INTEGRATED ANNUAL REPORT About this report For the year ended 28 February 2015
Defining report content and materiality but do not own have been included. In addition, we have included sustainability data for Central African Wilderness The sustainability strategy and structure of Wilderness, which Safaris Limited which was treated as an associate in the is based on the 4Cs (Commerce, Conservation, Community financial statements until the effective date of the sale of and Culture), was first implemented in 2010. At that time, this business; and the content of the integrated reports that followed was also established. Sustainability is built into the very DNA of • We have not covered impacts arising in our supply chain. Wilderness, where sustainability specialists across the 4Cs are We do, however, intend to extend our boundaries to employed at both regional and Group levels (see p17). include our supply chain in future. These specialists have been responsible for defining the A full list of the reporting units falling within the scope of this content of the report, based on the aspects they believe to report is given in the Appendices. To summarise, the report be most material in their respective C. At the outset, this covers: process was also overseen and advised on by an independent consultant specialising in sustainable ecotourism. • Seven offices in five countries (this is a reduction from the 11 offices reported in 2014, due to the sale During the process we also defined the various elements of of our investments in the tour operating business in our stakeholder universe (see figure 8, p 19). Aspects are Swakopmund and the Malawi associate Central African considered material and have been included in the report if, Wilderness Safaris Limited); from the process described above, they are believed to have • Flying operations in three countries; a significant impact on the business or on one or more of our stakeholders and their respective engagement with Wilderness. • 52 camps in seven countries. This differs from the numbers Regular sustainability workshops held since 2010 have ensured reported in prior years as the result of the following that we continue to re-evaluate our materiality definition changes: process. The sustainability or 4Cs specialists are responsible – Addition of Hoanib Skeleton Coast Camp in Namibia; for prioritising the material issues within their respective C. – Sale of Pafuri Camp in South Africa which was This is approved by the Sustainability Committee which is previously damaged by flooding; and tasked by the Board to provide oversight in all sustainability issues. This process also allows us to ensure that any aspects – Sale of the Malawi business which operates six camps. that may under normal circumstances be considered material Where possible and meaningful, we have shown the effects of to the industry, but which we do not believe are material the changes in scope and illustrated trends in performance. to our organisation or our stakeholders, are given due consideration and attention. We take further comfort that an attempt at a more objective materiality process undertaken Accuracy, completeness and comparability of data in 2015 has resulted in no significant changes to the material This is the Group’s fifth integrated report. The data reported aspects covered in the Integrated Report. Where relevant the in this document is based on our fifth year of reporting on materiality matrix results are provided in the report, while the sustainability indicators. We believe that there has been a general full assessment results can be found in the online appendices. improvement in the quality of the data and some errors reported in prior years have been detected and corrected. Nonetheless, Scope and boundaries some of the data continues to be based upon broad assumptions The scope of this report covers the aspects deemed material and extrapolations and requires further refinement (we have in the context of the Group and its stakeholders, based upon noted where this is the case). As time goes by, we expect the process described above. We have prepared the report our measurement and reporting activities to become more in accordance with the GRI G4 – Core. However, the GRI sophisticated and therefore more accurate and complete. indicators are biased towards manufacturing and extractive industries and contain many matters that are not relevant to Context and attribution our operations. These have been excluded and a note to that This report outlines and discusses progress across a wide effect has been made in the GRI checklist. At the same time, range of dimensions, using the 4Cs sustainability framework the remaining GRI aspects do not cover all matters which are which is explained in some detail in the body of the report. It relevant to us. In order to capture these missing items, we have is important to note that our degree of influence varies across reviewed a number of sustainable tourism initiatives to identify these dimensions and from location to location, depending other possible issues and included these in our assessment upon the nature of our tenure and contractual engagement, framework. The resulting framework is therefore an amalgam and local circumstances. As a consequence of this, the extent to of the GRI indicators which are relevant to our business, plus which we are solely responsible for any advance or regression additional indicators from other sources. in whichever dimension also varies. For example, under the Comments about this report and sustainability initiatives Conservation C, our degree of influence over biodiversity detailed herein can be directed to varies greatly and so we take care when claiming any direct [email protected]. attribution. This report covers our financial year from 1 March 2014 to Likewise, under the Community C, the level of our impact on 28 February 2015. The financial results reported are those local communities varies according to the size of the area of the Wilderness Holdings Limited Group. A full list of concerned, the size and proximity of the community concerned, the companies making up this Group is presented in the the nature of our involvement, and other factors. We have Appendices. taken care in these situations to make clear the extent to which any achievements or failures under these dimensions are a The financial scope and boundaries of this document have consequence of our engagement. been set in accordance with International Financial Reporting Standards. Full details of the accounting policies adopted Assurance are given in the Annual Financial Statements. In terms of the We have considered the recommendation of the King Code of sustainability aspects reported in this document, we have Corporate Governance (King III) to seek independent third party adopted the following approach to setting the scope and assurance and decided not to seek external assurance this boundaries: year. We believe that our reporting processes have improved • We report the results associated with operations falling and are still improving after previous assurance engagements. directly under our control. This means that camps which When our sustainability data gathering matures further, we we market but do not manage have been excluded from may consider seeking external assurance again, once it is clear the boundaries, whereas those camps that we manage that there is real value associated with doing so.
A | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | a Contents
About this report Key performance At a glance Top achievements in Our African The Wilderness Board of Flap indicators Who is Wilderness? sustainability footprint business directors 1 2 4 6 8 20
Chairman’s letter Chief Executive Sustainability Commerce Conservation Community Culture 22 Officer’s letter Report 28 34 50 76 24 26
Corporate Report of the Audit Report of the Report of the Global Reporting Annual financial Directors’ governance Committee Remuneration Social, Ethics and Initiative (GRI) G4 statements responsibility 84 94 and Nomination Sustainability content index 102 and approval of Committee Committee 100 the annual financial 95 99 statements 104
Directors’ Independent Group financial Company financial Appendices Corporate report auditor’s report to the statements statements 165 information 105 shareholders 110 154 Inside back cover 108 About Wilderness Sustainability report Corporate governance Annual financial statements 1 78 83 n/a 1.24 2.16 2.39 0.09 0.081 0.085 Target: 0.08 Target: e) 2 Target: 0.5 Target: See p52 for further information See p48 for further information See p46 for further information Conservation 2013 2013 2013 Guest satisfaction (%) Bottled water consumption (l/bednight) Production, transport and disposal of plastic Production, water bottles is a major environmental the Through challenge worldwide. of water purified on-site, and the provision have steel bottles, we use of recyclable of bottled reduced the amount significantly water used in our business. is to satisfy guests Our ultimate objective visits and word- repeat and thus encourage and track therefore We of-mouth referrals. based monitor guest feedback carefully, you on the Ultimate Question “Would to friends/family?” the product recommend Carbon emissions per bednight Carbon emissions per (tonnes CO 2015 2015 2014 2015 2014 2014 Given concerns about global warming, Given of the business are carbon emissions from report We to stakeholders. interest great this on a per bednight basis to eliminate the of business. effects of changes in the level 11.13 2 436 2 594 2 663 31.66 16.07 Integrated Annual Report 2015 | Holdings Limited Integrated Wilderness 843 288 843 944 586 744 935 See p61 for further information See p129 for further information See p31 for further information 2013 Wilderness employs staff from the staff from employs Wilderness communities in which our camps or This is often in the located. are operations and to train strive and we areas most remote better opportunities locals to create develop for them. Numbers of staff employed 2015 2014 HEPS accepted as the earnings is generally of an to the operating/trading that relate entity and not those items (such as the of certain to that relate assets) revaluation The the capital platform of the business. essentially items are operating/trading in the current performance those that reflect period (sales, salaries, etc.) and that can (modified or not) into the be extrapolated future. Bednight sales, multiplied by the rate the rate Bednight sales, multiplied by per bednight sold (which varies achieved season camp to camp and from from in source us turnover to season), gives due This is difficult to illustrate currency. involved. to the number of currencies converted into the turnover, Therefore, of the business. growth shows Pula, 2013 2013 Headline earnings per share (thebe) Headline earnings per share Turnover (P’000) Turnover 2015 2015 2014 2014 65 62 56 76 232 48 490 27 704 43 401 36 813 30 851 Targets for financial KPIs have not been shown in view of stock exchange restrictions on publishing forecast data. restrictions on publishing forecast in view of stock exchange not been shown have KPIs for financial Targets this For stage of implementation. indicators, at least not at our present C does not lend itself to measurable The Culture given. however are In the body of the report, KPIs here. quantitative presented are for Culture no KPIs reason, See p110 for further information See p33 for further information See p70 for further information Our after-tax earnings are the figure of most the figure are earnings Our after-tax is the amount that This to investors. interest of the Company is attributable to the owners to be distributed and could theoretically earnings them, subject to the need to retain for working capital and capital expenditure. Numbers of bednights sold is the most results. basic determinant of our financial beds of available numbers varying However, distort(due to new camps or closures) this in percentage and so occupancy rates result the most useful indicator of terms are capacity utilisation. Net profit after tax (P’000) after Net profit 2013 Commerce beds (%) owned Occupancy rates, 2013 2015 2015 2014 2014 Payments for concessions, in the form of Payments together shares, or profit royalties rentals, with wages paid into local communities, constitute a major contribution to local economies. Notes: • • 2013 Joint venture and other payments to Joint venture community partners (P’000) 2015 2014 Community The body of this report provides detailed indications of our performance of our performance detailed indications reportThe body of this provides of our key snapshot of some a high-level page provides This the 4Cs. across indicators: performance Key performance indicators At a glance Who is Wilderness?
Our vision is to be Africa’s leading ecotourism organisation, creating life-changing journeys in order to build sustainable conservation economies and inspire positive action.
Values Our values provide a moral compass and framework for decision making and day-to-day operations within our organisation.
Leadership Authenticity Integrity
We have the courage to innovate We always remain loyal We are respectful, and are purpose-driven in to the Wilderness Way. honest and ethical. shaping a better Africa.
2 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 3 About Wilderness Sustainability report Corporate governance Annual financial statements 3 Commitment Our dedication to the and our environment guests is unwavering. CONSERVATION CULTURE Integrated Annual Report 2015 | Holdings Limited Integrated Wilderness We aim to maximise the positive impact of our aim to maximise the positive We and to build conservation on biodiversity operations in the most eco-friendly way and manage our camps impact. negative possible to minimise our We respect and promote our unique Wilderness Wilderness our unique and promote respect We those of all our employees as as well culture, hope to We communities. and neighbouring rural of respect culture impact a global positively for the environment. and care Accountability take responsibility We for our actions. COMMUNITY COMMERCE People are at the heart of our business. We hope to at the heartWe are of our business. People our staff opportunities to inspire and growth provide love and external communities to learn about nature, the and conserve it, and to realise importance of ecotourism. We create life-changing wilderness journeys for create We and work closely with our our guests and clients, partners, and community conservation Government to ensure stakeholders and shareholders, and the ongoing financial success sustainability of our business. Blueprint Fun making a enjoy We and changing difference lives. people’s Figure 1: Blueprint Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 2 Top achievements in sustainability
Commerce
Wilderness flying business in Botswana implements new initiatives
Following the global economic crisis in 2009, our flying business in Botswana was hard hit. Other than lower passenger numbers resulting from reduced demand out of target markets, an additional contributing factor was the higher fuel costs that peaked at nearly US$130 a barrel in mid-2011 (today around US$65). This led to the implementation of new initiatives in 2012 that included reduced flying to non-Wilderness products, better usage of empty seats by combining staff movements with guest transfers and a greater focus on eliminating dead or empty legs. The result is that over the last three years total kilometres flown have reduced by 7% with the passenger count remaining relatively flat and EBITDA increasing by 44% over 2014, from a loss in 2013.
Conservation Black rhino translocated to Botswana
During 2014, Wilderness Safaris successfully translocated a founder population of Critically Endangered black rhino to the Okavango Delta World Heritage Site in a joint collaboration with the Botswana and South African Governments. This is part of an ongoing conservation project to establish a core population of this species in Botswana and will be followed by further translocations from Zimbabwe and South Africa in 2015. Namibia solar plant
In Namibia, Hoanib Skeleton Coast Camp, situated in the Palmwag Concession, opened on 1 August 2014. This is our first 100% solar-powered camp in Namibia, following on from the success of the solar conversions in Botswana. The camp’s diesel consumption since August was only 382 litres, approximately 4% of the 9 623 litres consumed over the same period at Damaraland Camp (which is a similar size to Hoanib Skeleton Coast Camp). The carbon emissions are minimal, with Hoanib
Skeleton Coast only emitting one tonne of CO2e
while Damaraland emitted 25 tonnes CO2e.
4 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 5 About Wilderness Sustainability report Corporate governance Annual financial statements 5 Integrated Annual Report 2015 | Holdings Limited Integrated Wilderness Culture Wilderness Safaris Ethics and Codes Charter Tourism of Conduct for Cultural and finalised a During the reporting developed period we Safaris Ethics CharterWilderness and Codes comprehensive which will be the guide Tourism of Conduct for Cultural The Charter engagement. highlights positive for cultural conduct for both staff and guests, and promotes behavioural mutual respect. ethical engagements which develop Heritage Day Wilderness’ This document is to be launched on for our guests throughout 2015 and will also be available into our training their journey with us. It is to be incorporated Wilderness. of manuals and uphold the values In 2014, Wilderness Safaris’ non-profit Children in the Children non-profit Safaris’ Wilderness In 2014, (CITW) won the PUREWilderness initiative for Community Award Engagement. the PURE form part Awards of its second year, in Now the annual PURE in event trade Life Experiences travel in the field of high-end excellence celebrating Morocco, After the judging panel selected a experiential travel. shortlist of finalists for six categories, PURE attendees for the most deserving in each one. voted initiative by The Community Engagement category was defined and sensitively PURE“strategically that as an initiative itself with the aligning the local community, integrates the inhabitants and protecting and priorities of values enriching the while the authenticity of the culture, experience of the traveller.” Community for in the WildernessChildren PURE Award wins Community Engagement Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 4 Our African footprint
Seychelles Wilderness Collection: 22 beds
1 Managed
Kenya Wilderness Collection: 16 beds
* Segera Retreat in Kenya is not reported on in the sustainability 1* chapters as it falls out of the scope and boundaries of this report.
Congo Wilderness Collection: 24 beds
2 Managed
Zambia Wilderness Safaris: 88 beds
Victoria Falls
1 Owned | 1 Leased
6 Owned
Zimbabwe Wilderness Safaris: 116 beds
Victoria Falls
5 Owned
7 Owned
Namibia Wilderness Safaris: 270 beds
Windhoek
11 Owned | 4 Leased
9 Owned | 4 Managed
Botswana Wilderness Safaris: 328 beds • Wilderness Collection: 12 beds
Maun | Gaborone
14 Owned | 2 Leased
20 Owned | 2 Managed South Africa Wilderness Safaris: 34 beds
Johannesburg | Cape Town Travel Shops and internal sales 1 Owned Aircraft
Camp operations and explorations Figure 2: Our African footprint
6 | Wilderness Holdings Limited Integrated Annual Report 2015 About Wilderness Sustainability report Corporate governance Annual financial statements 7
f mouth: positive feedback Word o party aircraft party Integrated Annual Report 2015 | Holdings Limited Integrated Wilderness rd rd 3 3 flying and road flying and transfers accommodation Tour operators Other inputs Satisfied guests Prospective Prospective guests Wilderness Wilderness Travel Shops Travel
Travel agents for an African safari Build a complete itinerary Build a complete itinerary Owned camps Owned aircraft Host the guests and deliver the guest experiences Host the guests and deliver Wilderness ground and air operations and ground Wilderness Core inputs Core Wilderness businessWilderness model The Wilderness business model is business Wilderness The simple form in in very illustrated the diagram. Figure 3: Wilderness business model Wilderness 3: Figure The Wilderness business
Wilderness Safaris had its formal beginnings in Botswana in 1983. Two young overland safari guides, a South African and a New Zealander, had been working in the remote, wilderness reaches of the country since 1977 and, by the early 1980s, had decided to strike out on their own.
Their reasons for taking this plunge The product sold to our guests, through multifaceted but can be simplified were: the travel trade, is vertically integrated as per the Figure C in the online • They wanted somehow to ensure and comprises packages incorporating appendices. that the financial benefits of their some or all of the following elements: The Group has a stable of trading safaris flowed to Botswana and • Safari camps, lodges and mobile brands. Wilderness Safaris is the its people and thus help to ensure explorations form the basis of the original trading brand of the Group the conservation of the country’s business. These are offered by a and offers safaris based out of both wildlife areas; and network of 43 camps, comprising fixed and mobile camps (the latter 734 beds in total, in five southern • They wanted to offer authentic under Wilderness Explorations) in African countries. (In addition to safaris with integrity that catered three tiers of camps: Premier, Classic these ‘owned’ camps, we also for people as passionate about and Adventures. These are supported manage a further nine camps, nature as they were. by the travel trade and travel agents comprising 160 beds); specialising in the booking and At the time, most professional safari • Guests, staff and camp/lodge arranging of African travel. These lodge outfitters in the photographic side of supplies are transported to and and camp operations are supported by the industry were not based in Maun, between the camps using air Wilderness Air, our flying business. The employed mostly expatriates and and ground transfers. In order to other trading brand is the Wilderness sourced their supplies in neighbouring achieve this, our flying business Collection. This is a stable of unique South Africa. The Wilderness founders owns a total of 31 aircraft and sustainable tourism operations in wanted to change this and accordingly leases a further seven. We operate locations at a distance from our registered a Botswana company and significant ground transfer original areas of operation. based themselves in Maun, south of businesses in Cape Town, Victoria the Okavango Delta. Falls and Livingstone; and Growth in the Wilderness Group has been achieved over the years by In retrospect this approach was logical • These integrated itineraries are moving the same business model into and today forms the cornerstone and developed and booked through a those regions that enjoyed significant central tenet of ecotourism the world tour operating and reservations support from our channels to market. over. But in the early 1980s it was a business operating out of six Our move into the various different ground-breaking philosophy and set offices in four countries. This often biomes (i.e. major regional biotic Wilderness Safaris apart. incorporates third-party products into the itineraries, for a margin. communities characterised by specific From these humble beginnings in climate, vegetation and fauna, of which Botswana the business gradually These operating elements are Wilderness presently operates in eight expanded into the rest of southern supported by a finance and asset of the 11 in southern Africa) was an Africa and Seychelles. Over time, the management segment. effort to ensure that complementary business has evolved into a specialist experiences are offered by the tourism A total of 2 436 staff are employed in luxury safari operation with 52 different business. these businesses. safari camps and lodges, comprising a total of 894 beds, in seven African The business is currently supported countries and hosting in excess of by international and local markets, 30 000 guests per annum. and has a value proposition of “selling original experiences in pure Overview of the business wilderness” to discerning international Wilderness Holdings is a Botswana travellers. We sell these experiences company, listed on the Botswana Stock to the consumers, our guests, largely Exchange and with a secondary inward through the travel trade, our clients. listing on the JSE Limited. The Company The channels through which these acts as the investment holding vehicle sales are made are complex and for the business.
8 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 9 About Wilderness Sustainability report Corporate governance Annual financial statements 9 turnover Reported Source turnover currency currency movements Exchange rate rate Exchange sold Integrated Annual Report 2015 | Holdings Limited Integrated Wilderness achieved High occupancy push rates selling prices achieved Bednights Selling pricesSelling Global tourism tourism Demand demand products for national Demand for and services our products our products
Quality of the destinations influences quality of our products State State global cost of access and PR Lack of services political stability services national economy Ease and locations of global Quality of Regional/ Regional/ marketing Cost of our Destination destinations products and products products and products Quality of our Quality of our perturbations service areas Ongoing National relations resources People and People Biological standards Neighbour development governance governance of protected of protected infrastructure infrastructure Investment in Investment Management maintenance of Quality of areas protected is influenced of standards by governance Wilderness revenue drivers and their determinants and their drivers revenue Wilderness (selling prices) rates bednight sales (occupancy rates), business are Wilderness in the most important of revenue The three drivers by in turn determined and influenced are These drivers at the time. prevailing of exchange rate and the currency in source achieved in the diagram. a number of factors as shown Global Regional Company National Figure 4: Wilderness revenue drivers and their determinants drivers revenue Wilderness 4: Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 8 The Wilderness business continued
Value and supply chains business was constrained by two main from our operations). During the year and related groups of factors: under review, the Ebola outbreak in The value and supply chains of the West Africa had a noticeable effect on business are illustrated in Figure 5 • Low levels of demand for our demand for our products, despite the alongside. products due to the depressed state of the world economy – fact that this was geographically far The diagram shows how prospective particularly that of Europe; and removed from any of our operations. guests are converted into guests by our • The strength of the South African Currency fluctuations trade partners and introduced into the Rand and Botswana Pula against business. This process is facilitated by our main trading currencies, which Our products are largely priced in the our network of offices and travel shops are the United States Dollar and currencies of our source markets and but the main product is delivered the Euro. most of our revenues are therefore through our network of safari camps, generated and received in those largely through the use of our own Both of these groups of factors currencies. The United States Dollar is flying (and other transfer) businesses. have moved in our favour over the our most important trading currency. The main output of the process is last few years but fluctuations in Conversely, most of our costs are hopefully satisfied customers, both demand for our products, and in the incurred in local currencies, of which the agent network and the guests relative strengths of our trading and the Botswana Pula, South African Rand themselves. operating currencies, remain risks to (or the linked Namibian Dollar) and the business. These are discussed the United States Dollar are the most Our supply chain is two dimensional in below, as are five other prominent important. Revenues and costs are of that it comprises: potential risks to the business, namely course converted into Botswana Pula • The supply of guests, through quality maintenance, tenure, safety for reporting purposes. Fluctuations in the agent network, and their flow and security and country political risk, the respective strengths of our source, through the business; and as well as the changing structure of operating and reporting currencies • Other inputs, mainly the efforts channels to the market. therefore impact on our business in a of our people (which is why we number of respects: state that our people are the Fluctuations in levels of demand for our • Through the impact on our margins heart of our business). We also products where revenues are derived in buy in various goods and services source currencies but expenses are Our products are luxury and needed to operate our camps and incurred in operating currencies; discretionary purchases. Demand flying businesses to the necessary for them is sometimes depressed by • Through their impact on price standard. factors beyond our control, especially and demand where some source currencies are weak when Finally, we also outsource elements when economic shocks are experienced compared against operating of the value chain by using third- in our source markets. This was a currencies. Our business model party accommodations and flying to particular problem for the business in is predicated on the assumption complete the itineraries of our guests. the years following the onset of the global economic crisis late in 2008. that local currencies will devalue This process results in some by- A slow but steady recovery — against source currencies in products, mainly waste of three particularly out of the United States, reflection of the inflation and forms: waste water, carbon emissions our main source market — commenced interest rate differentials between our operating countries and source and solid and organic waste. in 2010 and demand out of this market markets. Where this does not These wastes are the focus of the has returned to pre-crisis levels. occur, as in the strengthening of Environmental Management Systems However, demand out of Europe, our the Rand against the Dollar in the under the Conservation dimension of next most important market, was years following the global financial the 4Cs, detailed in the chapter from slower to recover and remains subject crisis, the business is placed under page 44. to occasional shocks. pressure. Currencies have largely Other global factors, especially those moved in our favour during the Risks that suppress levels of travel by reporting period (there have been The performance of the business international tourists, occasionally confounding movements); and during the year under review is depress demand for our products. • Translation impacts from operating discussed in detail in the Commerce Examples of such factors include global currencies in the various countries chapter. In the years immediately sporting events, which result in people in which we operate, to the following our listing in 2010, the staying at home to watch them, and reporting currencies. performance and growth of the major conflicts (even those remote
10 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 11 About Wilderness Sustainability report Corporate governance Annual financial statements 11 | projects waste water Waste Waste organic Solid and Emissions Conservation Waste Economic contributions Integrated Annual Report 2015 Holdings Limited Integrated Wilderness business Camps The Wilderness Wilderness The Outputs Trade Trade Rural Rural guests Guests partners Prospective Prospective development Flying Offices income Community Inputs Boundaries of the Boundaries of the reportintegrated party Our rd people services 3 suppliers goods and Purchased Purchased Satisfied customers Impact on the environment Value and supply chains and supply Value Figure 5: Value and supply chains Value 5: Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 10 The Wilderness business continued
These currency risks are managed Quality maintenance and customer • Ancillary aspects of our offering, through a variety of mechanisms satisfaction including transfer services and the including: Satisfied customers, whether guests third-party products and services. • The business employs a ‘natural’ or their agents, are the most important This is one of our main strategic or ‘internal’ hedge by borrowing, in output of our business. We also imperatives and is further expanded the main, in the same currency (the rely heavily on repeat business and on below. United States Dollar) in which the word-of-mouth referrals to generate bulk of our revenues are earned; and new business. For these reasons, Tenure • Use of a variety of forward foreign it is critical that we maintain the exchange contracts (FECs) to quality of our products and ensure Almost all of our camps are located on limit our exposure on US Dollar that all customers are delighted by land leased under a variety of long- revenues being converted into their engagements with us. This is a term lease and concession agreements operating and reporting currencies. continual focus of the business across with either state or community landlords and partners. This means many facets: Over the last few years, as the that the long-term sustainability of • Agent satisfaction resulting from economic fundamentals of the Rand the business is dependent upon the their engagements with our have deteriorated and it has devalued goodwill of these landlords. We use against the Dollar, we have placed less travel shops, on behalf of their a variety of mechanisms to ensure reliance on these mechanisms: we customers; this goodwill persists, including have taken on local currency debt • Guest satisfaction resulting from paying market-related rentals or and we have also reduced the levels their enjoyment of their visits to profit shares, regular dialogue and of forward exposure that are hedged our camps and the experiences responsible business practices. See the through FECs. offered therein; and discussion under External Community
Above: Linkwasha Camp, Zimbabwe.
12 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 13 About Wilderness Sustainability report Corporate governance Annual financial statements 13 | Expansion of our footprint; and improvements; Productivity Gaining as growth market share accelerates. Increasing utilisation of existing Increasing capacity; Increased transparency in rate and in rate transparency Increased price structures; rate of and revision Review structures; between Decoupling of rates thus allowing differing products, further flexibility in development and of itineraries; meaningful Engaging in a more dialogue with our guests to drive to our the trade demand through products. Upgrading of booking and pricing of Upgrading systems to facilitate transparency and flexibility and to make the accessible to the business more trade; travel The emergence of internet tour The emergence in both (operating operators and retail inbound and outbound spaces) has further the challenged in changes status quo and resulted of the industry. in the structure • • • Opportunities with four The business is presented of opportunities:main groups • Most importantly, we have affirmed have we Most importantly, our commitment to the continued playing field. of a level development will be watching these We as they with interest developments to expect this process we evolve: continue. • • • • These changes have resulted in resulted These changes have lines with a blurring of historical This poses associated uncertainty. who do not risk to operators these changes or respond recognise has The Group to them. appropriately changes and views these recognised than rather them as an opportunity, committed to the remain We a risk. pursued in the past and strategy trade partners with trade the relationships many over been established that have to these changing Our reactions years. included: have circumstances • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Firstly, depressed demand following demand following depressed Firstly, the global financial crisis forced seek new in the industry to players of business to maintainsources Wholesalers have throughput. in the retail operated increasingly ) and some space (and vice versa tended to act as inbounds have ); outbounds (and, again, vice versa use of the internet Increasing and book holidays, to research in has resulted or parts thereof, in regard transparency increasing This has to price structures. at on margins in pressure resulted of the channel; and all levels Spreading risk through operating in operating risk through Spreading of countries; and a wide range and operations Restricting to stable countries. investments Changing structure of channels to the of channels to Changing structure market the tourism industry has Historically, been clearly (if somewhat confusingly, into inbound to outsiders) structured and outbound, wholesale and retail Group Wilderness The segments. in relationships has built its trade with these structures accordance and our channel to the market can, in in simplified terms, be illustrated online appendices. C in the Figure of mentioned, the bulk As previously business has been derived the Group’s outbound of foreign a number from loosely as known tour operators specialists’. A certain amount ‘African travel retail from of business is derived is also a small direct agents and there channel to the market for products been not in the past which have African trade. supported the travel by a growing are inbound tour operators a significant channel and remain These supplier to our product. begun have structures traditional main to three in response evolving all linked to the sets of circumstances, of the internet: and penetration growth • • This risk is managed through two This risk is managed through strategies: • • in footprint is presently Our largest which are Botswana and Namibia countries in amongst the most stable Africa. Country political risk one was Zimbabwe 1990s, late the Until economically and politically most the of four to Within stable countries in Africa. the international perception years, five to of the country had deteriorated it was considered the point where one of the most unstable countries Whether this perception in the world. or not, it had the effect was accurate of collapsing demand for tourism to This country had, not much Zimbabwe. been one of the major longer before, bottom line contributors to the Group’s one of the and this collapse illustrates risks to the business: that posed by which might political developments to regions impact on demand for travel to be unstable (whether perceived or not: is accurate this perception during poor reputation Zimbabwe’s this period was not justified in terms to tourists), or for travel of any threats wars (the onset of both Iraq in general globally). travel depressed Our operations occur in remote, wild occur in remote, Our operations southern African seven places across our staff move countries. Guests and on foot and in about these areas often in boats and aircraft, vehicles, to wildlife. As a result, close proximity a number of potential safety and security risks exist for both guests and staff. and recognised These risks are Board our Safety Review managed by (SRB) the Risk by which is appointed The SRB is Committee of the Board. systems Group for overall responsible or incidents accidents to prevent to emergencies. and to respond safety programme A comprehensive and implemented has been developed and in conjunction with our insurers underwriters. Disaster and emergency been developed have plans response given All guests are practised. and are in camp and safety briefings on arrival boats and vehicles, when boarding insurance Comprehensive aircraft. is maintained. cover for a more detailed explanation of for a more they are and how these relationships managed. Safety and security Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 12 The Wilderness business continued
These opportunities are discussed Productivity improvements • Reducing the cost of acquisition; below. We have identified situations where • Productivity improvement and there is potential for improvements in cost reduction; Increasing utilisation of existing productivity which would either: • Building the balance sheet and capacity • Allow us to generate additional cash reserves; and One of the more obvious opportunities sales off the same resource and • Sustainability. for the Group is to increase utilisation cost base; of existing capacity. The bednight sales • Reduce the cost of producing and in the current year represent overall Expansion of our footprint maintaining the same level/s of bed capacity utilisation of 65% for As discussed elsewhere in this income; or the properties that we own. Although report, levels of capacity utilisation this is an improvement on the 62% • Allow us to reduce operating costs in our Botswana products are now equivalent for 2014, it is evident without impacting on service extremely high, other than in the low that there is potential for improvement. delivery or product quality. season. We also believe that price The main areas where potential levels in that market are approaching These productivity improvements can exists are: a ceiling beyond which resistance potentially derive from changing the may be felt, at least in segments • Outside of the busy season in way we do business and a number of the market. This means that the Botswana (our capacity utilisation of specific examples have already prospects for further growth out of in Botswana is very high during the been identified and are discussed in that market are limited. busy season); the narratives below. • Other countries (mainly Namibia, During the year under review we Zambia and Zimbabwe) where Gaining market share added the new Hoanib Skeleton capacity utilisation remains Over the distressed trading years Coast camp to our Namibian portfolio lower. We are particularly excited following the global financial crisis, and we also recently opened the new about the expansion potential in and in countries where demand Linkwasha camp in Hwange National Zimbabwe, as that country’s market was soft for whatever reasons, we Park, Zimbabwe. Both have been well perception improves; and steadfastly maintained our camps received by the market, with the former • Increasing load factors on our and lodges in the condition needed winning a number of awards, and aircraft. to maintain the highest levels of represent important turning points for product quality. This was done in the respective businesses: It is important to note that any growth spite of sometimes weaker financial • In the case of Hoanib Skeleton in sales we can achieve through these results and the impact of the Coast, this was our first new areas is highly financially efficient: maintenance expenditure on our development in Namibia following • It does not entail new capital bottom line. This has meant that the down-sizing of that business expenditure: the capacity is already we have maintained, if not enhanced, in the years following the global in place; and our reputation for quality and financial crisis. Excitement in • It also would not entail significant prevented any brand damage from the market created by that additional overheads. poor products. It also meant that, camp has played a major role as growth in the industry accelerated in transforming our Namibian again, or a destination has started Expansion of our footprint business during the current to recover, we have been well year; and The Group is well represented in placed to take advantage of this • Our Linkwasha development is the the major safari destinations of growth, perhaps more so than some first major new development in that southern Africa. However, it presently of our competitors. We believe country in many years and is timed has effectively no representation that this has resulted in our gaining to coincide with the improving at all in the major safari destinations market share. in east Africa (Kenya, Tanzania, market perceptions of Zimbabwe. Rwanda and Uganda) and our The opening of this camp is exposure in that region is limited to Strategy expected to result in a turnaround our marketing contract under the In view of the risks and opportunities of our Zimbabwe business, as Wilderness Collection for Segera outlined above, the business has happened with Hoanib Skeleton Retreat in Kenya. been pursuing a number of strategic Coast. imperatives: Given the enormous size of the Notwithstanding the improvements in • Expansion of our footprint; industry in those countries, and the the latter two businesses discussed iconic status of a number of their • Increasing the quality and the above, we will proceed cautiously in destinations, there is real potential relevance of the offering to both the short term in regard to further for Wilderness to make an entry and clients and guests; expansion in Zimbabwe and Namibia, investigations and discussions are • Improving low season because of the recent history in those presently underway. performance; countries. This, combined with the
14 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 15 About Wilderness Sustainability report Corporate governance Annual financial statements 15 | guests. These initiatives include a These initiatives guests. number of important technological innovations. Improving low season performance low season Improving Our business is distinctly seasonal with being generated the bulk of profits June to during the busy season from from season months The wet October. experience lower to March November therefore have We of demand. levels to adopted a number of strategies season performance, low improve and focused effortsmainly increased to sell beds during these months, season special offer including a low and a further offer to SADC residents making bookings at short notice. temporarily in the past also have We closed some camps during the to consolidate in order season low camps occupancies in the remaining and also in the aircraft. Finally, in order to measure our to measure in order Finally, of these performance as a result our reinforced have we strategies, efforts to ascertain the extent to guests’ matched our have which we must be done expectations and what this performance. to improve Above: Flying over the Okavango Delta, the Okavango Flying over Above: Botswana. Namibia. Hoanib Skeleton Coast Camp, Left: Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Development of the staff who of the staff Development the for delivering responsible are for communicating and product with our clients and guests before, during and after they visit; in the physical Investments so that product infrastructure quality is maintained; and the systems to improve Initiatives which the by and processes to clients and is delivered product of our products and servicesof our products sold to to secure clients and guests, in order and word-of- business the repeat so important that are mouth referrals This and profitability. to our growth important more wish to if we is even adopted have We gain market share. to achieve a number of strategies into the following this, falling broadly categories: • • • As discussed under Risks above, it is As discussed under Risks above, maintain the quality critical that we Increasing the quality and the relevance the quality and the relevance Increasing both clientsof the offering to and guests fact that potential for further growth that we means in Botswana is slowing, for additional need to look elsewhere opportunities.growth As noted above under Opportunities, is the Group in the major not represented presently of east safari tourism destinations for area Africa and this is an obvious further some while we expansion. For prospects been investigating have in the into that region, for investment developments form of either greenfield or acquisition of existing businesses. business the of maturity the of Because of the range in particular, in Kenya opportunities for the former is limited. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 14 The Wilderness business continued
Reducing the cost of acquisition • Significant investments have been business will not be truly sustainable The business incurs a number of made in solar energy systems in unless it specifically addresses issues costs in the process of making sales our camps. These investments arising under the dimensions of and booking itineraries. These costs have reduced our carbon footprint Commerce, Conservation, Community include those related to our staff and and the risks associated with and Culture (the 4Cs). We believe processes involved in making sales, transporting and handling diesel that this framework is the most as well as margins granted to trade fuel in the Okavango Delta. More appropriate sustainability model for partners, and combined they result importantly, they have had the our industry and accordingly our Vision in a sometimes significant difference effect of significantly reducing and Values are all aligned to these Cs. between the price paid by our guest diesel consumption in these camps Our strategic plan is based upon this and the revenue eventually derived by and the effects of this are being felt platform and a set of outcomes have our business. We term this difference in the income statement. been developed for each C. These our ‘cost of acquisition’. Significant outcomes have then been extended The possibility of adding further gains will trickle down to the bottom into the actions that are required to revenue to the existing cost base is line if we can reduce this cost of ensure their achievement. an obvious additional strategy and acquisition and we have implemented expansion opportunities are being a number of initiatives to achieve this, Managing and implementing the 4Cs investigated. including: Our structure for managing and • Efforts to improve our own implementing the 4Cs is given in Building the balance sheet and cash productivity, through improved the diagram alongside. The Group’s reserves systems and processes (including sustainability policies and strategies a new online booking and In order to capitalise on opportunities are directed and overseen by the reservations platform), used in and minimise the risks, we need a Sustainability Committee of the Board making sales; strong balance sheet. We also need of Directors. The Chief Sustainability the resources to explore consolidation Officer (CSO) is responsible to the • Increased incentives to high and/or expansion opportunities, as CEO for development and execution yielding trade partners and well as to weather any difficult times of these policies and strategies. reduced incentives to lower that might arise in the years ahead. The CSO is a member of the Board. The yielding partners; and These dual goals are a strategic priority CSO is assisted in the development • Strict control to ensure that price of the business and, as will be seen and implementation of strategy by a concessions given are warranted from the results, we have made much Sustainability Executive Committee. and reasonable. progress. Our balance sheet is sound and, more importantly, we also have Day-to-day implementation of the Productivity improvement and cost significant cash reserves which make Group’s sustainability strategies reduction us well placed to capitalise on any is the responsibility of the country In the trying times following the global opportunities that do arise. Managing Directors and is carried out financial crisis, cost reduction was a by the operational staff in the camps real focus. Much was achieved without Sustainability and other operational units. These impacting negatively on product quality staff are responsible for the ongoing Sustainability is a strategic imperative or guest experience. As mentioned monitoring and measurement of the in a number of respects. In the first above, all of our guest facilities are various sustainability indicators. Their instance, sustainability is critical to fully maintained. Further opportunities activities are overseen, directed and our conservation vertical. Secondly, for cost reduction continue to be coordinated by a sustainability officer a number of sustainability initiatives pursued, where they still exist. in each country. At the same time, have important financial or commercial However, we recognise that risks exist ‘thematic’ oversight is given by a ‘C benefits through cost savings. Finally, in excess cost reduction measures Coordinator’ at Group level. These and most importantly, we see this as because of the potential to undermine coordinators provide advice an opportunity to differentiate the product quality. For this reason, our to the operational level structures organisation and its products from focus has switched to the search for and consolidate the activities at our competitors. For these reasons, productivity improvements either Group level. we are aggressively pursuing the from reorganising the business and its sustainability imperative. processes, or from economies of scale. Important examples of these measures include: The 4Cs • Our flying business has been The 4Cs is the platform upon which reorganised and now operates our sustainability initiatives are based. as circuits which are designed to This concept is adopted from The Long increase load factors on aircraft; Run Initiative (www.thelongrun.com) and and is predicated on the belief that a
16 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 17 About Wilderness Sustainability report Corporate governance Annual financial statements 17
| Culture Culture Manager Conservation MD Collection STAFF (EMSBiodiversity) & best people. day-to-day life. and our equivalent and our equivalent Community Many of our staff are Many of our staff are the brightest and the the brightest and the value systems enable systems enable value all other aspects of in all other aspects of and responsible living living and responsible themselves personally personally themselves and maintain a culture and maintain a culture sustainability, not only not only sustainability, us to attract and retain and retain us to attract within our organisation within our organisation within our business but within our business but We endeavour to create to create endeavour We that values and promotes and promotes that values committed to biodiversity committed to biodiversity MD Conservation Culture Manager Manager South Africa Conservation Community & (EMSBiodiversity) & Commerce Community are maximised. are Committee COMMITMENT citizen, it is our duty to it is our duty to citizen, Sustainability ensure that any negative that any negative ensure and any positive impacts impacts and any positive operations are minimised, minimised, are operations impacts resulting from our our from impacts resulting As a responsible corporate corporate responsible a As Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Culture Manager Manager
MD Zambezi Conservation Community & (EMSBiodiversity) & Chief Officer ENERGY Board of Board Directors Executive Executive Conservation result in significant in significant result For example and as example and as For reductions in diesel in diesel reductions COMMUNITIES in our operating costs. in our operating business performance. business performance. thus result in improved in improved thus result further in this discussed initiatives have importanthave initiatives report, our investments in report, in our investments Many of our sustainability Many of our sustainability efficiency by-products and and by-products efficiency renewable energy supplies supplies energy renewable consumption and therefore consumption and therefore Culture Manager Manager MD Namibia Conservation Community & (EMSBiodiversity) & GUESTS it is important to Culture surrounding rural communities and to this end our fair and equitable engagement of these equitable engagement of these communities and to this end our fair and rural surrounding Manager Manager of our sustainability of our sustainability The health of ecosystems in modern Africa is to a large extent dependent on the goodwill of on the goodwill of extent dependent modern Africa is to a large The health of ecosystems in gaining market share. Commerce commitments, and the commitments, and the enhance our reputation enhance our reputation and this will result in us in us and this will result partners and our business. areas of both protected is a critical component of the sustainability In this day of discerning In this day of discerning Conservation from our competitors and our competitors and from Community & the sincerity the sincerity demonstrate actions arising therefrom. actions arising therefrom. If this can be achieved, we we If this can be achieved, MD Botswana will differentiate ourselves ourselves will differentiate and responsible travellers, travellers, and responsible (EMSBiodiversity) & Chief of the business. of our business. of our business. Officer to biodiversity and and to biodiversity would reduce their their would reduce species that are the the species that are from our operations our operations from ECOSYSTEMS the competitiveness the competitiveness the attractiveness of of the attractiveness species will increase species will increase Sustainability (4Cs) management structure Our sustainability objectives sustainability the ensuring to committed is Group Wilderness The reflects and DNA our of part is commitment This operations. our of are: which of important most the objectives, and aims of number a and thus the success and thus the success of the ecosystems and of the ecosystems and depends on the health depends on the health our tourism operations our tourism operations attractiveness and thus and thus attractiveness Any negative impacts on impacts on Any negative Coordinators Firstly, this is enlightened this is enlightened Firstly, the environment resulting resulting the environment attractions for our guests. our guests. for attractions Sustainability Conversely, improvements improvements Conversely, self-interest. Our business Our business self-interest. Figure 6: Our sustainability objectives Figure Figure 7: Sustainability (4Cs) management structure Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 16 The Wilderness business continued
Stakeholders can be (at the same time) employees, can be considered internal or external landlords and neighbours. Wilderness is to Wilderness. Figure 8 alongside The Wilderness Group engages with committed to providing timely, accurate, illustrates the rather complex network a complex ‘universe’ of stakeholders. transparent and full disclosure to all of stakeholders with whom we engage Engagement with these stakeholders relevant stakeholders on both financial and the nature of the engagement. varies according to the nature of the and non-financial matters. Stakeholders stakeholders and their expectations are identified as those groups that have Some of the more material stakeholder and concerns. Some parties fall into a significant influence on our business engagements that have occurred during more than one stakeholder group: for or those on which our business has a the year are outlined in the table below: example, members of local communities significant impact. These influences
Table 1: Important stakeholder engagements during the year
Issue Stakeholder/s Discussion Zimbabwe Zimbabwe Our camp operating business in Zimbabwe has for some time been 50% owned by indigenisation Government, local indigenous partners. In 2011, the Group reached agreement with the Government shareholders of Zimbabwe to indigenise 30% of the whole business in accordance with the regulations. Our partners to achieve this, over and above those already involved, have been identified and agreement on the parameters reached. This agreement will be effective in the 2016 financial year. Botswana Botswana A number of our concessions in Botswana have expired. Most notably, these concessions Government, concern Mombo, Xigera, Vumbura Plains and Little Vumbura camps. These Okavango concessions have not yet been renewed as the Botswana Government is changing Community Trust the systems for allocation and administration of tourism concessions. We have been given authority to continue operating these concessions in the interim and are confident that they will be re-allocated to us in due course. Aircraft fleet Financiers, suppliers, During the year, the Board approved proposals to upgrade our aircraft fleet. upgrade guests and This entails purchase of up to 10 aircraft, at a cost of US$12.6 million (offset to a customers small degree by proceeds on sale of older aircraft), over a three-year period. This is intended to improve the quality, reliability and efficiency of our aircraft fleet. During the year we engaged with potential suppliers and financiers in order to settle on the initial phases of this plan which entail purchase of the first seven new aircraft, and to secure the necessary financing. Share plan Staff, Botswana and The first performance share allocations under the Wilderness Group Share Plan Johannesburg Stock 2011 vested during the year. The mechanisms by which these obligations were Exchanges settled were discussed and agreed with the relevant stock exchanges, as well as with the staff concerned. Sale of Pafuri Makuleke Communal Our Pafuri camp in the Makuleke region of Kruger National Park was largely camp Property Association, destroyed by flooding early in January 2013. During this financial year we engaged insurers, potential with the community to discuss options for the future and eventually agreed to buyers withdraw from the concession. We then engaged with a number of potential buyers for our assets on site and exited from the concession effective 1 September 2014, although we did continue operating walking trails in the concession until the end of the financial year. Sale of Malawi Fellow shareholders During the year we sold our 50% share in the Malawi business, Central African business Wilderness Safaris Limited. This process entailed negotiations and the reaching of agreement with our fellow shareholders who acquired our equity stake from us. East Africa East African As noted above, we have been investigating options for investment in the broader expansion governments, East African region. This has entailed ascertaining demand for products in that potential sellers and/ region, understanding the investment and operating climates in each country, and or partners, trade identifying and investigating options for making such investment. partners Ebola Trade partners, As noted above, the outbreak of Ebola that occurred in West Africa in August 2014 guests, travel and had the effect of depressing demand for travel to Africa as a whole. This impacted other media our business in spite of the fact that the outbreak was far remote from any of our operations. In response to this, we have engaged in lengthy discussions with our trade partners in an effort to mitigate the impacts on our business and, inter alia, we changed our cancellation terms in order to reassure the market. We also engaged, along with other members of the industry, in efforts to educate the media and consumers in regard to the realities of the disease and the very low risks posed by travel to the countries in which we operate.
