Tsogo Sun Limited · JSE:TSG
Tsogo Sun — Tsogo Sun Gaming — FY2020 Earnings Presentation
17 slides from Tsogo Sun's earnings presentation, June 2020
Slide 1: Tsogo Sun Gaming Investor Presentation Year End F'20
TSOGO SUN GAMING INVESTOR PRESENTATION YEAR END F’20 1 June 2020
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 o
Slide 3: Highlights – Continuing Operations
Highlights – Continuing Operations • Income R11.7 billion Up 1% • Ebitdar R4.0 billion Down 1% • Ebitda R4.0 billion Up 3% • Adjusted Earnings R1.4 billion Down 14% • Adjusted Heps 134.5 cents Down 14% • Final Dividend per share Nil • Debt:Ebitda 2.95x • Funding covenants waived for the September 20
Slide 4: Statutory Income Statement
TSOGO SUN GAMING STATUTORY INCOME STATEMENT 4
Slide 5: Statutory Group Income Statement (Rm) F'20 F'19
Statutory Group Income Statement (Rm) F’20 F’19 % Change Continuing operations Income 11,686 11,619 1 Ebitdar 3,993 4,031 (1) LTI credit 37 (3) * Property rentals (25) (132) * Ebitda 4,005 3,896 3 Amortisation & depreciation (881) (738) (19) Exceptional items (2,097) (29) * Net finance costs (1,242)
Slide 6: Statutory Group Income Statement (Rm) F'20 F'19
Statutory Group Income Statement (Rm) F’20 F’19 % Change Profit for the period 277 1,622 (83) Non-controlling interests continuing (45) (41) (9) operations Non-controlling interests discontinued (26) (19) (34) operations Attributable earnings 207 1,562 (87) Adjustments continuing operations 1,751 22
Slide 7: Continuing Operations Financial Overview
CONTINUING OPERATIONS FINANCIAL OVERVIEW 7
Slide 8: IFRS 16 Impact (Rm) F'20
IFRS 16 Impact (Rm) F’20 Net Operating costs 14 Ebitdar 14 Rentals 107 Ebitda 122 Amortisation & depreciation (44) Net finance costs (60) Profit for the period 18 • IFRS 16 impacted the group from 1 April 2020 8
Slide 9: Overview – F'19 adjusted for IFRS 16
Overview – F’19 adjusted for IFRS 16 H1 F'20 H2 F'20 FY F'20 FY F'19 Actual Actual Actual Actual Group Revenue (R'bn) 6.0 5.7 11.7 11.6 YOY (%) 5% (3%) 1% Group Overheads (R'bn) (4.0) (3.7) (7.7) (7.6) YOY (%) (5%) 2% (2%) Group Ebitdar (R'bn) 2.0 2.0 4.0 4.0 YOY (%) 4% (6%) (1%) Group Finance costs
Slide 10: Covid-19 and other Income Statement Impacts
Covid-19 and other Income Statement Impacts • Covid-19 estimated impact on F’20 • Revenue loss R400m • Ebitda reduction R250m • Adjusted earnings impact R150m • Additional significant impacts in F’20 income statement (pre-tax) • Ebitdar • Long service award release R62m • Exceptional items • Impairm
Slide 11: Revenue Segmentation (Rm)
Revenue Segmentation (Rm) F'20 F'19 % change Actual Actual on PY % Cont Casino 7,336 7,495 (2%) 63% Slots (75%) 5,513 5,582 (1%) 47% Tables (25%) 1,823 1,913 (5%) 16% Bingo 856 778 10% 7% LPM 1,654 1,549 7% 14% Gaming Income 9,846 9,821 - 84% Rooms Revenue 490 490 - 4% Food & Beverage Revenue 647 64
Slide 12: Segmentation (Rm) F'20 F'19
Segmentation (Rm) Income Ebitdar % % F’20 F’19 Change F’20 F’19 Change Casinos Gauteng 4,732 4,882 (3%) 1,786 1,935 (8%) KwaZulu-Natal 2,327 2,313 1% 962 948 1% Mpumalanga 777 759 2% 274 264 4% Western Cape 619 604 2% 242 229 6% Eastern Cape 294 304 (3%) 73 83 (12%) Free State 129 137 (6%) 31 35 (11
Slide 13: Net Interest Bearing Debt (Rbn)
Net interest Bearing Debt (Rbn) F'20 F'19 Actual Actual NIBD March 2020 (11.2) (11.0) Guarantees (0.2) (0.2) (11.4) (11.2) Ebitda 4.0 3.9 IFRS 16 benefit (0.1) - 3.9 3.9 Debt : EBITDA ratio 2.96x 2.87x Note: Debt/ cash flow significant movements • Dividends (0.9) • Capex (1.2) • Interest (1.0) 13
Slide 14: Tsogo Sun Gaming Prospects
TSOGO SUN GAMING PROSPECTS 14
Slide 15: Funding
Funding • Facilities • Facilities refinanced for 2 – 7 years – R13bn • Notes R5.8bn • Term, RCF & ONL R7.2bn • Negative impact of hedges expected of R0.3bn during F2021 • Covenants • Funding Covenants met at March 2020 • With restricted or no revenue future covenant breaches expected • Funders appro
Slide 16: Opportunities
Opportunities • Potential sale of non-core assets • In process of entering online betting sector • Online casino gaming • Closing loss making and turn around declining businesses • Further restructuring of cost base and efficiency • Western Cape licence remains a challenge 16
Slide 17: Risks
Risks • Coronavirus lockdown and restrictive trading uncertainty • Customers financial position post covid-19 crisis • National Central Monitoring System • Additional gaming licenses • Gambling taxes / Levies – Western Cape • Online Gambling if not restricted to existing casino licensees • Smoking r