Chair and Group CEO’s Presentation 2019 Annual Meeting

Annual Shareholders’
Meeting
November 2019

Board of Directors
2
Joan Withers
Chair & Independent
Non-Executive Director
Keith Smith
Deputy Chair & Independent
Non-Executive Director
Julia Raue
Independent
Non-Executive Director
Robbie Tindall
Non-Executive Director
(Alternate to Sir Stephen Tindall)
John Journee
Independent
Non-Executive Director
Anthony Balfour
Independent
Non-Executive Director
Will Easton
Independent
Non-Executive Director
Renee Mateparae
Future Director

Group Executives on the Stage
3
Nick Grayston
Group Chief Executive Officer
Jonathan Oram
Group Chief Financial Officer
Mark Yeoman
Group Chief Operating Officer

Order of Business
4
1. Welcome and Chair’s AddressJoan Withers
2. Group CEO’s ReviewNick Grayston
3. Business of Meeting
•Re-election of Directors
•Auditor Fees
•Constitution Amendments
•General Business
Joan Withers
4. Q&AAll
5. Refreshments

Chair’s Address
Joan Withers

FY19 Overview
Chair’s Address
6
2,995
3,071
FY18FY19
Group Sales ($m)
+2.6%
59
74
FY18FY19
Adjusted NPAT ($m)
+25.6%
162
76
FY18FY19
Net debt ($m)
-53.1%
175
transformation initiatives
completed

Chair’s Address
7
Share Price
Integrated Reporting and our
‘social license to operate’
Board Update
$2.86
$1.90
$2.10
$2.30
$2.50
$2.70
$2.90
$3.10
Nov-18Feb-19May-19Aug-19Nov-19
Share price (1 year)
+32.4%

Chair’s Address
8
94%
80%
81%
94%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
10
11
12
13
14
15
16
17
18
19
20
FY15FY16FY17FY18FY19
Payout ratio
Cents per share
Dividend (cps) and Pay-out Ratio FY15 -FY19
Dividends cents/sharePayout ratio
Dividend

Group CEO’s Review
Nick Grayston

Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Progressing Our Transformation
10
RISE –way of working
Systems and processes
Digital future / Customer experience
EDLP
Creation of COEs

Our Ecosystem
11
Enabled by: World-class team, partners and technology
For: Our communities, our investors, our planet
Leveraging: Our reach, our customer insights, our ability to serve

12

Building a Change Able Performance Culture
13
We provide exceptional
experiences by putting our
customers first
We are change able and
have a winning culture
We are productiveand
make speed a habit

FY19 Annual Result
14
•Retail Sales up 2.6% on last year with sales growth across all
our brands and improving momentum into year end
•Retail Gross Profit up 3.8% and Gross Margin improvement
of 40 basis points, reflecting benefits of our transformation
programme
•Cost of Doing Business up 1.8% but down as a percentage of
Sales reflecting investment in transformation, Torpedo7 store
network growth and TheMarket
•Overall, it was a strong year for the Group with Operating
Profit up 22.9% and Adjusted NPAT from Continuing
Operations up 25.6%
•Operating Cash Flow up 83.5%, benefiting from overall
performance and working capital initiatives
•The Board have announced a Final Dividend of 8.0 cps
bringing the total pay-out for FY19 to 17.0 cps (up from
16.0 cps in FY18)
$ million20192018Variance
Retail Sales
3,071.4 2,994.6
2.6%
Retail Gross Profit
1,028.6 991.2
3.8%
Gross Margin %33.5%
33.1%
40 bps
Retail CODB
916.2 899.8
1.8%
CODB %29.8%
30.0%
(20) bps
Retail Operating Profit
112.4 91.4
22.9%
Operating Margin %3.7%
3.1%
60 bps
Continuing NPAT (Reported)
67.3 27.3
146.9%
Continuing NPAT (Adjusted)
74.1 59.0
25.6%
NPAT (Reported)
65.4 22.9
185.8%
Operating Cash Flow
198.0 107.9
83.5%
Ordinary Dividend
17.0 16.0
1.0 cps
For the period ended 28 July 2019

Group H1 and H2 Performance
15
For the Year ended 28 July 2019
$ millionH2H1
20192018Variance20192018Variance
Retail Sales
1,430.8 1,396.5
2.5%
1,640.5 1,598.1
2.7%
Retail Gross Profit
495.4 468.7
5.7%
533.2 522.5
2.1%
Gross Margin %34.6%33.6%100 bps
32.5%32.7%
(20) bps
Retail CODB
443.5 435.7
1.8%
472.7 464.1
1.9%
CODB %31.0%31.2%(20) bps
28.8%29.0%
(20) bps
Retail Operating Profit
51.9 33.0
57.2%
60.5 58.4
3.5%
Operating Margin %3.6%2.4%120 bps
3.7%3.7%
-
Continuing NPAT (Adjusted)
34.5 21.3
61.5%
39.6 37.7
5.2%
•We are pleased with the H2 result for the Group, particularly with the warmer weather impacting seasonal sales
•Second half began to show benefits of initiatives focused on gross margin improvement
•Significant improvement in H2 profitability due to trading, improvement in the quality of the balance sheet, and relatively lower incentives

Divisional Summary
16
$1,705.7m
55.5%
The
Warehouse
$924.6m
30.1%
Noel
Leeming
$268.6m
8.7%
Warehouse
Stationery
$172.5m
5.6%
Torpedo7
Group
$85.1m
The
Warehouse
$38.1m
Noel
Leeming
$16.7m
Warehouse
Stationery
-$7.0m
Torpedo7
Group
-$20.4m
Other*
$112.4m
Total Group
Retail Sales FY19Retail Operating Profit FY19
*Includes Digital Retail costs (TheMarket) of $6.0m and $14.4m of Other Group costs
$3,071.4m

