TSOGO SUN GAMING

Overview of corporate social investment activities
Companies that operate in highly regulated environments often feel the pressure to commit to CSI as means of obtaining a ‘licence to trade’. At Tsogo Sun Gaming, our values are such that any act of giving back to our communities – who incidentally give us a licence to trade – is considered to be a privilege. The privilege of serving our communities is best demonstrated by the more than 1 000 Staff volunteers across the Tsogo Sun Group, who give unselfishly to help uplift our communities.

The recent merger between Gold Reef Resorts and Tsogo Sun Gaming has created a platform for the enlarged Tsogo Sun Group to engage even more actively in matters CSI and help create the positive change that is so badly needed.

The Tsogo Sun Gaming CSI strategy remains focused at addressing the needs of South Africa’s youth. In this regard, the group budget of R37m, includes initiatives involving youth that are focused around:

• Developing and nurturing sporting talent
• Preserving Arts and Culture within South Africa and developing talented young performing arts scholars and professionals.
• Supporting Education through life skills
• Environmental preservation and regeneration
• Promoting tourism and tourism related job creation.

The Silverstar Soccer League which includes well over 800 youth, from more than 30 schools in the West Rand of Johannesburg, exemplifies the impact sport has on our youth. Participants in the league have achieved near 100% attendance at schools, 30 youth have been selected to play in SAFA sanctioned leagues and have received professional coaching to further nurture their amazing talent. A breeding ground for future Amakozi or Bafana Bafana players? Hopefully so.

The revival of Arts and Culture within South Africa is largely due to the efforts and investments made by the gaming Industry at large. In this regard the efforts of all industry participants are commended. Tsogo Sun Gaming has been privileged enough to play a role in this revival by continuously promoting local casts, musicians, vocalists, performers and artists in productions and events hosted at casinos. The ability to assemble an all South African all Black cast for Broadway productions such as Dream Girls, who have gone on to tour internationally, demonstrates the commitment to create positive change. To promote performing arts related education, the Group has partnered with several leading tertiary institutions to assist in curriculum development and sponsor learners.

The positive economic and social change that is created through increased Tourism activity is well documented and continuously highlighted by Government as a key focus area. Within the Tsogo Sun Group supporting Government in this endeavour to grow tourism has been a core CSI focus. The recently retired CEO of the Group, Jabu Mabuza, championed this course as the Chairman of SA Tourism, and continues to do so in his capacity of Deputy Chairman of the Tsogo Sun Board.

Mike Dowsley the Executive Director of the Suncoast Casino and Entertainment Complex, is spearheading Tourism development in Kwazulu Natal in his capacity as Chairman of the Durban Chamber of Commerce and Industry’s Tourism Committee. Several other senior executives either serve on or are involved with Tourism related boards across the country, to support this key initiative. Investments in tourism related infrastructure and services continue to be made by the Group across South Africa, and to date exceed well in excess of R750m.

PROVINCIAL CSI

GAUTENG

Montecasino

Gold Reef City Casino and Theme Park

Silverstar Casino

KWAZULU-NATAL

SunCoast Casino & Entertainment World

Golden Horse

Black Rock

WESTERN CAPE

Mykonos

Caledon Spa & Casino

Garden Route Casino and Spa

FREE STATE

Goldfields Casino

EASTERN CAPE

Queens Casino

Hemingways

MPUMULANG

Emnotweni Casino

The Ridge Casino

PEERMONT GROUP

CSI Philosophy
Peermont Hotels, Casinos and Resorts is one of South Africa’s most empowered hospitality and gaming companies.

Since inception, the company has been committed to making a sustained contribution towards Broad-based Black Economic Empowerment (BBBEE) and community development. This is achieved through various vehicles such as the Peermont Trusts and Corporate Social Investment (CSI) initiatives.

Four pillars of our CSI strategy:

• Education
• Youth Development
• Entrepreneurial Enrichment
• Environmental Enrichment

Total CSI spend by Peermont Trusts and CSI Funds amounted to R30.7 million, of which:

• R13,5 million was funded by donations from Peermont;
• R8,4 million was generated from investment income; and
• R8,9 million was funded from capital provided through previous Peermont donations and dividends.

