The Warehouse Group Limited/Announcement

The Warehouse Group Limited FY22 Result

Full Year Results27 September 2022WHSConsumer Discretionary

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Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 52 weeks to 31 July 2022
Previous Reporting Period 52 weeks to 1 August 2021
Currency New Zealand dollars
$3,294,332
$3,294,332
$87,088
$87,088
Final Dividend
Record Date 17 November 2022
Dividend Payment Date 02 December 2022
Contact phone number
Contact email address
Date of release through MAP
Audited financial statements accompany this announcement.
Revenue from continuing
operations
down (3.5)%
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change
Total Revenue down (3.5)%
Net profit/(loss) from
continuing operations
down (19.3)%
Total net profit/(loss) down (19.3)%
Amount per Quoted Equity
Security
$0.10000000
Imputed amount per
Quoted Equity Security
$0.03888889
Current periodPrior comparable period
Net tangible assets per
Quoted Equity Security
$0.780 (31 July 2022) $0.860 (01 August 2021)
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 31 July 2022.
Certain comparative amounts reported for the previous year have been restated
following adoption of the Cloud Computing Arrangement agenda decision
issued by the International Financial Reporting Standards Interpretations
Committee (IFRIC) in April 2021. Information relating to these adjustments are
detailed in note 17 of the Financial Statements.
Jonathan.Oram@thewarehouse.co.nz
28 September 2022
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) 489 7000

---

THE WAREHOUSE GROUP
FY22 ANNUAL
RESULTS
28 SEPTEMBER 2022

Chair’s Update, Joan Withers
Group Update, Nick Grayston
Group Financials, Jonathan Oram
FY23 Outlook, Joan Withers
Appendix A: Divisional Results
Appendix B: Additional Information
CONTENTS
3
9
17
29
32
37

CHAIR’S UPDATE
JOAN WITHERS
3

4
THROUGH ANOTHER DISRUPTED YEAR, WE HAVE
DELIVERED A STRONG RESULT WHILE INVESTING IN
THE FUTURE
We have never been more confident of our innovation
strategy –to provide a personalised, integratedand
friction-free shopping experience.
The resilience, focus and agility of our team have been hallmark themes for the Group over the
last two years and I’d like to recognise and commend all our team members for their
commitment to our customers and one another through this period.
There have been COVID-19 store closures and restrictions, disruption to our supply chain and
increased ocean freight costs which have had an impact on sales and gross profit margin.
There has also been a cost in making sure our team and customers are kept safe in the context
of the pandemic, combined with additional costs of providing greater remuneration equity and in
increasing our marketing investment in grocery and TheMarket.com.
As a result of COVID-19 impacts, each of our brands have experienced a decline in sales and
gross profit margin compared to FY21, with the exception of Torpedo7 which has continued its
pleasing sales growth.
We are investing in our strategy to build a world class retail ecosystem in the roll out of our
groupwide membership programme, in systems and infrastructure, and in the continuous
empowerment and development of our people.
We are excited to share our new vision –to make sustainable living easy and affordable for
everyone.
4

1.Comparable Adjusted Net Profit After Tax (NPAT) is Adjusted Net Profit before the new adjustment for Cloud Computing Arrangements (Software as a Service, “SaaS”) which included a restatement in FY21 of $8.3m and impacted
FY22 by $11.4m, after tax. Refer to Slide 19 and 38 for analysis of these adjustments to reported EBIT and NPAT.
2.Reported Net Profit After Tax (NPAT) is only compared against FY21, as FY20 and FY19 has not been restated for SaaS adjustment, so is not comparable against restated FY21 and FY22.
3.Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, sales through 1-day.co.nz and revenue fromTheMarket.com; but excludes TheMarket.com Gross Merchandise Value(GMV).
4.Includes Click & Collect sales through The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 only, excludes TheMarket.com sales.
Online sales
(3)
$503.3m
Up 39.8% on FY21, making up 15.3%
of total Group Sales, up from 10.5% in
FY21.
Click & Collect
(4)
sales $222.8m
Up 54.9% on FY21 and making up
49.0% of all online sales
$3,071.4
$3,172.8
$3,414.6
$3,294.3
FY19FY20FY21FY22
Group Sales ($m)
$1,028.6
$1,034.9
$1,241.4
$1,164.4
FY19FY20FY21FY22
Gross Profit ($m)
$109.3
$89.3
FY21FY22
Reported NPAT
(2)
($m)
Reported NPAT $89.3m
Down 18.3% against the reported
result of $109.3m NPAT in FY21.
FY20
3.8%
FY22 ANNUAL RESULTS HIGHLIGHTS
Gross Profit margin 35.3%
Down from 36.4% in FY21 but up from
34.7% in FY22 H1, and up from
32.6% in FY20.
5
FY21
3.5%
FY20
12.5%
FY21
6.2%
FY21
18.3%
$74.1
$32.1
$175.5
$96.9
FY19FY20FY21FY22
Comparable NPAT
(1)
($m)
Comparable NPAT $96.9m
NPAT, excluding unusual items and
before cloud computing adjustments.
FY22 $96.9m –down 44.8% on FY21,
and our second best result in the last
15 years.
FY20
118.2%
FY21
44.8%

Carried over 35,600unique
private label products with
sustainable features, accounting
for over $213 million in sales during the
year.
We have continued our sustainability journey in FY22
Diverted 653 tonnes of post-
consumer waste from landfill –
Soft plastics, e-waste, ink and
toners, and other hard to recycle
items
GHG emissions
1
12,334 tCO2e of Scope 1 and 2
emissions, an increase of 0.3%
compared to FY21
$3.7 million raised for New Zealand
charities and communities
1.Refer toThe Warehouse Group 2022 Emissions Inventory Report for full details.
Zero Waste
Diverted 73.4%operational
waste from landfill
SUSTAINABLE & AFFORDABLE
Electrifying our fleet
98% of passenger fleet EV at FY22 –
on the path to 100% EV passenger
fleet by 2025
6
6

1.Pay Equity measures the median hourly salary or wages of female team members against male team members for the same role.A percentage below 100% indicates male
team members’ median hourly rate is higher than female team members.A percentage above 100% indicates female members’ median hourly rate is higher than male team
members.A percentage of 100% indicates gender pay equity.
eNPS
24pts
In-store team
members +8
LOOKING AFTER OUR PEOPLE
7
eNPS
36pts
DC & FC team
members +10
eNPS
48pts
SSO team
members +14
Our Employee NPS (eNPS) has never been
higher, with eNPSscores up across all our team
members, including in-store, distribution and
fulfilment centres, and in our Store Support Office.
100%
Gender Pay
Equity
46.6%
of senior
leaders who
are female
Gender equity remains a key focus for us –we
are pleased to report we have 100% gender pay
equity at Group Level and females hold 46.6% of
our senior leadership roles.
SV1FR
down
36.6%
TRIFR
down
33.6%
The health, safety and wellbeing of our people
and customers is of utmost priority. Our two key
metrics –Severity 1 Frequency Rate and Total
Recordable Injury Frequency Rate –were down
36.6% and 33.6%, respectively.

8
•The Board is pleased to announce a fully imputed final dividend of 10.0 cents per share.
Along with the interim dividend of 10.0 cents per share, this brings the full dividends for the
FY22 year to 20.0 cents per share.
•The Group dividend 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.
•The record date for the dividend will be 17 November 2022 and will be paid on 2 December
2022.
•Given the impact of SaaS adjustment on net profit this year, the dividend pay-out ratio is
81.1% in FY22 (71.6% excluding the SaaS adjustment).
10.0
9.0
13.0
10.0
6.08.0
17.5
10.0
5.0
16.0
17.0
35.5
20.0
FY18FY19FY20FY21FY22
Interim DividendFinalSpecial
Historical dividends (cps)
per share
FY22
Final Dividend
10c
DIVIDENDS
8

GROUP UPDATE
NICK GRAYSTON
9

OUR PURPOSE, VISION, VALUES, AND
CUSTOMER EXPERIENCES ARE ALIGNED
Our Purpose
Helping Kiwis live better every day
iatangata, iarā
Our Vision
To make sustainable living easy and affordable for everyone
kiangāwari, kiautu māmāhokitenohotiakitaiaoa tekatoa
Our Standards and Values
We go all in
#OwnIt
We win for our customers
#ThinkCustomer
We are here for good
#DoGood
Our Strategic Customer Experiences
1st Party Unified Data = Meaningful Experiences for our Customers
Helping customers to find what
they’re looking for, at prices
that are great, every time
Helping customers to enjoy
fast, easy, and reliable ways to
get what they need
Helping customers to have
access to affordable solutions
that help them live sustainably
Helping customers
to feel recognised
and rewarded
Helping customers get easy
and high-quality customer
service every time
12345
Range & ValueAvailability & FulfilmentSustainable & AffordableLoyalty & PaymentsCustomer Service
10

ERPFI
WMS
11
Enterprise Resource Planning Finance and
Inventory (ERPFI) system upgrade is the
most significant of our core system projects
–we delivered the finance module in FY22,
with the inventory module on track for
delivery in April 2023.
We completed the deployment of our
Warehouse Management System (WMS)
solution in our NIDC, the final instalment in
this multi-year programme.
GOMS
Our cloud-based Group Order
Management Solution (GOMS) will deliver
a group solution for all our brands; improve
our customer experience for online orders,
delivery and click and collect; and enable
our ecosystem strategy.
PROGRESS ON MAJOR STRATEGIC INITIATIVES
Our marketplace platform continues to
grow:
•390,000 active customers
•4.2 million products
•6,500 local and international brands
•39 million online sessions
•$110m Gross Merchandise Value
Our Group wide membership programme
launched in October 2021 –with 600k
active members at the end of FY22,
increasing to nearly 700k by the end of Aug
2022.
Growth in emerging grocery business:
•Pantry and chilled items had sales
growth of 40%+
•Grocery is now available in all 89 The
Warehouse stores
•35 individual product lines in our Market
Kitchen private label range.
GROCERY

NEW ZEALAND REACH
OUR STORES
•249 stores from Kaitaiato Invercargill
•40 years of store network in the making
•Optimising our store footprint is an ongoing process
•In FY22:
•10 Warehouse Stationery SWAS stores integrated into
The Warehouse stores, bringing the total to 35
•3 The Warehouse store refurbishments
•3 new Torpedo7 stores
•Our store footprint is an increasingly important part of our
integrated retail value chain –with the increase in click and
collect online shopping.
12

13
MAKING SUSTAINABLE LIVING EASY AND
AFFORDABLE FOR EVERYONE
ECOSYSTEM
OUR INTEGRATED
•We have strong ecosystem foundations in place, with an established
physical footprint and market-leading digital assets.
•Our unique combination of local assets, global partnerships and a strong
financial position means we can scale our business further by investing in
the right capabilities to serve customers holistically, creating greater
customer value over time.
•We launched our Group-wide membership programme, MarketClub,
initially into The Warehouse andTheMarket.com.
•Our strategic investment in Zoom Health, the operator of Zoom
Pharmacy, is an example of where we can partner and invest to provide
convenient and affordable services for all Kiwis.
•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.

14
•Launched MarketClubgroup membership programme across The Warehouse
and TheMarket.com in October 2021.
•This launch was a first step towards a unified Group-wide customer
membership programme that is both rewarding and frictionless, providing
unmatched value for customers.
•Opportunity to enable 4.2+ million unique customer records across the Group,
moving from transactional relationships to engaging customer lifetime value
(1)
.
•MarketClubmembers are more engaged shoppers, with higher average
spend, frequency, and order value behaviours than non-members
(2)
.
•Customers are telling us they love the programme, with members showing
higher in-store and in-app net promoter scores (NPS) vs non-members
(2)
.
•Free and subscription options provide the foundation required to deliver
enhanced convenience, value, and services for customers. MarketClub+
provides free shipping for orders on TheMarket.com.
•Furthermore, every time a customer shops with The Warehouse through
MarketClub, we donate a portion of the sale to their chosen charity.
•Investment is underway into systems and backend tools to support future
customer features and benefits, first-party data, retail media, and the unified
expansion of the programme across the full portfolio of brands.
1.Source: Salesforce Service Cloud
2.Source: TWG Insights
Launched
October
2021
Acquired nearly
600k
active members
in FY22
(2)
MARKETCLUB
OUR GROUP MEMBERSHIP PROGRAMME
IS GATHERING MOMENTUM
56%
of Torpedo7 and
Noel Leeming
sales toloyalty
members
(2)

6.5k
brands
★★★★★
Customer review
390k
active
customers
4.2m
products
Average per
customer spend
+14%
FY22 vs FY21
39m
online sessions
$110m
GMV
1
15
1. Gross Merchandise Value
GET IT ALL DONE

16
MARKETMEDIA
OUR RETAIL MEDIA NETWORK
1.Source: TWG Insights, SimilarWeb, AppAnnie, and Bellwether
2.Source: TWG Insights
CONNECTING SUPPLIERS WITH NEW ZEALAND’S
LARGEST INTEGRATED RETAIL AUDIENCE
(1)
•The goal of MarketMediais to allow suppliers to reach and
connect with millions of consumers based on real-time
purchasing behaviour and intent signals, providing a holistic
view of customer behaviour, measurable results, and closed-
loop targeting and performance insights linked all the way
through to transactions.
•For our customers, this means we can offer better shopping
experiences with more deals and relevant recommendations
that are right for them.
•For our suppliers, this means we can give them powerful ways
to grow their businesses across our family of brands.
•For advertisers, MarketMediawill provide an access point into
our private ad marketplace, enabling advertisers to directly
connect with New Zealand’s largest integrated retail audience
across the Group’s top-ranked sites, apps, and millions of
weekly visits to our stores.
$20.9
million
in FY22 retail
media revenue
(1)
+132%
growth in digital
retail media
revenue vs
FY21
(2)
Launching
retail media
network

FINANCIALS
JONATHAN ORAM
GROUP
17

For the year ended 31 July 2022
1.Operating Profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure, refer to note 2.0 of the Financial Statements for a reconciliation to reported Operating Profit. A reconciliation
between Operating Profit, Earnings Before Interest and Taxation (EBIT) and NPAT is located on Slide 38 and in Note 5 of the financial statements for the year ended 31 July 2022.
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 38 and in Note 5 of the
financial statements for the year ended 31 July 2022.
3.Comparable Adjusted Net Profit After Tax (NPAT) is Adjusted Net Profit before the new adjustment for Cloud Computing Arrangements (Software as a Service, “SaaS”) which included a
restatement in FY21 of $8.3m and impacted FY22 by $11.4m, after tax. Refer to Slide 19 and 38 for analysis of these adjustmentsto reported EBIT and NPAT.
The financial information in this presentation, consistent with the financial
statements, is presented post the change in how the Group accounts for
Cloud Computing Arrangements (Software as a Service, “SaaS Adjustment”).
•Group sales were down 3.5% in FY22 compared to FY21, as our Auckland
stores were closed for 84 days and stores New Zealand wide were closed for at
least 21 days in the first half of the year.
•The second half saw an improvement with sales decline of 2.6% in FY22 H2,
compared to FY21 H2, versus 4.3% decline in the first half of this year, but was
still disrupted with 74 days at Red level and Omicron peaking.
•The Warehouse and Warehouse Stationery experienced a decline in sales of
4.3% and 9.1%, respectively, while Noel Leeming was less impacted with
decline of 2.8%.
•Torpedo7 continued growth in sales up 8.0% year on year, with three new
stores opening during the year.
•Gross profit margin was 35.3% for the full year and while a decrease compared
to a record FY21, represents an improvement from 34.7% gross profit margin in
FY22 H1, as trading normalised in the second half and increased freight costs
were absorbed.
•CODB increased 3.5% and increased as a percentage of sales to 31.8%, driven
by increased advertising and promotion including grocery, digital media and
TheMarket.com, and continued COVID-19 safety costs, particularly in H1.
•Excluding the impact of the SaaS adjustment, Comparable Adjusted NPAT is
$96.9m –our second best result in the last 15 years.
•Lower revenue and gross profit, combined with higher working capital due to
increased stock on hand at year end, impacted operating cash flow.
$ million
FY22FY21Variance
Group Sales
3,294.3 3,414.6
(3.5%)
Gross Profit
1,164.4 1,241.4
(6.2%)
Gross Profit Margin %35.3%36.4%(110) bps
Cost of doing business (“CODB”)
1,047.6 1,012.4
3.5%
CODB %31.8%29.7%210 bps
Operating Profit
1
116.8 229.0
(49.0%)
Operating Profit Margin %3.5%6.7%(320) bps
NPAT (reported)
89.3 109.3
(18.3%)
NPAT (adjusted)
2
85.5 167.2
(48.9%)
Comparable NPAT
3
96.9175.5(44.8%)
Operating Cash Flow
105.4 226.0
(53.3%)
Dividends (cps)
20.0 35.5
(15.5)
PERFORMANCE
GROUP
18

•In April 2021 IFRIC concluded that costs incurred to configure or customise software in Cloud Computing Arrangements (Software as a Service, “SaaS”)
can be recognised as intangible assets only if the activities create an intangible asset that the Group controls. Costs that do not result in intangible assets
are expensed as incurred.
•The Group previously capitalised these costs as intangible software assets. As a consequence of the IFRIC decision, the Grouphas changed its accounting
policy relating to implementation costs for cloud computing arrangements resulting in a retrospective restatement of the Group’sfinancial statements (SaaS
Adjustment). This has caused a reduction in the carrying value of intangible software assets by $63.6 million (FY21: $39.8 million),and a corresponding
reduction in the amortisation expense of $9.3 million (FY21: $6.0 million) in the Income Statement, before tax.In some instances, the implementation costs
associated with the SaaS project can be treated as a prepayment and amortised.
•The decrease in the amortisation expense was offset by the recognition of an expense for the configuration and customisation costs that were previously
capitalised, resulting in a net reduction in pre-tax profit of $15.9 million (2021: $11.6 million).
•The Group is part way through a multiyear programme to replace its core Information and Technology systems from being predominantly on-premise to a
cloud-based architecture.
FY22 RESULTS –SaaS Adjustment
Before Policy change
(excl IFRS16)
SaaS AdjustmentAfter Policy change
(excl IFRS16)
$ million
FY22 FY21FY22FY21FY22FY21
Group Sales
3,294.3 3,414.6 --3,294.3 3,414.6
Gross Profit
1,164.4 1,241.4 --1,164.4 1,241.4
Employee expense
(564.8)(573.7)(10.6)(8.4)(575.4)(582.1)
Depreciation and amortisation expense
(197.4)(189.8)9.3 6.0 (188.1)(183.9)
Other operating expenses
(269.5)(237.2)(14.6)(9.2)(284.1)(246.4)
Operating Profit
1
132.7 240.6 (15.9)(11.6)116.8 229.0
Adjusted NPAT
2
96.9175.5(11.4)(8.3)85.5167.2
1.Operating Profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between Operating Profit and Earnings Before Interest and Taxation (EBIT) is located on Slide 38
and in Note 5 of the financial statements for the year ending 31 July 2022.
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 38 and in Note 5 of the financial
statements for the year ended 31 July 2022.
19

•Sales improved in the second half with decline in sales of 2.6% with some recovery from the challenging first half when the country
was in lock down.
•Gross Profit also showed signs of recovery with a Gross Profit decrease of 3.6% compared to 8.5% in the first half as trading
normalised.
•This was underpinned by an improvement in Gross Profit margin, with a decline of 38 bps in the second half versus last year as freight
costs stabilised and online sales reduced from their H1 highs.
•CODB was 6.3% higher than last year in the first half, primarily due to COVID-19 driven costs with extra staff and compliance costs in
our stores and Distribution Centres.
FY22 RESULTS –H1 and H2 performance
20
For the year ended 31 July 2022
H1H2
$ million
FY22 H1 FY21 H1Variance %FY22 H2FY21 H2Variance %
Group Sales1,730.0 1,808.3 (4.3%)
1,564.31,606.3
(2.6%)
Gross Profit599.6 655.4 (8.5%)
564.8586.0
(3.6%)
Gross Profit Margin %
34.7%36.2%
(150 bps)
36.1%36.5%
(38 bps)
Cost of doing business (“CODB”)534.1 502.4 6.3%
513.5510.0
0.7%
CODB %
30.9%27.7%
320 bps
32.8%31.7%
108 bps
Operating Profit
1
65.5 153.0 (57.2%)
51.376.0
(32.5%)
Operating Profit Margin %
3.8%8.5%
(470 bps)
3.3%4.7%
(145 bps)
Adjusted NPAT
2
48.0 111.0 (56.8%)
37.556.2
(33.3%)
Online sales as a % of sales
3
19.4%11.1%835 bps
10.7%10.0%
74 bps
1.Operating Profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between Operating Profit and Earnings Before Interest and Taxation (EBIT) is located on Slide 38 and in
Note 5 of the financial statements for the year ending 31 July 2022.
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 38 and in Note 5 of the financial
statements for the year ended 31 July 2022.
3.Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, sales through 1-day.co.nz and revenue fromTheMarket.com; but excludes TheMarket.com Gross
Merchandise Value(GMV).

1,683.4
1,808.3
1,730.0
1,489.4
1,606.3
1,564.3
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
202020212022
H1H2
$mFY22 H1FY21 H1FY20 H1
Var % to
FY21 H1
Var % to
FY20 H1FY22 H2FY21 H2FY20 H2
Var % to
FY21 H2
Var % to
FY20 H2FY22FY21FY20
Var % to
FY21
Var % to
FY20
The Warehouse895.4 967.3 938.8 (7.4%)(4.6%)831.5837.6767.2(0.7%)8.4%1,726.9 1,804.9 1,706.0 (4.3%)1.2%
Warehouse Stationery122.0 136.6 133.8 (10.7%)(8.8%)127.7138.0135.0(7.5%)(5.4%)249.7 274.6 268.8 (9.1%)(7.1%)
Noel Leeming582.7 593.2 512.8 (1.8%)13.6%514.0535.0497.2(3.9%)3.4%1,096.7 1,128.2 1,010.0 (2.8%)8.6%
Torpedo797.5 84.9 65.8 14.8%48.2%74.073.864.10.3%15.4%171.5 158.7 129.9 8.1%32.0%
Other
1
32.4 26.3 32.2 23.2%0.6%17.1 21.9 25.9 (21.9%)(34.0%)49.5 48.2 58.1 2.7%(14.8%)
Total Group Sales1,730.0 1,808.3 1,683.4 (4.3%)2.8%1,564.301,606.301,489.40(2.6%)5.0%3,294.3 3,414.6 3,172.8 (3.5%)3.8%
•FY22 H1 sales were significantly impacted due to COVID-19
lockdowns including 84 days in Auckland and at least 21 days
throughout the rest of New Zealand when our stores were forced
to close.
•Although online sales were strong, this did not replace the 12.1%
decrease in foot traffic we saw through our stores across the full
year.
•The Warehouse and Warehouse Stationery were most impacted
in the first half, but experienced the biggest improvement in the
second half.
•Torpedo7 had a very strong first half with 14.8% growth vs HY21
H1, however this tapered in the second half with growth of 0.3%
compared to FY21 H2.
•Total Group sales improved from a decline of 4.3% in H1 to a
decline of 2.6% in H2 –both periods saw strong growth vs 2020.
1.Other sales includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding gross merchandise value(GMV)), and other Group operations and eliminations.
FY22 SALES –HALF YEAR SALES TREND
21
H2
2.6%
H1
4.3%

42.1%
48.3%
23.3%
37.9%
40.3%
47.5%
23.2%
36.0%
The WarehouseWarehouse StationeryNoel LeemingTorpedo7
FY21FY22
Gross Profit Margin (%) by Brand
•Overall trend since 2018 has been a significant improvement in Group Gross Profit Margin, which is up 220 basis points over this period.
•FY22 Group Gross Profit Margin decreased 110 basis points versus last year to 35.3%.
•The Warehouse Gross Profit Margin was the main driver of margin decline over the year as the largest brand (52% of sales) experienced a
180 bps decline in the year.
Group Gross Profit Margin (%)
FY21 to FY22
Group Gross Profit Margin (%)
33.1%
33.5%
32.6%
36.4%
35.3%
FY18FY19FY20FY21FY22
GROSS PROFIT MARGIN
22

•Cost of doing business (“CODB”) increased in FY22 due to other expenses
including:
•increased advertising and promotion in TheMarket.com to grow
GMV, grocery and digital media;
•COVID-19 related non-labour compliance costs in our stores and
Distribution Centres; and
•increased IT expenses on projects such as MDM, ERPFI and core
infrastructure services.
•In FY22, SaaS adjustments have increased FY22 CODB by $15.9 million,
made up of:
•$10.6 million increase in employee expenses (FY21: $8.4m);
•$14.6 million increase in other expenses (FY21: $9.2m); offset by
•$9.3 million decrease in depreciation expenses (FY21: $6.0m).
•Employee expenses reduced by $6.7 million versus last year with
incentives across the Group $30.1 million lower, including the all of
company cash bonus paid in FY21 of $8.6 million.
•On a percentage of sales basis, excluding SaaS adjustments, CODB
increased from 29.4% to 31.3% in FY22.With the additional IT-related
costs which are now expensed rather than capitalised, FY21 CODB would
have been 29.7%, increasing to 31.8% in FY22.
23
17.5%
17.0%
17.7%
16.9%
17.1%
2.0%
2.0%
1.8%
1.6%
1.8%
5.3%
5.4%
4.3%
3.9%
4.1%
5.2%
5.5%
7.2%
7.0%
8.2%
30.0%
29.8%
31.0%
29.4%
31.3%
FY18FY19FY20FY21FY22
Employee ExpenseDepreciation and Amortisation Expense*Lease Expense*Other Expense
COST OF DOING BUSINESS
* Cost of doing business excludes NZ IFRS 16, as presented in the Income Statement
CODB Movement ($m) –FY21 to FY22
CODB breakdown –Pre-SaaS cost as % of sales
(Post-SaaS)
(Post-SaaS)
29.7%
31.8%

$ million
FY22FY21Variance
Inventory
562.3 457.2
105.1
Trade and other receivables
99.5 84.0
15.5
Trade and other payables
(480.5)(436.6)
(43.9)
Provisions
(71.0)(97.9)
26.9
Working Capital
110.3 6.7
103.6
Associate
3.8 -
3.8
Fixed Assets
303.2 248.8
54.4
Funds Employed
417.3 255.5
161.8
Tax Assets
90.7 85.1
5.6
Derivatives
28.8 5.8
23.0
Right of Use Assets
673.3 736.5
(63.2)
Goodwill and Brands
73.0 73.0
-
Capital Employed
1,283.1 1,155.9
127.2
Shareholders Equity
421.9 426.9
(5.0)
Minority Interests
(0.8)(2.7)
1.9
Net Debt / (Cash)
41.2 (160.5)
201.7
Net Lease Liability
820.8 892.2
(71.4)
Sources of Funds
1,283.1 1,155.9
127.2
Liquidity
378.8490.5(111.7)
24
•Group working capital position has increased at the end of FY22due to
increased level of inventory, partially offset by an increased payable
balance.
•Inventory increased at year end due to a combination of cost inflation,
continued delays, and increased ordering on key continuity lines to ensure
we have stock leading into the busy peak periods. This has increased
inventory, as well as increased trade payables.
•Fixed assets increased due to continued systems investment, particularly in
ERPFI, Group Order Management System and Master Data Management
systems. Store development expenditure increased with the integration of a
further 10 SWAS stores and refurbishment of 3 The Warehouse stores.
•Net cash flow decreased $201.7 million resulting in a year end net debt
position of $41.2 million.
•We have increased our committed bank facilities to $420 million, (from $330
million in FY21), providing the Group with total liquidity of $378.8 million at
year end (FY21: $480.0 million) and within the Group’s target liquidity
requirement of $350 million -$450 million.
As at 31 July 2022
BALANCE SHEET

•FY22 saw increased inventory through a combination of cost inflation,
continued delays and purchasing to secure peak trading stock in the wake of
uncertain shipping costs and booking slots.
•Goods in transit at year end were $94.1 million, up 43.0% from last year,
and indicative of these ongoing delays.
•As a result of increased inventory and less immediate sell through, Group
stockturn
2
decreased from 5.3 in FY21 to 4.9 in FY22.
•Aged inventory
3
increased slightly from last year from 16.1% in FY21 to
17.7% in FY22, but well below historical highs of 28.1% in FY20 and 23.4%
in FY19.
•Overall, inventory provisioning decreased $4.7 million versus last year.
•SKU reduction –which optimises inventory management and delivers the
best products for customers –decreased 3% in The Warehouse and 14% in
Warehouse Stationery.
•Part of the increase in FY22 is due to inventory cost inflation. We do expect
inventory levels to drop over FY23 as weeks of cover are reduced.
1.The Warehouse and Warehouse Stationery are combined due to the one pool of stock initiative.
2.Stockturn is calculated over the last 12 months.
3.Aged inventory is stock on hand greater than 6 months as a percentage of finished goods (excluding
goods in transit).
INVENTORY MANAGEMENT
523.8
517.8
393.6
457.2
562.3
FY18FY19FY20FY21FY22
Closing Inventory ($million)
4.3
8.5
2.8
4.1
7.6
2.5
The Warehouse and
Warehouse Stationery
Noel LeemingTorpedo7
FY21FY22
Stockturn by Brand (times)
1, 2
25

$ million
FY22FY21Variance
Trading EBITDA
1
304.9 412.9
(108.0)
Working Capital
(117.5)(34.8)
(82.7)
Restructuring costs
-(16.1)
16.1
Wage subsidy
-(67.6)
67.6
Taxes Paid
(42.5)(32.1)
(10.4)
Interest Paid (Lease interest)
2
(36.8)(37.9)
1.1
Other items
(2.7)1.6
(4.3)
Operating Cash Flow
105.4 226.0
(120.6)
Capital Expenditure
(107.5)(61.9)
(45.6)
Divestments -PPE
0.5 0.2
0.3
Acquisitions
(6.2)(0.2)
(6.0)
Lease principal repayments
(98.3)(99.4)
1.1
Close out derivatives
-(9.8)
9.8
Dividends Received
0.4 0.3
0.1
Dividends Paid
(96.0)(62.7)
(33.3)
Net Cash Flow
(201.7)(7.6)
(194.1)
Opening Net Cash / (Net Debt)
160.5 168.1
(7.6)
Closing Net Cash / (Net Debt)
(41.2)160.5
(201.7)
1.Trading EBITDA represents Earnings before interest, taxation, unusual items, depreciation and amortisation.
2.Interest paid includes $36.7m interest on lease liabilities (FY21 : $38.5m) . Refer to Note 2.5 and 3.5 of the
Financial Statements for the year ended 31 July 2022.
26
•Operating cash flow decreased to $105.4 million in FY22, compared with
$226.0 million in FY21 due to reduced Trading EBITDA and increased
working capital as a result of increased inventory levels.
•The restructuring costs and the wage subsidy repayment which occurred in
FY21 did not occur in FY22.
•Capital expenditure increased significantly this year, as we invest in core
systems and other IT and digital infrastructure. Post-SaaS adjusted capital
expenditure was $107.5 million in FY22 compared to $61.9 million in FY21.
•Acquisitions in the year relate to the Group’s 26% interest in ZOOM Health
Limited in August 2021 for $4.5 million and increased ownership in
TheMarket.com.
•The Group returned to paying dividends in FY21 –resulting in FY21 final
and FY22 interim dividends being paid in FY22 (total 27.5 cps), compared to
the FY21 interim dividend and special dividend being paid in FY21 (total
18.0 cps).
For the year ended 31 July 2022
CASH FLOW

•Capital expenditure increased in FY22, as indicated, as we increased investment in core
systems and infrastructure. FY22 capex on a post-SaaS adjusted basis was $107.5 million
versus $63.7 million in FY21, an increase of 69%.
•The level of capital expenditure is more than 2 x historical depreciation as the Group
addresses deferred investment in core systems and builds new digital assets.
•The Group’s major investments included continued development of core systems including the
ERPFI, Group Order Management System (GOMS), Warehouse Management System and
Master Data Management.
•Store development investment include the integration of 10 SWAS stores, refurbishment of 3
The Warehouse stores, and the opening of 3 new Torpedo7 stores.
•We expect capital expenditure in FY23 to be in the range of $115 -$135 million, and $145 -
$165 million on a comparable basis (pre-SaaS Adjustment).
$million
FY22
Pre-SaaS
SaaS
Adjust.
FY22
Post-SaaS
FY21
Post-SaaS
Core Systems
39.8 (18.8)21.0 9.0
Store Development
36.0 -36.0 13.7
Other Information Systems
26.9 (9.8)17.1 9.9
Digital and Customer
10.9 (3.9)7.0 10.5
Supply Chain
5.9 -5.9 4.9
Other
21.1(0.6)20.5 15.7
Total Capital Expenditure
140.6 (33.1)107.5 63.7
19.5%
33.5%
16.0%
6.5%
5.5%
19.0%
$107.5m
Capex Spend
For the year ended 31 July 2022
CAPITAL EXPENDITURE
27

28
DIVISIONAL SUMMARY
Gross ProfitOperating Profit
FY22
$million
%margin
FY21
$million
%margin
Variance
vs FY21
FY22
$million
%margin
FY21
$million
%margin
Variance
vs FY21
•Sales were $1.7b, down 4.3%, impacted by decrease in foot traffic of 12.5%
•Online sales increased 60.5%, making up 10.5% of total sales.
•Click & Collect sales increased 86.8%, making up 45.9% of online sales.
•SaaS Adjustment had a $12.0 million impact on The Warehouse Operating Profit.
696.6
40.3%
759.6
42.1%
(8.3%)
(180bps)
75.7
4.4%
177.9
9.9%
(57.4%)
(550bps)
•Sales were $249.7m, down 9.1%, impacted by foot traffic down 12.6%.
•Online sales increased 20.8%, making up 13.7% of total sales.
•Click & Collect sales increased 37.8%, making up 25.6% of online sales.
•No SaaS Adjustment in Warehouse Stationery as this is included in The Warehouse.
118.6
47.5%
132.5
48.3%
(10.5%)
(80bps)
23.1
9.2%
34.3
12.5%
(32.8%)
(330bps)
•Sales were $1.1b, down 2.8%, but the 2nd highest sales result in the brand’s history.
•Online sales increased 50.3%, making up 16.3% of total sales.
•Click & Collect sales increased 40.4%, making up 57.7% of online sales.
•SaaS Adjustment had a $0.9 million impact on Noel Leeming Operating Profit.
254.1
23.2%
262.7
23.3%
(3.3%)
(10bps)
53.9
4.9%
64.7
5.7%
(16.7%)
(80bps)
•Sales were $171.5m, up 8.0% due to 3 new stores, and increased online
participation.
•Online sales increased 31.0%, making up 35.3% of total sales.
•Click & Collect sales increased 41.9%, making up 46.2% of online sales.
•SaaS Adjustment had a $2.9 million impact on Torpedo7 Operating Profit.
61.7
36.0%
60.2
37.9%
2.6%
(190bps)
(2.2)
(1.3%)
1.6
1.0%
(241.2%)
(230bps)
•TheMarket.com sales reflect first party sales and commission on third party sales.
•Gross Merchandise Value (total sales value) increased to $110 million in FY22.
•Platform growth driven by 390,000 active customers, with 6,500 brands, 4.2 million
products, and increased customer spend of 14% year on year.
(24.7)(20.7)(19.5%)

FY23 OUTLOOK
29

30
•We are cautious as we approach Q2 and one of our busiest times of year.
•Cost of living conditions continue to be challenging and we expect to see New
Zealanders continue to seek out great value products across our brands.
•Given the ongoing inconsistency in container freight arriving in to New Zealand, we
have taken action to ensure we have good levels of summer stock available across
all our brands.
•While August is the quietest trading month of the year, we have made a positive
start and traded ahead of our expectations. Looking ahead and as in previous
years, any earnings outlook for FY23 will be dependent on the critical second
quarter peak trading period.
•We expect capital expenditure to remain at elevated levels in the range of $115 -
$135 million, post SaaS adjustment, as we continue to invest in the business to
build a world class ecosystem.
FY23 OUTLOOK

THANK YOU

APPENDIX A
32
DIVISIONAL RESULTS

33
NEW ZEALAND’S LEADER ON VALUE
33
For the year ended 31 July 2022
•Sales were down 4.3% for the year, due to COVID-19 restrictions and impacts,
and stock availability as we experienced disruptions in our supply chain.
•Foot traffic was down 12.5% leading to a 13.1% reduction in transactions. This
was partly offset by an average basket increase of 9.7%.
•Sales improved in the second half, modestly down 0.7%, but with sales growth
of 0.4% in Q4.
•Online sales increased by 60.5% year on year, driven by theCOVID-19
lockdown store closures and customers moving to shop online. Click and
Collect sales were up 86.8%, making up 45.9% of online sales.
•Gross Profit Margin was down 180 bps, due to higher freight and online
fulfilment costs, mostly in H1.
•Grocery was the growth category and is now available in all 89 stores, with
growth in pantry and chilled items sales increasing more than 40%.
•Poorest performing categories were Apparel and Home impacted by sales
declines in Footwear, Intimates, Leisure and Home décor, and the removal of
product lines in Fine Jewellery and Fireworks.
•CODB increased by 6.6% due to planned wage increases and an investment in
health and safety to keep team members safe.
•The Mosgiel closure in January resulted in the decrease in stores since FY21.
$million
FY22FY21Variance
Sales
1,726.9 1,804.9
(4.3%)
Gross Profit
696.6 759.6
(8.3%)
Gross Margin %40.3%42.1%(180) bps
Cost of Doing Business (CODB)
620.9581.7
6.7%
CODB %35.9%32.2%+ 370 bps
Operating Profit
75.7 177.9
(57.0%)
Operating Margin %4.4%9.9%(550) Bps
Online sales
181.3 112.9
60.5%
Online as a % of sales
10.5%6.3%
+424 bps
Click and Collect as % of online sales
45.9%39.4%
+645 bps
Number of stores
8990
(1)

34
SWAS STRATEGY DELIVERING IMPROVEMENTS
FOR CUSTOMERS AND THE BUSINESS
34
•Sales were down 9.1% for the year, with transactions down 9.4% and foot
traffic down 12.6%. The first half was most impacted with COVID-19
lockdown, while the second half saw some recovery with H2 sales down 7.5%.
•Online sales increased 20.8% compared to the prior year, making up 13.7% of
total sales with Click & Collect growing 37.4%, making up 25.6% of online
sales.
•Gross Profit decreased 10.5% to $118.6 million, through lower sales volumes
and rebates, and an 80bps deterioration in Gross Profit Margin. This is driven
by missed rebates due to lower volumes in Technology, particularly in H1.
•CODB decreased by 2.7% due to a reduction in lease costs and advertising,
offset by investment in store labour with respect to in-store COVID-19
compliance requirements.
•Operating Profit decreased 32.8% to $23.1 million, with Operating Profit
Margin declining 330bps to 9.2%.
•Stationery, Print and Consumable categories experienced sales declines in the
first half, while Print & Copy Centres were heavily impacted as they were only
able to resume trading in Level 3. The second half saw improved trading in
both P&CC and Digital Photos and Consumables.
•Penrose and Wellington stores were closed in FY22, while 10 SWAS
integrations were implemented in FY22 bringing the total SWAS to 35.
$millionFY22FY21Variance
Sales
249.7 274.6
(9.1%)
Gross Profit
118.6 132.5
(10.5%)
Gross Margin %47.5%48.3%(80) bps
Cost of Doing Business (CODB)
95.5 98.2
(2.7%)
CODB %38.3%35.8%+250 bps
Operating Profit
23.1 34.3
(32.8%)
Operating Margin %9.2%12.5%(330) bps
Online sales
34.3 28.4
20.8%
Online as a % of sales
13.7%10.3%
+340 bps
Click and Collect as % of online sales
25.6%22.5%
+315 bps
Number of stores
6870
(2)
For the year ended 31 July 2022

35
STRONG GLOBAL BRANDS
AND CUSTOMER RELATIONSHIPS, UNDERPINNED BY SERVICE
$millionFY22FY21Variance
Sales
1,096.7 1,128.2
(2.8%)
Gross Profit
254.1 262.7
(3.3%)
Gross Profit Margin %
23.2%23.3%(10) bps
Cost of doing business (CODB)
200.2 198.0
1.1%
CODB %
18.3%17.6%+70 bps
Operating Profit
53.9 64.7
(16.7%)
Operating Profit Margin %
4.9%5.7%(80) bps
Online sales
178.3 118.6 50.3%
Online as a % of sales
16.3%10.5%+ 574 bps
Click and Collect as a % of online sales
57.7%61.8%(406) bps
Number of stores
6871
(3)
35
•Sales were down 2.8% for the year. However, we ended FY22 with the
second highest sales result in the brand’s history at $1,096.7 million.
•Online sales increased 50.3%, contributing more than 16.0% of total sales.
Customers are increasingly selecting Click & Collect as their favoured
option for fulfilling their online purchase, comprising 57.7% of online sales.
•Seasonal Appliances, Smart Home and TVs all delivered sales growth in
the year on year, however, these were offset by all other product categories
delivering lower sales than FY21.Cellular was particularly impacted due to
stock availability.
•For the full year, Gross Profit Margin % was down 10bps to 23.2%.
However, Gross Profit margin % improved in H2, recovering from H1 where
increased online sales came at the expense of Gross Profit Margin % due
to sales mix.
•CODB came in slightly higher than in FY21, resulting in an Operating Profit
of $53.9m, down 16.7% on FY21.
•During FY22, we closed St LukesWestfield, Queen Street Auckland and the
Glenfield Clearance Centre.
For the year ended 31 July 2022

36
OPERATIONAL IMPROVEMENTS
AND INVESTMENT RESULT IN CONTINUED SALES MOMENTUM
36
•Torpedo7 continued sales growth trajectory of the past 2 years with sales
growth of 8.0%. This was very strong in the first half with sales up 14.8%, but
did slow in the second half with sales up 0.3%, impacted by the Bike category
comparing to a very strong prior period growth, and a faster than planned shift
towards Torpedo7 private label with a lower average selling price.
•Online channel continues to grow with a 31.0% increase in online sales,
making up 35.3% of online sales andClick & Collect fulfilment increasing
41.9%, making up 46.2% of all online sales.
•Gross Profit increased 2.6% to $61.7 million, with FY21 H1 benefitting from
initiatives to reduce aged stock. Gross Profit Margin was impacted by
increased private label sales and increased online sales mix.
•CODB increased due to additional staffing with respect to COVID-19
compliance requirements, additional freight costs.
•FY22 Operating Profit was $0.7m before the SaaS Adjustment, with SaaS
Adjustment of $2.9m due to the implementation of a new ERP for Torpedo7,
resulting in $2.2m Operating Loss for the year.
•The number of Torpedo7 stores increased to 24 with Invercargill, Whangarei
and Petone opening during the financial year.
For the year ended 31 July 2022
$million
FY22FY21Variance
Retail Sales
171.5158.7
8.0%
Gross Profit
61.760.2
2.6%
Gross Profit Margin %36.0%37.9%(190) bps
Cost of doing business (CODB)
63.958.6
9.2%
CODB %37.3%36.9%40 bps
Operating Profit
(2.2)1.6
(241.2%)
Operating Profit Margin %-1.3%1.0%(230) bps
Online sales
60.646.3
31.0%
Online as a % of sales
35.3%29.2%
+618 bps
Click and Collect as % of online sales
46.2%42.6%
+358 bps
Number of stores
2421
3

APPENDIX B
37
ADDITIONAL INFORMATION

EBITNPAT
$ million
FY22FY21FY22FY21
Comparable Adjusted Earnings
132.7 240.6 96.9 175.5
SaaS Adjustment
(15.9)(11.6)(11.4)(8.3)
Restated Adjusted Earnings
1, 3
116.8 229.0 85.5 167.2
Restructuring costs
-(16.1)-(11.6)
Interest rate hedge derivatives write-off
-(3.3)-(2.4)
COVID-19 Wage subsidy
-(67.6)-(48.6)
Adjustments for NZIFRS 16
2
42.0 40.6 3.8 1.4
Income tax on property disposals
-3.3
Reported Earnings
3
158.8 182.6 89.3 109.3
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 $42.0m in FY22 (FY21: $40.6m) 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 can also be found inNote 5 of the Financial Statements for the year ended 31 July 2022.
ADJUSTED &COMPARABLE EARNINGS
38
For the year ended 31 July 2022
Comparable Earnings
•As a consequence of the IFRIC decision in April 2021, stating that
some costs relating to cloud computing arrangements cannot be
capitalised but need to be expensed as incurred, the Group has
changed its accounting policy relating to implementation costs for
cloud computing arrangements, resulting in a retrospective
restatement of the Group’s financial statements.
•This has resulted in recognition of expense for configuration and
customisation costs that were previously capitalised, offset by a
decrease in amortisation expense on the reduced carrying value of
intangible software assets, resulting in a net reduction in pre-tax
profit of $15.9 million in FY22 (FY21: $11.6 million).
Adjusted Earnings
•All unusual Agile restructuring costs are complete, so there have
been no expenses in relation to these in FY22.
•The wage subsidy received in March 2020 was voluntarily repaid to
the Government in December 2020 (in FY21) and was classified as
an unusual item.

