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STEINHOFF INTERNATIONAL HOLDINGS N.V. - Steinhoff - Update On COVID-19 And Financial Reporting Timeline

Release Date: 20/04/2020 10:30
Code(s): SNH SHFF     PDF:  
 
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Steinhoff - Update On COVID-19 And Financial Reporting Timeline

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

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

STEINHOFF - UPDATE ON COVID-19 AND FINANCIAL REPORTING TIMELINE
Steinhoff International Holdings N.V. (the “Company”) (together with its subsidiaries, the
“Group”)

Introduction

Steinhoff International Holdings is today providing a further update on the impact of Covid-
19 on Group trading and the expected timetable for publishing the audited Group Annual
Report for 2019 and holding the AGM.

Covid-19 – Trading Impact

In its announcement of 20 March 2020, the Group provided a detailed update on the
impact of Covid-19 on its trading activities. Since that time, the scale and scope of the
global effort to bring the virus under control has broadened further, resulting in additional
restrictions on trade, with the United Kingdom, South Africa, the USA and Australia all
adopting increased social distancing and other lockdown measures.

All of the countries in which we do business have now implemented broad-based steps to
contain the spread of the virus, resulting in significant restrictions on movement and public
gatherings, and the closure of commercial facilities. These measures have resulted in the
partial or full closure of many of our general merchandise stores, or restrictions on trading
hours, and the closure of our offices.

The extent and duration of the current restrictions on trade remain uncertain and it is too
early to determine the exact impact of the pandemic on the performance of the Group
for the 2020 financial year. However, we expect Covid-19 to have a material negative
impact on overall turnover and the underlying business performance during this period, and
consequently on the assessment of current realisable values of investments.
The health and safety of our colleagues remains our top priority and we are continuing to
adopt all specific public health protocols and to provide the necessary support as we
navigate through this unprecedented situation.

As detailed in the announcement of 20 March 2020, management are continuing to take
an active approach, implementing a range of mitigating strategies, including making use
of selected business support initiatives made available by the respective Governments of
the countries in which the Group operates, to protect cashflow and profitability. Immediate
and significant actions are being implemented to reduce costs and optimise liquidity. While
the Group is confident that the actions it is taking to address the impacts of Covid-19 are
appropriate and timely, the situation remains fast moving and uncertain and these are
being kept under constant review.

Covid-19 – Impact on 2019 Annual Report timetable and AGM

The Group notes that, in light of the impact of Covid-19, financial regulators in countries in
which it operates have indicated that they will take into consideration that the operational
restrictions relating to Covid-19 will have an impact on the timetable for the publication of
its 2019 Annual Report and audited Consolidated Financial Statements. The necessary
restrictions on travel and the need to enforce social distancing measures have resulted in
delays to the audit process, including challenges in providing or obtaining audit
documentation for judgemental areas and, despite significant effort being exerted by all
parties, the 30 April 2020 timeline for completing the Group consolidated financial reporting
and related audit processes can no longer be met.

The Management Board and Mazars, the Group’s external auditor, have, based on
currently available information, jointly agreed on a revised timeline. The new schedule is
provisional and subject to change, as the restrictions and related impacts arising from
Covid-19 remain fluid and uncertain.

On this basis, the Group currently estimates that it will be able to publish its 2019 Annual
Report, including the audited Consolidated Financial Statements, on 30 June 2020.

This delay will also impact the timing of the forthcoming Annual General Meeting, which will
no longer be held on 26 June 2020. A new date will be announced once there is more
certainty.

In light of the current extraordinary circumstances, all of these dates will be kept under
review and the Group will inform shareholders should it become clear that a further change
is necessary.

Theodore de Klerk, Chief Financial Officer, said:

“Finalising the accounting and audit work for the 2019 Annual Report in the current
circumstances has presented an unexpected additional challenge and, unfortunately, we
require further time to complete this task. Having conducted a thorough review of all
matters outstanding with Mazars, we have estimated a new timetable that we believe is
achievable. We have a clear view of the tasks ahead and I would like to assure all
stakeholders that we continue to apply maximum effort to finish the job. Further updates, if
required, will be given as and when appropriate.”

JSE Sponsor: PSG Capital
Stellenbosch, 20 April 2020

Date: 20-04-2020 10:30:00
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