KMD BRANDS LIMITED — Investor Presentation 2021

Sep 20, 2021

Kathmandu Holdings FY21 Results Presentation

21 September 2021

Owner of leading global outdoor active brands

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Iconic brands

• Rip Curl: top 3 global surf brand

• Kathmandu: leading outdoor brand in Australasia[1]

Loyal, active consumers

• NPS[2] above 70

• 2.1m active Summit Club members

• 44k Rip Curl Search GPS watch users

Technical products

• R&D driving innovation

• Sustainable materials

• Designed for purpose

Leader in ESG

Diversified

  - •

  - Early B-Corp adopter Geography

  - Largest syndicated • Multi-channel Sustainability linked • Seasonality

  - loan in New Zealand

     - Products

• Oboz: fast growing North American hike footwear brand

1. Kantar Brand Health Report Mar-Apr 2021 2. Net Promoter Scores: Kathmandu 76, Rip Curl Australia 74

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2 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Brands with global reach

North America	RC	KMD	Oboz	Total
Owned stores	31	-	-	31
Licensed stores	13	-	-	13
Online sites	1	1	1	3
Wholesale doors	1,353	-	1,863	3,216

Europe	RC	KMD	Oboz	Total
Owned stores	19	-	-	19
Licensed stores	14	-	-	14
Online sites	1	1	-	2
Wholesale doors	2,037	28	114	2,179

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South America RC
Owned stores 4
Licensed stores 93
Online sites 1
Wholesale doors 913
Africa / Middle
RC
East
Licensed stores 23
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KEY RC Rip Curl | KMD Kathmandu | Oboz Oboz

Total Group	RC	KMD	Oboz	Total
Owned stores	160	160	-	320
Licensed stores	207	-	-	207
JV stores	20	-	-	20
Online sites	6	4	1	11
Wholesale doors	5,958	28	2,129	8,115

Asia	RC	Oboz	Total
Licensed stores	46	-	46
JV stores	20	-	20
Online sites	1	-	1
Wholesale doors	567	152	719

AU & NZ	RC	KMD	Total
Owned stores	106	160	266
Licensed stores	18	-	18
Online sites	2	2	4
Wholesale doors	1,088	-	1,088

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3 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Financial highlights

$922.8m Sales +15.1%

$66.3m Underlying NPAT[1] Statutory NPAT $63.4m

+40 bps $113.3m Gross margin Underlying EBITDA[1] improvement +35.9% $93.3m $37.0m

$37.0m Net cash balance Bank facility c.$300m

Underlying operating cash flow[1]

1. for a reconciliation of Statutory to Underlying results

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4 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION
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Operational highlights

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We’re Out There

19.2%

Direct to consumer Successful brand (DTC) same store relaunch May 21 sales growth

31.3%

76 NPS

Online sales growth up 4 points in FY21 12.5% of DTC sales 169,000 responses

Online Store

Successful launch Apr 21

Wholesale

Double digit growth in forward wholesale order book to record levels

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5 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION
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For more information, refer to the Kathmandu Holdings Limited Sustainability Report to be released in October 2021

1. Committed to largest syndicated sustainability linked loan at time of signing

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3
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2. Certified carbon zero under the Toitu CarbonZero programme for our operation footprint. Scope 1,2 and mandatory scope 3 emissions

3. Leather sourced from Leather Working Group tanneries; a not-for-profit organisation responsible for a leading environmental certification for the leather manufacturing industry

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7 | KATHMANDU HOLDINGS FY21 RESULTS 0 RESULTS PRESENTATIONPRESENTATION

Refreshed group strategy

Build Global Elevate Leverage Lead in Brands Digital Operational ESG Excellence Expand global footprint Invest in Group digital Deliver operational Demonstrate leadership and invest in world class platforms to deliver a excellence to all brands across environmental, brand and customer truly world-class, unified across shared group social and governance to experiences commerce experience support functions drive long-term value for our shareholders

