Kathmandu : Annual Meeting transcript

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Company:	Kathmandu Holdings Limited
Conference Title:	Annual Shareholders Meeting 2021
Date:	Tuesday 23 November
Conference Time:	1:00pm NZDT
Webcast:	The webcast for the 2021 Annual Meeting can be viewed at
	https://vimeo.com/648880991/ca15b532e4

1. WELCOME:

Chairman:	Good morning everyone. My name is David Kirk and I am pleased to
	welcome you as Chairman of Kathmandu Holdings Limited to our 2021
	Annual Shareholders Meeting.
	The Board decided to convene this year's Annual Meeting as a virtual-
	only meeting given the ongoing uncertainties caused by COVID-19 and
	the restrictions on travel and gatherings that we have all experienced
	during 2021.
	I extend a warm welcome to all shareholders joining us online today
	through our virtual meeting platform provided by our share registrar,
	Link Market Services.
	I declare that a quorum of shareholders is present and the meeting has
	been duly convened. I am also pleased to officially open online voting.

2. INTRODUCTION:

Chairman:	Before we start the formal business, I would like to introduce my fellow
	Directors to you.
	•	Philip Bowman;
	•	John Harvey;
	•	Abby Foote;
	•	Brent Scrimshaw;
	•	Andrea Martens;

• and Michael Daly, our Group CEO and Managing Director

I also welcome Leo Foliaki and Inky Lee from PricewaterhouseCoopers,

Chris Kinraid, our Group Chief Financial Officer, and Frances Blundell,

Company Secretary.

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3. MEETING PROCEDURES:

Chairman:	In terms of the format of today's meeting, I will start by making some
	brief comments about the 2021 financial year for Kathmandu Holdings.
	I will then hand over to Michael, who will provide more details on the
	achievements and challenges we have experienced during the past
	year, including a summary of the Group's financial performance and
	future strategy.
	We will then move to the formal business of the meeting. There are
	four resolutions to be considered by shareholders today and these are
	set out in the Notice of Meeting. An opportunity will be given to
	shareholders to ask questions about, or make comments on, the items
	of business on the agenda for today's meeting.
	All voting on the resolutions to be put to today's Meeting will be
	conducted by way of a poll.
	To vote, you will need to click "Get Voting Card" within the online
	meeting platform. You will be asked to validate your registration by
	entering your Shareholder or Proxy Number, which can be found on
	your proxy form. Once your registration is validated, you will receive
	an electronic voting card which will enable you to cast your votes on
	each of the resolutions that we will consider today. You can cast your
	votes on the resolutions at any time during the meeting today.
	Please mark your voting card in the way you wish to vote by clicking
	"FOR", "AGAINST" or "ABSTAIN" on the voting card. Once you have
	made your selection please click "Submit Vote" on the bottom of the
	card to lodge your vote.
	If you have any issues with registration or voting, please refer to the
	Link Market Services virtual meeting online portal guide that can be
	accessed through the virtual meeting weblink or call the helpline on
	0800 200 220.
	There will also be an opportunity, after the resolutions set out in the
	Notice of Meeting have been considered, for shareholders to ask any
	questions of a more general nature.
	To ask a question online, you will need to validate your registration.
	Please use the question function, and your question will be conveyed
	to the meeting. If you need further information about how to ask a
	question, please refer to the virtual meeting online portal guide or call

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4. PROXIES:

Chairman:

the help line on 0800 200 220. I would encourage you to send through your questions as soon as you can. Questions may be moderated or combined with other questions where they relate to the same topic.

Valid proxies have been received from 311 of shareholders holding approximately 58% of issued shares. More than 95% of the proxies directed are in favour of all resolutions.

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5.	MINUTES
	Chairman:	The minutes of the 2020 Annual Meeting held last year have been
		reviewed and approved by the Board and signed by me as a true and
		correct record of the meeting.

