Wrap Text
Reviewed Condensed Consolidated Financial Results For the year ended 31 March 2013
Tsogo Sun Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1989/002108/06)
Share code: TSH ISIN: ZAE000156238
(Tsogo Sun or the company or the group)
Reviewed Condensed Consolidated Financial Results
For the year ended 31 March 2013
- Income R9.9 billion up 10%
- Ebitdar R3.9 billion up 11%
- Adjusted earnings R1.6 billion up 24%
- Adjusted HEPS 150.3 cents up 24%
- Final dividend per share 51.0 cents up 28%
COMMENTARY
Trading during the financial year continued to reflect a recovery in macro-economic conditions, as experienced in the
second half of the prior year. Year-on-year growth was achieved in both casino and hotel revenues assisted by the merger
and acquisition activity undertaken as part of the groups stated growth strategy.
Tsogo Sun has continued to allocate capital during the 2013 financial year in terms of this strategy and accordingly:
- concluded the acquisition of Southern Sun Hyde Park for R130 million from Hyprop Limited, which was previously
operated under a management agreement. R65 million was paid on 1 September 2012 when the group began trading at the
hotel for its own account and the balance was paid on 17 May 2013 on transfer of the property;
- completed the refurbishment of 54 on Bath and opened the hotel on 8 August 2012;
- acquired the hotel at the Garden Route casino which was transferred on 10 August 2012 and has been branded Garden
Court Mossel Bay;
- commenced phase one of the refurbishment, consolidation and repositioning of the Southern Sun Elangeni and Maharani
hotels on the Durban beachfront;
- spent R231 million during the year on the redevelopment of the Hemingways casino in East London. The total spend on
this R400 million project to the end of March 2013 is R329 million, the work has largely been completed and the
residual payments due will be made during the 2014 financial year;
- commissioned an additional 96 slot machines at the Suncoast Casino and Entertainment World;
- spent R18 million during the year on the R200 million expansion of the Emnotweni casino, which includes the
construction of an expanded casino floor, additional gaming positions, additional covered parking, a conference and
eventing area and restaurants; and
- commenced an expansion programme for the three Gauteng-based casinos, including an additional 1 500 gaming
positions to be rolled out over the medium term. The group has committed R750 million in capital expenditure at
Silverstar and Gold Reef City and paid an amount of R150 million to the Gauteng Gambling Board to be allocated to
charitable or socio-economic infrastructure projects.
In addition to these acquisitions and expansion projects, the group also invested over R500 million on maintenance
capex group-wide ensuring our assets remain best in class.
Total income for the year of R9.9 billion ended 10% above the prior year with a 6.8% growth in gaming win assisted by
a 19% growth in hotel rooms revenue and a 16% growth in food and beverage revenue.
Earnings before interest, income tax, depreciation, amortisation, property rentals, long-term incentives and
exceptional items (Ebitdar) at R3.9 billion for the year reflected an 11% increase on the prior year. The overall group
Ebitdar margin of 39.2% is 0.4 percentage points (pp) above the prior year.
As previously reported, the underlying operations of the group remain highly geared towards the South African consumer
(in gaming) and the corporate market (in hotels) with both sectors still experiencing difficult economic conditions and
increased administered costs (electricity, water and property rates). The results for the year continue to reflect the
growth potential of the group should these sectors of the South African economy continue to improve.
Pleasingly, all gaming complexes, with the exception of The Caledon, showed growth in both revenue and Ebitdar.
Gauteng recorded provincial growth in gaming win of 6.7% for the year ended 31 March 2013 over the prior period.
Gaming win growth for the year of 7.1% was achieved at Montecasino, 3.5% at Gold Reef City and 7.2% at Silverstar.
Ebitdar margins improved at Montecasino and Silverstar and reduced slightly at Gold Reef City.
KwaZulu-Natal provincial gaming win grew by 9.3% for the year ended 31 March 2013 over the prior period. Gaming win
growth for the year of 11.2% was achieved at Suncoast Casino and Entertainment World, 5.5% at Golden Horse casino and
10.9% at Blackrock casino. Ebitdar margins improved marginally at Blackrock and weakened marginally at Suncoast and
Golden Horse, impacted by the introduction of increased gaming levies in the province.
Mpumalanga reported growth in provincial gaming win of 7.7% for the year ended 31 March 2013 over the prior period.