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

Maintain balance sheet flexibility to manage through COVID uncertainties, allowing capital return options and capacity for future M&A

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8 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Build global brands

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ICONIC, INSPIRATIONAL, AND AUTHENTIC GLOBAL SURF BRAND

• Goal to be No.1 surf brand in Australasia, and top 3 in North America / Europe

• Grow North America, potential to double business across own store, online and wholesale channels

• Launch global loyalty programme

• Grow online and expand marketplaces

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LEADING OUTDOOR BRAND IN AUSTRALASIA[1]

• Leverage Summit Club, with 2.1m loyal and engaged members

• Launch in mainland Europe and Canada in FY22, significant market opportunity

• Grow product offering, with strong new product pipeline, and enhanced summer product range

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ESTABLISHED AND DISTINCTIVE AMERICAN FOOTWEAR BRAND

• Grow product range into adjacent categories

• Build on the successful launch of an online store

• Grow European market

• Grow to a USD$100m business in the medium term

1. Kantar Brand Health Report Mar-Apr 2021

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9 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Elevate digital

Significant investments being made to elevate our digital capabilities

Group target: increase online to 25% of DTC sales in the medium-term through:

Online platform enhancement

• New Group platform launched

• Platform being rolled out across brands

Omni-channel foundations

• POS upgrade to support unified commerce

• Click collect, endless aisle and fulfilment from store

Loyalty management

• Club Rip Curl launch

• Summit Club relaunch

Data insights and analysis

• Data algorithms for pricing and promotions – initial Kathmandu phase launched

• Customer data platform – single view of customer interaction across brands

Personalisation

• New personalisation engine for tailored customer content and offers

• • Integration with loyalty platform

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Online platform
enhancement
Omni-channel
Personalisation
foundations
Data insights Loyalty
and analysis management
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10 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Leverage operational excellence

Group target: improve underlying EBITDA margin to 15% of sales

Accelerate cross-brand revenue growth opportunities

The Group has invested over $20m to date on core platforms to support the growth of its brands, with over $10m to be invested in FY22

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Supply Chain
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Optimisation of supply chain logistics, alignment of factories, and consolidating freight vendors to deliver gross margin benefit

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Property
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Leverage scale across the Group to efficiently manage fixed cost base, including infrastructure for new markets

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Product
innovation
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Collaboration in technical development, fabrics, and seasonal expertise

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Core systems investment

Shared platforms to integrate ERP business processes, loyalty management, and unlock growth potential across loyalty and online

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11 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

We aspire to be a leader in ESG, to drive long-term value for our shareholders

We are striving to extend Kathmandu’s B-Corp accreditation across all our brands

Transparency and responsibility will continue to underpin everything we do by managing our environmental and social impact responsibly and ethically

Our people, our communities

• People-centred culture and workplaces

• Wellbeing of workers in our supply chain

• Engage, inspire and protect our wider community

Science based climate action

• Set group-level Science Based Targets aligned with the Paris Climate Agreement

Circular business models

• Design for circularity throughout our value chain

• Target a zero waste supply chain

• For more information, refer to the Kathmandu Holdings Limited Sustainability Report to be released in October 2021

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12 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Group Financials

13 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Group result underpinned by strong Rip Curl performance

GROUP Statutory Underlying	GROUP Statutory Underlying
_NZD$m 2_ FY21 FY21 FY20 Var %*
SALES	922.8 922.8 801.5 15.1%
GROSS PROFIT Gross margin	541.6 541.6 467.0 16.0% 58.7% 58.7% 58.3%
OPERATING EXPENSES % of Sales	(333.6) (428.3) (383.7) 11.6% 36.2% 46.4% 47.9%
EBITDA EBITDA margin %	208.0 113.3 83.4 35.9% 22.5% 12.3% 10.4%
EBIT	92.2 83.8 56.2 49.3%
EBIT margin %	10.0% 9.1% 7.0%
NPAT	63.4 66.3 31.5 110.2%

