KMD BRANDS LIMITED — Interim / Quarterly Report 2022

Mar 22, 2022

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(Formerly Kathmandu Holdings Limited)

1H FY22 RESULTS PRESENTATION

23 MARCH 2022

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CONTENTS

1. INTRODUCING KMD BRANDS 3 2. FIRST HALF HIGHLIGHTS 7 3. GROUP FINANCIALS 11 4. RIP CURL 17 5. KATHMANDU 20 6. OBOZ 23 7. SECOND HALF FOCUS 25 8. APPENDICES 29

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2

1H FY22 RESULTS PRESENTATION

SECTION 1

INTRODUCING KMD BRANDS

1H FY22 RESULTS PRESENTATION

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3

OUR PURPOSE

Inspiring people to explore and love the outdoors.

4 1H FY22 RESULTS PRESENTATION

OUR VISION

• To be the leading family of global outdoor brands - designed for purpose, driven by innovation, best for people and planet.

5 1H FY22 RESULTS PRESENTATION

OWNER OF LEADING GLOBAL OUTDOOR ACTIVE BRANDS

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As a portfolio, our brands provide all the fundamentals for strong long-term growth. Technical and innovative products and practices; brands with global reach and diversification; capabilities across multiple geographies and channels and a strong base of loyal, active customers.

As the parent company, KMD Brands brings vision and strategic guidance to enable group synergies and to create more than the sum of the parts. Like sharing expertise in technology, product research and development, or leveraging operational excellence in sourcing, supply chain and systems to enable the best delivery of customer experience across our brands.

1H FY22 RESULTS PRESENTATION

6

SECTION 2

FIRST HALF HIGHLIGHTS

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7

OUR STRATEGY

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BUILD GLOBAL BRANDS

Expand global footprint and invest in world class brand and customer experiences.

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ELEVATE DIGITAL

Invest in Group digital platforms to deliver a truly world-class, unified commerce experience.

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LEVERAGE OPERATIONAL EXCELLENCE

Deliver operational excellence to all brands across shared group support functions.

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LEAD IN ESG

Demonstrate leadership across environmental, social and governance by transforming business culture and mindset.

Maintain balance sheet flexibility to support organic growth and M&A opportunities.

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1H FY22 RESULTS PRESENTATION

DELIVERING ON OUR STRATEGY

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BUILD GLOBAL ELEVATE LEVERAGE OPERATIONAL LEAD IN
BRANDS DIGITAL EXCELLENCE ESG
New Loyalty Management System Group appointments made in HR and
President of KMD Brands Europe Group ESG focus areas determined
software in place across Rip Curl Commercial (Supply Chain, Property
appointed. (refer to Appendix 1).
and Kathmandu in ANZ. and Procurement).
Sponsored the first ever WSL finals,
Expanded wetsuit take-back
held in the USA, with the men's
+14.5% online sales growth, with Rip Curl and Kathmandu now
program to all Rip Curl stores in
event won by a Rip Curl surfer.
penetration increasing to 13.8% of operating the same Point of Sale
Australia.
Opened 10 new owned / licensed DTC sales. system across Australasia.
Rip Curl ESG strategy finalised.
retail stores globally.
General Manager of International
appointed. +46.4% online sales growth, with Utilising Rip Curl infrastructure to Kathmandu won the Deloitte New
Kathmandu Europe Fall / Winter 22 penetration increasing to 21.2% of drive international expansion to Zealand Top 200 Sustainable
sales. Europe and Canada. Business Leadership award.
sell-in complete. Forward orders in
line with expectations.
Demand for Oboz brand and
products has never been stronger. Following successful online launch, Implementation of group business Employee volunteer program
Forward orders into FY23 support sales starting to build. intelligence tool into Oboz. established.
the medium-term growth targets.
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9 1H FY22 RESULTS PRESENTATION

Q2 REBOUND AS STORES REOPEN

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Kathmandu COVID store closures
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Same store sales

