The Warehouse Group 2020 Interim Results Announcement

The Warehouse Group Limited

26 The Warehouse Way
Northcote, Auckland 0627
PO Box 33470, Takapuna
Auckland 0740, New Zealand

phone +64 9 489 7000
fax +64 9 489 7444
web www.twg.co.nz




17 March 2020


Listed Company Relations
New Zealand Exchange Limited


The Warehouse Group Limited

Unaudited results for the 26 weeks ended 26 January 2020

The following are attached in relation to The Warehouse Group’s Interim Result for the period
To 26 January 2020:

1. Results Announcement
2. Investor Presentation
3. Media Release
4. Interim Financial Statements for the 26 weeks ended 26 January 2020
5. Auditors Independent Review Report
6. Distribution Notice
7. Quarterly Sales Report


Jonathan Oram
Chief Financial Officer

ENDS
Contact details regarding this announcement:

Investors and
Analysts:
Jonathan Oram, Chief Financial Officer
To be contacted via Sam Kater
+64 21 953 701, sam.kater@thewarehouse.co.nz

Media: Nick Grayston, Group Chief Executive Officer
To be contacted via Jordan Schuler
+64 21 143 6930, media.enquiries@thewarehouse.co.nz.

---

Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 26 weeks to 26 January 2020
Previous Reporting Period 26 weeks to 27 January 2019
Currency New Zealand dollars
$1,683,393
$1,683,431
$29,564
$28,783
Interim Dividend
Record Date 02 April 2020
Dividend Payment Date 17 April 2020
Contact phone number
Contact email address
Date of release through MAP
Unaudited financial statements accompany this announcement.
17 March 2020
$0.10000000
$0.03888889
Authority for this announcement
Name of person authorised to
make this announcement
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Total net profit/(loss)
09 217 7651
up 2.6 %
Current periodPrior comparable period
down (19.6)%
Jonathan.Oram@thewarehouse.co.nz
Net tangible assets per
Quoted Equity Security
Contact person for this
announcement
Jonathan Oram (Group Chief Financial Officer)
Prior period comparative amounts have not been restated following the
adoption of NZIFRS 16 in the current year, which can make prior period
comparisons difficult. The impact of adopting NZIFRS 16 on the current year
income statement, balance sheet and cashflow statement are summarised in
notes 15 to 18 of the Financial Statements which are provided with this results
announcement.
Amount per Quoted Equity
Security
Imputed amount per
Quoted Equity Security
Jonathan Oram (Group Chief Financial Officer)
66.9 cents (26 January 2020) 104.4 cents (27 January 2019)
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change
Revenue from continuing
operations
Net profit/(loss) from
continuing operations
Total Revenue
up 2.6 %
down (21.0)%

---

______________________________________________________________

To: Market Information Services Section
NZX Limited
_________________________________________________________________________________


Auckland, 17 March 2020

The Warehouse Group Half Year result up 16.7% on the previous corresponding period
Highlights
• Adjusted Net Profit After Tax of $46.2m for the half, an increase of 16.7% on the previous
corresponding period
• Group retail sales up 2.6% to $1,683.4m
• Interim dividend of 10 cents per share, up one cent on the FY19 interim dividend

The Warehouse Group (“Group”) has delivered adjusted Net Profit After Tax of $46.2m for the first half
of financial year 2020 (“H1 FY20”), up 16.7% on the prior corresponding period. Group retail sales were
up 2.6% to $1,683.4m and online sales grew 7% to be 7.9% of all Group sales. Reported Net Profit After
Tax, which includes unusual items, is down 20% to $29.9m. Of the $16.3m in unusual items, $14.9m
relates to investment in our transformation which is expected to have ongoing benefits.

Group CEO Nick Grayston said the result is a positive start to FY20 trading, given the compressed
Christmas trading period and some issues with fulfilment in The Warehouse and Warehouse Stationery
brands.

“Despite some challenges, good trading momentum has continued to date, however the uncertainty
around the impact of the COVID-19 measures put in place by government creates significant
uncertainty for the second half of the year,” said Mr Grayston.

While there were some operational challenges from an initiative to centralise fulfilment operations and
deploy a warehouse management system, a recovery team was deployed to address these challenges
and early fixes have alleviated major issues. The expectation is that by the end of March most issues
will be rectified, and online sales growth is expected to return for The Warehouse and Warehouse
Stationery by H1 FY21.

After a strong first quarter with sales growth of 2.4%, The Warehouse sales grew 1.0% to $938.8m for
H1 FY20 as a shift in timing of the Black Friday promotional event compressed the Christmas peak
trading period and this, combined with cooler weather and issues with online fulfilment capability,
resulted in lower Q2 sales growth.

Gross margin growth was seen across all major categories in The Warehouse with particularly strong
results in Home, Grocery, Intimates and Accessories. Overall, retail operating profit grew 28.4% to
$59.8m with an operating margin percentage increase of 140 bps to 6.4%.

Warehouse Stationery continued to build on the momentum established during a record breaking
FY19, delivering a strong H1 FY20 performance. Retail sales were up 0.8% with a 250bps improvement
in gross margin. Three further integrations of The Warehouse and Warehouse Stationery stores were
established, taking the total number of integrations to 13. Current performance of the integrated
stores is positive, and further refinement will be made as part of future Red and Blue store integrations.
We continue to proactively assess opportunities to undertake this integration across our portfolio of
Red and Blue stores. Retail operating profit for Warehouse Stationery increased 57.3% to $9.3m, with
operating margin improving 250 bps to 7.0%.

Noel Leeming delivered an excellent result with H1 FY20 sales increasing 5.2%. The brand performed
well through the major trade events for the first half of the year, with its best-ever Black Friday and
Boxing Day Sale periods. Gross profit increased 8.1% through higher sales volumes with an
improvement in gross profit margin of 60 bps. Operating profit increased 22.1% to $21.4m, which was
a record H1 result for the brand through a continued focus on managing costs and reaping the ongoing
benefits of transformation initiatives.

Torpedo7 Group sales grew 9.4% , with gross profit up 9.7%. Torpedo7 continues to undergo significant
change in H1 FY20 with a new CEO, store network expansion, and increased investment to support
future profitability, culminating in a 19.2% increase in the cost of doing business and a retail operating
loss of $4.2m. The Torpedo7 Group also comprises 1-day.co.nz.

The Group’s marketplace TheMarket.com, which launched 1 August 2019, now offers over two million
products and 3,000 brands. It is still early in the development of this platform and progress is in line
with expectations.

