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WIL: WILDERNESS HOLDINGS LIMITED - Audited Provisional Announcement of Summarised Consolidated Financial Results
29 May 2018

WIL: WILDERNESS HOLDINGS LIMITED - Audited Provisional Announcement of Summarised Consolidated Financial Results
Audited Provisional Announcement of Summarised Consolidated Financial Results

Wilderness Holdings Limited
 "Wilderness" or "the Company" or "the Group"
Share code: WIL ISIN: BW0000000868
Registration number: 2004/2986
BSE: Primary Listing
JSE: Secondary Listing
Tax reference number: C075372-01-01-7


AUDITED PROVISIONAL ANNOUNCEMENT OF SUMMARISED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018


SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                     Audited                        Audited
 P´000                                           28 Feb 2018       Change       28 Feb 2017
Revenue                                            1 208 912           9%         1 107 467
Cost of sales                                       (372 839)                      (353 447)
Gross profit                                         836 073                        754 020
Other gains                                              970                         16 182
Operating expenses                                  (599 871)           9%         (550 018)
Foreign exchange losses                              (30 777)                       (11 317)
Operating profit for the year before items
listed below (EBITDA)                                206 395           (1%)         208 867
Impairment loss                                       (9 566)                        (3 165)
Depreciation and amortisation                        (86 224)                       (76 927)
Operating profit                                     110 605          (14%)         128 775
Net finance costs                                    (19 169)                        (9 195)
Unrealised foreign exchange gains/(losses)
on loans                                              17 381                        (20 806)
Share of associate company profit                      6 067                          2 600
Profit before taxation                               114 884           13%          101 374
Taxation                                             (27 580)                       (38 623)
Profit for the year                                   87 304           39%           62 751
 Other comprehensive income/(loss)
Items that may be subsequently reclassified
to profit or loss
Exchange differences on translating foreign
operations:                                           7 723                         17 059
Equity holders of the Company                         9 807                         14 248
Non-controlling interest                                335                         (1 288)
Net investment in foreign operations                 (2 419)                         4 099
Total comprehensive income for the year              95 027                          79 810
Profit attributable to:
Owners of the Company                                76 658                          55 497
Non-controlling interest                             10 646                           7 254
                                                     87 304                          62 751

                                                         Audited                        Audited
P´000                                                28 Feb 2018      Change        28 Feb 2017
Total comprehensive income attributable
to:
Owners of the Company                                     84 046                         73 844
Non-controlling interest                                  10 981                          5 966
                                                          95 027                         79 810
Earnings per share (thebe)
Basic                                                      32.32          36%             23.74
Diluted                                                    32.03          36%             23.59

Founded in Botswana in 1983, Wilderness Holdings is an award-winning and globally respected
ecotourism company present in the prime wilderness and wildlife areas of southern and east
Africa. Pivoted off the continent´s most diverse portfolio of luxury safari camps, the Group
operates a vertically integrated business model that combines the ownership of product (safari
camps), support services (bush airline, and touring and transfer services), and marketing, sales
and reservations businesses. Collectively, these are termed "the travel experience" and serve
to ensure certainty of supply, ownership of the supply chain and a seamless service to both the
client (the travel trade) and the consumer (our guest).

Highlights
- Revenue up 9% to P1 209 million
- EBITDA down 1% to P206 million
- Adjusted EBITDA* up 11% to P222 million
- Total revenue per available room** up 2%
- Profit after tax up 39% to P87 million
- Cash generated by operations up 40% to P219 million
- Cash dividend unchanged at 16.5 thebe per share
- Occupancy rate up 1% to 59%

*  Adjusted EBITDA excludes the effects of the Governors´ acquisition and foreign exchange
   (losses)/gains.
** Total revenue per available room (TRevPar) is calculated as total revenue from Travel
   Experience divided by total available rooms.

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Additional disclosure:

