Steinhoff with positive H1

All,

Steinhoff published their H119 report today with a consolidated (careful) EBITDA of E300m for the 6 months. The company stated that it expects the second half to be more challenging, in line with what other retailers have reported. Thus arithmetically The company is now 15.3x levered (accrued interest alone has been more than EBITDA for the six months).

Subsidiaries:

- Pepkor Europe (incl. Poundland) continues its Eastern European roll-out and posted growth of a staggering +13% YoY (which other brick&mortar retailer is achieving anything close this year?). Meanwhile EBITDA grew by 29%.

- Conforama (still consolidated) contracted by -2% and is looking to close a number of stores. EBITDA almost halved YoY.

- Steinhoff Africa (we know from their own reporting) have been stable at +2% YoY (in Euro terms) for Sales and EBITDA.

- The Australian business “Greenlit” posted sales on par

- Corporate costs have begun to melt dramatically from E200m to E40m for the half year.

Thoughts:

The overall development is positive. We will be through these statements in time, but for now all eyes are on August 9th.

Wolfgang