NEW MAURITIUS HOTELS : | Integrated Annual Report 2023

Integrated

Annual Report 2023

N E W M A U R I T I U S H O T E L S L I M I T E D

People first culture

The Integrated Annual Report is published in its entirety on the Company's website:

w w w . b e a c h c o m b e r . c o m

Dear Valued

SHAREHOLDERS

This Integrated Report comprises a suite of reports, namely the Risk Management Report, the Corporate Governance Report and the Audited Financial Statements, prepared in line with best practice and in accordance with the National Code of Corporate Governance for Mauritius (2016) and Mauritius Companies Act 2001. It addresses all material matters affecting the Group through its operations in Mauritius, Seychelles and Morocco, and reflects fairly the Group's integrated performance.

The report was approved by the Board of Directors on 29 September 2023.

We look forward to meeting you at our next Annual Meeting to be held on 22 December 2023.

Yours sincerely,

Gilbert ESPITALIER-NOËL

Chairman

29 September 2023

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NEW MAURITIUS HOTELS LIMITED | Integrated Annual Report 2023

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About OUR REPORT

Our Integrated Reporting Journey

Feedback

The NMH Group's Integrated Annual Report for 2023 is tailored to meet the needs of financial capital providers and various stakeholders. This document is aligned with the guiding principles and key concepts of the International Integrated Reporting Council ("IIRC") framework, disclosing our value creation process through a series of comprehensive reports.

Forward-Looking Statements

This document may contain forward-looking statements expressing our expectations or forecasts regarding future events. Such statements, identified by terms like "believe," "anticipate," "intend," "seek," "will," "plan," "could," "may" and others, reflect our best judgement at the time of writing. However, actual developments and outcomes may differ considerably due to risks, uncertainties and other significant factors.

We expressly state that we have no obligation to amend or update any forward-looking statement should it prove inaccurate at a later stage, whether due to new information, future events or any other reasons. We advise investors against placing excessive reliance on any forward-looking statements published in this document, as they have not undergone review or reporting by the Group's independent external auditor.

We appreciate your feedback on how we address topics that matter to you as we continue to work on enhancing our reporting. For feedback and enquiries, please visit: www.beachcomber.com

Board Responsibility Statement

The Board of Directors of NMH recognises its obligation to uphold the integrity and accuracy of this Integrated Annual Report. Using collective judgement, the Board believes the report adequately addresses material matters concerning our strategy and the creation and sustenance of value over the short, medium and long term. This document sufficiently covers the use and effects on our capitals, as well as how their availability is affecting the Group's strategy and business model. The Board affirms adherence to the IIRC framework in preparing this report.

This report provides a balanced view of the Board's strategy and its relation to the organisation's value creation ability in the short, medium and long term.

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Integrated Annual Report 2023 | NEW MAURITIUS HOTELS LIMITED

Table

OF CONTENTS

12 A word from our Chairman

16	Message from our Executive Team
21	Environment
	• Making Sustainability a Valuable Asset
	• Key Highlights
29	• Measuring our Progress
Artisans
36	• An Inclusive Work Environment
Community Inclusiveness

• FED, a Legacy of Empowerment

41 Guest Journey

• Delivering on our Promise

46 • Our Hotel Portfolio

Performance

49	• Highlights
• Financial Matters
Risk Management
• Risk Management Report
61	Governance
	• Corporate Governance Report
174	• Statutory Disclosures
• Notes to the Financial Statements
F A Q

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Glossary

OF TERMS

AMS	Annual Meeting of Shareholders
ARC	Audit and Risk Committee
ARR	Average Room Revenue
bn	Billion
BHI	Beachcomber Hospitality Investments Ltd
BMS	Building Management System
Board	The Board of Directors of NMH
BoM	Bank of Mauritius
BREEAM	Building Research Establishment Environmental
	Assessment Method
CDS	Central Depository & Settlement Co. Ltd
CEO	Chief Executive Officer
CGC	Corporate Governance Committee
CO2	Carbon dioxide
CMMS	Computerised Maintenance Management System
CSR	Corporate Social Responsibility
DMC	Destination Management Company
EBITDA	Earnings before Interest, Taxation, Depreciation
	and Amortisation
EIA	Environmental Impact Assessment
ENL	ENL Limited, a public company incorporated in
	Mauritius bearing business registration number
	C06000648 and listed on the Official Market of the SEM
EUR	Euro
FED	Fondation Espoir Développement Beachcomber
FTO	Federation of Tour Operators
FY	Financial year
GBP	Great Britain pound sterling
GDPR	European General Data Protection Regulation
GNS	Guest Night Spending
Grit	GRIT Real Estate Income Group Limited, a public
	company incorporated in Mauritius bearing
	business registration number C128881 C1/GBL
	and listed on the Official Market of the SEM
H&S	Health & Safety
HT	High Tension

