FY20 Annual Results Announcement

23 September 2020 (All amounts in NZ$ unless otherwise stated) Transformational year with Rip Curl acquisition, well positioned in response to COVID-19 o Successful acquisition and integration of Rip Curl o Business growth constrained by lockdown-related store closures o Strong balance sheet with low net debt and healthy inventory position o Resilience of all the brands underpins sales recovery post-lockdown, and continued acceleration of online sales FY20 key highlights (vs FY19): o Acceleration in online sales, with group online sales up 63% to $106.4 million, now comprising 15.7% of direct to consumer ("DTC") sales (1) -- Rip Curl online sales up 52% to $25.5 million; 10.6% of DTC sales -- Kathmandu online sales up 67% to $80.9 million; 18.5% of DTC sales o Group sales up 48.7% to $801.5 million, including 9 months of Rip Curl -- COVID-19 impact estimated at c. $135 million of sales ($80 million retail and $55 million wholesale) o Statutory NPAT of $8.9 million includes $18.0 million of one-off transaction costs, $4.6 million of restructuring costs and a $2.6 million impact from the implementation of the IFRS 16 leasing standard (in total $22.6 million impact net of tax) o Group Underlying EBITDA down 15.3% to $83.4 million (excluding the impact of IFRS 16 and one-off transaction and abnormal costs) o Group Underlying NPAT down 44.5% to $31.5 million (excluding the impact of IFRS 16 and one-off transaction and abnormal costs) o Operating cash flow up 50.9% to $93.1 million (adjusted for impacts of adopting IFRS 16) o $207 million capital raise provided balance sheet strength and optionality for future growth, with closing net debt of $9.4 million Kathmandu Holdings Limited (ASX/NZX: KMD) is pleased to announce its results for the twelve months ended 31 July 2020 (FY20). The following are attached in relation to Kathmandu Holdings Limited's Full Year Result for the period to 31 July 2020: 1. Results Announcement 2. Media Announcement 3. Financial Statements and Independent Auditor's Report 4. Investors Presentation For further information, please contact: Investors Eric Kuret Market Eye P: +61 417 311 335 E: eric.kuret@marketeye.com.au Media Helen McCombie Citadel-MAGNUS P: + 61 2 8234 0103 (1) Sales from Rip Curl and Kathmandu retail stores and direct online sites and marketplaces. Both years include a full year of Rip Curl sales for comparability, including $3.7 million Rip Curl online sales for the three months pre-acquisition in FY20. End CA:00360222 For:KMD Type:FLLYR Time:2020-09-23 09:30:54