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SHF - Steinhoff International Holdings - Audited financial results for the year

Release Date: 08/09/2009 14:07
Code(s): SHF
Wrap Text

SHF - Steinhoff International Holdings - Audited financial results for the year ended 30 June 2009 STEINHOFF INTERNATIONAL HOLDINGS LIMITED (Steinhoff or the company or the group) Registration number: 1998/003951/06 (Incorporated in the Republic of South Africa) JSE share code: SHF ISIN code: ZAE000016176 AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009 Geographical diversity, mass-market positioning of retail activities, manufacturing and sourcing scale support solid results. Highlights Revenue growth of 13% to R50.9 billion Headline earnings exceeds R3.2 billion Distribution per share maintained at 60 cents Net gearing ratio improves to 35% Continues investment in infrastructure and retail participation to secure future growth Condensed consolidated income statement Audited Audited Year ended Year ended
30 June 2009 30 June 2008 % Notes R `000 R`000 change Revenue 50 868 641 45 045 885 13 Operating profit before depreciation and capital items 6 127 483 5 492 166 12 Depreciation (974 714) (830 553) Operating profit before capital items 5 152 769 4 661 613 11 Capital items 1 49 295 (192 890) Earnings before interest, dividend income, associate earnings and taxation 5 202 064 4 468 723 16 Net finance charges (1 000 451) (704 637) Dividend income 598 584 Earnings before associate earnings and taxation 4 202 211 3 764 670 12 Share of profit of associate companies 6 527 37 071 Profit before taxation 4 208 738 3 801 741 11 Taxation (581 254) (366 133) Profit for the year 3 627 484 3 435 608 6 Attributable to: Equity holders of the parent 3 378 878 3 310 037 2 Minority interest 248 606 125 571 Profit for the year 3 627 484 3 435 608 6 Headline earnings per ordinary share (cents) 252.9 263.5 (4) Fully diluted headline earnings per ordinary share (cents) 243.0 251.4 (3) Basic earnings per ordinary share (cents) 256.1 249.8 3 Fully diluted earnings per ordinary share (cents) 245.8 238.8 3 Number of ordinary shares in issue (`000) 1 280 346 1 268 743 1 Weighted average number of ordinary shares in issue (`000) 1 275 841 1 280 541 - Earnings attributable to ordinary shareholders (R`000) 2 3 267 432 3 199 039 2 Headline earnings attributable to ordinary shareholders (R`000) 3 3 226 282 3 374 761 (4) Distribution per ordinary share (cents) 60 60 - Average currency translation rate (rand:euro) 12.3503 10.7631 15 Additional information Audited Audited Year ended Year ended 30 June 2009 30 June 2008
R`000 R`000 Note 1: Capital items Foreign currency translation reserve released on disposal of subsidiary 4 776 - Gain on sale of investments 657 - Goodwill adjustments - (15 581) Impairments (11 414) (166 314) Loss on scrapping of rental fleet vehicles (6 088) (7 650) Profit/(loss) on disposal of property, plant and equipment 42 756 (14 416) Loss on disposal of intangible asset (4) - Negative goodwill released on business combination - 8 723 Profit on disposal of investment property 18 612 2 348 49 295 (192 890) Note 2: Earnings attributable to ordinary shareholders Earnings attributable to equity holders 3 378 878 3 310 037 Dividend entitlement on non-redeemable cumulative preference shares (111 446) (110 998) 3 267 432 3 199 039 Note 3: Headline earnings attributable to ordinary shareholders Earnings attributable to equity holders 3 378 878 3 310 037 Adjusted for: Capital items (note 1) (49 295) 192 890 Taxation effects of capital items 1 127 (17 231) Remeasurements included in equity-accounted earnings of associate companies 7 018 63 Dividend entitlement on non-redeemable cumulative preference shares (111 446) (110 998) Headline earnings for the year attributable to ordinary shareholders 3 226 282 3 374 761 Condensed consolidated balance sheet Audited Audited 30 June 2009 30 June 2008
R`000 R`000 Assets Non-current assets Property, plant and equipment, investment properties and biological assets 11 277 031 11 288 468 Intangible assets and goodwill 18 875 328 21 226 595 Investments and loans 2 368 077 1 278 679 Investments in associate companies 3 004 766 2 457 992 Deferred taxation assets 1 101 321 1 390 020 36 626 523 37 641 754 Current assets Accounts receivable, short-term loans and other current assets 9 167 743 8 725 726 Inventories 4 756 962 5 553 033 Cash and cash equivalents 4 736 197 4 995 231 18 660 902 19 273 990
