INVESTOR DAY 2020 Chairman David Kirk Iconic Brands

• A global outdoor and action sports company, consisting of three iconic brands: • Kathmandu specialises in quality clothing and equipment for travel and adventure. • Oboz designs ‘True to the Trail®’ outdoor footwear to help people explore the wilderness. • is a leading global surf brand born in Bells Beach, in 1969.

With a shared focus expertly designed, technical and sustainable products, our brands are distributed through wholesale, retail and digital channels. INVESTOR DAY INVESTOR DAY 2020 Evolution of Kathmandu Holdings’ growth

Phase 1: Implemented a new management team ~5 years ago - Focus was on optimising the performance of Kathmandu’s assets, improving Australasian sales and market penetration, optimising profitability and elevating the Kathmandu brand.

Phase 2: Acquired Oboz in March 2018 to increase product and geographic diversification - Advanced transformation from an Australasian retailer to a global outdoor apparel and equipment brand - Consistent with international growth strategy to pursue lower risk wholesale model - Successful integration demonstrated that Kathmandu is capable of integrating complementary businesses, while preserving brand and cultural identity INVESTOR DAY INVESTOR DAY 2020 Evolution of Kathmandu Holdings’ growth

23.1% CAGR since 29 June 2015, 29.5% CAGR with dividends re-invested

2015-2019 performance evolution prior to Rip Curl acquisition Volume Price ('000) - 7.4% sales CAGR over the last 4 years $3.50 10000

- EBIT has increased by $51m to $84.3m and NPAT has nearly $3.00 8000

trebled to $57.6m $2.50 6000

- Dividend has doubled and share price has increased at 23% CAGR $2.00 4000

$1.50 2000

$1.00 0 29-Jun-15 1-Apr-16 3-Jan-17 7-Oct-17 11-Jul-18 14-Apr-19 16-Jan-20

Volume KMD XDJ Rebased Average Volume

Phase 3: acceleration of diversification strategy with Rip Curl acquisition: today’s investor day is about bringing the Rip Curl story to life and articulating why we believe Rip Curl is a great asset in our portfolio. INVESTOR DAY INVESTOR DAY 2020 Agenda

11:00am: Welcome 12:20pm - Brand marketing David Kirk, (Chairman) Michael Daly (Rip Curl CEO)

11:10am: Group strategy update Xavier Simonet (Group CEO) 12:45pm - Finance and integration Chris Kinraid (Group CFO)

11:25am - Rip Curl brand, business and strategy Michael Daly (Rip Curl CEO) 1:00pm - Lunch

1:45pm – Office tour 11:55am - Product innovation and distinctiveness 2:30pm – Flagship store visit Nichol Wylie (General Manager Product) INVESTOR DAY INVESTOR DAY 2020 Group Chief Executive Officer Xavier Simonet Vision for the Group Maintain brand affinity and cultural alignment while leveraging capabilities and delivering synergies.

Kathmandu, Oboz and Kathmandu, Oboz and Kathmandu, Oboz and Rip Curl to leverage Rip Curl to retain Rip Curl to retain their respective strengths operational ownership strong brand identities and build on each of their respective and cultural values others’ competitive businesses advantages over time INVESTOR DAY INVESTOR DAY 2020 Benefit 1 – Diversification of Kathmandu

Product and geographic diversification reduces seasonality of earnings and reliance on Australasia INVESTOR DAY INVESTOR DAY 2020 Benefit 2 – Growth enabler by leveraging capabilities INVESTOR DAY INVESTOR DAY 2020 Benefit 3 – Synergies expected over the medium term

• Sourcing: capitalising on the combined scale of Kathmandu and Rip Curl to improve gross margin, quality, costs and diversification • Systems and IT: - benefit over time from system integration between our three brands. - benefit from Kathmandu’s online experience and capabilities to support Rip Curl’s online growth • Supply Chain: leveraging the strengths of both Kathmandu and Rip Curl in Australasia as well as internationally to accelerate growth and drive efficiencies • International launch of Kathmandu: existing wholesale networks provide a platform for us to launch our Kathmandu brand in overseas markets We expect most synergies to be achieved over the medium term. INVESTOR DAY INVESTOR DAY 2020 Why Rip Curl? Creating a global outdoor and action sports company

