CIEL HOTELS & RESORTS BUSINESS MODEL WHO WE ARE

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1 CIEL HOTELS & RESORTS BUSINESS MODEL INPUT VALUE WE DRAW FROM FINANCIAL CAPITAL Solid shareholders but highly geared company SOCIAL & RELATIONSHIP CAPITAL Strategic partnerships with Four Seasons, Shangri-La and Dentressangle Initiatives Our Value Proposition Strategically located hotels on the nicest beaches of Mauritius Most recently renovated hotel properties in Mauritius Strategic partners (Four Seasons and Shangri-La) elevating the hotel industry standards in Mauritius and offering career development opportunities to Mauritians In-house Tour Operators (Solea and World Leisure Holiday) bringing complementarity to hotel business Owner of strategically located land in Mauritius for potential property development HUMAN CAPITAL Approx. 4,500 employees WHO WE ARE CIEL Hotels and Resorts regroups all our hospitality assets and represents mainly our 50.10% shareholding in Sun Limited INTELLECTUAL CAPITAL Sun Resorts brand, iconic hotels heritage (La Pirogue, Le Touessrok, etc.) MANUFACTURED CAPITAL 9 owned and managed strategically located properties/land in the Indian Ocean OUR ACTIVITIES Hotel Management Centralised Services Asset Management Real Estate 2Tour Operators More than 1,500 rooms 3 + hotels 3hotels NATURAL CAPITAL Biodiversity & ecosystem health, water, land, energy 60 2golf courses 2hotels Our Assets

2 MAIN OUTPUT DURING THE YEAR FINANCIAL CAPITAL Revenue: MUR 6bn Profit after tax: MUR (121M) Lower finance costs SOCIAL & RELATIONSHIP CAPITAL Guest satisfaction score with implementation of new reputational management tool New partner with Dentressangle Initiatives HUMAN CAPITAL New leadership team at Corporate Office and reorganisation of Sales structure INTELLECTUAL CAPITAL Re-launch of Kanuhura with unique hotel positioning MANUFACTURED CAPITAL Renovated property assets NATURAL CAPITAL Wastewater Emissions and energy consumption Solid and organic waste MAIN OUTCOMES DURING THE YEAR Reopening of Kanuhura, Maldives Successful implementation of new rate strategy All hotels operational Successful listed Bond Issue, Rights Issue and Private Placement Increased brand recognition with Tour Operators and customers Well structured management team at Sun leading return to profitability Launching of MICE capabilities which should lead to new revenue Launching of golf positioning Successfully re-negotiated UK Exclusive Contract and worked on attracting customers from other markets TARGETS Improve our guest profile for higher spend Drive operational excellence Greater focus on Learning and Development for employees Grow occupancy at Kanuhura in Maldives Repositioning of all our hotels in their competitive sets Strong focus on guest experience Improve shareholder value by successful development of Real Estate Projects 61 ABOUT CIEL STRATEGY & PERFORMANCE PORTFOLIO REVIEW RISK MANAGEMENT SUSTAINABILITY CORPORATE GOVERNANCE FACTS AND FIGURES

3 Progress Report Last Year s Priorities Progress Report New rate positioning New pricing strategy has been implemented and yielding positive results so far; on-going efforts to continue growing average room rates. Debt restructuring Successful bond issue, rights issue and private placement have led to a healthier balance sheet. Reopening of unique and iconic Kanuhura, Maldives Kanuhura reopened in December and has been rated 3 rd Best Hotel renovation in the world but is facing challenges due to geopolitical situation in Maldives. Strategic Golf and MICE positioning Strategic partnership with #Tamarina Golf Club, Ile aux Cerfs Golf Club and Anahita Golf Course. Recruitment of MICE expert and launch of MICE capabilities. 62

4 2017 Financial Performance Income Statement MUR M MUR M MUR M The rise of 20% in revenue of the Hotels and Resorts cluster can be mainly attributed to Shangri-La s Le Touessrok and Four Seasons at Anahita luxury resorts being fully operational the entire financial year and to Kanuhura s re-opening in mid-december Effective since November 2016, Sun s new rate strategy is also contributing to the positive results of the cluster. However the renovation of phase one of La Pirogue and closure in June 2017 as well as the operational loss of Kanuhura since its relaunch weighed on the year s financial performance. Non-recurring closure, restructuring and branding costs have substantially decreased while finance costs have slightly risen due to higher renovation-related indebtedness Var Revenue 6,007 4,989 1,018 EBITDA Non-recurring Items (124) (534) 410 Profit after Tax (121) (378) 257 Profit attributable (77) (188) 111 Sun Group is currently expecting a reduction in the gearing ratio from 55% as at 30 June 2017 to 42% by the end of the 2018 financial year following the MUR 5bn multi-currency note programme and the rights issue and the private placement of MUR 1.86bn. With a full room inventory as from August 2018 and a fully renovated asset base, the 2018 financial year should reflect a gradual improvement in profits. 63 ABOUT CIEL STRATEGY & PERFORMANCE PORTFOLIO REVIEW RISK MANAGEMENT SUSTAINABILITY CORPORATE GOVERNANCE FACTS AND FIGURES

5 Focus Areas for 2018 Continue to grow revenue and increase sustainable profitability Capitalise on our commitment to Operational Excellence Achieve best-in-class in our competitive set across each of the categories in which we operate Diversify our distribution channels with increased share of direct bookings, MICE markets and Golf offers Elevate guests experience through refining our brand promise and hotels positioning Refine and amplify our Brand Promise, Timeless Memories, through multiple activations Reposition Long Beach to 5* Deluxe Continue operational excellence journey to improve margins and enhance customer experience Focus on training of associates Optimisation of Business Intelligence with live operational and financial KPIs Management empowered to deliver financial and operational KPI s Create value through real-estate development and management contracts Diversify cash-flow generation through real-estate development and third-party management contract Outlook Current Market Dynamics Growing tourists arrivals in Mauritius Challenging geopolitical situation in Maldives Brexit s impact of UK clients Exchange rate movement against Mauritian rupee Sun is presently embarking on its growth phase and the management team remains of the view that the Group is now well positioned to fully benefit from its revamped asset base and as a result, to progressively improve its profitability as from FY

6 65 ABOUT CIEL STRATEGY & PERFORMANCE PORTFOLIO REVIEW RISK MANAGEMENT SUSTAINABILITY CORPORATE GOVERNANCE FACTS AND FIGURES