STEINHOFF INVESTMENT HOLDINGS LIMITED - Annual Results For The Year Ended 30 September 2020
18 December 2020 10:30
Annual Results For The Year Ended 30 September 2020

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 2020


1. SALIENT FEATURES

    •   Revenue from continuing operations increased by 3.5% to R63.7 billion for the year ending 30
        September 2020 (“FY 2020”, “Reporting Period”) from R61.5 billion in the previous year (“FY
        2019”).
    •   During the Reporting Period total impairments of R5.1 billion were recorded, a prior year
        impairment of R3.9 billion was reversed, a provision of R9.4 billion was recognised in respect
        of Litigation Settlement Proposal and a foreign exchange loss of R5.0 billion was recognised
        on the SIHPL CPU liability.
    •   Operating profit from continuing operations, before other material expenses, increased from
        a profit of R6.0 billion for FY 2019 to a profit of R6.4 billion for FY 2020.
    •   An operating loss, from continuing operations after other material expenses, of R9.5 billion
        was recorded for FY 2020, compared to an operating profit of R7.6 billion in FY 2019.
    •   Headline earnings per share reduced from a profit of 7 971.6 cents for FY 2019 to a loss of
        12 483.1 cents in FY 2020.
    •   Basic earnings per share deteriorated from a profit of 5 749.1 cents for FY 2019 to a loss of
        23 116.4 cents in FY 2020.
    •   The Group adopted IFRS 16: Leases during the current Reporting Period, using a modified
        retrospective approach with no restatement of prior period reported results. This had a
        material impact on the Group’s statutory results for the Reporting Period.
    •   Two preference share dividends were declared, as set out in the terms of the preference
        shares: a dividend of 416.90753 cents per share was declared in February 2020, a decrease of
        0.3% compared to the prior corresponding period (2019: 418.09818 cents per share) and in
        August 2020 a dividend of 356.78425 cents per share was declared, a decrease of 15%
        compared to the prior corresponding period (2019: 419.33733 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, the publication of the Consolidated Financial
   Statements was not completed within the prescribed timeframe and the listing of the preference
   shares was suspended by the JSE, effective 1 March 2018, and it has remained suspended since
   that date.

   The audited 2019 Annual Financial Statements were issued on 29 May 2020, the unaudited and
   unreviewed 2020 Interim Results were issued on 3 September 2020, the audited 2016 and 2017
   Annual Financial Statements were issued on 2 October 2020 and the 2018 audited Annual
   Financial Statements issued on 30 October 2020, bringing the financial reporting back up to date.
   The release of the audited 2020 Annual Consolidated and Separate Financial Statements (“2020
   Annual Financial Statements”) today maintains that status.


3. DIVIDEND DECLARATION – ORDINARY SHARES

   No dividend has been declared on the ordinary shares.


4. AUDIT

  These 2020 Annual Financial Statements have been audited by the Company’s auditors, Mazars,
  who expressed two modified audit opinions thereon. The modified audit opinions included:

   a) a qualification of opinion on the Consolidated 2020 Annual Financial Statements;

   b) the Basis for Qualified Opinion on the Consolidated 2020 Annual Financial Statements
      included the comparability of the Consolidated Statement of Financial Performance and the
      Consolidated Statement of Cash Flows due to the prior year disclaimer of opinion, and the
      provision for the Litigation Settlement Proposal;

   c) a qualification on the Separate 2020 Annual Financial Statements;

   d) the Basis for Qualified Opinion on the Separate 2020 Annual Financial Statements included
      the comparability of the Consolidated Statement of Financial Performance and the
      consolidated Statement of Cash Flows due to the prior year disclaimer of opinion; and

   e) reference to two reportable irregularities reported to IRBA:

       (i)     Non-compliance of JSE Listing Requirements due to Steinhoff Investments
               publication of the unreviewed Interim Results for the six months ended 31 March
               2020, and
       (ii)    Non-compliance of the Income Tax Act as the Group has not filed annual income tax
               returns as a result of the annual financial statements not being finalised for past
               years.

   The full auditor’s report forms part of the 2020 Annual Financial Statements and includes details
   of the key audit matters and the reasoning for the modifications set out above. The 2020 Annual
   Financial Statements are available through the links provided below.


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 2020 Annual Financial Statements and does not contain full or
   complete details. This announcement has not been audited but has been extracted from the 2020
   Annual Financial Statements. The 2020 Annual Financial Statements includes the auditor’s report
   and can be found at:
   https://senspdf.jse.co.za/documents/2020/JSE/ISSH/SHFFH/SHFF_FY20.pdf
   or 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 2020 Annual Consolidated and Separate Financial
   Statements as a whole.

   These 2020 Annual Financial Statements have been prepared under the supervision of TLR de
   Klerk (director); BCom (Hons), CTA, HDip (Tax), CFM.


JSE Sponsor: PSG Capital

Stellenbosch, 18 December 2020

Date: 18-12-2020 10:30:00
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