INTEGRATED ANNUAL REPORT - JSE · The Integrated Annual Report, including the annual...

INTEGRATEDANNUAL REPORT 2013

1TremaTon І Integrated Annual Report 2013

CONTENTS1 General Information

2 ChairmanandChiefExecutiveOfficer’s Joint Report

4 ChiefFinancialOfficer’sReport

7 Company Structure

8 Directorate

12 InvestmentPortfolioOverview

14 Five-yearReview

16 CorporateGovernanceReview

Annual Financial Statements

23 ReportoftheAuditandRiskCommittee

24 Directors’ResponsibilityandApproval

25 IndependentAuditor’sReport

26 Directors’Report

30 StatementsofFinancialPosition

31 StatementsofComprehensiveIncome

32 StatementsofChangesinEquity

34 StatementsofCashFlow

35 NotestotheAnnualFinancialStatements

87 AnalysisofShareholders

88 NoticeofAnnualGeneralMeeting FormofProxy(attached)

GENERAL INFORMATIONCountry of incorporation and domicile South Africa

Nature of business and principal activities Investments

Directors MKaplan(IndependentNon-executiveChairman) AJShapiro(ChiefExecutiveOfficer) ALWinkler(ChiefFinancialOfficer) AGroll(ExecutiveDirector) JPFisher(IndependentNon-executiveDirector) AMLouw(IndependentNon-executiveDirector) RStumpf(Non-executiveDirector)

Registered office 2ndFloor,TheHudson,30HudsonStreet DeWaterkant,CapeTown,8001 Tel: 021 421 5550 Fax: 021 421 5551

Postal address: POBox7677,Roggebaai,8012

Website:www.trematon.co.za

Bankers:ABSABankLimited

Auditors:Mazars

Company secretary SA Litten 2ndFloor,TheHudson,30HudsonStreet, DeWaterkant,CapeTown,8001

Company registration number 1997/008691/06

Audit and risk committee JPFisher(Chairman) M Kaplan AMLouw

Remuneration committee MKaplan(Chairman) AMLouw R Stumpf

Social and ethics committee JPFisher(Chairman) M Kaplan AMLouw

Investment committee MKaplan(Chairman) JPFisher A Groll AJ Shapiro ALWinkler

Attorneys:Bernadt,Vukic,Potash&Getz

Sponsors:SasfinCapital,adivisionofSasfinBankLimited

Transfer secretaries LinkMarketServicesSouthAfrica(Pty)Limited POBox4844,Johannesburg,2000 19AmeshoffStreet,Braamfontein Tel: 011 713 0800 Fax: 086 674 4381

TREMATON І Integrated Annual Report 2013

TheIntegratedAnnualReport,includingtheannualfinancialstatements,hasbeenpreparedinaccordancewithInternationalFinancial ReportingStandardsandinthemannerrequiredbytheCompaniesAct71of2008.TheannualfinancialstatementshavebeenauditedincompliancewiththisAct.

Thegroupfinancialresultshavebeenpreparedunderthesupervisionofthechieffinancialofficer,MrALWinklerCA(SA).

Publishedon:22November2013Financialyearend:31August2013

Subsequent to year-end Resi purchased 24 units in Hibernian Towers, Strand, Western Cape, including the penthouse suite. This landmark building is on the Golden Mile and offers premium quality residential accommodation with wonderful views of Strand and Gordon’s Bay.

Club Mykonos reception has been completely redesigned and refurbished in keeping with the RCI Gold Crown status of the resort and its recently acquired 4-star grading.



CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S JOINT REPORT

Trematonisaninvestmentholdingcompanywhichinvestsinassetswhichwebelievetobeundervalued.By“undervalued”we mean that the price at which we can purchase or gaincontroloftheassetisatadiscounttothepricewhichcanberealisedinduecourse.Thebroadaimistoachieveanaverageinternalrateofreturnofmorethan20%.

Toachieveaconsistent20%internalrateofreturnovertimeis neither easy nor guaranteed. It is more likely that someinvestmentswillyieldmorethanthiswhileotherswillfallshortofthisobjective,butweaimtohaveadecentbattingaverage.

Trematon owns certain operating businesses with stableincome but these tend to be outweighed by investmentactivitiesduringtheyear.Thepatternofinvestmentrealisationsisirregularwhichresultsinalumpyearningspatternthatdoesnotfollowaneasilypredictablepattern.

Forthecurrentyearthetotalprofitattributabletoshareholderswas R51.5 million (2012: R18.9 million). The bulk of theprofitwasduetofairvalueadjustmentsmadeoninvestmentproperties.Agreementsforthesaleoftwoofthesepropertieswere concludedduring the year and transferwill takeplaceafteryear-end.

Thisreportfocusesonadescriptionofthevariousinvestmentsaswellassomeoftheimportantaspectsofoperations.Foradetailedreviewofthefinancialresultspleaserefertothechieffinancialofficer’sreportonpage4.

Current management has been in place since 1 April 2005. In the past eight years the group has developed into adiversifiedinvestmentholdingcompanywithastrongbalancesheetandaresilientportfolio.

The investment portfolio report on page 12 gives a simpleoverview of the business and there is a more detailedorganogramonpage7.

We have also included an intrinsic value report for the firsttime,which is included in the chief financial officer’s report.Theintrinsicvaluereportaimstoshowthematerialinvestmentcomponents of the business and management’s valuationsthereof where they differ from the required accounting carryingvalues.

CLUB MYKONOS LANGEBAAN (PTY) LIMITED (“CML”)

CMLremains the largestsingle investment in thegroupandis in itself comprised of several distinct business areas as detailedbelow. It issituated inLangebaanwhich isclose toSaldanha Bay. The Saldanha Bay Industrial DevelopmentZone was officially launched by President Jacob Zuma on 31October2013.Accordingtothefeasibilitystudyconductedpriortothelaunch,thezonehasthepotentialtocreate12000newjobsintheareaandcouldattractforeigndirectinvestmentof R9.3 billion. The area is already developing rapidly and the excellent roads infrastructure and ancillary commercialactivity shouldprovideopportunities forClubMykonosoverthenextdecade.

ClubMykonosisnowfirmlyestablishedasoneofthefavouredfamilyholidaydestinationsinthecountry.Theresorthasbeenawardeda4-stargradingbytheTourismGradingCouncilofSouthAfricaandhasreceivedindustryawardsandrecognitionas one of the top resorts in South Africa. Occupancies are

among the highest in the country and the infrastructure iscontinually being improved. The most recent project is thecomplete redesign of the Club Mykonos reception area tocreate a contemporary check-in area of the highest quality.BrandloyaltytoClubMykonosisveryhighandmostvisitorsarerepeatcustomers.

Mykonos Casino

The casino is operated by Tsogo Sun Holdings Limited.Althoughitoperatesinaseparateareaoftheresort,itformsan importantcomponentof theholidayexperience forsomeand provides a gaming option for those guests who enjoythe activity. The casino generates stable income for the CML group. For the current financial period the casino’scontributiontogroupprofitincreasedby24%toR9.9million(2012:R8.0million).

The Marina and Boatyard

The Marina continues to be a very sought after yachtingcentre and berthing facilities are in high demand. SaldanhaBay is gaining in popularity as a yachting destination dueto ideal sailing conditions and pressure on facilities in Cape Town. The most popular event at the Marina is theMykonosOffshoreregattawhichisthesignatureyachtraceoftheRoyalCapeYachtClubandisthebiggestkeelboatraceinSouthAfrica.In2013themarinahostedtheAfricanOptimistSailingChampionshipswhichwasthebiggesteventofitskindheldtodate.Thecontinuedinvestmentinthemarinahasbeenwelljustifiedanditwillremainakeyassetoftheresort.

TheBoatyard,which isaboatandgeneralstoragefacility isnowestablishedasthefinestfacilityofitskindinthecountry.The construction of the final phase is underway and newgarages are built in line with demand. When complete thefacilitywillinclude360boatgarages.TheBoatyardalsorunsaretailfacilityandoffersboating-relatedrepairsandservices.A key attraction of the facility is the convenienceoffered toboatingenthusiastswhohavetheirvaluableassetswellcaredforandreadytouseandonthewaterwhenrequired.

Rental of Commercial and Holiday Properties

CML owns commercial properties that house restaurants,resort services and conference facilities. These commercialassetsare leasedout tooperatorswhoworkwith the resorttocreateattractivebusinesseswhichcaterforholiday-makersandthegrowinglocalmarket.

Therefurbishmentsofthecommercialareas,whichtookplacein 2012 have been very well received and the restaurants,conferenceandentertainmentareasaregrowinginpopularity.

These properties generate consistent and growing rentalincomeforthegroupaswellasgoodprofitsfortheoperators.

Recent expansions include two supervised dedicatedchildren’sfacilitiesfortoddlersandteenagersandanon-sitefullservicelaundromat.

The bulk of the resort accommodation is owned by thirdparties, including a large timeshare component which hasthe advantage of generating constant foot traffic on theresort.CMLownsafewrentalpropertieswhicharerentedto holiday-makersbutthisisnotamaterialcomponentofincome.

Development Opportunities

Themajorfuturepotentialoftheresortliesintheundevelopedlandareas.ClubMykonosResorthas362completedresidentialunitscalled“kalivas”.Theseunitsaremainlyownedbythirdpartiesandnotbythedevelopmentcompany.Thesearenotconventional hotel rooms but include large bedrooms withfully-fittedkitchensandlivingareassuitableforfamilies.Theyofferahighqualitybutcost-effectivefamilyholidayoptionforpeoplewhoenjoyacoastalresortexperience.

There is furthercapacityon the resort todevelopup to500further residential units. The remaining zoned developmentland is in prime areas on or close to the water and hasexcellent potential for development. The market for coastalleisure properties has been subdued since 2008 but there aredefinitesignsofan improvementontheWestCoastandtownplannersandarchitectshavebeenengagedtodrawupvarious development options. No new projects have beeninitiatedtodatebutthereispotentialforthelaunchofanicheproductin2014.

ARBITRAGE PROPERTY FUND (PTY) LIMITED (“ARBITRAGE”)

Arbitrage is now a 67%-held subsidiary as detailed in thechieffinancialofficer’sreport.Arbitrage,whichisaloanstockcompany specialising in commercial and industrial property,had an active and successful year. Agreements for the saleoftworetailshoppingcentre investments inRustenburgandPretoria were concluded during the year. The sales wereopportunisticandbasedonourassessmentof theability toaddfurthervaluetothoseinvestments.Arbitragecontributedasubstantialportionofthecurrentyear’sprofitsforthegroup,howeverthisperformanceisunlikelytoberepeatednextyearduetothenatureofthepropertyinvestmentcycle.

Thesizeoftheportfoliohasbeentemporarilyreducedbytheabovementioned sales andArbitrage has negligible gearing.We remain committed to this investment and Arbitrage isexpectedtogrowsubstantiallyinthefuture.

RESI INVESTMENT GROUP (“RESI”)

Dealflowinthebuy-to-letsegmentoftheresidentialpropertymarket continues to be strong. Several acquisitions wereconcluded in the current year and further acquisitions arein the advanced stages of negotiation. AlthoughResi has atradingportfoliowhichgeneratesconsistentprofitsandhelpstofundthebusiness,itsmainaimistobuildalargeportfolioofhighquality rentalstock.Theportfolioremainsfocused intheWesternCapealthoughopportunitiesfurtherafieldwillbeconsidered if they are large and attractive enough to justifythe investment.Resi’sacquisitionstrategyistofocusonthemarket segments above affordable housing in sought afterresidentialneighbourhoods.ThismarketnicheismanagementintensiveandResihastheskillstoprovideahighlydesirableproductatacompetitivemarketrental.

OTHER INVESTMENTS

Trematonhasactivetradingand investmentportfolioswhichfocusonbothlistedandunlistedcompaniesandholdsminoritystakes in a varietyof suchcompanies from time to time.Atyear-end the investment and tradingportfolios amounted toR19million.

Other investmentsalsoincludeproperty jointventureswhicharenotcurrentlymaterialtothegroup.

Trematon owns 49% of Cloudberry Investments 18 (Pty)LimitedwhichisaBEEcompanythatinvestsinlistedshares.Atyear-endCloudberryowned18millionsharesinMazorGroupLimitedand6.3millionshares inGrandParade InvestmentsLimited.

PROSPECTS

Thebulkoftheprofitsearnedinthe2013financialyearwereattributable to the mark-to-market of investment propertieswhereagreementsforsalewereconcludedaswellasfairvalueadjustments of the remaining investment properties. Due tothenatureofthepropertyinvestmentcycle,thisisunlikelytoberepeatedinthe2014financialyear.AllofthebusinessesinwhichTrematonhasinvestedarewellfinancedandhavegoodgrowthpotential.Trematonhasawell-positionedportfolioofexistinginvestmentsandsufficientbalancesheetcapacitytomakematerialnewinvestmentsshouldtheopportunityarise.

DIVIDENDS

The board has declared a dividend of 3.25 cents per sharewhichisanincreaseof30%ontheprioryear.

MONTY KAPLAN ARNOLD SHAPIRO Chairman ChiefExecutiveOfficer




CHIEF FINANCIAL OFFICER’S REPORT

170% 23% 30%EARNINGS PER SHARE

10%HEADLINE EARNINGS

PER SHARENET ASSET VALUE

PER SHAREFINAL ORDINARY DIVIDEND OF 3.25 CENTS PER SHARE


OVERVIEW

DuringtheyearTrematonacquiredacontrollinginterestinbothArbitragePropertyFund(Pty)LimitedandTheResiInvestmentGroup. These investments were previously accounted for asjointventuresandwerethereforeequityaccountedinthegroupresults.Thechangeincontrolhasresultedinbothinvestmentsbeingconsolidated into theTrematonGroupatyear-endwiththe assets, liabilities, incomeandexpensesof the respectiveinvestment now being included in the group statement offinancialpositionandstatementofcomprehensiveincome.Theconsolidationhasresultedinanincreaseininvestmentproperty,inventoryandloanspayableinthegroupaccounts.

Trematon increased its investment inArbitragebypurchasingan additional 17% for a cash consideration of R4.2 millionwhichincludedsharesandloanaccounts.

TrematonhasappointedtwooutofthethreedirectorsofResiwhich has resulted in Trematon consolidating the investmentfrom1March2013.ItsinvestmentinResiremainsat50%.

RESULTSThe groupmade a profit for the year of R51.5million (2012:R18.9 million) which translates into earnings per share of29.2 cents (2012: 10.8 cents). Themain contributions to theincreasedprofitaretheincreaseinequityaccountedearningsfromassociatesandjointventuresduetofairvalueadjustmentsoninvestmentpropertieswithintheseentitiesandanincreaseinearningsfromtheMykonosCasino.

Operatingprofitincreasedasaresultofincreasedrentalincomeandpropertysalesaswellasfairvalueadjustmentsonheld-for-tradinginvestmentsandinvestmentproperties.Thegroupalsorealiseda losson thesettlementofanoptionwrittenagainstthegroupsholdingsinClubMykonosLangebaan(Pty)Limited(“CML”), together with losses realised on held-for-trading-investments.

NET ASSET VALUE

Thegroup’snetassetvalueincreasedby28centspershareto149centspershare(2012:121centspershare).

Themajorreasonsfortheincreaseinnetassetsvaluewerefairvalueadjustmentsoninvestmentpropertiesandinventoryheldbyjointventuresthatarenowsubsidiaries.TheseadjustmentswereaccountedforintermsofIFRS3–BusinessCombinations,whichareconsolidatedaspartofthegroup.Equityaccountedearnings also contributed to the increase in net asset value.Saleagreementsinrespectoftwoinvestmentpropertieswereconcludedduringtheyearunderreviewwithtransferscheduledtotakeplacesubsequenttoyear-end.Theinvestmentpropertieshavebeenclassifiedattheirfairmarketvalueandaredisclosed

asnon-currentassetsheld-for-sale.Thisfairvalueadjustmentalsocontributedtotheincreaseinnetassetvalue.

INDIVIDUAL INVESTMENTS

SUBSIDIARIES

Club Mykonos Langebaan (Pty) Limited (100%)

CML’s profit for the year increased from R7.5 million to R28.2million. Themain contributors to the large increase inprofitsweretherevaluationofinvestmentpropertyanddeferredtaxassetthatwasrecognisedinthecurrentyear.

Revenue from resort operations increased due to increasedrentalincomefromtheMykonosBoatyardandMykonosMarinawhich both continue to meet expectations. This is the firstfull yearof rental income from theadditional jetties thatwereconstructedatthemarinaaswellasafullyear’soperationsfortheboatyard.

Thecasinocontinuestoperformwell,generatingR9.9million(2012: R8.0 million) equity accounted profits for the group.DividendreceivedfromthecasinofortheyearwasR8.9million(2012:R4.5million).

ThecallandputoptionissuedbyTrematonintheprioryearinrespectof10%ofitsshareholdinginCMLwasexercisedbytheholdersduringthecurrentyear.ThisresultedinarealisedlossofR10.4million.Thereisnofurtherexposureinthisregard.

Arbitrage Property Fund (Pty) Limited (“Arbitrage”) (67%)

As mentioned above, Trematon increased its holdings inArbitrage. This resulted in Arbitrage becoming a subsidiaryofthegroupfrom31March2013.Arbitrageholds investmentproperties in the commercial, industrial and retail sectors.ThesepropertiescontinuetogeneratestrongyieldsandhavecontributedR19.1milliontoequityaccountedearningfromthebeginningoftheyeartothedateofchangeincontrol.Duringthe yearArbitrage concluded agreements for the sale of twoinvestmentpropertiesforatotalconsiderationofR145.4millionwith a realised profit of R40.7 million. These properties aredisclosed as non-current assets held-for-sale. After the saleof theseproperties,Arbitragewill holdR72.9millionworthofinvestmentproperty.

Resi Investment Group (“Resi”) (50%)

ThisisthefirstfullyearoftradingforResi,whichfocusesonresidentialdevelopments.Thegrouphasperformedwelloverthe past year and has met all expectations. As mentionedabove, Trematon increased its board control over Resi,whichconsistsofbothcompaniesandtrusts,This results inResibecomingasubsidiaryoftheTrematongroup.Resihas

managedtotakeadvantageoffavourabletradingopportunitiesduring the yearwhich have generatedR1.7million to equityaccountedearningstothedateofchangeincontrol.TheGroupcurrentlyholdsproperties,forbothtradingandasinvestments,tothevalueofR44.8million.Thereareacquisitionscurrentlyintheprocessofregistrationandthisfigureisexpectedtogrowsignificantlyovertime.

JOINT VENTURES

Stalagmite Property Investments (Pty) Limited (“Stalagmite”) (50%)

There has been no activity in the investment in Stalagmiteduringtheyear.Thecompanyowns land inan industrialparksituatedadjacent to therouteof theproposedN2highway intheWesternCape.There isnoexternaldebt in thecompany.The company contributed an immaterial loss to the equityaccountedearningsofthegroup.

The Vredenburg Property Trust (“VPT”) (50%)

TheVPTisajointventureofwhichArbitrageowns50%.VPTownstheVredenburgMall inVredenburg,WesternCape.ThispropertyhasproventobeapositiveinvestmentforthegroupandhascontributedR6.5milliontoArbitrage’sequityaccountedearnings.

The Woodstock Hub (Pty) Limited (“The Woodstock Hub”) (50%)

The Woodstock Hub is a joint venture of which Resi owns50%. This newly formed company has purchased a semi-completed property in Woodstock, Western Cape. Thepropertywastransferredafteryear-end.TheWoodstockHubplanstodeveloptheproperty intoaresidentialproperty inafastgrowingareaontheoutskirtsofCapeTown.Thecompanycontributed an immaterial loss to the equity accountedearningsofthegroup.

OTHER INVESTMENTS

Cloudberry Investments 18 (Pty) Limited (“Cloudberry”) (49%)

Thegroup’sinvestmentinCloudberryincreasedbyR3.4millionwhichisreflectedasareversaloftheprovisionforimpairmentpreviouslyraisedagainsttheloantoCloudberry.ThevalueoftheinvestmentinCloudberryisdirectlylinkedtoitsnetassetvaluewhichhasimprovedduringtheyearasaresultofanincreaseinthevalueofthecompany’sinvestmentsinlistedshares,beingMazorGroupLimitedandGrandParadeInvestmentsLimited.

The group maintains investments in various JSE-listedcompanies for both long-term and short-term tradingopportunities. These investments contributed R2.0 million individendrevenuefortheyear.Atyear-endthemarketvalueoftheseinvestmentswasR19.0million.

INTRINSIC VALUE REPORT

An intrinsic value report has been prepared to improveshareholdercommunication.Thegroup’sfinancialresultshavebeenpreparedintermsoftherequiredIFRSstandards,whichinsomecasesdoesnotallowforcertaininvestmentstobeshownattheirmarketvalues,suchasinvestmentsinassociatesandjointventureswhicharerecordedatcostplusitsshareofpostacquisitionreserveslessdistributionsreceived.


Trematon owns 30% of the Mykonos Casino, which has 320 slot machines and 6 gaming tables. The casino is popular with both local residents and holiday-makers.



CHIEF FINANCIAL OFFICER’S REPORT

Theintrinsicnetassetvalueofthegroupincludesvaluationsofallinvestmentcategories.

Thesevaluationsareeitherbasedontheirlistedmarketvalue,externalprofessionalvaluersordirectors’valuations.Thefollowingfactorsaretakenintoaccountindeterminingthedirectors’valuationsofvariousassets/investments:

• Marketvalueandearningsyieldofsimilarcompanies/operations,takingintoaccounttheearnings,riskandtradeabilitythereof

• Currentmarketpricesrealisedforsimilarorlikeassets

• Earningsyieldsandtheunderlyinggrowthpotential

31 August 2013

Book value Intrinsic value Note

Listedshares 18934609 18934609 1 CloudberryInvestments18(Pty)Limited 17585862 17585862 2 StalagmitePropertyInvestments(Pty)Limited 922162 7500000 3 ClubMykonosLangebaanGroup 149996067 257638526 4 ArbitragePropertyFund(Pty)Limited 218276312 218276312 3 Commercial property ResiInvestmentGroup 44799978 44799978 3Residentialproperty Cashonhand 34680035 34680035 5

Otherassets 27959862 27959862 5 Totalassets 513154887 627375184 Liabilities (230305874) (230305874) 5Non-controllinginterests (19554655) (19554655) 5 Netassets(attributabletoequityholders) 263294358 377514655 Intrinsicnetassetvaluepershare 1.49 2.14

Note:

1 Valuationbasedonquotedmarketpricesatyear-end.

2 Valuationbasedonnetassetvalueofcompanyusingquotedmarketpricesatyear-end,lessdebtinthecompany.

3 Valuationbasedondirectorsvaluationtakingintoaccountcurrentmarketpricesforsimilarorlikeassets.

4 Valuationoflandandpropertybasedonqualifiedprofessionalexternalvaluersreporttakingintoaccountcurrentmarketpricesoflikeorsimilarassetsaswellastheearnings,riskandtradeabilitythereof.

Valuationofthemarinawasperformedbythedirectorstakingintoaccountyieldgeneratedbytheassetsaswellassimilarorlikeassets.

Valuationofcasinoassetswasperformedbythedirectorstakingintoaccountearningsanddividendyieldsonsimilarorlikeindustries.

5 Marketvalueequalsbookvalue.

TREMATON CAPITAL INVESTMENTS LIMITED

100%

100%100%

49%50%

JOINT VENTURE

50%JOINT VENTURE

50%JOINT VENTURE

50%SUBSIDIARY

TREMTRADE (PTY) LIMITED TREMGROWTH (PTY) LIMITED

CLUB MYKONOS LANGEBAAN (PTY) LIMITED

STALAGMITE PROPERTY INVESTMENTS (PTY) LIMITED

CLOUDBERRY INVESTMENTS 18 (PTY) LIMITED

WEST COAST LEISURE (PTY) LIMITED

THE WOODSTOCK HUB (PTY) LIMITED

67%

ARBITRAGE PROPERTY FUND (PTY) LIMITED

VREDENBURG PROPERTY TRUST

100%

RESI INVESTMENT TRUST

LION PROPERTY INVESTMENT TRUST

100% 100%

TREMPROP (PTY) LIMITED

30%ASSOCIATE

WEST COAST HOLIDAY LIFESTYLES

(PTY) LIMITED

CLUB MYKONOSEXECUTIVE SALES

(PTY) LIMITED

CLUB MYKONOS LANGEBAAN RESORT

MANAGERS (PTY) LIMITED

100% 100%

6TREMATON І Integrated Annual Report 2013

ARTHUR WINKLER ChiefFinancialOfficer

SUBSIDIARY


COMPANY STRUCTURE



DIRECTORATE

Directorate from left to right:

Arnold Shapiro –ChiefExecutiveOfficer(ExecutiveDirector)BBusSci(FinanceHons.)

ArnoldhasbeentheChiefExecutiveOfficerofTrematonforthepast8years.Priortothisheoccupiedseniormanagementpositionsintheassetmanagementindustryincludinganalysis,portfoliomanagementandgeneralmanagement.HeiscurrentlyaDirectorofvariouscompaniesintheTrematonGroup.

Jonathan Fisher –(IndependentNon-executiveDirector)BCom

JonathanisaseniorCorporateFinanceExecutiveatBridgeCapitalwherehehasbeeninvolvedinnumeroustransactionsacrossvarioussectors.JonathanhasalsoperformedtheroleofChiefOperationsOfficerofmediacompanyMoneywebHoldingsandspentfiveyearsatDimensionDatainvariousroles.

Adriaan Murray Louw –(IndependentNon-executiveDirector)MurrayisanindependentMerchantBankerwithextensivecorporatefinanceexperiencebothlocallyandabroad.HeiscurrentlytheChairmanofPrescientLimited.

Monty Kaplan–(IndependentNon-executiveChairman)

CA(SA)

MontyisapreviousDeputyChairmanandChiefExecutiveOfficerofCapeofGoodHopeBankLimitedandpreviouslyaDirectorofSpearheadPropertyGroupLimitedand IngenuityProperty InvestmentsLimited.He is currently aNon-executiveDirectorofPrescientLimitedandtheNon-executiveChairmanofMazorGroupLimited.

Directorate from left to right:

Rudi Stumpf –(Non-executiveDirector)FIA

Rudi isaqualifiedactuaryandspentsixyearsatSanlaminvariouscapacitiesandwasChiefExecutiveOfficerofCitadel from 1998 to 2002. Since 2003, he has been a private equity investor engaged in awide variety of transactions.He is currently a Non-executiveDirectorofExcellerateLimited.

Allan Groll–(ExecutiveDirector)AllanhasbeenanactiveparticipantintheSouthAfricanpropertyandequitymarketsformorethan20years.Hewaspreviously aDirectorofSpearheadPropertyGroupLimited, IngenuityProperty InvestmentsLimitedandWooltruLimited.He iscurrentlya Non-executiveDirectorofMazorGroupLimitedandaDirectorofvariouscompaniesintheTrematonGroup.

Arthur Winkler–ChiefFinancialOfficer(ExecutiveDirector)BCom,CA(SA)

ArthurqualifiedasaCharteredAccountanthavinggraduatedfromtheUniversityofCapeTown.HecompletedhisarticlesatMooresRowlandwhereheremainedasanAuditManageruntil joiningWooltruLimitedasCompanySecretary.He joinedtheTrematonGroupin2008.HeiscurrentlyaDirectorofvariouscompaniesintheTrematonGroup.

Shiree Litten–(CompanySecretary)

BCom(Hons)

ShireehasbeenassociatedwithTrematonsince2005.ShehasfulfilledtheroleofAccountantandCompanySecretaryforthepastfewyearsandwaspreviouslyaDirectorofthegroup.


