1H FY2026 Interim Results and Equity Raising

KMD BRANDS LIMITED W kmdbrands.com
Not for distribution or release in the United States

Tuesday 31 March 2026
(All amounts in NZ$ unless otherwise stated)

Next Level transformation delivers strong H1 for KMD Brands

KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) today announces its results for the
six months ended 31 January 2026 (“1H FY26”), and details relating to the Group’s approximately
$65.3 million fully underwritten equity raising and refinancing of its debt facilities.

1H FY26 financial summary (vs 1H FY25):

• Group sales up +7.3% to $505.4 million.
• Gross margin
3
down -1.2% of sales to 56.8%.
• Underlying operating expenses
1,3
up +2.4% to $275.6 million.
• Underlying EBITDA
1
$11.5 million, up +196.6% year-on-year (“YOY”).
• Statutory NPAT loss -$13.1 million. Underlying NPAT
1
loss -$11.5 million.
• Net Working Capital $179.2 million, -$13.4 million lower YOY.
• Net Debt $94.0 million, impacted by the weakening of the NZ dollar year-on-year.
• No interim dividend declared as a result of 1H FY26 operating performance.

Group financial performance

Statutory Underlying
1

NZ$ million
2
1H FY26 1H FY26 1H FY25 Var %
Sales 505.4 505.4 470.9 7.3%
Gross Profit
3
287.1 287.1 273.0 5.2%
Gross Margin
3
56.8% 56.8% 58.0%
Operating Expenses
3
(223.8) (275.6) (269.1) 2.4%
EBITDA 63.3 11.5 3.9 196.6%
EBIT (1.7) (6.4) (13.3) 52.1%
NPAT (13.1) (11.5) (16.1) 28.4%

Kathmandu has led the Group sales momentum in the first half, with total Group sales growth +7.3%
YOY. The sales result is underpinned by solid growth in both the direct-to-consumer (“DTC”) and
wholesale channels.


1
Excluding the impact of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships,
impairment and onerous contracts.
2
1H FY26 NZD/AUD conversion rate 0.881 (1H FY25 0.909), 1H FY26 NZD/USD conversion rate 0.581 (1H FY25 0.595).
3
Prior period restatement: following an accounting system change at the Group’s wetsuit manufacturer, $2.5m of 1H FY25 production
labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s 1H FY25 EBITDA or net profit.

KMD BRANDS LIMITED W kmdbrands.com
Gross margin decreased by -1.2% of sales below last year to 56.8%. In a promotional marketplace,
the brands balanced sales growth with gross margin achievement, while optimising inventory
composition and selling through aged inventory.

Underlying operating expenses were lower than last year on a constant currency basis, with a Next
Level cost reset helping to offset strategic growth investments and continued global cost pressure.

Rip Curl

Rip Curl Underlying
1

NZ$ million 1H FY26 1H FY25 Var %
Sales 291.4 278.5 4.6%
EBITDA 20.5 23.6 (13.0%)
EBIT 10.5 16.1 (34.3%)

Rip Curl total sales increased by +4.6% to $291.4 million, helped by the YOY movement in FX rates
used to convert global sales to NZD reporting currency. On a constant currency basis, Rip Curl total
sales were +0.3% above the first half of last year.

Wholesale sales increased by +9.8% YOY, supported by strong demand in Europe and North
America.

DTC total sales (including online) increased by +1.9%, with strong sales for North America offsetting a
challenging market during the southern hemisphere peak summer period. Online sales increased by
+6.7% to $22.5 million, comprising 12.0% of DTC sales.

DTC same store sales (comprising owned retail stores and online)
4
increased +1.5% YOY.

Gross margin decreased by -1.2% of sales, impacted by wholesale channel mix and elevated
promotional activity. Underlying operating expenses were in line with last year on a constant currency
basis, with a strategic cost reset helping to offset strategic growth investments and continued global
cost pressures.

Kathmandu

Kathmandu Underlying
1

NZ$ million 1H FY26 1H FY25 Var %
Sales 176.1 156.8 12.3%
EBITDA (2.4) (12.8) 81.6%
EBIT (10.2) (22.0) 53.9%

Kathmandu total sales increased by +12.3% to $176.1 million, despite a net reduction of four stores
YOY. Kathmandu showed strong sales momentum throughout the first half, and improved from +2.5%
YOY in the fourth quarter of last year.

Strong sales results were achieved in both Australia
5
(+10.2% YOY) and New Zealand (+8.9% YOY).


4
Same store sales are for the 27 full weeks ended 1 February 2026 and are measured at constant exchange rates.
5
At constant exchange rates.

KMD BRANDS LIMITED W kmdbrands.com
Sales growth continued through the second quarter, with the key Black Friday and Christmas trading
periods cycling a good result last year.

Online sales were in line with last year (cycling strong growth) at $20.6 million, comprising 11.8% of
DTC sales.

Same store sales (including online)
4
increased by +12.8% YOY.

Gross margin decreased by -1.5% of sales, with a focus on selling through aged inventory in the first
quarter, and maintaining competitive promotional intensity through the second quarter. Total inventory
ended 1H FY26 $9.8 million lower than last year ($13.5 million lower at constant currency).
Underlying operating expenses reduced YOY, improving operating leverage following a strategic cost
reset and ongoing cost discipline.

Oboz

Oboz Underlying
1

NZ$ million 1H FY26 1H FY25 Var %
Sales 38.0 35.6 6.5%
EBITDA (1.1) (2.2) 52.5%
EBIT (1.1) (2.6) 59.5%

Total sales increased by +6.5% YOY to $38.0 million.

Online sales increased by +0.9%, impacted by lower closeout inventory levels YOY. In the second
half, the website will move onto the group online trading platform. Digital marketing continues to be
refined with new agency partners through an updated digital funnel strategy and fresh creative.

Wholesale sales increased by +7.5% with strong in-season buying from key accounts.

Gross margin remained stable, improving +0.2% of sales despite tariff impacts, supported by lower
closeout activity YOY.

Underlying operating expenses were tightly controlled and lower than last year.

Balance sheet

Net working capital remains a key focus for the Group, ending the first half -$13.4 million lower than
31 January 2025. The Group inventory balance reduced for the third successive year, decreasing by -
$29.6 million YOY, with a continued focus by all brands to optimise mix and sell through aged
inventory.

At 31 January 2026 the Group had a net debt position of $94.0 million, impacted by $5.6 million with
the weakening of the NZ dollar year-on-year. The Group complies with all amended bank covenants
at 31 January 2026.

Refinance

On 30 January 2026 the Group extended its existing debt facility term and adjusted the fixed charge
cover ratio for the July 2026 and January 2027 measurement periods.

KMD BRANDS LIMITED W kmdbrands.com
The Group also reduced its total syndicated bank facilities by $49 million to approximately $283
million, consisting of an A$207 million and NZ$43 million multi-currency revolving facility.

As part of a longer-term refinance plan, the Group has now secured a refinanced debt facility,
provided by a majority of our existing banking syndicate for a new multi-year bank debt facility with an
approximately NZ$205 million
6
capacity. The refinanced facility provides KMD with a stable, long-term
capital structure that, in combination with the proceeds from the equity raising, is expected to provide
sufficient liquidity to execute on the Next Level transformation and fund working capital requirements.
The new facility term of up to 2.5 years provides the Group with funding stability through to 1 October
2028, removing near-term refinancing pressures and allowing management to remain focused on
strategic execution and delivery of shareholder value.

The refinanced facility structure includes fixed charge cover ratio and leverage covenant
arrangements for the Group over the term of the facility. The facility provides KMD with operational
flexibility as it continues to execute its strategy and further reduce leverage over the longer-term to a
ratio of <0.5x Net Debt / EBITDA.

In connection with the refinance, KMD is undertaking an equity raise, as described in more detail
below.

Trading update

Direct-to-consumer same store sales (including online) for the first six full weeks of the second half
from Monday 2 February to Sunday 15 March 2026
7
in a seasonally non-significant trading period:
• Kathmandu +11.1% YOY, combined with gross margin improvement YOY of c. +50 basis points
(+0.5% of sales).
• Rip Curl +1.2% YOY.

Outlook

Given early momentum in its Next Level turnaround strategy and despite a challenging global
consumer operating environment, the Group remains focused on delivering continued performance
improvement compared to prior year.

Kathmandu continued its recent sales momentum in the first 6 weeks of 2H FY26, with the key
Autumn and Winter trading periods still to come. Kathmandu are also on track to achieve gross
margin expansion YOY in 2H FY26, with consumers responding positively to improved product flow
and assortment.

Rip Curl and Oboz wholesale order books for 2H FY26 are in line with last year, with the Europe and
North America summer season to come. Gross margin expansion is anticipated YOY in 2H FY26,
reflecting actions taken to offset the US tariffs, and cycling specific clearance of inventory in the
second half of last year.

Group underlying operating expenses
1
as a % of sales are forecasted to improve YOY, showing
progress towards mid-term targets. Underlying operating expenses
1
for the full year are planned to be
broadly flat YOY on a constant currency basis (before any FY26 management incentives). The year-
on-year impact of global currency fluctuation is expected to have a significant impact on underlying

6
Based on NZD / AUD exchange rate published by RBNZ as at 24 March 2026 and net offer proceeds of $62m. A$8.5m of the facility will
be unavailable until key covenant milestones met.
7
Sales and gross profit results for the six full trading weeks from Monday 2 February to Sunday 15 March 2026 are sourced from BI reports
and measured at constant currency YOY.

KMD BRANDS LIMITED W kmdbrands.com
operating expenses (1H FY26 half-year impact $9.1 million as shown in the appendices of the full
Investor Presentation accompanying this announcement). The Group remains on track to achieve its
Next Level strategic cost reset savings, helping to offset cost inflation, and deliver moderated re-
investment to drive Next Level strategic growth opportunities.

KMD Brands expects to deliver further EBITDA margin expansion in FY26.

The Group continues to focus on the optimisation of its store network as part of the Next Level
integrated marketplace strategy. Capital expenditure for FY26 is targeted to be at the lower end of the
guided range (approximately $25 million).

KMD Brands continues to target a leverage ratio of <0.5x Net Debt / EBITDA by end of FY27.

Brent Scrimshaw, Group CEO and Managing Director, KMD Brands, said:

“Since launching our Next Level strategy, we have accelerated the pace and quality of execution and
returned each of our brands to growth in a short timeframe. Strong early progress has been made
against our key initiatives, giving us further conviction in our potential.”

“We’re particularly encouraged by the improved performance of Kathmandu, which has delivered
double-digit same store sales growth for the first time in over two years. It’s also pleasing to see
consumers responding positively to our accelerated product freshness, flow and assortment, along
with a renewed focus on innovation.”

“While Rip Curl has navigated more volatile global trading conditions, we remain confident that the
brand’s repositioning will drive long-term growth and youthful energy, connected to the next
generation of core surf and beach consumers.”

David Kirk, Chairman, KMD Brands, said:

“Over the last 6 months, the refreshed KMD Brands leadership team has delivered against the clear
objectives laid out in the Next Level strategy, including driving an inflection in growth at each of our
core brands and overdelivering on cost savings targets.”

“After securing a short-term extension to our debt facilities in January 2026, it was important for our
continued execution to strengthen our balance sheet, accelerate our path to our leverage target, and
secure a longer-term debt facility to support our ongoing transformation.”

“With the balance sheet now strengthened through the debt refinancing and the launch of the equity
raise, KMD Brands is well positioned to continue executing its Next Level strategy. Having worked
closely with the Board and management through this critical phase, and been on the Board for 13
years, I believe this is the right time to signal my intention to step down as Chairman in the coming
months. The Board has commenced an orderly succession process.”

Equity raising details

KMD today announces an approximately $65.3 million fully underwritten equity raising (“Offer”),
comprising:
• a fully underwritten placement (“Placement”) of new fully paid ordinary shares (“New Shares”)
to eligible institutional shareholders and new institutional investors to raise approximately $6.8
million; and

KMD BRANDS LIMITED W kmdbrands.com
• a fully underwritten 1 for 0.73 pro-rata accelerated renounceable entitlement offer (“Entitlement
Offer”) of New Shares to eligible shareholders to raise approximately $58.5 million.

The Offer will be conducted at an offer price of NZ$0.06 per share (“Offer Price”), representing a:
• 47.1% discount to the theoretical ex-rights price (“TERP”)
8
of NZ$0.113; and
• 69.2% discount to KMD’s last traded price of NZ$0.195 on NZX on Wednesday, 25 March 2026.

Approximately 1,087.8 million New Shares are to be issued under the Offer, representing
approximately 152.8% of the existing shares on issue.

New Shares issued under the Offer will rank equally with existing fully paid ordinary shares from their
time of issue.

Goldman Sachs New Zealand Limited is acting as Arranger, and Goldman Sachs New Zealand
Limited and Forsyth Barr Limited are acting as Joint Lead Managers for the Offer. The Offer is fully
underwritten by Goldman Sachs New Zealand Limited and Forsyth Barr Group Limited.

Placement details

KMD is undertaking a fully underwritten Placement of New Shares to eligible institutional shareholders
and new institutional investors to raise approximately $6.8 million. The Placement will be conducted
concurrently with the Institutional Entitlement Offer (as described below).

Entitlement Offer details

KMD will invite eligible shareholders to subscribe for 1 New Share for every 0.73 existing KMD shares
held as at 7:00pm NZDT (5:00pm AEDT) on Wednesday, 1 April 2026 (“Record Date”). Eligible
shareholders can choose to take up all, part or none of their entitlement to New Shares. New Shares
not taken up by Eligible Shareholders (or attributable to ineligible shareholders) will be offered for sale
through Bookbuilds run by the Joint Lead Managers.

Institutional Entitlement Offer
Eligible institutional shareholders will be invited to participate in the accelerated institutional
component of the Entitlement Offer (“Institutional Entitlement Offer”), which is being conducted
today (Tuesday, 31 March 2026) and closes on Wednesday, 1 April 2026
9
, along with the Placement.
Under the Institutional Entitlement Offer, eligible institutional shareholders can choose to take up all,
part or none of their entitlement to New Shares.

Institutional entitlements that are not taken up, together with the entitlements of ineligible institutional
shareholders, will be offered for sale under an institutional shortfall bookbuild (“Institutional Shortfall
Bookbuild”) on Wednesday, 1 April 2026, with any premium above the Offer Price (net of any
applicable withholding taxes) paid to the relevant shareholders.

Retail Entitlement Offer

8
TERP is the theoretical price at which KMD shares trade immediately after the ex-date for the Offer. TERP is a theoretical calculation only
and the actual price at which KMD shares trade on NZX immediately after the ex-date for the Offer will depend on many factors and may not
be equal to TERP. TERP is calculated by reference to the last traded price of the KMD share price as traded on NZX on Wednesday, 25
March 2026 being the last trading day prior to the announcement of the Offer and includes all New Shares issued under the Placement and
Entitlement Offer.
9
The Placement and Institutional Entitlement Offer for Australian, New Zealand and certain investors in Asia-Pacific region closes on
Tuesday, 31 March 2026. For all other regions, the Placement and Institutional Entitlement Offer closes on Wednesday, 1 April 2026.

KMD BRANDS LIMITED W kmdbrands.com
The retail component of the Entitlement Offer (“Retail Entitlement Offer”) will be open from
Tuesday, 7 April 2026 to 5:00pm NZST (3:00pm AEST) on Thursday, 16 April 2026, to eligible retail
shareholders with an address recorded on KMD’s share register in New Zealand or Australia at the
Record Date. The entitlements will not be quoted on NZX or ASX.

Under the Retail Entitlement Offer, eligible retail shareholders may:

• elect to take-up all, part or none of their entitlement before the Retail Entitlement Offer closes at
5:00pm NZST (3:00pm AEST) on Thursday, 16 April 2026; or
• elect to take-up their entitlement in full and also apply for additional New Shares. Any application
for New Shares above their pro-rata entitlement will be included in the retail shortfall bookbuild
(“Retail Shortfall Bookbuild”) and made at the retail shortfall bookbuild clearing price; or
• do nothing in which case their entitlements will be offered for sale under the Retail Shortfall
Bookbuild.

Retail entitlements not taken up, along with entitlements of ineligible retail shareholders, will be
offered for sale under the Retail Shortfall Bookbuild to be conducted on or about Tuesday, 21 April
2026, with any premium above the Offer Price (net of any applicable withholding tax) paid to the
relevant shareholders.

Further details about the Retail Entitlement Offer are set out in the Offer Document.
Shareholders entitled to participate in the Retail Entitlement Offer should visit kmd.rightsoffer.co.nz
and apply online by 5:00pm NZST (3:00pm AEST) on Thursday, 16 April 2026.

Further information on the Offer is detailed below and is to be read in conjunction with the Offer
Document and the Investor Presentation which are available to eligible shareholders via the offer
website at kmd.rightsoffer.co.nz.

