Southern Sun Limited · JSE:SSU
Southern Sun — FY2025 Earnings Presentation
28 slides from Southern Sun's earnings presentation, May 2025
Slide 1: Southern Sun Investor Presentation May 2025
F’25 ▪ Income up 9% to R6.6bn ▪ EBITDAR up 14% to R2.2bn ▪ Adjusted HEPS up 34% to 75.6c ▪ Dividends per share up 100% to 25.0c SOUTHERN SUN INVESTOR PRESENTATION MAY 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 OVER HOTELS & RESORTS 90 in South Africa, 16,000 rooms OVER Africa, the Seychelles and Total Total Middle East from luxury to economy Hotels Rooms Luxury Western Cape 17 3 352 KwaZulu-Natal 14 2 869 Gauteng 30 5 167 Eastern Cape 5 772 Full Service Mpumalanga 8 675 Economy Co
Slide 6: Operated Portfolio
OPERATED PORTFOLIO Luxury 54 Arabella W garh HOTEL cores _ A) a Le SANDTON SUN SANDTON TOWERS MOUNTGRACE Quy tint Si. a Y Southern Sun Full Service Economy ©southernsun ©) stayeasy Y Southern Sun ‘SUNL RESORTS SUN SQUARE Y Garden Court Convention Centre SANDTON CONVENTION CENTRE lo
Slide 7: Cash Flow (Rm)
CASH FLOW (Rm) F’25 F’24 Ebitdar per income statement 2 169 1 902 Property rentals (349) (340) Move in working capital adjusted for non-cash and exceptional items 37 116 Dividend income from associate 11 18 Cash generated from operations 1 868 1 696 Net finance costs paid (excluding IFRS16 adjustmen
Slide 8: Cash Flow (Rm) Continued
CASH FLOW (Rm) CONTINUED F’25 F’24 Free cash inflow from operations (b/f) 952 970 Dividends paid (168) - Disposal proceeds 3 27 Investment activities – expansion capex (45) (180) Share buy-back - (617) Pre-opening costs (13) - Associates, Loans and investments 26 107 Net cash surplus 755 307 Opening
Slide 9: Investment Activities (Rm)
INVESTMENT ACTIVITIES (Rm) F’25 F’24 Investment activities 45 180 Umhlanga land acquisition 31 6 Beverly Hills professional fees 9 2 Acquisition of Sunswop units 5 5 Victoria Junction – acquisition of sectional title units - 7 Birchwood acquisition - 160 Investment activities (c/f) 45 180 9 9
Slide 10: Investment Activities (Rm) Continued
INVESTMENT ACTIVITIES (Rm) CONTINUED F’25 F’24 Investment activities (b/f) 45 180 Maintenance capex 450 298 Major projects 177 54 Southern Sun Cullinan 47 32 Southern Sun Rosebank 46 3 Southern Sun Sandton 31 10 Radisson Blu Gautrain 7 9 Paradise Sun 46 - Ongoing maintenance capex 273 244 Western Ca
Slide 11: Interest Bearing Debt (Rm)
INTEREST BEARING DEBT (Rm) F’25 F’24 External debt – Offshore (US$ based) 453 496 External debt (Rand based) 210 1 170 Prepaid borrowing costs (1) (3) Gross IBD 662 1 663 Cash on hand – Hotels SA (209) (372) Cash on hand – Hotels Offshore (187) (267) Net IBD 266 1 024 Analysed as: – Hotels SA - 796
Slide 12: Debt Facilities, Liquidity and Covenants
DEBT FACILITIES, LIQUIDITY AND COVENANTS ▪ Disciplined cost control has generated strong cash flows over the year, reducing interest-bearing debt net of cash to R266 million at 31 March 2025, which is R758 million less than the 31 March 2024 balance of R1.0 billion ▪ The group generated free cash fl
Slide 13: Review of Operations
REVIEW OF OPERATIONS ▪ Southern Sun has achieved another record year of profits driven by robust trading in the Western Cape and notable growth in Gauteng • The successful refurbishments of Southern Sun Cullinan and Sandton Towers – reopened in July 2024 and December 2024, respectively – along with
Slide 14: Income Statement (Rm)
INCOME STATEMENT (Rm) % F’25 F’24 Change Income 6 609 6 047 9 Rooms revenue 4 414 4 008 10 Owned stats F’25 F’24 Food & beverage revenue 1 593 1 502 6 Occupancy (%) 60.8 58.6 Property rental income 272 229 19 Average room rate (R) 1 463 1 388 Other income 330 308 7 RevPar (R) 890 813 Overheads (4 44
Slide 15: Reconciliation to Adjusted Headline Earnings (Rm)
