and Lions Cricket (Pty) Limited trading as bizhub Highveld Lions 2018 Annual reports Creating a culture of excellence 2018 Annual Reports

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1 and Lions Cricket (Pty) Limited trading as bizhub Highveld Lions 2018 Annual reports Creating a culture of excellence 2018 Annual Reports

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3 Our vision Our vision is to create unrivalled passion for cricket in central Gauteng. Our mission Our mission is to advance and transform cricket in central Gauteng by ensuring winning teams, nurturing club and schools cricket and offering a world-class experience at the Bidvest Wanderers Stadium. Our vision Our vision is to be the most successful cricket team with the biggest fan base in South Africa. Our mission Our mission is to advance and transform cricket in South Africa. We aim to achieve this by implementing a commercially sound business model that ensures winning teams supported by a passionate and engaged fan base. Annual Reports

4 Our approach to reporting This is the 2018 Annual Report of the Central Gauteng Lions and Lions Cricket (Pty) Ltd trading as bizhub Highveld Lions (the Companies). The Central Gauteng Lions is the custodian of all cricket activities in the greater Sedibeng, West Rand, Vaal and Johannesburg area and manages the Bidvest Wanderers Stadium. Lions Cricket (Pty) Ltd is a professional franchise team of which the Central Gauteng Lions is the majority stakeholder, the remaining shares are owned by North West Cricket. The stakeholders of the Companies are a cricket-loving community made up of staff, players, administrators and supporters from the various cricket clubs across all leagues. Other stakeholders include schools, universities, the City of Johannesburg, sponsors and commercial partners. The Companies are dedicated to ensuring good governance and transparent reporting. It is the intention of this report to provide stakeholders with an overview of the operations of the 2017/18 financial year. The content will speak to the achievements, challenges and opportunities that this period presented and the measures that the Companies have taken to ensure the sustainability of cricket in the region. It is separated into the report of the Central Gauteng Lions and the bizhub Highveld Lions. However, as part of our efforts to move towards a more integrated annual report, all information relating to performance in terms of manufactured, intellectual, human, social and relationship and natural capital of the organisations are incorporated into the performance review section of the Central Gauteng Lions Annual Report. Jack Madiseng President Gauteng players celebrate after dismissing Kagiso Rapulana of North West during the Africa T20 Cup match between North West and Gauteng at Senwes Park on 3 September 2017 in Potchefstroom, South Africa. (Photo by Sydney Seshibedi/Gallo Images) 4. Annual Reports 2018

5 Scope of the report The Companies have taken the decision to move towards integrated reporting in an effort to give a concise and more holistic overview of our business. The Report is focused on the period 1 May 2017 to 30 April It has been guided by the International Integrated Reporting Framework (IIRF) and the King Report on Corporate Governance (King III). The Cricket South Africa Presidential Plan for cricket in South Africa has also been taken into account in preparing this report. Materiality The Board acknowledges its responsibility for the integrity of the integrated annual report and it has applied its collective mind in the preparation and presentation of the Companies integrated annual reports. The Board is of the opinion that this report addresses all material issues and fairly represents the integrated performance of the Central Gauteng Lions and the bizhub Highveld Lions. The Companies acknowledge materiality as being a key concept of the IIRF. The following list of material issues, which will have an impact on the sustainability of our business, have been identified: Passionate support from fans Strong foundation for development of players Winning teams Good leadership and management Commercially sound company Assurance The Companies present the summary financial statements, which have been prepared from the audited annual financial statements as prescribed by the IIRF, and in the manner required by the Companies Act 71 of 2008 of South Africa. The full audited financial statements can be obtained from the Companies websites. Appointed external auditors, PwC expressed an unqualified opinion for the year in review. Forward-looking statements The content of this integrated annual report may contain forwardlooking statements which are statements related to expected future, not past, events. When reading the report, it should be taken into consideration that forward-looking statements often refer to our expected future business, financial performance and financial condition. This may include terms or references such as expect, aim, anticipate, intend, plan, believe, seek, see, will, would, or target. Readers of this integrated report are to read this as intention and not rely on these forward-looking statements as fact. The Companies do not accept any responsibility for updating any forward-looking statement. Approval of the annual integrated report Jack Madiseng President Greg Fredericks Chief Executive Officer The Audit and Risk Committee recommended the annual financial statements and the integrated annual report for approval to the Board of Directors. The Board of Directors confirmed that they have assessed the content of this report and have approved it for release to shareholders. Kagiso Rabada of the bizhub Highveld Lions during the RAM SLAM T20 Challenge match between bizhub Highveld Lions and Hollywoodbets Dolphins at Senwes Park on 19 November 2017 in Potchefstroom, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Annual Reports

6 Highlights from the year in review Bidvest Wanderers during the 1st KFC T20 International match between South Africa and India at Bidvest Wanderers Stadium on 18 February 2018 in Johannesburg, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Creating quality winning teams bizhub Highveld Lions players Reeza Hendricks, Aaron Phangiso, Wiaan Mulder, Dwaine Pretorius and Kagiso Rabada were selected for the Proteas; Hendricks and Phangiso played in the T20 format, Mulder and Pretorius played in the Test side, while Kagiso Rabada played in the ODI and Test formats. The Strikers performed well, progressing to the semi-finals of the Africa T20 Cup and runners up in the CSA Provincial One-Day Challenge (top of the log). Our amateur teams had a good season, with the U19 team winning the Coca-Cola Khaya Majola competition. The U17 team won all their games, and Bryce Parsons was named Momentum U17 Player of the Tournament. The U15 team won all their matches; the U13 and U16 Women and Girls teams also won all their games. Ensure that club and school cricket thrives Our Hubs and Regional Performance Centre, which continue to provide opportunities for previously disadvantaged cricketers, all made remarkable progress this year both in terms of winning ratios (more than 40 per cent) and in terms of improved facilities. A total of 53 people were employed to coach young players in disadvantaged areas and to prepare pitches for under-resourced clubs. The Central Gauteng Lions now have 70 percent of Premier A league clubs complying with CSA targets on transformational representation. There has been an impressive rise in the number of boys and girls offered bursaries by traditional cricketing schools in Gauteng. Maintain the Bidvest Wanderers reputation as an iconic stadium The Bidvest Wanderers Stadium obtained a Venue Safety Certificate in September 2017 after a rigorous evaluation process. Over R13.3 million was spent on stadium upgrades, including a new media centre and state-of-the-art LED video boards. The LED screens are the largest in-stadium screens in the Southern Hemisphere. We completed the installation of our lifts, enabling better access in the stadium. Further upgrades to the venue have been approved including upgrading the Upper Unity seating, renovating outdoor nets and improving the players change rooms and bathrooms. Grow our fan base Together with our partners, we raised R1.7 million (2017: R600,000) at the Momentum ODI PinkDay in aid of the Charlotte Maxeke Hospital Breast Care Clinic. The Momentum ODI PinkDay and KFC T20 International matches were sold out more than three weeks in advance. We recorded an increase in attendance at one-day domestic matches in the season. In keeping with our consolidation strategy, The Gauteng Cricket Board was renamed the Central Gauteng Lions in Our new lion logo better connects the association to the franchise team. To meet the religious needs of our fans we are now offering Halaal and Kosher meals, and there are prayer room facilities available at the stadium. 6.

