TSOGO SUN HOLDINGS LIMITED - Reviewed condensed consolidated financial results for the year ended 31 March 2018

Release Date: 23/05/2018 07:05
Code(s): TSH
 
Wrap Text
Reviewed condensed consolidated financial results for the year ended 31 March 2018

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 2018

- Income R14.0 billion up 6%
- Ebitdar R5.3 billion up 4%
- Adjusted HEPS 197.8 cents down 5% 
- Final dividend per share 70 cents unchanged


COMMENTARY

REVIEW OF OPERATIONS
Trading for the year ended 31 March 2018 was impacted by the continued pressure on the consumer due to the
macro-economic environment, extremely weak sentiment and political uncertainty. The trading results were assisted 
by the acquisition of Niveus Invest 19 Limited ("Gameco") comprising the Galaxy Bingo and Vukani Slots businesses 
on 20 November 2017 and the acquisition of two hotel businesses from the Liberty Group ("Liberty") and Hospitality 
Property Fund Limited ("HPF") in the prior year and negatively impacted in casino gaming by the opening of the Time 
Square casino in Menlyn. The potential impact of the positive political developments have resulted in improved 
sentiment which has not yet translated into a significant improvement in trading, although trading in the second 
half was better than in the first half of the year. In the low-revenue growth environment cost control remained a 
significant focus during the year.

In terms of the group's continued growth strategy R3.3 billion was spent during the year, including:
- the acquisition of Hosken Consolidated Investment Limited ("HCI") and all other shareholders' interests in Gameco
  for a combination of 98.5 million Tsogo Sun shares and R1.7 billion in cash;
- the continued construction on the R1.6 billion expansion and refurbishment of the Suncoast Casino and Entertainment
  World. The project includes past spend with the Salon Priv� scheduled to open in July 2018 and the remainder of the
  project scheduled to open in December 2018. R291 million was spent during the year;
- the acquisition by HPF of various sections and exclusive use areas of the Sandton Eye sectional title scheme from
  Savana Property Proprietary Limited and an existing real right of extension in the scheme from Sandton Isle 
  Investments Proprietary Limited for R302 million;
- the development of a US$16 million 125 room StayEasy in Maputo, Mozambique, which opened during April 2018. 
  R145 million was spent during the year;
- the opening of a new 504 room SunSquare and StayEasy branded leased hotel in the Cape Town City Bowl during 
  August 2017. The spend on furniture and fittings was R34 million during the year; and
- the group invested R670 million on replacement capex group-wide, including gaming system replacements and casino
  floor and major hotel refurbishments, ensuring our assets remain best in class.

Total income for the year of R14.0 billion ended 6% above the prior year with a 6% growth in net gaming win and assisted 
by a 9% growth in food and beverage revenue and strong growth in property rental income. The net gaming win growth is
assisted by the acquisition of Gameco during the year. Earnings before interest, income tax, depreciation, amortisation, 
property rentals, long-term incentives and exceptional items ("Ebitdar") at R5.3 billion for the year was 4% up on the
prior year. Excluding the impact of the Gameco acquisition total income grew by 1% and Ebitdar was flat on the prior
year. The overall group Ebitdar margin of 37.7% is 0.5 percentage points ("pp") down on the prior year. The underlying
operations of the group remain highly geared towards the South African consumer (in gaming) and the corporate market (in
hotels). The high level of operational gearing still presents significant growth potential for the group should these
sectors of the South African economy improve.

Net casino gaming win for the year reduced by 2% on the prior year with slots win down 1% and tables win down 4% and
was negatively impacted by the opening of Time Square and a strong performance in the first quarter of the prior year in
Gauteng, mainly at Montecasino. 

Gauteng recorded growth in provincial gaming win of 7.1% for the year. Gaming win growth of 2.9% was achieved at Gold
Reef City with a reduction at Montecasino of 4.5% and at Silverstar of 8.3%. Provincial gaming win was positively
impacted during the current year by the opening of the Time Square casino in Menlyn on 1 April 2017, although the impact 
on the group's casinos, mainly at Montecasino and Silverstar, is significantly below expectation. Montecasino was, in
addition, also impacted by very strong tables win in the first quarter of the prior year.

KwaZulu-Natal provincial gaming win grew by 1.9% for the year. Gaming win reduced by 2.3% at Suncoast Casino and 
Entertainment World and 8.8% at Blackrock Casino in Newcastle, impacted by disruptions to the local manufacturing 
industry in that area, but grew by 1.1% at Golden Horse Casino in Pietermaritzburg. Provincial gaming win statistics 
are not available from the gaming board for March 2018 and have been estimated.

Mpumalanga provincial gaming win was flat on the prior year. Gaming win growth of 0.2% was achieved at Emnotweni Casino 
in Nelspruit with a reduction at The Ridge Casino in Emalahleni of 0.9% impacted by economic disruptions to the local
manufacturing industry in that area. 

Eastern Cape provincial gaming win reduced by 0.4% on the prior year. Hemingways gaming win increased by 0.6% on the
prior year.

The Western Cape reported growth in provincial gaming win of 1.1% for the year. The Garden Route Casino in Mossel Bay
and Mykonos Casino in Langebaan reported growth of 4.1% and 10.2% respectively with the Caledon Casino, Hotel and Spa
reducing by 2.7% on the prior year.

Goldfields Casino in Welkom in the Free State experienced difficult trading conditions but grew gaming win by 2.1% on
the prior year.

Other Gaming division operations consisting of the Sandton Convention Centre, head office costs and dividend income
reflected a net cost of R141 million, a decrease of R13 million on the prior year mainly due to four quarterly dividends
received from SunWest in the current year where only three quarterly dividends were received in the prior year.

Overall income for the casino gaming division decreased 1% on the prior year to R9.0 billion. Ebitdar decreased 4% on
the prior year to R3.4 billion at a margin of 37.7%, 1.1pp below the prior year with particularly good control on
overheads mitigating the reduction in net gaming win.

Overall income for the Galaxy and Vukani ("Gameco") gaming businesses from 20 November 2017 was R263 million and 
R362 million respectively. Ebitdar was R69 million and R169 million respectively at a margin of 26.2% and 46.7% 
respectively.

Overall hotel industry occupancies in South Africa have reduced to 64.2% (2017: 65.2%) for the year. Occupancies in
Cape Town have weakened, particularly during the last quarter as a result of the impact of the water crisis. Trading for
the group's South African hotels for the year recorded system-wide revenue per available room ("RevPar") flat on the
prior year due to flat average room rates at R1 066, with occupancies slightly up on the prior year at 64.7% (2017: 64.3%).

Overall revenue for the South African hotels division increased 8% on the prior year to R3.8 billion assisted by the
inclusion of the Garden Court Umhlanga and the StayEasy Pietermaritzburg from October 2016, the consolidation of HPF from
September 2016 and the opening of the SunSquare and StayEasy City Bowl hotels on 1 September 2017. Ebitdar increased by
8% on the prior year to R1.5 billion at a margin of 38.7% (2017: 38.7%).

