The Warehouse Group Limited FY23 Results

Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 52 weeks to 30 July 2023
Previous Reporting Period 52 weeks to 31 July 2022
Currency New Zealand dollars
$3,399,112
$3,399,112
$29,937
$29,937
Final Dividend
Record Date 16 November 2023
Dividend Payment Date 01 December 2023
Contact phone number
Contact email address
Date of release through MAP
Audited financial statements accompany this announcement.
Jonathan.Oram@thewarehouse.co.nz
28 September 2023
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
Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.680 (30 July 2023) $0.780 (31 July 2022)
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 30 July 2023.
Amount per Quoted Equity
Security
$0.08000000
Imputed amount per
Quoted Equity Security
$0.03111111
Current period
Total Revenue up 3.2 %
Net profit/(loss) from
continuing operations
down (65.6)%
Total net profit/(loss) down (65.6)%
Revenue from continuing
operations
up 3.2 %
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change

---

FY23 Interim Results
Six months ending 29 January 2023
ANNUAL
RESULTS
FY23
28 September 2023

Chair’s Update –Joan Withers
Group Update –Nick Grayston
Group Financial Results –Jonathan Oram
FY24 Outlook
Appendix –Additional Information
Glossary
03
08
17
30
33
40
2
CONTENTS

CHAIR’S
UPDATE
3
JOAN WITHERS

4
•We are reporting a Group sales result of $3.4 billion up 3.2% on FY22, including a record
sales result for The Warehouse of $1.9 billion in what has been a very tough economic
environment, and ending the year in a strong financial position.
•While the first half saw significant sales growth of 4.8%, this slowed in the second half to
1.4%.
•It has been a challenging trading environment with Kiwi families experiencing rising inflation,
increased cost of living and rising interest rates, which has intersected with the Group being
mid-way through a transformation programme and in a peakyear of project spend.
•The planned increase in Cost of Doing Business, in particular around IS costs, while facing
pressure on our Gross Profit Margin exacerbated our challenges. The pressures on our
Gross Profit Margin were particularly acute in the first half with higher promotional activity and
through shipping delays and congestion.
•Our response was a strategic reprioritisation with a focus on operational performance,
managing Gross Margin, reducing Cost of Doing Business, and rebalancing project spend.
•While initiatives have been put in place, we have not been able to completely offset ongoing
cost increases. However, we are pleased to have recovered some of the Gross Profit Margin
decline experienced in the first half, and our Cost of Doing Business has decreased as a
percentage of sales compared to prior year as a result of actions taken.
•We stand by our purpose of helping Kiwis live better every day and our vision to make
sustainable living easy and affordable for everyone –for the benefit of our customers, our
community, and our planet, while providing sustainable long-term return for our shareholders.
STRONG SALES IN A CHALLENGING YEAR

5
2023
AT A GLANCE
UP 3.2%
ON FY22
3,071.4
3,172.8
3,414.6
3,294.3
3,399.1
FY19FY20FY21FY22FY23
UP 10.7%
ON FY19
(2.6% CAGR)
SALES
$M
GROSS
PROFIT
$M
74.1
32.1
167.2
85.5
37.5
FY19FY20FY21FY22FY23
ADJUSTED
NPAT
1
$M
DOWN 2.4%
ON FY22
UP 10.5%
ON FY19
(2.5% CAGR)
DOWN 56.2%
ON FY22
1,028.6
1,034.9
1,241.4
1,164.4
1,136.7
33.5%
32.6%
36.4%
35.3%
33.4%
0%
10%
20%
30%
40%
0
200
400
600
800
1,000
1,200
1,400
FY19FY20FY21FY22FY23
Gross ProfitGross Profit Margin
76.2
-168.1
-160.5
41.2
48.1
FY19FY20FY21FY22FY23
NET
DEBT /
(CASH)
$M
1.FY21 Adjusted NPAT has been restated for Cloud Computing adjustments (“SaaS”).
FY19 and FY20 are not adjusted for the SaaS accounting policy change.
LIQUIDITY HEADROOM $421.9M
(FY22: $378.8M)

33% of private label sales from
products with sustainable
attributes (46,637 products
accounting for over $343 million in
sales), up from 22% in FY22.
Diverted 199 tonnes of post-
consumer waste from landfill –
Soft plastics, e-waste, ink and
toners, and other hard to recycle
items.
GHG emissions
7,657t CO2e Scope 1 and 2
emissions, decrease of 43.3%
from FY22
1
.
$4.1 million raised for New Zealand
charities and communities
($83.4 million since 1995).
Zero Waste
Diverted 72.9%operational
waste from landfill.
THE ROADMAP TO NET ZERO
100% EV Light Passenger Fleet
inFY23 –reaching our target to be
100% by 2025 2 years early.
6
6
Agreement signed with
Lodestone –for purchase of solar
generated electricity to power all sites
including stores, DCs and SSO by
2026.
XRB Aotearoa New Zealand
Climate Standards –participant in
setting the NZ Retail sector scenarios.
We are on the journey to develop
these frameworks for reporting in
FY24.
1.The significant reduction is in our Scope 2 emissions primarily due to updated emissions factors released by Ministry for the
Environment (“MfE”) in FY23, which also required a restatement of our FY20 base year, and subsequent years.While our electricity
consumption decreased 2.5% compared to FY22 and decreased 6.0% compared to FY20, the average electricity emission factor
decreased 56% in FY23 compared to FY22.

•The Group dividend policy is to distribute at least 70% of the Group's full year
adjusted net profit after tax, at the discretion of the Board, and subject to trading
performance, market conditions and liquidity requirements.
•Net debt at year end was $48.1 million, down from $83.4 million at the FY23 half year
and slightly higher than $41.2 million in FY22. Available liquidity at year end was
$421.9 million.
•We have significantly reduced our planned project expenditure
1
to $80 million for
FY24 versus $154.4 million in FY23.
•The economic environment in New Zealand continues to be challenging, and although
the Group’s largest brand The Warehouse is faring well, overall Group trading
performance remains uncertain.
•Given the return of net debt to levels that meet our target liquidity range of $350 -
$450 million, the Board is pleased to declare a final dividend of 8.0 cents per share.
•The record date for the dividend will be 16 November 2023 and will be paid on
1 December 2023.
10.0
9.0
13.0
10.0
6.08.0
17.5
10.0
8.0
5.0
16.0
17.0
35.5
20.0
8.0
FY18FY19FY20FY21FY22FY23
Historical Dividends (cps)
InterimFinalSpecial
7
FY23 FINAL DIVIDEND
1.Total project expenditure includes capital expenditure, prepayments, SaaS
expenditure and project operating expenditure.

GROUP
UPDATE
8
NICK GRAYSTON

STRATEGIC REPRIORITISATION
WE HAVE A DIVERSIFIED RETAIL PORTFOLIO PROVIDING CUSTOMERS A WIDE RANGE OF SOLUTIONS
•It has been a challenging 12 months, particularly with the poor performance from Torpedo7. Customers have felt the pinch on their disposable
income with rising inflation, cost of living, increased interest rates, and a preference shift towards services and experiences over goods.
•We planned for an increase in Cost of Doing Business, in particular around IS costs, but faced more than expected pressure onour Gross Profit
Margin through promotional activity and cost of goods while trying to deliver value to our customers. We made the conscious choice to continue the
investment to accelerate our transformation programme which drove increased CODB, particularly IS operational expenditure anddepreciation.
•After a tough first half, which saw margins and profitability impacted, we undertook a strategic reprioritisation to improve performance –protecting
the impact on our own operations and near term operating profit, pausing investment on some projects, and focussing on actions to provide
customers with products at great value.
•We are focused on reducing IS costs as we move through peak investment phase, reducing cost to serve, and improving operatingperformance.
While it’s early days we have seen some improvement come through in the second half financial performance. I am encouraged that we are better
positioned to weather the economic headwinds that we expect to continue in the year ahead.
Reduce Cost of Doing Business –roll out initiatives to
manage labour cost and realise information spend benefits
Project Expenditure –rebalance capital expenditure to align
with reprioritisation and fit within reduced envelope
Integration of TheMarket.com and Torpedo7 –bring these
brands into the Agile operating structure as planned
Growth in Grocery –including Market Kitchen and fresh
offering to deliver what customers need at competitive prices
Group membership –continue to build MarketClub and other
membership programmes to leverage competitive advantage
Focus on operational performance –minimise cost to
serve, manage gross profit margin and reduce working capital
Improving financial performance
Improving operational efficiency and customer offering
9

10
10
What we said we would doWhat we have done
Reprioritised transformation to concentrate on
EBIT delivery.
Some core system implementations are coming
to an end and we are delaying some digital
initiatives and reducing capital expenditure
going forward.
•Restructured our SSO teams to deliver $24m of annualised benefit.
•Significantly reduced the operating costs of the TheMarketwith H1 loss of $16 million
reduced to $6 million in H2. FY24 operating loss from TheMarketis expected to be less
than $5 million.
•Eliminated incremental MarketClubpromotional spend compared to $14m spent in H1.
•Deferred spend ~$30 million including CDP automation, digital wallet, and unified app,
to manage project spend while core projects are delivered –ERPFI, GOMS and ERP-
T7.
Continue to reduce store labour costs by driving
productivity improvements.
•Total employee expenses held flat as % of sales on FY22, despite wage inflation
pressures.
•TWL CODB decreased as a % of sales from 35.9% in FY22 to 33.6% in FY23.
Closure of 1-day operations and integration of
The Market and T7 into Agile.
•Closed 1-day website, exited 1-day distribution centre, and sold through
1-day inventory.
•TheMarket.com moved to Agile structure with greater focus on Group Marketplace and
we are assessing the future platform direction.
•Torpedo7 moved to Agile structure in August 2023, with a recovery plan in place, to be
reassessed at FY24 H1.
Grow profitable grocery offering while offering
affordable essentials to Kiwis.
•Increased Market Kitchen range to include 64 different products.
•Improved grocery supply chain capability.
•SKU reduction is underway.
•Improved margin management –real time pricing, reactive pricing to increased cost of
product, reduced handling through use of bulk stacks.
Closer inventory control –reduce by financial
year end.
•Significantly reduced inventory from half year with closing inventory of $493.3 million
compared to $562.3 million at FY22 and $617.8 million at FY23 H1.
•System projects commenced to further improve inventory management.
ACTIONS TAKEN IN THE SECOND HALF

SalesGross Profit
(1)
Operating Profit
(2)
FY23
$ million
FY22
$ millionVariance
FY23
$ million
% margin
FY22
$ million
% margin
Variance
vs FY22
%
FY23
$ million
% margin
FY22
$ million
% margin
Variance
vs FY22
%
1,892.4 1,726.9 9.6%708.5 696.6 1.7%71.6 75.7 -5.5%
37.4%40.3%-290 bps3.8%4.4%(60 bps)
248.6 249.7 -0.4%116.6 118.6 -1.7%23.0 23.1 -0.2%
46.9%47.5%-60 bps9.3%9.2%10 bps
1,061.0 1,096.7 -3.3%233.1 254.1 -8.2%27.3 53.9 -49.3%
22.0%23.2%-120 bps2.6%4.9%(230 bps)
162.2 171.5 -5.4%48.561.8 -21.5%(22.2)(2.2)-891.3%
29.9%36.0%-610 bps-13.7%-1.3%(1,240 bps)
33.7 50.0 -32.6%(22.0)(24.7)11.0%
1.3 (0.5)-338.9%(16.5)(9.0)-84.7%
3,399.1 3,294.2 3.2%1,136.71,164.4-2.4%61.2116.8-47.6%
11
Other
(3)
1.Total Group Gross Profit includes $30.0 million attributable to TheMarketand other group allocations.
2.Operating Profit includes the impact of SaaS but excludes the impact of NZ IFRS16 and unusual items and is a non-GAAP measure. For a reconciliation between Operating Profit and Reported
EBIT refer to Slide 19 of this presentation and Note 2 of the Financial Statements for the year ended 30 July 2023.
3.Other items in operating profit include corporate costs and other unallocated overheads.
Core Agile brands Operating Profit decreased 20% from $152.7 million to $121.9 million.
DIVISIONAL SUMMARY
$121.9m$152.7m

12
TORPEDO7 RECOVERY PLAN
We have experienced significant challenges with Torpedo7 which delivered an operating
loss for the year of $22.2 million.
•Decreased consumer demand, consistent with the global decline in the bike market,
significantly impacted sales and profitability.
•We have provided for an inventory impairment of $4.6 million against Torpedo7 to manage
excess and aged stock and have put a recovery plan in place for the business.
•Addressing Torpedo7’s performance will be a major focus for the Group for FY24, and we will
provide an update on our progress at our FY24 1H update.
Improving Gross Profit Margin
•Reducing excess inventory
•Improving bike margin through brands and range
•Increasing apparel and private label
Reducing Cost of Doing Business
•Implementing and realising benefits of new ERP
•Integration of support team in Group Store Support Office
•Closing poor performing stores
•Focus on labour productivity

ECOSYSTEM
OUR INTEGRATED
13
•Our aim is to deliver a modern, integrated retail experience grounded in our purpose
of helping Kiwis live better every day, powered by a customer-centric ecosystem that
makes shopping with The Warehouse Group easy and hassle-free while providing
more value for customers.
•Our ecosystem has strong foundations comprising our iconic brands, an established
store footprint, and market-leading digital assets.
•Our loyalty membership programme, MarketClub, is at the heart of our ecosystem.
There are now over 1.3 million MarketClub members across TheMarket.com and The
Warehouse. Throughmembership weachieve increased customer insights through
first party data.
•We are improving fulfilment capability and our cost-to-serve to our customers as part
of driving increased profitability in online and transitioning to an omnichannel model.
•Our retail media network MarketMedia, is generating new marketing and revenue
opportunities, launching in-store digital screen advertising across The Warehouse
and Noel Leeming stores, giving our brands and suppliers the opportunity to reach
customers while they are shopping.
•We are providing our customers with more payment options to help them get what
they want when they need it.

