| Tue 2 Mar 2010, 14:45 | | SHF - Steinhoff - Unaudited interim results for the six months ended 31 |
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SHF SHFF
SHF
SHF - Steinhoff - Unaudited interim results for the six months ended 31
December 2009
Steinhoff International Holdings Limited
Registration number: 1998/003951/06
(Incorporated in the Republic of South Africa)
JSE share code: SHF ISIN code: ZAE000016176
("Steinhoff" or "the company" or "the group")
Unaudited interim results for the six months ended 31 December 2009
Operating margin increased to 10.1% (H1 09: 9.5%)
Headline earnings increased 4% to R1 554m (H1 09: R1 499m)
Growth in intra-group sales of 28%
Net cash flow from operating activities: R1.4bn (H1 09: R1.4bn)
Net Gearing at 36% (FY 09: 35%)
Condensed consolidated income statement
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 June
2009 2008 % 2009
(Rm) Notes Unaudited Unaudited change Audited
Revenue 24 846 25 940 (4) 50 869
Operating profit before
depreciation and capital items
2 987 3 012 (1) 6 127
Depreciation (476) (543) (974)
Operating profit before capital
items 2 511 2 469 2 5 153
Capital items 1 (41) 40 49
Earnings before interest,
dividend income, associate
earnings and taxation
2 470 2 509 (2) 5 202
Net finance charges (509) (609) (1 001)
Dividend income - - 1
Earnings before associate
earnings and taxation 1 961 1 900 3 4 202
Share of profit/(loss) of
associate companies 21 (1) 6
Profit before taxation 1 982 1 899 4 4 208
Taxation (248) (165) (581)
Profit for the period 1 734 1 734 - 3 627
Profit attributable to:
Owners of the parent 1 579 1 598 (1) 3 379
Non-controlling interests 155 136 248
Profit for the period 1 734 1 734 - 3 627
Average currency translation rate
(rand:euro)
11.1500 12.4152 (10) 12.3503
Headline earnings per ordinary
share (cents) 115.1 117.3 (2) 251.5
Diluted headline earnings per
ordinary share (cents)
112.8 114.3 (1) 241.9
Basic earnings per ordinary share
(cents) 113.9 120.2 (5) 254.7
Fully diluted earnings per
ordinary share (cents)
111.6 117.1 (5) 244.7
Number of ordinary shares in
issue (m) 1 402 1 280 10 1 280
Weighted average number of
ordinary shares in issue (m)
1 350 1 278 6 1 283
Earnings attributable to ordinary
shareholders (Rm)
2 1 537 1 537 - 3 267
Headline earnings attributable to
ordinary shareholders (Rm)
3 1 554 1 499 4 3 226
The capitalisation share award on 7 December 2009, led to the restatement of
comparative per share numbers, none of which resulted in a deviation of more
than 1.4 cents.
ADDITIONAL INFORMATION
Six months Six months Year
ended ended ended
31 Dec 31 Dec 2008 30 June
2009 2009
(Rm) Unaudited Unaudited Audited
Note 1: Capital items
Foreign currency translation
reserve released on disposal of
subsidiary - - 5
Impairments (3) - (12)
(Loss)/profit on sale of
investments and associate
companies (37) - 1
Loss on scrapping of vehicle
rental fleet (3) (3) (6)
Profit on disposal of investment
properties - 19 18
Profit on disposal of property,
plant and equipment 2 24 43
(41) 40 49
Note 2: Earnings attributable to
ordinary shareholders
Earnings attributable to owners 1 579 1 598 3 379
Dividend entitlement on non-
redeemable cumulative preference
shares (42) (61) (112)
1 537 1 537 3 267
Note 3: Headline earnings
attributable to ordinary
shareholders
Earnings attributable to owners 1 579 1 598 3 379
Adjusted for:
Capital items (note 1) 41 (40) (49)
Taxation effects of capital items (24) 2 1
Remeasurements included in share
of profit/(loss) of associate
companies - - 7
Dividend entitlement on non-
redeemable cumulative preference
shares (42) (61) (112)
1 554 1 499 3 226
Condensed consolidated statement of comprehensive income
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 June
2009 2008 % 2009
(Rm) Unaudited Unaudited change Audited
Profit for the period 1 734 1 734 - 3 627
Other comprehensive
income/(loss)
Actuarial gain/(loss) on
defined benefit plans 12 (13) (31)
Exchange differences on
translation of foreign
subsidiaries (149) (334) (2 587)
Net value gain/(loss) on
cash flow hedges 39 13 (49)
Deferred taxation (18) - 8
