The Warehouse Group FY24 Interim Results

Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 26 weeks to 28 January 2024
Previous Reporting Period 26 weeks to 29 January 2023
Currency New Zealand dollars
$1,632,746
$1,705,787
$31,847
$(23,659)
Interim Dividend
Record Date 08 April 2024
Dividend Payment Date 23 April 2024
Contact phone number
Contact email address
Date of release through MAP
Unaudited financial statements accompany this announcement.
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change
Revenue from continuing
operations
Net profit from
continuing operations
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Celia.Mearns@thewarehouse.co.nz
54.1 cents (28 January 2024) 60.7 cents (29 January 2023)
The investor presentation, media release and unaudited interim Financial
Statements which accompany this announcement, provide information and
commentary to explain the financial performance of the Group for the 26 week
period ended 28 January 2024.
down (4.9)%
down (5.9)%
Current period
down (236.3)%
Imputed amount per
Quoted Equity Security
Net tangible assets per
Quoted Equity Security
up 34.6 %
Total Revenue
Total net loss
Amount per Quoted Equity
Security
20 March 2023
$0.05000000
$0.01944444
Authority for this announcement
Name of person authorised to
make this announcement
Contact person for this
announcement
Celia Mearns (Acting Group Chief Financial Officer)
Celia Mearns (Acting Group Chief Financial Officer)
021 452 860
Prior comparable period

---

1


To: NZX Limited
Wednesday 20 March 2024

The Warehouse Group simplifies further to focus on core brands
• Total Group continuing sales
1
$1.633 billion in FY24 H1, down 4.9% compared to FY23 H1
o The Warehouse sales were $965.6 million, down 4.7%
o Warehouse Stationery sales were $117.9 million, down 5%
o Noel Leeming sales were $544.4 million, down 2.2%
• Gross Profit $559.7 million, down 0.4%
• Gross Profit Margin increased 160 basis points to 34.3%
• The Warehouse Gross Profit increased 1.6% to $374.3 million, with Gross Profit Margin up 250
basis points to 38.8%
• Continuing Adjusted Net Profit After Tax (NPAT) for the period from continuing operations
increased 18.9% to $30.7 million
• Total Group Reported Net Loss after Tax, including the impairment of Torpedo7 assets and
restructuring costs, of $23.7 million
• Net Debt of $18.7 million, significantly down from $83.4 million at FY23 H1, with available
liquidity of $471.3 million
• FY24 Interim Dividend declared 5.0 cents per share.

The Warehouse Group has announced half year results for the six months ending 28 January 2024,
reporting a Net Loss After Tax of $23.7 million.
The Group announced on 22 February 2024 that it had sold the Torpedo7 business to Tahua Partners
Limited, and the Group’s half year financial performance was impacted by the $55.5 million
Torpedo7 operating loss and non-cash impairment of assets from the sale of Torpedo7.
The Group achieved an adjusted NPAT from continuing operations of $30.7 million, an increase of
18.9% on the same period last year.
The Warehouse Group Chief Executive Officer Nick Grayston said the result was a sobering outcome
for the Group.
“The sale of Torpedo7 has had a severe impact on the Group's financial performance this half. While
the disposal of Torpedo7 means we have incurred significant write-downs, it allows us to redirect

1
The Group announced on 22 February 2024 that it had sold the Torpedo7 business to Tahua Partners Limited.
Torpedo7 is treated as assets held for sale as at 28 January 2024, with the trading performance for this
business segment excluded from continuing operations and presented separately in the Income Statement in
the Group interim financial statements for the 26 weeks ending 28 January 2024.
All financial results in this presentation are reported on a continuing operations basis unless otherwise
stated.

2

our focus towards our core brands and build on the $30.7 million in Adjusted NPAT from our
continuing operations.
“As a further part of our strategic reset, we intend to sell or close TheMarket.com by the end of the
financial year. We are re-directing our focus and learnings into growing Group Marketplace on The
Warehouse site and app, where we are now seeing improved profitability.
“When we launched TheMarket.com in 2019, it represented a strategic diversification of our
business, allowing us to expand our supplier partnerships and offer customers a broader product
range. We have, however, been unable to achieve the organic growth required to sustain the
platform profitably. It’s time to draw a line under TheMarket.com as a separate entity and shift our
marketplace focus to The Warehouse.
“In making these choices to simplify our business, we’re acknowledging that we didn’t create the
growth or profitability that we wanted to, or in the timeframe we needed in these businesses. These
calls are needed to set us up to be a much leaner, sharper-focused Group in the future. Our core
brands are the bedrock of the Group and now have our undivided attention.
“We’re already seeing some green shoots from our decisions, such as a 160-basis points
improvement in Group gross profit margin and continued tight control of our costs to drive margin
improvement.”
GROUP PERFORMANCE
The Group reported total sales of $1.6 billion for the half year, down 4.9% against a strong first half
sales performance in FY23 H1. The first half saw generally softer sales in a challenged consumer
spending period. Sales recovered slightly in the second quarter, with sales down 4.3% in Q2
compared with down 5.8% in Q1.
“Much of this reduction in sales was driven by a decline in online sales as we focus on profitable
performance. If we remove the impact of store changes year-on-year and exclude online, sales were
only down 1.4% compared to our last half year,” says Mr Grayston.
“Consumer spending across the New Zealand economy remains subdued, with the impacts of
inflation, higher interest rates, and increased living costs on customers’ household budgets
impacting discretionary spending.
“Our focus on improving gross margin delivered an outcome of 34.3% for FY24 H1. This is a 160-basis
point increase from 32.7% in FY23 H1 and back above pre-Covid levels of FY20 H1. Cost-to-serve was
reduced, driven by distribution centre efficiencies, reduced freight costs and cost recovery
decisions.”
Cost of Doing Business decreased 1.5% to $516.7 million in FY24 H1, due to a decrease in labour
costs, which the Group managed closely to meet sales slowdown. Cost management was also
challenged by increased amortisation as our investment in information systems comes online.
Operating Profit increased 14.9% to $43.0 million as a result of a significant reduction in the loss of
TheMarket.com, improved online sales contribution, enhanced grocery profitability and increased
operational productivity to control employee cost.

3

The Group strengthened its Balance Sheet with increased operating and net cash flow, leading to
lower net debt of $18.7 million, down from $83.4 million at FY23 H1. A significant reduction in
inventory contributed to the improvement in working capital and operating cash flow.
“A combination of tight control on capital expenditure and the fact we are now through the peak of
our IT upgrade programme, has resulted in our total project spend reducing to $50.2 million in FY24
H1, compared to $81.6 million in FY23 H1. Total FY24 project expenditure is expected to be around
$80 million, compared to $154.4 million in FY23,” says Mr Grayston.
BRAND PERFORMANCE
Mr Grayston acknowledged what the team has achieved despite challenging trading conditions.
“Many Kiwi families are feeling the pinch and we know every dollar counts. We’re seeing customers
seek out value on the essentials, which is putting pressure on big-ticket items, impacting our brands
across the board.”
The Warehouse
The Warehouse sales were down 4.7% in FY24 H1 against the prior period, down 4.9% in Q1 and
down 4.6% in Q2. The Warehouse gross profit margin improved 250 basis points to 38.8%. Same
Store Sales, excluding online, were down 2.0%.
“Grocery continued to grow with sales up 11.7% and making up 20.2% of The Warehouse sales. In
particular, pantry sales were up 31.4% and chilled and frozen sales were up 20%. We’re also
improving profitability, growing grocery gross profit margin by 290 basis points and improving EBIT.
“An increasing number of Kiwi families are choosing to shop with us as they search for affordable
groceries. We’ve continued our expansion of fresh produce, rolling out more essentials at great
prices, and launched a trial of frozen ready-made-meals in our Manukau store.
“While its pleasing to see grocery growing, we’ve seen more subdued sales in our apparel and home
offerings, and we’re working hard to improve the performance of these critical categories.”
The Warehouse gross profit margin improved 250 basis points to 38.8%.
Warehouse Stationery
Warehouse Stationery sales were down 5.0% on the previous period, with a 4.0% decrease in Q1 and
a 5.8% decrease in Q2. Same Store Sales, excluding online, were down 1.4%. This reflects the
cautious consumer environment, where purchases have been scaled back or postponed.
“Our back-to-school season, traditionally a bustling time for us, was subdued this year as customers
pared down their school lists to stock up on the absolute essentials.”
Warehouse Stationery gross profit margin also improved 70 basis points to 46.6%.
Noel Leeming
Noel Leeming sales decreased 2.2% on prior period as we continue to see the impacts of the high
cost of living. However, sales recovered in FY24 Q2 with 0.1% growth in sales compared to a decline
of 5.1% in FY24 Q1. Same Store Sales, excluding online, were down 0.2%.

4

Noel Leeming gross profit margin decreased 10 bps to 21.7% as we continued to meet the market
and stay competitive on price, particularly during major trade events like Black Friday and Boxing
Day sales.
DIVIDEND
The Board is pleased to declare an FY24 interim dividend of 5.0 cents per share.
Chair Joan Withers says, “The Board and Management are acutely aware of the impact the Group’s
recent performance has had on our shareholders and we are clear on the swift action needed to
deliver sustainable growth and value. We remain confident in the underlying strength of our
business and our ability to navigate through these challenges.”
The record date for the dividend will be 8 April 2024 and will be paid on 23 April 2024.
OUTLOOK
Looking ahead, the Group expects tough retail market conditions to continue.
“We believe the macro-economic climate will remain difficult, and it is challenging to predict how
cautious consumer spending will impact sales across all our brands,” says Mr Grayston.
“Our second half is now underway, and we’ve seen much tougher trade in February with sales
decline in the low teens. In March, we’ve seen some improvement with our sales decline returning
to be more in line with the level of decline experienced in our first half.
“Given the unpredictability we’re seeing and that we expect the retail environment to remain
challenging with subdued customer spending, we will not be providing an outlook for year end but
we will share a Q3 Trading Update in May 2024.
“Our focus remains on strengthening our core brands, delivering better products at great value, and
managing our costs. We’re very focused on improving our product ranges and there are some
fantastic products landing in our new winter range with more to come.”

