Tsogo Sun - Integrated Annual Report 2015

Our key relationships

We create value through our relationships with our stakeholders. Building trust, mutual respect and credibility with our stakeholders is vital to our long-term sustainability.

All interactions with our stakeholders are based on our values, included in the Human resources section, which guide our behaviour ensuring our stakeholders know what to expect from us. We have taken our stakeholders’ views into account in formulating our strategic priorities and report content.

An overview of our key stakeholder groups, their interests and concerns and how we engage with them is provided in the table below.

Stakeholder group	Why it is important for us to engage	How we engage with our stakeholders	Our stakeholders’ key interests	Impact on strategy

Investors and funding institutions	Investors and funding institutions are the providers of capital necessary for our growth and we need transparent communication and to understand potential concerns	JSE news services Media releases and published results Integrated annual reports and financial statements Annual General Meetings Dedicated analyst and investor presentations One-on-one meetings Tsogo Sun website	Sustainable growth and returns on investment Dividends Risks and opportunities of expansion Transparent executive remuneration Corporate governance and ethics Liquidity and gearing	Financial strength and durability Organic growth Inorganic growth

Government and regulatory bodies	Government provides us with our licence to trade and the enabling regulatory framework within which to operate and we need to ensure compliance and understand the broader economic, social and environmental issues	Establish constructive relationships Comment on developments in legislation Participate in forums Written responses in consultation processes Presentations and feedback sessions Regulatory surveillance, reporting and interaction Membership of industry bodies, e.g. CASA, Fedhasa, BLSA, etc.	Taxation revenues Compliance with legislation Compliance with licence conditions Job creation Investment in public and tourism infrastructure Investment in disadvantaged communities Advancing transformation Social impacts Reduction in energy and water consumption	Deliver to our beneficiaries Regulatory compliance Human resources

Customers	We need to understand our customers’ needs, perceptions and behaviours in order to deliver experiences relevant to them, thereby enhancing our brands and driving revenue	Satisfaction surveys Reward programmes Customer relationship managers Call centres Website and active Twitter and Facebook engagement One-on-one interaction	Quality product Consistent quality experience Simpler and quicker to deal with us Value offerings Long-term security of supply Recognition for loyalty	Product relevance to customer experience

Communities	Engagement assists us to focus our efforts in empowering local communities which contributes to our long-term viability	Events and sponsorships Media channels Corporate social investment initiatives National Responsible Gaming Programme	Investment in disadvantaged communities Employment opportunities Sponsorships Responsible gaming	Deliver to our beneficiaries

Employees and unions	Our employees are core to delivering our customer experiences and we need to understand their needs, challenges and aspirations and for them to be aligned with our strategy	Communication from executives Internal newsletters and posters Induction programmes Ongoing training and education Employee surveys Performance management programmes Anti-fraud, ethics and corruption hotline Trade union representative meetings Staff engagement programme ‘livingTsogo’	Job security Engagement Performance management Clear understanding of reward structures Health and safety performance Access to HIV counselling and wellness programmes Career planning and skills development Preferred employer	Human resources

Suppliers, tenants and business partners	Our suppliers, tenants and business partners enable us to deliver consistent customer experiences	One-on-one meetings Tender and procurement processes Anti-fraud, ethics and corruption hotline Supplier forums	Timely payment and favourable terms Fair treatment Broad-based black economic empowerment compliance	Deliver to our beneficiaries

In addition to providing exceptional experiences to our customers, the group generates direct and indirect ﬁnancial beneﬁts for our stakeholders including:

returns for our shareholders and funding institutions;
substantial income tax, dividends taxes, gaming levies and VAT, employees’ tax and property rates and taxes to national and provincial government;
corporate social investment within the communities we serve;
employment within the communities we serve;
sustainable business for our national and local business partners and suppliers which creates wealth and additional employment; and
continuous investment to maintain and expand our portfolio of properties.

A substantial portion of the value added wealth generated by the group is spent with/distributed to black economically empowered businesses, PDIs and government. The value added by the group and the contribution to black economically empowered businesses, PDIs and government is as follows:

Value added for the year ended 31 March 2015 (Rm)

Value added to black economically empowered businesses, PDIs and government for the year ended 2015 (Rm)

* As per the Department of Trade and Industry generic code
⁽¹⁾ Including the R100 million paid to the Kwazulu-Natal Gambling Board to be allocated to charitable or socio-economic infrastructure projects