Integrated Annual Report For the year ended 29 February 2016 About this report

Scope and boundaries we market but do not manage have been we expect our measurement and reporting excluded from the boundaries, whereas activities to become more sophisticated and The scope of this report covers the aspects those camps that we manage but do not therefore more accurate and complete. deemed material in the context of the own have been included; and Group and its stakeholders, based upon the process described on pages 18 and 19. • We have not covered impacts arising Context and attribution in our supply chain. We do, however, We have prepared the report in accordance This report outlines and discusses progress with the GRI G4 – Core. However, the GRI intend to extend our boundaries to include our supply chain in future. across a wide range of dimensions, using indicators are biased towards manufacturing the 4Cs sustainability framework which and extractive industries and contain A full list of the reporting units falling within is explained in some detail in the body of many matters that are not relevant to our the scope of this report is given in the the report. It is important to note that our operations. These have been excluded and a online appendices: Table G. To summarise, degree of influence varies across these note to that effect has been made in the GRI the report covers: dimensions and from location to location, checklist. At the same time, the remaining • Eight offices in six countries; depending upon the nature of our tenure GRI aspects do not cover all matters which • Flying operations in three countries; and contractual engagement, and local are relevant to us. In order to capture these circumstances. As a consequence of this, the missing items, we have reviewed a number • 48 camps in six countries. This differs extent to which we are solely responsible of sustainable tourism initiatives to identify from the numbers reported in prior years for any advance or regression in whichever other possible issues and included these in as the result of the following changes: dimension also varies. For example, under our assessment framework. The resulting – Our withdrawal from the the Conservation C, our degree of influence framework is therefore an amalgam of the management and marketing contract over biodiversity varies greatly and so GRI indicators which are relevant to our in respect of the Lango and Ngaga business, plus additional indicators from camps in Odzala-Kokoua National we take care when claiming any direct other sources. Park, Republic of Congo; and attribution. – Addition of Gomoti Camp and closure Likewise, under the Community C, the level Comments about this report and the of Khwai Adventurer and Discoverer, of our impact on local communities varies initiatives detailed herein can be directed to as well as Linyanti Adventurer Camps [email protected]. (all in Botswana). according to the size of the area concerned, the size and proximity of the community This report covers our financial year from Where possible and meaningful, we have concerned, the nature of our involvement, 1 March 2015 to 29 February 2016. The shown the effects of the changes in scope and other factors. We have taken care in financial results reported are those of the and illustrated trends in performance. these situations to make clear the extent to Wilderness Holdings Limited Group. A full which any achievements or failures under list of the companies making up this Group Accuracy, completeness and these dimensions are a consequence of our is presented on pages 169 to 171. comparability of data engagement. The financial scope and boundaries of this This is the Group’s sixth integrated report. document have been set in accordance with The data reported in this document is Assurance International Financial Reporting Standards. based on our sixth year of reporting on We have considered the recommendation Full details of the accounting policies sustainability indicators. We believe that of the King Code of Corporate Governance adopted are given in the Annual Financial there has been a general improvement in (King III) to seek independent third party Statements. In terms of the sustainability the quality of the data and some errors assurance and decided not to seek external aspects reported in this document, we have reported in prior years have been detected assurance this year. Our reporting processes adopted the following approach to setting and corrected. Nonetheless, some of the have improved and are still improving after the scope and boundaries: data continues to be based upon broad previous assurance engagements. We • We report the results associated with assumptions and extrapolations and may consider seeking external assurance operations falling directly under our requires further refinement (we have noted again, once it is clear that there is real value control. This means that camps which where this is the case). As time goes by, associated with doing so. BACK FLAP OPEN

Contents

About Wilderness ifc Five-year review 2 Wilderness timeline 4 At a glance – Who is Wilderness? 6 Our African footprint 8 The Wilderness business 28 Board of Directors 30 Chairman’s letter 32 Chief Executive Officer’s letter

Sustainability report 36 Commerce 42 Community 68 Culture 76 Conservation

Corporate governance 98 Corporate governance 106 Report of the Audit Committee 107 Report of the Remuneration and Nomination Committee 111 Report of the Social, Ethics and Sustainability Committee 112 Global Reporting Initiative (GRI) G4 content index

Annual financial statements 116 Directors’ responsibility and approval of the annual and separate financial statements 117 Independent auditor’s report 118 Directors’ report 120 Consolidated statement of comprehensive income 121 Consolidated statement of financial position 122 Consolidated statement of changes in equity 124 Consolidated statement of cash flows 125 Summary of significant accounting policies 133 Notes to the consolidated annual financial statements 160 Company statement of comprehensive income 160 Company statement of financial position 161 Company statement of changes in equity 161 Company statement of cash flows 162 Notes to the Company annual financial statements 169 Subsidiary and associate companies of Wilderness Holdings Limited 171 Subsidiary and associate companies of Wilderness Safaris Investment and Finance Proprietary Limited 172 Analysis of ordinary shareholders Shareholders’ information 176 Notice of annual general meeting 178 Annexure A: Notice of annual general meeting – under special business 180 Contact information 181 Form of proxy 182 Notes to the form of proxy

This icon indicates information that appears online

The online appendices referenced in the report can be found here: http://www.wilderness-holdings.com/integrated-annual-report/ online-appendices-2016.pdf Five-year review

Wilderness makes investments and manages its businesses for the long run. The business has now been listed for six years, has been maintaining detailed sustainability data for five of these years, and is thus now able to show long-term trends in data for the most important key performance indicators.

Commerce

Table 1: Five-year review

2012 2013 2014 2015 2016

USD:ZAR exchange rate 7.39 8.37 9.99 10.95 13.50 USD:P exchange rate 6.94 7.71 8.56 9.08 10.42 Occupancy rate % (restated)* 54% 56% 61% 63% 58% Turnover (P million) 680 745 843 945 935 Sustainable profit (P million) 68 95 133 167 173 EBITDA (P million) 78 109 151 182 199 Profit before tax (P million) 16 33 78 109 120 Tax rate 49% 15% 37% 30% 38% Profit after tax (P million) 8 28 48 76 74 HEPS (thebe) 3.76 11.13 16.07 32.49 31.03 Cash generated by operations (P million) 67 78 184 131 135 Capital expenditure (P million) 66 73 81 99 139 Total equity (P million) 331 337 375 444 470

* Occupancy refers to owned camps only.

Figure 3: Profitability

90 36 EBITDA grew by 80 32 70 28 60 24 10% to P199 million Thebe 50 20 40 16

in the 2016 financial year million Pula 30 12 20 8 10 4 0 0 2012 2013 2014 2015 2016 Profit after tax (P million) HEPS (thebe)

Figure 1: Occupancy rate (restated)* Figure 4: Cash flow

71 200 68 175 65 150 62 125 59 100 56 75 Percentage Pula million Pula 53 50 50 25 47 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 * Occupancy refers to owned camps only Cash generated by operations Capital expenditure

Figure 2: Turnover Figure 5: Total equity

1 000 500 950 475 900 450 850 425 800 400 750 375 Pula million Pula Pula million Pula 700 650 350 600 325 550 300 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 We have achieved a 2% reduction in numbers of non-citizens in our Community workforce since 2012 Internal community

Figure 6: Total staff Figure 7: Non-citizens in work force

Botswana Botswana

Namibia Namibia

Seychelles Seychelles

South Africa South Africa

Zambia Zambia

Zimbabwe Zimbabwe

0 200 400 600 800 1 000 1 200 0 20 40 60 80 Number of staff % 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

External community

Figure 8: Total community partnership value Figure 9: Community donations

Vumbura Plains; Botswana Little Vumbura

Banoka Bush Camp; Namibia Khwai Discoverer; Khwai Adventurer; Wilderness Tented South Africa Moremi Tented Camp; Santawani

Zambia

Damaraland Camp

Zimbabwe*

0 500 1 000 1 500 2 000 2 500 Doro !Nawas P’000 2012 2013 2014 2015 2016 Desert Rhino; Hoanib Skeleton Coast * The Zimbabwe figures include amounts raised by Grand Circle Foundation (GCF) with Wilderness and CITW assisting with the selection, implementation and management of all projects initiated with these funds. Serra Cafema Total community partnership Rocktail values have shown steady 0 3 000 6 000 9 000 12 000 15 000 18 000 P’000 growth across all regions 2013 2014 2015 2016 since 2012 About Wilderness About

Conservation contribution Conservation increased by 214% since 2012

Biodiversity report Sustainability

Figure 10: Biodiversity indicators Figure 11: Biodiversity spend and coverage

Research Conservation projects contribution supported (P million)

Institution Biodiversity collaborations coverage (million ha)

IUCN Red List species Biomes conserved Corporate governance Corporate 0 20 40 60 80 100 0 3 6 9 12 15 % 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Energy consumption has reduced by 18% since 2012 Environmental Management Systems

Figure 12: Group carbon emissions Figure 14: Carbon emissions per bednight Annual financial statements financial Annual 2012 2012

2013 2013

2014 2014

2015 2015

2016 2016 0 3 000 6 000 9 000 12 000 15 000 18 000 0,070 0,075 0,080 0,085 0,090 0,095 0,1

Tonnes CO2e Tonnes CO2e

Figure 13: Bottled water consumption Figure 15: Group Environmental Minimum Standards (GEMS) compliance

2012 2013 information Shareholders’

2013 2014

2014 2015

2015 2016 60 65 70 75 80 85 90 2016 % 0 0.5 1.0 1.5 2.0 2.5 Target 80% Litres per bednight

Wilderness Holdings Limited integrated annual report 2016 1 1997 1993 Expansion into 1996 Seychelles, Expansion into Opening of first North Island Namibia and South 1987 permanent camp Africa, opening of Establishment of first in Namibia, Rocktail Bay Lodge, dedicated sales and Damaraland Camp South Africa marketing office in Johannesburg 1991 Acquisition of 1995 Sefofane Air Charters 1999 Expansion into (now known as Renewal 1985 Zimbabwe, Wilderness Air) of Mombo Nduna Lodge Opening of first concession and permanent camps: development of Xigera and Xaro in first truly up- Botswana 1990 1994 market camp Opening of Mombo Camp, Botswana Expansion into 1983 Malawi, Mvuu Camp Formation of the Company

Business milestones Sustainability milestones

1993 First community 1998 partnership formed, Torra Conservancy was officially registered by the Rocktail Bay Lodge, Namibian government as a result of the successful South Africa business joint venture model developed between the community and Wilderness Safaris in 1996

1999 British Airways Tourism for Tomorrow award for Rocktail Bay Lodge, recognising the positive contribution to the local natural and cultural environment Wilderness timeline When the Company was formed in 1983, we commenced 2000 an exciting journey of discovery and learning. On this The Wilderness Wildlife Trust journey, we have reached numerous important business established and sustainability milestones, the most important being (registered 2002) illustrated in the figure. We are particularly proud of the fact that many of these milestones have become precedents for the industry as a whole, and not just our own organisation.

Over 30 years ago, we fell in love with remote and wild places in Africa. We realised that, unless we acted soon, some of Africa’s – and the world’s – most unique areas would be under threat and lost to future generations. Our dream was to protect these places by enabling people to visit them and to earn a living for ourselves at the same time.

2 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

2015 Wilderness Holdings receives Presidential Order of Meritorious Service in “recognition 2012 of exceptional service Expansion into to Botswana” Republic of Congo (Odzala Camps) (exited 2015) and Kenya 2006 (Segera Retreat) Expansion into

Zambia, Shumba and 2014 report Sustainability Kapinga Camps Disposal of Malawi investment 2010 Stock exchange listing 2016 Expansion into Rwanda (Bisate & Sabyinyo Silverback Lodges) and Kenya (Governors’ group of camps)

Wilderness receives 2014 governance Corporate 2005 the World Travel Second round of black Damaraland Camp & Tourism Council 2009 rhino reintroductions wins the Tourism 2016 Tourism for First 100% solar commenced, Botswana for Tomorrow Tomorrow Award in the camp, Kalahari Conservation Award Environment category Plains Camp in recognition for the pioneering and promotion Botswana Rhino of the world’s Reintroduction Project leading examples 2011 of best practice in Establishment of responsible tourism 2010 Group Environmental Commenced Minimum Standards phase-out of (GEMS), target of bottled water use 80% compliance by in Botswana 2016 2003 statements financial Annual Commencement of North 2015 Island Noah’s Ark project GEMS 80% target achieved First reintroductions of 2007 black rhino, Botswana First above ground sewerage treatment plant, Vumbura Plains Camp Third round of black rhino reintroductions 2001 completed, First reintroductions of Botswana white rhino, Botswana

2001 information Shareholders’ Children in the Wilderness established

Wilderness Holdings Limited integrated annual report 2016 3 At a glance Who is Wilderness?

Values

Our values provide a moral compass and framework for decision-making and day-to-day operations within our organisation.

Blueprint

Commerce Community

We create life-changing journeys for our guests People are at the heart of our business. We hope and clients and work closely with our government to provide opportunities and growth to inspire partners, conservation and community our staff and external communities to learn about stakeholders and shareholders, to ensure the nature, love and conserve it, and to realise the ongoing financial success and sustainability of importance of ecotourism. our business.

4 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 5 Vision Dedication Our commitment to our the environment, people and our guests is unwavering. Wilderness Holdings Limited integrated annual report 2016 We aim to maximise aim to We the positive impact our of operations on biodiversity conservation and to build and manage our camps in the most eco- friendly way possible minimise to any negative impacts. Conservation Fun making a enjoy We building difference, and relationships changing lives. Respect authentic, are We honest and ethical. To conserve and restore Africa’s wilderness and wildlife by wildlife and wilderness Africa’s restore and conserve To creating life-changing journeys and inspiring positive action. positive inspiring and journeys life-changing creating Culture Leadership Leadership accountable for our are We to the courage actions, have purpose- and are innovate in shaping a better driven Africa. We respectWe and promote our unique Wilderness culture, as well as those of our employees and neighbouring rural communities. hope We to positively impact a global culture of respect and care for the environment. Our African footprint

Countries Size of area under our protection Chobe 200 km2 Linyanti 1 210 km2 Khwai 1 800 km2 Abu 1 800 km2 Kwedi 600 km2 Chitabe 220 km2 Botswana Santawani 60 km2 Mombo 150 km2 Xigera 60 km2 CKGR 123 km2

Kulala 320 km2 Doro !Nawas 4 073 km2 Torra 3 522 km2 Ongava 300 km2 Palmwag 4 500 km2 Namibia Marienfluss 3 034 km2

North Island 2.1 km2 Seychelles

Maputaland 80 km2 South Africa

Mosi-oa-Tunya 68 km2 Busanga Plains 280 km2 Lufupa 230 km2 2 Zambia Musanza 105 km

Hwange 526 km2 Ruckomechi 39.3 km2 Zimbabwe

New developments or acquisitions Kenya Governors’ Camp Collection: coming on line in 2016/17 144 beds

6 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 7 . Vulnerable online appendices: Table D Secretary bird Southerngroundhornbill Temminck’s ground pangolin Lion Martialeagle Secretary bird Temminck’s ground pangolin Aldabra giant tortoise Seychelles swiftlet kestrel Seychelles Loggerhead turtle Olive ridley turtle Samango monkey Martialeagle Lion Secretary bird Southerngroundhornbill Slaty egret Taita falcon Temminck’s ground pangolin Wattled crane Zambia barbet Cheetah hippo Common Lion Martialeagle Common hippo Common Lion Martialeagle Secretary bird Slaty egret Temminck’s ground pangolin Wattled crane Cape gannet Cheetah Hartmann’s mountain zebra

Endangered

within our areas of operation of areas our within IUCN Red List species occurring occurring List species Red IUCN Wilderness Holdings Limited integrated annual report 2016 refer to the full table in the Critically Endangered Endangered (CE) and Endangered (E), and some of the Vulnerable (V) category, for the Group areas of operation. For more information The IUCN Red List species only contain species listed in the Critically Grey crowned crane Lappet-faced vulture Africanelephant Ludwig’s bustard Lappet-faced vulture Africanelephant Black-footed cat Hawksbill turtle Green turtle Humphead wrasse white-eyeSeychelles Cape gannet hippo Common Leatherback turtle Hooded vulture White-headed vulture African wild dog Grey crowned crane Lappet-faced vulture Steppe eagle Africanelephant hippo Common Cheetah Hooded vulture White-headed vulture African wild dog Cape vulture Black rhino Hooded vulture White-headed vulture African wild dog Lappet-faced vulture Africanelephant Black-footed cat Cheetah Black rhino Hooded vulture cormorant Bank

Governors’ Camp Collection: 16 beds IUCN Red List status

Wilderness Collection: 18 beds 7 Owned 4 Owned 1 Owned 6 Owned 1 Owned 9 Owned 4 Managed Owned13 3 Leased 1 Managed 18 Owned 2 Managed Owned 15 2 Leased Victoria Falls Travel Shop and reservations office Johannesburg and Cape Town Travel Shop and reservations office Livingstone Travel Shop and reservations office Windhoek Travel Shop and reservations office Mahé Travel Shop and reservations office Maun | Gaborone Travel Shop and reservations office Facilities

Aircraft Camp operations and explorations

Rwanda

Beds Wilderness Safaris: 116 beds Wilderness Safaris: 34 beds Wilderness Safaris: 88 beds WildernessCollection: 22 beds Wilderness Safaris: 272 beds Wilderness Safaris: 306 beds WildernessCollection: 12 beds 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 Overview of the business The business is currently supported by were: international and local markets, and has Wilderness Holdings is a Botswana • They wanted somehow to ensure a value proposition of “selling original company, listed on the Botswana Stock that the financial benefits of their experiences in pure wilderness” to Exchange with a secondary inward safaris flowed to Botswana and its discerning international travellers. We listing on the JSE Limited. The Company people and thus help to ensure the sell these experiences to the consumers, acts as the investment holding vehicle conservation of the country’s wildlife our guests, largely through the travel for the business. areas; and trade, our clients. The channels through which these sales are made are complex • They wanted to offer authentic The product sold to our guests, and multifaceted but can be simplified safaris with integrity that catered for through the travel trade, is vertically as per online appendices: Figure C. people as passionate about nature integrated and comprises packages as they were. incorporating some or all of the The Group has a stable of trading following elements: brands. Wilderness Safaris is the At the time, most professional safari original trading brand of the Group outfitters in the photographic side of • Safari camps, lodges and mobile and offers safaris based out of both the industry were not based in Maun, explorations form the basis of the fixed and mobile camps. These are employed mostly expatriates and business; supported by the travel trade and travel sourced their supplies in neighbouring • Guests, staff and camp/lodge agents specialising in the booking and South Africa. The Wilderness founders supplies are transported to and arranging of African travel. These lodge wanted to change this and accordingly between the camps using air and and camp operations are supported by registered a Botswana company and ground transfers. In order to Wilderness Air, our flying business. The based themselves in Maun, south of the achieve this, our flying business other trading brand is the Wilderness Okavango Delta. owns a total of 33 aircraft and leases Collection. This is a stable of unique a further five; In retrospect, this approach was logical sustainable tourism operations in • We operate significant ground and today forms the cornerstone and locations at a distance from our original transfer businesses in central tenet of ecotourism the world areas of operation. Cape Town, Victoria Falls and over. But in the early 1980s it was a Livingstone; and Growth in the Wilderness Group has ground-breaking philosophy and set been achieved over the years by Wilderness Safaris apart. • These integrated itineraries are developed and booked through a moving the same business model into those regions that enjoyed significant From these humble beginnings in tour operating and reservations support from our channels to market. Botswana, the business gradually business operating out of six Our move into the various different expanded into the rest of southern offices in four countries. This often biomes (i.e. major regional biotic Africa and Seychelles. Over time, the incorporates third-party products communities characterised by specific business has evolved into a specialist into the itineraries, for a margin. climate, vegetation and fauna, of which luxury safari operation with 48 different Wilderness presently operates in eight safari camps and lodges, comprising a These operating elements are supported of the 11 in southern Africa) was an total of 850 beds, in six African countries by a finance and asset management effort to ensure that complementary and hosting in excess of 32 000 guests segment. experiences are offered by the tourism per annum. A total of 2 213 staff are employed in business. these businesses.

8 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 9

f mouth: positive feedback Word o Wilderness Holdings Limited integrated annual report 2016 party aircraft party rd rd 3 3 accommodation road flying and transfers 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 the 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 this diagram. Figure 16: Wilderness business model Wilderness 16: Figure The Wilderness business continued

Value and supply chains both the agent network and the guests Finally, we also outsource elements themselves. of the value chain by using third- The value and supply chains of the party accommodations and flying to business are illustrated in Figure 17 Our supply chain is two-dimensional in complete the itineraries of our guests. alongside. that it comprises: This process results in some The diagram shows how prospective • The supply of guests, through by-products, mainly waste of three guests are converted into actual guests the agent network, and their flow forms: waste water, carbon emissions by our trade partners and introduced through the business; and and solid and organic waste. into the business. This process is • Other inputs, mainly the efforts These wastes are the focus of the facilitated by our network of offices of our people (which is why we Environmental Management Systems and Travel Shops, but the main product state that our people are at the under the Conservation dimension of is delivered through our network of heart of our business). We also the 4Cs, detailed in the chapter from safari camps, largely through the use buy in various goods and services page 90. of our own flying (and other transfer) needed to operate our camps and businesses. The main output of the flying businesses to the necessary process is hopefully satisfied customers, standard.

Wilderness Air, Namibia Flying guests over the endless orange dunes of Sossusvlei.

Serra Cafema Camp Overlooking the Kunene River in the Hartmann’s Valley.

Little Makalolo Camp, Zimbabwe Guests watching elephant from the hide.

10 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 11 projects waste water Waste Waste organic Solid and Emissions Conservation Waste Economic contributions Wilderness Holdings Limited integrated annual report 2016 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 3 services suppliers goods and Purchased Purchased Satisfied customers Impact on the environment Value and supply chains and supply Value Figure 17: Value and supply chains Value 17: Figure The Wilderness business continued

Wilderness revenue drivers and their determinants

The three most important drivers of revenue in the Wilderness business are bednight sales (occupancy rates), rates (selling prices) achieved in source currency, and the rate of exchange prevailing at the time. These drivers are in turn determined and influenced by a number of factors as shown in the diagram.

Global

State of global economy Global Exchange rate tourism movements demand Lack of global perturbations

Regional/ National national governance political standards stability

Reported Ease and turnover cost of Regional access Quality of protected areas is influenced Demand by standards of Destination for national Bednights governance marketing tourism sold and PR products

Biological resources

High occupancy rates push Source selling prices currency Management achieved Quality of turnover of protected destinations areas

Selling prices Neighbour Quality of the achieved relations destinations influences quality National of our products

Investment in infrastructure Quality of our products and locations Ongoing maintenance of infrastructure Demand for Quality of our our products services People and and services service development

Cost of our products and services Company

Figure 18: Wilderness revenue drivers and their determinants

12 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 13 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 are maintained with the maintained with are generally for the purposes of generally s with which we engage, NGOs with which we conservation and community conservation Open lines of communication Government permits and staff development. we operate, with typical discussions with operate, we 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 countries in which in the countries the governments and marketing, conservation management and marketing, conservation Suppliers Wilderness Holdings Limited integrated annual report 2016 Frequent engagement is Frequent 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 the Community chapter. Consumers Trade partners Trade 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 who are in turn engaged with at the campswho are These groups of stakeholders are engaged of stakeholders are These groups themselves. Our effortsthemselves. to maintain product promote and sell our brand to paying guests, and sell our brand promote with comprehensively, in order to sustain and in order with comprehensively, grow Wilderness properties,Wilderness as the destination grow intermediaries or agents in the travel trade who trade intermediaries or agents in the travel quality, and therefore sound relations with these sound relations and therefore quality, stakeholders, are discussed in the introduction to discussed in the introduction stakeholders, are

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 19: Wilderness’ stakeholder universe Wilderness’ 19: Figure The Wilderness business continued

Stakeholders and their expectations of Wilderness The table below refers to the stakeholders identified in Figure 19 on page 13 entitled ‘Wilderness’ stakeholder universe’ and identifies the primary and secondary expectations that these stakeholders have of the Group (as well as our expectations of them):

Table 2: Stakeholders

Stakeholder Measures adopted by us to satisfy their group* Details Their most important expectations of us Their other expectations of us expectations Our expectations of them

Guests The guests hosted in our camps are our most • A life-changing journey • Sustainable operations** • Develop in best locations • Return visits and word-of-mouth important customers and stakeholders • Quality products and services in camps and flying • Contributions to conservation and • Investment in quality infrastructure referrals operations community development • Staff development in camps and flying • Prices that are reasonable in relation to quality of operations products and services and those of competitors • Sustainability initiatives • Brand development Agents (clients) Our business uses a business-to-business model • Quality products and services (in camps, flying • Sustainable operations** • Develop in best locations • Wilderness is the supplier of that relies on our worldwide network of agents to operations and travel shops) • Contributions to conservation and • Investment in quality infrastructure choice sell our products and services • Effective, efficient and fast turnaround times and community development • Staff development in camps, flying operations • Sustainability initiatives service out of the Travel Shop, including the ability to and Travel Shops add intellectual value to the journey booked with us • Travel shop productivity improvements • Prices that are reasonable in relation to quality of • Sustainability initiatives products and services and those of competitors • Brand development • Loyalty Staff Our staff deliver our products and services to our • Being part of the cause and purpose of Wilderness • Sustainable operations • Training and development initiatives • Engagement clients and guests and are therefore fundamental • Development and prospects • Contributions to conservation and • Remuneration and incentive structures • Deliver quality products and to the business • Rewards and recognition community development • Sustainability initiatives services to our clients and • Security guests Landlords Most of our operations are located on land • Prompt financial settlements • Contributions to conservation and • Legal and risk management • Quality conservation and leased from a variety of state, private and • Adherence to other lease/concession terms community development • Sustainability initiatives management community landholders • Sustainable operations • Promote destinations • Brand development • Security of tenure • Exclusive access

Host country Our operations occur in a number of sub-Saharan • Employment and diversity • Adherence to regulations • Training and development initiatives • Political and economic stability governments African countries and Indian Ocean islands. • Contribution to the economy • Country marketing and • Engagement in industry development initiatives • Conducive policy and legislative The political and economic environments in • Contributions to conservation and community amplification of the country brand • Brand development framework those countries are critical to the success of our development in international source markets • Legal and risk management • Prompt decision-making business • Sustainable operations • Sustainability initiatives • Land set aside for wildlife and wilderness • Progressive conservation policies and implementation thereof • Country-level marketing Local Our operations all occur in remote rural locations, • Some reward to counteract the costs of living with • Access to the land and resources • Training and development initiatives • Land set aside for wildlife and communities often in proximity to relatively poor local wildlife thereon for subsistence and • Community partnerships*** wilderness communities, some of whom have historical and • Employment cultural purposes • Community development programmes • Reduced problem animal control cultural connections to the land • Engagement in the business • Reduced human-wildlife conflict • Other sustainability initiatives • Contribution to the local economy • Sustainable operations • Contributions to community development • Contributions to conservation

* Any one person and/or organisation could fall into a number of these stakeholder groups.

14 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 15 Engagement and quality products Deliver services and to our clients guests and Quality conservation management Security of tenure access Exclusive and economic stability Political policy and legislative Conducive framework decision-making Prompt Land set aside for wildlife and wilderness conservation Progressive policies and implementation thereof marketing Country-level Land set aside for wildlife and wilderness animal control problem Reduced Return visits and word-of-mouth visits and word-of-mouth Return referrals is the supplier of Wilderness choice Sustainability initiatives Our expectations of them • • • • • • • • • • • • • • • • Wilderness Holdings Limited integrated annual report 2016 Training and development initiatives and development Training initiatives Engagement in industry development development Brand and risk management Legal Sustainability initiatives initiatives and development Training Community partnerships*** programmes Community development Other sustainability initiatives Training and development initiatives and development Training structures and incentive Remuneration Sustainability initiatives and risk management Legal Sustainability initiatives development Brand Develop in best locations Develop in quality infrastructure Investment in camps and flying development Staff operations Sustainability initiatives development Brand in best locations Develop in quality infrastructure Investment in camps, flying operations development Staff Shops Travel and improvements shop productivity Travel Sustainability initiatives development Brand • • • • • • • • • • • • • • • Measures adopted by us to satisfy their adopted by Measures expectations • • • • • • • • • • • Access to the land and resources Access to the land and resources for subsistence and thereon purposes cultural human-wildlife conflict Reduced Sustainable operations Contributions to conservation Adherence to regulations Adherence Country marketing and amplification of the country brand markets in international source Sustainable operations and Contributions to conservation community development and Contributions to conservation community development destinations Promote Sustainable operations** and Contributions to conservation community development Sustainable operations** Sustainable operations** and Contributions to conservation community development We would like to see this expectation move into the ‘most important expectations’ column and become a major factor in choosing travel destinations. column and become a major factor in choosing travel important into the ‘most expectations’ would like to see this expectation move We is presently but there similarly priced products, choosing between for travellers might make the difference that sustainable operations believe date, we To sustainable operations. for more to pay a premium prepared are little evidence that buyers applicable. Where • • • • • • • • • • • • • • Their other expectations of us Their other expectations ** *** Employment and diversity Employment Contribution to the economy and community Contributions to conservation development Sustainable operations the costs of living with to counteract Some reward wildlife Employment Engagement in the business Contribution to the local economy Contributions to community development A life-changing journey and servicesQuality products in camps and flying operations to quality of in relation reasonable that are Prices services and products and those of competitors and servicesQuality products (in camps, flying shops) travel and operations times and turnaround efficient and fast Effective, including the ability to Shop, Travel service out of the to the journey booked with us add intellectual value to quality of in relation reasonable that are Prices services and products and those of competitors Loyalty Being partWilderness of the cause and purpose of and prospects Development and recognition Rewards Security financial settlements Prompt terms to other lease/concession Adherence Sustainable operations • • • • • • • • • Their most important of us expectations • • • • • • • • • • • • • • Our operations occur in a number of sub-Saharan occur in a number of sub-Saharan Our operations African countries and Indian Ocean islands. in The political and economic environments critical to the success of our those countries are business locations, rural remote in occur all operations Our poor local to relatively often in proximity historical and communities, some of whom have connections to the land cultural Details our most The guests hosted in our camps are important customers and stakeholders Our business uses a business-to-business model our worldwide network of agents to on that relies and servicessell our products and services our products to our Our staff deliver fundamental therefore clients and guests and are to the business located on land are Most of our operations and of state, private a variety leased from community landholders Host country governments Local communities Stakeholder Stakeholder group* Guests Agents (clients) Staff Landlords The Wilderness business continued

Table 2: Stakeholders continued

Stakeholder Measures adopted by us to satisfy their group* Details Their most important expectations of us Their other expectations of us expectations Our expectations of them

NGOs Because of our activities in conservation and • Contributions to conservation and community • Adherence to regulations • Growth of the business • Support in creation of rural development, and our engagements development • Employment and diversity • Training and development initiatives constructive relationships with local communities and host country • Sustainable operations • Contributions to local (and • Engagement in industry development initiatives with communities and host governments, we engage and work with a large • Ethical operations and transparency national) economies • Sustainability initiatives governments number of conservation and development NGOs • Legal and risk management • Support in creation of conducive policy and legislative frameworks • Land set aside for wildlife and wilderness • Progressive conservation policies and implementation thereof • Management of community expectations

Shareholders The Wilderness Group is publicly listed and • Share price growth • Contributions to conservation and • Investment in quality products and services • Capital for investment and and potential traded and owned by numerous small and large • Dividends community development • Brand development development investors shareholders in Botswana, South Africa and • Sustainable business • Adherence to regulations • Productivity improvements worldwide • Security of tenure • Growth of the business • Sustainability initiatives • Legal and risk management

Suppliers of Our business relies on a large number of third- • Prompt payment • Adherence to contract conditions • Legal and risk management • Quality products and services products and party suppliers of goods and services to sustain • Ongoing business • Competitive pricing services**** our business • Reliability • Sustainable operations and sources

Other business We work with a number of other business • Delivery on contract terms and conditions • Ethical and sustainable business • Investment in quality products and services • Quality products and services partners partners, primarily minority shareholders in • Prompt settlement of financial terms • Growth of the business • Brand development • Competitive pricing Group subsidiaries, as well as owners of other • To be treated as genuine partners with regular • Contributions to conservation and • Productivity improvements • Sustainable operations and products (some of which we manage and/or engagement and consultation community development • Security of tenure sources market) • Ethical and transparent operations • Growth of the business • Capital for investment and • Sustainability initiatives development • Legal and risk management

Media We rely heavily on various forms of media to • Contributions to conservation and community • Ethical and transparent • Sustainability initiatives • Balanced coverage promote our products and services. In addition, development operations • Brand development our activities in rural areas and conservation • Sustainable business attract media attention and it is important that this coverage is constructive

* Any one person and/or organisation could fall into a number of these stakeholder groups. **** As opposed to suppliers of business (agents) dealt with separately above. See diagram ‘Value and supply chains’ for better explanation of the difference.

It will be noted from the above table that there are many common themes in terms of stakeholder expectations: by definition, these common themes constitute material aspects and are addressed in the section that follows. Others constitute either opportunities or risks, or are considered strategic priorities, and are also addressed in the following section.

16 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 17 Quality products and servicesQuality products pricing Competitive Reliability and Sustainable operations sources and servicesQuality products pricing Competitive and Sustainable operations sources and Capital for investment development Balanced coverage development Brand Support of in creation relationships constructive host with communities and governments Support of in creation policy and legislative conducive frameworks Land set aside for wildlife and wilderness conservation Progressive policies and implementation thereof Management of community expectations and Capital for investment development • • • • • • • • • • Our expectations of them • • • • • • Wilderness Holdings Limited integrated annual report 2016 Investment in quality products and services in quality products Investment development Brand improvements Productivity Security of tenure of the business Growth Sustainability initiatives and risk management Legal Sustainability initiatives Legal and risk management Legal Growth of the business Growth initiatives and development Training initiatives development Engagement in industry Sustainability initiatives and risk management Legal and services in quality products Investment development Brand improvements Productivity Security of tenure of the business Growth Sustainability initiatives and risk management Legal • • • • • • • • • • • • • • • • • • • • • Measures adopted by us to satisfy their adopted by Measures expectations Ethical and transparent Ethical and transparent operations Ethical and sustainable business of the business Growth and Contributions to conservation community development Adherence to contract conditions contract to Adherence Contributions to conservation and Contributions to conservation community development regulations to Adherence Adherence to regulations Adherence and diversity Employment (and Contributions to local national) economies • • • • • • • • • • Their other expectations of us Their other expectations Contributions to conservation and community Contributions to conservation development Sustainable business Contributions to conservation and community Contributions to conservation development Sustainable operations and transparency Ethical operations price growth Share Dividends Sustainable business payment Prompt Ongoing business terms and conditions on contract Delivery settlement of financial terms Prompt as genuine partners be treated with regular To engagement and consultation operations Ethical and transparent • • Their most important of us expectations • • • • • • • • • • • • We rely heavily on various forms of media to heavily on various rely We services. and our products promote In addition, and conservation areas our activities in rural media attention and it is importantattract that is constructive this coverage Details and in conservation Because of our activities and our engagements development, rural and host country with local communities and work with a large engage we governments, NGOs and development number of conservation is publicly listed and Group Wilderness The small and large numerous by and owned traded in Botswana, South Africa and shareholders worldwide of third- number on a large Our business relies party of goods and services suppliers to sustain our business work with a number of other business We partners, in primarily minority shareholders of other as owners subsidiaries, as well Group manage and/or (some of which we products market) Media Stakeholder Stakeholder group* NGOs Shareholders and potential investors Suppliers of and products services**** Other business partners The Wilderness business continued

Material matters, risks, and social impacts that cross a threshold • Undertaken the above review of opportunities and strategy in affecting the ability to meet the needs stakeholders and their expectations of the present without compromising of Wilderness. There are many The Global Reporting Initiative defines the needs of future generations. These common themes amongst these materiality as “the threshold at which material Aspects often have a significant stakeholders and these must, by Aspects become sufficiently important financial impact in the short term or definition, constitute material that they should be reported. Beyond long term on an organization. They are matters; this threshold, not all material Aspects therefore also relevant for stakeholders • Reviewed the minutes of Board are of equal importance and the who focus strictly on the financial and Executive Committee (Exco) emphasis within a report should reflect condition of an organization”*. the relative priority of these material meetings. Any matters that attract Aspects. Determining materiality for In order to identify the matters that are regular attention at either Board a sustainability report also includes material to the Wilderness Group, we or Exco level are considered considering economic, environmental have: material; and

* Global Reporting Initiative, 2013. G4 Sustainability Reporting Guidelines. Reporting Principles and Standard Disclosures.

18 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 19 Wilderness Air Botswana Wilderness Delta. the Okavango Flying over methodology. The results are therefore therefore are The results methodology. that this believe We highly imprecise. the use of this renders contradiction inappropriate. representation graphical a discussion provide to prefer We to the of each matter in relation not and have stakeholders concerned numerical to assign attempted this year to the materiality assessment. values Wilderness Holdings Limited integrated annual report 2016 Linkwasha Camp, Zimbabwe Linkwasha Camp, the pan Elephant drinking from of camp. in front The emerging trend is for materiality is for materiality trend The emerging assessments to be represented Our 2015 Integrated graphically. However, this trend. Report followed about the value reservations have we in that the graphical of this approach an impression creates representation in and rigour of mathematical precision is that producing The reality the results. requires representations such graphical the making of assumptions in regard firstly to the methodology applied and secondly the data input into the Consulted the Risk Register (which (which Consulted the Risk Register basis is updated on an ongoing Risk the by reviewed and regularly risks Committee) for any residual definition. that fit the materiality • the process, Based on the above to 25 are on pages 20 matters shown Wilderness to the material considered Some constitute risks, others Group. opportunities,are and the strategies and implemented in developed outlined in the table. are response The Wilderness business continued Potential impact on business Risk Opportunity Strategy

Table 3: Material matters

Matter Status Why is it material? Stakeholders Strategy How do we manage the matter?

Global factors Because tourism entails transporting the consumer to the product, compared to so many industries where These are, of course, beyond the control of the business. All we can do is be aware of these the product is transported to the consumer, the business is exposed to global factors that might influence issues and any potential threats, and ensure that the business takes any steps necessary to potential guests’ willingness to travel. Examples of these include threats to the global economy, economic mitigate the effects of such factors. issues in source markets, global events such as Soccer World Cups and security threats including wars. Ebola The outbreak of Ebola, which occurred in west Africa in July and August 2014, has been the cause of much At the onset of the outbreak, our travel partners expressed concern about our normal distress for the tourism industry in southern Africa. None of the countries in which we operate recorded cancellation policies and the possibility that fear of having to cancel, in the event of a a single case of the disease, and none of these countries have direct flight connections with the region. worsening of the situation, was preventing possible guests from making bookings. Our Nonetheless, the barrage of negative news on Western media at the time had the effect of dramatically policies in this regard were waived in response. As the outbreak escalated and dragged on, it reducing the demand for travel to all African destinations, including those far removed and unconnected became necessary for the industry as a whole to collaborate in efforts to educate the market to west Africa. as to the size of Africa and the distances of our products from the affected countries in west Africa. Regrettably, these efforts were limited in their impacts and the outbreak had the effect of significantly depressing demand for African safari products from August 2014 until the beginning of 2015. Because of the advance lead times on bookings, this reduced booking activity translated into reduced bookings during the 2015 calendar year. Security of tenure Almost all of our camps are located on land leased under a variety of long-term lease and concession We use a variety of mechanisms to ensure this goodwill persists, including paying market- agreements with either state or community landlords and partners. This means that the long-term related rentals or profit shares, regular dialogue and responsible business practices. See sustainability of the business is dependent upon the maintenance of sound business and working the discussion under External Community. See also online appendices: Table H in which a relationships with the landlords in question. summary of all leases and their duration is shown. Growth of the Given the high levels of capacity utilisation in Botswana, and the fact that there are limited prospects The Group has effectively no presence in east Africa, Africa’s largest safari tourism region. This business for further expansion in that country, material growth of the business will have to occur elsewhere. Our fact, taken with the limited prospects for growth of the business in southern Africa (at least in businesses in Namibia and the Zambezi region are showing pleasing progress following the difficult years the short term), suggests that expansion into east Africa is the logical next step for Wilderness. after the global financial crisis but cannot be expected to grow dramatically in the short term. We have been exploring prospects in this region for some time and were delighted to be able to announce in April 2016 the acquisition of a 51% stake in the Governors’ Camp group of companies, owner and operator of five leading safari camps in Kenya and Rwanda. This pivotal acquisition partners the Group with a leading safari brand in east Africa and provides an excellent basis for further expansion into the broader region. Linkwasha opening Historically, the Group derived a substantial portion of its profits from a well-established business in Linkwasha Camp in Hwange National Park was established in 1999. Once a major part of the Zimbabwe. However, the onset of the political and economic crisis in that country led to the collapse of visitor business, in the years following the collapse of Zimbabwe’s tourism industry it ‘ticked over’, demand and the industry contracted accordingly. Our business in the country has been maintained at low latterly serving as the base for a low margin tour series business. The camp had become run levels through the intervening period, making losses much of the time, and levels of investment have been down. In 2014, it was agreed to rebuild the camp. This is the first major new camp development restricted. However, by late 2014, the economy and the industry were showing signs of strong improvement in the country since 2000 and the re-built camp opened on 1 May 2015 to rave reviews from the and it was thought appropriate to make a major new investment in the country. travel trade and the press. The expected revival of our Zimbabwe business is occurring and the new camp has already received a number of travel industry awards for excellence (see Awards on page 31). Exchange rate Our products are largely priced in the currencies of our source markets and most of our revenues are therefore We cannot, of course, in any way influence exchange rates. These currency risks are managed fluctuations generated and received in those currencies. The US Dollar is our most important trading currency. Conversely, through a variety of mechanisms including: most of our costs are incurred in local currencies, of which the Botswana Pula, South African Rand (or the  • The business employs a ‘natural’ or ‘internal’ hedge by borrowing, in the main, in the same linked Namibian Dollar) and the US Dollar are the most important. Revenues and costs are, of course, currency (the US Dollar) in which the bulk of our revenues are earned; and converted into Botswana Pula for reporting purposes. Fluctuations in the respective strengths of our source, • Use of a variety of forward foreign exchange contracts (FECs) to limit our exposure on operating and reporting currencies therefore impact on our business in a number of respects: US Dollar revenues being converted into operating and reporting currencies. • Through the impact on our margins where revenues are derived in source currencies but expenses are incurred in operating currencies; Over the last few years, as the economic fundamentals of the Rand have deteriorated and it has • Through their impact on price and demand where some source currencies are weak when compared devalued against the US Dollar, we have placed less reliance on these mechanisms: we have against operating currencies. Our business model is predicated on the assumption that local currencies taken on local currency debt and we have also reduced to zero the levels of forward exposure will devalue against source currencies in reflection of the inflation and interest rate differentials between that are hedged through FECs. our operating countries and source markets. Where this does not occur, as in the strengthening of the Rand against the Dollar in the years following the global financial crisis, the business is placed under pressure. Currencies have largely moved in our favour during the reporting period (there have been confounding movements); • Through their impact on competitiveness of our Dollar-priced products, as compared with Rand-priced products, when the Rand devalues dramatically against the Dollar, as has happened in the reporting period; and • Translation impacts from operating currencies in the various countries in which we operate, to the reporting currencies.

20 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 21 Critical to stakeholders to Of interest stakeholders Media online appendices: Table H in which a Table online appendices: partners Other business Wilderness Holdings Limited integrated annual report 2016 Suppliers Shareholders Shareholders and investors NGOs Local Local The business employs a ‘natural’ or ‘internal’ hedge by borrowing, in the main, in the same borrowing, hedge by or ‘internal’ a ‘natural’ The business employs earned; and are (the US Dollar) in which the bulk of our revenues currency (FECs) contracts on exchange to limit our exposure foreign of forward Use of a variety being converted and reporting into operating currencies. US Dollar revenues communities summary of all leases and their duration is shown. summary of all leases and their duration We cannot, of course, in any way influence exchange rates. These currency risks are managed risks are These currency rates. cannot, of course, in any way influence exchange We including: of mechanisms a variety through • • and it has deteriorated have fundamentals of the Rand as the economic the last few years, Over have on these mechanisms: we placed less reliance have we against the US Dollar, devalued exposure of forward the levels to zero also reduced have debt and we taken on local currency FECs. hedged through that are We use a variety of mechanisms to ensure this goodwill persists, including paying market- of mechanisms to ensure use a variety We See responsible business practices. regular dialogue and shares, or profit rentals related See also the discussion under External Community. This safari tourism region. largest in east Africa, Africa’s no presence has effectively The Group southern Africa (at least in of the business in for growth fact, taken with the limited prospects the shortWilderness. that expansion into east Africa is the logical next step for term), suggests delighted to be able for some time and were in this region been exploring prospects have We of Camp group stake in the Governors’ to announce in April 2016 the acquisition of a 51% This pivotal Kenya and Rwanda. leading safari camps in of five and operator companies, owner an acquisition partners in east Africa and provides with a leading safari brand the Group basis for furtherexcellent region. expansion into the broader was established in 1999. Once a major partLinkwasha Camp in Hwange National Park of the tourism industry it ‘ticked over’, the collapse of Zimbabwe’s following business, in the years The camp had become run tour series business. latterly serving margin as the base for a low This is the first major new camp development the camp. to rebuild In 2014, it was agreed down. the from reviews camp opened on 1 May 2015 to rave in the country since 2000 and the re-built is occurring and the business of our Zimbabwe The expected revival and the press. trade travel (see Awards for excellence industry awards a number of travel received new camp has already on page 31). These are, of course, beyond the control of the business. All we can do is be aware of these can do is be aware of the business. All we the control of course, beyond These are, to that the business takes any steps necessary and ensure threats, issues and any potential factors. mitigate the effects of such partners concern about our normal expressed our travel At the onset of the outbreak, of a event the possibility that fear of having to cancel, in the cancellation policies and Our making bookings. possible guests from was preventing worsening of the situation, on, it escalated and dragged outbreak As the in response. waived were policies in this regard in effortsbecame necessary for the industry as a whole to collaborate to educate the market in west the affected countries from products of Africa and the distances of our as to the size had the effect these efforts limited in their impacts and the outbreak were Africa. Regrettably, August 2014 until the from demand for African safari products of significantly depressing booking lead times on bookings, this reduced beginning of 2015. Because of the advance bookings during the 2015 calendar year. into reduced activity translated How do we manage the matter? do we How Strategy Host country governments Landlords Staff Agents  Stakeholders Stakeholders involved Stakeholders Guests Through the impact on our margins where revenues are derived in source currencies but expenses are but expenses are currencies in source derived are revenues where the impact on our margins Through currencies; in operating incurred when compared weak are currencies some source their impact on price and demand where Through on the assumption that local currencies Our business model is predicated currencies. against operating between rate differentials inflation and interest of the in reflection currencies source against will devalue of the as in the strengthening this does not occur, Where markets. countries and source our operating global financial crisis, the business is placed under the following against the Dollar in the years Rand been during the reporting have period (there in our favour moved largely have Currencies pressure. confounding movements); with Rand-priced as compared products, of our Dollar-priced their impact on competitiveness Through as has happened in the reporting against the Dollar, dramatically devalues when the Rand products, period; and to the operate, countries in which we in the various currencies operating impacts from Translation reporting currencies. Historically, the Group derived a substantial portion of its profits from a well-established business in substantial portion a a from derived of its profits the Group Historically, the political and economic crisis in that country led to the collapse of visitor the onset of However, Zimbabwe. country has been maintained at low Our business in the accordingly. demand and the industry contracted been have of investment the intervening of the time, and levels period, making losses much through levels improvement signs of strong showing and the industry were late 2014, the economy by However, restricted. in the country. to make a major new investment and it was thought appropriate therefore are markets and most of our revenues of our source priced in the currencies largely are Our products Conversely, The US Dollar is our most important currency. trading in those currencies. and received generated (or the South African Rand of which the Botswana Pula, in local currencies, incurred most of our costs are of course, and costs are, the most important.linked Namibian Dollar) and the US Dollar are Revenues of our source, strengths converted for reporting Pula into Botswana purposes. Fluctuations in the respective impact on our business in a number of respects: and reporting therefore operating currencies • • • • Because tourism entails transporting the consumer to the product, compared to so many industries where to so many industries where Because tourism entails transporting compared the consumer to the product, influence the business is exposed to global factors that might is transportedthe product to the consumer, economic to the global economy, Examples threats of these include to travel. willingness potential guests’ wars. including and security threats Cups World such as Soccer markets, global events issues in source been the cause of much Africa in July and August 2014, has in west of Ebola, which occurred The outbreak recorded operate of the countries in which we for the tourism industry in southern Africa. None distress region. flight connections with the direct and none of these countries have a single case of the disease, of dramatically media at the time had the effect Western news on of negative Nonetheless, the barrage and unconnected including those far removed to all African destinations, the demand for travel reducing Africa. to west lease and concession of long-term on land leased under a variety located Almost all of our camps are and partners.This means that the long-term community landlords with either state or agreements maintenance of sound business and working sustainability of the business is dependent upon the in question. with the landlords relationships limited prospects are in Botswana, and the fact that there of capacity utilisation the high levels Given Our to occur elsewhere. of the business will have material growth for further expansion in that country, years the difficult following pleasing progress showing are businesses in Namibia and the Zambezi region in the short dramatically term. to grow after the global financial crisis but cannot be expected Why is it material? Status Matter Global factors Ebola Security of tenure of the Growth business Linkwasha opening Exchange rate fluctuations The Wilderness business continued Potential impact on business Risk Opportunity Strategy

Table 3: Material matters continued

Matter Status Why is it material? Stakeholders Strategy How do we manage the matter?

