SUN INTERNATIONAL SUN INTERNATIONAL 2017 INTEGRATED ANNUAL REPORT ANNUAL 2017 INTEGRATED 2017 INTEGRATED 2017ANNUAL INTEGRATED REPORT ANNUAL REPORT Our vision To be an internationally recognised and respected gaming and hospitality group that provides memorable experiences for our guests, offers rewarding employment for our people, delivers superior returns for our shareholders and creates genuine value for the communities in which we exist Improve our existing operations and our guest experience Protect and leverage our existing asset VISION, MISSION, portfolio OUR Grow our business VALUES AND into new areas and STRATEGIC products STRATEGIC OBJECTIVES OBJECTIVES Our people Governance and sustainability Our mission To create great memories for our guests, people and stakeholders Teamwork: We treat each other with respect and work together to create great memorable experiences for all Our values our stakeholders Our values represent an Customer first: Our customer is at the heart of all we do and we exceed unwavering commitment their expectations every time to behaving in a Passion: We inspire each other with consistent, positive our positive attitude and energy as we manner every day, in strive to be the best everything we do Professionalism: We use our skills and competence to provide the highest standard of work at all times CONTENTS ABOUT THIS REPORT SALIENT FEATURES Flap Vision, mission, values and strategic objectives We are pleased to present Sun International Limited’s ifc About this report 2017 integrated annual report to our stakeholders. 1 Salient features INTEGRATED ANNUAL REPORTING FRAMEWORKS OUR DECK OF CARDS REPORTS AND Our 2017 integrated annual report is primarily guided by 2 Chairman’s message INFORMATION REPORT PURPOSE the International Integrated Reporting Council’s (IIRC) 4 Group structure AVAILABLE ONLINE Sun International Limited reports in a holistic, recommendations for integrated reporting (the <IR> 6 Global presence framework). Our sustainability information contained in this Opened Transparency and transparent and integrated manner to assist our report and online is guided by the Global Reporting Initiative Debt at 8 Business model accountability stakeholders in making more informed decisions Revenue up Time Square Transaction 12 Operating environment (GRI) Sustainability Reporting Guidelines. This report is also entered into to 2 Corporate governance about our business. We aim to provide our prepared in accordance with the JSE Limited Listings R15 billion casino and 15 Stakeholder engagement 12% report stakeholders with a focused and concise report Requirements and the South African Companies Act, 71 of with South Africa arena on time increase interest OUR DECK OF CARDS OUR DECK and 18 Material issues Social and ethics report that highlights both our successes and challenges 2008. A register of our application of the King IV governance debt to however, in Sun Dreams 20 Risk management King IV application EBITDA up during the period under review. principles is available online at www.suninternational.com. revenues are to register Our group annual financial statements (AFS) follow 13% EBITDA at B-BBEE compliance International Financial Reporting Standards (IFRS). well below 64.66% report 3.7% OUR GAME PLAN REPORT SCOPE AND BOUNDARY expectations 24 Strategic objectives Sustainability This is our primary report to stakeholders and covers the ASSURANCE 26 Chief executive’s review Our people financial period 1 January 2017 to 31 December 2017, 30 Strategic performance overview Health and safety following a change in our financial reporting from June to Standard/Code Assurance provider 31 Improve our existing operations Environment December, to align with our Chilean operations statutory requirements for a December year end. The report includes all The financial IFRS PricewaterhouseCoopers Inc and our guest experience Socio-economic information http://ir2017. 24 34 Protect and leverage our development Sun International’s subsidiaries and operating units, locally and presented on suninternational.com/ existing asset portfolio Enterprise and supplier internationally. Our report is structured around our leadership pages 46 to 55 downloads/downloads/pdf/ 36 Grow our business into new development reviews, business overview (our deck of cards), our strategic – extracted from Sun_International_IAR2017_ areas and products UN Global Compact performance and outlook (our game plan), our financial the group’s Group_AFS.pdf Several 37 Our people Report performance (our payouts) and our governance transparency audited AFS Launched OUR GAME PLAN Independent assurance and accountability (rules of the game). Achieved properties in 39 Governance and sustainability Sustainability GRI IRAS Ongoing