Kmd Brands Limited · NZX:KMD
Kmd Brands — H1 2022 Earnings Presentation
35 slides from Kmd Brands's earnings presentation, Mar 23, 2022
Slide 1: 1H FY22 Results Presentation
For personal use only (Formerly Kathmandu Holdings Limited) 1H FY22 RESULTS PRESENTATION 23 MARCH 2022
Slide 2: Contents
CONTENTS For personal use only 1. INTRODUCING KMD BRANDS 3 2. FIRST HALF HIGHLIGHTS 7 3. GROUP FINANCIALS 11 4. RIP CURL 17 5. KATHMANDU 20 6. OBOZ 23 7. SECOND HALF FOCUS 25 8. APPENDICES 29 2 1H FY22 RESULTS PRESENTATION
Slide 3: Section 1: Introducing KMD Brands
For personal use only SECTION 1 INTRODUCING KMD BRANDS 3 1H FY22 RESULTS PRESENTATION
Slide 4: Our Purpose
OUR PURPOSE For personal use only Inspiring people to explore and love the outdoors. 4 1H FY22 RESULTS PRESENTATION
Slide 5: Our Vision
OUR VISION For personal use only To be the leading family of global outdoor brands - designed for purpose, driven by innovation, best for people and planet. 5 1H FY22 RESULTS PRESENTATION
Slide 6: Owner of Leading Global Outdoor Active Brands
OWNER OF LEADING As a portfolio, our brands provide all the GLOBAL OUTDOOR For personal use only fundamentals for strong long-term growth. ACTIVE BRANDS Technical and innovative products and practices; brands with global reach and diversification; capabilities across multiple geographies and channel
Slide 7: Section 2: First Half Highlights
For personal use only SECTION 2 FIRST HALF HIGHLIGHTS 7 1H FY22 RESULTS PRESENTATION
Slide 8: Our Strategy
OUR 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 Demonstrate leadership across invest in world class brand and platforms to deliver a truly to all bran
Slide 9: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY For personal use only BUILD GLOBAL ELEVATE LEVERAGE OPERATIONAL LEAD IN BRANDS DIGITAL EXCELLENCE ESG New Loyalty Management System Group appointments made in HR and President of KMD Brands Europe Group ESG focus areas determined software in place across Rip Curl Commercia
Slide 10: Q2 Rebound as Stores Reopen
Q2 REBOUND AS STORES REOPEN For personal use only Kathmandu COVID store closures Same store sales Rip Curl COVID store closures Same store sales 130% Open Closed 20.0% (incl. online) 130% Open Closed (incl. online) 20.0% 15.0% 99% 99% 100% 15.0% 80% 97% 15.4% 80% 98% 98% 10.0% 80% 10.0% 66% 64% 67%
Slide 11: Section 3: Group Financials
For personal use only SECTION 3 GROUP FINANCIALS 11 1H FY22 RESULTS PRESENTATION
Slide 12: Profit & Loss
PROFIT & LOSS For personal use only P&L reflects the short-term impact of COVID. KATHMANDU GROUP Statutory Underlying SALES: Positive Q2 rebound as Kathmandu and Rip Curl stores in Australasia reopened. NZD $m *2 1H FY22 1H FY22 1H FY21 Var % Oboz heavily impacted by temporary closure of Vietnam fac
Slide 13: Sales
SALES For personal use only Total Group Reported Sales ($m) Online Sales ($m) 410.7 407.3 60.0 Online sales % of DTC sales 17.4% 20.0% 363.7 50.0 12.8% 15.0% 40.0 48.1 Q2 8.8% 10.0% Q2 6.1% 7.1% rebound 30.0 36.5 229.0 rebound 202.9 30.3 5.0% 20.0 24.8 21.6 0.0% 10.0 Q1 Q1 COVID 0.0 -5.0% COVID impa
Slide 14: EBITDA
EBITDA For personal use only Lockdowns in Australasia were more severe than last year, and less government support and rent assistance was received, impacting YOY EBITDA by c. $35m.. Q2 EBITDA above last year reflecting rebound in sales. 14 1H FY22 RESULTS PRESENTATION
Slide 15: Strong Balance Sheet
STRONG BALANCE SHEET For personal use only Key Balance Sheet items and ratios*1 The strong balance sheet position allows the Group to support organic growth NZD $m Jan 22 Jul 21 Jan 21 and M&A opportunities. Net cash / (Net interest bearing liabilities) (48.6) 37.0 (10.1) DEBT: Significant funding h
Slide 16: Interim Dividend Up 50%
INTERIM DIVIDEND UP 50% For personal use only Cash Flow (NZD $m) 1H FY22 1H FY21 Dividends declared (NZD $m) NPAT (5.5) 22.3 36.2 35.5 Change in working capital (64.9) (17.6) 32.9 Non-cash items 20.3 6.0 21.3 Adjusted operating cash flow *1 (50.1) 10.7 27.2 24.8 21.3 14.2 Key Line Items: 1H FY22 1H
Slide 17: Section 4: Rip Curl
For personal use only SECTION 4 RIP CURL 17 1H FY22 RESULTS PRESENTATION
Slide 18: Rip Curl Profit & Loss
RIP CURL PROFIT & LOSS For personal use only RIP CURL Pre IFRS 16 Total sales: +2.7% growth, with strong sales growth in online and wholesale NZD $m 1H FY22 1H FY21 Var % channels. Europe and Hawaii in particular achieved strong sales growth. SALES 257.8 251.1 2.7% North America was impacted by wets
