DRIVING NEW FRONTIERS FOR SUSTAINABLE GROWTH

DRIVING NEW FRONTIERS FOR SUSTAINABLE GROWTH CONSOLIDATED

GENERAL INFORMATION Country of incorporation and domicile South Africa Company registration number 1993/004149/30 Directors S Macozoma (Chairman, effective 1 March 2015) R Morar 1 J Lamola 1 B Luthuli 1 C Mabude 1 K Moroka 1 D Botha 1 M Mabela 1 (appointed 1 March 2015) S Simelane 1 (appointed 1 March 2015) K Matlou 1 (appointed 1 March 2015) B Maseko 2 M Manyama 2 Registered office The Maples Riverwoods Office Park 24 Johnson Road Bedfordview 2008 Postal address PO Box 75480 Gardenview 2047 Bankers Auditors Secretary Standard Bank Nedbank Auditor-General South Africa N Kekana 1 Non-executive Director 2 Executive Director

AIRPORTS COMPANY SOUTH AFRICA 1 CONTENTS 2 3 4 5 10 12 14 15 16 18 20 REPORT OF THE BOARD AUDIT AND RISK COMMITTEE DIRECTORS RESPONSIBILITIES AND APPROVAL SECRETARY S CERTIFICATION REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS OF AIRPORTS COMPANY SOUTH AFRICA SOC LIMITED AND OTHER SHAREHOLDERS DIRECTORS REPORT DETAILED INDEX TO THE STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS NOTES TO THE

2 AIRPORTS COMPANY SOUTH AFRICA REPORT OF THE BOARD AUDIT AND RISK COMMITTEE The Board Audit and Risk Committee (Committee) of the Airports Company South Africa consists of five non-executive directors. The skills and competencies of the members are outlined on page 94 of the integrated report. The Committee operated under terms of reference which are approved by the Board. The Committee has carried out its duties as per the Companies Act and the Public Finance Management Act, including the special mandates that are assigned by the Board from time to time. The Committee reports that it has discharged its responsibilities as it relates to the following, namely review of: The Group s policies and procedures for detecting and preventing fraud. The effectiveness of the Group s policies, systems and procedures. The controls over significant financial and operational risks. Any other matters referred to it by the Board of Directors. The Group s compliance with significant legal and regulatory provisions. The significant reported cases of employee conflicts of interest, misconduct or fraud, or any other unethical activity by employees and or Group. The internal audit charter to ensure internal audit function discharges its responsibilities with independence and objectivity and in accordance with the International Standards for The Professional Practice of Internal Auditing (Standards). The effectiveness and adequacy of the Internal Audit department and adequacy of its annual work plan. Considered whether the independence, objectives, organisation, resourcing plans, financial budgets, audit plans and standing of internal audit function provide adequate support to enable the Committee to meet its objectives. The results of the work performed by the internal audit function in relation to financial reporting, corporate governance, risk areas, internal control, significant investigation and management response. The independence and objectivity of external auditors. The external auditor s findings and reports submitted to management. The accounting and auditing concerns identified by internal and external auditors. The adequacy, reliability and accuracy of financial information provided by management. The integrated report, annual consolidated financial statements, performance and prospects of the Group and recommendations for approval to the Board of Directors. The Committee is of the opinion that there are areas of internal financial controls that need improvement to ensure that the financial records may be relied upon in the preparation of the consolidated annual financial statements, and accountability for assets and liabilities is maintained. The conclusion has been reached based on the discussions and explanations obtained from management, external and internal auditors based on the results of their audits. The Committee obtained assurance from the external auditors that their independence was not impaired and confirmed that no reportable irregularities were identified and reported by the external auditors in terms of the Auditing Profession Act 26 of 2006. The Committee is satisfied that the accounting policies adopted in the preparation of the consolidated annual financial statements are appropriate. The Committee is of the view that the process followed on accounting judgement and estimates used in the preparation of the financial statements needs to be reviewed. The Committee reviewed the going concern of the Company and is satisfied that the adoption of the going concern premise in the preparation of the consolidated annual financial statements is appropriate. We therefore recommend that the consolidated annual financial statements, as submitted, be approved. On behalf of the Board Audit and Risk Committee, B LUTHULI Chairman 31 August 2016

AIRPORTS COMPANY SOUTH AFRICA 3 DIRECTORS RESPONSIBILITIES AND APPROVAL The directors are required in terms of the Companies Act No. 71 of 2008, Treasury Regulations and the Public Finance Management Act no.1 of 1999 as amended (PFMA), to maintain adequate accounting records, and are responsible for the content and integrity of the consolidated annual financial statements and related financial information included in this report. It is their responsibility to ensure that the consolidated annual financial statements fairly present the state of affairs of the Group as at the end of the financial period and the results of its operations and cash flows for the period then ended, in conformity with International Financial Reporting Standards (IFRS). The external auditors are engaged to express an independent opinion on the consolidated annual financial statements. The consolidated annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the Group and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the Board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring the Group s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the Group is on identifying, assessing, managing and monitoring all known forms of risk across the Group. While operating risk cannot be fully eliminated, the Group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The consolidated annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations, and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The external auditors are responsible for independently auditing and reporting on the Group s consolidated annual financial statements. The consolidated annual financial statements have been examined by the Group s external auditors and their report is presented on pages 5 to 9. The consolidated annual financial statements set out on pages 14 to 77, which have been prepared on the going concern basis, were approved by the Board of Directors on 31 August 2016 and were signed on its behalf by: S MACOZOMA R MORAR Chairman Deputy Chairman 31 August 2016 31 August 2016

4 AIRPORTS COMPANY SOUTH AFRICA SECRETARY S CERTIFICATION DECLARATION BY THE SECRETARY IN RESPECT OF SECTION 88(2) (E) OF THE COMPANIES ACT In terms of Section 88(2)(e) of the Companies Act, No.71 of 2008, as amended, I certify that the Group has lodged with the Companies and Intellectual Property Commission all such returns and notices as are required of a state-owned company in terms of the Companies Act and that all such returns and notices are true, correct and up to date. In terms of Section 8(1) of the Airports Company Act, No.44 of 1993, I certify that, for the financial year ended 31 March 2016, Airports Company South Africa SOC Limited has lodged, with the Minister of Transport, the consolidated annual financial statements in respect of the preceding financial year. N KEKANA Company Secretary 31 August 2016

AIRPORTS COMPANY SOUTH AFRICA 5 REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS OF AIRPORTS COMPANY SOUTH AFRICA SOC LIMITED AND OTHER SHAREHOLDERS REPORT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS Introduction 1. I have audited the consolidated and separate financial statements of the Airports Company South Africa SOC Limited (ACSA) and its subsidiaries set out on pages 14 77, which comprise the consolidated and separate statement of financial position as at 31 March 2016, the consolidated and separate statement of comprehensive income, statement of changes in equity, and cash flow statement for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting authority's responsibility for the consolidated and separate financial statements 2. The board of directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of these consolidated and separate financial statements in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Public Finance Management Act 1999 (Act No. 1 of 1999) (PFMA) and the Companies Act of South Africa, 2008 (Act No. 71 of 2008) (Companies Act), and for such internal control as the accounting authority determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. Auditor-general's responsibility 3. My responsibility is to express an opinion on these consolidated and separate financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated and separate financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated and separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated and separate financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 6. In my opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of the Airports Company South Africa SOC Limited and its subsidiaries as at 31 March 2016 and their financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards and the requirements of the Companies Act.

6 AIRPORTS COMPANY SOUTH AFRICA Report of the Auditor-General to Parliament on the Consolidated and Separate Financial Statements of Airports Company South Africa SOC Limited and other shareholders continued Emphasis of matter 7. I draw attention to the matters below. My opinion is not modified in respect of these matters; Restatement of corresponding figures 8. As disclosed in note G16 to the financial statements, the corresponding figures for 31 March 2015 have been restated as a result of an error discovered during 2016 in the financial statements of the Airports Company South Africa SOC Ltd. Material write-offs 9. As disclosed in note G16 to the financial statements, material write-offs to the amount of R72 million were incurred as a result of the asset verification project. Additional matters 10 I draw attention to the matters below. My opinion is not modified in respect of these matters; Unaudited supplementary information 11. As part of our audit of the financial statements for the year ended 31 March 2016, I have read the Directors' Report, the Audit Committee's Report and the Company Secretary's Certificate for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports I have not identified material inconsistencies between the reports and the audited financial statements. I have not audited the reports and accordingly do not express an opinion on them. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 12 In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice issued in terms thereof, I have a responsibility to report findings on the reported performance information against predetermined objectives of selected objectives presented in the annual performance report, compliance with legislation and internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters. Predetermined objectives 13 I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information of the following selected objectives presented in the annual performance report of the schedule 2 public entity for the year ended 31 March 2016: Objective 1: Deliver long term profitability, on page 46 of the Integrated report Objective 2: Control funding and cost of borrowing, on page 46 of the Integrated report Objective 3: Entrench and deepen partner relationships, on page 46 of the Integrated report Objective 4: Deliver exceptional passenger, on page 46 of the Integrated report Objective 5: Enhance returns (Identify and secure new business), on page 46 of the Integrated report Objective 6: Continually re-engineer and align business operations processes, on page 48 of the Integrated report Objective 7: Leverage IT for competitive advantage, on page 48 of the Integrated report Objective 11: Environmental responsibility, on page 46 of the Integrated report 14. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury's annual reporting principles and whether the reported performance was consistent with the planned objectives. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury's Framework for managing programme performance information (FMPPI). 15. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 16. I did not identify any material findings on the usefulness and reliability of the reported performance information for the selected objectives.

AIRPORTS COMPANY SOUTH AFRICA 7 Additional matter 17. Although I identified no material findings on the usefulness and reliability of the reported performance information for the selected objectives, I draw attention to the following matter. Adjustment of material misstatements 18. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of Enhance returns (Identify and secure new business). As management subsequently corrected the misstatements, I did not identify any material findings on the usefulness and reliability of the reported performance information. Unaudited supplementary information/schedules. 19. The supplementary information set out on pages 144 to 146 does not part of the Integrated report and is presented as additional information. We have not audited these schedules and, accordingly, we do not express a conclusion on them. Compliance with legislation 20. I performed procedures to obtain evidence that the schedule 2 public entity had complied with applicable legislation regarding financial matters, financial management and other related matters. My material findings on compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows: Annual Financial statements, performance and annual reports 21. The financial statements submitted for auditing were not prepared in accordance with the International Financial Reporting Standards (IFRS) and supported by full and proper records as required by section 55(1) (b) of the Public Finance Management Act and section 29(1)(a) of the Companies Act. Material misstatements of non-current assets, current assets, liabilities, and expenditure and disclosure items identified by the auditors in the submitted financial statements were subsequently corrected and the supporting records were provided subsequently, resulting in the financial statement receiving an unqualified audit opinion. Procurement and Contract Management 22. Certain goods, works or services were not procured through a procurement process which is fair, equitable, transparent and competitive as required by the PFMA section 51(1)(a)(iii). 23. The procurement system/processes did not comply with the requirements of a fair SCM system as per section 51(1)(a)(iii) of the PFMA, in that: Some contracts were extended or modified to the extent that competitive bidding processes were not pursued. Awards were not always made to suppliers based on criteria that are consistent with the original invitations for bids. Some awards were made to suppliers that did not score the highest points in the evaluation process as per the requirements of the SCM policy. 24. Some construction contracts were awarded to contractors that did not qualify for the contract in accordance with section 18(1) of the CIDB Act and CIDB regulations 17 and 25(7A). Expenditure Management 25. Steps taken were not effective as they could not prevent irregular expenditure and fruitless and wasteful expenditure as required by section 51(1)(b)(iii) of the Public Finance Management Act. This is due to the fact that there was a re-occurrence of PFMA non-compliance that resulted in irregular expenditure and fruitless and wasteful expenditure similar to prior years. Liability Management 26. Credit cards, not used for permitted purposes, as set out in Treasury regulation 31.2.7, were obtained, in contravention of Treasury Regulation 31.2.5.