The Group remains in a strong financial position with a net debt of $69m and gearing ratio pre NZIFRS
16 impact of 12.6%, providing sufficient capacity to fund investment in growth and strategic initiatives.
The maturity date of the listed bond (WHS020) is June 2020 and as the Group values access to diverse
capital sources it is currently assessing options regarding the issue of a new bond on the NZX.

Outlook
The Group has undertaken a significant amount of change which has been critical in establishing a
‘customer-first’ mindset and fixing the retail fundamentals of the Group. This has translated into
strong financial performance and a balance sheet that provides flexibility to invest in growth
initiatives and weather changes to economic conditions.
The Group continues to assess the impact of the COVID-19 pandemic on financial performance,
including stock availability from impacts to our offshore supply chain, potential impacts to our
employees and operations in New Zealand and in Asia, and our customers. On 26 February we stated
that we currently do not expect there to be a material impact on FY20. We continue to see positive
momentum in our sales and operating performance, however this could change dramatically as a
result of COVID-19 impacts.
At this point in time our FY20 adjusted Net Profit After Tax is expected to be in the range of $75m -
$77m, subject to no material changes in trading conditions. We are heavily caveating this expectation
given the potential effect on the economy and our business of necessary measures the government
may implement to control and mitigate the spread of COVID-19.
The Directors are pleased to declare an interim dividend for H1 FY20 of 10.0 cents per share, fully
imputed, payable on 17 April 2020.
ENDS
Contact details regarding this announcement:

Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Sam Kater
+64 21 953 701, sam.kater@thewarehouse.co.nz

Media: Nick Grayston, Group Chief Executive Officer
To be contacted via Jordan Schuler
+64 21 143 6930, media.enquiries@thewarehouse.co.nz.

---

For and on behalf of the Board
Joan WithersKeith Smith
ChairChair of the Audit and Risk Committee
The Warehouse Group Limited
For the 26 weeks ended 26 January 2020
Interim Financial Statements

Consolidated Income Statement
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
26 January 27 January 28 July
Note
2020 2019 2019
$ 000 $ 000 $ 000
Continuing operations
Retail sales
3
1,683,393 1,640,537 3,071,357
Cost of retail goods sold(1,117,340)(1,107,308)(2,042,722)
Gross profit566,053 533,229 1,028,635
Other income4,892 5,505 8,325
Employee expenses(286,193)(274,041)(520,892)
Depreciation and amortisation expenses
3
(75,986)(30,318)(60,613)
Other operating expenses(121,193)(173,925)(343,077)
Operating profit from continuing operations
3
87,573 60,450 112,378
Unusual items
4
(21,918)(3,036)(9,435)
Earnings before interest and tax from continuing operations65,655 57,414 102,943
Net interest expense(23,681)(5,087)(8,879)
Profit before tax from continuing operations41,974 52,327 94,064
Income tax expense(12,410)(14,914)(26,621)
Net profit for the period from continuing operations29,564 37,413 67,443
Discontinued operations
Loss from discontinued operations (net of tax)
14
(781)(1,605)(1,928)
Net profit for the period28,783 35,808 65,515
Attributable to:
Shareholders of the parent
29,155 35,825 65,382
Minority interests(372)(17)133
Net profit for the period28,783 35,808 65,515
Profit attributable to shareholders of the parent relates to:
Profit from continuing operations
4
29,936 37,430 67,310
Loss from discontinued operations(781)(1,605)(1,928)
Profit attributable to shareholders of the parent29,155 35,825 65,382
Earnings per share attributable to shareholders of the parent:
Basic earnings per share8.4 cents 10.4 cents 18.9 cents
Basic earnings per share - continuing operations8.7 cents 10.8 cents 19.5 cents
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Net profit for the period28,783 35,808 65,515
Items that may be reclassified subsequently to the Income Statement
Movement in foreign currency translation reserve(28)(39)19
Movement in hedge reserves (net of tax)(8,244)(15,665)(11,941)
Total comprehensive income for the period20,511 20,104 53,593
Attributable to:
Shareholders of the parent20,883 20,121 53,460
Minority interest(372)(17)133
Total comprehensive income20,511 20,104 53,593
Attributable to:
Total comprehensive income from continuing operations21,292 21,709 55,521
Total comprehensive income from discontinued operations(781)(1,605)(1,928)
Total comprehensive income20,511 20,104 53,593
Total comprehensive income from continuing operations attributable to:
Shareholders of the parent
21,664 21,726 55,388
Minority interest(372)(17)133
Total comprehensive income21,292 21,709 55,521
2

Consolidated Statement of Changes in Equity
Foreign Employee
Currency Share
Share Treasury Hedge Translation Benefits Retained Minority Total
(Unaudited)
Note
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 26 weeks ended 26 January 2020
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
365,517 (5,456)(1,230)14 - 122,469 719 482,033
Adjustment on adoption of NZ IFRS 16
17
- - - - - (109,972)(38)(110,010)
Restated balance at the beginning of the period365,517 (5,456)(1,230)14 - 12,497 681 372,023
Profit for the half year- - - - - 29,155 (372)28,783
Movement in foreign currency translation reserve- - - (28)- - - (28)
Movement in derivative cash flow hedges- - (11,614)- - - - (11,614)
Movement in de-designated hedges- - 164 - - - - 164
Tax related to movement in hedge reserve- - 3,206 - - - - 3,206
Total comprehensive income- - (8,244)(28)- 29,155 (372)20,511
Share rights charged to the income statement- - - - - - 229 229
Dividends paid- - - - - (27,747)(81)(27,828)
Treasury stock dividends received- - - - - 115 - 115
Balance at the end of the period365,517 (5,456)(9,474)(14)- 14,020 457 365,050
Foreign Employee
Currency Share
Share Treasury Hedge Translation Benefits Retained Minority Total
(Unaudited)
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 26 weeks ended 27 January 2019
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
365,517 (6,060)10,711 (5)766 108,476 879 480,284
Adjustment on adoption of NZ IFRS 15- - - - - (275)- (275)
Restated balance at the beginning of the period365,517 (6,060)10,711 (5)766 108,201 879 480,009
Profit for the half year- - - - - 35,825 (17)35,808
Movement in foreign currency translation reserve- - - (39)- - - (39)
Movement in derivative cash flow hedges- - (22,060)- - - - (22,060)
Movement in de-designated hedges- - 303 - - - - 303
Tax related to movement in hedge reserve- - 6,092 - - - - 6,092
Total comprehensive income- - (15,665)(39)- 35,825 (17)20,104
Share rights charged to the income statement- - - - 63 - - 63
Share rights exercised- 604 - - (829)225 - -
Dividends paid- - - - - (20,811)(106)(20,917)
Treasury stock dividends received- - - - - 87 - 87
Balance at the end of the period365,517 (5,456)(4,954)(44)- 123,527 756 479,346
Foreign Employee
Currency Share
Share Treasury Hedge Translation Benefits Retained Minority Total
(Audited)
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 52 weeks ended 28 July 2019
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
365,517 (6,060)10,711 (5)766 108,476 879 480,284
Adjustment on adoption of NZ IFRS 15- - - - - (275)- (275)
Restated balance at the beginning of the period365,517 (6,060)10,711 (5)766 108,201 879 480,009
Profit for the year- - - - - 65,382 133 65,515
Movement in foreign currency translation reserve- - - 19 - - - 19
Movement in derivative cash flow hedges- - (17,165)- - - - (17,165)
Movement in de-designated hedges- - 580 - - - - 580
Tax related to movement in hedge reserve- - 4,644 - - - - 4,644
Total comprehensive income- - (11,941)19 - 65,382 133 53,593
Contributions by and distributions to owners:-
Share rights charged to the income statement- - - - 63 - 357 420
Share rights exercised- 604 - - (829)696 (471)-
Dividends paid- - - - - (52,027)(179)(52,206)
Treasury stock dividends received- - - - - 217 - 217
Balance at the end of the period365,517 (5,456)(1,230)14 - 122,469 719 482,033
Balance at the beginning of the period as
previously reported
Balance at the beginning of the period as
previously reported
Balance at the beginning of the period as
previously reported
3

Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
26 January 27 January 28 July
Note
2020 2019 2019
ASSETS
$ 000 $ 000 $ 000
Current assets
Cash and cash equivalents
11
56,690 24,758 49,297
Trade and other receivables
6
99,766 88,331 90,670
Inventories581,347 542,771 517,758
Derivative financial instruments
12
2,886 4,470 7,948
Taxation receivable- 3,856 -
740,689 664,186 665,673
Assets held for sale- 4,641 -
Total current assets740,689 668,827 665,673
Non-current assets
Property, plant and equipment
9
212,700 229,264 221,161
Right of use assets
15
813,986 - -
Intangible assets
10
133,963 118,899 125,512
Derivative financial instruments
12
- 786 -
Deferred taxation87,957 41,295 38,475
Total non-current assets1,248,606 390,244 385,148
Total assets1,989,295 1,059,071 1,050,821
LIABILITIES
Current liabilities
Borrowings
11
125,262 37,700 125,465
Trade and other payables
7
440,586 308,965 352,575
Derivative financial instruments
12
8,323 5,979 939
Taxation payable1,374 - 713
Lease liabilities
15
92,350 - -
Provisions
8
51,161 58,167 60,771
719,056 410,811 540,463
Other liabilities directly associated with assets held for sale- 1,283 -
Total current liabilities719,056 412,094 540,463
Non-current liabilities
Borrowings
11
- 140,177 -
Derivative financial instruments
12
6,866 4,850 7,055
Lease liabilities
15
877,275 - -
Provisions
8
21,048 22,604 21,270
Total non-current liabilities905,189 167,631 28,325
Total liabilities1,624,245 579,725 568,788
Net assets365,050 479,346 482,033
EQUITY
Contributed equity
360,061 360,061 360,061
Reserves(9,488)(4,998)(1,216)
Retained earnings14,020 123,527 122,469
Total equity attributable to shareholders364,593 478,590 481,314
Minority interest457 756 719
Total equity365,050 479,346 482,033
Net assets per share105.7 cents 138.8 cents 139.6 cents
4

Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
26 January 27 January 28 July
Note
2020 2019 2019
Cash flows from operating activities
$ 000 $ 000 $ 000
Cash received from customers1,672,262 1,639,654 3,083,748
Payments to suppliers and employees(1,532,918)(1,558,695)(2,853,781)
Income tax paid(14,806)(21,096)(26,540)
Interest paid on leases(20,369)- -
Other interest paid(3,127)(4,959)(8,657)
101,042 54,904 194,770
Loans repaid by finance business customers- 22,140 26,417
New loans to finance business customers- (17,047)(23,194)
Net cash flows from operating activities101,042 59,997 197,993
Cash flows from investing activities
Proceeds from sale of property, plant and equipment11,817 40 1,860
Proceeds from sale of finance business receivables- - 1,850
Purchase of property, plant, equipment and software(30,594)(28,187)(61,326)
Business disposal warranty claim- (1,421)(1,421)
Net cash flows from investing activities(18,777)(29,568)(59,037)
Cash flows from financing activities
Proceeds from / (Repayment) bank borrowings- (11,103)(63,715)
Lease principal repayments(47,023)- -
Treasury stock dividends received 115 87 217
Dividends paid to parent shareholders(27,883)(20,926)(52,302)
Dividends paid to minority shareholders(81)(106)(179)
Other items- (78)(135)
Net cash flows from financing activities(74,872)(32,126)(116,114)
Net cash flow7,393 (1,697)22,842
Opening cash position49,297 26,455 26,455
Closing cash position56,690 24,758 49,297
Reconciliation of Operating Cash Flows
Profit after tax28,783 35,808 65,515
Non-cash items
Depreciation and amortisation expenses
3
75,986 30,318 60,613
Gain on early lease terminations(151)- -
Intangible asset impairment
10
- - 5,478
Share based payment expense229 63 420
Interest capitalisation217 224 446
Movement in deferred tax(3,451)3,407 4,857
Other items118 122 418
Total non-cash items72,948 34,134 72,232
Items classified as investing or financing activities
Net loss/(gain) on disposal of property, plant and equipment290 1,374 (10,392)
Gain on sale of finance recievables- - (398)
Supplementary dividend tax credit136 115 275
Total investing and financing adjustments426 1,489 (10,515)
Changes in assets and liabilities
Trade and other receivables(20,146)(8,575)268
Finance business receivables- 4,388 5,929
Inventories(63,589)(18,931)6,082
Trade and other payables91,791 29,584 70,785
Provisions(9,833)(7,656)(6,628)
Income tax662 (10,244)(5,675)
Total changes in assets and liabilities(1,115)(11,434)70,761
Net cash flows from operating activities101,042 59,997 197,993
5

