Sun International : Environmental, Social, and Governance Report

2022

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (ESG)

STRATEGIC LEADERSHIP

CONTENTS

About this report

About this report

2

SUSTAINABLE VALUE	ENVIRONMENTAL	SOCIAL	SUPPORTING GOOD	ANNEXURE	CORPORATE DATA AND
CREATION	PERFORMANCE	PERFORMANCE	GOVERNANCE	JSE METRICS	ADMINISTRATION

REPORTING FOOTPRINT AND NAVIGATION

Sun International's environmental, social and governance (ESG) report is interactive. The user experience is aided by a navigation bar and interlinking of pages and information, both within the report and to other reports and external sources. Navigation is further aided by the icons below. All reports are also available online for viewing or downloading where the online report generator function further enhances the user experience.

1

Strategic leadership	3
Leadership message	3
Board of directors	4
Executive management	4

Sustainable value creation	5
Our presence and group structure	5
ESG reporting landscape	6

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FORWARD-LOOKING STATEMENTS

This report may contain certain forward- looking statements, other than the statements of historical fact, which cannot be construed as reported financial results. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein, as they have not been reviewed or reported on by the group's external auditors. Such statements may include predictions of or indicate future

Business model	8
ESG strategy	9
ESG material topics	13
Stakeholder engagement	16

Social media

Sun International's top six SDGs

Facebook

Twitter

YouTube

Instagram

earnings, objectives, savings, events, trends or plans based on current expectations, forecasts and assumptions. As with any forward-looking statement, prediction or forecast, there are inherently unexpected events which could cause uncertainty and unexpected change which have not, and could not, be accounted for.

Environmental performance	19
Social performance	23
People and culture	23
Health, safety and wellness	31
Socio-economic development	36
Enterprise and supplier development	41
Supporting good	45
governance
Corporate governance report	45
King IVTM application register	57
Social and ethics committee report	62
Independent assurance statement	65

Annexure	67
JSE metrics
Corporate data and	79
administration

2022 SUN INTERNATIONAL Environmental, social and governance report (ESG)

Capitals

FC	PC	HC
Financial	Productive	Human
IC	SC	NC
Intellectual	Social and	Natural
	relationship

Strategic objectives

SO1 People and culture

SO2 Operational excellence

SO3 Customer centricity

4 Maximise shareholder SO value

SO5	Environmental, social
and governance (ESG)

Key stakeholders

Communities

Employees

Gambling

boards

Regulators and industry bodies

Customers and guests

Equity partners

and debt funders

Partners and

suppliers

Top 10 risks1

R 1	Weak economic conditions
R 2	Utility supply and efficiencies
R 3	Political and civil unrest
R4	Relocation of casino licence
in the Western Cape
R5	Cyber threats and information
	security
R6	Playtech implementation
R7	Unsuccessful implementation
of online strategy

R8	Smoking legislation
R9	Ongoing changes in casino
licence conditions
R10	Economic and other serious
crimes

1 Top 10 risks as at 10 March 2023.

Whereas the company has made every effort to accurately and reasonably ensure the accuracy and completeness of the information contained within this report, any forward-looking statements speak only as at the date that they are made. The actual results may vary materially from those expressed or implied, and the company undertakes no obligation to publicly update or alter these or to release revisions after the date of publication of this report.

STAKEHOLDER

FEEDBACK

We welcome stakeholders' feedback on our reporting, particularly regarding our suite of reports. Feedback can be sent to investor. [e-mail] or group. [e-mail]

	SUSTAINABLE VALUE	ENVIRONMENTAL	SOCIAL	SUPPORTING GOOD	ANNEXURE	CORPORATE DATA AND		2
STRATEGIC LEADERSHIP	CREATION	PERFORMANCE	PERFORMANCE	GOVERNANCE	JSE METRICS	ADMINISTRATION

ABOUT THIS REPORT

Welcome to Sun International Limited's (Sun International) 2022 ESG report, which focuses primarily on the group's environmental, social and governance information.