Investor briefing being held today at 8:30am AEDT / 10:30am NZDT

Brent Scrimshaw (Group CEO), and Carla Webb-Sear (Group CFO) will be holding a briefing session
for investors and analysts at 8:30am AEDT / 10:30am NZDT today (Tuesday, 31 March 2026).
Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmd1hfy26.

You may also dial one of the numbers below and provide the conference ID 1914594 to the operator
to listen to the meeting.

• Australia - Toll (Sydney) +61 2 8088 0946
• Australia - Toll Free +61 1800 571 226
• New Zealand - Toll Free +64800450012
• New Zealand - Auckland +64 9 887 4636
• USA & Canada - Toll-Free (800) 715-9871
• United Kingdom - Toll-Free +44 800 260 6466
• France - Toll-Free +33 801 238862
• Norway - National +47 57 98 94 30
• Spain - Toll-Free +34 800 906909

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

KMD BRANDS LIMITED W kmdbrands.com
This announcement has been authorised for release to NZX / ASX by Frances Blundell, Chief Legal &
ESG Officer and Company Secretary.

- ENDS -


For further information, whether an investor or media enquiry, please contact:
Frances Blundell, Chief Legal & ESG Officer and Company Secretary
companysecretary@kmdbrands.com

Appendix: Key offer dates
10


General
Announcement of Offer
Voluntary suspension continued on NZX and ASX
Tuesday, 31 March 2026
Record date for the Offer 7:00pm NZDT (5:00pm AEDT) Wednesday, 1 April
2026
Placement and Institutional Entitlement Offer
Placement and Institutional Entitlement Offer opens Tuesday, 31 March 2026
Placement and Institutional Entitlement Offer closes
11
Wednesday, 1 April 2026
Institutional Shortfall Bookbuild Wednesday, 1 April 2026
Trading recommences
KMD shares will commence trading on NZX and ASX
on an ex-entitlement basis
Thursday, 2 April 2026
ASX Settlement of New Shares under the Placement
and Institutional Entitlement Offer
Friday, 10 April 2026
ASX Allotment of New Shares under the Placement
and Institutional Entitlement Offer
Monday, 13 April 2026
NZX Settlement and Allotment of New Shares under
the Placement and Institutional Entitlement Offer
Monday, 13 April 2026
Commencement of trading of New Shares issued
under the Placement and Institutional Entitlement
Offer on NZX and ASX
Monday, 13 April 2026

10
The timetable presented is indicative only and subject to change without notice (subject to applicable laws and the NZX Listing Rules and
ASX Listing Rules). All dates and times refer to New Zealand Time (unless stated otherwise). KMD reserves the right to withdraw the Offer
at any time prior to the issue of the New Shares at its absolute discretion.
11
The Placement and Institutional Entitlement Offer for Australian, New Zealand and certain investors in the Asia-Pacific region closes on
Tuesday 31 March 2026. For all other regions, the Placement and Institutional Entitlement Offer closes on Wednesday, 1 April 2026.

KMD BRANDS LIMITED W kmdbrands.com
Retail Entitlement Offer
Record date
7:00pm NZDT (5:00pm AEDT) Wednesday, 1 April
2026
A$ Price announcement Thursday, 2 April 2026
Retail Entitlement Offer opens Tuesday, 7 April 2026
Retail Entitlement Offer closes
5:00pm NZST (3:00pm AEST) Thursday, 16 April
2026
Retail Shortfall Bookbuild (for Retail Entitlements not
taken up and Retail Entitlements of ineligible retail
shareholders)
Tuesday, 21 April 2026
ASX Settlement of New Shares under the Retail
Entitlement Offer
Monday, 27 April 2026
NZX Settlement and Allotment of New Shares under
the Retail Entitlement Offer
Tuesday, 28 April 2026
Commencement of trading of New Shares issued
under the Retail Entitlement Offer on NZX
Tuesday, 28 April 2026
Commencement of trading of New Shares issued
under the Retail Entitlement Offer on ASX
Wednesday, 29 April 2026
Despatch of holding statements in respect of New
Shares issued under the Retail Entitlement Offer
By Wednesday, 29 April 2026

Not an offer of securities in the United States
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any
securities in the United States or any other jurisdiction in which such an offer would be unlawful. The
entitlements and New Shares described in this announcement have not been, and will not be,
registered under the U.S. Securities Act of 1933 (“U.S. Securities Act”), or the securities laws of any
state or other jurisdiction of the United States. Accordingly, the entitlements may not be taken up or
exercised by, and the New Shares may not be offered or sold, directly or indirectly, in the United
States or to any person acting for the account or benefit of any person in the United States, except in
transactions exempt from, or not subject to, the registration requirements under the U.S. Securities
Act and any other applicable securities laws of any state or other jurisdiction of the United States.

---

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2
IMPORTANT NOTICE AND DISCLAIMER
This presentation has been prepared by KMD Brands Limited (KMD) in relation to an offer of new shares in KMD (New Shares) by way of a placement to eligible institutional and other selected investors (Placement) and a 1-for-0.73 pro rata renounceable accelerated entitlement offer to eligible
shareholders (Entitlement Offer, together with the Placement, the Offer).
The Offer is made to eligible shareholders and other investors in New Zealand pursuant to the exclusion in clause 19 of schedule 1 of the New Zealand Financial Markets Conduct Act 2013 (the FMCA).
The Offer is made to eligible shareholders and other investors in Australia in reliance on sections 708AA and 708A of the Australian Corporations Act 2001 (Cth) (Corporations Act), each as notionally modified by ASIC Corporations (Non-Traditional Rights Issue) Instrument 2016/84 and ASIC
Instrument 19-0895.
Information of a General Nature
This presentation contains summary information about KMD and its activities that is current as of the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may
require in evaluating a possible investment in KMD or that would be required in a product disclosure statement for the purposes of the FMCA or a prospectus or other disclosure document for the purposes of the Corporations Act or the laws of any other jurisdiction. KMD is subject to disclosure
obligations that require it to notify certain material information to NZX Limited (NZX) and ASX Limited (ASX). This presentation should be read in conjunction with KMD’s 1H FY26 Financial Statements, market releases and other periodic and continuous disclosure announcements released to NZX
and ASX, which are available at www.nzx.com and www.asx.com under the ticker code "KMD". No information set out in this presentation will form the basis of any contract.
NZX and ASX
The New Shares will be quoted on the NZX Main Board following completion of the Offer, and an application will be made by KMD for the New Shares to be quoted on the ASX. Neither NZX nor ASX accepts any responsibility for any statement in this presentation. NZX is a licensed market operator,
and the NZX Main Board is a licensed market under the FMCA. ASX operates a financial market licensed under the Corporations Act.
Not Financial Product Advice
This presentation does not constitute legal, financial, tax, accounting, financial product or investment advice, or a recommendation or inducement to acquire KMD's securities (including the New Shares), and has been prepared without taking into account the objectives, financial situation or needs of
individuals. Any investment decision should be made solely on the basis of investors’ own enquiries. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult a
financial advice provider, solicitor, accountant or other professional adviser if necessary. KMD is not licensed to provide financial product advice in respect to KMD’s securities.
Investment Risk
An investment in securities in KMD is subject to investment and other known and unknown risks, many of which are difficult to predict and are beyond the control of KMD. Refer to Section 5 "Key Risks" for a non-exhaustive summary of certain key risks associated with KMD and the Offer. Neither
KMD nor any other person named in this presentation guarantees the performance of KMD or any return on any securities of KMD. Cooling off rights do not apply to the acquisition of New Shares.
Not an Offer
This presentation is not a prospectus or product disclosure statement or other offering document under New Zealand or Australian law or any other law (and will not be filed with or approved by any regulatory authority in New Zealand, Australia or any other jurisdiction). This presentation is for
information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction.
Any decision to purchase New Shares in the Offer must be made on the basis of all information provided in relation to the Offer, including information to be contained or referred to in the separate offer document made available on NZX and ASX (Offer Document) and KMD's other periodic and
continuous disclosure announcements released to NZX and ASX. Any investor or eligible shareholder who wishes to participate in the Offer should consider the Offer Document, in addition to KMD’s other periodic and continuous disclosure announcements released to NZX and ASX, in deciding to
apply for New Shares under the Offer. Anyone who wishes to apply for New Shares under the Entitlement Offer will need to apply in accordance with the instructions contained in the Offer Document and the application form on the Offer website at kmd.rightsoffer.co.nz or as otherwise communicated
to shareholders. The release, publication or distribution of this presentation (including any electronic copy) outside New Zealand or Australia may be restricted by law. Any recipient of this presentation who is outside New Zealand or Australia must seek advice on and observe any such restrictions.
Refer to Appendix B “Selling Restrictions" of this presentation for information on restrictions on eligibility criteria to participate in the Placement and the institutional component of the Entitlement Offer.
Restrictions On Distribution
This presentation is not for distribution or release in the United States. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be unlawful. The Entitlements and New Shares
have not been, and will not be, registered under the U.S. Securities Act of 1933 (U.S. Securities Act), or the securities laws of any state or other jurisdiction of the United States. Accordingly, the Entitlements may not be taken up or exercised by, and the New Shares may not be offered or sold,
directly or indirectly, in the United States or to any person acting for the account or benefit of any person in the United States, except in transactions exempt from, or not subject to, the registration requirements under the U.S. Securities Act and any other applicable securities laws of any state or
other jurisdiction of the United States. The Entitlements and the New Shares to be offered and sold in the retail component of the Entitlement Offer may only be offered and sold outside the United States in “offshore transactions” (as defined in Rule 902(h) under the U.S. Securities Act) in reliance on
Regulation S under the U.S. Securities Act.
The information in this presentation has been prepared on the basis that all offers of New Shares in Australia under the Offer will be made to Australian investors to whom an offer of New Shares for issue may lawfully be made without disclosure under Part 6D.2 of the Corporations Act because of
sections 708A or 708AA of that Corporations Act, each as notionally modified by ASIC Corporations (Non-Traditional Rights Issue) Instrument 2016/84 and ASIC Instrument 19-0895.

3
IMPORTANT NOTICE AND DISCLAIMER (CONT.)
Disclaimer
To the maximum extent permitted by law, each of KMD, the joint lead managers and underwriters of the Offer and their respective related bodies corporate and affiliates including, in each case, their respective shareholders, directors, officers, employees, agents and advisers, as the case may be
(each, a Specified Person) disclaims and excludes all liability (whether in tort (including negligence) or otherwise) for any direct or indirect loss, expense, damage, cost or other consequence (whether foreseeable or not) suffered by any person as a result of their participation in the Offer or from the
use of or reliance on the information contained in, or omitted from, this presentation, from refraining from acting because of anything contained in or omitted from this presentation or otherwise arising in connection therewith (including for negligence, default, misrepresentation or by omission and
whether arising under statute, in contract or equity or from any other cause). To the maximum extent permitted by law, no Specified Person makes any representation or warranty, either express or implied, as to the currency, fairness, accuracy, completeness or reliability of the information and
conclusions contained in this presentation, and you agree that you will not bring any proceedings against or hold or purport to hold any Specified Person liable in any respect for this presentation or the information in this presentation and waive any rights you may otherwise have in this respect.
None of the joint lead managers, the underwriters, nor their respective affiliates, related bodies corporate, directors, officers, partners, employees, agents or advisers (Advisers) have independently verified or will verify any of the content of this presentation and none of them are under any obligation
to you if they become aware of any change to or inaccuracy in the information in this presentation.
No Adviser has authorised, permitted or caused the issue, submission, dispatch or provision of this presentation and none of them makes or purports to make any statement in this presentation and there is no statement in this presentation which is based on any statement by any of them. No
Adviser takes responsibility for any part of this presentation, or the Offer, and makes no recommendations as to whether you or your related parties should participate in the Offer, nor do they make any representations or warranties to you concerning the Offer. You represent, warrant and agree that
you have not relied on any statements made by any Adviser in relation to the Offer and you further expressly disclaim that you are in a fiduciary relationship with any of them, and agree that you are responsible for making your own independent judgment in relation to any matter arising in connection
with this presentation. No Adviser accepts or shall have any liability to any person in relation to the distribution of this presentation from or in any jurisdiction.
Determination of eligibility of investors for the purposes of the institutional component of the Entitlement Offer and the retail component of the Entitlement Offer is, in each case, determined by reference to a number of matters, including legal and regulatory requirements, logistical and registry
constraints and the discretion of KMD. KMD, the joint lead managers and each other Specified Person disclaim any duty or liability (including for negligence) in respect of the exercise of that determination and the exercise or otherwise of that discretion, to the maximum extent permitted by law.
If you do not reside in a permitted offer jurisdiction, you will not be able to participate in the Offer. KMD, the joint lead managers and each other Specified Person disclaim any duty or liability (including for negligence) in respect of the determination of your allocation. This presentation contains data
sourced from and the views of independent third parties. In such data being replicated in this presentation, no Specified Person makes any representation, whether express or implied, as to the accuracy of such data. The replication of any views in this presentation should not be treated as an
indication that KMD or any other Specified Person agrees with or concurs with such views.
Underwriters and joint lead managers
None of Goldman Sachs New Zealand Limited (Goldman Sachs), Forsyth Barr Group Limited (FBGL) (Goldman Sachs and FBGL, each an underwriter and, together the underwriters) or Forsyth Barr Limited (FBL) (Goldman Sachs and FBL, each a joint lead manager and, together the joint lead
managers) nor any of their respective affiliates or the officers, directors, partners, representatives, employees, agents or advisers of any of them have authorised, permitted or caused the issue, lodgment, submission, dispatch or provision of this presentation.
Each underwriter and joint lead manager, together with their respective affiliates, is a full-service financial institution engaged in various activities, which may include trading, financing, financial advisory, investment management, investment research, principal investment, hedging, market making,
brokerage and other financial and non-financial activities and services. In the ordinary course of their business activities and services, the underwriters, joint lead managers and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or
related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their clients, customers and/or counterparties. Such investments and securities and financial instruments activities and services may involve securities and/or instruments of
KMD and/or its affiliates. The underwriters, joint lead managers and/or their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients or
counterparties that they acquire, long and/or short positions in such securities and instruments.
The underwriters and joint lead managers, in conjunction with their respective affiliates, are acting as the joint lead managers and underwriters of both the Placement and Entitlement Offer. The underwriters and joint lead managers are acting for and providing services to KMD in relation to the
Placement and the Entitlement Offer and will not be acting for or providing services to KMD’s employees, shareholders or creditors. The underwriters and joint lead managers have been engaged solely as independent contractors and are acting solely in a contractual relationship on an arm’s length
basis with KMD. The engagement of the underwriters and joint lead managers by KMD is not intended to create any agency or other relationship between the underwriters or the joint lead managers and KMD or its employees, shareholders or creditors. An affiliate of Goldman Sachs is also acting as
financial adviser to KMD in relation to its analysis and consideration of KMD's and its affiliates' capital structure. In connection with these roles and activities, the underwriters, joint lead managers and their respective affiliates may earn fees, generate profits, be exposed to losses, be reimbursed
expenses and benefit from indemnification.
In connection with the Placement, Institutional Entitlement Offer, institutional bookbuild and/or retail bookbuild, one or more institutional investors may elect to acquire an economic interest in the New Shares (Economic Interest), instead of subscribing for or acquiring the legal or beneficial interest in
those securities. Each underwriter (or its affiliates) may, for its own account, write derivative transactions with those investors relating to the New Shares to provide the Economic Interest, or otherwise acquire New Shares in connection with the writing of those derivative transactions in the
Placement, Institutional Entitlement Offer, institutional bookbuild, retail bookbuild and/or the secondary market. As a result of those transactions, each underwriter (or its affiliates) may be allocated, subscribe for or acquire New Shares or securities of KMD in the Placement, Institutional Entitlement
Offer, institutional bookbuild, retail bookbuild and/or the secondary market, including to hedge those derivative transactions, as well as hold long or short positions in those securities. These transactions may, together with other securities in KMD acquired by an underwriter or its affiliates in
connection with their ordinary course sales and trading, principal investing and other activities, result in an underwriter or its affiliates disclosing a substantial holding and earning fees.
Past Performance
Past performance information provided in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) a promise, representation, warranty, guarantee or indication as to the past, present or future performance of KMD.