The offshore division of hotels achieved total revenue of R565 million which was 11% down on the prior year impacted
by tough local economic environments due mainly to the reduction in commodity prices impacting the local economies
negatively. This was further adversely impacted by the strengthening of the Rand against the US Dollar. Ebitdar 
(pre-foreign exchange gains/losses) decreased by 18% to R119 million. Foreign exchange gains of R1 million 
(2017: R38 million loss) were incurred on the translation of offshore monetary items, principally between local 
country currencies and the US Dollar.

Combined South African and offshore hotel trading statistics, reflecting the Tsogo Sun group-owned hotels and
excluding hotels managed on behalf of third parties and those in HPF managed by third parties, are as follows:

 For the year ended 31 March          2018       2017    
 Occupancy (%)                        63.5       63.3    
 Average room rate (R)               1 045      1 063    
 RevPar (R)                            664        672    
 Rooms available ('000)              4 763      4 578    
 Rooms sold ('000)                   3 024      2 895    
 Rooms revenue (Rm)                  3 160      3 078    

The decrease in average room rate is impacted by US Dollar average rate weakness and effect of the Rand strength on
the offshore portfolio.

Operating expenses including gaming levies and VAT and employee costs, but excluding exceptional items and long-term
incentives, increased by 6% on the prior year mainly due to non-organic growth in the business as a result of
acquisitions and expansions, offset by savings initiatives. Excluding the non-organic growth and foreign exchange 
gains/losses, operating expenses increased by only 1% due to tight overhead control. Non-organic represents all new 
business operations commencing during the current and prior year.

Property rentals at R282 million are 16% up on the prior year mainly due to the opening of the SunSquare and StayEasy
Cape Town City Bowl hotels on 1 September 2017, offset by the renegotiation of the Southern Sun Nairobi lease.

Amortisation and depreciation at R912 million is 8% up on the prior year due mainly to the capital spend during the
current and prior years.

The long-term incentive credit on the cash-settled incentive scheme of R24 million values the liability (including
dividend adjustments) by reference to the company's share price which is adjusted for management's best estimate of the
appreciation units expected to vest and future performance of the group. A share price of R25.50 was used to value the
liability at 31 March 2018.

Exceptional losses for the year of R439 million relate to fair value losses on the revaluation of investment
properties of R191 million, mainly related to the non-Tsogo leased hotels in HPF, goodwill and intangible asset impairments 
of R112 million, preopening costs of R19 million, transaction costs of R33 million, restructure costs of R38 million and
plant and equipment disposals and impairments of R70 million, mainly related to the Suncoast expansion, interest rate swap
fair value adjustments of R2 million and fair value losses on non-current assets held for sale of R1 million, offset by
previously impaired loans recovered net of impairments of R27 million. Exceptional gains for the prior year of R787 million 
relate to fair value gains on the revaluation of investment properties of R757 million related to the non-Tsogo leased hotels 
in HPF, the release of a fair value reserve for the available-for-sale HPF investment of R46 million, profit on sale of 
investment properties of R36 million related to the Inn on the Square disposed of by HPF and gains on bargain purchases of 
R82 million, offset by property, plant and equipment disposals and impairments and loan impairments of R94 million, including 
an impairment of the Southern Sun Ikoyi of R75 million, interest rate swap fair value adjustments of R6 million and transaction 
and restructure costs of R34 million.

Net finance costs of R1.2 billion are 13% above the prior year due to the increase in debt to fund the growth
strategy.

The share of profit of associates and joint ventures of R63 million improved by R25 million on the prior year mainly
due to earnings, including the group's share of exceptional gains of R15 million, from International Hotel Properties
Limited and RBH Hotel Group Limited, the group's European hotel investments.

The effective tax rate, which excludes the group's share of profit of associates and joint ventures, for the year of
16.4% is impacted by the release of deferred tax liabilities of R307 million on the disposal of assets to HPF, tax exempt
dividend income, pre-tax profits attributable to the HPF non-controlling interests due to its real estate investment
trust ("REIT") tax status, offset by the non-deductible fair value losses on investment property referred to above and
non-deductible expenditure such as casino building depreciation. The effective tax rate for the prior year of 18.1% is
impacted by the non-taxable fair value gains on investment property and the gains on bargain purchases referred to above,
the release of deferred tax liabilities of R56 million on the disposal of assets to HPF, tax exempt dividend income,
pre-tax profits attributable to the HPF non-controlling interests due to its REIT tax status, deductible foreign exchange
losses on local country currency movements in the African operations that reverse on consolidation and offshore tax rate
differentials, offset by non-deductible expenditure such as casino building depreciation and the effective interest on the
SunWest and Worcester acquisition.

Profit attributable to non-controlling interests of R187 million is R355 million below the prior year mainly due to
the HPF non-controlling interests' share of the fair value losses on investment properties in the current year and gains
in the prior year, offset by increased local currency profits at Southern Sun Ikoyi and Southern Sun Maputo due to
foreign exchange losses in the prior year not repeated in the current year.

Group adjusted headline earnings for the year at R2.0 billion ended 1% below the prior year. The adjustments include
the reversal of the post-tax impacts of the exceptional gains or losses noted above, in addition to the release of the
deferred tax liabilities of R307 million noted in taxation above and the exceptional gains in the share of profit of
associates and joint ventures, net of tax and non-controlling interests. The adjustments in the prior year include the
reversal of the post-tax impacts of the exceptional gains or losses noted above, in addition to the reversal of the
remeasurement of the Cullinan put option included in net finance costs, the release of deferred tax liabilities of 
R56 million noted in taxation above and the exceptional gains in the share of profit of associates and joint ventures, 
net of tax and non-controlling interests.

The number of shares in issue increased during the year on the acquisition of Gameco with the weighted average increasing 
by 4% and the resultant adjusted headline earnings per share is 5% down on the prior year at 197.8 cents per share.

Cash generated from operations for the year reduced by 8% on the prior year to R4.4 billion. Net finance costs increased 
by 7% due to the increase in net debt, taxation paid increased by 10% mainly due to refunds received from SARS in the
prior year, dividends paid to shareholders and non-controlling interests increased by 8% and the prior year included a
HPF pre-acquisition dividend paid of R133 million. Cash flows utilised for investment activities of R2.1 billion (net of
the R1.0 billion rights issue in HPF) consisted mainly of replacement capital expenditure and the acquisitions and
investments described above.

Interest-bearing debt net of cash at 31 March 2018 totalled R12.5 billion, which is R0.4 billion above the 31 March 2017 
balance of R12.1 billion, with R1.2 billion paid in dividends to group shareholders in addition to the investment
activities during the year. The increase is mainly due to the additional funding for the group's expansion programme.

