Slides
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2026 Annual Results 52 WEEKS ENDING 2 AUGUST 2026 1
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2 Contents 1. Chair Update - John Journee 2. CEO Update - Mark Stirton 3. Financial Performance - Stefan Knight 4. The Year Ahead - Mark Stirton 5. Thank You - John Journee 6. Appendix - Additional Information 2
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3 Chair Update John Journee Chair
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The Board’s perspective ● FY26 was the first full year under the brand-led operating model and demonstrated that the reset could deliver in a difficult consumer environment. Operating profit recovered to $22.6m from $1.3m, driven by actions within the business rather than an improvement in market conditions ● Gross margin increased while the cost of doing business reduced, rebuilding operating leverage. Strong cash generation enable d the Group to reduce net debt by $79.1m while increasing investment in its store network ● Noel Leeming and Warehouse Stationery delivered stronger returns. The Warehouse also improved, but remains below an acceptable level of profitability, and its recovery is the Group’s most important priority ● No final dividend has been declared for FY26. The Board’s immediate priority is to rebuild sustainable earnings while retaini ng financial flexibility. The Board recognises the importance of dividends to shareholders and remains committed to returning to paying dividends in the future 4 Progress against the reset plan CHAIR UPDATE $3,027.6m 32.6% 31.8% $22.6m $79.4m $17.0m (1.9%) on a 53-week FY25 (0.2%) on a comparable 52 week1 +0.4% same store sales2 +40 bps on FY256 -40 bps on FY256 vs $1.3m in FY25 vs ($45.2m) in FY25 from $96.1m in FY25 GROUP SALES GROSS MARGIN CODB3 OPERATING PROFIT4 FREE CASH FLOW5 NET DEBT 1. Comparable 52 week removes the 53rd week of FY25 2. Same store sales removes the 53rd week of FY25, excludes online, NLG Commercial, and the impact of opening and closing of stores during the reported and comparable year 3. Cost of Doing Business (CODB) excludes the impact of NZ IFRS 16, unusual items, and is a non-GAAP measure 4. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non-GAAP measure. For a reconciliation between Operating Profit and Reported EBIT, refer to Slide 31 of this presentation and Note 2.0 of the financial statements 5. Free cash flow is calculated as Operating cash flow less capital expenditure and lease principal payments 6. Basis point movements are based on percentages rounded to the nearest 10bps and are so throughout the presentation
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5 CEO Update Mark Stirton Group CEO
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Consumer confidence improved through the first half of FY26 before falling due to international conflict and recovered towards the end of the financial year. Despite the weaker environment, Group earnings improved 6 The market we traded through MACROECONOMIC CONTEXT CONSUMER CONFIDENCE THROUGH FY26 · ANZ -ROY MORGAN, MONTHLY What it meant for our customers ● Higher prices put further pressure on household budgets and discretionary spending ● Real incomes declined, unemployment increased, and the first OCR increase in three years added further pressure late in the year ● Customers shopped less often and focused more on value ● Customers bought more items, but at slightly lower average prices ● Lower foot traffic was partly offset by larger baskets and broadly stable conversion 5.6% 4.1% Highest since September 2015 Two-year high, June qtr UNEMPLOYMENT1 INFLATION1 +1.7% Growth remains subdued ANNUAL GDP GROWTH1 GROUP METRICS 2 FY26 V FY25 +1.8% UNITS -1.4% ASP -0.2% FOOT TRAFFIC +0.5% BASKET SIZE 1. Source: https://www.stats.govt.nz (unemployment; June 2026 update, inflation; annual as at June quarter, GDP growth; annual as at June quarter) 2. Group metrics shown have all been calculated on a 52 -week same store sales basis, which removes the 53rd week of FY25, excludes online, NLG Commercial, and the impact of opening and closing of stores during the reported and comparable year
