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RDC Properties Limited ANNUAL REPORT 2016 GROWTH AND DIVERSIFICATION OF THE RDC PORTFOLIO

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Page 1: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

RDC Propert ies L imited

ANNUAL

REPORT

2016

GROWTH AND DIVERSIFICATION OF THE RDC PORTFOLIO

Page 2: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

Developers and investors in prime properties,

contributing to the improvement of the

quality of life in developing countries, we

grow our business by creating partnerships

with customers and land owners

Isalo Rock Lodge

CORPORATE PROFILE

Incorporation Information

Company Number 96/592Date of incorporation 18/04/1996

Market capitalisation

The ordinary share price of RDC Properties Limited (“RDCP” or the “company”) at close of business on 31 December 2016 was P2.70, giving a market capitalisation of P938,377,499.

Investor relations

6IKMWXIVIH� 3J½GI� -RZIWXSVW� VIUYMVMRK�further information on the group are invited to contact:Mr. G. MoriRDC Properties Limited, Plot 5624, Lejara RoadBroadhurst Industrial Gaborone, BotswanaT: (+267) 3901654 F: (+267) 3973441E: [email protected] information on RDCP is available at: www.rdcpbotswana.com

Annual General Meeting

The Annual General Meeting (“AGM”) of the GSQTER]�[MPP� XEOI�TPEGI�EX� XLI�6('�3J½GIW��� 6IEPIWXEXI� 3J½GI� 4EVO�� 0INEVE� 6SEH�� SR�Wednesday 24 May 2017 at 12.00 hrs. The notice of meeting is being sent along with this Annual Report.

Electronic communications

Unit holders are informed that RDCP has received formal approval by the Botswana Stock Exchange to distribute all shareholder communication electronically except where HSGYQIRXW� EVI� WTIGM½GEPP]� VIUYIWXIH� MR�written form.

Chobe Marina LodgeChobe Marina Lodge

Page 3: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

Overview

'SVTSVEXI�4VS½PI� � � � � 1,MKLPMKLXW�SJ�XLI�=IEV������ERH�*MZI�=IEV�3ZIVZMI[ 2

Executive Reports

'LEMVQER W�7XEXIQIRX�� � � � 43TIVEXMRK�ERH�*MRERGMEP�6IZMI[� � � 9

Corporate Governance

&SEVH�SJ�(MVIGXSVW� � � � � 15 %YHMX�ERH�6MWO�'SQQMXXII�ERH�1EREKIQIRX�8IEQ� 16 (MVIGXSVW´�6ITSVX� � � � � 17 +SZIVRERGI�7XEXIQIRX� � � � 20

Annual Financial Statements

(MVIGXSVW´�6IWTSRWMFMPMX]�7XEXIQIRX�ERH�%TTVSZEP�SJ�%RRYEP�*MRERGMEP�7XEXIQIRXW� � 23 -RHITIRHIRX�%YHMXSV W�6ITSVX�XS�XLI�1IQFIVWSJ�6('�4VSTIVXMIW�0MQMXIH� � � � 24 7XEXIQIRXW�SJ�'SQTVILIRWMZI�-RGSQI� � 287XEXIQIRXW�SJ�*MRERGMEP�4SWMXMSR� � � 29 7XEXIQIRXW�SJ�'LERKIW�MR�)UYMX]� � � 30 7XEXIQIRXW�SJ�'EWL�*PS[W� � � � 31 7MKRMJMGERX�%GGSYRXMRK�4SPMGMIW� � � 32 2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW� � � 412SXMGI�SJ�XLI�1IIXMRK�� � � � 59*SVQ�SJ�4VS\]�� � � � � 60

CONTENTS1EWE�,SXIP

GROWTH AND DIVERSIFICATION OF THE RDC PORTFOLIO

HIGHLIGHTS OF THE YEARREGIONAL EXPANSION

Land secured in Namibia Partnerships signed in Mozambique

INVESTMENT AND PROPERTY PORTFOLIOUp by 12%, now stands at P1,237 million (2015: P1,103 million)

REVENUEUp by 4.5% to P90.9 million (2015: P87.0 million)

NET INCOME FROM OPERATIONS BEFORE FAIR VALUE ADJUSTMENTUp by 31% to P59.8 million (2015: P45.7 million)

PROFIT BEFORE TAXUp by 19% to P150.2 million (2015: P126.3 million)

DISTRIBUTION TO UNIT HOLDERSUp 38% to P29.5 million (2015: P21.3 million)

Page 4: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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Top 10 Unit Holders Linked Units %REALESTATE FINANCIERE SA 109,721,667 31.57%

FNB BOTSWANA NOMINEES (PTY) LTD RE:AA BPOPF EQUITY 61,551,173 17.71%

CHOBE FINANCIAL CORPORATION 54,773,589 15.76%

FNB NOMINEES (PTY)LTD RE:AGRAY BPOPF 10001010 28,048,306 8.07%

ASPERA HOLDINGS LIMITED 13,017,463 3.75%

MOTOR VEHICLE ACCIDENT FUND 12,867,650 3.70%

BOTSWANA PUBLIC OFFICERS PENSION FUND 12,529,765 3.61%

FNB BOTSWANA NOMINEES (PTY) LTD RE: BIFM BPOPF-EQU 7,866,093 2.26%

FNB BOTSWANA NOMINEES (PTY) LTD RE: ACB BPOPF WPPP 7,711,723 2.22%

BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782 1.74%

Linked unit band Linked units % Holders %0-1999 201,897 0.06% 271 49.91%2000-4999 208,148 0.06% 64 11.79%5000-9999 348,819 0.10% 52 9.58%10000-49999 1,805,930 0.52% 79 14.55%50000-99999 1,439,413 0.41% 20 3.68%100000-499999 6,794,166 1.95% 32 5.89%500000 and above 336,748,849 96.89% 25 4.60%TOTALS 347,547,222 100% 543 100%

2016 2015 2014 2013 2012

P'000 P'000 P'000 P'000 P'000

Portfolio value 1,236,919 1,103,835 950,328 858,842 764,992 Increase 133,084 153,507 91,486 93,850 150,216 Increase in value % 12.06% 16.15% 10.65% 12.27% 24.43%Income yield % 7.35% 7.88% 8.22% 8.34% 6.02%Financial position

Net asset value (NAV) 927,806 840,319 549,046 473,642 354,331 NAV per linked unit 2.67 2.42 2.47 2.15 2.00NAV adjusted for deferred taxation 2.84 2.56 2.62 2.27 2.12Long term debt 224,048 211,621 212,602 222,851 232,153 Equity 1,105,365 1,001,025 685,974 591,667 484,194 Long term debt to portfolio value ratio 18.11% 19.17% 22.37% 25.95% 30.35%

2016 2015 2014 2013 2012

P’000 P’000 P’000 P’000 P’000

Statement of comprehensive income

Revenue 90,886 86,993 78,130 71,620 46,025 3UR¼W�IURP�RSHUDWLRQV�EHIRUH�IDLU�YDOXH�DGMXVWPHQWV 65,176 62,825 58,264 54,039 29,544 3UR¼W�IURP�RSHUDWLRQV�DIWHU�IDLU�YDOXH�DGMXVWPHQWV 155,526 143,443 136,188 117,292 136,856 3UR¼W�EHIRUH�WD[ 150,160 126,322 115,379 96,987 122,929 3UR¼W���DWWULEXWDEOH�WR�RZQHUV 109,975 80,909 86,344 74,137 71,661 Average number of linked units in issue 347,547,222 259,422,463 244,742,538 179,675,052 174,469,140 Earnings per linked unit 31.64 31.19 39.02 41.26 41.07 6KDUH�SULFH�DW�\HDU�HQG 2.70 2.46 2.03 1.80 1.39 0DUNHW�FDSLWDOLVDWLRQ�\HDU�HQG 938,377,499 854,966,166 447,300,125 396,620,801 245,734,535 Distribution yield 3.14% 3.06% 4.32% 4.38% 5.51%

Market Price per Capitalisation Linked unit Year end (P millions) % increase (P) % increase������ �������� � ����������� ������� ����� ����� � ��������� ������� ����� ������ � ��������� ������� ����� ������ � ��������� ������� ����� ������ � ���

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Page 5: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

3

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

G. R. Giachetti)\IGYXMZI�'LEMVQER

Page 6: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

4

'LEMVQER W�7XEXIQIRX

It is a pleasure to present to you the activities SJ�XLI�+VSYT�ERH�XLI�*MRERGMEP�7XEXIQIRXW�SJ�the Group to 31 December 2016, a positive ]IEV� [MXL� E� WXVSRK� WIX� SJ� ½RERGMEP� VIWYPXW�ERH� XLI�WIXXMRK�SJ�KSSH� JSYRHEXMSRW� JSV�SYV�regional expansion.

We have managed to continue to live to SYV� ZEPYIW� SJ� ±MQTVSZMRK� XLI� PMJI� SJ� XLI�communities in which we operate” as both, directly and indirectly, we have managed to GEVV]�SYX�E�RYQFIV�SJ�TVSKVEQW�ERH�FIPMIZI�[I�EVI�QEOMRK�E�HMJJIVIRGI��

The Group remains in a very strong position to expand into the region with a solid balance WLIIX�ERH�E�JI[�MRXIVIWXMRK�TVSNIGXW��

I shall report on our activities by country as management time has been directed towards XLI� VIKMSREP� HMZIVWM½GEXMSR� IJJSVX� [MXLSYX�taking opportunities in Botswana.

%RWVZDQD

(IWTMXI� XLI� HMJ½GYPX� IGSRSQMG� GSRHMXMSRW�TVIZEPIRX�MR�&SXW[ERE��SYV�TSVXJSPMS�MW�TVSZMRK�resilient and we are very pleased with the PS[�PIZIP�SJ�ZEGERG]��������'SRXVEGXYEP�PIEWI�rental revenue improved by 6%, excluding the IJJIGXW�SJ�XLI�WXVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�The hospitality sector properties are contributing very positively to the rental income and in particular Chobe Marina Lodge LEW�TIVJSVQIH�I\GITXMSREPP]�

;I� LEZI� MRZIWXIH� XLI� TVSGIIHW� JVSQ� XLI�VMKLXW� MWWYI� ERH� XLIVIJSVI� SYV� RIX� MRGSQI�JVSQ�STIVEXMSRW�FIJSVI�JEMV�ZEPYI�EHNYWXQIRXW�is up 31%. The capital raised was placed with ½RERGMEP�MRWXMXYXMSRW�ERH�MR�WLEVIW�SJ�XLI�PMWXIH�company Letshego Holdings and in the IPO SJ�7TIEV�6)-8�0MQMXIH�MR�67%��

(YVMRK� XLI� ]IEV�� [I� WYGGIWWJYPP]� GSQTPIXIH�the Masa Suites and the Masa Square Hotel JS]IV�ERH�VIWXEYVERX� VIJYVFMWLQIRX��E� JSVQEP�opening took place in the May 2016 honoured F]�XLI�1MRMWXIV�SJ�;MPHPMJI��)RZMVSRQIRX�ERH�Tourism. These investments have positively GSRXVMFYXIH� XS� XLI� IRLERGIH� I\TIVMIRGI� SJ�Masa Centre. Masa Centre continues to be a key business and leisure destination in the Gaborone CBD.

The new Gaborone West Warehouses were GSQTPIXIH�HYVMRK�XLI�]IEV�ERH�EVI�RS[�JYPP]�PIX��-R�XLIWI�HMJ½GYPX�QEVOIX�GSRHMXMSRW�[I�EVI�pleased that we seem to have targeted the right clientele.

8LI�HIZIPSTQIRX�SJ� XLI�RI[���� VIWMHIRXMEP�apartments at the ICC Flats property in Gaborone is progressing well and should be GSQTPIXIH� F]� XLI� WIGSRH� UYEVXIV� SJ� ������the works are on track and within budget.

In December 2016, we concluded a sale EKVIIQIRX� JSV� XLI� TVSTIVX]� ORS[R� EW� XLI�6IEPIWXEXI�3J½GI�4EVO�MR�&VSEHLYVWX�-RHYWXVMEP��8LI� SJJIV� VIGIMZIH�� 4����� QMPPMSR� �KVSWW� SJ�selling costs) is at a substantial premium to XLI� QEREKIQIRX� ZEPYEXMSR� ERH� XLIVIJSVI� MX�[EW�GSRWMHIVIH�FIRI½GMEP�XS�WIPP�XLI�TVSTIVX]��8LI�GEWL�VIGIMZIH�JVSQ�XLI�WEPI�[MPP�FI�YWIH�JSV�XLI�-''�¾EXW�TVSNIGX��Management is exploring other residential TVSNIGXW�ERH�LSTI�XS�FI�EFPI�XS�MRGVIEWI�XLI�company exposure to this sector in the years to come.

Madagascar

Isalo Rock Lodge, our Madagascar property, LEW�TIVJSVQIH�MR� PMRI�[MXL�I\TIGXEXMSRW�ERH�XLI�TVSTIVX]�MW�RS[�QEOMRK�E�WQEPP�TVS½X�JVSQ�operations, we expect this to improve in the next year. However the investment reported a small loss, this is due to an exchange loss.�;I�LEZI�VIGIMZIH�JI[�SJJIVW�JSV�XLI�TVSTIVX]�

Dear Unit Holders,

Chobe Marina Lodge

Upcoming RDC Flats

Page 7: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

5

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

'LEMVQER W�7XEXIQIRX�Cont.

and this is a sign that the Lodge is attracting XLI�MRXIVIWX�SJ�TVSQMRIRX�PSGEP� MRZIWXSVW��[I�shall consider exiting the Madagascar market WLSYPH�ER�EHIUYEXI�SJJIV�FI�VIGIMZIH�

Namibia

8LI� GSVTSVEXI� WXVYGXYVI� JSV� XLI� +VSYT�investments in Namibia has been completed ERH� [I� LEZI� TVSGIIHIH� [MXL� XLI� ½VWX�EGUYMWMXMSR�SJ�PERH�JSV�HIZIPSTQIRX�

;I� LEZI� WIGYVIH� X[S� WMXIW� MR� 2EQMFME� JSV�XLI� HIZIPSTQIRX� SJ� GSRZIRMIRGI� WLSTTMRK�centres in Katima Mulilo and in Tsumeb. 8LI� � PERH�EPPSGEXMSR�TVSGIWW� MW�SR�KSMRK� JSV�three other towns, Eenhana, Outapi and +VSSXJSRXIMR�� 'SRWXVYGXMSR� MW� I\TIGXIH� XS�start on the RDC Katima Mulilo Centre, [MXLMR�XLI�WIGSRH�UYEVXIV�SJ������ERH�XLIR�JI[�QSRXLW�PEXIV�SR�XLI�6('�8WYQIF�'IRXVI�

The company will continue to pursue other PERH� EGUYMWMXMSR� JSV� GSRZIRMIRGI� GIRXIVW�and possibly balancing the country sector exposure in other sectors.

Mozambique

As anticipated in last year’s annual report, [I� LEZI� GSRGPYHIH� XLI� EKVIIQIRXW� JSV� XLI�HIZIPSTQIRX� SJ� X[S� GSRZIRMIRGI� WLSTTMRK�centres in Mozambique. The corporate structures are being set up. Our interests in the developments in Mozambique will be held through two registered Mauritius subsidiaries SJ� 6('� 4VSTIVXMIW� -RXIVREXMSREP� �4X] � 0XH��±6('4-² �� E� ���� WYFWMHMEV]� SJ� 6('�Properties Limited. RDCPI is an International *MRERGMEP�7IVZMGIW�GSQTER]��±-*7'² ��

We signed a shareholders agreement with a 100% Mozambique citizen held company JSV�XLI�MRZIWXQIRX�MR�E�GSQTER]�MR�1EYVMXMYW��called RDC-KMR Limited, we shall have a controlling stake equal to 55% in the

GSQTER]���8LI�GSQTER]�[MPP�S[R����SJ�<EM�<EM� 2I[GS�� 0HE�� XLI� EWWIX� SJ� XLI� GSQTER]�comprises a semi-developed convenience GIRXVI� MR� <EM� <EM�� +E^E� 4VSZMRGI�� 8LI�completed convenience centre will measure 5,300 m2 (GLA) and comprise a Choppies 7YTIVQEVOIX�SJ�������Q��ERH�������Q��SJ�line shops. The 55% percent stake in RDC-KMR Limited will be acquired with the MRNIGXMSR� SJ� 97(���������� MR� XLI� GSQTER]��TEVX� SJ� XLI� GETMXEP� MRNIGXMSR�� IWXMQEXIH� EX�97(����������� [MPP� FI� YWIH� XS� ½RERGI� XLI�GSQTPIXMSR�SJ�XLI�<EM�<EM�7LSTTMRK�'IRXVI��[MXL� XLI� FEPERGI� LIPH� XS� XEOI� EHZERXEKI� SJ�other opportunities. The construction works are expected to be starting by the second UYEVXIV�SJ������ERH�GSQTPIXIH�F]� XLI�½VWX�UYEVXIV�SJ������

We signed a shareholders agreement with a very well known Mozambique transport +VSYT��0EPK]�+VSYT�� JSV� XLI� MRZIWXQIRX� MR�E�company in Mauritius, called RDC Zimpeto Limited - we shall have a controlling stake equal to 60% in the company. The company [MPP�S[R�����SJ�>MQTIXS�7LSTTMRK�'IRXIV��0HE�� XLI� EWWIX� SJ� XLI� GSQTER]� GSQTVMWIW�YRHIZIPSTIH� PERH�� QIEWYVMRK� MR� I\GIWW� SJ�58,000 m2 in the very densely populated EVIE� SJ�>MQTIXS�� E� WYFYVF� SJ�1ETYXS�� �8LI�land is valued at USD2,200,000 and will be XLI� GSRXVMFYXMSR� JVSQ� SYV� TEVXRIVW� MR� XLI�HIZIPSTQIRX�� (IWMKRW� LEZI� WXEVXIH� JSV� E�medium-sized shopping centre including a 'LSTTMIW� 7YTIVQEVOIX� SJ� ������ Q�� ERH������� Q�� SJ� PMRI� WLSTW�� E� 4IXVSP� 7XEXMSR�[MPP� WYTTPIQIRX� XLI� EXXVEGXMZIRIWW� SJ� XLMW�commercial node. The 60% percent stake in RDC-Zimpeto Limited will be acquired [MXL� XLI� MRNIGXMSR� SJ� 97(���������� MR� XLI�GSQTER]�� XLMW� EQSYRX�[MPP� FI� YWIH� XS� FYMPH�the shopping centre. It is anticipated that the XSXEP�GSWX�SJ�XLI�½VWX��WIGSRH�TLEWI�SJ�XLI�RDC Zimpeto Shopping Centre, excluding the petrol station but including the land, would be USD9,000,000. The construction

Upcoming Katima Mulilo Mall

Upcoming Katima Mulilo Mall

Page 8: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

'LEMVQER W�7XEXIQIRX�Cont.

works are expected to be starting by the WIGSRH� UYEVXIV� SJ� ����� ERH� GSQTPIXIH� F]�XLI�½VWX�UYEVXIV�SJ������

The Republic of South Africa

9RJSVXYREXIP]�XLI�TVSTSWIH�HIZIPSTQIRX�SJ�XLI�&YWMRIWW�,SXIP�MR�XLI�'&(�SJ�'ETI�8S[R�has had to be set aside as some issues arose [MXL� XLI� WYFHMZMWMSR� SJ� XLI� TVSTIVX]� [LMGL�was a condition precedent.

-R� XIVQW� SJ� XLI� WLEVILSPHIVW� EKVIIQIRX�WMKRIH�[MXL�SYV�TEVXRIVW�MR�7SYXL�%JVMGE��EPP�XLI�capital invested by the Group was converted MR�E� PSER�EXXVEGXMRK�ER�MRXIVIWX�SJ�TVMQI�TPYW�2%. The loan was repaid to RDC Properties 7SYXL�%JVMGE� �4VSTVMIXEV] � 0MQMXIH�� E� ����WYFWMHMEV]� SJ� 6('4-�� F]� IRH� SJ� 7ITXIQFIV�2016. The capital and interest received was XLIR� MRZIWXIH� MR� E� TVMZEXI� TPEGIQIRX� SJ� E�newly listed property company operating in the Cape Region, Spear REIT Limited, PMWXIH�SR� XLI�%PX<�SJ� XLI� .7)�� �8LI� ZEPYI�SJ�the shares have appreciated and a dividend ]MIPH�SJ����� MW�I\TIGXIH�JVSQ�XLIWI�WLEVIW���;I� WLEPP� GPSWIP]� QSRMXSV� XLI� TIVJSVQERGI�SJ� XLI� WLEVIW� ERH� HMWMRZIWX� [LIR� E� FIXXIV�opportunity arrises.

1EREKIQIRX� MW� SR� XLI� PSSOSYX� JSV� SXLIV�developments.

Living our values, “improving the OLIH� RI� WKH� FRPPXQLWLHV� LQ�ZKLFK�ZH�operate”

During 2016 we continued our community support by acting directly, investing time and QSRI]� MR� XLI� WYTTSVX� SJ� HMJJIVIRX� PEYHEFPI�causes or through the donations to NGO’s. 8LI�ERRYEP�±1EWE�'IRXVI�*SSH�ERH�'PSXLMRK�JSV�'LEVMX]�'EQTEMKR²� MW� RS[� FIGSQMRK� ER�ERRYEP� IZIRX� [MXL� ER� IZIV� PEVKIV� JSPPS[MRK��;I�QEREKIH� XS� GSPPIGX� ZSPYQMRSYW�FEKW�SJ�GPSXLMRK� ERH� WIZIVEP� JSSH� LEQTIVW�� 8LIWI�

donations were handed over during the annual Carols by Candle Light and Charity Handover Ceremony in December 2016 to the Mother 4SRXWLS� *SYRHEXMSR� JVSQ�1QSTERI� ZMPPEKI��During the same evening vendors exhibited ERH� WSPH� XLIMV� KSSHW� EX� XLI�±2MKLX� 1EVOIX�JSV�'LEVMX]²�ERH�TEVX�SJ�XLIMV�TVSGIIHW�[IVI�donated to the Charity Campaign.

We continue to support the Ngwapa Primary School in the Tuli Block. On a yearly basis we contribute towards the development and QEMRXIRERGI� SJ� XLI� WGLSSP� ERH� WTSRWSVMRK�TVM^I� KMZMRK� JSV� FIWX� TIVJSVQMRK� WXYHIRXW� MR�all standards as well as an annual monetary MRGIRXMZI� JSV� XLI� FIWX� TIVJSVQMRK� WXYHIRXW�who attain an overall grade A in the PSLE examination. The Group has been supporting the school since inception in various ways, MRGPYHMRK� XLI� FYMPHMRK� SJ� XLI� SVMKMREP� WGLSSP�blocks, a playground, providing computers and MRXIVRIX� GSRRIGXMZMX]� JSV� XLI� [LSPI� WGLSSP��sponsoring school trips, providing sports attire JSV� WSQI�SJ� XLI� GLMPHVIR��;I� WLEPP� GSRXMRYI�supporting the only school in this rural village.

To show love and hope to the hospitalized HYVMRK� XLI� JIWXMZI� WIEWSR�� 1V�� .EGSTS� 4EVM�represented the company at the Christmas TEVX]� WTSRWSVIH� F]� YW� EX� XLI� 7IJLEVI�Primary Hospital. This rural primary hospital MW� KIRIVEPP]� PIJX� [MXL� ZIV]� PMXXPI� XS� GIPIFVEXI�Christmas. The company sponsors the event JSV� XLI� MR�TEXMIRXW� ERH� SYX�TEXMIRXW� SR� XLI�December each year. Patients and new born receive a present and Baby hampers. We are TVSYH�XS�FI�EFPI�XS�QEOI�E�HMJJIVIRGI�MR�XLI�7IJLEVI�ZMPPEKI��

Financial results and highlights

It is a pleasure to report that the audited ½RERGMEP�VIWYPXW�JSV�XLI�]IEV�IRHIH���(IGIQFIV������EKEMR�VI¾IGX�WSPMH�VIWYPXW��6IZIRYI�MRGVIEWIH�JVSQ�4�����QMPPMSR�MR������

Masa Centre Annual Carols by Candle Light

Event

Masa Centre Annual Carols by Candle Light

Event

Page 9: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

7

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

to P90.9 million in 2016, showing an increase SJ������2IX�MRGSQI�JVSQ�STIVEXMSRW�FIJSVI�JEMV� ZEPYI� EHNYWXQIRXW� [EW� YT� ���� 4VS½X�FIJSVI�XE\�[EW�YT�����Based on these results, the company distribution per linked unit increased by 13%.

8LI�%HNYWXIH�2IX�%WWIX�:EPYI��2%: �WXERHW�at P2.84 per linked unit up 11% (2015: P2.56) ERH�VIXYVR�SR�IUYMX]��±63)² �WXERHW�EX����(2015: 9%).

8LI� MRZIWXQIRX� ERH� TVSTIVX]� TSVXJSPMS�KVI[� ��� XS� 4���� FMPPMSR�� XLI� WYVTPYW� JVSQ�XLI� VIZEPYEXMSR� SJ� TVSTIVXMIW� MRGVIEWIH� F]�12% to P90.4 million (2015: P80.6 million). The largest contributor to the growth in the TSVXJSPMS�ZEPYI�VIPEXIW�XS�XLI�JEMV�ZEPYI�KEMRW�SJ� XLI� 'LSFI� 1EVMRE� 0SHKI�� XLMW� TVSTIVX]�was independently valued this year.

8LI� 4����� QMPPMSR� ³%WWIXW� GPEWWM½IH� EW� LIPH�JSV� WEPI � MR� XLI� 7YQQEVM^IH� 'SRWSPMHEXIH�7XEXIQIRX� SJ� *MRERGMEP� 4SWMXMSR� VIPEXIW� XS� E�WMKRIH�SJJIV� XLI�+VSYT�LEW� VIGIMZIH� JSV� XLI�WEPI� SJ� ER� SJ½GI� TEVO� SR� 0SX� ����� 0INEVE�6SEH��&VSEHLYVWX�-RHYWXVMEP��8LI�WEPI�MW�WYFNIGX�to the purchaser meeting all the terms and conditions associated with the transaction.

Board and Corporate

Governance

I would like to thank the Audit and Risk GSQQMXXII�YRHIV�XLI�'LEMVQERWLMT�SJ�1V�� .�� ,MRGLPMJJI� [LS� LEW� QEHI� WYVI� [I�continue to comply with the best practices. We are pleased that all Directors have declared their interests and the Board has YRHIVKSRI�MXW�½VWX�JSVQEP�EWWIWWQIRX�

-�EQ�TPIEWIH�XS�MRJSVQ�]SY�XLEX�1V�%RHVI[�Bradley was appointed as an independent RSR�I\IGYXMZI� HMVIGXSV� SJ� XLI� 'SQTER]� EX�XLI�QIIXMRK�SJ� XLI�&SEVH�SJ�(MVIGXSVW�LIPH�on 26 May 2016. An attorney by training, Mr

&VEHPI]� MW�EPWS�ER�%HZSGEXI�SJ�XLI�7YTVIQI�'SYVX� SJ� 7SYXL� %JVMGE� ERH� MW� E� 'IVXM½IH�Financial Planner. Mr Bradley has co-authored ERH�GSRXVMFYXIH�XS�E�RYQFIV�SJ�TYFPMGEXMSRW�MR�XLI�½RERGMEP�WIVZMGIW�MRHYWXV]��MRGPYHMRK�XLI�well-known book How much is Enough?. Mr Bradley’s regional experience, as well as his ½RERGMEP� WIVZMGIW� ERH� EGEHIQMG� FEGOKVSYRH��[MPP�FI�ZEPYEFPI�XS�XLI�'SQTER]�EW�TEVX�SJ�MXW�expansion into the region.

;I�EVI�GSQTP]MRK�[MXL�SYV�FEROMRK�JEGMPMXMIW�and the directors do not expect this position XS� EPXIV� MR� XLI� JSVXLGSQMRK� X[IPZI� QSRXLW��8LI� HMVIGXSVW� LEZI� GSRWMHIVIH� SYV� JSVIGEWX�GEWL�¾S[W��XLI�+VSYT´W�PS[�KIEVMRK��WMKRM½GERX�TSVXJSPMS� SJ� YRIRGYQFIVIH� TVSTIVXMIW� ERH�XLI�QEXYVMX]� TVS½PI� SJ� SYV� FSVVS[MRKW� ERH�GER�GSR½VQ�XLEX�XLI�'SQTER]�LEW�EHIUYEXI�VIWSYVGIW� XS� GSRXMRYI� JSV� XLI� JSVIWIIEFPI�JYXYVI�

-� GSQQIRH� XLI� [SVO� HSRI� F]� XLI� WXEJJ�ERH� QEREKIQIRX� SJ� 4VSTIVX]� ERH� %WWIX�Management Limited (PAM) under the able HMVIGXMSR� SJ� 1V�� .EGSTS� 4EVM� ERH� 1V�� +VERX�Mori with a personal attention to detail on FILEPJ�SJ�EPP�SYV�PMROIH�YRMX�LSPHIVW�

-�XLERO�XLI�&SEVH�SJ�HMVIGXSVW��&SXW[ERE�7XSGO�Exchange and all those who have contributed XS�XLI�GSRXMRYIH�KVS[XL�SJ�XLI�KVSYT�HYVMRK�the year 2016.

8LI� &SEVH� VIQEMRW� JSGYWIH� SR� WIIOMRK�to maximise rental income, pursuing the HMZIVWM½GEXMSR� SJ� XLI� TSVXJSPMS� FSXL� PSGEPP]�and regionally and exploring alternative EZIRYIW�SJ�KVS[XL�

G. R. GiachettiExecutive Chairman

'LEMVQER W�7XEXIQIRX�Cont.

Handover Ceremony Ngwapa Primary

Handover Ceremony Ngwapa Primary

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8

Jacopo Pari'LMIJ�)\IGYXMZI�3J½GIV

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9

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Masa Centre

8LI�PEWX�]IEV��XLI�PSGEP�IGSRSQ]�JEGIH�WSQI�GLEPPIRKIW� WYGL� EW� XLI� GPSWYVI� SJ� E� JI[�QMRIW�� [MXL� XLI� PEVKIWX� MQTEGX� FIMRK� JIPX� F]�XLI�TPEGIQIRX�SJ� XLI�&'0�1MRI��&SXW[ERE´W�biggest copper and nickel mine, under provisional liquidation. The mine however has FIIR�QEVOIH� JSV� TVMZEXM^EXMSR� XS� WEJI� KYEVH�XLI�NSFW�SJ�XLI�IQTPS]IIW�[LIVI�TSWWMFPI��-R�E�drive to sustain the economy, the government implemented an Economic Stimulus Package program, which has seen an increase in KSZIVRQIRX�WTIRHMRK�XS[EVHW�MRJVEWXVYGXYVI��The diamond industry also showed some JSVQ� SJ� WXEFMPM^EXMSR� ERH� VIWMPMIRGI��[LMGL� MW�encouraging. 8LI� MR¾EXMSR� VEXI� �'4- � GPSWIH� EX� �� MR�December 2016, remaining within the 3%-��WIX�VERKI��-R�ER�MRGVIEWIH�IJJSVX�XS�FSSWX�the economy, in August 2016, the Monetary Policy Committee reduced the bank lending rate and prime rate, by 0.5%, to 5.5% and 7% respectively, the lowest they have been in the past 10 years. The banks reacted to the interest rate change by generally decreasing XLI� GSWX� SJ� FSVVS[MRK� XS� GYWXSQIVW� ERH�[MXL�QSVI�WXVMRKIRX�ZIXXMRK�TVSGIWWIW�JSV�XLI�lending applications.

*YVXLIVQSVI�� MRGSRWMWXIRX� WYTTP]� SJ� [EXIV�ERH�TS[IV� GLEPPIRKIW� JEGIH�HYVMRK� XLI� ]IEV�KVEHYEPP]� IEWIH� SJJ� ERH� [I� I\TIGX� FIXXIV�services during the next reporting period – the recent rains in the country have aided water supply, however the utilities providers EVI�YRHIV�TVIWWYVI�XS�MRGVIEWI�XLIMV�XEVMJJ�

The country celebrated the remarkable 50th year independence Anniversary on September the 30th��8LEX�[EW�XLI�SGGEWMSR�JSV�showcasing across the Country the important milestones and achievements attained over the past years. The country, proudly and VMKLXJYPP]� WS�� TSVXVE]IH� FIJSVI� VIKMSREP� ERH�MRXIVREXMSREP�,IEHW�SJ�7XEXIW�ERH�(IPIKEXIW�MXW�MQEKI�SJ�SRI�SJ�XLI�QSWX�TIEGIJYP�REXMSRW�MR�the continent with consistency in democratic practices and inclusive growth.

On the above premises, we trust that the FYWMRIWW� GSR½HIRGI� MR� XLI� GSYRXV]� [MPP�witness continuous growth along with a warm and conducive investment climate to attract JSVIMKR�MRZIWXQIRX�RIGIWWEV]�XS�FSSWX�KVS[XL�ERH�IQTPS]QIRX�JSV�XLI�GSQMRK�]IEVW�

The Real Estate Market

The market in the greater Gaborone area has shown some resilience to the challenging economic conditions. We have witnessed a RYQFIV� SJ� RI[� HIZIPSTQIRXW� MR� XLI� VIXEMP�ERH� XLI� GSQQIVGMEP� WIGXSVW�� EPSRK�[MXL� JI[�new residential developments.

%� RYQFIV� SJ� SJ½GI� HIZIPSTQIRXW� EVI�being built in the New CBD, also driven by government regulations. Permits have EPWS� FIIR� KVERXIH� JSV� WSQI� LSWTMXEPMX]�developments and it is envisaged that the built YT�EVIEW�SJ�XLI�2I[�'&(�[MPP�JYVXLIV�KVS[XL�by the year 2019. This will surely add more TVIWWYVI� XS� XLI� VIRXEPW� SJ� SJ½GI� YRMXW� [MXL�increased competition in an already saturated SJ½GI� QEVOIX�� 8LI� MRGVIEWI� SJ� KIRIVEP�business in the New CBD should, however, LEZI� E� TSWMXMZI� IJJIGX� SR� XLI� IRXIVXEMRQIRX�and retails business operating within our Masa Centre.

8LI� HIQERH� JSV� VIWMHIRXMEP� ERH� MRHYWXVMEP�developments is still good however the trend SJ� E� KVEHYEP� WLMJX� XS�S[RIVWLMT� JSV�QIHMYQ�WGEPI�FYWMRIWWIW�MW�QSVI�WMKRM½GERX��8LI�UYEPMX]�SJ� VIWMHIRXMEP� HIZIPSTQIRXW� MW� IZIV� QSVI�important in a competitive market.

The hospitality sector, in the tourism regions, LEW�WLS[R�E�WXVSRK�VIFSYRH�JVSQ�XLI�EHZIVWI�IJJIGX�SJ� XLI�TVIZMSYW�]IEV´W�)FSPE�ITMHIQMG��8LMW� LEW� MQTVSZIH� XLI� GSR½HIRGI� SJ� XLI�developers towards this sector. Some early WMKRW�SJ�E� PSSQMRK�SZIVWYTTP]� MR� XLI�'ETMXEP�'MX]�[MPP� MRGVIEWI�GSQTIXMXMSR�ERH�EJJIGX�XLI�less well-located developments.

3TIVEXMRK�ERH�*MRERGMEP�6IZMI[

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��

%RWVZDQD�6WUDWHJ\

RDCP will continue its path towards GSRWSPMHEXMRK�XLI�TSVXJSPMS�PIWWIRMRK�XLI�SJ½GI�I\TSWYVI�MR�JEZSV�SJ�XLI�VIWMHIRXMEP�WIGXSV�ERH�I\TPSVMRK�RI[�RMGLIW�SJ� XLI�QEVOIX� EW� XLI]�EVI�FIMRK�MHIRXM½IH�

8LI� WPS[� KVS[XL� SJ� XLI� IGSRSQ]� MW� GPIEVP]�creating pressure on rentals and rent GSPPIGXMSRW� JVSQ� XIRERXW�� XS� [LMGL� [I� LEZI�VIWTSRHIH�[MXL�HIHMGEXIH�QEREKIQIRX�JSGYW�

Our implemented Tenants Satisfaction Survey JSVQW�� MRXIRHIH� XS� QSRMXSV� ERH�to improve the Property Manager’s ability to deliver and to strengthen the Tenant relationship, will continue to be a key tool to enhance the Group’s ultimate business TEVXRIV�I\TIVMIRGI�MR�ER�IJJSVX�XS�VIXEMR�XLI�best tenancies.

Regional Strategy The strong Cash position and Balance Sheet SJ�XLI�'SQTER]�LEW�STIRIH�RI[�EZIRYIW�JSV�KVS[XL�ERH�HMJJIVIRX�STTSVXYRMXMIW�EVI�FIMRK�WGVYXMRM^IH��3YV� XEWO� MW�QEHI�QSVI�IJJIGXMZI�EW�[I�HS�LEZI�HMVIGX�TVIWIRGI�[MXL�JSGYWIH�human resources in Namibia, Mozambique ERH�7SYXL�%JVMGE�

8LMW� TEWX� ]IEV� XLI� OI]� JSGYW� JSV� XLI��1EREKIQIRX�[EW�XS[EVHW�XLI�WIXXMRK�YT�SJ�XLI�Corporate Structures and the International Development Team along with its Technical 'SRWYPXERXW� TVITEVMRK� XLI� KVSYRH� JSV� XLI�Developments.

