The Warehouse Group Annual Result 2021

Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 52 weeks to 1 August 2021
Previous Reporting Period 53 weeks to 2 August 2020
Currency New Zealand dollars
$3,414,601
$3,414,601
$117,651
$117,651
Final Dividend
Record Date 18 November 2021
Dividend Payment Date 03 December 2021
Contact phone number
Contact email address
Date of release through MAP
Audited financial statements accompany this announcement.
Revenue from continuing
operations
up 7.6 %
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change
Total Revenue up 7.6 %
Net profit/(loss) from
continuing operations
up 164.7 %
Total net profit/(loss) up 164.6 %
Amount per Quoted Equity
Security
$0.17500000
Imputed amount per
Quoted Equity Security
$0.06805556
Current periodPrior comparable period
Net tangible assets per
Quoted Equity Security
$0.818 (01 August 2021) $0.697 (02 August 2020)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The investor presentation and media release which accompany this
announcement, provide information and commentary to explain the financial
performance of the Group for the 52 week period ended 1 August 2021.
Jonathan.Oram@thewarehouse.co.nz
29 September 2021
Authority for this announcement
Name of person authorised to
make this announcement
Jonathan Oram (Group Chief Financial Officer)
Contact person for this
announcement
Jonathan Oram (Group Chief Financial Officer)
09 217 7651

---

The Warehouse Group
FY21 Annual Results
29 September 2021
We have
transformed
Helping Kiwis
live better
every day

CHAIR’S UPDATE3
Joan Withers
GROUP UPDATE8
Nick Grayston
GROUP FINANCIALS14
Jonathan Oram
DIVISIONAL PERFORMANCE24
Jonathan Oram
OUTLOOK30
Joan Withers
2

CHAIR’S

4
1.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Adjusted and Statutory NPAT is located on slide 19and in Note 5 of
the Financial Statements for the year ended 1 August 2021.2020 Adjusted NPAT was restated from $80.7 million to $32.1 million due to the Group repaying the Government COVID-19
wage subsidy in December 2020. This repayment resulted in the reclassification of the initial receipt of the subsidy in March2020 as an unusual item. This prior year reclassification has
the effect of reducing 'other income' and decreasing the 'unusual item' expense on the Income Statement by $67.6 million (beforetax) for the year ended 2 August 2020.
2.The Group held cash on hand of $160.5 million (2020: $168.1 million) at balance date, combined with available bank facilitiesof$330 million, providing liquidity of $490.5 million (2020:
$498.1 million).
•Group sales $3.4bn –up 7.6%
•Gross profit margin up from 32.6% to
36.4%
•Reported NPAT $117.7m –up from
$44.5m in prior year
•Adjusted NPAT $175.5m–up
from$32.1m in prior year
•Net cash on hand -$160.5 million
•Total Liquidity -$490.5 million
2
•Online sales -$393.1 million, up
5.0% on last year and making up 11.5% of
total Group Sales
•Click & Collect sales –up 21.1%
•Carried over 11,500 unique products
with a sustainable feature,
accounting for over $176 millionin sales
•We have diverted 77.9% of
operationalwaste from landfill (up
from 76.7% in FY20)
•Reduced Scope 1 and 2 emissions by
2.7% and reduced total emissions by
6.4% since FY19
•$4.3 millionraised for New Zealand
charities and communities
•Increased female senior leaders to
44.4% of senior leadership roles

Our People
•Four years ago, we would not have anticipated the record results we have achieved in this financial year.
•In FY21, we have made material progress to become an Agile business and operate effectively within a dynamic
environment. Agile is not an easy journey –and I want to give credit to all our people for having the bravery and
stamina to meet the challenge of such fundamental change.
•Our culture and mindset and our teams’ expertise have enabled the business to open and shut stores and move to
Click &Collect almost overnight during the first wave of COVID-19 alert level changes. And now again, as the country
reverted to Level 4 lockdown and then into a split level environment across New Zealand.
•I would like to thank all our team members who have adapted and pivoted to these changes and have enabled the
Group to provide our customers’ needs and wants, when we can, in and out of lockdown periods.
•Our team have truly lived our values by putting customers first, doing good for our people and planet, and delivering
on what we said we would do.
5
UPDATE

6
FY21 Results
•Given the turbulence of the past year, we are pleased to report a record result with total retail sales of $3.4 billion, up
7.6% on FY20.
•Gross profit margin has increased from 32.6% to 36.4% and operating profit
(1)
margin has risen from 1.6% to 7.0%.
•Our reported NPAT of $117.7 million and adjusted net profit after tax
(2)
of $175.5 million is a record for The Warehouse
Group.
•Strong operational performance, sustained sales momentum and a robust financial position enabled the Group to
repay the COVID-19 wage subsidy of $67.6 million for our 11,000 employees in December 2020.
Dividends
•Our stronger than expected trading performance enabled the Board to declare a special dividend of 5.0 cents per
share in February 2021, and an interim dividend of 13.0 cents per share in April 2021.
•The Board is pleased to announce a fully imputed final dividend of 17.5 cents per share.The final dividend has been
declared on the assumption that New Zealand is predominantly at Level 2 from the end of October. The record date
for the dividend will be 18 November 2021 and will be paid on 3 December 2021.This brings the total dividends for
the year to 35.5 cents per share declared, and represents a pay-out ratio of 70.2% of adjusted net profit.
•This is in line with our recently amended dividend policy which was approved by the Board in March 2021 –to
distribute at least 70% of the Group’s full year adjusted net profit, at the discretion of the Board and subject to trading
performance, market conditions and liquidity requirements.We are pleased to be able to declare a final dividend, even
in the wake of further COVID-19 lockdown periods following year end.
UPDATE
1.Operating profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between adjusted operating profitand Earnings before Interest and Taxation
(EBIT) is located on slide 19 and in note 2 of the financial statements for the year ended 1 August 2021.
2.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure. A reconciliation between Adjusted and Statutory NPAT is located on slide 19 and in
Note 5 of the Financial Statements for the year ended 1 August 2021.

Sustainability
•In August 2021 we established a new Board level Environmental and Social Sustainability Committee, which oversees
our governance of environmental, social and sustainability issues.
•We have been carbon neutral since 2019.
•In FY21 we diverted 77.9% of waste from landfill, we have reduced our scope 1 and 2 emissions by 2.7% since FY19,
and we have increased our women in senior leadership roles to more than 44%. We have also facilitated community
donations of around $4.3m for key social causes.
•While we still have work to do, I am incredibly proud of these and the many other initiatives and progress we have
achieved this year.
Governance
•In 2021, we also saw a change in our Directors.Following the farewell of Sir Stephen Tindall and Keith Smith at the
Annual Meeting last year, we welcomed Robbie Tindall as a permanent member of the Board.We also announced
the appointment of Rachel Tauleleiin February and who will stand for election by shareholders at the Annual
Shareholders’ Meeting in November.
•Foodstuffs sell down of their shares in The Warehouse Group in May 2021 has increased our freefloatliquidity and
changed the shape of our register, with institutional shareholders now holding approximately 9% and retail
shareholdersholding approximately 20% of shares.
7
UPDATE

9
Think customer
We put the customer first in
everything we do
Own it
We walk the talk and make
things happen
Do good
We are one team, standing
up for our people, our planet
and our communities
Purpose
Vision
Priorities
Values
Helping Kiwis live better every day
To build New Zealand’s most sustainable, convenient and customer-first company
Build a customer
ecosystem
Build the future
experience
Invest in our infrastructure
to excel in retail
fundamentals
Ethical and sustainable
performance
Customer-first offering
powered by data
Frictionless on-demand
shopping experience

10
✓Launched new website for
The Warehouse
✓Continued investment in
TheMarket.com, providing over 2.5
million available products
✓Improved inventory management –
reducing in-store SKUs by 18.5% for
The Warehouseand12.6% for
Warehouse Stationery
✓Enhanced range optimisation
FY21
Achievements
✓Weighted averageNet Promoter
Score increased 7.5 points to 76.6
✓Click & Collect sales grew 21.1% -
driven by Same-day Click & Collect
at The Warehouse and One-hour
Click & Collect at Noel Leeming
✓252 stores across the network
including 8 SWAS stores
implemented during the year –
bringing total to 25
✓Significant progress on core system
projects –WMS, ERPFI and MDM
✓Increased stock turn from 4.4 times
to 5.3 times
✓Reduced aged inventory
1
as
percentage of inventory from 28.1%
in FY20 to 16.1% in FY21
✓Liquidity of $490.5 million,with no
debt
Build a customer
ecosystem
Build the future
experience
Invest in our
infrastructure to excel
in retail fundamentals
Priorities
Strategic Themes
•Engage new and existing
customers by better solving
their needs and wants
•Offer a seamless and
frictionless customer
experience
•Meet & exceed changing
consumer behaviours
•Leverage footprint and
develop supply chain
•“What I want, where I need it,
when I choose”
•Best in NZ retail performance
metrics
•Strong corporate and brand
reputation
•Long term financial security
1.Aged inventory is stock held for more than 26 weeks.
PRIORITIES

ECOSYSTEM
11
•Our customer-centric ecosystem enables frictionless
shopping experiences creating greater customer
value.
•We have strong ecosystem foundations in place with
an established physical footprint and market leading
digital assets.
•We have confirmed the rollout of a unified loyalty
programme across the Group as “Market Club” and
“Market Club+”.
•In July, we announced that we have become a
cornerstone strategic investor in Zoom Health –we
have a shared vision to offer convenient and
affordable access to healthcare to all Kiwis.
•Further improvements will make customer shopping
journeys with our family of brands faster, easier and
more personalised through unified data, platforms
and people –while remaining focused on the
fundamentals of delivering exceptional value and new
assortments with improved customer fulfilment and
payment options in store and online.

12
BY BRAND
+5.8%+4.8%
to 6.3% of total sales
10.4%
720 basis point improvement
+37.9%
+2.2%flat
to 10.3% of total sales
12.5%
600 basis point improvement
+64.4%
+11.7%-6.4%
to 10.5% of total sales
5.8%
240 basis point improvement
+9.3%
2.1%
up from Operating Loss of 13.6%
+22.2%+18.4%
to 28.8% of total sales
+26.1%
Sales GrowthOperating Profit
Margin
Online Sales
Growth
Growth in Click &
Collect Fulfilment

TheMarket–218k customers 207%
Orders per customer16%
Range
Audience
Transactions
5,321 brands58%
2.5mavailable products93%
40m sessions –TheMarketand 1-day
TheMarket–19m sessions138%
50k club members102%
397k active customers –TheMarketand 1-day
•Our vision is to change the way Kiwis shop –providing more options, better
convenience and value
•Nearly doubled available product range -our goal is to make 10,000+ of the
world’s most desirable brands available to all Kiwis
•Significant audience growth supported by increasing purchase frequency has
grown merchant orders by 265% YoY
•MarketClubmembership growth a key value driver
•1-day deals business now consolidated.

15
For the year ended 1 August 2021
1.Operating profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between adjusted operating profitand Earnings before Interest and Taxation (EBIT) is located on slide 19
and in note 2 of the financial statements for the year ended 1 August 2021.
2.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Adjusted and Statutory NPAT is located on slide 19and in Note 5 of the Financial
Statements for the year ended 1 August 2021. 2020 Adjusted NPAT was restated from $80.7 million to $32.1 million due to the Group repaying the Government COVID-19 wage subsidy in December 2020.
This repayment resulted in the reclassification of the initial receipt of the subsidy in March 2020 as an unusual item. This prior year reclassification has the effect of reducing 'other income' and decreasing
the 'unusual item' expense on the Income Statement by $67.6 million (before tax) for the year ended 2 August 2020.
3.The final dividend has been declared on the assumption that Auckland is at Level 2 from the end of October.
•Group sales up 7.6% on prior year, driven by top-line growth
across all major brands but particularly Noel Leeming and
Torpedo7. FY20 was a 53 week financial year vs 52 in FY21.
•Gross Profit continues to grow at a faster rate than sales due to
strengthening margins. This is attributable to better margin
management and sell through rates requiring lower clearance and
promotional activity.
•Cost of doing business (“CODB”) increased by 1.5% but declined
as a percentage of sales to 29.4%. CODB remains a key focus for
the Group and it is encouraging to see the impact of major
initiatives reflected in the continued downward trend of CODB %.
•The aforementioned factors have contributed to an operating profit
margin of 7.0%. Operating profit is up 388.5% to $240.6m
performance which was materially impacted by the lockdowns
resulting from the outbreak of COVID-19 and is restated to exclude
the wage subsidy.
•Operating cash flow has declined by 39.4%. Increasing profitability
has been offset by investment in working capital as inventory
balances build on the low levels of FY20, as well as the $67.6m
wage subsidy repayment, plus the move of international creditors
to 120-day pay cycle in FY20.
•Dividends include a special dividend of 5.0 cps declared in
February, interim dividend of 13.0 cps declared in April, and final
dividend of 17.5 cps
3
payable on 3 December 2021.
$ million
FY21FY20Variance
Group Sales
3,414.6 3,172.8
7.6%
Gross Profit
1,241.4 1,034.9
20.0%
Gross Profit Margin %36.4%32.6%380
CODB
1,000.8 985.6
1.5%
CODB %29.4%31.0%(160)
Operating Profit
1
240.6 49.3
388.5%
Operating Profit Margin %7.0%1.6%540
Continuing NPAT (reported)
117.7 44.4
164.7%
Continuing NPAT (adjusted)
2
175.5 32.1
446.6%
NPAT (Reported)
117.7 44.5
164.6%
Operating Cash Flow
247.3 408.0
-39.4%
Dividends
35.5cps -
35.5cps
PERFORMANCE

-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
W1W2W3W4W5W6W7W8W9
W10W11W12W13W14W15W16W17W18W19W20W21W22W23W24W25W26W27W28W29W30W31W32W33W34W35W36W37W38W39W40W41W42W43W44W45W46W47W48W49W50W51W52
H1 AND H2 SALES TREND
1616
Auckland Level 3
Lockdown
Wed 12 Aug –
Sun 30 Aug
Timing difference
of public holidays
and store
opening hours
over Christmas /
New Year
L4/L3 Lockdown
25 Mar –13 May
FY20
Release of pent
up demand at the
end of first
lockdown in
FY20
1.Total sales includes sales from TheMarket.com, Other Group operations and Inter-segment eliminations
$m
FY21 H1FY20 H1Var %FY21 H2FY20 H2Var %FY21FY20Var %
The Warehouse
967.3 939.3 3.0%837.6 766.7 9.2%1,804.9 1,706.0 5.8%
Warehouse Stationery
136.6 133.8 2.1%138.0 135.0 2.2%274.6 268.8 2.2%
Noel Leeming
593.2 512.8 15.7%535.0 497.2 7.6%1,128.2 1,010.0 11.7%
Torpedo7
84.9 65.8 29.0%73.8 64.1 15.1%158.7 129.9 22.2%
Other
1
26.3 31.7
-17.0%
21.9 26.4
-17.0%
48.2 58.1
-17.1%
Total Group Sales
1,808.3 1,683.4 7.4%1,606.3 1,489.4 7.8%3,414.6 3,172.8 7.6%

MARGIN
Gross Profit Margin (%) by Brand
Group Gross Profit Margin (%)
•Gross Profit Margin has been one of the most significant drivers
of Group profitability, with strong growth across all brands.
•Improvements in inventory ageing and stock turns has resulted in
the need for lower clearance activity, which when combined with
the reduced promotional activity that comes with being an Every
Day Low Price (EDLP) retailer, has assisted in Gross Profit
Margin growth.
•With a strong focus on managing the sell through on seasonal
product lines and increasing the proportion of our stock that is
required all year round (“continuity stock”) also contributed to the
improved Gross Profit Margin.
•Torpedo7 has had a number of initiatives focused on gross profit
margin as part of its turnaround. FY20 Gross Profit Margin
included incurring one off provisions of $5.3m.
•The FY21 result is a continuation of the upward trajectory since
FY17 (noting that FY20 was impacted by the first nationwide
COVID-19 lockdown) where we commenced the move to EDLP
in TWL, started price optimisation and COGS negotiations, which
has helped to drive the growth in Gross Profit Margin.
37.9%
42.5%
21.9%
22.9%
42.2%
48.3%
23.3%
37.9%
The WarehouseWarehouse
Stationery
Noel LeemingT7
FY20FY21
32.6%
33.1%
33.5%
32.6%
36.4%
FY17FY18FY19FY20FY21
17