South Africa visa In October 2014, South Africa implemented onerous new regulations for visas for persons entering South The Group participated in industry-level discussions with the South African government in regulations Africa, especially where minors were involved. This implementation was preceded by confusion and negative an effort to minimise the negative effects that were expected to result from implementation publicity. Although we only have one camp product in South Africa, the large majority of our guests transit of the regulations. When it became apparent that the regulations were to be implemented, South Africa and were affected by these regulations. we notified all agents (most of whom were already aware) and also ensured all guests were advised of the requirements. Brand development In a transparent and modern world, brand integrity and reputation is critical to long-term success. In the In addition to careful monitoring of social media and other media platforms and active public absence of a strong brand, all promotional, marketing and sales activities are more challenging and less cost relations programmes in source markets, a core part of managing brand reputation is to ensure efficient, as are attempts to secure new development opportunities. The credibility of brand purpose and a consistency of brand purpose and understanding across the Company. Having this internal integrity needs to be sacrosanct and cannot be undermined. Virality of social and other media represent the platform in place is critical to all external brand building efforts. To this end, we regularly review biggest potential threat to this, with even unsubstantiated slurs and slights taking on larger proportions than and reflect on business activities through the prism of the vision and values of the Company would have been possible in the past, thus necessitating time-consuming and expensive remedial action. and are currently engaged in creating and training an extensive team of nearly 250 brand champions and ambassadors across the organisation. Quality of our areas The quality of our operations, and therefore levels of guest satisfaction, are a function of the quality of the Our people are always on the lookout for new areas that have the potential to support quality areas in which our camps are located. This quality is in turn a function of the variety and density of wildlife safari tourism operations and where we believe we have the potential to make a contribution to populations, attractiveness of habitats and scenery, availability of other attractions such as culture, as well conservation and/or development. These opportunities influence strategic planning processes as ease of access. Any threats to these factors, such as illegal wildlife offtakes or habitat destruction, will relating to growth of the business. eventually undermine the quality of our products and ultimately our business. In regard to the areas in which we are already operating, this is one of the most important Aligned to this is the question of our competitors: are they occupying quality areas and denying us access to functions of our country-level sustainability departments: to continuously satisfy ourselves them or alternatively improving their respective competitive position(s). that we are not in any way impacting negatively on these areas, that any other threats to them are identified and counteracted, and finally that any opportunities to improve these areas are identified and implemented (see also Sustainability of operations below). Quality of products Satisfied customers, whether guests or their agents, are the most important output of our business. We also We have adopted a number of strategies to improve and maintain quality of our products and and services rely heavily on repeat business and word-of-mouth referrals to generate new business. For these reasons, it is services, falling broadly into the following categories: critical that we maintain the quality and relevance of our products and ensure that all customers are delighted • Training and development of the staff who are responsible for delivering the product and by their engagements with us. This is a continual focus of the business across many facets: for communicating with our clients and guests before, during and after they visit. See the • Agent satisfaction resulting from their engagements with our Travel Shops, on behalf of their customers; Internal Community chapter for further discussion of these efforts; • Guest satisfaction resulting from their enjoyment of their visits to our camps and the experiences offered • Investments in the physical infrastructure so that product quality is maintained; and therein; and • Initiatives to improve the systems and processes by which the product is delivered • Ancillary aspects of our offering, including transfer services and third-party products and services. to clients and guests. These initiatives include a number of important technological innovations. Of course, the quality of our products and services is that much more critical if we are to gain market share. Finally, in order to measure our performance as a result of these strategies, we have reinforced our efforts to ascertain the extent to which we have matched our guests’ expectations and what must be done to improve this performance. Strength of trade As noted in the stakeholder analysis above, our business employs a business-to-business sales model and Our marketing and sales functions are structured in response to these realities and our relationships we have limited contact with potential guests until they arrive in camp. This means that we are completely sales structures are fully aligned with agent relationships. Interactions with our agents dependent on our trade partners to make the sales to potential guests, and also to do a certain amount of occur regularly, in many cases on a daily basis, and we also rely on visits to agents, agent product and brand marketing. familiarisation visits to camps, as well as periodic meetings at trade shows around the world to further develop these relationships.

Of course, the strength of these trade relationships is also strongly influenced by the quality of our products and services (see above), guest safety and security (see below) and a range of other factors. Safety and security Our operations occur in remote, wild places across six southern African countries. Guests and our staff move These risks are recognised and managed by our Safety Review Board (SRB) which is appointed about these areas on foot and in vehicles, boats and aircraft, often in close proximity to wildlife. Our camps by the Risk Committee of the Board. The SRB is responsible for overall Group systems to are also unfenced and wildlife moves freely in and around them. As a result, a number of potential safety and prevent accidents or incidents and to respond to emergencies. security risks exist for both guests and staff. A comprehensive safety programme has been developed and implemented in conjunction with our insurers and underwriters. Disaster and emergency response plans have been developed and are practised. All guests are given safety briefings on arrival in camp and when boarding vehicles, boats and aircraft. Comprehensive insurance cover is maintained. Aircraft fleet The Group, through various Wilderness Air subsidiaries, presently operates a fleet of 38 aircraft whose role During the 2014 calendar year, a three-year fleet upgrade plan was developed, following upgrade is to transport our guests, staff and supplies to our camps, safely and on time. This is an essential element extensive investigations into alternatives. This foresees the purchase of up to 11 aircraft over of our service offering, especially given that their flight with Wilderness Air is usually our guests’ first and the period. The first four new Gipps GA8 Airvans entered service in Botswana during the first last engagement with Wilderness. It is of course critical that these experiences add to the guests’ enjoyment quarter of 2015 and have been greeted enthusiastically by our guests and staff. of their visit. A small number of our aircraft have become aged and this has had negative impacts on their reliability and costs of operation and also on the impression created by their appearance. Since this purchase, the business model for our flying business in Namibia has been re-evaluated in response to changes in the environment in that country and it has been agreed to re-deploy a number of aircraft. We have delayed any further aircraft purchases until the effects of these fleet changes have been bedded down and assessed.

22 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 23 Critical to stakeholders to Of interest stakeholders Media partners Other business Wilderness Holdings Limited integrated annual report 2016 Suppliers Shareholders Shareholders and investors NGOs Local Local Training and development of the staff who are responsible for delivering the product and the product for delivering responsible of the staff who are and development Training during and after they visit. See the for communicating with our clients and guests before, Internal Community chapter for further discussion of these efforts; is maintained; and quality so that product infrastructure in the physical Investments is delivered which the product by the systems and processes to improve Initiatives a number of important include These initiatives technological to clients and guests. innovations. communities These risks are recognised and managed by our Safety Review Board (SRB) Board which is appointed our Safety Review and managed by recognised These risks are systems to Group The SRB for overall is responsible the Risk Committee of the Board. by to emergencies. accidents or incidents and to respond prevent and implemented in conjunction with has been developed safety programme A comprehensive been developed plans have response and underwriters. Disaster and emergency our insurers in camp and when boarding safety briefings on arrival given All guests are practised. and are is maintained. cover insurance Comprehensive boats and aircraft. vehicles, following plan was developed, fleet upgrade a three-year During the 2014 calendar year, over up to 11 aircraft of the purchase This foresees into alternatives. investigations extensive serviceThe first four new Gipps entered GA8 Airvans in Botswana during the first the period. our guests and staff. enthusiastically by quarter been greeted of 2015 and have the business model for our flying business in Namibia has been Since this purchase, in that country and it has been agreed to changes in the environment in response re-evaluated until the further any purchases delayed have aircraft We a number of aircraft. to re-deploy and assessed. down been bedded effects of these fleet changes have Our marketing and sales functions are structured in response to these realities and our to these realities in response structured Our marketing and sales functions are with our agents Interactions fully aligned with agent relationships. are sales structures on visits to agents, agent also rely basis, and we in many cases on a daily occur regularly, the world around shows as periodic meetings at trade familiarisation visits to camps, as well to further these relationships. develop quality by the influenced is also strongly relationships of these trade Of course, the strength of and a range guest safety and security (see below) and servicesof our products (see above), other factors. Our people are always on the lookout for new areas that have the potential to support that have lookout for new areas quality always on the Our people are the potential to make a contribution to have we believe we and where safari tourism operations These opportunities planning processes influence strategic and/or development. conservation of the business. to growth relating of the most important this is one operating, already are in which we to the areas In regard sustainability departments: functions of our country-level satisfy ourselves to continuously to them that any other threats on these areas, impacting negatively not in any way are that we are areas these and finally that any opportunities identified and counteracted, are to improve below). of operations identified and implemented (see also Sustainability and and maintain quality of our products to improve adopted a number of strategies have We categories: services, into the following falling broadly • • • reinforced have we of these strategies, our performance as a result to measure in order Finally, expectations and our efforts to ascertainour guests’ matched have the extent to which we this performance. what must be done to improve The Group participated in industry-level discussions with the South African government in participated African government discussions with the South The Group in industry-level implementation from expected to result an effort were effects that to minimise the negative to be implemented, were that the regulations When it became apparent of the regulations. were all guests and also ensured aware) already were (most of whom notified all agents we advised of the requirements. public media platforms and active monitoring of social media and other In addition to careful part is to ensure markets, a core reputation in source of managing brand programmes relations this internal Having the Company. purpose and understanding across a consistency of brand review regularly we end, this efforts.building To brand external all to critical is place in platform values of the Company the prism of the vision and through on business activities and reflect team of nearly 250 brand an extensive and training engaged in creating currently and are the organisation. champions and ambassadors across How do we manage the matter? do we How Strategy Host country governments Landlords Staff Agents Stakeholders Stakeholders involved Stakeholders Guests Agent satisfaction resulting from their engagements with our Travel Shops, on behalf of their customers; Travel their engagements with our from Agent satisfaction resulting offered of their visits to our camps and the experiences their enjoyment from Guest satisfaction resulting and therein; servicesAncillary aspects of our offering, including transfer and third-party and services. products The Group, through various Wilderness Air subsidiaries, presently operates a fleet of 38 aircraft whose role whose a fleet of 38 aircraft operates Air subsidiaries, presently Wilderness various through The Group, This is an essential element is to transport our guests, staff and supplies to our camps, safely and on time. first and Wilderness Air is usually our guests’ of our service that their flight with offering, especially given enjoyment It is of course critical that these experiences add to the guests’ Wilderness. last engagement with impacts on their become aged and this has had negative have of their visit. A small number of our aircraft their appearance. by created and also on the impression and costs of operation reliability Satisfied customers, whether guests or their agents, are the most important output of our business. We also the most important are Satisfied customers, whether guests or their agents, output of our business. it is these reasons, new business. For to generate referrals business and word-of-mouth heavily on repeat rely delighted that all customers are and ensure of our products maintain the quality and relevance critical that we many facets: across This is a continual focus of the business their engagements with us. by • • • share. to gain market and services are critical if we Of course, the quality of our products is that much more a business-to-business sales model and our business employs As noted in the stakeholder analysis above, completely are This means that we in camp. until they arrive limited contact with potential guests have we partnersdependent on our trade to make the sales to potential guests, and also to do a certain amount of marketing. and brand product six southern African countries. Guests and our staff move wild places across occur in remote, Our operations to wildlife. Our camps often in close proximity boats and aircraft, on foot and in vehicles, about these areas a number of potential safety and them. As a result, in and around freely also unfenced and wildlife moves are security risks exist for both guests and staff. In October 2014, South Africa implemented onerous new regulations for visas for persons entering South for visas for persons entering South new regulations implemented onerous In October 2014, South Africa and negative confusion by was preceded This implementation involved. minors were Africa, especially where majority of our guests transit in South Africa, the large product one camp only have Although we publicity. these regulations. affected by South Africa and were is critical to long-term success. In the integrity and reputation and modern world, brand In a transparent and less cost challenging more marketing and sales activities are all promotional, brand, absence of a strong purpose and of brand opportunities. The credibility new development attempts to secure efficient, as are the represent of social and other media Virality and cannot be undermined. integrity needs to be sacrosanct proportions than unsubstantiated slurs and slights taking on larger with even to this, biggest potential threat action. remedial been possible in the past, thus necessitating time-consuming and expensive would have of the quality of the a function of guest satisfaction, are levels and therefore The quality of our operations, and density of wildlife This quality is in turn a function of the variety located. in which our camps are areas well as such as culture, of other attractions availability of habitats and scenery, populations, attractiveness to these factors, such as illegal wildlife offtakes or habitat destruction, will as ease of access. Any threats and ultimately our business. undermine the quality of our products eventually and denying us access to they occupying quality areas are Aligned to this is the question of our competitors: position(s). competitive their respective improving them or alternatively Why is it material? Status Strength of trade of trade Strength relationships Safety and security fleet Aircraft upgrade Matter South Africa visa regulations development Brand Quality of our areas Quality of products and services The Wilderness business continued Potential impact on business Risk Opportunity Strategy

Table 3: Material matters continued

Matter Status Why is it material? Stakeholders Strategy How do we manage the matter?

Sustainability of Ensuring that our operations are sustainable is a critical aspect of our business for a number of reasons: The Group has implemented a sustainability strategy based on a platform known as the 4Cs. operations • The quality of our operations, and the satisfaction of our guests, depends upon the areas in which we This strategy is discussed in detail in the next section. operate remaining pristine and unspoiled, with reasonable numbers of the animal species that would normally be expected to occur therein. Should any aspect of our operations degrade these environments, this would undermine the quality of our products and the success of our business; • As a responsible corporate citizen, it is our duty to ensure that any negative impacts resulting from our operations are minimised, and any positive impacts are maximised; • A number of our sustainability initiatives have important financial and commercial benefits through cost saving; and • This is one of the business’s most important opportunities to differentiate ourselves from our opposition. Botswana rhino By the early 1990s, poaching had wiped out Botswana’s population of black rhino and just 19 white rhino In 2001, Wilderness Safaris and the Botswana Government, with support from a number of reintroductions still survived in the country. The scarcity of white rhino, and the lack of black rhino, meant that the Okavango organisations, introduced white rhino to the Okavango Delta and this was followed in 2003 ecosystem was lacking essential and charismatic components which would add immeasurably to the by the first reintroductions of black rhino. This was successful but the number of black rhino reputation of the destination if they could be successfully reintroduced. introduced was too small to establish a viable founder population.

During 2014 and 2015, the Wilderness Group, with support from many donors, assisted the Botswana Government, in a joint initiative with the governments of South Africa and Zimbabwe and the private Malilangwe Trust, to move a founder population of black rhino into the Okavango. This population is genetically viable and the Group continues to support the Government in its efforts to monitor and protect these animals. See pages 88 and 89 in Conservation section for further details. Zimbabwe Since the early 2000s, the Zimbabwe Government has been implementing an indigenisation programme The Wilderness camp-operating subsidiary in Zimbabwe, Wilderness Camps of Zimbabwe (Pvt) indigenisation intended to widen the participation of Zimbabweans in business and the economy in that country. Regulations Limited, has had 50% indigenous ownership since inception. In 2011, the Group entered into regulations have been promulgated. This process has been controversial and remains confusing to understand, but the an agreement with the government to indigenise 30% of the remaining business in the country. fact remains that the regulations exist, as do possible penalties for non-compliance. Our partners to achieve this have been identified and agreement reached on the mechanisms to be used. Implementation has been delayed by the need to secure additional approvals and this process continues. Share price The Company’s securities are listed on the Botswana Stock Exchange and JSE Limited. Owing to the very small The matter receives ongoing attention from the Board in its efforts to increase free-float and free-float, levels of trade in securities are restricted and the share price has in the past been subject to wild encourage growth in the share price. fluctuations, at least on the JSE. Of course, this is of concern to shareholders and potential investors, as well as to participants in the Wilderness Group 2011 Staff Share Scheme. Approach by Wine On 30 June 2015, the Company received a letter from its major shareholder, Wine Investments Limited, In October 2015, the Board appointed a sub-committee of independent directors to deal with Investments indicating that Wine had increased its shareholding in the Company to the point where it had taken its all issues and questions and to propose to the Board regarding the matter. On 9 February shareholding above the 35% threshold at which a mandatory offer to all other shareholders was required. 2016, Wine advised the Board that it was impractical for them to proceed with the offer. The This letter and supporting documents were couched in terms of an approach to the Company but at the same Botswana Stock Exchange has confirmed that a mandatory offer to all shareholders is not time indicating a mandatory offer was required. required in the wake of this decision by Wine not to proceed. Withdrawal from In 2010, the Group entered into a contract with the Congo Conservation Company to develop and manage two Our management and marketing contract with the Congo Conservation Company came to an Congo camps in the Odzala-Kokoua National Park in the Republic of Congo. These camps offer visitor experiences in end early in 2015. the rainforest based on viewing of lowland gorillas. Wilderness was not invested in the camps, but managed the process of developing them, and thereafter was responsible for their marketing and management. During 2013, the initial term of the management contract came to an end and the Group was invited to invest in the development going forward. Taking into consideration the difficulties encountered in managing a successful ecotourism operation in such remote and inhospitable locations, the Group reluctantly declined to do so. Termination The Group has been contracted to market and manage the network of three safari camps in the Ongava Game The Ongava management and marketing contract was terminated at the end of of the Ongava Reserve adjoining Etosha National Park in Namibia since 1998. Over a period leading up to early 2015, the October 2015. management owners of the Reserve decided that they wished to assume these responsibilities themselves. contract

24 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 25 Critical to stakeholders to Of interest stakeholders Media partners Other business Wilderness Holdings Limited integrated annual report 2016 Suppliers Shareholders Shareholders and investors NGOs Local Local communities The Ongava management and marketing contract was terminated at the end of management and marketing contract The Ongava October 2015. The matter receives ongoing attention from the Board in its efforts and the Board free-float ongoing attention from to increase The matter receives price. in the share growth encourage to deal with a sub-committee of independent directors appointed In October 2015, the Board On 9 February the matter. regarding to the Board all issues and questions and to propose The with the offer. for them to proceed that it was impractical advised the Board Wine 2016, is not Exchangemandatory offer to all shareholders has confirmed that a Botswana Stock not to proceed. Wine in the wake of this decision by required Company came to an with the Congo Conservation Our management and marketing contract end early in 2015. The Wilderness camp-operating subsidiary in Zimbabwe, Wilderness Camps of Zimbabwe (Pvt) Camps of Zimbabwe Wilderness subsidiary in Zimbabwe, camp-operating Wilderness The into entered since inception. In 2011, the Group Limited, has had 50% indigenous ownership business in the country. to indigenise 30% of the remaining with the government an agreement on the mechanisms reached been identified and agreement Our partners this have to achieve and additional approvals the need to secure by to be used. Implementation has been delayed continues. this process The Group has implemented a sustainability strategy based on a platform known as the 4Cs. based on a platform known a sustainability strategy has implemented The Group is discussed in detail in the next section. This strategy with support a number of from Safaris and the Botswana Government, Wilderness In 2001, in 2003 Delta and this was followed white rhino to the Okavango introduced organisations, number of black rhino This was successful but the of black rhino. reintroductions the first by a viable founder population. was too small to establish introduced with support many donors, assisted from Group, Wilderness During 2014 and 2015, the of South Africa and with the governments in a joint initiative the Botswana Government, black rhino a founder population of to move Trust, Malilangwe the private and Zimbabwe continues to support This population is genetically viable and the Group into the Okavango. in its efforts these animals. See pages 88 and 89 in to monitor and protect the Government section for furtherConservation details. How do we manage the matter? do we How Strategy Host country governments Landlords Staff Agents Stakeholders Stakeholders involved Stakeholders Guests The quality of our operations, and the satisfaction of our guests, depends upon the areas in which we in which we guests, depends upon the areas and the satisfaction of our The quality of our operations, of the animal species that would numbers with reasonable pristine and unspoiled, remaining operate these environments, degrade of our operations Should any aspect therein. normally be expected to occur success of our business; and the quality of our products this would undermine the our from impacts resulting that any negative ensure it is our duty to citizen, corporate As a responsible maximised; impacts are positive minimised, and any are operations important cost have benefits through financial and commercial A number of our sustainability initiatives saving; and most important our opposition. from opportunities ourselves to differentiate This is one of the business’s Since the early 2000s, the Zimbabwe Government has been implementing an indigenisation programme an indigenisation programme has been implementing Government Since the early 2000s, the Zimbabwe Regulations intended to widen the participation in business and the economy in that country. of Zimbabweans confusing to understand, but the and remains has been controversial This process been promulgated. have exist, as do possible penalties for non-compliance. that the regulations fact remains Exchange and JSE Botswana Stock listed on the securities are small Limited. Owing to the very The Company’s price has in the past been subject to wild restricted and the share in securities are of trade levels free-float, fluctuations, at least on the well as JSE. and potential investors, Of course, this is of concern to shareholders Scheme. Share 2011 Staff Group as to participantsWilderness in the Limited, Investments Wine its major shareholder, a letter from On 30 June 2015, the Company received it had taken its where in the Company to the point its shareholding had increased Wine indicating that was required. at which a mandatory offer to all other shareholders the 35% threshold above shareholding same to the Company but at the This letter and supporting couched in terms of an approach documents were time indicating a mandatory offer was required. Ensuring that our operations are sustainable is a critical aspect of our business for a number of reasons: sustainable is a critical aspect of our business are Ensuring that our operations • • • • population of black rhino and just 19 white rhino By the early 1990s, poaching had wiped out Botswana’s meant that the Okavango of white rhino, and the lack of black rhino, The scarcity still survived in the country. to the components which would add immeasurably ecosystem was lacking essential and charismatic they could be successfully reintroduced. of the destination if reputation In 2010, the Group entered into a contract with the Congo Conservation Company to develop and manage two and manage Company to develop with the Congo Conservation into a contract entered In 2010, the Group experiences in These camps offer visitor of Congo. in the Republic Park National camps in the Odzala-Kokoua in the camps, but managed was not invested Wilderness gorillas. based on viewing of lowland the rainforest and management. During for their marketing was responsible them, and thereafter of developing the process in the was invited to invest came to an end and the Group 2013, the initial term of the management contract a successful in managing the difficulties encountered into consideration Taking going forward. development declined to do so. reluctantly the Group and inhospitable locations, in such remote ecotourism operation Game safari camps in the Ongava to market and manage the network of three has been contracted The Group 2015, the a period leading up to early in Namibia since 1998. Over adjoining Etosha National Park Reserve themselves. wished to assume these responsibilities decided that they of the Reserve owners Why is it material? Status Withdrawal from from Withdrawal Congo Termination of the Ongava management contract Matter Sustainability of operations Botswana rhino reintroductions Zimbabwe indigenisation regulations price Share Wine by Approach Investments The Wilderness business continued

The 4Cs Managing and implementing the 4Cs Day-to-day implementation of the Group’s sustainability strategies is the The 4Cs is the platform upon which Our structure for managing and responsibility of the country Managing our sustainability initiatives are based. implementing the 4Cs is given in Directors and is carried out by the This concept is adopted from The Long the diagram alongside. The Group’s operational staff in the camps and Run Initiative ( www.thelongrun.com) sustainability policies and strategies other operational units. These staff are and is predicated on the belief that a are directed and overseen by the responsible for the ongoing monitoring business will not be truly sustainable Sustainability Committee of the Board and measurement of the various unless it specifically addresses issues of Directors. The Chief Sustainability sustainability indicators. Their activities arising under the dimensions of Officer (CSO) is responsible to the Chief are overseen, directed and coordinated Commerce, Community, Culture and Executive Officer (CEO) for development by a sustainability officer in each Conservation (the 4Cs). We believe that and execution of these policies and country. At the same time, ‘thematic’ this framework is the most appropriate strategies. The CSO is a member of oversight is given by a ‘C Coordinator’ sustainability model for our industry and the Board. The CSO is assisted in the at Group level. These coordinators accordingly our Vision and Values are all development and implementation of provide advice to the operational level aligned to these Cs. strategy by a Sustainability Executive Committee. structures and consolidate the activities at Group level.

Our sustainability objectives The Wilderness Group is committed to ensuring the sustainability of our operations. This commitment is part of our DNA and reflects a number of aims and objectives, the most important of which are:

Commerce Community Culture Conservation

COMMUNITIES ECOSYSTEMS  The health of ecosystems in modern Africa is to a large extent dependent on the goodwill of STAFF surrounding rural communities and to this end our fair and equitable engagement of these Firstly, this is enlightened partners is a critical component of the sustainability of both protected areas and our business. Many of our staff are self-interest. Our business themselves personally depends on the health committed to biodiversity of the ecosystems and and responsible living, species that are the and our equivalent attractions for our guests. value systems enable Any negative impacts on GUESTS ENERGY COMMITMENT us to attract and retain the environment resulting the brightest and the  In this day of discerning Many of our sustainability As a responsible corporate from our operations best people. and responsible travellers, initiatives have important citizen, it is our duty to would reduce their it is important to efficiency by-products and ensure that any negative attractiveness and thus We endeavour to create demonstrate the sincerity thus result in improved impacts resulting from our the competitiveness and maintain a culture of our sustainability business performance. operations are minimised, of our business. within our organisation commitments, and the For example and as and any positive impacts Conversely, improvements that values and promotes actions arising therefrom. further discussed in this are maximised. to biodiversity and sustainability, not only If this can be achieved, we report, our investments in species will increase within our business, but will differentiate ourselves renewable energy supplies the attractiveness of in all other aspects of from our competitors and result in significant our tourism operations day-to-day life. enhance our reputation reductions in diesel and thus the success and this will result in us consumption and therefore of the business. gaining market share. in our operating costs.

Figure 20: Our sustainability objectives

26 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 27 Manager Conservation MD Collection Conservation (EMSBiodiversity) & Hoanib Skeleton Coast Namibia Camp, Set in one of the most ecosystems in fragile the world, this camp has been built with minimal impact on the environment. MD Manager Manager & Culture Community South Africa Conservation (EMSBiodiversity) & Culture Committee Sustainability Xigera Camp, Botswana Camp, Xigera Community is all about the people at the heart of our business. Wilderness Holdings Limited integrated annual report 2016 Manager Manager & Culture Community MD Zambezi Conservation (EMSBiodiversity) & Chief Officer Board of Board Directors Executive Executive Community Manager Manager & Culture Community MD Namibia Conservation (EMSBiodiversity) & Manager Manager & Culture Commerce Community Conservation MD Botswana (EMSBiodiversity) & Chief Officer Sustainability structure (4Cs) management Coordinators Sustainability Figure 21: Sustainability (4Cs) management structure Figure Board of Directors

Parks Tafa (49) natural history of the country. He became and wildlife conservation interface. He a professional guide, working throughout joined Wilderness as CFO early in 2010 Non-executive Director the country for various safari companies, and is now Commercial Director and Chief Chairman of the Board before settling in Victoria Falls in 1984. Sustainability Officer. Appointed: 8 April 2010 Keith has been in the safari industry Qualifications: LLB, University of Botswana since 1980, working throughout southern Directorships: Wilderness Holdings Africa. Keith has been involved with the John Hunt (61) Limited, Collins Newman & Co (Partner) Wilderness Group since 1993. Independent non-executive Director Parks is currently the Managing Partner Member of the Social, Ethics and of Collins Newman & Co Law Firm and the Sustainability Committee. Appointed former non-executive Chairman of Stanbic Ami Azoulay (42) a member of the Remuneration and Bank Limited and University of Botswana. Executive Director Nomination Committee with effect from He is an Attorney, Conveyancer and Notary Chief Financial Officer 20 May 2015 Public of the High Court of Botswana since Appointed: 24 January 2014 Appointed: 8 April 2010 November 1991. Qualifications: Chartered Accountant Directorships: Wilderness Holdings Limited (South Africa), Higher Diploma in John co-founded the advertising group Taxation (UJ) Hunt Lascaris in 1983. In 1996, a majority Michael Tollman (54) Directorships: Wilderness Holdings Limited, share was sold to TBWA and he became Independent non-executive Director Wilderness Holdings subsidiaries Co-Chairman. In 2003, John moved to New Deputy Chairman, and member of the Audit Ami qualified as a Chartered Accountant York to assume the role of Worldwide and Risk Committees. Appointed Chairman in 2001 and subsequently completed his Creative Director for TBWA. In 2006 of the Remuneration and Nomination Higher Diploma in Advanced Taxation. he returned to South Africa where he Committee with effect from 20 May 2015 He was previously a partner at an audit continues in the same capacity. John is an Appointed: 8 April 2010 firm and joined the Group in 2008. He Executive Committee member of TBWA Qualifications: BCom (Hons), Chartered brings both technical and tourism-related Worldwide. Accountant (South Africa) experience to the Board. Directorships: Wilderness Holdings Roux Marnitz (71) Limited, Cullinan Holdings, Red Carnations, The Travel Corporation Limited, Contiki Derek de la Harpe (56) Independent non-executive Director Lead Independent Director and Chairman Holidays Limited, Trafalgar Tours Limited, Executive Director of the Safety Review Board. Member of the Cullinan Holdings Limited and various Commercial Director and Chief Risk, and Remuneration and Nomination subsidiaries of the above Sustainability Officer; and member of the Investment and Social, Ethics and Committees Michael was appointed to the Board of Sustainability Committees 8 April 2010 Wilderness Safaris Investment and Finance Appointed: Proprietary Limited in 2005, of Wilderness Appointed: 8 April 2010 Qualifications: BSc (Eng), MBA, BProc Holdings Limited on its listing on the Qualifications: Bachelor of Accounting Directorships: Wilderness Holdings Botswana Stock Exchange and appointed Science (UNISA), Chartered Accountant Limited, Namibia: Southern Energy Deputy Chairman of Wilderness Holdings (Zimbabwe) Company Proprietary Limited, SEC Aviation in April 2013. He has extensive experience Directorships: Wilderness Holdings Products Proprietary Limited, Aviation in the travel and leisure industry, in the Limited, Wilderness Holdings subsidiaries Centre Proprietary Limited areas of finance, the travel and leisure Derek is a Chartered Accountant Roux studied engineering at the University sector, mergers and acquisitions. He is (Zimbabwe) with 33 years’ experience in of Pretoria where he graduated in 1967. Chief Executive Officer of Cullinan Holdings southern and eastern Africa. He spent In 1970, he was awarded an MBA by the Limited, the leading travel and leisure 18 years with the then Price Waterhouse, same university and obtained the BProc company. the last eight as the partner in charge degree from UNISA in 1976. He also holds of the firm’s practice specialising in an Airline Transport Pilot’s Licence. Roux tourism and environmental consulting. is the former chairman of the JSE-listed Keith Vincent (53) He then spent eight years as the CEO of IT group, Comparex Holdings Limited, Executive Director The Malilangwe Trust, a Zimbabwean former Chairman of the Execujet Aviation Chief Executive Officer and member of the NGO working in wildlife conservation Group, former Member of the Council of Risk Committee and rural development, and with a high the University of Pretoria and is presently a Appointed: 18 August 2005 profile tourism operation. He spent four director of private investment companies in Directorships: Wilderness Holdings years working as a freelance management Botswana and Namibia. Limited, Wilderness Holdings subsidiaries consultant in southern and eastern Africa, Keith was educated in Zimbabwe, where south-east Asia and central America, he developed a love for the outdoors and specialising in the tourism development

28 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 29 (53) cross border transactions. Christophe transactions. border cross started with as a lawyer his career he has been seconded Linklaters where to the legal department major French of a bank. investment institution and to a major Jochen Zeitz Jochen Zeitz Director Independent non-executive Ethics andChairman of the Social, and member ofSustainability Committee, Committee the Investment Appointed: 8 April 2010 in Business Qualifications: Degree Administration Limited Holdings Wilderness Directorships: USA, Harley-Davidson Kering France, of Kering Director is currently Jochen Zeitz sustainable and Chairman of the board’s and Co-Founder committee development after having Team The B and Co-Chair of been the CEO of the Sport & Lifestyle division and Chief Sustainability Officer of served to this, Zeitz since 2010. Prior Kering as Chairman and CEO at PUMA.18 years in 1993, Zeitz CEO Upon becoming PUMA’s nearing brand an undesired turned it from bankruptcy into one of the top three He in the sportingbrands goods industry. to a new paradigm in contributing believes environmental social and of corporate In 2008, he founded the Zeitz sustainability. Ecosphere for Intercultural Foundation Safety to support sustainable solutions communitythat balance conservation, and commerce. culture, development, of has been a member of the Board Zeitz of Harley-Davidson since 2007 Directors and has also served as the Chair of Harley- sustainability committee since Davidson’s its inception in 2011. Wilderness Holdings Limited integrated annual report 2016 (37) (52) Gavin Tollman Tollman Gavin Christophe Vinsonneau Vinsonneau Christophe Director Non-executive Committee Member of the Investment 2015 Appointed: 1 November Master in Bar, Qualifications: Paris École École from Management Grande (ESCP- de Paris de Commerce Supérieure Master in financial security and Europe), XI in Paris Paris University market law from Holdings Limited Wilderness Directorships: law firmChristophe is partner at the French he where Maillot Brochier Villey Darrois advises listed and non-listed entities, state equity funds in as private entities as well connection with their M&A domestic and Non-executive Director Non-executive Committee Member of the Investment Appointed: 8 April 2010 The American Qualifications: BSc Finance, DC Washington University, Holdings Wilderness Directorships: Limited, Group Travel Limited, Insight Limited, Contiki Busabout Operations Limited, Grand International Tours Trafalgar Limited, Operations European Wine International Limited, Tours Estate Real Tracon Limited, Investments Limited, Investments TravCorp Limited, Kings AAT Limited, Group Travel TTC International Limited, Uniworld Tours International Holdings Limited, Nevis: Holdings Limited, International Brendan Cullinan Holdings Limited, and various subsidiaries of the above executive Gavin has had a far-reaching This has industry. in the travel career included managing both hotel companies received have which and tour operators, and recognition. industry awards various Tours, Trafalgar of he is the CEO Currently escorted largest tours operator, the world’s At the on six continents. with product industry he has developed company, and product leading marketing, e-strategy He is also a Senior initiatives. delivery Corporation, Travel the of Executive southern for the company’s responsible as the Managing Africa assets as well Travel Leading World’s of Director their he oversees Companies Limited where sell division. United Kingdom direct

(62) (38) MA (Reading) International Relations, International Relations, MA (Reading) Diploma Finance Limited Holdings Wilderness Directorships: (Hons) in Economic a BA received Marcus of East the University from Development in degree Anglia in the UK, and a Master’s the University from International Relations UK. on toof Reading, then went Marcus development join De Beers on a graduate In 2005, he was appointed programme. Assistant to the CEO of the the Executive After a short secondmentDe Beers Group. thenwith NM in 2007, Marcus Rothschild he worked to Botswana where moved Manager for for Debswana as the Group He has recently Business Development. been appointed as the Head of Sales for Company Botswana, Trading the Diamond De Beers between a 50:50 joint venture Marcus and the Botswana Government. of also serves on the Board currently of the Lady Khama Charitable Trustees Trust. Marcus ter Haar Marcus Director Independent non-executive Committee and Chairman of the Investment member of the Audit Committee Appointed: 8 April 2010 Qualifications: BA (Hons) Development of East Anglia, University Studies, Malcolm McCulloch Malcolm McCulloch Director Independent non-executive Chairman of the Risk Committee, of the Auditand appointed Chairman 20 May 2015. Committee with effect from and Investment, Appointed member of the and Nomination Committees Remuneration 2016 24 February with effect from Appointed: 18 August 2005 Qualifications: BCom Chartered (Hons), Accountant (South Africa) Holdings Wilderness Directorships: Holdings subsidiaries Wilderness Limited, Wilderness in the and Children Malcolm is a Chartered Accountant who Town, of Cape studied at the University and subsequently completed an Advanced Wharton, at the Management Programme USA. He has of Pennsylvania, University Group Wilderness with the been involved since 1992. Chairman’s letter

Parks Tafa, Chairman

The year past was a meaningful one that saw the beginnings of the eventual emergence of the African ecotourism industry from the after effects of west Africa’s Ebola pandemic, and a steady generating of momentum within Wilderness Holdings that included significant progress in both internal brand and strategic clarity and associated growth into new territories. We are well poised and excitedly expectant for the year ahead which we believe will be a landmark one for our organisation… one that entrenches our purpose and defines our future direction.

Our vision is to conserve and restore Africa’s wilderness and wildlife by creating life-changing journeys and inspiring positive action.

The new articulation of our vision, within our industry. It is perhaps this None of these relocations would be while undoubtedly lofty, really gets year’s recognition that is most valued by possible without a strong and healthy at the heart of why we do what we the Company and its staff because of the ecotourism business and while the do and how we do it, and serves to critical nature of the work done by the specifics are covered in the CEO report strongly underline the purpose-driven Botswana Rhino Reintroduction Project. on the following pages, it is beholden on nature of the organisation. It is a vision me to emphasise just how important the that was in no small way recognised Of course, winning awards is not why Commerce C is in our 4Cs sustainability we do what we do. The reward is in and rewarded by the World Travel framework. In this regard, I am proud the conservation and community and Tourism Council in their annual of the financial performance of the achievements themselves. Rhino Tourism for Tomorrow Awards on 7 April business in the 2016 financial year. conservation is a serious commitment 2016. At a gala event in Dallas, Texas, Despite a sometimes challenging for us, and we are proud to have our Botswana Rhino Reintroduction environment, the occupancy and yield Project won the Environment category successfully completed the largest ever figures were very satisfying and allowed for no fewer than 15 years’ work on cross-border translocation of Critically us the latitude to focus on a number rhino relocation and conservation in Endangered black rhino, with the of non-commercial initiatives that will Botswana’s Okavango Delta. support and cooperation of a number of stand us in good stead into the future. governments and NGOs. In the last 18 years, Wilderness Safaris A large part of this business resilience has won a Tourism for Tomorrow Award We believe that our rhino programme is due to the multi-tier accommodation – the pre-eminent honour in our industry represents long-term sustainable and vertical integration strategy long – no less than three times (1999; 2005; conservation and results in the protection held by the group; something that 2016), and been a finalist a further of Africa’s spectacular biodiversity. buffers the organisation against varying three times (2007; 2010; 2012) – an We have further relocations planned economic and socio-political impacts in unprecedented level of recognition for 2016. a wide range of the globe’s geography.

30 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 31 into Kenya and Rwanda was important. and Rwanda into Kenya to move continue Both developments delighted are and we forward rapidly Camp the Governors’ to welcome Rwanda) and and Collection (Kenya Thousand Hills Expeditions (Rwanda) Holdings fold. Both Wilderness into the our commitment to the entities share to work together excited are 4Cs and we further to even extend the positive of ecotourism into impacts of our brand these two iconic wildlife countries. In amongst all this positivity and it is important to opportunity, continue to face that we acknowledge challenges. Delays and uncertainty in the issuing of key leases in Botswana impacted both our earnings there, have in the country. and our ability to reinvest across and elsewhere Competition here, southern and east Africa, also continues something that will become to grow, as the Ebola apparent more even influential negative and other hangover continue to fade factors on African travel optimism. more by and be replaced these challenges and embraced We’ve that the increased strongly believe made us a competition has already attractive better business and a more Moreover, partner travel. to the trade shown the loyalty humbled by are we camps and safari to us and our various are We our guests. experiences by for this and certainlygrateful take never the believe Instead we it for granted. outcomes of our ecotourism positive and communitymodel on conservation of this in essence the result are partnership. that had its challenges, I want In a year thanks to all the my sincere to express who members of my formidable Board support,continue to offer invaluable wisdom. wide experience and profound and his Vincent too, to Keith Thank you as to senior management team, as well every staff across Wilderness the entire present. are country in which we ya isago e e atlegileng. Keleletso future. a prosperous you Wishing Wilderness Holdings Limited integrated annual report 2016 for the year ended 28 February 2015 ended 28 February for the year INTEGRATED ANNUAL REPORT ANNUAL INTEGRATED Printed on sustainably sourced paper. Please recycle. paper. on sustainably sourced Printed Thank you We would like to thank the many people and organisations who supported us during the year and made our enthusiastic operations support possible. We have from received a host wide governments and range their of respective non-government organisations. agencies, trade And of course the local business and would not communities begin other and world. the over all from operations our visit who guests the without partners,function to business the of heart the at are staff our importantly, most perhaps and Finally, and we would like to acknowledge and thank them for the pivotal role they that have played. We are proud of what we have achieved during and the contributions that the we have made to conservation and to the societies year This and has economies been in a which joint operate. we effort and thankwe who has joined us on this journey. everyone www.wilderness-group.com our former official position rather than a our former official position reworking. Engagement A six-month Internal Brand (IBE) has subsequently followed process and has laid the initial interrogations for an embedding of the groundwork Nearly the Group. across this culture attended brand champions’ 300 ‘brand philosophy Wilderness and literacy all the operational workshops across with charged now and are regions the message to their peers. spreading is that it is in this process The power and is outward the core working from not – as a former CEO often used to say Rather idea’. boardroom grand – ‘some expression it is an internally generated do do what we why we are, of who we and our do it. Our culture we and how same. one and the are strategy in the The timing of this initiative context of our expansion plans broader

Awards Integrated Report won Corporate Social Responsibility Award in the PricewaterhouseCoopers(PWC) Annual Reporting Awards 2015 WildernessSafaris Hoanib Skeleton Coast Camp awarded Five Flowers by Eco Awards Namibia Wilderness Holdings Integrated Report received the Merit Award in the Regional Companies category, co-hosted by Chartered Secretaries Southern Africa and the Johannesburg Stock Exchange Wilderness Holdings Children in the Wilderness Runner up in the United Nations World Tourism Organisation Awards Wilderness Safaris Linkwasha Camp listed in the 2016 Tatler Travel Guide as one of the ‘World’s 101 BestHotels’ Wilderness Safaris Vumbura Plains Camp wins best ‘Boutique Bush Home’ in the Style Junkies Awards 2015 November 2015 November 2015 December 2015 December 2015 December 2015 January 2016 Perhaps the most far-reaching of the the most far-reaching Perhaps alluded to initiatives non-commercial The to Company culture. relates above eats strategy ‘culture phrase well-known is certainlyfor breakfast’, a powerful maxim that holds plenty of water in One cannot hope our circumstances. to Company contrary to set a strategy and expect success. Instead we culture our nearly been lucky enough over have history that the internal culture 34-year has and philosophy of the organisation been one that has helped both entrench our vision and formulate our strategy. cannot take forThis is a luxury that we and one that since Septembergranted, amount of spent a large have 2015 we and usingtime harnessing, interrogating brand to formulate our newly restated platform; our purpose, vision, strategy, presented The details are and values. on pages 4 and 5 in this report and are of a simplification and evolution really Chief Executive Officer’s letter

Keith Vincent, Chief Executive Officer

Despite a challenging trading environment influenced by the ‘hangover’ from the Ebola outbreak of 2014, I am pleased with the Group’s overall results and encouraged by the positive outlook for 2017. I am proud of the tenacity and resilience of our staff who have embraced the various challenges faced during the year with a renewed energy and focus on our 4Cs sustainability ethos which continues to form the cornerstone of why we do what we do.

In order to maximise returns in this allows us to extend our ecotourism extended safari circuits in the north economic environment, we made the footprint into east Africa. Not only do the west of the country, thereby helping to difficult but necessary decision to exit Governors’ brand and the Grammaticas increase occupancy in camps like Desert several management and marketing family share our values and vision for Rhino Camp and Serra Cafema. contracts for lodges in which we held no the role ecotourism can play in African To streamline our Namibian operations, equity in order to focus our resources conservation, but our two companies we exited our marketing and and capital in owned assets. We also operate in complementary geographic management agreement with Ongava in launched a luxurious new lodge in areas, do not compete and can enhance October 2015 and a smooth handover Zimbabwe and have made progress with each other’s businesses, thus creating ensured minimal disruptions to our trade our launch plans into Rwanda and equity a mutually-beneficial partnership and partner bookings. share of the Governors’ Camp Collection. opportunities for growth. We are confident that the Company is In Botswana, we introduced new guided well poised to experience an exciting and The impressive International Victoria Explorations and successfully launched successful year ahead and thank all our Falls Airport is enticing new visitors Gomoti Camp as part of the Explorations shareholders, local governments and to the Zambezi region; we are well and series business. In time, this camp partners for their continued support. positioned to welcome this potential will form part of a more affordable ‘bush growth. Linkwasha Camp (which opened camp circuit’ to balance our exposure to in Hwange in May 2015) has received an increasingly price-sensitive market. Performance overview numerous international accolades, We continued investing in ongoing We have experienced a challenging and including being listed in the prestigious camp maintenance and refurbishments, exciting year; one of reflection, change Condé Nast Traveler 2016 Hot List. In vehicle replacements and the purchase and growth. After 33 years of operation, order to focus our resources and capital of aircraft parts, as well as in solar we felt that it was important to take in owned assets, we exited from our energy, with Vumbura Plains Camp stock and recommit to our core vision marketing and management agreement now 100% solar powered. A total of and commitment to building sustainable with The River Club, Zambia in March ten Wilderness Safaris camps are now conservation economies in Africa. As 2015, but continue to support it through 100% solar powered, highlighting our such, we are pleased with the progress our tour operating business. commitment to minimise our carbon we have made with our expansion plans footprint. We are proud to have won the into Rwanda and the positive reception The success of Hoanib Skeleton Coast World Travel & Tourism Council 2016 received at the We Are Africa and Indaba Camp (opened in Namibia, August 2014) Tourism for Tomorrow Award in the travel trade shows in May 2016. has been unprecedented, also earning Environment category for our pioneering significant media exposure and awards Botswana Rhino Project, which saw the The conclusion of our equity agreement in key source markets. It is an effective largest ever cross-border translocation of with the Governors’ Camp Collection catchment camp, used as a hub for black rhino take place last year.

