Addresses to Annual Meeting 19 May 2022

Chairman’s Address to the Annual General Meeting of Shareholders
19 May 2022

Kia ora, tena koutou, tena koutou, tena koutou katoa

It is a great pleasure to be with you today to not only reflect on the Group’s performance in the
latest financial year – but just as importantly, to share with you some of the exciting initiatives and
plans the team has in place as we go forward and I’m sure you’ll enjoy hearing from some of the
senior team here this morning in relation to a number of those initiatives.

For a second successive year the global pandemic had a major impact on the retail landscape
and I’m pleased to report that Briscoe Group again responded to and met those challenges
incredibly well. Testament, I think, to the operating model which we run, the teams we have
running and leading it and their ability to respond quickly to change.

It is no exaggeration to say that retail, in the current era, has faced profound commercial and
social developments that bring both challenge and opportunity. Well before the onset of Covid-19
there was accelerating change, with shifting customer lifestyles and preferences, new online
trading platforms, evolution in the role of physical stores, increasingly fractionalised media and
the growth of competitors with global reach. The pandemic has added layers of complexity,
disrupting manufacturing and supply lines. These issues are far from unique to New Zealand, as
globally the deterioration of financial markets and escalation of political tension particularly in
Europe are all contributing to continued disruption to supply chains, increased inflation and
reduced workforce availability. Market volatility, inflationary pressures, supply chain issues and
shortages in the labour market are unlikely to go away any time soon.

While these powerful forces rightly make the headlines, they do not tell the whole story. The
pressures on our people have probably never been tougher from our top executives across to our
front line and “our back office”. Caring for and supporting our people and their whanau could not
have been a higher priority.

There is also a layer of personal and professional challenge that our store teams deal with on a
daily basis. With the pandemic has come social tensions that can play out in-store – for example,
in disputes over protocols such as the scanning of QR codes or the wearing of masks. There has
also been a widely reported increase in attempts at shoplifting, sometimes brazen in execution
and/or conducted by people working together. Needless to say, the Group has taken steps to
ensure the safety and security of teams affected by such behaviours and this will remain a very
high priority.

With the experience gained from the first national lockdown in early 2020 our teams were able to
move seamlessly to the required mode of operation when further lockdowns were announced in
August 2021. After producing a remarkable result for the first half of last year the announcement
of further lockdowns at the beginning of the second half of our financial year introduced a huge
amount of uncertainty and risk in relation to the Group’s trading position. ......

..... which would seem to be the perfect time for me to ask our CFO, Geoff Scowcroft, to expand
further on the result that the Group produced last year.
Geoff, over to you.

Thanks Geoff.


As Geoff pointed out, the strength of the Group’s financial position enabled your Board to increase
the interim dividend - to 11.5 cents per share, paid in October and also the final dividend - to 15.5
cents per share, which was paid at the end of March this year.

In spite of the pressures and the operational achievements and financial outcomes, the team’s
energy and commitment to new, insightful and frankly adventurous strategic initiatives has been
both impressive in their results and creating new benchmarks for performance. There is no doubt
that these strategic and operational advances achieved by the Group in recent times have
increased both the resilience of our business and the range of options available to drive
continued growth.

It speaks volumes of our management team that it has been able to move forward successfully
on such a multi-faceted array of initiatives while at the same time delivering exceptional short-
term results in a deeply challenging trading environment. Rod, Andrew Isabel and Nick will
expand further on this soon.


Performance Rights

As a Board and most recently in our Annual Report we have stressed the quality and commitment
of our team. This quality and commitment is everything and it is why we continue to find the right
people, and invest in their growth and performance and support and development throughout the
organisation.
Which brings me to our Performance Rights.

The Board is of the view that all shareholders benefit from the participation of key senior
executives in long-term, appropriately priced, equity-based remuneration that crystallises only on
delivery of increased shareholder value. We believe our updated Long-Term Incentive Scheme
enables this to be achieved. There was one tranche of Performance Rights issued during the
2021-22 financial year and it is the Board’s intention to issue another tranche of Performance
Rights during this current financial year. The Board continues to monitor the relevance of equity-
based remuneration schemes and compares our model with others in the marketplace.

There is more information in relation to this and other incentive plans in the latest Annual Report.
We are proud to have our executives participating and being Briscoe Group shareholders.

On a similar matter, you will have noted from the Annual report that there has been a noticeable
increase in the remuneration paid to the Group Managing Director. Last year, the Board
determined that it was appropriate to assess the overall remuneration package of this role and
engaged Ernst & Young to conduct an independent review compared to the market. The Human
Resources Committee, on behalf of the Board, commissions this type of review for all senior roles
on a periodic basis.

The review identified a significant gap between the remuneration of the Group Managing Director
and comparable roles in the marketplace. This was all the more stark considering the sustained
market leading performance of the Company versus comparable organisations and roles.

Although modest increases of 2.0 to 2.8% had been applied to the Managing Director’s
remuneration between 2017 and 2019, no increases to his salary had been made in the
preceding 11 years placing it far below market rates.

Acknowledging the findings of the review, the Board increased the remuneration package to an
appropriate level.

This work was led on behalf of the Board by Andy Coupe in his capacity as Chair of the Board
HR committee. If you do wish to learn more about the independent review process or any other
queries, please ask Andy during the Q&A session towards the end of the AGM.

Corporate Governance

Briscoe Group is committed to the highest standards of governance and management. It has
always been a strong feature of this company that the Board and Executive teams work
effectively together and are aligned around the business objectives.

Our latest Annual Report, which can be viewed and/or downloaded from our website, sets out the
corporate governance polices, practices and processes that we follow. I’d certainly encourage
you to take a look at that section of the report, if you haven’t already, as it provides a clear
understanding our approach to what is a vital corporate concern.