IIRC	International Integrated Reporting Council
ISO	International Organisation for Standardisation

• Thousand

KPI	Key Performance Indicator
kVA	Kilovolt-ampere
kW	Kilowatt

• Million

MIC	Mauritius Investment Corporation Ltd,
	a private limited company, fully owned
	by the Bank of Mauritius
MJ	Megajoule
MSDG	Medium-Scale Distributed Generation
MUR	Mauritian rupee
MW	Megawatt
NAV	Net Asset Value
NAVPS	Net Asset Value per Share
NGO	Non-Governmental Organisation
NMH,	New Mauritius Hotels Limited, a public
Company,	company incorporated in Mauritius bearing
Group	business registration number C06001439
	and listed on the Official Market of the SEM
NOI	Net Operating Income
Official	Official Market of the Stock Exchange of Mauritius
Market
PAT	Profit after Tax
PEJ	Projet Employabilité Jeunes
PIE	Public Interest Entity
PV	Photovoltaic
ROE	Return on Equity
Rogers	Rogers and Company Limited, a public company
	incorporated in Mauritius bearing business
	registration number C06000706 and listed
	on the Official Market of the SEM
ROI	Return on Investment
SC	Strategy Committee
SEM	Stock Exchange of Mauritius Limited
TO	Tour Operator
TRevPAR	Total Revenue per Available Room

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General

OUTLOOK

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A word from our Chairman

Dear Valued Shareholders,

I am honoured to address you in my new role as Chairman of New Mauritius Hotels Limited ("NMH," the "Group" or the "Company") and present the Integrated Annual Report of the Group for the year 2023. This report has been drawn up in adherence to the principles and guidelines set forth by the International Integrated Reporting Council's Integrated Reporting Framework, the National Code of Corporate Governance for Mauritius (2016) and the provisions of the Mauritius Companies Act 2001.

2023 marks a year of	transition,	as	we bid	farewell
to Hector Espitalier-Noël,	who retired	as	Chairman	of NMH

on 30 June after 26 years leading our Board. He will continue to serve as a Director and on behalf of the Board, I would like to express my gratitude for his leadership and contributions.

Hector's vision has left an indelible mark on the Group, shaping our path over the years. I step into the role of Chairman with a commitment to preserving and advancing the legacy that he has built. As we look to the future, I also wish to extend my sincere thanks to the Board members for placing their trust in me.

On 1 July 2023, we welcomed Stéphane Poupinel de Valencé to the role of Group CEO. With his guidance, deep sense of leadership and strong commitment, I am confident in our ability to lead NMH into the next chapter of its growth.

Embracing Growth

Globally, in the year under review, tourism continued to recover at a strong pace. Building on this prevailing trend, the Mauritian destination posted a remarkable performance. NMH kept the pace with occupancy rates surpassing pre-crisis levels. All of our Business Units showed solid growth.

None of these accomplishments would have been possible without the commitment and dedication of our Artisans. NMH has experienced both prosperous years and challenging moments, yet we have always showcased adaptability and resilience. I offer heartfelt appreciation to each of our 4,900 Artisans for their consistent hard work and commitment to delivering service excellence, which have been our driving force. They are at the heart of what we do.

While this remarkable year inspires optimism, we remain mindful of the lessons from history, emphasising the need for a cautious approach as we move on our journey and navigate the future.

Commitment to Sustainability

Sustainability is part of our values and corporate culture. We are focused to positively impact the environment and the communities where our hotels are located. We hence take pride in being the first hotel group in Mauritius to achieve EarthCheck Gold Certification.

"Feel the Happiness You Give" - Our Artisan Promise This year, we launched our employer brand which underscores our commitment to our people - our Artisan Value Proposition, "Feel the Happiness You Give". Rooted in our People & Culture strategy, it encapsulates our commitment to our Artisans, making them central to our corporate philosophy.

Acknowledgements

I would like to extend my sincere appreciation to all our stakeholders for their support and contributions to the Group's continuous growth. Our journey towards success has been made possible through the unwavering commitment and loyalty of our guests, partners, shareholders and the NMH team.

I wish to commend the dedication of my fellow Directors, whose expertise and tireless efforts have played a key role in advancing NMH's mission. Their commitment to excellence continues to drive our organisation forward.

Let me also take a moment to pay a special tribute to Sunil Banymandhub, a long-standing member of the Board of Directors who has recently retired from his role. We extend our appreciation and thanks for his significant contributions.

It is our collective effort that will continue to shape the future of NMH and elevate the hospitality experience for all. As we reflect on our accomplishments and drive towards a sustainable future, I am truly grateful to each and every one of you for being a part of our journey.