The Ridge casino in Emalahleni and the Emnotweni casino in Nelspruit reported growth in gaming win of 6.9% and 8.4%
respectively. Ebitdar margins improved at both units.
The Eastern Cape provincial gaming win grew by 9.3% for the year ended 31 March 2013. Hemingways reported growth in
gaming win of 7.7%, despite the impact of the redevelopment-related construction activities. Ebitdar margin reduced on
the prior year.
The Western Cape reported growth in provincial gaming win of 4.8% for the year ended 31 March 2013. The Caledon
Casino, Hotel and Spa, Garden Route casino in Mossel Bay and the Mykonos casino in Langebaan reported growth of 3.7%,
8.7% and 12.0% respectively. Improved Ebitdar margins were recorded at Mykonos with Garden Route and The Caledon margins
weakening due to the constrained revenue growth and the reallocation of certain head office costs.
The Goldfields casino in Welkom in the Free State experienced difficult conditions with growth in gaming win of 4.5%
on the prior year.
Other Gaming division operations, consisting of the Sandton Convention Centre, the StayEasy Century City hotel and
head office costs, reflected a net loss of R185 million, R35 million adverse to the prior period mainly due to an increase
in and change to the basis of the allocation of corporate costs.
Overall revenue for the Gaming division increased 8% on the prior year to R7.6 billion. Ebitdar improved 9% to R3.1
billion at a margin of 41.0%, 0.4pp above the prior year.
The hotel industry in South Africa is experiencing a recovery from the dual impact of depressed demand and oversupply.
Overall industry occupancies have improved to 60.9% (2012: 57.1%) for the year ended 31 March 2013. As a result of the
strong sales and distribution channels and the superior product and service quality available within the group, Tsogo
Sun Hotels continues to achieve an occupancy and rate premium in the segments in which the group operates.
Trading for the groups South African hotels for the year has been more buoyant recording a system-wide revenue per
available room (RevPar) growth of 10.6% on the prior year due mainly to an increase in occupancies to 64.1% (2012:
60.9%). Average room rates remain constrained with limited yielding opportunities and increased by 5% to R814. Overall
revenue for the South African Hotel division increased 19% on the prior year to R1.9 billion assisted by the inclusion of
Formula 1, 54 on Bath and Southern Sun Hyde Park offset by the closure of Southern Sun Grayston. Ebitdar improved 20% to
R615 million at a margin of 31.8%.
The Offshore division of hotels achieved total revenue for the year ended 31 March 2013 of R361 million representing
an 11% improvement on the prior year, driven by the weakening of the Rand against both the US$ and the Euro. Ebitdar
(pre-foreign exchange gains) of R93 million was achieved. The Rand weakness resulted in a R37 million (2012: R13 million)
foreign exchange gain on the translation of offshore monetary items.
Combined South African and offshore hotel trading statistics, reflecting the Tsogo Sun group owned hotels and
excluding hotels managed on behalf of third parties, are as follows:
31 March 31 March
2013 2012
Occupancy (%) 64.7 61.4
Average room rate (R) 782 802
RevPar (R) 506 492
Rooms available (000) 3 780 3 281
Rooms sold (000) 2 445 2 014
Rooms revenue (Rm) 1 914 1 615
The increase in occupancy and decline in average rate is affected by the inclusion of the Formula 1 hotels as owned in
the year compared to managed in the prior period. These hotels trade at a higher average occupancy and lower average
rate than the balance of the Tsogo Sun hotel portfolio.
Operating expenses, pre-exceptional items, long-term incentives and including employee costs for the year ended 31
March 2013, increased by 9% on the prior year mainly due to non-organic growth in the hotel business, increased
offshore overheads because of the weakening of the Rand against both the US$ and the Euro, above-inflationary increases
in administered costs and payroll-related costs (mainly as a result of the equalisation of benefits in the ex-Gold Reef
Resorts properties), offset by the foreign exchange gain on the translation of offshore monetary items and savings
initiatives.
Property and equipment rentals for the year ended 31 March 2013 at R258 million are 8% up on the prior year mainly due
to contractual increases during the year offset by the termination of the Southern Sun Grayston rental. Amortisation
and depreciation for the year ended 31 March 2013 at R608 million is 2% below the prior year due to a reassessment of
useful lives.
The long-term incentive expense for the year ended 31 March 2013 at R234 million is R179 million above the prior year
charge and reflects the effect of the increased long-term incentive liability (including dividend adjustments) due to
the Tsogo Sun share price increasing to R24.75 at 31 March 2013.