The Board recognises that corporate governance encompasses a broad spectrum of policies,
processes and practices, from how a company values its stakeholders through to impact on the
community and environment. As well as the usual company policies available on our website,
Briscoe Group has a number of initiatives under way in relation to its involvement in the
community and its drive to ensure a positive environmental impact and I think Andrew will expand
a little more on this later when talking about the Company’s intentions in relation to ESG
initiatives.

A key feature of good governance is for boards to challenge themselves consistently to ensure
the highest level of service to the companies they serve, and we are confident that the Briscoe
Group Board of Directors has an excellent balance of the attributes required to meet the future
needs of the business.


Summary

As announced earlier this month, the company has made a solid start to trading in the current
year, delivering first quarter sales growth on what was a stellar performance produced for the
same period last year. This is a start that should give us all confidence in the company’s
continued ability to perform.

The Board is extremely proud of the performance of the whole Briscoe Group team. Obviously,
the financial results, but also too the way the Company continues to balance the interests of all
stakeholder groups – the team, customers, suppliers and shareholders alike.

Before I conclude I would like to acknowledge my fellow directors - Tony, Andy, Mark and Rod
and their individual contributions to the Company. We recognise the importance of working
effectively as a team and the diversity of our individual skills and experience.

As we stated in the Annual Report, the ability of our teams to focus on both short-term
performance and strategic growth remains central to continued success and we are confident that
the talent and focus of our people, along with the strength of our brands and operating model will
enable the Group to continue to perform.

And on that note, I would now like to invite Rod to speak with us about his review of operations....
Rod.

Chief Financial Officer’s Address to the Annual Meeting of Shareholders
19 May 2022

Thanks Rosanne and good morning everyone.

This time last year at our AGM we talked about what a remarkable year we had just witnessed
during 2020 and into January 2021, and I think we all agreed that it had truly been a year like no
other and not likely to be seen again any time too soon. Well, it probably doesn’t pay to make
predictions like that, as we now know the year we’ve just had to January 2022 was another year
which just couldn’t have been scripted at its outset. Another rollercoaster ride which brought
some new challenges, particularly in relation to the international supply chain, as well as revisiting
more recent ones -such as further store lockdowns.

I thought this morning we’d step through some of the high-level areas of the Group’s performance
that made up that 2021/22 result.

The Group consolidated its move through the $700 million benchmark set in the prior year, with
an increase of 6.1% to $744 million. A remarkable increase when you consider the previous year
had an additional week’s trading in it and also the fact that we had Auckland stores shut between
August and November as well as all other stores closed at various times during that period.

The first half of that year for us was February 2021 through to July 2021. We knew we should
perform exceedingly well for the first 3 months, our 1
st
quarter, as we were up against the first
national lockdown from the year before – and we did perform really well. 78.4 % higher than the
prior year’s severely interrupted first quarter. As we said at the time, a better gauge for that
performance was probably to look 2 years prior - to the time without Covid. This comparison was
an increase of 14.9% which did really reinforce to us the level of increased performance.

The question for us then was - how that increased performance would stack up through the
second quarter, which if you remember was up against an unprecedented retail resurgence from
the year before as the country came out of that first national lockdown. That previous year the
Group had delivered a 2
nd
quarter increase of 28% over the prior ‘uninterrupted/normalised’
quarter, so for us to produce a second quarter increase of over 21% against that same
‘normalised’ period of 2 years ago was really pleasing and even though we didn’t quite match the
huge result from the previous year’s 2
nd
quarter, it certainly reinforced the continued strength of
the Group’s performance half-way through the year.

And what a first half performance it was.

Sales up by 22.6% on the previous year, but probably more importantly 18.3% up on that more
normalised benchmark of the first half of 2 years ago. Net Profit After Tax of $47.5 million, truly a
new benchmark for the Group, against the previous $28.0 million which we were really proud of,
delivered despite the challenges faced with the first onslaught of Covid.

A real driver of that half year performance was our ability to continue to grow gross profit margin
percentage achieved from significant work to reassess the way we manage and analyse
promotional activity but also too benefits emerging from our collaboration with KPMG via project,
which Andrew will cover in more detail later this morning.

So what a start to the year then, from 18 August, all of New Zealand went back to Alert level 4,
National Lockdown and physical store closures. Closures which for Auckland would remain in
place for the next 84 days until 10 November. Nearly a quarter of the year, across stores which
make up nearly 30% of our store network.

Remember, after the first national lockdown across March to May 2020, sales were 35% down for
that first quarter. So how did we go with this next lockdown? Not 35% down but as expected we
were down on the previous year - by 14% but against our measure of the same period 2 years
ago, basically flat (-1%). Impressive when you think about the number of days the Auckland
stores were closed during that 3
rd
quarter period.

Obviously, that left the final and crucial 4
th
quarter. Auckland stores were shut for the first 9 days
so that wasn’t the greatest start. Also, the previous year’s 4th quarter included an additional
week’s trading. If we exclude the additional week from the previous year then, despite the
closures at the beginning, we actually grew 5% for that final quarter against the previous year and
18% compared to 2 years before.

One of the star performers for us and its certainly relevant to mention now as we talk about sales,
is the success of our online business and how important that has been for us during the last
couple of years and especially during last year’s second half as we went up against another
lockdown. On the back of an 80% online sales growth in the year ended January 2021, online
sales grew last year by another 21%.