6. ANNUAL REPORT

Chairman:I also note that the Company's Annual Report is available to all

shareholders through the Company's investor website. Any shareholder who has not received a copy of the Annual Report in the post, but would like to request a physical copy, can do so by contacting the Company Secretary or our share registrar, Link Market Services. We will address any questions from shareholders on the Annual Report or Financial Statements under General Business later in the meeting.

7. CHAIRMAN'S

ADDRESS

Chairman:The first item on today's agenda is for me, as Chairman, to make

some comments on the 2021 financial year.

The Group ended the 2021 financial year in a strong financial position, while continuing to navigate the impacts of the COVID pandemic.

Following the acquisition of Rip Curl in 2019, the Group has three iconic brands, and our results for the 2021 financial year show the benefit of the Group's diversified channels to market, geographies, and product categories.

We are excited by the growth prospects of all our brands, and are investing in digital infrastructure, our store network, and continued brand development to maximise opportunities as we look to a post- COVID world.

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The Group moved quickly at the onset of the COVID pandemic to raise capital to strengthen the balance sheet, reduce costs and adjust operating structures, all of which has left us well-positioned for the recovery in travel and the opening of economies that is happening now.

The Group ended the 2021 financial year with a net cash position of $37.0 million, providing significant funding headroom with a total bank facility of approximately $300 million.

Following the suspension of dividends last year, the directors declared a final dividend of 3 NZ cents per share. With the 2 cents per share interim dividend, this will make a total pay out for the 2021 financial year of 5 NZ cents per share.

Moving on to people, the Board appointed a new Group Chief Executive Officer during the year.

Former Group CEO Xavier Simonet resigned after five and a half years with the company. Xavier led the Group through an important period of growth and diversification, including the acquisitions of the Oboz and Rip Curl brands.

After an extensive international search, the Board appointed Michael Daly as the new Group CEO. Michael has led Rip Curl for eight years with a relentless focus on brand, product, people and the bottom line. We are confident he will bring the same focus and energy to the wider Group.

Under the leadership of Michael, our refreshed Group strategy ensures we are focused on the things that matter most as we move forward:

• building global brands focused on active outdoor activities,
• investing in digital platforms to provide consumers with a truly world class unified commerce experience,
• leveraging the operational excellence of our brands, and
• leadership in ESG.

Michael will talk more about these strategic imperatives in his address.

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The Board would like to thank Michael and his teams for their outstanding resilience and flexibility navigating the ongoing impacts of COVID.

I would also like to thank my Board colleagues for their continuing commitment to making Kathmandu Holdings successful. It has been a very busy year and I thank you all for your support in navigating our way through it.

Finally, thank you shareholders for your continued investment in

Kathmandu Holdings Limited.

I will now ask our Group CEO, Michael Daly, to address you.

8. GROUP CEO ADDRESS

Group CEO:	Thank you, David. Good Morning everyone, and thank you for joining us at
	today's Annual Meeting.
	Beginning on slide five, we aspire to be a leading owner of global brands,
	appealing to an active, outdoor consumer. This slide outlines the strengths
	and collective competitive advantages of our three brands.
	Rip Curl is among the top three global surf brands, Kathmandu is the leading
	outdoor brand in Australasia, and Oboz is a fast-growing North American hike
	footwear brand.
	We are highly engaged with our loyal and active consumer base, achieving a
	net promoter score that exceeds 70. We have 2.1 million active Summit Club
	members and 44,000 Rip Curl Search GPS watch users.
	One of our key strengths is the development of purpose-built technical
	products. Research and development drives our innovation, and we are
	focused on using sustainable materials.
	A leader in sustainability and ESG. Kathmandu was an early B-Corp adopter,
	and we are working towards extending B-Corp accreditation across all of our
	brands. This year, we also committed to the largest syndicated sustainability
	linked loan in New Zealand.
	Most importantly, we have built a diversified business with global reach. We
	are employing a multi-channel approach to appeal to a wide range of
	customer buying preferences and having both a winter and summer focus.
	We now appeal to customers across seasons and across the globe.

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