DOING BUSINESS
•The management of costs as a proportion of Sales has been an
ongoing focus of the business, and in FY21 we delivered a
160bps improvement in this measure.
•Approximately 71% of employee expenses are related to stores,
fulfilment centres and distribution centres which have all been
managed well throughout a period of elevated sales. This
includes efficiencies in The Warehousestores from the Labour
Operating Model update, ensuring our store team members are
rostered and available when our customers want to shop, as well
as improvements in our online fulfilment.
•The move to Agile at the Store Support Office (SSO) has
enabled greater productivity at a time of significant
transformation investment, in particular in core and digital and
customer systems
•Combined Depreciation and Lease costs have declined with a
reduction of 5 stores as part of Group store footprint optimisation
and 8 SWAS integrations in FY21 bringing the total number of
SWAS to 25.
•Major components of other costs include technology costs, credit
card commission and other store costs.
Cost of Doing Business (CODB) as percentage of Sales
31.0%
29.4%
* Cost of doing business is presented before the impact of IRFS 16
17.7%
16.9%
1.8%
1.6%
4.3%
3.9%
7.2%
7.0%
FY20FY21
Other ExpenseLease Expense*
Depreciation and Amortisation Expense*Employee Expense
18

19
REPORTED RESULTS
EBITNPAT
$ million
FY21FY20FY21FY20
Adjusted Earnings
240.6 49.3 175.5 32.1
Gain on property disposals
-0.1 -0.1
Restructuring costs -Rise
-(22.0)-(15.8)
Restructuring costs -Agile
(16.1)(22.3)(11.5)(16.0)
Interest rate hedge derivatives write-off
(3.3)(6.4)(2.4)(4.6)
Brand impairment (Torpedo7)
-(2.5)-(1.8)
COVID-19 Wage subsidy
(67.6)67.6 (48.6)48.6
Adjustments for NZIFRS 16
40.6 40.9 1.4 (0.1)
Income tax relating to prior year property
disposals and building depreciation
--3.3 2.0
Reported Earnings
194.2 104.7 117.7 44.5
1.To improve the understanding of underlying business performance, the Group adjusts profit for unusual and non-trading items.
Unusual items include profits from the sale of assets and losses associated with adjustments in carrying value of assets, M&A
activity, restructuring costs and the non-cash impact of applying the NZIFRS 16 lease accounting standard.
2.The NZIFRS16 adjustment of $40.5m in FY21 (FY20 : $40.9m) represents the difference between the depreciation on Right-of-
use-Assets and old NZGAAP rent expense.
3.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Adjusted and
Statutory NPAT is located on slide 19and in Note 5 of the Financial Statements for the year ended 1 August 2021. 2020 Adjusted
NPAT was restated from $80.7 million to $32.1 million due to the Group repaying the Government COVID-19 wage subsidy in
December 2020. This repayment resulted in the reclassification of the initial receipt of the subsidy in March 2020 as an unusual
item. This prior year reclassification has the effect of reducing 'other income' and decreasing the 'unusual item' expense onthe
Income Statement by $67.6 million (before tax) for the year ended 2 August 2020.
•The Group has continued its transition to an Agile
way of working. The restructuring costs incurred
relate to fees paid to consultants assisting the
Group throughout the Agile transition and
additional redundancy costs connected with the
Group's restructure announced last year and
finalised in FY21 H1.
•No further restructuring costs in relation to the
Agile transition are expected.
•The wage subsidy received in March 2020 was
voluntarily repaid to the Government in December
following the strength of trade in the weeks
leading up to Christmas 2020. Both the receipt
and repayment of the wage subsidy have been
classified as unusual items.
For the year ended 1 August 2021

20
SHEET
$ million
FY21FY20Variance
Inventory
457.2393.6
63.6
Trade and other receivables
79.384.3
(5.0)
Trade and other payables
(436.6)(420.8)
(15.8)
Provisions
(97.9)(84.9)
(13.0)
Working Capital
2.0(27.8)
29.8
Fixed assets
288.7259.7
29.0
Funds Employed
290.7231.9
58.8
Tax Assets
75.290.8
(15.6)
Derivatives
5.8(26.9)
32.7
Right of Use Assets
736.5774.2
(37.7)
Goodwill and Brands
73.073.0
-
Capital Employed
1,181.21,143.0
38.2
Shareholders' equity
452.2377.1
75.1
Minority interests
(2.7)(0.8)
(1.9)
Cash
(160.5)(168.1)
7.6
Lease liabilities
892.2934.8
(42.6)
Sources of Funds
1,181.21,143.0
38.2
Book gearing
61.9%67.1%(520) bps
Liquidity
1
490.5498.1(7.6)
•The Group had a negative working capital position at the end of
FY20, largely due to a significantly lower level of inventory. At the
end of FY21, inventory has grown by $63.6m albeit remaining
below historical levels due to improvements from inventory
management initiatives.
•Increased shareholder equity was driven by profitability flowing
through to retained earnings.
•As at year end, net cash and liquidity are at a similar level to last
yearwith total banking facilities available of $330m.
•During FY21 the Group introduced a liquidity requirement of
$350m -$450m to be used to cover operating expenses when
there are periods of restricted sales.
As at 1 August 2021 (comparative 2 August 2020)
1. The Group held cash on hand of $160.5 million (2020: $168.1 million) at balance date, combined with available bank facilitiesof$330 million, providing liquidity of $490.5 million (2020:
$498.1 million).

21
MANAGEMENT
•Inventory levels remain below historical averages but have
increased year on year with FY20 inventory impacted by global
supply chain challenges as a result of COVID-19.
•Increased demand and improved inventory management has
seen Group stockturn improve from 4.4 in FY20 to 5.3 in FY21.
•Inventory management continues to be a key focus of the Group’s
transformation journey, and is now delivering tangible benefits:
oAged inventory has continued to decrease with increased
sales and controlled purchases, with aged inventory(2)
decreasing from 28.1% in FY20 to 16.1% in FY21.
oThe Group achieved further SKU reduction in the period,
with SKUs at the close of the year down 13% in WSL and
18% in TWL.
oThrough a continued focus on our EDLP strategy in The
Warehouse and reduced discounting across our other
Brands, we have reduced unprofitable sales which is
reflected in strong Gross Profit Margin % growth.
oWe have continued to improve our buying and inventory
management processes, which has helped deliver an
increase in “continuity stock” as a proportion of inventory.
Closing inventory at full year ($m)
1.The Warehouse and Warehouse Stationery are now combined due to the one
pool of stock initiative
2.Aged inventory is stock on hand greater than 6 months
Stockturn by Brand
3.59
7.34
2.01
4.28
8.56
2.78
The Warehouse &
Warehouse Stationery
Noel LeemingT7
FY20FY21
(1)
487.3
523.8
517.8
393.6
457.2
FY17FY18FY19FY20FY21
FY17FY18FY19FY20FY21

22
FLOW
$ million
FY21FY20Variance
Trading EBITDA
1
430.4 244.9
185.5
Working Capital
(31.0)197.6
(228.6)
Restructuring costs
(16.1)(38.7)
22.6
Wage subsidy
(67.6)67.6
(135.2)
Taxes Paid
(32.1)(19.9)
(12.2)
Interest Paid (Lease interest)
2
(37.9)(46.6)
8.7
Other items
1.6 3.1
(1.5)
Operating Cash Flow
247.3 408.0
(160.7)
Capital Expenditure
(83.2)(64.5)
(18.7)
Divestments –PPE
0.212.0
(11.8)
Lease principal repayments
(99.4)(83.8)
(15.6)
Close out derivatives
(9.8)-
(9.8)
Dividends Received
0.3 0.1
0.2
Dividends Paid
(62.4)(27.9)
(34.5)
Other
(0.5)0.4
(0.9)
Net Cash Flow
(7.5)386.4
(393.9)
Opening Net Cash / (Debt)
168.1 (218.3)
386.4
Closing Net Cash
160.5 168.1
(7.6)
•Operating cash flow of $247.3m compared with $408.0m in
FY20 largely reflects strengthened profitability from trade being
offset by investment in working capital and the repayment of the
wage subsidy
•Capital expenditure cash flow increased by $18.7m to $83.2m
due to increased investment in core systems, digital and
customer systems and in our stores.
•Lease principal repayments were $15.6m more than FY20. The
Group received rent relief amounting to $8.1m from landlords in
FY20 due to temporary store closures caused by the COVID-19
pandemic. The remaining difference relates to rent increases
and payments associated with early lease terminations
•The Group was pleased to be in a position to recommence
dividends in FY21 after no dividends in FY20 due to COVID-19
uncertainty. Dividends paid in FY21 represent the interim and
special dividends of 13.0cps and 5.0cps, respectively. The
$27.9m paid in FY20 relates to the FY19 final dividend of 8.0cps.
1.Trading EBITDA represents Earnings before interest, taxation, unusual items, depreciation and amortisation.
2.Interest paid includes $38.5m (FY20: $41.1m) interest on lease liabilities. Refer to Note 10 of the Financial Statements for theyear ended 1 August 2021.
For the year ended 1 August 2021

CAPITAL EXPENDITURE
•FY21 capex was $85.0 million, compared to $63.1 million in FY20.
•The Group’s major investments in the year were developing our core
systems including ERP finance and inventory systems, Warehouse
Management System and cloud-based Master Data Management.
•Significant investment was made in customer focused digital
initiatives including the Group eCommerce platform for our brand
sites, and further development of TheMarket.com.
•Store renewals capital expenditure included the new The Warehouse,
Warehouse Stationery and Noel Leeming stores at Ormiston, the Noel
Leeming Silverdale expansion and the new T7 store in Napier.In
addition to Ormiston, seven further SWAS stores were opened during
the year including Masterton, Lyall Bay, Whanganui, Oamaru,
Riccarton, TeAwamutu and New Plymouth The Valley.
•While this is less than our guidance range of $100-120 million, this is
significantly higher than annual capital expenditure over the past five
years, as we invest in operational change and invest in growth areas
of the business.
•We expect capital expenditure in FY22 to be in the range of $115
million to $135 million andto remain at this level for the coming years.
Core Systems$ 20.8m
Digital and customer$ 17.7m
Store Renewals$ 13.7m
Supply Chain$ 4.9m
Other$27.9m
Total Capital Expenditure$85.0m
24.5%
20.8%
16.2%
5.7%
32.8%
Capex
Spend
$85.0m
23

24

Torpedo7
$158.7m
The
Warehouse
$1,804.9m
Noel
Leeming
$1,128.2m
Warehouse
Stationery
$274.6m
The
Warehouse
$187.6m
$132.7m
Other
1
$48.2m
SUMMARY
FY21 Operating Profit
5.8%11.7%2.2%22.2%
Noel
Leeming
$64.9m
$30.7m
Warehouse
Stationery
$34.3m
$16.8m
Torpedo7
$3.3m
$21.0m
Other
2
$(28.8m)
$4.0m
Total Group
$240.6m
$191.3m
17.7%
TheMarket
1
$(20.7)m
$5.9m
All brands reported record full year operating profit in FY21
25
52.9%
8.0%
33.1%
4.6%
1.4%
FY21 Group Sales
$3,414.6m
1.TheMarketincludes 1-day.
2.Other items in Adjusted operating profit include corporate costs and other unallocated overheads.

For the year ended 1 August 2021
26
•Sales in FY21 were up 5.8% against FY20. H1 was up 3.0% despite the
Auckland Region experiencing 18.5 days of COVID-19 lockdown in
August 2020, when stores were unable to trade. H2 was up 9.2%,
primarily due to the impact of COVID-19 in the prior comparative period.
•Online sales have continued to grow in FY21 increasing by 4.8%
compared to the prior period, driven by Click & Collect sales growing
37.9% with the introduction of same day collection, and now making up
39.4% of online sales.
•Gross Profit % was up 430 bps, as our strong focus on managing the sell
through on seasonal product lines and increasing the proportion of our
stock that is required all year round (“continuity stock”), combined with
our move to EDLP, resulted in a decrease in clearance and promotional
activity.
•Grocery has been a standout category across the year, as well as home,
gardening and toys all achieving double digit growth.
•CODB improved by 3.0% driven by the benefits derived from the Labour
Operating Model update in stores. This has led to a 6.0% decline in Store
Labour costs, whilst also seeing improvements in customer NPS.
•Operating Profit increased 241.7% to $187.6m. Operating Profit Margin
% has grown to 10.4%, 720 bps better than FY20 and 540 bps better
than FY19.
•During the year, we closed three The Warehouse stores (Dunedin,
Whangaparaoa and Johnsonville) and opened one new store in
Ormiston, Auckland.
$millionFY21FY20Variance
Sales
1,804.91,706.0
5.8%
Gross Profit
761.7646.9
17.8%
Gross Profit Margin %
42.2%37.9%430
Cost of doing business (CODB)
574.1592.0
-3.0%
CODB %
31.8%34.7%(290)
Operating Profit
187.654.9
241.7%
Operating Profit Margin %
10.4%3.2%720
Stores
9092
(2)

•Warehouse Stationery continued to build on the momentum established in
previous years, delivering yet another record result in FY21.
•Sales were up 2.2% on the prior period, with strong growth in transactions
(instore and online) up 10% helping to offset a decline in average basket
size compared to FY20.
•Gross Profit increased 15.9% to $132.5m, through higher sales volumes
and a 580 bps improvement in Gross Profit Margin, as we continue to
benefit from a decrease in aged inventory and clearance activity.
•Operating Profit increased 96.0% to $34.3m, with Operating Profit Margin
improving a significant 600 bps to 12.5%.
•Office Furniture was the standout category in Sales, benefiting from
strong demand as a result of Kiwis being required to work and study from
home, with improved stock levels also helping to drive sales in this key
category.Print & copy centre and arts & crafts categories also
experienced strong growth.
•Online sales held flat compared to prior year, as we cycled throughthe
anniversary of the first lockdown (March to May 2020). Customers have
increasingly embraced Click & Collect with sales increasing 64.4%,
making up 22.5% of Online sales.
•During FY21 we closed two Warehouse Stationery stores (Henderson and
Hornby) and opened one new store in Ormiston, Auckland.
•A total of 8 SWAS integrations were implemented in FY21 –Masterton,
Lyall Bay, Whanganui, Oamaru, Riccarton, TeAwamutu, Ormiston and
New Plymouth The Valley –bringing the total to 25.
27
* Includes 25 SWAS integrations. 6 integrations implemented in FY21 H1 and 2
integrations implemented in FY21 H2.
$ millionFY21FY20Variance
Sales
274.6 268.8
2.2%
Gross Profit
132.5 114.4
15.9%
Gross Profit Margin %
48.3%42.5%580
Cost of doing business (CODB)
98.2 96.9
1.4%
CODB %
35.8%36.0%(20)
Operating Profit
34.3 17.5
96.0%
Operating Profit Margin %
12.5%6.5%600
Stores *
70 71
(1)
For the year ended 1 August 2021

28
$millionFY21FY20Variance
Sales
1,128.2 1,010.0
11.7%
Gross Profit
262.7 221.1
18.8%
Gross Profit Margin %
23.3%21.9%140
Cost of doing business (CODB)
197.8 186.9
5.8%
CODB %
17.5%18.5%(100)
Operating Profit
64.9 34.2
89.9%
Operating Profit Margin %
5.8%3.4%240
Stores
71 74
(3)
•Noel Leeming delivered another record year in both sales and Operating
Profit, with sales exceeding $1.1bn for the first time and Operating Profit
growing by 89.9% to $64.9m.
•Sales growth continued the strong momentum seen in FY21 H1, reporting
full year sales growth of 11.7% versus FY20.
•Online shopping has established itself as a significant channel for Noel
Leeming. While online sales decreased 6.4%, as we cycled through the
anniversary of the first lockdown (March to May 2020), online sales
remained above 10% of total sales, which is almost double pre-pandemic
levels. Customers continue to embrace our 1 Hour Click & Collect offer,
with Click & Collect Sales increasing by 9.3% to 62.0% of OnlineSales.
•Our Business to Business (Commercial) division, known as “TWG
Business”, continued its positive growth trajectory and recorded double
digit year on year sales growth.
•Top performing categories, all of which had double digit sales growth,
included: Appliances, Audio Visual and Smart Tech.
•Gross Profit Margin % was 140 bps higher at 23.3%, reflecting a shift in
the sales mix towards higher margin products. Together with improved
operational efficiencies, being reflected in a reduction of 100 bps in the
CODB % (to Sales). This underpinned a full year Operating Profit increase
of $30.7m (or 89.9%) with Operating Profit Margin % growing 240 bps to
5.8%.
•During FY21, we closed four Noel Leeming stores (Tokoroa, Hunters
Plaza, Morrinsville and Manukau Westfield) and opened one new store in
Ormiston.
For the year ended 1 August 2021