This chart which shows our progress with online sales as a year-to-date percentage mix of Group
Sales for the first 9 years of running online. Really steady increases every year up until the year
ended January 2020. For the year ended January 2021, the impact of the first lockdown is very
evident. When we include last year, year ended January 2022, the impact of the Auckland
lockdown is very clear from August onwards. Interestingly the decline in online back to bricks and
mortar is not as strong or as rapid as in 2021. We don’t think this is necessarily a permanently
new level for online but with the rise of the Omicron variant there is a definite slow-down in the
move back from online to bricks and mortar. We can see this very clearly from the first 2 months
of this year. We think a normalised online mix is currently somewhere around 16 -18 % of sales.
For the first 2 months of this year, it has averaged around 20%. Clearly a result of the
nervousness around Omicron and this has also been borne out in foot traffic statistics widely
reported in relation to malls and shopping centres.

Online is a huge part of our business and our ongoing plans as well, and Isabel and Nick are
going to share some of the exciting initiatives with you, in relation to that, this morning as well.

We’ve talked about sales, gross profit and online, now let’s talk about costs and the ongoing
challenges with them.

Last year one of the major challenges in relation to costs was the disruption to the supply chain
and the myriad of impacts that had on our ability to source, ship, process, store and transport
product. The massive hikes in international shipping costs, as well as the delays to shipping
schedules have been well documented and we expect them to continue certainly in the short to
medium terms. While certainly not immune to these issues the strength of our supplier and
logistics partnerships have assisted us greatly. Our inventory position reflects the position we
took very early in ensuring we had relatively consistent supply of stock and while that has meant
a larger investment in inventory than traditionally would have been the case, it has certainly paid
off for us in relation to being able to get product to shelf as well as a positive bottom-line result.

The Group’s balance sheet remains strong. There is a healthy cash position which enabled the
Board to increase both the interim and final dividends in relation to last year. We continue to
invest in growing the store network and we’re very proud of the Silverdale and Morningside stores
we added to the Group last year. Inventories are up and we know why as mentioned previously.

For the full year, a Net Profit after Tax (NPAT) of $87.9 million which is an increase of 20% on the
$73.2 million for the year ended January 2021 and 40% up on the $62.6 million the Group
produced only 2 years ago.

In closing, we’ve had yet another incredibly volatile year with fantastic highs as well a few
challenging lows. A rollercoaster of a year which I think is now pretty much a permanent feature
of the retail fun park in which we operate, but a year which we all can and should be incredibly
proud of.

Managing Director’s Address to the Annual General Meeting of Shareholders 19
May 2022

Thanks Rosanne.

I too add my welcome, and my thanks to you all for joining us at this annual meeting.

I want to start by endorsing the Chair’s comments on the year we have recently reported on. It
was indeed another remarkable year, and our performance testifies to the high operating
standards in place throughout the company.

Financials

Geoff has already covered our financials in some detail. I’ll make just a few comments on
matters of particular note.

To be recording record sales and profit in such a difficult year was very gratifying. After
posting very strong results in the first half, it was an excellent performance to back it up with a
solid second half despite the impact of the lockdown that came with the Delta variant, from
August 2021. In some ways the performance was even better than it looked, given that the
second half of the previous year had been one week longer and featured a resurgence in
sales after the lifting of the first national lockdown in 2020.

The 6 percent growth in sales reflects the adaptability and resilience of our total trading
platform – across the store network, online, click-and-collect and supply chain functions.

Just as noteworthy, was the increase in gross margin to almost 46 percent, a significant
achievement and highlight – especially so after a major increase in margin in the previous
year. The improvement reflects not only market changes as a result of Covid but also a
programme of work going back several years, to isolate and enhance the drivers of margin
growth in a really granular way, and I think we can say, we are now seeing the expected
payoff from that work.

The strength of our balance sheet is also particularly noteworthy and underpins our ability to
continue to invest in the factors that will drive performance as we move into the current year
and beyond.

Our trusted retail brands

The foundation on which the business ultimately rests, is the quality of our offering and its
appeal to customers. Briscoes Homeware and Rebel Sport are highly-trusted New Zealand
retail brands. We have a suite of globally-renowned product brands, that we continually look
to update and refresh. Our work with supply and logistics partners to maintain the availability
of our product range, despite the disruptions caused by the pandemic was critical to our
performance in the latest year.

We resolved some years ago to keep a laser focus on offering our customers compelling
brand propositions and enjoyable shopping experiences. That focus has produced a wave of
innovation in-store, online and in our back office, and remains the key driver of our strategic
innovation programme, which I’ll come back to.

Strength of our team – People initiatives

I also want to support the Chair’s comments on the performance of our team in working their
way through a very challenging trading environment and achieving success.

If the last 2 years have shown us anything, it’s that there will always be some new challenge
to test our operating capabilities and resourcefulness. In that sort of trading environment, the
attributes required will include leadership, strategic focus and commitment to individual and
team performance. My view is that we have these attributes, in abundance. Our teams are
actually a source of competitive advantage and a key reason we have outperformed our
peers through what has been a very tumultuous period in retail.

Our management and operational team structure is based on the needs of the business and
supported by education, training and welfare programmes for the mutual benefit of the
company and the individuals who work in it.

Our executive team is relatively small, very nimble and cohesive. We engage with external
organisations or individuals where additional skills are necessary to drive better business
performance. At the store and local community levels we have a mix of experienced and
emerging leaders supported by centrally-driven programmes to provide guidance,
development and opportunity throughout the group. These leaders are, of course, supported
and enhanced by the work of our store and online fulfilment teams.

Providing certainty to our people through the pandemic – particularly in regard to incomes –
has been both challenging and rewarding. It helped us to maintain the high engagement
levels of team members across the year, and notably through our peak trade period, and
complemented many other actions taken to balance the various stakeholder needs and
wants.

Our education programmes include a bespoke Management and Leadership programme
support, for advanced tertiary studies, and the Briscoe Group – First Foundation Scholarship
with the support of the RA Duke Trust, for team members and immediate family members. As
you would expect, we also have internal and externally-supported training programmes on a
range of role-focused areas.