Total assets 55 287 425 56 915 744 Equity and liabilities Capital and reserves Ordinary share capital and reserves 21 021 321 20 772 947 Preference share capital 1 042 474 1 042 474 22 063 795 21 815 421 Minority interest 2 859 958 2 968 732 Total equity 24 923 753 24 784 153 Non-current liabilities Deferred taxation liabilities 3 020 423 3 203 448 Interest-bearing long-term liabilities 12 703 880 12 684 508 Other long-term liabilities and provisions 963 441 1 414 066 16 687 744 17 302 022 Current liabilities Interest-bearing short-term liabilities 5 178 447 3 912 494 Accounts payable, provisions and other current liabilities 8 497 481 10 917 075 13 675 928 14 829 569 Total equity and liabilities 55 287 425 56 915 744 Net asset value per ordinary share (cents) 1 642 1 637 Net gearing ratio (%) 35 38 Closing exchange rate (rand:euro) 10.8265 12.3341 Condensed consolidated statement of recognised income and expense Audited Audited Year ended Year ended 30 June 2009 30 June 2008 R`000 R`000
Actuarial losses recognised in equity (22 430) (13 137) Cash flow hedges recognised in equity (49 110) 15 219 Exchange differences on consolidation of foreign subsidiaries (2 583 131) 2 353 086 Fair value adjustments on available for sale financial assets 132 (3 157) Net (expense)/income recognised directly in equity (2 654 539) 2 352 011 Profit for the year 3 627 484 3 435 608 Total recognised income and expense for the year 972 945 5 787 619 Attributable to: Equity holders of the parent 1 106 807 5 021 490 Minority interest (133 862) 766 129 972 945 5 787 619 Condensed consolidated cash flow statement Audited Audited Year ended Year ended 30 June 2009 30 June 2008 R`000 R`000
Operating profit before working capital changes 5 871 185 5 386 962 Net changes in working capital - Decrease in inventory 540 857 43 330 - Increase in debtors (932 632) (129 193) - (Increase)/decrease in creditors (1 545 274) 183 753 Cash generated from operations 3 934 136 5 484 852 Net finance charges (884 199) (760 034) Dividends paid (157 258) (119 639) Dividends received 598 11 423 Taxation paid (309 110) (385 623) Net cash inflow from operating activities 2 584 167 4 230 979 Net cash outflow from investing activities (3 986 609) (5 943 036) Net cash inflow from financing activities 1 701 217 1 398 843 Net increase/(decrease) in cash and cash equivalents 298 775 (313 214) Effects of exchange rate changes on cash and cash equivalents (557 809) 243 458 Cash and cash equivalents at beginning of year 4 995 231 5 064 987 Cash and cash equivalents at end of year 4 736 197 4 995 231 Segmental analysis Audited Audited Year ended Year ended 30 June 2009 30 June 2008 %
R `000 R `000 change Revenue Retail activities - Household goods and building supplies 21 659 722 14 889 601 45 - Automotive 10 202 091 12 419 863 (18) Manufacturing and sourcing of household goods and related raw materials 23 790 810 19 267 783 23 Logistics services 5 775 860 4 984 554 16 Corporate services - Brand management 414 204 361 619 15 - Investment participation 254 169 182 004 40 - Central treasury and other activities 251 156 382 122 (34) 62 348 012 52 487 546 19
Intersegment eliminations (11 479 371) (7 441 661) 50 868 641 45 045 885 13 Operating profit before capital items Retail activities - Household goods and building supplies 1 379 253 964 689 43 - Automotive 282 631 488 623 (42) Manufacturing and sourcing of household goods and related raw materials 2 560 368 2 184 219 17 Logistics services 676 714 460 659 47 Corporate services - Brand management 414 204 361 620 15 - Investment participation 254 169 182 004 40 - Central treasury and other activities 323 338 501 785 (36) 5 890 677 5 143 599 15 Intersegment eliminations (737 908) (481 986) 5 152 769 4 661 613 11
Audited Audited 30 June 2009 30 June 2008 R`000 % R`000 % Total assets Retail activities - Household goods and building supplies 20 328 572 44 23 035 434 45 - Automotive 2 313 830 5 2 644 111 5 Manufacturing and sourcing of household goods and related raw materials 12 072 163 26 13 920 171 28 Logistics services 5 261 014 12 4 629 291 9 Corporate services - Brand management 3 836 533 8 4 143 382 8 - Investment participation 1 921 790 4 1 356 566 3 - Central treasury and other activities 573 505 1 1 109 408 2 46 307 407 100 50 838 363 100 Reconciliation of total assets per segmental analysis to total assets per balance sheet Audited Audited 30 June 2009 30 June 2008 R`000 R`000 Total assets per balance sheet 55 287 425 56 915 744 Less: Cash and cash equivalents (4 736 197) (4 995 231) Less: Investments in associate companies (3 004 766) (739 532) Less: Investments in preference shares (216 389) (193 285) Less: Interest-bearing investments and loans (1 022 666) (149 333) Total assets per segmental analysis 46 307 407 50 838 363 Geographical information Audited Audited 30 June 2009 30 June 2008