$millionFY21FY20Variance
Sales
158.7129.9
22.2%
Gross Profit
60.229.7
102.3%
Gross Profit Margin %
37.9%22.9%1,500
Cost of doing business (CODB)
56.947.4
19.9%
CODB %
35.8%36.5%(70)
Operating Profit
3.3(17.7)
118.6%
Operating Profit Margin %
2.1%(13.6%)1,570
Stores
2120
1
Torpedo7 financial results (FY21 and FY20 comparatives) include Torpedo7 only and exclude
1-day which are now included in TheMarketresults in the Group financial statements.
•Sales increased 22.2% in FY21 through accelerated online and store
sales particularly in H1.There was a strong customer response to
increased targeted media and refreshed instore campaigns, supported
by favourable domestic tourism.
•Torpedo7 experienced strong online sales growth in FY21, up 18.6% on
prior period influenced by change in consumer behaviour post COVID-19
lockdowns.
•Customers embraced Torpedo7 Click & Collect service with these sales
increasing 26.1% and making up 43.1% of online sales.
•Gross Profit increased 102.3% to $60.2m with FY20 impacted by one off
provisions of $5.3m. GM% growth was driven by strategic initiatives
which improved margins and reduced discounting.
•CODB has improved as a percentage of sales by 70 bps on the prior
period with efficiencies gained across supply chain and store labour.
•The number of Torpedo7 stores increased to 21 with Napier store which
opened in FY21 Q3.
•FY21 Operating Profit of $3.3m is a significant improvement compared to
Operating loss of $17.7m in FY20.
For the year ended 1 August 2021
29

30

FY22
•FY22 sales for the first 8 weeks of the financial year were down 22% compared to the same period in
FY21.Despite the year starting positively, New Zealand went into a country wide Level 4 COVID-19
lockdown on 18 August –2.5 weeks into the financial year.
•Sales have traded broadly in line with expectations at the different lockdown levels we have experienced
since the start of the financial year.
•Given cash and available facilities on entering lockdown, the Group has not applied for the Government
wage subsidy.The Group announced early in the lockdown that it would pay team members in full until
the end of September, to provide certainty to our people.
•Given the moves of south of Auckland to Level 3 on 31 August and north of Auckland to Level 3 on 2
September, limited capital management initiatives have been employed.
•The Group’s cash deposits have reduced significantly since balance date as a result of the decreased
sales but the Group’s bank debt facilities remain undrawn.
•The Board is pleased to announce a fully imputed final dividend of 17.5 cents per share.The final
dividend has been declared on the assumption that New Zealand is predominately at Level 2 from the
end of October. The record date for the dividend will be 18 November 2021 and will be paid on 3
December 2021.
•The Group has prepared for the potential for further significant lockdowns and has therefore maintained
a robust capital position.
31

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 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 securities in The Warehouse Group Limited.
32
DISCLAIMER

TermDefinitionTermDefinition
C&CClick & CollectNIDCNorth Island Distribution Centre
CODBCost of Doing BusinessNIFCNorth Island Fulfilment Centre
COGSCost of Goods SoldNLNoel Leeming
DCDistribution CentreOMSOrder Management System
DIFOTDelivered In-Full On-TimeOMUOperating Model Update
E2EEnd-to-EndPOSPoint-of-Sale
EDLPEvery Day Low PriceSIDCSouth Island Distribution Centre
ELSExecutive Leadership SquadSSOStore Support Office
eNPSEmployee Net Promotor ScoreSSSSame Store Sales
FCFulfilment CentreSWASStore-Within-a-Store
GBOGroup Business OperationsTWLThe Warehouse
GEPGroup eCommerce PlatformWALTWeighted Average Lease Tenure
GMVGross Merchandise ValueWMSWarehouse Management System
LTVLifetime ValueWSWarehouse Stationery
MDMMaster Data Management
GLOSSARY
33

---

To: NZX Limited


Auckland, 29 September 2021

The Warehouse Group FY21 annual result announcement
Key points:
• Group sales were $3.4b, up 7.6% compared to FY20
• Reported Net Profit After Tax attributable to shareholders of $117.7m, up 164.6% from $44.5m in
FY20
• Adjusted Net Profit After Tax of $175.5m, up from $32.1m
• Group online sales of $393.1m, up 5.0% on last year and making up 11.5% of total Group Sales
• Declared a final dividend of 17.5 cents per share


The Warehouse Group Limited (“the Group”) today announced a record result for the full year
ended 1 August 2021. The Group delivered sales of $3.4b, up 7.6% on FY20. Reported NPAT was
$117.7m, up from $44.5m, an increase of 164.6% on the prior year.
The FY21 financial year illustrated material progress for the Group, with the Agile business model
operating effectively to meet changing customer needs in a period of COVID-19 led uncertainty.
The increase in online shopping continued to grow with sales of $393.1m, up 5.0% on last year and
accounted for 11.5% of total Group Sales. Sales that were fulfilled via Click & Collect were up 21.1%
compared to the previous year, including 37.9% growth for The Warehouse brand and 9.3% growth
in Click & Collect at Noel Leeming driven by the introduction of one hour Click & Collect.
The Warehouse Group Chair Joan Withers said the year-end results have exceeded expectations and
show a sustained and deliberate focus on a customer led strategy.
The Group’s Adjusted Net Profit After Tax (NPAT) was $175.5m – up from $32.1m the prior year,
after excluding unusual items including the $67.6m wage subsidy repayment and $16.1m of
restructuring expenses (before tax).
“Pent up demand after lockdowns, strong operational performance and a robust financial position
enabled the Group to repay the COVID-19 wage subsidy of $67.6m for our 11,000 employees in
December 2020,” said Withers. The wage subsidy repayment resulted in a restatement of FY20
figures.
Gross profit margin has been a key driver in profitability, with gross profit margin of 36.4% compared
to 32.6% in the prior year. Across the Group’s brands, this was driven by better sell through rates
requiring lower clearance and promotional activity alongside the continued execution of the
Everyday Low Pricing (EDLP) strategy at The Warehouse.
Group Chief Executive Nick Grayston said “We are very proud of the FY21 outcome particularly the
resilience shown by our team members, who continued to deliver through another year of COVID-19

related disruption, particularly during the 28.5 days of Auckland lockdown last August and in
February and March this year.
“Our culture and mindset and our teams’ expertise have enabled the business to react swiftly in
response to COVID-19 alert level changes, including the closing and reopening of stores and the
move to Click & Collect almost overnight. The same is true of this most recent lockdown period
which has occurred post year end, and we thank our team members for their significant
contributions during challenging times.
“FY21 has given us further confidence that our customer-led strategy is the right one. We are seeing
the benefits of our transformation programme and we are part way through significant digital
investment to improve legacy systems and set ourselves up to give our teams and customers an
even better experience.

“During the year we introduced a new mobile-first Group eCommerce platform with The Warehouse
the first brand to be migrated, and with other brands following in FY22. The change will make our
mobile apps and websites easier to use for our customers, while providing for greater performance
and innovation from our team. This investment allowed us to be able to pivot quickly to the
requirement to trade essentials and non-essentials in split lockdown levels within the current
restrictions.

“We are in the process of upgrading our Enterprise Resource Planning system for finance and
inventory which will further enable the ability for our customers to shop seamlessly across our
brands and channels,” said Grayston.

During the year a focus on inventory management enabled us to drive a reduction in our aged
inventory as a percentage of inventory across the Group, from 28.1% in FY20 to 16.1% in FY21.

Initiatives focused on the Cost of Doing Business (CODB) helped us achieve a reduction as a
percentage of sales to 29.4% (31.0% in FY20), however, CODB overall increased by $15.2m. This
includes a decision to pay our people in full through lockdowns and to reward their efforts in FY21,
we issued a cash bonus totalling $8.7m to all permanent full and part time team members in August
($1,000 to full time and $500 to part time).
The pandemic continues to cause disruption to international freight movement with a shortage of
shipping containers to carry manufactured goods from source to destination, an issue for global
supply chains. While this will cause some delays, overall, we are expecting to be in a better position
than last Christmas and our offshore in-country teams have worked with our vendors to ensure that
we prioritise key stock for our customers.
“Sustainability remains a focus with significant progress made to increase the number of products
we sell, now with over 11,500 products across our ranges with at least one sustainable feature. We
sold around 20 million of these items during the year.
We have been able to direct 77.9% of operational waste from landfill, reduced Scope 1 and 2
emissions by 2.7% and reduced total emissions by 6.4% since FY19 (being the most recent year
unaffected by COVID-19).
“Our work with communities and causes impacting New Zealanders continued with $4.3m raised to
support causes such as tackling family violence, period equity and encouraging healthy homes,” said
Grayston.

Our ambition to increase diversity continued with an increase in female leaders from 39.1% to 44.4%
and the introduction of Brain Badge for our neurodiverse employees.
The Warehouse sales increased 5.8%, to $1.8bn. Online sales increased by 4.8% and now represents
6.3% of total sales, driven by Click & Collect, where sales grew 37.9% aided by the introduction of
same day collection. Reflecting pandemic trends with New Zealanders staying home, The Warehouse
saw lifts in homewares and DIY categories. Gross Profit Margin in The Warehouse increased 430
basis points.
Noel Leeming sales increased 11.7% with Gross Profit Margin increasing by 140 basis points. Key
categories for the year include appliances, audio visual and smart tech with double digit growth. The
Group’s commercial division (TWGB) also achieved double digit growth, mainly driven by Noel
Leeming Group.
Warehouse Stationery continued to build on the momentum on prior year's sales, achieving growth
of 2.2% with Gross Profit Margin increasing by 580 basis points. Online sales were flat at 10.3% of
total sales but showed growth in Click & Collect fulfilment of +64.4%.
Torpedo7 sales increased 22.2% to $158.7m from $129.9m in FY20. Gross Profit Margin was up 1500
basis points delivering an operating profit of $3.3m versus an operating loss of $17.7m in FY20.
Online sales grew from 18.4% to 28.8% of total sales, with Click & Collect increasing by 26.1%.
The Market saw significant range and audience growth supported by an increase in purchase
frequency. Registered users increased 298% and audience sessions increased 138%.
Chair Joan Withers said, “This stronger than expected trading performance enabled the Board to
declare a special dividend of 5.0 cents per share in February 2021, an interim dividend of 13.0 cents
per share in April 2021 and a final dividend of 17.5 cents per share. This brings the total dividends for
the year to 35.5 cents per share declared, and a pay-out ratio of 70.2% of adjusted net profit. The
final dividend, to be paid on 3 December 2021, has been declared on the basis that New Zealand is
predominantly at Level 2 or below from the end of October 2021.
The Group revised its liquidity policy in response to last year’s COVID-19 pandemic and now
operates to a target liquidity range of between $350m to $450m. Strong cashflows ensured we
closed the FY21 financial year with cash on hand of $160.5m compared to $168.1m at the end of
FY20. Unutilised committed bank facilities of $330m, plus cash on hand, provided total liquidity of
$490.5m at year end.
More information about The Warehouse Group’s result, financial performance by brand, strategy
and operations can be found in the 2021 Annual Report, available at
www.thewarehousegroup.co.nz.
ENDS
Contact details regarding this announcement:
Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Kim Russell +64 9 488 3285 or +64 21 452 860
kim.russell@thewarehouse.co.nz
Media: Jordan Schuler, Corporate Affairs Partner +6421 143 6930
media.enquiries@thewarehouse.co.nz

---

Here for
good
The Warehouse Group
Integrated Annual Report 2021

2
The Warehouse Group
CONTENTS
4-5
2021 At a Glance
28-29
Integrated Report
16-17
Our Ecosystem
18-23
Our Brands
24-27
Environment, Sustainability
& Ethical Sourcing
31
Risk & Materiality
8-10
Chair's Report
6-7
Chair & CEO update
11-13
CEO’s Report
14-15
Our Purpose,
Vision & Values

3
Integrated Annual Report 2021
46-49
Our Environment
44-45
Financial Capital
40-43
Our People
51-55
Financial Statements
73-77
Independent Auditor’s Report
56-72
Notes to Financial Statements
78-79
Annual 5 Year Summary
8-3
Governance Report
94-102
Statutory Disclosures
103-106
Global Reporting Initiative Disclosures
107
Directory
32-33
Our Networks
38-39
Our Relationships
36-37
Our Customers

4
The Warehouse Group
At a glance
of total Group sales
up 5.0% on last
year and making up
Online
sales
11.5%
2021 AT 2021 AT
A A GLANCE
$160.5M
Group sales
Reported
N PAT
Adjusted NPAT
Reported
N PAT
up from $32.1m
in prior year
1
at year-end
Net cash
$3.4B
$117.7M
$393.1M
$175.5M
up 7.6% on last year
up from $44.5m in
prior year (up 164.6%)
21.1%
3M
growth in Click
& Collect sales
per week to our
sites and apps
2M
customer store visits
per week
DIGITAL
VISITS
over
1

5
Integrated Annual Report 2021
2 .7%
44.4%
and reduced total
emissions by 6.4%
since FY19
2
of senior
leadership roles
Increased female
senior leaders to
Carbon neutral since 2019
Reduced Scope 1 & 2
emissions by
1. FY20 Adjusted NPAT was restated from $80.7 million to $32.1 million due to the Group repaying the Government COVID-19 wage subsidy in December 2020. This repayment
resulted in the reclassification of the initial receipt of the subsidy in March 2020 as an unusual item. This prior year reclassification has the effect of reducing ‘other income’
and decreasing the ‘unusual item’ expense on the Income Statement by $67.6 million (before tax) for the year ended 2 August 2020.
2. FY20 was considered to be an unusual year given 7 weeks of COVID-19 lockdown and reduced operations.
Overproducts
carried a sustainable feature, accounting
for over $176 million in sales
raised for New Zealand
charities and communities
11,500
$4.3M
77.9%
We have diverted
(up from 76.7% in FY20)
of operational
waste from landfills
The Warehouse,
Noel Leeming &
TheMarket.com
apps in Top 10
shopping apps

in New Zealand
10
To p

6
The Warehouse Group
"We have remained
true to our strategy
and lived our values
by putting customers
first, doing good for
our people and planet,
and delivering on what
we said we would do."
CHAIR &
CHIEF EXECUTIVE
UPDAT E S
Joan Withers
Chair, The Warehouse Group

7
Integrated Annual Report 2021
"We are building an
ecosystem which allows
customers to be recognised
and rewarded however and
whenever they choose to
interact with us."
Nick Grayston
CEO, The Warehouse Group

8
The Warehouse Group
Staying on course
In a year buffeted by the disruption of a global pandemic and the
rollout of a national vaccination programme, The Warehouse Group
has stayed on course.
We have remained true to our strategy and lived our values by
putting customers first, doing good for our people and planet,

and delivering on what we said we would do.
During the 2021 financial year (FY21), we have made material progress
while also embracing the disciplines required to become an agile
business and operate effectively within a changing environment.
The Warehouse Group is the first major retailer to adopt and
implement the agile framework to improve performance. By steadily
enhancing the ways we conduct our business we have been able to
act for the good of our customers, communities, people and investors
in an era of uncertainty, upheaval and isolation.
Our culture and mindset and our teams’ expertise have enabled the
business to open and shut stores and move to Click & Collect almost
overnight during the first wave of COVID-19 alert level changes.