8 AIRPORTS COMPANY SOUTH AFRICA Report of the Auditor-General to Parliament on the Consolidated and Separate Financial Statements of Airports Company South Africa SOC Limited and other shareholders continued Consequence Management 27. Disciplinary steps were not taken against officials who permitted irregular expenditure and fruitless and wasteful expenditure, as required by section 51(1)(e)(iii) of the PFMA. Strategic planning and performance management 28. A corporate plan was not submitted in the prescribed format to the national treasury and the accounting officer of the Department of Transport as required by section 52(b) of the PFMA and Treasury Regulation 29.2 as the ACSA group corporate plan did not take into account the affairs of its Subsidiaries. Subsequently a revised corporate plan for 2017-19 which incorporated the affairs of the subsidiaries was submitted and approved by the Minister. Maintenance of company records 29. The entity did not keep or maintain company records and other related information supporting the company financial statements, as required by section 24(1) of the Companies Act 71 of 2008. Minister's approval for incorporation of entities 30. The entity did not obtain the ministers approval for the incorporation of some of its controlled entities and where significant interest is held. These exclude entities or significant interest acquired on or before 01 April 2000, commencement date for the PFMA Act. Internal control 31. I considered internal control relevant to my audit of the financial statements, performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted the material adjustments on the financial statements, and the findings on compliance with legislation included in this report. Leadership 32. The accounting authority did not exercise adequate oversight responsibility over senior management to ensure compliance with the relevant requirements of the IFRS, Companies Act and PFMA. 33. There was a slow response by management in addressing internal control weaknesses as there were repeat findings in the current year.

AIRPORTS COMPANY SOUTH AFRICA 9 Financial and performance management 34. Management did not adequately review the financial statements to ensure the accuracy of amounts disclosed, as well as full compliance with the reporting requirements of the applicable financial reporting framework. 35. Proper record keeping was not always implemented in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting. 36. The review and monitoring of compliance with applicable laws and regulations were ineffective. Other reports 37. I draw attention to the following engagements that could potentially impact on the public entity's financial, performance and compliance related matters. My opinion is not modified in respect of these engagements that are either in progress or have been completed. Investigations 38. The accounting authority has commissioned an independent investigation on alleged irregularities in procurement and contract management processes. As at the date of this report, the outcome of this investigation was still pending. Pretoria 5 September 2016

10 AIRPORTS COMPANY SOUTH AFRICA DIRECTORS REPORT GENERAL INFORMATION The directors have pleasure in submitting their report on the consolidated annual financial statements of Airports Company South Africa SOC Limited for the year ended 31 March 2016, published on 23 September 2016. The Company was established in terms of the Airports Company Act, No.44 of 1993 as amended. NATURE OF BUSINESS The principal activities of the Company are the acquisition, establishment, development, provision, maintenance, management, control and operation of airports or part of any airport or any facilities or services that are normally performed at an airport. During the month of October 2015 Airports Company South Africa concluded the transaction of R363 million to acquire an additional 10% shareholding in Grupar. This brings the total investment to 20%. There have been no material changes to the nature of the Group s business from prior periods. REVIEW OF OPERATIONS Revenue for the Group amounted to R8.3 billion (March 2015: R7.8 billion), including non-aeronautical revenue of R3.1 billion (March 2015: R2.8 billion). Profit before income tax for the Group amounted to R2.7 billion (March 2015: R2.3 billion). The profit for the year for the Group was R2 billion (March 2015: R1.6 billion) after taxation expense of R789 million (March 2015: R728 million). DIVIDENDS The Board of Directors has approved but not yet paid an ordinary dividend of R343 million for the 2016 financial period (March 2015: ordinary dividend R274 million). CAPITAL EXPENDITURE During the current year, R1.3 billion (March 2015: R830 million) was spent on capital expenditure relating to improvements, expansions and replacements by the Group. (Refer to notes B1, B2 and G1 for more details). SHARE CAPITAL There were no changes to the authorised and issued share capital of the Company and the Group during the financial period. GOING CONCERN The consolidated annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES Airports Company South Africa SOC Ltd is the ultimate parent of the Group. The Group has a 100% interest in Airports Company South Africa Global Ltd, a management company incorporated in Mauritius. Airports Company South Africa Global Ltd is registered in Mauritius with a financial year end of 31 March. The investment has been accounted for as a subsidiary. Airports Company South Africa Global Ltd holds a 10% interest in the Mumbai International Airport concession (MIAL). The investment has been accounted for as an associate. Airports Company South Africa SOC Ltd holds a 100% interest in JIA Piazza Park (Pty) Ltd with a financial year-end of 31 March. The investment has been accounted for as a subsidiary. Airports Company South Africa SOC Ltd holds a 100% interest in Precinct 2A (Pty) Ltd with a financial year-end of 31 March. The investment has been accounted for as a subsidiary. The Group has a 50% interest in Airport Logistics Property Holdings (Pty) Ltd with a financial year end of 30 June, which is a joint venture between the Company and The Bidvest Group Ltd. The investment has been accounted for as a joint venture using the equity method of accounting. Airports Company South Africa SOC Ltd has a 40% interest in the La Mercy JV Property Investments (Pty) Ltd with a financial year end of 31 March, a property holding, development and letting company. The investment has been accounted for as an associate using the equity method of accounting Airports Company South Africa SOC Ltd holds a 20% interest in Aeroporto de Guarulhos Participações S.A. Aeroporto de Guarulhos Participações S.A. is registered in Brazil with a financial year-end of 31 December. The investment has been accounted for as an associate using the equity method of accounting. Airports Company South Africa SOC Ltd holds 100% of Sakhisizwe Community Programme NPC which is a special purpose entity (SPE) created and controlled by Airports Company South Africa from a government grant received from the Department of Transport. Details of the assets, liabilities, revenues and expenses of the subsidiaries, joint ventures and associates that are included in the consolidated statement of comprehensive income and the consolidated statement of financial position are set out in notes E1, E2 and E3 of the consolidated annual financial statements.

AIRPORTS COMPANY SOUTH AFRICA 11 DIRECTORS AND SECRETARY Details of the Directors and Secretary of the Company are given on the inside front cover of this report. INTERESTS OF DIRECTORS AND OFFICERS No contracts were entered into in which directors and officers of the Company had an interest and which affect the business of the Group. The directors had no interest in any third party or company responsible for managing any of the business activities of the Group. The emoluments of directors are determined by the Board Remuneration Committee. (Directors emoluments can be found in note G11). INFORMATION REQUIRED IN TERMS OF THE PUBLIC FINANCE MANAGEMENT ACT In terms of the materiality framework agreed with the shareholder and as per S55(2)(b)(i) and (ii) of the PFMA, any losses due to criminal conduct or irregular or fruitless and wasteful expenditure that individually (or collectively where items are closely related) exceed R60 million for the Group, must be disclosed separately, including any criminal or disciplinary steps taken as a consequence of such losses or irregular or fruitless and wasteful expenditure. Fruitless and wasteful expenditure amounted to R6 million (March 2015: R13 million) the March 2015 figure was restated. The fruitless and wasteful expenditure relates to: 1) Losses in relation to cancelled tenders; 2) Interest on provisional payment; and 3) Financial misconduct. Cumulative irregular expenditure is R446 million (March 2015: R312 million). The irregular expenditure incidents relate to contravention of the supply chain management policy and the Preferential Procurement Policy Framework Act (PPPFA) and regulations. Management has controls in place to monitor and report on this type of expenditure on a regular basis. This information is considered and presented to the Executive Committee (EXCO) and the Audit and Risk Committee for review on a quarterly basis. Irregular expenditure of R312 million has been sent to National Treasury for consideration of condonement.

12 AIRPORTS COMPANY SOUTH AFRICA DETAILED INDEX TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS Statement of financial position 14 Statement of comprehensive income 15 Statement of changes in equity 16 Statement of cash flows 18 Notes to the consolidated annual financial statements 20 1. Basis of preparation and accounting policies 20 2. New Standards and Interpretations 20 3. Segmental information 23 A. Managing EBITDA 27 A.1 Revenue 27 A.2 Other income 28 A.3 Employee costs 29 A.4 Other operating expenses 30 B. Assets 31 B.1 Investment property 31 B.2 Property and equipment 32 C. Debt and cash management 40 C.1 Interest-bearing borrowings 40 C.2 Finance income and expenses 45 C.3 Derivative financial instruments and hedging information 46 F. Financial instruments and financial risk management 56 F.1 Financial instruments 56 F.2 Financial risk management 59 G. Other 63 G.1 Intangible assets 63 G.2 Deferred tax liability 63 G.3 Retirement benefits 65 G.4 Investments 66 G.5 Share capital 67 G.6 Other reserves 67 G.7 Deferred income 68 G.8 Provisions 68 G.9 Taxation 69 G.10 Earnings per share and dividend per share 70 G.11 Related parties 71 G.12 Events after the reporting period 73 G.13 Irregular expenditure 73 G.14 Fruitless and wasteful expenditure 73 G.15 Contingencies 74 G.16 Prior period error 75 D. Managing working capital 47 D.1 Trade and other receivables 47 D.2 Cash and cash equivalents 48 D.3 Trade and other payables 48 D.4 Cash generated from operations 49 D.5 Tax paid 49 D.6 Other non-current assets 49 E. Investments 50 E.1 Subsidiaries 50 E.2 Joint arrangements 51 E.3 Investments in associates 52 E.4 Commitments 54