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(incl. online)
Open Closed 20.0%
15.0%
97% 99% 99% 15.4%
10.0%
66%
47% 46% 5.0% 3.0%
0.0%
-5.0%
-10.0%
-18.0%
-15.0%
-20.0%
Aug Sep Oct Nov Dec Jan Q1 Q2 1H
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Rip Curl COVID store closures Same store sales
(incl. online)
Open Closed
20.0%
98% 100% 98% 15.0%
80% 10.0%
64% 67%
5.0% 3.0%
0.0%
-5.0% -1.5%
-9.4%
-10.0%
-15.0%
-20.0%
Aug Sep Oct Nov Dec Jan Q1 Q2 1H
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Kathmandu heavily impacted by Q1 lockdowns, with higher store concentration in Australasian locked down regions.

Rip Curl store network more diversified globally, with lower store concentration in Australasian locked down regions.

Q1 included 6,891 lost trading days due to COVID lockdowns compared to 2,432 in Q1 last year. For a 3 week period in Aug / Sep over 70% of the store network was closed.

Q1 included 4,249 lost trading days due to COVID lockdowns compared to 3,700 in Q1 last year.

Q2 same store sales growth +3.0% following COVID lockdowns in Q1.

Upon reopening, Q2 same store sales growth rebounded to +15.4%, demonstrating the lost sales opportunity in Q1.

1. Same store sales are for the 26 full weeks ended 30 January 2022, and are measured at constant currency.

1H FY22 RESULTS PRESENTATION

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SECTION 3

GROUP FINANCIALS

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11 1H FY22 RESULTS PRESENTATION

PROFIT & LOSS

P&L reflects the short-term impact of COVID.

KATHMANDU GROUP	Statutory	Underlying	Underlying
NZD $m *2	1H FY22	1H FY22	1H FY21	Var %
SALES	407.3	407.3	410.7	(0.8%)
GROSS PROFIT	234.9	234.9	242.5	(3.1%)
Gross margin	57.7%	57.7%	59.0%
OPERATING EXPENSES	(178.8)	(224.7)	(194.3)	15.7%
% of Sales	43.9%	55.2%	47.3%
EBITDA	56.1	10.2	48.2	(78.8%)
EBITDA margin %	13.8%	2.5%	11.7%
EBIT	0.9	(5.5)	33.4
EBIT margin %	0.2%	-1.3%	8.1%
NPAT	(5.5)	(6.8)	23.1

SALES: Positive Q2 rebound as Kathmandu and Rip Curl stores in Australasia reopened.

Oboz heavily impacted by temporary closure of Vietnam factories (supply now recommenced).

GROSS MARGIN: 130 bps (1.3% of sales) below last year due to elevated international freight costs, and increased clearance mix for the Kathmandu brand.

OPERATING EXPENSES: Carefully controlled during store closures.

1. Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results. Refer to Appendix 3 for a reconciliation of Statutory to Underlying results.

2. 1H FY22 NZD/AUD conversion rate 0.953 (1H FY21: 0.931), 1H FY22 NZD/USD conversion rate 0.694 (1H FY21 0.684).

1H FY22 RESULTS PRESENTATION

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SALES

Total Group Reported Sales ($m)

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410.7 407.3
363.7
Q2
Q2
rebound
229.0 rebound
202.9
Q1
Q1
COVID
COVID
impacted
impacted
1H FY18 1H FY19 1H FY20 1H FY21 1H FY22
incl. 6 months incl. 3 months
of Oboz of Rip Curl
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Sales Mix 1H FY22

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Other Rest of World
Oboz
1% 7%
5%
Europe
Wholesale
9%
31%
BY BY BY
BRAND CHANNEL North REGION
America
18%
DTC DTC
Kathmandu Online Retail AU & NZ
Rip Curl
32% 12% Stores 66%
63%
56%
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Online Sales ($m)

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Online sales % of DTC sales
17.4%
12.8%
48.1
8.8%
7.1%
6.1% 36.5
30.3
24.8
21.6
1H FY18 1H FY19 1H FY20 1H FY21 1H FY22
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1. Direct to consumer (“DTC”) sales include all sales from retail stores, online sites and marketplaces. 2. All years include a full six months of both Kathmandu and Rip Curl online and total DTC sales for comparability over time, including pre-acquisition.