And now again, subsequent to year end we have had to adapt as the
country reverted to Level 4 lockdown.
Agile is not an easy journey – and I want to give full credit to all our
people for having the bravery and stamina to meet the challenge of
such fundamental change.
The execution of the strategy has gone to plan and it is heartening
to now see the benefits of the decision we took in 2017 to transform
our business by striving to build New Zealand’s most sustainable,
convenient and customer-first company.
Four years ago, we would not have anticipated the record results
we have achieved in FY21. There is no doubt that the Group has
benefitted from the changes to the way New Zealanders now live,
work and shop. Some of that change was driven by COVID-19
but there has undoubtedly been a shift in behaviours that will be
significant and enduring.
COVID-19 was a causative component of our results for the last
financial year and we were able to capitalise on the tailwinds arising
from border closures and restricted international travel to the fullest
extent because of the transformation journey we have been on.
However that is not the whole story of FY21 and the fundamental
changes we have made in the business are undoubtedly providing
significant benefit. Our increasing competency in data utilisation,
and ability to understand and meet customers’ product and service
needs much better than we did in the past have contributed to
margin improvement. Alongside this, our focus on defining the future
CHAIR'S
REPORT
customer experience, the continued execution of Every Day Low
Pricing in The Warehouse and reduced discounting across other
brands positioned us to catch the rising wave of in-store and online
retail demand amplified by the impacts of COVID-19.
People are now much more used to shopping remotely. The significant
investment in our digital future and a quality customer experience has
delivered material returns as people embraced services such as Click &
Collect, which grew 21.1% year-on-year.
Financial performance across the Group was strong, and the sales
growth at Torpedo7 in particular merits a call out – up 22.2% on last
year, a testament to the execution of the growth strategies put in
place by the team as well as the way Kiwis have pursued cycling,
water sports and other outdoor activities locally instead of

holidaying offshore.
Two years after the launch of TheMarket.com, our investment in this
platform has been vindicated as more and more Kiwis shop from a
screen. TheMarket.com’s growth during FY21 includes almost 397,000
active customers and over 50,000 Market Club members.
We started our strategic and operational transformation back in 2017
and our FY21 results further strengthen our resolve and confidence in
our course of travel.
The results
Our adjusted net profit after tax (NPAT) was $175.5m, up from

$32.1m last year, with reported NPAT being $117.7m - a record for
The Warehouse Group.
Strong operational performance, sustained sales momentum
and a robust financial position enabled the Group to repay the
Government COVID-19 wage subsidy of $67.6m for our 11,000
employees in December 2020.
We could not have delivered such a lift in profitability without the
improvements our teams have made in our stores, distribution and
fulfilment centres, our Store Support Office and to our digital platform.
The fact that we did this during a year which started with Auckland
entering Level 3 lockdown for two weeks on 12 August is a testament
to the resilience of our people and our business. As I write this, post
financial year end, the country is once again in Level 4 lockdown and
Nick Grayston, the executive leadership squad and our entire team
are responding to the challenges and opportunities we again face.
On virtually all of our key measures, The Warehouse Group has made
significant strides year-on-year. Total retail sales increased from $3.2b
to $3.4b, and operating margin has risen from 1.6% to 7.0%.
Chair’s ReportChair’s Report

9
Integrated Annual Report 2021
CHAIR'S
REPORT
Reported net profit attributable to shareholders for the year was
$117.7m, compares to $44.5m last year.
Capital management
As I noted previously, reported work undertaken 18 months ago in
terms of balance sheet management continues to assist us with our
capital management.
We are comfortable with our capital structure and continue to focus
on ensuring that we have the required liquidity for the Group and
that we are able to reward our shareholders with a sustainable and
coherent dividend policy.
In the current uncertain economic environment the Group considers
it appropriate to maintain high levels of liquidity. Our undrawn bank
debt facilities of $330m, together with cash on hand at year end
provide a liquidity buffer of $490.5m.
The new policy is to distribute at least 70% of the Group's full year
adjusted net profit, at the discretion of the Board and subject to
trading performance, market conditions and liquidity requirements.
This dividend policy provides the Group with flexibility to maintain

a stable capital structure, allowing for capital expenditure to invest
for future growth, and progressive and sustainable dividends.
In accordance with this new policy the Board declared a fully
imputed FY21 interim dividend of 13.0 cents per ordinary share paid
on 22 April 2021.
The Board is pleased to announce a fully imputed final dividend of
17.5 cents per share. The final dividend has been declared on the
basis that New Zealand is predominantly at Alert Level 2 or below
from the end of October 2021. The record date for the dividend will
be 18 November 2021 and will be paid on 3 December 2021.
Sustainable and affordable
Our customers increasingly expect that businesses with which
they interact have a transparent and measurable commitment to
sustainability.
The Warehouse Group aspires to be New Zealand’s most sustainable
retailer and is implementing initiatives in three focus areas: people,
products and planet.
Through efforts including ethical sourcing, reduction in packaging
and plastics, and prioritising sustainable products and materials, our
brands now offer over 11,500 products with sustainable attributes –
up from 6,000 a year ago.
We are working with community organisations such as The Salvation
Army, Plunket, and Women’s Refuge and taking leadership positions
on issues such as reducing family violence, period poverty, supporting
diversity, and helping to equip hundreds of vulnerable Kiwi children
with much needed back to school essentials.
During FY21 we established a board committee which oversees our
governance of environmental, social and sustainability issues. The
company achieved carbonzero status back in FY19, and right from the
time our founder Sir Stephen Tindall opened the first The Warehouse
store back in 1982, we have had a strong focus on sustainability. The
Board is committed to understanding and implementing ways we can
fulfil our obligations to stakeholders as greater expectations and a
requirement for more transparency around Environmental and Social
Governance (ESG) unfold.
I am incredibly proud of these and the many other initiatives

detailed elsewhere in this report that demonstrate a commitment
to sustainability and action.
Board activity
We have continued to refresh the Board, following the retirement

of Sir Stephen Tindall and Keith Smith last year.
In February we appointed Rachel Taulelei as a non-executive
director. Rachel has unique commercial experience as chief
executive of large operational locally owned businesses, including
co-founding business design and brand strategy firm, Oho and at
Kono, a top 100 New Zealand food and beverage company. She was
also founder of Yellow Brick Road which specialises in direct seafood
supply into restaurants.
"Our culture and
mindset and our teams'
expertise have enabled
the business to open
and shut stores and
move to Click & Collect
almost overnight during
COVID-19 alert level
changes."
Capital expenditure has risen on the prior year, with increased spend
on customer-facing digital and core system initiatives including
the Group eCommerce platform and enterprise resource planning
systems for finance and inventory.
FY21 capex spend was $85m, lower than initially budgeted, but
higher than the average last three years of $65m.
Dividend policy
The Board took a cautious approach to cash preservation in FY20
due to COVID-19 and the resultant operational uncertainty. We
made the difficult decision to cancel the FY20 interim dividend and
declared no FY20 final dividend.
However, following stronger than expected trading performance
in November and December 2020, the Board declared a special
dividend of five cents per share in February 2021.
The Board undertook a review of the Group dividend policy,
comparing it to market practice and other listed retailers, and taking
into account current and forecast Group operational cash flow,
forecast capital expenditure and liquidity requirements.
Directors approved a new dividend policy in March 2021.

10
The Warehouse Group
Rachel also has strong credentials leading business councils
and in non-executive directorships with particular expertise in
primary industries.
She currently chairs the APEC Business Advisory Council and was

a member of the Prime Minister’s Business Advisory Council.
Rachel’s broad-ranging experience adds an important skillset to our
Board and complements the skills of existing directors. (Please refer

to the Board Skills Matrix available on page 88).
Future Director Renee Mateparae attended her final meeting in
September. The Board has valued her contribution very highly and
her expert knowledge of agile structures and processes gained
through her leadership role at Spark. She has been highly committed
to her Future Director role, and we have thoroughly enjoyed having
Renee at the board table.
Chair’s Report
"The Group has
traded well through
the turbulence of
FY21. However, the
COVID-19 environment
continues to evolve and
it would be premature
to anticipate a return
to full normality
in FY22."
Our new Future Director is Caroline Rainsford. Caroline is currently
the Country Director for Google NZ, a role she has held since 2017.
Prior to this, she was the Marketing and Product Director for Latitude
NZ as well as the Brand Director for the Australian and New Zealand
region, with her earlier career including roles with Philips Royal
Electronics in the Middle East, Turkey and Africa.
I am delighted to welcome Caroline as our latest Future Director.

The Warehouse Group remains committed to the scheme and we
have derived enormous benefit from the various incumbents we have
had sitting around the table for the past seven years.
I attended our Investor Day in May – the first since 2017 – and was
heartened by the engagement of the attendees and their interest
in the Group. It was a good opportunity to update investors on the
progress achieved over the past four years and provide a deeper
understanding of our strategy.
Following last year’s Board performance review we have undertaken
a couple of 'pulse checks' with our external provider to monitor
progress on the areas we identified for improvement in the full
performance assessment.
The Board will be asking shareholders at our upcoming Annual Meeting
for an increase to Directors’ Fees. The last increase was in 2013 and
we have based our request on an independent report on comparator
companies and after canvassing a number of key shareholders on their
view of a proposed increment to the existing fees.
The year ahead
Uncertainty remains the dominant factor in assessing the year ahead.
The Group has traded well through the turbulence of FY21. However,
the COVID-19 environment continues to evolve – and it would be
premature to anticipate a return to full normality in FY22.
While New Zealand’s economy strengthened post the initial
COVID-19 lockdowns of 2020, the recent closure of the trans-Tasman
bubble, the impact of the Delta variant on one of our most important
trading partners and most latterly the incursion of the Delta variant
to New Zealand shores are yet to play out in terms of repercussions
on the retail and wider business sectors.
The sustainability of heightened consumer retail spending levels, the
impacts of catastrophic climate-related events, constraints on global
supply chains, and lack of clarity about the global roadmap out of
COVID-19 restrictions are among the factors that will challenge

The Warehouse Group in the year ahead.
We have demonstrated agility and courage in FY21 – and the record
result is a tribute to Nick Grayston, his leadership team and all our

team members. On behalf of the Board, I thank them most sincerely.
The Board has endeavoured to provide wisdom and steady
governance oversight during the upheavals and opportunities
and, most importantly, support the exemplary response our team
has demonstrated during this global pandemic. Guiding the
transformation of a retail business of the scale and reach of

The Warehouse Group in a trading environment impacted by tight
border controls, logistical disruptions and sudden lockdowns has
placed additional demands on Directors. I thank them for their
support, their energy and commitment throughout the year.
It is pleasing to be in a position to reward our shareholders for their
forbearance last year, with a return to the payment of dividends this
year. As always, the Board values your support and looks forward to
meeting with you at our Annual Shareholders Meeting in November.
Joan Withers – Chair

11
Integrated Annual Report 2021
CEO'S
REPORT
"The 2021 financial
year tested our ability
to adapt and flex amid
ongoing business
interruption."
More than a year after the onset of the global pandemic,
The Warehouse Group has seen the investment in the move to
agile working practices prove worthwhile by demonstrating that
it can innovate, adapt and deliver the services Kiwis need in the
context of massive disruption.
While New Zealand united around a strategy to keep COVID-19 out,
our teams aligned around a business strategy to fulfil customers’
demands for frictionless convenience.
Our strategic priorities - to build a customer ecosystem, define

the future customer experience and excel in retail fundamentals –
became magnified by the radically altered retail environment in
which we now operate. Our combination of local assets, global
partnerships, and a strong financial position meant we were able to
grow our business and expand our capabilities to deliver solutions

for customers in a year when they relied on us more than ever.
Changes made to the way we work and the investments in our future
have been guided by a core imperative: knowing what our customers
want and delivering it so that shopping with us is easier and more
rewarding than shopping with anyone else.
Refining our ways of working
Following a record half-year profit the business maintained its
momentum, achieving a 7.6% increase in sales revenue which
contributed to gross profit increasing 20% to $1.2b compared to

the prior year.
The 2021 financial year tested our ability to adapt and flex amid
ongoing business interruption.
In August 2020, we formalised our move to becoming a business
guided by agile principles within our Store Support Office, enabling

us to further strengthen our focus on anticipating and meeting
New Zealanders’ needs, however and whenever they choose to
shop with us.
As the first major retailer to go agile, there was no blueprint. We had
to make some compromises and manage our way through a lot of
unknowns. As a result, some pockets of historic inefficiencies and
old ways of doing things remained. We are now addressing these by
re-examining what constitutes 'must-do' and discretionary activities
by a process of 'zero-basing' the work. This is ongoing work that will
support our stated goal of becoming New Zealand’s most sustainable,
convenient and customer-first company.
In our stores, it was a year of implementing standardised processes
and adjusting the deployment of team members. In The Warehouse,
we changed the rostering and tasks of our teams so we had team
members on the shop floor when customers needed them most: in

the weekends and evenings.
In October 2020, after a period of consultation, about 750 roles
became redundant following a Group restructure.
That was tough for everyone – those who departed as well as those
who remained.
Since then, however, we have seen the employee net promoter score
(NPS) in our stores rise significantly, and it has been pleasing to see
that customer NPS has also increased over that time.
Building our ecosystem
We have started to deliver an ambitious programme of infrastructural
and technological innovation required to enable The Warehouse Group’s
ability to do good for all our stakeholders and excel for our customers.
We are building an ecosystem which allows customers to be
recognised and rewarded however and whenever they choose to
interact with us.
Part of our competitive moat is the physical locations that we have all
around New Zealand with most Kiwis no more than 20 minutes from
one of our stores.
As COVID-19 lockdowns restricted shopping behaviour, we ramped up
one-day Click & Collect at The Warehouse and scaled one-hour Click
& Collect at Noel Leeming.
Additionally, we accelerated our 'store-within-a-store' (SWAS) model,
integrating a further eight The Warehouse and Warehouse Stationery
stores. We will continue to co-locate our brands where it makes sense
to do so, while also investing over the next two years in renovating
approximately 40 stores in order to improve the omni-channel
shopping experience.
While it is unlikely that our total footprint will grow, there will be
targeted new store openings. During FY21, these included becoming
part of the new Ormiston Town Centre in South Auckland, where
we opened new The Warehouse, Warehouse Stationery and Noel
Leeming stores.
Across our store brands, we recorded a 5.0% increase in online sales,
making up 11.5% of total Group sales. We plan continued technology
investment to support this ongoing change in customer behaviour.
We have delivered the re-platforming of The Warehouse website,
nearly completed the re-platforming of the Noel Leeming site and

are now looking at enhancements to our mobile apps.

