Annual Results For The Year Ended 30 September 2017

Steinhoff Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1954/001893/06)
JSE Code: SHFF
ISIN: ZAE000068367
("Steinhoff Investments", "Company" or the "Group")



ANNUAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2017


1. SALIENT FEATURES
    •   Revenue from continuing operations decreased to R78.0 billion for the year to 30 September
        2017 (“FY 2017”) from R86.8 billion in the previous 15-month period (“FY 2016”).
    •   An operating loss, from continuing operations, of R3.7 billion was recorded for FY 2017, down
        from an operating profit of R8.3 billion in FY 2016.
    •   Headline earnings per share reduced from a profit of 37 301.8 cents per share for FY 2016 to
        a loss of 14 368.8 cents per share in FY 2017.
    •   Basic earnings per share decreased from a profit of 30 295.8 cents per share for FY 2016 to a
        loss of 11 424.1 cents per share in FY 2017.
    •   Two preference share dividends were declared, as set out in the terms of the preference
        shares: in April 2017 a dividend of 436.68 cents per share, an increase of 10% compared to
        the prior year (2016: 396 cents per share) and in October 2017 a dividend of 429.56 cents per
        share, an increase of 1% compared to the prior year (2016: 424 cents per share).


2. OVERVIEW
    Steinhoff Investments is a wholly-owned subsidiary of Steinhoff International Holdings N.V.
    (“Steinhoff N.V.”) and is the issuer of variable rate, cumulative, non-redeemable, non-
    participating preference shares with a capital value of R1.5 billion. The preference shares are
    listed on the JSE. Following the events of December 2017, Steinhoff Investments was unable to
    publish its Consolidated Financial Statements within the prescribed timeframe and the listing of
    the preference shares was suspended by the JSE, effective 1 March 2018, and has remained
    suspended since that date. The audited 2019 Annual Financial Statements were issued on 29
    May 2020 while the unaudited and unreviewed 2020 Interim Results were issued on 3
    September 2020.

    These audited 2017 Annual Financial Statements are being released together with the audited
    2016 Annual Financial Statements. It is Steinhoff Investments’ current intention that the financial
    statements for 2018 will be released before the end of 2020 and that regular reporting will resume
    with effect from the 2020 full year results.


3. DIVIDEND DECLARATION – ORDINARY SHARES
   During the 2017 Reporting Period, as part of an internal restructure, Steinhoff Investments
   declared and paid a distribution to its shareholder, Steinhoff N.V. The distribution of R18.2 billion
   was made partially as a capital distribution and partially from reserves.


4. AUDIT
  These FY 2017 Annual Consolidated Financial Statements have been audited by the Company’s
  auditors, Deloitte & Touche, who expressed a modified audit opinion thereon. The modified audit
  opinion included:

   a) a disclaimer of opinion on the consolidated and separate financial statements;

   b) material uncertainties relating to going concern, litigation, taxation effect on the restatements
       and adjustments, control conclusions on certain entities, financial information used for the
       consolidation of BVI, the foreign currency translation reserve, the timing of recording and
       classification of adjustments and the resulting restatement with respect to the investment in
       Brait shares, comparatives presented in these consolidated financial statements, the values
       used in accounting for the disposal of the Steinhoff Europe Group to Steinhoff N.V., the
       impairment of inter-company loan receivables at 30 September 2017, the Group’s continuing
       involvement with the JD Financial Services Loan Book, the impairment of the loan receivable
       from Fulcrum Financial Services SA, line items described as “Net other impact” in the notes to
       the items included in the 2016 consolidated statement of financial position, the amounts
       classified as discontinued operations in the 2016 consolidated financial statements, the
       disclosure of major classes of cash receipts and payments in the consolidated statement of
       cash flows, historical goodwill carried at the Steinhoff Investments Group level, the nature of
       the sourcing rebates received from the TG Group, the values used in accounting for de-
       recognition of shares in Steinhoff Europe Group to Steinhoff N.V – Separate company, the
       impairment of investment in SFHG – Separate company, the impairment of investment in
       SIHPL and Steinhoff Africa – Separate company, the Impairment of inter-company loan
       receivables at 1 July 2015, 30 September 2016 and 30 September 2017 – Separate company,
       and the timing of recording adjustments following the restatements – Separate company; and

   c) reference to the reportable irregularities reported to IRBA.

   The full auditor’s report, included in the annual financial statements, explains the reasoning for the
   modifications.


   The following non-compliance with laws and regulations has been noted:
           i.   Non-compliance with the Companies Act requirements as annual financial statements for
                various individual entities have not been signed off within six months after year-end;
           ii.  Non-compliance with JSE Listing Requirements as Steinhoff Investments has not
                published interim and final results for several years; and
           iii. Non-compliance with the Income Tax Act as the Group has not filled annual income tax
                returns for several entities as a result of the annual financial statements not being
                finalised for past years.

        The board of directors of the Company remains committed to resolve the non-compliance
        with the JSE Listing Requirements as soon as possible.


5. SHORT-FORM ANNOUNCEMENT
   This short-form announcement is the responsibility of the directors of the Company. It is only a
   summary of the information in the consolidated and separate financial statements (“Full
   Announcement”) and does not contain full or complete details. This announcement has not been
   audited but extracted from the audited results. The Full Announcement includes the auditor’s
   report and can be found at:
    https://senspdf.jse.co.za/documents/2020/JSE/ISSH/SHFFH/SHFF_FY17.pdf
   and also on Steinhoff N.V.’s website http://www.steinhoffinternational.com or may be requested
   in person, at the Company's registered office or the office of the sponsor, at no charge, during
   office hours.

   Any investment decisions by investors and/or preference shareholders should be based on all
   financial information released, including the 2017 Consolidated Financial Statements as a whole.
   These annual results have been prepared under the supervision of TLR de Klerk (director); BCom
   (Hons), CTA, HDip (Tax), CFM.



JSE Sponsor: PSG Capital

Stellenbosch, 2 October 2020

Date: 02-10-2020 04:35:00
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.