17
Delivered
a record
operating
profit in
FY19
The Warehouse and Warehouse Stationery
FY19 was a year of development and
transformation for The Warehouse

18
Noel Leeming
FY19 was the
best retail
operating profit
ever!
Continuing our focus on innovation

19
Torpedo7
Continued to
execute on our
strategy of
brand clarity, a
refined product
offering and
store
expansion
Torpedo7 Westfield Newmarket

FY19 Online performance
1
Based on normalised online sales adjusted for the closure of online platforms during FY19.
2
Based on online sales of omni-channel brands (The Warehouse, Noel Leeming, Warehouse Stationery and Torpedo7).
3
Apple iOS App Store and Google Play Store.
20
$239m
in online sales, now representing
7.8% of Group Sales
1
244%
sales growth on
The Warehouse App
36%
percentage of online sales fulfilled
through Click & Collect
2
5.5%
increase in online traffic
18%
growth in online sales
1

#hereforgood
21

Q1 FY20 Sales Update
22
+2.4%
Retail Sales
QoQ
+3.1%
Same Store Sales
QoQ
+7.3%
Retail Sales
QoQ
+6.1%
Same Store Sales
QoQ
+2.1%
Retail Sales
QoQ
+0.6%
Same Store Sales
QoQ
+3.0%
Retail Sales
QoQ
-0.6%
Same Store Sales
QoQ

Senior Executive Team
23
Nick Grayston
Group CEO
Jonathan Oram
Group CFO
Mark Yeoman
Group COO
Scott Newton
Chief Transformation Officer
Evelyn Ross
Chief People Officer
Jonathan Waecker
Chief Marketing Officer
Pejman Ohkovat
CEO TWL/WSL
Tania Benyon
CEO Group Sourcing Support
and TWL/WSL Merchandise
Tim Edwards
CEO Noel Leeming Group
Simon West
CEO Torpedo7 Group
Justus Wilde
CEO TheMarket.com

Business of Meeting
Joan Withers

•Chair and Independent Non-Executive Director
•Appointed Director 23 September 2016
•Chair of the Corporate Governance and Nomination Committee, Member of
the Audit and Risk Committee, Member of the Disclosure Committee,
Member of the Health, Safety and Wellbeing Committee and Member of the
People and Remuneration Committee
•Proxy voting in respect of this resolution is:
A total of 188,629,365 proxy votes received, 186,982,443 votes for, 16,395
against, votes undirected 1,630,527 and 43,765 votes abstain giving a result
of 99.13% votes cast in favour of the resolution
Resolution 1 –Re-election of Joan Withers
25

•Independent Non-Executive Director
•Appointed 23 September 2016
•Chair of the Health, Safety and Wellbeing Committee and Member of the
Audit and Risk Committee
•Proxy voting in respect of this resolution is:
A total of 188,603,003 proxy votes received, 186,799,970 votes for, 70,575
against, votes undirected 1,732,458 and 70,127 votes abstain giving a result
of 99.04% votes cast in favour of the resolution
Resolution 2 –Re-election of Julia Raue
26

•That the Directors are authorised to fix the fees and expenses of PricewaterhouseCoopers as
auditors for the ensuing year
•Proxy voting in respect of this resolution is:
A total of 188,628,464 proxy votes received, 186,742,406 votes for, 96,259 against, votes
undirected 1,789,799 and 44,666 votes abstain giving a result of 99.00% votes cast in favour of
the resolution
Resolution 3 –Auditor Fees
27

•That The Warehouse Group Limited amend its constitution in the form and manner described in
the explanatory notes to the notice of meeting, with effect from the close of the Annual
Shareholders Meeting
•The Company transitioned to the NZX Listing Rules on 1 March 2019. To comply with the NZX
Listing Rules, the Company needs to amend its constitution
•The amendments are limited to those required to conform to the NZX Listing Rules, removing
references to the ASX Listing Rules, changes to update relevant legislative references and to
allow for electronic voting
•Proxy voting in respect of this resolution is:
A total of 188,623,964 proxy votes received, 186,805,554 votes for, 6,156 against, votes
undirected 1,812,254 and 49,166 votes abstain giving a result of 99.04% votes cast in favour of
the resolution
Resolution 4 –Amendment of Constitution
28

To cast your vote please tick one box either for, against or abstain alongside each resolution on the
voting paper.
Undirected Votes held by Directors by Resolution
1.161,601
2.213,969
3.224,810
4.231,265
Voting Procedure
29

General Business
Joan Withers

Questions

THANK YOU
32

This presentation may contain forward looking statements and projections. There can be no certainty of the outcome and projections involve known and unknown risks, uncertainties, assumptions and
other important factors that could cause the actual outcomes to be materially different from the events or results expressed or implied by such statements and projections.
While all reasonable care has been taken in the preparation of this presentation, The Warehouse Group Limited does not make any representation, assurance or guarantees as to the accuracy or
completeness of any information in this presentation. The forward-looking statements and projections in this report reflect views held at the date of this presentation.
Except as required by applicable law or any applicable Listing Rules, the Relevant Persons disclaim any obligation or undertaking to update any information in this presentation.
A number of non-GAAP financial measures are used in this presentation. You should not consider any of these in isolation from, or as a substitute for, the information provided in the audited
consolidated financial statements, which are available at www.thewarehousegroup.co.nz.
This presentation does not constitute investment advice, or an inducement, recommendation or offer to buy or sell any securitiesin The Warehouse Group Limited.
Disclaimer
33