R`000 % R`000 % Revenue Continental Europe 19 048 930 37 13 167 533 29 Pacific Rim 3 070 062 6 3 015 132 7 Southern Africa 19 348 947 38 20 331 063 45 United Kingdom 9 400 702 19 8 532 157 19 50 868 641 100 45 045 885 100
Audited Audited Year ended Year ended 30 June 2009 30 June 2008 R`000 % R`000 %
Non-current assets Continental Europe 17 201 993 47 16 756 588 44 Pacific Rim 1 262 208 3 1 522 139 4 Southern Africa 10 863 921 30 10 063 893 27 United Kingdom 7 298 401 20 9 299 134 25 36 626 523 100 37 641 754 100 SELECTED EXPLANATORY NOTES Statement of compliance The consolidated annual financial statements from which these condensed financial statements are derived, have been prepared in accordance with International Financial Reporting Standards (IFRS), the interpretations adopted by the International Accounting Standards Board (IASB), and the requirements of the South African Companies Act. This set of condensed financial statements is presented in compliance with IAS 34 - Interim Financial Reporting. Basis of preparation The annual financial statements are prepared in thousands of South African rands (R`000) on the historical-cost basis, except for certain assets and liabilities which are carried at amortised cost, and derivative financial instruments and biological assets 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 summarised financial information are available for inspection at the company`s registered office. 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 are included in the group`s consolidated financial statements. Changes in accounting policies The accounting policies of the group have been applied consistently to the periods presented in the consolidated financial statements, except for the adoption of: IFRS 7 - Financial Instruments: Disclosures: Reclassification of financial assets IAS 39 - Financial Instruments: Recognition and Measurement: Applicable effective interest rate on cessation of fair value hedge accounting: Eligible hedged items; Embedded derivatives; Reclassification of financial assets IFRIC 9 - Reassessment of Embedded Derivatives: Embedded derivatives IFRIC 14 - IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction IFRIC 17 - Distributions of Non-cash Assets to Owners IFRIC 18 - Transfers of Assets from Customers Improvements to IFRS`s The group early adopted the majority of the IASB`s Improvements to International Financial Reporting Standards for 2008 and 2009. The remainder of these changes will be adopted by the various effective dates. The adoption of the improvements affected certain disclosures to the consolidated financial statements. Details of the implementation and adoption of the various IFRSs and IFRICs are incorporated in the consolidated financial statements. COMMENTARY: REVIEW OF RESULTS Retail activities: household goods Against a backdrop of turbulent economic conditions throughout Europe, the positioning of the European retail activities and the scale of manufacturing and sourcing operations generated solid results. United Kingdom The year under review was a difficult year for the UK economy. Despite this, our UK retail businesses reported sound results with stable revenues and profits. Furniture and household goods: This division has increased its market share and margins on the back of improved operational efficiencies and the failure of certain competitors. After three years in turnaround and consolidation mode, the future focus has turned to expansion and growth. Beds: This division remains the leading bedding retailer in the UK, positioned across various price points. The national scale and resulting efficiency in markting support enabled our businesses to progress at a time when many smaller players have found the going very difficult. Continental Europe The group`s retail operations in Continental Europe are characterised by various trading concepts, particularly large scale discount formats which offer a full range of furniture and household goods. The resilience of the retail discount segment resulted in double-digit like-for-like sales growth and this division continues to benefit from consumers trading down. This is especially prevalent in the more conservative markets of central Europe. Pacific Rim The Australian and New Zealand economies experienced a sharp decline in growth in 2008 resulting in a reduction in discretionary retail