Sun International Limited · JSE:SUI
Sun International — Investor Day (June 2022)
62 slides from Sun International's investor day presentation, Jun 28, 2022
Slide 1: Our Strategic Outlook
Gare International - © © © © © we ° © e© © © © © © © © fg © © 8 oe ee ge pe eo © ° © © © © ee & © © eee ® ee = OUR STRATEGIC _S2© OUTLOOK
Slide 2: Today's Presenters
TODAY'S PRESENTERS CEO COO: Hospitality COO: Sun Slots BCom, BAcc, CA(SA) BCom, BCompt (Hons), CA(SA) ND: Operations Management * Gaming and hospitality * Gaming, hospitality and tourism * Financial and corporate finance * Strategic leadership * Governance and IT . * Manufacturing, fuel retail, gami
Slide 3: Today's Presenters
TODAY'S PRESENTERS COO: SunBet CFO BCompt (Hons), CTA, CA(SA), BSc (Hons), CA (UK) MCom, HDip (Company Law) * Corporate finance advisory and private equity * External and internal audit * Financial management * Online gaming * Commercial and operational management * Strategy and finance Sun Internat
Slide 4: Sun International Capital Markets Day
Uw SUN INTERNATIONAL CAPITAL MARKETS DAY Se Lunch Tour of GrandWest 12h00-12h30 12h30 onwards Sun International | 4 Strategy presentation with Q&A 09h00-12h00
Slide 5: Presentation Agenda
Se PRESENTATION AGENDA OUR GROUP URBAN RESORTS & SUN SUNBET BALANCE SHEET IN CASINOS HOTELS SLOTS & CAPITAL SUMMARY ALLOCATION Providing a Anchoring our Well positioned Growing and Gearing for Strong and Poised for unique business for recovery resilient high growth flexible growth omnichannel and gr
Slide 6: Chief Executive Officer
rN CHIEF EXECUTIVE OFFICER
Slide 7: Our Group | Leveraging Our Unique Differentiator
un OUR GROUP | LEVERAGING OUR UNIQUE DIFFERENTIATOR — Our four businesses are purposefully connected by our omnichannel strategy, and driven by our people, to seamlessly serve our customers OUR PEOPLE OUR PROPERTIES OUR oes a CUSTOMER DATA CUSTOMERS BEB Ww sont » REWARDS PROGRAM DIGITAL SYSTEMS ve S
Slide 8: Our Group | Focused & Growing
OUR GROUP | FOCUSED & GROWING The Group is stronger than ever, well-positioned and well-equipped to maximise shareholder value URBAN CASINOS Strategically located operations across the country Strong cash generator for the Group Defending and growing market share Operations and margins improved Attr
Slide 9: Our Group | Focused & Growing
Uw OUR GROUP | FOCUSED & GROWING Se Our business is underpinned by our Urban Casinos, excellent recovery prospects in Resorts & Hotels and strong growth potential in Sun Slots and “ vcs 60% 85% 20% -3% Contribution Contribution Contribution Contribution to revenue to EBITDA to revenue to EBITDA R7 8
Slide 10: Our Group | Environmental, Social and Governance
Uw OUR GROUP | ENVIRONMENTAL, SOCIAL AND GOVERNANCE Se We ranked 1tin our sector and 20" in the entire JSE for ESG reporting HEALTH, SAFETY AND WELLNESS * Original founder and promoter of responsible gaming program * Initiated several support programs for employee's mental health and wellness + No m
Slide 11: Chief Executive Officer
MIN: CHIEF EXECUTIVE OFFICER
Slide 12: Urban Casinos | Snapshot
SS URBAN CASINOS | SNAPSHOT Our assets are strategically placed and spread across the country 1. Time Square 6. Boardwalk 2. Carnival City 7. Windmill 3. GrandWest 8. Flamingo 4. Golden Valley 9. Meropa 5. Sibaya @ ran casinos 10. Wild Coast Sun @ 11. Sun City Resort @ @ Resorts Casinos Sun Internat
Slide 13: Urban Casinos | Market Context
URBAN CASINOS | MARKET CONTEXT The gaming market has changed substantially over the past decade, with online gaming growing strongly REVENUE PER MARKET SEGMENT (R’ MILLION) REVENUE CAGR (2010 — 2019) 20 000 18 000 © CASINOS 5% Neco 16 000 * Steady growth rate observed * Growing at a rapid rate + Mat