18 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 19 About Wilderness Sustainability report Corporate governance Annual financial statements 19 | Academic researchers Media NGOs development. journalists and other media Regular communication with Regular brand and corporate updates. and corporate brand groups is essential for product, is essential for product, groups with which we engage, with which we are maintained with NGOs maintained with are generally for the purposes of generally conservation and community conservation Open lines of communication Government permits and staff development. and fees, community relations, work and fees, community relations, EXTERNAL INFLUENCES revolving around national tourism policy national tourism around revolving Frequent engagement is maintained with Frequent the governments in the eight countries in in the eight countries the governments and marketing, conservation management and marketing, conservation which we operate, with typical discussions discussions typical with operate, we which Suppliers
Frequent engagement is Frequent Integrated Annual Report 2015 Holdings Limited Integrated Wilderness goods and services, to ensure of suppliers, predominantly for of suppliers, predominantly maintained with a vast number maintained with a vast timely distribution to our camps. Landlords* Guests Community chapter. Consumers Trade partners Trade are discussed in the introduction to the discussed in the introduction are with daily, and any issues raised are dealt are and any issues raised with daily, and operator of choice. Trade partners are Trade of choice. and operator These groups of stakeholders are engaged of stakeholders are These groups Our efforts to maintain product quality, and Our efforts quality, to maintain product with comprehensively, in order to sustain and in order with comprehensively, grow Wilderness propertiesWilderness as the destination grow intermediaries or agents in the travel trade who trade intermediaries or agents in the travel promote and sell our brand to paying guests, who and sell our brand promote are in turn engaged with at the camps themselves.are therefore sound relations with these stakeholders,these with relations sound therefore
Communities as well as regularly as well External Community chapter. and more detail can be found in theand more and communities that surround our and communities that surround with this group of stakeholders is vitalwith this group Staff This is a broad stakeholder group made stakeholder group This is a broad operational areas. Ongoing engagement areas. operational up of staff members, community partners, INTERNAL INFLUENCES transparent manner. transparent olders Shareh Community chapter. the Group’s investor website investor the Group’s and a response provided in a provided and a response (www.wilderness-holdings.com), (www.wilderness-holdings.com), can be found in the Internal during an AGM Shareholders are engaged annually are Shareholders staff feedback sessions. More staff feedback sessions. More formal engagements provided formal engagements provided sustainable return for our landlords. for sustainable return Regular engagement through formal engagement through Regular through various announcements and various through private individuals are our landlords. our landlords. individuals are private where all topics raised are considered are all topics raised where through performance reviews or performance reviews through the directors to all staff with more to all staff with more the directors * Communities, governments and some * Communities, governments detail regarding staff engagement detail regarding lease arrangements and ensure greatest and ensure lease arrangements An open door policy is promoted by An open door policy is promoted is essential and allows us to maintain our is essential and allows contract meetings and informal discussions meetings and contract Wilderness’ stakeholder universe stakeholder Wilderness’ Figure 8: Wilderness’ stakeholder universe Wilderness’ 8: Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 18 Board of Directors
Ami qualified as a Chartered Accountant in 2001 with product on six continents. and subsequently completed his Higher Diploma At the company he has developed industry in Advanced Taxation, he was previously a leading marketing, e-strategy and product partner at an audit firm and joined the Group in delivery initiatives. He is also a Senior Executive 2008 and he brings both technical and tourism of the Travel Corporation responsible for the related experience to the Board. company’s southern Africa assets as well as the Managing Director of World’s Leading Travel Companies Limited where he oversees their United Kingdom direct sell division.
Parks Tafa (48) Non-executive Director Chairman of the Board Appointed: 8 April 2010 Qualifications: LLB, University of Botswana Directorships: Wilderness Holdings Limited, (55) Collins Newman & Co (Partner) Derek de la Harpe Executive Director Parks is currently the Managing Partner of Collins Newman Co Law Firm and the former Commercial Director and Chief Sustainability (61) Officer Malcolm McCulloch non-executive Chairman of Stanbic Bank Limited Independent non-executive Director and University of Botswana. He is an Attorney, Appointed: 8 April 2010 Conveyancer and Notary Public of the High Court Qualifications: Bachelor of Accounting Science Chairman of the Risk Committee of Botswana since November 1991. (UNISA), Chartered Accountant (Zimbabwe) Appointed Chairman of the Audit Committee on Directorships: Wilderness Holdings Limited, 20 May 2015 Wilderness Holdings subsidiaries Appointed: 18 August 2005 Derek is a Chartered Accountant (Zimbabwe) Qualifications: BCom (Hons), Chartered with 33 years’ experience in southern and Accountant (South Africa) eastern Africa. He spent 18 years with the then Directorships: Wilderness Holdings Limited, Price Waterhouse, the last eight as the partner Wilderness Holdings subsidiaries and Children in in charge of the firm’s practice specialising in the Wilderness tourism and environmental consulting. He then Malcolm is a Chartered Accountant who spent eight years as the CEO of The Malilangwe studied at the University of Cape Town, Trust, a Zimbabwean NGO working in wildlife and subsequently completed an Advanced conservation and rural development, and with Management Programme at Wharton, the a high profile tourism operation. He spent four University of Pennsylvania, USA. He has been years working as a freelance management involved with the Wilderness Group since 1992. consultant in southern and eastern Africa, south- Keith Vincent (52) east Asia and central America, specialising in the Executive Director tourism development and wildlife conservation Chief Executive Officer and a member of the interface. He joined Wilderness as CFO early in Risk Committee 2010 and is now Commercial Director and Chief Sustainability Officer. Appointed: 18 August 2005 Directorships: Wilderness Holdings Limited, Wilderness Holdings subsidiaries Keith was educated in Zimbabwe, where he developed a love for the outdoors and natural history of the country. He became a professional guide, working throughout the country for various safari companies, before settling in Victoria Falls in 1984. Keith has been in the Rolf Hartmann (41) safari industry since 1980, working throughout Independent non-executive Director southern Africa. Keith has been involved with the Wilderness Group since 1993. Chairman of the Audit Committee, Chairman of the Remuneration and Nomination Committee and member of the Risk Committee Gavin Tollman (51) Appointed: 8 April 2010 Non-executive Director Resigned: 20 May 2015 Member of the Investment Committee Qualifications: BCom (Hons), University of the Appointed: 8 April 2010 Witwatersrand, Chartered Accountant (South Africa) Qualifications: BSc Finance, The American University, Washington DC Directorships: Brait South Africa Limited, Wilderness Holdings Limited, Nature’s Choice Directorships: Wilderness Holdings Limited, Holdings Proprietary Limited, Premier Group Insight Travel Group Limited, Busabout Proprietary Limited and Premier Swazi Bakeries Operations Limited, Contiki Tours International Proprietary Limited Limited, Grand European Operations Limited, Trafalgar Tours International Limited, Wine Rolf joined the Group in 2007 as a director of Ami Azoulay (41) Investments Limited, Tracon Real Estate Limited, Wilderness Safaris Investment and Finance TravCorp Investments Limited, TTC Travel Group Proprietary Limited. Rolf joined Brait in 2003 Executive Director Limited, AAT Kings Tours International Limited, and his responsibilities include executive Chief Financial Officer Uniworld International Holdings Limited, Nevis: responsibility for several of its investments, Appointed: 24 January 2014 Brendan International Holdings Limited, Cullinan among other matters. He is a Non-executive Director of a number of privately held Qualifications: Chartered Accountant (South Holdings Limited, and various subsidiaries of the companies and was previously a Non-executive Africa), Higher Diploma in Taxation (UJ) above. Director of Kelly Group Limited, a company Directorships: Cullinan Holdings Limited, Gavin has had a far-reaching executive career in listed on the JSE Limited. Rolf is a Chartered Wilderness Holdings Limited, Wilderness the travel industry. This has included managing Accountant, and previously worked in corporate Holdings subsidiaries both hotel companies and tour operators, which finance in London, after qualifying at Deloitte. have received various industry awards and recognition. He currently is the CEO of Trafalgar Tours, the world’s largest escorted tours operator,
20 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 21 About Wilderness Sustainability report Corporate governance Annual financial statements 21 | (53) (37) (37) Marcus ter Haar Marcus Director Independent non-executive Member of the Audit and Investment Committees Appointed: 8 April 2010 Qualifications: BA (Hons) Development of East Anglia, MA (Reading) University Studies, Diploma Finance International Relations, Holdings Limited Wilderness :Directorships a BA (Hons) in Economic received Marcus of East Anglia the University from Development in the UK, in International and a Masters degree UK. of Reading, the University from Relations on to join De Beers on a then went Marcus In 2005 he programme. development graduate CEO Assistant to the was appointed the Executive After a short secondmentof the De Beers Group. then moved with NM in 2007, Marcus Rothschild he worked for Debswana asto Botswana where He Manager for Business Development. the Group been appointed as the Head of Saleshas recently Company Botswana, a Trading for the Diamond De Beers and the between 50:50 joint venture also currently Marcus Botswana Government. of the Lady Trustees of serves on the Board Trust. Khama Charitable Michael Tollman Tollman Michael Director Independent non-executive Deputy Chairman and a member of the Audit and Risk Committees. Appointed Chairman of Committee and Nomination the Remuneration with effect 20 May 2015 Appointed: 8 April 2010 Qualifications: BCom (Hons), Chartered Accountant (South Africa) Limited, Holdings Wilderness :Directorships Travel The Carnations, Cullinan Holdings, Red Limited, Contiki Holidays Limited,Corporation Limited, Cullinan Holdings Limited Tours Trafalgar subsidiaries of the above and various of Michael was appointed to the Board and Finance Safaris Investment Wilderness Wilderness Limited in 2005, of Proprietary Holdings Limited on its listing on the Botswana Exchange Deputy and appointed Stock Holdings in April Wilderness Chairman of experience in the 2013. He has extensive of in the areas industry, and leisure travel mergers sector, and leisure finance, the travel and acquisitions. He has served as Executive Officer of Chairman and acting Chief Executive Cullinan Holdings Limited, the leading travel 2009. company since March and leisure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness (41) (41) (70) Charles de Fleurieu Director Non-executive Committee Chairman of the Investment 2012 Appointed: 1 November College London, King’s Qualifications: LLB from Panthéon- the Université Masters in Law from qualified Solicitor in England Sorbonne in Paris, Wales and Holdings Limited Wilderness :Directorships Charles started with as a lawyer his career the American law firms Coudert and Brothers 1996 to 2005 in from Kilpatrick Stockton, and England States China, the United France, transactions he worked on cross-border where and He then switched to corporate and projects. France acquisitions at and finance and mergers Group, and Kering Group Telecom/Orange & Acquisition. he was Head of Mergers where he is starting where Tokyo, based in He is now business. new eyewear Group’s up Kering of experience in than 19 years He has more with an expertisebusiness development, in law, operations. finance, and now Roux Marnitz Director Independent non-executive and a member of Director Independent Lead and Nomination the Risk and Remuneration Committees. Chairman of the Safety Review Board Appointed: 8 April 2010 Qualifications: BSc (Eng), MBA, BProc Limited. Holdings Wilderness :Directorships Company Proprietary Namibia: Southern Energy Proprietary Limited, SEC Products Aviation Limited Proprietary Centre Limited, Aviation of studied engineering at the University Roux in 1967. In 1970 he graduated where Pretoria an MBA university the same he was awarded by UNISA from degree and obtained the BProc in Pilot’s Transport 1976. He also holds an Airline is the former chairman of the Licence. Roux Holdings Limited, Comparex JSE-listed group, IT Aviation former chairman of the Execujet former Member of the Council of the Group, a director and is presently of Pretoria University companies in Botswana investment of private and Namibia. (52) (60) John Hunt Hunt John Director Independent non-executive Member of the Sustainability Committee Appointed a member of the Remuneration and Nomination Committee with effect from 20 May 2015 Appointed: 8 April 2010 Holdings Limited Wilderness :Directorships Hunt John co-founded the advertising group was Lascaris in 1983. In 1996 a majority share TBWA and he became Co-Chairman. sold to to assume York to New In 2003, John moved for Director Creative Worldwide of the role to South Africa TBWA. In 2006 he returned John he continues in the same capacity. where TBWA Committee member of is an Executive Worldwide. Jochen Zeitz Jochen Zeitz Director Independent non-executive Chairman of the Sustainability Committee Appointed: 8 April 2010 in BusinessQualifications: Degree Administration Limited Holdings Wilderness :Directorships USA: Harley-Davidson Kering France: and of Kering Director is currently Jochen Zeitz sustainable development Chairman of the board’s The and Co-Chair of committee and Co-Founder after having been the CEO of the Sport & Team B Lifestyle division and Chief Sustainability Officer served to this, Zeitz since 2010. Prior of Kering as Chairman and CEO at PUMA.18 years Upon turned it in 1993, Zeitz CEO becoming PUMA’s nearing bankruptcy into brand an undesired from the sporting in brands one of the top three good in contributing to a new He believes industry. and environmental social of corporate paradigm the Zeitz In 2008, he founded sustainability. Safety Ecosphere for Intercultural Foundation to support sustainable solutions that balance culture, community development, conservation, has been a member of Zeitz and commerce. of Harley-Davidson since of Directors the Board 2007 and has also served as the Chair of Harley- sustainability committee since its Davidson’s inception in 2011. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 20 Aitse go tsamaya ke go bôna To travel is to see and understand
“It is our vision and the underlying blueprint and values that keep us progressing. It is also this environment of purpose that … perhaps most impressively … also ensured that in the midst of the so-called Ebola hangover we managed to help facilitate the largest ever cross-boundary move of Critically Endangered black rhino from South Africa and Zimbabwe into Botswana’s Okavango Delta, in so doing making a major contribution to the long-term conservation of this species so under siege
Parks Tafa, Chairman currently from poaching and wildlife crime.”
March 2014: June 2014: Awards Desert Rhino Wilderness Holdings Camp – AFAR Integrated Report – Media Experiential 6th best in the world Travel Award for in the Corporate Best Walking Trip: Register Reporting Namibia. Awards (CRRA).
22 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 23 About Wilderness Sustainability report Corporate governance Annual financial statements 23 |
Of course not every country provides country provides Of course not every for viable the right set of circumstances and not every ecotourism businesses, for our own situation is appropriate can’t We particular of ecotourism. brand and certainlydo everything, can never doing sustainability by risk our own committed remain Nonetheless, we so. on the about expansion (and excited) continually seeking continent and are new opportunities the world to expose wilderness and wildlifeto exceptional areas. The Rwanda expansion is a case in in thepoint. No less than six years that our believe really making, we country into this inspirational venture ecotourism, is going to revolutionise on can have impact it and the positive the across and community, conservation in building not interested are We region. lodges and camps just to create to achieve to strive have We businesses. In Rwanda this is than this. more and the expansion about reforestation restricted of habitats for the range endemic species of the Albertine Rift. It is also about the continent’s population density and highest rural This is sustainable land utilisation. no short-term commitment but one satisfaction in will take great which we of. monitoring the progress for this the results of I am proud about theyear and excited financial – both immediate and medium future to my as always Thank you term. for their supportBoard and wisdom, staffWilderness and to the entire – your all countries and regions across commitment to our cause and your organisation our for enthusiasm endless both humbling and inspiring. are a specific thanks to Finally, Hartmann ourRolf who leaves after nearly a decade of Board committed and selfless service. made a huge you Rolf, Thank you to our discipline and difference decision-making. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness September 2014: September Mombo Camp – Award Travel World for Botswana’s Tented Leading Safari Camp. doesn’t have. These are our competitive our competitive These are have. doesn’t cannot miss the and we advantages opportunity us to that Ebola has given world aboutcontinue to educate the and why it is have we what are, who we and the planet at large. to them relevant underlyingIt is our vision and the keep us that blueprint and values It is also this environment progressing. and Keith of purpose that has allowed to the challenges his team to respond of Ebola and other impediments and the business continued that to ensure importantlyto perform. More it has which has a framework provided enabled us to announce expansions into Rwanda and to adapt some of the key aspects of our business to changing most Perhaps economic environments. that in the also ensured it impressively, midst of the so-called Ebola hangover managed to help facilitate thewe move cross-boundary ever largest black rhino of Critically Endangered into and Zimbabwe South Africa from Delta, in so doing Okavango Botswana’s making a major contribution to the of this specieslong-term conservation poaching from so under siege currently and wildlife crime. leading Our vision is to be Africa’s creating ecotourism organisation, to life-changing journeys in order build sustainable conservation positive economies and inspire do is no doubt that we There action. life-changing journeys, build create economiessustainable conservation action, and in my positive and inspire are that we bolder moments I believe leading ecotourism indeed Africa’s This is no time to sit on organisation. bewill we 2016 of As though. laurels our in lodges and safari circuits operating The other nearly eight African countries. 50 countries on the continent all have – whether unique attractions their own in the form of specific species or wildlife phenomena, landscapes or cultures. pertinentlyMore are these attractions need of and urgent often in desperate support,sustainable supportof kind the that viable ecotourism businesses can help to provide. July 2014: Safaris Wilderness – 4th best Safari in the Operator in the US World + Leisure Travel Best World’s Awards. This traditional Setswana proverb, still Setswana proverb, This traditional is today, in common usage in Botswana common one that talks to the culturally and see notion of needing to travel understanding really new places before these newthem, and in fact applying to understandings and perspectives with set of circumstances own one’s that has It is a proverb new eyes. in other languages of the equivalents as Shona in Zimbabwe such subregion chirimurutsoka) and isiZulu in (chitsva South Africa (ukuhamba ukubona). of the tragic It is a pity that in the throes Ebola outbreak and unprecedented Africa during the West isolated in upper in course of 2014, potential travellers markets in the northernour key source and to chose not to travel hemisphere pity that those greater see. It is an even who had the benefit of having travelled to our continent and having some extent andunderstanding of its size, than the softer voices had geography The media. sensationalist mainstream disservice caused a great hype resulting to ecotourism – and thus conservation – in and community empowerment at east and southern Africa; regions the Ebola distances from considerable suspected with not even and epicentre instances of Ebola transmission. to is a positive Nonetheless, if there epidemic it is that the world’s last year’s consciousness and understanding of dramatically. the continent has grown so – that promised if our results Even Ebola dominated the news much before – September last year headlines from if some of the impacted, and even were propagated of Africa were stereotypes further is no doubt that afield, there to the continent potential travellers Africa is, that it is where know now than 50 countries comprised of more and varied! diverse and that it is vast, than is so much to Africa – more There 1 000 mammal species, 2 000 language despite and, ancient cultures groups, populations, still a sense of growing space, wilderness, intact ecosystems and extant communities of mega- of the world simply fauna that the rest Chairman’s letter Chairman’s Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 22 It’s Africa’s time
“Despite the uncertainty experienced in the African tourism industry over the past year due to the Ebola hangover lasting longer than anticipated, I am pleased with our strong results and the continued growth of our pioneering ecotourism initiatives. I am extremely proud of my team and our collaborative efforts to reorganise the business over the past two years, providing the Wilderness Group with a solid foundation from which to expand our ecotourism footprint into other African regions. We are thrilled to announce our plans to build two new camps in Rwanda in 2016 and look forward to pursuing other exciting ventures in line with our Keith Vincent, CEO 4Cs ethos (Commerce, Conservation, Community and Culture). We are well placed for the next chapter – it’s now Africa’s time.”
September 2014: September 2014: Awards North Island – North Island – World Travel Award 3rd best in the for the Indian 2014 Condé Nast Ocean’s Leading Traveller Readers’ Green resort. Awards.
24 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 25 About Wilderness Sustainability report Corporate governance Annual financial statements 25 | November 2014: November Hoanib Skeleton Won Coast Camp – the Out of this category in World Travel Tatler the Awards. creating life-changing journeys in order life-changing journeys in order creating to build sustainable conservation action, positive economies and inspire placed is well Group Wilderness the that offer to expand into new regions authentic ecotourism opportunities. to launch proud genuinely are We and to beginour Rwandan business lodges dueconstruction of two new The opportunityto open in 2016. to use our tried and tested model of to contribute to ecotourism responsible and community conservation positive in such a unique and empowerment is exactly why we environment exciting will also continue to We do. do what we other potential negotiate with various partners to further our increase footprint on the continent. conservation and expansion In addition to growth will continue we plans into new regions, existing to maintain and refurbish camps and other assets in our portfolio leading Africa’s remain we to ensure Plans are ecotourism organisation. new camps in two underway to develop as well Botswana and one in Zimbabwe, aircraft as to embark on a three-year to guarantee programme replacement our guests with the provide that we safest and most comfortable flying Air. Wilderness experience through committed to will also remain We our our 4Cs ethos and to reducing dependence on fossil fuels through further in solar energy investments in our camps, aiming to eventually in our carbon neutrality achieve business. operational I would like to thank our staff for their ongoing commitment and effortsextraordinary during this time as to all as well of reorganisation, our partners, and local shareholders for their continued governments support and enthusiasm to support the philosophy. Wilderness and team on board a strong have We is in the best of hands to the Group agenda for our conservation drive Africa forward.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness November 2014: November in the Children won Wilderness the PURE Award for Community Engagement. With the imminent opening of the new the imminent opening With International Airport Falls Victoria of international and the resurgence our Zimbabwean country, in the interest for great business is positioned delighted were We potential growth. Campto launch the new Linkwasha offering thein Hwange in May 2015, available of luxury now highest level also continued have We in the Park. our Botswana refurbish to extensively camps and to make a significant in solar energy. investment focused we the year, Throughout business on consolidating our core foundation for a solid to ensure opportunities. growth In this future and ended our operating we regard, for Odzala marketing agreement of Camps in the Republic Wilderness Congo, disposed of our investment in the Malawian business, and sold of my team I am proud Camp. Pafuri and for facilitating smooth handovers offering ongoing support to ensure engagementcontinued conservation most vitally through in these regions, in the latterWilderness in the Children two cases. C and a the Commerce Without unable are successful business, we to stimulate change, but it is the Community andConservation, of Cs that I am most proud Culture continued to pioneer as we this year in partnership projects withvarious and Trust Wildlife Wilderness the MostWilderness. in the Children our ongoing Botswana Rhino notably, new reached Project Conservation of another relocation heights with yet both black and white rhino to a safe in Botswana, in collaboration haven with the Botswana, South African and Nearly 1% Governments. Zimbabwean black rhino of the continent’s been resettled population has now joint in Botswana in this remarkable effort.conservation Future prospects Future In line with our vision to be Africa’s leading ecotourism organisation, October 2014: Mombo & Little Mombo, King’s and Little Pool – Listed Vumbura in the Condé Nast Readers’ Traveller Choice Awards. Chief ExecutiveChief letter Officer’s Performance overviewPerformance West of Ebola in the outbreak With SafarisWilderness 2014, Africa in March of joint campaigns embarked on a range partnerswith our trade to dispel the the virus and to educate myths around travellers our guests and potential distances involved about the vast the affected countries andbetween operate. those in which we experienced few Although we cancellations of existing bookings the at the onset of the outbreak, impact of Ebola was seen in our fourth quarter have we and results our marketing increased therefore We and sales efforts in this regard. that the however, positive, remain the Ebola from industry is recovering to see an increase and hope hangover our major source in bookings from markets, including the USA, UK in the coming months. and Europe, The potential for business from markets is still on the rise, emerging working with a PR now are and we company in and sales representation business from future to drive Brazil Latin America. quarters The first three showed and all geographical growth positive segments (namely Botswana, Namibia, South Africa and the Zambezi region reporting a financial from perspective) operational reported an improved of performance. Due to the closure loss-making camps and improved pleased that service were we levels, Namibia contributed 11% of segmental Our year. to 2% last compared profit new Hoanib Skeleton Coast Camp Kaokoveld remote opened in Namibia’s in August 2014 and has already international recognition, received including being listed in both the UK 2015 Traveller’s and USA Condé Nast best new Hot Lists of the world’s hotels. It is significant that a small, camp in the 100% solar-powered middle of the Namib Desert reap can accolades, and is a such prestigious testament to our 4Cs model that this is a sustainable way to do business. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 24 Main: Tree climbing lion, Kafue, Zambia. Right: Food, North Island, Seychelles. Above: View from Vumbura Plains villa, Botswana. Top right: Solar installation, DumaTau Camp, Botswana.
26 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 27 About Wilderness Sustainability report Corporate governance Annual financial statements 27 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness External community Internal community Environmental management systems Environmental Biodiversity Culture – Community – – Commerce Conservation – 76
50
34 28 Sustainability report Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 26 COMMERCE
The Commerce C gives us the resources to make the interventions under the other three Cs. Without a viable business model, we cannot justify investing in the areas in which we operate. By the same token, even if there is a viable business model we cannot justify an investment that does not address the other three Cs.
28 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 29 About Wilderness About Sustainability report Corporate governance Annual financial statements
Linkwasha Camp, Zimbabwe.
28 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 29 Commerce
Table 2: Value added statement (for the year ended 28 February 2015)
2015 2014 P’000 % P’000 %
Revenue 944 586 843 288 Cost of goods and services (442 838) (420 057) Wealth created by trading operations 501 748 423 231 Finance income 2 501 1 279 Profit on disposal of assets 7 056 17 200 Total wealth created 511 305 100.0 441 710 100.0
Distributed as follows: Employees Benefits and remuneration 309 952 60.6 289 509 65.5 Governments Current taxation 32 463 6.3 29 031 6.6 Providers of capital 30 208 5.9 18 028 4.1 Finance charges 7 108 1.4 8 788 2.0 Dividends to shareholders 23 100 4.5 9 240 2.1 Retained for growth 138 682 27.2 105 142 23.8 Depreciation and amortisation 55 896 10.9 50 093 11.3 Impairments 10 175 2.0 8 902 2.0 Profit for the year attributable to shareholders of the Company 72 611 14.3 46 147 10.5
511 305 100.0 441 710 100.0
Key performance indicators (KPIs)
Up 12% Up 20% Up 57% Revenue: Increased to EBITDA: Increased to Profit after tax: Increased P945 million from P182 million from to P76 million from P843 million in prior year P151 million in prior year P48 million in prior year
Up 65% Down 29% UP 102% Occupancy: Increased Cash generated by HEPS: Increased to to 65% from 62% in operations: Declined to 32 thebe per share from prior year P131 million from 16 thebe per share in P184 million prior year
Financial performance Further information is included under “Changes in accounting policies” on The Group has elected to early adopt page 115. The adoption of IFRS 15 IFRS 15 Revenue from Contracts with resulted in a reduction in revenue and Customers, we believe this provides cost of sales of P561 million in 2015 a more meaningful representation of against P558 million in the prior year. our business as it takes into account There was no impact on profit. only revenue that is generated by businesses owned by the Group.
30 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 31 About Wilderness Sustainability report Corporate governance Annual financial statements 31 | P8.3 million in share-based payments payments P8.3 million in share-based 3% of the by The weakening charges. and the Namibian South African Rand Pula Dollar against the Botswana to in a benefit on conversion resulted reported our Pula results. segments reportedAll geographical performance, operational an improved 11% of contributing with Namibia now the in 2% to compared profit segmental of loss-making The closure prior year. service and a levels camps, improved of the Namibian Dollar depreciation Integrated Annual Report 2015 Holdings Limited Integrated Wilderness movement contributed approximately contributed approximately movement growth. 5% of the revenue 1% to by has decreased margin Gross contribution of greater 68% as a result Namibian the lower-margin by business. from EBITDA has improved margin 17.9% to 19.2% with operating increase contained at 5% costs well bednights, in available despite growth in information continued investment of 35% to technology and an increase On a restated basis revenue grew by by grew basis revenue On a restated sold 12% to P945 million. Bednights mainly by 11% driven by increased contribution Namibia and a greater Available products. our lower-end from 6% from by increased bednights have 210 880 to 224 228. for the year rate exchange The average US against the was 6% weaker Dollar P8.56 to P9.08, whilst the Rand from against the Botswana depreciated The R1.17 to R1.21. 3% from by Pula combination of the net currency Right: Picnic brunch, Kalahari Right: Picnic brunch, Kalahari Botswana. Plains Camp, Game Okavango Below: drive, Delta, Botswana. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 30 Commerce continued
against the US Dollar resulted in high position expected over the next four impairments of intangible assets, loans demand for our Namibian offering with months. Subsequent to the year-end and property, plant and equipment. bednight sales increasing by 25% over the level of forward cover taken was the prior year. reduced to zero and will remain at this Net finance costs decreased from level until in the opinion of the Board P7.5 million to P4.6 million reflecting Other gains amounting to P7 million the Rand fundamentals make cover the lower level of interest-bearing debt. include P10.7 million insurance claim necessary. Foreign exchange gains The Group’s effective tax rate for damage to an aircraft, profit from amounted to P8.1 million. the disposal of subsidiaries amounting decreased from 37% in the prior year to to P1.1 million and a loss from disposal Impairment losses amounted to 30% in the current year. The effective of associates of P5 million. P10.2 million, this mainly arose tax rate is higher than the Group’s from damage to an aircraft that was nominal rate of 22% largely due to the In line with the Group’s hedging impaired for P4.3 million and higher tax rate in other jurisdictions strategy, during the latter half of the P4.9 million impairment of our Zambian and expenses that are not deductible year the forward cover taken was assets until the leases are renewed. for tax purposes. reduced to 30% of the unhedged The remaining balance is attributed to Returns to shareholders The dividend for the year has increased by 50% to 15 thebe per
Figure 9: Capital spend (P millions) share compared with 10 thebe in the previous year. The growth in dividend 31 Botswana 52 is in line with our dividend policy and is a reflection of the earnings growth, Namibia 22 18 significant cash reserves and capital 15 South Africa 4 investment plans. 13 Zambezi 25 81 Group Outlook 99 The impact of the Ebola virus together 2014 2015 with the new visa requirements that the South African authorities have announced are expected to have a negative effect on the coming financial Figure 10: Segment profit (P millions) year. However, we remain hopeful
98 that the impact on high season will be Botswana 110 subdued. 3 Namibia 18 We have announced our investment in 27 South Africa 30 two new camps in Rwanda, a country 5 Zambezi with a unique tourism offering which 9 133 we believe will provide an experience Group 167 that complements our existing business. 2014 2015 The Group’s strategic intent is to invest in African tourism markets which offer authentic wildlife and safari Figure 11: Available bednights (thousands) experiences.
Botswana 86 94 55 Namibia 59 12 South Africa 12 26 Zambia 27 31 Zimbabwe 32
2014 2015
32 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 33 About Wilderness Sustainability report Corporate governance Annual financial statements 33 | Above: Shumba Camp, Zambia. Shumba Camp, Above: 71 21 59 62 62 65 69 67 54 63 64 20 34 32 23 23 23 25 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness (%)
2015 2015 (%)
2014 2014 Figure 13: Brand share of bednight sales Figure 12: Occupancy Botswana Namibia South Africa Zambezi Group Premier Classic Adventure Series Tour Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 32 Commerce CONSERVATION
The Conservation C is centred on one reality: without the wilderness, there is no Wilderness. This inspires our business to make investments in maximising the positive impacts arising from our activities while at the same time implementing measures to reduce any negative impacts. This respect and care for the wilderness makes for a better business and ultimately a better world.
34 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 35 About Wilderness About Sustainability report Corporate governance Annual financial statements
Translocated black rhinos released, Botswana.
34 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 35 Conservation
In order to manage the Conservation more secure ecosystems and wildlife • Measuring and understanding C more effectively, we have divided populations) is both an intended our biodiversity footprint and its it into two subsections, giving each outcome and a by-product of our day- management and, where relevant, the special attention they require. to-day operations. The latter rely on enhancing indigenous species The Biodiversity aspect involves our intact ecosystems in order to satisfy richness through reintroductions. initiatives to maintain and improve the guest expectations around game biodiversity and the ecosystems upon viewing and other experiences. Environmental management which our operations are based. The Environmental Management Systems Broadly, we view our role in biodiversity systems (EMS) (EMS) portion, on the other hand, conservation as: The intention of our environmental focuses on our endeavours to ensure • Ensuring the sustainable management systems (EMS) is to that any negative impacts on the conservation of wilderness areas minimise any negative impacts that environment from our operations are and their biodiversity through our operations might have on the minimised. the creation of viable ecotourism environment. Our camps are situated businesses, either within formally in pristine wilderness areas and, failing Biodiversity protected areas or on community such intentions, could undermine or privately owned land without the very attractions upon which our The Wilderness Group operates in formal (i.e. state or legislated) operations are based. areas of exceptional wilderness protection; or biodiversity quality that enjoy EMS comprises mostly our systems to • Ensuring that, in appropriate varying degrees of formal protection manage our camps’ energy usage and circumstances, ecotourism remains (including national parks, community related carbon emissions, water use, the preferred economic alternative conservancies and private land). waste production and disposal, and to less sustainable industries We believe that, in almost all cases, the usage of materials and products. such as mining, agriculture, our presence has enhanced the Minimising any negative impacts on hydroelectric schemes and conservation status of these areas the environment by our camps creates others that irrevocably damage and specific species within them. a competitive advantage by enhancing biodiversity, wilderness and We do not believe that there are any guests’ experiences. There are also ecosystem processes; situations where our operations have, commercial spin-offs in that our camps in a direct sense, impacted negatively • Creating a profitable, ethical and operate more efficiently and save on biodiversity. Rather, the opposite responsible business, based on on various operational supply and is the case in that the nature of our conservation, that others imitate equipment costs. business is such that a positive and implement in regions where we impact on biodiversity (in the sense of are not active; and
36 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 37 About Wilderness Sustainability report Corporate governance Annual financial statements 37 | Extent of biodiversity footprint Extent of biodiversity support conservation Biodiversity area within our operational Biodiversity Species reintroductions supported research Biodiversity Anti-poaching support for wildlife provisioning Water programmes Reforestation programmes rehabilitation Vegetation Conserving IUCN List species Red into new Ecotourism expansion strategy biomes impacts on biodiversity Anthropogenic Human-wildlife conflict of our operations standards Environmental Carbon emissions management and recycling Waste emissions carbon related Travel emissions Other greenhouse supply chain Operational consumption Water Materials consumed efficiency Energy Biodiversity 1. 2. 3 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Management Systems Environmental 14. 15. 16. 17. 18. 19. 20. 21. 22. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 100% 90% 2 7 4 80% 1 22 12 14 17 70% 11 8 15 10 8 60% 3 20 50% 20 9 16 13 40% Stakeholder materiality Stakeholder 21 19 30% 18 20% 10% Conservation assessment materiality Below: Seychelles white eye, Seychelles. white eye, Seychelles Below: Right: African wild dog, Botswana. Namibia. mountain zebra, Hartmann’s Left: Figure 14: Conservation materiality Figure assessment 0%
10% 20% 30% 40% 50% 60% 70% 80% 90%
100% Wilderness materiality Wilderness Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 36 Conservation continued
BIODIVERSITY is the basis of life on Earth as people are dependent on naturally functioning ecosystems for their survival in ways not always apparent or obvious. Biodiversity boosts ecosystem productivity; the richer the biodiversity on the planet, the greater the opportunity for medical discoveries, diversifying economic development and enabling adaptive responses to global challenges such as climate change. Most cultures have, in some way or form, their origin in biological diversity and biodiversity decline is thus a concern for many reasons. Management approach conservation workshop is held where should not compete with another in the the conservation strategy is discussed Group, and in fact should complement The aspects discussed in this chapter and biodiversity and conservation others with which it might be combined are considered material either due targets assessed. Research priorities in an itinerary or safari. In this way, to the impacts they have on our are agreed upon for the coming year, we have diversified our product to operations, directly and indirectly, or after consultation with government and the extent that we encourage repeat alternatively due to the reputation risks conservation stakeholders. business. This has meant that, as they may pose for the business. All the Wilderness has grown and spread material aspects covered are managed geographically, we have sought out by country-level management in the Our biodiversity footprint areas with complementary (and non- seven countries in which we operate, The biodiversity footprint of the competing) biodiversity. with support from Group resources Wilderness Group is the area of land when needed. on which we operate. We believe that Our current ecotourism model our presence in these areas makes a supports the conservation of a total In order to roll out the Group’s contribution towards the conservation of 2.6 million hectares (6.4 million conservation and research strategy and of the habitats and wildlife therein. acres). Of this, 2.5% is privately ensure that our conservation Our commercial strategy has, by and owned while 41.7% is communal land and biodiversity targets are large, been built around selecting areas and the remaining 55.8% state land achieved, country-level environmental of operation which ensure that our within national parks, game reserves management and Group personnel portfolio of camps and experiences is and other formally protected areas. meet regularly through country visits complementary. In other words, each Wilderness supports the conservation and workshops. At least one annual camp and its associated experiences of these land units in one or more of the following ways: Key performance indicators (KPIs) • By contributing de facto protection The following have been identified as the key performance indicators (KPIs) for the through presence and monitoring; Biodiversity section of the Conservation C. • By contributing lease or traversing fees which aid the financial viability of the area and prevent changes in Increased Decreased Reduced to 33% 7% 8 land-use; and Conservation Biodiversity footprint: Biomes: Reduced from • Through active conservation contribution: Increased Decreased 7% from nine in 2014 to eight in activities such as anti-poaching, by 33% from P6.6 million 2.8 million hectares 2015 vegetation rehabilitation, in 2014 to P8.7 million in in 2014 to 2.6 million reintroduction of indigenous 2015 hectares in 2015 species or research.
This expansion of conservation Decreased by 1% Increased 16% Decreased to 37 activities across multiple land ownership types, both within and Number of research Number of collaborations IUCN Red List Species outside of state-protected areas, projects supported: with institutions and conserved: Decreased indicates the potential of this model Decreased by 1% from 87 stakeholders: Increased from 40 to 37 species to contribute to conservation, in 2014 to 86 in 2015 16% from 70 in 2014 to particularly on community-owned 81 in 2015 land. It also underscores the important responsibility we have to continue * All of the reductions in impact noted above are due to the sale of our investment in the Malawi business.
38 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 39 About Wilderness Sustainability report Corporate governance Annual financial statements 39 | 35 75 104 458 Zimbabwe Zimbabwe 28 92 136 545 Zambia 30 85 Above: Western lowland gorilla, Congo. lowland Western Above: monitoring, Seychelles. Turtle Left: 120 254 of endemism: Guineo-Congolese Karoo- Zambezian Region, Region, and Cape Region Namib Region, African A map showing Seychelles. of endemism and the presence centres can be viewed camps Wilderness of B – online (Online appendices: Figure of endemism, indicating African centres camps). Wilderness of the presence Biodiversity inventory The number of species of vertebrates have which we occurring on land over concessions, leases, influence (through and other engagements) is traversing as a minimum estimate in presented reduced from has This figure 3. Table due to us no longer year the previous in Malawi. operating South Africa 1 5 12 50 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Seychelles Seychelles 22 77 104 352 Namibia ** ** 114 440 Congo Centres of endemism are areas that areas are of endemism Centres contain a high incidence of endemic of species species or the ranges distribution. restricted that have with can overlap of endemism Centres containing hotspots (areas biodiversity reservoir of biodiversity, a significant with destruction) and are threatened high priorities considered generally sought new have We for conservation. of endemism that biomes and centres of charismatic host differing arrays of interest and are fauna and flora grown, have to our guests. As we in us extending this has resulted our contribution to biodiversity and varying to more conservation ecosystems. located in camps are Wilderness out of the eight African centres five 48 83 111 417 Botswana 8.36% 4.75% 0.48% 0.08% 11.91% 25.37% 48.74% 50 190 260 Total 1 036 (%)
Semi-desert Dry woodland Desert rainforest Tropical Moist woodland Arid savannah East African coastal forest Indian Ocean island 0.31% Amphibians Reptiles Mammals Birds Birds Table 3: Biodiversity inventory of Wilderness operations* Wilderness inventory of 3: Biodiversity Table Figure 15: Composition of the Wilderness operational area by biome Biomes and extent of Biomes and extent presence biomes in eight different operate We continent as the African across More 15 below. Figure by illustrated detail can be found in the online of A – Biomes appendices: Figure the African continent, indicating the camps. Wilderness of presence assisting in the conservation of theseassisting in the conservation areas. of our footprint A better understanding us to allows and potential impacts with differing, perhaps focus on areas In less formally conserved biodiversity. information can use this addition, we ‘bridges’ conservation to create genetic to ensure or ‘corridors’ sustainability of sub-populations. has been an This latter initiative important factor behind the Group’s historical expansion into already ecosystems, while well-represented the former has led to us extending our new areas. into operation * Excludes urban areas such as the offices in Johannesburg, Cape Town, Windhoek, Victoria Falls, Livingstone, Brazzaville and Mahé. Falls, Livingstone, Brazzaville Victoria Windhoek, Town, Cape as the offices in Johannesburg, such * Excludes urban areas ** Data not available. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 38 Conservation continued
Inventories of species, as summarised majority, 26 species, are regarded as nearly 6% of all known species, and yet here, are important for a number of decreasing), most of the populations these species and the habitats they rely reasons: occurring on land over which Wilderness on are among the most endangered on • As a means of measuring ecosystem has influence are either increasing or Earth. Most of the water on Earth is too health; stable. Naturally, Wilderness cannot salty (93%), frozen in polar ice caps, alone claim credit for this, as it is due or too deep underground, resulting in • They can be used to assess the to the work of many different agencies. less than 1% of all water on Earth being conservation importance of specific What is encouraging, however, is that usable by humans. areas; and wherever possible or practical, we • They can (and must) be used to engage in research, monitoring or Many of our camps are within UNESCO focus conservation actions. active management of those species World Heritage Sites. Botswana’s that are regarded as either Critically Okavango Delta became the 1 000th For the last two reasons, our Endangered, Endangered or Vulnerable. site inscribed on the UNESCO World biodiversity inventory is cross- A map indicating the IUCN Red List Heritage List in June 2014. This referenced with the IUCN Red List (see Species per country can be seen in illustrates the global importance placed online appendices: Table D), particularly Figure 16 on page 41. on this unique wetland. Ruckomechi the three most threatened categories Camp is also located within Mana Pools of extant species. It is vital that our All five species regarded as Critically National Park World Heritage Site and tourism operations do not compromise Endangered are monitored wherever Toka Leya Camp is located in the the conservation status of any species they occur across Wilderness Mosi-oa-Tunya/Victoria Falls World and that, wherever possible, we concessions. In some cases, this Heritage Site. contribute to improving it – this is monitoring extends to specific research evident for example in our efforts with either conducted or supported by While conventional wisdom might regard to black rhino conservation in the Wilderness Group, while in other suggest negative impacts on natural Botswana (see top achievements on cases active conservation actions water bodies from commercial page 4). are implemented (black rhino endeavours, none of our operations translocations; Seychelles black mud have significantly altered any We therefore measure our conservation terrapin introductions; relocation of hydrological system. Instead, we achievements (some of which form hawksbill turtle nests when exposed believe that our operations have either part of our Biodiversity KPIs) through by spring tides or beach erosion). Our positively impacted on these systems, considering the following: commitment extends to four of the or at least helped maintain their • How many species featured on the eight Endangered species recorded integrity. IUCN Red List are present in our in our areas (one of the eight species Negative impacts that could result from areas of operation; is vagrant and active monitoring or safari camp operations like ours are research is very difficult). Monitoring • What are the trends in populations related to either: excessive abstraction is the main activity conducted by of these species in our areas, relative to the sustainability of the the Group but, for some species, compared to elsewhere; and source; accidental discharges of either work extends to active conservation • Does the Group implement or waste water or fuel; or the use of interventions and research (Seychelles support any actions designed environmentally harmful chemicals in white-eye mist-netting and ringing; to improve or monitor their cleaning or other functions. wild dog home range and movement conservation status? research; green turtle and hawksbill Given the small size of our camps (in turtle nest monitoring). Insofar as No fewer than 36 species that occur terms of guest and staff numbers), Vulnerable species are concerned, in our operational areas fall into the the volume of water abstracted is active monitoring, research or three most threatened categories of far below normal “industrial” levels. conservation interventions were the IUCN Red List. Of these, eight are Notwithstanding this, abstraction via conducted on 13 species during the reptiles or amphibians (e.g. Seychelles borehole or river is always relative to reporting period. black mud turtle, loggerhead turtle), the local rainfall and water table and tailored accordingly. In arid locations, 12 are mammals (e.g. western lowland During the reporting period, such as the majority of our Namibian gorilla, central chimpanzee, Hartmann’s conservation work has also been camps, efforts are implemented to mountain zebra) and 16 are birds (e.g. conducted on Near-Threatened species mitigate wastage in areas such as hooded vulture, wattled crane). Five of such as white rhino, Locally Threatened showers, laundries and swimming these species are classed as Critically species such as roan antelope and on pools. Where water is more abundant, Endangered, eight as Endangered and Endangered and Vulnerable species. 23 as Vulnerable. measurement and monitoring is not as comprehensive and usually takes the Although only three of these species’ Water is life form of borehole depth monitoring and global populations are regarded by Freshwater ecosystems occupy only similar efforts. IUCN as increasing (the overwhelming 0.8% of Earth’s surface, but harbour
40 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 41 About Wilderness Sustainability report Corporate governance Annual financial statements 41 | Vulnerable VU Endangered EN The above IUCN Red List IUCN Red The above species only contain species listed in the (CE) Critically Endangered (E) and and Endangered Vulnerable some of the (V) category for the of operation areas Group more For country. by to the information refer D in the Online Table full Appendices. Critically Endangered Critically CR Integrated Annual Report 2015 Holdings Limited Integrated Wilderness White-headed vulture bird Secretary Lappet-faced vulture VU VU VU IUCN Red List status: IUCN Red Aldabra giant tortoiseAldabra Seychelles swiftlet Seychelles kestrel Seychelles African elephant bird Secretary Lappet-faced vulture Forest elephant Forest crocodile dwarf African White-headed vulture Cape gannet Common hippo ridley turtle Olive African elephant Cape gannet bird Secretary Lappet-faced vulture zebra mountain Hartmann’s Common hippo crane Wattled Common hippo African elephant Lion Black-footed cat Slaty egret Lion Common hippo African elephant Zambia barbet Lion bird Secretary Cheetah VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU VU Grey crowned crane crowned Grey Cheetah Slaty egret Samango monkey Cheetah Common hippo hornbill Southern ground Cheetah Lion Black-footed cat White-headed vulture crane Wattled Lappet-faced vulture hornbill Southern ground crane crowned Grey Common hippo African wild dog Hooded vulture turtleLoggerhead Bank cormorant bustard Ludwig's African wild dog Hooded vulture African wild dog Hooded vulture Seychelles white-eye Seychelles turtleGreen chimpanzee Central Black rhino turtle Leatherback Black rhino Hawksbill turtle black mud turtleSeychelles gorilla lowland Western CR CR CR CR CR CR EN EN VU VU EN VU VU VU VU VU EN EN VU VU VU EN EN VU VU VU VU VU EN EN EN EN EN VU Seychelles Seychelles South Africa Botswana Namibia Namibia Zimbabwe Zambia Zambia Congo Congo IUCN Red species List of operation occurring areas within our Figure 16: IUCN Red List species per country. 16: IUCNFigure Red Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 40 Conservation continued
A number of measures are in place as Table 4: Important hydrological systems in which Wilderness operations are located a minimum standard across the Group in terms of waste water, fuel storage Country Ramsar site Major rivers Other and transport, and cleaning chemicals Botswana Okavango Delta Okavango; Linyanti; – (see the section on Environmental Chobe; Savuti Management Systems for details). Congo Odzala Kokoua Lekoli; Mambili – Our operations tend to have positive Namibia – Kunene – impacts on water bodies in two main Seychelles – – Indian Ocean respects. Firstly, the presence of an South Africa Lake Sibaya; – – authentic ecotourism operation that Tongaland turtle is dependent on the existence of a beaches pristine ecosystem ensures that the integrity of that system is monitored Zambia Busanga Swamps Lufupa; Kafue; – and, where necessary or possible, Zambezi maintained. Secondly, the existence Zimbabwe – Zambezi – of such an operation results in higher profile and public exposure for the site, as well as any potential threats to it. • Introduce a larger founder provisioning and collaboration population of black rhino to the and logistical support for a wide Biodiversity footprint, conservation and Okavango Delta; range of stakeholders. Our day- impact mitigation objectives for the • Maintain bed and vehicle densities to-day operations contribute in a next year: at current levels; meaningful way to conservation of • Attempt to increase the biodiversity a wide array of African ecosystems. • Carry out additional studies on the footprint of our areas of operation; Beyond this, we also commit impacts of roads or footprints of • Where commercially viable, substantial funds and resources infrastructure and how to mitigate to a number of conservation and expand our ecotourism operations these impacts; and to fragmented and endangered research projects on specific species • Mitigate anthropogenic impacts on biomes and ecosystems; and conservation challenges or biodiversity – a specific target for processes. This contribution is • Increase the biodiversity this is to install additional turtle- made either through the operating inventories in our existing areas friendly lighting at North Island. companies themselves, the and extend these to enable independent Wilderness Wildlife us to better understand and With Malawi no longer forming part of Trust, Rhino Conservation Botswana, conserve these areas. This the Group, there has been a reduction through third parties where we includes continued efforts to in biodiversity footprint as well as manage or oversee the operation, or catalogue cryptic small mammals, the number of IUCN Red List species through generous donations by our amphibians and reptiles across our being monitored and our strategy to guests and other partners. entire operating area; reverse this trend is to look for new • Expand our monitoring and areas to expand our business model. Such contributions are regarded research initiatives to a greater Conversely, objectives have been both as an opportunity to foster proportion of IUCN Red List achieved in the past year in terms of conservation of Africa’s biodiversity species including specific focus on re-establishing locally extinct and also as an obligation arising large birds (e.g. vultures, cranes, populations (Seychelles white-eye) from operating in important Ludwig’s bustard, ground hornbill, and introducing a larger founder conservation areas. We aim to secretary bird); population of black rhino to the entrench and improve biodiversity conservation across all the areas • Extend biodiversity inventories to Okavango Delta – which formed a large where we operate. As a result, during freshwater fish and other species portion of our increased conservation the reporting period we participated groups; contribution. in no fewer than 86 active research • Continue monitoring and, wherever and conservation projects across the feasible, conserving threatened Enhancing our biodiversity seven countries of operation. This species and ecosystems; footprint entailed collaboration with more • Re-establish or reintroduce locally We continually attempt to enhance than 81 independent institutions extinct populations into their our biodiversity footprint through ranging from state protected area former ranges where possible (for reintroduction of species and other agencies to NGOs and academic example continuing to reintroduce direct conservation actions such institutions from a wide range of native fauna and flora on North as anti-poaching, fence patrols, countries, inside and outside of Island in Seychelles); snare sweeps, judicious water southern Africa.
