Warehouse : FY22 Annual Result Presentation

THE WAREHOUSE GROUP

FY22 ANNUAL

RESULTS

28 SEPTEMBER 2022

CONTENTS

3 Chair's Update, Joan Withers

9 Group Update, Nick Grayston

17 Group Financials, Jonathan Oram

29 FY23 Outlook, Joan Withers

32 Appendix A: Divisional Results

37 Appendix B: Additional Information

CHAIR'S UPDATE

JOAN WITHERS

3

THROUGH ANOTHER DISRUPTED YEAR, WE HAVE DELIVERED A STRONG RESULT WHILE INVESTING IN THE FUTURE

We have never been more confident of our innovation strategy - to provide a personalised, integrated and friction-free shopping experience.

The resilience, focus and agility of our team have been hallmark themes for the Group over the

last two years and I'd like to recognise and commend all our team members for their commitment to our customers and one another through this period.

There have been COVID-19 store closures and restrictions, disruption to our supply chain and increased ocean freight costs which have had an impact on sales and gross profit margin. There has also been a cost in making sure our team and customers are kept safe in the context of the pandemic, combined with additional costs of providing greater remuneration equity and in increasing our marketing investment in grocery and TheMarket.com.

As a result of COVID-19 impacts, each of our brands have experienced a decline in sales and gross profit margin compared to FY21, with the exception of Torpedo7 which has continued its pleasing sales growth.

We are investing in our strategy to build a world class retail ecosystem in the roll out of our groupwide membership programme, in systems and infrastructure, and in the continuous empowerment and development of our people.

We are excited to share our new vision - to make sustainable living easy and affordable for everyone.

4

FY22 ANNUAL RESULTS HIGHLIGHTS

FY20

FY21

3.8% 3.5%

Group Sales ($m)

		$3,414.6
			$3,294.3
	$3,172.8
$3,071.4
FY19	FY20	FY21	FY22

Online sales(3) $503.3m

Up 39.8% on FY21, making up 15.3% of total Group Sales, up from 10.5% in FY21.

Click & Collect(4) sales $222.8m Up 54.9% on FY21 and making up 49.0% of all online sales

FY20

FY21

12.5% 6.2%

Gross Profit ($m)

		$1,241.4	$1,164.4
$1,028.6	$1,034.9
FY19	FY20	FY21	FY22

Gross Profit margin 35.3%

Down from 36.4% in FY21 but up from 34.7% in FY22 H1, and up from 32.6% in FY20.

FY20

FY21

118.2% 44.8%

Comparable NPAT(1)

($m)

		$175.5
			$96.9
$74.1
	$32.1
FY19	FY20	FY21	FY22

Comparable NPAT $96.9m

NPAT, excluding unusual items and before cloud computing adjustments.

FY22 $96.9m - down 44.8% on FY21, and our second best result in the last 15 years.

FY21

18.3%

Reported NPAT(2) ($m)

$109.3
	$89.3
FY21	FY22

Reported NPAT $89.3m Down 18.3% against the reported result of $109.3m NPAT in FY21.

1. Comparable Adjusted Net Profit After Tax (NPAT) is Adjusted Net Profit before the new adjustment for Cloud Computing Arrangements (Software as a Service, "SaaS") which included a restatement in FY21 of $8.3m and impacted FY22 by $11.4m, after tax. Refer to Slide 19 and 38 for analysis of these adjustments to reported EBIT and NPAT.
2. Reported Net Profit After Tax (NPAT) is only compared against FY21, as FY20 and FY19 has not been restated for SaaS adjustment, so is not comparable against restated FY21 and FY22.

3.	Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, sales through 1-day.co.nz and revenue from TheMarket.com; but excludes TheMarket.com Gross Merchandise Value (GMV).	5
4.	Includes Click & Collect sales through The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 only, excludes TheMarket.com sales.