Namibia Convenience Centres

%W�TEVX�SJ�SYV� VIKMSREP� I\TERWMSR�TPER�� ERH�MR� GSRNYRGXMSR� [MXL� E� TVSQMRIRX� &SXW[ERE�6IXEMPIV��[I�LEZI�MHIRXM½IH�XLI�RSVXLIVR�EVIE�SJ�2EQMFME�EW�E� XEVKIX� JSV� XLI�HIZIPSTQIRX�SJ� VIPEXMZIP]� WQEPP� 'SRZIRMIRGI� 'IRXVIW�MR� XLI� JEWX� KVS[MRK� 6IKMSREP� 'ETMXEPW�� 8LI�HIZSPYXMSR� SJ� TS[IV� XS� XLI� 6IKMSRW� F]� XLI�

2EQMFMER� 'IRXVEP� +SZIVRQIRX� MW� MR� JEGX�gaining momentum with increased spend in these towns towards the construction SJ� ,SWTMXEP�� 7GLSSPW�� 4VMWSRW� ERH� EPP� XLI�ERGMPPEVMIW� RIIHIH� JSV� XLIWI� RI[� GIRXIVW��This is boosting population, relocating to the XS[RW�ERH�GVIEXMRK�XLI�RIIH�JSV�GSQQIVGMEP�developments.

As per our priority list plan, land has now been secured in Tsumeb and Katima Mulilo, while the allocation in Outapi, Eenhana and +VSSXJSRXIMR� EVI� MR� TVSKVIWW�� 8LI� HIWMKR�TLEWI�MW�GSQTPIXI�JSV�/EXMQE�1YPMPS�ERH�XLI�TVSNIGX� MW� VIEH]� JSV� WYFQMWWMSR� XS� XLI� 0SGEP�%YXLSVMXMIW� JSV� XLI� 4PERRMRK� ERH� &YMPHMRK�approval processes. The Site groundbreaking ceremony in Katima Mulilo is envisaged early during the third quarter while Tsumeb, and XLI�SXLIV�PSGEXMSRW�[MPP�JSPPS[�WSSR��ERH�EX�E�KVIEXIV�TEGI��EW�[I�IRZMWEKI�E�LMKL�HIKVII�SJ�VITIXMXMSR�JSV�XLI�WGLIQIW��8LEROW�XS�XLI�RI[�EHHMXMSR�XS�SYV�8IEQ�SJ�E�2EQMFMER�VIWMHIRX 4VSNIGX�%WWMWXERX we trust we will considerably WLSVXIR� XLI�±XMQI� XS� QEVOIX²�� %� HIHMGEXIH�4VSNIGX� -QTPIQIRXEXMSR� 1EREKIV� JVSQ� XLI�Botswana Team will be deployed to Namibia HYVMRK� XLI� ½VWX� LEPJ� SJ� ������ EW� WSSR� EW�[I�enter the Construction phase, to ensure the WQSSXL� ERH�IJJIGXMZI� MQTPIQIRXEXMSR�SJ� XLI�TVSNIGX� JVSQ� 'SRWXVYGXMSR� XS� WIGYVMRK� XLI�Tenancies in cooperation with local Estate Agents.;I� ½VQP]� FIPMIZI� XLEX� E� OI]� WXEOI� XS� XLI�WYGGIWW�SJ�XLIWI�RI[�ZIRXYVIW�MW�MR�7YTIVZMWMSR�and Control to implement locally the global ZMWMSR��'SRJIVIRGI�'EPPW�EVI�LIPH�FM�[IIOP]�XS�IRWYVI�IJJIGXMZI�ERH�TVSQTX�GSQQYRMGEXMSR�within the various Regional Teams and their JVIUYIRG]�MW�GSRHYGMZI�XS�ER�IJJIGXMZI�JSPPS[�YT�SJ�EPP�XLI�VIUYMVIH�EGXMSRW�

Mozambique Convenience Centres and Malls

The Country though is still struggling with E� ZIV]� HMJ½GYPX� IGSRSQMG� WMXYEXMSR� HYI� XS�depressed commodity prices has shown

3TIVEXMRK�ERH�*MRERGMEP�6IZMI[�Cont.

Standard House

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��

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

strength and thanks to Direct Foreign Investments (especially but not limited to the Energy Sector) has managed to regain XLI� GSR½HIRGI� SJ� -RXIVREXMSREP� *MRERGI�Authorities. The Metical has been stable in the TEWX�WM\�QSRXLW�ERH�XLI�+SZIVRQIRX´W�HVEJX�FYHKIX� JSV� ����� �ETTVS\�� 97(���� &-0 � [EW�approved showing increase in gas (+25%) and GSEP� ���� ��%W�E�GSRWIUYIRGI�SJ� VIRI[IH�interest in the country and bettered outlook, the real estate sector is witnessing a strong growth with an attractive risk – reward balance.

0EWX�]IEV��XLI�'SRXVSPPMRK�7LEVILSPHIV�SJ�XLI�+VSYT�WIX�YT�ER�3J½GI� MR�1ETYXS�� ERH�SYV�GSPPIEKYI� LEW� FIIR� EGXMZIP]� ERH� WYGGIWWJYPP]�[SVOMRK�EX�WIGYVMRK�STTSVXYRMXMIW�JSV�6('4�

While Management is completing the Corporate set up, two agreements with two HMJJIVIRX�ERH�WSPMH�PSGEP�4EVXRIVW�[IVI�WMKRIH��8LI� 4EVXRIVWLMT� [MPP� NSMRXP]� HIZIPST� X[S�7MXIW�� REQIP]� <EM�<EM� 7LSTTMRK� 'IRXVI� ERH�Zimpeto Shopping Centre.

Xai – Xai Shopping Centre

0SGEXIH� EX� X[S� ERH� LEPJ�LSYV� HVMZI� RSVXL�SJ�XLI�'ETMXEP�'MX]��XLI�GMX]�SJ�<EM�<EM��+E^E�(MWXVMGX � MW� E� REXYVEP� WXST� SZIV� TSMRX� JSV�any traveller going North on the EN1. The Development will comprise a Supermarket ERH� E� RYQFIV� SJ� 0MRI� 7LSTW� �EPVIEH]� FYMPX �along with Warehousing Units. The Anchor Tenant, Choppies Enterprise Ltd, has agreed XS� WMKR� ER�)\TVIWWMSR�SJ� -RXIVIWX� JSV� E�97(�denominated lease.

A Mozambican Consultant team comprising 4VSNIGX� 1EREKIVW�� %VGLMXIGXW� ERH� )RKMRIIVW�has been appointed and is working on GSQTPIXMRK�XLI�HIWMKR�JSV�XLI�ETTVSZEP�F]�XLI�Local Authorities. The Construction Tender has been completed and the bids received are [IPP�[MXLMR�XLI�JIEWMFMPMX]�8LI�JSGYW�MW�RS[�WLMJXMRK�XS[EVHW�WXEVXMRK�XLI�

Construction phase and securing Line Shop Tenants and extensive discussions are being entertained with Local Estate Agents and our Partner.

Zimpeto Shopping Centre

Zimpeto is a densely populated suburb SJ� 1ETYXS�� XLI� TIVJIGX� PSGEXMSR� JSV� E� PEVKI�Shopping Mall anchored by Choppies. The plot is very well connected to the City Centre, ERH�MX�MW�WXVEXIKMGEPP]�PSGEXIH�SR�E�LMKL�XVEJ½G�road guarantying exposure to a diverse range SJ�'PMIRXW��

The Development will be phased as part SJ� XLI� VMWO�QMXMKEXMRK� WXVEXIK]� ERH�[MPP� FSEWX�Supermarkets, Furniture Shops, Restaurants and a Filling Station. The second phase will add shops, warehousing units and, depending SR�XLI�EWWIWWIH�QEVOIX�HIQERH��WSQI�SJ½GI�space.

%� 1S^EQFMGER� %VGLMXIGX� ½VQ� LEW� FIIR�ETTSMRXIH�ERH�MW�GYVVIRXP]�VI½RMRK�XLI�SVMKMREP�GSRGITX� EW� MRXIVREPP]� HVEJXIH�� ;I� I\TIGX�Choppies to sign the EOI on the same terms EW�TIV�XLI�<EM�<EM�HIZIPSTQIRX��;I�I\TIGX�XS� WXEVX�'SRWXVYGXMSR�[MXLMR� XLI�½VWX�LEPJ�SJ�2017.

Many other interesting opportunities are scrutinized as they are brought to our attention.

South Africa Hotel and other opportunities

As previously communicated, the Hotel TVSNIGX� LEH� XS� FI� WIX� EWMHI� HYI� XS�technicalities on the land subdivision. Other opportunities, not limited to the Tourism sector are being investigated. Further to our R4 million investment in the Spear RIET IPO, management is now looking into interesting 4SVXJSPMS�STTSVXYRMXMIW�

3TIVEXMRK�ERH�*MRERGMEP�6IZMI[�Cont.

Isalo Rock Lodge

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Investments and Property Portfolio

ICC Flats redevelopment started in April 2016 with the construction works expected to last 24 months. It consists SJ�E� JYRGXMSREPP]�HIWMKRIH�QM\�SJ���FIHVSSQW�����RSW ����FIHVSSQW� ���� RSW � ERH� �� FIHVSSQW� PSJXW� ���� RSW � ERH�LEW�E� PEVKI�STIR� XIVVEGI�EVIE�[MXL�QSHIVR�FVEEM� JEGMPMXMIW�JSV� JEQMP]� ERH� JVMIRH� IRXIVXEMRQIRX� ERH� VIPE\EXMSR��8LI�HIZIPSTQIRX�MW�TVSKVIWWMRK�WPMKLXP]�ELIEH�SJ�WGLIHYPI��8LI�I\UYMWMXIP]�HIWMKRIH�¾EXW�[MPP�GSQI�[MXL� XEWXIJYPP]�½RMWLIH�½XXIH�OMXGLIRW��[EVHVSFIW�[MXL�EPP�YRMXW�JYPP]�EMV�GSRHMXMSRIH��8LI�TVIQMWIW� EPWS� GSQTVMWIW�SJ� PYWL�KEVHIR�ERH�E� EQTPI�WM^I�W[MQQMRK�TSSP�[MXL�FVEEM�ERH�GSQJSVXEFPI�WMXXMRK�EVIE�

8LI�1EWE�'IRXVI� HIZIPSTQIRX�� E� VIQEVOEFPI� WYGGIWW� JSV�6('4� ERH� RSXEFP]� XLI� ½VWX� QM\IH� YWI� HIZIPSTQIRX� MR�Botswana, continues to gather strength while enhancing its SJJIVMRK�XS�4EXVSRW��

Thirty serviced apartments, managed by Masa Square Hotel, [IVI�SJ½GMEPP]�STIRIH�MR�1E]������XS�FSSWX�XLI�LSWTMXEPMX]�SJJIVMRK�ERH�XS�VIWTSRH�XS�QEVOIX�GLEPPIRKIW�SJ�SZIVWYTTP]�SJ� SJ½GI� WTEGI��8LI� I\UYMWMXI� )YVSTIER� HIWMKR� HMHR´X� KS�YRRSXMGIH��ERH�XLSYKL�XLI�JYPP�IGSRSQMG�IJJIGX�SJ�XLI�WYMXIW�will come into play in the next period, they are already most WSYKLX� EJXIV�[MXL� E� JI[�'SVTSVEXIW� WIGYVMRK� PSRK� WXE]MRK�contracts. A revamped Hotel Lobby and new Restaurants EVI�GSQTPIXMRK�XLI�SJJIVMRK�JSV�SYV�-RXIVREXMSREP�ERH�0SGEP�guests.

The Masa Centre recorded almost 100% occupancy during the reporting period. The subsidiary Three Partners Resort �4X] �0XH�JSV�XLI�½VWX�XMQI�TEMH�HMZMHIRH�XS�MXW�WLEVILSPHIVW��

8LI�STIVEXMRK� VIWYPXW�SJ� XLI�'LSFI�1EVMRE�0SHKI�[LIVI�very pleasing 2016 – the internal budgets were exceed and [IPP�EFSZI�XLI�TVMSV�]IEV�TIVJSVQERGI��GSR½VQMRK�XLI�0SHKI�EW� TVIJIVVIH� HIWXMREXMSR� FSXL� JSV� PSGEP� ERH� MRXIVREXMSREP�travellers visiting the Chobe Region.

-WEPS�6SGO�0SHKI�LEW�TIVJSVQIH� MR� PMRI�[MXL�I\TIGXEXMSRW�ERH� XLI� TVSTIVX]� MW� RS[� QEOMRK� E� WQEPP� TVS½X� JVSQ�STIVEXMSRW�� [I� I\TIGX� XLMW� XS� MQTVSZI� MR� XLI� RI\X� ]IEV��However, the investment reported a small loss, this is due to

ER�YRVIEPM^IH�I\GLERKI�PSWW���;I�LEZI�VIGIMZIH�JI[�SJJIVW�JSV�XLI�TVSTIVX]�ERH�XLMW�MW�E�WMKR�XLEX�XLI�0SHKI�MW�EXXVEGXMRK�XLI�MRXIVIWX�SJ�TVSQMRIRX�PSGEP�MRZIWXSVW��[I�WLEPP�GSRWMHIV�I\MXMRK�XLI�1EHEKEWGEV�QEVOIX�WLSYPH�ER�EHIUYEXI�SJJIV�FI�received.

The company completed its new Gaborone West ;EVILSYWIW�QMRM�YRMXW���8LI�TVIQMWIW�GSQTVMWIW�SJ����YRMXW�MR� E� XSXEP�SJ������� WUQ� PIXXEFPI� EVIE� ERH�FSEWXW�SJ�����SGGYTERG]�MR�PIWW�XLER���]IEV�JVSQ�GSQQMWWMSRMRK�

)LQDQFLQJ�DQG�&DVK�)ORZ

%X�XLI�IRH�SJ�(IGIQFIV�������XLI�+VSYT´W�FSVVS[MRKW�ERH�EZEMPEFPI�JEGMPMXMIW�GSRWMWXIH�SJ���9RHVE[R�FERO�SZIVHVEJX�JEGMPMX]�SJ�4��QMPPMSR�JVSQ�&EVGPE]W�&ERO�SJ�&SXW[ERE�0MQMXIH�- Long term borrowings amounting to P224.0 million.

8LI� RIX� PSRK� XIVQ� HIFX� SJ� XLI� KVSYT�[EW� 4�����QMPPMSR��EJXIV�HIHYGXMRK�4������QMPPMSR�SJ�GEWL�ERH�GEWL�IUYMZEPIRXW��EKEMRWX� ER� MRZIWXQIRX� ERH� TVSTIVX]� TSVXJSPMS� ZEPYI� MR�I\GIWW�SJ�4����FMPPMSR��TVSZMHMRK�WMKRM½GERX�GETEGMX]�XS�VEMWI�EHHMXMSREP�½RERGI�

International Financial Reporting Standards8LI� +VSYT´W� YRHIVP]MRK� ½RERGMEP� WXEXIQIRXW� LEZI� FIIR�prepared in accordance with International Financial 6ITSVXMRK� 7XERHEVHW� �±-*67² �� 8LI� TVMRGMTEP� EGGSYRXMRK�policies are consistent in all material respects with those adopted in the previous year.

Financial Results and HighlightsThe Group has consistently achieved good results due to the [IPP�FEPERGIH�TSVXJSPMS�GEXIVMRK�JSV�ZEVMSYW�WIGXSVMEP�RIIHW�in the market. Though the reporting period showed some tough economic challenges, robust management practices and long-term relationships built with our business partners GSRXVMFYXIH�XS�XLI�EGLMIZIQIRX�SJ�XLI�KSSH�VIWYPXW�

RevenueContractual lease rental revenue increased by 6.2% to P88,5 million (2015: P83,3 million). This growth is largely due to XLI�I\GIPPIRX�TIVJSVQERGI�SJ�'LSFI�1EVMRE�0SHKI��VIRXEP�VIZIRYI�PMROIH�XS�XYVRSZIV�SJ�XLI�0SHKI ��

3TIVEXMRK�ERH�*MRERGMEP�6IZMI[�Cont.

Page 15: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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Operating and Finance Costs3TIVEXMRK� ERH� ½RERGI� GSWXW� LEZI� VIQEMRIH� WXEFPI��%� ��MRGVIEWI� MR� GSWXW� [EW� I\TIVMIRGIH� JVSQ� ����� XS� ������3TIVEXMRK�GSWX�GSRXVSP� MW�E�OI]�JSGYW�SJ�QEREKIQIRX�ERH�XLI�VITE]QIRX�SJ�XIVQ�PSERW�LEW�WIIR�E�VIHYGXMSR�MR�½RERGI�costs.

Taxation8LI�XE\�JSV�XLI�]IEV�[EW�4������QMPPMSR��������4�����QMPPMSR �

Earnings Per Linked Unit)EVRMRKW� EXXVMFYXEFPI� XS� XLI� S[RIVW� SJ� XLI� 'SQTER]�MRGVIEWIH�F]� �����8LI� EZIVEKI� RYQFIV�SJ� PMROIH� YRMXW� MR�MWWYI�MRGVIEWIH�F]������JVSQ������

Debenture Interest/DividendsThe total distribution per linked unit is calculated on the RYQFIV� SJ� PMROIH� YRMXW� MR� YWI� EX� HEXI� SJ� HMWXVMFYXMSR��8LI�distribution ratio between dividends to interest is variable. The dividend and debenture interest expense increased by 38.5% to P29.5 million (2015: P21.3 million).

Investment and Property Portfolio8LI�MRZIWXQIRX�ERH�TVSTIVX]�TSVXJSPMS�MRGVIEWIH�F]����XS�P1,237 million (2015:P1,103 million). The largest contributor XS�XLI�KVS[XL�MR�XLI�TSVXJSPMS�ZEPYI�VIPEXIW�XS�XLI�JEMV�ZEPYI�KEMRW� SJ� XLI� 'LSFI� 1EVMRE� 0SHKI� TVSTIVX]� [LMGL� [EW�independently valued this year.

Shareholders’ Funds7LEVILSPHIVW � JYRHW� EX� ��� (IGIQFIV� ����� EQSYRXIH� XS�4������QMPPMSR� ������� 4������QMPPMSR �� ER� MRGVIEWI�SJ� ����VIWYPXMRK� MR� %HNYWXIH� 2IX�%WWIX�:EPYI� TIV� PMROIH� YRMX� SJ�4������������4���� ��ER� MRGVIEWI�SJ�����6IXYVR�SR�IUYMX]�now stands at 11% (2015: 9%).

Long-term BorrowingsThe Group’s long-term borrowings at 31 December 2016 amounted to P224.0 million (2015: P211.6million), giving a Long-term debt to gross property and investments assets VEXMS�SJ����������������� �

Jacopo Pari&KLHI�([HFXWLYH�2I¼FHU

Upcoming RDC Flats 8LSPS�3J½GIW

Masa CentreG-West Warehouses

Page 16: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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Property Name Form of Lease Title Deed Number

Location of Property Sector Lettable Area

Valuation

Masa Centre 50 Year State Leasehold MA 367/2008 Lot 54353, Gaborone 3J½GIW��6IXEMP��,SWTMXEPMX]

26,961 535,053,160

Chobe Marina Lodge Leasehold 512/2001 Lease Area No. 4-AO, Kasane Hospitality 66 rooms 180,000,000

Standard House Freehold 133/97 Lots 1 124 to 1 130 in Gaborone Ext. 3

3J½GIW 6,564 135,000,000

8LSPS�%��&�ERH�4LEWI II

50 Year State Leasehold 1695/96/2000 0SXW�����������������Gaborone

3J½GIW 4,816 65,560,000

ICC Flats Freehold142/71

143/71,889/95Lots 2551, 2552,2558,

2559,2560 in Gaborone Residential 20

apartments

55,408,211

Isalo Rock Lodge 99 Year Lease 02/MCT/SG Lot 480-AU Region d'lhrombe, Madagascar

Hospitality 60 rooms 52,109,000

Gaborone West Warehouses

50 Year State Leasehold 2434/2000 Lots 22017/18, Gaborone Industrial 7,282 41,301,878

European Delegation Freehold 1841/2003 Lot 758, Gaborone 3J½GIW 1,496 31,526,654

Mebala House Freehold 48/70 0SXW�����������������MR�Gaborone Ext. 3

Retail 1,330 27,370,254

Lotsane Complex 50 Year Tribal Lease MA 62/95 Lot 1707 Palapye Retail

3,890

25,836,540

Diamond Centre 50 Year State Leasehold 514/95,661/95185/95

0SX������.[ERIRK��0SX�������.[ERIRK��0SX������.[ERIRK

Retail 2,251 17,354,383

6IEPIWXEXI�3J½GI�TEVO 50 Year State Leasehold 432/80 Lot 5624, Gaborone 3J½GIW 1,147

15,634,000

Broadhurst Business Centre

50 Year State Leasehold MA 15/97 Lease area 234KO on Lot 1 0211 in Gaborone

3J½GIW 1,804 15,408,952

Phakalane Warehouses Freehold 1448/99 Lot 21306 Phakalane Industrial 2,359 13,783,767

Boswa Centre 50 Year Tribal Lease 75/950SX����������7IVS[I%KVIIQIRX�SJ�0IEWI�2S��������SJ��������

6IXEMP��3J½GIW

1,518

8,742,935

Chobe Commercial Centre

50 Year State Leasehold 158/88 Lot 914 Kasane in Chobe Admin District

6IXEMP��3J½GIW

1,150 8,688,480

Roots Tower 50 Year Tribal Lease 13/97 Lot 208 Maun Notarial Deed SJ�0IEWI�������SJ��������

6IXEMP��3J½GIW

1,070 6,933,376

Standard Serowe 50 Year Tribal Lease 92/95 Lot 679 Serowe 6IXEMP��3J½GIW

847 4,420,696

Tsodilo Centre 50 Year State Leasehold 105/95 Lot 194 Maun Retail

492

4,264,884

Pep House 50 Year Tribal Lease MA 75/97 Lot 443 Serowe Retail 471 3,870,443

Mole Mall 50 Year Tribal Lease MA 4/97 Lot 617 Molepolole Undeveloped -

3TIVEXMSR�ERH�*MRERGMEP�6IZMI[�Cont.

��8LMW�TVSTIVX]�LEW�FIIR�GPEWWM½IH�EW�LIPH�JSV�WEPI�EX�]IEV�IRH�

*

Page 17: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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8LI�&SEVH�SJ�(MVIGXSVW

Jacopo Pari� 'LMIJ�)\IGYXMZI�3J½GIV%KIH����'MZMP�)RKMRIIV��1EWXIVW�HIKVII ��LMW�GEVIIV�WXEVXIH�MR�%GGIRXYVI��XLI�7XVEXIK]�ERH�1EREKIQIRX�'SRWYPXMRK�½VQ��8LMW�IRKEKIQIRX�IREFPIH�him to get wide exposure to large and complex corporate environments FSXL� MR� )9� ERH�97�� *I[� ]IEVW� PEXIV� LI� NSMRIH� XLI� JEQMP]� GSRWXVYGXMSR�company in Italy. This work experience, both technical and managerial, [EW�GSRHYGMZI� XS�LMW�ETTSMRXQIRX�EW�+VSYT�+IRIVEP�1EREKIV� JSV� XLI�6IEPIWXEXI� +VSYT� SJ� 'SQTERMIW� MR� ������ � ,I� LEW� FIIR� MRZSPZIH� MR�Construction, Property Development and Investment in Botswana since XLIR�� ,I�[EW� ETTSMRXIH� EW� XLI� 'LMIJ� )\IGYXMZI�3J½GIV� JSV� &SXW[ERE�3TIVEXMSRW� MR� *IFVYEV]� ����� ERH� LI� MW� MR� GLEVKI� SJ� XLI� -RXIVREXMSREP�Developments. $QGUHZ�%UDGOH\ Non-Executive Independent DirectorAndrew Bradley, who has completed legal and business degrees, was ETTSMRXIH� EW� ER� MRHITIRHIRX� RSR�I\IGYXMZI� HMVIGXSV� SJ� XLI�'SQTER]�EX� XLI�QIIXMRK� SJ� XLI� &SEVH� SJ� (MVIGXSVW� LIPH� SR� ���1E]� ������ ,I�MW� GYVVIRXP]� ')3� SJ� *MWGEP� 4VMZEXI� 'PMIRXW� E� [IEPXL� QEREKIQIRX� ERH�MRZIWXQIRX� GSQTER]� ERH�[EW� TVIZMSYWP]� ')3� SJ�3PH�1YXYEP�;IEPXL��&IJSVI�NSMRMRK�3PH�1YXYEP��1V�&VEHPI]�[EW�XLI�')3�SJ�%GWMW�7SYXL�%JVMGE�+VSYT��[LMGL�[EW� EGUYMVIH� F]�3PH�1YXYEP��,I� MW� ER�%HZSGEXI� SJ� XLI�7YTVIQI�'SYVX�SJ�7SYXL�%JVMGE�ERH�MW�E�'IVXM½IH�*MRERGMEP�4PERRIV���1V�&VEHPI]�LEW�GS�EYXLSVIH�E�RYQFIV�SJ�TYFPMGEXMSRW�MR�XLI�½RERGMEP�WIVZMGIW�industry.

Kate Maphage Non-Executive Independent Director1EWXIVW� MR�&YWMRIWW�0IEHIVWLMT��1&0 �ERH�&EGLIPSV�SJ�'SQQIVGI��%R�IRXVITVIRIYV�[LS�MW�MRZSPZIH�MR�MRZIWXQIRXW�EGVSWW�E�ZEVMIX]�SJ�WIGXSVW�including property, engineering, energy, services and entertainment. She is GYVVIRXP]�1EREKMRK�(MVIGXSV�SJ�*PMKLX�'SRRIGX�ERH�7SPEVSRI��GSQTERMIW�in the Tourism and Resource Sectors respectively and she is an active participant in the Solar Energy industry development initiatives. Kate is E� OI]� JSYRHMRK�QIQFIV� SJ� XLI� GSRWSVXMYQ�[LMGL� JSVQIH� XLI�QSFMPI�telecommunications company, Mascom Wireless (Pty) Ltd. She held I\IGYXMZI�TSWMXMSRW�MR�XLI�WEQI�GSQTER]�JSV�E�RYQFIV�SJ�]IEVW��-R�EHHMXMSR�to serving on the RDC Board and its Audit Committee, Kate serves on XLI� &SEVH�� 6IQYRIVEXMSR� 'SQQMXXII� ERH� 2SQMREXMSR� 'SQQMXXII� SJ��Sechaba Breweries Limited.

Guido R Giachetti Executive ChairmanAged 54, Civil Engineer, Masters in Business Management and Transport, AMP (Harvard Business School), IEP (INSEAD), Alumni Association (EPFL, -27)%(��,&7 ��%W�'LMIJ�)\IGYXMZI�3J½GIV�SJ�XLI�6IEPIWXEXI�+VSYT��LI�LEW�FIIR�MRZSPZIH�MR�TVSTIVX]�HIZIPSTQIRX�ERH�MRZIWXQIRXW�JSV�SZIV����]IEVW��,EW�FIIR�E[EVHIH�XLI�3VHIV�SJ�1IVMX�F]�8LI�/MRK�SJ�7TEMR��,I�MW�XLI�,SRSVEV]�'SRWYP�SJ�-XEP]�ERH�7TEMR�MR�&SXW[ERE�ERH�EGXMZIP]�involved in community works as a Paul Harris Fellow. Lesang Magang Lead Independent Non-Executive Director%KIH�����0IWERK�LSPHW�E�0E[�(IKVII�JVSQ�XLI�9RMZIVWMX]�SJ�&MVQMRKLEQ��Lesang was appointed as Lead Independent Non-executive Director in ������ERH�MW�EPWS�E�HMVIGXSV�SJ�4%1��4VSTIVX]�EWWIX�QEREKIQIRX�SJ�6(' �ERH�SXLIV�GSQTERMIW��,I�MW�XLI�1EREKMRK�(MVIGXSV�SJ�4LEOEPERI�)WXEXIW��E�QENSV� XS[RWLMT� ERH� TVSTIVX]� HIZIPSTQIRX� GSQTER]� MR� &SXW[ERE� ��'LEMVQER�SJ�%½RMXEW�[LMGL� MW� � PMWXIH�SR�XLI�&SXW[ERE�7XSGO�)\GLERKI�venture Board. A motivational speaker on youth development and entrepreneurship.

Giorgio Giachetti Non-Executive DirectorAged 74, Civil Engineer (Masters degree). On site experience in construction since 1968. In 1970 started investing in Botswana and HIZIPSTIH� TVSTIVXMIW�� WSQI� SJ� [LMGL� EVI� RS[� TEVX� SJ� XLI� 6('�4VSTIVXMIW�TSVXJSPMS�,I�MW�E�(MVIGXSV�SJ�QER]�GSQTERMIW�MR�&SXW[ERE�ERH�MRXIVREXMSREPP]� Saumendu Sinha Company SecretaryMr Saumendu Sinha is a Pricewaterhouse Coopers representative and JYP½PPW�XLI�HYXMIW�SJ�GSQTER]�WIGVIXEV]� Keith Jefferis Non-Executive Independent Director (IZIPSTQIRX� QEGVSIGSRSQMWX� ERH� ½RERGMEP� WIGXSV� WTIGMEPMWX�� ,I�MW�1EREKMRK�(MVIGXSV� SJ� )GSRWYPX� &SXW[ERE� �4X] � 0XH�� ERH� MW� E� JSVQIV�(ITYX]�+SZIVRSV�SJ�XLI�&ERO�SJ�&SXW[ERE�,I� LEW� GSRWYPXIH� JSV� MRXIVREXMSREP� SVKERMWEXMSRW� WYGL� EW� XLI�;SVPH�&ERO�� XLI�%JVMGER�(IZIPSTQIRX� &ERO�� 97%-(�� 7%('��92-(3��92(4��KSZIVRQIRXW�ERH�GIRXVEP�FEROW�MR�ZEVMSYW�%JVMGER�GSYRXVMIW��ERH�E�ZEVMIX]�SJ�FEROW�ERH�SXLIV�TVMZEXI�WIGXSV�½VQW�MR�&SXW[ERE��,I�[EW�ETTSMRXIH�as a Director in March 2014.

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Page 18: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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John Hinchliffe: .SLR�,MRGLPMJJI�LIEHW�.SLR�,MRGLPMJJI�'SRWYPXERXW��ER�EGGSYRXMRK�ERH�GSRWYPXMRK�TVEGXMGI� MR�+EFSVSRI��,I�[EW�ETTSMRXIH�EW�'LEMVQER�SJ�XLI�EYHMX�GSQQMXXII�MR�1E]�������,I�MW�EPWS�E�(MVIGXSV�SJ�ZEVMSYW�GSQTERMIW��MRGPYHMRK�&SXW[ERE�-RWYVERGI�,SPHMRKW�0MQMXIH��&-,0 �ERH�MXW�WYFWMHMEVMIW�&SXW[ERE�0-JI�-RWYVERGI�0MQMXIH��GLEMV �ERH�0IKEP�+YEVH��GLEMV ��&SXW[ERE�-RWYVERGI�'SQTER]�0MQMXIH��&-' �ERH�WIZIVEP�WQEPP�JEQMP]�GSQTERMIW��.SLR�MW�SR�XLI�EYHMX�GSQQMXXIIW�JSV�&-,0�ERH�MXW�WYFWMHMEVMIW�ERH�&-'��GLEMV ��.SLR�MW�EPWS�SR�XLI�&SEVHW�SJ�/EPELEVM�'SRWIVZEXMSR�7SGMIX]��ERH�'EQTLMPP�'SQQYRMX]�8VYWX�ERH�WIVZIW�EW�8VIEWYVIV�JSV�FSXL�SVKERMWEXMSRW�Jacopo Pari �WII�TVS½PI�YRHIV�±&SEVH�SJ�(MVIGXSVW²��Kate Maphage �WII�TVS½PI�YRHIV�±&SEVH�SJ�(MVIGXSVW²�Lesang Magang :��WII�TVS½PI�YRHIV�±&SEVH�SJ�(MVIGXSVW²

Secretaries /Transfer SecretariesPricewaterhouse Coopers (Pty) Ltd4PSX�������*EMVKVSYRH�3J½GI�4EVOP O Box 294, Gaborone, Botswana

Independent Auditor(IPSMXXI��8SYGLI4PSX��������*EMVKVSYRH�3J½GI�4EVOPO Box 778, Gaborone, Botswana

Property Managers/Asset ManagersProperty and Asset Management LimitedP O Box 405391, Gaborone, Botswana

Stockbrokers%JVMGER�%PPMERGI�&SXW[ERE�7IGYVMXMIWPlot 64511, Exchange House*EMVKVSYRHW�3J½GI�4EVO��Gaborone, BotswanaBankers*MVWX�2EXMSREP�&ERO�SJ�&SXW[ERE�0MQMXIH&EVGPE]W�&ERO�SJ�&SXW[ERE�0MQMXIH%JVMGER�&EROMRK�'SVTEVEXMSR�SJ�&SXW[ERE�0MQMXIH

Property ValuersWilly Kathurima AssociatesP O Box 58GaboroneLegal AdvisorsNeill Armstrong'SPPMRW�2I[QER��'S�P O Box 882, Gaborone

Page 19: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

8LI�HMVIGXSVW�TVIWIRX�XLIMV�ERRYEP�VITSVX�XS�XLI�WLEVILSPHIVW��XSKIXLIV�[MXL�XLI�EYHMXIH�½RERGMEP�WXEXIQIRXW��JSV�XLI�]IEV�IRHIH�31 December 2016.

3ULQFLSDO�$FWLYLWLHV�DQG�%XVLQHVV�5HYLHZ6('�4VSTIVXMIW�0MQMXIH��±6('4² �MW�E�ZEVMEFPI�VEXI�PSER�WXSGO�GSQTER]�TYFPMGP]�UYSXIH��MRGSVTSVEXIH�MR�&SXW[ERE�ERH�UYSXIH�TYFPMGP]�SR�XLI�&SXW[ERE�7XSGO�)\GLERKI��6('4�MW�E�VIKMSREP�TVSTIVX]�FYWMRIWW�JSGYWIH�SR�HIVMZMRK�MXW�VIZIRYI�JVSQ�XLI�VIRXEP�SJ�MRZIWXQIRX�TVSTIVXMIW�ERH�MHIRXMJ]MRK�HIZIPSTQIRX�STTSVXYRMXMIW�%�HIXEMPIH�FYWMRIWW�VIZMI[�ERH�JYXYVI�HIZIPSTQIRXW�MW�MRGPYHIH�MR�XLI�STIVEXMRK�ERH�½RERGMEP�VIZMI[�SR�TEKIW���XS����

Results for The Year(IXEMPW�SJ�XLI�VIWYPXW�JSV�XLI�]IEV�IRHIH����(IGIQFIV������EVI�WIX�SYX�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�SJ�XLI�½RERGMEP�statements on page 28.

Subsidiaries8LI�HIXEMPW�SJ�XLI�'SQTER]´W�MRXIVIWX�MR�TVSTIVX]�S[RMRK�WYFWMHMEVMIW�EVI�WIX�SYX�MR�2SXI���XS�XLI�½RERGMEP�WXEXIQIRXW�

Stated CapitalAs at 31 December 2016, the Company had 347,547,222 linked units in issue (2015: 347,547,222).

Distribution to Unit Holders and Distribution Policy(MWXVMFYXMSRW�XS�PMROIH�YRMX�LSPHIVW�EVI�TVMQEVMP]�MR�XLI�JSVQ�SJ�HIFIRXYVI�MRXIVIWX��8LI�HMWXVMFYXMSR��QEHI�FM�ERRYEPP]��ZEVMIW�[MXL�XLI�STIVEXMRK�TIVJSVQERGI�SJ�XLI�+VSYT��(IXEMPW�SR�XLI�HMWXVMFYXMSRW�EVI�MRGPYHIH�MR�XLI�STIVEXMRK�ERH�½RERGMEP�VIZMI[�SR�TEKIW���XS�����

Distribution to Unit holders (thebe)

Interest Dividend Total2016Interim 7.17 0.40 7.57Final 0.00 0.91 0.91 7.17 1.31 8.48 2015Interim 6.81 0.14 6.95Final 0.21 0.36 0.57 7.02 0.50 7.52

Directors and Secretary1V�� �%RHVI[�&VEHPI]�[EW� ETTSMRXIH� EW� ER� MRHITIRHIRX� RSR�I\IGYXMZI� HMVIGXSV� SJ� XLI�'SQTER]� EX� XLI�QIIXMRK� SJ� XLI� &SEVH�SJ�Directors held on 26 May 2016.

Interests of Directors and Secretary8LI�HMVIGXSVW�ERH�WIGVIXEV]�[LS�LIPH�SJ½GI�EX����(IGIQFIV������LEH�RS�MRXIVIWXW��SXLIV�XLER�XLSWI�WLS[R�FIPS[��MR�XLI�WLEVIW�SJ�the Company or Group companies.

Held Directly Held Indirectly

G. R. Giachetti - 36,573,889G. Giachetti - 54,773,589.��4EVM���� 769,649 -L. Magang 175,908 -/��.IJJIVMIW��� - -K. C. Maphage - -A. Bradley - -

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Substantial Holdings8LI�HMVIGXSVW�LEZI�FIIR�RSXM½IH�SJ�XLI�JSPPS[MRK�WMKRM½GERX�MRXIVIWXW�MR�XLI�SVHMREV]�WLEVI�GETMXEP�SJ�XLI�'SQTER]�EX�31 December 2016.