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Margin and cost discipline lifted earnings, while inventory management improved cash conversion 7 FY26 began to restore operating leverage and strengthened the balance sheet GROUP PERFORMANCE 1. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure. For a reconciliation between Operating Profit and Reported EBIT, refer to Slide 31 of this presentation and Note 2.0 of the financial statements. 2. Cost of Doing Business (CODB) excludes the impact of NZ IFRS 16, unusual items, and is a non -GAAP measure 3. Free cash flow is calculated as Operating cash flow less capital expenditure and lease principal payments 4. Basis point movements are based on percentages rounded to the nearest 10bps and are so throughout the presentation PROFIT RECOVERY OPERATING LEVERAGE BALANCE SHEET $22.6m 32.6% 31.8% GROSS MARGIN CODB / SALES OPERATING PROFIT +$21.3m year-on-year improvement Profit improved on broadly flat comparable sales +40 bps4 Margin and cost as % of sales improved together FIRST TIME SINCE FY21 -40 bps4 The two levers are rebuilding operating leverage $79.4m $17.0m FREE CASH FLOW NET DEBT Net debt reduced by $79.1m Cash conversion strengthened financial flexibility and supported investment in-store Lower inventory supported the improvement The financial platform is now more resilient, yet profitability still sits well below our ambitions
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8 How we went against what we said we would do1 GROUP PERFORMANCE 1. As set out in the FY25 Annual Results investor presentation — Looking ahead. 2. Cost of Doing Business (CODB) excludes the impact of NZ IFRS 16, unusual items, and is a non -GAAP measure METOverhead reductions PARTIALLY METGross margin recovery NOT METThe Warehouse margin recovery METWorking capital unlocks METDisciplined capital investment METRetail-led strategy $29.8m CODB2 reduction; support office costs down 8.8% Group margin increased 40bps, led by the second half. Two out of three brands showed full year growth Exited Q4 ahead, but full-year margin remained below FY25 with deeper clearance of aged inventory $22.9m working-capital inflow; inventory down $37.9m $21.1m in capital expenditure, reweighted toward stores and supply chain Retail-led strategy and execution priorities are set and in action
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9 Rebuilding retail fundamentals RETAIL FUNDAMENTALS 1. Same store sales removes the 53rd week of FY25, excludes online, NLG Commercial, and the impact of opening and closing of sto res during the reported and comparable year In FY26 we strengthened how we choose product, move it through the network and convert customer demand, with early evidence visible in lower inventory, better gross margin and store execution. However, we recognise there is further work to be done. PLAN & BUY MOVE SELL Better sell-through, margin discipline and inventory productivity in key departments Getting product to customers at lower cost Stores, brand and conversion CAPABILITIES BUILT Grocery simplified as a value-led top-up offer supporting broader shopping missions Buying and planning reset for all three brands, with stricter stock investment criteria Ranges, price points and sourcing strengthened in priority categories while ensuring we maintain value on key items CAPABILITIES BUILT Dedicated supply chain leadership and a new freight partner with improved capabilities Independent review of integrated supply chain highlighting opportunities, several changes now underway Streamlined online distribution to improve service to customers, partnered with DoorDash and reduced cost to serve online CAPABILITIES BUILT This Is Warehouse Country refreshed the brand platform Store investment across all three brands and visual merchandising uplift New formats developed to broaden customer appeal FUTURE UNLOCKS AN EARLY EVIDENCE POINT −$37.9m GROUP INVENTORY Lower cost to serve, faster flow, improved availability and a scalable network FUTURE UNLOCKS AN EARLY EVIDENCE POINT 4.7x GROUP STOCK TURN (FY25: 4.6x) Improving foot-traffic, higher conversion, stronger baskets and better store economics FUTURE UNLOCKS AN EARLY EVIDENCE POINT +0.4% GROUP SAME -STORE SALES1 What we sell and what it costs
