New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Warehouse Group Limited / Equity Bottom-Up

<ul><li>The Warehouse Group (WHS) has reported a disappointing 1H23 result with consumer spending slowing, particularly across Noel Leeming and Torpedo7.</li><li>Gross margins fell across -200bps in the first half, primarily due to category mix (higher groceries) and promotional spend in TheMarket</li><li>Underlying NPAT on a post-IFRS 16 basis is -50% below our forecast, reflecting continued operating deleverage across the business and higher depreciation and interest costs.</li></ul>

The Warehouse Group (WHS) has reported a disappointing 1H23 result with consumer spending slowing, particularly across Noel Leeming and Torpedo7.Gross margins fell across -200bps in the first half, primarily due to category mix (higher groceries) and promotional spend in TheMarketUnderlying NPAT on a post-IFRS 16 basis is -50% below our forecast, reflecting continued operating deleverage across the business and higher depreciation and interest costs.

The Warehouse Group (WHS): 1H23 Result – Initial Impressions