spending and a particularly low level of consumer confidence. The group`s retail operations are positioned to appeal to the more affluent market segment and sales were impacted as consumers traded down. Each of the retail trading formats reduced the fixed cost bases of their businesses and focused on regular tactical promotional activity to drive sales. Despite an overall decline in sales, the businesses each improved their trading densities in the second part of the financial year. Southern Africa The Steinbuild divisional results, comprising the Pennypinchers and Timbercity retail operations, were negatively influenced by the downturn in the building and furniture industries. The business opened new stores and converted selected joint-venture stores to company stores that resulted in extra costs. Retail activities: automotive The automotive retail division reported a decline in revenue. The division`s strategy and market share in the volume segment of vehicle sales provided some protection in the declining market. The division returned a satisfactory 2.8% margin on sales. Manufacturing and sourcing The diversity and flexibility of our manufacturing and sourcing operations continued to support the group`s owned and external retail distribution bases. Revenue increased by 23% at consistent margins. United Kingdom The UK has seen particularly tough trading conditions in our key markets; namely furniture and automotive. Increased intergroup trading activity with our retail division largely compensated for weakness in the external markets. This, together with considerable operational rationalisation, has positioned our businesses well for the upturn when it comes. Continental Europe The European manufacturing operations continued to take advantage of the rationalisation and consolidation prevalent within the household goods industry in Europe. The division experienced short-term deflationary pressure on selling prices, but was able to increase productivity and to extract more value from its extensive brand portfolio. International Sourcing The international sourcing operations continued to build capacity within their supplier base to satisfy the group`s sourcing demand. Good growth was achieved coupled with improved quality and customer service levels, which benefitted margins within the retail divisions. Southern Africa The group`s timber operations experienced a decline in demand due to its exposure to the South African construction and furniture markets. The division responded to the soft market by reducing its cost base and accelerating its investment within its forests and thereby securing its supplies internally over the long term. Logistics services Southern Africa The freight and logistics division delivered a strong performance. The division`s focus on less capital intensive supply chain services resulted in improved margins. The fuel and chemical division in particular outperformed expectations, securing additional work, which shielded the division from the reduction in fuel demand. The passenger division also made great strides forward in the current year, with increased margins earned at Intercity and Megacoach. The division secured additional long-term contracts within its personnel transport division that will support sustainable growth. Continental Europe, United Kingdom, Pacific Rim Unitrans is increasingly being integrated into the group`s foreign logistics operations, focussing on providing the retail and manufacturing operations with a world-class distribution network. PERFORMANCE Revenue Group sales grew 13% to R50.9 billion, represented by: 2009 2008 %
R`000 R`000 Change Continental Europe, UK & Pacific Rim 31 519 694 24 714 822 28 Southern Africa 19 348 947 20 331 063 (5) 50 868 641 45 045 885 13
The group`s revenue achieved outside Southern Africa (foreign revenue) principally comprise of revenues in euro, British pound, Polish zloty and Australian dollar. Foreign revenues (converted to euro) increased by 11% from euro 2.3 billion to euro 2.6 billion. The average exchange rate used for converting euro income and expenditure to rand was R12.3503:1 euro compared to R10.7631:1 euro in respect of the previous financial year (15% change). In Europe, the increased revenue is mainly attributable to the European retail businesses consolidated for a full year during the year under review, supplemented by organic growth attributable to the EU sourcing businesses. The decline in southern African revenue was as a result of the R2.2 billion decline in Unitrans` automotive retail sales, which was