Slide 14: Urban Casinos | Operational Context
URBAN CASINOS | OPERATIONAL CONTEXT Se Urban casino revenues have been resilient, and are swiftly rebounding from the effects of the pandemic 3000 2500 2000 1500 1000 500 CASINO GAMING REVENUE (R’ MILLION) (ACTUALS JAN — MAY) 2019 Key: === 2019 Benchmark 2020 2021 2022 Sun International | 14
Slide 15: Urban Casinos | Our Strategy
URBAN CASINOS | OUR STRATEGY Our strategy is anchored on three core focus areas CUSTOMER CUSTOMER EXPERIENCE ACQUISITION AND | RETENTION MARGIN IMPROVEMENT Sun International |15
Slide 16: Urban Casinos | Acquisition and Retention
pee URBAN CASINOS | ACQUISITION AND RETENTION Our improved use of data and analytics combined with a selective focus on certain market segments will allow us to remain competitive oe °@ DATA MINING PLAYTECH CASINO SUN INTERNATIONAL APP MANAGEMENT SYSTEM * Continued mining of data * Enhances manageme
Slide 17: Urban Casinos | Customer Experience
see & URBAN CASINOS | CUSTOMER EXPERIENCE Because of our ability to render a complete holistic offering, we can increase customer loyalty and retention We reward our customers with special offers at other OUR businesses in the Sun International stable, utilising the MVG CUSTOMERS loyalty program. Th
Slide 18: Urban Casinos | Margin Improvement
ee & URBAN CASINOS | MARGIN IMPROVEMENT We continue to right-size our operations and drive margin improvements to generate strong cash flow DRIVE COST EFFICIENCIES Simplify operational processes OPTIMISE OPERATIONS Right-size operations based on demand * Replace slot machines and other casino * Cons
Slide 19: Urban Casinos | Ambition
SS URBAN CASINOS | AMBITION A continued focus on market share growth and margin improvement will ensure we maintain our standard of strong cash generation uN & oll MARKET SHARE GROWTH MARGIN IMPROVEMENT CASH GENERATION * Achieved growth in market share of 1% * Improved EBITDA margins by over 3% to *
Slide 20: Urban Casinos | Key Opportunities
URBAN CASINOS | KEY OPPORTUNITIES A key priority of the Group is to ensure properties are optimised and well maintained to meet the high standards promised to our customers GRANDWEST SIBAYA TIME SQUARE CARNIVAL CITY BOARDWALK * Expand GrandWest * Refurbish Royal Sibaya * Leverage non-gaming * Refurb
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Slide 22: Resorts & Hotels | Snapshot
SS RESORTS & HOTELS | SNAPSHOT Our iconic properties continue to uphold the high standards synonymous with our brand 1. The Maslow Hotel 3. Wild Coast Sun 2. The Table Bay Hotel 4. Sun City Resort Nigeria (Lagos) * Federal Palace Sun International | 22
Slide 23: Resorts & Hotels | Market Context
Uw RESORTS & HOTELS | MARKET CONTEXT Se Having navigated the challenges brought about by Covid-19, we observe varying degrees of recovery in the market segments we operate in SLOW TO RECOVER GOOD PACE OF RECOVERY \ \ \ \ Corporate travel \ Expected to be at 60%-70% | Conferencing of 2019 levels in 2
Slide 24: Resorts & Hotels | Operational Context
Uw RESORTS & HOTELS | OPERATIONAL CONTEXT Se Domestic leisure, Conferencing and Sports & Events revenues exceed 2019 levels; transient Corporate and International Leisure revenues lag 2019 ROOMS REVENUE BY SEGMENT (R’ MILLION) 300 (ACTUALS JAN — MAY) 250 200 150 100 50 Domestic Leisure Conferencing
Slide 25: Resorts & Hotels | Operational Context