★★★★★
Customer review
103k+3P
SKUs from
71 merchants
at The
Warehouse
online
Group
GMV
1
$74.3m
1. Group Gross Merchandise Value (GMV) includes first and third party sales on TheMarket.com and Group Marketplace.
AND OUR MARKETPLACE STRATEGY
•Since its launch in 2019, TheMarket.com has grown at scale,
to develop a marketplace platform which thousands of
customers and brands want to engage with.
•We are taking the best of TheMarket.com and embedding itat
the core of our Group online strategy. As part of this strategy,
we have closed our 1-day operations and significantly
reduced stand-alone costs for TheMarket.com.
•Our Group Marketplace initiative launched in October 2022,
integrating some of the TheMarket.com products onto The
Warehouse website and app, and extending our range online,
providing over 103,000 third-party products from 71
merchants to our existing online customer base.
•Total Group GMV¹ of $74.3m in FY23, including marketplace
transactions across TheMarket.com and Group Marketplace.
•While Group Marketplace is still in its early days, we have
seen gooduptake from customers and suppliers are
responding positively to an additional channel for their
product.
14

15
MarketClub is our free-to-join membership programme that gives our
customers exclusive discounts and offers when shopping with us.
•In October 2021, we introduced MarketClub into The Warehouse, and this year we reached
a milestone of more than 1.3 million MarketClub members. Our Club members are our
most engaged customers, with the highest lifetime value.
•Currently, members can use MarketClub at The Warehouse through The Warehouse app,
our online store, or by scanning the app at our store checkouts. At TheMarket.com, we also
offer MarketClub+, a subscription service that provides free shipping on millions of eligible
items, VIP access to exclusive offers, priority customer service, and more.
•In FY23, MarketClub members saved nearly $18 million
1
with member discounts. The most
popular deals in FY23 were our $4 and $5 Tararua500g Butter, with over 220,000
customers scanning MarketClub to access the offer, proving an appetite for lower priced
grocery essentials.
•Every time a MarketClub member scans at The Warehouse, we donate a portion of the
proceeds to a charitable cause on their behalf. Since launching the platform in October
2021, we have donated over $1.6 million to various causes in New Zealand.
•MarketClub incremental promotional spend did impact margin in FY23 H1, and we have
eliminated promotional spend in the second half.
•Growing first party data across all our brands is a competitive advantage, particularly via
retail media opportunities. MarketClub is a foundational element of our ecosystem, and we
will continue to expand the platform.
15
1.Savings based on FY23 sales for MarketClubsale items Recommended Retail Price (RRP) less MarketClubsale price.
MARKETCLUB
More than
1.3M
MarketClub
members
$18m
saved by
MarketClub
members in
FY23
1

AFFORDABLE GROCERIES FOR KIWI FAMILIES
•FY23 saw our Grocery
1
range go from strength to strength as we demonstrated
our commitment to offering customers much needed value on essential
products, in all The Warehouse stores.
•Grocery sales grew 26.1% in FY23, contributing to 18.7% of The Warehouse
sales, including 91.8% growth in pantry and chilled, 26.6% growth in household
cleaning items, and 23.8% growth in pet care.
•We have taken significant steps forward in FY23, including our fresh fruit and
vegetable trial, now in 12 stores.
•Our private label Market Kitchen range now includes 64 products, helping give
Kiwis more affordable essentials and pantry staples, including our Market
Kitchen 500g salted butter for $5, and Market Kitchen 1kg coffee beans for $20.
•This year we improved our grocery supply chain capability and are reducing
SKUs. We have improved margin management with real time pricing to react to
increased cost of product, and reduced handling through the use ofbulk stacks
and shelf-ready trays.
•We continue to seek access to wholesale supply at equitable cost prices to
offer affordable groceries to Kiwi families. Legislative measures have presented
little relief so far.
1.Grocery categories include pantry, confectionery and snacks, beverages, household consumables, health and beauty, and pet care.
16

17
GROUP
FINANCIAL
RESULTS
17
JONATHAN ORAM

For the year ended 30 July 2023
1.Operating Profit includes the impact of SaaS but excludes the impact of NZ IFRS16 and unusual items and is a non-GAAP measure. For a reconciliation between Operating Profit and Reported
EBIT refer to Slide 19 of this presentation and Note 2 of the Financial Statements for the year ended 30 July 2023.
2.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.For a reconciliation between Reported and Adjusted NPAT refer to Slide 19 of this presentation and
Note 5 of the financial statements for the year ended 30 July 2023.
3.Reported NPAT refers to Net Profit After Tax attributable to shareholders of the parent.
•Sales growth of 3.2% was underpinned by a very strong first half with
sales growth of 4.8%, followed by a softer second half with sales
growth of 1.4% as cost of living impacted sales particularly in Noel
Leeming and Torpedo7.
•The Warehouse sales performed well with first half growth of 13.2%,
second half growth of 5.7%, and FY23 year growth of 9.6% -to
achieve record sales of $1.9 billion
•Gross Profit Margin declined 190 basis points compared to prior year
but saw a recovery from the first half decline of 200 basis points.
•Cost of Doing Business (“CODB”) increased in dollar terms, mainly
due to significant increases in informational systems, digital costs and
depreciation, but decreased slightly to 31.6% of total sales.
•Adjusted NPAT was $37.5 million in FY23, compared to $85.5 million
in FY22, a decrease of 56.2% and includes interest expense of
$9.1 million.
•Reported NPAT was $29.8 million in FY23, compared to $89.3 million
in FY22 due to restructuring costs and impairment of Zoom
investment.
$ million
FY23FY22Variance
Group Sales
3,399.1 3,294.3
3.2%
Gross Profit
1,136.7 1,164.4
-2.4%
Gross Profit Margin %33.4%35.3%(190) bps
Cost of doing business (“CODB”)
1,075.5 1,047.6
2.7%
CODB %31.6%31.8%(20) bps
Operating Profit
1
61.2 116.8
-47.6%
Operating Profit Margin %1.8%3.5%(170) bps
NPAT (adjusted)
2
37.5 85.5
-56.2%
NPAT (reported)
3
29.8 89.3
-66.6%
Operating Cash Flow
214.2 105.4
103.2%
Dividends (cps)
8.0 20.0
(12.0)
PERFORMANCE
GROUP
18

EBITNPAT
$ millionFY23FY22FY23FY22
Reported Earnings
88.1158.8 29.889.3
Gain on sale of property
(0.4) -(0.3) -
Restructuring costs
10.9-7.9-
Associate impairment
3.5-3.5-
Adjustments for NZIFRS16
2
(40.9) (42.0) (3.4) (3.8)
Adjusted Earnings
3
61.2116.8 37.585.5
1.To improve the understanding of underlying business performance, the Group adjusts profit for unusual and non-trading items. Unusual items include gain on sale of property, restructuring costs,
impairments, and the non-cash impact of applying the NZIFRS 16 lease accounting standard.
2.The NZIFRS16 adjustment of $40.9 million in FY23 (FY22: $42.0 million) represents the difference between the depreciation on Right-of-use-Assets and old NZGAAP rent expense. Refer to Note 2.2
of the financial statements for the year ended 30 July 2023 for further information.
3.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Reported and Adjusted NPAT can also be found inNote 5 of the financial
statements for the year ended 30 July 2023.
ADJUSTED EBIT AND NPAT RECONCILIATION
•The Group sold its Royal Oak (Auckland) store property
in July 2023 for $30.5 million as part of a sale and lease
back arrangement, which realised a gain on sale of
$0.4 million.
•Due to a decline in profitability in FY23 H1, the Group
restructured its operations to lower its cost of doing
business. Restructure costs of $10.9 million represent
staff redundancy costs, the write-off of redundant 1-day
business assets, and costs connected with the disposal
of the 1-day inventory.
•Associate impairment of $3.5 million represents
impairment of the Group’s investment in Zoom
Heathcare.
Adjustment for NZ IFRS16FY23FY22
Pre-NZ IFRS16 rent
135.9133.9
Right of use asset amortisation
(96.0)(94.6)
Gain on lease terminations
1.02.7
NZ IFRS16 impact on EBIT
40.942.0
19

FY23 RESULTS –H1 and H2
For the year ended 30 July 2023
H1H2
$ million
FY23 H1 FY22 H1Variance %FY23 H2FY22 H2Variance %
Group Sales
1,813.2
1,730.0 4.8%
1,585.91,564.31.4%
Gross Profit
592.4
599.6 -1.2%
544.3564.8-3.6%
Gross Profit Margin %
32.7%34.7%(200) bps34.3%36.1%(180) bps
Cost of doing business (“CODB”)
561.5
542.4 3.5%
514.0505.21.7%
CODB %
31.0%31.4%(40) bps32.4%32.3%12 bps
Operating Profit
1
30.9
57.2 -46.0%
30.359.6-49.1%
Operating Profit Margin %
1.7%3.3%(160) bps1.9%3.8%(190) bps
Adjusted NPAT
2
19.6
42.0 -53.4%
17.943.5-58.8%
Online sales as a % of sales
3
12.3%21.1%(879) bps
9.3%12.0%
(267) bps
1.Operating Profit includes the impact of SaaS but excludes the impact of NZ IFRS16 and unusual items and is a non-GAAP measure. For a reconciliation between Operating Profit and Reported EBIT
refer to Slide 19 of this presentation and Note 2 of the Financial Statements for the year ended 30 July 2023.
2.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.For a reconciliation between Adjusted and Statutory NPAT refer to Slide 19 of this presentation and Note 5 of
the financial statements for the year ended 30 July 2023.
3.Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 online and Gross Merchandise Value (GMV)through TheMarket.com and Group Marketplace.
•Sales growth slowed in FY23 H2 with growth decreasing from 4.8% in H1 to 1.4% in H2.FY22 H1 was impacted by COVID-19
lockdown resulting in strong growth this year. Compared to FY21 sales were flat in H1 and down 1.3% in H2.
•Gross Profit also showed signs of recovery though it fell at a greater rate than sales in both halves reflecting the decline in Gross
Profit Margin.The underlying Gross Profit Margin did improve in H2, with a decline of 180 bps versus 200 bps in H1.
•CODB increased at a slower rate in FY23 H2 versus last year with the benefit of CODB reduction initiatives.In FY23, CODB was
slightly down as a percentage of sales, compared to FY22, due to sales growth.
•Online sales continued its trend of decline but at a much slower rate with online as a percentage of sales 267 bps less in FY23 H2
versus last year, compared to an 879 bps decline in FY23 H1 due to exceptionally strong COVID-19 related online sales in FY22 H1.
20

1,683.4
1,808.3
1,730.0
1,813.2
1,489.4
1,606.3
1,564.3
1,585.9
FY20FY21FY22FY23
H1H2
$m
FY23 H1FY22 H1Variance H1FY23 H2FY22 H2Variance H2FY23FY22
Variance
FY23 vs FY22
The Warehouse
1,013.7 895.4 13.2%878.7 831.5 5.7%1,892.4 1,726.9 9.6%
Warehouse Stationery
124.1 122.0 1.7%124.5 127.7 -2.5%248.6 249.7 -0.4%
Noel Leeming
556.7 582.7 -4.5%504.3 514.0 -1.9%1,061.0 1,096.7 -3.3%
Torpedo7
96.4 97.5 -1.1%65.8 74.0 -11.1%162.2 171.5 -5.4%
Other
1
22.3 32.4 -31.2%12.6 17.1 -26.3%34.9 49.5 -29.5%
Total Group Sales
1,813.2 1,730.0 4.8%1,585.9 1,564.3 1.4%3,399.1 3,294.3 3.2%
•The Warehouse and Warehouse Stationery were the brands most impacted in
FY22 H1 by COVID-19 lockdowns.
•The Warehouse saw significant sales growth in H1, up 13.2%, followed by
softer growth of 5.7% in H2, with FY23 sales growth of 9.6%, and a record
$1.9 billion.
•Warehouse Stationery started the year with 1.7% growth in H1, finishing with
FY23 sales decline 0.4%. Office furniture and print and consumables
categories drove sales weakness over FY23.
•Noel Leeming was impacted by New Zealand wide trend of decreased spend
on discretionary items in H1 with sales decline 4.5%, but this rate of decline
slowed in H2 with sales down 1.9%.
•Torpedo7 was most impacted by declining global demand in bikes and other
high cost discretionary items, down 1.1% and 11.1% in H1 and H2,
respectively, albeit after five very strong years of sales growth underpinned by
store growth from 11 stores in FY18 to 25 stores in FY23.
1.Other sales includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding Gross Merchandise Value(GMV)), and other Group operations and eliminations.
FY23 SALES –HALF YEAR SALES TREND
4.8%1.4%
Sales ($million)
21

42.1%
48.3%
23.3%
37.9%
40.3%
47.5%
23.2%
36.0%
37.4%
46.9%
22.0%
29.9%
The WarehouseWarehouse StationeryNoel LeemingTorpedo7
FY21FY22 FY23
Gross Profit Margin by Brand
GROSS PROFIT MARGIN
•Group Profit Margin was 33.4% for FY23, with a margin decline in FY23 H2
of 180 basis points versus 200 basis points in FY23 H1. Although an
improvement, this is still down from 35.3% in FY22, and we continue to put
in place further initiatives to recover this.
•The decline in Gross Profit Margin was largely attributable to The
Warehouse with some contribution from Noel Leeming and Torpedo7.
Group Gross Profit Margin movement
FY22 to FY23
33.1%
33.5%
32.6%
36.4%
35.3%
33.4%
27.3%
27.1%
26.5%
29.9%
29.8%
28.4%
FY18FY19FY20FY21FY22FY23
Group Gross Profit MarginGroup Gross Profit Margin - excl TWL
Gross Profit Margin –excluding TWL
22

IMPACT ON GROSS PROFIT MARGIN
The Warehouse –Gross Profit Margin
FY22 to FY23
The Warehouse –Category sales movement year on year
Category sales as % of total sales
Category Sales
FY23 vs FY22
FY23FY22
Grocery
1
18.7%16.3%26.1%
Home
21.1%21.4%8.2%
Apparel
14.0%14.5%5.9%
Other
46.2%47.7%5.7%
Total Sales
100.0%100.0%9.6%
•Gross Profit Margin declined 370 basis points in the first half to
36.3% but recovered significantly in the second half with a
comparative decline of 200 basis points, resulting in full year
Gross Profit Margin of 37.4%, compared to 40.3% in FY22, a
290 basis points decline.
•In the second half the incremental Market Club promotional
spend was eliminated and detention charges were no higher
than historical levels.
•Product mix continued to impact margin with the increase in
sales of Grocery, up 26.1% in the year to make up 18.7% of
total The Warehouse sales.
1.Grocery categories include pantry, confectionary and snacks, beverages, household consumables, health and beauty, and pet care.
FY22
Market
Club
Promo
Other
Promo
Category
mix
OnlineDetentionOtherFY23
H1
40.0%(1.4%)(1.2%)(0.9%)0.3%(0.4%)(0.2%)36.3%
H2
40.7%0.3%(2.1%)(1.2%)0.4%0.1%0.4%38.7%
FY23
40.3%(0.6%)(1.6%)(1.0%)0.4%(0.2%)0.1%37.4%
23