0
200
400
600
800
1,000
1,200
202020212022
Q1Q2Q3Q4
$m
FY22 Q1FY21 Q1
Var % to
FY21 Q1
FY22 Q2FY21 Q2
Var % to
FY21 Q2
FY22 Q3FY21 Q3
Var % to
FY21 Q3
FY22 Q4FY21 Q4
Var % to
FY21 Q4
The Warehouse298.2 379.5 (21.4%)597.2587.81.6%401.9 409.9 (2.0%)429.6 427.7 0.4%
Warehouse Stationery48.2 61.8 (22.0%)73.874.8(1.3%)67.4 71.8 (6.1%)60.3 66.2 (8.9%)
Noel Leeming238.7 250.8 (4.8%)344.0342.40.5%256.5 263.0 (2.5%)257.5 272.0 (5.3%)
Torpedo734.2 33.8 1.2%63.351.123.9%36.5 35.4 3.1%37.5 38.5 (2.6%)
Other
1
11.40 12.60
(9.5%)
21.00 13.70
53.3%
9.30 11.10
(16.2%)
7.80 10.70
(27.1%)
Total Group Sales630.7 738.5 (14.6%)1,099.31,069.82.8%771.6 791.2 (2.5%)792.7 815.1 (2.7%)
•Q1 sales significantly impacted due to COVID-19 lockdowns
put in place just 2 weeks into the start of the financial year –
with Q1 sales down 14.6% on FY21 Q1.
•Q2 sales rebounded to 2.8% up on FY21 Q2,as the country
moved to Level 3, then subsequently to the traffic light system.
This was our best Q2 ever.
•Q3 sales decreased compared to FY21 Q3 as New Zealand
entered the traffic light system, but largely still in Red setting for
74 out of 91 days of the quarter –resulting in store foot traffic
down 13.0% compared to FY21.
•Q4 sales has seen some improvement –particularly in The
Warehouse with sales up 0.4%, and foot traffic seeing an
improving trend with Q4 down 9.9% on last year.
Improvements in The Warehouse were offset by declines in
other brands compared to a very strong FY21 Q4.
1.Other sales includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding gross merchandise value(GMV)), and other Group operations and eliminations.
FY22 SALES –QUARTERLY TREND
39

•FY22 Q1 sales were significantly impacted due to COVID-19 lockdowns which were put in place just 2 weeks into the start of the quarter –
decreasing sales 14.6% compared to FY21 Q1 and 9.2% compared to FY20 Q1.
•Sales rebounded in the second quarter as the country moved out of Level 3 –allowing retail stores to open once again, then subsequently to
the traffic light system, with sales increasing 2.8% in Q2 vs FY21 Q2 and up 11.2% vs FY20 Q2. FY22 Q3 saw modest sales compared to a
very strong comparative period in FY21 Q3, resulting in Q3 sales decreasing 2.5% against FY21.
•The Warehouse and Warehouse Stationery were most impacted during COVID-19 restrictions while Torpedo7 weathered the disruption
extremely well, with sales growth in each quarter, except for Q4.
•The Warehouse has rebounded well in Q4, while all other brands experienced sales decrease, and The Warehouse growth of 0.4% in Q4 vs
FY21 Q4.
2021
COVID-19
Level 4
lockdown
1
2021
COVID-19
Level 3
lockdown
2
FY22 SALES –WEEKLY SALES TRENDS
40
1.In 2021 COVID-19
Level 4 lockdown
lasted from 17
August to 21
September in
Auckland and until 2
September New
Zealand wide.
2.In 2021, COVID-19
Level 3 lockdown
lasted from 21
September to 9
November in
Auckland and from
2 September to 7
September New
Zealand wide.
Q1Q2Q3Q4

WMS
Warehouse Mgt
NIDC1 completed
ERP Finance &
Inventory Management
HCM/HR System
Release1
Non Trade
ERP
Merchandise Planning
Forecast & ReplenishmentAssortment Planning/Ranging
Middleware
CONNECT framework
Conceptualisation,
Design and Build
2
3
5
1
6
8
7
4
9
Master Data
Management (MDM)
PIM
complete
ERP
Store Inventory/POS
NLG Stores
Order Management
System (GOMS)
Digital Order Mgt & Customer Service (3P)Sales Order Fulfillment (TWL/1P)
Aug 2022
Supply Chain
Optimisation/Automation
Yard Management
NIFC Automation
NIFC Slotting
41
Jul 2023
Jan 2023
NLG PIM
Supplier Master
90+ Integrations for
ERP Inventory, etc
Continued for other systems
Customer
Engagement/Digital
Marketplace (1P + 3P)App Development
TWL Stores
Release2 Trade and Inventory
DOM, CS, SOF (WSL/1P)
CORE SYSTEMS AND DIGITAL ROADMAP

TermDefinitionTermDefinition
C&CClick & CollectMDMMaster Data Management
CODBCost of Doing BusinessNIDCNorth Island Distribution Centre
COGSCost of Goods SoldNIFCNorth Island Fulfilment Centre
DCDistribution CentreNLNoel Leeming
DIFOTDelivered In-Full On-TimeOMSOrder Management Solution
E2EEnd-to-EndOMUOperating Model Update
EDLPEvery Day Low PricePOSPoint-of-Sale
ELSExecutive Leadership SquadSIDCSouth Island Distribution Centre
eNPSEmployee Net Promotor ScoreSSOStore Support Office
ERPFIEnterprise Resource Planning -Finance and InventorySSSSame Store Sales
FCFulfilment CentreSWASStore-Within-a-Store
GBOGroup Business OperationsT7Torpedo7
GEPGroup eCommerce PlatformTWLThe Warehouse
GTVGross Transaction ValueWALTWeighted Average Lease Tenure
GOMSGroup Order Management System WMSWarehouse Management System
LTVCustomer Lifetime ValueWSWarehouse Stationery
GLOSSARY
42

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 interim 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.
43
DISCLAIMER

---

To: NZX Limited

Auckland, Wednesday 28 September 2022

The Warehouse Group FY22 annual result announcement
Second highest Group sales ever of $3.3B as Kiwis seek out affordable products in
another challenging year

The Warehouse Group Limited (“the Group”) today announced the full year result for the year
ended 31 July 2022. Despite Auckland stores being closed for 23% of the reporting period, the Group
delivered sales of $3.3 billion, down 3.5% on FY21 but up 3.8% on FY20 and up 7.3% on FY19.
Reported NPAT was $89.3 million, down 18.3% on FY21. Online sales increased 39.8% to $503.3
million and were 15.3% of total Group sales.
In the 12-month reporting period, the Group’s Auckland stores were closed for a total of 84 days due
to COVID-19 Level 4 and Level 3 lockdowns and stores throughout the rest of New Zealand were
closed for at least 21 days as the country moved in and out of lockdowns creating a very disrupted
trading period. The second half of the year saw the country enter into the traffic light system and
the Group operated at “Red” level for a further 74 days.
Highlights
• Group sales of $3.3 billion, down 3.5% on prior year, up 3.8% on FY20
• FY22 gross profit margin decreased compared to FY21, but improved during the year with
FY22 H2 gross profit margin of 36.1% up 140 basis points from FY22 H1 gross profit margin
of 34.7%
• Reported Net Profit After Tax of $89.3 million – down 18.3% on prior year
• Adjusted Net Profit After Tax of $85.5 million – down 48.9% on prior year
• Both reported and adjusted NPAT reflect $11.4 million (after tax) reduction due to
accounting treatment of cloud computing software arrangements
• Group online sales up 39.8% and making up 15.3% of total Group sales, and within this,
click and collect up 54.9% and making up 49.0% of total Group online sales
1

• Strong growth in MarketClub, our new Group membership programme, acquiring nearly
600,000 active members in first 10 months
• MarketMedia announced as new unified retail media platform, with retail media revenue
growing +23% on prior year to $20.9M
• Final dividend of 10.0 cents per share declared, resulting in full year dividends of 20.0 cents
per share.

The Warehouse Group CEO Nick Grayston said the result was pleasing despite the first half of the
year being one of the most disrupted periods since the start of the COVID-19 pandemic.
“While 2022 has been another year disrupted by COVID-19 lockdowns, we are pleased with this solid
performance across the Group and our momentum overall as we continue to build a world class
retail ecosystem. I would like to acknowledge all of our team members, who once again adapted
quickly to the changing and challenging times so we could be there for our customers.
“The first half was the most challenging with a sales decline of 4.3% year on year. The second half
saw disruptions starting to ease, supply chains and networks becoming easier to navigate and our
customers return to stores, albeit with continued restrictions of “Orange” under the traffic light
system.
“In the current environment every dollar counts and customers are seeking out brands like ours that
continually have best in market prices, whether it be for butter, TVs, toys or blankets. The strength
of our integrated retail ecosystem of brands, products and services has served us well.
“Our customers are seeking to engage with us both digitally and physically. Our same day click and
collect service at The Warehouse and 1 hour click and collect service at Noel Leeming continue to
grow with an increase at The Warehouse of 60.5% and at Noel Leeming of 50.3%. Across all brands,
click and collect sales increased 54.9% compared to the prior year, making up nearly half of all Group
online sales
1
.
“We were also pleased with the momentum we’ve seen in our Group membership programme,
MarketClub, which has grown to nearly 600,000 members in the 10 months between its launch in
October 2021 and the end of FY22.”
Group performance
FY22 gross profit margin improved over the course of the year to 35.3% for the full year, with FY22
H2 gross profit margin of 36.1% up 140 basis points from FY22 H1 gross profit margin of 34.7%, and
only marginally down from the 36.4% realised in FY21. In the first half, gross margin was impacted by
higher cost of ocean freight and increased cost of online fulfilment – which was intensified by the
significant increase in online shopping this year. The Warehouse gross profit margin was most
affected by these factors, with most of this impact occurring in the first half.
The Group’s Adjusted Net Profit After Tax (NPAT) was $85.5 million – a decrease from $167.2 million
in FY21. This includes a reduction of $11.4 million after tax to comply with the recent introduction of
an accounting policy interpretation from IFRS in the way costs associated with cloud computing
arrangements are treated (“SaaS” adjustment), with FY21 also impacted by $8.3 million after tax.
Given the significant investment the Group is currently undertaking in core systems and customer
facing digital solutions, the effect on reported earnings is material although there is no incremental
cash impact.

1
Percentage of omnichannel brands (The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7).

On a comparable basis to the prior year, excluding the SaaS adjustment, Adjusted NPAT is $96.9
million, our second highest result since 2007. This follows an extremely strong performance last year
and demonstrates the gathering momentum of the transformation.
Cost of Doing Business (CODB), including the SaaS adjustment mentioned above, increased by $35.2
million compared to the equivalent expenditure last year. Additional costs include increased
advertising in digital media and on TheMarket.com; COVID-19 related non-labour costs in our
Distribution Centres and stores, and increased IT expenses on projects such as MDM, ERPFI and core
infrastructure services.
Key brand performance
All Group brands were impacted by the COVID-19 restrictions and resulting decreased foot traffic of
12.1% compared to the prior year. Although online sales performed exceptionally well during the
year, this did not offset the loss of in-store sales.
The Warehouse sales decreased 4.3% to $1.7 billion but finished the year with strong momentum –
down 0.7% in the second half and with sales growth 0.4% in Q4. Online sales increased 60.5% in the
year and represented 10.5% of The Warehouse sales, driven by click and collect, where sales grew
86.8% and made up 45.9% of The Warehouse online sales. Gross profit margin in The Warehouse
decreased 180 basis points to 40.3% but improved in the second half from 40.0% in H1 to 40.7% in
H2.
Warehouse Stationery sales decreased 9.1% to $249.7 million. Online sales increased 20.8%, and
represented 13.7% of Warehouse Stationery sales, with click and collect fulfilment increasing 37.8%.
Gross profit margin decreased 80 basis points to 47.5%. Over the year a further 10 stores were
integrated into The Warehouse stores taking total Warehouse Stationery SWAS stores to 35.
Noel Leeming sales decreased 2.8% to $1.1 billion, but it remains the second highest sales result in
the brand’s history after a very strong FY21. Gross profit margin held up relatively well, decreasing
by 10 basis points to 23.2%. Noel Leeming’s 1-hour click and collect has been very well received by
our customers with online sales increasing 50.3% to make up 16.3% of sales, and click and collect
fulfilment increasing 40.4% making up 57.7% of Noel Leeming online sales.
Torpedo7 opened three new stores in the year, and an increased online presence contributed to
increased sales of 8.1% to $171.5 million. Gross profit margin was impacted by increased online
sales and product mix, decreasing 190 basis points to 36.0%. Online sales increased 31.0% to make
up 35.3% of Torpedo7 sales, with click and collect increasing 41.9% to make up 46.2% of online sales.
TheMarket.com is our online marketplace and is quickly becoming one of New Zealand’s favourite
places to shop online with more than 390,000 active customers. Offering customers 4.2 million
products from more than 6,500 local and international brands, TheMarket.com continued its growth
trajectory in FY22 with average customer spend up 14% and delivered $110 million Gross
Merchandise Value.
Retail Media growth & MarketMedia

Retail media revenue grew +23% on prior year to $20.9 million, and we are pleased to announce the
launch of our unified retail media network, MarketMedia, to drive further growth.
The launch of MarketMedia will allow advertisers to reach and connect to New Zealand’s largest
integrated retail audience directly, with performance and reporting based on real-time behaviours
across our online stores, apps, and millions of weekly visits to our stores.
“MarketMedia will enhance the value creation from our retail ecosystem further and we are excited
about the future growth opportunities that this new retail media network will bring to the Group.
We will be working with Omnicom as our first retail media agency partner to accelerate our work in
this space.”
Affordable groceries
“Grocery has been a focus for us throughout FY22, and we are pleased to be able to provide Kiwi
families with lower priced alternatives for their essential items at a time of increased financial stress.
“We are encouraged by customer feedback over the last six months on our strong value-led range.
Despite food price increases, we have held our prices on key essentials like butter, milk and bread as
we committed to in March 2022 and our customers have benefited from this. Over the last five
months, we estimate we’ve saved Kiwis families $2.7million by focusing on making a good breakfast
of bread, butter, milk, Weet-bix and coffee affordable.
“Our customers rely on us to give them great value every time they shop with us. We do this in
general merchandise and apparel, and we’ll do it in grocery too as it’s what our customers want.
“Grocery, pantry, health & beauty, laundry and pet care are all growing categories for us and are
now available in all of our existing 89 The Warehouse stores. Looking ahead, we will continue to
expand our value range and offer grocery essentials at NZ’s best prices.
“We continue to be hopeful that the Government’s ongoing actions to make grocery retailing a more
level playing field, and access to equitable prices, will enable us to do more. Equal access to supply
and distribution continues to be a challenge that is not yet solved.”
Helping New Zealanders to live sustainability
“We are taking ambitious action to make sustainable living easy and affordable for everyone. We’ve
already made good progress and we’re stepping up to do more. This is a commitment we make
acknowledging we don’t have all the answers and that there is technology not yet available that we
need.
“Climate change is an urgent global challenge and something we need to act on at pace. To this end,
we’ve set the target to achieve 100% of our private label products and packaging to be sustainable
or have a circularity solution by 2035, with the aim of increasing our sustainable living and circularity
solutions for our customers, and to reach zero operational emissions (Scope 1 & 2) by 2040.
“We range over 35,600 private label products with at least one sustainable feature across the Group,
accounting for $213 million in sales over FY22. We’ve diverted 73.4% of operational waste from
landfill and have helped our customers divert a total of 653 tonnes of post-consumer waste from

landfill disposal, including soft plastics, e-waste, ink and toners, whiteware, office furniture and
heaters.”
Cash and liquidity
Net cash flow decreased $201.7 million over the year resulting in a net debt position of $41.2 million
at year end. With bank facilities of $420 million, we are within our liquidity target range of $350
million to $450 million. Inventory levels are $105 million higher than last year, partially driven by
supply chain disruptions and to ensure that we have sufficient inventory leading into our peak
trading period. We expect some cash flow benefits over the course of the FY23 financial year as we
manage inventory to lower levels.
Outlook
“Looking ahead, we are cautious as we approach Q2 and our busiest time of the year. Cost of living
conditions continue to be challenging, and we expect to see New Zealanders continue to seek out
great value products across our brands.
“Given the ongoing inconsistency of container freight arrivals into New Zealand, we have taken
action to ensure we have good levels of summer stock available across all our brands for peak
selling.
“While August is the quietest trading month of the year, we have made a positive start and traded
ahead of our expectations. Looking ahead and as in previous years, any earnings outlook for FY23
will be dependent on the critical second quarter peak trading period.”
Dividend announced
Chair Joan Withers confirmed that the Board has declared a final dividend for the FY22 year of 10.0
cents per share, in line with the Group’s policy to distribute at least 70% of adjusted net profit after
tax. Given the impact of the SaaS adjustment on net profit this year, the dividend pay-out ratio is
81.1% in FY22 (71.6% excluding the SaaS adjustment). The final dividend will be fully imputed and
paid on 2 December 2022 to shareholders on the register on 17 November 2022.
This brings the total dividends for the year to 20.0 cents per share.
ENDS
More information about The Warehouse Group’s result, financial performance by brand, strategy
and operations can be found in the 2022 Annual Report, available at
www.thewarehousegroup.co.nz.
Contact details regarding this announcement:
Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Rachel King +64 9 489 8900 or +64 21 674 565 Rachel.King@thewarehouse.co.nz
Media: Jordan Schuler, Corporate Affairs Partner
media.enquiries@thewarehouse.co.nz or +64 21 143 6930

---

2022 INTEGRATED
ANNUAL REPORT
OUR VISION
TO MAKE
SUSTAINABLE
LIVING EASY AND
AFFORDABLE

FOR EVERYONE

4
6
8
10
12
15
16
26
28
32
34
36
40
44
46
50
54
61
66
84
91
102
111
115
117
2022 at a Glance
Chair’s Report
CEO’s Report
Our Purpose, Vision and Values
Our Ecosystem
Our Stores
Our Brands
Supporting Our Communities
Sustainability
Integrated Report
Risk & Materiality Mōrea me te Tūponotanga
Our Networks Ngā Kōtuitanga
Our Customers Ngā Kiritaki
Our Relationships Te Ara Whanaungatanga
Our People Ngā Tāngata
Financial Capital Tahua Hautaonga
Protecting our Environment Manaaki Taiao
Financial Statements
Notes to the Financial Statements
Independent Auditor’s Report
Governance Report
Statutory Disclosures
Global Reporting Initiative
Disclosures
Independent Auditor's Report - GRI
Directory
CONTENTS
ContentsThe Warehouse Group Integrated Annual Report 202223

1.
Adjusted Net Profit After Tax (NPAT) is before unusual items and
is a non-GAAP measure. A reconciliation between Adjusted
and Reported NPAT can be found in Note 5 of the Financial
Statements for the year ended 31 July 2022.
2
. Scope 1 & 2 emissions increased due to higher inventory
management, increased Distribution Centre hours and use of
stores as fulfilment centres as we operated under COVID-19
safety protocols.
2022
AT A GLANCE
Increase to
of senior leaders
who are female
Gender pay equity
at Group level
46.6%
100%
G
E
N
D
E
R

E
Q
U
I
T
Y
C
U
S
T
O
M
E
R
Group in-store NPS
up 3.5pts
from FY21
Online sales
up 39.8% on prior year
making up 15.3% of total
Group sales
$
503m4.8m
54.9%
73.9pts
More than
private label products
with sustainable features,
accounting for $213m in sales
35,600
of operational waste
from landfill
73.4%
We have diverted
in Scope 1 & 2 emissions
compared to FY21, and by 5.4%
compared to our 2020 base year
2
0.3%
Increased by
Carbon neutral since
2019
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
P
E
R
F
O
R
M
A
N
C
E
$
Adjusted NPAT
1
down 48.9%
on prior year
Digital/App visits
per week
up from 3.5m
in prior year
$
85.5m
$
41.2m
Reported NPAT
1
down 18.3%
on prior year
Net debt
from $160.5m cash
held in prior year
Growth in
Click & Collect
making up 49.0% of
online sales
$89.3
m
Group sales
down 3.5%
on prior year
$
3.3b
Raised
for New Zealand
charities and
communities
MarketClub members can
nominate a charitable cause
to which The Warehouse
donates on their behalf.
$
3.7m600
k
C
O
M
M
U
N
I
T
Y
A pleasing full year result, given the continued
COVID-19 lockdowns and trading restrictions during
the period which challenged the resilience of our
people and the financial performance of the Group.
We have a new vision to make sustainable
living easy and affordable for everyone, and a
new ambition to achieve zero emissions in our
operations by 2040.
Gender equity remains a core focus for us, and we’re pleased
to continue our efforts on maintaining 100% gender pay equity
at Group level.
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.
Our customers are increasingly buying the products they want online.
We are committed to developing a full product and service integrated
retail experience across our brand websites, apps and in store.
TO BE UPDATED
The Warehouse Group Integrated Annual Report 202245

capital expenditure to invest for future growth, and
progressive and sustainable dividends.
In accordance with this policy the Board declared a
fully imputed FY22 interim dividend of 10.0 cents per
ordinary share which was paid on 26 April 2022. The
Board is pleased to announce a fully imputed final
dividend of 10.0 cents per share. The record date for
the dividend will be 17 November 2022 and will be
paid on 2 December 2022.
Outlook
We are cautious as we approach Q2 and one of
our busiest times of year. Cost of living conditions
continue to be challenging and we expect to see New
Zealanders continue to seek out great value products
across our brands. Given the ongoing inconsistency
in container freight arriving into New Zealand, we have
taken action to ensure we have good levels of summer
stock available across all our brands.
While August has been one of the quietest retail
trading months historically, we have made a positive
start to the new financial year, trading ahead of initial
forecasts. Looking ahead and as in previous years, any
earnings outlook for FY23 will be dependent on the
critical second quarter peak trading period.
To conclude, the values that Sir Stephen Tindall
established when he set up The Warehouse 40 years
ago have held us in good stead through yet another
demanding year.
I would like to thank our customers across all our
five brands – The Warehouse, Warehouse Stationery,
Noel Leeming, Torpedo7 and TheMarket.com for
continuing to choose us.
I would also pay tribute on behalf of the Board to our
CEO Nick Grayston and the outstanding executive
leadership team he has working alongside him. The
Board and executive working dynamic has moved
forward again this year and I know I speak for all my
fellow directors when I say it is a privilege to work
alongside Nick and the leadership squad in achieving
the Group’s objectives.
The purpose and strength of any business has truly
been tested over the last two years and I’m very proud
that the spirit of The Warehouse Group and our strong
and focused team have continued to deliver for New
Zealanders.
Ngā mihi nui
The Future Directors programme aims to develop
the next generation of directors and Caroline’s
appointment as a full Director is an acknowledgment
of the success of this IOD initiative, which was co-
founded by Sir Stephen Tindall. We remain committed
to the scheme and we have derived enormous benefit
from the Future Directors we have had sitting around
the table for the past seven years.
Our team
I’d like to commend all our 12,000 team members
across The Warehouse Group for another incredible
year in responding and serving our customers well
through a very demanding period.
We have worked hard to ensure The Warehouse Group
is an employer of choice for top talent and we are very
proud to continue to provide benefits to our team
members that make it a world-class place to work.
This year, we expanded our Parental Leave policy to
offer all permanent team members 26 weeks full pay,
topping up the Government’s paid parental leave
payments to 100% of a team member’s salary or wage.
These changes are in addition to our existing parental
leave benefits, which include ongoing employer
KiwiSaver contributions and accumulation of annual
leave at its full value during the parental leave period;
the ability to take one day off each week for the first
four weeks while continuing to be paid as normal; and
the ability for partners to take up to five days of paid
leave within 21 days either before or after the new
addition joins the family.
As the cost of living has increased, we have looked
for further opportunities to provide our team with
easy access to the essentials they need at more
Our adjusted net profit after tax (NPAT) for FY22 was
$85.5 million, compared to $167.2 million in FY21,
with reported NPAT of $89.3 million, compared to
$109.3 million in FY21.
The year end result includes an adjustment
to comply with the recent introduction of an
accounting change in the way costs associated
with cloud computing arrangements are treated.
Given the significant investment the Group is
currently undertaking in core systems and customer
facing digital solutions, the earnings impact for us
is material. On a comparable basis to last year’s
announced result adjusted NPAT is $96.9 million, our
second highest result since 2007, and following an
extremely strong performance last year.
Supply chain
Supply chain has continued to present challenges
in the past year – our agile structure and our
ability to make fast decisions has meant we are
well placed to manage the current global supply
chain challenges. We continue to work closely with
suppliers through our international sourcing offices to
manage production, supply and shipping. Although
the situation has been improving, we expect some
ongoing price volatility and shipping disruptions
throughout the remainder of 2022 and into 2023.
Faced with the ongoing global uncertainty in supply
chains we did conclude the year with higher levels of
stock of $562.3 million, compared to $457.2 million in
the prior year, so we are well positioned ahead of the
peak season and major trading events which occur
from October to December. Recovering previous
progress on working capital gains and continuing
to optimise inventory levels will be a focus for
management during FY23.
Investing in capability for growth
During FY22 the Group has made significant progress
removing legacy systems and building world class
core retail systems – and we’re seeing the benefits.
In our distribution centres, our new Warehouse
Management System is operational and beginning
to deliver on expected efficiency gains.
A cloud-based Group Order Management Solution
(GOMS) is in development and will deliver a
group solution for all our brands and improve our
customer experience for online orders, delivery and
Click & Collect.
Our new Enterprise Resource Planning Finance
Inventory (ERPFI) system is the most significant of
our core system projects – we were pleased to deliver
the finance module of this implementation during
the year, with the inventory module on track for
delivery in April 2023. Delivery of ERPFI will result in
simplifying financial processes including more timely
reporting, project accounting, real-time inventory
management and improved stock availability.
We will continue to invest in core systems and
customer facing digital offerings, including real-time
inventory management for our Distribution and
Online Fulfilment Centres – improving the customer
online ordering, delivery and collection experience
– and further development on our brand websites
and apps – enabling a stronger integrated retail
shopping experience.
Governance
I’d like to thank and acknowledge the Board for
their contribution this year. Their support and
energy have been exemplary as we help guide The
Warehouse Group’s ongoing retail transformation
with our executive team in dealing with the wider
socio-economic and geopolitical challenges we’re
now facing globally.
This year we have had two notable movements. Firstly,
Will Easton resigned from the Board in May to focus
on other work commitments. Will’s contribution to the
Group through a period of internal transformation and
technological development has been hugely valuable
over his 3.5 years since joining in 2018.
Following Will’s departure, we wanted to ensure that
we have the right digital strategy and partnership
experience around our table. Caroline Rainsford is
the Country Director for Google NZ and has been
our Future Director since August 2021. The Board
made the unanimous decision to appoint her as a
full Director in August 2022, which is outside the
usual protocols of the Future Director scheme and
I thank the Institute of Directors (IOD) for their
support. Caroline has a very special mix of skills and
experience and as a Board, we’ve found her passion
for technology as well as her strategic insights
highly valuable as The Warehouse Group continues
its digital transformation at pace.
Welcome to our fourth Integrated Report.
I’m pleased to share that our trajectory
and momentum in 2022 remains strong
despite the unforeseen events we have
encountered.
The financial year in review started once again with an
enormous challenge. Two weeks into the financial year,
we were again back into a COVID-19 lockdown for 84
days in Auckland and at least 21 days throughout the
rest of New Zealand, bringing yet another call on our
team to adapt very quickly.
Resilience, focus and agility have been hallmark
themes for the Group over the last two years and I’d
like to recognise and commend all our team members
for their commitment to our customers and one
another throughout the pandemic.
Despite the disruption, our teams have continued to
innovate, and we have never been more confident in
our strategy – to provide a personalised, integrated
and frictionless shopping experience for our customers.
In this report, we are excited to share our new
company vision externally for the first time – “to
make sustainable living easy and affordable
for everyone”. Within our business, this means
developing a pathway to zero operational emissions
by 2040 and zero waste to landfill by 2025. For our
customers, this means providing more choices and
opportunities for them to live more sustainable
lives by increasing our sustainable product options
and providing more circularity solutions. We have
some ambitious goals in this space which you
can read about more on page 28. I am extremely
proud of what we have achieved so far, and as we
move towards our 40-year anniversary later in the
calendar year, excited about what is to come.
Resilient performance
Following a record FY21 financial year, and after a
very challenging FY22 first half, the second half of
the year was certainly an improvement. The Group
finished the year with total sales of $3.3 billion, which
was down 3.5% on the prior year. However, we saw
an improvement with the previous corresponding
period in the second half of the year as the trading
environment normalised, supply chains improved, and
customers slowly returned to stores.
affordable prices. We increased our team member
discount on grocery items and pantry essentials
at The Warehouse stores and continued to expand
our partnerships with other businesses to provide
our team with discounted products and services,
including health insurance, gym memberships,
optometrist care and mobile broadband.
Gender equity remains a core focus for us, and I’m
pleased to report that we have continued to maintain
100% gender pay equity at Group level, with female
leaders holding 46.6% of senior leadership roles and
at Board level we have a 50/50 gender split.
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 our new vision cements this
ambition. As I mentioned earlier, across the Group
we are committed “to make sustainable living easy
and affordable for everyone”. Our efforts continue
in ethical sourcing, reducing packaging and
plastics and prioritising sustainable products
and materials. Our brands now offer over
35,600 private label products with sustainable
attributes – up from 11,500 a year ago.
Circular solutions for our customers will be a key
part of this commitment, whereby we design and
promote products that can be reused, repaired and
remanufactured. The Torpedo7 woollen composite
kayak, The Warehouse toy recycling programme as part
of our Mega Toy Month in July, as well as our ongoing
e-waste recycling programme in Noel Leeming and
Warehouse Stationery, are examples that not only
provide a customer solution but also deliver a better
sustainable outcome. New Zealand can expect to see
more activity like this from us as we adapt our business
to become more and more sustainable but maintain the
great value and affordability that we are renowned for.
As prefaced in my introduction we have updated our
targets against a 2040 deadline with the aim of zero
emissions in our operations by 2040 and requiring
no carbon offsets. Our targets are ambitious, and
for some aspects we are reliant on technological
solutions that currently do not exist, like a
hydrogen fuelled shipping fleet. Irrespective, we are
determined to continue to change the shape of our
business to achieve our goals and we look forward to
sharing our progress.
Dividend
The Group dividend 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
Joan Withers – Chair
JOAN WITHERS
CHAIR’S
REPORT
The Warehouse Group Integrated Annual Report 202267Chair’s Report

$1.2 billion for the full year. While this was down 6.2%
on FY21, it was a significant improvement from the first
half which saw gross profit decline 8.5% compared
to the FY21 first half due to increased shipping costs,
product mix and clearance activity required to clear
unsold stock following COVID-19 lockdowns.
Agile has unleashed our potential
As the first major retailer to embrace whole company
agile ways of working, we are executing at pace
and are starting to experience the return on our
investment with transformational productivity. We
have adapted to a whole new way of working, and the
change in our operations has started to unlock our
true potential. We continue to innovate in order to
unleash the power of our team to work with “freedom
within framework”, which is critical both to customer
centricity and the speed required to prosper in the
Second Digital Age. To our team, thank you for owning
it, thinking about our customers, and doing good -
you are making a difference.
Our team’s focus and capability have shifted from
merely buying and selling inventory to solving
problems for our customers and consumer-driven
commerce. Our team engagement and satisfaction at
work has never been higher, with our employee NPS
scores increasing across the Group’s agile brands
(
The Warehouse, Warehouse Stationery and Noel
Leeming) up 1.4 points to 73.9.
Our commitment to value and
community support
As New Zealanders’ cost of living continues to
increase in 2022, we are seeing a growing number
of new customers seeking out our brands for
affordability and value.
Our customers' hunt for value became particularly
apparent with 80,000 new sign-ups to MarketClub
during the week our $4 Tararua butter was
announced. Now more than ever, we are committed
to offering Kiwi families the best value on what
we view as key essentials, and we’ve worked hard
to protect value across quality clothing and key
food items.
Grocery has been an important strategic focus this
financial year and we’ve seen market share growth
as well as a shift to being our customers’ first choice
for their pantry essentials. We’ve led the market with
our breakfast basket over the last six months and our
customers are asking for more.
Looking ahead, you can expect to see us expand
our grocery aisles in our existing stores. We will
expand our value range and are working hard with
New Zealand and international suppliers to bring
our customers the things they need most at reliable
everyday low prices.
The value and support we provide to the communities
we operate in has also been important. We’ve
had many notable activities like our 'Be the Joy'
campaign at Christmas to support families whose
children may not otherwise receive presents, and our
Healthy Homes and Heater Swap in July where our
programme exchanged customers’ gas heaters with
energy efficient radiator heaters to help keep Kiwi
homes warm and dry.
Overall, we’ve raised $3.7 million to New Zealand
charities this year - $79 million since 1982 – and
helping 'do good' remains a key value for us and
is an intrinsic part of how we operate.
The power of an ecosystem
We are witnessing consumer trends shift rapidly in
a post-COVID-19 restrictions world.
We have built our Group to be resilient to change as
we purchase inventory guided by data and insights,
keeping us ahead of demand as we continue to grow
our integrated retail ecosystem of brands, products
and services. While 2020 and 2021 were about
customers purchasing items to enable working and
learning from home as well as active wear, 2022 has
seen a change in customer need with travel demand
returning at the expense of goods and services, with
items like suitcases back in demand as we continue
to move past COVID-19 related restrictions.
We retain our focus on building a world-class
ecosystem powered by first-party data, learning more
about consumer behaviour and actioning it across our
different brands and platforms, building infrastructure
I am very pleased to report on a strong
financial year, despite the challenges
that COVID-19 continues to bring. Our
robust foundations, the strength of The
Warehouse Group brands, our dedicated
team members and our strong customer
centricity have ensured the continued
momentum throughout the challenges
of FY22.
The first half of the year was one of the most
disrupted periods since the start of the COVID-19
pandemic, resulting in our stores moving in and out
of trading restrictions in different parts of the country
at different times. This contributed to a particularly
challenging operating environment.
Our customers pivoted to our online and Click &
Collect channels across all our brands and our
team stepped up to ensure we were supporting
New Zealand families to get the things they
needed and wanted.
Our 12,000 team members have rallied together with
unrivalled customer focus and continued to innovate
and deliver. Their adaptability and resilience within
our agile framework enabled The Warehouse Group
to respond to the ever-increasing pace of change.
Financial performance
While FY21 was a record year in many respects, it is
recognised now that the strong bounce back following
the first New Zealand lockdown was an anomaly and
that this was going to be a tough act to follow given
the challenges and headwinds experienced in FY22.
Despite this, we are extremely pleased with the result.
While the first half was the most challenging with
sales decline of 4.3% year on year, the second half saw
disruptions ease, supply chains and networks become
easier to navigate and our customers return to
stores following long periods of store closures due to
lockdowns. The second half saw a stem in the decline
of sales resulting in full year sales of $3.3 billion, down
3.5% compared to FY21.
Our focus on gross margin, improved shipping and
freight logistics and improved mix of product sales
also saw gross profit improve from the first half, to
NICK GRAYSTON
the lifetime value of a customer and provide
additional value and benefits on a differential basis.
Beyond retail
We are excited to be launching our unified retail media
network, MarketMedia. Our retail media platforms will
enable us better to connect our customers and
suppliers across one of the largest online and in-store
audiences in New Zealand.
For our customers, this means we can offer them
shopping experiences with more deals and relevant
recommendations that are right for them.
For our suppliers, this means we can give them
powerful ways to grow their businesses by partnering
with New Zealand’s largest integrated retail group.
MarketMedia will allow advertisers to reach and
connect with millions of consumers based on real-time
purchasing behaviour and intent signals, providing
a holistic view of customer behaviour, measurable
results, and closed-loop performance insights linked
all the way through to transactions.
Internationally the likes of Amazon, Walmart,
Woolworths, and Best Buy are successfully
harnessing the power of their first-party data through
retail media networks. We are optimistic about the
future growth opportunities that our new retail media
network will bring to the Group.
Take a stand or take a seat
The Warehouse Group has always been an
organisation that challenges the status quo to deliver
the things that Kiwis need and be here for good. Our
planet is in crisis, and tackling climate change takes
that serves our customers seamlessly across the
digital and physical worlds.
The Warehouse and Noel Leeming apps are already
among the most downloaded and highly rated apps
in New Zealand, and we anticipate a convergence
of our brands and their apps and online channels
into a single point of reference for the ease and
convenience of our customers, leveraging the power
of our Group and beyond.
We were thrilled to launch MarketClub – our Group
wide membership programme – in October 2021,
initially into The Warehouse and on TheMarket.com.
In less than a year, MarketClub has rapidly grown to
nearly 600,000 active members, who enjoy incredible
offers and value. MarketClub will continue its
expansion across the Group in FY23 as we launch
new features and brands.
We have never been more confident in our strategy
and how we are tracking against it. We are investing
in systems and infrastructure to deliver growth, we
are building a Group-wide membership programme
to reward our customers every step of the way; we are
investing in retail media further to unlock the value of
our ever-deeper customer relationships; and we are
excited about growing our grocery offering. We are
doing all this in a measured and sustainable way – to
reduce emissions in our own organisation and beyond
and to make sustainable living easy and affordable
for everyone.
As we move ahead with our strategy to provide
personalised, integrated, rewarding and frictionless
shopping experiences, we will be able to recognise
all of us. Our team and I are passionate about being a
proactive part of the solution, and we are challenging
how we can move faster and do better.
This will be a significant multi-decade transformation
to make sustainable living easy and affordable for
everyone, and to achieve zero emissions in our
operations by 2040. It’s a big, bold ambition with
many unknowns, but if not us, then who? And if not
now, then when?
Our foundations are strong and we’ve been
investing in and building our portfolio of sustainable
products, reducing waste for ourselves and our
customers through robust recycling programmes
and packaging reduction, and implementing various
initiatives across the Group to reduce our own
emissions to zero by 2040. In addition, we recognise
that the lion’s share of our emissions are created
with our suppliers in the process of manufacture
of the goods we sell and are working with them to
report, reduce and mitigate Scope 3.
All organisations will need to take a stand or take a
seat in their approach to sustainability. We’ll be taking
a stand.
Ngā mihi nui
NICK GRAYSTON
CEO’S
REPORT
Nick Grayston – CEO
The Warehouse Group Integrated Annual Report 20228CEO’s Report9

OUR PURPOSE, VISION, VALUES,
AND CUSTOMER EXPERIENCES ARE ALIGNED
OUR PURPOSE
OUR STRATEGIC CUSTOMER EXPERIENCE
OUR VISION

Helping Kiwis live better every day
Ia tangata, ia rā
Every day, we’re living our purpose by transforming our business to exceed our customers’
expectations and to have a positive impact on our communities. Our vision guides our aspiration,
while our values guide our behaviours and rituals.
We’re focusing on the strategic customer experiences to achieve our objectives and to deliver on our
long-term strategy and growth.
To make sustainable living easy and affordable for everyone
Kia ngāwari, kia utu māmā hoki te noho tiaki taiao a te katoa
OUR VALUES
Mahi i nga mahi pai
We are one team, standing up
for our people, our planet
and our communities.
DO GOOD
Whakaarohia te kaiutu
We put the customer
first in everything we do.
THINK CUSTOMER

Kia haepapa
We walk the talk and
make things happen.
OWN IT
Helping customers
to find what they’re
looking for, at prices
that are great,
every time
Range & Value
12345
Helping customers
to enjoy fast, easy,
and reliable ways
to get what
they need
Availability & Fulfilment
Helping customers
to have access
to affordable
solutions that help
them live sustainably
Sustainable & Affordable
Helping customers
to feel recognised
and rewarded
Loyalty & Payments
Helping customers
get easy and
high-quality
customer service
every time
Customer Service
The Warehouse Group Integrated Annual Report 20221011Our Purpose, Vision and Values

We’re continuing to build and deliver
a modern, integrated retail offering
- powered by a customer-centric
ecosystem that enables easy and
frictionless shopping experiences to
create greater customer value over time.
Our unique combination of local assets, global
partnerships and strong financial position means
we can scale our business further 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 launched our unified
membership programme, MarketClub, starting with
a rollout across TheMarket.com and The Warehouse,
acquiring nearly 600,000 active members by the end
of FY22. We are busy expanding our membership base
and capability within this programme, and have plans
to roll this out to the entire Group.
With our strategic investment in Zoom Health, the
operator of Zoom Pharmacy, we believe 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 integrated retail capabilities across our
stores, services, supply chain, and our mobile apps
and online sites. 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.
OUR
ECOSYSTEM
P
L
A
T
F
O
R
M
S
P
E
O
P
L
E

D
A
T
A
OUR CUSTOMER
SHOPPING
We’re focused on making
our shopping experiences
easy and seamless – in
stores and online
ENTERTAINMENT
Potentially extending
our membership into
entertainment services
and offerings

RETAIL MEDIA
Will turn our store
and digital traffic into
incremental revenue

SERVICES
Our services help
customers and
businesses in their
daily lives

MEMBERSHIP
Bring it all together,
in stores and online
HEALTH
We're focused on
offering convenient and
affordable access to
healthcare to all Kiwis
FULFILMENT
We get our goods and
services to our customers,
when and where they want
PAYMENTS
With more ways to
make their budgets
work for them

The Warehouse Group Integrated Annual Report 20221213Our Ecosystem

OUR STORES
11
6
4
5
MATAMATA
MORRINSVILLE
TE RAPA
CHARTWELL
HAMILTON
HILLCREST
THE BASE
BELL BLOCK
NP CENTRAL
TAURANGA
MT MAUNGANUI
FRASER COVE
THE CROSSING
PAPAMOA
DUNEDIN
CAMBRIDGE
TE AWAMUTU
TOKOROA
TE KUITI
ROTORUA
LEVIN
PARAPARAUMU
RANGIORA
OAMARU
ALEXANDRA
ASHBURTON
BLENHEIM
KAITAIĀ
KAIKOHE
DARGAVILLE
WAIPAPA
KERIKERI
WHANGĀREI
WHAKATĀNE
SNELLS BEACH
WARKWORTH
GISBORNE
TAUPŌ
HASTINGS
MASTERTON
DANNEVIRKE
UPPER HUTT
INVERCARGILL
GORE
BALCLUTHA
TIMARU
QUEENSTOWN
WANAKA
REMARKABLES
NAPIER
HAWERA
PALMERSTON NORTH
WHANGANUI
FEILDING
NELSON
RICHMOND
GREYMOUTH
MOTUEKA
WHITIANGA
THAMES
MORRINSVILLE
CHRISTCHURCH
18
WELLINGTON
22
AUCKLAND
68
11
MAP KEY
The Warehouse Store
Warehouse Stationery Store
SWAS Store
Torpedo7 Store
Noel Leeming Store
APPS
TheMarket.com
Noel Leeming
The Warehouse
ONLINE STORES
TheMarket.com
Warehouse Stationery
Noel Leeming
The Warehouse
PHYSICAL STORES
89
68
68
24
249 STORES
The Warehouse Stores
Warehouse Stationery Stores
Including 35 SWAS (store within a store)
Noel Leeming Stores
Torpedo7 Stores
The Warehouse Group Integrated Annual Report 20221415The Warehouse Group Integrated Annual Report 202214Our Stores

plastics recycling programme has been expanded
to 38 stores, and in the last year 63.5 tonnes of soft
plastics have been collected and recycled,
the equivalent of 10.6 million pieces of plastic.
This year, The Warehouse teamed up with The
Salvation Army, Healthy Homes providers and
Habitat for Humanity to launch a first of its kind
‘Healthy Heater Swap’. Throughout winter we
called on Kiwis to trade in their un-flued LPG gas
heaters for a healthier, electric option for free, at 30
The Warehouse stores. The returned gas heaters
were then recycled through our charity partner
All Heart New Zealand. More than 1,400 heaters
were swapped out for a more energy-efficient
and healthier alternative, and 2,000 heaters were
donated to our community partners to reach those
communities most in need, helping Kiwi families to
have a warmer and healthier home.
Supporting the community continues to be a key
focus for The Warehouse, and this year we’ve raised
$1.4 million through the sale of our red bags at
checkouts to support groups and initiatives in our
communities, as well as our national charity partners
- The Salvation Army, Variety - the Children’s
Charity, The Period Place, Women’s Refuge,
Sustainable Coastlines, Hillary Outdoors, Parenting
Place, Life Education Trust, Youthline and Whānau
Āwhina Plunket.
2G9A0448.jpg
2G9A0458.jpg
2G9A0453.jpg
2G9A0461.jpg
The Warehouse is New Zealand’s largest
general merchandise retailer celebrating
40 years as a presence in communities
across the country.
Over the last year we’ve proved the benefit of having
a highly engaged and passionate team. Our team’s
resilience and ability to adapt to changing trading
conditions saw 56 of our The Warehouse stores open
as fulfilment centres overnight when the country went
into lockdown and stores were not able to open.
In FY22, The Warehouse sales decreased 4.3% to $1.7
billion, with online sales increasing 60.5% to make up
10.5% of sales and Click & Collect fulfilment making
up 45.9% of The Warehouse online sales. Operating
profit was $75.7 million, down 57.0% due to increased
costs including advertising and promotion, and the
cloud computing accounting adjustment impacting
The Warehouse operating profit by $12.0 million
(before tax).
Our focus remains to provide the best value for our
customers, and we continue to take steps to offer
the best prices we can. Value isn’t just about low
prices – by providing quality products across all of
our categories, our customers can feel confident that
the range of options we provide will offer better value
for their money.
A key highlight in FY22 is the expansion of our
grocery offering and we have been able to offer
some of the lowest prices available in New Zealand
on key grocery and household items. We’ve had
great feedback from customers who hadn't visited
our pantry aisles before and are discovering that in
addition to butter, milk, bread and flour, we also range
things like breakfast cereals, pasta, rice, canned
items, nuts and snacks – almost everything families
need to get them through the week.
Our Project Redline has seen ticketing and store
signage updated and a new store look and feel
starting to roll out across the network. We’ve also
begun rolling out a new Green Gardening experience
across 72 stores, improving and updating our offering
for this category.
We’re committed to making it easier for our
customers to make affordable and sustainable
choices and this year our customers have purchased
over $213 million worth of private label products
with at least one sustainable attribute. We continue
to make packaging improvements to a number of
our products, including removing unnecessary
packaging and plastic, and replacing it with more
sustainable options, such as our duvet sets which
come packaged in a reusable casing made from
the same material. Our 100% recycled polyester
puffer jacket and vest range is made with recycled
polyester equivalent to around 20 plastic bottles.
We continue to offer a range of circularity options
available for our customers in store. The soft
WHERE EVERYONE GETS A BARGAIN
OUR BRANDS | THE WAREHOUSE
17The Warehouse Group Integrated Annual Report 202216Our Brands | The Warehouse

label products feature kupu Māori to help encourage
Kiwis to feel more confident using the language
in their everyday lives. We’re proud of our range of
products made from sustainably sourced and recycled
materials, including our range of exercise books made
from 100% recycled paper, and our 'I used to be a
bottle' range of stationery options.
Following a successful pilot in some of our Noel
Leeming stores, Warehouse Stationery, in partnership
with TechCollect NZ, is also now offering free e-waste
collection at six stores nationwide, with the aim to
collect end-of-life electronics for recycling to reduce
the impact to landfill.
This year marked the 13th year of our annual back-
to-school appeal with The Salvation Army to support
families struggling with back-to-school costs.
Customers were invited to add a donation at the
checkout of our Warehouse Stationery stores, which
we matched dollar for dollar to provide $44,000 of
essential school supplies to families in need.
Warehouse Stationery caters to all
New Zealanders with a range of office
and school supplies, educational
resources, furniture, and craft items for
creative projects, as well as personalised
printing and copy services.
Warehouse Stationery is also a leading supplier
for small businesses in New Zealand, and has this
year been included as a panel member in the All
of Government Procurement for Office Supplies.
In FY22, operating profit was $23.1 million, with sales
of $249.7 million of which 13.7% were made online
through at-home delivery and Click & Collect. Click &
Collect grew to 25.6% of online sales, and to meet this
demand we increased our Click & Collect availability
across the store network.
Throughout the year the roll-out of our store-within-
a-store (SWAS) format continued, which has seen
Warehouse Stationery stores incorporated within
The Warehouse stores. Ten stores were converted
to this format in FY22, bringing the total number
of SWAS concepts to 35. Our customers enjoy the
greater convenience of being able to access both
brands and a wider product range under one roof.
Our print and copy centres continue to experience
increased demand. Lamination services were
popular for COVID-19 vaccination certificates, and
as borders reopened our passport photo service was
a convenient option for Kiwis. Specialist craft and
education resources were also standout categories,
benefiting from New Zealanders educating and
entertaining themselves at home. Our Services
solution continued to grow, and has increased 100%
on FY21, with customers taking advantage of our
furniture assembly services after returning to the
office following periods of lockdown.
We continued to expand our private label range which
includes the use of kupu Māori across our calculators,
school adhesives and books, book coverings and
labels, highlighters, pens and pencils, as well as our
coloured pencils, felts and crayons. We’re working
on having all of our Warehouse Stationery private
Our Brands | Warehouse Stationery
DO YOUR BEST WORK
OUR BRANDS | WAREHOUSE STATIONERY
The Warehouse Group Integrated Annual Report 20221819