• FY21 result includes a full twelve months of Rip Curl, compared to FY20 which includes nine months of Rip Curl post-acquisition

• Exceptional sales performance from both Rip Curl and Oboz

• Focused management of operating expenses include the benefit of rent abatements agreed with landlords ($7.3m), as well as restructuring and synergy savings delivering c. $15m annualised cost reduction

• Lease renewals completed for 14% of the retail store portfolio in FY21, delivering $1.4m annualised savings

• COVID related write down of Indonesia receivables provision $2.7m

• Net wage subsidies across Australia and New Zealand $16.6m

• FY21 includes $4.0m subsidy from North American PPP loans granted in FY20

• Depreciation includes $5.0m notional amortisation of Rip Curl customer relationships (FY20 $3.7m)

• Interest costs include $2.1m one-off bank facility underwriting costs ($1.5m net of tax), excluded from underlying results

• Future tax benefit of $7.0m realised from recognition of historical US tax losses

1. Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results. In FY20, $16.2m was incurred in relation to the acquisition and integration of Rip Curl, and restructuring support office roles. These one-off costs have been excluded from Underlying results. Refer to Appendix 1 for a reconciliation of Statutory to Underlying results

2. FY21 NZD/AUD conversion rate 0.931 (FY20: 0.939), FY21 NZD/GBP conversion rate 0.515 (FY20: 0.504), FY21 NZD/USD conversion rate 0.699 (FY20 0.636)

3. The Group has now finalised the Rip Curl purchase price allocation. As a result, the income statement, balance sheet, and cash flow for prior periods have been restated

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14 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Group sales growth

Total Group Reported Sales ($m)

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922.8
801.5
538.9
492.9
440.0
FY17 FY18 FY19 FY20 FY21
incl. 4 months incl. 9 months incl. 12 months
of Oboz of Rip Curl of Rip Curl
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Online Sales ($m)

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+21.9% CAGR
Online sales
(FY17 - FY21)
% of DTC sales
106.4
90.5
65.1
56.7
41.0
5.8% 7.6% 8.8% 15.7% 14.4%
FY17 FY18 FY19 FY20 FY21
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1. DTC sales include all sales from Rip Curl and Kathmandu retail stores, online sites and marketplaces 2. All years include a full twelve months of both Kathmandu and Rip Curl online and total DTC sales for comparability over time

Group Sales Mix FY21

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Oboz Other Rest of World
9% 1% 4%
Europe
Wholesale 10%
Kathmandu
31%
38%
BY BY North BY
BRAND CHANNEL America REGION
21%
DTC AU &
DTC Retail NZ
Rip Curl Online stores 65%
53% 10% 58%
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Sales YOY % of DTC
Online (NZD $m) Var % FY21
33.5 31.3% 12.5%
56.8 -29.8% 15.8%
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15 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Strong balance sheet with $37m net cash

Key Balance Sheet items($m) and ratios*1	Jul 21	Jul 20
Net cash / (Net interest bearing liabilities)	37.0	(9.4)
Leverage Ratio *2	-0.3x	0.1x
Net Debt to Equity *3	n.m.	1.2%
Inventories	216.5	228.8
Trade and other receivables	68.9	73.7
Trade and other payables	(149.2)	(149.9)
Net working capital	136.2	152.6
Net working capital % of sales	14.8%	16.5%
Stock Turns *4	1.71x	1.68x
Equity	818.9	779.2
ROIC *5	10.7%	8.2%
Fixed Charge Cover *6	2.0x	1.7x

• Significant funding headroom, with total bank facility of c. $300m

• Long-term leverage ratio target c.0.5x Net Debt / EBITDA

• Inventory well managed in COVID demand environment

• The strong balance sheet position allows the Group to:

