To view the PDF file, sign up for a MySharenet subscription.

STEINHOFF INTERNATIONAL HOLDINGS LTD - Audited Results for the year ended 30 June 2015

Release Date: 08/09/2015 14:00
Code(s): SHF SHFF     PDF:  
Wrap Text
Audited Results for the year ended 30 June 2015

STEINHOFF INTERNATIONAL HOLDINGS LIMITED
Registration number: 1998/003951/06 
(Incorporated in the Republic of South Africa) 
("Steinhoff" or "the company" or "the group") 
JSE share code: SHF ISIN: ZAE000016176

Audited provisional results
for the year ended 30 June 2015

-  REVENUE FROM CONTINUING OPERATIONS INCREASED 15%
   TO R135 BILLION
-  HEADLINE EARNINGS FROM CONTINUING OPERATIONS
   INCREASED 36% TO R12.4 BILLION
-  NET CASH INFLOW FROM OPERATING ACTIVITIES INCREASE 26%
   TO R20 BILLION
-  DIVIDEND INCREASED BY 10% TO 165 CENTS PER SHARE
-  PEPKOR ACQUISITION COMPLETE
-  NET ASSET VALUE UP 22% TO R48.25 PER SHARE

Operational review

Integrated retail: Household goods
The group's multi-brand household goods
retail businesses performed well during the
year under review, assisted by its integrated
business model, discount price positioning
and continued investment in the businesses.
Sales for this segment as measured in euro,
increased by 7% to EUR7.6 billion, led by a
strong performance in continental Europe
and the UK. Margins increased by 40 basis
points to 12.5% demonstrating the benefit
of the integrated supply chain in securing
additional margins for the retail operations
via selective participation in key areas of the
supply chain.

Europe
In France, the group's omni-channel strategy
and investment in a customer-centric
convenient store network to optimise its
click-and-collect capabilities continues to
prove successful. Online sales increased by
22% and now represent 7.2% of total revenue
in this country. Despite the strengthening
of the Swiss franc, the combined group
increased revenues and market share in
constant currency. Profitability in Switzerland
was impacted by the rebranding and
restructuring costs resulting from the
combination of the separate regional retail
businesses and the decision to exit the
remaining Fly stores during the period.
Excellent revenue and profitability growth
were recorded in Spain and Portugal,
bolstered by critical mass benefits being
achieved as a result of new store openings in
previous years.

The German household goods market
remained strong and continues to grow
year on year, benefiting the group's growing
footprint in that region. Another six large
format stores were opened during the year
with the group now trading from 108 stores
in that region. Despite the costs associated
with the store openings, margins continue to
improve due to increased brand recognition
and trading densities. The German concept
store has been introduced to Poland and the
Netherlands during the year under review.
Both stores are performing well, with further
expansion planned in the Netherlands during
the next year.

The eastern European region performed
strongly during the year under review,
supporting both the group's retail and
manufacturing divisions in these countries.

United Kingdom and Southeast Asia
The UK group delivered a creditable
performance, led by market share gains in
the bedding retail division and a refurbished
store network. The integrated mattress and
bedding supply chain enables the group to
benefit from the entire supply chain margins
from raw material to end consumer in our
group-supplied product ranges.

The retail operations in Australia and New
Zealand performed well during the year under
review, increasing margin on a relatively stable
turnover compared to that of the previous year.

The acquisition of the Australian bedding
manufacturer Select-O-Pedic was completed
during the year, with good initial results
being achieved by the combined group.

African operations
Major strides have been made in the
restructuring of the household goods retail
fascias in South Africa during the year under
review. The focus to drive a more sustainable
cash sales compared to credit sales mix have
proved successful. In support of this sales
strategy, the brand and cost rationalisation
programmes are progressing well and will
result in a more sustainable business model
going forward. The DIY and building material
business has performed well, assisted by
its investment in its store network during
the past few years. The business is well-
positioned for continued growth in the large
building materials market.

Supply chain
The flexibility and efficiencies inherent in the
group's supply chain continue to underscore
the group's ability to deliver product to its
internal and external customer base. During
the year under review, dollar strength had
a positive impact on the competitiveness
of its European manufacturing operations.
Increased volumes and an improved product
mix improved efficiencies and margins.

The Asian sourcing operations performed
well, reducing quality-related returns to
record low levels and improving on-time
deliveries, resulting in reduced costs across
the business.

The specialist central logistics department
supports group operations in managing
the logistics performance and reducing
associated costs in many territories during
the year. In particular, optimisation of
warehousing facilities has supported margin
improvement in the group.

The group secured double digit savings
in ocean freight costs by aggregating
container volume of 88 000 containers.