PROSPECTS
Given the weak state of the South African economy and many of the commodity focused countries in which the group
operates, trading is expected to remain under pressure. Growth will depend on how these economies perform going forward,
including the impact of changes in commodity prices and the level of policy certainty that the government is able to
achieve. Nevertheless, the group remains highly cash generative and is confident in achieving attractive returns from the
growth strategy once the macro-economic environment improves.

The group continues to implement a variety of projects and acquisitions including:
- the internal restructuring and negotiations with HPF for the acquisition by HPF of certain of the casino precinct
  properties currently owned by the group in consideration for the issue by HPF of new shares in HPF, and the unbundling 
  of the group's entire interest in HPF as announced on SENS on 2 March 2018 and updated on SENS on 18 April 2018;
- 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 should the provincial authorities allow such a process. The Western Cape Provincial
  Treasury published a draft Bill and Regulations intended to permit the relocation of outlying casinos to within the
  Metropole;
- the acquisition of additional hotel properties by International Hotel Properties Limited, which currently owns nine
  hotels in the United Kingdom, is anticipated in the future and the group may apply additional capital in this regard. 

DIVIDEND
Subsequent to year end, the board of directors has declared a final gross cash dividend from income reserves in respect 
of the year ended 31 March 2018 of 70.0 (seventy) 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 Friday, 15 June 2018.
The number of ordinary shares in issue at the date of this declaration is 1 059 189 290 (excluding treasury shares of 
88 468 494). The dividend will be subject to a local dividend tax rate of 20%, which will result in a net dividend of 
56.0 cents per share to those shareholders who are not exempt from paying dividend tax. The company's 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 in 2018:

Last date to trade cum dividend          Tuesday, 12 June    
Shares trade ex dividend               Wednesday, 13 June    
Record date                               Friday, 15 June    
Payment date                              Monday, 18 June    

Share certificates may not be dematerialised or rematerialised during the period Wednesday, 13 June 2018 and Friday,
15 June 2018, both days inclusive. On Monday, 18 June 2018, 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 2018 will be posted on that date. Shareholders who have dematerialised their
share certificates will have their accounts at their CSDP or broker credited on Monday, 18 June 2018.

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 group's website at www.tsogosun.com.

FORWARD-LOOKING INFORMATION DISCLAIMER
Any forward-looking information included in Prospects above has not been reviewed or reported on by the company's
external auditors.

J Booysen                           RB Huddy
Chief Executive Officer             Chief Financial Officer

23 May 2018


INDEPENDENT AUDITOR'S REVIEW REPORT ON CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF TSOGO SUN HOLDINGS LIMITED
We have reviewed the condensed consolidated financial statements of Tsogo Sun Holdings Limited, which comprise 
the condensed consolidated balance sheet as at 31 March 2018 and the related condensed consolidated income statement, 
condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and 
condensed consolidated cash flow statement for the year then ended, and selected explanatory notes. 

DIRECTORS' RESPONSIBILITY FOR THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The directors are responsible for the preparation and presentation of these condensed consolidated financial
statements in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports, 
as set out in note 1 to the financial statements, and the requirements of the Companies Act of South Africa, and 
for such internal control as the directors determine is necessary to enable the preparation of financial statements 
that are free from material misstatement, whether due to fraud or error. 

AUDITOR'S RESPONSIBILITY
Our responsibility is to express a conclusion on these financial statements. We conducted our review in accordance
with International Standard on Review Engagements ("ISRE") 2410, which applies to a review of historical financial
information performed by the independent auditor of the entity. ISRE 2410 requires us to conclude whether anything 
has come to our attention that causes us to believe that the financial statements are not prepared in all material 
respects in accordance with the applicable financial reporting framework. This standard also requires us to comply 
with relevant ethical requirements.

A review of financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures, 
primarily consisting of making enquiries of management and others within the entity, as appropriate, and applying
analytical procedures, and evaluate the evidence obtained. The procedures performed in a review are substantially less 
than those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do 
not express an audit opinion on these financial statements.

CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated
financial statements of Tsogo Sun Holdings Limited for the year ended 31 March 2018 are not prepared, in all material
respects, in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports, as set 
out in note 1 to the financial statements, and the requirements of the Companies Act of South Africa. 

PricewaterhouseCoopers Inc. 
Director: BS Humphreys
Registered Auditor
Johannesburg
23 May 2018

NOTES TO THE REVIEWED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018

1  BASIS OF PREPARATION
   The condensed consolidated financial statements for the year ended 31 March 2018 have been prepared in accordance 
   with the requirements of the JSE Limited Listings Requirements ("Listings Requirements") for provisional reports 
   and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional reports 
   to be prepared in accordance with the framework concepts and the measurement and recognition requirements of 
   International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board 
   ("IASB"), the preparation and disclosure requirements of 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 ("FRSC"). Chief Financial Officer, RB Huddy CA(SA), supervised the 
   preparation of the condensed consolidated financial statements. The accounting policies applied in the preparation 
   of the condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in 
   the previous consolidated annual financial statements as at 31 March 2017 other than as described in note 2. The 
   condensed consolidated financial statements should be read in conjunction with the annual financial statements 
   for the year ended 31 March 2017, which have been prepared in accordance with IFRS. These condensed consolidated 
   financial statements for the year ended 31 March 2018 have been reviewed by PricewaterhouseCoopers Inc., and their 
   unmodified review conclusion is included above.
   
2  CHANGE IN ACCOUNTING POLICIES AND INTERPRETATIONS
   The group has adopted all the new, revised or amended accounting standards as issued by the IASB which were effective 
   for the group from 1 April 2017, none of which had a material impact on the group.
   
   IFRS 9 Financial Instruments
   
   IFRS 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and 
   financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. 
   The group has reviewed its financial assets and financial liabilities and is expecting the following impact from 
   the adoption of the new standard on 1 April 2018:
   
   Classification and measurement
   The majority of financial assets held by the group include:
   - debt instruments - trade and other receivables - currently classified as loans and receivables and are measured 
     at amortised cost. Trade and other receivables continue to qualify for measurement at amortised cost under IFRS 
     9 because they are held to collect contractual cash flows comprising principal and interest, therefore there is 
     no change to the accounting for these assets; and
   - an investment in unlisted equity instruments - these are currently classified as available-for-sale financial 
     assets for which the fair value through other comprehensive income ("FVOCI") and fair value through profit or loss 
     ("FVPL") election are available. The group has elected to measure equity instruments at FVOCI.
   
   Accordingly, the group does not expect the new guidance to affect the classification and measurement of these 
   financial assets. There will be no impact on the group's accounting for financial liabilities, as the new requirements 
   only affect the accounting for financial liabilities that are designated at FVPL and the group does not have any such 
   liabilities. The derecognition rules have been transferred from IAS 39 Financial Instruments: Recognition and Measurement 
   and have not been changed.
   