Notes to the Financial Statements
1. GENERAL INFORMATION
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SEGMENT INFORMATION
The interim financial statements of the Group have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ
GAAP). They comply with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and consequently, do not include all the
information required for full financial statements. These Group interim financial statements should be read in conjunction with the annual report for
the 52 weeks ended 28 July 2019.
These financial statements have been prepared under the historical cost convention except for the revaluation of certain financial instruments
(including derivative instruments). The reporting currency used in the preparation of the financial statements is New Zealand dollars, rounded to the
nearest thousands unless otherwise stated. Certain comparative amounts have been reclassified to conform with the current period presentation.
Accounting standards
Except for the adoption of the new lease accounting standard (NZIFRS 16 detailed in notes 15 to 18), the accounting policies that materially affect
the measurement of the interim financial statements have been applied on a consistent basis with those used in the audited financial statements for
the 52 weeks ended 28 July 2019 and the unaudited interim financial statements for the 26 weeks ended 27 January 2019.
Critical accounting judgements, estimates and assumptions
The preparation of the interim financial statements requires the Group to make judgements, estimates and assumptions that effect the reported
amounts of assets and liabilities at balance date and the reported amounts of revenues and expenses during the half year. The same significant
judgements, estimates and assumptions including those connected with the application of NZIFRS 16 (refer notes 15 to 18) that are summarised in
the audited financial statements for the 52 weeks ended 28 July 2019 were applied in the preparation of these interim financial statements.
Seasonality
The Group's revenue and profitability follow a seasonal pattern with higher sales and operating profits typically achieved in the first half of the
financial year as a result of additional sales generated during the Christmas trading period.
Approval of Financial Statements
These consolidated interim financial statements were approved for issue by the Board of Directors on 16 March 2020. Unless as otherwise stated,
the financial statements have been reviewed by our Auditors, but are not audited.
The Warehouse Group Limited (the Company) and its subsidiaries (together the Group) trade in the New Zealand retail sector. The Company is a
limited liability company incorporated and domiciled in New Zealand. The Group is registered under the Companies Act 1993 and is an FMC
Reporting Entity under Part 7 of the Financial Markets Conduct Act (FMCA) 2013. The address of its registered office is Level 4, 4 Graham Street,
PO Box 2219, Auckland. The Company is listed on the New Zealand Stock Exchange (NZX).
Operating segments
The Group has four operating segments trading in the New Zealand retail sector and a start-up venture to expand the Group's digital offering. These
segments form the basis of internal reporting used by management and the Board of Directors to monitor and assess performance and assist with
strategy decisions . The Group has disclosed its segment operating profit performance on a basis that excludes the impact of adopting NZIFRS 16
(refer notes 15 to 18). This presentation is consistent with the Groups internal reporting as the Group considers this provides a better base for
comparison with previous years.
Each of the four retail segments represent a distinct retail chain, synonymous with its segment name. Customers can purchase product from the
retail chains either on-line or through the Group’s physical retail store network. The Group’s store network currently has 92 The Warehouse stores ,
70 Warehouse Stationery stores, 76 Noel Leeming stores and 20 Torpedo7 stores. The Warehouse predominantly sells general merchandise and
apparel, Noel Leeming sell technology and appliance products, Torpedo7 sells sporting equipment and as the name indicates Warehouse
Stationery sells stationery.
Group support office functions, such as Information Systems, Finance, Brand Executives and People Support are operated using a shared services
model which allocates the costs of these support office functions to individual brands calculated on an arm’s length basis. The remaining support
office functions which relate to corporate and governance functions, a property company and the Group’s interest in a chocolate factory are not
allocated and form the main components of the “Other Group operations” segment.
6

Notes to the Financial Statements - continued
3. SEGMENT INFORMATION - (Continued)
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
26 January 27 January 28 July 26 January 27 January 28 July
Note
2020 2019 2019 2020 2019 2019
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
The Warehouse938,784 929,503 1,705,687 59,810 46,576 85,075
Warehouse Stationery 133,828 132,812 268,592 9,304 5,915 16,669
Warehouse Segment1,072,612 1,062,315 1,974,279 69,114 52,491 101,744
Noel Leeming 512,778 487,271 924,648 21,429 17,557 38,103
Torpedo798,418 89,929 172,474 (4,203)(1,786)(7,027)
Noel Leeming Segment611,196 577,200 1,097,122 17,226 15,771 31,076
TheMarket388 - - (7,687)(2,287)(5,996)
Other Group operations3,721 4,348 8,508 (10,757)(5,525)(14,446)
Inter-segment eliminations(4,524)(3,326)(8,552)
Retail Group1,683,393 1,640,537 3,071,357 67,896 60,450 112,378
Adjustments for NZIFRS 16
16
19,677 - -
Operating profit from continuing operations87,573 60,450 112,378
Unusual items
4
(21,918)(3,036)(9,435)
Earnings before interest and tax from continuing operations65,655 57,414 102,943
Operating margin
The Warehouse (%)
6.4 5.0 5.0
Warehouse Stationery (%)7.0 4.5 6.2
Noel Leeming (%)4.2 3.6 4.1
Torpedo7 (%)(4.3)(2.0)(4.1)
Total Retail Group (%)4.0 3.7 3.7
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
26 January 27 January 28 July 26 January 27 January 28 July
Note
2020 2019 2019 2020 2019 2019
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Warehouse segment22,056 23,321 46,310 22,328 21,107 47,753
Noel Leeming segment5,261 5,613 11,364 5,845 4,942 10,276
TheMarket852 511 1,200 1,550 1,292 3,641
Other Group operations725 873 1,739 219 107 433
Property, plant, equipment and software28,894 30,318 60,613 29,942 27,448 62,103
Right of use assets
15
47,092 - -
Total Group
9
75,986 30,318 60,613
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
As at As at As at As at As at As at
26 January 27 January 28 July 26 January 27 January 28 July
Note
2020 2019 2019 2020 2019 2019
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Warehouse segment582,274 541,723 536,464 373,577 240,168 302,333
Noel Leeming segment276,008 266,800 238,747 133,567 145,995 128,001
TheMarket7,981 5,167 6,906 3,070 904 1,940
Other Group operations86,012 89,237 97,483 2,581 3,952 2,342
Operating assets / liabilities952,275 902,927 879,600 512,795 391,019 434,616
Unallocated assets / liabilities
Cash and borrowings

56,690 24,758 49,297 125,262 177,877 125,465
Derivative financial instruments

2,886 5,256 7,948 15,189 10,829 7,994
Right of use assets / Lease liabilities
15
813,986 - - 969,625 - -
Intangible goodwill and brands

75,501 80,979 75,501 - - -
Taxation87,957 45,151 38,475 1,374 - 713
Total1,989,295 1,059,071 1,050,821 1,624,245 579,725 568,788
Operating performance
Capital expenditure and depreciation
Balance sheet information
REVENUEOPERATING PROFIT
DEPRECIATION & AMORTISATIONCAPITAL EXPENDITURE
TOTAL ASSETSTOTAL LIABILITIES
7