42 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 43 About Wilderness Sustainability report Corporate governance Annual financial statements 43 | Continued rehabilitation of the Continued rehabilitation and at the camp site vegetation in Leya Toka at area surrounding Zambia. Alien plant clearing and at indigenous plant propagation North and Island in Seychelles; • When the site of a camp is shifted or is decommissioned, a camp operation the site is fully rehabilitated. need to be closed roads Wherever in flood levels due to increasing Delta) certain (e.g. Okavango areas and closed off are these roads unless they are to rehabilitate allowed part season/dry season road of a wet area. network that is not in a sensitive rehabilitation active If necessary, ploughing up is carried out by any compacted surfaces, such as to discontinued airstrips, in order process. speed up the rehabilitation constructed with Many camps are or paths on the ground unpaved wooden walkways and many raised raised also on are of the rooms movement free This allows platforms. camp areas of animals throughout the footprint of the camp and reduces and soil compaction. for more detail on the operational on the operational detail for more Group. Wilderness footprint of the part of d’être A large of the raison is the use of Group Wilderness the ecotourism model our responsible (and to maximise the conservation of the areas thus tourism) value without the operate; in which we Wilderness. is no wilderness there engage in we necessary, Wherever rehabilitation habitat conservation, in tandem with and restoration or land land owners the relevant area managers (often state-protected agencies), NGOs or indeed under our auspices. own During the reporting period, work continued in a rehabilitation number of locations: • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness covered by by covered 2 Enhanced understanding of the Enhanced understanding of threatened ecology conservation in species that has resulted management of the improved species either in situ or in external of more they are where areas concern conservation pressing and Zambia); (e.g. lion in Botswana The confirmation of extant linking sub- corridors conservation populations (e.g. elephant, zebra, wildebeest and wild dog movement studies in Botswana); Efforts to mitigate human-wildlife conflict (e.g. Human-Carnivore Conflict study in Botswana); Establishment of biodiversity surveys in (e.g. vegetation Botswana) and population baselines (e.g. wildlife monitoring indices in all regions); of artificial and Removal causes of wildlife anthropogenic mortality and ecosystem Falls Victoria (e.g. rehabilitation Unit in Zimbabwe Anti-Poaching and North Island vegetation and in Seychelles); rehabilitation An understanding of the potential impacts of ecotourism-related activities. with only 1.7 km 2 • • • • • • initiated or supportedAll projects by based on producing are the Group outcomes for conservation relevant challenges in biodiversity current not only within the conservation, but also area operational Group’s ecosystems. it in related beyond In terms of mitigating and managing footprint our impact, the Group’s is of camp or office infrastructure bed low very minimised through to densities relative and vehicle other forms of tourism. (The Group of 25 472 a total area over operates km operational infrastructure, representing representing infrastructure, operational This helps to reduce only 0.007%.) impact any potentially negative activities and from on biodiversity negative Any such infrastructure. negligible when impacts are impacts of to the positive compared these activities, as detailed above. B in the online appendices Table See The reintroduction of threatened of threatened The reintroduction of their former species in areas (e.g. black rhino in range Botswana); in the populations of Growth species that in some threatened in favourable resulted cases have changes in their IUCN Listing Red status (e.g. loggerhead turtle and turtlegreen in South Africa and Seychelles); During the 2015 financial year, a year, During the 2015 financial was spent minimum of P8.7 million conservation. on biodiversity directly the Not all contributions during reportedreporting in period were of the supportfinancial terms as much expertis in-kind, logistical or guidance. three is thus potentially only This figure quarters must be of the total sum and investment as a voluntary recognised that does not take into in biodiversity obligations or day- account contractual to expenses related to-day operational in the biodiversity tourism (and even case of sustainability staff salaries, for example). is no Whilst the Malawi operation longer part footprint, of the operational still support we there projects Trust Wildlife Wilderness the through included so these calculations were contribution. in the conservation the contributions from Conservation (largely Trust Wildlife Wilderness Safaris for Wilderness dependent on listed in a most of its funding) are column in online appendix separate E. All other contributions are Table column, listed in the “Wilderness” part where of the contribution however Wilderness from did not come directly line, these amounts bottom Holdings’ and marked with listed separately are an asterisk; for example, projects the by managed and administered the funds but where Group, Wilderness external externally through raised were guests. Wilderness’ donors or Although often difficult to quantify in the short term, it is important to outcomes the conservation appreciate The of this work and investment. (see online projects longer-running and directly E) have Table appendices: in: resulted indirectly • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 42 Conservation continued
The intention of our environmental management systems (EMS) is to minimise any negative impacts that our operations might have on the environment. Our camps are situated in pristine wilderness areas and, failing such intentions, could undermine the very attractions upon which our operations are based.
EMS management and environmental standards that enable indicators were reviewed and updated us to stand out from our competitors. to better reflect their potential implementation The GEMS provide a structured environmental impact. The environmental aspects discussed framework by which our camps are in this chapter were determined developed, operated and, if required, In 2015, in aggregate the Group was through a materiality matrix (see ultimately decommissioned. Regional 79% (up from 75% in 2014) compliant page 37). The various topics are management, as well as contractors with our GEMS. Figures 17 and 18 managed by regional leadership employed during new builds and illustrate the results of the in the seven countries in which we refurbishments, are required to use assessments in more detail, operate, with technical support the GEMS as an operating guide and indicating which countries and provided and oversight exercised by as their minimum standard. aspects require the most attention. Group resources. In order to maintain Overall, Namibia improved in terms a high standard of environmental Measuring our camps’ environmental of compliance, however the Ongava performance, regional environmental performance camps and Serra Cafema continue to underperform in terms of energy and management and Group resources In order to maintain the waste management. North Island, meet regularly through on-site visits, environmental integrity of our in the Seychelles, made further performance assessments and Group camps, we regularly evaluate their improvements, mostly as a result of workshops. The updated Group performance against the GEMS. better fuel and water management, Environmental Minimum Standards Biannual assessments allow us to as well as the reduced use of bottled (GEMS) were implemented during the measure our camps according to the water. As a result of the more detailed 2015 financial year, following approval same standards and help us direct assessments of our staff villages, by the Executive Committee. our efforts in instances where regions or camps are not performing as they Setting a Group should. New EMS assessment criteria environmental standard for proposed in 2014 were implemented in 2015 and include more details our camps (GEMS) on staff accommodation and other We established GEMS for our common back-of-house structures. camps in order to maintain the high In addition, some performance
Key performance indicators (KPIs) The following have been identified as the key performance indicators (KPIs) for the EMS section of the Conservation C.
Down 16% Down to 1.24l Up to 79% Carbon emissions: Down Bottled water per Group Environmental by 16% from 0.097 to bednight: Down to Management Systems
0.081 tonnes CO2e per 1.24 litres from 2.06 litres (GEMS) performance: Up bednight since 2012 in 2012 to 79% compliance from 75% in 2014
44 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 45 About Wilderness Sustainability report Corporate governance Annual financial statements 45 | Below: Red lechwe in front of solar in front lechwe Red Below: installation, Botswana. the performance of our Botswana the performance of our slightly in 2015. dropped operation Botswana Notwithstanding this, our best performing region remains a GEMSfrom Zambia perspective. as significant progress showed of the back-of-house a result plans (BOHIP)improvement that were in the implemented at our camps National Park. Kafue plans improvement Back-of-house (BOHIP) of GEMS levels their lower address To Zambia and compliance, Zimbabwe, Namibia, with support regional from developed resources, and Group plans. back-of-house improvement the materials illustrated This process that structures to develop required GEMSwould improve performance and has been successful in performance. the regions’ improving still require Nonetheless, some areas further attention in the coming year. 91 86 89 64 66 76 67 79 94 92 88 87 65 59 68 73 84 92 66 68 60 74 76 79 80 86 70 74 67 77 74 79 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness (%)
80% 80% (%)
Target Target 2015 2015 2014 2014 babwe Figure 18: Average GEMS compliance scores by environmental performance indicator Figure 18: Average GEMS compliance scores by environmental Figure 17: Average GEMS compliance scores Figure 17: Average GEMS compliance Energy Energy management Water Waste Products Boats and water systems Fire village Staff Other Botswana Congo Namibia Seychelles South Africa Zambia Zim Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 44 Conservation continued
GEMS goals In 2015, we continued with our area. Finally, 22 camps make use of Our goal is for all of our regions’ commitment to reduce our dependence inverter-battery systems that enable environmental performance to exceed on fossil fuels, through further them to reduce generator running times 80% compliance with our GEMS by investments in solar energy in our from 24 hours to an average of just 2016 and believe that this is achievable camps, aiming to eventually achieve nine hours daily. We have also invested with additional focus on improving carbon neutrality of our operational significantly in solar geysers, with 72% management of energy, water and fire. business. (Our vehicles and aircraft of our camps using solar geysers are excluded from this, since presently (663 currently installed). there are no viable alternatives.) Energy and our carbon Our camps are located in remote In 2015, we consumed 214 239 GJ footprint and pristine wilderness areas and of energy (186 976 GJ directly and 27 263 GJ indirectly), a 12% decrease The vast bulk of energy consumed in delivering diesel to them is a logistical from the 244 614 GJ consumed in 2012. our business is as a result of diesel challenge, a significant cost, and an As a result, over the same period our fuel use in generators and vehicles in environmental risk. Converting to carbon emissions have reduced by camps, as well as from aviation gas and alternate energies, such as solar power, 13% from 17 412 tonnes CO e to jet fuel used in our aircraft (Figures 19 is therefore an obvious way in which 2 15 135 tonnes CO e. Carbon emissions and 20). we can make a positive impact on both 2 associated with our camp operations the Conservation and Commerce Cs. alone reduced by 17%, the above- mentioned continued solar conversions Our performance in 2015 having played a significant role in this Figure 19: Energy consumption In the 2015 financial year, our solar by operational type (%) reduction. (If we correct for new camps power investment grew to the point as well as camp closures, camp carbon where we can generate 517 kW from emissions have in fact reduced by 23%.) plants in 16 camps, of which nine (Figure 21). are 100% solar-powered and four have hybrid systems which use a As a result of the reduction in generator combination of solar power and fuel use from an increase in solar power, generators. A further 12 camps operate our camps’ energy efficiency further off smaller solar systems that power improved, reducing the carbon footprint each guest unit independently, leaving per bednight sold by 16% from 0.097 (in 2012) to 0.081 tonnes CO e per the generator to power only the main 2
Camps 47% Offices 12% Wilderness Air 41% Figure 21: Group carbon emissions (tonnes CO2e)
17 412 2012 0.097% 16 005 Figure 20: Camp energy consumption 2013 0.090% by type (%) 15 836 2014 0.085% 15 135 2015 0.081%
Group CO2e CO2e per bednight
Figure 22: Wilderness Air CO2e per passenger (tonnes)
0.05 Botswana 0.05 0.05 0.14 Generator diesel 51% Namibia 0.13 0.12 Vehicle diesel 27% 0.07 LP gas 5% Zambia 0.07 0.06 Petrol 5% 0.14 Wood 7% Zimbabwe 0.07 0.10 Paraffin 1% Electricity 4% 2013 2014 2014
46 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 47 About Wilderness Sustainability report Corporate governance Annual financial statements 47 | e per 2 bednight sold, by 2016. bednight sold, by Water consumption Water of in a wide variety operate We water availability landscapes where In many and quality differ greatly. cases, while the water may be suitable of for drinking, it contains high levels water meters calcium which destroys measurement and makes accurate For this of consumption difficult. able to of our camps are not all reason, water usage and measure accurately not reported on all therefore have we consumption. In water direct regions’ that water meters become the event saline water in very viable to measure will we or calcium rich environments, 2016. We also anticipate our carbon also anticipate We 2016. to continue to emissions per bednight tonnes CO 0.08 reaching improve, Integrated Annual Report 2015 Holdings Limited Integrated Wilderness e by e by 2 Above: Wilderness Air flying over Okavango Delta, Botswana. Delta, Okavango over flying Air Wilderness Above: Zambia. Camp, Leya Toka Nursery at Left: per passenger due to the higher load per passenger due to the the group factors associated with 22). series. (Figure Our emissions targets which during Plains Camp, Vumbura for 13% of the 2015 was responsible emissions, carbon generator Group’s for solar has been approved This will make a further conversion. significant impact on achieving the in carbon 10% reduction targeted 2016. emissions in our camps, by to for our air operation, Our target a further achieve by 4% reduction flight of improved 2016 as a result load aircraft schedules and greater factors in Botswana and Namibia, with a 2% reduction appears realistic, still therefore We in 2015. achieved carbon emissions expect our Group 14 986 tonnes CO to be below bednight in 2015. Our Wilderness Air Wilderness bednight in 2015. Our in a 10% decrease achieved operation reported carbon emissions in 2015 and efficiency (fuel burn maintained aircraft of per passenger), at an average in 2015, 0.08 tonnes per passenger 0.10 tonnes per passenger from down in aircraft The improvement in 2013. result of the efficiency has been a in circuits implementation of flight Namibia in 2014 and Botswana during The fuel burn per passenger 2015. in Namibia will continue to remain higher than all other countries because of the significantly longer distances has Zimbabwe in that country. flown in emissions a slight increase shown per passenger and this is the result accessing series now group of a large as opposed to road, our camps by This had year. air in the previous by effect on the emissions a negative Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 46 Conservation continued
install them. However, we do carefully leak in the water reticulation system purification systems at our camps and manage water consumption, and the which resulted in unsoiled water being this continues to result in significant majority of our camps operate on returned to the environment and water reductions in the consumption of low pressure systems and therefore table. However, a negative impact bottled water (40% reduction since use water efficiently. The four camps was recorded in the diesel usage by 2012), with a Group average of using high pressure systems make the camp, which increased by 209% 1.24 litres per bednight during 2015 use of a combination of water-saving in December 2014, as the water pump (read more in the waste section). shower heads and dual-flush toilets to was running excessively to replenish (Figure 24). minimise water use. the camp water storage. In terms of Kalahari Plains Camp, the water usage Water consumption goals Figure 23 illustrates how camps per bednight went up in 2015 as the We expect our Namibian operation to located in areas with an abundance number of bednights for 2015 had further reduce bottled water usage per of water, such as Xigera Camp in the decreased by 9% from 2014. bednight from the current 0.9 litres Okavango Delta in Botswana, generally (1.8 litres in 2012) to within our use more water than camps in water- Use of bottled water is also a concern 0.5 litres per bednight benchmark. distressed areas such as Davison’s for us, creating environmental All other regions, aside from Seychelles Camp in Hwange National Park in challenges with large amounts of and Congo, have already achieved this. Zimbabwe and Kalahari Plains Camp in plastic waste as well as the carbon North Island, while not yet achieving the Central Kalahari in Botswana. Water emissions associated with the our targets, continued to show consumption at Xigera is notable in production of the bottles and their impressive reductions (79% reduction that this camp recorded a substantial delivery from source to our camps. since 2012) as a result of further buy-in increase in 2015. This was due to a We have installed on-site water from staff and guests in regard to the on-site Vivreau® water system.
3 Figure 23: Water consumption per bednight (m ) Waste 1.2 Xigera Camp 2.0 The organic waste and waste water Rocktail Beach 0.8 from our camps are the most sensitive Camp 0.7 Kalahari 0.9 categories to manage, since they are Plains Camp 1.1 not taken off-site. Davisons 0.8 Camp 0.9 With respect to organic waste, the 2014 2015 majority of our camps (69%) continue to use pits where waste is allowed to degrade and, once full, are covered with soil. These areas are carefully Figure 24: Bottled water consumption per bednight (l)
0.59 Botswana 0.39 0.28 0.25 – – Congo 8.20 4.51 1.76 Namibia 1.55 1.32 0.90 7.58 Seychelles 9.99 5.98 1.81 0.37 South Africa 0.29 0.20 0.30 1.61 Zambia 0.46 0.48 0.57 0.46 Zimbabwe 0.30 0.26 0.32
2012 2013 2014 2015
48 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 49 About Wilderness Sustainability report Corporate governance Annual financial statements 49 | Above: Vivreau water system, Seychelles. Vivreau Above: Botswana. Camp, Right: Kings Pool Our waste goals Our waste Our goal is for 60% of our camps to be 2016, waste by their inorganic recycling but this is dependent upon suitable opportunitiesrecycling in maturing no is still presently There Namibia. options in Zimbabwe sign of recycling or Zambia. management and disposal. The oil management and disposal. in drums in the camps is stored from (impermeable structures bunded areas to ensure that contain any fuel spills) the environment. no leaks contaminate the from This is then removed from city, concessions to the nearest taken to South Africa it is usually where used oil from Similarly, for recycling. returned is collected and our aircraft for safe recycling. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 2015. Nonetheless, all of our camps 2015. Nonetheless, all their waste, whether separate already a or not, to generate it is recycled ingrained consciousness and an an effortlessmindset that will allow when this is to recycling transition incinerate possible. Most of our camps to order paper waste on-site in transportreduce to landfill. As bottled water discussed above, consumption per bednight is now 40% (or 434 216 bottles) less than all regions in 2012. As noted above, for Namibia, Congo, Seychelles except consuming less now and Zambia are than one 500 ml bottle of water per bednight. Air Wilderness our oil from Waste the many game drive and operation, careful in our camps, needs vehicles managed and designed to make the managed and designed but some pits inaccessible to wildlife, in problems have camps do continue to reduces This local disposal this regard. trucks to come the need for additional waste. remove into our concessions to A further alternate 25% of camps have such as local pig arrangements, the waste from farmers making use of and South some camps in Namibia camps use worm farms to Three Africa. waste. manage organic careful water requires Waste of many management, and as a result of our camps being located in areas with high water tables or alongside sewage 40% use above-ground rivers, These systems (STPs). plants treatment is no contamination that there ensure The or surface water. of ground of our camps (73% in 60% remaining 2012) use simple septic tank systems combined with soakaways. waste is collected and sent Inorganic or city for town off-site to the nearest recycling. dumping in landfill, or for opportunities limited are Recycling in most of the countries in which we have the last two years but operate, seen both our Botswana and Namibian inorganic recycling begin operations the number of waste, increasing tin, plastic, paper and camps recycling just 7% in 2012 to 47% in glass from Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 48 COMMUNITY
The Community chapter discusses all the people related to and part of our business, including guests, staff, community partners, shareholders, NGOs, governments and academic researchers.
50 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 51 About Wilderness About Sustainability report Corporate governance Annual financial statements
Staff at Linkwasha Camp, Zimbabwe.
50 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 51 Community
Due to the dynamic range of to these areas. (Many of our staff Guests stakeholders and for the purpose are drawn from these communities Our guests who travel with us and of managing the Community C more and thus form part of both internal stay in our camps are one of our most effectively, we have divided it into two and external communities.) We important groups of stakeholders. ‘sub-Cs’: believe in honest, mutually beneficial Departing guests who are satisfied and and dignified relationships with happy become brand ambassadors, • The internal community is our staff. our rural community partners in result in referrals, and travel with us They are the interface between our ways that deliver a meaningful and again in future. The same applies Company and our guests – as well as life-changing share of the proceeds to the agents serving those guests. other stakeholders – and therefore of responsible ecotourism to all Conversely, unhappy guests will not fundamental to our operations. stakeholders. Our mechanisms travel with us again and, in extreme We strive to ensure that they are include community-centric cases, might hurt our brand or demand fulfilled, rewarded and act as valued employment, joint ventures, refunds. This has a knock-on effect ambassadors of the Company; education and training, social and with their respective agents: those who health benefits, capacity-building and • The external community comprises have unhappy clients are unlikely to infrastructure development. External our neighbours, the rural send us further business. community also includes other communities that either own the land stakeholders, including NGOs and on which we operate or live adjacent For these reasons, it is essential that governments. we track and monitor the levels of guest satisfaction that we achieve. This is mostly achieved through a guest feedback system which relies on questionnaires that guests complete Figure 25: Guest feedback (Would you recommend this camp to others?) (%) when departing from each camp that 77.76 73.41 they visit. These questionnaires are March 83.06 captured into a web-based Wilderness 62% 78.08 81.28 guest database and any feedback or 80.84 April 89.28 trends emerging from this is used to 83.80 take any corrective actions that might 78.73 78.07 be needed, to improve the skills levels May 90.58 82.46 of our staff, and thus to improve our 81.26 levels of service. 81.29 June 87.33 83.29 We measure guest feedback, working 84.35 85.08 with Fred Reichheld’s formula in The July 89.10 Ultimate Question. This system takes 86.18 83.70 a more sceptical view of feedback 82.45 August 92.47 received and allows us to benchmark 86.21 ourselves internationally with our 85.34 81.03 competition. The feedback is based on September 87.90 the Ultimate Question being, “Would 84.76 79.87 you recommend the product to friends/ 80.13 October 88.68 family?” If we examine this question 82.89 in isolation, we are pleased that our 83.38 81.47 overall net promoter score (NPS) for November 86.34 FY2015 was 83.89% – this compares 83.73 80.63 favourably with the 62% average that 82.99 December 85.78 is published in Reichheld’s research of 83.14 other high-end tourism products and 81.96 84.61 an increase of nearly 6% from our own January 83.83 83.47 score in FY2014. 83.74 81.70 February 91.78 85.74 79.33 85.56 Budget 78.11 81.00
Botswana Namibia Zambezi Overall Industry average
52 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 53 About Wilderness Sustainability report Corporate governance Annual financial statements 53 | 81.31 81.31 74.61 85.15 79.12 81.08 82.91 81.69 81.38 87.31 81.86 89.71 77.76 79.73 73.89 73.50 63.02 80.20 79.27 86.84 82.08 80.84 86.89 79.93 86.75 83.24 89.22 79.63 87.22 80.33 77.76 85.59 82.93
62% Industry average Employee turnover turnover Employee and lost days Occupational absenteeism training Employee management Performance Skills management Gender equality Occupational grievances Discrimination in the workplace labour Risk of forced Corruption in the workplace against Fines and sanctions brought Holdings Wilderness nationalities Workforce equity and diversity Employee changes to operational Notice periods in regard community partnershipsFormal Informal community relationships projects Community development for associated non-profit Fundraising organisations organisations Associated non-profit Programmes Socio-economic research Socio-economic impacts of tourism Internal community 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. External community 15. 16. 17. 18. 19. 20. 21. 22. Zambezi Integrated Annual Report 2015 Holdings Limited Integrated Wilderness (%)
100% Namibia 90% 20 Botswana 80% 9 22 15 2 70% 16 3 1 5 Figure 27: Guest feedback – General Management Camp appearance and style Bar and dining service Meals Housekeeping Guiding Activities enjoyable Activities to sensitive environment stay Overall Recommended of all Average questions 60% 6 17 10 8 50% 4 12 19 13 7 14 18 40% Stakeholder materiality Stakeholder 21 11 30% 20% 10% Above: Game Hwange, Zimbabwe. drive, Above: Figure 26: Community materiality assessment 26: Community materiality Figure Community materiality assessment materiality Community 0%
10% 20% 30% 40% 50% 60% 70% 80% 90%
100% Wilderness materiality Wilderness Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 52 Community continued
INTERNAL COMMUNITY Wilderness recognises that our competitive advantage lies in our people; they deliver on our strategy and build and maintain our reputation with stakeholders. Training and development are critical to ensure that staff remain engaged and feel valued. This year, a major drive was focused on skills development, with 2 558 staff members receiving training through various platforms.
Our management approach environment in which we operate is and inspire positive action. For us to emphasises delivery through both volatile and ambiguous, which realise this, we need to ensure that we excellence, with a clear focus on is why it is imperative to have leaders not only bring the right new people into continuous improvement, ethical who are able to adapt to these our business, but also that we invest in interactions and compliance in all our conditions and who will take our the development and retention of our internal and external dealings. people along on the journey. existing people.
The aspects reported on in this The business strategy is delivered In the global business environment Internal Community chapter are with and through our people. Our in which we operate, employees managed by the Human Resources staff’s passion and talent is vital. Not look to executives for motivation (HR) department in each region, with only does this determine the internal and inspiration to deliver positive support and guidance from Group culture of the Company, but it enables outcomes. In order to be effective in HR. A Group HR workshop creates a our business to provide a world-class this area, it is crucial for our leaders to learning and supportive platform for all Wilderness experience to our guests. have strong emotional self-awareness HR departments, while regional visits and insight, as this is equally as from Group HR ensure that issues are We therefore recognise that our staff important as business acumen. Self- handled consistently across all regions. are central to our continued success. awareness allows leaders to identify the gaps in their management skills People strategy Talent management and and recognise the areas in which they are most effective, as well as In order to remain competitive in succession planning those that could be improved. These an ever-changing global market, Our vision is to be Africa’s leading understandings aid them in making Wilderness requires leaders who are ecotourism organisation, creating discerning decisions. able to make sound decisions, have life-changing journeys in order to build confidence and are resilient. The sustainable conservation economies
Key performance indicators (KPIs) Right: Guest experience, Vumbura Plains Camp, Botswana. Below: Meet the Himba people, Serra Cafema Camp, Namibia. Focus on Staff people strategy participation Continued roll out of the Wilderness Group HR focused to increase the people strategy with the focus participation of staff in the Employee on talent management, people Relationship Index (ERI) Survey across development and empowering the business. This was successful and the HR managers in the regions. During sample size increased to 1 504 compared the year a special effort was made to 1 013 in 2013. This equates to an to ensure that processes are overall 61% participation rate. The level standardised across the Group but of engagement by staff increased slightly yet tailored per each region’s specific from 59.3% to 59.7%. needs. Staff training Year-on-year increase in numbers of staff trained. All our regions (except for Congo and Seychelles which are both management contracts and not under our complete control) increased the amount of training.
54 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 55 About Wilderness Sustainability report Corporate governance Annual financial statements 55 | for succession planning. As partfor succession planning. of a a total process, continued assessment during assessed incumbents were 70 of year. the past financial has Dashboard Talent Working A Talent based on the been created, This ensures Management Programme. the right people in deploy that we the Group, throughout the right roles Integrated Annual Report 2015 Holdings Limited Integrated Wilderness from both a group and individual both a group from the This involved perspective. together to team working Executive teamwork principles around create and support, as individual as well engagement assessments and critical with each member. conversations Based on the outcome of the plans assessments, development up and implemented been drawn have The Talent Management Programme Management Programme Talent The programme is designed as a phased focus on with the first phase to within the the most critical roles the Company’s business to achieve All high potential objectives. strategic individuals within the business, were the hierarchy, and throughout therefore The process identified. started team with the Executive Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 54 Community continued
creating greater job satisfaction and responsibility to invest in their future, 1 210 were female and 1 348 male. value-add to the Company. This is an ensuring that they have the tools and The internal training platforms within ongoing programme that is adapted knowledge they require to be successful Wilderness are divided between our along with the Company’s strategic in their roles. With this in mind, the camps, sales and reservations, as imperatives and it is envisaged that, Company continues to actively support well as our Air divisions. Additionally, going forward, employees will be all forms of training, both internal and we have invested in our service and well-prepared to take on new positions external, not only to impart the necessary hospitality courses on the Lobster Ink as required. skills, but also to motivate our people and virtual training platform. Each region allow them to have a long and successful of operation has a training department Training and development career with Wilderness. that caters to the unique needs of its employees. As our people are our most important Over the past year, 2 558 Wilderness asset, we believe that we have a employees were trained, of which
Staff at Shumba Camp, Zambia.
56 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 57 About Wilderness Sustainability report Corporate governance Annual financial statements 57 | Chef training was a key focus area for area focus key a was training Chef Namibia, with new course material the camps. throughout introduced completed Assessments were including written after the training, tests and practical comprehension in assessments. An improvement was noted. results in service also took place Training Shop to update all new Travel at our consultants on our systems and This was carried out by processes. Officer. our Quality Assurance The service team attended training in-house workshop in a four-day Zambia to finalise the Namibian serviceregional the goals in line with serviceGroup strategy Service and hospitality In Botswana, service and hospitality was focused on teaching staff training to ensure Way Wilderness about the our camps. consistency across coaching and assessments Follow-up that done periodically to ensure were maintained. were high standards 168 employees the past year, Over camps and departments various from on our service training and received hospitality standards. Service and hospitality • • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Mentorship was A mentorship programme to for junior employees introduced depth and scope. them greater give was also aimed at This programme employees identifying high potential motivate we and then ensuring that on senior them to take and develop This positions within the Company. citizens more have we that ensures as a in the tourism industry involved as meeting legislative whole, as well are there Currently requirements. 20 mentors and mentees on the programme. Environmental and Tourism Namibian Academy for a Desert presented Hospitality (NATH) as an Elephant- Elephant course as well Association Human Relationship by facilitated Both were workshop. experts and open to all interested guides Wilderness Six trainees. attended these workshops. A People and Elephant Amicably Co-existing with NATH workshop was also run by the goal of educating local staff and for peaceful communities on strategies co-existence with elephant in their environment. Two employees (one from Zambia and another from Zimbabwe) attended a wine advisory course in Cape Town, hosted by our hosted by Town, attended a wine advisory course in Cape Zimbabwe) Zambia and another from (one from employees Two tastings and also learning various wine farms, This course included visiting Under the Influence. wine suppliers and trainers, oil production. about olive and and has been accepted positively region in the Zambezi out to 250 employees was rolled recording Way Wilderness The levels. motivation in improved resulted Town. the Culinary Guild in Cape by presented chefs attended in-house training Zimbabwean Ten Botswana internships in Botswana Government Wilderness Safaris the first time, For with the Botswana collaborated to place tourism Government roles in various management graduates them within the business, enabling and experience in to gain exposure potentially the workplace, while also managers pool of citizen the increasing within the Company. in 12 interns being placed This resulted within the Botswana company: six in and the environment, the corporate The interns will other six in our camps. their experience to vary roles exchange divisions. During this the various across time they will be assessed to determine to areas their skills and development gain maximum growth that they ensure and exposure. Namibia development Leadership Guides and Managers The Emerging the second was run for Programme guides and two Three year. consecutive managers completed the programme been permanently employed and have were programmes The Wilderness. by and the 12 to 18 months run over the put through incumbents were in different aspects of training various to be This has proven environments. that successful due to the exposure the various from received the trainees throughout mentors they encountered the programme. Zambezi • • • Regional training highlights training 5: Regional Table Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 56 Community continued
Lobster training courses Table 6: Lobster Ink training The Lobster Ink education platform Botswana Namibia Seychelles Zambia Zimbabwe is built around the creation and Courses attended 4 098 3 838 86 1 631 3 057 delivery of detailed courses on international skills, standards and Average percentage product knowledge, using an online (%) 73 63 70 74 74 learning and assessment environment to ensure ease of access and focused, measurable training outcomes.
Table 7: Average training hours per employee
Botswana Congo Namibia Seychelles South Africa Zambia Zimbabwe 2013 269 3 95 14 115 153 23 2014 326 12 55 30 54 14 18 2015 360 10 60 28 65 22 21
Letter from Johann Cloete, transferred to Damaraland, Doro surrounding local communities Nawas where I honed my tracking skills since end-2012 until present. guide training workshop looking for the desert elephants of the My journey with Wilderness Safaris north-west, and learned about rock In 2014, I was promoted to Head officially started in 2007, but from art and cultural guiding. A year later Guide at DRC. Then I was invited to 2006 I was already part of the I moved to Damaraland Camp where I attend the Guide Mentor Workshop Company’s entry- and intermediate- then spent several years until the end held in Zimbabwe, Kashawe, level guiding programmes. Then, of 2012. This is where I learned even in February 2015. The training about a year later, I was recruited more about community-based tourism programme was attended by guides as one of three candidates selected and got involved in conservation. This from the different countries where out of a group of 20 that went for interest in conservation then led me Wilderness Safaris operates. guide training. And so my bush to ultimately join the Desert Rhino I felt that this was the most life started. I worked at Kulala Camp (DRC) venture with Save the significant training I have had to Wilderness Camp in Sossusvlei Rhino Trust in partnership with the for about 13 months. Then I got assist me in my new role as a guide and mentor. The training not only provided me with tools to improve my own guiding, but also with new methods that I can share with my fellow guides. The workshop also gave us an opportunity to learn first hand about our sister camps in different countries of operation. It allowed us to share our personal guiding techniques with fellow guides and practise our newly acquired skills through role-playing. For me personally, it was also a first travelling to Botswana, and Victoria Falls to Hwange in Zimbabwe. This has broadened my horizons and now I can relate to guests that have travelled to these parts on their safaris. The workshop not only inspired me to be better, but has provided me with new ways to provide a better experience to our guests and add value to my fellow guides’ skillsets!
58 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 59 About Wilderness Sustainability report Corporate governance Annual financial statements 59 | goals with the contribution of the team, goals with the contribution of values the while also reinforcing Wilderness. goal with performance Our overall that management is to ensure subsystems and all the Wilderness teams and employees) (processes, that efficiently work together in a way the achievement contributes toward Bi-annual formal of the business goals. held with all employees. are reviews The focus of the discussion is to fair and honest feedback provide great to acknowledge in order performance and to assist employees areas. in identifying development then are of development The areas attending employee the by addressed internal and sometimes various courses. Senior external training an annual 360-degree managers have assessment and formal face-to-face gives This process feedback session. the senior leaders insight into their as their own leadership ability as well needs. development Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above and left: Guide training workshop, Zimbabwe. workshop, and left: Guide training Above Performance management Performance The focus of our performance management system has been to individual to team away from move This has been achieved contribution. and aligning individual objectives by placed in teams during the final module final the during teams in placed and to work on and assigned a project to a panel of Executive then present the last day of Committee members on the module. All the participants were work and input, for their hard rewarded and graduated. analysis of the After a thorough system, and to align with current the the talent management strategy, Business School will be Wilderness Leadership Wilderness the by replaced the Company This will allow Academy. the specific development to address needs and capabilities of its future leaders and successors, based on the talent management assessment and This will ensure engagement feedback. placed in the that the right people are at the right time and hence right roles contribution to the make a greater success of the business. The Wilderness Business School final module of the and The third Wilderness leadership course of the Business School was held in June This module, called “Shaping the 2014. focused Energy”, with Renewed Future Wilderness aspects of the on various business such as hospitality and service, and performance, culture as presentation teamwork, as well the startskills. Before of the module, participants completed a series of four importantassignments addressing issues and aspects within the business. these Based on the feedback from assignments, the participants were Guide training Guide training the sharing is vital to Knowledge training ongoing success of our and, in turn, the business. programmes that our guides remain ensure To the opportunity and have motivated the first each other, with to interact was Workshop Guide Mentor Group chosen Guides were held in Zimbabwe. and had of operation each area from the opportunity not only to enhance but also to meet one their knowledge, knowledge. another and share covered, were of topics A range on camps including presentations as scenario as well work, and group guiding techniques their where drives and ability to deal with guests were which tips, advice and and from rated gleaned to improve information were that the learning ensure To their skills. continues, all participant guides been tasked to complete an have the middle of the year. assignment by Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 58 Community continued
Remuneration and employee employees are required to join the within Wilderness. The barriers Company pension/provident fund currently faced include broad gender benefits while in Zimbabwe and Zambia the biases, a small pool of potential The Group’s remuneration policies Company subscribes to the legislative female leaders internally, a lack of are detailed in the report of the requirements of the state pension fund. geographic mobility and a lack of Remuneration and Nomination flexible policies for females. New Committee. A performance-based reward system recruitment is also challenging is in place with the aim of attracting as there is a limited pool from It is imperative that our remuneration and retaining the best people. As which to source female leaders. policy is consistent across the part of the Group HR strategy our This challenge will be used as an Group and competitive in each of remuneration construct will continue opportunity for HR to focus on going the countries where we operate. to be scrutinised and updated to forward by launching a number It ensures parity amongst our complement our talent management of initiatives aimed at attracting employees and that their packages are process. and developing under-represented based on level of skill, competency, groups and future female leaders. experience, qualifications and level of Employment engagement responsibility. An annual internal HR audit is conducted and the Company survey Employment demographics uses these results to rectify any The third employee engagement and diversity imbalances that may exist within our survey (Wilderness Voice) was Wilderness employs 2 436 people. people practices. No explicit imbalance rolled out during the course of the As a company we do not distinguish is evident in the business. year. The timeframe was extended on race or gender, however we are to give employees more time to committed to employ staff from Employee benefits have remained complete the survey, as well as not our neighbouring communities. In unchanged over the reporting period to affect operational requirements. South Africa and Namibia we are and all statutory requirements HR personnel travelled to each lodge compelled by legislation to report on are adhered to in each country to roll out the survey and to answer employment equity and the details of operation. Although these any questions. The survey was well are included on page 61. requirements vary, the Company received, with a substantial increase in generally ensures that employees the number of employees participating From a citizenship perspective we based in the bush (temporarily, (59.6% of staff). The results have given report an improvement of almost 1% seasonally or permanently) receive us greater insight into the trends within in the statistics which shows that housing, transport to and from their the various regions where we operate. numbers of non-citizens employed place of work before and after their HR will implement a programme to are down to 7.1% from 7.9% in the leave cycle, as well as rations and identify the barriers to engagement previous year. This is a reflection uniforms. and, from this, action plans will be of our continuous efforts to upskill drawn up and implemented. local community members into The Company has a medical aid fund positions which were previously in each country and all full-time and filled by expatriates. permanent employees are encouraged Inclusion and diversity to join the fund with the Company Despite a push for gender diversity in covering 50% of the cost. In Namibia senior positions, women still make up and South Africa, full-time permanent a relatively small percentage of leaders
Staff at Hoanib Skeleton Coast Camp, Namibia.
