Southern Sun Limited · JSE:SSU
Southern Sun — H1 F2026 Earnings Presentation
32 slides from Southern Sun's earnings presentation, November 2025
Slide 1: Southern Sun Investor Presentation November 2025
F’26H1 Income 5% to R3.1bn SA 8% to R3.0bn EBITDAR at R818m SA 6% to R827m Adjusted HEPS at 24.9c Net debt at R481m SOUTHERN SUN INVESTOR PRESENTATION NOVEMBER 2025
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
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
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
Slide 5: Southern Sun at a Glance
SOUTHERN SUN AT A GLANCE Total Total Hotels Rooms Western Cape 17 3 352 KwaZulu-Natal 14 2 869 Gauteng 28 4 987 Eastern Cape 5 772 Mpumalanga 8 675 Other 6 715 South Africa 78 13 370 Mozambique 3 527 Zambia 3 414 Tanzania 1 152 Seychelles 1 80 UAE 1 353 Offshore 9 1 526 Marriott 1 483 Radisson 2 397
Slide 6: Operated Portfolio
OPERATED PORTFOLIO Luxury 54 Arabella ON oe oe O) BEVERLY HILLS INTERCONTINENTAL. JONANNESBURG O.8,TANBO AIRPORT SANDTON MOUNT GRACE SUN & TOWERS mores ere eu e- Y Southern Sun Full Service Y Southern Sun HOTELS Y SouthernSun RESORTS Y Garden Court Economy OU stayeasy Convention Centre SANDTON CONVE
Slide 7: Cash Flow (Rm)
CASH FLOW (Rm) F’26 H1 F’25 H1 F’25 YE Ebitdar per income statement 818 822 2 169 Property rentals (185) (170) (349) Move in working capital adjusted for non-cash and exceptional items (22) (81) 37 Dividend income from associate 6 7 11 Cash generated from operations 617 578 1 868 Net finance costs p
Slide 8: Cash Flow (Rm) Continued
CASH FLOW (Rm) CONTINUED F’26 H1 F’25 H1 F’25 YE Free cash inflow from operations (b/f) 51 154 952 Dividends paid (339) (167) (168) Share buy-back (79) - - Disposal proceeds 66 1 3 Investment activities – expansion capex (3) (3) (45) Pre-opening costs - (10) (13) Associates, loans and investments 71
Slide 9: Investment Activities (Rm)
INVESTMENT ACTIVITIES (Rm) F’26 H1 F’25 H1 F’25 YE Investment activities 3 3 45 Umhlanga land acquisition - - 31 Beverly Hills professional fees - 3 9 Acquisition of Sunswop units 3 - 5 Investment activities (c/f) 3 3 45 9 9
Slide 10: Investment Activities (Rm) Continued
INVESTMENT ACTIVITIES (Rm) CONTINUED F’26 H1 F’25 H1 F’25 YE Major projects 260 89 177 Southern Sun Cullinan 22 39 47 Southern Sun Rosebank 7 25 46 Southern Sun Sandton 8 22 31 Southern Sun Mbombela 28 - - Southern Sun Newlands 22 - - Mount Grace Hotel & Spa 30 - - Birchwood Hotel & OR Tambo Confere
Slide 11: Investment Activities (Rm) Continued
INVESTMENT ACTIVITIES (Rm) CONTINUED F’26 H1 F’25 H1 F’25 YE Investment activities (b/f) 3 3 45 Maintenance capex 370 215 450 Major projects (b/f) 260 89 177 Ongoing maintenance capex 110 126 273 Western Cape 21 26 65 KwaZulu-Natal 31 33 50 Gauteng 24 37 84 Other 22 24 35 Offshore hotels 2 2 11 Manc
Slide 12: Interest Bearing Debt (Rm)
INTEREST BEARING DEBT (Rm) F’26 H1 F’25 H1 F’25 YE External debt – Offshore (US$ based) 1 427 424 453 External debt (Rand based) 700 1 090 210 Prepaid borrowing costs (1) (2) (1) Gross IBD 1 126 1 512 662 Cash on hand – SA (514) (289) (209) Cash on hand – Offshore (131) (228) (187) Net IBD 481 995 2
Slide 13: Interim Results Review
INTERIM RESULTS REVIEW The group delivered a resilient performance in the first half of the 2026 financial year, achieving 5% income growth to R3.1 billion (F’25H1: R3.0 billion), driven primarily by strong domestic trading where South African operations rose 8% to R3.0 billion – this performance
Slide 14: Cash Flow and Capital Expenditure
CASH FLOW AND CAPITAL EXPENDITURE Despite these headwinds, South African Ebitdar increased 6% to R827 million (F’25H1: R783 million) underscoring the strength of the domestic portfolio – in contrast, offshore operations posted a R9 million loss (F’25H1: R39 million profit), resulting in group Ebit
Slide 15: Major Refurbishment Projects
MAJOR REFURBISHMENT PROJECTS Southern Sun Rosebank Southern Sun Mbombela Southern Sun Newlands Mount Grace Hotel & Spa 15 15
Slide 16: Major Refurbishment Projects
MAJOR REFURBISHMENT PROJECTS Paradise Sun Paradise Sun Paradise Sun Paradise Sun 16 16
Slide 17: Debt Facilities, Liquidity and Covenants