Exceptional losses for the year ended 31 March 2013 of R19 million relate mainly to goodwill, property, plant and
equipment and loan impairments, hotel pre-opening costs and transaction and restructure costs offset by the settlement
fees on termination of the Dubai hotel management contracts. Exceptional profits for the prior year of R385 million
relate mainly to a fair value adjustment to the existing Formula 1 equity investment of R179 million and the release
of the contingent purchase consideration for the 2009 Millennium transaction of R248 million offset by investment and
loan impairments of R45 million.
Net finance costs for the year ended 31 March 2013 of R385 million are 8% below the prior year as the cash generated
by the group has reduced steady-state borrowing levels despite the acquisitions during the year.
The groups share of associate and joint-venture profits of R6 million for the year ended 31 March 2013 reflected a R4
million decrease due to the consolidation of the Formula 1 business which was equity accounted in the prior year.
The effective tax rate for the year ended 31 March 2013 at 28.6% is affected by non-deductible expenditure such as
casino building depreciation and preference share dividends in the first quarter of the year. The comparative effective
tax rate of 29.3% is due to the non-taxable gains referred to above and a secondary tax on companies impact of R82
million in the prior year.
Profit attributable to non-controlling interests of R125 million for the year ended 31 March 2013 are 4% below the
prior year due to the acquisition of a further 16.5% of Suncoast in November 2011 offset by the 15% increase in the
non-controlling interests in Hemingways in September 2011.
Group adjusted headline earnings for the year ended 31 March 2013 at R1.6 billion are 24% above the prior year. The
number of shares in issue is largely unchanged year-on-year and thus adjusted headline earnings per share increased by
24% to 150.3 cents per share.
Cash generated from operations for the year ended 31 March 2013 increased by 10% to R3.7 billion. Cash flows utilised
for investment activities of R1.2 billion consisted mainly of maintenance capital expenditure and the acquisitions and
investments described above.
Interest-bearing debt net of cash at 31 March 2013 totalled R3.6 billion, which is R604 million below the 31 March
2012 balance of R4.2 billion, with R744 million paid in dividends to group and non-controlling shareholders in addition
to the investment activities during the year ended 31 March 2013.
PROSPECTS
The continued improvement in trading performance across the groups operations during the year remains encouraging.
However, the ongoing sustainability of this growth is uncertain due to the inconsistent monthly results during the
year. Nevertheless, the group remains highly cash generative and continues to pursue significant opportunities to invest
capital in its growth strategy.
Agreement has been reached with 89% of the outstanding shareholders in Durban Add-Ventures Limited (DAV) and 100% in
Adventure World Management Proprietary Limited for the acquisition of the remaining outstanding 10% effective interest
in Tsogo Sun KwaZulu-Natal Proprietary Limited. The transaction was implemented as a buy-back of shares, via a scheme of
arrangement in DAV, in accordance with the Companies Act of South Africa at a cost of around R400 million. All required
shareholders resolutions were passed at a general meeting of DAV and the transaction approved by the KwaZulu-Natal
Gambling Board on 10 May 2013.
Following the approval by the Gauteng Gambling Board of the additional gaming positions at Montecasino, Gold Reef City
and Silverstar the group will commence with the R480 million expansion and redevelopment of the Silverstar casino and
the R270 million refurbishment and expansion of the Gold Reef City casino and Theme Park. The Silverstar casino
redevelopment includes additional dining options, an outdoor events area, cinemas, ten-pin bowling alley, laser tag games,
an expanded and enhanced casino floor and parking. The Gold Reef City expansion includes an increased casino offering,
cinemas and additional restaurants at the casino and additional food and beverage outlets and improved access systems at
the Theme Park with an improved linkage to the casino complex.
The KwaZulu-Natal Gambling Board has granted an application for an additional 50 slot machines and three tables at
Blackrock casino. The group will also be expanding the Garden Court Blackrock hotel by an additional 40 rooms.
The group continues with its African expansion strategy and has entered into an agreement to acquire an approximate
75% stake in Ikoyi Hotels Limited for US$70 million. The property is currently managed by the group on behalf of the
third-party owners. The acquisition is subject to several conditions precedent, including regulatory approvals, and
shareholders will be notified once these are fulfilled and the acquisition becomes effective. In addition, the group will
invest US$30 million in the expansion of Southern Sun Maputo including the addition of 110 rooms and conference facilities,
the expansion of the existing restaurant, lobby and back-of-house facilities and the refurbishment of the existing rooms.