60 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 61 About Wilderness Sustainability report Corporate governance Annual financial statements 61 | 3 10 12 41 15 7.1 40 1.5 1.5 1.6 8.1 3.3 13 121 27 27 52 17.1 17.1 239 2015 37.0 37.0 139 261 Total Zimbabwe
–
1 – – – 8 7 1.7 7.9 3.2 3.0 2.7 21.6 10.4 2014 33.3 1 7 5 11 71 Indian 28 123 % Non-citizens Zambia
7 11 1.8 4.1 1.9 10 91 17 8.0 5.4 29 10.6 2013 165 32.8 44.4 White 12 41 15 10 40 121 239 2 4 8 8
12 1 1 1 1 – 54 9 86 174 13 South Africa 2015 South Africa Coloured 6 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 11 16 17 46 50 4 4 9
– 11 146 15 – 40 7 112 11 195 14 21 53 2014 Black Seychelles Non-citizens 4 8 4 13 41 10 11 14 110 83 190 11 14 101 171 83 150 530 2013 101 171 150 530 Total Total Namibia
58 4 92 5 4 6 121 231 10 10 257 981 522 39 2015 2 262 – 2 White 13 14 16 70 25 Congo
80 40 7 Namibia 121 10 226 295 536 966 96 77 161 491 140 2014 2 264 Black/ Citizens 7 Coloured 40 155 341 175 349 1 067 5 84 140 510 224 305 926 2013 2 194 Botswana Workforce nationalities Workforce Total Total Total Zimbabwe Over 50 years Over Over 50 years Over Zambia 31 – 50 years 31 – 50 years South Africa 18 – 30 years Female 18 – 30 years Female Seychelles Over 50 years Over Over 50 years Over Namibia 31 – 50 years Congo 31 – 50 years Male 18 – 30 years Botswana Male 18 – 30 years Gender and age breakdown of employees by country by of employees Gender and age breakdown 10: Table Employment equity figures for South Africa and Namibia equity figures 9: Employment Table Table 8: Table Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 60 Community continued
Table 11: Turnover by category The staff turnover is at 27% for the Male Reason year. The Company continues to 18 – 30 years 210 Resignations 356 monitor the turnover levels in each 31 – 50 years 173 Dismissals 84 category to ensure that critical staff and talented individuals are retained Over 50 years 19 Death 7 within the business. Female Absconded 35 18 – 30 years 146 Retrenched – 31 – 50 years 110 Contract not renewed 151 Over 50 years 7 Retired/transferred 32 Total 665
Table 12: Workforce turnover percentages per region (%)
Botswana Congo Namibia Seychelles South Africa Zambia Zimbabwe Total 2013 21 n/a 37 40 33 28 18 26 2014 30 30 28 78 25 21 13 20 2015 27 17 30 68 17 13 22 27
Staff wellness In South Africa an annual medical day they can attend the necessary is organised in the offices to promote appointments and get the required We believe that a healthy and safe health and wellness during which medication. The Company also offers work environment is directly related all employees have an opportunity a pickup service for medication for to a higher productivity rate. We strive to interact with various healthcare all employees based in the camps. to apply the ‘prevention is better practitioners and have basic medical Wilderness offers a non-discriminatory than a cure’ approach and try our checks done. environment where HIV is openly best to provide our staff, especially discussed and any person affected by those in remote areas, with the Due to the enormous drive within this disease is supported, counselled necessary preventative healthcare. Wilderness with regards to HIV/ and assisted as necessary. In Botswana, the Company has AIDS over the past few years, HIV contracted the services of Okavango fatigue was displayed in employees’ We aim to ensure acceptable and safe Air Rescue to provide a preventative behaviour. In order to continue with working conditions as well as a work healthcare service to our staff in the drive and understanding that this environment free from hazards. camps. This programme includes two fatigue may impact on our message, an Botswana nurses who are available educational book was printed and sent In the past year there were 13 work- to our staff and travel throughout to the camps illustrating the necessary related injuries in Wilderness with two our camps educating and assisting information on HIV. This will allow fatalities. Even though absenteeism with primary healthcare matters. This employees to read the book at their has substantially decreased from the has reduced the absenteeism rate own convenience. previous year it is still high in regions in the camps. In Namibia, a medical such as Botswana, however the practitioner is contracted to the Most of our staff members use the Company has implemented various Company and visits the camps on a services of government clinics and initiatives which should further monthly basis doing health checks hence often do not choose to use decrease the absenteeism. on all our employees and conducting the Wilderness-offered HIV testing HIV testing. All medical issues are programme. During the past year, treated confidentially. In Zimbabwe 512 (21%) of our staff members were and Zambia, Wilderness has employed tested for HIV. a registered nurse, who works closely with a NGO and clinics are held in Wilderness supports and assists camps and HIV testing and counselling affected employees with transportation is provided. and time away from camp, to ensure
62 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 63 About Wilderness Sustainability report Corporate governance Annual financial statements 63 | – – – – – – 34 Zimbabwe – – – 2 19 32 211 298 Zambia 1 – – – – – 53 358 Ethics has an Group Wilderness The anonymous ethics hotline which a platform for employees, provides suppliers, or guests to report any This is incidents of ethical misconduct. an external company that by monitored year, notifies us of any risks. In the past reportswere submitted: all were five and resolved. investigated right and 13% of our workforce belong right and 13% of our workforce Bargaining to unions. Collective in place with these are Agreements the Company unions whereunder as negotiates on wage increases as other basic conditions of well in protecting believe We employment. and the rights of all our employees that fair and continually ensure are practices compliant employment in place. South Africa Left: Health and wellness day, South Africa. day, Health and wellness Left: 1 – – – – – – 427 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Seychelles 1 – – – 2 64 65 128 Namibia – – – – – 13 128 278 Congo – 8 Collective bargaining International human rights are Wilderness. and upheld in respected of Association is one such Freedom happened in Namibia where sadly happened in Namibia where was Rutavi, Karatu another driver, passed in a collision and he involved away on the scene. 167 106 106 252 3 050 4 657 Botswana Number of work-related Injuries Number of work-related Number of days lost due to Number of days lost due to work- absenteeism related injuries related Number of chronic diseases Number of chronic in workplace* recorded Number of employees booked Number of employees diseases off sick for chronic Number of days lost due to to chronic absenteeism related diseases Number of work-related fatalities work-related of Number Number of work days lost due to paid absenteeism (paid sick leave) Number of work days lost due to unpaid absenteeism Fatalities Fatalities report sadness that we It is with great two staff fatalities were that there The first one occurred for the year. Daniel in South Africa when a driver, Maringa, was in an accident whilst He on his way to make a delivery. passed away in the ambulance on the The second incident way to hospital. * Chronic diseases: Malaria, high blood pressure, STD, low blood pressure and tuberculosis. and tuberculosis. blood pressure low STD, blood pressure, diseases: Malaria, high * Chronic Table 13: Health statistics 13: Table Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 62 Community continued
EXTERNAL COMMUNITY Our external community includes all external stakeholders, such as community partners and neighbours, governments, NGOs, other private sector businesses and educational institutions
What is external community? conserve. These will be determined • Reduce poverty; by the attitudes and behaviour of Our external community is a wide • Improve living conditions; communities living in, or adjacent to, stakeholder group that includes • Empower communities; and protected areas, and who frequently all communities with whom we bear the costs of conservation through • Enhance local education systems. engage, whether as neighbours, human-wildlife conflict (HWC) and the partners or landlords as well as our This is done through improving opportunity costs of not being able to host governments, NGOs, academic use conserved areas for settlement or school infrastructure, introducing researchers, etc. agriculture. As a result, there is a direct CITW Eco-Clubs, scholarship programmes, nutrition programmes The material aspects in this chapter correlation between the success of our and the promotion of small community focus specifically on the rural business and the goodwill and support businesses. communities because of the positive of surrounding communities. and negative impacts that they will All material aspects reported on in this have on the future of our business, Our community engagements and chapter are managed by country-level and because of the need to ensure development activities recognise these staff within five countries of operation, that they benefit from their natural realities and broadly aim to ensure with support from a Group Coordinator, resources. The material aspects, that neighbouring communities value as well as Group resources which determined through an analysis of conservation areas and will, therefore, are available to all regions. In order internal and external stakeholders, ensure their long-term sustainability. to maintain ethical and equitable included community partnerships, Our Children in the Wilderness (CITW) Children in the Wilderness, impacts of partnerships with our external programme is our main means of tourism and community development communities, country community external community engagement. Our projects. development staff and Group resources overall External Community strategy, meet regularly through regional visits The profitability and sustainability which includes CITW, aims to: and annual workshops. In June 2014, of our business depends upon the • Ensure that local communities a Group Community Development health of the wilderness areas in derive an equitable share of and Children in the Wilderness which we operate and the ecosystems benefits from conservation and workshop bought together all country and species that they seek to tourism; community development staff to
Key performance indicators (KPIs) Education Community programmes partnerships Supported Children in the Wilderness Community partnership contributions to ensure the operation of an effective, amounting to more than P43 million sustainable environmental education programme Community Community projects processes Raised, managed and administered Developed and standardised various funds amounting to P2.5 million for community development processes community development projects
64 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 65 About Wilderness Sustainability report Corporate governance Annual financial statements 65 | Our Children in the Wilderness Wilderness in the Our Children programme; formal partnerships; Various of locals; employment Preferred community of various Development and projects; and social welfare of goods The use of local suppliers and services. engagements with local communities, engagements with local including: • • • • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above: Celebrating World Forest Day, Malawi. Day, Forest World Celebrating Above: Zambia. left: CITW annual camp, Top Botswana. project, Shashe adult Eco-Club crafting Left: Our community engagement Our community methods our goals we to achieve In order of implemented a wide range have concomitant buy-in and support.concomitant buy-in and This that the projects ensures approach with sustainable, aligned more are that resultant community needs, and maximised. benefits are Our community engagement goals maintain aim to establish and We sound, equitable partnerships with the work and communities with whom we engage. Partnerships and relationships into after discussions only entered are with communities and with their discuss our community development development discuss our community its the CITW programme, projects, way forward. sustainability and the a number of CITW At this workshop, materials, community programme etc. were structures, development a sharing was and there standardised challenges, of ideas, successes and for further which allows development and programmes of the various community region, In each projects. staff meet on a regular development basis with community partners, the as engage with, as well schools we sector and private other community, NGO partners. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 64 Community continued
Being located in many remote and rural – Other community projects, areas gives us the opportunity to assist including libraries, Figure 28: Wilderness’ contribution in community development and to scholarships, nutrition to CITW and community development projects (%) develop partnerships with communities programmes, vegetable living in and around conservation gardens, etc.; areas, as well as with various NGOs – Sale of locally-made curios to and other private partners. We have guests; developed a Group Community and – Provision of administrative, Culture Strategy for 2015-2019 which is logistical and other support to based on socio-economic assessments NGOs, academic researchers with inputs from all regional community and communities in our areas; coordinators and experiences to date. and The strategy includes appendices for each region, outlining their region- – Empowerment and upliftment specific strategic objectives, short- and resulting from joint business From Wilderness long-term goals and guidelines of how ventures, participation in local (excluding camp nights) 31% they engage with communities, how decision-making and improved From Wilderness (camp nights) 11% community development projects are social welfare. Other sources 58% selected and how participants for the Some specific projects implemented to various CITW projects are chosen. date have included: Our relationships with communities • Building infrastructure, including and other stakeholders are either libraries; formal or informal and depend on the • Managing numerous school specific project and its requirements. scholarships; The nature of the relationship will • Assisting with the development of determine the degree of involvement livelihood diversification projects; of community members, the level of benefits they receive and the extent of • Training and skills development; capacity building, skills development • Various environmental projects; and training. and • Formal relationships include any • Introducing vegetable gardens and contractual agreements and take vermiculture. the following forms: A reduction in poverty levels is – Employment and the also achieved through preferred associated payment of wages employment of local people and the and salaries; consequent increase in rural household – Joint business ventures of incomes. various kinds; Although CITW is an independent NGO, – Formal contracts with local it is supported by Wilderness through suppliers; in-kind as well as monetary support. – Contractual agreements with Office space for CITW staff, logistical communities in regard to and administrative support, etc. are employment, supplies of goods all provided by Wilderness. Funds for and other services, etc.; and CITW are raised largely through the – Formal, as well as on-the- annual Nedbank Tour de Tuli mountain job, skills training and bike ride, guest donations and development. support through various other grants. Community development projects • Informal relationships are not are largely funded through grants, contractually binding but are no guest donations and, in Zimbabwe, less important and have developed through our partnership with the Grand in all regions. These include: Circle Foundation. Membership fees – The CITW programme, for the Wilderness Safaris Residents including annual camps and Programme are all also donated to Eco-Clubs; CITW, contributing substantially.
66 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 67 About Wilderness Sustainability report Corporate governance Annual financial statements 67 | 1% 1% 9% 3% 2% 2% 4% 6% 7% 4% 19% 21% 30% 34% 46% (%)
(%)
Camps Eco-Clubs CITW General’s yearly approved funds approved yearly CITW General’s 11% funds Raised WS in-kind funding WS salary payments, etc programme WS Resident’s WA guests Tuli de Tour In-kind other YES Eco-Mentor training Scholarships Admin expenses Operating Other projects* Other projects refers to community refers Other projects to CITW and largely not related projects in administered includes projects Circle on behalf of the Grand Zimbabwe Foundation. Figure 30: Use of funds, excluding salary cost * Figure 29: Sources of funds Integrated Annual Report 2015 Holdings Limited Integrated Wilderness (all newsletters can be found at (all newsletters can be http://www.wilderness-safaris.com/ annual Our about/the-4cs/community). us to also assists Workshop Regional assess learnings, progress, measure ensure and to identify ways to improve and that our community development and sustainable are CITW projects having the maximum impact. the end of the reporting Towards compiled a consolidated period, we report on the financials of CITW and projects. all community development challenges to developing are There numerous such a report, are as there channels of income, including in-kind sources numerous contributions from well as to quantify, difficult which are channels. as a number of expenditure an approximate 29 provides Figure of income and summary of sources a summary of where 30 provides Figure spending is taking place within the External Community department. Left: CITW Regional Workshop. CITW Regional Left: Camp staff member and Rocktail Below: in library. her son in the newly refurbished South Africa. KwaMpukane, Measuring our progress progress measured have date, we To and in community development the recording engagement by to projects monetary amounts paid of joint or communities in terms as the number of as well ventures, these. by people impacted or affected been largely have Such projects as and when funding has introduced been allocated. Although tangible are as infrastructure, such projects, for donors, we “popular” often more donations towards attempt to direct such as capacity intangible projects building and scholarships, which are importantoften more for long-term reduction. sustainability and poverty A quarterly community development newsletter is distributed to all our guests, agents and interested regions, newsletter The other stakeholders. and details community projects engagements underway and further assists us in monitoring their progress Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 66 Community continued
Promoting inclusive business 1 800 community members in with communities or community in tourism Botswana, Malawi, Namibia, South trusts. In some situations, the Africa, Zambia and Zimbabwe. The community is involved in the Wilderness promotes tourism which data collected was analysed, reported ownership of the respective increases business linkages between on and published in academic, camp (e.g. Rocktail Beach Camp; the Company and our community peer-reviewed journals1, as well as Damaraland Camp; Doro Nawas neighbours for long-lasting mutual a Doctoral Dissertation in Resource Camp) or is paid lease fees benefit. This includes working with Economics at the University of (e.g. Vumbura Plains and Little a number of different partners. Cape Town. During the reporting Vumbura). In both cases they These include community trusts period, research was conducted on are sharing in the benefits of the (e.g. Mpukane Trust at Rocktail Beach a community development project in business venture and there are Camp, Okavango Community Trust at Botswana – this research is ongoing. benefits and costs for both parties. Vumbura Plains and Little Vumbura), Ownership brings with it a sense of community conservancies (Torra, Contractual and other community pride and responsibility, but also a Sesfontein, Anabeb, Doro !Nawas and partnerships level of risk; Marienfluss in Namibia), as well as Tourism operators in Africa have • A tripartite agreement between government agencies (e.g. National entered into a variety of equity/ the Wilderness Group, government Parks in Zambia and Zimbabwe). ownership partnerships with local and the community existed at A number of our projects also involve communities. Benefits from these Pafuri Camp, where we partnered working with NGOs and other private vary according to the nature of the with South African National Parks sector partners. Our community and agreements. The level of community and the Makuleke community. conservation projects also receive involvement also depends on the attention from academic researchers, We built the camp and operated, specific conditions of the equity a number of whom are presently managed and marketed it, in arrangement, with a large amount of working in our regions partnership with the Makuleke (see Wilderness Wildlife Trust: involvement occurring in community- community as landowners, and www.wildernesstrust.com). Other based tourism (CBT), and a more with SANParks responsible for rural community partners include limited amount in public–private conservation activities. This local suppliers of goods and services, partnerships (PPPs). Research partnership helped raise the 2 community guides for village visits, (Snyman, 2012 ) has shown that, profile of the area. The partnership local craft makers, formal business where communities have some form agreement was, however, partners and our staff. of vested interest in the business, terminated during the reporting they are generally more positive about period; Our strategy for achieving harmonious ecotourism and conservation. We • Community as landlords: In relationships with community partners have therefore attempted to include Namibia, the Community Based local communities in our ecotourism In order to achieve harmonious Natural Resource Management operations, preferably formally, relationships we need to understand (CBNRM) programme devolved though some partnerships are more the communities with whom we power to local conservancies informal. Below is a list of some of the are engaging: their socio-economic and gave them stewardship over partnerships in which the Group is situation, demographics, attitudes their land. In these cases, the engaged: towards ecotourism and conservation, Conservancy is our landlord and their needs and how best to partner • Joint Ventures (JVs): The (as noted above) for Damaraland with them to improve their social Wilderness Group and various Camp and Doro Nawas Camp welfare and encourage development. community partners: We have we have also developed formal entered into a number of joint joint ventures. Alternatively, in From 2008 to 2010 we conducted socio- business ventures. These are the Marienfluss Conservancy, economic interviews with more than formal, contractual agreements Serra Cafema Camp pays the
1 For example: Snyman, S. (2014). Assessment of the main factors impacting community attitudes towards tourism and protected areas in six southern African countries, Koedoe 56(2). DOI: 10.4102/koedoe.v56i2.1139 Snyman, S. (2014). The impact of ecotourism employment on rural household incomes and social welfare in six southern African countries. Tourism and Hospitality Research, 14 (1-2) 37-52 DOI: 10.1177/1467358414529435 Snyman, S. (2014). Partnerships between private sector ecotourism operators and local communities in the Okavango Delta, Botswana: A case study of the Okavango Community Trust and Wilderness Safaris partnership. Journal of Ecotourism, 13 (2-3), 110-127. DOI: 10.1080/14724049.2014.980744
2 Snyman, S. (2012) Ecotourism joint ventures between the private sector and communities: An updated analysis of the Torra Conservancy and Damaraland Camp partnership, Namibia, Tourism Management Perspectives, 4, 127-135. Snyman, S.L. (2012). The impact of land management systems on community attitudes towards tourism and conservation in six southern African countries, Parks, 18(2), 20-31.
68 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 69 About Wilderness Sustainability report Corporate governance Annual financial statements 69 | communities in these cases also communities in these local staff employing from results training in their skills and investing and and development; Partnerships with NGOs: In have of Congo we the Republic partnered with the African Parks for responsible Network, who are of Odzala-Kokoua conservation our camps where National Park Lango and Ngaga, managed under are Collection, Wilderness the located. • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above: CITW annual camp, Zimbabwe. CITW annual camp, Above: Wildlife the Botswana at Dr Susan Snyman presenting Left: Maun, Botswana. Symposium, Research Non-Wilderness private private Non-Wilderness – management landowners Some of our contracts: with private engagements are partnerssector camps the own who and/or either manage which we the specific market, depending on agreement; with sector, private Pure In cases such as philanthropy: Mombo and other camps in the as Delta in Botswana, Okavango in as in Hwange National Park well owned the camps are Zimbabwe, engagement and any Wilderness by voluntary, is communities local with philanthropic various through efforts. Engagement with • • conservancy lease fees and the lease conservancy our landlords, community are than formal joint venture rather partners; Partnerships (PPPs): Private Public in a number of involved are We agencies PPPs with National Park operate. we where in the regions National Our camps in Kafue in Zambia and Hwange Park bring in Zimbabwe National Park together the expertise of the agency National Parks relevant and conservation in biodiversity ours in ecotourism and business. and Our community development engagement in these partnerships informal and voluntary; is largely • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 68 Community continued
Table 14: Joint venture and other payments to community partners
Annual Staff Total value costs* payments Country Camp Nature of engagement Details P P P Botswana Vumbura Plains, Formal joint venture A joint venture exists which pays lease fees to the 2 215 767 14 441 929 16 657 696 Little Vumbura Okavango Community Trust (OCT).
Banoka Bush, Private sector-community Wilderness pays the Khwai Development Trust (KDT) an 2 821 154 4 410 716 7 231 870 Khwai Discover, partnership annual lease fee. Khwai Adventurer, Wilderness Tented
Moremi Tented, Private sector-community Wilderness pays the Sankuyo Community Development 205 629 2 152 819 2 358 448 Santawani partnership Trust an annual lease fee. Congo Ngaga Private sector-NGO- 5% of accommodation revenue is paid to the Odzala- 543 000 2 704 463 3 247 463 Lango community partnership Kokoua Foundation – a partnership between African Parks and the Congolese Government. African Parks Network is currently in consultation with the 70 local village associations to identify socio-economic development needs which will lead to the provision of education and health facilities in the villages surrounding the park.
Damaraland Formal joint venture 20% of ownership was transferred to the community 541 410 1 666 522 2 207 932 Namibia annually from years 10 to 15 of the partnership. Once they owned 100% of the camp, the community sold 60% back to Wilderness. The community currently has the remaining 40% equity stake.
Doro Nawas Formal joint venture 55:45 partnership between Wilderness and the Doro 515 957 1 781 430 2 297 387 !Nawas Conservancy.
Desert Rhino, Public-private-community Wilderness operates Desert Rhino Camp and Hoanib 944 241 1 456 652 2 400 893 Hoanib Skeleton partnership Skeleton Coast Camp and pays a minimum fee per Coast annum of N$1 200 000 (P1 025 641) to the Big 3 (Torra, Sesfontein and Anabeb) Conservancies.
Serra Cafema Private sector-community Wilderness pays the Marienfluss Conservancy 8% of 865 530 2 153 444 3 018 974 partnership turnover as well as a fixed annual fee. South Africa Pafuri Walking Public-private-community A tripartite agreement between Wilderness, SANParks 267 971 519 845 787 816 Trails** partnership and the Makuleke community, where Wilderness pays 8% of turnover to the community.
Rocktail Beach Public-private-community A partnership between Wilderness and the KwaMpukane 827 978 2 365 541 3 193 519 partnership, including Community Trust. A BEE partner owns 10% and 17.5% a joint venture with the is owned by KwaMpukane Community Trust. 8.5% of community revenue, as well as annual turtle viewing fees, are paid to iSimangaliso Wetland Authority.
Total 9 748 637 33 653 361 43 401 998
* Staff costs include wages, bonuses, training, uniform, transport and food ** Pafuri Walking Trails was operational for six months
70 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 71 About Wilderness Sustainability report Corporate governance Annual financial statements 71 | P Total 787 816 3 193 519 7 231 870 3 018 974 3 247 463 2 297 387 2 207 932 payments 2 358 448 2 400 893 16 657 696 43 401 998 P Staff Staff costs* 519 845 4 410 716 1 781 430 2 152 819 2 153 444 2 365 541 1 666 522 1 456 652 2 704 463 14 441 929 33 653 361 P value value Annual 541 410 267 971 515 957 944 241 865 530 827 978 205 629 543 000 2 821 154 2 215 767 9 748 637 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Total Wilderness pays the Marienfluss Conservancy 8% of pays the Marienfluss Conservancy Wilderness annual fee. as a fixed as well turnover SANParksWilderness, A tripartite between agreement pays Wilderness where and the Makuleke community, to the community. 8% of turnover and the KwaMpukane Wilderness A partnership between A BEE partner 10% and 17.5% Trust. owns Community 8.5% of Trust. Community KwaMpukane by is owned as annual turtle as well paid viewing fees, are revenue, Authority. Wetland to iSimangaliso 55:45 partnership between Wilderness and the Doro and the Doro Wilderness 55:45 partnership between !Nawas Conservancy. Desert operates Wilderness Rhino Camp and Hoanib Skeleton Coast Camp and pays a minimum fee per annum of N$1 200 000 (P1 025 641) to the Big 3 (Torra, Sesfontein and Anabeb) Conservancies. Wilderness pays the Sankuyo Community Development Community Development pays the Sankuyo Wilderness an annual lease fee. Trust is paid to the Odzala- 5% of accommodation revenue – a partnership Foundation African between Kokoua African Parks and the Congolese Government. Parks in consultation with the Network is currently 70 local village associations to identify socio-economic needs which will lead to the provision development of education and health facilities in the villages the park. surrounding to the community was transferred 20% of ownership 10 to 15 of the partnership. years Once annually from the community sold 60% 100% of the camp, they owned has the The community currently Wilderness. back to equity stake. 40% remaining Details fees to the exists which pays lease A joint venture (OCT). Trust Community Okavango (KDT) an Trust pays the Khwai Development Wilderness annual lease fee. Private sector-community sector-community Private partnership Public-private-community partnership Public-private-community partnership, including with the a joint venture community Formal joint venture Formal Public-private-community partnership Formal joint venture Formal Private sector-community sector-community Private partnership sector-NGO- Private community partnership Nature of engagement Nature joint venture Formal sector-community Private partnership Camp Rocktail Beach Rocktail Doro Nawas Doro Desert Rhino, Hoanib Skeleton Coast Cafema Serra Walking Pafuri Trails** Moremi Tented, Tented, Moremi Santawani Ngaga Lango Damaraland Vumbura Plains, Vumbura Vumbura Little Banoka Bush, Khwai Discover, Khwai Adventurer, Tented Wilderness Staff costs include wages, bonuses, training, uniform, transport costs include wages, bonuses, training, and food Staff for six months was operational Trails Walking Pafuri Country * ** Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 70 Community continued
Children in the Wilderness Table 15: Children in the Wilderness statistics for the reporting period (CITW) – Sustainable Number of Total conservation through Number Number children costs of leadership development of CITW of Number of attending programme Country camps children volunteers Eco-Clubs (in BWP) Children in the Wilderness (CITW) is a non-profit organisation supported by Botswana 6 160 30 503 737 871 Wilderness to facilitate sustainable GMTFCA* 0 – – 120 8 163 conservation through leadership Limpopo 2 32 24 – 85 989** development and to provide Malawi 2 60 28 850 526 643 educational support to rural children in Africa. Namibia 3 62 20 70 776 482 South Africa 3 40 24 320 340 806 Our CITW programme is an environmental and life skills education Zambia 1 30 13 173 148 472 programme for children. It focuses on Zimbabwe 5 156 32 235 445 033 the next generation of decision-makers, Total 22 540 171 2 271 3 069 459 inspiring them to care for their natural heritage and to become the custodians * Greater Mapungubwe Transfrontier Conservation Area. ** Does not include camp opportunity costs which were included in previous reports for Limpopo. of these areas in the future.
Eco-Clubs Eco-Mentor training candidates for the scholarship and The CITW ground team operates Our Eco-Mentor training aims to internship programme. Eco-Clubs in the various communities develop local community members These programmes, previously with which we engage. The Eco-Clubs, and Wilderness Safaris camp staff called Environmental Stewardship which take place at rural schools, by upgrading skills, increasing Programmes (ESP), have been running follow a structured curriculum and, environmental understanding and in Botswana since 2008, where they depending on the region, take place enabling them to better implement have hosted 144 children to date, and either weekly or monthly. Eco-Clubs give school and village environmental they will now be introduced in other all learners who are interested in the projects and initiatives. This regions as well. This will allow the environment a chance to meet, learn, project assists in addressing the programme to grow with the children discuss and expand their knowledge critical teaching skills shortage in and continue to provide them with of environmental issues. We are also environmental education in southern environmental education and support. able to reach more children in the Africa. Once trained, mentors are able communities and on a more regular to host Eco-Clubs in the local village Scholarship programme basis. Children participating on the schools and assist Eco-Club members CITW camps are usually selected from in implementing environmental In almost all the areas where we Eco-Clubs. projects in their villages. operate primary education is free, but secondary schooling usually has Annual camps Youth Environmental Stewardship (YES) a fee attached to it. For this reason, a large majority of children will only A Wilderness or partner camp is closed programme ever complete their primary schooling. for a few days each year, and 12 to 24 The YES programme focuses on Through our Eco-Clubs and CITW children between 10 and 17 years old, children who show commitment and Camp programme we are able to pre-selected from the Eco-Clubs in potential and have been identified identify children who are doing well neighbouring schools and communities, on annual camps as showing a academically but whose parents are are hosted in the camp. The Camp particular interest in conservation. unable to send them on to secondary Director, with a full complement of The programme curriculum is an school. Our Scholarship programme volunteers and mentors, runs an extension of concepts introduced in aims to provide these children with educational and fun-filled programme. Eco-Clubs and at camp, with a greater an opportunity to complete their A structured curriculum is followed in all focus on career guidance and further schooling and to give them hope regions in order to ensure sustainability, environmental education. These camps and inspiration for their future. The continuity and to allow for are usually smaller, with fewer children programme provides funding for the measurement and assessment. Since attending, allowing for focused work necessary school fees and, as often as 2001, over 5 600 children have been groups and increased participation possible, we try to assist with uniform, hosted in our camps in seven southern by all children. The YES programme stationery, and other schooling needs African countries – Botswana, Namibia, also enables mentors to spend more as well. Funding for this programme Malawi, South Africa, Seychelles, time with the children and identify comes largely from our guests and Zambia and Zimbabwe.
72 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 73 About Wilderness Sustainability report Corporate governance Annual financial statements 73 | hospitality/ conservation Career in tourism/ Career Integrated Annual Report 2015 Holdings Limited Integrated Wilderness activities. and/or Eco-Clubs internships stewardship stewardship scholarships Annual camps interest in conservation. in conservation. interest Tertiary education Tertiary children with commitment and with commitment children The YES focuses onThe programme on annual camps as showing an on annual camps as showing Youth environmental Youth potential who have been identified been potential who have games, practical sessions and wildlifegames, practical fun-filled programme, including lessons, fun-filled programme, for a three-day educational and educational the camp for a three-day between 10 and 17 years old are hosted in old are 10 and 17 years between for a few days each year, and 12-24 children for a few days each year, A Wilderness Safaris/PartnerWilderness camp is closed A Children participating Eco-Clubs. Children selected from on the camps are Throughout the year, we operate Eco-Clubs in rural schools in the Eco-Clubs in rural operate we the year, Throughout learn, discuss and expand their knowledge of environmental issues. of environmental learn, discuss and expand their knowledge the environment a chance to meet, in the environment all learners interested providing communities with which we work. They follow a structured curriculum, a structured They follow work. communities with which we Other careers Mentor and understanding and aims to develop local aims to develop village environmental village environmental community members, implement school and and Wilderness Safaris Wilderness and projects and initiatives. and initiatives. projects enabling them to better including local teachers camp staff by upgrading upgrading camp staff by Our Eco-Mentor training teacher training their skills in environmental their skills in environmental Current CITWCurrent Programme Figure 31: Current CITW Programme 31: Current Figure Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 72 Community continued
agents, as well as other partner NGOs, Empowering Women Project on Protected Areas (WCPA) Tourism corporates, etc. As one of our community development and Protected Areas Specialist Group projects, CITW has, together with (TAPAS). Overall, the CITW programme and Wilderness Safaris, initiated an curriculum: TAPAS and Wilderness Safaris share Empowering Women Project in a belief in the principles of protecting • Practises and teaches Botswana, assisting a local community the world’s pristine wilderness areas environmental education; women’s group with start-up capital through responsible tourism while • Exposes the children to new and business guidance. sharing the benefits with communities. experiences and new friends; For the pilot project, Wilderness Through this role we are able to share • Uses teambuilding and Safaris’ Community Development knowledge with others working in communication games and other Liaison in Botswana, Mary Hastag, tourism and conservation around the educational tools to help build together with Regional CITW Director, world. While continuing her day-to- self-esteem and life skills, and Dr Susan Snyman, are working day work for Wilderness Safaris, Sue strengthens the children’s capacity together with the already established also drives the TAPAS Community to cope with challenges in life; Shashe Women’s Group at Shashe Working Group which aims to provide • Inspires the children to continue Primary School in Maun. best practice guidelines for tourism with their education; stakeholders who engage with • Teaches the children skills, crafts Through this project, we offer the communities living in and around and sports; support and guidance rural women protected areas. require to lay the foundations of their • Increases awareness and own businesses, thereby creating knowledge of overall health and sustainable economies in these nutrition; and communities. The programme consists • Develops future leaders. of applications, discussions as to marketing and distribution of products, Community development projects etc, as well as Wilderness providing The majority of our community financial guidance and training development projects are funded either in business and marketing skills. by cash, in-kind or specific donations Ongoing support is also provided to from guests, NGOs, Wilderness camps the Shashe Women’s Group, with Mary or offices, and various corporates. meeting with the team every week to Wilderness administers and distributes discuss their progress, as well as any these donations as specified, or as challenges they are facing. She also required. Staff and transport used in assists them in buying the necessary the management and implementation supplies to get their businesses off the of these projects also form part of our ground. in-kind donation. Towards the end of 2014, the women Our donations to communities received their first big order from increased from P2.04 million in 2014 Wilderness Safaris Botswana, to to P2.58 million in 2015. Fundraising supply placemats and various other is done largely by each of the goods for our camps. They have since individual countries, though funds received a number of other orders and are also raised through the Wilderness the programme has been extended to Wildlife Trust and for CITW through three more villages in Botswana, with the annual Nedbank Tour de Tuli plans to introduce it into other regions mountain bike event. A number of our as well. community projects are partnerships with NGOs and other stakeholders, Sharing knowledge and who assist with fundraising, logistics and management of some of the building capacity projects. In 2014, Wilderness Safaris’ Group Community Development Manager, Dr Susan Snyman was elected Vice Chair of the IUCN World Commission
74 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 75 About Wilderness Sustainability report Corporate governance Annual financial statements 75 | curriculum materials, publications, curriculum materials, in the next etc. should be completed reporting as growth period, as well and training in the CITW Eco-Mentor will Focus scholarship programmes. awareness also be on increasing of CITW and other community staff, amongst initiatives development interested guests, agents and other stakeholders. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above: Annual Nedbank Tour de Tuli mountain bike event. Tuli de Tour Annual Nedbank Above: Botswana. training, Wonderbag Mary Hastag conducting Left: Going forward Community The finalisation of the for 2015- Strategy Development effective requires 2019 now all the implementation across Continued consolidation regions. and of community development projects Wilderness in the Children with ongoing is also required, and in measurement improvements CITW reporting. Finalisation of various Total Total (in P) 47 377 46 693 161 088 124 855 230 304 1 970 338 2 580 655 donations Largely German Embassy funded, managed Largely CITW with logistical supportby CAWS from Malawi. Mvuu Camp and H.E.L.P. by Grand raised includes amounts This figure (GCF), with CITW assisting Foundation Circle with the selection, implementation and initiated with management of all projects these funds. Country Botswana Namibia South Africa Zambia Malawi* Zimbabwe** Total * ** Table 16: Summary of community development Table donations project Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 74 CULTURE
Culture is a multifaceted dimension that governs respect for the culture of all our employees, as well as the remote rural communities surrounding the conservation areas in which we operate. To a large degree, Culture gives context to the other three Cs, as it impacts on and is affected by all the other Cs.
76 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 77 About Wilderness About Sustainability report Corporate governance Annual financial statements
Mukuni village, Zambia.
76 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 77 Culture
We respect and promote our unique Wilderness culture, as well as those of our employees and neighbouring rural communities. By meaningfully incorporating culture into our operations and guest activities, we hope to positively impact a global culture of respect and care for the environment.
The aspects discussed in the Culture the middle of the reporting period, we games, clothing, sport, singing and chapter are considered material due to: hired an anthropologist to examine dancing of the various different • The potential impact that they the socio-cultural impacts of cultural ethnic groups. Cultural diversity gives could have on our guest operations tourism on host communities, and to character and uniqueness to our camps and our guest experiences. directly and the associated identify opportunities for improving guest experiences and our interactions reputation opportunities and risks; with local communities. This new role We engage with more than 40 different and entails direct engagement with host ethnic groups, identified among our • The possible direct and long- ethnic groups, to define best practices staff and host communities: term impacts of tourism on host for incorporating culture into tourism • Botswana: BaYei, haMbukushu, communities and their cultures. and ensure that this is done in an baSarwa, baKalanga, baKgalagadi, ethical, meaningful, respectful and Xhanakwe, baTswana and All the aspects covered in this chapter sustainable way. European; are managed by country-level staff • Congo: BaBaka, baBayaka, within the seven countries in which we In order to achieve this, we need an baKongo, Europeans of French operate, with support and advice from understanding of the different ethnic descent; Group resources. In order to ensure groups within our regions, and the host • Namibia: BaHerero, baHimba, ethical relationships with the external communities with whom we interact. Damara, Nama, Ovambo, communities and staff with whom Socio-cultural surveys are currently Riemvasmaker and European; we engage, regional staff and Group underway to achieve this. Encouraging • Seychelles: Seychellois and resources meet regularly through visits our staff to be proud of their culture European; and annual Regional Workshops. and to integrate this into guest activities allows our guests and other • South Africa: Afrikaner, English/ We also have an Ethics Charter and staff to learn about Africa’s diversity. European, Indian, amaNdebele, Codes of Conduct for Cultural Tourism baPedi, baSotho, emaSwati, to ensure that all cultural or ethnic We understand culture to be a baTswana, baTsonga, vaVenda, interactions increase knowledge, raise celebration of the diverse histories amaXhosa and amaZulu; awareness and enrich all involved. In and traditions, art, beliefs, languages,
Key performance indicators (KPIs) Anthropologist Cultural maps The appointment of an anthropologist Rollout of a cultural map for Namibia, as Group Researcher and Cultural and the development of maps for Coordinator Botswana, Zambia and Zimbabwe Heritage Day Social media Annual Wilderness Heritage Day Publishing various cultural blogs on celebrated in all countries, camps and Wilderness Safaris’ website and social offices media Finalisation of Ethics Charter Finalisation of the Wilderness Safaris Ethics Charter and Codes of Conduct for Cultural Tourism
78 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 79 About Wilderness Sustainability report Corporate governance Annual financial statements 79 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above: Himba, Namibia. Above: office, Johannesburg Heritage Day, Wilderness Annual Left: South Africa. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 78 Culture continued
• Zambia: BaKaonde, maChewa, Wilderness Safaris Ethics Charter cultures in the countries that they visit, amaNgoni, baTonga, baBemba, and Codes of Conduct for Cultural necessitated the development of an baLozi, and European; Tourism Ethics Charter and Codes of Conduct • Zimbabwe: AmaNdebele, baTonga, Cultural tourism is about immersion for Cultural Tourism. This document maShona, baTonga, baLozi, in, and enjoyment of, the lifestyle of serves to detail the kind of community baKalanga and European. local people, the local area, and what engagement and cultural interaction constitutes its identity and character. that Wilderness Safaris would like to At least 28 of these ethnic groups are The increasing number of tourists, promote, to ensure that there is no represented in our staff body. and their concomitant desire to degrading or exploitation of people and engage with local communities and their cultures.
Above: Staff member weaving a basket, Botswana. Top left: Village visit, Botswana. Left: Socio-cultural research, Zimbabwe.
80 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 81 About Wilderness Sustainability report Corporate governance Annual financial statements 81 | How do we incorporate How do we incorporate culture? consists of a number of Culture many are dimensions and there these ways to celebrate different our business. First and through staff from employing foremost, each country in ethnic groups different into the C directly brings the Culture staff here, From camps and offices. day- through their culture celebrate with colleagues to-day interactions and guests, singing, dancing and storytelling in the camps, allowing them to educate and inform about their and customs. traditions activities, we tourism cultural Through our guests a high-quality aim to give experience which brings satisfaction as greater and enrichment, as well of natural and appreciation knowledge heritage, while at the same and cultural an understanding and time promoting of local communities. Our appreciation tourism is for cultural primary objective the and significance its communicate to need for its maintenance to the host to staff and to guests. community, educational, biophysical, ecological educational, biophysical, The sector and aesthetic dimensions. drivers can be one of the foremost a providing exchange of cultural not personal experience, including but also only past traditions, life insight into the contemporary and society of others. for tourism to be sustainable In order as as well it should bring direct, to host communities benefits indirect, an important means and provide to for communities and motivation maintain their heritage for and care The cultural practices. and cultural of heritage of a country is the result and, therefore, its historical evolution plays an important in determining role its identity. globalisation, At a time of increasing maintenance, the protection, of and presentation interpretation diversity the heritage and cultural of any particular is place or region an important challenge for people everywhere. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness the communities with whom we whom we the communities with engage; and aspirations the values Respect and of local host communities services and to provide strive contributes facilities in a way that pride, to community identity, of life of aesthetics and the quality residents; in a tourism development Achieve way which harmonises economic and with the protection objectives cultural enhancement of natural, and aesthetic heritage; social and cultural Acknowledge of all people, traditions/practices their worth;and recognise Align all tourism activities with and local customs, laws, practices traditions; the equality of men and Respect human and women and promote rights – both individual and cultural collective; outcomes positive to achieve Strive impacts on and minimise adverse the heritage and lifestyles of host communities; of the conservation Promote from environment natural for curios and degradation artefacts local while promoting imports; foreign over crafts of Contribute to the protection of local, historical, sites which are spiritual or archaeological cultural, importance, of located in the areas operation; together with communities Work on, and to help them to reflect respect to a define their goals with vision; and tourism development Help communities to gain a better understanding of tourists and the and enable them tourism industry, to optimise the benefits that flow tourism. to them from • • • • • • • • • • Why do we incorporate Why do we incorporate culture? has become an increasingly Tourism complex phenomenon, with political, economic, social, cultural, Ensure a high-quality experience a high-quality Ensure which brings satisfaction and enrichment to guests, as well and knowledge as greater and of natural appreciation tourism heritage. Cultural cultural an understanding must promote of the local and appreciation communities and their culture; identity which Uphold a corporate authentic experiences, provides and the values while respecting wishes of the people whose culture partform history and cultural the of tourism experience; Maintain, and continuously marketing and develop which strategies promotional contribute to both environmental awareness; and cultural tourism development Encourage that is compatible with local and lifestyles; and values culture, economically and that is socially, sustainable; environmentally an Maintain and encourage for, and respect of, appreciation and aesthetic cultural all natural, heritage among our guests, stakeholders, and within staff, Toward the end of the reporting period, Toward of the Ethics version a comprehensive Charter was and Codes of Conduct distribution for finalised and prepared highlighting among staff and guests, tour during- and post-cultural pre-, in host and activities procedures business communities, including information etiquette. It also includes means to us, and why on what culture into culture incorporate we and how the business. The community engagement projects into by and experiences entered must all be sustainable: Wilderness ethically ecologically, environmentally, that we This requires and socially. and consult engage effectively identify, stakeholders for with all the relevant destination, activity or any new project, business. It is vital that their support is the outset. obtained from Wilderness The main goals of the Safaris Ethics Charter and Codes of to: are Tourism Conduct for Cultural • • • • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 80 Culture continued
Below is a list of the main ways culture to our Ethics Charter and Codes of • Build self-esteem, confidence is integrated into our business: Conduct for Cultural Tourism. We also and pride in one’s community and • Traditional nights: The majority of started developing a Country Culture oneself; Wilderness camps have traditional Booklet that will provide more • Strengthen communities through evenings where guests experience detailed country-specific information uniting them in a common cause, local culture through dance, relating to cultural activities, practices especially through joint ventures; and diversity. singing, storytelling and local • Internalise local fashions in art, food. In many instances, dinner clothing, jewellery, language and menus are announced in the local Potential socio-cultural music; language; impacts • Revitalise unique cultural practices, • Traditional design and décor: Ecotourism can have varied socio- arts, crafts and stories; Where possible and practical, cultural impacts, some of which may • Promote social and rural we attempt to use traditional be ambiguous, with some people development through employment architecture, building methods perceiving impacts as positive, and creation, income redistribution and and materials in camp design and others as negative. Our aim is to poverty alleviation; and construction. We also attempt promote positive impacts and mitigate to use local artefacts, such as • Lessen the migration of youth to negative ones. We cannot prevent urban areas, and thereby assist traditional masks and woven cultural change or some form of basketry, in our camp décor; in keeping rural families closer commodification of culture, but feel it together through education and • Cultural visits: Where the local is important to aid sustainable rural employment. community is accessible to the development by promoting positive camp, local village visits and tours interactions. It is also important Conversely, below are some of the are encouraged and organised in to educate our guests to respect negative socio-cultural impacts that line with the Wilderness Ethics the various cultural groups and to may arise and are globally contested in Charter and Codes of Conduct for encourage our staff to celebrate their any form: Cultural Tourism. Such visits occur heritage, traditions and ethnic diversity. • Western influence on cultures: in most countries and their nature language, clothes, behaviour, food, varies by location; Cultures are continuously changing and adapting. Some socio-cultural values and interests; • San cultural walk: At Kalahari changes may, therefore, be a natural • Negative transitions away from Plains Camp in Botswana, guests progression, whereas others may be traditional lifestyles, including are encouraged to go on a walk caused by increased contact with other alcohol abuse, child labour, with a staff member who is also cultures and their associated different littering, poaching; a local community member. values. Changes resulting from cultural • Negative transitions in values, Guests are educated on traditional tourism are both negative and positive, moral conduct, community hunting and subsistence methods; and through research we can try structural organisations and and to reduce or minimise the negative practices; • Social soccer: CITW promotes impacts. soccer/football clinics to recognise the influence the game has in host Social impacts are largely the result communities. In Africa, soccer/ of the immediate effects of cultural football is played in almost every tourism on host communities, their village, no matter how remote. livelihoods and the way they live, whereas cultural impacts occur in the long term and may include changes in Cultural maps social value/morals, behaviours and To highlight culture and provide our attitudes. guests and staff with the opportunity Below is a list of positive socio- to learn more about the diverse cultural impacts that we believe our cultures and ethnic groups in Africa, business can and does have on local we have been developing cultural communities: maps for each country. These include a brief description of each of the • Enhance the cultural aspects of an main ethnic groups, as well as their area, through continued interest history and traditions. The map also in local, cultural and historical includes photographs of cultural lifestyles; aspects guests may encounter during • Promote greater awareness and visits to our camps, as well as a link acceptance of other cultures;
82 | Wilderness Holdings Limited Integrated Annual Report 2015 About Wilderness Sustainability report Corporate governance Annual financial statements 83 | Continue data collection for the Continue data collection project research socio-cultural Booklet; and Country Culture closely with the ‘Culture Work each country where in Champion’ cultural to develop operate we This person will assist objectives. and work with the anthropologist in compiling all the necessary information on the various This person would cultures. for ensuring also be responsible is collateral that all the culture distributed in their country and activities are that the cultural camps; and in the offered ways Continue to find innovative to further the Culture integrate art,C into our business through sport, etc. competitions, Integrate the Ethics Charter the Integrate and Codes of Conduct for Cultural practice; Wilderness into Tourism • • • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Above: Above: Cultural evening at Vumbura Plains Camp, Botswana. Plains Camp, Vumbura at evening Cultural Above: Above: Botswana. Plains Camp, experience at Kalahari Cultural Left: Increase cultural collateral for collateral cultural Increase such as the Ethics guests and staff, Charter and Codes of Conduct for Country Cultural Tourism, Cultural news; Booklet and regional Seek the best mechanisms for guest into of culture integration and staff day-to-day activities; data Conduct comprehensive activities and collection on cultural in our geographic ethnic groups scope and engagement areas; Going forward ahead to the next reporting Looking plan to: period we • • • The performers may sometimes include The performers may sometimes are and the dance groups children However, paid for the performances. by not employed are since children not exploited and are Wilderness dancing (i.e. during the traditional missing school, do not not they are perform dance late at night, and they do not fall into the voluntarily), is There category of child labour. to no need for measures therefore labour and no eliminate child or forced incidents to report in the period under consideration. ‘Demonstration effect’, where effect’, where ‘Demonstration of locals imbibe the behaviours negative tourists and experience shock; culture the impacts from Resultant on host effect’ ‘demonstration to petty communities that lead crime and socially negative envy or behaviours, for example entitlement cultures; Economic and social competition community members, between which could lead to disharmony; and Commodification of cultures. Forced child labour Forced location of most Due to the remote the majority of operations, Wilderness communities from recruited staff are the conservation living in and around situated. our camps are where areas the legal working above All staff are age limit in the countries of operation and no child labour is employed. As part tourism of the cultural experience, a number of the camps dancing and other offer traditional These are activities, such as singing. on selected village visits. also available • • • • avoid constantly attempts to The Group impacts on staff and mitigate negative and guests. Main: Guided walk, Sossusvlei, Namibia. Right: High tea, Kings Pool Camp, Botswana. Above: Sunset walk, North Island, Seychelles. Top right: Log pile hide, Little Makalolo Camp, Zimbabwe.