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Sales YOY % of DTC
Online (NZD $m) Var % 1H FY22
Rip Curl 20.5 14.5% 13.8%
Kathmandu 27.2 46.4% 21.2%
Oboz 0.4
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1H FY22 RESULTS PRESENTATION

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EBITDA

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Lockdowns in Australasia were
more severe than last year, and
less government support and rent
assistance was received, impacting
.
YOY EBITDA by c. $35m.
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Q2 EBITDA above last
year reflecting
rebound in sales.
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1H FY22 RESULTS PRESENTATION

STRONG BALANCE SHEET

Key Balance Sheet items and ratios*1
NZD $m	Jan 22	Jul 21	Jan 21
Net cash / (Net interest bearing liabilities)	(48.6)	37.0	(10.1)
Leverage Ratio *2	0.6x	-0.3x	0.1x
Net Debt to Equity *3	5.6%	n.m.	1.3%
Fixed Charge Cover *4	1.65x	1.98x	1.68x
Net working capital	187.7	136.2	164.2
Inventories	249.6	216.5	229.6
Curent trade and other receivables	68.2	68.9	57.8
Current trade and other payables	(130.1)	(149.2)	(123.2)
Net working capital % of sales	20.4%	14.8%	19.3%
Stock Turns *5	1.61x	1.71x	1.49x
Equity	813.7	818.9	781.0

The strong balance sheet position allows the Group to support organic growth and M&A opportunities.

DEBT: Significant funding headroom of c. $250m. Long-term leverage ratio target c. 0.5x Net Debt / EBITDA. All debt facility covenants comfortably complied with.

INVENTORY: $20m above Jan 21, being managed to mitigate increased production lead times and international shipping delays.

January inventory balances traditionally include stock build for key Rip Curl Northern Hemisphere summer and Kathmandu winter seasons.

1. Key ratios calculated using 12 month underlying P&L measures.

2. Net Debt / EBITDA.

3. Net Debt / (Net Debt + Equity). At July 21, the net cash position means this measure is not meaningful (“n.m.”).

4. (EBITDA + Rent)/(Rent + Net Finance Costs excl. FX).

5. COGS / Average Inventories YOY.

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1H FY22 RESULTS PRESENTATION

INTERIM DIVIDEND UP 50%

Cash Flow (NZD $m)	1H FY22	1H FY21
NPAT	(5.5)	22.3
Change in working capital	(64.9)	(17.6)
Non-cash items	20.3	6.0
Adjusted operating cash flow*1	(50.1)	10.7
Key Line Items:	1H FY22	1H FY21
Net interest paid (including facility fees)	(1.8)	(2.7)
Net income taxes paid	(14.0)	(13.9)
Capital expenditure	(13.2)	(12.2)
Dividends paid	(21.7)	-

Dividends declared (NZD $m)

	8.1 9.0 ~~0.0~~ 14.2 21.3 24.8 27.2 ~~-~~ 21.3 32.9 36.2 35.5 FY18 FY19 FY20 FY21 FY22	8.1 9.0 ~~0.0~~ 14.2 21.3 24.8 27.2 ~~-~~ 21.3 32.9 36.2 35.5 FY18 FY19 FY20 FY21 FY22	8.1 9.0 ~~0.0~~ 14.2 21.3 24.8 27.2 ~~-~~ 21.3 32.9 36.2 35.5 FY18 FY19 FY20 FY21 FY22	8.1 9.0 ~~0.0~~ 14.2 21.3 24.8 27.2 ~~-~~ 21.3 32.9 36.2 35.5 FY18 FY19 FY20 FY21 FY22	8.1 9.0 ~~0.0~~ 14.2 21.3 24.8 27.2 ~~-~~ 21.3 32.9 36.2 35.5 FY18 FY19 FY20 FY21 FY22
Interim	4.0	4.0	-	2.0	3.0
Final	11.0	12.0	-	3.0
Total	15.0	16.0	-	5.0

Operating cash outflow a result of COVID lockdowns in Q1, and inventory build to mitigate international supply challenges.