Torpedo7 EBIT Loss ($million)
FY22 to FY23
EBIT CHALLENGES AND INSIGHTS
35.6%
24.6%
8.6%
13.2%
6.7%
3.7%
7.6%
Cycle
Outdoor (incl. apparel)
Fitness
Water (incl. apparel)
Snow (incl. apparel)
Footwear
Other
Torpedo7 Category Mix (Sales)
•Torpedo7 experienced a significant decline in EBIT over FY23, after being on a path to breakeven.There were
many factors across Gross Profit Margin and Cost of Doing Business.
•In Gross Profit Margin, there has been a major dislocation of the bike market; snow and water categories were
impacted by weather; and water categories were impacted by increased levels of competition.
•Cost of Doing Business has increased as capability has been built to support store network growth, increased
depreciation of new store fixtures and fittings, and a new ERP implementation.
Gross Margin impactCODB impact
24

17.5%
16.9%
1.6%
2.0%
3.9%
3.8%
8.8%
8.9%
FY22FY23
Employee ExpenseDepn & Amortisation Expense
Lease ExpenseOther Expense
GROUP COST OF DOING BUSINESS
1.Cost of Doing Business is presented excluding the impact of NZ IFRS16.
2.Lease expenses excludes the impact of NZ IFRS16 and includes rent received and COVID-19
rent relief received.
CODB Movement ($million) –FY22 to FY23
CODB as % of sales
31.8%
31.6%
31.8%
31.6%
•CODB
1
was up $27.9 million, or 2.7%, from FY22 mainly
due to depreciation and information system costs, included
in Other Expenses due to the significant increase in project
spend over the last few years.
•Employee expense for the year is slightly down, and as a
percentage of sales, down 60 basis points, post Store
Support Office restructuring and store productivity
initiatives.
•Lease expense
2
was up 3.0% as the impact of inflation
flowed through lease expense.
25

INFORMATION SYSTEMS & DIGITAL COSTS
1.FY19 and FY20 are not adjusted for the SaaS accounting policy change.
36.4
42.5
37.8
37.9
63.3
21.2
31.4
21.7
36.4
42.5
59.0
69.3
85.0
FY19FY20FY21FY22FY23
Operating expenditureSaaS expenditure
24.6
32.6
29.4
45.2
42.4
3.6
8.1
11.2
24.6
32.6
33.0
53.3
53.6
FY19FY20FY21FY22FY23
CapexPrepayments
CAPEX –Information Systems and Digital
1
($million)
OPEX –Information Systems and Digital
1
($million)
•Information systems and digital operating costs have increased with project spend as systems are
implemented and go-live.
•Though project spend has been through its peak in FY23, operating expenditure is expected to peak in
FY24 as core projects go-live.
26

$ million
FY23FY22Variance
Inventory
493.3 562.3
(69.0)
Trade and other receivables
97.0 99.5
(2.5)
Trade and other payables
(407.2)(480.5)
73.3
Provisions
(71.7)(71.0)
(0.7)
Working Capital
111.4110.3
1.1
Associate
-3.8
(3.8)
Fixed Assets
317.6 303.2
14.4
Funds Employed
429.0417.3
11.7
Tax Assets
93.590.7
2.8
Derivatives
(2.1)28.8
(30.9)
Right of Use Assets
661.0673.3
(12.3)
Goodwill and Brands
73.0 73.0
-
Capital Employed
1,254.41,283.1
(28.7)
Shareholders’ Equity
402.1421.9
(19.8)
Minority Interests
1.0 (0.8)
1.8
Net Debt / (Cash)
48.1 41.2
6.9
Net Lease Liability
803.2 820.8
(17.6)
Sources of Funds
1,254.41,283.1
(28.7)
Liquidity
421.9378.843.1
•Working capital increased marginally over the course of FY23
but within that was a significant reduction in inventory, down
$69.0 million to $493.3 million.
•A part of the reduction in inventory was a normalisation of goods
in transit, which decreased from $94.1 million to $65.4 million.
This reduction reflected a return to previous shipping transit
times and reduction in port congestion.
•Offsetting this reduction in inventory was a decrease in trade
and other payables, reflecting lower inventory purchasing and a
change in product and brand mix.
•Fixed assets increased $14.4 million due to an increase in store
development, notably Warkworthin FY23, and investment in
core systems and digital platforms, offset by sale of Royal Oak
property under a sale and lease back arrangement.
•Net Debt increased from $41.2 million to $48.1 million at year
end, but a significant reduction from $83.4 million at half year.
•Committed bank facilities were $470.0 million at FY23, providing
liquidity of $421.9 million, versus the Group’s target liquidity
range of $350 million to $450 million.
As at 30 July 2023
BALANCE SHEET
27

$ million
FY23FY22Variance
Trading EBITDA
1
264.7 304.9
(40.2)
Working Capital
12.4(117.5)
129.9
Restructuring costs
(10.9)-
(10.9)
Taxes Paid
(11.0)(42.5)
31.5
Interest Paid (incl. lease interest)
2
(44.1)(36.8)
(7.3)
Other items
3.1(2.7)
5.8
Operating Cash Flow
214.2 105.4
108.8
Capital Expenditure
3
(115.1)(107.5)
(7.6)
Divestments -PPE
30.7 0.5
30.2
Acquisitions
(0.7)(6.2)
5.5
Lease principal repayments
(101.2)(98.3)
(2.9)
Dividends Received
0.1 0.4
(0.3)
Dividends Paid
(35.0)(96.0)
61.0
Other
0.1 -
0.1
Net Cash Flow
(6.9)(201.7)
194.8
Closing Net Cash / (Net Debt)
(48.1)(41.2)
(6.9)
1.Trading EBITDA represents Earnings before interest, taxation, unusual items, depreciation and amortisation.
2.Interest paid includes $36.2m interest on lease liabilities (FY22: $36.7m) . Refer to Note 3.6 of the Financial
Statements for the year ended 30 July 2023.
3.Capital expenditure is presented after the impact of Cloud Computing adjustments (“SaaS”) and is part of
total project spend of $154.4 million in FY23 (refer to Slide 29).
•Operating cash flow increased 103.2% to $214.2 million, with a
decrease in trading EBITDA offset by a significant improvement in
working capital movement due to decreased inventory, increased
receivables and decreased payables.
•Capital expenditure cash flow was $115.1 million in FY23,
compared to $107.5 million in FY22. Capital expenditure peaked
this year as we come towards the end of many systems investment
programmes.
•Interest paid on borrowings increased $7.3 million compared to
FY22 due to higher average debt during the year.
•During the year we sold the Royal Oak property which was one of
our owned store sites. The property was sold for $30.5 million
under a sale and lease back arrangement with the proceeds being
used to reduce debt.
•Dividends payments were lower in FY23 with no interim dividend
declared. Dividends paid comprise of $35.0 million being the FY22
final dividend of 10.0 cents per share paid during the year.
CASH FLOW
For the year ending 30 July 2023
28

$million
FY23
Capex Spend
FY23
Prepayments
FY23
SaaS spend
FY23
OpexSpend
FY23
Total Project
Core Systems
15.411.216.23.646.4
Store Development
26.6---26.6
Other IS
20.1-3.72.226.0
Digital and Customer
6.9-1.81.410.1
Supply Chain
10.9---10.9
Other
33.30.20.20.734.4
Total Project Spend
113.211.421.97.9154.4
PROJECT EXPENDITURE
•Capital expenditure was $113.2 million
1
in FY23, compared to $107.5 million in FY22. Total project expenditure
2
was $154.4 million
on these projects in FY23.
•Core Systems investment included delivery of ERP Finance and Inventory, Group Order Management System, Warehouse
Management System, Master Data Management, and the delivery of our new people and HR system, Human Capital Management.
•Store development continued in FY23, but at a lesser pace than in FY22. New stores included the new Warkworthretail centre, a
new Torpedo7 store in Botany, and the relocation of Torpedo7 Christchurch to a bigger site. Our SWAS integration programme
included the development of a further 5 stores in FY23, bringing the total number of SWAS stores to 40.
•FY24 total project expenditure is capped at $80 million, with capital expenditure (including prepayments) expected to be between
$60 million to $70 million.
For the year ending 30 July 2023
13.6%
23.5%
17.8%
6.1%
9.6%
29.4%
Capital
Expenditure
$113.2m
1.The difference between Capital Expenditure of $113.2 million and Capital Expenditure per Statement of Cash Flows of $115.1 million is due to timing of accruals and creditor payments.
2.Total project expenditure includes capital expenditure, prepayments, SaaS expenditure and project operating expenditure.
29

FY24 OUTLOOK
30
30

31
•While FY23 has been a challenging year, our initiatives to improve operational performance and reduce our CODB have strengthened
our position. We are optimistic we will maintain this momentum into FY24, and our focus on improving financial performance will
continue.
•FY24 has started with softer sales than expected, but with Gross Profit in line with expectations.We remain cautious about the outlook
as we approach our busiest time of the year.
•The business has planned its cost base and inventory purchasing considering this uncertainty. We will continue to adapt our trading
plan to the market conditions as sales build through to Christmas.
•Torpedo7 is our most challenged brand, and we will be reporting on the performance against our recovery plan at half year.
•We have rationed project expenditure to a cap of $80 million in FY24 with a focus on delivering major projects that are in flight.
FY24 OUTLOOK
31

THANK YOU
HELPING KIWIS LIVE
BETTER EVERY DAY
32

ADDITIONAL INFORMATION
APPENDIX
33

55.7%
7.3%
31.2%
4.8%
1.0%
(1)
FY23 Group Sales
$3,399.1m
1.Other sales (1.0%) includes revenue from TheMarket.com (excluding Gross Merchandise Value (GMV)), sales
through 1-day.co.nz, and other Group operations and eliminations.
2.Operating Profit excludes the impact of NZ IFRS16 and unusual items and is a non-GAAP measure. For a
reconciliation between Operating Profit and Reported EBIT refer to Slide 19 of this presentation and Note 2 of the
Financial Statements for the year ended 30 July 2023.
3.Other items in operating profit include corporate costs and other unallocated overheads.
Divisional Summary
$162.2m
$1,892.4m
$1,061.0m
$248.6m
9.6%(0.4%)(3.3%)(5.4%)
FY23 Operating Profit
(2)
($million)
Other
(3)
TOTAL
GROUP
Core Agile Brands $121.9m
34

•Sales were up 9.6% vs FY22. Prior year was impacted by COVID-19
restrictions, resulting in decreased foot traffic, stock availability, and restricted
supply chain.
•Online sales decreased compared to last year driven by a decrease in
conversion from 2.6% in FY22 to 1.5% in FY23, as FY22 saw record-high online
sales from extended lockdowns. Decline in online sales reflects customers
moving back to stores.
•Store foot traffic was up 17.6% vs FY22 leading to an increase of 14.4%
intransactions, offset byconversion being down 1.5%. The foot traffic increase
was seen mostly in the first half of the year due to comparing to the COVID-19
restrictions of the prior year.
•Grocery enjoyed another growth year with Pantry and Chilled category sales
increasing more than 90%, resulting in total Grocery sales increasing 26.1%
compared to FY22 and now making up 18.7% of total The Warehouse sales.
•Poorer performing categories included Sporting goods and some Seasonal
areas due to a wet summer and late winter.
•Gross Profit Margin was down 290 bps. The majority of this variance occurred in
H1 with an improvement in H2, but continuation of category mix change
withsales growth in lower margin categories such as Grocery and Tech.
•CODB increased by $16.0 million due to increases in rent and support office
costs due to recent investment in technology platforms are offset by savings in
store labour and fulfilment centre.
•Two store closures (South City and SnellsBeach) offset by the opening of
Warkworthbrings total stores to 88.
$million
FY23FY22Variance
Sales
1,892.4 1,726.9
9.6%
Gross Profit
708.5696.6
1.7%
Gross Margin %37.4%40.3%(290)bps
Cost of Doing Business (CODB)
636.9620.9
2.6%
CODB %33.6%35.9%(230)bps
Operating Profit
71.675.7
(5.5%)
Operating Margin %3.8%4.4%(60)bps
Online sales
119.0181.3
-34.4%
Online as a % of sales
6.3%10.5%
(421)bps
Click and Collect as % of online sales
47.8%45.9%
187bps
Number of stores
8889
(1)
NEW ZEALAND’S LEADER ON VALUE
For the year ended 30 July 2023
35

•Sales were down 0.4% vs FY22. Whilst in-store andonline transactions were
strong with growth of 9.0%, this was offset with a significant reduction in
average basket size of 9.6% compared to FY22.
•Online sales decreased 35.4% compared to the prior period, driven by COVID-
19 lockdown forcing a shift to the online channel, especially in FY22 H1. Click &
Collect sales were down 52.9%, making up 18.7% of online sales.
•Office Furniture, Print and Consumable categories have been softer in FY23,
post COVID-19 heightened spending, and changing printer technology.
•Print & Copy Centre achieved its best sales year in FY23, which has helped to
partially offset the deterioration in overall Margin.
•Gross Profit decreased 1.7% to $116.6 million, through lower sales volumesand
rebates, increased clearance activity in Q4 and a change in sales mix with lower
proportion of high margin product sales (eg: office furniture).
•CODB decreased by 2.1% due to a focused effort to reduce labour in stores as
well as reduction inlease costs and advertising.
•Operating Profit decreased 0.2% to $23 million, with Operating ProfitMargin
increasing +10bps to 9.3%.
•Warehouse Stationery Auckland CBD and Johnsonville were closed during the
year, while 5 SWAS integrations were implemented in FY23, including Lower
Hutt, Palmerston North, Timaru, Warkworthand Chartwell, bringing the total
SWAS stores to 40.
For the year ended 30 July 2023
$million
FY23FY22Variance
Sales
248.6 249.7
-0.4%
Gross Profit
116.6 118.6
-1.7%
Gross Margin %46.9%47.5%(60)bps
Cost of Doing Business (CODB)
93.6 95.5
-2.1%
CODB %37.6%38.3%(70)bps
Operating Profit
23.0 23.1
-0.2%
Operating Margin %9.3%9.2%10bps
Online sales
22.1
34.3
-35.4%
Online as a % of sales
8.9%
13.7%
(483)bps
Click and Collect as % of online sales
18.7%
25.6%
(693)bps
Number of stores
66
68
(2)
GET THE SMALL STUFF RIGHT
36

