Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu Holdings — Investor Day (November 2021)
79 slides from Kmd Brands's investor day presentation, Nov 9, 2021
Slide 1: Kathmandu Holdings Q1 earnings impacted by COVID lockdowns
KATHMANDU HOLDINGS LIMITED ASX / NZX / MEDIA ANNOUNCEMENT 9 November 2021 (All amounts in NZ$ unless otherwise stated) For personal use only Kathmandu Holdings Q1 earnings impacted by COVID lockdowns Kathmandu Holdings Limited (NZX / ASX: KMD) (the Group) today provides the following trading update
Slide 2: Investor Day 9 November 2021
For personal use only INVESTOR DAY 9 NOVEMBER 2021
Slide 3: Chairman David Kirk
For personal use only Chairman David Kirk 2 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 4: Agenda
Agenda For personal use only Time Topic Presenters 9.00am Welcome David Kirk 9.05am Group strategy Michael Daly and Chris Kinraid 9.20am Rip Curl Brooke Farris 9.35am Oboz Amy Beck 9.50am Kathmandu Reuben Casey, Robert Fry and Eva Barrett 10.40am Q&A 11.00am Close 3 | KATHMANDU HOLDINGS INVESTOR DAY
Slide 5: Today's Presenters
Today’s Presenters Michael Daly: Group CEO and Managing Director Reuben Casey: Kathmandu CEO Michael was the CEO for Rip Curl from early 2013 with a Reuben was appointed Kathmandu brand CEO in October 2019 For personal use only relentless focus on brand, product and the crew contributing to and has
Slide 6: Owner of leading global outdoor active brands
Owner of leading global outdoor active brands For personal use only Loyal, active Technical Iconic brands Leader in ESG Diversified consumers products • Rip Curl: top 3 global • NPS2 above 70 • R&D driving innovation • Early B-Corp adopter • Geography surf brand • Sustainable materials • Largest syn
Slide 7: Group Strategy
For personal use only Group Strategy Michael Daly Group CEO Chris Kinraid Group CFO 6 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 8: Our Group journey
Our Group journey For personal use only • We aspire to be a leading owner of global brands appealing to an active, outdoor consumer • Now diversified by geography, channels to market, seasonality and products • Our key brand attributes are: • Inspiring people to live an active outdoor life • Global
Slide 9: Group strategy
Group strategy For personal use only Build Global Elevate Lead in Leverage Brands Digital ESG Operational Excellence Expand global footprint Invest in Group digital Demonstrate leadership Deliver operational and invest in world class platforms to deliver a across environmental, excellence to all bra
Slide 10: Build global brands
Build global brands For personal use only ICONIC, INSPIRATIONAL, AND LEADING OUTDOOR BRAND IN ESTABLISHED AND DISTINCTIVE AUTHENTIC GLOBAL SURF BRAND AUSTRALASIA1 AMERICAN FOOTWEAR BRAND • Goal to be No.1 surf brand in Australasia, • Leverage Summit Club, with 2.1m loyal • Grow product range into ad
Slide 11: Brands with global reach and strong growth opportunities
Brands with global reach and strong growth opportunities For personal use only North America Europe Rip Current Group KMD Oboz Total Curl • Rip Curl target to double sales across all channels • Rip Curl targeting top 3 surf brand Owned stores 160 160 - 320 • Target top 3 surf brand • Strong growth p
Slide 12: Elevate digital
Elevate digital For personal use only 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 Online platform enhancement enhancement • New Group platform launched • Platform being rolled out
Slide 13: Lead in ESG
Lead in ESG For personal use only 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 a
Slide 14: ESG Timeline
ESG Timeline For personal use only Jan 2022 2H FY22 June 2022 July 2022 August 2022 September 2022 Modern Slavery Updated Group ESG First compliance Submission of Science B-Corp certification Integrated Annual reporting strategy and targets certificate for Based Targets for all brands Report Sustain
Slide 15: Leverage operational excellence
Leverage operational excellence For personal use only Group target: improve underlying EBITDA margin to 15% of sales in the medium-term Accelerate cross-brand revenue growth opportunities Ongoing realisation of margin and cost opportunities Supply Chain Property Product Core systems innovation inves
Slide 16: Trading update and outlook
Trading update and outlook Trading update • Same store sales (incl. online) for the 13 full weeks to 31 October 2021 were significantly impacted by ongoing Australasian COVID lockdowns: For personal use only • Rip Curl -9.4% overall, +1.6% adjusted for COVID lockdowns1 • Kathmandu -17.6% overall, +1
Slide 17: Brooke Farris, Rip Curl CEO
For personal use only Brooke Farris Rip Curl CEO 16 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 18: Our Vision
For personal use only OUR VISION “To be regarded as the ultimate surfing company in all that we do…” 17 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 19: Strategy
STRATEGY For personal use only Remaining true Fanatical An intense and authentic dedication to focus on to our surfing market exceeding the roots leadership in expectations of core products our customers through digital acceleration 18 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 20: Remaining true and authentic to our surfing roots