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10 Focus is moving from flat sales to sustainable revenue growth REVENUE GROWTH FY26 comparable sales were broadly flat. Our focus is to turn stronger retail fundamentals into sustainable revenue growth and gain back share. BRAND-LED GROWTH Clear routes to growth for each brand THE WAREHOUSE WAREHOUSE STATIONERY NOEL LEEMING Leverage brand platform and reappraisal to drive foot-traffic Strengthen product relevance, ranges and value Invest in stores and build local relevance based on customer segmentation Grow business & education Expand Print & Create, personalisation and services Reach more customers through new formats, new stores and improved online channels Win share in priority categories and younger customer groups Differentiate through expert service and solutions Grow national store network, roll- out interactive store concepts and accelerate online Focus on growth categories, including Health & Beauty
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11 People, communities and environment ESG FY26 progress across our team, communities and environmental impact $1.9m contributed to New Zealand charities and communities Award Winner The Good Drop won the Spark Retail NZ 2026 Awards KNAPP Sustainability Leadership Award 90% of electricity matched with electricity produced by Lodestone Energy's solar farms (FY25: 63%) 74% Scope 1 and 2 market-based emissions change compared to FY23 base year (FY25: 45%) 28.3 Per million hours worked (FY25: 30.2) 25 eNPS1 Group eNPS (FY25: 36) 284 Post consumer waste collected for reuse or recycling 79% of operational waste diverted from landfill (FY25: 79%) 492 Tier 1 factory ethical assessments completed in FY26 reduction tonnes EMISSIONS TRIFR (Total recorded injury frequency rate) TEAM ENGAGEMENT CIRCULARITY OPERATIONAL WASTE ETHICAL SOURCING 1. eNPS (employee Net Promoter Score) in FY25 excludes DC team members as these were not surveyed in FY25
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13 Financial Performance Stefan Knight Group CFO
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Operating profit improved by $21.3m on broadly flat comparable sales, as higher gross margin and lower operating costs rebuilt operating leverage FINANCIAL PERFORMANCE 1. Comparable 52 week removes the 53 rd week of FY25 2. Same store sales removes the 53rd week of FY25, excludes online, NLG Commercial, and the impact of opening and closing of sto res during the reported and comparable year 3. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure. For a reconciliation between Operating Profit and Reported EBIT, refer to Slide 31 of this presentation and Note 2.0 of the financial statements 4. Adjusted NPAT is before continuing operations before unusual items and is a non -GAAP measure. For a reconciliation between Adjus ted and Statutory NPAT, refer to slide 31 5. Reported NPAT is attributable to shareholders and is adjusted for minority interests Year in Review • Operating profit increased to $22.6m from $1.3m, driven by improved margin and cost discipline in a challenging consumer environment • Gross margin increased 40bps to 32.6%, with a 90bps second-half improvement led by Warehouse Stationery and Noel Leeming and supported by The Warehouse’s recovery in Q4 • Cost of doing business reduced by $29.8m, or 3.0%, and improved 40bps to 31.8% of sales, led by lower support office, IT and depreciation costs • Both levers, margin and cost, moved the right way in the same year — the first time since FY21 • The seasonal second-half loss narrowed to $4.3m from $18.2m, contributing $13.9m of the Group’s $21.3m full-year earnings improvement $ million FY26 52 weeks FY25 53 weeks Var Sales revenue 3,027.6 3,086.7 (1.9%) Gross profit 986.6 995.1 (0.9%) Gross margin % 32.6% 32.2% +40 bps Cost of doing business 964.0 993.8 (3.0%) CODB % of sales 31.8% 32.2% (40) bps Operating profit³ 22.6 1.3 +$21.3m Operating margin % 0.7% 0.0% +70 bps Adjusted NPAT⁴ 13.5 (4.5) +$18.0m Reported NPAT5 11.2 (2.8) +$14.0m Dividend declared - - - REPORTED REVENUE $3,027.6m COMPARABLE 52 WEEKS1 (0.2%) SAME-STORE SALES² +0.4% Group financial performance 14
