FY23 Annual Results Announcement

Results announcement
KMD BRANDS LIMITED W kmdbrands.com

Results for announcement to the market
Name of issuer KMD Brands Limited
Reporting Period 12 months to 31 July 2023
Previous Reporting Period 12 months to 31 July 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,102,994 12.6%
Total Revenue $1,102,994 12.6%
Net profit/(loss) from continuing
operations
$36,614 -0.6%
Total net profit/(loss) $36,614 -0.6%
Interim Dividend
Amount per Quoted Equity
Security
$0.03000000
Imputed amount per Quoted
Equity Security
Nil
Record Date 05 October 2023
Dividend Payment Date 20 October 2023
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.17 $0.17
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
The year end results are based on accounts which have been subject
to audit. Refer to accompanying audited financial statements and
media release for further information.
Authority for this announcement
Name of person

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

Wednesday, 20 September 2023

Audited financial statements accompany this announcement.

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KMD BRANDS LIMITED W kmdbrands.com


20 September 2023
(All amounts in NZ$ unless otherwise stated)


KMD Brands delivers record $1.1 billion sales in FY23


KMD Brands Limited (ASX/NZX: KMD, “KMD” or the “Group”) is pleased to announce its
results for the twelve months ended 31 July 2023 (“FY23”).


FY23 key highlights (vs FY22):
• Group sales record, up 12.6% to $1.1 billion
o All brands grew sales, with Rip Curl and Oboz achieving record sales
• Gross margin improvement 20 basis points to 59.1%
• Underlying EBITDA
1
of $105.9 million, up 15.1% YOY despite softening consumer
sentiment in the fourth quarter
• Statutory NPAT of $36.6 million; Underlying NPAT
1
up 8.6% YOY to $43.3 million
• Strong balance sheet position
• Final dividend of 3 cents per share (not franked and not imputed); total FY23 dividend of
6 cents per share


Group CEO & Managing Director Michael Daly said:

“KMD Brands has achieved record sales of over $1.1 billion dollars in our first year of
uninterrupted trade post-pandemic, a significant milestone for the Group. Strong sales
growth was delivered across all key geographies, with Rip Curl and Oboz achieving record
sales. Kathmandu sales grew strongly over the first three quarters of the year. The fourth
quarter for Kathmandu was more challenging with increased cost-of-living pressures
softening consumer sentiment, and the warmest winter on record in Australia, which cycled
the best-ever winter trade season last year.”

“FY23 Group results were underpinned by strong omni-channel sales growth from all brands.
Customers returned to shopping in stores, with retail store sales increasing +17.5%. This had
an impact on online sales, a trend noted across the industry as customers returned to pre-
pandemic shopping behaviours. Online sales remain significantly above pre-pandemic levels.
Despite a challenging wholesale market, Group wholesale sales grew by +11%.”

“Our balance sheet is healthy with low net debt and improving inventory levels. We are well
positioned as we begin FY24.”

“The Group achieved its goal of global B Corp certification, becoming one of just 45 publicly
traded companies in the world to do so, further delivering on our goal to Lead in ESG.”







1
Excluding the impact of IFRS 16, restructuring, and the notional amortisation of Rip Curl and Oboz customer relationships

KMD BRANDS LIMITED W kmdbrands.com


Group financial performance

Statutory Underlying
2

NZ$ million
3
FY23 FY23 FY22 Var %
Sales 1,103.0 1,103.0 979.8 12.6%
Gross Profit 651.9 651.9 576.7 13.0%
Gross margin 59.1% 59.1% 58.9%
Operating Expenses (451.9) (546.1) (484.7) 12.7%
EBITDA 200.1 105.9 92.0 15.1%
EBIT 76.4 74.2 62.3 19.2%
NPAT 36.6 43.3 39.8 8.6%

Gross margin remained resilient, increasing +20 bps (0.2% of sales) to 59.1%. Improved
channel mix, wholesale pricing and international freight costs offset currency headwinds.

Operating expenses
2
were maintained year-on-year at 49.5% of sales, despite softened
sales performance in the fourth quarter.


Rip Curl: sales growth +8.3%

Rip Curl Underlying
2

NZ$ million FY23 FY22 Var%
Sales 581.5 536.8 8.3%
EBITDA 55.6 59.1 (6.0%)
EBIT 44.0 48.5 (9.2%)

Rip Curl achieved a record sales result, with total sales up +8.3% to $581.5 million. The
results were underpinned by strong direct-to-consumer results particularly in Australasia
following lockdowns last year, plus the return of international travel to Hawaii and Thailand.

Consumers took advantage of the brand’s strong omni-channel offering - an attractive and
premium brand experience in strategically placed stores. Online sales normalised at $34.9
million, significantly above pre-pandemic levels, as customers returned to shopping in stores.
Online sales represented 10.6% of direct-to-consumer sales.

The recently launched Club Rip Curl customer loyalty platform has over 220,000 members
to-date, driving more than $30 million in member-based sales – a fantastic achievement
given it launched just this year.

Wholesale sales showed resilience despite softening wetsuit demand from record highs.

Gross margin increased +60 bps (0.6% of sales), reflecting channel mix, improved wholesale
pricing, and the easing of elevated international freight costs.




2
Excluding the impact of IFRS 16, restructuring, and the notional amortisation of Rip Curl and Oboz customer relationships
3
FY23 NZD/AUD conversion rate 0.917 (FY22: 0.935), FY23 NZD/USD conversion rate 0.617 (FY22 0.674)

KMD BRANDS LIMITED W kmdbrands.com


Kathmandu: sales growth +10.6%

Kathmandu Underlying
2

NZ$ million FY23 FY22 Var %
Sales 422.2 381.6 10.6%
EBITDA 52.5 36.4 44.4%
EBIT 33.3 18.0 85.4%

Kathmandu total sales increased +10.6% to $422.2 million in FY23, with strong growth in the
first three quarters as customers returned to shopping in stores. Cost of living pressures
softened consumer sentiment in the fourth quarter, which impacted the key winter trade
season. Kathmandu faced the warmest winter on record in Australia and cycled its best-ever
winter season performance last year. In FY23, Australia sales grew +7.0%, and New Zealand
+13.1%.

Online sales normalised at $58.8 million, comfortably above pre-pandemic levels. Online
sales represented 14.0% of direct-to-consumer sales.

Gross margin increased +100 bps (1.0% of sales) with the deliberate strategy to continue to
moderate the historic “high-low” pricing model.

The sales result was supported by a strong loyalty base - a strategic focus of the brand with
a relaunch of the Kathmandu loyalty program in early FY24.

Kathmandu significantly reduced its inventory levels, and is now well positioned, with
inventory c. $37 million below July 22. The brand continues to cycle through its second
phase of recovery, with travel presenting an opportunity for growth as it steadies and returns
to pre-pandemic frequency, especially for customers traveling overseas.

The international soft launch of the brand delivered initial sales of $2.6 million including first
deliveries to select new wholesale customers in Europe and Canada. With the brand only
just starting to diversify and leverage wholesale as a channel, the new Kathmandu CEO will
be well placed to capitalise on this in the coming years, given her depth of global experience
in this space.


Oboz: sales growth +61.8%

Oboz Underlying
2

NZ$ million FY23 FY22 Var %
Sales 99.3 61.3 61.8%
EBITDA 7.9 3.3 137.0%
EBIT 7.1 2.7 166.0%

Oboz sales recovered strongly, increasing +61.8% to a record of almost $100 million. The
wholesale channel recovered strongly following last year’s significant supply constraints.

The brand also benefited from a commitment to diversified sales channels, delivering strong
online sales growth, increasing the mix of direct-to-consumer sales with high gross margins.

KMD BRANDS LIMITED W kmdbrands.com


Gross margin increased +270 bps (+2.7% of sales) with improved channel mix, adjusted
wholesale pricing, new product introductions, and the easing of elevated international freight
costs.

Oboz continued its investment to optimise the brand for growth and accelerate international
expansion.

Brand momentum remains strong, with ‘Fast Trail’ category expansion success and online
performance continuing to indicate a significant growth opportunity.


Strong balance sheet

At 31 July 2023, the Group had a net debt position of $55.7 million with funding headroom of
over $200 million.

Net working capital as a percentage of sales improved to be less than 20%, with significant
reduction in Kathmandu inventory. Rip Curl and Oboz continue to focus on reducing working
capital, as we transition away from inventory builds in wetsuits and footwear.

Positive operating cash flow for FY23 reflects the first year of uninterrupted trade post-
pandemic.

The Group’s strong balance sheet led Directors to declare a final dividend of 3.0 cents per
share (not franked and not imputed). The record date for this dividend is 5 October 2023, and
the payment date is 20 October 2023.


Leading in ESG

Commenting on the Group’s sustainability initiatives, Mr Daly said: “Today, the Group
released its FY23 Annual Integrated Report, our second integrated report and a continuation
of our efforts to consider financial and ESG performance as intertwined for long-term
growth.”

“Leading in ESG is a core component of our strategy, and I'm pleased to say we achieved a
lot this year. A highlight for me, and the Group at large, was certifying as a B Corp. All of the
Group, brands and employees the world over, united to make this happen. It was a very
proud moment.”

In FY23, KMD Brands had several ESG highlights, including:
• B Corporation (B Corp): we proudly came together as one Group across continents
to certify as a B Corp. Rip Curl and Oboz certified for the first time, while Kathmandu
recertified.
• Sustainability Linked Loan (SLL): balancing profit with our impact on the planet, we
successfully refinanced and expanded the application of our Sustainability Linked
Loan (SLL), including our first Sustainability Linked Guarantee. Unlike traditional
loans where the interest rate is based on financial metrics, a SLL is connected to our
achievement of specific sustainability objectives.
• The Science Based Targets initiative (SBTi): our climate targets were validated by
the Science Based Targets initiative, committing us formally to science-based climate
action and transitioning to a low-carbon future.

KMD BRANDS LIMITED W kmdbrands.com


• Modern Slavery Statement: following in the footsteps of previous brand statements,
we released our first Statement as a Group in early 2023. In conjunction with our
2023 results, we release our second Modern Slavery Statement as a Group.
• Industry recognition: we were recognised at the Australasian Reporting Awards for
our 2022 Annual Integrated Report and received multiple awards and nominations for
excellence in integrated reporting. We were also the winner of the Deloitte Top 200
The Aotearoa Circle Sustainable Business Leadership Award, which recognises
businesses working towards the creation of long-term environmental, social and
economic value.

Mr Daly continued, “In addition to what we achieved at a Group level; our iconic brands also
delivered true leadership in this space. Rip Curl launched its first Reconciliation Action Plan
(RAP) in partnership with Reconciliation Australia; Oboz’s long running ‘One More Tree’
initiative to plant trees on behalf of customers reached a milestone of over 5 million trees
planted since it began in 2007; and Kathmandu launched a pilot circularity project ‘Kathman-
REDU’, supported by a grant from the Victorian Government, which aims to commercialise a
complex non-linear new business model, the first of its kind in ANZ.”


Focused strategy underpins outlook

Group sales for August 2023 were -6.4% below last year. The trend in Kathmandu sales
continued from the fourth quarter of FY23 into August, but consistent with pre-pandemic
sales levels at this time of year. Rip Curl and Oboz have seen good momentum in direct-to-
consumer sales.

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

“The long-term fundamentals of our diversified group of outdoor brands remain intact.
Despite the challenging consumer sentiment, we expect tailwinds with the continued return to
travel, positive impact from the launch of innovative products and the outdoor lifestyle trend
post-pandemic.”

“Our strategic growth pillars remain unchanged, and with new executive appointments in
place (Kathmandu CEO, Chief Information Officer, Chief Digital Officer) we expect to
accelerate our strategy execution.”

“We are extremely motivated by the opportunities that lie ahead for our strong and innovative
team. In a relatively short time, we’ve evolved from a single brand ANZ retailer to a global
house of brands, diversified by channels, products, and geographies. We’ve achieved a
number of significant milestones in FY23, in our first year of uninterrupted trade post-
pandemic.”

KMD BRANDS LIMITED W kmdbrands.com


Investor briefing being held today @ 8:30am AEST / 10:30am NZST

Michael Daly (Group CEO & Managing Director) and Chris Kinraid (Group CFO) will be
holding a briefing session for investors and analysts at 8:30am AEST / 10:30am NZST today
(Wednesday 20 September). To pre-register and avoid a queue when calling, please follow
this link:https://event.webcasts.com/starthere.jsp?ei=1629002&tp_key=75a773ce89

If you are unable to pre-register, at the time of the call please dial one of the numbers below
and provide the Participant Code 827672 to the operator.
Australia Toll Free: 1 800 590 693
Australia Local: +61 (0) 2 7250 5438
New Zealand Toll Free: 0800 423 972
New Zealand Local: +64 (0)9 9133 624
United States Local: +1 323-794-2095
United Kingdom Local: +44 (0) 330 165 3646
France Local: +33 (0) 1 76 77 22 73


The webcast will be available on the KMD Brands investor website following the call.