Properties
The group continued its investment in
its property portfolio during the year
under review. These investments remain
a key strategic component in securing a
relevant infrastructure and store network
for its household goods retail business
while protecting the long-term cost base
of the business. In support of the rapid
growth experienced in Spain and Portugal,
the group acquired two large stores in
Portugal from a key competitor in this area.

Integrated retail: General merchandise
As is highlighted in the corporate activity
section of this announcement, the Pepkor
acquisition became effective 31 March 2015
and consequently the results for three months
are consolidated in this set of results.

Africa
The trading environment in Africa remained
challenging during the year under review.
Despite this, the group performed well,
increasing market share in the Clothing,
Footwear and Home (CFH) product segment
and through the introduction of a broader and
well-supported product range.

Southeast Asia
The group experienced good turnover
growth in Australia, supported by like-for-
like sales growth, particularly in the two
main retail brands. Margins remained under
pressure, impacted by the newly acquired
New Zealand business.

Eastern Europe
Strong sales growth and improved margins
were realised in the eastern European
retail cluster. During the year the eastern
European division expanded its operations
outside of Poland with more than 10% of
sales now being contributed by territories
other than Poland. New store performance
was very strong in all territories, particularly
in Romania and Hungary.

Integrated retail: Automotive
The automotive retail business achieved
revenue growth of 6% to R18 billion
(FY2014: R17 billion), while operating
profit increased to R536 million (FY2014:
R512 million).

The pre-owned vehicle division performed
relatively well, with a strong contribution from
parts and services. In contrast, the new vehicle
market was under pressure during the year
under review, adversely impacting margins.

Hertz achieved good volume growth, and
the focus on customer service, efficiencies
and cost control resulted in much improved
profitability in this division.

FINANCIAL REVIEW

These are provisional audited results for the
year ended 30 June 2015.

Continuing operations

Revenue from continuing operations
increases 15% to R135 billion

Headline earnings from continuing operations 
increase 36% to R12.4 billion

The group delivered good trading results
for the year ended 30 June 2015, supported
by a growing discount retail environment.
Continuing efficiencies and cost savings
resulted in increased margins. While revenue
from continuing operations increased
by 15%, operating profit before capital items
increased by 21% to R15.3 billion (FY2014:
R12.6 billion), reflecting the increased
operating margin in the group.

Pepkor acquisition complete

Net asset value per share up 22% to R48.25

Net debt reduced 46% to R26 billion

The acquisition of the Pepkor group
expanded the group's retail exposure to the
growing discount market in Africa, Europe
and Southeast Asia. This acquisition was
successfully completed during the year under
review and consequently Pepkor's results for
three months are included in the results.

The weighted average number of ordinary
shares in issue increased to 2.7 billion, mainly
as a result of the foreign share placement
announced on 2 July 2014 and the Pepkor
acquisition. Despite this 38% increase,
diluted headline earnings per ordinary
share increased by 1% to 420.1 cps (FY2014:
416.7 cps). Net asset value per share
increased by 22% to R48.25 (FY2014: R39.46).

Net finance charges
Net finance charges reduced to
R1 838 million (FY2014: R1 998 million) in line
with the group's reduction in net debt arising
mainly from the foreign share placement
and rights offer of approximately R18 billion
undertaken in July 2014. The reduction
in net debt was partially offset by the
R15 billion cash consideration paid for Pepkor
on 31 March 2015. Notwithstanding this, a
net debt to equity ratio of 14.4%, a net debt:
EBITDA ratio of 1.5 times and an EBITDA:
interest cover ratio of 9.5 times were achieved.

Taxation
The effective tax rate of the group, calculated
pre-capital items and associate income, is
10.2%. The group still expects that the
effective tax rate will not exceed 15% for the
foreseeable future.

Cash flow
Cash generated from continuing and
discontinued operations increased by 15%
to R26.7 billion (FY2014: R23.1 billion). In
terms of IFRS, the comparable year's cash
flow includes KAP as it was consolidated in
that year, but during the current year KAP
was accounted for as an equity investment.
After adjusting for this, cash generated from
operations increased by 26% to R26.7 billion
(FY2014: R21.3 billion).

Despite the group's higher activity levels,
inclusive of the results of Pepkor for three
months of the year under review, working
capital management remained solid. The
group's supplier consolidation strategy
and resultant increased buying power,
accompanied by the further optimisation of
and visibility in its supply chain, resulted in a
reduction in inventories and more favourable
terms obtained from suppliers.

Cash generated from continuing operations
represents 150% (FY2014: 130%) of EBITDA,
which demonstrates the group's quality of
earnings and cash generation capacity.