4
IMPORTANT NOTICE AND DISCLAIMER (CONT.)
Forward-Looking Statements
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of KMD, including the Outlook on slide 21. Forward-looking statements can generally be identified by use of words such as 'approximate', 'project', 'foresee', 'plan',
'target', 'seek', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will', ‘objective’, 'assume', 'guidance', 'outlook' or similar expressions.
This also includes statements regarding the timetable, conduct and outcome of the Offer and the use of proceeds thereof, statements about the plans, targets, objectives and strategies of KMD, statements about the industry and the markets in which KMD operates and statements about the future
performance of, and outlook for, KMD's business. Any indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-looking statements.
All such forward-looking statements are not guarantees or predictions of future performance and involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of KMD, are difficult to predict, and which may cause the
actual results or performance of KMD to be materially different from any future results or performance expressed or implied by such forward-looking statements.
Such forward-looking statements speak only as of the date of this presentation. Except as required by law or regulation (including the NZX Listing Rules and the ASX Listing Rules), KMD undertakes no obligation to update these forward-looking statements for events or circumstances that occur
subsequent to the date of this presentation or to update or keep current any of the information contained herein.
Any estimates or projections as to events that may occur in the future are based upon the best judgement of KMD from the information available as of the date of this presentation. A number of factors could cause actual results or performance to vary materially from the projections, including the key
risks set out in this presentation. Investors should consider the forward-looking statements in this presentation in light of those risks and disclosures.
In particular, investors should be aware that the statements in slides 21, 31, 32, 33 and 34, and other statements and information regarding outlook, growth or strategy (collectively, the "outlook information") are forward-looking statements. The outlook information has been prepared by KMD based
on an assessment of current economic and operating conditions and various assumptions regarding future factors, events and actions, and general macro-economic drivers. Investors should note that given the significant uncertainties that exist in the current economic and operating conditions and
geopolitical climate, the outlook information may not be achieved. The outlook information assumes the success of KMD's business strategies, the success of which may not be realised within the period for which the outlook information has been prepared, or at all. The outlook information is subject
to a number of risks, including the risks set out in this presentation. Investors should be aware that the timing of actual events, and the magnitude of their impact, might differ from that which is assumed in preparing the outlook information, which may have a material negative effect on KMD's actual
financial performance, financial position and cash flows. In addition, the assumptions upon which the outlook information is based are subject to significant uncertainties and contingencies, many of which are outside KMD's control, are not reliably predictable, and it is not reasonably possible to
itemise each item. Accordingly, neither KMD nor any other person can give investors assurance that the outcomes discussed in the outlook information will be achieved. Investors are strongly cautioned not to place undue reliance on any forward looking statements, such as indications of, and
guidance on, outlook, future earnings and financial position and performance.
General
For the purposes of this Important Notice and Disclaimer, "presentation" means these slides, any oral presentation of these slides by KMD, any question-and-answer session that follows that oral presentation, hard copies of this presentation and any materials distributed at, or in connection with, that
presentation. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. KMD reserves the right to withdraw, or vary the timetable for the Offer, without notice. When used in this presentation, references to
“KMD” are references to KMD Brands Limited together with its subsidiaries and its interests in associates. All references to 1H FY26 are to the six month period ended 31 January 2026.
Acceptance
By attending or reading this presentation, you agree to be bound by the foregoing limitations and restrictions and, in particular, will be deemed to have represented, warranted, undertaken and agreed that: (i) you have read and agree to comply with the contents of this Important Notice and
Disclaimer; (ii) you are permitted under applicable laws and regulations to receive the information contained in this presentation; (iii) you will base any investment decision solely on your own enquiries having due regard to information released by KMD via NZX and ASX (including the Offer
Document); and (iv) this presentation may not be reproduced in any form or further distributed to any other person, passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
Financial Information
All dollar values are in New Zealand dollars ($ or NZD) unless otherwise stated.
KMD's statutory financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) and comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting
Standards, as appropriate for profit oriented entities. The financial information in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of KMD’s views on its future financial performance or condition. Investors should note that past
performance of KMD, including the historical trading price of the shares, cannot be relied upon as an indicator of (and provides no guidance as to) future performance of KMD, including the future trading price of shares.
Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.
Non-GAAP Financial Information
This presentation includes certain financial measures that are "non-GAAP (generally accepted accounting practice) financial information" under Guidance Note 2017: 'Disclosing non-GAAP financial information' published by the New Zealand Financial Markets Authority, and "non-IFRS financial
information" under ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial information'. Such financial information and financial measures (including Underlying EBITDA and Pro Forma LTM leverage) have not been subject to audit or review, and do not have standardised meanings prescribed
under NZ IFRS, Australian Accounting Standards (AAS) or IFRS and therefore, may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with NZ IFRS, AAS or IFRS. Investors
are cautioned not to place undue reliance on any such non-GAAP financial measures included in this presentation. Non-GAAP financial information has not been subject to audit or review.

5
IMPORTANT NOTICE AND DISCLAIMER (CONT.)
Pro Forma Financial Information
This presentation includes a pro forma balance sheet, KMD’s pro forma debt maturity profile, pro forma EBITDA and KMD’s pro forma liquidity and leverage, which have been adjusted to reflect the impact of the Offer, assuming it occurred as at 31 January 2026. The pro forma financial information
provided in this presentation is for illustrative purposes only and is not represented as being indicative of KMD's future financial position and/or performance. Pro forma financial information has not been subject to audit or review.
Basis Of Preparation
KMD has prepared unaudited pro forma financial information as at 31 January 2026 based on unaudited statutory financial statements of KMD as at that date in order to provide investors with the illustration of the impact of the proposed equity raising on the net debt position of KMD and related
credit metrics.
The financial information presented (excluding pro forma adjustments) has been prepared on a basis consistent with the recognition and measurement principles as disclosed by KMD in the General Information, Basis of Preparation of Financial Statements and Accounting Policies sections of the
Notes to the Financial Statements contained within KMD's HY26 results. The accounting policies adopted by the Directors are in accordance with Generally Accepted Accounting Practice in New Zealand, which is the New Zealand equivalent to International Financial Reporting Standards (NZ
IFRS). They are also in accordance with International Financial Reporting Standards.
Key Assumptions
The pro forma financial information presents the assumed impact of the proposed equity raising as if it had occurred on 31 January 2026. It has been assumed that proceeds from the equity raising of NZ$65.3m will be applied to repay debt and recapitalize the business.

6
CONTENTS
1.EXECUTIVE SUMMARY
2.1H FY26 RESULT AND FY26 OUTLOOK
3.UPDATE ON NEXT LEVEL TRANSFORMATION
4.EQUITY RAISING AND DEBT REFINANCING
5.KEY RISKS
6

SECTION 1
EXECUTIVE
SUMMARY


KMD BRANDS

7
SECTION 1
EXECUTIVE
SUMMARY
7

8
CREATING A STRONGER KMD BRANDS
1
2
3
4
5
KMD Brands has returned to growth under new leadership in 1H FY26
Substantial progress achieved against strategic initiatives
Significant upside remains with improved capabilities supporting identified growth opportunities
and stronger margins
High conviction in three pillars of strategy – 1) brand and product-led offence, 2) data-driven
intelligence and 3) sustainable profitability
Equity raise and bank facility refinancing to strengthen our balance sheet and focus on ‘Next Level’
execution

9
WE ARE MAKING STRONG PROGRESS IN OUR 3-YEAR
NEXT LEVEL JOURNEY
TRUSTED ICONIC BRANDSWHAT WE’RE DELIVERINGWHAT’S NEXT IN OUR 3-YEAR JOURNEY
✓Iconic global brands built for
purpose with strong awareness
✓Highly technical and seasonally
diverse
✓Diversified presence across
geography and channels
✓Strong focus on brand building and
product innovation
✓On-track to deliver cost-savings
above target for FY26
✓Disciplined ROI focus with FY26
cash flow benefits
✓Reduced inventory balance with
improved mix
✓Positive growth inflection in all
brands in 1H FY26
✓New product driving topline
✓Ongoing improvements in systems
and capabilities to support
improved execution
✓Ongoing focus on cost and
investment discipline
$27.5M
15
COST SAVINGS
ON TRACK FOR
FY26
STORES
CLOSED
TO DATE
10+
SENIOR
LEADERSHIP
CHANGES
60%
GROWTH
ACROSS
ALL
BRANDS
TARGET
GROSS
MARGIN
10%
TARGET
EBITDA
MARGIN
Note: Target EBITDA Margin refers to Underlying metrics.

10
0.1 %
3.0 %
(6.3)%
4.6 %
12.3 %
6.5 %
NEXT LEVEL TRANSFORMATION IS BEGINNING TO DELIVER
RESULTS
OVERALL INFLECTION IN
GROWTH ACROSS BRANDS
1H FY261H FY25
EFFECTIVE GROSS MARGIN
MANAGEMENT AGAINST DIFFICULT
MARKET BACKDROP & INVENTORY
CLEARING
IMPROVED PROFITABILITY WITH
STRONG COST CONTROL
Sales growth %Group underlying gross margin %Group underlying EBITDA margin %
58.0 %
56.8 %
1H251H26
0.8 %
2.3 %
1H251H26
Note: EBITDA margin refers to Underlying metrics.

11
WE ARE STRENGTHENING OUR BALANCE SHEET TO FOCUS
ON EXECUTION OF NEXT LEVEL STRATEGY
PRO FORMA IMPACT
1
KEY MESSAGES
Leverage ratio (x)
2
Net Debt (NZ$m)
1. Pro forma for net proceeds of equity raise (net of underwriting fees and other capital raising costs).
2. Net Debt / EBITDA (per covenant measurement definitions).
Strengthen KMD balance sheet with NZ$65m
equity raising
Up to 2.5 year refinancing of debt facility
Provides access to sufficient liquidity and stable
capital structure to execute strategy
Lowers leverage with pathway to reach target
<0.5x ratio by end of FY27
✓
✓
✓
✓
3.8 x
1.3 x
Jan-26 Leverage ratioPF Jan-26 Leverage ratio
PF Jan-26 Leverage ratio
Jan-26 Leverage ratio
94
32
Jan-26 Net DebtPF Jan-26 Net Debt
PF Jan-26 Net Debt
(62)
(2.5x)

SECTION 2
1H FY26 RESULT
AND FY26 OUTLOOK

KMD BRANDS

12
SECTION 2
1H FY26 RESULT
AND FY26 OUTLOOK
12

13
EARLY MOMENTUM IN NEXT LEVEL TURNAROUND
KEY TAKEAWAYS
Group sales growth achieved in both the wholesale and
direct-to-consumer channels
✓
OPEX % of Sales trending towards 50% target
2
Gross margin reflecting near-term impact of
marketplace and channel management
Significant underlying EBITDA growth
✓
✓
Underlying EBITDA margin expansion with sales growth and
reset cost base
✓
1H FY26 RESULT SNAPSHOT
1
1.Reflected results are underlying; metrics are compared against last year (1H FY25).
2.OPEX refers to underlying operating expenses.
$505M
SALES
+7.3%
SALES GROWTH
56.8%
GROSS MARGIN
54.5%
OPEX % OF SALES
2
$11.5M
EBITDA
2.3%
EBITDA MARGIN
✓

14
GROUP PROFIT & LOSS
1.Statutory results include the impact of IFRS 16 leases. The impacts of IFRS 16, restructuring, software as a service accounting,
the notional amortisation of customer relationships, impairment and onerous contracts have been excluded from Underlying
results. Refer to Appendix A for a reconciliation of Statutory to Underlying results.
2.1H FY26 NZD/AUD conversion rate 0.881 (1H FY25 0.909), 1H FY26 NZD/USD conversion rate 0.581 (1H FY25 0.595).
3.Prior period restatement: following an accounting system change at the Group’s wetsuit manufacturer, $2.5m of 1H FY25
production labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s
1H FY25 EBITDA or net profit.
GROUP SALES MOMENTUM
•Total sales +7.3% YOY, with solid growth achieved in both the direct-to-consumer (“DTC”)
and wholesale channels.
•Kathmandu achieved strong DTC sales growth throughout the first half in both Australia and
New Zealand.
•Rip Curl wholesale sales growth outperformed the DTC channel, with strong wholesale
demand in Europe and North America.
•Oboz wholesale sales grew strongly, supported by closeout activity and strong in-season
buying from key accounts.
GROSS MARGIN REFLECTS A PROMOTIONAL MARKETPLACE
•Group gross margin decreased -1.2% of sales in a promotional marketplace, balancing
sales growth with gross margin achievement, while optimising inventory composition and
selling through aged inventory.
•1H FY25 Group gross margin has reduced by c. 0.5% of sales following an accounting
system change at the Group’s wetsuit manufacturer, with no impact on EBITDA or net
profit
3
.
•1H FY26 gross margin is above 2H FY25 gross margin.
OPERATING LEVERAGE (% OF SALES) ACHIEVED
•Underlying operating expenses lower than last year on a constant currency basis, with a
Next Level strategic cost reset helping to offset strategic growth investments and continued
global cost pressure.
KMD BRANDS
Statutory
Underlying
1
NZ $m
2
1H FY26
1H FY25
1H FY26
1H FY25
Var %
SALES
505.4
470.9
505.4
470.9
7.3%
GROSS PROFIT
3
287.1
273.0
287.1
273.0
5.2%
Gross margin
56.8%
58.0%
56.8%
58.0%
OPERATING EXPENSES
3
(223.8)
(220.3)
(275.6)
(269.1)
2.4%
% of Sales
44.3%
46.8%
54.5%
57.2%
EBITDA
63.3
52.7
11.5
3.9
196.6%
EBITDA margin %
12.5%
11.2%
2.3%
0.8%
EBIT
(1.7)
(12.7)
(6.4)
(13.3)
52.1%
EBIT margin %
-0.3%
-2.7%
-1.3%
-2.8%
NPAT
(13.1)
(20.7)
(11.5)
(16.1)
28.4%

15
KATHMANDU PROFIT & LOSS
KATHMANDU LEADS GROUP SALES MOMENTUM
•Total sales +12.3% YOY despite a net reduction of 4 stores, showing strong sales momentum
throughout the first half, and improving from +2.5% YOY in the fourth quarter of last year.
•Strong sales results in both Australia
2
(+10.2%

YOY) and New Zealand (+8.9% YOY).
•Sales growth continued through the second quarter, with the key Black Friday and Christmas
trading periods cycling a good result last year.
•Online sales in line with last year (cycling strong growth) at $20.6m, comprising 11.8% of DTC
sales.
•Same store sales (incl. online) +12.8%
3
.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin decreased -1.5% of sales with a focus on selling through aged inventory in the first
quarter, and maintaining competitive promotional intensity through the second quarter. Total
inventory ended 1H FY26 $9.8m lower than last year ($13.5m lower at constant currency).
•Underlying operating expenses reduced YOY, improving operating leverage following a strategic
cost reset and ongoing cost discipline.
1.The impacts of IFRS 16, restructuring, impairment and onerous contracts are excluded from underlying results. Refer to
Appendix A for a reconciliation of Statutory to Underlying results.
2.At constant exchange rates.
3.Same store sales are for the 27 full weeks ended 1 February 2026 and are measured at constant exchange rates.
128.3
194.0
152.3
156.8
176.1
21.0%
13.6%
10.9%
13.4%
11.8%
-1.0%
4.0%
9.0%
14.0%
19.0%
24.0%
0.0
50.0
100.0
150.0
200.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
SALES
StoresOnline
WholesaleOnline % of DTC
-18.3
12.3
-8.3-12.8-2.4
-14.3%
6.3%
-5.5%
-8.2%
-1.3%
-16.0%
-11.0%
-6.0%
-1.0%
4.0%
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
EBITDA
EBITDAEBITDA margin
NZ $m
1H FY26
1H FY25
Var %
SALES
176.1
156.8
12.3%
EBITDA (underlying
1
)
(2.4)
(12.8)
81.6%
EBITDA margin %
-1.3%
-8.2%
EBIT (underlying
1
)
(10.2)
(22.0)
53.9%
EBIT margin %
-5.8%
-14.1%
Owned stores
152
156

16
257.8
306.4
278.3
278.5
291.4
13.8%
9.6%
10.5%
11.5%
12.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
SALES
StoresOnline
WholesaleLicensing / Other
Online % of DTC
33.737.627.423.620.5
13.1%
12.3%
9.9%
8.5%
7.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
EBITDA
EBITDAEBITDA margin
RIP CURL PROFIT & LOSS
STABLE GLOBAL DIVERSIFIED SALES
•Total sales +4.6% YOY, helped by YOY movement in FX rates used to convert global sales to
NZD reporting currency. On a constant currency basis, Rip Curl total sales were +0.3% above
the first half of last year.
•Wholesale sales +9.8%, supported by strong demand in Europe and North America.
•Online sales +6.7% to $22.5m, comprising 12.0% of DTC sales.
•Direct-to-consumer total sales (incl. online) +1.9%, with strong sales results for North America
offsetting a challenging market during the southern hemisphere peak summer period.
•Direct-to-consumer same store sales (incl. online) +1.5%
2
.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin decreased -1.2% of sales, impacted by wholesale channel mix and elevated
promotional activity.
•Underlying operating expenses in line with last year on a constant currency basis, with a
strategic cost reset helping to offset strategic growth investments and continued global cost
pressures.
1.The impacts of IFRS 16, restructuring, the notional amortisation of customer relationships, impairment and onerous contracts
are excluded from underlying results. Refer to Appendix A for a reconciliation of Statutory to Underlying results.
2.Same store sales are for the 27 full weeks ended 1 February 2026 and are measured at constant exchange rates.
NZ $m
1H FY26
1H FY25
Var %
SALES
291.4
278.5
4.6%
EBITDA (underlying
1
)
20.5
23.6
(13.0%)
EBITDA margin %
7.0%
8.5%
EBIT (underlying
1
)
10.5
16.1
(34.3%)
EBIT margin %
3.6%
5.8%
Owned stores
170
177