We have been driving a focus on team member welfare, support and engagement for several
years, and we have been seeing a clear impact on performance. What the challenges thrown
up by the pandemic have done, is bring the benefits into even sharper view.

I am very proud and appreciative of the contribution made by our people right across the
business, over the past year and more, and I’ve got every confidence that this will continue to
be the case.


Store Network

Our store development programme continued, with total capital investment of $19.9 million,
just under half of which was on development of the Group-owned properties in Auckland and
Silverdale. The balance, just over $10 million, was for the fit-out of new and refurbished
stores, online platform improvements, security system upgrades and enhancements to
system software and hardware.

The new concept Briscoes Homeware store at 36 Taylors Road, Morningside opened in early
March 2021. That allowed us to introduce a new Rebel Sport store in the retail space on the
ground floor of the Support Office building at 1 Taylors Road, Morningside in April the same
year.

The development at Silverdale, with new Briscoes Homeware and Rebel Sport stores,
opened in November last year. Trading in both of those stores has been significantly better
than expected.

Work has since started on upgrades to Rebel Sport stores in Te Rapa and Albany, which will
incorporate many concepts introduced in the new generation Silverdale and Morningside
stores. They will also feature new signage and a modernised exterior profile as part of our
Rebel Sport brand refresh.

You might have also noticed a change to the Rebel Sport logo introduced last year.

I’m occasionally asked why we continue to invest in store developments and upgrades, given
the changes in the retail environment, which obviously includes a shift towards online trading.
The short answer is that we see our bricks and mortar network remaining a key driver of
growth and success – in conjunction with the growth of online trading, not instead of it. Our
development programme reflects the ongoing re-examination of our total retail footprint, with a
view to ensuring we have the right mix to take the business into the future.

As I’ve already mentioned, our guiding principle is to offer our customers compelling brand
propositions and enjoyable shopping experiences. There are many dimensions to that, but if
we were just talking about the balance between in-store and online... The starting point is to
acknowledge that despite the impressive growth in online trading, it remains the minority
proportion of the sales in our business. We obviously do believe it will continue to grow, but
shopping in-store will remain important – both in its own right and as a driver and enabler of
online shopping.

Our challenge is to seamlessly cater for all types of shoppers, whether that’s just in-store, or
online, or both, or click-and-collect, or browse in store before purchasing online or browsing
online before visiting a store, or a combination of some or all of these!

In this new retail environment our stores provide a venue where all individual shopping
preferences can be met, new experiences can be provided, and we can pursue our aspiration
to be an easy company to do business with. I should also note that the store network houses
much of the structure for the fulfilment of online and click-and-collect trading.

We are extremely pleased with the new stores opened during the latest year. Their success,
and the role we envisage for the store network in this evolving retail environment, is a source
of confidence for further network growth.Remembering of course that 80% of our sales come
directly from our store network.

This would seem a great time to hand over to Nick Turner, our GM Retail Operations and
Property and Isabel Campbell, GM Online and Digital, to give you a flavour of some of the
exciting initiatives in place across our network.

Nick and Isabel

Thanks Nick and Isabel. I’m sure you’ll agree some really exciting things happening.

Strategic Initiatives

We have talked a little about our Strategic Initiatives over the past couple of years. It’s been
particularly pleasing that we’ve been able to keep focus on this programme and keep it
moving forward at a time when the pandemic could have easily knocked it off course. Far
from that, it’s fair to say the programme so far has actually delivered beyond our expectations
and the results are definitely flowing through to the bottom line.

The many initiatives in place within that framework, are making it easier for our team to drive
sustained improvements in customer service across all of our channels.

An initiative we commenced last year was in relation to future-proofing our supply chain
network and the scenario modelling for this is nearing completion.

The data driven statistical modelling will formulate the network requirements for the next
decade and the increased capacity will provide the platform for future growth.

At this point I would like to ask Andrew Scott, our Chief Operating Officer to shed more light
on the strategy programme and also talk a little bit about our move towards Sustainability. -

Andrew

Thanks for that update Andrew, we’re all very excited about what has already emerged from
these initiatives and also what is still to come.

I think the leadership team has done a terrific job right across the Strategic Initiatives
programme in the most challenging circumstances, and I do want to record my appreciation of
that.

The year ahead

I am confident that the progress we have made in our internal performance will continue into
this current year, and I’m hopeful that trading will not be disrupted by pandemic conditions to
the extent it has over the past two years. Having said that... I make no assumption that we
are on a straight road out of the pandemic. I note that the country is still recording new Covid
cases in multiple thousands per day.

The comfort I take from our performance over the past couple of years is that we have
demonstrated our ability to navigate through the difficulties and uncertainties created by a
pandemic.

We were very pleased to announce earlier this month that we continued to grow sales for the
first quarter of this year by 1.77%. Comparisons with the first quarter of the previous year are
difficult because of the disruptions in both 2020 and 2021. It’s more indicative to note that this
year’s first quarter represented an increase of 16.97 percent on the first quarter of the 2019-
20 year – that is, pre-Covid.

So, all in all we have had a good start to the year.

Going forward, we remain focused on the strategic initiatives and other programmes you have
heard about this morning. In total, these amount to a campaign to build capability and
opportunity for long-term growth. Current areas of focus include minimising the impact of
supply chain disruptions, acting on new category opportunities, further improving distribution
through our store network, and progressing the ESG programmes.

I know it’s going to be another interesting year and I’m extremely confident that we have in
place the right team and the right initiatives to deliver growth across our full network.

