The Chairman and Group MD’s address at the AGM

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CHAIRMANS ADDRESS TO SHAREHOLDERS ON 9 DECEMBER 2020
RESULTS FOR FULL YEAR ENDED 1 AUGUST 2020

The Group sales for the 12 months to 1 August 2020 were $287.76 million which were +0.1% up on the
prior year ($287.55 million).
The audited net profit after tax for the 12 months was $27.77 million, a decrease of 4.29% on the prior
corresponding period ($29.02 million).
Group sales were maintained in an extremely challenging environment, particularly in the second half
when the COVID-19 outbreak occurred around the world. During the last six months of the financial year
stores in both New Zealand and Australia were closed on 26 March with New Zealand stores reopening
on 14 May and Australian stores reopening during May. However, online sales from April 2020 onwards
increased markedly in both New Zealand and Australia. The web shops in New Zealand for both brands
were closed from 26 March 2020 but did reopen to sell essential products from 4 April and then all
product from 27

April onwards. The COVID-19 closedowns were obviously very disruptive and costly to
our business, both in New Zealand and Australia.
The Gross Margin was affected by a number of issues throughout the financial year. These included
unfavourable exchange rates with the US Dollar in both New Zealand and Australia as well as continuing
challenges with suppliers closing for periods, shipping delays and increased freight costs resulting from
the impact of COVID-19. Over the financial period, costs were well controlled with additional controls
implemented post the COVID-19 lockdowns to further reduce operating costs. These include qualifying
and claiming for the Government wage subsidies, extending supplier terms where appropriate, placing
capital projects on hold, and negotiating rent relief with landlords. The Group appreciated the
Government wage subsidies as the Companies were able to pay their staff and avoid any
redundancies during the lockdown period at a time when our stores were closed both in New Zealand
and Australia. The Directors, Executives and support office staff also took short term reductions to their
fees, salaries, and wages.
The Group also worked hard to take steps to preserve liquidity, particularly reviewing supplier trading
terms and managing stock levels and costs across the business. The rental negotiations with landlords for
rent relief during the COVID-19 lockdown periods have made good progress, but some negotiations are
still ongoing.
Glassons – New Zealand & Australia
The Glassons New Zealand business performed very well in the year under review.
Sales in New Zealand for the year ended 1 August 2020 were $102.60 million, an increase of 1.86% on the
prior year. Net profit after tax earned by the company was $12.20 million compared to $11.36 million the
prior year.

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Over the last financial year the Glassons outlet store in Hornby, Christchurch was refurbished and the
Cuba Mall, Wellington store was moved to a new location in the Mall and fully refurbished. In July, the
store in Tauranga CBD was closed.
The Glassons Australia business also performed very strongly in 2020.
Sales in Australia for the financial year were $96.69 million which was an increase of 8.03% on the
corresponding period, a very pleasing outcome for Glassons Australia. Net profit after tax was $9.36
million, well up on the prior year of $8.07million.
During the year, a new store was opened in Robina on the Gold Coast, a pop-up site in Birkenhead Point,
Sydney was opened and the Eastgardens store in Sydney was increased in size and completely
refurbished. In the last 12 months stores in Chatswood and Hurstville, in Sydney, were closed. There are
currently further sites being reviewed for potential openings around Australia to further expand the
business.
Two new Glassons Fulfilment Centre’s were opened during the financial year. A new larger Fulfilment
Centre was opened in Hornby, Christchurch in October 2019 and the new Fulfilment Centre in Sydney
was opened in February 2020. These facilities were instrumental in supporting the significant growth in
online sales particularly through the COVID-19 affected trading periods in both New Zealand and
Australia. The old Glasson Fulfilment Centre, being no longer needed, was sold.
With the strong increase in online sales there has been significant investment in digital including
relaunching the website and the planned launch of an omni-channel Glassons app in October this year.
Hallenstein Brothers
Hallenstein Brothers had a difficult 2020, particularly in the second half with the outbreak of COVID-19.
Sales for the 12 month period were $88.48 million (including Australia), a decrease of 9.09% on the prior
period. Net profit after tax was $4.48 million for the year compared to $7.20 million the prior year.
As mentioned above sales for Hallenstein Brothers proved challenging in the second half of the year as
demand for Tailored product diminished with the impact of COVID-19 lockdowns with large numbers of
people working remotely from home and strict restrictions being enforced on any public gatherings.
However, sales results in our casual product categories were encouraging and have continued to perform
very well throughout the financial year.
In New Zealand, the Hallenstein Brothers outlet store in Hornby, Christchurch was refurbished in the last
12 months and the CBD store in Tauranga was closed.
E-Commerce
Online sales grew over the period by 46.87% against last year with an exceptional growth within the
second six months of the financial year of 80.10%, being particularly strong for Glassons Australia. Online
sales now represent 21.88% of total sales for the full financial year but represented 30.30% of the total
sales for the second half of the financial year. The growth in online sales has continued into the new
financial year being ahead of the same period last year.