Notes to the Financial Statements - continued
4. ADJUSTED NET PROFIT
(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
26 January 27 January 28 July
Note
2020 2019 2019
$ 000 $ 000 $ 000
Adjusted net profit46,215 39,616 74,103
Add back: Unusual items
Gain on property disposal88 - 11,761
Brand impairment (Torpedo7)
10
- - (5,478)
Restructuring costs(22,006)(3,036)(15,718)
Unusual items(21,918)(3,036)(9,435)
Income tax relating to unusual items6,137 850 2,642
Unusual items after taxation(15,781)(2,186)(6,793)
Adjustments for NZIFRS 16
16
(498)- -
Net profit from continuing operations attributable to shareholders of the parent29,936 37,430 67,310
5. DIVIDENDS
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
26 January 27 January 28 July 26 January 27 January 28 July
2020 2019 2019 2020 2019 2019
$ 000 $ 000 $ 000
Prior year final dividend8.0 6.0 6.0 27,747 20,811 20,811
Interim dividend- - 9.0 - - 31,216
Total dividends paid8.0 6.0 15.0 27,747 20,811 52,027
CENTS PER SHAREDIVIDENDS PAID
Adjusted net profit reconciliation
Dividends paid
Certain transactions can make the comparison of profits between years difficult. The Group uses adjusted net profit as a key indicator of
performance and considers it a better measure of underlying business performance. The Group also uses it as the basis for determining dividend
payments. Adjusted net profit makes allowance for the after tax effect of unusual items which are not directly connected with the Group’s normal
trading activities. The Group defines unusual items as any gains or losses from the disposal of properties or investments, goodwill and brand
impairment, costs relating to business acquisitions or disposals and costs connected with restructuring the Group. Following the adoption of
NZIFRS 16 (refer note 15) the non-cash impact relating to the new lease accounting standard are treated as a component of adjusted net profit.
On 16 March 2020 the Board declared a fully imputed interim dividend of 10.0 cents per ordinary share to be paid on 17 April 2020 to all shareholders
on the Group's share register at the close of business on 2 April 2020. The declared dividend represents a payout ratio of 75.0% (January 2019:
78.8%; July 2020: 79.6%) of adjusted net profit (refer note: 4).
Restructuring Costs
In January 2017, the Group commenced a 3 year transformation program to change its business operating model, which included shifting The
Warehouse away from a ‘Hi-Lo’ pricing model to an ‘Every Day Low Price’ model. The changes have been designed to drive an improvement in
financial performance, reduce costs and generate greater customer relevance. The changes focused primarily on simplification to reduce
complexities, reduce working capital, drive efficiencies and increase business agility. This involved strengthening and consolidating the various Group
support service functions to drive synergy benefits. It also involved combining The Warehouse and Warehouse Stationery and similarly combining the
Noel Leeming and Torpedo7 Groups by integrating their operating structures and executive leadership teams.
The Group partnered with a management consultancy firm to assist with the transformation process and strategy implementation. In addition to a
retainer the Group recognised an expense for success fees payable to the management consultancy firm where they were involved in transformation
initiatives that achieved the expected outcomes. All the success fees which are payable have been recognised as an expense in respect of this phase
of the transformation program which concluded in January 2020.
8

Notes to the Financial Statements - continued
6. TRADE AND OTHER RECEIVABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Trade receivables55,860 45,760 42,335
Prepayments17,371 16,794 13,479
Property disposal proceeds- - 11,050
Rebate accruals and other debtors26,535 25,777 23,806
Total trade and other recievables99,766 88,331 90,670
7. TRADE AND OTHER PAYABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Local trade creditors and accruals224,905 237,317 211,132
Overseas trade creditors135,776 6,717 76,869
Goods in transit creditors31,469 28,264 20,508
Capital expenditure creditors1,989 1,124 2,641
Goods and services tax18,725 8,942 14,345
Reward schemes, lay-bys, Christmas club deposits and gift vouchers17,612 16,994 17,393
Interest accruals762 886 736
Payroll accruals9,348 8,721 8,951
Total trade and other payables440,586 308,965 352,575
8. PROVISIONS
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Current liabilities51,161 58,167 60,771
Non-current liabilities21,048 22,604 21,270
Total provisions72,209 80,771 82,041
Provisions consist of:
Employee entitlements
58,828 67,060 68,694
Make good provision7,832 7,907 7,722
Sales returns provision5,549 5,677 5,625
Onerous lease- 127 -
Total provisions72,209 80,771 82,041
Trade and Other Receivables
Trade and Other Payables
Provisions
Overseas trade creditors have increased significantly compared to the prior year as a result of the Group changing the payment terms to overseas
trade suppliers in November 2018. The Group had previously paid overseas trade suppliers upon the receipt of valid shipping documentation. The
new terms are consistent with commercial practice and defer the timing of payments to overseas trade suppliers by up to 120 days following the
receipt of the shipping documentation.
9

Notes to the Financial Statements - continued
9. PROPERTY, PLANT, EQUIPMENT AND COMPUTER SOFTWARE
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
Note
2020 2019 2019
$ 000 $ 000 $ 000
Assets held for sale- 1,516 -
Property, plant and equipment212,700 229,264 221,161
Computer software
10
58,462 37,920 50,011
Carrying amount271,162 268,700 271,172
Movement in property, plant, equipment and software
Carrying amount at the beginning of the period271,172 272,993 272,993
Capital expenditure
3
29,942 27,448 62,103
Depreciation and amortisation
3
(28,894)(30,318)(60,613)
Disposals(1,058)(1,423)(3,311)
Carrying amount at the end of the period271,162 268,700 271,172
10. INTANGIBLE ASSETS
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
Note
2020 2019 2019
$ 000 $ 000 $ 000
Computer software
9
58,462 37,920 50,011
Brands18,045 23,523 18,045
Goodwill57,456 57,456 57,456
Net book value133,963 118,899 125,512
Movement in Brands
Balance at the beginning of the period18,045 23,523 23,523
Brand impairment (Torpedo7)
4
- - (5,478)
Balance at the end of the period18,045 23,523 18,045
Intangible Assets
Property, Plant, Equipment and Computer Software
The Group performs a detailed impairment assessment of intangible assets prior to the end of each financial year and at each interim reporting date
considers if there are any indicators of impairment which could have a bearing on the impairment assessments. The Group’s interim review did not
identify any significant indicators of impairment in respect of the cash generating units connected with the Group’s material intangible assets.
10