Uw RESORTS & HOTELS | OPERATIONAL CONTEXT Se Our resort gaming revenues exceed 2019 levels, leveraging Sun City Resort & Wild Coast Sun for the enjoyment of our MVG and SunBet customers CASINO REVENUE: SUN CITY AND WILD COAST (R’ MILLION) 450 (ACTUALS JAN — MAY) 400 350 7" 300 250 200 150 100 50 201
Slide 26: Resorts & Hotels | Sun City Resort
RESORTS & HOTELS | SUN CITY RESORT Historic investments into our flagship Sun City Resort were strategically made, and we are tracking well to realise good returns Margin improvement Sun Vacation Club * Focus on cost efficiencies + Phase 3 development of 258 units over next 3 years, investment of R8
Slide 27: Resorts & Hotels | Wild Coast Sun
RESORTS & HOTELS | WILD COAST SUN Secured a new 20 year license and are excited about the growth prospects of Wild Coast Sun Margin improvement Sun Vacation Club * Focus on cost efficiencies * Pursue Sun Vacation Club and other development opportunities Employee engagement Small enterprises and loca
Slide 28: Resorts & Hotels | The Table Bay Hotel
RESORTS & HOTELS | THE TABLE BAY HOTEL The Table Bay Hotel shows great resilience as the international travel market recovers Margin improvement Lease extension * Focus on cost efficiencies * Secure long-term extension from February 2025 Employee engagement Refurbishments * Focused leadership team *
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Slide 30: Sun Slots | Snapshot
Se SUN SLOTS | SNAPSHOT We operate in four strategically selected provinces in order to maximise our return on investment 203 sites 159 sites 1234 LPMs 691 LPMs GRAND GRAND ee Le. rastes 249 sites 323 sites 1141 LPMs 1641 LPMs GRAND sigs KINGDOM SLOTS Plbieds spt ANS pled pute IN Sun International |
Slide 31: Sun Slots | Market Context
Se SUN SLOTS | MARKET CONTEXT We have a strong distribution network of LPMs in the provinces we operate LPM MARKET IN SOUTH AFRICA TOTAL ACTIVE LPMs (15 058) PER PROVINCE IN SOUTH AFRICA Total licensed LPMs in South Africa: 25 000 3500 3000 2500 2000 53% 1500 4A% Total active LPMs: 15 058 1000 a 50%
Slide 32: Sun Slots | Business Model
Se SUN SLOTS | BUSINESS MODEL The growth of our business relies on a partnership strategy with carefully selected sites | NO. OF SITES NO. OF LPMs GGR/LPM EBITDA Ensure partnership with Work with the regulator to Ensure the right achine Continue to achieve Optimise our business to quality sites allo
Slide 33: Sun Slots | Ambition
Se SUN SLOTS | AMBITION We will continue to grow our business... ...to remain the preferred route operator in South Africa and beyond ® NA eS foil GGR GROWTH MARGIN IMPROVEMENT RETURN ON CAPEX Annual GGR of >R2bn by FY2026 EBITDA margins of >25%. Return on capex over the next 5 years >35% Sun Intern
Slide 34: Sun Slots | Strategy
SUN SLOTS | STRATEGY We will achieve our ambition by focusing on four core areas COMPLETE LPM DELIVER SUPERIOR DRIVE ROLL-OUT AND oo SERVICETO SITE | [eM OPERATIONAL OBTAIN NEW : OWNERS i EFFICIENCY LICENSES ? PURSUE OTHER GROWTH OPPORTUNITIES Sun International | 34
Slide 35: Sun Slots | LPM Roll-out and New Licenses
@ 2 3 4 CE SUN SLOTS | LPM ROLL-OUT AND NEW LICENSES We will continue to engage with the regulator to accelerate growth in the number of LPMs in operation LPMs allocated to Sun Slots: 6 500 * Accelerate roll-out of LPMs already allocated to reach 6 500 active LPMs * Lobby for additional LPM allocati
Slide 36: Sun Slots | Superior Service
1 @ 3 4 CE SUN SLOTS | SUPERIOR SERVICE We deliver superior service to site owners, adding value to their businesses to entrench and grow our operations Value adds + Support services Quality service reputation © Falneintcrell aasisieemes y P + SunBet offering Deliver ee service to our customers (sit
