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Expanded into northern hemisphere retail market with R5.5 billion acquisition of Office footwear chain in the United Kingdom (UK) in December 2015
Integration of Office and Truworths progressing well, with initial focus on aligning retail philosophies, practices and systems
Competitive performance with all board-approved financial targets achieved
Key financial metrics*:
Return on assets 26%
Earnings before interest
and taxation (EBIT) up 20.7% to R4.2 billion
Introduction of new affordability assessment regulations in South Africa reduced credit sales by at least R200 million
Encouraging improvements in debtors book delinquency metrics but customer account growth slowed and level of new account acceptances reduced
Good customer response to merchandise ranges in Truworths, resulting in higher sales growth and stable gross margin
Economic conditions in South Africa, the UK and Europe became increasingly challenging, slowing sales growth in the second half
* Not comparable with prior period owing to Office acquisition.




Outlook for 2017

Trading environment to remain challenging


South Africa

Slow economic growth and further inflationary pressure on consumers

High product inflation owing to Rand weakness will impact summer ranges

New affordability assessment regulations remain a key risk to profitability although impact could be lessened through successful mitigation strategies


United Kingdom

Uncertainty following decision to withdraw from European Union and muted consumer sentiment

However, environment likely to stabilise as more clarity emerges on Brexit consequences

Office stock management and ranges to benefit from Truworths' influence as the year progresses

Readers should note the following references throughout the Integrated Report:
Truworths International Ltd and its subsidiaries is referred to as ‘the Group'
Truworths International Ltd is referred to as 'Truworths International' or 'the company'
The Group excluding Office is referred to as 'Truworths'
Office Holdings Ltd is referred to as ‘Office'

Sustainable Value

Our Business Philosophy is core to the success of the business and is therefore integral to creating sustainable value

Our Philosophy

defines our customer and the merchandise, credit, retail and service offering
shape the business culture and employee behaviours required to achieve our Purpose
describes our stakeholder expectations and how the business is assessed in terms of creating value for these stakeholders


Governance in the Group extends beyond compliance and is aimed at improving corporate performance, which aims ultimately to enhance value for our stakeholders.

Performance Review

The Office acquisition will have a profound impact on the Group by diversifying the customer base and geographic store profile, growing footwear as a proportion of retail sales, shifting the credit:cash sales mix, diversifying revenue streams and generating hard currency earnings in offshore markets.

Operational Review

The Truworths portfolio of brands and specialist branded emporium stores offer an enticement to youthful and fashionable consumers to shop for quality apparel merchandise of international standard.

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