12
The Warehouse Group
Our new warehouse management system has gone live in our South
Island Distribution Centre and will be activated in the North Island
Distribution Centre after Christmas.
Over the next three years we will enhance our Master Data
Management, build and deploy enterprise management systems
which tie together a multitude of business processes and enable

the flow of data between them. We will also optimise our supply
chain systems and processes to include providing more options

to flex between speed and cost of online fulfilment options for
our customers.
We are broadening the scale and scope of programmes that deepen
the connection between our brands and our customers.
In addition to growing our existing loyalty programmes -
myNoelLeeming, Torpedo7 Club, TheMarket Club, and BizRewards –

we have successfully launched an app-first loyalty programme trial in
The Warehouse. We have now confirmed the rollout of a unified loyalty
programme across the Group, to be named Market Club, which will
include both a free and a subscription offer, with subscriptions offering
unlimited free shipping on millions of items. This will evolve to integrate
all existing programmes, giving even more benefit and utility to our
customers, with the rollout starting this calendar year.
Our loyalty programmes are already benefitting New Zealanders

by linking with offers from other major brands. In September
2020, TheMarket.com and Vodafone New Zealand entered an
exclusive partnership which rewards all Vodafone customers

with a free subscription to TheMarket’s loyalty scheme and its
membership benefits.
The shift to working from home forced people to grapple with
technical and IT issues that were formerly the responsibility of
workplace experts. Our services were in huge demand, resulting in
Noel Leeming Tech Solutions revenue increasing by 42%. In addition
to expanding the use of artificial intelligence, chat bots, and digital
humans to help solve customer problems, we trained more people

to be present on the shop floor and able to provide advice backed
by deep knowledge of our products and customers, supported

by technology.
Do Good – Kia Oha
One of our core values as a leading New Zealand-owned retailer is to
do good, acting as one team that stands up for our people, our planet
and our communities.
Sustainability has become increasingly important to our customers
and shareholders.
This year we launched the Sustainable & Affordable campaign which
highlights that customers can make more sustainable choices without
products becoming prohibitively expensive.
We think about value as being the synthesis between price and
quality, with today’s customers rejecting the trade-off between
affordability and sustainability - they are asking for both.
More than 11,500 of our products now carry sustainable attributes
which include certified sustainable materials or plastic-free
packaging. We are working with recognised programme providers
such as the Better Cotton Initiative and Forestry Stewardship Council
to ensure the products we purchase are better for our planet and

our customers.
Sustainable packaging guidelines are being rolled out across all new
products to reduce unnecessary plastic usage and improve packaging
recyclability, reusability, or compostability. Our Soft Plastics Recycling
Scheme in 29 of our stores allows our customers to drop their soft
plastics into recycling bins, diverting them from landfill. We have also
launched e-waste recycling capability in 16 of our Noel Leeming stores
and will roll this out to more stores as soon as possible.
For the past 17 years, The Warehouse has had an ethical sourcing
programme in place to protect the welfare of workers in its supply chain.
(You can read more on this in our Ethical Sourcing report on our website).
With our vision to become New Zealand’s most sustainable company,
we know we have to measure up.
That’s why each year we work alongside the Carbon Disclosure Project,
a not-for-profit charity that runs the foremost global disclosure system
for investors, companies, cities, states and regions to help them
manage their environmental impacts. In December The Warehouse
Group received a score of A- for 2020, increasing from a C in 2018 and
2019. With C being the current industry, regional and global average,
receiving a rating of A- puts us in the highest category of “Leadership”,
acknowledging we are currently “implementing current best practices”
in the fight against climate change.
CEO’s Report
"We think about value
as being the synthesis
between price and
quality, with today's
customers rejecting
the trade-off between
affordability and
sustainability - they
are asking for both."
To tackle family violence further, we have partnered with charities to
address some of New Zealand’s most pressing social issues. We have
enhanced support for team members experiencing family violence by
providing 15 days’ paid leave and three nights’ accommodation as well
as an online support tool under our Family Violence is not OK platform.
As part of our effort to help remediate period inequity in New Zealand,
The Warehouse offered $1 period products and gave one pack to
charity for every 10 sold. We partnered with The Period Place to offer
a new educational hub on thewarehouse.co.nz aimed at reducing the
stigma associated with periods. The Warehouse was also successful in
being appointed as an official supplier of period products to schools
through the government programme.
During the year we supported our team members through a

variety of efforts such as counselling, wellbeing initiatives and via
The Warehouse Group Foundation we provided support for those
facing financial hardship.
Further information about the many actions and commitments made by
the Group, our brands and our teams within our evolving ESG model can
be found on pages 46 to 48.
Performance
Each of our brands contributed to our record Group profit through
sales growth, improved operating margins, rising online sales, and
substantial Click & Collect fulfilment growth.
The Warehouse sales increased 5.8% to $1.8b as we continued to
improve products and refine our offer to customers during FY21.

13
Integrated Annual Report 2021
That’s despite the Auckland region experiencing 18.5 days of COVID-19
lockdown in August 2020 when stores were unable to trade as normal,
and heightened alert levels in March and June 2021. During the August
2020 lockdown The Warehouse sales declined 17.4% year-on-year.
Warehouse Stationery continued to build on its momentum from the
prior year, benefitting from the store-within-a-store model and the
emerging hybrid work practice of splitting days between the office

and home. We delivered another record profit with sales of $274.6m,
an increase of 2.2% on last year.
Noel Leeming had a stellar year with sales growth of 11.7% to $1.1b.

The 9.3% growth in Click & Collect fulfilment with most customers
choosing our one-hour service showed the extent to which people

have gravitated to online purchases since the COVID-19 lockdowns.
Both Noel Leeming and Warehouse Stationery benefitted from our
recent inclusion in the all of government procurement panel for
office supplies and Information and Communication Technology (ICT)
consumables.
Torpedo7 was our turn-around hero with total sales increasing 22.2%
on the same period as last year to $158.7m. Simon West and the team
have worked very hard to reverse profit losses and are now reaping the
benefits of scale and improved merchandising and operations. We see
additional growth opportunities as we continue to scale the business

to achieve coverage and critical mass across New Zealand.
TheMarket.com is another growth story, now with 2.5 million available
products and over 5,300 brands from more than 800 merchants. More
than 18.6m online sessions were completed in FY21, up 138% compared
to the same period last year. We are continuing to invest in this critical
part of our ecosystem as we move towards scale.
Ready to meet challenges
The pace of modern life in the digital age means that the biggest risk
to companies is becoming anachronistic and lacking the flexibility to
respond to the ever-increasing pace of change.
COVID-19 was an accelerant for us, and made it all the more imperative
to work our way through some difficult decisions.
Pressure creates diamonds but you must have the carbon to create
them in the first place. During FY21 we saw the benefits from the

plans that we laid prior to the pandemic, and the execution that
we are now delivering.
Product improvements, building our own private label and sourcing
capabilities, and price optimisation have all enabled us to extract

more value as well as manage costs.
We are now being rewarded for many of the things we have been
working on since we confirmed our strategy in 2017.
We acknowledge that a buoyant market contributed to our significant
increase in profitability. COVID-19 lockdowns spurred people to focus

on the quality of their home environments which has benefitted
consumer electronics and homeware in particular.
A nearly 27% increase in New Zealand’s minimum wage since 2017
means there is more disposable income flowing into the economy

and some of that has benefitted retail.
When New Zealand reopens its borders there is the potential for growth
rates to contract. However, we have made good use of these unusual
times to get our house in order and have constrained costs where
possible to be able to protect profits in that eventuality.
We have long anticipated that an online behemoth like Amazon would
enter the local market. Although they do not have a distribution centre
here yet, they have three in Australia and are building a fourth so it’s
only a matter of time. They have formally launched in New Zealand
where they are already the third most trafficked website without a
physical presence.
It is vital that we become a modern, vigorous and competitive option
so that The Warehouse Group can retain our 11,000 people employed
within New Zealand instead of losing those jobs overseas.
Further modernisation of our supply chain will be a major focus over

the next few years. COVID-19 has created global supply challenges
and we need to stay ahead of these.
Last Christmas we reduced our focus on seasonal product and put more
effort into basic continuity product. That meant we left some business on
the table but we also reduced risk through better inventory management.
The worst case scenario is seasonal product arriving too late to sell.
A shortage of shipping containers in the right place at the right time to
carry manufactured goods from source to destination is a symptom of
the havoc the pandemic has wrought on international supply chains.

As a result, freight costs are rising which will inevitably translate into
higher prices for customers.
Issues like these will continue to challenge us. By staying true to our
strategy, we will deal with them – and I am confident we have the leadership
strength and commitment from our people to do so and prosper.
We farewelled three members of the leadership team over the course
of the year.
In October 2020 Chief Operating Officer Pejman Okhovat resigned to
take up a senior executive position with an overseas retailer. Pej joined
The Warehouse Group in 2005 and played a key role in improving

the performance of The Warehouse and Warehouse Stationery, and
enabling The Group to trade through COVID-19 during the Level 4 and

3 lockdowns in 2020.
Chief Transformation Officer Scott Newton, who led our transformation
over the past three years, also decided it was time to move on, having
made a significant contribution to reducing complexity, driving
performance improvements and strengthening The Warehouse Group’s
health and capabilities.
In September 2021 Chief Sales Officer Tim Edwards resigned. Tim has
been with the Group since 2009 in the roles of CEO Noel Leeming
and CEO Torpedo7 prior to taking on his current position. He played
a key role in the Noel Leeming brand's significant growth, achieving
over $1b in annual sales in FY20, as well as growing the Services and
Commercial businesses.
We wish Pej, Scott and Tim all the best for the future.
Our executive leadership team has continued to become leaner and
more agile. At the next leadership level we have grown our diversity
considerably with women now holding 50% of these senior roles.
A successful retail business runs on the energy, commitment and skills
of its people.
By living our values, everyone working at The Warehouse Group
brings us closer to our vision of being New Zealand’s most sustainable,
convenient and customer-led company.
I want to thank all of our team members for their resilience, dedication
and courage in embracing the changes we have made, and those we
must continue to make.
Nick Grayston – CEO

14
The Warehouse Group
Our Purpose, Vision & Values
OUR
PURPOSE
Every day, we're living our purpose by
transforming our business to exceed

our customers' expectations and have
a positive impact on our communities.
Helping Kiwis live better
every day

15
Integrated Annual Report 2021
Providing a customer-first offering
powered by data, a frictionless
on-demand shopping experience,
delivering an ethical and sustainable
performance for our shareholders.
We put the customer first in
everything we do
Think customer
Whakaarohia te kaiutu
We are one team, standing up
for our people, our planet
and our communities
Do good
Mahi i nga mahi pai
We walk the talk and
make things happen
Own it
Kia haepapa
OUR
VALUES
OUR
VISION
to build New Zealand’s
most sustainable,
convenient and
customer-first company.

16
The Warehouse Group
Our Ecosystem
OUR
ECOSYSTEM
We’re building a customer-centric ecosystem
for New Zealand that enables frictionless shopping
experiences and creates greater customer
value over time.
Our unique combination of local assets, global
partnerships and our strong financial position means
we can further scale our business by investing in
the right capabilities to serve our customers
more holistically.
We now have strong ecosystem foundations in place
with an established physical footprint and market-
leading digital assets. We have confirmed the rollout
of a unified loyalty programme across the Group as
'Market Club' and 'Market Club+', which is starting
its rollout with The Market and The Warehouse this
calendar year. We have also become a cornerstone
strategic investor in Zoom Health, the operator of
Zoom Pharmacy, because we believe together we
can make a real difference to our customers' welfare
through a shared vision to offer convenient and
affordable access to healthcare to all Kiwis.
Our efforts and innovations have already delivered
significant omni-channel capabilities across our stores,
services, supply chain, and our mobile apps and
online sites. These are already improving the customer
experience, including the expansion of range on
The Market to over 2.5m active product stock keeping
units (SKUs). We continue to invest in being sustainable
and affordable in everything we do, and this vision
underpins our ecosystem at every stage.
Further improvements will make customer shopping
journeys with our family of brands faster, easier and
more personalised through unified data, platforms
and people – while remaining focused on the
fundamentals of delivering exceptional value and
new assortments with better customer fulfilment
and payment options in store and online.
S
E
R
V
I
C
E
S
Our services help
customers and
businesses in
their daily lives

We’re focused on making our
shopping experiences easy and
seamless – in stores and online
Omni-Channel Shopping

17
Integrated Annual Report 2021
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Zoom Health
With more
ways to make
their budgets
work for them
We're focused
on offering
convenient
and affordable
access to
healthcare
to all Kiwis

18
The Warehouse Group
Our Brands
OUR
STORES
252
stores across
New Zealand
(incl 25
SWAS)
Plus a leading online marketplace,
websites and mobile apps
90702171

19
Integrated Annual Report 2021
LOVE THE
EVERYDAY

FOR LESS
The Warehouse is New Zealand’s largest general
merchandise retailer with a presence in virtually
every Kiwi home and community.
Ensuring that our products and services keep pace with
the expectations of those we serve and our focus on
implementing new ways of working to meet those needs
and expectations contributed to The Warehouse’s retail
operating profit growth.
Updates to our store operating model and changes to
rosters have been successful, with team member rosters
now more closely aligned to when our customers are
shopping. Our customer and employee survey scores have
improved, showing both our customers and our team are
embracing the changes.
During the year we deployed a new picking and order
location app to better equip our team members to
efficiently fill Click & Collect orders, which have increased
37.9%. We now have dedicated Click & Collect counters
in some of our stores, conveniently located at the front to
facilitate efficient pick-ups.
Our store footprint continues to evolve, with the latest new
generation SWAS store opening in Ormiston Town Centre,
South Auckland, including a complete garden centre, a
dedicated new-look homeware range space, a full print and
copy centre and a dedicated Click & Collect counter.
Our 40-in-2 programme will see approximately 40 of our
stores nationwide refurbished and refitted with an updated
store format and fixtures and fittings, with works due to be
completed by 2023.
We are committed to becoming one of New Zealand’s most
sustainable companies while continuing to deliver great
value to our customers. Our efforts at The Warehouse – from
the location of our stores, to our ethical sourcing programme,
sustainable initiatives and community partnerships – are
moving us towards achieving this goal.
We have made significant improvements to a number of
our products, including removing plastic packaging from
our ranges and replacing with more environmentally
friendly alternatives.
During the year we expanded our soft plastics recycling
scheme to another 13 stores across our network. Since the
programme’s launch in The Warehouse stores in October
2015, close to 15.5 million individual units of soft plastic
have been collected and diverted from landfill. That equates
to nearly 70 tonnes.
Electric trucks were introduced for customer deliveries
of larger items to locations within a 220km round trip
radius from our distribution centres in Auckland, Hamilton,
Tauranga and Christchurch. We have also increased public
access to electric vehicle (EV) charging with the expansion
and upgrade of our charging station infrastructure, now
with 28 store locations nationwide.
Our team’s passion for our customers and the community
continues to be a strong driver of our support to a number
of organisations throughout the year, including Variety -
the Children’s Charity, The Salvation Army, Women’s Refuge
and Duffy’s Books in Homes.
Following the introduction of our affordable range of $1
period products, The Warehouse has teamed up with
The Period Place to launch collection boxes where
customers can donate period products directly to local
community groups to reach people in need. For every ten
sold, The Warehouse also donates a pack to its community
partners – Women’s Refuge and The Period Place. More
than 99,000 period products have been donated through
the initiative already.
Our Brands | The Warehouse

20
The Warehouse Group
Our Brands | Noel Leeming
THE AUTHORITY IN APPLIANCES,
TECHNOLOGY & SERVICES
Highlights for the year include a record operating profit of
$64.9m, record sales of $1.1b, an increase in market share,
and a lift in employee and customer satisfaction ratings.
These successes reflect a dedication to sticking to our
strategy and delivering exceptional customer service
through our high-performing, passionate experts and
end-to-end services solutions.
As a result of adapting to changing trading conditions during
COVID-19 alert levels, one-hour Click & Collect is now a
permanent offering for customers, with dedicated Click &
Collect bays at most stores making pick-up quick and easy.
We have continued to consolidate our store footprint,
closing stores at Manukau Westfield, Tokoroa, and Hunters
Plaza in Papatoetoe, and opening our innovative store at
Ormiston Town Centre in South Auckland, built on the
design of our successful Newmarket store.
Innovating for our customers is a key reason why Noel
Leeming is New Zealand’s number one consumer
electronics retailer. Our Noel Leeming services offering
continues to grow – 42% up on FY20’s services results.
Key customer experience capabilities have been unlocked
including the ability to book our Tech Solutions services
at point of sale, the introduction of a tiered capability
framework for team member development and a full team
redesign, setting up the services business for further growth
in the years ahead.
The Noel Leeming sales app provides us with a point of
Noel Leeming helps Kiwis enrich their lives through
technology. We pride ourselves on offering Kiwis
global and home brands, coupled with innovative,
world-class service.
difference in the retail environment in New Zealand – helping
customers on the shop floor, improving the overall customer
experience, showing our authority in demonstrating
technology and increasing our sales conversion.
Another step forward in innovation is the completed roll-out
of e-ticketing across all Noel Leeming stores, removing all
paper ticketing from stores. We are proud to be the first
retailer in Australasia to achieve this, enabling live pricing
in all stores. Looking ahead, the next development will be
the inclusion of live product locations on store maps for
customers through the Noel Leeming mobile app, as well
as hourly deals and competitive price reactions.
In partnership with TechCollect NZ, Noel Leeming now offers
free e-waste collection at 16 stores nationwide, with plans
for this programme to be extended across all Noel Leeming
stores. We hope this programme will help New Zealand divert
a significant amount of e-waste from landfills, and recover
precious resources to be recycled.
The Warehouse Group Business (TWGB) was formed in 2019
to allow business and commercial customers to procure
a wide range of products across our Group companies
including technology, stationery, appliances, furniture,
sporting, outdoor, apparel, FMCG and many more categories,
through one central supplier.
Since its inception, TWGB has increased the Group’s
commercial sales revenue by 24.1% and exceeded $500m
in group commercial sales. Key highlights include 5,831
lunchbox units to 214 schools participating in the Ministry
of Education school lunch programme, and 300,000 period
products distributed to schools in partnership with the
Ministry of Education.