7 Build a commercially successful and financially sustainable company We have retained the support of our key sponsors in spite of a weak economy and have entered into partnerships with Tile Africa (ablutions upgrade) and SA Fuels (fuel). Our office rentals and venue hire strategy is paying off, with eight suites rented this season, and revenue growing from R1.7 million to R2.1 million. Ensure good governance and operational excellence Workshops were held at Sun City to ensure that the management team has a solid understanding of key performance indicators. We are reviewing our organisational structure to ensure that we have the most effective structure in place to achieve our vision. Central Gauteng Lions was placed second in the CSA Incentive Scorecard process; we were awarded R800, 000 by CSA for this achievement. Our One-Day International hospitality products grew significantly from a budget of R2.5 million to actuals of over R3.8 million. We provided previously disadvantaged clubs with R870, 000 to maintain their facilities and other key initiatives. Lions celebrate the wicket of Temba Bavuma of the WSB Cape Cobras during the RAM SLAM T20 Challenge match between WSB Cape Cobras and bizhub Highveld Lions at Boland Park on 24 November 2017 in Paarl, South Africa. (Photo by Ashley Vlotman/Gallo Images Annual Reports

8 Samantha Schutte of Gauteng during the CSA Girls U19 Week Gauteng vs Western Province at NMU A ground on 11 December 2017 in Port Elizabeth, South Africa. (Photo by Michael Sheehan/Gallo Images) 8. Annual Reports 2018

9 Contents OUR BUSINESS AT A GLANCE 10 About the Central Gauteng Lions 11 About the bizhub Highveld Lions 11 Sponsors and partners 11 Business model 12 Funding model 14 Operating environment 16 Strategy 18 REPORT OF THE CENTRAL GAUTENG LIONS 20 Strategic objective #1: Ensuring Board governance and operational excellence 20 Our Board 21 Management team 23 Message from the President 24 Message from the CEO 26 Corporate Governance 29 Strategic objective #2: Developing quality winning teams 36 Strategic objective #3: Ensuring that club and school cricket thrives 40 Strategic objective #4: Maintaining the Bidvest Wanderers reputation as an iconic stadium 44 Strategic objective #5: Growing our fan base 48 Strategic objective #6: Building a commerically successful and financially sustainable company 56 Chief Financial Officer s report 57 Central Gauteng Lions financial statements 58 General information 59 Directors responsibilities and approval 60 Directors Report 61 Financial statements 62 REPORT OF THE BIZHUB HIGHVELD LIONS 68 Leadership review 70 Board of the bizhub Highveld Lions 70 Coaching staff 71 Message from the Chairman 72 Financial review 74 Chief Financial Officer s report 75 bizhub Highveld Lions financial statements 76 o Directors responsibilities and approval 76 o Directors report 77 o Financial statements 78 Stakeholder information 85 Notice of AGM 82 Contact details 86 Annual Reports

10 Our business at a glance The Central Gauteng Lions purpose is to nurture, develop and promote all our cricketing communities, enable transformation and produce highly competitive teams, whilst ensuring that our commercial cricketing facilities remain world-class and are passionately supported. 10. Annual Reports 2018

11 About the Central Gauteng Lions The Central Gauteng Lions The Central Gauteng Lions administers all cricket that is played in the West Rand, Sedibeng and Johannesburg Metro, including: Soweto, Kagiso, Johannesburg North, Alexandra, Wits and surrounding areas, Vaal, South East Area, Jeppe, Lenasia and Johannesburg Central. Tertiary institutions that are affiliated to Central Gauteng Cricket are Wits University, University of Johannesburg, Vaal University of Technology and Wits Technikon. The Central Gauteng Lions is the custodian of the Bidvest Wanderers Stadium, South Africa s premier cricketing venue located on Corlett Drive, Johannesburg. The venue has hosted many memorable matches including major events like the ICC 2003 World Cup, ICC Champions Trophy, ICC World T20 and the 2009 Indian Premier League (IPL). It has also hosted memorable non-cricket events such as the 2010 FIFA World Cup friendly match between Portugal and Mozambique. The Gauteng Cricket Board, now known as the Central Gauteng Lions, was formed in 1992 following the unity process in South African Cricket in June Although there was an official unification, cricket in the province remained divided. In 2010 the Gauteng Cricket Board was placed under administration after the Langa Commission of Inquiry. The new Board and Memorandum of Incorporation currently speaks to three groupings from the constituencies (namely the Previously Advantaged Clubs, Concerned Cricket Fraternity and the Black African Cricket Clubs) and has been changed to align with that of Cricket South Africa. In May 2018 the Gauteng Cricket Board underwent a total rebrand and was renamed as the Central Gauteng Lions, making use of a name that has a clear association with Johannesburg s franchise team, the bizhub Highveld Lions whereafter SASCOC and Cricket South Africa were tasked to ensure that all their affiliates align with the geopolitical demarcation of their provinces. One of the consequences was that the Gauteng Cricket Board had to change its name, as it does not represent the whole Gauteng Province. In future, Central Gauteng Lions will have three substructures, namely, Johannesburg Metro, Sedibeng and West Rand. After the Langa era, the non-independent director of the Board will come from these substructures. Organisational structure The Central Gauteng Lions is one of 12 affiliates of Cricket South Africa. Cricket South Africa comprises six franchises one of which is the bizhub Highveld Lions. International Cricket Council Cricket South Africa 12 Affiliates 6 Franchises Central Gauteng Lions bizhub Highveld Lions About the bizhub Highveld Lions The bizhub Highveld Lions is one of six professional cricket franchises in South Africa. The franchise is based in Johannesburg with a second home in Potchefstroom. The team plays in two national, televised competitions (Momentum One Day Cup and Ram Slam T20) as well as the non-televised but highly publicised Sunfoil 4-Day Series. The franchise structure The Central Gauteng Lions is the custodian of the Bidvest Wanderers Stadium and the majority shareholder of the bizhub Highveld Lions, the remaining shares are owned by North West Cricket. 45% North West Cricket Senwes Park bizhub Highveld Lions Central Gauteng Lions 55% Bidvest Wanderers Stadium Sponsors and partners The naming rights to the Wanderers Stadium (also known as the Bullring ) are currently owned by Bidvest with Sun International as the lifestyle partner. Sponsorship is also sought for school s cricket (currently vacant), township cricket (Sunfoil), amateur clothing (Fain), professional clothing (Sedgars/BAS) car/car rental (Imperial Toyota), drinks (Amalgamated Beverage Industries), malted beverage and flavoured alcoholic drinks partner (AB Inbev), Fuel partner (SA Fuels), wine partner (Durbanville Hills / Distell) and club cricket (currently vacant). The bizhub Highveld Lions also offers franchise naming rights, the current sponsor is bizhub from Konica Minolta, with 947 (media partner) as co-sponsors. SunBet are the associate sponsors and Sun International is the lifestyle partner. Innovative partnerships to ensure ongoing world-class facilities at Bidvest Wanderers Stadium have been entered into. Tile Africa is one such partner, the company will be working with stadium management to upgrade the washrooms at the ground floor to showroom standard. Other sponsor/barter deals are in place with ACS Pharma/UV Zone (sunscreen products) and Shrey (helmets). General Manager Chief Executive Officer Annual Reports