Net Cash / (Net Debt) NZD $m

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NZD $m 37.0
(9.4) (10.1)
(19.3)
(31.4)
(79.2)
(273.2)
Jul18 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21
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• ride through any short-term challenges

• support growth investment

• pursue future M&A

• consider capital management options

1. Key ratios calculated using 12 month underlying P&L measures, including a full 12 months of Rip Curl P&L results last year

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. COGS / Average Inventories YOY

5. EBIT/(Net Debt + Equity)

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

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16 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Resilient cash flows and resumed dividends

Cash Flow(NZD$m)	FY21	FY20
NPAT	63.4	8.9
Change in working capital	18.1	57.8
Non-cash items	11.8	26.4
Adjusted operating cash flow*1	93.3	93.1

Key Line Items:

Net interest paid (including facility fees)*2	(5.7)	(12.7)
Net income taxes paid	(23.9)	(15.5)
Capital expenditure	(35.6)	(19.8)
Dividendspaid	(14.2)	(27.2)

Dividends declared (NZ $m)

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Interim Final
36.2 35.5
32.9
26.2
21.3
27.2
24.8
18.1
14.2
8.1 8.1 9.0
0.0
FY17 FY18 FY19 FY20 FY21
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• FY22 capex c. $35m

• NZ 3.0 cents per share final dividend

• Dividend will not be imputed for New Zealand shareholders

Dividends declared (NZ cents per share)

Interim	4.0	4.0	4.0	-	2.0
Final	9.0	11.0	12.0	-	3.0
Total	13.0	15.0	16.0	-	5.0

• Dividend will be fully franked for Australian shareholders

• Record date 30 November 2021

• Payment date 15 December 2021

1. Adjusted for impacts of adopting IFRS 16

2. FY20 includes debt underwrite costs of $6.3m in relation to the Rip Curl acquisition

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17 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

18 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

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Rip Curl result underpinned by growth in surfing

Rip Curl owned for a full twelve months in FY21 compared to nine months in FY20

	Pre IFRS 16
RIP CURL NZD $m	FY21 FY20 Aug 20 to Jul 21 Nov 19 to Jul 20 Var %
SALES	490.4 315.7 55.3%
GROSS PROFIT Gross margin	288.9 178.5 61.9% 58.9% 56.5%
OPERATING EXPENSES % of Sales	(222.6) (166.8) 33.5% 45.4% 52.8%
EBITDA (underlying) EBITDA margin %	66.3 11.7 468.1% 13.5% 3.7%
EBIT (underlying)	56.9 4.2 1252.4%
EBIT margin %	11.6% 1.3%

Rip Curl FY21 Sales Mix

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Other Rest of World
1% 9%
Wholesale
43% Europe
18%
BY BY
CHANNEL REGION
AU &
NZ
Retail 48%
stores North
Online 49% America
7% 25%
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• Outperforming acquisition expectations

• Total sales 10.5% above the prior comparable twelve months, with sales continuing above pre-COVID levels in the key regions of North America and Europe during the Northern Hemisphere summer season

• Direct to consumer same store sales growth (incl. online) +19.2%[1]

• Online sales $33.5m, representing 12.5% of DTC sales. Online sales 4 year CAGR 44.4%

• Wholesale sales 9.6% above pcp despite a COVID disrupted sellin period for 1H FY21

• Wholesale forward order books significantly above pre-COVID levels

• Sales back to pre-COVID levels, even though stores in airports, Australia, Hawaii, Asia and parts of Europe, have continued to be affected in FY21

• Gross margin improvement due to increased direct to consumer mix

1. Same store sales are measured at constant currency. Same store sales are for the 53 full weeks ended 1 August 2021

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19 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Continued innovation excellence on land and in water

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Icons of Surf

Mirage Ultimate

Surf Series

A selection of the most iconic logos in the industry These products blend timeless design and bold graphics to create one of the strongest volume driving collections in surf

The most unique and innovative swimwear in surf, tested by the world’s best.