   Hedge accounting
   The new hedge accounting rules will align the accounting for hedging instruments more closely with the group's risk 
   management practices. The group has confirmed that its current hedge relationships will qualify as continuing hedges 
   upon the adoption of IFRS 9.
   
   Impairment
   Trade and other receivables is the most significant financial asset in the group that will be impacted. The provision 
   matrix is used to calculate expected credit losses. The impact of forward-looking information is immaterial on trade 
   receivables and as such no significant impact was noted on adoption.
   
   Disclosure
   The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to 
   change the nature and extent of the group's disclosures about its financial instruments particularly in the year of 
   the adoption of the new standard.
   
   Date of adoption
   The impact of applying IFRS 9 will be adjusted against opening retained earnings on 1 April 2018 and comparatives 
   will not be restated.
   
   IFRS 15 Revenue from Contracts with Customers
   As the group recognises significantly all of its revenue at a point in time, there will be no significant impact on the 
   group's revenue recognition by the adoption of the new standard, IFRS 15 Revenue from Contracts with Customers. The impact 
   on the group's customer loyalty programmes will also not be significant. IFRS 15 must be applied for financial years 
   commencing on or after 1 January 2018. The group will apply the new standard from 1 April 2018.
   
   IFRS 16 Leases
   The group is in the process of assessing the possible impact of the application of IFRS 16 Leases which has been issued 
   but is not effective at year end.
   
   The Sandton Convention Centre and some hotel property leases (accounted for as operating leases), where the group is the 
   lessee, will be mostly impacted. IFRS 16 must be applied for financial years commencing on or after 1 January 2019. The 
   group will apply the new standard from 1 April 2019.
   
3  FAIR VALUE ESTIMATION
   As shown below, the group fair values its investment properties, interest rate swaps and its available-for-sale 
   investments. There were no transfers into or out of level 3 financial instruments.
   
   3.1 Interest rate swaps
       The fair value of the group's derivatives used for hedge accounting is a net liability of R135 million (31 March 2017: 
       R51 million) and is calculated as the present value of the estimated future cash flows based on observable yield curves, 
       which is consistent with the prior year.

       The group has interest rate swaps that are effective with a fair value net liability of R133 million (2017: R50 million), 
       as well as interest rate swaps from HPF that are not effective with a net liability of R2 million (2017: R1 million) 
       being level 2 fair value measurements.

   3.2 Investment properties
       The movement of investment properties for the year is as follows:
                                                                     2018         2017    
                                                                 Reviewed      Audited    
                                                                       Rm           Rm    
                                                                                          
       Opening net carrying amount                                  4 969          108    
       Acquisition and development of investment properties           471           92    
       Disposals                                                        -         (106)   
       Acquisition of subsidiary (note 5)                               6        4 185    
       Transfers                                                        -          (67)   
       Fair value adjustments recognised in profit or loss           (191)         757    
       Closing net carrying amount                                  5 255        4 969 
   
       The group's investment properties have been categorised as level 3 values based on the inputs to the valuation 
       technique used. The group has elected to measure investment properties at fair value. The fair value is determined 
       by using the discounted cash flow method by discounting the rental income (based on expected net cash flows of the 
       underlying hotels) after considering the capital expenditure requirements. The expected cash flows are discounted 
       using an appropriate discount rate. The core discount rate is calculated using the R186 (long bond) at the time of 
       valuation, to which is added premiums for market risk and equity and debt costs. The discount rate takes into account 
       a risk premium associated with the local economy as well as that specific to the local property market and the hotel 
       industry. At 31 March 2018, the group's investment properties were independently valued by professionally qualified 
       valuers having recent experience in the locations and categories of the group's investment property being valued.
       
       As at 31 March 2018 the significant unobservable inputs were as follows:
       - A weighted average rental growth rate of 5.0% (2017: 5.5%);
       - A terminal capitalisation rate of 7.23% - 8.07% (2017: 7.26%); and
       - A risk-adjusted discount rate of 12.23% - 13.07% (2017: 12.76%).
   
       The table below indicates the sensitivities of the aggregate investment property portfolio by increasing or 
       decreasing value inputs as follows:
                                                                 2018                      2017
                                                          Increase   Decrease       Increase   Decrease    
                                                                Rm         Rm             Rm         Rm    
                                                                                                           
       5% change in the net cash flows                         282       (283)           241       (241)   
       25bps change in the terminal capitalisation rate       (121)       128           (116)       118    
       50bps change in the discount rate                      (373)       326           (203)       189    
       
   3.3 Available-for-sale investment
       During the prior year, aligned with the group's desire to increase its exposure in the Western Cape province, the 
       group entered into a transaction with Sun International Limited ("SI") and Grand Parade Investments Limited ("GPI") 
       for the acquisition of a 20% equity interest in each of SunWest and Worcester. The group has pre-emptive rights but 
       no representation on the board of directors of either company and has no operational responsibilities. The group also 
       has no access to any information regarding the companies except for that to which it has statutory rights as a 
       shareholder. This investment is classified as a level 3 fair value measurement and has been accounted for as an 
       available-for-sale financial asset.
   
       At the end of each reporting period the investment is remeasured and the increase or decrease recognised in other 
       comprehensive income. The asset has been remeasured to R1 275 million at 31 March 2018. A discounted cash flow 
       valuation was used to estimate the fair value. The valuation model considers the present value of net cash flows to 
       be generated from SunWest and Worcester, together with its operating capital expenditure taking into account expected 
       growth in gaming win and other revenue generated from non-gaming related activities. The expected net cash flows are 
       discounted using a risk-adjusted discount rate. Among other factors, the discount rate estimation considers risks 
       associated with the gaming and hospitality industry in which SunWest and Worcester operates.
   
       As at 31 March 2018 the significant unobservable inputs were as follows:
       - Expected gaming win growth between 4.3% and 6.3% (2017: 4.3% and 7.0%);
       - Operating expenditure cost growth between 5.1% and 5.6% (2017: 5.5% and 6.5%);
       - Risk-adjusted discount rate of 11.3% (2017: 12.3%); and
       - Long-term growth rate of 5.6% (2017: 5.6%).
   
       The table below indicates the sensitivities for the valuation by increasing or decreasing the above inputs by 1%:
                                                   2018                         2017
                                           Increase     Decrease       Increase     Decrease     
                                                 Rm           Rm             Rm           Rm    
       Expected gaming win growth               281         (260)           265         (245)   
       Operating expenditure cost growth       (239)         221           (203)         188    
       Risk-adjusted discount rate             (208)         298           (185)         251    
       Long-term growth rate                    178         (125)           143         (106)   
       Total                                     12          134             20           88    
   
       SI put option
       In terms of the acquisition agreement of the SunWest and Worcester interests, in the event that any party 
       acquires 35% or more of the issued ordinary shares of SI triggering a change in control of the SI group, 
       the group may elect to put its equity interests in SunWest and Worcester to SI. SI can elect to either 
       settle the put option by the issue of new ordinary shares in SI and/or for a cash consideration, based on 
       the aggregate value of the group's interest in SunWest and Worcester. At the end of each reporting period 
       the derivative is remeasured and the increase or decrease recognised in the income statement. The 
       derivative is calculated in accordance with the terms of the put option agreement, effectively a 7.5 times 
       Ebitda multiple valuation of the SunWest and Worcester assets, less net debt, times the 20% shareholding 
       the group holds. No derivative has been recognised as the fair value of the option is Rnil at 31 March 2018 
       (Rnil at 31 March 2017).
   
