gallup Q 12 Engagement Survey conducted during FY22
and is based upon responses received from respondents.
14%
of our team identify as LGBTQIA+
Kathmandu / Oboz 17%, Rip Curl 12%
12%
of our team are living with a disability
Kathmandu / Oboz 15%, Rip Curl 11%
MINORITY REPRESENTATION IN OUR TEAM

Employing Easwari
CASE
STUDY
Kathmandu Chadstone Store
Manager Zoe Platt’s best
friend has a daughter with
down syndrome. Through this
connection, she understands
first-hand some of the struggles
people with down syndrome face.
So when she heard of a down
syndrome woman who was having
trouble finding work, she didn’t
hesitate to line up an interview.
“Easwari came in for an interview
with her carer. We worked with our
human resources team to create a
role specifically for her which entails
back-of-house work, some greeting
and a few sales. We try to keep the
routine the same every day,” Zoe says.
For more than a year now, Easwari
has been working two four-hour shifts
a week and the role has become a big
part of her week, where she develops
social skills and independence.
“She loves it. She’s earning her
own money and she gets the
bus here on her own now.”
Zoe says the team has welcomed
Easwari. She’s proud to show that
there are businesses who are willing
to be patient and flexible employers.
“For me, it’s nice to know I’ve
done a little something to help
someone else’s journey.”
Employing Easwari is a natural
fit with Kathmandu’s values:
courageous, joyful, open.
“Working at Kathmandu
makes me feel happy,
because everyone helps me
and they make me laugh.”
Easwari
because everyone helps me
and they make me laugh.”
Easwari
Reflecting on Reconciliation
CASE
STUDY
Rip Curl has begun its cultural
journey to develop a Reflect
Reconciliation Action Plan
(RAP). There are four RAP
stages – Reflect, Innovate,
Stretch and Elevate – which
allow organisations to
continuously develop their
reconciliation commitments.
Rip Curl is at step one, Reflect.
To ensure we had a cultural lens
and understanding before creating
our RAP, Rip Curl engaged First-
Nations cultural consultancy firm,
Arranyinha. Co-founder Marsha
Uppill ran a series of workshops that
took our team through a journey
of discovering what reconciliation
looks like both individually and
as an organisation. We looked at
how we can align the values of the
organisation and create actions that
bring about true reconciliation.
The workshop created a company vision for reconciliation to reflect this:
New flags have also been
permanently raised to acknowledge
this respect to all Aboriginal and
Torres Strait Islander peoples.
Our Reflect RAP will be made
publicly available on our website
and via Reconciliation Australia's.
The Reflect RAP will list our
considerations and the actions
we will take to acknowledge and
support indigenous Australians.
"We have a deep desire to
learn the history of
Wadawurrung country, the
people and that of our nation.
We can advance reconciliation
through discovery, education,
creating opportunities and
driving change."
Brooke Farris, Rip Curl CEO
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
Rip Curl is committed to the
oceans, lands and communities
in which we search.
We recognise First Nations
peoples, elevating our
learnings of their cultures
and acknowledging their
leadership and traditions.
Rip Curl embraces our
responsibility to bring
awareness and inspire
positive change.
Together we walk towards
reconciliation with honesty,
integrity and respect.

other stakeholders to positively
impact the challenges that can lead
to modern slavery. Looking forward,
we will track and report on the year
on year increase of worker voice
survey tools in our Tier 1 factories.
But the challenge does not stop
there. We only have partial visibility
into Tier 2 (suppliers of our
manufacturers) in our supply chain
and almost no visibility into the high-
risk Tier 3 and Tier 4 raw material
suppliers. Improving transparency
of our supply chain is an important
ongoing challenge for our brands
and is a key focus area for us. We
will trace and publish the input
suppliers (Tier 2) of our strategic
Tier 1 suppliers and work to increase
the number of Tier 2 suppliers
identified and published each year.
In support of our community
outreach programmes, each of
our brands will further embed
community partnerships and
programmes to create awareness
around the work that our community
partners undertake. We will
expand the opportunities for our
employees to take part in initiatives
in their local communities.
"Best practice in ESG is not
solely about assessing the
risks to our business. It is
equally about assessing the
risks of our business
decisions and practices to
both people and the planet."
Gary Shaw, KMD Brands
Social Impact Manager
Our People, Our Communities
COMMUNITIES
OUR OBSERVATIONS
There are many communities
impacted by, and impacting, our
brands; from the community
of workers in our supply chain
manufacturing our products to
the local environments where our
employees and our customers
play and explore. We want to
engage, inspire and protect
all of the communities where
we operate and impact.
The root causes of forced labour
have been exacerbated as a result
of the COVID-19 pandemic exposing
vulnerable individuals and families
to the risk of modern slavery.
Human rights groups have identified
cases within the global textiles
and apparel industry of business
owners profiting from slavery. As a
publicly owned company that exists
to inspire people to explore and
love the outdoors, protecting and
promoting the wellbeing of workers
in our global supply chain is integral
to our identity, values and purpose.
Awareness of the climate crisis
is now well understood and on
business, political and social
agendas. All our stakeholders expect
that we take action to address
the risks of climate change to our
business and reduce the impact
of our business on the climate.
OUR ACTIONS
We are prioritising transparency
about the challenges faced by our
suppliers and the impact these issues
have on their workers. Throughout
the year, we have continued to
concentrate on protecting human
rights and dignity by addressing
modern slavery in our value
chain through collaboration and
transparency. We have widened
our impact by working with other
sectors, government agencies,
human rights groups and, in some
cases, our direct competitors, to
facilitate and encourage a more
innovative and collaborative approach
to these human rights issues.