                                                            Audited        Audited
P´000                                                   28 Feb 2018    28 Feb 2017
Reconciliation between profit attributable to owners
of the Company and headline earnings
Profit attributable to owners of the Company                 76 658         55 497
Adjustments
IAS 16 - Gains and compensation on disposal and
impairment of property,
plant and equipment                                            (873)        (6 128)
IAS 27 - Gains on disposal of subsidiaries                        -        (10 134)
IAS 36 - Impairment of assets                                 9 549          3 204
Tax effects of adjustments                                   (2 231)         2 841
Minority interest                                               (93)          (299)
Headline earnings                                            83 010         44 981
 Number of shares issued (thousands)
Issued                                                      237 437        236 859
Weighted average                                            237 203        233 781
Diluted weighted average                                    239 356        235 246
Headline earnings per share (thebe)
Basic                                                         35.00          19.24
Diluted                                                       34.68          19.12
Commitments
Capital
Authorised by directors and contracted for                   39 442        110 006
Not yet contracted for but authorised by directors           81 915        129 381
                                                            121 357        239 387
This expenditure will be incurred in the ensuing year
and will be financed from existing cash resources and
new borrowing facilities.
Operating leases
Minimum lease payments due
- within one year                                            23 914         16 929
- in second to fifth year inclusive                          70 592         39 557
- after fifth year                                          128 877         66 229
                                                            223 383        122 715
 Borrowings
Non-current
Interest bearing                                            354 413        157 661
Non-interest bearing                                         10 969         10 166
Less: Current portion of long-term liabilities              (39 743)        (7 210)
                                                            325 639        160 617
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                            Audited       Audited
P´000                                                   28 Feb 2018   28 Feb 2017
 Assets
Non-current assets                                          986 295       795 849
Property, plant and equipment                               734 927       571 121
Goodwill                                                     68 976        69 152
Intangible assets                                           114 205       119 694
Investments and loans in associates                          23 757        12 700
Loans receivable                                             18 710             -
Deferred tax assets                                          25 720        23 182
Current assets                                              538 077       428 919
Inventories                                                  32 089        31 952
Receivables and prepayments                                 150 425       140 968
Current tax receivable                                       34 918        23 818
Bank balances and cash                                      320 645       232 181
Total assets                                              1 524 372     1 224 768
 Equity and liabilities
Equity attributable to the owners of the company           553 665        507 985
Stated capital                                             168 634        167 291
Foreign currency translation reserve                        31 468         24 080
Common control reserve                                     (73 324)       (73 324)
Other non-distributable reserves                            19 318         19 318
Share-based payment reserve                                 (1 145)          (518)
Retained income                                            408 714        371 138
Non-controlling interest                                    38 268         28 586
Total equity                                               591 933        536 571
Non-current liabilities                                    394 138        226 759
Borrowings                                                 325 639        160 617
Deferred tax liabilities                                    68 499         66 142
Current liabilities                                        538 301        461 438
Trade and other payables                                   454 653        385 923
Current portion of borrowings                               39 743          7 210
Current tax liabilities                                      1 830          6 603
Bank overdrafts                                             42 075         61 702
Total liabilities                                          932 439        688 197
Total equity and liabilities                             1 524 372      1 224 768
Net asset value per share (thebe)                              233            214
Net tangible asset value per share (thebe)                     156            135
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                           Audited        Audited
P´000                                                  28 Feb 2018    28 Feb 2017
 Cash flow from operating activities
Cash generated from operations                             280 725        210 902
Net finance costs                                          (19 169)        (9 195)
Taxation paid                                              (42 633)       (45 839)
Net cash inflow from operating activities                  218 923        155 868
Cash flow from investing activities
Acquisition of subsidiary companies                              -        (71 705)
Additions to property, plant and equipment and
intangibles                                               (266 049)      (142 392)
Proceeds on disposal of property, plant and
equipment                                                    4 189          4 510
Acquisition of associate company                            (4 990)             -
Long-term loans receivable advanced                        (18 710)             -
Net cash outflow from investing activities                (285 560)      (209 587)
Cash flow from financing activities
Non-controlling interests´ share of dividends               (1 299)        (3 269)
Share-based payment - employee tax settlement                    -        (14 908)
Dividends paid                                             (39 082)       (34 782)
Repayment of long-term liabilities                          (7 260)       (58 037)
Long-term liabilities advanced                             233 828        138 857
Net cash inflow from financing activities                  186 187         27 861
Net increase/(decrease) in cash and cash equivalents       119 550        (25 858)
Unrealised exchange losses on foreign cash balances        (11 459)        (5 628)
Cash and cash equivalents at the beginning of the
year                                                       170 479        201 965
Cash and cash equivalents at the end of the year           278 570        170 479

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                             Audi         Audited
P´000                                                    28 Feb 2     28 Feb 2017
Opening balance                                              536 571      469 528
Share issue on settlement of share scheme                      1 343       11 205
Minority portion of dividend paid                             (1 299)      (3 269)
Dividends paid                                               (39 082)     (34 782)
Total comprehensive income for the year                       95 027       79 810
Net share-based payment reserve                                 (627)     (23 569)
Acquisition of a subsidiary                                        -       27 100
Disposal of a subsidiary                                           -       10 548
Closing balance                                              591 933      536 571