This announcement has been authorised for release to NZX / ASX by the Board of Directors
of KMD Brands Limited.

- ENDS -

For further information, whether an investor or media enquiry, please contact:
enquiries@kmdbrands.com

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Annual Integrated Report
2023

CONTENTS
2 OUR JOURNEY
2 Reporting approach
3 Our purpose and vision
4 Our brands
6 Highlights and lowlights for FY23
8 Our world
10 LEADERSHIP & GOVERNANCE
10 Report from the Chair
12 Group CEO report
14 Governance at KMD Brands
16 Our board
17 Our management team
18 WHAT MATTERS MOST
18 Materiality approach
20 Our material issues
22 STRATEGY
22 How we create value
24 Our strategic pillars
26 BUILDING GLOBAL BRANDS
39 ELEVATING DIGITAL
48 OPERATIONAL EXCELLENCE
58 LEAD IN ESG
60 Communities
84 Climate
96 Circularity
118 FINANCING OUR IMPACT
119 Group CFO report
122 Financial statements
168 Auditors report
172 ADDITIONAL DISCLOSURES
172 Corporate Governance Statement
184 Statutory information
189 Directory
190 GRI index
198 SASB index
202 Our partners
KMD Brands acknowledges Tangata Whenua, the
Indigenous Nations, First Peoples, and Custodians of the
lands and waterways on which our brand head offices
reside in New Zealand, Australia and the United States.
1

OUR JOURNEY
Reporting approach
ABOUT THIS REPORT
This integrated report is a review of
our financial, economic, social and
environmental performance for the
year ending 31 July 2023. This is our
second year of integrated reporting.
We have prepared this report using
the International <IR> Framework,
which aims to communicate the
full range of factors that affect
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. Financial
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 is reported with reference
to the Global Reporting Initiative
(GRI) Universal Standards.
This year, we have built on our climate
disclosures, referring to the structure
of the Aotearoa New Zealand
Climate Standards (NZ CS) as we
build towards our first disclosure
under the NZ CS for FY24. We will
continue to improve and increase our
reporting of our climate-related risks
and opportunities and how they are
reflected in our business strategy
as we prepare for the reporting
requirements under the NZ CS.
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. Apart from
our carbon emissions data, external
assurance on non-financial data or
information has not been obtained.
This report constitutes KMD Brands'
2023 Annual Report to shareholders
and covers the requirements of
the NZX Corporate Governance
Code (version 1 April 2023).
Our purpose and vision
OUR BUSINESS
KMD Brands is a global outdoor
lifestyle and sports company and
certified B Corporation. The Group
consists of three iconic brands:
Kathmandu, Oboz and Rip Curl.
Kathmandu was founded in 1987
in New Zealand to equip people
for travel and adventure. Outdoor
footwear brand Oboz joined the
group in 2018 and is based in
Bozeman, Montana USA, the gateway
to Yellowstone National Park. Rip
Curl, acquired in 2019, is a leading
global surf brand born in Bells
Beach, Victoria, 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.
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.
GRI 2-1
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 responsible
practices across all three of our
brands, we protect the experience
and exhilaration offered by the
outdoors that means so much
to us and our customers.
KMD Brands Annual Integrated Report 202323
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

Our brands
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 effect on
us all. Getting outside makes us
more happy, open, free and fun.
Kathmandu’s vision is to be the
world’s most loved outdoor brand.
Born in the legendary Greater
Yellowstone Ecosystem right outside
our front door, the mountains just
outside Bozeman beckon us. It’s
in this 10-million-acre laboratory
where we test our designs and
find inspiration for our ideas. It’s
where we just soak it all in. It
even inspired our name “Oboz”
(Outside + Bozeman = Oboz).
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 within surf culture.
‘The Search’ is the driving force that
led to the creation of Rip Curl and
it lives in the spirit of everything we
do. Our vision is to be the ultimate
surfing company in all that we do.
5KMD Brands Annual Integrated Report 20234
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS
5

Highlights and Lowlights for FY22
w
$1,103m
Group sales
59.1%
Gross margin
$105.9m
Underlying EBITDA
1

$43.3m
Underlying NPAT
1

$55.7m
Net debt balance
Softening consumer
sentiment in Q4
Elevated levels of inventory
Highlights and lowlights for FY23
HIGHSLOWS
FINANCIAL
$42.7m
FY23 dividends declared
to shareholders
FY23 vs FY22
12.6%
increase
15.1%
increase
8.6%
increase
1. Statutory results include the impact of IFRS
16 leases. For comparability, the impacts of
IFRS 16, restructuring, and the notional
amortisation of Rip Curl and Oboz customer
relationships are excluded from Underlying
results. Refer to Appendix 1 of the FY23
Results Presentation for a reconciliation of
Statutory to Underlying results.
Launch of French, German and Canadian websites
Global transactional banking consolidation
Launch of high-growth fast trail category
International launches in Europe and Canada
Release of the innovative FlashBomb Fusion wetsuit
OPERATIONAL EXCELLENCE
ELEVATING DIGITAL
HIGHS
BUILDING GLOBAL BRANDS
Rising cost of living impacts on
consumer spending
North American and European
outdoor, footwear, and surf
industries all impacted by
industry over-stocking
LOWS
Impact on working capital from
elevated levels of inventory
Increase in customer
aggression in store towards
our retail employees
Online penetration normalised
following pandemic highs to
13.2% of direct-to-consumer sales
Significant resource invested in
mitigating the impact and risk of
scam websites for Kathmandu
and Oboz
Launch of Club Rip Curl in Australasia
Oboz direct-to-consumer website sales increased
>350% year-on-year
58.9%
Improved from
of sales in FY22
21.1%
Improved from
of sales in FY22
basis points
(0.2% of sales)
20
increase
76
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS
of sales
Gross margin
59.1%
Working capital
management
19.9%
of sales
LEAD IN ESG
Science-based targets approved by SBTi
2nd anniversary of Sustainability Linked Loan – all targets met
KMD Brands wins Deloitte New Zealand Top 200 Sustainable
Business Leadership award
Increase in Scope 1 and 2
emissions year-on-year due to
return of travel and full store
network operation
Complexities of scaling
circularity programs within
a linear business model
Group B Corp Certification
Winner, Best First Time Entry Australasian Reporting Awards

* Sourced from Gallup Q12 Engagement survey conducted during FY23 and is based on responses received from respondents
NATIONALITIES OF OUR TEAM *
American, Argentine, Australian, Austrian, Bangladeshi, Brazilian,
British, Canadian, Chilean, Chinese, Colombian, Croatian, Cuban, Dutch,
Ecuadorian, English, Filipino, Fijian, French, German, Greek, Honduran,
Indian, Indonesian, Iranian, Iraqi, Irish, Italian, Japanese, Korean,
Lebanese, Malaysian, Maltese, Mexican, Nepalese, New Zealander,
Pakistani, Peruvian, Polish, Portuguese, Russian, Salvadorian, Scottish,
South African, Spanish, Sri Lankan, Swedish, Thai, Tongan, Turkish,
Vietnamese, Welsh, and Zimbabwean.
Our world
NORTH AMERICATOTA L
Owned stores31
Licensed stores20
Wholesale doors+4,200
Materials sourcingUSA , Mexico
Factories1
SOUTH AMERICATOTA L
Owned stores5
Licensed stores96
Wholesale doors+800
Factories13
Materials sourcingBrazil
FRANCE
BRAZIL
USA
CANADA
Bozeman
Vancouver
San Clemente
Global Office Locations
Sao Paulo
Hossegor
AUSTRALASIATOTA L
Owned stores267
Licensed stores23
Wholesale doors+1,000
Materials sourcingAustralia, New Zealand
Factories6
ASIATOTA L
Licensed and JV stores75
Wholesale doors+600
Materials sourcing
Vietnam, China,
Thailand, Taiwan, Japan,
Indonesia, South Korea,
Bangladesh, India
Factories162
EUROPETOTA L
Owned stores24
Licensed stores14
Wholesale doors+2,000
Materials sourcingItaly, France
Factories6
AFRICA &
MIDDLE EAST
TOTA L
Licensed stores35
Factories1
NEW ZEALAND
AUSTRALIA
INDONESIA
THAILAND
JAPAN
Chiang Mai
Fujisawa
Bangkok
Bali
Torquay
Christchurch
Melbourne
GRI 2-1
KMD Brands Annual Integrated Report 202389
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