General Manager Operations and Property and General Manager Online and Digital
- Address to the Annual General Meeting of Shareholders 19 May 2022
CREATING TRULY CONNECTED EXPERIENCES
A big year for our digital and physical storefronts
Online:
● Online had a huge year with the impact of the lockdowns really giving it a significant
boost. Across both brands we had a combined annual sales growth of 21%.
● Our personalisation programme, which was powered by our new email software emarsy
which went live at the start of the financial year. This delivers great results with 30% YOY
growth for email revenue for online sales. We created and turned on over 12 new lifecycle
communications across the journey.
● Significant amount of work and focus on delivering against the online experience -
delivering both small and large features consistently across the year. Significant features
included eGift cards, our new onsite search platform Klevu and our personalised X-sell
and Upsell features.
Instore:
● It’s been another enormous year for our retail team. Despite the Covid and supply chain
disruptions, and for the third year in a row, the team have driven improvements in
customer service. Last year we achieved Record net promoter scores - in both Briscoes
and Rebel. Briscoes up 2 points - now NPS76, and Rebel also up 2 points - now NPS65.
● Every store in the network is now responsible for and contributing to online order
fulfilment, including our Distribution Centre. The team appreciate that the role of bricks &
mortar now extends well beyond the front door and pleasingly their sharp focus and level
of ownership is helping us deliver improvements in fulfilment speed and efficiency.
● Last year speed to dispatch improved +31% YOY. Through continued investment in
innovation & technology, digital picking helped us achieve this faster pick rate while vastly
improving our efficiency. Fulfilment productive output improved in homewares by +37%
YOY, and in sporting goods by +22%. These gains helped us deliver the 21% increase in
online sales and deliver them more profitably.
● As far as the physical store fronts go, the operations and property team evolved our store
formats for Briscoes and Rebel delivering 4x new format, high energy stores at St Lukes &
Morningside, and Silverdale.
● On the back of the success of these new formats, the creation and commencement of a 3-
year accelerated refurbishment programme is now well underway to revitalise several
existing stores. 4x stores have already been completed this year and another 2x are
currently underway.
● Another highlight was the development and rollout instore of digital queue busting
technology which serves our customers faster during peak sale events, enhancing that
vital final element of the in-store experience.

Our strategic goals

● For the next 12-24 months our teams across both digital and retail, are focused on four
key strategic pillars - covering the experience online and instore, the way we deliver
goods to our customers, the way we use data to personalise and enhance the experience,
and a strong focus on the automation of tasks and processes for our team to make their
life easier - But ultimately improving the experience for our customers.
Number one sports and homewares retail experience in New Zealand
Online:
● In the online space after delivering some core fundamentals last year, we can now really
focus on some of the key features to make life easier for our customers to be able to
choose the product they want online and make decisions about what to buy.
● This includes a significant focus on content. We are super excited about our new review’s
platform bringing more than 1 million global reviews to the platform from our different
brand partners. We know that reviews are a key part of the decision-making process in
making an online purchase decision - in latest research from statistica nearly 70% of
people read more than one online review before making a purchase decision.
● Another key feature we are introducing this year is needs based product finders, where
the consumer may have a problem that triggers the purchase, and we use these needs to
then guide them to the right product. Running shoes for example, where we ask them how
often and how long they run, and then provide them with a list of options based on these
data inputs.
● Another huge experience focus this year is constant iterative improvements to the mobile
experience. We know that over 70% of our traffic now is mobile, so is the key device to
focus on in terms of frictionless browsing.
Instore:
● To be the #1 sports and homeware retailer in NZ we must maintain a relentless focus on
improving Customer Service. This starts with our retail team KPIs which are reset each
year, setting higher benchmarks by store so we can continue raising the bar.
● Customer NPS data and feedback is central to understanding what our customers love
and don’t love about their shopping experience with us, and with circa 220,000 NPS
surveys returned per year this provides us with a wealth of feedback and understanding.
● We continue to invest in new technologies to solve our customer frustrations, examples
are:
○ mobile queue busting technology
○ New In-store kiosks with freight free codes to use when advertised product is out
of stock, and
○ Click and collect process improvements – such as pick streams order
management, but also improving the physical layout for improvements to reduce
waiting times.
● Brighter, energised, modern fitouts – better experience for our customers and easier to
maintain for our teams, examples are:
○ New counter formats for a personalised experience
○ Dedicated impulse units to increase basket size
○ Taller fixtures - better utilisation of space and improved VM
○ Series of new fixtures designed - improved VM
○ More interactive – basketball court, Interactive tables, improved sound systems
○ Better use of LED lighting to brighten the stores and add energy through linear
LED technology, and

○ Dedicated C&C parking.
● Our 3-year refurbishment programme has been designed to take our new formats and
modernise the existing network. The new format is achieving higher customer satisfaction
scores, increased basket value, and longer dwell time in store
○ Additional to refurbishments, we continue to co-locate stores into purpose-built
premises when we have the opportunity.
○ We will continue to evaluate new or improved locations as opportunities present.
Fastest and easiest ways to get your goods in NZ (profitably)
Online:
● One of our key strategic pillars to stay ahead of the international online marketplaces is to
make sure we own the delivery space in NZ for home and sportswear retail. More and
more this is what will differentiate online retailers from each other as customers’
expectations keep increasing on speed of delivery and how strong the overall experience
is.
● This includes three competitive advantages that we are focused on in FY23 - being the
fastest (profitably), being the easiest delivery service, and having the most transparency.
● With our very strong store fulfilment network we are best placed to be able to offer all the
above.
Instore:
● We have a multitude of order management system improvements in development, and a
comprehensive stream of new ideas in scope.
● The recent rollout of ‘pick streams’ in store will enable enhanced & faster delivery options,
and enables C&C pick up efficiencies and smarter order management.
● Further functionality under development currently, like integrated shipping and scan-to-
pack technology, is expected to further boost our dispatch speed, efficiency, and overall
capability.
● Digital bin locations are being trialled in-store this year and are expected to help our team
locate product faster.
● We’ll continue to invest in mobilisation Improvements – making tasks more efficient for our
team to allow them to do more on the floor to ultimately increase engagement with
customers.
Data led, personalised experiences for all customers across all storefronts
Online:
While we are always focused on maximising our trade events and promotions to drive as many
sales as possible every day, we are moving more and more beyond just this to make sure we are
driving frequency as much as possible across a customer’s lifetime with us and measuring this
lifetime value across online and instore.
● Lifetime value for Briscoe Group is measured as the number of times a customer shops
with us across a 2-year period and measured within our emarsys email platform.
● To lift the lifetime value of our customers, this year we will introduce a raft of ways to
further communicate with our customers outside the promotional cycle - including
category specific emails based on what they have bought before, a spend prompt if we
haven’t seen them in a year and importantly in-store data to personalise off.
● Our aim for FY23 is to increase the LTV of all customers for both Briscoes and Rebel
significantly and make this a core focus of our data experiences.