SEGMENTAL INFORMATION

                                                             Audited        Audited
P´000                                                    28 Feb 2018    28 Feb 2017
 Segmental profit
Botswana                                                     118 760        122 677
Kenya                                                          5 056          9 523
Namibia                                                       33 024         16 833
Rwanda                                                        15 263          6 914
South Africa                                                  34 129         39 173
Zambezi                                                       30 422          8 959
Intergroup                                                      (452)           (77)
Group                                                        236 202        204 002
 Depreciation and amortisation
Botswana                                                     (39 722)       (37 942)
Kenya                                                         (4 018)        (2 737)
Namibia                                                      (12 213)       (11 495)
Rwanda                                                        (4 211)          (397)
South Africa                                                  (7 896)        (6 408)
Zambezi                                                      (18 164)       (17 948)
Group                                                        (86 224)       (76 927)
 Transactions unallocated to a segment
Other gains                                                      970         16 182
Foreign exchange losses                                      (30 777)       (11 317)
Impairment losses                                             (9 566)        (3 165)
Interest paid                                                (23 202)       (11 096)
Interest received                                              4 033          1 901
Unrealised forex gains/(losses) - loans                       17 381        (20 806)
Associate earnings                                             6 067          2 600
Profit before taxation                                       114 884        101 374
Taxation                                                     (27 580)       (38 623)
Profit after tax                                              87 304         62 751

                                                                      Audited           Audited
P´000                                                             28 Feb 2018       28 Feb 2017
Segmental assets
Botswana                                                              871 711           705 077
Kenya                                                                  59 429            48 314
Namibia                                                               164 249           143 138
Rwanda                                                                 72 748            70 626
South Africa                                                          249 911           199 714
Zambezi                                                               115 856           122 019
Central financing activities and eliminations                          (9 532)          (64 120)
Group                                                               1 524 372         1 224 768



                                                                     Audited            Audited
P´000                                                            28 Feb 2018        28 Feb 2017
Revenue
Revenues by type of service
Travel experience                                                  1 071 835            990 273
Service fees                                                         109 366             87 645
Other                                                                 27 711             29 549
                                                                   1 208 912          1 107 467
Revenue by geographical regions
Botswana                                                             481 249            477 373
Kenya                                                                 92 394             73 021
Namibia                                                              196 877            176 559
Rwanda                                                                44 221             24 192
South Africa                                                         758 086            731 983
Zambezi                                                              193 111            162 432
Intergroup                                                          (557 026)          (538 093)
                                                                   1 208 912          1 107 467

                                                                           %                  %
Revenue by source market
Africa and the Middle East                                               35                  33
Americas                                                                 40                  40
Australasia                                                               2                   2
Europe and Asia                                                          23                  25
                                                                        100                 100

Commentary
Despite stronger local currencies and a discounted mobile Mombo Camp, the Group has
proven its adaptability and delivered a solid set of results with 9% growth in revenue and a 1%
decline in EBITDA. Adjusted EBITDA was up 11%, demonstrating the strength of the organic
business. The opening of Bisate Lodge in Rwanda exceeded all expectations, achieving 72%
occupancy rate from the official day of opening. The new Mombo Camp was completed
ahead of time and opened at the end of January to rave reviews. Following the change in
composition of the aircraft fleet in Namibia the air business achieved an exceptional turnaround
from an EBITDA loss of P12 million to a profit of P2 million.

Financial review
The Group increased bednights sold by 8% and recorded an increase in headline earnings per
share (HEPS) of 82%.

Governors´ Camp Collection acquisition
The comparative results for Governors´ include only eight months of trading following its
consolidation from 1 July 2016. This equates to a contribution of P117 million (2017: P95 million)
to revenue and P15 million (2017: P20 million) to EBITDA. Despite the volatile political environment
in Kenya following the annulled election and the subsequent follow-up elections the decline
was predominantly due to the inclusion of low season this year rather than the political unrest.
The Group is optimistic about future prospects in Kenya and Governors´ as a whole.

Financial performance
Revenue increased by 9% to P1 209 million (2017: P1 107 million) driven by the increase in
bednights sold. Overall bednight sales increased by 8% to 178 347 (2017: 165 864); excluding
Governors´, bednight sales grew by 4%. The Governors´ brand contributed 30 074 (2017: 22 946)
or 17% in bednight sales. Available bednights have increased by 6% to 304 698 (2017: 286 350);
excluding Governors´, available bednights decreased by 2%. The Group´s occupancy rate was
up slightly to 59% (2017: 58%).