For the year ended 30 July 2023
$million
FY23FY22Variance
Sales
1,061.0 1,096.7
-3.3%
Gross Profit
233.1 254.1
-8.2%
Gross Margin %22.0%23.2%(120)bps
Cost of Doing Business (CODB)
205.8 200.2
2.8%
CODB %19.4%18.3%110bps
Operating Profit
27.3 53.9
-49.3%
Operating Margin %2.6%4.9%(230)bps
Online sales
118.1178.3
-33.7%
Online as a % of sales
11.1%16.3%
(512)bps
Click and Collect as % of online sales
62.9%57.7%
522bps
Number of stores
6768
(1)
BEST OF TECH AND GLOBAL BRANDS
•Sales were down 3.3% vs FY22 as high cost of living continued to drive tough
market conditions and impact customers discretionary income.
•While FY22 saw country wide COVID-19 lockdowns, FY23 saw customers return to
stores, with Noel Leeming foot traffic increasing 13.1%.
•Online sales have normalised to pre-COVID-19 shopping patterns, making up to
11.1% of total sales. Click & collect remained our customers’ most popular
fulfilment option, accounting for 62.9% of online sales fulfilment, up from 57.7% in
FY22.
•The financial pressures faced by many customers resulted in decreased demand
for bigger ticket items leading to a decline in year on year sales across Whiteware,
TV and Computers. Growth categories included Communications, Smart Home and
Gaming categories as a result of strong product offering and availability.
•Gross Profit Margin % was 22.0%, decreasing 120bps from FY22, due to higher
sales in lower margin categories and an increasingly competitive environment.
•CODB 2.8% higher than FY22 due to increased rent and other recharges to the
Brand.
•The Noel Leeming George St, Dunedin store closed during the year.
37

•Sales were down 5.4% vs FY22 , driven by a number of factors including
lapping strong COVID-19 driven sales, a major dislocation in the bike market
and unseasonal weather.
•These conditions particularly impacted our Cycle, Water and Snow categories.
Fitness also saw a decline, the result of post-COVID-19 lock down softening in
demand for such products.
•Store foot traffic increased 13.9% as customers returned to shopping in store.
Store Sales increased 8.1% due to the annualisationof new stores opened in
FY22 (Invercargill, Whangarei, Petone), and the new Botany store in FY23.
•Online sales decreased 28.9% as COVID-19 lock down periods drove elevated
online sales last year. Click & Collect remains a popular option for customers,
accounting for 49.6% of online Sales, up 340bps. Torpedo7 has the highest
online penetration of sales within the Group.
•Gross Profit Margin was impacted by the dislocation of the bike market, snow
and water categories impacted by weather, and water categories were impacted
by higher levels of competition.
•As at FY23 we have provided for an inventory impairment of $4.6 million against
Torpedo7 to manage excess and aged stock. We have a recovery plan in place
for the business and this will be a major focus in FY24.
•Cost of Doing Business has increased as capability has been built to support
store network growth, depreciation of store fixtures and fittings and a new ERP
being implemented.
•During the year we opened one new store in Botany, Auckland.
For the year ended 30 July 2023
$million
FY23FY22Variance
Sales
162.2 171.5
-5.4%
Gross Profit
48.5 61.8
-21.5%
Gross Margin %29.9%36.0%(610)bps
Cost of Doing Business (CODB)
70.7 64.0
10.5%
CODB %43.6%37.3%630bps
Operating Profit
(22.2)(2.2)
891.3%
Operating Margin %-13.7%-1.3%(1,240)bps
Online sales
42.9
60.6
-29.2%
Online as a % of sales
26.4%
35.3%
(890)Bps
Click and Collect as % of online sales
49.6%
46.2%
340bps
Number of stores
25
24
1
SEE YOU OUT THERE
38

ERPFI
Oracle Fusion Finance and Inventory (ERPFI) to replace
legacy systems in The Warehouse, Warehouse Stationery
and Noel Leeming. Release 2 Solution Build and User
Acceptance testing were completed in July 2023.End to End
testing and cut over process are areas of current focus.
Likely go-live date in FY24 H2.
GOMS
Group Order Management System is dependent on ERPFI.
It will significantly improve online ordering and fulfilment from
any group location, cost management, and automated
customer support.
Go-live date late FY24 / early FY25.
SIGNIFICANT PROGRESS ON CORE SYSTEMS
MDM
Human
Capital
Management
Torpedo7
ERP
Master Data Management continues to be a cornerstone
capability for all new technology infrastructure projects.
We expect to incorporate dimension and supplier data in
FY24.
HCM is the HR module in ERPFI. Go-live was completed in
August 2023.Deployed for all Group employees, this
release includes employee self-service capability, and
automation of our recruiting and new employee onboarding
processes.
Project involved replacement of Accredowith Microsoft
Dynamics 365 as a business-wide ERP. All system build,
data migration and testing was completed in FY23.
We anticipate go-live earlyFY24.
WMS
Utilising our new warehouse systems is beginning to deliver
productivity improvements and a number of operational
initiatives have been identified that will be deployed in FY24.
39

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 Limited
GMVGross Merchandise ValueWALTWeighted Average Lease Tenure
GOMSGroup Order Management System WMSWarehouse Management System
LTVCustomer Lifetime ValueWSWarehouse Stationery
GLOSSARY
40

DISCLAIMER
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 annual financial
statements for the year ended 30 July 2023, 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.
41

---

1

_________________________________________________________________________________

To: NZX Limited
_________________________________________________________________________________


Auckland, Thursday 28 September 2023

The Warehouse Group FY23 annual result announcement
Strong sales at The Warehouse in a challenging year
Highlights
• Group sales of $3.4 billion, up 3.2% on prior year, including record sales result for The
Warehouse of $1.9 billion, up 9.6% on prior year
• FY23 gross profit margin decreased 190 basis points compared to FY22 but an
improvement on FY23 H1
• Reported Net Profit After Tax of $29.8 million – down 66.6% on prior year
• Adjusted Net Profit After Tax of $37.5 million – down 56.2% on prior year
• Operating cash flow improved 103.2% from FY22 to $214.2 million in FY23
• Net debt of $48.1m and available liquidity of $421.9 million as at FY23
• Final dividend of 8.0 cents per share declared

The Warehouse Group Limited ("the Group") today announced its full-year result for the year ended
30 July 2023. The Group achieved sales of $3.4 billion, up 3.2% from FY22, including $1.9 billion sales
for The Warehouse, up 9.6% from the previous year. This marks the highest annual sales in The
Warehouse's history, demonstrating New Zealanders’ need for value in the current climate.
Adjusted Net Profit After Tax (NPAT) was $37.5 million, representing a 56.2% decrease compared to
FY22, with inflation significantly impacting margin and driving up cost of doing business (CODB),
during a year of planned investment in critical infrastructure for the Group.
The Warehouse Group CEO, Nick Grayston, said he was pleased with the resilience of The
Warehouse and Warehouse Stationery and said the Group has continued to support our customers
in a challenging year.
"It’s been a tough year for both us and our customers. We're proud to have kept the essentials
affordable for families and strong sales at The Warehouse reflect this.
"We continue to invest in the transformation of the Group, particularly in infrastructure. This has
coincided with much weaker consumer confidence and a shift in spending, especially big-ticket
items, to travel and entertainment. These factors have compromised our margin and profitability
and particularly affected Noel Leeming and Torpedo7.

2

“While we remain committed to our strategy, the alignment of these events has put pressure on our
business and led to a disappointing overall result for FY23.
"Torpedo7 represents 4.8% of Group sales and has been hit by the global decline in the bike market
and weather impacting snow and water categories. This has resulted in a substantial Torpedo7
operating loss of $22.2 million in FY23 and significantly impacted our Group result,” Mr Grayston
said.
"Our immediate focus is to address Torpedo7’s performance by improving gross margin and
reducing excess stock and the business’s cost base. We have a big challenge in front of us. We know
Kiwis love the outdoors, so we believe it’s a category worth fighting for. This will be a major focus for
FY24, and we will provide an update at our half year.
"In the FY23 second half we have taken extensive action to strengthen our overall financial position.
I am encouraged that we are in a better place to weather the economic headwinds expected in the
year ahead and wish to thank our team members for their hard work so far in helping get the Group
back on track.” Mr Grayston said.
Group performance
Gross profit margin was 33.4% for FY23, a decrease from 35.3% in FY22, and an improvement from
32.7% in FY23 H1. Gross profit margin improved from a first half decline of 200 basis points
compared to the prior period to a second half decline of 180 basis points compared to the prior
period.
The Group's adjusted NPAT (Net Profit After Tax) for FY23 was $37.5 million, a decrease of 56.2%
compared to $85.5 million in FY22, resulting from decreased operating profit and increased interest
expense during the year. Reported NPAT was $29.8 million in FY23, down from $89.3 million in FY22,
impacted by restructuring costs and associate impairments.
CODB increased 2.7% or $27.9 million in FY23 but decreased as a percentage of sales from 31.8% in
FY22 to 31.6% in FY23 due to the actions taken to reprioritise spending. FY23 saw record project
spend of $154.4 million (including capital and operating expenditure) to address the necessary
investments in infrastructure and systems. The Group is now through peak project spend on systems
and expects total project spend of $80 million in FY24.
Employee expenses decreased by 0.2%, while lease expenses increased by 3.0% as inflation flowed
through to some of our leases. The Group remains focused on improving operational performance
through initiatives to manage labour costs and realise infrastructure investment benefits.
Brand performance
All our brands saw customers return to in-store shopping post-COVID-19 restrictions, resulting in a
14.2% increase in foot traffic overall in FY23. Online sales have normalised to pre-COVID-19 levels,
accounting for 10.9% of total sales
1
.
The Warehouse reported a 9.6% increase in sales, reaching $1.9 billion, a record high. Online sales
decreased 34.4%, resulting in online sales making up 6.3% of The Warehouse's total sales. In-store

1
Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 online and Gross Merchandise Value (“GMV”)
through TheMarket.com and Group Marketplace.

3

foot traffic rose by 17.6%. The Warehouse gross profit margin decreased by 290 basis points to
37.4%, with an operating profit of $71.6 million, down 5.5% on FY22.
Warehouse Stationery sales decreased slightly by 0.4% to $248.6 million. In-store transactions
experienced strong growth of 9.0% in FY23, while online sales decreased 35.4%, resulting in online
sales making up 8.9% of total Warehouse Stationery sales. Warehouse Stationery gross profit margin
decreased by 60 basis points to 46.9%, and operating profit was $23.0 million, down 0.2% on FY22.
Five stores were integrated into The Warehouse stores, bringing the total number of Warehouse
Stationery Stores within a Store (SWAS) to 40.
Noel Leeming r
eported a 3.3% decline in sales, totalling $1,061.0 million in FY23. Foot traffic
increased by 13.1%, and online sales decreased by 33.7%. Online sales made up 11.1% of total Noel
Leeming sales, returning to pre-COVID-19 levels. Noel Leeming's 1-hour click and collect service
remained popular, representing 62.9% of online sales, up from 57.7% in FY22. Noel Leeming gross
profit margin decreased by 120 basis points to 22.0% due to cost pressure and increased
promotions, and operating profit was $27.3 million, down 49.3% on FY22.
Torpedo7 s
aw a 5.4% decline in sales, amounting to $162.2 million in FY23. In-store foot traffic
increased by 13.9%, while online sales decreased by 29.2%. Online sales made up 26.4% of total
sales. Torpedo7 gross margin decreased by 610 basis points to 29.9%, with an operating loss of $22.2
million.
TheMarket.com h
as been part of our online ecosystem since 2019. In October 2022, the Group
launched Group Marketplace, integrating selected third-party products from TheMarket.com
website onto The Warehouse website and app. Group Marketplace now offers customers 103,000
products from 71 merchants and gross merchandise value delivered a total of $74.3 million across
TheMarket.com and Group Marketplace in FY23.
Affordable groceries for Kiwi families
"Rising food prices have been a harsh reality for Kiwi families and we have been working hard to
offer groceries at affordable prices. Our grocery sales
2
grew 26.1% in FY23 as Kiwi families chose The
Warehouse more often to find much-needed value on the essentials”, said Mr Grayston.
"Overall grocery is now contributing 18.7% of The Warehouse's total sales. We have experienced
91.8% growth in pantry and chilled, 26.6% in household cleaning items, and 23.8% in pet care.
"Highlights include the positive feedback from our customers in the 12 stores where we’ve been
trialling fresh fruit and vegetables and the expansion of our private label Market Kitchen range to
include 64 products, including $5 Market Kitchen 500g butter and 1kg coffee beans for $20.
"We continue to take a considered approach to grocery expansion, with recent legislative measures
offering no resolution to the lack of access to wholesale supply at fair prices. The challenge to
provide affordable essentials for Kiwi families is huge and we’re up against some very big players
who are very comfortable with the status quo. We are not, and we will keep fighting to offer better
value.” Mr Grayston said.


2
Grocery categories include pantry, confectionery and snacks, beverages, household consumables, health and beauty, and pet care.