NZ 3.0 cents per share interim dividend, increased from NZ 2.0 cents last year.

Dividend will be fully franked for Australian shareholders.

Q2 operating cash flow strongly positive.

Dividend will not be imputed for New Zealand shareholders.

Non-cash items include depreciation and amortisation of $15.7m.

Record date 15 June 2022, payment date 30 June 2022.

1. Adjusted for impacts of adopting IFRS 16.

1H FY22 RESULTS PRESENTATION

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SECTION 4

RIP CURL

1H FY22 RESULTS PRESENTATION

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RIP CURL PROFIT & LOSS

RIP CURL	Pre IFRS 16	Pre IFRS 16
NZD $m	1H FY22	1H FY21	Var %
SALES	257.8	251.1	2.7%
GROSS PROFIT	152.7	150.3	1.5%
Gross margin	59.2%	59.9%
OPERATING EXPENSES	(118.9)	(101.7)	17.0%
% of Sales	46.1%	40.5%
EBITDA (underlying)	33.7	48.7	(30.7%)
EBITDA margin %	13.1%	19.4%
EBIT (underlying)	26.4	41.4	(36.4%)
EBIT margin %	10.2%	16.5%

Total sales: +2.7% growth, with strong sales growth in online and wholesale channels.

Europe and Hawaii in particular achieved strong sales growth.

North America was impacted by wetsuit shortages and port congestion. Australia was impacted by store closures in Q1, rebounded in Q2.

: Direct to consumer same store sales results (incl. online)[1]

+2.1% adjusted for lockdowns[2] ;

-1.5% overall.

Q2 same store sales growth +3.0%, with +20.1% same store sales growth compared to Q2 FY20 (pre-COVID).

Online sales: +14.5% growth, with penetration increasing from 11.5% of DTC

sales in 1H FY21 to 13.8% of DTC sales in 1H FY22.

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Other Rest of World
2% 11%
Wholesale
40% Europe
14%
BY BY
CHANNEL REGION
North
DTC
America
Retail AU & NZ
DTC Stores 21% 54%
Online 50%
8%
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1. Same store sales are for the 26 full weeks ended 30 January 2022, and are measured at constant currency.

2. Adjusted same store sales removes stores that were not able to open for a comparable period in either year because of COVID closures.

Wholesale sales: +16.1% growth, with less COVID interruption to the 1H FY22 sell-in period than last year.

Gross margin impacted by higher wholesale mix and elevated international freight costs.

Continued investment in the long-term value of the brand, including sponsorship of the first ever World Surf League (“WSL”) finals.

Depreciation includes notional amortisation of Rip Curl customer relationships ($2.5m in both 1H FY21 and 1H FY22).

1H FY22 RESULTS PRESENTATION

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• INVESTING IN BRAND, CUSTOMER CONNECTION AND SUSTAINABLE SOLUTIONS

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RIP CURL WSL FINALS

INTERACTIVE BIKINI FIT GUIDE

SALTWATER CULTURE

The most watched day in the history of professional surfing.

The Rip Curl WSL finals in the USA drew a record 6.8 million live video views as surfing fans globally witnessed the crowning of the 2021 male and female world surfing champions. Rip Curl team rider Gabriel Medina won his third world title, driving both viewership and Rip Curl’s claim on professional surfing in the USA.

Shot on the women behind the brand.

The Interactive Fit Guide featured real women and real shapes, promoting size inclusivity and offering a whole new shopping experience for bikinis both instore and online.

Made with Sustainability in mind.

