Zanme, we get your point that you think management is bad. You have mentioned that since you have joined. But the only valid point you are giving us is that their salary is too high and that the share price is falling.
May I ask you to please give us examples of where management has made errors/fauls decisions since they where appointed in 2018?
I will start to give you some key points why I think they have done a great job so far:
1) - In 2018 they had to ensure the company keeps running- Here they had to find a solution with creditors. If they would have said no we are not giving you 10% interest per annum (Due to the risk Steinhoff has) the creditors would have just pulled the plug and Steinhoff would have been liquidated and Shareholders would have lost everything.
2) - Simplifying the Group structure and selling off non-core loss generating operating units. In my opinion they have done this in a structured manner given the current market environment. They have not done any fire sales. They have identified their key operating units they want to keep. Some examples of their sales for you:
- Sold KAP at way higher prices that KAP is currently sitting
- Sold PSG at way higher prices then PSG is currently sitting
- Sold POCO at reasonable prices and solved the legal conflicts
- Sold some Pepkor shares at way higher prices then its currently sitting
- Sold Unitrans at a reasonable price. Unitrans will be generating huge losses now after Corona
- Sold part of Greenlit, after it was sold it went into business rescue
- Sold properties at reasonable fair values
- Sold major part of Conforama, which is still generating losses even after the restructure to to the nature of that business
3) They have not diluted the share number by way of a Rights issue or any other form of capital raising. We still have the same number of shares in issue as in 2017. They are even planning to cnacel shares to reduce the issued share number.
4) They have cleaned up the mess of the financials and they are back to meet the reporting timelines going forward. They are on track to get a clean audit opinion in future.
5) They have supported the key operating units to all return to profitability and to produce a half year EBITDA of 700 Million €.
6) They are working on finding a solution to solve all litigations in a global settlement. If this is approved it will reduce future legal costs materially.
I know you don't want to see it, but Steinhoff is still sailing and has very strong operating units and once the litigations are solved they can trade them selves out of their debt levels.
So please give us some points where you would have done something differently?