ENDS
All financial results in this release are reported on a continuing operations basis unless otherwise
stated.
More information about The Warehouse Group’s FY24 interim result can be found in the results
presentation and interim financial statements on the NZX and at
https://www.thewarehousegroup.co.nz/investor-centre
Contact details regarding this announcement:
Investors and Analysts: Celia Mearns, Acting Chief Financial Officer
To be contacted via Kim Russell +64 9 488 3285 or +64 21 452 860
Media: Julian Light, Corporate Affairs Chapter Lead +64 21 243 8528
Media.enquiries@thewarehouse.co.nz

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FY24 Interim Results
Six months ending 28 January 2024
20 March 2024

03
08
16
26
29
36
2
Chair’s Update –Joan Withers
Group Update –Nick Grayston
Group Financial Results –Celia Mearns
FY24 Outlook
Appendix –Additional Information
Glossary
CONTENTS
FY24 Interim Results

CHAIR’S UPDATE
3
JOAN WITHERS
FY24 Interim Results

4
•The Group announced on 22 February 2024 that it has sold Torpedo7 to Tahua Partners Limited. This had
a one-off, non-cash, pre-tax impairment impact of $60.1 million in the half year income statement,
resulting in an overall Group reported Net Loss After Tax of $23.7 million.
•The Group reported Continuing Sales
1
of $1.6 billion for the 26 weeks ending 28th January 2024, down
4.9% compared to strong sales of $1.7 billion in FY23 H1.
•The Warehouse sales were $965.6 million, down 4.7%
•Warehouse Stationery sales were $117.9 million, down 5.0%
•Noel Leeming sales were $544.4 million, down 2.2%
•Sales have been challenged by the current economic environment with the impacts of inflation, higher
interest rates, and increased living costs on customers’ household budgets impacting discretionary
spending and therefore our brands.
•Our strategic reprioritisation is showing progress - our relentless focus on tight cost control and margin
improvement has delivered a 160-basis points improvement in Group gross profit margin.
•Continuing Adjusted NPAT
1
delivered $30.7 million, up 18.9% due to diligent cost management and
reduction initiatives.
•This is a sobering result for the Group. We are laser focussed on our core brands and we have moved
quickly to simplify our business to set us up to be a much leaner, sharper-focused Group.
FOCUS ON OUR CORE BUSINESS
Help
Kiwis live
better
every day
Better
products
at even
lower
prices
Increase
shareholder
value and
provide
sustainable
returns
1.The Group announced on 22 February 2024 that it had sold the Torpedo7 business to Tahua Partners Limited. The assets and liabilities of this business are classified as Held for
Sale, and the trading performance is excluded from continuing operations in the Group interim financial statements for the 26 weeks ending 28 January 2024. Refer to Note 18
and Note 19 of the interim financial statements for the 26 weeks ending 28 January 2024 for full details of discontinued operations and recognition of Torpedo7 as held for sale.
All financial results in this presentation are reported on a continuing operations basis (excluding Torpedo7) unless otherwise stated.

1,617.6
1,723.4
1,632.5
1,716.8
1,632.7
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
Continuing Group Sales
1
$m
83.4
48.1
18.7
Jan-23Jul-23Jan-24
1.All financial results in this presentation are reported on a continuing operations basis (excluding Torpedo7) unless otherwise stated. Refer to Note 18 and Note 19
of the interim financial statements for the 26 weeks ending 28 January 2024 for full details of discontinued operations and recognition of Torpedo7 as held for sale.
LIQUIDITY HEADROOM $471.3M
(FY23 H1: $381.6M)
25.8
30.7
FY23 H1FY24 H1
Down
4.9% vs
FY23 H1
Flat vs
FY22 H1
Continuing Gross Profit
1
$m
GP
margin
up
160bps
Continuing Adjusted NPAT
1
$mNet Debt $m
Adjusted
NPAT up
18.9%
5
FY24 Interim Results
FY24 H1 FINANCIAL HIGHLIGHTS
547.5
623.3
564.8
562.2
559.7
33.8%
36.2%
34.6%
32.7%
34.3%
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
Gross ProfitGross Profit Margin
Cost of Doing
Business down 1.5%
Grocery sales
up 11.7%
making up 20.2% of
TWL sales

•The Board is pleased to declare an FY24 interim
dividend of 5.0 cents per share.
•The Board and Management are acutely aware of the
impact the Group’s recent performance has had on our
shareholders.
•We are clear on the swift action needed to deliver
sustainable growth and shareholder value. We remain
confident in the underlying strength of our business and
our ability to navigate through these challenges.
•The record date for the dividend will be 8 April 2024
and will be paid on 23 April 2024.
6
FY24 INTERIM DIVIDEND
FY24 Interim Results
FY24
Interim
Dividend
5.0 cps

7
•The Warehouse Group is pleased to announce the appointment of
Tony Carter as an Independent Director to the company's board,
effective 1 May 2024.
•Tony is an outstanding appointment who brings wide-ranging retail,
commercial and governance experience to complement the
capability already in place around The Warehouse Group Board
table.
•He has previously served as managing director of supermarket
operator Foodstuffs and Mitre 10 stores, where he played a critical
role in their strategic development and expansion.
•Tony’s previous directorships have included roles at Fisher and
Paykel Healthcare, Air New Zealand, Fletcher Building, ANZ Bank
New Zealand, and Vector New Zealand.
•Tony Carter currently chairs the boards of MyFoodBag, Datacom
Group and The Interiors Group, and is a director of Ravensdown.
NEW DIRECTOR –TONY CARTER
FY24 Interim Results

8
GROUP UPDATE
CEO
NICK GRAYSTON

Reduce Cost of Doing Business – roll out
initiatives to manage labour cost and realise
information system spend benefits.
Project Expenditure – rebalance capital
expenditure to align with reprioritisation and
fit within reduced envelope.
•Reduced cost to serve due to improved cost per unit handled (“CPUH”), decreased online
freight expenses, lower detention charges, favourable FX and reduced shipping costs.
•Gross Profit Margin up 160bps.
•Working capital down from $104.0 million in FY23 H1 to $27.6 million in FY24 H1.
•Labour costs decreased $19.0. million, or 6.7%, despite a 4% increase in CEA.
•CODB decreased 1.5% in dollar terms, due to distribution centre and store efficiencies such
as shelf ready trays (“SRT”) but increased 120-basis points to 31.7% as % of sales.
Focus on operational performance –
minimise cost to serve, manage gross profit
margin and reduce working capital.
How are we doing?
9
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 to leverage competitive
advantage.
•Project expenditure was $50.2 million in FY24 H1, compared to $81.6 million in FY23 H1
and $154.4.m in FY23
•Reprioritised, cut some projects and achieved cheaper outcomes in others
•Project expenditure is expected to be around $80 million for FY24.
•Entered an agreement for the sale of the assets of Torpedo7.
•Hosting SKUs from TheMarket.com on The Warehouse online Group Marketplace.
•Considering options to close or sell the front end of TheMarket.com
•Grocery growth of 11.7%, making up 20.2% of The Warehouse sales.
•Over 9,000 individual grocery SKUs and 60 Market Kitchen products. Market Kitchen sales
were $8.4 million in FY24 H1, up 265% on prior period.
•Fresh fruit and vegetables offered in 22 The Warehouse stores.
•Improved grocery EBIT year on year.
•Over 1.9m members across our two biggest programmes (myNoelLeeming & MarketClub).
•MarketClub average spend +46% higher than non-members.
•MarketClub average monthly frequency +8% higher than non-members.
•Strong protection of first party data and customer privacy.
What we said we would do
2024 STRATEGIC PRIORITIES
Focus on improving the quality of our
sales – both in store and online.
•Online promotions reduced, freight recovery improved, and less marketing spend resulted in
improvement in online profitability across the Group.
•Gross Profit Margin improved 160bps and Gross Profit dollars only down 0.4%.
9

In February 2024, we announced the sale of Torpedo7 to Tahua Partners
Limited. While a tough decision and bittersweet to see Torpedo7 leave our
family of brands, the choice to sell means:
•It is the quickest, cleanest way to exit the business.
•The majority of permanent Torpedo7 team members stayed employed with
the new owners.
•Torpedo7 remains in New Zealand ownership to serve Kiwis who love the
brand.
The sale of Torpedo7 enables us to:
✓simplify the business
✓focus on our core The Warehouse, Warehouse Stationery and Noel
Leeming brands
✓improve Group financial performance.
FY24 Interim Results
2024 STRATEGIC PRIORITIES –T7 SALE
10

RESETTING OUR STRATEGIC DIRECTION
•Focus on three core brands
•Sell Torpedo7 and intend to
close or sell TheMarket.com
•Further CODB reduction
•Simplify digital platforms
•Replace core systems and
retire legacy systems to enable
functionality and drive
efficiency and cost-out over
time
•Better products in priority
categories
•Reenergising our positioning
as a value retailer
•Delivering an exciting
shopping experience
•Refreshed customer focus
•Organised to buy product
differently – particularly
Apparel, Home and Grocery
tribes
•Reorganised to focus on Go-
To-Market
•Create an energised and
empowered team culture
Simplify
the Group
Prioritise the customer
experience
Execute
at speed
11

•Sales $965.6m (down 4.7% on FY23 H1).
•Same Store Sales, excluding online, were down 2.0%.
•Gross profit margin up 250 bps to 38.8%.
•Grocery sales up 11.7%, making up 20.2% of total TWL
sales.
•Growth in grocery offset by decline in sales on home,
toys and apparel.
•88 stores.
•Online sales of $53.5m (5.5% of sales).
•C&C sales 52.1% of online fulfilment.
938.8
967.3
895.4
1,013.7
965.6
38.8%
42.2%
40.0%
36.3%
38.8%
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
SalesGross Profit Margin
Historical Sales ($m)
THE WAREHOUSE –HIGHLIGHTS

Historical Sales ($m)
WAREHOUSE STATIONERY –HIGHLIGHTS
133.8
136.6
122.0
124.1
117.9
43.6%
48.6%
46.9%
45.9%
46.6%
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
SalesGross Profit Margin
•Sales $117.9m (down 5.0% on FY23 H1).
•Same Store Sales, excluding online, were down 1.4%.
•Gross profit margin up 70 bps to 46.6%.
•Growth in print and copy and smart home offset by
decline in print & consumables, and stationery.
•66 stores, 41 SWAS stores.
•Online sales $9.5m (8.0% of sales).
•C&C sales 22.5% of online fulfilment.

512.8
593.2
582.7
556.7
544.4
22.6%
22.7%
22.5%
21.8%
21.7%
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
SalesGross Profit Margin
•Sales $544.4m (down 2.2% on FY23 H1).
•Same Store Sales, excluding online, were down 0.2%.
•Gross profit margin down 10 bps to 21.7%.
•Growth in communications, gaming, and tech
accessories.
•67 stores.
•Online sales $60.6m (11.1% of sales).
•C&C sales 66.6% of online fulfilment.
NOEL LEEMING –HIGHLIGHTS
FY24 Interim Results
Historical Sales ($m)

35% of private label sales from products with
sustainable attributes compared to 33% in FY23,
and 28% in FY23 H1.
Diverted 136.6 tonnes of post-consumer waste from
landfill – Soft plastics, e-waste, ink and toners, up from
99.5 tonnes in FY23 H1.
Over $1 million raised for New Zealand charities and
community groups in the half year.
50% female leaders.
50% female board members.
15
15
26 stores and sites powered by solar from 1
February 2024 – on track to convert all 233 stores and
sites to solar by 2026
1
.
Diverted 81.6% operational waste from landfill,
compared to 72.9% in FY23 and 69.5% in FY23 H1.
13 of the 28 The Warehouse stores which offer free EV
charging have been upgraded to 25kW DC
chargers.
Our people and
communities
15
PROGRESS ACROSS OUR SUSTAINABILITY BUILDING BLOCKS
1.26 stores and sites which switched to solar on 1 Feb include three Torpedo7 sites, of which two of these sites will move to
powering The Warehouse stores from 1 May. 233 stores and sites which will covert to solar by 2026 are all continuing
Group stores and sites excluding Torpedo7.
FY24 Interim Results
15