Premium Italian Lycra offers support and flexibility with water repellent Glide neoprene panels providing comfort, compression and wind chill reduction

Technical surf inspired products

From a surf trip down the coast, to a day on the beach, these products are engineered with wet dry surf functionality, hydrophobic materials and signed off with the most respected core graphic - the wetsuit logo

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20 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Focus on leadership and technology

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The Rip Curl World Surf League (WSL) Finals

The all new E7 Heatseeker

For the first time in history, the WSL world title was decided in a one-day competition, with the top 5 men and women going head to head at Trestles, in surfing’s “Superbowl” sponsorship. It was broadcast live, replayed On Demand and showcased on linear TV networks like Foxsports and ABC in the USA. The Rip Curl WSL Finals included both Olympic Gold Medallists, and 7 out of 10 in the field competed at the Tokyo Games, taking the mainstream media momentum into the event

Combining the best of Rip Curl’s stretch and warmth technologies, this is the single best wetsuit Rip Curl has ever produced. The new “Imagined By The Best” campaign starring 3 X World Champion Mick Fanning and his Australian protégé Molly Picklum is set to launch the E7 Heatseeker across all digital, outdoor, retail and broadcast channels in the Northern Hemisphere this September

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21 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

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22 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Kathmandu result reflects COVID impacts

KATHMANDU Pre IFRS 16 NZD$m FY21 FY20 Var %	KATHMANDU Pre IFRS 16 NZD$m FY21 FY20 Var %
SALES	354.0 426.4 (17.0%)
GROSS PROFIT Gross margin	224.7 265.1 (15.2%) 63.5% 62.2%
OPERATING EXPENSES % of Sales	(183.9) (198.2) (7.2%) 52.0% 46.5%
EBITDA (underlying) EBITDA margin %	40.8 66.9 (38.9%) 11.5% 15.7%
EBIT (underlying)	26.3 51.4 (48.8%)
EBIT margin %	7.4% 12.0%

• Total sales by market (at constant exchange rates):

• Australia -18.0%, with 4,700 lost trading days in FY21 vs 4,400 in FY20

• New Zealand -14.1%, with 400 lost trading days in FY21 vs 2,450 in FY20

• Online sales $56.8m, representing 15.8% of DTC sales. Online sales 4 year CAGR 14.3%

• Same store sales (incl. online) -18.2%[1] full year (2H -3.1%)

• Strong winter launch momentum in conjunction with brand relaunch prior to Australian lockdowns resulted in 2H insulation growth vs FY19 despite store closures

• Reduced demand for travel related products

Kathmandu Sales Mix FY21

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Online
16%
BY
CHANNEL
Retail
stores
84%
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• 2H gross margin improvement of 240 bps (2.4% of sales)

  • Operating expenses include the benefits from restructuring, rent abatements, and net government wage assistance

• Inventory well controlled, ending the year in line with expectations

1. Same store sales are measured at constant currency. Same store sales are for the 53 full weeks ended 1 August 2021

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23 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Building a strong, meaningful, differentiated brand

Strong brand fundamentals:

Number 1 outdoor brand in Australasia[1 ] :

• Kathmandu dominates the category in both AU and NZ; leading the market for top of mind awareness consideration, preference and equity

• 97% brand awareness in Australia and 100% in New Zealand

Active and engaged customer base:

• NPS 76 across all customer groups, 4 points above last year, 169k responses

• 2.1 million active Summit Club members. 4-year CAGR 6.8%

• Over 70% of Kathmandu sales from Summit Club members

• Summit Club members spend c. 30% more per transaction than non-members

Setting the foundations for brand growth:

• Integrated brand campaign launched May 2021 generating 30 million views via paid and owned channels

• Website relaunched Aug 2021 improved user experience, speed and world class design

• Summit Club relaunch planned 1H FY22

1. Kantar Brand Health Report Mar-Apr 2021

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24 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Year-round product desirability and innovation

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• Establish year-round relevance and excitement

