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’s (WHS) 3Q23 trading update showed Red Sheds sales (~+10% against the prior year) continue to support the wider group, with revenue declines of ~-2% to ~-3% across the other three divisions.</li><li>Group gross margins for the quarter were down on 3Q22 (-160bps) consistent with our expectations for continued margin pressure.</li><li>All brands were affected by year-on-year gross margin reductions, although Red Sheds appears to be faring better with signs of sequential improvement since the interim result.</li></ul>

The Warehouse Group’s (WHS) 3Q23 trading update showed Red Sheds sales (~+10% against the prior year) continue to support the wider group, with revenue declines of ~-2% to ~-3% across the other three divisions.Group gross margins for the quarter were down on 3Q22 (-160bps) consistent with our expectations for continued margin pressure.All brands were affected by year-on-year gross margin reductions, although Red Sheds appears to be faring better with signs of sequential improvement since the interim result.

The Warehouse Group (WHS): 3Q23 Trading Update