32 Wilderness Holdings Limited integrated annual report 2016 About Wilderness Sustainability report Corporate governance Annual financial statements Shareholders’ information 33 closely with our government partners closely with our government of the leases to the renewal with regard and Xigera for Mombo, Little Mombo we will confident that camps, and are plans in goodbe able to announce clear commence asstanding. Building will in hand. soon as the leases are is reflecting Our existing business occupancies, forward promising further to encourage growth however, and to assist our partners in securing our revised have we business, future demand- to introduce structure rates simplified These new, based pricing. for the first have, nightly camp rates for a 24-month time, been released – and include significant period future in selected camps, immediate reductions seasons. “Early Bird” plus standardised occasionally deals will also be offered long-lead bookings and to encourage our guests for committing early reward this believe We in the buying cycle. visibility for the long-term will create certainty our to Company and provide partners, complexity. as reducing as well The first of these has been launched and of to seeing the results look forward we this initiative. our biggest focus for FY2017 Finally, of an internal brand is the roll-out campaign to instil the awareness and vision values core Company’s that our 2 213 staff and ensure across aligned behind the collectively are we against our promise to deliver brand We that our journeys change lives. that our people always believed have run Brand our best asset and have are all regions Champion workshops across of the business to ensure and strata of the Company is now that ten percent the campaign forward. to drive trained The second phase will focus on “The using the concept Wilderness”; Why of sell buy “what” you that people don’t feel it is time to We “why”. but rather explain this to our staff and the world by – to Believe” highlighting 14 “Reasons that innovations Wilderness’ examples of our vision. by been driven have our hope to inspire we In this way, partnerspeople, our guests, trade and us in ultimately our competition to follow in Africa. making a difference Wilderness Holdings Limited integrated annual report 2016 with over 4 500 indigenous trees 4 500 indigenous trees with over planted as part already of an aggressive All is on track programme. reforestation in peak season to open Bisate Lodge to using look forward 2017 and we the lodge as a lynchpin for further in Rwanda. of a circuit development committed to sustainable, Remaining authentic ecotourism in Zimbabwe, of delighted with the rebuild are we Camp in Mana Pools Ruckomechi to and look forward National Park a smaller launching Little Ruckomechi, in mid-August 2016. camp, three-tented the authentic and Both camps retain nostalgic safari feel that is synonymous with Ruckomechi. felt by of the frustrations aware are We of rebuild the the industry regarding assure Mombo Camp in Botswana; we our partners continue to work that we Awards Hoanib Skeleton Coast Camp won a Silver Award in the African Responsible Tourism Awards Wilderness Safaris Won the National Energy Globe Award for Botswana for its innovative solar conservationprogramme Wilderness Safaris Botswana Rhino Project won the Conserve Africa category atthe We Are Africa Innovation Awards Wilderness Safaris Wilderness Safaris Won the PURE Award for Conservation Wilderness Safaris Mombo and Little Mombo received Condé Nast Traveler Readers’ Choice Award WildernessSafaris Wilderness Safaris Botswana received Presidential Order of Meritorious Service Award April 2015 May 2015 June 2015 September 2015 October 2015 November 2015 Future prospects Future to effect change, but to do well have We that, also demonstrated have we can also we making a difference, by – this for our shareholders value create is vital for the sustainability of our growth. as for future business as well about the excited are As such, we made in Rwanda, have we progress We have continued to pioneer have We sharing sustainable ecotourism by with our methods and innovations tourism operators other responsible The creation, good. for the greater implementation and success of our GEMS Minimum Environmental (Group document and annual Standards) assessments is an industry first and to report have proud that we are we to achieve target our four-year exceeded 80% compliance with the GEMS 2016. by Sustainability report

34 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

36 Commerce Sustainability report Sustainability 42 Community

– Internal community

– External community

68 Culture

76 Conservation

– Biodiversity

– Environmental management systems Corporate governance Corporate Annual financial statements financial Annual Shareholders’ information Shareholders’

Shumba Camp, Zambia Lechwe on the teeming Busanga Plains in front of the camp.

Wilderness Holdings Limited integrated annual report 2016 35 Serra Cafema Camp, Namibia Situated in the extreme north-west of Namibia, this is one of the most remote camps in southern Africa.

36 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Sustainability report Sustainability

Commerce governance Corporate

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 statements financial Annual token, even if there is a viable business model we cannot justify an investment that does not address the other three Cs. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 37 Commerce

Table 4: Value added statement (for the year ended 29 February 2016)

2015 2016 P’000 % P’000 %

Revenue 944 586 935 087 Cost of goods and services (442 838) (402 494) Wealth created by trading operations 501 748 532 593 Finance income 2 501 1 460 Other gains 7 056 374 Total wealth created 511 305 100.0 534 427 100.0

Distributed as follows: Employees Benefits and remuneration 309 952 60.6 307 191 57.5 Governments Current taxation 32 463 6.3 46 241 8.6 Providers of capital 30 208 5.9 40 530 7.6 Finance charges 7 108 1.4 5 748 1.1 Dividends to shareholders 23 100 4.5 34 782 6.5 Retained for growth 138 682 27.2 140 465 26.3 Depreciation and amortisation 55 896 10.9 64 736 12.1 Impairments 10 175 2.0 (796) (0.1) Profit for the year attributable to shareholders of the Company 72 611 14.3 76 525 14.3

511 305 100.0 534 427 100.0

Key performance indicators (KPIs)

Down 1% Up 10% Up 11% Revenue: Decreased from P945 million EBITDA: Increased from P182 million to Profit before tax: Increased to to P935 million. P199 million. P120 million from P109 million in the prior year.

Down 8% Up 3% Down 5% Occupancy (owned camps): Decreased to Cash generated by operations: Increased HEPS: Decreased from 33 thebe to 58% from 63% (restated). from P131 million to P135 million. 31 thebe.

38 Wilderness Holdings Limited integrated annual report 2016 Ultimately, commerce deals with Wilderness’ ecotourism offerings and products, and is perhaps the most critical About Wilderness About element to sustainability in the modern world. By operating a successful business, we are able to conserve wildlife, empower local communities and protect Africa’s wilderness areas for future generations to enjoy.

Linkwasha Camp, Zimbabwe

Our new camp in the best location in Hwange National Park opened in May 2015. report Sustainability

Financial review result, available bednights increased by growth in available bednights. There 3% from 233 108 (restated) to 240 748. was a 59% decrease in the annual The average rate of exchange of the incentive bonus and share scheme from Botswana Pula against the US Dollar Demand was weak during the first half depreciated by 15% from P9.08 to P29 million to P12 million. Excluding because of the Ebola outbreak and the P10.42, whilst the Rand depreciated this, operating expenses would have strength of the US Dollar against other against the Pula by 7% from R1.21 increased by 6%. The 7% weakening destination currencies. The effect of these to R1.29. of the Rand and the Namibian Dollar factors was most notable in the Tour against the Pula resulted in a benefit on Series category (lowest yield) out of the conversion of results for South African Financial performance United States and these bednight sales and Namibian businesses to Pula At the beginning of the year, two declined by 23%. Excluding the reported results. mobile camps were converted to fully Tour Series category, bednights sold inclusive camps under Wilderness were up 1%. Overall, bednights sold The level of forward cover taken to governance Corporate Safaris’ Adventures brand, resulting decreased by 5% from 147 136 (restated) hedge against foreign exchange in a restatement of the prior year to 140 162. The favourable exchange rate, conversion risk remained at zero. This available bednights and bednights sold. coupled with favourable changes in the will continue until, in the opinion of the The impact of this restatement was product mix, cushioned the fall in revenue Board, the risks to the business make negligible. to just 1%. cover necessary.

Baobab Lodge and Hoanib Skeleton Gross profit has increased by 2% to 70% Reversals of impairment amounted to Coast Camp were included for the full as a result of the stronger US Dollar P0.8 million. These arose mainly from financial year, compared to eight and against the Pula and the reduced the P3.4 million reversal of previous seven months respectively in the prior contribution by the Tour Series category. impairments of our Zambian assets as year. In addition, Linkwasha Camp a result of lease renewals, offset by opened in May of the current year while EBITDA margin has improved from 19% P2.5 million impairment due to damage Moremi Tented Camp closed at the to 21% with operating expenses well to two aircraft. The remaining balance beginning of the financial year. As a contained at a 2% increase despite the is attributable to impairment of loans statements financial Annual

Toka Leya Camp, Zambia This camp overlooks the Zambezi River in Mosi-oa-Tunya National Park near the Victoria Falls. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 39 Commerce continued

Figure 22: Capital spend receivable and property, plant and equipment. Botswana Net finance costs remained flat at Namibia P4.3 million, compared with P4.6 million Rwanda last year.

South Africa The net result of the above Zambezi movements is that profit before tax 0 10 20 30 40 50 60 70 80 90 was P120 million, up from P109 million Pula (million) achieved in the prior year. 2015 2016 The Group’s effective tax rate increased from 30% in the prior year to 38% in the current year. The effective tax rate is higher than the Group’s nominal rate Figure 23: Segmental profit of 22%. This is largely due to increased dividend payments by subsidiary Botswana companies to the holding company in Kenya the current year, resulting in additional

Namibia withholding and dividend taxes, higher tax rates in other jurisdictions, expenses South Africa not claimable for tax purposes, and Zambezi losses incurred by entities where 0 25 50 75 100 125 deferred tax assets could not be Pula (million) recognised. 2015 2016 The increased taxation charge resulted *EBITDA, excluding foreign exchange gains/losses and other gains. in a decline in profit after tax of 3% compared to prior year.

Figure 26: Brand share of owned bednight sales

Figure 24: Available bednights (owned camps) 2015

Botswana

Namibia

South Africa

Zambezi

0 10 20 30 40 50 60 70 80 90 100 110 Bednights (thousands)

2015 2016

Premier 13% Adventure 26% Classic 38% Tour Series 23%

2016 Figure 25: Occupancy (owned camps)

Botswana

Namibia

South Africa

Zambezi

Group 0 10 20 30 40 50 60 70 80 % Premier 12% Adventure 27% 2015 2016 Classic 43% Tour Series 18%

40 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Returns to shareholders In line with the Group’s dividend policy of at least two times cover, a dividend of 15 thebe per share was declared which is comparable with the amount paid in the prior year.

Outlook report Sustainability The Group’s strategic intent has been to invest in African tourism markets which offer authentic wildlife and safari experiences. The investment in Governors’ Camp Collection and the development of a new lodge in Rwanda are in line with that strategy. We expect to integrate Governors’ Camp operations into our existing business in terms of systems and processes, while retaining their unique brand and offering discrete from that of Wilderness Safaris. The Rwanda greenfield project of Bisate Lodge is continuing, following governance Corporate the receipt of our long-term leases. We expect the opening to be in the 2017 calendar year.

The existing business is reflecting promising forward occupancies, with a rebuilt Ruckomechi Camp that opened in Zimbabwe’s Mana Pools National Park in May 2016, to be followed by a brand new camp, Little Ruckomechi, in August 2016. We await the renewal of the leases in Botswana to commence the rebuilding of Mombo Camp. Annual financial statements financial Annual Shareholders’ information Shareholders’

Hot air ballooning in Kafue National Park, Zambia Guests staying at Shumba or Busanga Bush camp can experience the Busanga Plains from the air.

Wilderness Holdings Limited integrated annual report 2016 41 Passionate about our people We hope to inspire our staff and guests to learn about and love nature.

42 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Sustainability report Sustainability

Community governance Corporate

The Community chapter discusses all the people related to and part of our business, including guests, staff, community partners, shareholders, NGOs, governments and academic statements financial Annual researchers. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 43 Community

Due to the dynamic range of are drawn from these communities our brand or demand compensation. This stakeholders and for the purpose and thus form part of both internal has a knock-on effect in two areas. One is of managing the Community C more and external communities.) External with their respective agents: those who effectively, we have divided it into two community also includes other have unhappy clients are unlikely to send ‘sub-Cs’: stakeholders, including NGOs and us further business, while the other is • The internal community is our staff. governments. when feedback is posted on social media They are the interface between our platforms such as TripAdvisor, to which Company and our guests – as well as Guests the travelling public has direct access. other stakeholders – and therefore The guests who travel with us and stay in For these reasons, it is essential that we fundamental to our operations. our camps are one of our most important manage feedback through our dedicated We strive to ensure that they are groups of stakeholders. Guests who Customer Care department while also fulfilled, rewarded and act as valued depart satisfied and happy become tracking and monitoring the levels of ambassadors of the Company; brand ambassadors for Wilderness, guest satisfaction that we achieve, which is used to determine what is required to • The external community comprises resulting in referrals or further travels improve our levels of service. our neighbours, the rural with us. The same applies to the agents serving those guests. Conversely, communities that either own the land This is mostly achieved through a unhappy guests will not travel with us on which we operate or live adjacent guest feedback system which relies on again and, in extreme cases, might hurt to these areas. (Many of our staff questionnaires completed by guests when departing from each camp visited. These questionnaires are captured Figure 27: Guest feedback – Would you recommend this camp into a web-based Wilderness guest database and any feedback or trends March emerging are used to take any corrective action that might be needed, including ongoing training to further improve the April skills levels of our staff – be it guiding, food and beverage or front of house May management.

June

July

August

September

October

November

December

January

February

0 20 40 60 80 100 % Botswana Namibia Zambia Zimbabwe Industry average

Seychelles and South Africa data is not included here. It is not material due to the scale of the operations.

44 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

In addition, we work with Fred Figure 28: Guest feedback – General Reichheld’s formula in “The Ultimate Question”. This system takes a more sceptical view of feedback received Management and allows us to benchmark ourselves internationally with our competition. Appearance This is based on the ultimate question and style being, “Would you recommend the product to friends/family?” If we Bar and report Sustainability examine this question in isolation, dining service we are pleased that our overall net promoter score (NPS) for FY2016 was Meals 84% – this compares favourably with the same figure achieved in FY2015 and the 62% average that is published in Housekeeping Reichheld’s research of other high-end tourism products. Guiding

Activities enjoyable

Activities Corporate governance Corporate Sensitivity

Overall stay

Recommend

0 20 40 60 80 100 %

Botswana Namibia Zambia Zimbabwe Industry average

Seychelles and South Africa data is not included here. It is not material due to the scale of the operations. Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Air Botswana Welcoming guests as they embark on their ecotourism journey. Wilderness Holdings Limited integrated annual report 2016 45 Internal community

Management approach to have leaders who are able to adapt to the first phase focusing on the most these conditions and who will take our critical roles to achieve the Company’s Our management approach emphasises people along on the journey. strategic goals. The process therefore delivery through excellence, with a clear started with the Executive team and focus on continuous improvement, The business strategy is delivered with the focus was from both Group and ethical interactions and compliance in all and through our people. Our staff’s individual perspectives. This involved our internal and external dealings. passion and talent is essential as it the Executive team working together influences the internal culture of the to create principles around teamwork The elements reported on in this Internal Company, and enables our business and support, as well as individual Community chapter are managed by the to provide a world-class Wilderness assessments and critical engagement Human Resources (HR) department in experience to our guests. conversations with each member. The each region, with support and guidance second phase involved the assessment from Group HR. Group HR also creates We therefore recognise that our staff are of the current incumbents in the learning opportunities for the regional central to our continued success. critical roles and the identification of HR teams by hosting an annual HR high potential individuals within the workshop, as well as visiting each region Talent management and business. These employees undertook quarterly. This ensures that consistency succession planning individual assessments and critical is maintained across all regions and that engagement conversations as part of the minimum HR standards are supported Our vision is to conserve and restore the process. Based on the outcome of and adhered to. Africa’s wilderness and wildlife by the assessments, development plans creating life-changing journeys and were drawn up and implemented to People strategy inspiring positive action. For us to ensure smooth succession planning. achieve this, we need to ensure that we In order to remain competitive in an not only bring the right new people into A Working Talent Dashboard has ever-changing global market, Wilderness our business, but that we also invest in been created, based on the Talent requires leaders who are able to make the development and retention of our Management Programme. This ensures sound decisions, have confidence and are existing people. that we remain within the talent resilient and flexible. The environment management philosophy of deploying in which we operate is both volatile and The Talent Management Programme was the right people in the right roles ambiguous, which is why it is imperative designed as a multi-phase initiative, with throughout the Group, thereby creating

Key performance indicators (KPIs) People strategy Staff retention The Wilderness People Strategy continued to be a key focus Staff retention continues to be a concern and is therefore area with regard to talent management, people development monitored closely. The overall attrition rate has decreased over and empowering HR teams in the regions. HR processes were the past year by 1% to 20%, which still falls within acceptable standardised and, where necessary, tailored for each region’s levels for the tourism industry. unique needs. Employment of citizens Staff training There is a continued drive to employ citizens in each area of Training and development continues to be a priority for operation. Our non-citizen representation remained consistent Wilderness and, with the exception of Seychelles, we have at 7%. seen a year-on-year increase in the number of staff trained as well as in the training hours given to each employee.

46 Wilderness Holdings Limited integrated annual report 2016 Wilderness recognises that our competitive advantage lies in our people; they deliver on our strategy and build and maintain our About Wilderness About reputation with stakeholders. Training and development are critical to ensure that staff remain engaged and feel valued. This year, we continued to focus on skills development, with 2 103 staff members receiving training through various platforms.

Wilderness Safaris Johannesburg Office

Staff play a critical role in the Company’s ongoing success. report Sustainability greater job satisfaction and value-add. opportunities and growth to inspire not only to impart the necessary skills, This is an ongoing programme that our people to learn about the but also to motivate our people and is adapted along with the Company’s importance of ecotourism. In order to enable them to be successful in their strategic imperatives. It is envisaged achieve this, we believe that we have a career. that, going forward, employees will be responsibility to invest in their future, well prepared to take on new positions ensuring that they have the tools and During the course of the year, as required. knowledge they require to be successful 2 103 Wilderness employees were in their roles. trained, the majority of which were females. The internal training platforms Training and development With this in mind, the Company within Wilderness are divided between We recognise that our staff need to continues to actively support all forms camps, sales and reservations, as grow and develop and we aim to provide of training, both internal and external, well as Air divisions. Additionally, we Corporate governance Corporate

Regional training highlights

Naledi Naledi Boitumelo first joined Wilderness in May 2011 as a Curio Shop Manager. She left after a year to complete her Bachelor’s degree in Tourism Management Boitumelo before re-joining Wilderness in September 2014. On her return, Naledi was enrolled in our management training programme. This is comprehensive and exposes the trainees to all areas of the business. After graduating from the programme, Naledi was employed as a Relief Housekeeping Manager in the Linyanti Concession and has recently been promoted to a Food and Beverage Manager Assistant at one of the Premier camps in Botswana. Annual financial statements financial Annual

Namibia The goal of the 12-month Wilderness Safaris Emerging Managers Programme is to provide a practical and intense hands-on training programme to citizens who show great potential, but do not have the relevant Emerging skills or experience to assume an assistant managerial position. Three citizen managers who were Managers enrolled in the programme graduated in April 2016. The programme exposes trainees to various aspects and Guides of the business and gives them an opportunity to work within all divisions, allowing them to practise programme their newly acquired skills. A similar programme is in place for emerging guides, with four citizen guides currently enrolled in the programme.

Guide Following the great success and impact of the first Wilderness Group Guide Mentor Workshop held in early 2015, the decision was taken

training to continue this initiative and a second workshop was conducted in information Shareholders’ November 2015. The location was the eastern section of the Okavango Delta, in the diverse Khwai area. The aim was to reinforce the learnings from the first workshop and to focus on specific guiding techniques and practices. A total of 16 guides from Botswana, Zimbabwe, Zambia and Namibia attended the week-long, intensive workshop. The guides were selected based on performance, as well as their ability to become mentors for both new and current Wilderness guides.

Wilderness Holdings Limited integrated annual report 2016 47 Community continued

have also invested in our service and Performance management and all the subsystems (processes, hospitality courses on the Lobster Ink teams and employees) work together in Our performance management system virtual training platform. a way that efficiently contributes toward has been improved and now not only the achievement of the business’s goals. focuses on the individual contribution The Lobster Ink training platform is Formal bi-annual reviews are held with built around the creation and delivery to the business, but also takes into all middle and junior employees. We of detailed courses on international account performance by the respective also encourage managers to make time skills, standards and product team. This has been achieved by for additional interactions, discussing knowledge, using an online learning aligning individual objectives and goals strengths and development areas in and assessment environment to ensure with those of the team, while also order to ensure that employees feel ease of access and focused, measurable reinforcing the values of Wilderness. valued, while also improving overall training outcomes. The platform offers engagement. The focus of the formal Wilderness-specific courses as well as Our overall goal with performance generic hospitality courses. discussion is to provide fair and honest management is to ensure that Wilderness feedback in order to acknowledge great performance and to assist employees in identifying development areas. The areas of development are then addressed, with Figure 29: Average training hours per employee the employee attending various internal and sometimes external training courses. Botswana

Namibia Senior managers have formal face-to- face feedback sessions, which provide Seychelles them with insight into their leadership

South Africa abilities as well as their personal development needs. Zambia

Zimbabwe Remuneration and employee 0 100 200 300 400 500 600 benefits Hours 2015 2016 The Group’s remuneration policies are detailed in the report of the Figure 30: Number of Lobster Ink courses attended Remuneration and Nomination Committee. Botswana It is imperative that our remuneration Namibia policy is consistent and competitive across the Group and in each area of Seychelles operation. This ensures parity amongst Zambia our employees and that remuneration packages are based on level of skill, Zimbabwe competency, experience, qualifications 0 2 000 4 000 6 000 8 000 10 000 and level of responsibility. An annual Courses attended 2015 2016 internal HR audit is conducted and the Company uses these results to Figure 31: Average result achieved for Lobster ink courses rectify any imbalances that may exist within our people practices. No explicit Botswana imbalances are evident in the business.

Namibia A pension fund was introduced in Botswana at the end of February 2015. Seychelles The extensive roll-out process was Zambia managed by the HR team and Alexander Forbes representatives. The fund Zimbabwe rules were submitted and successfully 0 20 40 60 80 registered, and therefore the fund was Results (%) 2015 2016 officially implemented on 1 June 2015.

Lobster Ink training is not currently offered to the South African staff.

48 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Otherwise, employee benefits remained unchanged over the reporting period and all statutory requirements are satisfied in each country of operation. Over and above the normal statutory benefits, all bush-based employees (temporarily, seasonally or permanently) receive housing, transport to and from their report Sustainability place of work before and after their leave cycle, as well as rations and uniforms.

The Company has a medical aid fund available to all employees in Namibia and South Africa, and further options available in Botswana, Zimbabwe and Zambia. All full-time and permanent employees are encouraged to join the respective funds. In Namibia, Botswana and South Africa, full-time permanent employees are required to

join the Company pension/provident governance Corporate fund, while in Zimbabwe and Zambia, the Company subscribes to the legislative requirements of the state pension fund.

A performance-based reward system is in place with the aim of attracting and retaining the best people. As part of the Group HR strategy, our remuneration construct will continue to be scrutinised and updated to complement our talent management process. Annual financial statements financial Annual Employee value proposition To increase employee engagement, attraction and retention of top talent, create alignment within the business Kings Pool Camp, Botswana and even to possibly improve our Welcoming and attentive staff are always on standby. financial performance, Group HR embarked on a strategy to create a compelling Employee Value Proposition (EVP). In essence, it is Wilderness’ feedback from the focus groups as well the operational requirements of the promise to help employees meet as input from the Exco and will be rolled business. The HR teams in each region their needs in exchange for their daily out both internally and externally during travelled to each camp to roll out the efforts to help the business succeed. the course of the next financial year. survey and to answer any questions. Due to operational requirements,

Various focus group sessions were information Shareholders’ conducted throughout the business Employee engagement survey the survey for 2015/2016 has been postponed to early FY2017. Group HR to gain insights into the employees’ The third employee engagement survey and the Exco team will continue to experience and, at the same time, was rolled out in November 2014. manage the engagement trends and feedback was given on the latest The timeframe was extended to give ensure that barriers to engagement are results of the employee engagement employees more time to complete identified and promptly acted upon. survey. The final EVP was based on the the survey, as well as to not affect

Wilderness Holdings Limited integrated annual report 2016 49 Community continued

Inclusion and diversity Employment demographics Despite a push for gender diversity in and diversity senior positions, women still make up At the end of February 2016, Wilderness a small percentage of leaders within had 2 213 people employed within the Wilderness. The barriers currently business. As a company, we do not faced include broad gender biases, distinguish on race or gender, however a small pool of potential female we are committed to employing staff leaders internally, a lack of geographic from our neighbouring communities. mobility and a lack of flexible policies In South Africa and Namibia, we are for females. New recruitment is also compelled by legislation to report on challenging as there is a limited pool employment equity and the details are from which to source female leaders. included in Table 5. This challenge continues to be an opportunity for HR and the business to Wilderness continues to, wherever focus on a number of initiatives aimed possible, only employ citizens from the at attracting and developing under- countries where we operate. This is a represented groups and future female big challenge, as in some instances leaders. the required skills are not available. However, we have kept numbers of non-citizen employees constant at 7% for the last two years. This is a reflection of our continuous efforts to upskill local community members into positions which were previously filled by non-citizens.

Workforce nationalities Table 5: Employment equity figures for Namibia and South Africa

Namibia South Africa

2015 2016 2015 2016

Black/ Black/ Coloured White Total Coloured White Total Black Coloured White Indian Total Black Coloured White Indian Total

Male 18 – 30 years 77 6 63 1 7 1 7 7 1 5 31 – 50 years 161 10 116 9 11 1 29 10 1 25 Over 50 years 10 4 8 4 – 1 11 2 1 9 Female 18 – 30 years 96 5 77 5 21 1 17 1 19 2 13 1 31 – 50 years 140 10 101 8 14 9 91 7 20 8 90 8 Over 50 years 7 4 4 1 10 – – 13 – Total 491 39 530 369 28 397 53 13 165 8 239 58 13 155 9 235

Namibia South Africa the measures that were required in the The Namibia Affirmative Action report Wilderness Safaris South Africa’s second 2015 year. The expected headcount submitted to the Department of Labour Employment Equity (EE) report was growth has not occurred due to the was approved. From 2017, Wilderness submitted to the Department of Labour economic constraints in the tourism Air will be included in the Wilderness in 2015. Wilderness continues to track industry. The focus remains on internal Safaris Affirmative Action Report. the Company’s progress against EE promotions and new vacancies being goals and has successfully implemented filled by EE candidates.

50 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Figure 32: Workforce composition and nationalities

Botswana

Namibia

Seychelles

South Africa Sustainability report Sustainability

Zambia

Zimbabwe 0 200 400 600 800 1 000 1 200 Number of staff 2015 2016

Figure 33: Non-citizens in the workforce

Botswana

Namibia

Seychelles Corporate governance Corporate

South Africa

Zambia

Zimbabwe 0 10 20 30 40 50 60

% Workforce nationalities 2015 2016 Table 5: Employment equity figures for Namibia and South Africa

Namibia South Africa

2015 2016 2015 2016

Black/ Black/ statements financial Annual Coloured White Total Coloured White Total Black Coloured White Indian Total Black Coloured White Indian Total

Male 18 – 30 years 77 6 63 1 7 1 7 7 1 5 31 – 50 years 161 10 116 9 11 1 29 10 1 25 Over 50 years 10 4 8 4 – 1 11 2 1 9 Female 18 – 30 years 96 5 77 5 21 1 17 1 19 2 13 1 31 – 50 years 140 10 101 8 14 9 91 7 20 8 90 8 Over 50 years 7 4 4 1 10 – – 13 – Total 491 39 530 369 28 397 53 13 165 8 239 58 13 155 9 235 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 51 Community continued

Table 6: Gender and age breakdown of employees by country

Botswana Namibia Seychelles South Africa Zambia Zimbabwe

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

Male

18 – 30 years 175 144 83 64 50 43 15 13 28 18 52 51 31 – 50 years 341 426 171 125 46 55 41 36 71 78 139 151 Over 50 years 40 26 14 12 11 15 12 12 5 4 27 32 Female

18 – 30 years 155 14 101 82 17 13 40 35 11 6 13 13 31 – 50 years 349 418 150 109 16 14 121 126 7 13 27 29 Over 50 years 7 8 11 5 6 6 10 13 1 1 3 3 Total 1 067 1 036 530 397 146 146 239 235 123 120 261 279

Table 7: Turnover by category Figure 34: Workforce turnover

Male Botswana 18 – 30 years 94 31 – 50 years 133 Namibia

Over 50 years 19 Seychelles Female South Africa 18 – 30 years 89 Zambia 31 – 50 years 97

Over 50 years 8 Zimbabwe Reason 0 10 20 30 40 50 60 % Resignations 198 2015 2016 Dismissals 70 Death 2 Absconded 11

Retrenched – Shumba Camp Contract not renewed 29 Zambia chef training. Retired/transferred 130* Total 440

*The high number of transferred employees is due to the withdrawal from the management contract for the Ongava Camps.

The staff turnover rate of 20% for the year is within acceptable levels compared to industry norms, however we continue to strive to reduce this. The Company continues to monitor the turnover levels in each category to ensure that critical staff and talented individuals are retained within the business.

52 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Table 6: Gender and age breakdown of employees by country

Botswana Namibia Seychelles South Africa Zambia Zimbabwe

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

Male

18 – 30 years 175 144 83 64 50 43 15 13 28 18 52 51

31 – 50 years 341 426 171 125 46 55 41 36 71 78 139 151 report Sustainability Over 50 years 40 26 14 12 11 15 12 12 5 4 27 32 Female

18 – 30 years 155 14 101 82 17 13 40 35 11 6 13 13 31 – 50 years 349 418 150 109 16 14 121 126 7 13 27 29 Over 50 years 7 8 11 5 6 6 10 13 1 1 3 3 Total 1 067 1 036 530 397 146 146 239 235 123 120 261 279

Staff wellness staff with primary healthcare matters. with the medical aid scheme. This is This has reduced the absenteeism done in the Johannesburg and Cape A healthy and safe work environment is rate in the camps. In Namibia, a Town offices. Employees have an

directly related to higher productivity governance Corporate medical practitioner is contracted to opportunity to interact with various and engagement levels. We apply the the Company and visits the camps on healthcare practitioners and have basic ‘prevention is better than cure’ approach a regular basis doing health checks medical checks done during the course and try to provide our staff, especially and conducting voluntary HIV testing. of the day. those in remote areas, with the Previously in Zimbabwe and Zambia, necessary preventative healthcare. To continue with our HIV/AIDS drive, the Company contracted the services of our focus during the past year has In Botswana, the Company has SHARE to assist with primary healthcare, been on education. A book was given contracted the services of Okavango as well as HIV testing and counselling. to every camp employee illustrating Air Rescue to provide a preventative Unfortunately, the SHARE project has important information on HIV as well as healthcare service to our staff in ended and Wilderness is currently the prevention thereof. The Company camps. This programme includes two investigating other options to assist us continues to supply condoms and Botswana nurses who travel throughout in this regard. In South Africa, an annual femidoms in all our camps, as well as the camps educating and assisting our medical day is organised in conjunction certain offices. Annual financial statements financial Annual Shareholders’ information Shareholders’

Johannesburg staff training Staff competed in a game to learn about the Explorations product offering.

Wilderness Holdings Limited integrated annual report 2016 53 Community continued

Due to the high cost of medical aid, began with three basic questions, which initiatives which should further decrease most of our staff members use the were revisited in 2014 and a Group absenteeism. services of government clinics. This Minimum Standard introduced, which is means that they often choose not now used to assess the conditions in our Collective bargaining to use the Wilderness-offered HIV staff villages. When the first assessment International human rights, which testing programme, so this has made it was completed according to this include Freedom of Association, are impossible for us to accurately report minimum standard in 2014, Wilderness respected and upheld in Wilderness. on our HIV-prevalence rate. During achieved a low result of 30%, but with In all, 14% of our workforce belong to the past year, 398 (17%) of our staff continued focus on the improvement unions compared to 13% in the prior members were tested for HIV through of back-of-house facilities, this has the Company’s available resources. improved with a 60% result achieved year. Collective Bargaining Agreements in 2015. pertaining to wage negotiations, as well Wilderness supports and assists as other basic conditions of employment, affected employees with transportation Work place injuries and are in place with the various unions. We and time away from camp, to ensure believe in protecting the rights of all our they attend the necessary appointments fatalities employees and continually ensure that and obtain the required medication. We aim to ensure acceptable and safe fair and compliant employment practices Wilderness offers a non-discriminatory working conditions as well as a work are in place. environment where HIV is openly environment that is free from hazards. discussed and any person affected by All unsafe acts, poor working conditions Ethics this disease is supported, counselled or potentially harmful incidents are The Wilderness Group has an and assisted as necessary. avoided and addressed wherever possible anonymous ethics hotline available to employees, suppliers and guests Staff accommodation In the past year, there were 45 work- to report any incidents of misconduct. In 2011, Wilderness realised that more related injuries in Wilderness with no This hotline is monitored by an external focus needed to be placed on the fatalities. Even though absenteeism company who notify us when risks are condition of our staff villages and a has substantially decreased from the identified or reported. In the past year, simple assessment was implemented in previous year, it is still high in Botswana. five reports were submitted; all were order to determine the status quo. This The Company has implemented various investigated and resolved.

Kalahari Plains Camp staff Wilderness is committed to employing staff from local communities.

54 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Compliance with During the reporting period, all work- related grievances that were reported international labour have been resolved amicably between standards the parties. All our operations have Wilderness is committed to the labour clear HR policies and processes in place rights principles provided by the that are based on the International International Labour Organisation. We Human Rights Charter as well as the believe in improving the standards International Labour Standards. Our Sustainability report Sustainability of living for all our people and will employees are not specifically trained not tolerate any form of unfair on the International Human Rights discrimination, inhumane treatment, Charter, however the principles thereof child or forced labour, harassment or are incorporated in all aspects of intimidation in the workplace. Ensuring operation and are the foundation for our a safe, respectful and fair workplace is employment contracts. of prime importance and we continue to meet or exceed all relevant global Corruption in any form is not tolerated labour standards ethically and with and the Company will take serious dignity. We strive to reduce and action against any offender. Our ultimately eliminate any social and procurement policy gives preference to economic inequalities and imbalances local suppliers, where available. Where that may exist in our operation and appropriate, for reasons of scale, a promote a fair and equitable working centralised procurement agency is used. governance Corporate environment. Our grievance mechanism Child or forced labour is prohibited ensures that all employees have an and the Company will take appropriate avenue that is free from victimisation to measures in cases where this is lodge any work-related grievance they identified. may have.

Table 8: Health statistics

Botswana Namibia Seychelles South Africa Zambia Zimbabwe

Number of work-related Injuries 14 – 13 – 26 6

Number of days lost due to statements financial Annual work-related injuries 35 – – – 43 – Number of chronic diseases recorded in workplace 39 – – 3 2 2 Number of employees booked off sick for chronic diseases 46 – – – 1 5 Number of days lost due to absenteeism related to chronic diseases 16 – – – 2 – Number of work-related fatalities – – – – – – Number of work days lost due to paid absenteeism (paid sick leave) 5 821 836 428 479 28 1 066

Number of work days lost due to information Shareholders’ unpaid absenteeism 5 789 820 – – – –

* Chronic diseases: Malaria, high blood pressure, STD, low blood pressure and tuberculosis.

Wilderness Holdings Limited integrated annual report 2016 55 External community

The material aspects in this chapter Our community engagements and community projects will increase focus specifically on the rural development activities recognise these accountability and transparency, and community stakeholders because of the realities and broadly aim to ensure provide a more efficient and effective positive and negative impacts that they that neighbouring communities benefit channel for donors. will have on the future of our business from ecotourism and, therefore, value and, in turn, the business on them, and conservation areas and will ensure their This Strategic Plan has been informed because of the need to ensure that they long-term sustainability. by meetings with all relevant community benefit from their natural resources. development departments and Regional Group Community Managing Directors, past community The profitability and sustainability developments and engagements, of our business depends upon the Development Strategy as well as the overall experience of health of the wilderness areas in which The Group Community Development Wilderness. The strategy includes we operate and the ecosystems and Strategy for 2015 – 2019, finalised detailed appendices for each region, species they seek to conserve. These in the reporting period, presents an outlining their specific strategic will be determined by the attitudes alignment of the strategies, vision and objectives, short- and long-term and behaviour of communities living goals of Children in the Wilderness goals, along with guidelines on how in, or adjacent to, protected areas, (CITW) and the Wilderness community they engage with communities and who frequently bear the costs of development projects. It allows for how development projects and CITW conservation through human-wildlife a more structured and sustainable participants are chosen. This Strategy conflict and the opportunity costs of not approach to community engagements is relevant to the Regional Managing being able to use conserved areas for and developments. Focusing on specific Directors and Operations Managers, settlement or agriculture. As a result, areas and projects will ensure that Community Development Liaisons, there is a direct correlation between community development initiatives CITW Coordinators, and community the success of our business and the make a real, sustainable difference in partners and supporting NGOs, goodwill and support of surrounding our areas of operation. Coordinated governments, staff and any other communities. administration and management of parties involved in the administration, management or fundraising associated with our community developments and engagements. The role of these different Key performance indicators (KPIs) stakeholders varies with the particular community development project or Development Community partnership. Our overall Community Development projects partnerships strategy, which includes CITW, aims to: • Ensure that local communities Raised, managed and administered funds Community partnership and staff derive an equitable share of benefits for community development projects contributions amounting to over from conservation and tourism; amounting to P3.8 million, an increase of P47 million, up from P43 million in the • Reduce poverty; 52% from the prior year. prior year. • Improve living conditions; • Empower communities; Environmental education • Enhance local education systems; and programme • Promote environmental education. Supported Children in the Wilderness to ensure the operation and growth of an The above are largely achieved through effective, sustainable environmental education programme. improving school infrastructure,

56 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Our external community includes all external stakeholders, such as community partners and neighbours, governments, NGOs, guests, other private sector businesses and educational institutions.

Nedbank Tour de Tuli

An annual mountain bike tour that raises funds for and awareness 0f Children in the Wilderness. report Sustainability

introducing CITW Eco-Clubs, scholarship structures, etc. were standardised and Our relationships with communities programmes, nutrition programmes there was a sharing of ideas, successes and other stakeholders are either and the promotion of small community and challenges, which allows for further formal or informal and depend on the businesses. All of these provide local development of the various programmes specific project and its requirements. communities with tangible benefits from and projects. In each region, community The nature of the relationship will tourism. development staff meet on a regular determine the degree of involvement basis with community partners and the of community members, the level of The CITW strategic objectives outlined schools we engage with, as well as other benefits they receive and the extent of in the Group Community Development community, government, private sector capacity building, skills development Strategy are to: and NGO partners. and training. • Make a sustainable, positive Formal relationships include any difference to children’s lives through Overall, our community engagement contractual agreements and take the an interactive, fun environmental goal is to establish and maintain sound, following forms: governance Corporate education programme; equitable, beneficial partnerships with • Joint business ventures of various • Assist children in completing their the communities with whom we work and kinds; education through a sustainable, engage. Partnerships and relationships • Employment and the associated transparent, accountable scholarship are only entered into after discussions payment of wages and salaries; programme; with communities and with their buy-in • Contracts with local suppliers; • Through partnerships, improve career and support. This approach ensures • Contractual agreements with development opportunities for CITW that the projects are more sustainable, communities in regard to children beyond school; and aligned with community needs, and that employment, supplies of goods and resultant benefits are maximised. • Empower CITW children and their other services, etc.; and families through assisting them • Formal, as well as on-the-job, skills with livelihood diversification Our community engagement training and development. projects.

methods statements financial Annual Informal relationships are not All material aspects reported on in this In order to achieve our goals we contractually binding but are no less chapter are managed by country-level have implemented a wide range of important and have developed in all staff within five countries of operation engagements with local communities, regions. These include: (Botswana, Namibia, South Africa, including: • The CITW programme, including Eco- Zambia and Zimbabwe), with support • Our Children in the Wilderness Clubs and annual camps; from a Group Coordinator, as well as programme; Group resources which are available to • Other community projects, including • Various formal partnerships; all regions. In order to maintain ethical libraries, scholarships, nutrition and equitable partnerships with our • Preferred employment of locals; programmes, vegetable gardens, external communities, country community • Development of various community etc.; development staff and Group resources and social welfare projects; and • Sale of locally made curios to meet regularly through regional visits • The use of local suppliers of goods guests; and annual workshops. In February 2016, and services. • Provision of administrative, a Group Community Development and logistical and other support to information Shareholders’ Children in the Wilderness workshop Being located in many remote and rural NGOs, academic researchers and brought together all country community areas gives us the opportunity to assist in communities in our areas; and development staff to discuss their community development and to develop • Empowerment and upliftment projects, the CITW programme, its partnerships with communities living in impacts that result from joint sustainability and the way forward. At this and around conservation areas, as well business ventures, participation in workshop, a number of CITW programme as with various NGOs and other private local decision-making and improved materials, community development partners. social welfare.

Wilderness Holdings Limited integrated annual report 2016 57 Community continued

Some specific projects implemented A quarterly community development sector partners. Our community and during the reporting period included: newsletter is distributed to all our conservation projects receive attention • Managing over 300 school regions, interested guests, agents and from academic researchers, a number scholarships; other stakeholders. The newsletter of whom are presently working in our • Assisting with the development of details community projects and regions ( see Wilderness Wildlife livelihood diversification projects; engagements underway and further Trust: www.wildernesstrust.com). assists us in monitoring their progress Other rural community partners include • Upgrading infrastructure, e.g. school (all newsletters can be found at local suppliers of goods and services, classrooms, libraries, etc.; www.childreninthewilderness.com/ community guides for village visits, • Training and skills development; about-us/annual-reports-newsletters). local craft makers, formal business • Training teachers in literacy; Our annual Regional Workshop also partners and our staff. Staff spending • Various environmental projects; and assists us to measure progress, assess their salaries in their home villages also • Introducing and further developing learnings, identify ways to improve contributes to local economies and existing vegetable gardens and and to ensure that our community results in further important multiplier vermiculture projects. development and CITW projects are effects of the business on local sustainable and having the maximum stakeholders. A reduction in poverty levels is also impact. The CITW team is currently achieved through preferred employment developing an extensive monitoring and Achieving harmonious of local people and the consequent evaluation tool to aid monitoring of the increase in rural household incomes. programme going forward. relationships with community This falls under the Human Resources/ partners Internal Community strategy. Promoting inclusive business In order to achieve harmonious Although CITW is an independent NGO, In order to create long-lasting mutual relationships, we need to understand it is supported by Wilderness through benefits between our community the communities with whom we in-kind as well as monetary support. neighbours and the business, wherever are engaging: their socio-economic Office space for CITW staff, logistical possible, Wilderness promotes situation, demographics, attitudes and administrative support, etc. are business linkages with local community towards ecotourism and conservation, all provided by Wilderness. Funds for members as suppliers of goods and their needs and how best to partner with CITW are raised largely through the services, as well as through various them to improve their social welfare and annual Nedbank Tour de Tuli mountain partnerships with communities. These encourage development. bike ride, Wilderness Safaris Residents include community trusts (e.g. Mpukane From 2008 to 2010, we conducted socio- Programme, guest donations and Trust at Rocktail Camp, Okavango economic interviews with more than support through various other grants. Community Trust at Vumbura Plains 1 800 community members in Botswana, and Little Vumbura), community Malawi, Namibia, South Africa, Community development projects are conservancies (Torra, Sesfontein, Seychelles, Zambia and Zimbabwe. The largely funded through grants, guest Anabeb, Doro !Nawas and Marienfluss data collected was analysed, reported donations and, in Zimbabwe, through in Namibia), as well as government on and published in academic, peer- our partnership with the Grand Circle agencies (e.g. National Parks in Zambia reviewed journals, as well as a Doctoral Foundation. The support, financial, and Zimbabwe). administrative and logistical, given by Dissertation in Resource Economics at Wilderness to CITW is material to both A number of our projects also involve the University of Cape Town. Socio- and therefore reported here. working with NGOs and other private economic research was ongoing in the

Measuring our progress To date, we have measured progress in community development and Wilderness’ contribution to Nedbank Tour de Tuli engagement by recording the monetary amounts paid to projects or A total of P73 643 was given to communities, as well as the number of Nedbank Tour de Tuli as sponsorship people impacted or affected by these. for cyclists’ shirts and a community Although tangible projects, such as donation (backpack with stationery). infrastructure, are often more popular Wilderness also provides logistical and for donors, we attempt to administrative support to the event direct donations towards intangible assisting in ensuring a successful projects such as capacity building, fundraising event, while wilderness staff education and scholarships, which are are given time off to assist prior to and often more important for long-term during the event. sustainability and poverty reduction.

58 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

reporting period and new research will • Community as landlords: In and business. Our community be conducted in the next reporting Namibia, the Community Based development and engagement period*. Natural Resource Management in these partnerships is largely programme devolved power to informal and voluntary; Contractual and other community local conservancies and gave them • Non-Wilderness private landowners partnerships stewardship over their land. In – management contracts: Some of Wilderness has entered into a variety these cases, the Conservancy is our our engagements are with private of equity/ownership partnerships landlord and (as noted above) for sector partners who own the Sustainability report Sustainability with local communities. Benefits Damaraland Camp and Doro !Nawas camps which we manage and/or from these vary according to the Camp we have also developed market, depending on the specific nature of the agreements. The level of formal joint ventures. Alternatively, agreement; and community involvement also depends in the Marienfluss Conservancy, • Pure private sector, with on the specific conditions of the equity Serra Cafema Camp pays the philanthropy: In cases such as arrangement, with a large amount of conservancy lease fees and the Mombo and other camps in the involvement occurring in community- community are our landlords, rather Okavango Delta in Botswana, as based tourism, and a more limited than formal joint venture partners; well as in Hwange National Park in amount in public–private partnerships • Public-Private Partnerships (PPPs): Zimbabwe, the camps are owned (PPPs). Research has shown that, We are involved in a number of by Wilderness and any engagement where communities have some form PPPs with National Park agencies with local communities is voluntary, of vested interest in the business, in the regions where we operate. through various philanthropic they are generally more positive about Our camps in Kafue National Park in efforts. Engagement with ecotourism and conservation**. Zambia and Hwange National Park communities in these cases also Corporate governance Corporate We have therefore attempted to include in Zimbabwe bring together the results from employing local staff local communities in our ecotourism expertise of the relevant National and investing in their skills training operations, preferably formally, Parks agency in biodiversity and development. though some partnerships are more conservation and ours in ecotourism informal. Below is a list of some of the partnerships in which the Group is engaged: • Joint ventures: Wilderness and Figure 35: Total community partnership value various community partners: We Vumbura Plains; have entered into a number of Little Vumbura joint business ventures. These are Banoka Bush Camp; Khwai Discoverer; Khwai Adventurer; formal, contractual agreements Wilderness Tented with communities or community Moremi Tented; statements financial Annual trusts. In some situations, the Santawani community is involved in the Damaraland ownership of the respective camp

(e.g. Rocktail Camp; Damaraland Doro Nawas Camp; Doro Nawas Camp) or is paid lease fees (e.g. Vumbura Plains Desert Rhino; Hoanib Skeleton Coast and Little Vumbura). In both cases they are sharing in the benefits of Serra Cafema the business venture and there are benefits and costs for both parties. Rocktail Ownership brings with it a sense of 0 5 000 10 000 15 000 20 000 pride and responsibility, but also a P’000 level of risk; 2015 2016 Shareholders’ information Shareholders’

* Snyman, S. (2016) Strategic Community Participation in Sustainable Tourism, in McCool, S. & Bosak, K. (eds), Reframing Sustainable Tourism, Springer. Spenceley, A. & Snyman, S. (accepted, publication Jan 2017). Can a wildlife tourism company influence conservation and the development of tourism in a specific destination? DOI: 10.1177/1467358416634158. Tourism and Hospitality Research: Special issue Sustainable and inspirational: A decade of progress in protected area tourism. ** 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.

Wilderness Holdings Limited integrated annual report 2016 59 Community continued

Rwanda: Community empowerment and conservation

During the reporting period, Wilderness bought 27.88 hectares of land, consisting of 161 individual plots from 105 landowners. This land will be the site upon which our new Bisate Lodge will be constructed during 2016. The total cost of this land purchase, including management of the process, legal fees, etc. amounted to P4.9 million. The majority of those whose land was purchased intended to use the funds to purchase more land. Wilderness will be conducting socio-economic research during the next reporting period looking at the impact that this land purchase has had on local people. Since May 2015, we have germinated and propagated some 4 500 indigenous trees in the initial on-site nursery. Towards the end of the financial year, we moved the nursery to a new location and significantly expanded its capacity so that it can now accommodate as many as 40 000 seedlings. Also, in February 2016, we planted the first tranche of more than 2 000 trees out onto the site in order to take advantage of the March-April rainy season. During the reporting period, the nursery employed two local staff. The total costs to establish and run the nursery during the reporting period amounted to approximately P39 500. The ultimate plan for the property is to restore indigenous vegetation as it relates to altitude, aspect and soil type. For the most part, this is in essence two habitat types. The first is indigenous African mountain bamboo Arundinaria sp. These form generally monotypic stands at lower altitudes and include low density of other species such as quick-growing forest emergents like Dombeya species. At the altitudinal level above this, bamboo grades into a more mixed woodland dominated by species such as Hagenia abyssinica, Hypercium and Neoboutonia. In essence, the property will be restored to the vegetation types that would have occurred here prior to its historical excision from the park and will thus provide expanded habitat for self-colonising indigenous and endemic bird, mammal, reptile and amphibian species.