84 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 85 About Wilderness Sustainability report Corporate governance Annual financial statements 85 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Corporate governance Corporate Report Committee of the Audit and Nomination Committee Report of the Remuneration Report of the Social, Ethics and Sustainability Committee (GRI)Global Reporting Initiative G4 content index 94 95 99 100 86 Corporate governance governance Corporate Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 84 Corporate governance
The Board believes that excellent but the wider environment such as Officer. Amihai Azoulay is the Chief corporate governance is fundamental guests, suppliers and employees, to Financial Officer and Derek de la Harpe to ensuring a sustainable and name a few. A representative list of our is the Commercial Director and Chief successful business. The Company stakeholders is included on page 18 Sustainability Officer. Sidney Mganga complies fully with the guidelines of of this report. remains in the position of Group the BSE Code of Corporate Governance. Company Secretary. In addition, although listing on the BSE This report is prepared in compliance only requires compliance with King II, with the principles of King III. Where Rolf Hartmann resigned from the Board the Company has voluntarily adopted the directors have found it impractical on 20 May 2015 and the Board and the the principles of King III. to apply certain recommended Company are most grateful for his long practices, the rationale is explained service to the Company and his hard Compliance with King III under the relevant section. work and wise counsel over the years. The Company believes that compliance Leadership and oversight The Board is chaired by Parks Tafa who with recognised best practices will is supported by Michael Tollman as provide superior levels of performance The Company has a unitary board Deputy Chairman. Post the year end, in terms of sustainable returns to all structure. The Wilderness Holdings Limited Board stakeholders. The Company takes into and committees comprised: Keith Vincent, the former Chief consideration not only the interests Operating Officer, is the Chief Executive of the Company and its shareholders
Board of Directors
Non-executive directors Chairman Executive directors Charles de Fleurieu Parks Tafa Chief Executive Officer Parks Tafa Keith Vincent Gavin Tollman Deputy Chairman Michael Tollman Commercial Director and Chief Independent non-executive directors Sustainability Officer Rolf Hartmann (resigned 20 May 2015) Lead independent director Derek de la Harpe John Hunt Roux Marnitz Malcolm McCulloch Chief Financial Officer Marcus ter Haar Ami Azoulay Michael Tollman Jochen Zeitz
86 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 87 About Wilderness Sustainability report Corporate governance Annual financial statements 87 | a legal adviser to the Group. Although a legal adviser to the Group. the Chairman cannot be classified as independent in terms of the is of the criteria, the Board governance expertise,view that he brings valuable experience and skills to the Company independent and will exercise judgement. Furthermore, in accordance of King III,with the recommendations lead Marnitz is a non-executive Roux (LID)independent director whose leadership main function is to provide without and advice to the Board, of the the authority from detracting Chairman, when the Chairman has a The LID also leads conflict of interest. those discussions which deal with the succession of the Chairman and the performance appraisal. Chairman’s responsibilities fulfil their To unrestricted have directors adequately, access to timely financial and other documents and information, records to the Group. relating Remuneration and Nomination Committee and Nomination Remuneration Michael Tollman (Chairman) Tollman Michael (appointed 20 May 2015) HartmannRolf (Chairman) 20 May 2015) (resigned John Hunt ) (appointed 20 May 2015 Marnitz Roux By invitation Chairman of the Board office management Corporate Manager Human Resources Group Social, Ethics and Sustainability Committee Jochen Zeitz (Chairman) Jochen Zeitz Dr Holly Dublin de la Harpe Derek John Hunt Chris Roche By invitation office management Corporate Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Board committees Board and internal controls, as well as the as well and internal controls, nomination, orientation and evaluation of directors. on draw directors The non-executive their experience, skills and business impartialacumen to ensure and viewpoints in decision-making objective The of conduct. and standards processes considers the mix of technical,Board social, entrepreneurial, environmental, financial and business skills of the to be balanced, thus enhancingdirectors of the Board. the effectiveness is the Chief Executive Vincent Keith role of this The separation Officer (CEO). that of the Chairman ensures of CEO from anya balance of authority and precludes unfettered exercising from one director of decision-making. powers Parks The Chairman of the Board, is although non-executive, Tafa, not independent in terms of King III because he acts as recommendations Risk Committee Malcolm McCulloch (Chairman) Hartmann 20 May 2015) Rolf (resigned Marnitz Roux Tollman Michael Vincent Keith By invitation office management Corporate Safety Review Board Safety Review Roux Marnitz (Chairman) Roux de la Harpe Derek Friedman Russel Wel der van Richard By invitation Brian Cartwright Ian du Rand Goatley Ron Vincent Keith Wassung Mike Woodrow Grant Audit Committee Malcolm McCulloch (Chairman) Malcolm McCulloch (Chairman) (appointed 20 May 2015) HartmannRolf (Chairman) 20 May 2015) (resigned ter Haar Marcus Tollman Michael By invitation Chairman of the Board office management Corporate External audit Investment Committee Investment Charles de Fleurieu (Chairman) de la Harpe Derek ter Haar Marcus Tollman Gavin By invitation Ami Azoulay Vincent Keith The Board retains full and effective full and effective retains The Board and monitors the Group over control management and the executive decisions in the subsidiary companies. assumes overall The Board and its for the Group responsibility activities, including risk management is also The Board and governance. of for setting the direction responsible the establishment through the Group and key policies. objectives of strategic a Board is guided by the Board Finally, charter and is supported by in its role committees detailed above. the Board charter its The Board how regulates The business is to be conducted. charter sets out the responsibilities members collectively. of the Board the charter confirms specifically, More for the responsibility the Board’s plans, monitoring adoption of strategic performance and of operational management, determination of policies the integrity to ensure and processes risk management of the Group’s Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 86 Corporate governance continued
Board meetings proposals for capital expenditure For ease of reference, the attendance, and investment. Additional meetings independence, classification and A minimum of four Board meetings are convened on an ad hoc basis length of service of directors has been are scheduled each financial year to to consider extraordinary items of consolidated in the table below: consider strategic and key issues, importance which may require urgent financial matters, operational attention. performance and any specific
Years’ service Remuneration Social, Ethics and (rounded Audit Committee Investment Committee and Nomination Committee Risk Committee Sustainability Committee Safety Review Board to the Board nearest meeting year) attendance Member Attendance Member Attendance Member Attendance Member Attendance Member Attendance Member Attendance
Non-executive directors
Independent
R Hartmann (resigned 20 May 2015) 5 4/4 4 4/4 4 3/3 4 3/3
J Hunt 5 4/4 4 1/2
R Marnitz 5 4/4 4 3/3 4 3/3 4 4/4
M McCulloch 10 4/4 4 3/3
M ter Haar 5 3/4 4 3/4 4 3/3
M Tollman 5 4/4 4 3/4 4 3/3 4 2/3
J Zeitz 5 3/4 4 2/2
Non-independent
P Tafa 5 4/4
G Tollman 5 2/4 4 3/3
C de Fleurieu 3 3/4 4 3/3
Executive directors
K Vincent 10 4/4 3/4 3/3 2/3 4 3/3 1/2 2/4
D de la Harpe 5 4/4 4/4 4 2/3 3/3 3/3 4 2/2 4 4/4
A Azoulay 2 4/4 4/4 3/3 3/3 2/3
Other
C Roche N/A 4 2/2
Dr H Dublin N/A 4 1/2
R van der Wel N/A 4 4/4
R Friedman N/A 4 2/4
88 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 89 About Wilderness Sustainability report Corporate governance Annual financial statements 89 | 4/4 4/4 2/4 4/4 2/4 Attendance 4 4 4 4 Member Safety Review Board Safety Review 1/2 1/2 1/2 2/2 2/2 2/2 Attendance Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 4 4 4 4 4 Social, Ethics and Member Sustainability Committee 3/3 2/3 3/3 3/3 3/3 3/3 2/3 Attendance 4 4 4 4 4 Risk Committee Member 2/3 3/3 3/3 3/3 3/3 3/3 Attendance 4 4 4 Remuneration Member and Nomination Committee 3/3 3/3 3/3 3/3 3/3 2/3 Attendance 4 4 4 4 Member Investment Committee Investment 3/4 4/4 4/4 4/4 3/4 3/4 Attendance 4 4 4 Audit Committee Member 4/4 3/4 2/4 4/4 4/4 4/4 4/4 4/4 3/4 3/4 4/4 4/4 4/4 Board meeting attendance 3 5 5 2 5 5 5 5 5 5 5 10 10 N/A N/A N/A N/A year) to the nearest (rounded (rounded Years’ service Years’ Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | Executive directors Executive Vincent K C de Fleurieu G Tollman G D de la Harpe A Azoulay Other C Roche Dr H Dublin Wel der R van R Friedman Non-executive directors Non-executive Independent R Hartmann 20 May 2015) (resigned J Hunt R Marnitz M McCulloch M ter Haar J Zeitz Non-independent Tafa P M Tollman M 88 Corporate governance continued
Independence of directors recommendation of the Remuneration All directors have access to the advice and Nomination Committee. of the Group Company Secretary The independence of directors is and, through the office of the Group reviewed annually by the Remuneration Company Secretary, to independent and Nomination Committee following a Induction of directors professional advice, at the Company’s detailed analysis of the circumstances New directors are provided with an expense. of all independent non-executive induction programme and materials directors. The Remuneration and which deal with directors’ fiduciary Nomination Committee has satisfied duties and introduce the directors Conflicts of interest itself that these directors meet the to the concept of the 4Cs platform. On a quarterly basis, the Company criteria for independence in terms of The Board believes that sustainable actively solicits from its directors King III. business practices in the dimensions details regarding their external of conservation, community, culture shareholdings and directorships Board evaluation and commerce form the sustainability which potentially could create conflicts of interest while they serve An evaluation was undertaken in platform for the business. as directors on the Wilderness Board. November 2011 in which the directors The declarations received by the reviewed the performance of the Board Director training and directors are closely scrutinised by as a whole, through a questionnaire- development both the Chairman and the Group based process. The results confirmed that the Board operates effectively. An All directors are expected to keep Company Secretary and are tabled evaluation was not conducted during abreast of changes and trends in at the beginning of each quarterly the 2015 financial year. It is intended to the business and in the Group’s Board meeting. Where a conflict improve upon the evaluation process environments and markets. arises, directors are required to recuse and to include self-assessments of the themselves from the discussions. As Board meetings are held at site at least Board committees in the current year. far as possible the Company requires once a year to familiarise the directors directors to avoid any potential with the operational and environmental conflicts of interest. Newly appointed directors aspects of the business. Training In terms of the Company’s constitution, programmes on directors’ duties and Share dealings new directors may only hold office until corporate governance are available to The Company has a policy to regulate the next annual general meeting at the directors on request. which time they will be required dealings in the Company’s shares by its directors and applicable employees. to retire and offer themselves for Group Company Secretary re-election. There were no new No Group director or employee may directors appointed during the current The Group operates in seven countries deal, directly or indirectly, in the financial year. and company secretaries are appointed Company’s shares on the basis of in each country to ensure all national previously unpublished, price-sensitive statutory requirements are adhered information and during certain “closed Rotation of directors to. The Group Company Secretary is periods”. The closed periods include Under the Company’s constitution, a responsible for providing guidance the periods between the Company’s third of the directors retire by rotation to the Chairman and directors, both interim and financial year-end reporting each year and are eligible for re- individually and collectively, on their times and the dates on which the election by shareholders at the annual duties, responsibilities and powers. relevant results are published, and general meeting. The Remuneration The Group Company Secretary advises any time when the Company is trading and Nomination Committee, having on corporate governance as well as under a cautionary announcement. concluded its assessment, recommends compliance with legislation and the the re-election of the retiring directors BSE and JSE Listings Requirements. Audit Committee Charles de Fleurieu, John Hunt, Through this office the Group Roux Marnitz, Malcolm McCulloch, Composition: Rolf Hartmann Company Secretary is responsible Marcus ter Haar and Michael Tollman. (Chairman, resigned 20 May 2015), for facilitating the distribution of These retiring directors are eligible and Michael Tollman, Marcus ter Haar, information in a timely manner. This have offered themselves for re-election Malcolm McCulloch (Chairman, information includes items such as at the coming annual general meeting. appointed 20 May 2015) agenda items for Board meetings, corporate announcements, investor All members have been re-nominated Retirement communications and any other by the Board, subject to shareholder There is no set retirement age for developments which may affect the approval at the annual general executive and non-executive directors. Group. The Board is of the view that meeting, to serve on the committee The period in office is reviewed on an the Group Company Secretary has the for the financial year ending on individual basis by the Board on the requisite qualifications and expertise. 28 February 2016.
90 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 91 About Wilderness Sustainability report Corporate governance Annual financial statements 91 | Ensuring that Group operations operations Ensuring that Group to systems and procedures develop occurring; from accidents prevent of reportsReview on the Group’s amongst accident preparedness, others; guidance with respect Providing to actions that would further risk and improve accident reduce procedures; reaction emergency and test and/or rehearse Review, response emergency current time to time to from procedures to reaction appropriate ensure major emergencies. Remuneration and Nomination Committee HartmannComposition: Rolf 20 May 2015), (Chairman, resigned Tollman Marnitz, Michael Roux (Chairman appointed 20 May 2015), John Hunt (appointed 20 May 2015) The committee comprises independent directors. non-executive within defined The committee operates out in its as set terms of reference charter to and the authority granted and meets at least the Board it by The Chairman, Chief twice a year. Officer and Chief Financial Executive Officer may be invited to attend these meetings, but they may not take any part their own in decisions regarding remuneration. with respect to accident prevention and to accident prevention with respect response. emergency comprises Board The Safety Review directors and non-executive executive who are and senior management, The the Risk Committee. appointed by the Group’s by meeting is also attended flight country managing directors, and flight safety director operations report a monthly to officer who provide Board. the Safety Review within defined The committee operates as set out in its terms of reference charter to and the authority granted the Risk Committee and meets it by The terms of at least twice a year. include: reference • • • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Safety Review Board Marnitz (Chairman), Composition: Roux Friedman, de la Harpe, Russel Derek Wel der van Richard was Board The Safety Review established in January 2012 as a sub- committee of the Risk Committee to assist that committee with its duties to safety and associated risks. relating is responsible Board The Safety Review systems Group overall for overseeing Risk Committee Composition: Malcolm McCulloch Hartmann(Chairman), Rolf (resigned Marnitz, Michael 20 May 2015), Roux Vincent Keith Tollman, The Risk Committee comprises directors. and non-executive executive The Chief Financial Officer and senior also invited to Risk management are Committee meetings. within The committee operates as set reference defined terms of out in its charter and the authority and meets the Board by to it granted The committee at least twice a year. the risk in reviewing assists the Board and significant management process The committee risks facing the Group. in risk strategy sets the Group’s directors liaison with the executive and senior management. In doing so, recognised it makes use of generally risk management and internal control in order models and frameworks to maintain a sound system of risk as management and internal control described later in this report. The Investment Committee was Committee The Investment 2013 as established in February to Board a sub-committee of the material transactions evaluate and make and capital expenditure to the Board. recommendations comprises Committee The Investment directors, and non-executive executive the Board. by appointed who are within The committee operates as set out reference defined terms of in the charter and meets at least twice a year. Investment Committee Composition: Charles de Fleurieu de la Harpe, Marcus (Chairman), Derek Tollman Gavin ter Haar, The committee operates within definedThe committee operates out in its as set terms of reference charter to and the authority granted and meets at least the Board it by meetings being with more twice a year The external held when necessary. Chairman,auditors, internal auditors, Officer and Chief Chief Executive invited to attend.Financial Officer are auditorsThe external and internal access to the Audit unrestricted have committeethe with meet and Committee members, without management once a year. at least present, The activities of the Audit Committee the Report set out in are of the Audit The Chairman Committee on page 94. of the Audit Committee reports on the activities at each Board committee’s meeting. that The Audit Committee ensures independence is appropriate there services to non-audit relating the external auditors, in by provided approved with the Group accordance permissible Pre-approved policy. non-audit services the by performed external auditors include taxation and due diligence services. Prohibited non-audit services valuation include their and accounting work where independence might be compromised work. later auditing their own by to King III,Contrary the Audit the approval Committee recommends report of the integrated to the Board to its activities. in so far as it relates has mandated the Social, The Board Ethics and Sustainability Committee to and make recommendations oversee on the content of the sustainability The report.section of the integrated and activities of the Social, Ethics role and Sustainability Committee are discussed below. The Chairman of the Audit Committee at the annual general will be available queries about the meeting to answer work of the committee. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 90 Corporate governance continued
The committee is responsible for • Monitoring compliance with the by management and the auditors, and making recommendations to the Board Company’s code of conduct; on comments by the auditors and the on the Group’s framework for executive • Monitoring the ethical conduct of results of their audit. remuneration and to determine specific the Company, its executives and remuneration packages for each of the senior officials and identification of Directors’ responsibility executive directors and certain senior any violations of ethical conduct; managers of the Group. The report of for the annual financial • Oversight of the whistleblower the Remuneration and Nomination statements reporting process; committee is included on page 95. The directors accept ultimate • The UN Global Company Principles responsibility for the preparation of that ‘businesses should work the financial statements and related Social, Ethics and against corruption in all its forms, financial information that fairly including extortion and bribery’ as Sustainability Committee represent the state of affairs and the well as the OECD recommendations Composition: Jochen Zeitz (Chairman), results of the Group. regarding corruption; and Derek de la Harpe, John Hunt, Chris Roche, Dr Holly Dublin • Any other matters relating to The annual financial statements as set ethics. out in this report have been prepared in The Social, Ethics and Sustainability conformity with International Financial Committee comprises executive Reporting Standards and are based on and non-executive directors, senior Accountability and control appropriate accounting policies which management and an external adviser. The Board recognises its responsibility have been consistently applied and are The committee meets at least twice to retain full and effective control over supported by reasonable and prudent during the year and more frequently the Group to ensure sustainable growth judgements and estimates. if required. and to act in the best interests of the Group and its stakeholders. The Risk Risk management The committee operates within defined Committee and Safety Review Board terms of reference as set out in its are dedicated to monitoring the risk The Board has established a framework charter and the authority granted to management process and reporting to to review all strategic risks impacting it by the Board. The Board believes it on the likelihood and impact of risks the Group. The major risks facing that sustainable business practices materialising, as well as mitigation the Group have been identified and in the dimensions of conservation, initiatives and their effectiveness. mitigating strategies have been community, culture and commerce implemented, the effectiveness of (the 4Cs) form the sustainability Furthermore, to enable the directors which are monitored by the Risk platform for the business. The 4Cs to meet their responsibilities, Committee. These risks have been sustainability platform is discussed management sets standards and assessed taking into account the on page 3 of this report. implements systems of internal control severity of the impact on the Group’s aimed at reducing the risk of error, business if such identified risks were The South African Companies Act fraud or loss in a cost-effective manner. to come to fruition. Some of the key requires the Company to have a Social These controls include the proper risks that are identified, monitored and and Ethics Committee. In March 2015, delegation of responsibilities within managed are: after consideration of the mandates a clearly defined framework, effective • Dependence on a single country as of the existing committees, it was accounting procedures and adequate the dominant market; segregation of duties. The controls are agreed to widen the mandate of the • Flying activities; existing Sustainability Committee and independently monitored throughout • Exchange rate volatility; to rename it the Social, Ethics and the Group. All employees are required Sustainability (SES) Committee. This to maintain the highest ethical • Security of tenure over leases and process necessitated amendment to standards in ensuring that the Group’s concessions; and the mandates of the following existing business practices are conducted in • Maintaining the standards of our committees: a manner which is in all reasonable service offering. circumstances beyond reproach. • Audit The most significant risks have recently • Remuneration and Nomination The directors are of the opinion that been reviewed and incorporated into • Sustainability the internal accounting controls are the Group Risk Register to test the adequate, so that the financial records effectiveness of the risk controls. In addition to the existing mandate may be relied on for preparing the of the Sustainability Committee, the financial statements and maintaining The Board is satisfied with the newly constituted Social, Ethics and accountability for assets and process of identifying, monitoring and Sustainability Committee will now also liabilities. This opinion is based on the managing significant risks as well as look at: information and explanations given with the internal controls and systems
92 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 93 About Wilderness Sustainability report Corporate governance Annual financial statements 93 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Going concern assessment on the The directors’ concern is set out on as a going Group page 104. have been met during the year under year been met during the have review. an The Company has implemented to to enable employees hotline’ ‘ethics report instances of corruption, fraud behaviour. and other forms of unethical This service Deloitte’s is managed by absolute Offs Anonymous where Tip The Social, anonymity is guaranteed. Committee Ethics and Sustainability all reportedreviews of incidences and other forms corruption, fraud The hotline of unethical behaviour. in centres at our major is available Zambia Botswana, Namibia, Zimbabwe, and South Africa. Organisational and integrity ethics on the basis of operates The Group management across decentralised are countries. All employees several to maintain the highest ethical required in ensuring that the Group’s standards in a conducted are business practices is manner that, in all circumstances, believe The directors reproach. above ethical standards that the required Management reportingManagement has established The Group management reporting disciplines of which include the preparation entities. operating by forecasts and the financial status Monthly results reported. entities are of operating and cash flow projections Profit while regularly, reviewed are forecasts facilities working capital, borrowing compliance are and bank covenant on an ongoing basis. monitored Internal audit Internal Internal audit is an independent function which examines appraisal and the the activities and evaluates of the systems of appropriateness risk management and internal control, audit operates Internal governance. the to it by within the authority granted Audit Committee and the Board. outsourced The Company previously the internal audit function. A risk has been completed process register with emphasis on high risk areas. is kept updated and The register reported on to the Risk Committee at each meeting. As internal controls to the had significantly improved satisfaction of both the Audit Committee and Risk Committee, after it was decided to due consideration, the internal audit function in-source this end, the To to monitor these risks. internal audit function is performed in-house. that are in place to manage the that are the impact identified risks and measure does the Board Accordingly, thereof. to appoint a it is necessary not believe by recommended as chief risk officer, King III. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 92 Report of the Audit Committee
The committee is pleased to present • Ensured that the Group’s existing Annual financial statements its report for the financial year combined assurance model The Audit Committee has evaluated ended 28 February 2015. The report addresses the significant risks the consolidated annual financial is presented in accordance with the facing the Group; statements for the year ended recommendations contained in King III. • Formed an integral component of 28 February 2015 and ensured that the risk management process and, The committee operates within defined they comply, in all material aspects, amongst others, monitored: terms of reference as set out in its with the requirements of the Act and charter and the authority granted to it – Financial reporting risks; appropriate International Financial by the Board. During the period under – Internal financial controls; Reporting Standards. The committee has therefore recommended the annual review the following activities, among – Fraud risks as they relate to financial statements for approval to the others, were carried out: financial reporting; and Board. The Board has subsequently • Reviewed and commented on – Information technology (IT) approved the financial statements, the annual financial statements risks as they relate to financial which will be open for discussion at the and the accounting policies and reporting; forthcoming annual general meeting. ensured that the annual financial • Played an oversight role in respect statements of the Group comply of the internal audit function to with all statutory requirements; Conclusion on fulfilment of ensure its effectiveness; • Monitored compliance with duties and obligations • Reviewed developments in accounting standards and legal Given the above, the committee is of corporate governance and best requirements; the opinion that it has appropriately practice and considered their addressed its key responsibilities in • Reviewed the quality and impact and implications on the respect of: effectiveness of the external audit Group and in particular ensured process, the external auditor’s that the principles of King III are • Internal control; report to the committee and embedded throughout the Group; • Financial accounting control; management’s responses; • Satisfied itself that the Chief • Selected stakeholder reporting that • Reviewed interim reports, results Financial Officer is appropriately relates to the Audit Committee; and announcements and other releases qualified and experienced to • Statutory and regulatory of price-sensitive information; fulfil his role and that the Finance requirements. • Reviewed significant judgements function is suitably resourced and and/or unadjusted differences skilled to carry out its obligations; resulting from the audit, as well as and any reporting decisions made; • Reviewed the text of various • Recommended the re-appointment reports, including the going of Deloitte & Touche, F Els and concern statement, corporate Rolf Hartmann C Naidoo as the registered governance report and directors’ Chairman independent auditors; report for inclusion in the (resigned 20 May 2015) – Set the terms of Deloitte & integrated annual report for the Touche’s engagement; year ended 28 February 2015. – Determined the fees to be paid to Deloitte & Touche and ensured that the fees are fair and equitable; and – Maintained a non-audit services policy which determines the nature and extent of any non-audit services that Deloitte & Touche may provide to the Group;
94 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 95 About Wilderness Sustainability report Corporate governance Annual financial statements 95 | ) Annual bonus. An annual bonus is payable at the discretion of the Company and provides based on a combination rewards of individual and Company to targets performance relative set at the beginning of each year. Travel who qualify for Employees Shop performance-based incentive incentive scheme or the executive scheme; Life insurance, comprising a Life insurance, amount or multiple of fixed fixed remuneration; comprising Disability insurance, an amount to partially lost replace compensation during the period of medical incapacity or disability; Medical benefits, providing of supplemental reimbursement or primary medical expenses including hospitalisation, facility visits, room doctor or emergency medication and prescription plans These dental expenses. include annual limits and involve cost sharing to employees’ and purchasing; efficient promote savings, comprising Retirement full or partially matched (with contributions towards employee) to savings, subject retirement and practice local competitive legislation. Short-term incentives (STIShort-term an element of STI have Employees comprising one of based remuneration, the following: • Remuneration The basic element of remuneration to required is a base salary that is set of skills, a given and retain attract competencies and experience. Employee benefits retirement and funding are Other components of reward These to certain given employees. local competitive subject to are The Company legislation. and practice through appropriate, where provides, parties,third additional elements of compensation: • • • •
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Share appreciation appreciation Share rights shares Performance Long-term incentive incentive Long-term to five – three (LTI) years 2011 Group Wilderness Plan: Share • • Variable Motivate employees to perform in employees Motivate of the Company the best interests and its stakeholders. Remuneration structure The mix of fixed-to-variable including the mix of remuneration, short- and long-term incentives, of the differs depending on the level have Senior executives employee. proportion of their total a larger subject to variable remuneration The performance of the Group. components of the remuneration detailed below: are structure • positioned are levels Remuneration to other comparable relative economic the current organisations, personal and individuals’ environment, performance and the Company’s business model. Remuneration fixed comprises elements of and performance-based remuneration (at-risk) remuneration. Annual bonus – cash payment of a 13th cheque or thereabouts, subject to individual and Company performance Shop performance-based Travel scheme – cash payment incentive dependent on EBITDA targets scheme – a incentive Executive cash payment dependent on level achieved of cash earnings growth the Company and individual by performance One of the following: • • • Short-term (STI) incentive – annual Appropriately compensate Appropriately for the servicesemployees they the Company; provide employees and retain Attract to effectively with skills required and growth manage the operations of the business; and Salary benefits Employee funding Retirement • • • Fixed Remuneration Remuneration philosophy philosophy applies The remuneration It is the operations. to all Group philosophy to: Group’s • • The committee is pleased to present its to present The committee is pleased reportyear ended for the financial reportThis sets out 2015. 28 February philosophy remuneration the Group’s in accordance and recommendations with King III.The report and the of the Remuneration recommendations will and Nomination Committee for be submitted to shareholders at the annual general consideration meeting. Report of the Remuneration and and Report Remuneration of the Nomination Committee Nomination Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 94 Report of the Remuneration and Nomination Committee continued
• Travel Shop performance-based Travel Shop performance-based of at-risk remuneration of between incentive scheme. For the year incentive scheme do not qualify 20% and 60% of the employee’s under review all Travel Shop for the annual bonus or executive fixed package. No payment is made employees have individual incentive scheme; and if performance does not achieve scorecards with performance • Executive Incentive Scheme. The threshold levels. Staff who qualify measures that are aligned with the executive incentive scheme is for the executive incentive scheme Travel Shop budget and strategy. part of the Company’s short-term do not qualify for the annual bonus The performance measures are incentive structure and is offered to or Travel Shop performance-based split into team (60%) and individual executive and senior management. incentive scheme. (40%) measures. The individual The incentive measures qualitative must achieve 20/40 for their and quantitative factors on a 40/60 Long-term incentive (LTI) individual performance measure basis. Rewards will only be made if Wilderness Group 2011 Share Plan to qualify for the individual and/ the Company achieves a minimum Shareholders approved the Wilderness or team incentive award. The of 15% growth in adjusted EBITDA Group Share Plan on 28 March 2011. incentive award is determined compared to the prior period. The Plan forms part of the Company’s by the performance score gained Rewards can be further withheld long-term incentive structure and is through a performance review should the individual not achieve designed to reward executive, senior process. Awards will only be the qualitative factors that align management and key personnel over made if the Travel Shop has values towards the Company’s the long term, being a three- to five- attained its gross profit budget. 4Cs philosophy. Once 25% growth year period. The scheme consists of High performing individuals can in adjusted EBITDA is achieved, two methods and employees may be receive a maximum incentive of the employee can receive the issued both or one type of incentive. three times their monthly salary, maximum incentive. Achievement creating a salary/incentive ratio of established performance The two methods are summarised as of 80/20. Staff who qualify for the objectives results in the payment follows:
Share appreciation rights Performance shares
Method Conditional right to acquire shares at a future Conditional award to receive a specified date. Value of the shares acquired is calculated by number of shares at a future date at nil reference to appreciation in the value of the shares cost. between grant and exercise. Grant price is set by reference to volume weighted average price of shares at least seven to 21 days preceding the date of grant, as determined by the Board. The exercise price is the price on the date of exercise.
Vesting period Three equal tranches on the third, fourth and fifth Three years from the date of grant. Vesting anniversary of the grant date, subject to continued is subject to continued employment with employment and the satisfaction of Company the Group and the satisfaction of the performance conditions. Company performance conditions.
Exercise period Commences on the vesting date and expires on the Not applicable. sixth anniversary of the date of grant. Should the performance criteria not be satisfied the rights shall lapse.
Participation and award levels Any salaried employee is eligible to participate at the invitation of the Board. Deemed salaries are applied to determine the allocation quantum. This negates the impact of differing salaries which are attributable to regional influences, qualifications and length of service.
Performance criteria As determined by the Board from time to time.
Termination of employment In the event of a no-fault termination all rights shall In the event of a no-fault termination all vest and become exercisable and then shall be shares shall vest and become available settled with effect from the date of termination of to be settled with effect from the date of employment. termination of employment.
In the event of a fault termination all rights not yet In the event of a fault termination all shares vested shall be cancelled not yet vested shall be cancelled.
96 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 97 About Wilderness Sustainability report Corporate governance Annual financial statements 97 | – – 2015 shares 619 702 619 702 (420 174) 5 773 977 (1 150 002) 3 124 932 3 124 3 959 404 3 959 4 203 801 7 846 260 Balance at 16 170 000 4 203 801 13 045 068 13 (13 045 068) 28 February 28 February Performance –
– – – year Share rights Settled Settled 77 054 122 380 950 568 9 910 860 1 150 002 during the 8 841 267 8 841 267 (1 069 593) appreciation appreciation year Lapsed 1 489 767 1 489 767 during the – – – – – Integrated Annual Report 2015 Holdings Limited Integrated Wilderness year Granted Granted during the 2014 1 March 1 March 742 082 696 756 5 449 171 8 796 828 Balance at 15 684 837 of shares. Performance is Performance of shares. and three; year in measured 15% to 20% annual in HEPScompounded growth for 100% to 200% targeted Performance number of shares. Results three. year in measured 15% and 20% growth between pro-rated. per annum are –
12% to 15% annual in HEPScompounded growth number for 100% targeted Share appreciation rights: 10% appreciation Share annual compounded growth in HEPS shares: Performance – Lapsed – Terminations Lapsed – Settled in 2014 Awarded in 2014 Awarded Previously awarded in 2013 awarded Previously Lapsed – Terminations Lapsed – • • • Total number of rights/awards granted and outstanding as at 28 February 2015 and outstanding as at 28 February granted number of rights/awards Total At 1 March 2014 At 1 March • Total number of rights/awards attributable to the scheme as at 28 March 2011 attributable to the scheme as at 28 March number of rights/awards Total At 28 February 2015 At 28 February end Subsequent to year • At 31 May 2015 Under the scheme, eligible employees may be awarded performance shares, share appreciation rights, or both. The maximum rights, or both. appreciation share shares, performance may be awarded Under the scheme, eligible employees any one by that may be acquired of shares The maximum number attributable to the scheme is 16 170 000. number of shares participant is 7%. and in aggregate in the scheme is 0.5% (1 155 000 shares) as follows: are Movements The remuneration for non-executive directors for the year ending 28 February 2015, as set out below, was approved by shareholders shareholders by was approved 2015, as set out below, ending 28 February for the year directors for non-executive The remuneration meeting on 29 August 2014. annual general at the Company’s Non-executive remuneration directors’ Total incentive scheme incentive Total Other Executive directors Executive D de la Harpe A Azoulay Senior management Number of rights granted and awards The performance conditions for all the The performance conditions been made to date that have awards are: • • Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 96 Report of the Remuneration and Nomination Committee continued
Non-executive remuneration for the financial year ending 28 February 2015:
P’000 • Chairman of the Board 480 • Deputy Chairman 200 • Non-executive directors 100 • Chairman of the Audit Committee 50 • Chairman of the Investment Committee 50 • Chairman of the Remuneration and Nomination Committee 50 • Chairman of the Risk Committee 50 • Chairman of the Social, Ethics and Sustainability Committee 50 • Chairman of the Safety Review Board 50
Executive directors’ paid employees other than directors such salaries based on the fact that the in the Company. We understand that salaries are influenced by geographical remuneration the intention here is to disclose if situation and exchange rates. However, The directors have not entered into such salaries are material and of it can provide the assurance that such fixed service contracts. shareholder interest. While Wilderness salaries are below those of executive is committed to the spirit of the directors and are market-related. Top earners recommendation, the Board has King III recommends the disclosure of decided that it is not necessary, nor in the salaries of the three most highly the Company’s interests, to disclose
Employee provident Benefits and medical Shares/ Salaries and bonuses aid options Total P P P P P
2015 Keith Vincent 2 353 992 1 320 000 3 673 992 Derek de la Harpe* 1 444 143 827 778 191 103 327 716 2 790 740 Ami Azoulay* 1 372 695 737 705 262 550 206 340 2 579 291
*Where directors’ emoluments are paid in Rands, the amounts reflected are the values calculated using an average exchange rate of R1.22 to the Pula.
Employee provident Benefits and medical Salaries and bonuses aid Total P P P P
2014 Keith Vincent 2 095 847 1 138 500 3 234 347 Derek de la Harpe* 1 268 978 814 296 166 561 2 249 835 Ami Azoulay (1 February 2014) 89 007 – 17 831 106 838
*Where directors’ emoluments are paid in Rands, the amounts reflected are the values calculated using an average exchange rate of R1.17 to the Pula.
Rolf Hartmann Chairman (resigned 20 May 2015)
98 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 99 About Wilderness Sustainability report Corporate governance Annual financial statements 99 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness
Entrenching the Group’s values in values the Group’s Entrenching to ethics, anti-corruption, regard social human rights and corporate and and overseeing investment, in these monitoring progress and respects; Engagement with stakeholders, especially the many rural our communities who are instances neighbours and in some or partners.also our landlords • • is Sustainability Strategy The Group’s established and good progress well has been made in implementation of this, based upon the 4Cs platform. are of this implementation The results reported in detail in our Integrated Report. in the latter Our engagements and less structured are two respects will be a major focus this correcting committee in the of the re-constituted ahead. year Jochen Zeitz Chairman
Continued efforts any to reduce impacts that our activities negative on the environment, may have of our implementation through sustainability strategy; The Social, Ethics and Sustainability The Social, Ethics and (SES) into being Committee came the following 2015 in March of the modification of the mandate This then Sustainability Committee. was effected modification of mandate in to the requirement, in response Companies terms of the South African certainAct, for companies of a a social and ethics to have size of existing The mandates committee. responsibilities committees that have those suggested for approximating the social and ethics committee were agreed and the Board reconsidered way to meet the that the most effective was to expand the new requirement mandate of the existing Sustainability Committee to that of Social, Ethics and and at the same time Sustainability, to also modify the mandates of the and existing Audit and Remuneration Nomination Committees. The SES for the Committee met first time in its amended form in the agreed The Committee April 2015. amended mandate which incorporates main areas: in three responsibilities • Report of the Social, Ethics and Report Social, of the Ethics and Sustainability Committee Sustainability Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 98 Global reporting initiative (GRI) G4 content index
General Standard Disclosures Page number (or link) Specific Standard Disclosures Page number (or link) Strategy and analysis CATEGORY: ECONOMIC G4-1 p. 22 – 23 Aspect: Economic performance Organisational profile G4-DMA p. 16 – 17; p. 30 G4-3 Front cover G4-EC1 p. 30 G4-4 p. 6 – 7 Aspect: Market presence G4-5 p. 171 G4-DMA p. 17; p. 54 G4-6 p. 6 G4-EC5 p. 60 G4-7 p. 8 G4-EC6 p. 60 – 61 G4-8 p. 8 – 19 Aspect: Indirect economic impacts G4-9 p. 1; p. 6; p. 30; G4-DMA p. 17; p. 53 – 54 G4-10 p. 61; p. 62 G4-EC8 p. 64; p. 66; p. 68; p. 70 – 71; G4-11 p. 63 p. 74 – 75 G4-12 p. 11 CATEGORY: ENVIRONMENTAL G4-13 Front cover flap; p. 25 Aspect: Energy G4-14 p. 10 – 12 G4-DMA p. 17; p. 44 G4-15 Online G4-EN3 p. 46 G4-16 Online G4-EN6 p. 46 – 47 Identified material aspects and boundaries G4-EN7 p. 46 – 47 G4-17 Inside front cover Aspect: Water G4-18 Front cover flap G4-DMA p. 17; p. 44 G4-19 p. 37; p. 53; online G4-EN8 p. 48 G4-20 Online G4-EN9 p. 40 G4-21 Online Aspect: Biodiversity G4-22 Online G4-DMA p. 17; p. 38 G4-23 Inside front cover G4-EN11 p. 39 Stakeholder engagement G4-EN12 p. 39 – 40; Online G4-24 p. 19 G4-EN13 p. 42 – 43; Online G4-25 p. 18 G4-EN14 p. 41; Online G4-26 p. 18 – 19 Aspect: Emissions G4-27 p. 18 G4-DMA p. 17; p. 37; p. 44 Report profile G4-EN15 p. 46 G4-28 Front cover flap G4-EN16 p. 46 G4-29 Online G4-EN18 p. 46 G4-30 Front cover flap G4-EN19 p. 46 G4-31 Front cover flap Aspect: Effluents and waste G4-32 Front cover flap G4-DMA p. 17; p. 37 G4-33 Front cover flap G4-EN22 p. 48 Governance Aspect: Compliance G4-34 p. 85 – 99 G4-DMA p. 17; p. 44 Ethics and integrity G4-EN29 Online G4-56 p. 2 – 3 Aspect: Transport G4-DMA p. 17; p. 37 G4-EN30 p. 46 Material aspect: Overall G4-DMA p. 17; p. 38 G4-EN31 p. 42 – 43; Online
100 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 101 About Wilderness Sustainability report Corporate governance Annual financial statements 101 | Page number (or link) number Page 63; Online p. 63 p. 54 – 55 53; p. 16; p. p. Online 52 16; p. p. 52 – 53 p. 52 16; p. p. 52; Online p. 16 p. Online Sub-category: Responsibility Product Integrated Annual Report 2015 Holdings Limited Integrated Wilderness G4-SO3 G4-SO4 Aspect: Compliance G4-DMA G4-SO8 and serviceAspect: Product labelling G4-DMA G4-PR5 Aspect: Customer privacy G4-DMA G4-PR8 Aspect: Compliance G4-DMA G4-PR9 Specific Standard Disclosures Standard Specific Page number (or link) number Page p. 16; p. 53; p. 54 53; p. 16; p. p. 62 p. 62 – 63 53; p. 16; p. p. 62 – 63 p. 53; p .56 16; p. p. 58 p. 56 – 59 p. 59 p. 54 53; p. 53; p. 16; p. p. 60 – 61 p. 60 – 61 53; p. 16; p. p. 60 p. 54 – 55 53; p. 16; p. p. 63 p. 54 53; p. 16; p. p. 63 p. 54 – 55 53; p. 16; p. p. 63 p. 54 – 55 53; p. 16; p. p. 83; Online p. 54 – 55 53; p. 16; p. p. 83; Online p. 54 – 55 53; p. 16; p. p. 63; Online p. p. 16; p. 53; p .64 16; p. p. 74 – 75 65 – 68; p. p. 76 – 81 p. 92 54 – 55, p. 53; p. 16; p. p. CATEGORY: SOCIAL CATEGORY: Sub-category: Society Sub-category: Human Rights Sub-category: Labour Practices and Decent Work Sub-category: and Decent Labour Practices Specific Standard Disclosures Standard Specific Aspect: Employment G4-DMA G4-LA1 Aspect: Occupational health and safety G4-DMA G4-LA6 and education Training Aspect: G4-DMA G4-LA9 G4-LA10 G4-LA11 equal opportunity and Aspect: Diversity G4-DMA G4-LA12 for women and men Aspect: Equal remuneration G4-DMA G4-LA13 mechanisms grievance Aspect: Laboer practices G4-DMA G4-LA16 G4-HR3 bargaining of association and collective Aspect: Freedom G4-DMA G4-HR4 Aspect: Child labour G4-DMA G4-HR5 or compulsory labour Aspect: Forced G4-DMA G4-HR6 Aspect: Indigenous rights G4-DMA G4-HR8 Aspect: Non-discrimination G4-DMA G4-SO1 G4-SO2 Aspect: Anti-corruption G4-DMA Aspect: Local communities Aspect: Local G4-DMA Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 100 Main: Floodplain in front of Mombo Camp, Botswana. Right: Guided walk, Botswana. Above: Quad biking on the dunes, Serra Cefema, Namibia. Top right: Game drive, Botswana.
102 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 103 About Wilderness About Sustainability report
Annual financial statements Corporate governance
104 Directors’ responsibility and approval of the annual consolidated and separate financial statements
105 Directors’ report
108 Independent auditor’s report
110 Consolidated statement of comprehensive income
111 Consolidated statement of financial position
112 Consolidated statement of changes in equity
114 Consolidated statement of cash flows
115 Summary of significant accounting policies
126 Notes to the consolidated annual financial statements Annual financial statements
154 Company statement of comprehensive income
155 Company statement of financial position
156 Company statement of changes in equity
157 Company statement of cash flows
158 Notes to the Company annual financial statements
102 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 103 Directors’ responsibility and approval of the annual consolidated and separate financial statements
The directors are required to maintain The focus of risk management in the adequate accounting records and Group is on identifying, assessing, are responsible for the content and managing and monitoring all known forms integrity of the financial statements of risk across the Group. While operating and related financial information risk cannot be fully eliminated, the Group included in this report. It is their endeavours to minimise it by ensuring responsibility to ensure that the that appropriate infrastructure, controls, financial statements fairly present systems and ethical behaviour are applied the state of affairs of the Group as at and managed within predetermined the end of the financial year and the procedures and constraints. results of its operations and cash flows for the year then ended, in conformity The directors are of the opinion, based on with International Financial Reporting the information and explanations given by Standards. The external auditors are management, that the system of internal engaged to express an independent control provides reasonable assurance opinion on the financial statements. that the financial records may be relied on for the preparation of the financial The financial statements are prepared statements. However, any system of in accordance with International internal financial control can provide only Financial Reporting Standards and are reasonable, and not absolute, assurance based upon appropriate accounting against material misstatement or loss. policies consistently applied and supported by reasonable and prudent The directors have reviewed the Group’s judgements and estimates. cash flow forecast for the year to 28 February 2016 and, in the light of this The directors acknowledge that review and the current financial position, they are ultimately responsible they are satisfied that the Company and for the system of internal financial Group have or have access to adequate control established by the Group resources to continue in operational and place considerable importance existence for the foreseeable future. on maintaining a strong control environment. To enable the directors The annual financial statements set out to meet these responsibilities, the on pages 110 to 153 and 154 to 164, which Board sets standards for internal have been prepared on the going concern control aimed at reducing the risk of basis, were approved by the Board on error or loss in a cost effective manner. 20 May 2015 and 15 July 2015 and were The standards include the proper signed on its behalf by: delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls Parks Tafa Ami Azoulay are monitored throughout the Group Chairman Chief Financial Officer and all employees are required to maintain the highest ethical standards in ensuring the Group’s business is conducted in a manner that in all reasonable circumstances is above reproach.