16
GROUP
FINANCIAL
RESULTS
ACTING CFO
CELIA MEARNS

For 26 weeks ended 28 January 2024
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 18 of this presentation and Note 5 of the Interim Financial Statements for the 26 weeks ending 28 January 2024.
2.Adjusted Net Profit After Tax (NPAT) is excluding NZIFRS16, before unusual items,and is a non-GAAP measure.For a reconciliation between Reported and Adjusted NPAT refer to Slide 18 of
this presentation and Note 5 of the Interim Financial Statements for the 26 weeks ending 28 January 2024.
All financial results in this presentation are reported on a
continuing operations basis unless otherwise stated.
•The first half saw generally soft sales in a challenged consumer
spending period following exceptional sales growth in FY23 H1.
Sales recovered slightly in the second quarter with sales down 5.8%
in Q1 and down 4.3% in Q2.
•The Warehouse FY24 H1 sales were down 4.7% to $965.6 million,
compared to its highest half year sales of $1.0 billion in FY23 H1,
which was going to be challenging to follow.
•Our focus on Gross Profit delivered results in the half with Gross
Profit Margin increasing 160 basis points compared to prior year.
•Cost of Doing Business (“CODB”) decreased in dollar terms, due
decrease in employee expenses as we managed labour to meet
sales slowdown, offset by increased depreciation and a marginal
increase in information systems costs. CODB increased as
percentage of sales from 30.5% to 31.7%.
•Adjusted NPAT from continuing operations was $30.7 million in FY24
H1, up 18.9% compared to FY23 H1.
•Reported NPAT from continuing operations was $31.8 million in
FY24 H1, up 34.6% compared to FY23 H1.
Continuing operations
$ million
FY24 H1FY23 H1
(restated)
Variance
Group Sales
1,632.7 1,716.8
-4.9%
Gross Profit
559.7 562.2
-0.4%
Gross Profit Margin %
34.3%32.7%160 bps
Cost of doing business (“CODB”)
516.7 524.8
-1.5%
CODB %
31.7%30.5%120 bps
Operating Profit (pre-IFRS16)
1
43.0 37.4
14.9%
Operating Profit Margin %
2.6%2.2%40 bps
Adjusted NPAT
2
from
continuing operations
30.7 25.8
18.9%
Reported NPAT from continuing
operations
31.823.734.6%
Reported NPAT attributable to
shareholders
(23.7)17.4
-236.3%
Operating Cash Flow
137.5 108.8
26.3%
Dividends (cps)
5.0 -
5.0
GROUP PERFORMANCE
17

1.The NZIFRS16 adjustment of $19.8 million in FY24 H1 (FY23 H1: $20.1 million) represents the backing out of pre-IFRS rent and the deduction of the Right of Use Asset Amortisation. Refer to
Note 4 of the Interim Financial Statements for the 26 weeks ending 28 January 2024.
2.Adjusted Net Profit After Tax (NPAT) is excluding NZIFRS16, before unusual items,and is a non-GAAP measure.Refer to Note 5 of the Interim Financial Statements for the 26 weeks ending
28 January 2024.
EBIT AND NPAT RECONCILIATION
•The Group restructured its operations in FY23 H1 to
lower its cost of doing business. Restructure costs of
$6.3 million ($4.5 million after tax) were incurred in the
prior half year.
•The NZIFRS16 adjustment of $19.8 million in FY24 H1
(FY23 H1: $20.1 million) represents the backing out of
pre IFRS rent and the deduction of the Right of Use
Asset Amortisation.
•On 22 February 2024, the Group announced the sale of
the assets of Torpedo7 to Tahua Partners Limited. This
resulted in a non-cash pre-tax impairment of Torpedo7
assets of $60.1 million. The after-tax impairment plus
trading losses amount to $55.5 million loss from
discontinued operations in FY24 H1.
18
$ million
FY24 H1FY23 H1
(restated)
Variance
Earnings before interest and taxation (EBIT):
Reported EBIT from continuing
operations
62.851.222.6%
Restructuring Costs- 6.3-100.0%
Adjustments for NZ IFRS 16
1
(19.8)(20.1)-1.3%
Operating Profit (pre-IFRS16) from
continuing operations
43.037.414.9%
Net Profit After Tax (NPAT):
Reported Net (Loss)/Profit After Tax(23.7)17.4-236.3%
Loss from discontinued operations
(net of tax)
55.56.3782.3%
Reported NPAT from continuing
operations
31.823.734.6%
Restructuring Costs-4.5-100.0%
Adjustments for NZ IFRS 16
1
(1.1)(2.4)-51.4%
Adjusted NPAT from continuing
operations
2
30.725.818.9%

$ millionFY24 H1FY23 H1Variance
Sales
73.0
96.4
(24.2%)
Gross Profit
24.6
30.2
(18.4%)
Gross Profit Margin %33.7%
31.3%
240 bps
Cost of doing business (“CODB”)
33.3
35.9
(7.3%)
CODB %45.5%
37.2%
830 bps
EBIT (incl IFRS16)
(8.6)
(5.7)
(51.9%)
EBIT Margin %(11.8%)
(5.9%)
(590 bps)
Impairment of assets(60.1)
-
n/a
Loss from Discontinued Operations
(55.5)
(6.3)
n/a
The Group completed the first stage of its planned sale of Torpedo7 when it executed a business
asset sale agreement with Tahua Partners Limited on 22 February 2024.
As part of the Sale and Purchase Agreement, Tahua Partners Limited will purchase certain
Torpedo7 business assets for $1 at the end of March 2024, which includes plant and equipment,
inventory, cash in store and the Torpedo7 brand, and will assume its obligations for most store
leases, honouring gift cards, customer orders not yet delivered, and customer returns.
The assets sold, along with the lease and other liabilities assumed by the Purchaser are
classified as held for sale as at 28 January 2024.
The loss of $55.5 million, primarily due to impairment of assets, is recognised in the income
statement for the 26 weeks ended 28 January 2024.
1.Refer to Note 18 and Note 19 of the interim financial statements for the 26 weeks ending 28 January 2024 for full details of
discontinued operations and recognition of Torpedo7 as held for sale as at 28 January 2024.
19
TORPEDO7 SALE – FINANCIAL IMPACT

671.0
704.7
596.5
727.3
685.4
FY20FY21FY22FY23FY24
$million
FY24 Q1FY23 Q1
Var to
FY23 Q1
FY24 Q2FY23 Q2
Var to
FY23 Q2
FY24 H1FY23 H1
Var to
FY23 H1
Same store
sales
2
vs
FY23 H1
The Warehouse
394.2 414.6 (4.9%)571.4599.1 (4.6%)965.61,013.7 (4.7%)(2.0%)
Warehouse Stationery
54.6 56.9 (4.0%)63.367.2 (5.8%)117.9124.1 (5.0%)(1.4%)
Noel Leeming
234.1 246.6 (5.1%)310.3310.1 +0.1%544.4556.7 (2.2%)(0.2%)
Other
1
2.5 9.2 (72.8%)2.313.1 (82.4%)4.822.3 (78.6%)(78.6%)
Total Group Sales
685.4727.3(5.8%)947.3989.5(4.3%)1,632.71,716.8(4.9%)(1.4%)
•The Warehouse Group sales were down 5.8% in FY24 Q1
compared to a record strong period in FY23 Q1.
•Group sales in the Q2 peak trading period were challenged
– and were down 4.3% against FY23 Q2.
•The Warehouse FY24 Q1 sales were down 4.9% against
FY23 Q1 but were up significantly 32.2% against FY22 Q1.
The Warehouse FY24 Q2 sales were down 4.6% compared
to FY23 Q2.
•Noel Leeming sales recovered from decline of 5.1% in Q1 to
sales growth of 0.1% in Q2.
•Group half year continuing sales decreased 4.9% compared
to FY23 H1.
1.Other sales includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding Gross Merchandise Value(GMV)), and other Group operations and eliminations.
2.Same store sales removes store changes year on year and excludes online sales.
CONTINUING SALES - QUARTERLY ANALYSIS
Q1 Sales ($million)
20
Q1 sales
down 5.8%
vs FY23 Q1,
up 14.9%
vs FY22 Q1
Q2 sales
down 4.3%
vs FY23 Q2,
down 8.6%
vs FY22 Q2
946.6
1,018.71,036.0
989.5
947.3
FY20FY21FY22FY23FY24
Q2 Sales ($million)

36.3%
45.9%
21.8%
38.8%
46.6%
21.7%
The WarehouseWarehouse StationeryNoel Leeming
FY23 H1FY24 H1
Gross Profit Margin by BrandGroup Gross Profit Margin
33.8%
36.2%
34.6%
32.7%
34.3%
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1
Group Continuing Operations
GROSS PROFIT MARGIN
Group Gross Profit Margin – by brand
1
FY23 H1 to FY24 H1
Gross
Profit
Margin
up
160bps
•The Warehouse and Warehouse Stationery saw year on year growth in Gross Profit Margin. This has led to overall Group Gross Profit
Margin of 34.3%, an increase of 160 basis-points. Noel Leeming remained relatively flat.
•The Warehouse is the main driver of the overall group result making up 66.9% of continuing operations Gross Profit and saw an increase
of 250 bps in Gross Profit Margin to 38.8%.
•Whilst increased promotional activity was needed to drive top line sales, particularly in the apparel and home categories, some of the
headwinds we faced in FY23 including adverse FX rates, high shipping costs and supply chain congestion leading to container detention
charges, have eased resulting in overall Gross Profit Margin growth in FY24 H1.
1.Group gross profit margin movement calculated for each brand’s change in gross profit margin as a percentage of Group sales.
21

COST OF DOING BUSINESS
1.Cost of Doing Business is presented excluding the impact of NZ IFRS16.
CODB Movement ($m) – FY23 H1 to FY24 H1
CODB ($m)
•Employee expenses decreased $19.0 million (6.7%) with close
management to meet sales slowdown. In particular, Store
Support Office labour decreased against prior year due to the
restructuring that took place in FY23 H2.
•Depreciation and amortisation increased, driven by significant
investment in project spend over the last few years.
•There were increases in other expenses due to increased
information systems costs, and increased store rent &
occupancy costs, partially offset by reduction in marketing
spend due to reduced investment in TheMarket.com.
•On a percentage of sales basis, CODB increased from 30.5% to
31.7% in FY24 H1.
•SaaS spend and IT running costs including employee expenses
(excluding amortisation) have increased as our investment in
information systems continues and completed projects come
online.
22
30.5%
31.7%
CODB as
% of sales
increased
120 bps
284.4
265.4
29.7
35.0
63.6
64.8
147.1
151.5
524.8
516.7
FY23 H1FY24 H1
Employee Exp.Depn & Amort Exp.Lease Exp.Other Exp.