AIRPORTS COMPANY SOUTH AFRICA 13

14 AIRPORTS COMPANY SOUTH AFRICA STATEMENT OF FINANCIAL POSITION As at 31 March 2016 Figures in Rand thousand Note Mar 2016 Restated Mar 2015 Restated Mar 2014 Mar 2016 COMPANY Restated Mar 2015 Restated Mar 2014 ASSETS Non-current assets Property and equipment B.2 19 512 477 19 589 848 20 150 814 19 464 737 19 552 661 20 115 244 Investment property B.1 4 881 537 4 336 073 3 865 021 4 519 069 4 013 925 3 512 277 Intangible assets G.1 34 039 55 511 110 608 33 808 55 511 110 608 Investments in subsidiaries E.1 794 028 785 586 790 006 Investments in joint ventures E.2 147 734 127 942 107 383 Investments in associates E.3 1 761 660 1 348 026 1 422 739 658 632 296 056 293 327 Other non-current assets D.6 330 613 95 021 177 886 330 613 95 021 177 886 26 668 060 25 552 421 25 834 451 25 800 887 24 798 760 24 999 348 Current assets Inventories 1 459 1 391 1 180 352 Derivative financial instruments C.3 701 701 Current tax receivable 60 824 4 980 461 56 263 Trade and other receivables D.1 1 014 864 1 183 312 943 188 999 237 1 172 113 935 034 Investments G.4 760 100 515 899 1 073 569 760 100 515 899 1 073 569 Cash and cash equivalents D.2 1 369 568 1 226 566 1 014 508 1 356 400 1 198 914 973 461 3 206 815 2 932 849 3 032 906 3 172 352 2 887 627 2 982 064 Total assets 29 874 875 28 485 270 28 867 357 28 973 239 27 686 387 27 981 412 EQUITY AND LIABILITIES Equity Share capital ordinary G.5 500 000 500 000 500 000 500 000 500 000 500 000 Share premium G.5 250 000 250 000 250 000 250 000 250 000 250 000 Treasury share reserve (44 024) (44 024) (44 024) Other reserves G.6 703 989 67 887 (77 467) 191 958 163 709 119 831 Retained income 15 723 964 14 036 403 12 705 076 15 512 409 13 296 017 11 776 495 17 133 929 14 810 266 13 333 585 16 454 367 14 209 726 12 646 326 Liabilities Non-current liabilities Derivative financial instruments C.3 3 766 50 719 48 081 3 766 50 719 48 081 Retirement benefit obligation G.3 27 647 30 831 34 858 27 647 30 831 34 858 Deferred income G.7 64 467 62 859 69 614 64 467 62 859 69 614 Deferred tax liability G.2 1 346 013 1 365 207 1 349 374 1 147 244 1 187 735 1 172 095 Interest-bearing borrowings C.1 7 914 261 10 036 846 11 137 545 7 914 261 10 036 846 11 137 545 9 356 154 11 546 462 12 639 472 9 157 385 11 368 990 12 462 193 Current liabilities Derivative financial instruments C.3 2 604 24 304 51 601 2 604 24 304 51 601 Current tax payable 61 999 68 644 61 999 67 938 Trade and other payables D.3 1 276 534 724 241 752 284 1 254 729 704 870 733 083 Deferred income G.7 3 613 3 339 2 731 3 613 3 339 2 731 Provisions G.8 198 786 174 955 172 531 198 786 174 955 172 531 Interest-bearing borrowings C.1 1 903 255 1 139 704 1 846 509 1 901 755 1 138 204 1 845 009 3 384 792 2 128 542 2 894 300 3 361 487 2 107 671 2 872 893 Total liabilities 12 740 946 13 675 004 15 533 772 12 518 872 13 476 661 15 335 086 Total equity and liabilities 29 874 875 28 485 270 28 867 357 28 973 239 27 686 387 27 981 412

AIRPORTS COMPANY SOUTH AFRICA 15 STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2016 Figures in Rand thousand Note Mar 2016 Restated Mar 2015 Mar 2016 COMPANY Restated Mar 2015 Revenue A.1 8 305 765 7 773 936 8 146 952 7 624 720 Other income A.2 66 769 4 704 66 728 14 590 Employee costs A.3 (1 185 791) (1 070 210) (1 156 328) (1 045 721) Operating expenses A.4 (2 009 638) (1 872 315) (1 952 856) (1 809 759) Earnings before interest, tax, depreciation and amortisation 5 177 105 4 836 115 5 104 496 4 783 830 Fair value gains on investment properties B.1 328 454 414 243 288 134 444 840 Depreciation, amortisation and impairments B.2 & G.1 (1 163 099) (1 476 962) (1 158 359) (1 472 223) Loss from equity accounted investments E.2 & E.3 (690 435) (155 446) Finance income C.2 129 281 87 098 185 807 141 352 Finance costs C.2 (1 093 358) (1 314 425) (1 093 210) (1 314 425) Gains/(losses) on remeasurement and disposal of financial instruments C.2 59 623 (126 043) 59 623 (126 043) Gains on property and equipment* 91 357 91 357 Profit before taxation 2 747 571 2 355 937 3 386 491 2 548 688 Taxation G.9 (789 128) (728 187) (895 948) (729 166) Profit for the year 1 958 443 1 627 750 2 490 543 1 819 522 Other comprehensive income Items that will not be reclassified to profit or loss: Actuarial gains 3 930 1 453 3 930 1 453 Income tax relating to items that will not be reclassified (340) (407) (340) (407) Total items that will not be reclassified to profit or loss 3 590 1 046 3 590 1 046 Items that may be reclassified to profit or loss Exchange differences on translating foreign operations 771 491 130 583 Effects of cash flow hedges 33 952 59 490 33 952 59 490 Income tax relating to items that may be reclassified (172 931) (45 763) (9 293) (16 658) Total items that may be reclassified to profit or loss 632 512 144 310 24 659 42 832 Other comprehensive income for the year net of taxation 636 102 145 356 28 249 43 878 Total comprehensive income for the year 2 594 545 1 773 106 2 518 792 1 863 400 Earnings per share Per share information Basic earnings per share (cents) G.10 396.42 329.48 498.11 363.90 Diluted earnings per share (cents) G.10 396.42 329.48 498.11 363.90 * Gains on property and equipment resulted from the physical asset verification adjustments, refer to note G16.

16 AIRPORTS COMPANY SOUTH AFRICA STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2016 Figures in Rand thousand Share capital Share premium Treasure share reserve Other reserves Retained income Total equity Balance at 1 April 2014 previously reported 500 000 250 000 (44 024) (77 467) 11 951 507 12 580 016 Adjustments prior period error 753 569 753 569 Balance at 1 April 2014 restated 500 000 250 000 (44 024) (77 467) 12 705 076 13 333 585 Profit for the year 1 627 750 1 627 750 Other comprehensive income: Actuarial gains on defined benefit post-retirement medical aid liability, net of tax 1 046 1 046 Foreign currency translation differences, net of tax 101 476 101 476 Cash flow hedge reserve on derivative financial instruments, net of tax 42 832 42 832 Dividends declared (296 423) (296 423) Balance at 1 April 2015 restated 500 000 250 000 (44 024) 67 887 14 036 403 14 810 266 Profit for the year 1 958 443 1 958 443 Other comprehensive income: Actuarial gains on defined benefit post-retirement medical aid liability, net of tax 3 590 3 590 Foreign currency translation differences, net of tax 607 853 607 853 Cash flow hedge reserve on derivative financial instruments, net of tax 24 659 24 659 Dividends declared (270 882) (270 882) Total other comprehensive income 636 102 (270 882) 365 220 Balance at 31 March 2016 500 000 250 000 (44 024) 703 989 15 723 964 17 133 929 Note G.5 G.5 G.6

AIRPORTS COMPANY SOUTH AFRICA 17 COMPANY Figures in Rand thousand Share capital Share premium Other reserves Retained income Total equity Balance at 1 April 2014 previously reported 500 000 250 000 119 831 11 022 535 11 892 366 Adjustments prior period error 753 960 753 960 Balance at 1 April 2014 restated 500 000 250 000 119 831 11 776 495 12 646 326 Profit for the year 1 819 522 1 819 522 Other comprehensive income: Actuarial losses on defined benefit post-retirement medical aid liability, net of tax 1 046 1 046 Gain on revaluation of investment property, net of tax Cash flow hedge reserve on derivative financial instruments, net of tax 42 832 42 832 Dividends declared (300 000) (300 000) Balance at 1 April 2015 restated 500 000 250 000 163 709 13 296 017 14 209 726 Profit for the year 2 490 543 2 490 543 Other comprehensive income: Actuarial losses on defined benefit post-retirement medical aid liability, net of tax 3 590 3 590 Cash flow hedge reserve on derivative financial instruments, net of tax 24 659 24 659 Dividends declared (274 151) (274 151) Total other comprehensive income 28 249 (274 151) (245 902) Balance at 31 March 2016 500 000 250 000 191 958 15 512 409 16 454 367 Note G.5 G.5 G.6

18 AIRPORTS COMPANY SOUTH AFRICA STATEMENT OF CASH FLOWS For the year ended 31 March 2016 COMPANY Figures in Rand thousand Note Mar 2016 Mar 2015 Mar 2016 Mar 2015 Cash flows from operating activities Cash receipts from customers 8 540 982 7 538 516 8 386 556 7 402 231 Cash paid to suppliers and employees (2 962 950) (2 951 618) (2 854 707) (2 873 813) Cash generated from operations D.4 5 578 032 4 586 898 5 531 849 4 528 418 Interest income C.2 129 281 87 098 185 807 141 352 Tax paid D.5 (1 065 471) (743 235) (1 063 358) (736 527) Net cash inflow from operating activities 4 641 842 3 930 761 4 654 298 3 933 243 Cash flows from investing activities Purchase of property and equipment (1 161 657) (762 575) (1 145 626) (756 045) Sale of property and equipment 3 709 9 011 3 762 8 976 Purchase of investment property B.1 (49 094) (49 094) Purchase of other intangible assets G.1 (2 566) (18 564) (2 262) (18 564) Loans to Group companies (advanced)/repaid 2 647 (2 729) (8 442) 1 691 (Increase)/decrease in short-term investments (244 201) 557 670 (244 201) 557 670 Increase in investments in associates E.3 (362 576) (362 576) Net cash outflow from investing activities (1 764 644) (266 281) (1 759 345) (255 366) Cash flows from financing activities Interest-bearing borrowings repaid (1 458 067) (1 948 809) (1 458 067) (1 948 809) Financial instruments held for trading (44 611) (140 355) (44 613) (140 357) Dividends paid (270 882) (296 819) (274 151) (296 819) Interest paid (960 636) (1 066 439) (960 636) (1 066 439) Net cash outflow from financing activities (2 734 196) (3 452 422) (2 737 467) (3 452 424) Increase in cash and cash equivalents 143 002 212 058 157 486 225 453 Cash and cash equivalents at the beginning of the year 1 226 566 1 014 508 1 198 914 973 461 Cash and cash equivalents at the end of the year D.2 1 369 568 1 226 566 1 356 400 1 198 914

AIRPORTS COMPANY SOUTH AFRICA 19

20 AIRPORTS COMPANY SOUTH AFRICA NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS For the year ended 31 March 2016 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES 1.1 Statement of compliance and basis of preparation The consolidated and separate annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations issued by the International Accounting Standards Board (IASB), as well as the requirements of the South African Companies Act of 2008 and the Public Finance Management Act 1 of 1999, as amended. The financial statements have been prepared on the historical-cost basis, except for investment property and certain financial instruments that are carried at fair value. 1.2 Basis of consolidation The Group controls and consolidates an entity where the Group has power over the entity s relevant activities; is exposed to variable returns from its involvement with the investee; and has the ability to affect the returns through its power over the entity, including structured entities. Determining whether the Group controls another entity requires judgement by identifying an entity s relevant activities, being those activities that significantly affect the investee s returns, and whether the Group controls those relevant activities by considering the rights attached to both current and potential voting rights, de facto control and other contractual rights, including whether such rights are substantive. 1.3 Estimates and assumptions In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. The significant judgements have been disclosed in the applicable notes. These include: Accounting for investment in associate note E.3 Fair value of financial instruments note F.1 Post-retirement medical aid obligation note G.3 Fair value of investment property note B.1 Useful lives and residual values of assets note B.2 Contingencies note G.15 Property and equipment note B.2 Current and deferred tax note G.9 and G.2 Prior period error Note G.16 1.4 Changes in accounting policy and disclosures The accounting policies are consistent with those adopted in the prior period and the accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by Group entities. 1.5 Functional and presentation currency These financial statements are presented in South African Rand, which is the Company s functional currency. All financial information presented in Rand has been rounded to the nearest thousand unless otherwise indicated. 1.6 Comparative figures Comparative figures are restated in the event of a change in accounting policy, prior period error or reclassification. 2. NEW STANDARDS AND INTERPRETATIONS 2.1 Standards and interpretations effective and adopted in the current period There were a number of new standards and interpretations effective and adopted in the current period; none of these are considered to have a material impact on the Group. 2.2 Standards and interpretations not yet effective There are a number of new standards and amendments which will only be effective after the 2016 year-end. None of these are expected to have a significant impact on the Group, except for IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments.