For more information on Rwanda: Community empowerment and conservation watch this video on https://youtu.be/q795gbuNORQ

Joint venture partnership: Wilderness Safaris and Doro !Nawas Conservancy

Partnerships between the private sector and communities can take many forms. Where communities are joint venture partners with an equity stake, there is a degree of risk for all stakeholders, especially if the business, for whatever reason, is not performing to the partner’s expectations. Another risk to the partnership is conflict within the community. During the reporting period, the Doro !Nawas Conservancy committee was disbanded after committee members were asked to step down by the community. There was significant discord within the community as to who should be selected as the new committee members and an agreement could not be reached. This resulted in there being no Conservancy committee for an extended period and, therefore, an inability for Wilderness Safaris to have Joint Management Board (JMB) meetings with their community partner. These JMB meetings are a prerequisite according to the agreement between the parties which, therefore, resulted in a breach of the contract. The Ministry of Environment (MET) took over the management of the Conservancy during this period. This case highlights the potential challenges resulting from private sector-community partnerships which extend beyond the actual official agreement to issues that either party may be having internally. The importance of a cohesive, stable community structure is also highlighted.

60 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Table 9: Joint venture and other payments to community partners

Annual Staff Total Nature of value costs* payments Country Camp engagement Details P’000 P’000 P’000

Botswana Vumbura Plains, Formal joint A joint venture exists which pays lease 2 306 14 330 16 636 Little Vumbura venture fees to the Okavango Community Trust.

Banoka Bush, Private sector- Wilderness pays the Khwai 3 250 3 184 6 434 report Sustainability Khwai community Development Trust an annual lease fee. Discoverer, partnership Khwai Adventurer, Wilderness Tented

Moremi Tented, Private sector- Wilderness pays the Sankuyo 1 008 1 664 2 672 Santawani community Community Development Trust an partnership annual lease fee.

Namibia Damaraland Formal joint 20% of ownership was transferred 753 2 004 2 757 venture to the community annually from years 10 to 15 of the partnership.

Once they owned 100% of the camp, governance Corporate the community sold 60% back to Wilderness. The community currently has the remaining 40% equity stake.

Doro Nawas Formal joint 55:45 partnership between Wilderness 693 2 058 2 751 venture and the Doro !Nawas Conservancy.

Desert Rhino, Public-private- Wilderness operates Desert Rhino Camp 1 833 3 730 5 563 Hoanib Skeleton community and Hoanib Skeleton Coast Camp and Coast partnership pays a minimum fee of N$1 200 000 (P1 025 641) per annum to the Big 3 (Torra, Sesfontein and Anabeb) Conservancies.

Serra Cafema Private sector- Wilderness pays the Marienfluss 948 2 414 3 362 statements financial Annual community Conservancy 8% of turnover. partnership

Rwanda Bisate Private sector- 27.88 hectares of land was procured 4 897 40 4 937*** community from community members. This land partnership will be reforested and a camp will be built here, with the aim to eventually connect this land to Volcanoes National Park.

South Rocktail Public-private- A partnership between Wilderness and 88** 2 349 2 437 Africa community the KwaMpukane Community Trust. partnership, A BEE partner owns 10% and 17.5% is

including a owned by KwaMpukane Community information Shareholders’ joint venture Trust. 8.5% of revenue, as well as with the annual turtle viewing fees, are paid to community iSimangaliso Wetland Authority.

Total 15 776 31 773 47 549

* Staff costs include wages, bonuses, training, uniforms, transport and food. All examples have preferred employment of local staff. ** Previous IRs (2014 and 2015) included an amount here paid to iSimangaliso Wetland Authority for concession fees. This has been excluded in this report and only community-related contributions have been included. In 2016 reporting period, the payments to iSimangaliso were P957 935. *** This is not an annual value but was a once-off payment for land and the staff costs include the set-up of the tree nursery, etc. (see text box for more details).

Wilderness Holdings Limited integrated annual report 2016 61 Community continued

Figure 36: Annual value of payments to community partners Children in the Wilderness

Vumbura Plains; (CITW) Little Vumbura Children in the Wilderness (CITW) is a Banoka Bush Camp; Khwai Discoverer; Khwai Adventurer; non-profit organisation supported by Wilderness Tented Wilderness to facilitate sustainable Moremi Tented; Santawani conservation through leadership development and to provide educational Damaraland support to rural children in Africa. Our CITW programme is an environmental Doro Nawas and life skills education programme. It focuses on the next generation of Desert Rhino; Hoanib Skeleton Coast* decision-makers, inspiring them to

Serra Cafema care for their natural heritage and to become the custodians of these areas in

Rocktail** the future.

0 500 1 000 1 500 2 000 2 500 3 000 3 500 P’000 How the programme works 2015 2016 Eco-Clubs

* The increase for Desert Rhino/Hoanib Skeleton Coast concession in 2016 relates to the full operation The CITW ground team operates of Hoanib during this period. Eco-Clubs in the various communities ** Rocktail Camp figures have been adjusted for 2014 and 2015 as the figures reported in those IRs with which we engage. The Eco-Clubs, were for concession fee payments to iSimangaliso Wetland Authority, not the community payments which take place at rural schools, only. This has been corrected for all future reporting. follow a structured curriculum and, depending on the region, take place either weekly or monthly. Eco-Clubs give all learners who are interested in the environment a chance to meet, learn, discuss and expand their knowledge of environmental issues. We are also Figure 37: Staff costs paid in community partnership camps able to reach more children in the communities and on a more regular Vumbura Plains; basis. Children participating on the Little Vumbura annual CITW camps are usually selected Banoka Bush Camp; Khwai Discoverer; Khwai Adventurer; from Eco-Clubs. A total of 58 Eco-Clubs Wilderness Tented with 2 554 members were supported Moremi Tented; Santawani during the reporting period.

Damaraland Annual camps

Doro Nawas A Wilderness or partner camp is closed for a few days each year, and 12 to 30 Desert Rhino; children between 10 and 17 years old, Hoanib Skeleton Coast* pre-selected from the Eco-Clubs in

Serra Cafema neighbouring schools and communities, are hosted in the camp. The Camp

Rocktail Director, with a full complement of 0 3 000 6 000 9 000 12 000 15 000 volunteers and mentors, runs an P’000 educational and fun-filled programme. 2015 2016 A structured curriculum is followed in all regions in order to ensure sustainability, * The increase for Desert Rhino/Hoanib Skeleton Coast concession in 2016 relates to the full operation continuity and to allow for measurement of Hoanib during this period. and assessment. These camps provide the children with an opportunity to be a tourist in their own country and to experience firsthand a large amount of what they have learnt in their Eco-Clubs. Also, it is often the first time that many

62 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

of them have a positive experience southern Africa. Once trained, mentors YES programme runs either through with wildlife and this assists them are able to host Eco-Clubs in the local weekly Clubs or an annual camp, in understanding the importance of village schools and assist Eco-Club depending on the region. This enables tourism and conservation. Since 2001, members in implementing environmental mentors to spend more time with the over 5 600 children have been hosted projects in their villages. A total of children and identify candidates for the in our camps in six southern African 192 teachers were trained during the scholarship and internship programmes. countries – Botswana, Namibia, Malawi, reporting period. YES programmes, previously South Africa, Zambia and Zimbabwe.

Youth Environmental Stewardship (YES) called Environmental Stewardship report Sustainability Programmes, have been running in Eco-Mentor training programme Botswana since 2008, where they have The YES programme focuses on children Our Eco-Mentor training aims to hosted 204 children to date. They were who show commitment and potential develop local community members introduced in Malawi, Namibia and and have been identified in Eco-Clubs and Wilderness Safaris camp staff Zimbabwe in the reporting period, with and on annual camps as showing a by upgrading skills, increasing a total of 178 children involved, and particular interest in conservation. The environmental understanding and will be rolled out in all countries in the curriculum for the programme is an enabling them to better implement next reporting period. This will allow the extension of concepts introduced in Eco- school and village environmental projects programme to grow with the children Clubs and at camp, with a greater focus and initiatives. This programme assists and continue to provide them with on career development, leadership, and in addressing the critical teaching skills environmental education and support. shortage in environmental education in further environmental education. The Table 11: Total spent on CITW

Table 10: Children in the Wilderness statistics for the reporting period P Corporate governance Corporate Number of children attending Eco-Clubs 2 554 2015 3 069 459 Number of CITW annual camps 26 2016 4 691 206 Number of children participating on annual camps 536 Number of volunteers (Wilderness staff, teachers and others) 336 Number of YES Club members 178 Cost of programme* (P’000) 4 309

* Does not include opportunity costs associated with closing the camps to paying guests, but includes costs for Eco-Clubs, training, camps, and scholarship programme.

Zimbabwe Assisting with library development. Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 63 Community continued

Scholarship programme uniforms, stationery, and other schooling media platforms, assists the programme In almost all the areas where we operate, needs. Funding for this programme with raising funds to achieve its vision of primary education is free or has a small comes largely from Wilderness guests making a positive sustainable difference cost, but secondary schooling usually and agents, as well as other partner in the lives of those living in and around has a larger fee attached to it. For this NGOs, corporates, etc. A total of the conservation areas in which we reason, a large majority of children 302 children were supported on the operate. will only ever complete their primary CITW scholarship programme in the Eco-Stars is an upbeat magazine which schooling. Through our Eco-Clubs and reporting period. encapsulates everything that CITW CITW Camp programme, we are able Watch the latest CITW video on YouTube is about and introduces readers to to identify children who are doing well here: https://youtu.be/i0wnN4E63LQ academically but whose parents are the people behind the scenes, from unable to send them to secondary our tireless team and the dedicated school. Our Scholarship programme Eco-Stars publication and caring Eco-Mentors to the gifted aims to provide these children with an Wilderness funded the production and children themselves – the Eco-Stars. The opportunity to complete their schooling printing of the first Eco-Stars publication magazine is available to all guests and and to give them hope and inspiration for CITW at a cost of over P69 000. staff, as well as in airport lounges and for their future. The programme provides This, together with the marketing online ( www.childreninthewilderness. funding for the necessary school fees opportunities provided by Wilderness in com/about-us/eco-stars/). and, as often as possible, we assist with camps to guests and through our social

Programme structure INITIATIVES DEVELOPMENT COMMUNITY

CAREERS Tertiary education These initiatives include scholarships school support, community and/or internships development and livelihood diversification projects to reduce poverty, improve Secondary school living conditions and scholarships enhance local education systems. Provides children from our programme, who are doing well academically but whose parents are unable to afford to send them to secondary school, an opportunity to complete their schooling.

Youth environmental stewardship (YES) The YES programme focuses on children with commitment and potential who have been identified in Eco-Clubs and on annual camps as showing leadership and an interest in conservation and on leadership qualities.

Our Eco-Mentor training ADULT ECO-CLUBS aims to develop local community members, Assisting with skills training, including local teachers Annual camps livelihood diversification and Wilderness Safaris projects, business skills and camp staff by upgrading A Wilderness Safaris/Partner camp is closed for a few days each year, and 12 – 30 children between 10 and 17 years old are hosted in the camp providing an important link their skills in environmental between parents, elders, understanding and enabling for a four-day educational and fun-filled programme, including lessons, games, teachers and children on them to better implement practical sessions and wildlife activities. our programme. school and village environmental projects and initiatives.

Eco-Clubs Throughout the year, we operate Eco-Clubs in rural schools in the communities with which we work.

ECO-MENTOR ANDTEACHER TRAINING They follow a structured curriculum, providing all learners interested in the environment a chance to meet, learn, discuss and expand their knowledge of environmental issues. Children participating on the camps are selected from Eco-Clubs.

Figure 38: Children in the Wilderness programme structure

64 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Community development Table 12: Summary of community development project donations projects Donations from The majority of our community Wilderness development projects are funded excluding Other either by cash, in-kind or specific in-kind donations* Total donations from Wilderness camps or Country (P’000) (P’000) (P’000) offices, guests, NGOs, and various Botswana 327 – 327

corporates. Wilderness administers report Sustainability Namibia 502 138 640 and distributes these donations as required, or as specified. Staff and South Africa 549 – 549 transport used in the management Zambia 94 98 192 and implementation of these projects Zimbabwe 388 1 790 2 178 also form part of our contribution Total 1 860 2 026 3 886 to community development and CITW. These projects would not be * Provided by external parties with Wilderness and CITW assisting with the selection, implementation and management of all projects initiated with these funds. implemented without Wilderness’ presence in these areas or our administrative and logistical support. need. Overall, donations to communities sustainability fund data. In 2015, total Fundraising is largely done by each related to Wilderness’ operations were donations amounted to P2.58 million, of the individual countries, although P3.88 million in 2016, P1.8 million of showing a decrease in total donations of funds are also raised through which is due to the inclusion of the approximately P500 000. the Wilderness Safaris Residents governance Corporate Programme, Wilderness Wildlife Trust and for CITW, through the annual Nedbank Tour de Tuli mountain bike CITW Eco-Stars Magazine event. A number of our community This annual publication was launched in early 2016 to introduce readers to the programme. projects are partnerships with NGOs and other stakeholders, who assist with fundraising, logistics and management of some of the projects. Funds are also raised through Wilderness’ guests visiting communities and/or hearing about projects from staff. Wilderness contributes a portion of guest bednight fees to a sustainability fund, statements financial Annual which funds all 4Cs projects and administration. The community portion of this allocation has been included for the first time, explaining why the community donation amount is higher than in previous years. Table 12 shows the breakdown of the allocation from this fund to the community development and CITW departments, as well as other donations made by Wilderness to community projects.

‘Other donations’ are funds received

from donors, mostly Wilderness guests information Shareholders’ and NGOs, to manage and implement community development projects on their behalf. A number of these ‘other donations’ are earmarked for specific projects by the donor, but funds are only allocated by Wilderness or CITW, after discussions with community leadership, to the project in most

Wilderness Holdings Limited integrated annual report 2016 65 Community continued

Empowering Women Project Figure 39: Community donations As one of our community development projects, CITW, together with Wilderness Botswana Safaris, initiated an Empowering Women Project (CITW Adult Eco-Club) Namibia in Botswana in 2014, assisting a local South Africa community women’s group with start-up capital and business guidance. Zambia Through this project, we offer rural women the support and guidance Zimbabwe* required to lay the foundations of their 0 500 1 000 1 500 2 000 2 500 P’000 own businesses, thereby creating 2015 2016 sustainable economies in these * The Zimbabwe figures include amounts raised by Grand Circle Foundation (GCF) with Wilderness and communities. The programme consists of CITW assisting with the selection, implementation and management of all projects initiated with these funding applications, discussions as to funds. marketing and distribution of products, etc., as well as Wilderness providing financial guidance and training in period, there were six Adult Eco-Clubs women’s groups for use in the camps business and marketing skills. Ongoing in Botswana and one in Zimbabwe, with and as guest gifts. These goods included support is also provided to women’s other regions planning on starting a a variety of beaded items, including groups through Wilderness and CITW programme in the next reporting period. food, glass and jug nets, water bottle staff meeting with the teams regularly holders, bags, beaded lamps, beaded to discuss their progress, as well as any In Botswana, the Adult Eco-Clubs have Botswana pins and bracelets. This challenges they are facing. Wilderness received a number 0f orders from spending assists these women and their and CITW staff also assist with buying the Wilderness Safaris. During the reporting households and also ensures that local necessary supplies to get the businesses period, Wilderness Safaris bought goods are used in camps. off the ground. During the reporting goods to the value of P65 950 from the

CITW, Botswana CITW annual campers learning about conservation.

66 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Sustainability report Sustainability Corporate governance Corporate CITW, Namibia Scholarship students receiving stationery.

Children in the Wilderness recognised as a runner-up in the UNWTO Awards

Children in the Wilderness is proud to have been recognised as one of the runners- up in the ‘Innovation and Excellence in Non-Governmental Organisations’ category at the UNWTO Awards held in Madrid, Spain on 20 January 2016. The United Nations World Tourism Organisation (UNWTO) Awards have been running since 2003 to honour the work being done in the tourism industry to benefit communities. These awards are considered a flagship for the global tourism sector, which recognise organisations focusing on knowledge creation, dissemination and innovative

applications in tourism. Wilderness received kudos and global recognition for this statements financial Annual initiative as well as recognition from the South African government.

Staff initiative supported by Wilderness

Helping Hands is a Wilderness Safaris South Africa staff initiative that was established by the Johannesburg office manager when the child of a staff member was diagnosed with leukaemia. Their medical bills spiralled out of control and Wilderness staff wanted to help with the shortfall. The office manager had the idea that selling meals to staff members would raise the much-needed funds.

The first meal was served to staff on 5 June 2015 and meals have been served almost every second week since then. information Shareholders’ Various donors have assisted with ingredients as well as funds and over P77 000 was raised during the reporting period. This would not have been possible if Wilderness did not allow staff the time to prepare and serve the meals on a bi-weekly basis, often involving a number of staff members to assist on the day. This is now an ongoing initiative to help any staff member that finds themselves in a position of need.

Wilderness Holdings Limited integrated annual report 2016 67 Cultural interactions at Toka Leya Camp Wilderness strives to promote meaningful and enriching cultural encounters.

68 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Sustainability report Sustainability

Culture governance Corporate

Culture is a multifaceted dimension that governs respect for the culture of all our employees, guests, and the remote rural communities surrounding the conservation areas in which we operate. To statements financial Annual a large degree, Culture gives context to the other three Cs, as it impacts on and is affected by all the other Cs. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 69 Culture

Management approach incorporating culture into tourism and of these differences and efforts to ensuring that this is done in an ethical, accommodate them. The various aspects discussed in the meaningful, respectful and sustainable Culture chapter are considered material way. A database of cultural products and due to: Reasons for the incorporation services was started, highlighting areas • The impact that they could have of culture for greater inclusion of culture in the on our guest activities directly business going forward. Tourism has become an increasingly and the associated reputational complex phenomenon, with political, opportunities and risks; Encouraging staff to be proud of their economic, social, cultural, educational, • The potential impact on staff from culture and to integrate this into guest biophysical, ecological and aesthetic diverse cultures; and activities allows guests and Wilderness dimensions. The sector can play an important role as one of the foremost • The possible direct and long- employees to learn about Africa’s drivers of cultural exchange, providing term impacts of tourism on host cultural diversity. We understand a personal experience, including not communities and their cultures. culture to be a celebration of the diverse histories and traditions, art, only past traditions, but also insight into the contemporary life and society All the aspects covered in this chapter beliefs, languages, games, clothing, of other cultures. In order for tourism are managed by country-level staff sport, singing and dancing of various to be sustainable, it should bring within the six countries in which we different ethnic groups. Cultural direct, as well as indirect, benefits operate, with support and advice from diversity, therefore, gives character and to host communities and provide an Group resources. In order to ensure uniqueness to our camps and our guest ethical relationships with the external experiences. communities and staff with whom we engage, regional staff and Group We engage with almost 40 different resources meet regularly through visits ethnic groups, identified among our and annual Regional Workshops. staff and host communities. During the reporting period, our At least 28 of these ethnic groups are in-house anthropologist identified represented in our staff body. Due opportunities for improving guest to this ethnic diversity, Wilderness experiences and our interactions with encourages and supports an ethic of local communities. Through socio- acceptance, tolerance and respect in all cultural surveys conducted in Botswana, activities and engagements throughout Namibia and Zimbabwe, he was able the business. This is done through the to present possible best practices for acknowledgement and acceptance

Key performance indicators (KPIs) Culture Strategy Wilderness Ethics Charter Finalisation of the Wilderness Culture Increased awareness about the Strategy. Wilderness Ethics Charter and Codes of Conduct for Cultural Tourism, and Himba, Namibia integration into all cultural tourism Guests visiting Serra Cafema Camp have the activities. opportunity to visit a semi-nomadic Himba family.

70 Wilderness Holdings Limited integrated annual report 2016 We respect and promote our unique Wilderness culture, as well

as those of our employees and neighbouring rural communities. Wilderness About By meaningfully incorporating culture into the organisation as a whole, our operations and guest activities, we hope to positively impact a global culture of respect and care for the environment and all cultures in the areas where we operate.

Wilderness Heritage Day

Celebrated annually at Wilderness’ offices and camps. report Sustainability

Table 13: Ethnic groups represented among our staff and host communities

Botswana Namibia Seychelles South Africa Zambia Zimbabwe baKalanga BaHerero European Afrikaner amaNgoni amaNdebele baKgalagadi baHimba Seychellois amaNdebele baBemba baKalanga baSarwa Damara amaXhosa BaKaonde baLozi baTswana European amaZulu baLozi baTonga BaYei Nama baPedi baTonga European European Ovambo baSotho European maShona

haMbukushu Riemvasmaker baTsonga maChewa governance Corporate Xhanakwe baTswana emaSwati European

Indian

vhaVenda important means and motivation for dancing and storytelling in the camps, • Traditional design and décor: Where communities to care for and maintain allowing them to educate and inform possible and practical, we attempt their heritage and cultural practices. about their traditions and customs. to use traditional architecture, The cultural heritage of a country is Through cultural tourism activities, we building methods and materials the result of its historical evolution aim to give our guests a high-quality in camp design and construction. statements financial Annual and, therefore, plays an important experience which brings satisfaction We also attempt to use local role in determining its identity. At a and enrichment, as well as greater artefacts, such as traditional masks time of increasing globalisation, the knowledge and appreciation of natural and woven basketry, in our camp protection, maintenance, interpretation and cultural heritage, while at the same décor; and presentation of the heritage and time promoting an understanding and • Cultural visits: Where the local cultural diversity of any particular place appreciation of local communities. community is accessible to the or region is an important challenge, camp, local village visits and tours One of our objectives for cultural tourism as well as an opportunity, for people are encouraged and organised in is to communicate its significance and everywhere. line with the Wilderness Ethics the need for its maintenance to host Charter and Codes of Conduct for communities, staff and guests. How we incorporate culture Cultural Tourism (WEC). Such visits occur in most countries and their Culture consists of a number of Below is a list of the main ways culture

nature varies by location; information Shareholders’ dimensions and there are many different is integrated into our business: ways to celebrate these through our • Traditional nights: The majority of • Social soccer: Wilderness and business. First and foremost, employing Wilderness camps have traditional Children in the Wilderness promote staff from different ethnic groups in evenings where guests experience soccer/football clinics to recognise each country brings the Culture C local culture through dance, the influence the game has in host directly into the camps and offices. singing, storytelling and local food. communities. In Africa, soccer/ From here, staff celebrate their culture In many instances, dinner menus football is played in almost every through day-to-day interactions are announced in the local village, no matter how remote; with colleagues and guests, singing, language;

Wilderness Holdings Limited integrated annual report 2016 71 Culture continued

• Storytelling: Local cultural stories and guests, highlighting pre- and and folklore to survive, flourish and are increasingly being used as during-cultural tour procedures and develop, rather than causing them bedtime stories for guests. This will activities. It also includes information to degenerate, become standardised be increased in the next reporting on what culture means to us, and why or lose their authenticity; period, along with storytelling by and how we incorporate this into the • Constructively manage and staff; business. A letter was designed to be continuously engage with host • Cultural maps and other cultural included in guest information prior to communities, including managing information: Information is provided travel to ensure a mutually beneficial expectations, leading to realistic to raise awareness and increase interaction should guests participate goal-setting in terms of tourism and knowledge about the cultures in the in a cultural activity. An infographic on the associated benefits; and the WEC will be developed in the next areas where we operate. Cultural • Encourage donations, either reporting period, which will be available blogs created and disseminated in cash or kind, to be directed on the Wilderness website, on social during the reporting period covered through Children in the Wilderness, media and for distribution to guests, various topics, including drums in Wilderness Wildlife Trust or the agents and staff. Africa, African mythology, and a brief Wilderness Safaris Community reflection on the history of shoes in Development department, all of The community engagement projects Africa; and which have good track records of and experiences entered into by sustainable interventions. • Wilderness Heritage Day: An annual Wilderness must all be sustainable: Wilderness Heritage Day celebration environmentally, ecologically, ethically The role of culture in tourism is still not is held on the last Friday in August, and socially. This requires that we fully understood and is underutilised. when staff are encouraged to wear identify, effectively engage and consult Our internal studies and other traditional/cultural clothing. Each with all the relevant stakeholders for researchers have shown that the region celebrates in different ways, any new project, destination, activity or majority of community members do not for example, cultural storytelling, business. It is vital that their support participate in cultural tourism projects food, dance and singing. is obtained from the outset. The main due to a lack of information about the goals of the Wilderness Safaris Ethics opportunities it can create through Ethics Charter and Codes of Charter and Codes of Conduct for employment and entrepreneurship. Conduct for Cultural Tourism Cultural Tourism are to: Wilderness will, where applicable and • Ensure a high-quality experience Cultural tourism is about immersion possible, develop capacity-building which brings satisfaction and in, and enjoyment of, the lifestyle of programmes for community members enrichment to guests, as well as local people, the local area, and what as a way of creating awareness of constitutes its identity and character. greater knowledge and appreciation the opportunities. Capacity-building programmes should also highlight the The increasing number of tourists, of natural and cultural heritage. potential implications of cultural tourism and their desire to engage with local Cultural tourism must promote an to avoid exploitation of cultural values communities and cultures in the understanding and appreciation by tourism practitioners from outside countries that they visit, necessitated of the local communities and their the community. Capacity building, the development of an Ethics Charter culture; training and awareness raising should and Codes of Conduct for Cultural • Maintain and encourage an include focus on the type of cultural Tourism. This details the kind of appreciation of, and respect for, activities and experiences desired by community engagement and cultural all natural, cultural and aesthetic tourists, including the quality, duration interaction that Wilderness Safaris heritage among our guests, staff, and information required for these would like to promote, to ensure that stakeholders, and within the activities and experiences. there is no exploitation of people and communities with whom we engage; their cultures. Cultural tourism is a • Promote conservation of the natural sensitive subject. Care must be taken by environment from degradation Raising awareness and all staff and guests to ensure that there for curios and artefacts, while information provision: is respect and sensitivity in all forms promoting local crafts over foreign Cultural maps of engagement, and that all involved imports; parties are enriched by the experience. To highlight culture and provide our • Help communities to gain a better Cultural tourism involves any guest guests and staff with the opportunity understanding of tourists and the activity that results in engagement with to learn more about the diverse tourism industry, and to optimise a host community, e.g. a village visit or cultures and ethnic groups in Africa, the benefits that flow to them from cultural/traditional dancing. we have developed cultural maps for tourism; each country. These include a brief A comprehensive version of the • Plan and conduct tourism activities description of each of the main ethnic Wilderness Ethics Charter (WEC) was in such a way as to allow traditional groups, as well as their history and prepared for distribution among staff cultural products, activities, crafts traditions. The map also includes

72 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

photographs of cultural aspects guests Social impacts are largely the result in keeping rural families closer may encounter during visits to our of the immediate effects of cultural together through education and camps, as well as a link to our WEC. tourism on host communities, their employment. We are also developing a booklet – The livelihoods and the way they live, Cultures of Wilderness – which will whereas cultural impacts occur in the Conversely, below are some of the provide more detailed, country-specific long term and may include changes in negative socio-cultural impacts that information relating to cultural activities, social value/morals, behaviours and may arise: practices and diversity. Cultural maps attitudes. • Western influence on cultures: were rolled out in Botswana, Namibia, language, clothes, behaviour, food, report Sustainability Zambia and Zimbabwe in the reporting Below is a list of positive socio-cultural values and interests; period and are distributed to guests in impacts that we believe our business • Negative transitions away from their information packs prior to travel. can and does have on local traditional lifestyles, including communities: alcohol abuse, littering and Potential socio-cultural • Enhances the cultural aspects of an poaching; impacts area, through continued interest • Negative transitions in values, moral in local, cultural and historical conduct, community structural Ecotourism can have varied socio- lifestyles; organisations and practices; cultural impacts, some of which may • Promotes greater awareness and • ‘Demonstration effect’, where locals be ambiguous, with some people acceptance of other cultures; imbibe the behaviours of tourists perceiving impacts as positive, and and experience negative culture others as negative. Our aim is to, • Builds self-esteem, confidence shock; wherever possible, promote positive and pride in one’s community and impacts and mitigate negative ones. oneself; • Resultant impacts from the governance Corporate Cultures are continuously changing and • Strengthens communities through ‘demonstration effect’ on host adapting. Some socio-cultural changes uniting them in a common cause, communities that lead to petty crime may, therefore, be a natural progression, especially through joint ventures; and socially negative behaviours, for example envy or entitlement whereas others may be caused by • Internalises local fashions in art, cultures; increased contact with other cultures clothing, jewellery, language and and their associated different values. music; • Economic and social competition We cannot prevent cultural change between community members, which • Revitalises unique cultural or some form of commodification of could lead to disharmony; and practices, arts, crafts and stories; culture, but feel it is important to aid • Commodification of cultures. sustainable rural development by • Promotes social and rural promoting positive interactions. It is development through employment The Group constantly attempts to avoid also important to educate our guests to creation, income redistribution and and mitigate negative impacts on staff, poverty alleviation; and respect the various cultural groups and guests and local communities through statements financial Annual to encourage our staff to celebrate their • Lessens the migration of youth to raising awareness, sharing information heritage, traditions and ethnic diversity. urban areas, and thereby assists and continuous communication.

Zimbabwe local market Immersive experiences are often available in surrounding villages. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 73 Culture continued

Wilderness Culture Strategy Scope of the strategy: The strategy communities, guests, staff and all covers cultural activities which aim other stakeholders; During the reporting period, a draft to raise cultural pride and respect Culture Strategy was developed, and • Encouragement of tourism among Wilderness staff to share with it will be finalised during the next development in and to host guests, as well as to promote activities reporting period through consultation communities, which is compatible that involve greater host community with all regions and at a Group level. with community cultures, values, member participation wherever lifestyles, and which is economically, This strategic plan aligns with the possible. The strategy covers a broad socially and environmentally visions and goals of Wilderness’ generalised approach to cultural sustainable; and tourism and engagements in the sustainability strategy. The plan allows • Streamlining of communications regions. for the structured and sustainable related to Wilderness cultures growth of cultural tourism as a partner Aim of the strategy: To provide Group and cultural activities to guests, to mainstream wildlife tourism, by and regional administrative guidelines staff, agents and other relevant providing diverse and informative for specific, structured, ethical and stakeholders. guest activities in the camps and local sustainable cultural engagements, villages. The plan discusses the need aimed at increasing cultural tourism for additional Group and regional staff Forced child labour activities and developments in the to be involved in cultural promotion Due to the remote location of most regions; and the dissemination of and awareness, and to highlight Wilderness operations, the majority of relevant and informative cultural particular activities targeted to increase staff are recruited from communities material to both staff and guests. cultural presentations, village visits, living in and around the conservation Short- and long-term objectives will camp and office activities. Focusing areas where our camps are situated. be aligned with these guidelines on these specific areas and projects All staff are above the legal working age thus enabling a more accurate will ensure that cultural tourism and limit in the countries of operation and measurement and analysis of current engagements by guests will make no child labour is employed. levels of cultural tourism activities. The a real and sustainable difference strategy also emphasises the reasons to host communities. Coordinated As part of the cultural tourism why we engage in cultural tourism and administration between Group and experience, a number of the camps its importance to host communities. regional staff, and incisive management offer traditional dancing and other activities, such as singing. These are of cultural tourism, activities and The main strategic goals include: presentations, will increase pride and also available on selected village visits. • To raise the profile of culture within respect amongst the diverse Wilderness The performers may sometimes include Wilderness; employees. This will provide a platform children and the dance groups are to raise awareness and highlight the • Development of cultural content paid for the performances. However, importance of the cultural diversity of and a database of relevant since children are not employed by the people with whom we are partners material on cultures of staff and Wilderness and are not exploited during and whom we employ. This plan is in communities within Wilderness’ the traditional dancing (i.e. they are not informed by an assessment of past scope of operation (See online missing school, do not dance late at Wilderness cultural tourism activities appendices: Table F for a list of night, and perform voluntarily), they do and internal literature reviews with cultural activities on offer near or not fall into the category of child labour. regard to culture, research/educational in our camps); There is therefore no need for measures to eliminate child or forced labour and visits, informal and formal discussions • Encouragement of an appreciation no incidents to report in the period with the staff and other stakeholders of, and respect for, natural, cultural under consideration. involved in cultural tourism. and aesthetic heritage among host

Women’s groups in Botswana

Purchasing local crafts and goods for our camps from Children in the Wilderness Adult Eco-Clubs in Botswana has been a direct way to include local cultural arts and crafts into the camps. These are supplied to guests as gifts, and used in camp decor.

74 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Plans reported on for the 2016 reporting period and progress made on these:

2015 goal Progress

Increase cultural collateral for guests and staff, such as the Ethics Charter and Ongoing progress Codes of Conduct for Cultural Tourism, Country Cultural Booklet and regional news

Seek the best mechanisms for integration of culture into guest and staff day- Ongoing progress to-day activities report Sustainability

Conduct comprehensive data collection on cultural activities and ethnic groups Ongoing progress in our geographic scope and engagement areas

Integrate the Ethics Charter and Codes of Conduct for Cultural Tourism into Roll-out and related trainings in 2016 – 2017 Wilderness practice reporting period

Continue data collection for the socio-cultural research project and Country Ongoing progress Culture Booklet

Work closely with the ‘Culture Champion’ in each country where we operate to Changes were made in terms of staffing during develop cultural objectives. This person would also be responsible for ensuring the reporting period and this will be revised in that all the culture collateral is distributed in their country and that the cultural the next reporting period activities are offered in the camps Corporate governance Corporate Continue to find innovative ways to further integrate the Culture C into our Ongoing progress business through art, sport, competitions, etc

Further plans/goals for 2016 • Roll out WEC and train staff in the regions in its implementation and monitoring. Include guest letter related to cultural tourism in the document packs received by all guests. • Cultural bedtime stories and cultural

proverbs to be included in guest statements financial Annual collateral. • Ongoing development of the Wilderness Culture Booklet. • Ongoing cultural blogs. • Celebration of the annual Wilderness Heritage Day. Shareholders’ information Shareholders’

Local community visit, Zimbabwe Guests can learn more about the lifestyle and livelihood of local people.

Wilderness Holdings Limited integrated annual report 2016 75 Mana Pools UNESCO site, Zimbabwe Aerial view of the Zambezi River and the Rift Valley escarpment of Zambia.

76 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Sustainability report Sustainability

Conservation governance Corporate

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 statements financial Annual 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. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 77 Conservation

In order to manage the Conservation C more effectively, we have divided it into two subsections, giving each the special attention they require. The Biodiversity aspect involves our initiatives to maintain and improve the biodiversity and the ecosystems upon which our operations are based. The Environmental Management Systems (EMS) portion, on the other hand, focuses on our endeavours to ensure that any negative impacts on the environment from our operations are minimised.

Biodiversity Broadly, we view our role in biodiversity Environmental Management conservation as: The Wilderness Group operates in areas Systems (EMS) • Ensuring the sustainable of exceptional wilderness or biodiversity The intention of our EMS is to conservation of wilderness areas quality that enjoy varying degrees of minimise any negative impacts that and their biodiversity through formal protection (including national our operations might have on the the creation of viable ecotourism parks, community conservancies and environment. Our camps are situated businesses, either within formally private land). We believe that, in almost in pristine wilderness areas and, failing protected areas or on community or all cases, our presence has enhanced such intentions, could undermine privately owned land without formal the conservation status of these areas the very attractions upon which our (i.e. state or legislated) protection; and specific species within them. operations are based. We do not believe that there are any • Ensuring that, in appropriate situations where our operations have, circumstances, ecotourism remains EMS comprise mostly our systems to in a direct sense, impacted negatively on the preferred economic alternative manage our camps’ energy usage and biodiversity. Rather, the opposite is the to less sustainable industries such related carbon emissions, water use, case in that the nature of our business as mining, agriculture, hydroelectric waste production and disposal, and is such that a positive impact on schemes and others that irrevocably the usage of materials and products. biodiversity (in the sense of more secure damage biodiversity, wilderness and Minimising any negative impacts on ecosystems and wildlife populations) is ecosystem processes; the environment by our camps creates both an intended outcome and a • Creating a profitable, ethical and a competitive advantage by enhancing by-product of our day-to-day operations. responsible business, based on guests’ experiences. The latter rely on intact ecosystems conservation, that others imitate There are also commercial spin-offs in in order to satisfy guest expectations and implement in regions where we that our camps operate more efficiently around game viewing and other are not active; and experiences. and save on various operational supply • Measuring and understanding and equipment costs. our biodiversity coverage and its management and, where relevant, enhancing indigenous species richness through reintroductions.

Xigera Camp, Botswana Photovoltaic solar plant consisting of 135 solar panels producing 30kW of renewable energy, enough to run the entire camp.

78 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Rwanda Bisate Lodge (opening in

2017) will be built on this report Sustainability hill near the Volcanoes National Park.

Noah’s Ark Project, Seychelles Environmental Manager at work, North Island. Corporate governance Corporate

Rhino Tracking, Namibia Desert Rhino Camp works in partnership with conservation NGO, Save the Rhino Trust. statements financial Annual

Toka Leya Camp, Zambia Toka Leya has a number of initiatives in place to rehabilitate indigenous flora in the area. Shareholders’ information Shareholders’

Mombo Camp, Botswana Mombo is 100% solar powered, with electricity and hot water provided via solar panels, inverters and battery banks.

Wilderness Holdings Limited integrated annual report 2016 79 Biodiversity

A large part of the raison d’être of meet regularly through country visits we encourage repeat business. This has the Wilderness Group is the use of and workshops. At least one annual meant that, as Wilderness has grown our responsible ecotourism model to conservation workshop is held where and spread geographically, we have maximise the conservation (and thus the conservation strategy is discussed sought out areas with complementary tourism) value of the areas in which we and biodiversity and conservation (and non-competing) biodiversity. operate; without the wilderness there is targets assessed. Research priorities no Wilderness. are agreed upon for the coming year, Our current ecotourism model after consultation with government and supports the conservation of a total conservation stakeholders. of 2.3 million hectares (5.8 million Management approach acres). Of this, 2.3% is privately The aspects discussed in this chapter owned while 38.7% is communal land are considered material either due Our biodiversity coverage and the remaining 59% state land to the impacts they have on our The biodiversity coverage of the within national parks, game reserves operations, directly and indirectly, or Wilderness Group is the area of land and other formally protected areas. alternatively due to the reputation risks on which we operate. We believe that Wilderness supports the conservation they may pose for the business. All the our presence in these areas makes a of these land units in one or more of material aspects covered are managed contribution towards the conservation the following ways: of the habitats and wildlife therein. by country-level management in the • By contributing de facto protection Our commercial strategy has, by and six countries (seven, if we include the through presence and monitoring; fledgling operation in Rwanda) in which large, been built around selecting areas • By contributing lease or traversing we operate, with support from Group of operation which ensure that our fees which aid the viability of the resources when needed. portfolio of camps and experiences is complementary. In other words, each existing use/s of the area and In order to roll out the Group’s camp and its associated experiences prevent changes in land-use; and conservation and research strategy should not compete with another in the • Through active conservation and ensure that our conservation and Group, and in fact should complement activities such as anti-poaching, biodiversity targets are achieved, others with which it might be combined in vegetation rehabilitation, country-level environmental an itinerary or safari. In this way, we have reintroduction of indigenous management and Group personnel diversified our product to the extent that species or research.

Key performance indicators (KPIs) The following have been identified as the key performance indicators (KPIs) for the Biodiversity section of the Conservation C:

Up 72% Down 12% Constant at 8 Conservation contribution: Increased Biodiversity coverage: Decreased from Biomes: Remained constant at eight. from P8.7 million in 2015 to P15 million 2.6 million hectares in 2015 to 2.3 million in 2016. hectares in 2016.

Down 22% Down 15% Down 10% Number of research projects supported: Number of collaborations with institutions IUCN Red List species conserved: Decreased from 86 in 2015 to 67 in 2016. and stakeholders: Decreased from 81 in Decreased from 40 species in 2015 to 2015 to 69 in 2016. 36 species in 2016.

* All of the reductions in impact noted above are due to Congo operations no longer being part of the business.

80 Wilderness Holdings Limited integrated annual report 2016 Biodiversity is the basis of life on Earth and enhances ecosystem functioning and resilience to change through maintaining genetic, species and ecosystem diversity. People are dependent on naturally functioning ecosystems for their survival in ways not always apparent or obvious. Wilderness About 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, not least, our own survival as a species.

Botswana

The Okavango Delta offers a huge diversity of flora and fauna. report Sustainability

Table 14: Biodiversity inventory of Wilderness operations* †

Botswana Namibia Seychelles South Africa Zambia Zimbabwe

Birds 417 352 50 254 545 458 Mammals 111 104 1 120 136 104 Reptiles 83 77 12 85 92 75 Amphibians 48 22 5 30 28 35 * Excludes urban areas such as the offices in Johannesburg, Cape Town, Windhoek, Victoria Falls, Livingstone and Mahé. † Please note that this table excludes any data for Rwanda, in spite of the fact that land in that country has been acquired for development of Bisate Lodge. This is because this acquisition has only recently been completed and the necessary data has not yet been compiled. Corporate governance Corporate

This expansion of conservation activities Biomes and extent of presence Figure 40: Composition of the Wilderness across multiple land ownership operational area by biome (%) We operate in eight different biomes types, both within and outside of across the African continent as state-protected areas, indicates the illustrated by Figure 40. More detail can potential of this model to contribute to be found in the online appendices: conservation, particularly on community- Figure A – Biomes of the African owned land. It also underscores the continent, indicating the presence of important responsibility we have to Wilderness camps. continue assisting in the conservation of these areas. In addition, Wilderness camps are located in five out of the eight African A better understanding of our coverage centres of endemism*: Zambezian and potential impacts allows us to Semi-desert 53.2% statements financial Annual Region, Karoo-Namib Region, Cape focus on areas with differing, perhaps Dry woodland 27.6% Region, Afro-montane and Seychelles. Desert 13.0% less formally conserved biodiversity. In A map showing African centres of Moist woodland 5.2% addition, we can use this information endemism and the presence of Afro-montane 0.1% to create conservation ‘bridges’ or Wilderness camps can be viewed online Arid savannah 0.5% ‘corridors’ to ensure genetic sustainability ( online appendices: Figure B – African East African coastal forest 0.3% of sub-populations. This latter initiative Indian Ocean Island 0.1% centres of endemism). has been an important factor behind the Group’s historical expansion into already well-represented ecosystems, while Biodiversity inventory the former has led to us extending our The number of species of vertebrates operation into new areas. occurring on land over which we have influence (through concessions, leases, traversing and other engagements) is presented as a minimum estimate in information Shareholders’ Table 14.

* Centres of endemism are areas that contain a high incidence of endemic species or the ranges of species that have restricted distribution. Centres of endemism can overlap with biodiversity hotspots (areas containing a significant reservoir of biodiversity, threatened with destruction) and are generally considered high priorities for conservation. We have sought new biomes and centres of endemism that host differing arrays of charismatic fauna and flora and are of interest to our guests. As we have grown, this has resulted in us extending our contribution to biodiversity conservation to more and varying ecosystems.

Wilderness Holdings Limited integrated annual report 2016 81 Conservation continued

Inventories of species, as summarised • Does the Group implement or All four species regarded as here, are important for a number of support any actions designed Critically Endangered are monitored reasons: to improve or monitor their wherever they occur across • As a means of measuring ecosystem conservation status? Wilderness concessions. In some health; cases, this monitoring extends to No fewer than 36 species that occur • They can be used to assess the specific research either conducted in our operational areas fall into the conservation importance of specific or supported by the Wilderness three most threatened categories of areas; and Group, while in other cases active the IUCN Red List. Of these, six are conservation actions are implemented • They can (and must) be used to reptiles or amphibians, one fish species, (black rhino translocations; relocation focus conservation actions. 10 are mammals and 19 are birds (see of hawksbill turtle nests when page 7 and the online appendices: For the last two reasons, our biodiversity exposed by spring tides or beach Table D). Four of these species are inventory is cross-referenced with the erosion). Our commitment extends classed as Critically Endangered, ten as IUCN Red List (see online appendices: to five of the ten Endangered species Endangered and 22 as Vulnerable. Table D), particularly the three most recorded in our areas (one of the threatened categories of extant species. ten species is vagrant and active Although only three of these species’ monitoring or research is very It is vital that our tourism operations global populations are regarded by do not compromise the conservation difficult). Monitoring is the main IUCN as increasing (the overwhelming activity conducted by the Group but, status of any species and that, majority, 28 species, are regarded as wherever possible, we contribute for some species, work extends to decreasing), most of the populations active conservation interventions to improving it – this is evident, for occurring on land over which Wilderness example, in our efforts with regard to and research (Seychelles white-eye has influence are either increasing or mist-netting and ringing; wild dog black rhino conservation in Botswana stable. Naturally, Wilderness cannot home range and movement research; (see case study on page 88). We alone claim credit for this, as it is green turtle and hawksbill turtle nest therefore measure our conservation due to the work of many different monitoring). Insofar as Vulnerable achievements (some of which form agencies. What is encouraging, however, species are concerned, active part of our Biodiversity KPIs) through is that wherever possible or practical, monitoring, research or conservation considering the following: we engage in research, monitoring or interventions were conducted on • How many species featured on the active management of those species 12 species during the reporting period. IUCN Red List are present in our that are regarded as either Critically areas of operation?; Endangered, Endangered or Vulnerable. During the reporting period, • What are the trends in populations A map indicating the IUCN Red List conservation work has also been of these species in our areas, species per country can be seen on conducted on Near-Threatened species compared to elsewhere?; and pages 6 and 7. such as white rhino.

Rocktail Camp, South Africa Hawksbill turtles are listed on the IUCN Red List as Critically Endangered.

82 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Water is life Freshwater ecosystems occupy only 0.8% of Earth’s surface, but harbour nearly 6% of all known species, and yet these species and the habitats they rely on are among the most endangered on Earth. Most of the water on Earth (93%) is too salty, frozen in polar ice caps, Sustainability report Sustainability or too deep underground, resulting in less than 1% of all water on Earth being usable by humans.

Many of our camps are within UNESCO World Heritage Sites. Botswana’s Okavango Delta became the 1 000th site inscribed on the UNESCO World Heritage List in June 2014. This illustrates the global importance placed on this unique wetland. Ruckomechi Camp is also located within Mana Pools National Park World Heritage Site and Toka Leya Camp is located in the Mosi-oa-Tunya/Victoria

Falls World Heritage Site. governance Corporate

While conventional wisdom might suggest negative impacts on natural water bodies from commercial endeavours, none of our operations have significantly altered any hydrological system. Instead, we believe that our operations have either impacted positively on these systems, or at least helped maintain their integrity.

Negative impacts that could result from safari camp operations like ours are

related to either: excessive abstraction statements financial Annual relative to the sustainability of the source; accidental discharges of either waste water or fuel; or the use of environmentally harmful chemicals in cleaning or other functions. Our efforts to minimise any such negative impacts are amongst the subjects of our Okavango Delta, Botswana environmental management systems Mokoro down a channel in the Okavango Delta, and discussed on page 78 and in the now a UNESCO World Heritage Site. EMS chapter on pages 90 to 95.

Our operations tend to have positive impacts on water bodies in two main respects. Firstly, the presence of an Shareholders’ information Shareholders’ authentic ecotourism operation that is dependent on the existence of a pristine ecosystem ensures that the integrity of that system is monitored and, where necessary or possible, maintained. Secondly, the existence of such an operation results in higher profile and public exposure for the site, as well as any potential threats to it.