Net debt
Net debt reduced 46% to R26 billion
(FY2014: R48 billion). As at 30 June 2015,
the group had cash resources and unutilised
facilities amounting to R67 billion (FY2014:
R36 billion) available for its continuing
operations. Accordingly, the board is satisfied
that the group is well-capitalised to fund its
continued growth going forward.

Goodwill and intangible assets
Goodwill and intangible assets increased to
R135 billion (FY2014: R66 billion) mainly as a
result of the IFRS3 purchase price allocation
in respect of the Pepkor acquisition. Goodwill
attributable to the acquisition at the offer
price of R57 per share was R45.2 billion.
The increase in the Steinhoff share price
between the offer price and the accounting
recognition date gave rise to additional
goodwill of R8.9 billion.

Discontinued operations
During the 2014 year, JD Group accepted
an offer from RCS Cards (Proprietary) Limited
to dispose (subject to conditions precedent)
JD Group's Financial Services division. The
sale has not yet been implemented on
30 June 2015 and accordingly JD Group's
Financial Services division is shown as
discontinued operations in the results for
both years presented.

OUTLOOK
The group continues to benefit from the growth
experienced within the value and discount
market segments, despite the challenging
and volatile global consumer environment. It
remains competitive on price, owing to its well-
established supply chain which is continuing
to provide price advantages, supported by the
existing infrastructure.

Management will continue to focus on market
share gains and unlocking synergies on
recent investments.

The group remains committed to grow the
household and general merchandise retail
business by continuing to focus on organic
growth and expansion in its existing retail
businesses and expanding proven retail
concepts into new territories.

The planned Frankfurt listing is expected to
enhance the group's access to a wider pool
of global capital markets, on terms which are
better reflective of its spread of activities and
revenues.

No significant events, other than those
highlighted in the corporate activity section,
have occurred in the period between the
reporting date and the date of this report.

Corporate activity
The following corporate actions during,
or shortly after the end of the year under
review, were concluded by the group:

On 31 March 2015, it was announced
that the acquisition by Steinhoff of
Pepkor became wholly unconditional.
Having completed the implementation
and funding of the Pepkor transaction,
Steinhoff now owns 100% of Pepkor.

Following the Moody's international
rating upgrade to Baa3 long term issuer
rating (stable outlook) and national scale
issuer rating A3.za, the group successfully
diversified its funding profile with an
inaugural Schuldschein transaction in
Europe. The Schuldschein transaction
attracted more than 80 investors raising
EUR650 million with maturities of 5 to 10 years.
Funding rates ranged from Euribor plus
1.25% (fixed 1.88%) for the 5-year notes,
Euribor plus 1.50% (fixed 2.46%) for the
7-year notes and a fixed rate of 3.08% for
the 10-year notes. Subsequent to year-
end further notes were issued, increasing
the amount raised to EUR730 million and
also adding a 6-year note at Euribor plus
1.35%. The transaction marked the biggest
non-German Schuldschein issue for the
year to date. Strong geographic investor
diversification was achieved across European
and Australasian investors. In addition, the
group concluded the successful private
placement of R1.5 billion, 3 and 5 year fixed
and floating notes under the Steinhoff
Services Bond Programme.

During the year under review the
EUR390 million convertible bond due
2016 was substantially converted
into Steinhoff shares and the balance
redeemed. In addition, during the year
under review and up to and including
4 September 2015, the company received
optional conversion notices in respect
of EUR350.1 million of the EUR417 million
convertible bond due 2017. As a result,
111.8 million new Steinhoff shares were
issued to bondholders in settlement of
the amount redeemed. 21.4 million of the
Steinhoff shares reserved in respect of
the 2017 bond, remain outstanding.

On 30 July 2015, Steinhoff Finance GmbH,
a wholly-owned subsidiary of Steinhoff,
launched a convertible bond due 2022 in
respect of 150 million underlying Steinhoff
shares (2022 convertible bond). The 2022
convertible bond was oversubscribed
and priced at a coupon of 1.25% p.a.
payable semi-annually in arrears and at
a conversion premium to the underlying
Steinhoff share price on the JSE from
launch to pricing, of 35% equating to
a conversion price of R103 per share.
Following closing of the 2022 convertible
bond on 11 August 2015, Steinhoff
Finance raised an amount of EUR1.1 billion
before expenses, which will be used for
share re-purchases from time to time, and
general corporate purposes.

The JD scheme of arrangement
was approved by shareholders on
12 June 2015. In this regard, on
6 July 2015 Steinhoff acquired the
remaining shares in JD Group not
already held in terms of a scheme of
arrangement, for a cash consideration
of R34 per JD Group share, equating to
a total consideration of approximately
R1.1 billion, following which JD Group
was de-listed from the JSE.