• Rip Curl is an iconic global brand with a strong loyal customer base focused on designing and bringing to market technical products • Combined group meets the year round needs of customers globally • Rip Curl complements Kathmandu: • Global presence with established distribution network in the US, Europe and Asia • Expertise in summer outdoor and beach apparel • Expertise in the wholesale channel internationally • A number of shared capabilities that will be leveraged over time: • Technical products • Seasonal specialists • Outdoor adventure ethos • Commitment to core customers • Brand building and inspirational content INVESTOR DAY INVESTOR DAY 2020

Chief Executive Officer - Rip Curl Michael Daly a

RIP CURL: BUSINES OVERVIEW RIP CURL AT A GLANCE

» Rip Curl is a leading global action sports brand with a long-standing history in marketing, designing, manufacturing, wholesaling and retailing apparel and equipment

Overview Geographic mix(1) Distribution mix(1) Product mix(1,3) (Total revenue by region) (Total revenue by channel) (Total revenue by product) » Offers surf-related products, from highly technical wetsuits, boardshorts, swimwear and 2% 8% 15% watches to beach lifestyle 22% apparel, equipment and 25% 1% 9% accessories » Core technical innovations 6% support the premium nature of 41% 41% Rip Curl’s brand and drive sales across broader offering 4% » Technical product(1,2,3) sales 19% represent approximately 40% of 16% revenue and are critical to 11% retaining support from Rip Curl’s core surfing customers 22% » Operates a multi-channel distribution model 16% 21% 22% » Design and development capabilities across hubs in Torquay in Australia, Costa Mesa in the US and Hossegor in France 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5

(1) Represents revenue for the financial year ending 30 June 2019 from management accounts. (2) Technical products comprise wetsuits, equipment, watches, boardshorts and other products. (3) Product mix excludes revenue from third party brands (which are predominantly sold from multi-brand stores), which are not tracked by product categories. (4) Ozmosis is included in Rest of the World for the geographic mix. While it is located in Australia, it is considered separate to the underlying Rip Curl business. GLOBAL FOOTPRINT WITH STRONG REPRESENTATION IN MAJOR SURF DESTINATIONS

» Rip Curl has a direct presence across 6 key regions through stores, design and manufacturing facilities

Rip Curl Group » Direct presence in 6 key regions » c.6,000 wholesale doorways » 173 owned retail stores, 254 licensed / JV » 6 E-commerce websites

Asia » c.570 wholesale doorways North America » 3 owned retail stores, 85 » c.1,250 wholesale doorways Europe licensed / JV » » 30 owned retail stores, 10 licensed c.2,350 wholesale doorways » E-commerce website » » E-commerce website 19 owned retail stores, 23 licensed » Owned wetsuit » Global product hub located in » E-commerce website manufacturing facility in Costa Mesa, » Regional product hub located in Thailand (OnSmooth) Hossegor, France

Brazil » c.910 wholesale doorways » 3 owned retail stores, 79 licensed Australia and New Zealand » E-commerce website » c.920 wholesale doorways » 118 owned retail stores, 18 licensed / JV » 2 E-commerce websites Owned regions » Global office and product hub in Licensed regions Torquay, Victoria

Note: Rip Curl metrics as at 30 June 2019. Rip Curl also has an additional 39 licensed and JV stores in other regions including the Middle East, Africa and South Pacific. WELL ESTABLISHED AND DIVERSIFIED COMMERCIAL CHANNELS

» Rip Curl's controlled distribution has traditionally focused on the wholesale channel and has progressively evolved towards direct to customer retail

Wholesale Retail Online

» Wholesale distribution to external retail customers » Broad retail footprint of owned retail distribution » E-commerce is a relatively new channel of the Rip covering 173 owned physical locations worldwide Curl business » Primary contributor to overall company revenue − 90 flagship stores (stores located in prime tourist − Australia / New Zealand launched in 2010, North » Australia, North America and Europe are the largest destinations and iconic surf locations) America in 2011, Europe in 2014, Brazil in 2015, contributors from a region perspective Overview − 26 owned outlet stores (stores distributing old Japan in 2016 and Indonesia in 2018 season stock) » Comprises 6 E-commerce websites delivering − 57 Ozmosis stores which offer multi-brand products to Rip Curl’s 6 key regions products (operates independently to Rip Curl business primarily in shopping centres)