Other comprehensive loss for
the period, net of taxation
(116) (334) (65) (2 659)
Total comprehensive income
for the period 1 618 1 400 16 968
Total comprehensive income
attributable to:
Owners of the parent 1 517 897 69 1 102
Non-controlling interests 101 503 (134)
Total comprehensive income
for the period 1 618 1 400 16 968
Condensed consolidated statement of financial position
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited Unaudited Audited
Assets
Non-current assets
Property, plant and equipment,
investment properties and biological
assets 15 755 11 655 11 277
Intangible assets and goodwill 18 625 21 564 18 875
Investments and loans 2 924 1 694 2 368
Investments in associate companies 924 2 589 3 005
Deferred taxation assets 1 134 1 386 1 101
39 362 38 888 36 626
Current assets
Accounts receivable, short-term loans
and other current assets 9 289 10 845 9 168
Inventories 5 051 5 318 4 757
Cash and cash equivalents 5 026 4 916 4 736
19 366 21 079 18 661
Total assets 58 728 59 967 55 287
Equity and liabilities
Capital and reserves
Ordinary share capital and reserves 23 608 20 855 21 021
Preference share capital 1 042 1 042 1 042
24 650 21 897 22 063
Non-controlling interests 2 942 3 479 2 861
Total equity 27 592 25 376 24 924
Non-current liabilities
Deferred taxation liabilities 3 053 3 245 3 020
Interest-bearing long-term liabilities
12 816 12 809 12 704
Other long-term liabilities and
provisions 898 1 392 963
16 767 17 446 16 687
Current liabilities
Interest-bearing short-term
liabilities 6 069 5 475 5 178
Accounts payable, provisions and other
current liabilities 8 300 11 670 8 498
14 369 17 145 13 676
Total equity and liabilities 58 728 59 967 55 287
Net asset value per ordinary share
(cents) 1 684 1 630 1 642
Gearing ratio (net) (%) 36 39 35
Closing exchange rate (rand:euro) 10.6400 13.2037 10.8265
Condensed consolidated statement of cash flows
Six Six Year
months months ended
ended ended
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited Unaudited Audited
Cash generated before working capital
changes 2 953 2 942 5 871
Net changes in working capital
(Increase)/decrease in inventories (449) 165 541
Increase in receivables (532) (1 184) (933)
Increase/(decrease) in payables 73 261 (1 545)
Cash generated from operations 2 045 2 184 3 934
Net finance charges (474) (549) (884)
Dividends paid (80) (96) (158)
Dividends received - - 1
Taxation paid (123) (161) (309)
Net cash inflow from operating
activities 1 368 1 378 2 584
Net cash outflow from investing
activities (811) (1 418) (3 987)
Net cash (outflow)/inflow from
financing activities (207) (253) 1 702
Net increase/(decrease) in cash and
cash equivalents 350 (293) 299
Effects of exchange rate changes on
cash and cash equivalents (60) 214 (558)
Cash and cash equivalents at beginning
of period 4 736 4 995 4 995
Cash and cash equivalents at end of
period 5 026 4 916 4 736
Condensed consolidated statement of changes in equity
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited Unaudited Audited
Balance at beginning of the period 24 924 24 784 24 784
Changes in ordinary share capital and
share premium
Capital distribution (112) (761) (761)
Deferred taxation on issue of treasury
shares 2 - -
Issue of shares as purchase
consideration 922 - -
Issue of shares in terms of the
deferred delivery share scheme - 11 11
Net utilisation/(purchases) of treasury
shares 295 (24) (33)
Changes in reserves
Total comprehensive income for the
period attributable to owners of the
parent 1 517 897 1 102
Ordinary dividends (6) - -
Preference dividends (51) (57) (118)
Share-based payments 26 21 48
Other reserve movements (6) (4) (1)
Changes in non-controlling interests
Total comprehensive income for the
period attributable to non-controlling
interests 101 503 (134)
Dividends and capital distributions
paid (24) (36) (39)
Exchange differences on consolidation
of foreign subsidiaries 6 32 24
Other transactions with non-controlling
interests (2) 10 41
Balance at end of the period 27 592 25 376 24 924
Comprising:
Ordinary share capital and share
premium 4 825 3 727 3 718
Preference share capital and share