12 Our business model The Central Gauteng Lions aims to grow and transform cricket in Gauteng INPUTS To achieve our aim we rely on: Income-raising activities (financial capital) Broadcast and media rights (CSA) Naming rights, sponsorships and advertising Value-in-kind (VIK) funding Other funding Ticket revenue incl. season packages Hosting fees International cricket events Hospitality and suite revenue Non-cricket venue rental Our assets (manufactured capital) Bidvest Wanderers Stadium Wanderer s Sports Medical Centre Elite Functioning Conditioning Centre Offices bizhub Highveld Lions Our brands (intellectual capital) Central Gauteng Lions The bizhub Highveld Lions The Bidvest Wanderers Stadium (Momentum ODI PinkDay and other marketing initiatives) Our people (human capital) Ethical and experienced leadership and management Our highly experienced Board Our employees Our coaches Our players BUSINESS ACTIVITIES We undertake the following day-to-day activities: Commercial activities Secure sponsorships Sell advertising rights Manage international and domestic cricket events Other commercial initiatives e.g. office rental and nonsporting events Stadium operations Operate a financially viable stadium Maintain our world-class cricket facility Amateur cricket development Raise awareness of cricket at a grassroots level Identify and nurture young talent Provide resources and assistance to emerging cricket clubs and schools Domestic cricket development Manage the bizhub Highveld Lions team Manage the Gauteng Strikers Brand development Market the Bidvest Wanderers Stadium experience Promote the bizhub Highveld Lions team Promote cricket as an inclusive sport Amateur cricket development and community upliftment (social and relationship capital) CSI initiatives e.g. Momentum ODI PinkDay, Ekasi Challenge Schools, clubs, our community and SRSA Minimising our impact on the environment (natural capital) Water conservation 12. Annual Reports 2018

13 OUTPUTS Through our activities we aim to achieve: Sustainable revenue (financial capital) Winning teams and a world-class stadium (manufactured capital) Strong sustainable brands (intellectual capital) OUTCOMES In doing so we enable: Cricket excellence A passion for cricket in Gauteng Social cohesion through inclusive sport A wider, more diverse talent pool A robust organisation (human capital) Better depth of talent (social and relationship capital) A greener stadium (natural capital) Lwazi Mngcangisa of Entuthukweni Primary School bowling during the KFC Mini-Cricket Provincial festival at Queens High School on 2 September 2017 in Johannesburg, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Annual Reports

14 Central Gauteng Lions funding model The Central Gauteng Lions is a non-profit company that relies on various sources of funding in order to promote, administer, develop and coordinate cricket in Gauteng and to manage and market the Bidvest Wanderers Stadium. SOURCES OF FUNDING Central Gauteng Lions total revenue for 2017/2018 was R58 million with other income streams of R6.8m. This revenue is split up as follows: Source R (million) Source R (million) Stadium revenue (match day and non-match day) 36.1 Cricket development Major matches - international 6.10 CSA Funding Domestic fixtures 0.87 Sunfoil 0.71 Naming rights 7.25 Lotto 0 Perimeter advertising 3.87 Other 0.66 Suite revenue 6.89 Season tickets 1.26 Non-match day venue hire 0.63 Hospitality 3.40 Marketing assistance from CSA 0 Catering rights 0.55 Rental income - offices 2.55 Barter deals 1.16 Sundry income Annual Reports 2018

15 HOW WE USE THE FUNDS RECEIVED Other revenue is split as follows: Source Finance Interest Shared services Other R (million) Amateur cricket development R2,740,571 for clubs R828,242 to women and girls cricket R1,613,963 to Hubs R404,447 to KFC Mini cricket R887,396 to Umpires R377,325 to Scorers R57,126 to Coaches R2,519,301 to Gauteng Strikers R1,390,234 for youth and schools cricket R5,999,562: for administration to support amateur cricket development efforts Central Gauteng Lions operational costs R46.61 million allocated to operational costs R17.94 million allocated to salaries 55 permanent staff and 59 contractors (head office staff and people to service the hubs and clubs) Stadium operations R5.87 million allocated to maintaining the Bidvest Wanderers Stadium R4.6 million depreciation of the stadium R4.99 million allocated to utility costs (electricity & water) The Gauteng U19 team during the Coca-Cola Khaya Majola Week 2017 Registration at Wits Jubilee on December 16, 2017 in Johannesburg, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Annual Reports

16 Our operating environment The Gauteng Central Lions ability to create value is determined by our operating environment, and our response to the resulting risks and opportunities. Cricket is a highly competitive environment; it is affected by international cricketing trends as well as local economic conditions. These are the key challenges that inform our strategy which is detailed on pages 18 and 19. Fluctuating match schedules The postponement of the T20 Global League resulted in loss of venue rental revenue and other revenue generating opportunities being postponed. Further, the delay in the confirmation of the India tour to South Africa resulted in lower suite revenue. Lack of required support from government The local government has failed to maintain cricketing facilities in central Gauteng resulting in the Central Gauteng Lions having to invest in these facilities. The City of Johannesburg continues to charge high utility fees for the Bidvest Wanderers Stadium with no agreed rebate based on high volume usage, and has not waived traffic services fees on match days as previously promised. Funding shortfall National Lottery funding was not granted due to funding being allocated to the Commonwealth Games team. The lack of funding affected cricket development and the investment into local cricket facilities. Weak local economy negatively impacts investment in sports We have retained key sponsors and partners, but securing new funding has been challenging in a weak economic environment, which is further exasperated by increasing competition for disposable income from other sporting and lifestyle options. Poor fan turnout Zoning of the stadium impacting nonmatch day revenue opportunities A lack of national profiling of the domestic cricket leagues and the poor performance of the bizhub Highveld Lions impacted ticket revenue. This remains something that fans show a tremendous interest in, and as such an alignment of the brand strategy on a national level will go a long way towards unlocking the potential of brand love for the bizhub Highveld Lions. The Bidvest Wanderers Stadium is within a residential zone and support from the residents associations for non-cricket events has not been forthcoming. The Central Gauteng Lions are however exploring options for the maximisation of this revenue stream despite these barriers. 16. Annual Reports 2018

17 Bidvest Wanderers during the 4th Momentum ODI match between South Africa and India at Bidvest Wanderers Stadium on 10 February 2018 in Johannesburg, South Africa. (Photo by Sean Brand) Annual Reports

18 Our strategy The Central Gauteng Lions has identified key strategic priorities to ensure it meets its vision of creating a passion for cricket in Gauteng that is unrivalled. Our strategic priorities are to: We will achieve this by: Develop quality winning teams by attracting, developing and retaining the best talent, ensuring we meet our transformation goals Ensuring that the bizhub Highveld Lions occupies the top positions on the logs Producing players for the national team Setting up targets for our amateur cricket focus areas Creating a clear programme to source players in clubs and schools, and progress their careers after school Ensure that club and school cricket thrives (especially in disadvantaged areas) Developing self-sustaining, well maintained cricket clubs in previously disadvantaged areas Fostering a great cricket culture with a strong cohort of black players by increasing the number of black cricket playing schools Ensuring excellent quality coaching at club and school level Having black clubs in the Premier A and B leagues Maintain the Bidvest Wanderers reputation as an iconic stadium Ensuring an unparalleled stadium experience Continuing to upgrade and modernise the stadium Grow our fan base Building strong brands Promoting our already successful events such as PinkDay Creating an electric atmosphere at our events through offering excellent entertainment Build a commercially successful and financially sustainable company Maximising the corporate opportunity in Gauteng Growing the base of funding for amateur cricket initiatives Creating multiple revenue streams, thereby ensuring profitability Ensure good governance and operational excellence Developing a clear strategy, and appropriate organisational structure to execute this strategy Electing appropriate Board representatives Having clear BB-BEE targets driven Developing a performance drive culture of excellence 18. Annual Reports 2018