11TremaTon І Integrated Annual Report 2013TREMATON І Integrated Annual Report 2013



Club Mykonos Langebaan is in Saldanha Bay and a short distance from the Langebaan Lagoon. It will have storage facilities for 360 boats and has jetty berthing for a further 182 boats. It is a popular centre for yachting,

boating and water based recreational activities.



ClubMykonosLangebaan(Pty)LimitedownsresidentialandcommercialdevelopedandundevelopedlandaswellasinvestmentpropertiessituatedattheClubMykonosResort inLangebaan.

ThecompanyalsoownsandmanagestheMykonosmarinaaswellastheBoatyardstoragefacility.

www.clubmykonos.co.za

100% 30% 67%ArbitragePropertyFund(Pty)LimitedprimarilyfocusesontheSouthAfricancommercial,retailandindustrialsector,specificallyinthesegmentsofthemarketwheremanagementbelievesthereispotentialforincrementalcapitalgrowth,togetherwithincomegeneration.

www.arbitrageco.co.za

TheMykonosCasinoisheldthroughour100%investmentinClubMykonosLangebaan(Pty)Limited.ThecasinoissituatedattheClubMykonosResortinLangebaan.ThecasinoismanagedbyTsogoSunHoldingsLimitedwhoowntheremaining70%

www.casinomykonos.co.za

49% 50%50%StalagmitePropertyInvestments (Pty)LimitedisajointventurewithGatewayPropertyInvestments (Pty)LimitedandcomprisesanindustrialparkinaprimelocationintheStrand.78%oftheparkhasbeensoldandStalagmiteretainsownershipof 22000m²ofprimeindustrialland.

ResiInvestmentGroupfocusesprimarilyonhighvalueresidentialdevelopments.Theinvestmentaimstogeneratelong-termcapitalgrowthtogetherwithincomegeneration.

CloudberryInvestments18 (Pty)Limitedisablack-controlledinvestmentcompanywhichholds14.8%ofMazorGroupLimited,aJSE-listedcompanythatisaleadingsupplieroffabricatedsteelandaluminiumproductsandglass.ItalsoholdsinvestmentsinGrandParadeInvestmentsLimited.

www.mazor.co.za www.grandparade.co.za

INVESTMENT PORTFOLIO OVERVIEW

CLUB MYKONOSLANGEBAAN (PTY) LIMITED

WEST COAST LEISURE (PTY) LIMITED

(MYKONOS CASINO)

ARBITRAGE PROPERTY FUND

(PTY) LIMITED

STALAGMITE PROPERTY

INVESTMENTS (PTY) LIMITED

CLOUDBERRY INVESTMENTS 18

(PTY) LIMITED

RESI INVESTMENT

GROUP



FIVE-YEAR REVIEW

2013 2012 2011 2010 2009

Operating results

Revenue 34 328 803 24 804 600 19 921 784 6 876 635 42 626 087

Profit/(loss)beforetax 49 735 399 22 179 727 15 638 275 677 896 (3699599)

Earnings/(loss)attributabletoshareholders 51 498 535 18 900 884 14 756 471 (7132172) (2280010)

Headlineearningsattributabletoshareholders 13 315 970 11 829 368 5 412 521 7 540 892 7 865 457

Statement of financial position summary

Non-currentassets 236 885 690 159 315 995 154 109 670 178 870 995 257 543 170

Currentassets 129 866 565 96 679 433 93 709 619 101 280 446 99 360 832

Non-currentassetsheld-for-sale 146 402 632 – – – –

Totalassets 513 154 887 255 995 428 247 819 289 280 151 441 356 904 002

Non-currentliabilities 188 209 620 11 423 340 4 771 195 4 429 034 4 385 354

Currentliabilities 42 096 254 30 356 286 43 878 125 42 215 844 115 793 486

Totalliabilities 230 305 874 41 779 626 48 649 320 46 644 878 120 178 840

Shareholders’equity 263 294 358 214 758 171 188 461 258 134 768 351 141 248 590

Non-controllinginterest 19 554 655 – 10 708 711 98 738 212 95 476 572

Totalequity 282 849 013 214 758 171 199 169 969 233 506 563 236 725 162

Statistics

Numberofsharesinissue 176 540 271 177 108 052 173 821 416 174 872 545 174 872 545

Netassetvaluepershare(cents) 149 121 108 77 81

Earnings/(loss)pershare(cents) 29.2 10.8 8.5 (4.1) (1.3)

Headlineearningspershare(cents) 7.5 6.8 3.1 4.3 4.5

Dividendspershare(cents) 2.5 2.0 1.5 – –


Marina terrace at Club Mykonos



CORPORATE GOVERNANCE REVIEW

INTRODUCTION Theboardof directors continue to subscribe to the values ofgoodcorporategovernanceandarecommittedtocarryingonthebusinessofthecompanywithintegrityandfairnessandinaccordancewiththeprinciplesofsoundcorporategovernanceascontainedintheKingCodeofGovernanceforSouthAfrica2009(“KingIII”).Whiletheboardisoftheopinionthatthegroupcomplies in all material respects with the substance of theprinciplesascontainedinKingIII,wherespecificprincipleshavenotbeenapplied,explanationsforthesearecontainedwithintheannualreport.

BOARD COMPOSITION, STRUCTURE AND RESPONSIBILITIESThe board comprised of seven directors, Messrs JP Fisher, A Groll, M Kaplan, AM Louw, AJ Shapiro, R Stumpf and AL Winkler. Messrs A Groll, AJ Shapiro and AL Winkler areexecutive directors, all other directors are non-executivedirectors. Messrs JP Fisher, M Kaplan and AM Louw areindependentdirectors.

Directorsarerequiredtoobservethehighestethicalstandardsensuring thatbusinesspracticesareconductedprofessionallyandbeyondreproach

There isapolicydetailing theprocedures forappointments totheboard,whichare formaland transparent,andamatter fortheboardasawhole.Duetothesizeofthecompany,thereisnoseparatenominationcommittee.Thisfunctionisfulfilledbytheboardasawholeasandwhentheneedarises.Theproceduresfortheappointmentofdirectorsincludesthereviewofcurriculumvitaesandinterviewsbydirectors.

Thereisacleardivisionofresponsibilityatboardleveltoensureabalanceofpowerandauthoritytoensurethatnooneindividualhasunfetteredpowerofdecision-making.

The board is responsible for identifying and managinginvestments, which will provide above average returns toshareholders.

The Chairman, M Kaplan, is responsible for ensuring theeffectivenessofgovernancepracticeswithinthegroup.Particularareas of responsibility for the Chairman include guidanceregarding strategic planning, relationships with principals andcorporaterelations.

Thechiefexecutiveofficer,chieffinancialofficerandMrAGrollare full-time employees of the company. There are no formalemploymentorservicecontracts.

The remuneration of directors is disclosed in note 25 of thisintegratedannualreport.

CHANGES TO THE BOARD OF DIRECTORSTherehavebeennochanges to theboardofdirectorsduringtheyear.

BOARD FUNCTIONINGFourboardmeetings,twoauditandriskmanagementcommitteemeetings, one social and ethics committee meeting and oneremuneration committee meeting were held during the year.Investment committee meetings are held as and when theyare required. (For a list of members, see general information

on page 1). All meetings were convened timeously by formalnotice incorporating a detailed agenda supported by relevantwrittenproposalsanddetailedreports.Betweensuchmeetingsa number of decisions were taken by written resolution asprovidedforinthecompany’sMemorandumofIncorporation.

Theboardevaluatestheeffectivenessofthecommitteesonanongoingbasis.Boardmembershavereadyanddirectaccesstothecompanysecretaryinrelationtotheaffairsofthecompanyandareentitledtoobtainindependentprofessionaladviceregardingcompanymatters at the company’s expense. Allmembers oftheboardareexpectedtocontributetoensuringthatthegroupmaintainshighstandardsofcorporategovernance.Onrequest,boardmembershaveaccesstocompanyinformation,records,documentsandproperty.

AUDIT AND RISK COMMITTEETheaudit and riskcommittee,whichcomprises threesuitablyqualified independent non-executive directors being MessrsJPFisher,MKaplanandAMLouw,isresponsibleforensuringthat the group maintains adequate accounting records andfunctionally effective financial reporting and internal controlsystemsandensurescompliance.Italsoensuresthatpublishedfinancialreportscomplywithrelevantlegislation,regulationandaccountingpracticeandthatgroupassetsaresafeguarded.Thechairmanoftheboard,MrMKaplan,iscurrentlyamemberoftheauditandriskcommittee.Tothisextent,theboardisoftheopinionthatgivenMrMKaplan’sextensiveexperience,havingservedon audit and risk committees of other companies andtaking into account the current size of Trematon’s operations,thatMrMKaplanwillcontinueservingasChairmanoftheboardandamemberoftheauditandriskcommittee.

Theauditandriskcommitteesetstheprinciplesforrecommendingtheuseofexternalauditors fornon-auditservices.Dueto thesizeoftheexecutivemanagementstructureitisnotconsiderednecessary to have an internal audit function. The audit andriskcommittee intends to review this functionduring theyear. Thereportof theauditandriskcommittee for theyearended 31August2013issetoutonpage23.

INVESTMENT COMMITTEEThe investment committee, which comprises two suitablyqualified independent non-executive directors and threeexecutivedirectorsbeingMessrsMKaplan,JPFisher,AGroll,AJShapiroandALWinkler is responsible fordeterminingandrecommending to theboard theoverall investmentstrategyofthegroup.Itreviewsinvestmentproposalsaspresentedbytheexecutivedirectorsandistaskedtoimplementthesewithinthemandatesprescribedbytheboard.Theinvestmentcommittee’sauthority level is currently R75 million. Expenditure andinvestmentsabovethislevelrequireratificationbythefullboard.CapitalexpenditureuptoR25millionmaybeundertakenbytheexecutive directors.Meetings are held as andwhen required. Aminimumoftwonon-executivedirectorsmustbepresentatthemeeting.

REMUNERATION COMMITTEEThe remuneration committee, which comprises three suitablyqualified non-executive directors being Messrs M Kaplan, AM Louw and R Stumpf, is responsible for ensuring that thegroup’sremunerationpoliciesareappropriate.

REMUNERATION REPORTComposition of executive directors’ remunerationWhere the remuneration committee determines that thecomposition of the directors’ remuneration requires re-assessment,executivedirectors’salariesarereviewedannuallyby the remuneration committee and benchmarked againstexternalmarketdataconsideringthesizeandcomplexityofthegroup and its operations. Individual performance and overallresponsibilityarealsoconsidered.

Non-executive directors’ emolumentsWheretheremunerationcommitteefeelsthatitisnecessary,theremunerationandfeesofnon-executivedirectorsarereviewedannually toensure that they remaincompetitiveand that theyattractindividualsofappropriatereputationandexperiencetotheboard.Shareholdersarerequiredtoapprovetheremunerationofnon-executivedirectorsinadvanceatageneralmeetingofthecompany.

Prescribed officersTheboardiswhollyresponsiblefortheformulation,developmentandeffective implementationofgroupstrategy.Alloperationalstrategyimplementationandgeneralexecutivemanagementofthebusinessisdesignatedtotheexecutivedirectors.Assuch,intermsoftheCompaniesAct,theexecutivedirectorsoftheboardareidentifiedasprescribedofficersofthecompany.

Board committee feesTheremunerationofboardcommitteemembersisdeterminedbytheboardasprovidedforintheMemorandumofIncorporation.

Forthefinancialyearto31August2013,thefollowingratesoffeeswereapplicable:

BoardmeetingMembers:R123000perannum(Chairman:R272400perannum)

AuditandriskcommitteeMembers:R9800permeeting

Remuneration committeeMembers:R4800permeeting

Forthefinancialyearto31August2014,thefollowingratesoffeesareapplicableandhavebeenproposedtoshareholdersforapproval:

BoardmeetingMembers:R133000perannum(Chairman:R294000perannum)

AuditandriskcommitteeMembers:R10600permeeting

Remuneration committeeMembers:R5200permeeting

SOCIAL AND ETHICS COMMITTEE Thesocialandethicscommitteecomprisesthreedirectors,allofwhomarenon-executivedirectors.ThemembersareMessrsJPFisher,MKaplan,AMLouw.ThecommitteewillmonitorthefollowingfunctionsassetoutbytheCompaniesAct:

Social and economic development;

Corporatecitizenship;

Environment,healthandpublicsafety;

Consumerrelationships;and

Labourandemployment.

BOARD ATTENDANCE

Directors Number of meetings attended

MKaplan(Chairman) 4

JPFisher 4

A Groll 4

AMLouw 4

AJ Shapiro 4

R Stumpf 4

ALWinkler 4

AUDIT AND RISK COMMITTEE ATTENDANCE

Members Number of meetings attended

JPFisher(Chairman) 2

M Kaplan 2

AMLouw 2

REMUNERATION COMMITTEE ATTENDANCE


MKaplan(Chairman) 1

AMLouw 1

R Stumpf 1

SOCIAL AND ETHICS COMMITTEE ATTENDANCE


JPFisher(Chairman) 2

M Kaplan 2

AMLouw 2



EMPLOYMENT EqUITY REPORTTrematon’sabilitytobesustainableasacompanydependsonitsabilitytofind,retainanddevelopitsemployeesandthisremainsoneof themost important objectivesof thegroup. Thegroupcontinues to create a supportiveworkingenvironment inwhichemployeesaremotivatedtoengageandcontributetheirbesteffortstothegroup.

Thegroupendeavourstoattract,nurtureandretainsuitablyqualifiedemployees.

Managementiscommittedtoensuringthatthereisnounfairdiscriminationintheworkplace.Therewerenocomplaintsreportedorcomplaintsthatwereintheprocessofbeinginvestigatedinthereportingperiod.

Duringtheyearunderreviewthecategorisationofemployeesaccordingtotheirworkforceprofilewasasfollows:

Male Female

Occupational Levels A C W A C W TOTAL

ExecutiveDirectorsandtopmanagement 0 0 6 0 0 1 7

Middlemanagement 0 0 2 0 0 4 6

Skilledtechnicalworkers,juniormanagementandsupervisors 0 0 1 0 1 3 5

Semi-skilledanddiscretionarydecision-making 0 4 1 1 1 0 7

Total permanent 0 4 10 1 2 8 25

Temporaryemployees 0 0 0 0 1 0 1

Total temporary 0 0 0 0 1 0 1

Grand total 0 4 10 1 3 8 26

Key: A = African; C = Coloured; W = White

COMPANY SECRETARYThe company secretary performs the company secretarialfunction. Where necessary, external experts are consulted toensurecompliancewithrelevantlegislationandrulespertainingtothegroup’soperations.Theboardhasevaluatedandisoftheopinion,thatthecompanysecretary,MrsSALittenwhohasaBCom(Hons)degreehastherequisitecompetence,knowledgeandexperiencetocarryoutthedutiesofacompanysecretaryofapubliccompany,andintheperformanceofthosedutiesisabletomaintainanarm’slengthrelationshipwithothermembersoftheboard.Thisevaluationtooktheformofadiscussionduringameetingoftheboard,whichconsideredherperformancesince2005andher formalqualification.Theboard isof theopinionthat the company secretary has adequately and effectivelycarriedoutherroleandwherenecessary,consultedwithexternalexperts.

STAKEHOLDER COMMUNICATIONThe group strives in its communications with stakeholders,particularly the investment community, to present a balancedandunderstandableassessmentofthegroup’sposition.

Consequently,initsfinancialreporting,formalannouncements,media releases, annual meetings, presentations and dialoguewith analysts and institutional shareholders, the group’sobjectivesaretobeclear,open,promptandbalanced,andtobecommunicatedinsubstanceratherthaninform.

INTERNAL CONTROLThe group strives to maintain internal controls of a standardaimedatensuringthatthesystemsoffinancialreportingcontaincomplete, accurate and reliable information and safeguard

the group’s assets. The external auditors report to the auditcommittee and have ready access to the chairman of thatcommittee and the directors. Due to the limited number oftransactions, the group does not consider an internal auditfunctiontobenecessary.

Nothinghascometo theattentionof thedirectors tosuggestthattheaccountingrecordsandsystemsofinternalcontrolwerenot appropriate or satisfactory, neither has anymaterial loss,exposureormisstatementarisingfromamaterialbreakdowninthefunctioningofthesystemsofinternalcontroloraccountingbeen reported to the directors in respect of the period underreview.

RISK MANAGEMENTThegrouphasminimisedtheriskofanyexternaleventoccurringwhichwouldhaveasignificantimpactonthecontinuationofitsactivities.Ithasprocessesinplacewhichensurethatthegroupcouldcontinueoperationally,shouldsuchaneventoccur.

Thedirectorsareoftheviewthatall insurableriskshavebeenadequatelycovered.

DEALINGS IN COMPANY SHARESThegrouphasawrittenpolicyintermsofwhichdealingsinthecompany shares by directors and employees are prohibitedduringclosedperiodswhichcommenceon31Augustand28Februaryandendsafterthepublicannouncementofthegroup’sannualorinterimresults.

Dealingsbydirectorsinthecompany’ssharesarenotifiedtotheJSELimited inaccordancewith its requirements.SharesheldbydirectorsaredisclosedintheDirectors’Reportonpage26.

19

CORPORATE GOVERNANCE REVIEW

The Mykonos Offshore is the Royal Cape Yacht Club’s signature event. It is the largest keel boat race in South Africa and offers a sailing challenge for all classes of larger yachts.




Club Mykonos (www.clubmykonos.co.za) is a popular family resort situated 125 km from central Cape Town. The resort offers a variety of ownership and use options ranging from short stays to holiday homes. The property

has undergone extensive renovation over the past few years and offers a wide range of leisure activities. This photograph shows “little paradise beach” and the pool deck.20




Theauditcommitteeispleasedtopresentitsreport,asrequiredbytheCompaniesActofSouthAfrica.

ROLE OF THE COMMITTEEThe audit committee has an independent role with accountability to both the board and to shareholders. The committee’sresponsibilities include the statutory duties prescribed by the Companies Act, activities recommended by King III and theresponsibilitiesassignedbytheboard.

Thecommittee’smainresponsibilitiesareasfollows:

Integrated and financial reporting• Reviewtheannualfinancialstatements,interimreport,resultsannouncementandsummarisedintegratedfinancialinformation

andensurecompliancewithInternationalFinancialReportingStandardsandtheCompaniesAct

• Reviewandapprovetheappropriatenessofaccountingpolicies,disclosurepoliciesandtheeffectivenessofinternalfinancialcontrols

• RecommendtheIntegratedAnnualReporttotheboardforapproval

Finance function• Considertheexpertiseandexperienceofthechieffinancialofficer

• Considertheexpertise,experienceandresourcesofthegroup’sfinancefunction

External audit• Nominatetheexternalauditorforappointmentbytheshareholders

• Determineannuallythescopeofauditandnon-auditserviceswhichtheexternalauditorsmayprovidetothegroup

• Approvetheexternalauditplanandremunerationoftheexternalauditors

• Assesstheperformanceoftheexternalauditors

• Assessannuallytheindependenceoftheexternalauditors

Risk management• Ensurethatmanagement’sprocessesandproceduresareadequatetoidentify,assess,manageandmonitorenterprise-widerisks

General• Performotherfunctionsasdeterminedbytheboard

Theauditcommitteedischargesitsboardresponsibilitiesthroughmeetingsheldduringtheyear.Duringtheyear,twomeetingswereheld.

COMPOSITION OF THE COMMITTEETheauditandriskcommitteeconsistsofthreenon-executivedirectorswhoactindependentlyasdescribedinsection94oftheCompaniesAct.

InaccordancewiththerequirementsoftheCompaniesAct,membersoftheauditcommitteeareappointedannuallybytheboardfortheensuingfinancialyearandincompliancewithKingIIIareelectedbytheshareholdersattheannualgeneralmeeting.

Theexternalauditorshaveunrestrictedaccesstothecommitteeandallofitsmembersthroughouttheyear.

INDEPENDENCE OF EXTERNAL AUDITORSTheauditcommitteeissatisfiedastotheindependenceofthegroup’sexternalauditors,Mazarsandtherespectiveauditpartner.ThecommitteenominatesMazarsasexternalauditorfortheappointmentbyshareholdersattheannualgeneralmeeting.

FINANCE FUNCTIONTheauditcommitteehasconsideredandissatisfiedthatMrALWinklerhastheappropriateexpertiseandexperienceforhispositionaschieffinancialofficerofthegroup.Inaddition,thecommitteealsoconsideredtheexpertise,experienceandresourcesofthefinancefunctionasrequiredbytheKingIIIReportandissatisfiedwiththeexpertiseandexperienceofthegroup’sfinancefunctioningeneral.

APPROVAL OF THE AUDIT COMMITTEE REPORTThecommitteeconfirmsthatithasdischargeditsfunctionsasascribedtoitbytheCompaniesAct.

JP FISHERAudit Committee Chairman

11November2013

REPORT OF THE AUDIT AND RISK COMMITTEE


Club Mykonos Marina



TO THE SHAREHOLDERS OF TREMATON CAPITAL INVESTMENTS LIMITED We have audited the consolidated annual financial statements and separate annual financial statements of Trematon CapitalInvestmentsLimitedassetoutonpages23to87,whichcomprisetheconsolidatedandseparatestatementsoffinancialpositionasat31August2013,andtheconsolidatedandseparatestatementsofcomprehensiveincome,statementsofchangesinequitystatementsandcashflowsfortheyearthenended,andthenotes,comprisingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

DIRECTORS’ RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS Thecompany’sdirectorsareresponsibleforthepreparationandfairpresentationoftheseannualfinancialstatementsinaccordancewithInternationalFinancialReportingStandardsandtherequirementsoftheCompaniesActofSouthAfrica,andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationofannualfinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

AUDITOR’S RESPONSIBILITY Ourresponsibility istoexpressanopinionontheseannualfinancialstatementsbasedonouraudit.Weconductedouraudit inaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhethertheannualfinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheannualfinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementoftheannualfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationoftheannualfinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheannualfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OPINION Inouropinion, theseannualfinancialstatementspresent fairly, inallmaterial respects, theconsolidatedandseparatefinancialpositionofTrematonCapitalInvestmentsLimitedasat31August2013,anditsconsolidatedandseparatefinancialperformanceandcashflowsfortheyearthenended,inaccordancewithInternationalFinancialReportingStandards,andtherequirementsoftheCompaniesActofSouthAfrica.

OTHER REPORTSAspartofourauditoftheconsolidatedannualfinancialstatementsandseparateannualfinancialstatementsfortheyearended31August2013,wehavereadtheDirectors’Report,theReportoftheAuditandRiskCommittee,theDirectors’ResponsibilitiesandApproval,AnalysisofShareholdersandtheDeclarationbyCompanySecretaryforthepurposeofidentifyingwhethertherearematerialinconsistenciesbetweenthesereportsandtheauditedannualfinancialstatements.Thereportsaretheresponsibilityoftherespectivepreparers.Basedonourreadingofthereportswehavenotidentifiedmaterialinconsistenciesbetweenthesereportsandtheauditedannualfinancialstatements.However,wehavenotauditedthesereportsandaccordinglydonotexpressanopiniononthesereports.

MAZARSPartner:DuncanDollmanRegisteredAuditor

12November2013CapeTown

INDEPENDENT AUDITOR’S REPORT

Thedirectorsofthecompanyareresponsibleforthepreparationandfairpresentationofthegroupannualfinancialstatementsand annual financial statements of Trematon Capital Investments Limited, comprising the statements of financial position at 31August2013,andthestatementsofcomprehensiveincome,thestatementsofchangesinequityandstatementsofcashflowfortheyearthenended,andthenotestothefinancialstatements,whichincludeasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,andtheDirectors’Report,inaccordancewithInternationalFinancialReportingStandards,theJSELimitedListingsRequirementsandtherequirementsoftheCompaniesActofSouthAfrica.

Thedirectors’responsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthesefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Thedirectors’responsibilityalsoincludesmaintainingadequateaccountingrecordsandaneffectivesystemofriskmanagementaswellasthepreparationofthesupplementaryschedulesincludedinthesefinancialstatements.

Thedirectorshavemadeanassessmentofthegroupandthecompany’sabilitytocontinueasagoingconcernandthereisnoreasontobelievethebusinesseswillnotbegoingconcernsintheyearahead.

TheexternalauditorsareresponsibleforindependentlyauditingandreportingonthegroupannualfinancialstatementsandfinancialstatementsinconformitywithInternationalStandardsonAuditing.

APPROVAL OF THE GROUP ANNUAL FINANCIAL STATEMENTS AND SEPARATE PARENT ANNUAL FINANCIAL STATEMENTSThegroupannualfinancialstatementsandannualfinancialstatementsofTrematonCapitalInvestmentsLimitedwereapprovedbytheboardofdirectorson11November2013andaresignedontheirbehalfby:

M KAPLAN AJ SHAPIROChairman ChiefExecutiveOfficer

DIRECTORS’ RESPONSIBILITY AND APPROVAL

DECLARATION BY COMPANY SECRETARY

Inmycapacityascompanysecretary,Iherebyconfirm,intermsoftheCompaniesAct,2008,thatfortheyearended31August2013, thecompanyhas lodgedwiththeCompaniesandIntellectualPropertyCommissionallsuchreturnsasarerequiredbyapubliccompanyintermsofthisActandthatallsuchreturnsaretrue,correctanduptodate.

SA LITTENCompany Secretary

11November2013



Thedirectorssubmittheirreportfortheyearended31August2013.

1. CORPORATE INFORMATIONTrematonCapitalInvestmentsLimited(the“company”or“Trematon”)isacompanydomiciledinSouthAfrica.Theconsolidatedfinancialstatementsasatandfortheyearended31August2013comprisethecompanyanditssubsidiaries(togetherreferredtoasthe“group”andindividuallyas“groupentities”)andthegroup’sinterestinassociatesandjointlycontrolledentities.

2. REVIEW OF ACTIVITIESThegroupisaninvestmentgroupwithinvestments,subsidiaries,jointventuresandassociatesengagedprimarilyinproperty,leisureandgaming industries.Theprimaryaimof thegroup is togeneratesuperior risk-adjusted long-term returns for itsshareholders.ThegroupoperatesinSouthAfrica.

Theoperatingresultsandstateofaffairsofthegrouparefullysetoutintheattachedannualfinancialstatementsanddonot,inouropinion,requireanyfurthercomment.

3. DIRECTORS’ INTEREST IN SHARES AND CONVERTIBLE DEBENTURES Directors’ interest in shares

2013 2012

Direct Beneficial

Indirect Beneficial Total

DirectBeneficial

IndirectBeneficial Total

Executive

A Groll – 44 012 392 44 012 392 – 43 048 850 43 048 850

AJ Shapiro – 9 250 243 9 250 243 – 9 250 243 9 250 243

ALWinkler – – – 102 500 – 102 500

Non-executive

M Kaplan – 500 000 500 000 – 500 000 500 000

AMLouw – 343 626 343 626 – 343 626 343 626

R Stumpf – 10 399 808 10 399 808 – 10 399 808 10 399 808

JPFisher – – – – – –

Company Secretary

SA Litten – 25 000 25 000 – 25 000 25 000

– 64 531 069 64 531 069 102 500 63 567 527 63 670 027

Directors’ interest in convertible debentures:Theexecutivedirectorsandcompanysecretaryparticipateinashareschemebywayofconvertibledebenturesbeingissuedthatareconvertibletoordinarysharesafteraminimumperiodofthreeyears.

Balance at the

beginning of the year

Convertible debentures

issued


converted

Balance at the end of

the year

Executive

A Groll 5 000 000 500 000 – 5 500 000

AJ Shapiro 5 000 000 500 000 – 5 500 000

ALWinkler 1 500 000 150 000 – 1 650 000

Company Secretary

SA Litten 500 000 50 000 – 550 000

Total 12 000 000 1 200 000 – 13 200 000

Therehavebeennochangesinthedirectors’interestsinsharesand/orconvertibledebenturesbetween31August2013andthedateofthisreport.

