Slides
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ANNUAL MEETING 2025 19 NOVEMBER 2025
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2 David Kirk Chairman Brent Scrimshaw Group CEO and Managing Director Philip Bowman Non-Executive Director Andrea Martens Non-Executive Director Abby Foote Non-Executive Director Zion Armstrong Non-Executive Director A N N U A L M E E T I N G 2 0 2 5 OUR BOARD Standing (L-R): Seated (L-R):
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3 6 10 36 37 38 39 TODAY’S AGENDA ITEM 1: CHAIRPERSON’S ADDRESS ITEM 2: GROUP CEO’S ADDRESS ITEM 3: RESOLUTIONS • RE-ELECTION OF DIRECTOR • AUDITOR REMUNERATION ITEM 4: OTHER BUSINESS A N N U A L M E E T I N G 2 0 2 5
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4 To vote, you will need to click “Get a Voting Card” within the online meeting platform shown here Please use the "Ask a Question" function, and your question will be conveyed to the meeting VOTING AND REGISTRATION A N N U A L M E E T I N G 2 0 2 5
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5 FY25 ANNUAL INTEGRATED REPORT A N N U A L M E E T I N G 2 0 2 5
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CHAIRPERSON'S ADDRESS 6 ITEM 1 A N N U A L M E E T I N G 2 0 2 5
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7 CHAIRPERSON’S ADDRESS A N N U A L M E E T I N G 2 0 2 5
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KMD BRANDS INVESTMENT THESIS 8 A N N U A L M E E T I N G 2 0 2 5 Strong brands with exciting medium-term growth opportunities Geographic, channel and seasonal diversity to de-risk the portfolio Immediate actions to refocus profitability and build agility into our fixed cost base Active management of our balance sheet reducing debt exposure With significant executive leadership changes to add new capabilities for success We believe our business is undervalued today given the opportunity within our portfolio
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9 A N N U A L M E E T I N G 2 0 2 5
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GROUP CEO’S ADDRESS 10 ITEM 2 A N N U A L M E E T I N G 2 0 2 5
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FINANCIAL SUMMARY 11 1. Prior period restatement: following an accounting system change at the Group’s wetsuit manufacturer, $5.0m of FY24 production labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s FY24 EBITDA or net profit. 2. Statutory results include the impact of IFRS 16 leases. The impacts of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships, impairment and onerous contracts have been excluded from Underlying results. Refer to Appendix 1 of the FY25 Results Presentation for a reconciliation of Statutory to Underlying results. Sales $989.0m +1.0% YOY FY24 $979.4m Gross Margin 1 56.5% -1.9% of sales FY24 58.4% Underlying EBITDA 2 $17.7m Net working capital -64.7% YOY FY24 $50.0m $157.7m $40.6m lower YOY Jul 24 $198.3m Net debt $52.8m c. $235m headroom Jul 24 $59.7m Underlying NPAT 2 -$28.3m Statutory NPAT -$93.6m A N N U A L M E E T I N G 2 0 2 5
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OPERATIONAL HIGHLIGHTS 12 PRODUCT INNOVATION • Launched the new Search GPS3 Surf and Tide watch, and the new Search GPS iOS app. • ISPO Award for the Mirage 3DP boardshort, engineered using 3D printing technology. • Introduced revised product design DNA and brand standards, ensuring consistency across product and marketing. • ISPO Awards for both the Feather Flight carry-on luggage and Seeker shorts. • Collaborated with creative studio and taste- maker Blackbird Spyplane to release a limited-edition version of the iconic Sawtooth shoe, which sold out quickly and opened the door to new consumers and new distribution. INTEGRATED MARKETPLACE • Opened first Women’s store in Australia in Bondi Beach next to an existing multi gender store. • Recently elevated the existing store to a Men’s & Kids concept. • Combined Rip Curl now own an elevated precinct overlooking one of the most famous beaches in the world. • Upgraded the online trading platform with a significant improvement to the consumer journey. • Completed ‘new flagship concept store’ development, prototype creation and supplier selection. First store opened in October 25. • Grew online sales strongly during key online promotional periods, reinforcing the growth opportunity for the brand. SUSTAINABLE INNOVATION • Rip Curl began using OCENA© rubber in its wetsuit range in FY25, a bio-based alternative to neoprene. • Achieved the FY25 goal of sourcing 100% of wool from Responsible Wool Standard certified sources. • Launched a new footwear take-back initiative with GotSneakers. Customers can return Oboz warranty footwear – and up to five additional pairs of outdoor or athletic shoes from any brand – for reuse or recycling. A N N U A L M E E T I N G 2 0 2 5