REPORTING SCOPE, STRUCTURE AND BOUNDARY

REPORTING SUITES AND REPORTING FRAMEWORKS

Sun International reports in a holistic, transparent and integrated manner to assist our stakeholders to make informed decisions about our business. We aim to provide our stakeholders with a focused and balanced report that demonstrates our integrated thinking and our ability to create and preserve value, but also highlights the areas where we eroded value for the year under review. This report covers the financial period 1 January 2022 to 31 December 2022 and incorporates all Sun International's subsidiaries and operating units in the geographic locations where we operate - South Africa and Nigeria. For our reporting scope purposes, we have only detailed our South African operations' information in this report as Nigeria is not material to the scope. Our South African operations are the group's single biggest income contributor and gaming remains the group's primary income generator.

The tourism and entertainment industry has rebounded as lockdowns at various alert levels were lifted in 2022. Our integrated thinking, regular stakeholder engagement, risk and opportunity identification, capital resource prioritisation and the ability to take decisive action continue to stand the group in good stead. Our strategic progress, driven through our business model, continues to position the group for growth opportunities and value creation over the short, medium and long term.

This report is structured around our leadership message, value creation, ESG performance and our governance transparency and accountability. The other suite of reports includes the group's integrated annual report (IAR), annual financial statements (AFS), statutory information as well as remuneration information.

Leadership message	Page 3
ESG strategy	Page 9
Stakeholder engagement	Page 16
Environmental performance	Page 19
Social performance	Page 23
Supporting good governance	Page 45

Our ESG report content covers the reporting period's most material topics and where applicable, content includes the period up to the report's finalisation on 31 March 2023. Sun International's ESG material topics are matters that could substantively influence the assessment of providers of capital and other stakeholders regarding the group's ability to create, preserve and erode value over the short, medium and long term. The process of determining our ESG material topics is outlined in the ESG material topics section of this report. This process is dynamic and evolves annually to ensure our ESG material topics remain relevant, align with the group's risks and opportunities and enable the group to achieve its strategic objectives, vision and purpose.

Contribution to group income

3

13

Income %

per

23 segment/ category

61

11	1
14	Adjusted
	EBITDA
contribution %
by segment
		74
Urban Casinos		Resorts and Hotels
Sun Slots		SunBet

The group's suite of reports is guided by various frameworks, as depicted below. Our ESG report is guided by the Global Reporting Initiative (GRI) Standards as well as the JSE Sustainability Disclosure Guidance. Certain sustainability information is externally assured by IBIS Consulting (link to assurance statement). Our IAR is primarily guided by the International Financial Reporting Standards (IFRS) Foundation's Integrated Reporting and Connectivity Council's recommendations for integrated reporting (the Framework). Our AFS follow IFRS and are externally assured by Deloitte & Touche.

A detailed register of our King IVTM application of governance principles is available online. The group also embraces the United Nations Sustainable Development Goals (SDGs), which encourage companies and individuals to take the necessary action to achieve the SDGs by 2030.

https://corporate.suninternational.com/investors/investors-results-reports/

2022

2022

ANNUAL STATUTORY

GROUP AUDITED

2022

2022

REPORT

CONSOLIDATED

ENVIRONMENTAL, SOCIAL AND

FINANCIAL STATEMENTS

INTEGRATED ANNUAL REPORT

GOVERNANCE REPORT (ESG)

for the year ended 31 December 2022

Group audited

Environmental, social

Integrated annual

and governance report

Annual statutory

consolidated

report

(ESG)

report

financial statements

International

Framework

IFRS

Companies Act

King IVTM

JSE Listings Requirements (LR)

JSE Sustainability

Disclosure Guidance

SDGs

GRI

AA1000AS

COMBINED ASSURANCE MODEL

Sun International's combined assurance strategy and framework ensures optimal, cost-efficient and integrated assurance coverage group-wide.

Read more https://corporate.suninternational.com/investors/investors-results-reports

Our hybrid top-down and bottom-up approach, which aligns with the King IVTM outcomes, ensures adequate assurance on key business risks and processes. This model also enables an effective internal control environment and supports the integrity of information that management, the board and other stakeholders use in decision-making.