statement Sun 39 Health and safety information1 AA1000AS http://ir2017. a group drought-stricken system The content covers the reporting period’s most material issues. International’s 41 Environment In some cases, this includes the period up to the report’s King IV suninternational.com/ areas reduced Annual financial other-gaming-information/ Level 1 improvements 44 Socio-economic finalisation. Material issues are matters that could substantively SunWay development statements water and influence the assessment of providers of capital and other B-BBEE Audit committee report B-BBEE Tourism Code Empowerdex culture 45 Enterprise and supplier stakeholders regarding the group’s ability to create value over http://ir2017. status consumption by operational development Directors' statement of information programme the short, medium and long term. In order to achieve our suninternational.com/ efficiencies responsibility other-gaming-information/ >30% Company secretary strategic objectives and manage our risks, these material issues certificate are continuously monitored by Sun International and its board Property risk Internationally Marsh Risk Consulting Value added statement as the governing body. Further detail on our material issues is audits Recognised 46 OUR PAYOUTS Audit Opinion set out on page 18 and http://ir2017.suninternational.com/ Code of 46 Chief financial officer’s review Directors' report our-deck-of-cards/ Practice: 49 Segmental review Group AFS NFPA and SANS Codes Accounting policies OUR PAYOUTS Company AFS Internal control Group Internal Audit functions Shareholder information DIRECTORS’ APPROVAL Letter from the chairman The board acknowledges its responsibility to ensure the 1 Sustainability information for the 2016 year was restated due to the change in the group’s year end from June to December. RULES OF THE GAME Notice of annual general integrity of information contained in the integrated annual meeting (AGM) report and has applied its collective mind in the preparation 56 Board of directors AGM explanatory notes of this report. The group audit committee was instrumental 58 Executive leadership Summarised consolidated in providing guidance on this process and keeping the board OPERATIONAL CONTEXT 56 59 Corporate governance overview financial results abreast of the reporting progress. South Africa continues to contribute the majority of group OUR NEW FORMULA FOR SUCCESS Directors standing for revenue at 70%, with Latam contributing 29% and Nigeria 1%. To improve our business performance, we created our new formula for success that embraces our vision and values in line with our election/re-election CV’s The board is of the opinion that this integrated annual report Gaming is the primary contributor to group revenue at 73%, brand promise and strategic objectives. Remuneration policy is presented in compliance with the <IR> framework and the alternate gaming contributes 7%, food and beverage 9%, rooms RULES OF THE GAME RULES Remuneration report information is correct and relevant. The report was approved 8% and other revenues 3%. Further detail on our formula for success is set out on page 37 and online http://ir2017.suninternational.com/our-game-plan/ Board of directors and by the board on 29 March 2018. prescribed officers REPORT VERSIONS Corporate data and Top-line enablers = the positive attributes that engage our people, helping them achieve their full potential, while creating great, administration For the period under review, the group has produced limited print OTHER GAMING Form of proxy copies of the integrated annual report. The printed report is a memorable experiences for our guests. INFORMATION summarised version of our full integrated annual report Other gaming available at www.suninternational.com Bottom-line disablers = the negative points that we need to eliminate to achieve our vision of being an internationally recognised and 63 Administration 63 information respected gaming and hospitality group. 63 Forward-looking statements Room statistics Valli Moosa Anthony Leeming REPORT FOOTPRINT INFORMATION OTHER GAMING OTHER Casino statistics Chairman Chief executive Sun International is committed to reducing its environmental footprint 29 March 2018 29 March 2018 wherever possible. With additional information available online, the printed report remains a summary document. Going forward, the group will produce an online integrated annual report only. NAVIGATION ICONS For more information see our website Please refer to page/s in this Please email us at suninternational.com report for more information for more information STAKEHOLDER FEEDBACK We welcome stakeholders’ feedback on our reporting, which can be sent to [email protected] SUN INTERNATIONAL INTEGRATED ANNUAL REPORT 2 0 1 7