premium 1 042 1 042 1 042
Distributable reserves 17 304 14 058 15 783
Actuarial gains reserve 18 34 24
Cash flow hedging and other fair value
reserves (11) 13 (50)
Convertible and redeemable bonds
reserve 353 353 353
Foreign currency translation reserve 680 2 279 775
Share-based payment reserve 450 396 424
Statutory reserves (11) (5) (6)
Non-controlling interests 2 942 3 479 2 861
27 592 25 376 24 924
Segmental analysis
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 June
2009 2008 % 2009
(Rm) Unaudited Unaudited change Audited
Revenue
Retail activities
- Household goods and building
supplies 10 099 10 152 (1) 21 660
- Automotive 5 796 5 550 4 10 202
Manufacturing and sourcing of
household goods and related
raw materials 12 560 12 256 2 23 791
Logistics services 2 934 3 043 (4) 5 776
Corporate services
- Brand management 179 192 (7) 414
- Investment participation 133 92 45 254
- Properties 179 - -
- Central treasury and other
activities 146 258 (43) 251
32 026 31 543 2 62 348
Intersegment eliminations (7 180) (5 603) 28 (11 479)
24 846 25 940 (4) 50 869
Operating profit before
capital items
Retail activities
- Household goods and building
supplies 598 522 15 1 379
- Automotive 122 125 (2) 283
Manufacturing and sourcing of
household goods and related
raw materials 1 128 1 221 (8) 2 560
Logistics services 335 289 16 677
Corporate services
- Brand management 179 192 (7) 414
- Investment participation 133 92 45 254
- Properties 97 - -
- Central treasury and other
activities 160 305 (48) 324
2 752 2 746 - 5 891
Intersegment eliminations (241) (277) (738)
2 511 2 469 2 5 153
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited % Unaudited % Audited %
Total assets
Retail activities
- Household goods and
building supplies 21 743 41 23 994 46 20 328 44
- Automotive 2 305 4 2 426 5 2 314 5
Manufacturing and sourcing
of household goods and
related raw materials 11 881 23 13 214 26 12 072 26
Logistics services 5 162 10 5 395 10 5 261 12
Corporate services
- Brand management 3 458 7 4 265 8 3 837 8
- Investment participation 2 395 5 2 145 4 1 922 4
- Properties 4 891 9 - - - -
- Central treasury and
other activities 545 1 638 1 573 1
52 380 100 52 077 100 46 307 100
Reconciliation of total assets per statement of financial position to total
assets per segmental analysis
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited Unaudited Audited
Total assets per statement of financial
position 58 728 59 967 55 287
Less: Cash and cash equivalents (5 026) (4 916) (4 736)
Less: Investments in associate
companies (924) (2 589) (3 005)
Less: Investments in preference shares (229) (210) (216)
Less: Interest-bearing investments and
loans (169) (175) (1 023)
Total assets per segmental analysis 52 380 52 077 46 307
Geographical information
Six Six Year
months months ended
ended 31 ended31 30 June
Dec 2009 Dec 2008 2009
(Rm) Unaudited % Unaudited % Audited %
Revenue
Continental Europe 9 065 37 10 600 41 19 049 37
Pacific Rim 1 455 6 1 368 5 3 070 6
Southern Africa 10 504 42 10 175 39 19 349 38
United Kingdom 3 822 15 3 797 15 9 401 19
24 846 100 25 940 100 50 869 100
31 Dec 31 Dec 30 June
2009 2008 2009
(Rm) Unaudited % Unaudited % Audited %
Non-current assets
Continental Europe 22 199 56 20 012 51 17 202 47
Pacific Rim 1 375 4 1 433 4 1 262 3
Southern Africa 10 810 27 10 594 27 10 864 30
United Kingdom 4 978 13 6 849 18 7 298 20
39 362 100 38 888 100 36 626 100
Commentary: Review of results
We are pleased to report another set of solid results despite a challenging
consumer environment and volatile economies. The majority of our businesses
have gained market share and increased operating profit margin. We are
comfortable that our underlying businesses have adapted well to the changed
economic environment and remain competitive to continue to deliver the
group`s targeted growth.
Retail activities: Household goods
United Kingdom
The UK retail businessess increased revenues in the seasonally weaker first
half of the financial year. This forms a good base and the businesses are
well positioned for further market share increases.
