Southern Sun Limited · JSE:SSU
Southern Sun — RMB Morgan Stanley Off Piste Investor Conference 2024
17 slides from Southern Sun's conference presentation, September 2024
Slide 1: RMB Morgan Stanley Off Piste Investor Conference
RMB Morgan Stanley Off Piste Investor Conference September 2024
Slide 2: Covid 19 - What did we learn?
Covid 19 - What did we learn? • Complete restructure of the cost base and how we operate, particularly central costs. • Cleaned up the dual listing of Southern Sun and HPF removing the REIT structure • Sold valuable assets (Maia and Lagos) that produced limited free cash flow to cover losses and sub
Slide 3: What have we got?
What have we got ? • Irreplaceable portfolio of hotels with great locations and broad reach across the country • Cape Town / Sandton / Durban / Umhlanga • Own the majority of our hotels • Strong local brands in all tiers of the local market • Beverly Hills, Southern Sun, Garden Court, SunSquare, Sta
Slide 4: What have we got?
What have we got ? • Strong balance sheet and cash flows, with high operational gearing • Modest revenue growth should result in strong earnings growth • Record profits at 58,6% occupancy in F’24, we expect occupancy to increase rather than decline if SA improves • 1% Occupancy increase is R70m room
Slide 5: Southern Sun at a Glance
SOUTHERN SUN AT A GLANCE Total Hotels Total Rooms Western Cape 17 3 352 KwaZulu-Natal 14 2 869 Gauteng 30 5 167 Eastern Cape 5 772 Mpumalanga 8 675 Other 6 715 South Africa 80 13 550 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: The strategy is inward focused
The strategy is inward focused • Operational • Hold onto the restructure savings and don’t let the bad habits creep back in • Apply our principles of being consistent, present and showing respect • Get better at what we do with a focus on the guest • Develop all channel relationships - direct, OTA,
Slide 7: 5 Year Cash Flow
Pre-Covid Covid Recovery 5 Year Cash Flow F’20 F’21 F’22 F’23 F’24 5-year Actual Actual Actual Actual Actual analysis Cash generated from operations 1 254 (139) 508 1 203 1 696 4 522 Finance costs paid (excl IFRS 16 adjustments) (259) (218) (229) (210) (155) (1 071) Taxation paid (115) (42) (9) (100
Slide 8: Current Refurbishments in progress or completed in F'25
Current Refurbishments in progress or completed in F’25 Southern Sun The Radisson Gautrain Southern Sun Sandton Cullinan Sandton Southern Sun Radisson Waterfront Sandton Towers Rosebank 8
Slide 9: Swimming pool repairs; lobby and rooms refurbishment
• Swimming pool repairs; deck extension & water piping required a months’ closure in June 2024 • Lobby, conference area and around 60% of rooms completed 9
Slide 10: Restaurant and bedroom refurbishment
• Restaurant refurbishment and signage – Done • Refurbishment of the bedrooms scheduled for completion in F’25 10
Slide 11: Lobby completed; bedrooms and new restaurant works
• Lobby and public areas completed in February 2020 • Works include the bedrooms, corridors and the lift lobby in the South Tower • New restaurant scheduled for completion in October 2024 11
Slide 12: Hotel closed for refurbishment, reopening November 2024
• Works includes the bedrooms, corridors, lobby, the club lounges and key plant and machinery • Included are the suites and the presidential • The hotel closed on 26 April 2024 and will reopen on 27 November 2024 12
Slide 13: Conversion from Radisson Blu to Radisson Collection
• Conversion from Radisson Blu to Radisson Collection • Bedroom mock-ups have been completed in F’24 and refurbishment of 100 rooms currently in progress • We own 51% of the sectional title participation quota 13
Slide 14: Future projects in the mock up phase
Future projects in the mock up phase Southern Sun Southern Sun Mount Grace Hyde Park Mbombela Southern Sun Southern Sun Pretoria Bloemfontein Paradise Sun 14
Slide 15: Future developments
Future developments Beverly Hills • Total redevelopment • Expansion to 177 rooms Umhlanga land • We have two development sites land banked in Umhlanga Ridge Cullinan Land • Large hotel and office development Potential co-investment / management with 3rd parties These would all take a number of years
Slide 16: Manage the Risks
Manage the Risks • Leases: • SS Elangeni & Maharani, SS OR Tambo, GC Nelson Mandela Boulevard, City Bowl, GC Marine Parade • Represents 10% of F’24 Ebitda with expiries between 0 and 9 years • Don’t make mistakes and debt is dangerous • Acquisitions and new builds have a high hurdle rate as long as
Slide 17: Thank you
Thank you Y Southern Sun
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