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STEINHOFF INTERNATIONAL HOLDINGS LTD
REGISTRATION NUMBER 98/03951/06
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
AN INTEGRATED GLOBAL LIFESTYLE SUPPLIER THAT MANUFACTURES, WAREHOUSES AND
DISTRIBUTES HOUSEHOLD GOODS
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
UNAUDITED PRO FORMA AUDITED
SIX MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED ENDED
31 DEC 31 DEC 30 JUNE
1999 1998 1999
NOTE 1 %
R'000 R'000 CHANGE R'000
REVENUE 2 551 872 1 422 511 79 2 757 491
OPERATING INCOME
BEFORE DEPRECIATION 274 421 121 746 125 265 687
DEPRECIATION (43 296) (24 967) 73 (49 099)
OPERATING INCOME
BEFORE FINANCE COSTS 231 125 96 779 139 216 588
NET FINANCE CHARGES (25 026) (13 348) 87 (26 565)
NET INCOME BEFORE
TAXATION 206 099 83 431 147 190 023
TAXATION (10 802) (9 295) 16 (8 182)
NET INCOME AFTER
TAXATION 195 297 74 136 163 181 841
SHARE OF ASSOCIATED
COMPANIES' RETAINED
INCOME (952) 3 345 2 195
ATTRIBUTABLE TO OUTSIDE
SHAREHOLDERS 30 (595) (1 421)
INCOME ATTRIBUTABLE
TO SHAREHOLDERS 194 375 76 886 153 182 615
DIVIDEND - - - 9 590
NUMBER OF SHARES
IN ISSUE ('000) 783,237 653,000 773,392
WEIGHTED AVERAGE
NUMBER OF SHARES
IN ISSUE ('000) 776 549 650 516 662,839
ATTRIBUTABLE
INCOME (R'000) 194,375 76,886 182,615
HEADLINE EARNINGS
(R'000) 194,375 76,886 182,615
EARNINGS PER SHARE
(CENTS) 25,0 11,8 112 27,6
HEADLINE EARNINGS
PER SHARE (CENTS) 25,0 11,8 112 27,6
DIVIDENDS PER SHARE
(CENTS) - - 6,2
NOTE 1: COMPARATIVES ARE BASED ON FIGURES EXTRACTED FROM THE INTERIM REPORT
DATED 2 MARCH 1999 FOR THE FOUR MONTHS ENDED 31 DECEMBER 1998, AND MANAGEMENT
ACCOUNTS FOR JULY 1998 AND AUGUST 1998 PRIOR TO THE COMPANY BEING LISTED.
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 1999
UNAUDITED UNAUDITED AUDITED
31 DEC 31 DEC 30 JUNE
1999 1998 1999
R'000 R'000 R'000
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS'
INTEREST 1 837 027 1 231 513 1 670 140
OUTSIDE SHAREHOLDERS'
INTEREST 17 377 10 660 17 336
DEFERRED TAXATION 7 280 2 961 8 096
LONG-TERM LIABILITIES 200 337 111 344 117 253
2 062 021 1 356 478 1 812 825
EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 543 168 900 301 1 297 231
INVESTMENTS AND LOANS 54 231 141 217 45 664
CURRENT ASSETS 1 868 389 900 660 1 545 734
TOTAL ASSETS 3 465 788 1 942 178 2 888 629
CURRENT LIABILITIES 1 403 767 585 700 1 075 804
- NET INTEREST BEARING 382 317 121 133 231 181
- OTHER 1 021 450 464 567 844 623
2 062 021 1 356 478 1 812 825
NUMBER OF SHARES IN
ISSUE ('000) 783 237 653 000 773 392
TANGIBLE NET ASSET VALUE
PER SHARE (CENTS) 235 189 216
GEARING RATIO (NET) (%) 32 19 21
ABRIDGED GROUP CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
UNAUDITED AUDITED
SIX MONTHS TEN MONTHS
ENDED ENDED
31 DEC 30 JUNE
1999 1999
R'000 R'000
OPERATING PROFIT BEFORE WORKING
CAPITAL CHANGES 259 657 226 563
NET CHANGES IN WORKING CAPITAL (129 727) (151 819)
CASH GENERATED FROM OPERATIONS 129 930 74 744
NET FINANCE COSTS (25 026) (26 565)
DIVIDENDS PAID (8 472) -
TAXATION (14 475) 33
NET CASH INFLOW FROM OPERATING
ACTIVITIES 81 957 48 212
NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (320 157) (493 407)
NET CASH INFLOW FROM FINANCING
ACTIVITIES 324 642 646 332
NET INCREASE IN CASH AND CASH
EQUIVALENTS 86 442 201 137
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH AND
CASH EQUIVALENTS 9 335 (63 237)
CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD 137 900 -
CASH AND CASH EQUIVALENTS -
END OF PERIOD 233 677 137 900
THE COMPARATIVE AMOUNTS PRESENTED ARE FOR THE FIRST PERIOD OF TRADING AND
REPORTING AS A LISTED COMPANY.