Kathmandu has continued its
partnership with Deloitte in co-
hosting the Collaborative Advantage
working group, a collection of
New Zealand businesses sharing
insights and driving collective action
to collaboratively address social
and environmental challenges.
Membership of the group has grown
steadily since its inception in October
2020 to include a wide variety
of large and small organisations
from diŸerent industries.
Each of our brands support
community partnerships and
projects that are meaningful to their
individual purpose and values. Our
team members’ love for the outdoors
is what draws them to our Group of
brands. We support and encourage
all our team members to be a part of
our eŸort to make a positive social
and environmental impact and to
reduce the emissions connected with
our businesses and our products.
During FY22 we have strengthened
the community partnerships and
programmes for each of our brands.
These initiatives are aligned to
the values of each brand and
provide opportunities for our
team members to take part.
CHALLENGES AND
OPPORTUNITIES AHEAD
We want to go beyond auditing
by focussing on how we can
collaborate with our suppliers and
MATERIAL ISSUES:PEOPLE AND WELLBEING § CLIMATE CHANGE
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ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

72
Tier 1 and 2 suppliers reporting on
environmental performance (Higg FEM)
64%
of our suppliers are in China where freedom
of association is at risk
88
Tier 1 suppliers we partner with
420
Corrective action plans
100%
New Tier 1 suppliers screened against KMD Brands
Code of Conduct
163
Tier 1 factories making our
branded product
109
Copy audits accepted (audits
completed by other brands)
54
Audits completed by our third party
auditor, Elevate Limited
11
Tier 1 suppliers exited during FY22
approx 500
Hours KMD Brands staŸ ESG training
during FY22
60%
of suppliers, (by spend) reporting on their
environmental footprint (HIGG FEM)
60%
of head oŸice staŸ received
training in ESG in FY22
1st
Ethical Voice worker
survey completed,
assessing the wellbeing
of 100% of workers
24
Worker
sentiment
surveys in
place
91%
of Tier 1 suppliers independently
verified by Elevate as accountable to
Code of Conduct under Sustainability
Linked Loan as at May 2022
3
Tier 2 suppliers accountable to
Code of Conduct
Our high-risk countries for child and forced labour are
China, Vietnam, Indonesia, Bangladesh, Cambodia, India,
Mexico and Thailand
WORKING WITH OUR SUPPLIERS
Child labour and forced labour
are common in the international
apparel industry, especially in Tier
3 and Tier 4 (raw materials). Our
focus is to improve the traceability
and transparency of our Tier 2
(suppliers of our manufacturers)
in our supply chain and gain
visibility into the high-risk Tier 3.
Of the 54 Tier 1 audits completed by
Elevate, 48% of those audits were
GOALS
Genuine transparency of, and eective
worker voice communications with, strategic
suppliers for each brand including:
Accountability to KMD Brands
Code of Conduct:
•Tier 1 suppliers: 100% accountable
•Tier 2 suppliers: Increase by at least one for
each brand per year
Transparency:
•Tier 1 suppliers: % increase year on year where
worker voice survey tools are in place
•Tier 2 suppliers: Trace and publish the input
suppliers of our strategic Tier 1 suppliers
not fully transparent. This lack of
transparency is the most significant
potential negative social impact as
it means our business partners are
breaking our trust and violating our
Code of Conduct, and their disclosed
ESG data cannot be relied upon.
The number of copy audits we
completed this year was higher
than usual because of the impact
of COVID. These audits are
completed by trusted third parties
who know the local language
and understand the culture.
Approximately 10% of suppliers
improved their transparency this
year, which has in turn led to an
increase in corrective action plans.
Goals and
Performance
5051KMD Brands Annual Integrated Report 2022

An example of this occurred in
June 2022 when a mechanic from
one of our Kathmandu suppliers
sent a WeChat message to us. He
alleged that the factory making
our product was in the process of
shutting down and reallocating our
supply, without our knowledge. He
further claimed that even though he
had worked there for 15 years, the
factory management had not paid
him or his colleagues the legally
required minimum severance pay.
A case had been filed at the local
court and was set to proceed as part
of a lengthy arbitration process.
Our ESG Specialist based in China
contacted the worker and after
gaining further details, she then
contacted the supplier. They
confirmed that indeed they were
closing the factory and had neglected
to inform us. They also confirmed
that the worker in question had been
dismissed along with his colleagues
and that his severance pay was in
dispute. Referencing our company
code of conduct as well as our agreed
terms of trade, Kathmandu was able
to negotiate with the supplier who,
in turn, put pressure on the factory
management. Ultimately, a mutual
agreement was reached to the
satisfaction of all involved and the
informant withdrew his complaint.
Moving forward, rather than capture
just a sample of workers during an
audit or worker survey, KMD Brands
is currently trialling a worker voice
tool that provides 100% of workers
with a means to communicate with
the brands on an intermittent or
ongoing basis. Questions can be
tailored to address local challenges
unique to that geographical
location, cultural group or other
demographic. The tool provides
immediate insights and allows brands
to pinpoint areas where potential
exploitation may be occurring and
where further work is required.
Worker Voice Tools and
Grievance Mechanisms
CASE
STUDY
Giving workers a voice is an
essential part of any authentic
social impact program. It
is also a critical part of any
eort to meaningfully address
modern slavery. The challenge
is how to do so in a way that is
culturally appropriate, scalable,
relevant and eective.
An often overlooked component is
the mindset of the business relying
on such tools. Why do we want to
hear from workers in the first place?
If it is purely to meet our social
compliance obligations and tick
the necessary box, then we may
as well not bother. However, if our
desire to hear from workers in our
supply chain is an expression of our
brand identity, values and desire to
improve our impact and footprint,
then such tools are invaluable.
