Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu Holdings — Macquarie Conference 2017
28 slides from Kmd Brands's conference presentation, May 4, 2017
Slide 1: Macquarie Presentation May 2017
Macquarie For personal use only Presentation May 2017
Slide 2: Contents
May 2017 For personal use only 1. Company Overview Contents 2. Key Strengths 3. Commercial Channels 4. Market Overview 5. Financial and Key Ratios 6. Key Strategies 7. Trading Update 8. Questions 2
Slide 3: 1. Company Overview
For personal use only 1. Company Overview 3
Slide 4: 1. Company Overview
1. Company Overview Australasian market leader in adventure travel and outdoor retail, For personal use only » established in 1987 » Dual listed on the ASX and NZX in 2009 » Sales growth driven by store rollout and same store sales growth » Sales CAGR since listing +11.2%*1 (AU +14.8%, NZ +7.0%) Sal
Slide 5: 2. Key Strengths
For personal use only 2. Key Strengths 5
Slide 6: 2. Key Strengths - Distinctive products
2. Key Strengths - Distinctive products For personal use only We design great, innovative, distinctive and sustainable quality products, » Design-led business with an in-house team of designers » Bring solutions to customers, focussed on adventure travel » Balanced between function and style » Core
Slide 7: 2. Key Strengths - Customer centric approach
2. Key Strengths - Customer centric approach For personal use only » Summit Club loyalty programme has grown to 1.7m active members, over 1.0m active members in Australia » Customer segmentation – balanced customer profile across all demographics » Objective to optimise market share with family adve
Slide 8: 2. Key Strengths - Authentic and inspirational brand
2. Key Strengths - Authentic and inspirational brand For personal use only » New Zealand heritage with deep roots » Brand distinctiveness through expertise in adventure travel » Leading outdoor brand awareness and preference in Australasia » ‘Coast to Coast’ iconic NZ adventure race main sponsor » S
Slide 9: 2. Key Strengths - Core value of sustainability
2. Key Strengths - Core value of sustainability Australasian industry leadership in sustainability For personal use only » Our goal: » Recognition: awarded “Large Business Sustainability Leaders in Australia” by the Banksia Foundation, Australia’s longest running and arguably most prestigious sustai
Slide 10: 2. Key Strengths - Effective sales model
2. Key Strengths - Effective sales model For personal use only » Offer great value to customers, part of our DNA » Aligns sales with naturally key high footfall periods (Christmas, Easter, Winter) » De-risks the business model by reducing reliance on the winter season only » Promotions designed to p
Slide 11: 2. Key Strengths – A great team
2. Key Strengths – A great team For personal use only » 2,000 team members » Diversity of backgrounds - 35 nationalities » Balance between lifestyle and focus on performance » Key focuses: CUSTOMER AUTHENTICITY & CENTRICITY DISTINCTIVENESS COST CONTROL CLEAR KPI’s & & EFFICIENCIES METRICS 11
Slide 12: 2. Key Strengths - logistics capabilities and systems
2. Key Strengths - logistics capabilities and systems For personal use only » Ongoing sustainable investment in systems capability » New Australian distribution centre with automated sortation capabilities 12
Slide 13: 3. Commercial Channels
3. Commercial Channels For personal use only
Slide 14: 3. Commercial Channels – Stores
3. Commercial Channels – Stores For personal use only Extensive retail store network NT 1 » Expertise in vertical retail QLD » A business with scale 18 » Profitable store network WA » Balanced between destination and shopping centre 12 NSW 33 locations ACT NI SA 4 35 7 VIC 35 SI Key Competitor Store
Slide 15: 3. Commercial Channels - Online
3. Commercial Channels - Online For personal use only A fast growing online business » Channel agnostic offer: one range available to all customers wherever they choose to shop » Online sales as a % of country sales are 7.7% Australia, 6.0% New Zealand » Continual reinvestment in capabilities and sy
Slide 16: 4. Market Overview
For personal use only 4. Market Overview 16
Slide 17: 4. Market Overview
4. Market Overview For personal use only Australia » Significant capital investments over the last ten years in expanding store network » Scale is a key asset » High brand awareness established, focus on building brand preference » Opportunity remains to grow market share and increase penetration »
Slide 18: 5. Financial and Key Ratios
5. Financial and Key Ratios For personal use only 18
Slide 19: 5. Financial and Key Ratios
5. Financial and Key Ratios For personal use only NZD $m FY12 FY13 FY14 FY15 FY16 SALES 347.1 384.0 392.9 409.4 425.6 Gross margin 63.2% 63.0% 63.1% 61.5% 62.6% » Long-term target range 61% to 63% Operating expenses 44.1% 43.8% 44.5% 50.0% 47.4% » Operating costs as a % of sales an ongoing key focus
Slide 20: 6. Key Strategies
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Slide 21: 6. Key Strategies
6. Key Strategies For personal use only A business in transformation: RETAILER TO A BRAND LOCAL TO A GLOBAL BUSINESS BRICKS & MORTAR TO OMNICHANNEL OPENING TO OPTIMISING STORES TRADITIONAL TO DIGITAL MARKETING BROADCASTING TO ENGAGING 21
Slide 22: 6. Key Strategies
6. Key Strategies For personal use only “Design great, innovative, distinctive and sustainable quality products” “Be customer-centric in everything we do” GROWTH STRATEGIES Continuous improvement Growth initiatives » Brand and customer » International » Store optimisation » Marketplaces » Pricing an
Slide 23: 6. Key Strategies – Continuous improvement
6. Key Strategies – Continuous improvement For personal use only » Elevate brand distinctiveness through product design and innovation » Focus on our expertise in adventure travel Brand and customer » Inspire our customers and engage with our Summit Club members » Enhance the customer service experi
Slide 24: 6. Key Strategies – Continuous improvement
6. Key Strategies – Continuous improvement For personal use only » Provide a channel agnostic offer: one range available to all customers wherever they choose to shop » Digital marketing cloud tools deployed 1H FY17 providing targeted email Connected capability customer » Responsive website launched
Slide 25: 6. Key Strategies – Growth initiatives
6. Key Strategies – Growth initiatives For personal use only » Identify and promote distinctive brand and product attributes that make Kathmandu relevant internationally » Tailor capital light entry strategies for key growth markets: » Direct to customer online channel launched in the US Internation
Slide 26: 7. Trading Update
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Slide 27: 7. Trading Update
7. Trading Update For personal use only STRONG THIRD QUARTER PERFORMANCE » Total Group sales for the 13 weeks 30 January to 30 April up 11.9% YOY at constant exchange rates (9.3% at actual exchange rates) » Same store sales for the same period up 11.5% YOY at constant exchange rates (9.0% at actual
Slide 28: Thank you!
For personal use only Thank you!