SUN INTERNATIONAL LIMITED - Trading statement

Trading statement

Sun International Limited
(Incorporated in the Republic of South Africa)
(Registration number 1967/007528/06)
Share code: SUI
ISIN: ZAE000097580
(“the company” or “the group”)

TRADING STATEMENT

The company is currently finalising its results for the year ended 30 June 2016, which are
expected to be released on the Stock Exchange News Service of the JSE Limited
(“SENS”) on 22 August 2016.

In this regard, shareholders are advised that in comparison to the results of the year ended
30 June 2015 (“last year”), provided to the market in a SENS announcement dated 24
August 2015:

   -   EBITDAR (previously reported as EBITDA) is expected to be between 4% and 8%
       above the R3 171 million reported last year and EBITDA (after rentals) is expected
       to be between 2% and 4% above last year;

   -   Operating profit (EBIT) is expected to be relatively flat year on year, between -2%
       and 0% lower than last year

   -   Diluted adjusted headline earnings per share (“AHEPS”), which the company
       considers the most meaningful measure of its performance, are likely to be between
       608 and 647 cents per share (18% to 23%) lower than last year’s 789 cents.

       The prior year’s AHEPS has been restated to include an adjustment for an
       unrealised forex loss of R89 million (R44 million attributed to the Company) on US
       Dollar denominated shareholder loans owed by the Federal Palace property in
       Nigeria and rentals have been included at the actual amount paid as opposed to the
       straight line accounting charge.

   -   Loss per share (“LPS”) is likely to be between 400 to 447 cents per share (- 142%
       to -147%), compared to the 950 cents earnings of last year; and

   -   Headline loss per share (“HLPS”) is likely to be between 370 to 420 cents per share
       (-159% to -167%), compared to the 629 cents earnings of last year.


The LPS and HLPS have been impacted by the following:
   - An expense of R748 million (R579 million attributed to the company) for settlement
     of the Time Square note as a result of the Peermont group transaction not
     proceeding and the settlement of the GoldRush legal challenge to Time Square.
   - An earn out payment of R243 million relating to the minority interest in Monticello
     that was acquired by the company last year as a result of Monticello achieving the
     earnings targets set out in the transactional agreements.
   - An unrealised forex loss of R207 million (R102 million after tax attributed to the
     Company) on US Dollar denominated shareholder loans owed by the Federal
     Palace property in Nigeria.
   - Interest charges which were significantly higher due to the higher interest rates in
     South Africa, converting US Dollar debt in September/October 2015 to Rand based
     debt with higher effective interest rates and higher overall debt levels in the group
     due to funding of the corporate activity and acquisitions using debt.
   - A higher effective tax rate due to certain tax adjustments and no tax relief raised
     with respect to the Ocean Sun casino and Federal Palace losses in the current
     year.

In deriving AHEPS, the Time Square settlement accruals, the Monticello earn out payment
and the Nigeria forex loss have been adjusted for.

Included in the results is trading from the effective date of acquisition for the two acquired
entities during the year, namely Dreams (one month trading) and GPI Slots (three months
trading).

The difference between earnings per share and headline earnings per share for last year
was largely attributable to the R466 million profit realised from the sale of a significant
portion of the group’s shareholdings in the group’s operations located in Botswana,
Lesotho, Namibia and Zambia.

The financial information on which this trading statement is based has not been reviewed
and reported on by the company´s external auditors.

Sandton
17 August 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 17/08/2016 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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