Key customers

Direct to consumer Direct to consumer

Note: Rip Curl metrics as at 30 June 2019. Michael Daly CEO EXPERIENCED Rip Curl since 2002 LEADERSHIP Senior Management Rip Curl’s management team is a strong combination of

long term internally Lori Showell Lachlan Farran Tony Roberts Neil Ridgway Brooke Farris Bec Christian Nichol Wylie Michael Ray developed talent and CFO GM Retail & Ops Legal Counsel CMO GM Digital GM Crew GM Product GM Wholesale Rip Curl since 2005 Rip Curl since 2004 Rip Curl since 1998 Rip Curl since 2003 Rip Curl since 2010 Rip Curl since) 2006 Rip Curl since 2002 Rip Curl since 1994 externally hired professionals. Regional Heads

Dylan Slater Mathieu Lefin President Nth America GM Europe

Rip Curl since 2004 Rip Curl since 2009 Appointed Oct 2018 Appointed March 2019 Since a private buy out of the old Association of Surfing Professionals in 2015 the World Surf League have increased broadcast quality and WHAT’S tripled the audience in online and offline channels globally, driving increased awareness of the sport HAPPENING and providing a platform for the athletes. “The League has experienced tremendous growth in recent years IN SURFING and has pioneered incredible innovations to transform surfing into a remarkable, digital-first and world class sport that naturally also Ways the sport is growing transcends into the lifestyle sector so well.” (Sophie Goldschmidt, WSL CEO) The surf apparel and equipment industry is expected to experience growing demand following the addition of surfing as an official Olympic sport and the development of wavepools. SURFING AT THE OLYMPICS WAVEPOOLS INCREASED PARTICIPATION Surfing participation levels "We are already seeing increased “For the multi-billion-dollar surfing “The global market for surfing… is driven recognition of the sport across the industry, the advent of custom-designed by the growing interest in surfing as a around the world continue to world and the Olympic Games will waves that arrive regularly and lifestyle sport, easy access to the sport provide an platform to further predictably is seen as having the through surf parks and pools and grow year on year, with a showcase surfing to the masses.” potential to help broaden surfing's technology innovations. The market is appeal and become something people also benefiting from the fitness trend.” further significant boost to the International Surfing Association president are willing to pay to experience”. Fernando Aguerre, The Australian Global Industry Analsyts, sport expected. The New York Times Global Surfing Market, May 2016 LARGE GLOBAL INDUSTRY WITH GROWTH UNDERPINNED BY TECHNICAL PRODUCTS

» Rip Curl operates in the c.A$11.3bn global surf apparel and equipment industry

Global surf apparel and equipment market (A$bn) 2014-18 CAGR » Rip Curl’s products are focused on core technical surf category, placing 10.1 10.2 10.5 10.8 11.3 2.9% emphasis on authentic alignment with the lifestyle of participants

High growth technical product category is the key focus of Rip Curl » The global surf apparel and equipment market is underpinned by a number of positive fundamentals: 3.2 3.6% 2.8 2.8 2.9 3.0 − Increased participation rates in surfing across all key surfing regions, reinforced by increasing female participation and rising interest from the 7.3 7.4 7.6 7.8 8.1 2.7% inclusion of surfing in the 2020 Olympics

− Increased online interest, reflected in the growth in web traffic for branded 1 2 3 4 5 surfwear Series1 Series2 (1) − Consumers reporting steady or increasing purchase intentions across most categories in the key markets of Australia, the US and France Core technical product expenditure (wetsuit and equipment) growth (2017-19 CAGR)(2) (%) − Strong and consistent growth in key product categories of Rip Curl (primarily 24.5% equipment and wetsuits) across Australia, the US and France

15.2% » The surf apparel and equipment market in Rip Curl’s largest region, Australia, 9.0% expanded above the global average with a 2014-18 CAGR of 4.3%

» Overall, the surf products market has a strong, committed core consumer base with steady growth in participation and spending 1 2 3

Source: GIA Report 2019, L.E.K. analysis. (1) “Technical products” includes surf wetsuits, , boardshorts and other surf equipment. (2) Based on expenditure by surveyed participants who are identified as either core surfers, casual surfers or surf-inspired consumers as defined on page 18. COMPLEMENTARY CORE CAPABILITIES THAT BENEFIT THE CONSUMER UNDER A COMBINED BUSINESS

Kathmandu Shared Rip Curl

 Technical products » Experienced retail operations » Global presence with established capabilities  Seasonal specialists distribution network in the US and Europe » Omni-channel expertise  Outdoor adventure ethos » Extensive social media, content » Track record in integrating  Commitment to core and influencer network international brands customers » Expertise in the wholesale » Expertise in large customer  Brand building and channel internationally loyalty programs marketing

Kathmandu and Rip Curl’s respective strengths will be leveraged to create a combined business that excels across product development, sales and marketing.