Notes to the Financial Statements - continued
11. BORROWINGS
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Cash on hand and at bank56,690 24,758 49,297
Bank borrowings- 37,612 -
Pre NZIFRS 16 finance leases- 88 50
Fixed rate senior bond (coupon: 5.30%)125,000 - 125,000
Fair value adjustment relating to effective interest429 - 799
Unamortised capitalised costs on senior bond(167)- (384)
Current bank borrowings125,262 37,700 125,465
Bank borrowings- 15,000 -
Pre NZIFRS 16 finance leases- 16 -
Fixed rate senior bond (coupon: 5.30%)- 125,000 -
Fair value adjustment relating to effective interest- 763 -
Unamortised capitalised costs on senior bond- (602)-
Non-current borrowings- 140,177 -
Total borrowings125,262 177,877 125,465
Net debt68,572 153,119 76,168
Committed bank credit facilities at balance date are:
Bank debt facilities180,000 200,000 180,000
Bank facilities used- (52,612)-
Unused bank debt facilities180,000 147,388 180,000
Letter of credit facilities23,000 28,000 28,000
Letters of credit(1,194)(1,711)(2,467)
Unused letter of credit facilities21,806 26,289 25,533
Total unused bank facilities201,806 173,677 205,533
12. DERIVATIVE FINANCIAL INSTRUMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Current assets2,886 4,470 7,948
Non-current assets- 786 -
Current liabilities(8,323)(5,979)(939)
Non-current liabilities(6,866)(4,850)(7,055)
Total derivative financial instruments(12,303)(5,573)(46)
Derivative financial instruments consist of:
Current assets2,319 4,470 7,071
Current liabilities(8,323)(5,979)(939)
Foreign exchange contracts(6,004)(1,509)6,132
Current assets567 - -
Non-current assets- 786 877
Non-current liabilities(6,866)(4,850)(7,055)
Interest rate swaps(6,299)(4,064)(6,178)
Total derivative financial instruments(12,303)(5,573)(46)
US Dollar forward contracts
Notional amount (NZ$000)401,452 320,991 373,386
Average contract rate ($)0.6523 0.6833 0.6759
Spot rate used to determine fair value ($)0.6611 0.6846 0.6631
Forecast next twelve month USD hedge level (percentage)67.2 64.9 64.8
Derivative Financial Instruments
Net debt
The Group continues to manage its foreign exchange and interest rate risks in accordance with the policies and parameters detailed in the July 2019
Annual Report.
The Group’s foreign exchange contracts hedge forecast inventory purchases priced in US dollars over the next 12 months. The following table lists
the key inputs used to determine the fair value of the Group's foreign exchange contracts and hedge levels at balance date.
The Group issued a 5 year fixed rate senior bond on the New Zealand stock exchange (NZX) in June 2015 with interest payable every six months (15
June and 15 December) based on a 5.30% coupon. The bond is classified as a current liability as it matures in June 2020 which is less than 12
months following balance date. The Group values access to diverse capital sources and is currently assessing options regarding the issue of a new
bond on the NZX. If the timing of a reissuance is impacted by issues associated with the coronavirus (COVID-19), the Group has enough bank
facilities to repay the bond.
11

Notes to the Financial Statements - continued
13. FAIR VALUE MEASUREMENT
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
Note
2020 2019 2019
Derivatives used for hedging
$ 000 $ 000 $ 000
Foreign exchange contracts(Level 2)
12
(6,004)(1,509)6,132
Interest rate swaps(Level 2)
12
(6,299)(4,064)(6,178)
Senior bond fair value adjustment relating to effective interest(Level 2)
11
(429)(763)(799)
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
Face value ($000)125,000 125,000 125,000
Coupon (%)5.30 5.30 5.30
Market yield (%)2.75 3.75 2.90
MaturityJune 2020 June 2020 June 2020
NZX quoted closing price ($)

1.01586 1.02711 1.02712
Fair value ($000)126,983 128,389 128,390
14. DISCONTINUED OPERATIONS
(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
26 January 27 January 28 July
2020 2019 2019
$ 000 $ 000 $ 000
Finance business revenue38 599 1,262
Expenses(1,144)(2,815)(4,383)
Gain on sale of finance recievables- - 398
Loss before interest and tax(1,106)(2,216)(2,723)
Interest expense21 (14)9
Loss before tax(1,085)(2,230)(2,714)
Income tax benefit304 625 786
Loss from discontinued operations(781)(1,605)(1,928)
Cash flows from discontinued operations
Net cash flows from operating activities
(750)966 2,461
Net cash flows from investing activities- (1,423)429
Net cash flows from financing activities679 542 (3,327)
Asset / (Liability)
Fixed Rate Senior Bond
Financial Services Group results and cash flows
The following table sets out the Group’s financial instruments that are measured subsequent to initial recognition at fair values and are grouped into
levels based on the degree to which the fair value is observable:
Level 1 - fair value measurements derived from quoted prices in active markets for identical assets.
Level 2 - fair value measurements derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3 - fair value measurements derived from valuation techniques that include inputs for the asset or liability that are not based on observable
market data.
There has been no transfers between levels or changes in the valuation methods used to determine the fair value of the Group’s financial instruments
during the current and comparative periods. Sensitivities to reasonably possible changes in non-market observable valuation inputs would not have a
material impact on the Group’s financial results.
Specific valuation techniques used to value financial instruments are:
• Forward exchange contracts determined using forward exchange market rates at the balance date (refer note 12).
• Interest rate swaps calculated as the present value of the estimated future cash flows based on the applicable market interest yield rates at balance
date.
Except for the Group’s fixed rate senior bond (refer note 11) and derivatives (detailed above) the carrying value of the Group’s financial assets and
liabilities approximate fair value. The fixed rate senior bond is listed on the NZX and measured at amortised cost. The fair value of fixed rate senior
bonds at balance date, based on the last price traded on the New Zealand stock exchange (level 1 valuation), were as follows.
The Group sold its Financial Services business (excluding Diners Club (NZ)) in September 2017. The Diners Club (NZ) business was divided
between the merchant acquisition business and the card issuance operations. The finance receivables associated with the card issuance operations
were sold in April 2019. The remaining Diners Club (NZ) merchant acquisition business was part of a network participation agreement (NPA) with
Diners Club International and the Groups obligations under this agreement ceased in December 2019. The Group has committed to extending
reduced franchise services for three months beyond the expiry of the NPA to assist with merchant transition, on the basis that the extension of these
services generate a positive commercial return.
The results and cash flows from the Financial Services Group are as follows.
12