$ millionJan-2024Jan-2023Variance
Inventory
492.7 617.8
(125.1)
Trade and other receivables
116.0 112.7
3.3
Trade and other payables
(511.3)(552.0)
40.7
Held for sale assets/(liabilities)
(4.1)-
(4.1)
Provisions
(65.7)(74.5)
8.8
Working Capital
27.6104.0
(76.4)
Fixed Assets
298.7334.1
(35.4)
Investment
- 3.5
(3.5)
Funds Employed
326.3441.6
(115.3)
Tax Assets
108.6 111.4
(2.8)
Derivative asset / (liability)
1.4 (22.3)
23.7
Goodwill and Brands
73.0 73.0
-
Right of Use Assets
617.2 654.6
(37.4)
Capital Employed
1,126.51,258.3
(131.8)
Shareholders’ Equity
351.8375.2
(23.4)
Minority Interests
1.0 0.8
0.2
Net Debt
18.7 83.4
(64.7)
Lease Liabilities
755.0 798.9
(43.9)
Sources of Funds
1,126.51,258.3
(131.8)
Liquidity
471.3381.689.7
•The Balance Sheet for FY24 H1 includes a reclassification of
Torpedo7 assets and liabilities to Held for Sale, However, the
prior year includes Torpedo7. Balances are generally lower in
FY24 H1 partially from the reclassification.
•Inventory (excluding Torpedo7 for both years) is $61.0 million
lower with careful working capital management.
•Fixed assets decreased due to lower capital expenditure,
increased depreciation, and Torpedo7 assets now classified as
held for sale.
•As a result of increased operating cash flow and reduced capital
expenditure, Net Debt decreased from $83.4 million in FY23 H1
to $18.7 million at FY24 H1.
•Committed bank facilities were $490.0 million at FY24 H1,
providing liquidity of $471.3 million.
As at 28 January 2024
BALANCE SHEET
23

$ millionFY24 H1FY23 H1Variance
Trading EBITDA
142.9 131.0
11.9
Discontinued EBITDA
(3.2)(0.4)
(2.8)
Restructuring costs
- (6.3)
6.3
Taxes Paid
(10.4)(17.2)
6.8
Interest Paid (incl Leases)
(22.4)(20.4)
(2.0)
Working Capital
29.3 20.7
8.6
Other items
1.3 1.4
(0.1)
Operating Cash Flow
137.5 108.8
28.7
Capital Expenditure
(28.7)(64.9)
36.2
Divestments
0.2 -
0.2
Lease principal repayments
(51.6)(50.7)
(0.9)
Purchase of minority
- (0.7)
0.7
Dividends Received
0.1 0.1
-
Dividends Paid
(27.9)(34.9)
7.0
Other
(0.2)0.1
(0.3)
Net Cash Flow
29.4 (42.2)
71.6
Opening Net Debt
(48.1)(41.2)
(6.9)
Closing Net Debt
(18.7)(83.4)
64.7
1.Trading EBITDA represents Earnings before interest, taxation, unusual items, depreciation and amortisation.
2.Interest paid includes $18.2 million interest on lease liabilities (FY23 H1: $16.9 million) . Refer to Note 4 of
the Interim Financial Statements for the 26 weeks ending 28 January 2024.
3.Capital expenditure is presented after the impact of Cloud Computing adjustments (“SaaS”) and is part of
total project spend of $50.2 million in FY24 H1 (refer to Slide 25).
•Operating cash flow increased 26.3% to $137.5 million, with
increased trading EBITDA, no restructuring costs in the period,
less tax expense paid and improved working capital.
•Interest paid increased $2.0 million compared to FY23 H1,
primarily due to increased interest on lease liabilities.
•Capital expenditure was significantly lower at $28.7 million in FY24
H1, as the Group focussed on purposeful reduction of capital
expenditure after peak spending on information systems in the last
few years come to an end.
•Dividends payments were lower in FY24 H1 based on the FY23
final dividend of 8cps, compared to the FY22 final dividend of
10cps paid in FY23 H1.
CASH FLOW
24
For 26 weeks ended 28 January 2024

$millionCapex SpendPrepaymentsSaaS spend
1
Opex Spend
Total Project
Expenditure
Core Systems
4.7 8.1 7.7 2.022.5
Store Development
5.8 --0.15.9
Other Information Systems
6.3 0.1 1.8 0.7 8.9
Digital and Customer
1.4 -0.5 0.1 2.0
Supply Chain
0.6 -0.6 0.6 1.8
Other
8.9 --0.19.0
Discontinued operations
0.1---0.1
FY24 H1 Total Project Spend
27.8 8.2 10.6 3.6 50.2
FY23 H1 Total Project Spend
63.53.910.04.281.6
PROJECT EXPENDITURE
•Capital expenditure was $27.8 million
2
in FY24 H1, compared to $63.5 million in FY23 H1 and $113.2 million in the full year FY23.
•Total project expenditure
3
was $50.2 million in FY24 H1, compared to $81.6 million in FY23 H1 and $154.4 million in the full year FY23.
•Core Systems investment includes development of ERPFI, Group Order Management System, our new people and HR system Human
Capital Management, and ERP Relex on-demand forecasting.
•Store development in FY24 H1 included the opening of new stores in Wanaka for The Warehouse, Warehouse Stationery and Noel
Leeming. Our new Wanaka Warehouse Stationery store brought the total number of SWAS stores to 41, compared to 40 at FY23.
•We have rebalanced capital expenditure and FY24 total project expenditure (including capital expenditure, prepayments and SaaS/Opex
spend) is expected to be around $80 million.
17.0%
20.7%
22.5%
5.1%
2.1%
32.1%
0.5%
Capital
Expenditure
$27.8m
1.Software as a Service (SaaS) projects are a blend of capitalised and expensed spend. SaaS spend refers to costs of these projects which are expensed in the Income Statement.
2.Refer to Note 10 for capital expenditure spend in Property, Plant and Equipment. The difference between capital expenditure of $27.8 million above and in Note 10, and capital expenditure per Statement
of Cash Flows of $28.7 million is due to timing of accruals and creditor payments.
3.Total project expenditure includes capital expenditure, prepayments, SaaS expenditure and project operating expenditure.
25
For 26 weeks ended 28 January 2024

FY24 OUTLOOK
26
FY24 OUTLOOK
FY24 Interim Results

27
27
FY24 OUTLOOK
FY24 Interim Results
Looking ahead, the Group expects tough retail market conditions to
continue.
We believe the macro-economic climate will remain difficult, and it is
challenging to predict how cautious consumer spending will impact sales
across all our brands.
Our second half is now underway, and we’ve seen much tougher trade in
February with sales decline in the low teens. In March, we’ve seen some
improvement with our sales decline returning to be more in line with the level
of decline experienced in our first half.
Given the unpredictability we’re seeing and that we expect the retail
environment to remain challenging with subdued customer spending, we will
not be providing a full year outlook, but we will share a Q3 Trading Update in
May 2024.

THANK YOU
HELPING KIWIS LIVE
BETTER EVERY DAY
28

ADDITIONAL INFORMATION
APPENDIX
29
FY24 Interim Results

59.1%
7.2%
33.4%
0.3%
FY24 H1 Continuing Group Sales
$1,632.7m
1.Other sales (0.3%) includes revenue from TheMarket.com 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 18 of this presentation and Note 5 of the
Interim Financial Statements for the 26 weeks ended 28 January 2024.
3.Other items in Operating Profit include corporate costs and other unallocated overheads.
$965.6m$544.4m$117.9m
(4.7%)(5.0%)(2.2%)
FY24 H1 Continuing Operating Profit
(2)
($m)
Other
(3)
TOTAL
GROUP
Core Agile Brands $60.8m
30
DIVISIONAL SUMMARY

DIVISIONAL SUMMARY
SalesGross ProfitOperating Profit
(1)
FY24 H1
$ million
FY23 H1
$ million
Variance
%
FY24 H1
$ million
% margin
FY23 H1
$ million
% margin
Variance
%
FY24 H1
$ million
% margin
FY23 H1
$ million
% margin
Variance
%
965.6 1,013.7 (4.7%)374.3 368.3 1.6%38.8 41.3 (6.0%)
38.8%36.3%+250 bps4.0%4.1%-10 bps
117.9 124.1 (5.0%)55.0 57.0 (3.4%)7.7 8.9 (13.0%)
46.6%45.9%+70 bps6.6%7.2%-60 bps
544.4 556.7 (2.2%)118.2 121.1 (2.4%)14.3 17.2 (17.1%)
21.7%21.8%-10 bps2.6%3.1%-50 bps
1,627.9 1,694.5 (3.9%)
547.5 546.4
0.2%
60.8 67.4
(9.8%)
33.6%32.2%+140 bps3.7%4.0%-30 bps
2.5 21.9 (88.7%)(5.3)(16.0)67.0%
2.3 0.4 495.1%12.215.8(22.8%)(12.5)(14.0)10.2%
1,632.7 1,716.8 (4.9%)
559.7562.2
(0.4%)43.037.4 14.9%
34.3%32.7%+160 bps2.6%2.2%+40 bps
31
Other
(2)
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 18 of this presentation and Note 5 of the Interim Financial Statements for the 26 weeks ending 28 January 2024.
2.Other items in operating profit include corporate costs and other unallocated overheads.
CORE
BRANDS
FY24 Interim Results

$ million
FY24 H1FY23 H1Variance
Sales
965.61,013.7
(4.7%)
Gross Profit
374.3 368.3
1.6%
Gross Margin %38.8%36.3%+250 bps
Cost of Doing Business (CODB)
335.5 327.0
2.6%
CODB %34.8%32.2%+260 bps
Operating Profit
38.8 41.3
(6.0%)
Operating Margin %4.0%4.1%(10) bps
Online sales
53.570.9
(24.6%)
Online as a % of sales
5.5%7.0%
(150) bps
Click and Collect as % of online sales
52.1%50.4%
+170 bps
Number of stores
8888
-
NEW ZEALAND’S LEADER ON VALUE
For 26 weeks ended 28 January 2024
32
•Sales were down 4.7% against the prior period, as the retail sector faced
challenges in an inflationary environment as customers scaled back and
prioritised other spend.
•Lower Online sales compared to last year driven by an 18.5% decline in
online traffic resulting in a 23.8% decline in online transactions.
•Total sales impacted by decline in transaction, foot traffic and conversion as
well as stock availability, partially offset with an increase in average basket
value.
•Grocery enjoyed another growth year with Pantry up 31.4%, and Chilled
and Frozen up 20.0%. Home and Apparel categories had a tough half and
additional promotional activity was needed in these areas to generate top
line sales.
•Gross Profit Margin was up 250 bps, positively impacted by higher inflow
margin, reduced shipping rates and container detention, favourable FX and
reduced online sales leading to lower freight costs.
•CODB increased by $8.5m driven by higher occupancy costs due to rising
CPI, increased A&P investment, higher group recharges and depreciation,
offset by savings in store labour, DC and Fulfilment Centre.
•Since FY23 H1, we closed The Warehouse Belfast and opened The
Warehouse Wanaka stores. The Warehouse store in Wellington has been
unable to trade since June 2023 due to fire damage.

1.Grocery categories include pantry, confectionery and snacks, beverages, household consumables, health and beauty, and pet care.
33
Grocery sales growth 11.7%
vs FY23 H1
Pantry up 31.4%
Chilled and Frozen up 20.0%
Cleaning & Household up 19.7%
22 The Warehouse stores with
fresh fruit & vegetables
Grocery sales contributing
20.2% of The Warehouse sales
up from 17.3% in FY23 H1
Over 9,000 grocery SKUs and
60 Market Kitchen products
Grocery gross profit margin
improvement up 380bps
STRENGTHENING OUR GROCERY OFFERING
FY24 Interim Results

$ million
FY24 H1FY23 H1Variance
Sales
117.9124.1
(5.0%)
Gross Profit
55.0 57.0
(3.4%)
Gross Margin %46.6%45.9%+70 bps
Cost of Doing Business (CODB)
47.3 48.1
(1.7%)
CODB %40.0%38.7%+130 bps
Operating Profit
7.7 8.9
(13.0%)
Operating Margin %6.6%7.2%(60) bps
Online sales
9.511.7
(18.6%)
Online as a % of sales
8.0%9.4%
(140) bps
Click and Collect as % of online sales
22.5%19.0%
+350 bps
Number of stores
6667
(1)
GET THE SMALL STUFF RIGHT
34
For 26 weeks ended 28 January 2024
•Sales were down 5.0% on the prior period, reflecting the cautious
consumer environment where purchases have been cut back or
deferred.
•Stores experienced a decline in both transactions 2.0% and foot
traffic 0.8%. While online sales decreased as a percentage of total
sales, the proportion of click and collect fulfilment increased.
•Print & Copy Centre category sales were the highlight, generating a
sales increase of 16.4% on the prior period.
•The resultant Gross Profit decrease was partially mitigated by better
Gross Profit Margin in Print & Consumables, Art & Craft and
Technology.
•CODB spend was lower compared to prior period as we annualised
store closures and reduced the Store Labour envelope with SWAS
integrations.
•Since FY23 H1, we have opened new SWAS store in Wanaka and
closed the standalone Warehouse Stationery Johnsonville store in
FY23 H2 and Belfast store in FY24 H1.
•Warehouse Stationery SWAS stores increased to 41 at FY24 H1,
including the new Wanaka store which opened in October 2023.