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As mentioned previously, investment in our two new Glassons Fulfilment Centre’s has been very effective
in supporting the Group’s online sales growth. There will be continued investment in digital as we
continue to build on our online sales and focus on an omni-channel experience for our customers.
Dividend
The Directors have declared a final dividend of 24 cents per share (fully imputed) (24 cents per share last
year) to be paid on 15th December 2020. Together with the interim dividend of 15 cents per share that
was paid on 4 September 2020, the full year dividend is 39 cents per share. The final dividend payment is
able to be maintained as the Company’s balance sheet continues to be strong, and inventories well
controlled.
Future Outlook
Following the latest COVID-19 lockdown in Auckland, thirteen Hallenstein Brothers stores and twelve
Glassons stores were closed during August 2020 and the eleven Glassons stores in Victoria Australia were
also closed from July 2020 to November 2020 in line with Victorian State Government guidelines. All
these stores have now reopened and are trading again with a strong focus on the peak Christmas season.
Despite these latest store closure disruptions, the HGH group business continues to trade ahead of last
year.
The 18 weeks of the new financial year have seen Group sales grow +14.51% on the same period of the
prior year. This has been driven predominantly by strong online sales as physical store sales growth has
been harder to achieve, particularly in CBD locations. Challenges with offshore shipping delays and
increased freight costs continue. Whilst we have a strong start to the new summer season the Company
continues to be cautious in regard to the future impacts of COVID-19 on customer confidence and
spending patterns in the lead up to Christmas. The pre and post-Christmas trading periods are such key
trading periods for the Group in determining our trading result for the summer season, which ends on 1
February 2021.
In closing I would like to thank the Hallenstein Glassons Board, Executive Team and all our staff, for the
very good 2020 trading result. It was a tremendous effort by everyone in a very challenging and difficult
environment in both New Zealand and Australia.
We look forward to 2021, and the rollout around the world of the COVID-19 vaccine programs. Let’s hope
the vaccines are successful and produce the desired results.

Warren Bell
Chairman
9
th
December 2020

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Managing Directors Address – AGM 2020    
INTRODUCTION 
Thank you and a pleasure to be here today.  Well 2020 has proved to be quite the year, as we have 
had to navigate challenging conditions. Today I will outline from a Group perspective the financial 
year and provide a summary of our strategic initiatives.   
Firstly, I would like to acknowledge the support from all of our stakeholders.  Our key partners and 
shareholders has been pivotal in allowing us to navigate the challenges of the past 9 months.   
We are also grateful for the resilience and commitment shown by our people, who continually 
demonstrated agility and commitment to the business. We are very fortunate in the depth of talent 
throughout our businesses, and the dedication shown. 
 
THE FINANCIAL RESULT 
Overall, considering the challenges of the market that we have all endured, the 2020 financial year 
was a commendable result.  The ability of the team to adjust to the demands of the COVID 
environment was exceptional.We were well advanced on technology, having set up all team 
members, and trialing remote working protocols and team structures, it allowed us to refine prior to 
the formal lockdown being put in place.  Being prepared well in advance, not only from a technology 
perspective but operationally was important.  We learnt and refined many times overs before the 
actual lockdowns were enacted. 
 
CHALLENGES OF THE YEAR 
From the initial lockdown in China and impact on supply chain, to the various geographical 
lockdowns in New Zealand and Australia, impacting both physical retail and limitations on product 
offer online, the Company responded with agility and speed to maintain customer connectivity and 
optimise sales. 
The initial impact of COVID for the business was felt back in February, where we started to see 
significant issues with our supply base in China.  Our production teams responded, quickly juggling 
production and accelerating our diversification strategy.   
During the initial lockdown in NZ, we quickly gained approval to sell winter essentials online.  This 
was instrumental in keeping momentum in the business.  In AU we were able to continue to sell 
online throughout.  Online distribution was fundamental to maintain momentum in the business.   
Whilst we juggled various operational challenges, we kept at the forefront the importance of active 
and relevant engagement with our customers.  Innovative social media campaigns provided 
connectivity to our customers.  The GLASSONS ‘Keeping Connected’ Instagram series and for 

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Hallenstein Brothers the ‘Live in the Lounge’ were both unique ways of staying connected and 
relevant to our customer base.  
Our Design and Buying teams have also adjusted to the new norm of design and product creation.  
Previously our teams travelled extensively internationally; in response we have strengthened our 
design and buying talent in leading our fashion direction.   
 
