Slide 1: Results Presentation
Sx International RESULTS PRESENTATION
Slide 2: Disclaimer
DISCLAIMER Certain statements in this document may statements speak only as at the date of this fairness, accuracy or completeness of the constitute ’forward looking statements’. document. You are cautioned not to place information (including data obtained from Such forward looking statements reflec
Slide 3: Group structure
Group structure Economic interest % Slots Tables Rooms South Africa Gauteng Carnival City 91 1 753 53 105 Morula 100 477 10 73 Maslow 100 - - 281 Western Cape GrandWest 61 2 562 59 39 Table Bay 61 - - 329 Worcester 61 220 16 98 Sunbet 100 - - - Kwa-Zulu-Natal Sibaya 63 1 210 48 154 Limpopo Meropa 68
Slide 4: The period under review
The period under review • Gaming revenue under pressure in South Africa • Disappointing performance from International VIP Gaming business • Food & Beverage margins remain low • Cost control – increases well below inflation • Acquisition of further 19.9% interest in GPI Slots • Mixed performance fro
Slide 5: Group revenue, EBITDA and earnings highlights
GROUP GROUP REVENUE EBITDA 31% to 24% to R7.7 R1.9 billion billion EARNINGS PER DILUTED HEPS SHARE ADJUSTED HEPS 124% to 162% to 35% to 107 cents 295 cents 223 cents 5
Slide 6: Financial Review
Wig TEC pene FINANCIAL REVIEW
Slide 7: Financial overview
Financial overview The income statement below includes adjusted headline earnings adjustments: R million 31 Dec 2016 % 31 Dec 2015 Revenue 7 670 31 5 837 EBITDA 1 900 24 1 534 Operating profit 1 216 21 1 004 Foreign exchange (loss)/profit (2) (111) 18 Net interest (476) (46) (326) Profit before tax
Slide 8: Adjustment to headline earnings
Adjustment to headline earnings • Impairment of R208m of Carousel and Morula assets (R156m after tax) – impact of Time Square • Impairment of R61m (R34m attributed to the group) of the Sun Nao Casino assets • Reduction in fair value of put options of R247m • Interest on debt raised for Time Square s
Slide 9: Segmental Review
SEGMENTAL REVIEW 9
Slide 10: Summarised segmental review
Summarised segmental review South Africa Latam Nigeria Total 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec R million 2016 2015 2016 2015 2016 2015 2016 2015 Revenue 5 149 5 115 2 451 2 371 70 115 7 670 7 601 EBITDA 1 279 1 405 622 614 (1) 18 1 900 2 037 Operating profit 845 980 389 379 (13
Slide 11: Revenue contribution by category and geography
Revenue contribution by category and geography Category Geography 3.0% 0.9% 9.7% (3.0%) (9.2%) (1.5%) 7.9% 32.0% (7.2%) (31.2%) 7.0% (6.4%) -0.4% (-0.1) 67.1% 72.8% (67.3%) (74.3%) Casino IB LPM Rooms Food & Beverage Other South Africa Latam Nigeria ( ) prior year – on a proforma basis 11
Slide 12: South Africa segmental review
South Africa segmental review Revenue EBITDA Operational profit 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec R million 2016 2015 2016 2015 2016 2015 GrandWest 1 105 1 129 440 453 369 385 Sun City 896 821 78 107 (20) 18 Sun City – IB (30) (11) (55) (19) (55) (19) Sun City – vacation club accounting adju
Slide 13: Latin America segmental review
Latin America segmental review Revenue EBITDA Operational profit 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec R million 2016 2015 2016 2015 2016 2015 Monticello 952 956 262 277 193 211 Dreams SCJ licences 809 781 304 289 285 262 Dreams Municipal licences 432 435 159 160 132 130 Central office - - (63)
Slide 14: Minority share of earnings
Minority share of earnings 2016 2015 Profit after Minority Minority Profit after Minority Minority R million tax interest Adj HE tax interest Adj HE South Africa SunWest 248 38.4% 95 256 28.4% 72 Afrisun KZN 101 37.4% 38 107 37.4% 40 Afrisun Gauteng 53 8.8% 5 78 8.8% 7 Emfuleni (51) 18.4% (9) (3) 18
Slide 15: Capex, Cash & Debt Management
CAPEX CASH & DEBT MANAGEMENT 15
Slide 16: Capex and cash
Capex and cash Capital expenditure incurred during the year R million Expansionary Time Square 1 164 Sun City 257 Dreams Latam 28 Other expansions 115 1 564 Refurbishment Sun City 18 Carnival City 26 Sibaya 5 Other refurbishments 11 60 Other ongoing asset replacement* 594 Total capital expenditure 2
Slide 17: Debt management
Debt management Share of debt The increase in borrowings is R million Total Debt Minorities Sun International primarily attribute to: South Africa Subsidiaries 3 137 917 2 220 • Purchase of a further 20% Time Square 3 313 828 2 485 interest in GPI Slots Central Office 4 167 - 4 167 (R262 million) 10
Slide 18: Time Square Update
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Slide 19: Time Square overview
Time Square overview Budget R4 225m (excl R747 settlement payments) Spend to date R2 425m Settlements with Peermont and Goldrush R 706m R3 131m FY17e Capex forecast R1 371m FY18e Capex forecast R429m Estimated completion date Casino: April 2017 Arena: September 2017 Hotel: March 2018 Key statistics
Slide 20: Time Square Casino
Time Square Casino Se International
Slide 21: Time Square Casino
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Slide 22: Time Square Casino
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Slide 23: International VIP Gaming Business
INTERNATIONAL VIP GAMING BUSINESS 23
Slide 24: International VIP gaming business
International VIP gaming business Actual Actual Theoretical R million 2016 2016 2016 Turnover 3 161 6 006 6 006 Win percentage 0.38% 0.28% 1.35% Gross revenue 12 17 81 Less rebate (23) (47) (48) (11) (30) 33 Costs (8) (25) (25) EBITDA (19) (55) 8 Number of guests 28 69 24
Slide 25: Strategic Update
Best | ra % MDS a RP) | a STRATEGIC UPDATE
Slide 26: Key strategic priorities – South Africa
Key strategic priorities – South Africa • Macro economic conditions • Underperformance of large properties • Balance sheet strengthening - GrandWest, Sibaya, Carnival City, Boardwalk - Dividend on hold • Time Square - Only essential capex - Open casino and complete rest of development • Sun City • L
Slide 27: Key strategic priorities – Latam
Key strategic priorities – Latam • Latam IPO and Put Option - Minority shareholder called for IPO - 6 months to IPO • Under performance of Ocean Sun and Sun Nao - Ocean Sun banking restrictions partly lifted - 3 years left of Sun Nao rental • Municipal licences in Chile - Extended to 2018 • SCJ lice
Slide 28: Thank You
THANK YOU 28