UNAUDITED INTERIM RESULTS ANNOUNCEMENT for the six month period ended 30 June 2018

INTRODUCTION

Trading in South Africa during the first half of the year remained challenging with continued pressure on disposable income, a VAT increase and a deteriorating economic climate. Trading in Chile remained subdued while Peru experienced good growth. As indicated, we have shifted our focus, realigned our strategy and are committed to getting the basics right and operating as efficiently and optimally as possible. The benefits of this strategy are clearly demonstrated in the results from the South African operations where we have managed to hold comparable EBITDA in line with the prior corresponding period. This was despite comparable income only being up by 1%, significant cost pressures and a 1% increase in the South African VAT rate. In June 2018, we concluded the R1.6 billion equity raise and used the proceeds to reduce South African debt. While the equity raise has improved our debt covenants, the group remains highly geared. As a result of the group’s strong cash generation, we are confident debt will continue to reduce and we will revert to satisfactory debt levels over the next few years. In Latam, we concluded the acquisition of an additional 10% interest in Sun Dreams during May 2018, increasing our interest to approximately 65%. We further concluded the acquisitions of Thunderbird Resorts in Peru for US$26 million in April 2018 and the Park Hyatt Hotel and Casino in Mendoza, Argentina for US$25.5 million in July 2018. Both these acquisitions were concluded at attractive valuations and will contribute positively to the group’s performance. Disappointingly, we only secured one of the five municipal licences which we bid for in Chile. While our bids all met the minimum criteria, we lost out to a competitor whose economic offer (additional tax) was substantially above ours and at levels which would not generate satisfactory returns. We continue to deal with loss making entities and in this regard plan to restructure the Boardwalk and Carousel operations. Applications for the required approvals have been submitted to the respective gaming boards. Time Square has experienced a significant increase in activity although income for the comparable period (April – June) is only marginally up on the prior corresponding period. Recent trading has however been encouraging with July and August 2018 gaming income up by 32% and 33% respectively. For the six months under review, group income increased by 4% to R7.9 billion. South African comparable income (excluding Time Square, Fish River and Morula) increased by 1%. In Chile, income increased by 2% with Monticello income up by 6%. Due to the closure of Sun Nao casino in December 2017 and the downscaling of the Ocean Sun casino operation, income from Colombia and Panama respectively was well down on the prior corresponding period. Group EBITDA increased by 6% to R2.0 billion and on a comparable basis by 2% to R1.8 billion. The increase in the VAT rate from 14% to 15% negatively impacted EBITDA by approximately R21 million. With the full six months trading of Time Square and the opening of the arena and hotel, depreciation was up by 8% resulting in adjusted operating profit increasing by only 4%. Interest charges were 24% higher due to the debt funding of Time Square. Minorities’ share of earnings has decreased with the acquisition of the approximately 10% interest in Sun Dreams. Due primarily to the group’s attributable share of the losses from Time Square increasing from R63 million in the prior corresponding period to R182 million, adjusted headline earnings decreased from R206 million to R115 million, 44% below the prior corresponding period. Adjusted headline earnings per share were down by 47% at 105 cents per share.

OUTLOOK

As a result of the subdued local economy and low economic growth experienced in Chile, we expect trading to remain under pressure. We are however encouraged by the trading at Time Square, Monticello, Sun Slots and our Peru operations. Forward bookings on the hospitality front have also improved which will assist both Sun City and Table Bay. The continued focus on maximizing efficiencies and reducing costs will help us protect our margins in this difficult trading environment. We will, however, need to deal with the full impact of the increase in VAT in the second half as well as the requirement to permanently employ temporary contract labour workers at our properties in terms of the recent Constitutional Court ruling. While we expect our new operations in Peru and Argentina to contribute positively in the second half, interest costs in Latam will increase following these acquisitions and the acquisition of the minority interest in Sun Dreams. Earnings attributable to Latam minorities will, as a consequence of the acquisition, reduce. The proceeds from the rights offer will help reduce interest costs in South Africa although the number of shares in issue has increased. We will continue focusing on reducing our debt levels and improving our debt covenants.