DIRECTORS’ REPORT

4. ACCOUNTING POLICIESTheaccountingpolicieshavebeenappliedconsistentlytoallperiodspresentedintheseresults.

5. ISSUE OF SHARESTherewerenosharesissuedbythecompanyduringthecurrentyear(2012:3223278sharesissued).

6. BORROWING LIMITATIONSTheborrowingpowersofthecompanyareunlimitedintermsoftheMemorandumofIncorporation.

7. SPECIAL RESOLUTIONSAllthespecialresolutionsconsideredattheannualgeneralmeetingheldon30January2013asproposedintheannualreportforthe2012financialyearwerepassed.

8. DIVIDENDSThe dividend of R4.5 million (2.5 cents per share) which was declared on 1 November 2012 was paid to members on 11February2013(2012:R3.5million).

Secondary taxoncompanies (“STC”)creditsofR4.5millionwereused in thedividenddeclaredandpaidduring theyear. STCcreditsofR32.5millionremainedavailableforfutureutilisationafterthedeclarationofthisdividend.

On11November2013,subsequenttoyear-end,theboardofdirectorsdeclaredadividendof3.25centspershare.

Thedirectorshavereasonablyconcludedthatthecompanywillsatisfythesolvencyandliquiditytestimmediatelyafterthedividenddistribution.

Additionalinformationpertainingtothecashdividend:

Thefinalgrossdividenddeclaredof3.25centspersharewillbepaid from incomereserves.Thedividendwithholdingtax(“DWT”)rateis15%.ThecompanywillutiliseSTCcredits.TheSTCcreditsutilisedaspartofthisdividenddeclarationamounttoR5.8million,being3.25centspershareandconsequentlynoDWTispayablebyshareholderswhoarenormallynotexemptfromDWT.ThenetamountpayabletoshareholdersisR5.8million,being3.25centspershare,basedonthecurrentnumberof178095823sharesinissue.

STCcreditsofR26.7million,being15.0centspersharewillremainavailabletobesetoffagainstfuturedividends.

IncometaxreferencenumberofTrematonCapitalInvestmentsLimitedis9340/323/84/0.

Lastdatetotrade: Friday, 6December2013

Ex-date: Monday,9December2013

Recorddate: Friday, 13December2013

Paymentdate: Tuesday,17December2013

Share certificates may not be dematerialised or rematerialised between Monday, 9 December 2013 and Friday, 13December2013,bothdaysinclusive.

9. DIRECTORSThedirectorsofthecompanyduringtheyearandtothedateofthisreportareasfollows:

Name Classification

Executive directors

AJ Shapiro ChiefExecutiveOfficer

ALWinkler ChiefFinancialOfficer

A Groll

Non-executive directors

M Kaplan Independent Chairman

AMLouw Independent

JPFisher Independent

R Stumpf



10. SUBSEqUENT EVENTSSubsequenttoyear-end,thepropertiesreferredtoasHibernianTowers,situatedintheStrand,WesternCapewasacquiredatacostofR45.4million.ThisinvestmentwaspurchasedbyTheResiInvestmentGroupforthepurposeoftradingstock. Thisconsiderationwasfinancedbywayofbankdebt.

11. GOING CONCERNTheannualfinancialstatementscontainedinthisannualreporthavebeenpreparedonagoingconcernbasisasthedirectorshave every reason to believe that the company and the group have adequate resources to continue in operation for the yearahead.

12. AUDITORSMazarswill continue in office as external auditors of the company in accordancewith section 90 of theCompaniesAct, 71of2008.

CapeTown11November2013


DIRECTORS’ REPORT

Seafront Kalivas at Club Mykonos



Group Company

Note2013

R2012

R2013

R2012

RASSETSNon-current assetsProperty,plantandequipment 3 8 571 884 6 500 103 – –Investmentproperties 4.1 109 396 708 21 097 718 – –Investmentsinsubsidiaries 5 – – 20 120 Investments 6.1 16 380 058 16 120 058 – –Investmentsinjointventures 6.2 11 553 141 28 984 984 – –Investmentsinassociateentities 6.3 86 578 964 85 582 924 – –Loanstogroupcompanies 10 – – 23 512 500 20 000 000 Deferredtaxasset 7 4 404 935 1 572 577 – –

236 885 690 159 858 364 23 512 520 20 000 120 Current assetsInvestments 6.4 2 554 551 17 174 992 – –Loanreceivable 8 17 585 862 14 180 600 – –Tradeandotherreceivables 9 9 734 001 4 155 992 278 278 Loanstogroupcompanies 10 – – 94 858 911 94 564 465 Inventories 11 65 310 685 28 395 828 – –Cashandcashequivalents 12 34 680 035 32 769 871 63 123 60 414 Currenttaxassets 1 431 2 150 – –

129 866 565 96 679 433 94 922 312 94 625 157 Non-currentassetsheld-for-sale 4.2 146 402 632 – – –TOTAL ASSETS 513 154 887 256 537 797 118 434 832 114 625 277

EqUITY AND LIABILITIESEquitySharecapitalandsharepremium 13 209 259 060 209 259 060 209 259 060 209 259 060 Treasuryshares 13 (2 558 722) (1239057) – –Share-basedpaymentreserve 14 2 310 723 843 738 2 310 723 843 738 Convertibledebentures 15 – – 17 230 821 14 611 865 Fairvaluereserve 16 9 454 267 8 155 819 – –Accumulatedprofit/(loss) 44 829 030 (2261389) (116 608 425) (121156689)Total equity attributable to equity holders of the parent 263 294 358 214 758 171 112 192 179 103 557 974 Non-controlling interest 19 554 655 – – –

282 849 013 214 758 171 112 192 179 103 557 974 LIABILITIESNon-current liabilitiesLoanspayable 17 172 069 514 5 794 725 – –Convertibledebentures 15 – – 1 127 351 2 097 848 Deferredtaxliability 7 16 140 106 5 628 615 779 879 981 201

188 209 620 11 423 340 1 907 230 3 079 049 Current liabilitiesLoanspayable 17 8 663 628 884 220 – –Convertibledebentures 15 – – 1 657 932 1 406 436 Loanfromgroupcompanies 10 – – 2 667 581 5 203 052 Derivativeinstruments 18 – 1 372 819 – 1 372 819 Currenttaxliabilities 121 670 27 100 – –Tradeandotherpayables 19 33 310 956 28 072 147 9 910 5 947

42 096 254 30 356 286 4 335 423 7 988 254 Total liabilities 230 305 874 41 779 626 6 242 653 11 067 303 TOTAL EqUITY AND LIABILITIES 513 154 887 256 537 797 118 434 832 114 625 277

Netassetvaluepershare(basedonsharesinissueattheendoftheyear) 149 cents 121cents

STATEMENTS OF FINANCIAL POSITIONat 31 August 2013

Group Company

Note2013

R2012

R2013

R2012

RRevenue 20 34 328 803 24 804 600 19 768 488 11 744 528

Realisedprofitonavailable-for-saleinvestments 2 062 587 – – –Realisedlossonsettlementofderivativeinstrument (9 048 353) – (9 048 353) –Realised(loss)/profitonheld-for-tradinginvestments (3 742 625) 1 496 971 – –Realisedprofitonsaleofnon-currentassets 1 007 850 – – –Gainonchangeinshareholding 3 420 316 – – –Realiseprofitonsaleofassociate – 10 348 531 – –Total realised (loss)/profit (6 300 225) 11 845 502 (9 048 353) –

Fairvalueadjustmentonheld-for-tradinginvestments 4 474 412 (3052603) – –Fairvalueadjustmentonderivativeinstrument – (1372819) – (1372819)Fairvalueadjustmentoninvestmentproperties 18 730 171 – – –Fairvalueadjustmentonpreviouslyheldinvestmentinjointventure 3 457 008 – – –Reversalofimpairmentofloan 3 405 262 3 986 949 – –Total profit/(loss) from fair value adjustments 30 066 853 (438473) – (1372819)

Employeebenefits (11 070 025) (7370276) (1 466 985) (843738)Costofsalesofpropertyandland (7 535 123) (2552798) – –Otheroperatingexpenses (13 139 757) (10570504) (552 642) (634445)Operating profit 26 350 526 15 718 051 8 700 508 8 893 526 Financecosts 21 (7 091 840) (957989) (96 631) (179230)Profitfromequityaccountedinvestment (netoftax) 6.5 30 476 713 7 419 666 – –Profit before income tax 49 735 399 22 179 728 8 603 877 8 714 296 Income tax 22 4 130 901 (2936009) 396 783 197 454 Profit for the year 53 866 300 19 243 719 9 000 660 8 911 750

Other comprehensive incomeFairvaluegainonavailable-for-saleinvestments 4 068 361 1 508 000 – –Reclassificationadjustmentonsaleofavailable-for-saleinvestments (2 062 587) – – –Fairvaluegainonrevaluationofproperty,plantandequipment – 2 301 819 – –Taxeffectsonrevaluations (707 326) (953321) – –Other comprehensive income for the year 1 298 448 2 856 498 – –Total comprehensive income for the year 55 164 748 22 100 217 9 000 660 8 911 750

Profit attributable to:Equityholdersoftheparent 51 498 535 18 900 885 9 000 660 8 911 750 Non-controllinginterests 2 367 765 342 834 – –

53 866 300 19 243 719 9 000 660 8 911 750

Total comprehensive income attributable to:Equityholdersoftheparent 52 796 983 21 757 383 9 000 660 8 911 750 Non-controllinginterests 2 367 765 342 834 – –

55 164 748 22 100 217 9 000 660 8 911 750

Basicearningspershare 23 29.2 cents 10.8centsDilutedearningspershare 23 27.2 cents 10.4cents

STATEMENTS OF COMPREHENSIVE INCOMEfor the year ended 31 August 2013



Group

Share capital

R

Share premium

R

Total share

capitalR

Treasury shares

R

Share-based

payment reserve

R

Fair value

reserveR

Accumulated profit/(loss)

RTotal

R

Non-controlling

interestR

Total equity

R

Balanceat1September2011 1 748 726 201 547 269 203 295 995 (1276662) – 5 299 321 (18857396) 188 461 258 10 708 711 199 169 969

Totalcomprehensiveincomefortheyear – – – – – 2 856 498 18 900 884 21 757 382 342 834 22 100 216

Profitfortheyear – – – – – – 18 900 884 18 900 884 342 834 19 243 718

Fairvaluegainonavailable-for-saleinvestments – – – – – 1 508 000 – 1 508 000 – 1 508 000

Fairvaluegainonrevaluationofproperty,plantandequipment – – – – – 2 301 819 – 2 301 819 – 2 301 819

Taxeffectsonrevaluations – – – – – (953321) – (953321) – (953321)

Netsharesales – – – 37 605 – – – 37 605 – 37 605

Share-basedpayment – – – – 843 738 – – 843 738 – 843 738

Dividendspaid – – – – – – (3476428) (3476428) – (3476428)

Issueofordinarysharestoacquirebalanceofsharesinsubsidiary 32 232 5 930 833 5 963 065 – – – 1 171 551 7 134 616 (11051545) (3916929)

Balanceat31August2012 1 780 958 207 478 102 209 259 060 (1239057) 843 738 8 155 819 (2261389) 214 758 171 – 214 758 171

Balanceat1September2012 1 780 958 207 478 102 209 259 060 (1 239 057) 843 738 8 155 819 (2 261 389) 214 758 171 – 214 758 171

Totalcomprehensiveincomefortheyear – – – – – 1 298 448 51 498 535 52 796 983 2 367 765 55 164 748

Profitfortheyear – – – – – – 51 498 535 51 498 535 2 367 765 53 866 300

Fairvaluegainonavailable-for-saleinvestments – – – – – 4 068 361 – 4 068 361 – 4 068 361

Reclassificationadjustmentonsaleofavailable-for-saleinvestments – – – – – (2 062 587) – (2 062 587) – (2 062 587)

Taxeffectsonrevaluations – – – – – (707 326) – (707 326) – (707 326)

Sharepurchases – – – (1 319 665) – – – (1 319 665) – (1 319 665)

Share-basedpayment – – – – 1 466 985 – – 1 466 985 – 1 466 985

Dividendspaid – – – – – – (4 408 116) (4 408 116) – (4 408 116)

Non-controllinginterestonacquisitionofsubsidiaries – – – – – – – – 17 186 890 17 186 890

Balance at 31 August 2013 1 780 958 207 478 102 209 259 060 (2 558 722) 2 310 723 9 454 267 44 829 030 263 294 358 19 554 655 282 849 013

Note 13 13 13 13 14 16

STATEMENTS OF CHANGES IN EqUITYfor the year ended 31 August 2013

Company

Share capital

R

Share premium

R

Total share

capitalR


R

Share-based

payment reserve

Accumulated loss

R

Total equity

R

Balanceat1September2011 1 748 726 201 547 269 203 295 995 – – (126570988) 76 725 007

Totalcomprehensiveincomefortheyear – – – – – 8 911 750 8 911 750

Sharesissued 32 232 5 930 833 5 963 065 – – – 5 963 065

Convertibledebenturesissued – – – 15 790 520 – – 15 790 520

Taxeffectonconvertibledebentures – – – (1178655) – – (1178655)

Share-basedpayment – – – – 843 738 – 843 738

Dividendspaid – – – – – (3497451) (3497451)

Balanceat31August2012 1 780 958 207 478 102 209 259 060 14 611 865 843 738 (121156689) 103 557 974

Balanceat1September2012 1 780 958 207 478 102 209 259 060 14 611 865 843 738 (121 156 689) 103 557 974

Totalcomprehensiveincomefortheyear – – – – – 9 000 660 9 000 660

Convertibledebenturesissued – – – 2 814 419 – – 2 814 419

Taxeffectonconvertibledebentures – – – (195 463) – – (195 463)

Share-basedpayment – – – – 1 466 985 – 1 466 985

Dividendspaid – – – – – (4 452 396) (4 452 396)

Balance at 31 August 2013 1 780 958 207 478 102 209 259 060 17 230 821 2 310 723 (116 608 425) 112 192 179

Note 13 13 13 15 14



Group Company

Note2013

R2012

R2013

R2012

R

Cash flows from operating activities

Cashgenerated/(utilised)inoperations 26 5 093 010 (8260930) (548 679) (621914)

Finance income 3 271 940 3 321 648 – –

Dividendsreceived 1 975 487 6 016 263 – –

Dividendsreceivedfromassociate 8 891 100 4 445 550 – –

Financecosts (7 091 840) (957989) – –

Dividendspaid (4 408 116) (3476428) (4 452 396) (3497451)

Income tax paid 27 (418 320) (3938361) – –

Net cash inflow/(outflow) from operating activities 7 313 261 (2850247) (5 001 075) (4119365)

Cash flows from investing activities

Acquisitionofproperty,plantandequipment 3 (2 875 840) (3599211) – –

Acquisitionofandadditiontoinvestmentproperty 4 (1 656 697) (8425473) – –

Proceedsondisposalofnon-currentassets 3, 4 5 487 761 – – –

Decreaseinloansreceivable – 392 000 – –

Loansrepaidbygroupcompanies – – 7 539 255 3 450 100

Proceedsonsaleofassociate – 40 672 102 – –

Businesscombination (488 211) – – –

Loanadvancedtojointlycontrolledentitiesandassociates (15 912 572) (14112577) – –

Acquisitionofheld-for-tradingandavailable-for-saleinvestments (7 454 098) (23790817) – –

Proceedsondisposalofinvestments 27 088 222 15 990 611 – –

Net cash inflow from investing activities 4 188 565 7 126 635 7 539 255 3 450 100

Cash flows from financing activities

Changeinshareholdingofsubsidiary – (2840491) – –

Treasurysharepurchases (1 319 665) – – –

Settlementofderivativeinstrument (10 421 172) – – –

Loans(repaidto)/receivedfromgroupcompanies – – (2 535 471) 671 438

Increase/(decrease)inborrowings 2 149 175 (9496055) – –

Net cash (outflow)/inflow from financing activities (9 591 662) (12336546) (2 535 471) 671 438

Net cash increase/(decrease) in cash and cash equivalents 1 910 164 (8060158) 2 709 2 173

Cashandcashequivalentsatthebeginning of the year 32 769 871 40 830 029 60 414 58 241

Total cash and cash equivalents at the end of the year 34 680 035 32 769 871 63 123 60 414

STATEMENTS OF CASH FLOW for the year ended 31 August 2013

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 August 2013

1. BASIS OF PREPARATIONThe annual financial statements have been prepared in accordancewith International Financial Reporting Standards, theSAICAFinancialReportingGuidesasissuedbytheAccountingPracticesCommitteeandtheCompaniesActofSouthAfrica.Theannualfinancialstatementshavebeenpreparedonthehistoricalcostbasis,exceptforthemeasurementofinvestmentproperties and certain financial instruments at fair value, and incorporate the principal accountingpolicies set out below. Themethodsusedtomeasurefairvaluesarediscussedfurtherinnote2(u).

TheyarepresentedinSouthAfricanRands.

Theseaccountingpoliciesareconsistentwiththepreviousperiod.

(a) International reporting standards not yet effective

IFRS9–FinancialInstrumentsThis new standard is the first phase of a three-phase project to replace IAS 39 –Financial Instruments: Recognition and Measurement.Phaseonedealswiththeclassificationandmeasurementoffinancialassetsandfinancial liabilities. ThefollowingarechangesfromtheclassificationandmeasurementrulesofIAS39:

– Financialassetswillbecategorisedasthosesubsequentlymeasuredatfairvalueoratamortisedcost.

– Financialassetsatamortisedcostarethosefinancialassetswherethebusinessmodelformanagingtheassetsistoholdtheassetstocollectcontractualcashflows(wherethecontractualcashflowsrepresentpaymentsofprincipalandinterestonly).Allotherfinancialassetsaretobesubsequentlymeasuredatfairvalue.

– Undercertaincircumstances,financialassetsmaybedesignatedasatfairvalue.

– Voluntaryreclassificationoffinancialassetsisprohibited.Financialassetsshallbereclassifiediftheentitychangesits business model for the management of financial assets. In such circumstances, reclassification takes placeprospectivelyfromthebeginningofthefirstreportingperiodafterthedateofchangeofthebusinessmodel.

– Investmentsinequityinstrumentsmaybemeasuredatfairvaluethroughothercomprehensiveincome.Whensuchanelectionismade,itmaynotsubsequentlyberevoked,andgainsorlossesaccumulatedinequityarenotrecycled toprofitorlossonderecognitionoftheinvestment.Theelectionmaybemadeperindividualinvestment.

– IFRS9doesnotallowforinvestmentsinequityinstrumentstobemeasuredatcostunderanycircumstances.

– Anentitychoosing tomeasurea liabilityat fairvaluewillpresent theportionof thechange in its fairvaluedue tochangesintheentity’sowncreditriskintheothercomprehensiveincomesectionoftheincomestatement,ratherthanwithinprofitandloss.

Theeffectivedateof thestandard is foryearsbeginningonorafter1January2015.Thegroupexpects toadopt thestandardforthefirsttimeinthe2016annualfinancialstatements.

Itisunlikelythatthestandardwillhaveamaterialimpactontherecognitionandmeasurementoftheseitemsbutmayresultinadditionaldisclosure.

IFRS10–ConsolidatedFinancialStatementsThe standard replaces the consolidation sections of IAS 27 –Consolidated and Separate Financial Statements and SIC12–Consolidation – Special Purpose Entities.Thestandardsetsoutanewdefinitionofcontrol,whichexistsonlywhenanentityisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentity,andhastheabilitytoeffectthosereturnsthroughpowerovertheinvestee.


It isunlikely that thestandardwillhaveamaterial impactonthegroup’sannualfinancialstatementsbutmayresult inadditionaldisclosure.

IFRS11–JointArrangementsThe standard replaces IAS 31 – Interests in Joint Ventures and SIC 13 – Jointly Controlled Entities: Non Monetary Contributions by Venturers. The standard defines a joint arrangement as existing onlywhen decisions about relevantactivitiesrequiretheunanimousconsentofthepartiessharingjointcontrol intermsofacontractualarrangement.Thestandardidentifiestwotypesofjointarrangementsas:

– Jointoperationswhichexistwhentheentitiessharing jointcontrolhavedirect rights to theassetsandobligationsfortheliabilitiesofthejointarrangements.Insuchcasesthejointoperatorsrecognisetheirshareoftheassetsandliabilitiesandprofitsandlossesofthejointarrangementsintheirfinancialstatements.

– Jointventureswhichexistwhenthepartieswithjointcontrolhaverightstothenetassetsofthearrangement.Ajointventureraccountsforitsinvestmentusingtheequitymethod.

36 37

Notes to the aNNual fiNaNcial statemeNtsfor the year ended 31 August 2013

trematoN І Integrated Annual Report 2013 trematoN І Integrated Annual Report 2013


Managementiscurrentlyassessingtheimpactofthenewstandard.Ifthejointarrangementsmeetthedefinitionofajointoperationthestandardwillhaveamaterialimpactonthegroup’sannualfinancialstatements.Ifthejointarrangementsmeet thedefinitionofa jointventure, it isunlikely that thestandardwillhaveamaterial impacton thegroup’sannualfinancialstatementsbutmayresultinadditionaldisclosure.

IFRS12–DisclosureofInterestsinOtherEntities

Thestandardsetsoutdisclosurerequirementsforinvestmentsinsubsidiaries,associates,jointventuresandunconsolidatedstructuredentities.Thedisclosuresareaimedtoprovideinformationaboutthesignificanceandexposuretorisksofsuchinterests.Themostsignificantimpactisthedisclosurerequirementforunconsolidatedstructuredentitiesoroff-balancesheetvehicles.


The adoption of the new standard is expected to increase the level of disclosure provided for the entities interest insubsidiaries,jointventuresandassociates.

IAS27–SeparateFinancialStatements

ConsequentialamendmentasaresultofIFRS10.TheamendedStandardnowonlydealswithseparatefinancialstatements.

Theeffectivedateoftheamendmentisforyearsbeginningonorafter1January2013.Thegroupexpectstoadoptthestandardforthefirsttimeinthe2014annualfinancialstatements.

Itisunlikelythattheamendmentwillhaveamaterialimpactonthegroup’sannualfinancialstatements.

IFRS13–FairValueMeasurement

NewstandardsettingoutguidanceonthemeasurementanddisclosureofitemsmeasuredatfairvalueorrequiredtobedisclosedatfairvalueintermsofotherIFRS’s.


Managementiscurrentlyassessingtheimpactofthenewstandard.

IAS16–Property,PlantandEquipment

Spareparts,stand-byequipmentandservicingequipmentarerecognisedasproperty,plantandequipment.

Theeffectivedateoftheamendmenttothestandardisforyearsbeginningonorafter1January2013.Thegroupexpectstoadopttheamendmentforthefirsttimeinthe2014annualfinancialstatements.


IAS32–FinancialInstrumentsPresentation

Incometaxrelatingtodistributionstoequityholdersandtransactioncostsofequity transactionsareaccountedfor inaccordancewithIAS12.

Explanationof“currentlyhasalegallyenforceablerighttoset-off”;andrequirementtodisclosegrossamountssubjecttoset-offrightsandtherelatednetcreditexposure.



IAS36–ImpairmentofAssets

Disclosurerequirementsforrecoverableamountwheretherecoverableamountofimpairedassetsisbasedonfairvaluelesscostsofdisposal.



Nootherstandardsorinterpretationsrelevanttothegroup’soperationshavebeenpublishedwhichweremandatoryforaccountingperiodsbeginningonorafter1September2013.

(b) Functional and presentation currency

These financial statements are presented in South African Rands, which is the group’s functional currency and thepresentationcurrencyofboththecompanyandthegroup.

(c) Significant judgements and sources of estimation uncertainty

Inpreparing theannual financial statements,management is required tomakeestimatesandassumptions that affectthe amounts represented in the annual financial statements and relateddisclosures.Useof available information andtheapplicationofjudgementisinherentintheformationofestimates.Actualresultsinthefuturecoulddifferfromtheseestimateswhichmaybematerialtotheannualfinancialstatements.Significantjudgementsinclude:

Impairmentoffinancialassets

Thegroupassesses loansandreceivablesfor impairmentonanongoingbasis. Indeterminingwhetheran impairmentlossshouldberecordedinprofitorloss,thegroupmakesjudgementsastowhetherthereisobservabledataindicatingameasurabledecreaseintheestimatedfuturecashflowsofthatfinancialasset.

Fairvalueestimation

Thefairvalueoffinancialinstrumentstradedinactivemarkets(suchasheld-for-tradingandavailable-for-salesecurities)isbasedonquotedmarketpricesatthereportingperiodend.Thequotedmarketpriceusedforfinancialassetsheldbythegroupisthecurrentbidprice.

Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedbyusingvaluationtechniques.Thegroupusesavarietyofmethodsandmakesassumptionsthatarebasedonobservablemarketconditionsexistingattheendofeachreportingperiod,wherepossible,butwherethisisnotfeasible,adegreeofjudgementisrequiredinestablishingfairvalues.Thejudgementsincludeconsiderationsof inputssuchasliquidityrisk,creditriskandvolatility.Changesinassumptionsaboutthesefactorscouldaffectthereportedfairvalueoffinancialinstruments.

Taxation

Judgementisrequiredindeterminingtheprovisionforincometaxesduetothecomplexityoflegislation.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.Thegrouprecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

Thegrouprecognisesthenetfuturetaxbenefitrelatedtodeferredincometaxassetstotheextentthatitisprobablethatthedeductibletemporarydifferenceswillreverseintheforeseeablefuture.Assessingtherecoverabilityofdeferredincometaxassetsrequiresthegrouptomakesignificantestimatesrelatedtoexpectationsoffuturetaxableincome.Estimatesoffuturetaxableincomearebasedonforecastcashflowsfromoperationsandtheapplicationofexistingtaxlawsineachjurisdiction.Totheextentthatfuturecashflowsandtaxableincomediffersignificantlyfromestimates,theabilityofthegrouptorealisethenetdeferredtaxassetsrecordedattheendofthereportingperiodcouldbeimpacted.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

Inparticular,informationaboutsignificantareasofestimation,uncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsaredescribedinthefollowingnotes:

• Note2(u)–valuationoffinancialinstruments;

• Note4–classificationandvaluationofinvestmentproperty;

• Note15–valuationofcompoundinstruments;and

• Note18–valuationofderivativeliability.

2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of consolidation

(i) Subsidiaries

Subsidiariesareentitiescontrolledbythegroup.Controlexistswhenthegrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Inassessingcontrol,potentialvotingrightsthatcurrentlyareexercisablearetakenintoaccount.

Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.Inthecompany’sfinancialstatements,investmentsinsubsidiariesarecarriedatcostlessanyaccumulatedimpairment.

Thegroupalsoconsidersthede factocontrolmodelforthebasisofconsolidatingasubsidiaryinwhichtheabilityinpracticetocontrolanotherentityexistsandnootherpartyhastheabilitytocontrol.

Theaccountingpoliciesofsubsidiarieshavebeenchangedwhennecessarytoalignthemwiththepoliciesadoptedbythegroup.

Investmentsinsubsidiariesarecarriedatcostlessanyimpairmentbythecompany.

38 39



(ii) Jointlycontrolledentities(equityaccountedinvestees)Joint controlled entities are entities over whose activities the group has joint control, established by contractualagreementandrequiringunanimousconsentforstrategicfinancialandoperatingdecisions.Jointlycontrolledentitiesare accounted for using the equitymethod (equity accounted investees) and are initially recognised at cost. Theconsolidatedfinancialstatementsincludethegroup’sshareofincomeandexpensesandequitymovementofequityaccounted investees, from the date that joint control commences until the date that joint control ceases. In thecompany’sfinancialstatements,investmentinjointventuresiscarriedatcostlessaccumulatedimpairmentlosses.