A preferred fibre list driving sustainable solutions and collections featuring cotton through the Better Cotton Initiative, recycled synthetics, Forest Stewardship Council (FSC)-accredited viscose and Bloom biobased EVA foam created from cleaning up algae-polluted waterways.

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1H FY22 RESULTS PRESENTATION

SECTION 5 KATHMANDU

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1H FY22 RESULTS PRESENTATION

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KATHMANDU PROFIT & LOSS

KATHMANDU	Pre IFRS 16	Pre IFRS 16
NZD $m	1H FY22	1H FY21	Var %
SALES	128.3	129.3	(0.8%)
GROSS PROFIT	74.3	82.0	(9.4%)
Gross margin	57.9%	63.4%
OPERATING EXPENSES	(92.6)	(81.4)	13.7%
% of Sales	72.2%	63.0%
EBITDA (underlying)	(18.3)	0.5
EBITDA margin %	-14.3%	0.4%
EBIT (underlying)	(26.3)	(6.8)
EBIT margin %	-20.5%	-5.3%

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DTC
Online
21%
BY
CHANNEL
DTC
Retail
Stores
79%
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1. Same store sales are for the 26 full weeks ended 30 January 2022, and are measured at constant currency.

2. Adjusted same store sales removes stores that were not able to open for a comparable period in either year because of COVID closures.

Total sales by market (at constant exchange rates):

Australia +4.3%, with 5,220 lost trading days in 1H FY22 vs 2,306 in 1H FY21.

New Zealand -4.0%, with 1,961 lost trading days in 1H FY22 vs 266 in 1H FY21.

: Same store sales results (incl. online)[1] +15.9% adjusted for COVID lockdowns[2] ; +3.0% overall.

Strong Q2 rebound, with same store sales growth of +15.4% following Q1 lockdowns.

Kathmandu same store sales remained -21.1% below Q2 FY20 (pre-COVID) due to continued restrictions on international travel and tourism.

Online sales: +46.4% growth, with penetration increasing from 14.4% of sales in 1H FY21 to 21.2% of sales in 1H FY22.

Gross margin impacted by elevated clearance mix and elevated international freight costs.

Second half gross margins are currently expected to be above last year based on promotional plans, and expectations of international freight costs and currency impacts.

Operating expenses carefully controlled through lockdowns, while continuing to invest for long-term brand growth. Brand momentum is building as a result of a renewed focus on marketing and product.

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1H FY22 RESULTS PRESENTATION

KATHMANDU

STRONG BRAND & CUSTOMER FUNDAMENTALS:

• Kathmandu dominates the category in AU and NZ; leading the market for top-of-mind awareness, consideration, brand desire and digital visitation.[1]

• NPS across ANZ of 76 across all customer groups, 2 million active Summit Club members.

INVESTING IN LONG TERM BRAND EQUITY:

• Summer campaign has built ‘all season’ perceptions with increased consideration for summer contributing to building brand desire. Driving key brand differentiators, especially amongst millennial consumer.[1]

• Delivered over 72 million paid and owned digital impressions across ANZ, total editorial reach of 31 million with 91% overall positive social sentiment across paid and organic channels.

PRODUCT DRIVING YEAR-ROUND RELEVANCE:

• Successful new summer specific product franchises launched in graphic T’s, SUN-stopper, EVRY-day shorts building on continued momentum in Camp.

• Autumn / Winter sees new franchise launches of ANY-time sweats and franchise extensions with Heli-anoraks, and COZY fleece.

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LEADING THE INDUSTRY IN GROUND-BREAKING SUSTAINABILITY INNOVATIONS

• Bio-down launches Winter 2022: breakthrough sustainability innovation, and winner of the Outdoor Retailer Innovation Awards in January 2022.