THE AUTHORITY ON APPLIANCES,
TECHNOLOGY AND SERVICES
OUR BRANDS | NOEL LEEMING
Noel Leeming is New Zealand’s number
one consumer electronics retailer, helping
Kiwis enrich their lives through technology.
We pride ourselves on offering Kiwis global
and home brands, together with innovative,
world-class service.
Highlights for the year include an operating profit
of $53.9 million, sales of $1,096.7 million and a lift
in employee and customer satisfaction ratings.
These successes reflect a dedication to sticking to
delivering exceptional customer service through our
high-performing, passionate experts and end-to-end
services solutions.
Our one-hour Click & Collect service has been
expanded and is now available at every store across
the country and is a significant point of difference for
our customers, with dedicated Click & Collect bays at
most stores making pick-up quick and easy.
Our Noel Leeming services offering continues to
grow with key customer experience capabilities
being unlocked including the ability to book our Tech
Solutions services online, 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.
Our Noel Leeming Tech Solutions team is a key point
of difference for our customers. Tech Solutions has
a national footprint and and our specialist team is
dedicated to providing tech expertise in store, at your
home, your business or over the phone. Our team
of Tech Solutions Specialists can deliver personal
assistance on our full product range.
This year we launched our SmartHome services
solution, where our team of experts offer in-home
visits to provide our customers a tailored smart home
solution. This includes recommending products, and
installation on items such as smart door-locking
and security systems, lighting, Wi-Fi enabled heat
pumps, and products to control the functionality
of a customer's home.
In partnership with TechCollect NZ, Noel Leeming
offers free e-waste collection and recycling at 16
stores nationwide with the aim to divert significant
amounts of e-waste from landfills. Since this
programme was introduced last year, 83 tonnes
of e-waste has been collected.
Innovating for our customers is a key reason why
Noel Leeming is New Zealand’s number one consumer
electronics retailer.
The Noel Leeming sales app provides us with a point
of 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.
The Warehouse Group Business
The Warehouse Group Business (TWGB) continues
to work closely with Kiwi businesses to source and
set up the products they need. Our dedicated team
across New Zealand can access quality retail and
commercial grade products including appliances,
technology, stationery, work clothing, furniture,
homewares, consumables, outdoor supplies and
more. We also provide an end to end service and
specialist support to help with large-scale delivery,
installation, rubbish removal, e-waste circularity
and recycling.
Highlights for the year include $404 million Group
commercial sales, re-inclusion on the panel for
the All of Government Office Supplies contract,
alongside the appointment to the panel for the
All of Government IT contract which gives TWGB
endorsement to sell to approximately 2,700
government agencies, including schools.
TWGB partnered with the Ministry of Education
to support the Lunches in Schools programme
including the supply of whiteware and appliances
for over 200 participating schools, as well as supply
of over 3,000 bring your own device (BYOD) learning
devices to students needing to learn from home
during lockdowns.
This year, TWGB partnered with the Auckland City
Mission for the building fit-out of HomeGround/Te
Tāpui Atawhai, a new housing and social services
facility for Auckland’s homeless and most vulnerable.
This included supplying products from across the
wider group such as whiteware and appliances as
well as all necessary homewares and textiles from
The Warehouse, for 80 apartments, all with full-service
delivery, installation and packaging waste disposal.
21Our Brands | Noel Leeming The Warehouse Group Integrated Annual Report 202220

Edge and Torpedo7 also offer a circular take-back
system, where at the end of the Kakapo kayak’s life
cycle, it can be returned to the store and recycled
into a new wool composite product.
Torpedo7 Club continues to drive engagement for
our customers with exclusive club offers and this
year we’ve introduced Club days, helping drive
acquisition and pushing the Torpedo7 Club member
base to one million members.
Torpedo7 proudly supports Cycling New Zealand as
the naming sponsor of the UCI Mountain Bike World
Championship team. With Torpedo7's passion for the
outdoors and our local environment, we also provide
support through our partnership with Hillary Outdoors
Education Trust, committing $100,000 per year for the
next three years.
Our team members are 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.
Torpedo7 is the ultimate all-rounder store
for outdoor adventures in New Zealand.
Regardless of your passion or level
of intensity, Torpedo7 is sure to have
something to suit.
From a wide range of bikes for roads and trails, from
boards and skis to rip up the mountains in winter to
SUPs and water gear to make a splash in summer;
clothing selections for men, women and children,
tents to fit a family and camping equipment for
the solo tramper or casual glamper – Torpedo7 has
everything you need to get outdoors.
Torpedo7 continues to make good progress year
on year, with increased store footprint driving sales
growth of 8.0% from $158.7 million to $171.5 million in
FY22. Torpedo7 online sales grew 31.0% making up
35.0% of Torpedo7 sales.
Our network of stores continues to expand across
the country, with new stores opening in Whangārei,
Petone and Invercargill bringing our total store count
to 24. These large format stores take inspiration from
various outdoor locations across the region. We’re
continuing the large format store roll-out, with new
sites having been identified and new stores planned
to open next year.
We continued to streamline our online fulfilment
capabilities after moving to our dedicated fulfilment
centre. We have increased the mix of our private label
to around 35% of Torpedo7 apparel.
Proudly on a sustainability journey, we now have 50%
of our Torpedo7 branded apparel manufactured with
recycled fibres, and we’re looking into opportunities
for our range of hard goods.
Taking a new and innovative direction in the quest for
sustainable water-sports equipment, Torpedo7 and
New Zealand engineering company Shear Edge have
collaborated to produce a world first – a kayak made
with wool. The Torpedo7 Kakapo Woollen Single Kayak
SE, named after the Kākāpō bird, which is celebrated
for its uniqueness, has been designed with natural
fibre composite, comprising of 35% strong wool fibres
embedded within high-density polyethylene. The
natural fibres used in the kayak replace 2 kilograms
of plastic – the equivalent of 400 plastic bags. Shear
SEE YOU OUT THERE
OUR BRANDS | TORPEDO7
The Warehouse Group Integrated Annual Report 20222223Our Brands | Torpedo7

With more than 4.2 million products from
more than 6,500 of the world’s most
desirable local and international brands,
TheMarket.com is quickly becoming one
of New Zealand’s favourite places to
shop online.
TheMarket.com continued on its growth trajectory in
FY22 with customer spend up 14% compared to FY21
and delivered $110 million Gross Merchandise Value.
TheMarket.com now has more than 390,000
active customers who engaged in more than 39
million online sessions across the year, with 20%
of New Zealand online shoppers purchasing from
TheMarket.com this year. Customer shopping
frequency continues to increase, illustrating the
benefit of the extensive range of brands and
products available.
Over the last 12 months, TheMarket.com has continued
to grow the range by 76% while transforming the
platform to meet a singular customer proposition
– to deliver more value, convenience and enabling
discovery for customers.
A key moment in FY22 was the folding of the
1-day.co.nz business into TheMarket.com, providing
a unified customer experience. Including 1-day.co.nz
into the platform has expanded market share to cater
to value-driven shoppers. This remains a key move in
a consolidating market and with affordability being
top of mind for customers.
At the end of FY22, phase one of MarketIQ was
launched which increases search efficiencies for
customers through an optimised onsite search
engine that delivers more relevant and personalised
shopping recommendations.
MarketClub membership on TheMarket.com offers
customers exclusive deals and is free to join.
TheMarket.com also offers the option of MarketClub+
which is a subscription service offering free shipping
on eligible items from TheMarket.com stores and
other benefits.
Throughout the year an additional 20 MarketPoint
locations, where our customers can collect their
orders for convenience, were added to the network.
TheMarket.com is well positioned for future growth
and is a core component of the Group's ecosystem.
GET IT ALL DONE
OUR BRANDS | THEMARKET.COM
We launched MarketClub in both
The Warehouse and TheMarket.com
in October 2021, giving our customers
a new kind of membership programme.
MarketClub at The Warehouse
MarketClub membership for The Warehouse
customers is free to join and customers are able to
use MarketClub within The Warehouse app, in the
online store and by scanning a QR code at checkout
in The Warehouse stores.
MarketClub at The Warehouse had almost 600,000
active members at year end. The Warehouse
customers have saved more than $7 million to date,
through accessing MarketClub member discounts
such as the $4 500 gram Tararua Salted Butter,
25% off Market Kitchen groceries and the special
MarketClub member offer of 50% off confectionery
at Easter.
Supporting New Zealand communities has always
been at the heart of our business and something
our customers really value. Since The Warehouse
began, more than $79 million has been raised for Kiwi
charities and community groups and this is core to our
MarketClub programme.
Every time a customer shops with The Warehouse
through MarketClub, we automatically donate a
portion of the sale to their chosen charity. Customers
can choose from a range of causes to support from
our charity partners including Sustainable Coastlines,
Life Education Trust, Variety – the Children’s
Charity and Whānau Āwhina Plunket, as well as our
seasonal causes such as the annual Christmas giving
campaign, Be the Joy.
Through MarketClub at The Warehouse we have
donated more than $517,000 to Kiwi charities since
we launched in October last year.
MARKETCLUB
MarketClub and MarketClub+ at
TheMarket.com
MarketClub membership on TheMarket.com also
offers customers exclusive deals and is free to join.
Alongside this, TheMarket.com also offers members
the option of MarketClub+ which is a subscription
service offering free shipping on eligible items from
TheMarket.com stores, VIP access to exclusive
offers and promotions and priority customer service
and eligibility for benefits and deals through
exclusive partners. TheMarket.com customers have
saved $449,000 through exclusive member only
MarketClub deals in FY22.
MarketClub is an exciting step in our Group
ecosystem, designed to make it easy for our
customers to shop with us in ways that suit and
are meaningful to them.
The Warehouse Group Integrated Annual Report 20222425Our Brands | MarketClub

also continue to provide free period products for our
12,000 team members across our stores, support
offices and distribution centres.
Tonga Tsunami Appeal, supporting
Red Cross
Earlier this year our Pacific neighbours in Tonga
faced a devastating volcanic eruption and tsunami.
As a member of the Red Cross Disaster Response
Alliance we began raising emergency funds in The
Warehouse and Torpedo7 to support The Pacific
Tsunami Appeal. Together with our customers we
were able to provide $157,160 to support efforts
on the ground, including administering first aid
and distributing relief supplies in Tonga and the
surrounding islands of Mango and Fonoifua.
Together with our customers and charity
partners we’re helping to make good
things happen for communities across
New Zealand.
Guided by our purpose to help Kiwis live better
every day, we’re proud to have supported Kiwi
communities since we first opened our doors in 1982.
Our programme focuses on the areas where we can
make a tangible difference for our communities, such
as tackling family violence, ensuring young people
have access to period products, helping families live
in warm dry homes and ensuring children in need
have essential school supplies to help them succeed
in the classroom.
This year, together with our customers and suppliers we
raised more than $3.7 million for New Zealand charities
and community groups, bringing the total raised to date
to more than $79 million across the Group.
At a national level our key charity partners include
Sustainable Coastlines, Youthline, Women’s Refuge,
Variety – the Children’s Charity, The Salvation Army,
Parenting Place, Whānau Āwhina Plunket, The Period
Place, Hillary Outdoors and Life Education Trust. Our
stores also play an important role in our community
giveback programme, supporting a range of initiatives
in their local communities through the proceeds from
our $1 reusable bags.
MarketClub
In October 2021 we launched MarketClub, our new
membership programme which enables Kiwis to
support causes important to them every time they
shop with us. For every customer purchase made
through MarketClub, The Warehouse Group makes
a donation to their chosen charity organisation.
Alongside our MarketClub members, we were able
to donate more than $517,000 to Kiwi communities
this year to support a range of initiatives, such as
removing 50,025 litres of litter from Kiwi coastlines
and planting 2,859 native trees alongside our
waterways. MarketClub is an exciting evolution in
our community giving programme and another
way we’re proud to be able to support the causes
important to Kiwis.
Toys for Good
During our Mega Toy Month for every toy sold we
donated a portion of funds to The Salvation Army,
Aspire programme. Total funds raised were $150,000
which will go towards supporting at-risk teens.
Back to School appeal
This year marked the 13th year of our annual back-to
–school appeal with The Salvation Army to support
families struggling with back-to-school costs.
Customers were invited to add a donation at the
checkout of our Warehouse Stationery stores, which
we matched dollar for dollar to provide $44,000 of
essential school supplies to families in need.
Access to period products
In partnership with The Period Place, we’re helping
to eliminate period poverty in Aotearoa. There is a
network of period product collection boxes in 26
The Warehouse stores nationwide, with the donated
products going to local organisations in need. We’re
also continuing to make period products accessible
and affordable through our range of $1 pads with one
for every 10 sold donated to those most in need. More
than 48,000 period products were donated through
the initiative this year, bringing our total donations
to date to more than 180,000 period products. We
SUPPORTING OUR COMMUNITIES
Be the Joy
This Christmas we partnered again with Women’s
Refuge and Variety – the Children’s Charity on our
Be the Joy campaign, to provide gifts to more than
17,000 Kiwi kids who may otherwise go without.
Customers were able to purchase a $10 swing tag at
checkout, which the Group then turned into a $25 gift
for a child in need. The Warehouse stores nationwide
also collected new, unwrapped gifts for their local
Women’s Refuge and Auckland City Mission at
selected Auckland stores.
TWG Gateway Programme
TWG is proud to offer Year 12 and 13 school students
work experience and the opportunity to achieve unit
standard credits through the Gateway programme.
Red Shirts in Schools in The Warehouse, Blue Shirts
in Schools in Warehouse Stationery and Discovering
Passionate Experts in Noel Leeming reached
1782 student enrolments in FY22 – an excellent
participation rate given the continued COVID-19
disruptions throughout the year. The programmes,
in partnership with ServiceIQ, are an opportunity
for students to get hands-on experience in the
exciting retail industry and a chance to make helpful
professional contacts for when they leave school.
The Gateway programme is also currently being
trialled in our Auckland Torpedo7 Bike Hub, with plans
to extend the programme to Torpedo7 stores and
distribution centres during FY23.
P-TECH Programme
During FY22 TWG continued its role as a key partner
in the IBM P-TECH (Pathways in Technology)
programme. P-TECH focuses on developing digital
skills and job-ready students and is now in 28
countries globally. The programme has expanded
significantly in New Zealand to include five new
industry partners, four new schools and one new
tertiary partner.
When TWG first heard about P-TECH we recognised
the programme’s unique value and potential. TWG led
the way by becoming the founding industry partner
with IBM. P-TECH brings together the best elements
between high school, tertiary education and the
professional world and enables students to begin
their tertiary and professional lives more quickly and
with greater support than the typical school-to-
work pathway. As an industry partner TWG provides
financial assistance, paid internships, mentors who
coach, guide and support the students throughout the
programme and the opportunity for P-TECH graduates
to apply for employment roles within our company.
The Warehouse Group Integrated Annual Report 202226Community27

We want to take ambitious action
to make sustainable living easy and
affordable for everyone.
We will do this through four Building Blocks,
which will each deliver specific outcomes.
Increasing the number of sustainable
products with sustainable packaging and
certified ingredients, and help our suppliers
reduce their GHG emissions;
Enabling sustainable living solutions that
help our customers live a healthy, low-carbon
lifestyle;
Providing circularity solutions that reduce
the amount of post-consumer waste going
to landfill; and
SUSTAINABILITY BUILDING BLOCKS
Increasing the sustainability performance of
our operations and decreasing our operational
carbon emissions (Scope 1 & 2) to zero by 2040.
Each of these Building Blocks have short-term and
long-term targets. They are supported by new data
and resource capabilities that embed sustainability
outcomes in everything we do.
This journey means The Warehouse Group is
committed to new ambitions and we have initiatives
underpinning each of these which give us a high level
of confidence that we will:
• achieve 100% of our private label products and
packaging to be sustainable or have a circularity
solution by 2035;
• have 2 million New Zealanders use our sustainable
living solutions by 2035;
• enable 2.5 million customers to use our waste
recycling or circular reuse solutions by 2030;
• reach zero emissions in our operational emissions
(Scope 1 & Scope 2) by 2040; and
• target an 80% reduction of our Scope 3 emissions
covering our upstream product suppliers and
shipping and transportation by 2040.
Our targets are ambitious, and for some aspects we
know that this will require technological solutions
that currently do not exist, like a hydrogen-fuelled
shipping fleet. However, we have strong foundations
in sustainable initiatives and investments, and we
are changing the shape of our business to achieve
our goals. We are taking a stand in our Group wide
approach to sustainability.
TO MAKE SUSTAINABLE LIVING EASY
AND AFFORDABLE FOR EVERYONE
OUR VISION
Increasing the number of
sustainable products with
sustainable packaging and certified
ingredients, and help our suppliers
reduce their GHG emissions
Increase the share of
private label sales with
sustainable packaging
to 50% by 2025 and
100% by 2035;
Increase the share of
private label sales from
sustainable products,
or products with
circularity solutions to
50% by 2025 and 100%
by 2035; and
Reduce the Group’s
Scope 3 emissions by
50% by 2035 and by
80% by 2040.
The number of
customers using the
Group’s sustainable
living solutions to
be 2 million New
Zealanders by 2035;
Increase our sales of
energy and water-
efficient products by
50% by 2025 (from
2021 baseline); and
Install electric vehicle
charging stations
at all stores, where
possible, by 2030.
Enable 2.5 million
customers to use
our waste recycling
or circular reuse
solutions by 2030.
Helping our customers live a circular
lifestyle means giving them the tools
to dispose of waste and products at
the end of their useful life.
Over the past year, we have
increased the amount of soft
plastics collected in our stores
from 6.2 million units in FY21 to 10.6
million units in FY22. This shows us
that some customers have already
integrated 'bring it back' into their
shopping behaviours.
We are committed to expanding
our post-consumer waste recycling
solutions from soft plastic and
TerraCycle NZ waste recycling at
The Warehouse to e-waste and
mobile phone recycling solutions
at Noel Leeming and Warehouse
Stationery stores, with more
initiatives to come.
We are looking at more product
circularity and recycling initiatives
and the development of back-end
logistics and integration into the
customer experience.
We are launching a new customer-
centric value proposition around
sustainable living solutions.
This focuses not only on product
sustainability attributes, but on
customer sustainability benefits.
This puts us in a unique position
to help our customers live more
sustainably and understand the
impact of the choices they make.
Our belief is that sustainable living
solutions will be a growth area for
our business.
This requires us to develop
deeper consumer relationships to
explore data insights, identifying
what is and isn’t working in
stores, eCommerce and at home,
and build an approach to
telling the story of empowering
consumers to live sustainably
through new product and lifestyle
choices.
We continue to extend
sustainability attributes as our
suppliers’ capacity develops, while
reflecting the evolving industry
best practices and monitoring the
impact on cost and sell-through of
our sourcing decisions. Internally,
we are creating new tools, policies
and capabilities that integrate
sustainability attributes and
carbon data into decision making.
Reducing Scope 3 emissions is the
biggest challenge for any retailer
– this means supporting suppliers’
efforts to reduce their own Scope
1 & 2 emissions, and making
complex decisions about the
products we buy. We believe that
new data capabilities and supplier
scorecards with data integration
at the product level will help us
achieve our targets.
Our targets are measured against
private label products at The
Warehouse and Warehouse
Stationery, with planned expansion
to other brands.
The Warehouse Group has proudly
been CarbonZero since 2019. This
covers our Scope 1, 2 and measured
Scope 3
1
emissions generated by the
transportation and delivery of our
products from port of ownership to
our stores and customers.
We need to do more to reduce
our own emissions, including new
initiatives to reduce our electricity
usage, freight emissions and our
operational waste.
We already have initiatives in
flight like rolling out LED lighting
throughout our stores, electrifying
our passenger fleet, forklifts
and light commercial vehicles,
and working with our waste and
recycling partners to increase
the amount of operational waste
diverted from landfill.
1
Measured scope 3 emissions covers
product transportation, business travel
and waste services.
Reduce Scope 1 & 2
emissions aligned to a
1.5 degree trajectory
with the pathway
to zero emissions
by 2040;
Reduce domestic
and international
freight emissions by
40% by 2030 and
only use sustainable
transportation fuel
by 2040; and
Become a zero-waste
status organisation
by 2025.
Enabling sustainable living
solutions that help our
customers live a healthy,
low-carbon lifestyle
Providing circularity solutions
that reduce the amount of
post-consumer waste going
to landfill
Increasing the sustainability
performance of our operations
and decreasing our operational
carbon emissions (Scope 1 & 2)
to zero by 2040
ZERO
80%
Sustainable
living solutions
Circularity
solutions
Sustainable
products
Sustainable
operations
1
2
3
4
• Expand hard-to-recycle
packaging solutions to 100%
of our stores by end of FY23;
• Expand soft plastics recycling
scheme to 100% of our stores
by end of FY23; and
• Expand e-waste collection
solutions to 100% of TWL,
WSL and NLG stores by end
of FY23.
Our Vision | Sustainable Living29The Warehouse Group Integrated Annual Report 202228

The Warehouse Group Integrated Annual Report 20223031Our Vision | Sustainable Living

v
Our Integrated Report is designed to
report on how our resources contribute
through our retail value creation model
to deliver our vision to make sustainable
living easy and affordable for everyone.
This is demonstrated through the six
capitals as shown opposite and detailed
further in this report.
This Integrated Report has been prepared using
the International Integrated Reporting Council’s
International Integrated Reporting <IR> Framework.
Integrated Reporting aims to:
• Improve the quality of information available to
providers of financial capital;
• Promote a more cohesive and efficient approach
to corporate reporting;
• Enhance accountability and stewardship for the
broad base of capitals (inputs); and
• Support integrated thinking, decision-making and
actions that focus on the creation of value over the
short, medium and long term.
At the centre of our Integrated Reporting is the retail
value creation model, which details the capitals, or
inputs, we draw upon, our strategy and business
activities, and the outputs and outcomes we have
delivered in FY22. Refer to the following pages for
further details on each of these capitals.
In 2021 we also reported under the Global Reporting
Initiatives (GRI) reporting framework for the first time,
and we continue with this most widely used global
sustainability reporting standard this year. Refer
to pages 111 to 114 of this Annual Report for further
information on the GRI reporting framework, the
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. While
we have not sought external audit or assurance for the
non-financial information contained throughout this
Integrated Report, we have received limited assurance
on selected standards of the Group’s GRI disclosures
as well as our carbon emissions and energy
consumption which are audited by Toitū Envirocare.
1.
Delivered In Full On Time
2.
Severity 1 Frequency Rate
3.
Total Recordable Injury Frequency Rate
We strive to create a dynamic,
purpose driven organisation that
enables, equips and empowers
our people to succeed.
Our financial capital initiatives
continue to focus on ensuring
financial resilience while deploying
more capital to execute our strategy.
HUMAN CAPITAL
FINANCIAL CAPITAL
INTELLECT UAL CAPITAL
MANUFACTURED CAPITAL
INPUTSFY22 OUTPUTS
• Group (agile brands) Store NPS
up +1.4pts to 73.9
• SKU reduction of 3% for TWL
and 14% for WSL
• Online sales growth 39.8%,
15.3% of total sales
• Click & Collect sales growth
54.9%, 49.0% of online sales
• 35,600 private label product lines carrying
sustainability attributes
• 12,334 tCO2e of Scope 1 & 2 emissions
• 98% of the Group’s passenger fleet is EV
• Diverted 73.4% of operational waste
from landfills
• eNPS: In-store +24; DC and FC
+36; SSO team +48
• Women in 46.6% of senior
leadership roles
• Gender pay equity 100% at
Group level
• SV1FR
2
decreased by 36.6%
• TRIFR
3
decreased by 33.6%
• TSR 2.5%, compared to NZX gross
index decline of 8.1%
• Liquidity of $378.8m
• Final dividend 10.0 cps,
Full dividend 20.0 cps
• $140m Sustainability Linked Loans
• Inclusion in the NZX50
• Raised $3.7m for New Zealand
charities and communities
• 290 in-person and virtual
supplier training sessions
• 255 labour and environmental
supplier audits
INTEGRATED
REPORT
O
U
R

N
E
T
W
O
R
K
S
• 249 stores including 35 SWAS
• 87.7% of overseas sourced products through
3 offshore offices
• DIFOT
1
to store: 97.1%
• DIFOT home delivery: 87.4% for The Warehouse
and 93.0% for Warehouse Stationery in July 2022
Our expertise puts our customers at
the centre of all that we do. We have
enhanced our focus around five key
strategic customer experiences – which
are aligned with our purpose, our vision
and our values.
O
U
R

C
U
S
T
O
M
E
R
S
We want to build strong
relationships with our
communities and our
stakeholders to deliver
sustainable value and
positive change.
SOCIAL AND

RELATIONSHIP

CAPITAL
O
U
R

R
E
L
A
T
I
O
N
S
H
I
P
S
O
U
R

P
E
O
P
L
E
$
F
I
N
A
N
C
I
A
L

C
A
P
I
T
A
L
Our vision is to make sustainable living
easy and affordable for everyone. To
increase the sustainability of our own
operations and help our customers
save money while doing their bit to
save the planet.
NATURAL

CAPITAL
O
U
R

E
N
V
I
R
O
N
M
E
N
T
We strive to build world-class
customer experiences and an
ecosystem enabled by our portfolio
of brands, our supply chain
network and enterprise systems.
R E TA I L
VALU E
C R E ATI O N
PROCESS
S
U
P
P
O
R
T
I
N
G

N
E
W

Z
E
A
L
A
N
D

C
O
M
M
U
N
I
T
I
E
S
M
E
M
B
E
R
S
H
I
P
U
N
D
E
R
S
T
A
N
D
I
N
G

O
U
R

M
A
R
K
E
T
I
N
T
E
G
R
A
T
E
D

R
E
T
A
I
L

S
A
L
E
S

E
N
V
I
R
O
N
M
E
N
T
B
R
I
N
G
I
N
G

P
R
O
D
U
C
T

T
O

M
A
R
K
E
T
S
O
U
R
C
I
N
G

P
R
O
D
U
C
T
The Warehouse Group Integrated Annual Report 202232Integrated Report33

Risk management
The Group has defined its risk appetite and recognises
four main categories of risk:
• Strategic Risk – the consequence of an event
occurring which will damage the Group’s business
model, undermining its value proposition which
attracts customers and generates revenue.
• Financial Risk – referring to the Group’s ability
to manage its debt and financial obligations and
includes credit, liquidity, market and capital
project risk.
• Operational Risk – summarising the risks the Group
undertakes when it operates within the retail
environment which includes people, legal and
compliance, business continuity, data and security.
• Business Risk - risk to earnings arising from
developing consumer trends, supply chain risk,
pricing volatility and product risk.
Risk management framework
Our risk management framework has incorporated
agile practices, which allows the Group to identify
and manage risk and provides it with a mechanism
to adapt and respond to the dynamic environment
retail operates within. The Group’s blended approach
to risk management considers both traditional risk
management and the agile operating model, which
accommodates and learns from risk in executing
strategic initiatives.
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.
Agile application
Rapid change and increased technological
innovation within the retail sector has challenged the
Group’s ability to effectively compete. This increased
velocity poses new challenges to risk and compliance
functions as we strive to provide complementary
practices which enable insight and value.
To combat this rapid rate of change the Group has
embraced an agile team environment and ways of
working. As an agile business our team's focus on
short cyclic bursts of development, implementation,
and testing. Appropriate execution risk provides
valuable decision-enabling insight throughout the
initiative life cycle and agile delivery.
This allows optimal challenge without slowing
down agile teams. As initiatives are developed and
implemented, technology-supported controls and
real-time performance metrics can be utilised to
monitor and mitigate the new business risks.
Ultimately, aligning risk management with agile
execution enables the Group to improve customer
experiences swiftly, thereby giving the Group a
competitive advantage.
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
RISK & MATERIALITY
INHERENT
RISK RATING RISK
RISK
APPETITE
RESIDUAL

RISK RATING
Inability to source/retain key team members
with appropriate capabilities to deliver
initiatives and strategy
Sourcing/Retention
of Key Talent
highlowmedium
Failure to implement sustainability practices means
potential loss of trust in our brands, potential loss of
market share, and exposure to looming regulation

Sustainability
highmediummedium
Acceleration of global competition and customer
experiences could reduce Group market share, increase
customer acquisition costs and/or decrease profitability

Global Competition
and Disruption
highmediummedium
Customers face an increasing cost of living
affecting ability to transact with the Group
Cost of Living
very highmediummedium
Legacy IT infrastructure inhibits the
Group’s ability to transform at pace

Legacy IT
highlowhigh
Failure to execute on key deliverables impedes
other activities and may mean loss of market
leading position

Pace of Change
(execution)
mediumlowlow
Evolving consumer trends are not identified,
and the Group fails to meet their demand

Changing Consumer
Trends/Behaviour
highmediummedium
Global interruption of supply chain affects the
Group’s ability to maintain stock availability –
affecting sales

Logistics and Supply
Chain Disruption
highlowmedium
Failure to adequately protect our people and
customers from harm which could result in
serious injury
Health, Safety
and Wellbeing
mediumvery lowlow
Failure of the business to deliver a range of products
and services which the market needs and demands
Purchasing
Decisions
highhighmedium
$
$
$
Key risks
The Group periodically reviews keys risks with its senior leadership group to identify those risks which, if realised, would materially impact the success of the business. These
risks have been assigned sponsors and are appropriately managed through the implementation of suitable control measures to manage the risk. These risks are as follows:
Mōrea me te Tūponotanga
and strategies in 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 and default
trajectory of performance.
Building on an improvement may mean we have a
higher appetite 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 is the second year we have taken a further
step in our overall reporting and in particular in our
Environment, Social and Governance (ESG) targets
and initiatives by reporting under the Global Reporting
Initiatives (GRI) reporting framework and materiality
principles. This enables 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 our goals of sustainable
development. This report has been prepared in
accordance with the GRI Standards: Core option.
The Warehouse Group Integrated Annual Report 20223435Risk & Materiality

Total foot traffic across the Group decreased
12.1% in FY22 compared to the same 52 weeks in
FY21, excluding COVID-19 lockdown periods and
comparing the same weeks highlighting broader
shifts in customer shopping habits. Foot traffic for
our Warehouse Stationery SWAS stores is included
in the metrics for their respective The Warehouse
stores. Our SWAS programme has driven a decrease
in the number of store locations to 214 in FY22 from
227 in FY21. We are seeing foot traffic slowly rebuild.
Although Group store foot traffic has decreased, our
digital footprint is growing strongly. Group online
sales increased a staggering 39.8% compared to prior
year, now making up 15.3% of total Group sales. We
expect that the importance of an integrated retail
experience for our customers will accelerate into
FY23 and beyond. Our 1-hour Click & Collect service
at Noel Leeming, and our same-day Click & Collect
service in The Warehouse, have been huge successes
with our customers this year. Click & Collect sales
increased 54.9% compared to last year. This is a
significant part of our ecosystem and integrated retail
offering as customers shop from the comfort of their
own home, with the fast and convenient service of
collecting their orders instore, and then browse for
those items they want to view and shop for in person.
Our dedicated online marketplace, TheMarket.com,
has seen growth in the last year as online shopping
continued to grow as a choice for customers. With
an offering of products and brands all in one place,
TheMarket.com connects New Zealanders with 4.2
million available products from more than 6,500 of
the world’s most desirable brands. TheMarket.com
has over 390,000 active customers, and in the last
12 months hosted 39 million online sessions and saw
individual customer spend increase by 14% year on
year. We mentioned in the half year that TheMarket.com
was on track to deliver more than $100 million of
Gross Merchandise Value (GMV) and we are pleased
to report we have surpassed that with close to $110
million for the FY22 year. Our goal is for TheMarket.com
to become the go-to online shopping store for
New Zealanders.
A reliable and sustainable supply
chain network
Product supply was disrupted during the year due
to ongoing challenges in the supply chain.
Our agile structure, our ability to make fast decisions,
and our planning and sourcing processes mean we
are well placed to manage the current supply chain
challenges. Our team continues to actively manage
these disruptions both here in New Zealand and across
We strive to build world-class customer
experiences and an ecosystem enabled by:
• the integrated power of our portfolio of brands, both
online and instore;
• a reliable and sustainable supply chain network;
• enterprise systems, processes and data.
The integrated power of our portfolio
of brands both online and instore
Our portfolio of brands creates an ecosystem of
online, in-store and service offerings that serve our
customers’ wants and needs however and whenever
they want. Customers have the choice to shop
at their own convenience, and our membership
programmes and service offerings enable us to
build stronger relationships with them and extend
customer engagement across the Group.
We have 249 stores that are conveniently located
throughout New Zealand. Our store optimisation
programme ensures the stores are in the right place,
with the right footprint and the right layout to serve
our customers whenever and however they choose.
Improved store optimisation enables customers to
shop instore or collect their online orders with ease.
The Warehouse, Warehouse Stationery and
Noel Leeming saw some consolidation of store
locations as we optimise our store network.
Torpedo7 continues to expand its store footprint
with three new stores (Invercargill, Whangārei,
and Petone) opened during the year.
A key enabler of our store optimisation programme
is the continued roll-out of Warehouse Stationery
store-within-a-store (SWAS) programme. In FY22,
we integrated 10 Warehouse Stationery stores into
better-optimised The Warehouse stores, bringing
the total stores in our SWAS programme to 35 (FY21:
25). During the year we refitted three The Warehouse
stores with updated customer experiences in
Whangārei, Invercargill and Upper Hutt. We continue
to invest in our store network with improvements in
store layout, fitout, and sustainability features such as
LED lighting and in-store customer recycling options.
We strive to ensure our stores provide excellent
customer experience with layouts which are best
suited to customer shopping habits.
Our Auckland stores were closed for 84 days of
the year, while our stores across the rest of New
Zealand were closed for a minimum of 21 days due
to COVID-19 lockdown requirements, which had a
significant impact on our network. While customers
gravitated to online shopping during these periods,
increased online sales aren’t enough to replace
instore sales. Our experience over the past two years
also shows that foot traffic takes a while to increase
following lockdown periods, as customers return to
shopping in person rather than online.
We have worked hard
to improve the Click
& Collect and delivery
experience.
OUR NETWORKS
DELIVERED IN FULL
ON TIME (DIFOT)
TWL and WSL stores -
Target 98.0% (FY21: 98.0%)
SOURCED AND IMPORTED
through our offshore sourcing offices
(FY21: 88.0%)
our three international sourcing offices in India, China
and Bangladesh. Proactive management of changing
customer demand enables us to forecast our demand
needs and ensure our supply chain is managed
accordingly. In FY22, global supply disruptions and
delays impacted our sales due to lower-than-planned
availability. In response, we have increased orders on
key continuity lines, so our inventory profile remains
in good shape despite higher-than-normal levels of
inventory held at year end.
Export ex-factory prices in China have increased
8% (in USD terms) over the past year, however our
careful price management and purchase planning
remains fundamental to balancing this inflationary
pressure and supply chain disruption while
delivering value for our customers.
Across our supply chain we have increased visibility
around availability so we can take action quickly to
ensure availability in store. Shipping continues to
present challenges world wide, particularly out of
Europe and China. Shipping costs have increased
this year and we expect shipping schedules to remain
STORES
249 stores:
The Warehouse 89, Warehouse
Stationery 68, Noel Leeming 68,
Torpedo7 24
249
constrained through FY23. We have worked hard
with our suppliers and logistics network and have
secured shipping at a good rate for the next two
years – meaning confirmed price, timing and secured
shipping slots.
Despite these disruptions, the Group’s brands
have performed well with supply management
and ensuring availability and delivery to our stores
and customers.
We measure the success of our supply chain network
through stock availability in our stores and delivery
performance to our stores and customers. The supply
chain challenges, as mentioned above, particularly
impacted the first half of the year due to COVID-19
lockdown periods impacting our business and supply
networks, and this continued in the second half. As
a result, The Warehouse and Warehouse Stationery
average store availability decreased from 90.0% in
FY21 to 86.7% in FY22, while store delivery in full on
time (DIFOT) was 97.1%, compared to 98.0% in FY21
and against our target of 98.0%.
Customer DIFOT (delivery and Click & Collect) was
75.4% (FY21: 91.7%) for The Warehouse and 92.3%
(FY21: 93.4%) for Warehouse Stationery against our
target of 95.0%. Customer delivery performance
was impacted by COVID-19 related supply chain
delays in stock and processing, our own team
absenteeism, combined with congestion in our last
mile delivery network outside of our control. However,
improvements in our supply chain and distribution
networks have seen this improve to 87.4% for
The Warehouse and 93.0% for Warehouse Stationery
in the month of July.
Store distribution cost to serve increased due to
distribution centre and store COVID-19 safety and
operating requirements.
The impact of COVID-19, which has resulted in more
customers shopping online, has accelerated our
focus to develop faster and easier-to-use online
platforms for our customers and improved on-time
fulfilment capabilities for our distribution and
fulfilment centres.
Powered by enterprise systems,
processes and data
During FY22, we continued transforming our
operational ecosystem and our shift from batch
to real-time operations and execution. Real-time
and relevant data is critical to so many areas of our
ecosystem – from procurement, on-time supply and
fulfilment, customer in-store and online shopping
8 7.7 %
private label
purchases

97.1%
STORE DISTRIBUTION
COST TO SERVE
CUSTOMER FULFILMENT
COST TO SERVE
(FY21: up 4.3%)
(FY21: up 1.1%)
29.0%
2.7%
Ngā Kōtuitanga
The Warehouse Group Integrated Annual Report 20223637Our Networks

experience, payment capability, and customer data
insights through our membership programme.
During the year we completed the implementation
of the finance component of the Enterprise
Resource Planning Finance and Inventory (ERPFI)
system. The inventory component will be released
in April 2023. Delivery of ERPFI will result in
simplifying financial processes and including
real-time reporting, procurement integration,
non-trade procurement, project accounting, real-
time inventory management and improved stock
availability for stores.
We also deployed our new middleware integration
framework to standardise interfacing between all
systems in our ecosystem – with 127 major interfaces
identified, and 34 completed so far – designing in
maximum reuse to enable real-time integration to all
of the systems we need to replace and deploy over
the next few years.
We completed the deployment of our Warehouse
Management System (WMS) solution in our
North Island Distribution Centre (NIDC), the final
instalment in this multi-year programme, and
we upgraded our Apparel Sorter automation
infrastructure to ensure reliable and cost-effective
operation for the next decade and beyond.
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 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 potential 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 integrated retail
network
• Continue our SWAS programme
• Invest in store improvements and integrated
customer experience upgrades
• Launch a Group-wide booking solution for delivery,
in-home consultation and services.
Supply chain
• The deployment of ERPFI (Inventory) will improve the
accuracy of our inventory ordering, store availability
and on-time delivery to store and our customers
• We have agile squads working on availability and
the trend is improving through better stock flow
and initiatives like pack size optimisation
• Last mile delivery will improve with the
implementation of the Group Order Management
System (GOMS) and accompanying automation
network solutions in FY23
• Our availability squads are focused on inventory
management and decreasing the number of weeks
of supply of stock to bring inventory back down to
FY20/FY21 levels.
Enterprise systems, processes and data
• Real-time Inventory for distribution centres and
for our Online Fulfilment Centre
• Full deployment of forecast and replenishment
capability as a first step to achieving higher
stock availability, lower stock levels and increased
stock turns
• Extending Master Data Management (MDM) to
include Noel Leeming and supplier data
• Go-live of our HCM (HR) solution to enable more
responsive employee information management,
project/time reporting and Employee Self-Service.
The Warehouse Group Integrated Annual Report 202238Our Networks39

This year we have enhanced our focus
around five key strategic customer
experiences – which are aligned with
our purpose, our vision and our values:
Helping customers to find what
they’re looking for, at prices
that are great, every time
Providing a range of products at price points that our
customers recognise as great value remains critical
to our business. Providing range in our context means
using data to identify the optimum range width,
or Stock Keeping Units (SKUs), that can then be
matched with affordability.
Our experienced team use data insights to select our
range and to optimise and manage price points, to
deliver an improved customer experience.
Price perceptor products continue to be a driver for
range and value, as the Everyday Low Price (EDLP)
positioning of our largest brand, The Warehouse,
continues to deliver this for our customers. Through
accurate forecasting, price optimisation, SKU
reduction, and range continuity we can better meet
changes in customer preferences and demand.
We continue to see the reduction of SKUs across
the business, ending the year with 3% less SKUs in
The Warehouse and 14% less SKUs in Warehouse
Stationery when compared to the same period in the
previous year. This has been a strategic priority for
us over the last five years, to deliver a clear product
offering for our customers.
Our increased grocery range in The Warehouse is
a great example of meeting customer range and
value needs. Offering great value to our customers
is important for us across our entire range, and with
grocery prices being so important as Kiwis struggle
with cost of living increases, we are proud to already
have thousands of market-leading everyday low prices
across food, pet, and household essentials – including
New Zealand’s lowest price on butter, and saving Kiwis
over $6 on a basket of key breakfast items including
Weetbix, milk, bread, eggs, oats and coffee.
We believe that New Zealanders don’t need more
of the same when it comes to groceries, and we are
uniquely positioned to be a nationwide disrupter in
this space to truly champion value and continue to
provide customers with the joy of saving money in
their weekly grocery shop.
As a result of the incredible demand for our value
grocery items, our key focus remains ensuring
availability for customers so that we can build The
Warehouse into a trusted destination for key grocery
OUR CUSTOMERS
ONLINE SALES GROWTH
Making up 15.3% of total Group Sales
STOCK TURN
Average stock turn 4.9 times
(FY21: 5.3 times)

AGED INVENTORY
Aged inventory as a percentage
of finished goods inventory 17.7%
(FY21: 16.1%)

items while delivering the right value proposition for
our customers. For example, the customer demand
for our $4 butter offer exceeded our expectations
and initially sold out around the country, but with the
support of our supplier partner we were able to scale
up both our delivery frequency and volume to fulfil
strong customer demand.
This year we also launched our home brand Market
Kitchen range into a variety of new categories and
product lines, delivering high quality grocery products
at the best prices in the market - e.g. 1.5 kilograms of
flour for just $1.00 for MarketClub members.
Helping customers to enjoy
fast, easy, and reliable ways
to get what they need
Our priority is to ensure availability and fulfilment
through our integrated supply chain, which are critical
to helping our customers get what they need from us.
We are creating convenient fulfilment experiences for
our customers, so they get the right products better,
faster, more sustainably and more cost-effectively
than before – all powered by intelligent, automated
and integrated decision making.
In terms of availability, we have improved our
processes for assortment decisions, which enables
us to determine what and how much should be
carried in a merchandise category. We are increasing
our continuity ranging, reducing product churn,
and delivering value through improved quality and
everyday low prices. Due to higher average inventory
held during the year, our stock turn has decreased
slightly from 5.3 times in FY21 to 4.9 in FY22.
We continue to invest in inventory and supply chain
infrastructure, to ensure the right stock is in the right
place at the right time, delivering an exceptional
STOCK KEEPING UNIT
(SKU) REDUCTION
MARKET SHARE FOR