The group is also exploring a variety of projects, including the expansion of the Suncoast casino and related
entertainment facilities, as well as a number of potential acquisitions which are at various stages.
The potential to bid for the relocation of one of the smaller casinos in the Western Cape to the Cape Metropole
remains an opportunity for the group.
In February 2013 the group submitted a bid for the fourth casino licence in Mpumalanga in accordance with the process
being run by the Mpumalanga Gambling Board. Further announcements in this regard will be made as the bidding process
progresses.
The ability to continue to pursue the groups investment strategy will depend on the final outcome and impact of the
variety of proposed regulatory and tax changes considered by government and will require the successful interaction with
various regulatory bodies including gaming boards, city councils, provincial authorities and national departments. The
group continues to constructively engage with the various spheres of government in this regard.
DIVIDEND
The board of directors has declared a final gross cash dividend in respect of the year ended 31 March 2013 of 51.0
(fifty one) cents per share. The dividend has been declared in South African currency and is payable to shareholders
recorded in the register of the company at close of business on Friday, 14 June 2013. There are no STC credits. The number
of ordinary shares in issue at the date of this declaration is 1 097 975 609 (excluding treasury shares). The dividend
will be subject to a local dividend tax rate of 15%, which will result in a net dividend of 43.35 cents per share to those
shareholders who are not exempt from paying dividend tax. The companys tax reference number is 9250039717.
In compliance with the requirements of Strate, the electronic and custody system used by the JSE, the following dates
are applicable:
2013
Last date to trade cum dividend Friday, 7 June
Shares trade ex dividend Monday, 10 June
Record date Friday, 14 June
Payment date Tuesday, 18 June
Share certificates may not be dematerialised or rematerialised during the period Monday, 10 June 2013 and Friday, 14
June 2013, both days inclusive.
On Tuesday, 18 June 2013 the cash dividend will be electronically transferred to the bank accounts of all certificated
shareholders where this facility is available. Where electronic fund transfer is not available or desired, cheques
dated 18 June 2013 will be posted on that date. Shareholders who have dematerialised their share certificates will have
their accounts at their CSDP or broker credited on Tuesday, 18 June 2013.
SUBSEQUENT EVENTS
The directors are not aware of any matter or circumstance arising since the end of the financial year,
not otherwise dealt with within the financial statements, that would affect the operations or results of the group
significantly.
PRESENTATION
Shareholders are advised that a presentation to various analysts and investors which provides additional analysis and
information will be available on the groups website at www.tsogosun.com.
DIRECTORATE
With effect from 31 March 2013, Mr Meyer Khan retired from the board after 30 years service to the group. Mr Jamie
Wilson was appointed to the board with effect from 2 April 2013.
MN von Aulock RB Huddy
Chief Executive Officer Chief Financial Officer
23 May 2013
NOTES TO THE REVIEWED FINANCIAL STATEMENTS
1 BASIS OF PREPARATION
The reviewed condensed consolidated annual financial statements for the year ended 31 March 2013 have been prepared
in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS),
IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and the
requirements of the Companies Act of South Africa. CFO, RB Huddy CA(SA), supervised the preparation of the condensed
consolidated annual financial statements. The accounting policies are consistent with IFRS as well as those applied
in the most recent audited annual financial statements as at 31 March 2012. The reviewed condensed consolidated
annual financial statements should be read in conjunction with the annual financial statements for the year ended
31 March 2012, which have been prepared in accordance with IFRS. This report has been reviewed by the groups auditors,
PricewaterhouseCoopers Inc. This review has been conducted in accordance with International Standards on Review
Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, and
their unmodified review opinion is available for inspection at the companys registered office.
2 SEGMENT INFORMATION
In terms of IFRS 8 Operating Segments the chief operating decision-maker has been identified as the groups board of
directors. The board reviews the groups internal reporting in order to assess performance and allocate resources.
Management has determined the operating segments based on the reports reviewed by the groups board of directors at
the board meetings which are used to make strategic decisions.
The board considers the business from both a geographical basis and business type, being hotels and gaming. All gaming
segments and the South African hotels division conduct business in South Africa, with the offshore hotels division
having operations in other African countries, the Middle East and the Seychelles. Other gaming operations consist
mainly of the Sandton Convention Centre, the StayEasy Century City hotel and head office costs. The corporate segment
includes the treasury and management function of the group, together with the groups captive insurance operations.