19 The progress we have made: Following a disappointing season for the Lions, we have implemented a turnaround strategy to address on field performance and to ensure the best leadership and coaching staff Five players were selected for the national team All of the amateur cricket areas have targets in place, which are based on an annual score card system. The focus areas for improvement are broad and include the following; diversity targets, training and coaching targets and administration targets Strikers progressed to the semi finals of the Africa T20 Cup, and were runners up in the CSA Provincial One-Day Challenge (top of the log) The U19 Gauteng team won the Coca-Cola Khaya Majola week The U15 and U17 teams won all their games 23 players participated in our Provincial Academy programme this year, which is producing good results The HUBS and RPC programme is doing well. Sedibeng was added as a new Hub bringing to six the number of Hubs, over and above the RPC centre in Soweto An indaba was held with traditional boys schools in the province to identify opportunities to develop black cricketers A number of schools received funding for the construction of nets or artificial middle strips from Cricket South Africa, helping improve their facilities 70 per cent of Premier A clubs are conforming with CSA targets on transformation and the balance have put in a plan with a set timeframe to meet these targets We currently have two black clubs and four clubs of colour, out of a total of 12 teams, in the Premier A league. In the Premier B league there are six teams of colour out of a total of 12 teams The Gauteng schools had very successful U15, U17 and U19 National Weeks Upgraded the media centre at a cost of R2.6 million to ensure a world-class experience for media R7.5 million was invested in LED video boards to improve the fan experience Improvements were made to address transport challenges including the park and ride facility and the use of Tuk-Tuks to transport fans from parking areas. The Uber drop off zone also provided easier drop and go options The Momentum ODI PinkDay raised R1.7 million, and the event was sold out more than three weeks in advance The Gauteng Cricket Board was renamed the Central Gauteng Lions in 2018, better connecting the association to the franchise team We surveyed over 1000 fans about their experience at the stadium Engaged with various organisations to help support black clubs financially Maintained sponsorships in a tough economic environment Eight suites rented out for office purposes, revenue grew from R1.7 million to R2.1 million Awarded R800, 000 by CSA following the CSA incentive Scorecard process Hospitality sales from One-Day International days grew from a budget of R2.5 million to over R3.8 million Provided R870, 000 to previously disadvantaged clubs for facilities maintenance programmes Board charter is regularly refined to ensure all board roles are clearly defined and that we have the right blend of skills and expertise in place We are reviewing our organisational structure Annual Reports

20 Strategic objective #1: Ensuring Board, governance and operational excellence. The Central Gauteng Lions is focused on ensuring good governance and operational excellence, resulting in a performance-driven culture. 20. Annual Reports 2018

21 Our Board Non-Independent Directors Jack Madiseng (President) Greg Fredericks (Chief Executive Officer) Anne Vilas (Vice-President) Mohammed Majam (Vice-President) Mike Sacher (Treasurer) Brian van Rooyen Koketso Muller Ntsongo Sibiya Honorary Life President Essop Pahad, Joseph Pamensky, Sam Nontshinga Honorary Life Vice President Goolam Rajah, Haroon Nosarka, Mark Henning, Raymond C White, Sam Mochaki, Thozamile Jayiya, Donald Mackay-Coghill, Nomntu Peter, Abdullatief Barnes Annual Reports

22 Independent Directors David Terbrugge Fatima Habib Matodzi Ratshimbilani Simphiwe Dzengwa Ziyanda Buthelezi Non Independent Alternate Directors Yasin Manack Batlhalefeng Lesele Mark Patterson Independent Alternate Director Garth Le Pere 22. Annual Reports 2018

23 Our management team Greg Fredericks (Chief Executive Officer) Barry Whitfield (Chief Financial Officer) Cyril Martin (Stadium Manager) Andra Ferreira Nel (Marketing & Corporate Communications Manager) Colin Gxowa (Amateur Cricket Manager) Greg was appointed Chief Executive Officer of the Central Gauteng Lions in October Greg has extensive sports administration experience; he has served as the President of the Board for Border Cricket, Border Hockey, Border Volleyball and Border Senior Schools Sports Union. Greg is passionate about youth sport and is a past President of the United Schools Sports Association (SSASA) and SA Volleyball. Greg played an important leadership role in the 2010 FIFA World Cup, and after the event he was the General Manager of the 2010 FIFA World Cup Legacy Trust. Greg spent ten years in the Department of Sports and Recreation (serving as the Acting Director General in 2007) under Minster Steve Tshwete, who was responsible for successfully applying for South Africa s readmission to the International Cricket Council (ICC). Greg has a longstanding passion for sport, having played cricket, rugby and hockey at a provincial level. Barry was appointed Chief Financial Officer of Central Gauteng Lions in November In his capacity as CFO he is responsible for the financial management of the Central Gauteng Lions. Prior to joining the Central Gauteng Lions, Barry spent three years at the England and Wales Cricket Board (ECB) in the professional game finance team where he gained valuable international cricket administration experience. Before this he worked for three years in various roles at KPMG, which included numerous secondments to the Office of the Auditor General. His focus at the Central Gauteng Lions is on ensuring the profitability of the business by balancing revenue streams and ensuring that sponsor funding is used in the best way possible. He is committed to helping the Central Gauteng Lions maximise its primary asset the iconic Bidvest Wanderers Stadium. Barry graduated from the Nelson Mandela Metropolitan University thereafter qualifying as a chartered accountant. He is a keen sportsman, having played provincial golf for Border. Cyril was appointed Central Gauteng Lions Stadium Manager in His primary responsibility is ensuring the world-class status of the Bidvest Wanderers Stadium. He has managed three of South Africa s premium stadiums during his career, including the Bidvest Wanderers Stadium, the Cape Town Stadium and the Newlands Stadium. While his primary responsibility has been ensuring that event days run seamlessly, he is also experienced in facilities upgrades. Cyril has managed the stadiums over many significant large-scale sporting events including the Indian Premier League (IPL) in South Arica in 2009, the 2003 Cricket World Cup, the Inaugural T20 World Cup (2007) and the 2010 FIFA World Cup. Cyril was a director of Western Province Cricket (Pty) Ltd from Prior to his 14-year tenure at Newlands Stadium, Cyril was the Head of Department (Accounting) at Heathfield High School. He is a passionate cricket fan and was a selector for Western Province Cricket Association. Cyril holds a Level 3 coaching certificate with Cricket South Africa, a Bachelor of Commerce from the University of South Africa and a Diploma in Sports Management from Damelin (with distinction). Andra was appointed the Marketing and Corporate Communications Manager of the Central Gauteng Lions in She is responsible for all commercial revenue management, rights delivery, strategic business insights and brand building for the Central Gauteng Lions, the bizhub Highveld Lions and the Bidvest Wanderers stadium. Upon graduating with a BSc in Consumer Sciences with Business Management, she was appointed as North-West Cricket s Media & Events Coordinator before moving to the Central Gauteng Lions. Andra has launched various successful public relations campaigns including the highly successful Momentum ODI PinkDay, which she introduced to the Central Gauteng Lions. She has an excellent track record of sponsor retention and delivery on sponsorship rights packages. Andra completed the SuperSport Managers Programme (Wits Business School), her MBA Degree and is currently in her second year of the Harvard Manage Mentor course. Colin was appointed Central Gauteng Lions Cricket Service Manager in Prior to this he was the Central Gauteng Lions Youth and Schools Administrator. His focus is on cricket development in Gauteng and on ensuring a strong pipeline of future talent. The Central Gauteng Lions is recognised for running the most effective pipeline programme in the country, and is producing players for national selection. A former cricketer, Colin has been involved in cricket coaching since his student days. In the 1990s he coached in the Gauteng townships but, to fund his studies, he took up a position as a cricket coach at Queens High School in Bedfordview, where after his studies he was appointed to Head of Sport (2002 to 2011). He was also involved in managing Gauteng U15A team (2002 and 2003), coaching Gauteng U17A team (2004 to 2006) and Gauteng U19A team (2007 and 2008). He has had the opportunity to work with players like Hardus Viljoen, Omphile Ramela, Temba Bavuma, Dominic Hendricks and Devon Conway amongst others. He remains passionate about bringing the love of cricket to the townships and to ensuring that previously disadvantaged children have access to quality coaching, facilities and the support needed to become a professional cricketer. Annual Reports

