STEINHOFF INTERNATIONAL HOLDINGS N.V. - Restatement of financial statements of subsidiary companies

Release Date: 02/01/2018 09:00
Code(s): SNH
 
Wrap Text
Restatement of financial statements of subsidiary companies

Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
ISIN: NL0011375019

Steinhoff – Restatement of financial statements of subsidiary companies
Steinhoff International Holdings N.V. (the “Company”)

The Company is providing the following update further to:

   -   its announcement dated 5 December 2017 in which the Company announced that
       PwC had been approached to undertake an investigation into certain accounting
       irregularities resulting from the concerns raised by Deloitte; and

   -   its announcement dated 13 December 2017 in which the Company confirmed that, in
       terms of section 2:362 (6) of the Dutch Civil Code, the 2016 consolidated financial
       statements of the Company will need to be restated and can no longer be relied upon.

The update is made on the basis of the information that has been made available and
analysed to date.

The internal review of the accounting irregularities by the management team and the PwC
investigation are progressing and, whilst all involved are working as expeditiously as possible,
the timeline for completion remains uncertain. The group is mindful of its obligations to keep
the market and other interested parties informed of any material developments arising out of
and the results of the review when in a position to do so. In the meantime, the group continues
to work with its external auditors to seek to conclude the audit of the Company’s 2017
consolidated financial statements as soon as reasonably practicable.

In addition, the Company continues to consider whether any other prior years’ financial
statements will need to be restated. In this regard:


   -   After careful consideration and taking into account the requirements of International
       Financial Reporting Standards (IFRS) guidelines and the advice of various advisors, the
       Company wishes to confirm that the audited 2017 consolidated financial statements
       of the Company will be accompanied by the restated 2016 consolidated financial
       statements. In addition, the consolidated statements of financial position will be
       accompanied by a restated comparative 2015 statement of financial position of
       Steinhoff International Holdings Proprietary Limited, the former listed holding company
       of the group (then called Steinhoff International Holdings Limited), that will provide
       additional insight into the cumulative and consolidated opening balances in the 2016
       restated consolidated statement of financial position. Due to the restatements, the
       2016 and 2015 financial statements of Steinhoff International Holdings Proprietary
       Limited can no longer be relied upon. Furthermore, whilst the internal review and
       investigation into the accounting irregularities have not yet concluded, the
       restatement of the financial statements of Steinhoff International Holdings Proprietary
       Limited for years prior to 2015 is likely to be required and investors in Steinhoff are
       advised to exercise caution in relation to such statements.

   -   In addition, the Company wishes to confirm that the accounting irregularities which
       are the subject of the internal review and PwC investigation also affect the
       consolidated financial statements of Steinhoff Investment Holdings Limited by virtue of
       its ownership of certain European subsidiaries until 1 April 2016. Accordingly, the 2016
       and 2015 financial statements of Steinhoff Investment Holdings Limited will need to be
       restated and can no longer be relied upon. Furthermore, whilst the internal review and
       investigation into the accounting irregularities have not yet concluded, the
       restatement of the financial statements of Steinhoff Investment Holdings Limited for
       years prior to 2015 is likely to be required and investors in Steinhoff are advised to
       exercise caution in relation to such statements.

   -   On the contrary, given current information, the Company does not believe that the
       restatements will apply to Steinhoff Services Limited (issuer of listed bonds on the JSE).


Shareholders and other investors in Steinhoff are advised to exercise caution when dealing in
the securities of the Group.

Sponsor: PSG Capital

Stellenbosch: 2 January 2018

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