AIRPORTS COMPANY SOUTH AFRICA 21 2. NEW STANDARDS AND INTERPRETATIONS (CONTINUED) 2.2 Standards and interpretations not yet effective (continued) Topic Key requirements Effective date IFRS 15 Revenue from Contracts with Customers This is the converged standards on revenue recognition. It replaces IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations. Revenue is recognised when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. 1 January 2018 IFRS 9 Financial Instruments The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation IFRS 15 also includes a cohesive set of disclosure requirements that will result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity s contracts with customers. Management is currently in the process of assessing the impact of this new standard. The complete version of IFRS 9 replaces most of the guidance in IAS 39. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through OCI and fair value through P&L. The basis of classification depends on the entity s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in OCI. There is now a new expected credit losses model that replaces the incurred loss impairment model used in IAS 39. For financial liabilities there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value, through profit or loss. Management is currently in the process of assessing the impact of this new standard. 1 January 2018

22 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 2. NEW STANDARDS AND INTERPRETATIONS (CONTINUED) 2.2 Standards and interpretations not yet effective (continued) Topic Key requirements Effective date IFRS 10 Consolidated Financial Statements Amendments regarding the application of the consolidation exception. Outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities they control. Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee. 1 January 2016 IFRS 11 Joint Arrangements IAS 1 Presentation of Financial Statements IAS 12 Income Taxes IAS 16 Property, Plant and Equipment IAS 19 Employee Benefits IAS 27 Separate Financial Statements (as amended in 2011) IAS 28 Investment in Associates IAS 38 Intangible Assets Amendments regarding the accounting for acquisitions of an interest in 1 January 2016 a joint operation. Amendments resulting from the disclosure initiative 1 January 2016 Amendments regarding the recognition of deferred tax assets for 1 January 2017 unrealised losses. Amendments regarding the clarification of acceptable methods of 1 January 2016 depreciation and amortisation. Amendments resulting from September 2014 Annual Improvements to IFRS. 1 January 2016 Amendments reinstating the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity s separate financial statements. The amendments clarify the application of the consolidation exception for investment entities and their subsidiaries. Amendments regarding the clarification of acceptable methods of depreciation and amortisation. 1 January 2016 1 January 2016 1 January 2016 2.3 Accounting policies The most significant accounting policies have been moved next to the relevant notes in the consolidated annual financial statements. The remainder of the accounting policies not relating to a specific note is dealt with here. All accounting policies are consistent with the previous period. 2.4 Foreign currency 2.4.1 Foreign operations The assets and liabilities of foreign operations, including fair value adjustments arising on acquisition, are translated to South African Rand at closing rate. The income and expenses of foreign operations are translated at the dates of the transactions using an average rate. Differences arising upon the translation of the foreign operation into South African Rand are recognised directly in other comprehensive income and is recognised in the statement of changes in equity as part of the foreign currency translation reserve account. 2.4.2 Foreign currency transactions and balances Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities are retranslated at year-end at the closing rate (exchange rate at year-end). Non-monetary assets and liabilities are measured at historical cost and are not retranslated at year-end, while non-monetary assets and liabilities measured at fair value are retranslated at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on translation are recognised in profit and loss. Refer to note F.2. (price risk) for the significant exchange rates that applied throughout the period. 2.5 Impairment of non-financial assets The carrying amounts of property and equipment, and intangible assets are reviewed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the asset s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Assets are grouped together into the smallest groups of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit ). An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount.

AIRPORTS COMPANY SOUTH AFRICA 23 3. SEGMENTAL INFORMATION The Group s reported segments are based on reports reviewed by the Executive Committee (EXCO) to make strategic decisions. Five reportable segments were identified namely: O.R. Tambo International Cape Town International King Shaka International Regional Airports Corporate and Other 1 The Regional Airports segment comprises the smaller airports in South Africa which the Group manages, namely: Bram Fischer International Airport East London Airport Port Elizabeth International Airport George Airport Kimberley Airport Upington International Airport 1 Other comprises the results of the subsidiaries, joint ventures and associates outlined in the directors report on pages 10 to 11 of these consolidated annual financial statements. Information regarding the operations of each reportable segment is included below. EXCO assesses the performance of the operating segments as a measure of earnings before interest, taxation, depreciation and amortisation expense (EBITDA), The Group calculates EBITDA as follows: Profit/(loss) before tax Add Interest expense. Less Interest income. Add Depreciation, amortisation and any impairment. Add Loss from equity accounted investments. Items not allocated to segments Current and deferred tax liabilities, derivative financial instruments and interest-bearing liabilities have not been allocated to operating segments as these are managed centrally. Similarly, interest income and expenditure are not allocated to operating segments as they are driven largely by the Corporate division, which manages the cash requirements of the Company. Corporate overhead expenses are not allocated to the reportable segments.

24 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 3. SEGMENTAL INFORMATION (CONTINUED) O.R. Tambo International Cape Town International King Shaka International Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Mar 2016 Mar 2015 Revenue Aeronautical 3 339 384 3 237 638 1 079 489 978 880 456 724 423 122 Non-aeronautical 1 879 118 1 723 993 611 035 549 554 262 667 244 540 Total revenue 5 218 502 4 961 631 1 690 524 1 528 434 719 391 667 662 EBITDA 4 151 064 3 640 046 1 234 617 966 074 382 707 332 516 Fair value gains/ (loss) on investment properties 143 297 295 310 146 212 71 001 40 933 (17 657) Depreciation, amortisation and impairments investments (473 660) (521 043) (234 825) (288 073) (332 335) (400 329) Loss for equity accounted investments Segment profit/ (loss) before tax 3 826 628 3 761 230 1 160 078 916 133 93 152 (80 360) Reportable total assets 33 186 327 24 008 625 10 315 214 7 312 258 7 110 040 4 108 200 Reportable total liabilities 353 656 250 137 398 942 123 394 102 688 108 821

AIRPORTS COMPANY SOUTH AFRICA 25 Regional Airports Corporate and Other Elimination Total Mar 2016 Mar 2015 Mar 2016 Mar 2015 Mar 2016 Mar 2015 Mar 2016 Mar 2015 319 039 286 259 5 194 636 4 925 899 161 026 145 244 253 105 233 072 (55 822) (48 366) 3 111 129 2 848 037 480 065 431 503 253 105 233 072 (55 822) (48 366) 8 305 765 7 773 936 207 906 86 646 (793 377) (219 763) (5 812) 30 596 5 177 105 4 836 115 (42 308) 95 937 66 310 248 (25 990) (30 596) 328 454 414 243 (179 720) (185 033) 57 716 (82 484) (275) (1 163 099) (1 476 962) (690 435) (155 446) (690 435) (155 446) (13 623) 249 209 (2 286 587) (2 459 404) (32 077) (30 871) 2 747 571 2 355 937 3 914 948 3 403 793 (24 164 678) (9 630 890) (547 786) (722 397) 29 814 065 28 479 589 95 229 91 580 630 286 422 288 (8 029) 1 572 772 996 220

26 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 3. SEGMENTAL INFORMATION (CONTINUED) Below is the reconciliation of the segmental information to that presented in the statement of financial position and statement of comprehensive income. Figures in Rand thousand Mar 2016 Mar 2015 Reportable segment revenue are reconciled to total revenue as follows: Segment revenue for reportable segments 8 108 482 7 589 230 Corporate and other segment revenue 197 283 184 706 Total revenue per statement of comprehensive income 8 305 765 7 773 936 Figures in Rand thousand Mar 2016 Mar 2015 Reportable segment profit before tax are reconciled to total profit before tax as follows: Segment profit before tax for reportable segments 5 066 235 4 846 212 Corporate and other segment profit before tax (2 318 664) (2 490 275) Total profit before tax per statement of comprehensive income 2 747 571 2 355 937 Figures in Rand thousand Mar 2016 Mar 2015 Reportable segment assets are reconciled to total assets as follows: Segment assets for reportable segments 54 526 529 38 832 876 Corporate and other segment assets (24 712 464) (10 353 287) Reportable assets 29 814 065 28 479 589 Unallocated 1 60 810 5 681 Total assets per statement of financial position 29 874 875 28 485 270 Figures in Rand thousand Mar 2016 Mar 2015 Reportable segment liabilities are reconciled to total liabilities as follows: Segment liabilities for reportable segments 950 515 573 932 Corporate and other segment liabilities 622 257 422 288 Reportable liabilities 1 572 772 996 220 Unallocated 1 11 168 174 12 678 784 Total liabilities per statement of financial position 12 740 946 13 675 004 1 Comprises current and deferred tax liabilities/assets, derivative financial instruments and interest-bearing liabilities, as these are carried at the Corporate and other segments. Figures in Rand thousand Reportable segments Corporate and other 2016 Other material items: Fair value gains on investment properties 288 134 40 320 328 454 Depreciation, amortisation and impairments (1 220 540) 57 441 (1 163 099) Loss for equity accounted investments (690 435) (690 435) 2015 Other material items: Fair value gains on investment properties 444 591 (30 348) 414 243 Depreciation, amortisation and impairments (1 394 228) (82 734) (1 476 962) Loss for equity accounted investments (155 446) (155 446) Major customer Included in revenue is an amount of R1.71 billion from one significant client (2015: R1.76 billion), being the Company s largest. There are no other customers who represent more than 10% of revenue for both 2016 and 2015. Total

AIRPORTS COMPANY SOUTH AFRICA 27 A. A.1 MANAGING EBITDA Revenue Accounting policy The Group and Company earn revenue from aeronautical and non-aeronautical goods and services: Aeronautical revenue Aeronautical revenue is recognised when the services are provided to the customer. Type of revenue Determination Landing fees Using regulated tariffs for aircraft landings based on the maximum take-off weight of landing aircrafts for each landing. Passenger service charges Using regulated tariffs for each departing passenger at an airport of departure. Aircraft parking On regulated tariffs for each aircraft parked for over four hours, based on the maximum take-off weight of aircraft parking per 24-hour period. Non-aeronautical revenue Non-aeronautical revenue is recognised when services are provided to the customer. Type of revenue Determination Examples Advertising* Retail* Based on the higher of a minimum guaranteed rental and/or a percentage of turnover. Based on the higher of a minimum guaranteed rental and/or a percentage of turnover. Rental of advertising space to concessionaires. Rental of retail space to concessionaires. Parking* Based on time-based tariffs. Providing short and long-term parking facilities. Car hire* Property rental* Hotel operations Recoveries Finance income Rental is based on the higher of a minimum guaranteed rental and/or a percentage of turnover. Based on medium and long-term rental agreements with tenants. Accommodation income is recognised at the date the guests are invoiced. Recoveries include water, electricity and other utility charges recovered from tenants. Finance income comprises interest income on funds invested and overdue debtors. Finance income is recognised as it accrues in profit and loss, using the effective interest method. Concession fees and the rental of space and kiosks to car hire companies. Rentals of office, air lounges, aviation fuel depots, warehousing, logistics facilities, hotels and filling stations. Invoice value of accommodation and sale of food and beverages. Water and electricity invoices. Charges on overdue debtor accounts, and interest earned on bank balance. Revenue is recognised when it is probable that future economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable for services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax. Revenue is recognised to match the period in which the services are provided. Operating leases Group and Company as a lessor All leases that do not meet the criteria of a financial lease are classified as operating leases. * Operating lease income net of any incentives given to lessees, is recognised on the straight-line basis or a more representative basis where applicable over the lease term and is recognised in operating expenses. When an operating lease is terminated before the lease period has expired, any payment required by the Group by way of a penalty is recognised as income in the period in which termination takes place.