Slide 19: Investing in Brand, Customer Connection and Sustainable Solutions
INVESTING IN BRAND, CUSTOMER CONNECTION AND SUSTAINABLE SOLUTIONS For personal use only RIP CURL WSL FINALS INTERACTIVE BIKINI FIT GUIDE SALTWATER CULTURE The most watched day in the history of professional Shot on the women behind the brand. Made with Sustainability in mind. surfing. The Interactiv
Slide 20: Section 5: Kathmandu
For personal use only SECTION 5 KATHMANDU 20 1H FY22 RESULTS PRESENTATION
Slide 21: Kathmandu Profit & Loss
KATHMANDU PROFIT & LOSS For personal use only KATHMANDU Pre IFRS 16 Total sales by market (at constant exchange rates): NZD $m 1H FY22 1H FY21 Var % Australia +4.3%, with 5,220 lost trading days in 1H FY22 vs 2,306 in 1H FY21. SALES 128.3 129.3 (0.8%) New Zealand -4.0%, with 1,961 lost trading days
Slide 22: Kathmandu: Strong Brand & Customer Fundamentals
KATHMANDU For personal use only STRONG BRAND & CUSTOMER FUNDAMENTALS: • Kathmandu dominates the category in AU and NZ; leading the market for top-of-mind awareness, consideration, brand desire and digital visitation.1 • NPS across ANZ of 76 across all customer groups, 2 million active Summit Club me
Slide 23: Section 6: Oboz
For personal use only SECTION 6 OBOZ 23 1H FY22 RESULTS PRESENTATION
Slide 24: Oboz Profit & Loss
OBOZ PROFIT & LOSS For personal use only OBOZ Pre IFRS 16 1H FY22 supply challenges were unprecedented and transitory: NZD $m 1H FY22 1H FY21 Var % Wholesale and online sales heavily impacted by three-month COVID closure of Vietnam factories and compounded by international freight delays. SALES 21.2
Slide 25: Section 7: Second Half Focus
For personal use only SECTION 7 SECOND HALF FOCUS 25 1H FY22 RESULTS PRESENTATION
Slide 26: Key 2H FY22 Strategic Priorities
KEY 2H FY22 STRATEGIC PRIORITIES For personal use only BUILD GLOBAL ELEVATE LEVERAGE OPERATIONAL LEAD IN BRANDS DIGITAL EXCELLENCE ESG Continue the global rollout of new Group ESG strategy finalised for Oct Group-wide loyalty management, Merging of Canada and UK 22 communication. customer data, and
Slide 27: Outlook
OUTLOOK For personal use only BRANDS UPDATE Rip Curl wholesale order books remain strongly above pre-COVID levels. Kathmandu enters the traditionally strong winter season well prepared. Oboz Vietnam based factories have reopened following COVID shutdowns and are ramping up production. 2H OUTLOOK Sec
Slide 28: Questions
For personal use only QUESTIONS 28 1H FY22 RESULTS PRESENTATION
Slide 29: Appendices
For personal use only SECTION 8 APPENDICES 29 1H FY22 RESULTS PRESENTATION
Slide 30: Appendix 1: Lead in ESG
APPENDIX 1: LEAD IN ESG For personal use only OUR ESG COMMITMENT: To transform business culture through purpose-driven innovation and collaboration. We adopt a mindset which acknowledges the interdependence of our business with the wider communities we operate within and impact. THREE KEY PILLARS OF
Slide 31: Appendix 2: Brands with Global Reach
APPENDIX 2: BRANDS WITH GLOBAL REACH For personal use only North America RC KMD Oboz Total Europe RC KMD Oboz Total Total Group RC KMD Oboz Total Owned stores 31 - - 31 Owned stores 20 - - 20 Owned stores 162 159 - 321 Licensed stores 15 - - 15 Licensed stores 18 - - 18 Licensed stores 223 - - 223 O
Slide 32: Appendix 3: Statutory to Underlying Profit & Loss
APPENDIX 3: STATUTORY TO UNDERLYING PROFIT & LOSS For personal use only GROUP 1H FY22 1H FY21 IFRS 16 Transaction Other IFRS 16 Transaction Other NZD $m Statutory Leases *1 Costs Abnormals Underlying Statutory Leases *1 Costs *2 Abnormals Underlying SALES 407.3 - - - 407.3 410.7 - - - 410.7 GROSS PR
Slide 33: Appendix 4: Segment Note
APPENDIX 4: SEGMENT NOTE For personal use only 1H FY22 1H FY21 SALES (NZD $'000) Rip Curl Kathmandu Oboz Corporate Total Rip Curl Kathmandu Oboz Corporate Total SALES per segment note 257,834 128,277 21,193 - 407,304 251,080 129,265 30,368 - 410,713 SALES (Underlying) 257,834 128,277 21,193 - 407,30
Slide 34: Appendix 5: Balance Sheet
APPENDIX 5: BALANCE SHEET For personal use only Balance Sheet (NZD $m) Jan 22 Jul 21 Jan 21 Inventories 249.6 216.5 229.6 Property, plant and equipment 79.3 79.3 82.6 Right of Use Asset (IFRS 16) 252.3 242.7 238.2 Intangible assets 699.2 688.6 681.2 Other assets 106.5 95.5 71.2 Total assets (excl. c
Slide 35: 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