Table Of Substantial Holdings

Major linked unit holders Number of linked units %Realestate Financiere SA 109,721,667 31.57%Chobe Financial Corporation 54,773,589 15.76%Aspera Holdings Limited 13,017,463 3.75%

Directors’ Interests in Contracts8LI�JSPPS[MRK�HMVIGXSVW��+�6��+MEGLIXXM�ERH�+��+MEGLIXXM��LEZI�E�FIRI½GMEP�MRXIVIWX�MR�E�QEXIVMEP�GSRXVEGX�XS�[LMGL�XLI�'SQTER]�SV�E�WYFWMHMEV]�[EW�E�TEVX]�HYVMRK�XLI�]IEV��(IXEMPW�SJ�[LMGL�EVI�HMWGPSWIH�MR�XLI�'SVTSVEXI�+SZIVRERGI�7XEXIQIRX�

8LI�'SQTER]�LEW� E� WIVZMGI� GSRXVEGX�[MXL�4VSTIVX]� ERH�%WWIX�1EREKIQIRX� 0MQMXIH� �4%1 �� HIXEMPW� SJ�[LMGL� EVI�HMWGPSWIH� MR� XLI�'SVTSVEXI�+SZIVRERGI�VITSVX��+��6��+MEGLIXXM��+��+MEGLIXXM��0��1EKERK�ERH�.��4EVM�EVI�HMVIGXSVW�SJ�4%1�

3RI�SJ�XLI�HMVIGXSVW��+��+MEGLIXXM�LEW�ER�MRHMVIGX�MRXIVIWX�MR�XLI�+VSYT´W�MRZIWXQIRX�MR�E�NSMRX�ZIRXYVI�GSQTER]��,17��7SGMqXq�%RSR]QI�(HMS1).��

Key Performance Indicators (KPI’s)8LI�+VSYT�GSRWMHIVW�XLI�JSPPS[MRK�QIEWYVIW�EW�FIMRK�MQTSVXERX�MRHMGEXSVW�SJ�XLI�YRHIVP]MRK�TIVJSVQERGI�SJ�XLI�FYWMRIWW�

Net Asset Value8LI�OI]�PSRK�XIVQ�½RERGMEP�SFNIGXMZI�JSV�XLI�+VSYT�MW�KVS[XL�MR�MXW�RIX�EWWIX�ZEPYI�TIV�PMROIH�YRMX�

Net Debt to Gross Property Assets%�WIGSRH�MQTSVXERX�½RERGMEP�SFNIGXMZI�SJ�XLI�+VSYT�MW�XS�IWXEFPMWL�ERH�QEMRXEMR�ER�ETTVSTVMEXI�FEPERGI�WLIIX�WXVYGXYVI�XLEX�TVSZMHIW�MX�[MXL�EHIUYEXI�JYRHMRK�XS�JYP½P�MXW�QIHMYQ�XS�PSRK�XIVQ�SFNIGXMZIW�[LMPI�EX�XLI�WEQI�XMQI�QEMRXEMRMRK�E�TVYHIRX�VEXMS�SJ�RIX�HIFX�XS�gross property assets.

Returns from investment and development properties%�XLMVH� MQTSVXERX�½RERGMEP�SFNIGXMZI� MW� XS�STXMQMWI�VIXYVRW� JVSQ�XLI�+VSYT´W�TVSTIVX]�TSVXJSPMS��*SV� MRZIWXQIRX�TVSTIVXMIW�� XLMW� MW�EGLMIZIH�F]�GSRGIRXVEXIH�EWWIX�QEREKIQIRX�ERH�VIXIRXMSR�SJ� XIRERXW� XS�QE\MQMWI� VIRXEP�]MIPHW��*SV�HIZIPSTQIRX�TVSTIVXMIW�� MX� MW�EGGSQTPMWLIH�XLVSYKL�]MIPHMRK�YT�TSXIRXMEP�XIRERGMIW�JSV�RI[�HIZIPSTQIRXW�ERH�GSWX�GSRXVSP�

Financial Risk Management8LI�+VSYT´W�EGXMZMXMIW�I\TSWI�MX�XS�E�ZEVMIX]�SJ�½RERGMEP�VMWOW�MRGPYHMRK�MRXIVIWX�VEXI��JSVIMKR�GYVVIRG]��JYRHMRK�ERH�GVIHMX�VMWOW��8LIWI�½RERGMEP�VMWOW�EVI�QEREKIH�F]�XLI�&SEVH�ERH�VIZMI[IH�F]�XLI�%YHMX�ERH�6MWO�'SQQMXXII��EW�HIWGVMFIH�MR�2SXI����XS�XLI�½RERGMEP�statements.

Principal Risks and Uncertainties

�8LI�TVMRGMTEP�VMWOW�ERH�YRGIVXEMRXMIW�XLEX�XLI�+VSYT�JEGIW�EVI�

Property value� ��8LI� TIVJSVQERGI� SJ� XLI�+VSYT� MW� HIXIVQMRIH� TVMRGMTEPP]� F]� XLI� ZEPYIW� SJ� MXW� TVSTIVX]� EWWIXW�� [LMGL�� MR� XYVR�� EVI�HITIRHIRX�SR�E�ZEVMIX]�SJ�JEGXSVW�ETTP]MRK�MR�XLI�QEVOIXW�MR�[LMGL�6('4�STIVEXIW��MRGPYHMRK� -�PSGEP�IGSRSQMG�GSRHMXMSRW��EW�EJJIGXIH�F]�KSZIVRQIRX�TSPMG]��PIKMWPEXMSR��IGSRSQMG�KVS[XL��MRXIVIWX�VEXIW�ERH�MR¾EXMSR��ERH� ��WYTTP]�SJ�ERH�HIQERH�JSV�TVSTIVX]��ERH�XLIMV�MQTEGX�SR�VIRXEP�PIZIPW�8LI�ZEPYIW�SJ�MRHMZMHYEP�TVSTIVXMIW�EVI�HIXIVQMRIH�F]�XLIMV�WTIGM½G�YWEKI�ERH�PSGEXMSRW��XLI�UYEPMX]�SJ�XLIMV�XIRERXW�ERH�XLI�VIRXW�TEMH�F]�XLIQ�ERH�F]�XLIMV�TSXIRXMEP�JSV�EPXIVREXMZI�YWEKI�SV�VIHIZIPSTQIRX��8LI�TVSTIVX]�TSVXJSPMS�MW�MRHITIRHIRXP]�ZEPYIH�IZIV]���]IEVW�

(MVIGXSV W�6ITSVX�Cont.

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Expansion and related funding : The Group’s ability to realise its business strategy is dependent on management’s ability to source new TVS½XEFPI�TVSTIVX]�STTSVXYRMXMIW��XS�I\TPSMX�XLI�HIZIPSTQIRX�STTSVXYRMXMIW�[MXLMR�MXW�TVSTIVX]�TSVXJSPMS�ERH�XS�JYRH�XLIWI�EW�VIUYMVIH��8LI�FSEVH�LEW�QMXMKEXIH�XLIWI�VMWOW�F]�XLI�MRHMVIGX�ETTSMRXQIRX�SJ�E�WYMXEFP]�UYEPM½IH�QEREKIQIRX�XIEQ�IQTPS]IH�F]�4%1�ERH�F]�GSRXMRYMRK�XS�WSYVGI�ETTVSTVMEXI�½RERGMRK�EVVERKIQIRXW�XS�JYRH�MXW�TPERW�

Liquidity :�4VSTIVX]�EWWIXW�EVI�VIPEXMZIP]�MPPMUYMH��7YGL�MPPMUYMHMX]�[MPP�RSX�EJJIGX�XLI�+VSYT´W�EFMPMX]�XS�ZEV]�MXW�TSVXJSPMS�EW�XLI�PSGEXMSR�ERH�UYEPMX]�SJ�XLI�TSVXJSPMS�[SYPH�IREFPI�XLI�'SQTER]�XS�HMWTSWI�SJ�SV�PMUYMHEXI�TEVX�SJ�MXW�TSVXJSPMS�MR�E�XMQIP]�QERRIV�ERH�EX�WEXMWJEGXSV]�prices.

Currency : 8LI�+VSYT�TVIWIRXW� MXW�½RERGMEP� MRJSVQEXMSR� MR�4YPE��%� WMKRM½GERX�TVSTSVXMSR�SJ� MXW�TVSTIVX]�TSVXJSPMS� MW� PSGEXIH� MR� XLI�&SXW[ERE�ERH��GSRWIUYIRXP]��E�WMKRM½GERX�TEVX�SJ�MXW�VIRXEP�MRGSQI�ERH�E�WMKRM½GERX�TVSTSVXMSR�SJ�MXW�TVSTIVX]�EWWIXW�EVI�HIRSQMREXIH�MR�4YPE��8LI�FSEVH�LEW�QMXMKEXIH�XLI�VMWO�F]�QEOMRK�WYVI�XLEX�XLIVI�MW�RS�QMW�QEXGL�FIX[IIR�½RERGMRK�ERH�I\TIGXIH�MRGSQI�GYVVIRG]�on all new developments.

Going Concern%JXIV�QEOMRK�MRUYMVMIW��XLI�HMVIGXSVW�EVI�GSR½HIRX�XLEX�XLI�+VSYT�LEW�EHIUYEXI�VIWSYVGIW�XS�GSRXMRYI�MR�STIVEXMSREP�I\MWXIRGI�JSV�XLI�JSVIWIIEFPI�JYXYVI��-R�TEVXMGYPEV��MR�QEOMRK�WYGL�IRUYMVMIW��XLI�FSEVH�LEW�LEH�VIKEVH�XS�MXW�GYVVIRX�½RERGMRK�EVVERKIQIRXW�ERH�MXW�TPERRIH�EGXMZMXMIW�JSV�XLI�RI\X����QSRXLW��*SV�XLMW�VIEWSR��XLI]�GSRXMRYI�XS�EHSTX�XLI�KSMRK�GSRGIVR�FEWMW�MR�TVITEVMRK�XLI�½RERGMEP�WXEXIQIRXW�

Auditor-R�EGGSVHERGI�[MXL�VIPIZERX�WIGXMSR�SJ�XLI�'SQTERMIW�%GX��XLI�EYHMXSV��(IPSMXXI��8SYGLI��[MPP�GSRXMRYI�MR�SJ½GI�

Subsidiaries and Equity Accounted Investees-RJSVQEXMSR�SR�XLI�+VSYT´W�WMKRM½GERX�WYFWMHMEVMIW�ERH�IUYMX]�EGGSYRXIH�MRZIWXIIW�MW�WIX�SYX�MR�2SXI���XS�XLI�½RERGMEP�WXEXIQIRXW�

Responsibility Statement�;I�GSR½VQ�XS�XLI�FIWX�SJ�SYV�ORS[PIHKI��E �XLI�½RERGMEP�WXEXIQIRXW��TVITEVIH�MR�EGGSVHERGI�[MXL�XLI�-RXIVREXMSREP�*MRERGMEP�6ITSVXMRK�7XERHEVHW��KMZI�E�XVYI�ERH�JEMV�ZMI[�SJ�XLI�EWWIXW��PMEFMPMXMIW��½RERGMEP�TSWMXMSR�ERH�TVS½X�SV�PSWW�SJ�XLI�+VSYT�ERH�XLI�YRHIVXEOMRKW�MRGPYHIH�MR�XLI�GSRWSPMHEXMSR�XEOIR�EW�E�[LSPI��and�F �XLI�'LEMVQER´W�WXEXIQIRX��XLI�3TIVEXMRK�ERH�*MRERGMEP�VIZMI[��XLI�/I]�VMWOW�ERH�YRGIVXEMRXMIW�ERH�XLI�(MVIGXSVW �VITSVX�MRGPYHI�JEMV�VIZMI[�SJ�XLI�HIZIPSTQIRX�ERH�TIVJSVQERGI�SJ�XLI�FYWMRIWW�ERH�XLI�TSWMXMSR�SJ�XLI�'SQTER]�ERH�XLI�YRHIVXEOMRKW�MRGPYHIH�MR�XLI�GSRWSPMHEXMSR�XEOIR�EW�E�[LSPI��XSKIXLIV�[MXL�E�HIWGVMTXMSR�SJ�XLI�TVMRGMTEP�VMWOW�ERH�YRGIVXEMRXMIW�XLEX�XLI]�JEGI�

Annual General Meeting2SXMGI�SJ�XLI������%RRYEP�+IRIVEP�1IIXMRK�MW�FIMRK�WIRX�EPSRK�[MXL�XLMW�%RRYEP�6ITSVX���%�*SVQ�SJ�4VS\]�JSV�YWI�EX�XLI�%+1�MW�FIMRK�sent along with this Annual Report.

3R�FILEPJ�SJ�XLI�FSEVH

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The Board of Directors

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Operation of the Board

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Attendance at scheduled board and relevant committee meetings during the year ended 31December 2016:2S��SJ�QIIXMRKW�IPMKMFPI�XS

2S��SJ�QIIXMRKW�IPMKMFPI�XS�EXXIRH

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G. R. Giachetti 4 4 P24,500.00G. Giachetti 4 1 P13,000.00/��%��.IJJIVMW 4 2 P16,000.00L. Magang 4 4 P22,000.00K. C. Maphage 4 4 P22,000.00.��4EVM 4 4 P22,000.00A. Bradley 2 2 P 6,000.00

Terms of Appointment 2SR�I\IGYXMZI�HMVIGXSVW�LEZI�FIIR�MRZMXIH�XS�NSMR�XLI�FSEVH�JSV�E�XLVII�]IEV�TIVMSH��WYFNIGX�XS�VI�IPIGXMSR�F]�YRMX�LSPHIVW�EW�TVSZMHIH�JSV�MR�XLI�'SQTER]´W�'SRWXMXYXMSR�

8LI�&SEVH�HSIW�RSX�FIPMIZI�XLEX�XLI�RYQFIV�SJ�]IEVW�XLEX�E�TIVWSR�WIVZIW�EW�E�(MVIGXSV�WLSYPH�FI�PMQMXIH��(MVIGXSVW�XLEX�LEZI�WIVZIH�JSV�ER�I\XIRHIH�TIVMSH�EVI�EFPI�XS�TVSZMHI�ZEPYEFPI�ORS[PIHKI��ERH�I\TIVMIRGI�RIGIWWEV]�XS�PIEH�XLI�'SQTER]�ERH�FI�VI�IPIGXIH�

8LI�ETTSMRXQIRX�ERH�VIQSZEP�SJ�XLI�GSQTER]�WIGVIXEV]�MW�E�QEXXIV�JSV�XLI�FSEVH���%PP�HMVIGXSVW�LEZI�EGGIWW�XS�XLI�EHZMGI�ERH�WIVZMGIW�SJ�XLI�GSQTER]�WIGVIXEV]�

Independence of Directors

%PP�XLI�HMVIGXSVW�FVMRK�MRHITIRHIRX�NYHKIQIRX�XS�FIEV�MR�XLI�GSYVWI�SJ�TIVJSVQERGI�SJ�XLIMV�HYXMIW�

-R�TEVXMGYPEV��XLI�&SEVH�VIZMI[IH�XLI�TSWMXMSR�SJ�+��6��+MEGLIXXM�EW�)\IGYXMZI�'LEMVQER�ERH�HIXIVQMRIH�XLEX��HIWTMXI�LMW�I\IGYXMZI�VSPI��MX�MW�GSR½HIRX�XLEX�XLI�IJJIGXMZI�WITEVEXMSR�SJ�HYXMIW�I\MWXW�[MXL�XLI�1EREKIQIRX�8IEQ��8LI�&SEVH�LEW�ETTSMRXIH�1V��0��1EKERK�EW�XLI�Lead Independent Non-executive Director, to assist the Executive Chairman in this regard. The Chairman executed his powers in an MRHITIRHIRX�QERRIV�XLVSYKLSYX�XLI�½RERGMEP�]IEV��HMWGLEVKIW�LMW�HYXMIW�MR�E�GSRWMWXIRXP]�MRHITIRHIRX�QERRIV�ERH�GSRWXVYGXMZIP]�ERH�appropriately challenges the executive management team and the board.

Board Committees8LI�&SEVH�LEW�IWXEFPMWLIH�E�JSVQEP�WYF�GSQQMXXII�

Audit and Risk Committee8LI�TYVTSWI�SJ�XLI�%YHMX�ERH�6MWO�GSQQMXXII�MW�XS�SZIVWII�XLI�½RERGMEP�VITSVXMRK�TVSGIWWIW��EWWYVERGI�ERH�½RERGI�JYRGXMSRW�ERH�I\XIVREP�EYHMX�TVSGIWW�SJ�6('4���8LI�%YHMX�ERH�6MWO�GSQQMXXII��MW�GSQTSWIH�SJ�XLVII�QIQFIVW��XLI�'LEMVQER�.�,MRGLPMJJI��[LS�MW�RSX�E�HMVIGXSV�SJ�XLI�'SQTER]�ERH�MW�ER�MRHITIRHIRX�EHZMWSV��,I�MW�EWWMWXIH�F]�XLVII�HMVIGXSVW��SRI�I\IGYXMZI�ERH�X[S�RSR�I\IGYXMZI�MRHITIRHIRX�QIQFIVW�SJ�XLI�&SEVH��8LI�GSQQMXXII�QIIXW�XLVII�XMQIW�E�]IEV�ERH�VITSVXW�EVI�MWWYIH�XS�XLI�&SEVH�

Page 24: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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Attendance at scheduled Audit and Risk committee meeting during the year ended 31 December 2016:

Attended Fees paid in 2016

.��,MRGLPMJJI 2 P20,000.00L. Magang 3 P9,000.00K. C. Maphage 2 P6,000.00.��4EVM 3 -

Remuneration/Nominations Committee8LI�FSEVH�TPERW�JSV�MXW�S[R�WYGGIWWMSR��-R�ZMI[�SJ�XLI�GYVVIRX�WM^I�SJ�XLI�'SQTER]��ERH�XLI�JEGX�XLEX�RS�SRI�MW�IQTPS]IH�F]�XLI�Company, the board has not established these committees.

Directorships, and where appropriate, senior management appointments are considered and recommended by the board.

Auditor8LI�EYHMXSV�MW�TIVQMXXIH�XS�TVSZMHI�RSR�EYHMX�WIVZMGIW�XLEX�EVI�RSX�MR�GSR¾MGX�[MXL�EYHMXSV�MRHITIRHIRGI�[LIVI�XLI]�EVI�GSRWMHIVIH�F]�XLI�FSEVH�XS�FI�XLI�QSWX�ETTVSTVMEXI�XS�TVSZMHI�XLI�WIVZMGIW�MR�XLI�FIWX�MRXIVIWXW�SJ�XLI�'SQTER]�

8LI�I\XIVREP�EYHMXSVW�LEZI�JYPP�ERH�YRVIWXVMGXIH�EGGIWW�XS�EPP�MRJSVQEXMSR�SJ�XLI�'SQTER]�

Internal Controls8LI�FSEVH�LEW�SZIVEPP�VIWTSRWMFMPMX]�JSV�XLI�+VSYT´W�W]WXIQ�SJ�MRXIVREP�GSRXVSP�ERH�JSV�QSRMXSVMRK�MXW�IJJIGXMZIRIWW��8LI�W]WXIQ�SJ�internal control applied by the Company is designed to allow reasonable but not absolute assurance against material misstatement or loss.

3R�E�VIKYPEV�FEWMW��XLI�FSEVH�VIGIMZIW�VITSVXW�SR�XLI�OI]�-WWYIW�EJJIGXMRK�XLI�FYWMRIWW�SJ�XLI�'SQTER]�

8LI�'SQTER]´W�%RRYEP�+IRIVEP�1IIXMRK�EJJSVHW�MRHMZMHYEP�YRMX�LSPHIVW�XLI�STTSVXYRMX]�XS�UYIWXMSR�XLI�GLEMVQER�ERH�QIQFIVW�SJ�XLI�FSEVH��2SXMGI�SJ�XLI�%RRYEP�+IRIVEP�1IIXMRK�MW�WIRX�XS�YRMX�LSPHIVW�EX�PIEWX����GEPIRHEV�HE]W�FIJSVI�XLI�QIIXMRK��%X�XLI�QIIXMRK��EJXIV�IEGL�VIWSPYXMSR�LEW�FIIR�HIEPX�[MXL��HIXEMPW�EVI�KMZIR�SJ�XLI�RYQFIV�SJ�TVS\MIW�PSHKIH��XSKIXLIV�[MXL�HIXEMPW�SJ�ZSXIW�GEWX�JSV�and against each resolution.

*IIW�JSV�RSR�I\IGYXMZI�HMVIGXSVW�EVI�HIXIVQMRIH�F]�XLI�FSEVH�SR�ER�ERRYEP�FEWMW�

Service contracts and letters of appointmentThe Company has a service contract with Property and Asset Management Limited (PAM).

+��6��+MEGLIXXM��+��+MEGLIXXM��0��1EKERK�ERH�.��4EVM�EVI�HMVIGXSVW�SJ�4%1��[LMGL�MW�XLI�GSQTER]�TVSZMHMRK�TVSTIVX]�QEREKIQIRX��EGGSYRXMRK�ERH�WIGVIXEVMEP�WIVZMGIW�XS�6('4��8LI�ETTSMRXQIRX�SJ�4%1�MW�VIZMI[IH�F]�XLI�&SEVH�SR�E�VIKYPEV�FEWMW�ERH�FSXL�GSQTIXMXMZIRIWW�ERH�UYEPMX]�SJ�XLI�WIVZMGIW�EVI�STIRP]�HMWGYWWIH�

3RI�SJ�XLI�HMVIGXSVW��+��+MEGLIXXM�LEW�ER�MRHMVIGX�MRXIVIWX�MR�XLI�+VSYT´W�MRZIWXQIRX�MR�E�NSMRX�ZIRXYVI�GSQTER]��,17��7%�

+��6��+MEGLIXXM�ERH�+��+MEGLIXXM�EVI�HMVIGXSVW�SJ�-''��[LMGL�MW�EQSRK�XLI�GMZMP�IRKMRIIVMRK�GSQTERMIW�TVSZMHMRK�GSRWXVYGXMSR�WIVZMGIW�XS�XLI�+VSYT��8LI�ETTSMRXQIRX�SJ�-''��JSV�ER]�GSRWXVYGXMSR�GSRXVEGXW��MW�VIZMI[IH�F]�XLI�&SEVH�SR�E�GEWI�F]�GEWI�FEWMW�ERH�KIRIVEPP]�EJXIV�VIGSQQIRHEXMSR�JVSQ�ER�MRHITIRHIRXP]�ETTSMRXIH�GSRWYPXMRK�XIEQ�QEREKMRK�XLI�IRXMVI�GSRXVEGXYEP�TVSGIWW��[LS�EVI�MR�GSRXVSP�SJ�E�RIKSXMEXMSR��SV�E�GSQTPIXIP]�XVERWTEVIRX�XIRHIVMRK�TVSGIWW�

+SZIVRERGI�7XEXIQIRX�Cont.

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

(MVIGXSVW´�6IWTSRWMFMPMX]�7XEXIQIRX�ERH�%TTVSZEP�SJ�*MRERGMEP�7XEXIQIRXW31 December 2016

Directors’ responsibility statement8LI�(MVIGXSVW�EVI�VIWTSRWMFPI�JSV�XLI�TVITEVEXMSR�ERH�JEMV�TVIWIRXEXMSR�SJ�XLI�½RERGMEP�WXEXIQIRXW�SJ�6('�4VSTIVXMIW�0MQMXIH��[LMGL�GSQTVMWI�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�EW�EX����(IGIQFIV�������ERH�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI��XLI�GSRWSPMHEXIH�ERH�WITEVEXI�WXEXIQIRXW�SJ�GLERKIW�MR�IUYMX]�ERH�GSRWSPMHEXIH�ERH�WITEVEXI�WXEXIQIRXW�SJ�GEWL�¾S[W�JSV�XLI�]IEV�XLIR�IRHIH��ERH�E�WYQQEV]�SJ�WMKRM½GERX�EGGSYRXMRK�TSPMGMIW�ERH�SXLIV�I\TPEREXSV]�RSXIW��MR�EGGSVHERGI�[MXL�-RXIVREXMSREP�*MRERGMEP�6ITSVXMRK�7XERHEVHW��±-*67² � 8LI�HMVIGXSVW� EVI� VIUYMVIH�F]� XLI�'SQTERMIW�%GX�SJ�&SXW[ERE� �'SQTERMIW�%GX�� ���� � XS�QEMRXEMR� EHIUYEXI� EGGSYRXMRK� VIGSVHW�ERH�EVI�VIWTSRWMFPI�JSV�XLI�GSRXIRX�ERH�MRXIKVMX]�SJ�XLI�ERRYEP�½RERGMEP�WXEXIQIRXW�ERH�VIPEXIH�½RERGMEP�MRJSVQEXMSR�MRGPYHIH�MR�XLMW�VITSVX��-X�MW�XLIMV�VIWTSRWMFMPMX]�XS�IRWYVI�XLEX�XLI�½RERGMEP�WXEXIQIRXW�JEMVP]�TVIWIRX�XLI�WXEXI�SJ�EJJEMVW�SJ�XLI�GSQTER]�ERH�KVSYT�EW�EX�XLI�IRH�SJ�XLI�½RERGMEP�]IEV�ERH�XLI�VIWYPXW�SJ�XLIMV�STIVEXMSRW�ERH�GEWL�¾S[W�JSV�XLI�]IEV�XLIR�IRHIH��MR�GSRJSVQMX]�[MXL�-*67��8LI�I\XIVREP�EYHMXSVW�EVI�IRKEKIH�XS�I\TVIWW�ER�MRHITIRHIRX�STMRMSR�SR�XLI�+VSYT�GSRWSPMHEXIH�½RERGMEP�WXEXIQIRXW�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW� The directors’ responsibility includes: designing, implementing and maintaining internal control as the directors determine is necessary XS�IREFPI�XLI�TVITEVEXMSR�SJ�½RERGMEP�WXEXIQIRXW�XLEX�EVI�JVII�JVSQ�QEXIVMEP�QMWWXEXIQIRX��[LIXLIV�HYI�XS�JVEYH�SV�IVVSV��WIPIGXMRK�ERH�ETTP]MRK�ETTVSTVMEXI�EGGSYRXMRK�TSPMGMIW��ERH�QEOMRK�EGGSYRXMRK�IWXMQEXIW�XLEX�EVI�VIEWSREFPI�MR�XLI�GMVGYQWXERGIW� 8LI�½RERGMEP�WXEXIQIRXW�EVI�TVITEVIH�MR�EGGSVHERGI�[MXL�-*67�ERH�EVI�FEWIH�YTSR�ETTVSTVMEXI�EGGSYRXMRK�TSPMGMIW�GSRWMWXIRXP]�ETTPMIH�ERH�WYTTSVXIH�F]�VIEWSREFPI�ERH�TVYHIRX�NYHKIQIRXW�ERH�IWXMQEXIW��8LI�HMVIGXSVW �VIWTSRWMFMPMX]�EPWS�MRGPYHIW�QEMRXEMRMRK�EHIUYEXI�EGGSYRXMRK�VIGSVHW�ERH�ER�IJJIGXMZI�W]WXIQ�SJ�VMWO�QEREKIQIRX�EW�[IPP�EW�XLI�TVITEVEXMSR�SJ�XLI�WYTTPIQIRXEV]�WGLIHYPIW�MRGPYHIH�MR�XLIWI�½RERGMEP�WXEXIQIRXW� 8LI�HMVIGXSVW�EGORS[PIHKI�XLEX�XLI]�EVI�YPXMQEXIP]�VIWTSRWMFPI�JSV�XLI�W]WXIQ�SJ�MRXIVREP�½RERGMEP�GSRXVSP�IWXEFPMWLIH�F]�XLI�KVSYT�ERH�place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the FSEVH�WIXW�WXERHEVHW�JSV�MRXIVREP�GSRXVSP�EMQIH�EX�VIHYGMRK�XLI�VMWO�SJ�IVVSV�SV�PSWW�MR�E�GSWX�IJJIGXMZI�QERRIV��8LI�WXERHEVHW�MRGPYHI�XLI�TVSTIV�HIPIKEXMSR�SJ�VIWTSRWMFMPMXMIW�[MXLMR�E�GPIEVP]�HI½RIH�JVEQI[SVO��IJJIGXMZI�EGGSYRXMRK�TVSGIHYVIW�ERH�EHIUYEXI�WIKVIKEXMSR�SJ�HYXMIW�XS�IRWYVI�ER�EGGITXEFPI�PIZIP�SJ�VMWO��8LIWI�GSRXVSPW�EVI�QSRMXSVIH�XLVSYKLSYX�XLI�KVSYT�ERH�EPP�IQTPS]IIW�EVI�VIUYMVIH�XS�maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that in all reasonable circumstances is EFSZI�VITVSEGL��8LI�JSGYW�SJ�VMWO�QEREKIQIRX�MR�XLI�KVSYT�MW�SR�MHIRXMJ]MRK��EWWIWWMRK��QEREKMRK�ERH�QSRMXSVMRK�EPP�ORS[R�JSVQW�SJ�VMWO�EGVSWW�XLI�GSQTER]��;LMPI�STIVEXMRK�VMWO�GERRSX�FI�JYPP]�IPMQMREXIH��XLI�KVSYT�IRHIEZSYVW�XS�QMRMQMWI�MX�F]�IRWYVMRK�XLEX�ETTVSTVMEXI�MRJVEWXVYGXYVI��GSRXVSPW��W]WXIQW�ERH�IXLMGEP�FILEZMSYV�EVI�ETTPMIH�ERH�QEREKIH�[MXLMR�TVIHIXIVQMRIH�TVSGIHYVIW�ERH�GSRWXVEMRXW� 8LI�HMVIGXSVW�LEZI�QEHI�ER�EWWIWWQIRX�SJ�XLI�+VSYT�ERH�'SQTER]´W�EFMPMX]�XS�GSRXMRYI�EW�E�KSMRK�GSRGIVR�ERH�XLIVI�MW�RS�VIEWSR�XS�FIPMIZI�XLI�FYWMRIWW�[MPP�RSX�FI�E�KSMRK�GSRGIVR�MR�XLI�]IEV�ELIEH�FEWIH�SR�JSVIGEWXW�EZEMPEFPI�ERH�GEWL�VIWSYVGIW��8LI�HMVIGXSVW�EVI�SJ�XLI�STMRMSR��FEWIH�SR�XLI�MRJSVQEXMSR�ERH�I\TPEREXMSRW�KMZIR�F]�QEREKIQIRX��XLEX�XLI�W]WXIQ�SJ�MRXIVREP�GSRXVSP�TVSZMHIW�VIEWSREFPI�EWWYVERGI�XLEX�XLI�½RERGMEP�VIGSVHW�QE]�FI�VIPMIH�SR�JSV�XLI�TVITEVEXMSR�SJ�XLI�½RERGMEP�WXEXIQIRXW��,S[IZIV��ER]�W]WXIQ�SJ�MRXIVREP�½RERGMEP�GSRXVSP�GER�TVSZMHI�SRP]�VIEWSREFPI��ERH�RSX�EFWSPYXI��EWWYVERGI�EKEMRWX�QEXIVMEP�QMWWXEXIQIRX�SV�PSWW� 8LI�I\XIVREP�EYHMXSVW�EVI�VIWTSRWMFPI�JSV�MRHITIRHIRXP]�VIZMI[MRK�ERH�VITSVXMRK�SR�XLI�½RERGMEP�WXEXIQIRXW��[LMGL�[IVI�I\EQMRIH�F]�XLI�I\XIVREP�EYHMXSVW�ERH�XLIMV�YRQSHM½IH�VITSVX�MW�TVIWIRXIH�SR�TEKI������� $SSURYDO�RI�WKH�¼QDQFLDO�VWDWHPHQWV8LI�½RERGMEP�WXEXIQIRXW�WIX�SYX�SR�TEKIW����XS����[LMGL�LEZI�FIIR�TVITEVIH�SR�XLI�KSMRK�GSRGIVR�FEWMW��[IVI�ETTVSZIH�F]�XLI�FSEVH�SR����1EVGL������ERH�[IVI�WMKRIH�SR�MXW�FILEPJ�F]�

__________________ Chairman Director

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Report on the Audit of the Consolidated and Separate Financial Statements

Opinion

;I�LEZI�EYHMXIH�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�SJ�6('�4VSTIVXMIW�0MQMXIH�ERH�MXW�WYFWMHMEVMIW��±XLI�+VSYT² ��WIX�SYX�SR�TEKIW����XS�����[LMGL�GSQTVMWI�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�EW�EX����(IGIQFIV�������ERH�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI��XLI�WXEXIQIRXW�SJ�GLERKIW�MR�IUYMX]�ERH�WXEXIQIRXW�SJ�GEWL�¾S[W�JSV�XLI�]IEV�XLIR�IRHIH��MRGPYHMRK�E�WYQQEV]�SJ�WMKRM½GERX�EGGSYRXMRK�TSPMGMIW��

-R�SYV�STMRMSR��XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�KMZI�E�XVYI�ERH�JEMV�ZMI[�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�TSWMXMSR�SJ�6('�4VSTIVXMIW�0MQMXIH�EW�EX����(IGIQFIV�������ERH�MXW�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�TIVJSVQERGI�ERH�GSRWSPMHEXIH�ERH�WITEVEXI�GEWL�¾S[W�JSV�XLI�]IEV�XLIR�IRHIH�MR�EGGSVHERGI�[MXL�-RXIVREXMSREP�*MRERGMEP�6ITSVXMRK�7XERHEVHW��±-*67² �

Basis for Opinion

;I�GSRHYGXIH�SYV�EYHMX�MR�EGGSVHERGI�[MXL�-RXIVREXMSREP�7XERHEVHW�SR�%YHMXMRK��±-7%W² ��3YV�VIWTSRWMFMPMXMIW�YRHIV�XLSWI�WXERHEVHW�EVI�JYVXLIV�HIWGVMFIH�MR�XLI�%YHMXSV´W�6IWTSRWMFMPMXMIW�JSV�XLI�%YHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�WIGXMSR�SJ�SYV�VITSVX��;I�EVI�MRHITIRHIRX�SJ�XLI�+VSYT�MR�EGGSVHERGI�[MXL�XLI�-RXIVREXMSREP�)XLMGW�7XERHEVHW�&SEVH�JSV�%GGSYRXERXW�'SHI�SJ�)XLMGW�JSV�4VSJIWWMSREP�%GGSYRXERXW��4EVX�%�ERH�& ��XSKIXLIV�[MXL�SXLIV�IXLMGEP�VIUYMVIQIRXW�XLEX�EVI�VIPIZERX�XS�SYV�EYHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�MR�&SXW[ERE��ERH�[I�LEZI�JYP½PPIH�SYV�SXLIV�IXLMGEP�VIWTSRWMFMPMXMIW�MR�EGGSVHERGI�[MXL�XLIWI�VIUYMVIQIRXW��;I�FIPMIZI�XLEX�XLI�EYHMX�IZMHIRGI�[I�LEZI�SFXEMRIH�MW�WYJ½GMIRX�ERH�ETTVSTVMEXI�XS�TVSZMHI�E�FEWMW�JSV�SYV�STMRMSR�

Key Audit Matters

/I]�EYHMX�QEXXIVW�EVI�XLSWI�QEXXIVW�XLEX��MR�SYV�TVSJIWWMSREP�NYHKIQIRX��[IVI�SJ�QSWX�WMKRM½GERGI�MR�SYV�EYHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�SJ�XLI�GYVVIRX�TIVMSH���8LIWI�QEXXIVW�[IVI�EHHVIWWIH�MR�XLI�GSRXI\X�SJ�SYV�EYHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�EW�E�[LSPI��ERH�MR�JSVQMRK�SYV�STMRMSR�XLIVISR��ERH�[I�do not provide a separate opinion on these matters.

-RHITIRHIRX�%YHMXSV W�6ITSVX�XS�XLI�1IQFIVW�SJ�6('�4VSTIVXMIW�0MQMXIH

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Key Audit Matter How the matter was addressed in the

audit

Valuation of Investment Properties

8LI�GEVV]MRK�ZEPYI�SJ�MRZIWXQIRX�properties amounted to P1.2 billion �'SQTER]��4����QMPPMSR �ERH�XLI�JEMV�ZEPYI�EHNYWXQIRX�VIGSVHIH�MR�RIX�TVS½X�JSV�XLI�]IEV�MR�VIWTIGX�SJ�MRZIWXQIRX�TVSTIVXMIW�was P96.1 million (Company: P61.9 million).

7MKRM½GERX�NYHKIQIRX�MW�VIUYMVIH�F]�XLI�(MVIGXSVW�MR�HIXIVQMRMRK�XLI�JEMV�ZEPYI�SJ�MRZIWXQIRX�TVSTIVX]�ERH�JSV�XLI�TYVTSWIW�SJ�SYV�EYHMX��[I�MHIRXM½IH�XLI�ZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVXMIW�EW�VITVIWIRXMRK�E�OI]�EYHMX�QEXXIV�HYI�XS�XLI�WMKRM½GERGI�SJ�XLI�FEPERGI�XS�XLI�½RERGMEP�WXEXIQIRXW�EW�E�[LSPI��GSQFMRIH�[MXL�XLI�WMKRM½GERX�assumptions associated with determining XLI�JEMV�ZEPYI�

The Group and Company’s investment properties comprise various categories SJ�TVSTIVXMIW��XLI�QSWX�WMKRM½GERX�FIMRK�commercial properties. All the properties SJ�XLI�+VSYT�EVI�VIZEPYIH�SR�E�XLVII�]IEV�G]GPI�FEWMW�F]�MRHITIRHIRX�TVSJIWWMSREP�valuers. In between the three year cycles, the properties are valued based on internal valuations by the Directors. In the GYVVIRX�]IEV����SJ�XLI�TVSTIVXMIW��F]�property value) were valued internally by the Directors, and the remaining 21% were valued by an independent valuer.