In order to obtain long-term exposure
to the underlying investments
held in the PSG Group, Steinhoff
increased its investment in PSG to an
associate investment by increasing its
shareholding to 27%.

On 23 July 2015, Iliad announced
Steinhoff's firm intention to extend
an offer, to the shareholders of Iliad
in terms of a scheme of arrangement
for the acquisition of the entire issued
share capital of Iliad for cash at R10 per
Iliad share (scheme), equating to a
total consideration of approximately
R1.3 billion. The circular, including
the notice of the meeting relating to
the scheme, was despatched to Iliad
shareholders on 28 August 2015 and the
meeting at which Iliad shareholders will
vote on the scheme, is scheduled to be
held on 29 September 2015.

As announced on 7 September 2015,
shareholders approved all resolutions
required to implement the Steinhoff
scheme of arrangement, details of which
were contained in the Scheme Circular
and Prospectus sent to shareholders
on 7 August 2015 (Scheme Circular).
Shareholders holding 87.04% of the
issued share capital of Steinhoff and
being entitled to vote, were present or
represented at the general meeting
held on 7 September 2015. The relevant
resolutions relating to the listing of
Genesis International Holdings NV on
the Prime Standard of the Frankfurt Stock
Exchange and inward secondary listing on
the JSE were each approved by majorities
of 89.18% respectively. Salient dates and
the remaining conditions precedent,
are included in the Scheme Circular
and Prospectus which are available
on the company's corporate website.
Furthermore, shareholders also approved
the specific buy-back resolution to acquire
up to 190 million Steinhoff shares as set
out in the Scheme Circular.

Dividend declaration
The board has approved and declared a dividend from retained earnings of 165 cents per share. Shareholders will,
however, be entitled to elect to receive a capitalisation issue alternative (the Capitalisation Issue Alternative). If no
election is made a cash dividend will be paid (Cash Dividend).

The terms of the Capitalisation Issue Alternative will be announced on Wednesday, 21 October 2015 and
documentation relating thereto will be posted by Friday, 23 October 2015. Elections in respect of the Capitalisation
Issue Alternative will close on Friday, 13 November 2015 at 12:00.

Shareholders are required to notify their duly appointed participant or broker of their election in terms of the
Capitalisation Issue Alternative. For the avoidance of doubt, if no action is taken by shareholders, they will receive
the Cash Dividend.

The Cash Dividend and Capitalisation Issue Alternative for the year ended 30 June 2015 will be paid or issued to
shareholders registered as such in Steinhoff's share register at the close of business on Friday, 13 November 2015
(the Record Date).

The last day to trade in Steinhoff shares on the JSE in order to ensure that the purchaser appears as a shareholder
on the Record Date will be Friday, 6 November 2015. Shares will commence trading ex-entitlement with the
commencement of trade on Monday, 9 November 2015. The cash dividend payment date or capitalisation issue
date, as the case may be, will be Monday, 16 November 2015.

Salient dates and times                                                                                           2015
Record date in order to receive the election circular                                               Friday, 16 October
Finalisation announcement confirming ratio of entitlement and issue price of shares
for Capitalisation Issue Alternative on SENS                                                     Wednesday, 21 October
Circular and form of election (where applicable) posted to shareholders                             Friday, 23 October
Last day to trade in order to be eligible for Cash Dividend/Capitalisation Issue Alternative        Friday, 6 November
Shares trade ex-entitlement                                                                         Monday, 9 November
Provisional listing of maximum number of shares for the Capitalisation Issue Alternative at
commencement of trade on the JSE Limited                                                            Monday, 9 November
Last day to elect to receive Capitalisation Issue Alternative by 12:00                             Friday, 13 November
Record date                                                                                        Friday, 13 November
Payment date or issue date                                                                         Monday, 16 November
Announcement of the results of the Cash Dividend or Capitalisation Issue Alternative on SENS       Monday, 16 November
Adjustment of number of new shares listed on or about                                             Tuesday, 17 November

Share certificates may not be dematerialised or rematerialised between Monday, 9 November 2015 and Friday, 13 November 2015 (both days inclusive).

The Cash Dividend will be payable in the currency of South Africa. The Cash Dividend is subject to a local dividend
tax rate of 15%, resulting in a net Cash Dividend of 140.25 cents per share, unless the relevant shareholder is
exempt from dividend tax or is entitled to a reduced rate in terms of the applicable double tax agreement. The
company's income tax reference number is 9599003713. At the date of declaration of the Dividend the company had
3 698 687 876 ordinary shares in issue.

The Capitalisation Issue Alternative is not subject to dividend tax. However, there are possible tax implications of
electing to receive shares under the Capitalisation Issue Alternative and shareholders are advised to obtain their own
professional advice in this regard.