REMAINING TRUE AND AUTHENTIC TO OUR SURFING ROOTS 2. CONTENT For personal use only 1.TEAM & EVENTS 3. SUSTAINABILITY 19 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 21: For personal use only
For personal use only
Slide 22: Fanatical dedication to market leadership
FANATICAL DEDICATION TO MARKET LEADERSHIP 2. WOMENS For personal use only 1. INNOVATION 3. KIDS 4. 365 DAY RELEVANCE 21 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 23: Exceed the expectations of our customers through digital acceleration
EXCEED THE EXPECTATIONS OF OUR CUSTOMERS THROUGH DIGITAL ACCELERATION For personal use only 1. 3. UNIFIED 20-25% of COMMERCE CLUB RIP CURL = SALES 2. ECOMMERCE EXECUTION 22 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 24: Amy Beck, President Oboz
For personal use only Amy Beck President Oboz 23 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 25: For personal use only
For personal use only 24 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 26: Mission and Purpose
Mission Purpose What we do Why we do what we do For personal use only Oboz creates transformative footwear for Empower the people of the world to blaze adventurers seeking true experiences on any their own trail. and every trail. The trail is our right of way. It is the inspiration The Oboz Fit Prom
Slide 27: Brand growth
Brand growth For personal use only • Growth in core and new product categories • Wholesale doors increased 22% since FY20 • Online store launched FY21. Significant runway for future growth • Target USD $100m sales in the medium-term (3 to 5 years) • Brand momentum is strong with significant order bo
Slide 28: Brand
For personal use only Brand ▪ Elevate digital ▪ Create enhanced retail experiences ▪ Utilise insights to connect with new consumers and grow awareness ▪ Evolve service experience to connect further with staff and consumers 27 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 29: Elevate digital experience
Elevate digital experience For personal use only • Creating demand and engagement with pre- release pages and pre-sale capability • Launching eGift cards • Investing in video • Utilising partnership and collaborations to grow audience and conversion 28 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 30: Enhanced instore experiences
Enhanced instore experiences For personal use only • Branded environment: shelves, brand sign and story • New campaign activations: windows, signage, staff buttons • Fitting environment: fit bench, branded brannock device 29 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 31: Connecting...investing in digital engagement to grow awareness is working
Connecting…investing in digital engagement to grow awareness is working For personal use only • Impressions: +4 million (+4.2%) • Engagements: +18.2% • Total audience: +17.3% • Video views: +696.7% 30 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 32: Product evolution and expansion
For personal use only Product evolution and expansion ▪ Evolve and grow the core ▪ Build on successful franchises ▪ New products for new consumers 31 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 33: Product evolution and expansion: revitalising the core
Product evolution and expansion Revitalising and modernising the core, building on successful franchises For personal use only • Relaunch of biggest franchise Sawtooth X supporting strong order book growth 32 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 34: Product evolution and expansion: reaching new consumers
Product evolution and expansion Reaching new consumers For personal use only Ongoing pipeline of new styles to drive growth in consumers and closet share 33 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 35: Reuben Casey, Kathmandu CEO
For personal use only Reuben Casey Kathmandu CEO
Slide 36: Brand leadership team
Brand leadership team For personal use only 35 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 37: Our kaupapa
Our kaupapa For personal use only Improve the wellbeing of the world through the outdoors Kia whanake ake i te hauora o te ao mā te taiao. 36 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 38: Our vision
Our vision Be the world’s For personal use only most loved outdoor brand. It’s a truly global vision. To strive for something this ambitious, we’ll need the most courageous, joyful, open people along for the ride. We’ll need to design our little hearts out, we’ll need to challenge convention and be
Slide 39: Kathmanduers values
Courageous Māia We’re We give it a go Kathmanduers, We embrace the unknown For personal use only We do the right thing even when it’s hard we are; Joyful Manahau We do what we love and love what we do Courageous, joyful, open We don’t take ourselves too seriously We enjoy each others company and hav
Slide 40: Strong long-term growth runway in International
Strong long-term growth runway in International ANZ: For personal use only • $120m growth getting back to pre-COVID Growth runway (3-5 years) • $30m growth through year round relevance, NZD $m product, brand investment, network optimisation • Digital to grow to $100m+, c. 20-25% of sales 100.0 150.0
