Introducing our
2024 Integrated Report

We have pleasure in presenting the Group’s Integrated Report for the financial period ended 30 June 2024. Through our reporting, we aim to demonstrate in a balanced way how the Group has adapted and responded to the constrained economic and trading environment to create, preserve or erode value over the short, medium and long term. As always, our reporting is aligned with our Business Philosophy, with its focus on creating long-term, sustainable value for our stakeholders.

GROUP AT A GLANCE

Our Business Philosophy

OUR BUSINESS PHILOSOPHY IS OUR DNA

Our Business Philosophy fundamentally describes the essence of who we are. It is our DNA that makes us unique and differentiates us from our competitors.

OUR LEADERS

play an essential role in ensuring that we remain true to our DNA. We believe in and actively practise our core beliefs.

WE CREATE

the platform and environment for teams and individuals to deliver our Purpose and live our Values so that we can deliver on our stakeholders’ expectations.

WE PRACTISE

a leadership style that is realistic but cautiously optimistic, that focuses on our Values, and that ensures solutions are found and opportunities identified are capitalised on, particularly in adversity.

WE ARE RESOLUTE

in our focus on our Business Philosophy, which drives our strategy and our behaviour.

OUR BUSINESS PHILOSOPHY

Governance creating value

GOVERNANCE ADDING VALUE

The Group’s approach to corporate governance is to ensure it contributes to improved operational decision making and corporate performance, thereby reducing the risk of failure. The Group therefore aims for the relevant governance policies, structures and processes, which initially may have been brought into existence to ensure adherence with applicable regulation and codes of conduct, to add value and ensure corporate sustainability, and to enable the Group to take advantage of opportunities that arise.

OUR CORPORATE GOVERNANCE AIM IS ACHIEVED BY:

Critically considering governance requirements to determine how they could be implemented in a value-adding way and in a manner that aligns with the Group's Business Philosophy

Identifying opportunities in governance requirements for enhanced accountability, improved decision making, better risk mitigation and more comprehensive disclosure

Conducting a thorough enquiry process before putting into place policies, reporting and monitoring mechanisms, and committee structures that are hallmarks of a sound corporate governance framework

Periodically reviewing these elements and benchmarking the Group's initiatives against comparable companies and recommended best practice

GOVERNANCE CREATING VALUE

GROUP CAPITAL MANAGEMENT

CAPITAL ALLOCATION

The Group's capital structure is actively managed to enhance financial returns to shareholders and generate competitive capital ratios. Management's approach to capital allocation is aligned with the Group's strategy and Business Philosophy, with its focus on long-term value creation for shareholders.

The components of the capital allocation strategy, in order of priority, are as follows:

Investing to sustain the organic growth of the business

Reinvesting in the business through maintenance and expansion capital expenditure, mainly in-store development, distribution facilities and information technology.

Returning funds to shareholders through dividends

Dividend cover is determined annually by the board. The dividend cover has been at the current level of 1.5 times headline earnings per share since the 2014 financial period.

Returning excess capital to shareholders through share buy-backs at levels that are earnings accretive

Since the inception of the share buy-back programme in 2002, 155 million shares have been repurchased at a total cost of R6 billion at an average price of R38.72 per share, 141% below the period-end closing price of R93.28. Since January 2020, 51.9 million shares have been repurchased (12% of shares in issue, net of treasury shares) for R2.5 billion at an average price of R47.88 per share.

Seeking opportunities for bolt-on acquisitions of fashion‑related businesses in SA and the UK

Recent bolt-on acquisitions that have been successfully integrated into the Group's operations include the Barrie Cline design department (2021) and Bonwit design centre (2022).

Seeking opportunities for larger and potentially diversifying acquisitions

The acquisition of the Office fashion footwear chain in the UK in 2015 diversified the Group's product offering, sales, earnings and country risk profile.

Capital efficiency is measured by the return on equity and return on capital which were 36% (2023: 44%) and 53% (2023: 64%), respectively.

Real wealth continued to be created for shareholders with a return on invested capital of 25% (2023: 28%).

GROUP CAPITAL MANAGEMENT