28 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 A. A.1 MANAGING EBITDA (CONTINUED) Revenue (continued) COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Aeronautical Landing fees 1 869 357 1 801 498 1 869 357 1 801 498 Passenger service charges 3 254 874 3 052 185 3 254 874 3 052 185 Aircraft parking 70 405 72 216 70 405 72 216 5 194 636 4 925 899 5 194 636 4 925 899 Non-aeronautical Advertising 187 324 194 267 187 324 194 267 Retail 1 141 492 1 010 619 1 141 492 1 010 619 Parking 536 223 506 569 536 223 506 569 Car hire 226 100 190 126 226 100 190 126 Property rental 646 238 597 930 634 908 584 499 originally stated 646 238 584 914 634 908 571 483 prior year error 13 016 13 016 Hotel operations 132 987 124 669 Recoveries 1 133 881 127 469 133 881 127 469 Other 2 106 884 96 388 92 388 85 272 3 111 129 2 848 037 2 952 316 2 698 821 8 305 765 7 773 936 8 146 952 7 624 720 1 Recoveries include water, electricity and other utility charges recovered from tenants. 2 Other includes permits and airports management services. At the reporting date, the Group has contracted with tenants for the following future minimum cash lease payments in respect of advertising, retail and property leases: COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Contractual future cash lease payments (unrecognised) 8 021 020 5 526 745 8 021 020 5 526 745 Within one year 2 346 055 1 270 705 2 346 055 1 270 705 Two to five years 5 003 138 3 608 907 5 003 138 3 608 907 After five years 671 827 647 133 671 827 647 133 A.2 Other income Other income is any income that accrued to the Group from activities that are not part of the normal operations and is recognised as earned. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Profit on disposal of assets 5 277 5 277 Other 3 66 769 (573) 66 728 9 313 66 769 4 704 66 728 14 590 3 Other includes training income.

AIRPORTS COMPANY SOUTH AFRICA 29 A. A.3 MANAGING EBITDA (CONTINUED) Employee costs Accounting policy Employee costs are recognised as an operating expense in the period during which services are rendered by the employees. Type of benefit Policy Defined contribution plans Obligations for contributions to defined contribution pension plans and medical aid schemes are recognised as an employee benefit expense in profit and loss when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Defined benefit plans The Group operates a number of defined benefit retirement and medical aid plans. Employer companies contribute to the cost of benefits taking account of the recommendations of the actuaries. Net interest income/(expense) is determined on the defined benefit asset/(liability) by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit asset/(liability). Other expenses related to the defined benefit plans are also recognised in operating expenses. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in operating expenses. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. Other long-term employee benefits Short-term benefits The benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is determined by the actuarial assumptions that have maturity terms approximating the terms of the Group s obligations. The calculation is performed using the projected unit credit method. The Group recognises all actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions directly to equity in the statement of other comprehensive income in the period in which they arise. Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or incentive scheme plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Basic 876 110 827 012 850 327 802 523 Performance bonus 165 189 112 870 164 243 112 870 Medical aid Company contributions 62 194 54 651 61 106 54 651 Pension benefits 82 298 75 677 80 652 75 677 1 185 791 1 070 210 1 156 328 1 045 721

30 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 A. A.4 MANAGING EBITDA (CONTINUED) Other operating expenses COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Repairs and maintenance 293 303 300 073 289 503 295 522 Security 250 224 220 816 247 700 218 561 Electricity and water 303 695 272 302 294 710 263 213 Auditor s remuneration 14 306 6 864 13 278 5 924 Operating lease expense* 28 555 28 733 28 124 28 308 Impairment of trade and other receivables 1 176 31 634 812 31 010 Information systems expenses 148 048 123 589 146 179 121 805 Rates and taxes 255 548 247 626 245 744 237 820 Cleaning 115 833 111 483 115 168 110 664 Marketing 63 351 65 336 62 060 64 021 Managerial technical and other fees 132 061 110 917 122 795 110 090 Travel local 34 284 32 464 34 265 31 399 Travel oversees 8 887 10 857 8 623 10 771 Insurance 57 502 43 958 57 306 43 771 Administration 45 658 55 081 31 793 36 147 Training 37 961 34 268 37 932 34 163 Foreign currency losses 5 160 5 160 Consumables 26 535 35 765 15 633 25 252 Socio-economic and enterprise development 54 919 56 424 54 919 56 424 Telephone and fax 17 125 17 783 17 022 17 698 Recruitment expenses 6 921 11 314 6 921 11 314 Legal expenses 34 311 24 848 34 305 24 852 Other expenses 4 630 1 932 17 042 2 782 Bank charges 14 826 14 434 12 285 14 434 Service standards monitoring 13 277 10 514 13 277 10 514 Membership fees 7 084 3 300 6 706 3 300 Loss on sale of assets and liabilities 34 458 33 594 2 009 638 1 872 315 1 952 856 1 809 759 * Accounting policy operating leases expense Company and Group as a lessee Accounting policy Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease liability. This liability is not discounted. Any contingent rents are expensed in the period they are incurred. The Company leases properties for their Group (Corporate) head offices and for their Regional Airports head office. At the reporting date, the Group has outstanding commitments under non-cancellable operating leases for future minimum lease payments. The commitments comprise a number of separate operating leases in relation to properties, none of which is individually significant to the Group or Company. AND COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Contractual future cash lease payments (unrecognised) 65 519 78 897 Within one year 11 494 20 098 One to two years 11 828 21 422 Two to five years 23 098 37 377 After five years 19 099

AIRPORTS COMPANY SOUTH AFRICA 31 B. B.1 ASSETS Investment property Accounting policy Investment property comprises a number of commercial properties that are leased to third parties. Investment property is carried at fair value, determined annually using discounted cash flow projections. Changes in fair values are recorded as other income. Significant judgement, estimate and source of estimation uncertainty The discounted cash flow analysis valuation technique, uses transactions observable in the market at the reporting date. The Group and Company use their judgement to select a variety of methods and make assumptions relating to market yields, escalation rates and key valuation inputs that are mainly based on market conditions existing at each reporting date. Reconciliation of Investment property Figures in Rand thousand Mar 2016 Mar 2015 Mar 2014 Balance at 1 April 4 336 073 3 865 021 2 991 127 Prior period error 524 086 Improvements/additions 155 601 49 094 16 106 Write-offs (30) Change in fair value Recognised in statement of comprehensive income 328 454 414 243 317 315 Originally stated 328 454 360 722 248 006 Prior period error 53 521 48 599 Recognised in other comprehensive income 20 710 Reclassification from property and equipment 61 439 7 715 16 387 Balance at 31 March 4 881 537 4 336 073 3 865 021 COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2014 Balance at 1 April 4 013 925 3 512 277 2 610 053 Prior period error 524 086 Improvements/additions 155 601 49 093 16 106 Write-offs (30) Change in fair value Recognised in statement of comprehensive income 288 134 444 840 345 645 Originally stated 288 134 391 318 276 336 Prior period error 53 522 48 599 Recognised in other comprehensive income 20 710 Reclassification from property and equipment 61 439 7 715 16 387 Balance at 31 March 4 519 069 4 013 925 3 512 277 The amount of rental income from investment properties recognised in profit for the year was as follows: COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Rental payments received 646 238 597 930 634 908 584 499 Per statement of comprehensive income 646 238 597 930 634 908 584 499 Operating expenses directly incurred in relation to investment properties amounted to R8.8 million (2015: R742 000) in the current financial year.

32 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 B. B.1 ASSETS (CONTINUED) Investment property (continued) Fair values Investment properties are stated at fair value, which has been determined based on valuations performed by accredited independent valuers, as at 31 March 2016 and 31 March 2015. Where there was a lack of comparable data, a valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. The following main inputs have been used: AND COMPANY Mar 2016 Mar 2015 Market yield of comparable properties (%) 7 11 9 11 Average escalation of lease rentals (%) 8 10 8 10 Average duration of lease (years) 1 5 3 5 Fair value hierarchy The fair values of these investment properties are determined using valuation techniques which use inputs that are directly or indirectly observable. They are therefore classified as Level 2 on the fair value hierarchy. B.2 Property and equipment Accounting policy Items of property and equipment are measured at cost less accumulated depreciation and impairment losses. Property that is being constructed for future use as investment property is accounted for as work in progress in property and equipment. Gains and losses on disposal are recognised within other operating income in profit and loss. The costs of day-to-day maintenance are recognised in profit and loss. Depreciation is recognised on a straight-line basis to reduce the assets to their residual values over their estimated useful lives. Land is not depreciated. Changes in accounting estimate In March 2016, the Company reassessed and adjusted the useful lives of certain property and equipment based on past experience and assessment of condition following a physical verification performed. The effect of this change in accounting estimates was recognised prospectively from 1 April 2015 onward. As a result of this change, depreciation expense for the year ended 31 March 2016 changed by approximately R39.9 million. It is impracticable to determine the effect of the change in future years.

AIRPORTS COMPANY SOUTH AFRICA 33 B. B.2 ASSETS (CONTINUED) Property and equipment (continued) A summary of the changes in the estimated useful lives of different asset groups is as follows: Category Old range New range Equipment 3 12 years 3 50 years Motor vehicles 5 years 5 30 years Pavements 20 50 years 3 60 years Buildings 20 30 years 6 50 years Impairment The carrying amounts of property and equipment, and intangible assets are reviewed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the asset s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Assets are grouped together into the smallest groups of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit ). An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in profit and loss. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the assets in the unit (group of units) on a pro rata basis. Derecognition The gain or loss arising from the derecognition of an item of property and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Refer to note G.16 for further details on prior period error.

34 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 B. B.2 ASSETS (CONTINUED) Property and equipment (continued) Figures in Rand thousand Cost Mar 2016 Accumulated depreciation Carrying value Land 857 035 857 035 Buildings 13 263 150 (4 706 399) 8 556 751 Equipment 5 247 792 (1 904 267) 3 343 525 Motor vehicles 445 372 (170 323) 275 049 Pavements 7 409 125 (2 695 093) 4 714 032 Work in progress 1 766 085 1 766 085 Total 28 988 559 (9 476 082) 19 512 477 COMPANY Mar 2016 Figures in Rand thousand Cost Accumulated depreciation Carrying value Land 857 035 857 035 Buildings 13 242 853 (4 698 167) 8 544 686 Equipment 5 198 330 (1 890 329) 3 308 001 Motor vehicles 445 372 (170 323) 275 049 Pavements 7 409 125 (2 695 093) 4 714 032 Work in progress 1 765 934 1 765 934 Total 28 918 649 (9 453 912) 19 464 737

AIRPORTS COMPANY SOUTH AFRICA 35 Cost Mar 2015 Mar 2014 Accumulated depreciation Carrying value Cost Accumulated depreciation Carrying value 742 736 742 736 742 736 742 736 13 376 901 (3 754 610) 9 622 291 13 226 507 (3 194 927) 10 031 580 3 638 734 (2 333 609) 1 305 125 4 196 118 (2 658 565) 1 537 553 336 308 (157 624) 178 684 259 527 (156 004) 103 523 8 673 132 (2 128 518) 6 544 614 8 339 244 (1 776 486) 6 562 758 1 196 398 1 196 398 1 172 664 1 172 664 27 964 209 (8 374 361) 19 589 848 27 936 796 (7 785 982) 20 150 814 Cost COMPANY Mar 2015 Mar 2014 Accumulated depreciation Carrying value Cost Accumulated depreciation Carrying value 742 736 742 736 742 736 742 736 13 368 613 (3 750 144) 9 618 469 13 218 227 (3 190 736) 10 027 491 3 605 509 (2 333 598) 1 271 911 4 164 777 (2 658 554) 1 506 223 336 308 (157 624) 178 684 259 527 (156 004) 103 523 8 673 132 (2 128 518) 6 544 614 8 339 244 (1 776 486) 6 562 758 1 196 247 1 196 247 1 172 513 1 172 513 27 922 545 (8 369 884) 19 552 661 27 897 024 (7 781 780) 20 115 244

36 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 B. B.2 ASSETS (CONTINUED) Property and equipment (continued) Figures in Rand thousand Land Buildings Equipment Opening balance at 1 April 2013 742 777 10 405 647 1 195 030 Additions 2 040 117 846 Disposals (27) Reclassifications to investment property (41) (10 922) Transfers 133 557 304 756 Depreciation (498 715) (80 079) Opening balance at 1 April 2014 restated 742 736 10 031 580 1 537 553 Opening balance previously reported 742 777 9 977 909 1 200 295 Adjustments prior period error (41) 53 671 337 258 Additions 70 911 166 088 Disposals (1 008) (72 730) Reclassifications to investment property (2 978) Transfers 95 739 119 563 Depreciation (571 953) (445 350) Balance as at 1 April 2015 restated 742 736 9 622 291 1 305 124 Opening balance previously reported 742 777 9 548 088 1 012 176 Adjustments prior period error (41) 74 203 292 948 Additions 71 073 53 801 47 258 Disposals (1 043) Reclassification to investment Property and computer software (20 899) Transfers* 8 373 185 438 98 321 Depreciation and impairment (443 624) (305 728) Reconstruction reclassification* 96 653 (861 155) 2 197 634 Reconstruction reclassification relating to investment property and intangible assets (40 901) 1 959 Closing balance at 31 March 2016 857 035 8 556 751 3 343 525 * Reconstruction reclassification relates to all the transfers that occurred through the fixed assets verification project to ensure the assets have been recognised in the correct category. The reclassifications to investment property and intangible assets which amount to R38.9 million have been disclosed above. No property and equipment have been pledged or used as collateral to the Group and Company s contractual commitments and obligations.