A summary of our CSI initiatives:

1. Peermont Education Trust (PET)
The PET offers full scholarships (covering the cost of tuition, books, mentorship, accommodation and living expenses) to deserving young people from underprivileged backgrounds, who have demonstrated potential and ability to succeed in their chosen fields of study. From 36 students sponsored by the Trust in 2010, twenty passed, three failed and thirteen will graduate. This demonstrates the level of commitment from our students, achieving a superb 86% pass rate.

The trustees awarded eleven new scholarships for the 2011 academic year (at a cost of R76 400 each) bringing the total number of students to 30.

To date, the PET has financially supported a total of 83 university graduates in fields such as commerce, actuarial science, economics, mechatronics, physics, genetics and medicine.

In addition, the PET has sponsored over 400 learners under the Lesedi Industrial Skills Programme, which offers training for learners to become electricians, millwrights, fitters and turners, motor mechanics, nurses, chefs and other skills.

In addition, ten candidates were placed with HASA (Housekeeping Association of SA) for a one-year housekeeping course (cost R306 100); fourteen nursing students were sponsored to further their training (cost R299 600); six candidates were sponsored for a draughting course at the African Academy (cost R123 000); twenty candidates sponsored to complete a hospitality qualification course (cost R396 0000); and twenty-five candidates sponsored for training in electrical learnerships (cost R1 321 800).

2. Peermont Children’s Trust (PCT)
The purpose of the PCT is to provide social, educational and emotional upliftment to children in disadvantaged areas where we operate.

To date, the PCT has refurbished two nursery schools for disadvantaged children; erected 40 jungle gyms for learners; established nine afterschool centres; created 140 media centres; sponsored learners under The Star Schools project; donated maths and science textbooks and equipment; sponsored sports coaching clinics for educators; purchased uniforms for underprivileged learners; funded special programmes for disabled learners and sponsored career-guidance workshops for 30 schools in Ekurhuleni.

3. Peermont School Support Programme (PSSP)
The PSSP project is a five-year, R40 million commitment to support the establishment of the “centres of excellence” in carefully selected high schools within Ekurhuleni and Sedibeng municipality catchment areas. The main objective is to empower our partner high schools to deliver quality matric results on a sustainable basis. Special focus is on Maths, Science, English and Technology.

The ethos of the programme is one of collaboration and sharing best practice based on a model of continuous learning.

The seven supported high schools are:

• General Smuts High School – Vereeniging • Germiston High School – Germiston
• Lethulwazi Secondary School – Vosloorus
• Sunward Park High School – Boksburg
• Tembisa Secondary School – Tembisa
• Thuto-Lesedi Secondary School – Vosloorus
• Unity Secondary School – Daveyton

The programme has been endorsed by authorities of the GDE (Gauteng Department of Education) and the GGB (Gauteng Gambling Board).

Under the PSSP programme, the company established Computer Laboratories at each of the high schools to specifically offer remedial-type teaching (i.e. language comprehension and mathematics) to address the challenges and help bridge the gap posed by primary school learners entering secondary schools illprepared and under equipped. The project will also cover the costs towards insurance, ADSL rental, security and armed response.

As an extension of the PSSP programme, 20 primary schools that serve as feeder schools to our partner schools were included into the programme, giving them a grant of R700 000 each.

The PSSP allocated its funds towards interventions that support systemic change in three core areas:

i. Leadership and management
ii. In the classroom
iii. Extra-curricular activities

We aim to build effective leadership in the schools, secure alignment among all stakeholders, encourage positive behaviour change towards education, thus assisting to create a permanent and systematic change in the schools. The programme will touch the lives of about 30,000 learners over the five-year period.

4. Community Development and Infrastructure
Funds These funds have significantly impacted on the lives of the lessserved communities through the following projects.

4.1. Public Infrastructure
Projects undertaken include the upgrading of walkways in Tembisa, upgrading of the so-called “death bend” at the OR Tambo International airport / R21 interchange, upgrading of Jones Road and the Griffiths off-ramp and the upgrading of the K157 / P157 interchange as well as the Olifant Fire Station.

4.2 East Rand Business Precinct

• This project is to prevent crime in the Jet Park and surrounding areas
• We have supplied and maintain two armed response vehicles that patrol the area
• We have repaired broken street lights, pot holes, etc. in the East Rand Business Precinct.