21
Integrated Annual Report 2021
Business made easy and doing your best work are
the principles that drive Warehouse Stationery.
The brand caters to Kiwis from all walks of life who
want to stock up on business items, school supplies,
or materials for creative projects such as photography
or craft. Warehouse Stationery is a leading supplier for
small businesses in New Zealand, and has benefitted
from our recent inclusion in the All of Government
Procurement Panel for office supplies ICT (information
and communication technology) consumables.
In FY21 our retail operating profit of $34.3m increased by
to 12.5%, sales were up from $269m to $275m and Click &
Collect sales increased to 64.4%. Sales received a strong
boost from changing work habits. As more Kiwis now
work from home, they are using Warehouse Stationery to
purchase their office furniture and essentials such as ink,
paper and printers.
Our Print and Copy Centre facilities continued to show
increased demand, with Click & Collect services growing to
6% of total sales from 3% last year. The uptake of our Tech
Solutions service also grew, as more customers had to deal
with technology challenges in their home workspaces.
Throughout the year we continued to refine our
Warehouse Stationery offer by moving seven standalone
stores to within The Warehouse stores, giving customers
DO YOUR
BEST WORK
more choice under one roof. We also opened a purpose-
built store-within-a-store at Ormiston. This format has
proven to be very successful and we will continue our
store-within-a-store concept in the coming year. We plan
for another four to be moved within the first half of FY22.
Our standalone stores continue to provide our customers
with the wide variety of services and essentials they have
come to trust.
This year we further expanded our sustainable range
of products and services. These included Forest
Stewardship Certified notebooks and wheat paper
school supplies, as well as wheat photocopy paper in
our business range. We also continued our ink, toner
and drum cartridge recycling programme.
Our Warehouse Stationery team members supported a
variety of causes over the year including the Blue Shirts
in Schools programme which provides six weeks of work
experience and guidance to school students wanting to
understand more about retail as a career choice. We also
worked with The Salvation Army to equip children in need
with back-to-school essentials through our in-store Add a
Dollar campaign, which is now in its 11th year.
Our Brands | Warehouse Stationery

22
The Warehouse Group
SEE YOU
OUT THERE
Torpedo7 is one of New Zealand’s leading adventure
sports stores offering a unique selection of bikes,
outdoor equipment, water gear, clothing, snow and
fitness products and technology to guide you in
your next adventure.
Torpedo7 continues to make good progress year-on-year,
with both sales and gross profit growth, 22.2% and 102.3%
respectively.
We have succeeded in turning around our business
performance to a position the brand can profitably grow
from. Key to this success has been the rationalisation of
range and growth of Torpedo7 branded goods. Product
sourcing has moved to an in-house specialist team, focused
on developing our Torpedo7 brand of products and apparel.
Our team members are also keen outdoor enthusiasts and
avid users of the products we sell, ensuring they are well
positioned to give our customers the best and right advice
on gear for whatever outdoor activity or adventure our
customers are participating in.
Strong demand for adventures was generated by our
customers need to continue to explore, just more locally
- reawakening the realisations that we live in the world’s
best adventure playground. Proudly on a journey to a more
sustainable offering, we have removed all plastic packaging
on Torpedo7 branded bikes with packaging now being
100% cardboard. Building on that achievement, our goal in
2022 is to have 30% of our Torpedo7 branded apparel be
manufactured with recycled fibres. We have also added
low-emission lighting in stores and a 100% hybrid vehicle
fleet to our short-term sustainability goals.
In FY21 we opened a spacious new 1,200sqm store in Napier
which features a refreshed look and feel to acknowledge
the local environment. Moving forward, Torpedo7 growth
initiatives will include opening new stores in Whangārei,
Invercargill and Wellington in 2022, and other sites of
interest have been identified for future growth.
We have now streamlined our online fulfilment capabilities
by moving to one dedicated fulfilment centre, improving
our customer experience.
Torpedo7 Club continues to drive engagement for our
customers and a new partnership with the AA brings
more benefits to our members. We will continue to drive
engagement with our Club members through our club
offers and partnerships.
Torpedo7’s passion for the outdoors and our local
environment has provided support through partnerships
with Sustainable Coastlines, joining with them to clean up
our shorelines, and with Hillary Outdoors Education Trust
by donating $67,000 to support programmes run by them
throughout the year.
Our Brands | Torpedo7

23
Integrated Annual Report 2021
GET IT
ALL DONE
With millions of products from more than 5,300 of
the world's most desirable local and international
brands, TheMarket.com is the place to get it all done.
Since launching in 2019, TheMarket.com is New
Zealand's fastest growing e-Commerce platform with
almost 397,000 active customers with the marketplace
customer segment growing fastest at 207% YoY, adding
147,000 customers in FY21.
Assortment has grown YoY with over 2.5m products
available. Traffic to the site and consumer sales have
increased with a shift from stores to online. This has
been accelerated by COVID-19, with momentum
continuing to grow with more range, more partners and
more customers joining the platform every week.
TheMarket Club subscription service now has over
50,000 members, offering subscribing customers free
shipping on eligible items from local and international
Our Brands | The Market
stores, VIP access to exclusive offers and promotions,
priority customer service and eligibility for benefits and
deals through exclusive partners.
Throughout the year, TheMarket.com has partnered
with major brands and events, resulting in increased
brand awareness and was a naming sponsor and the
official retail partner of Emirates Team New Zealand’s
defence of the 36th America’s Cup in Auckland in 2021.
TheMarket.com also partnered with Vodafone, offering
free access to TheMarket Club to Vodafone’s Club
members.
In 2020 TheMarket.com launched its Fulfilment by
Market service which provides end-to-end solutions
for brand owners where inventory is held and fulfilled
by TheMarket.com on their behalf. Brand owners like
L'Oréal are using this service, selling all their major
brands through their store on TheMarket.com.
TheMarket logoTheMarket Point
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24
The Warehouse Group
Environment, Sustainability & Ethical Sourcing
DRIVING
TOWARDS
A MORE
SUSTAINABLE
FUTURE

25
Integrated Annual Report 2021

26
The Warehouse Group
The Warehouse Group’s teams, leadership and Board
are serious about achieving our vision to become
New Zealand’s most sustainable retailer.
Ongoing initiatives which include supporting team
members’ wellbeing and diversity, decarbonising
energy use, and giving a hand up to the communities
in which we operate are detailed in our Integrated
Report. During FY21, we added programmes that are
making a difference in the lives of our communities
and key stakeholders.
Social: Period Equity
The Warehouse has partnered with The Period Place
with the goal of eliminating period inequity in Aotearoa
by 2030. The partnership is an evolution of the existing
work by The Warehouse to recognise that of around
1.2 million menstruators in New Zealand, an estimated
700,000 experience barriers to accessing period
products. As a result of this issue, approximately 8%
of students are missing days at school.
In FY20 we started providing a $1 range of period
products, with one pack for every ten sold donated
to Women’s Refuge and The Period Place to reach
those in need. By the end of FY21 more than 99,000
period products were donated.
We have also provided free period products to all
bathrooms across the Group’s stores, distribution
centres and support offices because people can get
caught short. Together with The Period Place, we
rolled out donation bins across 26 The Warehouse
stores where customers can donate period products
Environment, Sustainability & Ethical Sourcing
ENVIRONMENT,
SUSTAINABILITY
& ETHICAL
SOURCING
which are then distributed to local community groups
who support people with barriers to access - such as
cost, vulnerable living situations and education.
Alongside the donated products, educational
material from The Period Place about period
cycles and types of period products available was
provided. The Period Place relationship helped us
further reduce barriers by getting information to
community groups and hosting a podcast series and
portal on our The Warehouse website. By promoting
understanding that menstruation is a normal
biological process we aim to help people manage
their period with confidence.
Work in this area will continue into FY22 with further
products scheduled to be launched.
Wellbeing: Family Violence is Not OK
The Warehouse Group has had a Family Violence is
Not OK policy in place since 2015. In FY21 the Group
updated its policy to reflect users’ feedback. Initially
developed in conjunction with Women’s Refuge,
the policy was designed to provide those affected
by family violence with ten days paid leave and the
perpetrators of violence with five days unpaid leave.
The updated policy now offers 15 days of paid leave
in addition to three nights’ accommodation for those
impacted by family violence.
During FY21 training associated with the policy was

27
Integrated Annual Report 2021
digitised allowing our team members to more easily
access the material, which is designed to help them
understand what family violence is and to provide
guidance on where to seek help. It also supports
managers with information about what to do if a
team member is experiencing family violence.
During the year the Group also supported Women’s
Refuge by donating $250,000 from the proceeds
of our July toy sale. The funds went to Women’s
Refuge’s Kids in the Middle Programme which
supports children impacted by family violence.
Sustainable attributes: Increasing the
sustainability of our product range
Providing customers the ability to choose more
sustainable products gained a significant focus
in FY21, with the number of products with a
sustainable feature growing to a peak of around
11,500. That number will continue to rise as our
efforts in this area continue.
As a business we are prioritising the delivery of
product packaging with reduced plastic, improved
recyclability and reusability. Traditionally plastic
packaging is being replaced by cardboard or fabric.
We have also increased our use of certified materials
sourced through global sustainability programmes
such as the Better Cotton Initiative, the world’s
largest cotton sustainability programme, and the
Forest Stewardship Council, a non-profit organisation
that promotes responsible management of the world’s
forests. Materials sourced from these programmes are
prevalent in our home and apparel ranges.
We have been innovating product ranges, including
with the introduction of sustainable materials such
as recycled polyester, a durable material made from
recycled used plastics which featured in our men’s
winter puffer jackets and women’s winter bathrobe,
as well as in a range of pillows.
Waste reduction: Trialling circularity initiatives
We are committed to making recycling and waste
reduction easier and more accessible for Kiwis.
Post-consumer waste was a focus and we expanded
the number of stores offering soft plastics recycling
bins in store to a total of 29, including our first
stores to offer the scheme in the South Island and
Hawkes Bay region.
We launched an e-waste collection pilot programme,
in partnership with TechCollect NZ, at 16 of our Noel
Leeming stores. This programme allows consumers
to drop their used electronics into a Noel Leeming
store for recycling at no cost. This service is funded
by TechCollect NZ’s members such as Canon New
Zealand, Dell, Dynabook, HP, Microsoft and Toshiba.
The lessons from TechCollect NZ’s programme
partnership with Noel Leeming will be used to inform
the best options for an ongoing regulated e-waste
product stewardship system in New Zealand.
We are also trialling the recycling of hard-to-
recycle waste at three of our The Warehouse stores.
Partnering with recycling company TerraCycle
NZ and leading global brands including Colgate,
Schwarzkopf, Zuru and NESCAFÉ, the trial offers
customers a way to dispose of waste which is not
processed through kerbside recycling collections.
Examples include toothpaste tubes and caps,
toothbrushes, hair colouring packaging (including
bottles, tubes and lids), NESCAFÉ Dolce Gusto coffee
capsules and Zuru Bunch O’ Balloons.

28
The Warehouse Group
Integrated Report
INTEGRATED
REPORTREPORT
R
E
T
A
I
L

V
A
L
U
E

C
R
E
A
T
I
O
N

P
R
O
C
E
S
S
Our People
Create a dynamic purpose-driven
organisation that is the best place to
work, with a high-performance, agile
culture focused on the health, safety,
wellbeing and development of our people.
Our Customers
• NPS up +7.5 points to 76.6
• SKU reduction of 18.5% for TWL and 12.6% for WSL
• Online sales 11.5% of total sales
• Click & Collect sales growth 21.1%
• Stock turn 5.3 times

Our Relationships
We want to build strong relationships
with our communities and our
stakeholders to deliver sustainable
value and positive change.
Our People
• eNPS +17 (Aug 2021)
• Women in 44.4% of senior leadership roles
• Gender pay equity 89.0%
• Severity 1 Frequency Rate (SV1FR) decreased by 34.5%
• Incidents closed within 10 days performance 94.0%

Our Customers
Our expertise in understanding our
customers allows us to keep them
at the centre of all that we do.

Financial Capital
We need to ensure efficient utilisation of
financial capital to compete and enable
growth, provide resilience and deliver
consistent and strong total shareholder return.
Financial Capital
• Share price growth of 66.2% in FY21
• TSR 74.9%
• Liquidity of $490.5m
• Final dividend 17.5cps, Full dividend
35.5cps
Our Networks
Our aim is to build a world-class omni-channel
retail network that leverages physical and digital
assets to deliver customer needs and wants in
an efficient and innovative way
.
Our Networks
• 252 stores including 25 stores-within-a-store
• 88.0% of overseas sourced products through
three offshore offices
• DIFOT to store 98.0%
• DIFOT home delivery: 91.7% for The Warehouse
and 93.4% for Warehouse Stationery
Our Environment
• 11,500 SKUs carrying a sustainability attribute,
accounting for over $176m in sales
• Diverted 77.9% of operational waste from landfills
• Decreased Scope 1 &2 emissions by 2.7% compared to FY19
• 60% of the Group’s passenger fleet is full EV
Our Environment
It is our goal to embed our Sustainable & Affordable platform
throughout our ecosystem and accelerate the Group’s
transition to a sustainable, circular, and low-carbon future.
Manufactured
Capital
Social and
Relationship
Capital
Natural
Capital
Intellectual
Capital
Financial
Capital
Human
Capital
>
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Our Relationships
• Raised $4.3m for New Zealand charities and communities
in FY21. $75.5m since 1982
• 856 student enrolments in The Warehouse Group’s
Gateway programmes
• 1,744
suppliers completed e-learning lessons on
labour and environmental management topics
INPUTS
RETAIL VALUE CREATION PROCESS
This is the third year The Warehouse Group
has reported under Integrated Reporting.

29
Integrated Annual Report 2021
R
E
T
A
I
L

V
A
L
U
E

C
R
E
A
T
I
O
N

P
R
O
C
E
S
S
Our People
Create a dynamic purpose-driven
organisation that is the best place to
work, with a high-performance, agile
culture focused on the health, safety,
wellbeing and development of our people.
Our Customers
• NPS up +7.5 points to 76.6
• SKU reduction of 18.5% for TWL and 12.6% for WSL
• Online sales 11.5% of total sales
• Click & Collect sales growth 21.1%
• Stock turn 5.3 times

Our Relationships
We want to build strong relationships
with our communities and our
stakeholders to deliver sustainable
value and positive change.
Our People
• eNPS +17 (Aug 2021)
• Women in 44.4% of senior leadership roles
• Gender pay equity 89.0%
• Severity 1 Frequency Rate (SV1FR) decreased by 34.5%
• Incidents closed within 10 days performance 94.0%

Our Customers
Our expertise in understanding our
customers allows us to keep them
at the centre of all that we do.

Financial Capital
We need to ensure efficient utilisation of
financial capital to compete and enable
growth, provide resilience and deliver
consistent and strong total shareholder return.
Financial Capital
• Share price growth of 66.2% in FY21
• TSR 74.9%
• Liquidity of $490.5m
• Final dividend 17.5cps, Full dividend
35.5cps
Our Networks
Our aim is to build a world-class omni-channel
retail network that leverages physical and digital
assets to deliver customer needs and wants in
an efficient and innovative way
.
Our Networks
• 252 stores including 25 stores-within-a-store
• 88.0% of overseas sourced products through
three offshore offices
• DIFOT to store 98.0%
• DIFOT home delivery: 91.7% for The Warehouse
and 93.4% for Warehouse Stationery
Our Environment
• 11,500 SKUs carrying a sustainability attribute,
accounting for over $176m in sales
• Diverted 77.9% of operational waste from landfills
• Decreased Scope 1 &2 emissions by 2.7% compared to FY19
• 60% of the Group’s passenger fleet is full EV
Our Environment
It is our goal to embed our Sustainable & Affordable platform
throughout our ecosystem and accelerate the Group’s
transition to a sustainable, circular, and low-carbon future.
Manufactured
Capital
Social and
Relationship
Capital
Natural
Capital
Intellectual
Capital
Financial
Capital
Human
Capital
>
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Our Relationships
• Raised $4.3m for New Zealand charities and communities
in FY21. $75.5m since 1982
• 856 student enrolments in The Warehouse Group’s
Gateway programmes
• 1,744
suppliers completed e-learning lessons on
labour and environmental management topics
RETAIL VALUE CREATION PROCESS
FY21 OUTPUTS
This Integrated Report describes our retail business model and how our resources contribute to our goals and vision to
build New Zealand's most sustainable, convenient and customer-first company. These are demonstrated through the
six capitals shown below and detailed in this report.
The aim of this report is to outline our focus areas, priorities and progress for each year, and targets for the future.
This Integrated Report has been prepared using the International Integrated Reporting Council’s (IIRC) Integrated
Reporting Framework.
In addition, in 2021 we have taken a further step into how we determine what Environmental, Social and Governance
(ESG) areas are material to The Warehouse Group, and we have reported on current ESG initiatives and achievements,
as well as relevant economic impacts, through adopting the Global Reporting Initiatives (GRI) reporting framework.
Refer to pages 103 to 106 of this Annual Report for further information on the GRI reporting framework, The Warehouse
Group’s materiality assessment and the GRI content index.
The Group’s Board and Management have established internal preparation and quality control processes to ensure
the quality and integrity of this report. We have not sought external audit or assurance for the non-financial information
contained throughout this Integrated Report or on the GRI content of this report with the exception of our carbon
emissions and energy consumption which are audited by Toitū Envirocare.