17
OBOZ PROFIT & LOSS
SALES TREND IMPROVING
•Total sales +6.5% YOY.
•Online sales +0.9%, impacted by lower closeout inventory levels YOY. In the second half, the
website will move onto the group online trading platform. Digital marketing continues to be refined
with new agency partners through an updated digital funnel strategy and fresh creative.
•Wholesale sales +7.5% with strong in-season buying from key accounts.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin remained stable, improving +0.2% of sales despite tariff impacts, supported by
lower closeout activity YOY.
•Underlying operating expenses tightly controlled and lower than last year.
•Note: The Kathmandu segment includes 1H FY26 $3.2m sales of Oboz products in Kathmandu
AU & NZ stores at full vertical gross margin (1H FY25 $3.4m).
1.The impacts of IFRS 16, restructuring, the notional amortisation of customer relationships, impairment and
onerous contracts have been excluded from underlying results. Refer to Appendix A for a reconciliation of
Statutory to Underlying results.
21.2
47.5
38.0
35.6
38.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
SALES
OnlineWholesale
0.0
2.9
-0.1-2.2-1.1
-0.2%
6.1%
-0.1%
-6.3%
-2.8%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
1H
FY22
1H
FY23
1H
FY24
1H
FY25
1H
FY26
EBITDA
EBITDAEBITDA margin
NZ $m
1H FY26
1H FY25
Var %
SALES
38.0
35.6
6.5%
EBITDA (underlying
1
)
(1.1)
(2.2)
52.5%
EBITDA margin %
-2.8%
-6.3%
EBIT (underlying
1
)
(1.1)
(2.6)
59.5%
EBIT margin %
-2.8%
-7.3%

18
INVENTORY AT A THREE-YEAR LOW
•Group inventory balance reduced for the third successive year, as inventory positions continue
to reduce towards optimal levels.
•Inventory obsolescence provisions represent 1.7% of gross inventory, consistent with the last
two half-years, and -50 bps below Jul 25.
•Inventory and trade payables include -$17.1m lower goods in transit YOY.
•Stock turns improved from 1.33x at Jan 25 to 1.56x at Jan 26.
DEBT
•Net Debt $94.0m at Jan 26 impacted by $5.6 million with the weakening of the NZ dollar year-
on-year.
•The Group complies with all amended bank covenants at 31 January 2026.
•On 30 January 2026 the Group extended its existing debt facility term and adjusted the fixed
charge cover ratio for the July 2026 and January 2027 measurement periods.
•The Group also reduced its total syndicated bank facilities by $49 million to approximately $283
million, consisting of an A$207 million and NZ$43 million multi-currency revolving facility. See
slide 39 for information about the Group's new bank debt facility.
BALANCE SHEET
1.Key ratios calculated using 12-month Underlying P&L measures.
2.Cost of sales / Average Inventories YOY.
3.Net Debt / EBITDA (per covenant measurement definitions).
4.Net Debt / (Net Debt + Equity).
5.(EBITDA + Rent) / (Rent + Net Finance Costs excl. FX).
6.Pro forma for net proceeds of equity raise (net of underwriting fees and other capital raising costs).
Key Balance Sheet items and ratios
1
NZ $mJan 26Jan 25Jul 25
Net working capital179.2 192.6 157.7
Inventories274.1 303.7 254.0
Current trade and other receivables80.0 79.1 92.3
Current trade and other payables(174.8) (190.2) (188.7)
Net work ing capital % of sales17.5% 19.6% 15.9%
Stock Turns
2
1.56x 1.33x 1.65x
Net Debt(94.0) (76.2) (52.8)
Leverage Ratio
3
3.8x 2.1x 3.3x
Net Debt to Equity
4
12.0% 8.9% 7.1%
Fixed Charge Cover Ratio (FCCR)
5
1.08x 1.17x 1.03x
Equity689.3 778.7 689.9
PF Jan-26 net debt of
NZ$31.9m
6
and
leverage ratio of 1.3x
6

19
CASH FLOW
1.Adjusted for impacts of adopting IFRS 16.
•Working capital outflow: January net working capital balances are traditionally elevated as
stock to support Kathmandu’s Southern Hemisphere Autumn / Winter season, and Rip Curl’s
Northern Hemisphere Summer season is shipped before Chinese New Year.
•Inventory purchase timing phased earlier than last year, helping to bring newness into stores
to capitalise on Black Friday and Christmas trade, therefore reducing trade payables at
January 2026. Also, higher trade payables at July 2025, which unwound in August 2025,
resulted in additional cash outflows in 1H FY26.
•Net Debt $94.0m at Jan 26 includes a $5.6m impact from a weaker NZ dollar YOY.
•No interim dividend declared as a result of 1H FY26 operating performance.
207.0
244.4
219.7
226.2
198.3
192.6
157.7
179.2
0.0
40.0
80.0
120.0
160.0
200.0
240.0
280.0
Jul 22Jan 23Jul 23Jan 24Jul 24Jan 25Jul 25Jan 26
GROUP NET WORKING CAPITAL HALF-YEAR CYCLE
40.1
84.9
55.7
96.2
59.7
76.2
52.8
94.0
-50
-10
30
70
110
Jul 22Jan 23Jul 23Jan 24Jul 24Jan 25Jul 25Jan 26
GROUP NET DEBT HALF-YEAR CYCLE
Cash Flow (NZ $m) 1H FY261H FY25
NPAT(13.1)(20.7)
Change in working capital(21.3)(1.5)
Non-cash items60.068.0
Operating cash flow25.645.8
Adjusted operating cash flow
1
(23.0)(0.8)
Key Line Items:1H FY261H FY25
Net interest paid (including facility fees)
1
(6.0)(6.3)
Net income taxes paid(2.8)(4.7)
Capital expenditure(13.1)(14.1)

20
TRADING UPDATE
1.Sales and gross profit results for the 6 full trading weeks from Monday 2 February 2026 to Sunday 15 March 2026
are sourced from BI reports and measured at constant currency YOY.
Direct-to-consumer same store sales (including online) for the first six full
weeks of the second half from Monday 2 February to Sunday 15 March
2026
1
in a seasonally non-significant trading period:
•Kathmandu +11.1% YOY, combined with gross margin improvement
YOY of c. +50 bps (+0.5% of sales).
•Rip Curl +1.2% YOY.
20

21
OUTLOOK
Given early momentum in its Next Level turnaround strategy and despite a challenging global consumer operating environment, the Group remains focused on delivering continued
performance improvement compared to prior year.
BRAND GROWTH AND GROSS MARGIN
•Kathmandu continued its recent sales momentum in the first 6 weeks of 2H FY26, with the key Autumn and Winter trading periods still to come. Kathmandu are also on track to
achieve gross margin expansion YOY in 2H FY26, with consumers responding positively to improved product flow and assortment.
•Rip Curl and Oboz wholesale order books for 2H FY26 are in line with last year, with the Europe and North America summer season to come. Gross margin expansion is
anticipated YOY in 2H FY26, reflecting actions taken to offset the US tariffs, and cycling specific clearance of inventory in the second half of last year.
OPERATING LEVERAGE
1
•Group underlying operating expenses as a % of sales are forecasted to improve YOY, showing progress towards mid-term targets. Underlying operating expenses for the full
year are planned to be broadly flat YOY on a constant currency basis (before any FY26 management incentives). The year-on-year impact of global currency fluctuation is
expected to have a significant impact on underlying operating expenses (1H FY26 half-year impact $9.1m as shown in Appendix A). The Group remains on track to achieve its
Next Level strategic cost reset savings, helping to offset cost inflation, and deliver moderated re-investment to drive Next Level strategic growth opportunities.
EBITDA MARGIN
1
•KMD Brands expects to deliver further EBITDA margin expansion in FY26.
CAPITAL ALLOCATION
•The Group continues to focus on the optimisation of its store network as part of the Next Level integrated marketplace strategy. Capital expenditure for FY26 is targeted to be at
the lower end of the guided range (approximately $25m).
•KMD Brands continues to target a leverage ratio of <0.5x Net Debt / EBITDA by end of FY27.
1.The impacts of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships, impairment and onerous contacts are excluded from Underlying results. Refer to Appendix A for a reconciliation of Statutory to Underlying
results.

Kathmandu’
SECTION 3


NEXT LEVEL
TRANSFORMATION
UPDATE ON
RIPCURL <

KMD BRANDS
22
SECTION 3
UPDATE ON
NEXT LEVEL
TRANSFORMATION
22

23
WHAT WE SAIDWHAT WE’RE DELIVERINGWHAT IS NEXT ON OUR 3-YEAR JOURNEY
Reboot growth at right
profitability
✓Inflection to growth for all brands in 1H FY26 with effective gross margin
management despite challenging backdrop
►Deliver sustainable brand growth and ~60% gross margin by FY28
Reset strategy on three core
brands
✓Faster product innovation and storytelling, sharper channel-led
assortments and portfolio actions
►Scaling product-led growth and channel discipline to build sustained brand
momentum and margin improvement
Improve digital and data-led
decision making
✓ERP/D365 implementation completed, Shopify live across brands, and
decision-intelligence tools deployed
►Leveraging data and analytics to drive further inventory reduction,
profitability uplift and productivity gains across the group
$25m cost reset in FY26
✓On track to deliver $27.5m cost savings
►Continued assessment for simplification and cost savings
►Maintain cost growth at or below inflation to support operating expenses
reaching <50% of sales
$15m growth investment in
FY26
✓Investments to drive short and long-term profitable growth
✓FY26 investment reduced to $10.8m (withholding $4.2m) with discipline
around market conditions and returns
►Continue to apply rigorous investment criteria and sequence investment
based on self-funding approach
21 store closures
✓15 stores closed and 6 further on track for closure by
September 2027
►On-going evaluation of stores against clear criteria to determine the optimal
path for our store portfolio
Improved inventory
management
✓Inventory reduced by 9.7% (Jan 26 vs. Jan 25) with improved mix►Working capital <16% of sales by FY28
Review non-core assets
✓Review underway on non-core assets
►Ongoing assessment of non-core assets that do not provide advantage to
three core brands
WE HAVE BEEN DELIVERING ON WHAT WE SAID IN THE FIRST
6 MONTHS OF OUR 3-YEAR NEXT LEVEL JOURNEY


24
3
2
1
A brand &
product-led
offence
Efficient, scalable
processes and
decision
intelligence
Delivering
sustainable
profitability
Delivering growth across all
brands
Adding new capabilities to
fuel growth & drive
operating leverage
Reset cost base with
focused gross margin
expansion
INCREASED CONVICTION IN NEXT LEVEL TRANSFORMATION
STRATEGY
24

25
GLOBAL PLATFORM BUILT
AROUND THREE TECHNICAL,
PURPOSE DRIVEN BRANDS
STRONG BRAND RELEVANCE DRIVEN BY PURPOSE
•Strong awareness of all brands
•Kathmandu is known and trusted for outdoor adventure
•Rip Curl has a deep connection and credibility in core surf
•Oboz is authentic to the trail
POSITIONED IN ATTRACTIVE CATEGORIES
•Participate in activity-based segment of market, which is seeing growth across categories of 5%+
1
•Ongoing market shift to technical and premium product
GLOBAL REACH AND DIVERSIFICATION
•Global presence with bespoke go to market model for each region
•Seasonal diversity across portfolio
1.Segment growth is based on Mordor Intelligence, Reuters, IMARC Group, Statistica, Grand View Research, Euro
Monitor, IBISWorld.
25
1

2626
Fresh product flow and innovation
in FY26/27 seasonal releases
Store network segmentation
optimised for profitability
Shift to capital-light distributor-
led model and digital expansion
Strong brand and executional
capability
Clear product roadmap and
associated stories
INITIATIVES TO DRIVE NEXT LEVEL AT KATHMANDU
BRAND
STRATEGY
WHAT HAS BEEN SET IN MOTIONWHAT IT ENABLES
Accelerated
product strategy
•Seasonal product assortments
•Limited-quantity ranges on faster timelines
✓Product relevance, brand buzz
and faster trend response
Brand storytelling
& innovation
•Innovation embedded in seasonal launches
•“Store of the Future” concepts
✓Authentic positioning across
outdoor and adventure categories
Profitable channel
mix / Integrated
Marketplace
•Improved pricing and markdown strategy
•Assortment alignment across store segments
✓Reset of expectations on product
and brand value
•Store segmentation improvements
•Digital platform re-engineered
✓Optimal store network
✓Stronger brand value and more
efficient digital sales
International
Strategy
•Shift to distributor-led and digital expansion
•Focused regional market prioritisation
✓Improved profitability
✓New market penetration
Strong capability
•Established leadership team and capability mix in place
•Investment in store staff training
✓Confidence in strategic and
operational execution
HOW WE WILL MEASURE
SUCCESS
1

2727
Brand resonance and energy
with younger demographic
Rip Curl US EBITDA positive
Uplift in beach-culture
category sales
INITIATIVES TO DRIVE NEXT LEVEL AT RIP CURL
BRAND
STRATEGY
WHAT HAS BEEN SET IN MOTIONWHAT IT ENABLES
Youthful brand
reset
•“Next Gen” focus across brand, athletes and product
•Sharpened positioning around The Search
✓Clear, authentic surf brand with
modern appeal
Growth beyond
core
•Expanded from surf-only to broader beach lifestyle
•Trialled women-focused stores (e.g. Bondi)
✓Broader reach and improved
distribution
Return US to
profitability
•Resized North American operations
•Store closures and costs base reduction
✓Stable, profitable, US business
anchored by Hawaii
Digital uplift
•Rebuilt digital platform (Shopify)
•Reset digital capability and operating model
✓Higher online sales efficiency and
lower costs
Product
simplification
•Innovation focused on core categories
•Centralised product engine and reduced SKUs
✓Clearer product DNA and lower
COGS
Digital sales growth rate
above retail and wholesale
Innovation leadership in core
categories
HOW WE WILL MEASURE
SUCCESS
1
Product lifecycle cost reduction

2828
BRAND
STRATEGY
WHAT HAS BEEN SET IN MOTIONWHAT IT ENABLES
More with
the core
•Accelerated core product innovation to market earlier
✓Fresher range for rugged, comfort-
focused customers
Accelerate ‘fast’
category
•Updated Fast Trail range for future seasons
✓Clear category fit and brand reset
•Consumer research to refine fast & light segments
Products that open
all-terrain
opportunities
•Extended all-terrain category
•Deeper cross-trail and introduce Vault categories
✓Trend-right product design
•New distribution relevant to Vault✓New entry point to Oboz
Channel diversity
•Renewed focus with Oboz premium partners
•Marketplace distribution with large outdoor-adjacent
distribution
✓Fresh offering with outdoor
speciality and farm and ranch
✓Expand reach and scale with right
product
Digital uplift
•Shopify launch in Q3’FY26
✓Enhance brand storytelling
✓Premium distribution for refreshed
offering
INITIATIVES TO DRIVE NEXT LEVEL AT OBOZ
Building channel adjacencies at
scale
Increase in sales from “Fast Trail”
product category
Digital sales growth rate
above wholesale
Deeper penetration with Oboz
premium partners
Drive brand energy and
accessibility with trend-focused
consumer
HOW WE WILL MEASURE
SUCCESS
1

29
DIGITAL PLATFORM CHANGES TO DRIVE GROWTH ACROSS
OMNI-CHANNEL MODEL
FY26 ACTIONS
Leverage recent Shopify and D365
implementation to improve consumer
experience and drive conversion
✓
Scale creative ad volume with new
performance marketing capabilities and
AI tools
Reset product assortment, fulfilment and
planning for digital business
Connect reward members to digital
campaigns with laser focus on highest-
value consumer opportunities
✓
✓
✓
WHAT’S NEXT
THE OPPORTUNITY
Online sales penetration (%)
~10%
~15-25%
Technical / outdoor
wear industry average
(Today)
Digital store management
Brand concept calendar
Digital capabilities
and tools
2
1.Represents online sales as % of total sales. 2. Various market reports / desktop research.
1
1

30
WHAT HAS BEEN SET IN MOTION OR COMPLETEDWHAT IT ENABLES
Procurement
•Identified and executed procurement savings
–Improved terms with manufacturers, and efficiencies on freight and logistics
✓Cost of goods sold reduction, product relevance, and faster
trend response
Technology
•Implemented digital systems to drive durable efficiencies
–ERP / D365 system, Shopify integration across brands, updated HR platform
✓Better forecasting, planning, and assortment strategies
✓Improved employee and consumer experience
Decision
intelligence
•Deployed data intelligence tools to enhance growth and profitability
–Implementation of inventory and store profitability tools and advanced consumer
analytics
✓Improved profitability
✓Accelerated insight generation
Supply chain
excellence
•Consistent measures to optimise supply chain operations
–Kathmandu and Oboz sales and operations planning process underway
✓Confidence in strategic and operational execution
✓Improved inventory decisions
IMPROVED CAPABILITIES AND TECHNOLOGY IN PLACE TO
DRIVE INTEGRATED EXECUTION