AIRPORTS COMPANY SOUTH AFRICA 37 Motor vehicles Pavements Work in progress Total 108 573 6 313 522 1 407 643 20 173 192 6 578 74 081 650 812 851 357 (710) (39) (776) (16 345) (27 308) 3 202 444 276 (885 791) (14 120) (252 737) (845 651) 103 523 6 562 758 1 172 664 20 150 814 93 774 6 512 119 1 184 629 19 711 503 9 749 50 639 (11 965) 439 311 64 403 99 224 525 800 926 426 (1 395) (1 099) (76 232) (4 737) (7 715) 44 984 241 780 (502 066) (32 831) (353 311) (1 403 445) 178 684 6 544 615 1 196 398 19 589 848 168 006 6 466 727 1 204 724 19 142 498 10 678 77 888 (8 326) 447 350 22 792 5 632 961 109 1 161 665 (2 273) (34 851) (38 167) (9 915) (30 814) 41 568 12 956 (346 656) (41 030) (340 731) (1 131 113) 75 308 (1 508 440) (38 942) 275 049 4 714 032 1 766 085 19 512 477

38 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 B. B.2 ASSETS (CONTINUED) Property and equipment (continued) COMPANY Figures in Rand thousand Land Buildings Equipment Opening balance as at 1 April 2013 742 777 10 400 590 1 172 437 Additions 2 040 105 289 Disposals (27) Reclassifications to investment property (41) (10 922) Transfers 134 071 304 756 Depreciation (498 261) (76 259) Opening balance as at 1 April 2014 742 736 10 027 491 1 506 223 Opening balance previously reported 742 777 9 973 820 1 168 965 Adjustments prior period error (41) 53 671 337 258 Additions 70 902 159 564 Disposals (1 008) (72 551) Reclassifications to investment property (2 978) Transfers 95 739 119 563 Depreciation (571 677) (440 889) Balance as at 1 April 2015 restated 742 736 9 618 469 1 271 910 Opening balance previously reported 742 777 9 544 273 978 962 Adjustments prior period error (41) 74 196 292 948 Additions 71 073 41 394 43 625 Disposals (231) Reclassifications to investment property and intangible assets (20 899) Transfers 8 373 185 438 98 321 Depreciation and impairment (439 460) (305 217) Reconstruction reclassification* 96 653 (861 155) 2 197 634 Reconstruction reclassification relating to Investment property and intangible assets* (40 901) 1 959 Closing balance at 31 March 2016 857 035 8 544 686 3 308 001 * Reconstruction reclassification relates to all the transfers that occurred through the fixed assets verification project to ensure the assets have been recognised in the correct category. The reclassifications to investment property and intangible assets which amount to R38.9 million have been disclosed above. No property and equipment have been pledged or used as collateral to the Group and Company s contractual commitments and obligations.

AIRPORTS COMPANY SOUTH AFRICA 39 COMPANY Motor vehicles Pavements Work in progress Total 108 573 6 313 522 1 407 492 20 145 391 6 578 74 081 651 326 839 314 (710) (39) (776) (16 345) (27 308) 3 202 444 276 (886 305) (14 120) (252 737) (841 377) 103 523 6 562 758 1 172 513 20 115 244 93 774 6 512 119 1 184 478 19 675 933 9 749 50 639 (11 965) 439 311 64 403 99 226 525 800 919 895 (1 395) (1 099) (76 053) (4 737) (7 715) 44 984 241 780 (502 066) (32 831) (353 313) (1 398 710) 178 684 6 544 615 1 196 247 19 552 661 168 006 6 466 727 1 204 573 19 105 318 10 678 77 888 (8 326) 447 343 22 792 5 632 961 109 1 145 625 (2 273) (34 851) (37 355) (9 915) (30 814) 41 568 12 956 (346 656) (41 030) (340 731) (1 126 438) 75 308 (1 508 440) (38 942) 275 049 4 714 032 1 765 934 19 464 737

40 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 C. C.1 DEBT AND CASH MANAGEMENT Interest-bearing borrowings Mar 2016 Figures in Rand thousand Carrying value Fair value Unsecured Long-term bonds 7 043 047 7 123 743 Nedbank Bullet Loan Infrastructure Finance 147 257 159 176 Southern Sun Hotel Interests (Pty) Ltd 1 500 1 500 L Agence Francaise de Developpement (AFD) 680 416 722 715 L Agence Francaise de Developpement (AFD1) 1 945 296 2 108 501 Nedbank 9 817 516 10 115 635 COMPANY Mar 2016 Figures in Rand thousand Carrying value Fair value Unsecured Long-term bonds 7 043 047 7 123 743 Nedbank Bullet Loan Infrastructure Finance 147 257 159 176 L Agence Francaise de Developpement (AFD) 680 416 722 715 L Agence Francaise de Developpement (AFD1) 1 945 296 2 108 501 Nedbank 9 816 016 10 114 135

AIRPORTS COMPANY SOUTH AFRICA 41 Mar 2015 Mar 2014 Carrying value Fair value Carrying value Fair value 7 549 286 8 785 677 8 239 364 8 867 641 750 000 818 535 1 751 643 1 921 170 166 422 183 485 185 526 202 386 1 500 1 500 1 500 1 500 764 829 840 491 850 069 928 018 1 944 513 2 206 133 1 943 808 2 172 109 12 144 12 144 11 176 550 12 835 821 12 984 054 14 104 968 COMPANY Mar 2015 Mar 2014 Carrying value Fair value Carrying value Fair value 7 549 286 8 785 677 8 239 364 8 867 641 750 000 818 535 1 751 643 1 921 170 166 422 183 485 185 526 202 386 764 829 840 491 850 069 928 018 1 944 513 2 206 133 1 943 808 2 172 109 12 144 12 144 11 175 050 12 834 321 12 982 554 14 103 468

42 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 C. C.1 DEBT AND CASH MANAGEMENT (CONTINUED) Interest-bearing borrowings (continued) Term and debt repayment schedule Figures in Rand thousand Long-term bonds Nominal amount Interest rate AIR03U R500 million JIBAR-linked AIR03 R606 million 10.88% AIR01 R2 billion 8.85% AIR02 R1.712 billion 11.30% AIRL01 R1.191 billion Inflation-linked AIR04U R500 million 11.59% AIR04 R544 million 9.25% AIR05 R232 million 10.00% Long-term loans Southern Sun Hotel Interests (Pty) Ltd 2% Nedbank Bullet Loan JIBAR-linked L Agence Francaise de Developpement (AFD) 10.35% L Agence Francaise de Developpement (AFD1) 10.55% Infrastructure Finance Corporation Limited (INCA) JIBAR-linked Nedbank Prime +2 The table below analyses the Group s interest-bearing borrowings in terms of their maturities. The amounts disclosed below are the contractual undiscounted cash outflows: Figures in Rand thousand Carrying amount Contractual cash flows 6 months or fewer 2016 9 817 516 13 019 312 1 249 356 2015 11 176 550 13 064 417 552 200 2014 12 984 054 19 155 510 1 143 320 The cash to meet these maturities will be obtained from operating activities and reserves.

AIRPORTS COMPANY SOUTH AFRICA 43 Maturity date Mar 2016 Carrying value Mar 2015 Carrying value Mar 2014 Carrying value Oct 2014 506 569 Mar 2016 635 990 1 734 607 Mar 2019 2 003 717 2 002 649 2 002 093 Apr 2023 1 827 312 1 829 041 1 831 075 Apr 2028 1 886 316 1 755 992 1 640 184 Oct 2029 524 858 524 836 524 836 May 2024 561 004 560 959 May 2030 239 840 239 819 7 043 047 7 549 286 8 239 364 N/A 1 500 1 500 1 500 Sep 2020 750 000 1 751 643 Nov 2023 680 416 764 829 850 069 Jan 2026 1 945 296 1 944 513 1 943 808 Nov 2023 147 257 166 422 185 526 Mar 2015 12 144 2 774 469 3 627 264 4 744 690 9 817 516 11 176 550 12 984 054 Between 6 12 months Between 1 2 years Between 2 5 years More than 5 years 652 399 1 275 550 3 600 048 6 241 959 586 003 1 289 149 3 619 625 7 017 440 703 188 1 533 049 3 702 856 12 073 097

44 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 C. C.1 DEBT AND CASH MANAGEMENT (CONTINUED) Interest-bearing borrowings (continued) Term and debt repayment schedule (continued) The Company information is similar to that of the Group except for the loan from Southern Sun Hotel Interests (Pty) Ltd. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2014 Total borrowings of Group 9 817 516 11 176 550 12 984 054 Southern Sun Hotel Interests (Pty) Ltd (1 500) (1 500) (1 500) Total borrowings of Company 9 816 016 11 175 050 12 982 554 List of the persons (natural and incorporated) who hold beneficial interests equal to or in excess of 5% of the total number of securities of that class issued by the Group as at the 31st of March 2016. Bond: AIR01 Bond: AIR02 Bond holder Holding % Bond holder Holding % GEPF bonds 18% Investec Corporate Bond Fund 21% Old Mutual Life Assurance Co SA Ltd 10% Nedcor Capital Treasury 16% Sasol Pension Fund 8% Old Mutual Life Assurance Co SA Ltd 10% Standard Chartered Bank 7% GEPF Bonds 9% Liberty Life 7% Sanlam Life Insurance Limited 6% MMI Group Limited 5% Bond: AIR04 Bond: AIR05 Bond holder Holding % Bond holder Holding % GEPF Bonds 22% Prudential Corporate Bond Fund 17% Old Mutual Multi-Managers 17% Investment Solution Limited 14% Investec Asset Management 16% Allan Gray Balanced Fund 11% PIC UIF 9% Allan Gray Life Global Bal 7% Bond: AIRL01 Bond holder Holding % Mmi Group Limited 25% Investment Solutions Limited 8% Stanlib Inflation Linked 7% Namib-PPMN-Napotel Pension Fund 6%

AIRPORTS COMPANY SOUTH AFRICA 45 C. C.2 DEBT AND CASH MANAGEMENT (CONTINUED) Finance income and expense Accounting policy Finance income comprises of interest income on funds invested and is recognised using the effective interest method in profit and loss. Finance expenses comprise interest expense on borrowings and are recognised using the effective interest method in profit and loss. Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, are capitalised to the cost of those assets, until such time as the assets are substantially ready for their intended use. Investment income earned on the temporary investment of specific borrowings, pending their expenditure on qualifying assets, is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised as an expense in the period in which they are incurred. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Interest received 129 281 87 098 185 807 141 352 Finance income 129 281 87 098 185 807 141 352 Finance costs (1 093 358) (1 314 425) (1 093 210) (1 314 425) Originally stated (1 093 358) (1 313 554) (1 093 210) (1 313 554) Prior period error (871) (871) Gains/(losses) on remeasurement and disposal of trading financial instruments* 59 623 (126 043) 59 623 (126 043) Total finance expense (1 033 735) (1 440 468) (1 033 587) (1 440 468) Net finance expense (904 454) (1 353 370) (847 780) (1 299 116) * Interest rate swaps.

