Overview | Annual Report 2021

Dear
Shareholders,

The Board of Directors is pleased to present the Integrated Annual Report of the Ascencia Group for the financial year ended 30 June 2021.

This report was approved by the Board on the 29 October 2021

Philippe Espitalier-Noël
Chairman

Frédéric Tyack
Chief Executive Officer

Our Reporting Suite

We are proud to present our corporate suite for the Integrated Annual Report 2021 for more clarity and transparency in our reporting.

Towards Integrated Reporting

We are pleased to present the IAR of Ascencia Group for the year ended 30 June 2021, whose main aim is to communicate with the providers of financial capital, while taking into consideration the needs of all our stakeholders.

Feedback

Your feedback is important to us and will help us enhance our reporting processes and ensure that we report on issues that matter to you.

Forward-Looking Statements

This report may contain forward-looking statements. Words such as ‘believe’, ‘anticipate’, ‘intend’, ‘seek’, ‘will’, ‘plan’, ‘could’, ‘may’, ‘endeavour’, and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent our judgements and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.

Board Responsibility Statement

The Board of Directors of Ascencia acknowledges its responsibility to ensure the integrity of the integrated report. The Board has accordingly applied its collective mind and, in its opinion, this integrated report addresses all material matters, offers a balanced view of strategy, and how it related to the organisation’s ability to create value in the short, medium, and long term. The report adequately deals with the use of and effects on the capitals and the manner in which the availability of these capitals is impacting on Ascencia’s strategy and business model.This report complies with the IIRC’s (International Integrated Reporting Council) integrated reporting framework and the GRI (Global Reporting Initiative) Standards: core options.

The report, therefore, follows all four Principles of GRI Standards which are, Stakeholder Inclusiveness, Sustainability Context, Materiality and Completeness. The quality of the report is ensured by following the principles of Accuracy, Balance, Clarity, Comparability, Reliability and Timeliness.

GLOBAL REPORTING INITIATIVE (GRI)

As from this year, we are also adopting the GRI standards which are the first global standards for sustainability reporting. It helps businesses, governments and other organisations understand and communicate their impacts on issues such as climate change, human rights and corruption.

INTEGRATED ANNUAL REPORT

Integrated Report in terms of six capitals which aim to facilitate the overall understanding of the Group by our stakeholders.

RISK MANAGEMENT REPORT

A detailed Integrated Risk Management Framework and an analysis of the Group’s strategic, financial, operational and compliance risks.

CORPORATE GOVERNANCE REPORT

Corporate Governance structure, committees and board performances remuneration and other matters relating to the good governance of the Group.

GROUP ANNUAL FINANCIAL STATEMENTS

A detailed set of Audited Group Financial Statements.

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

Information, proxy form, corporate resolution and FAQs, for shareholders to participate in the annual meaeting of shareholders.

NATURAL & HUMAN CAPITAL REPORT

It is a report about our organisation’s environmental and social performance and, for the first time, has been prepared in accordance to the GRI standards. It is also driven by the United Nations Sustainable Development Goals (SDGs), which helps to identify how our business influences the economy, environment and society.

Company Overview

Staying singularly focused

Our Journey Upwards

The creation of Ascencia in 2007 has shaped the retail industry by providing authentic and singular experiences within its seven malls. Ascencia has geared-up to meet these needs positioning itself as a true leader in the commercial real-estate sector on the island. Our strategy to acquire, renovate and constantly improve our assets has paid off.

By doing so, Ascencia has pioneered a new Asset class locally that provides sustainable value through cash yield and capital appreciation.

Today, Ascencia is the leading retail property company in Mauritius listed on the Official Market of the Stock Exchange of Mauritius. The Company’s vision is to create shopping and entertainment areas based on its customer promise: “Shaping Singular Places’’. This vision has governed the creation of seven shopping malls, each with its own identity and inspired by the history and authentic culture of Mauritius. The malls are namely Bagatelle Mall, Phoenix Mall, Riche-Terre Mall, Bo’valon Mall, Kendra, Les Allées and So'flo.

The primary investment objectives of the Company are to provide dividend income and long term capital gain to its shareholders.

As at 30 June 2021, the Group’s Investment property value and the market capitalisation stood at Rs 13.8bn and Rs 14.7bn respectively.

Leadership
Review

Adapting to disruption

Chairman's Message

AS A KNOWLEDGEABLE DISRUPTOR IN THE RETAIL SPACES, WE HAVE FOUND WAYS TO IMPROVE OUR OFFERING TO SATISFY EVER EVOLVING MARKET EXPECTATIONS. THESE STATEGIES ARE KEY TO ADRESSING SHIFTS IN CONSUMER HABITS."

Leadership
Review

Adapting to disruption

CEO's Message

THIS TEAM WILL CONTINUE TO ‘PLAY’ BECAUSE IT IS EFFORTLESS, ENJOYABLE, AND HIGHLY IMPACTFUL. IT IS WITH THIS MINDSET THAT WE CONFIDENTLY EMBARK ON THIS NEW TOMORROW."

