STEINHOFF RECORDS STRONG GROWTH FOR THE SIX MONTHS TO 31 DECEMBER 2003

STEINHOFF RECORDS STRONG GROWTH FOR THE SIX MONTHS TO 31 DECEMBER 2003          
PRESS RELEASE                                                                   
STEINHOFF RECORDS STRONG GROWTH FOR THE SIX MONTHS TO 31 DECEMBER 2003          
2 March 2004                                                                    
Steinhoff International Holdings Limited ("Steinhoff" or "the Group") today     
reported pleasing results for the six months ending 31 December 2003 reflecting 
the expansion of its operations, especially in Europe and Australasia. Steinhoff
is an integrated global lifestyle supplier focused on manufacturing, wholesale  
and distribution of furniture and household goods, with interests in Southern   
Africa, the European Community, Eastern Europe, Australia and New Zealand.      
Markus Jooste, chief executive officer of Steinhoff, said: "We are extremely    
pleased with the Group"s results. Steinhoff is an international player with some
of the world"s best furniture manufacturing assets and the sustainability of our
strategy is proven by the continued increase in both volumes and margins."      
Including exports from Southern Africa the Group generated 81% of its revenues  
in foreign currency, with only 19% of revenues derived in rands. As a JSE       
Securities Exchange listed company the Group is obliged to report in rands,     
however, the Board is considering dual reporting in euros as this more          
accurately reflects Steinhoff"s achievements.                                   
Revenue increased by 22% to EUR657 million (2002: EUR538 million) and headline  
earnings increased by 30% to EUR64 million (2002: EUR49 million). The average   
Group operating margin improved to 11,1% (2002: 9,5%).                          
In rands, revenue increased by 2% to R5,4 billion (2002: R5,3 billion) and      
headline earnings increased by 8% to R528,7 million (2002: R487,5 million).     
Headline earnings per share increased to 53 cents (2002: 52 cents).  The average
conversion rate used was R8.2051: EUR1 (2002: R9.85 : EUR1).                    
The European region achieved remarkable growth given the current difficult      
trading conditions in Europe. Revenues increased by 32% in euro, whilst         
operating profit increased by an impressive 59% as margins widened from 10.6% to
12.8%. This was mainly attributable to favourable currency movements,           
particularly the weakness of the US dollar and zloty against the euro, as well  
as improved operating efficiencies within the Group.                            
The Southern African region increased operating profit by 37% and 8% in euro and
rand terms respectively. Steinhoff Africa improved its margin from 5.9% to 6.3% 
(excluding associates). Steinhoff also recorded margin expansion in Eastern     
Europe and Australasia.                                                         
Net debt declined from R1.5 billion to R390 million, resulting in a decline in  
gearing to 6% (2002: 33%). The decline is in part due to the recent             
international equity offering of R1 billion, which places Steinhoff in a        
favourable position to expand its operations in a highly fragmented furniture   
market. Cash generated by operations increased by 98% to R478,0 million (2002:  
R241,2 million), benefiting from sound working capital management and a quality 
customer base.                                                                  
Steinhoff"s sustainability is further endorsed by the support received from the 
international investment community. Since the international equity offering the 
share price has risen 33% and 27% in rand and euro terms respectively.          
Liquidity has also improved to the extent that Steinhoff has been included in   
the MSCI emerging market indices for the first time.                            
Jooste added: "Steinhoff with its strategy of combining low cost manufacturing  
and product sourcing, coupled with the outsourcing of non-core product ranges,  
is well positioned for continued growth. Our balance sheet is strong, we are    
generating cash, are in a position to focus on organic growth and have the      
ability to consider appropriate acquisitive growth opportunities."              
Steinhoff is positive about its prospects. Increased exports to Europe,         
particularly from the mail order market served by the Polish operations, bode   
well for export growth from the expanded manufacturing base in Poland, Hungary  
and the Ukraine. Furthermore, the addition of complementary products and brands 
are expected to increase the Group"s market share. In South Africa, Steinhoff   
will make further investments in raw material production facilities to ensure   
long-term sources of supply, particularly in sawmilling and timber resources.   
The Group anticipates growth in headline earnings for the remainder of the year.
- ends -                                                                        
For further information, please contact:                                        
Markus Jooste, Steinhoff                                                        
Tel: 011 445 3050                                                               
Jessica Yellin, Magna Carta                                                     
Tel: 011 784 2598                                                               
Date: 02/03/2004 08:44:35 AM Supplied by www.sharenet.co.za                     
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