Slide 41: Building the world's most loved outdoor brand
Building the world’s most loved outdoor brand BRAND – meaningful and differentiated PRODUCT – desirable, differentiated For personal use only 1. Tone of Voice: Joyful, carefree, ‘out there’ vs 1. Products of desire relevant to target consumer serious/competitive/preaching 2. Exceed performance expec
Slide 42: Key messages
Key messages • Reset Brand purpose, vision, values For personal use only • Building a meaningful differentiated brand • International provides long-term growth runway • ANZ short-medium term growth through post-COVID recovery, network optimisation • Digital business growing strongly • Strong team wi
Slide 43: Our brand transformation journey
Our brand transformation For personal use only journey Eva Barrett Chief Customer Officer
Slide 44: The business opportunity
The business opportunity For personal use only The outdoor category continues to explode with more and more consumers wanting to be part of outdoor culture. Worth over $170BN globally the outdoor adventure economy is highly sought after with consumers wanting to try new experiences to stay fit and h
Slide 45: Our relationship with the outdoors has evolved
Our relationship For personal use only with the outdoors has evolved A place to challenge A place to restore body oneself and mind Overcoming/conquering Reciprocal respectful nature & lands relationship A way to stand out A way to belong Explorers, hobbyists & Anyone, everyone extreme sports 44 | KA
Slide 46: Walking and enjoying nature during lockdown
Walking and enjoying nature during lockdown initially seemed like a means to an end. For personal use only People rediscovered the balance of mental and physical wellbeing that can come from exploring the outdoors. It’s changed their Participation rates are rising And will change the future of attit
Slide 47: How the brand makes you feel
For personal use only HOW THE BRAND MAKES YOU FEEL WHY THE BRAND EXISTS OUR SPIRIT AND ATTITUDE Improve the wellbeing We’re out there! of the world through We want YOU to feel the the outdoors EMOTIONAL benefits of nature, the BENEFIT fun, the joy, the fact that nature changes your brains for the be
Slide 48: Consumer Growth Strategy
Consumer Growth Strategy Attract new consumers into the brand whilst retaining relevance with our core Current Growth For personal use only • Millennials 25-34 • 40+ • The biggest opportunity in the outdoor • Out there to challenge & ‘do’ category by spend, size and participation • A way to standout
Slide 49: For personal use only
For personal use only 48 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 50: For personal use only
For personal use only 49 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 51: We are the strongest brand in AU and NZ
We are the strongest brand in AU and NZ outperforming our closest competitors. We also dominate consumers’ predisposition to purchase in Kantars brand equity measure (brand power) For personal use only 18-59 Total Consideration Currently Buy Preference Awareness (t2b) Purchase (t2b) Most Often (Bran
Slide 52: Brought to life through the 'We're out there' brand platform
Brought to life through the ‘We’re out there’ brand platform and our brand relaunch in May • Integrated campaign across TV, video on demand, digital channels, social, radio, outdoor, PR launched May 6th For personal use only • Research showed the campaign reinforced our strategy to inspire people to
Slide 53: Significant brand KPI uplifts among campaign recognisers
We have seen significant brand KPI uplifts among campaign recognisers (particularly in AU), has moved the dial on ‘inspiration’ and ‘wellbeing’ Brand KPI Impact | AU and NZ | July 2021 18-59 For personal use only Campaign Uplift 19% 32% 25% 20% 22% 9% 76% 57% 57% 54% 55% 53% 44% 34% 32% Not seen Cam
Slide 54: Summer..We're Out There and Kathmandu X Mulga
We launched Summer..We’re Out There and our first collab Kathmandu X Mulga. Setting the scene for growth by enabling us to become an all year round brand rather than just for winter For personal use only 53 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 55: For personal use only
For personal use only 54 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 56: Unified Commerce
For personal use only Unified Commerce
Slide 57: A complete new website experience
A complete new website experience For personal use only 56 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 58: Refreshed Design
Refreshed Design – 360 products videos, improved checkout experience, TruRating NPS For personal use only 57 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 59: A complete overhaul of our photography
A complete overhaul of our photography, increasing sales and reducing returns For personal use only 58 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 60: Driving customer lifetime value through loyalty and personalisation