Adapting to disruption

Chairman's Message

AS A KNOWLEDGEABLE DISRUPTOR IN THE RETAIL SPACES, WE HAVE FOUND WAYS TO IMPROVE OUR OFFERING TO SATISFY EVER EVOLVING MARKET EXPECTATIONS. THESE STATEGIES ARE KEY TO ADRESSING SHIFTS IN CONSUMER HABITS."

CEO's Message

THIS TEAM WILL CONTINUE TO ‘PLAY’ BECAUSE IT IS EFFORTLESS, ENJOYABLE, AND HIGHLY IMPACTFUL. IT IS WITH THIS MINDSET THAT WE CONFIDENTLY EMBARK ON THIS NEW TOMORROW."

Consolidating foundations, raising performance

Performance by Capitals

The 6 Capitals

The concept of the six Capitals transcends the basic needs of reporting; it challenges the way we think about creating value.
Throughout the report year, the impact of these Capitals is highlighted using the following icons:

Financial
Capital

Natural
Capital

Manufactured
Capital

Social and Relationship
Capital

Intellectual
Capital

Human
Capital

Making effective decisions

Corporate Governance Report

Ascencia Limited (‘Ascencia’ or the ‘Company’) is presently listed on the Official List of The Stock Exchange of Mauritius Ltd (SEM). The Company is also a public interest entity and is required to apply the eight principles of The National Code of Corporate Governance for Mauritius (2016) (the ‘Code’).

The timing of this Corporate Governance report coincides with the ongoing COVID-19 pandemic and you will have read in the leadership review report about the actions taken by the Company to withstand this crisis.

The Board’s collective values, experience and diversity have been crucial during these challenging times to guide the business through the crisis and beyond. Recognising the scale of the impact of COVID-19 and the ongoing significant levels of uncertainty, the Board had examined the fundamentals of the way Ascencia operates, challenged its assumptions and tested its beliefs, to find its optimum structure for the long term.

This year, besides it’s normal agenda, the Board focused on the following key matters:

• the approval of the Bond Programme amounting in total to Rs 2.5 bn;

• the migration of Ascencia to the Official List of The Stock Exchange of Mauritius Ltd;

• the acceleration of the Company’s progress on its sustainability commitments through LEED certification for its malls, starting with Phoenix Mall as a pilot project; and

• the introduction of Ascencia on the SEM Sustainability Index.

Making effective decisions

Risk Management

Dealing with the unforeseen

Risk Management

Dealing with the unforeseen

Risk Management Report

The retail business has been evolving over the past decades, accentuated by the evolution and development of digital technologies. Almost all parts of the world have witnessed changes in consumer behaviour and the nature of retail. Hence the reshaping of the retail landscape, for instance retail platforms powered by digital technology had to be adapted quickly, and it is expected to continue to support this change as consumers and retailers adjust to new normality.

During the year, the management team has demonstrated agility and proactivity in its strategic response to the risks faced in a period of uncertainty. The level of consumption contracted in the short-term and in view of a challenging economic context over the last financial year and foreseeable future, Ascencia has achieved a resilient performance by proactively managing their risks.

The Company was well prepared to navigate through the second COVID-19 national lockdown impacting the retail sector. The main strategic responses, measures taken and achievements during the financial year to mitigate the current risks, as well as opportunities seized were:

Ascencia has successfully raised funds through a bond issue as a response to the funding risk.
Successful negotiations for a Metro Station in Phoenix mall was an opportunity seized in the face of a decreasing footfall due to inconvenient road access to the mall.
A second tenant relief plan was provided to the valued tenants to bear the burden of the second national lockdown.
The launching of Decathlon and 42 Market Street increased the attractiveness of Bagatelle Mall.
Several sanitary measures were taken to reinforce the safety for tenants, shoppers and visitors in the malls. The COVID-19 certification (Safe Asset Group) has been obtained for Bagatelle mall.
The migration of the Company to the main stock exchange market in August 2021.

The clear strategy put in place through the above strong responses to the risks has created value and preserved the interest of various stakeholders such as shoppers, tenants, shareholders, strategic partners, providers of finance and service providers. The result for the financial year reflects the effectiveness of the measures taken.

Building trustful alignment

Opinion

We have audited the consolidated and separate financial statements of Ascencia Limited (the “Company”) and its subsidiaries (the “Group”) set out on pages 100 to 148 which comprise the consolidated and separate statements of the financial position as at 30 June 2021, and the consolidated and separate statements of profit or loss and other comprehensive income, consolidated and separate statements of changes in equity and consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate statements, including significant accounting policies.

In our opinion, the consolidated and separate financial statements give a true and fair view of the consolidated and separate financial position of the Group and the Company as at 30 June 2021, and of their consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Companies Act 2001 and the Financial Reporting Act 2004.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (the “IESBA Code") and other independence requirements applicable to performing audits of financial statements of the Group and the Company in Mauritius. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and in accordance with other ethical requirements applicable to performing audits of the Group and the Company in Mauritius. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Dear
Shareholders,