THE GROUP
Core Retail
2
(+1.1 pts from FY21)
Total Retail
(+0.1 pts from FY21)
18.8%
5.8%
Warehouse Stationery
(-13% in FY21)
14%
The Warehouse
(-18% in FY21)
3%
39.8%
IN VALUE PERCEPTION
ACROSS KEY COMPETES
1

customer experience. In FY22 we started the
implementation of the Enterprise Resource Planning
(ERP) finance and inventory systems. Other core
inventory systems development includes the Group
Order Management System (GOMS), replacing our
legacy Warehouse Management System (WMS) in our
distribution centres, and additional network redesign.
In FY22 we started the process to redesign our
delivery and fulfilment network. Our vision is to create
an integrated supply chain that will deliver market
leading service for our customers. One key deliverable
this year was the successful deployment of our new
Warehouse Management System in our main NIDC
giving us better visibility and control of stock flow
through the facility. But that’s just the beginning,
with all aspects of supply chain from forecasting and
planning to transportation optimisation in scope.
We know our customers are increasingly buying the
products they want online, and we are developing
our websites and apps to deliver on this experience.
Online sales for the Group, increased to $503.3
million (FY21: $360.1 million), an increase of 39.8%,
and now accounts for 15.3% of total Group sales. The
Warehouse saw the biggest online sales growth at
60.5%, followed by Noel Leeming at 50.3% - notably all
brands grew their online gross profit faster than online
sales, showing excellent progress on improving the
profitability of the channel long term.
Online traffic for the Group also increased 41.9% to 259
million sessions, with The Warehouse app driving the
majority of growth with app sessions up 186% year on
year. The Warehouse, Noel Leeming and Torpedo7 also
saw significant improvements in online conversion,
ranging from +10% to +30% year on year.
Our customers are loving the convenience of
shopping online and collecting their goods instore,
driving Click & Collect sales growth of 54.9% across
our integrated retail brands (excluding 1-day and
TheMarket.com), which is more than double the 21.1%
growth we saw in FY21. Click & Collect sales now
represent 49.0% of total online sales for these brands.
The Warehouse same-day pick-up offering saw Click &
Collect sales increase 86.8%, making up 45.9% of The
Warehouse online sales, while Noel Leeming’s 1-hour
pick-up continues to provide a huge convenience for
our customers, with Click & Collect sales increasing
40.4% to make up 57.7% of Noel Leeming online sales.
Our mobile apps for TheMarket.com, The Warehouse
and Noel Leeming continue to be loved by Kiwis,
with all three apps charting as top 10 shopping
apps during the year – including The Warehouse app
reaching the number 1 app download spot out of all
New Zealand apps for nine days during the peak Easter
trading periods.
Helping customers to have
access to affordable solutions
that help them live sustainably
Our insights show a clear trend and link between cost
of living and the desire to live more sustainably. We are
committed to providing customers with sustainable and
affordable solutions, to not only help them save money,
but to help everyone to do their bit to look after our
planet, our people, and our communities.
The Warehouse Group has set a new ambition with
a roadmap to zero emissions by 2040. The outcomes
of this ambition are four fold – it is a commitment to
accelerate our products' sustainability performance and
achieve zero emissions in our operations. Specifically
for our customers, it is offering our customers a range
of everyday sustainable living solutions and building
circularity solutions.
It means helping customers buy more sustainable
products and to reduce their packaging waste, helping
#1
1
2
3
Ngā Kiritaki
THE
WAREHOUSE
The Warehouse Group Integrated Annual Report 20224041Our Customers

Our Vision | Sustainable Living
customers live a healthy lifestyle, save energy and
water, and reduce their transportation emissions while
helping customers with their product waste through
resale, exchange, trade-in and recycle options. It is
also giving customers confidence in the knowledge
that The Warehouse Group is doing everything it can
to reduce our own operational carbon emissions and
to be a zero-waste organisation.
In 2022, we carried over 35,600 private label products
with sustainable features across the Group, accounting
for over $213 million in sales during the year. These are
products that are either sourced through sustainable
production methods, made from more sustainable
materials or have sustainable packaging.
We have also increased our circularity solutions
for our customers, including soft plastic recycling
options in 38 The Warehouse stores and e-waste
and mobile phone recycling in 16 Noel Leeming
and five Warehouse Stationery stores. Other
solutions we are trialling include the TerraCycle
recycling programme for hard to recycle items
such as toothpaste tubes and caps, toothbrushes,
5
coffee capsules and Zuru Bunch O’ Balloons. The
Warehouse also ran a toy recycling initiative as part
of Mega Toy Month, during which we collected
40 cubic metres of plastic toy waste which will be
recycled into playground surfacing, picnic tables,
benches and musical instruments.
Helping customers to
feel recognised and
rewarded
Growing customer engagement and relationships
means everything in retail, and we are working
hard to provide what our customers want and need
through the power of our portfolio, delivering the
products and the services they most want to keep
them coming back to us. This year we launched
MarketClub into The Warehouse and TheMarket.com
as our membership programme.
In less than a year since its launch, MarketClub has
rapidly grown to nearly 600,000 active members
in FY22, who are now enjoying incredible offers
and value above and beyond our everyday low
prices, including a free-shipping subscription on
TheMarket.com.
We are particularly encouraged by how The Warehouse
customers are choosing to become MarketClub
members, as the programme provides them even
further value and discounts on their everyday
shopping at The Warehouse.
MarketClub will continue its expansion across the
Group in FY23 as we launch new features and brands.
We see significant growth opportunities for the
programme in the future, and will continue to invest
into MarketClub as a key driver of customer value and
growth, including investments into digital systems and
integrated membership experiences across online,
apps and instore.
Helping customers get easy
and high-quality customer
service every time
Providing excellent customer service online and
instore every time is critical to our customer
experience. Changes in customer behaviour and shift
to increased online shopping and Click & Collect
delivery means we are working with our agile teams to
ensure we have the right people and the right places
to deliver the service and experience our customers
should be able to expect.
We are enhancing our systems to better support
our customers by scheduling team members when
and where they are needed. Our Group Workforce
Management Solution is integrated with other
systems to align workforce processes across the
business, and our ERP systems allow for accurate
demand forecasting, planning and budgeting.
We have optimised labour investment to improve
productivity throughout our stores and distribution
centres, including an employee engagement
programme to identify opportunities for increased
efficiencies in store. Our move to agile structure in
store and field operations further allows for flexible
roles to optimise resource allocations to meet
customer demands.
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 coordination,
data optimisation around each customer, improved
digital capabilities and attractive stores that our
customers enjoy shopping in. In acknowledgement
of the potential 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
• Extend MarketClub across the Group to enhance
customer convenience and to make them feel
valued across our brands
• Expand our sustainable living offerings for
customers
• Provide reliable and flexible fulfilment experiences
that exceed customer expectations
• Continue to deliver value leadership in The Warehouse.
1
Source: TWG Brand Tracker. The Warehouse leads on “good
value for money” perception vs key competes and 81% vs larger
compete set (+2 pts vs LY). Key competes has been extended
this year to include grocery competes into the competitive
set, given our increased participation in this market. The
Warehouse Group good value for money perception vs this
wider competitive set was 79% in FY21.
2
Core Retail means all categories excluding restaurants, fuel,
liquor stores, entertainment, supermarkets and travel.
4
The Warehouse Group Integrated Annual Report 20224243Our Customers

to enter our supply chain via third-party audits. In
FY22, we conducted 255 Labour and Environmental
audits on existing suppliers using third parties
and maintained internal continuous improvement
oversight, working actively with 236 factories to
assist them achieve compliance with our standards
and local regulations.
Ongoing audits are also undertaken to review external
environmental accreditation such as ISO 14001 or
Oeko-Tex 100 and review the factories’ environmental
management resources such as policies, environmental
hazard registers, and records associated with energy
and water conservation. We also physically assess
the actions taken to monitor wastewater discharge,
control air pollutants, dispose of solid waste, enable
recycling, and deal with any hazardous wastes. Any
environmental shortcomings identified in these
audits are remedied with corrective action plans
arising from the audit. Factories’ environmental audit
scores averaged 89% in FY22 (FY21: 88%), any non-
conformance with all audit measures are addressed
through corrective action plans.
Engaging suppliers
Our programme at Tier 1 factory level is relatively
mature – we can now trace and qualify the factories
associated with nearly 100% (500 suppliers) of
these sources.
In the past 12 months we have undertaken a pilot
programme to understand the carbon emissions
reporting and maturity in a target group of 30 Tier 2
suppliers, located in China, Bangladesh, and India.
Typically, these are facilities providing materials,
subsidiary processing or other components to our
final manufacture (Tier 1) sites.
As we had no prior commercial relationship with
this supplier group, we held a series of trainings
introducing them to The Warehouse Group and
familiarising them with our labour and environmental
policies. We then distributed and asked them to
respond to a self-assessment questionnaire closely
mirroring the audit tool we use to assess externally
Tier 1 suppliers. The self-assessment addressed
standard labour and environmental questions,
including child labour, as well as supplier readiness
to measure and respond to the call to reduce their
carbon emissions. The latter falls into the “Purchased
Goods and Services” sector of The Warehouse
Group's Scope 3
2
emissions boundary and represents
an important area of future focus for us as we seek to
reduce emissions beyond our immediate operations.
Self-assessment responses from this group indicated
compliance with existing labour, including child
labour and workers’ rights to exercise freedom of
association or collective bargaining, and environmental
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 with more than $3.7 million raised for
New Zealand charities and community groups this
year, bringing the total raised to date to more than
$79 million across the Group.
At a national level our key charity partners include
Sustainable Coastlines, Youthline, Women’s Refuge,
Variety – the Children’s Charity, The Salvation Army,
Parenting Place, Whānau Āwhina Plunket, The Period
Place, Hillary Outdoors and Life Education Trust.
The Warehouse Group Business (TWGB) has been
working with Kiwi businesses to source and set up
the products they need since 2019. Our inclusion
on the panel for the All of Government Office
Supplies contract, alongside the appointment to the
panel for the All of Government IT contract, gives
TWGB endorsement to sell to approximately 2,700
government agencies, including schools.
TWGB partnered with the Ministry of Education
to support the Lunches in Schools programme
including the supply of whiteware and appliances for
participating schools, as well as the supply of bring
your own device (BYOD) learning devices to students
needing to learn from home during lockdowns.
This year, TWGB partnered with the Auckland City
Mission for the building fit-out of HomeGround/Te
Tāpui Atawhai, a new housing and social services
facility for Auckland’s homeless and most vulnerable.
This included supplying all the whiteware and
appliances, along with all necessary homewares and
textiles from The Warehouse, for 80 apartments all
with full-service delivery and installation.
Our suppliers
Ethical sourcing
The Warehouse Group has been improving its private
label ethical sourcing programme continuously
since 2004. This focused primarily on private
label suppliers within The Warehouse, Warehouse
Stationery and Torpedo7.
The Warehouse Group Ethical Sourcing Policy
1

stipulates the requirements for suppliers providing
private label products to The Warehouse Group. This
requires suppliers to ensure that, among other things,
adequate management systems are deployed, child
labour shall not be used, employment is freely chosen,
working conditions are safe and hygienic, workers'
monetary entitlements are met or exceeded, working
hours are not excessive, freedom of association
or collective bargaining are not restricted, and
environmental protection measures are sound.
Our Ethical Sourcing Policy requires ongoing
disclosure of the identity and location of all primary
manufacturing sites associated with each purchase
order, the qualification of these sites against
internationally benchmarked labour and environmental
standards as a condition of order placement, and the
acceptance of ongoing monitoring.
In FY22, The Warehouse Group’s private label
products were sourced from around 670 factories
primarily located in China, Bangladesh, India, Vietnam,
Malaysia, Pakistan and Malaysia, involving about
300,000 workers.
Our private label factories must undergo Ethical,
Labour and Environmental audits. In FY22, a total
of 243 new factories (75% of applicants) qualified
OUR RELATIONSHIPS
regulations. However, literacy about carbon emission
calculations and the motivation to engage on this topic
was low – likely because their governments’ national
commitments to emissions reduction had not yet been
cascaded to these industrial chains. Around one third
of respondents were able to reply, at least in part, to
the Greenhouse Gas section of the assessment.
We plan to expand that further in the coming years,
especially the carbon emission reduction component.
This is a complex undertaking. We will need to
collaborate across stakeholder groups and look to
identify information systems solutions we and our
suppliers can use to measure our enterprise and
product footprints and quantify the impact of our
emissions reduction initiatives. As signatories to New
Zealand’s Climate Leaders Coalition
3
we are adopting
short and long-term gross absolute science aligned
targets for these emissions to support the delivery of
substantial reductions needed to limit future warming
to 1.5 degrees.
Supplier scorecards
Another important initiative influencing suppliers
towards more sustainable and climate friendly
practices is the development of a new supplier
scorecard, which, in addition to typical commercial
performance measures, also contains a 35% weighting
to their labour and environmental audit outcomes,
and the share of their product range carrying more
sustainable materials and packaging.
This scorecard will be used to guide sourcing
decisions and supplier selection.
Our investors
Our relationship with our shareholders is critical to
our success as a key provider of capital and owners
of the business. We engage with our shareholders
through regular investor meetings, the release of our
interim and annual reports, our annual shareholder
meeting, and through market updates via the NZX
in accordance with the principles of continuous
disclosure. We welcome all individual and group
meetings with a variety of investor groups to gain
further insights into what is most important to them.
As you will read through our Financial Capital section
of this report, our aim is to increase return on capital, to
be value accretive for our shareholders and to deliver
consistent and sustainable total shareholder returns.
This is our fourth Integrated Report through which we
inform all stakeholders of our full retail value creation
process. This adopts the principle that decisions made
in one part of the business can have impacts through
the whole retail value chain to improve outcomes for
all stakeholders, including our customers, our people,
our community, and our investors.
This is the second year we have included Global
Reporting Initiatives (GRI) as our sustainability
reporting framework. We have listened to what is
material and most important to our shareholders
and other stakeholders, and in accordance with this
framework have assessed and reported on material
economic, environmental and social matters relevant
to the Group and our stakeholders. This year we have
taken this a step further and sought external limited
assurance on selected GRI disclosures. Refer to page
111 for the GRI report and accompanying limited
assurance audit report.
We have reviewed the requirements of Task Force
on Climate-related Financial Disclosures (TCFD)
reporting, and we welcome the recent release of
the New Zealand External Reporting Board (XRB)
exposure draft on New Zealand climate-related
disclosures. We are reviewing these frameworks
to ensure our own readiness to report under the
XRB disclosures, and in line with TCFD reporting.
We are working with the XRB, other retail listed
peers, and external consultants to develop a
retail sector scenario approach to this disclosure
framework with a view to reporting under XRB and
TCFD by 2024.
Our investors, analysts and shareholder groups
are asking more about our environmental and
sustainability ambition, and while we already
voluntarily report a significant amount of information
in this area including our vision, targets and reported
metrics, we welcome the review of regulated
disclosure in New Zealand to enable our investors
to compare our ambitions, targets and performance
against our peers.
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.
Our value “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.
SUPPLIER INSIGHTS
• Continue our kaupapa to help Kiwi families thrive
through such initiatives as healthy homes, period
equity, back to school and safer homes.
• Partner with suppliers to increase the number of
products made from sustainable materials or have
other sustainable features and packaging.
• Work with suppliers through strategic relationships to
ensure our suppliers are operating in accordance with
our own ethical and responsible sourcing guidelines.
• Further develop a supplier scorecard to measure our
suppliers’ labour and environmental impact, and begin
to measure our own Scope 3 emissions from these
suppliers.
• Progress development and readiness to report
under XRB CS1 and TCFD sustainability reporting
frameworks.
1
Click here for the full The Warehouse Group Ethical
Sourcing Policy
2
https://ghgprotocol.org/standards/scope-3-standard
3
https://climateleaderscoalition.org.nz/about/statement-of-
ambition/
CHARITIES AND COMMUNITIES
$3.7 million raised
KEY PARTNERSHIPS
Sustainable Coastlines, Women’s Refuge,
The Salvation Army and Auckland City Mission
on-site or group and virtual
supplier training sessions
in-person
290
on various labour and environmental
management topics
Suppliers completed
e-learning lessons
1,418
DISTRIBUTED SUPPLIER
SELF-ASSESSMENT
QUESTIONNAIRES
to assess our Scope 3
emissions from suppliers
and set a target to put
measurements in place with
suppliers by FY25
Te Ara Whanaungatanga
The Warehouse Group Integrated Annual Report 20224445Our Relationships

For our LGTBQIA+ (lesbian, gay, transgender,
bisexual, queer, intersex and asexual) communities,
we are proud to have maintained the Rainbow
Tick accreditation for the fourth year in a row. We
focused on growing team member learning and
understanding on what’s most important for our
Rainbow community by encouraging completion
of our ‘Foundations of LGBTQIA+ Inclusion’ digital
module and donating a dollar on behalf of each
person who did this to OutLine, a confidential
counselling services and peer support phoneline for
members of the LGBTQIA+ community.
From a Te Ao Māori perspective, we partnered with
the Manukau Institute of Technology (MIT) to offer
team members an introduction to te reo Māori courses
as well as cultural competency courses to encourage
adoption of the language and further understanding
of Māori values and the role they play in our
communities, our business and New Zealand. Our
Te Kaa training programme also continued through
FY22, inviting senior leaders to develop foundational
knowledge about Māori culture and how to consider
this when leading their teams – 34 senior leaders have
received, or are currently completing, this training
since the start of the programme.
This year, we accelerated our focus on neurodiversity
as we partnered with Brain Badge to boost
understanding of diverse thinking across our
teams. Through this partnership, we offered a series
of workshops to educate our team members on
We strive to create a dynamic, purpose-
driven organisation that enables, equips
and empowers our people to succeed.
Our initiatives for our people focus on three
commitments:
• Be the best place to work by creating an
environment of belonging and connection,
celebrating the vast diversity of our people and
providing equal opportunities for everyone
• Provide learning pathways and career develop-
ment that grow our people both within the Group
and beyond
• Build a strong and effective high-performance and
agile culture that gets everyone home healthy and
safe at the end of their day.
Be the best place to work
Looking after our teams in 2022
In FY22, COVID-19 continued to play a significant
role in our business as new variants presented new
challenges for our operations as well as the health
and wellbeing of our people. Our top priority was to
look after our 12,000 team members during this time.
This included protecting our people from the ongoing
spread of the virus, so we introduced a COVID-19
Vaccine Policy requiring our team and those who work
with us to be fully vaccinated. While this policy has
evolved over time in line with Government regulations
and is now suspended, it played an important role
in keeping our team safe. We also paid our teams in
full even if our stores were closed and provided the
support and time our people needed if they were
required to isolate or fell sick with the virus.
To continue keeping our teams safe while on the
shop floor or in our distribution centres, we worked
extensively to enforce stricter social distancing,
hygiene and mask wearing protocols in all of our
locations. We also introduced regular Rapid Antigen
Testing (RATs) in our North Island Distribution Centre
as an additional safety measure to reduce the spread
of COVID-19.
Navigating various lockdowns and changes in
the COVID-19 Protection Framework meant we
also continued evolving our way of working. This
particularly applied to our support office teams who
largely worked from home for the first half of the
financial year. As we welcomed team members back to
the office, we helped teams adopt hybrid and flexible
working arrangements that balanced both personal
needs and ongoing collaboration and delivery.
Beyond COVID-19, we continued to enhance our team
member benefits. This year, we expanded our Parental
Leave Policy to offer all permanent team members
26 weeks full pay, topping up the Government’s paid
parental leave payments to 100% of a team member’s
salary or wage. These changes are in addition to
our existing parental leave benefits, which include
ongoing employer KiwiSaver contribution and
accumulation of annual leave at its full value during
the parental leave period; the ability to take one day
off each week for the first four weeks after returning
to work while continuing to be paid as normal; and the
ability for partners to take up to five days of paid leave
within 21 days either before or after the new addition
joins the family.
As the cost of living increased, we looked for
further opportunities to provide our team with easy
access to essentials they need at more affordable
prices. We increased our standard team member
discount on grocery items and pantry essentials at
OUR PEOPLE
The Warehouse stores, and continued to expand
our partnerships with other businesses to provide
our team with discounted products and services,
including health insurance, gym memberships,
optometrist care, and mobile broadband. To look after
our team members’ health and wellbeing, we also
provided our team flu and COVID-19 vaccinations,
mole map spot checks and a range of wellbeing
initiatives such as mindfulness workshops, wellbeing
e-learnings and nutritionist resources.
We are proud of our ongoing retail wage commitment,
entitling employees at The Warehouse and
Warehouse Stationery with at least a year’s worth
of service to receive a minimum of $23.58 an hour,
compared to New Zealand’s minimum wage of $21.20
an hour. Our Noel Leeming team members receive a
minimum of $21.35 an hour for sales roles and $22.50
an hour for non-sales roles, while our Torpedo7
team members receive an entry level wage of $21.20
for sales roles – with sales roles in Torpedo7 and
Noel Leeming having the ability to earn additional
commission. All our store teams are entitled to the
same retail wage commitment, regardless of gender.
At present 10.2% of our employees/contractors are
covered by collective agreements.
For our Store Support Office (SSO) teams, we
implemented contribution models for every role.
This is a central component of our agile ways of
working and sets out the skills and deliverables
required for every role and determines someone’s
career path, development needs and remuneration.
Our teams have worked incredibly hard, the growth
against contribution models is clear, and employees’
performance and remuneration can now be linked
back to individual and group performance against
these contribution models.
Due to improvements in our recruitment processes,
systems and onboarding process, we have reduced the
number of average days to fill roles to 33 days in FY22
across the Group, compared to 37 days in FY21 – in a
very tight candidate market. Our onboarding in The
Warehouse stores was a key focus area for us in FY22,
and this group had its time to hire drop to an average
of 29 days in FY22 compared to 35 days in FY21.
Celebrating diversity and inclusion
We’re committed to building an environment where
our team can bring their whole selves to work.
In FY22, we focused on four pillars to increase
our diversity and inclusion practices and reduce
unconscious bias. These included fostering a sense
of belonging across all cultures, genders, ages and
sexual orientations; encouraging and enriching
the understanding of Te Ao Māori; furthering our
commitment to gender equity; and providing equal
opportunities for all.
Against our target of 100% gender
pay equity by 2022 (FY21: 89.0%)
of senior leaders
who are female (FY21: 44.4%)

100%
46.6%
Gender pay
equity
Increase to
different ways of thinking and the various types of
neurodiversity including ADHD, Autism, OCD, dyslexia
and more. We also introduced whole brain thinking
assessments to our teams at SSO, providing insight
into various thinking patterns across individuals and
teams. We plan to expand these assessments beyond
our head office teams in the future.
Gender equity remains a core focus for us, and
we’re pleased to continue our efforts on maintaining
100% gender pay equity at Group level, with female
leaders holding 46.6% of senior leadership roles.
Since year end the board of directors has achieved
a 50/50 gender split. We also had 99 team members
participate in our Lean in Circles programme which
aims to counteract gender bias, navigate gender
dynamics, provide leadership development for
women and work towards gender equity.
This year, we’ll be launching team member-led
community groups, enabling our teams to come
together and drive the topics and initiatives they’re
most passionate about. Refer to page 101 for our full
Diversity and Inclusion report.
Growing our people through
learning and career development
A core part of our people strategy is anchored in
accelerating the acquisition and development of
future-ready talent. As such, strengthening our
robust learning programmes and talent strategy is
a priority in growing our people.
At The Warehouse Group, learning opportunities are
vast, spanning from retail and role-based learning,
leadership development and future-skills training,
as well as transition assistance programmes. Overall,
there are over 113,000 hours of learning available for
our team members.
To support retail education, our team members
are able to gain their NZQA Retail qualifications
through our partnership with ServiceIQ. This year
over 45 team members have completed or begun
the certificate programmes (Retail Savvy and Retail
Level 3) covering topics such as service excellence,
product knowledge, health and safety on the job, and
resilience in the face of an ever-evolving industry.
Ngā Tāngata
The Warehouse Group Integrated Annual Report 20224647Our People

within 10 days was 90% against our target of 96%
by FY25.
Safety assurance reviews
We undertake internal safety assurance reviews
across our store network, with 99 store reviews
completed this year, a decrease year on year due to
COVID-19 disruptions (FY21: 152 store reviews). These
reviews ensure our stores have in place the necessary
legal requirements, ACC Accredited Employer
requirements and store level critical risk controls. This
programme of work provides the Leadership Squad
and the Board assurance that the underlying HSW
processes are effectively keeping team members,
contractors and members of the public safe. The
safety assurance reviews have been integral in the
management and improvement of our hazards and
risks and working towards best practice, so much so
that we will be rolling these out across our logistics
and fulfilment locations in FY23.
Over the last few years, we have been actively
working on moving from a culture of compliance to
a culture of care. We are attributing this shift to the
more positive results we have been achieving.
Wellbeing
Team member wellbeing continues to be an
important focus for us. This year, we launched our
partnership with Benestar, a leading employee
assistance programme and wellbeing provider,
offering our team a holistic suite of wellbeing
support. This includes access to physical, financial
and mental wellbeing support through free coaching
and counselling services, self-help support options,
online resources and LiveChat or phone call.
We also partnered with Groov, a wellbeing
organisation founded by former All Black and mental
health advocate Sir John Kirwan to provide over
1,000 leaders in our business with an end-to-end
programme to help them look after their teams and
their personal mental wellbeing. Through Groov,
team members have access to advice on how to
help lead wellbeing discussions with their team,
Through our TWG scholarship, we also offer
team members support to complete a vocational
qualification related to a career in retail. In FY22 we
were pleased to grant the scholarship to 13 recipients
representing all areas of the business, from our stores,
distribution centres and a variety of departments
across our support office.
For team members wanting to upskill or reskill in
an area of their choice, our External Learning Fund
provides all team members up to $2,000 per person
to fund a course or training that supports their
personal career development. Through both the
TWG scholarship and our External Learning Fund,
we provided over $500,000 in funding for our team
members this year.
In FY22, we expanded our focus on compliance
learning to store team members, including anti-
corruption policies and procedures that help keep
our team members and customers safe. These
include topics such as privacy, consumer protection
and unfair business conduct, fraud awareness,
anti-bribery and corruption, insider trading and
other related topics. As of 31 July 2022, 76% of our
employees across SSO and Stores had completed the
anti-corruption training. This training will be required
every year and will be launched to our distribution
team members in early FY23.
Developing our current and future leaders is an
essential part of our talent strategy. We continue
to expand our Store Leadership Programmes with
over 40 team members taking part across all of our
brands in FY22. This year, we also launched the Link
Leadership Development Programme for current
and aspiring leaders in our support offices with over
120 team members enrolled in its first two months.
Additionally, we invited 40 top leaders from across
the business to attend high-performance workshops,
focused on unlocking personal and team potential.
This will be expanded to 450 additional leaders
across the business in early FY23.
For team members bidding farewell to The Warehouse
Group, our NZ Future Skills Fund (NZFSF) is offered
to all exiting team members to enable them to upskill
or study any programme of work to support their
employability in the future. For team members whose
positions have ended due to retirement or termination
of employment, transition assistance programmes are
provided to support them with future employability
and career growth beyond the Group.
Finally, we consistently encourage team members
to take control of their own learning by providing
a number of self-led learning opportunities. This
includes our Udemy digital learning platform,
which we’ve grown in FY22 to offer over 204,000
digital courses across an array of topics; personal
proficiency programmes and more.
A total of 78,894 hours has been spent on training
our team members during FY22. This equates
to approximately 6.7 hours training per person
per year and covers a range of programmes that
provide learning and development opportunities
for our current team members as well as transition
assistance programmes.
Health, safety and wellbeing
The health and safety of our people, our customers
and our suppliers is of utmost priority for the entire
Group, to promote a safety culture that supports a
workplace where everyone gets home safely at the
end of their day.
We have an open and consultative approach talking
about and reporting on health, safety and wellbeing
matters at all levels of the organisation from the Board-
level Health, Safety and Wellbeing (HSW) Committee
to store safety huddles. The Group’s HSW plan and
reported metrics are monitored at Leadership Squad
level, and reported to the HSW Committee.
This year, we have implemented further programmes,
initiatives and training modules across our teams
to increase the awareness of health and safety, and
reduce the risk of injury to our people and customers.
The implementation of a new health and safety system,
EcoPortal, also means we can track and monitor health
and safety programmes, measurements and incidents,
and take mitigating action quickly. This year we also
achieved Tertiary level of performance under the ACC
Accredited Employers Partnership Programme, which
is the highest level.
This year has seen a significant increase in the
number of retail store ram raids, particularly in
Auckland, and our business has been no exception.
These have been widely publicised in the media,
and we are working with the New Zealand Police
to combat these events. Ram raids not only cause
damage to our stores, resulting in financial loss
through store repairs and loss of product, but they
have a severe impact on the mental wellbeing of our
people and their ability to feel safe at work. We are
working with NZ Police to install mitigating factors
in our stores such as increased bollards, smoke
cannons, extra cameras and security, and we are
providing counselling and support for our store team
members to ensure they feel safe at work, particularly
after any incidents in our stores.
Critical risk management
The Group’s HSW plan includes a critical risk
programme which addresses our various identified
high-risk activities which have the potential to result
in a fatality or an individual sustaining a life-altering
injury. While all health and safety risks are actively
addressed, two significant risks have been assessed
as having the highest potential to occur and result in
more severe consequences – those being violent and
aggressive behaviour (VAB) and traffic management.
The number of serious VAB incidents towards our
team members was 38 in the year ending July 2022
(down from 39 in FY21). All permanent store team
members have completed a simulation training
programme for de-escalation and prevention skills
for violence and abuse – this will be refreshed every
year and is part of our new employee induction
programme. As a result of traffic management safety
plans implemented in FY21, including online traffic
management training, traffic management critical
events reduced 65.6% year on year, following a 60%
decrease in FY21, to just 11 recorded events in FY22.
Further health and safety improvements, training
and other initiatives have been a real focus for our
teams this year. The number of Severity 1 events
associated with our critical risks decreased 45.3%
in FY22, following a 45.7% reduction in FY21, to just
52 Severity 1 critical risk events in FY22. The Total
Severity 1 Frequency Rate (SV1FR) was 5.9 per million
hours worked, a significant decrease of 36.6% from 9.3
per million hours worked in FY21.
We are also pleased to report Total Recordable Injuries
(TRI) decreased 26.3% to 386 in FY22, while the Total
Recordable Injury Frequency Rate (TRIFR) was 24.7
per million hours worked in FY22, a decrease of 33.6%
compared to 37.2 per million hours worked in FY21.
Same day injury reporting was 89% in FY22, against
our target of 96% by FY25, while incidents closed

interactive modules to help close knowledge gaps
and ideas on ways to put in place regular wellbeing
checkpoints or ‘rituals’ in their day-to-day lives.
Future focus
FY22 saw us further evolve and grow agile ways of
working to enable high-performing teams who deliver
the best outcomes for our customers and business.
A constant consideration for us is where other parts
of the business can benefit from the autonomy,
faster decision making and career development
opportunities that comes with agile methodologies.
As such, FY23 will see us extend our agile ways of
working to include our commercial (TWG Business),
services and store leadership teams across The
Warehouse, Warehouse Stationery and Noel Leeming.
This move, along with the continuous expansion of our
learning and development programmes, will contribute
to our goal of building a purpose-driven, adaptive and
future-ready workforce.
We’ll also be looking to embed our new vision (to make
sustainable living easy and affordable for everyone)
into our core business priorities and deliverables. An
essential element of this includes helping our people
understand our collective responsibility as a team
to bring this vision to life. As such, we’ll be reviewing
our team member contribution models to introduce
a sustainable living variable tailored to each of our
teams and their roles.
For health, safety and wellbeing, our focus is always
on continuous improvement as we work towards
best practice. Our focus going forward is building
knowledge and empowering our team members to
become proactive with health, safety and wellbeing.
There is a deliberate move from compliance to care
as we evolve our wellbeing offer to focus on the
holistic wellbeing of our team members. We will
be offering education and support across four key
aspects of wellbeing: physical, mental, financial and
ways of working.
EMPLOYEE NPS METRICS
Instore team
members
up 8 pts
+24
DC and FC
team members
up 10 pts
+36
SSO team
members
up 14 pts
+48
The Warehouse Group Integrated Annual Report 20224849Our People

Noel Leeming sales decreased 2.8% from $1,128
million to $1,097m in FY22, after an exceptionally
strong FY21 when sales grew 11.7%. Torpedo7 bucked
this trend, with Kiwi’s demand for outdoor pursuits
and increased store footprint driving extraordinary
sales growth of 8.0% from $159 million in FY21 to
$171 million in FY22.
While total store foot traffic for the year decreased
12.1% across the Group,
2
our strong online presence
did help to partially offset the loss of in-store sales.
Foot traffic saw an improving trend towards the end
of the year with Q4 down 9.9% on last year. Online
sales were up 39.8% compared to last year across the
Group, including TheMarket.com, and contributing
15.3% of total Group sales.
The Warehouse saw a significant increase in online
traffic sessions and app downloads, resulting in
online sales growth of 60.5% compared to last year
and contributing 10.5% of The Warehouse sales.
Warehouse Stationery also experienced strong
online sales, as people were required to learn and
work from home without being able to go instore,
resulting in 20.8% growth in online sales, making up
13.7% of Warehouse Stationery sales. Noel Leeming’s
1-hour Click & Collect offering saw a surge in online
participation, with online sales growth of 50.3%
compared to last year, making up 16.3% of Noel
Leeming sales. Torpedo7 online sales surpassed the
brand’s overall sales growth, with 31.0% growth in
online sales, making up 35.3% of Torpedo7 sales.
We are extremely proud of our distribution and
fulfilment centres for stepping up and meeting the
challenge of these increased online, fulfilment and
delivery requirements.
Our financial capital initiatives continue
to focus on ensuring financial resilience
while deploying more capital to execute
our strategy.
Our demand for capital within the business reached a
new high in FY22, with core systems and investment
in our store network being the largest areas of
investment. Our strategy on financial capital focuses
on the following key areas:
• Financial resilience while enabling investment;
• Managing gross profit margin while maintaining
sales growth;
• Efficient allocation of capital based on group
strategy and return metrics; and
• Increased return on invested capital over a five-
year horizon.
We continue to evolve our business planning and
performance review process under an agile operating
model. There is an increasing focus on our five-year
plan, the translation of this into an Annual Business
Plan (ABP), and how this is reviewed and amended
during the year through our Quarterly Business
Review (QBR) process. The business, more than
ever, faces an excess of demand for its financial and
human capital resources. Prioritising and sequencing
these demands to maximise long term value has been
a significant focus during FY23 planning.
Financial Resilience
FY22 continued to challenge the resilience of our
people and the financial performance of the Group.
Due to COVID-19 lockdowns, our Auckland stores
were closed for 84 days, and the rest of New Zealand
stores were closed for a minimum of 21 days in the first
half of the year, and we operated for 74 days at Red
level during the second half. This required our people,
systems and infrastructure to once again pivot as our
customers shopped online. We are extremely proud
of our team who adapted, and our systems which
allowed our distribution and fulfilment centres to
deliver on this change of operations.
Our revenue was impacted during this period and
seasonal inventory which would normally have a high
turnover during August to October 2021 was not
sold to plan, resulting in increased discounting and
clearance. This was compounded by shipping delays
which impacted the recovery experienced in Q2, and
has continued through to year end contributing to
total inventory being $105 million higher than the
prior year.
Financial Performance
Total Group Revenue was $3.3 billion in FY22, down
3.5% from $3.4 billion in FY21. All our brands were
impacted by store closures and restricted operations,
but we were also lapping an extremely strong FY21
which delivered a significant rebound in financial
performance after the COVID-19 impacts of FY20.
On the basis of comparable Adjusted NPAT, the
FY22 result of $96.9m EBIT was the Group’s second
best result in the last 15 years based on comparable
Adjusted NPAT.
The Warehouse sales decreased 4.3% from $1,805
million to $1,727m in FY22 but finished the year
strongly up 0.4% in the final quarter and showing
an improving trend. Warehouse Stationery sales
decreased 9.1% from $275m to $250m in FY22.
Warehouse Stationery was particularly impacted
by decreased back to school and home office sales
as a lot of our customers were well stocked with
these supplies from prior years.
FINANCIAL CAPITAL
The first half of FY22 saw significant challenge in
our gross profit margin due to increased shipping
costs, cost of fulfilment, product mix and clearance
activity required to clear unsold inventory. We
are pleased to report a turnaround in gross profit
margin performance in the second half of FY22 as
trading normalised and adapted to shipping cost
and other inflationary pressures. Gross profit margin
was 35.3% for the full year FY22, down from a strong
performance of 36.4% in FY21, but an improvement
from 34.7% in the first half to 36.1% in the second
half of FY22.
Cash Flow and Financial Position
Operating cash flows were $105.4 million, a decrease
of 53.3% on the prior year reflecting the decrease
in revenue and gross margin in the year, combined
with higher working capital primarily due to
increased inventory on hand at year end. This has
been in part driven by a continuation of shipping
delays and the objective of carrying sufficient
inventory for our critical Q2 trading period, which
last year was impacted by availability.
This higher working capital, combined with a record
capital expenditure of $140.6 million (before Cloud
Computing Arrangement accounting adjustments),
higher than usual dividend cash flow of $95.9 million
with FY21 final dividend of 17.5 cents paid during
FY22, has resulted in a $201.7 million movement in
the Group’s cash position and finishing the year with
$41.2 million of net debt.
The Group’s largest term commitment is its leased
property portfolio which comprises 246 out of our
249 stores and our distribution centres. The Group
maintains lease profile flexibility by having the
majority of store lease renewals within five years and
FY22 SHAREHOLDER RETURN
FY22 NZX50 decline: 8.1%

2.5%
LIQUIDITY AT YEAR END
Compared with target liquidity range
of $350 million to $450 million
FINAL DIVIDEND
Total Dividend 20.0 cps

10.0 cps
the majority of lease final expiry dates greater than 10
years. Our store lease Weighted Average Lease Term
(WALT) until next term renewal date was 3.1 years as at
FY22, compared to 3.9 years as at FY21.
Capital Expenditure
We have previously indicated that capital
expenditure will increase in the coming years as
we increase our investment in core systems, supply
chain infrastructure, store development and digital
assets and growth initiatives across the Group. We
are conscious that we spend capital on the right
initiatives and projects which will deliver on our
strategic priorities and drive shareholder value.
Capital expenditure (before Cloud Computing
Arrangement accounting adjustments
3
) was $140.6
million in FY22, an increase from $83.2 million in FY21.
The Group’s major investments in the year were
in Core Systems, including the development of
ERP Finance and inventory for which the Finance
module was deployed during the FY22 financial
year, with further development coming in FY23 to
deploy the inventory module of this project. Other
Core Systems investment include delivery of our
Warehouse Management System, Master Data
Management, and development of our Group Order
Management System.
Store development has been underspent in recent
years, and we have seen this expenditure increase
this year with refurbishment of existing stores, and
the development of new stores. This includes the
integration of 10 Warehouse Stationery SWAS stores,
The Warehouse store refurbishments in Whangārei,
Invercargill and Upper Hutt, and three new Torpedo7
stores in Invercargill, Whangārei, and Petone.
We continue to invest in digital and customer facing
initiatives, including development of the Group
eCommerce Platform behind each brand’s apps and
websites and further development of TheMarket.com
as this marketplace grows in merchants, customers,
and session visits to deliver a record Gross
Merchandise Value (GMV) of $110 million.
Capital Expenditure and Cloud
Computing Arrangements
The Group previously capitalised costs incurred
configuring and customising software in cloud
computing arrangements as intangible software
assets, as the Group considered that it would
benefit from these costs over the expected term
of the arrangement. As a result of the International
Financial Reporting Interpretation Committee (IFRIC)
decision issued in April 2021, the Group changed its
accounting policy relating to implementation costs
for Cloud Computing Arrangements, or Software as
a Service (SaaS), resulting in a reduction of capital
expenditure in FY22 and a retrospective restatement
of the Group’s financial statements in FY21.
Capital expenditure as a percentage of depreciation
and amortisation was 209% in FY22, compared to 129%
in FY21
4
(after SaaS adjustment). The coming years
will continue to see increased capital expenditure,
particularly in core systems and customer-facing
digital initiatives as key projects continue. We expect
capital expenditure in FY23 to be between $115-$135
million after removing SaaS investments, or $145-$165
million on a comparable basis.
Access to capital
Our financial commitment is to maintain access to
diverse capital sources. The Group maintains three
primary sources of capital – operating cash flow, debt
$378.8m
Tahua Hautaonga
$millionFY22 Pre-SaaS SaaS adjustment FY22 Post-SaaS FY21 Post-SaaS
Core systems39.8(18.8)21.09.0
Store development36.0-36.013.7
Other Information Systems26.9(9.8)17.1 9.9
Digital and Customer10.9(3.9)7.0 10.5
Supply Chain5.9-5.94.9
Other21.1(0.6)20.515.7
Total Capital Expenditure140.6(33.1)107.563.7
19.5%
33.5%
16.0%
6.5%
5.5%
19.0%
1
Comparable Adjusted NPAT excluding adjustment for cloud computing arrangements
2
Excluding COVID-19 impacted store closure periods and not adjusting for the increased SWAS stores
3
Refer to Note 1.5, 2.3 and 17.0 of the 2022 Financial Statements for full details
4
FY21 Capex and Depreciation have been restated due to the change in accounting treatment for software implementation
costs associated with cloud computing arrangements.
FY22 Capex
$107.5m
The Warehouse Group Integrated Annual Report 20225051Financial Capital

and equity. The Warehouse Group has been listed
on the NZX for 28 years, and we were pleased to be
included back in the NZX50 from May 2022. Our
market capitalisation was $1.1 billion at FY22 year end.
During the year we secured additional bank facilities
of $90 million increasing our total facilities to $420
million and available Group liquidity of $378.8 million
at year end, compared to $490.5 million in prior year.
The Group’s liquidity policy targets a liquidity range
of between $350 million to $450 million.
Bank facilities include $140 million of Sustainability
Linked Loans which affirm our commitments and
targets under sustainable packaging, ethical sourcing,
reduction of carbon emissions, and gender equity.
Dividends and Total Shareholder
Return
The Group has declared a final dividend of 10.0
cps for the 2022 financial year. Combined with the
FY22 interim dividend of 10.0 cps, resulting in total
dividends of 20.0 cps for the year.
The Group is focused on Return on Invested Capital
(ROIC) as its measure of business performance.
ROIC represents the return generated by the
operating assets of the business and, relative to
Return on Funds Employed, includes the value of
Right of Use Assets which largely relate to leased
premises of physical stores, distribution centres
and fulfilment centres. The Group is delivering
shareholder value where ROIC is greater than its
cost of capital. In FY22, ROIC was 9.9% (FY21: 17.1%
5
).
The 2022 financial year has seen volatile
performance of New Zealand and global share
markets, as interest rates and inflation increase,
impacting all areas of the economy and financial
markets. The Group delivered Total Shareholder
Return (TSR) of 2.5% in FY22, due to the dividends
return in FY22 being offset by a decrease in the
share price of 5.5%, compared to a TSR of 74.9%
for the 2021 financial year. The Group’s TSR is a
significant out performance of the market with
NZX50 gross index decline of 8.1% in FY22.
Significance
Well managed financial capital enables the Group
to execute the various initiatives we identify as
important for the long-term sustainability of the
Group. Our strategy is focused on developing all six
capitals within the business – we are investing in our
network, developing customer focused initiatives,
developing our people, and investing in products and
infrastructure to make sustainable living easy and
affordable for everyone. These include financial and
non-financial outcomes, but the ability to develop,
implement and achieve them is dependent on our
financial resources.
Materiality
To deliver on our values to ‘Do Good’, to ‘Think
Customer’ and to ‘Own it” and make it happen requires
the Group to have a robust financial capital base. We
have focused on achieving a strong balance sheet
that provides capital headroom to weather potential
downturns and fund investment in value-enhancing
initiatives and strategies. Financial discipline is of
utmost importance to us and is core to making sure
that we are here for good and for all New Zealanders.
Future focus areas
• Optimise working capital across the Group including
further development of our inventory planning and
merchandising framework
• Evolve capital and labour resource allocation under
the agile framework
• Maintain diversified bank facilities to support
investment in strategic initiatives while maintaining
target liquidity
• Implement the inventory component of the ERP
system
• Continue building financial and operational risk
management capability and maturity.
5
FY21 ROIC has been restated in line with restated financial
statements for the year ended 1 August 2021.
$millionFY22FY21
Cash on hand 25.0160.5
Borrowing(66.2)-
(Net Debt) / Cash(41.2)160.5
Total Facilities 420.0330.0
Available Facilities378.8330.0
Total Liquidity378.8490.5
The Warehouse Group Integrated Annual Report 20225253Financial Capital

fabric into new yarn without the use of additional
water or dyes. Recycled cotton garments have been
well received by customers and achieved sales of
close to $1.5 million in the past year.
Man made fibres
Polyester is a widely used material in garments
and home décor and we are looking to mitigate
the environmental impact of this otherwise non-
renewable fabric by incorporating more recycled
content from polyester waste and used beverage
containers. In the 12 months to July 2022, 7.5% of our
polyester ranges featured recycled polyester.
Products include puffer jackets whose outer fabric
and inner filling is made from recycled polyester
equivalent to about 20 plastic bottles; cushion ranges
with recycled polyester fill; and pillows with recycled
polyester fill equivalent to 16 recycled bottles
per pillow.
The benefit of products made from recycled materials,
whether natural or synthetic in origin, is that they
have a reduced carbon footprint when compared to
products using virgin materials. This connects directly
to our longer-term ambition to reduce the Scope
3 emissions associated with purchased goods and
services in our supply chain.
Wood & paper products
We are a member of the Forest Stewardship Council
(FSC)
3
and the Programme for the Endorsement
of Forest Certification (PEFC)
4
to source certified,
sustainable forest management wood and paper
products within our stationery, art and craft, furniture
and other homeware products. In FY22, certified wood
and paper products accounted for $52 million in sales.
An innovative example in the paper products category
is a wheat straw (agricultural waste) and recycled
wood-based photocopy paper sourced from one of
our India partners. This product achieved around 25%
of total copy paper sales, all of which carry some form
of sustainable management certification.
Our membership of initiatives like BCI, FSC and
PEFC, along with certifications such as Oeko-Tex
100 and Rainforest Alliance, help extend our
influence on the origin of the supply chain and give
our customers confidence that their purchases are
making a positive difference.
We are committed to providing customers with
sustainable and affordable solutions, not only to help
them save money, but to do their bit to save the planet.
We have ambitious goals to make sustainable living
easy and affordable for everyone, and to achieve zero
emissions in our operations (Scope 1 & 2) by 2040.
Refer to page 28 for further details on initiatives we
are embedding to achieve these. Specifically, we are
committed to:
Increasing the number of sustainable
products with sustainable packaging
and certified ingredients, and helping our
suppliers reduce their GHG emissions;
Enabling sustainable living solutions that
help our customers live a healthy, low-carbon
lifestyle;
Providing circularity solutions that reduce
the amount of post-consumer waste going
to landfill; and
Increasing the sustainability performance of
our operations and decreasing our operational
carbon emissions (Scope 1 & 2) to zero by 2040.
Sustainable products and
packaging