46 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 C. C.3 DEBT AND CASH MANAGEMENT (CONTINUED) Derivative financial instruments and hedging information Accounting policy The Group and Company hold interest rate swaps to hedge their interest rate risk arising from their borrowings. These instruments are recognised initially at fair value (transaction costs are recognised in profit and loss). Subsequent to initial recognition, the method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and; if so, the nature of the item being hedged. The Group and Company documents, at the inception of the transaction, the relationship between hedging instruments and hedged items, as well as their risk management objectives and strategy for undertaking various hedging transactions. The Group and Company also documents their assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately within Gains/losses on remeasurement and disposal of financial instruments. Amounts accumulated in equity are reclassified to profit or loss in the years when the hedged item affects profit or loss. The following information relates to derivative financial instruments included in the consolidated annual financial statements: AND COMPANY Mar 2016 Mar 2015 Figures in Rand thousand Assets Liabilities Assets Liabilities Interest rate swaps cash flow hedges 5 658 75 023 Forward foreign exchange contracts held for trading 712 701 6 370 701 75 023 Current 2 604 701 24 304 Non-current 3 766 50 719 6 370 701 75 023 Interest rate swaps cash flow hedge The Group entered into interest rate swap contracts relating to the Nedbank Bullet Loan and the INCA loan in order to fix the interest rate on these loans. Under the interest rate swap contracts, the Group and Company agree with other parties to exchange, at specified quarterly and semi-annual intervals, the difference between fixed rates and floating rate interest amounts that are calculated by reference to the agreed notional principal amounts. The ineffective portion recognised in profit or loss that arises from cash flow hedges amounts to a loss of R34 million (2015: R59.5 million) for both the Group and Company. The notional principal amounts of the outstanding derivative contracts were as follows (figures in Rand thousand): Notional amount Fair value Interest rate swaps Receive Pay Mar 2016 Mar 2015 Mar 2016 Mar 2015 30 September 2020 3 month JIBAR + 1.92% 10.98% 750 000 (63 050) 30 November 2023 3 month JIBAR + 1.90% 10.98% 250 000 250 000 (5 658) (11 973) (5 658) (75 023) Forward foreign exchange contracts 1 (712) Total derivatives (6 370) 1 The notional principal amounts of the outstanding forward foreign exchange contracts at 31 March 2016 were $2.3 million (2015: 620 thousand and $2 million). The exchange rates vary from R15.3393 to R16.4675 (2015: 12.8982 and $11.8665). The table below analyses the Group and Company s derivative financial instruments in terms of their maturities. The amounts disclosed are the contractual undiscounted cash flows: Figures in Rand thousand Carrying amount Contractual cash flows 6 months or fewer Between 6 12 months Between 1 2 years Between 2 5 years More than 5 years Mar 2016 6 370 6 370 2 209 395 2 166 1 477 123 Mar 2015 75 023 75 023 13 450 10 853 16 633 30 561 3 526

AIRPORTS COMPANY SOUTH AFRICA 47 D. D.1 MANAGING WORKING CAPITAL Trade and other receivables COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Trade receivables 864 002 971 304 847 888 961 149 Impairment of trade receivables (55 559) (87 547) (53 095) (87 547) Loan to joint venture/associate 88 848 59 538 88 848 59 538 Loans and receivables 897 291 943 295 883 641 933 140 Taxation receivable 834 140 Prepayment 3 805 15 544 3 424 15 182 Insurance rent-a-captive receivable* 102 716 97 624 102 716 97 624 Lease receivables 112 182 112 167 Other receivables 10 218 14 527 9 456 14 000 1 014 864 1 183 312 999 237 1 172 113 * The contingency policies are underwritten by Guardrisk and Centriq. The amount receivable represents the balance of the special experience account. The special experience account is payable on demand. Refer to note D.6 Investments for more details on the Group s investment in the cell captive fund. The average credit period is 33 days (2015: 38 days). Trade receivables are carried at cost which normally approximates their fair value due to short-term maturity thereof. An adjustment for impairment of receivables has been made for estimated irrecoverable amounts. Loans to joint ventures and associates bear no interest and have no fixed repayment terms. The maximum exposure to credit risk for trade receivables at the reporting date before the impairment provision, guarantees and deposits held by type of customer was: COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Aeronautical 648 099 744 347 648 099 744 347 Commercial 209 461 192 493 209 461 192 493 Other 95 290 94 002 79 176 83 847 952 850 1 030 842 936 736 1 020 687 COMPANY Figures in Rand thousand Trade and other receivables Allowance for impairment Trade and other receivables Allowance for impairment Mar 2016 Not past due 755 416 739 302 Past due 0 30 days 81 993 81 993 Past due 31 60 days 20 833 20 833 Past due 61 days and above 95 290 (55 559) 91 424 (53 095) Total trade and other receivables 953 532 (55 559) 933 552 (53 095) Mar 2015 Not past due 713 445 702 374 Past due 0 30 days 194 318 194 318 Past due 31 60 days 7 548 7 548 Past due 61 days and above 115 531 (87 547) 116 447 (87 547) Total trade and other receivables 1 030 842 (87 547) 1 020 687 (87 547) Impairment The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Any subsequent reversals of impairment, or recoveries of amounts previously impaired (including debt that have been written off), are reflected within impairment of trade receivables and against the impairment charge in profit or loss. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Balance at 1 April 2015 87 547 56 795 87 547 56 795 Increase/(decrease) in allowance (609) 30 752 (609) 30 752 Bad debts written-off (31 379) (33 843) Balance at 31 March 2016 55 559 87 547 53 095 87 547

48 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 D. D.1 MANAGING WORKING CAPITAL (CONTINUED) Trade and other receivables (continued) Credit quality of financial instruments The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to historical information about the customer. Before accepting any new customer, the Group and Company use an external credit scoring system to assess the potential customer s credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed periodically. 60% of the trade receivables that are neither past due nor impaired were recovered within one month after the reporting date. Of the trade receivables balance, for both the Group and Company, at the end of the year, R147 million (March 2015: R137 million) is due from one significant client. There are no other customers who represent more than 10% of the total balance of trade receivables. As at 31 March 2016, the Group and Company had no significant concentration of credit risk (March 2015: Nil). The allowance account in respect of trade receivables is used to record impairment losses unless the Group and Company is satisfied that no recovery of the amounts owing is possible; at that point the amounts are considered irrecoverable and are written off against the allowance account. The Group and Company believe that, based on historic default rates, no other impairment allowance in respect of trade receivables not past due 90 days is required. D.2 Cash and cash equivalents Cash and cash equivalents consist of: COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Cash on hand 163 75 75 75 Bank balances 1 110 467 920 568 1 098 510 900 566 Money markets 258 938 305 923 257 815 298 273 1 369 568 1 226 566 1 356 400 1 198 914 The Group and Company s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note F.2. Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term, highly liquid investments with original maturities of three months or fewer, and bank overdrafts and are available for use by the Group and Company. Cash and cash equivalents are classified as Level 2 on the fair value hierarchy. D.3 Trade and other payables COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Trade payables 985 833 506 167 973 514 497 969 VAT 47 372 55 384 45 473 55 136 Bonuses payable 11 541 11 393 11 188 10 467 Leave payable 49 333 49 918 48 381 48 782 Deposits received 96 510 81 543 91 054 77 558 Lease payable 67 315 66 545 Other payables* 18 630 19 836 18 574 14 958 1 276 534 724 241 1 254 729 704 870 The Group and Company s exposure to liquidity risk related to trade and other payables is disclosed in note F2. * Other payables includes overtime accruals. The table below analyses the Group and Company s trade and other payables in terms of their maturities. The amounts disclosed are the contractual undiscounted cash outflows: Figures in Rand thousand Carrying amount Contractual cash flows 6 months or fewer Between 6 12 months Between 1 2 years Between 2 5 years More than 5 years Group Mar 2016 1 276 534 1 276 534 1 276 534 Mar 2015 724 241 724 241 724 241 Company Mar 2016 1 254 729 1 254 729 1 254 729 Mar 2015 704 870 704 870 704 870

AIRPORTS COMPANY SOUTH AFRICA 49 D. D.4 MANAGING WORKING CAPITAL (CONTINUED) Cash generated from operations COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Profit before taxation 2 747 571 2 355 937 3 386 491 2 548 688 Adjustments for: Depreciation and amortisation 1 163 099 1 476 962 1 158 359 1 472 223 Impairment of trade receivables 1 176 31 634 812 31 010 Loss/(profit) on sale of assets 34 458 (5 277) 33 594 (5 277) Loss from equity accounted investments 690 435 155 446 5 160 Finance income (129 281) (87 098) (185 807) (141 352) Finance costs 1 093 358 1 314 425 1 093 210 1 314 425 Foreign exchange differences (11 178) Movements in retirement benefit obligation 746 (2 574) (2 593) Movements in provisions 23 831 2 424 23 831 2 424 Deferred income 1 882 (6 147) 1 882 (6 147) Gain on property and equipment (91 357) (91 357) Unrealised fair value gains and losses (365 690) (340 328) (310 141) (376 919) Other non-cash items (1 972) 5 250 407 4 804 047 5 205 419 4 745 125 Changes in working capital: Inventories (68) (211) (352) Other non-current assets (235 592) 82 864 (235 592) 82 865 Trade and other receivables 167 272 (271 758) 172 064 (268 089) Trade and other payables 396 013 (28 044) 390 310 (31 483) 5 578 032 4 586 898 5 531 849 4 528 418 D.5 Tax paid COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Balance at beginning of the year (57 019) (68 183) (61 999) (67 938) Current tax for the year recognised in profit or loss (947 628) (732 071) (945 096) (730 588) Balance at end of the year (60 824) 57 019 (56 263) 61 999 (1 065 471) (743 235) (1 063 358) (736 527) D.6 Other non-current assets COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2014 Mar 2016 Mar 2015 Mar 2014 Lease receivable non-current portion 314 032 76 896 159 789 314 032 76 896 159 789 Originally stated 314 032 127 725 210 617 314 032 127 725 210 617 Prior period error (50 829) (50 828) (50 829) (50 828) Investments # 16 581 18 125 18 097 16 581 18 125 18 097 330 613 95 021 177 886 330 613 95 021 177 886 # Investments relate to the acquisition made by the Company of 100 % shareholding in a cell captive with Guardrisk Life Ltd in September 2003 to fund its obligation arising from 2002, whereby the Company agreed to increase the minimum pension payout to employees. Guardrisk performs a half-yearly review per individual covered to establish the present value of the Company s obligation on the prescribed valuation basis (as approved by Guardrisk Life Statutory Actuaries) in order to assess the Company s commitment as per the assets and expressed liabilities and ensure sufficient life funds are transferred to the non-distributable reserves.

