CONDENSED CONSOLIDATED REVIEWED PROVISIONAL ANNUAL RESULTS for the year ended 28 February 2014 Gooderson Leisure Corporation Limited GOODERSON LEISURE CORPORATION LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1972/004241/06) (JSE code: GDN ISIN: ZAE000084984) (“Gooderson” or “the company” or “the group”) GROUP FINANCIAL PERFORMANCE Revenue of R120.25 million up 9% EBITDA of R16.22 million up 19% HEPS 5.26 cents up 32% Cash generated from operations up 74% to R16.80 million NAV of 154.73 Gooderson Leisure Corporation Limited P a g e | 2 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 CONDENSED CONSOLIDATED REVIEWED STATEMENT OF FINANCIAL POSITION AS AT 28 February 2014 28 February 2013 Reviewed Audited R R ASSETS Non-current assets 253,257,393 238,034,741 Property, plant and equipment 221,906,783 207,702,994 Goodwill 999,563 999,563 Investments in associates 1,063,729 817,725 Timeshare development 15,691,650 15,863,429 Deferred tax 6,429,425 5,883,484 Long term debtors 7,166,243 6,767,546 Current assets 20,708,880 28,019,321 Inventories 2,020,617 1,744,606 Other financial assets 175,000 175,000 Current tax receivable 38,353 507,620 Trade and other receivables 15,156,857 16,125,034 Cash and cash equivalents 3,318,053 9,467,061 Total Assets 273,966,273 266,054,062 EQUITY AND LIABILITIES Equity capital and reserves 186,157,385 181,532,902 Share capital 16,276,235 15,916,235 Reserves 76,286,417 76,296,646 Retained income 93,594,733 89,320,021 Non-current liabilities 58,608,919 61,839,960 Other financial liabilities 26,390,226 29,359,582 Deferred income 3,182,330 3,715,806 Deferred tax 29,036,363 28,764,572 Current liabilities 29,199,969 22,681,200 Other financial liabilities 6,446,011 4,367,316 Current tax payable 621,130 311,040 Trade and other payables 17,834,282 17,431,150 Deferred income 572,754 571,694 Bank overdraft 3,725,792 ― Total liabilities 87,808,888 84,521,160 Total Equity and Liabilities 273,966,273 266,054,062 Shares in issue 120,313,973 120,000,000 Net asset value per share (cents) 154.73 151.28 Net tangible asset value per share (cents) 153.90 150.44 Gooderson Leisure Corporation Limited P a g e | 3 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 CONDENSED CONSOLIDATED REVIEWED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 February 2014 28 February 2013 Reviewed Audited R R Revenue 120,251,630 110,561,989 Cost of sales (18,692,068) (16,451,065) Gross profit 101,559,562 94,110,924 Net operating expenses (85,337,534) (80,528,671) EBITDA 16,222,028 13,582,253 Profit on sale of business ― 15,793,402 Depreciation (5,545,981) (5,644,017) Profit before interest and taxation 10,676,047 23,731,638 Profit from Associates 245,953 431,748 Net interest paid (2,447,970) (2,681,517) Profit before taxation 8,474,030 21,481,869 Taxation (2,131,200) (1,925,995) Profit for the year 6,342,830 19,555,874 Other comprehensive income : Revaluation surplus on property valuation ― 29,150,818 Taxation related to components of other comprehensive income ― (7,352,536) Other comprehensive income (loss) for the year net of taxation ― 21,798,282 Total comprehensive income 6,342,830 41,354,156 Reconciliation of Headline Earnings: Profit attributable to ordinary shareholders 6,342,830 19,555,874 Adjusted for profit on disposal of property, plant and equipment (16,382) (14,791,545) Headline Earnings 6,326,448 4,764,329 Weighted average shares in issue on which earnings are based 120,313,973 120,000,000 Diluted number of shares in issue 120,411,232 125,000,000 Number of shares in issue 125,000,000 125,000,000 SUPPLEMENTARY INFORMATION EARNINGS, HEADLINE EARNINGS PER SHARE Earnings per share (EPS) (cents) 5.27 16.30 Headline earnings per share (HEPS) (cents) 5.26 3.97 Diluted earnings per share (cents) 5.27 15.64 Diluted headline earnings per share (cents) 5.25 3.81 Dividends per share (cents) 1.76 1.60 Gooderson Leisure Corporation Limited P a g e | 4 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CHANGES IN EQUITY Share Share Share based Revaluation Retained Total capital premium payment reserve income equity reserve R R R R R R Balance at 1 March 2012 Changes in equity 1,200 15,915,035 399,729 54,331,588 71,491,357 142,138,909 Total comprehensive income for the year — — — — 19,555,874 19,555,874 Transfer of share based payment ― ― (272,790) ― 272,790 ― Share based payment reserves movement ― ― 39,836 ― ― 