Increasing the sustainability of our products and
packaging is one of the biggest contributions we can
do to make sustainable living easy and affordable for
everyone. Our ambition is to
• increase the share of private label products and
packaging which is sustainable, or which have a
circularity solution, to 50% by 2025 and 100% by
2035; and
• reduce the Group’s Scope 3 emissions generated
by our suppliers by 50% by 2035 and 80% by 2040.
“Sustainable products and packaging” mean products
that have at least one of the following attributes –
sourced through certified sustainable production
methods; made from sustainable materials; or has
sustainable packaging. We understand “sustainable
products” as a wide range of sustainable features and
certifications and also as a broad concept pointing
to a spectrum of continuous improvement across a
product’s entire life cycle rather than an absolute that
has been achieved. We anticipate that the scope of
our definition will continue to develop as we and our
suppliers gain more capability and insight.
In FY22, 22% of private label sales were from products
with one or more sustainable materials or production
features, up from 15% in FY21, representing 35,600
individual product lines and $213 million in sales.
22% of our private label sales were from products
with sustainable packaging in FY22.
Sustainable cotton
We are a member of the Better Cotton Initiative (BCI)
1

– the world’s largest sustainable cotton initiative
operating in 24 countries around the world and
accounting for 20% of global cotton production. The
fees we pay for every kilogram we source from BCI all
go directly to Better Cotton programmes and farmer
training in the field.
In the past year, over 60% of The Warehouse private
label cotton garments and home textile sales, or
26,000 product lines, were linked to our investments
in Better Cotton production techniques.
This meant that:
• An estimated 1.36 billion litres of water were saved;
• An estimated 866 kilograms of pesticides were
avoided; and
• Farmers benefited from an estimated €592,000
additional profit
2
, thanks to our sourcing of
Better Cotton.
We are also developing an alternate approach to
sourcing sustainable cotton – using fabric made
from cotton fabric offcuts from garment making. This
approach mechanically reconfigures waste cotton
Scope 1 & 2 emissions (tonnes CO
2
e)
Measured Scope 3 emissions (tonnes CO
2
e)
SCOPE 1, 2 AND MEASURED SCOPE 3 EMISSIONS (tCO2e)
2
TARGETSFY22 PROGRESS
Increasing the number of sustainable
products with sustainable packaging
and certified ingredients, and helping our
suppliers reduce their GHG emissions
Install Electric Vehicle (EV) charging
stations at all possible stores by 2030.
Become a zero-waste status organisation by 2025.
1
https://bettercotton.org/
2
Better Cotton Farmers experience profit increases for
a variety of reasons, most commonly due to increased
yields and/or optimised use of inputs (such as irrigation
water, pesticides or synthetic fertiliser).
3
https://fsc.org/en
4
https://pefc.org/
Enable 2.5 million customers to use our
waste recycling or circular reuse solutions
by 2030.
Reduce Scope 1 & 2 emissions aligned to a 1.5°C
trajectory with the pathway to zero emissions
by 2040.
• Reduce Scope 1 & 2 emissions by 42% by 2030
(from 2020 base year)
1
• 100% transition of passenger fleet EV by 2025
• 75% of stores with 100% LED lighting by 2025
Enabling sustainable living
solutions that help our customers
live a healthy, low-carbon lifestyle
Providing circularity solutions
that reduce the amount of post-
consumer waste going to landfill
Increasing the sustainability
performance of our operations
and decreasing our operational
carbon emissions (Scope 1 & 2)
to zero by 2040
22% of private label sales were derived from products with
sustainable packaging in FY22.
35,600 private label individual product lines
carried a sustainable material or production feature,
accounting for $213 million in sales (22% in FY22).
We are at the start of our sustainability journey to make sustainable living easy and affordable for everyone. Page 28 details this vision, our new Sustainability Building
Blocks and our ambitious targets to deliver these outcomes. Not all of the initiatives behind these targets are embedded in the organisation and measurable yet. Where we
have started progressing these initiatives, we have listed our FY22 progress here.
13 of the 28 The Warehouse stores which offer
free EV charging have been upgraded to 25kw
DC rapid chargers.
Diverted 73.4% of operational waste from landfills in FY22 (FY21: 77.9%)
Scope 1 & 2 emissions increased 0.3% compared to FY21
Scope 1 & 2 emissions increased 5.4% compared to our 2020
base year
98% of the Group’s light passenger fleet is EV (including fully
EV and hybrid)
28% of stores have full LED lighting (FY21: 25%)
38 The Warehouse stores offer soft plastic recycling
• 63.5 tonnes of soft plastic waste collected (up 59.6%)
16 Noel Leeming and 5 Warehouse Stationery stores offer e-waste
recycling
• 58.9 tonnes of e-waste collected (up 7.5%)
140 Noel Leeming and Warehouse Stationery stores offer ink and
toner recycling
• 8.8 tonnes (27,096 units) of ink and toner items collected
521.3 tonnes of whiteware collected from Noel Leeming customers
3 The Warehouse stores offer TerraCycle NZ recycling
Increase the share of private label sales with
sustainable packaging to 50% by 2025 and
100% by 2035.
Increase the share of private label sales
from sustainable products, or products with
circularity solutions to 50% by 2025 and
100% by 2035.
14,002
FY17FY18FY19FY20FY21FY22
14,883
12,635
11,707
12,292
12,334
25,508
25,965
26,562
24,322
24,488
24,183
PROTECTING OUR ENVIRONMENT
Manaaki Taiao
Sustainable
living solutions
Circularity
solutions
Sustainable
products
Sustainable
operations
1
2
3
4
1
FY20 was set as our base year in accordance with our
SLL agreement which aligns our Scope 1 & 2 emissions
reduction targets to 1.5°C SBTi criteria.
2
Refer to The Warehouse Group 2022 Emissions
Inventory Report for full details including standards,
methodologies, assumptions, and calculations used.
The Warehouse Group Integrated Annual Report 20225455Our Environment

Sustainable living solutions
We are launching a new customer value proposition
around sustainable living solutions. This area is in its
infancy with initiatives currently being developed.
Among other aspects, we intend to deliver solutions
to reduce our customers' energy and water usage
and increase the customer benefits to live a healthy,
productive and sustainable life.
We are in the process of installing Electric Vehicle (EV)
charging stations to all possible stores by 2030, and
13 of the 28 The Warehouse stores which already offer
free EV charging have been upgraded to 25kW DC
rapid chargers.
Circularity solutions
Enable 2.5 million customers to use our waste
recycling or circular solutions by 2030
In addition to the reduction and improvement of
packaging of our products, we continue to offer and
expand circular solutions for our customers to help
them minimise waste to landfill. Our goal is to enable
2.5 million customers to reduce their own waste,
particularly from the products we sell, by 2025.
We continue to trial our TerraCycle NZ recycling
programme, which takes hard-to-recycle products
and packaging such as toothpaste tubes and coffee
capsules, at three pilot stores. We are looking to
expand the scheme to more locations in FY23. The
Warehouse were proud to run New Zealand’s first ever
toy recycling pilot programme as part of Mega Toy
Sustainable Packaging
Customers continue to tell us that they want products
with less packaging that they can recycle readily in
their kerbside bins. The elimination of unnecessary
packaging and its compatibility with New Zealand’s
kerbside recycling infrastructure is the primary focus
of our sustainable packaging programme.
In FY22, 22% of private label sales were derived from
products with sustainable consumer packaging able
to be recycled via New Zealand’s kerbside recycling
infrastructure.
Some examples of packaging that we revised
significantly to achieve superior environmental
outcomes are:
• Bed textiles formerly packaged in non-recyclable
vinyl satchels that we switched to reusable cloth
bags or light card belly bands;
• Removing expanded polystyrene from flat-pack
furniture cartons; and
• Replacing the generic use of PVC blister packs for
Tech Accessories with small cartons or card hang
sell solutions - projected to save 43 tonnes of non-
recyclable plastic annually.
Scope 3 emissions
We have set an ambitious target to reduce Scope
3 emissions by 50% by 2035 and by 80% by 2040.
Scope 3 emissions remain the most challenging
aspect of climate action for any mass retailer
globally, and represent the vast majority of our
Group total emissions. The majority of our Scope
3 emissions are generated by our trade suppliers,
as well as through the use of our products by
our customers. As of today, we report only on our
measured Scope 3 emissions, generated from the
moment we take ownership of the products we
source. This includes the emissions associated with
our freight, transportation and shipping from port
of ownership to our distribution centres, our stores
and customers, as well as the emissions generated
from our operational waste. In FY22, our measured
Scope 3 emissions reduced by 1.2% compared to
FY21, and reduced by 0.6% compared to our 2020
base year.
In the past 12 months we have undertaken a pilot
programme to understand the carbon emissions
reporting maturity in a target group of 30 Tier 2
trade suppliers, located in China, Bangladesh,
and India. Typically, Tier 2 suppliers are facilities
providing materials, subsidiary processing or other
components to our final manufacture (Tier 1) sites.
Completing this pilot programme is the first step in
understanding our trade suppliers’ emissions profile
and crafting a strategic Scope 3 emissions reduction
roadmap. As well as working directly with our
suppliers, we have developed a new understanding
of the data capabilities required to build a product
and materials specific, carbon accounting and
emissions reporting capability in service of our
Scope 3 emissions reduction goals.
Month, during which we collected 40 cubic metres of
toys across 22 stores in a month. The collected toys will
be turned into new materials to be given a second life.
As part of our Healthy Homes campaign, we ran a
Healthy Heater Swap, whereby customers could
trade in their un-flued LPG gas heaters for a healthier,
electric option for free. We also bring convenient
circular opportunities to our customers in the comfort
of their own home, by removing and recycling old
whiteware for our customers when we deliver their
new purchases to their homes.
Through these initiatives we diverted a total of 653
tonnes of post-consumer waste from landfill disposal,
including soft plastics, e-waste, ink and toners,
whiteware, office furniture and heaters.
Sustainable operations
Climate action is of the utmost importance to The
Warehouse Group and reducing our direct carbon
emissions (Scope 1 & 2) is one of the most important
aspects of our sustainability plan. Our ambition is
to reach zero emissions in our operations by 2040 –
using no carbon offsets.
This year we have adopted new emission reduction
targets aligned to the Science Based Targets
Initiative (SBTi) and aligned with no more than 1.5°c
of global warming.
• Reduce Scope 1 & 2 emissions by 42% by 2030
(against our 2020 baseline), with a pathway to zero
emissions by 2040
• Reduce domestic and international freight
emissions by 40% by 2030 (Scope 3)
• Use only sustainable transportation fuel by 2040
(Scope 3)
• Become a zero-waste status organisation by 2025.
(Scope 3).
This year our carbon emissions footprint covering our
Scope 1, 2, and measured Scope 3 was 36,518 tonnes
of CO2 equivalent (tCO
2
e)
4
. The Group’s Scope 1 & 2
emissions increased by 0.3% compared to FY21 and
increased 5.4% compared to our 2020 base year.
Total emissions decreased by 0.7% compared to FY21
and increased 1.4% compared to our 2020 base year,
which was the year most impacted by COVID-19 with
seven weeks of lockdown periods.
The Group’s greenhouse gas (GHG) emissions
intensity ratio was 11.09 total gross GHG emissions
per revenue (tCO2e/$million) in FY22 (FY21: 10.77),
comprising Scope 1 & 2 emissions intensity ratio of
3.74 tCO2e/$million and measured Scope 3 emissions
intensity ratio of 7.34 tCO
2
e/$million, an increase
of 2.9% compared to FY21 and a decrease of 2.4%
compared to our 2020 base year.
This is insufficient to meet our reduction target.
We will need greater reductions over the coming
years to reach our 2040 target.
Various initiatives mentioned above have shown their
positive impacts on our emission footprint this year,
including:
• The Group’s international sea freight emissions
reduced by 3,002 tonnes, a 20.8% reduction
compared to FY21 due to the sea freight containers
optimisation initiative (Scope 3);
• Torpedo7 reduced its international air freight by
140 tonnes (81.9%) compared to FY21 (Scope 3);
• As of July 2022, 98% of the Group’s light passenger
fleet is EV (Scope 1);
• The Warehouse fleet emissions decreased by
52 tonnes (26.4%), Noel Leeming fleet emissions
decreased by 139 tonnes (10.3%), and Torpedo7’s
fleet emissions decreased by 5 tonnes (7.0%),
compared to FY21 (Scope 1); and
• In FY22 we converted a further seven stores to
energy efficient LED lighting with 28% of our stores
now having 100% LED lighting (up from 25.0% in
FY21) (Scope 2). This effort was slowed down by
COVID-19 related issues with getting light fittings
into the country. Five new stores are about to be
retrofitted and several more are currently under
negotiation.
E-WASTE RECYCLING
Via partner TechCollect NZ
Available at 16 Noel Leeming stores
5 Warehouse Stationery stores
Helped our customers recycle 58.9 tonnes
of e-waste (up 7.5% from FY21)
SOFT PLASTIC RECYCLING
Available at 38 The Warehouse stores
Helped Kiwis recycle 63.5 tonnes of
soft plastic waste (up 19.6% from FY21)
equivalent to 10.6 million
INK & TONER RECYCLING
Available at 140 Noel Leeming and
Warehouse Stationery stores
Recycle all ink and toner brands
Collected 8.8 tonnes (27,096 units) in FY22
ENERGY CONSUMPTION WITHIN THE ORGANISATION
1,2
FY22 Energy intensity ratio
1, 3
FY22 energy consumption
1
136 GJ / $million of revenue
up from 127 GJ / $million in FY21
14,446 GJ up 3.5% compared to FY21
FY22
consumption
FY22
consumption (GJ)
GJ increase/
(decrease) vs 2021
Diesel2,799,125 106,955 14.3%
Jet fuel
298,362 13,811 367.2%
LPG177,087 4,700 -16.8%
Petrol – premium21,875 774 -34.9%
Petrol – regular40,929 1,439 45.6%
Total Fuel Consumption3,337,379 litres127,67922.4%
Total Electricity Consumption89,197,673kWh 321,109 (2.5%)
Total Energy Consumption448,788 3.5%
1
Refer to The Warehouse Group
2022 Emissions Inventory Report, link
can be found below. The methodology
for measuring TWG energy consumption
and conversion factors is based on the
Ministry for the Environment “Measuring
Emissions: A Guide for Organisations:
2020 Detailed Guide”
.

2
Includes diesel, jet kerosene, LPG, petrol
and electricity energy consumption
used within the organisation
3
Energy intensity ratio includes energy
consumption within the organisation
only.
4
Refer to The Warehouse Group 2022
Emissions Inventory Report.
The Warehouse Group Integrated Annual Report 20225657Our Environment

The above initiatives which contributed to a decrease
in our emissions were offset by the following factors:
• The significant increase in customers online
shopping has resulted in an increase in Scope 3
emissions caused by the increase of road courier
and air courier delivery (Scope 3);
• The Warehouse’s international air freight increased
by 300 tonnes (148.5%), due to significant shipping
disruption as well as high-volume and urgent
sourcing needs for the likes of PPE and COVID-19
Rapid Antigen Testing (RAT) kits (Scope 3);
• The Warehouse’s store electricity use increased by
240 tonnes (3.6%) (Scope 2); and
• Torpedo7’s international sea freight increased by
137 tonnes (20.9%) from FY21 (Scope 3).
These are significant areas of opportunities and
challenges as the number of consumers choosing
the convenience of online shopping continues to
grow. To mitigate that trend, we need to optimise our
sourcing practice to find new efficiencies and reduce
emissions. We are already investigating with our
shipping and freight partners – both domestically and
internationally – alternative shipping options and low
emissions freight such as hydrogen and the continued
electrification of light delivery trucks which will result
in lower emissions output and carbon intensity.
Carbon emissions reporting
We have been Toitū net carbon zero certified
since 2019. This certification covers our Scope 1, 2,
and measured Scope 3 emissions. Measured Scope
3 emissions covers product transportation, business
travel and waste services. This year we offset 100% of
our Group carbon emissions (36,518 tonnes) by investing
in UN Clean Development Mechanism projects.
In December 2021, under the Carbon Disclosure
Project (CDP) framework, we were thrilled to be
scored an A- “Leadership” for Supplier Engagement,
and we have held this rating for the second year in
a row. We were awarded an overall rating of B under
the CDP framework, putting us in the category of
“Management”. The initiatives we are putting in
place across the Group are designed to take us back
to a “Leadership” position under this framework,
considering CDP’s increased expectations of the
integration of sustainability and climate impact in
our business.
Our annual carbon emissions reporting follows the
strictest audit standards (carbonzeroCertTM) of our
reporting partner, Toitū Envirocare. Our reduction
targets are aligned with the New Zealand Climate
Leaders Coalition commitments, which reflect the
Paris Agreement guidelines. The Warehouse Group is
certified in accordance with ISO 14064-1:2018 and ISO
14064-3:2019.
For an in-depth review of performance against energy
and greenhouse gas emissions please refer to
The Warehouse Group Emissions Inventory Report
which can be found here.
Become a zero-waste organisation
by 2025
To become a zero-waste organisation by 2025
will require us to reduce unnecessary, non-
recyclable shipping and freight packaging, and
where residual waste occurs ensure this is diverted
from landfill.
The majority of our internal waste is generated from
shipping and freight packaging around products
which is removed and disposed of at our distribution
centres, and general use waste in our stores and
Store Support Office (SSO). By working with our
national waste and recycling service providers, we
diverted 73.4% of our operational waste from landfills
in FY22 (FY21: 77.9%). The decrease of waste diversion
rate is due to our ongoing store refurbishment
programme, generating a significant amount of non-
recyclable materials that have to be safely disposed
of into landfills. We will continue to work with our
national waste and recycling service providers and
refurbishment contractors to better minimise waste
generated from this space.
Where possible, when waste is sent to landfill, we use
landfills which have Landfill Gas Recovery Facilities
(LGRF) which capture greenhouse gas generated
from the breakdown of organic matters to reduce
the negative climate impacts of landfill gas. In FY22,
89.5% (FY21: 96.3%) of landfill waste was sent to
landfills with LGRF.
The Warehouse Group disposed of 0.091 tonnes of
hazardous waste in FY22.
At our distribution centres we work with fibre and
plastic wrap recyclers through which we diverted
1,332 tonnes of recyclable waste from landfills in
FY22 (FY21: 1,321 tonnes).
In our stores, our national waste and recycling service
providers supply comprehensive waste minimising
solutions, including comingle paper and cardboard
recycling. At our SSO, we provide a wide variety of
recycling services to our team members, including
food waste services which diverted 13 tonnes of
compostable organic waste in FY22.
This year, we continue our work as an Impact
Partner of All Heart New Zealand, a charity that
helps corporates redirect and repurpose unwanted
and redundant items. Through this partnership,
we redirected or repurposed 51.4 tonnes of items
from landfills, and gave these items a new life with
communities in need. Through this collaboration,
we also created more than 200 hours of living wage
employment in our communities.
All waste which is directed to disposal or diverted from
disposal to recovery operations are performed offsite.
Significance
The US Climate Change Conference in Glasgow,
where The Warehouse Group joined the New
Zealand business delegation and represented
the country’s Climate Leaders Coalition, whose
members represent 38% of the of the New
Zealand economy collectively, was a reminder of
the enormous task left to do to meet the world’s
decarbonisation commitments by 2050.
In the retail sector, sustainability now means an end-
to-end transformation of our value chain to address
fast changing consumer behaviors, the acceleration of
public policy toward circularity and net zero, and the
changes made possible by technological innovation.
These trends are driving us toward a new retail model
where non-sustainable options are becoming outdated
and unacceptable, and sustainable options become
the required norm.
We see significant upside from accelerating the
transformation of our products and services, with
the opportunity to improve customers’ ability to
live sustainably, to accelerate our ambition to zero
emissions, all while achieving market share gains,
margin improvements and maintaining our
value positioning.
We also see new business models and business
opportunities in waste, circularity, subscription
models, second-hand trading platforms, waste
to feedstock, and land-to-market nature-based
solutions. This follows the significant increase in the
price of carbon credits, and the reallocation of capital
that the decarbonisation of our economy and the rise
of sustainable finance are creating.
Materiality
In October 2021, New Zealand became the first
country in the world to pass a law that will ensure
financial organisations and publicly listed companies
such as The Warehouse Group disclose and ultimately
act on climate-related risks and opportunities.
With a market share of 18.8% of core retail in New
Zealand, we have a role to play to ensure that all New
Zealanders can live a sustainable lifestyle. The 2022
Kantar Better Futures Survey shows New Zealanders’
personal commitment to living sustainably continues
an upward trend with 43% of those surveyed, up from
36% in 2021 and 32% in 2020. The same survey shows
that in New Zealand, more people are claiming to
undertake circular shopping behaviours with 78% of
those surveyed claiming to dispose of clothing and
household items through online community groups
rather than throwing them out.
Beyond the immediate customer needs, we take
on the responsibility to address the threats that
environmental degradation and climate change poses
to the health and wellbeing of current and future
generations, its direct economic cost, and its impact
on the prosperity of our communities.
There is a clear call for more to be done to change
lifestyles to restrict the increase in global temperature
of no more than 1.5°c.
Future focus areas
In FY22, we have set up our Group sustainability
ambitions, commitments and targets, and have
identified the resources investment required to
achieve our ambitions. We have also set the technical
and operational foundations needed to deliver our
current performance in sustainably sourced products,
circularity, and emissions reduction. In FY23 and
beyond we will build further capabilities to support
our new vision to make sustainable living easy and
affordable for everyone. This includes:
• Creating new roles with technical expertise
deployed in our most material areas of focus
including sourcing, logistics, operations and
customer engagement;
• Building our 12,000 team members' sustainability
mindset, craft and deliveries and embedding
sustainability outcomes in their contribution models;
• Creating new learning and development pathways
to ensure that our team members are properly
supported to deliver against the Group ambitions;
• Building the data capacity we need to fill the
gap between generic carbon emissions data and
product specific carbon accounting;
• Partnering with our suppliers in their own
decarbonisation efforts; and
• Making sustainability our superpower to attract
new talent.
We recognise that while we do not yet know where
some of the solutions will come from, we believe that
our current approach will equip us to take advantage
of them when they are available. We also recognise
that several targets we are pursuing will challenge
our capabilities or require that we change the way
we do business. These targets maintain our ability to
increase our ambition subsequently as new solutions
become available.
1.
Weights are reported using waste management providers’
waste measurement methodologies.
Operational Waste
1

Waste
Generated
(tonne)
Waste Diverted
from Disposal
(tonne)
Waste directed
to Disposal
(tonne)
General Waste 7,756 4,244 3,512
Paper 4,005 4,005 -
Fibre and a plastic wrap 1,343 1,343 -
Hazardous Waste <1 tonne -<1 tonne
Total Operational Waste
13,216 9,704 3,512
Percentage of waste diverted
and directed to disposal
73.4% 26.6%
The Warehouse Group Integrated Annual Report 20225859Our Environment

The Warehouse Group Integrated Annual Report 202260Financial Statements61The Warehouse Group Integrated Annual Report 20226061
The financial statements have been presented in a style which attempts to make them less complex and more relevant to shareholders. The note disclosures have been grouped into
six sections: ‘basis of preparation’, ‘financial performance’, ‘operating assets and liabilities’, ‘financing and capital structure’, ‘financial risk management’ and ‘other disclosures’. Each
section sets out the significant accounting policies in green text boxes applied in producing the relevant notes, along with details of any key judgements and estimates used. The
purpose of this format is to provide readers with a clearer understanding of what drives financial performance of the Group.
Certain comparative amounts reported for the previous year have been restated following adoption of the Cloud Computing Arrangement agenda decision issued by the International
Financial Reporting Standards Interpretations Committee (IFRIC) in April 2021. Information relating to these adjustments are detailed in notes 1.5 and 17.0.
These financial statements have been approved for issue by the Board of Directors on 27 September 2022.
The Warehouse Group Limited is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is Level 4, 4 Graham Street, PO Box 2219, Auckland.
FINANCIAL STATEMENTS Page
Consolidated income statement 62
Consolidated statement of comprehensive income 62
Consolidated balance sheet 63
Consolidated statement of cash flows 64
Reconciliation of operating cash flows 64
Consolidated statement of changes in equity 65
BASIS OF PREPARATION
1.1 Reporting entity 66
1.2 Compliance statement 66
1.3 Basis of preparation 66
1.4 Reporting period 66
1.5 Changes in accounting policies, interpretations
and agenda decisions 66
1.6 Significant transactions and events in the financial year 67
1.7 Critical accounting judgements, estimates and assumptions 67
1.8 Non-GAAP financial information 67
FINANCIAL PERFORMANCE
2.0 Segment information 68
2.1 Operating performance 68
2.2 Depreciation and amortisation 68
2.3 Capital expenditure 69
2.4 Balance sheet information 69
2.5 Adjustment for NZ IFRS 16 (Leases) 69
3.0 Income and expenses 70
3.1 Other income 70
3.2 Employee expense 70
3.3 Other operating expenses 70
3.4 Auditors’ fees 70
3.5 Net interest expense 70
4.0 Taxation 71
4.1 Taxation - income statement 71
4.2 Balance sheet - current taxation asset/(liability) 71
4.3 Balance sheet - deferred taxation asset 71
5.0 Adjusted net profit 72
6.0 Earnings per share 72
7.0 Dividends 73
7.1 Dividends paid 73

Page
7.2 Dividend policy reconciliation 73
7.3 Imputation credit account 73
OPERATING ASSETS AND LIABILITIES
8.0 Working capital 74
8.1 Inventory 74
8.2 Trade and other receivables 74
8.3 Trade and other payables 74
8.4 Provisions 75
9.0 Non current assets 75
9.1 Property, plant and equipment 75
9.2 Intangible assets 76
10.0 Lease liabilities and right of use assets 77
10.1 Right of use assets 77
10.2 Lease liabilities 77
10.3 Lease liability maturity analysis 77
FINANCING AND CAPITAL STRUCTURE
11.0 Equity 78
11.1 Capital management 78
11.2 Bank facilities 78
11.3 Contributed equity 78
11.4 Reserves 79
11.5 Minority interest 79
FINANCIAL RISK MANAGEMENT
12.0 Financial Risk Management 80
12.1 Financial risk factors 80
12.2 Derivative financial instruments 80
12.3 Liquidity risk 81
12.4 Credit risk 81
12.5 Market risk 81
OTHER DISCLOSURES
13.0 Key management 82
14.0 Commitments 82
15.0 Contingent liabilities 82
16.0 Related parties 82
17.0 Cloud computing arrangements 82
Financial Statements
For the 52 week period ended 31 July 2022
CONTENTS
Joan Withers
Board Chair
27 September 2022
Dean Hamilton
Audit and Risk Committee Chair
27 September 2022

The Warehouse Group Integrated Annual Report 202262Financial Statements636263
Consolidated Income Statement
For the 52 week period ended 31 July 2022
(Restated)
Note2022 2021
$ 000$ 000
Net profit for the period
87,088107,870
Items that may be reclassified subsequently to the income statement
Movement in foreign currency translation reserve
294 55
Movement in derivative cash flow hedges
8,873 26,651
Tax relating to movement in hedge reserve
(2,484)(7,463)
Other comprehensive income
6,683 19,243
Total comprehensive income
93,771127,113
Attributable to:
Shareholders of the parent
95,994128,554
Minority interest
11.5 (2,223)(1,441)
Total comprehensive income
93,771127,113
Consolidated Statement of Comprehensive Income
For the 52 week period ended 31 July 2022
(Restated)
Note2022 2021
$ 000$ 000
Retail sales
2.1 3,294,332 3,414,601
Cost of retail goods sold
8.1 (2,129,950)(2,173,245)
Gross profit
1,164,3821,241,356
Other income
3.1 7,683 7,050
Employee expense
3.2 (575,361)(582,098)
Depreciation and amortisation expense
2.2 (146,122)(143,344)
Other operating expenses
3.3 (291,812)(253,434)
Operating profit
2.1 158,770269,530
Unusual items
5.0 - (86,955)
Earnings before interest and tax
158,770182,575
Net interest expense
3.5 (36,831)(37,458)
Profit before tax
121,939145,117
Income tax expense
4.1 (34,851)(37,247)
Net profit for the period
87,088107,870
Attributable to:
Shareholders of the parent
89,311109,311
Minority interests
11.5 (2,223)(1,441)
87,088 107,870
Earnings per share attributable to shareholders of the parent
Basic earnings per share
6.0 25.9 cents 31.7 cents
(Restated)
Note2022 2021
$ 000$ 000
ASSETS
Current assets
Cash and cash equivalents
11.2 24,999 160,526
Trade and other receivables
8.2 87,853 79,545
Inventories
8.1 562,313457,151
Derivative financial instruments
12.2 29,491 8,837
Current taxation
4.2 1,505-
Total current assets
706,161706,059
Non current assets
Trade and other receivables
8.2 11,6644,408
Derivative financial instruments
12.2 - 1,310
Property, plant and equipment
9.1 224,355 194,619
Intangible assets
9.2 151,825127,179
Right of use assets
10.1 673,278 736,524
Investment in associate
1.6 3,839 -
Deferred taxation
4.3 89,22795,958
Total non current assets
1,154,1881,159,998
Total assets
2.4 1,860,3491,866,057
LIABILITIES
Current liabilities
Borrowings
11.2 66,150 -
Trade and other payables
8.3 480,596436,579
Derivative financial instruments
12.2 668 4,353
Taxation payable
4.2 - 10,878
Lease liabilities
10.2 95,849 97,812
Provisions
8.4 49,831 74,515
Total current liabilities
693,094624,137
Non current liabilities
Lease liabilities
10.2 724,991 794,379
Provisions
8.4 21,165 23,371
Total non current liabilities
746,156 817,750
Total liabilities
2.4 1,439,2501,441,887
Net assets
421,099424,170
EQUITY
Contributed equity
11.3 360,235 360,235
Reserves
11.4 12,739 6,056
Retained earnings
48,94060,573
Total equity attributable to shareholders
421,914426,864
Minority interest
11.5 (815)(2,694)
Total equity
421,099424,170
Consolidated Balance Sheet
As at 31 July 2022

The Warehouse Group Integrated Annual Report 202264Financial Statements65The Warehouse Group Integrated Annual Report 20226465
Consolidated Statement of Cash Flows
For the 52 week period ended 31 July 2022
(Restated)
Note2022 2021
$ 000 $ 000
Net profit
87,088107,870
Non cash items
Depreciation and amortisation expense
2.2 146,122 143,344
Right of use asset impairment
10.1 - 1,582
Share based payment expense
3.2 - 93
COVID 19 landlord rent relief
10.2 (1,775)-
Movement in deferred tax
4.3 4,2394,975
Interest rate hedge derivatives write-off
5.0 - 3,340
Total non cash items
148,586153,334
Items classified as investing or financing activities
Loss on disposal of property, plant and equipment
1,128 637
Loss from investment in associate
1.6 661 -
Gain on lease terminations
2.5 (2,681)(1,237)
Supplementary dividend tax credit
4.2 481 246
Total investing and financing adjustments
(411)(354)
Changes in assets and liabilities
Trade and other receivables
(15,564)1,227
Inventories
(105,162)(63,541)
Trade and other payables
30,15914,497
Provisions
(26,890)13,030
Income tax
(12,383)(104)
Total changes in assets and liabilities
(129,840)(34,891)
Net cash flows from operating activities
105,423225,959
(Restated)
Note2022 2021
$ 000 $ 000
Cash flows from operating activities
Cash received from customers
3,304,417 3,425,114
COVID-19 wage subsidy
- (67,550)
Payments to suppliers and employees
(3,119,707)(3,061,563)
Income tax paid4.2
(42,514)(32,132)
Interest paid
(36,773)(37,910)
Net cash flows from operating activities
105,423225,959
Cash flows from investing activities
Proceeds from sale of property, plant and equipment and computer software
456 190
Purchase of property, plant and equipment and computer software
(107.469)(61,878)
Purchase of associate1.6
(4,500)-
Purchase of minority interest11.5
(1,716)(239)
Net cash flows from investing activities
(113,229)(61,927)
Cash flows from financing activities
Proceeds from borrowings
66,150 -
Early termination of interest rate swaps
- (9,767)
Lease principal repayments
(98,264)(99,383)
Treasury stock dividends received
381 254
Dividends paid to parent shareholders
(95,863)(62,678)
Dividends paid to minority shareholders
(125)-
Net cash flows from financing activities
(127,721)(171,574)
Net cash outflow
(135,527)(7,542)
Opening cash position
160,526 168,068
Closing cash position
11.2 24,999 160,526
Reconciliation of Operating Cash Flows
For the 52 week period ended 31 July 2022
Consolidated Statement of Changes in Equity
For the 52 week period ended 31 July 2022
(Restated)(Restated)
Note
Share
Capital
Treasury
Shares
Hedge
Reserves
Foreign
Currency
Translation
Reserve
Retained
Earnings
Minority
Interest
Total
Equity
$ 000$ 000$ 000$ 000$ 000$ 000$ 000
For the 52 week period ended 31 July 2022
Balance at the beginning of the period
365,517 (5,282)6 ,171(115)60,573 (2,694)424,170
Profit/(loss) for the period
- - - - 89,311(2,223)87,088
Movement in foreign currency translation reserve
- - - 294 - - 294
Movement in derivative cash flow hedges
- - 8,873 - - - 8,873
Tax relating to movement in hedge reserve
4.3 - - (2,484)- - - (2,484)
Total comprehensive income/(loss)
- - 6,389 294 89,311(2,223)93,771
Contributions by and distributions to owners
Minority put options exercised
- - - - (5,943)4,227(1,716)
Dividends paid
7.1, 11. 5- - - - (95,382)(125)(95,507)
Treasury stock dividends received
- - - - 381 - 381
Balance at the end of the period
365,517 (5,282)12, 560 179 48,940(815)421,099
(note: 11.3) (note: 11.3) (note: 11.4) (note: 11.4) (note: 17.0)(note: 11.5)
For the 52 week period ended 1 August 2021
Balance at the beginning of the period
365,517 (5,456)(13,017 )(170)13,301 (794)359,381
Profit/(loss) for the period
- - - - 109,311 (1,441)107,870
Movement in foreign currency translation reserve
- - - 55 - - 55
Movement in derivative cash flow hedges
- - 26,651 - - - 26,651
Tax relating to movement in hedge reserve
4.3
- - ( 7, 4 6 3)- - - (7,463)
Total comprehensive income/(loss)
- - 19,18 8 55 109,311 (1,441)127,113
Contributions by and distributions to owners
Share rights charged to the income statement
- - - - - 93 93
Share rights vested
- - - - 1,697 (1,697)-
Minority put options exercised
- 174- - (1,558)1,145 (239)
Dividends paid
7.1- - - - (62,432)- (62,432)
Treasury stock dividends received
- - - - 254 - 254
Balance at the end of the period
365,517 (5,282)6 ,171 (115)60,573 (2,694)424,170
(note: 11.3) (note: 11.3) (note: 11.4) (note: 11.4) (note: 17.0)(note: 11.5)

The Warehouse Group Integrated Annual Report 202266Financial Statements67The Warehouse Group Integrated Annual Report 20226667
1.0 BASIS OF PREPARATION
1.1 Reporting entity
The Warehouse Group Limited (the Company) and its subsidiaries (together the Group) trade in the New Zealand retail sector. The Company is a limited liability company
incorporated and domiciled in New Zealand. The Group is registered under the Companies Act 1993 and is an FMC Reporting Entity under Part 7 of the Financial Markets
Conduct Act (FMCA) 2013. The address of its registered office is Level 4, 4 Graham Street, PO Box 2219, Auckland. The Company is listed on the New Zealand Exchange (NZX).
1.2 Compliance statement
These financial statements have been prepared in accordance with Generally Accepted Accounting Practice (GAAP), FMCA 2013 and NZX listing rules. They comply with New
Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), other applicable Financial Reporting Standards, and authoritative notes as appropriate for a for-
profit entity. The financial statements also comply with International Financial Reporting Standards (IFRS).
1.3 Basis of preparation
The measurement basis adopted in the preparation of these financial statements is historic cost, as modified by the revaluation of certain assets and liabilities at fair value. The
financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand, unless otherwise stated. Certain comparative amounts reported for the
previous year have been restated following adoption of the Cloud Computing Arrangement agenda decision issued by the International Financial Reporting Standards Interpretations
Committee (IFRIC) in April 2021. Information relating to these adjustments are detailed in notes 1.5 and 17.0.
The principal accounting policies applied in the preparation of these financial statements are set out in the accompanying notes where an accounting choice is provided by NZ IFRS,
is new or has changed, is specific to the Group’s operations or is significant or material. Where NZ IFRS does not provide any accounting policy choice, the Group has applied the
requirements of NZ IFRS but a detailed accounting policy has not been specifically included.
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Material subsidiaries at year end are listed below.
Percentage Ownership
Name of EntityPrincipal Activity
2022 2021
The Warehouse LimitedRetail
100 100
Noel Leeming Group LimitedRetail
100 100
Torpedo7 LimitedRetail
100 100
TheMarket.Com LimitedOnline marketplace
97 88
Eldamos Investments LimitedProperty
100 100
The Warehouse Nominees LimitedInvestment
100 100
1.4 Reporting period
These financial statements are for the 52 week period 2 August 2021 to 31 July 2022. The comparative period is for the 52 week period 3 August 2020 to 1 August 2021. The
Group operates on a weekly trading and reporting cycle which means most financial years represent a 52 week period. A 53 week catch-up year occurs once every 5 to 6 years
and last occurred during the 2020 financial year.
1.5 Changes in accounting policies, interpretations and agenda decisions
There have been no changes to the principal accounting policies applied in the preparation of these financial statements except for the Group’s policy relating to capitalising
implementation costs for cloud computing arrangements.
Cloud Computing Arrangements
In April 2021, the International Financial Reporting Interpretation Committee (IFRIC) issued an agenda decision clarifying the accounting treatment for software implementation
costs in cloud computing arrangements, concluding that in most instances these are likely to be an operating expense.
The Group previously capitalised costs incurred to configure and customise software in cloud computing arrangements as intangible software assets, as the Group considered
that it would benefit from these costs over the expected term of the arrangement. As a result of the IFRIC decision, the Group changed its accounting policy relating to
implementation costs for cloud computing arrangements (refer note 9.2) resulting in a retrospective restatement of the Group’s financial statements (refer note 17.0). The policy
change reduced the carrying value of the Group’s software by $63.6 million and lowered pre-tax profit by $15.9 million (2021: $11.6 million) as a result of recognising a new expense
for cloud computing implementation costs offset by a reduction in the amortisation expense related to the previously capitalised software costs.
Notes to the Financial Statements - Basis of Preparation
For the 52 week period ended 31 July 2022
Notes to the Financial Statements - Basis of Preparation
For the 52 week period ended 31 July 2022
1.6 Significant transactions and events in the financial year
Group structure
TheMarket.com
The Group increased its shareholding in TheMarket.com from 88.5% to 97.0%, when two put options were exercised in accordance with TheMarket.com share rights plan (refer note
11.5). The Group also amalgamated 1-day Limited with TheMarket.com Limited effective from the commencement of the current financial year to align the legal structure with the
way these two businesses are managed.
Investment in associate
In August 2021 the Group invested $4.5 million to acquire a 26% interest in ZOOM Health Limited (ZOOM). ZOOM is a health technology company and shareholder in ZOOM Care
Limited, an online pharmacy that delivers prescription medicine to patients. During the year the Group recognised $0.7 million as a proportionate share of ZOOM’s trading losses,
which reduced the carrying value of the investment to $3.8 million.
Other changes
The Group’s discontinued Diners Club (NZ) business which ceased operating in April 2020 was placed into a formal solvent liquidation during the year and removed from the
Companies Office register. There were no other changes to the Group’s company structure during the year. Immediately following balance date the Group legally amalgamated
Noel Leeming Group Limited with The Warehouse Limited. This amalgamation is designed to simplify support office functions but will not result in changes to the store operations or
branding. The Group also acquired the remaining 3% minority interest in TheMarket.com in August 2022 for a consideration of $0.7 million.
Impact of COVID-19
The Group’s sales were significantly impacted in the first half of the financial year when all stores across the network were closed from mid-August 2021 for three weeks in response
to a government initiated nationwide COVID-19 lockdown. The lockdown restrictions eased for much of New Zealand following the initial 3-week lockdown period but continued
in Auckland, and intermittently in Northland and parts of the Waikato for another 9 weeks. The Group did not experience the same sales rebound that occurred when the stores
reopened following previous lockdowns and while customers gravitated to online shopping during this period, the increase in online sales and Click & Collect sales did not replace the
decrease in expected instore sales.
Sales continued to be impacted into the second half of the financial year even though the Government relaxed the COVID-19 settings and shifted away from Alert Levels and
lockdowns to the less restrictive traffic light system. In response to the rising cases of the COVID-19 Omicron variant in late January 2022, the government set its traffic light
restrictions to its highest red light setting across all of New Zealand for a period of 80 days before moving to a less stringent orange setting in mid-April 2022. At these settings the
Group’s stores were open, but there was hesitancy amongst our customers to shop in stores, while Omicron remained present in the community. This hesitancy has now largely
dissipated but contributed to a decrease in foot traffic of more than 10% compared to last year, reflecting the change in customer shopping habits during the year.
Product supply was impacted by COVID-19 due to ongoing challenges in the supply chain and increased shipping costs. In addition to losing potential sales, the longer lead times
means the Group is carrying higher levels of inventory and goods in transit to ensure stock availability, which resulted in higher working capital at the end of the year.
COVID-19 also caused an increase in team member absenteeism through illness and isolation requirements, with some team members unable to work. The Group continued to pay its
team members in full during these periods.
1.7 Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires the Group to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at
balance date and the reported amounts of revenues and expenses during the year. Judgements and estimates which are material to the financial statements are found in the
following notes:
(a) Inventory (note 8.1)
(b) Lease liabilities and right of use assets (notes 10.1 and 10.2)
(c) Derivative financial instruments (note 12.2)
(d) Cloud computing arrangements (note 17.0)
1.8 Non-GAAP financial information
The Group uses operating profit, earnings before tax and interest, unusual items and adjusted net profit to describe financial performance as it considers these line items provide
a better measure of underlying business performance. These Non-GAAP measures are not prepared in accordance with NZ IFRS and may not be comparable to similarly titled
amounts reported by other companies. The Group’s policy regarding unusual items and adjusted net profit are detailed in note 5.0.

The Warehouse Group Integrated Annual Report 202268Financial Statements696869
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
2.2 Depreciation and amortisation
PPE and SoftwareRight of Use AssetsTotal
Note2022 2021 2022 2021 2022 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
The Warehouse segment
36,720 34,88267,275 67,675 103,995 102,557
Noel Leeming
8,208 8,21818,166 18,246 26,374 26,464
Torpedo7
1,282 2,1137,118 6,966 8,400 9,079
TheMarket.com
3,655 2,598 916 850 4,571 3,448
Other Group operations
1,643 1,441 1,139 355 2,782 1,796
Depreciation and amortisation expense
51,508 49,25294,614 94,092 146,122 143,344
Comprising:
Property, plant and equipment (PPE)
9.1 38,204 41,396
Computer software
9.2 13,304 7,856
51,508 49,252
2.3 Capital expenditure
Capital Expenditure
Note2022 2021
$ 000 $ 000
The Warehouse segment
95,38145,480
Noel Leeming
3,198 11,453
Torpedo7
3,657 1,003
TheMarket.com
3,290 5,462
Other Group operations
1,920 256
Capital expenditure
107,44663,654
Comprising:
Property, plant and equipment (PPE)
9.169,176 39,715
Computer software
9.238,27023,939
107,44663,654
Operating segments
The Group has four operating segments trading in the New Zealand retail sector and an online marketplace (includes 1-day). These segments form the basis of internal reporting
used by senior management and the Board of Directors to monitor and assess performance and assist with strategy decisions. The Group has disclosed its segment operating profit
performance that excludes the impacts of NZ IFRS 16 Leases, which is consistent with internal reporting and the way the Group monitors financial performance.
Each of the four main retail segments represents a distinct retail brand that operate throughout New Zealand. Customers can purchase product from the retail chains either online or
through the Group’s physical retail store network. The Group’s store network currently has 89 (2021: 90) The Warehouse stores, 68 (2021: 70) Warehouse Stationery stores, 68 (2021: 71)
Noel Leeming stores and 24 (2021: 21) Torpedo7 stores. The Warehouse and Warehouse Stationery have 35 (2021: 25) stores which are combined within one location, these stores are
included in the store numbers for both brands. The Warehouse and Warehouse Stationery have 35 (2021: 25) stores which are combined within one location, these stores are included
in the store numbers for both brands. The Warehouse predominantly sells general merchandise and apparel, Noel Leeming sells technology and appliance products, Torpedo7 sells
sporting equipment and the Warehouse Stationery sells stationery products.
Other Group operations include a property company, a chocolate factory, the Group’s overseas sourcing operations and the residual cost of unallocated support office functions.
The Warehouse segment includes capital expenditure that relates to corporate assets which are are also used by the wider Group.
2.0 SEGMENT INFORMATION
2.1 Operating performance
Retail SalesOperating ProfitRetail Operating Margin
Note20222021202220212022 2021
$ 000$ 000$ 000 $ 000% %
The Warehouse
1,726,9361,804,86175,742177,8694.4 % 9.9 %
Warehouse Stationery
249,749274,64623,05834,3259.2 % 12.5 %
Warehouse segment
1,976,6852,079,50798,800212,19 45.0 % 10.2 %
Noel Leeming
1,096,7441,128,18453,90764,7484.9 % 5.7 %
Torpedo7
171,474158,706(2,240)1,586-1.3 % 1.0 %
TheMarket.com
49,95454,455(24,734)(20,704)
Other Group operations
6,8667,141(8,961)(28,803)
Inter-segment eliminations
(7,391)(13,392)- -
Group
3,294,3323,414,601 116,772229,0213.5 % 6.7 %
Adjustments for NZ IFRS 16
2.5 41,99840,509
Operating profit
158,770269,530
Unusual items
5.0 - (86,955)
Earnings before interest and tax
158,770182,575
Retail sales
Retail sales are recognised when the customer receives the goods which typically occurs at the point of sale for instore sales or where the goods are purchased online when
the goods have been delivered to the customer. Revenue from the sale of goods is recognised at the fair value of the consideration received or receivable, net of returns,
discounts and excluding Goods and Services Tax (GST).
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
2.4 Balance sheet information
Total AssetsTotal Liabilities
Note2022 2021 2022 2021
$ 000 $ 000 $ 000 $ 000
The Warehouse segment
590,929444,892 377,399 353,595
Noel Leeming
191,511 188,324 139,218 149,077
Torpedo7
76,57850,380 22,76920,761
TheMarket.com
21,540 21,288 11,1379,009
Other Group operations
88,335 85,062 1,069 2,023
Operating assets/liabilities
968,893789,946 551,592534,465
Unallocated assets/liabilities
Cash and borrowings
24,999 160,526 66,150 -
Derivative financial instruments
12.2 29,491 10,147 668 4,353
Right of use assets/Lease liabilities
673,278 736,524 820,840 892,191
Intangible goodwill and brands
9.2 72,956 72,956 - -
Taxation assets/liabilities
4.2, 4.3 90,73295,958 - 10,878
Total Group
1,860,3491,866,057 1,439,2501,441,887
2.5 Adjustment for NZ IFRS 16 (Leases)
Note2022 2021
$ 000 $ 000
Pre NZ IFRS 16 rent expense
133,931 134,946
Right of use asset amortisation
10.1 (94,614)(94,092)
Lease impairments
- (1,582)
Gain on lease terminations
2,681 1,237
Impact on operating profit
2.1 41,998 40,509
Lease liability interest
3.5 (36,683)(38,497)
Impact on net profit before tax (excluding unusual items)
5,315 2,012

The Warehouse Group Integrated Annual Report 202270Financial Statements71The Warehouse Group Integrated Annual Report 20227071
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
The following table details the major deferred income tax assets and (liabilities) recognised by the Group and the movements during the current and prior year.
4.3 Balance sheet - deferred taxation asset
NoteInventoryLeases
Property, Plant
Equipment
and Software
Employee
ProvisionsDerivativesOtherTotal
For the 52 week period ended 31 July 2022
$ 000$ 000$ 000$ 000$ 000$ 000$ 000
Opening balance
12,941 41,648 18,328 17,483 (2,400)7,958 95,958
Charged/(credited) to the income statement
4.1 (2,241)(1,499)4,263(1,750)- (3,012)(4,239)
Net charged to other comprehensive income
- - - - (2,484)(8)(2,492)
Closing balance
10,700 40,149 22,59115,733 (4,884)4,938 89,227
For the 52 week period ended 1 August 2021
Opening balance
15,713 42,211 16,077 19,348 6,744 8,306 108,399
Charged/(credited) to the income statement
4.1 (2,772)(563)2,251 (1,865)(1,681)(345)(4,975)
Net charged to other comprehensive income
- - - - (7,463)(3)(7,466)
Closing balance
12,941 41,648 18,328 17,483 (2,400)7,958 95,958
4.2 Balance sheet - current taxation asset/(liability)
Note2022 2021
$ 000 $ 000
Opening balance
(10,878)(10,982)
Foreign exchange movement
-(2)
Current year income tax payable
4.1 (30,612)(32,272)
Net taxation paid
42,514 32,132
Supplementary dividend tax credit
481 246
Closing balance
1,505(10,878)
The following table details the movement in income tax receivable/(payable) during the current and prior year.
4.0 TAXATION
A reconciliation between the tax expense recognised in the income statement and tax expense calculated per the statutory income tax rate is detailed below.

