New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>KMD Brands (KMD) reported FY25 underlying EBITDA (pre-IFRS 16) of NZ$18m, which was at the low end of its guidance range.</li><li>KMD’s FY26 trading update was encouraging—group sales in August were up +11% on the prior year, and Kathmandu direct-to-consumer (D2C) sales for the first seven weeks of FY26 were up +19%.</li><li>While we believe there is value on a mid-cycle basis (c.6x FY28 PE), near-term trading remains too volatile, and the margin for error for KMD too narrow, to have any confidence that the downgrade cycle has bottomed.</li></ul>

KMD Brands (KMD) reported FY25 underlying EBITDA (pre-IFRS 16) of NZ$18m, which was at the low end of its guidance range.KMD’s FY26 trading update was encouraging—group sales in August were up +11% on the prior year, and Kathmandu direct-to-consumer (D2C) sales for the first seven weeks of FY26 were up +19%.While we believe there is value on a mid-cycle basis (c.6x FY28 PE), near-term trading remains too volatile, and the margin for error for KMD too narrow, to have any confidence that the downgrade cycle has bottomed.

Kathmandu Holdings

KMD Brands FY25 Result—Fine Margins