Slide 1: 2021 Audited Summary Group Financial Results
2021 AUDITED SUMMARY GROUP FINANCIAL RESULTS for the year ended 31 December 2021
Slide 2: Contents
CONTENTS 01 Strategic focus and key highlights 02 Operational review 03 Financial review 04 Outlook and strategic focus 05 Supplementary information Sun City - The Cascades 1
Slide 3: Strategic focus and key highlights
The Table Bay Hotel 01 Strategic focus and key highlights 2
Slide 4: Delivering against our strategy
01 Strategic focus and key highlights DELIVERING AGAINST OUR STRATEGY Focused on South African market for • Gaming income, making up 85% of group income, proved resilient and rebounded strongly gaming and casino post exit from Latam • Defended and grew market share for most key domestic urban casino
Slide 5: Key highlights: R7.8 billion income, R1.7 billion adjusted EBITDA
01 Strategic focus and key highlights CONTINUING CONTINUING GROUP BUSINESS INTERRUPTION GROUP INCOME ADJUSTED EBITDA INSURANCE CLAIM R7.8 billion R1.7 billion R522 million 29% 80% Excludes insurance receipts of R522m TOTAL ANNUALISED TOTAL GROUP DEBT AVAILABLE SUSTAINABLE COST SAVINGS (excluding lea
Slide 6: Operational review
Boardwalk, Port Elizabeth 02 Operational review 5
Slide 7: Income trend
02 Operational review INCOME TREND R million Initial extended hard lockdown Second wave Third wave Fourth wave Alert level 5 Adjusted Adjusted driven by Alert level 3 Alert level 4 Omicron 1 000 956 906 921 890 818 800 743 758 744 735 698 706 687 687 639 780 736 593 562 683 600 543 532 634 514 624 6
Slide 8: Casinos
02 Operational review CASINOS Key takeaways PERFORMANCE HIGHLIGHTS • Income up 22% to R4.7 billion - Curfew lifted at the end of December - Casino income reached a high of 81% of 2019 in October 2021 • Adjusted EBITDA increased by 60% to R1.4 billion, at an adjusted EBITDA margin of 30.4% • Casino m
Slide 9: Sun Slots
02 Operational review SUN SLOTS Key takeaways NUMBER OF LPMs NUMBER of SITES 4 481 4 652 913 933 4 328 840 882 PERFORMANCE HIGHLIGHTS 4 040 766 3 720 • Income increased by 40% to R1.2 billion - Market proved resilient. Quick to open sites in response to demand - 99% of the LPMs operated during the y
Slide 10: SunBet | Well positioned for growth
02 Operational review SUNBET | Well positioned for growth Strong fundamentals South Africa bookmaker and online gaming market GROWTH OF SOUTH AFRICAN BOOKMAKER INCOME* - SPORTS BETTING (R million) Sun International brand and presence CAGR: 31.8% 9 643 ESTIMATED SIZE 7 071 OF ONLINE MARKET 5 244 Expl
Slide 11: Resorts and hotels
02 Operational review RESORTS AND HOTELS Key takeaways PERFORMANCE HIGHLIGHTS • Income increased by 39% to R1.6 billion - Sun Vacation Club at Sun City performed well achieving occupancies of 73% excluding closed periods • Adjusted EBITDA loss of R56 million compared to loss of R158 million in 2020
Slide 12: Financial review
Sun City - Valley of the Waves 03 Financial review 11
Slide 13: Segmental highlights
03 Financial review SEGMENTAL HIGHLIGHTS Income contribution Adjusted EBITDA contribution R million 2021 2020 % 2021 2020 % Casino operations* 4 720 3 857 22 1 433 894 60 Alternate gaming 1 424 1 023 39 311 248 25 Total gaming 6 144 4 880 26 1 744 1 142 53 Resorts and hotels** (incl Sun Vacation Clu
Slide 14: South African segmental review
03 Financial review SOUTH AFRICAN SEGMENTAL REVIEW Income Adjusted EBITDA Depreciation and amortisation Adjusted operating profit/(loss) R million 2021 % 2020 2021 % 2020 2021 % 2020 2021 % 2020 Casino operations 4 720 22 3 857 1 433 60 894 (550) 6 (585) 883 >100 309 GrandWest 1 281 25 1 024 399 45
Slide 15: Borrowings