Income taxation
The income tax expense for the period is the tax payable on the current year’s taxable income based on the income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on
those tax rates which are enacted or substantively enacted. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to
measure the deferred tax asset or liability.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in
subsidiaries and associates where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse
in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised in equity are similarly recognised in equity.
Goods and services tax (“GST”)
The income statement and statement of cash flows have been prepared so that all components are stated exclusive of GST. All items in the balance sheet are stated net of GST
with the exception of receivables and payables which include GST invoiced.
4.1 Taxation - income statement
Note2022 2021
$ 000$ 000
Profit before tax
121,939145,117
Taxation calculated at 28%
34,14340,633
Adjusted for the tax effect of:
Non deductible expenditure
725503
Income tax relating to prior year property disposals
- (3,295)
Income tax over provided in prior year
(17)(594)
Income tax expense
34,85137,247
Income tax expense comprises:
Current year income tax payable
4.2 30,61232,272
Deferred taxation
4.3 4,2394,975
Income tax expense
34,85137,247
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
3.0 INCOME AND EXPENSES
3.1 Other income
Note2022 2021
$ 000$ 000
COVID-19 landlord rent relief
10.2 1,775 -
Tenancy rents received
2,165 2,251
Other
3,743 4,799
Other income
7,683 7,050
3.2 Employee expense
2022 2021
$ 000 $ 000
Wages and salaries
566,174542,841
Directors' fees
884 787
Performance based compensation
8,303 38,377
Equity settled share based payments expense
- 93
Employee expense
575,361582,098
3.3 Other operating expenses
2022 2021
$ 000 $ 000
Other operating expenses include:
Provision for bad and doubtful debts expense
2,467 767
Loss on disposal of plant and equipment
1,128 637
Asset impairments
- 1,582
Donations
106 499
Net foreign currency exchange (gain)/loss
(67)105
3.4 Auditors’ fees
2022 2021
$ 000 $ 000
Auditing the Group financial statements
711 697
Reviewing the half year financial statements
112 97
Other non-audit or review services
- Agreed upon procedures
24 14
- Taxation services
10 10
- Other services
71 58
Total fees paid to PricewaterhouseCoopers
928 876
3.5 Net interest expense
Note2022 2021
$ 000 $ 000
Interest on deposits and use of money interest received
(592)(1,048)
Interest on borrowings
7409
Interest on leases
10.2 36,683 38,497
Net interest expense from continuing operations
36,83137,458
Audit Fees - Corporate Governance
In accordance with the Group’s policies regarding audit governance and independence other non-audit services are approved by the Group’s Audit and Risk Committee. The Group’s
policy permits the audit firm to provide non-audit services that are not considered to be in conflict with the preservation of the independence of the auditor, subject to Audit and Risk
Committee approval.

Financial StatementsThe Warehouse Group Integrated Annual Report 202272737273
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
7.0 DIVIDENDS
7.1 Dividends paid
2022 2021 2022 2021
$ 000$ 000CENTS PER SHARECENTS PER SHARE
Prior year final dividend
60,698 - 17.5 -
Interim dividend
34,684 45,090 10.0 13.0
Special dividend
- 17,342 - 5.0
Total dividends paid
95,382 62,432 27.5 18.0
7.2 Dividend policy reconciliation
Note2022 2021 2022 2021
$ 000$ 000CENTS PER SHARECENTS PER SHARE
Special dividend
- 17,342 - 5.0
Interim dividend
34,684 45,090 10.0 13.0
Final dividend (declared after balance date)
34,684 60,698 10.0 17.5
Total dividends declared in respect of the current financial year
69,368 123,130 20.0 35.5
Group adjusted net profit
5.0 85,484167,175
Pay-out ratio (%)
81.1%73.7%
7.3 Imputation credit account
2022 2021
$ 000$ 000
Imputation credits at balance date available for future distribution
132,796142,492
Dividend policy
Following two years of disruption caused by the COVID-19 pandemic the Group has returned to its pre-COVID-19 pattern of declaring two dividends annually, the first in
respect of the half year (interim dividend) and second in respect of the full year result (final dividend). At the discretion of the Board and subject to trading performance, market
conditions and liquidity requirements, the Group’s dividend policy is to distribute at least 70% of the Group’s full year adjusted net profit.
In accordance with this policy the Board declared a fully imputed final dividend of 10.0 cents per ordinary share on 27 September 2022 to be paid on 2 December 2022 to all
shareholders on the Group’s share register at the close of business on 17 November 2022. As an additional consideration this year the Board also considered the impact of
changing the accounting policy regarding cloud computing (refer note 17.0) as part of its process to determine the amount of the final dividend. The dividend pay-out ratio
adjusted to exclude the impact of the change in accounting policy is 71.6% (2021: 70.2%).
The above amounts represent the balance of the Group’s imputation credit account at balance date, adjusted for imputation credits that will arise from the payment of the
amount of the remaining current year provision for income taxation.
Notes to the Financial Statements - Financial Performance
For the 52 week period ended 31 July 2022
5.0 ADJUSTED NET PROFIT
6.0 EARNINGS PER SHARE
Adjusted net profit reconciliation
Note20222021
$ 000$ 000
Adjusted net profit
85,484167,175
Add back: Unusual items
Restructuring costs
- (16,065)
Interest rate hedge derivatives write-off
12.5 - (3,340)
COVID-19 wage subsidy
- (67,550)
Unusual items before taxation and NZ IFRS 16 adjustments
- (86,955)
Adjustments for NZ IFRS 16
2.5 5,315 2,012
Income tax on the unusual items above
(1,488)23,784
Income tax relating to prior year property disposals
- 3,295
Unusual items after taxation and NZ IFRS 16 adjustments
3,827 (57,864)
Net profit from continuing operations attributable to shareholders of the parent
89,311109,311
Earnings per share calculation
Note2022 2021
Net profit attributable to shareholders of the parent ($000s)
89,311109,311
Adjusted net profit ($000s)
5.0 85,484167,175
Basic
Weighted average number of ordinary shares (net of treasury shares) on issue (000s)
345,354345,301
Basic earnings per share (cents)
25.931.7
Adjusted basic earnings per share (cents)
24.848.4
The Group did not classify any items as unusual during the year.
2021 COVID-19 wage subsidy
In December 2020 the Group voluntarily repaid the Government COVID-19 wage subsidy it received in March 2020. The Group classified both the receipt and offsetting
repayment of the COVID-19 wage subsidy which spanned two different financial years as unusual items.
2021 Restructuring costs
The restructuring costs relate to professional fees and redundancy costs incurred as part of the Group’s transition to an Agile way of working completed last year.
The Group has not calculated a dilutive earnings per share as it has no dilutive potential ordinary shares which entitle a holder to ordinary shares in the Group. Minority
shareholders in TheMarket.com hold put options (refer note 11.5) which are not dilutive but entitle the minority shareholders to receive ordinary shares in the Group if they
exercise the options based on a settlement value equivalent to the fair value of the minority shareholding sold.
Certain transactions can make the comparison of profits between years difficult. The Group uses adjusted net profit as a key indicator of performance and considers it a better
measure of underlying business performance. Adjusted net profit makes allowance for the after tax effect of unusual items which are not directly connected with the Group’s
normal trading activities. The Group defines unusual items as any gains or losses from property disposals, goodwill and brand impairment, costs relating to business acquisitions
or disposals, ineffective hedge derivatives and costs connected with restructuring the Group. Following the adoption of NZ IFRS 16 the non-cash impact relating to the lease
accounting standard are also excluded from adjusted net profit.
Earnings per share (EPS) is the amount of post tax profit attributable to each share. Basic EPS is calculated by dividing net profit attributable to shareholders by the
weighted average number of ordinary shares (net of treasury shares) outstanding during the year, adjusted basic EPS are similarly calculated using adjusted net profit as
the numerator.

Financial StatementsThe Warehouse Group Integrated Annual Report 20227475The Warehouse Group Integrated Annual Report 20227475
Notes to the Financial Statements - Operating Assets and Liabilities
For the 52 week period ended 31 July 2022
9.0 NON CURRENT ASSETS
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the obligation.
Employee entitlements
(i) Annual leave and sick leave
Liabilities for annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’
services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and measured at the rates paid or payable.
(ii) Performance based compensation
The Group recognises a liability and expense for incentives payable to employees where either a contractual or constructive obligation arises to pay an employee based on
achieving an agreed level of individual and company performance.
(iii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on New Zealand government bonds with terms to maturity that match,
as closely as possible, the estimated future cash outflows.
Make good provision
The Group has an obligation to restore certain leasehold sites to their original condition when the lease expires. This provision represents the present value of the expected
future make good commitment. Amounts charged to the provision represent both make good costs incurred and costs incurred which mitigate the final liability prior to the
lease expiry.
Sales return
The Group provides various guarantees and warranties to replace, repair or refund customers for faulty or defective products sold. This provision represents the estimated
sales return obligation at balance date based on historical sale return rates.
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. The cost of purchased property, plant and equipment is the value of
the consideration given to acquire the assets inclusive of directly attributable costs incurred to bring the assets to the location and condition necessary for their intended use.
Property, plant and equipment are depreciated on a straight-line basis to allocate the cost, less any residual value, over their useful life. The estimated useful lives of property,
plant and equipment are as follows:
• Freehold land indefinite • Freehold buildings 50 - 100 years
• Plant and equipment 3 - 15 years • Work in progress not depreciated
The Group annually reviews the carrying amounts of property, plant and equipment for impairment. An asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount. In assessing whether an asset is impaired, reference is made to individual store
profitability and any other known events or circumstances that may indicate that the carrying amount of an asset may be impaired.
Gains and losses on disposals of assets are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. Costs
incurred on repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
8.4 Provisions
CurrentNon currentTotal
2022 2021 20222021 2022 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Employee entitlements
43,30567,603 14,32315,667 57,62883,270
Make good provision
1,6601,471 6,8427,704 8,5029,175
Sales return provision
4,8665,441 -- 4,8665,441
Provisions
49,83174,515 21,16523,371 70,99697,886
9.1 Property, plant and equipment
Land and BuildingsPlant and EquipmentWork in ProgressTotal
Note20222021202220212022202120222021
$ 000$ 000$ 000$ 000$ 000$ 000$ 000$ 000
Cost
93,527 93,527 657,409 638,450 11,389 10,785 762,325 742,762
Accumulated depreciation
(15, 293)(14,193)(552,413)(531,438)- - (567,706)(545,6 31)
Opening carrying amount
78,234 79,334 104,996 107,012 11,389 10,785 194,619 197,131
Additions
2.3 571 - 32,668 39,111 35,937 604 69,176 39,715
Disposals
- - (1,236)(831)- - (1,236)(831)
Depreciation
2.2 (816)(1,100)(37,388)(40,296)- - (38,204)(41,396)
Closing carrying amount
77,989 78,234 99,040 104,996 47,326 11,389 224,355 194,619
Cost
94,098 93,527 678,732 657,409 47,326 11,389 820,156 762,325
Accumulated depreciation
(16,109)(15,293)(579,692)(552,413)- - (595,801)(567,706)
Closing carrying amount
77,989 78,234 99,040 104,996 47,326 11,389 224,355 194,619
Notes to the Financial Statements - Operating Assets and Liabilities
For the 52 week period ended 31 July 2022
8.0 WORKING CAPITAL
8.1 Inventory
2022 2021
$ 000$ 000
Finished goods
485,486 413,352
Inventory provisions
(17,244)(21,966)
Retail stock
468,242 391,386
Goods in transit from overseas
94,07165,765
Inventory
562,313 457,151
8.2 Trade and other receivables
Note2022 2021
$ 000 $ 000
Trade receivables
35,526 36,193
Prepayments
34,25617,204
Rebate accruals and other debtors
29,735 30,556
Trade and other receivables
99,51783,953
Less non current prepayments
17.0(11,664)(4,408)
Current trade and other receivables
87,853 79,545
8.3 Trade and other payables
2022 2021
$ 000 $ 000
Local trade creditors and accruals
280,208266,486
Foreign currency trade creditors
113,72293,524
Goods in transit creditors
32,68417,883
Capital expenditure creditors
2,9953,018
Goods and services tax
7,47510,155
Reward schemes, Lay-bys, Christmas Club deposits and gift vouchers
22,69222,036
Payroll accruals
20,82023,477
Trade and other payables
480,596436,579
Inventories are stated at the lower of cost and net realisable value. Cost is calculated using a weighted average method and includes expenditure incurred to purchase the
inventory and transport it to its current location. Net realisable value is the estimated selling price of the inventory in the ordinary course of business less costs necessary to
make the sale. The cost of inventories consumed during the period are recognised as an expense and included in cost of goods sold in the income statement.
Trade receivables arise from sales made to customers on credit or through the collection of rebates from suppliers not otherwise deducted from suppliers’ payable accounts.
Trade receivables are non-interest bearing and are generally on 30 to 60 day terms. Trade receivables are recognised based on the value of the invoice sent to the customer
and adjusted for expected credit losses to provide for future unrecovered debts. The expected collectability of trade and other receivables is reviewed on an ongoing basis.
Trade payables represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are normally unsecured and
local creditors typically settled within 60 days and foreign creditors up to 120 days of recognition. Due to the short-term nature of these payables, their carrying value is assumed
to approximate their fair value.
Significant judgements and estimates
Assessing provisions for inventory obsolescence, net realisable value and shrinkage involves making estimates and judgements in relation to future selling prices and expected
shrinkage rates between the most recent store stock counts and balance date. Shrinkage is a reduction in inventory due to shoplifting, employee theft, record keeping errors and
supplier fraud. The Group considers a wide range of factors including historical data, current trends and product information from buyers as part of the process to determine the
appropriate value of these provisions.
Goods in transit from overseas
Goods in transit from overseas are recognised when title to the goods is passed to the Group. Title to the goods is passed when valid documents (which usually include a ‘bill of
lading’) are received, and terms, as set out in a supplier’s letter of credit or in the supplier’s terms of trade, are met.

The Warehouse Group Integrated Annual Report 202276Financial Statements77The Warehouse Group Integrated Annual Report 20227677
Notes to the Financial Statements - Operating Assets and Liabilities
For the 52 week period ended 31 July 2022
COVID-19 landlord rent relief
The Group negotiated rent reductions with its landlords as a result of the temporary store closures caused by the COVID-19 pandemic during the year. The Group applied the
NZ IFRS 16 (Leases) practical expedient introduced in May 2020 to account for the landlord rent concessions which meant the rent reductions were accounted for as negative
variable lease payments.
Significant judgements and estimates
To quantify lease liabilities and ‘right of use’ carrying values requires the Group to use judgement to assess the appropriate lease term and estimates to determine the incremental
borrowing rate applied to calculate these amounts. These judgements and estimates can significantly impact the carrying value of both the right of use asset and lease liabilities
recognised in the balance sheet and corresponding expenses recorded in the income statement.
The Group uses the judgement of experts within its property department to assess the lease term at the inception of a lease and to reassess a lease term when a significant event or
significant change in circumstances within the control of the Group affects the prospect that a right of renewal contained in a lease will be exercised.
The Group engages an independent valuation expert to establish the incremental borrowing rates applied to new and modified leases during the year. The average incremental
borrowing rate used to calculate the value of lease liabilities at balance date was 4.48% (2021: 4.32%).
The Group leases various warehouses, retail stores, equipment and vehicles. Property leases represent around 99% of the carrying value of the Group’s ‘right of use assets’. The
property leases are negotiated on an individual basis, typically for an initial period of 6 to 10 years and usually include extension options, but may also contain a wide variety of other
terms and conditions. Extension options provide the Group with operational flexibility in terms of managing the Group’s retail intensity within different catchment areas. The majority
of extension and termination options may only be exercised by the Group and not by the landlord.
10.0 LEASE LIABILITIES AND RIGHT OF USE ASSETS
10.1 Right of use assets
CostAccumulated DepreciationCarrying Amount
Note2022 2021 2022 2021 2022 2021
For the 52 week period ended 31 July 2022
$ 000$ 000$ 000$ 000$ 000$ 000
Opening balance
1,505,137 1,498,007 (768,613)(723,832)736,524 774,175
Foreign exchange movement
95 - (22)- 73 -
Additions
34,092 55,494 - - 34,092 55,494
Depreciation
2.2 - - (94,614)(94,092)(94,614)(94,092)
Reassessment of lease terms
10.2 (1,075)5,271 - - (1,075)5,271
Lease impairments
- - - (1,582)- (1,582)
Lease surrenders and terminations
(35,599)(53,635)33,877 50,893 (1,722)(2,742)
Closing balance
1,502,650 1,505,137 (829,372)(768,613)673,278 736,524
10.3 Lease liability maturity analysis
Gross Lease PaymentsInterestCarrying Amount
2022 2021 2022 2021 2022 2021
As at 1 August 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Within one year
129,927 133,653 (34,078)(35,841)95,849 97,812
One to two years
120,767 125,275 (30,241)(32,157)90,526 93,118
Two to five years
311,475 330,591 (70,202)(75,942)241,273 254,649
Beyond five years
456,230 524,906 (63,038)(78,294)393,192 446,612
Lease liability
1,018,399 1,114,425 (197,559)(222,234)820,840 892,191
Current lease liability
95,849 97,812
Non-current lease liability
724,991 794,379
Lease liability
820,840 892,191
10.2 Lease liabilities
Note
2022 2021
For the 52 week period ended 31 July 2022
$ 000$ 000
Opening balance
892,191 934,788
Foreign exchange movement
75 -
Additions
34,092 55,494
Interest for the period
3.5 36,683 38,497
Reassessment of lease terms
10.1 (1,075)5,271
COVID-19 landlord rent relief3.1
(1,775)-
Lease repayments
(134,947)(137,880)
Lease surrenders and terminations
(4,404)(3,979)
Closing balance
820,840 892,191
A ‘lease liability’ and a corresponding ‘right of use’ asset is recognised when the Group commences a lease with a term exceeding 12 months and has sufficient value to not
be characterised as a low value lease. The initial lease liability and corresponding ‘right of use’ asset represents the present value of future lease payments discounted using
the Group’s incremental borrowing rate over the lease term including any contractual lease extension options considered reasonably certain to be exercised. The future lease
payments adjust for contractual fixed rate lease payment adjustments but no adjustment is made for inflation-indexed lease payment increases.
Lease payments are allocated between the lease liability and the finance cost. The finance cost is charged to the income statement over the lease period to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The right of use asset is depreciated over the shorter of the asset’s useful life and
the lease term on a straight-line basis.
Notes to the Financial Statements - Operating Assets and Liabilities
For the 52 week period ended 31 July 2022
9.2 Intangible assets
GoodwillBrand NamesComputer SoftwareTotal
Note2022202120222021202220212022 2021
$ 000$ 000$ 000$ 000$ 000$ 000$ 000$ 000
Cost
94,380 94,380 23,523 23,523 75, 371 51,932 193,274 169,835
Impairment and accumulated amortisation
(36,924)(36,924)(8,023)(8,023)(21,148)(13,792)(66,095)(58,739)
Opening carrying amount
57,456 57,456 15,500 15,500 54,223 38,140 127,179 111,096
Additions
2.3- - - - 38,27023,93938,27023,939
Disposals
- - - - (320)- (320)-
Amortisation
2.2 - - - - (13,304)(7,856)(13,304)(7,856)
Closing carrying amount
57,456 57,456 15,500 15,500 79,86954,223 151,825127,179
Cost
94,380 94,380 23,523 23,523 113,35475,371 231,257193,274
Impairment and accumulated amortisation
(36,924)(36,924)(8,023)(8,023)(34,485)(21,148)(79,432)(66,095)
Closing carrying amount
57,456 57,456 15,500 15,500 78,86954,223 151,825127,179
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration paid above the fair value of the net identifiable assets, liabilities and contingent
liabilities acquired.
Brand names
Brand names acquired in a business combination are recognised at fair value at the acquisition date. Brand names are considered to have indefinite useful lives as the Group has
rights to use these names in perpetuity.
Impairment of goodwill and brand names
Assets that have an indefinite useful life are reviewed annually for impairment or whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Computer software
Internal and external costs directly incurred in the purchase or development of software controlled by the Group are recognised as intangible assets, including subsequent
improvements, when it is probable that they will generate a future economic benefit. Computer software is amortised using the straight-line method over periods ranging from
two to ten years.
Cloud computing arrangements (refer note 1.5)
Cloud computing arrangements provide the Group with the right to access a supplier’s cloud based software for a specified contract period. If the Group does not control the
cloud based software, the related development costs (external and internal) are recognised as either:
(a) an expense when they are incurred for internal costs and the costs of an integrator not related to the software provider, or
(b) as a prepayment and then expensed over the term of the cloud computing arrangement for the costs of the software provider or its subcontractor.
Brand and goodwill impairment testing
The Group performs an annual impairment test of its brand and goodwill intangible assets which involves comparing the recoverable amount of the assets to the carrying values.
The recoverable amounts are calculated using the ‘fair value less costs to sell’ method. The discounted cash flow valuation method is based on projections regarding future
operating performance. The Group considers a wide range of factors including the Group’s financial budgets, strategic plans, external benchmarks and historical performance
to formulate the future cash flow projections. The Group also engages external advisors to determine appropriate discount rates and long-term growth rates, integral to the
valuations. The valuations are then scaled down to align with the average values assessed by a selection of the Group’s external equity research analysts.
The Group’s brand and goodwill assets are allocated to cash generating units and form the basis for impairment testing. Cash generating units represent the lowest level
within the Group at which the assets are monitored for internal management purposes. Details of the carrying amounts of brand and goodwill assets and the allocation to cash
generating units along with the key assumptions used in the impairment tests to extrapolate cash flows beyond the 5 year projection period are set out in the table below.
Operating margin represents earnings before interest, taxation, unusual items and the impact of NZ IFRS 16. The Warehouse segment also includes the Warehouse Stationery
business, the operating margin assumptions for this business division are different from those of the primary business at 11.9% (2021: 11.3%). The annual impairment testing for both
Noel Leeming and The Warehouse cash generating units indicated ample headroom and that the carrying amounts of the attributed brand and goodwill assets were not impaired.
Impairment testing
Noel LeemingThe Warehouse
2022 202120222021
$ 000 $ 000 $ 000 $ 000
Goodwill
31,776 31,776 25,680 25,680
Brand names
15,500 15,500 - -
Closing carrying amount
47,276 47,276 25,680 25,680
Key assumptions
Operating margin (%)
5.3 5.0 5.7 8.0
Terminal growth rate (%)
2.0 1.5 2.0 1.5
Pre-tax discount rate (%)
14.2 14.3 13.1 13.2
Post-tax discount rate (%)
10.2 10.3 9.4 9.5

The Warehouse Group Integrated Annual Report 202278Financial Statements79The Warehouse Group Integrated Annual Report 20227879
Notes to the Financial Statements - Financing and Capital Structure
For the 52 week period ended 31 July 2022
11.0 EQUITY
11.2 Bank facilities
2022
2021
$ 000 $ 000
Cash and cash equivalents
24,999 160,526
Borrowings
(66,150)-
Net debt
(41,151)160,526
Committed bank credit facilities
420,000 330,000
Liquidity buffer
378,849 490,526
11.3 Contributed equity
Contributed EquityOrdinary Shares
2022
2021 2022
2021
$ 000 $ 000 000000
Share capital
365,517 365,517 346,843 346,843
Treasury shares
(5,282)(5,282)(1,489)(1,489)
Contributed equity
360,235 360,235 345,354 345,354
Treasury shares
Treasury SharesOrdinary Shares
2022
2021 2022
2021
$ 000 $ 000 000000
Opening balance
5,282 5,456 1,489 1,557
Ordinary shares used to settle share rights plan obligations
- (174)- (68)
Closing balance
5,282 5,282 1,489 1,489
Notes to the Financial Statements - Financing and Capital Structure
For the 52 week period ended 31 July 2022
11.1 Capital management
Capital is defined by the Group to be the total equity as shown in the balance sheet. The Group’s capital management objectives are to safeguard the Group’s ability to continue
as a going concern, to provide an appropriate rate of return to shareholders, optimise the Group’s cost of capital and maintain a liquidity buffer (refer note 11.2).
The Group reviews its capital structure annually, unless there is a material change requiring an earlier response and may make adjustments by means including changes to the
Group’s dividend pay-out ratio, issue of new shares, debt issuance, sale of assets or a combination of these.
Externally imposed capital requirements
The Group has a negative pledge arrangement with its funding providers that requires the parent and its guaranteeing Group companies to comply with certain quarterly debt
ratios and restrictive covenants. The calculation of these ratios is adjusted to exclude the impact of the NZ IFRS 16 lease accounting standard. The two principal covenants are:
1) The gearing ratio will not exceed 60% during the first quarter ending October or exceed 50% in each of the remaining quarters of the year, and
2) Interest cover will not be less than 2 times operating profit.
The Group was in compliance with all aspects of the negative pledge covenants throughout the current and previous financial year.
Ordinary shares are classified as equity. Incremental costs, directly attributable to the issue of new shares, are shown in equity as a deduction from the proceeds of the
share issue.
Where the Group purchases its own equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs is deducted
from equity attributable to the shareholders until the shares are cancelled or reissued. Where such shares are reissued, any consideration received, net of any directly
attributable incremental transaction costs, is included in equity attributable to shareholders.
Ordinary shares on issue are fully paid and carry one vote per share and participate equally in dividends, other distributions from equity and any surplus on a winding up of the
Group. The Group retains its own ordinary shares which are used for employee share based payment arrangements. Voting rights attached to the shares are held by the trustees
of the employee share plans, and dividends paid on the shares are retained by the trustee for the benefit of the Group.
The Group adopted a new liquidity policy last year to provide balance sheet resilience in response to the COVID-19 pandemic. The new policy, which remains unchanged, is to maintain
a liquidity buffer of between $350 million to $450 million. The policy permits the liquidity buffer to exceed the policy range where it is caused by temporary cash flow fluctuations.
Sustainability Linked Loans
During the year the Group restructured $140 million of its committed bank credit facilities to be Sustainability Linked Loans (SLLs). The facility fee pricing for the SLLs are linked
to the achievement of mutually agreed sustainability targets that span a 4 year period and meet the requirements of the Loan Market Association’s Sustainability Linked Loan
Principles (2021). There are five sustainability targets and the facility pricing can be reduced by a maximum of 8 basis points if all the sustainability targets are achieved and
increased by the same if the targets are not met.
11.4 Reserves
2022 2021
$ 000 $ 000
Cash flow hedge reserve
12,560 6,171
Foreign currency translation reserve
179 (115)
Reserves
12,739 6,056
Cash flow hedge reserve
This reserve records the portion of the gain or loss on a hedging derivative in a cash flow hedge that is determined to be an effective hedge. The cumulative deferred gain or
loss on the hedge is recognised in the income statement when the hedged transaction impacts the income statement, or depending on the nature of the hedge, is included
in a non-financial hedged item when the hedged event occurs. (Refer to the consolidated statement of changes in equity and accounting policies detailed in note 12.2.)
Foreign currency translation
Exchange differences arising on translation of the Group’s subsidiaries in India and China are recognised in other comprehensive income and accumulated in a separate
reserve within equity. The cumulative amount is reclassified to the income statement when the net investment is sold.
11.5 Minority interest
2022 2021
$ 000 $ 000
Opening balance
(2,694)(794)
Net loss attributable to minority interest
(2,223)(1,441)
Share rights charged to the income statement
- 93
Share rights vested
- (1,697)
Minority put options exercised
4,2271,145
Dividends paid to minority shareholders
(125)-
Closing balance
(815)(2,694)
Minority interest reserve
A minority interest is an ownership position in a Group subsidiary where the shareholder owns less than 50% of outstanding shares and has no control over decisions.
Minority interests are measured based on the minority shareholder’s proportionate share of the net asset value of the subsidiary and also includes the accumulated value of
unvested share rights in the minority subsidiary which have been granted and recognised as an employee share based payment expense.
The fair value of share rights granted in a subsidiary are measured at grant date and recognised as an employee share based payment expense over the vesting period with
a corresponding increase in the minority interest reserve. Upon vesting of these share rights, the balance of the minority interest reserve relating to the share rights is offset
against the proportionate share of the net asset value of the subsidiary acquired by the minority shareholder, with any difference in the value attributed to settling the
commitment transferred to retained earnings.
At balance date the Group’s minority shareholders held a 50% (2021: 50%) shareholding in ChocolateWorks and a 3% (2021: 11.5%) shareholding in TheMarket.com.
TheMarket.com share rights plan
Share rights were granted (June 2019) as a performance incentive to key executives in TheMarket.com (an online marketplace), collectively representing a 16% interest in
TheMarket.com. The share rights (160,000 rights) were divided into three equal tranches and were fully vested between June 2019 and March 2021. At the time of vesting the
shares were independently valued at $5.00 (June 2019), $6.37 (March 2020) and $11.53 (March 2021).
The share rights plan includes a put option which, if exercised, allows the participants to put their vested shares back to the Group until March 2024. When a put option is
exercised, the Group is required to purchase the TheMarket.com shares based on the fair value of the shares at that time. During the year participants exercised put options
representing 85,480 shares (2021: 44,520 shares) which were settled for a combined consideration of $1,715,933 (2021: $441,070).
Net debt in the table above excludes lease liabilities recognised under NZ IFRS 16 (refer note 10.2).

The Warehouse Group Integrated Annual Report 202280Financial Statements818081
Notes to the Financial Statements - Financial Risk Management
For the 52 week period ended 31 July 2022
12.1 Financial risk factors
The Group’s activities expose it to various financial risks, including liquidity risk, credit risk and market risk. The Group’s overall risk management programme focuses on the
uncertainty of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
The Group enters into forward currency contracts to manage the currency fluctuation risks arising from the Group’s overseas purchases.
Risk management is carried out by a central treasury department (Group Treasury) under policies approved by the Board of Directors. Group Treasury identifies, evaluates and
hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering
specific areas, such as mitigating foreign exchange, interest rate and credit risks, use of derivative financial instruments and investing excess cash.
Significant judgements and estimates
Valuation
The Group’s derivatives are not traded in an active market which means quoted prices are not available to determine the fair value. To determine the fair value the Group uses
valuation techniques which rely on observable market data. For accounting purposes (NZ IFRS 13) these valuations are deemed to be Level 2 fair value measurements as they are
not derived from a quoted price in an active market but rather, a valuation technique that relies on other observable market data.
Hedge effectiveness
When calculating the hedge effectiveness of the Group’s currency derivatives the Group is required to forecast the next 18 months overseas purchases to test if the hedged
transactions are still highly probable to occur. The method of testing adopted is based on matching the critical terms of the hedged transaction to those of the derivative.
The results of this testing demonstrated an expectation of high hedge effectiveness.
Notes to the Financial Statements - Financial Risk Management
For the 52 week period ended 31 July 2022
12.0 FINANCIAL RISK MANAGEMENT
12.2 Derivative financial instruments
CurrentNon currentTotal
2022 2021 2022 2021 2022 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Forward exchange contract assets
29,491 8,837 - 1,310 29,491 10,147
Forward exchange contract liabilities
(668)(4,353)- - (668)(4,353)
Derivative financial instruments
28,823 4,484 - 1,310 28,823 5,794
Classified as:
Cash flow hedges
17,444 7,262 - 1,310 17,444 8,572
Fair value hedges
11,379 (2,778)- - 11,379 (2,778)
Derivative financial instruments
28,823 4,484 - 1,310 28,823 5,794
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value. The method of recognising
the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. For the purposes of hedge
accounting, hedges are classified as:
• Cash flow hedges when they hedge an exposure to a highly probable forecast transaction; or
• Fair value hedges when they hedge the exposure to changes in fair value of a recognised asset or liability.
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy
for undertaking the hedge transactions. An assessment, both at hedge inception and on an ongoing basis, is also documented as to whether the derivatives that are used in
hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.
Cash flow hedge
The Group applies cash flow hedge accounting to manage the currency risk associated with purchasing inventory in foreign currencies. The effective portion of changes in the
fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity in the cash flow hedge reserve. The gain or loss relating to the ineffective
portion is recognised immediately in the income statement.
Amounts accumulated in equity are recycled in the income statement in the periods when the hedged item will affect profit or loss. However, when the forecast transaction that
is hedged results in the recognition of a non-financial asset (for example, inventory), the gains and losses previously deferred in equity are transferred from equity and included in
the measurement of the initial cost or carrying amount of the asset or liability.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at
that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Fair value hedge
The Group applies fair value hedge accounting for hedging to manage the currency risk associated with foreign currency trade creditors. Changes in the fair value of derivatives
that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are
attributed to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, or the hedge is not fully effective, then the hedge or portion of the hedge which is
not effective is recognised immediately in the income statement as a foreign exchange gain or loss.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are
recognised immediately in the income statement.
+ 10 percent- 10 percent
Foreign currency sensitivity table
NoteAmountProfit Equity Profit Equity
At 31 July 2022
$ 000$ 000$ 000$ 000$ 000
Foreign currency trade creditors
8.3 (113,722)7,443 7,443 (9,098)(9,098)
Derivative financial instruments
Currency forward contracts - cash flow hedges
12.2 17,444 - (20,033)- 24,488
Currency forward contracts - fair value hedges
12.2 11,379 (7,413)(7,413)9,061 9,061
Total increase/(decrease)
30 (20,003)(37)24,451
At 1 August 2021
Foreign currency trade creditors
8.3 (93,524)6,121 6,121 (7,482)(7,482)
Derivative financial instruments
Currency forward contracts - cash flow hedges
12.2 8,572 - (21,011)- 25,688
Currency forward contracts - fair value hedges
12.2 (2,778)(6,119)(6,119)7,480 7,480
Total increase/(decrease)
2 (21,009)(2)25,686
12.3 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through committed credit facilities to meet financial obligations when they are
due and being able to close out market positions if necessary. The Group monitors rolling forecasts of the Group’s liquidity position based on expected cash flows to ensure a liquidity
buffer is maintained in accordance with policy limits approved by the Board. The Group maintains funding flexibility by maintaining availability using committed credit lines. The
Group’s liquidity policy and committed credit facilities at balance date are detailed in note 11.1.
The table below details the Group’s derivatives and other financial liabilities (excluding lease liabilities - refer note 10.3)
.
12.4 Credit risk
Credit risk arises from the financial assets of the Group which are exposed to potential counterparty default, with a maximum exposure equal to the carrying amount of these assets.
In the normal course of business the Group incurs credit risk from trade and other receivables, derivatives and transactions with financial institutions.
The Group places its cash and short-term investments and derivatives with high credit quality financial institutions approved by the Board and in accordance with specified treasury
policy limits. The Group’s treasury policy requires bank counterparties to have a minimum Standard & Poor’s credit rating of at least A (2021: A).
The Group controls its credit risk from trade and other receivables by the application of credit approval, limits and monitoring procedures. Receivable balances are monitored
on an ongoing basis to ensure the Group’s bad debt exposure is not significant. Concentrations of credit risk exist when changes in economic, industry or geographical factors
similarly affect the group of counterparties whose aggregate credit exposure is significant in relation to the Group’s total credit exposure. As the Group transacts with a diversity of
counterparties it does not have any significant exposure to any individual customers, industry or economic sector.
12.5 Market risk
Foreign exchange risk
The Group purchases inventory directly from overseas suppliers, primarily priced in US dollars. In order to protect against exchange rate movements and manage the inventory
costing process, the Group enters into forward exchange contracts to purchase foreign currencies. These contracts hedge highly probable forecast purchases and are timed to
mature when the payments are scheduled to be settled. Management work to a Board-approved treasury policy to manage this foreign exchange risk. A review of the hedge policy
was performed towards the end of last year and as a result of this review some policy limits were amended in June 2021. The amended policy parameters for hedging forecast
currency exposures are:
• to hedge 80% to 100% of US dollar commitments expected in the next 0 to 4 months (previously 40% to 100% for the next 0 to 6 months)
• to hedge 50% to 90% of US dollar commitments expected in the next 5 to 12 months (previously 0% to 85% for the next 7 to 12 months)
• where exposures to other currencies arise, the Group hedges these risks once a firm commitment is in place
• specific approval is required to hedge foreign currency commitments extending beyond a 12 —month time horizon.
Currency position at balance date
Carrying ValueNotional Amount (NZD)Average Exchange Rate12 Month Hedge Level
2022 2021 2022 2021 2022 2021 2022 2021
$ 000$ 000$ 000$ 000CENTSCENTS%%
Currency forward contracts
Buy US dollars/Sell New Zealand dollars
28,823 5,794 397,213 410,086 0.6742 0.7049 68.9 70.9
The spot rate used to determine the mark-to-market carrying value of the US dollar forward contracts at balance date was $0.6290 (2021: $0.6966).
The following sensitivity table, based on currency contracts and foreign currency trade creditors in existence at balance date, shows the positive/(negative) impact of reasonably
possible exchange rate movements on after tax profit and equity, with all other variables held constant.
Liabilities/(assets)
0 - 6 Months7 - 12 Months13 - 18 MonthsTotal
Note2022 2021 2022 2021 2022 2021 2022 2021
$ 000$ 000$ 000$ 000$ 000$ 000$ 000$ 000
Trade and other payables
8.3 480,596436,579 - - - - 480,596436,579
Derivatives - gross settled
(currency forward contracts)
- outflow
12.5 223,430 228,007 173,783 154,501 - 27,578 397,213 410,086
- inflow
(244,543)(226,957)(181,254)(159,357)- (28,713)(425,797)(415,027)
Financial liabilities and derivatives
459,483437,629 (7,471)(4,856)- (1,135)452,012431,638

The Warehouse Group Integrated Annual Report 202282Financial Statements83The Warehouse Group Integrated Annual Report 20228283
Notes to the Financial Statements - Other Disclosures
For the 52 week period ended 31 July 2022
Notes to the Financial Statements - Other Disclosures
For the 52 week period ended 31 July 2022
13.0 KEY MANAGEMENT17.0 CLOUD COMPUTING ARRANGEMENTS (continued)
14.0 COMMITMENTS
15.0 CONTINGENT LIABILITIES
16.0 RELATED PARTIES
17.0 CLOUD COMPUTING ARRANGEMENTS
Key management includes the Directors of the Company and those employees deemed to have disclosure obligations under subpart 6 of the Financial Markets Conduct Act
2013, being the Group Chief Executive Officer and his 9 (2021: 9) direct reports.
Compensation made to Directors and other members of key management of the Group is set out in the two tables below:
The impact on the primary financial statements of the change to the Group’s accounting policy in relation to cloud computing arrangements is detailed below:
During the period the Group has not entered into any material contracts involving related parties or Directors’ interests which are not disclosed. No amounts owed by related
parties have been written off or forgiven during the period.
Significant judgements and estimates
The Group carried out a detailed assessment to quantify the impact of changing its accounting policy in relation to cloud computing arrangements. The review process was
complex and interpreting the IFRIC agenda decision required the Group to make judgements, estimates and assumptions to evaluate and reassess the nature of the software costs
incurred and to understand the Group’s contractual rights in relation to customisation and configuration expenditure. The review of software assets to identify and assess the
Group’s control over its cloud computing arrangements was jointly performed by the Group’s Finance and Information Technology teams.
The Group considered several factors to conclude on the appropriate accounting treatment. These factors included the nature and key terms of licence arrangements, ownership
of intellectual property rights, ability to restrict access to systems, ability to remove software applications from their current cloud environment and run them on alternative
environments, ability to determine when upgrades are applied and whether associated implementation activities were distinct from the software hosting arrangement. The Group
concluded that, with the exception of certain middleware integration software, it did not have control over all aspects of many of the Group’s cloud-based software solutions
including its Salesforce, Manhattan and Oracle systems and that the associated previously capitalised implementation costs should be expensed.
The Group is part way through a substantial multi-year programme to replace its core Information and Technology infrastructure systems moving away from being predominantly
‘on-premise’ to a cloud-based architecture.
In April 2021, the International Financial Reporting Interpretation Committee (IFRIC) issued an agenda decision clarifying the accounting treatment for software implementation
costs in cloud computing arrangements. IFRIC concluded that costs incurred to configure or customise software in cloud computing arrangements can be recognised as
intangible assets only if they create an intangible asset that the Group controls. Implementation costs that cannot be capitalised as intangible assets are expensed as incurred,
unless they are paid to the providers of the cloud-based software as part of the wider hosting arrangement, in which case these upfront costs are recorded as a prepayment and
amortised over the expected term of the arrangement.
The Group previously capitalised costs incurred configuring and customising software in cloud computing arrangements as intangible software assets, as the Group considered
that it would benefit from these costs over the expected term of the arrangement. As a consequence of the IFRIC decision, the Group changed its accounting policy relating to
implementation costs for cloud computing arrangements resulting in a retrospective restatement of the Group’s financial statements. The result was a reduction in the carrying
value of intangible software assets by $63.6 million (2021: $39.8 million), and a corresponding reduction in the amortisation expense of $9.3 million (2021: $6.0 million) in the income
statement. The decrease in the amortisation expense was offset by the recognition of an expense for the configuration and customisation costs that were previously capitalised,
resulting in a net reduction in pre-tax profit of $15.9 million (2021: $11.6 million).
J W M Journee and R J Tindall each received fees of $13,750 (2021: $13,750) and D R Hamilton a fee of $7,563 in their capacity as directors of a Group subsidiary company
(TheMarket.Com Limited).
Capital expenditure contracted for at balance date, but not recognised as liabilities, is set out below:
Directors’ fees
2022 2021
$ 000$ 000
J Withers (Chair)
177 166
A J Balfour
112 98
W K Easton (resigned May 2022)
75 79
D R Hamilton
111 96
J W M Journee
98 86
J M Raue
116 101
R E Taulelei (appointed February 2021)
104 38
R J Tindall (appointed November 2020)
91 56
K R Smith (retired November 2020)
- 39
Sir Stephen Tindall (retired November 2020)
- 28
Total
884 787
2022 2021
$ 000$ 000
Standby letter of credit
17,500 -
Bank guarantees provided to landlords and the New Zealand Exchange Limited
456 456
Total contingent liabilities
17,956 456
Capital commitments
2022 2021
$ 000 $ 000
Within one year
17,628 16,858
Key management
Note2022 2021
$ 000$ 000
Base salary
7,157 7,271
Annual performance based compensation
- 3,858
Three year performance based compensation
1,629 3,325
Share-based compensation
11.5 - 35
Termination benefits
846 322
Total
9,632 14,811
52 week period ended 31 July 202252 week period ended 1 August 2021
Consolidated Income Statement
Before Policy Change in Previously Change in Restated
NoteChange Policy 2022 Reported Policy 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Employee expense
(56 4,791)(10,570)(575, 361)(573,734)(8,364)(582,089)
Depreciation and amortisation expense
2.2 (155,436)9,314 (146,122)(149,303)5,959(143,344)
Other operating expenses
( 27 7,176 )(14,636)(291,812)(244,255)(9,179)(253,434)
Operating profit
174,662 (15, 892)158,7702 81,114 (11, 5 8 4)269,530
Income tax expense
4.1 (39, 301) 4,450(34,851)(4 0,491)3,244 ( 37, 247 )
Net profit for the period
98,530 (11, 4 4 2)87,088116 , 210 (8,340)107, 8 70
Net profit for the period attribtable to shareholders
100,753 (11, 4 4 2)8 9, 311117, 6 51 (8,340)10 9, 311
Basic earnings per share
6.0 29.2 cents (3.3)cents25.9 cents 34.1 cents (2.4)cents31.7 cents
As at 31 July 2022 As at 1 August 2021
Consolidated Balance Sheet
Before Policy Change in Previously Change in Restated
NoteChange Policy 2022 Reported Policy 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Trade and other receivables - current
8.2 86,928 925 87,853 79,277 268 79,545
Trade and other receivables - non-current
8.2 - 11,66411,664- 4,408 4,408
Intangible assets
9.2 215,442 (63,617)151,825166,991 (39,812)127,179
Deferred taxation
4.3 74,939 14,28889,22786,120 9,838 95,958
Total assets
1,897,089 (36,740)1,860,3491,891,355 (25,298)1,866,057
Net assets
457,839 (36,740)421,099449,468 (25,298)424,170
Retained earnings
85,680 (36,740)48,94085,871 (25,298)60,573
Total equity
457,839 (36,740)421,099449,468 (25,298)424,170
52 week period ended 31 July 202252 week period ended 1 August 2021
Consolidated Statement of Cash Flows
Before Policy Change in Previously Change in Restated
Change Policy 2022 Reported Policy 2021
$ 000$ 000$ 000$ 000$ 000$ 000
Payments to suppliers and employees
(3,086,587)(33,120)(3,119,707)(3,040,261)(21,302)(3,061,563)
Net cash flows from operating activities
138,543(33,120)105,423247,261 (21,302)225,959
Purchase of property, plant and equipment and computer software
(140,589)33,120(107,469)(83,180)21,302(61,878)
Net cash flows from investing activities
(146,349)33,120(113,229)(83,229)21,302(61,927)
As at 2 August 2020
Consolidated Statement of Cash Flows
Previously Change in Restated
Reported Policy 2020
$ 000$ 000$ 000
Trade and other receivables - current
84,263 84 84,347
Trade and other receivables - non-current
- 834 834
Intangible assets
135,566 (24,470)111,096
Deferred taxation
101,805 6,594 108,399
Total assets
1,854,861 (16,958)1,837,903
Net assets
376,339 (16,958)359,381
Retained earnings
30,259 (16,958)13,301
Total equity
376,339 (16,958)359,381

The Warehouse Group Integrated Annual Report 202284Financial Statements85The Warehouse Group Integrated Annual Report 20228485
Our opinion
In our opinion, the accompanying financial statements of The Warehouse Group Limited (the Company), including its subsidiaries (the Group), present fairly,
in all material respects, the financial position of the Group as at 31 July 2022, its financial performance and its cash flows for the 52 week period then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group’s financial statements comprise:
●• the consolidated balance sheet as at 31 July 2022;
●●• the consolidated income statement for the 52 week period then ended;
●●• the consolidated statement of comprehensive income for the 52 week period then ended;
●●• the consolidated statement of changes in equity for the 52 week period then ended;
●●• the consolidated statement of cash flows for the 52 week period then ended; and
●●• the notes to the financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including
International Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the International Code of
Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In addition to our role as auditor, our firm carries out other services for the Group in the areas of executive remuneration benchmarking, access to general
training materials, agreed upon procedures at the Annual Shareholders’ Meeting, the calculations of the Negative Pledge Agreement, revenue and total assets
confirmation and a tax audit for an overseas subsidiary. In addition, certain partners and employees of our firm may deal with the Group on normal terms within
the ordinary course of trading activities of the Group. The provision of these other services and relationships have not impaired our independence as auditor of
the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current 52 week
period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Independent Auditor’s Report
To the shareholders of The Warehouse Group Limited
PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8801, pwc.co.nz
Independent Auditor’s Report
To the shareholders of The Warehouse Group Limited
Description of the key audit matterHow our audit addressed the key audit matter
Inventory costing and valuation
The carrying value of the Group’s inventory as at 31 July 2022 was
$562.3 million (2021: $457.2 million) with inventory provisions of $17.2
million (2021: $22.0 million).
To calculate the cost of inventory, the Group uses a weighted average
method and also includes expenditure incurred to purchase the
inventory and transport it to its current location. The Group measures
inventory at the lower of cost and net realisable value by deducting
a provision from the cost of inventory that is determined based on
various factors including historical data, current trends and product
information from buyers.
Determining the appropriate level of provisions involves judgement
including management’s expectations of future sales levels and
estimation of selling price adjustments. Due to the judgements
involved in estimating the inventory provisions and the significance of
the inventory balance, this is an area of focus for the audit.
Note 8.1 of the financial statements describe the accounting policy on
inventory and the judgements and estimates applied by management
to determine the inventory provision.
We performed the following procedures to audit the cost of inventory, on
a sample basis:
●●●• tested the accuracy of the weighted average cost calculation by
reperforming the calculation;
●●●• checked the cost of inventory to supplier and freight invoices and
supplier rebate contracts; and
●●●• attended cycle counts to observe that finished goods have been
counted and any stock variances have been appropriately recorded.
●●●On inventory provisions, we performed the following:
●●●• updated our understanding of inventory processes and assessed the
design and implementation of relevant inventory controls, especially
controls over the cyclical count process;
●●●• observed a sample of management’s stocktake procedures at selected
locations to confirm existence of inventory and that aged and clearance
items were identified and accounted for;
●●●• held discussions with management to understand and corroborate the
assumptions used to estimate inventory provisions;
●●●• reviewed management’s retrospective review of inventory provisions in
the prior period versus inventory write offs in the current period;
●●●• tested the net realisable value of finished goods on a sample basis by
comparing its cost with the most recent retail price less cost to sell and
that finished goods were valued at the lower of cost or net realisable
value;
●●●• reviewed the inventory aging schedules to check whether provisions
were recorded for aged stock in accordance with Group policy on a
sample basis;
●●●• performed a reasonableness test of the shrinkage provision by
comparing the amount against the actual shrinkage for the period;
●●●• compared all inventory provisions for each inventory category as a
percentage of the gross carrying amount versus the prior 52 week period
and understood the rationale for material or unexpected changes; and
●●●• reviewed the financial statement disclosures against the accounting
standard requirements.

