TSOGO SUN HOTELS LIMITED - Trading Statement for the year ended 31 March 2021

Trading Statement for the year ended 31 March 2021

TSOGO SUN HOTELS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/006356/06)
JSE share code: TGO
ISIN: ZAE000272522
(“Tsogo Sun Hotels” or “Group”)


TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2021


Shareholder are advised that Tsogo Sun Hotels is scheduled to release its financial results for the year ended 31 March 2021 on
or about 27 May 2021. In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, listed companies are required to
publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for
the period to be reported on, will differ by at least 20% from those of the prior comparative period, being 31 March 2021.



Shareholders are accordingly advised that:

-          Revenue is expected to be between 72% and 76% lower (R3,222 million and R3,401 million lower), compared to the
           prior comparative period of R4,475 million.

-          EBITDAR is expected to be between R1,516 million and R1,541 million lower compared to the prior comparative period
           of R1,352 million.

-          Earnings per share (“EPS”) is expected to be a loss of between 8% and 20% lower (between 67.6 cents and 77.7 cents)
           compared to the EPS loss of the prior comparative period of 84.5 cents.

-          Headline earnings per share (“HEPS”) is expected to be a loss of between 57.4 cents and 66.7 cents compared to the
           prior comparative period HEPS of 20.4 cents; and

-          Adjusted HEPS is expected to be a loss of between 47.4 cents and 55.1 cents compared to the prior comparative period
           Adjusted HEPS of 26.2 cents.


EPS results are impacted by exceptional losses of R263 million (2020: R1,174 million) net of tax and non-controlling interests,
the majority of which relates to fair value losses on the revaluation of the externally-managed investment properties in Hospitality
Property Fund Limited, property, plant and equipment impairments of a number of hotels in South Africa and Offshore as well as
impairments of Offshore investments. The majority of the quantum of these impairments are due to management’s assessment
of the negative impact of COVID-19 on forecast cash flows generated by the underlying hotels for the financial years ended March
2022 and March 2023, as well as the volatility in the bond market and increased in-county risk assessments that have had a
material impact on discount rates across the portfolio. Excluding the impact of these exceptional items, HEPS and Adjusted HEPS
are expected to be losses of between 57.4 cents and 66.7 cents and between 47.4 cents and 55.1 cents respectively, reflecting
the difficult year with substantially reduced trading volumes.

Liquidity and access to facilities are of paramount importance and the Group has met the revised covenant requirements at the
December 2020 and March 2021 measurement dates. The Group extended a R600 million general banking facility, of which
R100 million was utilised at 31 March 2021, which was due to expire in June 2021, to June 2022. There are no other facilities
expiring within the next 12 months. The lenders to both Tsogo Sun Hotels and the now wholly owned Hospitality Property Fund
Limited have been supportive of the Group during this challenging period and have approved the covenant waivers for September
2021. As a consequence of these interventions and having reviewed the cash flow forecast, directors are of the view that the
Group has sufficient resources to continue operations as a going concern in a responsible and sustainable manner.

The Group continues with the implementation of its Covid-19 action plan to contain costs and preserve cash.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company’s
external auditors.

Fourways
20 May 2021

Sponsor to Tsogo Sun Hotels
Investec Bank Limited

Date: 20-05-2021 08:17:00
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