FINAL RESULTS ANNOUNCEMENT Year ended 28 February 2013 WILDERNESS HOLDINGS AUDITED YEAR END RESULTS
Agenda Welcome & board changes Parks Tafa, Chairman Review of the period to Feb 2013 Keith Vincent, Acting CEO Final results Outlook and prospects Derek de la Harpe, CFO Keith Vincent, Acting CEO Questions 2
Board changes Board realigned in order to: o Further support our operations in Botswana o Improve executive capacity Changes made: o Parks Tafa appointed Chairman o Michael Tollman appointed Deputy Chairman o Malcolm McCulloch continues as non-executive Director o Andy Payne retired from Board and his post as CEO o Keith Vincent (formerly COO) acting as CEO while a substantive replacement is appointed o Russel Friedman and Dave Van Smeerdijk retired from the Board Russel continues to support our non-profit activities Dave continues as head of sales and marketing 3
Overview of the business Safari operations: 59 camps, 1 028 beds, in eight countries o DumaTau (Botswana) re-built o Two new camps in Odzala National Park, Republic of Congo (management contract under the Wilderness Collection) o Closure of three camps in Namibia: Skeleton Coast, Kulala Wilderness and Palmwag Air operations: 42 aircraft operated by Wilderness Air Travel shops: six offices in four countries Employment: 2 600 people 4
Trading environment Improvement in the overall economic climate mainly driven by recovery in the USA (our largest source market) Demand out of Europe is improving slowly but: o Continues to be soft, and; o Subject to shocks Exchange rates: o USD:ZAR in our favour for most of the period Inflation running at 5.5% to 7.5% across the countries 5
Our response to the climate Realignment of certain business units to lower demand: o Namibia o Zambia o Merger of Zambia and Zimbabwe head office structures Temporary camp closures in green season Continued investment in initiatives to improve productivity o Flying business, especially circuits o Technology: Wilderness Window lowers our cost of acquisition Consumer focused website & search engine optimisation Continued strong focus on marketing and sales efforts o Six countries special SA residents programme Investment in service delivery and the relevance of the Wilderness offering (want to be the first to fill and the last to empty) o Virtual training platforms o Wilderness TV Brand development, including: o Brand simplification (to two trading brands: Wilderness Safaris and Wilderness Collection) o Connecting with customer (on social network platforms 6
Non-financial achievements Significant improvements in product quality Numerous awards for quality and sustainable tourism products o Travel and Leisure Global Vision Award for Leadership o 2012 Integrated Report ranked 5 th in the World in Corporate Register Reporting Awards Further progress in implementing our 4Cs sustainability platform o Full solar installations at Mombo, Duma Tau and Kings Pool Expected saving in diesel consumption = 193 000 litres (P3 million) p.a. o Limited solar installation at Kulala Desert Lodge Increased investment in human capital o Innovations in training and quality management Capex of P64 million: all facilities are properly maintained o Rebuild of Duma Tau 7
Financial highlights Bednight sales decreased by 3.7% on prior period o Normalised 1% increase Revenue per bednight increased by average of 6%, in source currency terms Source currency turnovers (except ZAR) increased: o US$ by 6.4% Reported turnover has increased by 13% to P1 205 million Reported EBITDA is P109 million, 40% up on prior period Profit after tax of P28 million, up 238% on prior year 8
Revenue drivers Our business has three major revenue drivers: Bednight sales Revenue per bednight Exchange rates 9
200 000 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 Total Bednight Sales - All 177 572 180 708 189 871 182 764 - Prior Prior Prior Actual 2011 2012 2013 The above totals when applied against available beds show an increase in overall bed capacity utilisation from 45% to 48.7%. This is because of reduced capacity. 10
Bednight sales by country All camps 90 000 80 000 70 000 60 000 Bednights 50 000 40 000 30 000 20 000 10 000 - Botswana Namibia Seychelles South Africa Zambia Zimbabwe 66 760 70 720 4 333 14 948 10 987 9 824 2011 73 916 59 058 5 446 14 007 14 150 14 131 2012 82 882 50 428 5 155 15 514 19 174 16 718 2013 83 054 45 636 3 026 12 716 20 945 17 387 11