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GROUP GROSS PROFIT MARGIN · % OF SALES THE WAREHOUSE , GP % BY QUARTER · STRONG FINISH IN RED Group • Group gross profit margin increased 40bps to 32.6%, with the full-year improvement delivered through a 90bps uplift in the second half • The Warehouse was the primary driver, as first-half clearance activity gave way to stronger underlying trading margins in the fourth quarter • Noel Leeming and Warehouse Stationery also delivered improved margin performance through the year, supporting a broader-based Group recovery The Warehouse • First-half margin reflected the clearance of aged inventory from prior years, with the impact reducing as the year progressed • Fourth-quarter margin increased to 36.9% led by Home and Apparel • The Warehouse exited FY26 with cleaner inventory, improved trading mechanics and refreshed ranges heading into FY27 • We seek further opportunity for margin expansion as fundamental retail capability is restored and new ranges support more full price sales H1 (20)bps · H2 +90bps Full year 32.6% vs 32.2% +40bps Gross margin overview Group gross profit margin increased 40bps to 32.6%, driven by an improved second-half from all three brands and a strong fourth-quarter contribution from The Warehouse 15 FINANCIAL PERFORMANCE
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1. Operating profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure. For a reconciliation between Operating Profit and Reported EBIT, refer to Slide 31 of this presentation and Note 2.0 of the financial statements 2. Cost of Doing Business (CODB) excludes the impact of NZ IFRS 16, unusual items, and is a non -GAAP measure GROSS PROFIT MARGIN AND COST OF DOING BUSINESS² · % OF SALES Overview • Gross margin increased to 32.6%, while the cost of doing business reduced to 31.8% of sales • This lifted operating profit to $22.6m and operating margin to 0.7% • At the Group’s current sales base, every 10bps of operating margin represents approximately $3m of operating profit¹ • All three brands contributed to the second-half improvement: Warehouse Stationery maintained its stronger performance, Noel Leeming continued to improve margin, and The Warehouse recovered strongly in Q4 • Improvement occurred alongside inventory discipline, with Group inventory reducing by $37.9m and aged inventory also declining by 130 bps 16 Operating leverage returns for the first time since FY21 FINANCIAL PERFORMANCE Gross margin improved and the cost of doing business reduced in FY26, lifting operating margin 0.7% FY25:0.0% - a 70bps improvement FY26 OPERATING MARGIN
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The cost reset programme • Cost of doing business1 reduced by $29.8m, reflecting delivery of the cost reset programme and the additional trading week in FY25 • CODB1 improved by 40bps to 31.8% of sales, making a material contribution to the Group’s profitability uplift • Employee expenses reduced by $6.9m, with savings from the support office restructure and TCS partnership partly offset by higher store and distribution centre wages primarily driven by wage inflation • Employee expenses also benefited from one-off savings arising from the timing of the TCS implementation • IT costs reduced by $12.6m, driven by lower support charges and more disciplined project activity • Further benefits came from lower SaaS and advertising costs • Depreciation and amortisation reduced by $9.1m as earlier system and previous store investment programmes continued to amortise and capital expenditure was tightly managed 1. Cost of Doing Business (CODB) excludes the impact of NZIFRS 16, unusual items, and is a non-GAAP measure 2. Approximately $4m of FY25 Brand and SSO comparatives have been reclassified to align with FY26 and future allocation basis As % of sales 32.6% 32.2% 31.8% CODB1 BY ALLOCATION $ MILLION FY26 52 weeks FY252 53 weeks Variance Brand costs 683.8 682.5 +0.2% Support office costs 226.2 248.1 (8.8%) Depreciation & amortisation 54.0 63.2 (14.5%) Total cost of doing business 964.0 993.8 (3.0%) CODB BY CATEGORY $ MILLION CODB Overview 17 FINANCIAL PERFORMANCE