The excellent sales performance of our largest furniture business, Harveys,
in the first half of the year has slowed in recent weeks due to the adverse
weather conditions. However, the business is still running ahead of last
year.
The two major bed fascias, Bensons and Sleepmasters, had a good first half
with growth in both sales and profit. Gross margin in both businesses is
strong with a good balance of sales across the product sectors: divans,
mattresses and frames.
Continental Europe
The retail business in Continental Europe delivered another set of
commendable results. The prior year store layout and format changes are
delivering benefits with year-on-year turnover growth achieved in these
stores. Revenue continues to benefit from consumers trading down. Stable
demand within the value segment has improved efficiencies and margins.
Industry consolidation and the marked consumer shift to value offerings has
led to opportunities to increase the national store network.
The group continues to invest in successful retailers across the continent.
The improvement in consumer sentiment led to increased interest in our
exclusive studio concepts.
The group continues to examine the eastern European region for continued
penetration of a dedicated large format value retail offering. Consumer
sentiment and spending patterns remain depressed in this territory. However,
the group capitalised on the weak economy and property market and secured
promising future retail sites.
Pacific Rim
Positive consumer sentiment in Australia has resulted in growth within the
furniture and household goods sector. Despite this, intense competitive
pressure has forced discounting and this pressure has been felt most acutely
by Freedom. Snooze and BayLeatherRepublic have both capitalised on stores
traffic through better conversion and higher average sales values in a
destination big ticket environment.
Southern Africa
Market conditions remained extremely competitive for Pennypinchers and
Timbercity during this period. Revenue remained under pressure and was below
expectations for the period. These businesses were able to reduce overheads
and improve margins despite continued pressure on the building and
construction industry.
Retail activities: Automotive
The period under review remained particularly challenging for the South
African automotive industry. New vehicle volumes for the industry as a whole
contracted by nearly 23% year-on-year in the second half of 2009. Although
demand improved the industry contraction is mainly as a result of the lack of
credit available to new vehicle buyers. Notwithstanding these conditions, the
Unitrans Automotive division achieved operating profit of R122 million, a 2%
decrease on the previous half-year. The pre-owned vehicle sales, parts and
services delivered strong performances.
Manufacturing and Sourcing
United Kingdom
The manufacturing performance was ahead of expectations in both sales and
profit, although the divisional results were mixed. On the positive side, the
foam conversion operation showed a strong recovery and the upholstery
division continues to benefit from being an integrated part of the Harveys
retail supply chain. However, Relyon was unable to capitalise fully on
increased factory demand, but is progressing well on rectifying this
shortfall.
Continental Europe
The consolidation in the industry continues to benefit Steinhoff`s
manufacturing operations in Europe. The renewed focus on flagship
manufactured brands such as Puris and Hukla, has resulted in record written
sales at the renowned Cologne furniture fair in Germany. The depreciating
Polish zloty has further enhanced the eastern European manufacturing
operations, which continue to benefit from the operational efficiencies and
increased productivity of the Polish factories. This is as a result of the
successful integration into one central organisation based in Rzepin.
International Sourcing
The relatively stable exchange rate between the euro and the US dollar during
the period continues to stimulate trade in the far East and this division has
reported volume growth in excess of 60%. The supplier rationalisation
programme and quality expertise within the division have resulted in
excellent customer service levels. Management is increasingly challenged by
capacity constraints within this rapidly growing division and higher shipping
rates.
Southern Africa
The decline in the South African construction and furniture markets continues
to negatively impact on the group`s timber and raw material operations.
Despite the pressure on the industry, the timber and raw material operations
performed to expectations. The group remains well positioned to take
advantage of growth when the industry recovers.
Logistics Services
Southern Africa
Unitrans Logistics reported an exceptional performance, with growth in
operating profit of 16%. Once again, the contractual nature and service-
driven business model proved successful. The Freight and Logistics division
delivered a strong performance on the back of increased supply-chain and
warehousing service contracts, while the Sugar and Agriculture division
reported a substantial improvement. Growing volumes and additional work from
the existing customer base within the Fuel and Chemical division led to
another good performance. Double digit growth in both revenues and operating
profit was achieved by the Passenger division, as a result of a better mix of
business, new long-term commuter contracts, and a healthy margin in the
tourism business.
Continental Europe, United Kingdom, Pacific Rim
The group`s focus on logistical expertise, and its existing warehouse
footprint in Europe and the Pacific Rim, continues to benefit group
operations and alliance retail partners.