1. Kantar Brand Health Report Aug 2021 to Jan 2022.

1H FY22 RESULTS PRESENTATION

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SECTION 6 OBOZ

1H FY22 RESULTS PRESENTATION

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OBOZ PROFIT & LOSS

OBOZ	Pre IFRS 16	Pre IFRS 16
NZD $m	1H FY22	1H FY21	Var %
SALES	21.2	30.4	(30.2%)
GROSS PROFIT	7.7	10.5	(27.0%)
Gross margin	36.1%	34.5%
OPERATING EXPENSES	(8.0)	(6.7)	20.3%
% of Sales	37.9%	22.0%
EBITDA (underlying)	(0.4)	3.8
EBITDA margin %	-1.8%	12.5%
EBIT (underlying)	(0.8)	3.6
EBIT margin %	-3.7%	11.8%

1H FY22 supply challenges were unprecedented and transitory:

Wholesale and online sales heavily impacted by three-month COVID closure of Vietnam factories and compounded by international freight delays.

Approximately 50% of 1H FY22 orders unable to be fulfilled.

Gross margin erosion due to international freight costs averaging more than 300% over historical average.

Operating expenses have been carefully managed, while continuing investments to support brand momentum.

Depreciation includes notional amortisation of Oboz customer relationships ($0.1m in both 1H FY21 and 1H FY22).

Brand momentum remains strong:

Demand outstrips supply due to increased consumer focus on outdoor experiences.

Forward orders into FY23 support the medium-term revenue growth targets.

Online performance indicates a significant growth opportunity.

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1H FY22 RESULTS PRESENTATION

SECTION 7 SECOND HALF FOCUS

1H FY22 RESULTS PRESENTATION

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KEY 2H FY22 STRATEGIC PRIORITIES

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BUILD GLOBAL ELEVATE LEVERAGE OPERATIONAL LEAD IN
BRANDS DIGITAL EXCELLENCE ESG
Continue the global rollout of new
Group ESG strategy finalised for Oct
Group-wide loyalty management, Merging of Canada and UK
22 communication.
customer data, and online trading fulfillment centres for all brands.
Science-based targets set.
platforms.
Club Rip Curl loyalty scheme launch
Continued rollout of Group POS and
Opening new stores in the key in Australia in 2H FY22, with pre-
ERP systems, enabling Rip Curl to Progressing towards B-Corp
growth markets of North America registrations underway.
leverage unified commerce accreditation.
and Europe.
Launch additional marketplace
opportunities.
channels in key markets.
New global Autumn / Winter range Launch of Kathmandu online sites in New Kathmandu Bio Down product,
Leverage enhanced functionality of
launches into market. Europe and Canada. winner of the Outdoor Retailer
new merchandising, allocations and
Planning for Kathmandu USA launch Kathmandu Summit Club relaunch, Innovation Awards, will launch in 2H
replenishment software.
FY22.
underway. with exciting new value proposition.
Oboz Vietnam based factories are
ramping up production. Supply to
Building on positive launch of the
Progressing towards B-Corp
gradually recover in 2H FY22. online platform, online sales
accreditation.
Sawtooth X key product launch, in opportunity.
market from April.
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1H FY22 RESULTS PRESENTATION

OUTLOOK

BRANDS UPDATE

Rip Curl wholesale order books remain strongly above pre-COVID levels.

Kathmandu enters the traditionally strong winter season well prepared.

Oboz Vietnam based factories have reopened following COVID shutdowns and are ramping up production.

2H OUTLOOK

Second half gross margins are currently expected to be in line with last year based on promotional plans, and expectations of international freight costs and currency impacts.

COVID continues to cause ongoing disruption to our consumers and employees, particularly in the current New Zealand Omicron outbreak. Some supply challenges are beginning to ease, while forward demand for our products remains at record levels.

The second half is traditionally the strongest cash generating period.

The Group is well capitalised, investing in the long-term international expansion of our global house of brands.

1. Adjusted same store sales removes stores that were not able to open for a comparable period in either year because of COVID closures.