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‘NEXT LEVEL’ TRANSFORMATION 13 • A brand-led offence enabled by the right level of central support and capability. • A proactive plan that reboots growth with the right profitability. • An immediate right-sizing of our cost base, with ambitions for ongoing cost efficiencies. • Key financial guardrails embedded in strategic ambitions. A N N U A L M E E T I N G 2 0 2 5
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WE HAVE ALREADY STARTED TO EXECUTE AGAINST THE ‘NEXT LEVEL’ STRATEGY 14 A N N U A L M E E T I N G 2 0 2 5 • Connected consumer experiences • Authentic products • Iconic franchises • Distinctive design and style • Accelerated go-to-market • Commercially oriented A brand and product-led offence Enabled through intelligent decisions and processes • Brand decisions are informed and supported by data-driven shared services • Efficient, scalable processes across the portfolio, incl. supply chain excellence • Technology-enabled system integration That delivers sustainable profitability • Cost justified by growth guardrails • On-going focus on simplification • Portfolio-wide capital allocation ROI prioritised • Optimised to create shareholder value 2 3 1
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KMD BRANDS STRATEGY HOUSE FY26 - FY28 15 A N N U A L M E E T I N G 2 0 2 5
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WE HAVE SET CLEAR STRATEGIC INITIATIVES THAT GUIDE OUR OBSESSIVE FOCUS ON EXECUTION 16 Growth Enabling Financial Guardrails / Profitability-driven Working Capital Focus Data-driven Decision Intelligence Balance Sheet Deleverage A N N U A L M E E T I N G 2 0 2 5
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Accelerated product strategy Integrated marketplace and digital execution Brand and product-led storytelling Store segmentation International strategy reset Reset brand on youthful energy Global product simplification Growth beyond core US profitability focus Digital uplift 17 More with the core Accelerate ‘fast’ category New all-terrain opportunities Channel diversity Digital uplift WE HAVE SET CLEAR STRATEGIC INITIATIVES THAT GUIDE OUR OBSESSIVE FOCUS ON EXECUTION A N N U A L M E E T I N G 2 0 2 5
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1 Cost reset across the portfolio to mitigate cost pressure, whilst self-funding strategic growth investments COST RESET ~ $25M GROWTH INVESTMENT ~ $15M 2 Focus on both short and medium-term growth 3 Maintain flexibility in our investment allocation, with a stage-gated approach based on growth hurdle rates 4 Baseline cost inflation held at less than 3% p.a. despite retail leases and store wage award increases COST OF DOING BUSINESS RESET OUR COST BASE OVER NEXT 12 MONTHS TO FUEL GROWTH AND IMPROVE SHAREHOLDER RETURNS 18 A N N U A L M E E T I N G 2 0 2 5
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Ashley Reade CEO, Rip Curl Carla Webb-Sear Group CFO Frances Blundell Chief Legal & ESG Officer Brent Scrimshaw Group CEO Lachlan Farran Chief Commercial Officer Michael Ross Chief Information Officer Amy Beck President, Oboz Footwear Megan Welch CEO, Kathmandu Jonas Golze Chief Operating Officer 34 A N N U A L M E E T I N G 2 0 2 5 REFRESHED EXECUTIVE TEAM, ENHANCED CAPABILITIES • Global Perspective • Consumer Obsessed • Distinctive Product Experience • Integrated Marketplace Management • Digitally Native • Commercial Acumen • Operational Discipline • Inspiring Team Leadership