In partnership with our third party
provider ELEVATE, KMD Brands
began incorporating a worker
survey into every full social audit
to ensure that we gained both a
top-down and bottom-up view of
our suppliers. As an example of the
power of worker voice tools and
surveys, during FY22 we were able
to identify one of our suppliers who
performed very well on the traditional
audit scoring, but simultaneously
had a workplace where some of
the women reported experiencing
sexual harassment or bullying
through the worker survey tool.
For a worker to have confidence
in a communication tool, it should
ideally be something they already
use, require little or no training on,
and is a communication channel
they trust. KMD Brands therefore
uses existing social media channels
(such as WeChat in China) as one
of our grievance mechanisms.
Workers simply scan the QR
code with their phones and can
instantly communicate, in their own
language, with the mobile phone
sitting on the desk of the Social
Impact Manager in New Zealand.
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OVER
NZD $150k
in partnership support fees in FY22
OVER
NZD $100k
donated by our customers from sales
of paper shopping bags in FY22
11
Project K Programmes
nationally
02
Nga Ara Whetu
Programmes in the
Far North Region
15
Stars Programmes
nationally
Beyond Blue
Beyond Blue provides information and support
for anxiety, depression, and suicide prevention
in Australia. Kathmandu is the oŸicial partner of
#teambeyondblue challenge events, supporting
those who take on anything from individual
fitness challenges to large-scale running, cycling
or swimming events. Kathmandu’s financial
support funds Beyond Blue’s Support Service.
www.beyondblue.org.au
www.dinglefoundation.org.nz
NZD $1m
invested with our local
community partners
Including over 2,200 volunteer hours
3
.
3. Includes company financial donations, product donations,
partnership fees, employee donations, and volunteer hours.
Goals and
Performance
GOAL
Supported local community projects,
through donations, fundraising and paid
employee time, to create a positive impact
for the wellbeing of people and planet
55
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
COMMUNITY AT
KATHMANDU
Kathmandu works with youth
and mental health focussed
organisations that align with
our purpose to improve
the wellbeing of the world
through the outdoors.
We know that being outdoors
is transformative. Science has
shown that it changes our
brains for the better. When
we spend time out there our
stress goes down, our empathy
goes up and we feel happier.
And that’s why we’re proud to
partner with organisations who
help people experience all the
goodness nature has to oŸer.
KATHMANDU’S COMMUNITY PARTNERS INCLUDE:
Graeme Dingle
Graeme Dingle Foundation is a leader in positive
child and youth development throughout New
Zealand. Through our partnership with the Graeme
Dingle Foundation, we support a series of Wilderness
Adventures, Adventure Camps and Activity Days that
see hundreds of young people become empowered
by spending time in New Zealand's stunning
wilderness. During FY22 Kathmandu’s financial
support helped to fund the below programmes:
54

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Black Folks Camp Too
BFCT's mission is to increase diversity in the
outdoors by making it more accessible, familiar, and
fun for black folks to go camping. During FY22, Oboz
joined forces with BFCT to produce the O FIT Insole®
'Unity Blaze' with a portion of proceeds supporting
Black Folks Camp Too’s Digital Education Initiative.
www.blackfolkscamptoo.com
52 Hike Challenge
Together with outdoor brands Osprey and Outdoor
Research, Oboz launch the 52 Hike Challenge. This
is a group of women over 50 who commit to hiking
52 times a year. The group meets monthly to share
experiences, encouragement, and product feedback.
www.52hikechallenge.com
Trees For The Future
We plant a tree for every pair of Oboz sold since our
beginning in 2007. This equates to over 4 million trees
– and counting. Oboz Footwear specifically supports
the Tabora Forest Garden Project in Tanzania.
www.trees.org
COMMUNITY AT OBOZ
Oboz strives to partner with
individuals, organisations and
causes – referred to as our
Compass Partners, that are
closely tied to our purpose of
empowering the people of the
world to blaze their own trail.
Together with our Compass
Partners, we focus on educating
the broader community in two
key areas: land conservation
and equitable access. Types
of support include: grants,
sponsorships and/or product
givebacks, volunteer service
and brand advocacy.
OBOZ'S COMMUNITY PARTNERS INCLUDE:
150
women participating
OVER
NZD $25k
invested in FY222
OVER
NZD $95k
invested in FY22
SurfAid
SurfAid’s mission is to improve the lives of families
in isolated corners of the globe connected through
surfing. SurfAid has been selected for a two-year
partnership to support our Club Rip Curl loyalty
programme due to alignment with Rip Curl values.
www.surfaid.org
Thread Together
Major floods aŸected thousands of Australians in
New South Wales and Queensland and meant
some lost everything. Rip Curl partnered with
Thread Together, a charity organisation that
sources brand new clothes and distribute
them to those in need around the country.
www.threadtogether.org/about
Rip Curl Community Cup
Each year Rip Curl hosts and contributes largely
to a community golf day at the RACV in Torquay
where funds raised are donated to a local family
in need. This year funds raised were donated
to the Thompson family who suddenly lost
their husband and father of two young girls,
while on a morning bike ride in Jan Juc.
https://rc-community-cup.square.site/
COMMUNITY AT
RIP CURL
Community and the
Environment is embedded
into the Rip Curl company
policy, crew behaviour, and
daily operations. This means
giving back to communities in
which we operate as well as
protecting the environment
around those communities.
RIP CURL'S COMMUNITY PARTNERS INCLUDE:
NZD $11,230
invested in FY22
NZD $20,000RRP
in product donated in FY22
over NZD $55k
funds raised

Volunteerism for
All Employees
CASE
STUDY
This year, Oboz introduced a
new volunteering policy with a
goal of seeing every employee
volunteering for a minimum of
eight hours annually. Each staff
member receives 16 hours of
volunteer time off per year – this
includes eight hours volunteering
with the Oboz team and eight
hours of personal choice.