Performance
The growth experienced within the group`s European retail operations led to
further integration with intercompany sales increasing by 28% to R7 180
million. The success of the vertically integrated business model is now more
prominent as intragroup volumes are increasing.
Revenue
Foreign revenue reported in euro amounted to EUR1 285 million. The average
exchange rate used for converting euro income and expenditure to rand was
R11.15:EUR1 compared to R12.42:EUR1 in respect of the comparative period (10%
change).
The strengthening of the group`s reporting currency offsets the underlying
growth within the group`s businesses when translated and measured in rand.
Revenue growth in Europe exceeded expectations, especially within the
European retail operations. Manufacturing and sourcing operations again
delivered growth in constant currency: however, most of the growth within the
manufacturing and sourcing division was absorbed by group retail operations
and is therefore eliminated from consolidated turnover for the group.
Unitrans in southern Africa again delivered a solid performance while the
timber and raw material divisions showed no revenue growth as a result of
these businesses` dependency on the currently subdued construction industry
in South Africa.
Operating margin
The group`s operating margin increased to 10.1% (H1 09: 9.5%) for the period.
The increased margin earned in a volatile currency environment further
reflects the group`s sound financial management, the balance brought about by
the diversity of its global operations and the efficiency brought about by
the group`s vertically integrated business model in Europe.
Net finance charges
Net finance charges decreased by 16% to R509 million (H1 09: R609 million)
reflecting the benefits to the group of the low interest rate environment
prevailing in Europe, and also sound cash and working capital management.
Taxation
The group has previously utilised the available taxation losses within the UK
and as a result the UK profits have attracted current tax for the first time
since the acquisition of the UK retail operations in June 2005. Management
anticipates that the average group tax rate should not exceed 15% of pre-tax
income in the foreseeable future.
Profit after tax
Profit after tax for the period was virtually unchanged despite the impact of
the stronger rand (up 10%) when translating euro-denominated earnings into
the group`s reporting currency.
Non-controlling interests
Non-controlling interests` (minority shareholders`) share of profits
increased to R155 million (H1 09: R136 million) mainly as a result of the
increased profits earned by the partially owned retail operations in
Continental Europe.
Headline earnings per share (HEPS) and Earnings per share (EPS)
HEPS decreased by 2% to 115.1 cents per share, and EPS decreased by 5% to
113.9 cents per share, mainly as a result of translating euro profits (up
11.2%) to the reporting currency (rand). The R41 million capital loss largely
comprised the loss on disposal of the group`s associate investment in
Amalgamated Appliance Holdings Limited (AMAP).
Assets
The group`s total assets as at 31 December 2009 amounted to R58 728 million
(FY09: R55 287 million) and net asset value per share increased to 1 684
cents (FY09: 1 642 cents). The majority of the group`s assets are situated in
Europe. These assets were converted at a closing rate of R10.64:EUR1 compared
to R13.20:EUR1 in respect of the comparative period (a 19% decline) and
R10.83:EUR1 compared to the previous financial year end (a 2% decline).
Working capital
The group continues to support strong retailers, backed by credit insurance,
resulting in growth in sales and margins, particularly in the manufacturing
and sourcing division. Stock levels increased moderately as a result of the
severe weather experienced in the northern hemisphere after Christmas into
the first two weeks of January 2010, and stock-build strategies.
The group continues to use working capital investments to support its growth
into new territories.
The group insures its debtors and its exposure to other retailers in which
Steinhoff might be financially interested, either as a result of
participating investments, studio/retail concepts development or other
expansion projects.
Debt
At 31 December 2009, the group had net interest bearing debt of R10.05
billion (FY 09: R8.83 billion) resulting in a net debt:equity ratio of 36%
(FY 09: 35%). All material debt facilities with maturities falling within the
current calendar year, including the EUR235 million syndicated loan, have
been appropriately re-financed (refer Corporate Activity). At 31 December
2009, the group had cash and cash equivalents and confirmed unutilised
borrowing facilities of R8.9 billion (FY 09: R8.6 billion).
Cash flow
The group`s net cash flow generated from operations amounted to R2.05
billion, in line with the comparative period (H1 09: R2.18 billion). Cash
generation is determined after taking into account a net increase in working
capital of R908 million (H1 09: R758 million).
The group`s cash flow from operating activities was maintained at R1.4
billion which underscores the quality of earnings and management`s priority
to continue delivering profitable growth.