2

31
10.5
27.5
6.6
4.5
5.9
-
5.0
10.0
15.0
20.0
25.0
30.0
RestructureMarketing realignmentStore optimisationOtherFY26F cost savings
ON TRACK TO OVER-DELIVER ON FY26 COST SAVINGS
ON TRACK TO DELIVER $27.5M OF COST SAVINGS, IMPROVEMENT ON THE $25M ANNOUNCED
AT INVESTOR DAY IN SEPTEMBER 2025
3

32
DISCIPLINED APPROACH TO INVESTMENT WITH ROI FOCUS
DIGITAL RESET$2.3m
PRODUCT INNOVATION$1.5m
STORE NETWORK AND PERFORMANCE$4.8m
INTEGRATED BUSINESS EXECUTION$2.2m
Total FY26E Investment$10.8m
Investment withheld given performance / market +$4.2m
UPDATE ON ANNOUNCED FY26 INVESTMENT
1
2
3
4
32
COMMENTARY
✓
✓
✓
✓
Phased, self-funded
model
Incremental investment
unlocked as performance
improves
Growth initiatives prioritised by
ROI and speed to payback
Strategic investment to
support growth and
profitability
3

33
PROGRESSING WITH PLANNED STORE CLOSURES AND
CONTINUING TO REFINE OUR STORE PORTFOLIO
•Stores are evaluated against clear criteria to determine the optimal
path for our store portfolio
•Our evaluation criteria:
•Geographic alignment with strategy
•Presence in attractive shopping locations
•Alignment with brand store segmentation and category vision
•Threshold profitability
6
15
21
CompletedClosure on track by Sep-27Total
Lease cost
savings
$4.2M
$1.6M
$5.8M
UPDATE ON ANNOUNCED CLOSURESREVIEW OF ADDITIONAL STORES

3

34
DELIVERING OUR FINANCIAL AMBITION OVER THE NEXT
THREE YEARS
GROSS
MARGIN
OPERATING
EXPENSE
% OF SALES
EBITDA
2

MARGIN
NET WORKING
CAPITAL
% OF SALES
~60%<50%10%+<16%
1.Prior period restatement: following an accounting system change at the Group’s wetsuit manufacturer, production labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s EBITDA or net profit.
2.Statutory results include the impact of IFRS 16 leases. The impacts of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships, impairment and onerous contracts have been excluded from Underlying results.
Refer to Appendix A for a reconciliation of Statutory to Underlying results.
3
58.3%
58.4%
56.5%
60.0%
Jul 23Jul 24Jul 25Target
Jul 28
GROSS MARGIN
1

% of sales
48.7%
53.2%
54.8%
50.0%
Jul 23Jul 24Jul 25Target
Jul 28
OPERATING EXPENSES
1,2
% of sales
>>
9.6%
5.1%
1.8%
10.0%
Jul 23Jul 24Jul 25Target
Jul 28
EBITDA MARGIN
2
% of sales
>>
19.9%
20.3%
15.9%
16.0%
Jul 23Jul 24Jul 25Target
Jul 28
NET WORKING CAPITAL
% of sales
>>
>>

SECTION 4
EQUITY RAISING
AND DEBT
REFINANCING


KMD BRANDS

35
SECTION 4
EQUITY RAISING
AND DEBT
REFINANCING
33
35

EQUITY RAISING DETAILS
Offer size and
structure
•Fully underwritten NZ$65.3 million equity raising (Offer), comprising:
•1 for 0.73 pro-rata accelerated renounceable entitlement offer to raise approximately NZ$58.5m (Entitlement Offer), and
•Placement to raise approximately NZ$6.8m (Placement)
•The Entitlement Offer consists of an offer to Eligible Institutional Shareholders (Institutional Entitlement Offer) and an offer to Eligible Retail Shareholders (Retail
Entitlement Offer)
•Approximately 1,087.8 million New Shares are to be issued under the Offer, representing approximately 152.8% of the existing shares on issue
Offer price for the
equity raising
•The Offer Price under both the Placement and Entitlement Offer is NZ$0.06 per New Share, representing a:
•47.1% discount to TERP
1
of NZ$0.113
•69.2% discount to KMD’s last traded price of NZ$0.195 on NZX as at Wednesday, 25 March 2026
•The Australian Dollar Offer Price for the Retail Entitlement Offer will be announced on Thursday, 2 April 2026 using the prevailing AUD/NZD exchange rate published by
the New Zealand Reserve Bank on Tuesday, 31 March 2026
Use of proceeds
•The net proceeds will be used to reduce KMD’s net debt position and strengthen the balance sheet, and in conjunction with the refinanced debt facility provide a stable
balance sheet to enable execution of KMD’s next level strategy
Placement
•Institutional Investors (which may include Eligible Institutional Shareholders and ASX Brokers or NZX Firms acting on behalf of retail clients) will be invited to participate
in the Placement
•New Shares issued to participants in the Placement will be on an ex-entitlement basis
Institutional
Entitlement Offer
•Eligible Institutional Shareholders will be invited to take up their entitlements in an accelerated Institutional Entitlement Offer
•New Shares relating to entitlements not taken up will be offered to Institutional Investors (which may include Eligible Institutional Shareholders and ASX Brokers or NZX
Firms acting on behalf of retail clients) in the Institutional Bookbuild
•Any Premium achieved in the Institutional Bookbuild will be returned to renouncing and Ineligible Institutional Shareholders as detailed further in the Offer Document
1.TERP is the theoretical price at which KMD shares trade immediately after the ex-date for the Offer. TERP is a theoretical calculation only and the actual price at which KMD shares trade on NZX immediately after the ex-date for the Offer will depend on many
factors and may not be equal to TERP. TERP is calculated by reference to the last traded price of KMD shares on NZX on Wednesday, 25 March 2026 being the last trading day prior to the announcement of the Offer and includes all New Shares issued under the
Placement and Entitlement Offer.
36

EQUITY RAISING DETAILS (CONT.)
Retail Entitlement
Offer
•Eligible Retail Shareholders will be invited to take up their entitlement in the Retail Entitlement Offer
•Eligible Retail Shareholders seeking to participate in the Retail Entitlement Offer will only be able to do so electronically and should visit the offer website for more details
(kmd.rightsoffer.co.nz)
•Eligible Retail Shareholders who take up their entitlement in full may participate in the Retail Bookbuild by applying for additional New Shares in excess of their
Entitlement
•New Shares relating to entitlements not taken up will be offered to Institutional Investors (which may include Eligible Institutional Shareholders and ASX Brokers or NZX
Firms acting on behalf of retail clients) and Eligible Retail Shareholders in the Retail Bookbuild
•Any Premium achieved in the Retail Bookbuild will be returned to renouncing and Ineligible Retail Shareholders as detailed further in the Offer Document. There will be
no entitlements trading on market and entitlements are not otherwise transferable
Board participation
•All Directors of KMD who are shareholders have confirmed they will participate in the Offer to maintain their pro rata shareholding. David Kirk and Philip Bowman have
confirmed they will apply for at least twice the level of their pro rata entitlement in the AREO
Record date
•7:00pm New Zealand time on Wednesday, 1 April 2026
Ranking
•All new shares issued under the Offer will rank equally with existing KMD ordinary shares from date of issue
Underwriting
•The Offer is fully underwritten
37

EQUITY RAISING TIMETABLE
GeneralDate
Announcement of Offer, and voluntary suspension continued on NZX and ASXTuesday, 31 March 2026
Record date for the Offer7:00pm NZDT (5:00pm AEDT) Wednesday, 1 April 2026
Placement and Institutional Entitlement Offer
Placement and Institutional Entitlement Offer opensTuesday, 31 March 2026
Placement and Institutional Entitlement Offer closesWednesday, 1 April 2026
Institutional Shortfall BookbuildWednesday, 1 April 2026
Voluntary suspension lifted – KMD shares will commence trading on NZX and ASX on an ex-entitlement basisThursday, 2 April 2026
ASX Settlement of New Shares under the Placement and Institutional Entitlement OfferFriday, 10 April 2026
ASX Allotment of New Shares under the Placement and Institutional Entitlement OfferMonday, 13 April 2026
NZX Settlement and Allotment of New Shares under the Placement and Institutional Entitlement OfferMonday, 13 April 2026
Commencement of trading of New Shares issued under the Placement and Institutional Entitlement Offer on NZX and ASXMonday, 13 April 2026
Retail Entitlement Offer
Record date7:00pm NZDT (5:00pm AEDT) Wednesday, 1 April 2026
A$ price announcementThursday, 2 April 2026
Retail Entitlement Offer opensTuesday, 7 April 2026
Retail Entitlement Offer closesThursday, 16 April 2026
Retail Shortfall Bookbuild (for retail entitlements not taken up and retail entitlements of ineligible retail shareholders)Tuesday, 21 April 2026
ASX Settlement of New Shares under the Retail Entitlement OfferMonday, 27 April 2026
NZX Settlement and Allotment of New Shares under the Retail Entitlement Offer on NZX and ASXTuesday, 28 April 2026
Commencement of trading of New Shares issued under the Retail Entitlement Offer on NZX Tuesday, 28 April 2026
Commencement of trading of New Shares issued under the Retail Entitlement Offer on ASXWednesday, 29 April 2026
Despatch of holding statements in respect of New Shares issued under the Retail Entitlement OfferBy Wednesday, 29 April 2026
38

39
DEBT REFINANCING PROVIDING STABLE CAPITAL STRUCTURE
OVERVIEW OF KEY TERMS
DEBT REFINANCING
Overview
▪Debt facility of ~NZ$205m
1
▪~NZ$40m tranche maturing 30 June 2027, with the balance of the facility maturing 1
October 2028
Financial covenants
▪KMD sufficiency analysis supports FCCR and leverage covenants being met over the
term of the debt facility while executing on the Next Level strategy
Other key terms
▪Full net proceeds of the Equity Raising will be applied in permanent repayment (and a
corresponding and subsequent cancellation) of the existing facilities
▪New facilities subject to entry into definitive documentation (on the basis of an agreed
term sheet) by 30 June 2026
~$205M
TOTAL DEBT
CAPACITY
2.5
YEAR
FACILITY
REFINANCED DEBT FACILITY PROVIDES FUNDING STABILITY FOR KMD BRANDS TO EXECUTE STRATEGY
Refinanced debt facility provided by a majority of our
existing syndicate to support KMD Next Level
strategy
✓
✓
✓
Provides stability in KMD Brands funding
Expected to provide sufficient liquidity to execute on
Next Level transformation and fund working capital
1.Based on NZD / AUD exchange rate published by RBNZ as at 25 March 2026 and net offer proceeds of $62m. A$8.5m of the facility
will be unavailable until key covenant milestones are met.
1
UP TO

40
CREATING A STRONGER KMD BRANDS
1
2
3
4
5
KMD Brands has returned to growth under new leadership in 1H FY26
Substantial progress achieved against strategic initiatives
Significant upside remains with improved capabilities supporting identified growth opportunities
and stronger margins
High conviction in three pillars of strategy – 1) brand and product-led offence, 2) data-driven
intelligence and 3) sustainable profitability
Equity raise and bank facility refinancing to strengthen balance sheet and focus on ‘Next Level’
execution

KMD BRANDS
RIPCURL <

KEY RISKS
SECTION 5
Kathmandu’

41
SECTION 5
KEY RISKS
41

42
KEY RISKS
This section outlines the key risks that KMD has identified which are relevant to investors in the Offer. These risks may affect the future operating and financial performance of KMD and the KMD share
price. Like any investment, there are risks associated with an investment in KMD’s shares. Please note that this section does not (and does not purport to) set out all of the risks related to an investment in
KMD shares, the future operating or financial performance of KMD, the Offer or general market or industry risks. Some risks may be unknown and other risks, currently believed to be immaterial, could turn
out to be material.
Before deciding whether to invest in KMD shares, investors must make an independent assessment of the risks associated with the investment and should consider whether such an investment is suitable
for them, having regard to publicly available information (including this presentation), their personal circumstances and following consultation with a financial advisor or other professional advisor.
Capital sufficiency and banking support risk
KMD has undertaken a capital sufficiency modelling exercise to assist in determining the size of the Offer. Based on this model, KMD expects to have sufficient liquidity to execute its 'Next Level'
transformation strategy and to remove near-term funding and covenant pressures.
The Offer is also being conducted alongside refinancing of KMD's debt facilities. KMD has received commitments from members of its existing banking syndicate for a new bank debt facility, which is
conditional on receiving net proceeds of $50 million from an equity raising. The Offer is fully underwritten by Goldman Sachs New Zealand Limited and Forsyth Barr Group Limited (the Underwriters).
However, the underwriting agreement contains termination rights which are consistent with market practice for an offer of this nature. In certain circumstances, the Underwriters may terminate their
underwriting obligations under the underwriting agreement, in which case KMD may not receive the full amount of proceeds expected from the Offer, or the Offer may not proceed at all.
The events which may trigger termination of the underwriting agreement include events which are outside KMD's control, such as material adverse movements in financial markets, the occurrence of certain
hostilities or acts of terrorism, or a general moratorium on commercial banking activities. There is a risk that if the underwriting agreement is terminated or the Offer does not proceed or KMD raises less
than the amount sought, this may have a material adverse effect on KMD's financial position and ability to execute on its strategic objectives and KMD may not be able to access the new debt facility.
In addition, if KMD's financial performance deteriorates, there is a risk that KMD may breach its debt funding covenants or be unable to refinance its existing debt facilities on favourable terms, or at all.
Severe deterioration in macro-economic conditions could impact on the availability and/or utility of KMD's funding arrangements or otherwise impact upon KMD's liquidity.
A failure to secure or maintain adequate financing could limit KMD's ability to execute on its Next Level transformation strategy and could have a material adverse effect on KMD's financial position and
operations.

43
KEY RISKS (CONT.)
Project execution risk
KMD is currently executing its 'Next Level' transformation strategy, which involves strategic projects including cost restructuring, store network optimisation, digital platform upgrades and supply chain
improvements. There is a risk that these strategic projects are not executed as planned, exceed budget or timetable, or do not meet their objectives.
The design and delivery of new products and improvements to existing products will be a key driver of KMD's success, and there is always a risk that development of a new product or product feature may
not be successful or may take longer or be more expensive than anticipated.
KMD has established a Project Management Office to define and maintain project management standards, which is expected to reduce the likelihood of project failure over time by ensuring projects are
executed consistently and efficiently. Notwithstanding these measures, a failure to successfully execute strategic projects could have a material adverse effect on KMD's ability to achieve its financial targets
and growth aspirations.
Foreign exchange and interest rate risk
KMD operates across multiple geographies and currencies, which exposes the business to foreign exchange risk. Movements in exchange rates may affect KMD's cost of goods sold, sales and reported
financial results. KMD also sources products and raw materials internationally, and adverse currency movements may increase purchasing costs. KMD is exposed to interest rate movements on its debt
facilities. Increases in interest rates could increase KMD's financing costs and reduce profitability.
KMD monitors and manages its foreign exchange rate and interest rate exposures through careful order management based on demand and ongoing assessment of market conditions. KMD also seeks to
hedge its exposure to movements in foreign exchange rates and interest rates through entering into various derivatives. Despite these measures, significant adverse movements in exchange rates or
interest rates could have a material adverse effect on KMD's financial performance, particularly given current global volatility and uncertainty.
Economic and market conditions
KMD operates in the retail sector, which is sensitive to changes in general economic conditions. Factors such as inflation, interest rate movements, unemployment levels, consumer confidence and
discretionary spending patterns may adversely affect demand for KMD's products. During periods of economic uncertainty or downturn, consumers may reduce spending on discretionary items, including
the products that KMD sells, which could result in reduced sales volumes and increased promotional activity to stimulate demand.
The current macroeconomic environment, including elevated interest rates, cost-of-living pressures and heightened geopolitical tensions (including current hostilities in the Middle East), may continue to
adversely impact consumer spending as well as KMD’s operating costs. There is a risk that these conditions persist or worsen, which could have a material adverse effect on KMD's sales, margins and
financial performance.
KMD has a strategic objective to increase the share of its business conducted through digital channels, rather than physical stores. There is a risk that KMD may not be able to transition to digital channels
as quickly as anticipated, which may expose KMD to inflationary pressures on the cost of operating physical stores for longer than expected. There is also a risk that inflationary pressures result in the
margins achieved through digital channels being below expectations due to increased transition and digital channel operating costs.