The Pula gained more than 5% against the US Dollar over the year impacting negatively on
revenue, and this was also the cause of the large foreign exchange losses on conversion of the
Group´s foreign currency position.

EBITDA margin declined from 19% to 17%, primarily due to the higher foreign exchange losses as
well as lower `Other gains´. These gains primarily comprise insurance proceeds and net profit on
disposal of assets, and have declined from P16 million to P1 million in the current year. Operating
costs, on a like for like basis excluding Governors´, have remained well contained and increased
by less than 7% on prior year.

Impairment losses amounted to P9.6 million and relate to the impairment of decommissioned
camp assets and camp assets damaged by flooding.

Net finance costs were 108% higher at P19.2 million (2017: P9.2 million), being a consequence of
the inclusion of Governors´ and the increased debt to finance capital investment and
acquisitions.

The Group´s effective tax rate has decreased from 38% to 24%. This is largely due to the
recognition of P5 million of deferred tax asset in the Governors´ businesses following their strong
turnaround in performance and the decline in net foreign exchange losses. Excluding this, the
tax rate is still higher than the nominal tax rate due to the higher tax rates applicable in other
tax jurisdictions, losses incurred where deferred tax assets could not be recognised, as well as
unrealised foreign exchange losses which are generally not claimable for tax purposes.

Geographical operations
Namibia, Rwanda and Zambezi regions all recorded exceptional growth as they contributed on
a combined basis 33% (2017: 16%) of segmental profit and reflect 141% growth from P33 million
to P79 million. Strong demand in Namibia, together with the improvement in the air business,
contributed to the country´s growth while Bisate Lodge and the demand for Tour Series business
pushed up performance in Rwanda and Zambezi respectively. Botswana´s performance was
down 3% in segmental profit, a respectable result considering the impact of the Mombo rebuild
and the exchange rate. South Africa declined 13% due to the strength of the Rand. Kenya
recorded a decline of 47%, compared to the prior year, following the inclusion of a greater
portion of low season.

Financial position and cash flow
Capital expenditure and commitments
Excluding acquisitions, capital expenditure for the year amounted to P271 million.
Approximately P25 million was spent on new camp developments, P133 million on rebuilding
existing camps and P27 million on two additional aircraft. The balance of P86 million is defensive
or maintenance in nature. Capital expenditure is expected to taper off following the completion
of Mombo and Bisate, but in line with the Group´s philosophy to ensure our properties and assets
remain in pristine condition, the Group will continue to spend material amounts on maintenance
capital estimated at P100 million annually. The Board has approved P110 million in capital
expenditure for the next year, comprising P81 million defensive capital and P29 million for new
or strategic projects.

Shares in issue
During the year, the Company issued 578 500 ordinary shares of no par value (representing
approximately 0.2% of the enlarged number of shares in issue) for no consideration to settle the
share scheme obligations. At 28 February 2018, the number of ordinary shares in issue and the
weighted average number of shares was 237 437 353 (2017: 236 858 853) and 237 203 013 (2017:
233 781 074), respectively.

Bank and cash
Cash balances, less overdrafts, have increased by 63% to P279 million following utilisation of our
debt facilities with net drawdowns amounting to P227 million and cash generated from
operations amounting to P281 million. The multi-currency facility of USD34 million obtained in the
prior year has been fully utilised in the current year.

Loan advanced
As reported at half year, the Group continues to seek growth opportunities that promote
sustainable tourism land use. Accordingly, the Group participated in the development of a
camp in a new concession area and has advanced funds on loan account to a local investor.
The funds have been utilised, under supervision by the Group, to develop a world-class camp
which it supports through the provision of marketing and sales services. This transaction allows
the Group to take a more direct interest in the camp at an opportune time in the future, should
this be considered prudent for the Group and the local investor.

Dividend declaration - number 8
An interim dividend for the year ended 28 February 2018 of 16.5 thebe per share (15.2625 thebe
per share net of Botswana withholding tax) was declared on Saturday, 3 March 2018 and paid
on Tuesday, 3 April 2018. The dividend was declared out of income reserves. As the interim
dividend already paid represents 45% of profit after tax, being near the maximum of 50% of profit
after tax in terms of our stated policy, and following an assessment of future cash requirements,
the Board has decided to make no further dividend payments in respect of the financial year
ended 28 February 2018.

Related party transactions
There were no transactions with related parties that would be material to an understanding of
these results.