Steinhoff Africa Secretarial Services Proprietary Limited
Company secretary
8 September 2015

Notes
(1) The cash flow has been re-presented to combine the secured and unsecured instalment sales receivables movement,
    previously disclosed separately under working capital and cash flows from operating activities. Additions to vehicle
    rental fleet which are financed through finance leases are now excluded from working capital movements as non-cash
    items. Transactions with non-controlling interests and treasury shares have been reclassified from investing activities to
    financing activities.

    The segments have been re-represented in order to reflect the new group structure.

Notice
The preparation of these summarised financial statements was supervised by the financial director Frikkie (FJ) Nel CA(SA).

Summarised consolidated income statement
                                                                      Year       Year
                                                                     ended      ended
                                                                   30 June    30 June
                                                                      2015       2014
                                                                   Audited    Audited          %
                                                                        Rm         Rm     change
Continuing operations
Revenue                                                            134 868    117 364         15
Operating profit before depreciation, amortisation
and capital items                                                   17 537     14 638         20
Depreciation and amortisation                                      (2 222)    (2 016)
Operating profit before capital items                               15 315     12 622         21
Capital items                                                        2 513      1 500
Earnings before finance charges, dividend income, equity
accounted earnings and taxation                                     17 828     14 122         26
Net finance charges                                                (1 838)    (1 998)
Dividend income                                                         79          3
Share of profit of equity accounted companies                          569        290
Profit before taxation                                              16 638     12 417         34
Taxation                                                           (1 343)    (1 954)
Profit for the year from continuing operations                      15 295     10 463         46
Loss for the year from discontinued operations                     (2 140)      (600)
Profit for the year                                                 13 155      9 863         33
Attributable to:
Owners of the parent                                                13 383     10 090         33
Non-controlling interests                                            (228)      (227)
Profit for the year                                                 13 155      9 863         33
From continuing operations
Headline earnings per ordinary share (cents)                         453.7      461.7        (2)
Diluted headline earnings per ordinary share (cents)                 420.1      416.7          1
Basic earnings per ordinary share (cents)                            546.3      510.2          7
Diluted earnings per ordinary share (cents)                          498.3      455.2          9
From continuing and discontinued operations
Headline earnings per ordinary share (cents)                         393.8      443.5       (11)
Diluted headline earnings per ordinary share (cents)                 369.4      402.0        (8)
Basic earnings per ordinary share (cents)                            479.7      496.8        (3)
Diluted earnings per ordinary share (cents)                          442.0      444.3        (1)
Number of ordinary shares in issue (m)                               3 652      2 100         74
Weighted average number of ordinary shares in issue (m)              2 737      1 977         38
Continuing earnings attributable to ordinary shareholders (Rm)      14 950     10 086         48
Continuing headline earnings attributable to ordinary
shareholders (Rm)                                                   12 418      9 128         36
Dividend per ordinary share (cents)                                    165        150         10
Average currency translation rate (rand:euro)                      13.7347    14.1106        (3)

Summarised consolidated statement of cash flows
                                                                                Year        Year
                                                                               ended       ended
                                                                             30 June     30 June
                                                                                2015        2014
                                                                             Audited  Audited(1)
                                                                                  Rm          Rm
Cash generated before working capital changes                                 18 890      19 039
Decrease/(increase) in inventories                                             1 133     (1 001)
Increase in vehicle rental fleet                                               (118)       (323)
Decrease in receivables                                                        1 773       2 430
Increase in payables                                                           5 028       3 001
Changes in working capital                                                     7 816       4 107
Cash generated from operations                                                26 706      23 146
Movement in instalment sale and loan receivables                               (218)     (1 753)
Net dividends paid                                                           (3 931)     (1 818)
Net finance charges                                                          (1 232)     (1 842)
Taxation paid                                                                (1 039)     (1 592)
Net cash inflow from operating activities                                     20 286      16 141
Net cash outflow from investing activities                                  (21 124)    (16 684)
Net cash inflow from financing activities                                     23 630       6 513
Net increase in cash and cash equivalents                                     22 792       5 970
Effects of exchange rate changes on cash and cash equivalents                (1 228)       1 122
Cash and cash equivalents at beginning of year                                16 341       9 249
Cash and cash equivalents at end of year                                      37 905      16 341


