Tsogo Sun Limited · JSE:TSG

Tsogo Sun — Tsogo Sun Gaming — Investor Presentation (November 2019)

20 slides from Tsogo Sun's investor presentation, November 2019

  1. Slide 1: Tsogo Sun Gaming Investor Presentation November 2019

    Tsogo Sun Gaming Investor Presentation November 2019

  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 o

  3. Slide 3: Group Structure Post Unbundling

    Tsogo Sun Gaming - Group Structure Post Unbundling Public 49 % 51% 100% 100% 100% 3

  4. Slide 4: Financial Overview

    FINANCIAL OVERVIEW 4

  5. Slide 5: Statutory Group Income Statement (Rm)

    Tsogo Sun Gaming - Statutory Group Income Statement (Rm) (4) HY1 F’20 HY1 F’19 % Change Continuing operations Income 5 958 5 696 5 Ebitdar 2 001 1 922 4 LTI credit 10 16 * (1) Property rentals (10) (65) * Ebitda 2 001 1 873 7 Amortisation & depreciation (458) (382) (20) (1)(2) Exceptional items (23)

  6. Slide 6: Statutory Group Income Statement (Rm)

    Tsogo Sun Gaming - Statutory Group Income Statement (Rm) HY1 F’20 HY1 F’19 % Change Profit for the period from continuing operations 698 803 (13) (1) Profit /(loss) for the period from discontinued operations 564 (7) * Profit for the period 1 262 796 59 Non-controlling interests continuing operation

  7. Slide 7: Group Impact of IFRS 16 on HY1 (Rm)

    Tsogo Sun Gaming - Group Impact of IFRS 16 on HY1 (Rm) HY1 F’20 Net Operating costs 6 Ebitdar 6 Rentals 54 Ebitda 60 Amortisation & depreciation (31) Net finance costs (22) Profit for the period 7 7

  8. Slide 8: Comparable Group Income Statement (Rm)

    Tsogo Sun Gaming - Comparable Group Income Statement (Rm) % HY1 F’20(1) HY1 F’19(1)(2) % Change Contribution Income 5 958 5 696 5 100 Net gaming win 5 029 4 792 5 84 Rooms revenue 251 245 2 4 Food & beverage revenue 330 313 5 6 Other revenue / income 348 346 1 6 Operating expenses (3 957) (3 768) (5

  9. Slide 9: Comparable Divisional Contribution (Rm)

    Tsogo Sun Gaming - Comparable Divisional Contribution (Rm) (1) % HY1 F’20 HY1 F’19 % Change Contribution Casino 3 759 3 667 2.5 75 Bingo 430 366 17 8 LPM 840 759 11 17 Net Gaming Win 5 029 4 792 5 100 Casino 4 648 4 528 3 78 Bingo 469 405 16 8 LPM 841 763 10 14 Income 5 958 5 696 5 100 Casino 1 628

  10. Slide 10: Comparable Group Cash Flow (Rm)

    Tsogo Sun Gaming - Comparable Group Cash Flow (Rm) HY1 F’20(1) HY1 F’19(1)(2) Ebitda per income statement - Continuing Operations 2 001 1 933 Working capital, exceptional items, leases & other (112) (98) Finance costs paid (net) (561) (371) Taxation paid (247) (274) Capital Expenditure (531) (919) D

  11. Slide 11: Group Opportunities

    Tsogo Sun Gaming - Group Opportunities • Application of cash retained • Reduce debt • Share buy-backs • Acquisitions • Dividends • Refinance group debt facilities 11

  12. Slide 12: Regulatory Risks

    Tsogo Sun Gaming - Regulatory Risks  Additional gaming licenses  Gambling taxes  B-BBEE conditions of licence  National Gambling Amendment Bill  Smoking regulations  Illegal gambling 12

  13. Slide 13: Tsogo Sun Casinos

    Y TSOGO SUN CASINOS Y TSOGO SUN GAMING

  14. Slide 14: Casinos - Comparable Segmental Analysis (Rm)

    Tsogo Sun Casinos - Comparable Segmental Analysis (Rm) Income Ebitdar(1) % % HY1 F’20 HY1 F’19(2) Change HY1 F’20 HY1 F’19(2) Change Gauteng 2 447 2 420 1 932 936 - KZN 1 180 1 115 6 476 448 6 Mpumalanga 404 378 7 138 127 9 Western Cape 305 283 8 113 100 13 Eastern Cape 148 152 (3) 38 41 (7) Free St

  15. Slide 15: Casinos - Opportunities

    Tsogo Sun Casinos - Opportunities  Reduction in operational costs  Head office and casino operating efficiency  Capital expenditure focus and process  Montecasino Hi Hotel  Western Cape Metropole relocation 15

  16. Slide 16: Galaxy Bingo

    Y TSOGO SUN GAMING Galary BINGO GAMING e ENTERTAINMENT 16

  17. Slide 17: Galaxy Bingo - Opportunities

    Galaxy Bingo - Opportunities  21 operating Bingo sites  Two additional licenses to be rolled out  Site opened in Pinetown during April 2019  Expansions and redevelopments  Improving margins  Investment in improved product 17

  18. Slide 18: VSlots

    Y TSOGO SUN GAMING 18

  19. Slide 19: VSlots - Route Operator Opportunities

    VSlots - Route Operator Opportunities  Approximately 6,000 LPM’s at 1,100 sites nationally  Increase in number of LPM sites net of sites closed  Replacing unprofitable and underperforming sites  Rolling out improved product  Regulatory change in maximum bet and payout 19

  20. Slide 20: Thank You

    eee GAMING

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