We created a 2+1 Challenge by
organising two company-wide
volunteer events encouraging
each employee to also volunteer
for a cause of their choice. In
total, Oboz team members
logged 235 volunteer hours in
and out of the office this year.
During one of the company-wide
volunteer events led by the Roots
Crew, staff planted 50 trees in
Bozeman with support from Gallatin
Watershed Council and City of
Bozeman Forestry Division.
“At Oboz, we don't just want people to
volunteer for the sake of volunteering,”
says Kaci Norberg, Human Resources
Specialist. “We encourage people to
not just give back in ways that align
with our company values but also
that align with their own. We have
company-wide volunteer events to
make larger impacts in the areas that
we care about as a company, but we
also offer time for everyone to go
out and volunteer in ways that allow
them to stay true to themselves.”
Planet Day Turns 21
Last year, Rip Curl celebrated
its 21st annual Planet Day on
the Surf Coast, working with
local environmental groups
near our Torquay head office
to clean up, protect and
revegetate beach areas.
Keeping our feet in the sand and our
heart in the surf keeps us focused
on our vision to be regarded as
the Ultimate Surfing Company.
“Planet Day shows how connected
it is to our company and our values,”
says CEO Brooke Farris. “It’s all about
acting locally and thinking globally
about how we can contribute to
the community we live in and the
environment that we live in.”
Each year, around 170 staff participate
in Planet Day. Over 21 years, this
equates to more than 3,500 days
of work or around 17,500 hours.
There were planet day events
cleaning beaches in California
and picking up rubbish on a
culturally significant mountain near
our Thailand wetsuit factory.
“It’s one of my favourite days
of the year,” says Adam Leslie,
Global Product Manager, Men’s
Surfwear. “It’s fantastic to be able
to give back to the community.”
“My favourite part is getting out
of the office and connecting with
crew that I don’t usually work
close to,” says Shasta O’Loughlin,
KMD Brands Head of ESG.
In our home town of Torquay, the
Rip Curl crew are responsible for
successfully reintroducing more than
100,000 indigenous plants – 80%
of those plants survive long term.
“The future of Planet Day is that it’s
absolutely here to stay,” says Brooke.
“We love it and we want to see more
people involved so we’re going to
expand it to ensure that all of our Rip
Curl regions, suppliers, customers
and athletes can be involved. I
really look forward to seeing it
bigger and better every year.”
CASE
STUDY
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Science-Based Climate Action
MATERIAL ISSUES:CLIMATE CHANGE ‹ BRAND POWER
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ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
an opportunity to elevate the
distinctiveness of each of our brands
and helps build rapport with our
customer base through product
design and sustainable innovation.
During FY22 we have expanded
our investment in solar, including
the installation of solar panels at
the OnSmooth wetsuit factory in
Thailand. We have continued rolling
out energy eŸicient LED lighting
upgrades across our store network.
We have seen an overall drop in our
Scope 1 and Scope 2 emissions. This
was due substantially to government
enforced closure of parts of our
Australasian store network reducing
energy requirements and limiting
travel required in company owned
vehicles. The reduction strategies
we are putting in place are important
foundational steps to support
reduction in a post-COVID climate.
CHALLENGES AND
OPPORTUNITIES AHEAD
When it comes to climate action,
the challenges ahead could not
be greater. We are committed to
reporting openly and transparently
on our journey to reduce our carbon
footprint and the challenges we
will face along the way. There is
considerable work ahead to collect
information about the primary
data sources for our scope 3
1. IPCC, 2021: Climate Change 2021: The
Physical Science Basis. Contribution of Working
Group I to the Sixth Assessment Report of the
Intergovernmental Panel on Climate Change
(2021) Masson-Delmotte, V., P. Zhai, A. Pirani, S.L.
Connors, C. Péan, S. Berger, N. Caud, Y. Chen,
L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell,
E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T.
Waterfield, O. Yelekçi, R. Yu, and B. Zhou (eds.)].
Cambridge University Press. In Press.Retrieved
from https://www.ipcc.ch/report/ar6/wg1/
emissions. We have an opportunity
to collaborate through shared
knowledge and experience with
other businesses as we collectively
work to address the challenges
in our industry. Our commitment
to climate action is important
to stakeholders throughout our
business - from employees to
shareholders and ultimately our
customers, who want responsibly
made products, created with a focus
on positive impact for the planet.
The increasing levels of ESG
regulation confirms that our strategy
to showcase our leadership in ESG
will set our brands up for future
success. Recently announced
regulations that will likely impact
our brands in the future include the
revised Waste Framework Directive
which obliges EU Member States to
separately collect textile waste from
2025. The New Zealand Financial
Sector (Climate-related Disclosures
and Other Matters) Amendment
Bill, which broadens non-financial
reporting by requiring and supporting
the making of climate-related
disclosures, will apply to the Group
from the FY23 reporting year. We are
reporting to the TCFD framework for
the first time this year to prepare for
the mandatory disclosures to come.
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
OUR OBSERVATIONS
Our love for the outdoors is what
all our brands - Kathmandu, Oboz
and Rip Curl - are built on. All our
brands are dedicated to supporting,
enhancing and encouraging activities
which get people into the outdoors,
whether its hiking on a trail, catching
a wave or simply enjoying the open
air. We seek to inspire our customers
to share in our connection with the
outdoors and to respect, protect
and live in recognition for the
interdependent relationship we have
with nature. Demonstrating that we
take responsibility for the climate
impact created by our businesses is
essential to protect the reputation
of each of our brands and to meet
the expectations our customers
have of us as outdoor brands.
KMD Brands is focused on
transitioning to a low carbon future
by reducing greenhouse gas
emissions in line with global goals.