Although the offshore hotels segment does not meet the quantitative thresholds of IFRS 8, management has concluded
that the segment should be reported as it has a different risk and reward profile. It is closely monitored as it is
expected to materially contribute to group revenue in the future.
The groups board of directors assesses the performance of the operating segments based on Ebitdar. The measure excludes
the effects of long-term incentives and the effects of non-recurring expenditure. The measure also excludes all headline
adjustments, impairments and fair value adjustments on non-current assets and liabilities. Interest income and finance
costs are not included in the result for each operating segment as this is driven by the group treasury function which
manages the cash and debt position of the group.
All revenue and income from gaming and hotel operations shown in the Segmental Analysis is derived from external
customers. No one customer contributes more than 10% to the groups total revenue.
3 CAPITAL COMMITMENTS
The board has committed a total of R2.5 billion for maintenance and expansion capital items at its gaming and hotel
properties of which R1.7 billion is anticipated to be spent during the next financial year. R339 million of the committed
capital expenditure has been contracted for.
CONDENSED CONSOLIDATED INCOME STATEMENT
for the year ended 31 March
Reviewed Audited
Change 2013 2012
% Rm Rm
Net gaming win 7 6 525 6 111
Rooms revenue 19 1 914 1 615
Food and beverage revenue 16 869 752
Other revenue 602 553
Income 10 9 910 9 031
Gaming levies and Value Added Tax (1 341) (1 248)
Property and equipment rentals (258) (239)
Amortisation and depreciation (608) (623)
Employee costs (2 510) (2 116)
Other operating expenses (2 359) (1 787)
Operating profit (6) 2 834 3 018
Interest income 45 49
Finance costs (430) (469)
Share of profit of associates and joint ventures 6 10
Profit before income tax 2 455 2 608
Income tax expense (701) (761)
Profit for the year 1 754 1 847
Profit attributable to:
Equity holders of the company 1 629 1 717
Non-controlling interests 125 130
1 754 1 847
Number of shares in issue (million) 1 098 1 097
Weighted number of shares in issue (million) 1 097 1 097
Basic and diluted earnings per share (cents) (5) 148.5 156.5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March
Reviewed Audited
2013 2012
Rm Rm
Profit for the year 1 754 1 847
Other comprehensive income for the year, net of tax 47 23
Cash flow hedges (33) (25)
Close out of cash flow hedge - (2)
Currency translation adjustments 71 43
Income tax relating to components of other comprehensive income 9 7
Total comprehensive income for the year 1 801 1 870
Total comprehensive income attributable to:
Equity holders of the company 1 676 1 739
Non-controlling interests 125 131
1 801 1 870
SUPPLEMENTARY INFORMATION
for the year ended 31 March
Reviewed Audited
Change 2013 2012
% Rm Rm
Reconciliation of earnings attributable to equity holders of the company
to headline earnings and adjusted earnings(1)
Earnings attributable to equity holders of the company 1 629 1 717
Gain on disposal of property, plant and equipment (1) (2)
Impairment of property, plant and equipment 9 -
Impairment of goodwill 16 -
Impairment of investment in joint venture - 2
Fair value gain on revaluation of previously held interest in associate - (179)
Headline earnings 7 1 653 1 538
Write-back of contingent purchase consideration - (248)
Other exceptional items (4) 43
Adjusted headline earnings 24 1 649 1 333
Number of shares in issue (million) 1 098 1 097
Weighted number of shares in issue (million) 1 097 1 097
Basic and diluted HEPS (cents) 7 150.7 140.2
Basic and diluted adjusted HEPS (cents) 24 150.3 121.5
(1) Net of tax and non-controlling interests
Reconciliation of operating profit to Ebitdar
Group Ebitdar pre-exceptional items is made up as follows:
Operating profit 2 834 3 018
Add:
Property rentals 193 190
Amortisation and depreciation 608 623
Long-term incentive expense 234 55
3 869 3 886
Add/(less): Exceptional losses/(profits) 19 (385)
Gain on disposal of property, plant and equipment (1) (3)