24 Message from our President At the Central Gauteng Lions we are committed to creating a culture of excellence, both on and off the field. While the 2017/2018 season was not without its challenges in terms of achieving this goal, I am proud of the following excellent achievements: A record-breaking Momentum ODI PinkDay in terms of the scope of the campaign and funds raised (R1.7 million, 2017: R ) Winning the Coca-Cola Khaya Majola competition, the premium U19 cricket week Launching our refurbished world-class media centre Our Hubs and RPC programmes are doing very well We are making good progress in reviving cricket in former Model C schools The Strikers team reached the finals of the CSA One-Day Challenge Our Gauteng Central Lions provincial junior teams are performing well Our physiotherapist being a part of the Proteas technical team Two of our employees form part of the Cricket South Africa organisational structure We did however come up against a number of unexpected hurdles during the 2017/2018 season, not least of which was the cancellation of the T20 Global League, which had a significant impact on fan turnout at stadiums. It also hampered our ability to bring in non-match day revenues as the stadium had been booked out for the league and it was too late to reschedule other events in its place. While the Bidvest Wanderers Stadium continues to be one of the best cricket stadiums in the world, the level of facilities in our townships remains of grave concern. If we are to realise our mission of advancing and transforming cricket in Gauteng, this has to start at the grassroots level for it to be realised. The ageing infrastructure at this level requires substantial investment and this is not something that the Central Gauteng Lions can handle alone. It requires effective partnership with government to improve standards. Unfortunately the bizhub Highveld Lions had another disappointing season. Having a winning team is important for our success on all levels and improving the performance of the Lions is an area we are really focusing on. I am confident that the strategy put in place by the Board of Directors to turnaround the franchise team s fortunes will yield results in the upcoming season. Delivering on our strategy In March 2016 the Central Gauteng Lions put in place a clearly defined three-year strategy and I am pleased to report that we are progressing well with our delivery on this strategy in 2017/2018. In line with our commitment to good governance, we have refined our committee structure to ensure the progress of our subcommittees. We also completed an annual board review and advertised the vacancy for an Independent Director. Further, we have also adjusted our Memorandum of Understanding so that it is more closely aligned with Cricket South Africa. We also changed our name to the Central Gauteng Lions, which now more accurately represents the areas that we serve. We remain committed to operational excellence, and have put in place tangible outputs to measure our management team s efforts. Jack Madiseng We held staff workshops at Sun City to ensure that there was a solid understanding of the expected deliverables. We are also in the process of reviewing our organisational structure to ensure that we have the most effective structure in place to achieve our vision. We continue to build a commercially successful company and are proud to have retained the support of our key sponsors in spite of a weak economy, which continues to impact investment in sport. Furthermore, Tile Africa has come on board as a partner for all our ablutions. This has potential to enhance our facilities investment by +-R300K per year. We have also retained SA Fuels as partner for fuel, which powers our diesel generators. Further, we have established a relationship with DJ Coaching, a renowned private cricket coaching academy already operating in Johannesburg to establish the Lions School of Cricket as an additional revenue stream for the Central Gauteng Lions. We are also engaging with various companies to help support black clubs financially. I am proud of the efforts being made by the team to identify opportunities to increase revenue including office rentals and hire. In our efforts to continue to maintain the Bidvest Wanderers as an iconic stadium, we delivered on all our capital expenditure projects for the year. These included the refurbishment of our scoreboard, media centre, CCTV cameras and our indoor nets. We also developed a prayer room. We achieved a high score for health and safety and received a Safety at Sports And Recreation Events Act (SASREA) certificate. We continued in our efforts to develop quality winning cricket by focusing on pipeline management and transformation at our elite cricket playing schools. In terms of pipeline management, I am impressed with the performance of our U19 team, which won the Coca-Cola Khaya Majola competition. Further, our captain was appointed as the SA Schools captain. On the transformation front, we held an Indaba with the elite schools to discuss and map the way forward. In our efforts to ensure that club and school cricket thrives, I am pleased to report that our mini-cricket seminar and festival went well, with all game results captured on web cricket. Our Hubs and Regional Performance Centre (RPC) programmes continue to do well and this year Cricket South Africa (CSA) added Sedibeng as a hub in our region. We continue to grow our fan base evidenced by the fact that our 24. Annual Reports 2018

25 Momentum ODI PinkDay and KFC T20 International matches were sold out more than three weeks in advance. Our social media activity has also dramatically increased, helping drive engagement with our fans. of excellence at the Central Gauteng Lions, supported by an experienced and committed Board that ensures that we remain on course. Conclusion Culture is the glue that binds an organisation together. It s also the hardest thing for competitors to copy and, as a result, it can be a lasting source of competitive advantage. I would like to thank Greg Fredericks and his management team for their continued efforts to create a culture Jack Madiseng Matt McGillivray of Gauteng during the Africa T20 Cup Semi Final match between Hollywoodbets KwaZulu-Natal and Gauteng at Diamond Oval on 24 September 2017 in Kimberley, South Africa. (Photo by Carl Fourie/Gallo Images) Annual Reports

26 Message from the Chief Executive Officer It is my pleasure to report on the operations of the Central Gauteng Lions and Lions Cricket for the 2017/2018 financial year. Our decision to rebrand the Gauteng Cricket Board as the Central Gauteng Lions was unanimously accepted by the clubs. This was in response to a directive from the Department of Sport and Recreation that Cricket South Africa ensure that all its affiliates align with the geopolitical demarcation of their provinces. We believe that our new name now more accurately reflects the geographical area we cover. It also provided us with the opportunity to better unify our brands. For many, we have always been the Lions family and now our new logo and name will present this connection even better. While we were excited to launch our new brand at the end of the season, it followed a challenging year where our financial performance was negatively impacted by our macro economic climate. The postponement of the Global T20 League significantly impacted our revenue, and we were unable to replace this significant event at short notice. Furthermore, the bizhub Highveld Lions cricket team performed poorly. Whilst it was one of the most difficult financial performance years under my tenure, I am pleased to report that we had our most successful Momentum ODI PinkDay ever, raising R1.7 million for charity, in comparison to R600,000 the previous year. Momentum ODI PinkDay has become a significant event in the national events diary, and this year it sold out in record time nearly a month in advance. We also saw increased attendance at domestic one-day matches during the period, testament to the potential that fans have to love the brand and the passion our fans feel for watching cricket at the iconic Bidvest Wanderers Stadium. Improving facilities and fostering our pipeline Ensuring that club and school cricket thrives remains a key strategic priority for the Central Gauteng Lions; we firmly believe that sport is critical in changing society for the better. In order for cricket to thrive our players need access to quality facilities, yet many of the facilities at clubs are in a poor state of disrepair. Whilst it is the responsibility of government to maintain these facilities, there has been little action aligned to doing so. Given the urgent need to improve facilities, our Board approved a special transformation fund of R870,000 to improve the facilities at the clubs. As part of our efforts to transform cricket at a grassroots level, we have revitalised cricket at five predominantly black former Model C schools and are excited about the prospects for our pipeline. We have also put in place a Junior Committee; they are tasked with working with clubs to ensure that there are more junior teams at the clubs. Through our university partnership programme, we are in discussions with the University of Johannesburg and Wits to help facilitate scholarships for talented players to study at these institutions. I am also pleased to report that a further 44 of our schools participated in KFC Mini Cricket tournament in the season, bringing the total numbers of schools participating to 263. We also hosted various cricket festivals during year; these events and tournaments are critical for creating a passion for cricket in Gauteng and helping us foster cricket at a grassroots level. A good season for our amateur teams All our Amateur and Women and Girls teams did well in the year, testament to their hard work and unwavering commitment to excellence. Further, the Strikers had a better season, which saw them qualify for the semi-finals of the Africa T20 Cup and playing in the finals of the CSA Provincial One Day Challenge (50 overs). Turning around the bizhub Highveld Lions The Lions had another disappointing season and we are cognisant of the need to deal with this as a matter of urgency. We recognise that the team s performance directly impacts our commercial viability and our ability to attract and retain talent; as such we implemented a turnaround strategy to address this. The strategy will not only address on-field performance, but will also ensure we have the best leadership and coaching staff in place in order to deliver on our strategy of developing quality winning teams. This said, we are delighted to welcome Temba Bavuma back to the Lions after a season in Cape Town, Temba is a special player with remarkable skills and we believe he will bring great value to the team. Financial matters Greg Fredericks Revenue during the period was severely impacted by the postponement of the T20 Global League during what would normally be a very busy period. Not only did we lose revenue associated with the League, we were also unable to host our Christmas carols, which further negatively impacted our balance sheet. We were also disappointed to miss out on National Lottery funding. Previously we secured R2.6 million in funding, funds which were instead channelled to support South Africa s Commonwealth Games team. 26. Annual Reports 2018