The Warehouse Group Integrated Annual Report 202286Financial Statements87The Warehouse Group Integrated Annual Report 20228687
Overall group materiality: $7.1 million, which represents approximately 5% of a three-period
weighted average profit before tax from continuing operations adjusted for restructuring costs,
the COVID-19 wage subsidy repayment, brand impairments and gains on property disposals
applicable to the previous two periods. A higher weighting was applied to the current period.
We chose this approach as it reduces the impact of one-off results which do not reflect the long
term performance of the business.
Full scope audits were performed for two of the five trading entities within the Group based on
their financial significance and representing 93% of the Group’s retail sales for the period.
Specified audit procedures and analytical review procedures were performed on the remaining
entities and on consolidation entries.
As reported above, we have one key audit matter, being Inventory costing and valuation.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered
where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering
future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the financial
statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the financial
statements as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of our audit, the nature, timing and
extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into
account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
We identified subsidiaries that, due to their financially significant contribution to the Group’s overall results, required a full scope audit. In addition, we also
performed specific audit procedures on certain balances and transactions of other subsidiaries. Audits of each subsidiary are performed at a materiality level
calculated with reference to a proportion of the Group materiality relative to the financial significance of the business concerned.
Independent Auditor’s Report
To the shareholders of The Warehouse Group Limited
Materiality
Group Scoping
Key Audit
Matters
Our audit approach
Overview
Other information
The Directors are responsible for the other information. The other information comprises the information included in the Annual report, but does not include the
financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS
and IFRS, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with ISAs (NZ), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
●• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
●●• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Group’s internal control.
●●• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
●●• Conclude on the appropriateness of the use of the going concern basis of accounting by those charged with governance and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention to our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going concern.
●●• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
●●• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on
the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for the audit opinion.
Independent Auditor’s Report
To the shareholders of The Warehouse Group Limited

88The Warehouse Group Integrated Annual Report 202288Financial Statements89The Warehouse Group Integrated Annual Report 20228889
Independent Auditor’s Report
To the shareholders of The Warehouse Group Limited
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during the audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken
to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor’s report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters which we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Lisa Crooke.
For and on behalf of:
Chartered Accountants Auckland
27 September 2022

v
At The Warehouse Group we are committed to
the highest standards of corporate governance.
We believe strong corporate governance is the foundation
of sustainable business creating long-term value for our
shareholders.
This governance report gives an overview of the policies and
processes that are in place throughout The Warehouse Group
Limited (the Company), which follow best-practice standards
of corporate governance.
In this section we introduce you to our Leadership Squad and
our Board of Directors, we share our Governance Statement,
Remuneration Policy, Directors’ and other governance
disclosures, information for shareholders, sustainability index
and a directory to help you contact us.
We support and comply with the NZX Corporate Governance
Code (the NZX Code). This statement generally follows the
structure of the NZX Code and addresses its recommendations.
As at the date of the publication of this Annual Report, the
Company considers its governance practices are compliant with
the NZX Code. This governance statement was approved by
the Board on 27 September 2022 and is current as at that date.
The Company’s constitution, the Board and committee charters,
codes and policies referred to in this statement can be viewed at
www.thewarehousegroup.co.nz/about-us/corporate-governance
GOVERNANCE REPORT
91The Warehouse Group Integrated Annual Report 202290Governance Report

Sarah Kearney Chief Digital Officer
Sarah is responsible for the development of
our strategic eCommerce and digital customer
experience across our The Warehouse, Warehouse
Stationery and Noel Leeming brands, as well as
sharing her passion for customer engagement
through innovation, transformation and data with
The Warehouse Group team.
Ian Carter Chief Store Operations Officer
Ian is responsible for developing and implementing
store operation strategies for The Warehouse,
Warehouse Stationery and Noel Leeming that deliver
great in-store experiences for our customers and team
while maximising store sales and profitability.
Edwin Gear Chief Information Officer
Edwin is responsible for leading the information
services team, ensuring systems security and business
continuity while leading technology transformation
into the future.
Richard Parker Chief Human Resources Officer
Richard is responsible for attracting and retaining
world-class retail talent and for ensuring that the
Group is the best place to work in New Zealand for
all our team members.
Justus Wilde CEO TheMarket.com
Justus is the CEO of our digital marketplace platform
and is responsible for leading and building this
platform as the digital future of shopping.
Simon West CEO Torpedo7/Executive Chair
TheMarket.com
Simon is the CEO of our outdoor adventure brand
Torpedo7 and is responsible for profitably building
the business post its turnaround stage, along with
supporting TheMarket.com team to achieve its
aspirations in the digital future of shopping.
Our Leadership Squad (LS) works
individually and collectively to ensure
our business is positioned for continued
success and is able to take advantage
of future opportunities, while mitigating
challenges as they arise.
Our Leadership Squad is a group of highly qualified
and diversely experienced individuals who leverage a
“collective leadership model” through co-sponsorship
of business areas. This model focuses on working
together to lead the business forward in an ever-
changing environment, while enabling team members
to perform at their best.
Nick Grayston Chief Executive Officer
Nick’s role as leader of the business means he is
focused on building a sustainable and profitable
organisation, driving operational turn around and
leading a high-performing team, all by putting our
customers at the heart of everything that we do. Under
agile, his role has changed from traditional command
and control to servant leadership: setting the vision
and then enabling execution by removing blockages.
Jonathan Oram Chief Financial Officer
Jonathan is responsible for processes that drive the
allocation of resources, performance and reporting
across the Group. His responsibilities include business
planning, finance functions, legal and risk, property
and the Group B2B operations.
Tania Benyon Chief Product Officer
Tania is responsible for sourcing and building the
best assortment of products for customers across
our The Warehouse, Warehouse Stationery and
Noel Leeming brands, and ensuring these are
delivered in the most efficient and timely fashion.
This includes our end-to-end supply chain
transformation and network redesign.
Jonathan Waecker Chief Customer and Sales Officer
Jonathan is responsible for maximising customer
experiences and sales within The Warehouse,
Warehouse Stationery and Noel Leeming brands.
In addition, he is responsible for attracting, engaging
and retaining customers through marketing,
communications, customer experience and
eCommerce activities, leading brand strategy and
driving customer engagement across the Group’s
portfolio of brands.
LEADERSHIP SQUAD
Left to right:
Rear: Edwin Gear, Jonathan Oram, Nick
Grayston, Richard Parker, Ian Carter
Front: Simon West, Sarah Kearney, Tania
Benyon, Jonathan Waecker
Absent: Justus Wilde
The Warehouse Group Integrated Annual Report 202292Leadership Squad9393

OUR BOARD
Robert Tindall BA, BSc
Non-Executive Director
Robbie was elected as a Director of the
Group in November 2020, having previously
been Sir Stephen Tindall’s alternate since
2017. He studied Arts and Science at the
University of Auckland before spending
eight years at The Warehouse in various
merchandise and buying roles.
Since 2011 Robbie has been an Investment
Director at K One W One Limited, a family
investment company, where his exposure
to some of New Zealand’s most exciting
technology and innovation companies sees
him uniquely placed in understanding a
broad range of technology trends as they
come to market. Robbie is also a Trustee of
The Tindall Foundation.
INTERNAL
• Disclosure Committee
• Corporate Governance and Nomination
Committee
• People and Remuneration Committee
• Health, Safety and Wellbeing
Committee
• TheMarket.com Board
OTHER DIRECTORSHIPS
• K One W One Limited
• The Tindall Foundation
• Foundation Services Limited
John Journee BCom, CFinstD, MAICD
Independent Non-Executive Director
John has had an extensive retail career,
which includes executive experience
across sectors that span general
merchandise, fashion apparel, FMCG,
consumer electronics, telecommunications,
hospitality and electricity retailing.
Over his 30-year career he has spent
15 years with The Warehouse Group,
starting as a joint-venture partner in 1990
and progressing through senior roles
in operations, marketing, merchandise,
international sourcing and business
development. John has also had CEO
roles with Noel Leeming and foodservice
distributor Southern Hospitality.
INTERNAL
• Audit and Risk Committee
• Health, Safety and Wellbeing
Committee
• Environmental and Social Sustainability
Committee
• TheMarket.com Limited Board
OTHER DIRECTORSHIPS
• Vanishing Point Limited
• Farmlands Society
• Colonial Motor Company Limited
• Quantiful Limited (Member,
Advisory Board)
• West Auckland Trust Services Limited
Julia Raue CMinstD, GAICD
Independent Non-Executive Director
Julia has extensive digital, customer, data,
strategy and business transformation
experience across a number of sectors
including airline, telecommunications,
local government and not-for-profit in
New Zealand and Australia. She has a
strong track record of delivering award-
winning innovative customer-facing
products and services.
Julia has been a professional director for
seven years, holding governance roles
across a range of sectors including media,
broadcasting, energy, retail, insurance,
technology and healthcare. She has
previously held Director positions at
Television New Zealand Limited and
Z Energy Limited. Prior to governance,
Julia was the Chief Information Officer
of Air New Zealand, and in 2009 she was
awarded the New Zealand CIO of the
Year award.
INTERNAL
• Health, Safety and Wellbeing
Committee (Chair)
• Audit and Risk Committee
• Environmental and Social Sustainability
Committee
OTHER DIRECTORSHIPS
• Jade Software Corporation Limited
• Southern Cross Medical Care Society
• Southern Cross Healthcare Limited
• Trustee - Southern Cross Health Trust
• Trustee – Global Women NZ
Joan Withers MBA, CFinstD
Chair & Independent Non-Executive
Director
Joan has been a professional director for
more than 20 years and spent over 25 years
working in the media industry, previously
holding CEO positions at The Radio
Network and Fairfax Media. In addition
to her Chair role with The Warehouse
Group, Joan is also a director of ANZ
Bank NZ Limited, Origin Energy Limited
and Sky Network Television Limited.
Joan has previously held Chair positions
at Television New Zealand Limited and
Auckland International Airport.
Joan is a Trustee of the Sweet Louise
Foundation and is Chair of a steering
committee working to increase the
percentage of South Auckland Māori and
Pacific Island students taking up roles in
the health sector. She is also cofounder and
a director of On Being Bold Ltd, a group of
senior businesswomen working to help NZ
women fulfil their career potential in tandem
with enjoying a fulfilling personal life.
INTERNAL
• Corporate Governance and Nomination
Committee (Chair)
• Audit and Risk Committee
• Disclosure Committee
• People and Remuneration Committee
• Health, Safety and Wellbeing Committee
• Environmental and Social Sustainability
Committee
OTHER DIRECTORSHIPS
• Sky Network Television Limited
• ANZ Bank NZ Limited
• Sweet Louise Foundation
• Origin Energy Limited
• On Being Bold Limited
Antony (Tony) Balfour BCom
Independent Non-Executive Director
Tony has extensive global retail and
eCommerce experience with a strong track
record in a diverse range of industries.
Most recently, he was General Manager
(Markets) for Icebreaker Clothing with
responsibility for the company’s global
business units in New Zealand, Australia,
USA, Canada, Europe and Asia as well as
the development of the company’s rapidly
growing eCommerce and retail business
units. His prior experience includes senior
roles in Monster.com and Seek.com, both
successful online recruitment sites, and
nine years in global senior roles with Nike,
including General Manager of Asia Pacific.
Tony’s governance career has included
Independent Director roles at Silver
Fern Farms, Methven Limited, Les Mills
International and RealNZ.
INTERNAL
• People and Remuneration Committee
(Chair)
• Corporate Governance and
Nomination Committee
• Health, Safety and Wellbeing
Committee
• Environmental and Social
Sustainability Committee
OTHER DIRECTORSHIPS
• Les Mills International Limited
• RealNZ Limited
• BLIS Technologies Limited
• Pioneer Energy Limited
Dean Hamilton BCA
Independent Non-Executive Director
Dean has significant CEO and financial
markets experience. Most recently he
was CEO of Silver Fern Farms Limited
where he successfully led the business
through a period of significant change and
improvement in financial performance, staff
and supplier engagement, sustainability
and consumer trust in brand.
His prior experience includes 12 years
at global investment bank Deutsche
Bank, working in both Australia and New
Zealand, where he advised a wide range of
companies on mergers and acquisitions,
capital management, corporate
restructuring and capital raising.
INTERNAL
• Audit and Risk Committee (Chair)
• Health, Safety and Wellbeing
Committee
• Disclosure Committee (Chair)
• Corporate Governance and
Nomination Committee
OTHER DIRECTORSHIPS
• Fulton Hogan Limited (Chair)
• Auckland International Airport Limited
• Tappenden Holdings Limited
Rachel Taulelei LLB
Ngāti Raukawa ki te Tonga, Ngāti Rārua
Independent Non-Executive Director
Rachel is a prominent business leader and
a strong advocate for the Māori economy,
values-based business models, and our
food and beverage industry.
Her commitment to kaitiakitanga has
been evident throughout her career, as
founder of sustainable seafood company
Yellow Brick Road in 2006, to her time as
CEO of Māori-owned food and beverage
company Kono, and now in her current role
as cofounder of business design and brand
strategy firm Oho.
Rachel has held a number of governance
roles, with a particular expertise in primary
industries. She presently chairs Moana NZ
and the Wellington Regional Stadium Trust,
serves as a director on the board of Sealord
and ANZCO Foods Ltd, is a member of the
APEC Business Advisory Council and acts
as an advisor to venture capital firm Movac.
INTERNAL
• Environmental and Social
Sustainability Committee (Chair)
• People and Remuneration Committee
• Health, Safety and Wellbeing
Committee
OTHER DIRECTORSHIPS
• New Zealand APEC Business Advisory
Council (Chair)
• Wellington Regional Stadium Trust
(Chair)
• Moana NZ (Chair)
• Sealord Group Limited
• ANZCO Foods Ltd
• Advisor - Movac
• Limited Partner, Movac Fund 5 LP
Caroline Rainsford BCom
Independent Non-Executive Director
Appointed: August 2022
Caroline is currently the Country Director
for Google NZ, where she is responsible for
driving the overall revenue and business
strategy for New Zealand, and in partnering
with government, policy teams and New
Zealand business leaders she is focused on
helping New Zealand businesses grow and
transform in the digital age.
Prior to joining Google in 2017, Caroline
was the Marketing and Product Director
for the Latitude NZ (previously GE Capital)
business as well as the Brand Director for
the Australian and New Zealand region. Her
earlier career included roles with Philips
Royal Electronics in the Middle East, Turkey
and Africa.
Caroline holds a Bachelor of Commerce
(Hons) from the University of Auckland.
INTERNAL
• Health, Safety and Wellbeing
Committee
The Warehouse Group Integrated Annual Report 20229495Our Board

Relevant Board Skills to execute Group Strategy
Joan
Withers
John
Journee
Robbie
Tindall
Julia
Raue
Tony
Balfour
Dean
Hamilton
Rachel
Taulelei
Caroline
Rainsford
Industry specific
Operational experience in the retail industry
Brand, marketing and customer experience
Integrated retail experience
Digital and Technology experience
Direct sourcing experience
Logistics experience
Specific to Group strategy
Development of a high performance culture
Senior leadership of change management at scale
Transformation and business disruption experience
Innovation and entrepreneurism
Government relations
Union relations
Environment and Corporate Social Responsibility experience
Subject matter expertise
Development and execution of business strategy
Governance experience
Large company leadership experience
Finance / Accounting expertise
Audit committee / risk management experience
Regulatory knowledge and experience
Health and safety experience
HR / Learning and development experience
Financial markets experience
Community and Iwi relationships
Shareholder and investor relations experience
Primary skills
Secondary skills
BOARD SKILLS MATRIX
Governance plays a critical role in business. All business stakeholders deserve the highest standards of corporate governance from their boards.
Our Board skills and diversity self-assessment found that the Board holds many strong attributes, including highly relevant capability in governance processes with a diverse
mix of skills among the Directors. There is a high concentration of skills in areas that will drive the Group to achieve our strategy through great execution, brand marketing
and customer experience.
The Board
The Board comprises eight directors: Joan Withers (Chair), Dean Hamilton, John
Journee, Tony Balfour, Robbie Tindall, Julia Raue, Rachel Taulelei and Caroline
Rainsford. Director profiles are available on pages 94 and 95.
Chair
Joan Withers is Chair of The Warehouse Group Board, first appointed in 2016,
and is an independent, non-executive director whose responsibilities include:
• providing leadership to the Board and to the Company;
• ensuring the efficient organisation and conduct of the Board;
• monitoring Board performance annually;
• facilitating Board discussions to ensure core issues facing the Company are
addressed;
• briefing all Directors in relation to issues arising at Board meetings;
• facilitating the effective contribution and ongoing development of all Directors;
• promoting consultative and respectful relations between Board members and
between the Board and Management; and
• chairing Board and shareholder meetings.
The Warehouse Group Board Charter states the Company’s Chair must not be the
same person who is the Company’s Chief Executive Officer.
Director Appointments
Procedures for the appointment and removal of Directors are governed by the
Company’s Constitution and the NZX Listing Rules. The Corporate Governance
and Nominations Committee is delegated with the responsibility of identifying and
nominating, for the approval of the Board, candidates to fill Board vacancies as and
when they arise. In doing so the Committee will seek to identify the necessary and
desirable competencies that will ensure that any candidate it puts forward will enable
the Board to:
• fulfil its responsibilities;
• represent a variety of skills, expertise, experience (including commercial and/or
industry experience and diversity of backgrounds and thought); and
• competently address accounting, finance and legal matters.
The terms and conditions of appointment are set out in a letter of appointment which
details the Director’s duties, term of appointment (subject to shareholder approval),
expectations of the role and remuneration. A copy of the standard letter is available
in the Corporate Governance section of the website.
The Company indemnifies and provides insurance to Directors in accordance with the
Companies Act 1993 for certain claims which may be brought against them as Directors.
Director Induction and Development
When appointed to the Board, all new Directors undergo a detailed induction
programme to familiarise them with the Company’s businesses and strategy.
Ongoing training includes briefings by senior management and guest speakers on
relevant industry and competitive issues, occasional overseas study tours and site
visits. Directors are actively encouraged to attend.
Director Independence and Conflicts
The Board’s standards for determining the independence of a Director, including the
requirements of the NZX Listing Rules, are set out in full in the Board Charter.
Under these criteria, the Board has a majority of independent Directors and the roles of
Chair and Group Chief Executive Officer (CEO) are not exercised by the same person.
Of the Board’s eight Directors. Joan Withers (Chair), Dean Hamilton, Antony (Tony)
Balfour, John Journee, Julia Raue, Rachel Taulelei and Caroline Rainsford are
considered to be independent non-executive Directors. Robert (Robbie) Tindall is not
deemed to be independent by virtue of associated shareholdings in the Company.
The Board assesses the independence of directors on their appointment and at least
annually thereafter.
The Board is conscious of its obligations to ensure that Directors avoid conflicts of
interest between their duty to the Company and their own interests. Where conflicts of
interest do exist at law then the Director must disclose their interest. Directors and team
members are required to minimise any potential conflicts in line with the Company’s
Code of Ethics.
“To ensure an effective Board, there should be a balance of independence, skills,
knowledge, experience and perspectives.”
Responsibilities of the Board
The central role of the Board is to set the strategic direction, to select and appoint
the Company’s Group Chief Executive Officer (CEO) and to oversee the Company’s
management and business activities with the primary objective to create and continue
to build sustainable value for shareholders. This requires consideration of and regular
engagement with all the stakeholders that are critical to our success (shareholders,
employees, customers, suppliers, communities and society at large) as determined by
the Company and the Board using their business judgement. We fulfil this purpose in
a way that is consistent with the Board and Management’s fiduciary duties and the
stewardship of the Company on behalf of shareholders.
The Board Charter, last approved in September 2022, is available in the Corporate
Governance section of the Company’s website, and sets out how the Board will achieve
its purpose. The updated Charter includes a new expectation that Directors hold shares
in the Company. The number of shares to be held will be as specified by the Board from
time to time, and the shareholding may be acquired over a five-year period.
The Charter is reviewed at least every two years. The Board’s key responsibilities
contained in the Charter are covered in the below table.
Strategy and
Planning
• set strategic direction and appropriate operating frameworks;
• monitor Management’s performance within those frameworks;
People Resources• ensure that the Board is and remains appropriately skilled to
meet the changing needs of the Company;
• ensure there are adequate resources available to meet the
Company’s objectives;
• appoint and remove the Group CEO and oversee succession
plans for the Leadership Squad;
• set criteria for, and evaluate the performance of, the Group
CEO and approve their remuneration;
annually review, approve and adopt the Diversity and Inclusion
policy and diversity objectives, and measure achievement
against the objectives;
Financial
Performance
and Risk
• approve and monitor financial reporting and capital
management including the payment of dividends;
• monitor the financial solvency of the Company;
• subject to shareholder approval being granted, approve the
appointment and retention of the external auditor;
• ensure that effective risk management procedures are in place
and are being used;
Health and Safety• ensure, so far as reasonably practical, a safe and healthy
working environment is provided and maintained for all
employees, customers, contractors and visitors;
Ethical Behaviour
and Corporate
Governance
• promote and authorise ethical and responsible decision-
making by the Company;
• ensure the Company has appropriate corporate governance
structures in place including standards of ethical behaviour;
• approve timely and balanced communication to shareholders.
Management and administration of the Company is undertaken by the Group CEO,
who is assisted by the Leadership Squad, in accordance with the strategy, plans
and delegations approved by the Board. The Board has implemented appropriate
procedures to enable management to undertake its delegated duties and for
performance to be assessed. More information can be found in the Remuneration
section on page 102-103.
The Warehouse Group Integrated Annual Report 202296The Warehouse Group Integrated Annual Report 202296Board Skills Matrix97
BOARD COMPOSITION AND PERFORMANCE
BOARD COMPOSITION AND PERFORMANCE

Name of DirectorOriginally AppointedLast Reappointed/Elected
Joan Withers23 September 201622 November 2019
Julia Raue23 September 201622 November 2019
Antony (Tony) Balfour15 October 201226 November 2021
John Journee17 October 201326 November 2021
Dean Hamilton20 April 202027 November 2020
Robbie Tindall
27 November 202027 November 202027 November 202027 November 2020
Rachel Taulelei12 February 2021
26 November 202126 November 2021
Caroline Rainsford30 August 2022
Future Directors Programme
Continuing the Company’s commitment to supporting the next generation of
governance talent in New Zealand as part of the Future Directors initiative administered
by the New Zealand Institute of Directors, the Board appointed Caroline Rainsford as
our Future Director in August 2021. She has subsequently been appointed as a Director
of the Company, effective August 2022.
Board Structure, Skills and Composition
The Board comprises Directors with a mix of qualifications, skills and experience
appropriate to the Company’s operations and strategic directions. The qualifications
and experience of individual Directors are detailed on pages 94 and 95.
A comprehensive matrix of Director skills is on the preceding page. In line with Board
succession planning, Board composition has been refreshed in recent years.
Board Evaluation
The Chair, with the assistance of appropriate external advisors, regularly assesses
the performance of individual Directors whilst Directors also assess the collective
performance of the Board and the performance of the Chair. A formal evaluation is
regularly conducted with assistance from an outside facilitator.
Board Tenure
The Constitution provides that the minimum size of the Board shall not at any time
be less than five and the Board has fixed the maximum number of directors to be 10.
Each year, any Director who is required by the NZX Listing Rules or the Company’s
Constitution to retire will retire from office and may offer themselves for re-election at
the Annual Shareholders’ Meeting.
The Board does not believe that any Director has served on the Board for a period
which could, or could reasonably be perceived to, materially interfere with the Director’s
ability to act in the best interests of the Company. The Board considers that Directors
retain independence of character and judgement regardless of length of service.
COMMITTEEROLES AND RESPONSIBILITIESMEMBERSHIPMEETINGS
People and
Remuneration
Committee
Review and make recommendations in relation to the human
resources strategy, the Company’s remuneration policies and
practices and the remuneration and performance of the Group
Chief Executive Officer.
Comprised of a majority of non-executive, independent directors.
Current members:
• Tony Balfour (Chair)
• Joan Withers
• Robbie Tindall
• Rachel Taulelei
At least twice a year.
Corporate
Governance and
Nominations
Committee
Ensure a high level of corporate governance through continuous
monitoring of international corporate governance best practice as
promulgated by the relevant authoritative bodies. Ensure that the
Board is populated with an appropriate mix of skills and experience
who collectively provide the diversity of thought and judgement
required.
Comprised of a majority of independent directors.
Current members:
• Joan Withers (Chair)
• Tony Balfour
• Dean Hamilton
• Robbie Tindall
At least once a year.
Disclosure
Committee
Support the Company in meeting its disclosure obligations as set
out in the NZX Listing Rules, the Companies Act 1993 and any other
applicable regulations by overseeing the Company’s compliance
with this policy.
Comprised of the Board Chair, Chair of the Audit and Risk
Committee, independent directors, Group Chief Executive Officer,
Chief Financial Officer and Disclosure Officer.
Current members:
• Dean Hamilton (Chair)
• Joan Withers
• Robbie Tindall
• Group CEO, CFO and Company Secretary
Held as required.
Audit and Risk
Committee
Assist the Board to fulfil its risk and audit responsibilities.Comprised of at least three independent directors. The Chair will
be independent and may not be the Chair of the Company.
Current members:
• Dean Hamilton (Chair)
• Joan Withers
• John Journee
• Julia Raue
At least three times
each year.
Health, Safety
and Wellbeing
Committee
Assist the Board to govern health, safety and wellbeing.Comprised of all Directors.
Chair:
• Julia Raue
At the discretion of
the Committee Chair.
Environmental
and Social
Sustainability
Committee
Assist the Board to govern the Company's environmental, social
and sustainability responsibilities.
Comprised of a majority of independent directors and the Group
Chief Executive Officer.
• Rachel Taulelei (Chair)
• Tony Balfour
• Julia Raue
• John Journee
• Joan Withers
• Group CEO
At least four times
each year.
CORPORATE GOVERNANCECORPORATE GOVERNANCE
BOARD COMMITTEES
“The Board should use committees where this will enhance its effectiveness in key areas,
while still retaining Board responsibility.”
The Board has established committees that focus on particular areas of the Board’s
responsibilities and together ensure the efficient performance of the Board, and the
achievement of Corporate Governance outcomes. The committees report to the full
Board on all material matters and issues requiring Board decisions. From time to time,
the Board may create ad hoc committees to examine specific issues on its behalf. The
current committee structure is set out in the table below.
The Warehouse Group Integrated Annual Report 202298Corporate Governance99
Tenure
0-3 years
4-6 years
7+ years
Board
Audit
and Risk
Committee
People and
Remuneration
Committee
Corporate
Governance and
Nomination
Committee
Health, Safety
and Wellbeing
Committee
Disclosure
Committee
Environmental
and Social
Sustainability
Committee
Number of Meetings
13642494
Joan Withers
13642494
Tony Balfour
13
3
1
4221
1
4
John Journee
1363
1
44
Robbie Tindall
13
3
1
4239
Will Easton
2
9
1
1
32
Dean Hamilton
1261
1
249
Julia Raue
13644
Rachel Taulelei
13
4
1
441
1
4
1
Non-committee member in attendance
2
Resigned from Board in May 2022
BOARD MEETINGS AND ATTENDANCE
The table below outlines the number of meetings of the Board and Board Committees during the year ended 31 July 2022 and Director attendance at these meetings.
RISK MANAGEMENT
“Directors should have a sound understanding of the material risks faced by the
issuer and how to manage them. The Board should regularly verify that the issuer has
appropriate processes that identify and manage potential and material risks.”
Risk Management Framework
Risk is the chance of something happening that will have an impact on business
objectives. Having established an acceptable risk tolerance, the Company’s approach
is to identify, analyse, evaluate and appropriately manage risk in the business.
Material Risks Identified
Information on material risks the business faces and how they are managed are outlined
on pages 34 and 35.
Risk Management Roles and Responsibilities
The Board is responsible for reviewing and approving the Company’s risk management
strategy. The Board delegates day-to-day management of risk to the Group CEO who
may further delegate such responsibilities to executive and other officers. Inherent in this
delegation is the belief that responsibility for managing risks in the business is the domain
of the business unit.
Risk Monitoring and Evaluation
While the Board is ultimately responsible for the risk management of the Company,
the Audit and Risk Committee reviews the reports of Management and the external
and internal auditors on the effectiveness of systems for internal control, financial
reporting and risk management. To assist in discharging this responsibility, the Board
has in place a number of strategies designed to safeguard the Company’s assets and
interests and ensure the integrity of reporting. These reports include quarterly reviews
of store audit results and quarterly reports on internal audit findings.
Health and Safety
The Company’s approach and process on health and safety initiatives can be found on
pages 46 to 49.
Indemnity and Insurance
In accordance with section 162 of the Companies Act 1993 and the Constitution of the
Company, the Company has provided insurance for, and indemnities to, Directors and
employees of the Group and its subsidiaries for losses from actions undertaken in the
course of their legitimate duties. The insurance includes indemnity costs and expenses
incurred to defend an action that falls outside the scope of the indemnity.
AUDITORS
“The Board should ensure the quality and independence of the external audit process.”
Approach to Audit Governance
The independence of the external auditor is of particular importance to shareholders
and the Board. The Audit and Risk Committee is responsible for overseeing the external
audit of the Company. Accordingly, it monitors developments in the areas of audit and
threats to audit independence to ensure its policies and practices are consistent with
emerging best practice in these areas.
The Board has adopted a policy on audit independence, the key elements of which are:
• the external auditor must remain independent of the Company at all times and
comply with the Chartered Accountants Australia and New Zealand (CAANZ) Code of
Ethics;
• the external auditor must monitor its independence and annually report to the Board
that it has remained independent;
• the audit firm is permitted to provide certain non-audit services, set out in the
Audit and Risk Committee Charter, that are not considered to be in conflict with
the preservation of the independence of the auditor; and
• the Audit and Risk Committee must approve significant permissible non-audit work
assignments that are awarded to an external auditor, and the value of non-audit work
must be reported at every Board meeting.
Engagement of the External Auditor
The Company’s external auditor is PricewaterhouseCoopers (PwC). PwC was appointed
by shareholders at the 2004 Annual Meeting in accordance with the provisions of the
Companies Act 1993 (Act). PwC is automatically reappointed as auditor under section
207T of the Act.
Attendance at the Annual Shareholders' Meeting
PwC, as auditor of the 2022 Financial Statements, has been invited to attend this
year’s Annual Shareholders’ Meeting and will be available to answer questions about
the conduct of the audit, preparation and content of the auditor's report, accounting
policies adopted by The Warehouse Group Limited and the independence of the
auditor in relation to the conduct of the audit.
The Company’s corporate legal advisors, Russell McVeagh, will also attend the Annual
Shareholders’ Meeting.
Internal Audit
The Company has an internal audit function which is independent of the Company’s
external auditors. The internal audit function of the Company is undertaken by Ernst &
Young and the Company’s own internal audit team. The respective internal audit teams
report to and are directed by the Audit and Risk Committee.
Each year, the internal audit programme is approved by the Audit and Risk Committee.
The programme of audit work considers the most significant areas of business risk in
the Company and is developed following discussions with senior management, review
of the business process model of the Company and consideration of the findings of
the strategic risk assessment. The programme considers risks also in relation to major
projects that are planned or currently under way.
The role of internal audit is to:
• assess the design and operating effectiveness of controls governing key operations,
processes and business risks;
• provide the Board with an assessment, independent of management, as to the
adequacy of the Company’s internal operating and financial controls, business
processes, systems and practices; and
• assist the Board in meeting its corporate governance and regulatory responsibilities.

The Warehouse Group Integrated Annual Report 2022100Corporate Governance101
Areas of
Focus
ObjectiveTargetActual as at 31 July 2022
Gender
Improve
representation of
women at senior
levels of business
50% of senior leadership
roles held by women
20212022
Female representationFemaleTotalFemaleTotal
Board3837
Executive2 12210
Direct report to executive
team
30602548
Other*
*199 were non-disclosed
6,21411,0696,36011,142
Gender
composition of
Directors and
Officers
Disclosure on self-identification of
gender where members identify as:
FemaleMaleGender Diverse
Board3 40
Executives280
100% Gender
pay equity*
Category
Number of Employees in each
category
Median Pay RatioGender Pay Gap
TWG - Total11,200100%0%
TWG Leadership5890%10%
SSO Agile1,00399%1%
SSO Non-Agile51579%21%
Stores8,668103%-3%
Distribution956100%0%
Age
Other*
*106 were non-disclosed
Māori
Culture
Build our
Māori cultural
competency
To earn and strengthen our position
as a New Zealand employer and
community partner by encouraging
and enriching inclusion of Māori
cultural and language practices
throughout Aotearoa
In FY22 we launched our Whakatupu Te Kākano Māori courses, tuatahi and tuarua in partnership
with MIT, which as the name translates to is about growing the seed of te reo in our employees.
We also launched our TupuToa internships, increasing the frequency of te reo on instore radio
and among our leadership group as well as recognising Matariki and Māori Language Week.
In FY23 we aim to continue growing our cultural competency and embed this into our everyday
business practices. We will continue to celebrate Māori culture through Matariki and Māori
Language week, along with engaging with our partners in Te Kaa, our Whakatupu Te Kākano Māori
courses, TupuToa and REA Foundation.
Diversity
and
Inclusion
Develop and
celebrate our
diversity
Senior Managers complete
unconscious bias training and
managing diversity in the workplace
workshops
Launch annual Diversity and Inclusion
survey to build D&I understanding
and demographic make-up
D&I communities to be established
across the Group to support initiatives
close to our team members' hearts
Re-launched Lean in Circles to empower wāhine (women) through peer-to-peer mentoring and
support networks.
Celebrations: Auckland Pride Month, International Women’s Day, Wellbeing Week with a focus on
mental health, Gumboot Friday, Pink Shirt Day.
Partnership with Brain Badge and Altogether Autism to champion diverse thinking.
Continue to
support our
people through
inclusive
policies
Continue to support our Gender Transition Policy and Family Violence Policy (in 2021 we reviewed our Family Violence Policy and increased
this to 15 days' paid leave and 3 free nights’ accommodation)
Support parental leave policies such as Ease Back to Work to encourage mothers to return to work.
For FY22 we focused on fostering an environment of inclusion for all types of diversity so that everyone feels like they belong. We aim to foster an environment where everyone
feels safe to be themselves and bring their whole selves to work.
Age representationUnder 30 years old30-50 years oldOver 50 years old
Board
#
-
25
-
46
-
5,4683,7502,018
%
-
29%71%
-
40%60%
-
48%33%
311765%35%
18%
%%##
Executive
Direct report to executive
team*
* 1 individual non-disclosed
CELEBRATING DIVERSITY AND INCLUSION
The Group strives to create a workplace where our people feel they can bring their whole selves to work. We believe that can only happen in an environment where diversity and
inclusion are embraced. That is why we’re committed to continuously identifying ways we can improve diversity and inclusivity.
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Company’s values and behaviours, business goals and legal obligations, and outlines
internal reporting procedures for any breaches. Sanctions for breaches may include
serious disciplinary action, removal from office and dismissal as well as other remedies,
all to the extent permitted by law and as appropriate given the specific circumstances.
An introduction to the Code of Ethics forms part of the induction and training process
of new employees. The Code is available on the Corporate Governance section of the
website.
Financial Products Trading Policy
The Company is committed to transparency and fairness in dealing with all its
stakeholders and to ensuring adherence to all applicable laws and regulations. The
Financial Products Trading Policy governs trading in the Company’s securities by
Directors, employees and other associated persons. The policy and timing of black-out
periods is set out in the Financial Products Trading Policy which is available on the
Corporate Governance section of the website.
REPORTING AND DISCLOSURE
“The Board should demand integrity in financial and non-financial reporting and in
the timeliness and balance of corporate disclosures.”
The Board is committed to providing full and timely financial and non-financial
information that is accurate, balanced, meaningful and consistent. As a listed company,
keeping the market informed is a key component to ensuring the securities are valued
fairly.
Market Disclosure Policy
The Board has approved a Market Disclosure Policy which describes the processes
designed to ensure that the Company meets its reporting and disclosure objectives
and all disclosure obligations under the NZX Listing Rules.
To assist the Company with its Market Disclosure Policy, the Board has appointed a
Disclosure Committee. The Committee is responsible for making decisions on what
should be disclosed publicly under the Market Disclosure Policy. The Company
Secretary is the Disclosure Officer of the Company and has responsibility for ensuring
compliance with the continuous disclosure requirements and overseeing and co-
ordinating disclosure to the market.
Financial Reporting
The Audit and Risk Committee oversees the quality and integrity of external financial
reporting including the accuracy, completeness and timeliness of financial statements
and is committed to providing balanced, clear and objective financial reporting.
It reviews half-yearly and annual financial statements and makes recommendations
to the Board concerning accounting policies, areas of judgement, compliance with
accounting standards, stock exchange and legal requirements, and the results of the
external and internal audit.
Management accountability for the integrity of the Company’s financial reporting is
reinforced by certification from the Group CEO and the CFO. The Group CEO and CFO
have provided the Board with written confirmation that the Company’s financial report
presents a true and fair view, in all material respects, of the Company’s financial position
for the year ended 31 July 2022, and that operational results are in accordance with
relevant accounting standards.
Non-Financial Reporting
The Warehouse Group’s Corporate Governance section on the website includes all key
governance documents including the Code of Ethics, Board and Committee Charters
and relevant Company policies.
Communities and the environment are at the heart of the Company’s culture. The
Company reports annually its financial and non-financial contribution to the community,
as well as audited figures on its greenhouse gas emissions. The Company’s philosophy,
achievements, material environmental, economic and social risks are outlined in our
Integrated Report.
Use of
Information by Directors
During the financial year, there were no notices from Directors of the Company, or its
subsidiary companies, requesting to disclose or use Company information received in
their capacities as Directors of the Company or its subsidiary companies which would
not otherwise have been available to them.
DIVERSITY
Diversity of gender, skill, age, experience and beliefs are valued and the provision
of equal opportunities for all employees and those looking to join the Company is
fundamental to the way we operate as a business. For the year ended 31 July 2022 the
Board is satisfied that the Company achieved its gender diversity objectives and other
measurable objectives. Details regarding the Company’s Diversity and Inclusion Policy,
goals and performance criteria are detailed on the next page.
ENGAGING WITH OUR INVESTORS
SHAREHOLDER RIGHTS AND RELATIONS
“The Board should respect the rights of shareholders and foster constructive
relationships with shareholders that encourage them to engage with the issuer.”
The Company is committed to providing a high standard of communication to its
investors. The Company believes effective communication achieved by equal access
to timely, accurate and complete information allows investors to make informed
assessments of the Company’s value and prospects. Investor communication is
governed by the Investor Communications Policy.
The Company has an investor relations programme which includes communication
through:
• periodic and continuous disclosure to the NZX;
• annual reports;
• the Annual Shareholders’ Meeting;
• the Company’s website, which includes financial and operational information, and key
Corporate Governance information; and
• analyst and investor briefings and roadshows.
Engagement with Investors
The Company values its dialogue with strategic stakeholders, institutional and retail
investors, and believes effective engagement benefits both the Company and investors.
ASMs, analyst and investor briefings and roadshows provide an important opportunity
for this dialogue. Shareholders also have the opportunity to submit questions and
comments through investors@thewarehouse.co.nz
Website
The Company’s website contains a comprehensive set of investor-related material and
data including NZX disclosures and media releases, interim and annual reports, share-
price and dividend information, shareholder meeting materials and all of the Company’s
governance charters and policies.
Annual Shareholders' Meeting (ASM)
The ASM provides an opportunity for Directors, the Group CEO, senior management and
the Company’s external auditor to meet shareholders and answer any questions they
may have.
The ASM is held at a convenient time and location and this year is anticipated to be
run as a hybrid meeting (being a combination of the physical meeting as well as a
virtual online meeting). The 2022 ASM will be held on 25 November 2022. The Notice
of Meeting will be circulated as soon as possible (at least 20 working days before the
meeting) and will be posted on the Company’s website.
In accordance with the Companies Act 1993 and NZX Listing Rules, the Company refers
any significant matters to shareholders for approval at the ASM, and shareholders are
given the opportunity to vote by proxy ahead of the meeting or by polling if attending
the meeting in person or virtually.
Electronic Communication
The Company moved to electronic reporting in 2016, noting a key component of the
Company’s strategy is cost effectiveness and minimising the Company’s impact on the
environment. Shareholders can request a hard copy of the Annual Report to be mailed
to them free of charge by contacting Computershare, our share registrar. We would
encourage shareholders to provide their email addresses to Computershare to enable
them to receive all other shareholder materials electronically.
Computershare Investor Services Limited
Telephone: +64 9 488 8777
Email: enquiry@computershare.co.nz
CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour, model this behaviour and
hold management accountable for these standards being followed throughout the
organisation.”
The Company is committed to fostering the highest standards of ethical behaviour and
good conduct. We believe this is at the heart of having a reputation as a trusted and
respected company that promotes honesty, integrity and ethical conduct across the
organisation in day-to-day behaviour and decision-making.
Code of Ethics
The Code of Ethics sets out the standards of conduct expected of everyone working
at The Warehouse Group including Directors, our people, contractors and other
agents. The Code of Ethics provides a guide to the conduct that is consistent with the
*undisclosed gender
data is not included.

