Southern Sun Limited · JSE:SSU

Southern Sun — Investor Presentation (May 2024)

26 slides from Southern Sun's investor presentation, May 2024

  1. Slide 1: Southern Sun Investor Presentation May 2024

    F’24 • Revenue up 19% to R6.0bn • EBITDAR up 32% to R1.9bn • Adjusted HEPS up 88% to 56.4c • Net debt reduced to R1.0b • Dividend per share of 12.5c SOUTHERN SUN INVESTOR PRESENTATION SOUTHERN SUN May 2024 INVESTOR PRESENTATION May 20241

  2. Slide 2: Disclaimer

    DISCLAIMER Certain statements in this document may constitute ‘forward looking statements. Such forward looking statements reflect the company’s beliefs and expectations and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or

  3. Slide 3: Group Structure

    GROUP STRUCTURE Public 45% 55% 100% 100% SOUTH AFRICA OFFSHORE • Owned, managed • Owned, managed and leased hotels and leased hotels • UK Investments – 26% 3 3

  4. Slide 4: Board of Directors

    BOARD OF DIRECTORS EXECUTIVE DIRECTORS INDEPENDENT NON-EXECUTIVE DIRECTORS Marcel Nikolaus von Aulock Laurelle McDonald Mohamed Haroun Ahmed Lynette Moretlo Molefi Chief Executive Officer Chief Financial Officer Lead independent Independent non-executive director non-executive director NON-EXECUTIVE

  5. Slide 5: Southern Sun at a Glance

    SOUTHERN SUN AT A GLANCE OVER HOTELS & RESORTS 90 in South Africa, 16,000 rooms OVER Africa, the Seychelles and Total Total Middle East from luxury to economy Hotels Rooms Luxury Western Cape 17 3 352 KwaZulu-Natal 14 2 869 Gauteng 30 5 167 Eastern Cape 5 772 Full Service Mpumalanga 8 675 Other 6 71

  6. Slide 6: Operated Portfolio

    OPERATED PORTFOLIO Luxury 54 Arabella HOTEL, GOLF & SPA ry) i") BEVERLY HILLS INTERCONTINENTAL, SANDTON SUN = SANDTON TOWERS MOUNT GRACE WOTEL & SPA soe Y Southern Sun Full Service Y SouthernSun HOTELS © SouthernSun RESORTS SUN SQUARE Y Garden Court Economy ©) stayeasy Convention Centre © SANDTON CO

  7. Slide 7: Cash Flow (Rm)

    CASH FLOW (Rm) F’24 F’23 Ebitdar per income statement1 1 902 1 436 Property rentals (340) (288) Move in working capital adjusted for non-cash and exceptional items 116 52 Dividend income from associate 18 3 Cash generated from operations 1 696 1 203 Net finance costs paid (excluding IFRS16 adjustmen

  8. Slide 8: Cash Flow (Rm) Continued

    CASH FLOW (Rm) CONTINUED F’24 F’23 Free cash inflow from operations (b/f) 970 753 Separation payment - 399 Disposal proceeds 27 548 Investment activities – expansion capex (180) (166) Share buyback (617) (45) Associates, Loans and investments 107 - Net cash surplus 307 1 489 Opening net IBD (1 311)

  9. Slide 9: Investment Activities (Rm)

    INVESTMENT ACTIVITIES (Rm) F’24 F’23 Investment activities 180 166 Acquisition of Southern Sun and StayEasy Mbombela hotels - 142 Radisson Waterfront - 24 Birchwood 160 - Victoria Junction – Sectional title units 7 - Umhlanga land 6 - Sunswop units 5 - Beverly Hills 2 - Investment activities (c/f) 1

  10. Slide 10: Investment Activities (Rm)

    INVESTMENT ACTIVITIES (Rm) F’24 F’23 Investment activities (b/f) 180 166 Maintenance capex 298 104 Investment properties 25 6 Western Cape 84 17 KwaZulu-Natal 45 19 Gauteng 92 13 Other 30 20 Offshore hotels 7 1 Manco 15 28 Total investment activities 478 270 10 10

  11. Slide 11: Interest Bearing Debt (Rm)

    INTEREST BEARING DEBT (Rm) F’24 F’23 External debt – Offshore (US$ based) 496 468 External debt (Rand based) 1 170 1 500 Prepaid borrowing costs (3) (4) Gross IBD 1 663 1 964 Cash on hand – Hotels SA (372) (529) Cash on hand – Hotels Offshore (267) (124) Net IBD 1 024 1 311 Cash held as security for

  12. Slide 12: Debt Facilities, Liquidity and Covenants

    DEBT FACILITIES, LIQUIDITY AND COVENANTS  Interest-bearing debt net of cash at 31 March 2024 totalled R1.0 billion (2023: R1.3 billion) R287 million less than the prior year after share buybacks of R617 million and capital expenditure of R180 million  The group had cash and cash equivalents of R63