30
The Warehouse Group
Risk & Materiality

31
Integrated Annual Report 2021
RISK &
MATERIALITY
Risk management
The Group is committed to the ongoing roll out of its
Enterprise Risk Management (ERM) Framework. This
includes continuing to embed the ERM Framework into
the wider business and enhancing risk management
processes with agile thinking. This assists in attaining
effective risk management across the organisation and
allows for the exploration of opportunities as they present.
The Board sets the Group’s risk appetite, which provides
informed decision making in the risk management
framework and delivers parameters within which the
business manages risk.
Our risk management framework embraces agile
practices which allows the Group to identify and manage
risk and provides it with a mechanism to adapt and
respond to an ever changing environment. The Group
has assumed a blended approach to risk management
which considers both traditional risk management and
agile structures. This blended approach allows the Group
to be nimble in risk management and aligns with the
Group's agile approach.
The Group's ERM Framework is aligned with best practice
and includes:
• A consistent approach to identifying and managing
risk;
• Supporting the achievement of the Group's strategic,
financial and operational goals by managing risks;
• Encouraging an open and transparent culture where
risk discussion and awareness is supported;
• Enabling better decision-making practices through
the adoption of agile thinking to help support risk
informed choices, prioritises actions and distinguishes
between alternative courses of action; and
• Encouraging an understanding of the risk
environment within which the Group operates.
The Group acknowledges that risk management is
important to all aspects of its activities and is the
responsibility of every team member. Our leaders
have a particular responsibility to appraise their risk
environment, to put in place appropriate controls and
to monitor the effectiveness of those controls.
The Group, as part of its ongoing risk governance
programme, operates an Enterprise Risk Management
Committee, which comprises senior leaders from across
the Group. The Committee meets every two months to
ensure there is a balanced view of risk and that critical
risks are understood, reviewed, appropriately managed
and reported.
The Audit and Risk Committee receives reports from
internal audit and other professional service providers.
The Group has identified its key risks which, if realised,
would materially impact the success of the business.
These risks include enterprise and system failure,
global logistics and trading disruption, sourcing and
retaining skilled talent, increased global competition,
environmental risk, and failure to automate and
increase productivity.
Materiality
Materiality in the six capitals is different from financial
materiality in the financial statements. It is driven by the
risk appetite settings, and the specific outcomes and
strategies within each capital. A material improvement
in our environmental reduction outcomes, for example,
may be different this year compared to other years
depending on the starting position.
Building on an improvement may mean we have a higher
materiality for change than if we were attempting to
arrest a declining performance. Materiality is therefore
relative to every strategy and metric in each capital and
is used to filter what is reported and what is not. The
Integrated Report is not the definitive or last word that
the organisation has to say on a given topic, it is the
material performance report against those elements in
the capitals that we are trying to influence or improve.
This year we have taken a further step in our overall
reporting and in particular in our Environmental,
Social and Governance (ESG) targets and initiatives by
adopting the Global Reporting Initiatives (GRI) reporting
framework and materiality principles. This will enable
us to identify and prioritise areas that substantively
influence the assessments and decisions of stakeholders
or have a significant ESG positive or negative economic,
environmental and/or social impact towards achieving
our goals of sustainable development. This report has
been prepared in accordance with the GRI Standards:
Core option.

32
The Warehouse Group
Our Networks
Our aim is to build a world-class customer ecosystem, powered
by first-party customer data, a loyalty platform that rewards and
engages customers in the ways most important to them, and a
network with convenient locations throughout New Zealand that
makes it easy for customers to shop whenever and however
they choose.
To deliver on this, we have three key areas of focus:
• Build a world-class customer ecosystem and retail network
• Our supply chain network
• Our enterprise systems, processes, and data.
Building a world-class customer ecosystem and retail network
Going forward, modern retail is all about customer ecosystems. They
better leverage assets and investments, they create stronger customer
relationships, and they create new platforms for business growth. With
stores that are conveniently located throughout New Zealand, improving
our store experiences while increasing our digital footprint has been a
key focus. We have made significant improvements in our retail property
portfolio including increasing The Warehouse and Warehouse Stationery
store-within-a-store (SWAS) format. In FY21 we integrated eight additional
Warehouse Stationery within The Warehouse stores, bringing our total
SWAS to 25 at the end of FY21 (FY20: 17).
This year saw a considerable focus on store improvements – in FY21,
32.6% (FY20: 22.9%) of capital expenditure was allocated to asset
development of our stores, including new stores and upgrading existing
stores. We strive to ensure our stores offer excellent customer experience
with layouts which are best suited to customer shopping habits.
Total Group store foot traffic increased 0.4% in FY21 compared to the same
52 weeks in FY20, excluding any lockdown periods and comparing the
same weeks year-on-year. Foot traffic does not include separate foot traffic
into Warehouse Stationery SWAS stores, this is included in The Warehouse
figure. This is a pleasing result considering our total stores (excluding SWAS
stores) decreased from 240 stores in FY20 to 227 stores in FY21.
Build a world-class
omni-channel store
and online network
OUROUR
NETWORKS
Based on stores (excluding SWAS
stores) which decreased from
240 stores in FY20 to 227 stores
in FY21, and excl. COVID-19
lockdown periods in both years
Of capital expenditure
on asset maintenance
(FY20: 22.9%)
TheMarket.com – the Group’s online marketplace – further expanded its
offerings with over 2.5 million available products from more than 5,300
of the world’s most desirable local and international brands.
Supply chain network
It has been a challenging year as the COVID-19 pandemic changed
demand patterns and created new pressures that tested global supply
chains to the limit. The pandemic’s impact was further exacerbated
by port and local transport challenges in New Zealand. Despite these
disruptions, the Group’s brands have performed well keeping average
store availability over 90.0% with store delivery in full on time (DIFOT)
of 98.0%. Having teams located at source, strong supplier relationships
and our agile way of working were key factors in allowing us to respond
quickly as circumstances changed.
In FY21 we extended our customer DIFOT measurement to include the
receipt of orders by customers, recognising the importance of last mile
delivery in overall customer experience. We achieved a DIFOT (delivery
and Click & Collect) of 91.7% for The Warehouse and 93.4% for Warehouse
Stationery against our target of 95.0% - up significantly on FY20 which
was greatly impacted by COVID-19 lockdowns across the country.
We have worked hard to improve the Click & Collect and delivery
experience. We launched same-day Click & Collect for The Warehouse,
made instore availability viewable on the website and mobile app, launched
new customer QR code functionality to speed up collections, and built a
picking and location management app for the Fulfilment Centre teams.
From an integrated supply chain perspective, we made substantial
progress scoping our end-to-end transformation programme, standing
up a dedicated customer demand and fulfilment agile tribe to support
the work, and delivering some quick wins. These included capacity
and peak trade planning and stock keeping unit (SKU) segmentation to
enable better stock flow. Work has also begun on long-term strategic
enablers such as network optimisation, unified central planning, and
transport optimisation with our supplier partners.
Including 227 standalone
and 25 SWAS, LY 257
stores - 240 standalone
and 17 SWAS
0.4%
increase in store
foot traffic
(FY20: 1.5%)
252 Stores
32.6%

33
Integrated Annual Report 2021
(FY20:
decreased 8.7%)
Supply chain network
Enterprise systems, processes and data
The Group operates a number of businesses that use different
Enterprise Resource Planning (ERP) systems and processes. Our
strategy is to provide an end-to-end operational platform of systems
and common processes through which the brands can accelerate their
points of competitive differentiation. We have started a major systems
and process modernisation investment to drive efficiency and common
processes across the Group, supported by a modern technology stack
that enables migration from batch to real-time financial operations
which is expected to be completed in early FY23.
Our expertise in our systems is focused on integrating, simplifying and
standardising all back-office business processes and support systems,
across order-to-cash, procure-to-pay, statutory and management
accounting.
During the financial year we achieved the following milestones in our
enterprise systems and processes roadmap:
• Completed designing a back-office finance solution to replace
multiple legacy ERP systems
• Completed designing an integrated inventory system for real-time
stock on hand to meet the demands of store and online systems
for "available to sell” and “available to promise”
• Established a cloud-based, Master Data Management (MDM)
system to host all item attributes across the enterprise, enabling
a “single version of the truth”
• Replaced our legacy Warehouse Management System (WMS) in the
South Island Distribution Centre to increase productivity and stock
availability for our stores
• Completed our mobile-first, artificial intelligence-enabled
eCommerce platform which enables a 'build one, deploy many'
approach for the Group, with thewarehouse.co.nz. being the first
site to go live on this functionality.
Significance
Retail is a highly competitive sector and we continue to see evidence of
retail disruption every day. If our customers cannot buy what they are
looking for in our stores or on our sites and apps, they have a number
of other places they can turn to instead. Our nationwide network is the
critical link between what we offer and what our customers choose to
spend their money on. If we fail to understand what our customers want
Transacted directly
with exporters through
our offshore offices.
(FY20: 71.5%)
and how they prefer to buy and receive purchases, we are compromising
their willingness to come back to us. Our network enables our customers
to get the right product in the right place at the right time, at a
competitive cost and in a way that serves our customers’ needs best.
Materiality
The impacts of COVID-19 and the corresponding acceleration of
eCommerce have changed consumer expectations in regard to their
shopping experiences and fulfilment expectations. While physical store
shopping remains a significant consumer activity, online shopping
continues to grow, which puts increased expectations on our supply chain
and fulfilment capabilities while inviting greater competition from a broader
range of general and specialist retailers, both here and overseas. This
represents a considerable and ongoing material risk to our business and
one we intend to combat by investing actively in our supply chain, data
optimisation, improved digital capabilities, and refreshed stores that our
customers enjoy shopping in. In acknowledgement of the future need to
repurpose or reformat our physical store network, the Group has prioritised
flexibility in our store lease profile over tenure. Transport is outsourced to
partners except for our in-home delivery and installation teams.
Future focus areas
Build a world-class omni-channel
• Continue rolling out SWAS
• Invest in store improvements and customer experience upgrades
• Launch a Group-wide booking solution for delivery, in-home consultation
and services.
Supply chain
• Achieve real-time inventory accuracy and online “available to sell",
positively impacting online performance, trade and customer satisfaction
• Upgrade fulfilment and distribution centres to support further automation
and capacity
• Deploy an Order Management System (OMS) to further automate online
fulfilment and enhance customer experience.
Enterprise systems, processes and data
• ERP systems build and deploy phases – finance in April 2022 and
inventory in September 2022
• WMS North Island Distribution Centre go-live in April 2022
• Optimise inventory and location tools for the North Island
Distribution Centre.
of international
purchases
88.0%
Store
distribution
cost to serve
decreased
0.6%
Customer
fulfilment
cost to serve
decreased
36.2%
Improved delivery to stores
delivered in full on time (DIFOT)
(FY20: 97.5%) and vs our target
of 98.0%
➜
98.0%
(FY20:
increased 8.9%)
Delivery only

34
The Warehouse Group

35
Integrated Annual Report 2021
Our people, our customers,
our communities and our
environment are at the
heart of our business

36
The Warehouse Group
Our Customers
Our expertise in understanding our customers allows us to keep
them at the centre of all that we do.
Our expertise and understanding of our customers is focused on three
key areas:
• Stock and product management to meet customers’ needs and wants
• Making our shopping experiences easy and seamless, both in-store
and online
• Delivering rewarding and engaging customer experiences.
Stock and product management to meet customers’ needs and wants
The customer is at the centre of every successful business, and through
product and services, retail must meet customers needs and wants. Our
transition to an agile way of working means our business is now organised
as cross-functional tribes that focus on solving specific customer needs
such as ‘helping everyone to look their best’, ‘creating happy and healthy
homes’, ‘raising good kids’, and ‘using technology to enrich our lives’. Our
expertise combines our skills across product and customer management
to increase value. We continue to use data-driven insights to improve
customer experiences and we align these insights with our design cues and
market trends for product range and assortment planning.
We continue to improve our processes for assortment decisions which
enables us to determine what and how much should be carried in a
merchandise category. We are using data to identify the optimum range
width, or Stock Keeping Unit (SKUs) affordability. We continue to see
the reduction of SKUs across the business, ending the year with 18.5%
less SKUs in The Warehouse and 12.6% less SKUs in Warehouse Stationery
when compared to the same period in the previous year. We are also
reducing product churn as we continue to favour ‘beautiful basic’
continuity ranging, delivering value through improved quality and
everyday low prices. Our stockturn has improved from 4.4 times in
FY20 to 5.3 times in FY21.
1

We have maintained our price optimisation work using data to select
and manage price points. Price perceptor products are products that
customers innately know the price of and are key to delivering customer
value and we are making good progress delivering more baskets with these
items. Our forecast accuracy is steadily improving, enabling us to reduce
end of season markdown and achieve better margin.
Mastering the sell-through curve is about finding the right balance of
ongoing and seasonal stock and lowering our weighted average cost of
aged inventory. Last year we recognised the need to standardise, automate
and document our demand management processes. We are making good
progress on assortment and range planning, and we are striving to ensure
all categories use our range planning tool which links to our demand
forecasting, planning and sourcing systems. These processes are still
relatively manual but will be better supported by the implementation of
automated Enterprise Resource Planning (ERP) systems for finance and
inventory scheduled for implementation in FY22.
Stock and
product
management
OUROUR CUSTOMERS
Average stock turn 5.3
times (FY20: 4.4 times)
Stock Keeping Unit (SKU) reduction
Aged inventory as a
percentage of finished goods
inventory 16.1% (FY20: 28.1%)
The
Warehouse
➜➜
Our Everyday Low Price (EDLP) positioning in our largest brand,
The Warehouse, requires accurate forecasting and price optimisation.
Improvements in these two disciplines, combined with an overall SKU
reduction and a move into more continuity ranges, have helped reduce
end of season markdown and better meet customer demand. We have also
reduced our aged inventory
2
as a percentage of finished goods inventory
across the Group, from 28.1% in FY20 to 16.1% in FY21.
The Group also serves a growing set of businesses, ranging from small-
to-medium enterprises to much larger commercial and government
organisations. Through our Business team, our commercial and
government partners have been able to tap into the full breadth of the
Group’s products and services.
Making our instore and online shopping experiences easy
and seamless
We continue to enhance customer shopping experiences instore
and online – developing instore concepts and layouts and refining
online offerings to meet customer needs as well as tailoring customer
experiences to the way they shop.
The Ormiston Town Centre development has proven a huge success
for our cornerstone brands, with the new The Warehouse, Warehouse
Stationery (SWAS) and Noel Leeming stores showcasing our latest store
layouts, technology and customer experience offerings.
One of our biggest customer-facing digital initiatives this year was the
launch of our new mobile-first Group eCommerce platform in March
2021, after completing the transition of The Warehouse website and
mobile app. Noel Leeming will become our second brand to migrate
later this year. Our new mobile-first platform provides tight interactions
with our customer ecosystem across our product, marketing, fulfilment
and customer service systems. Noel Leeming grew its one-hour Click &
Collect offering to increase Click & Collect sales to 61.8% of online sales.
We also launched same-day Click & Collect in The Warehouse in time
for Christmas 2020. Click & Collect sales for the Group increased 21.1%,
representing 40.4% of total online sales (excluding TheMarket.com).
3

TheMarket.com continues to grow ahead of plan, with over 2.5 million
available products from more than 5,300 of the world’s most desirable
local and international brands. The range covers major lifestyle
categories including fashion, home and living, health and beauty,
electronics, sports and outdoors, DIY and garden, pet, entertainment,
food and pantry.
Following an exceptionally strong online sales result in FY20, online sales
for the Group, including TheMarket.com, increased 5.0% to $393.1m
(FY20: $374.5m), and now account for 11.5% of total Group sales. When
compared to FY19, a more comparable year due to COVID-19, online
sales were up 68.8%. Online traffic for the Group increased 15.2% (FY20:
30.1%) while online conversion for the Group (excluding TheMarket.com)
Warehouse
Stationery
5.3 x
16.1%
12.6%
18.5%