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1. Comparable 52 week removes the 53rd week of FY25 2. Same store sales removes the 53rd week of FY25, excludes online, and the impact of opening and closing of stores during the r eported and comparable year 3. Foot traffic and basket size are calculated on a 52 week same store basis 4. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure 5. Sales density is calculated on a 52 -week basis The Warehouse reduced its operating loss in FY26, supported by a stronger second half. The immediate aim is to return the brand to profitability Performance • Same-store sales increased as customers bought more items, partly offset by lower average prices in a value conscious market • Gross margin improved in the second half and exited the year ahead of FY25, with the strongest improvement in Q4 • Home and Apparel led the margin recovery, reinforcing the importance of these higher margin categories to The Warehouse’s earnings • Lower foot traffic was offset by better conversion and larger baskets, with customers making fewer but more valuable visits • Online sales remain an area of opportunity. New offers, including The Warehouse Club and DoorDash, supported customer engagement, while stronger online margins more than offset lower sales FY26 52 weeks FY25 53 weeks Var Sales ($ m) 1,774.9 1,816.5 (2.3%) Operating profit / (loss) ($ m) (7.5) (12.2) +$4.7m Operating margin (0.4%) (0.7%) +30 bps Online sales ($ m) 78.6 83.2 (5.5%) Online penetration 4.4% 4.6% (20) bps Stores (#) 84 84 — Sales density5 ($/sqm) 3,901 3,870 +0.8% 18 The Warehouse BRAND PERFORMANCE SAME-STORE SALES² +0.6% BASKET SIZE³ +0.8% OPERATING PROFIT⁴ / (LOSS) $(7.5)m Improved by $4.7m, with most of the improvement in the second half UNITS +1.7% | ASP (1.0%) $1,774.9m VS COMPARABLE 52 WEEKS1 (0.7%) SALES FOOT TRAFFIC (0.3%)
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Home and Apparel margins improving Home and Apparel are important to The Warehouse’s profitability, representing nearly half of sales and including some of its highest-margin categories. Margins improved in both areas through better buying, stronger ranges and improved execution Behind the improvement: stronger buying and planning discipline, rebuilt ranges and price points Next: continue strengthening ranges, full-price sell-through and margin delivery across Home and Apparel HOME AND APPAREL · CASH GROSS MARGIN %, FY22–FY26 Up in both FY26 Apparel Home WHAT DROVE FY26 APPAREL ✓ More full-price sales — supported by better sell-through ✓ Better margins – across full-price and clearance sales ✓ Broad-based improvement: led by Womenswear, with Menswear and Kidswear also ahead HOME ✓ Aged inventory reduced—margins improved even though we cleared more stock ✓ Home Textiles led the improvement, with Home Furnishings, Seasonal Home and Seasonal Appliances also ahead → Gardening and Storage volumes increased, but at lower margins 19 BRAND PERFORMANCE - THE WAREHOUSE
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FY26 52 weeks FY25 53 weeks Var Sales ($ m) 227.6 226.0 +0.7% Operating profit / (loss) ($ m) 15.9 8.2 +$7.7m Operating margin 7.0% 3.6% +340 bps Online sales ($ m) 16.2 15.8 +2.5% Online penetration 7.1% 7.0% +10 bps Stores (#) 67 66 +1 Sales density5 ($/sqm) 4,341 4,297 +1.0% 1. Comparable 52 week removes the 53rd week of FY25 2. Same store sales removes the 53rd week of FY25, excludes online, and the impact of opening and closing of stores during the r eported and comparable year 3. Foot traffic is calculated on a 52 week same store basis 4. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure 5. Sales density is calculated on a 52 -week basis Warehouse Stationery returned to sales growth and nearly doubled operating profit, supported by stronger margins and disciplined cost and stock management Performance • Sales returned to growth with both standalone stores and the 42 stores within The Warehouse contributing • Operating profit increased $7.7m to $15.9m, with operating margin improving to 7.0% • Growth was led by Print & Create, Art & Craft and Office Furniture • Print & Create benefited from growth in digital printing, copying and personalised products. Art & Craft and Office Furniture also grew, supported by stronger ranges • Disciplined pricing and stock management supported gross profit growth across all categories along with improved range • One store opened in Wellington Central during FY26, followed by Whitianga at the start of FY27 20 Warehouse Stationery BRAND PERFORMANCE SAME-STORE SALES² +2.0% FOOT TRAFFIC³ +0.2% Conversion improved too OPERATING PROFIT⁴ / (LOSS) $15.9m Up 94% on FY25 operating profit of $8.2m UNITS +3.4% | ASP (1.3%) $227.6m VS COMPARABLE 52 WEEKS1 +2.5% SALES
