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TFG/TFGP - The Foschini Group Ltd - Statement by the CEO The Foschini Group Ltd (formerly Foschini Limited) - Statement by the CEO at the Annual General Meeting Registration number 1937/009504/06 Share codes: TFG - TFGP ISIN codes: ZAE000148466 - ZAE000148516 STATEMENT BY THE CEO At TFG`s 74th Annual General Meeting held today, CEO Doug Murray updated the meeting as follows: "RESULTS FOR 2011 Having experienced improved consumer spending, as a result of our major strategic initiatives, combined with a more positive consumer sentiment, the catalyst of which was the 2010 FIFA World Cup, the group produced a favourable result for 2011. After three very difficult years from 2008 to 2010, there is evidence that the economic cycle has turned and that 2011 was the start of the upturn. The first half of the year produced turnover growth of 12,5% with an increase in HEPS of 16,9% whilst the second half gained increased momentum with turnover growth of 18,1%. For the year as a whole, turnover increased by 15,5% while headline earnings per share increased by 21,3%. Our total dividend for the year increased by 21,5% to 350 cents per share. PROSPECTS FOR THE 2012 FINANCIAL YEAR I would now like to comment briefly on the group`s prospects for 2012. *We expect the benefits of our strategic initiatives and the more positive consumer sentiment to continue in this financial year, but are mindful of the current inflation environment, the potential impact on interest rates and the current fragility of international markets *In line with our strategy of investing for long-term growth, we will continue to open new stores in certain of our formats and we anticipate increasing trading space by approximately 7% in the current year. *Trading conditions for the first five months of this financial year have been encouraging and above expectation, notwithstanding the inflated World Cup base. Total sales have grown by 17,3% over the previous period with same stores sales growth of 10,5%. *RLC statistics clearly indicate that we are gaining market share. Growths in the various merchandise categories are as follows: - Clothing: 18,7% - Jewellery: 6,2% - Cosmetics: 9,7% - Cellphones: 28,1% - Homewares: 15,4% *Our retail debtors` book is performing satisfactorily in the current climate. *Our RCS subsidiary in which we have a 55% shareholding continues to perform well. *We remain confident that we can again deliver a favourable result for this year, albeit against a very strong second half base and remembering that the second half of the year is heavily dependant on Christmas trading, which will largely determine the performance of the group in the second half. ACKNOWLEDGMENTS Once more on behalf of my fellow board members and myself I thank all our dedicated staff for their hard work and continued excellent performance during the year. Cape Town 5 September 2011 SPONSOR: UBS South Africa (Pty) Ltd Date: 05/09/2011 13:15:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
