Strategy and performance highlights



How we create long-term sustainable value

The key pillars of our sustainability include meeting the reasonable requirements of our beneficiaries, financial strength and durability, maintaining product relevance to customer experience, regulatory compliance and having adequate skilled human resources. A business has to stay in business to be able to take advantage of the commercial opportunities that are presented to it.

The value of a business is the present value of the future cash flows that can be generated by the assets and other capitals utilised by the business. Growth in cash flows over time are generated through the optimal operation of the group's capitals (organic growth) and building the tangible and intangible asset base of the group through developing and acquiring new businesses (inorganic growth).

 

 

SUSTAINABILITY




  • Deliver to our
    beneficiaries

    The nature of the shareholders and those to whom economic benefits flow are an important protection

    Level 2
    BBBEE contributor

    Black ownership 62%

    R8.9 billion
    value added to black economic empowered businesses and government

    43 945
    learners supported through Tsogo Sun Academies


  • Financial strength
    and durability

    An appropriate capital structure is important to ensure the business survives through economic cycles



    Net debt to Ebitdar
    2.0 times

    Unutilised net facilities R4.8 billion

    49-month weighted average expiry of debt facilities

    57%
    of net debt hedged

  • Product relevance to
    customer experience

    To remain relevant a variety of quality experiences must be provided at appropriate price points

    15 200
    hotel rooms across all market segments

    14
    gaming and entertainment destinations

    75%
    of gaming revenue from reward club members

    33%
    of hotel revenue from reward club members

    77%
    gaming guest satisfaction

    87%
    hotels guest satisfaction

  • Regulatory
    compliance

    The retention of gaming licences through a strict compliance culture is critical

    No significant gaming regulation breaches


  • Human
    resources

    Qualified, trained, talented and empowered people are required to deliver the Tsogo Sun experience

    12 800
    direct employees in South Africa

    22 800
    combined direct and indirect jobs in South Africa

    Training spend
    4.5%of payroll


  • GROWTH

    Inorganic

    Building the tangible and intangible asset base of the group generates growth in cash flow and thus value

    Investment activity expenditure

    R1.0 billion

    Organic

    Optimal operation of the group's capitals generates growth in cash flow and thus value

      2016   2015   %
    change
    Income (Rm) 12 283   11 343   8
    Ebitdar (Rm) 4 543   4 223   8
    Ebitdar margin (%) 37.0   37.2   (0.2pp)
    Adjusted headline earnings per share (cents) 196.5   175.0   12
    Dividend for the year per share (cents) 98.0   89.0   10
    Free cash flow (Rm) 1 953   1 811   8
    Maintenance capital expenditure (Rm) 945   749