LEADERSHIP & GOVERNANCE
Report from the Chair
David Kirk
Chairman
I am pleased to present the
Financial Year ‘23 Annual
Integrated Report for KMD
Brands. FY23 was a year of
consolidation and setting of solid
foundations that will position the
Group and brands for growth in
the next fiscal year and beyond.
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. We have again organised
this report around our strategic
pillars which are unchanged.
We manage reporting and track our
metrics at a Group, rather than at an
individual brand level. This year we
have built on the foundation created
in our FY22 report by providing
more depth in our reporting on
important topics. We will continue
to develop our reporting content
under the <IR> framework in
subsequent reporting periods.
In FY23 we have continued our
progress from a single ANZ
retailer to a global group of iconic
brands. This evolution brings with
it increased complexity in our
operational footprints. The Board
and I are pleased by the progress
the company has made in FY23.
STRATEGY, PURPOSE
AND VISION 
In FY22 we focused on bringing the
brands together as a Group with
a new vision and purpose. In FY23
we continued that momentum and
further consolidated Group-wide
operating initiatives in support of
our strategic pillars. We remain
relentlessly focused on our four
strategic pillars: Building Global
Brands, Elevating Digital, Operational
Excellence and Lead in ESG.
We are guided by our vision – to
be the leading family of global
outdoor brands – designed for
purpose, driven by innovation,
best for people and planet. This
vision requires us to balance profit
with purpose and accordingly our
strategic pillar to Lead In ESG.
This year, as reported by the media
in ANZ and abroad, KMD Brands
proudly certified as a B Corporation
(B Corp). B Corp Certification is a
significant achievement for the Group.
The Group has been independently
verified to meet globally recognised
high standards of social and
environmental performance, public
transparency and accountability.
The entire Group and its many
functions, both globally and
locally, came together to achieve
this goal. The Kathmandu brand
recertified and Rip Curl and Oboz
certified for the first time after
several years of preparation. KMD
Brands is one of only 45 publicly
traded companies globally that are
certified B Corps – a significant
achievement for a listed company
of our size, complexity, and scale.
PEOPLE 
FY23 was Michael Daly’s second
year as Group CEO. For much of the
year, Michael was also Acting CEO
for Kathmandu, as we embarked on
a global search for a new leader. We
were delighted to appoint Megan
Welch as CEO of Kathmandu from
FY24. Her brand-building expertise
and experience in retail, wholesale
and digital sales channels in multiple
international markets including the
US, Europe and Asia, is perfectly
suited for Kathmandu at this time.
Last December, we farewelled John
Harvey after more than 12 years of
excellent service to KMD Brands
and Zion Armstrong was appointed
as a new non-executive director.
Zion has had a very successful 30
year career in the global branded
sportswear industry. Zion spent 24
years with adidas, stepping down as
President – North America in early
2022 to return to New Zealand.
FINANCIAL
The first full financial year of
uninterrupted trade since the
pandemic was focused on managing
our cost base in a period of higher
interest rates and inflation and
dampened consumer sentiment. We
have adjusted cost bases, focused
distribution channels, continued to
invest in our brands and worked
hard on distinctive, fit-for-purpose
products. We achieved record sales
of $1.1 billion for the first time, with
an underlying EBITDA of $105.9m.
All our iconic brands grew sales year-
on-year. Rip Curl achieved record
sales, growing sales year-on-year in
all major geographies. Kathmandu
achieved strong sales and profit
growth year-on-year, benefiting
from 12 months of uninterrupted
trade. Oboz sales improved sharply,
recovering from significant supply
constraints in the prior year.
In the second half of FY23 we
performed solidly despite a
significant deterioration in global
market conditions for consumer-
facing businesses. Our balance
sheet is strong, our strategy is
clear and our businesses are leaner
as we move into FY24. We have
good reason to feel confident in
our capacity to deliver improved
performance in the year ahead.
DIVIDEND  
We have maintained the previous
year’s record dividend payout,
declaring $42.7 million dividends in
FY23. The directors have declared a
final dividend of 3 cents per share.
Combined with the 3 cents per share
interim dividend, this delivers a total
payout for the 2023 financial year of
6 cents per share. The final dividend
will not be franked for Australian
shareholders, and not imputed
for New Zealand shareholders.
INVESTOR RELATIONS
KMD Brands has been recognised
for its excellent engagement with
investors in FY23. The Group was
recognised at the Australasian
Reporting Awards (ARA) for our 2022
Annual Integrated Report (AIR). The
Group won a Gold Award for overall
excellence in annual reporting and
a Silver Award for achievement in
sustainability reporting. The Group
also won the award for ‘Best First
Time Entry’ and was an overall
runner-up in the Integrated Reporting
category, a significant achievement
for our first AIR. The Australian
Investor Relations Association also
acknowledged KMD Brands with
a nomination for Best Investor
Relations by a New Zealand company.
THANK YOU 
I would like to record the Board’s
sincere thanks to Group CEO and
Managing Director, Michael Daly, for
his commitment this year. Michael
led the Kathmandu brand very
capably at the same time as leading
the Group. I would also like to thank
Chris Kinraid, Group CFO, for his
nine years of tenure at both KMD
Brands and Kathmandu. Chris leaves
to take up a chief executive officer
role at the end of this calendar year.
I also thank my fellow Board members
for all their hard and insightful work in
a challenging year, the management
teams at Group and in the brands
and each of the almost 5,000 KMD
Brands employees. We are well
positioned for continued growth
in profitability and value thanks to
your hard work and dedication.
Finally I would also like to thank our
shareholders for their continued
support in these more challenging
times for consumer spending.
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Michael Daly
Managing Director and Chief Executive Officer
“
Group CEO report
As Managing Director and Chief
Executive Officer of KMD Brands,
it is with great pride that I
present to you our second annual
integrated report, and our first
as a group with B Corporation
(B Corp) Certification.
FY23 was a year of significant
achievement for the Group.
We delivered a record NZD $1.1
billion in sales for the first time.
All of our iconic brands grew
sales, with Rip Curl and Oboz
delivering record results.
In our first year of uninterrupted
trade post-pandemic, we
also achieved:
• Gross margin improvement
of 20 basis points for the
Group and all brands
• Underlying EBITDA $105.9m
representing a margin
improvement for the Group
• Net working capital as a
percentage of sales improved
to under 20% (19.9%), with
significant reduction in
inventory at Kathmandu.
Despite our strong overall
performance, there is work to
be done to continue to build
momentum in our brands.
Kathmandu continued to cycle
through its second phase of
recovery, with increased incoming
and outgoing travel presenting
an opportunity for growth back
to pre-pandemic levels.
Rip Curl and Oboz continue to
drive growth in sales and need to
balance that with increased EBITDA
margins. Reduced working capital
for these brands is also a focus, as
we transition away from strategic
inventory builds in wetsuits and
footwear through the pandemic.
The Group remains committed
to improving our EBITDA margin
across all brands towards
our target of 15% of sales.
Ultimately, FY23 was a year of great
achievements for KMD Brands
and we’re encouraged by the
gains made across the Group.
STRATEGY
Our strategy and plan remained
unchanged and kept us on a steady
path in FY23. Our commitment to
Building Global Brands allowed us
to achieve key strategic priorities,
including the soft launch of
Kathmandu in Europe and Canada,
the global release of Rip Curl’s
breakthrough wetsuit innovation
the FlashBomb Fusion, and the
extension of Oboz both into
new markets and categories.
Elevating Digital saw the Group
collaborate with brands to launch
Rip Curl’s unique new customer
loyalty platform Club Rip Curl,
develop and deploy several new
regionally focused Kathmandu
websites and elevate the Oboz
e-commerce experience,
delivering triple-digit growth.
We continue to leverage Operational
Excellence across the Group by
bringing the power of our brands
together. This year we saw strong
benefits derived from leveraging
our purchasing power across
brands with service providers. We
will continue to leverage the power
of the Group across systems, and
supply chain in particular, in the
coming years to deliver further
benefits and enable us to achieve
our desired financial targets.
Lead in ESG was an area that
united our Group – certifying as
a B Corp; Kathmandu piloting
industry leading circularity business
models that drove commercial
outcomes; launching Rip Curl’s first
Reconciliation Action Plan; and
Oboz reaching a milestone of five
million trees planted on behalf of
customers. ESG remains at the heart
of the business, and I feel personally
honoured to have been a part of
these achievements for this year.
Each section of our FY23 Annual
Integrated Report will dive into
how we activated these strategic
pillars, including case studies
that give greater detail, so please
continue to read more on this.
CUSTOMER
Our products are made by
passionate people, who live
and breathe the lifestyle of
their customers. We foster and
encourage this, ensuring that our
team can surf when the surf’s up,
or head home early to spend the
weekend camping or hitting the
trail. We are our customers, and
like our customers, we’ve grown
up loving our brands. This gives
us a unique understanding of our
core target, both the adventures
they seek and the gear and
apparel they need to enable that.
Our customers rely on us for their
journeys, so it’s important we live in
their shoes. This shared enthusiasm
for the outdoors, whether that be
surfing, hiking or simply getting
out there, drives us to continuously
innovate for our customers.
To strengthen these bonds and
expand our influence, we’re actively
growing our loyalty programs.
Club Rip Curl unites customers,
encouraging them to share their
experiences of ‘The Search’ and fully
engage with our brand. Additionally,
the reimagined Kathmandu ‘Out
there rewards', set to launch in early
FY24, aims to deepen bonds with
our customers by incentivising
them to experience what they’re
passionate about – outdoor
adventures. As Oboz makes gains on
building community, we’re already
seeing the benefits of connecting
with their core hiker base through
the Oboz Trail Experience.
PEOPLE
This year in my role as Acting CEO
of Kathmandu, I worked closely
with the leadership team to refine
the strategic direction of the brand,
aligning with Group focuses. It was
important for me to get to know the
business in greater detail, to make
sure it was well positioned for its
next stage of leadership and growth.
With greater understanding
of what was required our CEO
search focused on appointing
a leader with hands-on brand
and product experience, from an
internationally successful business.
In Megan Welch, we identified
these important skills, which
ensure we are well positioned to
fulfil our international expansion
aspirations for Kathmandu.
In addition to this, we continued to
broaden the depth of our executive
bench and prioritised our Elevating
Digital and Operational Excellence
strategic pillars. This included a
revised and expanded Group Chief
Information Officer role, and the
newly created Chief Digital Officer
role, which will focus on digital
innovation and transformation
across the Group and brands. Both
roles are in the process of being
filled, as is the search for a new
Chief Financial Officer to replace
Chris Kinraid. We aim to ensure
all candidates start in H1 FY24.
OUTLOOK
This year has been one of many
milestones. Our focus was to
consolidate and position the Group
and our brands for the next stage
of growth, and we have achieved
this. Though we ended the year in
a challenging trading environment,
it’s important to note our record
performance, and the strong
position we find ourselves in for
FY24. With a strategic focus and
commitment, we finish FY23 with a
strong balance sheet, record sales,
and improved margin. FY24 will
see us continue the momentum
and deliver sustainable long-term
growth to our shareholders.
THANK YOU
I’m proud of the collective efforts
of the entire team that sit under
KMD Brands and each of our
iconic brands. I want to take this
opportunity to thank you all. Firstly,
thank you to our retail teams who
continue to go into stores each
day and passionately serve our
customers. To longer tenured team
members, thank you for trusting us
with your careers and combining
your lifelong passion with your
work. We benefit enormously
from your commitment.
A special thanks goes to everyone
across the entire business – both
locally and globally – who was
involved in the B Corp Certification
of the Group and brands; and the
recertification of Kathmandu. This
was a huge task, and we are the
better for it. I appreciate all the
hard work and passion that went
into this fantastic achievement.
A final thanks to Chris Kinraid,
Chief Financial Officer, for his
partnership and dedication over
the years. I wish him well in his next
role as a chief executive officer.
Our team can surf when the surf’s up, or head home early to spend the
weekend camping or hitting the trail. We are our customers, and like
our customers, we’ve grown up loving our brands.”
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KMD Brands Annual Integrated Report 202312
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Governance 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. The Group,
through the leadership of the
Board, has a clear purpose, vision
and defined corporate strategy. We
have well-established strategies,
policies and goals supporting
sustainable development,
underpinned by our commitment
to the B Corp movement.
Kathmandu first became a certified
B Corporation in 2019 and recertified
in 2023. Both Rip Curl and Oboz
achieved B Corp Certification
for the first time in 2023.
A B Corp is a different way of doing
business. It is a governance structure
underpinned by a “benefit mindset”
that considers all stakeholders to
balance purpose and profit. This
means that, as a business, we
consider the impact of our decisions
on our employees, our customers, the
wider community, the environment,
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.
B Corps are a rapidly growing
community driving a global
movement of people working towards
a more inclusive, equitable and
regenerative economic system.
B Corp Certification - and
recertification every three years –
guides KMD Brands’ Environmental,
Social and Governance (ESG) impact
strategy and provides a framework
for continuous improvement.
The process to become B Corp
certified is different to other ESG
reporting frameworks, as it provides a
vehicle for transparent reporting and
disclosure, and also evaluates and
validates a company’s performance.
This enhances accountability
and transparency and gives us a
pathway to continually shape our
business practices to reduce our
negative impacts and create new
value for people and planet.
Our Group Code of Ethics embeds
the benefit mindset into our
expectations of all employees. We
have taken this further by adding
ESG responsibilities to the job
descriptions of all employees and
included ESG-related objectives as
part of our employee goal-setting
and performance review processes.
We are also looking for ways to
incorporate these expectations when
assessing our broader relationships
with manufacturers, licensee
partners, third-party branded
suppliers, and other vendors. The
benefit mindset is also reflected in
the Group’s policy commitment to
responsible business conduct.
At KMD Brands, we are committed to
leading the way by considering our
impact on people and planet in how
we do business and our governance
practices. This is because, by
doing so, we are protecting the
business for the long term, making
it more valuable, supporting the
future financial success of the
Group and preparing for future
regulatory requirements to come.
GRI 2-12, 2-22, 2-23, 2-24
And these principles align with
our fundamental purpose and
vision. Getting people outside and
enjoying the outdoors is what all
our brands are about. We are in
business for profit, but we want
to be a good and robust business
for the long term, and B Corp
Certification positions us for this.
At our Annual Shareholders
Meeting in November 2023,
the Board will propose a
special resolution to amend the
constitution of KMD Brands to
embed our purpose provision,
and to add a requirement for
the Board to consider relevant
stakeholder interests when
making decisions, including
the interests of shareholders,
consequences for the
business in the long term,
the interests of employees,
customers, suppliers, impacts
on the community and the
environment. These clauses
reflect the approach we
already take to governance and
decision making across our
organisation. Incorporating this
provision is a requirement to
maintain B Corp Certification
for our Group beyond 2023.
KMD Brands is committed to
seeking an overall positive
impact on society and the
environment, while delivering
returns to our shareholders,
and proposing this change has
the full support of our Board.
15KMD Brands Annual Integrated Report 202314
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Our board
John Harvey
Retired 1 December 2022
Our management team
Chris Kinraid
Group Chief Financial Officer
Joined Kathmandu in 2014
Brooke Farris
Rip Curl Chief Executive Officer
Joined Rip Curl in 2010
Amy Beck
President Oboz / KMD Brands North America
Joined Oboz in 2019
Jolann Van Dyk
Chief Information Officer
Joined Kathmandu in 2014
Frances Blundell
Chief Legal & ESG Officer
Joined Kathmandu in 2017
Linda Barlow
Chief People Officer
Re-joined Rip Curl in 2019
Lachlan Farran
Chief Commercial Officer
Re-joined Rip Curl in 2016
Mathieu Lefin
President KMD Brands – Europe
Joined Rip Curl in 2009
Megan Welch
Kathmandu Chief Executive Officer
Joined August 2023
Michael Daly
Managing Director and Chief Executive Officer
Joined Rip Curl in 2002
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.
Brent Scrimshaw
Non-Executive Director
Appointed 2 October 2017
Philip Bowman
Non-Executive Director
Appointed 2 October 2017
Andrea Martens
Non-Executive Director
Appointed 1 August 2019 
Abby Foote
Non-Executive Director
Appointed 15 October 2021
Zion Armstrong
Non-Executive Director
Appointed 1 December 2022
Michael Daly
Managing Director and Chief Executive Officer
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 Group is managed
effectively 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.
David Kirk
Chairman
Appointed 21 November 2013 
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WHAT MATTERS MOST
Materiality approach
During FY23, we conducted a
materiality assessment refresh.
This looked at the relevance
and importance of the material
issues identified in 2021, and
identified emerging issues.
This process involved extensive
stakeholder surveys and confidential
interviews. Selected stakeholders
completed a comprehensive online
survey; this was complemented with
simplified surveys of employees,
ambassadors and athletes, and
polls both in-store and across
social media platforms. We
integrated specific ESG questions
into surveys conducted in eight
supplier locations in Vietnam. We
also investigated scientific, industry,
economic and political sources to
understand emerging trends.
THE MATERIALITY
ASSESSMENT PROCESS
We received input from a large
number of stakeholders during this
materiality refresh process, including
over 30 interviews with individuals.
Respondents were asked to examine
the ESG and non-ESG material
issues we identified in our FY22
Annual Integrated Report and to
provide their perspectives and
importance of each issue to:
• KMD Brands’ ongoing business
success and reputation
• The stakeholders' ongoing
relationship with KMD Brands,
either as an individual or as a
representative of an institution,
such as an investment manager.
We asked respondents to rate
the relative importance that they
think KMD Brands should give to
each material issue and whether
they think KMD Brands is meeting
their expectations on each issue.
We also asked key stakeholders
to share their perspectives on:
GRI 2-12, 2-29, 3-1
• Specific ESG sub-issues that
KMD Brands is currently focusing
on in our ESG Strategy
• Issues that in the opinion of the
stakeholder are missing from the
current material issues list and that
we should give more attention to
• Issues “on the horizon” that in
the opinion of the stakeholder
have the potential to become
more material to KMD Brands
over the next 5-10 years.
The materiality assessment refresh
demonstrated that, according to
our stakeholders, we are on the
right track, and the material issues
identified in the 2021 materiality
assessment are still the right ones
for KMD to focus on in 2023. All
our stakeholders are unanimous
in this regard. Both our investors
and our employees observed that
we are gaining traction on our
key ESG issues. In addition, the
majority of stakeholders indicated
that KMD Brands’ ESG leadership
remains important both for ongoing
business success and to them as
stakeholders. Our stakeholders
made some observations around
nuanced changes in the market
and emerging issues that we
need to be aware of and monitor,
for future incorporation into our
strategy. We have included the
topic of biodiversity impact into our
material issues for our FY23 report,
and separated out the topics of
geopolitics and digital transformation.
OUR KEY STAKEHOLDERS
In reviewing our material topics
for FY23, we consulted with the
stakeholders that make a substantial
impact on our Group, or on whom
we have a substantial impact
through our business activities:
• Our shareholders
• Our board of directors, executive
and functional leaders
• Our employees
• Our consumers and
wholesale customers
• Suppliers and workers
• Financiers
• Regulators
• Community groups including our
athletes and brand ambassadors.
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS

Our material issues
Our material issues are defined
as having the most impact
on our ability to create value
for our stakeholders.
Under this definition we acknowledge
that there are some trade-offs
between material issues.
A material issue may require
substantial investment, and therefore
negatively influence KMD Brands'
value creation, but create value for
employees or improve customer
experience. 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. Our business success can
be adversely or positively affected
by these issues depending upon
the degree to which we anticipate,
prepare for, and respond. We discuss
the impacts of these material issues
throughout our report on the capitals
(resources) we rely on to create
value, and how our strategic focus
areas are informed and prioritised
to respond. Our Board has reviewed
and approved these material topics
for the FY23 reporting period.
GLOBAL ECONOMY
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. Inflationary
pressures and the rising cost of
living are also impacting consumer
discretionary spending habits.
Consumer lifestyles have shifted and
spending patterns are changing.
GEOPOLITICAL LANDSCAPE
The turbulent geopolitical landscape,
global conflicts and regional
political instability carry the risk
of heightened trade tensions,
regulatory uncertainties, supply chain
disruptions, potential security threats,
and potential sanctions for countries.
All of these issues could impact our
ability to source input materials,
lead to market volatility, create
increased operational complexities,
and reduce access to key markets.
SUPPLY CHAIN RESILIENCE
Our ability to effectively and
efficiently transport products globally
and reach our end-customers
can be significantly affected by
shipping delays, port congestion,
and access to regional freight
forwarding. These factors can have
a substantial impact on the smooth
flow of goods, making it challenging
for us to navigate the supply chain
and deliver products in a timely
manner. Addressing issues related
to shipping delays, managing port
congestion effectively, and ensuring
reliable access to regional freight
forwarding are crucial to overcoming
these obstacles and maintaining
seamless global operations.
CLIMATE CHANGE
The pressing need for urgent
transformative change to tackle the
impacts of climate change and global
warming represents a significant
material issue that all businesses
are facing, encompassing physical,
regulatory, market and social risks,
while also presenting opportunities
for innovation and growth through
mitigation, adaptation, transparency
and collaboration. Our commitment
and plan to reduce the greenhouse
gas emissions connected with
our business and our products
continues to be 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
an ongoing challenge. We need
skilled resources 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.
DIGITAL TRANSFORMATION
The shift towards the digital
world requires us to keep pace
with future-fit platforms and tools
and to operate with agility. Digital
transformation refers to the ability
of KMD Brands to harness data
to drive decision making and
accelerate growth across our direct-
to-consumer business to elevate
the customer experience, enhance
efficiency and support innovation.
BRAND POWER
The strength of each of our
brands is a core 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.
BIODIVERSITY LOSS
Biodiversity loss encompasses
depletion of natural resources,
including ecosystem disruption,
habitat loss, pollution and impacts
on water quality and availability,
with systemic consequences
for human health and planetary
stability. We are reliant on natural
resources to create our products
and need to find ways to minimise
our impacts on the natural world.
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.
To achieve success, we need to focus
on effective communication and
employee engagement, robust project
planning and leadership support.
CY B E R A N D 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 effectively.
GRI 2-14, 3-2
MATERIALITY MATRIX
Importance to KMD Brands' business success
Importance to me as a stakeholder
Mid
Mid
High
High
Ver y High
Ver y High
Change
management
Biodiversity
loss
Global
economy
Digital
transformation
Climate
change
Cyber and
data security
Supply chain
resilience
People and
wellbeing
Brand power
Geopolitical
landscape
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Our material issues
(see pages 20-21)
STRATEGY
How we create value
OUTCOMES FOR OUR STAKEHOLDERS
THE RESOURCES WE RELY ON OUR VALUE CHAIN
OUR FUNDING
Over 10k shareholders
$310m syndicated debt facility
OUR PRODUCTS
AND CHANNELS
Over 9,000 total doorways
(owned, licensed, wholesale)
OUR CREATIVE POWER
Product development, design
and innovation
OUR PEOPLE
4,843 employees
x
OUR PARTNERSHIPS
189 Tier 1 factories making
our products
OUR ENVIRONMENT
16 countries we source
materials from
FY23 OUTPUTS
TIER 4
Raw material
production
TIER 2 and 3
Raw material processing
and fabric mills
NZD $1,103m
Total revenue
FOR CUSTOMERS
Designing innovative, technical outdoor
lifestyle and sports products
4.3 YEARS
Average tenure of
permanent employees
FOR EMPLOYEES
Providing a place for all people to realise
their full potential
NZD $42.7m
Dividends declared
FOR INVESTORS
Paying total shareholder returns. Providing a
sustainable investment option
NZD $1.14m
Total community
investment
FOR THE COMMUNITY
Creating positive change in the communities
we impact
419
Tonnage of waste diverted
from landfill
29%
Scope 1 & 2 location-based
emissions
reduction since FY19
FOR THE PLANET
Striving for a positive impact on
the environment across the
whole life cycle of our products
40
Supplier partnerships
> 10 years
FOR SUPPLIERS
Providing long-term partnerships,
supporting strong worker wellbeing
OUR VISION
To be the leading family
of global outdoor brands
– designed for purpose,
driven by innovation, best
for people and planet.
BUILDING GLOBAL BRANDS
E L E VAT I N G D I G I TA L
OPERATIONAL EXCELLENCE
LEAD IN ESG
TIER 1
Final stage manufacturing
Freight, distribution centres
and third party logistics
Retail and wholesale network
Take-back, repair, resale,
recycling programs
GRI 2-6
INSPIRING PEOPLE TO
EXPLORE AND LOVE
THE OUTDOORS
KMD Brands Annual Integrated Report 20232223
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES

Our strategic pillars
25KMD Brands Annual Integrated Report 202324
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS
Our strategy consists of four key
pillars: Building Global Brands,
Elevating Digital, Leveraging
Operational Excellence, and
Leadership in ESG. These pillars are
designed to support KMD Brands'
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 and how our strategic pillars
address the strategic risks to KMD
Brands, together with the challenges
and opportunities ahead. Through
the consideration of our material
issues across each of our strategic
pillars, we review and disclose the
most material impacts we have on
value creation, preservation and
erosion across each of the resources
we rely on to create value for our
stakeholders that are essential for our
success. The resources described
on the previous page are our
interpretation of the capitals under
the Integrated Reporting Framework.
SUSTAINABLE
DEVELOPMENT GOALS
We acknowledge the impact of our
businesses on people and planet
and accept our responsibility
to advance the United Nations
Sustainable Development Goals
(SDGs). We consider the SDGs in
our strategy and our reporting,
which underpins all our business
activities. The goals where we have
the most impact are shown below:
Promote sustained, inclusive and
sustainable economic growth, full
and productive employment and
decent work for all
Reduce inequality within and among
countries
Ensure sustainable consumption and
production patterns
Take urgent action to combat
climate change and its impacts
This year, we have continued to
build on our Group 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.
BUILDING GLOBAL BRANDS
We are actively building our brands to have global appeal, presence and
reach through investing in world class brand and customer experiences.
We are focused on extending awareness of the Rip Curl brand in North
America, growing brand recognition in Europe to a top three position, and
being the top surf brand in Australasia. We have launched Kathmandu into
Canada and Europe, highlighting its New Zealand origins and will continue
to build on the brand’s presence in these markets 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, to re-launch the brand in ANZ 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 Group digital platforms
to deliver a truly world-class experience to consumers, wholesale
customers, suppliers, and our employees. Through these platforms
we support a unified customer experience, accelerating brand
growth, and provide commerce operations for the whole Group.
LEAD IN ESG
By integrating our ESG pillars of Communities, Climate and Circularity into our
business practices, we are aligning the KMD Brands Group with sustainable
development goals and demonstrating our leadership in ESG within our
sector. Through collaboration, transparency and adherence to B Corp
Certification standards, we make a positive social and environmental impact
while also achieving long-term business success.
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 efficiencies 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.

BUILDING GLOBAL BRANDS
Metrics that matter
FY23 SALES GROWTH YEAR ON YEAR %
+17. 5%
Retail
Wholesale
+11.0%
Licensing / Royalties
+9.8%
BY
CHANNEL
-8.2%
Online
North
America
+24.4%
+12.5%
New Zealand
+9.6%
Australia
BY
REGION
Europe
+5.6%
Rest of World
+11.2%
Oboz
+61.8%
+10.6%
Kathmandu
+8.3%
Rip Curl
BY
BRAND
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ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
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OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS

MATERIAL ISSUES: GLOBAL ECONOMY • GEOPOLITICAL LANDSCAPE • DIGITAL TRANSFORMATION
SUPPLY CHAIN RESILIENCE • BRAND POWER
OUR OBSERVATIONS
Our Group consists of three iconic
brands: Kathmandu, Rip Curl and
Oboz. Our brands are iconic not only
because they represent innovative,
high-performance products for the
outdoor consumer, but because of
the values that underpin them. Strong
brand equity is our material asset
and it is fundamental that we grow
our brands strategically and steadily.
Building global brands requires
a purpose-driven approach, a
motivated, engaged and talented
team, and a deep understanding of
our customers’ needs. Our brands
have strong foundations built around
activities in the outdoors and our
purposefully designed, innovative
products allow our customers
to thrive in their adventures. By
enhancing customer experiences in
store and online through our multi-
channel strategy, we can continue to
build our brands on a global scale.
To maintain our relevance and
appeal to our customers, while
staying ahead of our competitors,
we must consistently deliver
desirable products that are
innovative, responsibly sourced
and made, and enhance the
outdoor experience. Our brands
must make the outdoor experience
more enjoyable, comfortable and
inspiring for our customers.
We remain true to our mission and
pricing strategies, despite inflationary
pressures, driven by global economic
conditions and geopolitical
uncertainties, that have continued
to increase production costs. The
current economic environment
remains challenging for many
businesses, with many apparel goods
retailers carrying excess inventory.
We have observed examples
of aggressive and deep price
discounting from some competitors,
adding to the challenge of driving
sales growth and maintaining margin
without losing our market share.
In the last few months of FY23,
we started to see a softening in
wholesale and consumer demand in
some markets. However, each of our
brands’ positioning remains strong,
all showing growth during the year
despite the economic headwinds.
OUR ACTIONS
We are investing in the long-term
success of each of our brands
through new initiatives, leadership
in product innovation, multi-channel
offerings and by expanding into new
geographies. We continue to bring
our brands to life through relevant,
targeted, consumer-driven content.
During FY23, we continued to
invest in the Rip Curl brand in the
US and global surf market through
ongoing sponsorship of the Rip
Curl World Surf League Finals and
by expanding the Hawaii retail
footprint. Product development at
Rip Curl is relentlessly committed
to quality, sustainability, innovation
and creativity, focusing on our core
product categories of wetsuits,
boardshorts and swimwear. The
FlashBomb Fusion with seams that
don’t leak is already making waves,
having launched in Australia and
New Zealand in March 2023. Rip
Curl is enhancing our engagement
with female customers by creating
more inclusive content and
expanding the wholesale presence
of our women’s range. During FY23,
Rip Curl launched the Club Rip
Curl loyalty program in Australia.
Strong growth in membership was
achieved in the program’s first
year, the program placing runner
up at the World Loyalty Awards
in the category of Best Customer
Experience. Online, Rip Curl pushed
into European marketplaces
with strong initial success.
Kathmandu commenced building
new customer relationships in
Europe, the UK and Canada during
FY23, highlighting the New Zealand
origins of the brand, while leveraging
existing Rip Curl relationships,
team members and infrastructure.
New direct-to-consumer websites
were launched in Canada, France
and Germany in September 2022.
Kathmandu continued to bring to
life our new brand purpose and
vision through ‘We’re Out There’
campaigns, which were nominated
for several global marketing awards.
During FY23, Kathmandu focused
on refining and understanding our
core target customer, and built
brand equity through community
engagement, strong partnerships
and brand ambassadors. Product
innovation has always been central
to the Kathmandu business and
that continued in FY23 with
the launch of the Heli R – a
reinvention of the flagship Heli
jacket – and its digital product ID.
During FY23, Oboz focused on
elevating the retail experience of
our customers to increase brand
awareness. Our integrated marketing
campaigns used storytelling, events
and experiences to emphasise Oboz’
key points of differentiation including
the out-of-the-box fit and our B Corp
Certification. Oboz is committed
to promoting inclusiveness in the
outdoors, with several initiatives
spanning community outreach and
education, and through support
for partners including Black Folks
Camp Too. Oboz expanded its
product offering during the year,
launching the much-anticipated
Katabatic range, which is already
demonstrating success in the
important Fast and Light category.
Our certification as a B Corp during
FY23 further demonstrates our
commitment to build the global
reputation of our brands as we sit
amongst an esteemed group of
only 45 publicly traded companies
worldwide to have achieved this.
B Corp Certification is not just a
brand differentiator. It also reinforces
each brand’s purpose and values,
enhances brand reputation, attracts
socially conscious customers
and investors, and separates
us from our competitors.
CHALLENGES AND
OPPORTUNITIES AHEAD
In the short term, our brands
face challenges with geopolitical
uncertainty, economic volatility,
market competition, supply chain
disruptions, and cost-of-living
impacts on consumer spending.
Our competitors are pricing
aggressively to shift high levels
of inventory and challenging our
market share. However, there are
opportunities for each brand to
grow. Some competitors will pivot
towards strategies that reduce
investment in brand development,
which presents clear opportunities
to establish our brands in key
locations and new markets and to
expand our points of differentiation.
The shift towards wellness is one
we are watching closely. More
customers are seeking healthier
and more active lifestyles, and are
looking for products that align with
this trend. By responding to this shift,
we can tap into a larger customer
base and cater to their needs for
balance, active living and wellbeing.
To capitalise, our brands will focus
on product development, brand
licensing opportunities, marketing
and messaging, education and
content creation, partnerships and
collaborations, as well as customer
engagement. By incorporating these
strategies, we can position our
brands as leaders in the wellness
space, offering products that support
healthy and active lifestyles.
There is immediate opportunity
for growth of the Rip Curl brand
through the expansion of Club Rip
Curl, including launching in additional
regions, with a longer-term target
of one million members. Growth
will also be supported by digital
transformation, including launches
on key marketplaces, improvements
to the website experience, and
expansion of valuable wholesale
partnerships. In the medium term,
Rip Curl will continue to explore
opportunities to open women’s-
specific stores. We will continue
to grow the brand by opening 10
new stores each year while also
expanding key flagship stores and
identifying key wave pool locations
and opportunities to connect the
brand with all levels of surfer.
The relaunch of the Kathmandu
Summit Club as ‘Out there rewards’
in early FY24 provides an immediate
and exciting growth opportunity
that engages customers and creates
new value. By resetting core lines
to reduce range volume and align
product offerings with the current
target customer, focusing on “best
at” products including insulation,
bottoms and packs Kathmandu can
strengthen our brand presence in
priority markets. This will provide a
solid platform for international growth.
We will also focus on extending
Kathmandu’s presence in Europe
and Canada, with the initial low-risk
soft launch in FY23 expanding to
a full scale, multi-channel strategy
in the medium term. Kathmandu
is refreshing the look and feel of
our store fitouts to enhance the
presentation of our brand image
and ethos across the store network,
and to create unique and engaging
customer experiences. Additions
to the store network in key growth
corridors appeal to new customer
demographics while retaining our
existing, loyal customer base.
For Oboz, there is significant
opportunity in the global marketplace
to grow the brand to the size of key
competitors. Oboz has the capacity
to take market share by continuing to
expand our product categories and
by demonstrating product innovation
and a clear sustainability roadmap.
For FY24, Oboz will focus on new key
wholesale accounts and accelerate
our marketplace presence and
e-commerce experience. Dedicated
resources to drive the Oboz brand
momentum in Australia and Europe
has been established. The longer-
term opportunity of an Oboz concept
store will be explored to further build
brand awareness. A relaunch of the
brand in Australia and New Zealand
is planned for FY24, with expansion in
Europe a longer-term target into FY25.
“
Our certification as a
B Corp during FY23
further demonstrates
our commitment to
build the global
reputation of
our brands.”
Michael Daly
Managing Director and
Chief Executive Officer
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How we are building global brands