8LI�MRTYXW�[MXL�XLI�QSWX�WMKRM½GERX�MQTEGX�on these valuations are disclosed in note ����ERH�MRGPYHI�JYXYVI�RIX�MRGSQI�ERH�capitalisation rates.

;I�EWWIWWIH�XLI�GSQTIXIRGI��GETEFMPMXMIW�ERH�SFNIGXMZMX]�SJ�XLI�(MVIGXSVW �MRHITIRHIRX�ZEPYIVW��ERH�ZIVM½IH�XLIMV�UYEPM½GEXMSRW��-R�EHHMXMSR��[I�HMWGYWWIH�ERH�VIZMI[IH�XLIMV�XIVQW�SJ�IRKEKIQIRX�XS�HIXIVQMRI�XLEX�XLIVI�[IVI�RS�QEXXIVW�XLEX�EJJIGXIH�XLIMV�MRHITIRHIRGI�ERH�SFNIGXMZMX]�SV�MQTSWIH�WGSTI�PMQMXEXMSRW�YTSR�XLIQ��;I�GSR½VQIH�that the approaches they used are consistent with IFRS and industry norms.

;I�EWWIWWIH�XLI�GSQTIXIRGI�SJ�XLI�MRXIVREP�ZEPYIVW�F]�VIZMI[MRK�XLIMV�UYEPM½GEXMSRW�ERH�TEWX�I\TIVMIRGI�ERH�[I�[IVI�WEXMW½IH�XLEX�XLI]�TSWWIWWIH�XLI�VIUYMWMXI�UYEPM½GEXMSRW�JSV�XLIQ�XS�GEVV]�SYX�XLI�ZEPYEXMSRW��We did not come across any evidence which made us to doubt the SFNIGXMZMX]�SJ�XLI�MRXIVREP�ZEPYIVW��

;I�TIVJSVQIH�E�WIRWMXMZMX]�EREP]WMW�SR�XLI�WMKRM½GERX�NYHKIQIRXW�XS�IZEPYEXI�XLI�I\XIRX�SJ�MQTEGX�SR�XLI�JEMV�ZEPYIW�ERH�EWWIWWIH�XLI�ETTVSTVMEXIRIWW�SJ�XLI�+VSYT´W�HMWGPSWYVIW�VIPEXMRK�XS�XLIWI�WIRWMXMZMXMIW��;I�JSYRH�XLI�HMWGPSWYVIW�XS�FI�EHIUYEXI�

*YVXLIVQSVI��[I�XIWXIH�E�WIPIGXMSR�SJ�HEXE�MRTYXW�YRHIVTMRRMRK�XLI�investment property valuation, including rental income, tenancy schedules, GETMXEP�I\TIRHMXYVI�HIXEMPW��EGUYMWMXMSR�GSWX�WGLIHYPIW�ERH�¾SSV�WTEGI�details, against appropriate supporting documentation, to assess the EGGYVEG]��VIPMEFMPMX]�ERH�GSQTPIXIRIWW�XLIVISJ�

3YV�EYHMX�TVSGIHYVIW�JSGYWIH�SR�XIWXMRK�XLI�IWXMQEXIH�PIEWI�MRGSQI�and payments through comparison to agreements, business plans and LMWXSVMGEP�TIVJSVQERGI��[LIVI�EZEMPEFPI�

;I�EPWS�IZEPYEXIH�XLI�ETTVSTVMEXIRIWW�SJ�XLI�ZEPYEXMSR�QIXLSH�YWIH�F]�comparison to valuation methods used by other property companies.

;I�JSYRH�XLI�QSHIP�YWIH��&VSPP�:EPYEXMSR�1IXLSH��-RGSQI�%TTVSEGL �to be appropriate and the capitalisation rates were comparable to market rates.

;I�EWWIWWIH�XLI�ZEPYIW�SJ�XLI�TVSTIVXMIW�TYVGLEWIH�MR�2SZIQFIV������ERH�HIIQIH�XLI�TYVGLEWI�TVMGI�XS�WXMPP�ETTVS\MQEXI�XLI�JEMV�ZEPYI��

;I�EWWIWWIH�XLI�EHIUYEG]�SJ�XLI�HMWGPSWYVIW�MR�XLI�½RERGMEP�WXEXIQIRXW�VIPEXMRK�XS�MRZIWXQIRX�TVSTIVXMIW�ERH�[I�JSYRH�XLI�HMWGPSWYVIW�MR�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�XS�FI�ETTVSTVMEXI�ERH�comprehensive.

-RHITIRHIRX�%YHMXSV W�6ITSVX�XS�XLI�1IQFIVW�SJ�6('�4VSTIVXMIW�0MQMXIH�Cont.

Page 28: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

��

Other Information

8LI�HMVIGXSVW�EVI�VIWTSRWMFPI�JSV�XLI�SXLIV�MRJSVQEXMSR��8LI�SXLIV�MRJSVQEXMSR�GSQTVMWIW�XLI�(MVIGXSVW �6ITSVX��XLI�)\IGYXMZI�'LEMVQER´W�6ITSVX��XLI�'LMIJ�)\IGYXMZI´W�6ITSVX��ERH�XLI�'SVTSVEXI�+SZIVRERGI�6ITSVX��[LMGL�MW�I\TIGXIH�XS�FI�QEHI�EZEMPEFPI�XS�YW�[MXL�XLI�%RRYEP�6ITSVX�ERH�EJXIV�XLI�HEXI�MR�XLMW�VITSVX����8LI�SXLIV�MRJSVQEXMSR�HSIW�RSX�MRGPYHI�XLI�GSRWSPMHEXIH�½RERGMEP�WXEXIQIRXW�ERH�SYV�EYHMXSV´W�VITSVX�XLIVISR�

3YV�STMRMSR�SR�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�HSIW�RSX�GSZIV�XLI�SXLIV�MRJSVQEXMSR�ERH�[I�HS�RSX�I\TVIWW�ER]�JSVQ�SJ�EWWYVERGI�GSRGPYWMSR�XLIVISR��

-R�GSRRIGXMSR�[MXL�SYV�EYHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW��SYV�VIWTSRWMFMPMX]�MW�XS�VIEH�XLI�SXLIV�MRJSVQEXMSR�ERH��MR�HSMRK�WS��GSRWMHIV�[LIXLIV�XLI�SXLIV�MRJSVQEXMSR�MW�QEXIVMEPP]�MRGSRWMWXIRX�[MXL�XLI�½RERGMEP�statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

-J��FEWIH�SR�XLI�[SVO�[I�LEZI�TIVJSVQIH�SR�XLI�SXLIV�MRJSVQEXMSR�XLEX�[I�SFXEMRIH�TVMSV�XS�XLI�HEXI�SJ�XLMW�EYHMXSV´W�VITSVX��[I�GSRGPYHI�XLEX�XLIVI�MW�E�QEXIVMEP�QMWWXEXIQIRX�SJ�XLMW�SXLIV�MRJSVQEXMSR��[I�EVI�VIUYMVIH�XS�VITSVX�XLEX�JEGX���We have nothing to report in this regard.

Responsibilities of the Directors for the Consolidated and Separate Financial Statements

8LI�(MVIGXSVW�EVI�VIWTSRWMFPI�JSV�XLI�TVITEVEXMSR�ERH�JEMV�TVIWIRXEXMSR�SJ�XLIWI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�MR�EGGSVHERGI�[MXL�-RXIVREXMSREP�*MRERGMEP�6ITSVXMRK�7XERHEVHW�ERH�JSV�WYGL�MRXIVREP�GSRXVSP�EW�XLI�(MVIGXSVW�HIXIVQMRI�MW�RIGIWWEV]�XS�IREFPI�XLI�TVITEVEXMSR�SJ�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�XLEX�EVI�JVII�JVSQ�QEXIVMEP�QMWWXEXIQIRX��[LIXLIV�HYI�XS�JVEYH�SV�IVVSV�

-R�TVITEVMRK�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW��XLI�(MVIGXSVW�EVI�VIWTSRWMFPI�JSV�EWWIWWMRK�XLI�+VSYT´W�and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using XLI�KSMRK�GSRGIVR�FEWMW�SJ�EGGSYRXMRK�YRPIWW�XLI�(MVIGXSVW�IMXLIV�MRXIRH�XS�PMUYMHEXI�XLI�+VSYT�ERH�SV�'SQTER]�SV�XS�cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements

3YV�SFNIGXMZIW�EVI�XS�SFXEMR�VIEWSREFPI�EWWYVERGI�EFSYX�[LIXLIV�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�EW�E�[LSPI�EVI�JVII�JVSQ�QEXIVMEP�QMWWXEXIQIRX��[LIXLIV�HYI�XS�JVEYH�SV�IVVSV��ERH�XS�MWWYI�ER�EYHMXSV´W�VITSVX�XLEX�MRGPYHIW�SYV�STMRMSR��6IEWSREFPI�EWWYVERGI�MW�E�LMKL�PIZIP�SJ�EWWYVERGI��FYX�MW�RSX�E�KYEVERXII�XLEX�ER�EYHMX�GSRHYGXIH�MR�EGGSVHERGI�[MXL�-7%W�[MPP�EP[E]W�HIXIGX�E�QEXIVMEP�QMWWXEXIQIRX�[LIR�MX�I\MWXW��1MWWXEXIQIRXW�GER�EVMWI�JVSQ�JVEYH�SV�IVVSV�ERH�EVI�GSRWMHIVIH�QEXIVMEP�MJ��MRHMZMHYEPP]�SV�MR�XLI�EKKVIKEXI��XLI]�GSYPH�VIEWSREFP]�FI�I\TIGXIH�XS�MR¾YIRGI�XLI�IGSRSQMG�HIGMWMSRW�SJ�YWIVW�XEOIR�SR�XLI�FEWMW�SJ�XLIWI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�

%W�TEVX�SJ�ER�EYHMX�MR�EGGSVHERGI�[MXL�-7%W��[I�I\IVGMWI�TVSJIWWMSREP�NYHKIQIRX�ERH�QEMRXEMR�TVSJIWWMSREP�WOITXMGMWQ�throughout the audit. We also:�� -HIRXMJ]�ERH�EWWIWW�XLI�VMWOW�SJ�QEXIVMEP�QMWWXEXIQIRX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW��[LIXLIV�

HYI�XS�JVEYH�SV�IVVSV��HIWMKR�ERH�TIVJSVQ�EYHMX�TVSGIHYVIW�VIWTSRWMZI�XS�XLSWI�VMWOW��ERH�SFXEMR�EYHMX�IZMHIRGI�XLEX�MW�WYJ½GMIRX�ERH�ETTVSTVMEXI�XS�TVSZMHI�E�FEWMW�JSV�SYV�STMRMSR��8LI�VMWO�SJ�RSX�HIXIGXMRK�E�QEXIVMEP�QMWWXEXIQIRX�VIWYPXMRK�JVSQ�JVEYH�MW�LMKLIV�XLER�JSV�SRI�VIWYPXMRK�JVSQ�IVVSV��EW�JVEYH�QE]�MRZSPZI�GSPPYWMSR��JSVKIV]��MRXIRXMSREP�SQMWWMSRW��QMWVITVIWIRXEXMSRW��SV�XLI�SZIVVMHI�SJ�MRXIVREP�GSRXVSP��

-RHITIRHIRX�%YHMXSV W�6ITSVX�XS�XLI�1IQFIVW�SJ�6('�4VSTIVXMIW�0MQMXIH�Cont.

Page 29: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

��

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements (Continued)

�� 3FXEMR�ER�YRHIVWXERHMRK�SJ�MRXIVREP�GSRXVSP�VIPIZERX�XS�XLI�EYHMX�MR�SVHIV�XS�HIWMKR�EYHMX�TVSGIHYVIW�XLEX�EVI�ETTVS-TVMEXI�MR�XLI�GMVGYQWXERGIW��FYX�RSX�JSV�XLI�TYVTSWI�SJ�I\TVIWWMRK�ER�STMRMSR�SR�XLI�IJJIGXMZIRIWW�SJ�XLI�+VSYT´W�ERH�Company’s internal control.

�� )ZEPYEXI�XLI�ETTVSTVMEXIRIWW�SJ�EGGSYRXMRK�TSPMGMIW�YWIH�ERH�XLI�VIEWSREFPIRIWW�SJ�EGGSYRXMRK�IWXMQEXIW�ERH�VIPEXIH�disclosures made by the Directors.

�� 'SRGPYHI�SR�XLI�ETTVSTVMEXIRIWW�SJ�XLI�(MVIGXSVW �YWI�SJ�XLI�KSMRK�GSRGIVR�FEWMW�SJ�EGGSYRXMRK�ERH�FEWIH�SR�XLI�EYHMX�IZMHIRGI�SFXEMRIH��[LIXLIV�E�QEXIVMEP�YRGIVXEMRX]�I\MWXW�VIPEXIH�XS�IZIRXW�SV�GSRHMXMSRW�XLEX�QE]�GEWX�WMKRMJ-MGERX�HSYFX�SR�XLI�+VSYT´W�ERH�'SQTER]´W�EFMPMX]�XS�GSRXMRYI�EW�E�KSMRK�GSRGIVR��-J�[I�GSRGPYHI�XLEX�E�QEXIVMEP�uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consoli-HEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�SV��MJ�WYGL�HMWGPSWYVIW�EVI�MREHIUYEXI��XS�QSHMJ]�SYV�STMRMSR��3YV�GSRGPYWMSRW�EVI�FEWIH�SR�XLI�EYHMX�IZMHIRGI�SFXEMRIH�YT�XS�XLI�HEXI�SJ�SYV�EYHMXSV´W�VITSVX��,S[IZIV��JYXYVI�IZIRXW�SV�GSRHM-tions may cause the Group and/or Company to cease to continue as a going concern.

�� )ZEPYEXI�XLI�SZIVEPP�TVIWIRXEXMSR��WXVYGXYVI�ERH�GSRXIRX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW��MRGPYH-MRK�XLI�HMWGPSWYVIW��ERH�[LIXLIV�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�VITVIWIRX�XLI�YRHIVP]MRK�XVERWEG-XMSRW�ERH�IZIRXW�MR�E�QERRIV�XLEX�EGLMIZIW�JEMV�TVIWIRXEXMSR�

�� 3FXEMR�WYJ½GMIRX�ETTVSTVMEXI�EYHMX�IZMHIRGI�VIKEVHMRK�XLI�½RERGMEP�MRJSVQEXMSR�SJ�XLI�IRXMXMIW�SV�FYWMRIWW�EGXMZMXMIW�[MXLMR�XLI�+VSYT�XS�I\TVIWW�ER�STMRMSR�SR�XLI�GSRWSPMHEXIH�½RERGMEP�WXEXIQIRXW��;I�EVI�VIWTSRWMFPI�JSV�XLI�HMVIG-XMSR��WYTIVZMWMSR�ERH�TIVJSVQERGI�SJ�XLI�+VSYT�EYHMX��;I�VIQEMR�WSPIP]�VIWTSRWMFPI�JSV�SYV�EYHMX�STMRMSR�

;I�GSQQYRMGEXI�[MXL�XLI�%YHMX�'SQQMXXII�VIKEVHMRK��EQSRK�SXLIV�QEXXIVW��XLI�TPERRIH�WGSTI�ERH�XMQMRK�SJ�XLI�EYHMX�ERH�WMKRM½GERX�EYHMX�½RHMRKW��MRGPYHMRK�ER]�WMKRM½GERX�HI½GMIRGMIW�MR�MRXIVREP�GSRXVSP�XLEX�[I�MHIRXMJ]�HYVMRK�SYV�EYHMX��

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them any relationships and other matters that may reasonably be XLSYKLX�XS�FIEV�SR�SYV�MRHITIRHIRGI�XLEX�[I�EVI�E[EVI�SJ��ERH�[LIVI�ETTPMGEFPI��VIPEXIH�WEJIKYEVHW��

*VSQ�XLI�QEXXIVW�GSQQYRMGEXIH�[MXL�XLI�%YHMX�'SQQMXXII��[I�HIXIVQMRI�XLSWI�QEXXIVW�XLEX�[IVI�SJ�QSWX�WMKRM½GERGI�MR�XLI�EYHMX�SJ�XLI�GSRWSPMHEXIH�ERH�WITEVEXI�½RERGMEP�WXEXIQIRXW�JSV�XLI�½RERGMEP�]IEV�IRHIH����(IGIQFIV�������ERH�EVI�XLIVIJSVI�XLI�OI]�EYHMX�QEXXIVW��;I�HIWGVMFI�XLIWI�QEXXIVW�MR�SYV�EYHMXSV´W�VITSVX�YRPIWW�PE[�SV�VIKYPEXMSR�TVIGPYHIW�disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be GSQQYRMGEXIH�MR�SYV�VITSVX�FIGEYWI�XLI�EHZIVWI�GSRWIUYIRGIW�SJ�HSMRK�WS�[SYPH�VIEWSREFP]�FI�I\TIGXIH�XS�SYX[IMKL�XLI�YWIVW �MRXIVIWX�FIRI½XW�SJ�WYGL�GSQQYRMGEXMSR��

(IPSMXXI��8SYGLI'IVXM½IH�%YHMXSVWPracticing Member: M Marinelli (19900028)Gaborone

24 March 2017

-RHITIRHIRX�%YHMXSV W�6ITSVX�XS�XLI�1IQFIVW�SJ�6('�4VSTIVXMIW�0MQMXIH�Cont.

Page 30: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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7XEXIQIRXW�SJ�'SQTVILIRWMZI�-RGSQI 31 December 2016

Group Company Notes 2016 2015 2016 2015 P’000 P’000 P’000 P’000 Revenue 90,886 86,993 46,507 42,029 Contractual lease rental revenue 1 88,526 83,291 45,870 42,156 ���7XVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� � �������� �������� ������ ������ Operating expenses (27,834 ) (25,678 ) (15,216 ) (14,754 ) ��0SWW �MRGSQI�EVMWMRK�JVSQ�NSMRX�ZIRXYVI�� � ������ � ����� ������ �����7LEVI�SJ�TVS½X�MR�E�NSMRX�ZIRXYVI�� ����� ������ � ����� ����� ���� Foreign exchange gains relating to amounts �S[MRK�JVSQ�XLI�NSMRX�ZIRXYVI�� ���� ������ ������ ������ ����� �3XLIV�JSVIMKR�I\GLERKI��PSWWIW �KEMRW�� ��� ������ � ���� ���� ��� Other operating income 2,674 1,220 1,340 - �4VS½X�JVSQ�STIVEXMSRW�FIJSVI�JEMV�ZEPYI�EHNYWXQIRXW�� � �������� �������� �������� ��������7YVTPYW�EVMWMRK�SR�VIZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVXMIW�� � �������� �������� �������� �������� Net valuation 92,710 84,320 61,899 40,661 �%HNYWXIH�JSV�WXVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� � ������� � ������� � ����� � ���� �3UR¼W�IURP�RSHUDWLRQV� 2 155,526 143,443 93,914 68,158 Investment income 3 12,175 1,767 16,228 1,985 Finance costs 4 (17,541 ) (18,888 ) (8,582 ) (8,834 ) �3UR¼W�EHIRUH�WD[ 150,160 126,322 101,560 61,309 Income tax expense 5 (25,659 ) (25,965 ) (19,160 ) (12,724 ) 3UR¼W�IRU�WKH�\HDU� 124,501 100,357 82,400 48,585 Other comprehensive income �-XIQW�XLEX�QE]�FI�WYFWIUYIRXP]�GPEWWM½IH�XS�TVS½X�SV�PSWW�� � �� �� �� ��)\GLERKI�HMJJIVIRGIW�SR�XVERWPEXMSR�SJ�JSVIMKR�STIVEXMSRW�� � ����� ����� ��� �����*EMV�ZEPYI�KEMRW�SR�EZEMPEFPI�JSV�WEPI�½RERGMEP�EWWIXW�� � ������� ����� ������� �����3XLIV�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � ������� ����� ������� ���� Total comprehensive income for the year 126,343 100,532 83,545 48,585 �4VS½X�EXXVMFYXEFPI�XS��� � �� �� �� � �3[RIVW�SJ�XLI�GSQTER]�� � ��������� �������� �������� ������� Non-controlling interests 20,001 23,778 - - 124,501 100,357 82,400 48,585 Total comprehensive income attributable to: �3[RIVW�SJ�XLI�GSQTER]�� � ��������� �������� �������� ������� Non-controlling interests 20,001 23,778 - - 126,343 100,532 83,545 48,585 �2YQFIV�SJ�PMROIH�YRMXW�MR�MWWYI�EX�]IEV�IRH�� � ������������� ������������� �� ��%ZIVEKI�RYQFIV�SJ�PMROIH�YRMXW�MR�MWWYI��� � ������������� ������������� �� � Earnings per linked unit (thebe) 31.64 31.19 Earnings per linked unit is calculated based on �XLI�EZIVEKI�RYQFIV�SJ�PMROIH�YRMXW�MR�MWWYI�ERH�TVS½X��� � �� �� �� ��JSV�XLI�]IEV�EXXVMFYXEFPI�XS�XLI�S[RIVW�SJ�XLI�'SQTER]��� � �� �� �� ��EHNYWXIH�F]�XLI�XE\EXMSR�SR�HIFIRXYVI�MRXIVIWX�GVIHMXIH�� � �� �� �� ��XS�WXEXIQIRX�SJ�GLERKIW�MR�IUYMX]�SJ��� � ��������� �������� �� � Distribution per linked unit Distribution per linked unit (thebe) 8.48 7.52 Interest per linked unit (thebe) 7.17 7.02 Dividend per linked unit (thebe) 1.31 0.50 �(MWXVMFYXMSR�TIV�PMROIH�YRMX�MW�GEPGYPEXIH�SR�XLI�RYQFIV�SJ�PMROIH�YRMXW�MR�MWWYI�EX�HEXI�SJ�HMWXVMFYXMSR���� �� �� ��

�3XLIV�MRJSVQEXMSR�� � �� �� �� � Interest to dividend ratio 5:1 12:1 5:1 50:1

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Group Company Notes 2016 2015 2016 2015 P’000 P’000 P’000 P’000 ASSETS 1RQ�FXUUHQW�$VVHWV� Property, plant and equipment 6 10,168 1,146 2,554 6 Investments 7 - - 116,349 116,349 �-RZIWXQIRX�MR�E�NSMRX�ZIRXYVI�� ��� ��������� �������� ����� ���� Investment properties 8 1,169,268 1,075,161 617,707 556,820 �%X�JEMV�ZEPYI�� �� ������������ ����������� ��������� ���������6IRXEP�VIGIMZEFPI���WXVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� �� ��������� � �������� � ������� � ������� Intangible asset 9 1,000 1,000 - - �%ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW�� ��� ��������� ����� �������� ���� Trade and other receivables 10 2,052 8,197 2,052 8,197 �6IRXEP�VIGIMZEFPI���WXVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� �� ��������� ������� ������� ������ 1,234,176 1,121,688 751,518 682,476 - Current Assets Trade and other receivables 10 19,752 17,336 14,143 13,144 �6IRXEP�VIGIMZEFPI���WXVEMKLX�PMRI�EHNYWXQIRX�� �� �������� ������ ����� ���� Current tax assets 1,443 902 1,262 576 Cash and cash equivalents 11 182,339 183,274 180,369 181,524 205,180 201,981 196,159 195,599 �%WWIXW�GPEWWM½IH�EW�,IPH�JSV�WEPI�� ��� ��������� ����� �������� ���� 220,814 201,981 211,793 195,599

Total Assets 1,454,990 1,323,669 963,311 878,075 EQUITY AND LIABILITIES Capital and Reserves Stated capital 12 318,983 318,983 318,983 318,983 Debentures 13 111,215 111,215 111,215 111,215 �%GGYQYPEXIH�TVS½XW�� ��� ���������� ��������� ��������� ��������� Debenture interest and dividend reserve 15 17,857 12,730 17,857 12,730 Investments revaluation reserve 1,276 - 1,145 - Foreign currency translation reserve (1,800 ) (2,366 ) - -

� )UYMX]�EXXVMFYXEFPI�XS�S[RIVW�SJ�XLI�TEVIRX�� � ��������� ��������� ��������� �������� Non-controlling interests 16 177,559 160,706 - - Total equity 1,105,364 1,001,025 796,718 732,029

1RQ�FXUUHQW�/LDELOLWLHV� Long term borrowings 17 224,048 211,621 108,827 100,498 �(IJIVVIH�XE\�PMEFMPMXMIW�� ��� ��������� �������� �������� �������� 310,585 278,335 147,984 125,970 Current Liabilities Trade and other payables 19 16,276 16,738 10,431 12,966 �&ERO�SZIVHVEJX�� ��� ������ ������� ����� �����'YVVIRX�TSVXMSR�SJ�PSRK�XIVQ�FSVVS[MRKW���������� ��� ��������� �������� ������� ������ Current tax liabilities 74 179 - - 39,041 44,309 18,609 20,076 Total Equity and Liabilities 1,454,990 1,323,669 963,311 878,075

7XEXIQIRXW�SJ�*MRERGMEP�4SWMXMSR��31 December 2016

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Debenture Foreign Investment interest and currency Attributable � � �� 6WDWHG��� �� $FFXPXODWHG��� UHYDOXDWLRQ��� GLYLGHQG��� WUDQVODWLRQ��� WR�RZQHUV��� 1RQ�FRQWUROOLQJ��� 7RWDO� � 1RWHV��� FDSLWDO��� 'HEHQWXUHV��� SUR¼WV�� UHVHUYH��� UHVHUYH���� UHVHUYH�� RI�WKH�SDUHQW��� LQWHUHVWV��� (TXLW\� P’000 P’000 P’000 P’000 P’000 P’000 P’000 P’000 P’000 GROUP Balance at 1 January 2015 77,028 71,098 390,153 - 13,308 (2,541 ) 549,046 136,928 685,974 �&SRYW�-WWYI�� � ���������� ��������� ��������� ��������� � ����� ����� ����� ����� ����� �����6MKLXW�-WWYI�� � ���������� ���������� ���������� ������ ����� ����� ����� ���������� ����� �������� 318,983 111,215 340,162 - 13,308 (2,541 ) 781,127 136,928 918,055 �4VS½X�JSV�XLI�]IEV�� � �� ����� ����� �������� ����� ����� ����� ��������� ��������� ����������3XLIV�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � �� ����� ����� ����� ����� ����� ����� ������ ����� �����8SXEP�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � �� ����� ����� �������� ����� ����� ����� ��������� ��������� �������� - - Debenture interest declared and proposed 15 - - (19,678 ) - 19,678 - - - - Taxation attributable to debenture interest 5 - - 4,329 - - - 4,329 - 4,329 Debenture interest paid - - - - (21,468 ) - (21,468 ) - (21,468) Dividends declared and proposed 15 - - (1,635 ) - 1,635 - - - - Dividends paid - - - - (423 ) - (423 ) - (423 ) Balance at 31 December 2015 318,983 111,215 399,757 - 12,730 (2,366 ) 840,319 160,706 1,001,025 - �4VS½X�JSV�XLI�]IEV�� � ��� ����� ������ ��������� ����� ����� ����� ���������� ���������� ����������3XLIV�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � ��� ����� ������ ������ �������� ������ ����� �������� ������ �������8SXEP�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � �� �� ��� ��������� �������� ����� ������ ������������ ��������� �������� - Debenture interest declared and proposed - - (24,888 ) - 24,888 - - - Taxation attributable to debenture interest - - 5,475 - - - 5,475 - 5,475 Debenture interest paid - - - - (22,648 ) - (22,648 ) - (22,648 ) Dividends declared and proposed - - (4,570 ) - 4,570 - - - - Dividends paid - - - - (1,683 ) - (1,683 ) (3,148 ) (4,831 ) Balance at 31 December 2016 318,983 111,215 480,274 1,276 17,857 (1,800 ) 927,805 177,559 1,105,364 COMPANY Balance at 1 January 2015 77,028 71,098 307,491 13,308 - 468,925 - 468,925 - �&SRYW�-WWYI�� � ����������� ��������� �������� �������� � �� ������ ������ ������ ��������� ������6MKLXW�-WWYI�� � ����������� ���������� ����������� ����� �� ������ ������ �������������� ������ ��������� 318,983 111,215 257,500 13,308 - 701,006 - 701,006 �4VS½X�JSV�XLI�]IEV�� � ��� ����� ����� �������� �� ����� ����� ��������� ������ �������Other comprehensive income - - - - - - - - �8SXEP�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � ��� ����� ������ ��������� �� ����� ������ ����������� ����� �������� Debenture interest declared and proposed 15 - - (19,678 ) 19,678 - - - - Taxation attributable to debenture interest 5 - - 4,329 - - 4,329 - 4,329 Debenture interest paid - - - (21,468 ) - (21,468 ) - (21,468 ) Dividends declared and proposed 15 - - (1,635 ) 1,635 - - - - Dividends paid - - - (423 ) - (423 ) - (423 ) Balance at 31 December 2015 318,983 111,215 289,101 12,730 - 732,029 - 732,029 �4VS½X�JSV�XLI�]IEV�� � ��� ����� ����� �������� ����� ������ ����� ��������� ������ ������� Other comprehensive income - - 1,145 - - 1,145 - 1,145 �8SXEP�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV�� � �� �� ��� �������� �������� ������ ������ ����������� ����� �������� Debenture interest declared and proposed 15 - - (24,888 ) - 24,888 - - - - Taxation attributable to debenture interest 5 - - 5,475 - - - 5,475 - 5,475 Debenture interest paid - - - - (22,648 ) - (22,648 ) - (22,648 ) Dividends declared and proposed 15 - - (4,570 ) - 4,570 - - - - Dividends paid - - - - (1,683 ) - (1,683 ) - (1,683 ) Balance at 31 December 2016 318,983 111,215 347,518 1,145 17,857 - 796,718 - 796,718

7XEXIQIRXW�SJ�'LERKIW�MR�)UYMX]� 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Group Company Notes 2016 2015 2016 2015 P’000 P’000 P’000 P’000

�&DVK�½RZV�IURP�RSHUDWLQJ�DFWLYLWLHV

�4VS½X�JVSQ�STIVEXMSRW�� � ��������� ���������� ��������� ��������7LEVI�SJ�MRGSQI�MR�E�NSMRX�ZIRXYVI��RIX�SJ�JSVIMKR�I\GLERKI�HMJJIVIRGIW�� � ����� � ����� � ����� �����0SWW�SR�HMWTSWEP�SJ�MRZIWXQIRX�TVSTIVX]�� � ���� ����� ����� ����� Depreciation 796 119 30 3 �7YVTPYW�EVMWMRK�SR�VIZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVXMIW�� � �������� � ������� �� �������� � �������� �3TIVEXMRK�MRGSQI�FIJSVI�[SVOMRK�GETMXEP�GLERKIW�� � �������� ��������� ��������� ������� Changes in working capital:

- Decrease/(increase) in trade and other receivables 3,729 (136 ) 5,146 1,365 - (Decrease)/increase in trade and other payables (462 ) (1,786 ) (2,535 ) 2,382 Taxation paid 29 (285 ) (989 ) (686 ) (354 )�2IX�GEWL�KIRIVEXIH�JVSQ�STIVEXMRK�EGXMZMXMIW�� � �������� ��������� ��������� �������

�&DVK�½RZV�IURP�LQYHVWLQJ�DFWLYLWLHV�

� 4YVGLEWI�SJ�TVSTIVX]��TPERX�ERH�IUYMTQIRX�� � �������� � ���� � ������� � ��� Investment property additions (26,643 ) (62,428 ) (15,259 ) (52,353 ) Investment income 3 11,739 1,767 11,601 1,103 Movement in investments - - - (6,119 )�4YVGLEWI�SJ�EZEMPEFPI�JSV�WEPI�MRZIWXQIRX�� � �������� � �� �������� � ����� Net cash used in investing activities (30,635 ) (60,688 ) (16,236 ) (57,375 )

�&DVK�½RZV�IURP�¼QDQFLQJ�DFWLYLWLHV

Dividend income ** 3 436 - 4,627 882 Dividends paid (1,683 ) (423 ) (1,683 ) (423 ) Debenture interest paid (22,648 ) (21,468 ) (22,648 ) (21,468 ) Dividends paid to non-controlling interest (2,880 ) - - - Finance costs 4 (17,541 ) (18,888 ) (8,582 ) (8,834 ) Long term loans raised 29,000 15,300 14,000 15,300 Long term loans repaid (16,485 ) (10,445 ) (4,603 ) - �'SRXVMFYXMSRW�XS�NSMRX�ZIRXYVI���� � ����� ������� � ����� �����-WWYI�SJ�SVHMREV]�WLEVIW�� � ����� ���������� ����� ����������-WWYI�SJ�HIFIRXYVIW�� � ������ ��������� ����� ���������2IX�GEWL��YWIH�MR �KIRIVEXIH�JVSQ�½RERGMRK�EGXMZMXMIW�� � �������� � ���������� �������� � ���������

Net movement in cash and cash equivalents 3,749 187,611 (1,155 ) 191,056 �'EWL�ERH�GEWL�IUYMZEPIRXW�EX�FIKMRRMRK�SJ�]IEV�� � ��������� ������� � ����������� ������� �)JJIGXW�SJ�I\GLERKI�VEXI�SR�XLI�GEWL�LIPH�MR�JSVIMKR�GYVVIRGMIW�� � ����� ����������� ���� Cash and cash equivalents at end of year 182,340 178,485 180,369 181,524

�'SRWMWXMRK�SJ��� � �� �� �� ��

Cash and bank balances 182,339 183,274 180,369 181,524 �&ERO�SZIVHVEJX�� � ������ ������� � ������ ���� 182,339 178,485 180,369 181,524

���-R�4VMSV�]IEV��GSRXVMFYXMSRW�XS�NSMRX�ZIRXYVIW�[IVI�GPEWWM½IH�EW�ER�MRZIWXMRK�EGXMZMX]�ERH�XLI]�LEZI�FIIR�VIGPEWWM½IH�XS�½RERGMRK�EGXMZMXMIW�MR�GYVVIRX�]IEV�XS�EPMKR�XLI�GPEWWM½GEXMSR�XS�XLI�VIUYMVIQIRXW�SJ�-%7�����7XEXIQIRX�SJ�GEWL�¾S[W��

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7XEXIQIRXW�SJ�'EWL�*PS[W 31 December 2016

Page 34: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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�-%7����-RZIWXQIRX�4VSTIVX]��%QIRHQIRXW�XS�GPEVMJ]�XVERWJIVW�SV�TVSTIVX]�XS��SV�JVSQ��MRZIWXQIRX�TVSTIVX] ��IJJIGXMZI�JSV�ERRYEP�TIVMSHW�FIKMRRMRK�SR�SV�EJXIV���.ERYEV]�����

8LI�HMVIGXSVW�[MPP�IZEPYEXI�XLI�MQTEGX�SJ�EHSTXMSR�SJ�WXERHEVHW��EQIRHQIRXW�ERH�MRXIVTVIXEXMSRW�[LIR�XLI]�EVI�IJJIGXMZI�

Basis of accounting8LI�½RERGMEP�WXEXIQIRXW�LEZI�FIIR�TVITEVIH�SR�XLI�LMWXSVMGEP�FEWMW��I\GITX�JSV�XLI�VIZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVXMIW�ERH�GIVXEMR�½RERGMEP�MRWXVYQIRXW�GEVVMIH�EX�JEMV�ZEPYI��8LI�TVMRGMTEP�EGGSYRXMRK�TSPMGMIW��[LMGL�LEZI�FIIR�GSRWMWXIRXP]�JSPPS[IH�MR�EPP�QEXIVMEP�VIWTIGXW��EVI�WIX�SYX�FIPS[� Basis of consolidation8LI� GSRWSPMHEXIH�½RERGMEP� WXEXIQIRXW�±+VSYT�½RERGMEP� WXEXIQIRXW²�� MRGSVTSVEXI� XLI� ½RERGMEP� WXEXIQIRXW�SJ� XLI�'SQTER]� ERH�IRXMXMIW� �MRGPYHMRK�structured entities) controlled by the Company and its subsidiaries. The Group’s accounting policies are similar to those adopted by the Company, MR�XLI�WMKRM½GERX�EGGSYRXMRK�TSPMGMIW��[LIVI�ETTPMGEFPI��+VSYT�EPWS�VIJIVW�XS�'SQTER]��'SRXVSP�MW�EGLMIZIH�[LIR�XLI�'SQTER]�LEW�TS[IV�SZIV�XLI�MRZIWXII��MW�I\TSWIH��SV�LEW�VMKLXW��XS�ZEVMEFPI�VIXYVRW�JVSQ�MXW�MRZSPZIQIRX�[MXL�XLI�MRZIWXII��ERH�LEW�XLI�EFMPMX]�XS�YWI�MXW�TS[IV�XS�EJJIGX�MXW�VIXYVRW�

8LI�'SQTER]�VIEWWIWWIW�[LIXLIV�SV�RSX�MX�GSRXVSPW�ER�MRZIWXII�MJ�JEGXW�ERH�GMVGYQWXERGIW�MRHMGEXI�XLEX�XLIVI�EVI�GLERKIW�XS�SRI�SV�QSVI�SJ�XLI�XLVII�IPIQIRXW�SJ�GSRXVSP�PMWXIH�EFSZI�

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW 31 December 2016

Page 35: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

33

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Basis of consolidation (Continued);LIR�XLI�'SQTER]�LEW�PIWW�XLER�E�QENSVMX]�SJ�XLI�ZSXMRK�VMKLXW�SJ�ER�MRZIWXII��MX�LEW�TS[IV�SZIV�XLI�MRZIWXII�[LIR�XLI�ZSXMRK�VMKLXW�EVI�WYJ½GMIRX�XSKMZI�MX�XLI�TVEGXMGEP�EFMPMX]�XS�HMVIGX�XLI�VIPIZERX�EGXMZMXMIW�SJ�XLI�MRZIWXII�YRMPEXIVEPP]��8LI�'SQTER]�GSRWMHIVW�EPP�VIPIZERX�JEGXW�ERH�GMVGYQWXERGIW�MR�EWWIWWMRK�[LIXLIV�SV�RSX�XLI�'SQTER]´W�ZSXMRK�VMKLXW�MR�ER�MRZIWXII�EVI�WYJ½GMIRX�XS�KMZI�MX�TS[IV��MRGPYHMRK�XLI�WM^I�SJ�XLI�'SQTER]´W�LSPHMRK�SJ�ZSXMRK�VMKLXW�VIPEXMZI�XS�XLI�WM^I�ERH�HMWTIVWMSR�SJ�LSPHMRKW�SJ�XLI�SXLIV�ZSXI�LSPHIVW��TSXIRXMEP�ZSXMRK�VMKLXW�LIPH�F]�XLI�'SQTER]��SXLIV�ZSXI�LSPHIVW�SV�SXLIV�TEVXMIW��VMKLXW�EVMWMRK�JVSQ�SXLIV�GSRXVEGXYEP�EVVERKIQIRXW��ERH�ER]�EHHMXMSREP�JEGXW�ERH�GMVGYQWXERGIW�XLEX�MRHMGEXI�XLEX�XLI�'SQTER]�LEW��or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

'SRWSPMHEXMSR�SJ�E�WYFWMHMEV]�FIKMRW�[LIR�XLI�'SQTER]�SFXEMRW�GSRXVSP�SZIV�XLI�WYFWMHMEV]�ERH�GIEWIW�[LIR�XLI�'SQTER]�PSWIW�GSRXVSP�SJ�XLI�WYFWMHMEV]��7TIGM½GEPP]��MRGSQI�ERH�I\TIRWIW�SJ�E�WYFWMHMEV]�EGUYMVIH�SV�HMWTSWIH�SJ�HYVMRK�XLI�]IEV�EVI�MRGPYHIH�MR�XLI�GSRWSPMHEXIH�WXEXIQIRX�SJ�TVS½X�SV�PSWW�ERH�SXLIV�GSQTVILIRWMZI�MRGSQI�JVSQ�XLI�HEXI�XLI�'SQTER]�KEMRW�GSRXVSP�YRXMP�XLI�HEXI�[LIR�XLI�'SQTER]�GIEWIW�XS�GSRXVSP�XLI�WYFWMHMEV]�

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Changes in the Group’s ownership interests in existing subsidiaries'LERKIW�MR�XLI�+VSYT´W�S[RIVWLMT�MRXIVIWXW� MR�WYFWMHMEVMIW�XLEX�HS�RSX�VIWYPX� MR�XLI�+VSYT�PSWMRK�GSRXVSP�SZIV�XLI�WYFWMHMEVMIW�EVI�EGGSYRXIH�JSV�EW�IUYMX]�XVERWEGXMSRW��8LI�GEVV]MRK�EQSYRXW�SJ�XLI�+VSYT´W�MRXIVIWXW�ERH�XLI�RSR�GSRXVSPPMRK�MRXIVIWXW�EVI�EHNYWXIH�XS�VI¾IGX�XLI�GLERKIW�MR�XLIMV�VIPEXMZI�MRXIVIWXW�MR�XLI�WYFWMHMEVMIW��%R]�HMJJIVIRGI�FIX[IIR�XLI�EQSYRX�F]�[LMGL�XLI�RSR�GSRXVSPPMRK�MRXIVIWXW�EVI�EHNYWXIH�ERH�XLI�JEMV�ZEPYI�SJ�XLI�GSRWMHIVEXMSR�TEMH�SV�VIGIMZIH�MW�VIGSKRMWIH�HMVIGXP]�MR�IUYMX]�ERH�EXXVMFYXIH�XS�S[RIVW�SJ�XLI�'SQTER]�

;LIR�XLI�+VSYT�PSWIW�GSRXVSP�SJ�E�WYFWMHMEV]��E�KEMR�SV�PSWW�MW�VIGSKRMWIH�MR�TVS½X�SV�PSWW�ERH�MW�GEPGYPEXIH�EW�XLI�HMJJIVIRGI�FIX[IIR�XLI�EKKVIKEXI�SJ�XLI�JEMV�ZEPYI�SJ�XLI�GSRWMHIVEXMSR�VIGIMZIH�ERH�XLI�JEMV�ZEPYI�SJ�ER]�VIXEMRIH�MRXIVIWX�ERH�XLI�TVIZMSYW�GEVV]MRK�EQSYRX�SJ�XLI�EWWIXW��MRGPYHMRK�KSSH[MPP �� ERH� PMEFMPMXMIW�SJ� XLI� WYFWMHMEV]�ERH�ER]�RSR�GSRXVSPPMRK� MRXIVIWXW��%PP� EQSYRXW�TVIZMSYWP]� VIGSKRMWIH� MR�SXLIV�GSQTVILIRWMZI� MRGSQI� MR�VIPEXMSR�XS�XLEX�WYFWMHMEV]�EVI�EGGSYRXIH�JSV�EW�MJ�XLI�+VSYT�LEH�HMVIGXP]�HMWTSWIH�SJ�XLI�VIPEXIH�EWWIXW�SV�PMEFMPMXMIW�SJ�XLI�WYFWMHMEV]��M�I��VIGPEWWM½IH�XS�TVS½X�SV�PSWW�SV�XVERWJIVVIH�XS�ERSXLIV�GEXIKSV]�SJ�IUYMX]�EW�WTIGM½IH�TIVQMXXIH�F]�ETTPMGEFPI�-*67W ��8LI�JEMV�ZEPYI�SJ�ER]�MRZIWXQIRX�VIXEMRIH�MR�XLI�JSVQIV�WYFWMHMEV]�EX�XLI�HEXI�[LIR�GSRXVSP�MW�PSWX�MW�VIKEVHIH�EW�XLI�JEMV�ZEPYI�SR�MRMXMEP�VIGSKRMXMSR�JSV�WYFWIUYIRX�EGGSYRXMRK�YRHIV�-%7�����*MRERGMEP�-RWXVYQIRXW��6IGSKRMXMSR�ERH�1IEWYVIQIRX��[LIR�ETTPMGEFPI��XLI�GSWX�SR�MRMXMEP�VIGSKRMXMSR�SJ�ER�MRZIWXQIRX�MR�ER�EWWSGMEXI�SV�E�NSMRX�ZIRXYVI�

Revenue recognition6IZIRYI�MW�VIGSKRMWIH�XS�XLI�I\XIRX�XLEX�MX�MW�TVSFEFPI�XLEX�XLI�IGSRSQMG�FIRI½XW�[MPP�¾S[�XS�XLI�+VSYT�ERH�XLI�VIZIRYI�GER�FI�VIPMEFP]�QIEWYVIH���6IZIRYI�MW�VIGSVHIH�EX�XLI�JEMV�ZEPYI�SJ�XLI�GSRWMHIVEXMSR�VIGIMZIH�SV�VIGIMZEFPI�RIX�SJ�:EPYI�%HHIH�8E\��±:%8² ���6IZIRYI�MW�VIHYGIH�JSV�IWXMQEXIH�customer credits, rebates and other similar allowances. Rental income 6IRXEP�MRGSQI�JVSQ�STIVEXMRK�PIEWIW�MW�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�SR�E�WXVEMKLX�PMRI�FEWMW�SZIV�XLI�XIVQ�SJ�VIPIZERX�PIEWIW��-RMXMEP�HMVIGX�GSWXW�MRGYVVIH�MR�RIKSXMEXMRK�ERH�EVVERKMRK�ER�STIVEXMRK�PIEWI�EVI�EHHIH�XS�XLI�GEVV]MRK�EQSYRX�SJ�XLI�PIEWIH�EWWIX�ERH�VIGSKRMWIH�SR�the straight line basis over the lease term. 8LI�GLERKI�MR�JEMV�ZEPYI�SJ�MRZIWXQIRX�TVSTIVXMIW�MW�SJJWIX�EKEMRWX�XLI�VIRXEP�WXVEMKLX�PMRI�EHNYWXQIRX�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW Cont. 31 December 2016

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34

Dividend Income(MZMHIRH�MRGSQI�MW�VIGSKRMWIH�[LIR�XLI�WLEVILSPHIVW �VMKLX�XS�VIGIMZI�TE]QIRX�LEW�FIIR�IWXEFPMWLIH�ERH�MW�QIEWYVIH�KVSWW�SJ�[MXLLSPHMRK�XE\� Other operating revenue 3XLIV�STIVEXMRK�VIZIRYI�GSQTVMWIW�YXMPMX]�I\TIRWIW��WIVZMGI�PIZMIW�ERH�SXLIV�GSWXW�VIGSZIVIH�JVSQ�XIRERXW�[LMGL�MW�VIGSKRMWIH�MR�XLI�TVS½X�ERH�PSWW�statement on an accrual basis. Interest -RXIVIWX�MW�EGGVYIH�SR�E�XMQI�FEWMW��F]�VIJIVIRGI�XS�XLI�TVMRGMTEP�SYXWXERHMRK�ERH�XLI�IJJIGXMZI�MRXIVIWX�VEXI�ETTPMGEFPI��[LMGL�MW�XLI�VEXI�XLEX�I\EGXP]�HMWGSYRXW�IWXMQEXIH�JYXYVI�GEWL�VIGIMTXW�XLVSYKL�XLI�I\TIGXIH�PMJI�SJ�XLI�½RERGMEP�EWWIX�XS�XLI�EWWIX´W�RIX�GEVV]MRK�EQSYRX�

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8LI�+VSYT�HMWGSRXMRYIW�XLI�YWI�SJ�XLI�IUYMX]�QIXLSH�JVSQ�XLI�HEXI�[LIR�XLI�MRZIWXQIRX�GIEWIW�XS�FI�ER�EWWSGMEXI�SV�E�NSMRX�ZIRXYVI��SV�[LIR�XLI�MRZIWXQIRX�MW�GPEWWM½IH�EW�LIPH�JSV�WEPI��;LIR�XLI�+VSYT�VIXEMRW�ER�MRXIVIWX�MR�XLI�JSVQIV�EWWSGMEXI�SV�NSMRX�ZIRXYVI�ERH�XLI�VIXEMRIH�MRXIVIWX�MW�E�½RERGMEP�EWWIX��XLI�+VSYT�QIEWYVIW�XLI�VIXEMRIH�MRXIVIWX�EX�JEMV�ZEPYI�EX�XLEX�HEXI�ERH�XLI�JEMV�ZEPYI�MW�VIKEVHIH�EW�MXW�JEMV�ZEPYI�SR�MRMXMEP�VIGSKRMXMSR�MR� EGGSVHERGI�[MXL� -%7� ����8LI� HMJJIVIRGI� FIX[IIR� XLI� GEVV]MRK� EQSYRX� SJ� XLI� EWWSGMEXI� SV� NSMRX� ZIRXYVI� EX� XLI� HEXI� XLI� IUYMX]�QIXLSH�[EW�HMWGSRXMRYIH��ERH�XLI�JEMV�ZEPYI�SJ�ER]�VIXEMRIH�MRXIVIWX�ERH�ER]�TVSGIIHW�JVSQ�HMWTSWMRK�SJ�E�TEVX�MRXIVIWX�MR�XLI�EWWSGMEXI�SV�NSMRX�ZIRXYVI�MW�MRGPYHIH�MR�XLI�HIXIVQMREXMSR�SJ�XLI�KEMR�SV�PSWW�SR�XLI�HMWTSWEP�SJ�XLI�EWWSGMEXI�SV�NSMRX�ZIRXYVI��-R�EHHMXMSR��XLI�+VSYT�EGGSYRXW�JSV�EPP�EQSYRXW�TVIZMSYWP]�VIGSKRMWIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�MR�VIPEXMSR�XS�XLEX�EWWSGMEXI�SV�NSMRX�ZIRXYVI�SR�XLI�WEQI�FEWMW�EW�[SYPH�FI�VIUYMVIH�MJ�XLI�EWWSGMEXI�SV�NSMRX�ZIRXYVI�LEH�HMVIGXP]�HMWTSWIH�SJ�XLI�VIPEXIH�EWWIXW�SV�PMEFMPMXMIW��8LIVIJSVI��MJ�E�KEMR�SV�PSWW�TVIZMSYWP]�VIGSKRMWIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�F]�XLEX�EWWSGMEXI�SV�NSMRX�ZIRXYVI�[SYPH�FI�VIGPEWWM½IH�XS�TVS½X�SV�PSWW�SR�XLI�HMWTSWEP�SJ�XLI�VIPEXIH�EWWIXW�SV�PMEFMPMXMIW��XLI�+VSYT�VIGPEWWM½IW�XLI�KEMR�SV�PSWW�JVSQ�IUYMX]�XS�TVS½X�SV�PSWW��EW�E�VIGPEWWM½GEXMSR�EHNYWXQIRX �[LIR�XLI�IUYMX]�QIXLSH�MW�HMWGSRXMRYIH� 8LI�+VSYT�GSRXMRYIW�XS�YWI�XLI�IUYMX]�QIXLSH�[LIR�ER�MRZIWXQIRX�MR�ER�EWWSGMEXI�FIGSQIW�ER�MRZIWXQIRX�MR�E�NSMRX�ZIRXYVI�SV�ER�MRZIWXQIRX�MR�E�NSMRX�ZIRXYVI�FIGSQIW�ER�MRZIWXQIRX�MR�ER�EWWSGMEXI��8LIVI�MW�RS�VIQIEWYVIQIRX�XS�JEMV�ZEPYI�YTSR�WYGL�GLERKIW�MR�S[RIVWLMT�MRXIVIWXW� ;LIR�XLI�+VSYT�VIHYGIW�MXW�S[RIVWLMT�MRXIVIWX�MR�ER�EWWSGMEXI�SV�E�NSMRX�ZIRXYVI�FYX�XLI�+VSYT�GSRXMRYIW�XS�YWI�XLI�IUYMX]�QIXLSH��XLI�+VSYT�VIGPEWWM½IW�XS�TVS½X�SV�PSWW�XLI�TVSTSVXMSR�SJ�XLI�KEMR�SV�PSWW�XLEX�LEH�TVIZMSYWP]�FIIR�VIGSKRMWIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�VIPEXMRK�XS�XLI�VIHYGXMSR�MR�S[RIVWLMT�MRXIVIWX�MJ�XLEX�KEMR�SV�PSWW�[SYPH�FI�VIGPEWWM½IH�XS�TVS½X�SV�PSWW�SR�XLI�HMWTSWEP�SJ�XLI�VIPEXIH�EWWIXW�SV�PMEFMPMXMIW� ;LIR�E�+VSYT�IRXMX]�XVERWEGXW�[MXL�ER�EWWSGMEXI�SV�E�NSMRX�ZIRXYVI�SJ�XLI�+VSYT��TVS½XW�ERH�PSWWIW�VIWYPXMRK�JVSQ�XLI�XVERWEGXMSRW�[MXL�XLI�EWWSGMEXI�SV�NSMRX�ZIRXYVI�EVI�VIGSKRMWIH�MR�XLI�+VSYT´W�½RERGMEP�WXEXIQIRXW�SRP]�XS�XLI�I\XIRX�SJ�MRXIVIWXW�MR�XLI�EWWSGMEXI�SV�NSMRX�ZIRXYVI�XLEX�EVI�RSX�VIPEXIH�to the Group.

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW�Cont. 31 December 2016

Page 37: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

35

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Interests in joint operations%� NSMRX� ZIRXYVI�STIVEXMSR� MW� E� NSMRX� EVVERKIQIRX�[LIVIF]� XLI�TEVXMIW� XLEX� LEZI� NSMRX� GSRXVSP�SJ� XLI� EVVERKIQIRX�LEZI� VMKLXW� XS� XLI� EWWIXW�� ERH�SFPMKEXMSRW�JSV�XLI�PMEFMPMXMIW��VIPEXMRK�XS�XLI�EVVERKIQIRX��.SMRX�GSRXVSP�MW�XLI�GSRXVEGXYEPP]�EKVIIH�WLEVMRK�SJ�GSRXVSP�SJ�ER�EVVERKIQIRX��[LMGL�I\MWXW�SRP]�[LIR�HIGMWMSRW�EFSYX�XLI�VIPIZERX�EGXMZMXMIW�VIUYMVI�YRERMQSYW�GSRWIRX�SJ�XLI�TEVXMIW�WLEVMRK�GSRXVSP��

;LIR�E�KVSYT�IRXMX]�YRHIVXEOIW� MXW�EGXMZMXMIW�YRHIV� NSMRX�STIVEXMSRW��XLI�+VSYT�EW�E� NSMRX�STIVEXSV�VIGSKRMWIW� MR�VIPEXMSR�XS�MXW� MRXIVIWX� MR�E� NSMRX�operation: �-XW�EWWIXW��MRGPYHMRK�MXW�WLEVI�SJ�ER]�EWWIXW�LIPH�NSMRXP]��-XW�PMEFMPMXMIW��MRGPYHMRK�MXW�WLEVI�SJ�ER]�PMEFMPMXMIW�MRGYVVIH�NSMRXP]��-XW�VIZIRYI�JVSQ�XLI�WEPI�SJ�MXW�WLEVI�SJ�XLI�SYXTYX�EVMWMRK�JVSQ�XLI�NSMRX�STIVEXMSR��-XW�WLEVI�SJ�XLI�VIZIRYI�JVSQ�XLI�WEPI�SJ�XLI�SYXTYX�F]�XLI�NSMRX�STIVEXMSR��-XW�I\TIRWIW��MRGPYHMRK�MXW�WLEVI�SJ�ER]�I\TIRWIW�MRGYVVIH�NSMRXP]�

8LI�+VSYT�EGGSYRXW�JSV�XLI�EWWIXW��PMEFMPMXMIW��VIZIRYIW�ERH�I\TIRWIW�VIPEXMRK�XS�MXW�MRXIVIWX�MR�E�NSMRX�STIVEXMSR�MR�EGGSVHERGI�[MXL�XLI�-*67W�ETTPMGEFPI�to the particular assets, liabilities, revenues and expenses.

;LIR�E�+VSYT�IRXMX]�XVERWEGXW�[MXL�E�NSMRX�STIVEXMSR�MR�[LMGL�E�KVSYT�IRXMX]�MW�E�NSMRX�STIVEXSV��WYGL�E�WEPI�SV�GSRXVMFYXMSR�SJ�EWWIXW ��XLI�+VSYT�MW�GSRWMHIVIH�XS�FI�GSRHYGXMRK�XLI�XVERWEGXMSR�[MXL�XLI�SXLIV�TEVXMIW�XS�XLI�NSMRX�STIVEXMSR��ERH�KEMRW�ERH�PSWWIW�VIWYPXMRK�JVSQ�XLI�XVERWEGXMSRW�EVI�VIGSKRMWIH�MR�XLI�+VSYT´W�GSRWSPMHEXIH�½RERGMEP�WXEXIQIRXW�SRP]�XS�XLI�I\XIRX�SJ�SXLIV�TEVXMIW �MRXIVIWXW�MR�XLI�STIVEXMSR�

;LIR�E�+VSYT�IRXMX]�XVERWEGXW�[MXL�E�NSMRX�STIVEXMSR�MR�[LMGL�E�KVSYT�IRXMX]�MW�E�NSMRX�STIVEXMSR��WYGL�EW�E�TYVGLEWI�SJ�EWWIXW ��XLI�+VSYT�HSIW�RSX�VIGSKRMWI�MXW�WLEVI�SJ�XLI�KEMRW�ERH�PSWWIW�YRXMP�MX�VIWIPPW�XLSWI�EWWIXW�XS�E�XLMVH�TEVX]�

Financial instruments*MRERGMEP�EWWIXW�ERH�½RERGMEP�PMEFMPMXMIW�EVI�VIGSKRMWIH�SR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�[LIR�XLI�+VSYT�ERH�XLI�'SQTER]�FIGSQI�TEVX]�XS�XLI�GSRXVEGXYEP�TVSZMWMSRW�SJ�XLI�MRWXVYQIRX�

*MRERGMEP�EWWIXW�ERH�½RERGMEP�PMEFMPMXMIW�EVI�MRMXMEPP]�QIEWYVIH�EX�JEMV�ZEPYI��8VERWEGXMSR�GSWXW�XLEX�EVI�HMVIGXP]�EXXVMFYXEFPI�XS�XLI�EGUYMWMXMSR�SV�MWWYI�SJ�½RERGMEP�EWWIXW�ERH�½RERGMEP�PMEFMPMXMIW��SXLIV�XLER�½RERGMEP�EWWIXW�ERH�½RERGMEP�PMEFMPMXMIW�EX�JEMV�ZEPYI�XLVSYKL�TVS½X�SV�PSWW �EVI�EHHIH�XS�SV�HIHYGXIH�JVSQ� XLI� JEMV� ZEPYI�SJ� XLI�½RERGMEP� EWWIXW�SV� ½RERGMEP� PMEFMPMXMIW�� EW� ETTVSTVMEXI��SR� MRMXMEP� VIGSKRMXMSR��8VERWEGXMSR� GSWXW�HMVIGXP]� EXXVMFYXEFPI� XS� XLI�EGUYMWMXMSR�SJ�½RERGMEP�EWWIXW�SV�½RERGMEP�PMEFMPMXMIW�EX�JEMV�ZEPYI�XLVSYKL�TVS½X�SV�PSWW�EVI�VIGSKRMWIH�MQQIHMEXIP]�MR�TVS½X�SV�PSWW�� Financial assets Loans and receivables8VEHI�VIGIMZEFPIW��VIPEXIH�GSQTER]�FEPERGIW�ERH�SXLIV�VIGIMZEFPIW�XLEX�LEZI�½\IH�SV�HIXIVQMREFPI�TE]QIRXW�XLEX�EVI�RSX�UYSXIH�MR�ER�EGXMZI�QEVOIX�EVI�GPEWWM½IH�EW�PSERW�ERH�VIGIMZEFPIW��0SERW�ERH�VIGIMZEFPIW�EVI�QIEWYVIH�EX�EQSVXMWIH�GSWX�YWMRK�XLI�IJJIGXMZI�MRXIVIWX�QIXLSH��PIWW�ER]�MQTEMVQIRX��-RXIVIWX�MRGSQI�MW�VIGSKRMWIH�F]�ETTP]MRK�XLI�IJJIGXMZI�MRXIVIWX�VEXI��I\GITX�JSV�WLSVX�XIVQ�VIGIMZEFPIW�[LIR�XLI�VIGSKRMXMSR�SJ� MRXIVIWX�[SYPH�FI�immaterial. )JJIGXMZI�MRXIVIWX�QIXLSH8LI�IJJIGXMZI�MRXIVIWX�QIXLSH�MW�E�QIXLSH�SJ�GEPGYPEXMRK�XLI�EQSVXMWIH�GSWX�SJ�E�½RERGMEP�EWWIX�ERH�SJ�EPPSGEXMRK�MRXIVIWX�MRGSQI�SZIV�XLI�VIPIZERX�TIVMSH��8LI�IJJIGXMZI�MRXIVIWX�VEXI�MW�XLI�VEXI�XLEX�I\EGXP]�HMWGSYRXW�IWXMQEXIH�JYXYVI�GEWL�¾S[W�XLVSYKL�XLI�I\TIGXIH�PMJI�SJ�XLI�½RERGMEP�EWWIX��SV��[LIVI�appropriate, a shorter period.

-RXIVIWX�MRGSQI�MW�VIGSKRMWIH�SR�ER�IJJIGXMZI�MRXIVIWX�FEWMW�JSV�½RERGMEP�EWWIXW�

Cash and cash equivalents'EWL�ERH�GEWL�IUYMZEPIRXW�EVI�HI½RIH�EW�GEWL�SR�LERH��HIQERH�HITSWMXW�ERH�WLSVX� XIVQ�LMKLP]� PMUYMH� MRZIWXQIRXW�VIEHMP]�GSRZIVXMFPI� XS�ORS[R�EQSYRXW�SJ�GEWL�ERH�WYFNIGX�XS�MRWMKRM½GERX�VMWO�SJ�GLERKIW�MR�ZEPYI�

-QTEMVQIRX�SJ�½RERGMEP�EWWIXW 8VEHI�VIGIMZEFPIW�EVI�EWWIWWIH�JSV�MQTEMVQIRX�SR�E�GSPPIGXMZI�FEWMW��3FNIGXMZI�IZMHIRGI�SJ�MQTEMVQIRX�JSV�E�TSVXJSPMS�SJ�VIGIMZEFPIW�GSYPH�MRGPYHI�XLI�+VSYT´W�SV�'SQTER]´W�TEWX�I\TIVMIRGI�SJ�GSPPIGXMRK�TE]QIRXW��ER�MRGVIEWI�MR�XLI�RYQFIV�SJ�HIPE]IH�TE]QIRXW�MR�XLI�TSVXJSPMS�TEWX�XLI�EZIVEKI�GVIHMX�TIVMSH�SJ����HE]W��EW�[IPP�EW�SFWIVZEFPI�GLERKIW�MR�REXMSREP�SV�PSGEP�IGSRSQMG�GSRHMXMSRW�XLEX�GSVVIPEXI�[MXL�HIJEYPX�SR�VIGIMZEFPIW��

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW Cont. 31 December 2016

Page 38: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

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Impairment of Financial assets (Continued)&IJSVI�EGGITXMRK�ER]�RI[�XIRERX��XLI�+VSYT�ERH�'SQTER]�EWWIWWIW�XLI�TSXIRXMEP�GVIHMX�UYEPMX]��ERH�SFXEMRW�WYVIX]�EW�E�QIEWYVI�SJ�TVSXIGXMSR�EKEMRWX�TSWWMFPI�HIJEYPX�MR�JYXYVI�TE]QIRXW�

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Trade and other receivables, which generally have 30 to 90 day terms, are recognised and carried at original invoice amount less impairment losses. -QTEMVQIRX�PSWWIW�EVI�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�[LIR�GSPPIGXMSR�SJ�XLI�JYPP�EQSYRX�MW�RS�PSRKIV�TVSFEFPI��-QTEMVQIRX�PSWWIW�EVI�[VMXXIR�SJJ�EW�MRGYVVIH� (IVIGSKRMXMSR�SJ�½RERGMEP�EWWIXW 8LI�+VSYT�ERH�XLI�'SQTER]�HIVIGSKRMWI�E�½RERGMEP�EWWIX�SRP]�[LIR�XLI�GSRXVEGXYEP�VMKLXW�XS�XLI�GEWL�¾S[W�JVSQ�XLI�EWWIX�I\TMVI��SV�MX�XVERWJIVW�XLI�½RERGMEP�EWWIX�ERH�WYFWXERXMEPP]�EPP�XLI�VMWOW�ERH�VI[EVHW�SJ�S[RIVWLMT�SJ�XLI�EWWIX�XS�ERSXLIV�IRXMX]��-J�XLI�+VSYT�SV�'SQTER]�RIMXLIV�XVERWJIV�RSV�VIXEMR�WYFWXERXMEPP]�EPP�XLI�VMWOW�ERH�VI[EVHW�SJ�S[RIVWLMT�ERH�GSRXMRYI�XS�GSRXVSP�XLI�XVERWJIVVIH�EWWIX��XLI]�VIGSKRMWI�XLIMV�VIXEMRIH�MRXIVIWX�MR�XLI�EWWIX�ERH�ER�EWWSGMEXIH�PMEFMPMX]�JSV�EQSYRXW�XLI]�QE]�LEZI�XS�TE]��-J�XLI�+VSYT�SV�'SQTER]�VIXEMR�WYFWXERXMEPP]�EPP�XLI�VMWOW�ERH�VI[EVHW�SJ�S[RIVWLMT�SJ�E�XVERWJIVVIH�½RERGMEP�EWWIX��XLI]�GSRXMRYI�XS�VIGSKRMWI�XLI�½RERGMEP�EWWIX�ERH�EPWS�VIGSKRMWI�E�GSPPEXIVEPMWIH�FSVVS[MRK�JSV�XLI�TVSGIIHW�VIGIMZIH��

3R�HIVIGSKRMXMSR�SJ�E�½RERGMEP�EWWIX�QIEWYVIH�EX�EQSVXMWIH�GSWX��XLI�HMJJIVIRGI�FIX[IIR�XLI�EWWIX´W�GEVV]MRK�EQSYRX�ERH�XLI�WYQ�SJ�XLI�GSRWMHIVEXMSR�VIGIMZIH�ERH�VIGIMZEFPI�MW�VIGSKRMWIH�MR�TVS½X�SV�PSWW� Financial liabilities 8LI�+VSYT´W�ERH�XLI�'SQTER]´W�WMKRM½GERX�½RERGMEP�PMEFMPMXMIW�MRGPYHI�MRXIVIWX�FIEVMRK�PSERW��VIPEXIH�GSQTERMIW�FEPERGIW�ERH�XVEHI�ERH�SXLIV�TE]EFPIW��[LMGL�LEZI�FIIR�GPEWWM½IH�EW�SXLIV�½RERGMEP�PMEFMPMXMIW� -RXIVIWX�FIEVMRK�PSERW�EVI�MRMXMEPP]�QIEWYVIH�EX�JEMV�ZEPYI��RIX�SJ�XVERWEGXMSR�GSWXW���3XLIV�½RERGMEP�PMEFMPMXMIW�EVI�WYFWIUYIRXP]�QIEWYVIH�EX�EQSVXMWIH�GSWX�YWMRK�XLI�IJJIGXMZI�MRXIVIWX�QIXLSH��[MXL�MRXIVIWX�I\TIRWI�VIGSKRMWIH�SR�ER�IJJIGXMZI�]MIPH�FEWMW�

8LI�IJJIGXMZI�MRXIVIWX�QIXLSH�MW�E�QIXLSH�SJ�GEPGYPEXMRK�XLI�EQSVXMWIH�GSWX�SJ�E�½RERGMEP�PMEFMPMX]�ERH�SJ�EPPSGEXMRK�MRXIVIWX�I\TIRWI�SZIV�XLI�VIPIZERX�TIVMSH��8LI�IJJIGXMZI�MRXIVIWX�VEXI�MW�XLI�VEXI�XLEX�I\EGXP]�HMWGSYRXW�IWXMQEXIH�JYXYVI�GEWL�TE]QIRXW�XLVSYKL�XLI�I\TIGXIH�PMJI�SJ�XLI�½RERGMEP�PMEFMPMX]��or, where appropriate, a shorter period. Equity and debt instruments, which comprise the stated capital and the variable rate unsecured debentures, are recorded at the proceeds received RIX�SJ�HMVIGX�MWWYI�GSWXW�

(IVIGSKRMXMSR�SJ�½RERGMEP�PMEFMPMXMIW 8LI�+VSYT�ERH�XLI�'SQTER]�HIVIGSKRMWI�½RERGMEP�PMEFMPMXMIW�[LIR��ERH�SRP]�[LIR��XLIMV�SFPMKEXMSRW�EVI�HMWGLEVKIH��GERGIPPIH�SV�XLI]�I\TMVI� +EMRW�ERH�PSWWIW�SR�WYFWIUYIRX�QIEWYVIQIRX�SJ�½RERGMEP�MRWXVYQIRXW +EMRW�ERH�PSWWIW�EVMWMRK�JVSQ�E�GLERKI�MR�XLI�JEMV�ZEPYI�SJ�½RERGMEP�MRWXVYQIRXW�EVI�MRGPYHIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�MR�XLI�TIVMSH�in which the change arises.

3JJWIXXMRK�SJ�½RERGMEP�MRWXVYQIRXW *MRERGMEP�EWWIXW�ERH�½RERGMEP�PMEFMPMXMIW�EVI�SJJWIX�ERH�XLI�RIX�EQSYRX�VITSVXIH�MR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�[LIR�XLI�+VSYT�ERH�XLI�'SQTER]�LEZI�E�PIKEPP]�IRJSVGIEFPI�VMKLX�XS�WIX�SJJ�XLI�VIGSKRMWIH�EQSYRXW��ERH�MRXIRH�IMXLIV�XS�WIXXPI�SR�E�RIX�FEWMW��SV�XS�VIEPMWI�XLI�EWWIX�ERH�WIXXPI�XLI�PMEFMPMX]�simultaneously.

Equity instruments%R�IUYMX]�MRWXVYQIRX�MW�ER]�GSRXVEGX�XLEX�IZMHIRGIW�E�VIWMHYEP�MRXIVIWX�MR�XLI�EWWIXW�SJ�ER�IRXMX]�EJXIV�HIHYGXMRK�EPP�SJ�MXW�PMEFMPMXMIW��)UYMX]�MRWXVYQIRXW�MWWYIH�F]�XLI�'SQTER]�EVI�VIGSVHIH�EX�XLI�TVSGIIHW�VIGIMZIH��RIX�SJ�HMVIGX�MWWYI�GSWXW� InvestmentsAll current investments are reported at cost less accumulated impairment losses.

Debenture interest and dividends(IFIRXYVI�MRXIVIWX�ERH�HMZMHIRHW�TVSTSWIH�EJXIV��XLI�½RERGMEP�TSWMXMSR�HEXI�EVI�WLS[R�EW�E�GSQTSRIRX�SJ�IUYMX]�

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW�Cont. 31 December 2016

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37

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Investment properties-RZIWXQIRX�TVSTIVXMIW�EVI�LIPH�XS�IEVR�VIRXEPW�ERH�JSV�GETMXEP�ETTVIGMEXMSR��-RZIWXQIRX�TVSTIVXMIW�EVI�MRMXMEPP]�QIEWYVIH�EX�GSWX��MRGPYHMRK�XVERWEGXMSR�GSWXW��7YFWIUYIRX�XS�MRMXMEP�VIGSKRMXMSR��MRZIWXQIRX�TVSTIVXMIW�EVI�WXEXIH�EX�XLIMV�JEMV�ZEPYIW�EX�IEGL�WXEXIQIRX�SJ�½RERGMEP�TSWMXMSR�HEXI��+EMRW�SV�PSWWIW�EVMWMRK�MR�GLERKIW�XS�JEMV�ZEPYI�SJ�MRZIWXQIRX�TVSTIVXMIW�EVI�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�MR�XLI�TIVMSH�MR�[LMGL�XLI]�EVMWI�

Property, plant and equipment4VSTIVXMIW�MR�XLI�GSYVWI�SJ�GSRWXVYGXMSR�EVI�VI¾IGXIH�EW�GETMXEP�[SVO�MR�TVSKVIWW�ERH�EVI�GEVVMIH�EX�GSWX��PIWW�ER]�VIGSKRMWIH�MQTEMVQIRX�PSWW��'SWX�MRGPYHIW�TVSJIWWMSREP�JIIW�ERH��JSV�UYEPMJ]MRK�EWWIXW��FSVVS[MRK�GSWXW�EVI�GETMXEPMWIH�MR�EGGSVHERGI�[MXL�XLI�+VSYT´W�ERH�XLI�'SQTER]´W�EGGSYRXMRK�TSPMGMIW��'SQTPIXIH�TVSTIVXMIW��TPERX�ERH�IUYMTQIRX��I\GPYHMRK�MRZIWXQIRX�TVSTIVXMIW �EVI�WXEXIH�MR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�EX�GSWX�PIWW�EGGYQYPEXIH�HITVIGMEXMSR�ERH�ER]�MQTEMVQIRX�PSWWIW��8LI�QIXLSHW�SJ�HITVIGMEXMSR��YWIJYP�PMZIW�ERH�VIWMHYEP�ZEPYIW�EVI�VIZMI[IH�ERRYEPP]� (ITVIGMEXMSR�MW�GEPGYPEXIH�SR�XLI�WXVEMKLX�PMRI�FEWMW�XS�[VMXI�SJJ�XLI�GSWX�SJ�IEGL�EWWIX�XS�MXW�VIWMHYEP�ZEPYI�SZIV�MXW�IWXMQEXIH�YWIJYP�PMJI�EW�JSPPS[W� Leasehold buildings 20 - 50 yearsFurniture and equipment 2 - 10 years%MVGVEJX�� ���]IEVW

8LI�KEMR�SV�PSWW�EVMWMRK�SR�XLI�HMWTSWEP�SV�VIXMVIQIRX�SJ�ER�MXIQ�SJ�TVSTIVX]��TPERX�ERH�IUYMTQIRX�MW�HIXIVQMRIH�EW�HMJJIVIRGI�FIX[IIR�XLI�WEPIW�TVSGIIHW��ERH�XLI�GEVV]MRK�EQSYRX�SJ�XLI�EWWIX�ERH�MW�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�

Intangible assetsIntangible assets acquired separately are reported at cost less accumulated impairment losses. The intangible asset has been assessed as having an MRHI½RMXI�YWIJYP�PMJI�EW�MX�VIPEXIW�XS�ER�MRHI½RMXI�PMGIRGI�EGUYMVIH�XS�FYMPH�ERH�STIVEXI�E�LSXIP�MR�XLI�'IRXVEP�&YWMRIWW�(MWXVMGX��%W�WYGL��XLI�MRXERKMFPI�EWWIX�MW�RSX�EQSVXMWIH��8LI�IWXMQEXIH�YWIJYP�PMJI�MW�VIZMI[IH�EX�XLI�IRH�SJ�IEGL�ERRYEP�VITSVXMRK�TIVMSH��[MXL�XLI�IJJIGX�SJ�ER]�GLERKIW�MR�IWXMQEXI�FIMRK�EGGSYRXIH�JSV�SR�E�TVSWTIGXMZI�FEWMW�

,PSDLUPHQW�RI�WDQJLEOH�DQG�LQWDQJLEOH�DVVHWV�RWKHU�WKDQ�JRRGZLOO%X�XLI�IRH�SJ�IEGL�VITSVXMRK�TIVMSH��XLI�+VSYT�VIZMI[W�XLI�GEVV]MRK�EQSYRXW�SJ�MXW�XERKMFPI�ERH�MRXERKMFPI�EWWIXW�XS�HIXIVQMRI�[LIXLIV�XLIVI�MW�ER]�MRHMGEXMSR�XLEX�XLSWI�EWWIXW�LEZI�WYJJIVIH�ER�MQTEMVQIRX�PSWW��-J�ER]�WYGL�MRHMGEXMSR�I\MWXW��XLI�VIGSZIVEFPI�EQSYRX�SJ�XLI�EWWIX�MW�IWXMQEXIH�MR�SVHIV�XS�HIXIVQMRI�XLI�I\XIRX�SJ�XLI�MQTEMVQIRX�PSWW��MJ�ER] ��;LIR�MX�MW�RSX�TSWWMFPI�XS�IWXMQEXI�XLI�VIGSZIVEFPI�EQSYRX�SJ�ER�MRHMZMHYEP�EWWIX��XLI�+VSYT�IWXMQEXIW�XLI�VIGSZIVEFPI�EQSYRX�SJ�XLI�GEWL�KIRIVEXMRK�YRMX�XS�[LMGL�XLI�EWWIX�FIPSRKW��;LIR�E�VIEWSREFPI�ERH�GSRWMWXIRX�FEWMW�SJ�EPPSGEXMSR�GER�FI�MHIRXM½IH��GSVTSVEXI�EWWIXW�EVI�EPWS�EPPSGEXIH�XS�MRHMZMHYEP�GEWL�KIRIVEXMRK�YRMXW��SV�SXLIV[MWI�XLI]�EVI�EPPSGEXIH�XS�XLI�WQEPPIWX�KVSYT�SJ�GEWL�KIRIVEXMRK�YRMXW�JSV�[LMGL�E�VIEWSREFPI�ERH�GSRWMWXIRX�EPPSGEXMSR�FEWMW�GER�FI�MHIRXM½IH�

-RXERKMFPI�EWWIXW�[MXL�MRHI½RMXI�YWIJYP�PMZIW�ERH�MRXERKMFPI�EWWIXW�RSX�]IX�EZEMPEFPI�JSV�YWI�EVI�XIWXIH�JSV�MQTEMVQIRX�EX�PIEWX�ERRYEPP]��ERH�[LIRIZIV�XLIVI�is an indication that the asset may be impaired.