104 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 105 About Wilderness Sustainability report Corporate governance Annual financial statements 105 | Stated capital Stated Company 2015, the On 4 February of no shares issued 882 451 ordinary in order for no consideration par value to settle obligations to employees in terms of the including directors Share Holdings Group Wilderness by Plan that was approved 2011. on 28 March shareholders Company the new issue, the Following in issue. 231 882 451 shares has now capital of the details of the share Full 2015 are Company at 28 February contained in note 17 to the financial statements. 1 January 2018 but allows for early for 1 January 2018 but allows details of this adoption adoption. Full summary of significant in the given are in the accounting policies included financial statements. 18.15 15.00 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 5 June 2015 12 June 2015 20 May 2015 25 June 2015 Botswana (thebe) South Africa (cents) Accounting policies has adopted certainThe Group amendments and new standards, to existing standards interpretations for the financial effective which are 2015. beginning on 1 March year adopted is Included in the standards IFRS with Contracts from 15 Revenue was issued The standard Customers. date of in May 2014 with an effective Last date to trade Last date to trade shares ordinary cum dividend date Record Amount paid per share ordinary • • date Payment Withholding tax of Botswana In terms of the Republic as amended, Act, Tax Income withholding tax amounting to 7.5% dividend the gross was deducted from paid to all Botswana residents. Act of 1962, Tax In terms of the Income as amended, a withholding tax of 15% dividends gross was deducted from paid to all South Africa resident shareholders. Dividends and approved proposed Dividends are the of of directors the Board by a dividend that In the event Company. it is envisaged to declare is declared, year each a final dividend in May/June of the cycle due to the annual cashflow business. the under review During the year dividend was paid to following shareholders: date Declaration Group attributable earnings for the Group February 2015 year ended 28 financial P76 million (2014: P48 million) were of share earnings per representing 31.35 thebe (2014: 19.98 thebe). were Headline earnings per share 32.49 thebe (2014: 16.07 thebe). of the financial position and details Full set are Group Wilderness of the results out in these financial statements. Financial results Listings The Company has been listed on the Exchange, with a Botswana Stock listing on the secondary inward of the JSEMain Board Limited, since 8 April 2010. name under which the The abbreviated Company is listed on the BSE the and JSE and the Limited is “Wilderness” Clearing House Code Company’s is “WIL”. Nature of businessNature holding is an investment Wilderness subsidiaries company whose principal in safari consulting invested are and destination (tour operating and touring management), transfer lodge and safari camp, (air and road), as as well operations, exploration finance and asset management. is dedicated to responsible Wilderness in which the areas tourism throughout these Our goal is to share operate. we the all over with guests from wild areas world, while at the same time helping of conservation future the to ensure spectacular wildlife heritage Africa’s and sharing the benefits of tourism with local communities. To the members of Wilderness Wilderness members of the To or Holdings Limited (Wilderness the Company) Directors’ report Directors’ Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 104 Directors’ report continued
Directors’ interests in shares At 28 February 2015, the directors of the Company during the year held direct and indirect interests in 160 482 862 of the Company’s issued ordinary shares (2014: 160 332 380). Details of shares held per individual director are listed below:
Direct Indirect Direct Indirect non– non– beneficial beneficial beneficial beneficial Total %
2015 Executive directors Derek de la Harpe 73 428 – – – 73 428 <0.1 Ami Azoulay 77 054 – – – 77 054 <0.1 Keith Vincent 9 884 701 – – – 9 884 701 4.26 Total 10 035 183 10 035 183 4.33 Non-executive directors John Hunt 11 000 – – – 11 000 <0.1 Malcolm McCulloch 10 063 593 – – – 10 063 593 4.34 Gavin Tollman – – – 80 061 435 80 061 435 34.53 Charles de Fleurieu – – – 58 001 651 58 001 651 25.01 Jochen Zeitz 2 310 000 – – – 2 310 000 0.99 Total 12 384 593 138 063 086 150 447 679 64.88 Total executive and non-executive directors’ interests 22 419 776 138 063 086 160 482 862 69.21
2014 Executive directors Keith Vincent 9 884 701 – – – 9 884 701 4.28 Total 9 884 701 9 884 701 4.28 Non-executive directors John Hunt 11 000 – – – 11 000 <0.1 Malcolm McCulloch 10 063 593 – – – 10 063 593 4.36 Gavin Tollman – – – 80 061 435 80 061 435 34.66 Charles de Fleurieu – – – 58 001 651 58 001 651 25.11 Jochen Zeitz 2 310 000 – – – 2 310 000 1.00 Total 12 384 593 138 063 086 150 447 679 65.13 Total executive and non-executive directors’ interests 22 269 294 138 063 086 160 332 380 69.41
106 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 107 About Wilderness Sustainability report Corporate governance Annual financial statements 107 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Issue of new shares of no par value of no par value Issue of new shares obligations to settle the Company’s Plan Share in terms of the Group’s of 2011. Shareholder spread Shareholder analysis of A comprehensive together with a list of shareholders, beneficially holding shareholders of 3% of in excess or indirectly directly of the Company as shares the ordinary 2015, is set out on at 28 February page 166. Material and other Material resolutions of a significant Details of resolutions the Company and by passed nature under its subsidiaries during the year as follows: were review, passed robin) (round resolution Ordinary 4 December 2014: on the Board by • and Xigera camps are located expired located expired camps are and Xigera been not yet These have in mid 2014. and the as the structures renewed which these concessions by process by allocated and administered are being are the Botswana authorities stability to improve changed in order in the and long-term confidence competitors A number of our industry. similarly affected. On the basis are with senior of correspondence the Group representatives, Government is confident that the concessions to existing concerned will be reissued good standing. in operators Leases As reported the in the interim results, leases for the concessions upon which Vumbura our Mombo, Little Mombo, Details of subsidiaries in its interests Details of the Group’s set out on pages 160, subsidiaries are 167, 168 and 169 of this report. Directorate and secretary Directorate Tafa Parks by chaired is The Board Tollman who is supported Michael by is Vincent as Deputy Chairman. Keith The Group Officer. the Chief Executive for is responsible Company Secretary guidance to the Chairman providing both individually and directors, on their duties and and collectively, have All directors responsibilities. access to the advice of the Group the and, through Company Secretary to office of the Company Secretary, advice at the independent professional expense. Company’s Hartmann from Mr Rolf has resigned The Board on 20 May 2015. the Board and management wish to thank Rolf of servicefor the many years and Wilderness to contribution invaluable and its people. Contact details for the South African and Botswana Company Secretaries on the administrative provided are information page of this report. Directors’ emolumentsDirectors’ detailed emoluments are The directors’ Report on in the Remuneration page 98. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 106 Independent auditor’s report to the shareholders of Wilderness Holdings Limited
Report on the financial fraud or error. In making those risk statements assessments, the auditor considers internal control relevant to the entity’s We have audited the accompanying preparation and fair presentation of the consolidated financial statements of consolidated financial statements in Wilderness Holdings Limited, which order to design audit procedures that comprise the consolidated statement are appropriate in the circumstances, of financial position as at 28 February but not for the purpose of expressing 2015, the consolidated statements an opinion on the effectiveness of comprehensive income, changes of the entity’s internal control. An in equity, and cash flows for the year audit also includes evaluating the then ended, and the notes comprising appropriateness of accounting a summary of significant accounting principles used and the reasonableness policies and other explanatory of accounting estimates made by information, as set out on pages 110 management, as well as evaluating to 153. the overall presentation of the consolidated financial statements. Directors’ responsibility for We believe that the audit evidence the financial statements we have obtained is sufficient and The Company’s directors are appropriate to provide a basis for our responsible for the preparation and audit opinion. fair presentation of these consolidated financial statements in accordance Opinion with International Financial Reporting Standards and for such internal In our opinion, the consolidated control as the directors determine is financial statements give a true and necessary to enable the preparation of fair view of the consolidated financial consolidated financial statements that position of Wilderness Holdings are free from material misstatement, Limited, as at 28 February 2015, and of whether due to fraud or error. its consolidated financial performance and its statement of cash flows for the year then ended in accordance Auditor’s responsibility with International Financial Reporting Our responsibility is to express an Standards. opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and Deloitte & Touche plan and perform the audit to obtain Certified Auditors reasonable assurance, about whether Practising Member: the consolidated financial statements M Marinelli (19900028) are free from material misstatement. 21 May 2015 An audit involves performing procedures to obtain audit evidence Deloitte & Touche about the amounts and disclosures in Chartered Accountants (Botswana) the consolidated financial statements. Deloitte & Touche House The procedures selected depend on Plot 64518 the auditor’s judgement, including the Fairgrounds assessment of the risks of material Gaborone misstatement of the consolidated Botswana financial statements, whether due to
108 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 109 About Wilderness Sustainability report Corporate governance Annual financial statements 109 |
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Opinion In our opinion, the financial statements a true and fair view of the financial give Holdings Wilderness position of 2015, Limited, as at 28 February and of its financial performance and year then ended in for the cash flows with International Financial accordance Reporting Standards. Touche Deloitte & Certified Auditors Member: Practising M Marinelli (19900028) 15 July 2015 Touche Deloitte & Chartered Accountants (Botswana) House Touche Deloitte & Plot 64518 Fairgrounds Gaborone Botswana assessments, the auditor considers assessments, the auditor to the entity’s relevant internal control the of and fair presentation preparation to design order financial statements in appropriate that are audit procedures but not for the in the circumstances, an opinion purpose of expressing entity’s of the on the effectiveness An audit also includes internal control. the appropriateness evaluating of accounting principles used and of accounting the reasonableness management, estimates made by overall the as evaluating as well of the financial presentation statements. evidence that the audit believe We obtained is sufficient and have we a basis for our to provide appropriate audit opinion. Auditor’s responsibility Auditor’s an is to express Our responsibility opinion on these financial statements conducted our We based on our audit. with International audit in accordance Those Auditing. on Standards comply with that we require standards plan and and ethical requirements perform the audit to obtain reasonable about whether the financial assurance, material from free statements are misstatement. performing An audit involves to obtain audit evidence procedures about the amounts and disclosures The in the financial statements. selected depend on the procedures judgement, including the auditor’s assessment of the risks of material misstatement of the financial statements, whether due to fraud In making those risk or error. The Company’s directors are are directors The Company’s and for the preparation responsible of these financial fair presentation with statements in accordance International Financial Reporting and for such internal control Standards determine is necessary as the directors of financial to enable the preparation material from free statements that are or misstatement, whether due to fraud error. Directors’ responsibilityDirectors’ for the financial statements of Wilderness Holdings Limited Holdings of Wilderness Report on the financial statements audited the financial have We Holdings Wilderness statements of the statement Limited, which comprise February at 28 of financial position as comprehensive 2015, the statements of and cash income, changes in equity, and year then ended, for the flows a summary of the notes; comprising significant accounting policies and other explanatory information, as set out on pages 154 to 164. Independent auditor’s report to the shareholders to the shareholders report auditor’s Independent Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 108 Consolidated statement of comprehensive income for the year ended 28 February
Restated 2015 2014 Notes P’000 P’000
Revenue 3 944 586 843 288 Cost of sales 3 (301 972) (258 469) Gross profit 642 614 584 819 Other gains and losses 7 056 17 200 Operating expenses (476 072) (452 166) Net foreign exchange gains 4 8 103 1 315 Operating profit for the year before items listed below (EBITDA) 181 701 151 168 Impairment loss 4 (10 175) (8 902) Depreciation and amortisation 4 (55 896) (50 093) Operating profit 4 115 630 92 173 Interest received 2 501 1 279 Financing costs 5 (7 108) (8 788) Unrealised foreign exchange loss on loans (6 519) (9 851) Share of earnings for equity-accounted investments, net of tax 12 4 191 2 708 Profit before taxation 108 695 77 521 Taxation 6 (32 463) (29 031) Profit for the year 76 232 48 490 Other comprehensive income/(loss) 9 106 (5 275) Items that may be subsequently reclassified to profit or loss: Exchange differences on translating foreign operations 9 106 (5 275) Total comprehensive income for the year 85 338 43 215
Profit for the year attributable to: Owners of the Company 72 611 46 147 Non-controlling interest 3 621 2 343 76 232 48 490
Total comprehensive income for the year attributable to: Owners of the Company 81 704 41 581 Non-controlling interest 3 634 1 634 85 338 43 215
Earnings per share (thebe) – Basic 7 31.35 19.98 – Diluted 7 30.55 19.72
110 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 111 About Wilderness Sustainability report Corporate governance Annual financial statements 111 | 237 500 2014 P’000 1 686 17 913 21 195 (7 747) 13 982 22 185 19 707 14 530 10 840 10 802 44 671 32 696 56 708 20 346 96 097 27 624 124 221 (73 324) 153 703 507 515 474 933 387 920 407 530 382 695 295 390 882 463 374 948 260 328 383 294 336 937 882 463 – 509 2015 6 155 P’000 1 229 598 9 598 15 435 817 76 817 21 255 (4 995) 21 935 19 933 599 21 599 14 683 34 664 23 480 376 89 376 60 058 49 283 28 809 (73 324) 916 421 916 421 505 514 907 410 156 086 444 031 383 014 502 332 309 297 634 424 634 472 390 283 200 449 026 9 11 10 12 13 14 15 16 17 18 19 14 21 20 Notes Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Property, plant and equipment Property, ASSETS assets Non-current Consolidated position financial of statement as at 28 February Goodwill Intangible assets Investment and loans in associates Investment Loans receivable Loans Deferred tax assets Deferred Inventories Current assets Current Trade receivables Trade Other receivables and prepayments Other receivables Current tax receivable Current Cash and cash equivalents Stated capital Stated Total assets Total EQUITY AND LIABILITIES of the Company Equity attributable to owners Foreign currency translation reserve translation currency Foreign Common control reserve Common control Other non-distributable reserves Share-based payment reserve Share-based Retained income Retained Non-current liabilities Non-current Non-controlling interest Non-controlling equity Total liabilities Long-term Loans from related parties related from Loans Deferred tax liabilities Deferred Trade and other payables Trade Current liabilities Current Current tax liabilities Current Bank overdrafts Total liabilities Total Total equity and liabilities Total Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 110 Consolidated statement of changes in equity for the year ended 28 February
Foreign Other Share- currency Common non- based Total Non- Stated translation control distributable payment Retained shareholders’ controlling Total capital reserve reserve reserves reserve income equity interest equity P’000 P’000 P’000 P’000 P’000 P’000 P’000 P’000 P’000
Balance at 1 March 2013 153 703 15 406 (73 324) 16 374 4 651 227 918 344 728 (7 259) 337 469 Non-controlling interests' portion of dividend paid – – – – – – (2 093) (2 093) Total comprehensive income for the year – (4 566) – – – 46 147 41 581 1 634 43 215 Dividends paid – – – – – (9 240) (9 240) – (9 240) Transfer from distributable reserves to re-insurance reserve – – – 4 497 – (4 497) – – – Acquisition of additional interest in subsidiary company – – – (525) – – (525) (29) (554) Share-based payments expense – – – – 6 151 – 6 151 – 6 151
Balance at 28 February 2014 153 703 10 840 (73 324) 20 346 10 802 260 328 382 695 (7 747) 374 948 Non-controlling interests' portion of dividend paid – – – – – – – (2 208) (2 208) Share issue on settlement of share scheme 2 383 – – – – – 2 383 – 2 383 Total comprehensive income for the year – 9 093 – – – 72 611 81 704 3 634 85 338 Dividends paid – – – – – (23 100) (23 100) – (23 100) Transfer from distributable reserves to re-insurance reserve – – – 1 118 – (1 118) – – – Acquisition of subsidiary company – – – – – – – 1 936 1 936 Acquisition of additional interest in subsidiary company – – – (392) – – (392) (188) (580) Disposal of subsidiaries – – – 527 – – 527 (422) 105 Share-based equity reserve transferred to retained income on vesting – – – – (576) 576 – – – Share-based payments expense – – – – 8 313 – 8 313 – 8 313 Share-based payments reserve utilised – – – – (3 104) – (3 104) – (3 104) Balance at 28 February 2015 156 086 19 933 (73 324) 21 599 15 435 309 297 449 026 (4 995) 444 031
112 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 113 About Wilderness Sustainability report Corporate governance Annual financial statements 113 | – – – 105 105 Total (554) (580) 6 151 P’000 313 8 313 1 936 2 383 equity (3 104) (2 093) (9 240) (2 208) 43 215 85 338 (23 100) 444 031 948 374 337 469 – – – – – – – – – (29) Non- (188) (422) P’000 1 634 1 936 634 3 634 (7 747) (7 259) (2 093) (4 995) (2 208) interest controlling Integrated Annual Report 2015 Holdings Limited Integrated Wilderness – – – – – – 527 Total (525) (392) 6 151 P’000 313 8 313 2 383 equity (3 104) 41 581 (9 240) 704 81 704 (23 100) 344 728 695 695 382 449 026 shareholders’ – – – – – – – – – 576 P’000 (1 118) 72 611 (4 497) (9 240) 46 147 income (23 100) 227 918 309 297 328 260 328 Retained – – – – – – – – – – – – – (576) 6 151 P’000 4 651 313 8 313 based (3 104) Share- 15 435 802 10 reserve payment – – – – – – – – – – – – 527 non- (525) (392) 1 118 Other P’000 4 497 16 374 599 21 599 20 346 reserves distributable – – – – – – – – – – – – – – – – – P’000 control reserve (73 324) (73 324) (73 324) Common – – – – – – – – – – – – – – – P’000 9 093 (4 566) 15 406 19 933 840 10 reserve Foreign currency translation – – – – – – – – – – – – – – – – P’000 2 383 Stated capital 153 703 153 703 156 086 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | Balance at 1 March 2013 Balance at 1 March portion interests' Non-controlling of dividend paid the year income for comprehensive Total Dividends paid reserve to re-insurance distributable reserves from Transfer in subsidiary company Acquisition of additional interest payments expense Share-based 2014 Balance at 28 February portion interests' Non-controlling of dividend paid scheme issue on settlement of share Share income for the year comprehensive Total Dividends paid reserve to re-insurance distributable reserves from Transfer Acquisition of subsidiary company in subsidiary company Acquisition of additional interest Disposal of subsidiaries income on vesting to retained transferred equity reserve Share-based payments expense Share-based utilised payments reserve Share-based 2015 Balance at 28 February 112 Consolidated statement of cash flows for the year ended 28 February
2015 2014 Notes P’000 P’000
Cash flow from operating activities Cash generated from operations 29 157 090 211 143 Interest received 2 501 1 279 Financing costs (7 108) (8 788) Taxation paid 30 (21 684) (19 208) Net cash inflow from operating activities 130 799 184 426
Cash flow from investing activities Acquisition of subsidiary companies 31 (313) – Disposal of subsidiary companies 32 1 495 – Additional investment in subsidiaries (580) (554) Additions to property, plant and equipment 33 (98 598) (69 955) Additions to intangible assets (585) (6 022) Proceeds on disposal of property, plant and equipment and intangibles 5 325 21 594 Proceeds on disposal of associate – 4 700 Cash flows from associates 910 (1 811) Movement in long-term loans receivable – 229 Net cash outflow from investing activities (92 346) (51 819)
Cash flow from financing activities Non-controlling interests' share of dividends (2 208) (2 093) Dividends paid (23 100) (9 240) Repayment of long-term liabilities (47 759) (48 517) Increases in long-term liabilities 3 408 26 891 Net cash outflow from financing activities (69 659) (32 959)
Net (decrease)/increase in cash and cash equivalents (31 206) 99 648 Unrealised exchange gain on foreign cash balances 14 404 11 434 Cash and cash equivalents at beginning of the year 250 719 139 637 Cash and cash equivalents at end of the year 34 233 917 250 719
114 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 115 About Wilderness Sustainability report Corporate governance Annual financial statements 115 | Revenue contracts with from customers when revenue recognises The Group it satisfies a performance obligation good or a promised transferring by The transfer service to its customer. occurs at a point when the customer obtains utility of the good or service. assessing, based This is determined by entered on the terms of the contract into, the extent of the performance and of the Group that is required determining whether the goods and distinct. are services to be delivered to Goods and services considered are be distinct if the customer can benefit or service the good from either on its that together with resources or own to the customer available readily are to transfer promise and the Group’s the good or service can be identified made other promises from separately in the contract. the Group Based on the foregoing, into with entered deems contracts the sale of customers that involve experiences at the travel leisure properties such own where Group’s properties located in remote are locations to be a single performance obligation on the basis that each item is highly dependent on other items that make up the bundle of goods and services obligations sold. Performance into entered arising on contracts properties located in that are involving urban and peri-urban locations as well party third as from properties dealt are with as distinct obligations and the recognised arising therefrom revenue based on the satisfaction of each of Where the performance obligations. acts as an intermediary on the Group parties,behalf of third it recognises based on the commission revenue upon. agreed structures information and the application information and the application in the inherent of judgement are Actual results formation of estimates. these could differ from in the future material to the estimates which may be annual financial statements. estimates and Significant accounting judgements include: Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Significant accounting estimates and judgements 1. the annual financial In preparing statements, management is required to make estimates and assumptions that affect to be reasonable believed in the Group the amounts presented annual financial statements and of available Use disclosures. related 1 January 2018 but allows for early for 1 January 2018 but allows adoption. to early adopt opted The Group with full retrospective the standard Group’s application as it is the does not view that IAS 18 Revenue adequate guidance regarding provide the matter of principal/agency and the accounting relationships the With that should be applied. issuance of IFRS now 15, the Group the regarding has specific guidance application of and accounting for the As principal/agency relationships. a consequence substantially more been collected information has now management by and considered years. than has been in previous has also been given Consideration to the manner in which the Group its constituted following is now and the years in recent reorganisation generates manner in which the Group view is the Group’s It its revenues. the that in light of all of the foregoing, adoption of IFRS 15 will better reflect and extent of its revenue- the nature activities. generating As a consequence of the adoption of IFRS exists that the 15, clarity now in an agency capacity was acting Group that it in some of the transactions into and as such, the cost of entered previously sales amounts that were in also been restated reported have been line with the changes that have amounts in order made to the revenue of to comply with the requirements IFRS 15. The impact of the adoption is disclosed in detail in note 3. The adoption of amendments to other has not had any material standards reportedimpact on previously figures. Changes policies in accounting and comparability has adopted certainThe Group amendments and new standards, to existing standards interpretations for the financial effective which are 2014. beginning on 1 March year adopted is Included in the standards IFRS with Contracts from 15 Revenue was issued The standard Customers. date of in May 2014 with an effective Functional and presentation and presentation Functional currency Items included in the financial statements of each of the Group’s the using measured entities are of the primary economic currency in which the entity environment The (functional currency). operates consolidated financial statements are (rounded in Botswana Pula presented thousand unless to the nearest otherwise stated), which is the Group’s currency. functional and presentation Basis of measurement and consolidated The separate prepared financial statements are on the historical cost basis except for certain been items which have in accordance at fair value measured with IFRS. Statement of compliance Statement The consolidated financial statements Limited at Holdings Wilderness of ended 28 February and for the year 2015 comprise the Company and its to as subsidiaries (together referred interest and the Group’s the Group) The in associates and joint ventures. and consolidated financial separate in been prepared statements have with International Financial accordance (IFRS).Reporting Standards Basis of preparation and and Basis of preparation measurement The principal accounting policies The principal accounting of these applied in the preparation consolidated financial and separate These set out below. statements are been consistently policies have unless presented, applied to all years otherwise stated. Summary policies accounting of significant 28 February ended for the year Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 114 Summary of significant accounting policies continued for the year ended 28 February
1. Significant accounting Useful lives and residual values of liabilities in the period in which such estimates and judgements property, plant and equipment and determination is made. intangible assets with finite useful continued The Group recognises the net future tax The nature of the goods and services lives benefit related to deferred tax assets provided by the Group is such that they Residual values of buildings, motor to the extent that it is probable that are delivered at times over a period of vehicles and aircraft are based on the deductible temporary differences time and sometimes at a point in time. current estimates of the value of these will reverse in the foreseeable future. However, due to the short period of assets at the end of their useful lives. Assessing the recoverability of deferred time over which such delivery occurs, The estimated residual values and tax assets requires the Group to all revenue is accounted for on the useful lives of buildings and motor make significant estimates related to basis of delivery at a point in time. vehicles have been determined by the expectations of future taxable income. directors based on industry experience, Estimates of future taxable income Trade receivables and loans and as well as anticipation of future events are based on forecast cash flows receivables that could impact these estimates. The from operations and application of estimated residual values and useful existing tax laws in each jurisdiction. The Group assesses trade receivables lives of aircraft have been determined To the extent that future cash flows and loans for impairment at each by the directors based on industry and taxable income differ significantly reporting date. In determining experience, the manufacturers’ from estimates, the ability of the Group whether an impairment loss should be recommendations and other available to realise the net deferred tax assets recorded in profit or loss, the Group marketplace information, including recorded at the reporting date could makes judgements as to whether but not limited to aviation bluebook be impacted. there is observable data indicating a valuations. measurable decrease in the estimated future cash flows from a receivable, Useful lives of intangible assets 2. Accounting policies the timing and quantum of estimated with finite useful lives are reviewed Revenue future cash flows and an appropriate on an annual basis to determine Revenue comprises the consideration discount rate to determine the present whether there is any indication that received or receivable on contracts value of such cash flows. the useful life may have changed or entered into with customers for that the assets may have suffered an the sale of goods and services in Impairment testing for goodwill impairment loss. If any such indication the ordinary course of the Group’s and non-monetary assets exists, the recoverable amounts of activities. Revenue is shown net of The recoverable amounts of cash- the assets are estimated in order to taxes and discounts and is recognised generating units and individual determine the extent, if any, of any as and when the Group satisfies its non-monetary assets are determined impairment loss. The estimated useful performance obligations as set out based on the higher of value-in-use lives of intangible assets with finite in the contracts entered into with its calculations and fair values less cost to usual lives have been determined customers. Revenue is recognised at sell. These calculations require the use by the directors based on industry the amount of the transaction price of estimates and assumptions. experience, as well as anticipation of that is allocated to each performance future events that could impact these obligation and this is determined The Group reviews and tests the estimates. at an amount that that depicts the carrying value of assets when events consideration to which the Group or changes in circumstances suggest Taxation expects to be entitled in exchange for that the carrying amount may not be Judgement is required in determining transferring the goods and services recoverable. In addition, goodwill the provision for income taxes due to promised to the customer. Revenue is tested on an annual basis for the complexity of legislation. There are recognised excludes all amounts impairment. Assets are grouped at many transactions and calculations for collected on behalf of third parties the lowest level for which identifiable which the ultimate tax determination such as when the Group acts in an cash flows are largely independent is uncertain during the ordinary course agency capacity and when it collects of cash flows of other assets and of business. The Group recognises value added taxes. liabilities. Estimates are prepared of liabilities for anticipated tax charges expected future cash flows for each based on estimates of whether The Group arranges leisure travel group of assets. Expected future cash additional taxes will be due. Where the experiences for its customers at flows used to determine the value in final tax outcome of these matters is properties that it owns as well as use of goodwill and tangible assets different from the amounts that were properties that are owned by external are inherently uncertain and could initially recorded, such differences will parties. It also provides transfer materially change over time. impact the income tax and deferred tax services to travellers. Revenue
116 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 117 About Wilderness Sustainability report Corporate governance Annual financial statements 117 | When the Group’s share of losses in an share When the Group’s its interest associate equals or exceeds does not in the associate, the Group furtherrecognise losses, unless it has obligations or made payments incurred on behalf of the associate. is The use of the equity method the date the Group discontinued from influence significant ceases to have an associate. over on transactions gains Unrealised and its associates the Group between to the extent of the eliminated are in the associates. interest Group’s also eliminated are losses Unrealised provides unless the transaction evidence of impairment of the asset Any impairment losses transferred. the carrying from deducted are in associate. amount of the investment the from Distributions received the carrying amount associate reduce of the investment. of the cost of acquisition Any excess of the net share the Group’s over assets, of the identifiable fair value liabilities and contingent liabilities of at the date the associate recognised within of acquisition, is recognised the carrying amount of the investment and is assessed for impairment as part of the total carrying amount when required. of share of the Group’s The excess of an associate’s the net fair value identifiable assets, liabilities and the cost is contingent liabilities over the carrying amount from excluded and is instead of the investment, included as a gain on a bargain or loss in in profit recognised purchase is the period in which the investment acquired. annual separate In the Company’s in financial statements, an investment an associate is carried at cost less any accumulated impairment. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness The fair value, at the date of at the date The fair value, of assets given, exchange, or assumed, and liabilities incurred the equity instruments issued by Company; plus attributable to Any costs directly of the subsidiary. the purchase Associates An associate is an entity in which the has significant influence but Group accompanying generally not control, 20% and of between a shareholding rights. Significant 50% of the voting to participateinfluence is the power in decisions the financial and operating or joint of the entity but is not control those policies. over control in associates are Investments accounted for using the equity initially method of accounting and are when the at cost, except recognised asset is classified as held-for-sale. Under the equity method, the Group’s or of the post-acquisition profits share in losses of associates is recognised of post- or loss, and its share profit acquisition other comprehensive in other income is recognised income. comprehensive an acquisition-by-acquisition basis, an acquisition-by-acquisition or at the non- either at fair value proportionate interest’s controlling amounts of the of the recognised share net assets. identifiable acquiree’s annual separate In the Company’s in investments financial statements, any carried at cost less subsidiaries are accumulated impairment. in a The cost of an investment of: subsidiary is the aggregate • • An adjustment to the cost of a business combination contingent on future is included in the cost of the events combination if the adjustment is reliably. can be measured and probable applies a policy of treating The Group with non-controlling transactions in a change do not result which interest with equity as transactions in control and recognises of the Group owners in equity. directly such transactions Subsidiary undertakings, which are which the Group, those companies over have has control, or indirectly, directly controls Group The been consolidated. an entity when it is exposed to, or its from returns has rights to, variable with the entity and has the investment through ability to affect those returns activities. the entity’s over its power consolidated from Subsidiaries are control the date on which effective and are to the Group is transferred the date of when de-consolidated from the Group. by of control is a loss there transactions, All inter-company balances, income and expenses and surpluses and deficits unrealised Group between on transactions been eliminated. companies have losses may indicate an Intragroup in recognition impairment that requires the consolidated financial statements. On acquisition, the assets and measured liabilities of a subsidiary are determined at the date at fair value the extent that the To of acquisition. the exceeds consideration purchase of the identifiable net assets fair value is recognised the difference acquired, the identifiable net Where as goodwill. the purchase exceed assets acquired is recognised the excess consideration, immediately as a gain on a bargain or loss. in profit purchase any non- recognises The Group on acquiree in the interest controlling Consolidation and businessConsolidation combinations Subsidiaries is recognised when services is recognised are the to the customer from provided of the travel date of commencement service transfer experience or when the is provided. a service provides the Group Where parties, is on behalf of third revenue as the amount of servicerecognised as determined based fees receivable into with the entered on the agreement principal party and in the arrangement is accounted for at the such revenue point at which the service is provided. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 116 Summary of significant accounting policies continued for the year ended 28 February
2. Accounting policies that includes a foreign operation), all of Property, plant and equipment is carried continued the exchange differences accumulated at cost less accumulated depreciation in equity in respect of that operation and any impairment losses. Foreign currency translations attributable to the equity holders of Items included in the financial the Company are reclassified to profit Depreciation is provided on all statements of each of the Group’s or loss. property, plant and equipment other entities are measured using the than freehold land and work in currency of the primary economic In the case of a partial disposal progress, to write down the cost, less environment in which the entity that does not result in the Group residual value, by equal instalments operates (functional currency). The losing control over a subsidiary that over their useful lives (except for consolidated and separate financial includes a foreign operation, the aircraft engines which are depreciated statements are presented in Pula which proportionate share of accumulated as noted below) as follows: is the Group’s presentation currency. exchange differences is re-attributed to non-controlling interests and is Average Transactions in currencies other than not recognised in profit or loss. For Item useful life the functional currency are initially all other partial disposals (that is, Leasehold land and The lesser of recorded at the rates of exchange reductions in the Group’s ownership property 10 years or ruling on the dates of the transactions. interest in associates or jointly life of lease At each reporting date, monetary controlled entities that do not result in assets and liabilities denominated the Group losing significant influence Vehicles, computer 3 – 10 years in such currencies are translated to or joint control) the proportionate equipment, the functional currency at the rates share of the accumulated exchange furniture, fittings and prevailing on the reporting date. Non- difference is reclassified to profit equipment monetary items that are denominated or loss. in foreign currencies and measured Aircraft at fair values determined in foreign Goodwill arising on the acquisition of – Frames 20 – 30 years currencies are translated at the rates a foreign operation is treated as an – Engines Hours flown prevailing at the date when the fair asset of the foreign operation and is value was determined. translated at the reporting date rate. Each part of an item of property, plant and equipment with a cost that is Assets and liabilities of foreign Property, plant and equipment significant in relation to the total cost operations are translated to Pula at The cost of an item of property, plant of the item is depreciated separately. the rates prevailing on the reporting and equipment is recognised as an date. Income and expense items asset when: The depreciation charge for each are translated at average exchange period is recognised in profit or loss, • It is probable that future economic rates (unless this average is not unless it is included in the carrying benefits associated with the item a reasonable approximation of amount of another asset. the cumulative effect of the rates will flow to the Group; and prevailing on the transaction dates, • The cost of the item can be The assets’ residual values, useful lives in which case income and expenses measured reliably. and depreciation methods are reviewed are translated at the rate on the dates and adjusted, if appropriate, at each of the transactions). All resulting Cost includes cost incurred initially reporting date. An asset’s carrying exchange differences are recognised to acquire or construct an item of amount is written down immediately as a separate component of equity property, plant and equipment and to its recoverable amount if the asset’s costs incurred subsequently to add to with movements between periods carrying amount is greater than its or replace part of an asset, or major recognised in other comprehensive estimated recoverable amount. income. overhaul costs. If a replacement cost is recognised in the carrying amount of an Gains and losses on disposals are On the disposal of a foreign operation item of property, plant and equipment, determined by comparing proceeds (that is, a disposal of the Group’s entire the carrying amount of the replaced with the carrying amount. These are interest in a foreign operation, or a part is derecognised. All other repairs recorded in profit or loss. disposal involving loss of control over and maintenance are charged to profit a subsidiary that includes a foreign or loss when incurred. Intangibles operation, a disposal involving loss of Costs incurred on development of joint control over a jointly controlled The initial estimate of the costs of intangible assets are capitalised when entity that includes a foreign operation, dismantling and removing the item and cost can be measured reliably, the or a disposal involving loss of restoring the site on which it is located product is technically and commercially significant influence over an associate is also included in the cost of property, plant and equipment. feasible, future economic benefits
118 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 119 About Wilderness Sustainability report Corporate governance Annual financial statements 119 | Inventories stated at the lower are Inventories Cost value. of cost and net realisable using the weighted is determined by all comprises and method, cost average costs of conversion costs of purchase, in bringing the and other costs incurred location to their present inventories made for is and condition. Provision inventory. obsolete and slow-moving is the estimated value Net realisable course selling price in the ordinary of business, less applicable variable selling expenses. sold, the are When inventories carrying amount of those inventories as an expense in the is recognised is revenue period in which the related The amount of any write- recognised. to net realisable of inventories down and all losses of inventories value as an expense in the recognised are or loss occurs. period the write-down of any The amount of any reversal from arising of inventories, write-down value, in net realisable an increase in the as a reduction is recognised as recognised amount of inventories an expense in the period in which the occurs. reversal If the recoverable amount of an asset amount If the recoverable unit) is estimated (or cash-generating amount, to be less than its carrying the asset (or the carrying amount of to its unit) is reduced cash-generating An impairment amount. recoverable immediately in profit loss is recognised or loss. an impairment loss Where the carrying subsequently reverses, amount of the asset (or cash- to the unit) is increased generating of its recoverable estimate revised amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment for the asset (or loss been recognised unit) in prior years. cash-generating impairment loss is of an A reversal in profit immediately recognised or loss. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Impairment (excluding goodwill) At each reporting date, the Group is any considers whether there indication that assets may have an impairment loss. If any suffered such indication exists, the recoverable amount of the asset is estimated in to determine the extent of the order it is not Where impairment loss, if any. possible to estimate the recoverable amount of an individual asset, the estimates the recoverable Group unit to amount of the cash-generating which the asset belongs. of an asset amount The recoverable unit is the higher or cash-generating less costs to sell, or its of its fair value in use, in use. In assessing value value are cash flows the estimated future using value discounted to their present reflects that discount rate a pre-tax time the of assessments market current of money and the risks specific value to the asset for which the estimates not been have cash flows of future adjusted. incentives from the lessor) are charged charged the lessor) are from incentives to the statement of comprehensive the basis over income on a straight-line period of the lease. Goodwill Goodwill on acquisitions of associates in associates is included in investments and is tested for impairment as part of balance. the overall Goodwill is tested annually for impairment and is carried at cost less accumulated impairment losses. For the purposes of impairment testing, goodwill is allocated to each of the units cash-generating Group’s the synergies expected to benefit from of the combination. Impairment losses on goodwill shall not be periods. Gains in future and reversed losses on the disposal of an entity include the carrying amount of related goodwill. Leases where a significant portion where of Leases are of ownership the risks and rewards classified the lessor are by retained made leases. Payments as operating leases (net of any under operating
Useful life 3 – 6 years of the Period lease Item Computer software premium Leasehold Leases plant and of property, Leases assumes Group the equipment where substantially all the risks and rewards as finance classified are of ownership capitalised leases. Finance leases are at the inception of the lease at the of the leased of the fair value lower of the property value or the present minimum lease payments. Each lease payment is allocated the liability and finance between a constant so as to achieve charges on the finance balance rate rental The corresponding outstanding. obligation, net of the finance charges, payables. long-term other in included is element of the finance The interest to the statement of cost is charged the lease income over comprehensive a constant period so as to produce on the of interest periodic rate balance of the liability for remaining plant and The property, each period. under finance equipment acquired the shorter over depreciated leases are of the useful life of the asset or the lease term. expected useful lives. The following The following expected useful lives. amortisation applicable: are rates Costs incurred on acquisition of Costs incurred capitalised intangible assets are reliably. when cost can be measured all Subsequent to initial recognition, at measured intangible assets are cost less accumulated amortisation and impairment losses. Intangible not assets with an indefinite life are amortised, while the depreciable amount of intangible assets with a amortisedfinite useful life are on the r their basis ove straight-line from the use or sale of the product the use or sale of the product from resources and sufficient probable are complete the to in order available are as intended. development Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 118 Summary of significant accounting policies continued for the year ended 28 February
2. Accounting policies Trade receivables receivables or any reduction in trade continued Trade receivables are measured at receivables directly against the asset initial recognition at fair value, and are account is recorded in operating profit. Financial instruments subsequently measured at amortised Subsequent recoveries of amounts The Group classifies its financial cost using the effective interest rate previously written off are credited to instruments, or their component parts, method. Appropriate allowances for operating expenditure in profit or loss. on initial recognition as a financial estimated irrecoverable amounts asset, a financial liability or an equity are recognised in profit or loss when Cash and cash equivalents instrument when the Group becomes there is objective evidence that the Cash and cash equivalents comprise party to the contractual provisions of Group will not be able to collect all the cash on hand, demand deposits the instrument. amounts due according to the original and other short-term highly liquid terms of the receivables. investments with original maturities Financial assets of three months or less, and The Group classifies financial assets Objective evidence includes observable bank overdrafts that are readily in the following categories: at fair data about the following loss events: convertible to a known amount value through profit or loss, and loans • Significant financial difficulty of the of cash and are subject to an and receivables. The classification debtor; insignificant risk of changes in value. depends on the purpose for which the • Breach of contract; These are initially recorded at fair financial assets were acquired and the value and subsequently measured at • Creditor granting concessions nature and terms of the instrument amortised cost. to the debtor which it would not itself. Management determines the normally consider, but for the classification of its financial assets at debtor’s financial difficulty; Financial liabilities initial recognition. The Group classifies financial liabilities • It becomes probable that the in the following categories: at fair Financial assets, other than debtor will enter bankruptcy or value through profit or loss, and investments in subsidiaries, are other financial reorganisation; amortised cost. The classification recognised on a trade-date basis and • The disappearance of an active depends on the purpose for which are initially measured at fair value, market for the debtor; and the financial liabilities were acquired including transaction costs. • An increase in delayed payments and the nature and terms of the from the debtor or an increase in instrument itself. Management Financial assets at fair value through the number of times the debtor determines the classification of profit or loss (held-for-trading) exceeds its credit limit. its financial liabilities at initial A financial asset is classified under recognition. this category if acquired principally The allowance recognised is measured for the purpose of selling in the short as the difference between the asset’s Financial liabilities are recognised on term, or it is part of an identified carrying amount and the present a trade-date basis and are initially portfolio of financial instruments that value of estimated future cash flows measured at fair value, including the Group manages together and has discounted at the effective interest rate transaction costs. a recent actual pattern of short-term computed at initial recognition. profit-taking. Derivatives are classified Financial liabilities at fair value as held-for-trading unless they are In instances where there is clear and through profit or loss (held-for- designated as hedges. All items under unassailable evidence that a trade trading) receivable has been impaired and that this category are measured at fair A financial liability is classified under there is no evidence to indicate that value with changes recognised in profit this category if acquired principally the trade receivable is recoverable or loss. for the purpose of selling in the short and all reasonable measures to term, or it is part of an identified recover the amount have been Loans and other receivables portfolio of financial instruments that exhausted, the Group would reduce Loans and receivables are non- the Group manages together and has the carrying amount of the impaired derivative financial assets with fixed a recent actual pattern of short-term trade receivable directly against the or determinable payments that are not profit-taking. Derivatives are classified asset account or the provision for quoted in an active market. The main as held-for-trading unless they are impairment of trade receivables if one components of the Group’s loans and designated as hedges. All items under had previously been raised. receivables comprise “loans to related this category are measured at fair parties”, “trade and other receivables” Any increase or decrease in the value with changes recognised in profit and “cash and cash equivalents”. provision for impairment of trade or loss.
