Steelcase Investors Relations

Revolution Work Transformation

From the Personal Harbor
of Jim Hackett

The Road to Six Billion and Beyond

The Six Growth Strategies Illustrated

Information for Our Investors

Steelcase Offerings Around
the World

Financial Highlights

MD&A

Consolidated Statements of Income

Consolidated Balance Sheets

Consolidated Statements of Changes
in Shareholders' Equity

Consolidated Statements of Cash
Flows

Notes to Consolidated Financial Statements
1.	Nature of Operations
2.	Summary of Significant Accounting Policies
3.	Comprehensive Income
4.	Initial Public Offering
5.	Inventories
6.	Property and Equipment, Net
7.	Notes Receivable and Leased Assets
8.	Joint Ventures and Dealer Transitions
9.	Other Assets
10.	Short-Term Borrowings and Long-Term Debt
11.	Employee Benefit Plan Obligations
12.	Capital Structure
13.	Stock Incentive Plans
14.	Other Income, Net
15.	Income Taxes
16.	Financial, Instruments, Concentrations of Credit Risk and Off-Balance-Sheet Risk
17.	Commitments and Contingencies
18.	Operating Segments
19.	Acquisitions
20.	Unaudited Quarterly Results

Report of Independent Certified
  Public Accountants and
  Management's Responsibility
  for Financial Reporting

Directors and Executive

ST E E L C A S E I N C.
Notes to Consolidated Financial Statements

Note 8

JOINT VENTURES AND DEALER TRANSITIONS

The Company’s investments in and advances to its unconsolidated joint ventures and dealer transitions are summarized as follows:

(in millions)

	Feb 25, 2000	Feb 26, 1999

Investment in and advances to Steelcase Strafor	$ —	$ 187.9
Investments in dealer transitions	25.3	7.1
Other joint ventures	11.7	15.4

	$ 37.0	$ 210.4

As discussed in Note 19, the Company acquired the remaining 50% interest in Steelcase Strafor effective March 31, 1999. In December 1998, the Company issued a note receivable to Steelcase Strafor in the amount of $66.4 million to fund in part the acquisition of Werndl BüroMöbeL AG (“Werndl”) by Steelcase Strafor.

Investments in dealer transitions represent dealers which the Company has acquired with the intention of reselling as soon as practicable. Accordingly, the Company recognizes its share of earnings and losses from dealer transitions pursuant to the equity method of accounting. Accounts and notes receivable from dealer transitions approximated $75.2 million and $25.0 million as of February 25, 2000 and February 26, 1999, respectively.

Other joint ventures are comprised of joint ventures in the United States, Saudi Arabia, Japan and Thailand.

The Company’s equity in net income of joint ventures and dealer transitions consists of:

(in millions)

*Year ended*	Feb 25, 2000	Feb 26, 1999	Feb 27, 1998

50% share of Steelcase Strafor net income ⁽¹⁾	$ 2.6)	$ 8.9)	$ 5.6
Net income of dealer transitions	1.0)	0.1)	2.0
Other joint ventures, net	(0.3)	(0.1)	0.3

	$ 3.3)	$ 8.9)	$ 7.9

(1) Due to the effective date of the Company's acquisition of Steelcase Strafor (see Note 19), net income for the year ended February 25, 2000 represents Steelcase's share of Steelcase Strafor's net income for the first quarter of fiscal 2000.

Summarized financial information for Steelcase Strafor, prior to the acquisition indicated in Note 19, as of December 31, 1998 and the two years ended December 31, 1998, is as follows:

(in millions)

*December 31,*	1998

Balance Sheet :
Current assets	$ 315.4
Property and equipment, net	154.4
Other assets	189.9

Total assets	659.7

Current liabilities	310.1
Long-term liabilities	118.6

Total liabilities	428.7

Net assets	$ 231.0

(in millions)

*Year ended December 31,*	1998	1997

Results of Operations:
Net sales	$ 506.9	$ 468.6
Operating income	33.3	26.5
Net income	17.9	11.2