2022 SUN INTERNATIONAL Environmental, social and governance report (ESG)

Page 46

		SUSTAINABLE VALUE	ENVIRONMENTAL	SOCIAL	SUPPORTING GOOD	ANNEXURE	CORPORATE DATA AND		3
	STRATEGIC LEADERSHIP	CREATION	PERFORMANCE	PERFORMANCE	GOVERNANCE	JSE METRICS	ADMINISTRATION

Leadership message	Board of directors
Executive management

LEADERSHIP MESSAGE

SAM SITHOLE

Chairman

As our ESG journey matures, we remain steadfast in our endeavours to being an ethical and proactive corporate citizen. This is demonstrated through our

environmental, social and governance (ESG) activities.

ANTHONY LEEMING

Chief executive

To demonstrate our commitment to Sun International's ESG journey, we signed a R2.4 billion sustainability linked loan, the first in the South African hospitality sector. This loan aims to promote the achievement of key sustainability performance indicators (KPIs), to demonstrate Sun International's commitment towards being a responsible corporate citizen and further cementing our position as an ESG leader in the South African travel and leisure industry. We have set ambitious KPIs that align with our ENVIRO-AMBITION 2025 and enterprise

and supplier development strategies, to address key environmental and social challenges faced within South Africa. These include reducing airspace in landfills, securing electricity supply and local procurement, specifically to empower black women-owned businesses.

We are also focused on reducing our group-wide environmental footprint and investing in green energy solutions to become a more energy-efficient and sustainable organisation. This has become even more important as South Africa's economy continues to struggle with muted growth projections and the business environment remains tough. The group is making good progress on long-term solutions like renewable energy, which will have a positive impact on the environment and will generate acceptable returns. For example, Boardwalk's reverse osmosis water solution was completed in 2022 and, pending the approval of a water use licence, will supply the hotel and casino with potable water.

We are creating shared value for the communities in which we operate, through preferential local procurement, socio-economic development (SED) and corporate social investment (CSI) in-kind programmes, recognising that these communities give us our social licence to operate and are integral to our long- term sustainability. In 2022, we invested R27.6 million and R5.3 million in SED and CSI in-kind donations respectively. As part of our Sharing the Sun campaign, where senior leadership grant wishes to employees who go above and beyond the call of duty, R2 million was allocated to grant certain employees' wishes. Over R4 billion was invested in preferential procurement as part of the group's commitment to creating opportunities for all suppliers, particularly broad-based black economic empowerment (B-BBEE) compliant small, medium and micro enterprises (SMMEs) as well as supporting economic upliftment in our supply chain.

As part of our ESG journey, which predates 2016, we remain abreast of global ESG developments, particularly in the ESG reporting landscape, where there has been a significant increase in the number of sustainability standards and frameworks globally. For our 2022 ESG report, we have embraced the JSE's Sustainability Disclosure Guidance that incorporates other key reporting standards and frameworks such as the Global Reporting Initiative (GRI) Standards and the Taskforce on Climate-related Financial Disclosures (TCFD).

To objectively measure our ESG progress, we take part in various surveys by local and international rating agencies such as the FTSE Russell, CDP Climate Change reporting, IRAS Sustainability Data Transparency Index (SDTI) and S&P Global Corporate Sustainability Assessment. IRAS, for the second consecutive year, rated Sun International the best ESG reporting company in the travel and leisure industry and the 17th best company overall in ESG reporting, out of 270 assessed JSE listed companies.

Through our holistic ESG strategy, we continue to monitor and evaluate our contribution towards minimising our impact on the natural and social environments in which we operate, while ensuring sustainable value creation for all our stakeholders. ESG is also a key group strategic objective, and we include a dedicated session at the board strategy to discuss ESG as a strategic focus area.

Our ENVIRO-AMBITION2025 focuses on carbon emissions, water, electric energy and waste. It maps our journey towards being at the forefront of sustainable environmental management

in the hospitality sector and outlines our KPIs and mechanisms for realising our environmental ambition. This approach has clear KPIs, mechanisms and measurements for realising new environmental initiatives that mitigate the natural resource challenges the group and South Africa face. Our strategy also inherently considers the United Nations Sustainable Development Goals.