44
KEY RISKS (CONT.)
Supply chain complexity / logistics disruption
KMD faces the risk of inefficient, costly and delayed delivery of inventory or materials due to single points of failure across the supply chain, including major international suppliers and single country
distribution centres, or logistics complexities such as container shortages. There is a risk that geopolitical events may disrupt key trade routes and producing regions, leading to supply chain interruptions,
increased costs and potential shortages of essential goods. Tariffs and geopolitical instability across countries within the supply chain (including current hostilities in the Middle East) have materially
increased both the likelihood and impact of this risk.
KMD has implemented mitigants including diversification of suppliers (by geographic location and ownership structure), continued transition away from China sourcing where practicable, maintenance of
strong logistics relationships, and third-party logistics warehousing diversification to provide flexibility in stock movements. KMD has also introduced new resource capabilities with a focus on procurement,
planning and supply chain. KMD holds business interruption insurance, which provides some degree of protection against business disruption. KMD is currently in discussions with its insurers regarding a
claim under its business interruption insurance in relation to disruption to the business arising during COVID-19, the outcome of which is not yet known. Despite these measures, supply chain disruptions
could have a material adverse effect on KMD's operating and financial performance.
Asset sales risk
Part of the ‘Next Level’ strategy involves the ongoing assessment of non-core assets that do not provide advantage to the three core brands, which may include the potential sale of non-core assets. There
are risks associated with any sale of assets by KMD, regardless of whether any such sale is successfully completed. These risks include that KMD may be unable to agree acceptable terms with a
purchaser for any proposed sale of assets, that KMD may not realise a fair value for any assets sold, that the time required by KMD’s board and management to progress any asset sale may negatively
affect their ability to focus on executing the remainder of the ‘Next Level’ strategy and that KMD may remain liable for various pre completion liabilities and historical matters even if such asset sale is
completed. Any proposed sale of assets may remain subject to conditions and approvals, including shareholder approval where required by the NZX Listing Rules or Companies Act. There can therefore be
no assurance that any sale of assets will result in a value enhancing outcome for KMD and its shareholders. Any proposed sale of assets may result in KMD incurring costs, and may have a negative effect
on KMD’s financial position and performance.
The board has separately received unsolicited, tentative and preliminary interest from third parties (including Stokehouse) to acquire Rip Curl. No formal proposals or offers have been received and the
board has no present intention to sell any of KMD’s core brands. As announced to NZX and ASX on 24 March 2026, the board received a transaction concept for the demerger of Rip Curl into a standalone
listed company and subsequent acquisition of Stokehouse, which the board carefully evaluated and determined was not in the best interests of shareholders. In response to the board’s decision not to
engage, Paul Naude, CEO of Stokehouse, has indicated Stokehouse may present a proposal to acquire Rip Curl for an unspecified price which would purportedly exceed the current market capitalisation of
KMD, subject to due diligence. No such proposal has been received and the board is not minded to provide access to due diligence to Stokehouse given the price, terms and executability of any such
transaction by Stokehouse remains uncertain.

45
KEY RISKS (CONT.)
Increased production costs or reduced access to key materials
KMD's sales and margins are exposed to movements in production costs, including materials, labour and factory costs. There is a risk of restricted availability of key resources and materials, which could
increase costs of production and impact lead times.
Geopolitical developments, including tariffs, have increased the financial impact of this risk by introducing additional fees and taxes on sourcing. Tariffs may also impact the sourcing of raw materials.
KMD has implemented mitigants including prebooking raw materials in advance, careful order management based on demand, close control of inventory orders, and ongoing monitoring of tariff impacts.
KMD is also considering moving certain sourcing away from affected regions and utilising external sourcing expertise. While these measures are in place, changes in the global trade environment or further
cost pressures could have a material adverse effect on KMD's operating and financial performance.
Cyber security and information systems availability
KMD relies on the performance, reliability and availability of its information technology, communication and other business systems. Cyber security threats to KMD's IT and eCommerce systems, including
DDoS attacks, malicious hacking, phishing, ransomware, theft and unauthorised disclosure, could lead to loss of core operating systems or data privacy and compliance breaches. The delivery of many of
KMD's products through digital platforms heightens the risk associated with cyber attacks or outages due to other causes, and the impact any disruption to information systems may have on the availability
of KMD's systems and services.
A cyber breach (whether by way of an external party or as a result of employee actions) could cause widespread operational and reputational damage. Recovery would be reputationally costly for KMD.
KMD has implemented controls including disaster recovery planning, system security measures, penetration testing and desktop exercises, multi-factor authentication, patch management, employee
training, and the removal of legacy systems. KMD has also established a Chief Information Security Officer role and implemented mandatory quarterly cyber training. Despite these measures, there is no
guarantee that KMD's systems will be protected from a cyber attack or other outages, and any such attack or outage could have a material adverse effect on KMD's reputation, financial performance and
operations.
Production quality issues
There is a risk of product quality or brand issues arising from supplier issues, including inconsistent quality, damage or defective products. In addition, outsourcing certain development and design
processes, while increasing speed and capacity, may introduce risks related to quality control.
KMD has implemented quality control and quality assurance processes, third-party inspections and maintains long-term relationships with suppliers. A failure to maintain product quality could result in
reputational damage, product returns or recalls, and/or financial recourse, which could have a material adverse effect on KMD's financial performance and brand reputation.

46
KEY RISKS (CONT.)
Inventory management
KMD has an ambition to grow online sales; however, it is important that investment in stock keeps pace with order demand, which increases the risk to KMD's ability to effectively plan for emerging
opportunities.
KMD has implemented group oversight of inventory buying processes, clear financial guardrails, critical path processes, and a Sales & Operations Planning process supported by data reports to optimise
demand and supply planning. Notwithstanding these measures, ineffective inventory management could have a material adverse effect on KMD's operating and financial performance.
Misaligned pricing and channel appropriateness
There is a risk that ineffective product pricing strategies and channel appropriateness could result in diminished competitiveness and reduced profitability, leading to potential market share loss. In addition,
KMD's go-to-market uplift and markdown management, while intended to improve profitability, may risk loss of sales momentum if not executed effectively. Competitors in KMD's markets are engaging in
heavy price discounting, which may impact sales performance.
KMD has implemented mitigants including strategic pricing reviews, market and competitor analysis, channel profitability analysis, and a customer insights project supported by external agency expertise. A
failure to implement effective pricing and channel strategies could have a material adverse effect on KMD's operating and financial performance.
Lack of connection in marketing/product offering with consumer
There is a risk that KMD's brand purpose may not resonate or remain relevant with consumers, leading to a lack of perceived desirability, benefit or value in KMD's products. This disconnect, whether due to
ineffective marketing or unmet customer expectations, could result in diminished sales and loss of market share. The retail industry is experiencing challenges, requiring KMD to keep adapting and
innovating. Everchanging expectations of retail brands have increased the likelihood of brand reputation risk.
KMD has implemented mitigants including brand health monitoring and customer insights surveys, focus on innovative products and customer experience to ensure ongoing brand relevance, a customer
insights project supported by external agency expertise, and investment in store segmentation and 'Store of the Future' concepts. A failure to maintain consumer connection could have a material adverse
effect on KMD's sales and financial performance.
Personnel risk
KMD's success depends on its ability to attract and recruit the right talent, upskill staff, and retain key employees with critical knowledge, experience, skills and intellectual property. The loss of key senior
executive personnel or an inability to attract and retain qualified employees could disrupt KMD's operations and adversely affect its ability to execute on its strategic objectives. This risk is heightened during
periods of organisational change. KMD has implemented retention and succession planning strategies and invests in employee engagement initiatives. Notwithstanding these measures, a failure to retain
key personnel or attract suitable replacements could have a material adverse effect on KMD's operations and financial performance.

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ADDITIONAL
1H FY26 DETAIL
APPENDIX A

48
STATUTORY TO UNDERLYING PROFIT AND LOSS
1.Statutory results include the impact of IFRS 16 leases. The impact of IFRS 16 is excluded from Underlying results.
2.Restructuring and organisational change was undertaken in 1H FY25 and 1H FY26. These one-off costs have been excluded from Underlying results.
3.IFRIC Software as a Service (“SaaS”) capitalisation adjustments have been excluded from Underlying results.
4.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.
GROUP1H FY261H FY25
SaaS
Amortisation of
SaaS
Amortisation of
NZ $mStatutory
IFRS 16
Leases
1
Restructuring
2
Capitalisation
Adjustments
3
Customer
Relationships
4
UnderlyingStatutory
IFRS 16
Leases
1
Restructuring
2
Capitalisation
Adjustments
3
Customer
Relationships
4
Underlying
SALES
505.4 - - - - 505.4 470.9 - - - - 470.9
GROSS PROFIT
287.1 - - - - 287.1 273.0 - - - - 273.0
Gross margin56.8%56.8%58.0%58.0%
OPERATING EXPENSES
(223.8) (57.4) 3.4 2.2 - (275.6) (220.3) (52.0) 2.2 0.9 - (269.1)
% of Sales44.3%54.5%46.8%57.2%
EBITDA
63.3 (57.4) 3.4 2.2 - 11.5 52.7 (52.0) 2.2 0.9 - 3.9
EBITDA margin %12.5%2.3%11.2%0.8%
EBIT
(1.7) (11.8) 3.4 2.2 1.6 (6.4) (12.7) (5.8) 2.2 0.9 2.1 (13.3)
EBIT margin %-0.3%-1.3%-2.7%-2.8%
NPAT
(13.1) (3.5) 2.4 1.5 1.1 (11.5) (20.7) 0.9 1.6 0.6 1.5 (16.1)

49
SEGMENT NOTE
1H FY261H FY251H FY26
SALES (NZ $'000)
Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
SALES per segment note291,423 176,072 37,953 - 505,448 278,487 156,831 35,627 - 470,945
SALES (Underlying)
291,423 176,072 37,953 - 505,448 278,487 156,831 35,627 - 470,945
EBITDA (NZ $'000)
Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBITDA per segment note43,226 29,023 (947) (8,006) 63,296 45,281 15,848 (2,223) (6,168) 52,738
IFRS 16 Leases
1
(24,690) (32,430) (293) - (57,413) (23,023) (28,704) (264) - (51,991)
Restructuring
2
1,969 1,042 178 228 3,416 1,318 37 250 639 2,244
SaaS Capitalisation Adjustments
3
- - - 2,165 2,165 - - - 875 875
Amortisation of Customer Relationships
4
- - - - - - - - - -
EBITDA (Underlying)20,505 (2,365) (1,062) (5,613) 11,465 23,576 (12,819) (2,237) (4,654) 3,866
EBIT (NZ $'000)
Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBIT per segment note11,853 (4,185) (1,319) (8,096) (1,747) 15,278 (18,727) (3,012) (6,250) (12,711)
IFRS 16 Leases
1
(4,796) (7,027) (16) - (11,839) (2,561) (3,347) 61 - (5,847)
Restructuring
2
1,969 1,042 178 228 3,416 1,318 37 250 639 2,244
SaaS Capitalisation Adjustments
3
- - - 2,165 2,165 - - - 875 875
Amortisation of Customer Relationships
4
1,521 - 106 - 1,627 2,024 - 104 - 2,128
EBIT (Underlying)10,547 (10,170) (1,051) (5,703) (6,378) 16,059 (22,037) (2,597) (4,736) (13,311)
1.Statutory results include the impact of IFRS 16 leases. The impact of IFRS 16 is excluded from Underlying results.
2.Restructuring and organisational change was undertaken in 1H FY25 and 1H FY26. These one-off costs have been excluded from Underlying results.
3.IFRIC Software as a Service (“SaaS”) capitalisation adjustments have been excluded from Underlying results.
4.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.

50
BALANCE SHEET
Balance Sheet
(NZ $m)
Jan 26
Jan 25
Jul 25
Inventories
274.1


303.7


254.0


Property, plant and equipment
74.4


83.6


75.3


Right of Use Asset (IFRS 16)
246.5


261.6


243.0


Intangible assets
647.9


671.1


626.1


Other assets
111.4


124.8


118.0


Total assets (excl. cash)
1,354.3


1,444.8


1,316.4


Net interest bearing liabilities and cash
(94.0)


(76.2)


(52.8)


Lease Liability (IFRS 16)
(287.9)


(293.2)


(287.8)


Other non-current liabilities
(97.9)


(105.9)


(94.4)


Current liabilities
(185.2)


(190.8)


(191.5)


Total liabilities (net of cash)
(665.0)


(666.1)


(626.5)


Net assets
689.3


778.7


689.9


50

51
CONSTANT CURRENCY PROFIT & LOSS
KMD BRANDS
Underlying
1
Underlying
at Constant Currency
2
NZ $m
3
1H FY261H FY25Var %1H FY261H FY25Var %
SALES505.4470.97.3%488.4470.93.7%
GROSS PROFIT287.1273.05.2%277.2273.01.5%
Gross margin56.8%58.0%56.8%58.0%
OPERATING EXPENSES(275.6)(269.1)2.4%(266.5)(269.1)(1.0%)
% of Sales54.5%57.2%54.6%57.2%
EBITDA11.53.9196.6%10.63.9171.8%
EBITDA margin %2.3%0.8%2.2%0.8%
EBIT(6.4)(13.3)52.1%(6.6)(13.3)50.4%
EBIT margin %-1.3%-2.8%-1.3%-2.8%
NPAT(11.5)(16.1)28.4%(11.6)(16.1)28.0%
1.Statutory results include the impact of IFRS 16 leases. The impacts of IFRS 16, restructuring, software as a service
accounting, the notional amortisation of customer relationships, impairment and onerous contracts have been excluded
from Underlying results. Refer to Appendix A for a reconciliation of Statutory to Underlying results.
2.Constant Currency Underlying results are calculated by consolidating 1H FY26 global local currency Underlying results at
1H FY25 FX conversion rates.
3.1H FY26 NZD/AUD conversion rate 0.881 (1H FY25 0.909), 1H FY26 NZD/USD conversion rate 0.581 (1H FY25 0.595).
51

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52
SELLING
RESTRICTIONS
APPENDIX B

53
SELLING RESTRICTIONS
This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New
Shares may not be offered or sold, in any country outside Australia and New Zealand except to the extent permitted below.
HONG KONG
WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been
authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the SFO).
No action has been taken in Hong Kong to authorise or register this document or to permit the distribution of this document or any documents issued in connection with it. Accordingly, the New Shares have
not been and will not be offered or sold in Hong Kong other than to "professional investors" (as defined in the SFO and any rules made under that ordinance).
No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or elsewhere
that is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to New
Shares that are or are intended to be issued or sold only to persons outside Hong Kong or only to professional investors.
No person allotted New Shares may sell, or offer to sell, such securities in circumstances that amount to an offer to the public in Hong Kong within six months following the date of issue of such securities.
The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this
document, you should obtain independent professional advice.
NORWAY
This document has not been, and will not be, registered with or approved by Finanstilsynet (the Financial Supervisory Authority of Norway) and it does not constitute a prospectus under the Prospectus
Regulation (Regulation (EU) 2017/1129) (the Prospectus Regulation) or the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document may not be made available, nor may the
New Shares be offered for sale, directly or indirectly, in Norway other than under circumstances that are exempted from the prospectus requirements under the Prospectus Regulation and the Norwegian
Securities Trading Act. Any offering of New Shares in Norway is limited to persons who are "qualified investors" as defined in the Prospectus Regulation. Only such persons may receive this document and
they may not distribute it or the information contained in it to any other person.

54
SELLING RESTRICTIONS (CONT.)
SINGAPORE
This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly,
this document and any other document or materials in connection with the offer or sale, or invitation for subscription or purchase, of New Shares, may not be issued, circulated or distributed, nor may the
New Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore except (i) to an institutional investor (as defined in
Section 4A of the Securities and Futures Act 2001 of Singapore, as modified or amended from time to time (the SFA)) pursuant to Section 274 of the SFA or (ii) to an accredited investor (as defined in
Section 4A of the SFA) pursuant to and in accordance with the conditions specified in Section 275 of the SFA. This document has been given to you on the basis that you are (i) an "institutional investor" or
(ii) an "accredited investor". In the event that you are not an investor falling within any of the categories set out above, please return this document immediately. You may not forward or circulate this
document to any other person in Singapore. Any offer is not made to you with a view to the New Shares being subsequently offered for sale to any other party. There are on-sale restrictions in Singapore
that may be applicable to investors who acquire the New Shares. As such, investors are advised to acquaint themselves with the SFA provisions relating to resale restrictions in Singapore and comply
accordingly.
UNITED KINGDOM
Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of the
Public Offers and Admissions to Trading Regulations 2024 (the POATRs) and Prospectus Rules: Admission to Trading on a Regulated Market sourcebook of the FCA Handbook) has been published or is
intended to be published in respect of the New Shares.
This document is issued on a confidential basis to "qualified investors" (as defined in paragraph 15 of the Schedule 1 to the POATRs) in the United Kingdom, and the New Shares may not be offered or sold
in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances falling within an exemption set out in Schedule 1 to the POATRs. This
document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom.
Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000, as amended (FSMA)) received in connection with the issue
or sale of the New Shares has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which
section 21(1) of the FSMA does not apply to the Company.
In particular, this document is being distributed only to, and is directed at, persons who are qualified investors (as specified above) (i) who have professional experience in matters relating to investments
falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (FPO), (ii) who fall within the categories of persons referred to in
Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together Relevant Persons). The investment to
which this document relates is available only to Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document.