While maintaining the identity and cultural values of the individual brands.

NICHOL WYLIE General Manager of Product To create innovative, functional and OUR CORE PURPOSE durable products for.. “The Search” • Technical product sales represent 40% of FY19 revenue

• Critical to retaining support from our core consumer and retailer CORE base • Supports the premium nature of Rip Curl’s brand and drives sales TECHNICAL across broader offering.

PRODUCTS • Rip Curl recently won 10 awards at the Surf and Boardsports Industry Association(SBIA) annual event.

• Key awards were: Boardshort of the Year, Wetsuit of the Year, Swim Brand of the Year, Mens and Womens Brand of the Year and the prestigious award for product Innovation of the year. Leader in Innovation and Technology WETSUIT MARKET Leader in Function LEADER Leader in Quality and Service FOR OVER 30 YEARS • Fanatical dedication to Boardshorts

• Fabric Technology(stretch, quick dry, durability, hand feel, waterproof)

MEN’S • Sustainability – Saltwater Culture SURFWEAR • Continuous feedback and testing from Rip Curl’s Pro Men's Surf Team.

• Immense focus on the beach culture – Summer and Winter. • Fanatical dedication to Swim

• Designed with Style and Performance in mind. WOMEN’S • Fabric Technology (Comfort, durability, fabric interest) SURFWEAR • Sustainability – Saltwater Culture, Eco Swim Essentials • Continuous feedback and testing from Rip Curls Pro Women’s Surf Team.

• Immense focus on the beach culture – Summer and Winter. • Fanatical dedication to Travel on “The Search”

TECHNICAL • Fabric Construction and Technology (light weight, functional and durable) EQUIPMENT (Men’s & Women’s) • Sustainability – Saltwater Culture

• Athlete Integration – Backpacks, Wheelie Bags, Surf Access • Fanatical dedication to Surf Watches.

• Tide watches let the surfer know what the tide is doing at a glance.

WATCH • GPS Technology lets the surfer track every surf and every TECHNOLOGY length of ride • Service – warranty and repairs.

• Athlete Integration • To continue to be regarded in all that we do as the Ultimate Surfing Company

• To continue to develop market leading innovative products (tech and apparel)

KEY • To leverage the strengths of Kathmandu into Rip Curls offering AREAS OF whilst keeping Rip Curls DNA. FOCUS • To produce Quality Surf Products the distinguish Rip Curl from its competitive set

• To stand behind our products with best in class product service.

The Search Leadership Technology Tradition THE Crew Fun RIP CURL BRAND Irreverence Respect VALUES Durability THE DNA OF THE BRAND Reliability A clear filter which captures our spirit and which we put all Belief product ideas and marketing messages through to decide if they are on brand for Rip Curl.

THE ULTIMATE SURFING COMPANY

Born in Bells Beach, Australia, in 1969, Rip Curl has always been a brand on The Search “The Search was the driving force that led to the creation of Rip Curl... We loved charging into the unknown and the journey that waited. It was about the great sense of adventure, anticipation, curiosity and the chance to score great uncrowded waves. Rip Curl helps us live this life...” – Doug ‘Claw’ Warbrick (Rip Curl Co-Founder)

4 HIGHLY RECOGNISABLE, GLOBAL BRAND

» Rip Curl’s brand is highly recognisable across surfwear, wetsuit and equipment categories in Australia, the US and France » Demonstrable brand affinity with core surf customers who value product functionality and performance showcased by world class pro team and events program

Brand awareness (2019)

Australia US France

(1) (1) #2 NPS of all #5 NPS of all #1 NPS(1) of all wetsuit brands wetsuit brands surfwear brands 99% 93% 91% 83% 86% 78% 78% 83% 82%