Summarised consolidated statement of financial position

                                                                               30 June   30 June
                                                                                  2015      2014
                                                                               Audited   Audited
                                                                                    Rm        Rm
ASSETS
Non-current assets
Goodwill and intangible assets                                                 135 072    66 116
Property, plant and equipment                                                   58 294    54 422
Investments in equity accounted companies                                       15 869     4 223
Investments and loans                                                            6 697    10 399
Deferred taxation assets                                                         2 682     1 390
Other long-term assets                                                             150        70
                                                                               218 764   136 620
Current assets
Inventories and vehicle rental fleet                                            26 394    18 455
Accounts receivable, investments and loans and other current assets             27 113    24 040
Cash and cash equivalents                                                       37 905    16 341
Assets held for sale                                                             3 364     6 865
                                                                                94 776    65 701
Total assets                                                                   313 540   202 321
EQUITY AND LIABILITIES
Capital and reserves
Ordinary stated share capital and reserves                                     176 201    82 854
Preference share capital                                                         4 882     3 381
                                                                               181 083    86 235
Non-controlling interests                                                        1 087     1 541
Total equity                                                                   182 170    87 776
Non-current liabilities
Interest-bearing long-term liabilities                                          56 344    55 580
Deferred taxation liabilities                                                   13 578    10 878
Other long-term liabilities and provisions                                       4 908     2 859
                                                                                74 830    69 317
Current liabilities
Accounts payable, provisions and other current liabilities                      48 831    36 185
Interest-bearing short-term liabilities                                          5 847     6 411
Bank overdrafts and short-term facilities                                        1 856     2 436
Liabilities held for sale                                                            6       196
                                                                                56 540    45 228
Total equity and liabilities                                                   313 540   202 321
Net asset value per ordinary share (cents)                                       4 825     3 946
Closing exchange rate (rand:euro)                                              13.5628   14.5721

Additional information

                                                               Continuing  Discontinued
                                                               operations    operations    Total
                                                                       Rm            Rm       Rm
30 June 2015
Earnings/(loss) attributable to owners of the parent               15 204       (1 821)   13 383
Dividend entitlement on cumulative preference shares                (254)             –    (254)
Earnings/(loss) attributable to ordinary shareholders              14 950       (1 821)   13 129
Capital items
Impairments/(reversal of impairments)                                 910          (80)      830
Loss on disposal of intangible assets and property,  
plant and equipment                                                   104             –      104
(Profit)/loss on disposal and dilution of investments             (3 527)           313  (3 214)
Total capital items                                               (2 513)           233  (2 280)
Taxation effects of capital items                                    (41)          (24)     (65)
Non-controlling interests' portion of capital items                   (9)          (28)     (37)
Capital items of equity accounted companies (net of taxation)          31             –       31
Headline earnings                                                  12 418       (1 640)   10 778
30 June 2014
Earnings/(loss) attributable to owners of the parent               10 355         (265)   10 090
Dividend entitlement on cumulative preference shares                (269)             –    (269)
Earnings/(loss) attributable to ordinary shareholders              10 086         (265)    9 821
Capital items
Impairments                                                            76            78      154
Loss on disposal of intangible assets                                  45             –       45
(Profit)/loss on disposal and dilution of investments             (1 651)           135  (1 516)
Other                                                                  30            10       40
Total capital items                                               (1 500)           223  (1 277)
Taxation effects of capital items                                     561         (251)      310
Non-controlling interests' portion of capital items                  (11)          (65)     (76)
Capital items of equity accounted companies (net of taxation)         (8)             –      (8)
Headline earnings                                                   9 128         (358)    8 770

Segmental analysis

                                                                       Year       Year
                                                                      ended      ended
                                                                    30 June    30 June
                                                                       2015       2014
                                                                    Audited    Audited         %
                                                                         Rm         Rm    change
Revenue – continuing operations
Integrated retail: Household goods                                  104 696    100 449         4
Integrated retail: General merchandise                               12 199          –         –
Integrated retail: Automotive                                        17 973     16 915         6
                                                                    134 868    117 364        15

Operating profit before capital items –
continuing operations
Integrated retail: Household goods                                   13 134     12 110         8
Integrated retail: General merchandise                                1 645          –         –
Integrated retail: Automotive                                           536        512         5
                                                                     15 315     12 622        21

                                                          30 June              30 June
                                                             2015                 2014
                                                          Audited         %    Audited         %
                                                               Rm     total         Rm     total
Segmental assets
Integrated retail: Household goods                        139 338        58    146 411        92
Integrated retail: General merchandise                     88 609        37          –         –
Integrated retail: Automotive                              12 853         5     12 154         8
                                                          240 800       100    158 565       100

Reconciliation of total assets per statement of financial position to segmental assets
 
                                                                            30 June      30 June
                                                                               2015         2014
                                                                            Audited      Audited
                                                                                 Rm           Rm
Total assets per statement of financial position                            313 540      202 321
Less: Cash and cash equivalents                                            (37 905)     (16 341)
Less: Investments in equity accounted companies                            (15 869)      (4 223)
Less: Long-term investments and loans                                       (6 697)     (10 399)
Less: Short-term investments and loans                                      (8 905)      (5 928)
Less: Assets of discontinued operations and assets held for sale            (3 364)      (6 865)
Segmental assets                                                            240 800      158 565