4  TRANSACTIONS WITH NON-CONTROLLING INTERESTS
   The following transactions with non-controlling interests ("NCI") were concluded during the year under review:
   
   4.1 Acquisition of 29 hotel properties by HPF from Tsogo Sun
       HPF acquired two Tsogo Sun subsidiaries which in aggregate hold a portfolio of 29 hotel properties for an 
       aggregate purchase consideration of R3.6 billion settled R1.03 billion in cash (by way of a renounceable 
       rights offer to Hospitality shareholders) and R2.6 billion in shares. This transaction received shareholder 
       approval at the HPF general meeting held on 10 July 2017. The impact of this transaction is a transaction 
       with the NCI of HPF whereby NCI in HPF have been acquired and as a result the group's effective holding 
       increased from 50.6% to 67.8% with effect from 10 July 2017. The overall value of the NCI acquired after 
       also taking into account the effect of the rights issue below was R436 million and the consideration in 
       hotel assets to HPF's NCI was R1.066 billion. The acquisition of the 29 hotel properties by HPF resulted 
       in the deferred tax liability in Merway and Cullinan of R307 million being derecognised due to HPF's REIT 
       tax status.
   
   4.2 HPF rights issue
       HPF shareholders were offered a total of 71 428 571 HPF shares ("rights offer shares") at an issue price 
       of R14.00 per rights offer share in the ratio of 21.76820 rights offer shares for every 100 HPF shares 
       held on the record date of the rights offer. As a result of 99.2% of the rights offer shares being subscribed 
       for by third parties, the group's effective holding decreased from 67.8% (refer note above) to 59.4% in HPF 
       with effect from 4 August 2017. The overall effect of this transaction with NCI is mentioned above.
   
       The resulting transactions with NCI are as follows:
                                                                                     Rm    
       Hotel assets sold to HPF                                                   2 626    
       NCI share in hotel assets sold to HPF (40.6%)                              1 066    
       Total consideration received from HPF                                     (1 466)   
       NCI acquired by Tsogo Sun through share issue from HPF to Tsogo Sun         (436)   
       Cash received from HPF                                                    (1 030)   
       Gain in transacting with NCI in other reserves                              (400)   
   
   4.3 Sandton Eye and Real Right of Extension
       With effect 31 August 2017, HPF issued the last tranche of 2 150 856 shares to Savana Property Proprietary 
       Limited ("Savana") as part settlement in terms of an agreement concluded with Savana to acquire various 
       sections and exclusive use areas of the Sandton Eye sectional title scheme and an agreement with Sandton 
       Isle Investments Proprietary Limited to acquire an existing real right of extension in the scheme for an 
       aggregate purchase consideration of R302 million of which R271 million was settled in cash and 2 150 856 HPF 
       shares were issued (Sandton Eye is part of Radisson Gautrain). As a result of this issue, the group's effective 
       holding was diluted from 59.4% (refer note above) to 59.2%. The value acquired by non-controlling interests was 
       R15 million.
   
5  COMMON CONTROL ACQUISITION
   Acquisition of certain gaming businesses from Niveus Investments Limited ("Niveus")
   Shareholders are referred to the various SENS announcements released by Tsogo Sun during the prior year together 
   with the final SENS issued on 2 January 2018, in respect of, inter alia, the group's acquisition of the shares 
   in Niveus Invest 19 Limited ("Gameco") the holding company of certain gaming businesses in the Niveus group. All 
   conditions precedent to the transaction were fulfilled and/or waived and the transaction's effective date was 
   20 November 2017. In total, 50.8% of the shares were acquired from HCI with effect from 20 November 2017 and an 
   offer to purchase the remaining 49.2% NCI was made on 15 November 2017. In consideration for their Gameco shares 
   the NCI received one ordinary Tsogo Sun share ("consideration share") for every 2.875 Gameco shares or at their 
   election, 20% in consideration shares (in the ratio of one consideration share for every 2.875 Gameco shares) 
   and 80% of R9.796 per Gameco share in cash ("cash-based alternative").
   
   The transaction is deemed to be a transaction under common control and consequently falls outside the scope of IFRS 3
   Business Combinations. Tsogo Sun's accounting policy is to apply predecessor accounting to common control transactions. 
   Common control accounting is applied as the purchase is from HCI, the company's controlling shareholder and under the 
   predecessor accounting method, assets and liabilities acquired, including goodwill acquired, are recognised at the 
   predecessor values with the difference between the acquisition value and the aggregate purchase consideration recognised 
   as a separate reserve in equity.
   
   The acquisition of Gameco is in keeping with the group's strategy of expanding its gaming operations. The identifiable 
   assets less liabilities assumed at acquisition date is less than the value of the consideration paid at the date of 
   acquisition, and therefore the group recognised a common control reserve in the statement of changes in equity of 
   R3.2 billion:
                                                                                 Rm    
   Property, plant and equipment                                                468    
   Investment properties                                                          6    
   Goodwill                                                                      48    
   Other intangible assets                                                       10    
   Other non-current assets                                                       3    
   Deferred tax assets                                                           32    
   Inventory                                                                      8    
   Other current assets                                                         170    
   Cash and cash equivalents                                                    191    
   Other non-current liabilities                                                 (6)   
   Other current liabilities                                                   (391)   
   Income tax liabilities                                                       (15)   
   Total identifiable net assets assumed from Gameco                            524    
   NCI                                                                           38    
   Total carried forward                                                        562    
   
                                                                                 Rm    
   Total brought forward                                                        562    
   Less: Purchase consideration                                              (3 716)   
   Consideration in the form of Tsogo Sun shares to HCI                      (1 625)   
   Consideration in the form of Tsogo Sun shares to NCI                        (358)   
   Consideration in the form of cash payable                                 (1 733)   
   Common control reserve arising on transaction                             (3 154)   
   Net cash flow:                                                                      
   Cash consideration to acquire Gameco                                      (1 733)   
   Add: Cash balances acquired with Gameco                                      191    
   Net outflow of cash                                                       (1 542)   
   
   As part of this transaction the group paid an amount of R95 million for the purchase of Niveus Invest 1, which 
   owns the Grand Oasis Casino "Kuruman", from Niveus which requires the approvals by the Northern Cape Gambling 
   Board, and as these approvals had not been obtained by 31 March 2018, this payment has been accounted for as a
   prepayment.
   