Impairment of property, plant and equipment 9 -
Impairment of goodwill 16 -
Fair value gain on revaluation of previously held interest in associate - (179)
Write-back of contingent purchase consideration - (248)
Other adjustments (5) 45
Ebitdar 11 3 888 3 501
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March
Reviewed Audited
2013 2012
Rm Rm
Cash flows from operating activities
Profit before interest and income tax 2 834 3 018
Non-cash movements 1 131 485
Increase in working capital (216) (107)
Cash generated from operations 3 749 3 396
Interest received 46 46
Finance costs paid (445) (501)
3 350 2 941
Income tax paid (842) (785)
Dividends paid to shareholders (702) (768)
Dividends paid to non-controlling interests (42) (48)
Dividends received 3 5
Net cash generated from operations 1 767 1 345
Cash flows from investment activities
Purchase of property, plant and equipment (903) (692)
Advance payment for business acquisition (65) -
Proceeds from disposals of property, plant and equipment 6 10
Purchase of intangible assets (47) (44)
Purchase of investment property (7) -
Advance payment related to casino licences (116) -
Acquisition of subsidiaries, net of cash acquired - (278)
Acquisition of business (20) -
Other loans and investments repaid 1 5
Net cash utilised for investment activities (1 151) (999)
Cash flows from financing activities
Borrowings raised 782 1 152
Borrowings repaid (2 079) (594)
Acquisition of non-controlling interests - (509)
Settlement of contingent consideration for Millennium acquisition (58) (24)
Loan repayments (to)/by non-controlling interests (3) 98
Decrease/(increase) in amounts due by share scheme participants 3 (1)
Net cash (utilised in)/generated from financing activities (1 355) 122
Net (decrease)/increase in cash and cash equivalents (739) 468
Cash and cash equivalents at beginning of the year 1 443 956
Foreign currency translation 46 19
Cash and cash equivalents at end of the year 750 1 443
CONDENSED CONSOLIDATED BALANCE SHEET
as at 31 March
Reviewed Audited
2013 2012
Rm Rm
Assets
Non-current assets
Property, plant and equipment 9 004 8 568
Goodwill and other intangible assets 6 330 6 342
Investments in associates and joint ventures 171 170
Non-current receivables 49 54
Deferred income tax assets 179 114
Amounts due by share scheme participants 30 19
Investment property 7 -
15 770 15 267
Current assets
Inventories 204 176
Trade and other receivables 633 407
Current income tax assets 73 82
Cash and cash equivalents 750 1 443
1 660 2 108
Total assets 17 430 17 375
Equity
Capital and reserves attributable to equity holders of the company
Ordinary share capital and premium 4 768 4 754
Share-based payment reserve 3 3
Surplus arising on change in control in joint venture 130 130
Other reserves (583) (230)
Retained earnings 3 990 3 063
Total shareholders equity 8 308 7 720
Non-controlling interests 807 727
Total equity 9 115 8 447
Liabilities
Non-current liabilities
Interest-bearing borrowings 3 386 4 245
Derivative financial instruments 45 9
Deferred income tax liabilities 1 446 1 517
Provisions and other liabilities 513 449
5 390 6 220
Current liabilities
Interest-bearing borrowings 944 1 382
Derivative financial instruments 37 38
Trade and other payables 984 958
Current income tax liabilities 39 61
Provisions and other liabilities 921 269
2 925 2 708
Total liabilities 8 315 8 928
Total equity and liabilities 17 430 17 375
CONDENSED Consolidated STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the company
Ordinary Surplus arising
share Share-based on change in
capital and payment control in Other Retained
premium reserve joint venture reserves earnings Total
Rm Rm Rm Rm Rm Rm
Balance at 1 April 2011 (audited) 4 751 2 130 13 2 115 7 011
Total comprehensive income for the year - - - 22 1 717 1 739
Profit for the year - - - - 1 717 1 717
Other comprehensive income - - - 22 - 22
Shares issued to share trust 35 - - - - 35
Shares issued by subsidiary taken up by non-controlling interests - - - - - -
Non-controlling interests arising on business combinations - - - - - -
Recognition of share-based payments - 1 - - - 1