DEBT FACILITIES, LIQUIDITY AND COVENANTS On 30 September 2025, the group successfully refinanced its debt package into two-year revolving credit facilities maturing on 30 September 2027, with an option to extend for a further 12 months to 30 September 2028 In the absence of significant near-term
Slide 18: Income Statement (Rm)
INCOME STATEMENT (Rm) % F’26 H1 F’25 H1 Change Income 3 122 2 966 5 Rooms revenue 2 034 1 950 4 Owned stats F’26 H1 F’25 H1 Food & beverage revenue 807 760 6 Occupancy (%) 59.1 58.9 Property rental income 119 114 4 Average room rate (R) 1 385 1 338 Other income 162 142 14 RevPar (R) 818 789 Overhead
Slide 19: Reconciliation to Adjusted Headline Earnings (Rm)
RECONCILIATION TO ADJUSTED HEADLINE EARNINGS (Rm) F’26 H1 F’25 H1 % Net of tax Net of tax Change Profit attributable to equity holders of the company 329 332 (1) Loss/(profit) on disposal of PP&E 4 (1) Pre-opening costs - 13 Derecognition of derivative financial instruments - (6) Share of associates
Slide 20: Quarterly Performance (Rm)
QUARTERLY PERFORMANCE (Rm) Q1 Q2 H1 Income F’26 1 485 1 637 3 122 F’25 1 390 1 576 2 966 Change on F’25 (%) 7 4 5 F’26 Occupancy % 55.8 62.4 59.1 F’25 Occupancy % 55.3 62.6 58.9 Ebitdar F’26 336 482 818 F’25 336 486 822 Change on F’25 (%) - (1) - Adjusted earnings F’26 119 215 334 F’25 116 218 334 C
Slide 21: Segmental Analysis (Rm)
SEGMENTAL ANALYSIS (Rm) Income Ebitdar Ebitdar margin % F’26 H1 F’25 H1 F’26 H1 F’25 H1 F’26 H1 F’25 H1 Sandton Consortium 368 318 111 99 30 31 SA Portfolio 2 656 2 477 757 716 29 29 Western Cape 939 861 317 277 34 32 KwaZulu-Natal 526 490 118 120 22 24 Gauteng 815 785 219 232 27 30 Other 376 341 10
Slide 22: Regional Review
REGIONAL REVIEW Gauteng While corporate and government demand was subdued in Q1 due to delayed budget approvals and Easter timing, Q2 saw recovery driven by sporting events The Sandton Consortiums hotels were supported by strong conferencing demand and the reopening of Sandton Towers post-refurb
Slide 23: Regional Review
REGIONAL REVIEW KwaZulu-Natal Durban beachfront hotels rely heavily on consistent conferencing and group demand, and the group continues to collaborate with Durban Tourism and the Convention Bureau to unlock opportunities uMhlanga remains a strong performer and a key growth node, with room stock
Slide 24: Regional Review
REGIONAL REVIEW Other The Other segment includes hotels situated in Mpumalanga, Eastern Cape, Kimberley, Bloemfontein and Polokwane which were supported by G20-related conferences and sporting events in Q2 Offshore This segment includes hotels located in Mozambique, Seychelles, Zambia and Tanzan
Slide 25: Review of Operations
REVIEW OF OPERATIONS Property and equipment rental expenses: • Totalled R57 million (F’25H1: R66 million), representing the variable portion of lease payments • Excluding the impact of IFRS 16, cash rent for the six months ended 30 September 2025 amounted to R185 million, up from R170 million in t
Slide 26: Review of Operations
REVIEW OF OPERATIONS The group’s UK investments delivered a lower contribution, declining from R21 million to R16 million for the six months ended 30 September 2025 – this reduction reflects the smaller IHL portfolio following property disposals and subdued performance from the managed RBH Hospita
Slide 27: Prospects
PROSPECTS Paradise Sun’s relaunch has been well received, trading at strong Oct’25 Sep’25 Trading update occupancy and ARR levels, with momentum expected to continue into H2 YTD YTD Income 3 862 3 122 In South Africa, major events including the G20 conference taking place in November 2025, repea
Slide 28: 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 The group continues to prioritise refurbishments and targeted expansion to capture demand in high-growth ma
Slide 29: Strategy
STRATEGY The group is also pursuing expansion opportunities in the Western Cape and KwaZulu-Natal • In Cape Town, we are advancing a proposed joint venture to develop two landmark mixed-use properties in the Foreshore precinct • In KwaZulu-Natal, the group is engaged in the Southern Sun Hotels & R
Slide 30: Notes
NOTES Y Southern Sun 30
Slide 31: Notes
NOTES Y Southern Sun 31
Slide 32: Follow the Sun – Thank You
Follow the Sun THANK THANK YOUYOU