SUN LIMITED ABRIDGED FINANCIAL STATEMENTS The Group’s unaudited results for the quarter and nine months ended 31 March 2019 are as follows:

Sun Limited is a one of the leading hotel groups in Mauritius which operates through four clusters, namely: Hotel Management, Centralised Services, Asset Management and Real Estate. It currently owns and/or manages six resorts in the Republic of Mauritius: Shangri-La’s Le Touessrok Resort & Spa, Four Seasons Resort Mauritius at Anahita, Long Beach, Sugar Beach, La Pirogue, Ambre and Kanuhura in the Republic of Maldives.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (ABRIDGED)

QUARTER ENDED 31 MARCH 2019

NINE MONTHS ENDED 31 MARCH 2019

2019 2018 2019 2018Restated Restated

Rs’000 Rs’000 Rs’000 Rs’000

Revenue 1,762,785 1,901,632 5,211,042 5,224,496 Other income 14,192 12,997 27,232 12,763 Operating expenses (1,350,009) (1,368,998) (4,158,561) (4,077,880)

Earnings before interest, tax, depreciation and amortisation 426,968 545,631 1,079,713 1,159,379

Depreciation and amortisation (146,410) (135,457) (425,662) (408,873)Operating profit 280,558 410,174 654,051 750,506 Finance costs (113,509) (113,590) (350,819) (357,280)Finance income 3,904 2,401 12,079 7,775 Share of net profit on joint ventures 1,781 - 1,781 - Loss on disposal of subsidiary (5,262) - (5,262) - Profit before tax 167,472 298,985 311,830 401,001 Income tax charge (32,149) (49,815) (70,799) (82,529)Profit for the period 135,323 249,170 241,031 318,472

Other comprehensive income net of tax 77,581 (196,635) 172,530 (309,331)Total comprehensive income for the period 212,904 52,535 413,561 9,141

Profit attributable to:Owners of the Company 129,289 240,627 227,545 297,653 Non-controlling interests 6,034 8,543 13,486 20,819

135,323 249,170 241,031 318,472

Total comprehensive income attributable to:Owners of the Company 206,870 43,992 400,075 (11,678)Non-controlling interests 6,034 8,543 13,486 20,819

212,904 52,535 413,561 9,141

Basic earnings per share (Rs) 0.74 1.46 1.30 1.81

CONSOLIDATED GEOGRAPHICAL AND SEGMENTAL INFORMATION

QUARTER ENDED 31 MARCH 2019

NINE MONTHS ENDED 31 MARCH 2019

2019 2018 2019 2018Restated Restated

Rs’000 Rs’000 Rs’000 Rs’000Geographical revenue:Mauritius 1,457,025 1,599,841 4,448,230 4,530,428 Maldives 188,485 170,099 395,370 331,059 Others 117,275 131,692 367,442 363,009 Total revenue including other income 1,762,785 1,901,632 5,211,042 5,224,496

Geographical results:Mauritius 118,210 235,758 331,515 456,809 Maldives 11,286 15,260 (103,136) (127,323)Others 5,827 (1,848) 12,652 (11,014)Profit for the period 135,323 249,170 241,031 318,472

Segment revenue:Hotel operations - External sales 1,645,510 1,769,940 4,843,600 4,861,487 Hotel operations - Inter-segment sales 83,004 99,008 252,111 264,415

1,728,513 1,868,948 5,095,711 5,125,902 Others - External sales 115,675 131,692 367,442 363,009 Elimination of inter-segment sales (83,004) (99,008) (252,111) (264,415)Total revenue including other income 1,762,785 1,901,632 5,211,042 5,224,496

Segment results:Hotel operations 129,496 251,018 228,379 329,486 Others 5,827 (1,848) 12,652 (11,014)Profit for the period 135,323 249,170 241,031 318,472

CONSOLIDATED STATEMENT OF CASH FLOWS (ABRIDGED)NINE MONTHS ENDED

31 MARCH 2019

2019 2018Restated

Rs’000 Rs’000Operating profit before working capital changes 1,183,605 1,216,791 Changes in working capital (84,130) (49,803)Cash generated from operations 1,099,475 1,166,988 Income taxes paid (16,784) (13,886)Net cash flows from operating activities 1,082,691 1,153,102 Net cash flows used in investing activities (302,920) (601,658)Net cash flows used in financing activities (586,691) (134,669)Net increase in cash and cash equivalents 193,080 416,775 Cash and cash equivalents at 1 July 411,000 171,437 Net cash and cash equivalents at 31 March 604,080 588,212

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (ABRIDGED) THE GROUP

Attibutable to owners

of the Company

Non-controlling

interests

Total equity

Rs’000 Rs’000 Rs’000

At 1 July 2017 7,426,828 792,992 8,219,820 Issue of shares 1,834,997 - 1,834,997 Total comprehensive income for the period (11,678) 20,819 9,141

At 31 March 2018 9,250,147 813,811 10,063,958

At 1 July 2018 10,041,019 822,302 10,863,321 Total comprehensive income for the period 400,075 13,486 413,561

At 31 March 2019 10,441,094 835,788 11,276,882

NOTES TO THE ABOVE:

The Group’s financial statements for the quarter ended 31 March 2019 have been prepared using the same accounting policies and methods adopted in the Financial Statements for the year ended 30 June 2018, audited by Messrs. PricewaterhouseCoopers, Chartered Accountants, except for the following changes in standards and interpretations which were adopted with effect from 1 July 2018:

1. IFRS 9 Financial Instruments under which the new impairment model requires the impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as was the case under IAS 39. This, however, has not resulted in any material impact on the reported financial position or results of the Group.

