Steinhoff Investments - Further Update On Financial Reporting Timeline Steinhoff Investment Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 1954/001893/06) JSE Code: SHFF ISIN: ZAE000068367 STEINHOFF INVESTMENTS - FURTHER UPDATE ON FINANCIAL REPORTING TIMELINE Steinhoff Investment Holdings Limited (“Steinhoff Investments” or the “Company”) (together with its subsidiaries, the “Group”) Introduction and background Steinhoff Investments, a wholly owned subsidiary of Steinhoff International Holdings N.V., is the issuer of variable rate, cumulative, non-redeemable, non-participating preference shares with a capital value of ZAR1.5 billion. The preference shares are listed on the Johannesburg Stock Exchange (“JSE”). Following the events of December 2017, Steinhoff Investments was unable to publish its Consolidated Financial Statements for the year ended 30 September 2017 by the requisite date, namely 28 February 2018. The listing of the preference shares was therefore suspended by the JSE, effective 1 March 2018, and this suspension remains in place. Steinhoff Investments Consolidated Financial Statements for 2018 and 2019 have also not yet been published. Despite the suspension of the listing, the Company has continued to pay dividends every six months as set out in the Preference Share terms. Complexity The underlying reasons for the delay in publishing the Company’s Consolidated Annual Financial Statements are complex and result from a number of inter-related historical factors. The complexity that is causing the delay for this company is multi-faceted and starts with the restated consolidated financial statements for the earlier years. During those reporting periods the Steinhoff International N.V. group carried out various complex internal group reorganisations that impact the consolidated financial statements of Steinhoff Investments for the underlying periods but which had no effect on the overall Steinhoff N.V. group financial statements as they are viewed as common control transactions for accounting purposes. The detail of these internal reorganisations was therefore not audited at Steinhoff Investments level as part of the Steinhoff N.V. audit. In addition, the accounting restatements that were required following completion of the forensic investigation in 2019 were also processed at Steinhoff International N.V. group level only and similarly need to be calculated and audited for each financial year down to each reporting entity within the multi-national group. The combination of these factors has made the process of finalising outstanding Consolidated Financial Statements for Steinhoff Investments extremely challenging. The Company stand-alone financial statements have been prepared and are not in themselves a reason for the delay in releasing the Consolidated Financial Statements. Process update The Company has been engaging with various regulators, including the Johannesburg Stock Exchange (JSE) and the Companies and Intellectual Properties Commission (CIPC), to try and find a solution to these challenges, and will continue to do so. Steinhoff Investments has simultaneously engaged with its external auditors, external legal counsel and technical IFRS advisors to ascertain how it may meet the JSE’s publication and other relevant legal requirements in order to complete and publish the outstanding financial statements and / or lift the suspension currently imposed by the JSE on the listing of the Company’s perpetual preference shares. Unfortunately, to date it has not been possible to identify a practical solution to these challenges, and, despite the Company’s best efforts, there remains a substantial body of work to complete and then to audit Steinhoff Investments Consolidated Annual Financial Statements for these outstanding years. These tasks remain complex and the date of their completion is currently uncertain. Good progress has been made in completing the accounting build-ups required to enable preparation of the consolidated financial statements for Steinhoff Investments for the years up to and including 2019 and this project is continuing. However, addressing the Steinhoff Investments accounting challenge is only one element of the substantial workload currently being addressed by the finance team, whose responsibilities also include the broader Steinhoff group, and the preparation of the 2019 Consolidated Financial statements for Steinhoff International N.V.. Revised plan and timetable for Steinhoff Investments In order to provide investors with the most recent financial information, Steinhoff Investments intends to publish its 2019 Consolidated Financial Statements during May 2020. As the 2019 Consolidated Financial Statements may be impacted by any prior year adjustments that may flow through from the currently unaudited prior year consolidated financial statements, shareholders must be cautioned that the audit report in respect of these 2019 consolidated financial statements may include disclaimers in respect of certain of the opening balances. It is Steinhoff Investments’ current intention that the financial statements for the earlier years will then be released before the end of 2020. Steinhoff Investments will update the market in due course regarding expected publication dates. JSE Sponsor: PSG Capital Stellenbosch, 23 March 2020 Date: 23-03-2020 03:30:00 Produced by the JSE SENS Department. 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