6IGSZIVEFPI�EQSYRX�MW�XLI�LMKLIV�SJ�JEMV�ZEPYI�PIWW�GSWXW�SJ�HMWTSWEP�ERH�ZEPYI�MR�YWI��-R�EWWIWWMRK�ZEPYI�MR�YWI��XLI�IWXMQEXIH�JYXYVI�GEWL�¾S[W�EVI�HMWGSYRXIH�XS�XLIMV�TVIWIRX�ZEPYI�YWMRK�E�TVI�XE\�HMWGSYRX�VEXI�XLEX�VI¾IGXW�GYVVIRX�QEVOIX�EWWIWWQIRXW�SJ�XLI�XMQI�ZEPYI�SJ�QSRI]�ERH�XLI�VMWOW�WTIGM½G�XS�XLI�EWWIX�JSV�[LMGL�XLI�IWXMQEXIW�SJ�JYXYVI�GEWL�¾S[W�LEZI�RSX�FIIR�EHNYWXIH� -J�XLI�VIGSZIVEFPI�EQSYRX�SJ�ER�EWWIX��SV�GEWL�KIRIVEXMRK�YRMX �MW�IWXMQEXIH�XS�FI�PIWW�XLER�MXW�GEVV]MRK�EQSYRX��XLI�GEVV]MRK�EQSYRX�SJ�XLI�EWWIX��SV�GEWL�KIRIVEXMRK�YRMX �MW�VIHYGIH�XS�MXW�VIGSZIVEFPI�EQSYRX��%R�MQTEMVQIRX�PSWW�MW�VIGSKRMWIH�MQQIHMEXIP]�MR�TVS½X�SV�PSWW��YRPIWW�XLI�VIPIZERX�EWWIX�MW�carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

;LIR�ER�MQTEMVQIRX�PSWW�WYFWIUYIRXP]�VIZIVWIW��XLI�GEVV]MRK�EQSYRX�SJ�XLI�EWWIX��SV�E�GEWL�KIRIVEXMRK�YRMX �MW�MRGVIEWIH�XS�XLI�VIZMWIH�IWXMQEXI�SJ�its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no MQTEMVQIRX�PSWW�FIIR�VIGSKRMWIH�JSV�XLI�EWWIX��SV�GEWL�KIRIVEXMRK�YRMX �MR�TVMSV�]IEVW��%�VIZIVWEP�SJ�ER�MQTEMVQIRX�PSWW�MW�VIGSKRMWIH�MQQIHMEXIP]�MR�TVS½X�SV�PSWW��YRPIWW�XLI�VIPIZERX�EWWIX�MW�GEVVMIH�EX�E�VIZEPYIH�EQSYRX��MR�[LMGL�GEWI�XLI�VIZIVWEP�SJ�XLI�MQTEMVQIRX�PSWW�MW�XVIEXIH�EW�E�VIZEPYEXMSR�increase.

Taxation8E\�I\TIRWI�GSQTVMWIW�GYVVIRX��[MXLLSPHMRK�ERH�HIJIVVIH�XE\�

Current tax8LI�GLEVKI�JSV�GYVVIRX�XE\�MW�FEWIH�SR�XLI�VIWYPXW�JSV�XLI�]IEV�EW�EHNYWXIH�JSV�MXIQW�[LMGL�EVI�RSR�EWWIWWEFPI�SV�HMWEPPS[IH��-X�MW�GEPGYPEXIH�YWMRK�XE\�VEXIW�XLEX�LEZI�FIIR�IREGXIH�SV�WYFWXERXMZIP]�IREGXIH�EX�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�HEXI�

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW Cont. 31 December 2016

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38

Taxation (Continued)Deferred tax(IJIVVIH�XE\�MW�EGGSYRXIH�JSV�YWMRK�XLI�WXEXIQIRX�SJ�½RERGMEP�TSWMXMSR�PMEFMPMX]�QIXLSH�MR�VIWTIGX�SJ�XIQTSVEV]�HMJJIVIRGIW�EVMWMRK�JVSQ�HMJJIVIRGIW�FIX[IIR�XLI�GEVV]MRK�EQSYRX�SJ�EWWIXW�ERH�PMEFMPMXMIW�MR�XLI�½RERGMEP�WXEXIQIRXW�ERH�GSVVIWTSRHMRK�XE\�FEWMW�YWIH�JSV�GSQTYXEXMSR�SJ�XE\EFPI�TVS½X� (IJIVVIH�XE\�PMEFMPMXMIW�EVI�KIRIVEPP]�VIGSKRMWIH�JSV�EPP�XE\EFPI�XIQTSVEV]�HMJJIVIRGIW�ERH�HIJIVVIH�XE\�EWWIXW�EVI�VIGSKRMWIH�XS�XLI�I\XIRX�XLEX�MX�MW�TVSFEFPI�XLEX�XE\EFPI�TVS½XW�[MPP�FI�EZEMPEFPI�EKEMRWX�[LMGL�HIHYGXMFPI�XIQTSVEV]�HMJJIVIRGIW�GER�FI�YXMPMWIH� (IJIVVIH�XE\�MW�GEPGYPEXIH�EX�XLI�VEXIW�XLEX�EVI�I\TIGXIH�XS�ETTP]�[LIR�XLI�EWWIX�MW�VIEPMWIH�SV�XLI�PMEFMPMX]�WIXXPIH��(IJIVVIH�XE\�MW�GLEVKIH�SV�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI��(IJIVVIH�XE\�EWWIXW�ERH�PMEFMPMXMIW�EVI�SJJWIX�[LIR�XLIVI�MW�E�PIKEPP]�IRJSVGIEFPI�VMKLX�XS�WIX�SJJ�GYVVIRX�tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and liabilities on a net basis.

8LI�GEVV]MRK�EQSYRX�SJ�HIJIVVIH�XE\�EWWIXW�MW�VIZMI[IH�EX�IEGL�WXEXIQIRX�SJ�½RERGMEP�TSWMXMSR�HEXI�ERH�VIHYGIH�XS�XLI�I\XIRX�XLEX�MX�MW�RS�PSRKIV�TVSFEFPI�XLEX�WYJ½GMIRX�XE\EFPI�TVS½X�[MPP�FI�EZEMPEFPI�XS�EPPS[�EPP�SV�E�TEVX�SJ�XLI�EWWIX�XS�FI�VIGSZIVIH�

*SV�XLI�TYVTSWIW�SJ�QIEWYVMRK�HIJIVVIH�XE\�PMEFMPMXMIW�ERH�HIJIVVIH�XE\�EWWIXW�JSV�MRZIWXQIRX�TVSTIVXMIW�XLEX�EVI�QIEWYVIH�YWMRK�XLI�JEMV�ZEPYI�QSHIP�YRHIV�-%7����-RZIWXQIRX�4VSTIVX]��XLI�GEVV]MRK�EQSYRXW�SJ�WYGL�TVSTIVXMIW�EVI�TVIWYQIH�XS�FI�VIGSZIVIH�XLVSYKL�WEPI��YRPIWW�XLI�TVIWYQTXMSR�MW�VIFYXXIH��8LI�TVIWYQTXMSR�MW�VIFYXXIH�[LIR�XLI�MRZIWXQIRX�TVSTIVX]�MW�HITVIGMEFPI�ERH�MW�LIPH�[MXLMR�E�FYWMRIWW�QSHIP�SJ�XLI�+VSYT�[LSWI�FYWMRIWW�SFNIGXMZI�MW�XS�GSRWYQI�WYFWXERXMEPP]�EPP�SJ�XLI�IGSRSQMG�FIRI½XW�IQFSHMIH�MR�XLI�MRZIWXQIRX�TVSTIVX]�SZIV�XMQI��VEXLIV�XLER�XLVSYKL�WEPI��-J�XLI�TVIWYQTXMSR�MW�VIFYXXIH��HIJIVVIH�XE\�PMEFMPMXMIW�ERH�HIJIVVIH�XE\�EWWIXW�JSV�WYGL�MRZIWXQIRX�TVSTIVXMIW�EVI�QIEWYVIH�MR�EGGSVHERGI�[MXL�XLI�EFSZI�general principles set out in IAS 12 Income Taxes (i.e. based on the expected manner as to how the properties will be recovered).

'YVVIRX�ERH�HIJIVVIH�XE\�JSV�XLI�]IEV'YVVIRX�ERH�HIJIVVIH�XE\�EVI�VIGSKRMWIH�MR�TVS½X�SV�PSWW��I\GITX�[LIR�XLI]�VIPEXI�XS�MXIQW�XLEX�EVI�VIGSKRMWIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�SV�HMVIGXP]�MR�IUYMX]��MR�[LMGL�GEWI��XLI�GYVVIRX�ERH�HIJIVVIH�XE\�EVI�EPWS�VIGSKRMWIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�SV�HMVIGXP]�MR�IUYMX]�VIWTIGXMZIP]��;LIVI�GYVVIRX�XE\�EVMWIW�JVSQ�XLI�MRMXMEP�EGGSYRXMRK�JSV�E�FYWMRIWW�GSQFMREXMSR��XLI�XE\�IJJIGX�MW�MRGPYHIH�MR�XLI�EGGSYRXMRK�JSV�FYWMRIWW�GSQFMREXMSR�

Foreign currency*SVIMKR� GYVVIRG]� XVERWEGXMSRW� EVI� EGGSYRXIH� JSV� EX� I\GLERKI� VEXIW�TVIZEMPMRK� EX� XLI�HEXI�SJ� XLI� XVERWEGXMSR��+EMRW� ERH� PSWWIW� VIWYPXMRK� JVSQ� XLI�WIXXPIQIRX�SJ�WYGL�XVERWEGXMSRW�EVI�VIGSKRMWIH�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�

1SRIXEV]�EWWIXW�ERH�PMEFMPMXMIW�HIRSQMREXIH�MR�JSVIMKR�GYVVIRG]�EVI�VIXVERWPEXIH�EX�XLI�VEXIW�VYPMRK�SR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�HEXI��+EMRW�ERH�PSWWIW�EVMWMRK�SR�VIXVERWPEXMSR�EVI�HIEPX�[MXL�MR�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI�

3R�GSRWSPMHEXMSR��XLI�EWWIXW�ERH�PMEFMPMXMIW�SJ�XLI�+VSYT´W�STIVEXMSRW�EVI��XVERWPEXIH�EX�XLI�I\GLERKI�VEXI�TVIZEMPMRK�EX�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�HEXI��-RGSQI�ERH�I\TIRWI�MXIQW�EVI�XVERWPEXIH�EX�XLI�EZIVEKI�I\GLERKI�VEXIW�JSV�XLI�TIVMSH�YRPIWW�I\GLERKI�VEXIW�¾YGXYEXI�WMKRM½GERXP]�HYVMRK�XLEX�TIVMSH��MR�[LMGL�GEWI�XLI�I\GLERKI�VEXIW�EX�XLI�HEXI�SJ�XLI�XVERWEGXMSRW�EVI�YWIH��)\GLERKI�HMJJIVIRGIW�EVMWMRK��MJ�ER]��EVI�GPEWWM½IH�EW�IUYMX]�ERH�XVERWJIVVIH�XS�XLI�KVSYT´W�JSVIMKR�GYVVIRG]�XVERWPEXMSR�VIWIVZI��7YGL�XVERWPEXMSR�EVI�VIGSKRMWIH�MR�XLI�KVSYT�WXEXIQIRX�SJ�GSQTVILIRWMZI�MRGSQI�MR�XLI�TIVMSH�MR�[LMGL�XLI�STIVEXMSR�MW�HMWTSWIH�SJ�

%RUURZLQJ�FRVWV&SVVS[MRK�GSWXW�HMVIGXP]�EXXVMFYXEFPI�XS�XLI�EGUYMWMXMSR�SV�GSRWXVYGXMSR�SJ�UYEPMJ]MRK�EWWIXW��[LMGL�EVI�EWWIXW�XLEX�RIGIWWEVMP]�XEOI�E�WYFWXERXMEP�TIVMSH�SJ�XMQI�XS�KIX�VIEH]�JSV�XLIMV�MRXIRHIH�YWI�SV�WEPI��EVI�GETMXEPMWIH�EW�TEVX�SJ�XLI�GSWX�SJ�XLEX�EWWIX�YRXMP�WYGL�XMQI�EW�XLI�EWWIXW�EVI�WYFWXERXMEPP]�VIEH]�JSV�XLIMV�MRXIRHIH�YWI�SV�WEPI��-RZIWXQIRX�MRGSQI�IEVRIH�SR�XLI�XIQTSVEV]�MRZIWXQIRX�SJ�WTIGM½G�FSVVS[MRKW�TIRHMRK�XLIMV�I\TIRHMXYVI�SR�UYEPMJ]MRK�EWWIXW�MW�HIHYGXIH�JVSQ�XLI�FSVVS[MRKW�GSWXW�IPMKMFPI�JSV�GETMXEPMWEXMSR�

Other borrowing costs are recognised as an expense in the period in which they are incurred. Leasing0IEWIW�EVI�GPEWWM½IH�EW�½RERGI�PIEWIW�[LIRIZIV�XLI�XIVQW�SJ�XLI�PIEWI�XVERWJIV�WYFWXERXMEPP]�EPP�XLI�VMWOW�ERH�VI[EVHW�SJ�S[RIVWLMT�XS�XLI�PIWWII��%PP�SXLIV�PIEWIW�EVI�GPEWWM½IH�EW�STIVEXMRK�PIEWIW�� The group as lessor %QSYRXW�HYI�JVSQ�PIWWIIW�YRHIV�½RERGI�PIEWIW�EVI�VIGSVHIH�EW�VIGIMZEFPIW�EX�XLI�EQSYRX�SJ�XLI�+VSYT´W�RIX�MRZIWXQIRX�MR�XLI�PIEWIW��*MRERGI�PIEWI�MRGSQI�MW�EPPSGEXIH�XS�EGGSYRXMRK�TIVMSHW�WS�EW�XS�VI¾IGX�E�GSRWXERX�TIVMSHMG�VEXI�SJ�VIXYVR�SR�XLI�GSQTER]´W�RIX�MRZIWXQIRX�SYXWXERHMRK�MR�VIWTIGX�SJ�XLI�PIEWIW��

6IRXEP�MRGSQI�JVSQ�STIVEXMRK�PIEWIW�MW�VIGSKRMWIH�SR�E�WXVEMKLX�PMRI�FEWMW�SZIV�XLI�XIVQ�SJ�XLI�VIPIZERX�PIEWI��-RMXMEP�HMVIGX�GSWXW�MRGYVVIH�MR�RIKSXMEXMRK�ERH�EVVERKMRK�ER�STIVEXMRK�PIEWI�EVI�EHHIH�XS�XLI�GEVV]MRK�EQSYRX�SJ�XLI�PIEWIH�EWWIX�ERH�VIGSKRMWIH�SR�E�WXVEMKLX�PMRI�FEWMW�SZIV�XLI�PIEWI�XIVQ��

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW�Cont. 31 December 2016

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39

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Leasing (Continued)The group as lessee %WWIXW�LIPH�YRHIV�½RERGI�PIEWIW�EVI�MRMXMEPP]�VIGSKRMWIH�EW�EWWIXW�SJ�XLI�KVSYT�ERH�XLI�GSQTER]�EX�XLIMV�JEMV�ZEPYI�EX�XLI�MRGITXMSR�SJ�XLI�PIEWI�SV��MJ�PS[IV��EX�XLI�TVIWIRX�ZEPYI�SJ�XLI�QMRMQYQ�PIEWI�TE]QIRXW��8LI�GSVVIWTSRHMRK�PMEFMPMX]�XS�XLI�PIWWSV�MW�MRGPYHIH�MR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR�EW�E�½RERGI�PIEWI�SFPMKEXMSR��

0IEWI�TE]QIRXW�EVI�ETTSVXMSRIH�FIX[IIR�½RERGI�GLEVKIW�ERH�VIHYGXMSR�SJ�XLI�PIEWI�SFPMKEXMSR�WS�EW�XS�EGLMIZI�E�GSRWXERX�VEXI�SJ�MRXIVIWX�SR�XLI�VIQEMRMRK�FEPERGI�SJ�XLI�PMEFMPMX]��*MRERGI�GLEVKIW�EVI�GLEVKIH�HMVIGXP]�XS�XLI�WXEXIQIRXW�SJ�GSQTVILIRWMZI�MRGSQI��'SRXMRKIRX�VIRXEPW�EVI�VIGSKRMWIH�as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more VITVIWIRXEXMZI�SJ�XLI�XMQI�TEXXIVR�MR�[LMGL�IGSRSQMG�FIRI½XW�JVSQ�XLI�PIEWIH�EWWIX�EVI�GSRWYQIH��'SRXMRKIRX�VIRXEPW�EVMWMRK�YRHIV�STIVEXMRK�PIEWIW�are recognised as an expense in the period in which they are incurred. -R�XLI�IZIRX�XLEX� PIEWI�MRGIRXMZIW�EVI�VIGIMZIH�XS�IRXIV� MRXS�STIVEXMRK�PIEWIW��WYGL�MRGIRXMZIW�EVI�VIGSKRMWIH�EW�E� PMEFMPMX]��8LI�EKKVIKEXI�FIRI½X�SJ�MRGIRXMZIW�MW�VIGSKRMWIH�EW�E�VIHYGXMSR�SJ�VIRXEP�I\TIRWI�SR�E�WXVEMKLX�PMRI�FEWMW��I\GITX�[LIVI�ERSXLIV�W]WXIQEXMG�FEWMW�MW�QSVI�VITVIWIRXEXMZI�SJ�XLI�XMQI�TEXXIVR�MR�[LMGL�IGSRSQMG�FIRI½XW�JVSQ�XLI�PIEWIH�EWWIX�EVI�GSRWYQIH��

1RQ�&XUUHQW�DVVHWV�KHOG�IRU�VDOH2SR�GYVVIRX�EWWIXW�ERH�HMWTSWEP�KVSYTW�EVI�GPEWWM½IH�EW�LIPH�JSV�WEPI�MJ�XLIMV�GEVV]MRK�EQSYRX�[MPP�FI�VIGSZIVIH�TVMRGMTEPP]�XLVSYKL�E�WEPI�XVERWEGXMSR�VEXLIV�XLER�XLVSYKL�GSRXMRYMRK�YWI��8LMW�GSRHMXMSR�MW�VIKEVHIH�EW�QIX�[LIR�XLI�JSPPS[MRK�GVMXIVME�EVI�QIX�-management is committed to a plan to sell�XLI�EWWIX�MW�EZEMPEFPI�JSV�MQQIHMEXI�WEPI�XLI�WEPI�MW�LMKLP]�TVSFEFPI��[MXLMR����QSRXLW�SJ�GPEWWM½GEXMSR�EW�LIPH�JSV�WEPI��WYFNIGX�XS�PMQMXIH�I\GITXMSRW �XLI�EWWIX�MW�FIMRK�EGXMZIP]�QEVOIXIH�JSV�WEPI�EX�E�WEPIW�TVMGI�VIEWSREFPI�MR�VIPEXMSR�XS�MXW�JEMV�ZEPYI�EGXMSRW�VIUYMVIH�XS�GSQTPIXI�XLI�TPER�MRHMGEXI�XLEX�MX�MW�YRPMOIP]�XLEX�TPER�[MPP�FI�WMKRM½GERXP]�GLERKIH�SV�[MXLHVE[R�

;LIR�XLI�+VSYT�MW�GSQQMXXIH�XS�E�WEPI�TPER�MRZSPZMRK�PSWW�SJ�GSRXVSP�SJ�E�WYFWMHMEV]��EPP�SJ�XLI�EWWIXW�ERH�PMEFMPMXMIW�SJ�XLEX�WYFWMHMEV]�EVI�GPEWWM½IH�EW�LIPH�JSV�WEPI�[LIR�XLI�GVMXIVME�HIWGVMFIH�EFSZI�EVI�QIX��VIKEVHPIWW�SJ�[LIXLIV�XLI�KVSYT�[MPP�VIXEMR�E�RSR�GSRXVSPPMRK�MRXIVIWX�MR�MXW�JSVQIV�WYFWMHMEV]�EJXIV�WEPI�

Critical accounting judgements and key sources of estimation uncertainty-R�XLI�ETTPMGEXMSR�SJ�XLI�+VSYT´W�EGGSYRXMRK�TSPMGMIW�QEREKIQIRX� MW�VIUYMVIH�XS�QEOI�NYHKIQIRXW��IWXMQEXIW�ERH�EWWYQTXMSRW�EFSYX�XLI�GEVV]MRK�EQSYRXW�SJ�EWWIXW�ERH�PMEFMPMXMIW�XLEX�EVI�RSX�VIEHMP]�ETTEVIRX�JVSQ�SXLIV�WSYVGIW��8LI�IWXMQEXIW�ERH�EWWSGMEXIH�EWWYQTXMSRW�EVI�FEWIH�SR�LMWXSVMGEP�I\TIVMIRGI� ERH� SXLIV� JEGXSVW� XLEX� EVI� GSRWMHIVIH� XS� FI� VIPIZERX��%GXYEP� VIWYPXW�QE]� HMJJIV� JVSQ� XLIWI� IWXMQEXIW��8LI� IWXMQEXIW� ERH� YRHIVP]MRK�EWWYQTXMSRW�EVI�VIZMI[IH�SR�ER�SRKSMRK�FEWMW��6IZMWMSRW�XS�EGGSYRXMRK�IWXMQEXIW�EVI�VIGSKRMWIH�MR�XLI�TIVMSH�MR�[LMGL�XLI�IWXMQEXI�MW�VIZMWIH�MJ�XLI�VIZMWMSR�EJJIGXW�SRP]�XLEX�TIVMSH�SV�MR�XLI�TIVMSH�SJ�XLI�VIZMWMSR�ERH�JYXYVI�TIVMSHW�MJ�XLI�VIZMWMSR�EJJIGXW�FSXL�GYVVIRX�ERH�JYXYVI�TIVMSHW� 8LI�JSPPS[MRK�EVI�XLI�OI]�EWWYQTXMSRW�GSRGIVRMRK�XLI�JYXYVI�ERH�SXLIV�WSYVGIW�SJ�IWXMQEXMSR�YRGIVXEMRX]�EX�XLI�VITSVXMRK�HEXI��XLEX�LEZI�E�WMKRM½GERX�VMWO�SJ�GEYWMRK�E�QEXIVMEP�EHNYWXQIRX�XS�XLI�GEVV]MRK�EQSYRXW�[MXLMR�XLI�RI\X�½RERGMEP�]IEV�

Fair value of investment properties8LI�HMVIGXSVW�YWI�XLIMV�NYHKIQIRX�MR�WIPIGXMRK�ER�ETTVSTVMEXI�ZEPYEXMSR�XIGLRMUYI�JSV�XLI�MRZIWXQIRX�TVSTIVXMIW��-RZIWXQIRX�TVSTIVXMIW�EVI�ZEPYIH�using a direct capitalisation method based on assumptions supported, where possible, by observable market prices.

Deferred taxation on investment properties*SV� XLI� �TYVTSWIW�SJ�QIEWYVMRK�HIJIVVIH� XE\� PMEFMPMXMIW�SV�HIJIVVIH� XE\�EWWIXW� JVSQ� MRZIWXQIRX�TVSTIVXMIW� XLEX�EVI�QIEWYVIH�YWMRK� XLI� JEMV�ZEPYI�QSHIP�MR�-%7����-RZIWXQIRX�4VSTIVXMIW��XLI�HMVIGXSVW�LEZI�VIZMI[IH�XLEX�XLI�+VSYT´W�MRZIWXQIRX�TVSTIVX]�TSVXJSPMS�ERH�GSRGPYHIH�XLEX�XLI�+VSYT´W�MRZIWXQIRX�TVSTIVXMIW�EVI�RSX�LIPH�YRHIV�E�FYWMRIWW�QSHIP�[LSWI�SFNIGXMZI�MW�XS�GSRWYQI�WYFWXERXMEPP]�EPP�XLI�IGSRSQMG�FIRI½XW�IQFSHMIH�MR�XLI�MRZIWXQIRX�TVSTIVXMIW�SZIV�XMQI��VEXLIV�XLER�XLVSYKL�WEPI��8LIVIJSVI�� MR�HIXIVQMRMRK�XLI�+VSYT´W�HIJIVVIH�XE\EXMSR�SR�MRZIWXQIRX�TVSTIVXMIW��XLI�HMVIGXSVW�LEZI�HIXIVQMRIH�XLEX�XLI�TVIWYQTXMSR�WIX�SYX�MR�-%7����-RGSQI�8E\IW��XLEX�MRZIWXQIRX�TVSTIVXMIW�QIEWYVIH�YWMRK�XLI�JEMV�ZEPYI�QSHIP�EVI�recovered through sale is not rebutted.

Impairment of investments and assets8LI�HMVIGXSVW�LEZI�VIZMI[IH�XLI�MRZIWXQIRXW�ERH�EWWIXW�ERH�GSRWMHIVIH�MJ�ER]��MQTEMVQIRX�MW�RIGIWWEV]�FEWIH�SR�VIZMI[�SJ�RIX�EWWIX�ZEPYI��GYVVIRX�QEVOIX�ZEPYI�ERH�HMWGSYRXIH�GEWL�¾S[W�

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW Cont. 31 December 2016

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Critical Accounting Judgements and key sources of estimation uncertinity (Continued)Provision for doubtful debt8LI�+VSYT� ERH� 'SQTER]� TVSZMHIW�� EW� HSYFXJYP� HIFX�� JSV� TEWX� HYI� ERH� MQTEMVIH� XVEHI� VIGIMZEFPIW� FEWIH� SR� IWXMQEXIH� MVVIGSZIVEFPI� EQSYRXW�HIXIVQMRIH�F]�VIJIVIRGI�XS�TEWX�XVEGO�VIGSVHW�ERH�TSWWMFMPMXMIW�SJ�VIGSZIV]�MR�JYXYVI��Useful lives and residual values of property, plant and equipment8LI�+VSYT�ERH�'SQTER]�VIZMI[W�XLI�IWXMQEXIH�YWIJYP�PMZIW�ERH��VIWMHYEP�ZEPYIW�SJ�TVSTIVX]��TPERX�ERH�IUYMTQIRX�EX�XLI�IRH�SJ�IEGL�ERRYEP�VITSVXMRK�period.

Recoverability of intangible asset8LI�+VSYT�ERH�'SQTER]�EGUYMVIH�ER�MRHI½RMXI�PMGIRWI�XS�FYMPH�ERH�STIVEXI�E�LSXIP�MR�XLI�'IRXVEP�&YWMRIWW�(MWXVMGX�MR�+EFSVSRI��&SXW[ERE��8LI�HMVIGXSVW�LEZI�VIZMI[IH�XLI�MRXERKMFPI�EWWIX�JSV�MQTEMVQIRX�ERH�LEZI�GSRGPYHIH�XLEX�XLI�EWWIX�MW�RSX�MQTEMVIH��

Related party transactions6IPEXIH�TEVXMIW�EVI�HI½RIH�EW�XLSWI�TEVXMIW�XLEX��(a) directly, or indirectly through one or more intermediaries:

�M �GSRXVSP��EVI�GSRXVSPPIH�F]��SV�EVI�YRHIV�GSQQSR�GSRXVSP�[MXL��XLI�IRXMX]��XLMW�MRGPYHIW�TEVIRXW��WYFWMHMEVMIW�ERH�JIPPS[�WYFWMHMEVMIW ������������MM �LEZI�ER�MRXIVIWX�MR�XLI�IRXMX]�XLEX�KMZIW�XLIQ�WMKRM½GERX�MR¾YIRGI�SZIV�XLI�IRXMX]��SV�

�F �EVI�QIQFIVW�SJ�XLI�OI]�QEREKIQIRX�TIVWSRRIP�SJ�XLI�IRXMX]�SV�MXW�TEVIRX�MRGPYHMRK�GPSWI�QIQFIVW�SJ�XLI�JEQMP]��

%PP�HIEPMRKW�[MXL�VIPEXIH�TEVXMIW�EVI�XVERWEGXIH�SR�ER�EVQ´W�PIRKXL�FEWMW�ERH�EGGSVHMRKP]�MRGPYHIH�MR�XSXEP�GSQTVILIRWMZI�MRGSQI�JSV�XLI�]IEV��

7MKRM½GERX�%GGSYRXMRK�4SPMGMIW�Cont. 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

Group Company

2016 2015 2016 2015 P’000 P’000 P’000 P’000 1. Contractual lease rental revenue Revenue comprises rental income and service charges �� VIGSZIVIH�JVSQ�XIRERXW��� � � �� �� �� � Rental income 79 656 75 093 43 618 40 437 Service charges recovered 8 870 8 198 2 252 1 719 88 526 83 291 45 870 42 156 ���3UR¼W�IURP�RSHUDWLRQV � �4VS½X�JVSQ�STIVEXMSRW�MW�WXEXIH�EJXIV�XEOMRK�MRXS�EGGSYRX�XLI�JSPPS[MRK��� � �� �� �� � � � �%YHMXSV´W�VIQYRIVEXMSR��� ��EYHMX�JII�� ����� ����� ����� ����� - other services 34 199 14 165 Depreciation 796 119 30 3 � �(MVIGXSVW �IQSPYQIRXW��RSXI��� �� ��JSV�WIVZMGIW�EW�HMVIGXSVW�� ����� ����� ����� ������ �1EREKIQIRX�ERH�EHQMRMWXVEXMSR�JII�TEMH�XS��� � �� �� �� � � related company (note 21) 5 460 4 948 2 920 2 738 � �0IEWI�VIRI[EP�JIIW�TEMH�XS�VIPEXIH�GSQTER]��RSXI��� �� ����� ����� ����� ������ �1SZIQIRX�MR�TVSZMWMSR�JSV�HSYFXJYP�HIFX��RSXI��� �� ����� ������ � ����� ������ � Repairs and maintenance on investment properties 2 365 1 822 1 470 1 079 Bonus and rights issue expenses - 3 116 - 3 116 Service charges paid to related company (note 21) 4 530 2 795 4 530 2 795 Foreign exchange (gain)/losses - related to a loan and receivable � � ��JVSQ�E�NSMRX�ZIRXYVI�� ����� ��� ��� ���� - other ( 240 ) 52 21 95 ( 115 ) 52 21 95 3. Investment income Interest income: - bank 8 120 43 8,096 35 - money market 2 269 424 2,269 424 - on overdue accounts 295 1 226 89 73 - on non-current trade receivables 236 - - 2 - related parties and intercompany (note 21) 819 74 1,147 569 11 739 1 767 11 601 1 103 Dividends received 436 - 4 627 882 12 175 1 767 16 228 1 985 4. Finance costs Interest payable - bank 223 693 - 506 - related parties (note 21) 9 127 - - - long term borrowings 17 309 18 068 8 582 8 328 17 541 18 888 8 582 8 834

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW 31 December 2016

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Group Company

2016 2015 2016 2015 P’000 P’000 P’000 P’000 5. Income tax expense Normal taxation -capital allowances claimed to date 361 311 - - -prior year over provision - (428 ) - - 361 (117 ) - - Total normal taxation - - � �(IJIVVIH�XE\EXMSR��� ��GYVVIRX�]IEV��I\GPYHMRK�GETMXEP�KEMRW�XE\ �� ������� ������� ������� ���� � � ��GETMXEP�KEMRW�HIJIVVIH�XE\�� �������� �������� �������� ������ -prior year under provision - 24 - - 20,184 21,636 13,685 8,395 Income tax expense comprises: � �'LEVKIH�XS�WXEXIQIRX�SJ�GSQTVILIRWMZI�MRGSQI�� �������� �������� �������� �������� �%XXVMFYXEFPI�XS�HIFIRXYVI�MRXIVIWX�GVIHMXIH�XS�WXEXIQIRX�SJ�GLERKIW�MR�IUYMX]�� ������� � ������� � ������� � ������� 20,184 21,636 13,685 8,395 � �8LI�GLEVKI�JSV�XLI�]IEV�GER�FI�VIGSRGMPIH�XS�XLI�TVS½X�TIV�� �� �� ��� �MRGSQI�WXEXIQIRX�EW�JSPPS[W��� � �� �� �� �� % % % % Tax reconciliation: Tax at current rate 22.00 22.00 22.00 22.00 Taxation on debenture interest (0.10 ) (0.04 ) (0.16 ) (0.09 ) Prior year under/(over) provision - (0.32 ) - - � �*EMV�ZEPYI�EHNYWXQIRX�SR�MRZIWXQIRX�TVSTIVXMIW��RIX�SJ�HIJIVVIH�GETMXEP�KEMRW�XE\�� ������ � ������ � ������ � ������ � �7LEVI�SJ�TVS½X�JVSQ�NSMRX�ZIRXYVI�� � ����� ������ � ����� ����� �)JJIGX�SJ�XE\�VEXI�HMJJIVIRXMEP�MR�WYFWMHMEV]�� ������ ������ ����� ���� Non-taxable income - dividends (0.63 ) 0.21 (1.00 ) (0.31 )� �)JJIGX�SJ�XE\�VEXI�HMJJIVIRXMEPW�� � ������ ������ ������ ����� 17.09 20.56 18.87 20.75 Leasehold Furniture & 6. Property, plant and equipment buildings equipment Aircraft Total P’000 P’000 P’000 P’000 Group Cost � �%X���.ERYEV]������� � ������� ����� ��� ������ Additions during the year - 27 - 27 � �8VERWJIV�XS�MRZIWXQIRX�TVSTIVX]�HYVMRK�XLI�]IEV�� ���� ����� � ���� ����� At 31 December 2015 2 248 265 - 2 513 Additions during the year - 17 2 575 2 592 � �8VERWJIV�JVSQ�MRZIWXQIRX�TVSTIVX]�HYVMRK�XLI�]IEV�� ��� ������� ���� ������� As at 31 December 2016 2 248 7 508 2 575 12 331 Accumulated depreciation � �%X���.ERYEV]������� � ������� ����� ��� ������� �'LEVKI�JSV�XLI�]IEV�� � ����� ��� ���� ���� At 31 December 2015 1 156 211 - 1 367 � �'LEVKI�JSV�XLI�]IEV�� � ����� ����� ���� ����� As at 31 December 2016 1 267 872 24 2 163 Net book value at 31 December 2016 981 6 636 2 551 10 168 Net book value at 31 December 2015 1 092 54 - 1 146

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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43

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

6. Property, plant and equipment (continued) /HDVHKROG�EXLOGLQJV�FRPSULVH�WKH�IROORZLQJ�� �%�FEWIQIRX�TEVOMRK�JEGMPMX]�EX�TSVXMSR�SJ�0SXW�����������ERH������MR�1EMR�1EPP��EVIE�MR�+EFSVSRI��&SXW[ERE��GSRWXVYGXIH�SR�E�TPSX�SJ�PERH��PIEWIH�JVSQ�+EFSVSRI�'MX]�'SYRGMP�JSV�E�TIVMSH�SJ����]IEVW��� � �� �� �� Transfer from investment property -R�XLI�TVMSV�]IEV��XLI�+VSYT�MRGYVVIH�WSQI�GETMXEP�I\TIRHMXYVI�EX�SRI�SJ�MXW�TVSTIVXMIW�ERH�XLIWI�[IVI�GETMXEPMWIH�EW�[SVO�MR�TVSKVIWW��� �� �3R�GSQTPIXMSR�SJ�XLI�[SVO�MR�XLI�GYVVIRX�]IEV��XLI�GSWXW�[IVI�XLIR�EREP]WIH�ERH�WTPMX�FIX[IIR�JYVRMXYVI�ERH�IUYMTQIRX�ERH�MRZIWXQIRX�TVSTIVXMIW����8LI�XVERWJIV�JVSQ�MRZIWXQIRX�TVSTIVX]�EFSZI�VITVIWIRXW�XLI�VIEPPSGEXMSR�SJ�XLIWI�GSWXW�XS�JYVRMXYVI�ERH�IUYMTQIRX�

Furniture & equipment Aircraft Total Company P’000 P’000 P’000 Cost � %X���.ERYEV]������� �� ����� ����� ����� Additions during the year 6 - 6 � 8VERWJIV�XS�MRZIWXQIRX�TVSTIVX]�HYVMRK�XLI�]IEV�� ����� � ����� ���� � At 31 December 2015 199 - 199 Additions during the year 3 2,575 2,578 At 31 December 2016 202 2,575 2,777 - Accumulated depreciation - � %X���.ERYEV]������� �� ����� ����� ������ 'LEVKI�JSV�XLI�]IEV�� � ��� ����� ��� At 31 December 2015 193 - 193 � 'LEVKI�JSV�XLI�]IEV�� �� ��� ���� ���� At 31 December 2016 199 24 223 - Net book value at 31 December 2016 3 2,551 2,554 - Net book value at 31 December 2015 6 - 6 Group Company 7. Investments Country of Share 2016 2015 2016 2015 incorporation Holding P’000 P’000 P’000 P’000 At cost: (TXLW\�LQYHVWPHQWV���6XEVLGLDULHV RDC Properties International (Proprietary) Limited Botswana 100% - - 1 588 1 588 Lotsane Complex (Proprietary) Limited Botswana 76.67% - - 1 692 1 692 Three Partners Resorts Limited Botswana 53.75% - - 82 281 82 281 - - 85 561 85 561 /RQJ�WHUP�ORDQV���,QYHVWPHQWV�WKURXJK�5'&�3URSHUWLHV�,QWHUQDWLRQDO��3W\��/LPLWHG � ,17��7SGMqXq�%RSR]QI��,17� �� �1EHEKEWGEV�� ��� ��� ���� �������� ������� - - 28 601 28 601 Joint Operation Propcorp (Proprietary) Limited Botswana 33% - 2 187 2 187 - - 2 187 2 187 - - 116 349 116 349

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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44

7. InvestmentsRDC Properties International (Proprietary) Limited is an International Financial Services Centre (IFSC) company registered in Botswana.-X�LEW�XLI�JSPPS[MRK�WYFWMHMEVMIW������LIPH��YRPIWW�WTIGM½IH�SXLIV[MWI ��6('�4VSTIVXMIW�7SYXL�%JVMGE��4VSTVMIXEV] �0MQMXIH��E�GSQTER]�VIKMWXIVH�MR�7SYXL�%JVMGE���6('�4VSTIVXMIW�2EQMFME��4VSTVMIXEV] �0MQMXIH��E�GSQTER]�VIKMWXIVIH�MR�2EQMFME��[LMGL�MR�XYVR�S[RW�������SJ�6('�4VSTIVXMIW�(IZIPSTQIRX�2EQMFME(Proprietary) Limited, a company registered in Namibia.6('�4VSTIVXMIW�-RXIVREXMSREP��4VSTVMIXEV] �0MQMXIH�EPWS�S[RW����SJ�,17��7SGMqXq�%RSR]QI��,17� �VIKMWXIVIH�MR�1EHEKEWGEV���8LI�MRZIWXQIRX�SJ�,17��MW�VIGSKRMWIH�EW�E�NSMRX�ZIRXYVI��8LI�PSRK�XIVQ�PSER�XS�,17��7SGMqXq�%RSR]QI��,17� �LEW�RS�½\IH�XIVQW�SJ�VITE]QIRX�ERH�MW�MRXIVIWX�JVII�

0SXWERI�'SQTPI\��4VSTVMIXEV] �0MQMXIH�MW�E�GSQTER]�VIKMWXIVIH�MR�&SXW[ERE�[LMGL�S[RW�0SX������WMXYEXIH�MR�4EPET]I��0SX������MW�GPEWWM½IH�EW�MRZIWXQIRX�property.