2. IFRS 15 Revenue from contracts with customers, under which expected cash rebates payable to tour operators are accounted for as a reduction in revenue, as and when the performance obligation is satisfied. This has resulted in a 4% decrease in rooms’ revenues with a corresponding decrease in commission expense. The corresponding period of the prior year has been restated to enable meaningful comparison.

3. Prior year comparatives have also restated to take into account the change in effective tax rate from 15% to 17% resulting from the recognition of Corporate Social Responsibility (CSR) as a tax and the treatment of the sales and leaseback of the Invest Hotel Scheme (IHS) rooms at Long Beach as finance leases. This has resulted in a decrease in profit after tax of Rs 8 million.

The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Statements. The Group’s principal activity is in the hospitality industry. Hence, performance is subject to seasonality and varies significantly from quarter to quarter.

COMMENTS ON THE RESULTS

Financial results

Quarter Highlights The hospitality industry in Mauritius is faced with reduced demand with tourist arrivals over the quarter showing a decline of 4.5% in arrivals by air. In addition, the Rupee remained strong against our major trading currencies over the same quarter last year with a direct impact on our revenue base and yield. However, in Maldives, the industry is experiencing significant growth with tourist arrivals increasing by 15% compared to same period last year.

Against the challenging environment locally, the Group experienced a difficult quarter with revenues at Rs 1.76 billion, 7% down against the previous year with the Mauritian resorts accounting mainly for this shortfall as Kanuhura in the Maldives improved its revenues by 11%. Group occupancy in Mauritius fell by 9 percentage points against same corresponding quarter last year to finish at 69.6%, in line with the industry trend while in the Maldives, Kanuhura, improved its occupancy by 15.7 percentage point over last year to finish at 63.8%. Our group ADR closed at Rs 11,329, down 2% for the same period last year, primarily due to the strong Rupee. Consequently, RevPAR receded by 11% against same quarter last year.

Group EBITDA finished at Rs 427 million, impacted by the revenue shortfall and down by 22% compared to the corresponding quarter last year. The Group finished with a post-tax profit of Rs 135 million, which represents a decrease of Rs 114 million over the same quarter last year.

9 months Highlights Tourist arrivals in Mauritius for the 9 months to-date totalled 1,104,727 representing a 3% increase over the same period last year. Excluding arrivals by cruises, air arrivals showed a marginal increase at 1.2%. In the Maldives, arrivals for the period totalled 1,240,737, showing a 7.6% growth against same period last year.

Group revenues of Rs 5.2 billion were almost flat against last year as the downward trend noted in the local industry since the end of last year has impacted the overall performance to-date. Group occupancy in Mauritius fell by 4.2 percentage points over same period last year to finish at 75.3%, though Kanuhura occupancy increased by 12.7 percentage point and RevPAR by 11% over the prior period. Overall Group occupancy finished at 73.9%, losing 3.4 percentage point against the corresponding period last year. The Group ADR at Rs 9,987, grew by 4% despite the negative impact of the Rupee exchange rate.

Against this background, EBITDA finished at Rs 1.1 billion, 7% down against the previous period. Depreciation and amortisation charges were higher at Rs 425.7m, due to the higher asset base of the newly refurbished resorts and the revaluation done in the last financial year. The Group posted a post-tax profit of Rs 241 million, which represents a decrease of Rs 77 million against the corresponding period of last year.

Outlook The continuing decline in tourist arrivals in Mauritius, from key markets, coupled with the strong Rupee exchange rate, is expected to negatively impact the Group’s results in the last quarter of the year. In the Maldives, the market conditions remain structurally challenging with a significant number of new resorts opening and thereby putting increased pressure on our ability to achieve our target room rates. This is affecting, as a direct consequence, the current and expected profitability levels of our Kanuhura Resort. In this persistently adverse environment, Management is currently conducting an impairment assessment of this existing asset .This could potentially have a material non-cash impact on the reported profit of the Group at the end of this financial year.

By Order of the Board

CIEL Corporate Services Ltd Company Secretary

13 May 2019

This announcement is issued pursuant to Listing Rule 12.20 and the Securities Act 2005.The Board of Directors of Sun Limited accepts full responsibility for the accuracy of the information contained in this report.

The statement of direct and indirect interests of officers of the Company required under rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007 is available upon request from the Secretary, free of charge at CIEL Corporate Services Ltd, Ebène Skies, Ebène, Mauritius.

Registered Office 5th floor, Ebène Skies Rue de L’institut, Ebène

Transfer Office MCB Registry & Securities Ltd. Sir William Newton Street, Port Louis

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (ABRIDGED)31 MAR

201930 JUN

2018

Unaudited AuditedRs’000 Rs’000

ASSETSNon-current assetsProperty, plant and equipment 17,617,026 17,785,302 Intangible assets 1,996,861 2,016,811 Investments in associates and Joint Ventures 747,722 702,445 Other non current assets 730,050 774,577

21,091,659 21,279,135 Current assets 1,987,316 1,621,042 Total assets 23,078,975 22,900,177

EQUITY AND LIABILITIESShareholders’ equity 10,441,094 10,041,019 Non-controlling interests 835,788 822,302 Total equity 11,276,882 10,863,321

Borrowings 7,908,712 8,516,048 Deferred tax liability 871,816 831,535 Provisions 80,218 80,218 Deferred revenue 63,580 64,534 Employee benefit liability 295,528 269,621 Non-current liabilities 9,219,854 9,761,956 Current liabilities 2,582,239 2,274,900 Total liabilities 11,802,093 12,036,856

Total equity and liabilities 23,078,975 22,900,177 Total net interest-bearing loans and borrowings 7,626,413 8,218,353

Gearing ( Excluding Finance lease obligation ) 40.3% 43.1%