Whenthegroup’sshareoflossesexceedsitsinterestinanequityaccountedinvestee,thecarryingamountofthatinterest(includinganylong-terminvestments)isreducedtonilandtherecognitionoffurtherlossesisdiscontinuedexcepttotheextentthatthegrouphasanobligationorhasmadepaymentsonbehalfoftheinvestee.

(iii) Associates(equityaccountedinvestees)Associatesareentitiesoverwhoseactivitiesthegrouphassignificantinfluencebutnotcontroloverthefinancialandoperatingpolicies.Significantinfluenceispresumedtoexistwhenthegroupholdsbetween20and50percentofthevotingpowerofanotherentity.Associatesareaccountedforusingtheequitymethod(equityaccountedinvestees)andare initially recognisedatcost.Thegroup’s investment includesgoodwill identifiedonacquisition,netof anyaccumulatedimpairmentlosses.Theconsolidatedfinancialstatementsincludethegroup’sshareoftheincomeandexpensesandequitymovementsofequityaccountedinvestees,afteradjustmentstoaligntheaccountingpolicieswiththoseofthegroup,fromthedatethatsignificantinfluencecommencesuntilthedatethatsignificantinfluenceceases.Whenthegroup’sshareoflossesexceedsitsinterestinanequityaccountedinvestee,thecarryingamountofthatinterest(includinganylong-terminvestments)isreducedtonilandtherecognitionoffurtherlossesisdiscontinuedexcepttotheextentthatthegrouphasanobligationorhasmadepaymentsonbehalfoftheinvestee.

(iv) TransactionseliminatedonconsolidationIntra-groupbalancesandtransactions,andanyunrealisedincomeandexpensesarisingfromintra-grouptransactions,are eliminated in preparing the consolidated financial statements.Unrealised gains arising from transactionswithequityaccountedinvesteesareeliminatedagainsttheinvestmenttotheextentofthegroup’sinterestintheinvestee.Unrealisedlossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.

(v) ChangesinownershipTransactionswhichresultinchangesinownershiplevels,wherethegrouphascontrolofthesubsidiarybothbeforeandafterthetransactionareregardedasequitytransactionsandarerecogniseddirectlyinthestatementofchangesinequity.

(vi) BusinesscombinationsThegroupaccountsforbusinesscombinationsusingtheacquisitionmethodofaccounting.Thecostofthebusinesscombinationismeasuredastheaggregateofthefairvaluesofassetsgiven,liabilitiesincurredorassumedandequityinstrumentsissued.Costsdirectlyattributabletothebusinesscombinationareexpensedasincurred,exceptthecoststoissuedebtwhichareamortisedaspartoftheeffectiveinterestandcoststoissueequitywhichareincludedinequity.

The acquiree’s identifiable assets, liabilities and contingent liabilities which meet the recognition conditions of IFRS3–Business Combinations arerecognisedattheirfairvaluesatacquisitiondate,exceptfornon-currentassets (ordisposalcompany)thatareclassifiedasheld-for-saleinaccordancewithIFRS5–Non-current Assets Held-for-Sale and Discontinued Operations,whicharerecognisedatfairvaluelesscoststosell.

Onacquisition,thegroupassessestheclassificationoftheacquiree’sassetsandliabilitiesandreclassifiesthemwherenecessaryinaccordancewiththegrouppolicies.

Non-controllinginterestsarisingfromabusinesscombination,whicharepresentownershipinterests,andentitletheirholderstoaproportionateshareoftheentity’snetassetsintheeventofliquidation,aremeasuredeitheratthepresentownershipinterests’proportionateshareintherecognisedamountsoftheacquiree’sidentifiablenetassetsoratfairvalue.The treatment isnotanaccountingpolicychoicebut isselected foreach individualbusinesscombination,anddisclosedinthenoteforbusinesscombinations.Allothercomponentsofnon-controllinginterestsaremeasured attheiracquisitiondatefairvalues,unlessanothermeasurementbasisisrequiredbyIFRS’s.

Incaseswherethegroupheldanon-controllingshareholdingintheacquireepriortoobtainingcontrol,thatinterestismeasuredtofairvalueasatacquisitiondate.Themeasurementtofairvalueisincludedinprofitorlossfortheyear.

Goodwillisdeterminedastheconsiderationpaid,plusthefairvalueofanyshareholdingheldpriortoobtainingcontrol,plusnon-controllinginterestandlessthefairvalueoftheidentifiableassetsandliabilitiesoftheacquiree.

Goodwillisnotamortisedbutistestedonanannualbasisforimpairment.Ifgoodwillisassessedtobeimpaired,thatimpairmentisnotsubsequentlyreversed.

(b) Financial instruments

(i) DerivativefinancialinstrumentsDerivativesembedded inother financial instrumentsorother non-financial host contracts are treatedas separatederivativeswhen their risksandcharacteristicsarenot closely related to thoseof thehost contract and thehostcontractisnotcarriedatfairvaluewithunrealisedgainsorlossesreportedinprofitorloss.

Changesinthefairvalueofderivativefinancialinstrumentsarerecognisedinprofitorlossastheyarise.

Derivativesareclassifiedasfinancialassetsatfairvaluethroughprofitorloss–heldfortrading.

(ii) Non-derivativefinancialinstrumentsNon-derivativefinancialinstrumentscompriseinvestmentsinequitysecurities,tradeandotherreceivables,cashandcashequivalents,tradeandotherpayables,secureddebenturesandloansreceivableandpayable.

Non-derivativefinancialinstrumentsarerecognisedinitiallyatfairvalueplus,forinstrumentsnotatfairvaluethroughprofit or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financialinstrumentsaremeasuredasdescribedbelow.

Afinancial instrument is recognised if thegroupbecomesaparty to thecontractualprovisionsof the instrument.Financialassetsarederecognisedifthegroup’scontractualrightstothecashflowsfromthefinancialassetsexpireorifthegrouptransfersthefinancialassettoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsof theasset.Purchasesandsalesoffinancialassetsareaccounted forat tradedate, i.e. thedate that thegroupcommitsitselftopurchaseorselltheasset.Financialliabilitiesarederecognisedifthegroup’sobligationsspecifiedinthecontractexpireoraredischargedorcancelled.

Cashandcashequivalentscomprisecashbalancesandcalldeposits.Bankoverdraftsthatarerepayableondemandandformanintegralpartofthegroup’scashmanagementareincludedasacomponentofcashandcashequivalentsforthepurposeofthestatementofcashflows.

(iii) Available-for-salefinancialassetsAninstrumentisclassifiedasavailable-for-salefinancialassetwhenitisnotclassifiedasloansandreceivables,held-to-maturityinvestmentsorfinancialassetsatfairvaluethroughprofitorloss.Subsequenttoinitialrecognition,theyaremeasuredatfairvalueandchangestherein,otherthanimpairmentlossesarerecognisedinothercomprehensiveincomeandpresentedinequity.Whenaninvestmentisderecognisedorimpaired,thecumulativegainorlossinequityistransferredtoprofitorloss.

(iv) FinancialassetsatfairvaluethroughprofitorlossAninstrumentisclassifiedatfairvaluethroughprofitorlossifitisheld-for-trading.Uponinitialrecognitionattributabletransactioncostsarerecognisedinprofitorlosswhenincurred.Financialinstrumentsatfairvaluethroughprofitorlossaremeasuredatfairvalue,andchangesthereinarerecognisedinprofitorloss.

(v) LoansandreceivablesLoansandreceivablesarenon-derivativeassetswithnorepaymenttermsthatarenotquotedinanactivemarket. Theyareincludedincurrentassets.Ifrepaymentisnotexpectedwithintwelvemonthsafterreportingdate,theloansandreceivablesareincludedinnon-currentassets.

Loansandreceivablesarecarriedatamortisedcostusingtheeffective interestratemethod. Intereston loans and receivables are calculated using the effective interest rate method and recognised in the statement of comprehensiveincome.

(vi) TradeandotherreceivablesTradereceivablesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinprofitorlosswhenthereisobjectiveevidencethattheassetisimpaired.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpaymentsareconsideredindicatorsthatthetradereceivableisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.

Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountofthelossisrecognisedinprofitorlosswithinoperatingexpenses.Whenatradereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccount for tradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpensesinprofitorloss.Tradeandotherreceivablesareclassifiedasloansandreceivables.

40 41



(vii) Loanspayable

Loanspayable are initiallymeasured at fair value, and are subsequentlymeasured at amortised cost, using theeffectiveinterestratemethod.Anydifferencebetweentheproceeds(netoftransactioncosts)andthesettlementorredemptionofborrowingsisrecognisedoverthetermoftheborrowingsinaccordancewiththegroup’saccountingpolicyforborrowingcosts.

(viii) Tradeandotherpayables

Tradepayablesare initiallymeasuredat fair value,andaresubsequentlymeasuredatamortisedcost,using theeffectiveinterestratemethod.

Other

Othernon-derivativefinancialassetsaremeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairmentlosses.

(ix) Sharecapital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to issue of ordinary shares arerecognisedasadeductionfromequity,netofanytaxeffects.

(c) Share-based payments

Goodsorservicesreceivedoracquiredinashare-basedpaymenttransactionarerecognisedwhenthegoodsorastheservicesarereceived.Acorrespondingincreaseinequityisrecognisedifthegoodsorserviceswerereceivedinanequity-settledshare-basedpaymenttransactionoraliabilityifthegoodsorserviceswereacquiredinacash-settledshare-basedpaymenttransaction.

Whenthegoodsorservicesreceivedoracquiredinashare-basedpaymenttransactiondonotqualifyforrecognitionasassets,theyarerecognisedasexpenses.

For equity-settled share-based payment transactions the goods or services received and the corresponding increaseinequityaremeasureddirectlyatthefairvalueofthegoodsorservicesreceivedprovidedthatthefairvaluecannotbeestimatedreliably.

Ifthefairvalueofthegoodsorservicesreceivedcannotbeestimatedreliably,theirvalueandthecorrespondingincreaseinequity,indirectly,aremeasuredbyreferencetothefairvalueoftheequityinstrumentsgranted.

Iftheshare-basedpaymentsgranteddonotvestuntilthecounterpartycompletesaspecifiedperiodofservice,thegroupaccountsforthoseservicesastheyarerenderedbythecounterpartyduringthevestingperiod,(oronastraight-linebasisoverthevestingperiod).

Iftheshare-basedpaymentsvestimmediatelytheservicesreceivedarerecognisedinfull.

(d) Compound instruments

Compulsory convertible debentures are compound instruments, consisting of a liability component and an equitycomponent.Atthedateofissue,thefairvalueoftheliabilitycomponentisestimatedusingtheprevailingmarketinterestrateforsimilarnon-convertibledebt.Thedifferencebetweentheproceedsofissueoftheconvertibleinstrumentsandthefairvalueassignedtotheliabilitycomponent,representingtheembeddedoptiontoconverttheliabilityintoequityofthecompany,isincludedinequity.

Combinedunitsarecompoundinstruments,consistingofadebenture(liability)componentandashare(equity)component.Thedebenturesarecarriedatamortisedcost,andanypremiumordiscountonissueiswrittenoffovertheredemptionperiodusingtheeffectiveinterestratemethod.

(e) Property, plant and equipment

(i) Recognitionandmeasurement

Items of property, plant and equipment aremeasured at cost less accumulated depreciation and accumulatedimpairmentlosses.

Costincludesexpendituresthataredirectlyattributabletotheacquisitionoftheasset.

Whenpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.

Gainsandlossesondisposalofanitemofproperty,plantandequipmentaredeterminedbycomparingtheproceedsfromdisposalwith thecarryingamountofproperty,plantandequipmentandare recognisednetwithin “tradingincome”inprofitorloss.

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofproperty,plantandequipmentisrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtothegroupanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedinprofitorlossasincurred.

(iii) Depreciation

Depreciationisrecognisedinprofitorlossonastraight-linebasisovertheestimatedusefullivesofeachpartofanitemofproperty,plantandequipment.Leasedassetssubjecttofinanceleasesaredepreciatedovertheshorteroftheleasetermandtheirusefullives(ifownershipdoesnotpass).Landisnotdepreciated.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

• Buildings 50years

• Fixturesandfittings 5years

• Motorvehicles 4–5years

• Officefurnitureandequipment 6years

• Harbourequipment 3years

• Moorings 5–10years

• ITequipment 3years

Depreciationmethods,usefullivesandresidualvaluesarereassessedatthereportingdateandadjustedifappropriate.

Achangeofproperty,plantandequipmenttoinvestmentpropertyisaccountedforusingtherevaluationmodel.Againonremeasurementonchangedateisrecognisedinothercomprehensiveincomeandalossisrecognisedinprofitorloss.

(f) Investment property

Investmentpropertyisrecognisedasanassetwhen,andonlywhen,itisprobablethatthefutureeconomicbenefitsthatareassociatedwiththeinvestmentpropertywillflowtotheenterprise,andthecostoftheinvestmentpropertycanbemeasuredreliably.

Investmentpropertyisinitiallyrecognisedatcost.Transactioncostsareincludedintheinitialmeasurement.Costsincludecosts incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If areplacementpartisrecognisedinthecarryingamountoftheinvestmentproperty,thecarryingamountofthereplacedpartisderecognised.

Borrowingcostsrelatedtotheacquisitionorconstructionofqualifyingassetsarecapitalisedasincurred.Subsequenttoinitialmeasurementinvestmentpropertyismeasuredatfairvalue.

Againorlossarisingfromachangeinfairvalueisincludedinnetprofitorlossfortheperiodinwhichitarises.Ifthefairvalueofinvestmentpropertyunderconstructionisnotdeterminable,itismeasuredatcostuntiltheearlierofthedateitbecomesdeterminableorconstructioniscomplete.

Investment properties are derecognisedwhen either they have beendisposed of orwhen the Investment property ispermanentlywithdrawnfromuseandnofutureeconomicbenefitisexpectedfromitsdisposal.Thedifferencebetweenthenetdisposalproceedsandthecarryingamountofthepropertyisrecognisedinprofitandlossintheperiodofderecognition.

(g) Inventories

Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Thecostofinventoriesincludesexpenditureincurredinacquiringtheinventories,andothercostsincurredinbringingthemtotheirpresentlocationandcondition.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandsellingexpenses.

Thecostoftheinventoriesisassignedusingthespecificidentificationmethod.

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(h) Impairment

(i) Financialassets

Afinancialassetisassessedateachreportingdatetodeterminewhetherthereisanyobjectiveevidencethatitisimpaired.Afinancialassetisconsideredtobeimpairedifobjectiveevidenceindicatesthatoneormoreeventshavehadanegativeeffectontheestimatedfuturecashflowsofthatasset.

Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifferencebetweenitscarryingamount,andthepresentvalueof theestimatedfuturecashflowsdiscountedat theoriginaleffectiveinterestrate.Animpairmentlossinrespectofanavailable-for-salefinancialassetiscalculatedbyreferencetoitscurrentfairvalue.

Individuallysignificantfinancialassetsaretestedforimpairmentonanindividualbasis.Theremainingfinancialassetsandthoseassessedindividuallybutnotfoundtobeimpairedareassessedcollectivelyingroupsthatsharesimilarcreditriskcharacteristics.

Allimpairmentlossesarerecognisedinprofitorloss.Anycumulativelossinrespectofanavailable-for-salefinancialassetrecognisedpreviouslyinequityistransferredtoprofitorloss.

Animpairmentlossisreversedifthereversalcanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised.Forfinancialassetsmeasuredatamortisedcost,thereversalisrecognisedinprofitorloss. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in othercomprehensiveincome.

(ii) Non-financialassets

Thecarryingamountsofthegroup’snon-financialassetsotherthaninvestmentproperty,inventoriesanddeferredtaxassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.

Therecoverableamountofanassetorcash-generatingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetime-valueofmoneyandtherisksspecifictotheasset.Forthepurposesofimpairmenttesting,assetsaregroupedtogetherintothesmallestgroupofassetsthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsofotherassetsorgroupofassets(thecash-generatingunit).

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds itsrecoverableamount.Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheotherassetsintheunit(groupofunits)onapro ratabasis.

Impairmentlossesrecognisedinpriorperiodsareassessedateachreportingdateforanyindicationsthatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversed(notforgoodwill)onlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,ifnoimpairmentlosshadbeenrecognised.

(i) Fair value reserve

Thefairvaluereservecomprisesthecumulativechange,netofdeferredtax,inthefairvalueofavailable-for-saleinvestmentsandtherevaluationofproperty,plantandequipmentuntilthepropertiesorinvestmentsarederecognised.

(j) Borrowing costs

Borrowingcostsarecapitalisedtotheextentthattheyaredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingasset.Capitalisationofborrowingcostscommenceswhentheactivitiesnecessarytopreparetheassetforits intendeduseare inprogressandexpendituresandborrowingcostsarebeing incurred.Capitalisationofborrowingcosts continues until the assets are substantially ready for their intended use. The capitalisation rate is arrived at byreferencetotheactualratepayableonborrowingsfordevelopmentpurposesor,withregardtothepartofdevelopmentcostfinancedoutofgeneralfunds,theweightedaveragecostofborrowings.

(k) RevenueRevenueisearnedfromrentalincome,interestincome,dividendincomeandrenderingofservices.

Interestincomeisrecognisedasitaccrues,usingtheeffectiveinterestmethod.

Dividendincomeisrecognisedwhenthegroup’srighttoreceivepaymenthasbeenestablishedwhichcoincideswiththelastdateofregistration.

Revenuefromservicesrenderedisrecognisedinprofitandlossinproportiontothestageofcompletionofthetransactionatthereportingdate.

Rental income is recognised inprofit or lossona straight-linebasisover the termof the lease. Lease incentives arerecognisedasanintegralpartofthetotalrentalincome,overthetermofthelease.

Revenueonsaleofpropertiesisrecognisedonce:

• therisksandrewardsofownershiphavetransferred;

• thegroupnolongerhasmanagerialinvolvement;

• theamountofrevenueandcostscanbemeasuredreliable;and

• itisprobablethattheeconomicbenefitsfromthesalewillflow.

(l) Trading profit/lossThegroupchangedthepresentationofitsstatementsofcomprehensiveincomeinthecurrentfinancialyearinordertoimproveclarityandcomparability.Itnolongerpresentsatradingprofitlineitemasinprioryears,butinsteadpresentsitsstatementsofcomprehensiveincomebynature,presentinganoperatingprofitlineitembeforefinancecosts,profitfromequity-accountedinvestmentsandincometax.Revenueandprofitbeforeincometaxhavenotbeenmateriallyaffectedbythischangeinpresentation.

(m) Lease paymentsPaymentsmadeunderoperatingleasesarerecognisedinprofitorlossonastraight-linebasisoverthetermofthelease.Leaseincentivesreceivedarerecognisedasanintegralpartofthetotalleaseexpense,overthetermofthelease.

(n) Finance costsFinancecostscomprise interestexpenseonborrowings.Allborrowingcostsarerecognised inprofitor lossusingtheeffectiveinterestmethod.

(o) Employee benefitsThecostofshort-termemployeebenefits,(thosepayablewithin12monthsaftertheserviceisrendered,suchassalaries,paidannualleave,sickleave,bonuses,andnon-monetarybenefitssuchasmedicalaid),arerecognisedintheperiodinwhichtheserviceisrenderedandarenotdiscounted.

(i) DefinedcontributionplansAdefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsintoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanemployeebenefitexpenseinprofitor losswhentheyaredue.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninfuturepaymentsisavailable.

(p) Income taxIncometaxexpensecomprisescurrentanddeferredtax.Incometaxexpenseisrecognisedinprofitorlossexcepttotheextentthatitrelatestoabusinesscombinationoritemsrecogniseddirectlyinequityorothercomprehensiveincome.

Currenttaxistheexpectedtaxpayableorreceivableonthetaxableincomeorlossfortheyear,usingtaxratesenactedorsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferredtax is recognised in respectof temporarydifferencesbetweenthecarryingamountsofassetsand liabilities forfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxisnotrecognisedforthefollowingtemporarydifferences:taxabletemporarydifferencesarisingontheinitialrecognitionofgoodwill,theinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingnortaxableprofit,anddifferencesrelatingtoinvestmentsinsubsidiariesandjointlycontrolledentitiestotheextentthattheyprobablywillnotreverseintheforeseeablefuture.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtothetemporarydifferenceswhentheyreverse,basedonthetaxratesthathavebeenenactedorsubstantivelyenactedbythereportingdate.

Deferredtaxassetsand liabilitiesareoffset if there isa legallyenforceableright tooffset thecurrent tax liabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthorityonthesametax(ortaxable)entity,oradifferenttaxentity,buttheyintendtosettlecurrenttaxliabilitiesandassetsonanetbasisortheirtaxassetsandliabilitieswillberealisedsimultaneously.

Adeferredtaxassetisrecognised(forunusedtaxlosses,taxcreditsanddeductibletemporarydifferences)totheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferences(ortaxlosses)canbeutilised.Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

Additionalincometaxesthatarisefromthedistributionofdividendsarerecognisedatthesametimeastheliabilitytopaytherelateddividendisrecognised.

44 45



(q) GuaranteesAfinancialguaranteeisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.

Financial guarantees are classified as insurance contracts as defined in IFRS 4 – Insurance Contracts. A liability isrecognisedwhenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettlethecontractandareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognisedisthebestestimateoftheexpenditurerequiredtosettlethecontractatthereportingdate.Wheretheeffectofdiscountingismaterial, theliabilityisdiscounted.Thediscountrateusedisapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

(r) Earnings per shareBasicearningspershareiscalculatedbydividingtheprofitorlossattributabletoordinaryshareholdersofthegroupbytheweightedaveragenumberofordinarysharesoutstandingduringtheperiod.Dilutedearningspershareisdeterminedbyadjustingtheprofitorlossattributabletoordinaryshareholdersandtheweightedaveragenumberofordinarysharesoutstandingfortheeffectsofalldilutivepotentialordinaryshares.

(s) Segment reportingTheprinciplesegmentsofthegrouphavebeenidentifiedbybusinesssegment.Thebasisisrepresentativeoftheinternalstructureusedformanagementreporting.

Segmentrevenuereflectsbothsalestoexternalpartiesandintergrouptransactionsacrosssegments.Thesegmentresultispresentedassegmentprofitbeforeandaftertaxation.

Segmentoperatingassetsandliabilitiesareonlythoseitemsthatcanbespecificallyidentifiedwithinaparticularsegment.

(t) Cost of salesThecarryingamountofinventoriessoldisrecognisedasanexpenseinthesameperiodinwhichtherelatedrevenueisrecognised.Anywrite-downtonetrealisablevalue,orlossesofinventories,arerecognisedasanexpenseintheperiodinwhichtheyoccur.Anyreversalsofinventorywrite-downsarisingfromanincreaseinnetrealisablevalue,isrecognisedasareductioninthecostofsales,intheperiodinwhichthereversaloccurs.

(u) Determination of fair valuesFair value hierarchy

Level1:Listedsharesmeasuredusingunadjustedquotedprices.

Level2:Appliesinputsotherthanquotedpricesthatareobservablefortheassetseitherdirectly(asprices)orindirectly(derivedfromprices).

Level3:Appliesinputswhicharenotbasedonobservablemarketdata.

(i) InvestmentsinequitysecuritiesThefairvalueoflistedinvestmentsisdeterminedbyreferencetotheirquotedclosingbidpriceatthereportingdate(level1).

(ii) DerivativeinstrumentsThefairvalueisdeterminedthroughvaluationtechniquesusingsignificantunobservableinputs.Thiscategoryincludesallinstrumentswherethevaluationtechniqueincludesinputsnotbasedonobservabledataandtheunobservableinputshaveasignificanteffecton the instrument’svaluation.Thiscategory includes instruments thatarevaluedbased on quoted prices for similar instrumentswhere significant unobservable adjustments or assumptions arerequiredtoreflectdifferencesbetweentheinstruments.

(iii) InvestmentpropertyAnexternal,independentvaluationcompany,havingappropriaterecognisedprofessionalqualificationsandrecentexperienceinthelocationandcategoryofpropertybeingvalued,valuesthegroup’sinvestmentpropertyportfoliofromtimetotime.Thefairvaluesarebasedonmarketvalues,beingtheestimatedamountforwhichapropertycouldbeexchangedonthedateofthevaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.

Intheabsenceofcurrentpricesinanactivemarket,thevaluationsarepreparedbyconsideringtheaggregateoftheestimatedcashflowsexpectedtobereceivedfromrentingouttheproperty.Ayieldthatreflectsthespecificrisksinherentinthenetcashflowsthenisappliedtothenetannualcashflowstoarriveatthepropertyvaluation.

Valuations reflect,whenappropriate: the typeof tenantsactually inoccupationor responsible formeeting leasecommitmentsorlikelytobeinoccupationafterlettingvacantaccommodation,andthemarket’sgeneralperceptionof theircreditworthiness; theallocationofmaintenanceand insuranceresponsibilitiesbetweenthecompanyandthelessee;andtheremainingeconomiclifeoftheproperty.Whenrentreviewsorleaserenewalsarependingwithanticipatedreversionaryincreases,itisassumedthatallnotices,andwhenappropriatecounter-notices,havebeenservedvalidlyandwithintheappropriatetime.

(v) Treasury shares

Where subsidiaries hold shares in their parent company, these are recorded at cost, including any external costs ofacquisition,andaredeductedfromequityastreasuryshares.Whensharesaresubsequentlysoldorre-issued,theircostisreleasedandanygainsorlossesareincludedintreasuryshares.

(w) Non-current assets held-for-sale

Non-currentassetsareclassifiedasassets(ordisposalgroups)held-for-sale if theircarryingamountwillberecoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.Thisconditionisregardedasmetonlywhenthesaleishighlyprobableandtheassetisavailableforimmediatesaleinitspresentcondition.

Forthesaletobehighlyprobablemanagementmustbecommittedtothesaleandanactiveprogrammetolocateabuyerandcompletetheplanmusthavebeeninitiated.Further,theassetsmustbeactivelymarketedforsaleatapricethatisreasonableinrelationtoitscurrentfairvalue.

Inaddition,thesaleshouldbeexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification,andactionsrequiredtocompletetheplanshouldindicatethatitisunlikelythatsignificantchangestotheplanwillbemadeorthattheplanwillbewithdrawn.

Non-currentassetsheld-for-salearemeasuredattheloweroftheircarryingamountandfairvaluelesscosttosell,otherthancertainassetssuchasinvestmentproperties,whicharemeasuredatfairvalue.

Anon-currentassetisnotdepreciatedwhileitisclassifiedasheld-for-sale.

(x) Financial risk management

(i) Overview

Thegroupandcompanyhasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

• creditrisk;

• liquidityrisk;and

• marketrisk.

Thisnotepresentsinformationaboutthegroupexposuretoeachoftheaboverisks,thegroup’sobjectives,policiesand processes for measuring and managing risk, and the group’s management of capital. Further quantitativedisclosuresareincludedthroughoutthesefinancialstatements.

Theboardofdirectorshasoverallresponsibilityfortheestablishmentandoversightofthegroup’sriskmanagementframework.Theboardhasdelegatedtheresponsibilityfordevelopingandmonitoringthegroup’sriskmanagementpoliciestotheexecutivedirectors.

Theexecutivedirectorsreporttotheboardofdirectorsontheiractivities.

Thegroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbythegroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.

Riskmanagement policies and systems are reviewed regularly to reflect changes inmarket conditions and thegroup’sactivities.

Theauditcommitteeoverseeshowmanagementmonitorscompliancewiththegroup’sriskmanagementpoliciesand procedures and reviews the adequacy of the riskmanagement framework in relation to the risks faced by thegroup.

(ii) Creditrisk

Creditriskistheriskoffinanciallosstothegroupifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromthegroup’scashbalances,investments,loanreceivablesandtradereceivables.