SUPPLY CHAIN 
Both Hallensteins Brothers and Glassons have long standing supply arrangements.  We are grateful 
for the support shown by many of our suppliers through the lockdowns, which allowed us to 
effectively manage our stock levels.  There remains various external factors that continue to impact 
on supplier strategy and we have at the forefront the importance of maintaining a balance of 
suppliers in various geographic jurisdictions. 
We have also been working with our suppliers partnering on our sustainability journey as we 
increase transparency in our supply chain.  We are pleased about the release of our first full 
Sustainability Report – Made with Care.  As a Group we are committed to act more sustainably to 
make a positive impact on people and the environment.  We acknowledge we are very much on a 
journey, and the Made with Care report puts voice to our responsibility to bring affordable fashion 
to our customers ethically and sustainably.  
As Warren highlighted the investment in two new Fulfilment Centre’s:  Glassons New Zealand 
(Christchurch) and Glassons Australia (Sydney) have provided pivotal infrastructure to support the 
omni‐channel growth of the business.  In addition, our logistics partners have also provided ongoing 
support with the challenges of international freight. 
 
DIGITAL 
The strength of our digital execution proved pivotal as we entered lockdowns.  The enhanced focus 
not only with online retailing, but the brands ability to stay connected with our customers through 
online channels was impressive.   
A priority in the business remains our focus on digital and technology advancement.  Whether it is 
the release of the Glassons APP, advancement on website functionality, or improving efficiency in 
store, we embrace technology to optimise customer experience and ensure operational efficiency. 
Warren has highlighted the growth in the financial year with online, and we remain confident of this 
continuing. 
The areas which have been a focus for both Digital teams include: 
 Customer Relationship Management – the implementation of a new CRM system which is 
allowing greater sophistication on customer segments and understanding their 
communication profiles.   

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 Web‐site functionality – both Brands have embarked on further enhancement on the 
functionality and aesthetics of the respective websites.   
 Creative Content – the ability of the in‐house teams to develop creative content to support 
the Brands has been pivotal in context of travel restrictions.  The increasing demand for 
relevant and creative content across digital formats is driving innovative solutions. 
There are numerous projects underway for both Digital teams. 
 
RETAIL 
We are making good progress on landlord negotiations from the impact of COVID‐19. Moving 
forward we will continue to maintain a watching brief on the retail landscape and what will evolve.  
We are mindful that across retail precincts there will be variability on the future outlook, but also 
believe it may be an opportune time for select investment in key retail locations in Australia. 
 
HALLENSTEIN BROTHERS 
As highlighted last year, we are in the process of repositioning the Hallenstein Brothers brand, and 
so I will provide more specific commentary on status.  There has been a focus on fashionability and 
improving fabric quality for the Hallenstein Brothers brand– particularly across our core casual 
categories.  There is also a sustainability strategy underpinning product development, where we 
have seen the introduction of organic and recycled fabrications.  In improving product quality, we 
have been able to hold key price points to re‐enforce the strong value proposition of the brand.  This 
is resonating well with customers and we are particularly pleased in the growth of the causal 
categories. 
As can be appreciated the Tailored category was significantly impacted during the year, with 
uncertainty over events, particularly school balls and weddings.  However, the responsiveness of the 
rebound is stronger than we anticipated.  Many school balls continued, albeit on a later timeframe, 
and we are also currently experiencing increased demand for wedding attire. 
Over the past 12 months, there has also been additional resource and expertise in our Creative 
Content team.  Delivering inspirational creative content that is reinforcing our brand position across 
multiple channels.  The Hallenstein Brothers website has also been updated – with enhanced 
imagery and improved functionality. 
Within Hallenstein Brothers we also pride ourselves on the physical execution in store. With a 
talented and committed retail team, the physical store environment has continued to improve to 
provide an engaging and welcoming experience for our customers. 
One of the challenges of the year has been our Australian team working remotely.  With four stores 
in Queensland, they have been working remotely since March.  The leadership team is strong, and 

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we have continued to adjust to the continued lockdown restrictions in the market, we however, very 
much look forward to being able to visit the team and stores in person. 
 
TRADING OUTLOOK   
Finally, in summary the trading outlook. 
We are pleased with trading year to date.  However, in a market with constant challenges we remain 
forever cautious on the trading outlook.  One of the most significant issues currently is managing the 
constraints with inwards freight.  To adjust we have had to revert some product deliveries to 
airfreight.  Whilst this is the right decision for our business and customers, there will be some impact 
on gross margin. 
We will keep at the forefront of our strategic direction the importance of digital, with continued 
investment in technology and expertise.  It is important that we maintain the online trajectory and 
imbed an omni‐channel experience for our customers. 
The launch of our Sustainability Report was pivotal for us as a Company, and we remain conscious of 
the continued work required across the business to deliver to our Sustainability aspirations. 
We are particularly pleased with the growth for Glassons in Australia, and this remains a key growth 
opportunity for the business. 
We know that there will be challenges ahead, but the commitment of our people and ability to 
adapt will allow us to be responsive to the market.   
On a personal note, I would like to thank all stakeholders and our wonderful team for once again for 
their support of the business throughout the year.   
 
Mary Devine 
Group Managing Director