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1H FY22 RESULTS PRESENTATION

QUESTIONS

1H FY22 RESULTS PRESENTATION

28

SECTION 8

APPENDICES

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1H FY22 RESULTS PRESENTATION

APPENDIX 1: LEAD IN ESG

OUR ESG COMMITMENT:

To transform business culture through purpose-driven innovation and collaboration. We adopt a mindset which acknowledges the interdependence of our business with the wider communities we operate within and impact.

THREE KEY PILLARS OF THE GROUP ESG STRATEGY:

• Our people, our communities – positively impact the wellbeing of people and places touched by our brands.

• Science based climate action – transition to a low carbon future with a clearly defined methodology to reduce emissions in line with the Paris Climate goals.

• Circular business models – foster and invest in innovation for circular business systems throughout the value chain. Eliminate the linear takemake-waste approach to business and protect biodiversity and natural systems.

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1H FY22 RESULTS PRESENTATION

APPENDIX 2: BRANDS WITH GLOBAL REACH

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|North America|RC|KMD|Oboz|Total|Europe|RC|KMD|Oboz|Total|
|-|-|-|-|
|Owned stores|31|31|Owned stores|20|20|
|-|-|-|-|
|Licensed stores|15|15|Licensed stores|18|18|
|-|
|Online sites|1|1|1|3|Online sites|1|1|2|
|-|
|Wholesale doors|1,927|1,915|3,842|Wholesale doors|2,046|26|188|2,260|

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||||||
|---|---|---|---|---|
|Total Group|RC|KMD|Oboz|Total|
|-|
|Owned stores|162|159|321|
|-|-|
|Licensed stores|223|223|
|-|-|
|JV stores|23|23|
|Online sites|6|4|1|11|
|Wholesale doors|6,655|26|2,103|8,784|

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|South America|RC|
|Owned stores|4|
|Licensed stores|97|
|Online sites|1|
|Wholesale doors|916|
|KEY|Africa / Middle East|RC|
|RC|Rip Curl|||KMD|Kathmandu|||Oboz|Oboz|Licensed stores|25|

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|||||
|---|---|---|---|
|Asia|RC|
|Licensed stores|50|
|JV stores|23|
|Online sites|1|
|Wholesale doors|684|
|AU & NZ|RC|KMD|Total|
|Owned stores|107|159|266|
|-|
|Licensed stores|18|18|
|Online sites|2|2|4|
|-|
|Wholesale doors|1,082|1,082|

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1H FY22 RESULTS PRESENTATION

APPENDIX 3: STATUTORY TO UNDERLYING PROFIT & LOSS

GROUP			1H FY22						1H FY21
		IFRS 16	Transaction		Other			IFRS 16	Transaction	Other
NZD $m	Statutory	Leases*1	Costs		Abnormals	Underlying	Statutory	Leases*1	Costs*2	Abnormals	Underlying
SALES	407.3	-		-	-	407.3	410.7	-	-	-	410.7
GROSS PROFIT	234.9	-		-	-	234.9	242.5	-	-	-	242.5
Gross margin	57.7%					57.7%	59.0%				59.0%
OPERATING EXPENSES	(178.8)	(45.9)		-	-	(224.7)	(147.2)	(47.1)	-	-	(194.3)
% of Sales	43.9%					55.2%	35.8%				47.3%
EBITDA (underlying)	56.1	(45.9)		-	-	10.2	95.4	(47.1)	-	-	48.2
EBITDA margin %	13.8%					2.5%	23.2%				11.7%
EBIT	0.9	(6.4)		-	-	(5.5)	39.2	(5.8)	-	-	33.4
EBIT margin %	0.2%					-1.3%	9.5%				8.1%
NPAT	(5.5)	(1.3)				(6.8)	22.3	(0.7)	1.5	-	23.1

1. Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results. 2. 1H FY21 interest costs include $2.1m one-off bank facility underwriting costs ($1.5m net of tax).