Without global and rapid reduction in
greenhouse emissions in the coming
decades, there will be a dramatic
negative impact on our beloved
outdoors and on global economies.
1
OUR ACTIONS
During FY22 we have continued
our journey to track and reduce our
carbon footprint. We have conducted
energy audits across significant parts
of our oŸice, distribution centres and
store network. Through this process
we have identified opportunities,
and formed a roadmap, for emission
reduction through investment in
cost-eŸective onsite solar and
energy eŸiciency projects. While
the purchase of carbon oŸsets for
our unavoidable emissions remains
a component of our strategy,
we are focussed on investing in
reduction policies as the priority.
We have recently submitted
our proposed carbon reduction
targets to Science Based Targets
initiative (SBTi) and are awaiting
formal approval. Our commitment
to climate change initiatives is

6263KMD Brands Annual Integrated Report 2022
*Estimated based upon verified FY19 Kathmandu inventory, verified FY20 Rip Curl inventory,
and verified FY21 Oboz inventory.
**FY22 figures are audited, pre-certified numbers. Previous year's carbon emissions reported were
pre-certified estimates and are now updated with final certified numbers, aligned with our annual Toitū
carbonreduce and net carbonzero certifications. Scope 1 emissions are our direct emissions. Scope 2
emissions are our indirect purchased electricity emissions. Scope 3 are our indirect value chain emissions
including both upstream and downstream.
TOTAL SCOPE 1 EMISSIONS**
% Reduction
(from Baseline) 21%
Baseline*
630Tonnes CO
³
e
FY21
540Tonnes CO
³
e
FY22
498Tonnes CO
³
e
SOURCES OF SCOPE 3 STOCK TRANSPORT EMISSIONS**
68%25%7%
% Reduction
(from Baseline)
22%
TOTAL SCOPE 2 EMISSIONS**
11,904Tonnes CO
³
e
Baseline*
10,321Tonnes CO
³
e
FY21
9,246Tonnes CO
³
e
FY22
GOALS
Reduced absolute Scope 1 and 2 emissions by
a minimum of 47% by 2030, from a FY19 base
year (4.2% per annum emissions reduction)
Reduced absolute Scope 3 emissions by
a minimum of 28% by 2030 from a FY19
base year (2.5% reduction per annum)
This year we are now reporting
our carbon emissions as a Group.
Our Group inventory is audited
annually by Toitū Envirocare and
is aligned with the Greenhouse
Gas Protocol for Corporate
Accounting and Reporting.
Scope 1 and 2 emission reductions
this year are a result of store
closures due to COVID, reduced
travel required in company owned
vehicles and LED lighting upgrades
across our store network.
As a Group we track our Scope 3
indirect emissions including our
operational waste, corporate travel,
inbound freight, DTC transfers,
store-to-store transfers via all
freight modes, air, sea, and road.
Air freight and overseas travel
are two key areas of focus due
to the large emissions created
by the aviation industry. Product
life-cycle considerations and
supplier environmental impact
assessments will continue to
expand our data set to support
transition to a lower carbon future.
With the submission of our Science-
based Targets as a Group we are
working to improve primary data
sources of our Scope 3 emissions.
As we improve our data sources our
reported base year will update.
We anticipate that we may
see an increase in our total
emissions in FY23 as air travel
resumes and all stores return
to full operational capacity.
Goals and
Performance

Climate Risk Disclosures
PREPARED IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE TASKFORCE
ON CLIMATE±RELATED FINANCIAL DISCLOSURES ²TCFD³
The following disclosure is our first TCFD report and summarises how we align with the TCFD recommendations.
TCFD recommendations are structured around four areas: Governance, Risk Management, Strategy, Metrics and Targets.
We will expand on the depth of disclosures in subsequent reporting periods.
Disclose the organisation’s
governance around
climate-related risks and
opportunities
TCFD recommendations:
•Describe the Board’s
oversight of climate-related
risks and opportunities
•Describe Management’s
role in assessing and
managing climate-related
risks and opportunities
The Board is responsible for the
overall corporate governance and
oversight of risk for KMD Brands,
including the company’s response
to the risks and opportunities
presented by climate related issues.
The Board approves and adopts the
appropriate policies and procedures
to enable directors, management and
employees to fulfil their functions
eŸectively and responsibly. The
Board meets regularly, at least 8
times each year, and is updated
on the management and strategic
risks of climate related issues on a
periodic basis during meetings.
The Board is supported in this
function by the Audit and Risk
Committee, which meets five times
per year, and assists the Board in
discharging its responsibility for
strategic risk oversight. KMD Brands
has a Risk Management Policy
(available on our investor website at
kmdbrands.com) which is reviewed
and updated regularly. The Audit and
Risk Committee reviews risk reports
from management and ensures
risks are managed in accordance
with the Risk Management policy
and risk framework. The purpose
of the risk policy is to define the
risks relevant to KMD Brand’s
operations, and to ensure that
appropriate systems and methods
are designed and implemented to
minimise and control our risks.
KMD Brands’ Group Chief Executive
OŸicer & Managing Director, Michael
Daly, has oversight of climate-related
issues for the Group. The Chief
Legal & ESG oŸicer, in conjunction
with the Chief Financial OŸicer, are
responsible for overseeing KMD’s
risk management framework which
includes climate-related issues
and both oŸicers report directly to
the Group CEO. Brand CEOs are
ultimately responsible for driving
activities within the business units
comprising their brands. KMD Brands’
Executive team are responsible for
regular assessment and monitoring
of all risks, including climate-
related risks and opportunities. The
wider management team conduct
regular risk assessments using
the risk management framework
and implement appropriate risk
mitigation strategies and controls.