The Warehouse Group Integrated Annual Report 2022102Statutory Disclosures103
DescriptionPerformance Measures
Percentage
Achieved
Short-term Incentive
(STI)
Set at 50% of base salary for On Target Performance.
Combination of financial and non-financial performance
measures.
Financial measures: 70% weighting:
The financial measures are based on achieving Group EBIT budget
(excluding STI).
70% x 120%
For this to be payable, the Group must firstly achieve a
gate opener of 90% of the Adjusted NPAT budget and
a minimum level of individual performance must be
achieved.
Individual Measures 30% weighting:
Individual goals relate to delivery of strategic priorities, delivering core
business drivers and building capabilities.
30% x 120%
Long-Term Incentive
(LTI) for the 3 years
ending 2022
Cash based scheme. Potential 50% of base salary for
On Target Performance.
100% weighting based on the three-year Group Adjusted NPAT,
calculated as a percentage of the Budgeted Group Adjusted NPAT.
50% of potential paid if >95% of target achieved, increasing to a maximum
of 150% for achievement of 125% of target.
150%
Base Pay for Performance
Salary
Ta xab l e
BenefitsSubtotalSTILTISubtotal
Total
Remuneration
Nick Grayston1,5131031,6168771,0751,9523,568
YearGroup CEOTotal Earnings Paid BaseTaxable BenefitsSTISTI as % of MaximumLTI
2022Nick Grayston3,5681,51310387797%1,075
2021Nick Grayston2,3781,46169 --848
2020Nick Grayston2,8621,46197--1,304
2019Nick Grayston1,9721,4356647148%-
2018Nick Grayston2,2371,4155476896%-
REMUNERATION REPORT
1. CEO remuneration 2022 ($ 000s)
2. 5 year summary of CEO remuneration ($ 000s)
3. Breakdown of pay for performance (2022)
Explanation of the above items
1. The 2022 Long-Term Incentive (LTI) value above relates to FY19–FY21 but was paid in FY22. The FY20-FY22 LTI and FY22 STI will be paid in FY23.
2. The actual remuneration paid includes holiday pay paid as per NZ legislation.
3. Taxable benefits are the value of employer KiwiSaver contributions.
4. 5 year summary of Total Shareholder Return performance
TOTAL SHAREHOLDER RETURN (TSR)
STATUTORY DISCLOSURESSTATUTORY DISCLOSURES
Year Invited% of SalarySettlementPerformance PeriodMeasure
FY1950%CashAugust 2018 to July 2021Three-year Group Adjusted NPAT achieved calculated as a percentage of the budgeted Group Adjusted NPAT.
FY2050%CashAugust 2019 to July 2022 Three-year Group Adjusted NPAT achieved calculated as a percentage of the budgeted Group Adjusted NPAT.
FY2150%CashAugust 2020 to July 2023 Absolute TSR^ against the Company’s cost of equity plus 1% over a three-year performance period.
FY2250%Cash/SharesAugust 2021 to July 2024 Absolute TSR^ against the Company’s cost of equity plus 1% over a three-year performance period.
FY2350%CashAugust 2022 to July 2025 Absolute TSR^ against the Company’s cost of equity plus 1% over a three-year performance period.
DescriptionPerformance Measures
1. TSR MethodologyTotal Shareholder Return has been calculated as the movement in the share price during the period plus any dividends paid.
2. Board Discretion
The Board of Directors has not exercised discretion with regard to CEO’s incentive pay for performance for 2022. Any payments made or
forecasted are in line with contractual or scheme criteria.
3. OmissionsNo information has been omitted relating to CEO remuneration.
4. Any Other ItemsThere are no other items payable to the CEO that are not disclosed.
5. BenefitsThere are no benefits attributable to the CEO due to any loans made.
6. WithholdingsNo part of the CEO remuneration has been withheld for any purpose.
7. Related PartiesNo related parties are involved with the CEO remuneration.
Explanation: Base salary is set at $1,588 million for the financial year. STI is 50% of base salary for On Target performance. The gate for payment is 90% of 2023 Group Adjusted
NPAT budget. The STI is split: 70% based on Group financial results and 30% individual performance against goals. LTI is 50% of base salary, settled in cash, and is payable at the
end of the three-year performance period if The Warehouse Group's target of absolute TSR against the Company’s cost of equity plus 1% is achieved for the three-year period.
* As set out in section 6 the performance target for the CEO's LTI grants was changed in FY21 to be absolute TSR against the Company's cost of equity plus 1% over a three-year
performance period and is now capped at 125%.
^ TSR measure ensures Mangement’s long-term incentives are more closely aligned to shareholder outcomes.
REMUNERATION REPORT (CONTINUED)
5. Potential CEO remuneration (2023)
BASE
FY18FY19FY20FY21FY22
BASE + ON TARGET
INCENTIVES
4000
50%
50%
70%
90%
3000
30%
1000
-10%
2000
10%
0
-30%
100%
50%
LTI
STI
BASE
Base Package 2023Pay for Performance at Target 2023
$ 000Salary
Taxable
BenefitsSubtotalSTILTISubtotalTotal Remuneration
Nick Grayston1,588481,6367947941,5883,224
6. CEO LTI Grants
7. Required disclosures per guidelines
25%
25%
Financial Year 2018 (FY18)3.3%
Financial Year 2019 (FY19)20.2%
Financial Year 2020 (FY20)-6.1%
Financial Year 2021 (FY21)74 .9%
Financial Year 2022 (FY22)2.5%

The Warehouse Group Integrated Annual Report 2022104Statutory Disclosures105
Remuneration
($ 000)
Number of
Team Members
100 - 110134
110 - 120127
120 - 130109
130 - 14081
140 - 15056
150 - 16051
160 - 17023
170 - 18032
180 - 19038
190 - 20021
200 - 21016
210 - 22012
220 - 23012
230 - 2407
240 - 2509
250 - 2601
260 - 2705
270 - 2803
280 - 2901
Remuneration
($ 000)
Number of
Team Members
290 - 3002
300 - 3106
310 - 3201
320 - 3304
330 - 3407
340 - 3503
350 - 3601
360 - 3701
370 - 3801
380 - 3903
390 - 4002
400 - 4101
420 - 4301
460 - 4701
490 - 5002
500 - 5101
510 - 5201
530 - 5401
550 - 5601
Remuneration
($ 000)
Number of
Team Members
560 - 5701
640 - 6501
650 - 6601
680 - 6901
700 - 7101
720 - 7301
760 - 7701
810 - 8201
860 - 870 1
930 - 9401
970 - 9801
1,270 - 1,2801
1,360 - 1,3701
1,380 - 1,3901
1,420 - 1,4301
1,700 - 1,7101
3,560 - 3,5701
TEAM MEMBERS’ REMUNERATION
Grouped below, in accordance with section 211(1)(g) of the Companies Act 1993, are the number of Team Members or former Team Members, not being directors or former directors,
who received remuneration and other benefits valued at or exceeding $100,000 during the accounting period.
Remuneration includes redundancy payments and termination payments made during the year to Team Members whose remuneration would not otherwise have been included in
the table reported below.
as at 1 Jan 2021
Fees changed
as at 1 Dec 2021
Board/Committee NamePositionFees (Per Annum)Fees (Per Annum)
Board of Directors
Chair $166,000
1
$182,600
1
Member $78,525 $87,000
Audit and Risk Committee
Chair $25,000 $27,500
Member $7,500 $10,000
People and Remuneration Committee
Chair $20,000 $25,000
Member $6,000 $6,600
Health, Safety and Wellbeing Committee
Chair $15,000 $20,000
Member--
Environmental and Social Sustainability Committee
Chair- $20,000
Member- $6,600
Corporate Governance and Nomination Committee
Chair--
Member--
Disclosure Committee
Chair--
Member--
1
Includes attendances at committee meetings
DIRECTORS' REMUNERATION
The current Directors’ fee pool limit is $990,000 which was approved by the shareholders at the 26 November 2021 Annual Shareholders' Meeting. Fees are paid for Board
and committee roles as indicated below. Directors are reimbursed for reasonable travel and other costs associated with fulfilling their role. The Chair and Deputy Chair
(if applicable) do not receive additional fees for membership of other Board committees.
ACTUAL DIRECTOR REMUNERATION 2021/22
Name of Director
Board
Fees
1
Audit
and Risk
Committee
1
People and
Remuneration
Committee
1
Corporate
Governance
and Nomination
Committee
Disclosure
Committee
Health, Safety
and Wellbeing
Committee
1
Environmental
and Social
Sustainability
Committee
5
Other
Committees
Shares
and Other
Payments
or Benefits
Total
Individual
Remuneration
Joan Withers (Chair)
$177,067
(Chair)
-
(member)
-
(member)
-
(Chair)
-
(member)
-
(member)
-
(member)
-- $177,067
Tony Balfour $84,175 -
$23,333
(Chair)
-
(member)
-
-
(member)
$4,400
(member)
-- $111,908
William Easton
(retired May 2022)
$69,675 -
$5,300
(member)
--
-
(member)
--- $74,975
Dean Hamilton
4
$84,175
$26,667
(Chair)
-
-
(member)
-
(member)
-
(member)
--- $110,842
Julia Raue $84,175
$9,167
(member)
- -
$18,333
(Chair)
1
$4,400
(member)
-- $116,075
Rachel Tulelei $84,175 -
$6,400
(member)
--
-
(member)
$13,333
(Chair)
--$103,908
John Journee
3
$84,175
$9,167
(member)
-- -
-
(member)
$4,400
(member)
--$97,742
Robbie Tindall
2
$84,175 -
$6,400
(member)
-
(member)
-
(member)
-
(member)
--- $90,575
1
Chair, director and member fees increased from 1 December 2021.
2
Robbie Tindall received an additional fee of $13,750 as a director of subsidiary company TheMarket.com Limited.
3
John Journee received an additional fee of $13,750 as a director of subsidiary company TheMarket.com Limited.
4
Dean Hamilton received an additional fee of $7,563 as a director of subsidiary company TheMarket.com Limited.
5
Environmental and Sustainability Committee Chair and members paid from 1 December 2021 only.
The fees paid to non-executive Directors for services in their capacity as directors during the year ended 31 July 2022 totalling $883,092 were paid as follows:
STATUTORY DISCLOSURESSTATUTORY DISCLOSURES

The Warehouse Group Integrated Annual Report 2022106107Statutory Disclosures
DISCLOSURES OF INTERESTS BY DIRECTORS
General disclosures
The following are particulars of general disclosures of interest given by the Directors of the Company pursuant to section 140(2) of the Companies Act 1993 as at 31 July 2022:
ANTONY (TONY) BALFOUR
Director and Shareholder, Les Mills International Limited
Director, RealNZ Limited
Director, BLIS Technologies Limited
Director, Pioneer Energy Limited
JOHN JOURNEE
Director, Farmlands Society
Director, Colonial Motor Company Limited
Director, CMC Workplace Savings Scheme Trustee Limited
Director, Vanishing Point Limited
Member, Advisory Board, Quantiful Limited
Director, West Auckland Trust Services Limited
JULIA RAUE
Director, Jade Software Corporation Limited
Director, Southern Cross Healthcare Limited
Trustee, Southern Cross Health Trust
Director, Southern Cross Health Society
Director, Southern Cross Pet Insurance Limited
Director, Southern Cross Benefits Limited
Director, Rowdy Consulting Limited
Chair, NZ Rugby Appointments and Remuneration Committee
Trustee, Global Women
Member, Auckland Rugby Appointments Committee
JOAN WITHERS
Director, ANZ Bank New Zealand Limited
Director, On Being Bold Limited
Director, Sky Network Television Limited
Member, Appointments Panel Fonterra farmer elected directors
Trustee, Sweet Louise Foundation
Director, Origin Energy Limited
DEAN HAMILTON
Chair and Shareholder, Fulton Hogan Limited
Director and Shareholder, Auckland International Airport Limited
Director, Tappenden Holdings Limited
ROBERT (ROBBIE) TINDALL
Trustee, The Tindall Foundation
Trustee, Finn Lowery Foundation
Director, Foundation Services Limited
Director, K One W One Limited
Director, K One W One (No 2) Limited
Director, K One W One (No 3) Limited
Director, K One W One (No 4) Limited
Director, K One W One (No 5) Limited
RACHEL TAULELEI
Member, APEC Business Advisory Council
Chair, Wellington Regional Stadium Trust
Advisory Board Member, Movac
Limited Partner, Movac Fund 5 LP
Director, RLaw Limited
Director, Oho 2021 Limited
Director, ANZCO Foods Limited
Director and Chair, Aotearoa Fisheries Limited t/a Moana New Zealand
Director, Pupuri Taonga Limited
Director, Kura Limited
Director, Sealord Group Limited
Trustee, Katihiku Trust
Director, AFL Investments Limited
Director, CWBG Limited
SHARE DEALINGS BY DIRECTORS
During the year, the Directors disclosed in respect of section 148(2) of the Companies Act 1993 that they acquired or disposed of a relevant interest in shares as follows:
DIRECTORS’ SHAREHOLDINGS AS AT 31 JULY 2022
At 31 July 2022 the following Directors, or entities related to them, held interests in the Company shares:
Beneficial
Interest
Beneficial
Interest
Non-beneficial
Interest
Non-beneficial
Interest
Related
Party
Related
Party
202220212022202120222021
D Hamilton 1,493,0571,493,057
J Journee 172,000172,000
J Raue 15,00015,000
R J Tindall 4,8004,80093,721,18493,721,184
J Withers80,41968,4191,493,0571,493,057
T Balfour1,015,8751,015,875
Share Transaction
Date of
Transaction
Number of
Ordinary shares
Acquired/
(Disposed)Consideration
J Withers October 202112,000
On market purchase
of shares at an
average price of
$4.11 per share
Number of
Ordinary Shares
Percentage of
Ordinary Shares
Sir Stephen Robert Tindall93,687,096 27.01
The Tindall Foundation Inc73,920,496 21.31
James Pascoe Limited69,333,940 19.99
New Zealand Depository Nominee Limited <A/C 1 Cash Account>5,123,048 1.48
National Nominees Limited – NZCSD <NNLZ90>4,551,703 1.31
BNP Paribas Nominees (NZ) Limited – NZCSD <BPSS40>4,016,856 1.16
Forsyth Barr Custodians Limited <1 CUSTODY>3,941,571 1.14
Citibank Nominees (New Zealand) Limited – NZCSD <CNOM90>3,924,587 1.13
Stephen Robert Tindall & John Richard Avery & Brian Mayo-Smith <SR Tindall Family A/C>3,778,149 1.09
Custodial Services Limited <A/C 4>3,724,462 1.07
Robert George Tindall & Stephen Robert Tindall & Pupuke Trustee Limited <Tindall A/C>3,455,103 1.00
HSBC Nominees (New Zealand) Limited – NZCSD <HKBN90>3,132,542 0.90
HSBC Nominees A/C NZ Superannuation Fund Nominees Limited – NZCSD <SUPR40>2,988,602 0.86
HSBC Nominees (New Zealand) Limited A/C State Street – NZCSD <HKBN45>2,537,155 0.73
Accident Compensation Corporation – NZCSD <ACCI40>1,583,127 0.46
FNZ Custodians Limited1,264,600 0.36
Hobson Wealth Custodian Limited <Resident Cash Account>1,217,040 0.35
Simplicity Nominees Limited – NZCSD999,208 0.29
Stephen Robert Tindall & John Richard Avery & Brian Mayo-Smith <MERANI A/C>752,798 0.22
TEA Custodians Limited Client Property Trust Account – NZCSD <TEAC40>708,1620.20
284,640,24582.07%
1
New Zealand Central Securities Depository Limited (NZCSD) is a depository system which allows electronic trading of members. As at 31 July 2022 total holdings in NZCSD
were 25,960,477 or 7.48% of shares on issue.
TWENTY LARGEST REGISTERED SHAREHOLDERS AS AT 31 JULY 2022
STATUTORY DISCLOSURESSTATUTORY DISCLOSURES

The Warehouse Group Integrated Annual Report 2022108109Statutory Disclosures
Size of ShareholdingNumber of Shareholders PercentageNumber of Shares Percentage
1 - 1,000 3,663 36.86%1,677,796 0.48%
1,001 - 5,000 3,990 40.16% 8,797,252 2.54%
5,001 - 10,000 1,071 10.78% 7,022,586 2.02%
10,001 - 100,000 1,121 11.28% 24,527,955 7.08%
100,000 and over 91 0.92%304,817,53187.88%
9,936 100% 346,843,120 100%
Geographic Distribution
Auckland and Northland 3,827 38.52% 302,995,871 87.37%
Waikato and Central North Island 2,017 20.30% 12,871,727 3.71%
Lower North Island and Wellington 1,424 14.33% 11,687,281 3.37%
Canterbury, Marlborough and Westland 1,077 10.84% 6,363,246 1.83%
Otago and Southland 693 6.97% 10,832,747 3.12%
Australia 763 7.68% 1,265,032 0.36%
Other Overseas 135 1.36% 827,216 0.24%
9,936 100% 346,843,120 100%
DISTRIBUTION OF SHAREHOLDERS AND HOLDINGS AS AT 31 JULY 2022
Relevant InterestDate of Notice
James Pascoe Limited68,270,08110 May 2018
Sir Stephen Tindall84,141,52419 March 2004
The Tindall Foundation66,323,22019 March 2004
SUBSTANTIAL PRODUCT HOLDERS
According to notices given to the Company under the Financial Markets Conduct Act 2013, as at 31 July 2022, the substantial product holders in the Company and their relevant
interests are noted below:
CompanyDirectors
1-Day Liquor Limited J Oram
Bond and Bond Limited B Moors, J Oram
Boye Developments Limited B Moors, J Oram
Eldamos Investments Limited B Moors, J Oram
Eldamos Nominees Limited J Oram
Noel Leeming Finance Limited B Moors
Noel Leeming Financial Services Limited B Moors, J Oram
Noel Leeming Furniture Limited B Moors, J Oram
Noel Leeming Limited B Moors, J Oram
The Book Depot Limited J Oram
TheMarket.com Limited N Grayston, J Journee, R Tindall, J Oram, D Hamilton
The Warehouse Card Limited J Oram
The Warehouse Group Support Services Limited J Oram
The Warehouse Investments Limited J Oram
The Warehouse Limited N Grayston, J Oram, T Edwards (R)
The Warehouse Nominees Limited B Moors, J Oram
TWGI Operations Limited J Oram
Torpedo7 Limited T Edwards (R), S West, J Oram
TWGA Pty Ltd I McGill, B Moors, J Oram
TWL Australia Pty Limited I McGill, B Moors, J Oram
TWP No.1 Limited J Oram, N Tuck (R)
TWP No.4 Limited B Moors, J Oram
TWP No.5 Limited B Moors, J Oram
ChocolateWorks NZ Limited N Craig, A Razey, H Vetsch, K McKenzie, M Anderson (R), S Smith (R)
Warehouse Stationery Limited B Moors
Lincoln West Limited K Gardiner, G Helsby, G Lane, J Oram
Farran (Nine) Limited K Gardiner, G Helsby, G Lane, J Oram
The Warehouse Planit Trustees Limited J Withers
The Warehouse Management Trustee Company Limited J Withers, A Balfour, D Hamilton
The Warehouse Management Trustee Company No.2 Limited J Withers, A Balfour, D Hamilton
TW House Sourcing Private Limited (India) K Kramer, T Benyon, M Anderton, C Srinivasan
The Warehouse (Shanghai) Trading Company Limited K Kramer, T Benyon, M Anderton
SUBSIDIARY COMPANY DIRECTORS
The following people held office as directors of subsidiary companies at 31 July 2022. Those who retired during the year are indicated with an (R).
STATUTORY DISCLOSURESSTATUTORY DISCLOSURES

The Warehouse Group Integrated Annual Report 2022110GRI Report111
STOCK EXCHANGE LISTING
The ordinary shares of The Warehouse Group Limited are listed on the New Zealand
Exchange (NZX).
ORDINARY SHARES
The total number of voting securities of the Company on issue on 31 July 2022 was
346,843,120 fully paid ordinary shares
RIGHTS ATTACHING TO SHARES
Clauses 20-22 of the Company’s Constitution set out the voting rights of
shareholders. Ordinary shares in the Company each carry a right to vote on a poll at
any general meeting of shareholders on any resolution. Holders of ordinary shares
may vote at a meeting in person, or by proxy, representative or attorney. Voting may
be conducted by voice, a show of hands or a poll. Each of the Company’s ordinary
shares entitles the holder to one vote.
ON-MARKET SHARE BUY-BACKS
The Company is not, at the date of this annual report, undertaking any on-market
share buy-backs.
ESCROW
Apart from the shares held under the Staff Purchase Plan, the Company has no
securities subject to an escrow agreement.
DONATIONS
In accordance with section 211(1)(h) of the Companies Act 1993, the Company records
that it donated $106k (2021 $499,390) to various charities during the year. In line with
Board policy, no political contributions were made during the year.
DIVIDENDS ON ORDINARY SHARES
The Warehouse Group Limited has paid dividends on its ordinary shares almost every
year since listing on the New Zealand Exchange in 1994, with the exception of 2020
due to the COVID-19 disruption to business. The Group’s current dividend policy was
approved by the Board in March 2021. The Group’s dividend 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.
On 27 September 2022 the Directors declared a fully imputed final dividend of 10.0 cents
per share bringing the total dividend for the year to 20.0 cents per share. The dividends
will be fully imputed at a rate of 28.0% and will be paid on 2 December 2022 to all
shareholders on the share register at the close of business on 17 November 2022.
AUDITOR
PricewaterhouseCoopers have continued to act as auditors of the company and have
undertaken the audit of the financial statements for the 31 July 2022 year.
DISCIPLINARY ACTION
NZX has not taken any disciplinary action against the Company during the period
under review.
NZX WAIVERS
Details of all waivers granted and published by NZX within or relied upon by the
Company in the 12 months immediately preceding The Warehouse Group Limited's
balance date are available on the Company’s website
www.thewarehousegroup.co.nz.
Dividends20222021202020192018
Interim 10.013.09.09.010.0
Special-5.0---
Final10.017.50.08.06.0
Total20.035.50.017.016.0
InitiativesAssociations
Environmental
• Paris Agreement
• Climate Leaders Coalition 2019 Statement
• Toitu Carbonzero
• Low Emissions Heavy Freight Working Group
• Carbon Disclosure Project (CDP)
• Soft Plastics Recycling Scheme
• Climate Leaders Coalition (CLC)
• Science Based Targets Initiative (SBTi)
• Sustainable Business Council (SBC)
• Energy Efficiency and Conservation Authority (EECA)
• WasteMinz
• Retail Network NZ
Human Resource
and People
• Retailers Against Racism Pledge
• P-TECH
• BSR - Her Project
https://herproject.Org/
• Tupu Toa
• HRNZ
• ShopCare
• Lean In NZ
• Brain Badge
• Rainbow Tick
Product Sourcing
and Development
• Better Cotton Initiative
https://bettercotton.org/
• Forest Stewardship Council
https://fsc.org/en
• New Zealand Business Round Table in China (NZBRiC)
• Business for Social Responsibility (BSR)
Other
• Building industry inclusion on the content of Vocational Education
with Services Workforce Development Council (WDC).
• Providing of Vocational Education training through Te Pukenga
• Working with MBIE on Future of Work
• Advocacy work across many proposed legislation changes by
Retail NZ
• Retail NZ
• Tertiary Eduction Commission / WDC
• Te Pukenga
• Service IQ / ITO
• New Zealand Business and Parliamentary Trust
• Business NZ
• NZ Marketing Association
• Digital Boost Alliance Aotearoa
INITIATIVES AND ASSOCIATIONS
Listed below are the external economic, environmental or social initiatives to which The Warehouse Group subscribes, and the main associations and national or international
advocacy organisations of which The Warehouse Group are members.
* These topics are governance related topics which are not specifically covered under GRI economic, environmental and social topics and boundaries.
The Warehouse Group’s vision is to make sustainable living easy and affordable for
everyone. We are committed to providing customers with sustainable and affordable
products, packaging and circulatory solutions, and to increase the sustainability of
our own operations by reducing waste and emissions. The Global Reporting Initiatives
(GRI) Framework is an open and transparent way we can report on our progress on this
ambition to our stakeholders.
This is the second year we have reported on the Environment, Social and
Governance (ESG) topics which are material to The Warehouse Group through
the GRI reporting framework.
We have maintained our view of material topics, which was determined in FY21 in our
first year of GRI Reporting through an internal and external stakeholder mapping
exercise. We interviewed a variety of stakeholders including customers, employees,
suppliers, shareholders and business customers to determine a materiality assessment
of economic, environmental, social and governance issues which are most important
to our stakeholders. These include groups which our business has a significant impact
on, and those which have a high interest in or considerable influence on the success
of our business.
GLOBAL REPORTING INITIATIVES (GRI)
MATERIALITY ASSESSMENT
Value at stake reflects the impact on the economy, environment, and/or society which
can lead to consequences for the organization’s business model, reputation, or ability to
achieve its objectives.
The following materiality matrix discloses the ranking of importance of these ESG issues.
This report has been prepared in accordance with the GRI Standards: Core option.
We have applied the GRI reporting principles, including consideration of Stakeholder
Inclusiveness, Sustainability Context, Materiality, and Completeness, when deciding
what topics and content to include in this report.
The report has been internally reviewed, supported by evidence, signed off by
management, and approved by the Board. The Warehouse Group has engaged Ernst
& Young (‘EY’) to provide limited assurance over the metrics within the Group’s GRI
Disclosures, specifically in relation to 305 (Emissions) and 306 (Waste). Refer to page 115
for this audit report.
Importance to
stakeholders
High• GHG emissions
• Waste & hazardous materials management
• Business ethics*
• Child labour & exploitive labour
• Physical impacts of climate change & product carbon footprint
• Product packaging and waste
• Product quality and safety
• Future workforce
• Materials sourcing and efficiency
• Supply chain management
• Access and affordability
Low
• Water & wastewater managements
• Ecological impacts
• Customer welfare
• Selling practice and product labelling
• Air quality
• Sustainability oversight
• Critical incident risk management
• Systematic risk management*
• Business model resilience*
• Human rights, responsible sourcing, & community relations
• Employee health & safety
• Customer privacy
• Data security*
• Energy management
• Employee engagements, diversity and inclusion
• Labour practices & employee training
• Product design & Lifestyle management
• Competitive behaviour*
LowHigh
Value at Stake – economic, environmental and social impacts
GRI REPORT
Holders of each class of equity security as at 31 July 2022
Class of equity security
Number of
Holders
Number of
Shares or Rights
Ordinary shares9,936346,843,120
STATUTORY DISCLOSURES

The Warehouse Group Integrated Annual Report 2022112113GRI Report
Indicator
GRI 102:
DisclosureReference in this
Annual Report
Omission or
External Reference
102-1Name of the organisationThe Warehouse Group
102-2Activities, brands, products, and servicesPag 15-25
102-3Location of headquartersPage 115
102-4Location of operationsPage 15-25, 37, 115
102-5Ownership and legal formPage 66
102-6Markets servedPage 15-25
102-7Scale of the organisationPage 15-25: Store map and brands
Page 46: Our People
Page 50-52: Financial Capital
Page 62: Consolidated Income Statement
Page 63: Consolidated Balance Sheet
Page 68-69: Note 2.0, Segment Note
Page 101: Celebrating Diversity and Inclusion
102-8Information on employees and other workersPage 46-49: Our People
Page 101: Celebrating Diversity and Inclusion
Information on employees is not broken down by
employment type or employment contract. An
insignificant portion of the Group's activities is
performed by workers who are not employees or who
are seasonal workers.
102-9Supply chain
Page 36-37: Our Networks
Page 44-45: Our Relationships
102-10Significant changes to the organisation and its supply chainNone
102-11Precautionary Principle or approach
Page 34-35: Risk and Materiality
Page 96-101: Corporate Governance
102-12External initiativesPage 110
102-13Membership of associationsPage 110
102-14Statement from senior decision-makerPage 6-9: Chair and CEO Report
102-16Values, principles, standards, and norms of behaviourPage 10
102-18Governance structurePage 91-99
102-40List of stakeholder groups
Page 40-49: Customers, Relationships, People
Page 107: 20 largest shareholders
Page 111: Stakeholders considered in GRI materiality matrix
102-41Collective bargaining agreementsPage 46: Our People
102-42Identifying and selecting stakeholders Page 111
102-43Approach to stakeholder engagement Page 111
102-44Key topics and concerns raised
Page 40-43: Our Customers
Page 44-45: Our Suppliers, Our Investors
Page 46-49: Our People
102-45Entities included in the consolidated financial statements Page 66: Note 1.3
102-46Defining report content and topic boundaries Page 111
102-47List of material topics Page 111
102-48Restatements of information None
102-49Changes in reporting None
102-50Reporting period 2 August 2021 to 31 July 2022
102-51Date of most recent report 1 August 2021
102-52Reporting cycle Annual
102-53Contact point for questions regarding the report investors@thewarehouse.co.nz
102-54Claims of reporting in accordance with the GRI Standards GRI Standards (Core Option), Page 111
102-55GRI content index Page 112-114
102-56External assurance
• The disclosures under GRI Standards 102-5, 102-7 (in part), 102-40 (in part) 102-45 are covered by the
external audit of the financial statements by PricewaterhouseCoopers, but these are not audited in
accordance with GRI. Refer to pages 84-89 for this audit report.
• GRI Standards 305 and 306 have been externally assured with limited assurance by Ernst & Young.
Refer to page 115 for this audit report.
• Carbon and energy emissions are obtained from Toitū certified emissions data. Refer to The Warehouse
Group 2022 Emissions Inventory Report.
IndicatorDisclosureReference in this
Annual Report
Omission or
External Reference
GRI 205: Anti-corruption (2016)
103Management ApproachPage 34, 46-49, 100
205-2Communication and training about anti-corruption policies and
procedures
Page 48
205-3Confirmed incidents of corruption and actions takenThere have been four bribery incidents
of note from external suppliers during
the year ended 31 July 2022, and these
vendors have been removed from our
supply chain.
GRI 206: Anti-competitive Behaviour (2016)
103Management ApproachPage 34, 99, 100
206-1Legal actions for anti-competitive behaviour, anti-trust and monopoly
practices
We are not aware of any legal cases
against the organisation regarding anti-
competitive behaviour and violations of
anti-trust and monopoly legislation during
the reporting period.
IndicatorDisclosureReference in this
Annual Report
Omission or
External Reference
GRI 302: Energy (2016)
103Management ApproachPage 28-29, 32-33, 98
302-1Energy consumption within the organisationPage 56
Refer to The Warehouse Group 2022 Emissions
Inventory Report.
302-3Energy intensityPage 56
302-4Reduction of energy consumptionPage 56
GRI 305: EMISSIONS 2016
103Management ApproachPage 28-29, 32-33, 98
305-1Direct (scope 1) GHG emissionsPage 55, 57-58
Refer to The Warehouse Group 2022 Emissions
Inventory Report.
305-2Energy indirect (Scope 2) GHG emissionsPage 55, 57-58
305-3Other indirect (Scope 3) GHG emissionsPage 55-58
305-4GHG emissions intensityPage 57
305-5Reduction of GHG emissionsPage 55, 57-58
GRI 306: WASTE 2020
103Management ApproachPage 28-29, 32-33, 98
306-1Waste generation and significant waste-related impactsPage 55, 58
Refer to The Warehouse Group 2022 Emissions
Inventory Report.
306-2Management of significant waste-related impactsPage 54-58
306-3Waste generatedPage 58
306-4Waste diverted from disposalPage 55, 58
306-5Waste directed to disposalPage 58
GRI 307: ENVIRONMENTAL COMPLIANCE (2016)
103Management ApproachPage 28-29, 32-33, 98
307-1Non-compliance with environmental laws and regulations
We are not aware of any incidents related to non-compliance with environmental laws and
regulations during the reporting period.
308-1New suppliers that were screened using environmental criteriaPage 44-45
308-2Negative environmental impacts in the supply chain and actions takenPage 44-45, 56
The Warehouse Group Ethical Sourcing Policy
GENERAL DISCLOSURES
ECONOMIC
ENVIRONMENTAL
GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEXGLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX

Ernst & Young Report115The Warehouse Group Integrated Annual Report 2022114
IndicatorDisclosureReference in this
Annual Report
Omission or
External Reference
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018
103Management ApproachPage 48-49, 96, 98-99
403-6Promotion of worker healthPage 46-49
403-9Work-related injuriesPage 48-49
GRI 404: TRAINING AND EDUCATION 2016
103Management ApproachPage 32-33, 46-49
404-1 Average hours of training per year per employeePage 48
Information on training hours per year by gender
and employee category is not yet available. We will
endeavour to work on this reporting in the future.
404-2
Programs for upgrading employee skills and transition assistance
programs
Page 47-48
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
103Management ApproachPage 32-33, 46-49, 96, 98, 100
405-1Diversity of governance bodies and employeesPage 101
405-2Ratio of basic salary and remuneration of women to menPage 101
Information on salary and remuneration by
employee category is not yet available. We will
endeavour to work on this reporting in the future.
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 2016
103Management ApproachPage 44-45, 100
The Warehouse Group Ethical Sourcing Policy
407-1
Operations and suppliers in which the right to freedom of association
and collective bargaining may be at risk
Page 44-45
GRI 408: CHILD LABOUR 2016
103Management ApproachPage 44-45, 100
The Warehouse Group Ethical Sourcing Policy
408-1Operations and suppliers at significant risk for incidents of child labourPage 44-45
GRI 409: FORCED OR COMPULSORY LABOR 2016
103Management ApproachPage 44-45, 100
The Warehouse Group Ethical Sourcing Policy
409-1
Operations and suppliers at significant risk for incidents of forced or
compulsory labour
Page 44-45
GRI 414: SUPPLIER SOCIAL ASSESSMENT 2016
103Management ApproachPage 44-45, 100
The Warehouse Group Ethical Sourcing Policy
414-1New suppliers that were screened using social criteriaPage 44
414-2Negative social impacts in the supply chain and actions takenPage 44
SOCIAL
GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEXERNST & YOUNG REPORT
SCOPE
Ernst & Young (‘EY’) has performed a limited assurance engagement over selected
non-financial disclosures prepared by TWG in its 2022 Integrated Report (“the
Report”) for the year ended 31 July 2022 against the Global Reporting Initiative’s
Sustainability Reporting Standards in order to conclude that nothing has come to our
attention to indicate that the non-financial disclosures are not reported accurately
against these criteria.
SUBJECT MATTER
The Subject Matter for our limited assurance engagement included selected non-
financial disclosures in the Report, for the year ended 31 July 2022, limited to those
listed in Table 1 below.
A member firm of Ernst & Young Global Limited
THE SUBJECT MATTER DID NOT INCLUDE:
Data sets, statements, information, systems or approaches other than the selected
non-financial performance data specified in Table 1; and neither Management’s
forward-looking statements. Our Subject Matter does not include sustainability
disclosures relating to TWG’s funds, or for activities outside of TWG’s self-declared
reporting boundaries, as specified in the Criteria below
CRITERIA
In preparing the selected non-financial disclosures, Management determined the
reporting criteria as set out in:
●• The Global Reporting Initiative (GRI) Standards’ Sustainability Reporting Standards,
as follows:
● • GRI 305: Emissions 2016
● • GRI 306: Waste 2020
• GHG Protocol Corporate Accounting and Reporting Standard
With GHG emissions factors sourced from:
• New Zealand Ministry for the Environment, Measuring Emissions: A Guide for
Organisations (2022)
TWG’s organisational boundary is set out in TWG’s 2022 Greenhouse Gas Emissions
Inventory Report.
MANAGEMENT RESPONSIBILITY
The management of TWG is responsible for the collection and presentation of the
Subject Matter in accordance with the criteria and for maintaining adequate records
and internal controls that are designed to support assertions made in the selected
non-financial disclosures.
ASSURANCE PRACTITIONER’S RESPONSIBILITY
EY’s responsibility is to express a limited assurance conclusion on the selected non-
financial disclosures, based on our review. We are also responsible for maintaining our
independence and confirm that we have met the requirements of the APES 110 Code
of Ethics for Professional Accountants including independence and have the required
competencies and experience to conduct this assurance engagement.
ASSURANCE CONCLUSION
Based on our limited assurance procedures described below, nothing has come to our attention, that causes us to believe that selected non-financial disclosures prepared
by The Warehouse Group (“TWG”) in its ‘2022 Integrated Report’, is not reported and presented, in all material respects, in accordance with the criteria defined below.
INDEPENDENT LIMITED ASSURANCE STATEMENT TO THE MANAGEMENT
AND DIRECTORS OF THE WAREHOUSE GROUP LIMITED
Table 1: Selected Non-financial Disclosure
Climate Change
• Direct (Scope 1) GHG emissions
Scope 1 greenhouse gas (‘GHG’) emissions of 2,800 tonnes of carbon
dioxide equivalent (tCO
2
-e);
• Energy Indirect (Scope 2) GHG emissions
Scope 2 GHG emissions of 9,535 tCO
2
-e
• Reduction of GHG emissions
Increase of GHG emissions (Scope 1 & Scope 2) of 0.3% from 2021
to 2022
Waste
• Waste generated
Waste generated of 13,216 tonnes
• Waste diverted from disposal
Waste diverted from disposal of 9,704 tonnes
• Waste directed to disposal
Waste directed to disposal of 3,512 tonnes

The Warehouse Group Integrated Annual Report 2022116Directory117117117
LEVEL OF ASSURANCE
A limited assurance engagement consists of making enquiries and applying
analytical, controls testing, and other evidence-gathering procedures
sufficient for us to obtain a meaningful level of assurance as the basis
for providing a negative form of conclusion. The procedures performed
depend on the assurance practitioner’s judgement including the risk of
material misstatement of the specific activity data, whether due to fraud
or error. While we considered the effectiveness of Management’s internal
controls when determining the nature and extent of our procedures, these
procedures were not designed to provide assurance on internal controls. We
believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our conclusion.
OUR APPROACH
We conducted this review in accordance with the International Accounting Standards
Board’s International Standard on Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information (New Zealand) (‘ISAE 3000’(NZ)), and
Assurance Engagements on Greenhouse Gas Statements (‘ISAE 3410’), as well as
the terms of reference for this engagement as agreed with TWG on 06 July 2022.
The procedures we performed were based on our professional judgement and
included, but were not limited to, the following:
●• Conducting interviews with key personnel to understand the process for
collecting, collating and reporting the selected non-financial disclosures
during the reporting period
●●• Gaining an understanding of the basis for calculating and reporting GHG emissions
●●• Checking that the calculation criteria had been applied in accordance with the
methodologies outlined in TWG’s criteria
●●• Undertaking analytical review procedures to support the reasonableness of
the data
●●• Identifying and testing assumptions that support calculations
●●• Checking emissions factors and considered their consistency with the reporting
criteria
●●• Reviewing the presentation of the information in TWG’s 2022 Integrated Report.
We believe that the evidence obtained is sufficient and appropriate to provide a basis
for our limited assurance conclusions.
LIMITED ASSURANCE
Procedures performed in a limited assurance engagement vary in nature and timing,
and are less in extent, than for a reasonable assurance engagement. Consequently,
the level of assurance obtained in a limited assurance engagement is substantially
lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
While we considered the effectiveness of management’s internal controls when
determining the nature and extent of our procedures, our assurance engagement
was not designed to provide assurance on internal controls. Further, our procedures
did not include testing controls or performing procedures relating to checking the
aggregation or calculation of data within IT systems.
USE OF OUR ASSURANCE STATEMENT
We disclaim any assumption of responsibility for any reliance on this assurance report,
or on the Subject Matter to which it relates, to any persons other than Management and
the Directors of TWG, or for any purpose other than that for which it was prepared.
Ernst & Young Limited
Pip Best Partner
Auckland, New Zealand
27 September 2022
A member firm of Ernst & Young Global Limited
Board of Directors
Joan Withers (Chair)
Tony Balfour
Dean Hamilton
John Journee
Caroline Rainsford
Julia Raue
Rachel Taulelei
Robbie Tindall
Group Chief Executive Officer
Nick Grayston
Group Chief Financial Officer
Jonathan Oram
Company Secretary
Erin Vercoe
Place of Business
26 The Warehouse Way
Northcote, Auckland 0627
PO Box 33470, Takapuna
Auckland 0740, New Zealand
Telephone: +64 9 489 7000
Facsimile: +64 9 489 7444
Website: www.thewarehousegroup.co.nz
Registered Office
C/- BDO
Level 4, 4 Graham Street
PO Box 2219
Auckland 1140, New Zealand
New Zealand Business Number (NZBN)
New Zealand Incorporation: 9429038766633
Auditor
PricewaterhouseCoopers
Private Bag 92162
Auckland 1142, New Zealand
Stock Exchange Listing
NZX trading code: WHS
Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna
Private Bag 92119, Auckland 1142, New Zealand
Telephone: +64 9 488 8777
Facsimile: +64 9 488 8787
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz/investorcentre
Shareholder Enquiries
Shareholders with enquiries regarding share transactions, changes of address
or dividend payments should contact the Share Registrar.
Shareholdings can be managed electronically by using Computershare’s
secure website, www.computershare.co.nz/investorcentre. Functions include
viewing your share balance, address changes, payment and tax information,
updating payment instructions and your communications preference.
DIRECTORY

thewarehousegroup.co.nz
Section Title

---

Name of issuer THE WAREHOUSE GROUP LIMITED
Financial product description Ordinary Shares (346,843,120)
NZX ticker code WHS
ISIN NZWHSE0001S6
Type of distribution Full Year
X
Quarterly
(please mark with an X in the relevant box/es) Half Year Special
DRP Applies Not Applicable
Record date 17 November 2022
Ex-Date (one business day before the record date) 16 November 2022
Payment date 02 December 2022
Total monies associated with the distribution $34,684,312
Source of distribution Operating cashflows
Currency New Zealand dollars
Gross distribution $0.13888889
Gross taxable amount $0.13888889
Total cash distribution $0.10000000
Excluded amount $0.00000000
Supplementary distribution amount $0.01764706
Is this distribution imputed? Fully imputed
28%
$0.03888889
$0.00694444
Date of release through MAP
Imputation tax credits per financial product
Resident withholding tax amount per financial product
Section 5: 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)
Contact phone number (09) 489 7000
Contact email address Jonathan.Oram@thewarehouse.co.nz
28 September 2022
Section 4: Distribution re-investment plan (if applicable)
Not Applicable
If fully or partially imputed, please state imputation
rate as % applied
The Warehouse Group Limited
Corporate Action Notice (for a Distribution)
Section 1: Issuer Information
Section 2: Distribution amounts per financial product
Section 3: Imputation credits and resident withholding tax

---

Quarterly Sales
Reporting Period 52 weeks to 31 July 2022
Previous Reporting Period (2021) 52 weeks to 1 August 2021
Previous Reporting Period (2020) 53 weeks to 2 August 2020
Previous Reporting Period (2019) 52 weeks to 28 July 2019
Quarterly Retail Sales information:
(13 weeks)(13 weeks)(14 weeks)(13 weeks)
Fourth quarter sales
SalesSalesSalesSales
(2 May 2022 to 31 July 2022)
2022202120202019
($ Million)($ Million)($ Million)($ Million)
The Warehouse
429.6 427.7 469.9 389.9
+ 0.4 % - 8.6 % + 10.2 %
Warehouse Stationery60.3 66.2 70.5 64.3
- 8.9 % - 14.5 % - 6.2 %
Noel Leeming257.5 272.0 303.7 220.3
- 5.3 % - 15.2 % + 16.9 %
Torpedo737.5 38.5 42.1 27.9
- 2.6 % - 10.9 % + 34.4 %
Total Group
1
792.7 815.1 903.1 716.5
- 2.7 % - 12.2 % + 10.6 %
(52 weeks)(52 weeks)(53 weeks)(52 weeks)
Year to date sales
SalesSalesSalesSales
(2 August 2021 to 31 July 2022)
2022202120202019
($ Million)($ Million)($ Million)($ Million)
The Warehouse
1,726.9 1,804.9 1,706.0 1,705.7
- 4.3 % + 1.2 % + 1.2 %
Warehouse Stationery249.7 274.6 268.8 268.6
- 9.1 % - 7.1 % - 7.0 %
Noel Leeming1,096.7 1,128.2 1,010.0 924.6
- 2.8 % + 8.6 % + 18.6 %
Torpedo7171.5 158.7 129.9 114.3
+ 8.0 % + 32.0 % + 50.0 %
Total Group
1
3,294.3 3,414.6 3,172.8 3,071.4
- 3.5 % + 3.8 % + 7.3 %
Store Numbers
20222021202220212022202120222021
Start Quarter 4
899069 72 70 71 23 21
End Quarter 4
899068 71 68 70 24 21
20222021202220212022202120222021
Start Quarter 4
482,016 488,201 84,516 78,021 60,748 65,805 29,900 27,030
End Quarter 4
479,900 487,553 83,064 83,672 56,638 63,684 31,200 27,030
- - - 4
- - 2 4
- - 1 -
1 1 - -
Note:
The Warehouse Group Limited
Change in
sales
vs 2021
Change in
sales
vs 2020
Change in
sales
vs 2019
Change in
sales
vs 2021
Change in
sales
vs 2020
Change in
sales
vs 2019
The WarehouseNoel Leeming
Warehouse StationeryTorpedo7
Store
extension/
reduction
Store footprint (Square
Metres)
The WarehouseNoel Leeming
Warehouse StationeryTorpedo7
Store changes during the quarter
New
store
Replacement
store
Store
closure
The Warehouse
Warehouse Stationery
Noel Leeming
Torpedo7
1) Total Group sales includes TheMarket segment, eliminations and other Group operations in addition to the 4 main retail operations detailed above.

The Warehouse Group – Full-Year Results Teleconference Annual Shareholders Meeting 2022 and Director Nominations

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.