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35 TOTAL SALES CHANGE YOY1 (unaudited) Q1 FY26 Aug 25 to Oct 25 Rip Curl +6.6% Kathmandu +13.9% Oboz -1.3% Group +7.9% FIRST QUARTER FY26 TRADING UPDATE A N N U A L M E E T I N G 2 0 2 5 TRADING UPDATE • Direct-to-consumer (“DTC”) same store sales (incl. online)2 for the 14 full weeks ended 2 November 2025: • Rip Curl +3.0% YOY • Kathmandu +14.0% YOY • Group gross margin for Q1 FY26 is 55.8%, approximately -120 bps lower YOY due to continued focus by all brands to sell through aged inventory and enhance the balance sheet position. Q1 FY26 gross margin is above 2H FY25 gross margin. • October 2025 inventory balance is $8m lower YOY. • The Group is on track to deliver $25m of annualised savings in FY26, re-setting the cost base to mitigate cost pressure and to self-fund the ‘Next Level’ strategic growth plan. OUTLOOK • Sales results for the first quarter of FY26 are encouraging, however the Group’s first half results are dependent on the key Black Friday and Christmas retail trading periods to come. • Forward wholesale order books remain stable and slightly above last year.1. Total sales for Q1 FY26 benefit by approximately +2% from the year-on-year movement in exchange rates used to convert Rip Curl AUD and Oboz USD results to the Group NZD reporting currency. 2. At constant exchange rates.
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RESOLUTIONS 36 ITEM 3 A N N U A L M E E T I N G 2 0 2 5
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37 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Andrea Martens be re-elected as a Director of the Company.” Proxies: In respect of this item of business, the following proxies have been received: The Board unanimously supports Resolution 1 and recommends that shareholders vote in favour. RESOLUTION 1 A N N U A L M E E T I N G 2 0 2 5 Resolution 1 In favour 401,999,084 Against 19,186,122 Open 3,990,543
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38 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That the Board be authorised to fix the remuneration of the Company’s auditor for the ensuing year.” Proxies: In respect of this item of business, the following proxies have been received: The Board unanimously supports Resolution 2 and recommends that shareholders vote in favour. RESOLUTION 2 A N N U A L M E E T I N G 2 0 2 5 Resolution 2 In favour 420,641,666 Against 898,027 Open 3,998,443
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OTHER BUSINESS 39 ITEM 4 A N N U A L M E E T I N G 2 0 2 5
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THANK YOU 40 A N N U A L M E E T I N G 2 0 2 5
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IMPORTANT NOTICE AND DISCLOSURE 41 This presentation prepared by KMD Brands Limited (the “Company” or the “Group”) (NZX/ASX:KMD) provides additional comment on the financial statements of the Company, and accompanying information released to the market. As such, it should be read in conjunction with the explanations and views in those documents. This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.Past performance is not indicative of future performance and no guarantee of future returns is implied or given. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or specific needs of any particular person. Potential investors must make their own independent assessment and investigation of the information contained in this presentation and should not rely on any statement or the adequacy or accuracy of the information provided. This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates. Forward-looking information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of the Company’s control, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements. The forward-looking statements are based on information available to the Company as at the date of this presentation. To the maximum extent permitted by law, none of the Company, its subsidiaries, directors, employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects, statement or returns contained in this presentation. Such forecasts, prospects, statement or returns are by their nature subject to significant uncertainties and contingencies. Actual future events may vary from those included in this presentation. The statements and information in this presentation are made only as at the date of this presentation unless otherwise stated and remain subject to change without notice. Some of the information in this presentation is based on unaudited financial data which may be subject to change. Information in this presentation is rounded to the nearest hundred thousand dollars, whereas the financial statements of the Company are rounded to the nearest thousand dollars. Rounding differences may arise in totals, both dollars and percentages. All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company. All currency amounts in this presentation are in NZD unless stated otherwise. A N N U A L M E E T I N G 2 0 2 5