Surfwear Wetsuits Equipment

Key highlights

Surfwear Wetsuits Equipment

» High brand awareness and purchase conversion across all » Market leader for wetsuits in Australia, with strong » Brand awareness among core, casual and surf-inspired categories of consumers (from casual to core surfers) in purchase penetration driven by technical product customers is high, driven by product quality and functional Australia excellence performance

» Second highest purchase penetration in France, with most » Wetsuits resonate most strongly with core and casual support from core and casual surfers surfers across all markets, supported by Rip Curl’s technical product focus

Source: L.E.K. analysis. Note: Core surfer defined as someone who surfs 8+ times per year; casual surfer as someone who surfs 1-7 times per year; and surf-inspired consumers are those who have an aspirational surf and beach lifestyle but do not surf. (1) Net promoter score, determined by % promoters - % detractors. 5 PART OF THE FABRIC OF AUTHENTIC GLOBAL

World Class Athletes

The Ultimate Sports Event Platform

Social Media(1)

Content Creation Advertising 2.0m+ fans 2.0m+ 119k Distribution globally Followers(2) subscribers 200k+ customers reached daily • World Surf League Bells (April); Rip Curl Pro Portugal (October) are six month anchors.

• Rip Curl Gromsearch Our global junior event series runs across the planet and recruits the next Events generation.

• Padang Cup premier event for non – WSL “outlaws” connects with a different audience.

• Integrated Merchandise and Marketing Campaigns for all core products across all online and offline channels, in both media and sales …

Content • Centralised content creation to avoid waste. Creation • Brand first content that reflects our Vision of being the ultimate surfing company in all that we do... • Continued centralisation of content and campaigns.

• Marketing driving footfall to retail and traffic Key Areas of online, better use of CRM to understand Focus customer and begin RC Loyalty Club.

• Staying on brand and authentic to the Vision of being “Regarded as the Ultimate Surfing Company in all that we do…” Group Chief Financial Officer Chris Kinraid Creating a NZ$1.0bn company Rip Curl transaction expected to deliver meaningful EPS accretion – in excess of 10% pre-synergies INVESTOR DAY INVESTOR DAY 2020 Financial strategy: balance sheet KMD to maintain a conservative capital structure • Kathmandu intends to maintain a conservative capital structure, however maintain investment levels where appropriate to enable growth • We are comfortable with the pro-forma debt levels of 1.5x Net Debt / EBITDA following the acquisition, we intend to reduce net debt to ~1.0x - 1.1x EBITDA by the end of FY21 • Highly successful syndication of debt facilities completed with $A355m of debt facility, maturing October 2022 • Strong group of funding partners achieved and well supported by Australasian banks • Leasing standard to be reported for 1H FY20, - key metrics to be adjusted; no impact on cash flow or covenants INVESTOR DAY INVESTOR DAY 2020 Financial strategy: strong cash flow Brands have a history of strong cash flow generation • 3 strong cash generating brands • Focus on inventory management, targeting improved Kathmandu Cash Flow Sources and Uses stock turns for each brand 140 120 • Global sourcing strategy implemented by Rip Curl 100 expected to drive improved inventory levels $m 80 • Capex investment levels to support integration, omni- NZD 60 channel strategy and enhanced store optimisation c$30m 40 annually 20 0 • Dividend payout remains flexible between 50-70% of FY16 FY17 FY18 FY19 NPAT depending on trading performance and investment Capex Interest Paid Dividends requirements Acquisitions Operating Cashflow • Net debt reduction to meet leverage targets INVESTOR DAY INVESTOR DAY 2020 Synergies expected over the medium term Key work streams have been identified and progressed Supply Chain and Sourcing • Focus areas on common fabrics and supplier consolidation • Alignment of terms, standards, compliance and quality • Combined brand sourcing workshops have been held with opportunity charters in place Systems and IT • Kathmandu’s online capabilities can be leveraged to accelerate growth in Rip Curl’s online channel with common online platforms • Priority on online capability and value generating systems investment • Leveraging existing Rip Curl investments and infrastructure to support D2C internationally for Kathmandu and Oboz Other • Opportunity charter completed for cost synergies across spend categories • Activities underway to drive cost improvements across the Group • Leveraging Rip Curl’s international capability to enable wholesale growth for Kathmandu INVESTOR DAY INVESTOR DAY 2020 INVESTOR DAY 2020