Loans receivable

Thegroup’sexposuretocreditriskonloansreceivableisinfluencedbytheunderlyingvalueoftheasset.Managementaccesstherecoverabilityofthisloanbyreferencetothelistedsharepriceorfairvalueoftheinvestmentproperty.Themaximumexposuretocreditriskislimitedtothetotalcarryingvalueoftheloanreceivableasatthereportingdate.

Bank balances

Thegrouponlydepositscashwithmajorbankswithhighqualitycreditstandingand limitsexposure toanyonecounterparty.ThecashbrokerageaccountisheldbyarespectedinstitutioninSouthAfrica.

Guarantees

Thegroup’sexposuretocreditriskonguaranteesisinfluencedbytheunderlyingvalueoftheasset.Managementaccessthecreditriskwithreferencetotheunderlyingassetforwhichthegroupstandsassurety.

46 47



Trade and other receivables

Thegroup’sexposuretocreditriskisinfluencedmainlybytheindividualcharacteristicsofeachcustomer.

Management has established a credit policy under which each new customer is analysed individually forcreditworthinessbeforethegroup’sstandardpaymenttermsandconditionsareoffered.Whenavailable,thegroup’sreviewincludesexternalratings.

(iii) Liquidityrisk

Liquidityriskistheriskthatthegroupwillnotbeabletomeetitsfinancialobligationsastheyfalldue.Thegroup’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficientliquiditytomeetitsliabilitieswhendue,underbothnormalandstressedconditions,without incurringunacceptable lossesor riskingdamagetothegroup’sreputation.

Typicallythegroupensuresthatithassufficientcashondemandtomeetexpectedoperationalexpenses,includingthe servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannotreasonablybepredicted,suchasnaturaldisasters.

Thegroupensuresthereissufficientcashondemandthroughborrowingfacilitiesandoperatingprofits.

(iv) Marketrisk

Marketriskistheriskthatchangesinmarketprices,suchasinterestratesandequitypriceswillaffectthegroup’sincomeorthevalueifitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturn.

Currency risk

Thegrouphasnosignificantexposuretocurrencyrisk.

Interest rate risk

Thegroup’sonlyexposuretointerestrateriskrelatestobankbalances,loansreceivable,tradereceivablesandloanspayablewhicharesubjecttovariablemarket-relatedinterestrates.

Other market price risk

Equitypriceriskarisesfromavailable-for-saleequity,held-for-tradingsecuritiesandderivatives.

Managementmonitors themixofdebtandequitysecurities in its investmentportfoliobasedonmarket indices.Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the board of directors. The primary goal of the group’s investment strategy is to maximise investmentreturns.

(v) Capitalmanagement

Capitalisregardedastotalequity.Theboard’spolicyistomaintainastrongcapitalbasesoastomaintaininvestor,creditorandmarketconfidenceandtosustainfuturedevelopmentsofthebusiness.

Theboardofdirectorsmonitorsthereturnoncapital,whichthegroupdefinesasprofitattributabletoequityholdersoftheparentdividedbytotalequityattributabletoequityholdersoftheparent,excludingnon-controllinginterestonacontinuousbasisasfollows:

Group Company

2013R

2012R

2013R

2012R

Profitattributabletoequityholdersoftheparent 51 498 535 18 900 884 9 000 660 8 911 750

Totalequityattributabletoequityholdersof the parent 263 294 358 214 758 171 112 192 179 103 557 974

Ratioofnetoperatingincometototalshareholders’equity 20% 9% 8% 9%

Therewerenochangesinthegroup’sapproachtocapitalmanagementduringtheyear.

Reconciliation of property, plant and equipment

Opening balance

RAdditions

RDisposals

RRevaluation

R

Transfer to investment

property and other

movementsR

DepreciationR

Closing balance

R

2013

Fixturesandfittings 909 417 296 071 – – – (151 199) 1 054 289

Motorvehicles 216 750 317 544 – – – (55 368) 478 926

Officefurnitureandequipment 159 970 165 147 (6 939) – – (46 056) 272 122

Harbourequipmentandmoorings 5 186 624 1 987 876 – – – (487 716) 6 686 784

ITequipment 27 342 109 202 – – – (56 781) 79 763

6 500 103 2 875 840 (6 939) – – (797 120) 8 571 884

2012

Landandbuildings 6 046 416 – – 2 301 819 (8325227) (23008) –

Fixturesandfittings 933 815 115 436 – – – (139834) 909 417

Motorvehicles 214 884 48 000 – – – (46134) 216 750

Officefurnitureandequipment 77 818 110 206 – – – (28054) 159 970

Harbourequipmentandmoorings 2 242 242 3 275 501 – – – (331119) 5 186 624

ITequipment 7 773 50 068 – – – (30499) 27 342

9 522 948 3 599 211 – 2 301 819 (8325227) (598648) 6 500 103

Thetransfertoinvestmentpropertyrelatestopreviouslyowneroccupiedpropertyandisnowusedtoearnrentalincome.

Expenditureonconstructionofproperty,plantandequipment,includedinadditionsabove,amountedtoR2.0millionfortheyear(2012:R3.3million).

3. PROPERTY, PLANT AND EqUIPMENT2013 2012

GroupCost

R

Accumulated depreciation

R

Carrying value

RCost

R

Accumulated depreciation

R

Carryingvalue

R

Fixturesandfittings 1 962 152 (907 863) 1 054 289 1 666 081 (756664) 909 417

Motorvehicles 667 845 (188 919) 478 926 350 301 (133551) 216 750

Officefurnitureandequipment 442 230 (170 106) 272 124 344 615 (184645) 159 970

Harbourequipmentandmoorings 7 705 157 (1 018 373) 6 686 784 5 690 815 (504191) 5 186 624

ITequipment 287 602 (207 841) 79 761 246 366 (219024) 27 342

Total 11 064 986 (2 493 102) 8 571 884 8 298 178 (1798075) 6 500 103

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4.1 INVESTMENT PROPERTIESGroup

2013R

2012R

Carryingvalue 109 396 708 21 097 718

Carryingvalueatthebeginningoftheyear 21 097 718 4 449 475

Transferfromproperty,plantandequipment(refertonote3) – 8 222 770

AcquisitionofinvestmentpropertiesfromincreaseininvestmentinArbitrageProperty Fund(Pty)Limited 210 734 778 –

Acquisitonofstraight-lineassetfromincreaseininvestmentinArbitrageProperty Fund(Pty)Limited 5 336 875 –

Straight-linerentalincomeadjustmentagainstinvestmentproperties (3 704 977) –

Acquisitionofinvestmentpropertiesfromincreaseininvestmentin TheResiInvestmentGroup 6 421 050 –

Fairvalueadjustmentoninvestmentproperties 18 730 171 –

Transfertonon-currentassetsheld-for-sale (146 402 632) –

Disposalofinvestmentproperties (4 472 972) –

Additionstoinvestmentproperties 1 656 697 8 425 473

Carryingvalueattheendoftheyear 109 396 708 21 097 718

Investmentpropertiescomprisesthefollowingsectors:

Commercial 43 326 275 8 222 773

Industrial 56 633 563 10 177 355

Residential 9 436 870 2 697 590

109 396 708 21 097 718

Incomeandexpensesrelatingtoinvestmentproperties:

Rentalincomefrominvestmentproperties 12 482 522 4 149 223

Directexpensesfromincomegeneratinginvestmentproperties (4 180 193) (1713969)

Directexpensesfromnon-incomegeneratinginvestmentproperties (260 356) (242745)

Property valuations

The fairvalueof thecommercialand industrial investmentproperties,whichequals thecarryingvalue, isbasedeitheronindependentprofessionalvaluerswhohaverecognisedprofessionalqualificationsandexperienceinthevaluationofsimilarinvestmentpropertiesordirectorsvaluationsat31August2013.Thevaluationswerebasedonopenmarketvaluesforeachindividualinvestmentproperty.

Indeterminingafairvalueoftheinvestmentproperties,assumptionsweremadeastothevacancyprovisionforeachpropertyandusingopenmarket-relatedrentals.

Thegrossrentalisadjustedfortypicalmarket-relatedoperatingcostsaswellaslong-termmarket-relatedorpropertyspecificfactors.

Thevaluationoftheresidentialinvestmentwereperformedusingeitherthecapitalisationofnetincomemethodorrecentsalesinformationofsimilarunitsinthesamedevelopment,oracombinationofboth.

Details of investment properties

Sector Name of property DetailsValuation at

31 August 2013

Commercial ClubMykonosResort Erven3754and3755,Langebaan, Section226,227,228,230,231Acropolisandsection39Peninsula,Langebaan, WesternCape 15 660 000

Commercial SandtonActionCricket Erf178,180EastgateExt12, CityofJohannesburg,Gauteng 13 470 392

Commercial GansbaaiShoppingCentre Erf242,Gansbaai,WesternCape 14 195 883

43 326 275

Industrial ClubMykonosResort Erf2785,Langebaan,WesternCape 11 373 526

Industrial 7Dartfield Erf195,EastgateExt13, CityofJohannesburg,Gauteng 12 148 523

Industrial TheWang Erf602SpartanExt2Portion221,EkurhuleniMetropolitanMunicipality,Gauteng 16 486 867

Industrial MaitlandMews Erf22703,Maitland,Number10, 16thAvenue,WesternCape 9 459 755

Industrial RelianceBuilding SectionalTitleUnit,Units1–8SSRelianceBuilding,Scheme138,PaardenIsland,WesternCape 7 164 892

56 633 563

Residential ClubMykonosResort Section7PeninsulaandSection99Acropolis,Langebaan,WesternCape 2 400 000

Residential KimonSquare Unit2,P6andG2KimonSquare,NorthRoad,TableView,WesternCape 351 254

Residential Oasis Unit51Oasis,DisaRoad,GordonsBay,WesternCape 264 566

Residential Catherine’sPlace Units1–13Catherine’sPlace,55BedfordStreet,GlenlillyParow,WesternCape 6 421 050

9 436 870

109 396 708

Details of investment properties transferred to non-current assets held-for-sale

Sector Name of property DetailsValuation at

31 August 2013

Commercial BougainvilleShoppingCentre SectionalTitleUnit,SSBougainville, Schemenumber610/1997,Daspoort,Pretoria 68 000 000

Commercial ShopriteCentre,Rustenburg Erf2460Rustenburg,NorthWest 77 350 000

Residential ClubMykonosResort Section149,Acropolis,Langebaan, WesternCape 1 052 632

146 402 632

50 51



4.2 NON-CURRENT ASSETS HELD-FOR-SALEGroup

2013R

2012R

Non-currentassetsheld-for-salecompriseof:Localproperties

146 402 632 –

Balanceattheendoftheyear 146 402 632 –

Movement for the year

Atthebeginningoftheyear – –

Transferfrominvestmentproperties 146 402 632 –

Balanceattheendoftheyear 146 402 632 –

Bougainville Shopping Centre, Pretoria

Arbitrageentered intoasaleagreementwhichcameintoeffecton26April2013, intermsofwhichArbitragewilldisposeof Bougainville Shopping Centre, for a total consideration of R68.0 million which will result in a profit of R16.2 million (“thedisposal”).Theeffectivedateofthedisposalis1September2013(“theeffectivedate”).

Thedisposalisnotsubjecttoanyoutstandingconditionsprecedent.

ThetotalconsiderationofR68.0millionwillbesettledincashontheeffectivedate.Theproceedswillbeusedtosettletheoutstandingbankdebtonthepropertyandthebalancewillberetainedtobeinvestedinnewpropertyinvestmentsasandwhentheyarise.

ThedisposalsenablesArbitragetorealiseanexcellenttotalreturnoninvestmentonrelativelymatureproperties.Theboardofdirectorsisoftheopinionthattheproceedsofthedisposalcanbemoreproductivelyemployedinfundingsimilarfuturetransactions.

Shoprite Centre, Rustenburg

Arbitrageentered intoasaleagreementwhichcame intoeffecton15May2013, in termsofwhichArbitragewilldispose ofErf2460Rustenburg,knownasShopriteCentre,Rustenburg,foratotalconsiderationofR77.4millionwhichwillresultinaprofitofR25.0million(“thedisposal”).Theeffectivedateofthedisposalis1October2013(“theeffectivedate”).


ThetotalconsiderationofR77.4millionwillbesettledincashontheeffectivedate.Theproceedswillbeusedtosettletheoutstandingbankdebtonthepropertyandthebalancewillberetainedtobeinvestedinnewpropertyinvestmentsasandwhentheyarise.

Kaliva 727, Club Mykonos Langebaan

Club Mykonos Executive Sales (Pty) Ltd (“Executive Sales”) entered into a sale agreement which came into effect on 26April2013,intermsofwhichExecutiveSaleswilldisposeofKaliva727,Sectionno.149,Acropolis,foratotalconsiderationofR1.0million(“thedisposal”).Theeffectivedateofthedisposalis15October2013(“theeffectivedate”).


5. INVESTMENTS IN SUBSIDIARIESCompany

2013 2012 2013 2012

Name of company%

holding%

holding

Carrying amount

R

Carrying amount

R

Held directly

Tremgrowth(Pty)Limited 100.0 100.0 10 10

TremtechInvestmentHoldings(Pty)Limited* – 100.0 – 100

Tremtrade(Pty)Limited 100.0 100.0 10 10

TrematonShareIncentiveTrust 100.0 100.0 – –

Held indirectly

ClubMykonosLangebaan(Pty)Limited 100.0 100.0 – –

ClubMykonosExecutiveSales(Pty)Limited 100.0 100.0 – –

ClubMykonosLangebaanResortManagers(Pty)Limited 100.0 100.0 – –

WestCoastHolidayLifestyles(Pty)Limited 100.0 100.0 – –

ArbitragePropertyFund(Pty)Limited** 66.7 50.0 – –

Tremprop(Pty)Limited 50.0 – – –

ResiInvestmentTrust** 50.0 50.0 – –

LionPropertyInvestmentTrust 50.0 – – –

20 120

AllcompaniesareincorporatedinSouthAfrica.

* Nottradingandderegisteredduringtheyear** Previouslyajointventure

11982507ClubMykonosLangebaan(Pty)Limitedshares(being34.8%ofthesharesheldbyTrematon)havebeencededassecuritytoABSABankLimitedfortherevolvingloanfacility.

52 53



SummaryfinancialinformationforStalagmitePropertyInvestments(Pty)Limited, notadjustedforthepercentageownershipofthegroup:

Currentassets 449 999 668 243

Non-currentassets 6 181 527 6 181 572

Totalassets 6 631 526 6 849 815

Currentliabilities 328 313 328 303

Totalliabilities 328 313 328 303

Revenue – 253

Expenses (174 966) (92819)

Loss (174 966) (92566)

Shareoflossfortheyear (87 483) (46283)

The Woodstock Hub (Pty) Limited

Theinvestmentrepresentsa50%(2012:nil)interestandcomprises:

Sharesatcost 50 –

Amountowing 5 227 735 –

Postacquisitionshareofreserves (48 916) –

5 178 869 –

Theamountsowingbearsinterestatvariablerateslinkedtoprime.Therearenofixedtermsofrepayment.

SummaryfinancialinformationforTheWoodstockHub,notadjustedforthepercentageownershipofthegroup:

Currentassets 6 382 628 –

Totalassets 6 382 628 –

Currentliabilities 6 480 360 –

Totalliabilities 6 480 360 –

Revenue 60 000 –

Expenses (157 832) –

Loss (97 832) –

Shareoflossfortheyear (48 916) –

6. INVESTMENTSGroup

Note2013

R2012

R

Available-for-sale

Listedshares 16 380 000 16 120 000

Investment in Cloudberry Investments 18 (Pty) Limited 58 58

6.1 16 380 058 16 120 058

Investment in joint ventures 6.2 11 553 141 28 984 984

Investment in associate entities 6.3 86 578 964 85 582 924

Held-for-trading

Listedinvestments 6.4 2 554 551 17 174 992

Thegroups’exposuretocreditandinterestrateriskrelatedtoinvestmentsaredisclosedinnote28.

6.1 Available-for-sale investments Investments at fair value

Listed shares

4200000(2012:5200000)sharesinGrandParadeInvestmentsLimited 16 380 000 16 120 000

InvestmentinCloudberryInvestments18(Pty)Limited 58 58

16 380 058 16 120 058

4200000GrandParadeInvestmentsLimitedshareshavebeencededassecuritytoABSABankLimitedfortherevolvingloanfacility.

6.2 Investment in joint venturesStalagmitePropertyInvestments(Pty)Limited 922 162 1 009 645

TheWoodstockHub(Pty)Limited 5 178 869 –

TheVredenburgPropertyTrust 5 452 110 –

ArbitragePropertyFund(Pty)Limited – 19 293 149

ResiInvestmentTrust – 8 682 190

11 553 141 28 984 984

Theownershipinterestatthegroup’sandthejointlycontrolledentity’sreportingdatearethesame.Whentheannualreportingdateisdifferenttothegroup’s,financialinformationisobtainedasat31Augustinordertoreportonanannualbasisconsistentwiththegroup’sreportingdate.

TheVredenburgPropertyTrustandTheResiInvestmentTrusthave28Februaryreportingdates.

6. INVESTMENTS (continued)6.2 Investment in joint ventures (continued)

Group

2013R

2012R

Stalagmite Property Investments (Pty) Limited

Theinvestmentrepresentsa50%(2012:50%)interestandcomprises:

Sharesatcost 50 50

Postacquisitionshareofreserves 922 112 1 009 595

922 162 1 009 645

54 55



SummaryfinancialinformationforTheVredenburgPropertyTrust,notadjustedforthe percentageownershipofthegroup:

Currentassets 149 164 –

Non-currentassets 39 687 501 –

Totalassets 39 836 665 –

Currentliabilities 1 540 853 –

Non-currentliabilities 27 556 471 –

Totalliabilities 29 097 324 –

Revenue 6 635 618 –

Expenses (5 892 528) –

Fairvalueadjustment 12 177 014 –

Profit 12 920 104 –

Shareofprofitfortheyear* – –

* Thegroupearnednoprofitontheequityaccountedinvestmentduringtheyearasthefairvalueonthedateofacquisitionequalledtheshareofprofitatyear-end.

ThegrouphassignedtotalsuretiesinfavourofNedbankLimitedforanamountlimitedtoR6.1millioninrespectoftheaboveinvestment.Atyear-end,thetotalborrowingsofTheVredenburgPropertyTrustrelatingtothesuretiesamountedtoR27.5million.

Arbitrage Property Fund (Pty) Limited

Theinvestmentrepresentsa67.7%(2012:50%)interestandcomprises:

Linkedunitsatcost 120 120

Amountowing 23 263 746 18 137 717

Postacquisitionshareofreserves 20 211 476 1 155 312

Reclassificationofequityaccountedinvestmenttosubsidiary (43 475 342) –

– 19 293 149


6. INVESTMENTS (continued)6.2 Investment in joint ventures (continued)

Group

2013R

2012R

SummaryfinancialinformationforArbitragePropertyFund(Pty)Limited,notadjusted forthepercentageownershipofthegroup:

Currentassets – 1 243 329 Non-currentassets – 164 669 440 Totalassets – 165 912 769 Currentliabilities – 21 607 164 Non-currentliabilities – 142 005 505 Totalliabilities – 163 612 669 Revenue 15 780 147 18 389 374 Fairvalueadjustments 35 093 919 –Profitfromequityaccountedinvestment 5 452 110 –Expenses (10 553 891) (14980678)Profitbeforetax 45 772 285 3 408 696 Tax (7 649 435) (880592)Profitaftertax 38 122 850 2 528 104 Shareofprofitfortheyear 19 061 425 1 264 052

On1April2013,Trematonacquiredafurther16.7%inArbitrage.Thisincreaseditsholdingsto67.7%. Arbitrageisnolongerequityaccountedandhasbeenincludedinthegroupresultsasasubsidiaryatyear-end. Forfurtherdetailsseenote35.1–Businesscombinations.

Resi Investment TrustTheinvestmentrepresentsa50%(2012:50%)interestandcomprises:Amountowing 15 520 617 9 961 809 Post-acquisitionshareofreserves 384 928 (1279619)Reclassificationofequityaccountedinvestmenttosubsidiary (15 905 545) –

– 8 682 190


SummaryfinancialinformationforResiInvestmentTrust,notadjustedforthe percentageownershipofthegroup:Currentassets – 4 111 171 Non-currentassets – 40 554 903 Totalassets – 44 666 074 Currentliabilities – 358 771 Non-currentliabilities – 46 866 540 Totalliabilities – 47 225 311 Revenue 6 128 614 9 916 832 Fairvalueadjustments 1 819 242 –Expenses (4 279 109) (12476069)Profit/(loss)beforetax 3 668 747 (2559237)Tax (339 653) –Profit/(loss)aftertax 3 329 094 (2559237)Shareofprofitfortheyear 1 664 547 (1279619)

On1March2013,TrematonacquiredcontrolofResiInvestmentTrustbyholdingtwothirdsofthevotingrights.Therehasbeennochangeinthepercentageofownership.ResiInvestmentTrustisnolongerequityaccountedandhasbeenincludedinthegroupresultsasasubsidiaryatyear-endaspartoftheResiInvestmentGroup.Forfurtherdetailsseenote35.2–Businesscombinations.

6. INVESTMENTS (continued) 6.2 Investment in joint ventures (continued)

Group

2013R

2012R

The Vredenburg Property Trust

Theinvestmentrepresentsa50%(2012:nil)interestandcomprises:

Costatacquisition 5 452 110 –

5 452 110 –

56 57



6. INVESTMENTS (continued) Group

2013R

2012R

6.3 Investment in associate entities

WestCoastLeisure(Pty)Limited 86 578 964 85 582 924

86 578 964 85 582 924

West Coast Leisure (Pty) Limited

Theinvestmentrepresentsa29.64%(2012:29.64%)interestandcomprises:

Deemedcost 77 275 629 77 275 629

Post-acquisitionshareofreserves 9 303 335 8 307 295

86 578 964 85 582 924

SummaryfinancialinformationforWestCoastLeisure(Pty)Limited,notadjustedforthepercentageownershipofthegroup:

Currentassets 46 714 890 41 134 504


Totalassets 100 278 290 94 591 411

Currentliabilities 18 349 108 16 024 695

Totalliabilities 18 349 108 16 024 695

Revenue 134 949 533 122 364 151

Expenses (89 820 810) (82614764)

Profitbeforetax 45 128 723 39 749 387

Tax (11 771 300) (12862770)

Profitaftertax 33 357 423 26 886 617

Shareofprofitfortheyear 9 887 140 7 969 193

6.4 Held-for-trading investmentsHeld-for-trading

Listed investments

Nil(2012:3137728)sharesinDorbylLimited – 2 572 937

Nil(2012:4677437)sharesinGrandParadeInvestmentsLimited – 14 500 055

Nil(2012:60000)sharesinMazorGroupLimited – 102 000

12772753(2012:nil)sharesinDonGroupLimited 2 554 551 –

2 554 551 17 174 992

6.5 Summary of profit/(loss) from equity accounted investments (net of tax)StalagmitePropertyInvestments(Pty)Limited (87 483) (46283)

TheWoodstockHub(Pty)Limited (48 916) –

TheVredenburgPropertyTrust – –

ArbitragePropertyFund(Pty)Limited 19 061 425 1 264 052

ResiInvestmentTrust 1 664 547 (1279619)

BoulevardParkTrust* – (487677)


30 476 713 7 419 666

*Trematon’s interest in Boulevard Park Trust was sold during the prior year. The loss of R0.5 million related toTrematon’sshareofequityaccounted lossesofBoulevardParkTrust from1September2011until thedateofsale. At31August2012TrematonhassolditsentireinterestinBoulevardParkTrust.

7. DEFERRED TAXGroup Company

2013R

2012R

2013R

2012R

Deferredtaxasset 4 404 935 1 572 577 – –

Deferredtaxliability (16 140 106) (5628615) (779 879) (981201)

(11 735 171) (4056038) (779 879) (981201)

Comprises:

Temporarydifferencesarisingfromfairvalueadjustmentsonavailable-for-saleinvestments (891 434) (1430078) – –

Deferredtax(liability)/assetonfairvalueadjustmentsonheld-for-tradinginvestments (934 813) 1 186 640 – –

Temporarydifferencesarisingfromfairvalueadjustmentsonacquisitionofsubsidiary (3 764 986) (3812600) – –

Temporarydifferenceonassessedlosses 6 125 064 385 937 – –

Temporarydifferencesarisingfromrevaluationofproperty,plantandequipment (828 755) (385937) – –

Temporarydifferencesfromfairvalueadjustmentsoninvestmentproperties (11 292 624) – – –

Temporarydifferencesarisingfromoperatingleaseassets (147 623) – – –

Temporarydifferencesarisingfromfairvalueadjustmentofcompoundinstrument – – (779 879) (981201)

(11 735 171) (4056038) (779 879) (981201)

Reconciliation of deferred tax liability

Atthebeginningoftheyear (4 056 038) (4132384) (981 201) –

Fairvalueadjustmentonavailable-for-saleinvestments 538 644 547 829 – –

Fairvalueadjustmentonheld-for-tradinginvestments (2 121 453) (281521) – –

Fairvalueadjustmentsonacquisitionofsubsidiaries 47 614 (285877) – –

Increaseinassessedlosses 5 739 127 385 937 – –

Revaluationofproperty,plantandequipment (442 818) (385937) – –

Fairvalueadjustmentsoninvestmentproperties (11 292 624) – – –

Operatingleaseassets (147 623) – – –

Fairvalueadjustmentofcompoundinstrument – 95 915 201 322 (981201)

(11 735 171) (4056038) (779 879) (981201)

Thedirectorshaveassessedthatitisappropriatetorecognisethedeferredtaxassetfortaxlossesasitwillberealisedthroughfutureprofitsgeneratedbytheindividualsubsidiariesofthegroup.

58 59



8. LOAN RECEIVABLEGroup

2013R

2012R

CloudberryInvestments18(Pty)Limited 17 585 862 14 180 600

Gross 27 963 855 27 963 855

Provisionforimpairment (10 377 993) (13783255)

17 585 862 14 180 600

TheCloudberryloanisunsecuredandinterestfree.Nofixedtermsofrepaymentexist.

The group has signed limited suretyship in favour of Nedbank Limited for Cloudberry for the amount of R13.5 millionlinked to its borrowings from Nedbank Limited. Trematon in turn has total loans due from Cloudberry of R28.0 million (2012:R28.0million).

TheprovisionforimpairmentoftheloantoCloudberryisbasedonthepresentvalueoffuturecashflows,whichisestimatedwithreferencetothemarketvalueoftheunderlyinglistedinvestmentsheldbyCloudberry.

Themark-to-marketvalue,whichequalsthecarryingvalue,isbasedonthecompany’snetassetvalueatyear-end.

DuringtheyeartheprovisionforimpairmentontheCloudberryloandecreasedbyR3.4million(2012:R4.0million).Therewerenootheradjustmentstotheimpairmentaccount.

Credit quality

ThecreditquaityoftheloanbalancehasbeenassessedwithreferencetotheunderlyinglistedinvestmentsinCloudberry.

9. TRADE AND OTHER RECEIVABLESGroup Company

2013R

2012R

2013R

2012R

Tradeaccountsreceivable 4 155 136 3 106 938 278 278

Otherreceivables 134 443 269 336 – –

Deposits 5 417 556 – – –

VAT 26 866 779 718 – –

9 734 001 4 155 992 278 278

Depositsareinrespectofdepositspaidonpropertiesthathavenotbeentransferredatyear-end.

Credit quality

IncludedintradeaccountsreceivableisR2.7million(2012:R2.7million)whichrelatestounitssoldbutnotyettransferred. Thetitletotheseunitsareheldbythecompanyassecurityforthedebtuntilitisfullysettled.

Fairvalueoftradeandotherreceivablesapproximatesthecarryingvalueduetotheshort-termnaturethereof.

Thegroup’sexposuretocreditriskandimpairmentlossesrelatedtotradeandotherreceivablesaredisclosedinnote28.