  13. Slide 13: Review of Operations

    REVIEW OF OPERATIONS  The year under review has been a record one for Southern Sun’s profitability, with total income growth of 19%, Ebitdar growth of 32% and Adjusted HEPS growth of 88% to 56.4 cents per share  This performance is anchored through • The strict maintenance of the cost efficiencies

  14. Slide 14: Review of Operations

    REVIEW OF OPERATIONS  Overall, the group’s operating costs for the year ended 31 March 2024 have increased by 14%  Main contributors to this increase • Variable costs in line with the increased levels of trading • Employee costs following above inflationary salary increases implemented on 1 April

  15. Slide 15: Review of Operations

    REVIEW OF OPERATIONS  Exceptional gains for the year of R56 million (2023: R640 million) relate to the increase in the fair values of investments properties of R59 million net of profits on disposal of property, plant and equipment of R3 million – exceptional gains for the prior year of R640 millio

  16. Slide 16: Review of Operations

    REVIEW OF OPERATIONS  Group adjusted headline profit for the year ended 31 March 2024 of R783 million (2023: R443 million) has increased by 77%  The weighted average number of shares in issue has reduced from the prior year due to the group’s acquisition of 135 million SSU shares at an average pri

  17. Slide 17: Quarterly Performance (Rm)

    QUARTERLY PERFORMANCE (Rm) Q1 Q2 H1 Q3 Q4 H2 Total Income F’24 1 326 1 464 2 790 1 733 1 524 3 257 6 047 F’231 989 1 160 2 149 1 531 1 401 2 932 5 081 Change on F’23 337 304 641 202 123 325 966 F’24 Occupancy % 54.2 59.6 56.9 63.6 56.8 60.2 58.6 Ebitdar F’24 306 439 745 622 535 1 157 1 902 F’231 159

  18. Slide 18: Occupancy

    SOUTH AFRICA SYSTEM-WIDE PORTFOLIO – ROOMS SOLD SINCE 1994 3 500 000 80% 3 000 000 70% 60% 2 500 000 50% Rooms sold 2 000 000 Occupancy 40% 1 500 000 30% 1 000 000 20% 500 000 10% 0 0% F'94 F'95 F'96 F'97 F'98 F'99 F'00 F'01 F'02 F'03 F'04 F'05 F'06 F'07 F'08 F'09 F'10 F'11 F'12 F'13 F'14 F'15 F'16

  19. Slide 19: Income Statement (Rm)

    INCOME STATEMENT (Rm) % F’24 F’23 Change Income 6 047 5 081 19 Rooms revenue 4 008 3 314 21 Owned stats F’24 F’23 Food & beverage revenue 1 502 1 304 15 Occupancy (%) 58.6 51.5 Property rental income 229 195 17 Average room rate (R) 1 388 1 268 Other income¹ 308 268 15 RevPar (R) 813 652 Overheads (

  20. Slide 20: Reconciliation to Adjusted Headline Earnings (Rm)

    RECONCILIATION TO ADJUSTED HEADLINE EARNINGS (Rm) F’24 F’23 % Net of tax Net of tax Change Attributable profit 856 1 014 (16) Separation payment - (313) Profit on disposal of subsidiary - (259) Cash flow hedges reclassified to profit or loss - (21) Fair value adjustment of investment properties (46)

  21. Slide 21: Segmental Analysis (Rm)

    SEGMENTAL ANALYSIS (Rm) Income Ebitdar Ebitdar margin % F’24 F’23 F’24 F’23 F’24 F’23 Investment properties 184 153 181 149 98 97 Sandton Consortium 661 521 209 147 32 28 SA Portfolio 4 848 3 971 1 496 1 131 31 28 Western Cape 1 934 1 453 782 512 40 35 KwaZulu-Natal 1 013 961 279 281 28 29 Gauteng 1

  22. Slide 22: Prospects

    PROSPECTS  South Africa continues to benefit from strong international demand, and this could be even stronger with the removal of visa restrictions to some markets and further activation of inbound air capacity to the country  The middle-income international traveller has not recovered to pre-Cov

  23. Slide 23: Strategy

    STRATEGY  Getting more out of our irreplaceable hotel portfolio by allocating capital to key properties so that they remain best-in-class and our customers’ preferred accommodation provider  Refurbishment programmes are currently underway at the Sandton Towers, the Southern Sun Sandton, the Southe

  24. Slide 24: Notes

    NOTES Y Southern Sun

  25. Slide 25: Notes

    NOTES Y Southern Sun

  26. Slide 26: Follow the Sun - Thank You

    Follow the Sun THANK YOUYOU THANK 26

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