Geographical information
                                                           Year                   Year
                                                         ended                   ended
                                                       30 June                 30 June
                                                          2015                    2014
                                                       Audited         %       Audited         %
                                                            Rm     total            Rm     total
Revenue – continuing operations
Continental Europe                                      78 581        58        73 850        63
Africa                                                  39 899        30        30 572        26
Other                                                   16 388        12        12 942        11
                                                       134 868       100       117 364       100

                                                       30 June                 30 June
                                                          2015                    2014
                                                       Audited         %       Audited         %
                                                            Rm     total            Rm     total
Non-current assets
Continental Europe                                     118 828        54       106 627        78
Africa                                                  83 463        38        17 730        13
Other                                                   16 473         8        12 263         9
                                                       218 764       100       136 620       100

Pepkor acquisition
On 31 March 2015 Steinhoff acquired 92% of Pepkor Holdings (Proprietary) Limited.
The fair values of assets and liabilities acquired were as follows:
                                                                                              Rm
Assets                                                                                    25 462
Liabilities                                                                              (8 126)
Working capital                                                                            1 835
Existing non-controlling interests                                                           (9)
Total assets and liabilities acquired                                                     19 162
Less: Non-controlling interests' portion of assets and liabilities acquired              (1 468)
Group's share of total assets and liabilities acquired                                    17 694
Goodwill                                                                                  54 114
Total consideration paid                                                                  71 808

On 20 April 2015, the remaining 8% of Pepkor ordinary shares were acquired.

Fair values of financial instruments
                                                        Fair value    Fair value
                                                             as at         as at
                                                           30 June       30 June
                                                              2015          2014      Fair value
                                                                Rm            Rm       hierarchy
Investments and loans                                        1 749         3 769      Level 1(*)
Investments and loans                                          286           206      Level 2(#)
Derivative financial assets                                    401            13      Level 2(#)
Interest-bearing loans and borrowings                            –       (1 594)      Level 2(#)
Derivative financial liabilities                             (154)         (231)      Level 2(#)

(*) Valued using unadjusted quoted prices in active markets for identical financial instruments.
    This category includes listed shares and unit trusts.

(#) Valued using techniques where all of the inputs that have a significant effect on the valuation are directly or indirectly
    based on observable market data. These inputs include published interest rate yield curves and foreign exchange rates.

Summarised consolidated statement of comprehensive income
                                                                                        Year        Year
                                                                                       ended       ended
                                                                                     30 June     30 June
                                                                                        2015        2014
                                                                                     Audited     Audited
                                                                                          Rm          Rm
Profit for the year                                                                   13 155       9 863
Other comprehensive income/(loss)
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit plans                                                (174)       (145)
Deferred taxation                                                                         39          43
                                                                                       (135)       (102)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign subsidiaries                          (4 647)       5 959
Net value gain/(loss) on cash flow hedges and other fair value reserves
net of amounts recycled                                                                  228       (124)
Deferred taxation                                                                       (61)          32
Other comprehensive income of equity accounted companies, net of deferred taxation        12           1
                                                                                     (4 468)       5 868
Other comprehensive (loss)/income for the year                                       (4 603)       5 766
Total comprehensive income for the year                                                8 552      15 629
Total comprehensive income attributable to:
Owners of the parent                                                                   8 781      15 844
Non-controlling interests                                                              (229)       (215)
Total comprehensive income for the year                                                8 552      15 629

Summarised consolidated statement of changes in equity
                                                                                        Year        Year
                                                                                       ended       ended
                                                                                     30 June     30 June
                                                                                        2015        2014
                                                                                     Audited     Audited
                                                                                          Rm          Rm
Balance at beginning of the year                                                      87 776      66 768
Changes in ordinary stated share capital
Net shares issued                                                                     92 844      10 685
Net movement in treasury shares                                                          (6)          21
Changes in preference share capital
Net preference shares issued/(redeemed)                                                1 501       (496)
Net utilisation of treasury shares                                                         –         380
Changes in reserves
Total comprehensive income for the year attributable to owners of the parent           8 781      15 844
Equity portion of convertible bonds redeemed and issued net of deferred taxation       (369)         351
Ordinary dividends                                                                   (3 749)     (1 516)
Preference dividends                                                                   (332)       (152)
Share-based payments                                                                     558         431
Net shares bought from/sold to non-controlling interests                             (4 580)         228
Other reserve movements                                                                  200         346
Changes in non-controlling interests
Total comprehensive loss for the year attributable to non-controlling interests        (229)       (215)
Dividends and capital distributions paid                                                (48)       (208)
Net acquisitions and shares bought from/sold to non-controlling interests              (113)     (1 768)
Released on derecognition of subsidiary                                                    –     (2 814)
Other transactions with non-controlling interests                                       (64)       (109)
Balance at end of the year                                                           182 170      87 776
Comprising:
Ordinary stated share capital                                                        113 345      20 507
Preference share capital                                                               4 882       3 381
Distributable reserves                                                                56 106      46 637
Convertible and redeemable bonds reserve                                               1 061       1 430
Foreign currency translation reserve                                                   9 138      13 784
Share-based payment reserve                                                            1 569       1 011
Premiums or discounts on changes in non-controlling interests                        (4 842)       (262)
Other reserves                                                                         (176)       (253)
Non-controlling interests                                                              1 087       1 541
                                                                                     182 170      87 776
Selected explanatory notes