KMD Brands has undertaken a
Group-wide materiality assessment
and, informed by this assessment, has
now developed a KMD Brands ESG
strategy that covers the entire Group.
As part of implementing this Group-
wide ESG strategy, governance over
climate change-related issues is
centrally coordinated. Our Group
CEO has ultimate oversight over our
Group ESG strategy, with regular
reporting to the Board on strategic
performance. The Chief Legal
& ESG OŸicer is responsible for
implementation of the strategic plan
including climate reporting, science-
based target setting, supply chain
engagement, and our emissions
reduction strategy with support
from the KMD Brands ESG team.
STRATEGY
GOVERNANCE
Disclose the actual and
potential impact of
climate-related risks and
opportunities for the
organisation’s businesses,
strategy and financial
planning where such
information is material
TCFD recommendations:
•Describe the climate-related
risks and opportunities
identified over the short,
medium, and long-term
•Describe the actual and
potential impacts of climate-
related risks and opportunities
on the company’s businesses,
strategy and financial
planning
•Describe the resilience of the
organisation’s strategy, taking
into consideration diŸerent
climate-related scenarios,
including a 2°C or lower
scenario
Our Journey to
Science-Based Targets
CASE
STUDY
The Intergovernmental Panel
on Climate Change (IPCC)
special report shows that
even if global economies limit
warming to 1.5 degrees above
pre-industrial levels, 1 billion
people will be exposed to severe
heat waves and there will be a
100% increase in flood risk.
If we fail to achieve 1.5 degrees
warming but can limit temperature
increase by 2 degrees, those
numbers increase to 2.7 billion
people suŸering heat waves and
170% increase in flood risk.
2
There is a lot at stake if we don’t
act - and that’s why KMD Brands
has committed to do our bit to
transition to a low-carbon future
and reduce our emissions in line
with the Paris Climate Agreement
Goals. KMD Brands has submitted
targets to Science Based Targets
Initiative (SBTi) for our entire value
chain and are awaiting approval.
SBTi is a global partnership between
WWF, CDP, WRI and the UN which
aims to support the best practice
for emissions target setting.
For our Scope 1 and 2 emissions,
which are emissions that come
directly from our company’s owned
or controlled sources, as well as
our purchased electricity, we have
committed to targets that align with
limiting global warming to 1.5 degrees.
We have set a target to reduce
emission by at least 47% by
2030, from a 2019 base year.
For our Scope 3 emissions, which
includes all the other indirect
emissions in our supply chain, where
we have less control, we have set
targets that align with keeping global
warming well below 2 degrees. This
translates to a minimum reduction of
28% by 2030, from a 2019 base year.
HOW WE’LL GET THERE
Our baseline emissions show that
76.6% of Scope 1 and 2 emissions
come from electricity purchased
in Australia. Our reduction plan
involves improving our energy
eŸiciency, putting solar panels on
our buildings, and buying renewable
electricity. A core dependency on
our predictions is Australia’s grid
becoming more renewable.
3
We acknowledge that the majority of
our Scope 3 emissions are from the
production of our products and this is
where we will need to concentrate a
significant amount of our eŸorts. Our
Scope 3 reduction plan focuses on
supporting our suppliers to improve
their energy eŸiciency and renewable
energy procurement. A core
dependency on our predictions is our
suppliers’ electricity grid becoming
more renewable.
4
Our continuous
dedication to our own-brand
products being responsibly sourced
will also contribute towards reducing
our overall emissions footprint.
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS
2. Global Warming of 1.5 ºC — (ipcc.ch)
3. https://www.industry.gov.au/sites/default/files/2020-12/australias-emissions-projections-2020.pdf
4. Roadmap to Net Zero: Delivering Science-Based Targets in the Apparel Sector | World Resources Institute (wri.org)

RISK DESCRIPTIONIMPACT OF RISK / OPPORTUNITYPOTENTIAL FINANCIAL IMPACT
TRANSITION
Carbon pricingThe cost to oŸ-set carbon emission is increasing with greater
demand for carbon credits as the number of businesses
committing to net zero targets grows. While the purchase
of carbon oŸsets for our unavoidable emissions remains
a component of our emission strategy, we are focussed
on investing in reduction policies as the priority.
Impact on cost to meet/
maintain carbon zero/carbon
reduce certifications
Higher supply chain costs as
businesses increase prices to
reflect a higher carbon price
PHYSICAL
Rising
temperatures
Increases in heatwaves may lead to increased energy
consumption through operation of air conditioning across
our premises during peak electricity demand periods. This
could increase KMD’s operational costs. Higher temperatures
could reduce seasonal need for insulation products.
Increased capital and
operational expenditure
Impact on market demand
for insulation products
FloodingIncrease in flood risk and severity, increasing risk of damage
to owned and operated oŸice, store and warehouse network.
Damage to capital assets,
investment needed in natural
hazard defences or asset relocation
Sea level riseSea level rise impacting access to shipping lines.
Impact to coastal areas for access for water-based
recreation activities such as swimming and surfing.
Increased operational costs or
delayed delivery of goods
Impact on market demand
for water related products
Resource scarcityDeclining access to raw materials needed to manufacture
goods at aŸordable prices due to scarcity of resources.
Higher cost to produce goods
OPPORTUNITY
Investor and
customer
expectations
Opportunity to meet growing investor and customer
expectations to demonstrate leadership in climate
action, driving long term growth for KMD Brands
and an improvement in market value.
Increase share price performance
Growth in customer base
FinancingBetter access to debt capital through financing
linked to achievement of sustainability goals with
reduced interest rate for meeting targets.
Lower cost of debt
Technology
- Emerging
business models
Climate change is acting as a catalyst for disruption and is
driving development of new technologies providing opportunities
for improving the energy eŸiciency of our direct operations,
improving the resilience of our supply chain and maximising
customer engagement through responsible sourcing of
materials and sustainable innovation in our product range.