120 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 121 About Wilderness Sustainability report Corporate governance Annual financial statements 121 | Current tax and deferred taxes are are taxes tax and deferred Current to other directly or credited charged relates tax the if income comprehensive in or charged, credited to items that are period, to other the same or a different income. comprehensive is accounted for using tax Deferred of respect the liability method in arise which differences temporary the carrying between differences from amount of assets and liabilities in the financial statements and the tax basis used in corresponding the computation of taxable income. income tax is the deferred However, initial not accounted for if it arises from an asset or liability in of recognition other than a business a transaction combination that at the time of the neither accounting affects transaction or loss. Deferred nor taxable profit income tax is determined using tax been that have (and laws) rates enacted or substantially enacted by the reporting expected date and are deferred to apply when the related or the income tax asset is realised income tax liability is settled. deferred tax liabilities are In principle, deferred all taxable temporary for recognised tax assets deferred and differences to the extent that it is recognised are taxable income will be that probable against which deductible available can be utilised. differences temporary income tax assets and Deferred is offset when there liabilities are right to offset a legally enforceable tax assets against current current tax liabilities and when the deferred income tax assets and liabilities relate the same levied by to income taxes taxation authority on either the taxable taxable entities entity or different is an intention to settle the there where balances on a net basis. tax of deferred The carrying value at each reporting assets is reviewed to the extent that it date and reduced that sufficient is no longer probable taxable income will be available all or partto allow of the asset to be recovered. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Income tax the sum of The tax expense represents payable and deferred the tax currently payable is The tax currently tax. based on taxable income for the net income differs from Taxable year. income as reported in the statement income because it of comprehensive includes items of income or expense taxable or deductible in other that are periods and it further items excludes taxable or deductible. never that are is income tax charge The current calculated on the basis of the tax laws enacted at the enacted or substantively reporting date in the countries where and associates subsidiaries the Group’s income. taxable and generate operate Management periodically evaluates with positions taken in tax returns to situations in which respect is subject to applicable tax regulation It establishes provisions interpretation. on the basis of appropriate where amounts expected to be paid to the tax authorities. Dividends when recognised Dividends are payment is the right to receive established. capital Stated equity. as classified are shares Ordinary attributable costs directly Incremental or options to the issue of new shares in equity as a deduction, net shown are proceeds. the of tax, from company purchases any Group Where capital equity share the Company’s the consideration shares), (treasury attributable paid, including any directly costs (net of income taxes) incremental equity attributable is deducted from equity holders until to the Company’s cancelled or reissued. are the shares subsequently are shares such Where received, consideration any reissued, attributable net of any directly costs and the transaction incremental tax effects, is included income related in equity attributable to the Company’s equity holders. Interest on income is recognised Interest a time-proportion basis using the When a method. interest effective the carrying is impaired, receivable to its recoverable amount is reduced amount, being the estimated future original discounted at the cash flow instrument, the of rate interest effective and continues unwinding the discount income on income. Interest as interest using the loans is recognised impaired rate. interest original effective Equity instruments a An equity instrument represents that evidences a residual contract in the net assets of an entity. interest the Equity instruments issued by at the proceeds recorded Company are costs. issue net of direct received, Bank overdrafts and borrowings are are and borrowings Bank overdrafts net of at fair value initially measured and are incurred, costs transaction at amortisedsubsequently measured the between cost; any difference costs) of transaction (net proceeds of and the settlement or redemption the over is recognised borrowings using the term of the borrowings method. Finance interest effective payable including premiums charges, are on settlement or redemption, accounted for on an accrual basis and the carrying amount of added to are the instrument to the extent that they in the period in which not settled are they arise. classified as current are Borrowings has an liabilities unless the Group unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Bank overdraft and borrowings Bank overdraft Financial liabilities at amortisedFinancial liabilities at cost non- liabilities which are These are financial liabilities with fixed derivative The main or determinable payments. financial components of the Group’s liabilities at amortised cost comprise and borrowings” and “bank overdrafts and other payables”. “trade Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 120 Summary of significant accounting policies continued for the year ended 28 February
2. Accounting policies Employee termination payments are Provisions continued recognised when the Group has a A provision is recognised when there present legal or constructive obligation is a legal or constructive obligation as Employee benefits as a result of past events, it is more a result of a past event for which it is Short-term employee benefits likely than not that an outflow of probable that an outflow of economic The cost of short-term employee resources will be required to settle the benefits will be required to settle benefits (those payable within obligation, and the amount has been the obligation and the amounts have 12 months after the service is rendered, reliably estimated. been reliably estimated. Provisions such as paid vacation leave and sick are continually re-assessed and are leave and bonuses) are recognised Share-based payments based on historical experience and in the period in which the service is The Group issues equity-settled other factors such as reasonable rendered and are not discounted. share-based payments to certain expectations of future events. employees. Equity-settled share- Provisions are not recognised for future The expected cost of compensated based payments are measured at fair operating losses. absences is recognised as an expense value at the grant date. The fair value as the employees render services that determined at the grant date of the Common control accounting increase their entitlement or, in the equity-settled share-based payments The Group applies merger accounting case of non-accumulating absences, is expensed on a straight-line basis for all its common control transactions when the absence occurs. over the vesting period, based on the which requires that the assets and Group’s estimate of shares that will The expected cost of profit-sharing liabilities of the purchased business be eventually vest, with a corresponding and bonus payments is recognised incorporated at the consolidated book increase in equity. At the end of each as an expense when there is a legal value (by the ultimate parent) reporting period, the Group revises or constructive obligation to make and the difference between the its estimate of the number of equity such payments as a result of past purchase consideration and the book instruments expected to vest. The performance. value of the assets and liabilities impact of the revision of the original be recorded in equity as a common estimates, if any, is recognised in control reserve. The financial Defined contribution plans profit or loss such that the cumulative statements of the purchaser Payments to defined contribution expense reflects the revised estimate, incorporate the combined companies’ retirement benefit plans are charged as with a corresponding adjustment to results and cash flows as if companies an expense as they fall due. the equity-settled employee benefits have always been combined, reserve. Payments made to industry- or state- including the re-presentation of the managed retirement schemes are dealt Fair value is measured by the use of a comparative figures. with as defined contribution plans Black-Scholes option pricing model. where the Group’s obligation under Standards, interpretations and the schemes is equivalent to those Borrowing costs amendments to published arising in a defined contribution Borrowing costs directly attributable standards that are not yet effective retirement plan. to the acquisition, construction or The following new standards, production of qualifying assets, which amendments and interpretations Gratuities and severance plans are assets that necessarily take a to existing standards have been The Company does not provide substantial period of time to get published that are applicable for future pension benefits for its employees, ready for their intended use or sale, accounting periods but have not been but operates a gratuity scheme for are added to the cost of these assets, adopted early by the Group: expatriates in terms of employment until such time as the construction contracts, and a severance benefit or development of such assets is IAS 1 Presentation of Financial scheme for citizens in terms of Section substantially complete. Statements (effective for financial 28 of the Botswana Employment Act. periods commencing on or after Severance pay is not considered to be a Investment income earned on the 1 January 2016) retirement benefit plan as the benefits temporary investment of specific This amendment is designed are payable on completion of each borrowings pending their expenditure to encourage entities to apply 60 month period of continuous on qualifying assets is deducted professional judgement in determining employment or on termination of from the borrowing costs eligible what information to disclose in their employment, at the option of the for capitalisation. All other borrowing financial statements. For example, employee. The expected gratuity and costs are recognised in profit or loss the amendments make it clear that severance benefit liability is provided in the period in which they are materiality applies to the whole of in full by way of an accrual. incurred. financial statements and that the
122 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 123 About Wilderness Sustainability report Corporate governance Annual financial statements 123 | IAS 39 Financial Instruments: and Measurement Recognition for financial periods (effective commencing on or after 1 January (amended) 2017) The amendment to IAS 39 permits an entity to elect to continue to apply the hedge accounting requirements hedge of the in IAS 39 for a fair value of a portion exposure rate interest of a portfolio of financial assets or financial liabilities when IFRS 9 is applied, and to extend the fair value option to certain that meet contracts The scope exception. use’ the ‘own is still determining the impact Group of the amendment on the financial statements. IAS Property 40 Investment for financial periods (effective commencing on or after 1 July 2014) (amended) The amendment to IAS from 40 results 2011 – 2013 the Annual Improvements and clarifies the interrelationship Cycle IFRSbetween The Group 3 and IAS 40. is still determining the impact of the amendment on the financial statements. IAS 38 Intangible Assets (effective commencing on for financial periods or after 1 January 2016) The amendments to IAS 16 and IASclarify the basis for the 38 and calculation of depreciation amortisation, as being the expected pattern of consumption of the future economic benefits of an asset, as as establishing the principle well and for the basis of depreciation amortisation as being the expected pattern of consumption of the future economic benefits of an asset. It also is generally revenue clarifies that be an inappropriate to presumed basis for measuring the consumption of economic benefits in such assets. is still determining the The Group impact of the amendment on the financial statements. the amendment on the financial the amendment on the statements. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness IAS Assets (effective 38 Intangible for financial periods commencing on or after 1 July 2014) (amended) The amendment to IAS from 38 results 2010 – 2012 the Annual Improvements and calls for a proportionate Cycle of accumulated restatement The Group on revaluation. depreciation is still determining the impact of IAS in Associates 28 Investments for (effective Ventures and Joint financial periods commencing on or after 1 January 2016) The amendment introduces requirements clarifications to the when accounting for investment The amendments also provide entities. in particularrelief circumstances, the costs of which will reduce The Group applying the Standards. is still determining the impact of the amendment on the financial statements. IAS Financial 27 Separate for financial (effective Statements periods commencing on or after 1 January 2016) The amendment to IAS 27 allows entities to use the equity method to subsidiaries, in investments for account associates in their and joint ventures The financial statements. separate determining the impact is still Group of the amendment on the financial statements. IAS 24 Related Party IAS Disclosures 24 Related for financial periods (effective 1 July 2014) commencing on or after (amended) The amendment to IAS 24 results 2010 – the Annual Improvements from and clarifies that an entity 2012 Cycle key management personnel providing services to the reporting entity or of the reportingto the parent entity partyis a related of the reporting is still determining The Group entity. the impact of the amendment on the financial statements. service. The Group is still determining The Group service. on the the impact of the amendment financial statements. IAS 19 Employee Benefits (effective IAS Benefits (effective 19 Employee for financial periods commencing on or after 1 July 2014) (amended) The amendment to IAS 19 clarifies to how that relate the requirements or employees contributions from partiesthird linked to service that are should be attributed to periods of IAS 16 Property, Plant and Plant IAS 16 Property, for financial Equipment (effective periods commencing on or after 1 January 2016) The amendments to IAS 16 and IAS 38 clarify the basis for the calculation of and amortisationdepreciation as being the expected pattern of consumption economic benefits of of the future as establishing the an asset, as well principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. It also is generally revenue clarifies that basis to be an inappropriate presumed for measuring the consumption of economic benefits in such assets with The circumstances. some exceptional is still determining the impact Group of the amendment on the financial statements. 16 Property, Plant and IAS 16 Property, for financial Equipment (effective periods commencing on or after 1 July 2014) (amended) The amendment to IAS from 16 results 2010 – 2012 the Annual Improvements and calls for a proportionate Cycle of accumulated restatement The on revaluation. depreciation determining the impact is still Group of the amendment on the financial statements. inclusion of immaterial information inclusion of immaterial of financial can inhibit the usefulness Furthermore, the disclosures. the reportingamendments clarify that entity should use its professional and where judgement in determining information is presented in what order The in the financial disclosures. is still determining the impact Group the financial of the amendment on statements. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 122 Summary of significant accounting policies continued for the year ended 28 February
2. Accounting policies IFRS 7 Financial Instruments: when accounting for loss of continued Disclosures (effective for financial control of a subsidiary. The Group periods commencing on or after is still determining the impact of Standards, interpretations and 1 January 2017) (amended) the amendment on the financial amendments to published statements. standards that are not yet effective The amendment to IFRS 7 deals with additional hedge accounting continued disclosures (and consequential IFRS 11 Joint Arrangements (effective IFRS 2 Share-based Payment amendments) resulting from the for financial periods commencing on (effective for financial periods introduction of the hedge accounting or after 1 January 2016) commencing on or after 1 July 2014) chapter in IFRS 9. The Group is The amendment introduces (amended) still determining the impact of clarifications to the requirements The amendment results from the the amendment on the financial when accounting for investment Annual Improvements 2010 – 2012 statements. entities. The amendments also provide Cycle and clarifies the definition relief in particular circumstances, of vesting condition. The Group IFRS 8 Operating Segments which will reduce the costs of is still determining the impact of (effective for financial periods applying the Standards. The Group the amendment on the financial commencing on or after 1 July 2014) is still determining the impact of statements. (amended) the amendment on the financial The amendment results from the statements. IFRS 3 Business Combinations Annual Improvements 2010 – 2012 (effective for financial periods Cycle and clarifies the aggregation IFRS 12 Disclosure of Interests in commencing on or after 1 July 2014) of operating segments, and Other Entities (effective for financial (amended) reconciliations of assets. The Group periods commencing on or after The amendment results from the is still determining the impact of 1 January 2016) Annual Improvements 2010 – 2012 the amendment on the financial The amendment introduces Cycle and clarifies the definition statements. clarifications to the requirements of contingent consideration. The when accounting for investment Group is still determining the impact IFRS 9 Financial Instruments entities. The amendments also provide of the amendment on the financial (effective for financial periods relief in particular circumstances, statements. commencing on or after 1 January which will reduce the costs of 2018) applying the Standards. The Group IFRS 3 Business Combinations This standard will replace IAS 39 is still determining the impact of (effective for financial periods Financial Instruments: Recognition the amendment on the financial commencing on or after 1 July 2014) and Measurement. The Group is statements. (amended) still determining the impact of The amendment results from the the amendment on the financial IFRS 13 Fair Value Measurement Annual Improvements 2011 – 2013 statements. (effective for financial periods Cycle and clarifies the scope commencing on or after 1 July 2014) exception for joint ventures. The IFRS 10 Consolidated Financial (amended) Group is still determining the impact Statements (effective for financial The amendment results from the of the amendment on the financial periods commencing on or after Annual Improvements 2010 – 2012 statements. 1 January 2016) Cycle and clarifies the measurement The amendment introduces requirements for short-term IFRS 7 Financial Instruments: clarifications to the requirements receivables and payables. The Group Disclosures (effective for financial when accounting for investment is still determining the impact of periods commencing on or after entities. The amendments also provide the amendment on the financial 1 January 2017) (amended) relief in particular circumstances, statements. The amendment to IFRS 7 deals which will reduce the costs of with disclosures regarding the applying the Standards. The Group IFRS 13 Fair Value Measurement transition to IFRS 9 (or otherwise is still determining the impact of (effective for financial periods when IFRS 9 is first applied). The the amendment on the financial commencing on or after 1 July 2014) Group is still determining the impact statements. (amended) of the amendment on the financial The amendment results from statements. The amendment introduces the Annual Improvements clarifications to the requirements 2011 – 2013 Cycle and clarifies the
124 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 125 About Wilderness Sustainability report Corporate governance Annual financial statements 125 | Integrated Annual Report 2015 Holdings Limited Integrated Wilderness The amendment to IFRS 12 clarified the pertainingconsolidation exemption to and the Group The entities. investment entities as not investment Company are this amendment will defined therefore or consolidated not affect the separate financial statements. for IFRIC (effective Levies 21 financial periods commencing on or after 1 January 2014) IFRIC guidance on when to 21 provides for a levy imposed a liability recognise for levies both a government, by for in accordance accounted that are Contingent with IAS 37 Provisions, Liabilities and Contingent Assets and the timing and amount of those where the levy is certain. standards, All the new and revised and amendments that interpretations applicable and were became effective ended for the year to the Group been adopted. 2015 have 28 February IFRS Consolidated Financial 10 for financial (effective Statements on or after periods commencing 1 January 2014) (amended) The amendment to IFRS 10 clarified the pertainingconsolidation exemption to and the The Group entities. investment as entities not investment Company are this amendment will defined therefore or consolidated not affect the separate financial statements. in IFRS of Interests Disclosure 12 for financial Other Entities (effective periods commencing on or after 1 January 2014) (amended) IAS of Assets 36 Impairment for financial periods (effective commencing on or after 1 January (amended) 2014) The amendment to IAS 36 clarifies in terms of required the disclosures for Amount Disclosures Recoverable Non-Financial Assets. The amendment to IAS 32 prescribes rules for the offsetting of financial assets and financial liabilities. The amendment to IAS 27 clarifies the pertaining requirements to investment entities. IAS Financial Instruments: 32 for financial (effective Presentation periods commencing on or after 1 January (amended) 2014) Standards, interpretations and interpretations Standards, amendments to published standards and applicable to effective that are the Group IAS Financial 27 Separate for financial (effective Statements periods commencing on or after 1 January 2014) (amended) IFRS Deferral 14 Regulatory for financial Accounts (effective on or after periods commencing 1 January 2016) This amendment permits first-time adopters to continue to recognise regulated to its rate amounts related with their activities in accordance when GAAP requirements previous to enhance they adopt IFRS. However, with entities that apply comparability IFRS such and do not recognise that requires amounts, the Standard must be regulation the effect of rate other items. from separately presented IFRS presents An entity that already financial statements is not eligible to apply the Standard. scope of the portfolio exception is The Group 52. in paragraph of still determining the impact financial the amendment on the statements. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 124 Notes to the consolidated annual financial statements for the year ended 28 February
3. Revenue
2015 2014 P’000 P’000
3.1 Impact of adoption of IFRS 15 Revenue under IAS 18 1 505 790 1 401 206 Adjustment due to adoption of IFRS 15 561 204 557 918 Revenue as reported under IFRS 15 944 586 843 288 3.2 Revenues by type of service Travel experience 840 265 752 921 Service fees 77 200 65 977 Other 27 121 24 390 944 586 843 288 3.3 Revenue by geographical region Botswana 459 245 417 156 Namibia 171 287 144 540 South Africa 683 987 601 288 Zambezi 146 621 137 149 Intergroup (516 554) (456 845) Group 944 586 843 288 3.3 Revenue by source market (%) Africa and the Middle East 24 20 Americas 50 53 Australasia 3 4 Europe and Asia 23 23 100 100 3.4 Cost of sales Cost of sales under previous basis 863 176 816 387 Adjustment due to adoption of IFRS 15 561 204 557 918 Cost of sales as reported under IFRS 15 301 972 258 469
4. Operating profit Operating profit is arrived at after taking into account the following items:
2015 2014 P’000 P’000
Depreciation and amortisation: Vehicles, furniture, fittings and equipment 24 653 22 999 Aircraft 7 592 6 854 Leasehold land and property 20 184 19 154 52 429 49 007 Amortisation of intangible assets 3 467 1 086 Total depreciation and amortisation 55 896 50 093
126 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 127 About Wilderness Sustainability report Corporate governance Annual financial statements 127 | – – – (99) 125 423 708 2014 1 315 1 813 6 151 P’000 1 897 4 133 1 004 2 813 5 874 8 902 6 509 5 038 7 087 3 759 2 090 5 690 5 565 7 503 11 271 10 861 (9 546) 12 975 16 734 27 562 37 462 289 509 – – 152 187 534 343 500 434 (127) 2015 1 057 167 8 167 P’000 2 156 1 780 313 8 313 8 103 570 3 570 4 533 636 7 636 4 354 4 047 9 523 7 094 2 626 9 044 175 175 10 (3 754) 720 12 (4 998) 824 824 10 28 634 38 896 952 309 952 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness continued Short-term benefits employee payments Share-based Post-employment benefits Post-employment Realised Realised Unrealised fee year Current provision over year Prior Other servicesexpenses and Premises Office and plant equipment and vehicles Aircraft Executive directors directors Executive Non-executive directors’ fees directors’ Non-executive Operating profit Operating profit Impairment loss on financial instruments Impairment loss on financial Impairment loss on goodwill Impairment loss on associates Impairment loss on intangibles gains (losses) exchange Foreign gains exchange Net foreign fees and professional Legal remuneration Auditors’ Impairment loss on property, plant and equipment plant and equipment Impairment loss on property, impairment loss Total rentals lease Operating Resource royalty royalty Resource plant and equipment on disposal of property, Net profit on disposal of subsidiaries Net profit on disposal of associates Net (loss)/profit costs Staff Number of employees emoluments Directors’ Share-based payments expense Share-based 4. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 126 Notes to the consolidated annual financial statements continued for the year ended 28 February
5. Financing costs
2015 2014 P’000 P’000
Interest paid Finance leases and loans 3 918 4 678 Bank overdraft and trade finance 3 190 4 110 7 108 8 788
6. Taxation
2015 2014 P’000 P’000
6.1 Taxation charge Current taxation Company taxation 29 429 19 265 Under/(over) provision prior year 132 (1 761) 29 561 17 504 Deferred taxation – current year (note 14) 2 327 9 525 – prior year (note 14) (91) 1 243 31 797 28 272 Withholding tax 666 759 Total taxation charge 32 463 29 031
6.2 Reconciliation of taxation rate to profit before taxation % %
Company normal tax rate – Botswana 22.0 22.0 Effect of income that is exempt from taxation (1.6) (2.6) Effect of expenses that are not deductible in determining taxable profit 8.2 4.8 Adjustments recognised in the current year in relation to current tax of prior year 0.1 (1.9) Effect of different tax rates of subsidiaries in other jurisdictions 1.9 3.4 Effect of unused tax losses and tax offsets not recognised as deferred tax assets 2.3 10.3 Effect of utilisation of tax losses not previously recognised (2.7) (0.2) Prior year deferred tax adjustments (0.1) 1.4 Share of results of associates (0.8) (0.8) Withholding tax 0.6 1.0 Effective taxation rate 29.9 37.4
Certain subsidiaries had tax losses at the end of the financial year that are available to reduce the future taxable income of the Group estimated to be 167 776 218 152
128 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 129 About Wilderness Sustainability report Corporate governance Annual financial statements 129 | Net 361 423 2014 19.98 19.72 16.07 15.86 P’000 1 897 7 875 459 3 459 (1 057) (5 713) (3 051) 72 611 37 121 (2 582) (8 000) 46 147 75 249 3 003 426 231 000 000 231 000 000 234 003 426 500 423 2015 31.35 Gross P’000 31.66 1 897 30.55 32.49 32.49 9 523 4 998 (1 057) (3 051) (2 582) (4 763) 834) (10 903 6 123 231 588 301 204 712 237 451 231 882 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness IFRS discontinued operations assets held for sale and 5 – Non-current IAS 38 – Impairment of intangible assets IAS 16 – Gains on disposal of property, plant and equipment plant and IAS 16 – Gainsof property, on disposal IAS 36 – Impairment of assets IAS 38 – Impairment of intangible assets on disposal of associates IAS 28 and 31 – Loss IAS 36 – Impairment of assets IAS 16 – Gains and compensation on disposal and impairment of property, IAS 16 – Gains on disposal and impairment of property, and compensation plant and equipment IAS 27 – Gains on disposal of subsidiaries IAS 28 and 31 – Profit on disposal of associates IAS 28 and 31 – Profit At end of the year Shares for earnings per share Shares Staff share scheme share Staff Basic Diluted Headline Diluted headline Headline profit Headline profit Headline profit Headline profit 2014 owners of the Company attributable to Profit Headline earnings adjustments: Headline profit and earnings per share and earnings per share Headline profit 2015 owners of the Company attributable to Profit Headline earnings adjustments: Reconciliation between profit attributable to owners of the Company and headline earnings: owners of the Company and attributable to profit between Reconciliation Reconciliation of diluted shares Reconciliation in issue Number of shares Weighted average number of shares average Weighted Add dilutive shares Add dilutive Diluted weighted average Diluted weighted (thebe) Earnings per share – – – – 7. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 128 Notes to the consolidated annual financial statements continued for the year ended 28 February
8. Interest in profits and losses of subsidiaries Interest in the aggregate amount of profits and losses of subsidiaries after taxation
2015 2014 P’000 P’000
Profits – continuing operations 135 460 102 649 Losses – continuing operations (31 338) (81 505) 9. Property, plant and equipment
2015 2014
Accumulated Net Accumulated Net Cost depreciation book value Cost depreciation book value P’000 P’000 P’000 P’000 P’000 P’000
Vehicles, furniture, fittings and equipment 253 158 142 141 111 017 228 639 136 761 91 878 Aircraft 169 062 36 017 133 045 156 791 26 890 129 901 Leasehold land and property 312 887 153 999 158 888 306 473 154 321 152 152 Work in progress 21 684 – 21 684 13 989 – 13 989 756 791 332 157 424 634 705 892 317 972 387 920
Included in property, plant and equipment are assets held under finance lease agreements with a book value of P82 million (2014: P82 million) which are encumbered as security for liabilities under finance lease agreements as stated in note 18.
A register of land and buildings is maintained at the Company’s registered office and may be inspected by members of the public or their duly authorised agents.
Vehicles, furniture, Leasehold fittings and land and Work in equipment Aircraft property progress Total P’000 P’000 P’000 P’000 P’000
Movement of property, plant and equipment – 2015 Net book value at beginning of the year 91 878 129 901 152 152 13 989 387 920 Subsidiaries acquired 369 – 2 060 11 2 440 Subsidiaries disposed (1 208) – – – (1 208) Additions 31 570 16 798 9 106 41 124 98 598 Transfers/reclassification 13 830 386 19 839 (34 055) – Translation differences 1 132 671 1 556 615 3 974 Disposals (1 897) (2 770) (471) – (5 138) Depreciation (24 653) (7 592) (20 184) – (52 429) Impairment (4) (4 349) (5 170) – (9 523) Net book value at end of the year 111 017 133 045 158 888 21 684 424 634
130 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 131 About Wilderness Sustainability report Corporate governance Annual financial statements 131 | – – – – 67 731 Total Total 2014 (423) (262) P’000 P’000 1 600 1 077 1 356 1 028 2 793 3 703 (7 771) (1 897) (7 206) 10 152 10 189 32 696 69 955 32 696 34 855 (49 007) 387 920 382 372 – – – – 68 (84) 731 2015 (494) (263) 1 077 P’000 1 356 512 2 512 1 045 3 831 P’000 3 831 3 703 19 731 152 10 (1 600) 189 10 34 664 13 989 10 952 (16 116) 696 32 34 664 Work in Work progress (411) P’000 (4 178) 12 176 (4 837) 13 282 (19 154) 152 152 155 274 property land and Leasehold – Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 366 (351) P’000 (6 854) (2 047) 12 357 Aircraft 129 901 126 430 (12) (393) P’000 2 468 (2 593) 91 878 25 691 89 716 (22 999) Vehicles, Vehicles, furniture, equipment fittings and continued Great Explorations (Proprietary) Limited Explorations (Proprietary) Great Limited t/a Chobezi (Proprietary) Fish Farms Kasane African Experience Limited Limited (Proprietary) Baobab Safari Lodges Limited (Proprietary) Linyanti Investments Micheletti Bates Safaris (Proprietary) Limited Micheletti Bates Safaris (Proprietary) Namib Lodge Company (Proprietary) Limited Company (Proprietary) Namib Lodge Limited Air Botswana (Proprietary) Wilderness Limited Cape Proprietary Touring Wilderness Northern Limited Air Maintenance (Proprietary) Limited Santawani Partnership (Proprietary) Exchange differences Exchange differences Disposal of subsidiaries Arising on acquisition of subsidiaries Impairment At beginning of the year At beginning of the year Net book value at end of the year of the year at end Net book value Impairment Depreciation Depreciation Disposals Per cash-generating unit: cash-generating Per Balance at the end of year Balance at the end of year An annual impairment test is performed to assess whether goodwill has been impaired. Goodwill has been allocated for An annual impairment test is performed to assess whether goodwill has been impaired. units (CGUs).impairment testing purposes to individual cash-generating That in use calculation. on a value unit has been determined based cash-generating of every amount The recoverable period five-year a covering by management based on financial budgets approved projections calculation uses cash flow CGU. relevant results to the the specific to 18%) that reflects 7.41% to 18% (2014: 7.41% of between and a discount rate dependent upon the location of the CGU, and the currency the risks associated with the cash flows vary The discount rates percent zero using have been extrapolated period five-year that beyond Cash flows generated. are in which the cash flows market in which they operate. for the rate growth the long-term average exceed does not rate This growth rate. growth possible change in the key assumptions on which the individual cash-generating that any reasonable Management believes amounts. their recoverable amount is based would not cause their carrying amounts to exceed recoverable units’ Translation differences differences Translation Transfers/reclassification Transfers/reclassification Additions Movement of property, plant and of property, Movement equipment – 2014 of the year at beginning Net book value Goodwill Property, plant and equipment Property, At carrying value At carrying value
10. 9. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 130 Notes to the consolidated annual financial statements continued for the year ended 28 February
11. Intangible assets
2015 2014 P’000 P’000
Intangibles at cost 25 744 25 553 Accumulated amortisation (11 061) (7 640) Net book value 14 683 17 913
At beginning of the year 17 913 8 863 Additions 585 10 954 Impairment (500) – Amortisation (3 467) (1 086) Exchange differences 152 (818) Balance at end of the year 14 683 17 913
12. Investment and loans in associates Proportion of ownership interest 28 February 28 February 2015 2014 2015 2014 Name of associate % % P’000 P’000
Cost of investment in associate Baobab Safari Lodge (Proprietary) Limited (Note 12.1) – 38 – 4 556 Central African Wilderness Safaris (Proprietary) Limited (Note 12.2)** – 50 – – French Mauve Properties (Proprietary) Limited** 33 33 – – Frogiface (Proprietary) Limited 50 50 708 708 Ngamiland Adventure Safaris (Proprietary) Limited*** 20 20 5 517 5 517 Norisco Holdings SA* 20 20 – – 6 225 10 781 Less: Impairment (708) (708) Attributable share of post-acquisition profits 4 081 5 484 At beginning of the year 5 484 2 935 Share of current year earnings 4 191 2 708 Reserves realised on disposal of associates (4 929) – Dividends received (665) (159)
Translation differences – (1 820)
Unsecured loans Baobab Safari Lodge (Proprietary) Limited – 245 Total investment in associates 9 598 13 982
* In the process of being liquidated. ** Amounts less than one thousand Pula. *** The associate carries on the business of safari lodge operator and the principal place of business is Maun, Botswana.
132 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 133 About Wilderness Sustainability report Corporate governance Annual financial statements 133 | 682 842 237 2014 2014 2 711 P’000 P’000 1 866 2 196 5 974 6 840 2 877 9 650 6 644 19 844 33 080 54 226 22 084 – – – – – – – 2015 2015 2 215 P’000 P’000 1 976 115 17 11 078 21 076 31 364 45 991 58 036 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness continued Loans receivable receivable Loans Investment loans in associates and On 1 July 2014 the Group acquired a further 15.82% interest for a consideration of approximately P1.5 million. The results of results The P1.5 million. a further of approximately acquired for a consideration On 1 July 2014 the Group 15.82% interest to note 31 for further consolidated. Refer information. now equity accounted and are previously the entity were During the year the interest in Central African Wilderness Safaris Limited was disposed at a loss of P5.1 million recognised in Safaris Limited was disposed at a loss of P5.1 million recognised Wilderness African in Central the interest During the year other gains and losses. fair value. in the associate to approximate interest of the Group’s consider the carrying value The directors Summary of the financial information of immaterial investees, not adjusted for the investees, Summary of the financial information of immaterial the Group: held by interest percentage assets Current liabilities Current assets Non-current liabilities Non-current Revenue after tax Profit net of tax investments, of earnings of equity-accounted Share months within twelve and not repayable free interest Unsecured, Share of earnings of equity-accounted investments, net of tax investments, of earnings of equity-accounted Share Summary of the financial information of Ngamiland Adventure Safaris Proprietary Limited, Proprietary Safaris information of Ngamiland Adventure Summary of the financial Group: the held by interest not adjusted for the percentage assets Current liabilities Current assets Non-current Revenue after tax Profit Non-current liabilities Non-current
12.2 13. 12.1 12.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 132 Notes to the consolidated annual financial statements continued for the year ended 28 February
14. Deferred tax assets/(liabilities)
2015 2014 P’000 P’000
Balance at beginning of the year (5 439) 6 679 Subsidiaries acquired 444 – Translation differences 357 (1 350) Amount recorded in the statement of comprehensive income (note 6) (2 236) (10 768) Balance at end of the year (6 874) (5 439)
Deferred tax assets 21 935 22 185 Deferred tax liabilities (28 809) (27 624) (6 874) (5 439)
Timing differences comprise: Estimated tax losses 22 012 23 849 Capital allowances (46 030) (46 081) Provisions 6 158 9 945 Income received in advance 7 548 8 501 Other temporary differences 3 438 (1 653) (6 874) (5 439)
Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: Deductible temporary differences 1 819 1 618 Tax losses 125 700 139 449 127 519 141 067
The deductible temporary differences do not expire under current legislation. The tax losses expire under the various jurisdictions as listed below: Botswana 5 years Namibia indefinitely South Africa indefinitely Zambia 5 years Zimbabwe 6 years
134 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 135 About Wilderness Sustainability report Corporate governance Annual financial statements 135 | date 2014 (429) 2017 2017 2015 2016 2017 2018 2018 2019 2019 2021 2016 2019 2019 2018 2020 2020 2020 P’000 2 146 7 888 10 102 19 707 Expiration 986 2015 (540) 135 1 135 1 210 P’000 4 610 4 578 3 925 6 023 4 655 5 339 2 360 9 440 4 609 P’000 31 164 15 500 047 10 71 944 15 878 30 721 22 461 220 12 90 897 23 480 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness continued Inventories Inventories Deferred tax assets/(liabilities)Deferred The expiration of tax losses is as follows: of tax losses is as follows: The expiration 2011 2012 2012 2013 2013 2014 2014 against which that taxable income will be available extent that it is probable to the been recognised tax assets have Deferred can be utilised. unused tax losses and credits differences, the deductible temporary only where recognised to tax losses these are tax assets relating deferred recognises the extent that the Group To to future realised in the foreseeable will be that taxable profits projections, management is satisfied, based on its current utilise the estimated tax losses 2015 originated Year 2011 2014 originated Year 2010 2012 2013 2014 2014 2015 2015 2015 Provision for obsolete inventory for obsolete inventory Provision Goods for resale Goods for resale Consumables Fuel 15. 14.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 134 Notes to the consolidated annual financial statements continued for the year ended 28 February
16. Trade receivables
2015 2014 P’000 P’000
Trade receivables – related parties (note 26) 1 627 1 400 – third parties 21 147 20 802 Receivables allowance (1 519) (1 007) 21 255 21 195
There were no significant long outstanding third party trade receivables which required specific impairment at year end. Third party trade receivables are limited to amounts receivable from reputable agents and touring wholesalers with whom the Group has established long-term relationships and no significant credit exposure is anticipated from these. The carrying value of receivables balances approximates the fair value.
Trade receivables are assessed and provided for based on estimated irrecoverable amounts, determined by reference to past default experience.
Before accepting any new customer, use is made of local external credit agencies, where necessary, to assess the potential customer’s credit quality and define credit limits by customer. Limits attributed to customers are reviewed regularly.
Analysis of the age of trade receivables past due but not impaired or provided for:
UK and Africa and USA Europe Asia Pacific Total P’000 P’000 P’000 P’000
2015 1 month past due 725 543 2 898 4 166 2 months past due 1 115 396 972 2 483 3 months past due 71 532 160 763 4 months and greater past due 188 273 1 650 2 111 2 099 1 744 5 680 9 523
2014 1 month past due 688 492 2 580 3 760 2 months past due 270 86 554 910 3 months past due 17 88 560 665 4 months and greater past due 991 453 1 802 3 246 1 966 1 119 5 496 8 581
136 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 137 About Wilderness Sustainability report Corporate governance Annual financial statements 137 | 217 217 152 482 793 394 2014 (880) Total P’000 P’000 (1 519) (1 275) (1 007) (1 007) (1 402) 153 703 231 000 191 152 175 281 482 2015 (831) (688) (962) (383) (895) (688) P’000 P’000 156 086 882 231 882 Africa and Asia Pacific – – 93 26 248 (118) (400) (288) (360) (399) (400) P’000 Europe UK and – – – 81 81 20 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 370 (152) (137) USA (225) (326) P’000 continued The Group does not hold any collateral as security. The maximum exposure to credit risk at the reporting to credit the carrying date is The maximum exposure as security. does not hold any collateral The Group fair value. approximates receivables of trade The carrying value above. receivable of each class of value Stated capital Stated Issued share capital Issued share Number of shares in issue (thousands) Number of shares Impairment losses previously recognised now reversed now recognised Impairment losses previously Net bad debt write-offs 2014 Opening balance on receivables Impairment losses recognised Impairment losses recognised on receivables Impairment losses recognised reversed now recognised Impairment losses previously Net bad debt write-offs Reconciliation of the bad debts allowance: Reconciliation 2015 Opening balance Disposal of subsidiary Trade receivables receivables Trade
17. 16. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 136 Notes to the consolidated annual financial statements continued for the year ended 28 February
18. Long-term liabilities
2015 2014 P’000 P’000
Unsecured and interest bearing 6 347 6 293 Loans from related parties (note 18.1) 2 343 2 116 Settlement liability (note 18.2) 4 004 4 177 Unsecured and interest free 10 996 10 090 Loans from related parties (note 18.3) 1 640 1 684 Loans from other entities – 408 Operating lease liability 9 209 7 798 Deferred income 147 200 Secured and interest bearing 70 138 105 327 Finance leases (note 18.4) 7 090 6 247 Loans from financial institutions (note 18.5) 63 048 99 080
87 481 121 710 Less: Current portion included in accounts payable (note 20) 27 423 25 613 60 058 96 097 Due within two years 43 042 44 369 Due within three years 2 326 38 419 Due within four years 1 644 1 834 Due within five years 737 1 314 Due after five years 12 309 10 161 60 058 96 097 Finance leases Minimum Lease payments 8 332 7 191 Less: Future finance charges 1 242 944 7 090 6 247
18.1 US Dollar denominated owing to a minority shareholder of a subsidiary, bears interest at 3% per annum and has no fixed terms of repayment.
18.2 Botswana Pula denominated liability, the nominal amount of P5 million bears interest at 8% per annum and is repayable in annual instalments of P500 000 with a final payment in December 2027.
18.3 South African Rand denominated loans owing to minority shareholders of a subsidiary, interest free and not repayable in the next 12 months.
18.4 Namibian Dollar denominated loans, secured by property, plant and equipment (note 9), bear interest between 8% and 8.75% per annum and are repayable by 2017.
138 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 139 About Wilderness Sustainability report Corporate governance Annual financial statements 139 | 974 500 2014 2014 2014 P’000 P’000 3 441 P’000 11 261 41 186 81 771 25 613 99 080 95 639 79 034 amount 176 132 Carrying 257 903 336 937 688 509 2015 2015 2015 P’000 P’000 2 103 P’000 613 41 613 599 599 12 27 423 76 234 323 323 82 60 945 048 63 amount 173 945 179 250 179 Carrying 502 332 2016 2017 Year of Year maturity % Integrated Annual Report 2015 Holdings Limited Integrated Wilderness 6-month Nominal interest rate rate interest USD LIbor + 2 ZAR-JIBAR + 2.4 SA Rand Currency US Dollar
continued – third parties– third – related parties– related (note 26) Development Bank of SA Limited (DBSA) Development Black Economic Empowerment consortium Black Economic Empowerment shareholders Institution Industrial Development Corporation of SA Corporation Industrial Development Limited (IDC) Financial liabilities Trade payables Trade
Royalties payable Royalties portionCurrent of long-term liabilities (note 18) Accrued expenses and other payables Non-financial liabilties Amounts received in advance in advance Amounts received within 12 months to services– Relating to be rendered The carrying value of financial liabilities approximates their fair value. Trade and other payables are generally settled in the generally and other payables are Trade value. their fair of financial liabilities approximates The carrying value will be settled within the next 12 months. and, unless specified, the amounts shown normal course of operations The loans are secured as follows: secured The loans are IDC (Proprietary) Safaris Wilderness Limited, Okavango (Proprietary) Air Botswana Wilderness by The loan has been guaranteed into a deed of entered The Botswana guarantors Safaris Limited. Wilderness Limited and Tours Wilderness Limited, and its shares pledged assets and each guarantor and immoveable moveable unencumbered hypothecation/mortgage over applicable. where cession of loan accounts in each of their subsidiaries, The loans are unsecured, interest free and are not repayable within 12 months. not repayable and are free interest unsecured, The loans are Trade and other payables Trade Loans from related parties related from Loans Long-term liabilities
20. 19. 18.5 18.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 138 Notes to the consolidated annual financial statements continued for the year ended 28 February
21. Bank overdrafts
2015 2014 P’000 P’000
Stanbic Bank of Botswana Limited (note 21.1) 49 274 41 891 Nedbank Limited Namibia (note 24) – 2 750 Other 9 30 49 283 44 671
The overdraft facility in Botswana is secured by: • Cession of book debts; and • Letter of suretyship by Wilderness Air Botswana (Proprietary) Limited supported by deed of hypothecation over Cessna aircraft being A2AIV, A2ANT, A2OWL and A2CUB.
21.1 The facilities available and security provided are as follows: • An overdraft facility amounting to P50 million; and • Spot foreign currency dealing facility amounting to USD10 million.
The interest payable on the overdraft facility will be charged at 1.5% per annum below the Bank’s prime lending rates prevailing from time to time. The overdraft is repayable on demand.
The facilities are secured by deed of hypothecation registered in the name of Sefofane Aviation Holdings (Proprietary) Limited and cession of an insurance policy over the assets financed and rentals. Interlinking suretyships between Sefofane Aviation Holdings (Proprietary) Limited, Wilderness Holdings Limited, Okavango Wilderness Safaris (Proprietary) Limited, and Wilderness Safaris Investment and Finance Proprietary Limited have been provided.
With respect to the spot foreign currency dealing facility pricing is quoted by the Bank in respect of each contract based on exchange rates/market conditions ruling at the time.
22. Capital commitments
2015 2014 P’000 P’000
Authorised by directors and contracted for 33 321 32 325 Authorised by directors but not yet contracted for 121 884 60 472 Total capital commitments 155 205 92 797
This expenditure will be incurred in the ensuing year and will be financed from existing cash resources and available borrowing facilities.
140 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 141 About Wilderness Sustainability report Corporate governance Annual financial statements 141 | 126 212 2014 P’000 23 641 23 767 63 724 63 936 108 977 108 977 196 680 – – 2015 P’000 23 618 23 618 342 59 342 59 92 420 92 420 380 175 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Namibia Commitments, and litigation contingent liabilities, guarantees Operating lease commitmentsOperating lease Cession of book debts Limited. and Finance Proprietary Safaris Investment Wilderness N$15.4 million out and out cession of loan funds by Limited supported N$5 million first and second continuing covering (Proprietary) by Kulala signed by Unlimited suretyship Limited. (Proprietary) of Kulala farm Eensaam No 157, Maltahohe district in respect mortgage bonds over Limited. and Finance Proprietary Safaris Investment Wilderness by provided N$5.7 million limited suretyship Limited. Shop (Proprietary) Travel Namib by provided N$1.5 million limited suretyship Limited supported N$3 million first and second continuing (Proprietary) by Taimibia by provided Unlimited suretyship No 139. Witwater farm mortgage bond over Limited. Company (Proprietary) in the name of Namib Lodge moveables notarial bond over general N$3 million third The Group has certain contingent liabilities resulting from litigation and claims, generally involving commercial and and commercial involving has certain litigation and claims, generally The Group from contingent liabilities resulting after taking legal conduct of its business. Management believes, incidental to the ordinary matters, which are employment contingencies, that none of these contingencies will materially outcome of these on the probable appropriate advice where of the Group. results of operations affect the financial position or the those noted in note 18 and note 21. are provided guarantees and Sureties Limited letters of comfort entities within the Group: and support following been issued to the have Limited Camp (Proprietary) Damaraland Limited (Proprietary) Hana-Ven Limited Safaris (Proprietary) Wilderness Namib Limited (Proprietary) Lodge Palmwag Limited (Proprietary) Safari Adventure Limited Air Namibia (Proprietary) Wilderness (Pvt) Limited Company Safaris Finance & Investment Wilderness Limited (Zambia) and its subsidiaries Tours Wilderness Operating leases relate mainly to concession leases with average remaining lease terms of nine years. remaining with average mainly to concession leases leases relate Operating Due within one year: Due within one year: Property vehicles motor equipment and Office furniture, within one year lease commitments due operating Total Due between two and five years: two and five Due between Property Office furniture, equipment and motor vehicles equipment and motor Office furniture, years two and five between lease commitments due operating Total Due after five years: Due after five Property years after five lease commitments due operating Total lease commitments Total non-cancellable operating
24. 23. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 140 Notes to the consolidated annual financial statements continued for the year ended 28 February
24. Commitments, contingent liabilities, guarantees and litigation continued South Africa A pledge of R700 000 issued by Wilderness Manzengwena Camp Proprietary Limited in favour of Standard Bank of South Africa Limited.
The Group issued guarantees to various entities amounting to P3.8 million.
25. Financial risk management The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value and cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
Risk management is carried out by the Risk Committee under policies approved by the Board of Directors. The Group identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk and interest rate risk.
Financial instruments Financial instruments carried on the statement of financial position include cash and bank balances, investments, loans, receivables, trade creditors and borrowings. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.
Credit risk The financial assets of the Group which are subject to credit risk consist mainly of cash resources, loans and debtors. The cash resources are placed with reputable financial institutions.
The Group continuously monitors defaults of customers and other counterparties, identified either individually or by group, and incorporates this information into its credit risk controls. The Group’s policy is to deal only with creditworthy counterparties. The majority of the Group’s receivables are comprised of related parties.
The Group’s management considers that all the above financial assets that are not impaired for each of the reporting dates under review are of good credit quality, including those that are past due. None of the Group’s financial assets are secured by collateral or other credit enhancements. Credit quality of counterparties is determined based on independent external credit ratings where these are available. Where no independent external credit ratings are available, management makes an internal assessment of credit quality based on factors such as analyses of the counterparties’ operations, major assets held, as well as past history of the Group’s business transactions with the counterparties.
In respect of trade and other receivables, the Group is not exposed to any significant credit risk or concentration of credit risk exposure. The credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
Market risk Foreign currency exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US Dollar. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.
The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.
Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.
The following table illustrates the sensitivity of the net result for the year and equity in regard to the Group’s financial assets and liabilities against the US Dollar exchange rate.
It assumes a 5% strengthening of the US Dollar against the local currencies for the year ended at 28 February 2015 (2014: 5%). The sensitivity analysis is based on the Group’s foreign currency financial instruments held at each balance sheet date.