Corporate activity
The group concluded, or is in the process of concluding, the following
corporate activities:
the agreement concluded on 31 July 2009 in terms of which Hemisphere
International Properties BV was constituted as a wholly-owned subsidiary of
Steinhoff. Details of this transaction were disclosed in the Directors`
Report for the year ended 30 June 2009;
Steinhoff`s national long-term rating (as reviewed by FitchRatings in
December 2009) is A-(zaf). The outlook for the long-term rating is stable;
and
Steinhoff Europe AG launched the syndication of its refinancing of the
EUR235 million 3-year syndicated loan facility during December 2009. The
transaction closed successfully and received strong support in the banking
market, raising an oversubscription that allowed the group to increase the
facility to EUR340 million, maturing 31 March 2013, at competitive terms;
- The new facility will replace the EUR235 million syndicated facility
maturing the end of July 2010;
- The new facility attracted new lending banks in addition to the existing
core group of banks with eleven international banks joining the group of
three Mandated Lead Arrangers and Coordinators; and
- The transaction was led and coordinated by the three bookrunners: Citibank
International plc, Commerzbank AG and The Royal Bank of Scotland plc.
Distribution of Steinhoff
It is the group`s policy to declare distributions once a year after its
financial year-end 30 June.
Board committees
The Board wishes to inform shareholders that it has amended the composition
of certain of the Board committees and the following changes will be
effective as from date hereof. Dr Steve Booysen has been elected as chairman
of the Audit Committee replacing Mr Dave Brink, who will remain a member of
this committee. In addition, Dr Steve Booysen will chair the Group Risk
Advisory Committee. Furthermore, Mr Dave Brink has been elected to chair the
Human Resources and Remuneration Committee in place of Mr Dirk Ackerman who
retired at the end of 2009.
Outlook
The strengthening of the rand against the euro continues to put pressure on
the group`s rand reported earnings and the current spot-rates are already
well below the average conversion rate applied for the period under review.
Rand strength will impact the group`s full year rand reported earnings if the
growth in euro profits does not outperform the effect of the change in the
average rand translation rate.
In line with the group`s business model of increasing the group`s retail
footprint, corporate opportunities and strategic partnerships are
continuously evaluated, both in Europe and in southern Africa.
The group`s vertically integrated business model remains a key competitive
advantage and, together with its flexibility of supplementing own produced
goods with third party sourced products, continues to result in market share
gains. The buying-down trends in consumer spending patterns continue to
benefit the group`s mass-market discount positioning and bodes well for a
stable performance in the remainder of the financial year. The strategy
employed to dedicate floor space to higher positioned brands in the store
networks of retail partners continues to deliver promising results.
On behalf of the Board of Directors
D Konar MJ Jooste
Non-executive chairman Chief executive officer
2 March 2010
Steinhoff Investment Holdings Limited
Registration number: 1954/001893/06
(Incorporated in the Republic of South Africa)
JSE Code: SHFF ISIN: ZAE000068367
("Steinhoff Investments")
Preference shareholders are referred to the above results of Steinhoff for a
full appreciation of the consolidated results and financial position of
Steinhoff Investments.
Declaration of dividend number 9 to preference shareholders
The board of Steinhoff Investments has resolved to declare a dividend of 402
cents per preference share in respect of the period from 1 July 2009 up to
and including 31 December 2009 (the dividend period), payable on Monday, 26
April 2010, to those preference shareholders recorded in the books of the
company at the close of business on Friday, 23 April 2010. This dividend has
been determined on the basis of 75% of the prime bank overdraft lending rate
of Absa Bank Limited prevailing over the dividend period, applied to the
nominal value plus premium (R100.00 per preference share, in the aggregate).
The dividend is payable in the currency of South Africa.
2010
Last date to trade cum dividend Friday, 16 April
Shares trade ex dividend Monday, 19 April
Record date Friday, 23 April
Payment date Monday, 26 April
Share certificates for preference shares may not be dematerialised or
rematerialised between Monday, 19 April 2010 and Friday, 23 April 2010, both
dates inclusive.
On Monday, 26 April 2010, the preference dividend will be electronically
transferred to the bank accounts of preference shareholders. Preference
shareholders who have dematerialised their shares will have their accounts
credited on Monday, 26 April 2010.