Notes to the Financial Statements - continued
15. LEASE LIABILITIES AND RIGHT OF USE ASSETS
(Unaudited)(Unaudited)(Unaudited)
Accumulated Carrying
Cost Depreciation
Amount
For the 26 weeks ended 26 January 2020
$ 000 $ 000 $ 000
Carrying amount at transition1,510,584 (676,093)834,491
Additions31,971 - 31,971
Depreciation- (47,092)(47,092)
Lease terminations(15,543)10,159 (5,384)
Carrying amount at the end of the period1,527,012 (713,026)813,986
(Unaudited)
Carrying
Amount
As at 28 July 2019
$ 000
Operating lease commitment disclosed at 28 July 2019661,508
Adjustments as a result of different treatment of extension and termination options601,863
Calculation refinements1,896
The above adjustments discounted at the Group's incremental borrowing rate at transition(275,054)
Carrying amount at transition990,213
Additions31,971
Interest for the period20,369
Lease repayments(67,393)
Early lease terminations(5,535)
Carrying amount at the end of the period969,625
(Unaudited)(Unaudited)(Unaudited)
Gross LeaseCarrying
PaymentsInterest
Amount
$ 000 $ 000 $ 000
Within one year131,872 (39,522)92,350
One to two years127,633 (35,321)92,312
Two to five years346,351 (84,666)261,685
Beyond five years622,807 (99,529)523,278
Total1,228,663 (259,038)969,625
Current lease liability92,350
Non-current lease liability877,275
Total969,625
Right of use assets
Lease liabilities
Lease liability maturity analysis
The early lease terminations are largely due to the Group replacing a number of the motor vehicle fleet leases since July 2019 in a move to shift away
from petrol to electric powered motor vehicles.
The table below details the movements in the lease liabilities for the period following the adoption of NZIFRS 16 through to current balance date and
provides a reconciliation between the liabilities recognised at transition with the lease commitments (calculated in accordance with NZIAS 17)
disclosed in the July 2019 annual report.
The Group adopted NZIFRS 16 ‘Leases’, which replaced the previous guidance in NZIAS 17 for lease accounting in the current reporting period. On
adoption of NZIFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under
NZIAS 17. These liabilities were measured at the present value of the remaining lease payments, discounted using the Group’s incremental
borrowing rate at the date of transition (28 July 2019). The Group’s weighted average incremental borrowing rate applied to the lease liabilities on
transition was 4.23%.
The Group used the ‘modified retrospective approach’ for its transition which does not permit the Group to restate comparative amounts for the
periods prior to adoption. This transition approach allowed the Group to use hindsight to determine the commencement date of leases by removing
the requirement to retrospectively asses the likelihood that options to extend or terminate leases would be exercised. There was also an optional
exemption to exclude short term leases and leases of low value assets which the Group elected to apply. The reclassifications and the adjustments
arising from the new leasing rules and recognised in the opening balance sheet on 28 July 2019 are detailed in note 17.
The table below details the movements in the 'right-of-use' assets for the period following the adoption of NZIFRS 16 through to current balance date.
New accounting policy
A ‘lease liability and a corresponding ‘right of use’ asset is recognised when the Group commences a lease with a term exceeding 12 months and has
sufficient value not to be characterised as a low value lease. The initial lease liability and corresponding ‘right of use’ asset represents the present
value of future lease payments discounted using the Groups incremental borrowing rate over the lease term including any contractual lease extension
options considered reasonably certain to be exercised. The future lease payments adjust for contractual fixed rate lease payment adjustments but no
adjustment is made for inflation indexed lease payment increases.
Lease payments are allocated between the lease liability and the finance cost. The finance cost is charged to the income statement over the lease
period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right of use asset is depreciated
over the shorter of the asset’s useful life and the lease term on a straight line basis.
13

Notes to the Financial Statements - continued
16. IMPACT OF NZIFRS 16 ON THE INCOME STATEMENT
(Unaudited)(Unaudited)(Unaudited)
NZIFRS 16 Adjustments Pre NZIFRS 16
$ 000 $ 000 $ 000
Continuing operations
Retail sales
1,683,393 - 1,683,393
Cost of retail goods sold(1,117,340)- (1,117,340)
Gross profit566,053 - 566,053
Other income4,892 - 4,892
Employee expenses(286,193)- (286,193)
Depreciation and amortisation expenses(75,986)47,092 (28,894)
Other operating expenses(121,193)(66,769)(187,962)
Operating profit from continuing operations87,573 (19,677)67,896
Unusual items(21,918)- (21,918)
Earnings before interest and tax from continuing operations65,655 (19,677)45,978
Net interest expense(23,681)20,369 (3,312)
Profit before tax from continuing operations41,974 692 42,666
Income tax expense(12,410)(194)(12,604)
Net profit for the period from continuing operations29,564 498 30,062
17. IMPACT OF NZIFRS 16 ON THE BALANCE SHEET
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Unaudited)
NZIFRS 16 Adjustments Pre NZIFRS 16 NZIFRS 16 Adjustments Pre NZIFRS 16
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Right of use assets834,491 (834,491)- 813,986 (813,986)-
Deferred taxation81,257 (42,782)38,475 87,957 (42,976)44,981
All other assets1,012,346 - 1,012,346 1,087,352 - 1,087,352
Total assets1,928,094 (877,273)1,050,821 1,989,295 (856,962)1,132,333
Trade and other payables349,695 2,880 352,575 440,586 2,155 442,741
Lease liabilities990,213 (990,213)- 969,625 (969,625)-
Borrowings125,415 50 125,465 125,262 - 125,262
All other liabilities90,748 - 90,748 88,772 - 88,772
Total liabilities1,556,071 (987,283)568,788 1,624,245 (967,470)656,775
Net assets372,023 110,010 482,033 365,050 110,508 475,558
18. IMPACT OF NZIFRS 16 ON THE STATEMENT OF CASH FLOWS
(Unaudited)(Unaudited)(Unaudited)
NZIFRS 16 Adjustments Pre NZIFRS 16
$ 000 $ 000 $ 000
Payments to suppliers and employees(1,532,918)(67,392)(1,600,310)
Interest paid on leases(20,369)20,369 -
All other operating cash flows1,654,329 - 1,654,329
Net cash flows from operating activities101,042 (47,023)54,019
Net cash flows from investing activities(18,777)- (18,777)
Lease principal repayments(47,023)47,023 -
All other financing cash flows(27,849)- (27,849)
Net cash flows from financing activities(74,872)47,023 (27,849)
Net cash flow7,393 - 7,393
FOR THE 26 WEEKS ENDED 26 JANUARY 2020
FOR THE 26 WEEKS ENDED 26 JANUARY 2020
Abbreviated Statement of Cash Flows
Consolidated Income Statement
Abbreviated Balance Sheet
AS AT TRANSITION 28 JULY 2019AS AT 26 JANUARY 2020
The following table details the balance sheet reclassifications and adjustments arising from adopting the new leasing rules recognised both at the end
of the current period and in the transition balance sheet.
In addition to recognising the new ‘right of use’ assets and related ‘lease liabilities’ adjustments were made to recognise the effect of deferred taxation
on these adjustments and to ‘trade and other payables’ to remove operating lease incentives and accruals calculated in accordance with NZIAS 17.
The following table details the adjustments to the income statement as a result of the adopttion of NZIFRS 16.
The impact of NZIFRS 16 on the income statement decreases operating expenses by removing the lease expense previously calculated in
accordance with NZIAS 17, increasing the depreciation expense for the depreciation on the new ‘right-of-use’ assets and increasing the interest
expense for the interest element connected with repayment of the new lease liabilities.
The following table details the cash flow statement reclassifications in the current reporting period as a result of the adoption of NZIFRS 16 which
reclassify lease repayments between the principal and interest components.
14