Our people are the primary interface with our guests and customers and they are the custodians of memorable guest experiences. They are the heart of our business. Despite a challenging operating environment, the resilience and forbearance of our people have ensured that we remain a thriving business that continues to make memorable experiences for all of our guests. Our new Sun Stars reward, and recognition programme will shine a light on those who go above and beyond the call of duty. Further, Sun International's SunWay culture and employee value proposition (EVP) continues to embed the group's culture as well as attract and retain top- performing employees.

The health, safety and wellbeing of our employees and guests continue to be a key focus area for the group and encouragingly there were no fatalities for the year under review.

The board remains committed to promoting an ethical culture from the top as well as actively engaging stakeholders. We embrace the governance pillars of integrity, responsibility, fairness, transparency, honesty and accountability for all stakeholders, which assist in preserving our long-term sustainability so we can create stakeholder value.

Our corporate governance approach, outcomes and framework are detailed in the group's corporate governance report on

Thank you to our employees, who continue to focus on enhancing the customer experience and delivering memorable experiences for our guests. We remain optimistic about the group's future.

SAM SITHOLE	ANTHONY LEEMING
Chairman	Chief executive
31 March 2023	31 March 2023

2022 SUN INTERNATIONAL Environmental, social and governance report (ESG)

		SUSTAINABLE VALUE	ENVIRONMENTAL	SOCIAL	SUPPORTING GOOD	ANNEXURE	CORPORATE DATA AND		4
	STRATEGIC LEADERSHIP	CREATION	PERFORMANCE	PERFORMANCE	GOVERNANCE	JSE METRICS	ADMINISTRATION

Leadership message	Board of directors
Executive management

BOARD OF DIRECTORS as at 31 December 2022

			Committee
Board member	Title	Qualifications	Appointed memberships Experience

EXECUTIVE MANAGEMENT

Title

Qualifications

Experience

S (SAM) SITHOLE (50)

GW (GRAHAM)

DEMPSTER (67)

AM (ANTHONY) LEEMING

(53)

1. (NORMAN)
   BASTHDAW (55)

1. (ENRIQUE)
   CIBIE (69)

CM (CAROLINE) HENRY

(56)

SN (SINDISIWE) MABASO-KOYANA (53)

MLD (DAWN)

MAROLE (62)

TR (TAPIWA)

NGARA (41)

NT (NIGEL)

PAYNE1 (63)

Non-	BAcc (Hons),	2018	Chairman:	• Finance and investment industries expertise
executive	CA(SA), ACA, CA(Z),									• Sound business and leadership experience
chairman	PLD (Harvard		Member:
	Business School)
	Advanced Diploma
	in Banking (UJ)
Lead	BCom, CTA,	2017	Chairman:	• Banking and finance (local and international)
independent	CA(SA), AMP									• Sound business and leadership experience
non-	(Harvard)		Member:
executive
Chief	BCom, BAcc,	2013	Chairman:	• Gaming and hospitality
executive	CA(SA)									• Financial and corporate finance
			Member:	• Governance and IT
Chief	BCompt (Hons),	2017	Member:	• Corporate finance advisory and private equity
financial	CTA, CA(SA),									• External and internal audit
officer	MCom, HDip									• Financial management expertise
	(Company Law)
Independent	BA, CA (Pontificia	2014	Member:	• International gaming
non-	Universidad Católica									• Sound business experience
executive	de Chile),
	MBA (Stanford)
Independent	BCom, BCompt	2016	Chairman:	• Finance and investing experience
non-	(Hons), CA(SA)									• Treasury, debt capital markets and retirement funds
executive			Member:	• Sound business experience
Independent	BCom (Hons),	2020	Chairman:	• Finance and investing expertise including private
non-	CA(SA)									equity
executive			Member:	• Sound business and leadership experience
			• Auditing and risk management expertise
Independent	BCom (Accounting),	2022	Member:	• Finance and investing
non-	MBA (North Eastern									• Financial regulation
executive	University, Boston)									• Sound business and leadership experience
Non-	BBusSc, PGDA	2019	Chairman:	• Finance and investing expertise
executive	(UCT), CA(SA),									• Capital allocation expertise
	MBA (London		Member:	• Sound business, investor relations and leadership
	Business School)									experience
Independent	Economics and	2021	Member:	• Global sport betting and alternate gaming expertise
non-	Accounting (Hons),									• Sound business and leadership experience
executive	Executive MBA									• Group finance, business development and IT