Proposed taxation amendments
We refer to previous communication in our 2009 annual results, released on 8
September 2009, regarding the conversion of Secondary Tax on Companies (STC)
to Dividends Tax.
During the recent 2010 budget speech of the Minister of Finance of South
Africa, it was indicated that although all the relevant taxation treaties had
been renegotiated, a number of issues required further refinement. It appears
that the completion of the Dividends Tax system may be postponed until 2011.
Accordingly, preference shareholders are advised that, until such time as all
the legislative amendments are refined, finalised and promulgated and legal
opinion obtained, it remains impossible to determine exactly what the impact
will be on the cumulative non-redeemable non-participating preference shares
issued by Steinhoff Investments.
A further announcement in this regard will be made once the final detailed
legislation is published and duly considered.
Directorate
Preference shareholders are advised that Mr Dirk Ackerman retired from the
board with effect 1 March 2010 and Dr Steve Booysen has been appointed as a
non-executive director with the effective date hereof.
On behalf of the Board of Directors
D Konar HJK Ferreira
Non-executive director Executive director
2 March 2010
Selected explanatory notes to the financial statements
Statement of compliance
The consolidated interim financial information for the six months ended 31
December 2009, has been prepared in accordance with International Financial
Reporting Standards (IFRS), the interpretations adopted by the International
Accounting Standards Board (IASB), and the requirements of the South African
Companies Act. These condensed interim financial statements are presented in
compliance with IAS 34 - Interim Financial Reporting, and should be read in
conjunction with the annual financial statements for the year ended 30 June
2009.
Basis of preparation
The condensed interim financial statements are prepared in millions of South
African rands (Rm) on the historical-cost basis, except for certain assets
and liabilities which are carried at amortised cost, and derivative financial
instruments and biological assets which are stated at their fair value.
Accounting policies
The accounting policies adopted in the preparation of the condensed interim
financial information are consistent with those of the annual financial
statements for the year ended 30 June 2009, except for the adoption of the
new standards and interpretations which are now effective. IFRS 3 - Business
Combinations and IAS 1 - Presentation of Financial Statements have impacted
the interim financial information. For a full list of standards and
interpretations which have been adopted we refer you to the 30 June 2009
annual financial statements.
Other notes
1. Corporate governance
Steinhoff has embraced the recommendations of the King report on Corporate
Governance and strives to provide reports to shareholders that are timely,
accurate, consistent and informative. Appropriate committee membership
changes have been affected.
2. Social responsibility
Steinhoff continues to be recognised for its corporate social investment
activities. The group remains committed to related initiatives and is
conscious of needs in this regard. A number of social responsibility projects
are continuing.
3. Human resources
A constructive working relationship is maintained with the relevant unions.
Ongoing skills and equity activities continue to ensure compliance with
current legislation.
Plans continue in terms of initiatives embarked upon that contribute to
broader skills development and sourcing appropriately qualified staff on an
ongoing basis.
4. Related party transactions
The group entered into various related party transactions. These transactions
are no less favourable than those arranged with third parties.
5. Further events
No significant events have occurred in the period between the reporting date
and the date of this report.
For more detail on the group`s listed associate company, shareholders are
referred to the results and/or corporate announcements and financial
information of:
- KAP International Holdings Limited - 2 March 2010 -
www.kapinternational.com
Administration
Steinhoff International Holdings Limited
("Steinhoff" or "the company" or "the group")
Registration number: 1998/003951/06
(Incorporated in the Republic of South Africa)
JSE share code: SHF ISIN code: ZAE000016176
Registered office: 28 Sixth Street, Wynberg, Sandton, 2090, Republic of South
Africa
Tel: +27 (11) 445 3000 Fax: +27 (11) 445 3094
Directors: D Konar (chairman), MJ Jooste (chief executive officer), SF
Booysen, DC Brink, YZ Cuba, CE Daun*, HJK Ferreira, SJ Grobler, JF Mouton, FJ
Nel, FA Sonn, BE Steinhoff*, IM Topping#, DM van der Merwe
Alternate directors: JNS du Plessis, KJ Grove, A Kruger-Steinhoff*, AB la
Grange
#British *German non-executive
Company secretary: SJ Grobler
Auditors: Deloitte & Touche
Sponsor: PSG Capital (Proprietary) Limited
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
www.steinhoffinternational.com
To view results on mobile www.steinhoff.mobi
Date: 02/03/2010 14:45:02 Produced by the JSE SENS Department.
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