   Excluding the funding impact and by using the group's accounting policies, had the acquisition occurred on 
   1 April 2017, the group's income would have increased by R983 million and adjusted earnings would have increased 
   by R157 million. 
   
   Transaction-related costs of R18 million were incurred during the year and recognised in other operating expenses 
   in the income statement. R9 million share issue costs were also incurred and debited to the share premium account.
   
6  CHANGES IN INTEREST-BEARING BORROWINGS ARISING FROM FINANCING ACTIVITIES
   Changes arising from financing activities for 2018 related to interest-bearing borrowings excluding bank overdrafts 
   from short-term borrowings of R1 707 million (2017: R1 699 million), are as follows:
   
                                  Long-term       Short-term        Total    
                                         Rm               Rm           Rm    
   Balance at 1 April 2017            9 439            3 399       12 838    
   Borrowings raised                  5 961              533        6 494    
   Borrowings repaid                 (2 602)          (2 997)      (5 599)   
   Currency translation                (129)               -         (129)   
   Other                                 (2)               6            4    
   Balance at 31 March 2018          12 667              941       13 608    
   
7  OTHER SIGNIFICANT TRANSACTIONS
    
   7.1 StayEasy Maputo hotel development
       The development of the StayEasy Maputo hotel was substantially completed by the end of March 2018 and was 
       included in plant, property and equipment categorised as "Property under construction" having a cost of 
       R145 million, including capitalised finance costs of R9 million. The hotel commenced trading during April 2018.
   
   7.2 Cape Town City Bowl hotels
       During September 2017, the new SunSquare and StayEasy City Bowl hotels in Cape Town commenced trading. Included 
       in property rental costs are rentals of R28 million related to these new leased hotels.

   7.3 Planned disposal of various casino properties to HPF
       The group continues with the project of the internal restructuring and negotiations with HPF for the acquisition 
       by HPF of certain of the casino precinct properties currently owned by the group in consideration for the issue 
       by HPF of new shares in HPF, and the unbundling of the group's entire interest in HPF as announced on SENS on 
       2 March 2018 and updated on SENS on 18 April 2018. As the necessary shareholder approvals, which is a substantive 
       condition for the transaction to take place, are not considered to be highly probable by the board of directors, 
       these assets have not been classified as non-current assets held for sale.

8  SEGMENT INFORMATION
   In terms of IFRS 8 Operating Segments the chief operating decision maker has been identified as the group's Chief 
   Executive Officer and the Group Executive Committee. Management has determined the operating segments based on the 
   reports reviewed by the chief operating decision maker. There has been no change in the basis of segmentation or 
   in the basis of measurement of segment profit or loss from the last annual financial statements, other than the 
   Gameco operations being included in the Gaming division with effect 20 November 2017 (the acquisition date - refer 
   note 5).
   
   The group's CEO and GEC assess 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 
   earnings adjustments, impairments and fair value adjustments on non-current and current assets and liabilities. 
   Interest income and finance costs are not included in the results for each operating segment as this is driven by 
   the group treasury function which manages the cash and debt position of the group.
   
9  CAPITAL COMMITMENTS
   The board has committed a total of R3.3 billion for replacement and expansion capital items at its gaming and 
   hotel properties of which R2.3 billion is anticipated to be spent during the next financial year. R979 million 
   of the committed capital expenditure has been contracted for.
   
10 CONTINGENT LIABILITIES
   The group had no significant contingent liabilities as at 31 March 2018.
   
11 RELATED PARTY TRANSACTIONS
   The group had no significant related party transactions during the year under review, other than the group concluding 
   the common control acquisition of Gameco with Hosken Consolidated Investments Limited ("HCI") as noted in note 5.
   
12 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
   Other than the dividend declaration noted below, no other events occurred after the balance sheet date.
   
   Dividend declaration
   Subsequent to the company's year end, on 23 May 2018, the board of directors declared a final gross cash dividend of 
   70 cents per share in respect of the year ended 31 March 2018. The aggregate amount of the dividend, which will be 
   paid on 18 June 2018 out of retained earnings at 31 March 2018, not recognised as a liability at year end is 
   R745 million.


Condensed consolidated income statement
for the year ended 31 March
                                                                                    2018         2017    
                                                                    Change      Reviewed      Audited    
                                                                         %            Rm           Rm    
Net gaming win                                                           6         7 940        7 483    
Rooms revenue                                                            3         3 160        3 078    
Food and beverage revenue                                                9         1 561        1 434    
Property rental income                                                  23           549          445    
Other revenue                                                           (2)          765          782    
Income                                                                   6        13 975       13 222    
Gaming levies and value added tax                                                 (1 681)      (1 557)   
Property and equipment rentals                                                      (380)        (303)   
Amortisation and depreciation                                                       (912)        (846)   
Employee costs                                                                    (3 184)      (3 044)   
Other operating expenses                                                          (3 965)      (3 530)   
Fair value adjustment of investment properties                                      (191)         757    
Operating profit                                                       (22)        3 662        4 699    
Interest income                                                                       72           43    
Finance costs                                                                     (1 229)      (1 066)   
Share of profit of associates and joint ventures                                      63           38    
Profit before income tax                                                           2 568        3 714    
Income tax expense                                                                  (410)        (665)   
Profit for the year                                                                2 158        3 049    
Profit attributable to:                                                                                  
Equity holders of the company                                                      1 971        2 507    
Non-controlling interests                                                            187          542    
                                                                                   2 158        3 049    
Number of shares in issue (million)                                                1 059          957    
Weighted average number of shares in issue (million)                                 994          957    
Basic and diluted earnings per share (cents)                           (24)        198.3        262.0    


Condensed consolidated statement of comprehensive income
for the year ended 31 March
                                                                                    2018         2017    
                                                                                Reviewed      Audited    
                                                                                      Rm           Rm    
Profit for the year                                                                2 158        3 049    
Other comprehensive income for the year, net of tax                                                      
Items that may be reclassified subsequently to profit or loss:                      (145)        (194)   
Cash flow hedges                                                                     (83)        (121)   
Currency translation adjustments                                                     (86)         (96)   
Available-for-sale investment fair value adjustment                                    3            -    
Income tax relating to items that may not subsequently be                    
reclassified to profit or loss                                                        21           23    
Items that may not be reclassified subsequently to profit or loss:                     3            2    
Remeasurements of post-employment defined benefit liability                            4            3    
Income tax relating to items that may not subsequently be                    
reclassified to profit or loss                                                        (1)          (1)   
Total comprehensive income for the year                                            2 016        2 857    
Total comprehensive income attributable to:                                                              
Equity holders of the company                                                      1 830        2 315    
Non-controlling interests                                                            186          542    
                                                                                   2 016        2 857    