Wilderness Holdings Limited integrated annual report 2016 83 Conservation continued

Biodiversity coverage, However, we have not made the this trend is to look for new areas desired levels of progress in regard to expand our business model. The conservation and impact to the following, mainly due to lack of recently announced expansions into mitigation objectives resources or opportunity: Rwanda and Kenya will assist in this We have previously outlined our • Increase the biodiversity inventories regard. Conversely, objectives have been biodiversity objectives. We have made in our existing areas and extend achieved in the past year in terms of re- real progress in the past year with the these to enable us to better establishing locally extinct populations (Seychelles white-eye population growth following: understand and conserve these continues) and introducing a second areas. This includes continued • Attempt to increase the biodiversity tranche to the founder population of efforts to catalogue cryptic small coverage of our areas of operation; black rhino in the Okavango Delta. • Where commercially viable, expand mammals, amphibians and reptiles across our entire operating area; our ecotourism operations to Enhancing our biodiversity fragmented and endangered biomes • Expand our monitoring and research and ecosystems; initiatives to a greater proportion coverage of IUCN Red List species including • Continue monitoring and, wherever We continually attempt to enhance specific focus on large birds (e.g. feasible, conserving threatened our biodiversity coverage through vultures, cranes, Ludwig’s bustard, species and ecosystems; reintroduction of species and other ground hornbill, secretary bird); direct conservation actions such as • Re-establish or reintroduce locally • Extend biodiversity inventories to anti-poaching, fence patrols, snare extinct populations into their former freshwater fish and other species sweeps, judicious water provisioning and ranges where possible (for example groups; and collaboration and logistical support for a continuing to reintroduce native • Mitigate anthropogenic impacts on wide range of stakeholders. Beyond this, fauna and flora on North Island in biodiversity. we also commit substantial funds and Seychelles); resources to a number of conservation • Introduce a larger founder With Congo no longer forming part of and research projects on specific population of black rhino to the the Group, there has been a reduction species and conservation challenges Okavango Delta; and in biodiversity coverage as well as the or processes. This contribution is made • Maintain bed and vehicle densities number of IUCN Red List species being either through the operating companies at current levels. monitored and our strategy to reverse themselves, the independent Wilderness

The Wilderness Wildlife Trust (WWT)

WWT is an independent entity supported by the Wilderness Group that facilitates fundraising and the disbursement of monies to deserving projects, allowing us to reach more people, wildlife and places, both directly and indirectly. The Wilderness Wildlife Trust supports a wide variety of wildlife management, research and education projects in southern Africa. These projects address the needs of wildlife populations, seek solutions to conserve endangered species and provide education and training for local people and their communities. The Trust focuses its work in three key areas: • Research and conservation; • Community empowerment and education; and • Anti-poaching and management. Conservation contributions from the Wilderness Wildlife Trust (which is dependent on Wilderness Safaris for a large portion of its funding) are listed in a separate column in online appendices: Table E.

84 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

North Island, Seychelles The Seychelles white-eye population has grown from 25 birds to over 100 since the start of the Noah’s Ark Project. Sustainability report Sustainability Corporate governance Corporate

Wildlife Trust, Rhino Conservation During the 2016 financial year, a Although often difficult to quantify in the Botswana, through third parties where minimum of P14.9 million was spent short term, it is important to appreciate we manage or oversee the operation, directly on biodiversity conservation. the conservation outcomes of this work or through generous donations by our Much additional support is given and investment. The longer-running guests and other partners. in-kind, logistical or expert guidance projects (see online appendices: and therefore cannot be included in Table E) have played a meaningful Such contributions are regarded both this figure, which is thus potentially role in: as an opportunity to foster conservation only three quarters of the total sum. • The reintroduction of threatened Annual financial statements financial Annual of Africa’s biodiversity and also as an This contribution should also be species in areas of their former obligation arising from operating in recognised as a voluntary investment range (e.g. black rhino in Botswana); important conservation areas. We aim in biodiversity that does not take into • Growth in the populations of to entrench and improve biodiversity account contractual obligations or day- threatened species that in some conservation across all the areas where to-day operational expenses related to cases have resulted in favourable we operate. As a result, during the tourism (and even biodiversity in the changes in their IUCN Red Listing reporting period we participated in case of sustainability staff salaries, for status (e.g. loggerhead turtle and no fewer than 67 active research and example). green turtle in South Africa and conservation projects across the seven Seychelles); countries of operation (the seventh All other conservation contributions are country being Rwanda, where we do not listed in the “Wilderness” column in the • Enhanced understanding of the conservation ecology of threatened yet have an active tourism operation). online appendices: Table E. However species that has resulted in This entailed collaboration with more where part of the contribution did not improved management of the than 69 independent institutions ranging come directly from Wilderness Holdings’

species either in situ or in external information Shareholders’ from state protected area agencies to bottom line, these amounts are listed areas where they are of more NGOs and academic institutions from separately and marked with an asterisk; pressing conservation concern a wide range of countries, inside and for example, projects managed and (e.g. lion in Botswana and Namibia); outside southern Africa. administered by the Wilderness Group, but where the funds were raised • The confirmation of extant externally through external donors or conservation corridors linking sub- Wilderness’ guests. populations (e.g. elephant, zebra and wildebeest movement studies in Botswana);

Wilderness Holdings Limited integrated annual report 2016 85 Conservation continued

• Efforts to mitigate human-wildlife infrastructure is minimised through • Continued rehabilitation of the conflict (e.g. Human-Carnivore very low bed and vehicle densities vegetation at the camp site and Conflict study in Botswana); relative to other forms of tourism. surrounding area at Toka Leya in • Establishment of biodiversity (The Group operates over a total Zambia. (e.g. vegetation surveys in area of 23 303 km2 with only 1.7 km2 Botswana) and population baselines covered by operational infrastructure, When the site of a camp is shifted or (e.g. wildlife monitoring indices in representing only 0.007%.) This helps a camp operation is decommissioned, all regions); to reduce any potentially negative the site is fully rehabilitated. Wherever roads need to be closed due to • Removal of artificial and impact on biodiversity from activities increasing flood levels in certain areas, anthropogenic causes of wildlife and infrastructure. Any such negative (e.g. Okavango Delta) these roads are mortality and ecosystem impacts are negligible when compared closed off and allowed to rehabilitate rehabilitation (e.g. Victoria Falls to the positive impacts of these unless they are part of a wet season/ Anti-Poaching Unit in Zimbabwe activities, as detailed above. dry season road network that is not in and North Island vegetation See online appendices: Table B a sensitive area. If necessary, active rehabilitation in Seychelles); and for more detail on the operational rehabilitation is carried out by ploughing • An understanding of the potential footprint of the Wilderness Group and our African footprint on pages 6 and 7. up any compacted surfaces, such as impacts of ecotourism-related discontinued airstrips, in order to speed activities. During the reporting period, up the rehabilitation process. rehabilitation work continued in a All projects initiated or supported by the Many camps are constructed with Group are based on producing relevant number of locations: • Alien plant clearing and unpaved paths on the ground or raised conservation outcomes for current wooden walkways and many of the challenges in biodiversity conservation, indigenous plant propagation at North Island in Seychelles; rooms are also on raised platforms. not only within the Group’s operational This allows free movement of animals • At Bisate Lodge site in Rwanda we area but also beyond it in related throughout camp areas and reduces have germinated and propagated ecosystems. the footprint of the camp and soil some 4 500 indigenous trees in compaction. In terms of mitigating and managing our the initial on-site nursery; and impact, the Group’s footprint of camp

Kafue Large Carnivore Project, Zambia

The Greater Kafue Ecosystem (GKE) is home to Zambia’s largest populations of wild dog and cheetah, and the second-largest lion and leopard populations. The Zambia Carnivore Programme (ZCP) assesses the main threats to both carnivores and herbivores in the GKE, and attempts to ensure the sustainability of conservation efforts. The main objectives for this project are to: • Provide key data on large carnivore populations and their prey, as well as threats to them; • Address key threats to large carnivores, their prey and habitat; and • Ensure the sustainability of conservation efforts through education and capacity building.

The project has employed the only field-based veterinary presence in the GKE and these efforts have resulted in the de-snaring of dozens of large carnivores, facilitated by ongoing research on radio-collared groups.

The ZCP intensively monitored nine lion prides and seven coalitions (totalling 64 lions in northern Kafue National Park). Wild dog continued to exhibit different dynamics in 2015, with the resident packs largely disbanded following snaring incidents. New packs formed, several of which were far from any road and required aerial support and extensive trips into roadless areas to locate them and confirm they were snare-free. Intensive predator- prey studies continued, with a focus on puku and impala, and a male cheetah was fitted with a GPS collar. Camera trapping surveys were also continued in northern Kafue National Park, focusing on leopards and their prey.

86 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Hwange Elephant Research Project Sustainability report Sustainability Corporate governance Corporate Annual financial statements financial Annual

The overall aim of the Hwange Elephant Research Project is to gain a better understanding of elephant movements and habitat use in

Zimbabwe’s Hwange National Park, where elephant density is particularly high. This will be achieved by studying the relative contribution information Shareholders’ of resources (water and food), social interactions (dominance hierarchies) and predation risk (by lions) to this key aspect of elephant ecology. Satellite data collected to date has been analysed and has been used to show some key components of movement in elephants, including timing of movement and movement patterns. The data collected indicates that elephant show different patterns of movement, with some covering long distances and leaving the boundaries of the park during the wet season and only moving back during the dry season. During the dry season, the elephants have more localised movements associated with permanent waterholes within the park.

Wilderness Holdings Limited integrated annual report 2016 87 Wilderness Safaris’ Botswana Rhino Reintroduction Project

Wilderness Safaris, together with White rhino relocation: now also been re-established in the the Botswana Government and with Okavango Delta, adding substantial the support of a number of donors, 2001 – 2004 value to world rhino numbers and has been the driving force behind a The first four white rhino – two bulls and population distributions. Indeed, the reintroduction programme that spans two cows – were released in November first birth in this supplementary black over 15 years and has seen healthy 2001, a historic occasion that saw the rhino population was recorded in late founder populations of both black and return of this species to freedom in 2014, with several further births to date. white rhino reintroduced to Botswana’s Botswana. Okavango Delta. The programme is an Once the rhino had been released, the 2015 and onwards exciting example of how the private monitoring programme began. Using The 2015 financial year saw the sector can collaborate with Government state-of-the-art tracking devices, much completion of the largest ever cross- to ensure a future for highly-threatened was learnt about their movements, diet, border translocation of Critically species. and social behaviour. At the same time, Endangered black rhino, in a Wilderness Safaris Rhino Monitoring partnership between Wilderness History of the rhino decline Officers worked together with the Safaris, the Botswana, South African At various times over the last 150 Department of Wildlife and National and Zimbabwean Governments, the years, Africa’s rhino have been heavily Parks Anti-Poaching Unit and the Malilangwe Trust, individuals and exploited for their precious horn. Urgent Botswana Defence Force, to ensure their organisations. This collaborative and effective conservation of both the constant protection. Several further programme has now grown to become southern white rhino (Ceratotherium translocations of white rhino followed one of the most important international simum) and south central black rhino and, in 2004, the first rhino was born in rhino translocations undertaken in the (Diceros bicornis minor) between 1960 the wild in Botswana in at least 15 years. history of conservation, helping bring and 2005 increased the populations to these two species back into parts of 20 000 white and 4 000 black rhino. This Black rhino relocation: their native range. was achieved through a combination of hard work and determination by highly 2003 – 2014 To view more on this programme please organised and well-funded conservation In late 2003, the second phase go to https://youtu.be/oQ0WrloU2rs agencies, combined with assistance of the project was launched – the from the private sector in breeding reintroduction of Critically Endangered and range expansion programmes that black rhino. Just two years after the proved highly effective in increasing white rhino release, in 2003, the first rhino numbers. black rhinos were released back into the wild. Despite at least one birth, By the 1970s, Botswana, on the other the number of animals involved in Wilderness Safaris wins WTTC hand, had suffered a collapse of both this release was too small to form a Tourism for Tomorrow – black and white rhino populations. viable breeding population, and the Environment Award A survey in 1992 showed less than programme spent the next few years 19 white rhino present in the wild, attempting to add to the original few in April 2016 – Wilderness Safaris won while the black rhino was classified order to create an increasing national the World Travel & Tourism Council as “Locally Extinct” in Botswana. This wild herd. (WTTC) 2016 Tourism for Tomorrow led to decisive action by the Botswana Award in the Environment category Government – combating poachers In 2014, after years of complex for its pioneering Botswana Rhino with a zero-tolerance policy and the negotiations, a significant number of Conservation Project. relocation of all surviving rhino to black rhino were captured in South fenced sanctuaries elsewhere in the Africa and released into the wilds of Wilderness Safaris Botswana Rhino country. A substantial piece of the Botswana. This extremely delicate Project wins the Conserve Africa jigsaw of biodiversity was thus absent operation involved the staff of South category at the We Are Africa from areas which were otherwise Africa’s North West Parks and Tourism Innovation Awards 2015 incredibly rich in wildlife. Wilderness Board, SANParks, the Botswana Defence Safaris approached the government Force, Botswana Department of Wildlife May 2016 – Following a vote by all with a proposal to reintroduce black and and National Parks, International Rhino attendees, Wilderness Safaris won white rhino into the Okavango Delta, Foundation and Wilderness Safaris. the best conservation project for its and the Botswana Rhino Reintroduction Thanks to this project, a successful Botswana Rhino Relocation Project. Project was born. founder population of black rhino has

88 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About Distribution Sustainability report Sustainability Recent Range (original populations)

Recent Range (introduced populations) Black rhino: White rhino:

Historical Range

Total African rhino population 1968 – 2020 70 000

60 000 Black rhino Black rhino bull capture in South Africa White rhino 50 000 Wilderness Safaris Group Conservation Manager, Kai Collins, assists with the capture of black rhino 40 000 for translocation. Corporate governance Corporate

30 000

Predicted 20 000

10 000

1970 1980 1990 2000 2010 2020 Annual financial statements financial Annual

Arrival in Botswana Black rhino being offloaded from the aircraft into their new home in Botswana. Shareholders’ information Shareholders’

Black rhino release After spending some time in the boma adjusting to local conditions, this black rhino is released into the wilds of the Okavango Delta.

Wilderness Holdings Limited integrated annual report 2016 89 Environmental Management Systems (EMS)

Figure 41: Average GEMS compliance scores EMS management and

Botswana implementation The various environmental aspects Namibia discussed are managed by regional Seychelles leadership in the six countries in which

South Africa we operate, with technical support provided and oversight exercised by Zambia Group resources. In order to maintain Zimbabwe a high standard of environmental 0 20 40 60 80 100 performance, regional environmental Compliance (%) management and Group resources 2015 2016 Target meet regularly through on-site visits, performance assessments and Group workshops. The updated Group Environmental Minimum Standards (GEMS) were implemented during the Figure 42: Average GEMS compliance scores by environmental performance indicator 2015 financial year, following approval

Energy by the Executive Committee.

Energy management Setting Group Environmental Minimum Water Standards (GEMS) for our camps

Waste We established GEMS for our camps in order to attain and maintain the high Products and detergents environmental standards that enable Boats and us to minimise any negative impact on water systems the environment and also to stand out Fire prevention from our competitors. The GEMS provide Staff village a structured framework by which our Other camps are developed, operated and, if 0 20 40 60 80 100 required, ultimately decommissioned. Compliance (%) Regional management, as well as 2015 2016 Target contractors employed during new builds and refurbishments, are required to use the GEMS as an operating guide and as their minimum standard. The GEMS are updated annually to ensure we are utilising the latest suitable and sustainable technologies and following best practice. Key performance indicators (KPIs)

Down 13% Down to 0.7l Up to 85% Carbon emissions: down by 13% from Bottled water per bednight: down to Group Environmental Management

0.097 to 0.084 tonnes CO2e per bednight 0.7 litres from 2.06 litres in 2012. Systems (GEMS) performance: up to since 2012. 85% compliance from 79% in 2015.

90 Wilderness Holdings Limited integrated annual report 2016 The purpose of our environmental management systems (EMS) is to Wilderness About minimise any negative impacts on the environment that might arise from our operations, since these would undermine the quality of our products and ultimately harm the business.

Kalahari Plains Camp, Botswana

Kalahari Plains Camp runs 100% on solar power, and uses an report Sustainability ancient yet effective water harvesting technique.

Measuring our camps’ environmental Overall, all regions showed a substantial Improvement plans and timelines performance improvement and have achieved To correct the situations where GEMS In order to maintain the environmental the 80% target outlined for the 2016 compliance is below the required integrity of our camps, we evaluate their financial year. However, the evaluation of standard, all regions and camps provide performance against the GEMS every North Island in the Seychelles suggests improvement plans with associated six months. These assessments allow a notable decrease in performance, timelines for each issue highlighted. us to measure our camps according but this is largely attributable to more The timelines are compiled by the to the same standards and help us rigorous evaluation procedures rather Regional Environmental Officers and direct our efforts in instances where than an actual deterioration. Please the relevant Operations Manager regions or camps are not performing refer to the five-year review on the inside in conjunction with the Group as they should. In the current year, we front cover. Sustainability Coordinator, to ensure have made significant progress in this achievable timelines are provided As indicated by the results alongside, governance Corporate regard and achieved our target of 80% and the required capital set aside to staff villages, energy management and compliance, set in 2012. In addition, complete the required improvement water management remain our lowest some performance indicators were or upgrade. These timelines are used scoring areas and, going forward, more reviewed and updated to better reflect to measure our ongoing improvement effort and budget will be allocated their potential environmental impact. and to prioritise which issues require towards improving these and ensuring immediate attention in relation to their they comply with the GEMS. Botswana In 2016, on average the Group was 85% environmental impact and any cost of remains the highest performing region, compliant with our GEMS (up from 79% rectification. in 2015). Figures 41 and 42 illustrate with both South Africa and Namibia the results of the assessments in more showing significant progress as a result detail, indicating which countries and of improved fire and waste management aspects require the most attention. systems and practices. Annual financial statements financial Annual

Hoanib Skeleton Coast Camp, Namibia The camp is 100% solar powered with a full solar plant for electricity and solar geysers for heating water. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 91 Conservation continued

Figure 43: Energy consumption by operational Energy and our carbon Our performance in 2016 type footprint As noted above, by February 2016 10 Wilderness Safaris camps were The vast bulk of energy consumed in operating 100% on solar power, our business is in the form of diesel producing 2 970 kWh (kilowatt hours) fuel used in generators and vehicles per day of usable energy. A further in camps, as well as from aviation gas 36 camps have solar-inverter hybrid and jet fuel used in our aircraft (Figures systems, reducing generator usage by 43 and 44). Our camps are located in about 50%. A number of camps use remote and pristine wilderness areas smaller individual solar arrays for each and delivering diesel to them is a logistical challenge, a significant cost, guest unit or one single larger array to Camps 45% and an environmental risk. Converting run the front of house only, totalling an Offices 10% additional 277 kWh per day of power Wilderness Air 44% to alternate energies, such as solar power, is therefore an obvious way in production. The Company also has which we can make a positive impact 729 solar geysers or solar thermodynamic on the Conservation C, as well as the geysers in place, further reducing reliance Commerce C. on generators or electricity, and saving a total of 2 916 kWh per day. Figure 44: Camp energy consumption by fuel In the 2016 financial year, we continued type with our commitment to reduce our In 2016, we consumed 201 297 GJ of dependence on fossil fuels, through energy (176 334 GJ directly (Scope 1) further investments in solar energy in and 24 963 GJ indirectly (Scope 2)), our camps, aiming to eventually achieve an 18% decrease from the 244 614 GJ carbon neutrality of our operational consumed in 2012. As a result, business (our vehicles and aircraft are over the same period, our carbon excluded from this, since presently there emissions have reduced by 19% from

are no viable or practical alternatives). 17 412 tonnes CO2e to 14 026 tonnes

One of the highlights was the conversion CO2e. However, this year, we have of Vumbura Plains, located in the corrected for and reported on certain Generator diesel 52% northern section of the Okavango Delta additional regional and international Vehicle diesel 28% in Botswana, to 100% solar power (more flights which were previously not LP gas 5% details can be found in the case study accounted for. Taking these additional Petrol 6% below). This brings the number of camps flights into consideration, and correcting Wood 4% in the Group that are completely solar- for the errors in prior year data, our Paraffin 1% powered to 10. In addition, a further total carbon emissions have been Electricity 4% two camps are in the process of reduced by 18% from 17 412 tonnes

being converted to solar power, due CO2e to 14 285 tonnes CO2e. Please refer for completion early in the 2017 to the five-year review on the inside financial year. front cover. Over the last financial year

Vumbura Plains solar installation

In the 2015 financial year, Vumbura Plains was the second largest consumer of generator diesel in the Group, accounting for 13.7% of the total diesel used for the generation of power in all of our camps. The camp generators consumed a total of 187 384 litres of diesel over

the course of the year. This equates to 492.8 tonnes CO2e for

the camp over the year and 0.15 tonnes CO2e per bednight in 2015. In July 2015, Vumbura Plains camp was converted to 100% solar power, with the system being switched over from generator to solar power in August. The installation cost a total of P9 million and consists of 460 x 245 W solar panels and 192 battery banks, producing a combined total of 105 kW. This equates to a total of 630 kWh per day of power production and will result in a saving in generator fuel of approximately P1.8 million (excluding the transport cost to camp) per annum.

92 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

our Group emissions have reduced Figure 45: Group carbon emissions by 7.2%. 2015 Carbon emissions associated with our 2016 camp operations alone decreased by 0 2 500 5 000 7 500 10 000 12 500 15 000 17 500 24% over the five-year reporting period, Tonnes CO e the previously mentioned continued 2 Group CO2e Group CO2e including all commercial solar conversions having played a flights (2016 values)

significant role in this reduction. (If we report Sustainability correct for new camps as well as camp closures, camp carbon emissions have Figure 46: Wilderness Air CO2e per passenger in fact reduced by 27%.)

Botswana As a result of the reduction in generator fuel use, our camps’ energy efficiency Namibia further improved, reducing the carbon emissions per bednight sold by 13% Zambia from 0.097 (in 2012) to 0.084 tonnes Zimbabwe CO2e per bednight in 2016. A slight increase from 2015 has occurred due to 0 0.03 0.06 0.09 0.12 0.15 Tonnes CO e the small reduction in bednights sold 2 while the camps continued operating at 2015 2016 previous levels of activity. Refer to the Corporate governance Corporate five-year review on the inside front cover.

Our Wilderness Air operation achieved a 9% decrease in carbon emissions in 2016, coming on top of the 10% decrease achieved in 2015, largely due to a continued refinement of our flight DumaTau Camp, Botswana circuits. The operation achieved aircraft This camp’s solar conversion systems save 72 tonnes of CO e annually. efficiency (fuel burn per passenger), 2 at an average of 0.09 tonnes per passenger in 2016 (compared to 0.08 tonnes per passenger in 2015),

down from 0.10 tonnes per passenger statements financial Annual in 2013. The country level detail is shown in Figure 46 alongside. The small increase in Namibia is a function of the opening of the new Hoanib Skeleton Coast Camp which has resulted in increased average distances flown by passengers, while the more substantial increase in Zambia resulted from poor performance of a tour series (reflected in reduced passenger loads on flights which have had to be maintained).

Our emissions targets

The cumulative effect of the reductions information Shareholders’ outlined above is that the Group has reduced its overall carbon emissions to

14 285 tonnes CO2e, 5% better than the target of 14 986 tonnes CO2e set in 2012.

Wilderness Holdings Limited integrated annual report 2016 93 Conservation continued

Water consumption Figure 47 illustrates the water usage camps, which is a standard specified in our Okavango Delta camps over the in the GEMS. The formulation of water We operate in a wide variety of last two years. The camps have been reticulation maps for camps is becoming landscapes where water availability grouped according to their location and a prerequisite for all new camps and and quality differ greatly. In many their exposure to the annual inundation. we will be formulating these maps for cases, while the water may be suitable We report on one ‘water’ camp, five our existing camps as stated in the for drinking, it contains high levels of ‘combination’ camps and seven ‘land’ GEMS. The water reticulation maps, calcium which destroys water meters camps. We have used Botswana camps coupled with the water meters, will aid and makes accurate measurement as an illustration, as most of our camps in the quick detection and tracing of of consumption difficult. For this in this region have water meters and can water leaks along the water reticulation reason, not all of our camps are able to provide more accurate data. system. accurately measure water usage and we have therefore not reported on all Our water consumption has shown a The one water camp reported on regions’ direct water consumption. In significant decrease when comparing (Xigera) is smaller and operates at the event that water meters become the three camp types. On a Group level, lower occupancy levels than the viable to measure water in very saline our water usage increased by 39% in the land and combination camps, hence or calcium-rich environments, we will 2016 financial year when compared with the fact that water consumption per install them. However, we do carefully 2015. This apparent increase is actually bednight is higher, as well as total water manage water consumption, and the due to the installation of more water consumption. Average figures were used majority of our camps operate on meters in all regions, which has allowed for the combination and land camps. low-pressure systems and therefore us to accurately record our total monthly use water efficiently. As technology water usage in the camps. Previously, For the practical reasons reported progresses, we have been able to fit many camps made assumptions above, we cannot record water consumption in all camps and therefore water-saving shower heads, tap aerators and/or extrapolations and staff water are unable to report total water and dual flush toilets to all our camps. usage was not taken into account. The consumption across the Group. Previously, this could only be done with slight increase in water per bednight high-pressure systems, which exist in observed below is also a result of the just four camps. installation of more water meters in our

Figure 47: Okavango Delta camp water consumption by environment type

Water camps Combination camps

Land camps 0 2 000 4 000 6 000 8 000 10 000 Consumption (m3) 2015 2016

Figure 48: Bottled water consumption per bednight

Botswana

Namibia

Seychelles

South Africa

Zambia

Zimbabwe 0 1 2 3 Consumption (l) 2015 2016 Maximum threshold

94 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Bottled water Waste with high water tables or alongside rivers, 40% use above-ground sewage Use of bottled water is also a concern for The organic waste and waste water treatment plants (STPs). These systems us, creating environmental challenges from our camps are the most sensitive ensure that there is no contamination of with large amounts of plastic waste as categories to manage, since they are not ground or surface water. The remaining well the carbon emissions associated taken off-site. 60% of our camps (73% in 2012) use with the production of the bottles simple septic tank systems combined With respect to organic waste, the and their delivery from source to our with soakaways. camps. We have installed on-site water majority of our camps (68%) continue to Sustainability report Sustainability purification systems at our camps and use pits where organic waste is allowed Inorganic waste is collected and sent this continues to result in significant to degrade and, once full, are covered off-site to the nearest town or city for reductions in the consumption of bottled with soil. These areas are carefully dumping in landfill, or for recycling. water (53% reduction since 2012), with a managed and designed to make them Recycling opportunities are limited Group average of 0.72 litres per bednight inaccessible to wildlife, but some camps in most of the countries in which we during 2016 (read more in the waste do continue to have problems in this operate, but the last two years have section). Refer to the five-year review on regard. This local disposal reduces the seen both our Botswana and Namibian the inside front cover. need for additional trucks to come into operations begin recycling inorganic our concessions to remove waste. waste, increasing the number of Our goal is to reduce consumption of A further 25% of camps have alternate camps recycling tin, plastic, paper and bottled water to less than 0.5 litres per arrangements, such as local pig farmers glass from just 7% in 2012 to 47% in bednight. This has now been achieved making use of the waste from some 2016. Nonetheless, all of our camps in all countries except Namibia and camps in Namibia and South Africa. already separate their waste, whether Seychelles. These two countries have Three camps use worm farms to manage it is recycled or not, to generate a Corporate governance Corporate both achieved impressive reductions, organic waste. consciousness and an ingrained mindset even though they have not yet achieved that will allow an effortless transition to our targets. We are confident that Waste water requires careful recycling when this is possible. Most of Namibia will achieve this goal in the management, and as a result of many our camps incinerate paper waste on-site next financial year. of our camps being located in areas in order to reduce transport to landfill. Waste oil from our Wilderness Air operation, and the many game drive vehicles in our camps, is carefully managed and disposed of. The oil from the camps is stored in drums in bunded areas (impermeable structures that contain any fuel spills) to ensure no leaks contaminate the environment. This

is then removed from the concessions to statements financial Annual the nearest city, from where it is usually taken to South Africa for recycling. Similarly, used oil from our aircraft is collected and returned for safe recycling.

Our waste goals Our goal is for 60% of our camps to be recycling their inorganic waste by 2017, but this is dependent upon suitable recycling opportunities maturing in Namibia. There are still presently no signs of recycling options in Zimbabwe or Zambia. Shareholders’ information Shareholders’

Toka Leya Camp, Zambia The camp’s back-of-house tour enables guests to gain an understanding of the camp’s eco-friendly initiatives.

Wilderness Holdings Limited integrated annual report 2016 95 Corporate governance

96 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

98 Corporate governance Sustainability report Sustainability 106 Report of the Audit Committee

107 Report of the Remuneration and Nomination Committee

111 Report of the Social, Ethics and Sustainability Committee

112 Global Reporting Initiative (GRI) G4 content index Corporate governance Corporate Annual financial statements financial Annual Shareholders’ information Shareholders’

Kalahari Plains Camp, Botswana Traditional drums form part of the camp décor.

Wilderness Holdings Limited integrated annual report 2016 97 Corporate governance

The Board believes that excellent provide superior levels of performance the rationale is explained under the corporate governance is fundamental to in terms of sustainable returns to all relevant section. ensuring a sustainable and successful stakeholders. The Company takes into business. The Company complies fully consideration not only the interests of Leadership and oversight with the guidelines of the BSE Code the Company and its shareholders but The Company has a unitary Board of Corporate Governance. In addition, the wider environment such as guests, structure. although listing on the BSE only requires suppliers and employees, to name a compliance with King II, the Company few. A representative list of our Keith Vincent is the Chief Executive has voluntarily adopted the principles stakeholders is included on pages Officer and Ami Azoulay is Chief of King III. 14 – 17 of this report. Financial Officer. Derek de la Harpe serves as Commercial Director and This report is prepared in compliance Chief Sustainability Officer. Bame Compliance with King III with the principles of King III. Where the Tumiso is the Group Company Secretary. The Company believes that compliance directors have found it impractical to with recognised best practices will apply certain recommended practices,

The Board is chaired by Parks Tafa who is supported by Michael Tollman as Deputy Chairman. The Wilderness Holdings Limited Board and committees post year-end comprise:

Board of directors

Non-executive directors Chairman Executive directors Parks Tafa Parks Tafa Chief Executive Officer Gavin Tollman Keith Vincent Christophe Vinsonneau Deputy Chairman Michael Tollman Chief Financial Officer Independent non-executive directors Ami Azoulay John Hunt Lead independent director Roux Marnitz Roux Marnitz Commercial Director and Malcolm McCulloch Chief Sustainability Officer Marcus ter Haar Derek de la Harpe Michael Tollman Jochen Zeitz

Damaraland Camp, Namibia Exploring the sandstone ridges of the Torra Conservancy.

Kalahari Plains Camp, Botswana Oryx grazing on the pan in front of camp.

98 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Board committees

Audit Committee Investment Committee Remuneration and Nomination Committee

Malcolm McCulloch (Chairman) Marcus ter Haar (Chairman) Michael Tollman (Chairman) Marcus ter Haar Derek de la Harpe John Hunt Michael Tollman Malcolm McCulloch Roux Marnitz Gavin Tollman Malcolm McCulloch report Sustainability Christophe Vinsonneau Jochen Zeitz

By invitation By invitation By invitation Chairman of the Board Ami Azoulay Chairman of the Board Corporate office management Keith Vincent Corporate office management External audit Group Human Resources Manager

Risk Committee Safety Review Board Social, Ethics and Sustainability Committee

Malcolm McCulloch (Chairman) Roux Marnitz (Chairman) Jochen Zeitz (Chairman) Roux Marnitz Derek de la Harpe Derek de la Harpe Michael Tollman Russel Friedman Dr Holly Dublin Keith Vincent Richard van der Wel John Hunt Corporate governance Corporate Chris Roche

By invitation By invitation By invitation Corporate office management Brian Cartwright Corporate office management Ian du Rand Ron Goatley Keith Vincent Mike Wassung Grant Woodrow

The Board retains full and effective and internal controls, as well as the recommendations because he acts control over the Group and monitors the nomination, orientation and evaluation as a legal adviser to the Group. executive management and decisions of directors. Although the Chairman cannot be in the subsidiary companies. The Board classified as independent in terms of statements financial Annual assumes overall responsibility for the The non-executive directors draw on the governance criteria, the Board is Group and its activities, including risk their experience, skills and business of the view that he brings valuable management and governance. The acumen to ensure impartial and expertise, experience and skills to the Board is also responsible for setting objective viewpoints in decision- Company and will exercise independent the direction of the Group through the making processes and standards of judgement. Furthermore, in accordance establishment of strategic objectives conduct. The Board considers the mix with the recommendations of King III, and key policies. Finally, the Board of technical, environmental, social, Roux Marnitz is a non-executive lead is guided by a Board charter and is entrepreneurial, financial and business independent director (LID) whose supported in its role by the Board skills of the directors to be balanced, main function is to provide leadership committees detailed above. thus enhancing the effectiveness of the and advice to the Board, without Board. detracting from the authority of the The Board charter regulates how its Chairman, when the Chairman has a business is to be conducted. The Keith Vincent is the Chief Executive conflict of interest. The LID also leads charter sets out the responsibilities Officer. The separation of this role of those discussions which deal with the information Shareholders’ of the Board members collectively. CEO from that of the Chairman ensures a succession of the Chairman and the More specifically, the charter confirms balance of authority and precludes any Chairman’s performance appraisal. the Board’s responsibility for the one director from exercising unfettered adoption of strategic plans, monitoring powers of decision-making. To fulfil their responsibilities adequately, of operational performance and directors have unrestricted access to management, determination of policies The Chairman of the Board, Parks timely financial and other information, and processes to ensure the integrity Tafa, although non-executive, is not records and documents relating to of the Group’s risk management independent in terms of King III the Group.

Wilderness Holdings Limited integrated annual report 2016 99 Corporate governance continued

Board and Committee meetings A minimum of four Board meetings are scheduled each financial year to consider strategic and key issues, financial matters, operational performance and any specific proposals for capital expenditure and investment. Additional meetings are convened on an ad hoc basis to consider extraordinary items of importance which may require urgent attention.

For ease of reference, the attendance, independence, classification and length of service of directors has been consolidated in the table below:

Years’ service Remuneration Social, Ethics and (rounded Audit Committee Investment Committee and Nomination Committee Risk Committee Safety Review Board Sustainability Committee 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 2/2 4 2/2 4 2/2 4 1/2 J Hunt 6 6/6 4 2/3 4 2/2 R Marnitz 6 5/6 4 3/3 4 3/3 4 3/3 M McCulloch 11 6/6 4 2/2 4 1/1 4 1/1 4 3/3 M ter Haar 6 5/6 4 3/4 4 2/2 M Tollman 6 4/6 4 3/4 4 3/3 4 1/3 J Zeitz 6 6/6 4 1/1 4 2/2 Non-independent C de Fleurieu 4 3/3 4 1/1 (resigned 30 October 2015) P Tafa 6 5/6 G Tollman 6 4/6 4 2/2 C Vinsonneau 1 1/3 4 1/1 (appointed 1 November 2015) Executive directors A Azoulay 3 6/6 4/4 2/2 3/3 D de la Harpe 6 6/6 4/4 4 2/2 3/3 3/3 4 3/3 4 2/2 K Vincent 11 6/6 3/4 2/2 3/3 4 2/3 2/3 2/2 Other H Dublin N/A 4 2/2 R Friedman N/A 4 2/3 C Roche N/A 4 1/2 R van der Wel N/A 3/3 4 3/3

100 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Years’ service Remuneration Social, Ethics and report Sustainability (rounded Audit Committee Investment Committee and Nomination Committee Risk Committee Safety Review Board Sustainability Committee 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 2/2 4 2/2 4 2/2 4 1/2 J Hunt 6 6/6 4 2/3 4 2/2 R Marnitz 6 5/6 4 3/3 4 3/3 4 3/3 M McCulloch 11 6/6 4 2/2 4 1/1 4 1/1 4 3/3 M ter Haar 6 5/6 4 3/4 4 2/2

M Tollman 6 4/6 4 3/4 4 3/3 4 1/3 governance Corporate J Zeitz 6 6/6 4 1/1 4 2/2 Non-independent C de Fleurieu 4 3/3 4 1/1 (resigned 30 October 2015) P Tafa 6 5/6 G Tollman 6 4/6 4 2/2 C Vinsonneau 1 1/3 4 1/1 (appointed 1 November 2015) Executive directors A Azoulay 3 6/6 4/4 2/2 3/3 D de la Harpe 6 6/6 4/4 4 2/2 3/3 3/3 4 3/3 4 2/2 Annual financial statements financial Annual K Vincent 11 6/6 3/4 2/2 3/3 4 2/3 2/3 2/2 Other H Dublin N/A 4 2/2 R Friedman N/A 4 2/3 C Roche N/A 4 1/2 R van der Wel N/A 3/3 4 3/3 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 101 Corporate governance continued

Independence of directors of conservation, community, culture Conflicts of interest and commerce form the sustainability The independence of directors is On a quarterly basis, the Company platform for the business. The 4Cs reviewed annually by the Remuneration actively solicits from its directors details sustainability platform is discussed on and Nomination Committee following a regarding their external shareholdings page 4 of this report. detailed analysis of the circumstances of and directorships which potentially all independent non-executive directors. could create conflicts of interest The Remuneration and Nomination Director training and while they serve as directors on the Committee has satisfied itself that development Wilderness Board. The declarations these directors meet the criteria for received by the directors are closely All directors are expected to keep independence in terms of King III. scrutinised by both the Chairman and abreast of changes and trends in the Group Company Secretary and the business and in the Group’s are tabled at the beginning of each Newly appointed directors environments and markets. quarterly Board meeting. Where a In terms of the Company’s constitution, conflict arises, directors are required to new directors may only hold office until Board meetings are held at site at least recuse themselves from the discussions. the next annual general meeting, at once a year to familiarise the directors As far as possible, the Company requires which time they will be required to with the operational and environmental directors to avoid any potential conflicts retire and offer themselves for aspects of the business. Training of interest. re-election. Christophe Vinsonneau programmes on directors’ duties and was appointed to the Board on corporate governance are available to 1 November 2015 to replace Charles the directors on request. Share dealings de Fleurieu who resigned from The Company has a share dealing policy the Board on 30 October 2015. Company Secretary to regulate dealings by its directors and applicable employees in the Company’s The Group operates in seven countries shares. Rotation of directors and Company secretaries are appointed Under the Company’s constitution, a in each country to ensure all national No Group director or employee may third of the directors retire by rotation statutory requirements are adhered deal, directly or indirectly, in the each year and are eligible for re-election to. The Group Company Secretary is Company’s shares on the basis of by shareholders at the annual general responsible for providing guidance previously unpublished, price-sensitive meeting. The Remuneration and to the Chairman and directors, both information and during certain “closed Nomination Committee, having concluded individually and collectively, on their periods”. The closed periods include the its assessment, recommends the duties, responsibilities and powers. periods between the Company’s interim re-election of the retiring directors The Group Company Secretary advises and financial year-end reporting times Gavin Tollman, Parks Tafa, Jochen Zeitz on corporate governance as well as and the dates on which the relevant and Christophe Vinsonneau. These compliance with legislation and the results are published, and any time retiring directors are eligible and have BSE and JSE Listings Requirements. when the Company is trading under a offered themselves for re-election at the Through this office, the Group Company cautionary announcement. coming annual general meeting. Secretary is responsible for facilitating the distribution of information in a timely manner. This information includes Audit Committee Retirement items such as agenda items for Board Composition: Malcolm McCulloch There is no set retirement age for meetings, corporate announcements, (Chairman), Marcus ter Haar, executive and non-executive directors. investor communication and any other Michael Tollman The period in office is reviewed on an developments which may affect the individual basis by the Board on the Group. The Board is of the view that All members have been re-nominated recommendation of the Remuneration the Group Company Secretary has the by the Board, subject to shareholder and Nomination Committee. requisite qualifications and expertise. approval at the annual general meeting, to serve on the committee Induction of directors All directors have access to the advice for the financial year ending on of the Group Company Secretary and, 28 February 2017. New directors are provided with an through the office of the Group Company induction programme and materials Secretary, to independent professional The committee operates within defined which deal with directors’ fiduciary advice at the Company’s expense. terms of reference as set out in its duties and introduces the directors charter and the authority granted to to the concept of the 4Cs platform. Sidney Mganga resigned as the Company it by the Board and meets at least The Board believes that sustainable Secretary on 30 June 2016. Bame Tumiso twice a year with more meetings being business practices in the dimensions took over this role on 1 July 2016. held when necessary. The external

102 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

auditors, internal auditors, Chairman, evaluate material transactions granted to it by the Board and meets Chief Executive Officer and Chief and capital expenditure and make at least twice a year. The committee Financial Officer are invited to attend. recommendations to the Board. assists the Board in reviewing the risk The external and internal auditors management process and significant have unrestricted access to the Audit The Investment Committee comprises risks facing the Group. The committee Committee and meet with the committee executive and non-executive directors, sets the Group’s risk strategy in members, without management present, who are appointed by the Board. liaison with the executive directors at least once a year. and senior management. In doing so, report Sustainability The committee operates within defined it makes use of generally recognised terms of reference as set out in the The activities of the Audit Committee risk management and internal control charter and meets at least twice a year. are set out in the Report of the Audit models and frameworks in order Committee on page 106. The Chairman to maintain a sound system of risk of the Audit Committee reports on the Remuneration and management and internal control as committee’s activities at each Board described later in this report. meeting. Nomination Committee Composition: Michael Tollman The Audit Committee ensures that (Chairman), John Hunt, Roux Marnitz, Safety Review Board there is appropriate independence Malcolm McCulloch Composition: Roux Marnitz relating to non-audit services provided (Chairman), Derek de la Harpe, by the external auditors, in accordance The committee is comprised of Russel Friedman, Richard van der Wel with the Group approved policy. independent non-executive directors.

Pre-approved permissible non-audit The Safety Review Board was governance Corporate services performed by the external The committee operates within defined established in January 2012 as a auditors include taxation and due terms of reference as set out in its sub-committee of the Risk Committee diligence services. Prohibited non- charter and the authority granted to to assist that committee with its duties audit services include valuation it by the Board and meets at least relating to safety and associated risks. and accounting work where their twice a year. The Chairman, Chief The Safety Review Board is responsible independence might be compromised Executive Officer and Chief Financial for overseeing overall Group systems by later auditing their own work. Officer may be invited to attend these with respect to accident prevention meetings, but they may not take any and emergency response. Contrary to King III, the Audit part in decisions regarding their own Committee recommends the approval remuneration. The Safety Review Board comprises of the integrated report to the Board executive and non-executive directors in so far as it relates to its activities. The committee is responsible for and senior management, who are These include the details of material making recommendations to the Board appointed by the Risk Committee. matters to be discussed in the report. on the Group’s framework for executive The meeting is also attended by the statements financial Annual Otherwise, the Board has mandated the remuneration and to determine Group’s Aircraft and Flight Safety Sustainability Committee to oversee and specific remuneration packages for Officer who provides a monthly report make recommendations on the content each of the executive directors and to the Safety Review Board. of the sustainability section of the certain senior managers of the Group. integrated report. The role and activities The report of the Remuneration and The committee operates within of the Sustainability Committee are Nomination committee is included on defined terms of reference as set out discussed below. page 107. in its charter and the authority granted to it by the Risk Committee and meets The Chairman of the Audit Committee Risk Committee at least twice a year. The terms of will be available at the annual general reference include: meeting to answer queries about the Composition: Malcolm McCulloch • Ensuring that Group operations work of the committee. (Chairman), Roux Marnitz, develop systems and procedures Michael Tollman, Keith Vincent to prevent accidents from

occurring; information Shareholders’ Investment Committee The Risk Committee comprises • Review of reports on the Group’s Composition: Marcus ter Haar executive and non-executive directors. (Chairman), Derek de la Harpe, The Chief Financial Officer, Commercial accident preparedness, amongst Malcolm McCulloch, Gavin Tollman, Director and senior management are others; Christophe Vinsonneau and Jochen Zeitz also invited to the meeting. • Providing guidance with respect to actions that would further The Investment Committee was The committee operates within reduce accident risk and improve established in February 2013 as defined terms of reference as set emergency reaction procedures; a sub-committee of the Board to out in its charter and the authority and

Wilderness Holdings Limited integrated annual report 2016 103 Corporate governance continued

• Review, test and/or rehearse current • Monitoring compliance with the This opinion is based on the information emergency response procedures Company’s code of conduct; and explanations given by management from time to time to ensure • Monitoring the ethical conduct of and the auditors, and on comments appropriate reaction to major the Company, its executives and by the auditors and the results of their emergencies. senior officials and identification of audit. any violations of ethical conduct; • Oversight of the Whistleblower Directors’ responsibility Social, Ethics and reporting process; for the annual financial Sustainability Committee • The UN Global Company Principles statements Composition: Jochen Zeitz (Chairman), that ‘businesses should work Derek de la Harpe, Dr Holly Dublin, against corruption in all its forms, The directors accept ultimate John Hunt, Chris Roche including extortion and bribery’ as responsibility for the preparation of well as the OECD recommendations the financial statements and related The Sustainability Committee comprises regarding corruption; and financial information that fairly executive and non-executive directors, • Any other matters relating to ethics. represent the state of affairs and the senior management and an external results of the Group. adviser. The committee meets at Accountability and control least twice during the year and more The annual financial statements as set The Board recognises its responsibility out in this report have been prepared in frequently if required. to retain full and effective control over conformity with International Financial the Group to ensure sustainable growth The committee operates within defined Reporting Standards and are based on and to act in the best interests of the terms of reference as set out in its appropriate accounting policies which Group and its stakeholders. The Risk charter and the authority granted to it have been consistently applied and are Committee and Safety Review Board by the Board. The Board believes that supported by reasonable and prudent are dedicated to monitoring the risk sustainable business practices in the judgements and estimates. management process and reporting to dimensions of Commerce, Community, it on the likelihood and impact of risks Culture and Conservation (the 4Cs) materialising, as well as mitigation Risk management form the sustainability platform for initiatives and their effectiveness. the business. The 4Cs sustainability The Board has established a framework to review all strategic risks impacting platform is discussed on page 4 of Furthermore, to enable the directors to the Group. The major risks facing this report. meet their responsibilities, management the Group have been identified and sets standards and implements The South African Companies Act mitigating strategies have been systems of internal control aimed at requires the Company to have a Social implemented, the effectiveness of which reducing the risk of error, fraud or and Ethics Committee. In March 2015, is monitored by the Risk Committee. loss in a cost-effective manner. These after consideration of the mandates These risks have been assessed controls include the proper delegation of the existing committees, it was taking into account the severity of the of responsibilities within a clearly agreed to widen the mandate of the impact on the Group’s business if such defined framework, effective accounting existing Sustainability Committee and identified risks were to come to fruition. procedures and adequate segregation of to rename it the Social, Ethics and Some of the key risks that are identified, duties. The controls are independently Sustainability (SES) Committee. This monitored throughout the Group. All monitored and managed are: process necessitated amendment to employees are required to maintain the • Exchange rate volatility; the mandates of the following existing highest ethical standards in ensuring • Board effectiveness; committees: that the Group’s business practices • Political and/or economic instability • Audit; are conducted in a manner which is in in source markets; • Remuneration and Nominations; all reasonable circumstances beyond • Local health issues; and reproach. • Local climatic or environmental • Sustainability. The directors are of the opinion that issues; In addition to the existing mandate the internal accounting controls are • More restrictive policies and/or of the Sustainability Committee, the adequate, so that the financial records regulation in the countries where newly constituted Social, Ethics and may be relied on for preparing the the Group has lease concessions; Sustainability Committee will now also financial statements and maintaining and look at: accountability for assets and liabilities. • Maintaining service offering.