10. LOANS TO/(FROM) GROUP COMPANIESCompany

2013R

2012R

Tremgrowth(Pty)Limited 94 858 911 13 313 802

TremtechInvestmentHoldings(Pty)Limited – 81 250 663

TrematonShareIncentiveTrust 23 512 500 20 000 000

Tremtrade(Pty)Limited (2 667 581) (5203052)

115 703 830 109 361 413


Currentassets 94 858 911 94 564 465

Currentliabilities (2 667 581) (5203052)

115 703 830 109 361 413

Theloanstoandfromsubsidiariesareunsecuredandinterestfree.Therearenofixedtermsofrepayment.

TheloantotheTrematonShareIncentiveTrustisunsecuredandattractsinterestatrateslinkedtoprime.Theloanisrepayablewhentheconvertibledebenturesareconvertedintoordinaryshares.

Credit quality

Thecreditquaityoftheloanbalancehasbeenassessedwithreferencetotheunderlyingnetassetsineachcompany.

Thegroup’sexposuretocreditriskisdisclosedinnote28.

11. INVENTORIESGroup

2013R

2012R

Land for development 8 998 902 9 708 199

Residentialdevelopedandundeveloped 8 218 853 9 014 896

Commercial undeveloped 780 049 693 303

IFRS3fairvalueadjustmentonresidentialundevelopedland 18 193 475 18 363 525

27 192 377 28 071 724

Residentialdevelopedunits 29 037 532 209 125

IFRS3fairvalueadjustmentonresidentialdevelopedunits 8 725 576 –

37 763 108 209 125

Other 355 200 114 979

65 310 685 28 395 828

60 61



12. CASH AND CASH EqUIVALENTSGroup Company

2013R

2012R

2013R

2012R

Bankbalances 24 543 022 31 722 623 63 123 60 414

Brokeragecashaccount 10 059 137 986 840 – –

Deposits 77 876 60 408 – –

34 680 035 32 769 871 63 123 60 414

Currentassets 34 680 035 32 769 871 63 123 60 414

34 680 035 32 769 871 63 123 60 414

ThegrouphasundrawnborrowingfacilitiesofR30million(2012:R30million)withABSABankLimited.

Thegroup’sexposuretointerestrateriskandasensitivityanalysisforfinancialassetsandliabilitiesaredisclosedin note28.

13. SHARE CAPITAL AND SHARE PREMIUMAuthorised

1000000000ordinarysharesof1centeach 10 000 000 10 000 000 10 000 000 10 000 000

821904177(2012:821904177)unissuedordinarysharesareunderthecontrolofthedirectorsintermsofaresolutionofmemberspassedatthelastannualgeneralmeeting.Thisauthorityremainsinforceuntilthenextannualgeneralmeeting.

Issued

178095823(2012:178095823)ordinarysharesof 1 cent each 1 780 958 1 780 958 1 780 958 1 780 958

Share premium 207 478 102 207 478 102 207 478 102 207 478 102

209 259 060 209 259 060 209 259 060 209 259 060

13. SHARE CAPITAL AND SHARE PREMIUM (continued)Group

2013 2012

Treasury shares

Numberoftreasurysharesheldatyear-end 1 772 771 987 771

Number of shares

Balanceatthebeginningoftheyear 177 108 052 173 821 416

Ordinarysharesissued – 3 223 278

Treasurysharesacquired (785 000) (50096)

Treasurysharesdisposed – 113 454

Balanceattheendoftheyear 176 323 052 177 108 052

Weighted number of shares


Ordinarysharesissued – 722 155

Treasurysharesacquired–weighted (567 781) (1916)

Treasurysharesdisposed–weighted – 10 849

Weightedaveragenumberofordinarysharesinissueduingtheyear 176 540 271 174 552 504

Diluted weighted average number of shares


Convertibledebenturesissuedprioryear 12 500 000 –

Convertibledebenturesissuedcurrentyear 65 068 7 035 519

Dilutedweightedaveragenumberofsharesattheendoftheyear 189 105 339 181 588 023

Duringtheyear,785000treasuryshareswerepurchasedatacostof168centspershare.

ThetreasurysharesareheldbyTremtrade(Pty)Limited,asubsidiaryofthegroup.

62 63



14. SHARE-BASED PAYMENTSGroup Company

2013R

2012R

2013R

2012R

Share-basedpayment 1 466 985 843 738 1 466 985 843 738

Equity 2 310 723 843 738 2 310 723 843 738

Reconciliationofshare-basedpaymentreserve:

Balanceatthebeginningoftheyear 843 738 – 843 738 –

Share-basedpaymentexpensefortheyear(recognisedinprofit/loss) 1 466 985 843 738 1 466 985 843 738

Balanceattheendoftheyear 2 310 723 843 738 2 310 723 843 738

Duringtheyearended31August2012,thecompanyimplementedanincentiveschemeforexecutivedirectorsandselectedemployees.Furtherdetailsregardingtheschemearecontainedinnote15.

The termsof thescheme,whichgrants to theparticipants theoption toconvert thedebentures intoordinarysharesatafixedpriceatanystageafter theexpiryof threeyears,hasgivenrisetoashare-basedpayment transaction (seenote15 forfurtherdetails).ThesharebasedpaymenttransactionhasbeenrecognisedandmeasuredintermsofIFRS2.

Detailsofthearrangementsareasfollows:

Participants: Executivedirectorsandselectedemployees

Dateofgrant: 25January2012

Numbergranted: 12500000

Vestingperiod: 3years

Participants: Executivedirectorsandselectedemployees

Dateofgrant: 13August2013

Numbergranted: 1250000

Vestingperiod: 3years

The fair value of the options granted during the year; using the Black-Scholes valuation model, was R1.2 million (2012:R4.3million).TheoptionexpensefortheyearwasR1.5million(2012:R0.8million).

Assumptionsappliedinarrivingatfairvalueofoptionsgranted:

Debentures granted in

2013

Debenturesgrantedin

2012

Priceperdebenture R2.81 R1.60

Expected volatality 36.10% 21.42%

Risk-freeinterestrate 6.87% 6.69%

Dividend yield 1.15% 1.20%

The expected volatility has been calculated with reference to the historical movement in the share price over the last 12months.

15. CONVERTIBLE DEBENTURESCompany

2013R

2012R

Debentures 20 016 104 18 116 149

Equity 17 230 821 14 611 865

Non-currentliability 1 127 351 2 097 848

Currentliability 1 657 932 1 406 436

20 016 104 18 116 149

Reconciliationofdebentures:

Balanceatthebeginningoftheyear 18 116 149 –

Debenturesissuedtoparticipants 3 512 000 20 000 000

Capitalrepaidduringtheyear (1 417 082) (705196)

Deferredtaxrecognised (194 963) (1178655)


Thetermsandconditionsoftheschemeareasfollows:

Debenturesaregrantedtoexecutivedirectorsandselectedemployees.

Intermsoftheincentivescheme,whichwasapprovedattheannualgeneralmeetingofthecompanyon25January2012,participantswereissuedconvertibledebenturesthatcanbeconvertedintoordinarysharesattheoptionoftheparticipantafteraminimumperiodofthreeyears,exercisableatthedebentureissueprice.Thevestingperiodisdeemedtobethreeyearsandthedebentureshavenoexpirydate.

ThecostofthedebenturesarecalculatedastheaveragetradingpriceofaTrematonshareoverthe20tradingdayspriortothedebenturesbeingissued.

Acorrespondingloanwasissuedtoparticipants.Thisloanwasapprovedsimultaneouslywiththeissueofdebenturesattheannualgeneralmeetingmentionedabove.

Thedebenturesandtheloancarryinterestatthesameratewhichislinkedtotheprimerateofborrowing.Theloansmustbesettledoncethedebenturesareconvertedtoshares.Theparticipantsloanswillhavethesamevalueasthedebenturestheyreceivedasdisclosedinthetablebelow.

Theconvertibledebenturesandcorrespondingloansreceivablehavebeeneliminatedonconsolidation.

Movementsinthenumberandpriceofdebenturesoutstandingareasfollows:

2013 2012

Number of debentures

Price per debenture

R

Numberofdebentures

Priceperdebenture

R

Balanceatthebeginningoftheyear 12 500 000 – – –

Debenturesissuedduringtheyear 1 250 000 2.81 12 500 000 1.60

Debenturesconvertedduringtheyear – – – –


Noneofthedebenturesareconvertibleasat31August2013(2012:nil).

64 65



15. CONVERTIBLE DEBENTURES (continued)Numberandpriceofdebenturesheldbydirectorsandselectedemployees:

2013Opening balance

Number granted

Closing balance

Price per debenture

issued during

the year R

A Groll 5 000 000 500 000 5 500 000 2.81

AJ Shapiro 5 000 000 500 000 5 500 000 2.81

ALWinkler 1 500 000 150 000 1 650 000 2.81

Otheremployees 1 000 000 100 000 1 100 000 2.81

12 500 000 1 250 000 13 750 000

2012Openingbalance

Numbergranted

Closingbalance

Priceperdebenture

issuedduring

the year R

A Groll – 5 000 000 5 000 000 1.60

AJ Shapiro – 5 000 000 5 000 000 1.60

ALWinkler – 1 500 000 1 500 000 1.60

Otheremployees – 1 000 000 1 000 000 1.60

– 12 500 000 12 500 000

2013 2012

Number of debentures

Numberofdebentures

Debenturesauthorisedforallotmentopeningbalance 14 214 373 –

Debenturesauthorisedforallotmentduringtheyear – 26 714 373

Debenturesissuedduringtheyear (1 250 000) (12500000)

Balanceavailableforallotmentattheendoftheyear 12 964 373 14 214 373

16. FAIR VALUE RESERVEGroup

2013 R

2012R

Comprises:

Fairvaluegainonavailable-for-saleinvestments 9 555 000 7 549 226

Fairvaluegainonrevaluationofproperty,plantandequipment 2 301 819 2 301 819

Taxeffectsonfairvaluegainonavailable-for-saleinvestments (2 016 615) (1309289)

Taxeffectsonrevaluationofproperty,plantandequipment (385 937) (385937)

9 454 267 8 155 819

17. LOANS PAYABLEGroup

2013R

2012R

Current portion

ABSABankLimited 712 096 –

StandardBankofSouthAfricaLimited 884 220 884 220

TheSphinxTrust 2 837 087 –

RBKPropertyManagement(Pty)Limited 4 230 225 –

8 663 628 884 220

Long-term portion

ABSABankLimited 8 617 437 –

StandardBankofSouthAfricaLimited 6 090 505 5 794 725

NedbankLimited 157 361 572 –

172 069 514 5 794 725

180 733 142 6 678 945

TheABSAloanbearsinterestlinkedtoprimeandispayableoveraperiodof10years.TheloanissecuredoverafirstcoveringmortgagebondoverErf4729,Gansbaai.

TheStandardBankloanbearsinterestatprimeandispayableoveraperiodof10years.TheloanissecuredbyafirstcoveringmortgagebondoverErf2785,Langebaan.

TheamountowingtoNedbankLimitedincludesvariousloanswhichbearinterestatrateslinkedtoprime.Repaymentsvaryoneachloan.Someloanrepaymentsareinterestonlywhereothersincludecapitalandinterest.Theloansaresecuredbyafirstcoveringmortgagebondovertherespectiveproperties.

TheloansfromTheSphinxTrustandRBKPropertyManagement(Pty)Limitedbearinterestatrateslinkedtoprime.Theloanshavenofixedtermsofrepaymentandarerecordedatamortisedcost.

InadditiontotheABSABankLimitedloan,thereisaR30.0millionfacilitywhichbearsinterestatprime.Theloanfacilityissecuredbyacessionof11982507sharesinClubMykonosLangebaan(Pty)LimitedandacessionofthePeregrinebrokerageaccountheldbyTremgrowth(Pty)Limited.

ThegrouphassignedtotalsuretiesinfavourofNedbankLimitedforanamountlimitedtoR119.7million(2012:R100.4million)inrespectoftheaboveloans.

ThegrouphassignedtotalsuretiesinfavourofStandardBankLimitedforanamountlimitedtoR8.4million(2012:R8.4million)inrespectoftheaboveloans.

Thegrouphassignedsureties in favourofABSABankLimitedforanamount limitedtoR9.8million (2012:nil) in respect oftheaboveloan.

Thegroup’sexposuretointerestrateandliquidityriskaredisclosedinnote28.

Theloansarerecordedatamortisedcostwhichapproximatesfairvalue.

66 67



18. DERIVATIVE INSTRUMENTSGroup Company

2013R

2012R

2013R

2012R

Openingbalance 1 372 819 – 1 372 819 –

Fairvalueadjustments 9 048 353 1 372 819 9 048 353 1 372 819

Settlementofderivativeinstruments (10 421 172) – (10 421 172) –

– 1 372 819 – 1 372 819

Terms and conditions of the derivative instrumentOptionholderscouldobtainupto10%of theordinaryshares inClubMykonosLangebaan (Pty)Limited (“CML”),owneddirectlyorindirectlybyTrematonCapitalInvestmentsLimited.TheexercisepricepersharewastheequivalenttoTrematon’scostpershareaftertakingintoconsiderationallothercostsandexpensesdirectlyincurredbyTrematonwithregardtotheacquisition,holdingandalienationoftheshares;andbyaddingbackanydividendsorotherdistributionsofwhatevernaturereceivedbyTrematoninrespectoftheshares.Theexercisepriceaccruedinterestatarateofprime(compoundedannually),fromthedateofpurchaseofsharesuntiltheactualexerciseoftheoption.Theoptionswereeligibletobeexercisedatanytimeonorafter31December2011.OptionholdershadtherighttoputtoTrematononorafter31December2011alloranypartoftheoptionsharesduetoorheldbytheoptionholdersatapricebasedonmark-to-marketvaluationoftheCMLshares.

On23January2013theoptionholdersexercisedtheirrightstopurchase10%oftheordinarysharesinCMLandputthemtoTrematon.ThetransactionresultedinasettlementoftheliabilityofR10.4millionwhichTrematonsettledonthatdate.

Fair value hierarchy of derivative instrumentsLevel3–fairvalueisdeterminedthroughvaluationtechniquesusingsignificantunobservableinputs.Thiscategoryincludesallinstrumentswherethevaluationtechniqueincludesinputsnotbasedonobservabledataandtheunobservableinputshaveasignificanteffectontheinstrument’svaluation.Thiscategoryincludesinstrumentsthatarevaluedbasedonquotedpricesforsimilarinstrumentswheresignificantunobservableadjustmentsorassumptionsarerequiredtoreflectdifferencesbetweentheinstruments.

Sensitivity of fair value of level 3 financial instrumentsThefairvalueoflevel3financialinstrumentsisdeterminedusingvaluationtechniqueswhichincorporateassumptionsthatarenot supportedbyprices fromobservablecurrentmarket transactions in thesame instrumentsandarenotbasedonavailableobservablemarketdata.Suchassumptionsincluderiskpremiums,liquiditydiscountrates,creditrisk,volatilitiesandcorrelations.Changesintheseassumptionscouldaffectthereportedfairvaluesofthesefinancialinstruments.

Thefairvalueoflevel3financialinstrumentsisdeterminedusingvaluationtechniqueswhichincorporateassumptionsbasedonunobservable inputsandaresubject tomanagement judgement.Althoughthegroupbelieves that itsestimatesof fairvaluesareappropriate,changingoneormoreoftheseassumptionstoreasonablypossiblealternativevaluescouldimpactthefairvalueofthefinancialinstrumentsandprofitorloss.During2012,ifthemark-to-marketvaluationofCMLshareshadincreased/decreasedby10%,withallothervariablesheldconstant,thegroupandcompany’snetprofitaftertaxwouldhavebeenR1.4millionhigher/lower.

Allgainsandlossesrecognisedinprofitorlossduringthe2012reportingperiodrelatingtolevel3financialinstrumentswereattributabletoinstrumentsstillheldatthereportingdate.

19. TRADE AND OTHER PAYABLESGroup Company

2013R

2012R

2013R

2012R

Tradepayables 4 197 759 195 087 9 910 5 947

Otherpayables 6 714 757 6 838 355 – –

VAT 392 789 1 912 – –

Accruals 364 971 92 929 – –

Income received in advance 744 796 170 817 – –

Sundrycreditors 20 269 808 20 146 971 – –

DeferredVATliability 626 076 626 076 – –

33 310 956 28 072 147 9 910 5 947

Otherpayablesconsistsofamountsowingtocreditorspreviouslyclassifiedasdebentureholderswhohavenotyettenderedtheircertificatesforpayment.

IncludedinsundrycreditorsisanamountofR19.5million(2012:R19.8million)relatingtoamountsstillowinginrespectoftheCMLSchemeofArrangementswhichwereenteredintoduring2011and2012.Thisamountrelatestothosesharespurchasedintheschemesforwhichsharecertificateshavenotyetbeenpresented.Thisbalancewilldeclineovertimeasshareholderspresenttheircertificates.

Fairvalueoftradeandotherpayablesapproximatesthecarryingvalueduetotheshorttermnaturethereof.

20. REVENUEGroup Company

2013R

2012R

2013R

2012R

Revenue

Rental income 16 509 618 6 037 484 – –

Sale of property and land 10 923 879 3 832 336 – –

Administrationfeeincome 1 319 070 1 408 320 – –

Other revenue 328 809 1 270 140 – –

29 081 376 12 548 280 – –

Investment revenue

Dividendincome–listedinvestments 1 975 487 6 016 263 – –

Dividendincome–unlistedinvestments – – 18 254 775 4 700 000

Dividendincome–deregistrationofsubsidiaries – – – 6 160 102

Interestreceived–jointventures 107 673 2 918 409 – –

Interestreceived–associate – 723 954 – –

Interestreceived–bank 1 859 270 737 562 – –

Interest–other 1 304 997 1 860 132 1 513 713 884 426

5 247 427 12 256 320 19 768 488 11 744 528

34 328 803 24 804 600 19 768 488 11 744 528

21. FINANCE COSTSBank 6 726 588 757 760 – –

Loans – 149 309 96 631 179 230

Other 365 252 50 920 – –

7 091 840 957 989 96 631 179 230

68 69



22. INCOME TAX EXPENSEGroup Company

2013R

2012R

2013R

2012R

South African normal tax

Currenttax–currentyear (241 955) (688676) – –

Currenttax–prioryearoverprovision 800 430 – – –

Currenttax–capitalgainstax (569 592) (3277015) – –

Deferred tax

Deferredtax–temporarydifferences 4 142 018 1 029 682 396 783 197 454

4 130 901 (2936009) 396 783 197 454

Group Company

2013%

2012%

2013%

2012%

Reconciliation of effective tax rate:

Statutory tax rate 28.0 28.0 28.0 28.0

Prior-yearoverprovision (1.6) – – –

Tax exempt income (26.0) (19.6) (37.7) (34.9)

Non-deductibleexpenses 6.4 19.6 5.1 9.2

Capitalgainstax (9.5) (14.8) – –

Assessedlossesutilised (5.6) – – –

Effective tax rate (8.3) 13.2 (4.6) 2.3

23. EARNINGS PER SHAREGroup

2013Cents

2012Cents

Basicearningspershare 29.2 10.8

Dilutedearningspershare 27.2 10.4

Thecalculationofbasicearningspershareisbasedontheweightedaveragenumberof176540271ordinarysharesinissueduringtheyear(2012:174552504)andaprofitattributabletoordinaryshareholdersofR51498535(2012:R18900884).

Thecalculationofdilutedearningspershareisbasedonthedilutedweightedaveragenumberof189105340ordinaryshares in issueduringtheyear (2012:181588023)andaprofitattributable toordinaryshareholdersofR51498535 (2012:R18900884).

24. HEADLINE EARNINGS PER SHAREGroup Group

2013 2012

GrossR

NetR

GrossR

NetR

Profitattributabletoequityholdersoftheparent 51 498 535 18 900 884

Gainonacquisitionofsubsidiary (3 420 316) (3 420 316) – –

Fairvalueadjustmentonpreviouslyheldinvestmentinjointventure (3 457 008) (3 457 008) – –

Fairvalueadjustmentoninvestmentproperties (18 730 171) (12 404 991) – –

Realisedprofitonavailable-for-saleinvestments (2 062 587) (1 677 502) – –

Fairvalueadjustmentswithinequityaccountedprofits (21 182 636) (17 222 748) – –

Realisedprofitonsaleofassociate – – (10348531) (7071516)

Headline earnings 13 315 970 11 829 368

Group

2013 2012

Cents Cents

Headlineearningspershare 7.5 6.8

Dilutedheadlineearningspershare 7.0 6.5

Thecalculationofheadlineearningspershareisbasedontheweightedaveragenumberof176540271ordinarysharesinissueduringtheyear(2012:174552504).

Thecalculationofdilutedheadlineearningsper share isbasedon thedilutedweightedaveragenumberof189105340ordinarysharesinissueduringtheyear(2012:181588023).

70 71



25. REMUNERATIONDirectors’ emoluments

31 August 2013

Fees for services

R

Basic salary

R

Taxable benefits

RBonuses

R

Share-based payment

RTotal

R

Executive directors

AJ Shapiro 20 000 1 820 760 14 835 142 100 586 794 2 584 489

A Groll – 1 164 240 9 956 90 600 586 794 1 851 590

ALWinkler 20 000 924 240 11 682 70 600 176 038 1 202 560


M Kaplan 328 100 – – – – 328 100

JPFisher 141 800 – – – – 141 800

AMLouw 178 700 – – – – 178 700

R Stumpf 127 800 – – – – 127 800

Total 816 400 3 909 240 36 473 303 300 1 349 626 6 415 039

Paid by subsidiaries 776 400 3 909 240 36 473 303 300 1 349 626 6 375 039

Paid by associates 40 000 – – – – 40 000

31August2012

Feesforservices

R

Basicsalary

R

Taxablebenefits

RBonuses

RTotal

R

Executive directors

AJ Shapiro 20 000 1 694 100 26 300 131 545 1 871 945

A Groll – 1 082 760 17 349 83 810 1 183 919

ALWinkler 20 000 846 900 19 761 64 155 950 816


M Kaplan 341 906 – – – 341 906

JPFisher 131 400 – – – 131 400

AMLouw 212 846 – – – 212 846

R Stumpf 117 806 – – – 117 806

Total 843 958 3 623 760 63 410 279 510 4 810 638

Paid by subsidiaries 803 958 3 623 760 63 410 279 510 4 770 638

Paid by associates 40 000 – – – 40 000

25. REMUNERATION (continued)Top three earners

InaccordancewithKingIII,wedisclosethetopthreeearnersinthegroup,excludingexecutivedirectors.

31 August 2013

Basic salary

R

Taxable benefits

RBonuses

R

Share-based payment

RTotal

R

Employee 1 650 520 26 751 51 000 58 679 786 950

Employee 2 660 000 – – – 660 000

Employee 3 388 800 – 32 400 – 421 200

Total 1 699 320 26 751 83 400 58 679 1 868 150

31August2012

Basicsalary

R

Taxablebenefits

RBonuses

RTotal

R

Employee 1 540 000 24 181 45 000 609 181

Employee 2 199 492 13 964 16 822 230 278

Employee 3 165 275 11 569 20 000 196 844

Total 904 767 49 714 81 822 1 036 303

72 73



26. CASH GENERATED/(UTILISED) IN OPERATIONSGroup Company

2013R

2012R

2013R

2012R

Profitbeforeincometax 49 735 399 22 179 727 8 603 877 8 714 296

Adjusted for:

Depreciation 797 120 598 648 – –

Equityaccountedearningsofassociatesandjointly controlledentities (30 476 713) (7419666) – –

Dividend income (1 975 487) (6016263) (18 254 775) (10860102)

Finance income (3 271 940) (6240057) (1 513 713) (884426)

Financecosts 7 091 840 957 989 96 631 179 230

Fairvalueadjustmentoninvestmentproperties (18 730 171) – – –

Fairvalueadjustmentonheld-for-tradinginvestments (4 474 412) 3 052 603 – –

Fairvalueadjustmentonderivativeinstrument 9 048 353 1 372 819 9 048 353 1 372 819

Fairvalueadjustmentonpreviouslyheldinvestmentin jointventure (3 457 008) – – –

Realisedloss/(profit)onheld-for-tradinginvestments 3 742 625 (1496971) – –

Realisedprofitonavailable-for-saleinvestments (2 062 587) – – –

Realisedprofitonsaleofassociate – (10348531) – –

Gainonacquisitionofsubsidiaries (3 420 316) – – –

Profitondisposalofnon-currentassets (1 007 850) – – –

Reversalofimpairmentofloan (3 405 262) (3986949) – –

Share-basedpaymentexpense 1 466 985 843 738 1 466 985 843 738

Straight-lineadjustmentagainstinvestmentproperties 3 704 977 – – –

Changes in working capital:

Increaseintradeandotherreceivables (4 610 668) (609658) – 9 325

Decrease/(increase)ininventory 4 258 426 (149768) – –

Increase/(decrease)intradeandotherpayables 2 139 699 (998591) 3 963 3 206

5 093 010 (8260930) (548 679) (621914)

27. TAXATION PAIDGroup

2013R

2012R

Balanceatthebeginningoftheyear (24 950) 2 380

Currenttaxcharge (11 117) (3965691)

Businesscombination (502 492) –

Balanceattheendoftheyear 120 239 24 950

(418 320) (3938361)

28.2 Liquidity risk

Thefollowingarethecontractualmaturitiesoffinancialliabilities,includingestimatedinterestpaymentsandexcludingtheimpactofnettingagreements.

Carrying amount

R

Contractual cash flows

R

Within 1 year

R2 – 5 years

R

Over 5 years

R

GROUP

2013

Non-derivative financial liabilities

Loanspayable 180 733 142 232 882 613 51 613 258 134 926 874 46 342 481

Tradeandotherpayables 31 547 295 31 547 295 31 547 295 – –

212 280 437 264 429 908 83 160 553 134 926 874 46 342 481

Guarantees* 19 600 000 19 600 000 – – –

231 880 437 284 029 908 83 160 553 134 926 874 46 342 481

2012


Loanspayable 6 678 945 8 621 145 884 220 3 536 880 4 200 045

Tradeandotherpayables 27 273 342 27 273 342 27 273 342 – –

Derivative financial liabilities

Derivativeinstrument 1 372 819 1 372 819 1 372 819 – –

35 325 106 37 267 306 29 530 381 3 536 880 4 200 045

Guarantees* 100 400 000 100 400 000 – – –

135 725 106 137 667 306 29 530 381 3 536 880 4 200 045

*Theseguaranteescomprisesureties issuedinrespectof long-termloancontractsenteredintobyinvestmentsandjointventures.

28. FINANCIAL INSTRUMENTS28.1 Credit risk

Exposuretocreditrisk

Thecarryingamountoffinancialassetsrepresentsthemaximumcreditexposure.

Themaximumexposuretocreditriskatthereportingdatewas:

Group Company

Carrying amount Carrying amount

2013R

2012R

2013R

2012R

Loansreceivable 17 585 862 14 180 600 – –

Tradeandotherreceivables 9 707 135 3 376 274 278 278

Cashandcashequivalents 34 680 035 32 769 871 63 123 60 414

Investments 5 227 735 28 099 526 – –

Loanstogroupcompanies – – 118 371 411 114 564 465

Guarantees 19 600 000 100 400 000 – –

86 800 767 178 826 271 118 434 812 114 625 157

74 75



28. FINANCIAL INSTRUMENTS (continued)28.2 Liquidity risk (continued)

Carrying amount

R

Contractual cash flows

R

Within 1 year

R2 – 5 years

R

COMPANY

2013


Tradeandotherpayables 9 910 9 910 9 910 –

Convertibledebentures 2 785 283 2 785 283 1 657 932 1 127 351

Loansfromgroupcompanies 2 667 581 2 667 581 2 667 581 –

5 462 774 5 462 774 4 335 423 1 127 351

2012


Tradeandotherpayables 5 947 5 947 5 947 –

Convertibledebentures 3 504 284 3 504 284 1 406 436 2 097 848

Loansfromgroupcompanies 5 203 052 5 203 052 5 203 052 –

Derivative financial liabilities

Derivativeinstrument 1 372 819 1 372 819 1 372 819 –

10 086 102 10 086 102 7 988 254 2 097 848

28. FINANCIAL INSTRUMENTS (continued)28.3 Market risk

28.3.1 InterestrateriskThegroupdoesnotutilisederivative instruments inorder tomanage itsexposure tomovements in interestrates.