• Become in summer, what we are in winter

• Activate on the 8 months of ‘transitional’ weather opportunity

• • Reduce reliance on travel activity

• Reach a younger, more diverse, more cosmopolitan consumer

• Generate desirability, specialness, and customer full-price urgency

• Use International aspirations to drive growth in ANZ, and vice versa

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SUN-Stopper. Stop the sun, not the fun

• A brand-new critical franchise in the Kathmandu line

• Chemical-free UPF 50+ sun protection in fun colours, easy wearing, versatile silhouettes. For her, for him, for kids

• Serious protection for not-so-serious fun!

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Kathmandu x Mulga x Beach Retreat

• Nobody conjures the playful vibe of summer more than Sydney-based artist Mulga

• His whimsical characters and cheerful colours remind us to not take ourselves so seriously when we’re ‘out there’

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25 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

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26 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Oboz result underpinned by strong hiking participation

OBOZ Pre IFRS 16 NZD $m FY21 Reported FY21 Constant Currency FY20 Reported Var % Constant Currency	OBOZ Pre IFRS 16 NZD $m FY21 Reported FY21 Constant Currency FY20 Reported Var % Constant Currency
SALES	78.4 86.1 59.4 44.9%
GROSS PROFIT Gross margin	28.0 30.7 23.5 30.7% 35.7% 35.7% 39.6%
OPERATING EXPENSES % of Sales	(16.2) (17.8) (15.9) 11.7% 20.6% 20.6% 26.8%
EBITDA (underlying) EBITDA margin %	11.8 12.9 7.6 70.3% 15.0% 15.0% 12.8%
EBIT (underlying) EBIT margin %	11.4 12.6 7.3 72.6% 14.6% 14.6% 12.3%

Sales

• Outperforming acquisition expectations

• Oboz sales above last year with a strong recovery from COVID closures. Also driven by successful product innovation strategy and diversification of customer base

• Gross margin impacted by significant one-off air freight costs (c. $1.5m) to support key customer deliveries of winter seasonal styles in 1H FY21, plus increased ocean freight costs due to supply chain congestion in 2H FY21

• Gross margin to normalise to historical levels when global supply chain congestion and related shipping rates come back into line

• Forward order book at highest level ever, allowing investment to support future growth

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NZD $m constant currency [1]
+16.8% CAGR (FY18 – FY21) 86.1
70.1
59.4
54.0
FY18 FY19 FY20 FY21
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1. Constant currency uses NZD/USD FY20 conversion rate 0.636 to convert Oboz USD results to NZD (FY21 actual conversion rate 0.699)

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27 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

New online store and broader product appeal

Strong product launches and robust brand activations lead footwear brand to new heights

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Product highlights:

Sypes Franchise delivers: Highlight of Spring/Summer 2021 line is strong across North America

Mountain Town Insulated: New Fall 2021 styles Andesite and Sphinx experience breakthrough pre-season sales

Sell-in SS22 sets records: Led by Sawtooth X and new Whakatā franchise, Spring/Summer debuts with record orders

• Big Sky II brings Montana roots to market for Fall 2021 launch

Brand and marketing highlights:

• 20% growth in social media audience in 2H FY21

• Oboz Trails Experience launches in 7 markets + CDT Project gets Oboz Team on the trail this summer and fall

First ever collab with Black Folks Camp Too launching in Sept

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28 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Outlook

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29 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

COVID continues to impact the global business

• Lost trading days due to COVID lockdown restrictions FY21 c. 13,000 vs FY20 c. 15,000

• Widespread lockdowns in NSW, VIC, ACT and NZ to date will impact the first half result

• Trade in airport locations and emerging markets of Brazil, Indonesia and Thailand expected to remain significantly impacted by COVID

• Northern Hemisphere retail stores managing with staff constraints and sporadic closures as positive team cases arise

• COVID restrictions impacting supply chain:

• Reduced factory capacity due to enforced closures stretching lead times

• Freight congestion leading to delivery delays

• Increased freight costs

• The Group continues to proactively manage the impacts of COVID daily

• Our key priority is the health and safety of our staff, customers and suppliers

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30 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Key FY22 priorities

Build Global Brands

Elevate Digital

• Launch Rip Curl loyalty programme in ANZ

• Increase investment in marketing and sustainability initiatives to drive brand awareness

• Re-launch Kathmandu Summit Club

• Launch Kathmandu in mainland Europe and Canada

• Implement unified commerce

• • Launch innovative products to capabilities throughout ANZ capitalise on growing •

• participation in the outdoors, European online re-platform beach and surfing

• Increased use of data insights and analysis and personalisation

Leverage Operational Excellence

• Complete Group executive structure to build out group capabilities

• Align ANZ technical platforms between brands c. $10m core systems capital expenditure in FY22

• Implement clear margin and expense targets to drive towards 15% EBITDA margins

Lead in ESG

• Extend Kathmandu B Corp accreditation to all Group brands

• Set science based targets

• Complete and implement Rip Curl brand ESG strategy

• Expand marketplace presence

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31 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Trading update and outlook

Trading update

• Same store sales (incl. online) for the six full weeks to 12 September 2021 were significantly impacted by ongoing Australasian COVID lockdowns: • Rip Curl -12.8% overall, +3.6% adjusted for COVID lockdowns[1]

• Kathmandu -19.9% overall, +18.3% adjusted for COVID lockdowns[1]

• Online sales growth to date +25.9% (Rip Curl +16.8%, Kathmandu +33.7%)

• Kathmandu sales strong in regions less affected by COVID restrictions

• COVID restrictions impacting suppliers in Asia. The Group is actively managing supply chain to minimise impact where possible

• Impact of freight costs on gross margin expected to be offset by improved foreign exchange rates

• First half FY22 profit expected to be below first half FY21 due to ongoing COVID impacts

• Both Rip Curl and Oboz wholesale order books are significantly above pre-COVID levels

Outlook

• All brands are well positioned to capitalise on growing participation in outdoor, beach and surfing activities

• Capitalise on opportunities from the global COVID vaccination rollout:

• Easing COVID restrictions in key growth markets: Europe (Rip Curl and Kathmandu) and North America (Rip Curl and Oboz)

• International travel restrictions expected to ease as FY22 progresses, benefiting the Kathmandu brand and emerging markets for Rip Curl

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

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32 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Questions

33 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Appendix 1: Statutory to underlying profit & loss

GROUP NZD$m Sales Gross profit Gross margin Operating expenses % of sales EBITDA EBITDA margin % EBIT EBIT margin % NPAT	FY21 IFRS 16 Transaction Other Statutory Leases*1 Costs*2 one-offs Underlying 922.8 - - - 922.8 541.6 - - - 541.6 58.7% 58.7% (333.6) (94.7) - - (428.3) 36.2% 46.4% 208.0 (94.7) - - 113.3 22.5% 12.3% 92.2 (8.4) - - 83.8 10.0% 9.1% 63.4 1.3 1.5 - 66.3	FY20
		IFRS 16 Transaction Other Statutory Leases*1 Costs*3 one-offs*3 Underlying
		801.5 - - - 801.5
		467.0 - - - 467.0 58.3% 58.3%
		(317.6) (82.3) 11.6 4.6 (383.7) 39.6% 47.9%
		149.5 (82.3) 11.6 4.6 83.4 18.7% 10.4%
		45.9 (5.9) 11.6 4.6 56.2 5.7% 7.0%
	63.4 1.3 1.5 - 66.3	8.9 2.6 16.9 3.2 31.5

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

2. FY21 interest costs include $2.1m one-off bank facility underwriting costs ($1.5m net of tax)

3. In FY20, $11.6m was incurred in relation to the acquisition and integration of Rip Curl, including establishment of a new Group structure. Further one-off costs of $4.6m were incurred in FY20 in relation to restructuring support office roles