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Profit up $10.1m on flat comparable sales. Noel Leeming ran a better business in FY26 and is now investing to grow it Performance • Comparable sales were broadly flat, with non-repeatable commercial sales in the prior year being offset by underlying growth in the retail business • Operating profit increased by $10.1m to $21.8m, with operating margin improving to 2.1% • Appliances and core technology led growth, supported by commercial wins, new brands and the Windows 10 and 3G transitions • Intense competitor pricing in audio-visual and computing weighed on sales, with Noel Leeming maintaining pricing discipline to protect margin and gain share where product and service are a difference • Online grew strongly and now accounts for around one dollar in eight of the brand’s sales • Investment in the store network continues, with Queen Street opened in September 2026 and Mangawhai planned for late 2027 • Looking ahead we are focused on returning to top line growth and maintaining market share. We will do this by capitalising on our scale advantage and continuing to make service a clear point of difference for customers 21 Noel Leeming BRAND PERFORMANCE SAME-STORE SALES² (0.5%) ONLINE SALES GROWTH³ +13.2% Improved on-line traffic and conversion OPERATING PROFIT⁴ / (LOSS) $21.8m Up $10.1m on FY25UNITS (3.9%) | ASP +3.6% | FOOT TRAFFIC3 (0.5%) $1,017.4m VS COMPARABLE 52 WEEKS1 (0.2%) SALES $ million FY26 52 weeks FY25 53 weeks Var Sales ($ m) 1,017.4 1,038.1 (2.0%) Operating profit ($ m) 21.8 11.7 +$10.1m Operating margin 2.1% 1.1% +100 bps Online sales5 ($ m) 133.0 117.5 +13.2% Online penetration 13.1% 11.3% +180 bps Stores (#) 66 66 — Sales density6 ($/sqm) 12,734 12,724 +0.1% 1. Comparable 52 week removes the 53rd week of FY25 2. Same store sales removes the 53rd week of FY25, excludes online, and the impact of opening and closing of stores during the r eported and comparable year 3. Foot traffic is calculated on a 52 week same store basis 4. Operating Profit (EBIT pre-IFRS 16) excludes the impact of NZ IFRS 16 and unusual items and is a non -GAAP measure 5. Online sales in FY25 was stated as $108.7 million. This has been re -stated to $117.5 million in this presentation recognising a reclassification of commercial online sales 6. Sales density is calculated on a 52 -week basis
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($96.1m) Opening net debt +$193.5m Operating cash flow ($19.4m) Capital expenditure2 ($94.7m) Lease payments ($0.3m) Other¹ ($17.0m) Closing net debt Free cash flow1: $79.4m FREE CASH FLOW $79.4m A $124.6m improvement from FY25 AVERAGE DAILY BORROWINGS -45% reduction Against FY25 daily average BANK INTEREST COST $2.7m Reduced 60% on lower debt levels WHAT IT SAYS • Operating cash flow improved by $121.2m to $193.5m, supported by stronger trading performance and improved working capital. FY25 was impacted by an extra week of negative net cash-flow • Free cash flow increased to $79.4m from an outflow of $45.2m in FY25, after capital expenditure and lease payments • Capital expenditure increased 54% to $19.4m as investment shifted towards stores, while net debt reduced by $79.1m to $17.0m • The Group remains compliant with all banking covenants and has access to available facilities to meet its needs 1. Free cash flow is calculated as Operating cash flow less capital expenditure and lease principal payments 2. The difference between cash flow capital expenditure of $19.4 million above and capital expenditure of $21.1m on the Project expenditure slide and in Note 9.1 and Note 9.2 of the financial statements is due to timing of accruals and creditor payments 22 Cash flow and net debt GROUP PERFORMANCE Strong operating cash flow funded increased capital investment and reduced net debt by $79.1m to $17.0m