104 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

The most significant risks have compliance are monitored on an to report instances of corruption, recently been reviewed and ongoing basis. fraud and other forms of unethical incorporated into the Group Risk behaviour. Register to test the effectiveness of Organisational integrity the risk controls. This service is managed by Deloitte’s and ethics Tip Offs Anonymous where absolute The Board is satisfied with the The Group operates on the basis of anonymity is guaranteed. The Social, process of identifying, monitoring and decentralised management across Ethics and Sustainability Committee report Sustainability managing significant risks as well as several countries. All employees are reviews all reported incidences of with the internal controls and systems required to maintain the highest corruption, fraud and other forms that are in place to manage the ethical standards in ensuring that of unethical behaviour. The hotline identified risk and measure the impact the Group’s business practices are is available at our major centres thereof. Accordingly, the Board does conducted in a manner that, in all in Botswana, Namibia, Zimbabwe, not believe it is necessary to appoint circumstances, is above reproach. The Zambia and South Africa. a Chief Risk Officer, as recommended directors believe that the required by King III. ethical standards have been met during Going concern the year under review. The directors’ assessment on the Internal audit The Company has implemented an Group as a going concern is set out on page 116. Internal audit is an independent ‘ethics hotline’ to enable employees appraisal function which examines and evaluates the activities and the governance Corporate appropriateness of the systems of internal control, risk management Busanga Bush Camp, Zambia and governance. Internal audit Watching the sunrise over the Busanga Plains. operates within the authority granted to it by the Audit Committee and the Board.

A risk register process has been completed with emphasis on high risk areas. The register is kept updated and reported on to the Risk Committee at each meeting. The internal audit function is performed in-house and its activities are informed by statements financial Annual the Risk Register and the internal controls identified therein. The Audit Committee oversees the activities of internal audit.

Management reporting The Group has established management reporting disciplines which include the preparation of budgeting forecasts by operating entities. Monthly results and the financial status of operating entities Shareholders’ information Shareholders’ are reported against approved budgets. Profit projections and cash flow forecasts are reviewed regularly, while working capital, borrowing facilities and bank covenant

Wilderness Holdings Limited integrated annual report 2016 105 Report of the Audit Committee

The committee is pleased to present – Maintained a non-audit services Annual financial statements its report for the financial year policy which determines the ended 29 February 2016. The report nature and extent of any non- The Audit Committee has evaluated is presented in accordance with the audit services that Deloitte the consolidated annual financial recommendations contained in King III. & Touche may provide to the statements for the year ended Group; 29 February 2016 and ensured that they The committee operates within defined • Ensured that the Group’s existing comply, in all material aspects, with the terms of reference as set out in its combined assurance model requirements of the Act and appropriate charter and the authority granted to it addresses the significant risks International Financial Reporting by the Board. During the period under facing the Group; Standards. The committee has, review, the following activities, among • Formed an integral component of therefore, recommended the annual others, were carried out: the risk management process and, financial statements for approval to the • Reviewed and commented on the amongst others, monitored: Board. The Board has subsequently annual financial statements and the approved the financial statements, – Financial reporting risks; accounting policies and ensured which will be open for discussion at the – Internal financial controls; that the annual financial statements forthcoming annual general meeting. of the Group comply with all – Fraud risks as they relate to statutory requirements; financial reporting; and Conclusion on fulfilment – Information technology (IT) • Monitored compliance with of duties and obligations accounting standards and legal risks as they relate to financial Given the above, the committee is of requirements; reporting; • Played an oversight role in respect the opinion that it has appropriately • Reviewed the quality and of the internal audit function to addressed its key responsibilities in effectiveness of the external audit ensure its effectiveness; respect of: process, the external auditor’s • Internal control; report to the committee and • Reviewed developments in management’s responses; corporate governance and best • Financial accounting control; practice and considered their impact • Selected stakeholder reporting that • Reviewed interim reports, results and implications on the Group, relates to the Audit Committee; and announcements and other releases and in particular ensured that the of price-sensitive information; • Statutory and regulatory principles of King III are embedded requirements. • Reviewed significant judgements throughout the Group; and/or unadjusted differences • Satisfied itself that the Chief resulting from the audit, as well as Financial Officer is appropriately any reporting decisions made; qualified and experienced to • Recommended the re-appointment fulfil his role and that the Finance Malcolm McCulloch of Deloitte & Touche, F Els and function is suitably resourced and Chairman C Naidoo as the registered skilled to carry out its obligations; independent auditors: and – Set the terms of Deloitte & • Reviewed the text of various Touche’s engagement; reports, including the going concern – Determined the fees to be statement, corporate governance paid to Deloitte & Touche and report and directors’ report for ensured that the fees are fair and inclusion in the integrated equitable; and annual report for year ended 29 February 2016.

106 Wilderness Holdings Limited integrated annual report 2016 Report of the Remuneration and Wilderness About Nomination Committee

The committee is pleased to present • Motivate employees to perform in Remuneration its report for the financial year ended the best interests of the Company The basic element of remuneration 29 February 2016. This report sets out and its stakeholders. is a base salary that is required to the Group’s remuneration philosophy attract and retain a given set of skills, and recommendations in accordance Remuneration levels are positioned competencies and experience. with King III. The report and the relative to other comparable recommendations of the Remuneration organisations, the current economic

Employee benefits and retirement report Sustainability and Nomination Committee will environment, and individuals’ personal funding be submitted to shareholders for performance and the Company’s consideration at the annual general business model. Remuneration Other components of reward are meeting. comprises elements of fixed given to certain employees. These remuneration and performance-based are subject to local competitive (at-risk) remuneration. practice and legislation. The Company Remuneration philosophy provides, where appropriate, through The remuneration philosophy applies Remuneration structure third parties, additional elements of to all Group operations. It is the Group’s compensation: The mix of fixed-to-variable philosophy to: • Life insurance, comprising a remuneration, including the mix of • Appropriately compensate fixed amount or multiple of fixed short- and long-term incentives, differs employees for the services they remuneration; provide the Company; depending on the level of the employee. Senior executives have a larger • Disability insurance, comprising • Attract and retain employees with proportion of their total remuneration an amount to partially replace lost skills required to effectively manage governance Corporate subject to variable performance of compensation during the period of the operations and growth of the the Group. medical incapacity or disability; business; and • Medical benefits, providing reimbursement of supplemental or primary medical expenses including The components of the remuneration structure are detailed below: hospitalisation, facility doctor or Fixed Variable emergency room visits, prescription medication and dental expenses. Short-term incentive (STI) Long-term incentive (LTI) These plans include annual limits Remuneration – annual – three to five years and involve employees cost sharing • Salary One of the following: Wilderness Group 2011 to promote efficient purchasing; and • Retirement savings, comprising • Employee benefits • Annual bonus – cash Share Plan: full or partially matched (with payment of a 13th cheque • Share appreciation • Retirement funding employee) contributions towards statements financial Annual or thereabouts, subject to rights retirement savings, subject to local individual and Company • Performance shares competitive practice and legislation. performance • Travel shop performance- based incentive scheme- Short-term incentives (STI) cash payment dependent Employees have an element of on EBITDA targets STI-based remuneration, comprising one of the following: • Executive incentive scheme – a cash • Annual bonus. An annual bonus payment dependent on is payable at the discretion level of cash earnings of the Company and provides growth achieved by the rewards based on a combination Company and individual of individual and Company

performance performance relative to targets information Shareholders’ set at the beginning of each year. Employees who qualify for an annual bonus do not qualify for the executive incentive scheme or Travel Shop performance-based incentive scheme.

Wilderness Holdings Limited integrated annual report 2016 107 Report of the Remuneration and Nomination Committee continued

• Travel shop performance-based Travel Shop performance-based results in the payment of at-risk incentive scheme. For the year incentive scheme do not qualify remuneration of between 20% under review, all Travel Shop for the annual bonus or executive and 60% of the employee’s fixed employees have individual incentive scheme. package. No payment is made if scorecards with performance • Executive Incentive Scheme. The performance does not achieve measures that are aligned with the executive incentive scheme is threshold levels. Staff who qualify Travel Shop budget and strategy. part of the Company’s short-term for the executive incentive scheme The performance measures are incentive structure and is offered to do not qualify for the annual bonus split into team (60%) and individual executive and senior management. or Travel Shop performance-based (40%) measures. The individual The incentive measures qualitative incentive scheme. must achieve 20/40 for their and quantitative factors on a 30/70 individual performance measure basis. Awards will only be made if Long-term incentive (LTI) to qualify for the individual and/or the Company achieves a minimum team incentive award. The incentive of 15% growth in adjusted EBITDA Wilderness Group 2011 Share Plan award is determined by the compared to the prior period. Shareholders approved the Wilderness performance score gained through a Awards can be further withheld Group Share Plan on 28 March 2011. The performance review process. Awards should the individual not achieve Plan forms part of the Company’s long- will only be made if the Travel Shop the qualitative factors that align term incentive structure and is designed has attained its gross profit budget. values towards the Company’s to reward executive, senior management High performing individuals can 4Cs philosophy. Once 25% growth and key personnel over the long term, receive a maximum incentive of in adjusted EBITDA is achieved, being a three- to five-year period. The three times their monthly salary, the employee can receive the scheme consists of two methods and creating a salary/incentive ratio maximum incentive. Achievement of employees may be issued both or one of 80/20. Staff who qualify for the established performance objectives type of incentive.

The two methods are summarised as follows:

Share appreciation rights Performance shares Method Conditional right to acquire shares at a future Conditional award to receive a specified number date. Value of the shares acquired is calculated of shares at a future date at nil cost. by reference to appreciation in the value of the shares 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 Three years from the date of grant. Vesting fifth anniversary of the grant date, subject to is subject to continued employment with the continued employment and the satisfaction of Group and the satisfaction of the Company Company performance conditions. performance conditions. Exercise period Commences on the vesting date and expires on Not applicable. the sixth anniversary of the date of grant. 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 In the event of a no fault termination, all shares shall vest and become exercisable and then shall vest and become available to be settled shall be settled with effect from the date of with effect from the date of termination of termination of employment. employment. Termination of employment In the event of a fault termination, all rights not In the event of a fault termination, all shares not yet vested shall be cancelled. yet vested shall be cancelled.

108 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

The performance conditions for all the Performance is measured in year awards that have been made to date three; and are: – 15% to 20% annual compounded • Share appreciation rights: 10% growth in HEPS for 100% to annual compounded growth in 200% targeted number of shares. HEPS; Performance measured in year • Performance shares: three. Results between 15% and Sustainability report Sustainability – 12% to 15% annual compounded 20% growth per annum are growth in HEPS for 100% pro-rated. targeted number of shares.

Number of rights and awards granted

Balance at Granted Lapsed Settled Balance at 1 March during the during the during the 29 February 2015 year year year 2016

Executive directors D de la Harpe 619 703 372 342 – – 992 045 A Azoulay 597 040 372 342 – – 969 382

Senior management 4 129 521 2 227 342 (405 118) – 5 951 745 governance Corporate Other 7 698 804 868 338 (1 222 180) – 7 344 962 Total incentive scheme 13 045 068 3 840 364 (1 627 298) – 15 258 134

Opening balances by classification have been restated.

Under the scheme, eligible employees may be awarded performance shares, share appreciation rights, or both. The maximum number of shares attributable to the scheme is 16 170 000. The maximum number of shares that may be acquired by any one participant in the scheme is 0.5% (1 155 000 shares) and in aggregate is 7%.

Movements are as follows:

Share appreciation Performance

rights shares statements financial Annual

At 1 March 2015 • Previously awarded in 2015 8 841 267 4 203 801 • Awarded in 2016 – 3 840 364 • Settled in 2016 – – • Lapsed – Terminations (1 263 864) (363 434) At 29 February 2016 7 577 403 7 680 731 Subsequent to year end • Lapsed – Terminations – – At 31 May 2016 7 577 403 7 680 731

Non-executive directors’ remuneration information Shareholders’ The remuneration for non-executive directors for the year ended 29 February 2016, as set out below, was approved by shareholders at the Company’s annual general meeting on 31 August 2016.

Wilderness Holdings Limited integrated annual report 2016 109 Report of the Remuneration and Nomination Committee continued

Non-executive remuneration for the financial year ending 28 February 2016:

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 Safety Review Board 50 • Chairman of the Social, Ethics and Sustainability Committee 50

Executive directors’ remuneration The directors have not entered into fixed service contracts.

Top earners King III recommends the disclosure of the salaries of the three most highly paid employees other than directors in the Company. We understand that the intention here is to disclose if such salaries are material and of shareholder interest. While Wilderness is committed to the spirit of the recommendation, the Board has decided that it is not necessary, nor in the Company’s interests, to disclose such salaries based on the fact that the salaries are influenced by geographical situation and exchange rates. However, it can provide the assurance that such salaries are below those of executive directors and are market-related.

Employee provident Benefits and medical Shares/ Salaries and bonuses aid options Total Pula Pula Pula Pula Pula

2016 Keith Vincent 2 422 729 1 461 895 96 204 – 3 980 828 Derek de la Harpe* 1 625 844 1 131 148 152 493 1 565 409 4 474 894 Ami Azoulay* 1 389 470 927 907 265 298 1 544 710 4 127 385

* Where directors’ emoluments are paid in Rands, the amounts reflected are the values calculated using an average exchange rate of R1.29 to the Pula.

Employee provident Benefits and medical Shares/ Salaries and bonuses aid options Total Pula Pula Pula Pula Pula

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 3 7 2 6 9 5 7 3 7 7 0 5 2 6 2 5 5 0 206 340 2 579 290

* 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.

Michael Tollman Chairman

110 Wilderness Holdings Limited integrated annual report 2016 Report of the Social, Ethics and Wilderness About Sustainability Committee

The committee is pleased to present its satisfaction that these have not report for the financial year ended been contravened; 29 February 2016. • Oversaw the recognition of the Group’s major stakeholders and the The committee operates within defined engagement therewith; terms of reference as set out in its • Approved the Group’s new strategy charter and the authority granted to it

for sustainability and community report Sustainability by the Board. During the period under engagement; and review, the following activities, among others, were carried out: • Reviewed and recommended to the Board the adoption of the Group’s • Oversaw the Group’s sustainability integrated report (other than the initiatives with the aim of holistically financial reports, which are reviewed integrating the 4Cs into the Group’s and recommended for adoption by business; the Audit Committee). • Oversaw the Group’s engagements with neighbouring communities to ensure these are constructive and rewarding to all parties; • Monitored the implementation of the Group’s ethics and anti- Jochen Zeitz corruption policies and obtaining Chairman governance Corporate

Serra Cafema Camp, Namibia Exploring the Hartmann’s Valley, green after the summer rains. Annual financial statements financial Annual

Toka Leya Camp, Zambia Activities during the annual Children in the Wilderness camp. Shareholders’ information Shareholders’

Shumba Camp, Zambia Hippo pod in the channels of the Busanga Plains.

Wilderness Holdings Limited integrated annual report 2016 111 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. 30 – 33 Aspect: Economic performance Organisational profile G4 – DMA p. 18 – 25; 37; 39 G4 – 3 Front cover G4 – EC1 p. 38; 61 – 63; 133 G4 – 4 p. 6 – 13 Aspect: Market presence G4 – 5 p. 180 G4 – DMA p. 26; 46 G4 – 6 p. 6 – 7 G4 – EC5 p. 52 – 53 G4 – 7 p. 8 G4 – EC6 p. 51 G4 – 8 p. 8 – 17 Aspect: Indirect economic impacts G4 – 9 p. 6; 8 G4 – DMA p. 18 – 25; 56 G4 – 10 p. 50 – 52 G4 – EC8 p. 47; 56 – 66 G4 – 11 p. 54 CATEGORY: ENVIRONMENTAL G4 – 12 p. 11 Aspect: Energy G4 – 13 Front cover flap; p. 30 – 33 G4 – DMA p. 26; p.90 – 91 G4 – 14 p. 104 G4 – EN3 p. 92 G4 – 15 p. 26; 112 – 113; Online G4 – EN6 p. 92 – 93 appendices G4 – EN7 p. 92 – 93 G4 – 16 Online appendices Aspect: Water Identified material aspects and boundaries G4 – DMA p. 26; 94 G4 – 17 Front cover flap G4 – EN8 p. 94 G4 – 18 Front cover flap G4 – EN9 p. 83 G4 – 19 p. 18 – 25 Aspect: Biodiversity G4 – 20 p. 18 – 25 G4 – DMA p. 26; 80 G4 – 21 p. 18 – 25 G4 – EN11 p. 6; 80 – 81; online G4 – 22 p. 39 appendices G4 – 23 Inside front cover G4 – EN12 p. 78; 86; online appendices Stakeholder engagement G4 – EN13 p. 60; 80; 84; online G4 – 24 p. 13 – 15 appendices G4 – 25 p. 13 – 15 G4 – EN14 p. 6 – 7; 82; online appendices G4 – 26 p. 13 – 15 Aspect: Emissions G4 – 27 p. 18 – 25 G4 – DMA p. 26; 92 – 93 Report profile G4 – EN15 p. 92 G4 – 28 Front cover flap G4 – EN16 p. 92 G4 – 29 Online G4 – EN18 p. 92 – 93 G4 – 30 Front cover flap G4 – EN19 p. 92 – 93 G4 – 31 Front cover flap Aspect: Effluents and waste G4 – 32 Front cover flap G4 – DMA p.26; 95 G4 – 33 Front cover flap G4 – EN22 p. 95 Governance Aspect: Compliance G4 – 34 p. 98 – 111 G4 – DMA p. 26; 78 Ethics and integrity G4 – EN29 No fines received G4 – 56 p. 4; 5; 72 Aspect: Transport G4 – DMA p. 26; 78 G4 – EN30 p. 92 – 93

112 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Specific Standard Disclosures Page number (or link) Specific Standard Disclosures Page number (or link) Material aspect: Overall Sub – category: Society G4 – DMA p. 17; 80 Aspect: Local communities G4 – EN31 p. 84; 86; 95; online G4 – DMA p. 26; 44; 56 appendices G4 – SO1 p. 56 – 66; 73 – 74

CATEGORY: SOCIAL G4 – SO2 p. 61; 73 report Sustainability Sub – category: Labour Practices and Decent Work Aspect: Anti – corruption Aspect: Employment G4 – DMA p. 26; 55; 104 – 105 G4 – DMA p. 26; 44 – 46 G4 – SO3 No risks were identified G4 – LA1 p. 52 G4 – SO4 p. 54 – 55 Aspect: Occupational health and safety Aspect: Compliance G4 – DMA p. 26; 46 G4 – DMA p. 26 G4 – LA6 p. 53 – 55 G4 – SO8 Online appendices Aspect: Training and education Sub – category: Product Responsibility G4 – DMA p. 26; 46 Aspect: Product and service labelling G4 – LA9 p. 48 G4 – DMA p. 26 G4 – LA10 p. 46 – 48; G4 – PR5 p. 44 – 45

G4 – LA11 p. 48 Aspect: Customer privacy governance Corporate Aspect: Diversity and equal opportunity G4 – DMA p. 26 G4 – DMA p. 26; 46 G4 – PR8 No complaints were received G4 – LA12 p. 50 – 53 Aspect: Compliance Aspect: Equal remuneration for women and men G4 – DMA p. 55; 98; 125 G4 – DMA p. 26; 46 G4 – PR9 No fines were received G4 – LA13 p. 48 Aspect: Labour practices grievance mechanisms G4 – DMA p. 26; 46 G4 – LA16 p. 54 Sub – category: Human Rights Aspect: Non – discrimination Annual financial statements financial Annual G4 – DMA p. 26; 46 G4 – HR3 p. 54 Aspect: Freedom of association and collective bargaining G4 – DMA p. 26; 46 G4 – HR4 p. 54 Aspect: Child labour G4 – DMA p. 26; 70 G4 – HR5 p. 75 Aspect: Forced or compulsory labour G4 – DMA p. 26; 70 G4 – HR6 p. 75

Aspect: Indigenous rights information Shareholders’ G4 – DMA p. 26; 70; 72 G4 – HR8 p. 54 The full GRI index can be found in the online appendices: Table L.

Wilderness Holdings Limited integrated annual report 2016 113 Annual financial statements

114 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

116 Directors’ responsibility and approval of the 160 Company statement of comprehensive income

annual consolidated and separate financial statements report Sustainability 160 Company statement of financial position 117 Independent auditor’s report 161 Company statement of changes in equity 118 Directors’ report 161 Company statement of cash flows 120 Consolidated statement of comprehensive income 162 Notes to the Company annual financial statements 121 Consolidated statement of financial position 169 Subsidiary and associate companies of Wilderness 122 Consolidated statement of changes in equity Holdings Limited 124 Consolidated statement of cash flows 171 Subsidiary and associate companies of Wilderness Safaris Investment and Finance Proprietary Limited 125 Summary of significant accounting policies 172 Analysis of ordinary shareholders 133 Notes to the consolidated annual financial statements Corporate governance Corporate Annual financial statements financial Annual Shareholders’ information Shareholders’

Toka Leya Camp, Zambia Guest tents overlook the Zambezi River.

Wilderness Holdings Limited integrated annual report 2016 115 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 integrity of the consolidated and forms of risk across the Group. separate financial statements and While operating risk cannot be fully related financial information included eliminated, the Group endeavours to in this report. It is their responsibility minimise it by ensuring that appropriate to ensure that the financial statements infrastructure, controls, systems fairly present the state of affairs of and ethical behaviour are applied the Group and Company as at the end and managed within predetermined of the financial year and the results procedures and constraints. of its operations and cash flows for the year then ended, in conformity The directors are of the opinion, based with International Financial Reporting on the information and explanations Standards. The external auditors are given by management, that the system engaged to express an independent of internal control provides reasonable opinion on the financial statements. assurance that the financial records may be relied on for the preparation The financial statements are prepared in of the financial statements. However, accordance with International Financial any system of internal financial control Reporting Standards and are based can provide only reasonable, and not upon appropriate accounting policies absolute, assurance against material consistently applied and supported by misstatement or loss. reasonable and prudent judgements and estimates. The directors have reviewed the Group’s and the Company’s cash flow forecast The directors acknowledge that they are for the year to 28 February 2017 and, in ultimately responsible for the system the light of this review and the current of internal financial control established financial position, they are satisfied by the Group and place considerable that the Company and Group have or importance on maintaining a strong have access to adequate resources to control environment. To enable the continue in operational existence for the directors to meet these responsibilities, foreseeable future. the Board sets standards for internal control aimed at reducing the risk of The consolidated and separate financial error or loss in a cost-effective manner. statements set out on pages 118 to 168, The standards include the proper which have been prepared on the going delegation of responsibilities within concern basis, were approved by the a clearly defined framework, effective Board on 25 May 2016 and were signed accounting procedures and adequate on its behalf by: segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring the Group’s business is Parks Tafa Ami Azoulay conducted in a manner that in all Chairman Chief Financial Officer reasonable circumstances is above reproach.

116 Wilderness Holdings Limited integrated annual report 2016 Independent auditor’s report to the shareholders Wilderness About of Wilderness Holdings Limited

Report on the financial or error. In making those risk statements assessments, the auditor considers internal control relevant to the entity’s We have audited the consolidated preparation and fair presentation of and separate financial statements of the consolidated and separate financial Wilderness Holdings Limited, which statements in order to design audit comprise the statements of financial procedures that are appropriate in position as at 29 February 2016, the the circumstances, but not for the statements of comprehensive income, purpose of expressing an opinion report Sustainability statements of changes in equity, and on the effectiveness of the entity’s statements of cash flows for the year internal control. An audit also includes then ended, and the notes comprising evaluating the appropriateness of a summary of significant accounting accounting principles used and the policies and other explanatory reasonableness of accounting estimates information, set out on pages 120 to 168. made by management, as well as evaluating the overall presentation of Directors’ responsibility for the the consolidated and separate financial financial statements statements. The Company’s directors are responsible We believe that the audit evidence for the preparation and fair presentation we have obtained is sufficient and of these consolidated and separate appropriate to provide a basis for our

financial statements in accordance audit opinion. governance Corporate with International Financial Reporting Standards and for such internal Opinion control as the directors determine is In our opinion, the consolidated and necessary to enable the preparation separate financial statements present of consolidated and separate financial fairly, in all material respects the statements that are free from material consolidated and separate financial misstatement, whether due to fraud position of Wilderness Holdings Limited, or error. as at 29 February 2016, and of its consolidated and separate financial Auditor’s responsibility performance and consolidated and Our responsibility is to express an separate cash flows for the year then opinion on these consolidated and ended in accordance with International

separate financial statements based Financial Reporting Standards. statements financial Annual on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the Deloitte & Touche audit to obtain reasonable assurance, Certified Auditors about whether the consolidated and separate financial statements are free Practising Member: from material misstatement. FC Els (19980074)

An audit involves performing procedures 25 May 2016 to obtain audit evidence about the amounts and disclosures in the Deloitte & Touche

consolidated and separate financial Assurance and Advisory Services information Shareholders’ statements. The procedures selected Chartered Accountants depend on the auditor’s judgement, Deloitte House including the assessment of the Plot 64518 risks of material misstatement of the Fairgrounds consolidated and separate financial Gaborone statements, whether due to fraud Botswana

Wilderness Holdings Limited integrated annual report 2016 117 Directors’ report

To the members of Wilderness Holdings During the year under review, the office of the Company Secretary, to Limited (Wilderness or the Company) following dividend was paid to independent professional advice at the shareholders: Company’s expense.

Nature of business Declaration date 25 May 2016 Contact details for the South African Wilderness is an investment holding Last date to trade and Botswana Company Secretaries company whose principal subsidiaries ordinary shares are provided on the administrative are invested in safari consulting cum dividend 9 June 2016 information page of this report. (tour operating and destination Record date 17 June 2016 management), transfer and touring Details of subsidiaries (air and road), camp, lodge and safari Amount paid per exploration operations, as well as ordinary share Details of the Group’s interests in its finance and asset management. subsidiaries are set out on pages 169 • Botswana (thebe) 15 to 171 of this report. Wilderness is dedicated to responsible • South Africa (cents) 21 tourism throughout the areas in which Payment date 27 June 2016 Leases we operate. Our goal is to share these As reported in the interim results, the wild areas with guests from all over the leases for certain concessions, including world, while at the same time helping Withholding tax those upon which our Mombo, Little to ensure the future conservation of In terms of the Republic of Botswana Mombo and Xigera camps are located, Africa’s spectacular wildlife heritage Income Tax Act, as amended, expired in mid-2014. and sharing the benefits of tourism with withholding tax amounting to 7.5% was deducted from the gross dividend paid local communities. In terms of existing agreements the to all Botswana residents. Group has certain pre-emptive rights Listings In terms of the Income Tax Act of 1962, over these concessions. The Group The Company has been listed on the as amended, a withholding tax of 15% is waiting for clarification of the Botswana Stock Exchange, with a was deducted from gross dividends mechanisms by which tenure for the secondary inward listing on the paid to all South Africa resident concessions will be determined. Main board of the JSE Limited, since shareholders. 8 April 2010. Material and other resolutions There were no material resolutions The abbreviated name under which the Accounting policies passed by the Company during the year. Company is listed on the BSE and the The Group has adopted certain JSE Limited is “Wilderness” and the new standards, amendments and Company’s Clearing House Code interpretations to existing standards, Shareholder spread is “WIL”. which are effective for the financial year A comprehensive analysis of beginning on 1 March 2015. shareholders, together with a list of Financial results shareholders beneficially holding Stated capital directly or indirectly in excess of 3% Group attributable earnings for the of the ordinary shares of the Company There were no changes in the stated financial year ended February 2016 as at 29 February 2016, is set out on capital of the Company for the year were P74 million (2015: P76 million) page 172 and 173. representing earnings per share of ended 29 February 2016. Full details of 33.00 thebe (2015: 31.35 thebe). the share capital of the Company at Headline earnings per share were 29 February 2016 are contained in 31.03 thebe (2015: 32.49 thebe). note 15 to the financial statements. Full details of the financial position and Directorate and secretary results of the Wilderness Group are set The Board is chaired by Parks Tafa out in these financial statements. who is supported by Michael Tollman as Deputy Chairman. Keith Vincent is Dividends the Chief Executive Officer. The Group Dividends are proposed and approved Company Secretary is responsible for by the Board of Directors of the providing guidance to the Chairman Company. In the event that a dividend and directors, both individually is declared, it is envisaged to declare and collectively, on their duties and a final dividend in May/June each year responsibilities. All directors have due to the annual cashflow cycle of the access to the advice of the Group business. Company Secretary and, through, the

118 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Directors’ interests in shares At 29 February 2016, the directors of the Company during the year held direct and indirect interests in 161 751 008 of the Company’s issued ordinary shares (2015: 160 951 008). Details of shares held per individual director are listed below:

Direct Indirect Direct Indirect non– non– beneficial beneficial beneficial beneficial Total %

2016 report Sustainability Executive directors Ami Azoulay 77 054 – – – 77 054 <0.1 Derek de la Harpe 73 428 – – – 73 428 <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 10 063 593 800 000 – – 10 863 593 4.68 Gavin Tollman – – – 80 503 570 80 503 570 34.72 Christophe Vinsonneau – – – 58 027 662 58 027 662 25.02 Corporate governance Corporate Jochen Zeitz 2 310 000 – – – 2 310 000 1.00 Total 12 384 593 800 000 – 138 531 232 151 715 825 65.43 Total executive and non-executive directors’ interests 22 419 776 800 000 – 138 531 232 161 751 008 69.76

2015 Executive directors Ami Azoulay 77 054 – – – 77 054 <0.1 Derek de la Harpe 73 428 – – – 73 428 <0.1 Keith Vincent 9 884 701 – – – 9 884 701 4.26 Total 10 035 183 – – – 10 035 183 4.33 Annual financial statements financial Annual Non-executive directors Charles de Fleurieu – – – 58 027 662 58 027 662 25.02 John Hunt 11 000 – – – 11 000 <0.1 Malcolm McCulloch 10 063 593 – – 10 063 593 4.34 Gavin Tollman – – – 80 503 570 80 503 570 34.72 Jochen Zeitz 2 310 000 – – – 2 310 000 1.00 Total 12 384 593 – – 138 531 232 150 915 825 65.08 Total executive and non-executive directors’ interests 22 419 776 – – 138 531 232 160 951 008 69.41 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 119 Consolidated statement of comprehensive income for the year ended 29 February

2016 2015 Notes P’000 P’000

Revenue 3 935 087 944 586 Cost of sales (276 186) (301 972) Gross profit 658 901 642 614 Other gains and losses 374 7 056 Operating expenses (486 206) (476 072) Net foreign exchange gains 4 26 241 8 103 Operating profit for the year before items listed below (EBITDA) 199 310 181 701 Net impairment reversal/(loss) 4 796 (10 175) Depreciation and amortisation 4 (64 736) (55 896) Operating profit 4 135 370 115 630 Interest received 1 460 2 501 Financing costs 5 (5 748) (7 108) Unrealised foreign exchange loss on loans (12 215) (6 519) Share of earnings for equity-accounted investments, net of tax 11 1 502 4 191 Profit before taxation 120 369 108 695 Taxation 6 (46 241) (32 463) Profit for the year 74 128 76 232 Other comprehensive (loss)/income (11 824) 9 106 Items that may be subsequently reclassified to profit or loss: Exchange differences on translating foreign operations (11 824) 9 106 Total comprehensive income for the year 62 304 85 338

Profit for the year attributable to: Owners of the Company 76 525 72 611 Non-controlling interest (2 397) 3 621 74 128 76 232

Total comprehensive income for the year attributable to: Owners of the Company 62 325 81 704 Non-controlling interest (21) 3 634 62 304 85 338

Earnings per share (thebe) – Basic 7 33.00 31.35 – Diluted 7 31.60 30.55

120 Wilderness Holdings Limited integrated annual report 2016 Consolidated statement of financial position Wilderness About as at 29 February

2016 2015 Notes P’000 P’000

ASSETS Non-current assets 554 950 505 514 Property, plant and equipment 8 483 688 424 634 Goodwill 9 32 901 34 664 Sustainability report Sustainability Intangible assets 10 10 743 14 683 Investment in associates 11 10 100 9 598 Deferred tax assets 12 17 518 21 935 Current assets 378 621 410 907 Inventories 13 24 442 23 480 Trade receivables 14 21 593 21 255 Other receivables and prepayments 73 930 76 817 Current tax receivable 9 525 6 155 Cash and cash equivalents 249 131 283 200

Total assets 933 571 916 421 Corporate governance Corporate EQUITY AND LIABILITIES Equity attributable to owners of the Company 481 287 449 026 Stated capital 15 156 086 156 086 Foreign currency translation reserve 5 733 19 933 Common control reserve (73 324) (73 324) Other non-distributable reserves 19 318 21 599 Share-based payment reserve 23 051 15 435 Retained income 350 423 309 297 Non-controlling interest (11 759) (4 995) Total equity 469 528 444 031 Non-current liabilities 72 411 89 376 statements financial Annual Long-term liabilities 16 43 423 60 567 Deferred tax liabilities 12 28 988 28 809 Current liabilities 391 632 383 014 Trade and other payables 17 342 989 332 502 Current tax liabilities 1 477 1 229 Bank overdrafts 18 47 166 49 283

Total liabilities 464 043 472 390 Total equity and liabilities 933 571 916 421 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 121 Consolidated statement of changes in equity for the year ended 29 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 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 Non-controlling interests’ portion of dividend paid – – – – – – – (3 919) (3 919) Total comprehensive income for the year – (14 200) – – – 76 525 62 325 (21) 62 304 Dividends paid – – – – – (34 782) (34 782) – (34 782) Transfer from distributable reserves to re-insurance reserve – – – 617 – (617) – – – Acquisition of additional interest in subsidiary company – – – (4 845) – – (4 845) (877) (5 722) Disposal of subsidiaries – – – 1 947 – – 1 947 (1 947) – Share-based payments expense – – – – 7 616 – 7 616 – 7 616 Balance at 29 February 2016 156 086 5 733 (73 324) 19 318 23 051 350 423 481 287 (11 759) 469 528

122 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

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 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) report Sustainability 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) Corporate governance Corporate Balance at 28 February 2015 156 086 19 933 (73 324) 21 599 15 435 309 297 449 026 (4 995) 444 031 Non-controlling interests’ portion of dividend paid – – – – – – – (3 919) (3 919) Total comprehensive income for the year – (14 200) – – – 76 525 62 325 (21) 62 304 Dividends paid – – – – – (34 782) (34 782) – (34 782) Transfer from distributable reserves to re-insurance reserve – – – 617 – (617) – – – Acquisition of additional interest in subsidiary company – – – (4 845) – – (4 845) (877) (5 722) Disposal of subsidiaries – – – 1 947 – – 1 947 (1 947) – Share-based payments expense – – – – 7 616 – 7 616 – 7 616 Balance at 29 February 2016 156 086 5 733 (73 324) 19 318 23 051 350 423 481 287 (11 759) 469 528 Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 123 Consolidated statement of cash flows for the year ended 29 February

2016 2015 Notes P’000 P’000

Cash flow from operating activities Cash generated from operations 26 184 423 157 090 Interest received 1 460 2 501 Financing costs (5 748) (7 108) Taxation paid 27 (45 113) (21 684) Net cash inflow from operating activities 135 022 130 799

Cash flow from investing activities Acquisition of subsidiary companies 28 – (313) Disposal of subsidiary companies 29 – 1 495 Additional investment in subsidiaries (299) (580) Additions to property, plant and equipment 30 (131 366) (98 598) Additions to intangible assets (431) (585) Proceeds on disposal of property, plant and equipment and intangibles 2 826 5 325 Cash flows from associates 1 000 910 Net cash outflow from investing activities (128 270) (92 346)

Cash flow from financing activities Non-controlling interests' share of dividends (3 919) (2 208) Dividends paid (34 782) (23 100) Repayment of long-term liabilities (56 999) (47 759) Increases in long-term liabilities 31 021 3 408 Net cash outflow from financing activities (64 679) (69 659)

Net decrease in cash and cash equivalents (57 927) (31 206) Unrealised exchange gain on foreign cash balances 25 975 14 404 Cash and cash equivalents at beginning of year 233 917 250 719 Cash and cash equivalents at end of year 31 201 965 233 917

124 Wilderness Holdings Limited integrated annual report 2016 Summary of significant accounting policies Wilderness About for the year ended 29 February

The principal accounting policies 1. Significant accounting based on the satisfaction of each of the applied in the preparation of these estimates and judgements performance obligations. Where the separate and consolidated financial Group acts as an intermediary on behalf statements are set out below. These In preparing the annual financial of third parties, it recognises revenue policies have been consistently applied statements, management is required based on the commission structures to all years presented, unless otherwise to make estimates and assumptions agreed upon. stated. believed to be reasonable that affect the amounts presented in the Group The nature of the goods and services Basis of preparation and annual financial statements and related provided by the Group is such that they report Sustainability disclosures. Use of available information are delivered at times over a period of measurement and the application of judgement are time and sometimes at a point in time. Statement of compliance inherent in the formation of estimates. However, due to the short period of Actual results in the future could The consolidated financial statements time over which such delivery occurs, all differ from these estimates which may of Wilderness Holdings Limited at and revenue is accounted for on the basis of be material to the annual financial for the year ended 29 February 2016 delivery at a point in time. statements. comprise those of the Company and Trade receivables and loans and its subsidiaries (together referred to Significant accounting estimates and receivables as the Group) and the Group’s interest judgements include: in associates and joint arrangements. The Group assesses trade receivables The separate and consolidated financial Revenue from contracts with and loans for impairment at each statements have been prepared in customers reporting date. In determining whether accordance with International Financial an impairment loss should be recorded Reporting Standards (IFRS). The Group recognises revenue when it in profit or loss, the Group makes governance Corporate satisfies a performance obligation by judgements as to whether there is Basis of measurement transferring a promised good or service observable data indicating a measurable to its customer. The transfer occurs The separate and consolidated financial decrease in the estimated future cash at a point when the customer obtains statements are prepared on the flows from a receivable, the timing utility of the good or service. This is historical cost basis except for certain and quantum of estimated future cash determined by assessing, based on items which have been measured at fair flows and an appropriate discount rate the terms of the contract entered into, value in accordance with IFRS. to determine the present value of such the extent of the performance that is cash flows. required of the Group and determining Functional and presentation whether the goods and services to Impairment testing for goodwill and currency be delivered are distinct. Goods and Items included in the financial services are considered to be distinct if non-monetary assets statements of each of the Group’s the customer can benefit from the good The recoverable amounts of cash- Annual financial statements financial Annual entities are measured using the currency or service either on its own or together generating units and individual of the primary economic environment with resources that are readily available non-monetary assets are determined in which the entity operates (functional to the customer and the Group’s based on the higher of value-in-use currency). The consolidated and promise to transfer the good or service calculations and fair values less cost to separate financial statements are can be identified separately from other sell. These calculations require the use presented in Botswana Pula (rounded to promises made in the contract. of estimates and assumptions. the nearest thousand unless otherwise stated), which is the Group’s functional Based on the foregoing, the Group The Group reviews and tests the carrying and presentation currency. deems contracts entered into with value of assets when events or changes customers that involve the sale of in circumstances suggest that the Changes in accounting policies and leisure travel experiences at the Group’s carrying amount may not be recoverable. comparability own properties where such properties In addition, goodwill is tested on an are located in remote locations to be a annual basis for impairment. Assets The Group has adopted certain single performance obligation on the are grouped at the lowest level for Shareholders’ information Shareholders’ new standards, amendments and basis that each item is highly dependent which identifiable cash flows are largely interpretations to existing standards on other items that make up the bundle independent of cash flows of other which are effective for the financial year of goods and services sold. Performance assets and liabilities. Estimates are beginning on 1 March 2015. obligations arising on contracts entered prepared of expected future cash flows into involving properties that are located for each group of assets. Expected future The adoption of amendments to other in urban and peri-urban locations as cash flows used to determine the value standards has not had any material well as from third party properties are in use of goodwill and tangible assets are impact on previously reported figures. dealt with as distinct obligations and the inherently uncertain and could materially revenue arising therefrom recognised change over time.

Wilderness Holdings Limited integrated annual report 2016 125 Summary of significant accounting policies continued for the year ended 29 February

1. Significant accounting liabilities in the period in which such Where the Group provides a service estimates and judgements determination is made. on behalf of third parties, revenue is recognised as the amount of service continued The Group recognises the net future tax fees receivable as determined based Useful lives and residual values of benefit related to deferred tax assets on the agreement entered into with the property, plant and equipment and to the extent that it is probable that principal party in the arrangement and intangible assets with finite useful the deductible temporary differences such revenue is accounted for at the lives will reverse in the foreseeable future. point at which the service is provided. Assessing the recoverability of deferred Residual values of buildings, motor tax assets requires the Group to vehicles and aircraft are based on current Consolidation and business make significant estimates related to estimates of the value of these assets combinations expectations of future taxable income. at the end of their useful lives. The Estimates of future taxable income Subsidiaries estimated residual values and useful are based on forecast cash flows Subsidiary undertakings, which are lives of buildings and motor vehicles from operations and application of those companies over which the Group, have been determined by the directors existing tax laws in each jurisdiction. directly or indirectly, has control, have based on industry experience, as well as To the extent that future cash flows been consolidated. The Group controls anticipation of future events that could and taxable income differ significantly an entity when it is exposed to, or impact these estimates. The estimated from estimates, the ability of the Group has rights to, variable returns from its residual values and useful lives of aircraft to realise the net deferred tax assets investment with the entity and has the have been determined by the directors recorded at the reporting date could be ability to affect those returns through based on industry experience, the impacted. its power over the entity’s activities. manufacturers’ recommendations and Subsidiaries are consolidated from other available marketplace information, 2. Accounting policies the date on which effective control is including but not limited to aviation transferred to the Group and are de- bluebook valuations. Revenue consolidated from the date when there Revenue comprises the consideration is a loss of control by the Group. Useful lives of intangible assets with received or receivable on contracts finite useful lives are reviewed on an entered into with customers for the sale All inter-company transactions, annual basis to determine whether there of goods and services in the ordinary balances, income and expenses and is any indication that the useful life may course of the Group’s activities. Revenue unrealised surpluses and deficits on have changed or that the assets may is shown net of taxes and discounts and transactions between Group companies have suffered an impairment loss. If any is recognised as and when the Group have been eliminated. Intragroup such indication exists, the recoverable satisfies its performance obligations as losses may indicate an impairment that amounts of the assets are estimated set out in the contracts entered into with requires recognition in the consolidated in order to determine the extent, if any, financial statements. its customers. Revenue is recognised of any impairment loss. The estimated at the amount of the transaction price useful lives of intangible assets with On acquisition, the assets and that is allocated to each performance finite useful lives have been determined liabilities of a subsidiary are measured obligation and this is determined at an by the directors based on industry at fair value determined at the date amount that depicts the consideration experience, as well as anticipation of of acquisition. To the extent that the to which the Group expects to be future events that could impact these purchase consideration exceeds the entitled in exchange for transferring estimates. fair value of the identifiable net assets the goods and services promised to the acquired, the difference is recognised customer. Revenue recognised excludes Taxation as goodwill. Where the identifiable net all amounts collected on behalf of third assets acquired exceed the purchase Judgement is required in determining parties such as when the Group acts in consideration, the excess is recognised the provision for income taxes due to an agency capacity and when it collects immediately as a gain on a bargain the complexity of legislation. There are value added taxes. purchase in profit or loss. many transactions and calculations for which the ultimate tax determination The Group arranges leisure travel The Group recognises any non- is uncertain during the ordinary course experiences for its customers at controlling interest in the acquiree on an of business. The Group recognises properties that it owns as well as acquisition-by-acquisition basis, either liabilities for anticipated tax charges properties that are owned by external at fair value or at the non-controlling based on estimates of whether parties. It also provides transfer interest’s proportionate share of the additional taxes will be due. Where the services to travellers. Revenue is recognised amounts of the acquiree’s final tax outcome of these matters is recognised when services are provided identifiable net assets. different from the amounts that were to the customer from the date of initially recorded, such differences will commencement of the travel experience In the Company’s separate annual impact the income tax and deferred tax or when the transfer service is provided. financial statements, investments in

126 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

subsidiaries are carried at cost less any Unrealised gains on transactions denominated in foreign currencies accumulated impairment. between the Group and its associates are and measured at fair values determined eliminated to the extent of the Group’s in foreign currencies are translated at The cost of an investment in a subsidiary interest in the associates. Unrealised the rates prevailing at the date when is the aggregate of: losses are also eliminated unless the fair value was determined. • The fair value, at the date of the transaction provides evidence of exchange, of assets given, liabilities impairment of the asset transferred. Any Assets and liabilities of foreign incurred or assumed, and equity impairment losses are deducted from operations are translated to Pula at

instruments issued by the Company; the carrying amount of the investment in the rates prevailing on the reporting report Sustainability plus associate. Distributions received from the date. Income and expense items are translated at average exchange rates • Any costs directly attributable to the associate reduce the carrying amount of (unless this average is not a reasonable purchase of the subsidiary. the investment. approximation of the cumulative An adjustment to the cost of a business Any excess of the cost of acquisition effect of the rates prevailing on the combination contingent on future events over the Group’s share of the net transaction dates, in which case income is included in the cost of the combination fair value of the identifiable assets, and expenses are translated at the if the adjustment is probable and can be liabilities and contingent liabilities of rate on the dates of the transactions). measured reliably. the associate recognised at the date All resulting exchange differences are of acquisition, is recognised within the recognised as a separate component of The Group applies a policy of treating carrying amount of the investment and equity with movements between periods transactions with non-controlling is assessed for impairment as part of the recognised in other comprehensive interest which do not result in a change total carrying amount when required. income. in control as transactions with equity Corporate governance Corporate owners of the Group and recognises The excess of the Group’s share of On the disposal of a foreign operation such transactions directly in equity. the net fair value of an associate’s (that is, a disposal of the Group’s entire interest in a foreign operation, or a identifiable assets, liabilities and disposal involving loss of control over Associates contingent liabilities over the cost is a subsidiary that includes a foreign An associate is an entity in which the excluded from the carrying amount of operation, a disposal involving loss of Group has significant influence but the investment, and is instead included joint control over a jointly controlled not control, generally accompanying a as a gain on a bargain purchase entity that includes a foreign operation, shareholding of between 20% and 50% recognised in profit or loss in the period or a disposal involving loss of significant of the voting rights. Significant influence in which the investment is acquired. is the power to participate in the influence over an associate that includes financial and operating decisions of the In the Company’s separate annual a foreign operation), all of the exchange entity but is not control or joint control financial statements, an investment in differences accumulated in equity in over those policies. an associate is carried at cost less any respect of that operation attributable to

accumulated impairment. the equity holders of the company are statements financial Annual Investments in associates are accounted reclassified to profit or loss. for using the equity method of Foreign currency translations accounting and are initially recognised In the case of a partial disposal Items included in the financial at cost, except when the asset is that does not result in the Group statements of each of the Group’s classified as held-for-sale. Under the losing control over a subsidiary that entities are measured using the currency equity method, the Group’s share of includes a foreign operation, the of the primary economic environment the post-acquisition profits or losses of proportionate share of accumulated in which the entity operates (functional associates is recognised in profit or loss, exchange differences is re-attributed currency). The consolidated and and its share of post-acquisition other to non-controlling interests and is not separate financial statements are comprehensive income is recognised in recognised in profit or loss. For all other presented in Pula which is the Group’s other comprehensive income. partial disposals (that is, reductions presentation currency. in the Group’s ownership interest in When the Group’s share of losses in an associates or jointly controlled entities Transactions in currencies other than that do not result in the Group losing associate equals or exceeds its interest information Shareholders’ in the associate, the Group does not the functional currency are initially significant influence or joint control) the recognise further losses, unless it has recorded at the rates of exchange proportionate share of the accumulated incurred obligations or made payments ruling on the dates of the transactions. exchange difference is reclassified to on behalf of the associate. At each reporting date, monetary profit or loss. assets and liabilities denominated The use of the equity method is in such currencies are translated to Goodwill arising on the acquisition of discontinued from the date the Group the functional currency at the rates a foreign operation is treated as an ceases to have significant influence over prevailing on the reporting date. asset of the foreign operation and is an associate. Non-monetary items that are translated at the reporting date rate.