Three Partners Resorts Limited is a company registered in Botswana and owns Lot 54353 situated in Gaborone at the central business district (CBD)is GPEWWM½IH�EW�MRZIWXQIRX�TVSTIVX]��

4VSTGSVT��4VSTVMIXEV] �0MQMXIH�MW�E�NSMRX�STIVEXMSR�FIX[IIR�6('�4VSTIVXMIW�0MQMXIH���&SXW[ERE�-RWYVERGI�*YRH�1EREKIQIRX�0MQMXIH��&-*1 �ERH�2EXMSREP�(IZIPSTQIRX�&ERO��2(& �JSV�XLI�HIZIPSTQIRX�SJ�XLI�FEWIQIRX�TEVOMRK��MR�XLI�EVIE�EHNSMRMRK�7XERHEVH�,SYWI��&-*1�,SYWI��ERH� 2(&� LSYWI� MR� XLI�Gaborone Main Mall area.

Joint operations 8LI�JSPPS[MRK�EQSYRXW�EVI�MRGPYHIH�MR�XLI�KVSYT�½RERGMEP�WXEXIQIRXW�EW�E�VIWYPX�SJ�XLI�TVSTSVXMSREXI�GSRWSPMHEXMSR�SJ�4VSTGSVT��4VSTVMIXEV] �0MQMXIH����

2016 2015 P’000 P’000 Non-current assets 1 003 1 092 Current assets 78 97 Current liabilities ( 89 ) ( 173 ) Income 80 80 Expenses ( 207 ) ( 227 )

Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000 8. Investment properties � �*VIILSPH�PERH�ERH�FYMPHMRKW�EX�JEMV�ZEPYI��� ���������� ���������� ���������� ���������� �0IEWILSPH�PERH�ERH�FYMPHMRKW�EX�JEMV�ZEPYI�� ���������� ���������� ���������� ��������� 1,181,753 1,085,286 619 803 558 279 � �7XVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� �������� � �������� � ������� � ������� 1,169,268 1,075,161 617 707 556 820 Reconciliation of fair value Opening value 1,075,161 925 485 556 820 463 622 At valuation 1,085,286 931 908 558 279 465 208 � �7XVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�� �������� � ������� � ������� � ������� Additions during the year 26,643 69 001 15 259 52 353 � �8VERWJIVW��XS �JVSQ�TVSTIVX]��TPERX�ERH�IUYMTQIRX�� ������� � ���� ���� ����� Disposals during the year (26 ) - - - � �8VERWJIV�XS�EWWIXW�LIPH�JSV�WEPI��2SXI��� �� �������� � ��� �������� � ��� �2IX�MRGVIEWI�MR�JEMV�ZEPYI�� ��������� ��������� ��������� ��������� �7XVEMKLX�PMRI�VIRXEP�EHNYWXQIRX�MRGPYHIH�MR�TVS½X�SV�PSWW�� ������� � ������� � ������ � ������ Closing balance 1,169,268 1,075,161 617 707 556 820

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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45

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

8. Investment properties (Continued) �-RZIWXQIRX�TVSTIVXMIW�EVI�VIZEPYIH�ERRYEPP]�F]�XLI�&SEVH�SJ�(MVIGXSVW�FEWIH�SR�E�(MVIGX�'ETMXEPMWEXMSR�QSHIP��)EGL�TVSTIVX]�MW�VIZEPYIH�� ���F]�MRHITIRHIRX�ZEPYIVW�EX�PIEWX�IZIV]�XLVII�]IEVW��*SV����(IGIQFIV�������0SXW������������������+EFSVSRI���8LSPS�3J½GI�4EVO ��ERH�0IEWI�� Area No. 4RO, Kasane (Chobe Marina Lodge) have been valued by Willy Kathurima Associates, independent valuers not related to the Group. �;MPP]�/EXLYVMQE�%WWSGMEXIW�EVI�VIKMWXIVIH�QIQFIVW�SJ�XLI�6IEP�)WXEXI�-RWXMXYXI�SJ�&SXW[ERE��6)-& �ERH�PMGIRGIH�F]�XLI�6IEP�)WXEXI�%HZMWSV�� ���'SYRGMP��6)%' ��8LI�JEMV�ZEPYI�HMWGPSWYVIW�VIPEXMRK�XS�XLI�MRZIWXQIRX�TVSTIVXMIW�EVI�HMWGPSWIH�MR�RSXI������ �� �� �� �8LI�MRZIWXQIRX�TVSTIVX]�HMWTSWEP�SJ�4�������VIPEXIW�XS�XLI�GETMXEP�WTIRH�XS�HEXI�SR�XLI�TVIZMSYWP]�ERRSYRGIH�EGUYMWMXMSR�SJ�E����WXEOI�MR�����&VEGGSFEPHS����4VSTVMIXEV] �0MQMXIH��±&6�² �F]�6('�4VSTIVXMIW�7SYXL�%JVMGE��4VSTVMIXEV] �0MQMXIH��JSV�XLI�HIZIPSTQIRX�SJ�E�PEVKI�LSXIP�MR���5YIIR�:MGXSVME�7XVIIX�MR�XLI�LIEVX�SJ�XLI�'ETI�8S[R�'&(��WYFNIGX�XS�VIKYPEXSV]�ETTVSZEP��8LI�VIUYMVIH�VIKYPEXSV]�ETTVSZEP�[EW�RSX�KVERXIH�FIJSVI�E�PSRK�WXST�HEXI�MR�XLI�WLEVILSPHIVW�EKVIIQIRX�8LI�'SQTER]�[EW�YREFPI�XS�GSRXMRYI�[MXL�XLI�EGUYMWMXMSR�ERH�XLI�TVSNIGX�[EW�EFERHSRIH��� �� �� �� � )UHHKROG�ODQG�DQG�EXLOGLQJV�FRPSULVH�WKH�IROORZLQJ� ��0SXW������XS�������)\XIRWMSR����+EFSVSRI��[LMGL�EVI�IRGYQFIVIH�F]�E�½VWX�GSZIVMRK�QSVXKEKI�FSRH�SJ�4�����������MR�JEZSYV�SJ�&-*1�'ETMXEP��-RZIWXQIRX�*YRH�3RI��4VSTVMIXEV] �0MQMXIH��ERH�E�WIGSRH�GSZIVMRK�QSVXKEKI�FSRH�SJ�4�����������MR�JEZSYV�SJ�&SXW[ERE�-RWYVERGI�*YRH�Management Limited (note 17). -Lot 21306 Phakalane, -Lots 1116, 1117 and 1840 Extension 3 Gaborone �0SX�����+EFSVSRI���0SX������������������ERH������+EFSVSRI��[LMGL�MW�IRGYQFIVIH�F]�E�½VWX��WIGSRH�ERH�XLMVH�GSZIVMRK�QSVXKEKI�FSRH�EQSYRXMRK�XS�4�����������MR�JEZSYV�SJ��*MVWX�2EXMSREP��&ERO�SJ�&SXW[ERE�0MQMXIH��RSXI��� ��%W�EX�]IEV�IRH��XLI�XVERWJIV�LEH�RSX�]IX�½REPMWIH�EX�XLI�(IIHW�SJ½GI���0SX������+EFSVSRI��[LMGL�MW�IRGYQFIVIH�F]�E�½VWX�GSZIVMRK�QSVXKEKI�FSRH�SJ�4�����������MR�JEZSYV�SJ�*MVWX�2EXMSREP�&ERO�SJ�&SXW[ERE�0MQMXIH��RSXI��� ��%W�EX�]IEV�IRH��XLI�XVERWJIV�LEH�RSX�]IX�½REPMWIH�EX�XLI�(IIHW�SJ½GI�� �� �� ��

/HDVHKROG�ODQG�DQG�EXLOGLQJV�FRPSULVH�WKH�IROORZLQJ���0SX��������'IRXVEP�&YWMRIWW�(MWXVMGX�[LMGL�MW�IRGYQFIVIH�F]�E�GSZIVMRK�QSVXKEKI�FSRH�MR�JEZSYV�SJ�&-*1�'ETMXEP�-RZIWXQIRX�*YRH�3RI��4VSTVMIXEV] �0MQMXIH�JSV�4�����������ERH�&EVGPE]W�&ERO�SJ�&SXW[ERE�0MQMXIH�JSV�4������������RSXI��� ���0SXW�������ERH��������+EFSVSRI��[LMGL�EVI�IRGYQFIVIH�F]�E��½VWX�GSZIVMRK�QSVXKEKI�FSRH�MR�JEZSYV�SJ�%JVMGER�&EROMRK�'SVTSVEXMSR�SJ�&SXW[ERE�0MQMXIH�JSV�4������������RSXI��� ���0SX������7IVS[I��[LMGL�MW�IRGYQFIVIH�F]�E�½VWX�QSVXKEKI�FSRH�MR�JEZSYV�SJ�&SXW[ERE�&YMPHMRK�7SGMIX]�JSV�4��������-Lot 679 Serowe, �0SX�����/EWERI�[LMGL�MW�IRGYQFIVIH�F]�E�QSVXKEKI�FSRH�MR�JEZSYV�SJ��*MVWX�2EXMSREP��&ERO�SJ�&SXW[ERE�0MQMXIH�JSV�4�����������RSXI��� �-Lot 208 Maun, -Lot 10211- 234-KO, Gaborone,�0SX������1EYR��[LMGL�MW�IRGYQFIVIH�F]�E�QSVXKEKI�FSRH�MR�JEZSYV�SJ�2EXMSREP�(IZIPSTQIRX�&ERO�JSV�4���������0SXW�����ERH������7IVS[I��[LMGL�EVI�IRGYQFIVIH�F]�E�QSVXKEKI�FSRH�MR�JEZSYV�SJ�2EXMSREP�(IZIPSTQIRX�&ERO�JSV�4�������������0SXW������������ERH�������.[ERIRK�-Lot 617, Molepolole,-Lots 50668 and 50669, Fairgrounds Gaborone,��0SXW�������[LMGL�MW�IRGYQFIVIH�F]�E�½VWX�QSVXKEKI�FSRH�MR�JEZSYV�SJ�*MVWX�2EXMSREP�&ERO�SJ�&SXW[ERE�0MQMXIH�JSV�4�����������RSXI��� ��-Lot 1707, Palapye.-Lease Area No. 4-AO, Kasane.

0RUWJDJHV�ZLWK�%DQNHUV��DJDLQVW�ZKLFK�QR�REOLJDWLRQ�H[LVWHG�DV�DW����'HFHPEHU�������1SVXKEKIW�SR�XLI�FIPS[�QIRXMSRIH��TVSTIVXMIW�[IVI�VIKMWXIVIH�EW�WIGYVMX]�JSV�PSERW�SZIV�XLI�]IEVW�%W�EX�XLI����(IGIQFIV�������XLI�PSERW�[IVI�JYPP]�VITEMH�ERH�XLIVIJSVI�XLI�JEGMPMXMIW�GSYPH�FI�GERGIPPIH��� �� �� ��

Value of mortgages Value of mortgages � � ZLWK�QR�OLDELOLW\��� �����������������ZLWK�QR�OLDELOLW\��� 2016 2015 Property P P Lot 443, Serowe 216 800 216 800 Lot 194, Maun 780 000 780 000 Lots 680 and 292, Serowe 2 460 000 2 460 000 3 456 800 3 456 800

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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��

Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000 9. Intangible asset � 0MGIRGI�EPPS[MRK�VMKLX�SJ�YWEKI�� ��������� �������� ���� ��� �8LI�+VSYT�EGUYMVIH�ER�MRHI½RMXI�PMGIRGI�XS�FYMPH�ERH�STIVEXI�E�LSXIP�MR�XLI�'IRXVEP�&YWMRIWW�District in Gaborone, Botswana. The license acquired does not expire nor does it get renewed periodically. 8LI�HMVIGXSVW�LEZI�HIXIVQMRIH�XLMW�XS�FI�ER�MRHM½RMXI�MRXERKMFPI�EWWIX�� The hotel was completed and started operations during 2012. The directors have reviewed the MRXERKMFPI�EWWIX�JSV�MQTEMVQIRX�ERH�LEZI�GSRGPYHIH�XLEX�XLI�EWWIX�MW�RSX�MQTEMVIH��� � �

10. Trade and other receivables Trade receivables 16 218 13 087 5 983 7 238 � �%PPS[ERGI�JSV�HSYFXJYP�HIFXW�� �������� � ������� � ������� � ������� 11 049 8 803 3 110 4 528 Value added tax - 543 - - Prepayment 387 365 262 179 Other receivables 886 4 272 527 586 Related parties: RDC Properties International (Proprietary) Limited - - 991 - Italtswana Construction Company (Proprietary) Limited 5 - 5 - Chobe Marina Lodge (Proprietary) Limited 2 920 2 307 2 920 2 307 Property and Asset Management Limited 154 158 - - Three Partners Resorts Limited - - 17 2 418 Yuagong (Proprietary) Limited 6 330 9 085 6 149 9 085 Natural Mystik (Proprietary) Limited 73 - - - � �6('�4VSTIVXMIW�7SYXL�%JVMGE��4VSTVMIXEV] �0MQMXIH�� ����� ���� �������� ������� 21 804 25 533 16 195 21 341 Short-term portion 19 752 17 336 14 143 13 144 Long-term portion 2 052 8 197 2 052 8 197 21 804 25 533 16 195 21 341

8LI�EZIVEKI�GVIHMX�TIVMSH�MW����HE]W�JSV�XVEHI�VIGIMZEFPIW��-RXIVIWX�[EW�GLEVKIH�SR�E�WIPIGXMZI�FEWMW�SR�SZIVHYI�XVEHI�VIGIMZEFPIW��VERKMRK�JVSQ���TIV�QSRXL�SR�WLSVX�XIVQ�VIGIMZEFPIW�ERH�TVMQI�TPYW���TIV�ERRYQ�JSV�PSRK�XIVQ�VIGIMZEFPIW ��8LI�(MVIGXSVW�LEZI�TVSZMHIH�JSV�EPP�TEWX�HYI�ERH�MQTEMVIH�XVEHI�VIGIMZEFPIW�FEWIH�SR�IWXMQEXIH�MVVIGSZIVEFPI�EQSYRXW�HIXIVQMRIH�F]�VIJIVIRGI�XS�TEWX�HIJEYPX�I\TIVMIRGI��-RGPYHIH�MR�XVEHI��VIGIMZEFPIW�EVI�EQSYRXW�TEWX�HYI�EX�XLI�VITSVXMRK�HEXI�JSV�[LMGL�RS�TVSZMWMSR�LEW�FIIR�QEHI�EW�XLI]�EVI�still considered recoverable. 8LI�HMVIGXSVW�FIPMIZI�XLEX�XLI�JEMV�ZEPYI�SJ�XVEHI�ERH�SXLIV�VIGIMZEFPIW�ETTVS\MQEXI�XLIMV�carrying amounts.

Group Company 2016 2015 2016 2015 Ageing of past due but not impaired 60 - 90 days 1 238 1 176 616 462 90 - 120 days 626 802 311 284 120+ days 3 553 - 1 352 - Total 5 417 1 978 2 279 746

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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47

RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

10. Trade and other receivables(Continued) Group Company 2016 2015 2016 2015

� 0RYHPHQW�LQ�WKH�DOORZDQFH�IRU�GRXEWIXO�GHEWV �� &EPERGI�EX�FIKMRRMRK�SJ�XLI�]IEV�� ��������� �������� �������� ������� Movement in provision 885 145 163 ( 166 )�� &EPERGI�EX�IRH�SJ�XLI�]IEV�� ��������� �������� ������� ������ %X�XLI�VITSVXMRK�HEXI�����SJ�XLI�XVEHI�VIGIMZEFPIW�EVI�JVSQ�GYWXSQIVW�MR�XLI�VIXEMP�MRHYWXV]��ERH����SJ½GI�WTEGI��8LI�VIQEMRMRK�GYWXSQIV�FEWI�MW�WQEPP�ERH�YRVIPEXIH��%GGSVHMRKP]��XLI�HMVIGXSVW��FIPMIZI�XLEX�XLIVI�MW�RS�JYVXLIV�TVSZMWMSR�VIUYMVIH�MR�I\GIWW�SJ�XLI�EPPS[ERGI�JSV�HSYFXJYP�HIFX�VIGSKRMWIH��� Ageing of impaired trade receivables

120+ days 5 169 4 284 2 873 2 710

11. Cash and cash equivalents ` Bank balances 159 478 7 893 157,508 6 143 Money Market 22 861 175 381 22,861 175 381 182 339 183 274 180,369 181 524 12. Stated capital � -WWYIH�ERH�JYPP]�TEMH�� �� �� �� Opening balance 347 547 222 (2014: 222 182 055) ordinary shares 318 983 77 028 318 983 77 028 Bonus Issue nil (2015: 22 218 128) ordinary shares - 42 881 - 42 881 Rights Issue nil (2015: 103 147 039) ordinary shares - 199 074 - 199 074 Closing balance 347 547 222 (2015: 347 547 222) ordinary shares 318 983 318 983 318 983 318 983 13. Debentures Opening balance 347 547 222 (2014: 222 182 055) debentures 111 215 71 098 111 215 71 098 Bonus Issue nil (2015: 22 218 128) debentures - 7 110 - 7 110 Rights Issue nil (2015: 103 147 039) debentures - 33 007 - 33 007 Closing balance 347 547 222 (2015: 347 547 222) debentures 111 215 111 215 111 215 111 215 ����$FFXPXODWHG�SUR¼WV � %VMWMRK�JVSQ�STIVEXMSRW�� ����� ���� ��������� ��������� %VMWMRK�JVSQ�VIZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVXMIW�� ����������� ���������� ���������� ��������� 480 274 399 757 347 518 289 101

15. Debenture interest and dividend reserve Debenture interest 13 513 11 253 13 513 11 253 Dividends 4 344 1 477 4 344 1 477 17 857 12 730 17 857 12 730

(MWXVMFYXMSRW�XS�PMROIH�9RMX�LSPHIVW�EVI�TVMQEVMP]�MR�XLI�JSVQ�SJ�HIFIRXYVI�MRXIVIWX���8LI�HMWXVMFYXMSR��QEHI�FM�ERRYEPP]��ZEVMIW�[MXL�XLI�STIVEXMRK�TIVJSVQERGI�SJ�XLI�+VSYT�ERH�Company.

Debenture interest Interim paid - 3.273 (2015: 3.779) thebe 11 375 8 405 11 375 8 405 Interim declared - 3.888 (2015: 3.032) thebe 13 513 10 538 13 513 10 538 Final proposed - 0.00 (2015: 0.211) thebe - 735 - 735 24 888 19 678 24 888 19 678

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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48

15. Debenture interest and dividend reserve (Continued) Group Company 2016 2015 2016 2015

Dividends: Interim paid - 0.065 (2015: 0.076) thebe 226 158 226 158 Interim declared - 0.335 (2015: 0.061) thebe 1 164 212 1 164 212 Final proposed - 0.915 (2015: 0.364) thebe 3 180 1 265 3 180 1 265 4 570 1 635 4 570 1 635 On 16 December 2016, a second interim distribution was declared. The distribution is payable on 28 April 2017. � %X�]IEV�IRH��XLI�½REP�HIFIRXYVI�MRXIVIWX�ERH�HMZMHIRHW�TIV�PMROIH�YRMX�LEZI�FIIR�TVSTSWIH�� ERH�[MPP�FI�WYFQMXXIH�JSV�JSVQEP�ETTVSZEP�EX�XLI�JSVXLGSQMRK�%RRYEP�+IRIVEP�1IIXMRK��8LI� amounts are included in the debenture interest and dividend reserve.

����1RQ�FRQWUROOLQJ�LQWHUHVWV Opening balance 160 706 136 928 - - � 7LEVI�SJ�TVS½X�JSV�XLI�]IEV�� ��������� ��������� ���� ���� (MZMHIRHW�JSV�XLI�]IEV�� ������� �� ��� ���� ��� Dividends relating to prior period ( 268 ) - - - Closing balance 177 559 160 706 - - ����/RQJ�WHUP�ERUURZLQJV � %JVMGER�&EROMRK�'SVTSVEXMSR�SJ�&SXW[ERE�0MQMXIH�� ��������� ��������� ��������� �������� Less: current portion ( 439 ) (1 004 ) ( 439 ) (1 004 ) 10 564 10 282 10 564 10 282

8LI�EQSYRX�VITVIWIRXW�XLI�TSVXMSR�SJ�GETMXEP�HVE[R�HS[R�JVSQ�XLI�PSER�JEGMPMX]�SJ�P12, 200, 000 as at the reporting date, plus accrued interest. Interest accrues at prime QMRYW�����'ETMXEP�ERH�MRXIVIWX�EVI�VITEMH�MR�����IUYEP�MRWXEPQIRXW�IJJIGXMZI����%TVMP�������The loan is secured as indicated in note 8.

� *MVWX�2EXMSREP�&ERO�SJ�&SXW[ERE�0MQMXIH�� ��������� �������� ��������� �������� Less : current portion (5 597 ) (4 178 ) (5 597 ) (4 178 ) 8 263 15 216 8 263 15 216

8LI�EQSYRX�VITVIWIRX�XLVII�I\MWXMRK�PSERW�SJ�6('�4VSTIVXMIW�0MQMXIH�[LMGL�EVI�VITE]EFPI�MR�QSRXLP]�MRWXEPQIRXW�SJ�4���������4��������ERH�4��������TIV�PSER��-R�XLI�TVMSV�]IEV��ER�EHHMXMSREP�PSER�SJ�4�����������[EW�EWWYQIH�SR�XLI�TYVGLEWI�SJ�VIWMHIRXMEP�¾EXW�ERH�MW�VITE]EFPI�MR�QSRXLP]�MRWXEPQIRXW�SJ�4��������%PP�JSYV�PSERW�FIEV�MRXIVIWX�EX�E�VEXI�SJ�TVMQI�QMRYW��������8LI]�EVI�WIGYVIH�EW�TIV�RSXI����� ��

� ��&EVGPE]W�&ERO�SJ�&SXW[ERE�0MQMXIH�� ��������� ������� ���� �� Less: current portion (13 002 ) (13 982 ) - - 51 791 47 693 - -

The amount represents loans taken by Three Partners Resorts Limited. One existing loan FIEVW�MRXIVIWX�EX�E�VEXI�SJ�TVMQI�QMRYW������ERH��MW�VITE]EFPI�MR�����QSRXLP]�MRWXEPQIRXW�SJ��4�����������

(YVMRK�XLI�]IEV��ER�EHHMXMSREP�PSER�SJ�4�����������FIEVMRK�MRXIVIWX�EX�E�VEXI�SJ�TVMQI�TPYW���was taken. 8LI�PSER�MW�VITE]EFPI�MR����IUYEP�MRWXEPQIRXW�SJ�4���������The loan is secured as indicated in note 8.

BIFM Capital Investment Fund One (Proprietary) Limited 157 083 141 869 92 142 76 928 Less : current portion (3 653 ) (3 439 ) (2 142 ) (1 928 ) 153 430 138 430 90 000 75 000

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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����/RQJ�WHUP�ERUURZLQJV��&RQWLQXHG� Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000

8LIWI�PSERW�VITVIWIRX�WYFWGVMTXMSR�SJ�4VSQMWWSV]�2SXIW�JSV�6('�4VSTIVXMIW�0MQMXIH�ERH�8LVII�4EVXRIVW�6IWSVX�0MQMXIH�EX�½\IH�MRXIVIWX�VEXIW�SJ�������ERH������VIWTIGXMZIP]�GSQTSYRHIH�WIQM�ERRYEPP]��(YI�HEXIW�SJ�MRXIVIWX�TE]QIRXW�EVI�XLI����1EVGL�ERH����7ITXIQFIV�SJ�IEGL�]IEV��8LI�VIHIQTXMSR�HEXIW�EVI����7ITXIQFIV������XS������JSV�6('�4VSTIVXMIW�0MQMXIH�ERH����7ITXIQFIV������XS������JSV�8LVII�4EVXRIVW�6IWSVXW�0MQMXIH��� �(YVMRK�XLI�]IEV��6('�4VSTIVXMIW�0MQMXIH�XSSO�SYX�ER�EHHMXMSREP�PSER�SJ�4���1MPPMSR���8LMW�PSER�FIEVW�E�½\IH�MRXIVIWX�VEXI�SJ���GSQTSYRHIH�WIQM�ERRYEPP]���(YI�HEXIW�SJ�MRXIVIWX��TE]QIRXW�EVI����.YRI�ERH����(IGIQFIV�SJ�IEGL�]IEV��� �The loans are secured as per note 8.

� 0SRK�XIVQ�TSVXMSR�SJ�FSVVS[MRKW�� ���������� ��������� ���������� �������� � �'YVVIRX�TSVXMSR�SJ�FSVVS[MRKW�� ��������� ��������� �������� ������� 18. Deferred tax liabilities � 8IQTSVEV]�HMJJIVIRGIW�EVMWMRK�SR���� �� �� �� �������������������������������������������������������� Plant and equipment 750 58 687 66 Investment properties -capital allowances claimed to date 141,621 125 077 54 151 45 826 � ������������������������������������������������GETMXEP�KEMRW�XE\�SR�JEMV�ZEPYI�� ���������� ���������� ���������� �������� Tax losses (19 047 ) (32 164 ) (8 658 ) (9 131 ) 393 348 303 247 177 986 115 784 Tax value 86,537 66,714 39,157 25 472 Reconciliation of movement Opening balance 66 714 44 961 25 472 17 077 � 'LEVKI�XS�TVS½X�SV�PSWW��������������GYVVIRX�]IEV��I\GPYHMRK�GETMXEP�KEMRW�XE\ �� �������� ������� �������� ������ � ������������������������������������������������GETMXEP�KEMRW�XE\�SR�JEMV�ZEPYI�SJ�MRZIWXQIRX�TVSTIVX]���������� �������� ��������� �������� ������������������������������������������������TVMSV�]IEV�EHNYWXQIRX�� ����� ���� ���� ��� Closing balance 86 537 66 714 39 157 25 472 Tax losses � �8LI�XE\�PSWWIW��MJ�YRYXMPMWIH��[MPP�JEPP�E[E]�EW�JSPPS[W�� Group Company Financial year Tax year P’000 P’000 2017 2018 10 535 - 2018 2019 13 159 2019 2020 4 790 4 790 2020 2021 3 709 3 709 19 047 8 658 � 8LI�HMVIGXSV´W�LEZI�IZEPYEXIH�XLI�TVS½XEFMPMX]�XVIRHW�SJ�XLI�+VSYT�ERH�'SQTER]�ERH�LEZI�HIXIVQMRIH�XLEX�EX�XLI�GYVVIRX�PIZIP�STIVEXMSRW��XLI��� +VSYT�ERH�'SQTER]�[MPP�QEOI�EHIUYEXI�XE\EFPI�TVS½XW�MR�XLI�JYXYVI�JSV�[LMGL�XLI�XLI�EWWIWWIH�PSWWIW�[MPP�FI�YXMPMWIH�FIJSVI�XLI]�I\TMVI��� ��

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000 19. Trade and other payables Trade payables 10 188 7 982 6 318 4 571 Advance rental received 3 165 3 639 2 674 3 246 VAT payable 1 046 70 430 63 Other payables 1 029 1 785 174 1 748 Related parties: Property and Asset Management Limited 585 736 571 700 Italtswana Construction Company (Proprietary) Limited 27 1 420 - 1 376 RDC Properties International (Proprietary) Limited - 818 - 818 Chobe Financial Corporation 118 144 118 144 � (EZMH��(SVGEW�1EKERK�*EQMP]�8VYWX�� ������ ������� ������ ������ Lotsane Complex (Proprietary) Limited - - 28 16 Propcorp (Proprietary) Limited - - - 140 16 276 16 738 10 431 12 966

8LI�EZIVEKI�GVIHMX�TIVMSH�MW����HE]W�JSV�XVEHI�TE]EFPIW��8LI�TE]EFPI�XS�4VSTIVX]�ERH�%WWIX�1EREKIQIRX�0MQMXIH�EXXVEGXW�MRXIVIWX�SJ�TVMQI�PIWW�����TIV�ERRYQ��8LI�HMVIGXSVW�FIPMIZI�XLI�JEMV�ZEPYI�SJ�XLI�XVEHI�ERH�SXLIV�TE]EFPIW�ETTVS\MQEXI�XLIMV�GEVV]MRK�EQSYRXW���

20. Bank facilities � -R�EHHMXMSR�XS�XLI�PSERW�HIWGVMFIH�MR�RSXI�����XLI�+VSYT�LEW�XLI�JSPPS[MRK�FEROMRK�JEGMPMXMIW���� ���� �� �� �� Barclays Bank of Botswana Limited

� %�FERO�SZIVHVEJX�XSXEPPMRK�4������������ ������� ������� ���� ���� �8LI�YRYWIH�JEGMPMX]�MW�4�����������������4������� �� ���� �� �

21. Related party transactions

%PP�VIPEXIH�TEVXMIW�MR�EHHMXMSR�XS�XLSWI�PMWXIH�MR�RSXI���ERH�XLI�HMVIGXSVW�SJ�XLI�GSQTER]�EVI�GSQTERMIW�[MXL�GSQQSR�WLEVILSPHMRK�ERH�GSRXVSP��I\GITX�JSV�XLI�(EZMH��(SVGEW�1EKERK�*EQMP]�8VYWX�[LMGL�MW�E�VIPEXIH�TEVX]�XLVSYKL�E�HMVIGXSV�SJ�XLI�'SQTER]��� Receivables relating to related parties are disclosed in note 10.

Payables relating to related parties are disclosed in note 19. 8LI�JSPPS[MRK�XVEHMRK�XVERWEGXMSRW�[IVI�GEVVMIH�SYX�[MXL�VIPEXIH�TEVXMIW��� Interest income (note 3) Three Partners Resorts Limited - - (328 ) (495 )

Yuagong (Proprietary) Limited (819 ) (74 ) (819 ) (74 ) (819 ) (74 ) (1,147 ) (569 ) Finance costs (note 4) Property and Asset Management Limited - 127 - - Antya Investments (Proprietary) Limited 9 - - - 9 127 - -

Property and Asset Management Limited - management and administration (note 2) 5 460 4 948 2 920 2 738 � ��PIEWI�VIRI[EP�JIIW��RSXI�� �� �������� ����� ������ ��� - service charges (note 2) 4 530 2 795 4 530 2 795

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

21. Related party transactions (Continued) Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000

1EREKIQIRX�ERH�EHQMRMWXVEXMSR�JIIW�EVI�GEPGYPEXIH�SR�E�½\IH�TIVGIRXEKI�SJ�RIX�VIRXEP�MRGSQI�EJXIV�XEOMRK�FEH�HIFXW�MRXS�GSRWMHIVEXMSR��� �0IEWI�VIRI[EP�JIIW�EVI�GEPGYPEXIH�SR�E�GSQQIVGMEP�FEWMW��7IVZMGI�GLEVKIW�EVI�GEPGYPEXIH�EW�E�½\IH�TIVGIRXEKI�SJ�XLI�QEVOIX�GETMXEPMWEXMSR�SJ�XLI�+VSYT�SR�XLI�PEWX�XVEHMRK�HE]�SJ�XLI�QSRXL��� All related party transactions are at arms length. Construction costs capitalised to Investment Property Italtswana Construction Company (Proprietary) Limited 14 373 8 443 10 363 5 296 Directors’ emoluments ��JSV�WIVZMGIW�EW�HMVIGXSVW��RSXI�� � ����� ����� ����� ���

22. Operating lease arrangements

The company and Group as lessor. Operating leases receivable by the company as a lessor relate to the investment properties owned by the company with lease terms between 1 and 15 years. �8LI�TVSTIVX]�VIRXEP�MRGSQI�IEVRIH�F]�XLI�KVSYT�JVSQ�MXW�MRZIWXQIRX�TVSTIVXMIW�FIJSVI�WXVEMKLX�PMRI�EHNYWXQIRX�MW�P88 526 000 (2015: P83 291 000). %X�XLI�WXEXIQIRX�SJ�½RERGMEP�TSWMXMSR�HEXI��XLI�KVSYT�LEH�GSRXVEGXIH�[MXL�XIRERXW�JSV�XLI�JSPPS[MRK�JYXYVI�QMRMQYQ�PIEWI�TE]QIRXW��� ��

Within one year 56 042 57 895 22 114 17 375 � -R�XLI�WIGSRH�XS�½JXL�]IEVW�MRGPYWMZI�� ���������� ����������� ���������� ���������� %JXIV�½ZI�]IEVW�� ���������� ����������� ���������� ��������� 425 108 455 513 120 464 84 158

23. Capital commitments Authorised and contracted 26,103 7,501 26,103 3,771 Authorised but not contracted 52,467 37,143 - 37,143 78,570 44,644 26,103 40,914

�8LI�EYXLSVMWIH�ERH�GSRXVEGXIH�GETMXEP�GSQQMXQIRXW�VIPEXI�XS�XLI�GSQTPIXMSR�SJ�GSRWXVYGXMSR�SJ�XLI�-''�6IWMHIRXMEP�*PEXW�WMXYEXIH�SR�PSXW��������������������������������%�0SER�JEGMPMX]�JSV�XLI�GSRWXVYGXMSR�SJ�XLI�-''�6IWMHIRXMEP�*PEXW�LEW�FIIR�SFXEMRIH�EW�HIWGVMFIH�MR�RSXI����ERH�WIGYVIH��EW�HIWGVMFIH�MR�RSXI����6('�4VSTIVXMIW�0MQMXIH�LEW�HIQSPMWLIH�SRI�SPH�FPSGO�SJ���VIWMHIRXMEP�YRMXW��ERH�XLIR�SR�XLEX�PERH�ERH�XLI�YRHIZIPSTIH��TSVXMSR��LEZI�WXEVXIH�HIZIPSTMRK�ER�EHHMXMSREP����VIWMHIRXMEP�¾EXW�ERH�ERGMPPEV]�WIVZMGIW

The authorised but not contracted capital commitments relate to the planned developments in Mozambique and Namibia.”