marginally offset by the increase in logistics revenue. The restructuring of the building supply retail division (Steinbuild) led to control of the joint-venture operations, requiring the consolidation of its results in the year under review. This division was proportionally consolidated in the previous year. Operating margin The diversity of operations, good financial management and the scale of manufacturing and sourcing operations enabled the group to maintain the average operating margin at 10.1% (2008: 10.3%) amidst volatile market conditions. Net finance charges Net finance charges increased to R1 billion (2008: R705 million). The increased interest charges are mainly as a result of the increased currency conversion rate of euro-denominated interest charges and the R1.6 billion convertible bond, maturing in June 2015 (issued in June 2008). The net finance charges are further characterised by lower EURIBOR, LIBOR, JIBAR and SA prime rates prevailing across the globe, partly offset by higher spreads charged by financial institutions. The higher spreads were largely payable on short-term facilities accessed by the group. The long-term debt profile and terms of the group`s debt remained largely unchanged during the year under review. Taxation The group`s increased taxation charge is due to the full-year consolidation of retail operations which are located in higher taxation rate jurisdictions such as Germany. Management anticipates that the average taxation rate should not fluctuate and is not expected to exceed 15% of pre-taxation income in the foreseeable future. Profit after taxation Profit after taxation for the period increased by 6% to R3.6 billion (2008: R3.4 billion) and profit attributable to equity holders of the parent increased by 2% to R3.4 billion (2008:R3.3 billion). Minority interest Profit attributable to minority shareholders increased to R249 million (2008: R126 million). This arose mainly from the minority shareholders within the European retail businesses that were consolidated for a full year during the year under review. Earnings per share (EPS) and Headline earnings per share (HEPS) EPS increased by 3% to 256.1 cents per share (2008: 249.8 cents per share), while HEPS decreased by 4% to 252.9 cents per share (2008: 263.5 cents per share). The R49 million capital profit deducted in calculating headline earnings largely comprised of the profit on disposal of property within the southern African operations, while a R193 million capital loss was added back in the comparative period HEPS calculation, which included a R155 million impairment charge on the group`s associate investments. Assets The group`s total assets at 30 June 2009 amounted to R55.3 billion (2008: R56.9 billion) while the net asset value per share increased to 1 642 cents (2008: 1 637 cents). The majority of the group`s assets are situated in Europe. These assets were converted at a closing rate of R10.8265:1 euro compared to R12.3341:1 euro in the previous financial year (12% change). The unrealised exchange differences on consolidation of foreign subsidiaries is largely attributable to the lower closing conversion rate in translating the group`s euro assets to rand, but also includes the effect of the weak British pound, Polish zloty and Australian dollar against the euro. Working capital The group`s policy to extend and improve credit terms to strong retailers, backed by credit insurance, supported continued sales growth and margins, particularly in the manufacturing and sourcing division. This remains a focussed strategy in respect of major retailers operating in areas where the group previously had no presence. The group maintained its early settlement creditor policy and this benefitted margins with higher settlement discounts available, particularly in the current economic environment. Improved focus on inventory management enabled the group to reduce inventories and improve stock turnover. Debt At 30 June 2009, the group had net interest-bearing debt of R8.8 billion 2008: R9.4 billion) resulting in a net debt:equity ratio of 35% (2008: 38%). The group maintains an appropriate long-term maturity debt profile. At 30 June 2009 the group had cash and cash equivalents and confirmed unutilised borrowing facilities of R8.1 billion (2008: R10 billion). COMMENTARY: Corporate Activity The group implemented the Broad Based Black Economic Empowerment transaction (BBBEE transaction) announced on 1 December 2008. The BBBEE transaction is funded by the group and will therefore result in sustainable benefits to all its