Gilbert ESPITALIER-NOËL

Chairman

29 September 2023

"I offer heartfelt

appreciation to each of our 4,900 dedicated

Artisans for their consistent hard work and commitment to delivering service excellence, which has been our driving force."

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KeyFIGURES

THE GROUP

	Year ended	Year ended	Year ended
	30 June	30 June	30 June
STATEMENT OF PROFIT OR LOSS	2023	2022	2021
Revenue	Rs m	Rs m	Rs m
14,084	8,115	1,137
Earnings/(Loss) before interest, income tax, depreciation and amortisation	4,741	2,036	(1,991)
Profit/(Loss) before tax
2,809	66	(3,635)
Income tax (expense)/credit	(527)	(20)	505
Profit/(Loss) for the year	2,282	45	(3,130)
Non-controlling interests	(163)	(110)	(43)
Profit/(Loss) attributable to owners of the parent	2,119	(65)	(3,173)
	As At	As At	As At
	30 June	30 June	30 June
STATEMENT OF FINANCIAL POSITION	2023	2022	2021
Non-current assets	Rs'm	Rs'm	Rs'm
37,797	37,109	35,512
Current assets	4,402	3,650	2,740
Total assets	42,199	40,759	38,252
Ordinary share capital	2,780	2,780	2,780
Redeemable convertible secured bonds	1,833	1,833	1,103
Retained earnings	2,311	1,198	1,070
Other components of equity	2,069	2,990	1,168
Shareholders' funds	8,993	8,801	6,121
Preference share capital	1,927	-	-
Non-controlling interests	90	476	(59)
Total equity	11,011	9,278	6,062
Non-current liabilities	21,354	19,988	20,042
Current liabilities	9,834	11,494	12,148
Total liabilities	31,188	31,482	32,190
Total equity and liabilities	42,199	40,759	38,252
DISTRIBUTION TO SHAREHOLDERS	-
Cancellation of dividend payable	-	82
Dividends (Note 1)	-	-	-
Dividends to preference shareholders	23	24	24
KEY FINANCIAL RATIOS	2023	2022	2021
Head count	4,878	4,647	5,052
Number of room keys available	2,148	2,148	2,148
Room nights available for the year	784,020	784,020	784,020
Number of guests nights	1,262,092	695,855	132,541
Occupancy (%)	73	42	10
TRevPAR (Rs)	14,252	7,956	979
Earnings/(Loss) per share (Rs)	3.86	(0.12)	(5.78)
Dividends per share (Rs)	-	-	-
Interest cover (x)	4.02	1.88	(2.04)
Net asset value per share (Rs)	20.06	16.90	11.04
Return on equity (%)	20.73	0.49	(51.63)
Return on assets (%)	5.41	0.11	(8.18)
Net debt/Total assets (%)	43	49	58
Gearing (%)	62	68	79
Net debt/Equity (%)	164	213	368

Note 1 : Dividend for FY20 was cancelled in FY21.

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ValueADDED STATEMENT

	THE GROUP
	Year ended	Year ended
	30 June 2023	30 June 2022
	Rs m	Rs m
Revenue	14,084	8,115
Value added tax	1,924	1,082
Total revenue	16,008	9,197
Payment to suppliers for material and services	(5,537)	(4,141)
Value added by operations	10,471	5,057
Finance revenue and other income	375	62
Other (losses)/gains	298	(3)
Fair value gain/(loss) on Investment property	109	(19)
Gain on disposal of subsidiaries/gain on business combination	236	-
Other impairment (losses)/reversal	(129)	326
Total wealth created	11,360	5,423
Wealth distributed	1,356
Debt providers	1,085
Shareholders	4,396	784
Government	1,707	488
Employees	3,901	3,066
	11,360	5,423

WEALTH DISTRIBUTED (2023)		WEALTH DISTRIBUTED (2022)
12%
Debt providers	56%
Employees
34%	Employees	Debt providers
		20%

	Shareholders
Government	39%	14% Shareholders
15%	10%	Government

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Message from our Executive Team

Throughout the year under review, the travel and tourism sector demonstrated a steady recovery, marked by improved air connectivity, growing enthusiasm for travel and the easing of travel restrictions. The growth in travel demand benefitted all Group operations. Consequently, we are pleased to report commendable results for the year ended 30 June 2023. The Group achieved a turnover of Rs 14.1bn (FY22: Rs 8.1bn), an EBITDA of Rs 4.7bn (FY22: Rs 2.0bn), and a profit after tax of Rs 2.3bn (FY22: Rs 45m). All Group subsidiaries were profitable.