Statement of compliance
The summarised consolidated annual financial statements have been prepared and presented in accordance with
the framework concepts and the measurement and recognition requirements of International Financial Reporting
Standards (IFRS), the SAICA Financial Reporting Guide as issued by the Accounting Practices Committee and the
Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the information as
required by IAS 34 – Interim Financial Reporting, the Listing Requirements of the JSE Limited and the Companies
Act, 71 of 2008, as amended, of South Africa.

Basis of preparation
The summarised annual 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 certain
derivative financial instruments which are stated at their fair value.

Financial statements
The annual financial statements for the year have been audited by Deloitte & Touche and their accompanying
unmodified audit report as well as their unmodified audit report on this set of provisional summarised financial
information is available for inspection at the company's registered office. Any reference to future financial
information included in the summarised financial information has not been audited or reviewed. Full details of
the group's business combinations for the year, additions and disposals of property, plant and equipment as
well as commitments and contingent liabilities will be included in the group's consolidated financial statements.

Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's
engagement they should obtain a copy of their report with the accompanying financial information from the
company's registered office.

Accounting policies
The accounting policies of the group have been applied consistently to the years presented in the consolidated
financial statements, except for the adoption of:
IAS 36 – Impairment of Assets: Recoverable amount disclosures for non-financial assets
IAS 39 – Financial Instruments: Recognition and Measurement: Novation of derivatives and continuation of
hedge accounting
IFRIC 21 – Levies

The implementation and adoption of the various IASs and IFRICs did not result in any material changes to the
accounting policies.

Administration
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^,
CE Daun^*, HJK Ferreira, SJ Grobler, TLJ Guibert ^#, AB la Grange, MT Lategan^, JF Mouton^, FJ Nel, HJ Sonn^, 
BE Steinhoff^*, PDJ van den Bosch^†, DM van der Merwe, CH Wiese^ Alternate directors: JNS du Plessis,
KJ Grové, A Krüger-Steinhoff^*, M Nel †Belgian #French *German ^non-executive
Company secretary: Steinhoff Africa Secretarial Services Proprietary Limited 
Auditors: Deloitte & Touche Sponsor: PSG Capital Proprietary Limited
Transfer secretaries: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg 2001

www.steinhoffinternational.com

STEINHOFF INVESTMENT HOLDINGS LIMITED
(Steinhoff Investments)
Registration number: 1954/001893/06
(Incorporated in the Republic of South Africa)
JSE code: SHFF ISIN: ZAE000068367

Dividend to preference shareholders
Preference shareholders are referred to the above results of
Steinhoff for a full appreciation of the consolidated results and
financial position of Steinhoff Investments.

The board has declared a gross dividend of 378 cents per
preference share on 8 September 2015, in respect of the period
from 1 January 2015 to 30 June 2015 ("the dividend period"),
payable on Monday, 19 October 2015, to those preference
shareholders recorded in the books of the company at the close
of business on Friday, 16 October 2015.

The dividend will be payable in the currency of South Africa. The
dividend is subject to a local dividend tax rate of 15%, resulting in
a net dividend of 321.3 cents per share, unless the shareholder is
exempt from dividend tax or is entitled to a reduced rate in terms
of the applicable double tax agreement. The company's income
tax reference number is 9375046712. At the date of declaration
there were 15 000 000 preference shares in issue.

Dates                                                        2015
Last date to trade cum dividend                 Friday, 9 October
Shares trade ex dividend                       Monday, 12 October
Record date                                    Friday, 16 October
Payment date                                   Monday, 19 October

Share certificates may not be dematerialised or rematerialised
between Monday, 12 October 2015 and Friday, 16 October 2015,
both days inclusive.

On behalf of the board of directors

Len Konar                  Piet Ferreira
Non-executive director     Executive director

8 September 2015

Date: 08/09/2015 02:00:00 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.

Share This Story