FINANCIAL
CHANNELS
NZD
$422.2m
Total sales
Metrics that matter
Improve the wellbeing of the
world through the outdoors.
NZD
$58.8m
Online sales
Representing 14.0% of
direct-to-consumer sales
158
Retail stores
Almost 100
Wholesale doors
BRAND
1.9 million
Active Summit Club members
74
Net Promoter Score
SALES MIX
Online
14%
85%
Retail stores
BY
CHANNEL
Wholesale
1%
BY
CHANNEL
A new era of growth
and exploration
Kathmandu is embarking on
an exciting journey of global
growth. That’s why we cast
our net far and wide to find
the next leader for our brand.
After a year-long search, we
were excited to announce the
appointment of Megan Welch
as Kathmandu’s next CEO.
Megan takes the reins from Group
CEO and Managing Director of
KMD Brands, Michael Daly, who had
stepped into a caretaker role while
the executive search was underway.
Megan brings a wealth of experience
and leadership to our team. With
an impressive track record in global
brand and product management,
Megan spent 18 years at Crocs, most
recently as Senior Vice President
and General Manager of Crocs
Asia Pacific. Joining Crocs when
it was a three-year-old company,
Megan played a pivotal role in
the brand’s remarkable growth
trajectory, holding roles in product
development, merchandising,
marketing and commercial strategies.
Megan takes on her new role,
based in Christchurch, from August
2023. Reporting directly to Michael
Daly, Megan will work alongside
brand CEOs Brooke Farris from Rip
Curl and Amy Beck from Oboz.
As Megan told the Australian
Financial Review in May 2023:
“With the brand leading in the ANZ
market, but new to Europe and North
America, I’m looking forward to
partnering with Michael and my new
team to accelerate the momentum”.
With expertise spanning retail,
wholesale and digital channels, and
international experience across
the US, Europe and Asia, Megan is
the right leader to take Kathmandu
to new heights and inspire new
adventurers around the world.
CASE
STUDY
Megan Welch
Kathmandu CEO
International
1%
New Zealand
27%
72%
Australia
BY
REGION
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FINANCIAL
CHANNELS
NZD
$99.3m
Total sales
Empower the people of the
world to blaze their own trail.
Over 2,000
Wholesale doors
1
Direct-to-consumer website
BY
CHANNEL
Online
6%
94%
Wholesale
SALES MIX
Metrics that matter
NZD
$5.6m
Online sales
>350% online sales growth
year on year
Scaling for success
Paris Fashion Week made
the perfect launch pad for
Kathmandu’s entry into the
European, Canadian and
United Kingdom markets. On
30 September 2022, more
than 75 media influencers and
fashion tastemakers joined us
at specialty boutique Leclaireur
in Paris to debut our Autumn
and Winter ‘22 range.
President, KMD Brands Europe,
Mathieu Lefin told the packed
crowd that the new venture was in
response to growing demand from
global consumers. “Kathmandu
is Australia and New Zealand’s
favourite outdoor brand, and
we look forward to seeing local
outdoor enthusiasts discover our
innovative and sustainable gear.”
Among the eco-conscious
showstoppers in the Autumn and
Winter ’22 range, the NXT-Level
jacket earned plenty of praise.
Condé Nast Traveller applauded the
“ultimate winter-weekend jacket for
anyone who loves to travel light”.
KMD Brands leveraged Rip Curl’s
long established global operations,
including our distribution centres,
and expert regional teams, to
scale Kathmandu for success.
Almost 100 doorways now stock
Kathmandu in Europe, Canada
CASE
STUDY
and the United Kingdom. Four
websites cater to customers in the
UK and Ireland, French and German
speakers in Europe, and English and
French speakers in Canada. Our
presence on Instagram, Facebook
and TikTok continues to grow and
bring us closer to customers.
Our dedicated teams in each market
are now busy hosting seasonal
previews and engaging in proactive
marketing and media relations
to boost the Kathmandu brand.
Following the initial soft launch, we
are now considering our pathways
to accelerating the channel growth
in these markets for execution
through 2024 and beyond.
International
7%
Canada
7%
86%
USA
BY
REGION
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ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
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A better kind of fast
CASE
STUDY
In 2022, we launched our first
foray into the global ‘fast
trail’ category with the Oboz
Katabatic, a collection of
shoes that hits the sweet spot
between running and hiking.
Named after a Katabatic wind that
gathers speed as it blows down the
slope of a mountain, our footwear
helps customers move faster and
travel further on their trails.
The Katabatic line signifies a new
direction for Oboz – one that
taps into a global trend that is
a fast-growing and high-growth
category in outdoor footwear.
The fast trail line is built on
thousands of kilometres of underfoot
insight engineered into transformative
footwear. The Katabatic adapts
to the terrain and the natural
biomechanics of the foot, and does
so without sacrificing traction,
cushioning, support or quality.
The Katabatic collection has
attracted rave reviews. Outside
magazine, the global authority for
the outdoors industry, voted the
Oboz Katabatic Low men’s shoe the
“best day hiking boot”. “I’m a very
heavy-heeled hiker, and these were
like walking with springs in my heels,”
reported Alabama-based tester, Seth
Kromis, after hiking 16-kilometres
in them with a day pack.
The fast trail category is a natural
brand extension for Oboz and the
Katabatic range of products has
attracted new customers, grown
our market share and delivered
better foot health, better adventures
and a better kind of fast.
Blazing a B Corp trail
CASE
STUDY
Since our very first pair of
Oboz were sold in 2007, we
have planted a tree for every
pair sold – that’s five million
trees and counting. It’s because
of this passion for the planet
and the people on it that we
are always looking for better
ways to do business.
In early 2023, Oboz was certified as a
B Corporation. Oboz is now counted
among a global community of
businesses – including Rip Curl and
Kathmandu – that are championing
an inclusive, equitable and
regenerative economy.
Because the outdoors is important to
us, Oboz balances profit with our
impact on the planet and the people
that our brand touches. We have
bold environmental, social and
governance targets, and our new B
Corp Certification means that we
meet stringent standards for positive
social and environmental impact.
But this is just the beginning. To help
us continue to serve the wellbeing of
all, we utilise the B Corp movement
to strengthen our commitment to our
three areas of focus: Communities,
Climate and Circularity.
B Corp certification is something few
footwear companies obtain, which is
significant in the competitive
outdoors market. For adventurers
and trailblazers out there, this
stringent certification confirms we
are constantly improving our
standards for positive social and
environmental impact. B Corp
Certification isn’t an end goal for
Oboz. The steps we have taken to
reach this point are the first on a
long trail. With B Corp recertification
every three years, we will continue to
meet high standards of social and
environmental performance,
transparency and accountability.
Now we do so with an international
movement behind us.
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FINANCIAL
CHANNELS
NZD
$581.5m
Total sales
NZD
$34.9m
Online sales
Representing 10.6% of
direct-to-consumer sales
Metrics that matter
To be regarded as the
ultimate surfing company
in all that we do.
169
Owned stores
232
Licensed stores
31
JV stores
Over 6,000
Wholesale doors
BRAND
Over 220k
Active Club Rip Curl members
Net Promoter Score
77
Across Australasian stores
The swell of success
CASE
STUDY
Many surfers pick the Californian
surf break of Lower Trestles as
the wave they'd most like to surf,
and the pristine four-to -six-foot
peaks didn’t disappoint fans of
the 2022 Rip Curl World Surf
League Finals.
Rip Curl is a company built
by surfers for surfers. Our
determination to be front and
centre during the ultimate day
in surfing led us to establish a
three-year partnership with the
World Surf League in 2021.
In 2022, our second year of the
partnership, the Rip Curl WSL Finals
attracted a global audience. Fans
flocked to social channels to watch
and celebrate Stephanie Gilmore
secure a record-setting eighth
world title and assert her position as
the greatest women’s competitive
surfer. Filipe Toledo took home his
first and long-sought world title
in front of his hometown crowd
and millions more fans online.
For the second year in a row, Rip
Curl was the most visible brand
on WSL channels. We reached the
most fans pre-event in WSL history,
with 16.7 million pre-event video-
on-demand views. The live and
video-on-demand coverage of the
Rip Curl WSL finals attracted more
than 10.5 million views, and the
410 million impressions on social
handles was up 5% year-on-year.
The winner-takes-all final attracted
the largest single day live audience
in the competition’s history – a 22%
increase on 2021. We amassed 93
million social impressions in just
one day – not to mention more
than six thousand press articles
before and after the event.
Rip Curl first sponsored a
professional surfing event in 1973,
the Rip Curl Pro at Bells Beach. With
our commitment to the Rip Curl WSL
Finals, we continue the tradition of
supporting and showcasing the best
surfing to fans across the globe.
SALES MIX FY23
2%
Other
Retail
stores
51%
Online
6%
Wholesale
41%
BY
CHANNEL
BY
CHANNEL
Rest of world
12%
Europe
18%
45%
AU & NZ
25%
North America
BY
REGION
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50 years of innovation
in one wetsuit
In 1969, Rip Curl began to
revolutionise the surfing wetsuit
to help surfers stay out for
longer in the cold southern
waters off Australia’s Bells
Beach. Our team has invested
more than 50 years of research,
development and innovation into
a product that has redefined
the possibilities of wetsuits.
In March 2023 we launched the
FlashBomb Fusion – a wetsuit that
is warm, flexible, durable and 96%
stitch-free. Our Global Product
Manager of Wetsuits, Adam
Brissenden, hails this as a “new mark
in the sand” for surfing equipment.
Most wetsuits are made from
neoprene, a synthetic rubber material
known for its flexibility, durability,
insulation and resistance to water. “As
neoprene has become stretchier and
stretchier, and because that’s where
a lot of the movement is, the seams
have become the weak point of many
suits,” Adam explains. “This leads
to cold water leaking into the suit,
and the surfer becoming cold.” Rip
Curl’s Fusion Dry Seam Technology
solves the age-old issue of wetsuits
leaking at the seams, without
resorting to using stiff liquid tape
or stitching that can compromise a
suit’s performance and integrity.
This breakthrough innovation – our
most technically advanced seam
construction yet – uses a unique
bonding technique that doesn’t
require stitching (the source of
the pinholes that let cold water
leak in). Combined with 100%
E7 Flash Lining, E7 Flash Lining
Tape, a zip-free entry and sealed
cuffs, the FlashBomb Fusion is
the ultimate in surfing comfort.
The FlashBomb Fusion has been
well received by Rip Curl’s core
surfer target audience, with robust
sales across retail, e-commerce
and wholesale channels. And
there’s plenty of growth ahead
for this wetsuit that blows all
others out of the icy water.
CASE
STUDY
E L E VAT I N G D I G I TA L
Metrics that matter
NZD
$99.3m
Total online sales
13.2%
Online penetration as a % of
direct-to-consumer sales
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to the long term goal of online sales
accounting for 25% of direct-to-
consumer revenue – a goal that each
of our brands is working towards.
The ever-evolving landscape of cyber
threats and sophisticated threat
actors remains a critical risk. We
remain vigilant and invest in top-of-
the-line security tools. We continue to
embed risk-based processes across
our operations in relation to data
protection is aligned with global
best practices.
With the changing needs of
our customers and technology
advancements, we continue to
reimagine the future of Unified
Commerce. This will mean keeping
pace with evolving consumer
expectations for technology,
products and brand experiences.
Rip Curl continues to innovate with
the evolution of the Search GPS
ecosystem. Search GPS connects Rip
Curl with our core surfer community
in the most authentic way, something
we continue to strive for across our
group of brands.
With the changing
needs of our
customers and
technology
advancements,
we continue to
re-imagine the
future of Unified
Commerce.”
How we are elevating digital
MATERIAL ISSUES: GLOBAL ECONOMY • DIGITAL TRANSFORMATION • CYBER AND DATA SECURITY
CHANGE MANAGEMENT • BRAND POWER • CLIMATE CHANGE
OUR OBSERVATIONS
Consumer spending patterns have
undergone a significant shift in
response to economic conditions
and the transformative impact of
COVID-19. Today’s customers are
more discerning than ever before,
seeking personalised and inspiring
shopping experiences. They now
expect seamless, omni-channel
access to a unified offering. In the
last 12 months, consumers have
returned to shopping in stores,
and our omni-channel offering
supports this consumer choice.
To safeguard our brands’ reputations
and recognition, we continue to invest
in a strong digital presence. Our
customers want to engage with our
brands through a range of channels,
and this is driving an evolution
in how we communicate with
customers and conduct transactions.
To grow our direct-to-consumer
business, we are using data-driven
insights to inform decision-making
and provide a rich, personalised
customer shopping experience.
To remain agile and fit for the future,
we must continuously review, adapt
and evolve our platforms and tools.
To carefully manage change, we
engage all relevant stakeholders and
then verify the impact of change on
interconnected business procedures.
OUR ACTIONS
For FY23, our priority has been to
embed and amplify the systems,
tools and processes implemented
in prior years. In FY22, we made
significant investment in customer-
facing, best-in-class digital
platforms to support our unified
commerce objectives. Our point-
of-sale, e-commerce, and insights
and personalisation platforms,
enable us to present a fully unified
commerce capability in our direct-
to-consumer offerings. During FY23
we consolidated that functionality
to leverage these investments.
By integrating our personalisation
engine with our loyalty platforms
we can gather data insights, better
understand customer preferences
and unlock further sales growth
potential. During FY23, we
implemented several personalisation
use cases which drove great results
and delivered a return on investment
that has exceeded our expectations.
Expanding on user experience
and customer centricity during the
year, Kathmandu has implemented
shoppable user generated content
to further increase acquisition.
We optimised the speed of the
Kathmandu website to enhance its
reliability and experience. We also
introduced personalised product
pages and recommendations
for every customer to drive
engagement and revenue.
Rip Curl launched a new loyalty
program, Club Rip Curl, in early FY23
connecting customers to the Group’s
loyalty ecosystem for the first time
and giving us a single view of each
customer to create personalised
communications. The program