Theexposuretointerestrateriskandtheeffectiveinterestratesonfinancialinstrumentsatreportingdateareasfollows:

Interest rate

%

Year 1carrying amount

R

2 – 5 yearscarrying amount

R

Totalcarrying amount

R

GROUP

2013

Assets

Loansreceivable Interest free 17 585 862 – 17 585 862

Tradereceivables Variable rate 9 572 692 – 9 572 692

Otherreceivables Interest free 134 443 – 134 443

Cashandcashequivalents Variable rate 34 680 035 – 34 680 035

Investments Variable rate 5 227 735 – 5 227 735

67 200 767 – 67 200 767

Liabilities

Loanspayable Variable rate 8 663 628 172 069 514 180 733 142

Tradeandotherpayables Interest free 31 547 295 – 31 547 295

40 210 923 172 069 514 212 280 437

GROUP

2012

Assets

Loansreceivable Interestfree 14 180 600 – 14 180 600

Tradereceivables Variablerate 3 106 938 – 3 106 938

Otherreceivables Interestfree 269 336 – 269 336

Cashandcashequivalents Variablerate 32 769 871 – 32 769 871

Investments Variablerate 28 099 526 – 28 099 526

78 426 271 – 78 426 271

Liabilities

Loanspayable Variablerate 884 220 5 794 725 6 678 945

Tradeandotherpayables Interestfree 27 273 342 – 27 273 342

28 157 562 5 794 725 33 952 287

76 77



28. FINANCIAL INSTRUMENTS (continued)28.3 Market risk (continued)

28.3.2 Equityrisk

Equity price sensitivity analysis

Anincreaseof10%inthepriceof listedsharesheld-for-tradingandavailable-for-saleatthereportingdatewouldhave increasedprofitor lossaftertaxandothercomprehensive incomerespectivelybytheamountsshownbelow.Adecreaseof10%willhavethesamebutoppositeeffect.Thisanalysisassumesthatallothervariablesremainconstant.Theanalysisisperformedonthesamebasisas2012.

Group

2013R

2012R

Listedshares–held-for-trading 183 928 1 236 599

Listedshares–Available-for-sale 1 332 185 1 311 040

1 516 113 2 547 639

28. FINANCIAL INSTRUMENTS (continued)28.3 Market risk (continued)

28.3.1 Interestraterisk(continued)

Interest rate

%

Year 1carrying amount

R

2 – 5 yearscarrying amount

R

Totalcarrying amount

R

COMPANY

2013

Assets

Tradereceivables Interest free 278 – 278

Cashandcashequivalents Variable rate 63 123 – 63 123

Loanstogroupcompanies Interest free 94 858 911 – 94 858 911

Loanstogroupcompanies Variable rate 23 512 500 – 23 512 500

118 434 812 – 118 434 812

Liabilities

Convertibledebentures Variable rate 2 785 283 – 2 785 283

Tradeandotherpayables Interest free 9 910 – 9 910

Loansfromgroupcompanies Interest free 2 667 581 – 2 667 581

5 462 774 – 5 462 774

COMPANY

2012

Assets

Tradereceivables Interestfree 278 – 278

Cashandcashequivalents Variablerate 60 414 – 60 414

Loanstogroupcompanies Interestfree 94 564 465 – 94 564 465

Loanstogroupcompanies Variablerate 20 000 000 – 20 000 000

114 625 157 – 114 625 157

Liabilities

Convertibledebentures Variablerate 3 504 282 – 3 504 282

Tradeandotherpayables Interestfree 5 947 – 5 947

Loansfromgroupcompanies Interestfree 5 203 052 – 5 203 052

8 713 281 – 8 713 281

Cash flow sensitivity analysis for variable rate instrumentsAnincreaseof100basispointsininterestratesatthereportingdatewouldhaveincreased/(decreased)equityandprofitorlossaftertaxbytheamountsshownbelow.Adecreaseof100basispointswillhavethesamebutoppositeeffect.Thisanalysisassumesthatallothervariablesremainconstant.Theanalysisisperformedonthesamebasisas2012.

Group Company

2013 2012 2013 2012

R R R R

Variablerateinstruments 390 674 241 892 134 003 119 204

29. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY29.1 Financial assets by category

Theaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelow:

Loans and receivables

R

Fair value through profit or

loss – held-for-

tradingR

Available-for-sale

RTotal

R

GROUP

2013

Loansreceivable 17 585 862 – – 17 585 862

Tradereceivables 9 572 692 – – 9 572 692

Otherreceivables 134 443 – – 134 443

Cashandcashequivalents 34 680 035 – – 34 680 035

Listedinvestments – 2 554 551 16 380 000 18 934 551

Investments 5 227 735 – 58 5 227 793

67 200 767 2 554 551 16 380 058 86 135 376

2012

Loansreceivable 14 180 600 – – 14 180 600

Tradereceivables 3 106 938 – – 3 106 938

Otherreceivables 269 336 – – 269 336

Cashandcashequivalents 32 769 871 – – 32 769 871

Listedinvestments – 17 174 992 16 120 000 33 294 992

Investments 28 099 526 – 58 28 099 584

78 426 271 17 174 992 16 120 058 111 721 321

78 79



29. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY (continued)29.1 Financial assets by category (continued)

Loans and receivables

R

Fair value through

profit or loss –

held-for-trading

R

Available-for-sale

RTotal

R

COMPANY

2013

Loanstogroupcompanies 118 371 411 – – 118 371 411

Tradereceivables 278 – – 278

Cashandcashequivalents 63 123 – – 63 123

118 434 812 – – 118 434 812

2012

Loanstogroupcompanies 114 564 465 – – 114 564 465

Tradereceivables 278 – – 278

Cashandcashequivalents 60 414 – – 60 414

114 625 157 – – 114 625 157

29. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY (continued)29.2 Financial liabilities by category

Theaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelow:

Financial liabilities

at fair value through

profit or lossR

Financial liabilities

at amortised cost

RTotal

R

GROUP

2013

Loanspayable – 180 733 142 180 733 142

Tradeandotherpayables – 31 547 295 31 547 295

– 212 280 437 212 280 437

2012

Loanspayable – 6 678 945 6 678 945

Derivativeinstruments 1 372 819 – 1 372 819

Tradeandotherpayables – 27 273 342 27 273 342

1 372 819 33 952 287 35 325 106

COMPANY

2013

Debentures – 2 785 283 2 785 283

Loansfromgroupcompanies – 2 667 581 2 667 581

Tradeandotherpayables – 9 910 9 910

– 5 462 774 5 462 774

2012

Derivativeinstruments 1 372 819 – 1 372 819

Debentures – 3 504 284 3 504 284

Loansfromgroupcompanies – 5 203 052 5 203 052

Tradeandotherpayables – 5 947 5 947

1 372 819 8 713 283 10 086 102

80 81



30. NET GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES (continued)30.2 Financial liabilities

Interest expense

R

Fair value adjustments

through profit and

lossR

Realised loss on

derivative instruments

R

GROUP

2013

Financialliabilitiesatamortisedcost 7 091 840 – –

Derivativeinstruments – – 9 048 353

7 091 840 – 9 048 353

2012

Financialliabilitiesatamortisedcost 957 989 – –

Derivativeinstruments – 1 372 819 –

957 989 1 372 819 –

COMPANY

2013


Derivativeinstruments – – 9 048 353

96 631 – 9 048 353

2012


Derivativeinstruments – 1 372 819 –

179 230 1 372 819 –

30. NET GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES30.1 Financial assets

Interest income

R


through profit and

lossR


through other comprehensive

incomeR

Reclassification from equity to profit and loss

R

Dividend income

R

Realised profit/

(loss) on investments

R

Impairment reversal

R

GROUP

2013

Available-for-saleinvestments – – 4 068 361 (2 062 587) 1 040 000 2 062 587 –

Held-for-tradinginvestments – 4 474 412 – – 935 487 (3 742 625) –

Loansandreceivables 3 164 267 – – – – – 3 405 262

3 164 267 4 474 412 4 068 361 (2 062 587) 1 975 487 (1 680 038) 3 405 262

2012

Available-for-saleinvestments – – 1 508 000 – 3 640 000 – –

Held-for-tradinginvestments – (3052603) – – 2 376 263 1 496 971 –

Loansandreceivables 2 597 694 – – – – – 3 986 949

2 597 694 (3052603) 1 508 000 – 6 016 263 1 496 971 3 986 949

COMPANY

2013

Loansandreceivables 1 513 713 – – – – – –

1 513 713 – – – – – –

2012

Loansandreceivables 884 426 – – – – – –

884 426 – – – – – –

82 83



31. SEGMENTAL INFORMATIONThegroupcomprisesthefollowingmainreportableoperatingsegments:

GamingR

Property investments

RUnallocated

REliminations

RTotal

R

2013

Revenue 3 294 557 31 034 246 – – 34 328 803

Intersegmentrevenue 8 891 180 18 254 775 – (27 145 955) –

Profitfromequityaccountedinvestments 9 887 140 20 589 573 – – 30 476 713

Gainonacquisitionofsubsidiaries – 3 420 316 – – 3 420 316

Fairvalueadjustmentonpreviouslyheldinvestmentinjointventure – 3 457 008 – – 3 457 008

Fairvalueadjustmentsonheld-for-tradinginvestments (1 521 237) – 5 995 649 – 4 474 412

Fairvalueadjustmentsoninvestmentproperties – 18 730 171 – – 18 730 171

Fairvalueadjustmentonderivativeinstrument (1 897 468) (7 150 885) – – (9 048 353)

Realisedlossonsaleofheld-for-tradinginvestments – – (3 742 625) – (3 742 625)

Reversalofimpairmentonloan – – 3 405 262 – 3 405 262

Interestexpense – (7 091 840) – – (7 091 840)

Depreciation – (797 120) – – (797 120)

Staffcosts – (11 070 025) – – (11 070 025)

Netincomebeforetax 18 654 172 25 422 941 5 658 286 – 49 735 399

Taxation – 4 130 901 – – 4 130 901

Net income for the year 18 654 172 29 553 842 5 658 286 – 53 866 300

Othercomprehensiveincome 1 298 448 – – – 1 298 448

Totalassets 102 958 964 390 055 452 20 140 471 – 513 154 887

Non-currentassetsheld-for-sale – 146 402 632 – – 146 402 632

Totalliabilities – 230 305 874 – – 230 305 874

Equityaccountedinvestments 86 578 964 11 553 141 – – 98 132 105

Additionstonon-currentassets – 221 688 365 – – 221 688 365

31. SEGMENTAL INFORMATION (continued)

GamingR

Propertyinvestments

RUnallocated

REliminations

RTotal

R

2012

Revenue 6 015 435 18 788 337 828 – 24 804 600

Intersegmentrevenue – 8 603 023 – (8603023) –

Profit/(loss)fromequityaccountedinvestments 7 969 193 (549527) – – 7 419 666

Fairvalueadjustmentsonheld-for-tradinginvestments 1 740 392 – (4792995) – (3052603)

Reversalofimpairmentonloan – 3 986 949 – – 3 986 949

Realisedprofitonsaleofassociate – 10 348 531 – – 10 348 531

Interestexpense – (957989) – – (957989)

Depreciation – (598648) – – (598648)

Staffcosts – (6526538) – – (6526538)

Netincome/(loss)beforetax 15 725 020 11 246 874 (4792167) – 22 179 727

Taxation – (2936009) – – (2936009)

Netincome/(loss)fortheyear 15 725 020 8 310 865 (4792167) – 19 243 718

Othercomprehensiveincome 940 599 1 915 899 – – 2 856 498

Totalassets 116 202 979 137 659 823 2 674 995 – 256 537 797

Totalliabilities – 41 779 626 – – 41 779 626

Equityaccountedinvestments 85 582 924 28 984 984 – – 114 567 908

Additionstonon-currentassets – 12 024 684 – – 12 024 684

Identification of reportible segments

Thebasisreportedbythegroupisinaccordancewiththeaccountingpoliciesadoptedforthepreparingandpresentingoftheconsolidatedfinancialstatements.Segmentrevenueexcludesvalueaddedtaxationandintersegmentrevenue,intersegmentrevenueispresentedasaseparatelineitemandeliminatedatconsolidation.

Segment expenses include direct and allocated expenses. Depreciation have been allocated to the segments to which theyrelate.

Segmentassetscompriseallassetsofthedifferentsegmentsthatareemployedbythesegmentandthateitheraredirectlyattributabletothesegment,orcanbeallocatedtothesegmentonareasonablebasis.

Reportible segments

Gaming

Revenueinthissegmentisderivedfromequityaccountedprofitsanddividendsfromthegroup’sinvestmentinWestCoastLeisure(Pty)Limitedanditslistedinvestmentsinthegamingindustry.Seenote6.1fordetailsonlistedinvestmentsinthegamingsector.

Property investments

Revenue from this segment isderived fromsaleof investmentproperty, rental incomeon investmentproperty, fair valuegainsonpropertyinvestmentsanddividendincomefromreportingentitieswithinthesegments.Dividendincomewithinthereportiblesegmentsispresentedintheintersegmentrevenuelineitemonthefaceofthesegmentreport.

Geographical informationThegrouphaselectedthattheentireSouthAfricanregionrepresentsasinglegeographicalarea.

84 85



32. MINIMUM LEASE PAYMENTS RECEIVABLEGroup

2013R

2012R

Receivablewithinoneyear 8 758 765 1 133 342

Receivablewithintwotofiveyears 9 847 081 2 315 394

Receivablebeyondfiveyears 5 847 534 –

24 453 380 3 448 736

Minimumleasepaymentscomprisecontractualrentalincome,excludingthestraight-lineleaseadjustments,andoperatingexpenserecoveriesdueintermsofsignedleaseagreementsoninvestmentproperties.

33. OPERATING LEASE COMMITMENTSThegrouphasnosignificantcommitmentstooperatingleases.

34. RELATED PARTIESIdentity of related parties

Investmentsinsubsidiaries–refertonote5;

Investmentsinjointventuresandassociates–refertonote6;

Loansto/(from)groupcompanies–refertonote10;and

Directors–refertotheDirectors’Report.

Entitycontrolledbycommondirector–ZerbansCakeandCoffeeShopCC

Material related party transactions

Group

2013R

2012R

Profitfromequityaccountedassociatesandjointventures 30 476 713 7 419 666

Interestreceivedfromequityaccountedassociatesandjointventures:

BoulevardParkTrust - 723 954

ArbitragePropertyFund(Pty)Limited - 1 897 880

ResiInvestmentTrust 107 673 1 020 529

Dividendreceivedfromequityaccountedassociate:


Administrationfees(paid)/received:

ZerbansCakeandCoffeeShopCC (1 134 169) (967868)

ArbitragePropertyFund(Pty)Limited 435 330 156 000


Directors’emoluments–refertonote25

Directors’interests–refertoDirectors’Report.

35. BUSINESS COMBINATIONS35.1 Arbitrage Property Fund (Pty) Limited (“Arbitrage”)

On31March2013,thegroupobtainedacontrollinginterestofArbitragebyacquiringanadditional16.7%oftheirsharecapitalforatotalcashconsiderationofR3.5million.Theacquisitionhasresultedinanincreaseshareholdingto66.7%inArbitrage.

Theacquisitionwasmadeintermofashareholdersagreementwherebyoneofourjointventurepartnersdecidedtosellhisinterestinthecompany.Wefeltthatthecompanywasplacedinastrongpositiontotakeadvantageofanyfutureoportunitiesandthatthereisfuturegrowthinthebusiness.Thisresultedinuspurchasingtheadditionalshares.

Detailsofthebusinesscombinationareasfollows:

Group

2013R

2012R

Amountsettledincash 3 451 585 –

Fairvalueofpreviouslyheldinvestment 20 211 476 –

Fairvalueofconsiderationtransferred 23 663 061 –

Non-controllinginterest 13 339 574 –

Recognised amounts of identifiable net assets:

Investmentproperties 210 734 778 –

Investmentinjointventure 5 452 110 –

Deferredleaseasset 5 336 875 –

Cashandcashequivalents 2 899 745 –

Long-termloans (144 306 649) –

Deferred tax (8 027 536) –

Otherliabilities (4 546 537) –

Shareholderloans (24 827 727) –

Accountspayable (1 098 585) –

Tenantdeposits (691 031) –

Taxation (502 492) –

Netidentifiableassetsandliabilities 40 422 951 –

Gainonchangeinshareholding(bargainpurchase) (3 420 316) –

Previously held investmentOntheacquisitiondate, thegroup’s50%investment inArbitrage,previouslyaccountedforasanequityaccountedinvestmenthasbeenremeasuredtofairvalue.ThepreviouslyheldinvestmentisconsideredpartofwhatwasgivenupbythegrouptoobtaincontrolofArbitrage.

Non-controlling interestThenon-controllinginterestinArbitrageismeasuredattheirshareofthefairvalueoftheassetsandliabilitiesoftheacquireeatacquisitiondate.

Bargain purchase from additional shares acquiredAbargainpurchaseofR3.4millionwasrecognisedontheacquisitiondate.Thishasbeenpresentedasaseparatelineitemintheconsolidatedstatementofcomprehensiveincome.

Arbitrage’s contribution to the group resultsArbitrage has contributed R6.8 million and R3.6 million to the group’s revenues and profit, respectively from theacquisition date to 31 August 2013. Had the acquisition occurred on 1 September 2012, the group’s revenue fortheperiodto31August2013wouldhavebeenR49.7millionandthegroup’sprofitfortheperiodwouldhavebeen R79.4million.

86 87



35. BUSINESS COMBINATIONS (continued)35.2 The Resi Investment Group (“Resi”)

On1March2013,thegroupobtainedacontrollinginterestofTremprop(Pty)Limited,LionPropertyInvestmentTrustandResiInvestmentTrust,togetherreferredtoasTheResiInvestmentGroupbyholdingtwothirdsofthevotingrightsinthegroup.Therehasbeennoincreaseintheshareholdingwhichremainsat50%.

Detailsofthebusinesscombinationareasfollows:

Group

2013R

2012R

Amountsettledincash – –

Fairvalueofpreviouslyheldinvestment 3 847 317 –

Fairvalueofconsiderationtransferred 3 847 317 –

Non-controllinginterest 3 847 317 –

Recognisedamountsofidentifiablenetassets:

Investmentproperties 6 421 050 –

Inventory 41 343 333 –

Accountsreceivable 967 341 –

Cashandcashequivalents 63 629 –

Long-termloans (17 294 860) –

Deferred tax (2 782 753) –

Shareholderloans (19 713 612) –

Accountspayable (1 309 494) –

Netidentifiableassetsandliabilities 7 694 634 –

Gainonchangeinshareholding – –

Previously held investmentOn the acquisition date, the group’s 50% investment in Resi, previously accounted for as an equityaccounted investment has been remeasured to fair value. The previously held investment is considered part ofwhatwasgivenupbythegrouptoobtaincontrolofResi.

Non-controlling interestThenon-controllinginterestinResiismeasuredattheirshareofthefairvalueoftheassetsandliabilitiesoftheacquireeatacquisitiondate.

Fair value adjustment on remeasurement of investmentAfairvaluegainofR3.5millionwasrecognisedontheacquisitiondate.Thishasbeenpresentedasaseparatelineitemintheconsolidatedstatementofcomprehensiveincome.

Resi’s contribution to the group resultsResi has contributed R4.3 million to the group’s revenues and a loss of R0.8 million to the group’s profit from the acquisition date to 31 August 2013. Had the acquisition occurred on 1 September 2012, the group’s revenue for theperiod to 31August 2013wouldhavebeenR36.3million and thegroup’sprofit for theperiodwouldhave beenR58.2million.

36. COMPARATIVE FIGURESThepresentationof the comparative statementsof comprehensive incomehasbeen changed to conform to that of thecurrentyearstatementsofcomprehensiveincome(bynature)inordertoimproveclarityandcomparability.Thechangeinpresentationhasresultedinthedisclosureofadditionalitems,buthasnotresultedinamaterialchangetotherevenueorprofitbeforeincometaxlineitems.

Shareholder spreadNumber of

shareholders %Number of

shares %

1–1000shares 91 21.11 54 921 0.03

1001–10000shares 200 46.40 902 530 0.50

10001–100000shares 84 19.49 3 155 416 1.77

100001–1000000shares 38 8.82 12 814 296 7.20

1000001sharesandover 18 4.18 161 168 660 90.50

Total 431 100.00 178 095 823 100.00

Distribution of shareholders

Banks 3 0.70 1 530 500 0.86

Closecorporations 5 1.16 91 072 0.05

Endowmentfunds 2 0.46 500 700 0.28

Investmentcompany 1 0.23 60 800 0.03

Individuals 346 80.28 11 065 485 6.22

Mutualfunds 3 0.70 931 715 0.52

Nomineesandtrusts 44 10.21 140 740 618 79.03

Privatecompanies 27 6.26 23 174 933 13.01

Total 431 100.00 178 095 823 100.00

Public/Non-public shareholders

Non-publicshareholders 16 3.72 137 608 224 77.27

Directorsandassociatesofthecompany 8 1.86 64 531 069 30.39

Strategicholdings(morethan10%) 8 1.86 73 077 155 46.88

Publicshareholders 415 96.28 40 487 599 22.73

Total 431 100.00 178 095 823 100.00

Registered shareholders holding 5% or more

TheArmchairTrust 44 012 392 24.71

TheSuikerbosTrust 43 450 000 24.40

TheFynvestTrust 21 007 160 11.80

Buff-Shares(Pty)Limited 11 019 803 6.19

TheSalveteTrust 9 250 243 5.19

Total 128 739 598 72.29

ANALYSIS OF SHAREHOLDERSRegister date: 31 August 2013

Issued share capital: 178 095 823 shares

88 89TremaTon І Integrated Annual Report 2013 TremaTon І Integrated Annual Report 2013

NOTICE OF ANNUAL GENERAL MEETINGfor the year ended 31 August 2013

NOTICE IS HEREBY GIVEN THAT THE ANNUAL GENERAL MEETING (“AGM”) OF THE MEMBERS OF TREMATON CAPITAL INVESTMENTS LIMITED (“TREMATON” OR “THE COMPANY”) WILL BE HELD IN THE BOARDROOM ON THE FIRST FLOOR, THE HUDSON, 30 HUDSON STREET, CAPE TOWN ON 29 JANUARY 2014, AT 10:00 TO CONDUCT THE UNDERMENTIONED BUSINESS AND FOR THE UNDERMENTIONED ORDINARY AND SPECIAL RESOLUTIONS TO BE PROPOSED:

Recorddatetoreceivethenoticeofannualgeneralmeeting Friday, 22November2013Lastdatetotradetobeeligibletovote Friday, 17January2014Recorddatetobeeligibletovote Friday, 24January2014Lastdateforlodgingformsofproxy Monday,27January2014

Allmeetingparticipantswillberequiredtoprovideidentificationreasonablysatisfactorytothechairmanofthemeeting.

For the avoidance of doubt, the expression “Act” or “Companies Act 2008” as used in this notice means the Companies Act, No. 71 of 2008, as amended, which came into operation on 1 May 2011, the expression “JSE” as used herein means the JSE Limited, the expression “Listings Requirements” as used herein refers to the JSE Listings Requirements and the expression “MOI” or “Memorandum of Incorporation” refers to the Memorandum of Incorporation of the company. In terms of the Companies Act No. 71 of 2008, as amended, of association and articles of association of the company (as those terms were contemplated in the previous Companies Act) was automatically converted to the MOI with effect from 1 May 2011.

SECTION A – ORDINARY RESOLUTIONSTo consider, and if deemed fit, pass, the undermentioned ordinary resolutions numbers 1 to 7 with or without modification. In order to be adopted:

• ordinary resolutions numbers 1 – 5 and 7, require the support of more than 50% of the total number of votes exercisable by shareholders present or represented by proxy at the meeting; and

• ordinary resolution number 6 requires the support of at least 75% of the total number of votes exercisable by shareholders present or represented by proxy at the meeting.

1. Ordinary Resolution Number 1: The adoption of the annual financial statements

“Toreceiveandadopttheannualfinancialstatementsfortheyearended31August2013.”

2. Ordinary Resolution Number 2: The re-election of directors

“Tore-electthefollowingdirectorswho,intermsofthecompany’sMOI,retirebyrotationattheAGM,but,beingeligible,offerthemselvesforre-election.

2.1MrMKaplan;and

2.2MrJPFisher.”

Briefbiographiesoftheaforementioneddirectorsareincludedonpages8to9oftheintegratedannualreportinwhichthisnoticeisincorporated(“report”).

Theappointmentsnumbered2.1and2.2constituteseparateordinaryresolutionsandwillbeconsideredbyseparatevotes.

3. Ordinary Resolution Number 3: The reappointment of the independent auditor and designated auditor

“ToreappointMazarsas the independentauditorsof thegroup (asdefined in theListingsRequirements)andtoreappointDuncanDollman,beingapartnerofMazars,astheindividualdesignatedauditorofthegroupwhowillundertaketheauditofthegroupfortheensuingyear.”

4. Ordinary Resolution Number 4: The appointment of the audit and risk committee for the ensuing year

“Toelectthefollowingdirectors,whoareeligibleandofferthemselvesforelection,totheauditandriskcommitteefortheensuingyear,asrecommendedbytheboard:

4.1Mr.MKaplan;

4.2Mr.AMLouw;and

4.3Mr.JPFisher.”

Briefbiographiesoftheaforementioneddirectorsareincludedonpages8to9ofthisreport.

Theappointmentsnumbered4.1to4.3constituteseparateordinaryresolutionsandwillbeconsideredbyseparatevotes.

5. Ordinary Resolution Number 5: Endorsement of remuneration policy

“Toendorse, throughanon-bindingadvisoryvote, recommendedby theKingCodeofGovernance forSouthAfrica2009(KingIII)toascertaintheshareholders’viewsonthecompany’sremunerationpolicyanditsimplementation.Thecompany’sRemunerationReportissetoutonpage17ofthisreport.”

6. Ordinary Resolution Number 6: General authority to issue securities for cash

“Toauthorisethedirectorsofthecompany,bywayofageneralauthority,toallotandissueforcashanyorallofitsauthorisedbut unissuedordinary shares and to issue anyoptions/convertible securities that are convertible into an existing classofequitysecuritiesinthesharecapitalofthecompanyastheyintheirdiscretionmaydeemfit,withoutrestriction,subjecttotheprovisionsoftheListingsRequirements,theActandtheMOIofthecompany,andprovidedfurtherthat:

(a) theapprovalshallbevaliduntilthedateofthenextannualgeneralmeeting,provideditshallnotextendbeyondfifteenmonthsfromthedateofthisresolution;

(b) suchsharesmaynotinanyonefinancialyearintheaggregateexceed15%ofthecompany’sissuedshares,thenumberthatmaybe issuedor sold, as thecasemaybe,beingdetermined inaccordancewith sub-paragraph5.52(c)of theListingsRequirements;

(c) after the company has issued shares in terms of this general authority representing, on a cumulative basiswithin afinancialyear,5%ormoreofthenumberofsharesinissuepriortothatissue,thecompanywillpublishanannouncementcontainingfulldetailsoftheissue,including:

• thenumberofsharesissued;

• theaveragediscounttotheweightedaveragetradedpriceofthesharesoverthe30businessdayspriortothedatethatthepriceoftheissuewasdeterminedoragreedbythedirectors;and

• theeffectsoftheissueonthenetassetvaluepershare,nettangibleassetvaluepershare,earningspershare,headlineearningspershare,anddilutedearningsandheadlineearningspershare.