Savings in operational costs
New product
development
Development of new products and business models in
response to changing climate conditions. Opportunity to
gain competitive advantage over other businesses.
Increase in profitability and value
of the KMD Brands Group
KMD Brands has not yet modelled
how climate change will impact the
organisation across diŸerent climate-
related scenarios and over diŸerent
time horizons (short-medium-long
term). Therefore, we cannot formally
evaluate whether our strategy is
aligned to a 2°C scenario until the
conclusion of our scenario analysis
and until we receive formal feedback
from SBTi on the emission reduction
targets that we have submitted.
We intend to collaborate with other
retail industry participants, with
guidance from the New Zealand
External Reporting Board (XRB),
on any relevant sector-specific
scenarios that are developed with
reference to the NZ Climate-related
Financial Disclosures framework.
We have identified a number
of climate-related risks and
opportunities through our existing
risk management processes, as
previously reported in our CDP
disclosures. We have assessed
these risks to have the potential
RISK DESCRIPTIONIMPACT OF RISK / OPPORTUNITYPOTENTIAL FINANCIAL IMPACT
TRANSITION
ReputationKMD’s sustainability values include a commitment
to minimise our environmental footprint. Consumers
and investors expect KMD to monitor and address
environmental performance, including GHG emissions.
Failure to uphold this reputation for responsible environmental
management may damage the Company’s reputation
with consumers and investors. This risk is especially
relevant to our business given our brands' connection to
the natural environment as a supplier of outdoor apparel
and equipment, and our customers’ generally high level
of awareness of environmental sustainability issues.
Change in sales due to loss
of customer preference
Policy and
Legal - Emerging
regulation
The recent change of federal government in Australia is likely to
lead to significant change to climate policy in Australia. However,
significant uncertainty remains with draft legislation recently
presented to parliament yet to be debated and finalised.
Equally, in New Zealand, there is considerable uncertainty
regarding the suite of policy mechanisms that will be
developed to enable the objectives of the ‘Climate
Change Response (Zero Carbon) Amendment Bill’.
Although we do not anticipate any direct liability under relevant
policy mechanisms the extent to which our electricity suppliers
will be impacted, and the potential for cost-pass through is
an area of uncertainty which creates risk for our business.
The potential for the introduction of a carbon border
tariŸ for the import of goods into European markets
could also impact the margin on our goods.
Increased indirect (operating)
costs and impact on margin
to materially impact our business,
including on our operations, strategy,
and financial planning if they are
not managed appropriately. The
climate related opportunities,
when taken, have the potential to
improve our financial performance,
and also reduce our impact on
the planet. We will continue to
identify risks and opportunities as
we develop our climate reporting
in preparation for reporting
requirements under the NZ Climate-
related Disclosures standards.
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Disclose the metrics and
targets used to assess
climate-related risks and
opportunities where such
information is material
TCFD recommendations:
•Disclose the metrics used by
the organisation to assess
climate-related risks and
opportunities in-line with its
strategy and risk management
process
•Disclose Scope 1, Scope 2
and, if appropriate, Scope
3 greenhouse gas (GHG)
emissions, and the related
risks
•Describe the targets used
by the organisation to
manage climate-related
risks and opportunities and
performance against targets
METRICS AND TARGETS
As we carry out climate scenario
analysis we will gain a deeper
understanding of the risks and
opportunities for our business.
This understanding will drive
further consideration of the metrics
we will use to both measure
and monitor climate-related
risks across our businesses.
We have recently submitted
our proposed carbon reduction
targets to Science Based
Targets initiative (SBTi) and are
awaiting formal approval. Our
climate emissions targets are:
Reduced absolute
Scope 1 and 2
emissions by a
minimum of 47% by
2030, from a FY19 base
year (4.2% per annum
emissions reduction)
Reduced absolute
Scope 3 emissions by a
minimum of 28% by
2030 from a FY19 base
year (2.5% reduction
per annum)
Our progress on these targets will be
closely monitored and we will report
on our successes and challenges
along our carbon reduction journey.
Our Group emissions inventory is
audited annually by Toitū Envirocare
and is aligned with the Greenhouse
Gas Protocol for Corporate
Accounting and Reporting.
Our FY22 gross direct Scope 1 &
2, and gross direct (mandatory)
Scope 3, emissions are reported
on pages 154 to 155.
Disclose how the organisation
identifies, assesses and
manages climate-related risks
TCFD recommendations:
•Describe the organisation’s
processes for identifying and
assessing climate-related
risks
•Describe the organisation’s
processes for managing
climate-related risks
•Describe how processes for
identifying, assessing and
managing climate-related
risks are integrated into
overall risk management
RISK MANAGEMENT
Risk management is carried out
based on policies approved by the
Board of Directors. The Group risk
policy provides written principles
for overall risk management, as well
as policies covering specific areas,
such as climate-related risks.
Specifically, KMD Brands has
risk documentation and an
assessment process in place for
the identification, classification,
review and control of business
risks and opportunities, including
climate change-related physical and
transition risks and opportunities.
At the company level, KMD Brands
maintains a Group Risk register
covering all three brands. KMD
Brands assesses the potential impact
of each identified business risk and
the likelihood of occurrence, in line
with accepted risk tolerances. This
process involves an assessment
of the inherent risk, considers the
controls currently in place, the
residual risk as a result of those
controls, and also establishes
targets to reduce the severity of
risks further to a lower level. Risks
are classified by strategic themes
in order to assign responsibility for
key actions to specific functional
managers of the business.
Risk management encompasses all
areas of the Company's activities.