4.3 Winnie Mandela Informal Settlement crime prevention

• A community upliftment project to reduce crime in the area
• Two police vehicles were sponsored and are fully maintained by the company

5. The Ekurhuleni Peermont Chambers of Commerce Trust (ERCoCT)
The Ekurhuleni Peermont Chambers of Commerce Trust, EPCoCT (formerly known as the East Rand Chambers of Commerce Trust, ERCoCT), has its main objective the funding of small, medium and micro enterprises operating within the Ekurhuleni region in Gauteng. Over the past three years, the EPCoCT Trust has created numerous sustainable enterprises and empowered entrepreneurs to operate commercially viable businesses in the mainstream economy.

5.1 A brief description on projects supported:

i. Conducive Business Enterprises: specialises in professional consulting, commissioning and maintenance services in the discipline of electrical engineering. Funding went towards the training of seven technicians to attend an electrical technicians training programme. Grant R417 000

ii. Boikano Accountants Inc.: provides financial management, tax planning and corporate compliance services to private and public companies, including government and NGOs. Funding went towards a training programme to up-skill disadvantaged black accounting graduates to qualify as accounting officers. Grant R287 949

iii. African Olive Trading: specialises in the processing and packaging of vegetables, which are then sold to clients such as hospitals, institutional homes, caterers and canteens. The grant went towards the purchase of vegetable processing equipment; refrigerated vehicle and office furniture as part of an expansion strategy. Grant R290 218

iv. Vermi Trade: specialises in vermicomposting trade operations, which involves the breeding of earthworms, production and sale of various vermiculture products. Funding towards the establishment of a production plant and purchase of earthworms and equipment. Grant: R451 200

v. Khuphukani Bakery and Confectionery: supplies baked products to the greater community of Daveyton and surrounding areas. Funding went towards the construction of a bakery building in Daveyton, to be unveiled end of October 2011. Grant: R328 f328

vi. Greenville Laundry: services the laundry and dry cleaning market in the south of Benoni’s CBD in Ekurhuleni. The company offers coin-operated self-service and in-house laundry services to private and business clients. Funding went towards the procurement of new laundry equipment and working capital as part of the expansion. Grant: R212 669

For the period 1 April 2010 to 31 March 2011, the Trust disbursed R1, 657,395 to businesses owned and operated by PDIs that demonstrated a potential to create jobs.

6. North West (NW) Hotel Casino Convention Resorts CSI
The NW properties Mmabatho Palms and Rio Casino are very much involved in projects that help empower local previously disadvantaged communities. The employees of Mmabatho Palms (with the technical support of the maintenance team) rolled up their sleeves and helped with the refurbishment of the Legae Motheo home in the Seweding Village in Mahikeng. Through the intervention of our staff, the home was hospitable to the many disadvantaged children who utilise the place for accommodation. Other projects include a soup kitchen at Naledi Life Skills centre, purchasing Christmas gifts for needy children, donating wheelchairs for handicapped basketball players, talent development for the youth interested in golf by supporting the Junior Golf Foundation, support for students doing supplementary education at the local hotel school and contributing towards efforts aimed at preventing crime in cooperation with the local SAPS.

7. KwaZulu-Natal (KZN) CSI
Umfolozi Hotel Casino Convention Resort and Mondazur Resort
The company has joined hands with the local Business Against Crime unit to boost efforts aimed at combating crime in the area. The programme also works with rehabilitating past criminal offenders to re-integrate them into the community by offering them various skills to fend for themselves. Projects such as feeding schemes for the Hope Project, Thuthukani School project for handicapped children and the Bevs Orphanage house. The other projects include Sokhaya Crèche for disadvantage children, Ikhwezi Bus Service for the Siyathuthuka Children, purchasing furniture and household goods for the Izulu Orphanage, the Rotary Club of Empangeni charity Project and the Empangeni trauma unit. Mondazur also supports a daily feeding scheme for 150 disadvantaged children in the South Coast area.

8. Graceland Hotel, Casino and Country Club
The company established the Peermont Southern Highveld Community Development Trust which offers bursaries to students from disadvantaged backgrounds to further their tertiary education. The Trust has supported a total of 9 students by paying for tuition, purchasing textbooks and paying for accommodation. One of the students Michael Mahlangu obtained a B.Sc degree in Aeronautical Engineering from Wits University in 2011. Other projects include a feeding scheme for Basizeni school for learners with special needs, healthcare for the Baisisikazi Day Centre and Isiphephelo home-based care centre, where we pay the salary of a professional sister, assisting with primary healthcare, health education and training for caregivers, donated beds to the Zanele Mbeki home for the elderly and the Bong’umusa Day care centre for the poor. We also assist with paying for transport for local caddies from the local community.