39,836 — — — 21,798,283 — 21,798,283 Revaluation surplus Dividends — — — — (2,000,000) (2,000,000) Total changes — — (232,954) 21,798,283 17,828,664 39,393,993 Balance at 1 March 2013 1,200 15,915,035 166,775 76,129,871 89,320,021 181,532,902 Changes in equity Total comprehensive income for the year ― ― ― ― 6,342,830 6,342,830 Transfer of share based payment ― ― (57,082) ― 57,082 ― Share based payment reserves movement ― ― 46,853 ― ― 46,853 Dividends ― ― ― ― (2,125,200) (2,125,200) Options exercised during the year 6 359,994 ― ― ― 360,000 Total changes 6 359,994 (10,229) ― 4,274,712 4,624,483 Balance at 28 February 2014 1,206 16,275,029 156,546 76,129,871 93,594,733 186,157,385 Gooderson Leisure Corporation Limited P a g e | 5 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 28 February 2014 28 February 2013 Reviewed Audited R R Cash flows from Operating Activities 12,741,368 5,856,547 Cash generated from operations 16,808,764 9,678,079 Interest income 382,026 460,086 Finance costs (2,829,996) (3,141,603) Tax paid (1,619,426) (1,140,015) Cash flows from Investing Activities (19,960,307) 357,920 Purchase of property, plant and equipment (19,808,441) (15,254,627) Sale of property, plant and equipment 75,052 233,044 Sale of business ― 19,500,000 (Increase) / Decrease in timeshare development 171,779 (6,373,374) (Increase) / Decrease in long term debtors (398,697) 2,252,877 Net cash from Financing Activities (2,655,861) (6,518,936) Proceeds on share issue 360,000 ― Proceeds / (repayment) of other financial liabilities (890,661) (4,518,936) Dividends paid (2,125,200) (2,000,000) Total cash inflow / (outflow) for the year (9,874,800) (304,469) Cash at beginning of year 9,467,061 9,771,530 Total cash at end of the year (407,739) 9,467,061 Gooderson Leisure Corporation Limited P a g e | 6 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 COMMENTARY ON GOODERSON LEISURE CORPORATION LIMITED OVERVIEW AND FINANCIAL RESULTS The trading performance of the group continued to reflect good growth with an increase in activity levels during the second half of the financial year as a result of strong sales, superior products and service quality available within the group. The group purchased the remaining property of Bushlands Game Lodge (Pty) Ltd for R2.2 million in December 2013. Year on year growth was achieved by the acquisition of Monks Cowl Golf Resort and the group added a further 18 rooms in November 2013 as part of the groups stated growth strategy. The group has launched an in-house timeshare points club in January 2014 (Gooderson Vacation Club) which will supplement revenue streams and increase profitability. Revenue from continuing operations increased by 9% to R120.25 million (2013: R110.56 million). Operating expenses were well managed and increased by 6% to R85.33 million (2013: R80.52 million) following the implementation of various cost containment measures. EBITDA increased by 19% from R13.58 million to R16.22 million due to increased volumes and good cost control and the EBITDA margin was one percentage point up on last year. Headline earnings per share (HEPS) rose by 32% to R6.32 million (2013: R4.76 million). The net asset value (NAV) per share increased from 151.28 cents per share to 154.73 cents per share. SEGMENTAL ANALYSIS The chief operating decision maker has been identified as the groups board of directors. The board reviews the group’s internal reporting in order to assess performance and allocate resources. The group is divided into two operating segments namely Hotels / Lodges and Timeshare. Profit / (Loss) FINANCIAL YEAR END 28 FEBRUARY 2014 Revenue before taxation Assets Liabilities Hotels and Lodges 103,300,242 7,382,738 231,950,718 51,372,953 Timeshare 16,951,388 3,293,309 34,309,048 6,778,442 Total segments 120,251,630 10,676,047 266,259,766 58,151,395 Income from equity ― 245,953 ― ― Net Interest Income / (Paid) ― (2,447,970) ― ― Unallocated corporate assets and liabilities ― ― 7,706,507 29,657,493 Total 120,251,630 8,474,030 273,966,273 87,808,888 Gooderson Leisure Corporation Limited P a g e | 7 Condensed Consolidated Reviewed Provisional Annual Results For the year ended 28 February 2014 SOCIAL RESPONSIBILITY AND BROAD BASED BLACK ECONOMIC EMPOWERMENT The group remains fully committed to improving all aspects of transformation including ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.