Kmd Brands Limited · NZX:KMD

Kmd Brands — FY2018 Earnings Presentation

33 slides from Kmd Brands's earnings presentation, Sep 18, 2018

  1. Slide 1: FY18 Results Presentation

    ae Personal use only Oboz gg org, FO 0 T*W.E-A-R a one Kathmandu’ . FY18 Results = Presentations... <2 Mp September 2018

  2. Slide 2: For personal use only

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  3. Slide 3: Contents

    Contents Strategy update Result overview 1. 2 3. Key line items 4. Segment results 5. 6 7 A Cash Flow, Balance Sheet, Dividend . Summary . Questions . Appendices

  4. Slide 4: 1. Strategy update

    1. Strategy update Kathenondu’ Oboz

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  8. Slide 8: Online sales

    For personal use only » » » » » » Online sales % of KMD total sales 8

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  11. Slide 11: Australasian industry leadership in sustainability

    Our goal: Australasian industry leadership in sustainability For more information Kathmandu's 2018 Sustainability Report released mid-October ve sustdinabil highlights, At spire issue isn't department, doing thingsyHere afe sore our highlights from. ites ' Fair Labor Association certified oshay fy 2

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  14. Slide 14: 3. Key line items

    3. Key line items rach y Oboz

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  16. Slide 16: Same Store Sales result

    TaN oz 3. Same Store Sales result Kath he Obsz FOOTWEAR Australia New Zealand 6.9% 6.9% 7:5% Pec ie 3.6% [| |__| a -0.1% _4 19 -0-1% = 4.4% at constant rates » Same store sales: +6.4% actual exchange rates -2.7% -2.4% +4.4% constant exchange rates: » Stores +2.0% mFY14 mFYIS mFY16 mFYI7 wFYI8 7, » O

  17. Slide 17: Gross Margin

    3. Gross Margin Kate ver Oboz NZ GROUP 66.3% 6 63.4% 64.1% 64.1% 5.9% 55.1% 62.6% 62.0% 05-4% 60.1% 60.5% 61.5% | Tc 7 TLD mFY14 mFYIS mFY16 mFYI7 mFY18 » Gross margin long-term target range 61% to 63% remains unchanged (Australasia) » Gross margin improvement from increased full price sell through,

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  19. Slide 19: Earnings summary

    3. Earnings summary Las oz Kathmandu’ Oboz EBITDA $89 +26.8% 89.8 EBIT"! $74 +30.9% 74.5 74.6 FY15 FY16 FY17 FY18 FY14—FY15 FY16 FY17 FY18 EBITDA % EBIT % 19.0% 11.5% 15.2% 15.9% 18.1% ) 16.4% 8.1% 12.0% 12.8% 15.0% ) 1. EBIT YOY exchange rate translation impact in FY18: +$1.7m (FY17 -$0.6m) NPAT $5

  20. Slide 20: 4. Segment results

    a USE ON For personal 4. Segment results

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  23. Slide 23: Oboz

    4. Oboz Las oz Kathmandu’ Oboz » » » Earn-out EBITDA target USD $7.1m to December 2018 Oboz contribution to FY18 Group EBIT $0.6m: $2.6m Oboz EBIT from April to July 2018 less $2.0m transaction costs FY18 pro-forma: » sales growth c. 28% » gross marginc. 40% » EBIT margin improvement c. 200 bps / 2.

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  25. Slide 25: 5. Cash Flow, Balance Sheet, Dividend

    5. Cash Flow, Balance Sheet, Dividend Kathenondu’ Oboz fe |

  26. Slide 26: Cash Flow

    5. Cash Flow Kate ver Oboz FOOTWEAR Operating cash flow $75.6m: Cash Flow (NZD $1 FY18 FY17 » Record operating cash flow generated through NPAT 50.5 38.0 improved profitability Change in working capital 8.7 12.9 » Change in working capital includes inventory - i build related to Kathmandu internatio

  27. Slide 27: Capital expenditure

    For personal use only » » » New Stores Relocations and Refurbishments Total Stores 24.2 23.2 20.0 14.8 13.8 16.7 13.3 10.2 9.5 8.0 27

  28. Slide 28: Balance Sheet

    5. Balance Sheet Ls. Oboz Kathmandu’ «oot == Net Debt (NZD $m) Balance Sheet (NZD $m) FY18 FY17 69.3 Inventories 11.9 89.2 55.35 Property, plant and equipment 63.5 61.0 36.8 31.4 Intangible assets 390.3 279.0 L | Other assets. 40.8 6.3 6.9 = Total assets (excl. cash) 606.5 435.5 FY14 FY15 FY16 FY17

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  31. Slide 31: Summary

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  32. Slide 32: Questions

    Sisters ° lu TaN Kathmand Questions 7

  33. Slide 33: EBIT reconciliation by segment

    FY18 (#039;000) Australia NG Nertie Zealand America EBIT per financial statements (NZD) 49,057 29,029 2,459 (715) (5,220) 74,610 Abnormals*' (NZD) 1,387 578 - - 1,990 3,955 Internal charges not trading related*? (NZD) 1,169 (1,169) - - - - EBIT (trading result) (NZD) 51,613 28,438 2,459 (715) (3,230) 7

KMD Brands — FY2018 Earnings Presentation on 6ix