Slide 37: Sun Slots | Superior Service
1 @ 3 4 CE SUN SLOTS | SUPERIOR SERVICE The quality of our sites is evident as we have outperformed the market in 3 out of the 4 provinces we operate in AVERAGE GROSS GAMING REVENUE/ LPM/ DAY |__ BENCHMARKING PERFORMANCE |) 1400 = * Outperforming the industry in terms of National average vs Sun Slot
Slide 38: Sun Slots | Operational Efficiency
P2e® & SUN SLOTS | OPERATIONAL EFFICIENCY We are implementing effective solutions to drive our cost and operational efficiencies DATA & TECHNOLOGY PEOPLE PROCESS REGULATION Sun International | 38
Slide 39: Sun Slots | Other Growth Opportunities
To p< SUN SLOTS | OTHER GROWTH OPPORTUNITIES We continue to explore opportunities to expand our operations Independent Site Operators (ISOs) + Allows 100% revenue participation, as opposed to revenue split with site owners + Adopted an opportunistic approach, requires regulatory approval Africa expa
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Slide 41: SunBet | An Introduction
SS SUNBET | AN INTRODUCTION SunBet is Sun International's rapidly expanding online sports betting and gaming platform Sun International | 41
Slide 42: SunBet | Market Context
Se SUNBET | MARKET CONTEXT Online gambling has been in operation for over two decades and its global leaders are now established businesses with formidable valuations GLOBAL ONLINE GAMBLING GGR (£’ BILLION) (2001 — 2024e) eee |) 70 60 £16.5bn 52 42 ° a Selon €8.6bn 30 20 a : Wart $5.6bn al 5 | | iSu
Slide 43: SunBet | Market Context
Se SUNBET | MARKET CONTEXT South Africa lags behind mature markets presenting an opportunity for SunBet to grow SOUTH AFRICA BOOKMAKER INCOME (R’ MILLION) ose ~~ Y oo of > ee 9643 South Africa Bookmaker income Estimated market size (2021) 7071 5244 4050 3459 2428 1968 peo 1345 F F 590, 290, _o_ =o 5
Slide 44: SunBet | Business Model
SS SUNBET | BUSINESS MODEL Data-driven marketing expands our customer base, aligned with first class service and operational efficiency to deliver strong results NUMBER OF BETS PLACED ACTIVE GAMING MARKET CUSTOMER MARGIN EBITDA NUMBERS % SHARE AVERAGE BET SIZE MARKETING HEADLINE METRICS OPERATIONAL
Slide 45: SunBet | Responsible Gambling
SUNBET | RESPONSIBLE GAMBLING SunBet positioned to be the most trusted and responsible gaming operator (— REGULATION * Gambling in South Africa authorised at national level with regulation and implementation at provincial levels * Provincial licenses allow acceptance of customers from all provinces
Slide 46: SunBet | Ambition
SS SUNBET | AMBITION Aim to increase our customer base to achieve 6x revenue in FY2026 and become a Pan-African online gaming platform 2021 estimated online betting market size: R5.7bn R197m FY2026 GGR AMBITION With leveraged effect on EBITDA FY2021 GGR Sun International | 46
Slide 47: SunBet | Strategy
SUNBET | STRATEGY Se We will leverage the Sun International brand, presence, and loyalty offering to attract and retain players TARGETED, EFFICIENT, DATA- DRIVEN MARKETING DELIVER VALUE- ADDED BENEFITS THROUGH OMNICHANNEL OFFERING AND SUN STABLE DEVELOP REPUTATION FOR EXCELLENCE PURSUE MARKET GROWTH
Slide 48: SunBet | Data-Driven Marketing
2900 & SUNBET | DATA-DRIVEN MARKETING Our marketing focus is on using smart data to attract the right customer, whilst adding value through our superior service DATA-DRIVEN MARKETING Q a ie) eg y \ ¥ “O. s % & Accurate and ion pe COS TION STRATEGIES reliable daily RETENTION STRATEGIES Attract the ri
Slide 49: SunBet | Value-Added Benefits