Instore:

● This year we will begin collecting data in store off the back of a new eReceipt programme
allowing us to understand more about our in-store customer purchase behaviour so, if
they allow us to, we can target them with offers that are relevant to them, based on where
they are in their shopping lifecycle with us.
● It will also give the store a powerful marketing database to introduce local VIP offers, and
special trading events or exclusive late nights.
● It enables us to bring the customer journey together across both the digital and physical
storefronts to better personalise their experience.
Team + systems evolution
Online:
● Team - a big part of moving our eCommerce forward is building out a team of specialists
in house, developing this talent, and relying less on external partners for expertise. This
allows us to move more quickly, react quickly to trade conditions and be the best from
within our 4 walls.
● One thing we are super excited about Introducing this year is an eCommerce intern
programme to attract young graduate talent into the team and give them experience
across all the eCommerce functions, with the aim of bringing into the team when
vacancies come up. Already we have had some excellent interns who have been offered
roles within the team.
● Another key focus is making sure we aren’t trying to build everything we need ourselves
but rather look to use the best ‘off the shelf’ technology to improve experience and
productivity – this year this will include a new product information system Akeneo which
powers the likes of Myer and The Iconic too, Fit Analytics partnership as our sizing tool
which is owned by SnapChat, Bazaarvoice Partnership which brings in our millions of
syndicated reviews and Klevu phase 2 - our best in class search tool technology.
● This year we also embed Niteco our new development partner with significant offshore
capability to be able to scale our development capability at a reasonable cost, and still at
the highest quality of work.
Instore:
● We will leverage the strong investment in mobilisation and continue to utilise this
technology platform to invest in smart and considered innovation.
● Innovation to eliminate manual / paper-based tasks, and in making the delivery of
essential tasks more efficient and less paper based to keep our team moving. It also
makes their job more fun - so we become a more desirable place to work.
● All our Business and Retail Managers now have mobiles, ipads are deployed to all stores,
ZEBRA device technology has been scaled out to all stores at pace, new mobile kit to
print product labels on the floor is underway, and this same mobile kit is used to queue
bust, query stock, and pick & dispatch online orders and manage click & collect.
● Upgraded and enhanced Kiosks have been rolled out to stores + we have introduced a
freight free code to buy online in-store for advertised products that are out-of-stock. This
provides a pleasant solution to what used to be a very painful part of the in-store
experience.
● We’ve covered order management system enhancements underway, but we are also
investing in data insights and developing new and improved dashboards to better
visualise performance across many areas – both instore and online, which will help our
entire team to keep their finger on the pulse.

● Regarding our Team - our retail team are fully involved and take ownership in all our
strategic initiatives.
● We have introduced Peakon employee engagement surveys to improve the feedback loop
from our team to help us drive higher team engagement.
● Last year our retail Management and Leadership Development programme commenced
which consists of a series of leadership and skill building modules. This investment
complements and further develops our fantastic retail leadership team, which in turn
builds quality leadership and high levels of trust. Quality leadership that our retail teams
deserve.

Chief Operating Officer - Address to the Annual General Meeting of Shareholders
19 May 2022
SUSTAINABLE BUSINESS GROWTH
The last year has been an exceptional one on many levels. As you heard from the earlier
presentations, we have made significant progress in many areas.

Despite the continued disruption from COVID pandemic, the team have successfully navigated
these challenging times.

We continue to trade strongly both in sales and margin. Our increased investment in our team’s
capacity and capability has helped to land year 2 of our 3-year strategic plan.

The formulation of our strategic plan was completed in December 19, just prior to the arrival of
COVID. This has proved to be a fantastic test of our strategy. Rather than us having to rethink
our strategic priorities, Covid has reconfirmed our strategy as being robust and one that remains
absolute today.

Our Strategic focus is on three core areas:

1. Improving our customer experience in all channels
2. Overhauling our supply chain to maximise margin and improve our efficiencies
3. Growing new revenues

I am very pleased to update that our strategic plan is delivering in all three areas and the
combined impact is a significant increase in incremental profit.

The fact that the team has managed to deliver this whilst during a global pandemic proves to me
that we have the best retail team in New Zealand.

We are also aware through our research it is increasingly important to our team and our
customers, that not only we continue to grow, but we do this is a sustainable way. During 2021
we conducted an extensive materiality assessment survey of our team, customers, and suppliers.

This insight has helped us to start to formulate our sustainability program of “Steps to a better
tomorrow “.


Update on Strategic programme

1. Improving our customer experience:

Both Briscoes and Rebel have had a step change in customer satisfaction over the past two
years. We are particularly proud of the progress in our rebel sports stores in the last 12 months.
Where we have seen consistent experience improvements.