27 Committed to good governance We regularly refine our Board Charter to ensure all Board roles are clearly defined. Through this process we also ensure that we have the right blend of skills and expertise at a Board level to ensure its optimum governance levels. Our five independent directors provide external guidance and ensure we achieve the highest standards of good governance. Obituaries I am saddened to have to write about the passing of a former great contributor to cricket development in Soweto, Gauteng. Jasua Lekgoa, who was regarded as one of the finest Soweto Cricket Development coaches and managers to come out of the programme passed away this season. Jasua was involved in the Soweto Cricket Development programme where he coached from U11 level through to U19. He was always willing to work with all individuals keen to play cricket, inspiring them to be the best they can be whilst leading them every step of the way. Lekgoa also served on many sports committees such as the Ken Viljoen Cricket Week-Transvaal Committee, the Gauteng Province and High School Cricket Committee, Soweto Schools Cricket Committee, Primary and High School Athletics Committee and Jabavu Cluster Athletics. His charitable nature and willingness to get involved in as many community projects as possible was an inspiration to many. In January 2018, Mr. Paris Pule Maishoane was laid to rest in Atteridgeville, Tshwane. Bra P as he was affectionately known in Rockville, Soweto, was the first caretaker and groundsman at the Soweto Cricket Oval (Elkah Stadium). He was a prolific football player that gained the respect of many of his opponents in Soweto and surrounding areas. As a member of the Moroka Sports Council, he was involved in the planting of grass in the space that was allocated for cricket within the Elkah Sports Precinct. The building of the clubhouse for the Soweto Cricket Club (SCC), which was officially opened and unveiled by then Minister of Sport and Recreation, Mr. Steve Tshwete, on the 1st December 1994, was a project that he owned and he was instrumental in recruiting the skilled workers that built the facility. He has prepared pitches for historic games at the Soweto Cricket Oval featuring many cricketing greats, the likes of Sir Gary Sobers, Sunil Gavaskar, Sir Richard Hadlee and Brian Lara. The historic S.A. Invitational XI vs. England four-day match, was also played under Bra P s curatorship from October 1995, where late former President Nelson Rolihlahla Mandela surprised everyone by arriving to greet both teams at the Soweto Cricket Oval. Bra P was fondly admired for his work ethic, and the respect he commanded in his community. With thanks to our stakeholders I wish to thank our partners and sponsors for their ongoing commitment and support. My appreciation also goes to Cricket South Africa, the Board, my management team, employees and peers in other affiliates for their support during the year. Whilst the past two seasons have not been smooth sailing for the Central Gauteng Lions, we look to the future with renewed focus. Greg Fredericks View of Wanderers during day 2 of the 4th Sunfoil Test match between South Africa and Australia at Bidvest Wanderers Stadium on 31 March 2018 in Johannesburg, South Africa. (Photo by Sean Brand) Annual Reports

28 Rassie van der Dussen working with the children during the KFC Mini-Cricket Provincial festival at Queens High School on 2 September 2017 in Johannesburg, South Africa. (Photo by Sydney Seshibedi/Gallo Images) 28. Annual Reports 2018

29 Corporate governance The corporate governance statement outlines the Company s key principles and governance practices, as well as commitment to informing internal and external stakeholders through transparent and comprehensible disclosure. The Directors regard corporate governance as critical to the success of the Company s business and stakeholders interests and fundamental in discharging their stewardship responsibilities. The Board strives to provide strong leadership, strategic direction and control, and a productive environment that can sustain the delivery of value to the Company s members. The Directors are committed to applying the principles necessary to ensure that the highest standards of governance and accountability are practiced in the conduct of the Company s business. These principles include honesty, transparency, integrity, discipline and accountability during business conduct. Each Director brings a depth of experience and independence of judgment in his or her role as a Board member. The Company subscribes to the values expressed in the Code of Corporate Practices and Conduct as set out in King IV and has already implemented several aspects of the Code. Name Change In keeping with the directive to align our structures with the geopolitical demarcations of the province, the Gauteng Cricket Board was renamed the Central Gauteng Lions in the year under review. The new name represents the overarching cricket body for the West Rand, Sedibeng and the City of Johannesburg. The Board Board of Directors Corporate governance within the Company is managed and monitored by a unitary Board of Directors and various Board sub-committees. The key principles underpinning the governance of the Company are to ensure that the Company conducts its business as a responsible corporate citizen through the development and implementation of strategies and policies that are integrated into every area of its operations and to carry out the dictates of the Langa Commission agreement until a new board is elected and operates according to an amended Memorandum of Incorporation (MOI) without the transitional period arrangements in accordance with the Langa recommendations. Board accountability In accordance with its charter, the Board is responsible for: Approval and adoption of strategic and annual business plans, the setting of objectives and the review of key risk and performance areas Approval of commitments outside the authority delegated to executive management Review of management s performance against set objectives at regular Board meetings Determination of overall policies and processes to ensure the integrity of the Company s management of risk and internal control Approval and adoption of Group policies, programmes, and procedures in relation to safety, health, economic, social and environmental impacts, as well as remuneration and benefits Adoption and monitoring of the Code of Conduct and related matters Approval and adoption of statutory communications to stakeholders Appointment of the CEO and management of the company Approval of the appointment and removal of the directors, the auditors and the Company Secretary While retaining overall accountability, the Board has delegated authority to the Chief Executive Officer to run the day-to-day affairs of the Company. The Board has also created sub-committees to enable it to discharge its duties and responsibilities properly and to fulfil its decisionmaking process effectively. Each committee acts with appropriate terms of reference. Board committees may take independent professional advice at the Company s expense when necessary. Composition of the Board The Board comprised of seventeen directors as of 30 April The directors were: Five independent directors Seven non-independent directors One executive director (ex Officio) One alternate independent director Three alternate non-independent directors Jack Madiseng is the President and Chairman of the Board. Gregory Fredericks is an Executive Director and the Chief Executive Officer. The roles of the President/Chairman and Chief Executive Officer are not vested in the same person and there is a clearly outlined division of responsibilities. One independent director resigned during 2017 and was replaced in April 2018; this was through a process conducted by an independent nominations committee appointed by the Board. The Board received a slate of independent directors from the Nominations Committee for their consideration and this appointment was approved. One nonindependent director resigned in July 2017 and was replaced by a new member in July The names of the directors as on 30 April 2018 are set out on page of this report. The Board ensures that no individual has unfettered powers of decisionmaking and authority and ensures that stakeholder interests are protected. The Board considers that there is an appropriate balance of knowledge, expertise and collective experience among the nonexecutive directors. Any new appointments to the Board will involve a formal and transparent process and are a matter of consideration for the full Board and ratified by the Members Council, assisted by the nominations committee. When approaching directors, the Board considers its needs regarding expertise, experience, diversity, and number of members. Effective control is exercised through the Chief Executive Officer, who is accountable through regular reports to the Board. The non- Annual Reports