Driving customer lifetime value through loyalty and personalisation Q2 FY22 Q3 FY22 Q4 FY22 For personal use only Loyalty Value Proposition Phase 1: Development of Phase 2: Rollout new loyalty value proposition [Relaunch Loyalty Program] new loyalty value proposition Loyalty Engine Phase 1: Delivery
Slide 61: Three key take outs
Three key take outs For personal use only Digital Drive Brand Heat Transformation in Growth Culture Drive consideration Marketing Grow through with a younger Become a modern continuously demographic with a marketing attracting new clear differentiated organisation with a consumers into the brand pos
Slide 62: Product, Robert Fry
Product For personal use only Robert Fry GM of Product
Slide 63: The imperative
The imperative For personal use only • Design beautiful, desirable, differentiated product that has intrinsic value • Exceed product performance expectations • Lead the industry in ground-breaking sustainability innovations • Do all of this while maintaining competitive price points 62 | KATHMANDU H
Slide 64: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Not long ago, this is how we showed up in market. Approachable, but dismissable. 63 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 65: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Autumn/Winter 22 will see a critical evolution in style and story. Relevant, desirable, and just as Outdoor as we’ve always been. 64 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 66: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Autumn/Winter 22 will see a critical evolution in style and story. Relevant, desirable, and just as Outdoor as we’ve always been. 65 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 67: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Autumn/Winter 22 will see a critical evolution in style and story. Relevant, desirable, and just as Outdoor as we’ve always been. 66 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 68: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Autumn/Winter 22 will see a critical evolution in style and story. Relevant, desirable, and just as Outdoor as we’ve always been. 67 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 69: Design beautiful, desirable, differentiated product
Design beautiful, desirable, differentiated product that that has intrinsic value For personal use only Autumn/Winter 22 will see a critical evolution in style and story. Relevant, desirable, and just as Outdoor as we’ve always been. 68 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 70: Exceed product performance expectations
Exceed product performance expectations For personal use only Up until recently, performance took the shape of undifferentiated design. Requiring the performance story to support the product desirability – limiting sales and new customer acquisition 69 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 71: Exceed product performance expectations
Exceed product performance expectations For personal use only What if class leading performance also looked fantastic? 70 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 72: Exceed product performance expectations
Exceed product performance expectations For personal use only Or new forms of performance and weather protection took the shape of stylish, versatile sun-protection? 71 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 73: Lead the industry with ground-breaking sustainability innovations
Lead the industry with ground-breaking sustainability innovations For personal use only In Winter 22 Kathmandu will launch the NXT-Level Bio Down capsule. The world’s first, biodegradable down jacket. 72 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 74: Sustainability is more than material innovation
Lead the industry with ground-breaking sustainability innovations Sustainability is more than material innovation For personal use only Kathmandu is a key collaborator with every industry-leading ESG organisation. Our team is introducing collaborative new, solution-driven innovations that help prote
Slide 75: Do all of this while maintaining competitive price points
Do all of this while maintaining competitive price points For personal use only The details matter. We elevate the customer experience, and increase the value of the product and the brand, through caring about the touch points – with nominal cost impact. 74 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 76: Become a global brand
Become a global brand For personal use only From here To here 75 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 77: Summary
Summary For personal use only Group priorities: • Build a truly global house of brands • ESG is at the heart of our business • Brand authenticity • New team in place • Expanding product range • Innovation and market leadership • Reinvigorated brand and products • Expanding distribution • Digital acc
Slide 78: Questions
For personal use only Questions 77 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Slide 79: Important notice and disclosure
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 For personal use only statements of the Company, and accompanying information released to the market. As such, it should