4

Retail Media expansion
The Warehouse Group's retail media network, MarketMedia, enables suppliers and advertisers to
engage with New Zealand's largest integrated retail audience directly.
"This is a meaningful step forward in the Group's efforts to grow retail media revenue. We look
forward to allowing advertisers and suppliers to reach customers on our in-store digital screen
network while they shop, with many suppliers already placing forward bookings," Mr Grayston said.
Making sustainable living easy and affordable
"FY23 was a year of important progress on our vision to make sustainable living easy and affordable
for everyone. We now sell over 46,600 products with one or more sustainable attributes, making up
33% of our private label sales, up from 22% in FY22. Furthermore, 43% of our private label sales
were derived from products with packaging that is compostable, or which can be recycled via New
Zealand's kerbside recycling infrastructure or instore, up from 22% in FY22.
“In FY23, the Group diverted 72.9% of our operational waste to recycling and we helped our
customers recycle 199 tonnes of post-consumer waste through our soft plastics, e-waste, and ink
and toner recycling programmes.
“We’re also very pleased to be switching to solar with our new partnership with Lodestone Energy
so that the Group’s stores and operational sites will be solar powered by 2026”, said Mr Grayston.
Cash and liquidity
Operating cash flow increased 103.2% in FY23, to $214.2 million, contributing to a net debt position
of $48.1 million at year-end, a significant reduction from $83.4 million at half-year.
Committed bank facilities were $470.0 million at the end of FY23, providing available liquidity of
$421.9 million, up from $378.8 million in FY22 and well within the Group's target range of $350
million to $450 million, strengthening the Group's financial position.
Inventory levels decreased $69.0 million to $493.3 million as at the end of FY23. Part of the
reduction in inventory was a normalisation of goods in transit, which decreased from $94.1 million
to $65.4 million at year-end. This reduction reflected a return to previous shipping transit times and
reduced port congestion.
Dividend announced
Chair Joan Withers confirmed that the Board has declared a fully imputed final dividend for the FY23
year of 8.0 cents per share, in line with the Group's policy to distribute at least 70% of adjusted net
profit after tax. The final dividend will be paid on 1 December 2023 to shareholders on the register
on 16 November 2023.
Outlook
"The actions we have taken to improve operational performance and gross margin and reduce our
cost base have strengthened our financial position at year-end, and these initiatives remain a key
focus as we move into FY24.

5

“FY24 has started with softer sales than expected, whilst our gross profit margin is meeting
expectations. Torpedo7 is our most challenged brand, and we will be reporting on the performance
against our recovery plan at half year.
“We have also capped project expenditure to $80 million in FY24 with a focus on delivering major
projects that are in flight.
"Looking ahead to our busiest time of year, we remain cautious. We will continue to adapt our
trading plan to meet market conditions as sales build through peak season,” Mr Grayston said.

ENDS

More information about The Warehouse Group’s result, financial performance by brand, strategy
and operations can be found in the 2023 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 Kim Russell, kim.russell@thewarehouse.co.nz
+64 94 883 285 or +64 21 452 860
Media: Lizzie Havercroft, Corporate Affairs Partner
media.enquiries@thewarehouse.co.nz
+64 27 507 0613

---

INTEGRATED
ANNUAL
REPORT
2023

Joan Withers
Board Chair
27 September 2023
Dean Hamilton
Audit and Risk Committee Chair
27 September 2023
04
06
08
10
12
14
16
26
28
30
32
36
40
44
48
52
60
62
68
83
90
106
110
114
117
2023 at a Glance
Chair’s Report
CEO’s Report
Our Purpose, Vision and Values
Our Ecosystem
Our Stores
Our Brands
Supporting Our Communities
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
Caring For Our Environment Manaaki Taiao
Global Reporting Initiatives (GRI) Report
Financial Statements
Notes to the Financial Statements
Independent Auditor’s Report
Governance Report
Statutory Disclosures
GRI Content Index
Ernst & Young Report – GRI
Directory
CONTENTS
The Warehouse Group Board and Leadership Squad are
pleased to present our FY23 Integrated Annual Report
32The Warehouse Group Integrated Annual Report 2023Contents

2023
AT A GLANCE
CUSTOMER
of senior leaders
are female
Gender pay
equity
50%
101%
GENDER
EQUALITY
Group
in-store NPS
up 2.6pts from FY22
and in-store sales
up 9.7% from FY22
76.3pts
Gender equity is a
core focus for us,
and we’re pleased
to maintain gender
pay equity at Group
level.
Our customers
are increasingly
coming into our
stores and enjoying
their experience.
We are committed
to developing a full
product and service
integrated retail
experience across
our brand websites,
apps and in store.
We have achieved
a strong full year
sales result but a
challenging financial
performance as
profitability was
compromised with
decreased margin
and increased cost of
doing business.
PERFORMANCE
$
Group sales
up 3.2%
on prior year
$
3.4b
Adjusted NPAT
down from $85.5m
in FY22
$
37. 5m
$
48.1m
Reported NPAT
down from $89.3m
in FY22
Net debt
compared to $41.2m
in FY22, $83.4m in FY23H1.
Liquidity $421.9m
$29.8
m
Foot traffic
14.2%
Group online sales
Group Click
& Collect sales
making up 10.9% of total
Group sales in FY23
making up 51.8% of omnichannel
online sales in FY23
$376.4m
$156.6m
33%
We are making
progress on our
vision to make
sustainable living
easy and affordable
for everyone and
on our ambition
to achieve zero
emissions in our
operations by 2040.
private label
products
with sustainable
attributes,
accounting for
$343m in sales
of operational waste
from landfill
72.9%
We have
diverted
SUSTAINABILITY
Light passenger fleet
total reduction of 21.9tCO
2
e
compared to FY22 (Scope 1)
100% EV
Raised
for NZ
charities and
communities in FY23,
including $1m from
MarketClub
MarketClub members can
nominate a charitable
cause to which

The Warehouse donates
on their behalf
$
4.1m
1.3
m
We’ve been helping
Kiwi families and
communities thrive
since our doors
opened in 1982.
COMMUNITY
The Warehouse Group Integrated Annual Report 202345At A Glance

In December 2022, the New Zealand
External Reporting Board (XRB) released
the Aotearoa New Zealand Climate
Standards (NZCS). New Zealand is leading
the way on mandatory climate reporting,
and we are pleased to be one of the driving
participants in developing the New Zealand
retail sector scenarios for this framework.
These scenarios will be used to identify
climate-related risks and opportunities and
develop our transition plan to a 1.5-degree
world. The New Zealand retail sector
scenario public report was released on
19 September 2023 and can be found here.
Looking after our people
and customers
We are deeply concerned by the continuing
increase in retail crime. The safety of our
store team members and customers is
our absolute priority. We have continued
to invest in safety measures and support
services for our team members – such as
training our store team members in incident
management and investing $1.8 million to
strengthen store security across all our
brands and particularly in our Noel Leeming
stores.
Supporting our
communities
Our teams have continued to step up
when it matters most. Earlier this year,
the devastation of floods and Cyclone
Gabrielle shook our country. I want to make
a special mention of our Napier, Hastings,
Tairāwhiti Gisborne, Northland, Auckland
and Coromandel teams, whose resilience
and teamwork have been incredible in very
difficult circumstances.
Thank you to our customers who donated
over $250,000 through our "Add $1"
campaign to raise money for affected
families. Combined with The Warehouse
Group's contribution of $200,000 (cash
and product) we donated over $450,000 to
local community groups supporting families
with relief.
FY23 has been a tough
year for The Warehouse
Group. A challenging trading
environment with Kiwi families
experiencing rising inflation,
increased cost of living and
rising interest rates has
intersected with the Group
being mid-way through a
transformation programme
and peak year of spending
on information systems
and digital infrastructure.

As a result, we have had
to make difficult decisions
to reprioritise some of our
strategic initiatives as we
navigate these challenges
.
Despite the ongoing macroeconomic
environment, we have seen pleasing sales
growth for the Group, achieving $3.4
billion in total Group sales, up 3.2% on the
prior year. We saw a particularly strong
sales result in The Warehouse of $1.9 billion
– the brand’s highest sales year on record
and up 9.6% on FY22. Refer to our CEO
Report for more commentary on brand
performance.
Customers have responded to the
economic climate by reducing their
spending on higher discretionary items,
impacting our other brands' sales.
The Group finished the year with a
disappointing adjusted net profit after
tax of $37.5 million for FY23, compared
to $85.5 million in FY22, with reported
net profit after tax of $29.8 million, after
unusual items of $13.9 million, compared
to $89.3 million in FY22. This year there are
number of unusual items reflecting actions
taken around our investment in Zoom
Health, restructure and redundancy costs,
and the closure of the 1-day business.
As the Group has traded through
this environment, it has managed to
Joan Withers – Chair
The Warehouse Group has a strong history
of giving back to its communities, having
raised $83.4 million since 1982. This year we
announced our new Here for Good Leave.
This gives our team members eight hours of
paid leave each financial year to volunteer
in a meaningful way for them, recognising
the close connection we have in the
communities within which we operate.
Governance
I want to acknowledge and thank the
Board for their contribution throughout the
last year. Their leadership and contribution
have been superb as we help guide The
Warehouse Group through a challenging
period.
I am proud that we’ve continued to attract
the highest quality Directors to work with
The Warehouse Group Board. This year
we welcomed Jeremy O'Brien as a Future
Director, replacing Caroline Rainsford
who joined the Board as a Director in
August 2022. Both appointments reflect
the success of the Future Directors
programme, co-founded by Sir Stephen
Tindall, as it works to develop the next
generation of Directors. We have gained
great benefit from this excellent scheme.
In October 2022, we entered a four-year
retention arrangement with Group
Chief Executive Officer Nick Grayston.
Since joining The Warehouse Group in
2016, Nick's strategic leadership has
steered us through a significant period of
transformation. He will play a critical role in
implementing
The Warehouse Group's long-term strategy
and we want to ensure his leadership
throughout this time.
At the Annual Shareholders Meeting
(ASM) in November 2022, I announced my
intention to conclude my tenure as Chair
of The Warehouse Group at the FY25 ASM
and I look forward to continuing to work
with Nick through the intervening period.
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.
In accordance with this policy, due to
the trading performance, net debt, and
liquidity levels at the half year, the Board
made the difficult decision in March not to
pay an interim dividend. Given the return
of net debt to levels that meet our target
liquidity range of $350 - $450 million, and
in accordance with our dividend policy, the
Board is pleased to declare a final dividend
of 8.0 cents per share. The record date for
the dividend will be 16 November 2023 and
will be paid on 1 December 2023.
The year ahead
Looking ahead, we are confident our
customers will continue to find the best
value options across our brands, and we will
remain top of mind for Kiwi families as they
make tough choices about how to spend
their income. We are conscious we need to
do better and are confident we have put
remedial actions in place to improve our
Group performance.
On behalf of the Board, I’d like to extend
heartfelt gratitude to all our valued
customers across all our brands. Thank you
for choosing us. I also want to recognise
our Group Chief Executive Nick Grayston,
our outstanding Leadership Squad, and our
11,000 team members. Being part of a team
that comes together around a challenge
and takes fast action is a privilege.
As always, to our shareholders, the
Board and I value your support and look
forward to meeting with you at our Annual
Shareholders' Meeting in November.
strengthen its balance sheet from the
half year, providing available liquidity of
$421.9 million at year end. This is within
our target liquidity range of $350 million
to $450 million.
Making a difference in
sustainability
Our commitment to make sustainable
living easy and affordable for everyone
starts with the products we sell. I am
immensely proud of our sourcing teams
who work with our local and international
suppliers to ensure our product and
packaging are more sustainable.
We have increased our efforts this year,
and now 33% of our private label sales
in The Warehouse and Warehouse
Stationery are products with one or more
sustainable features, up from 22% in FY22.
This represents 46,637 product lines and
$343 million in sales. In addition, 43%
of our private label sales were derived
from products with packaging that is
compostable or which can be recycled
via New Zealand's kerbside recycling
infrastructure or instore, up from 22% in
FY22.
Internally, our passenger fleet now
comprises 100% electric vehicles (EVs),
our sea freight and international airfreight
emissions reduced by 11.6% and 62.5%
respectively, and we diverted 72.9% of our
operational waste to recycling.
We helped our customers recycle 198.9
tonnes of post-consumer waste through
our soft plastics, e-waste, and ink and
toner recycling programmes.
In September 2023, we completed
negotiations with Lodestone Energy,
a new developer and operator of solar
electricity farms. This will result in over
260 The Warehouse Group sites being
supplied by solar electricity as early as
2026 – significantly reducing our Scope 2
emissions.
"We are
confident our
customers will
continue to find
the best value
options across
our brands and
we will remain
top of mind for
Kiwi families."
Group sales
up 3.2%
on prior year
$
3.4b
CHAIR'S REPORT
JOAN WITHERS
Light passenger fleet
Total reduction of 21.9tCO
2
e
compared to FY22 (Scope 1)
100% EV
Raised
for NZ
charities and
communities
since 1982
$
83.4m
The Warehouse Group Integrated Annual Report 202367Chair's Report