30 executive directors are considered to have the skills and experience to bring unrestrained judgement to bear on issues of strategy, resources, transformation, diversity and employment equity, standards of conduct, evaluation of results as well as on economic, social and environmental policies. Roles and responsibilities The Board sets the strategic objectives of the Company, determines investment policy and performance criteria and delegates to management the detailed planning and implementation of policies in accordance with the appropriate risk parameters. The Board monitors compliance with policies and achievement against objectives by holding management accountable for its activities through monthly performance reporting and budget updates. Members are encouraged to debate and challenge issues in an atmosphere of mutual respect and co-operation. The role of the Board is regulated in a formal Board charter that defines its authority and power. Senior executives have access to Board meetings as and when necessary to apprise the directors of important events and to devise strategy. This encourages interaction, good communication and close co-operation between directors and management. Where directors are unable to attend Board meetings for any reason, every effort is made to obtain and communicate to the meeting any comments they may have regarding the agenda and general items. In total nine Board meetings were held during the year, including two special general meetings. Directors are entitled, at the Company s expense, to seek independent professional advice regarding Company issues for the furtherance of their duties. All directors have access to the CEO who is responsible for ensuring Company compliance with applicable legislation and procedures. Conflicts of interest The directors are required to avoid a situation where they may have an interest which conflicts with the Company s interest. A conflict of interest policy ensures that directors disclose conflicts of interest at every meeting in terms of section 75 of the Companies Act. In addition, directors present an updated list of their directorships and interests to the Company Secretary on an annual basis, or when a change has occurred in their directorships. Board self assessment The Company is an association not for gain and the non-independent directors were appointed in terms of the Langa Commission agreement. Consequently, no Board and non-executive director assessments were required. The Board has, however, conducted self-assessment and the results thereof was compiled by Statucor and communicated to the Board. Board sub-committees Committees of the Board are appointed to perform specific tasks affecting the affairs of the Company. Committees of the Board have as the prime object of assisting the Board and management in fulfilling their responsibilities. Committees are, however, not to interfere with the responsibilities of the CEO and management with regard to the management of the Company and the implementation of operational issues. Therefore, any recommendations or proposals, particularly of a financial nature affecting operational issues, must receive the prior approval of the CEO before being submitted to the Board. No committee or individual member is mandated to make decisions 30. binding on the Company without prior approval of the Board. In addition, committees are required to only deal with business falling within their delegated authority. It is the general duty of committees to deal with all business timeously and to submit recommendations to the Company for its consideration and approval. In carrying out its tasks, a committee may obtain such outside or other independent professional advice as it considers necessary to carry out its duties, subject to such directives as may be determined by the Board. The quorum for meetings of committees shall, in all cases, be one more than half the number of persons officially appointed to the specific committee. In determining the persons present and comprising the quorum, the ex officio members and co-opted members shall not be included. Notwithstanding the composition of the committees, the Board may, at its discretion if circumstances so require, vary the composition of any committee. The President and the CEO shall ex officio be members of all committees The role of Board sub-committees is formalised by terms of reference that define their authority and scope. Each sub-committee is chaired by a non-executive director. The Board sub-committees consist of the Executive, Remuneration and H.R, Audit and Risk, Finance and Procurement, Stadium, Marketing Commercial and Communications, Cricket Pipeline, Cricket Clubs/ Council, Disciplinary, Transformation and Social & Ethics and Legal & Governance committees. Remuneration committee Members Fatima Habib (Chair) Anne Vilas (Dep Chair) Mohammed Majam Koketso Muller Invitees Barry Whitfield Greg Fredericks Roles and responsibilities This committee determines the framework, policy and costs of executive and senior management remuneration. The committee strives to achieve adequate, competitive and fair compensation in recognising and rewarding executive directors and senior employees to ensure their motivation and retention. The committee refers specific recommendations for non-executive director remuneration to the Board for deliberation. No person is involved in decisions as to his or her own remuneration. In fulfilling its duties, the Remuneration Committee pays due attention to succession plans and the retention of key executives. This committee: Ensures that the Group has a remuneration policy which is aligned with the Group strategy and performance goals Assesses and reviews remuneration policies, employee short-term and long-term incentive schemes and performance bonuses Approves the remuneration of executive directors and senior management Considers management proposals in respect of fees for nonexecutive directors, which are tabled for shareholder approval at the annual general meeting Determines executive and staff participation in the long-term incentive schemes Annual Reports 2018

31 Audit and risk committee Members Brian van Rooyen (Chair) Ntsongo Sibiya (Dep Chair) Simphiwe Dzengwa Anne Vilas Invitees Mike Sacher Yusuf Seth Barry Whitfield Greg Fredericks Roles and responsibilities The committee has an independent role with accountability to both the Board and stakeholders. The overall function of the committee is to assist the directors in discharging their responsibilities relating to the safeguarding of assets, the operation of adequate effective systems and control processes and the preparation of fairly presented financial statements in compliance with all applicable legal and regulatory requirements and accounting standards. The committee s role is to ensure the integrity of the financial reporting and audit processes and the maintenance of sound risk management and internal control systems. It has a wide range of powers to consult, both internally and externally, and must be provided with sufficient resources to examine financial reporting and other strategic issues according to its written terms of reference, as confirmed by the Board. This committee: Monitors the integrity of the annual and interim financial statements and external financial reports Oversees relations with the external auditors and reviews the effectiveness of the business assurance/internal audit function Evaluates the findings of business assurance/internal audit and external audit, the actions taken, the adequacy of the system of internal financial and operational control and reviews accounting policies and financial information issued to stakeholders Recommends to the Board the selection of the Company s external auditors, approves the remuneration and terms of engagement of the external auditors, considers and pre-approves non-audit services and monitors the external auditor s independence and effectiveness Has the authority to seek information it requires from any employee The Audit and Risk Committee reports its activities and makes recommendation to the Board. The Audit and Risk Committee is satisfied that the external auditors are independent of the Company and that the Financial Manager has appropriate experience and expertise. Finance & procurement committee Members Mike Sacher (Chair) Farouk Seedat (Dep Chair) Anne Vilas Ntsongo Sibiya Invitees Ebrahim Lambat Siki Wadvalla Greg Fredericks Barry Whitfield Roles and responsibilities The role of the Central Gauteng Lions Finance and Procurement Committee is to: Finance Function Assist the Board in assessing the going concern status of the company at the financial year-end To recommend approval of budgets to the Board Ensure timely preparation of Annual Financial Statements Develop internal controls and approve related policies and procedures. To review monthly financial reports. To approve Treasury management plans Procurement Function To ensure that the Central Gauteng Lions procurement strategies are implemented and sustained To recommend and approve budgets within authorities This committee: Is largely responsible for financial and corporate responsibilities in conjunction with management Prepares financial budgets and forecasts for the Group and complies and presents the annual financial statement Interacts extensively with the Audit and Risk Committee and the Group auditors business reviews and risk controls Ensures that the Group s financial affairs are managed in accordance with good financial practice and good corporate governance according to the highest ethical principles Stadium committee Members Koketso Muller (Chair) Brian van Rooyen (Dep Chair) Simphiwe Dzengwa Invitees Siki Wadvalla Patrick Moroney Itumeleng Mokgotsi Jabulani Mkhwebane Greg Fredericks Cyril Martin Roles and responsibilities To provide the strategic direction for the Stadium Unit in the company To approve the business plan and budget of the unit To exercise oversight over governance issues in the unit To provide guidance to the unit To receive and review reports and give feedback to the unit This committee: Shall act as a committee of control, liaison and co-ordination of stadium operations and shall implement all policies of the Board or any of its directives or instructions from time to time Shall receive, consider and assess all reports and recommendations of a financial nature affecting the management of commercial and stadium matters and to implement an appropriate programme of action through the management. All aspects of a financial nature shall be reported to the Finance and Procurement Committee and shall only be authorized if in accordance with an approved budget. Any unapproved item is to be referred to the Board via Finco Annual Reports