Notes to the Financial Statements - continued
19. COMMITMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
26 January 27 January 28 July
2020 2019 2019
Capital commitments
$ 000 $ 000 $ 000
Within one year2,542 1,021 1,452
20. RELATED PARTIES
21. CONTINGENT LIABILITIES
22. IMPACT OF CORONAVIRUS
Commitments
Capital expenditure contracted for at balance date but not recognised as liabilities is
set out below:
The Group has no material contingent liabilities other than those arising in the normal course of business, being primarily letters of credit issued
to secure future purchasing requirements and store lease commitments.
Except for Directors' fees, key executive remuneration and dividends paid by the Group to its Directors, there have been no other related party
transactions during the period.
The coronavirus "outbreak" (COVID-19) was declared a public health emergency and later declared a pandemic by the World Health
Organisation on 30 January 2020 and 11 March 2020, respectively. Both declarations were made after the Group’s period end balance
date. Given the developing nature of the virus and downstream consequences it is too early to determine the impact this virus may have on
the Group. On 26 February a trading update was provided on the impact of COVID-19 on the Group operations, stating that the Group did not
expect there to be a material impact on the full year financial results. We continue to actively monitor the situation and recognise the impact of
COVID-19 on the Group could manifest through three areas, our team members, supply chain and customer demand. The Group has
mitigation plans which will be assessed and implemented as the situation develops however should this pandemic continue for a prolonged
period of time it may have a material adverse financial impact.
15

---

Name of issuer THE WAREHOUSE GROUP LIMITED
Financial product description Ordinary Shares (346,843,120)
NZX ticker code WHS
ISIN NZWHSE0001S6
Type of distribution Full Year Quarterly
(please mark with an X in the relevant box/es) Half Year
X
Special
DRP Applies Not Applicable
Record date 02 April 2020
Ex-Date (one business day before the record date) 01 April 2020
Payment date 17 April 2020
Total monies associated with the distribution $34,684,312
Source of distribution Operating cashflows
Currency New Zealand dollars
Gross distribution $0.13888889
Gross taxable amount $0.13888889
Total cash distribution $0.10000000
Excluded amount $0.00000000
Supplementary distribution amount $0.01764706
Is this distribution imputed? Fully imputed
Partial imputation
No imputation
28%
$0.03888889
$0.00694444
Date of release through MAP
The Warehouse Group Limited
Corporate Action Notice (for a Distribution)
Name of person authorised to
make this announcement
Jonathan Oram (Group Chief Financial Officer)
Contact phone number 09 217 7651
Imputation tax credits per financial product
Authority for this announcement
Contact person for this announcement Jonathan Oram (Group Chief Financial Officer)
Contact email address Jonathan.Oram@thewarehouse.co.nz
17 March 2020
Issuer Information
Distribution amounts per financial product
Imputation credits and residnet withholding tax
Resident withholding tax amount per financial product
If fully or partially imputed, please state imputation
rate as % applied

---

Quarterly Sales
Reporting Period 26 weeks to 26 January 2020
Previous Reporting Period 26 weeks to 27 January 2019
Quarterly Retail Sales information:
SalesSales
(29 July 2019 to 27 October 2019)
20202019
($ Million)($ Million)
The Warehouse 368.9 360.1 + 2.4 % + 3.1 %
Warehouse Stationery63.0 61.7 + 2.1 % + 0.6 %
Noel Leeming225.0 209.6 + 7.3 % + 6.1 %
Torpedo738.1 37.0 + 3.0 % - 0.6 %
SalesSales
(28 October 2019 to 26 January 2020)
20202019
($ Million)($ Million)
The Warehouse 569.9 569.4 + 0.1 % + 0.8 %
Warehouse Stationery70.8 71.1 - 0.4 % - 2.8 %
Noel Leeming287.8 277.7 + 3.6 % + 1.4 %
Torpedo760.3 52.9 + 14.0 % + 12.4 %
SalesSales
(29 July 2019 to 26 January 2020)
20202019
($ Million)($ Million)
The Warehouse 938.8 929.5 + 1.0 % + 1.6 %
Warehouse Stationery133.8 132.8 + 0.8 % - 1.2 %
Noel Leeming512.8 487.3 + 5.2 % + 3.4 %
Torpedo798.4 89.9 + 9.4 % + 7.1 %
Store Numbers
20202019202020192020201920202019
Start Quarter 2929377 77 70 70 19 18
End Quarter 2929376 77 70 70 20 18
20202019202020192020201920202019
Start Quarter 2500,342 504,602 80,254 80,273 69,976 71,376 25,676 26,186
End Quarter 2499,756 504,602 79,790 80,273 69,865 71,376 26,489 26,186
- - - 1
- 1 - -
- - 1 -
1 - - -
First quarter sales
Change in
sales
Change in
same store
sales
Year to date sales
Change in
sales
Change in
same store
sales
Second quarter sales
Change in
sales
Change in
same store
sales
Noel LeemingWarehouse StationeryTorpedo7The Warehouse
Store
closure
Store
extension/
reduction
The Warehouse
Warehouse Stationery
Warehouse StationeryTorpedo7Noel Leeming
Store footprint
(Square Metres)
The Warehouse Group Limited
Supplementary Information
The Warehouse
Noel Leeming
Torpedo7
Store changes during the quarter
New
store
Replacement
store