9. Frontier Inn and Casino
Projects supported by the resort relate to youth development by supporting local sporting development to keep the youth engaged and away from engaging in criminal activities. We have supported the Eden Teen Challenge, the Cannonball Run, Bloemhof Golf Club and the SA Championship Darts. We have also made donations to the Lettie Fouché School for the mentally handicapped children.

10. Khoroni Hotel, Casino and Convention Resort
The resort established the Khoroni Community Education Trust to provide bursaries to deserving candidates from disadvantaged backgrounds in our catchment area. The resort also supported local BEE businessmen to run a cab service for hotel residents.

CSI Projects – Actual CSI Spend

SUN INTERNATIONAL

As a group, Sun International has strategically amended its CSI commitment to a focused and dedicated resourced effort relating to Social Economic Development (SED). This effort includes projected increases in monetary resources, escalating to a total of 4% of profit after tax by the end of 2013. The distribution of the available resources will be directed towards obtaining the optimum benefit in terms of the Broad-Based Black Economic Empowerment Codes. Appropriately, contributions will be directed to Social Economic Development.

The Group’s community projects are managed both centrally and by individual units, with properties focusing on the immediate communities in the areas of their operations. Contributions are focused on a number of projects within the areas of Health and Welfare, Education and Community Development.

In Health and Welfare, projects such as Reach for a Dream, the Tapologo AIDS Hospice and Emmanuel’s Haven receive substantial assistance from Sun International and provide care for children in distress or in need.

In Education, secondary schools, bursary funds and the Study Trust receive financial aid from the company in areas ranging from the Ekukhanyeni Primary School in Gauteng to the Clayhaven Primary School in KwaZulu-Natal.

The company is one of the major sponsors of the South African paralympic team that will compete in London in 2012. Sun International is also a founding member of the Arts and Culture Trust which has supported more than 500 projects throughout the country.

Socio-economic contribution

One percent of profit after tax is committed to Social Investment and 2.25% to Enterprise Development. In 2010/11, total Corporate Social Investmentspend was R18.3 million. This was a decrease from the R20 million spent in the previous year, in line with the Group decision to channel more money into Enterprise Development. The Sun International Social Community Development Trust was established to ensure that all projects were aligned with specific criteria. The company has identified five focus areas for SED: Health and Welfare, Education, Community Development, Sports, Arts and Culture, and "Other".

Where appropriate, Sun International has also entered into public/ private partnerships to ensure the sustainability of certain projects.

Community Development expenditure increased by 74.7% as compared with the previous financial year. Sun International business units operate across various regions, and many of the community development projects are sparked by specific local needs.

Education expenditure increased by 24.4% compared to 2010. This was driven by the dire need for schools and skills – the shortage of which has been driven by poor economic conditions. Many parents cannot afford to pay for school fees or further education, leading Sun International to become involved in the Study Trust.

The overall Health and Welfare contribution was reduced by 41.3% compared to the previous financial year. This was largely owing to the increased attention given to Community Development and Education.

Some of Sun International’s flagship projects are included below to demonstrate the type of initiatives in which the Group has been involved during 2011, and is not a comprehensive listing of all it’s projects.

The group has also been active in CSI projects in neighbouring countries:

Sun International Zambia spends some US$200 000 every year on projects that supplement the Government’s development programmes. A number of community projects have been undertaken in Livingstone and Kazungula, including interventions for the treatment of drinking water in order to reduce the incidence of water-borne diseases. The company also supports a number of orphanages, providing them with educational materials, foodstuffs, clothing and other everyday needs.

In Livingstone, the company supports farming projects where blind workers and widows living with HIV/AIDS have been trained in agriculture and enabled to sell their produce in local markets. Sun International Zambia supports fish-farming, mushroom-growing, and egg-rearing projects, and created the Farmers Market where 400 small-scale farmers can sell their goods.

In Botswana, Gaborone Sun continues to support the SOS Children’s Village and has donated funds to assist the new village in Serowe. The village currently has 76 children who have benefited through additional facilities that were built. In Lesotho, Namibia and Swaziland various projects that have been in place for many years continued to receive support, including support for clinics that were built in and around the areas in which the units operate.