Steinhoff International Holdings N.V. : NOTIFICATION OF LENDER MEETING AND UPDATE ON UNAUDITED HALF YEAR PERFORMANCE
STEINHOFF - NOTIFICATION OF LENDER MEETING AND UPDATE ON UNAUDITED HALF YEAR PERFORMANCE
Steinhoff International Holdings N.V. (the "Company" and with its subsidiaries, the "Group")
Shareholders are referred to the presentation by management at a meeting with lenders to the Group held today 18 May 2018 (the "Presentation"), in which the Company provided an update on various matters. A copy of the Presentation is available on the Company's website, www.steinhoffinternational.com.
Updated Half Year Performance
The Group is in the process of completing its reporting for the first half of the 2018 financial year ("H1 2018") and will publish the unaudited consolidated interim results of the Group for H1 2018 (the "Consolidated H1 18 Results") on 29 June 2018.
Prior to the publication of the Consolidated H1 18 Results, the Company wishes to provide guidance (which reflects management's current best estimates and remains subject to further review and change, pending finalisation of the reporting process) around the performance of the Group's retail operations, including supply chain and properties, but excluding central services and POCO ("Retail Operations"). It is estimated that the Group's Retail Operations will deliver H1 2018 revenue of EUR 9.4 billion, compared to a preliminary restated EUR 9.3 billion for the first half of the 2017 financial year ("H1 2017"), representing a 1% increase.
The EBITDA margin for the Group's Retail Operations (the "EBITDA retail margin") for H1 2018 is estimated, before taking into account central costs, foreign exchange losses on cross currency loans and advisory fees, to be between 4% and 5%. This compares to a preliminary restated H1 2017 EBITDA retail margin of between 5% and 6% calculated on an equivalent basis.
It is estimated that the Group's Retail Operations will be profitable as a whole for H1 2018 at an operating profit level notwithstanding that the estimated EBITDA retail margin confirms the Company's previously announced expectation that the Group's historical profits were materially over-stated.
It should be noted that, after taking into account central costs, depreciation, advisory fees (relating to restructuring, liquidity, litigation and investigation in H1 2018), foreign exchange losses on cross-currency loans, impairments, capital losses suffered on asset disposals to generate liquidity and increased interest costs (both from increased interest rates and higher commitment fees on new facilities), the Company estimates that it will post a loss after taxation on a consolidated basis for H1 2018.
It remains essential that a restructuring is agreed with lenders as soon as possible. The Company will provide an update on discussion with its lenders regarding the restructuring as soon as possible and in any event by 29 June 2018.
Shareholders and other investors in the Company are advised to exercise caution when dealing in the securities of the Group.
Stellenbosch, 18 May 2018
18.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Steinhoff International Holdings N.V. Herengracht 466 1017 CA Amsterdam
Netherlands Phone: +27218080700 Fax: +27218080800 E-mail: email@example.com Internet: www.steinhoffinternational.com ISIN: NL0011375019 WKN: A14XB9 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service