COMMENTS
RESULTS
GROUP REVENUE GREW 79% COMPARED TO THE CORRESPONDING PERIOD. THIS SIGNIFICANT
GROWTH WAS ACHIEVED DUE TO THE SMOOTH INTEGRATION OF THE CORNICK/AFCOL
ACQUISITION IN AFRICA, KLOSE IN GERMANY AND NEW PRODUCTION FACILITIES IN
POLAND. OPERATING INCOME BEFORE FINANCE COSTS INCREASED BY 139% TO R231,125
MILLION (1998: R96,779 MILLION). OPERATING MARGIN IMPROVED TO 9% FOR THE PERIOD
UNDER REVIEW. THE GROUP'S STATED TARGET OF 10% WITHIN THREE YEARS FROM THE TIME
OF LISTING WILL BE ACHIEVED SHORTLY. FINANCE CHARGES INCREASED BY R11,678
MILLION TO FUND THE INCREASED TURNOVER AND ACQUISITIONS IN EUROPE. FOREIGN
LONG-TERM DEBT HAS BEEN RAISED IN DEUTSCHE MARKS AT VERY FAVOURABLE INTEREST
RATES.
INCOME ATTRIBUTABLE TO SHAREHOLDERS INCREASED BY 153% TO R194,375 MILLION
(1998: R76,886 MILLION). THE RELATIVELY LOW TAX CHARGE IS DUE MAINLY TO THE
GROUP'S FAVOURABLE TAX DISPENSATIONS PREVAILING IN CENTRAL EUROPE. IT IS
ANTICIPATED THAT THE EFFECTIVE TAX RATE WILL NOT CHANGE MATERIALLY IN THE
FORESEEABLE FUTURE.
EARNINGS PER SHARE AND HEADLINE EARNINGS PER SHARE INCREASED BY A PLEASING 112%
TO 25 CENTS PER SHARE.
REVIEW OF OPERATIONS
THE RATIONALISATION OF STEINHOFF AFRICA'S BUSINESS UNITS WITH THOSE OF
CORNICK/AFCOL HAVE BEEN SUCCESSFULLY INTEGRATED. STEINHOFF AFRICA IS NOW
STRUCTURED INTO FOUR FOCUSED DIVISIONS, NAMELY LOCAL FURNITURE, EXPORTS, RAW
MATERIALS AND LOGISTICS.
R'000 R'000 R'000
FOREIGN AFRICA TOTAL
REVENUE 1 276 749 1 275 123 2 551 872
PERCENTAGE 50 50 100
ATTRIBUTABLE EARNINGS 101 112 93 263 194 375
PERCENTAGE 52 48 100
AN AVERAGE EXCHANGE RATE OF R3,26: 1DM (1998: R3,59: 1DM) WAS USED TO TRANSLATE
FOREIGN CURRENCY AMOUNTS INTO LOCAL CURRENCY.
R236 MILLION (1998: R88 MILLION) OF AFRICA'S TURNOVER WAS EXPORTED TO EUROPE
AND THE USA APPROXIMATING 20% OF ITS ACTIVITIES. IT IS THE GROUP'S OBJECTIVE TO
GROW THESE EXPORTS TO AT LEAST 30% DURING THE NEXT 12 MONTHS.
YEAR 2000 COMPLIANCE
THE Y2K PROJECT WAS SUCCESSFULLY CONCLUDED BY AN UNEVENTFUL TRANSITION INTO THE
YEAR 2000.
DIVIDEND
IT IS THE GROUP'S POLICY TO DECLARE DIVIDENDS ONCE A YEAR, AFTER ITS FINANCIAL
YEAR-END AT 30 JUNE.
PROSPECTS
THE GROUP WILL CONTINUE TO GROW ITS MARKET SHARE IN A HIGHLY FRAGMENTED
EUROPEAN FURNITURE MARKET. IT IS ALSO OUR INTENTION TO GROW OUR MARKET SHARE IN
ENGLAND AND AUSTRALIA.
WE ARE NEGOTIATING THE POSSIBLE FORMATION OF A STRATEGIC ALLIANCE WITH A
SIGNIFICANT INTERNATIONAL IT PARTNER. THIS, TOGETHER WITH THE PLANNED EXPANSION
OF OUR CURRENT LOGISTICS GROUP, WILL POSITION OURSELVES AS A FORCE IN THE
E-COMMERCE FIELD AND FULFILMENT OF HOUSEHOLD GOODS WORLDWIDE.
MANAGEMENT IS CONFIDENT THAT THE GROUP WILL CONTINUE TO ACHIEVE ABOVE-AVERAGE
EARNINGS GROWTH IN THE SECOND HALF OF THE YEAR.
BY ORDER OF THE BOARD
S J GROBLER
COMPANY SECRETARY
7 MARCH 2000
REGISTERED OFFICE
28 6TH STREET, WYNBERG, 2018 TEL (011) 445 3000 FAX (011) 445 3135
TRANSFER SECRETARIES
MERCANTILE REGISTRARS LIMITED, FIRST NATIONAL HOUSE, 11 DIAGONAL STREET,
JOHANNESBURG, 2001
DIRECTORS
BRUNO STEINHOFF*# (EXECUTIVE CHAIRMAN), DIRK ACKERMAN, CLAAS DAUN#, MARKUS
JOOSTE*, LEN KONAR, FRIKKIE NEL*, NORBERT STEINHOFF*#, DANIE VAN DER MERWE*
*EXECUTIVE DIRECTOR #GERMAN CITIZEN
COMPANY SECRETARY
S J GROBLER