Kmd Brands Limited · NZX:KMD

Kmd Brands — FY2022 Earnings Presentation

36 slides from Kmd Brands's earnings presentation, Sep 20, 2022

  1. Slide 1: FY22 Results Presentation

    For personal use only (Formerly Kathmandu Holdings Limited) FY22 RESULTS PRESENTATION 20 SEPTEMBER 2022

  2. Slide 2: Contents

    CONTENTS For personal use only 1. OUR GROUP 3 2. HIGHLIGHTS 9 3. GROUP FINANCIALS 13 4. RIP CURL 19 5. KATHMANDU 22 6. OBOZ 25 7. OUTLOOK 28 8. APPENDICES 32 2 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  3. Slide 3: Section 1: Our Group

    For personal use only SECTION 1 OUR GROUP 3 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  4. Slide 4: Our Purpose and Vision

    For personal use only OUR PURPOSE OWNER OF Inspiring people to explore LEADING GLOBAL and love the outdoors OUTDOOR BRANDS OUR VISION To be the leading family of global outdoor brands - designed for purpose, driven by innovation, best for people and planet 4 F Y 2 2 R E S U LT S P R E S E N TAT I O

  5. Slide 5: Brands with Global Reach

    BRANDS WITH GLOBAL REACH For personal use only We operate over 300 stores globally, and our brands are sold in over 8,500 locations EUROPE ~$100m Sales NORTH AMERICA 22 Owned Stores 16 Licensed Stores +2,200 Wholesale Doors ~$200m Sales 30 Owned Stores ASIA 16 Licensed Stores +3,900 Wholesale Doors

  6. Slide 6: Group Strategy

    GROUP STRATEGY For personal use only BUILD GLOBAL ELEVATE LEVERAGE LEAD IN BRANDS DIGITAL OPERATIONAL ESG EXCELLENCE Expand global footprint and Invest in Group digital Deliver operational excellence Lead in environmental, social invest in world class brand and platforms to deliver a truly to all br

  7. Slide 7: B Corp Update

    B CORP UPDATE For personal use only WHAT IS A B CORP? • B Corp certified companies are for-profit organisations that use the power of business to build a more inclusive and sustainable economy WHY BECOME A CERTIFIED B CORP? • Certified B Corps meet stringent standards of verified social and environm

  8. Slide 8: ESG Strategy

    ESG STRATEGY For personal use only Positively impact the wellbeing of people and places Transition to a low carbon future Eliminate the take-make-waste approach to business FOCUS AREAS: Transparency People-centred, equitable, and inclusive workplace culture Reduce emissions aligned to Paris Agreemen

  9. Slide 9: Section 2: Highlights

    For personal use only SECTION 2 HIGHLIGHTS 9 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  10. Slide 10: FY22 Group Summary Highlights

    FY22 GROUP SUMMARY For personal use only HIGHLIGHTS • Record Group sales result: o Kathmandu highest-ever sales for Q4 o Rip Curl sales +9.5% to $536m o Record order demand for Oboz with a scaling up of supplier capacity • Record 2H Group sales and underlying EBITDA • Gross margin maintained, despit

  11. Slide 11: Q4 Return to Strong Sales Growth

    Q4 RETURN TO STRONG SALES GROWTH For personal use only 40.0% 40.0% 40.0% 30.0% 30.0% 24.5% 30.0% 20.0% 18.1% 20.0% 20.0% 17.2% 11.6% 12.2% 12.1% 9.0% 10.0% 10.0% 10.0% 0.0% 0.0% 0.0% -80.2% -41.3% -10.0% -3.1% -10.0% -10.0% -11.6% -20.0% -20.0% -20.0% -19.0% -30.0% -30.0% -30.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3

  12. Slide 12: Operational Achievements in FY22

    OPERATIONAL ACHIEVEMENTS IN FY22 For personal use only BUILD GLOBAL ELEVATE LEVERAGE OPERATIONAL LEAD IN BRANDS DIGITAL EXCELLENCE ESG B Corp applications submitted for all Leaders appointed in North America Group Executives appointed to brands New Loyalty Management System and Europe to oversee gro