ANTHONY	Chief executive	BCom, BAcc, CA(SA)	• Gaming and hospitality
LEEMING			• Financial and corporate finance
(53)			• Governance and IT
NORMAN	Chief financial	BCompt (Hons), CTA,	• Corporate finance advisory and private equity
BASTHDAW	officer	CA(SA), MCom,	• External and internal audit
(55)		HDip (Company Law)	• Financial management expertise
GRAHAM
Chief operating	BCom, BCompt (Hons),	• Strategic leadership
WOOD	officer: Resorts and	CA(SA)	• Commercial and operational expertise in the
(53)	Hospitality		gaming, hospitality and tourism industry
ANDREW
Director: Corporate	BA, LLB, FCIS, PGDip	• Legal, secretarial, compliance, sustainability and
JOHNSTON	services and group	(Environmental Law),	corporate and remuneration governance
(57)	company secretary	Certificate in Advanced	• Corporate finance and investor relations
		Corporate Law and	• Admitted attorney and certified ethics officer
		Securities Law
VERNA	Director:	BProc, Certificate	• Management of labour risk
ROBSON	Group human	in Advanced	• Human resources
(51)	resources	Human Resources	• Organisational restructure
		Management,	• Management of B-BBEE compliance
		MBA Core
MIKE	Director:	BCom, BCom (Hons),	• Business finance
WILSON	Business support	PGDA, CA(SA)	• Business process optimisation
(52)	management		• Project management
			• Shared service centre
KHATI
Director:	BCom, BAcc, ACMA,	• Financial management
MOKHOBO	Strategic projects	CA(SA)	• Forensic investigations
(57)			• New business development
			• Commercial project execution
			• Gaming and hospitality
			• Stakeholder management
PRAGASEN	Chief information	BCom: Business	• IT strategy
PATHER	officer	Management	• Information management and cyber security
(47)			• IT governance risk and compliance
			• Business continuity management
			• Project execution
BOTLHALE	Director:	BCom, BCom(Hons),	• Financial and corporate finance
MADITSE	SIML Finance	CA(SA), MBA	• Shared services
(43)			• Auditing and risk management expertise
			• Financial management
			• Commercial expertise
HELEN	Chief marketing and	PR and Communications	• Marketing and brand strategist
STEWART	sales officer	Diploma (Wits),	• Digital marketing
(57)		Business Coach,	• Social media strategy

Z (ZIMKHITHA)	Independent	BCom, HDipAcc,	2018	Chairman:	• Expert in entrepreneurship and strategic insights
ZATU MOLOI	non-	MSc Corporate				• Strong financial and operational expertise
(39)	executive	Finance, CA(SA)		Member:	• Consulting in commercial and business practices
						• Sound governance, business and leadership experience

• Driving innovation in financial services

		International Coaching	• CRM and loyalty expertise
		Federation (ICF), EDP
		• Business coach and mentor
		(Wits)
MUXE
Director:	BAcc, CA(SA), CIA, MBA	• External and internal audit
MAMBANA	Internal audit		• Financial management
(37)			• Forensics
			• Corporate governance, risk and compliance

Total collective skills matrix

Strategy

11

(2021:

12)

Finance

10

(2021: 9)

Commercial

Executive

9

(2021:

7)

3

(2021: 3)

management

Gaming and

Community/

3

(2021:

3)

2

(2021: 2)

hospitality

stakeholder

Risk

engagement

3

(2021:

2)

International

2

(2021: 2)

Policy

2

(2021:

1)

COMMITTEE MEMBERSHIP KEY:

Social and ethics committee Nomination committee Audit committee

Risk committee

Remuneration committee

Investment committee Executive committee

1 British

• Diverse industry experience

Please refer to the corporate website link for the detailed CVs of Sun International's general managers, who are all standing invitees: https://corporate.suninternational.com/about/general-management/

2022 SUN INTERNATIONAL Environmental, social and governance report (ESG)