Once a business risk is identified,
the risk management processes
and systems implemented by the
Company are aimed at providing
the necessary framework to enable
the business risk to be managed.
In the application of the controls
processes, opportunities for the
business are often also identified
through pro-active risk management.
Climate change aŸects various
aspects of our business and as such
identification of climate change-
related risks and opportunities is
fully integrated into our Group risk
management approach. Kathmandu,
Rip Curl and Oboz maintain a number
of risk themes within the Group risk
register relating to product safety,
service quality, supply chain and
technology that directly influence
our approach to supply chain
operation, retail store management
and product development, all of
which impact the climate-change
related impacts to our businesses.
The physical and transitional risks
of climate change, as well as the
identification of opportunities, are
assessed at an asset level including
our physical resources and products,
which informs not only our asset
management strategy, but also
our broader business strategy.
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MATERIAL ISSUES:CLIMATE CHANGE ‹ BRAND POWER
business models across our business.
One of the models implemented
is targeted at reducing packaging
waste in online deliveries. Online
delivery satchels are a prominent
form of secondary packaging
used by online retailers.
During FY22, Kathmandu shifted its
online delivery satchels from 100%
virgin plastic to 100% recycled plastic,
which can also be recycled via soft-
plastic recycling schemes. Rip Curl
has also successfully completed trials
of testing 100% recycled low-density
polyethylene (LDPE) polybags.
CHALLENGES AND
OPPORTUNITIES AHEAD
Our focus on responsibly sourced
materials, underpinned by our
commitment to designing products
for purpose and driven by innovation,
provides our brands with a significant
opportunity for diŸerentiation. We
are proud of the market leading
innovations our brands have
produced and we are committed to
the continual search for ways to have
a positive impact on the planet.
A key challenge when it comes to
our waste reduction goals is gaining
primary data from our store waste
providers as well as tracking our own
primary and secondary packaging
accurately. Moving forward we will
continue to consolidate our waste
providers and perform waste audits
across our store network to get a
clearer understanding of how much
waste we are diverting from landfill.
We will also focus on improving our
packaging monitoring systems to
gain greater transparency over the
impact of our product packaging.
Our focus on embedding circular
thinking across our businesses and
investing in innovation for circular
business systems throughout
our value chain provides us
with a significant opportunity to
demonstrate leadership amongst our
peers. FY23 will see the expansion
of the Rip Curl wetsuit takeback
programme with TerraCycle, and
the pilot of an apparel renewal
programme for Kathmandu.
Circular Business Models
OUR OBSERVATIONS
Part of our strength is our
commitment to reduce the negative
impact of our business and our
products on the natural world.
We draw on this strength when
developing innovative ways to reduce
our environmental footprint and
meet our customers’ expectations.
Increasingly unusual weather
patterns continue to impact demand.
This keeps climate action and circular
thinking in focus for both the Group
and individual brands, to enable us
to remain relevant and competitive.
We are focused on embedding
circular thinking across our
businesses and we are committed
to fostering and investing in
innovation for circular business
systems throughout our value
chain. We look for opportunities
wherever possible to eliminate the
linear take-make-waste approach to
business and keep resources in use.
OUR ACTIONS
Each of our Brands is on a journey
to increase the responsible material
content in our products. Our teams
have been sharing knowledge,
expertise and innovations to
meet the expectations of our
customers, as outdoor brands,
to address the impact of our
business on climate change.
Through our materiality assessment
process, we have identified key
material issues that matter to our
stakeholders. As a result, we have
focussed on embedding circular
"Each of our brands have
unique product category
challenges and opportunities
for increasing responsible
material content and,
ultimately, finding end of life
solutions for our products."
Frances Blundell, KMD Brands
Chief Legal & ESG OŸicer
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST STRATEGY BUILDING GLOBAL BRANDS

GOAL
Dedicated to our own-brand products
being responsibly sourced
To us, ‘responsibly sourced’ means that
our products are made, to a significant
degree, with environmentally preferred,
low climate impact materials, being
materials that are regenerative, recycled
or recyclable, bio-based, biodegradable,
responsibly farmed or grown. This goal
will be progressed at a diŒerent pace,
and in diŒerent ways, for each of our
brands. As a Group of brands, we are
focussed on continual progression
towards responsibly sourced materials
for all our own-brand products.
Each of our brands are working towards
their own specific goals relating to
increasing responsibly sourced material
content in own-brand products. We will
look to align the metrics we report on in
this area in future reporting periods, with
all brands reporting through the Textile
Exchange's Material Change Index (MCI)
in future years. The MCI is the largest
peer-to-peer comparison initiative
in the textile industry. This platform
allows us to track our progress towards
more sustainable material sourcing.
Goals and
Performance
37%
of our produced quantities are using
recycled synthetic materials.
(19% in FY21).
6,170,532
Litres of water cleaned and restored to the
environment through Bloom™ material partnership
on Footwear division.
4,506,511
Litres in FY21.
Our priority is for our range to use 50% responsibly
sourced materials by 2025. These materials
include Bloom, Eucaprene, Lenzing® EcoVero™,
Repreve™, Topgreen™, Econyl™, Sustainable
Cotton. All trims are now made with FSC paper,
recycled polyester or organic cotton.
RECYCLED SYNTHETIC MATERIALS
WATER RESTORATION
GOALS
100%
responsibly sourced cotton by 2026.
100%
apparel and accessories in preferred fibre
materials by 2030.
75%
of our wetsuit range using responsibly sourced
materials by 2030.
SUSTAINABLE COTTON
40%
of our produced quantities are using
responsibly sourced cotton.
(18% in FY21).
We source a mix of organic, recycled cotton and
cotton sourced through the Better Cotton Initiative
(BCI) to make up our responsibly sourced cotton mix.
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