THE FOSCHINI GROUP LIMITED - Statement by the CEO at the annual general meeting

Statement by the CEO at the annual general meeting

THE FOSCHINI GROUP LTD
Reg. No.: 1937/009504/06
Code : TFG
ISIN : ZAE000148466


STATEMENT BY THE CEO AT THE ANNUAL GENERAL MEETING
At TFG’s 75th Annual General Meeting held today, CEO Doug Murray updated the meeting as follows:
“RESULTS FOR 2012
The strategic initiatives undertaken by our group have produced a good result for the year. In addition, stronger
consumer spending which became evident to us in 2011 financial year continued into the 2012 financial year with
Christmas trading above expectation.
Notwithstanding the strong comparative base, retail turnover increased by 17,0% to R11,6 billion whilst headline
earnings per share increased by 22,1% to 772,0 cents. Our total dividend for the year increased by 30,0% to 455,0 cents
per share.


PROSPECTS FOR THE 2013 FINANCIAL YEAR
I would now like to comment briefly on the group’s prospects for 2013.
*   We expect the benefits of our strategic initiatives to continue into this financial year, though we are mindful of the
    more subdued consumer environment and the strong base established over the last few years.
*   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 satisfactory. Total sales have grown by
    13,2% over the previous period with same stores sales growth of 7,5%.
*   Growths in the various merchandise categories are as follows:
    -    Clothing: 13,8%
    -    Jewellery: 10,1%
    -    Cosmetics: 11,8%
    -    Cellphones: 7,5%
    -    Homewares: 21,5%
*   In the current more challenging credit environment our retail debtors’ book is performing satisfactorily and within
    management expectations.
*   Our RCS subsidiary in which we have a 55% shareholding continues to perform well.
*   Notwithstanding the tougher economic environment, we remain confident that we can again deliver a satisfactory
    result for this year, albeit against a strong base and remembering that the second half of the year is heavily
    dependent 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
3 September 2012
SPONSOR: UBS South Africa (Pty) Ltd

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