200 000 Total bednight sales - Normalised 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 134 183 153 094 168 417 169 521 - Prior Prior Prior Actual 2011 2012 2013 12
Bednight sales by country - Normalised 90 000 80 000 70 000 60 000 Bednights 50 000 40 000 30 000 20 000 10 000 - Botswana Namibia Seychelles South Africa Zambia Zimbabwe 66 760 42 086 4 333 839 10 341 9 824 2011 73 916 38 715 5 446 7 159 13 727 14 131 2012 82 882 37 099 5 155 7 798 18 765 16 718 2013 83 054 39 151 3 026 5 958 20 945 17 387 13
Millions 350 300 Source currency turnovers 304 322 305 310 250 200 150 100 131 123 107 97 50 0 6.4% 1.1% 10.4% -0.4% 3.8% 8 7 United States Dollar Euro Botswana Pula Namibian Dollar South African Rand Cumulated February FY 2013 Actual Cumulated February FY 2012 Actual 14
Foreign exchange rates 3 Years Foreign Exchange History USD-ZAR- IS 3 Years Foreign Exchange History ZAR- BWP-IS <<------TRADING WORSENS 9.5 9 8.5 8 7.5 Budget 2013 2012 2011 13% <<------TRADE IMPROVES 1.25 1.2 1.15 1.1 Budget 2013 2012 2011-2% 7 1.05 6.5 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 1 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 15
Turnover changes unpacked 2013 change 2012 Group turnover (BWP000s) 1,205,074 13% 1,066,243 Total bednight sales 182,764-3.7% 189,871 Revenue per bednight (Pula) 6,594 17% 5,616 Average exchange rate (simple) 7.71 11% 6.94 Average revenue per bednight (US$) 855 6% 809 16
Abridged income statement BWP 000s 2013 2012 Change Revenue 1 205 074 1 066 243 13% EBITDA 108 901 77 781 40% Impairment losses (14 000) (4 371) Profit on sale of business 0 2 047 Depreciation and amortisation (46 982) (45 718) Operating profit 47 919 29 739 61% Net finance costs (8 205) (5 021) Unrealised forex loss on loans (7 260) (8 207) Share of profits of associates 66 (492) Profit before tax 32 520 16 019 103% Taxation (4 816) (7 824) Profit after tax 27 704 8 195 238% EPS diluted (thebe) 12.79 4.91 160% HEPS basic and diluted (thebe) 11.13 3.76 196% 17
Abridged balance sheet BWP 000s 2013 2012 Assets Non current assets 475 433 451 100 Current assets 319 065 287 451 Total assets 794 498 738 551 Equity and liabilities Capital and reserves 337 469 331 212 Non current liabilities 130 249 145 709 Current liabilities 326 780 261 630 Total equity and liabilities 794 498 738 551 18
Cash flow extracts BWP 000s 2013 2012 Cash flow from operating activities Profit before tax 32 520 16 019 Adjustment for non-cash items 62 145 39 749 Changes in working capital 12 287 23 653 Cash generated from operations 106 952 79 421 Net finance costs (8 205) (5 021) Taxation paid (21 229) (7 026) Net cash generated from operating activities 77 518 67 374 Cash used in investing activities (66 253) (47 469) Net cash used in financing activities (44 960) (28 016) Decrease in cash and cash equivalents (33 695) (8 111) Unrealised exchange gains on foreign cash balances 15 828 13 022 Cash and equivalents at beginning of period 157 504 152 593 Cash and equivalents at end of the period 139 637 157 504 19
Ratio analysis Detail 2013 2012 Gross profit 42.70% 43.32% EBITDA 9.03% 7.29% Effective tax rate 15% 49% Return on equity 8% 2% Debt : equity 45% 44% Interest cover (times) 6 6
Dividends A dividend of 4 thebe per share has been declared o Payable on or about 24 June 2013 o To shareholders registered on 21 June 2013 21
Summary and outlook The economic climate remains uncertain with the USA improving by Europe still depressed Forward booking sheets show impressive improvements in forward bednight sales Cash generation continues - noting: o All facilities are fully maintained o Dividends maintained albeit now according to stated policy Innovation continues in the business: o Technology platforms o People development (Wilderness Business School and the virtual training environment) We are cautiously optimistic about the outlook: o Re-organised and positioned well for growth o Trading conditions in Zimbabwe continue to improve o Strong balance sheet and cash reserves (ungeared) o Exchange rate remains in our favour Now entering our busy season o Botswana camps are full o Improving occupancies elsewhere 22
Questions? 23