KMD BRANDS LIMITED — Capital/Financing Update 2018

Dec 21, 2018

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21 December 2018 Market Information Services Section New Zealand Exchange Limited Wellington

NOTIFICATION OF PERFORMANCE RIGHTS

For the purposes of Listing Rule 7.12.1 of the NZSX Listing Rules, Kathmandu Holdings Limited advises the following performance rights have been issued:

21 Dec
	ember 201	8
Market	Informatio	n Services Sect
			io
New Ze	aland Exch	ange Limited
Welling	ton
NOTIFI
	ATION OF	PERFORMANC	R	IGHTS
For theth fll	purposes oi f	f Listing Rule 7iht	.12h	.1 of the NZSX Listing Rules,b id		Kathm	an	du Holdings L	imited advis	es
e o	owng per	rmance rgs	a	ve een ssue:
a)	Class of s	curities:
					Pf iht	t	di	h	t t	n
					erormance rgKathmandu Holdin	o os Li	nite	ry sares pLon Term	rsuan oncentive Pla
						g		g
	ISIN:				ISIN NZKMDE0001SE
b)	Number o	f securities issue	d:		Performance rights i	n resp	ect o	f 261,388 ord	inary shares
c)	Nominal v	alue:			Not applicable
	Issue pric	e:			Nil, pursuant to Kat	mand	u Ho	ldings Limited	Long Term
					Incentive Plan
d)	Payment i	n cash?			No. The performanc	e right	to b	e allocated or	dinary shares i	n
					Kathmandu Holdings	Limit	ed is	subject to sat	isfaction of
					i f	di	i	ih d	Tl
					certan perormance	con	ton	wt regars	to ota
					Shareholder Returns	.
e)	Amount p	aid up:			Nil
f)	Principal t	erm of securitie	s:		• Each Performanc	e Righ	t gra	nted under th	e Plan entitles
					the holder to acq	uire o	ne f	ully paid ordin	ary share in
					Kathmandu Hold	ings Li	mite	d.
					• 50% of vesting is	subje	ct to	the company	achieving Tota	l
					Shareholder Ret	rn pe	rfor	ance relative	to a defined
					comparable grou	p of c	omp	anies and vest	on a sliding sc	ale
					proportionate to	the T	otal	hareholder R	eturn
					performance
										th
					• 50% of vesting is	subje	ct to	an Earnings P	er Share grow
					hurdle and vestEarnings Per Sha	on a slidingre growth		scale proport	ionate to the t	otal
					 Performance righ	ts will laps		e where the p	erformance
					conditions are no	t met.
					• Performance rig	hts wil	l lap	se where the h	older ceases t	o
					be employed by	the Ka	thm	andu Group b	efore the end	of a
					performance per	iod.

Kathmandu Holdings Ltd

249 Park Street, South Melbourne, Victoria 3205 PO Box 984, South Melbourne, Victoria 3205, Australia Phone: +61 3 9267 9999 Fax: +61 3 9267 9933 kathmandu.com.au

11 Mary Muller Drive, Heathcote 8022 PO Box 1234, Christchurch 8140, New Zealand Phone: +64 3 373 6110 Fax: +64 3 373 6116 kathmandu.co.nz

	• There is no amount payable by holders either on grant orexercise of the Performance Rights.
g) Percentage of total class issued:	0.12%
h) Reason for issue:	Issue of performance rights to selected Senior Managementemployees to be allocated ordinary shares in the companyupon the satisfaction of certain conditions.
i)Specific authority for the issue:	Resolution at Annual General Meeting of shareholders dated23 November 2018 and resolution of Directors dated 14December 2018.
j)Terms or details of the issue:	i. The holder has the right to be issued Ordinary Sharesvesting on 1 December 2021 provided the employeeremains in employment with the company to that date.ii. 50% of the number of performance rights that vest willdepend on Kathmandu Holdings Limited’s TotalShareholder Return performance relative to a definedcomparable group of companies over the 36 monthsending 1 December 2021iii. 50% of the number of performance rights that vest willdepend on Kathmandu Holdings Limited’s Earnings PerShare compound average annual growth rate between 1August 2018 and 31 July 2021.iv. Performance rights will lapse where the performanceconditions are not met.
k) Total number of securities of theclass after issue:	261,388 - Performance Rights – Kathmandu Holdings LimitedLong Term Incentive Plan
l)Treasury Stock:	Not applicable
m) Date of issue:	20 December 2018

Reuben Casey Company Secretary

Kathmandu Holdings Ltd 11 Mary Muller Drive, Heathcote 8022 PO Box 1234, Christchurch 8140, New Zealand Phone: +64 3 373 6110 Fax: +64 3 373 6116 kathmandu.co.nz

249 Park Street, South Melbourne, Victoria 3205 PO Box 984, South Melbourne, Victoria 3205, Australia Phone: +61 3 9267 9999 Fax: +61 3 9267 9933 kathmandu.com.au