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1H FY22 RESULTS PRESENTATION

APPENDIX 4: SEGMENT NOTE

SALES(NZD $'000) SALES per segment note SALES (Underlying) EBITDA(NZD $'000) EBITDA per segment note IFRS 16 Leases1 Abnormals EBITDA (Underlying) EBIT(NZD $'000) EBIT per segment note IFRS 16 Leases1 Abnormals EBIT (Underlying)	1H FY22 RipCurl Kathmandu Oboz Corporate Total 257,834 128,277 21,193 - 407,304 257,834 128,277 21,193 - 407,304 RipCurl Kathmandu Oboz Corporate Total 52,657 8,503 (230) (4,808) 56,122 (18,925) (26,829) (149) - (45,904) - - - - - 33,732 (18,326) (379) (4,808) 10,218 RipCurl Kathmandu Oboz Corporate Total 28,649 (22,121) (834) (4,813) 881 (2,291) (4,135) 45 - (6,381) - - - - - 26,358 (26,256) (789) (4,813) (5,500)	1H FY21
		RipCurl Kathmandu Oboz Corporate Total
		251,080 129,265 30,368 - 410,713
		251,080 129,265 30,368 - 410,713
		RipCurl Kathmandu Oboz Corporate Total
		67,775 28,563 3,804 (4,787) 95,355 (19,105) (28,014) - - (47,119) - - - - -
		48,670 549 3,804 (4,787) 48,236
		RipCurl Kathmandu Oboz Corporate Total
		42,589 (2,185) 3,572 (4,789) 39,187 (1,140) (4,627) - - (5,767) - - - - -
		41,449 (6,812) 3,572 (4,789) 33,420

1. Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results.

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1H FY22 RESULTS PRESENTATION

APPENDIX 5: BALANCE SHEET

Balance Sheet (NZD $m)	Jan 22	Jul 21	Jan 21
Inventories	249.6	216.5	229.6
Property, plant and equipment	79.3	79.3	82.6
Right of Use Asset (IFRS 16)	252.3	242.7	238.2
Intangible assets	699.2	688.6	681.2
Other assets	106.5	95.5	71.2
Total assets (excl. cash)	1,386.9	1,322.6	1,302.8
Net interest bearing liabilities and cash	(48.6)	37.0	(10.1)
Lease Liability (IFRS 16)	(286.8)	(279.3)	(276.1)
Other non-current liabilities	(105.4)	(101.0)	(96.3)
Current liabilities	(132.4)	(160.4)	(139.3)
Total liabilities (net of cash)	(573.2)	(503.7)	(521.8)
Net assets	813.7	818.9	781.0

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1H FY22 RESULTS PRESENTATION

IMPORTANT NOTICE AND DISCLOSURE

This presentation prepared by KMD Brands Limited (the “Company” or the “Group”) (ASX/NZX:KMD) provides additional comment on the financial statements of the Company, and accompanying information released to the market. As such, it should be read in conjunction with the explanations and views in those documents.

This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction. Past performance is not indicative of future performance and no guarantee of future returns is implied or given.

The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or specific needs of any particular person. Potential investors must make their own independent assessment and investigation of the information contained in this presentation and should not rely on any statement or the adequacy or accuracy of the information provided.

This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates. Forward-looking information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of the Company’s control, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements. The forward-looking statements are based on information available to the Company as at the date of this presentation.

To the maximum extent permitted by law, none of the Company, its subsidiaries, directors, employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects, statement or returns contained in this presentation. Such forecasts, prospects, statement or returns are by their nature subject to significant uncertainties and contingencies. Actual future events may vary from those included in this presentation.

The statements and information in this presentation are made only as at the date of this presentation unless otherwise stated and remain subject to change without notice. Some of the information in this presentation is based on unaudited financial data which may be subject to change. Information in this presentation is rounded to the nearest hundred thousand dollars, whereas the financial statements of the Company are rounded to the nearest thousand dollars. Rounding differences may arise in totals, both dollars and percentages. All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company.

All currency amounts in this presentation are in NZD unless stated otherwise.

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1H FY22 RESULTS PRESENTATION