Subsequent events
On 23 April 2018 a subsidiary company was notified by the relevant tax authorities that it intends
to issue revised Value Added Tax assessments. The quantum of the potential liability is unknown
but management is of the view that its application and interpretation of the relevant rules and
regulations is correct and will dispute any claims that may arise. No other material events have
occurred between the reporting date and the date of this report.

Leases
The signed leases for a period of fifteen years for the concessions upon which Mombo, Little
Mombo and Xigera camps are located have been received. The Group expects to receive
imminently the lease for the concession upon which Vumbura Plains and Little Vumbura are
situated.

Basis of preparation
The summarised consolidated financial statements have been prepared in accordance with
the framework concepts and the measurement and recognition requirements of International
Financial Reporting Standards and the information as required by IAS 34 Interim Financial
Reporting. The report has been prepared using accounting policies that comply with
International Financial Reporting Standards, in a manner that is consistent with those applied in
the prior year consolidated financial statements.

Changes in accounting policies and comparability
The Group has adopted certain new standards, amendments and interpretations to existing
standards which are effective for the financial year beginning 1 March 2017. The adoption of
amendments to these standards has not had any material impact on previously reported figures.

The IFRIC issued IFRIC 22 Foreign Currency Transaction and Advance Consideration in
December 2016 clarifying the application of IAS 21 to advance consideration transactions. The
IFRIC is applicable for all financial periods commencing on or after 1 January 2018, however,
the Group has elected to early adopt the interpretation with effect from this current period. In
addition, the Group has elected to apply this IFRIC on a prospective basis and as such no
comparative information is restated as a result of the new requirements.

Independent auditor´s opinion
The auditor, Deloitte & Touche, has issued its unmodified audit opinion on the Group´s
consolidated financial statements for the year ended 28 February 2018. These summarised
consolidated financial statements have been derived from the audited Group consolidated
financial statements and are consistent in all material respects thereof. Copies of their audit
reports are available for inspection at the Company´s registered office. The audit was
conducted in accordance with International Standards on Auditing. Any reference to future
financial performance included in this announcement has not been reviewed or reported on
by the Group´s auditors.

Outlook
The rebuilt Mombo Camp, together with a politically stable Kenya and Zimbabwe, bode well
for the year ahead. Rwanda is also expected to increase its contribution both in occupancy
and revenue. The exchange rate volatility remains a risk and if the recent strength of the local
currencies continues, it will weigh down on performance. Ongoing rebuilding of Serra Cafema
and Chitabe Camps is expected to be completed during the year with various refurbishments
scheduled for camps in Zimbabwe and Kenya. Development of the new Magashi Camp in
Akagera National Park in Rwanda is planned to commence later in the year.

The Group´s strategic intent is to invest in African tourism markets which offer authentic wildlife
and safari experiences and where we feel our specific ecotourism model can have positive
conservation and community impacts.

Farewell Russel `Vulcha´ Friedman
On 4 February 2018, Wilderness lost one of its co-founders and a safari industry stalwart. Russel
was instrumental in the development of Wilderness and a true bastion of its cause. Our thoughts
and best wishes go out to Bonnie and Gabi. He will be sorely missed. RIP Russel.

By order of the Board
Keith Vincent
Chief Executive Officer

Ami Azoulay
Chief Financial Officer (Preparer)

29 May 2018

Wilderness Holdings Limited
Registered office (Botswana):
Deloitte House, Plot 64518, Fairgrounds, Gaborone, Botswana
External company registration number: 2009/022894/10

Registered office (South Africa):
373 Rivonia Boulevard, Rivonia, South Africa.
PO Box 5219, Rivonia 2128, South Africa

BSE Sponsor: Motswedi Securities (Pty) Ltd

JSE Sponsor:
Arbor Capital Sponsors Proprietary Limited

Transfer secretaries:
Corpserve Botswana - Computershare

Directors:
BBP Tafa# (Chairman), M Tollman* (Deputy Chairman), KNW Vincent (CEO),
A Azoulay (CFO), DA de la Harpe, JM Hunt*, RJ Marnitz*, MW McCulloch#,
GB Tollman#, MPK ter Haar*, C Vinsonneau#, J Zeitz*
#non-executive director *independent non-executive director

Group Company Secretary:
L Alexander

Wilderness Holdings Limited invites you to the Results presentation on Friday, 1st June 2018 at
10am at Deloitte House, Plot 64518, Fairgrounds Office Park. For further details please call Lu-
Anne Alexander on +26 7 392 6886.

www.wilderness-holdings.com

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