Wilderness Holdings Limited integrated annual report 2016 127 Summary of significant accounting policies continued for the year ended 29 February

2. Accounting policies significant in relation to the total cost of the leased property or the present value continued the item is depreciated separately. of the minimum lease payments. Property, plant and equipment The depreciation charge for each period Each lease payment is allocated The cost of an item of property, plant is recognised in profit or loss, unless between the liability and finance charges so as to achieve a constant rate and equipment is recognised as an it is included in the carrying amount of on the finance balance outstanding. The asset when: another asset. corresponding rental obligation, net of • It is probable that future economic The assets’ residual values, useful lives the finance charges, is included in other benefits associated with the item and depreciation methods are reviewed long-term payables. will flow to the Group; and and adjusted if appropriate, at each The interest element of the finance • The cost of the item can be reporting date. An asset’s carrying cost is charged to the statement of measured reliably. amount is written down immediately comprehensive income over the lease to its recoverable amount if the asset’s period so as to produce a constant Cost includes cost incurred initially to carrying amount is greater than its periodic rate of interest on the remaining acquire or construct an item of property, estimated recoverable amount. balance of the liability for each period. plant and equipment and costs incurred The property, plant and equipment subsequently to add to or replace part Gains and losses on disposals are acquired under finance leases are of an asset, or major overhaul costs. determined by comparing proceeds with depreciated over the shorter of the useful If a replacement cost is recognised the carrying amount. These are recorded life of the asset or the lease term. in the carrying amount of an item of in profit or loss. property, plant and equipment, the Leases where a significant portion of carrying amount of the replaced part Intangibles the risks and rewards of ownership are retained by the lessor are classified as is derecognised. All other repairs and Costs incurred on development of operating leases. Payments made under maintenance are charged to profit or intangible assets are capitalised when loss when incurred. operating leases (net of any incentives cost can be measured reliably, the from the lessor) are charged to the The initial estimate of the costs of product is technically and commercially statement of comprehensive income on dismantling and removing the item and feasible, future economic benefits a straight-line basis over the period of restoring the site on which it is located from the use or sale of the product the lease. is also included in the cost of property, are probable and sufficient resources plant and equipment. are available in order to complete the development as intended. Goodwill Property, plant and equipment is carried Goodwill on acquisitions of associates at cost less accumulated depreciation Costs incurred on acquisition of is included in investments in associates and any impairment losses. intangible assets are capitalised and is tested for impairment as part of when cost can be measured reliably. the overall balance. Depreciation is provided on all property, Subsequent to initial recognition, all plant and equipment other than freehold intangible assets are measured at cost Goodwill is tested annually for land and work in progress, to write less accumulated amortisation and impairment and is carried at cost less down the cost, less residual value, by impairment losses. Intangible assets with accumulated impairment losses. For equal instalments over their useful lives an indefinite life are not amortised, while the purposes of impairment testing, (except for aircraft engines which are the depreciable amounts of intangible goodwill is allocated to each of the depreciated as noted below) as follows: assets with a finite useful life are Group’s cash-generating units expected amortised on the straight-line basis over to benefit from the synergies of the Average their expected useful lives. The following combination. Impairment losses on Item useful life amortisation rates are applicable: goodwill shall not be reversed in future periods. Gains and losses on the Leasehold land and The lesser of Item Useful life disposal of an entity include the carrying property 10 years or amount of related goodwill. life of lease Computer software 3 – 6 years Vehicles, computer 3 – 10 years Leasehold premium Period of the Impairment (excluding goodwill) equipment, furniture, lease At each reporting date, the Group fittings and equipment considers whether there is any Leases indication that assets may have Aircraft Leases of property, plant and equipment suffered an impairment loss. If any – Frames 20 – 30 years where the Group assumes substantially such indication exists, the recoverable – Engines Hours flown all the risks and rewards of ownership amount of the asset is estimated in are classified as finance leases. Finance order to determine the extent of the Each part of an item of property, plant leases are capitalised at the inception of impairment loss, if any. Where it is not and equipment with a cost that is the lease at the lower of the fair value of possible to estimate the recoverable

128 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

amount of an individual asset, the Group down or loss occurs. The amount of any Trade receivables estimates the recoverable amount of the reversal of any write-down of inventories, Trade receivables are measured at cash-generating unit to which the asset arising from an increase in net realisable initial recognition at fair value, and are belongs. value, is recognised as a reduction in subsequently measured at amortised the amount of inventories recognised cost using the effective interest rate The recoverable amount of an asset as an expense in the period in which the method. Appropriate allowances for or cash-generating unit is the higher reversal occurs. estimated irrecoverable amounts are of its fair value less costs to sell, or its recognised in profit or loss when there value in use. In assessing value in use, Financial instruments is objective evidence that the Group will report Sustainability the estimated future cash flows are not be able to collect all the amounts discounted to their present value using a The Group classifies its financial due according to the original terms of pre-tax discount rate that reflects current instruments, or their component parts, the receivables. market assessments of the time value of on initial recognition as a financial asset, a financial liability or an equity money and the risks specific to the asset Objective evidence includes observable instrument when the Group becomes for which the estimates of future cash data about the following loss events: flows have not been adjusted. party to the contractual provisions of the instrument. • Significant financial difficulty of the If the recoverable amount of an asset debtor; (or cash-generating unit) is estimated Financial assets • Breach of contract; to be less than its carrying amount, The Group classifies financial assets • Creditor granting concessions to the the carrying amount of the asset (or in the following categories: at fair debtor which it would not normally cash-generating unit) is reduced to its value through profit or loss, and loans consider, but for the debtor’s recoverable amount. An impairment and receivables. The classification financial difficulty; loss is recognised immediately in profit governance Corporate depends on the purpose for which the • It becomes probable that the debtor or loss. financial assets were acquired and the will enter bankruptcy or other Where an impairment loss subsequently nature and terms of the instrument financial reorganisation; reverses, the carrying amount of the itself. Management determines the • The disappearance of an active asset (or cash-generating unit) is classification of its financial assets at market for the debtor; and initial recognition. increased to the revised estimate of • An increase in delayed payments its recoverable amount, but so that Financial assets, other than investments from the debtor or an increase in the the increased carrying amount does in subsidiaries, are recognised on number of times the debtor exceeds not exceed the carrying amount that a trade-date basis and are initially its credit limit. would have been determined had no measured at fair value, including impairment loss been recognised for the The allowance recognised is measured transaction costs. asset (or cash-generating unit) in prior as the difference between the asset’s years. A reversal of an impairment loss is carrying amount and the present recognised immediately in profit or loss. Financial assets at fair value through value of estimated future cash flows Annual financial statements financial Annual profit or loss (held-for-trading) discounted at the effective interest rate Inventories A financial asset is classified under this computed at initial recognition. category if acquired principally for the Inventories are stated at the lower purpose of selling in the short term, In instances where there is clear and of cost and net realisable value. Cost or it is part of an identified portfolio of unassailable evidence that a trade is determined by using the weighted financial instruments that the Group receivable has been impaired and that average cost method, and comprises all manages together and has a recent there is no evidence to indicate that costs of purchase, costs of conversion actual pattern of short-term profit-taking. the trade receivable is recoverable and and other costs incurred in bringing the Derivatives are classified as held-for- all reasonable measures to recover the inventories to their present location trading unless they are designated as amount have been exhausted, the Group and condition. Provision is made for hedges. All items under this category would reduce the carrying amount of the obsolete and slow-moving inventory. Net are measured at fair value with changes impaired trade receivable directly against realisable value is the estimated selling recognised in profit or loss. the asset account or the provision for price in the ordinary course of business, impairment of trade receivables if one

less applicable variable selling expenses. information Shareholders’ Loans and other receivables had previously been raised. When inventories are sold, the Loans and receivables are non- Any increase or decrease in the provision carrying amount of those inventories is derivative financial assets with fixed for impairment of trade receivables recognised as an expense in the period in or determinable payments that are not or any reduction in trade receivables which the related revenue is recognised. quoted in an active market. The main directly against the asset account is The amount of any write-down of components of the Group’s loans and recorded in operating profit. Subsequent inventories to net realisable value and receivables comprise “loans to related recoveries of amounts previously written all losses of inventories are recognised parties”, “trade and other receivables” off are credited to operating expenditure as an expense in the period the write- and “cash and cash equivalents”. in profit or loss.

Wilderness Holdings Limited integrated annual report 2016 129 Summary of significant accounting policies continued for the year ended 29 February

2. Accounting policies Bank overdrafts and borrowings Where any Group company purchases continued Bank overdrafts and borrowings are the Company’s equity share capital (treasury shares), the consideration Financial instruments continued initially measured at fair value net of transaction costs incurred, and are paid, including any directly attributable Financial assets continued incremental costs (net of income taxes) subsequently measured at amortised is deducted from equity attributable to Cash and cash equivalents cost; any difference between the the Company’s equity holders until the Cash and cash equivalents comprise proceeds (net of transaction costs) shares are cancelled or reissued. Where cash on hand, demand deposits and the settlement or redemption of such shares are subsequently reissued, and other short-term highly liquid borrowings is recognised over the any consideration received, net of investments with original maturities term of the borrowings using the any directly attributable incremental of three months or less, and bank effective interest method. Finance transaction costs and the related overdrafts that are readily convertible to charges, including premiums payable income tax effects, is included in equity a known amount of cash and are subject on settlement or redemption, are attributable to the Company’s equity to an insignificant risk of changes in accounted for on an accrual basis and holders. value. These are initially recorded at fair are added to the carrying amount of value and subsequently measured at the instrument to the extent that they Income tax amortised cost. are not settled in the period in which they arise. The tax expense represents the sum Financial liabilities of the tax currently payable and deferred tax. The tax currently payable The Group classifies financial liabilities Borrowings are classified as current is based on taxable income for the in the following categories: at fair value liabilities unless the Group has an year. Taxable income differs from net through profit or loss, and amortised unconditional right to defer settlement income as reported in the statement cost. The classification depends on of the liability for at least 12 months of comprehensive income because it the purpose for which the financial after the reporting date. includes items of income or expense liabilities were acquired and the that are taxable or deductible in other nature and terms of the instrument Equity instruments periods and it further excludes items itself. Management determines the An equity instrument represents a that are never taxable or deductible. The classification of its financial liabilities contract that evidences a residual current income tax charge is calculated at initial recognition. interest in the net assets of an entity. on the basis of the tax laws enacted or Equity instruments issued by the substantively enacted at the reporting Financial liabilities are recognised on Company are recorded at the proceeds date in the countries where the Group’s a trade-date basis and are initially received, net of direct issue costs. subsidiaries and associates operate and measured at fair value, including generate taxable income. Management transaction costs. Interest periodically evaluates positions taken in tax returns with respect to situations Interest income is recognised on a time- Financial liabilities at fair value in which applicable tax regulation is proportion basis using the effective through profit or loss (held-for- subject to interpretation. It establishes interest method. When a receivable trading) provisions where appropriate on the is impaired, the carrying amount is A financial liability is classified under basis of amounts expected to be paid to reduced to its recoverable amount, this category if acquired principally for the tax authorities. being the estimated future cash flow the purpose of selling in the short term, discounted at the original effective or it is part of an identified portfolio of Current tax and deferred taxes are interest rate of the instrument, and financial instruments that the Group charged or credited directly to other continues unwinding the discount as manages together and has a recent comprehensive income if the tax relates interest income. Interest income on actual pattern of short-term profit- to items that are credited or charged, in impaired loans is recognised using the taking. Derivatives are classified as held- the same or a different period, to other for-trading unless they are designated original effective interest rate. comprehensive income. as hedges. All items under this category Deferred tax is accounted for using the are measured at fair value with changes Dividends liability method in respect of temporary recognised in profit or loss. Dividends are recognised when the differences which arise from differences right to receive payment is established. between the carrying amount of assets Financial liabilities at amortised cost and liabilities in the financial statements These are liabilities which are non- Stated capital and the corresponding tax basis used derivative financial liabilities with fixed Ordinary shares are classified as equity. in the computation of taxable income. or determinable payments. The main However, the deferred income tax is components of the Group’s financial Incremental costs directly attributable not accounted for if it arises from initial liabilities at amortised cost comprise to the issue of new shares or options recognition of an asset or liability in “bank overdrafts and borrowings” and are shown in equity as a deduction, net a transaction other than a business “trade and other payables”. of tax, from the proceeds. combination that at the time of the

130 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

transaction affects neither accounting where the Group’s obligation under the Common control accounting nor taxable profit or loss. Deferred schemes is equivalent to those arising in The Group applies merger accounting income tax is determined using tax rates a defined contribution retirement plan. for all its common control transactions (and laws) that have been enacted or which requires that the assets and substantially enacted by the reporting Share-based payments liabilities of the purchased business date and are expected to apply when The Group issues equity-settled share- be incorporated at the consolidated the related deferred income tax asset based payments to certain employees. book value (by the ultimate parent) is realised or the deferred income tax Equity-settled share-based payments and the difference between the liability is settled. In principle, deferred are measured at fair value at the grant purchase consideration and the book report Sustainability tax liabilities are recognised for all date. The fair value determined at the value of the assets and liabilities be taxable temporary differences and grant date of the equity-settled share- recorded in equity as a common control deferred tax assets are recognised to based payments is recognised over the reserve. The financial statements of the the extent that it is probable that taxable vesting period, based on the Group’s purchaser incorporate the combined income will be available against which estimate of shares that will eventually companies’ results and cash flows as if deductible temporary differences can vest, with a corresponding increase companies have always been combined, be utilised. in equity. At the end of each reporting including the re-presentation of the period, the Group revises its estimate comparative figures. Deferred income tax assets and of the number of equity instruments liabilities are offset when there is a expected to vest. The impact of the Standards, interpretations and legally enforceable right to offset current revision of the original estimates, if any, tax assets against current tax liabilities is recognised in profit or loss such that amendments to published standards and when the deferred income taxes the cumulative expense reflects the that are not yet effective assets and liabilities relate to income revised estimate, with a corresponding The following new standards, taxes levied by the same taxation adjustment to the equity-settled amendments and interpretations to governance Corporate authority on either the taxable entity or employee benefits reserve. existing standards have been published different taxable entities where there is and are applicable for future accounting an intention to settle the balances on a Borrowing costs periods but have not been adopted early net basis. by the Group (only changes applicable Borrowing costs directly attributable to the Group have been listed): The carrying value of deferred tax assets to the acquisition, construction or is reviewed at each reporting date and production of qualifying assets, which are assets that necessarily take a IAS 1 Presentation of Financial reduced to the extent that it is no longer substantial period of time to get ready Statements (effective for financial probable that sufficient taxable income for their intended use or sale, are periods commencing on or after will be available to allow all or part of added to the cost of these assets, 1 January 2016) the asset to be recovered. until such time as the construction This amendment is designed to Employee benefits or development of such assets is encourage entities to apply professional

substantially complete. judgement in determining what statements financial Annual Short-term employee benefits information to disclose in their The cost of short-term employee Investment income earned on the financial statements. For example, benefits (those payable within twelve temporary investment of specific the amendments make it clear that months after the service is rendered, borrowings pending their expenditure materiality applies to the whole of such as paid vacation leave and sick on qualifying assets is deducted financial statements and that the leave and bonuses) is recognised in the from the borrowing costs eligible for inclusion of immaterial information period in which the service is rendered. capitalisation. All other borrowing costs can inhibit the usefulness of financial are recognised in profit or loss in the disclosures. Furthermore, the The expected cost of profit-sharing period in which they are incurred. amendments clarify that the reporting and bonus payments is recognised entity should use its professional as an expense when there is a legal Provisions judgement in determining where and or constructive obligation to make A provision is recognised when there in what order information is presented such payments as a result of past is a legal or constructive obligation as in the financial disclosures. The performance.

a result of a past event for which it is amendments do not have an effective information Shareholders’ probable that an outflow of economic date, however the Group has for this Defined contribution plans benefits will be required to settle the financial period already considered Payments to defined contribution obligation and the amounts have been these changes and has made some retirement benefit plans are charged as reliably estimated. Provisions are improvements in the manner in which an expense as they fall due. continually re-assessed and are based it prepares its financial statements. It is on historical experience and other expected however, that all changes will Payments made to industry- or state- factors such as reasonable expectations emerge slowly over time as practice and managed retirement schemes are dealt of future events. Provisions are not experience become clearer. with as defined contribution plans recognised for future operating losses.

Wilderness Holdings Limited integrated annual report 2016 131 Summary of significant accounting policies continued for the year ended 29 February

2. Accounting policies when accounting for investment IFRS 7 Financial Instruments: continued entities. The amendments also provide Disclosures (effective for financial relief in particular circumstances, periods commencing on or after Standards, interpretations and which will reduce the costs of 1 January 2016) amendments to published standards applying the standards. The Group The amendment to IFRS 7 clarifies the that are not yet effective continued is still determining the impact of applicability of previous amendments the amendment on the financial IAS 7 Statement of Cash Flows to IFRS 7 issued in December 2011 with statements. (effective for financial periods regard to offsetting financial assets commencing on or after and financial liabilities in relation 1 January 2017) IAS 34 Interim Financial to the interim financial statements Reporting (effective for financial prepared under IAS 34. The Group The amendment to IAS 7 requires periods commencing on or after is still determining the impact of the entities to disclose information about 1 January 2016) amendment on the financial statements. changes to their financial liabilities. The Group is still determining the impact The amendment to IAS 34 introduces IFRS 9 Financial Instruments of the amendment on the financial clarification of the meaning of (effective for financial periods statements. disclosure of information “elsewhere in the interim financial report”. The commencing on or after 1 January 2018) IAS 16 Property, Plant and Group is still determining the impact of the amendment on the financial This standard will replace IAS 39 Equipment (effective for financial statements. Financial Instruments: Recognition periods commencing on or after and Measurement. The Group is 1 January 2016) IAS 38 Intangible Assets (effective still determining the impact of the The amendments to IAS 16 and IAS 38 for financial periods commencing on amendment on the financial statements. clarify the basis for the calculation of or after 1 January 2016) depreciation and amortisation, as being IFRS 10 Consolidated Financial the expected pattern of consumption The amendments to IAS 16 and Statements (effective for financial of the future economic benefits of IAS 38 clarify the basis for the periods commencing on or after an asset, as well as establishing the calculation of depreciation and 1 January 2016) principle for the basis of depreciation amortisation, as being the expected and amortisation as being the expected pattern of consumption of the future The amendment to IFRS 10 introduces pattern of consumption of the future economic benefits of an asset, as clarifications to the requirements when economic benefits of an asset. They well as establishing the principle accounting for loss of control of a also clarify that revenue is generally for the basis of depreciation and subsidiary. The Group is still determining presumed to be an inappropriate basis amortisation as being the expected the impact of the amendment on the for measuring the consumption of pattern of consumption of the future financial statements. economic benefits in such assets with economic benefits of an asset. They some exceptional circumstances. The also clarify that revenue is generally IFRS 16 Leases (effective for Group is still determining the impact presumed to be an inappropriate basis financial periods commencing on or of the amendments on the financial for measuring the consumption of after 1 January 2019) economic benefits in such assets with statements. The new standard replaces existing some exceptional circumstances. The leasing guidance and interpretations, Group is still determining the impact IAS 27 Separate Financial and introduces a single lessee Statements (effective for financial of the amendments on the financial accounting model which requires a periods commencing on or after statements. lessee to recognise assets and liabilities for all leases with a term of more than 1 January 2016) IFRS 5 Non-current Assets Held 12 months, unless the underlying The amendment to IAS 27 allows For Sale and Discontinued asset is of low value. A lessee is entities to use the equity method to Operations (effective for financial required to recognise a right-of-use account for investments in subsidiaries, periods commencing on or after asset representing its right to use the joint ventures and associates in their 1 January 2016) separate financial statements. The Group underlying leased asset and a lease The amendment to IFRS 5 clarifies that is still determining the impact of the liability representing its obligation a change in the manner of disposal of amendment on the financial statements. to make lease payments. A lessee a non-current asset or disposal group measures right-of-use assets similarly held for sale is considered to be a to other non-financial assets and lease IAS 28 Investments in Associates continuation of the original plan of liabilities similarly to other financial and Joint Ventures (effective for disposal and accordingly, the date of liabilities. In addition, the standard financial periods commencing on or classification as held for sale does not expands the disclosure requirements for after 1 January 2016) change. The Group is still determining lessees. The Group is still determining The amendment to IAS 28 introduces the impact of the amendment on the the impact of the amendment on the clarifications to the requirements financial statements. financial statements.

132 Wilderness Holdings Limited integrated annual report 2016 Notes to the consolidated annual financial statements Wilderness About for the year ended 29 February

3. Revenue

2016 2015 P’000 P’000

3.1 Revenues by type of service Travel experience 836 060 840 265

Service fees 70 761 77 200 report Sustainability Other 28 266 27 121 935 087 944 586 3.2 Revenue by geographical region Botswana 468 735 459 437 Kenya 163 (192) Namibia 162 017 171 287 South Africa 679 961 683 987 Zambezi 150 071 146 621 Intergroup (525 860) (516 554) Group 935 087 944 586 Corporate governance Corporate 3.3 Revenue by source market (%) Africa and the Middle East 33 24 Americas 43 50 Australasia 2 3 Europe and Asia 22 23 100 100

4. Operating profit

2016 2015 P’000 P’000 Annual financial statements financial Annual

Operating profit is arrived at after taking into account the following items: Depreciation 61 472 52 429 Amortisation of intangible assets 3 264 3 467 Total depreciation and amortisation 64 736 55 896

Net impairment (reversal)/loss on property, plant and equipment (911) 9 523 Impairment loss on financial instruments 115 152 Impairment loss on intangibles – 500 Total impairment (reversal)/loss (796) 10 175 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 133 Notes to the consolidated annual financial statements continued for the year ended 29 February

4. Operating profitcontinued

2016 2015 P’000 P’000

Foreign exchange gains Realised 3 504 4 533 Unrealised 22 737 3 570 Net foreign exchange gains 26 241 8 103

Auditors' remuneration Current year fee 4 145 4 047 Prior year over provision 97 (127) Other services and expenses 941 434 5 183 4 354

Operating lease rentals Premises 31 197 28 634 Office and plant equipment 3 101 2 626 Aircraft and vehicles 12 188 7 636 46 486 38 896

Resource royalty 13 116 12 720

Net (profit)/loss on disposal of property, plant and equipment (11) 187 Net profit on disposal of subsidiaries – 1 057 Net loss on disposal of associates – (4 998) (11) (3 754)

Staff costs 307 191 309 952

Number of employees 2 208 2 156

Directors’ emoluments Executive directors 12 583 9 044 Short-term employee benefits 9 019 8 167 Post-employment benefits 454 343 Share-based payments 3 110 534 Non-executive directors’ fees 580 580 13 163 9 624 Share-based payments expense 7 616 8 313

134 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

5. Financing costs

2016 2015 P’000 P’000

Interest paid Finance leases and loans 2 897 3 918 Bank overdraft and trade finance 2 851 3 190 Sustainability report Sustainability 5 748 7 108

6. Taxation

2016 2015 P’000 P’000

6.1 Taxation charge Current taxation Company taxation 38 911 29 429 (Over)/under provision prior year (1 263) 132 37 648 29 561 Corporate governance Corporate Deferred taxation – current year (note 12) 3 296 2 327 – prior year (note 12) (104) – – change in tax rate 70 (91) 40 910 31 797 Withholding tax 5 331 666 Total taxation charge 46 241 32 463

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 (0.9) (1.6)

Effect of expenses that are not deductible in determining taxable profit 7.3 8.2 statements financial Annual Adjustments recognised in the current year in relation to current tax of prior year (1.0) 0.1 Effect of different tax rates of subsidiaries in other jurisdictions 3.8 1.9 Effect of unused tax losses and tax offsets not recognised as deferred tax assets 4.6 2.3 Effect of utilisation of tax losses not previously recognised (1.4) (2.7) Prior year deferred tax adjustments (0.1) (0.1) Share of results of associates (0.3) (0.8) Withholding tax 4.4 0.6 Effective taxation rate 38.4 29.9

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 165 121 167 776 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 135 Notes to the consolidated annual financial statements continued for the year ended 29 February

7. Headline profit and earnings per share Reconciliation between profit attributable to owners of the Company and headline earnings:

Gross Net P’000 P’000

2016 Profit attributable to owners of the Company 76 525 Headline earnings adjustments: IAS 16 – Gains and compensation on disposal and impairment of property, plant and equipment (6 321) (4 587) IAS 36 – Impairment of assets (911) 7 Headline profit 71 945

2015 Profit attributable to owners of the Company 72 611 Headline earnings adjustments: IAS 16 – Gains and compensation on disposal and impairment of property, plant and equipment (10 834) (8 000) IAS 27 – Gains on disposal of subsidiaries (1 057) (1 057) IAS 28 and 31 – Profit on disposal of associates 4 998 3 459 IAS 36 – Impairment of assets 9 523 7 875 IAS 38 – Impairment of intangible assets 500 361 Headline profit 75 249

2016 2015

Reconciliation of diluted shares Number of shares in issue At end of year 231 882 451 231 882 451 Weighted average number of shares Shares for earnings per share 231 882 451 231 588 301 Add dilutive shares Staff share scheme 10 312 906 6 123 903 Diluted weighted average 242 195 357 237 712 204

Earnings per share (thebe) – Basic 33.00 31.35 – Diluted 31.60 30.55 – Headline 31.03 32.49 – Diluted headline 29.71 31.66

136 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

8. Property, plant and equipment

2016 2015

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 Sustainability report Sustainability equipment 259 350 139 605 119 745 253 158 142 141 111 017 Aircraft 204 062 41 448 162 614 169 062 36 017 133 045 Leasehold land and property 348 793 164 104 184 689 312 887 153 999 158 888 Work in progress 16 640 – 16 640 21 684 – 21 684 828 845 345 157 483 688 756 791 332 157 424 634

Included in property, plant and equipment are assets held under finance lease agreements with a book value of P93 million (2015: P82 million) which are encumbered as security for liabilities under finance lease agreements as stated in note 16.

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, Corporate governance Corporate 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 – 2016 Net book value at beginning of year 111 017 133 045 158 888 21 684 424 634 Additions 23 953 45 111 14 325 54 949 138 338 Transfers/reclassification 20 072 169 39 255 (59 496) – Translation differences (3 749) (3 715) (7 947) (497) (15 908) Disposals (1 935) (688) (192) – (2 815) Annual financial statements financial Annual Depreciation (29 321) (9 102) (23 049) – (61 472) (Impairment)/reversal of impairment (292) (2 206) 3 409 – 911 Net book value at end of year 119 745 162 614 184 689 16 640 483 688 Movement of property, plant and equipment – 2015 Net book value at beginning of 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 Shareholders’ information Shareholders’ 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 year 111 017 133 045 158 888 21 684 424 634

Wilderness Holdings Limited integrated annual report 2016 137 Notes to the consolidated annual financial statements continued for the year ended 29 February

9. Goodwill

2016 2015 P’000 P’000

At carrying value At beginning of year 34 664 32 696 Arising on acquisition of subsidiaries – 3 831 Disposal of subsidiaries – (1 600) Exchange differences (1 763) (263) Per cash-generating unit: 32 901 34 664 African Experience Limited 935 2 512 Baobab Safari Lodges (Proprietary) Limited 3 831 3 831 Great Explorations (Proprietary) Limited 10 152 10 152 Linyanti Investments (Proprietary) Limited 10 189 10 189 Micheletti Bates Safaris (Proprietary) Limited 1 077 1 077 The Namib Lodge Company (Proprietary) Limited 56 68 Northern Air Maintenance (Proprietary) Limited 731 731 Santawani Partnership (Proprietary) Limited 3 703 3 703 Wilderness Air Botswana (Proprietary) Limited 1 356 1 356 Wilderness Touring Cape Proprietary Limited 871 1 045

An annual impairment test is performed to assess whether goodwill has been impaired. Goodwill has been allocated for impairment testing purposes to individual cash-generating units (CGUs).

The recoverable amount of every CGU has been determined based on a value in use calculation. That calculation uses cash flow projections based on financial budgets approved by management covering a five-year period and a discount rate of between 12% and 18% (2015: 7.41% and 18%) that reflects the specific results to the relevant CGU. The discount rates vary dependent upon the location of the CGU, the risks associated with the cashflows and the currency in which the cashflows are generated. Cashflows beyond that five-year period have been extrapolated using between 0% and 2% growth rate. This growth rate does not exceed the long-term average growth rate for the market in which they operate. Management believes that any reasonable possible change in the key assumptions on which the individual CGU’s units’ recoverable amount is based would not cause their carrying amounts to exceed the recoverable amount.

10. Intangible assets

2016 2015 P’000 P’000

Intangibles at cost 23 699 25 744 Accumulated amortisation (12 956) (11 061) Net book value 10 743 14 683

At beginning of year 14 683 17 913 Additions 431 585 Impairment – (500) Amortisation (3 264) (3 467) Exchange differences (1 107) 152 Balance at end of year 10 743 14 683

138 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

11. Investment in associates Proportion of ownership interest 29 February 28 February 2016 2015 2016 2015 Name of associate % % P’000 P’000

Cost of investment in associate report Sustainability French Mauve Properties (Proprietary) Limited* – 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 6 225 Less: Impairment (708) (708) Attributable share of post-acquisition profits 4 583 4 081 At beginning of year 4 081 5 484 Share of current year earnings 1 502 4 191 Reserves realised on disposal of associates – (4 929) Corporate governance Corporate Dividends received (1 000) (665)

Total investment in associates 10 100 9 598

Summary of the financial information of Ngamiland Adventure Safaris (Proprietary) Limited, not adjusted for the percentage interest held by the Group: Current assets 30 824 31 364 Current liabilities 10 758 17 115 Non-current assets 53 331 45 991 Non-current liabilities 26 727 21 076 Revenue 55 437 58 036 Profit after tax 7 509 11 078 Annual financial statements financial Annual Share of earnings of equity-accounted investments, net of tax 1 502 2 215

* 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. *** In the process of being liquidated.

The directors consider the carrying value of the Group’s interest in the associate to approximate fair value. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 139 Notes to the consolidated annual financial statements continued for the year ended 29 February

12. Deferred tax assets/(liabilities)

2016 2015 P’000 P’000

Balance at beginning of year (6 874) (5 439) Subsidiaries acquired – 444 Translation differences (1 334) 357 Amount recorded in the statement of comprehensive income (note 6) (3 262) (2 236) Balance at end of year (11 470) (6 874)

Deferred tax assets 17 518 21 935 Deferred tax liabilities (28 988) (28 809) (11 470) (6 874)

Timing differences comprise: Estimated tax losses 19 677 22 012 Capital allowances (46 646) (46 030) Provisions 2 781 6 158 Income received in advance 9 017 7 548 Other temporary differences 3 701 3 438 (11 470) (6 874)

Unrecognised deferred tax assets – at gross value Deferred tax assets have not been recognised in respect of the following items: Deductible temporary differences 1 279 1 819 Tax losses 101 771 125 700 103 050 127 519

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

140 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

12. Deferred tax assets/(liabilities) continued The expiration of tax losses is as follows:

Expiration P’000 date

2016 Year originated Sustainability report Sustainability 2012 7 587 2017 2013 31 112 2018 2014 3 889 2019 2015 1 036 2019 2015 4 849 2020 2016 1 419 2020 2016 13 251 2021 2016 7 563 2022 70 706

2015 Year originated governance Corporate 2011 15 500 2016 2012 10 047 2017 2013 31 164 2018 2014 4 578 2019 2014 3 925 2020 2015 986 2019 2015 4 609 2020 2015 1 135 2021 71 944 Annual financial statements financial Annual Deferred tax assets have been recognised to the extent that it is probable that taxable income will be available against which the deductible temporary differences, unused tax losses and credits can be utilised.

To the extent that the Group recognises deferred tax assets relating to tax losses these are recognised only where management is satisfied, based on its current projections, that taxable profits will be realised in the foreseeable future to utilise the estimated tax losses.

13. Inventories

2016 2015 P’000 P’000

Goods for resale 13 244 11 680

Consumables 9 321 9 440 information Shareholders’ Fuel 1 877 2 360 24 442 23 480

Wilderness Holdings Limited integrated annual report 2016 141 Notes to the consolidated annual financial statements continued for the year ended 29 February

14. Trade receivables

2016 2015 P’000 P’000

Trade receivables – related parties (note 23) 2 514 1 627 – third parties 19 079 19 628 21 593 21 255

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

2016 1 month past due 494 762 3 138 4 394 2 months past due 24 320 779 1 123 3 months past due 257 180 256 693 4 months and greater past due 1 287 (123) 1 543 2 707 2 062 1 139 5 716 8 917

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

The Group does not hold any collateral as security. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable above. The carrying value of trade receivables approximates fair value.

142 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

15. Stated capital

2016 2015 P’000 P’000

Issued share capital 156 086 156 086

Number of shares in issue (thousands) 231 882 231 882 Sustainability report Sustainability 16. Long-term liabilities

2016 2015 P’000 P’000

Unsecured and interest bearing 6 529 6 347 Loans from related parties (note 16.1) 2 711 2 343 Settlement liability (note 16.2) 3 818 4 004 Unsecured and interest free 12 486 11 505 Loans from related parties (note 16.3) 1 693 2 149 Operating lease liability 10 718 9 209 Deferred income 75 147 Corporate governance Corporate Secured and interest bearing (note 16.4) 56 524 70 138 75 539 87 990 Less: Current portion included in accounts payable (note 17) (32 116) (27 423) 43 423 60 567

Due within two years 6 918 43 042 Due within three years 6 176 2 326 Due within four years 5 453 1 644 Due within five years 4 814 737 Due after five years 20 062 12 818 43 423 60 567 Annual financial statements financial Annual Finance leases Minimum Lease payments 7 261 8 332 Less: Future finance charges (999) (1 242) 6 262 7 090

16.1 US Dollar denominated owing to a minority shareholder of a subsidiary, bears interest at 3% per annum and has no fixed terms of repayment.

16.2 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.

16.3 South African Rand denominated loans owing to minority shareholders of a subsidiary, interest free and not repayable in the next 12 months. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 143 Notes to the consolidated annual financial statements continued for the year ended 29 February

16. Long-term liabilities continued

2016 2015 Nominal Carrying Carrying interest rate Year of amount amount Currency % maturity P’000 P’000

16.4 Institution Industrial Development Corporation 6-month of SA Limited (IDC) US Dollar USD Libor + 2 2017 21 798 60 945 3-month Barclays Bank of Botswana Limited US Dollar USD Libor + 2 2022 27 879 – ZAR – JIBAR Development Bank of SA Limited (DBSA) SA Rand + 2.4 2016 585 2 103 Nedbank Limited NAD 9.50 2020 6 262 7 090 56 524 70 138

The loans are secured as follows:

IDC The loan has been guaranteed by Wilderness Air Botswana (Proprietary) Limited, Okavango Wilderness Safaris (Proprietary) Limited, Wilderness Tours Limited and Wilderness Safaris Limited. The Botswana guarantors entered into a deed of hypothecation/mortgage over unencumbered moveable and immovable assets and each guarantor pledged its shares and cession of loan accounts in each of their subsidiaries, where applicable.

Nedbank Limited The loan is secured by property, plant and equipment included in note 8.

17. Trade and other payables

2016 2015 P’000 P’000

Financial liabilities 77 022 82 323 Trade payables – third parties 30 438 40 775 – related parties (note 23) 1 791 1 526 Royalties payable 12 677 12 599 Current portion of long-term liabilities (note 16) 32 116 27 423 Non-financial liabilities 265 967 250 179 Accrued expenses and other payables 179 240 173 945 Amounts received in advance – Relating to services to be rendered within 12 months 79 855 76 234 Rehabilitation provision 6 872 –

342 989 332 502

The carrying value of financial liabilities approximates their fair value. Trade and other payables are generally settled in the normal course of operations and, unless specified, the amounts shown will be settled within the next 12 months.

144 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

18. Bank overdrafts

2016 2015 P’000 P’000

Stanbic Bank of Botswana Limited (note 18.1) 47 166 49 274 Other – 9 47 166 49 283 Sustainability report Sustainability

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 A2-AIV, A2-ANT, A2-OWL and A2-CUB.

18.1 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) governance Corporate 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.

19. Capital commitments

2016 2015 P’000 P’000

Authorised by directors and contracted for 1 783 33 121 Authorised by directors but not yet contracted for 211 534 121 884 statements financial Annual Total capital commitments 213 317 155 005

This expenditure will be incurred in the ensuing year and will be financed from existing cash resources and new borrowing facilities. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 145 Notes to the consolidated annual financial statements continued for the year ended 29 February

20. Operating lease commitments

2016 2015 P’000 P’000

Operating leases relate mainly to concession leases with average remaining lease terms of nine years. Due within one year: Property 21 369 23 618 Total operating lease commitments due within one year 21 369 23 618 Due between two and five years: Property 59 280 59 342 Total operating lease commitments due between two and five years 59 280 59 342 Due after five years: Property 89 743 92 420 Total operating lease commitments due after five years 89 743 92 420 Total non-cancellable operating lease commitments 170 392 175 380

21. Commitments, contingent liabilities, guarantees and litigation The Group has certain contingent liabilities resulting from litigation and claims, generally involving commercial and employment matters, which are incidental to the ordinary conduct of its business. Management believes, after taking legal advice where appropriate on the probable outcome of these contingencies, that none of these contingencies will materially affect the financial position or the results of operations of the Group. Sureties and guarantees provided are those noted in note 16 and note 18. Limited letters of comfort and support have been issued to the following entities within the Group: Damaraland Camp (Proprietary) Limited Goodison Two Hundred Fifteen Limited Hana-Ven (Proprietary) Limited Palmwag Lodge (Proprietary) Limited Rocktail Bay Lodge Proprietary Limited Safari Adventure (Proprietary) Limited Santawani Partnership (Proprietary) Limited Wilderness Air Namibia (Proprietary) Limited Wilderness Air Zambia Limited Wilderness Manzengwena Camp Proprietary Limited Wilderness Safari and Adventure Company Proprietary Limited Wilderness Safaris Camps of South Africa Proprietary Limited Wilderness Tours Limited (Zambia) and its subsidiaries

Namibia Cession of book debts N$15.4 million out and out cession of loan funds by Wilderness Safaris Investment and Finance Proprietary Limited. Unlimited suretyship signed by Kulala (Proprietary) Limited supported by N$5 million first and second continuing covering mortgage bonds over farm Eensaam No 157, Maltahohe district in respect of Kulala (Proprietary) Limited. N$5.7 million limited suretyship provided by Wilderness Safaris Investment and Finance Proprietary Limited. N$1.5 million limited suretyship provided by Namib Travel Shop (Proprietary) Limited. Unlimited suretyship provided by Taimibia (Proprietary) Limited supported by N$3 million first and second continuing mortgage bond over farm Witwater No 139. N$3 million third general notarial bond over moveables in the name of The Namib Lodge Company (Proprietary) Limited.

146 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

21. 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 third parties amounting to P1.8 million (2015: P2.2 million).

22. Financial risk management report Sustainability 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 cooperation 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. Corporate governance Corporate 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 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. Annual financial statements financial Annual 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. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 147 Notes to the consolidated annual financial statements continued for the year ended 29 February

22. Financial risk management continued 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 29 February 2016 (2015: 5%). The sensitivity analysis is based on the Group’s foreign currency financial instruments held at each balance sheet date.

If the US Dollar strengthened by 5% (2015: 5%), then this would have the following impact:

2016 2015 P’000 P’000 Gain/(loss) Gain/(loss)

Net effect on after tax profits 5 206 5 516 Equity (561) (476)

An equal and opposite impact would occur in a 5% weakening of the US Dollar.

Forward foreign exchange contracts At the reporting date, there were no foreign exchange contracts in use, in the prior year the fair value of the Group’s foreign exchange contracts was estimated to be a liability of P0.11 million. These amounts are based on market values of equivalent instruments at the reporting date.

The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit’s functional currency. Approximately 70% of the Company’s sales are denominated in currencies other than the functional currency of the operating unit making the sale.

Cash flow and fair value interest rate risk The Group’s income and operating cash flows are substantially independent of changes in market interest rates.

The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.

Fluctuations in interest rate impact on the value of short-term cash investment and financing activities, giving rise to interest rate risk. The cash is managed to ensure surplus funds are invested in a manner to achieve maximum returns while minimising risks. A 0.5% variation in interest rates on net interest bearing borrowings would have resulted in an increase in finance costs of P0.3 million (2015: P0.4 million).

148 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

22. 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 report Sustainability 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 29 February 2016, the Group’s liabilities have contractual maturities which are summarised in notes 18, 20 and 23.

Long-term borrowings are due as follows:

2016 2015 P’000 P’000 Corporate governance Corporate 1 – 2 years 6 918 43 042 3 – 5 years 16 443 4 707 After 5 years 20 062 12 818 Total 43 423 60 567

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. statements financial Annual (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. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 149 Notes to the consolidated annual financial statements continued for the year ended 29 February

22. Financial risk management continued Liquidity risk analysis continued

2016 2015 P’000 P’000

Financial assets Trade receivables 21 593 21 255 Included in other receivables 23 540 24 553 Cash and cash equivalents 249 131 283 200 294 264 329 008

Financial liabilities Included in borrowings 64 821 78 781 Trade and other payables (excluding current portion of long-term liabilities) 44 906 54 900 Bank overdraft 47 166 49 283 156 893 182 964

The carrying value of the financial assets approximates their fair value.

Capital management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Group’s objective is to maintain a distribution cover of approximately two to three times profit after tax for the foreseeable future. The Group’s policy remains unchanged from the prior year.

The Group is not subject to any externally imposed capital requirements.

The capital structure consists of debt, which includes the borrowings disclosed in note 18, cash and cash equivalents and equity attributable to equity holders of the parent, comprising share capital, reserves and retained earnings as disclosed in the statement of changes in equity. Management continually monitors the level of debt and equity and considers the entity to be adequately funded. As part of this review, management considers the cost of capital and the risks associated with each class of capital. The Group has set a target gearing ratio of 30% – 35% as the proportion of net debt to equity. The gearing ratio at the end of the financial year was below the target range as the net cash balance excluding income received in advance is in excess of the debt. However, with the execution of the expansion plans after the end of the reporting period that are to be largely financed by debt the gearing ratio is expected to fall within the target range.

150 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

23. 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 29 February 2016, the intergroup sales of goods and provision of services amounted to P739 million (2015: P728 million).

2016 2015 P’000 P’000

Included in sales: report Sustainability Associates 1 178 3 071 Other 15 850 16 929 Key management personnel 158 167 17 186 20 167

Included in cost of sales and other expenses: Associates 50 398 66 964 Other 14 789 20 125 Key management personnel 113 99 65 300 87 188

Management fees

Key management personnel 1 096 1 200 governance Corporate 1 096 1 200

Included in trade receivables: Associates 104 386 Other 2 365 1 223 Key management personnel 45 18 2 514 1 627

Included in trade payables: Associates 1 736 1 009 Other 48 225 Key management personnel 7 292 Annual financial statements financial Annual 1 791 1 526

Included in other receivables: Associates – 9 Other 2 032 1 952 2 032 1 961

Included in other payables: Other 20 2 878 20 2 878

Remuneration to key management personnel is reflected in note 4. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 151 Notes to the consolidated annual financial statements continued for the year ended 29 February

24. Share-based payments The awards and allocations of shares and share appreciation rights are granted to executives and key staff members. In keeping with good corporate governance principles the incentives depend upon continued employment within the Group and the achievement of specified performance conditions. These long-term performance conditions align the interests of shareholders with those of key employees of the Group thereby increasing shareholder value on a sustainable basis.

The incentives are accounted for as equity-settled share-based payments in terms of IFRS 2. In terms of the equity-settled incentives the following general rules are observed with respect to the shares required to settle the Group’s obligations in terms of the scheme. The Company shall: • At all times reserve and keep available, free from pre-emptive rights, out of its authorised but unissued share capital, such number of shares as may be required to enable the Company to fulfil its obligations to settle shares to participants; • Ensure that shares may only be issued or purchased for purposes of the plan once a participant (or group of participants) to whom they will be awarded or allocated has been formally identified; • Ensure that shares held for purposes of the plan will not have their votes at general/annual general meetings taken into account for the purposes of resolutions proposed in terms of the BSE Listings Requirements; • The aggregate number of shares which may be acquired by all participants during the term of the plan, shall not exceed 16 170 000 (sixteen million one hundred and seventy thousand) shares, being 7% of the issued share capital of the Company, and any increases in these amounts will require approval of shareholders at a general meeting; and • The aggregate number of shares which may be acquired by any one participant during the duration of the plan, shall not exceed 1 155 000 (one million one hundred and fifty-five thousand) shares, being 0.5% of the issued share capital of the Company, and any increases in these amounts will require approval of shareholders at a general meeting.

Eligible employees under the incentive plans exclude non-executive directors but include all other persons associated with the Company at the sole discretion of the directors.

Performance Share Plan This is an equity-settled incentive in terms of which eligible employees to whom awards have been made would become entitled, upon vesting, to shares in the Company. The plan is subjected to certain performance conditions, which are based primarily on sustainable earnings performance; outperformance against the targets will result in a geared vesting of awards, whilst underperformance will result in the awards lapsing.

The directors at their sole discretion may from time to time alter the performance conditions as circumstances necessitate.

The performance shares allocated in terms of this plan shall vest three years from the date of grant. There is no consideration payable for an award.

2016 2015

Summary of Plan activities for the period (number of shares) Performance share awards allocated to eligible employees in prior periods 4 203 801 5 773 977 – Awards exercised during the year – (1 150 002) – Allotted during the year 3 840 364 – – Forfeiture of allocations previously made (363 434) (420 174) Performance share awards allocated to eligible employees at period end 7 680 731 4 203 801

No awards were made in the current year (2015: Nil).

The allotment for the year is based on management’s assessment that the Group will achieve the performance conditions as determined by the Board.

152 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

24. 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 report Sustainability 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.

No allocations were made in the current year (2015: Nil).

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.

2016 2015 Corporate governance Corporate Summary of Plan activities for the period (number of shares) Share appreciation rights allocated to eligible employees in prior periods 8 841 267 9 910 860 – Forfeiture of allocations previously made (1 263 864) (1 069 593) Share appreciation rights allocated to eligible employees at period end 7 577 403 8 841 267

The fair value of the share appreciation rights was determined using the same methodology and assumptions as the Performance Share Plan.

2016 2015

Share-based payment expense recognised in profit or loss for the period (P’000) Staff costs 7 616 8 313 Annual financial statements financial Annual Tax effect (2 037) (1 909) 5 579 6 404

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 1 150 002

Share-based payment expense recognised in profit or loss for the period (P’000) 5 579 6 404

Accumulated amount recognised as a share-based payment reserve in equity at the end of the period (P’000) 23 051 15 435 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 153 Notes to the consolidated annual financial statements continued for the year ended 29 February

25. Segmental report A reportable segment is a segment that is used by the Group Executive Committee (chief operating decision-maker) to make key operating decisions, allocate resources and assess performance.

The reportable segments are geographically differentiated regions and grouped by their relative size.

Segmental revenue is reflected under Revenue in note 3.

Operating results are reported and reviewed regularly by the Group Executive Committee and include items directly attributable to a segment as well as those that can be attributed on a reasonable basis, whether from external transactions or from transactions with other Group segments.

Unallocated items mainly comprise corporate or centralised treasury function expenses which do not directly relate to the operating activities of the segments or which cannot be re-allocated on a reasonable basis.

Segment assets and liabilities comprise those operating assets and liabilities that are directly attributable to the segment or can be allocated to the segment on a reasonable basis.

Segment profit or loss is measured as operating performance directly attributable to the segment and is defined as EBITDA before other gains and losses and foreign exchange gains or losses.

