SUN INTERNATIONAL LIMITED

2016 Integrated Annual Report

Inputs

We use each of the six capitals and appreciate that there are trade-offs between them. These trade-offs are taken into account to preserve shareholder value.

	Financial capital
	•	Internally generated cash flows R2 023 million
	•	Debt R14 062 million

	Productive capital
	•	Bricks and mortar of our 32 properties
	•	17 466 Slot machines and 665 gaming tables

	Human capital
	•	People’s skills and experience 13 114 employees

	Intellectual capital
	•	Brand
	•	28 gaming licences
	•	6 000 LPM licences
	•	Ability to ensure our properties are all aligned with our strategic objectives and can meet set standards and targets
	•	Investment in governance structures
	•	IT systems
	•	Wealth of management expertise

	Social and relationship capital
	•	Stakeholder relationships – guests, regulators and communities
	•	Responsible gambling

	Natural capital
	•	Physical locations
	•	Energy consumption
	•	Water consumption
	•	Biodiversity

Business activities

We offer gaming, hospitality and entertainment to our guests through our casino, hotel and resort properties. We are leveraging our core existing business and using our track record and management skills to take advantage of growth opportunities in emerging markets. We are invested in alternate gaming such as the Limited Payout Machine (LPM) industry and online sports betting.

Gaming

Our gaming licences are the single most critical enabler of our ability to operate. Gaming contributes 77% of group revenue. We continuously evaluate our licences to ensure they remain relevant and are used optimally.

Number of slot machines

South African operations
10 190

Other African operations
280

Latam operations
6 996

Number of gaming tables

South African operations
329

Other African operations
23

Latam operations
313

Alternative gaming in South Africa

LPM operations

6 000 machine licences with 3 333 machines

One online sports betting licence

Hotels and resorts/hospitality

The uniqueness of our properties and customer service skills of our people are our key differentiators to offering an unforgettable experience for our guests, which keeps them choosing Sun International as a destination of choice. Our hotel operations also service our casino guests, in particular those situated at our casino properties.

Number of hotel rooms			Number of properties
South African operations 3 117			South African operations 17
Other African operations 497			Other African operations 2
Latam operations 533			Latam operations 13

Stakeholder engagement with shareholders, investors, employees, unions, gambling boards, government regulators and communities to actively manage relations.

Governance and sustainability principles underpin our business model and provide the foundation on which we continue to build and grow our business.

Corporate social investment
to uplift socioeconomic development.

Outcomes

Through using our capital inputs and business activities, Sun International’s outcomes have a far reaching impact on the economy and society as a whole.

•	Supporting the local and international economies where we operate through the taxes paid and jobs created
•	Creating shareholder value through growth opportunities and increased market share
•	Providing entertainment opportunities for guests through our casinos and hotel resorts, while ensuring we support guests through our responsible gambling programme
•	Improving our guest experience through continuously maintaining and refurbishing our properties
•	Improving customer service by developing and upskilling our employees
•	Uplifting communities through targeted socioeconomic development initiatives including over R31 million raised in the CEO SleepOut
•	Supporting South Africa’s transformation goals
•	Supporting role players who protect the natural environments where we operate, such as game reserves and natural heritage organisations
•	Creating opportunities for enterprise development through our supply chain

Sun International strives to continuously create stakeholder value through conducting its business in an ethical manner that is guided by the board and executive management through its strategic objectives.

•	Improving our existing operations and guest experience
•	Protect and leverage our existing asset portfolio
•	Grow our business into new areas and products
•	Our people
•	Governance and sustainability

Outputs

Delivering a memorable guest experience that aligns with our vision of being an internationally recognised and respected gaming and hospitality group.

Business
model