Repayment of non-controlling interests equity loans - - - - - -
Treasury shares held by share trust (32) - - - - (32)
Acquisition of non-controlling interests - - - (265) - (265)
Ordinary dividends - - - - (769) (769)
Balance at 31 March 2012 (audited) 4 754 3 130 (230) 3 063 7 720
Total comprehensive income for the year - - - 47 1 629 1 676
Profit for the year - - - - 1 629 1 629
Other comprehensive income - - - 47 - 47
Shares issued to share scheme participants 15 - - - - 15
Share options lapsed (1) - - - - (1)
Obligation for subsidiary share buyback scheme - - - (400) - (400)
Repayment of non-controlling interests equity loans - - - - - -
Ordinary dividends - - - - (702) (702)
Balance at 31 March 2013 (reviewed) 4 768 3 130 (583) 3 990 8 308
CONDENSED Consolidated STATEMENT OF CHANGES IN EQUITY (continued)
Non-controlling Total
interests equity
Rm Rm
Balance at 1 April 2011 (audited) 862 7 873
Total comprehensive income for the year 131 1 870
Profit for the year 130 1 847
Other comprehensive income 1 23
Shares issued to share trust - 35
Shares issued by subsidiary taken up by non-controlling interests 20 20
Non-controlling interests arising on business combinations 7 7
Recognition of share-based payments - 1
Repayment of non-controlling interests equity loans (1) (1)
Treasury shares held by share trust - (32)
Acquisition of non-controlling interests (244) (509)
Ordinary dividends (48) (817)
Balance at 31 March 2012 (audited) 727 8 447
Total comprehensive income for the year 125 1 801
Profit for the year 125 1 754
Other comprehensive income - 47
Shares issued to share scheme participants - 15
Share options lapsed - (1)
Obligation for subsidiary share buyback scheme - (400)
Repayment of non-controlling interests equity loans (3) (3)
Ordinary dividends (42) (744)
Balance at 31 March 2013 (reviewed) 807 9 115
SEGMENTAL ANALYSIS
for the year ended 31 March
Amortisation
Income Ebitdar(1) Ebitdar margin and depreciation
2013 2012 2013 2012 2013 2012 2013 2012
Rm Rm Rm Rm % % Rm Rm
Montecasino 2 266 2 107 1 026 901 45.3 42.8 83 86
Suncoast 1 440 1 313 692 634 48.1 48.3 102 98
Gold Reef City 1 218 1 162 479 462 39.3 39.8 74 85
Silverstar 602 557 237 207 39.4 37.2 49 53
The Ridge 387 357 187 171 48.3 47.9 26 26
Emnotweni 319 292 147 130 46.1 44.5 14 17
Golden Horse 303 287 150 144 49.5 50.2 30 32
Hemingways 303 285 125 122 41.3 42.8 22 19
Garden Route 173 155 76 70 43.9 45.2 13 13
Goldfields 136 131 60 59 44.1 45.0 9 11
Blackrock 135 123 53 48 39.3 39.0 7 12
Mykonos 134 120 59 52 44.0 43.3 7 8
The Caledon 128 123 32 36 25.0 29.3 6 8
Other gaming operations 104 101 (185) (150) 11 11
Total gaming operations 7 648 7 113 3 138 2 886 41.0 40.6 453 479
South African hotels division(2) 1 937 1 625 615 512 31.8 31.5 139 129
Offshore hotels division 361 324 130 101 36.0 31.2 14 12
Pre-foreign exchange gains 93 88 25.8 27.2
Foreign exchange gains 37 13
Corporate (36) (31) 5 2 2 3
Group 9 910 9 031 3 888 3 501 39.2 38.8 608 623
(1) All casino units are reported pre-internal gaming management fees.
(2) Includes R39 million (2012: R31 million) intergroup management fees.
DIRECTORS: JA Copelyn (Chairman)* JA Mabuza (Deputy Chairman)* MN von Aulock (Chief Executive Officer)
RB Huddy (Chief Financial Officer) MJA Golding* EAG Mackay* VE Mphande* JG Ngcobo** Y Shaik**
RG Tomlinson (Lead Independent)** JS Wilson* - MI Wyman* - (*Non-executive Director **Independent Director
-British). Mr JM Kahn resigned as non-executive director with effect from 31 March 2013.
Mr JS Wilson was appointed as non-executive director with effect from 2 April 2013.
COMPANY SECRETARY: WJ van Wyngaardt
REGISTERED OFFICE: Palazzo Towers East, Montecasino Boulevard, Fourways, 2055 (Priv Bag X200, Bryanston, 2021)
TRANSFER SECRETARIES: Link Market Services South Africa Proprietary Limited, 13th Floor, Rennie House,
19 Ameshoff Street, Braamfontein, 2001 (PO Box 4844, Johannesburg, 2000)
SPONSOR: Deutsche Securities (SA) Proprietary Limited, 3 Exchange
Square, 87 Maude Street, Sandton, 2196 (Private Bag X9933, Sandton, 2146)
www.tsogosun.com
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