2016 2015 P’000 P’000

Segmental profit Botswana 123 736 111 076 Kenya (1 233) (972) Namibia 17 787 17 853 South Africa 32 067 29 843 Zambezi 342 8 746 Intergroup (4) (4)

Group 172 695 166 542

Depreciation and amortisation (64 736) (55 896) Botswana (31 951) (28 790) Kenya (23) (9) Namibia (10 826) (9 787) South Africa (7 112) (6 650) Zambezi (14 824) (10 660)

Transactions unallocated to a segment Other gains and losses 374 7 056 Foreign exchange gains 26 241 8 103 Impairment reversals/(losses) 796 (10 175) Interest paid (5 748) (7 108) Interest received 1 460 2 501 Unrealised forex loss – loans (12 215) (6 519) Associate earnings 1 502 4 191 Profit before taxation 120 369 108 695 Taxation (46 241) (32 463) Profit after tax 74 128 76 232

154 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

25. Segmental report continued

2016 2015 P’000 P’000

Capital expenditure Botswana 82 636 52 103 Namibia 10 021 18 160 Sustainability report Sustainability Rwanda 5 881 – South Africa 12 476 3 995 Zambezi 27 755 24 925 Group 138 769 99 183

Segmental assets Botswana 516 032 442 368 Kenya 2 465 1 040 Namibia 133 357 149 230 South Africa 208 278 252 212 Rwanda 6 619 – Corporate governance Corporate Zambezi 111 601 108 564 Central financing activities and eliminations (44 781) (36 993) Group 933 571 916 421

Segmental liabilities Botswana 219 913 228 957 Kenya 2 366 990 Namibia 29 391 38 214 Rwanda 13 – South Africa 244 700 230 372 Zambezi 37 320 35 516 Annual financial statements financial Annual Central financing activities and eliminations (69 660) (61 659) Group 464 043 472 390

No single customer contributes 10% or more to revenue in the current year or prior year. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 155 Notes to the consolidated annual financial statements continued for the year ended 29 February

26. Cash generated from operations

2016 2015 P’000 P’000

Profit before taxation 120 369 108 695 Adjustments for: Unrealised foreign exchange gains (22 737) (3 570) Share of equity-accounted investment earnings (1 502) (4 191) Depreciation and amortisation 64 736 55 896 Impairment loss (796) 10 175 Profit on disposal of property, plant and equipment (11) (187) Loss/(profit) on disposal of associate – 4 998 Interest received (1 460) (2 501) Financing costs 5 748 7 108 Profit on disposal of subsidiaries – (1 057) Unrealised foreign exchange losses on loans 12 215 6 519 Share-based payment expense 7 616 8 313 Operating profit before working capital changes 184 178 190 198 Working capital changes: Increase in inventories (962) (3 557) Decrease/(Increase) in accounts receivable 4 433 (20 090) Decrease in accounts payable (3 226) (9 461) 184 423 157 090

27. Taxation paid

2016 2015 P’000 P’000

Net amounts receivable at beginning of year 4 926 12 844 Acquisition of subsidiary – (20) Disposal of subsidiary – (20) Amounts charged to profit or loss excluding deferred tax (42 979) (30 227) Other movements and translation differences 988 665 Net amount receivable at end of year (8 048) (4 926) (45 113) (21 684)

156 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

28. 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.

2016 2015 P’000 P’000

The fair value of assets acquired and the liabilities assumed on the acquisition of the report Sustainability 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 Corporate governance Corporate 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 Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 157 Notes to the consolidated annual financial statements continued for the year ended 29 February

29. Disposal of subsidiary companies Namibia Tracks and Trails (Proprietary) Limited and Kasane Fish Farms (Proprietary) Limited were disposed during the prior financial year.

2016 2015 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

30. Additions to property, plant and equipment

2016 2015 P’000 P’000

Maintenance of operations: Vehicles, furniture, fittings and equipment 22 232 2 636 Aircraft 20 845 7 871 Leasehold land and property 4 874 792 Work in progress – 25 520 Expansion of operations: Vehicles, furniture, fittings and equipment 1 721 28 934 Aircraft 24 266 8 927 Leasehold land and property 2 479 8 314 Work in progress 54 949 15 604 131 366 98 598

158 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

31. Cash and cash equivalents at end of year

2016 2015 P’000 P’000

Cash resources 249 131 283 200 Bank overdrafts (47 166) (49 283) 201 965 233 917 Sustainability report Sustainability

32. Subsequent events A dividend of 15 thebe (2015: 15 thebe) per share has been declared and is payable on or about 27 June 2016 to those shareholders registered at the close of business on Friday, 17 June 2016. The dividend shall be paid in Rand to shareholders on the South African register, calculated at the Pula to Rand exchange rate on or about 25 May 2016.

As announced on 6 April 2016, subject to certain conditions the Group acquired a 51% stake in the Governors’ Camp Group of companies in Kenya and Rwanda for approximately US$6.2 million. No other material events took place between the reporting date and the date of this report. Corporate governance Corporate Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 159 Company statement of comprehensive income for the year ended 29 February

2016 2015 Notes P’000 P’000

Revenue 2 47 608 19 694 Operating costs (18 003) (15 537) Foreign exchange gains 1 516 937 Operating profit before items listed below 3 31 121 5 094 Depreciation and amortisation 6,7 (2 004) (984) Interest received 2 630 1 937 Impairment loss on loans (1 519) (1 035) Financing costs 4 (13 115) (7 200) Unrealised foreign exchange loss on loans (46) (2 975) Profit/(loss) before taxation 17 067 (5 163) Taxation 5 (3 587) (666) Total comprehensive income/(loss) for the year 13 480 (5 829)

Company statement of financial position as at 29 February

2016 2015 Notes P’000 P’000

ASSETS Non-current assets 289 970 267 147 Property, plant and equipment 6 31 444 8 158 Intangible assets 7 1 824 2 343 Investment in subsidiaries 8 256 702 256 646 Current assets 138 363 96 545 Trade and other receivables 9 5 381 5 414 Intercompany loans receivable 13 115 438 74 844 Cash and cash equivalents 16 17 544 16 287

Total assets 428 333 363 692

EQUITY AND LIABILITIES Equity attributable to owners of the Company 140 628 161 930 Stated capital 10 156 086 156 086 Accumulated (loss)/profit (15 458) 5 844 Non-current liabilities 23 535 39 780 Long-term liabilities 11 23 535 39 780 Current liabilities 264 170 161 982 Other payables 12 28 987 24 381 Intercompany loans payable 13 188 017 88 327 Bank overdrafts 16 47 166 49 274

Total equity and liabilities 428 333 363 692

160 Wilderness Holdings Limited integrated annual report 2016 Company statement of changes in equity Wilderness About for the year ended 29 February

Stated Accumulated Total capital profit/(loss) equity P’000 P’000 P’000

Balance at 1 March 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) report Sustainability

Balance at 28 February 2015 156 086 5 844 161 930 Dividends paid – (34 782) (34 782) Total comprehensive profit for the year – 13 480 13 480 Balance at 29 February 2016 156 086 (15 458) 140 628

Company statement of cash flows governance Corporate for the year ended 29 February

2016 2015 Notes P’000 P’000

Cash flow from operating activities Cash generated by operations 14 64 847 69 381 Dividends received 35 872 15 635 Annual financial statements financial Annual Interest received 2 630 1 937 Financing costs (13 115) (7 200) Taxation paid 15 (3 587) (666) Net cash inflow from operating activities 86 647 79 087

Cash flow from investing activities Acquisition of intangible assets 7 (321) (440) Acquisition of property, plant and equipment 6 (24 450) (7 949) Acquisition of subsidiary companies (56) – Net cash outflow from investing activities (24 827) (8 389)

Cash flow from financing activities Shareholders’ information Shareholders’ Repayment of long-term liabilities (52 166) (42 656) Increases in long-term liabilities 28 493 – Dividends paid (34 782) (23 100) Net cash outflow from financing activities (58 455) (65 756)

Net increase in cash and cash equivalents 3 365 4 942 Cash and cash equivalents at beginning of year (32 987) (37 929) Cash and cash equivalents at end of year 16 (29 622) (32 987)

Wilderness Holdings Limited integrated annual report 2016 161 Notes to the Company annual financial statements for the year ended 29 February

1. Summary of accounting policies Refer to the summary of significant accounting policies as set out on pages 125 to 132.

2. Revenue

2016 2015 P’000 P’000

Revenue comprises: Dividends received from subsidiaries 35 872 15 635 Lease income 7 365 – Cost recharges 4 371 4 059 47 608 19 694

Revenue has been earned from subsidiary companies.

3. Operating profit

2016 2015 P’000 P’000

Operating profit is arrived at after taking into account the following items: Auditors’ remuneration Current year fees 204 204 Prior year (over)/under provision (24) 14 Other expenses 8 – 188 218

Foreign exchange gains Realised 63 267 Unrealised 1 453 670 Staff costs 10 472 10 110 Directors’ emoluments Executive directors 5 907 1 824

4. Financing costs

2016 2015 P’000 P’000

Bank overdraft 2 834 3 320 Loans Subsidiaries 8 172 1 808 Third parties 2 109 2 072 13 115 7 200

162 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

5. Taxation

2016 2015 P’000 P’000

5.1 Taxation charge Withholding tax on dividends received 3 587 666 Total taxation charge 3 587 666 Sustainability report Sustainability

5.2 Reconciliation of taxation rate to profit before taxation % %

Company normal tax rate 22.0 (22.0) Exempt income (46.2) (66.6) Effect of expenses that are not deductible in determining taxable profit 17.1 84.4 Effect of unused tax losses and tax offsets not recognised as deferred tax assets 7.1 4.2 Withholding tax on dividends received 21.0 12.9

Effective taxation rate 21.0 12.9

The Company has estimated total accumulated tax losses of P33.7 million (2015: P28.2 million) available for set-off against future taxable profit. Corporate governance Corporate 6. Property, plant and equipment

2016 2015

Accumulated Net Accumulated Net Cost depreciation book value Cost depreciation book value P’000 P’000 P’000 P’000 P’000 P’000

Aircraft 32 137 1 028 31 109 7 870 – 7 870 Furniture, fittings and equipment 716 381 335 533 245 288 Total 32 853 1 409 31 444 8 403 245 8 158

Furniture, statements financial Annual fittings and equipment Aircraft Total P’000 P’000 P’000

Movement of property, plant and equipment – 2016 Net book value at beginning of year 288 7 870 8 158 Additions 183 24 267 24 450 Depreciation (136) (1 028) (1 164) Net book value at end of year 335 31 109 31 444

Movement of furniture, fittings and equipment – 2015 Net book value at beginning of year 323 – 323 Shareholders’ information Shareholders’ Additions 79 7 870 7 949 Depreciation (114) – (114) Net book value at end of year 288 7 870 8 158

Wilderness Holdings Limited integrated annual report 2016 163 Notes to the Company annual financial statements continued for the year ended 29 February

7. Intangible assets

2016 2015 P’000 P’000

Intangibles at cost 4 256 3 935 Accumulated amortisation (2 432) (1 592) Net book value at end of year 1 824 2 343

Net book value at beginning of year 2 343 2 773 Additions 321 440 Amortisation (840) (870) Balance at end of year 1 824 2 343

8. Investment in subsidiaries

2016 2015 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 and 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 Limited (Zambia) 8 8 Wilderness Air Botswana (Proprietary) Limited (Botswana) 2 522 2 522 Goodison Two Hundred Fifteen Limited* – – Wilderness Safaris Rwanda Limited 7 – Imizi Eco-Tourism Development Limited 49 – 265 333 265 277 Less: Impairments: Wilderness Safaris Finance & Investments Company (Private) Limited (Zimbabwe) (82) (82) Wilderness Tours Limited (Zambia) (8 549) (8 549) 256 702 256 646

* Amounts less than one thousand Pula.

A list of the Company’s subsidiaries is detailed on pages 169 to 170.

164 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

9. Trade and other receivables

2016 2015 P’000 P’000

Other receivables and prepayments 5 381 5 414 5 381 5 414

There were no significant long outstanding third party trade receivables which require specific impairment at year end. The report Sustainability carrying values of receivables approximates their fair value.

10. Stated capital

2016 2015 P’000 P’000

Issued and fully paid 231 882 451 (2015: 231 882 451) ordinary shares of no par value 156 086 156 086

11. Long-term liabilities

2016 2015 P’000 P’000 governance Corporate

Industrial Development Corporation of South Africa Limited 21 798 60 945 Barclays Bank of Botswana Limited 27 879 – Less: Current portion included in accounts payable (note 12) (26 142) (21 165) Long-term portion 23 535 39 780

Repayable within 2 years 4 343 39 780 Repayable within 3 years 4 343 – Repayable within 4 years 14 849 – 23 535 39 780

Details of the terms and conditions of the IDC loan are reflected in note 16 of the Group accounts. statements financial Annual

12. Other payables

2016 2015 P’000 P’000

Accrued expenses and other payables 2 845 3 216 Current portion of long-term liabilities (note 11) 26 142 21 165 28 987 24 381

Refer to note 13 for details of related party balances included in total above.

The carrying values of liabilities approximates their fair value. Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 165 Notes to the Company annual financial statements continued for the year ended 29 February

13. Intercompany loans

2016 2015 P’000 P’000

Intercompany loans receivable Imizi Eco-Tourism Development Limited (13.1) 6 280 – Namib Wilderness Safaris (Proprietary) Limited (13.1) – 262 Northern Air Maintenance (Proprietary) Limited (13.1) 3 664 3 421 The Namib Lodge Company (Proprietary) Limited (13.2) 4 221 3 858 Wilderness Air Botswana (Proprietary) Limited (13.1) 933 – Wilderness Camps of Zimbabwe (Private) Limited (13.2) 4 126 1 260 Wilderness Safaris Investment and Finance Proprietary Limited (13.1) 1 576 – Wilderness Safaris Proprietary Limited (13.1) 7 573 4 917 Wilderness Safaris Zimbabwe (Private) Limited (13.2) 62 988 45 140 Wilderness Tours Limited (13.1) 15 861 15 986 Wilderness Tours Limited (13.2) 8 216 – 115 438 74 844 Intercompany loans payable Okavango Wilderness Safaris (Proprietary) Limited (13.2) 89 122 54 214 Sefofane Aviation Holdings (Proprietary) Limited (13.2) 27 170 12 572 Wilderness Safaris Limited (13.1) 25 273 21 451 Wilderness Safaris Proprietary Limited (13.1) 46 347 – Wilderness Safaris Rwanda Limited (13.1) 7 – Wilderness Tours Limited (13.1) 98 90 188 017 88 327

13.1 The loans are unsecured, interest free with no fixed terms of repayment. 13.2 The loans are unsecured, bear interest at varying rates with no fixed terms of repayment. 13.3 The entities listed above are all subsidiaries of Wilderness Holdings Limited.

14. Cash generated by operations

2016 2015 P’000 P’000

Profit/(loss) before taxation: 17 067 (5 163) Adjustments for: Depreciation and amortisation 2 004 984 Impairment loss on loans 1 519 1 035 Dividends received (35 872) (15 635) Interest received (2 630) (1 937) Financing costs 13 115 7 200 Unrealised net foreign exchange loss 46 2 975 Operating loss before working capital changes (4 751) (10 541) Working capital changes: Increase in accounts receivable (29 083) (3 587) Increase in accounts payable 98 681 83 509 64 847 69 381

166 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

15. Taxation paid

2016 2015 P’000 P’000

Amounts unpaid at beginning of year – – Amounts charged to profit or loss 3 587 666 Amount unpaid at end of year – – Sustainability report Sustainability 3 587 666 16. Cash and cash equivalents at end of year

2016 2015 P’000 P’000

Bank overdrafts (47 166) (49 274) Cash resources 17 544 16 287 (29 622) (32 987)

The overdraft facility is secured by limited suretyship of P50 000 000 by Wilderness Holdings Limited in favour of Sefofane Aviation Holdings (Proprietary) Limited, Okavango Wilderness Safaris (Proprietary) Limited and Wilderness Safaris Investment and Finance Proprietary Limited. Corporate governance Corporate 17. Financial risk management The Company’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 Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance. Risk management is carried out by the Risk Committee under policies approved by the Board of Directors. The Company identifies, evaluates and hedges financial risks in close cooperation with the Company’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.

Loans and receivables Fair value P’000 P’000 Annual financial statements financial Annual

Financial assets 2016 Included in other receivables 5 381 5 381 Cash and cash equivalents 17 544 17 544 22 925 22 925 2015 Included in other receivables 76 454 76 454 Cash and cash equivalents 16 287 16 287 92 741 92 741 Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 167 Notes to the Company annual financial statements continued for the year ended 29 February

17. Financial risk management continued

Liabilities at amortised cost Fair value P’000 P’000

Financial liabilities 2016 Interest bearing borrowings 49 677 49 677 Other payables (excluding current portion of long-term liabilities) 2 845 2 845 Bank overdraft 47 166 47 166 99 688 99 688 2015 Interest bearing borrowings 60 945 60 945 Other payables (excluding current portion of long-term liabilities) 3 216 3 216 Bank overdraft 49 274 49 274 113 435 113 435

2016 2015 P’000 P’000

Foreign currency sensitivity If the Pula had weakened against the US Dollar by 5% (2015: 5%), then this would have had the following impact: Net increase/decrease in profit before tax 1 152 365 Interest rate sensitivity If the interest rate increased by 5% (2015: 5%), then this would have had the following impact: Net increase in profit before tax 250 149

18. Subsequent events A dividend in specie of USD4 million was declared to the Company on 31 March 2016 from a subsidiary. Refer to note 32 of the Group’s financial statements for additional subsequent events.

168 Wilderness Holdings Limited integrated annual report 2016 Subsidiary and associate companies of Wilderness About Wilderness Holdings Limited

Effective holding

Nature of Shares 2016 2015 business in issue % %

Active subsidiaries Incorporated in Botswana

Baobab Safari Lodges (Proprietary) Limited B 2 698 53.71 53.71 report Sustainability Flamingo Investments (Proprietary) Limited B 300 50.00 50.00 Great Explorations (Proprietary) Limited B 100 100.00 100.00 Hana-Ven (Proprietary) Limited B 100 49.00 49.00 Linyanti Investments (Proprietary) Limited B 40 000 95.00 95.00 Micheletti Bates Safaris (Proprietary) Limited B 5 000 100.00 100.00 Northern Air Maintenance (Proprietary) Limited D 100 100.00 100.00 Okavango Wilderness Safaris (Proprietary) Limited C 100 000 100.00 100.00 Paddle Safaris (Proprietary) Limited D 102 50.00 50.00 Safari Adventure (Proprietary) Limited D 100 70.00 70.00 Santawani Partnership (Proprietary) Limited B 100 50.00 50.00 Sefofane Aviation Holdings (Proprietary) Limited C 100 100.00 100.00 Waves of Africa Tours (Proprietary) Limited D 100 100.00 50.00 governance Corporate Wilderness Air Botswana (Proprietary) Limited D 50 000 100.00 100.00

Incorporated in Zambia African Experience Limited B 500 000 100.00 100.00 Luamfwa Lodge Limited B 20 000 000 100.00 100.00 Wilderness Air Zambia Limited D 5 000 100.00 100.00 Wilderness Tours Limited C 5 000 000 89.00 89.00

Incorporated in Zimbabwe Bamberg Investments (Private) Limited C 10 000 99.00 99.00 Underneath Trading (Private) Limited D 100 50.00 50.00

Wilderness Camps of Zimbabwe (Private) Limited B 100 000 44.61 42.11 statements financial Annual Wilderness Safaris Finance & Investments Company (Private) Limited B 1 000 100.00 100.00 Wilderness Safaris Zimbabwe (Private) Limited B 10 000 100.00 100.00

Incorporated in Bermuda Wilderness Safaris Limited C 12 000 100.00 100.00

Incorporated in Kenya Goodison Two Hundred Fifteen Limited B 100 100.00 100.00

Incorporated in South Africa Wilderness Safaris Investment and Finance Proprietary Limited C 300 000 100.00 100.00

A = Safari Consultancy B = Camp, lodges and safari explorations Shareholders’ information Shareholders’ C = Finance and asset management D = Transfer and touring F = Non-trading

Wilderness Holdings Limited integrated annual report 2016 169 Subsidiary and associate companies of Wilderness Holdings Limited continued

Effective holding

Nature of Shares 2016 2015 business in issue % %

Non-trading companies Botswana Frogiface (Proprietary) Limited F 100 Mowana Consultants (Proprietary) Limited F 150 Okavango Wilderness Safaris Lodges (Proprietary) Limited F 10 000

Incorporated in Luxembourg Norisco Holdings SA C 19 600 20.00 20.00

Zimbabwe Berryland Investments (Private) Limited B 10 000 42.11 42.11 Birding Safaris (Private) Limited F 100 Mana Pools Wildlife Safaris (Private) Limited B 250 000 42.11 42.11 Muroti Investments (Private) Limited F 10 000 Ruckomechi (Private) Limited F 100 Werburgh Marketing (Private) Limited F 100 Woodvalley Lodge (Private) Limited F 100

Zambia The Zambian Touring Company Limited F 5 000 000

A = Safari Consultancy B = Camp, lodges and safari explorations C = Finance and asset management D = Transfer and touring F = Non-trading

170 Wilderness Holdings Limited integrated annual report 2016 Subsidiary and associate companies of Wilderness Safaris Wilderness About Investment and Finance Proprietary Limited

Effective holding

Nature of Shares 2016 2015 business in issue % %

Incorporated in South Africa Gugulesizwe Cultural Centre Proprietary Limited B 100 19.00 19.00

Pafuri Camp Proprietary Limited B 101 100.00 100.00 report Sustainability Rocktail Bay Lodge Proprietary Limited B 466 000 55.00 55.00 Wilderness Air South Africa Proprietary Limited D 101 99.00 99.00 Wilderness Manzengwena Camp Proprietary Limited B 200 72.50 72.50 Wilderness Safari and Adventure Company Proprietary Limited B 100 100.00 100.00 Wilderness Safaris Camps of South Africa Proprietary Limited B 100 100.00 100.00 Wilderness Safaris Proprietary Limited A 100 000 100.00 100.00 Wilderness Touring Cape Proprietary Limited D 100 100.00 100.00

Incorporated in Namibia Damaraland Camp (Proprietary) Limited B 100 60.00 60.00 Doro !Nawas Camp (Proprietary) Limited B 100 55.00 55.00 Kulala (Proprietary) Limited B 400 100.00 100.00 Corporate governance Corporate Kupenda Properties (Proprietary) Limited B 100 100.00 100.00 Namib Travel Shop (Proprietary) Limited A 100 100.00 100.00 Namib Wilderness Safaris (Proprietary) Limited B 200 100.00 100.00 Palmwag Lodge (Proprietary) Limited B 100 100.00 100.00 Serra Cafema Camp (Proprietary) Limited B 100 100.00 100.00 Taimibia (Proprietary) Limited C 100 100.00 100.00 The Namib Lodge Company (Proprietary) Limited B 1 333 333 89.50 89.50 Wilderness Air Namibia (Proprietary) Limited D 300 100.00 100.00

Incorporated in Rwanda Imizi Eco-Tourism Development Limited B 100 51.00 51.00

Wilderness Safaris Rwanda Limited B 100 100.00 100.00 statements financial Annual

A = Safari Consultancy B = Camp, lodges and safari explorations C = Finance and asset management D = Transfer and touring F = Non-trading Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 171 Analysis of ordinary shareholders for the year ended 29 February 2016

Number of % of total Number of % of shares Shareholder spread shareholdings shareholdings shares in issue

1 – 1 000 shares 275 47.83 111 217 0.05 1 001 – 10 000 shares 193 33.56 764 641 0.33 10 001 – 100 000 shares 81 14.09 2 706 176 1.17 100 001 – 1 000 000 shares 10 1.74 4 486 158 1.93 1 000 001 shares and over 16 2.78 223 814 259 96.52 Total 575 100.00 231 882 451 100.00

Number of % of total Number of % of shares Distribution of shareholders shareholdings shareholdings shares in issue

Private companies 19 3.31 84 515 232 36.45 Individuals 463 80.52 53 789 057 23.20 Public companies 4 0.70 58 103 383 25.06 Nominees and trusts 80 13.91 23 400 431 10.09 Other corporations 6 1.04 1 452 093 0.62 Pension funds 2 0.35 10 621 255 4.58 Close corporations 1 0.17 1 000 – Total 575 100.00 231 882 451 100.00

Number of % of total Number of % of shares Shareholder type shareholdings shareholdings shares in issue

Non-public shareholders (Directors) 8 1.39 161 751 008 69.76 Public shareholders 567 98.61 70 131 443 30.24 Total 575 100.00 231 882 451 100.00

172 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

Beneficial shareholders with a holding greater Number of % of shares than 3% of the shares in issue shares in issue

Wine Investments Limited 80 503 570 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 10 863 593 4.68

Botswana Public Officers Pension Fund 10 479 097 4.52 report Sustainability Friedman, R 9 973 810 4.30 Vincent, KNW 9 884 701 4.26 Bell, M 7 197 966 3.10 Total 207 373 399 89.42

JSE share price performance Rand

Closing price 28 February 2015 4.20 Closing price 29 February 2016 5.78 Closing high for the period 7.50 Closing low for the period 4.19 Corporate governance Corporate Total volume traded 374 016 Volume traded as a % of shares in issue 0.16%

BSE share price performance Pula

Closing price 28 February 2015 3.20 Closing price 29 February 2016 4.90 Closing high for the period 4.91 Closing low for the period 3.25 Total volume traded 11 734 629 Volume traded as a % of shares in issue 5.06% Annual financial statements financial Annual Shareholders’ information Shareholders’

Wilderness Holdings Limited integrated annual report 2016 173 Shareholders’ information

174 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

176 Notice of annual general meeting Sustainability report Sustainability 178 Annexure A: Notice of annual general meeting – under special business

180 Contact information

181 Form of proxy

182 Notes to the form of proxy Corporate governance Corporate Annual financial statements financial Annual Shareholders’ information Shareholders’

Damaraland Camp, Namibia Desert-adapted elephant seen in a dry riverbed.

Wilderness Holdings Limited integrated annual report 2016 175 Notice of annual general meeting

Wilderness Holdings Limited Incorporated in Botswana | (Registration number 2004/2986) Registered as an external company in South Africa | (Registration number 2009/022894/10) Share code: WIL | ISIN: BW0000000868 (Wilderness or the Company)

Notice is hereby given that the seventh 5. Ordinary resolution number 2 and to take note that the individual annual general meeting of shareholders Re-election of directors of the registered auditors who will undertake of Wilderness Holdings Limited will Company the audit during the financial year be held at Deloitte House, Plot 64518, ending 28 February 2017 are Fairgrounds Office Park, Gaborone, To re-elect, each by way of a separate Mr Freddie Els and Ms Carmeni Naidoo. Botswana on Tuesday, 30 August 2016 at vote, the following directors retiring, in terms of clause 18.2.1 of the 9:30, for the purpose of transacting the 8. Ordinary resolution number 5 following agenda. Constitution, and who are eligible and have offered themselves for re-election: Remuneration of external auditors To authorise the Audit Committee to 5.1.1 Gavin Tollman Agenda determine the remuneration of the 1. Presentation of annual financial 5.1.2 Parks Tafa external auditors and the auditors’ statements and report 5.1.3 Jochen Zeitz terms of reference. To receive, consider and adopt the audited financial statements for the year Brief CVs in respect of each director 9. Ordinary resolution number 6 ended 29 February 2016. The complete offering himself for re-election are Remuneration of non-executive set of the consolidated audited annual contained in the integrated annual directors report. financial statements, together with To approve remuneration of non- the Auditor’s Report and report of executive directors for the financial 6. Ordinary resolution number 3 the Audit Committee and the report year ended 29 February 2016, in terms of the Remuneration and Nomination Re-election of members of the of clause 20.4 of the Constitution, as Committee, are contained in the Audit Committee recommended by the Board and set out integrated annual report. To re-elect, each by way of a separate in the note below. vote, the following independent non- 2. Dividend executive directors as members of the Non-executive remuneration for the To note that a dividend of 15 thebe per Audit Committee: financial year ended 29 February 2016: share was declared on 25 May 2016 as a 6.1 Malcolm McCulloch Pula final dividend. 6.2 Marcus ter Haar Chairman of the Board 480 000 Resolutions 6.3 Michael Tollman Deputy Chairman 200 000 3. Special resolution The members’ appointment shall be Amendment of clause 13 of the effective from the conclusion of the Non-executive directors 100 000 Constitution of the Company annual general meeting at which this Chairman of the Audit To amend the Constitution of the resolution is passed until the conclusion Committee 50 000 Company by deleting clause 13 in its of the next annual general meeting of entirety, and substituting it with a new the Company. Chairman of the Investment clause 13 as set out in Annexure “A”, Committee 50 000 allowing the Company, inter alia, to Brief CVs in respect of each member purchase its own shares, and hold them offering himself for re-election are Chairman of the as treasury shares, either in the name of contained in the integrated annual Remuneration and the Company or through a subsidiary. report. Nomination Committee 50 000 Chairman of the Risk 4. Ordinary resolution number 1 7. Ordinary resolution number 4 Committee 50 000 Appointment of a director of the Re-appointment of external auditors Chairman of the Safety Company To re-appoint Deloitte & Touche, Review Board 50 000 To approve the appointment of upon the recommendation of the Christophe Vinsonneau to the Board as Audit Committee, as the independent Chairman of the Social, a non-executive director. registered auditors of the Company, Ethics and Sustainability Committee 50 000

176 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

10. Special business: Ordinary the Report of the Remuneration and Other shareholders who hold their resolution number 7 Nomination Committee in the integrated shares in uncertificated form through a annual report. Central Securities Depository Participant Authority for share buy-back (CSDP) or broker and who wish to vote To pass a resolution authorising the 12. General by way of proxy at the annual general Company, in terms of the Constitution meeting, should provide their CSDP or (as amended), by way of a specific To transact such other business as may broker with their voting instructions, approval to purchase and/or be transacted at an annual general in terms of the custody agreement acquire its own shares by itself or meeting. entered into between such shareholders report Sustainability any subsidiary. Subject to the Act, and their CSDP or broker. These the BSE Requirements and the JSE Voting and proxies instructions must be provided to the Requirements, but without prejudice to CSDP or broker by the cut-off time and A member entitled to attend and vote the provisions of sections 66, 69, date advised by the CSDP or broker for may appoint a proxy to attend and vote 70 and 98, and the provisions of section instructions of this nature. If, however, on their behalf, and such proxy need 78 subsection (6), the purchase of the such shareholders wish to attend the not be a member of the Company. The shares may be done on-market or off- annual general meeting in person, then instrument appointing such a proxy market. they will need to request their CSDP or must be deposited at the Secretary’s broker to provide them with a Letter of The Company shall further be entitled to office not less than 24 hours before the Representation in terms of the custody purchase its own shares in terms of the meeting. A proxy form is enclosed with agreement entered into between the authority and/or mandate given to the this notice. dematerialised shareholder and their Board hereunder, for the purposes of CSDP or broker. achieving one or more of the following On a show of hands or by voice, every shareholder of the Company present governance Corporate objectives: By order of the Board in person or represented by proxy • Increasing and/or broadening shall have only one vote in respect the number of shares held by the of the number of shares he holds or general public as free float; represents. • Enhancing or creating the liquidity, demand and/or trading On a poll, every shareholder of B Tumiso of the shares on the BSE and the Company present in person or Group Company Secretary JSE, respectively, or on any other represented by proxy shall have recognised stock exchange on one vote for every share held in the Registered office which the shares of the Company Company by such shareholder or for Botswana may be listed from time to time; every share represented by a proxy. Deloitte House, Plot 64518 • Attracting strategic, technical Fairgrounds, Gaborone, Botswana and/or institutional investors; and A resolution put to the vote shall be Annual financial statements financial Annual • Implementation of, and/or decided by a show of hands or by voice South Africa pursuant to an employee share unless a poll is demanded (on or 373 Rivonia Boulevard incentive scheme. before the declaration of the result on Rivonia, South Africa a show of hands) by not less than PO Box 5219, Rivonia, 2128, South Africa In accordance with the provisions five shareholders having the right to of clause 13 of the Constitution (as vote at the meeting, a shareholder amended), the acquisition or purchase representing not less than 10% of the of own shares in aggregate value may total voting rights of all shareholders not in any financial year exceed five having the right to vote at the meeting percent (5%) of the issued shares of or the Chairperson of the meeting. the Company where the shares are held by the Company, and may not, in Shareholders who hold their shares any financial year, exceed ten percent in certificated form or are “own-name registered” dematerialised shareholders

(10%) of the issued shares of the information Shareholders’ Company where the shares are held by a and who are unable to attend the subsidiary of the Company. annual general meeting, but wish to be represented at the annual general meeting must complete and return the 11. Advisory endorsement of the form of proxy attached in accordance remuneration philosophy with the instructions contained therein To endorse through a non-binding to be received by the Secretary’s office advisory vote, the Company’s not less than 24 hours before the remuneration philosophy as set out in meeting.

Wilderness Holdings Limited integrated annual report 2016 177 ANNEXURE A Notice of annual general meeting – under special business

Wilderness Holdings shareholders, purchase its own by ordinary resolution by shares on-market or off-market, any general meeting of the Limited – amendments or otherwise acquire its own Company at any time prior to to the Constitution of the shares. such annual meeting. Company 13.1.2 The Company shall further be 13.1.5 Subject to the Act, the BSE entitled, as determined by, and Requirements and the JSE Amendments to clause 13 of with the approval of the Board, Requirements, and pursuant the Constitution – purchase of and an ordinary resolution of to the authority granted under own shares the shareholders, to purchase this clause 13, the Board shall its own shares on-market in the exercise of its discretion, “13 Purchase of own shares or off-market, or otherwise determine, resolve and/or 13.1 Subject to the provisions of acquire its own shares, for specify, from time to time in section 66 of the Act, and achieving one or more of the each financial year: without prejudice to any rights following objectives, and for 13.1.5.1 the maximum number of shares attaching to existing shares, the purposes of: authorised to be acquired by the Company may with the 13.1.2.1 returning surplus cash to the the Company; approval of the Board and shareholders; by ordinary resolution of the 13.1.5.2 the price and/or the amount of Shareholders purchase or enter 13.1.2.2 increasing earnings per share; the consideration to be paid by into a contract to purchase all the Company for the purchase or any of its own fully paid up 13.1.2.3 increasing and/or broadening or acquisition of such shares; shares of any class. the number of shares held by the general public as free float; 13.1.5.3 whether the number of shares 13.2 A member may at any time so purchased shall be held request the Company to 13.1.2.4 enhancing or creating the by the Company and/or its purchase all or part of his liquidity, demand and/or subsidiaries as the Treasury shares and, if such request trading of the shares on the Shares (as defined in clause is made, the Company shall BSE and JSE, respectively, or 13.2 below), which shares, shall purchase his shares. on any other recognised stock not be deemed cancelled; exchange on which the shares 13.3 In the event that the Company of the Company may be listed 13.1.5.4 the manner in which such purchases its own shares, from time to time; shares shall be purchased those shares shall be cancelled or acquired by the Company, and the amount of the 13.1.2.5 increasing the net assets per whether on-market, off-market, Company’s stated capital shall share; by means of a circular to all the be reduced by the amount of shareholders, tender offers, or the consideration paid by the 13.1.2.6 attracting strategic, technical sale and purchase agreements Company for the shares.” and/or institutional investors to all or individual shareholders Clause 13 is hereby amended by deleting 13.1.2.7 increasing the gearing of the or otherwise; it in its entirety, and substituting it with Company; and 13.1.5.5 the price and/or the amount of the following text: 13.1.2.8 implementation of, and/or the consideration to be paid by pursuant to an employee share the Company for the purchase “13 Purchase of own shares incentive scheme. or acquisition of such shares 13.1 Authority to purchase own which price shall be fair and shares 13.1.3 The approval pursuant to reasonable to the Company and clauses 13.1.1 and 13.1.2 may be to all its existing shareholders 13.1.1 Subject to the Act, the BSE a general approval or a specific in accordance with sections 53 Requirements and the JSE approval for a particular (1) (b), 66 (4) and 70 (1) of the Requirements, but without acquisition. Act; and prejudice to the provisions of sections 66, 69, 70 and 13.1.4 If the approval granted in 13.1.5.6 in all cases, that there are 98, and the provisions of accordance with clause reasonable grounds for section 78 subsection (6), 13.1.1 and 13.1.2 is a general believing that the Company the Company may with the approval, it shall be valid only would satisfy the solvency test approval of the Board and until the next annual meeting in accordance with sections 4, an ordinary resolution of the or it may be revoked or varied 58, 65 (5) and 71 (2) of the Act.

178 Wilderness Holdings Limited integrated annual report 2016 About Wilderness About

13.2 Treasury Shares 13.3 Exercise of Rights of Treasury 13.4.2.1 determine the amount of the Shares consideration for which the 13.2.1 Upon a purchase of shares in Treasury Shares shall be sold accordance with the provisions 13.3.1 In the event that the Treasury and transferred; and of clause 13.1 above, the Shares are held by the Company may: Company, the Company shall 13.4.2.2 resolve that, in its opinion, not be entitled to exercise any the consideration is fair and 13.2.1.1 hold the shares (or any of them) rights in respect of the Treasury reasonable to the Company, itself in treasury (“the Treasury Shares, nor attend and/or and to all existing shareholders. report Sustainability Shares”), or hold the Treasury vote at any meetings, and any Shares in a subsidiary company purported exercise of such 13.4.3 The Company shall not grant in accordance with section rights shall be void. or sell any Treasury Shares or 78(6) of the Act; enter into any obligations to 13.3.2 No dividend may be paid, and transfer such Treasury Shares 13.2.1.2 deal with any of the Treasury no other distribution (whether where the Company has Shares, at any time, in in cash or otherwise) of the received notice in writing of a accordance with the provisions Company’s assets (including takeover scheme, or where the of this clause 13; and any distribution of assets to BSE makes a public notification members on a winding up) to the share market that a 13.2.1.3 cancel any of the Treasury may be made to the Company, takeover offer for more than Shares, at any time, in in respect of the Treasury twenty percent (20%) of the accordance with the provisions Shares. Company’s issued shares is to of this clause 13. be made. 13.3.3 Nothing in this clause 13 shall governance Corporate 13.2.2 Where the Treasury Shares prevent an allotment of shares 13.5 Cancellation of the Treasury are held by the Company, the as fully paid bonus shares in Shares aggregate value of the Treasury respect of the Treasury Shares, Shares held shall not, in any or the payment of any amount The Company may cancel any financial year, exceed five payable on the redemption of of the Treasury Shares whereon percent (5%) of the issued the Treasury Shares (if they are the amount of the Company’s shares of the Company. redeemable shares). stated capital shall be reduced accordingly by the amount of 13.2.3 Where the Treasury Shares 13.3.4 Any shares allotted as fully shares so cancelled. are held by a subsidiary of the paid bonus shares in respect Company, the aggregate value of the Treasury Shares shall be 13.6 Financing the Purchase of of the Treasury Shares held treated as if purchased by the Treasury Shares shall not, in any financial year, Company, at the time they were exceed ten percent (10%) of the 13.6.1 The Company shall be statements financial Annual allotted, in circumstances in issued shares of the Company. entitled to finance the sale which this clause 13.3 (Exercise and purchase of the Treasury of Rights of Treasury Shares) 13.2.4 Upon the purchase and/or Shares by means of one or applies or applied. acquisition, the name of the more of the following: Company or its subsidiary (as 13.4 Disposal of the Treasury Shares the case may be) as the holder 13.6.1.1 distributable profits of the of the Treasury Shares, shall be 13.4.1 Where the shares are held as Company; entered into the share register Treasury Shares, the Company 13.6.1.2 the proceeds of a new issue of as the shareholder holding the may at any time: Treasury Shares. shares made for the purpose of 13.4.1.1 sell the shares (or any of them) financing the purchase of the 13.2.5 Upon the purchase and/or for a cash consideration; or Treasury Shares; acquisition of the Treasury 13.6.1.3 capital raising, rights issues,

Shares by the Company or 13.4.1.2 transfer the shares (or any of information Shareholders’ its subsidiary, notice shall be them) for the purposes of or and/or debt instruments; issued by the Company or its pursuant to an employee share 13.6.1.4 raising funding and/or debt; subsidiary, as the case may be, incentive scheme. and/or to the Registrar within thirty 13.4.2 Prior to a sale of any of the (30) days of the purchase and/ 13.6.1.5 agreements underwriting the Treasury Shares pursuant to or acquisition. sale of the Treasury Shares.” clause 13.4.1.1, the Board shall:

Wilderness Holdings Limited integrated annual report 2016 179 Contact information

Botswana corporate Transfer secretaries Auditors in South Africa Transaction Management Services Deloitte & Touche information (Proprietary) Limited Building 1 Incorporated in the trading as Corpserve Botswana The Woodlands. Woodlands Drive Unit 206, 2nd Floor Woodmead, South Africa Republic of Botswana Plot 64516 Private Bag X6, Gallo Manor, 2052 Registration number 2004/2986 Showgrounds Close South Africa Fairgrounds Office Park Registered address Gaborone, Botswana PO Box 1583, AAD Bankers Deloitte House Gaborone, Botswana The Standard Bank of South Africa Limited Plot 64518 7th Floor Fairgrounds Office Park Standard Bank Centre Gaborone, Botswana A member of the IFSC 3 Simmonds Street Private BR 159, Broadhurst Botswana International Financial Johannesburg, 2001 Gaborone, Botswana Services Centre South Africa Plot 50676, Fairgrounds Office Park Group Company Secretary Private Bag 160, Gaborone, Botswana Sponsor Bame Tumiso Rand Merchant Bank Limited Deloitte & Touche House Legal advisers A division of FirstRand Bank Limited Plot 64518 Collins Newman & Co 1 Merchant Place Fairgrounds Office Park Dinatla Court Corner Fredman Drive and Rivonia Road Gaborone, Botswana Plot 4863 Sandton, 2196, South Africa Gaborone, Botswana PO Box 786273, Sandton, 2146 Primary listing PO Box 882, Gaborone, Botswana South Africa Botswana Stock Exchange Exchange House South Africa Corporate Transfer secretaries Office Block 6 Plot 64511 Fairgrounds Computershare Investor Services Private Bag 00417, Gaborone, Botswana information Proprietary Limited Registered as an external 70 Marshall Street Auditors in Botswana Johannesburg, 2001, South Africa company in South Africa PO Box 61051, Marshalltown, 2107 Deloitte & Touche Registration number 2009/022894/10 South Africa Deloitte & Touche House Plot 64518 Fairgrounds Office Park Registered address Gaborone, Botswana 373 Rivonia Boulevard PO Box 778, Gaborone, Botswana Rivonia, South Africa PO Box 5219, Rivonia, 2128 Bankers South Africa Stanbic Bank Limited Secondary listing Stanbic House Plot 50672 Johannesburg Stock Exchange Off Machel Drive, Fairground JSE Limited One Exchange Square Private Bag 00168, Gaborone, Botswana Gwen Lane, Sandown, 2196 Private Bag X991174 Sandton, 2146 South Africa First National Bank of Botswana Ngami Centre Plot 152 Maun, Botswana Private Bag 231, Maun, Botswana

180 Wilderness Holdings Limited integrated annual report 2016 Form of proxy Wilderness About

Wilderness Holdings Limited Incorporated in Botswana | (Registration number 2004/2986) Registered as an external company in South Africa | (Registration number 2009/022894/10) Share code: WIL | ISIN: BW0000000868 (Wilderness or the Company)

Only for use by shareholders of Wilderness shares in certificated or dematerialised “own-name registered” form. Other dematerialised shareholders must inform their CSDP or broker of their intention to attend the annual general meeting to be held at Deloitte House, Plot 64518, Fairgrounds Office Park, Gaborone, Botswana,

on Tuesday, 30 August 2016 at 9:30, in order that the CSDP or broker may issue them with the necessary Letters of Representation to attend, or provide the CSDP or report Sustainability broker with their voting instructions should they not wish to attend the annual general meeting in person.

I/We (Full name in BLOCK LETTERS please) of (address)

Telephone (work) Telephone (home) (area code and number) (area code and number) being a shareholder of Wilderness and holder of number of ordinary shares, hereby appoint

1. or failing him/her

2. or failing him/her

3. the Chairman of the annual general meeting as my/our proxy to act for me/us at the annual general meeting of the Company to be held at Deloitte House, governance Corporate Plot 64518, Fairgrounds Office, Gaborone, Botswana, on Tuesday, 30 August 2016 at 9:30 and at any adjournment thereof for the purpose of considering, and if deemed fit, passing with or without modification, the resolutions and/or abstain from voting as indicated on the resolution to be considered at the said meeting

For Against Abstain

Special resolution: Amendment of clause 13 of the Constitution of the Company Ordinary resolution number 1 • Christophe Vinsonneau Ordinary resolution number 2 • Gavin Tollman • Parks Tafa • Jochen Zeitz Ordinary resolution number 3 • Malcolm McCulloch Annual financial statements financial Annual • Marcus ter Haar • Michael Tollman Ordinary resolution number 4 Ordinary resolution number 5 Ordinary resolution number 6 Ordinary resolution number 7: Authority to purchase own shares Advisory endorsement of the remuneration philosophy

Please indicate with an “X” in the spaces above how you wish your votes to be cast. If no indication is given the proxy will vote or abstain at his/her discretion. Any member of the Company entitled to attend and vote at the annual general meeting may appoint a proxy or proxies to act for him/her and vote in his/her stead. A proxy need not be a member of the Company. Every person present and entitled to vote at the annual general meeting shall, on a show of hands or voice, have one vote only, but in the event of a poll, every share shall have one vote. Please read the notes and instructions applying on the reverse hereof.

Signed at on 2016 information Shareholders’

Name (Name in BLOCK LETTERS please)

Signature

Assisted by me Full names of signatory/ies if signing in a representative capacity (Name in BLOCK LETTERS please)

Wilderness Holdings Limited integrated annual report 2016 181 Notes to the form of proxy

Instructions for signing and 3. The date must be filled in on this 9. The Chairman of the annual general lodging this form of proxy proxy form when it is signed. meeting may reject or, provided that the Chairman is satisfied as 4. The completion and lodging of this 1. A Wilderness shareholder may to the manner in which a member form of proxy will not preclude the insert the name of a proxy or the wishes to vote, accept any form of relevant Wilderness shareholder names of two alternative proxies proxy, in his absolute discretion, from attending the annual general of the Wilderness shareholder’s which is completed other than in meeting and speaking and voting choice in the space/s provided, accordance with these notes. in person thereat to the exclusion with or without deleting “the of any proxy appointed in terms 10. If required, additional forms Chairman of the annual general hereof. Where there are joint of proxy are available from the meeting”, but any such deletion holders of shares, the vote of the transfer secretaries. must be initialled by the Wilderness senior joint holder who tenders a shareholder concerned. The person vote, as determined by the order 11. Wilderness shareholders who are whose name appears first on the in which the names appear in unable to attend any adjourned form of proxy and who is present the register of members, will be meeting may lodge their form of at the annual general meeting will accepted. proxy for such adjourned meeting be entitled to act as proxy to the with the Company not less than exclusion of those whose names 5. Documentary evidence establishing 24 hours before the adjourned follow. the authority of a person meeting. signing this form of proxy in a 2. Please insert an “X” in the relevant representative capacity must be 12. Dematerialised shareholders, other spaces according to how you wish attached to this form of proxy than with “own-name registration”, your votes to be cast. However, unless previously recorded by must NOT complete this form if you wish to cast your votes in the transfer secretaries or waived of proxy and must provide their respect of a lesser number of by the Chairman of the annual CSDP or broker with their voting shares than you own in Wilderness, general meeting of Wilderness instructions in terms of the custody insert the number of ordinary shareholders. agreement entered into between shares held in respect of which you such shareholders and their CSDP desire to vote. Failure to comply 6. Any alterations or corrections or broker. with the above will be deemed to made to this form of proxy must be authorise the proxy to vote or to initialled by the signatory/ies. abstain from voting at the annual general meeting as he/she 7. A minor must be assisted by his/ deems fit in respect of all the her parent or guardian unless the shareholder’s votes exercisable relevant documents establishing thereat. A Wilderness shareholder his/her legal capacity are produced or his/her proxy is not obliged to or have been registered by transfer use all the votes exercisable by secretaries. the Wilderness shareholder or by his/her proxy, but the total of the 8. Forms of proxy must be received votes cast and in respect whereof by the Secretary, Wilderness abstentions are recorded may Holdings Limited, Deloitte House, not exceed the total of the votes Plot 64518, Fairgrounds Office Park, exercisable by the shareholder or Gaborone, Botswana, email: by his/her proxy. [email protected] not less than 24 hours before the meeting.

182 Wilderness Holdings Limited integrated annual report 2016 Volcanoes National Park, Rwanda Endangered mountain gorilla.

“The opportunity to use the Wilderness Safaris model of responsible ecotourism to contribute to positive conservation and community empowerment in such a unique and exciting environment is exactly why we do what we do”. Keith Vincent, Group CEO 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. www.wilderness-group.com