Sun International Limited · JSE:SUI
Sun International — Corporate Update (June 2020)
20 slides from Sun International's corporate update, Jun 24, 2020
Slide 1: Business Update 24 June 2020
Sun International Limited Business Update 24 June 2020
Slide 2: Background
Background Situation prior to Covid-19 Continuous margin improvement over the past few years Reduced tax leakage Several operations restructured Liquidity position significantly improved with strong cash generation 2020 trading to mid March reflecting similar trends to 2019 with low revenu
Slide 3: Sun International's response to the COVID-19 pandemic
Sun International’s response to the COVID-19 pandemic Supported government’s initiatives to “flatten the curve” Ensured effective engagement with government, regulators, partners, customers and staff Applied on behalf of employees in respect of the UIF TERS benefits The SIL Board and Management’s re
Slide 4: Operational Review
Operational Review un International
Slide 5: Operational start up plans
Operational start up plans Announcement on 17 June 2020 that casinos, restaurants, hotels and resorts will be allowed to open Regulations still need to be published Inter-provincial travel still restricted which will impact the opening of certain properties, e.g. Sun City and Wild Coast Sun
Slide 6: Restrictions on operations
Restrictions on operations We anticipate Advanced Alert level 3 regulations under the Disaster Management Act 57 of 2002 to be published incorporating restrictions relating to the resumption of trading of casinos, conference venues, restaurants and hotels which may include restrictions relating to
Slide 7: Safety measures
Sg International Safety measures
Slide 8: Sun Slots update
Sun Slots update Unless regulations state otherwise – given the fact that • Limited trading hours for each primary business category that has an LPM licence attached to it our sites are currently permitted • COVID-19 health and safety protocols pertaining to the primary business to sell food and or
Slide 9: Closure and restructure of certain operations
Closure and restructure of certain operations Anticipated slow start to trading Hotel and resort properties will be under pressure for some time Significant restructure of our hotel and resort properties planned The restructure will be Limited restructure of our gaming operations. However we
Slide 10: Latam update
Latam update Chile • Initially operations were closed until 28 March however lockdown was subsequently extended with no date for opening announced at this stage • Following discussions with the union and staff, salaries were reduced by 50% • The government is also offering support to companies and e
Slide 11: Liquidity Position
Liquidity Position un International uw
Slide 12: Shoring up the group's liquidity position
Shoring up the group’s liquidity position Focused on preserving our liquidity position • Paid 40% of normal TCOE in April 2020 plus TERS benefit to all employees other than for certain essential services such as security • Paid the higher of 40% or the TERS benefit in May and June 2020 • Most servic
Slide 13: Costs during lockdown
Costs during lockdown The table summarises the approximate April 2020 May 2020 June 2020 Rm cash and amortised costs incurred for payroll and other expenses (excluding South Africa 143 110 110 depreciation and amortisation) during April Payroll 73 40 40 and May and the anticipated costs for June 2
Slide 14: Proposed Rights Offer
Proposed Rights Offer un International 14
Slide 15: Proposed rights offer
Proposed rights offer • Uncertain environment The COVID-19 • Restricted trading conditions pandemic is having a material negative • The rationale for the Proposed Rights Offer is to: impact on the macroeconomic o Improve Sun International’s liquidity position; and environment with o Strengthen its b
Slide 16: Terms and indicative timelines
Terms and indicative timelines Quantum R1.2 billion Underwriter • In discussion 12 June – with potential resolution 14 July – 11 August – underwriters circular Declaration Rights offer Issue of posted date period securities Underwritten • As above amount Pricing To be announced 13 July – 23 July – R
Slide 17: Key terms been negotiated with lenders
Key terms been negotiated with lenders Key to obtaining the support for the proposed rights offer from shareholders was the package of concessions negotiated with lenders Deferrals • Capital payments • Capital payments for 30 June 2020 to March 2021 deferred, resuming on 30 June 2021 • The waived am
Slide 18: Conclusion
Conclusion un International 18
Slide 19: Update on other strategic initiatives
Update on other strategic initiatives Acquisitions • 30% interest in Sun Slots – In discussions with GPI Disposals • Steady progress with the proposed disposals of: o Nigeria o eSwatini Online gambling • Sunbet will commence offering Lucky Numbers, Bet Games and Live Games from July 2020 • Well posi
Slide 20: Conclusion
Conclusion • Costs well managed during lockdown • Opportunity to realise cash from property and business sales • Significant savings will be achieved through proposed restructuring • Significant savings identified in security, house keeping, cleaning, communication and other areas Sun International