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Closing inventory declined by $37.9m, reflecting lower aged stock and faster Group stock turn, while further improvement remains a priority CLOSING INVENTORY · $ MILLION 562.3 FY22 493.3 FY23 472.1 FY24 476.7 FY25 438.8 FY26 −$37.9m vs FY25 $438.8m CLOSING INVENTORY FY25 $476.7m 21.8% AGED INVENTORY1 FY25 23.1% 4.7x GROUP STOCK TURN FY25 4.6x INVENTORY BY BRAND · $ MILLION The Warehouse + Warehouse Stationery FY25 345.8 FY26 309.2 −10.6% Noel Leeming FY25 131.0 FY26 129.6 −1.0% PRUDENT PROVISIONING $18.9m inventory provisions 4.7% of inventory cost, up from 3.7% COMMENTARY Lower inventory was driven primarily by The Warehouse and Warehouse Stationery, including a $19.7m reduction in goods in transit. Aged inventory reduced to 21.8% from 23.1%, while provisions increased to address selected aged, slow-moving and end-of-life stock. The reset supports stronger stock flow and working-capital discipline, while clearance plans remain actively managed. 1. Aged inventory calculated as stock over six months old 23 Inventory improvements strengthened the balance sheet GROUP PERFORMANCE
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Project expenditure TOTAL PROJECT EXPENDITURE1 $27.8m FY25: $21.0m CAPITAL EXPENDITURE $21.1m 76% of project spend PROJECT EXPENDITURE BY CATEGORY · $ MILLION $ million FY26 FY25 Store development, operations & property 13.0 7.3 Information systems 10.1 13.1 Digital 3.3 0.1 Supply chain 1.4 0.5 Total project expenditure 27.8 21.0 of which capital expenditure 21.1 12.4 of which SaaS & project opex 6.7 8.6 WHAT IT SAYS • Total project expenditure increased $6.8m to $27.8m, with the investment mix shifting toward capital expenditure • Capital expenditure increased $8.7m to $21.1m, primarily reflecting higher investment in store development, operations and property. Digital and supply chain capital investment also increased • Key investments include fit-out of new stores and relocations, improved LED lighting and HVAC in stores and in-store digital screen deployment • SaaS and project opex reduced $1.9m to $6.7m. The reduction was concentrated in information systems, partly offset by higher digital and supply chain project opex 1. Total project expenditure includes capital expenditure, prepayments, SaaS expenditure and project operating expenditure 24 GROUP PERFORMANCE Investment lifted in capital expenditure led by stores, operations and property Store development, operations & property Information systems Digital Supply chain FY26 FY26 capital FY26 SaaS & opex FY25 FY25 capital FY25 SaaS & opex
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25 Mark Stirton Group CEO The Year Ahead
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The year ahead TRADING UPDATE Trading in the first eight weeks of FY27: Group sales were broadly in line with the prior year, with margin performance ahead of the prior comparable period ENVIRONMENT The retail environment remains challenging , with cautious consumer spending and continued volatility. We will remain focused on the factors within our control THE WAREHOUSE Margin recovery at The Warehouse remains our most important earnings priority , while continuing to deliver value for our customers. This will be supported by continued improvements in product ranges, pricing, merchandise planning and inventory management DISCIPLINE Cost, capital and working-capital discipline will continue, alongside further work to strengthen sourcing, supply-chain performance and inventory productivity across the Group BRAND AND STORE GROWTH We will invest selectively to grow each of our retail brands, strengthening The Warehouse customer proposition, growing Noel Leeming and Warehouse Stationery, and investing in new and existing stores where we see attractive returns. INVESTOR DAY The launch of This Is Warehouse Country marks the next phase of The Warehouse’s recovery, with our longer-term retail-led strategy and pathway to stronger, more sustainable returns to be presented at Investor Day in November 2026 ANNUAL RESULTS 26