03 Financial review BORROWINGS GROUP DEBT (excluding IFRS 16 lease liabilities) 13 327 R million Debt IFRS 16 lease liability Total debt 11 069 South Africa 6 389 869 7 258 Nigeria 700 - 700 7 630 7 556 7 089 Shareholder loans 1 078 - 1 078 Sun International’s portion of shareholder loans (378) - (3
Slide 16: South African cash flow
03 Financial review SOUTH AFRICAN CASH FLOW R million 2 232 (337) Capex of 7% of income 11 including refurbishments (527) R1.3 billion in free cash flow generation after working capital, tax and capex 1 379 (543) (29) 807 (158) (101) (574) 273 247 Generated Working Tax Capex Free Interest Other inve
Slide 17: Capital expenditure and allocation priorities
03 Financial review CAPITAL EXPENDITURE AND ALLOCATION PRIORITIES SOUTH AFRICA CAPEX R million 2021 2020 2019 Capex as a percentage of income South African operations Refurbishment and ongoing 7.5% Sun City 189 103 249 6.8% GrandWest 67 61 108 6.4% Sun Slots 87 47 93 Sibaya 42 51 86 Carnival City 35
Slide 18: Outlook and strategic focus
Sun Time Square 04 Outlook and strategic focus 17
Slide 19: Key takeaways and outlook
04 Outlook and strategic focus KEY TAKEAWAYS AND OUTLOOK • January and February 2022 gaming income in line with 2019 Strong recovery • Demonstrating strong income recovery to more normal levels on lifting of restrictions under lifted restrictions • Casino capacity still restricted • Sun Slots exceed
Slide 20: Strategic focus
04 Outlook and strategic focus STRATEGIC FOCUS OMNI-CHANNEL STRATEGY Uniquely offering holistic casino, slots, online gaming and hospitality customer proposition, underpinned by established MVG loyalty programme ENABLED BY: Customer centricity Technology Operational excellence People and culture 19
Slide 21: Supplementary information
Wild Coast Sun 05 Supplementary information 20
Slide 22: Financial overview for the year
05 Supplementary information FINANCIAL OVERVIEW FOR THE YEAR R million 2021 % 2020 Income 7 812 29 6 054 Adjusted EBITDA 1 685 80 936 Adjusted EBITDA margin 22% 47 15% Adjusted operating profit/(loss) 822 >100 15 Foreign exchange loss (2) 97 (58) Net interest (564) 40 (939) Adjusted profit/(loss) be
Slide 23: Earnings reconciliation
05 Supplementary information EARNINGS RECONCILIATION 31 December 31 December 31 December 31 December R million 2021 2020 Cents earnings/(loss) per share 2021 2020 Profit/(loss) attributable to ordinary shareholders 263 (1 829) Earnings/(loss) per share Net loss/(profit) on disposal of property, plan
Slide 24: Group effective tax rate
05 Supplementary information GROUP EFFECTIVE TAX RATE R million South Africa Nigeria and Sun Chile Group continuing Profit/(loss) before tax continuing operations 661 (87) 574 Preference share funding (interest) 94 - 94 Depreciation on non-qualifying buildings 62 - 62 Fair value adjustments 3 - 3 Ot
Slide 25: Borrowings by subsidiary
05 Supplementary information BORROWINGS BY SUBSIDIARY R million Borrowings IFRS 16 lease liability Total borrowings Minority shares Attributable to Sun International South Africa 6 389 869 7 258 1 286 5 972 SunWest 521 108 629 221 408 Carnival City 484 3 487 26 461 Sibaya 212 3 215 20 195 Boardwalk
Slide 26: Group structure
05 Supplementary information GROUP STRUCTURE Licensed by gaming board South Africa Economic interest %* Slots Tables Rooms Gauteng Carnival City 91.2 1 400 43 105 The Maslow 100.0 - - 281 Sun Time Square 82.3 1 721 60 238 Western Cape GrandWest 61.6 2 320 82 39 The Table Bay Hotel 61.6 - - 329 Golde
Slide 27: Analysis of minority shareholders
05 Supplementary information ANALYSIS OF MINORITY SHAREHOLDERS Profit after tax % Shareholding Minority portion including SIEST R million 2021 2020 2021 2020 2021 2020 South Africa 231 (782) (89) 57 SunWest 141 50 61.6 61.6 (54) (19) Sibaya 174 107 87.2 87.2 (22) (14) Carnival City 34 (12) 91.2 91.2