Cresta Marakanelo : 2021 INTEGRATED REPORT

CRESTA MARAKANELO LIMITED

INTEGRATED REPORT

2021

INTEGRATED REPORT

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CRESTA MARAKANELO LIMITED

INTEGRATED REPORT

Performance

Highlights

Revenue

12%

BWP216,4million

Revenue for the year from continuing operations was P216.4 million, 12% higher than the P193.1 million achieved in the prior year.

Cash Generated from Operations

480%

BWP33,8million

Cash generated from operations increased by 480% compared to prior year.

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General

Information

NATURE OF BUSINESS

Cresta Marakanelo Limited ("the Company") and its wholly owned subsidiary Cresta Golfview Hotel Limited (together "the Group") is a public limited company listed on the Botswana Stock Exchange and primarily operates hotels and related services in Botswana and Zambia. The Company ceased operations at Cresta Golfview Hotel in Zambia on 30 September 2021. Of the 11 properties, 6 are owned (Mowana Safari and Spa, Marang Gardens, Thapama Hotel, President Hotel, Cresta Lodge, and Rileys Hotel), 5 are leased from different landlords (Maun Hotel, Mahalapye Hotel, Jwaneng Hotel, Botsalo Hotel and Marang Residency). Most hotels are operated as business hotels and they offer accommodation and conferencing facilities except for Mowana Safari Resort and Spa which is a leisure property, offering accommodation and conferencing facilities, health and beauty spa, curio shop, game drives and boat cruises.

DIRECTORS M K Lekaukau - Chairman

J Y Stevens

T G Ondoko

1. Majuru
2. Molefe

1. Sainsbury

1. Morulane - Managing Director

CRESTA MARAKANELO LIMITED

INTEGRATED REPORT

SECRETARY

P Mothoteng (resigned 4 August 2021)

Wise Leadership (Pty) Ltd

(appointed 19 August 2021)

TRANSFER SECRETARIES

Central Security Depository Botswana (CSDB)

REGISTERED OFFICE

2nd Floor, Marula House, Prime Plaza, Plot 74538, Gaborone

INDEPENDENT AUDITORS

Deloitte & Touche

BANKERS

Absa Bank Botswana Limited

Absa Bank Zambia Plc

Bank Gaborone Limited

First National Bank of Botswana Limited

Stanbic Bank Botswana Limited

CURRENCY

Botswana Pula

Contents

OVERVIEW

1. Board of Directors

1. Chairman's Statement

1. Executive Management

1. Managing Director's Report

CORPORATE GOVERNANCE

1. The Board
2. Board Evaluation

1. Internal Control Systems

1. Remuneration Report

1. King III Compliance Checklist

SUSTAINABILITY REPORT

1. Company and Business Overview
2. Cresta Marakanelo Business Model
3. Key Risks
4. Our Response to COVID-19 Headwinds
5. Our Six Capitals

33 Our Key Stakeholders

CORPORATE SOCIAL RESPONSIBILITY

1. 9,000 Masks Drive

1. Uhuru TeamBW 2021

1. Mma Bontle Circle Mentorship Moment

FINANCIAL STATEMENTS

1. Directors' Statement of Responsibility and Approval of the Financial Statements
2. Independent Auditor's Report

1. Statements of Profit and Loss and
   Other Comprehensive Income
2. Statements of Financial Position
3. Statements of Changes in Equity
4. Statements of Cash Flows
5. Summary of Significant Accounting Policies

1. Financial Risk Management

1. Critical Accounting Estimates and Assumptions

1. Notes to the Financial Statements

SHAREHOLDER INFORMATION

1. Shareholder Information
2. AGM Notice

109 Proxy Form

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CRESTA MARAKANELO LIMITED

INTEGRATED REPORT

Board of

Directors

Moatlhodi Lekaukau	John Yendall Stevens	Tshepidi Moremong-Ondoko
Non-Executive Chairman	Non-Executive -	Independent Non-Executive Director
	Lead Independent Director

Gavin Sainsbury	Pius Komane Molefe	Osborne Majuru
Non-Executive Director	Independent Non-Executive Director	Non-Executive Director

Mokwena Morulane

Executive Director - Managing Director

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CRESTA MARAKANELO LIMITED

INTEGRATED REPORT

Moatlhodi Lekaukau

Non-Executive Chairman

Appointed 30 November 2017

Member of the Human Resources

and Nominations Committee

Mr Lekaukau is the Managing Director of Kalahari Capital and the Executive Chairman of YMH Media Group, a diversified

media holding company with interests in Botswana and Zambia. His previous roles include Acting Managing Director and Chief Investment Officer of Botswana Development Corporation, Chief Executive Officer of Standard Chartered Bank Botswana and Partner and Head of Mergers

and Acquisitions at Deloitte in South Africa. Mr Lekaukau is a member of the South African Institute of Chartered Accountants, a fellow member of the Botswana Institute of Chartered Accountants and holds a Bachelor of Commerce Degree and Postgraduate Diploma in Accounting from the University of Cape Town. Mr Lekaukau has served on several boards of listed and private companies and his current board memberships include Water Utilities Corporation.