$ million
FY24 H1FY23 H1Variance
Sales
544.4556.7
(2.2%)
Gross Profit
118.2 121.1
(2.4%)
Gross Margin %21.7%21.8%(10) bps
Cost of Doing Business (CODB)
103.9 103.9
0.0%
CODB %19.1%18.7%40 bps
Operating Profit
14.3 17.2
(17.1%)
Operating Margin %2.6%3.1%(50) bps
Online sales
60.665.8
(7.9%)
Online as a % of sales
11.1%11.8%
(70) bps
Click and Collect as % of online sales
66.1%56.4%
+970 bps
Number of stores
6768
(1)
BEST OF TECH AND GLOBAL BRANDS
35
For 26 weeks ended 28 January 2024
•Sales decreased 2.2% on prior period as we continue to see the
impacts of high cost of living. We saw customers spend to deals, so
saw success across major trading events, Black Friday and Boxing
Day, however momentum didn’t hold in between those periods.
•While we saw customers shop key events, we saw customers shop
down to lower priced options, impacting overall sales across all
electronic categories (excl. cellular phones). Better availability led to
increased sales in cellular. A slowing of the overall construction and
new build market, has caused a decline in cookware categories.
•Online sales held up in Noel Leeming more than the other core
brands, making up 11.1% of total sales. We are seeing customer
shopping patterns shift to researching online but shopping in store.
Click & collect remained our customers’ most popular fulfilment
option, accounting 66.1% of online sales fulfilment.
•Gross Profit Margin fell 10 bps as a result of meeting the market to
stay competitive on price.
•CODB was managed well and landed flat to last year.
•Since FY23 H1, we closed Dunedin George Street, Belfast,
completed the Warkworth relocation and opened a new store in
Wanaka. Bringing total stores to 67. The Penrose Auckland
Clearance Centre has since closed in February 2024.

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
36

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 interim financial
statements for the 26 weeks ending 28 January 2024, 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.
37

---

For and on behalf of the Board
Joan WithersDean Hamilton
ChairChair of the Audit and Risk Committee
19 March 2024
The Warehouse Group Limited
For the 26 weeks ended 28 January 2024
Interim Financial Statements

Consolidated Income Statement
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Continuing operations
Retail sales
4
1,632,746 1,716,792 3,236,912
Cost of retail goods sold(1,073,023)(1,154,640)(2,148,681)
Gross profit559,723 562,152 1,088,231
Other income2,499 3,023 8,328
Employee expense(265,386)(284,346)(535,770)
Depreciation and amortisation expense
4
(80,054)(73,531)(151,891)
Other operating expense(153,980)(149,804)(286,615)
Operating profit from continuing operations
4
62,802 57,494 122,283
Unusual items
5
- (6,275)(13,561)
Earnings before interest and tax from continuing operations62,802 51,219 108,722
Net interest expense (including lease liability interest)(17,813)(17,767)(37,192)
Profit before tax from continuing operations44,989 33,452 71,530
Income tax expense(12,933)(9,834)(21,468)
Net profit for the period from continuing operations32,056 23,618 50,062
Discontinued operations
Loss from discontinued operations (net of tax)
18
(55,506)(6,291)(20,125)
Net profit/(loss) for the period(23,450)17,327 29,937
Attributable to:
Shareholders of the parent(23,659)17,363 29,810
Minority interests209 (36)127
(23,450)17,327 29,937
Profit/(loss) attributable to shareholders of the parent relates to:
Profit from continuing operations31,847 23,654 49,935
Loss from discontinued operations(55,506)(6,291)(20,125)
(23,659)17,363 29,810
Earnings per share attributable to shareholders of the parent:
Basic earnings per share(6.9) cents5.0 cents 8.6 cents
Basic earnings per share from continuing operations9.2 cents 6.8 cents 14.5 cents
Basic earnings per share from discontinued operations(16.1) cents(1.8) cents(5.9) cents
Diluted earnings per share(6.8) cents5.0 cents 8.6 cents
Diluted earnings per share from continuing operations9.2 cents 6.8 cents 14.4 cents
Diluted earnings per share from discontinued operations(16.0) cents(1.8) cents(5.8) cents
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Net profit/(loss) for the period(23,450)17,327 29,937
Items that may be reclassified subsequently to the income statement
Movement in foreign currency translation reserve60 (257)(206)
Movement in hedge reserves (net of tax)396 (27,337)(13,327)
Total comprehensive income/(loss) for the period(22,994)(10,267)16,404
Attributable to:
Shareholders of the parent
(23,203)(10,231)16,277
Minority interest209 (36)127
Total comprehensive income/(loss)(22,994)(10,267)16,404
Attributable to:
Total comprehensive income/(loss) from continuing operations32,512 (3,976)36,529
Total comprehensive loss from discontinued operations(55,506)(6,291)(20,125)
Total comprehensive income/(loss)(22,994)(10,267)16,404
Total comprehensive income/(loss) from continuing operations attributable to:
Shareholders of the parent32,303 (3,940)36,402
Minority interest209 (36)127
Total comprehensive income/(loss) from continuing operations32,512 (3,976)36,529
Comparative amounts for the 2023 financial year were restated to classify discontinued operations as a single amount (refer note:18).
2

Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
ASSETS
$ 000 $ 000 $ 000
Current assets
Cash and cash equivalents
14
38,557 32,774 28,330
Trade and other receivables
7
88,288 98,097 76,274
Inventories
6
492,680 617,756 493,308
Derivative financial instruments
15
4,401 3,962 5,208
Taxation receivable9,243 3,624 5,038
633,169 756,213 608,158
Assets held for sale
19
25,713 - -
Total current assets658,882 756,213 608,158
Non current assets
Trade and other receivables
7
27,745 14,591 20,747
Property, plant and equipment
10
205,802 240,942 222,289
Intangible assets
11
165,921 166,108 168,239
Right of use assets
12
617,209 654,619 661,025
Investment in associate- 3,520 -
Deferred taxation99,400 107,821 88,476
Total non current assets1,116,077 1,187,601 1,160,776
Total assets1,774,959 1,943,814 1,768,934
LIABILITIES
Current liabilities
Borrowings
14
57,300 116,200 76,400
Trade and other payables
8
511,414 551,964 407,339
Derivative financial instruments
15
3,022 25,704 7,320
Lease liabilities
13
89,981 96,306 98,996
Provisions
9
42,706 53,044 49,292
704,423 843,218 639,347
Liabilities connected to assets held for sale
19
29,765 - -
Total current liabilities734,188 843,218 639,347
Non current liabilities
Derivative financial instruments
15
- 653 -
Lease liabilities
13
665,039 702,636 704,162
Provisions
9
22,974 21,408 22,405
Total non current liabilities688,013 724,697 726,567
Total liabilities1,422,201 1,567,915 1,365,914
Net assets352,758 375,899 403,020
EQUITY
Contributed equity360,235 360,235 360,235
Reserves1,017 (14,502)10
Retained earnings(9,470)29,379 41,825
Total equity attributable to shareholders351,782 375,112 402,070
Minority interest976 787 950
Total equity352,758 375,899 403,020
The assets and liabilities connected to the sale of Torpedo7 (refer note: 19) were reclassifed as two separate 'held for sale' amounts in the current financial period.
Comparative amounts for the 2023 financial year remain unchanged.
3

Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
28 January 29 January 30 July
Note
2024 2023 2023
Cash flows from operating activities
$ 000 $ 000 $ 000
Cash received from customers1,700,688 1,814,177 3,409,163
Payments to suppliers and employees(1,530,396)(1,667,651)(3,139,848)
Income tax paid(10,364)(17,248)(11,033)
Interest paid(22,449)(20,448)(44,099)
Net cash flows from operating activities137,479 108,830 214,183
Cash flows from investing activities
Proceeds from sale of property, plant and equipment150 - 30,667
Purchase of property, plant, equipment and computer software(28,731)(64,882)(115,088)
Purchase of minority interest- (691)(691)
Net cash flows from investing activities(28,581)(65,573)(85,112)
Cash flows from financing activities
Proceeds/(repayments) from borrowings(19,100)50,050 10,250
Lease principal repayments(51,594)(50,714)(101,171)
Treasury stock dividends received 111 139 138
Dividends paid to parent shareholders(27,905)(34,907)(34,907)
Dividends paid to minority shareholders(183)(50)(50)
Net cash flows from financing activities(98,671)(35,482)(125,740)
Net cash flow10,227 7,775 3,331
Opening cash position28,330 24,999 24,999
Closing cash position38,557 32,774 28,330
Reconciliation of Operating Cash Flows
Profit/(Loss) after tax(23,450)17,327 29,937
Non cash items
Depreciation and amortisation expense - continuing operations
4
80,054 73,531 151,891
Depreciation and amortisation expense - discontinued operations
18
5,423 5,262 10,805
Right of use asset impairment
12
619 - 226
Share based payment expense551 353 804
Torpedo7 asset impairment
19
59,497 - -
Movement in deferred tax(11,064)(7,965)5,934
Total non cash items135,080 71,181 169,660
Items classified as investing or financing activities
Net loss on disposal of property, plant and equipment583 1,584 2,634
Loss from investment in associate- 319 3,839
Gain on lease terminations
4
(33)(335)(977)
Supplementary dividend tax credit158 223 223
Total investing and financing adjustments708 1,791 5,719
Changes in assets and liabilities
Trade and other receivables
(22,336)(13,171)2,496
Inventories(46,048)(55,443)69,005
Trade and other payables102,098 85,808 (59,802)
Provisions(6,017)3,456 701
Income tax(4,205)(2,119)(3,533)
Assets held for sale(3,886)- -
Liabilities connected to assets held for sale5,535 - -
Total changes in assets and liabilities25,141 18,531 8,867
Net cash flows from operating activities137,479 108,830 214,183
Cash flows represent the combined cash flows of both the Group's continuing and discontinued operations.
4