---

KMD BRANDS LIMITED


INTERIM REPORT 2026

KMD BRANDS LIMITED - INTERIM REPORT 2026
2
DIRECTORS’ REPORT
The Directors of KMD Brands Limited present the Interim Report for the Company and its controlled entities for the half year ended
31 January 2026.
Review of Operations
Group sales for the interim period of $505.4 million are 7.3% above last year, with solid growth achieved in both the direct-to-
consumer and wholesale channels. Kathmandu has led the Group sales momentum, achieving strong sales growth throughout the
first half in both Australia and New Zealand. Rip Curl wholesale sales outperformed the direct-to-consumer channel, with strong
wholesale demand in Europe and North America. Oboz wholesale sales grew strongly, supported by closeout activity and strong in-
season buying from key accounts.
Group gross margin decreased -1.2% of sales below last year to 56.8%. In a promotional marketplace, all brands balanced sales
growth with gross margin achievement, while optimising inventory composition and selling through aged inventory.
Oper
ating expenses were lower than the first half of last year on a constant currency basis, with a Next Level strategic cost reset
helping to offset strategic growth investments and continued global cost pressures. The year-on-year impact of global currency
fluctuation has increased total reported operating expenses.
At
31 January 2026 the Group had a net debt position of $94.0 million. As part of a longer-term refinance plan, the Group has
reduced its total syndicated bank facilities to approximately NZ$283m, consisting of an A$207m and NZ$43m multi-currency
revolving facility.
Net
working capital was $13.4 million lower than 31 January 2025, with a significant reduction in inventory from that reported as at
31 January 2025, indicating that inventory positions continue to reduce towards optimal levels. Inventory positions are higher than
31 July 2026 due to the seasonality inventory cycle of the business.
No
interim dividend has been declared.
Seasonality
Due to the seasonal nature of the Group’s activities, the activities in the second half of the year historically provide a larger portion of
the sales and net profit for the full year.
Si
gned in accordance with a resolution of the Directors
:
David Kirk Brent Scrimshaw
Director Managing Director and Group CEO

KMD BRANDS LIMITED - INTERIM REPORT 2026

3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025





NZ$’000 NZ$’000 NZ$’000

Restated

Sales 6 505,448 470,945 989,015
Cost of sales (218,374) (197,932) (429,755)
Gross profit 287,074 273,013 559,260

Other income 776 1,146 3,169
Selling and marketing expenses 7 (134,093) (133,730) (283,884)
Administration and general expenses 7 (90,461) (87,691) (182,636)
Intangible asset impairment expense - - (45,363)
(223,778) (220,275) (508,714)
Earnings before interest, tax, depreciation, and amortisation 63,296 52,738 50,546

Depreciation and amortisation 7 (65,043) (65,449) (131,077)
Earnings before interest and tax (1,747) (12,711) (80,531)

Finance income 426 455 2,772
Finance expenses (13,504) (13,996) (26,901)
Finance costs (net) 7 (13,078) (13,541) (24,129)

(Loss) before income tax (14,825) (26,252) (104,660)

Income tax benefit 1,742 5,548 11,081

(Loss) after income tax (13,083) (20,704) (93,579)



(Loss) for the period attributable to:


Shareholders of the company

(13,922) (21,540) (95,058)
Non-controlling interest

839 836 1,479

Other comprehensive income that may be reclassified subsequently to (loss):
Movement in cash flow hedge reserve

(6,665) 4,380 2,116
Movement in foreign currency translation reserve

19,897 10,010 1,022
Other comprehensive income for the period, net of tax 13,232 14,390 3,138



Total comprehensive income/(loss) for the period 149 (6,314) (90,441)



Total comprehensive (loss) for the period attributable to:


Shareholders of the company

(1,064) (7,155) (91,875)
Non-controlling interest

1,213 841 1,434



Basic earnings per share

(2.0) cps (3.0) cps (13.4) cps
Diluted earnings per share

(2.0) cps (3.0) cps (13.4) cps
Weighted average basic ordinary shares outstanding (‘000) 711,667 711,667 711,667
Weighted average diluted ordinary shares outstanding (‘000)

735,848 727,269 730,386

KMD BRANDS LIMITED - INTERIM REPORT 2026

4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Share
Capital
Cash Flow
Hedge
Reserve
Foreign
Currency
Translation
Reserve
Share
Based
Payments
Reserve
Other
Reserves
Retained
Earnings
Non-
controlling
Interest
Total
Equity



NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Balance as at 31 July 2024 629,383 1,684 23,019 824 (47) 125,067 5,748 785,678

(Loss)/profit after tax - - - - - (95,058) 1,479 (93,579)
Other comprehensive income - 2,116 1,067 - - - (45) 3,138
Dividends paid - - - - - - - -
Issue of share capital - - - - - - - -
Share based payment expense - - - 391 - - - 391
Deferred tax on share-based
payment transactions
- - - 45 - - - 45
Lapsed share options - - - (154) - 154 - -
Amounts transferred to initial
carrying amount of hedged items
- (4,450) - - - - - (4,450)
Dividends paid to non-controlling
interest
- - - - - - (1,281) (1,281)
Balance as at 31 July 2025 629,383 (650) 24,086 1,106 (47) 30,163 5,901 689,942

(Loss)/profit after tax - - - - - (13,922) 839 (13,083)
Other comprehensive income - (6,665) 19,523 - - - 374 13,232
Dividends paid - - - - - - - -
Share based payment expense - - - 302 - - - 302
Lapsed share options - - - (241) - 241 - -
Deferred tax on share-based
payment transactions
- - - 86 - - - 86
Amounts transferred to initial
carrying amount of hedged items
- (492) - - - - - (492)
Dividends paid to non-controlling
interest
- - - - - - (658) (658)
Balance as at 31 January 2026 629,383 (7,807) 43,609 1,253 (47) 16,482 6,456 689,329

KMD BRANDS LIMITED - INTERIM REPORT 2026

5

CONSOLIDATED BALANCE SHEET

Note Unaudited
As at
31 January
2026
Unaudited
As at
31 January
2025
Audited
As at
31 July
2025




NZ$’000 NZ$’000 NZ$’000
ASSETS

Current assets

Cash and cash equivalents

27,433 26,928 34,284
Trade and other receivables
9
79,997 79,147 92,291
Inventories
10
274,055 303,687 254,039
Derivative financial instruments 14 41 10,084 2,217
Current tax asset 9,151 16,302 3,594
Other current assets 1,290 2,084 1,263
Total current assets 391,967 438,232 387,688

Non-current assets
Trade and other receivables 9 2,585 2,376 2,614
Property, plant, and equipment 74,391 83,634 75,254
Intangible assets 11 647,864 671,136 626,099
Derivative financial instruments 14 68 - 123
Deferred tax assets 18,354 14,708 15,849
Right-of-use assets 12 246,454 261,592 243,025
Total non-current assets 989,716 1,033,446 962,964

Total assets 1,381,683 1,471,678 1,350,652

LIABILITIES
Current liabilities
Trade and other payables 174,838 190,208 188,670
Derivative financial instruments 14 9,948 16 2,225
Current tax liabilities 412 572 588
Lease liabilities 12 89,699 86,467 88,157
Total current liabilities 274,897 277,263 279,640

Non-current liabilities
Trade and other payables 22,875 17,051 23,488
Interest bearing liabilities 13 121,406 103,089 87,085
Deferred tax 74,759 88,855 70,864
Derivative financial instruments 248 - -
Lease liability 12 198,169 206,723 199,633
Total non-current liabilities 417,457 415,718 381,070

Total liabilities 692,354 692,981 660,710

Net assets 689,329 778,697 689,942

EQUITY
Contributed equity - ordinary shares 629,383 629,383 629,383
Reserves 37,008 40,330 24,495
Retained earnings 16,482 103,681 30,163
Non-controlling interest 6,456 5,303 5,901
Total equity 689,329 778,697 689,942

KMD BRANDS LIMITED - INTERIM REPORT 2026

6

CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025







NZ$’000 NZ$’000 NZ$’000
Cash flows from operating activities

Cash was provided from:

Receipts from customers 519,815 480,804 986,964
Government grants received - 2 2
Interest received 426 455 948
Income tax received - 3 8,279
520,241 481,264 996,193
Cash was applied to:
Payments to suppliers and employees 478,853 417,350 832,950
Income tax paid 2,779 4,722 9,990
Interest paid 12,984 13,428 27,091
494,616 435,500 870,031

Net cash inflow from operating activities 25,625 45,764 126,162

Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant, and equipment - 35 120
- 35 120
Cash was applied to:
Purchase of property, plant, and equipment 8,648 7,784 13,132
Purchase of intangibles 4,484 6,321 11,446
13,132 14,105 24,578

Net cash (outflow) from investing activities (13,132) (14,070) (24,458)

Cash flows from financing activities
Cash was provided from:
Proceeds of borrowings 148,423 128,085 260,332
148,423 128,085 260,332
Cash was applied to:
Dividends paid 658 1,286 1,281
Repayment of borrowings 120,223 119,099 266,909
Repayment of lease liabilities 48,640 46,531 93,284
169,521 166,916 361,474

Net cash (outflow) from financing activities (21,098) (38,831) (101,142)

Net (decrease) / increase in cash held (8,605) (7,137) 562

Opening cash and cash equivalents 34,284 33,948 33,948
Effect of foreign exchange rates 1,754 117 (226)
Closing cash and cash equivalents 27,433 26,928 34,284

KMD BRANDS LIMITED - INTERIM REPORT 2026

7

RECONCILIATION OF NET (LOSS) AFTER TAXATION WITH CASH INFLOW FROM OPERATING ACTIVITIES

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000



(Loss) after income tax (13,083) (20,704) (93,579)

Movement in working capital:
(Increase) / decrease in trade and other receivables 16,549 10,412 (3,506)
(Increase) / decrease in inventories (8,503) (35,635) 11,359
(Increase) / decrease in other current assets 11 (46) 764
Increase / (decrease) in trade and other payables (23,286) 30,906 28,509
Increase / (decrease) in tax liability (6,024) (7,186) 5,490
(21,253) (1,549) 42,616
Add non-cash items:
Depreciation of property, plant, and equipment 11,386 11,907 23,346
Amortisation of intangibles 8,081 7,398 16,027
Depreciation of right-of-use assets 45,576 46,144 91,704
Impairment/ (reversal of impairment) of assets (1,467) 165 60,812
Foreign currency translation of working capital balances (6,250) 5,148 2,977
Movement in deferred taxation 1,503 (3,082) (18,282)
Employee share-based remuneration 302 226 391
Loss on disposal of property, plant, and equipment and intangibles 830 111 150
59,961 68,017 177,125

Cash inflow from operating activities 25,625 45,764 126,162

KMD BRANDS LIMITED - INTERIM REPORT 2026

8

1 GENERAL INFORMATION
KMD Brands Limited (the Company) and its subsidiaries (together the Group) is a designer, marketer, retailer and wholesaler
of apparel, footwear and equipment for surfing and the outdoors. It operates primarily in New Zealand, Australia, North
America, Europe, South East Asia and Brazil.
The Company is a limited liability company incorporated and domiciled in New Zealand. KMD Brands Limited is a company
registered under the Companies Act 1993 and is an FMC reporting entity under Part 7 of the Financial Markets Conduct Act
2013. The address of its registered office is 223 Tuam Street, Central Christchurch, Christchurch.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 31 March 2026,
and have been reviewed, not audited.
2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These general-purpose consolidated interim financial statements for the six months ended 31 January 2026 have been
prepared in accordance with NZ IAS 34, Interim Financial Reporting. In complying with NZ IAS 34, these consolidated interim
financial statements also comply with IAS 34.
These consolidated interim financial statements do not include all the notes of the type normally included in an annual financial
report. Accordingly, this report should be read in conjunction with the audited consolidated financial statements of KMD Brands
Limited for the year ended 31 July 2025 which have been prepared in accordance with the New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
The Group is designated as a profit-oriented entity for financial reporting purposes. The consolidated interim financial
statements are presented in New Zealand dollars, which is the Group’s presentation currency.
3 PRIOR PERIOD RESTATEMENT
During the previous financial year the Group identified an error in the Rip Curl cost of sales and expense classification in the
previously reported consolidated interim financial statements for the half year ended 31 January 2025. Following an accounting
system change at the Group’s wetsuit manufacturer a mapping error was identified whereby certain production labour and
overhead costs were mapped to operating expenses rather than cost of sales. The error was corrected in the consolidated
financial statements for the year ended 31 July 2025, and has been corrected for the 31 January 2025 comparatives during the
current year. As a result, the prior period cost of sales increased by $2,477,000 with a corresponding decrease in gross profit,
$100,000 decrease in selling and marketing expenses and $2,377,000 decrease in administration and general expenses.
There was no impact on the consolidated balance sheet, consolidated statement of changes in equity, consolidated statement
of cash flows and earnings per share. Further, there was no impact on the Group’s EBITDA or net profit. The expenses note
has also been updated to correct the classification error.
4 ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared using the same accounting policies and methods of
computation as those used in the audited consolidated financial statements of KMD Brands Limited for the year ended 31 July
2025.
Use of non-GAAP disclosures
At times non-Generally Accepted Accounting Practice (GAAP) disclosures have been used in the consolidated interim financial
statements. These disclosures have been included as they are key measurement criteria on which the Group and operating
segments are reviewed by the Group Chief Executive Officer, Group Executive Management team and the Board of Directors.
The following non-GAAP measures are relevant to the understanding of the Group's financial performance:
• Earnings before interest, tax, depreciation and amortisation (EBITDA) represents earnings before income taxes
excluding interest income, interest expense, depreciation, and amortisation, as reported in the consolidated interim
financial statements.
• Earnings before interest and tax (EBIT) represents EBITDA less depreciation and amortisation.
• Net debt represents cash and cash equivalents less interest-bearing liabilities. Net debt does not include lease
liabilities.
Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other entities. The non-GAAP information within the consolidated
interim financial statements is subject to review procedures.
New standards first applied in the period
There are no new standards first applied in the period.

KMD BRANDS LIMITED - INTERIM REPORT 2026

9

Standards, interpretations, and amendments to published standards that are not yet effective
NZ IFRS 18 Presentation and Disclosure in Financial Statements is applicable to the Group from 1 August 2027. NZ IFRS 18
will supersede NZ IAS 1 Presentation of Financial Statements and is intended to improve comparability and transparency in the
presentation of financial statements. The Group’s assessment of the impact remains ongoing.
There are no other standards or amendments published but not yet effective that are expected to have a significant impact.
5 CLIMATE CHANGE RISK
The Group’s operations may be impacted by future climate change. These impacts may be physical (e.g. severe or unusual
weather patterns and events) or transitional (e.g. changes to government regulations or customer and supplier needs and
demands).
The Group regularly assesses its operating environment to monitor its exposure to risk, including climate related risk.
Consideration has been given in these consolidated interim financial statements to the impact of future climate change on the
useful lives of the Group’s property, plant, and equipment, the inclusion of expected renewals in the lease term for right-of-use
assets, and the cost of sustainability linked loans. The identified climate-related risks and opportunities including both physical
and transitional impacts have been considered as part of the above accounting judgements and estimates.
In November 2025 the Group published its second Climate-Related Disclosure (CRD) prepared in accordance with the
Aotearoa New Zealand Climate Standards (NZ CS). The CRD covers the 12 month period ended 31 July 2025 and should be
read in conjunction with the Group’s financial year 2025 Annual Integrated Report.
6 SALES

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000
Sale of goods

499,609 465,599 978,805
Royalty revenue

5,246 5,032 9,326
Commission revenue

593 314 884
505,448 470,945 989,015
7 EXPENSES

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000
Restated
NZ$’000
Loss before tax includes the following expenses:

Depreciation of property, plant, and equipment

11,386 11,907 23,346
Amortisation of intangibles

8,081 7,398 16,027
Depreciation of right-of-use assets

45,576 46,144 91,704
Impairment/ (reversal of impairment) of assets

(1,467) 165 60,812
Employee entitlements expense

123,664 119,143 236,040
Rental expense

12,373 13,396 26,764

Finance costs


Interest income

(426) (455) (948)
Interest expense on interest bearing liabilities

4,603 4,882 9,665
Interest on lease liabilities

6,768 6,710 13,585
Other finance costs

1,925 1,791 3,651
Net exchange loss/ (gain) on foreign currency

208 613 (1,824)
13,078 13,541 24,129
Other finance costs relate to facility fees on banking arrangements.