Supplementary information
for the year ended 31 March
                                                                    Change          2018         2017    
                                                                         %      Reviewed      Audited    
                                                                                      Rm           Rm    
Reconciliation of earnings attributable to equity holders of        
the company to headline earnings and adjusted headline earnings     
Profit attributable to equity holders of the company                               1 971        2 507    
Loss on disposal of property, plant and equipment                                      2           12    
Impairment of property, plant and equipment                                           68           77    
Gain on disposal of investment property                                                -          (36)   
Fair value adjustment of investment properties                                       191         (757)   
Impairment of goodwill                                                                20            -    
Impairment of casino licences and bid costs (intangibles)                             92            1    
Impairment of equity loan to associate                                                 7            -    
Fair value adjustment on non-current assets held for sale                              1            -    
Gain on deemed disposal of financial asset classified as          
available-for-sale                                                                     -          (46)   
Gain on bargain purchases                                                              -          (82)   
Share of associates' headline earnings adjustments                                    (7)           2    
Total tax effects of adjustments                                                     (31)         (27)   
Total non-controlling interest effects of adjustments                                (76)         382    
Headline earnings                                                       10         2 238        2 033    
Other exceptional items included in operating profit                                  58           44    
Early debt settlement costs                                                            3            -    
Gain on remeasurement of put liability                                                 -          (35)   
Deferred tax liability derecognised on plant, property and          
equipment on sale to the group's REIT subsidiary                                    (307)         (56)   
Deferred tax asset derecognised on foreign subsidiary assessed    
losses                                                                                 -           19    
Share of associates' exceptional items                                                (8)         (11)   
Total tax effects of adjustments                                                     (16)           -    
Total non-controlling interest effects of adjustments                                 (2)          (7)   
Adjusted headline earnings                                              (1)        1 966        1 987    
Number of shares in issue (million)                                                1 059          957    
Weighted average number of shares in issue (million)                                 994          957    
Basic and diluted HEPS (cents)                                                     225.2        212.4    
Basic and diluted adjusted HEPS (cents)                                 (5)        197.8        207.6    
Reconciliation of operating profit to Ebitdar(1)                                                         
Ebitdar pre-exceptional items is made up as follows:                                                     
Operating profit                                                                   3 662        4 699    
Add:                                                                                                     
Property rentals                                                                     282          242    
Amortisation and depreciation                                                        912          846    
Long-term incentive (credit)/expense                                                 (24)          49    
                                                                                   4 832        5 836    
Add/(less): Exceptional losses/(gains)                                               439         (787)   
Loss on disposal of property, plant and equipment                                      2           12    
Impairment of property, plant and equipment                                           68           77    
Gain on disposal of investment property                                                -          (36)   
Fair value adjustment of investment properties                                       191         (757)   
Impairment of goodwill                                                                20            -    
Impairment of casino licences and bid costs (intangibles)                             92            1    
Impairment of equity loan to associate                                                 7            -    
Fair value adjustment on non-current assets held for sale                              1            -    
Gain on deemed disposal of financial asset classified as          
available-for-sale                                                                     -          (46)   
Gain on bargain purchases                                                              -          (82)   
Fair value adjustment on interest rate swaps                                           2            6    
Impairment of financial instruments, net of recoveries                               (34)           4    
Pre-opening expenses                                                                  19            -    
Restructuring costs                                                                   38            7    
Transaction costs                                                                     33           27    
Ebitdar                                                                  4         5 271        5 049    
(1) The measure excludes the effects of long-term incentives, non-recurring expenditure, headline earnings 
    adjustments including impairments and fair value adjustments on non-current and current assets and 
    liabilities and other exceptional items


Condensed consolidated cash flow statement
for the year ended 31 March
                                                                                    2018         2017    
                                                                                Reviewed      Audited    
                                                                                      Rm           Rm    
Cash flows from operating activities                                                                     
Operating profit                                                                   3 662        4 699    
Non-cash movements                                                                 1 623          425    
Increase in working capital                                                         (891)        (348)   
Cash generated from operations                                                     4 394        4 776    
Interest received                                                                     72           43    
Finance costs paid                                                                (1 220)      (1 119)   
                                                                                   3 246        3 700    
Income tax paid                                                                     (688)        (627)   
Dividends paid to shareholders                                                    (1 015)        (975)   
Dividends paid to non-controlling interests                                         (161)        (113)   
Pre-acquisition dividend paid                                                          -         (133)   
Dividends received                                                                   110          134    
Net cash generated from operating activities                                       1 492        1 986    
Cash flows from investment activities                                                                    
Purchase of property, plant and equipment - expansionary                            (546)        (665)   
Purchase of property, plant and equipment - replacement                             (564)        (573)   
Proceeds from disposals of property, plant and equipment                               8            1    
Acquisition and development of investment properties                                (443)         (92)   
Proceeds from disposal of investment property                                          -          144    
Purchase of intangible assets                                                        (20)         (14)   
Purchase of available-for-sale financial assets                                        -       (1 272)   
Proceeds from disposal of non-current assets held for sale                             1            -    
Acquisition of Gameco, net of cash acquired                                       (1 542)           -    
Acquisition of HPF, net of cash acquired                                               -          189    
Acquisition of Umhlanga and Pietermaritzburg businesses                                -         (310)   
Loans repaid by associates                                                             -            3    
Other loans granted                                                                    -           (2)   
Net cash utilised for investment activities                                       (3 106)      (2 591)   
Cash flows from financing activities                                                                     
Borrowings raised                                                                  6 494        4 156    
Borrowings repaid                                                                 (5 599)      (2 651)   
Treasury shares settled                                                               86            -    
Cash proceeds from rights issue to HPF non-controlling interests                     995            -    
Share issue expenses arising from the issue of shares for Gameco acquisition          (9)           -    
Acquisition of non-controlling interests                                               -         (655)   
Decrease in amounts due by share scheme participants                                   1            6    
Net cash generated from financing activities                                       1 968          856    
Net increase in cash and cash equivalents                                            353          251    
Cash and cash equivalents at beginning of the year, net of bank overdrafts           725          479    
Foreign currency translation                                                          (8)          (5)   
Cash and cash equivalents at end of the year, net of bank overdrafts               1 071          725    