37
Integrated Annual Report 2021
increased 0.5% (FY20: 1.8%) driven by an 11.4% increase in Torpedo7
and 6.2% increase in The Warehouse following the launch of the new
Warehouse online platform.
In order to make customer online payments seamless and easy, we
also integrated our relationship with ZIP, Finance Now, Visa, and Gem
(interest free) to provide a wide range of customer payment solutions
on the go, through our websites and on our mobile apps.
Delivering a rewarding and engaging customer experience
We interact with 2 million customers instore and 3 million customers
online each week. We remain dedicated to making shopping with The
Warehouse Group family of brands as convenient as possible for our
customers. Value for money is a priority for The Warehouse customer.
We worked closely with our suppliers to improve the quality and
sustainability attributes of our products, as well as communicating both
the value and the sustainable features of our products through our
Sustainable & Affordable campaign.
Customers continue to give us great feedback on our store experiences,
and we are pleased that the weighted average net promoter score
(NPS) increased by +7.5 points for the Group in the last month of the
year to 76.6
4
. We also implemented NPS for TheMarket.com, with an
average score for the year of 55.1 for customer orders.
5

We have been able to grow margin without eroding our value
perception as a result of our price optimisation programme. While
the Group’s sales grew significantly during the year, and at stronger
margins across the board, the New Zealand market experienced
significant growth in categories the Group doesn’t fully participate in,
including restaurants (+23.7%), home building supplies (+16.3%), and
health goods and services (+16.0%). As a result of this uneven growth
across the market, the Group’s market share declined -0.2 points to
6.0% of total retail sales (including grocery and food).
6
Our mobile apps for The Warehouse, Noel Leeming, and TheMarket.com
continue to be loved by New Zealanders, with all three ending the year
among the top 10 shopping apps based on iOS and Google Play app
store rankings in New Zealand. The Warehouse app continues to gain
additional customer momentum and usage with app sales growth of 8.7%,
now accounting for 34.1% of total online sales.
We now have strong ecosystem foundations in place with an established
physical footprint and market-leading digital assets. We have initiated
a unified Group loyalty programme – Market Club and Market Club+
which is starting to rollout with TheMarket.com and The Warehouse
this calendar year. By consolidating nearly four million unique
customer records across our existing loyalty programmes into a single
programme, we will be able to deliver more engaging experiences for our
customers and suppliers, powered by strong insights and a data-driven
understanding of our customers’ needs, wants and shopping preferences.
Average basket value ("basket") for the total Group increased during the
year, with average in-store basket increasing 4.8% and average online
basket increasing 3.3%. These gains were driven by the average in-store
basket growing 10.7% in Noel Leeming and 5.5% in The Warehouse, and
average online basket growing 11.3% in Warehouse Stationery and 10.1%
in Torpedo7.
Significance
Retail is an unforgiving sector, and customers will only choose us first
if shopping with us is easier and more convenient than shopping with
anyone else. If customers cannot buy what they are looking for, they
have other places they can turn to. If we fail to understand what our
customers want and how they prefer to buy and receive purchases,
we are compromising their willingness to come back to us.
Materiality
Online commerce has changed customer expectations about their
shopping experiences. While physical store shopping is still a significant
consumer activity, online shopping continues to grow. That means we
face greater competition from a broader range of general and specialist
retailers both here and overseas. This represents a considerable and
ongoing material risk to our business and one we intend to combat by
investing actively in our supply chain co-ordination, data optimisation
around each customer, improved digital capabilities and attractive stores
that our customers enjoy shopping in. In acknowledgement of the future
need to repurpose or reformat our physical store network, the Group has
prioritised flexibility in our store lease profile over tenure.
Future focus areas
• Launch Market Club and Market Club+ Group-wide loyalty to enhance
customer convenience, make them feel valued, and drive brand love
• Be the first choice for customers
• Provide reliable and flexible fulfilment experiences that exceed
customer expectations
• Reinforce value leadership in The Warehouse.
1, Stock turn has been calculated in FY21, and restated in FY20, based on average inventory per
month which is more aligned to internal management and Board reporting (FY20 was based
on the average of opening and closing year-end)
2. Aged inventory is stock in store held for more than 26 weeks
3. Source: TWG eCommerce and Insights
4. Source: Qualtrics and TWG Insights
5. Source: TheMarket.com
6. Source: Datamine
7. Source: TWG Brand Tracker
Customer
Experience
Shopping
experience

Weighted average
Net Promoter Score
The Warehouse
"good value for
money" perception
vs key competes,
and continues to
lead our competitive
set on this metric
40.4% of online sales across
omni-channel brands

(FY20: 39.4%)
Available products now
feature on TheMarket.com

from 5,300 brands
Click & Collect
sales grew
Total online sales,
increased to $393.1m,
11.5% of total Group sales.
Mobile apps for
The Warehouse,
Noel Leeming, and
TheMarket.com
were all Top 10
shopping apps in
New Zealand
2.5
million
82.0%
7
+7.5 points
Increased
to 76.6
21.1%

38
The Warehouse Group
Our Relationships
We want to build strong relationships with our communities and
our stakeholders to deliver sustainable value and positive change.
In addition to our customers and our team members, we have valuable
stakeholder relationships with:
• Our community and government partners
• Our suppliers
• Our investors.
Our community and government partners
The Group has been supporting New Zealand communities since the first
The Warehouse store opened in 1982. Guided by our purpose of helping
Kiwis live better every day and having a charitable foundation as our
second largest shareholder, we have been able to continue to support our
communities this year.
The Warehouse Group’s community programmes focus on key issues that
affect the wellbeing of New Zealanders, including period equity, family
violence, and child poverty. By mobilising our charity partnerships, our team
members and customers, we help to achieve a better outcome for Aotearoa
New Zealand. Some of the key charity partnerships with which we work
include Women’s Refuge, Variety – the Children’s Charity, The Salvation
Army and The Period Place.
We raised $4.3 million for New Zealand charities and communities in FY21,
bringing the total raised to $75.5 million since 1982. In addition to the charity
partnerships mentioned above, the key instore fundraising campaigns in
FY21 included Be the Joy, Back to School, Period Equity, Healthy Homes and
Toys for Good initiatives.
We were particularly proud of our efforts to promote period equity. We
hosted numerous Members of Parliament from various political parties in
our stores to build understanding of our work to address period inequity.
Initiatives included expanding an instore donation initiative across 26
The Warehouse stores, enabling customers to donate period products which
are distributed to people in need via local community groups. We are now
providing free period products in all our team bathrooms – across all brands,
support offices and distribution centres.
We are also proud of our individual stores which work closely with local
community groups. For example, The Warehouse Whakatāne provided
300 lunchboxes to Tāneatua School to assist them with their participation
in the Healthy Lunches programme and sponsored The Kindness Cup
through The Kindness Collective in multiple schools around New Zealand.
The Warehouse Porirua provided thermals and warm essentials to the
volunteers caring for the stranded orca, Toa, and The Warehouse Snells Beach
donated warm essentials to Middlemore Foundation for children in need.
The Warehouse Group interacted with relevant government ministries,
ministers, and officials on issues such as COVID-19, climate change, the
future of work, regional community needs, access to period products and
ongoing efforts around tackling family violence.
For example, we met with the Minister for Sexual and Family Violence to
OUROUR
RELATIONSHIPS
discuss our updated and enhanced family violence policy, our work in this
area, and how we could provide further support to our team members
and the public in general.
We actively engaged with Government on issues pertaining to
climate action which included our submission to the Climate Change
Commission on its draft advice to government for the first three
emissions budgets through to 2035. We also engaged with government
through our contribution to the industry-led low carbon freight pathway
report, and to product waste stewardship regulation via the roll out of our
e-waste recycling initiative in partnership with TechCollect NZ. This pilot
programme will help inform the best options for an ongoing regulated
e-waste product stewardship system in New Zealand.
During the year we participated in the Government’s “make summer
unstoppable” campaign to support the Government's COVID-19
promotion of the use of QR code scanning to enable COVID-19 tracking.
We also liaised with the Ministry of Health about supporting the COVID-19
vaccination programme, becoming part of the COVID-19 workplace
vaccination pilot alongside three other large New Zealand companies.
The Warehouse Group’s Gateway programmes, including The Warehouse
Red Shirts in Schools, Warehouse Stationery's Blue Shirts in Schools and
Noel Leeming's Discovering Passionate Experts, reached 856 student
enrolments in FY21. These numbers are slightly lower than FY20 due to
the continuing effects of COVID-19 lockdowns. During FY22 the Group
plans to extend Gateway programmes to our Torpedo7 Bike Hubs. This
will further extend opportunities for students to experience working in a
wide range of retail settings and help address New Zealand’s current bike
building skill shortage.
The Group has maintained its role as a key partner in the IBM Pathways
in Technology (P-TECH) programme. P-TECH NZ was established in 2019
and is a five-year programme where students complete high school, and
earn an advanced diploma in digital technology with engaged mentoring,
ready to begin a career by the time they graduate from the programme.
The P-TECH programme directly addresses some of the recommendations
of the NZTech ‘Digital Skills for our Digital Future’ (January 2021) report
by building the digital skills pipeline and supporting students’ transition
to work. The report’s foreword states: “We must also do more to foster
greater inclusion of different groups within the tech sector – in particular
Māori, Pasifika and women - to ensure that the opportunities available
for business enterprise and career development can be realised by all.”
P-TECH specifically targets these three population groups.
We continued to work with Massey University to shape and design the
retail element of the Massey University Bachelor of Retail and Business
Management degree.
In 2021, the Industry Establishment Board set up the Services Workforce
Development Council, on which The Warehouse Group has a representative.
We endeavour to use our membership to promote retail as a career as well
Community
Fundraised for New Zealand
charities and communities in
FY21. $75.5m since 1982.
Promote Period Equity
in The Warehouse Group’s
Gateway programmes
50%50%
++
Donation initiatives across
26 The Warehouse stores
enabling customers to donate
period products
$4.3m
• The Warehouse's Red Shirts
in Schools
• Warehouse Stationery's
Blue Shirts in Schools
• Noel Leeming's Discovering
Passionate Experts
856856
student
enrolments

39
Integrated Annual Report 2021
as our continued partnerships with Retail NZ and various Industry Training
Organisations (ITOs), such as ServiceIQ, in order to build a sustainable
vocational retail education system in New Zealand.
In FY21, The Warehouse Group distributed $13.3m to The Tindall Foundation
in the form of dividends, in line with the Foundation’s 21.3% shareholding.
The Tindall Foundation is a private philanthropic family foundation,
independent of The Warehouse Group, set up by Group founder Sir Stephen
Tindall and his wife Lady Margaret Tindall. Working to build a stronger,
sustainable Aotearoa New Zealand, the Foundation supports up to 700
organisations a year and has donated over $200m since 1995 to help
families, communities and the environment to thrive now and in the future.
Beyond monetary donations, the Foundation also provides support, skills,
connections and communication that help organisations and communities
to achieve their goals.
Our suppliers
In 2021 we have focused on strengthening our partnerships with our
overseas suppliers with the introduction of a balanced vendor scorecard
that guides our annual reviews. These reviews allow us to support our
vendors in improving their ethical, quality, sustainability and commercial
outcomes they deliver to our business. A large part of our business awarding
criteria is based on our vendor scorecard, thereby incentivising continual
improvement. COVID-19 lockdowns in many regions and worldwide shipping
disruptions have affected our suppliers. Our in-country teams have stayed
close to these issues and worked through them with our vendors to ensure
we prioritise key stock for our customers.
During the year, we extended our ethical sourcing programme by placing
more emphasis on supplier development and training and implementing a
supplier balanced scorecard, while continuing our regular factory auditing
and monitoring activity.
Ethical sourcing
There are explicit requirements for suppliers providing merchandise
carrying a brand or private label owned by The Warehouse Group. These
include the ongoing disclosure of the identity and location of all primary
and secondary manufacturing sites associated with each purchase order,
the qualification of these sites (in reference to this policy) as a pre-
condition of order placement, and the acceptance of ongoing monitoring
and continuous improvement as a condition of business.
In FY21, The Warehouse’s private label products were sourced from around
500 factories
1
primarily located in China, Bangladesh, India, Vietnam,
Malaysia, and Pakistan, involving about 246,000 workers. 172 new factories
(70% of applicants) qualified to enter our supply chain via our oversight of
third-party Labour and Environmental Audits.
Our programme at Tier 1
2
supplier level is relatively mature – we can now
trace and qualify almost 100% (500 suppliers) of these sources.
Building on this, we have a new ambition. Starting with textile, wood, and
paper products we aim to extend our existing ethical sourcing work into
Tier 2
3
of these supply chains. By 2025 we aim to trace and qualify the Tier
2 sources for the most valuable 50% of our Tier 1 textile, wood, and paper
suppliers. This is an ambitious goal as we do not have direct relationships
with suppliers at Tier 2 and the number of factories proliferate at this level
of the supply chain.
In 2016, we committed to only stocking products containing palm oil from
certified sustainable sources, reinforcing the Group's commitment to the
environment and making it easier for our customers to be more sustainable.
Comprehensive disclosures and factory lists pertaining to our ethical
sourcing programme can be found in our Ethical Sourcing Report on
our website.
Our investors
Through our relationships with investors, we aim to enhance shareholder
engagement and provide continuous disclosure on company
performance and strategy and investments, with the objective of building
shareholder value and delivering consistent and sustainable total
shareholder returns.
In our investor reporting, we continue to embrace Integrated Reporting
to improve the quality and relevance of information provided to key
stakeholders, including providers of financial capital. Using the principles
of integrated thinking in decision-making helps our business recognise
the different aspects of value that are important in a way that is
understandable and consistent across the Group. This year we have
expanded our Integrated Reporting to include the Global Reporting
Initiatives (GRI) reporting framework. In accordance with this framework,
we have assessed material economic, environmental and social matters
relevant to the Group and have used this framework to report on our
initiatives and our positive and negative impacts in these identified
material areas.
Our next step in investor reporting will be adopting the Task Force on
Climate Related Financial Disclosures (TCFD) framework, and we continue
to monitor developments from the New Zealand External Reporting Board
with a view to reporting under TCFD by the 2024 financial year.
We build open relationships with our investors through various initiatives,
including investor days. In May we held our first investor day in four years
which provided an opportunity to review the Group's transformation over
the last four years and current strategy.
We welcome communication with the New Zealand Shareholders’
Association, transparent discussions with our shareholders at our Annual
Shareholders’ Meeting and the Chair of the Board has held a number of
meetings during the year with shareholders on key governance issues.
Significance
Our size and scale mean we continue to play a role in New Zealand
communities – nationally at a Group level and locally through our stores.
We take this role seriously and work across many stakeholder groups
to share our voice and work towards positive impacts. Do Good means
standing up for our people, our planet and our communities, and we have
the opportunity to drive positive change through our ethical sourcing
initiatives by working with suppliers who share the same values.
Materiality
Given the broad coverage of The Warehouse Group’s stakeholders,
we have not attempted to define or explain materiality to our relationships.
Future focus areas
• Continue to work within our communities and with key stakeholders to
deliver a positive impact for the communities we serve
• Partner with suppliers who can help us build our ranges faster, smarter
and with more sustainable options
• Drive product development and design through strategic relationships
with our suppliers and take the ethical and responsible sourcing actions
that our customers now expect
• Grow our culture and organisational performance under an agile working
environment to prepare for future developments.
1. Factories with orders over US$50,000 in FY21.
2. Tier 1 supplier means supplier of textile, wood and paper products to TWL and WSL being the
final manufacture site where our products are made.
3. Tier 2 supplier means a site that manufactures componentry and processed material inputs
such as fabric, buttons and zips, as ordered by sales volume, present in a finished product
that is manufactured by a Tier 1 supplier.
Supplier
insights
in-person, on site or group and
virtual supplier training sessions
FY21 Progress:
Established a register
of Tier 2 apparel
sources.
128128
on various labour
and environmental
management topics
1,74 4
Suppliers completed
e-learning lessons
By 31 July 2025, achieve
traceability of all Tier 2
3
Sources for at least 50%
of Tier 1
2
Textile Wood &
Paper Suppliers