Consolidated Statement of Changes in Equity
Foreign Employee
Currency Share
Share Treasury Hedge Translation BenefitsRetained Minority Total
(Unaudited)
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 26 weeks ended 28 January 2024
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,282)(767)(27)804 41,825 950 403,020
Profit/(loss) for the half year- - - - - (23,659)209 (23,450)
Movement in foreign currency translation reserve- - - 60 - - - 60
Movement in derivative cash flow hedges- - 550 - - - - 550
Tax related to movement in hedge reserve- - (154)- - - - (154)
Total comprehensive income- - 396 60 - (23,659)209 (22,994)
Share rights charged to the income statement- - - - 551 - - 551
Dividends paid- - - - - (27,747)(183)(27,930)
Treasury stock dividends received- - - - - 111 - 111
Balance at the end of the period365,517 (5,282)(371)33 1,355 (9,470)976 352,758
Foreign Employee
Currency Share
Share Treasury Hedge Translation BenefitsRetained Minority Total
(Unaudited)
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 26 weeks ended 29 January 2023
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,282)12,560 179 - 48,940 (815)421,099
Profit for the half year- - - - - 17,363 (36)17,327
Movement in foreign currency translation reserve- - - (257)- - - (257)
Movement in cash flow and monetised hedges- - (37,968)- - - - (37,968)
Tax related to movement in hedge reserve- - 10,631 - - - - 10,631
Total comprehensive income- - (27,337)(257)- 17,363 (36)(10,267)
Share rights charged to the income statement- - - - 353 - - 353
Minority put options exercised- - - - - (2,379)1,688 (691)
Dividends paid- - - - - (34,684)(50)(34,734)
Treasury stock dividends received- - - - - 139 - 139
Balance at the end of the period365,517 (5,282)(14,777)(78)353 29,379 787 375,899
Foreign Employee
Currency Share
Share Treasury Hedge Translation BenefitsRetained Minority Total
(Audited)
Capital Stock Reserves Reserve Reserve Earnings Interest Equity
For the 52 weeks ended 30 July 2023
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,282)12,560 179 - 48,940 (815)421,099
Profit for the year- - - - - 29,810 127 29,937
Movement in foreign currency translation reserve- - - (206)- - - (206)
Movement in derivative cash flow hedges- - (18,510)- - - - (18,510)
Tax related to movement in hedge reserve- - 5,183 - - - - 5,183
Total comprehensive income- - (13,327)(206)- 29,810 127 16,404
Share rights charged to the income statement- - - - 804 - - 804
Minority put options exercised- - - - - (2,379)1,688 (691)
Dividends paid- - - - - (34,684)(50)(34,734)
Treasury stock dividends received- - - - - 138 - 138
Balance at the end of the period365,517 (5,282)(767)(27)804 41,825 950 403,020
5

Notes to the Interim Financial Statements
1. GENERAL INFORMATION
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
3. MATERIAL TRANSACTIONS AND SUBSEQUENT EVENTS
The interim financial statements of the Group have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand
(GAAP). They comply with New Zealand Equivalent to the International Accounting Standard 34 Interim Financial Reporting(NZIAS 34) and
International Accounting Standard 34 Interim Financial Reporting(IAS 34) and consequently, do not include all the information required for full
financial statements. These Group interim financial statements should be read in conjunction with the annual report for the 52 weeks ended
30 July 2023.
These interim financial statements have been prepared under the historical cost convention except for the revaluation of certain financial
instruments (including derivative instruments). The reporting currency used in the preparation of the interim financial statements is New Zealand
dollars, rounded to the nearest thousands unless otherwise stated.
Accounting standards
The accounting policies that materially affect the measurement of the interim financial statements have been applied on a consistent basis with
those used in the audited financial statements for the 52 weeks ended 30 July 2023. The Group’s accounting policies for discontinued operations
(note 18) and held for sale assets (note 19) which detail the sale of the Group's Torpedo7 business are applicable this period and included as part of
the note disclosures. Certain comparative amounts reported for the previous half year and full year have been restated to reclassify the Torpedo7
business from continuing to discontinued operations and conform with the current period presentation.
Non-GAAP financial information
The Group uses operating profit, earnings before tax and interest, unusual items and adjusted net profit to describe financial performance as it
considers these line items provide a better measure of underlying business performance. These non-GAAP measures are not prepared in
accordance with New Zealand Equivalent to International Financial Reporting Standards (NZ IFRS) and may not be comparable to similarly titled
amounts reported by other companies. The Group’s policy regarding unusual items and adjusted net profit are detailed in note 5.
Critical accounting judgements, estimates and assumptions
The preparation of the interim financial statements requires the Group to make judgements, estimates and assumptions that affect the reported
amounts of assets and liabilities at balance date and the reported amounts of revenues and expenses during the half year. The same material
judgements, estimates and assumptions that are summarised in the audited financial statements for the 52 weeks ended 30 July 2023 were again
applied in the preparation of these interim financial statements. Additional judgements were also required regarding the accounting treatment and
impairment calculations connected with the disposal of the Torpedo7 business (refer note 19).
Approval of interim financial statements
These consolidated interim financial statements were approved for issue by the Board of Directors on 19 March 2024. Unless as otherwise stated,
the interim financial statements have been reviewed by our Auditors, but are not audited.
The Warehouse Group Limited (the Company) and its subsidiaries (together the Group) trade in the New Zealand retail sector. The Company is a
limited liability company incorporated and domiciled in New Zealand. The Group is registered under the Companies Act 1993 and is an FMC
Reporting Entity under Part 7 of the Financial Markets Conduct Act (FMCA) 2013. The address of its registered office is Level 4, 4 Graham Street,
PO Box 2219, Auckland. The Company is listed on the New Zealand Stock Exchange (NZX).
Sale of Torpedo7 (note 19)
The Group announced on 22 February 2024 that it had sold the Torpedo7 business to Tahua Partners Limited. The trading performance for this
business segment is excluded from continuing operations and presented separately as a single, after tax amount for discontinued operations in the
Income Statement (refer note 18). As a consequence of the business sale a non-cash, pre-tax asset impairment of $59.5 million was recognised
(refer note 19).
Tax Building Depreciation (December 2023)
In December 2023, the Government announced it would make a number of changes to the tax legislation as part of its mini budget. These tax
changes included the removal of the ability to depreciate buildings for tax purposes from April 2024. The Government has not yet substantially
enacted this new tax legislation which meant the Group was not required to record the impact of the proposed tax change in the half year result.
If this new tax legislation is enacted as anticipated, the removal of the ability to depreciate buildings for tax purposes will reduce the tax base of the
Group’s buildings to nil, as future tax deductions will no longer be available. For the Group, the application of this taxation change, is expected to
decrease the Group's deferred taxation asset by approximately $8.1 million, and will create a one-off, non-cash accounting adjustment to increase
the taxation expense by the same amount in the second half of this financial year.
Climate change reporting
In December 2022, the External Reporting Board (XRB) of New Zealand released the Aotearoa New Zealand Climate Standards (NZCS) setting the
requirements for the reporting of climate risks. In 2023 the Group participated in, and was instrumental in, setting the New Zealand retail sector
scenarios for the purposes of NZCS. The Group will report under the new NZCS requirements for the first time for the year ending 28 July 2024.
Dividend
The Group's dividend policy is to distribute at least 70% of the Group's full year adjusted net profit, at the discretion of the Board and subject to
trading performance, market conditions and liquidity requirements. The Board declared a fully imputed interim dividend of 5.0 cents per ordinary
share on 19 March 2024 to be paid on 23 April 2024 to all shareholders on the Group's share register at the close of business on 8 April 2024.
6

Notes to the Interim Financial Statements - continued
4. SEGMENT INFORMATION
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
28 January 29 January 30 July 28 January 29 January 30 July
Note
2024 2023 2023 2024 2023 2023
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
The Warehouse965,630 1,013,655 1,892,351 38,795 41,262 71,596
Warehouse Stationery 117,925 124,141 248,629 7,746 8,904 23,004
TheMarket.com2,476 21,869 33,652 (5,288)(16,028)(22,001)
Warehouse1,086,031 1,159,665 2,174,632 41,253 34,138 72,599
Noel Leeming 544,424 556,742 1,061,026 14,290 17,248 27,342
Other Group operations6,030 4,083 8,395 (12,569)(13,989)(16,549)
Inter-segment eliminations(3,739)(3,698)(7,141)
Group1,632,746 1,716,792 3,236,912 42,974 37,397 83,392
Adjustment for NZ IFRS 16 (Leases)19,828 20,097 38,891
Operating profit from continuing operations62,802 57,494 122,283
Unusual items
5
- (6,275)(13,561)
Earnings before interest and tax from continuing operations62,802 51,219 108,722
Operating margin
The Warehouse (%)4.0 4.1 3.8
Warehouse Stationery (%)6.6 7.2 9.3
Noel Leeming (%)2.6 3.1 2.6
Total Retail Group (%)2.6 2.2 2.6
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Pre NZ IFRS 16 Rent64,770 63,577 125,742
Right of use asset amortisation(44,975)(43,815)(87,828)
Gain on lease terminations33 335 977
Impact on operating profit from continuing operations19,828 20,097 38,891
Lease liability interest
13
(18,249)(16,851)(34,374)
Impact on operating profit from continuing operations (excluding unusual items)
5
1,579 3,246 4,517
Lease impairments classified as unusual items- - (226)
Impact on profit before tax from continuing operations1,579 3,246 4,291
Depreciation and amortisation expense
Property, plant and equipment
22,091 19,533 42,259
Computer software12,988 10,183 21,804
Property, plant, equipment and computer software
10
35,079 29,716 64,063
Right of use assets
12
44,975 43,815 87,828
Total depreciation and amortisation expense from continuing operations80,054 73,531 151,891
The current period software amortisation includes an impairment ($1.8 million) for the TheMarket.com online platform.
Operating performance
REVENUEOPERATING PROFIT
Adjustment for NZ IFRS 16 (Leases)
Operating segments
The Group has four retail brands trading in the New Zealand retail sector, including an online marketplace. These brands form the basis of internal
reporting used by senior management and the Board of Directors to monitor and assess performance and assist with strategy decisions. Brand
trading performance is assessed using operating profit, which is a non-GAAP measure that excludes the impacts of NZ IFRS 16 Leases, and is
considered a better measure of underlying brand performance. Assets are not allocated to operating segments and the balance sheet is managed
and internally reported on a consolidated basis to the senior management and the Board of Directors.
Customers can purchase product from the three main retail chains either online or through the Group’s physical retail store network. At period end the
Group’s physical store network consists of 88 The Warehouse stores, 66 Warehouse Stationery stores (including 41 stores trading within The
Warehouse stores), and 67 Noel Leeming stores. The Warehouse predominantly sells general merchandise and apparel, Noel Leeming sells
technology and appliance products and Warehouse Stationery sells stationery products.
The Torpedo7 business was previously included as a separate retail brand, but has been reclassified as a discontinued operation this period. The
Torpedo7 results, cash flows and details of its sale are found in notes 18 and 19. Other Group operations include a property company, a chocolate
factory and the residual cost of unallocated support office functions.
7

Notes to the Interim Financial Statements - continued
5. ADJUSTED NET PROFIT
(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Net profit from continuing operations attributable to shareholders of the parent31,847 23,654 49,935
Add back: Unusual items
Gain on sale of property- - (413)
Restructuring costs- 6,275 10,502
Associate impairment- - 3,472
Unusual items before taxation from continuing operations- 6,275 13,561
Adjustment for NZ IFRS 16 (Leases)
4
(1,579)(3,246)(4,517)
Income tax relating to above items442 (848)(1,560)
Adjusted net profit from continuing operations attributable to shareholders of the parent30,710 25,835 57,419
6. INVENTORIES
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Finished goods439,540 529,803 448,895
Inventory provisions(13,359)(21,442)(20,973)
Retail stock426,181 508,361 427,922
Goods in transit from overseas66,499 109,395 65,386
Inventory492,680 617,756 493,308
7. TRADE AND OTHER RECEIVABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Trade receivables39,774 36,562 31,257
Prepayments49,823 43,322 35,755
Rebate accruals and other debtors26,436 32,804 30,009
116,033 112,688 97,021
Less non current prepayments(27,745)(14,591)(20,747)
Total trade and other receivables88,288 98,097 76,274
Inventories
Trade and other receivables
Adjusted net profit reconciliation
Certain transactions can make the comparison of profits between years difficult. The Group uses adjusted net profit as a key indicator of
performance and considers it a better measure of underlying business performance. Adjusted net profit makes allowance for the after tax effect of
unusual items which are not directly connected with the Group’s normal trading activities. The Group defines unusual items as any gains or losses
from property disposals, goodwill and brand impairment, costs relating to business acquisitions or disposals, ineffective hedge derivatives and costs
connected with restructuring the Group. Following the adoption of NZ IFRS 16 the non-cash impact relating to the lease accounting standard are
also excluded from adjusted net profit.
8

