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23 March 2021 Kathmandu RIP CURL Obōz ( All amounts in NZ $ unless otherwise stated ) • • • • Strong Rip Curl performance underpinned 1H Group result Rip Curl achieved strong sales and profits , despite COVID - 19 impacts in key global markets , validating the Group's diversification strategy Kathmandu impacted by COVID - 19 related travel restrictions and store closures Oboz sales growth and strong forward order book , benefiting from successful product innovation strategy and diversification of customer base Step change in Group online penetration reflecting improved digital capabilities and changing consumer preferences Robust balance sheet with low net debt , and clean inventory position • Dividend resumes , with NZ 2.0 cents per share interim dividend Kathmandu Holdings Limited ( ASX / NZX : KMD ) is pleased to announce its results for the six months ended 31 January 2021 ( 1H FY21 ) . 1H FY21 key highlights ( vs 1H FY20 ) : • • Sales up 12.9 % to $ 410.7 million , including a full six month contribution from Rip Curl Step change in Group online penetration , with online representing 12.7 % of direct to consumer ( DTC ) sales ( 1H FY20 : 8.8 % ) Underlying EBITDA up 19.0 % to $ 48.2 million ( excluding the impact of IFRS 16 and one - off transaction and abnormal costs ) Statutory NPAT of $ 22.3 million Underlying NPAT up 32.8 % to $ 23.1 million ( excluding the impact of IFRS 16 and one - off transaction and abnormal costs ) Robust balance sheet , with $ 10.1 million net debt , reflecting working capital management strategies Resumption of dividends , with NZ 2.0 cents per share interim dividend declared ( fully franked for Australian shareholders , and not imputed for New Zealand shareholders ) Commenting on the 1H FY21 results , Group CEO Xavier Simonet said : “ Despite operating in challenging conditions over the first half due to the substantial impacts from COVID - 19 , Rip Curl delivered an outstanding first half result , validating the Group's diversification strategy . " " Benefiting from increased participation in surfing in Australia , Europe and the USA , Rip Curl achieved strong sales and profits despite COVID - 19 trading restrictions , reflecting the brand's technical product focus and strong consumer engagement . Pleasingly , Rip Curl's wholesale order book is back above pre - COVID - 19 levels . " “ Kathmandu was particularly impacted by COVID - 19 related travel restrictions , with reduced demand for insulation and rainwear resulting from a lack of international travellers to the Northern Hemisphere . " " Over the first half , we implemented a rapid response to changes in consumer preference resulting from COVID - 19 . To respond to increased participation in local travel and adventure , our brands Kathmandu Holdings Ltd kathmanduholdings.com 1