Nick Grayston – CEO
Our strategic reprioritisation is focused
on improving operational performance by
minimising cost to serve, managing gross
profit margin, and reducing working capital
and CODB, as well as rebalancing capital
expenditure across the Group.
In January 2023 we made the difficult
decision to reduce labour costs in our
Store Support Office. This is always a very
challenging time for all those affected and,
while this unfortunately resulted in reducing
340 roles, this has set the Group up for
increased efficiency, greater productivity,
and a laser focus on operational and
financial priorities, while reducing CODB.
Value for Kiwis
Rising food prices has been a harsh reality
for New Zealanders in the past year, and
there's a clear need for access to the
essentials at reliable and affordable prices.
We have taken significant steps forward
in our grocery offering at The Warehouse
during this time, expanding our range
and launching butter, coffee, pasta and
sauces under our Market Kitchen brand,
and trialling fresh fruit and vegetables at
affordable prices in 12 of our stores.
Customers have embraced our offering,
with grocery sales growing 26.1% in FY23,
contributing to 18.7% of The Warehouse
sales. Our challenge is to carry on fighting
for access to wholesale supply at equitable
cost prices to continue to achieve savings
for our customers.
Our loyalty programme, MarketClub, now
has over 1.3 million members, who represent
our most engaged customers. Through
MarketClub, we have been able to help
customers save on essentials like nappies,
butter and hygiene products in FY23.
This year The Warehouse secured a
new value range of Samsung and Dyson
products, allowing us to offer quality brands
at affordable prices, with a more extensive
and specialised range supported at Noel
Leeming. This year Noel Leeming was proud
to be one of the first retailers in the world
to stock Starlink, connecting thousands
of customers to high-quality internet
throughout New Zealand since launch.
Expanding efficiency and
revenue
Our transformation and agile model have
allowed us to expand into new revenue
sources and secure cost efficiencies. We
have recently integrated Torpedo7 into
our agile structure and ways of working to
unlock Group-wide efficiencies.
Our Group Marketplace initiative was
launched in October 2022, integrating some
of the TheMarket.com products onto The
Warehouse website and app. This extended
our range online, adding over 103,000
I am pleased to report the
second-highest Group sales
in our history and our highest
sales for The Warehouse in a
challenging economic year for
both us and our customers.
While sales were strong, FY23 was
disappointing as our margin and profitability
were compromised with increased costs,
supply chain disruptions in the first half,
and increased promotional and discounting
activity to drive sales. Torpedo7 was a
particular challenge during the year as sales
were impacted by decreased consumer
demand and profitability was significantly
affected.
Adjusted net profit after tax was $37.5
million in FY23, down 56.2% on a very strong
FY22 result of $85.5 million.
As we continue to invest in the
transformation of the Group and our
infrastructure in particular, this period
of peak spending has coincided with
a collapse in consumer confidence
exacerbated by a change in accounting
procedures, reducing capitalisation. We
remain committed to our strategy, but the
alignment of these actions has put pressure
on our business and has impacted our
performance in FY23.
We have taken extensive action on our
strategic reprioritisation initiatives to
improve performance, and I am encouraged
that we are better positioned to weather the
economic headwinds that we expect will
continue in FY24.
Financial performance
We are pleased to have achieved a Group
sales result of $3.4 billion in FY23, growing
3.2% on FY22, with The Warehouse brand
achieving $1.9 billion in sales. This is the
highest result on record, and increased 9.6%
on last year.
Even with our strong sales growth, we
have witnessed fundamental shifts in
products from 71 merchants to our existing
online customer base.
MarketMedia, our retail media network,
is scaling quickly, achieving several
successful campaigns with suppliers in
FY23 and growing revenue year on year.
Improvements in supply have also enabled
us to double our margin on retail media
revenues compared to last year. Looking
ahead, we are taking a significant step
forward and launching physical retail
media screens across The Warehouse and
Noel Leeming store network to deliver a
new marketing and media channel for our
brands and suppliers to reach and convert
customers shopping in our stores.
FY23 continued to see us invest in our
infrastructure capability, completing
existing major programmes of work to
return operational efficiencies. The new
Enterprise Resource Planning Finance
Inventory (ERPFI) system is progressing
well. This will provide more timely reporting,
project accounting, real-time inventory
management and enable improved
stock availability. Continued purposeful
investment in infrastructure that will reduce
our cost to serve long term and enhance
our customer experience remains a priority
for the Group.
Sustainability
This year, I am very proud of the progress
we continue to make on making sustainable
living easy and affordable for everyone. As
a team, we have challenged ourselves by
asking, "Does it pass the Tomorrow Test?"
in everything we do. While it’s a simple
sentence, it’s a big question and we won’t
have the perfect answer every time. But
every time we ask the question and make
more headway in the right direction, we
make a difference.
The Tomorrow Test has sparked incredible
momentum in our team members' actions
every day and is showing up in our
stores from an increase in products with
sustainable attributes to our expanding
circularity programmes like e-waste and
soft-plastic recycling. It’s also encouraged
us to innovate and look for new solutions
like our new energy partnership to power
over 260 Group sites with solar energy and
the My Recycle Hub pilot, both of which we
share more about in the Our Environment
section of this report.
Outlook
While FY23 has been a challenging year,
our initiatives to improve operational
performance and reduce our CODB have
strengthened our position. I am optimistic
we will maintain this momentum into FY24,
and our focus on improving financial
performance will continue.
Looking ahead, we anticipate that FY24
will be challenging for our customers as
they face into an unpredictable economic
outlook, and we know we have an important
part to play in offering Kiwis great value on
the things they need most.
I thank our Chair, Joan Withers, and our
Board for their unwavering support and
dedication to the organisation. I also want
to acknowledge and thank our Group
CFO, Jonathan Oram, who departs The
Warehouse Group in October, for his
exceptional leadership over the past five
years. Jonathan played a key role in our
retail transformation journey and our flip to
agile, performed a critical role in helping us
manage through the COVID-19 pandemic,
and helped the Group deliver record
financial results in FY21. We wish him all the
best in his new role.
In addition, I wish to thank our 11,000 strong
team who continue to show up for their
local communities. We stand together by
our purpose of helping Kiwis live better
every day, while providing sustainable long-
term returns for our shareholders.
discretionary spending while managing
the impact of inflation on our costs during
a year of planned investment in critical
infrastructure.
In the current challenging macroeconomic
environment, New Zealanders have limited
their spending on high-ticket items like
appliances, televisions and bikes and
have had to focus on the essentials over
our peak period. We are proud to have
provided real value for our customers at
The Warehouse, keeping essential items
affordable, and have seen this reflected
in increased sales this year. However, the
shift in consumer spending follows global
trends and has challenged Noel Leeming
and Torpedo7's performance, along with
the added pressure of poor weather in the
critical summer period, reducing interest in
outdoor items.
We have had significant challenges with
Torpedo7, resulting in an operating loss
for the year of $22.2 million. As at FY23 we
have provided for an inventory impairment
of $4.6 million against Torpedo7 to manage
excess and aged stock. We have a recovery
plan in place for the business and this will
be a major focus in FY24.
TheMarket.com loss was stemmed in the
second half - improving from a $16 million
loss in the first half to a loss of $6 million in
the second half.
We've continued to deliver the best value
for our customers across all our brands
despite the cost of goods increasing
materially, including shipping costs and
MarketClub promotions, which impacted
our margins. In the first half of the year,
especially, we did not pass on all of the
increased cost of product and cost of
doing business (CODB), in particular wage
pressures, to our customers. We have since
taken action and implemented initiatives to
recover some of these cost pressures and
margin decline experienced in the first half
and are pleased to see some improvement
in the second half.
The Warehouse brand sales
the highest result on record,
growing 9.6% on last year and
demonstrating New Zealand’s
need for value
$
$
1.9b
CEO’S REPORT
NICK GRAYSTON
"We have
taken action
to improve
operational
performance
and reduce our
Cost of Doing
Business."
MARKETCLUB MEMBERS
an increase of 122% on FY22
1.3m
>
Grocery sales
+26.1%
in FY23, contributing to 18.7%
of The Warehouse sales
The Warehouse Group Integrated Annual Report 202389CEO's Report

OUR PURPOSE, VISION, VALUES,
AND CUSTOMER EXPERIENCES
ARE ALIGNED
OUR PURPOSE
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
Range & Value
Helping customers
to find what they’re
looking for, at prices
that are great,
every time
Availability & Fulfilment
Helping customers
to enjoy fast, easy
and reliable ways
to get what they need
Sustainable & Affordable
Helping customers
to have access
to affordable
solutions that help
them live sustainably
Loyalty & Payments
Helping customers
to feel recognised
and rewarded
Customer Service
Helping customers
to get easy and
high-quality
customer service
every time
1
2
3
4
5
OUR STRATEGIC
CUSTOMER
EXPERIENCES
The Warehouse Group Integrated Annual Report 20231011Our Purpose, Vision & Values

Our ecosystem has strong foundations comprising
our iconic brands, an established store footprint, and
market-leading digital assets. Our assets position us
to expand our offering further and invest in capability
to enable us to serve our customers better and grow.
Our loyalty membership programme, MarketClub, is
at the heart of our ecosystem, offering special deals
and additional value. There are now over 1.3 million
New Zealanders actively using MarketClub across
TheMarket.com and The Warehouse.
We are committed to nurturing our members,
purposefully investing in our MarketClub programme
and expanding it across our Group. As the
programme grows with more capabilities added, we
can offer our customers a more personalised and
valuable shopping experience, through the increased
insights we gain through first-party data.
We are improving fulfilment capability and lowering
OUR
ECOSYSTEM
our cost to serve as part of driving increased
profitability on online, and our transformation work
is delivering improvements across our stores, supply
chain and online platforms.
Our retail media network, MarketMedia, is generating
new and larger marketing and revenue opportunities.
MarketMedia is launching in-store digital screen
advertising across The Warehouse and Noel
Leeming stores, giving our brands and suppliers
the opportunity to reach customers while they are
actively shopping.
Our ecosystem is grounded in our purpose: to help
Kiwis live better every day, and we believe we can make
a genuine impact on our customers' lives through
innovation.
Our aim is to deliver a modern, integrated
retail experience powered by a customer-
centric ecosystem that makes shopping
with The Warehouse Group easy and hassle
free, all while providing more value for
our customers.

MEMBERSHIP
Unlocking value and
increasing customer
insights through

first-party data
SHOPPING
We’re focused on making
our shopping experiences
easy and seamless –

in store and online

FULFILMENT
We get our goods
and services to
our customers,
when and where
they want

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

SERVICES
Our services help
customers and
businesses in their
daily lives
PAYMENTS
With more ways to
make their budgets
work for them
HEALTH
We’re exploring
convenient and
affordable access to
health and wellness
solutions for Kiwis
DATAPEOPLEPLATFORMS
OUR CUSTOMER

ENTERTAINMENT
Potentially extending
our membership
into entertainment
services and offerings
The Warehouse Group Integrated Annual Report 20231213Our Ecosystem

11
6
3
5
MATAMATA
MORRINSVILLE
TE RAPA
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
KAITĀIA
KAIKOHE
DARGAVILLE
WAIPAPA
KERIKERI
WHANGĀREI
WHAKATĀNE
WARKWORTH
GISBORNE
TAUPŌ
HASTINGS
MASTERTON
DANNEVIRKE
UPPER HUTT
INVERCARGILL
GORE
BALCLUTHA
TIMARU
QUEENSTOWN
WĀNAKA
REMARKABLES
NAPIER
HAWERA
PALMERSTON NORTH
WHANGANUI
FEILDING
NELSON
RICHMOND
GREYMOUTH
MOTUEKA
WHITIANGA
THAMES
MORRINSVILLE
CHRISTCHURCH
17
WELLINGTON
21
AUCKLAND
68
HAMILTON
HILLCREST
THE BASE
11
MAP KEY
The Warehouse Store
Warehouse Stationery Store
SWAS Store
Torpedo7 Store
Noel Leeming Store
OUR
STORES
APPS
TheMarket.com
Noel Leeming
The Warehouse
ONLINE STORES
Torpedo7
Warehouse Stationery
Noel Leeming
The Warehouse
PHYSICAL STORES
88
66
67
25
246 STORES
The Warehouse Stores
Warehouse Stationery Stores
including 40 SWAS (store within a store)
Noel Leeming Stores
Torpedo7 Stores
TheMarket.com
The Warehouse Group Integrated Annual Report 20231415

As New Zealand's largest
general merchandise retailer
where everyone gets a bargain,
The Warehouse has been Here
for Good for communities for
over 40 years.
While Kiwis navigate the high cost of living,
The Warehouse continues to focus on
giving our customers great value through
our MarketClub loyalty programme and by
offering a wide range of quality products at
affordable prices.
This year, The Warehouse has achieved our
highest sales in history of $1.9 billion, with foot
traffic up 17.6% in FY23 compared to the prior
year. A key highlight is our increased range,
including introducing a selection of Samsung
and Dyson products, giving our customers
more quality brands at value price points.
Our Group Marketplace initiative, launched
in October 2022, offers our customers more
choice. Group Marketplace is an integration
between The Warehouse and TheMarket.com
that enables an extended range of products
on The Warehouse online. Over 71 third-party
merchants and over 103,000 Marketplace
products are now available on our website as
we test our way into this integration.
FY23 saw our grocery range go from strength
WHERE EVERYONE
GETS A BARGAIN
to strength as we demonstrated commitment
to offering our customers much-needed
value on essential items.
We launched our private label Market Kitchen
500g salted butter, and Market Kitchen
coffee beans, plunger, instant coffee and
coffee pods. This Market Kitchen range now
includes 64 products, helping give Kiwis more
affordable essentials and pantry staples.
This year, we also launched our fresh fruit
and vegetable trial in 12 stores – Waipapa,
Whangārei, Westgate, Manukau, Te Rapa,
Fraser Cove, Lyall Bay, Eastgate, Timaru,
Riccarton, Dunedin South and Invercargill. We
are proud to be working with local suppliers
where practical to stock our shelves with
seasonal produce, and we are encouraged by
the positive response from customers so far.
Overall, grocery sales grew 26.1% in FY23,
making up 18.7% of total The Warehouse
sales. Within this category, we experienced
91.8% growth in pantry and chilled, 26.6%
growth in household cleaning items, and
23.8% growth in pet care.
We're committed to making it easier for
our customers to make affordable and
sustainable choices, and we continue
to make packaging improvements to a
number of our products, including removing
unnecessary plastic packaging as much
as possible. We are finding new and
innovative ways to make our products more
sustainable; for example, using materials like
recycled polyester and EcoVero
TM
viscose
in our winter 2023 activewear range, which
have a lower environmental impact.
We continue to grow our circularity solutions
for customers in store. The soft-plastics
recycling programme expanded to 44 stores,
and in the last year, 88.1 tonnes of soft plastics
have been collected and recycled. This is
the equivalent of approximately 14.7 million
pieces of plastic, based on the average
weight of one piece of soft plastic being 6.3
grams.
In November 2022, The Warehouse
celebrated 40 years of giving Kiwis great
value on what they want and need. For
40 years, being Here for Good for the
communities we serve has been part of
The Warehouse's founding DNA. During
our most recent community campaign, The
Warehouse partnered with the Kindness
Collective during our July Mega Toy Sale
to donate $55,000 worth of new toys and
$50,000 of vouchers to purchase new toys
for deserving kids across New Zealand.
Our customers got behind this campaign,
adding $1 at checkout and raising $77,900 to
help the Kindness Collective provide kindies,
kōhanga and whānau services with toys,
arts, crafts and books.
OUR
BRANDS
OUR
BRANDS
up 1.7% on FY22 and gross
profit margin 37.4% for FY23
88
Gross profit
Stores
Sales
up 9.6% on FY22
$
1.9b
$
708.5m
Operating profit
down 5.5% on FY22
$71.6
m
17The Warehouse Group Integrated Annual Report 202316Our Brands | The Warehouse