RECONCILIATION TO ADJUSTED HEADLINE EARNINGS (Rm) F’25 F’24 % Net of tax Net of tax Change Profit attributable to equity holders of the company 1 024 856 20 (Profit)/loss on disposal of PP&E (1) 2 Fair value gain on investment properties (83) (47) Net impairment of property, plant and equipment 129
Slide 16: Review of Operations
REVIEW OF OPERATIONS ▪ Total income for the group has increased by 9% to R6.6 billion and comprises rooms revenue growth of 10% to R4.4 billion (2024: R4.0 billion) supported by average room rate (ARR) growth of 5% (pre-frequentGuest adjustment) and an increase in occupancy of 2.2pp to 60.8% for the
Slide 17: Review of Operations
REVIEW OF OPERATIONS ▪ Amortisation and depreciation for the year ended 31 March 2025 of R423 million (2024: R369 million) includes depreciation of capitalised leases of R139 million (2024: R85 million) • Amortisation and depreciation excluding depreciation of capitalised leases has remained flat co
Slide 18: Review of Operations
REVIEW OF OPERATIONS ▪ The share of profit from associates of R99 million (2024: R80 million) includes the group’s share of exceptional gains recognised by the associates of R29 million (2024: R28 million): • Fair value gain on investment properties of R32 million (2024: R32 million) • Profits on di
Slide 19: Review of Operations
REVIEW OF OPERATIONS ▪ The income tax expense for the year ended 31 March 2025 of R420 million (2024: R327 million) is in line with the increase in profits excluding the impact of exceptional items – certain of the group’s operating subsidiaries remain in assessed loss positions; however, these are
Slide 20: Quarterly Performance (Rm)
QUARTERLY PERFORMANCE (Rm) Q1 Q2 H1 Q3 Q4 H2 Total Income F’25 1 390 1 576 2 966 1 913 1 730 3 643 6 609 F’24 1 326 1 464 2 790 1 733 1 524 3 257 6 047 Change on F’24 (%) 5 8 6 10 14 12 9 F’25 Occupancy % 55.3 62.6 58.9 66.2 59.1 62.7 60.8 F’24 Occupancy % 54.2 59.6 56.9 63.6 56.8 60.2 58.6 Ebitdar
Slide 21: Segmental Analysis (Rm)
SEGMENTAL ANALYSIS (Rm) Income Ebitdar Ebitdar margin % F’25 F’241 F’25 F’241 F’25 F’241 Sandton Consortium 663 661 211 209 32 32 SA Portfolio 5 632 5 032 1 977 1 677 35 33 Western Cape 2 335 1 990 1 053 836 45 42 KwaZulu-Natal 997 1 037 247 302 25 29 Gauteng 1 605 1 354 491 363 31 27 Other 695 651
Slide 22: Regional Review
REGIONAL REVIEW Gauteng ▪ The domestic and international corporate transient travel segments have recovered well over the interim period with demand for conferencing and events bolstering hotels located in prime business hubs near OR Tambo International Airport or Sandton Convention Centre ▪ By leve
Slide 23: Regional Review
REGIONAL REVIEW KwaZulu-Natal ▪ The group’s hotels located on the Durban beachfront are geared towards groups and transient business from corporates (including sporting bodies) and government, and demand from these segments slowed in the lead-up to, and immediately post, the national elections in Ma
Slide 24: Regional Review
REGIONAL REVIEW Other ▪ The Other segment includes hotels situated in Mpumalanga, Eastern Cape, Kimberley, Bloemfontein and Polokwane ▪ Like in Durban, these hotels are weighted towards corporate (including sporting bodies) and government groups and transient business both of which were negatively i
Slide 25: Prospects
PROSPECTS ▪ The complete cost restructuring undertaken during 2021 enabled the group to deliver 14% Ebitdar growth from 9% income growth ▪ The recovery of occupancies to the group’s long-term average, especially in regions that have underperformed in the current year, presents an opportunity in the
Slide 26: 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 ▪ Refurbishment plans scheduled for the 2026 financial year are progressing for several other hotels with var
Slide 27: Notes
NOTES Y Southern Sun 27
Slide 28: Thank You
Follow the Sun THANK THANK YOUYOU