50 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 E. E.1 INVESTMENTS Subsidiaries Accounting policy Subsidiaries are all entities (including structured entities) over which the Company has control. The Company uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Company recognises any non-controlling interest in the acquiree either at fair value or at the noncontrolling interest s proportionate share of the acquiree s net assets. Intra-group transactions, balances and unrealised gains/(losses) are eliminated on consolidation. Unrealised losses are eliminated in the same manner as unrealised gains, but only to the extent that there is no evidence of impairment. The Company s investments in subsidiaries are carried at cost, net of accumulated impairment losses. The Company treats transactions with non-controlling interests that do not result in a loss of control, as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity. COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Indebtedness 794 028 785 586 Total interest in subsidiaries 794 028 785 586 Directors valuation 794 028 785 586 Aggregate after tax (losses)/profits of subsidiary companies (58 450) (109 885) Details of the Company s subsidiaries at 31 March 2016 are indicated below. All subsidiaries are incorporated in South Africa except for Airports Company South Africa Global Ltd which is incorporated in Mauritius. Principal activity Interest held Indebtedness Mar 2016 Mar 2015 Mar 2016 Mar 2015 Subsidiaries OSI Airport Systems (Pty) Ltd Dormant 51% 51% Precinct 2A (Pty) Ltd Property owning 100% 100% 647 060 640 904 JIA Piazza Park (Pty) Ltd Hotel operations 100% 100% Airports Company South Africa Global Ltd Management company 100% 100% 77 958 81 494 725 018 722 398 Special purpose entities # Lexshell 342 Investment Holdings (Pty) Ltd Employee share option plan % % 36 265 34 137 Airport Management Scheme Incentive Scheme Company (Pty) Ltd Employee share option plan % % 30 098 29 051 Sakhisizwe Community Programme (NPC) Non-profit company (Education) % % 2 647 69 010 63 188 794 028 785 586 # The Company s accounts include the consolidation of the Airport Management Share Incentive Scheme Company Proprietary Limited and Lexshell 342 Investment Holdings Proprietary Limited. Although the Airport Management Share Incentive Scheme Company Proprietary Limited is wholly owned by the Airport Management Share Incentive Scheme Trust and Lexshell 342 Investment Holdings Proprietary Limited is wholly owned by the Airports Company South Africa Kagano Trust, in terms of IFRS 10. The Group consolidates these entities as it is exposed to significant risks that are associated with loans extended to the entities to acquire shares of the Company. Sakhisizwe Community Programme NPC is an SPE created and controlled by Airports Company South Africa from a government grant received from the Department of Transport, refer to note G7.

AIRPORTS COMPANY SOUTH AFRICA 51 E. E.2 INVESTMENTS (CONTINUED) Joint venture Accounting policy The Group holds a 50% interest in Airports Logistics Property Holdings (Pty) Ltd. It has been classified as a joint venture due to the decisions about the relevant activities requiring unanimous consent of the parties sharing control. Associates and joint ventures are initially measured at cost and subsequently accounted for using the equity method at an amount that reflects the Group s share of the net assets of the associate or joint venture (including goodwill). Equity accounting is applied from the date on which the entity becomes an associate or joint venture up to the date on which the Group ceases to have significant influence or joint control. Equity accounting of losses is restricted to the interests in these entities, including unsecured receivables or other commitments, unless the Group has an obligation or has made payments on behalf of the associate or joint ventures. Unrealised profits from transactions are eliminated in determining the Group s share of equity accounted profits. Unrealised losses are eliminated in the same way as unrealised gains (but only to the extent that there is no evidence of impairment). Where there is an indicator of impairment the carrying amount of the investment is tested for impairment by comparing its recoverable amount with its carrying amount. Impairment losses are recognised through non-trading and capital-related items. Impairment losses recognised in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount, but only to the extent that the investment s carrying amount does not exceed the carrying amount that would have been determined, net of equity accounted losses, if no impairment loss had been recognised. For a disposal of an associate or joint venture, being where the Group loses significant influence over an associate or loses joint control over a joint venture, the difference between the sales proceeds and any retained interest and the carrying value of the equity accounted investment is recognised as a gain or loss in non-trading and capital related items. On disposal of an associate or joint venture that is a foreign operation, the relevant amount in the Foreign Currency Translation Reserve (FCTR) is reclassified to non-trading and capital related items at the time at which the profit or loss on disposal is recognised. Any gains or losses in other OCI reserves that relate to the associate or joint venture are reclassified to non-trading and capital related items at time of the disposal. Distributions (dividends) received from the entities reduce the carrying amount of the investment. If the entity incurs losses, the Group will only recognise these losses until the carrying amount of the investment reaches zero, unless the Group has incurred obligations or made payments on behalf of the entity. The following represents the Group s share of assets, liabilities, revenue and expenses of the joint venture: Airport Logistics Property Holdings Figures in Rand thousand (Pty) Ltd Opening balance at 1 April 2014 107 383 Share of profits 20 559 Opening balance at 1 April 2015 127 942 Share of profits 19 792 Closing balance at 31 March 2016 147 734 Figures in Rand thousand Mar 2016 Mar 2015 Summarised statement of comprehensive income Revenue 28 120 30 344 Profit for the year 19 792 20 559 Total comprehensive income 19 792 20 559 Figures in Rand thousand Mar 2016 Mar 2015 Summarised statement of financial position Non-current assets 439 300 415 400 Current assets 45 832 49 660 Non-current liabilities (189 149) (208 707) Current liabilities (516) (470) Total net assets 295 467 255 883 Interest in joint venture at 50% ownership 147 734 127 942

52 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 E. E.3 INVESTMENTS (CONTINUED) Investments in associates Accounting policy The Group and Company account for their investments in associates using the equity method of accounting (refer to the investment in joint ventures accounting policy for more detail). Significant judgement, estimates and sources of estimation uncertainty Associates are entities that the Group and Company believe that they have the ability (and power) to participate in the financial and operating policy decisions of the entities, which gives the Group and Company significant influence over them. The following associates exist in the Group and Company: Investment in Mumbai International Airport Private Limited The Group and Company have a 10% equity interest, through Airports Company South Africa Global Limited, in the 30-year concession (with an option for a further 30 years) to modernise the Chhatrapati Shivaji International Airport in Mumbai. Airports Company South Africa is an integral investor in the project, as well as being the designated airport operator. Aeroporto de Guarulhos Participações S.A. The Group and Company have a 20% equity interest, in the 20-year concession to modernise the Guarulhos International Airport. Airports Company South Africa is an integral investor in the project, as well as being the designated airport operator for a five-year period. La Mercy Joint Venture Company (Proprietary) Limited (Dube Trade Port) Airports Company South Africa and the Dube Trade Port Company Limited (LMJVC) has 40% and 60% interest in La Mercy Joint Venture Company (Proprietary) Limited respectively. This joint venture arrangement objective is to commercially enable land holdings in excess of 848 hectares. The vast majority of the land is zoned undetermined and the objective is to rezone and service the properties to unlock development opportunities. Name of company % ownership interest Carrying amount Company Mar 2016 Mar 2015 Mar 2016 Mar 2015 Country of incorporation Direct associates La Mercy JV Property Investments (Pty) Ltd 40% 40% 38 173 38 173 South Africa Aeroporto de Guarulhos Participações S.A 20% 10% 620 459 257 883 Brazil 658 632 296 056 Indirect associates Mumbai International Airport Private Limited* 10% 10% India * The investment in Mumbai International Airport Private Limited is held through a 100% owned subsidiary of the Group, Airports Company South Africa Global. Guarantees issued Equity guarantee an Airport Operator guarantee has been issued by Airports Company South Africa Global Ltd to Mumbai International Airport Private Ltd for an amount of INR3 billion, R727 million for March 2016 (2015: R580 million). This guarantee is limited to Airports Company South Africa Global s performance fee of USD1.2 million for both years.

AIRPORTS COMPANY SOUTH AFRICA 53 E. E.3 INVESTMENTS (CONTINUED) Investments in associates (continued) Reconciliation of movement in investments in associates Figures in Rand thousand La Mercy JV Property Investments (Pty) Ltd Mumbai International Airport Private Ltd Aeroporto de Guarulhos Participações S.A Investment at 1 April 2014 156 209 770 720 495 810 1 422 739 Acquisitions Share of profit 83 178 (81 104) (178 079) (176 005) Share of OCI 201 342 (100 050) 101 292 Investment at 31 March 2015 239 387 890 958 217 681 1 348 026 Acquisitions 362 576 362 576 Share of profit/(loss) (3 273) (84 614) (622 340) (710 227) Share of OCI 2 283 135 365 623 637 761 285 Investment at 31 March 2016 238 397 941 709 581 554 1 761 660 Summarised financial information of associates for March 2016 Figures in Rand thousand La Mercy JV Property Investments (Pty) Ltd Mumbai International Airport Private Ltd Aeroporto de Guarulhos Participações S.A Summarised statement of comprehensive income Revenue 8 763 2 681 392 7 489 380 10 179 535 Loss for the year (8 783) (820 774) (5 274 061) (6 103 618) Total comprehensive loss (8 783) (820 774) (5 274 061) (6 103 618) Summarised statement of financial position Non-current assets 320 958 32 285 200 67 042 471 99 648 629 Current assets 277 388 3 607 335 1 348 913 5 233 636 Non-current liabilities (169) (23 154 179) (63 797 805) (86 952 153) Current liabilities (2 185) (3 295 894) (6 171 988) (9 470 067) Total net assets 595 992 9 442 462 (1 578 409) 8 460 045 Interest in associate at % ownership 238 397 944 246 (315 682) 866 961 Translation differences (2 537) 897 236 894 699 Investment in associate 238 397 941 709 581 554 1 761 660 Total Total

54 AIRPORTS COMPANY SOUTH AFRICA Notes to the consolidated annual financial statements continued For the year ended 31 March 2016 E. E.3 INVESTMENTS (CONTINUED) Investments in associates (continued) Summarised financial information of associates for March 2015 Figures in Rand thousand La Mercy JV Property Investments (Pty) Ltd Mumbai International Airport Private Ltd Aeroporto de Guarulhos Participações S.A Summarised statement of comprehensive income Revenue 248 689 2 274 254 13 285 811 15 808 754 Profit/(loss) for the year 207 945 (811 040) (1 780 788) (2 383 883) Total comprehensive income/(loss) 207 945 (811 040) (1 780 788) (2 383 883) Summarised statement of financial position Non-current assets 326 854 28 136 328 59 409 182 87 872 364 Current assets 301 135 3 306 409 1 804 935 5 412 479 Non-current liabilities (20 756 789) (52 311 973) (73 068 762) Current liabilities (29 523) (1 799 274) (5 289 215) (7 118 012) Total net assets 598 466 8 886 674 3 612 929 13 098 069 Interest in associate at % ownership 239 387 888 674 361 293 1 489 354 Translation differences 2 284 (143 612) (141 328) Investment in associate 239 387 890 958 217 681 1 348 026 Total E.4 Commitments Capital commitments COMPANY Figures in Rand thousand Mar 2016 Mar 2015 Mar 2016 Mar 2015 Contracted for: Within one year 429 473 105 031 429 473 105 031 One to two years 97 173 97 173 Two to five years 100 667 258 147 100 667 258 147 After five years 338 539 338 539 Not yet contracted for: not yet contracted for and authorised by directors # 29 581 129 124 29 581 129 124 995 433 492 302 995 433 492 302 # Commitments authorised by directors not yet contracted for, relate to the partnership investment with Investimentos E Participações EM INFRA-ESTRUTURA S.A. (Invepar), (51% of Guarulhos International Airport concession), with Airports Company South Africa acquiring an additional concession. The Group and Company have committed an initial investment of R450 million.

AIRPORTS COMPANY SOUTH AFRICA 55