Notes to the Interim Financial Statements - continued
8. TRADE AND OTHER PAYABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Local trade creditors and accruals318,134 306,233 247,168
Foreign currency trade creditors101,932 122,529 72,668
Goods in transit creditors26,975 33,311 23,941
Goods and services tax18,715 42,721 16,132
Reward schemes, lay-bys, Christmas club deposits and gift vouchers23,305 24,575 27,413
Payroll accruals22,353 22,595 20,017
Total trade and other payables511,414 551,964 407,339
Liabilities connected to assets held for sale
19
5,535 - -
Total trade and other payables516,949 551,964 407,339
9. PROVISIONS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Current liabilities42,706 53,044 49,292
Non current liabilities22,974 21,408 22,405
Total provisions65,680 74,452 71,697
Provisions consist of:
Employee entitlements
53,108 61,373 59,314
Make good provision8,032 8,124 8,072
Sales returns provision4,540 4,955 4,311
Total provisions65,680 74,452 71,697
10. PROPERTY, PLANT, EQUIPMENT AND COMPUTER SOFTWARE
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Property, plant and equipment205,802 240,942 222,289
Computer software
11
92,965 93,152 95,283
Carrying amount298,767 334,094 317,572
Movement in property, plant, equipment and computer software
Carrying amount at the beginning of the period
317,572 303,224 303,224
Capital expenditure27,813 63,467 113,203
Depreciation and amortisation - continuing operations
4
(35,079)(29,716)(64,063)
Depreciation and amortisation - discontinued operations(1,311)(1,267)(2,629)
Classified as held for sale
19
(9,497)- -
Disposals(731)(1,614)(32,163)
Carrying amount at the end of the period298,767 334,094 317,572
11. INTANGIBLE ASSETS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Computer software
10
92,965 93,152 95,283
Brands15,500 15,500 15,500
Goodwill57,456 57,456 57,456
Net book value165,921 166,108 168,239
Trade and other payables
Provisions
Intangible assets
Property, plant, equipment and computer software
The Group performs a detailed impairment assessment of intangible assets prior to the end of each financial year and at each interim reporting date
considers if there are any indicators of impairment which could have a bearing on the impairment assessments. The Group’s review did not identify
any significant indicators of impairment in respect of the cash generating units connected with the Group’s material intangible assets.
9

Notes to the Interim Financial Statements - continued
12. RIGHT OF USE ASSETS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Movement in right of use assets
Carrying amount at the beginning of the period661,025 673,278 673,278
Foreign exchange movement21 (86)(87)
Additions
13
27,045 29,937 99,416
Depreciation - continuing operations
4
(44,975)(43,815)(87,828)
Depreciation - discontinued operations(4,112)(3,995)(8,176)
Reassessment of lease terms
13
2,267 - (11,945)
Sale and lease back adjustment- - (494)
Lease impairments
18
(619)- (226)
Lease surrenders and terminations(1,616)(700)(2,913)
Carrying amount at the end of the period639,036 654,619 661,025
Less classified as held for sale
19
(21,827)- -
Right of use assets617,209 654,619 661,025
13. LEASE LIABILITIES
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
Note
2024 2023 2023
$ 000 $ 000 $ 000
Movement in lease liabilities
Carrying amount at the beginning of the period803,158 820,840 820,840
Foreign exchange movement23 (86)(91)
Additions
12
27,045 29,937 99,416
Interest for the period - continuing operations
4
18,249 16,851 34,374
Interest for the period - discontinued operations726 900 1,825
Reassessment of lease terms
12
2,267 - (11,945)
Lease repayments(70,569)(68,465)(137,370)
Lease surrenders and terminations(1,649)(1,035)(3,891)
Balance at the end of the period779,250 798,942 803,158
Less liabilities connected to assets held for sale
19
(24,230)- -
Lease liabilities755,020 798,942 803,158
Lease liability maturity analysis
Within one year89,981 96,306 98,996
One to two years86,466 91,722 93,213
Two to five years234,929 231,751 239,963
Beyond five years343,644 379,163 370,986
Total lease liabilities755,020 798,942 803,158
Current liabilities89,981 96,306 98,996
Non current liabilities665,039 702,636 704,162
Total lease liabilities755,020 798,942 803,158
14. BORROWINGS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Cash and cash equivalents38,557 32,774 28,330
Borrowings(57,300)(116,200)(76,400)
Net debt(18,743)(83,426)(48,070)
Committed bank credit facilities at balance date are:
Committed bank debt facilities490,000 465,000 470,000
Liquidity buffer471,257 381,574 421,930
Net cash
Lease liabilities
Right of use assets
The Group complied with the debt ratios and covenants stipulated in the Group’s negative pledge arrangement with its banks throughout the half year.
Details regarding these covenants and the Group’s liquidity policy, can be found in the 2023 Annual Report.
10

Notes to the Interim Financial Statements - continued
15. DERIVATIVE FINANCIAL INSTRUMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Foreign exchange contracts
Current assets4,401 3,962 5,208
Current liabilities(3,022)(25,704)(7,320)
Non current liabilities- (653)-
Total derivative financial instruments1,379 (22,395)(2,112)
Classified as:
Cash flow hedges(516)(20,524)(1,066)
Fair value hedges1,895 (1,871)(1,046)
Total derivative financial instruments1,379 (22,395)(2,112)
Notional amount (NZ$000) 0 to 12 months383,829 491,172 437,383
Notional amount (NZ$000) 12 to 18 months- 26,931 -
Average contract rate ($)0.6113 0.6200 0.6125
Spot rate used to determine fair value ($)0.6095 0.6491 0.6156
Forecast next twelve month USD hedge level (percentage)67.7 76.5 74.7
16. COMMITMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
Capital commitments
$ 000 $ 000 $ 000
Within one year4,141 29,859 8,387
17. RELATED PARTIES
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
Opening share rights2,203,165 - -
Share rights granted during the period- 2,370,711 2,370,711
Lapsed- - (167,546)
Share rights at balance date2,203,165 2,370,711 2,203,165
Share rights comprise:
Tranche 11,600,000 1,600,000 1,600,000
Tranche 2603,165 770,711 603,165
Share rights at balance date2,203,165 2,370,711 2,203,165
Tranche 1 Tranche 2
Date grantedOctober 2022November 2022
Vesting dateOctober 2026October 2025
Weighted average cost of equity (%)8.9 8.5
Average share price at grant date ($)3.13 3.01
Estimated fair value at grant date ($)2.96 2.93
Commitments
Derivative financial instruments
US Dollar forward contracts
Executive share rights
Capital expenditure contracted for at balance date but not recognised as liabilities is
set out below:
Except for directors' fees, key executive remuneration and dividends paid by the Group to its directors, there have been no other related party
transactions during the period. Last financial year the Group granted share rights as a retention incentive to the CEO and five members of the
Group's senior leadership in October 2022 and November 2022 respectively. For each share right the participant is eligible to be issued or
transferred, for nil consideration 1 share on the vesting date (together with dividend equivalents), providing certain conditions are met. The
participants will be delivered the shares net of tax, with the number of pre-tax shares to be delivered reduced by the number of shares equal to the
participant's PAYE obligation. At balance date the CEO and four members of the Group's senior leadership hold share rights.
Fair value
The Group’s derivatives are not traded in an active market which means quoted prices are not available to determine the fair value. To
determine the fair value the Group uses valuation techniques which rely on observable market data. The fair value of forward exchange
contracts are determined using the forward exchange market rates at the balance date. For accounting purposes (NZ IFRS 13) these
valuations are deemed to be Level 2 fair value measurements as they are not derived from a quoted price in an active market but rather, a
valuation technique that relies on other observable market data.
The Group continues to manage its foreign exchange risks in accordance with the policies and parameters detailed in the 2023 Annual Report. The
following table lists the key inputs used to determine the fair value of the Group's foreign exchange contracts and hedge levels at balance date.
11

Notes to the Interim Financial Statements - continued
18. DISCONTINUED OPERATIONS
(Unaudited)(Unaudited)(Audited)
As at As at As at
28 January 29 January 30 July
2024 2023 2023
$ 000 $ 000 $ 000
Retail sales73,041 96,395 162,200
Cost of retail goods sold(48,396)(66,192)(113,707)
Gross profit24,645 30,203 48,493
Other income298 48 257
Employee expense(18,110)(20,306)(38,582)
Depreciation and amortisation expense(5,423)(5,262)(10,805)
Other operating expense(10,025)(10,354)(19,596)
Operating profit(8,615)(5,671)(20,233)
Unusual items - Impairment of assets and 2023 restructuring costs(60,116)- (374)
Loss before interest and tax(68,731)(5,671)(20,607)
Interest expense(4,456)(3,066)(7,329)
Loss before tax(73,187)(8,737)(27,936)
Income tax expense17,681 2,446 7,811
Loss from discontinued operations(55,506)(6,291)(20,125)
Cash flows from discontinued operations
Net cash flows from operating activities6,265 (11,509)(20,795)
Net cash flows from investing activities(161)(2,494)(4,252)
Net cash flows from financing activities(5,118)13,852 24,981
19. HELD FOR SALE
(Unaudited)
As at
28 January
Note
2024
$ 000
Trade and other receivables

3,324
Inventories50,562
Working capital53,886
Property, plant, equipment and computer software
10
9,497
Right of use assets
12
21,827
Book value of assets held for sale before impairment85,210
Impairment
18
(59,497)
Assets held for sale25,713
Liabilities
Gift cards and online fulfilment obligations
8
5,535
Lease liabilities
12
24,230
Liabilities connected to assets held for sale29,765
Torpedo7 results and cash flows
Torpedo7 assets classified as held for sale
A discontinued operation is a component of the Group that represents a separate major line of business that is part of a disposal plan. The
results of discontinued operations are presented separately as a single amount in the Income Statement.
At the date of the approval of the 2023 financial statements, management and the Board were committed to a turnaround plan for Torpedo7. By
November 2023 the performance of the business had not improved.Consequently, management and the Board then reviewed a number of
alternatives, including indicative exit options and a revised plan to continue trading the business. While these options were being considered, the
Group received an unsolicited indicative proposal from Tahua Partners Limited to purchase the Torpedo 7 business assets.
The Group weighed this option against other alternatives, before commencing a period of negotiations. These negotiations concluded on
22 February 2024 when the Group signed an agreement to sell the Torpedo7 business assets. The Torpedo7 business, previously reported as a
separate retail brand (as part of note 4) were accordingly reclassified as a discontinued operation. The Torpedo7 results and cash flows are as
follows.
The Group completed the first part of its plan to dispose of the Torpedo7 business when it executed a business asset sale agreement, four weeks
after balance date. As part of the agreement, Tahua Partners purchases certain Torpedo7 business assets for $1 at the end of March 2024,
which includes plant and equipment, inventory, inventory prepayments, the Torpedo7 brand and they will also assume the obligations for most
store leases, honouring gift cards, customer orders not yet delivered and customer returns. The assets sold and the lease and other liabilities
assumed by the purchaser are detailed below and classified as held for sale at balance date:
Non current assets or a group of assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair
value less costs to sell, except for tax assets and financial assets which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write down of the asset to fair value less costs to sell. A gain is recognised for any
subsequent increase in fair value less cost to sell of an asset, but not more than any cumulative impairment loss previously recognised. Non
current assets are not depreciated or amortised while they are classified as held for sale.
The 2024 asset impairment relates to assets held for sale (refer note 19) and the impairment of a right of use asset for a store lease ($0.6 million)
excluded from the sale agreement.
12

