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).

  • GROWTH

    INORGANIC

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

    Investment activity expenditure

    R2.6 billion

    ORGANIC

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

      2018 2017
    change 
    Income (Rm) 13 975 13 222
    Ebitdar (Rm) 5 271 5 049
    Ebitdar margin (%) 37.7 38.2 (0.5pp)
    Adjusted headline earnings per share(cents) 197.8 207.6 (5)
    Dividend for the year per share (cents) 102.0 104.0 (2)
    Free cash flow (Rm) 1 938 2 217 (13)
    Maintenance capital expenditure (Rm) 675 925  
  • SUSTAINABILITY

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

    DELIVER TO
    OUR BENEFICIARIES

    Level 1

    BBBEE contributor

    65%


    black ownership

    R8.4 billion

    value added to black economic empowered businesses and government

    242 beneficiaries supported through Tsogo Sun Entrepreneurs programme


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

    FINANCIAL STRENGTH
    AND DURABILITY

    Net debt:Ebitdar
    2.4 times

    Unutilised net facilities

    R4.7 billion

    32-month weighted average expiry of debt facilities

    53%

    of net debt hedged


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

    PRODUCT RELEVANCE TO
    CUSTOMER EXPERIENCE

    28 000

    hotel rooms
    across all market
    segments

    13

    gaming and entertainment destinations

    21 Bingo and

    1 113 LPM sites

    77%

    gaming guest satisfaction

    88%

    hotels guest satisfaction

  • The retention of gaming licences through the strict compliance culture is critical

    REGULATORY COMPLIANCE

    REGULATORY COMPLIANCE


    No significant
    gaming
    regulation breaches

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

    HUMAN RESOURCES

    14 000

    direct
    employees
    in South Africa

    24 500

    combined direct and indirect jobs in South Africa

    Training spend

    5.2% of payroll