Condensed consolidated balance sheet
for the year ended 31 March
                                                                                    2018         2017    
                                                                                Reviewed      Audited    
                                                                                      Rm           Rm    
ASSETS                                                                                                   
Non-current assets                                                                                       
Property, plant and equipment                                                     16 038       15 556    
Investment properties                                                              5 255        4 969    
Goodwill and other intangible assets                                               6 507        6 567    
Investments in associates and joint ventures                                         641          609    
Available-for-sale financial assets                                                1 275        1 272    
Non-current receivables                                                               66           60    
Deferred income tax assets                                                           142          121    
                                                                                  29 924       29 154    
Current assets                                                                                           
Inventories                                                                          119          115    
Trade and other receivables                                                          857          682    
Derivative financial instruments                                                       -           14    
Current income tax assets                                                             36           78    
Cash and cash equivalents                                                          2 778        2 424    
                                                                                   3 790        3 313    
Non-current assets held for sale                                                      66           66    
Total current assets                                                               3 856        3 379    
Total assets                                                                      33 780       32 533    
EQUITY                                                                                                   
Capital and reserves attributable to equity holders of the company                                       
Ordinary share capital and premium                                                 6 636        4 576    
Other reserves                                                                    (2 040)         874    
Retained earnings                                                                  6 280        5 321    
Total shareholders' equity                                                        10 876       10 771    
Non-controlling interests                                                          3 318        2 685    
Total equity                                                                      14 194       13 456    
LIABILITIES                                                                                              
Non-current liabilities                                                                                  
Interest-bearing borrowings                                                       12 667        9 439    
Derivative financial instruments                                                     132           37    
Deferred income tax liabilities                                                    1 670        2 029    
Provisions and other liabilities                                                     468          511    
                                                                                  14 937       12 016    
Current liabilities                                                                                      
Interest-bearing borrowings                                                        2 648        5 098    
Trade and other payables                                                           1 876        1 867    
Current income tax liabilities                                                       125           96    
                                                                                   4 649        7 061    
Total liabilities                                                                 19 586       19 077    
Total equity and liabilities                                                      33 780       32 533    


Condensed consolidated statement of changes in equity

                                                                       Attributable to equity holders of the company
                                                                 Ordinary share                                                 Non-       
                                                                    capital and        Other     Retained                controlling      Total  
                                                                        premium     reserves     earnings       Total      interests     equity  
                                                                             Rm           Rm           Rm          Rm             Rm         Rm  
Balance at 1 April 2016 (audited)                                         4 576         (232)       3 974       8 318            654      8 972  
Total comprehensive income                                                    -         (194)       2 509       2 315            542      2 857  
Profit for the year                                                           -            -        2 507       2 507            542      3 049  
Other comprehensive income                                                    -         (194)           2        (192)             -       (192) 
Settlement of Cullinan put liability with non-controlling interests           -          493         (187)        306           (306)         -  
Consideration to HPF non-controlling interests in hotels assets               -          968            -         968            353      1 321  
Acquisition of non-controlling interests from HPF                             -            -            -           -          1 592      1 592  
Acquisition of Mykonos and Blackrock casinos' non-controlling interests       -         (161)           -        (161)           (37)      (198) 
Ordinary dividends                                                            -            -         (975)       (975)          (113)    (1 088) 
Balance at 31 March 2017 (audited)                                        4 576          874        5 321      10 771          2 685     13 456  
Total comprehensive income                                                    -         (144)       1 974       1 830            186      2 016  
Profit for the year                                                           -            -        1 971       1 971            187      2 158  
Other comprehensive income                                                    -         (144)           3        (141)            (1)      (142) 
Issue of ordinary share capital                                           1 974            -            -       1 974              -      1 974  
Treasury shares settled                                                      86            -            -          86              -         86  
Consideration to HPF non-controlling interests in hotels assets               -          (37)           -         (37)         1 067      1 030  
Acquisition of non-controlling interests from HPF                             -          436            -         436           (436)         -  
Consideration to HPF non-controlling interests - Sandton Isle                 -          (15)           -         (15)            15          -  
Common control reserve arising on acquisition of Gameco                       -       (3 154)           -      (3 154)             -     (3 154) 
Acquisition activity Gameco                                                   -            -            -           -            (38)       (38) 
Ordinary dividends                                                            -            -       (1 015)     (1 015)          (161)    (1 176) 
Balance at 31 March 2018 (reviewed)                                       6 636       (2 040)       6 280      10 876          3 318     14 194  


Segmental analysis
for the year ended 31 March
                                           Income(1)              Ebitdar(2)           Ebitdar margin      Amortisation and depreciation
                                       2018        2017         2018       2017        2018      2017            2018      2017    
                                         Rm          Rm           Rm         Rm           %         %              Rm        Rm    
Casino gaming                                                                                                                      
Montecasino                           2 625       2 694        1 135      1 196        43.3      44.4             111       111    
Suncoast                              1 681       1 732          752        810        44.7      46.8              84        88    
Gold Reef City                        1 497       1 450          569        549        38.0      37.9             118       109    
Silverstar                              686         735          212        248        30.9      33.7              80        82    
Golden Horse                            397         392          177        176        44.6      44.8              31        34    
Emnotweni                               381         383          136        145        35.7      37.9              28        29    
The Ridge                               381         382          145        147        38.0      38.6              30        29    
Hemingways                              314         306           97         95        30.8      31.2              38        40    
Garden Route                            235         225           99         96        41.9      42.8              16        15    
Mykonos                                 183         162           86         72        47.2      44.5              11        11    
The Caledon                             177         175           49         54        28.0      30.6              11        10    
Blackrock                               160         170           54         65        33.6      37.9              12        12    
Goldfields                              135         133           38         41        28.5      31.0              12        10    
Alternative gaming(3)                                                                                                              
Galaxy                                  263         n/a           69        n/a        26.2       n/a              12       n/a    
Vukani                                  362         n/a          169        n/a        46.7       n/a              34       n/a    
Other gaming operations                 184         195         (141)      (154)                                   13        14    
Total gaming operations               9 661       9 134        3 646      3 540        37.7      38.8             641       594    
South African hotels division(4)      3 799       3 509        1 470      1 359        38.7      38.7             231       213    
Offshore hotels division                565         635          120        108        21.2      17.0              38        35    
Pre-foreign exchange gains/(losses)                              119        146        21.1      23.0                              
Foreign exchange gains/(losses)                                    1        (38)                                                   
Corporate(4)(5)                         (50)        (56)          35         42                                     2         4    
Group                                13 975      13 222        5 271      5 049        37.7      38.2             912       846    
(1) All revenue and income from gaming and hotel operations is derived from external customers. 
    No one customer contributes more than 10% to the group's total revenue
(2) All casino units are reported pre-internal gaming management fees
(3) Gaming division includes Galaxy and Vukani ("Gameco") with effect from 20 November 2017 - refer note 5
(4) Includes R50 million (2017: R55 million) intergroup management fees
(5) Includes the treasury and management function of the group


DIRECTORS: JA Copelyn (Chairman)* 
J Booysen (Chief Executive Officer) 
RB Huddy (Chief Financial Officer) 
MSI Gani**
MJA Golding** 
BA Mabuza (Lead Independent)** 
VE Mphande* 
JG Ngcobo** 
Y Shaik* 
(*Non-executive Director **Independent Director)

COMPANY SECRETARY: GD Tyrrell

REGISTERED OFFICE: Palazzo Towers East, Montecasino Boulevard, Fourways, 2055 (Private 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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