OUR
INTEGRATED
REPORT

Our Integrated Report is designed to report on how our resources contribute through our retail value creation model to deliver our vision to make sustainable living easy and affordable for everyone. These are demonstrated through the six capitals shown below and detailed in this report.

This is The Warehouse Group’s fifth Integrated Report and aims to:

  • Provide quality information to all stakeholders;
  • Promote a holistic, cohesive and efficient approach to corporate reporting;
  • Enhance accountability and stewardship for the application and use of inputs in the business to deliver retail value; and
  • Support integrated thinking, decision-makingand actions that focus on the creation of value over the short, medium and long term.

At the centre of our Integrated Reporting is the retail value creation model. This attempts to explain how the macro and internal inputs into the business (Capitals) are used through our strategy and business activities to deliver performance outcomes in FY23.

Refer to the following pages for further details on each of these capitals.

This is the third year we have also reported under the Global Reporting Initiatives (GRI) framework. Refer to our Global Reporting Initiatives (GRI) framework page further information on the GRI reporting framework and The Warehouse Group’s material topics, and pages 110 to 113 for the GRI content index.

The Group’s Board and Management have established internal preparation and quality control processes to ensure the quality and integrity of this report. While we have not sought external audit or assurance for the non-financial information contained throughout this Integrated Report,

we have received limited assurance on selected standards of the Group’s GRI disclosures as well as our carbon emissions and energy consumption which are audited by Toitū Envirocare.

Inputs

MANUFACTURED CAPITAL

We strive to build world-class customer experiences and an ecosystem enabled by our portfolio of brands, our supply chain network and enterprise systems.

INTELLECTUAL CAPITAL

Our expertise puts our customers at the centre of all that we do. We have enhanced our focus around five key strategic customer experiences – which are aligned with our purpose, our vision and our values.

SOCIAL AND RELATIONSHIP CAPITAL

We want to build strong relationships with our communities and our stakeholders to deliver sustainable value and positive change.

HUMAN CAPITAL We strive to create a dynamic, purpose-driven organisation that enables, equips and empowers our people to succeed.

FINANCIAL CAPITAL

Our financial capital initiatives continue to focus on ensuring financial resilience while deploying more capital to execute our strategy.

NATURAL CAPITAL

Our vision is to make sustainable living easy and affordable for everyone, to increase the sustainability of our own operations and help our customers save money while doing their bit to save the planet.

FY 22 Outputs

MANUFACTURED CAPITAL

  • 246 stores including 40 SWAS
  • 26 The Warehouse stores with grocery offering including 12 with fresh fruit and veges
  • 72 The Warehouse stores with Garden Centres
  • 14.2% increased foot traffic with in-store sales up 9.7%

INTELLECTUAL CAPITAL

  • Group Store NPS up 2.6pts to 76.3
  • SKU reduction of 4.8% for The Warehouse and 13.6% for Warehouse Stationery
  • Online sales 10.9% of total sales
  • Click & Collect sales 51.8% of online sales from omnichannel brands
  • The Warehouse 10.6% of core retail market share

SOCIAL AND RELATIONSHIP CAPITAL

  • Raised $4.1m for New Zealand charities and communities, $83.4m since 1982
  • Conducted 266 Labour and Environmental third party onsite audits
  • 90% achievement on all environmental factors
  • Started engaging with our suppliers on GHG emissions management as part of our programme to reduce (Scope 3) emissions

HUMAN CAPITAL

  • Women in 50.0% of senior leadership roles
  • 101% gender pay equity
  • Established 26-week full pay Parental Leave P{olicy
  • Critical events: 8 in FY23 (FY22: 52)
  • TRIFR: 32.8 per million hours worked (FY22: 24.7)
  • Lost-Time Injuries reduced by 10.9%

FINANCIAL CAPITAL

  • Operating cashflow $214.2m (FY22: $105.4m)
  • Capital expenditure $113.2m (FY22: $107.5m)
  • Final dividend 8.0 cps
  • $145m Sustainability Linked Loans
  • Liquidity of $421.9m

NATURAL CAPITAL

  • 33% of private label sales from products with sustainable attributes (FY22: 22%)
  • 43% of our private label sales were derived from products with packaging that is compostable or which can be recycled via New Zealand's kerbside recycling infrastructure or instore (FY22: 22%)
  • 7,657 tCO2 e of Scope 1 and 2 emissions (down 43.3%)
  • 100% of the Group’s passenger fleet is full EV
  • Diverted 72.9% of operational waste from landfills
  • Diverted 198.9 tonnes of post-consumer waste from landfill