leverages the same technology
platform currently used to manage
Kathmandu’s loyalty club members.
Club Rip Curl launched in Australia
and New Zealand in September
2022 and has already amassed
more than 220,000 members.
Oboz continued to build a direct-to-
consumer online trading site during
FY23 that delivered consistent
growth and exceeded performance
expectations. Oboz maintains
channels on Amazon, Backcountry
and Zappos marketplaces
expanding brand recognition
and offering greater choice and
convenience to customers.
The Group has an established set
of security standards that detail the
steps taken to secure our systems
and information from people, process
and technology perspectives.
This framework aligns with the
CIS (Center of Internet Security)
framework for Information Security
Management Systems (ISMS)
and Risk Management. During the
first half of FY23, Rip Curl made a
voluntary notification to a limited
number of European customers
following an incident of unauthorised
access to its European website in
2022. This involved basic customer
information and Rip Curl notified
the relevant European regulatory
authorities and impacted customers.
No further action was taken by the
regulatory bodies. No other Rip
Curl systems, networks or entities
were affected by the incident.
In early FY23 Kathmandu launched
two new European direct-to-
consumer websites in Germany and
France, and both Kathmandu and Rip
Curl launched new sites in Canada,
supporting the future growth of the
brands in these emerging markets.
CHALLENGES AND
OPPORTUNITIES AHEAD
A key and immediate growth
opportunity lies in expansion of the
Group’s loyalty programs. Rip Curl
will launch Club Rip Curl online in
the US in early FY24, Kathmandu will
relaunch the Summit Club program
as ‘Out there rewards’ in early FY24,
engaging with customers in new
ways and transforming a discount
club into a mechanism that unlocks
brand loyalty and awareness.
During FY24, we will continue to
improve our digital execution by
extending the enterprise resource
planning platforms from ANZ
into the USA to support a unified
customer experience and commerce
operations. By accelerating
integration of these platforms for
the North American market we can
support omnichannel delivery and
expand our loyalty programs.
The Elastic suite of tools was a
key foundational workstream for
FY23 rolling out in Australasia in
early FY24. This will enhance our
business-to-business purchasing
capability for our wholesale
channel and digitise our wholesale
merchandising process. These tools
will help our brands to reduce the
use of physical samples in favour of
digital samples over time, and reduce
paper consumption through digital
catalogues for wholesale customers.
Expanding on our D365 and
e-commerce platforms will enable Rip
Curl to introduce click-and-collect
in Australia early FY24, followed by
more advanced options later in the
year. This strategic move will harness
the strength of our store network
for fulfilling online orders, improving
the customer experience, increasing
store inventory sell-through and
contributing to our sustainability goals
by reducing waste and emissions.
Rip Curl is making strides in digital
revenue growth by online customer
experience and expanding into online
marketplaces. By prioritising these
enhancements, Rip Curl moves closer
GRI 418
Jolann Van Dyk
Chief Information Officer
“
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Climate action in a click
Kathmandu customers in
Australia and New Zealand
can now offset part of their
carbon impact at checkout.
With the help of CarbonClick,
Kathmandu customers can add $2
to their transaction to contribute
directly to carbon offsetting projects
in Australia and New Zealand
– with each $2 offset capturing
carbon from the atmosphere
and protecting ecosystems.
Launched in May 2023, the offsetting
option is the result of Kathmandu’s
new technology partnership with
CarbonClick, an Auckland-based
envirotech company with a mission
to make carbon offsets simple,
trustworthy and cost effective.
Like KMD Brands, Kathmandu,
Rip Curl and Oboz, CarbonClick
is B Corp certified, which means
it meets high standards of social
and environmental performance,
accountability and transparency.
By harnessing digital technology,
this partnership will promote
reforestation projects in
Australia and New Zealand.
Australian customers can contribute
to the Everdale Native Regeneration
project in New South Wales, a
project registered under the
Australian Emissions Reduction
Fund that is regenerating more
than 5,000 hectares of acacia
woodland and eucalypt forest.
In New Zealand’s Kaikōura, the
Flax Hills Forever Forest project
is regenerating 69 hectares
of retired grazing land and is
recognised by the New Zealand
Emissions Trading Scheme.
CarbonClick Chief Executive Officer
Dave Rouse says the partnership
“sets an example for the sector,
and in doing so makes a tangible,
positive impact on the planet”.
CASE
STUDY
Flax Hills Forever Forest
Kathmandu’s digital
IDs debut
CASE
STUDY
In May 2023, Kathmandu proudly
launched an innovative new
product with a groundbreaking
addition – a unique Digital ID.
Kathmandu’s Heli R jacket – which
uses 100% recycled materials
everywhere possible, including face,
liner and zipper fabrics, trims and
labels – was the perfect product
to start our Digital ID journey.
A Digital ID is sewn into every
Kathmandu Heli R product.
Customers can use their smartphone
to scan their jacket’s stitched-in
QR code to discover its unique
sustainability story. They can
learn more about the product’s
design and manufacturing process,
the factory it was made in, the
materials used to make it, repair
information and, eventually, resale
and recycle recommendations.
Kathmandu’s launch of Digital IDs
is the first in Australia and New
Zealand, and follows a region-
leading partnership with global
technology platform EON.
EON’s technology, which is leveraged
by some of the apparel industry’s
largest brands, is helping Kathmandu
to bridge the gap between the
digital and physical worlds.
Speaking to Ragtrader, Kathmandu’s
General Manager of Product, Robert
Fry, said partnering with EON “is
an innovative step towards our
circularity ambitions, helping shift
customer mindset to think circular”.
Our launch of Digital IDs strengthens
Kathmandu’s digital capabilities
as we connect and communicate
with our customers in new ways.
Our elevated digital offerings will
help us to harness data-driven
insights that enhance customer
expectations, build traceability into
every product, drive efficiencies and
support even more innovation.
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Club Rip Curl launch
CASE
STUDY
Club Rip Curl is building
the world's largest surfing
community with a membership
program that rewards customers
for doing what they love best
– being one with the waves.
Launched in 2022, Club Rip Curl
connects and rewards people with a
passion for all things surf. Members
of the club can earn rewards from
purchases and catching a wave.
Customers with a Rip Curl SearchGPS
Surf Watch can upload their data to
the app on waves caught, top speed
and distance to earn points. Points
are able to be spent on products,
and as the program evolves, can be
donated to initiatives that protect
the environment through Rip
Curl’s partnership with SurfAid.
Our world-first pilot program at
five stores last year was expanded
to 77 stores, including online, in
Australia and New Zealand in
FY23. The rollout will continue
in USA and Canada next year.
Club Rip Curl has attracted
more than 220,000 members
so far and is responsible for a
growing proportion of sales.
Connecting all customer data in
one ecosystem elevates our digital
offering and creates an end-to-
end surfing experience. Club Rip
Curl will help us uncover fresh
data-driven insights, create new
synergies and economies of scale,
and, best of all, deliver even better
experiences for Rip Curl customers.
Riding the digital wave
CASE
STUDY
In March 2023 we hosted
the world’s first digital surf
competition. We teamed up with
Tourism Fiji to present the Rip
Curl Virtual Pro competition
from 4 to 14 March. Everyone
with a Rip Curl SearchGPS watch
that tracked their surfing over
the 10-day period was eligible
to enter the competition to win
the ultimate surfing holiday on
Fiji’s beautiful Namotu Island.
The Rip Curl SearchGPS watch,
which we launched in 2014, has
recorded more than 50,000 surfers
across 76 countries, recording 25
million waves at 2,400 beaches.
Every time competitors surfed, we
analysed the data from their Rip
Curl SearchGPS and scored it in
real time. Our unique algorithm
assessed the distance paddled,
surf time, total waves surfed, top
speed, longest waves and number
of surfs, and allocated bonus points
for surfing in a new location.
The winner? A Copacabana Beach
local in New South Wales, Australia,
who caught 126 waves in 10 surfs,
spent nearly 12 hours in the water and
paddled an impressive 37 kilometres.
The data sets created by each
contestant formed the foundation
for a unique video visualisation
that they could download and
share – and every surfer found a
story behind their data. Take pro
Australian surfer Owen Wright, who
was at Bells Beach training for the
last competitive surfing event of
his career. With a wavelength of
166 metres, and a wave speed of
35 kilometres an hour across two
locations, Owen gained an impressive
5,183 points and a special story to
share with his social followers.
The Rip Curl Virtual Pro competition
is “another display of leadership
in a rapidly changing surfing
landscape,” says Rip Curl’s Head
of Brand and Marketing, James
Taylor, and demonstrates our
commitment to create digital
experiences that are just as exciting
as catching the next wave.
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E-commerce exceeds
expectations
Growing forests and
online communities
CASE
STUDY
CASE
STUDY
Since Oboz officially launched
a direct-to-consumer online
offering in 2022 it has
outperformed our expectations.
We are on track to meet
our goal of 10% direct-to-
consumer sales by 2026.
Our e-commerce site has been
designed to drive conversion and
complements the Oboz brand
experience on site, where customers
Oboz customers don’t need
encouragement to enjoy the
outdoors. But we gave them
an extra incentive in May
2023 when we launched the
inaugural Fast Trail Challenge.
For 10 days in May, Oboz challenged
hikers, runners and people using
mobility devices to take to the trail.
Competitors tracked their hikes with
the help of GPS technology, and for
every hike that was more than a mile
long, we planted a tree. For further
bragging rights, we planted bonus
trees when competitors completed
their 11th and 12th hike within the
allotted time.
“We have planted more than five
million trees and we are on a mission
to plant five million more,” says Oboz
can learn more about the products
they love.
Our agile e-commerce team has
embraced a ‘test and learn’
approach which allows us to make
small adjustments to our online
marketing to convert browsers into
buyers, and to showcase the range
of Oboz products to new customers.
This year we launched the Oboz
Shoe Finder to help online shoppers
pick the perfect pair of boots, shoes
President Amy Beck. “We hope that
the Fast Trail Challenge will inspire
more people to get out and get
moving and help us achieve our goal.”
The first Fast Trail Challenge certainly
hit the target. The 1,072 hikers who
took part hailed from 17 countries
around the world, from Mexico to
Mongolia, Switzerland to the Solomon
Islands. Participants hiked a
combined 16,119 miles, or nearly
26,000 kilometres, across 5,019 hikes.
Their efforts were rewarded with
5,403 trees planted on their behalf.
The gamified experience created a
healthy sense of competition and
helped us to engage our community
of hikers across new digital platforms.
Challenge participants connected
through our social media channels,
or sandals for their next outdoor
adventure. After answering seven
questions, customers receive a
personalised list of recommended
hiking boots and shoes, winter boots
and sandals.
The Oboz Shoe Finder helps us
maintain our reputation for great
‘out of the box fit’. Oboz customers
agree – with a return rate of less
than 20% positive proof that our
digital platform is helping them
choose the perfect fit.
sharing their hiking stories and
cheering on their fellow competitors.
Oboz is growing its online community
as quickly as its Tanzanian forest
gardens. We followed up the Fast Trail
Challenge with the Oboz Trail
Experience. This year, 10-plus
regional events across the United
States saw participants take on new
or lesser-known local trails to push
their limits, log their achievements
online and celebrate their successes
with a community of people that are
True to the Trail.
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OPERATIONAL EXCELLENCE
Metrics that matter
How we leverage operational excellence
MATERIAL ISSUES: GLOBAL ECONOMY • GEOPOLITICAL LANDSCAPE • SUPPLY CHAIN RESILIENCE • CHANGE MANAGEMENT
• PEOPLE AND WELLBEING • CLIMATE CHANGE • DIGITAL TRANSFORMATION
OUR OBSERVATIONS
To support the growth of our global
brands, we are leveraging the
synergies within our Group through
shared knowledge and collaboration.
We achieve this through programs
that accelerate cross-brand
opportunities that optimise our
supply chain, invest in core system
upgrades and collaborate on product
innovation. This year, continued
inflationary pressures and supply
chain challenges have made these
efforts even more important.
An emerging industry-wide issue
for FY23 is excess finished goods
inventory, both within our businesses
and those of our competitors. For us,
this ties up working capital, leads to
escalated storage costs and creates
the risk that inventory will become
outdated and therefore harder to sell.
High levels of excess inventory held
by our competitors have encouraged
aggressive discount pricing
strategies in some key markets.
We have observed an increase
in health and safety incident
reporting in FY23, reflecting greater
awareness and compliance among
employees. This positive trend
demonstrates employees’ increased
recognition of potential hazards
and incidents, contributing to
safer work environments overall.
However, the rise in injuries
can also be partly attributed to
increased inventory and therefore
an increase in manual handling
risks and consequent injuries. In
response, we are strengthening
training and ergonomic measures to
mitigate risks. Additionally, we have
observed an increase in customer
aggression in store towards our
retail employees. This emphasises
the need for comprehensive training
programs that foster respect
and understanding among both
employees and customers. We
remain committed to maintaining
safe and harmonious workplaces
while delivering exceptional
service to our valued customers.
The impacts of COVID-19 continue
to affect our business, even though
the key risks of the pandemic have
passed. Post FY22 and COVID-
induced factory closures, we
have observed our manufacturer
suppliers rapidly scaling to return
to full operating capacity. This
created a new issue, with some
new suppliers falling short of our
quality assurance standards. This
was largely due to process failures
around training and upskilling of
workers as factories came back
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Underlying EBTIDA margin
1