142 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 143 About Wilderness Sustainability report Corporate governance Annual financial statements 143 | 2014 (443) (USD) P’000 (USD) 3 882 Foreign Foreign Foreign currency currency 250 000 currency 2 300 000 Gain/(loss) rate rate rate 2015 (476) 5 516 P’000 USD call contract USD call contract 9.2500 Average 12.2900 12.2900 Average Average exchange exchange exchange Gain/(loss) (USD) Foreign Foreign currency currency 1 150 000 rate rate Integrated Annual Report 2015 Holdings Limited Integrated Wilderness USD put contract 11.5500 Average Average exchange exchange continued continued continued At the reporting date, the fair value of the Group’s foreign exchange contracts is estimated to be a liability of P0.11 million contracts exchange foreign of the Group’s At the reporting date, the fair value at the reporting instruments date. of equivalent based on market values These amounts are (2014: asset of P0.17 million). unit an operating by sales or purchases arises from Such exposure exposures. currency also has transactional The Group denominated in sales are 70% of the Company’s Approximately functional currency. other than the unit’s in currencies unit making the sale. of the operating other than the functional currency currencies Buy Rands than 3 months Less Cash flow and fair value interest rate risk value interest and fair Cash flow Forward foreign exchange contracts exchange foreign Forward Financial risk management Financial risk management risk Market risk exchange currency Foreign Buy Pula than 3 months Less 2015: open at 28 February which were option contracts also took out the following The Group The Group’s income and operating cash flows are substantially independent of changes in market interest rates. in market interest substantially independent of changes are cash flows income and operating The Group’s to cash expose the Group rates issued at variable Borrowings long-term borrowings. risk arises from rate interest The Group’s rate risk. value interest Group to fair rates expose the issued at fixed rate risk. Borrowings interest flow of short-term and financing activities, giving rise to impact on the value cash investment rate Fluctuations in interest while maximum returns in a manner to achieve invested are surplus funds The cash is managed to ensure risk. rate interest in in an increase resulted would have bearing borrowings on net interest rates in interest minimising risks. A 0.5% variation finance costs of P0.4 million (2014: P1.0 million). As a result of significant sales in foreign currency, the Group’s statement of financial position can be affected significantly the Group’s currency, of significant sales in foreign As a result the use through exposure currency seeks to mitigate the effect of its structural The Group rates. in exchange movements by used to establish are These contracts receipts. currency foreign used to sell future which are contracts exchange of foreign receipts. and Rand certainty Pula future around 2015: at 28 February contracts exchange of all open forward details table provides The following If the US Dollar strengthened by 5% (2014: 5%), then this would have the following impact: the following 5%), then this would have 5% (2014: by If the US Dollar strengthened Equity Net effect on after tax profits Net effect on after tax profits of the US a 5% weakening An equal and opposite impact would occur in Dollar.
25.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 142 Notes to the consolidated annual financial statements continued for the year ended 28 February
25. Financial risk management continued Market risk continued Price risk The Group does not have any exposure to securities price risk.
Liquidity risk analysis Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding by keeping committed credit lines available.
The Group manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term financial liabilities, cash outflows due in day-to-day business and by ensuring that adequate unutilised borrowing facilities are maintained.
As at 28 February 2015, the Group’s liabilities have contractual maturities which are summarised in notes 18, 20 and 23.
Long-term borrowings are due as follows:
2015 2014 P’000 P’000
1 – 2 years 43 042 44 369 3 – 5 years 4 707 41 567 After 5 years 12 309 10 161 Total 60 058 96 097
Financial assets and liabilities are categorised according to the valuation methods set out below. (1) Valued using unadjusted quoted prices in active markets for identical financial instruments. This category includes listed equity shares and certain exchange-traded derivatives and trade payables and receivables. (2) Valued using techniques based significantly on observable market data. Instruments in this category are valued using: a. quoted prices for similar instruments or identical instruments in markets which are not considered active; or b. valuation techniques where all the inputs that have a significant effect on the valuation are directly or indirectly based on observable market data. (3) The type of instruments that trade in markets that are not considered to be active but are based on quoted market prices, broker dealer quotations or alternative pricing sources with reasonable levels of price transparency and those instruments valued using techniques include most physical commodities, certain money market securities and loan commitments and most over-the-counter derivatives. Instruments in this category have been valued using a valuation technique where at least one input (which could have a significant effect on the instrument’s valuation) is not based on observable market data. Where inputs can be observed from market data without undue cost and effort the observed input is used. Otherwise the Company determines a reasonable level for the input.
144 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 145 About Wilderness Sustainability report Corporate governance Annual financial statements 145 | P’000 P’000 21 195 17 144 21 255 125 78 125 53 421 44 671 24 553 54 900 49 283 113 712 211 804 308 182 295 390 333 729 008 329 283 200 Fair value Fair Fair value Fair cost P’000 P’000 21 195 17 144 21 255 125 78 125 53 421 44 671 24 553 54 900 49 283 113 712 211 804 308 182 295 390 333 729 008 329 283 200 Liabilities Loans and Loans receivables at amortised Integrated Annual Report 2015 Holdings Limited Integrated Wilderness continued continued continued 2015 Financial assets receivables Trade Included in other receivables Included in other receivables Cash and cash equivalents Cash and cash equivalents 2014 Financial assets receivables Trade Included in other receivables Cash and cash equivalents Capital management Financial risk management Financial risk management risk Market Liquidity risk analysis Trade and other payables (excluding current portion current and other payables (excluding of long-term liabilities) Trade Bank overdraft 2015 Financial liabilities bearing borrowings Included in interest Bank overdraft 2014 Financial liabilities bearing borrowings Included in interest Trade and other payables (excluding current portion current and other payables (excluding of long-term liabilities) Trade All financial assets and liabilities are valued according to valuation method 1 with the exception of foreign exchange exchange of foreign valuation method 1 with the exception to valued according liabilities are All financial assets and to method 2. according is valued which (2014: an asset of P0.17 milliion) was recognised a liability of P0.11 million contracts, The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while will be able to continue as a going concern in the Group that entities manages its capital to ensure The Group the optimisation of the debt and equity balance. to stakeholders through maximising the return and disclosed in note 18, cash and cash equivalents consists of debt, which includes the borrowings The capital structure earnings as disclosed in and retained capital, reserves comprising share equity attributable to equity holders of the parent, prior year. the unchanged from policy remains The Group’s the statement of changes in equity. the entity to be adequately funded. of debt and equity and considers Management continually monitors the level
25. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 144 Notes to the consolidated annual financial statements continued for the year ended 28 February
26. Related party transactions Sales and purchases between Group companies are concluded at arm’s length in the ordinary course of business. For the year ended 28 February 2015, the intergroup sales of goods and provision of services amounted to P728 million (2014: P640 million).
2015 2014 P’000 P’000
Included in sales: Associates 3 071 2 399 Other 16 929 19 772 Key management personnel 167 1 973 20 167 24 144
Included in cost of sales and other expenses: Associates 14 266 15 440 Other 20 125 19 863 Key management personnel 99 (163) 34 490 35 140
Included in trade receivables: Associates 386 322 Other 1 223 1 053 Key management personnel 18 25 1 627 1 400
Included in trade payables: Associates 171 787 Other 225 187 Key management personnel 292 – 688 974
Included in other receivables: Associates 9 – Other 1 952 442 Key management personnel – – 1 961 442
Included in other payables: Associates – 110 Other 2 878 2 837 2 878 2 947
Remuneration to key management personnel is reflected in note 4.
146 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 147 About Wilderness Sustainability report Corporate governance Annual financial statements 147 – | 2014 (46 034) 5 773 977 2 940 689 2 879 322 – 2015 (420 174) 5 773 977 4 203 801 (1 150 002) Integrated Annual Report 2015 Holdings Limited Integrated Wilderness At all times reserve and keep available, free from pre-emptive rights, out of its authorised but unissued share capital, of its authorised but unissued share rights, out pre-emptive from free and keep available, At all times reserve to participants; to fulfil its obligations to settle shares to enable the Company required as may be such number of shares of the plan once a participant for purposes may only be issued or purchased of participants) that shares (or group Ensure or allocated has been formally identified; to whom they will be awarded meetings taken into general general/annual at their votes held for purposes of the plan will not have that shares Ensure in terms of the BSE proposed Listings Requirements; account for the purposes of resolutions participants all by which may be acquired of the plan, shall not exceed during the term number of shares The aggregate of the capital being 7% of the issued share thousand) shares, and seventy 16 170 000 (sixteen million one hundred meeting; and at a general of shareholders approval in these amounts will require Company and any increases one participant any by of the plan, shall not which may be acquired during the duration number of shares The aggregate capital of the being 0.5% of the issued share thousand) shares, and fifty-five 1 155 000 (one million one hundred exceed meeting. at a general of shareholders approval in these amounts will require Company and any increases Forfeiture of allocations previously made allocations previously of Forfeiture New awards to employees during the current period during the current to employees New awards during the year exercised Awards Performance Share Plan Share Performance Share-based payments The fair value of the performance share awards has been established using the standard option pricing methodology, option pricing methodology, has been established using the standard awards of the performance share The fair value made in were no awards in the prior year; award applying the Black-Scholes formula and was determined at P2.30 per share year. the current – period end at allocated to eligible employees awards share Performance – – Summary of Plan activities for the period (number of shares) in prior periods allocated to eligible employees awards share Performance This is an equity-settled incentive in terms of which eligible employees to whom awards have been made would become have awards to whom in terms of which eligible employees This is an equity-settled incentive subjected to certainThe plan is based conditions, which are performance in the Company. shares to entitled, upon vesting, of awards, vesting in a geared will result outperformance against the targets primarily on sustainable earnings performance; lapsing. in the awards whilst underperformance will result necessitate. alter the performance conditions as circumstances time to time may from at their sole discretion The directors is no consideration There the date of grant. from years three allocated in terms of this plan shall vest The performance shares payable for an award. The awards and allocations of shares and share appreciation rights are granted to executives and key staff members. In to executives granted rights are appreciation and share and allocations of shares The awards within the Group depend upon continued employment the incentives principles governance keeping with good corporate of conditions align the interests These long-term performance performance conditions. of specified and the achievement on a sustainable basis. value shareholder increasing thereby of the Group with those of key employees shareholders in terms of IFRS payments accounted for as equity-settled share-based are The incentives of the equity-settled 2. In terms obligations in to settle the Group’s required to the shares observed with respect rules are general the following incentives The Company shall: terms of the scheme. • • • • • but include all other persons associated with directors non-executive plans exclude under the incentive Eligible employees of the directors. the Company at the sole discretion
27. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 146 Notes to the consolidated annual financial statements continued for the year ended 28 February
27. Share-based payments continued Share Appreciation Rights Plan (SAR) This is an equity-settled incentive plan, in terms of which directors have the discretion to settle the obligation by issuing either shares or cash.
At present the directors have elected to settle any benefits that may arise by issuing shares. Should this change in future periods the plan may become treated as cash settled.
In order for a SAR to vest the plan requires sustained earnings growth. If the targets are not met the vesting of the SARs will roll over until this performance criterion is achieved, but is limited to a maximum of six years from date of allocation at which time it will lapse.
The fair value of the share appreciation awards granted in the prior year was determined as P0.68; no awards were made in the current year.
The directors at their sole discretion may from time to time alter the performance conditions as circumstances necessitate.
The share appreciation rights allocated in terms of this plan shall vest in the following manner: • One third of the allocation on the third anniversary of the allocation date; • A second third of the allocation on the fourth anniversary of the allocation date; and • The final third of the allocation on the fifth anniversary of the allocation date.
2015 2014
Summary of Plan activities for the period (number of shares) Share appreciation rights allocated to eligible employees in prior periods 9 910 860 5 466 134 – New awards to employees during the current period – 5 055 943 – Forfeiture of allocations previously made (1 069 593) (611 217) Share appreciation rights allocated to eligible employees at period end 8 841 267 9 910 860
The fair value of the share appreciation rights was determined using the same methodology and assumptions as the Performance Share Plan.
2015 2014 P’000 P’000
Share-based payment expense recognised in profit or loss for the period (P’000) Staff costs 8 313 6 151 Tax effect (1 909) (1 277) 6 404 4 874
The total maximum number of shares authorised to be issued in terms of the Plan 16 170 000 16 170 000
The accumulated total number of shares already issued to eligible employees in terms of the Plan 1 150 002 –
Share-based payment expense recognised in profit or loss for the period 6 404 4 874
Accumulated amount recognised as a share-based payment reserve in equity at the end of the period 15 435 10 802
148 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 149 About Wilderness Sustainability report Corporate governance Annual financial statements 149 | 37 2014 1 315 P’000 1 279 3 032 4 592 2 708 (9 851) (7 292) (4 280) (8 788) (8 902) 77 521 17 200 98 459 26 533 48 490 (29 031) (10 849) (50 093) (27 672) 132 653 (4) 2015 4 191 P’000 2 501 8 103 7 056 746 8 746 (7 108) (6 519) (9 787) (6 650) 853 17 232 76 232 175) (10 29 843 104 104 110 660) (10 463) (32 (28 799) (55 896) 166 542 695 695 108 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Segmental report A reportable segment is a segment that is used by the Group Executive Committee (chief operating decision maker) to make (chief operating Committee Executive A reportable the Group used by segment is a segment that is and assess performance. decisions, allocate resources key operating size. their relative by and grouped regions differentiated The reportable geographically segments are in note 3. Revenue under is reflected Segmental revenue Committee and include items directly Executive the Group by regularly reported are reviewed and results Operating external transactions basis, whether from can be attributed on a reasonable as those that as well attributable to a segment segments. with other Group transactions or from to the relate function expenses which do not directly treasury or centralised Unallocated items mainly comprise corporate basis. on a reasonable of the segments or which cannot be re-allocated activities operating attributable to the segment or directly assets and liabilities that are operating Segment assets and liabilities comprise those basis. can be allocated to the segment on a reasonable attributable to the segment and is defined as performance directly as operating or loss is measured Segment profit EBITDA gains or losses. exchange gains and losses and foreign other before Segmental profit Segmental Botswana Namibia South Africa Zambezi Group and amortisationDepreciation Botswana Intergroup Namibia South Africa Zambezi Profit before taxation before Profit Taxation after tax Profit Unrealised forex loss – loans forex Unrealised Associate earnings Interest received Interest Impairment losses paid Interest Transactions unallocated to a segment Transactions Other gains and losses gains exchange Foreign 28. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 148 Notes to the consolidated annual financial statements continued for the year ended 28 February
28. Segmental report continued
2015 2014 P’000 P’000
Capital expenditure Botswana 52 103 30 989 Namibia 18 160 21 812 South Africa 3 995 14 955 Zambezi 24 925 13 153 Group 99 183 80 909
Segmental assets Botswana 443 408 425 292 Namibia 149 230 130 061 South Africa 252 212 239 639 Zambezi 108 564 100 214 Central financing activities and eliminations (36 993) (12 743) Group 916 421 882 463
Segmental liabilities Botswana 229 947 239 686 Namibia 38 214 35 316 South Africa 230 372 239 610 Zambezi 35 516 37 415 Central financing activities and eliminations (61 659) (44 512) Group 472 390 507 515
No single customer contributes 10% or more to revenue in the current year or prior year.
150 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 151 About Wilderness Sustainability report Corporate governance Annual financial statements 151 – – | – 800 2014 2014 6 151 P’000 P’000 9 851 8 902 8 788 4 900 (1 818) (1 279) 11 099 (3 759) (2 708) 15 986 62 351 77 521 50 093 (10 861) 211 143 (12 844) (19 208) (18 263) (12 975) 134 624 – (20) (20) 665 2015 2015 (187) P’000 P’000 108 7 108 313 8 313 6 519 4 998 (4 191) (1 057) (2 501) 175 175 10 (3 557) (9 461) (3 570) (4 926) 844 12 55 896 (21 684) (30 227) 190 198 (20 090) 157 090 695 695 108 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Share-based payment expense Share-based in inventories Increase in accounts receivable (Increase)/decrease in accounts payable (Decrease)/increase Unrealised foreign exchange losses on loans exchange foreign Unrealised Profit on disposal of property, plant and equipment on disposal of property, Profit on disposal of associate Loss/(profit) received Interest on disposal of subsidiaries Profit Depreciation and amortisationDepreciation Impairment loss Financing costs Unrealised foreign exchange gains exchange foreign Unrealised earnings of equity-accounted investment Share Increase in provisions Increase Net amount receivable at end of the year Net amount receivable Other movements and translation differences and translation Other movements Amounts charged to profit or loss excluding deferred tax deferred or loss excluding to profit Amounts charged Disposal of subsidiary Operating profit before working capital changes working capital before profit Operating capital changes: Working Net amounts receivable at beginning of the year Net amounts receivable Acquisition of subsidiary Taxation paid Taxation Cash generated from operations from Cash generated Adjustments for: Profit before taxation before Profit 30. 29. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 150 Notes to the consolidated annual financial statements continued for the year ended 28 February
31. Acquisition of subsidiary companies Cost of investment in acquired subsidiary companies On 1 July 2014, Okavango Wilderness Safaris (Proprietary) Limited acquired an additional interest of 15.82% in Baobab Safari Lodges (Proprietary) Limited.
2015 2014 P’000 P’000
The fair value of assets acquired and the liabilities assumed on the acquisition of the subsidiary company, net of cash acquired, is as follows: Property, plant and equipment 2 440 – Deferred taxation 444 – Inventories 227 – Accounts receivable 1 210 – Trade and other payables (1 048) – Current tax liability (20) – Loan (258) – Bank balances and cash 1 194 – 4 189 – Goodwill arising on acquisition 3 831 – Fair value of previously held interest (4 577) – Non-controlling interest (1 936) – Purchase price 1 507 – Cash on acquisition (1 194) – Cash paid 313 –
32. Disposal of subsidiary companies Namibia Tracks and Trails (Proprietary) Limited and Kasane Fish Farms (Proprietary) Limited were disposed during the financial year.
2015 2014 P’000 P’000
The fair value of assets disposed and the liabilities relinquished on the disposal of the subsidiary companies, net of cash disposed, is as follows: Property, plant and equipment 1 208 – Inventories 12 – Accounts receivable 1 971 – Current tax asset 20 – Trade and other payables (3 867) – Long-term liabilities (342) – Bank 1 523 – Loan (269) – 256 – Goodwill 1 600 – Profit on sale of shares 1 057 – Non-controlling interests (422) – Non-distributable reserves 527 – Proceeds from sale 3 018 – Bank (1 523) – Net cash proceeds 1 495 –
152 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 153 About Wilderness Sustainability report Corporate governance Annual financial statements 153 – – | 2014 2014 P’000 6 154 P’000 6 023 8 245 19 728 17 447 12 358 69 955 (44 671) 250 719 295 390 792 2015 2015 7 871 P’000 8 314 P’000 8 927 636 2 636 15 604 25 520 28 934 598 98 598 917 233 917 (49 283) 283 200 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Leasehold land and property Leasehold Aircraft in progress Work and equipment fittings furniture, Vehicles, Aircraft Vehicles, furniture, fittings and equipment furniture, Vehicles, and property land Leasehold Work in progress Work Subsequent events Cash and cash equivalents at end of the year Additions to property, plant and equipment property, Additions to Expansion of operations: Maintenance of operations: Cash resources Bank overdrafts A dividend of 15 thebe (2014: 10 thebe) per share has been declared and is payable on or about 25 June 2015 to those has been declared A dividend of 15 thebe (2014: 10 thebe) per share to shareholders The dividend shall be paid in Rand June 2015. 12 business on Friday, at the close of registered shareholders on or about 21 May 2015. rate exchange to Rand calculated at the Pula on the South African register, Wilderness for Odzala and marketing contract announced the termination of its operating 2015, the Group In February all parties between from mutual agreement by and is effective The decision was reached of Congo. Camps in the Republic the reporting took place between date and the date of this report.26 April 2015. No other material events 35. 34. 33. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 152 Company statement of comprehensive income for the year ended 28 February
Restated 2015 2014 Notes P’000 P’000
Revenue 2 19 694 167 065 Operating costs (15 537) (15 372) Foreign exchange gains 937 2 191 Operating profit before items listed below 3 5 094 153 884 Depreciation and amortisation 6, 7 (984) (582) Interest received 1 937 5 361 Impairment loss on loans (1 035) (26 353) Impairment loss on investment in subsidiaries 8 – (8 549) Financing costs 4 (7 200) (6 785) Unrealised foreign exchange loss on loans (2 975) (18 377) (Loss)/profit before taxation (5 163) 98 599 Taxation 5 (666) (759) Total comprehensive (loss)/income for the year (5 829) 97 840
154 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 155 About Wilderness Sustainability report Corporate governance Annual financial statements 155 | 323 2014 P’000 2 773 3 962 41 891 76 671 80 633 34 773 75 939 75 939 75 960 34 069 188 476 153 703 259 742 256 646 340 375 340 375 2015 P’000 8 158 2 343 5 844 16 287 274 49 274 39 780 96 545 39 780 80 258 708 708 112 161 930 147 267 982 161 982 156 086 256 646 692 363 692 363 6 7 8 9 11 16 10 12 16 Notes Integrated Annual Report 2015 Holdings Limited Integrated Wilderness ASSETS assets Non-current plant and equipment Property, Intangible assets Investment in subsidiaries Investment Current assets Current and other receivables Trade Cash and cash equivalents EQUITY AND LIABILITIES of the Company Equity attributable to owners Total assets Total capital Stated Accumulated profit Non-current liabilities Non-current Long-term liabilities Long-term Current liabilities Current and other payables Trade Bank overdrafts Total equity and liabilities Total Company statement of financial position financial of statement Company as at 28 February Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 154 Company statement of changes in equity for the year ended 28 February
Accumulated Stated profit/ Total capital (loss) equity P’000 P’000 P’000
Balance at 1 March 2013 153 703 (53 827) 99 876 Dividends paid – (9 240) (9 240) Total comprehensive profit for the year – 97 840 97 840
Balance at 28 February 2014 153 703 34 773 188 476 Issue of share capital 2 383 – 2 383 Dividends paid – (23 100) (23 100) Total comprehensive loss for the year – (5 829) (5 829) Balance at 28 February 2015 156 086 5 844 161 930
156 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 157 About Wilderness Sustainability report Corporate governance Annual financial statements 157 | 430 (201) 2014 (759) (476) (677) P’000 5 361 8 367 10 120 (6 785) (9 240) (10 881) (37 929) (27 048) (34 738) (25 498) 2015 (440) (666) 937 1 937 P’000 4 942 (7 200) (7 949) 635 15 635 (8 389) 69 381 79 087 (23 100) (65 756) 929) (37 987) (32 (42 656) 7 6 16 14 15 Notes Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Cash and cash equivalents at end of the year Cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents Cash flow from operating activities operating from Cash flow operations by Cash generated Dividends received received Interest Financing costs paid Taxation activities investing from Cash flow Acquisition of intangible assets activities investing from Net cash outflow in cash and cash equivalents Net increase/(decrease) Net cash inflow from operating activities operating from Net cash inflow plant and equipment Acquisition of property, financing activities from Cash flow of long-term liabilities Net repayment Dividends paid financing activities from Net cash outflow Company statement of cash flows of statement Company 28 February ended for the year Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 156 Notes to the Company annual financial statements for the year ended 28 February
1. Summary of accounting policies Refer to the summary of significant accounting policies as set out on pages 115 to 125.
2. Revenue
2015 2014 P’000 P’000
Revenue comprises Dividends received from subsidiaries 15 635 154 620 Cost recharges 4 059 12 445 19 694 167 065
3. Operating profit
2015 2014 P’000 P’000
Operating profit is arrived at after taking into account the following items: Auditors' remuneration Current year fees 204 194 Prior year under provision 14 9 Other expenses – 7 218 210
Foreign exchange gains Realised 267 2 191 Unrealised 670 – Legal and professional fees 1 978 532 Staff costs 10 110 10 846 Directors' emoluments Executive directors 1 824 1 321
4. Financing costs
2015 2014 P’000 P’000
Bank overdraft 3 320 3 989 Trade finance and loans 3 880 2 796 7 200 6 785
158 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 159 About Wilderness Sustainability report Corporate governance Annual financial statements 159 – | % 194 201 0.1 323 (72) 0.8 0.8 Net 323 323 12.4 323 323 759 759 (114) Total Total 2014 22.0 (34.5) P’000 P’000 8 158 P’000 7 949 book value – – – – – – – % 131 131 4.2 666 666 84.4 12.9 12.9 12.9 12.9 2015 P’000 P’000 (22.0) P’000 870 7 870 870 7 870 (66.6) Aircraft 2014 depreciation Accumulated – 454 454 79 Cost 194 201 323 (72) P’000 323 323 288 (114) P’000 Furniture, equipment fittings and Net 288 P’000 8 158 870 7 870 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness book value – 245 245 P’000 2015 depreciation Accumulated 533 Cost P’000 870 7 870 8 403 Property, plant and equipment plant and Property, Taxation Taxation charge Taxation taxation before profit to Reconciliation of taxation rate Movement of property,plant and equipment – 2015 of property,plant Movement at beginning of the year Net book value Net book value at end of the year at end of the year Net book value fittings and equipment – 2014 of furniture, Movement at beginning of the year Net book value Additions Depreciation Additions Depreciation Net book value at end of the year Net book value Company normal tax rate Exempt income Exempt in determining taxable profit not deductible Effect of expenses that are Effect of unused tax losses and tax offsets not recognised as deferred tax assets as deferred recognised Effect of unused tax losses and tax offsets not tax on dividends received Withholding Effective taxation rate Effective set-off against for tax losses of P28.2 million (2014: P27.2 million) available The Company has estimated total accumulated profit. taxable future Withholding tax on dividends received tax on dividends Withholding Total taxation charge Total Aircraft Furniture, fittings and equipment fittings and Furniture, Total
6. 5.1 5.2 5. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 158 Notes to the Company annual financial statements continued for the year ended 28 February
7. Intangible assets
2015 2014 P’000 P’000
Intangibles at cost 3 935 3 495 Accumulated amortisation (1 592) (722) Net book value at end of the year 2 343 2 773
Net book value at beginning of the year 2 773 2 807 Additions 440 476 Amortisation (870) (510) Balance at end of the year 2 343 2 773
8. Investment in subsidiaries
2015 2014 P’000 P’000
Shares at cost less impairments Represented by: Okavango Wilderness Safaris (Proprietary) Limited (Botswana) 59 450 59 450 Sefofane Aviation Holdings (Proprietary) Limited (Botswana) 28 505 28 505 Wilderness Tours Limited (Zambia) 68 548 68 548 Wilderness Safaris Finance & Investments Company (Private) Limited (Zimbabwe) 82 82 Wilderness Safaris Investment & Finance Proprietary Limited (South Africa) 104 361 104 361 Northern Air Maintenance (Proprietary) Limited (Botswana) 1 801 1 801 Wilderness Safaris Limited (Bermuda)* – – Wilderness Air Zambia (Proprietary) Limited (Zambia) 8 8 Wilderness Air Botswana (Proprietary) Limited (Botswana) 2 522 2 522 Goodison Two Hundred Fifteen Limited* – – 265 277 265 277 Less: Impairments: Wilderness Safaris Finance & Investments Company (Private) Limited (Zimbabwe) (82) (82) Wilderness Tours Limited (Zambia) (8 549) (8 549) 256 646 256 646
A list of the Company’s subsidiaries is detailed in Annexure 1 of the Group accounts.
* Amounts less than one thousand Pula. 9. Trade and other receivables
2015 2014 P’000 P’000
Other receivables and prepayments 80 258 76 671 80 258 76 671
Refer to note 13 for details of related party balances included in total above.
There were no significant long outstanding third party trade receivables which require specific impairment at year end. The carrying values of receivables approximates their fair value.
160 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 161 About Wilderness Sustainability report Corporate governance Annual financial statements 161 | – 2014 2014 2014 P’000 P’000 P’000 14 369 19 700 34 069 95 639 75 939 39 400 36 539 75 939 (19 700) 153 703 – – 2015 2015 2015 P’000 P’000 P’000 21 165 91 543 39 780 39 780 39 780 60 945 (21 165) 708 708 112 156 086 Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Stated capital Stated Long-term liabilities Trade and other payables Trade Industrial Development Corporation of South Africa Limited Corporation Industrial Development portion Current included in accounts payable (note 12) Less: portionLong-term Repayable within 2 years Repayable Repayable within 3 years Repayable Repayable within 4 years Repayable Details of the terms and conditions of the IDC loan are reflected in note 18 of the Group accounts. Details of the terms and conditions of the IDC in note 18 of the Group reflected loan are Issued and fully paid of no par value shares 000 000) ordinary 231 882 000 (2014: 231 accounts. of the Group stated capital is detailed in note 17 The Company’s Accrued expenses and other payables portionCurrent of long-term liabilities (note 11) party 13 for details of related to note Refer balances included in total above. their fair value. of liabilities approximates The carrying values
11. 10. 12.
Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 160 Notes to the Company annual financial statements continued for the year ended 28 February
13. Related party transactions
2015 2014 P’000 P’000
Included in other receivables (net of impairments) Wilderness Tours Limited 15 986 15 905 Wilderness Air Botswana (Proprietary) Limited – 1 548 Okavango Wilderness Safaris (Proprietary) Limited – 20 333 Northern Air Maintenance (Proprietary) Limited 3 421 3 721 Sefofane Aviation Holdings (Proprietary) Limited – 273 Wilderness Safaris Zimbabwe (Private) Limited 45 140 30 016 Wilderness Camps of Zimbabwe (Private) Limited 1 260 – Namib Wilderness Safaris (Proprietary) Limited 262 – Namib Lodge Company (Proprietary) Limited 3 858 3 527 Wilderness Safaris Proprietary Limited 4 917 50 74 844 75 373
Included in other payables Wilderness Safaris Limited (13.1) 21 451 8 867 Okavango Wilderness Safaris (Proprietary) Limited (13.2) 54 214 – Wilderness Tours Limited (13.1) 90 91 Sefofane Aviation Holdings (Proprietary) Limited (13.2) 12 572 – 88 327 8 958
13.1 The loans are unsecured, interest free with no fixed terms of repayment. 13.2 The loans are unsecured with no fixed terms of repayment. 13.3 The entities listed above are all subsidiaries of Wilderness Holdings Limited. 13.4 Remuneration to key management personnel is reflected in note 4 of the Group accounts.
14. Cash generated by operations
2015 2014 P’000 P’000
(Loss)/profit before taxation: (5 163) 98 599 Adjustments for: Depreciation and amortisation 984 582 Impairment loss on loans 1 035 26 353 Impairment loss on investment in subsidiaries – 8 549 Dividends received (15 635) (154 620) Interest received (1 937) (5 361) Financing costs 7 200 6 785 Unrealised net foreign exchange loss 2 975 18 377 Operating loss before working capital changes (10 541) (736) Working capital changes: Increase in accounts receivable (3 587) (2 698) Increase in accounts payable 83 509 3 864 69 381 430
162 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 163 About Wilderness Sustainability report Corporate governance Annual financial statements 163 | – 759 759 322 2014 2014 (322) P’000 P’000 P’000 3 962 3 962 741 92 741 76 671 16 287 76 454 80 633 (41 891) (37 929) Fair value Fair – – – 666 666 2015 2015 P’000 P’000 P’000 3 962 741 92 741 76 671 16 287 16 287 76 454 80 633 (49 274) 987) (32 Loans and Loans receivables Integrated Annual Report 2015 Holdings Limited Integrated Wilderness Cash and cash equivalents Cash and cash equivalents 2014 Financial assets Included in other receivables Cash and cash equivalents Cash and cash equivalents 2015 Financial assets Included in other receivables Financial risk management Cash and cash equivalents at end of the year Taxation paid Taxation Bank overdrafts Cash resources The overdraft facility is secured by limited suretyship of P50 000 000 by Wilderness Holdings Limited in favour of Sefofane of Sefofane Holdings Limited in favour Wilderness of P50 000 000 by limited suretyship by facility is secured The overdraft Safaris Wilderness Limited and Safaris (Proprietary) Wilderness Limited, Okavango (Proprietary) Holdings Aviation Limited. and Finance Proprietary Investment Amount (receivable)/unpaid at end of the year at end Amount (receivable)/unpaid Amounts charged to profit or loss to profit Amounts charged Amounts unpaid at beginning of the year Amounts unpaid at beginning tax asset of withholding Write-off The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value and cash flow and cash flow value risk, fair risk (including currency of financial risks: market activities expose it to a variety The Company’s focuses risk management programme overall The Company’s risk and liquidity risk. risk and price risk), credit rate interest financial effects on the Company’s of financial markets and seeks to minimise potential adverse on the unpredictability performance. The Company of Directors. the Board by under policies approved the Risk Committee Risk management is carried out by provides The Board units. operating Company’s with the and hedges financial risks in close co-operation identifies, evaluates risk and interest exchange such as foreign specific areas, as policies covering risk management, as well principles for overall risk. rate
17. 16. 15. Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 162 Notes to the Company annual financial statements continued for the year ended 28 February
17. Financial risk management continued
Liabilities at amortised cost Fair value P’000 P’000
2015 Financial liabilities Interest bearing borrowings 60 945 60 945 Trade and other payables (excluding current portion of long-term liabilities) 91 543 91 543 Bank overdraft 49 274 49 274 201 762 201 762 2014 Financial liabilities Interest bearing borrowings 95 639 95 639 Trade and other payables (excluding current portion of long-term liabilities) 14 369 14 369 Bank overdraft 41 891 41 891 151 899 151 899
2015 2014 P’000 P’000
Foreign currency sensitivity If the Pula had weakened against the US Dollar by 5% (2014: 5%), then this would have had the following impact: Net decrease in profit before tax 365 2 909 Interest rate sensitivity If the interest rate had moved by 5% (2014: 5%), then this would have had the following impact: Net increase in profit before tax 149 26
18. Subsequent events A dividend of 15 thebe (2014: 10 thebe) per share has been declared and is payable on or about 25 June 2015 to those shareholders registered at the close of business on Friday, 12 June 2015. The dividend shall be paid in Rand to shareholders on the South African register, calculated at the Pula to Rand exchange rate on or aboxut 21 May 2015.
164 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 165 About Wilderness Sustainability report Corporate governance Annual financial statements 165 | 1.17 0.17 1.93 0.05 0.33 0.63 0.06 0.00 81.60 21.89 18.40 10.09 59.54 36.44 27.72 25.06 96.52 100.00 100.00 100.00 in issue in issue in issue % of shares % of shares % of shares 1 000 shares shares shares 111 217 142 158 764 641 396 772 2 706 176 4 486 158 1 452 093 Number of Number of Number of 84 515 232 64 268 154 58 103 383 23 400 431 451 231 882 451 231 882 451 231 882 50 762 669 42 659 924 223 814 259 138 063 086 189 222 527 1.73 0.18 0.18 0.69 0.52 2.94 3.29 0.69 2.08 2.94 0.69 14.01 81.08 13.89 97.06 47.58 33.39 100.00 100.00 100.00 % of total % of total % of total Integrated Annual Report 2015 Holdings Limited Integrated Wilderness shareholdings shareholdings shareholdings 1 1 4 4 4 3 19 81 12 17 10 80 17 578 576 193 578 275 467 561 Number of Number of Number of shareholdings shareholdings shareholdings Strategic holdings (>10%) Strategic Directors and associates (direct and associates (direct Directors holding) and indirect trading from restricted Employees Total Total type Shareholder Total Distribution of shareholders Non-public shareholders Shareholder spread Shareholder
Public shareholders shareholders Public
1 – 1 000 shares companies Private Individuals 1 001 – 10 000 shares 10 001 – 100 000 shares Public companies Public 100 001 – 1 000 000 shares Nominees and trusts 1 000 001 shares and over 1 000 001 shares Other corporations Other corporations Pension funds Pension Close corporations Close corporations Analysis of ordinary shareholders 2015 as at 28 February Appendices Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 164 Appendices continued
Analysis of ordinary shareholders continued as at 28 February 2015
Beneficial shareholders with a holding greater Number of % of shares than 3% of the shares in issue shares in issue
Wine Investments Limited 80 498 570 34.72 Puma SE/Pinault-Printemps-Redoute (PPR)/Kering 58 027 662 25.02 Winslow Financial Investments Limited 20 443 000 8.82 McCulloch, MW 10 063 593 4.34 Friedman, R 9 973 810 4.30 Vincent, KNW 9 884 701 4.26 Payne, AG 9 679 004 4.17 Bell, M 7 197 966 3.10 Total 205 768 306 88.73
Number of shareholdings
Total number of shareholdings 578
Total number of shares in issue 231 882 451
JSE share price performance Rand
Closing price 28 February 2014 3.50 Closing price 28 February 2015 4.20 Closing high for the period 4.20 Closing low for the period 3.50 Total volume traded 1 207 604
Volume traded as a % of shares in issue 0.521%
BSE share price performance Pula
Closing price 28 February 2014 2.60 Closing price 28 February 2015 3.20 Closing high for the period 3.20 Closing low for the period 2.60 Total volume traded 430 278
166 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 167 About Wilderness Sustainability report Corporate governance Annual financial statements 167 | % 2014 42.11 50.00 99.00 89.00 50.00 50.00 49.00 50.00 70.00 50.00 95.00 50.00 37.88 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 – % 2015 42.11 53.71 70.00 50.00 50.00 50.00 50.00 95.00 49.00 99.00 89.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Effective holding Effective
100 100 100 100 100 100 100 102 100 100 300 1 000 5 000 5 000 2 698 12 000 10 000 10 000 50 000 40 000 Shares in issue 100 000 100 000 300 000 500 000 5 000 000 20 000 000 C C C C C C B B B B B B B B B B B B D D D D D D D D Integrated Annual Report 2015 Holdings Limited Integrated Wilderness business Nature of Nature Safari Consultancy explorations lodges and safari Camp, Finance and asset management and touring Transfer Non-trading = = = = = Incorporated in South Africa Incorporated Limited and Finance Proprietary Safaris Investment Wilderness Incorporated in Bermuda Incorporated Safaris Limited Wilderness Wilderness Safaris Finance & Investments Company (Zimbabwe) (Pvt) Limited (Zimbabwe) Company Safaris Finance & Investments Wilderness Wilderness Camps of Zimbabwe (Pvt) Limited Camps of Zimbabwe Wilderness Wilderness Safaris Zimbabwe (Pvt) Limited Safaris Zimbabwe Wilderness Underneath Trading (Pvt) Limited Trading Underneath Incorporated in Zimbabwe Incorporated (Pvt) Limited Investments Bamberg Wilderness Air Zambia Limited Wilderness Wilderness Tours Limited Tours Wilderness Luamfwa Lodge Limited Lodge Luamfwa Incorporated in Zambia Incorporated African Experience Limited Santawani Partnership (Proprietary) Limited Santawani Partnership (Proprietary) Kasane Fish Farms (Proprietary) Limited (Proprietary) Fish Farms Kasane Hana-Ven (Proprietary) Limited (Proprietary) Hana-Ven Waves of Africa Tours (Proprietary) Limited (Proprietary) Tours of Africa Waves Sefofane Aviation Holdings (Proprietary) Limited Holdings (Proprietary) Sefofane Aviation Wilderness Air Botswana (Proprietary) Limited Air Botswana (Proprietary) Wilderness Safari Adventure (Proprietary) Limited (Proprietary) Safari Adventure Paddle Safaris (Proprietary) Limited Safaris (Proprietary) Paddle Okavango Wilderness Safaris (Proprietary) Limited Safaris (Proprietary) Wilderness Okavango Northern Limited Air Maintenance (Proprietary) Micheletti Bates Safaris (Proprietary) Limited Micheletti Bates Safaris (Proprietary) Linyanti Investments (Proprietary) Limited (Proprietary) Linyanti Investments Great Explorations ((Proprietary) Limited ((Proprietary) Explorations Great Flamingo Investments (Proprietary) Limited (Proprietary) Flamingo Investments Active subsidiaries in Botswana Incorporated Limited (Proprietary) Baobab Safari Lodges A B C D F Wilderness Holdings Limited Holdings Wilderness ANNEXURE 1 Subsidiary and associate companies of Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 166 ANNEXURE 1
Subsidiary and associate companies of Wilderness Holdings Limited continued
Effective holding
Nature of Shares 2015 2014 business in issue % %
Non-trading companies Botswana Mowana Consultants (Proprietary) Limited F 150 Okavango Wilderness Safaris Lodges (Proprietary) Limited F 10 000 Frogiface (Proprietary) Limited A 100
Incorporated in Luxembourg Norisco Holdings SA C 19 600 20.00 20.00
Zimbabwe Berryland Investments (Pvt) Limited B 10 000 42.11 42.11 Mana Pools Wildlife Safaris (Pvt) Limited B 250 000 42.11 42.11 Birding Safaris (Pvt) Limited F 100 50.00 50.00 Ruckomechi (Pvt) Limited F 100 42.11 42.11 Werburgh Marketing (Pvt) Limited F 100 100.00 100.00 Right Night Lodges (Pvt) Limited F 100 100.00 100.00 Muroti Investments (Pvt) Limited B 10 000 Woodvalley Lodge (Pvt) Limited B 100
Zambia The Zambian Touring Company Limited B 5 000 000
A = Safari Consultancy B = Camp, lodges and safari explorations C = Finance and asset management D = Transfer and touring F = Non-trading
168 | Wilderness Holdings Limited Integrated Annual Report 2015 Wilderness Holdings Limited Integrated Annual Report 2015 | 169 About Wilderness Sustainability report Corporate governance Annual financial statements 169 | % 0.00 0.00 0.00 2014 19.00 55.00 75.00 99.00 72.50 60.00 55.00 89.50 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 % 2015 51.00 19.00 72.50 75.00 55.00 55.00 60.00 89.50 99.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Effective holding Effective 101 101 100 100 100 100 100 100 100 100 100 100 100 100 100 100 300 200 400 200 Shares in issue 100 000 466 000 1 333 333 C A A B B B B B B B B B B B B B B B B B D D D Integrated Annual Report 2015 Holdings Limited Integrated Wilderness business Nature of Nature Safari Consultancy explorations lodges and safari Camp, Finance and asset management and touring Transfer Non-trading = = = = = Incorporated in South Africa Incorporated Limited Proprietary Centre Cultural Gugulesizwe Limited Camp Proprietary Pafuri Limited Proprietary Bay Lodge Rocktail Limited Safaris Camps of South Africa Proprietary Wilderness in Namibia Incorporated Limited Camp (Proprietary) Damaraland Limited Camp (Proprietary) Cafema Serra Limited (Proprietary) Taimibia Limited Company (Proprietary) The Namib Lodge Wilderness Touring Cape Proprietary Limited Cape Proprietary Touring Wilderness Limited Proprietary Travels Trev and Tes (formerly Limited Air South Africa Proprietary Wilderness Limited Camp Proprietary Manzengwena Wilderness Limited Proprietary Company Safari and Adventure Wilderness Limited Safaris Proprietary Wilderness Limited Camp (Proprietary) Nawas Doro Limited (Proprietary) Kulala Limited Properties (Proprietary) Kupenda Limited Shop (Proprietary) Travel Namib Limited Safaris (Proprietary) Wilderness Namib Limited (Proprietary) Lodge Palmwag Limited Air Namibia (Proprietary) Wilderness in Kenya Incorporated and Fifteen Limited Hundred Two Goodison Incorporated in Rwanda Incorporated Safaris Rwanda Limited Wilderness Imizi Limited Eco Tourism Development Limited Development Tourism Imizi Limited Eco A B C D F ANNEXURE 1 Subsidiary and associate companies of Wilderness Safaris Limited Proprietary and Finance Investment Integrated Annual Report 2015 Holdings Limited Integrated Wilderness | 168 Notes
170 | Wilderness Holdings Limited Integrated Annual Report 2015 Corporate information
Incorporated in the Transfer secretaries Sponsor Republic of Botswana Transaction Management Services Rand Merchant Bank Limited Registration number 2004/2986 Proprietary Limited A division of FirstRand Bank Limited trading as Corpserve Botswana 1 Merchant Place Unit 206, 2nd Floor Corner Fredman Drive and Rivonia Road Registered address Plot 64516 Sandton, 2196, South Africa Deloitte House Showgrounds Close PO Box 786273, Sandton, 2146 Plot 64518 Fairgrounds Office Park South Africa Fairgrounds Office Park Gaborone, Botswana Gaborone, Botswana PO Box 1583, AAD, Gaborone Botswana Transfer secretaries Computershare Investor Services Group Company Secretary Proprietary Limited Sidney Mganga A member of the IFSC 70 Marshall Street Deloitte & Touche House Botswana International Financial Johannesburg, 2001, South Africa Plot 64518 Services Centre PO Box 61051, Marshalltown, 2107 Fairgrounds Office Park Plot 50676, Fairgrounds Office Park South Africa Gaborone, Botswana Private Bag 160, Gaborone, Botswana Legal advisers Auditors in Botswana Registered as an external Collins Newman & Co Deloitte & Touche company in South Africa Dinatla Court Deloitte & Touche House Registration number 2009/022894/10 Plot 4863 Plot 64518 Gaborone, Botswana Fairgrounds Office Park PO Box 882, Gaborone, Botswana Gaborone, Botswana Registered address PO Box 778, Gaborone, Botswana 373 Rivonia Boulevard Rivonia, South Africa PO Box 5219, Rivonia, 2128 Bankers South Africa Stanbic Bank Limited Stanbic House Auditors in South Africa Plot 50672 Off Machel Drive, Fairground Deloitte & Touche Private Bag 00168, Gaborone Botswana Building 1 The Woodlands. Woodlands Drive Woodmead, South Africa First National Bank of Botswana Private Bag X6, Gallo Manor, 2052 Ngami Centre South Africa Plot 152 Maun, Botswana Private Bag 231, Maun, Botswana Bankers The Standard Bank of South Africa Limited 7th Floor Standard Bank Centre 3 Simmonds Street Johannesburg, 2001, South Africa
Wilderness Holdings Limited Integrated Annual Report 2015 Thank you
We would like to thank the many people and organisations who supported us during the year and made our operations possible. We have received enthusiastic support from a wide range of trade and other partners, host governments and their respective agencies, local communities and non- government organisations. And of course the business would not begin to function without the guests who visit our operations from all over the world. Finally, and perhaps most importantly, our staff are at the heart of the business and we would like to acknowledge and thank them for the pivotal role that they have played. We are proud of what we have achieved during the year and the contributions that we have made to conservation and to the societies and economies in which we operate. This has been a joint effort and we thank everyone who has joined us on this journey.
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