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Building exceptional retail brands 27
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28 Appendix 29 Sales summary 30 Quarterly sales by brand 31 EBIT and NPAT reconciliation 32 Investor metrics 33 Disclaimer 28
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$ million The Warehouse Warehouse Stationery Noel Leeming Group FY26 reported sales (52 weeks) 1,774.9 227.6 1,017.4 3,027.6 FY25 reported sales (53 weeks) 1,816.5 226.0 1,038.1 3,086.7 FY26 growth on reported FY25 (2.3%) +0.7% (2.0%) (1.9%) FY25 sales on a 52-week basis 1,787.7 222.0 1,019.0 3,034.8 FY26 growth on 52-week FY25 (0.7%) +2.5% (0.2%) (0.2%) FY26 same-store sales growth (52 weeks) +0.6% +2.0% (0.5%) +0.4% FY26 H1 sales (26 weeks) 949.5 116.1 542.2 1,612.1 FY25 H1 sales (26 weeks) 944.7 109.8 548.9 1,607.2 H1 growth +0.5% +5.7% (1.2%) +0.3% FY26 H2 sales (26 weeks) 825.4 111.5 475.2 1,415.5 FY25 H2 sales (27 weeks, as reported) 871.8 116.2 489.2 1,479.5 H2 growth on reported FY25 (5.3%) (4.0%) (2.9%) (4.3%) H2 growth on 26 comparable weeks (2.1%) (0.6%) +1.1% (0.9%) 29 Sales summary APPENDIX
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$ million Q1 Q2 Q3 Q4 FY Q4 on 13 comparable wks The Warehouse — FY26 389.0 560.5 405.3 420.1 1,774.9 — FY25 386.3 558.4 415.9 455.9 1,816.5 — growth +0.7% +0.4% (2.5%) (7.9%) (2.3%) (1.6%) Warehouse Stationery — FY26 52.2 63.9 57.1 54.4 227.6 — FY25 50.9 58.9 58.8 57.4 226.0 — growth +2.6% +8.5% (2.9%) (5.2%) +0.7% +1.9% Noel Leeming — FY26 230.7 311.5 236.6 238.6 1,017.4 — FY25 229.1 319.8 234.9 254.3 1,038.1 — growth +0.7% (2.6%) +0.7% (6.2%) (2.0%) +1.4% Group (incl. Other) — FY26 674.1 938.0 700.8 714.7 3,027.6 — FY25 668.0 939.2 710.5 769.0 3,086.7 — growth +0.9% (0.1%) (1.4%) (7.1%) (1.9%) (0.3%) 30 Quarterly sales by brand FY26 versus FY25 as reported. The 53rd week fell in the FY25 fourth quarter; a 13-week comparison is shown for Q4. APPENDIX
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Operating Profit NPAT2 $ million FY26 FY25 FY26 FY25 Reported earnings 56.6 40.5 11.2 (2.8) Statutory Restructuring costs 5.7 — 4.3 — Head office redundancies Adjustments for NZ IFRS 161 (39.7) (39.2) (2.0) (1.7) Lease accounting Adjusted earnings 22.6 1.3 13.5 (4.5) Non-GAAP RESTRUCTURING • Restructuring costs of $5.7m before tax relate to head-office redundancies arising from the cost reset programme and TCS partnership NZ IFRS 16 • Operating Profit excludes NZ IFRS 16 to maintain comparability with historical performance and common market practice. The FY26 adjustment was $39.7m at EBIT and $2.0m at NPAT 1. Refer to Note 2.2 of the Financial Statements for further details on the NZ IFRS 16 adjustment 2. Adjusted NPAT is from continuing operations before unusual items and is a non -GAAP measure. A reconciliation between Adjusted an d Statutory NPAT is located in Note 5.0 of the financial statements. 31 EBIT and NPAT reconciliation For the 52 weeks ended 2 August 2026 APPENDIX
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FY26 FY25 Returns Return on equity1 3.8% (0.8%) Return on net operating assets2 3.6% 3.0% Dividend payout ratio — — Cash generation Free cash flow3 $79.4m $(45.2)m Cash conversion ratio4 1.29x (0.50)x Stock turn (times) 4.7 4.6 Gearing Net debt $17.0m $96.1m Gearing (net debt over net debt plus equity) 5.2% 24.3% Profitability Gross profit margin 32.6% 32.2% CODB as a percentage of sales 31.8% 32.2% Operating profit margin 0.7% 0.0% 1. Return on Equity is calculated as Net Profit from Continuing Operations After Tax / average Shareholder Equity 2. Return on Net Operating Assets is calculated as Net Operating Profit After Tax (excluding interest) / average Net Operating A ssets 3. Free cash flow is calculated as Operating cash flow less capital expenditure and lease principal payments 4. Cash conversion is calculated as Operating cash flow / EBITDA on a pre -IFRS 16 basis 32 Investor metrics APPENDIX 32
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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 financial statements for the 52 weeks ended 2 August 2026, 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. 33 Disclaimer