9.6% of sales
Gross margin
59.1%
Increase of 20 basis points
(0.2% of sales)
Short-term working capital
19.9% of sales
1. The impacts of IFRS 16 leases and restructuring are excluded
from Underlying EBITDA. Refer to Appendix 1 of the FY23 Results
Presentation for a reconciliation of Statutory to Underlying results.

online. This required product re-work
and additional inspection times on
receiving goods, which impacted
the on-time delivery of key stock.
OUR ACTIONS
In response to the prevailing global
economic conditions, our focus in
FY23 has been on opportunities
that enhance and optimise the
underlying operational and financial
performance of the Group. With a
keen eye on efficiently managing
costs and maximising productivity,
we embarked on strategic initiatives
to drive our EBITDA margin.
One of our key steps was to explore
opportunities to consolidate our
suppliers and streamline the network
to improve efficiency and cost-
effectiveness. Additionally, we made
a concerted effort to reduce the
number of styles and Stock Keeping
Units (SKUs) to streamline inventory
management and improve margins.
In line with global markets, container
freight costs fell substantially.
To preserve and enhance profitability,
we strategically considered the depth
of discounting, ensuring that we
balance the needs of our customers
while maintaining healthy margins.
In line with this approach, we also
moderated our marketing spend,
carefully optimising our expenditures
to effectively maintain our brand
presence and customer outreach.
During FY23, our owned and
operated wetsuit manufacturing
facility, OnSmooth Thai, became
B Corp certified. The facility also
achieved International Safety
Standard (ISO) 14001:2015 and
ISO 45001:2018 certification for
Environmental and Occupational
Health and Safety Management
Systems, which demonstrates
high standards of environmental
sustainability and workplace safety.
We continue to work towards ISO
45001 for the wider group.
We achieved a step-change
in inventory management for
Kathmandu during the reporting
period with new, enduring processes
to streamline inventory levels for
the future. Inventory levels for both
Rip Curl and Oboz are moderating,
following investment in greater
holdings in the wetsuit categories
and key Oboz product lines. Record
demand for these products last
year has since softened, leaving
us with higher inventory levels
than expected. We have a steady
path planned for our holdings in
these inventory categories, which
can be held and sold efficiently.
With the softening of consumer
demand, particularly for wetsuits,
we have reviewed our workforce
structures across some business
units, particularly the requirements
for wetsuit production in line with
forward orders, to ensure we drive
operational and labour efficiency.
Reducing our workforce is not a
decision we make lightly but is a
necessary step to rightsize our
business in line with future demand
planning requirements. In making
decisions like these, as a B Corp, we
consider the impacts of our decision
on all stakeholders, including the
long-term profitability and needs
of the business and the impacts on
employees, both those whose roles
are no longer needed and the wider
impacts on the people remaining.
We support any employees whose
positions are no longer required with
Employee Assistance Program (EAP)
support beyond their final day of
employment, additional payments
over and above those required by
law, such as pay in lieu of notice and
13th month salary and full payout
of provident fund (where relevant)
to all employees regardless of
eligibility. Making these decisions
is never easy for any business but
it is important we revisit workforce
requirements to provide a stable
foundation for future growth.
We continue to actively manage
our property portfolio growing
our portfolio by 11 stores to 327
owned stores. We closely scrutinise
underperforming stores, including
in some locations rebranding within
the portfolio to optimise financial
performance. We continue to
monitor that any new stores do not
cannibalise sales from the existing
store network or other channels
and drive earnings growth overall.
Leveraging the scale of our store
portfolio and infrastructure enables
us to efficiently manage fixed costs,
including for new market expansion
in the medium term. Additionally,
by pooling our brand spend we
can unlock substantial production
savings. Managing leases at a Group
level allows us to negotiate more
favourable terms, leading to cost
savings and improving flexibility.
Leveraging our purchasing power,
both in terms of inventory and non-
inventory items, enables us to achieve
better deals and economies of scale.
Our Group legal team has been
reshaped during the reporting period
to form a solid support function to
assist all our brands globally. During
the reporting period there were
no instances of significant non-
compliance with laws or regulations
across the Group. There was one
fine (compared with none in 2022)
with a total monetary value of USD
$2,270 (NZD $3,720) for instances of
non-compliance with laws relating
to an instance of mislabelled pricing
under the Weights and Measures
requirements of the City of Santa
Monica, California. KMD Brands
defines a significant instance of
non-compliance to be a fine or
sanction of $1 million or more.
Throughout FY23, these strategic
actions were driven by our
commitment to strengthen the
Group's financial performance and
ensure sustainable growth amid
challenging economic conditions. We
remained agile and forward-thinking,
positioning ourselves for success
in an ever-evolving landscape.
GRI 2-27, 401, 403, 404
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CHALLENGES AND
OPPORTUNITIES AHEAD
Looking ahead, a multitude of short,
medium and long-term opportunities
can support growth and efficiency
across our organisation and
improve our working capital. In the
short term, our focus is on supply
chain efficiency in distribution and
sourcing. We will also continue to
optimise supply chain logistics by
aligning our factories across brands
to achieve significant gross margin
benefits. We will look at a greater
mix of origin third party logistics
suppliers in our supply chain.
We will continue geographic
diversification of our supplier
factories to reduce concentration
risk and supply chain disruptions.
This approach spreads reliance
across different regions, reducing
the impact of localised challenges
such as natural disasters or
geopolitical conflicts.
Recognising the significant risk
and challenge of climate change,
we are committed to working
with partners that proactively
adopt technologies to reduce the
emissions in our supply chain.
When considering new suppliers
of services for the Group, we will
seek information from potential
partners about their use of emerging
technologies to reduce operational
COMMERCIALSYSTEMSFINANCE
PEOPLELEGALESG
Localising impact,
maximising change
CASE
STUDY
An equitable, inclusive workplace
that represents the diversity of
our communities and amplifies
their professional development...
This is KMD Brands’
commitment to our people.
We continue to invest in training
and experiences that reinforce our
commitments. With teams across
multiple time zones and speaking a
multitude of languages, we are always
looking for creative ways to localise
our efforts to maximise our impact.
This year, the KMD Brands People
team worked on consolidating best
practice training and development
that already existed at a brand
level. This included consolidating
Kathmandu, Rip Curl and Oboz onto
the same Learning Management
System, RedSeed, globally in May.
Giving all our employees access to
a single learning and development
platform will ensure ongoing
consistency of the employee
development experience at KMD
Brands. On top of this, Kathmandu
and Oboz employees were given
access to a full course content
library that was previously only
accessible to Rip Curl employees.
To complement the courses offered
through RedSeed, employees
embraced a wide range of training
opportunities conducted by external
experts with the aim to educate
and upskill, from leadership to
corporate governance, media
and presentation skills to digital
marketing, cyber security to
environmental and social governance,
financial literacy, copyright, safe
driving, and much more.
The wellbeing of our people,
diversity and inclusion, and
ESG are key focus areas of
our strategy, so we conducted
targeted training in these areas.
We used internal experts to
train our people on climate and
the Science-Based Targets
initiative, greenwashing, employee
entitlements, discrimination,
bullying, diversity and inclusion,
and safety awareness and mental
health in the workplace.
In Australia, we complemented
internal training on our Reconciliation
Action Plan and our journey to
reconciliation, with celebrations
for NAIDOC Week to honour the
history, culture and achievements
of Aboriginal and Torres Strait
Islander peoples. We were joined by
proud Adnyamathanha woman and
Aboriginal entrepreneur, Marsha
Uppill, who shared stories and
reflected on the NAIDOC theme
‘For Our Elders’. All ANZ employees
were invited, with many of our New
Zealand based team joining to gain
an understanding of their Australian
colleagues’ cultural history.
In the United States, Oboz partnered
with the Continental Divide Trail
Coalition, one of the country’s largest
conservation efforts, to host half-day
training with equity, diversity and
inclusion strategist Parker McMullen
Bushman. Our people and partners
gained powerful insights from Parker
as she used her personal experiences
to unpack the unequal representation
of people of colour in outdoor spaces.
KMD Brands partnered with
LGBTQI+ youth charity Minus18
to mark International Day
Against Homophobia, Biphobia
and Transphobia (IDAHOBIT).
Employees across Australia,
New Zealand and North America
gathered virtually to learn how they
Continued overleaf...
costs, reduce emissions and
enhance the resilience of systems.
In FY24 we will revise our buying
timelines and enhance our demand
planning processes. Our refined
buying policies will concentrate
on the depth of core styles while
offering a tighter breadth of products,
ultimately reducing inventory and
bolstering trade payments.
OUR GROUP FUNCTIONS
Our shared Group support functions provide centres of excellence, implement common platforms
and leverage scale across our brands.
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could be active allies. Oboz also
extended this invite to third-party
sales representatives of the brand,
who were keen to gain a better
understanding of gender inclusivity.
Kathmandu recognised Mental
Health Awareness Month in October,
working with not-for-profit partner
Beyond Blue to deliver a presentation
to help people recognise if they
are experiencing mental health
challenges. Rip Curl ran a series of
Localising impact,
maximising change continued
CASE
STUDY
educational sessions with a mental
health advocate in September and
also recognised R U Okay Day. Mental
health advocate Matt Runnalls was
our guest speaker at two education
sessions, during which he shared his
lived experience and encouraged
others to manage their wellbeing.
Kathmandu was also recognised by
Mental Health First Aid Australia as a
‘Skilled’ workplace, with accreditation
that acknowledges the brand’s
efforts to train 60-plus employees
to act as mental health first-aiders in
Australia. As part of this accreditation,
Kathmandu implemented eight
wellbeing initiatives including a
mental health first aid policy.
As the KMD Brands People
team continues to consolidate
and streamline efforts, we hope
to extend our efforts to reach
more employees each year.
GRI 404
PERFORMANCE REVIEWS COMPLETED FOR FY23
CategoryMaleFemaleAnother genderTotal
Group executive 100%100%N/A100%
Brand executive 100%100%N/A100%
Senior management 65%70%N/A67%
Management 92%98%100%95%
Non-management 82%80%69%81%
TOTAL 83%82%69%80%
A proactive, people-centred
health and safety culture
CASE
STUDY
The health and safety of
our team is a top priority,
which is why our People
team spent the year auditing
and updating our processes,
procedures and policies to
enhance our safety culture.
We introduced new systems to
ensure our people and customers
stay safe and healthy. When incidents
do occur, we have processes in place
to learn, reflect and prevent these
incidents from happening again.
All new employees complete an
induction module and on-site safety
walk-through upon commencement.
Rip Curl uses the SafetyCulture
app to report hazards, This enables
us to capture consistent data and
identify areas where we can improve.
Kathmandu uses the Noggin platform.
The earlier an employee can return
to work, the faster their recovery.
Most people who have been injured
in our workplaces have returned
in a timely manner, thanks to the
structured processes that support
their return to work. These processes
include immediate response, medical
attention and incident management;
we equip the employee with
information about their injury to
share with their doctor, and work with
them to determine potential work
modifications when they return.
Expanding on Kathmandu’s well-
established process, we have
introduced a quarterly group safety
governance meeting, during which
time a group of employees unpack
each incident or injury and look
for ways to improve. The Health
and Safety team complete monthly
meetings with regional managers
to ensure timeliness of hazard
identification and risk assessments.
We regularly audit our sites for safety,
but as we strengthen our processes,
we have introduced a formal tracking
system. In FY23 we completed 23
audits across Australia, New Zealand,
North America and Brazil for health
and safety regulatory compliance.
We had 168 cases of recordable
work-related injuries during the year,
up from 157 cases in the prior fiscal
year. The main types of work related
injuries are contusions, burns, cuts,
sprains, slips, strains, and soft tissue
injury. Out of these, four cases (2022:
two cases) were high-consequence
requiring the employee to take
more than six months to recover.
We had two cases (2022: 0 cases)
of work-related ill-health, where
the employee took more than six
months to recover. These cases were
related to arthritis and anxiety and
identified through incident reports.
The increase in work-related
injury reporting is a result of our
encouragement of employees to
report incidents when they do occur.
We had no incidents of non-
compliance with regulations
or voluntary codes resulting in
a fine, penalty or warning. We
had no instances of fatalities
from work-related ill-health or
injury. We recorded 43 customer
injuries, two near misses, and
seven medical episodes.
TRAINING HOURS IN FY23
Average hours of online training
per employee*
Male 4 hours
Female 4.4 hours
Another gender 3.3 hours
* Based on training modules completed
through RedSeed learning platform
2110
additional training hours
delivered in person*
* Participant attendance is determined by
accepted calendar invitations or attendance
record. Total training hours calculated based
on average training session length of 1 hour
55
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 202354
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS

Best in class banking
CASE
STUDY
Sustainable and streamlined –
these are the principles that have
uncovered millions in savings for
KMD Brands this financial year.
Our commitment to operational
excellence means we are always
looking to streamline the way we
work. Across the Group globally we
had 30 different banking relationships
to manage our transactional banking
and merchant acquiring. With a
view to streamline relationships,
drive consistency and obtain better
pricing, a treasury project team was
formed to assess, review and tender
our relationships globally. A global
banking tender and change has many
complexities, but we quickly realised
the size of the prize was significant.
“A global business needs a global
bank”, says Group CFO, Chris Kinraid.
After gauging the market for interest,
we reduced the number of banks we
partner with from 30 to two: ANZ in
Australasia and HSBC globally. This
will deliver a cost saving of around
NZD$1 million each year, strengthen
and simplify our reporting and
data analysis, and give us access
to best-in-class technology.
Our analysis also found significant
cost savings by consolidating our
fragmented merchant acquiring
relationships across Australia
and New Zealand. With one bank
appointed in each region now our
preference, we are looking to save
NZ$1.5 million over three years and
offer leading point of sale technology
for our customers. This consolidation
will also save our team time that we
can spend on projects to strengthen
our business and deliver better
experiences to our customers.
This year, we also successfully closed
a NZ$310 million debt refinancing
deal tied to sustainability. This builds
on KMD Brands’ first sustainability
linked loan, which we secured in 2021.
With the new transactional banking
relationships in place the Group can
more aggressively pool cash globally
and reduce working capital debt.
Tying this loan to our unique
environmental, social and governance
(ESG) targets acts as an additional
financial incentive. If we hit our ESG
targets – which include reducing
our emissions, maintaining our B
Corp Certification and improving
supply chain transparency – the
interest rate on the loan decreases.
The dollar value of meeting the
targets tied to the loan is just one
benefit. By making ESG a key pillar
of our Group strategy, we reduce our
financial and regulatory risks, drive
value for our business today and
protect people and planet tomorrow.
Other health and safety training
we provide our workers include:
• Loss prevention training (includes
deescalation with customers)
• Manual handling training
• First aid training
• Emergency warden training
• Mental health first aid training
• Manager and supervisor
awareness training.
We know mental health is just as
important as physical health. This
year 32 employees in Australia and
New Zealand were trained as mental
health first aid officers, and we plan
to expand the training globally.
Our brands also delivered targeted
training and wellbeing sessions to
their people. Oboz hosted stress
management classes and hired a
wellness coach. Rip Curl Europe
used World Mental Health Day as
a chance to share information and
insights about good mental health.
Kathmandu and Rip Curl ANZ took
part in a webinar with sport scientists
who explored evidence-based tools
to help people thrive through life.
We also rolled out a global employee
assistance program across our
brands. Converge International
helps us provide access to legal
advice, counselling, personal and
work-related issues, nutrition and
more. All full-time and part-time
employees, and their immediate
families, have access to Converge,
and can use the app to monitor
their health goals and progress.
With a commitment to continuous
improvement, proactive systems
and a culture of care, we strive for
operational excellence that delivers
safe and healthy workplaces.
GRI 403, 416
57
ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES
KMD Brands Annual Integrated Report 202356
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS

KMD Brands ESG Strategy
OUR VISION is to be the leading family of global outdoor brands – designed for purpose, driven by
innovation, best for people and planet.
LEAD IN ESG
OUR FOCUS AREAS
In this section, we report on our overall impact on society and the environment, within the context of our strategic
objective to Lead in ESG. This section is structured to align with the KMD Brands ESG Strategy and is organised
around our 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 PILLARS
Positively impact the wellbeing
of people and places touched
by our brands
Eliminate the linear take-make-
waste approach to business
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.
Transition to a low carbon future
Reduce emissions in line with the
Paris Agreement goals.
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.
O U R TA R G E T SPROGRESS FOR FY23
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 effective 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.

PLANNING STAGE

SOME PROGRESS

ON TRACK

HIT A ROADBLOCK

NEARLY THERE

DELIVERED
SOME PROGRESS
PLANNING STAGE
PLANNING STAGE
ON TRACK
ON TRACK
ON TRACK
ON TRACK
SOME PROGRESS
SOME PROGRESS
SOME PROGRESS
Transition to a low carbon future
KMD Brands Annual Integrated Report 20235859
OUR JOURNEY LEADERSHIP & GOVERNANCE WHAT MATTERS MOST OUR STRATEGY BUILDING GLOBAL BRANDS ELEVATING DIGITAL OPERATIONAL EXCELLENCE LEAD IN ESG FINANCING OUR IMPACT ADDITIONAL DISCLOSURES