Cresta Marakanelo : INTEGRATED REPORT & AGM NOTICE

Integrated

REPORT 2022

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Performance General

Highlights Information

Cash flow generated from Operating Activities

↑P65.1million

During the year, P65.1 million was generated from operating activities, a significant improvement from the prior year when P19.0 million was generated.

Profit Before Tax

↑P21.7million

The Group's full year profit before tax of P21.7 million, was P74.5 million higher than same period last year which reported a loss before tax of P52.9 million.

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. 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

D C Mphoeng

W M Bojosi

J M Hundah

M Morulane - Executive

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COMPANY SECRETARY

Wise Leadership Proprietary Limited

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

Bank Gaborone Limited

First National Bank of Botswana Limited

Stanbic Bank Botswana Limited

CURRENCY

Botswana Pula

Integrated Report 2022

ContentsIntegrated Report 2022

Overview

1. Board of Directors

1. Chairman's Statement

1. Executive Management

1. Managing Director's Report

Corporate Governance

1. The Board
2. Internal Control Systems

1. Remuneration Report

1. King III Compliance Checklist

Sustainability Report

1. Company and Business Overview

1. Our Six Capitals

1. Industry Related Headwinds
2. Cresta Marakanelo Business Model

1. Cresta Marakanelo Limited Key Risks
2. Our Key Stakeholders

Corporate Social Responsibility

1. Corporate Social Responsibility Initiatives

1. Masiela Trust Fund Donation
2. School Uniform Donation for Underprivileged Students

1. Drug Free is the New Cool Movement

1. Conclusion

Financial Statements

1. Directors' Statement of Responsibility & 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. Notice of Annual General Meeting
3. Proxy Form

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Integrated Report 2022

Board of Directors

The Board is committed to maintaining high standards of business integrity and professionalism in all its activities, and continues to support the highest standards in corporate governance.

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Integrated Report 2022

Board of Directors (continued)

Moatlhodi Lekaukau

Independent 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.

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 Ondoko

Independent Non-Executive Director

Appointed 30 November 2017

Member of the Finance,

Risk and Audit Committee

Mrs 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. Mrs 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. Mrs Ondoko is currently the Chief Operating Officer for Africa50 a pan-African infrastructure investment platform.

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