Steinhoff - comment

Pepco have put forward an overall strong set of results, despite the uninspired stock market reaction. Restrictions have now been lifted in most of its markets and growth - both on a total and LfL basis is continuing strong. LTM (Pre IFRS16) EBITDA is climbing above €450m now, so the market is valuing the company at approx. 12x. To us this is in fact positive news as we had been concerned by some of the LfL math implied by the Q1 report. Growth may be a touch lagging our original aspirations for the name, but in the current environment of uncertainty surrounding many of the Eastern European economies, we feel strongly about those results.