Notes to the Interim Financial Statements - continued
19. HELD FOR SALE - continued
20. CONTINGENT LIABILITIES
The Group has no material contingent liabilities other than those arising in the normal course of business, being primarily letters of credit issued to
secure future purchasing requirements and contingent liabilities associated with the sale of the Torpedo7 business assets (refer notes 18 and 19).
The asset sale exposes the Group to a number of contingent liabilities connected with warranties contained in the sale and purchase agreement.
The Group was required to make warranties, which are typical for a transaction of this nature. These warranty claims are capped at $1.0 million
and expire 18 months after completion.
Material judgements and estimates
The estimates and judgements applied with respect to the recognition of the impairment of the Torpedo7 assets involves a high level of
complexity and carries a significant risk of adjustment in subsequent periods. The trading performance during the two-month period preceding
the sale to Tahua Partners and any adjustments made to the disposal plan may result in the recoverable value of the assets sold being different
from those estimated. Any changes to carrying amounts in subsequent periods due to a revision to estimates or as a result of the final realisation
of the Torpedo7 assets upon the disposal of the business will be recognised in the Income Statement as part of discontinued operations. The key
estimates and judgements are set out below.
Asset impairment
The held for sale asset impairment, is based on an assessment of the recoverable amount expected to be realised through the asset sale. The
consideration for the sale is subject to adjustment, if the working capital amount is different from a target position specified in the sale agreement
at the end of the March 2024 completion date. If the book value of working capital at completion exceeds the target, the purchaser is required to
compensate the Group for the difference and conversely the Group would compensate the purchaser if the working capital amount is less than
the target.
Residual costs, assets and liabilities
The second part of the disposal plan involves the collection of trade receivables excluded from the asset sale and settlement of trade creditors,
employee entitlements, tax and other obligations incurred prior to the transfer of ownership. The Group has also agreed that it will provide certain
transitional services to the purchaser for a period of up to six months following completion.
The majority of the permanent Torpedo7 team were offered new employment contracts by Tahua Partners, however there are some team
members who did not retain a job. The Group did not recognise a liability for the employee redundancy costs until the obligation was confirmed,
which did not happen until four weeks after balance date when the employees were informed of the sale and the impact it may have on their
employment. Similarly the Group was unable to recognise a gain from assigning its lease obligations to Tahua Partners, which can-not be
recognised until the lease assignments are completed. It is expected that the gains that arise from assigning the lease obligations will exceed the
redundancy and other transition costs that will be incurred during the second half of this financial year.
13

---

Independentauditor’sreviewreport
TotheshareholdersofTheWarehouseGroupLimited
Reportontheinterimfinancialstatements
Ourconclusion
WehavereviewedtheinterimfinancialstatementsofTheWarehouseGroupLimited(theCompany)
anditssubsidiaries(theGroup),whichcomprisetheconsolidatedbalancesheetasat28January
2024,andtheconsolidatedincomestatement,consolidatedstatementofcomprehensiveincome,the
consolidatedstatementofchangesinequityandtheconsolidatedstatementofcashflowsforthe26
weeksendedonthatdate,andnotes,comprisingmaterialaccountingpolicyinformationandother
explanatoryinformation.
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethatthe
accompanyinginterimfinancialstatementsoftheGroupdonotpresentfairly,inallmaterialrespects,
thefinancialpositionoftheGroupasat28January2024,anditsfinancialperformanceandcashflows
forthe26weekperiodthenended,inaccordancewithInternationalAccountingStandard34Interim
FinancialReporting(IAS34)andNewZealandEquivalenttoInternationalAccountingStandard34
InterimFinancialReporting(NZIAS34).
Basisforconclusion
WeconductedourreviewinaccordancewiththeNewZealandStandardonReviewEngagements
2410(Revised)ReviewofFinancialStatementsPerformedbytheIndependentAuditoroftheEntity
(NZSRE2410(Revised)).OurresponsibilitiesarefurtherdescribedintheAuditor’sresponsibilitiesfor
thereviewoftheinterimfinancialstatementssectionofourreport.
WeareindependentoftheGroupinaccordancewiththerelevantethicalrequirementsinNew
Zealandrelatingtotheauditoftheannualfinancialstatements,andwehavefulfilledourotherethical
responsibilitiesinaccordancewiththeseethicalrequirements.Inadditiontoourroleasauditor,our
firmcarriesoutotherservicesfortheGroupintheareasofagreeduponproceduresattheAnnual
Shareholders’MeetingandovercalculationsoftheNegativePledgeAgreement.Inaddition,certain
partnersandemployeesofourfirmmaydealwiththeGrouponnormaltermswithintheordinary
courseoftradingactivitiesoftheGroup.Theprovisionoftheseotherservicesandrelationshipshave
notimpairedourindependenceasauditoroftheGroup.
ResponsibilitiesofDirectorsfortheinterimfinancialstatements
TheDirectorsoftheCompanyareresponsibleonbehalfoftheCompanyforthepreparationandfair
presentationoftheseinterimfinancialstatementsinaccordancewithIAS34andNZIAS34andfor
suchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationandfair
presentationoftheinterimfinancialstatementsthatarefreefrommaterialmisstatement,whetherdue
tofraudorerror.
Auditor’sresponsibilitiesforthereviewoftheinterimfinancialstatements
Ourresponsibilityistoexpressaconclusionontheinterimfinancialstatementsbasedonourreview.
NZSRE2410(Revised)requiresustoconcludewhetheranythinghascometoourattentionthat
causesustobelievethattheinterimfinancialstatements,takenasawhole,arenotpreparedinall
materialrespects,inaccordancewithIAS34andNZIAS34.
PricewaterhouseCoopers,PwCTower,15CustomsStreetWest,PrivateBag92162,Auckland1142NewZealand
T:+6493558000,www.pwc.co.nz

AreviewofinterimfinancialstatementsinaccordancewithNZSRE2410(Revised)isalimited
assuranceengagement.Weperformprocedures,primarilyconsistingofmakingenquiries,primarilyof
personsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreview
procedures.Theproceduresperformedinareviewaresubstantiallylessthanthoseperformedinan
auditconductedinaccordancewithInternationalStandardsonAuditingandInternationalStandards
onAuditing(NewZealand)andconsequentlydoesnotenableustoobtainassurancethatwemight
identifyinanaudit.Accordingly,wedonotexpressanauditopinionontheseinterimfinancial
statements.
Whowereportto
ThisreportismadesolelytotheCompany’sshareholders,asabody.Ourreviewworkhasbeen
undertakensothatwemightstatethosematterswhichwearerequiredtostatetotheminourreview
reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassume
responsibilitytoanyoneotherthantheshareholders,asabody,forourreviewprocedures,forthis
report,orfortheconclusionwehaveformed.
Theengagementpartneronthereviewresultinginthisindependentauditor’sreviewreportisPhilippa
(Pip)Cameron.
Forandonbehalfof:
CharteredAccountantsAuckland
19March2024
PwC2

---

Name of issuer THE WAREHOUSE GROUP LIMITED
Financial product description Ordinary Shares (346,843,120)
NZX ticker code WHS
ISIN NZWHSE0001S6
Type of distribution Full Year Quarterly
(please mark with an X in the relevant box/es) Half Year
X
Special
DRP Applies Not Applicable
Record date 08 April 2024
Ex-Date (one business day before the record date) 05 April 2024
Payment date 23 April 2024
Total monies associated with the distribution $17,342,156
Source of distribution Operating cash flows
Currency New Zealand dollars
Gross distribution $0.06944444
Gross taxable amount $0.06944444
Total cash distribution $0.05000000
Excluded amount $0.00000000
Supplementary distribution amount $0.00882353
Is this distribution imputed? Fully imputed
28%
$0.01944444
$0.00347222
Celia Mearns (Acting Group Chief Financial Officer)
Celia Mearns (Acting Group Chief Financial Officer)
021 452 860
Celia.Mearns@thewarehouse.co.nz
Date of release through MAP 20 March 2023
Contact email address
Section 1: Issuer Information
Section 2: Distribution amounts per financial product
Section 3: Imputation credits and resident withholding tax
Resident withholding tax amount per financial product
If fully or partially imputed, please state imputation
rate as % applied
Section 4: Distribution re-investment plan (if applicable)
Not Applicable
The Warehouse Group Limited
Corporate Action Notice (for a Distribution)
Name of person authorised to
make this announcement
Contact phone number
Imputation tax credits per financial product
Section 5: Authority for this announcement
Contact person for this announcement

---

Quarterly Sales
Reporting Period 26 weeks to 28 January 2024
Previous Reporting Period (2023) 26 weeks to 29 January 2023
Quarterly Retail Sales information:
SalesSales
(31 July 2023 to 29 October 2023)
20242023
($ Million)($ Million)
The Warehouse 394.2 414.6 - 4.9 %
Warehouse Stationery54.6 56.9 - 4.0 %
Noel Leeming234.1 246.6 - 5.1 %
Total Group
1
685.4 727.3 - 5.8 %
SalesSales
(30 October 2023 to 28 January 2024)
20242023
($ Million)($ Million)
The Warehouse 571.4 599.1 - 4.6 %
Warehouse Stationery63.3 67.2 - 5.8 %
Noel Leeming310.3 310.1 + 0.1 %
Total Group
1
947.3 989.5 - 4.3 %
SalesSales
(31 July 2023 to 28 January 2024)
20242023
($ Million)($ Million)
The Warehouse 965.6 1,013.7 - 4.7 %
Warehouse Stationery117.9 124.1 - 5.0 %
Noel Leeming544.4 556.7 - 2.2 %
Total Group
1
1,632.7 1,716.8 - 4.9 %
Store Numbers
202420232024202320242023
Start Quarter 2888867 68 66 68
End Quarter 2888867 68 66 67
202420232024202320242023
Start Quarter 2469,818 473,359 83,815 83,064 49,031 52,452
End Quarter 2469,818 473,359 83,815 83,064 49,031 51,285
- - - -
- - - -
- - - -
Note:
Store footprint (Square Metres)
Store changes during the quarter
The Warehouse Group Limited
Supplementary Information
The Warehouse
Noel Leeming
Warehouse StationeryNoel Leeming
1) Total Group sales includes TheMarket segment, eliminations and other Group operations in addition to the 3 main retail operations detailed above.
Store
closure
Extension/
reduction
New
store
Replacement
store
The Warehouse
Warehouse Stationery
Year to date sales
Noel LeemingWarehouse StationeryThe Warehouse
Change in
sales
vs 2023
Second quarter sales
Change in
sales
vs 2023
Change in
sales
vs 2023
First quarter sales