participants. The group did not participate in any other corporate actions during the year. COMMENTARY: Outlook The group`s trading results for July and August have been encouraging. The international global economic conditions and financial markets appear to show signs of recovery. The resultant impact on consumer confidence and spending patterns, especially in respect of the market segments where Steinhoff operates, bodes well for improved performance in the current financial year. The group continues to foster its existing trading relationships and the spread of its businesses continues to result in market share gains due to the market consolidation trends. The vertically integrated structure insulates the group`s sustainable earnings capacity whilst its sound financial position allows it to grow, both organically and by acquisition. In line with our business model of increasing the group`s retail footprint, corporate opportunities and strategic partnerships are continuously evaluated, both in Europe and in southern Africa. The group`s balance sheet remains strong with gearing comparatively low and we have retained the ability, flexibility and capacity to pursue further growth and strategic acquisition opportunities. The group`s enduring commitment is to ongoing value creation, effective working capital management, achievement of acceptable operating margins and sound trading performance. DECLARATION OF CAPITAL DISTRIBUTION AND SHARE AWARD The board has resolved to declare a distribution of 60 cents per share (2008: 60 cents per share) from the share premium account to shareholders recorded in the register at the close of business on Friday, 4 December 2009 (the cash distribution). All shareholders will be awarded the opportunity to elect either to receive a cash distribution or a capitalisation share award (the share award). The last day to trade Steinhoff shares on the JSE to ensure that the purchaser is recorded as a shareholder on the record date (4 December 2009) will be Friday, 27 November 2009. Shares will commence trading ex distribution from the commencement of trading on Monday, 30 November 2009. Payment and issue date will be Monday, 7 December 2009. The terms of the share award will be announced on Wednesday, 11 November 2009 and documentation relating thereto will be posted by Wednesday, 11 November 2009. Elections will close on Friday, 27 November 2009 at 12h00. Shareholders are required to notify their duly appointed participant or broker of their election in terms of the capital distribution. Shareholders will have their CSDP or broker accounts credited with the share award on Monday, 7 December 2009. The capital distribution will be electronically transferred to the bank accounts of certificated shareholders who utilise this facility on Monday, 7 December 2009. In all other instances of certificated holders, cheques dated 7 December 2009 or the relevant capitalisation share certificates will be posted on or about that date. Shareholders who have dematerialised their shares will have their accounts credited on 7 December 2009. Annual report The annual report will be mailed to shareholders in due course. The annual general meeting is scheduled to take place on Monday 7 December 2009, at the registered office of the company at 10:00. DIRECTORATE Dr Steve Booysen was appointed as an independent non-executive director on 8 September 2009. On behalf of the Board of Directors SJ Grobler Company Secretary 8 September 2009 Steinhoff Investment Holdings Limited (Steinhoff Investments) Registration number: 1954/001893/06 (Incorporated in the Republic of South Africa) JSE share code: SHFF ISIN: ZAE 000068367 Preference shareholders are referred to the above results of Steinhoff for a full appreciation of the consolidated results and financial position of Steinhoff Investments. DECLARATION OF DIVIDEND NUMBER 8 TO PREFERENCE SHAREHOLDERS The board of Steinhoff Investments has resolved to declare a dividend of 489 cents per preference share in respect of the period from 1 January 2009 up to and including 30 June 2009 (the dividend period), payable on Monday, 26 October 2009, to those preference shareholders recorded in the books of the company at the close of business on Friday, 23 October 2009. This dividend has been determined on the basis of 75% of the prime bank overdraft lending rate of ABSA Bank Limited prevailing over the dividend period, applied to the nominal value plus premium (of R100,00 per preference share, in the aggregate). The dividend is payable in the currency of South Africa.