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34 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Appendix 2: Segment note

SALES

EBIT

FY21(NZD$'000)	Outdoor	Surf	Corporate	Total
SALES per segment note SALES (underlying)	432,354 490,438 - 922,792
	432,354 490,438 - 922,792

FY20(NZD$'000)	Outdoor	Surf	Corporate	Total
SALES per segment note SALES (underlying)	485,785 315,739 - 801,524
	485,785 315,739 - 801,524

FY21(NZD$'000)	Outdoor	Surf	Corporate	Total
EBIT per segment note 43,897 59,122 (10,835) 92,184 IFRS 16 Leases Adjustment (6,169) (2,195) - (8,364) Transaction Costs & Abnormals - - - - EBIT (underlying) 37,728 56,927 (10,835) 83,820
FY20(NZD$'000)	Outdoor	Surf	Corporate	Total
EBIT per segment note 64,901 (593) (18,435) 45,873 IFRS 16 Leases Adjustment (7,787) 1,871 - (5,916) Transaction Costs & Abnormals 1,546 2,933 11,722 16,200 EBIT (underlying) 58,660 4,210 (6,713) 56,157

1. Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results 2. In FY20, $11.6m was incurred in relation to the acquisition and integration of Rip Curl, including establishment of a new Group structure. Further one-off costs of $4.6m were incurred in FY20 in relation to restructuring support office roles

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35 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Appendix 3: Segment summary

NZD$m	FY21 FY20 Var %
Kathmandu sales 354.0 426.4 (17.0%) Oboz sales 78.4 59.4 31.9%
Outdoor segment sales 432.4 485.8 (11.0%) Surf segment sales 490.4 315.7
Total segment sales	922.8 801.5 15.1%
Kathmandu underlying EBIT 26.3 51.4 (48.8%) Oboz underlying EBIT 11.4 7.3 57.0%
Outdoor segment underlying EBIT 37.7 58.7 (35.7%) Surf segment underlyingEBIT 56.9 4.2
Total segment underlying EBIT	94.7 62.9 50.6%
Corporate costs (10.8) (6.7)
Group underlying EBIT	83.8 56.2 49.3%

Gross Profit $ Mix FY21

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Oboz Other Rest of World
5% 3% 7%
Europe
Wholesale 8%
24%
Kathmandu
42%
North
BY BY America BY
BRAND CHANNEL 18% REGION
Online
11% Retail AU & NZ
Rip Curl stores 67%
53% 62%
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• Outdoor segment includes both Kathmandu and Oboz brands

• Surf segment contains the Rip Curl brand, including the Ozmosis group of multi-brand surf stores operated by Rip Curl in Australia

• Corporate costs for a full 12 months of Rip Curl ownership include director and listing costs, plus amortisation of Rip Curl customer relationships

1. Refer to Appendix 2 for a reconciliation of Statutory to underlying segment Sales and EBIT

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36 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Appendix 4: Balance sheet

Balance Sheet(NZD$m)	Jul 21	Jul 20
Inventories	216.5	228.8
Property, plant and equipment	79.3	88.5
Right of Use Asset (IFRS 16)	242.7	258.7
Intangible assets	688.6	689.9
Other assets	95.5	89.6
Total assets(excl. cash)	1,322.6	1,355.5
Net interest bearing liabilities and cash	37.0	(9.4)
Lease Liability (IFRS 16)	(279.3)	(298.6)
Other non-current liabilities	(101.0)	(100.8)
Current liabilities	(160.4)	(167.5)
Total liabilities(net of cash)	(503.7)	(576.3)
Net assets	818.9	779.2

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37 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION

Important notice and disclosure

This presentation prepared by Kathmandu Holdings 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 Group of Companies, its 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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38 | KATHMANDU HOLDINGS FY21 RESULTS PRESENTATION