KMD BRANDS LIMITED - INTERIM REPORT 2026

10

8 SEGMENTAL INFORMATION
The Group has three operating segments representing the brands owned by the Group and a Corporate segment. These
operating segments have been determined based on the reports reviewed by the Group Chief Executive Officer and Group
Executive Management team.
• Rip Curl - designer, manufacturer, wholesaler and retailer of surfing equipment and apparel.
• Kathmandu - designer, retailer and wholesaler of apparel, footwear and equipment for outdoor travel and adventure.
• Oboz - designer, wholesaler and online retailer of outdoor footwear.
The Corporate segment represents group costs, holding companies and consolidation eliminations and constitutes other
business activities that do not fall within the brand segments.
The default basis of allocating shared costs is percentage of revenue with other bases being used where appropriate.
31 January 2026 Rip Curl Kathmandu Oboz Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Total segment sales 291,423 176,072 39,239 - 506,734
Sales to internal customers - - (1,286) - (1,286)
Sales to external customers 291,423 176,072 37,953 - 505,448
EBITDA 43,226 29,023 (947) (8,006) 63,296
Depreciation and amortisation (31,373) (33,208) (372) (90) (65,043)
EBIT 11,853 (4,185) (1,319) (8,096) (1,747)
Income tax benefit / (expense) (4,949) (3,096) 240 9,547 1,742

Total segment assets 716,329 577,082 72,831 15,441 1,381,683
Total assets include:
Non-current assets 494,415 456,267 37,560 1,474 989,716
Additions to non-current assets 46,457 50,068 4,969 (1,988) 99,506

Total segment liabilities 301,490 250,182 29,059 111,623 692,354

31 January 2025 Rip Curl Kathmandu Oboz Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Total segment sales 278,487 156,838 36,436 - 471,761
Sales to internal customers - (7) (809) - (816)
Sales to external customers 278,487 156,831 35,627 - 470,945
EBITDA 45,281 15,848 (2,223) (6,168) 52,738
Depreciation and amortisation (30,003) (34,575) (789) (82) (65,449)
EBIT 15,278 (18,727) (3,012) (6,250) (12,711)
Income tax benefit / (expense) (4,988) 5,011 596 4,929 5,548

Total segment assets 747,067 592,395 117,015 15,201 1,471,678
Total assets include:
Non-current assets 499,277 446,359 83,715 4,095 1,033,446
Additions to non-current assets 27,661 27,165 72 3,169 58,067

Total segment liabilities 325,826 244,748 30,273 92,134 692,981

KMD BRANDS LIMITED - INTERIM REPORT 2026

11

9 TRADE AND OTHER RECEIVABLES

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Current

Trade receivables

56,679 58,328 67,624

Allowance for expected credit losses

(3,549) (6,048) (3,954)

Prepayments

14,418 17,184 17,434

Other receivables

12,449 9,683 11,187



79,997 79,147 92,291


Non-current



Other debtors

2,585 2,376 2,614



10 INVENTORIES

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000



Raw materials and consumables

6,195 6,112 7,751

Work in progress

1,062 1,396 698

Trading inventory

232,825 245,058 216,800

Goods in transit

33,973 51,121 28,790



274,055 303,687 254,039



Inventory has been reviewed for obsolescence and a provision of $4,801,000 (January 2025: $5,361,000) has been made.

KMD BRANDS LIMITED - INTERIM REPORT 2026

12

11 INTANGIBLE ASSETS
Carrying value of intangible assets
The Group market capitalisation is materially below the carrying value of net assets. The Group has made a net loss after
income tax of $13,083,000 for the period but historically the second half of the financial year is more profitable and generates
more cash flow. Accordingly, the short-term results are not considered an indicator of impairment. In addition, our fair value
less costs of disposal model continue to provide sufficient headroom at both Group and Brand cash generating unit levels. The
consolidated interim financial statements do not include all intangible asset assessment information and disclosures required in
the annual consolidated financial statements therefore this note should be read in conjunction with the Group’s annual
consolidated financial statements as at 31 July 2025. No impairment exists as at 31 January 2026.

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Opening net book value
626,099 666,859 666,859
Net additions
4,579 7,674 22,491
Transfers
32 (13) 1,092
Amortisation
(8,081) (7,398) (16,027)
Impairment - - (45,363)
Exchange differences
25,235 4,014 (2,953)
Closing net book value
647,864 671,136 626,099
12 LEASES
Right-of-use assets
The movements in right of use assets were as follows:

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Opening net book value 243,025 262,571 262,571
Additions and modifications to right-of-use asset 40,498 42,608 86,318
Depreciation for the period (45,576) (46,144) (91,704)
(Impairment)/ reversal of impairment for the period 1,188 (165) (14,865)
Foreign exchange 7,319 2,722 705
Closing net book value 246,454 261,592 243,025

Lease liabilities
The movements in lease liabilities were as follows:

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Opening lease liabilities 287,790 294,176 294,176
Additions and modifications to lease liabilities 40,622 42,859 85,881
Interest expense on lease liabilities 6,768 6,710 13,585
Repayment of lease liabilities (including interest) (55,531) (53,491) (106,431)
Foreign exchange 8,219 2,936 579
Closing lease liabilities 287,868 293,190 287,790

KMD BRANDS LIMITED - INTERIM REPORT 2026

13

13 INTEREST BEARING LIABILITIES
Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Interest bearing liabilities

121,406 103,089 87,085

Group Facility Agreement
The Group has a multi-option syndicated facility, which consists of an AU$207 million multi-currency revolving facility and a
NZ$43 million multi-currency revolving facility. Both facilities are sustainability linked with targets such as reducing greenhouse
gas emissions, continued B Corp certification, and improving transparency within the Group supply chain, including the
wellbeing and labour conditions of workers, and environmental metrics. All facilities are repayable in full on 15 April 2027.
Interest is payable based on the BKBM rate (NZD borrowings), the BBSY rate (AUD borrowings), SOFR rate (US borrowings)
or the applicable short-term rate for interest periods less than 30 days, plus a margin of between 1.05% - 1.31%. The debt is
secured by the assets of the guaranteeing group in accordance with the Security Trust Deed dated 25 October 2019 as
amended 12 May 2023. The guaranteeing group comprises entities operating in New Zealand, Australia, North America and
the United Kingdom. The carrying value of the assets held by the guaranteeing group are $1,311,643,000 (January 2025:
$1,384,948,000).
The covenants entered into by the Group require specified calculations of Group earnings before interest, tax, depreciation and
amortisation (EBITDA) plus lease rental costs to exceed total fixed charges (net interest expense and lease rental costs) at half
year and year end reporting periods. EBITDA must be no less than a specified proportion of total net debt at half year and year
end reporting periods. The calculations of these covenants are specified in the bank facility agreement dated 25 October 2019
as amended from time to time.
In previous reporting periods the Group obtained the following covenant amendments for the 2026 interim period:
• A reduction of the fixed charge cover ratio.
• A total net debt cap was added to the leverage ratio covenant, which provided allowance on the leverage ratio to
exceed 2.5x EBITDA provided net debt at January 2026 was below $125,000,000.
The Group has complied with the banking covenants at all measurement points during the period.
The current interest rate, prior to hedging, on the syndicated facility loans is 3.88% - 4.96% (2025: 5.50% - 5.51%).

14 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

(a) Financial risk factors

The Group’s activities expose it to a variety of financial risks, market risk (including currency risk and interest rate risk), credit
risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses derivative financial
instruments such as foreign exchange contracts and interest rate swaps to manage certain risk exposures. Derivatives are
exclusively used for economic hedging purposes, i.e. not as trading or other speculative instruments, however not all derivative
financial instruments qualify for hedge accounting.
Risk management is carried out based on policies approved by the Board of Directors. The Group treasury policy provides
written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages this
risk by actively managing working capital and ensuring flexibility in funding arrangements. Refer to note 13 for details of the
funding arrangements in place as at 31 January 2026.
The consolidated interim financial statements do not include all financial risk management information and disclosures required
in the annual consolidated financial statements; they should be read in conjunction with the Group’s annual consolidated
financial statements as at 31 July 2025. There have been no changes in the risk management department or in any risk.

KMD BRANDS LIMITED - INTERIM REPORT 2026

14

(b) Fair value estimation

The only financial instruments held by the Group that are measured at fair value are over-the-counter derivatives. These
derivatives have all been determined to be within level 2 (for the purposes of NZ IFRS 13) of the fair value hierarchy as all
significant inputs required to ascertain the fair value of these derivatives are observable.
There were no changes in valuation techniques during the period.
The following methods and assumptions were used to estimate the fair values for each class of financial instrument.
Trade debtors, trade creditors and bank balances
The carrying value of these items is equivalent to their fair value.
Term liabilities
The fair value of the Group's term liabilities is approximately carrying value.
Foreign exchange contracts and interest rate swaps
The forward foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active
market. Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves. The effects of
discounting are insignificant for these derivatives.
Guarantees and overdraft facilities
The fair value of these instruments is estimated on the basis that management do not expect settlement at face value to arise.
The carrying value and fair value of these instruments is approximately nil. All guarantees are repayable on demand.

The following table presents the Group’s assets and liabilities that are measured at fair value at balance date:


Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Assets


Current derivative financial instruments assets

41
10,084
2,217
Non-current derivative financial instruments assets

68
-
123
Total assets

109
10,084
2,340

Liabilities




Current derivative financial instruments

9,948
16
2,225
Non-current derivative financial instruments

248
-
-
Total liabilities

10,196
16
2,225

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

Unaudited
Six Months
Ended
31 January
2026
Unaudited
Six Months
Ended
31 January
2025
Audited
Year
Ended
31 July
2025


NZ$’000 NZ$’000 NZ$’000

Property, plant, and equipment

1,095
280
4,405
Intangible assets

1,750
1,443
8,800
Intangible asset commitments as at 31 January 2026 relate to various projects across the Group to upgrade information
technology software and systems.

KMD BRANDS LIMITED - INTERIM REPORT 2026

15

16 CONTINGENT LIABILITIES
The Group is subject to litigation incidental to its business, none of which is expected to be material. No material provision
has been made in the Group’s consolidated financial statements in relation to any current litigation and the Directors believe
that such litigation will not have a material effect on the Group’s consolidated financial position, results of operations or cash
flows. There are $2,559,000 of contingent liabilities as at 31 January 2026 (31 January 2025: nil , 31 July 2025: $2,659,000).

The most material contingent liability relates to ongoing discussions with the French customs duty authority in relation to the
customs value of imported goods. Based on legal advice a provision of €208,000 (31 January 2025: nil, 31 July 2025:
€150,000) has been recognised in relation to this matter. Management has assessed further aspects of this matter and
believes that the likelihood of any additional significant outflow of resources is possible but not probable, and accordingly, no
additional provision has been recognised. Based on currently available information, the potential financial impact of this
contingent liability could be in the range of zero to €1,300,000. The timing of any potential outflow is uncertain and dependent
on the resolution. The Group continues to monitor the matter as additional information becomes available.

17 CONTINGENT ASSETS
The Group has submitted an MDBI insurance claim arising from COVID public health authority mandates. The claim has been
lodged with the Group’s insurer and is currently under negotiation. Based on legal advice received to date and the terms of the
insurance policy, the directors consider it probable that economic benefits will be received by the Group from settlement of this
claim. However, at the reporting date the amount recoverable cannot yet be measured reliably, as negotiations are ongoing.
Accordingly, no asset has been recognised in these financial statements in respect of the insurance recovery, however, the
claim is considered material to the Group’s financial position. While management expects that a recovery is probable, the
timing and quantum of any settlement remains uncertain and will depend on the outcome of negotiations and agreement on the
extent of covered losses. The Group will recognise an insurance recovery only when its realisation becomes virtually certain, in
accordance with the requirements of NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

There are no other contingent assets as at 31 January 2026 (January 2025: nil).
18 RELATED PARTY DISCLOSURES
No amounts owed to related parties have been written off or forgiven during the period.
19 EVENTS OCCURRING AFTER BALANCE DATE
On 31 March 2026, the Group announced an approximately NZ$65.3 million equity raise, comprising:
• a fully underwritten placement of new fully paid ordinary shares to eligible institutional shareholders and new
institutional investors to raise approximately NZ$6.8 million; and
• a fully underwritten 1 for 0.73 pro-rata accelerated non-renounceable entitlement offer of new shares to eligible
shareholders to raise approximately NZ$58.5 million.
The offer will be conducted at an offer price of NZ$0.06 per share, representing a:
• 47.1% discount to the theoretical ex-rights price of NZ$0.111; and
• 69.2% discount to KMD’s closing price of NZ$0.195 on NZX on Wednesday 25 March 2026.
Approximately 1,087.8 million new shares are to be issued under the offer, representing approximately 152.8% of the existing
shares on issue.
The Group has also reached an agreement with its banking syndicate to renew its multi-option syndicated facility effective by
30 June 2026 subject to the Group receiving equity raise offer proceeds (net of fees and transaction costs) of NZ$50 million .
The renewed facility would consist of an up to AU$155 million multi-currency revolving facility and a up to NZ$29 million multi-
currency revolving facility with NZ $40 million expiring in 1 year and the remainder expiring in 2.5 years from the effective date
of renewal. The Group would also remain subject to fixed charge cover and leverage ratio covenants.
There are no other events after balance date which materially affect the information within the interim consolidated financial
statements.

KMD BRANDS LIMITED - INTERIM REPORT 2026

16

STATUTORY INFORMATION

GROUP STRUCTURE
KMD Brands Limited owns 100% of the following companies unless otherwise stated:
Kathmandu Group Limited
KMD Brands Investments Limited
KMD Brands Finance (NZ) Limited
KMD Brands Finance (AU) Limited
KMD Brands Managed Services (NZ) Limited
KMD Brands Managed Services (AU) Pty Limited
Kathmandu Limited
Kathmandu Pty Limited
Kathmandu (U.K. ) Limited
Kathmandu US Holdings LLC
Oboz Footwear LLC
Barrel Wave Holdings Pty Ltd
Rip Curl Group Pty Ltd
Rip Curl International Pty Ltd
PT Jarosite
Rip Curl Pty Ltd
Onsmooth Thai Co Ltd
Rip Curl (Thailand) Ltd (G roup owns 50%)
Ozmosis Pty Ltd
Rip Curl Japan Co., Ltd
Curl Retail No 1. Pty Ltd
RC Surf NZ Limited
Rip Curl Finance Pty Ltd
Rip Curl Europe S.A.S
Rip Curl Spain S.A.U
Rip Curl Suisse S.A.R.L
Rip Surf - Artigos De Desporto, Unipessoal, LDA
Rip Curl UK Ltd
KMD Brands Italy SRL
KMD Brands Germany GmbH
Rip Curl Nordic AB
Rip Curl Inc
Rip Curl Canada Inc
Rip Curl Brazil LTDA

DIRECTORS’ DETAILS
David Kirk Chairman
Brent Scrimshaw Managing Director and Group CEO
Philip Bowman Non-Executive Director
Andrea Martens Non-Executive Director
Abigail Foote Non-Executive Director
Zion Armstrong Non-Executive Director

EXECUTIVES’ DETAILS
Brent Scrimshaw Managing Director and Group CEO

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

223 Tuam Street
Christchurch Central
PO Box 1234
Christchurch 8011

KMD BRANDS LIMITED - INTERIM REPORT 2026

17

SHARE REGISTRY

In New Zealand: MUFG Corporate Markets

Physical Address: Level 30, PWC Tower
15 Customs Street West
Auckland 1010
New Zealand

Postal Address: PO Box 91976
Auckland, 1142
New Zealand

Investor enquiries: +64 9 375 5998
Email address: enquiries.nz@cm.mpms.mufg.com
Internet address: www.mpms.mufg.com


In Australia: MUFG Corporate Markets

Physical Address: Level 10, Tower 4
727 Collins Street
Melbourne VIC 3008
Australia

Postal Address: Locked Bag A14
Sydney, South NSW 1235
Australia

Investor enquiries: +61 1300 554 474 (toll free within Australia)
Email address: support@cm.mpms.mufg.com
Internet address: www.mpms.mufg.com


STOCK EXCHANGES
The Company’s shares are listed on the New Zealand Exchange (NZX) and on the Australian Securities Exchange (ASX) as
foreign exempt listing.

INCORPORATION
The Company is incorporated in New Zealand.

© 2026 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Confidential

Independent Auditor’s Review
Report

To the shareholders of KMD Brands Limited (G roup)
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 3 to 15
do not:
‒ present fairly, in all material respects, the
Group’s financial position as at 31 January
2026 and its financial performance and cash
flows for the 6 month period then ended and
comply with New Zealand Equivalent to
International Accounting Standard 34
Interim Financial Reporting (NZ IAS 34)
issued by the New Zealand Accounting
Standards Board.

We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
‒ the interim consolidated balance sheet as at
31 January 2026;
‒ the interim consolidated statements of
comprehensive income, changes in equity
and cash flows for the 6 month period then
ended; and
‒ notes, including material accounting policy
information.

Basis for conclusion
We conducted our review of the interim consolidated financial statements in accordance with NZ SRE 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410
(Revised). Our responsibilities are further described in the Auditor's responsibilities for the review of the interim
consolidated financial statements section of our report.
We are independent of KMD Brands Limited in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Our firm has provided other services to the Group in relation to reasonable assurance and agreed upon
procedures in respect of bank covenant compliance and store revenue certificates. Subject to certain restrictions,
partners and employees of our firm may also deal with the Group on normal terms within the ordinary course of
trading activities of the business of the Group. These matters have not impaired our independence as auditor of
the Group. The firm has no other relationship with, or interest in, the Group.