2009 Last date to trade cum dividend Friday, 16 October Shares trade ex dividend Monday, 19 October Record date Friday, 23 October Payment date Monday, 26 October No dematerialisation or rematerialisation of preference shares may take place between Monday, 19 October 2009 and Friday, 23 October 2009, both dates inclusive. On Monday, 26 October 2009, the preference dividend will be electronically transferred to the bank accounts of preference shareholders. Preference shareholders who have dematerialised their shares will have their accounts credited on Monday, 26 October 2009. PROPOSED TAXATION AMENDMENTS We refer to our previous communications regarding the conversion of Secondary Tax on Companies (STC) to a shareholder dividend tax. As previously communicated, the preference shareholders are advised that a further announcement setting out the impact on the cumulative non-redeemable non-participating preference shares issued by Steinhoff Investment Holdings Limited will be made once the detailed legislation is promulgated and duly considered. On behalf of the Board of Directors D Konar SJ Grobler Non-Executive Director Executive Director 8 September 2009 OTHER NOTES 1. Corporate governance Steinhoff has embraced the recommendations of King Report on Corporate Governance and strives to provide reports to shareholders that are timely, accurate, consistent and informative. 2. Social responsibility Steinhoff continues to be recognised for its corporate social investment activities. The group remains committed to the related initiatives and is conscious of the needs in this regard. A number of social responsibility projects are continuing. 3. Human resources A constructive working relationship is maintained with the relevant unions. Ongoing skills and equity activities continue to ensure compliance with current legislation. Plans continue in terms of initiatives embarked upon that contribute to broader skills development and sourcing appropriately qualified staff on an ongoing basis. 4. Related party transactions The company entered into various related party transactions. These transactions are no less favourable than those arranged with third parties. 5. Further events No significant events have occurred in the period between the reporting date and the date of this report. For more detail on the group`s listed investments, shareholders are referred to the results and/or corporate announcements and financial information of: - Amalgamated Appliance Holdings Limited - 7 September 2009 - www.amap.co.za - KAP International Holdings Limited - 8 September 2009 - www.kapinternational.com Administration Steinhoff International Holdings Limited (Steinhoff or the company or the group) Registration number: 1998/003951/06 (Incorporated in the Republic of South Africa) JSE share code: SHF ISIN code: ZAE000016176 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), DE Ackerman, SF Booysen, DC Brink, YZ Cuba, CE Daun*, HJK Ferreira, SJ Grobler, JF Mouton, FJ Nel, FA Sonn, BE Steinhoff*, IM Topping#, DM van der Merwe Alternate directors: JNS du Plessis, KJ Grove, A Kruger-Steinhoff* #British *German non-executive Company secretary: SJ Grobler Auditors: Deloitte & Touche Sponsor: PSG Capital (Proprietary) Limited Transfer secretaries: Computershare Investor Services (Proprietary) Limited 70 Marshall Street, Johannesburg, 2001 www.steinhoffinternational.com To view results on mobile www.steinhoff.mobi Date: 08/09/2009 14:07:02 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.

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