Ann: Chairman and CEO Address to Shareholders 2016-SFH.AX, page-20

To clarify, total commitments reduction of $47m between the two years, where the new service agreement of $24m may be a cost offset, such that the net commitment reduction is $23m.

@natnicnak,

The problem with your analysis is that omits to consider to what extent the reduction in the operating lease commitments relates to the company's store base due to the closure of some of the less-profitable, or loss-making, stores in the company's portfolio, as opposed to distribution assets that were being leased, such as warehousing/DCs/logistics premises.

So its not right to say that the $47m reduction in lease commitments relates just to the warehouse service agreement. While I can't say for sure I'll wager that the bulk of it relates to re-structuring of SFH's stores.