In July 2023, we launched a new brand
campaign centred around how Warehouse
Stationery helps customers 'Get the Small
Stuff Right', reminding New Zealanders
that we are here to help them succeed
in business, creativity or education. This
year, we launched our Get New Zealand
Creating initiative, engaging customers in
store and online over the school holidays
with exciting deals and activities across
arts and crafts. Over the year, we have
seen a 4.3% increase in arts and crafts
category sales.
In FY23, Warehouse Stationery renewed
its focus as a pivotal partner for New
Zealand businesses. We deliver great value
to support their growth and increased
our product and service offerings to
government agencies. Internally, we have
established a new customer mission tribe,
Business Solutions, aiming to simplify
service, enhance rewards, and offer
ongoing promotions to our customers.
As a result of sustained efforts by our
teams and our commitment to driving
sustainability, our potential to expand and
support more business and government
customers is significant. It will be a key
focus for Warehouse Stationery in FY24.
Warehouse Stationery is New
Zealand's go-to destination for
all things stationery, offering
everything from essential
supplies to office furniture,
technology, printing, and
arts and crafts. We are also a
leading supplier for businesses
across the country.
In FY23, our sales held up well, given
the strong sales over the last three
years during peak COVID-19 periods
as customers worked and learnt from
home. This year, our Print and Copy
Centres, which include personalisation
services, grew from strength to strength.
Sales increased 17.8%, and we printed
24.0 million pages on 100gsm paper,
1.4 billion mm of 6" photo paper, bound
250,000 booklets, and produced 43,000
personalised mugs.
Our store-within-a-store (SWAS)
integration strategy continues to expand
nationally, with 40 Warehouse Stationery
stores now located within The Warehouse
store network. This year, we integrated five
new SWAS stores, allowing customers to
access both brands and a wider product
range in one place. Our Warkworth SWAS
opening allowed us to trial a stand-alone
service centre next to checkouts, offering
print, copy and other services within
The Warehouse. We relocated our
Warehouse Stationery Manukau store
to a more convenient location for our
customers next to our Noel Leeming store
in the Manukau Supa Centa.
Back to School continues to be a major
event for Warehouse Stationery, offering
everything families could need to kick-start
the school year. Notably, fashion stationery
sales rose by 49.1% in FY23, including new
offerings with sustainable features, like
our 'I was a bottle' range with stationery
made from recycled plastic bottles and
notebooks with paper made from stone, a
more environmentally-friendly option.
As part of our Back to School campaign,
we partnered with KidsCan to provide over
100,000 items to 73 lower-decile KidsCan
schools across New Zealand. By adding
$1 at checkout in Warehouse Stationery
and The Warehouse stores, our customers
generously contributed over $66,000,
topped up to $74,000 by The Warehouse
and Warehouse Stationery, to support
KidsCan and help children access the
essentials they need to have a successful
start to the school year.
DO YOUR BEST WORK
OUR
BRANDS
OUR
BRANDS
down 1.7% on FY22 and gross
profit margin 46.9% for FY23
66
Gross profit
Stores
Sales
down 0.4% on FY22
$
116.6m
$
248.6m
(40 SWAS)
Operating profit
down 0.2% on FY22
$23.0
m
The Warehouse Group Integrated Annual Report 20231819Our Brands | Warehouse Stationery

Noel Leeming is one of New
Zealand’s leading consumer
electronics retailers, helping
Kiwis enrich their lives
through technology. We pride
ourselves on offering Kiwis
global and home brands and
innovative world-class service.
Noel Leeming's sales were affected
by a year-on-year decline in category
spend on higher discretionary items
like televisions, driven by customers
responding to the increased cost of
living. The sales result was also impacted
by spend in previous years on working
and learning from home products during
COVID-19.
Noel Leeming has seen strong growth
in emerging categories like Gaming, up
50.8% from FY22, and Smart Home, up
40.7% from FY22. We have also seen
growth in the Communications category
through our expanded partnership with
2degrees to include pay monthly mobile
plans, as well as exclusive deals on mobile
phones and plans.
Our Noel Leeming service offering
has continued to grow, introducing
new partnerships to enhance our
customers’ technology experiences.
We launched Starlink as their first New
Zealand retail partner, offering Starlink
broadband with hardware in our stores.
Thanks to our committed team, we were
able to provide significant support to
communities heavily affected by Cyclone
Gabrielle with Starlink packages, where
critical infrastructure supply had been
interrupted.
Noel Leeming continues to achieve
high customer satisfaction ratings when
customers shop in store with us. Our Net
Promoter Score increased by 2.9 points
this year, taking our score to 75.1 for FY23.
With the removal of COVID-19 restrictions,
we’ve seen customers return to shopping
in store more frequently, with foot traffic
across Noel Leeming stores increasing by
13.1% in FY23. To support this, we continue
the regular review of our store network
to ensure we have the best availability
and footprint to support customer needs.
We welcomed a new concept store
in Warkworth this year, replacing the
smaller 11-year-old site. The new store
is four times larger than the original site
and features our full product range. In
addition, we’ve closed our Noel Leeming
George Street (Dunedin) store to support
consolidation and to provide improved
customer service from our larger-format
store in Dunedin.
Online sales have normalised to pre-
COVID-19 shopping patterns, making
up 11.1% of total sales compared to 16.3%
in FY22. Customers continue to choose
Click & Collect as a means of fulfilment
of their online purchases, with Click &
Collect orders making up 62.9% of all
online sales compared to 57.7% in FY22.
Noel Leeming’s one-hour Click & Collect
offering introduced in FY22 continues to
be popular.
In June, Noel Leeming celebrated its
50-year anniversary. Noel Leeming’s
customers enjoyed celebratory events
and special deals for the month to
commemorate the occasion. We launched
a fundraising campaign for Orange Sky
Aotearoa, which provides free laundry
services, warm showers, and genuine
connections for Kiwis experiencing
homelessness and hardship. With our
generous customers’ $1 donations at
Noel Leeming checkouts, we raised over
$20,000 for this charity.
Along with our commitment to the
community, we continue to drive forward
sustainability initiatives in Noel Leeming.
In partnership with TechCollect NZ, Noel
Leeming offers free e-waste collection
and recycling. In FY23, the programme
expanded its offering and is now
available across 28 (up from 16 in FY22)
stores nationwide.
OUR
BRANDS
OUR
BRANDS
THE AUTHORITY ON APPLIANCES,
TECHNOLOGY AND SERVICES
down 8.2% on FY22 and gross
profit margin 22.0% for FY23
67
Gross profit
Stores
Sales
down 3.3% on FY22
$
1,061m
$
233.1m
Operating profit
down 49.3% on FY22
$2 7. 3
m
The Warehouse Group Integrated Annual Report 20232021Our Brands | Noel Leeming

Torpedo7 is the ultimate store
for outdoor adventures in New
Zealand. From activewear
and hiking boots to all your
camping, bike and snow gear,
and the passionate know-how
of our team, Torpedo7 has
everything you need to get
outdoors.
It has been a very challenging year for
Torpedo7, with a global demand slowdown
for bikes after a spike during COVID-19
lockdowns. A wet summer and late ski
season impacted seasonal categories like
water sports, camping and snow gear.
Profitability was compromised with
decreased margin and increased cost of
doing business, resulting in an operating
loss for the year of $22.2 million. As at FY23
year end we have provided for an inventory
impairment of $4.6 million against Torpedo7
to manage excess and aged stock.
A recovery plan is in place for the business
and this will be a major focus in FY24.
Despite the challenges in bike and seasonal
impacts, Torpedo7 has seen pleasing
growth across other categories in FY23,
with 42.8% growth in footwear, 18.8% growth
in athletic leisure wear and 26.9% growth
in electronics. Our Torpedo7 private label
ranges continue to grow and now make up
more than 34.0% of total sales.
Customers continue to enjoy the knowledge
and advice from our outdoor expert team
members, with our customer Net Promoter
Score increasing by 3 points to 71 in FY23.
In August 2023, our Torpedo7 support
office, store leadership, logistics and
fulfilment teams joined the rest of the Group
in transitioning to agile ways of working,
integrating the business under existing
support structures and product purchasing
into a new Sports and Adventure customer
mission tribe.
The shift to agile will bring our Torpedo7
brand and teams closer to the Group to
unlock efficiencies, grow our profitability
and deliver a better customer experience.
We also began the process of migrating
Torpedo7 to our new Enterprise Resource
Planning (ERP) software system. The new
platform will replace and modernise our
legacy systems, streamline our business
operations and improve the experience for
our customers.
With Torpedo7's passion for the outdoors
and our local environment, we provide
support through our community
partnerships. This year, with the help of our
customers, we raised more than $77,000
for our community partners including
Hillary Outdoors Education Trust, to help
young people experience the outdoors
and build important life skills. In June, our
stores and customers also raised $8,288
for St John's Annual Appeal.
OUR
BRANDS
OUR
BRANDS
SEE YOU OUT THERE
FY22: Operating loss $2.2m
FY23: Gross profit margin 29.9%
25
Operating loss
Stores
Sales
down 5.4% on FY22
$
162.2m
$
22.2m
The Warehouse Group Integrated Annual Report 20232223Our Brands | Torpedo7

OUR
BRANDS
OUR
BRANDS
MarketClub is our free-
to-join membership
programme that gives
our customers exclusive
discounts and offers when
shopping with us. Every
time a customer uses
MarketClub, we donate a
portion of the proceeds to
a charitable cause on their
behalf.
In October 2021, we introduced
MarketClub into The Warehouse,
and this year we reached a major
milestone with over 1.3 million
customers using MarketClub. Our
Club members are our most engaged
customers, who enjoy exclusive deals
on the products they love.
Currently, members can use
MarketClub at The Warehouse
through The Warehouse app, our
online store, or by scanning the app at
our store checkouts. At TheMarket.com,
MarketClub members also get special
deals for free. In addition, we offer
MarketClub+, a subscription service
on TheMarket.com that provides free
shipping on millions of eligible items,
VIP access to exclusive offers, priority
customer service, and more.
In FY23, MarketClub members saved
nearly $18.0 million with member
discounts. The most popular deals were
our $4 and $5 Tararua 500g butter,
with over 220,000 customers scanning
MarketClub to access the offer.
Since launching the platform in
October 2021, we have raised over
$1.6 million for various causes in New
Zealand. Our charity partners include
Life Education Trust, Whānau Āwhina
Plunket, Variety – the Children's
Charity, Sustainable Coastlines, and
special campaigns
like Be the Joy, helping Kiwis in need
at Christmas.
YOU GET EXCLUSIVE
DISCOUNTS AND OFFERS
MARKETCLUB MEMBERS
an increase of 122% on FY22
1.3m
>
donated through
MarketClub in FY23
$
1m
MarketClub is a valuable addition
to our ecosystem, designed to
make shopping with us easy and
rewarding for our customers, and we
will continue to expand the platform
purposefully.
The Warehouse Group Integrated Annual Report 20232425Our Brands | MarketClub

With the help of our generous
customers, since 1982 The
Warehouse Group has raised
more than $83 million for
New Zealand charities and
communities to help Kiwi
families thrive.
Since we opened our doors in 1982, our
purpose has been clear: to help Kiwis
live better every day. We're proud of our
ongoing efforts to help our communities
in meaningful ways and be there for them
in moments that matter.
We focus on areas where we can truly
make a difference, like bringing joy to
families at Christmas, ensuring young
people have access to period products,
supplying essential school supplies to
help kids thrive in school, and providing
the essentials in an emergency.
This year, through the generosity of
our customers and the engagement of
our store team members, we raised $4.1
million for New Zealand charities and
community groups.
On a national level, we partner with some
fantastic charities, including Sustainable
Coastlines, Youthline, Women's Refuge,
Variety – the Children's Charity, The
Salvation Army, Whānau Āwhina Plunket,
The Period Place, Hillary Outdoors, and
Life Education Trust.
Our community highlights
Be the Joy
Together with our partners at Women's
Refuge and Variety – the Children's
Charity, we helped to bring joy to
thousands of Kiwi families by giving them
a gift to open on Christmas Day. With
the help of our customers purchasing
$5 Be the Joy gift tags in our stores, we
delivered over 17,500 gifts to children who
would otherwise go without.
The Warehouse stores became a drop-
off hub for customers to donate new,
unwrapped gifts for each store's local
Women's Refuge. Our Store Support Office
and North Island Distribution Centre teams
took part by collecting and donating gifts
to Auckland City Mission too.
Our customers could add a dollar in store
or at checkout online as well, and this
SUPPORTING OUR
COMMUNITIES
raised over $130,000 for Women's Refuge
and Variety – the Children's Charity.
Back to School
This year for our Back to School
campaign, The Warehouse and
Warehouse Stationery partnered with
KidsCan to donate over 100,000 essential
stationery items to 73 lower-decile
KidsCan schools across New Zealand,
including sun hats, pencil cases, pencils,
pens, notebooks, rubbers, rulers, glue
sticks and sun cream.
We also invited our customers to join us
by adding $1 at checkout in Warehouse
Stationery and The Warehouse stores.
Our customers donated over $66,000
to support KidsCan and help children
access the essentials they need to start
the school year successfully. With an
additional donation from MarketClub,
over $74,000 was donated to KidsCan
to help get food, raincoats, shoes and
essentials to kids who need them.
Cyclone Gabrielle support
To help Kiwi families affected by Cyclone
Gabrielle and North Island flooding, we
turned on our emergency fundraising for
customers to add $1 at our checkouts in
all The Warehouse Group stores.
During this time, our customers gave an
incredible $250,000. The Warehouse
Group donated $200,000 (cash and
product), resulting in over $450,000
going to a mix of community groups who
were on the ground helping families in the
affected regions, including the Hawke's
Bay Foundation, SuperGrans Tairāwhiti
Gisborne, The Northland Foundation,
ButtaBean Motivation, The Middlemore
Foundation, Te Hā Oranga, and The
Salvation Army foodbanks.
Our store teams in the affected regions
played an incredible role for their local
communities during this time, donating
essential products and opening the doors to
our stores to serve the community’s needs.
Mega Toy Donation
For our Mega Toy Sale, The Warehouse
joined up with the Kindness Collective
and donated $50,000 of vouchers
for toys for deserving kids across
New Zealand. Every The Warehouse
store team used the funds from their
data, design thinking, and interviewing
customers in our stores.
Gateway students
programme
We are proud to offer Year 12 and Year
13 school students work experience and
the opportunity to achieve unit standard
credits through the Gateway programme.
In partnership with ServiceIQ, this
programme provides students with
hands-on work experience in the retail
industry and a chance to make helpful,
professional contacts for when they leave
school.
Red Shirts in Schools in The Warehouse,
Blue Shirts in Schools in Warehouse
Stationery, Torpedo7 bike hub, and
Discovering Passionate Experts in
Noel Leeming reached 1,255 student
enrolments in FY23.
The programme has a 90% completion
rate across our 122 supporting stores,
and this year, 24 students have been
employed in roles on completion of the
programme.
Access to period products
We're continuing to make period products
accessible and affordable through our
range of $1 pads, with one in every 10 sold
donated to local organisations in need
through the support of our community
partner, The Period Place.
More than 86,400 period products have
been donated through this initiative this
year, bringing our total donations to date
to over 266,000 period products. We
also provide free period products for our
team members across our stores, support
offices, and distribution centres.
Reusable bags and
local giving
Every time a customer buys a $1 red
reusable bag from The Warehouse, a
portion of the proceeds remain with that
local store team to use to support the
communities they serve at a local level.
Our local stores also play a vital role in
giving back to their communities, and this
year, we raised $1.4 million through the
sale of our red reusable bags.
17,500
gifts provided by
Be the Joy campaign,
to Kiwi kids
to support local
communities through