(d) indeterminingthepriceatwhichanissueofsharesmaybemadeintermsofthisauthority,themaximumdiscountatwhichsuchsharesmaybeissuedwillbe10%oftheweightedaveragetradedpriceontheJSEofthosesharesoverthe30businessdayspriortothedatethatthepriceoftheissueisdeterminedoragreedbetweentheissuerandthepartysubscribingforthesecurities.TheJSEshouldbeconsultedforarulingifthecompany’sshareshavenottradedinsuch30-businessdayperiod;

(e) any such issuewill only bemade to public shareholders as defined in the ListingsRequirements and not to related parties;and

(f) theshares,whicharethesubjectoftheissueforcash,willbeofaclassalreadyinissue,orwherethisisnotthecase,willbelimitedtosuchsharesorrightsthatareconvertibletoaclassalreadyinissue.”

Explanatory NoteThereasonforthisordinaryresolutionis,andtheeffectthereofwillbetoauthorisethedirectorstoallotandissue,forcash,anyofthecompany’sunissuedordinaryshares,astheyintheirdiscretiondeemfit,subjecttotheapplicableprovisionsoftheListingsRequirements,theAct,theMOIandthisresolution.

Asmentionedabove,intermsoftheListingsRequirements,thisordinaryresolutionsrequiresthesupportofatleast75%ofthetotalnumberofvotesexercisablebyshareholderspresentorrepresentedbyproxyatthemeeting.

7. Ordinary Resolution Number 7 – Directors to implement resolutions

“Toauthoriseeachandeverydirectorofthecompanytodoallsuchthingsandsignalldocumentsandtakeallsuchactionastheyconsidernecessarytogiveeffecttoandimplementtheordinaryandspecialresolutionsassetoutinthisnotice.”

SECTION B – SPECIAL RESOLUTIONSToconsiderandifdeemedfit,pass,theundermentionedSpecialResolutionnumbers1to6,withorwithoutmodification.Inordertobeadoptedtheseresolutionsrequirethesupportofatleast75%ofthetotalnumberofvotesexercisablebyshareholderspresentorrepresentedbyproxyatthemeeting:

8. Special Resolution Number 1: Financial assistance for subscription of securities

“Toauthorisethedirectorsofthecompany,intermsofsection44oftheAct,toprovidedirectorindirectfinancialassistancebywayofloans,guarantees,theprovisionofsecurityorotherwisetoanyperson(asdefinedintheAct)forthepurposesof,or inconnectionwith,thesubscriptionofanyoption,oranysecurities(assuchtermisdefinedintheAct), issuedortobeissuedbythecompanyorarelatedorinterrelatedcompany,orforthepurchaseofanysecuritiesofthecompanyorarelatedorinterrelatedcompany.”

TREMATON CAPITAL INVESTMENT(IncorporatedintheRepublicofSouthAfrica)(Registrationnumber1997/008691/06)Share code: TMT ISIN: ZAE000013991(“Trematon”or“thecompany”)



Explanatory NoteThereasonforthisspecialresolutionis,andtheeffectthereofwillbetograntthedirectorsofthecompanytheauthoritytocausethecompanytoprovidedirectorindirectfinancialassistancetoanypersonascontemplatedinsection44oftheAct.

9. Special Resolution Number 2: Financial assistance

“Toauthorisethedirectorsofthecompany,intermsofsection45oftheAct,tocausethecompanytoprovideanydirectorindirectfinancialassistancetoanydirectororprescribedofficerofthecompanyorofarelatedorinterrelatedcompany,ortoarelatedorinterrelatedcompanyorcorporation,ortoamemberofarelatedorinterrelatedcorporation,ortoaperson(asdefinedintheAct)relatedtoanysuchcompany(includingthecompany),corporation,director,prescribedofficerormember.”

Explanatory NoteThereasonforthisspecialresolutionis,andtheeffectthereofwillbe,tograntthedirectorsofthecompanytheauthoritytocausethecompanytoprovidefinancialassistancetoanydirectororprescribedofficerofthecompanyorofarelatedorinterrelatedcompany,ortoarelatedorinterrelatedcompanyorcorporation,ortoamemberofarelatedorinterrelatedcorporation,ortoapersonrelatedtoanysuchcompany(includingthecompany),corporation,director,prescribedofficerormember,ascontemplatedinsection45oftheAct.

10. Special Resolution Number 3: General authority to repurchase shares

“Toauthorisethecompanyoranyofitssubsidiariestorepurchaseorpurchase,asthecasemaybe,ordinarysharesissuedbythecompanyonsuchtermsandconditionsandinsuchamountsasthedirectorsofthecompanymaydecide,butsubjectalwaystotheprovisionsoftheAct,theMOItheListingsRequirementsandthefollowingfurtherlimitations:

(i) thattherepurchaseofsharesbeeffectedthroughtheorderbookoperatedbytheJSEtradingsystemandbedonewithoutanypriorunderstandingorarrangementbetweenthecompanyandthecounterparty(reportedtradesareprohibited);

(ii) thatthisauthorityshallnotextendbeyond15monthsfromthedateofthisresolutionorthedateofthenextannualgeneralmeeting,whicheveristheearlierdate;

(iii) thatanyauthorisationtheretoisgivenbytheMOI;

(iv) thatanannouncementbemadegivingsuchdetailsasmayberequiredintermsoftheListingsRequirementswhenthecompany,oranysubsidiaryorsubsidiariesofthecompanycollectively,hascumulativelyrepurchased3%oftheinitialnumber(thenumberofthatclassofsharesinissueatthetimethatthegeneralauthorityisgranted)oftherelevantclassofsecuritiesandforeach3%inaggregateoftheinitialnumberofthatclassacquiredthereafter;

(v) atanyonetime,thecompanyoranysubsidiarymayonlyappointoneagenttoeffectanyrepurchaseonbehalfofthecompanyoranysubsidiary,asthecasemaybe;

(vi) the repurchase of shares will not take place during a prohibited period as defined by the Listings Requirementsunlessarepurchaseprogramme,fulldetailsofwhicharedisclosed inanannouncementtoshareholderspriortothecommencementoftheprohibitedperiod,isinplacewherethedatesandquantitiesofsharestobetradedduringtherelevantperiodarefixed(notsubjecttoanyvariation);

(vii) therepurchaseofsharesshallnot,intheaggregate,inanyonefinancialyear,exceed20%ofthecompany’sissuedsharecapitalatthetimethisauthorityisgiven;providedthatasubsidiary,orsubsidiariesofthecompanycollectively,shallnotholdinexcessof10%ofthenumberofsharesissuedbythecompany;

(viii) therepurchaseofsharesmaynotbemadeatapricegreaterthan10%abovetheweightedaveragetradedpriceofthemarketvalueofthesharesasdeterminedoverthefivebusinessdaysimmediatelyprecedingthedateonwhichthetransactionwaseffected.TheJSEshouldbeconsultedforarulingifthecompany’sshareshavenottradedinsuchfivebusinessdayperiod;

(ix) priortoenteringthemarkettoproceedwiththerepurchase,theboardofthecompany,byresolutionauthorisingtherepurchasehasappliedthesolvencyandliquiditytestassetoutinsection4oftheActandthatsincethetestwasdone,therehavebeennomaterialchangestothefinancialpositionofthegroup.”

Explanatory NoteThereasonforthisspecialresolutionis,andtheeffectthereofwillbe,togrant,intermsoftheprovisionsoftheActandtheListingsRequirements,andsubjecttothetermsandconditionsembodiedinthisspecialresolution,ageneralauthoritytothedirectorstoapprovetheacquisitionbythecompanyoranyofitssubsidiariesofthecompany’sownshares,whichauthorityshallbeusedbythedirectorsattheirdiscretionprovidedthatsuchauthorityshallnotextendbeyond15monthsofthedateofthisAGM.

DISCLOSURES REqUIRED IN TERMS OF THE LISTINGS REqUIREMENTSIntermsoftheListingsRequirements,thefollowingdisclosuresarerequiredwithreferencetotherepurchaseofthecompany’ssharesassetoutinSpecialResolutionNumber3above:

Statement of directorsAs at the date of this report the company’s directors undertake that, after considering the effect of themaximum repurchasepermitted,theywillnotimplementanysuchrepurchaseunlesstheprovisionsofsections4and48oftheActwillbecompliedwithandforaperiodof12monthsafterthedateofanyresolutionofthedirectorsauthorisingsuchgeneralrepurchase:

(i) thecompanyandthegroupwillbeable,intheordinarycourseofbusiness,topayitsdebts;

(ii) theassetsofthecompanyandthegroupwillbeinexcessoftheliabilitiesofthecompanyandthegroup,recognisedandmeasuredinaccordancewithInternationalFinancialReportingStandards;

(iii) thesharecapitalandreservesofthecompanyandthegroupwillbeadequateforordinarybusinesspurposes;

(iv) theworkingcapitalresourcesofthecompanyandthegroupwillbeadequateforordinarybusinesspurposes;

(v) thecompanywillprovideitssponsorwithalldocumentationasrequiredintheListingsRequirements,andwillnotcommenceanyrepurchaseuntilthesponsorhassignedoffontheadequacyofthecompanyandthegroup’sworkingcapital,advisedtheJSEaccordinglyandtheJSEhasapprovedthisdocumentation;

(vi) thecompanyandthegrouphascompliedwiththeapplicableprovisionsoftheActandtheListingsRequirements.

Litigation statementOtherthandisclosedoraccountedforinthisreport,thedirectorsofthecompany,whosenamesaregivenonpages8to9ofthisreport,arenotawareofanylegalorarbitrationproceedings,pendingorthreatenedagainstthegroup,whichmayhaveorhavehad,inthe12monthsprecedingthedateofthisnoticeofannualgeneralmeeting,amaterialeffectonthegroup’sfinancialposition.

Directors’ responsibility statementThedirectors,whosenamesaregivenonpages8and9of this report,collectivelyand individually,accept full responsibility for theaccuracyoftheinformationpertainingtotheabovespecialresolutionandcertifythattothebestoftheirknowledgeandbelieftherearenofactsthathavebeenomittedwhichwouldmakeanystatementfalseormisleading,andthatallreasonableenquiriestoascertainsuchfactshavebeenmadeandthattheabovespecialresolutioncontainsallinformationrequiredbylawandtheListingsRequirements.

Material changesOtherthanthefactsanddevelopmentsreportedoninthisreport,therehavebeennomaterialchangesintheaffairs,financialortradingpositionofthegroupsincethesignaturedateofthisreportandthepostingdatethereof.

ThefollowingfurtherdisclosuresrequiredintermsoftheListingsRequirementsaresetoutinaccordancewiththereferencepagesinthereportofwhichthisnoticeformspart:

Directorsandmanagement(referpages8to9)

Majorshareholdersofthecompany(referpage87)

Directors’interestsinthecompany’sshares(referpage26)

Sharecapital(referpages60and61)

11. Special Resolution Number 4: The authority to pay non-executive directors’ fees

“Thatthenon-executivedirectors’(whosefurtherdetailsanddesignationsaresetoutonpages8and9ofthereport)feespaidfortheperiodended31August2013,assetoutonpage70ofthisreport,beandareherebyapproved.

Further,thatthenon-executivedirector’sfeespayablefortheperiodfrom1September2013until31August2014beandareherebyapproved:

Name 2014 2013

M Kaplan R294 000 R272 400

JPFisher R133 000 R123 000

AMLouw R133 000 R123 000

R Stumpf R133 000 R123 000


Explanatory NoteThe reason for thisspecial resolution is,and theeffect thereofwillbe, togrant thecompany theauthority topay fees tonon-executivedirectorsfortheirservicesasdirectorsintermsofsection66oftheAct.Furthermore,intermsoftheActandKingIII,remunerationpayabletonon-executivedirectorsshouldbeapprovedbyshareholdersinadvanceorwithintheprevioustwoyears.

SECTION C – TO TRANSACT SUCH OTHER BUSINESS (IF ANY) AS MAY BE TRANSACTED AT AN ANNUAL GENERAL MEETINGEntitlement to attend and vote at the annual general meeting in person or by proxy– EquitysecuritiesheldbyasharetrustorschemewillnothavetheirvotesattheAGMtakenintoaccountforthepurposesof

resolutionspassedintermsoftheJSEListingsRequirements.

– Unlistedsecurities(ifapplicable)andsharesheldastreasurysharesmaynotvote.

Certificated and dematerialised shareholders with “own name” registrationAmemberentitledtoattendandvoteattheAGMisentitledtoappointaproxytoattend,speakandvoteinhis/herplace.Theproxyneednotbeamemberofthecompany.Proxyformsshouldbeforwardedtoreachthetransfersecretariesortheregisteredofficeofthecompanyatleast48hoursbeforethecommencementoftheAGM(excludingweekendsandpublicholidays).PresentationofsuitableidentificationbytheproxywhenregisteringhisattendanceonthedayoftheAGMwillberequired.

Dematerialised shareholders, other than with “own name” registrationShareholderswhohavealreadydematerialised their sharesother thanwith “ownname” registration,must advise theirCentralSecuritiesDepositoryParticipant(“CSDP”)orbrokeroftheirvotinginstructionsiftheyareunabletoattendtheAGMbutwishtoberepresentedthereat.Thisshouldbedonebythecut-offtimestipulatedbytheirCSDPorbroker. If,however,suchmemberswishtoattendtheAGMinperson,thentheywillneedtorequesttheirCSDPorbrokertoprovidethemwiththenecessaryletterofrepresentationintermsofthecustodyagreemententeredintobetweenthedematerialisedshareholderandtheCSDPorbroker.

Participation in the meeting Theboardofdirectorsofthecompanyhasdeterminedthattherecorddateforthepurposesofdeterminingwhichshareholders of the company are entitled to receive notice of the AGMwas Friday, 22 November 2013 and the last date for purposes of determiningwhichshareholdersof thecompanyareentitled toparticipate inandvoteat theAGM isFriday,17January2014. Accordingly, only shareholderswhoare registered in the register ofmembersof thecompanyonFriday, 24 January2014will beentitledtoparticipateinandvoteattheAGM.

MeetingparticipantswillberequiredtoprovideproofofidentificationtothereasonablesatisfactionofthechairmanoftheAGMiftheyarenotknowntotheChairmanandmustaccordinglybringacopyoftheiridentitydocument,passportordrivers’licencetotheAGM.Ifindoubtastowhetheranydocumentwillberegardedassatisfactoryproofofidentification,meetingparticipantsshouldcontactthetransfersecretariesforguidance.

Thisnoticeofannualgeneralmeetingincludestheattachedproxyform.

Shareholder rightsIntermsofsection58oftheCompaniesAct,No.71of2008,asamended,shareholdershaverightstoberepresentedbyproxyasherewithstated.

(1) Atanytime,ashareholderofthecompanymayappointanyindividual,includinganindividualwhoisnotashareholderofthecompany,asaproxyto:

(a) participatein,andspeakandvoteat,ashareholdersmeetingonbehalfoftheshareholder;or

(b) giveorwithholdwrittenconsentonbehalfoftheshareholdertoadecisioncontemplatedinsection60,

providedthattheshareholdermayappointmorethanoneproxytoexercisevotingrightsattachedtodifferentsharesheldbytheshareholder.

(2) Aproxyappointment:

(a) mustbeinwriting,datedandsignedbytheshareholder;and

(b) remainsvalidfor:

(i) oneyearafterthedateonwhichitwassigned;or

(ii) any longerorshorterperiodexpresslysetout intheappointment,unless it isrevokedinamannercontemplatedinsubsection(4)(c),orexpiresearlierascontemplatedinsubsection(8)(d).

(3) ExcepttotheextentthattheMemorandumofIncorporationofthecompanyprovidesotherwise:

(a) ashareholderofthecompanymayappointtwoormorepersonsconcurrentlyasproxies,andmayappointmorethanoneproxytoexercisevotingrightsattachedtodifferentsecuritiesheldbytheshareholder;


(b) aproxymaydelegatetheproxy’sauthoritytoactonbehalfoftheshareholdertoanotherperson,subjecttoanyrestrictionsetoutintheinstrumentappointingtheproxy;and

(c) acopyoftheinstrumentappointingaproxymustbedeliveredtothecompany,ortoanyotherpersononbehalfofthecompany,beforetheproxyexercisesanyrightsoftheshareholderatashareholdersmeeting.

(4) Irrespectiveoftheformofinstrumentusedtoappointaproxy:

(a) theappointmentissuspendedatanytimeandtotheextentthattheshareholderchoosestoactdirectlyandinpersonin theexerciseofanyrightsasashareholder;

(b) theappointmentisrevocableunlesstheproxyappointmentexpresslystatesotherwise;and

(c) iftheappointmentisrevocable,ashareholdermayrevoketheproxyappointmentby:

(i) cancellingitinwriting,ormakingalaterinconsistentappointmentofaproxy;and

(ii) deliveringacopyoftherevocationinstrumenttotheproxy,andtothecompany.

(5) Therevocationofaproxyappointmentconstitutesacompleteandfinalcancellationoftheproxy’sauthoritytoactonbehalfoftheshareholderasofthelaterof:

(a) thedatestatedintherevocationinstrument,ifany;or

(b) thedateonwhichtherevocationinstrumentwasdeliveredasrequiredinsubsection(4)(c)(ii).

(6) Iftheinstrumentappointingaproxyorproxieshasbeendeliveredtothecompany,aslongasthatappointmentremainsineffect,anynoticethatisrequiredbythisActorthecompany’sMemorandumofIncorporationtobedeliveredbythecompanytotheshareholdermustbedeliveredbythecompanyto

(a) theshareholder;or

(b) theproxyorproxies,iftheshareholderhas

(i) directedthecompanytodoso,inwriting;and

(ii) paidanyreasonablefeechargedbythecompanyfordoingso.

(7) Aproxyisentitledtoexercise,orabstainfromexercising,anyvotingrightoftheshareholderwithoutdirection,excepttotheextentthattheMemorandumofIncorporation,ortheinstrumentappointingtheproxy,providesotherwise.

(8) Ifthecompanyissuesaninvitationtoshareholderstoappointoneormorepersonsnamedbythecompanyasaproxy,orsuppliesaformofinstrumentforappointingaproxy:

(a) theinvitationmustbesenttoeveryshareholderwhichisentitledtonoticeofthemeetingatwhichtheproxyisintendedto beexercised;

(b) theinvitation,orformofinstrumentsuppliedbythecompanyforthepurposeofappointingaproxy,must:

(i) bearareasonablyprominentsummaryoftherightsestablishedbythissection;

(ii) containadequateblankspace,immediatelyprecedingthenameornamesofanypersonorpersonsnamedinit,toenableashareholdertowriteinthenameand,ifsodesired,analternativenameofaproxychosenbytheshareholder;and

(iii) provideadequatespacefortheshareholdertoindicatewhethertheappointedproxyistovoteinfavouroforagainstanyresolutionorresolutionstobeputatthemeeting,oristoabstainfromvoting;

(c) thecompanymustnotrequirethattheproxyappointmentbemadeirrevocable;and

(d) theproxyappointmentremainsvalidonlyuntiltheendofthemeetingatwhichitwasintendedtobeused,subjectto subsection(5).

(9) Subsection (8) (b) and (d) do not apply if the companymerely supplies a generally available standard formof proxyappointmentonrequestbyashareholder.

Byorderoftheboard

SA LittenCompany Secretary

CapeTown11November2013

94TremaTon І Integrated Annual Report 2013 TremaTon І Integrated Annual Report 2013

THIS FORM OF PROXY IS ONLY FOR USE BY:

• shareholders who hold their shares in certificated form; and

• shareholders who hold dematerialised shares with “own name” registration.

at the annual general meeting of shareholders of the company to be held at First Floor, The Hudson, 30 Hudson Street, Cape Town at 10:00 on 29 January 2014 (the “annual general meeting”).

Other shareholders must give their voting instructions to their CSDP or broker (see note 8).

Each shareholder entitled to attend and vote at the annual general meeting is entitled to appoint a proxy (who need not be a shareholder of the company) to attend, participate in and speak and vote in place of that shareholder at the annual general meeting, and at any adjournment thereafter.

Pleasenotethefollowing:

• theappointmentofyourproxymaybesuspendedatanytimetotheextentthatyouchoosetoactdirectlyandinpersonintheexerciseofyourrightsasashareholderattheannualgeneralmeeting;

• theappointmentoftheproxyisrevocable;and

• youmayrevoketheproxyappointmentby(i)cancellingitinwriting,ormakingalaterinconsistentappointmentofaproxy;and(ii)deliveringacopyoftherevocationinstrumenttotheproxy,andtothecompany.

Pleasenotethatanyshareholderofthecompanythatisacompanymayauthoriseanypersontoactasitsrepresentativeattheannualgeneralmeeting.

Pleasealsonotethatsection63(1)oftheAct,requiresthatpersonswishingtoparticipateintheannualgeneralmeeting(includingtheaforementionedrepresentative)providesatisfactoryidentificationbeforetheymaysoparticipate.

I/We(BLOCKLETTERS) _______________________________________________________________________________________________________________________________

of __________________________________________________________________________________________________________________________________________________

Beingtheregisteredholder/sof __________________________________________________________________________________________________________ordinaryshares

Herebyappoint

1. ______________________________________________________________________________________________________________________________________ whomfailing

2. ______________________________________________________________________________________________________________________________________whomfailing

3.theChairmanoftheannualgeneralmeetingasmy/ourproxytovoteforme/usandonmy/ourbehalfattheannualgeneralmeetingofthecompanytobeheldon 29January2014andatanyadjournmentthereofasfollows:

RESOLUTION No. of shares In favour of Against Abstain

SectionA:OrdinaryResolutionNumber1 (Adopttheannualfinancialstatements)

SectionA:OrdinaryResolutionNumber2.1 (Re-electionofMKaplan)

SectionA:OrdinaryResolutionNumber2.2 (Re-electionofJPFisher)

SectionA:OrdinaryResolutionNumber3 (Re-appointmentoftheindependentauditoranddesignatedauditor)

SectionA:OrdinaryResolutionNumber4.1 (AppointmentofMKaplan)

SectionA:OrdinaryResolutionNumber4.2 (AppointmentofAMLouw)

SectionA:OrdinaryResolutionNumber4.3 (AppointmentofJPFisher)

SectionA:OrdinaryResolutionNumber5 (Endorsementofremunerationpolicy)

SectionA:OrdinaryResolutionNumber6 (Generalauthoritytoissuesharesforcash)

SectionA:OrdinaryResolutionNumber7 (Directorstoimplementresolutions)

SectionB:SpecialResolutionNumber1 (Financialassistanceforsubscriptionofsecurities)

SectionB:SpecialResolutionNumber2 (Financialassistance)

SectionB:SpecialResolutionNumber3 (Generalauthoritytorepurchaseshares)

SectionB:SpecialResolutionNumber4 (Authoritytopaynon-executivedirectors’fees)

Insertan“X”intherelevantspacesaboveaccordingtohowyouwishyourvotestobecast.Ifyouwishtocastyourvotesinrespectofalessernumberofsharesthanyouowninthecompany,insertthenumberofsharesheldinrespectofwhichyoudesiretovote(seenote2).

Thisproxyshallbevalidonlyuntiltheannualgeneralmeetingoftheshareholdersofthecompanytobeheldon29January2014andanyadjournmentthereof.

Signedat _________________________________________________________________ on _________________________________________________________20 __________

Signature ___________________________________________________________________________________________________________________________________________

(Authorityofsignatorytobeattachedifapplicable–seenote5)

Assistedbyme(whereapplicable–seenote10) ____________________________________________________ Telephonenumber _________________________________

Pleasealsoreadthenotesoverleaf.

Registered office Postal address Transfer secretaries2ndFloor,TheHudson,30HudsonStreet POBox7677,Roggebaai,8012 LinkMarketServicesSouthAfrica(Pty)LimitedDeWaterkant,CapeTown,8001 Tel:0214215550 17AmeshoffStreet,Braamfontein Fax:0214215551 POBox4844,Johannesburg,2000

PROXY FORMTREMATON CAPITAL INVESTMENT(IncorporatedintheRepublicofSouthAfrica)(Registrationnumber1997/008691/06)Share code: TMT ISIN: ZAE000013991(“Trematon”or“thecompany”)

NOTES

TremaTon І Integrated Annual Report 2013 TremaTon І Integrated Annual Report 2013

Notes to the Proxy1. Ashareholdermayinsertthenameofaproxyorthenamesoftwoalternativeproxiesoftheshareholder’schoiceinthespace/sprovidedwithorwithoutdeleting“the

Chairmanoftheannualgeneralmeeting”.Thepersonwhosenameappearsfirstontheformofproxyandwhoispresentattheannualgeneralmeetingwillbeentitledtoactasproxytotheexclusionofthosewhosenamesfollow.

2. Ashareholder’sinstructionstotheproxymustbeindicatedbytheinsertionoftherelevantnumberofvotesexercisablebythatshareholderintheappropriateboxprovided.Ifthereisnoclearindicationastothevotinginstructionstotheproxy,theproxyformwillbedeemedtoauthorisetheproxytovoteortoabstainfromvotingattheannualgeneralmeetingashe/shedeemsfitinrespectofalltheshareholder’svotesexercisablethereat.

3. Ashareholderorhis/herproxyisnotobligedtouseallthevotesexercisablebytheshareholderorhis/herproxy,butthetotalofvotescastandinrespectofwhichanyabstentionisrecordedmaynotexceedthetotalvotesexercisablebytheshareholderorhis/herproxy.

4. Anydeletion,alterationorcorrectiontothisformofproxymustbeinitialedbythesignatory/ies,butanysuchalterationorcorrectionwillonlybevalidlymadeifitisacceptedbytheChairperson.

5. Documentaryevidenceestablishingtheauthorityofapersonsigningthisformofproxyintherepresentativecapacitymustbeattachedtothisformofproxyunlesspreviouslyrecordedbythecompany.

6. Formsofproxymustbelodgedatorpostedtothetransfersecretariesortheregisteredofficeofthecompany:

Transfersecretaries:LinkMarketServicesSouthAfrica (Pty)Limited,19AmeshoffStreet,Braamfontein (POBox4844,Johannesburg,2000)Registeredoffices: 2ndFloor,TheHudson,30HudsonStreet,DeWaterkant,CapeTown,8001(POBox7677,Roggebaai,8012)tobereceivedbynotlaterthan10h00on27January2014.

7. Thecompletionandlodgingofthisformofproxybycertificatedmembersanddematerialisedmemberswith“ownname”registrationwillnotprecludetheshareholderfromattendingtheannualgeneralmeetingandspeakingandvotinginpersonthereattotheexclusionofanyproxyappointedintermshereofshouldsuchshareholderwishtodoso.

8. Dematerialisedshareholders,otherthanwith“ownname”registration,mustadvisetheirCentralSecuritiesDepositoryParticipant(“CSDP”)orbrokeroftheirvotinginstructionsiftheyareunabletoattendtheannualgeneralmeeting,butwishtoberepresentedthereat.Thisshouldbedonebythecut-offtimestipulatedbytheirCSDPorbroker.Ifhowever,suchmemberswishtoattendtheannualgeneralmeetinginperson,thentheywillneedtorequesttheirCSDPorbrokertoprovidethemwiththenecessaryletterofrepresentationintermsofthecustodyagreemententeredintobetweenthedematerialisedshareholderandtheCSDPorbroker.

9. Aformofproxyshallbedeemedtoincludetherighttodemandorjoinindemandingapoll.

10.Aminormustbeassistedbyhis/herparentorguardianunlesstherelevantdocumentsestablishinghis/herlegalcapacityareproducedorhavebeenregisteredbytheCompany Secretary.

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