1 @ 3 4 CE SUNBET | VALUE-ADDED BENEFITS Ina highly commoditised online industry, our competitive advantage lies in our ability to add value to our offering through the wider Sun International stable IR PEt ou OPLE Sun brand synonymous with gaming in South Africa * Trust is paramount in both e-comme
Slide 50: SunBet | Reputation for Excellence
1 2 @ 4 CE SUNBET | REPUTATION FOR EXCELLENCE Build a reputation for excellence to ensure we retain long-term value in our customers Friction-free delivery and systems * Seamless deposits & withdrawals * Tailor made bonusing and promotions * Optimised gameplay experience REPUTATION FOR QUALITY AND E
Slide 51: SunBet | Market Growth Opportunities
12e2@ & SUNBET | MARKET GROWTH OPPORTUNITIES We are on a focused journey to grow our current operating market and launch into new markets ENTER NEW GEOGRAPHIES * Currently acquiring the EaziBet Group with licenses in Zambia, Kenya and Ghana to launch Africa expansion * Operational plans being develo
Slide 52: Chief Financial Officer
BASTHDAW CHIEF FINANCIAL OFFICER
Slide 53: Balance Sheet & Capital Allocation | Our Framework
BALANCE SHEET & CAPITAL ALLOCATION | OUR Se FRAMEWORK We have established a set of fundamental principles that guide our choices and enable effective utilisation of capital @» ® & MAXIMISE OPTIMISE DEBT INVEST TO GROW INVEST TO PROTECT PURSUE AN SHAREHOLDER LEVELS ASSETS ASSETS EFFICIENT OVERALL RET
Slide 54: Balance Sheet & Capital Allocation | Group Debt
Uw BALANCE SHEET & CAPITAL ALLOCATION | GROUP DEBT Se We are proud of our ongoing successes in substantially decreasing our debt levels GROUP AND SOUTH AFRICAN DEBT (EXCLUDING IFRS 16 LEASE LIABILITIES)* (R’ MILLION) 7830. SES Decrease in Group debt South African debt to between Dec 2019 and EBITDA
Slide 55: Balance Sheet & Capital Allocation | Expenditure
BALANCE SHEET & CAPITAL ALLOCATION | EXPENDITURE Se Investment into several of our strategic priorities is critical in sustaining and growing our business and ultimately maximising shareholder returns ONGOING CAPEX AS A % OF REVENUE 8% 9 7% = = = 2019 2020 2021 2022 F CAPEX AS A % OF REVENUE (FY2022
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Slide 57: In Summary | Trading Update
Se IN SUMMARY | TRADING UPDATE The first five months to 31 May 2022 reflect strong revenue growth of 34% and EBITDA up over 80%, compared to the corresponding 2021 period REVENUE ACROSS THE SOUTH AFRICAN BUSINESS (R’ MILLION) (JAN — MAY) 3000 31% * FY2021: R3 188m 2500 * FY2022: R4 286m 1500 62% * S
Slide 58: In Summary | Our Group
Se IN SUMMARY | OUR GROUP We are a focused and growing business; we have strategically positioned ourselves to deliver growth and maximise shareholder returns URBAN CASINOS * Grow market share and improve margins RESORTS & HOTELS * On the road to recovery * Deliver EBITDA growth * Demonstrating bett
Slide 59: In Summary | Looking Ahead
SS IN SUMMARY | LOOKING AHEAD Our priority remains to deliver value to our stakeholder groups through our people, and to grow the Group PEOPLE AND OPERATIONAL CUSTOMER MAXIMISE ENVIRONMENTAL, CULTURE EXCELLENCE AND CENTRICITY SHAREHOLDER VALUE SOCIAL & EFFICIENCIES GOVERNANCE Sun International | 59
Slide 60: Thank You
Gare International - THANK YOU - OOO e ee > é am www.suninternational.com 2022 © Sun International
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Slide 62: Supplementary Information | Glossary of Terms
SUPPLEMENTARY INFORMATION | GLOSSARY OF TERMS ITEM | DESCRIPTION EBITDA Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation; it is ais a measure of a company’s overall financial performance. EBT | Electronic Bingo Terminal; these are very similar to the traditional bingo game an