24. Contingent liabilities

�9T�YRXMP�.YRI������6('�4VSTIVXMIW�0MQMXIH�LEH�KMZIR�FERO�KYEVERXIIW�JSV�XLI�FERO�SZIVHVEJX�JEGMPMX]�EZEMPIH�XS�,17��7SGMqXq�%RSR]QI��,17� �F]�GSQQIVGMEP�FEROIVW�FEWIH�MR�1EHEKEWGEV��EW�JSPPS[W����%R�EQSYRX��IUYMZEPIRX�XS�4�����������)YVS�������� �F]�*MVWX�2EXMSREP�&ERO�SJ�&SXW[ERE�0MQMXIH�MR�JEZSYV�SJ�&ERUYI�1EPKEGLI�HI�03GIER��-RHMIR��&13- ��JSV�ER�SZIVHVEJX�JEGMPMX]��The guarantee is no longer required.6('�4VSTIVXMIW�0MQMXIH�LEW�EPWS�KMZIR�E�GSVTSVEXI�KYEVERXII�SJ�4�����������MR�JEZSYV�SJ�&EVGPE]W�&ERO�SJ�&SXW[ERE�0MQMXIH�ERH�E�(IIH�SJ�'IWWMSR�SJ�6IRXEPW�HEXIH����2SZIQFIV������SZIV�4PSX�������+EFSVSRI��� �� �� �� ��

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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25. Segmental reporting

8LI�+VSYT´W�FYWMRIWW�EGXMZMXMIW�EVI�GSRGIRXVEXIH�MR�XLI�WIKQIRX�SJ�TVSTIVX]�VIRXEPW�ERH�QSVI�XLER����EVI�TVSZMHIH�[MXLMR�XLI�KISKVETLMGEP�VIKMSR�SJ�&SXW[ERE�XLIVIJSVI�WIKQIRXEP�MRJSVQEXMSR�FEWIH�SR�FYWMRIWW�EGXMZMXMIW�SV�KISKVETLMGEP�PSGEXMSRW�MW�RSX�GSRWMHIVIH�RIGIWWEV]���6IZIRYI�JVSQ�X[S�XIRERXW��IEGL�MR�I\GIWW�SJ����SJ�XLI�+VSYT�VIZIRYI�EQSYRXIH�XS�4������������������4���������� ��EVMWMRK�JVSQ�VIZIRYI�MR�XLI�&SXW[ERE�KISKVETLMGEP�WIKQIRX��VITVIWIRXMRK����������������� �SJ�XLI�+VSYT�VIZIRYI��2S�SXLIV�WMRKPI��XIRERX�GSRXVMFYXIH����SV�QSVI�XS�XLI�+VSYT´W�VIZIRYI�JSV�FSXL������ERH�������

Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000 26. Financial risk management &DWHJRULHV�RI�¼QDQFLDO�LQVWUXPHQWV Financial assets � *EMV�ZEPYI�XLVSYKL�TVS½X�ERH�PSWW�� �� �� �� �� Investments 3 270 - 116 349 116 349 Loans and receivables Trade and other receivables 21 344 24 625 12 728 18 924 Cash and cash equivalents 182 339 183 274 180,369 181 524 Financial liabilities at amortised cost � 0SRK�XIVQ�FSVVS[MRKW�� ��EX�¾SEXMRK�MRXIVIWX�VEXI�� ��������� ��������� ��������� ��������� 0SRK�XIVQ�FSVVS[MRKW��� ��EX�½\IH�MRXIVIWX�VEXI�� ���������� ���������� �������� � ��������� Trade and other payables 12 065 13 029 7 327 9 657 � &ERO�SZIVHVEJX�� � ���� �������� ����� �� 258 804 252 042 (59 952 ) (36 591 )

-R�XLI�RSVQEP�GSYVWI�SJ�FYWMRIWW�XLI�+VSYT�MW�I\TSWIH�XS�GYVVIRG]��GETMXEP��GVIHMX��PMUYMHMX]�and interest rate risk. The Group manages their exposure by meeting on a regular basis to IRWYVI�XLI�XVIEWYV]�EGXMZMXMIW�EVI�GEVVMIH�SYX�MR�ER�SVHIVP]�ERH�IJ½GMIRX�QERRIV�EHLIVMRK�XS�management procedures and policies.

Currency risk 8LI�+VSYT�YRHIVXEOIW�XVERWEGXMSRW�HIRSQMREXIH�MR�JSVIMKR�GYVVIRGMIW��7SYXL�%JVMGER�6ERH��)YVS�ERH�97�HSPPEV��'SRWIUYIRXP]��I\TSWYVIW�XS���I\GLERKI�VEXI�¾YGXYEXMSRW�EVMWI��*MRERGMEP�MRWXVYQIRXW�XLEX�EVI�WIRWMXMZI�XS�GYVVIRG]�VMWOW�EVI�QEMRP]�XVEHI�VIGIMZEFPIW��+VSYT�PSERW�XS�JSVIMKR�operations and cash and cash equivalents. Foreign currency sensitivity analysis �8LI�JSPPS[MRK�XEFPI�HIXEMPW�XLI�+VSYT´W�WIRWMXMZMX]�XS�E����MRGVIEWI�ERH����HIGVIEWI�MR�XLI�4YPE�EKEMRWX�XLI�VIPIZERX�JSVIMKR�GYVVIRGMIW������MW�XLI�WIRWMXMZMX]�VEXI�YWIH�[LIR�VITSVXMRK�JSVIMKR�GYVVIRG]�VMWO�MRXIVREPP]�XS�XLI�FSEVH�ERH�VITVIWIRXW�XLI�FSEVH´W�EWWIWWQIRX�SJ�XLI�VIEWSREFP]�TSWWMFPI�GLERKI�MR�JSVIMKR�I\GLERKI�VEXIW��8LI�WIRWMXMZMX]�EREP]WMW�MRGPYHIW�SRP]�SYXWXERHMRK�JSVIMKR�GYVVIRG]�HIRSQMREXIH�QSRIXEV]�MXIQW�ERH�EHNYWXW�XLIMV�XVERWPEXMSR�EX�XLI�TIVMSH�IRH�JSV�E����GLERKI�MR�JSVIMKR�GYVVIRG]�VEXIW��8LI�WIRWMXMZMX]�EREP]WMW�MRGPYHIW�VIGIMZEFPIW�JVSQ��XIRERXW�[LS�EVI�FMPPIH�MR�E�GYVVIRG]�SXLIV�XLER�XLI�JYRGXMSREP�SJ�XLI�+VSYT��%����WXVIRKXLIRMRK�SJ�XLI�4YPE�[SYPH�HIGVIEWI�XLI�TVS½X�ERH�IUYMX]�ERH�E����[IEOIRMRK�SJ�XLI�4YPE�[SYPH�LEZI�ER�IUYEP�FYX�STTSWMXI���IJJIGX�SR�XLI�TVS½X�ERH�IUYMX]��� �� �� �� ��

Group Company 2 016 2 015 2 016 2 015 P’000 P’000 P’000 P’000 United States Dollar 34 - - -

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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26. Financial risk management (Continued)

Capital risk The Group manages its capital to ensure that entities in the group will be able to continue as going concerns while maximising the return XS�WLEVILSPHIVW�XLVSYKL�XLI�STXMQMWEXMSR�SJ�XLI�HIFX�ERH�IUYMX]�FEPERGI��8LI�GETMXEP�WXVYGXYVI�SJ�XLI�KVSYT�GSRWMWXW�SJ��HIFX��[LMGL�MRGPYHIW�XLI��PSRK�XIVQ�FSVVS[MRKW���HMWGPSWIH�MR�RSXI�����GEWL�ERH�GEWL�IUYMZEPIRXW�ERH�IUYMX]�EXXVMFYXEFPI�XS�IUYMX]�LSPHIVW�SJ�XLI�TEVIRX�GSQTER]�GSQTVMWMRK�WXEXIH�GETMXEP��HIFIRXYVIW��ERH�EGGYQYPEXIH�TVS½XW�EW�HMWGPSWIH�MR�RSXIW��������ERH����VIWTIGXMZIP]�

Credit risk �8LI�+VSYT´W�GVIHMX�VMWO�MW�TVMQEVMP]�EXXVMFYXEFPI�XS�MXW�XVEHI�ERH�SXLIV�VIGIMZEFPIW��8LI�EQSYRXW�TVIWIRXIH�MR�XLI�WXEXIQIRXW�SJ�½RERGMEP�TSWMXMSR��EVI��RIX�SJ�EPPS[ERGIW�JSV�FEH�HIFXW�IWXMQEXIH�F]�QEREKIQIRX�FEWIH�SR�TVMSV�I\TIVMIRGI�ERH�XLI�GYVVIRX�IGSRSQMG�IRZMVSRQIRX��� �� �8LI�+VSYT�LEW�RS�WMKRM½GERX�GSRGIRXVEXMSR�SJ�GVIHMX�VMWO��[MXL�I\TSWYVI�WTVIEH�SZIV�E�PEVKI�RYQFIV�SJ��GYWXSQIVW��� �� �� Liquidity risk �9PXMQEXI�VIWTSRWMFMPMX]�JSV�PMUYMHMX]�VMWO�QEREKIQIRX�VIWXW�[MXL�XLI�&SEVH�SJ�(MVIGXSVW��4VYHIRX�PMUYMHMX]�VMWO�QEREKIQIRX�MQTPMIW�QEMRXEMRMRK��WYJ½GMIRX��GEWL�ERH�QEVOIXEFPI�WIGYVMXMIW��XLI�EZEMPEFMPMX]�SJ�JYRHMRK�XLVSYKL�ER�EHIUYEXI�EQSYRX�SJ�GSQQMXXIH�GVIHMX�JEGMPMXMIW�ERH�XLI�EFMPMX]�XS���GPSWI�SYX�QEVOIX�TSWMXMSRW��(YI�XS�XLI�H]REQMG�REXYVI�SJ�XLI�YRHIVP]MRK�FYWMRIWWIW��QEREKIQIRX�SJ�XLI�+VSYT�EMQW�XS�QEMRXEMR�¾I\MFMPMX]�MR��JYRHMRK�F]�OIITMRK�GSQQMXXIH�GVIHMX�PMRIW�EZEMPEFPI���� �� �� �� �� Interest rate risk -RXIVIWX�VEXI�VMWO�MW�XLI�TSWWMFPI�PSWW�MR�XLI�ZEPYI�VIWYPXMRK�JVSQ�ER�YRI\TIGXIH�ERH�EHZIVWI�QSZIQIRX�MR�MRXIVIWX��VEXIW��)RXMXMIW�MR�XLI�+VSYT�EVI�I\TSWIH�XS�MRXIVIWX�VEXI�VMWO�FIGEYWI�XLI]�FSVVS[�JYRHW�EX�FSXL�XLI�½\IH�ERH�¾SEXMRK�MRXIVIWX�VEXIW��8LI�+VSYT�IRXMXMIW�QEREKI�MRXIVIWX�VEXI�VMWO��QEMRXEMRMRK�ER�ETTVSTVMEXI�QM\�FIX[IIR�½\IH�ERH�¾SEXMRK�VEXI�FSVVS[MRKW�ERH�F]�FEWMRK�XLI�MRXIVIWX�VEXI�SR�½RERGMEP�EWWIXW�ERH�PMEFMPMXMIW��around the prime lending rate. Financial instruments that are sensitive to interest rate risks, comprise bank balances, loans and advances, related party balances and long term borrowings. Interest rate sensitivity analysis �8LI�WIRWMXMZMX]�EREP]WIW�FIPS[�LEZI�FIIR�HIXIVQMRIH�FEWIH�SR�XLI�I\TSWYVI�XS�MRXIVIWX�VEXIW�JSV�FSXL�½RERGMEP�EWWIXW�ERH�PMEFMPMXMIW�EX�XLI�IRH�SJ�XLI�VITSVXMRK�TIVMSH��*SV�XLI�¾SEXMRK�MRXIVIWX�VEXI�½RERGMEP�EWWIXW�ERH�PMEFMPMXMIW��XLI�EREP]WMW�MW�TVITEVIH�EWWYQMRK�XLI�EQSYRX�SJ�XLI�EWWIX�SV�PMEFMPMX]�SYXWXERHMRK�EX�XLI�IRH�SJ�XLI�VITSVXMRK�TIVMSH�[EW�SYXWXERHMRK�JSV�XLI�[LSPI�]IEV��%����FEWMW�TSMRX�MRGVIEWI�SV�HIGVIEWI�MW�YWIH�F]�XLI�Directors when reporting interest rate risk management, as it represents a reasonable possible change in the interest rates. �-J�MRXIVIWX�VEXIW�LEH�FIIR����FEWMW�TSMRXW�LMKLIV�PS[IV�ERH�EPP�SXLIV�ZEVMEFPIW�[IVI�LIPH�GSRWXERX��XLI�IJJIGX�SJ�XLI�TVS½X��� �� ��JSV�XLI�]IEV�JSV�XLI�+VSYT�ERH�'SQTER]��[SYPH�LEZI�FIIR�EW�JSPPS[W��� �� �� �� �

Group Amount of asset/(liability) Change in interest rate “Increase/(decrease) LQ�SUR¼W�EHIRUH�WD[± 31 December 2016 P’000 % P’000 Financial assets Related party receivables 3 074 0.50 15 Cash and cash equivalents 182 339 0.50 912 Financial liabilities � 0SRK�XIVQ�FSVVS[MRKW�EX�¾SEXMRK�MRXIVIWX�VEXI�� �������� � �������� ������ � &ERO�SZIVHVEJX�� ����� ����������������������� ����� 479

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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26. Financial risk management (Continued) Group Amount of asset/(liability) Change in interest rate “Increase/(decrease) LQ�SUR¼W�EHIRUH�WD[± 31 December 2015 P’000 % P’000 Financial assets Related party receivables 2 465 0.50 12 Cash and cash equivalents 183 274 0.50 916 Financial liabilities � 0SRK�XIVQ�FSVVS[MRKW���EX�¾SEXMRK�MRXIVIWX�VEXI�� �������� � ������� ������ � &ERO�SZIVHVEJX�� ������� � ������� ����� 442 Company 31 December 2016 Financial assets Related party receivables 10 082 0.50 50 Cash and bank balances 180 369 0.50 902 Financial liabilities � 0SRK�XIVQ�FSVVS[MRKW���EX�¾SEXMRK�MRXIVIWX�VEXI�� �������� � ������� ������ � &ERO�SZIVHVEJX�� ���� ����������������������� ����� 828 31 December 2015 Financial assets Related party receivables 2 418 0.50 12 Cash and bank balances 181 524 0.50 908 Financial liabilities � 0SRK�XIVQ�FSVVS[MRKW���EX�¾SEXMRK�MRXIVIWX�VEXI�� �������� � ������� ������ � &ERO�SZIVHVEJX�� ����� ����������������������� ����� 767 � )DLU�YDOXHV�RI�¼QDQFLDO�LQVWUXPHQWV �8LI�JEMV�ZEPYIW�SJ�½RERGMEP�MRWXVYQIRXW�ETTVS\MQEXIW�XLIMV�GEVV]MRK�ZEPYIW��8LIVI�EVI�RS�½RERGMEP�MRWXVYQIRXW�XLEX�EVI�QIEWYVIH��WYFWIUYIRX�XS�MRMXMEP�VIGSKRMXMSR�EX�JEMV�ZEPYI�� � � �� �

27. Fair value measurement

Assets measured at fair value 7SQI�SJ�XLI�+VSYT@W�½RERGMEP�EWWIXW�EVI�QIEWYVIH�EX�JEMV�ZEPYI�EX�XLI�IRH�SJ�IEGL�VITSVXMRK�TIVMSH��&IPS[�MW�XLI�MRJSVQEXMSR�EFSYX��LS[�JEMV���ZEPYIW�MR�XLI�½RERGMEP�EWWIXW�EVI�HIXIVQMRIH��MR�TEVXMGYPEV��XLI�ZEPYEXMSR�XIGLRMUYIW�ERH�MRTYXW�YWIH ��� �� �� �� ��

Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000

Recurring measurement at the end of the reporting period Investment properties 1,169,268 1,075,161 617 707 556 820 5HFRQFLOLDWLRQ�RI�IDLU�YDOXH�PHDVXUHPHQWV�FDWHJRULVHG�ZLWKLQ�/HYHO���RI�IDLU�YDOXH�KLHUDUFK\ Investment properties Opening value 1,075,161 925 485 556 820 463 622 8SXEP�KEMRW�JSV�XLI�TIVMSH�MRGPYHIH�MR�TVS½X�SV�PSWW���EJXIV�WXVEMKLX�PMRI�EHNYWXQIRX �� ��������� ��������� ��������� ��������%HHMXMSRW�ERH�XVERWJIVW�� �������� ��������� ������ � �������Closing balance 1,169,268 1,075,161 617 707 556 820

+EMRW�ERH�PSWWIW�EVMWMRK�JVSQ�XLI�JEMV�ZEPYEXMSR�SJ�XLI�MRZIWXQIRX�TVSTIVXMIW�EVI�WLS[R�EW�E�WITEVEXI�PMRI�MR�XLI�WXEXIQIRX�SJ�GSQTVILIRWMZI�MRGSQI�EW�JSPPS[W��

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

27. Fair value measurement (Continued) Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000

8SXEP�KEMRW�JSV�XLI�TIVMSH�MRGPYHIH�MR�TVS½X�SV�PSWW���EJXIV�WXVEMKLX�PMRI�EHNYWXQIRX �� ��������� ��������� ��������� �������� Available for sale investments 14,415 - 11 145 -

5HFRQFLOLDWLRQ�RI�IDLU�YDOXH�PHDVXUHPHQWV�FDWHJRULVHG�ZLWKLQ�/HYHO���RI�IDLU�YDOXH�KLHUDUFK\ %ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW�� �� �� �� ��Opening value - - - - Additions 13,139 - 10 000 -

� �8SXEP�KEMRW�JSV�XLI�TIVMSH�MRGPYHIH�MR�SXLIV�GSQTVILIRWMZI�MRGSQI�� �������� ���� �������� ��� Closing balance 14,415 - 11 145 -

Quantitative information about fair value measurements using the key inputs

Fair value at Fair value Valuation Key Range 31 December 2016 hierarchy technique inputs Group Direct Capitalisation Investment properties 1,169,268 Level 3 capitalisation rate 8%-12% Quoted prices in � %ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW� ��������� �0IZIP����� �5YSXIH�TVMGIW��� EGXMZI�QEVOIXW��� �� Company Direct Capitalisation Investment properties 617 707 Level 3 capitalisation rate 8%-12% Quoted prices in� %ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW� ��������� �0IZIP����� �5YSXIH�TVMGIW��� �EGXMZI�QEVOIXW��� ��� Fair value at Fair value Valuation Key Range 31 December 2015 hierarchy technique inputs Group Direct Capitalisation Investment properties 1,075,161 Level 3 capitalisation rate 8%-12% Quoted prices in� %ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW� ���� �0IZIP����� 5YSXIH�TVMGIW������������������EGXMZI�QEVOIXW�� ��� Company Direct Capitalisation Investment properties 556 820 Level 3 capitalisation rate 8%-12% Quoted prices in� %ZEMPEFPI�JSV�WEPI�MRZIWXQIRXW� ���� �0IZIP����� �5YSXIH�TVMGIW������������������EGXMZI�QEVOIXW�� ���

Valuation process of investment properties-RZIWXQIRX�TVSTIVXMIW�EVI�VIZEPYIH�ERRYEPP]�F]�XLI�&SEVH�SJ�(MVIGXSVW�FEWIH�SR�E�(MVIGX�'ETMXEPMWEXMSR�QSHIP��)EGL�TVSTIVX]�MW�VIZEPYIH�F]�MRHITIRHIRX�ZEPYIVW�EX�PIEWX�IZIV]�XLVII�]IEVW��*SV����(IGIQFIV�������0SXW������������������+EFSVSRI���8LSPS�3J½GI�4EVO ��ERH�0IEWI�Area No. 4RO, Kasane (Chobe Marina Lodge) have been valued by Willy Kathurima Associates, independent valuers not related to the Group. ;MPP]�/EXLYVMQE�%WWSGMEXIW�EVI�VIKMWXIVIH�QIQFIVW�SJ�XLI�6IEP�)WXEXI�-RWXMXYXI�SJ�&SXW[ERE��6)-& �ERH�PMGIRGIH�F]�XLI�6IEP�)WXEXI�%HZMWSV]��Council (REAC).

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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��

27. Fair value measurement (Continued)

Information about the sensitivity to changes in unobservable inputs

�8LI�WMKRM½GERX�YRSFWIVZEFPI�MRTYXW�YWIH�MR�XLI�JEMV�ZEPYI�QIEWYVIQIRX�SJ�XLI�MRZIWXQIRX�TVSTIVXMIW�EVI�XLI�GETMXEPMWEXMSR�VEXIW��7MKRM½GERX�MRGVIEWIW���HIGVIEWIW ��MR�XLI�GETMXEPMWEXMSR�VEXIW�[SYPH�VIWYPX�MR�WMKRM½GERXP]�PS[IV��LMKLIV �JEMV�ZEPYI�QIEWYVIQIRX��8LI�GLERKIW�XS�GETMXEPMWEXMSR��VEXIW�EVI�HITIRHERX�SR�ZEVMSYW�QEVOIX��JEGXSVW�MRGPYHMRK�PSGEXMSR�SJ�TVSTIVXMIW��MRXIVIWX�VEXIW��PIRKXL�SJ�PIEWIW�ERH�UYEPMX]�SJ�XIRERXW��

%R�MRGVIEWI�MR�XLI�GETMXEPMWEXMSR�VEXI�F]�����[SYPH�VIWYPX�MR�XLI�VIHYGXMSR�SJ�XLI�JEMV�ZEPYI�SJ�XLI�MRZIWXQIRX�TVSTIVXMIW�F]�ETTVS\MQEXIP]�P68, 500,000.�%�HIGVIEWI�MR�XLI�GETMXEPMWEXMSR�VEXI�F]�����[SYPH�VIWYPX�MR�ER�MRGVIEWI�MR�XLI�JEMV�ZEPYI�SJ�XLI�MRZIWXQIRX�TVSTIVXMIW�F]�4�������������

28. Investment in a joint venture � �(IXEMPW�SJ�XLI�+VSYT´W�MRZIWXQIRX�MR�E�NSMRX�ZIRXYVI�EX�XLI�IRH�SJ�XLI�VITSVXMRK�TIVMSH�MW�EW�JSPPS[W��� � � � � � � 3ODFH�RI�LQFRUSRUDWLRQ�� 3URSRUWLRQ�RI�RZQHUVKLS��� � Name of joint venture Principal activity and principal place interest and voting rights held of business by the Group 2016 2015 � ,17��7SGMqXq�%RSR]QI�� � 3TIVEXMRK�E�PSHKI�ORS[R�� � � � � (HMS1) as Isalo Rock lodge Madagascar 50% 50% � 8LI�EFSZI�NSMRX�ZIRXYVI�MW�EGGSYRXIH�JSV�YWMRK�XLI�IUYMX]�QIXLSH�MR�XLIWI�½RERGMEP�WXEXIQIRXW�� �� �� �� � 7YQQEVMWIH�MRJSVQEXMSR�MR�VIWTIGX�SJ�XLI�+VSYT´W�NSMRX�ZIRXYVI�MW�WIX�SYX�FIPS[��8LI�WYQQEVMWIH�½RERGMEP� �� �� ��� MRJSVQEXMSR�FIPS[�VITVIWIRXW�EQSYRXW�WLS[R�MR�XLI�NSMRX�ZIRXYVI´W�½RERGMEP�WXEXIQIRXW�TVITEVIH�MR�EGGSVHERGI�[MXL�-*67�� �� ��� �EHNYWXIH�F]�XLI�+VSYT�JSV�IUYMX]�EGGSYRXMRK�TYVTSWIW �� �� �� �� �� 6XPPDULVHG�VWDWHPHQW�RI�¼QDQFLDO�SRVLWLRQ 2016 2015 P’000 P’000 Current Cash and cash equivalents 209 1 291 Financial assets (excluding cash) 3 654 2 719 Other current assets 23 4 219 Total current assets 3 886 8 229 � 'YVVIRX�TSVXMSR�SJ�PSRK�XIVQ�FSVVS[MRKW� ���� ���� Other current liabilities (including trade and other payables) (5 595 ) (9 855 ) Total current liabilities (5 595 ) (9 855 ) � 1RQ�FXUUHQW Investment property 52 109 50 483 Intangible Asset 108 � (IJIVVIH�XE\�EWWIX� �������� �������� Total non-current assets 58 561 54 682 Long term borrowings (3 985 ) - � 8SXEP�½RERGMEP�PMEFMPMXMIW� ������� � ��� Net assets 52 867 53 056

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

28. Investment in a joint venture (Continued) 2016 2015 P’000 P’000 Summarised statement of comprehensive income Revenue 1 472 813 � 7YVTPYW�EVMWMRK�SR�VIZEPYEXMSR�SJ�MRZIWXQIRX�TVSTIVX]� ����� ���� Operating costs (1 107 ) (1 611 ) Other operating income 120 115 � 2IX�JSVIMKR�I\GLERKI��PSWW �KEMRW� ������� � �������� �0SWW �TVS½X�JVSQ�STIVEXMSRW� ������ � ������� Finance costs ( 437 ) ( 699 ) � �0SWW �TVS½X�FIJSVI�XE\EXMSR� ������� � ����� Income tax expense 226 - � �0SWW �TVS½X�JSV�XLI�]IEV� ������ � ����� � +VSYT´W��PSWW �TVS½X�JSV�XLI�]IEV� ����� � ����� 5HFRQFLOLDWLRQ�RI�VXPPDULVHG�¼QDQFLDO�LQIRUPDWLRQ � 6IGSRGMPMEXMSR�SJ�XLI�EFSZI�WYQQEVMWIH�½RERGMEP�MRJSVQEXMSR�XS�XLI�GEVV]MRK�EQSYRX�SJ�XLI�MRXIVIWX��MR�NSMRX�ZIRXYVI�VIGSKRMWIH�MR�XLI�� ������ GSRWSPMHEXIH�½RERGMEP�WXEXIQIRXW�� � 6XPPDULVHG�¼QDQFLDO�LQIRUPDWLRQ Opening net assets 53 056 45 095 � �0SWW �4VS½X�JSV�XLI�]IEV� ������ � ����� Contributions received - 7 902 � *SVIMKR�I\GLERKI�HMJJIVIRGIW� ������� ������� � Closing net assets 52 867 53 056 � -RXIVIWX�MR�NSMRX�ZIRXYVI� ��� � ��� � 'EVV]MRK�EQSYRX�SJ�XLI�+VSYT´W�MRXIVIWX�MR�XLI�NSMRX�ZIRXYVI� ��������� ���������

Group Company 2016 2015 2016 201529. Tax Paid P’000 P’000 P’000 P’000 Opening balance 723 (149 ) 576 222 Current tax expense 361 (117 ) 0 0 Closing balance 1369 723 1,262 576 Tax paid (285 ) (989 ) (686 ) -354 ����$VVHWV�&ODVVL¼HG�DV�KHOG�IRU�VDOH � 0IEWILSPH�PERH�ERH�FYMPHMRKW�LIPH�JSV�WEPI�� ��������� ����� ���������� ���

%W�EX����(IGIQFIV�������XLI�+VSYT�[EW�EPVIEH]�TYVWYMRK�XLI�HMWTSWEP�SJ�SRI�SJ�MXW�TVSTIVXMIW��0SX�������)\XIRWMSR�����+EFSVSRI��ORS[R�EW�XLI�6IEP�)WXEXI�3J½GI�4EVO��8LI�+VSYT�VIGIMZIH�ER�SJJIV�JSV�XLI�TYVGLEWI�SJ�XLI�TVSTIVX]�[LMGL�XLI�(MVIGXSVW�FIPMIZIH�[EW�E�KVIEX�SJJIV�ERH�XLI]�QEHI�E�HIGMWMSR�XS�EGGITX�XLI�SJJIV��8LI�TVSTIVX]�LEW�FIIR�GPEWWM½IH�EW�ER�%WWIX�LIPH�JSV�WEPI��2S�MQTEMVQIRX�PSWW�[EW�VIGSKRMWIH�SR�GPEWWM½GEXMSR�SJ�XLI�PERH�ERH�FYMPHMRK�EW��LIPH�JSV�WEPI�EW�EX����(IGIQFIV�������XLI�JEMV�ZEPYI�SJ�XLI�TVSTIVX]�PIWW�GSWXW�XS�WIPP�[EW�LMKLIV�XLER�XLI�GEVV]MRK�EQSYRX��

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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Group Company 2016 2015 2016 2015 P’000 P’000 P’000 P’000����$YDLODEOH�IRU�VDOH�LQYHVWPHQW�FDUULHG�DW�IDLU�YDOXH Ordinary shares in listed companies 14,415 - 11 145 - Shares bought during the year 13,139 - 10 000 Fair value gains 1,276 - 1 145 - Closing balance 14,415 - 11 145 -

�(YVMRK�XLI�GYVVIRX�]IEV��6('�4VSTIVXMIW�0MQMXIH�MRZIWXIH�MR�0IXWLIKS�,SPHMRKW�0MQMXIH��E�½RERGMEP�WIVZMGIW�TVSZMHIV��PMWXIH�SR�XLI�&SXW[ERE�Stock Exchange. 6('�4VSTIVXMIW�7SYXL�%JVMGE��4VSTVMIXEV] �0MQMXIH�EPWS�MRZIWXIH�MR�7TIEV�6IEP�)WXEXI�-RZIWXQIRX�8VYWX�0MQMXIH��E�TVSTIVX]�6)-8�PMWXIH�SR�XLI�%PX<��SR�XLI�.7)��� � � � � � � ��

32. Events after the reporting period

�3R���*IFVYEV]�������XLI�HMVIGXSVW�GSQTPIXIH�XLI�HMWTSWEP�SJ�XLI�6IEP�)WXEXI�3J½GI�4EVO��WYFNIGX�XS�XLI�TYVGLEWIV�QIIXMRK�EPP�XLI�XIVQW�ERH�GSRHMXMSRW�EWWSGMEXIH���[MXL�XLI�XVERWEGXMSR��8LI�TVSTIVX]�[EW�HMWTSWIH�SJ�JSV�4������������8LMW�MW�E�RSR�EHNYWXMRK�IZIRX�Besides this event, there are no other events that have occurred.

2SXIW�XS�XLI�*MRERGMEP�7XEXIQIRXW Cont. 31 December 2016

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RDC Annual Report 2016+VS[XL�ERH�HMZIVWM½GEXMSR�SJ�XLI�6('�TSVXJSPMS

2SXMGI�SJ�1IIXMRK��

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Agenda

��� To read the notice convening the meeting.

Ordinary resolutions

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��� 8S�VIGIMZI��GSRWMHIV�ERH�EHSTX�XLI�%YHMXIH�*MRERGMEP�7XEXIQIRXW�JSV�XLI�]IEV�IRHIH����(IGIQFIV�������

��� To approve the distribution as recommended by the directors.

��� 8S�ETTVSZI�XLI�TE]QIRX�SJ�4��������JSV�HMVIGXSVW �IQSPYQIRXW��JIIW�ERH�I\TIRWIW �JSV�XLI�]IEV�IRHIH����(IGIQFIV�2016.

��� 8S�GSR½VQ�XLI�ETTSMRXQIRX�EW�HMVIGXSV�SJ�%��&VEHPI]�[LS�[EW�ETTSMRXIH�HMVIGXSV�F]�XLI�FSEVH�SR����1E]������

��� 8S�IPIGX�1V��+��+MEGLIXXM�[LS�VIXMVIW�F]�VSXEXMSR�MR�XIVQW�SJ�%VXMGPI������SJ�XLI�'SRWXMXYXMSR�ERH�FIMRK�IPMKMFPI�SJJIVW�LMQWIPJ�JSV�VI�IPIGXMSR�

��� 8S�IPIGX�1VW��/�1ETLEKI�[LS�VIXMVIW�F]�VSXEXMSR�MR�XIVQW�SJ�%VXMGPI������SJ�XLI�'SRWXMXYXMSR�ERH�FIMRK�IPMKMFPI�SJJIVW�LIVWIPJ�JSV�VI�IPIGXMSR�

��� 8S�ETTVSZI�XLI�VIQYRIVEXMSR�SJ�XLI�%YHMXSVW�JSV�XLI�]IEV�IRHIH����(IGIQFIV�������

����8S�ETTSMRX�%YHMXSVW�JSV�XLI�IRWYMRK�]IEV��

����To take questions posed by shareholders to the directors and management.

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&]�3VHIV�SJ�XLI�&SEVH�PricewaterhouseCoopers (Pty) Ltd Secretaries25 April 20176IKMWXIVIH�3J½GI�4PSX�������*EMVKVSYRH�3J½GI�4EVO�PO Box 294 Gaborone

Page 62: RDC Properties Limitedrdcbw.com/sites/default/files/Investor Information...fnb botswana nominees (pty) ltd re: acb bpopf wppp 7,711,723 2.22% BOTSWANA INSURANCE FUND MANAGEMENT 6,032,782

��

*SVQ�SJ�4VS\]

8LI�8[IRX]�*MVWX�%RRYEP�+IRIVEP�1IIXMRK�SJ�QIQFIVW�XS�FI�LIPH�SR����1E]������EX�������LVW�EX�XLI�6('�3J½GIW��6IEPIWXEXI�3J½GI�4EVO��4PSX�������&VSEHLYVWX�-RHYWXVMEP�7MXIW�+EFSVSRI��

-�;I���������������������������������������������������������������������������SJ��������������������������������������������������������FIMRK� E� QIQFIV�QIQFIVW� SJ� XLI� EFSZI�named Company do hereby appoint:

����������������������������������������������������������������������SJ����������������������������������������������������������SV�JEMPMRK�XLEX�TIVWSR�XLI�'LEMVQER�SJ�XLI�QIIXMRK�EW�Q]�SYV�TVS\]�XS�ZSXI�JSV�QI�YW�SR�Q]�SYV�FILEPJ�EX�XLI�WEMH�%RRYEP�+IRIVEP�1IIXMRK�SJ�XLI�'SQTER]

ERH�ZSXI�EW�JSPPS[W�SR�XLI�VIWSPYXMSR�XS�FI�TVSTSWIH�EX�XLI�QIIXMRK

Ordinary Business For Against AbstainOrdinary Resolution No. 1 (Agenda item 2)Ordinary Resolution No. 2 (Agenda item 3)Ordinary Resolution No. 3 (Agenda item 4)Ordinary Resolution No. 4 (Agenda item 5)Ordinary Resolution No. 5 (Agenda item 6)Ordinary Resolution No. 6 (Agenda item 7)Ordinary Resolution No. 6 (Agenda item 8)Ordinary Resolution No. 6 (Agenda item 9)Ordinary Resolution No. 6 (Agenda item 10)

-R�XLI�IZIRX�ER]�MRWXVYGXMSR�MR�VIWTIGX�SJ�ER]�VIWSPYXMSR�MW�PIJX�FPERO�MW�YRGPIEV��XLI�TVS\]�[MPP�ZSXI�EW�LI�WLI�HIIQW�½X��

%�QIQFIV�IRXMXPIH�XS�EXXIRH�ERH�ZSXI�QE]�ETTSMRX�E�TVS\]�XS�EXXIRH�ERH�ZSXI�JSV�LMQ�LIV�SR�LMW�LIV��FILEPJ�ERH�WYGL�TVS\]�RIIH�RSX�EPWS�FI�E�QIQFIV�SJ�XLI�'SQTER]��8LI�MRWXVYQIRX�ETTSMRXMRK�WYGL�E�TVS\]�QYWX�FI�HITSWMXIH�EX�XLI�VIKMWXIVIH�SJ½GI�SJ�XLI�'SQTER]�RSX�PIWW�XLER����LSYVW�FIJSVI�XLI�QIIXMRK��M�I��FIJSVI���TQ�on Monday 22 May 2017.

Signed this...................................................................................day

SJ����������������������������������������������������������

Signature................................................................................................

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P.O. Box 405391 Gaborone Botswana

Tel: 267 390 1654 Fax: 267 397 3441

Email: [email protected]

www.rdcpbw.comRDC Propert ies L imited