John Yendall Stevens

Non-Executive Director - Lead

Independent Director

Appointed 22 January 2010

Chairman of the Finance, Risk and Audit

Committee

Mr Stevens served Deloitte in South Africa and Botswana for over 33 years. Eight of those years were as partner in charge of Deloitte Botswana. Mr Stevens retired from Deloitte in 2007 and took up the challenge of private consultancy. He holds a B.Comm Degree from Rhodes University, is a fellow member of the Botswana Institute of Chartered Accountants, a member of the South African Institute of Chartered Accountants and a member of the Institute of Chartered Accountants of England and Wales.

Mr Stevens also serves as a director on the Board of Standard Chartered Bank Botswana.

Tshepidi Moremong-Ondoko

Non-Executive Director

Appointed 30 November 2017

Member of the Finance, Risk and Audit

Committee

Ms. Moremong-Ondoko holds a BA Degree in Economics and Political Science from Swathmore College and an MBA in Finance and International Business from Columbia University Business School. Ms. Moremong-Ondoko has a career spanning 20 years in financial services in both private equity and investment banking. She has worked for various institutions in Africa and Europe, including Aureos Capital, Goldman Sachs and Rand Merchant Bank. Ms. Moremong- Ondoko is currently the Chief Operating Officer for Africa50 a pan-African infrastructure investment platform.

Gavin Sainsbury

Non-Executive Director

Appointed 1 September 2011

Mr Sainsbury was the Chief Executive Officer of Masawara Financial Services from 2015 to December 2021. Before joining Masawara, he was Chief Executive Officer of TA Holdings Limited, a company previously listed on the Zimbabwe Stock Exchange. Prior to that, he was the Managing Director of Colcom Holdings Limited from 2000 to 2010. Mr Sainsbury is a qualified Chartered Accountant and obtained his qualification in 1981 in both Zimbabwe and South Africa. Mr Sainsbury worked for Deloitte & Touche Zimbabwe from 1981 to 1998; he was appointed a Partner at Deloitte & Touche in 1989.

Mr Sainsbury served as a director on a number of Boards including Botswana Insurance Company, Zimnat Life Insurance Company Limited and Dandemutande Investments Pvt Limited.

Pius Komane Molefe

Non-Executive Director

Appointed 15 January 2011

Chairman of the Human Resources and

Nominations Committee

Mr Molefe is the Chief Executive Officer of BBS Limited. He holds a Post Graduate Diploma in Economics from the University of Sussex in the United Kingdom. Mr Molefe previously worked for Barclays Bank of Botswana and Ministry of Finance among others. At the Ministry of Finance, he was involved in the handling of all development projects.

Mr Molefe was further involved in the development of policies regulating the financial services sector. He was involved in the establishment of the Botswana Stock Exchange and also served as a member in the exchange.

Osborne Majuru

Non-Executive Director

Appointed 22 January 2010

Member of the Finance, Risk and Audit

Committee

Mr Majuru is a Chartered Accountant (Z) with an Accounting (Honours) Degree from the University of Zimbabwe. Osborne has more than 20 years senior management experience including as Financial Director for Anglogold Ashanti in Zimbabwe, Tanzania and Isle of Man; Chief Executive Officer for Cresta Group of Hotels; and Zuva Petroleum (Pvt) Limited. In 2019, Mr Majuru was appointed Chief Executive Officer in charge of the Cresta Hotels Cluster for the Masawara Group. Prior to this, he was the Group Chief Financial Officer and thereafter the Group Chief Strategy Officer for Masawara Zimbabwe (Pvt) Limited.

Mr Majuru serves on various Boards including Cresta Holdings (Pty) Limited, Cresta Hotels (Pvt) Limited, Grand Reinsurance and Minerva Risk Advisors.

Mokwena Morulane

Executive Director

Appointed 10 October 2017

Managing Director

Mr Morulane is the Managing Director of Cresta Marakanelo Limited. Mokwena started his career at Deloitte, and has held leadership roles in the mining, oil and financial services sectors.

Mr Morulane is a fellow of the Association of Chartered Certified Accountants (ACCA), and a member of the Chartered Institute of Secretaries in Southern Africa. He is also a fellow member of the Botswana Institute of Chartered Accountants. He holds a BA (Hons) in Accounting from the University of Luton, United Kingdom. He has also completed the Saïd Business School, University of Oxford Executive Leadership Programme.

Mr Morulane serves on the Boards of Minergy Limited, Masiela Trust Fund, Old Mutual Life and Sentlhaga Pension Fund.

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