Kmd Brands Limited · NZX:KMD

Kmd Brands — Kathmandu Holdings — Merger or Acquisition (March 2018)

24 slides from Kmd Brands's merger presentation, Mar 20, 2018

1. Slide 1: Acquisition of Oboz Footwear LLC and Equity Raising

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - For personal use only Investor Presentation vFF.pptx ACQUISITION OF OBOZ FOOTWEAR LLC AND EQUITY RAISING 20 MARCH 2018 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

2. Slide 2: Important Notice and Disclaimer

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx IMPORTANT NOTICE AND DISCLAIMER For personal use only Disclaimer This presentation has been prepared by Kathmandu Holdings Limited (NZ company number 2334209, ABN 139

3. Slide 3: Contents

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - For personal use only Investor Presentation vFF.pptx Contents 1. Oboz Overview 2. Equity Raising Overview A. Trading Update B. Key Risks C. Foreign Selling Restrictions 3

4. Slide 4: Transaction Summary

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx TRANSACTION SUMMARY For personal use only » Unconditional binding agreement to acquire US-based Oboz Footwear LLC (“Oboz”) for a base consideration of US$60m and “Desi

5. Slide 5: Strategic Rationale

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx STRATEGIC RATIONALE For personal use only » Consistent with stated international growth strategy to pursue lower risk wholesale model International growth » Advances K

6. Slide 6: Pro-Forma Combination Analysis

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx PRO-FORMA COMBINATION ANALYSIS CY17 Kathmandu Standalone CY17 Pro Forma1 For personal use only ​International ​International 0.7% ​North America 8.3% 0.8%  Geographic

7. Slide 7: 1. Oboz Overview

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 1. OBOZ OVERVIEW For personal use only 7

8. Slide 8: 1. Overview of Oboz

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 1. OVERVIEW OF OBOZ For personal use only » Oboz designs, sources, and sells footwear for backpacking, hiking, travel, winter and general outdoor wear » Oboz was found

9. Slide 9: 1. Overview of Oboz (cont.)

   IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 1. OVERVIEW OF OBOZ (CONT.) For personal use only Key distribution partners Product categories HIKING FOOTWEAR (CORE) LIFESTYLE SANDALS US - Traditional Primary US Dis

10. Slide 10: 1. Financial Profile of Oboz

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 1. FINANCIAL PROFILE OF OBOZ For personal use only Key Historical Financials1,2 Oboz Historical Revenue Growth (US$m, CY)3 US$m CY16 CY17 Growth Revenue 22.2 30.3 36.5

11. Slide 11: 1. Summary Investment Highlights

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 1. SUMMARY INVESTMENT HIGHLIGHTS For personal use only Oboz is a high growth, capital light international wholesaler with distribution capability into highly complemen

12. Slide 12: 2. Equity Raising Overview

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 2. EQUITY RAISING OVERVIEW For personal use only 12

13. Slide 13: 2. Transaction Summary

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 2. TRANSACTION SUMMARY For personal use only » Fully underwritten institutional placement (“Placement”) to raise $40m via the issue of ~18.5m new shares Offer size and

14. Slide 14: 2. Transaction Funding

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 2. TRANSACTION FUNDING For personal use only Transaction uses1, 2 Transaction sources1, 2 US$m $m US$m $m Base Purchase Price 60.0 85.7 Placement Proceeds 28.0 40.0 “B

15. Slide 15: 2. Transaction Timetable

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx 2. TRANSACTION TIMETABLE For personal use only Event Date “Design great, innovative, distinctive and sustainable quality products” Release of Kathmandu’s 1H FY18 Resul

16. Slide 16: A. Trading Update

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx A. TRADING UPDATE For personal use only 16

17. Slide 17: A. Trading Update

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx A. TRADING UPDATE For personal use only » Kathmandu has released its 1H FY18 results in a separate announcement lodged with the NZX / ASX » A trading update was includ

18. Slide 18: B. Key Risks Relating to the Acquisition

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx B. KEY RISKS RELATING TO THE ACQUISITION For personal use only 18

19. Slide 19: B. Key Risks Relating to the Acquisition

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx B. KEY RISKS RELATING TO THE ACQUISITION » This section sets out the key risks Kathmandu has identified relating to the acquisition of the shares in Oboz Footwear LLC.

20. Slide 20: B. Key Risks Relating to the Acquisition (cont.)

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx B. KEY RISKS RELATING TO THE ACQUISITION (CONT.) For personal use only Risk Details “Design Reliance on Information Provided » Whilegreat, Kathmandu innovative, distin

21. Slide 21: B. Key Risks Relating to the Acquisition (cont.)

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx B. KEY RISKS RELATING TO THE ACQUISITION (CONT.) For personal use only Risk Details Reliance on single category “Design great, » Oboz’s innovative, business relates to

22. Slide 22: C. Foreign Selling Restrictions

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx C. FOREIGN SELLING RESTRICTIONS For personal use only 22

23. Slide 23: C. Foreign Selling Restrictions

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx C. FOREIGN SELLING RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would b

24. Slide 24: C. Foreign Selling Restrictions (cont.)

    IBDROOT\PROJECTS\IBD-HK\PEKAN2018\614988_1\Process documents\Investor presentation\180320 Kathmandu - Investor Presentation vFF.pptx C. FOREIGN SELLING RESTRICTIONS (CONT.) Singapore For personal use only This document and any other materials relating to the New Shares have not been, and will not be

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