the sale of our red
reusable bags
more than
reusable bag proceeds to get behind
this campaign to donate an additional
$55,000 of new toys to kindies, kōhanga
or whānau services in their local area.
Our customers got behind this campaign
as well, adding $1 at checkout and raising
$77,900 to help the Kindness Collective.
Noel Leeming
50th Birthday
As part of our 50th birthday celebrations,
Noel Leeming partnered with Orange Sky
Aotearoa, a charity that provides laundry
services, warm showers, and genuine
connections for Kiwis experiencing
homelessness and hardship. With our
generous customers' $1 donations at
Noel Leeming checkouts, we raised over
$20,000 for this organisation.
P-TECH Programme
In FY23, we continued our role as a key
partner in the Pathways in Technology
(IBM P-TECH) programme. P-TECH helps
get students job-ready by developing
their digital skills and is now in 28
countries globally.
As an industry partner, The Warehouse
Group 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.
This is our fourth year as a partner, and
seven interns joined The Warehouse
Group for a six-week internship. Over the
course of the programme, students were
introduced to gathering insights and
Raised
to community
groups affected
by Cyclone
Gabrielle
$
450k
$
1.4m
Sausage Sizzles
This year, our The Warehouse store teams
have given back to their local community
by firing up the barbecue and bringing
back the sausage sizzle.
For the opening weekend of our
Warkworth The Warehouse store, four
local community groups – Coastguard
Kawau, Heart of Springboard, Warkworth
Lions Club, Warkworth Scouts raised over
$4,000, which the store matched to a total
of $8,000 through sausage sizzles.
MarketClub donations
with every scan
Every time a MarketClub member
scans at The Warehouse we donate a
portion of the proceeds to a charitable
cause of their choice. Since launching
the platform in October 2021, we have
raised over $1.6 million to various causes
in New Zealand. Our charity partners
include Life Education, Whānau Āwhina
Plunket, Variety – the Children's Charity,
Sustainable Coastlines, and special
campaigns like Be the Joy, helping Kiwis
in need at Christmas.
can nominate a
charitable cause to which
The Warehouse donates
on their behalf
>
>
1.3m
over
MarketClub members
The Warehouse Group Integrated Annual Report 20232627Community

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. These are demonstrated through the
six capitals shown below and detailed in this
report.
This is The Warehouse Group’s fifth Integrated Report
and aims to:
• Provide quality information to all stakeholders;
• Promote a holistic, cohesive and efficient
approach to corporate reporting;
• Enhance accountability and stewardship for the
application and use of inputs in the business to
deliver retail value; 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. This attempts to explain
how the macro and internal inputs into the business
(Capitals) are used through our strategy and
business activities to deliver performance outcomes
in FY23.
Refer to the following pages for further details on
each of these capitals.
This is the third year we have also reported under the
Global Reporting Initiatives (GRI) framework. Refer
to pages 60 and 61 of this Annual Report for further
information on the GRI reporting framework and

The Warehouse Group’s material topics, and
pages 110-113 for 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.
SOURCING PRODUCT
SUPPORTING NEW ZEALAND
COMMUNITIES
INTEGRATED RETAIL
SALES ENVIRONMENT
BRINGING PRODUCT
TO MARKET
UNDERSTANDING
OUR MARKET
MEMBERSHIP
INPUTSOUTPUTS
HUMAN CAPITAL
FINANCIAL CAPITAL
INTELLECT UAL CAPITAL
MANUFACTURED CAPITAL
OUR NETWORKS
SOCIAL AND

RELATIONSHIP

CAPITAL
OUR
RELATIONSHIPS
OUR
PEOPLE
NATURAL

CAPITAL
OUR
ENVIRONMENT
OUR
CUSTOMERS
• 246 stores including 40 SWAS
• 26 The Warehouse stores with grocery offering
including 12 with fresh fruit and veges
• 72 The Warehouse stores with Garden Centres
• 14.2% increased foot traffic with in-store sales
up 9.7%
• Raised $4.1m for New Zealand charities and
communities, $83.4m since 1982
• Conducted 266 Labour and Environmental
third party onsite audits
• 90% achievement on all environmental factors
• Started engaging with our suppliers on
GHG emissions management as part of our
programme to reduce (Scope 3) emissions
• Operating cashflow $214.2m (FY22: $105.4m)
• Capital expenditure $113.2m (FY22: $107.5m)
• Final dividend 8.0 cps
• $145m Sustainability Linked Loans
• Liquidity of $421.9m
• Group Store NPS up 2.6pts to 76.3
• SKU reduction of 4.8% for The Warehouse and 13.6%
for Warehouse Stationery
• Online sales 10.9% of total sales
• Click & Collect sales 51.8% of online sales from
omnichannel brands
• The Warehouse 10.6% of core retail market share
• Women in 50.0% of senior leadership roles
• 101% gender pay equity
• Established 26-week full pay Parental Leave P{olicy
• Critical events: 8 in FY23 (FY22: 52)
• TRIFR: 32.8 per million hours worked (FY22: 24.7)
• Lost-Time Injuries reduced by 10.9%
• 33% of private label sales from products with
sustainable attributes (FY22: 22%)
• 43% of our private label sales were derived from
products with packaging that is compostable or which
can be recycled via New Zealand's kerbside recycling
infrastructure or instore (FY22: 22%)
• 7,657 tCO
2
e of Scope 1 and 2 emissions (down 43.3%)
• 100% of the Group’s passenger fleet is full EV
• Diverted 72.9% of operational waste from landfills
• Diverted 198.9 tonnes of post-consumer waste from landfill
We strive to build
world-class customer
experiences and an
ecosystem enabled by
our portfolio of brands,
our supply chain
network and enterprise
systems.
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.
We want to build strong
relationships with our
communities and our
stakeholders to deliver
sustainable value and
positive change.
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.
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.
INTEGRATED
REPORT
RETAIL VALUE
CREATION PROCESS
FINANCIAL
CAPITAL
$
The Warehouse Group Integrated Annual Report 20232829Integrated Report

Risk management
The Group's risk management framework has
been designed to identify, assess, control and
monitor its key risks. The identification and
ongoing management of these key risks assists
the business in achieving its objectives and
goals.
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. Responsibility
for operational risk management sits with our
Leadership Squad but also considers the agile
operating model which allows our teams to react
quickly to change. This mixed model provides
flexibility, 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 provides
challenges for the Group to effectively compete.
This increased velocity poses new challenges

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
their 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 key risks with its senior Leadership Squad 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:
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 operating model. As
part of this agile operating model, our team's
focus is 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.
In an agile operating model, the Group applies
an iterative risk management approach which
is managed through quarterly business reviews,
sprints, stand-ups and regular reviews. In this
way risk management responses are broken up
into smaller and more manageable components
while also encouraging collaboration across
stakeholders, project team members and
sponsors.
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 of our Integrated
Reporting is different from financial materiality
in the financial statements. It is driven by the
risk appetite settings, and the specific outcomes
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 third year we have reported under
the Global Reporting Initiatives (GRI) framework
and material topics. In 2023 we performed a
high-level internal review of the material topics
previously identified with a focus on the actual
and potential, positive and negative impacts
these topics have on our environment, the
economy and our people. Refer to pages 60 and
61 for our GRI Report and the material topics
under our GRI reporting framework.
RISK &
MATERIALITY
Mōrea me te Tūponotanga
The Warehouse Group Integrated Annual Report 20233031Risk & Materiality

different products. In addition, 12 The
Warehouse stores now provide a fresh
grocery offering to our customers. This
is going very well, with all products
(except bananas) sourced locally,
supplying in-season fresh fruit and
vegetables.
Our customers are also loving our
Garden Centres in 72 of our 88 The
Warehouse stores. This year, we have
installed new garden equipment in
these stores, enabling a better growing
environment, better racking and easier
customer access areas.
Customers continue to prefer our
self-service checkouts, which have
been deployed into over half of all The
Warehouse stores. These checkouts
have become an increasing helpful
customer experience in our stores,
especially in The Warehouse stores
with a grocery offering.
We continue to optimise our
Warehouse Stationery store-within-a-
store (SWAS) integration programme
with a further five Warehouse
Stationery SWAS stores opening
during the year including Lower Hutt,
Palmerston North, Timaru, Warkworth
and Hillcrest Hamilton.
We are excited about the upcoming
new store openings in Wānaka in
October 2023, including new The
Warehouse, Warehouse Stationery
SWAS and Noel Leeming stores in this
growing region of New Zealand.
We also announced the closure of The
Warehouse and Warehouse Stationery
in Belfast, Christchurch and Noel
Leeming Northlink in September
2023. We have temporarily closed
The Warehouse Tory Street store in
Wellington following an electrical fire,
and are reviewing the location of this
Wellington store.
Decisions like these are never made
lightly and we take into consideration
a number of factors such as population
growth, foot traffic and proximity to our
nearby stores. This is part of our regular
store optimisation review to ensure we
have our people and stores in the right
place, and in the case of Belfast, we
have seen more customers choosing
Our purpose to help Kiwis
live better every day is
enabled by developing
a world-class customer
experience through:
1. Our portfolio of brands, both online
and instore;
2. A reliable and sustainable
distribution and supply chain; and
3. Our enterprise systems, processes
and data.
Our portfolio of brands –
online and in store
We are proud of our portfolio of brands
which provide a variety of products
to serve our customers, wants and
needs through our ecosystem of
online, mobile app, in store and service
offerings.
Our diversified brand portfolio delivers
a range of products – from homeware,
toys, grocery and apparel; stationery,
office and study equipment; outdoor
gear and sportswear; and a full
electronic and appliance product and
service offering to kit out every area of
our customers’ homes at a strong value
price point.
Customers have the choice to shop
at their own convenience, through
our 246 stores, 3 mobile apps, and
5 online sites – all supported by our
membership programmes which enable
us to build stronger relationships
with our customers and extend their
engagement across the Group.
Store development
Our store strategy is all about ensuring
we have the right stores, with the right
footprint, in the right place for our
customers. We undertake a great deal
of research, including population and
demographic shifts, when looking at
new store locations, and we review
store performance on an ongoing
basis. During FY23, The Warehouse,
Warehouse Stationery and Noel
Leeming have seen some consolidation
of store locations as we optimise our
store network.
In particular, in May 2023, we closed
The Warehouse Snells Beach, the
Warehouse Stationery and Noel
Leeming Warkworth stores and
opened an exciting new retail centre in
Warkworth including The Warehouse,
Warehouse Stationery (SWAS) and a
new Noel Leeming store.
In addition to the Warkworth retail
centre opening, during the year we
closed The Warehouse South City,
Warehouse Stationery Auckland
CBD and Warehouse Stationery
Johnsonville. We opened a new
Torpedo7 store in Botany, moved the
Torpedo7 Christchurch store to a larger
site, and closed the smaller of our two
Noel Leeming stores in Dunedin.
In FY23, 26 The Warehouse stores
received a new grocery customer
experience roll-out with benefits
including greater grocery, pantry
and chilled food offerings. We
have expanded our private label
Market Kitchen range to include 64
up by 5 in FY23
STORESSWAS STORESFOOT TRAFFIC
OUR
NETWORKS
Ngā Kōtuitanga
2464014.2%
to shop in our larger nearby locations,
including our new stores in Papanui.
Store team and customer
safety
Our team members and customers
safety is of utmost priority for The
Warehouse Group. As retail crime
continues to challenge our business
and our team, we work closely with
New Zealand Police to mitigate every
possible occurrence in our stores. As a
Group, we have implemented a number
of our own initiatives to keep our
people and customers safe. We have
installed fog cannons, glass guards,
strong-room door strengthening and
alarm integration in our Noel Leeming
stores, and alarm system upgrades in
110 stores across our network.
Customer shopping habits
in store and online
The year in review has seen a significant
shift as customer's shopping habits
return to normal after an unprecedented
surge in online shopping during the last
three years of COVID-19 disruption, and
customers took to shopping online to
access the goods they needed. In FY23,
customers moved back to shopping in
store with foot traffic up 14.2% and store
sales up 9.7%.
As our in-store sales increased, online
sales decreased compared to the prior
year, with online sales making up 10.9%
of total Group sales in FY23 compared
to 16.8% in FY22, but increasing
compared to pre-COVID-19 times, up
from 7.8% in FY19.
Customers continue to embrace
collecting their online orders in store
through our Click & Collect offering
– particularly at The Warehouse
and Noel Leeming stores. Total
Click & Collect sales accounted for
51.8% of omnichannel online sales
(FY22: 49.0%), including 47.8% of The
Warehouse online orders and 62.9%
of Noel Leeming online orders. This
year we updated our Click & Collect
pricing model in The Warehouse where
customers can use Click & Collect for
free when products are in stock at
their selected store, or with the option
of paying a small $3 fee to get any
product transferred to a store of their
choice.
This has been accepted across all our
store channels as we continue to offer
Warkworth
Building is constructed with smart technology and highly insulated roofing and walls with the intention to
reduce energy consumption.
The use of wooden framing means we have a lower carbon footprint in comparison with
conventional steel-framed buildings.
The building is powered by 252 solar panels on the roof, generating a reduction of 140kWh of electricity.
Our stormwater tank helps us collect and conserve rainwater, which is used in our Garden Centre's
irrigation system (this is also powered by the rainwater).
Later this year, six EV charging stations will go into the parking with more planned at a later date.
The Warehouse Warkworth is our 40th store location to offer soft-plastics recycling as part of
The Packaging Forum's Soft Plastic Recycling Scheme. Customers can drop off their used
ink and toner to the store to be recycled.
Noel Leeming Warkworth supports our e-waste programme, helping its customers to recycle
their e-waste.
Building the most energy-efficient
retail building in New Zealand
The Warehouse Group Integrated Annual Report 20233233Our Networks