NZX Virtual Investor Event

The Warehouse Group
FY22 Interim Results
22 March 2022
NZX virtual investor event –5 July 2022

Who we are
2
89
68
(including 33 SWAS)
70
24
251
stores
across
NZ
Online
marketplace
51.8%
7.1%
33.7%
5.6%
1.8%
FY22 H1 Group Sales $1,730m
(FY21 $3,415m)
Online
Sales
19.4%
of total
Group sales
Click &
Collect
50.1%
of total
online sales

Build a customer ecosystem
Build the future experience
Invest in our infrastructure to
excel in retail fundamentals
Purpose
Helping Kiwis live better every day
Our
Strategic Priorities
Our strategic priorities
•Engage new and existing customers
by solving their needs and wants
better
•Offer a rewarding, seamless and
frictionless customer experience
•Meet & exceed changing consumer
expectations
•Optimise store footprint and develop
supply chain
•Provide “What I want, where I need
it, when I choose”
•Material progress on core system
replacement
•Scoping of further core investment
•Maintained long term financial
security
Recent
achievements
•Weighted average in-store net
promoter score (NPS) increased by
+3.7 points year on year for the
Group
•Online sales increased 67.8% and
Click & Collect sales grew 79.1%
(FY22 H1)
•Warehouse Stationery SWAS
integrations up to 33 stores.
•Significant progress on core
system projects –WMS, ERPFI and
MDM
•ERPFI project is on track –ERP
finance system released in April 2022
•Realtime Inventory available to sell
(ATS) for onlineis on track for release
in September
•Scoping work underway on supply
chain network and complete on
Group Order Management System
(“GOMS”)
•Liquidity of $480.0 million (FY22
H1),with no drawn debt.
•Launched MarketClub–the first
steps towards a Group loyalty
programme
•Integrated 1-day.co.nz into
TheMarket.com –on track to deliver
more than $100m GTV in FY22
•SKU reduction of 12% in the period
–11.0% for TWL and 12.7% for WSL
•The Warehouse mobile app spent 46
days as the #1 most downloaded
shopping appduring the half
•All our mobile apps are rated 4.7+
with over 67k reviews on iOS App
Store.
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Our transformation journey
FY17FY18FY19FY20FY21FY22FY23+ and beyond
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Phase 7
RISE
Digital future / Customer experience
COEs / Business
simplification
Agile ways of working
EDLP
Systems and processes
Our sustainability journey
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•Our customer-centric ecosystem is focused on solving
customer problems and providing a frictionless shopping
experience, 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 MarketClub.
•In August 2021, we announced a cornerstone strategic
investment 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 across all our 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.
Our broad ecosystem –all about our customers
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Carried over 17,500 unique products
with sustainable features, accounting for
over $111 million in sales during the half year.
We are committed to our sustainability journey. In the six months to January 2022:
Diverted 75.8% of operational waste
from landfill in FY22 H1.
Reduced Scope 2 emissions
(1)
by an
estimated 2.8%in FY22 H1.
Raised $1.3 millionfor New Zealand
charities and communities in FY22 H1 including
$111k in support of The New Zealand Red
Cross Tonga Tsunami relief.
Refinanced $140 million of bank facilities into
Sustainability Linked Loansincluding
sustainable packaging, carbon emissions and
gender targets.
1.Scope 2 emissions relate to the consumption of electricity used in the operation of our store portfolio,
Distribution Centres and Store Support Office. Scope 2 emissions typically account for 25% of total The
Warehouse Group emissions. Numbers are yet to be Toitū CarbonZero certified.
Sustainability
Work progressed with the Board-level
Environmental and Social
Sustainability Committee to govern the
Company’s environmental, social and
sustainability responsibilities.
6

Historical performance
•Sales momentum was upheld even in the midst of COVID-19
disruption –with FY22 H1 hardest hit as our stores were forced
to close for 23% of normal trading days during Aug to Dec
2021.
•Gross profit margin was impacted during peak of COVID-19 in
FY20 due to increased operating costs, store closures, and
product sales mix.
•Gross profit grew at a faster rate than sales in FY21 due to
better margin management and sell through rates requiring
lower clearance and promotional activity.However, gross profit
decreased in FY22 H1 due to increased supply chain and
freight expenses.
•Strong online sales proposition across all brands. Online sales
continues exponential growth –making up 19.4% in FY22 H1,
up 67.8% on prior half year.
•Click & Collect is also growing as customers'preferred choice
of easy collection of their online orders –making up half of all
online sales in FY22 H1.
2,981
2,995
3,071
3,173
3,415
1,730
32.6%
33.1%
33.5%
32.6%
36.4%
34.7%
30%
31%
32%
33%
34%
35%
36%
37%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY17FY18FY19FY20FY21FY22 H1
Gross Profit Margin (%)
Sales ($million)
SalesGross profit margin
5-year sales performance
Sales growth+0.5%+2.6%+3.3%+7.6%-4.3%
FY20FY21FY22 H1
Online Sales$374.5 million
(11.8% of sales)
$393.1 million
(11.5% of sales)
$335.9 million
(19.4% of sales)
Click and Collect
Sales
$118.8 million
(32.8% of online)
$143.9 million
(40.4% of online)
$151.8 million
(50.1% of online)
7

Strong Balance Sheet and Dividends
•Strong cash balance sheet with no debt, $150 million as at 31
January 2022.
•Supported by committed, unused, bank facilities available of
$330 million providing total liquidity of $480 million. This is
slightly above the Group’s target liquidity requirement of $350
million -$450 million.
•Available bank facilities include Sustainability Linked Loans
totalling $140 million with Westpac and ANZ.
•We have a high dividend pay-out ratio policy –to distribute at
least 70% of the Group’s full year adjusted net profit, at the
discretion of the Board and subject to trading performance,
market conditions and liquidity requirements.
(218.3)
(162.3)
(76.2)
168.1
160.5
150.0
FY17FY18FY19FY20FY21FY22 H1
Cash Balance ($million)
10.010.0
9.0
13.0
10.0
5.0
6.06.08.0
17.5
16.016.0
17.0
35.5
10.0
FY17FY18FY19FY20FY21FY22 H1
Dividend History (cps)
InterimSpecialFinal
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Thank You
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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.
This presentation does not constitute investment advice, or an inducement,
recommendation or offer to buy or sell any securities in The Warehouse
Group Limited.
Disclaimer
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