With a relentless focus on our customers and the invaluable feedback they provide, we have
taken our Rebel NPs from a low of 53 to 65. To put this in context a leading sports chain in
Australia is achieving around 60%. Our target is to achieve beyond 70% in the coming years.

Our online experience is going from strength to strength. The launch of our new online customer
satisfaction survey will enable to us build a full picture of our omni channel shoppers.

The digitisation of our team is also freeing up our team’s time to invest back into service which is
fantastic.

Our personalisation program is performing ahead of our expectations. This platform provides
increased customer relevancy at a time when shoppers are time poor.

2. Overhauling our supply chain:

As you will all be aware supply chains across the globe are under unprecedented volatility. Due
to Increasing disruption both overseas and in New Zealand, supply chain optimisation will be a
key focus for the next few years.

Significant progress has been made on improving our buying, allocation and replenishment
processes. This has resulted in increased product availability, which is driving increased sales
and margin returns.

We have delivered significantly improved margin performance, using deep data analysis and
successful testing and trialling of new promotional strategies.

These improvements will help us retain our step change in margin return as through the coming
twelve months.

Our Hybrid online fulfilment model continues to evolve, increased efficiency in store fulfilment and
complimented by DC fulfilment, is producing market leading parcel picking service.

As we have previously mentioned the network modelling for our future supply chain requirements
is nearing completion. This statistical modelling tool has provided us a forward view of our supply
chain requirements for the next decade. We have explored in detail many different options to
drive increased efficiencies, reduce cost to serve and further increase product availability. The
next phase is to build the transition plan, this modelling suggests we will need to triple our current
Distribution footprint in New Zealand to drive our planned growth.

3. New revenue:

We have successfully launched our drop ship program, this exciting development delivers us a
risk free platform to trial new products with existing and new suppliers. It also acts as a footfall
driver to our websites.

We have reached our year one target of having 20 suppliers live. This equates to over 3000 new
products or an additional 5% of available products.

Alongside drop ship we have actively been looking for new product segments that complement
our core business’s. The first of these will launch at the end of September. This amazing product
range is with one of the worlds leading Bed Brands and will be manufactured here in New
Zealand.

As I mentioned earlier this is a very exciting period for Briscoe Group as we look to explore new
growth opportunities.

Sustainability – Better steps to tomorrow


Today I will provide you with an update on our sustainability progress “Seps to a better
tomorrow”, whilst we are at the start of the journey we have made good progress over the last
year.

Firstly, the board have approved our Sustainability policy which you may of seen in the Annual
report or on the website. This sets out our guiding principles for the years ahead.

To ensure we are focusing on what matters to our key stakeholders, we conducted a materiality
assessment, this process canvassed over:

• 600 team members,
• 20 of our strategic supply partners and
• Over 2000 customers.

This information has been collated with the help of sustainability industry experts to provide us
with the focus areas that matter to our team, suppliers and customers. The three focus areas are:

1. Waste and Recycling
2. Energy and Carbon reduction
3. Team wellbeing and increased positive community impact

In parallel to creating our new Sustainability framework we have also been collating the multiple
data points into a common Framework.

Our performance across our current measures is positive with Recycling increasing, energy and
carbon reducing.

To ensure we are taking the learnings and keeping up to date with industry best practice we are
in the process of joining the Sustainable business council. This will provide a great platform for
upskilling our wider team and help us to deliver on our target our focus areas.

In the coming year we will:

• Build the proposed cadence for internal governance
• Start our internal working groups
• Continue to work with suppliers on initiatives
• Build our targets for the three focus areas
• Prepare for the upcoming Climate-related Disclosures managed by the XRB



In summary our strategic plan is delivering ahead of expectations, we are entering a very exciting
period where we will launch new growth opportunities. I would like to reiterate my thanks to the
team for a huge team effort and I look forward to another very successful year.

Briscoe Group
Year Ended
30 January 2022

PROXIES
Resolution 1
Resolution 1
ForDiscretionAgainstTotalVotes
(% of issued
capital)
181,192,722941,9144,669182,139,305
99.48%0.52%0.00%81.81%
Resolution 2
Resolution 1
181,190,435943,9144,956182,139,305
99.48%0.52%0.00%81.81%

YEAR END
30 January 2022

TOTAL SALES ($M)
605
632
653
702
744
2017/182018/192019/202020/212021/22
+6.1%

QUARTERLY SALES GROWTH
78.4%
-5.2%
-14.1%
5.0%
14.9%
21.6%
-1.3%
18.0%
Qtr 1Qtr 2Qtr 3Qtr 4
Qtr Growth % vs LYQtr Growth % vs -2Yr

HALF-YEAR SALES GROWTH
22.6%
18.3%
HALF YR
Qtr Growth % vs LYQtr Growth % vs -2Yr

HALF-YEAR NPAT ($M)
28.6
29.3
28.3
28.0
47.5
2017/182018/192019/202020/212021/22
+70%

ONLINE SALES –YTD MIX
0.3%
1.3%
2.4%
3.4%
4.5%
6.1%
8.22%
10.0%
11.3%
18.8%
21.5%
FebMarAprMayJunJulAugSepOctNovDecJan

TOTAL SALES
61.3
63.4
62.6
73.2
87.9
2017/182018/192019/202020/212021/22
+20%
FULL YEAR NPAT ($M)

OPERATIONS
UPDATE

Creating Truly
Connected
Experiences

A big year for our
digital & physical
storefronts

Online
50M+
More than 50 million visits to
our websites across the year
+21%
Annual online
sales growth
Plus multiple advancements in the online
experience throughout the year –both large
and small online additions added monthly.
+30%
Successful introduction of our
personalisedlifecycle
communications programme
leading to email channel growth
OURACHIEVEMENTS