  13. Slide 13: Section 3: Group Financials

    For personal use only SECTION 3 GROUP FINANCIALS 13 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  14. Slide 14: Profit & Loss

    PROFIT & LOSS For personal use only KMD BRANDS Statutory Underlying RETURN TO SALES GROWTH FOLLOWING COVID DISRUPTION NZ $m *2 FY22 FY22 FY21 Var % • Positive Q4 for all brands, particularly Kathmandu • Rip Curl achieved solid annual sales growth across all channels SALES 979.8 979.8 922.8 6.2% • Ob

  15. Slide 15: Sales Growth Through Diversified Channels

    SALES GROWTH THROUGH DIVERSIFIED CHANNELS For personal use only TOTAL GROUP REPORTED SALES (NZ $m) 979.8 922.8 801.5 Oboz 6% DIVERSIFIED BY: 538.9 492.9 • Brands BY • Channels BRAND • Geography Kathmandu 39% Rip Curl 55% FY18 FY19 FY20 FY21 FY22 incl. 4 months of incl. 9 months Oboz of Rip Curl Othe

  16. Slide 16: Digital Acceleration

    DIGITAL ACCELERATION For personal use only ONLINE SALES (NZ $m) ONLINE SALES GROWTH BEYOND COVID STEP-CHANGE 140.0 Online sales % of DTC sales 16.5% 20.0% • Kathmandu +47.1% online sales growth since FY19 (pre-COVID), and now 15.8% 14.7% 120.0 15.0% comprising 18.7% of sales 100.0 8.9% 105.9 109.6 •

  17. Slide 17: Strong Balance Sheet

    STRONG BALANCE SHEET For personal use only *1 INVENTORY Key Balance Sheet items and ratios • Strategic decision to temporarily build stock positions to: NZ $m Jul 22 Jul 21 o Meet forward wholesale orders and expected retail demand. Wholesale makes up almost one-third of Group sales Net working capi

  18. Slide 18: Full Year Dividend Up 20%

    FULL YEAR DIVIDEND UP 20% For personal use only Cash Flow (NZ $m) FY22 FY21 Dividends declared (NZ $m) NPAT 36.8 61.3 Interim Final Change in working capital (71.3) 17.0 42.5 36.2 35.5 Non-cash items 116.3 99.8 32.9 21.3 Operating cash flow 81.8 178.1 27.2 21.3 24.8 Adjusted operating cash flow *1 (

  19. Slide 19: Section 4: Rip Curl

    For personal use only SECTION 4 RIP CURL 19 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  20. Slide 20: Rip Curl Profit & Loss

    RIP CURL PROFIT & LOSS For personal use only Pre IFRS 16 TOTAL SALES +9.5% WITH GROWTH ACROSS ALL CHANNELS NZ $m FY22 FY21 Var % • Europe, Hawaii, and South-East Asia achieved strong sales growth SALES 536.8 490.4 9.5% • North America achieved sales growth despite wetsuit shortages, port congestion

  21. Slide 21: Rip Curl Brand and Product Achievements

    RIP CURL BRAND AND PRODUCT ACHIEVEMENTS For personal use only WSL FINALS WOMENS GROWTH WETSUIT TAKEBACK GOES GLOBAL • 2022 Rip Curl World Surf League (‘WSL’) • Women's sales growth +19% YOY • In 12 months, Australian customers returned Finals becomes the most watched day of around 2,500 wetsuits for

  22. Slide 22: Section 5: Kathmandu

    For personal use only SECTION 5 KATHMANDU 22 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  23. Slide 23: Kathmandu Profit & Loss

    KATHMANDU PROFIT & LOSS For personal use only Pre IFRS 16 Best-ever winter season performance, with Q4 sales and gross margin both NZ $m FY22 FY21 Var % above FY19 (pre-COVID) SALES 381.6 357.4 6.8% TOTAL SALES +6.8% WITH STRONG REBOUND AFTER LOCKDOWNS EBITDA (underlying) 36.4 37.9 (4.1%) • Australi