Mauritius	the lease agreement. The property was revalued at year-end,
Mauritius welcomed 1.2 million tourists during the financial year, a	resulting in a gain of Rs 109m being recognised (FY22: loss of
significant upswing from the previous year, though not reaching	Rs 19m). EBITDA for the year stood at Rs 510m (FY22: Rs 372m).
pre-pandemic levels.

refurbishment of infrastructure facilities and rooms which required the closure of some 200 rooms. We have invested approximately Rs 0.7bn in these projects.

Additionally, work has progressed on the Harmonie Beachcomber project in Black River. The 6-hectare plot of land designated for the

Revenue from operations in Mauritius reached an unprecedented high of Rs 11.2bn (FY 22: Rs 6.1bn), supported by an average occupancy rate of 73.8% (FY22: 41.4%). Additionally, performance was bolstered by favourable euro and pound sterling exchange rates compared to the Mauritian rupee, generating treasury gains of Rs 0.3bn.

However, on the cost side, persistent inflationary pressures were experienced throughout the year. The prolonged conflict between Russia and Ukraine contributed to increased commodity prices, while a slowdown in activity in China disrupted the supply chain. Persistently high headline inflation maintained pressure on interest rates and labour costs. Despite these challenges, operational margins remained robust.

The year's EBITDA stood at Rs 3.6bn, a significant boost from the Rs 1.0bn reported in FY22.

Morocco

Operations in Morocco experienced a notable pickup in activity, reaffirming the hotel's positioning as a premier luxury resort in Marrakech. Both the occupancy rate and average room rate showed year-on-year growth. Additionally, growth in average guest spending was attributable to golfing activities, ballroom facilities and food and beverage operations.

As a result, revenue for the year recorded a substantial increase, reaching Rs 1.2bn (FY22: Rs 0.8bn). Furthermore, operating margins improved, resulting in an EBITDA of Rs 249m (FY22: Rs 119m before reversal of impairment) and a profit for the year of Rs 93m.

Seychelles

In February 2023, the annual rent for the hotel on Sainte Anne Island in Seychelles, leased to Club Med, was raised by 2% as per

Tour Operating Activities

Our tour operating companies in South Africa, UK and France continue to serve as primary sources of guests for our resorts. Substantial growth was observed in this segment of our business, reflecting the pent-up demand for travel despite increased airfares. Turnover from this segment, including Mautourco, has surged by an impressive 69% year-on-year and profit after tax has more than doubled to Rs 0.4bn.

Key Focus Areas

Maintaining a safe and conducive workplace remains essential in our efforts to attract and retain talent. This, in turn, allows us to deliver on our commitment to our guests. The People and Culture team initiated 28 projects aimed at enhancing the experience and value proposition for our Artisans. Our objective is to build a resilient, content and highly-skilled team that shares common values and strives to deliver their best.

Reducing our existing debt remains a top priority. We successfully refinanced bonds amounting to Rs 825m, due in November 2022, with bank support. Additionally, we are diligently repaying the existing loans as scheduled, using our operating cash flows.

We remain committed to our digitalisation journey to enhance the guest experience and elevate service quality. We are making substantial investments in hardware and software to modernise our current architecture for efficiency gains.

Project Updates

Paradis Beachcomber underwent a four-month closure from June 2023 for extensive refurbishment of 128 rooms and suites, as well as the introduction of new food concepts in two refurbished restaurants. Simultaneously, works are being undertaken at Shandrani Beachcomber and Canonnier Beachcomber for the

creation of a new wetland has been revalued to reflect its realisable value. All associated costs related to the previous hotel project have also been reassessed. As a result, a one-off impairment of Rs 129m has been recorded. A revised hotel design embracing modern and sustainable practices is being contemplated. Work is also underway for the development of an 18-hole golf course, with partial financing expected through the sale of golf memberships. Several membership contracts have been signed as of date.

Outlook

Group results for the first quarter of FY24 are expected to be negatively impacted by several factors, including the temporary closure of Paradis Beachcomber, ongoing refurbishment work at Canonnier Beachcomber and Shandrani Beachcomber, and room cancellations in September 2023 in Marrakech.

The earthquake that struck the Marrakech region on 8 September has not caused any structural damage to our buildings. Our immediate response was to ensure the safety of our guests and Artisans and give assistance to the affected neighbouring region. The resort is currently closed to undergo repair works for two weeks and the insurance proceeds, which are expected to fully cover the cost of these repairs and a portion of consequential losses, will only be recognised when received later in the year.

The outlook for the rest of the year is promising, with strong forward bookings and all refurbished rooms back in inventory by mid-November 2023. The Group anticipates an EBITDA of over Rs 4 bn for the full year, assuming no major change in prevailing conditions.

Stéphane Poupinel de Valencé	Pauline Seeyave
Chief Executive Officer	Chief Financial Officer
29 September 2023

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