Briscoes +2 points to NPS76
Rebel +2 points to NPS65
Stores
Speed of dispatch improved by
31% YOY to 1.9 days in FY22
while delivering 21% sales growth
Online fulfilment
speed improved
Record Net Promoter
Scores
Evolved new format for Briscoes
and Rebel brands
Opened 4 new format stores
Created an accelerated 3-year store
refurbishment programme
Evolving our physical
stores
Sales per labour hour for
homeware fulfilment improved
+37% YOY and +88% vs FY20.
Sales per labour hour for sports
fulfilment improved
+22% YOY and +66% vs FY20
Productive output
improved
Developed and rolled out digital
queue busting technology to serve
our customers more efficiently
during peak sale events
Digital queue busting
technology
OURACHIEVEMENTS

Number 1
Our
strategic
goals
Focusing on a truly connected omni
experience in next 12–24 months.
sports and homewares
retail experience in
New Zealand
Fastest and
easiest
ways to get your goods
in New Zealand
Data led,
personalised
experiences
for all customers across
all storefronts
Team & systems
evolution
using technology &
innovation to make tasks
easier & unlock more time to
spend with our customers

No 1 sports and
homewares
omnichannel
experience in NZ
✔Content explosion: new reviews platform bringing
more than 1 million global reviews to the platform
✔Needs-based product selection: fit finder to find the
perfect fit and product selector to find the perfect
sheets
✔New mobile experience with frictionless navigation
and filters
ONLINE ENHANCEMENTS
STRATEGICGOALS

No 1 sports and
homewares
omnichannel
experience in NZ
✔Continued focus on improving customer service and team
engagement by utilising our customer NPS feedback, and
investing in innovation & technology
✔Brighter, energised, modern store fitouts –better
experience for our customers and more efficient for our team
✔Accelerated refurbishment programme is modernising our
network helping to deliver improvements in customer
satisfaction scores, increased basket value, and additional
dwell time in store
STORE ENHANCEMENTS
STRATEGICGOALS

Fastest and
easiest ways to
get your goods in
NZ (profitably)
✔Suite of delivery options to suit all our users needs
✔Online returns portal, that automates the returns
process in easiest way possible
✔Focus on post purchase experience to reduce contact
centre volume
ONLINE ENHANCEMENTS
STRATEGICGOALS

Fastest and
easiest ways to
get your goods in
NZ (profitably)
✔New pick stream order management in store to enable
enhanced delivery options and faster delivery options, also
enables C&C pick up efficiencies
✔A multitude of order management system improvements have
been scoped which include functionality like integrated shipping
and scan-to-pack technology
✔Bin locations being trialed in-store this year to locate product
faster
✔Mobilisation Improvements –making tasks more efficient for
our team to keep them on the floor more to engage with
customers (stock queries, mobile label printing, and more to
come)
STORE ENHANCEMENTS
STRATEGICGOALS

Data led, personalised experiences for
all customers across all storefronts
STRATEGICGOALS
Customer receives email with Adidas
recommendations, as they bought
adidas in their first store purchase
06.
eReceipts: Customer shops in
Briscoes Morningside store for
some Adidas shoes and receives
eReceiptand joins our VIP
emailprogramme
01.
Manage whole experience online:
customer logs in to their online
accountto review their instore and
online eReceipts
02.
Omni welcome offer:Customer receives
a welcome offer and spends again,online
this time
03.
Local store events: Few weeks
later, customer gets invited to
a VIP nigh at their local store so
pops in to grab a deal
04.
Receives a b’dayoffer: Goes in store
to spend it.
05.
LTV
%

Team development
and systems
evolution
✔Build out specialist eCommerce skill set in house
✔Introduce eCommerce intern programme to attract young
graduate talent
✔Deliver best in class online ‘off the shelf’ technology to
improve experience and productivity
✔Niteco: New development partner with offshore capability
to go quickly and to scale our development capability
ONLINE ENHANCEMENTS
STRATEGICGOALS

Team development
and systems
evolution
✔Mobilising our retail team -BM/RM mobiles, laptops and
iPads, ZEBRA device technology, new mobile tech to print
labels on the floor, mobile kit to queue bust & query stock
✔Kiosk upgrades in-store + freight free when advertised
product is out of stock
✔Order management system upgrades + integrated shipping
✔Investment in digital dashboards for performance
monitoring and enhancement –both instore and online
✔Improved feedback loop from our team –Peakon team NPS,
plus full team involvement in delivering our initiatives
STORE ENHANCEMENTS
STRATEGICGOALS

STRATEGY
UPDATE

Sustainable
Business
Growth

Sustainable long term
business growth
Customer
STRONG CORE BUSINESS
Supply chain
New revenues

NPS delivering
well ahead of
expectations
01.
Strategic plan delivering
ahead of expectations
02.
03.
04.
Personalisation
programme delivering
over $6 million sales
Stock
availability
improvements
20 dropship suppliers
live & annual revenues
now significant

Strategic plan delivering ahead of expectations:

Sustainability –Steps
to a better tomorrow

Progress in
2021/2022
Progress &
priorities
What we have done / what we will
action over the next 12 -24 months:
Our Priorities
for the next 12
to 24 months
●Implement the
proposed governance
framework
●Continue to work with
suppliers on joint
initiatives
●Build target
framework for the next
3 to 5 years
●Prepare data and
reporting for new
legislation such as
TCFD
●Materiality assessment
complete
●Good progress in
increasing Recycling
and reducing waste and
carbon.
●Sustainability policy
approved by the Board
●Joining the sustainable
business council
●Internal working groups
created

THANK YOU