  24. Slide 24: Kathmandu Brand and Product Achievements

    KATHMANDU BRAND AND PRODUCT ACHIEVEMENTS For personal use only SUMMER CAMPAIGN BIO-DOWN JACKET SUSTAINABILITY LEADERSHIP • Summer-specific colourful and on-trend • Industry-first biodegradable down-filled • B Corp certified industry leader product franchises successfully launched jacket. Breakthroug

  25. Slide 25: Section 6: Oboz

    For personal use only SECTION 6 OBOZ 25 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  26. Slide 26: Oboz Profit & Loss

    OBOZ PROFIT & LOSS For personal use only Pre IFRS 16 SIGNIFICANT IMPACT FROM UNPRECEDENTED AND TRANSITORY SUPPLY CHALLENGES NZ $m FY22 FY21 Var % • Wholesale and online sales heavily impacted by three-month COVID closure of SALES 61.3 75.0 (18.2%) Vietnam factories and compounded by international fr

  27. Slide 27: Oboz Brand and Product Achievements

    OBOZ BRAND AND PRODUCT ACHIEVEMENTS For personal use only DISTRIBUTION EXPANSION PRODUCT RANGE EXPANSION ONE MORE TREE • Online direct-to-consumer sales growth, • Fast and Light, and Camp product • One tree planted for every pair of footwear with inventory availability, product launches achieved str

  28. Slide 28: Section 7: Outlook

    For personal use only SECTION 7 OUTLOOK 28 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  29. Slide 29: Strategic Priorities FY23

    STRATEGIC PRIORITIES FY23 For personal use only BUILD GLOBAL ELEVATE LEVERAGE LEAD IN BRANDS DIGITAL OPERATIONAL ESG EXCELLENCE • Rip Curl membership programme • Continue the global rollout of new • Merger of fulfilment centres in • B Corp certification for all brands rollout in Australasia Group-wi

  30. Slide 30: Outlook

    OUTLOOK For personal use only TRADING UPDATE POSITIVE FY23 OUTLOOK • Revenue and earnings growth, continuing momentum from 2H FY22 AUG 22 vs AUG 21 vs AUG 19*1 TOTAL SALES (COVID-impacted) (pre-COVID) • Uninterrupted Q1 trade cycling COVID closures last year Group 44.2% 10.3% • Return of travel to b

  31. Slide 31: Questions

    For personal use only QUESTIONS 31 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  32. Slide 32: Section 8: Appendices

    For personal use only SECTION 8 APPENDICES 32 F Y 2 2 R E S U LT S P R E S E N TAT I O N

  33. Slide 33: Appendix 1: Statutory to Underlying Profit & Loss

    APPENDIX 1: STATUTORY TO UNDERLYING PROFIT & LOSS For personal use only GROUP FY22 FY21 IFRS 16 Transaction Other IFRS 16 Transaction USA NZ $m Statutory Leases *1 Costs Abnormals Underlying Statutory Leases *1 Costs *2 tax benefit *3 Underlying SALES 979.8 - - - 979.8 922.8 - - - 922.8 GROSS PROFIT

  34. Slide 34: Appendix 2: Segment Note

    APPENDIX 2: SEGMENT NOTE For personal use only FY22 FY21 SALES (NZ #039;000) Rip Curl Kathmandu Oboz Corporate Total Rip Curl Kathmandu Oboz Corporate Total SALES per segment note 536,830 381,628 61,344 - 979,802 490,439 357,363 74,990 - 922,792 SALES (Underlying) 536,830 381,628 61,344 - 979,802 490,4

  35. Slide 35: Appendix 3: Balance Sheet

    APPENDIX 3: BALANCE SHEET For personal use only Balance Sheet (NZ $m) Jul 22 Jan 22 Jul 21 Inventories 295.5 249.6 216.5 Property, plant and equipment 79.2 79.3 79.3 Right of Use Asset (IFRS 16) 250.4 252.3 242.7 Intangible assets 719.3 699.2 682.0 Other assets 137.3 106.5 98.2 Total assets (excl. c

  36. Slide 36: Important Notice and Disclosure

    IMPORTANT NOTICE AND DISCLOSURE For personal use only 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

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