Warehouse : FY22 Interim Result presentation Final Results

The half year in review was a difficult trading period for the company.

During the six months ending January 2022, Auckland was in Level 3 and 4 lockdown for a total of 84 days meaning our stores were closed during this time, with the rest of New Zealand moving in and out of Level 3 and 4.

As a result of these lockdown measures, our Auckland stores were closed for 46% of our normal trading days, and across the rest of New Zealand our stores were closed for 23% of our normal trading days during the FY22 half year.

There has been disruption to our supply chain and increased ocean freight costs which have had some impact on sales and gross profit margin. There has also been a cost impost in making sure our team was safe in the context of the pandemic, providing greater remuneration equity and in increasing our marketing investment in TheMarket.com.

Despite this, our sales and margins have held up relatively well.

However, each of our brands experienced a decline in operating margin percentage compared to the FY21 half year, and all except Torpedo7 had lower revenues than the previous corresponding period.

The charts in the presentation show that taking out the aberration of the COVID-19 impacted period, our trajectory versus the FY20 half year has been positive.

The investment we have made in moving to an Agile operating model combined with the exceptional leadership of our Group CEO and Executive Leadership Squad and the dedication and commitment of our team members means we have been able to again successfully navigate the challenges we have encountered.

4

Our People

Across our stores, distribution centres and support centres, our team members have gone above and beyond to ensure we meet our customers' needs and wants.

Agile way of working

This means we are able to pivot and respond to changes in our operating environment and customer demands, and to move our people around to where they are needed most.

Our Ecosystem

We are growing our customer centric ecosystem to provide more frictionless shopping experiences and create greater customer value. Our mix of store footprint and market leading digital assets enables us to serve customers in this changing market.

Our supply chain

The Group's robust shipping

and stock management controls have managed inventory levels in a period where there has been supply chain disruption and higher freight costs.