32 Shall, in liaison with management, submit annually to Finco for ratification and submission to the Board, a Business Plan and Budget incorporating an estimate of income and expenditure and cash flow relating to activities for the next financial year. This budget, which shall include a detailed Capex budget accompanied by a statement of actual income and expenditure for the current year, is to be in the hands of Finco by 15 March each year and shall include, inter alia, proposed expenditure relating to; services, maintenance, development and cost of events Shall ensure that all relevant information affecting financial budgetary issues is brought to the attention of management timeously, prior to the preparation and presentation of the annual financial budget to Finco Shall ensure that there is compliance with the financial authorization policies of the Company. This has particular relevance in cases when tenders are called for any capital and/or maintenance projects Shall consider and action, if so required, any matters referred to by the Board Shall assist in all aspects of the stadium maintenance programmes Shall be responsible (the chairman) for the submission of monthly and any other specific reports to the CEO to enable him to report to the Board Shall assist the Chief Executive Officer with policy and strategic issues which include all aspects of stadium capital, maintenance programmes, policies and commercial issues, including recommendations to the Finance and Procurement Committee on budgetary issues Marketing Commercial and Communications committee Members David Terbrugge (Chair) Mohammed Majam New ID Invitees Verusha Maharaj Susan Parker Stacy Osborn Tlhogi (Paul) More Greg Fredericks Cyril Martin Andra Nel Roles and responsibilities To provide the strategic direction for the Commercial and Marketing Unit in the company To approve the business plan and budget of the unit To exercise oversight over governance issues in the unit To provide guidance to the unit To receive and review reports and give feedback to the unit This committee: Shall act as a committee of control, liaison and co-ordination of commercial and marketing operations and shall implement all policies of the Board or any of its directives or instructions from time to time Shall receive, consider and assess all reports and recommendations of a financial nature affecting the management of commercial and stadium matters and to implement an appropriate programme of action through the management. All aspects of a financial nature shall be reported to the Finance and Procurement Committee and shall only be authorized if in accordance with an approved budget. Any unapproved item is to be referred to the Board via Finco 32. Shall, in liaison with management, submit annually to Finco for ratification and submission to the Board, a Business Plan and Budget incorporating an estimate of income and expenditure and cash flow relating to activities for the next financial year. This budget, which shall include a detailed Capex budget accompanied by a statement of actual income and expenditure for the current year, is to be in the hands of Finco by 15 March each year and shall include, inter alia, proposed expenditure relating to; services, maintenance, development and cost of events Shall ensure that all relevant information affecting financial budgetary issues is brought to the attention of management timeously, prior to the preparation and presentation of the annual financial budget to Finco Shall ensure that there is compliance with the financial authorization policies of the Company. This has particular relevance in cases when tenders are called for any capital and/or maintenance projects Shall consider and action, if so required, any matters referred to by the Board Shall assist in all aspects of the stadium maintenance programmes Shall be responsible (the chairman) for the submission of monthly and any other specific reports to the CEO to enable him to report to the Board Shall assist the Chief Executive Officer with policy and strategic issues which include all aspects of stadium capital, maintenance programmes, policies and commercial issues, including recommendations to the Finance and Procurement Committee on budgetary issues Cricket pipeline committee Members Ntsongo Sibiya (Chair) Yasin Manack (Dep Chair) Lucky Lesele David Terbrugge Invitees Koketso Muller Dean Laing Lesiba Mailula Earl Glennistor Greg Fredericks Colin Gxowa Roles and responsibilities Deals with all development (amateur) cricket matters as audited in the Company development programme, as well as women s and differently abled cricket Seeks to broaden the culture of the game and foster a supportive culture Shapes a future cricket culture that covers all levels of the game Minimises the loss of cricketers Assists capacity building amongst previously disadvantaged South Africans Assists management and monitors the alignment of the Company development plans with the CSA Presidential Plan and the Langa Report This committee is responsible: To act as a committee for liaison and co-ordination of all amateur cricket as it relates to KFC, Schools, Hubs, RPCs, etc. and shall recommend proposals to the Board for implementation. To receive, consider and assess all reports and recommendations on various aspects of amateur cricket to implement an appropriate Annual Reports 2018

33 programme of action in respect thereof To ensure that all relevant information affecting amateur cricket are brought to the attention of Board To consider and action, if so required, any matters referred to by the Board The Chairman of the Committee shall, liaise with the Board where required For talent identification Central Gauteng Lions Pipeline Policy Central Gauteng Lions Transformation Policy Talent at School Women s & Girls Cricket Hubs & RPC Academy System Universities Coaching Transition from School & Club Cricket & TID in clubs The Strikers Facilities Umpires & Scorers Cricket clubs committee Members Siki Wadvalla (Chair) Mohammed Majam (Dep Chair) Mark Patterson Koketso Muller Invitees Karel Mouton Doug Neilson Lewis Manthata Dali Khumalo Zaid Kimmie Lesiba Mailula Lucky Lesele Frank Auger Afzal Salojee Mahmood Takolia Keith McIntyre Odette Allen Greg Fredericks Sherina Desai Colin Gxowa Roles and responsibilities This committee: Assists in the full-time operation of all aspects of amateur cricket Includes representatives from clubs, schools, development, umpires, coaches, deaf, blind, impaired and women s cricket Assists in the full-time operation of club cricket and consists of representatives from clubs and the Umpires Association Acts as a committee of liaison and co-ordination of Strikers cricket and shall implement all policies of the Board or any of its directives or instructions from time to time Will receive, consider and assess all reports and recommendations on various aspects of Strikers cricket and, through management, implement an appropriate programme of action in respect thereof Will receive, consider and assess all requests and recommendations of a cricketing nature and which may or may not have financial implications or affecting the administration of Strikers cricket, playing fields, facilities and amenities, and to implement an appropriate programme of action through the management. All aspects of a financial nature shall be reported to the Board and shall only be authorised if in accordance with an approved budget. Any unapproved item is to be referred to the Board via the Finance and Procurement Committee (Finco) Liaises with management to submit annually to Finco for ratification and submission to the Board a business plan and budget incorporating an estimate of income and expenditure and cash flow relating to activities for the next financial year. The Chairman of the Cricket Playing Committee shall, in liaison with management, be responsible for the submission of monthly and any other specific reports required by the Board Disciplinary committee Members Mike Sacher (Chair) Adv Lesego Mokhutswane (Dep Chair) Lucky Lesele Roger Burne Faizel Sallie Anton du Randt Mahmood Takolia Roles and responsibilities This committee: Deals with breaches of by-laws and the Code of Behaviour in club cricket in Gauteng Transformation and social & ethics committee Members Fatima Habib (Chair) Matodzi Ratshimbilani (Dep Chair) Mark Patterson Brian Van Rooyen Invitees Mohammed Majam Yasin Manack Lethabo Mashigo Lewis Manthata Dean Laing Greg Fredericks Colin Gxowa Transformation roles and responsibilities To promote, encourage, advance and generally assist the Board and the CEO in transformation and development of all aspects of the Company s operations and administration, including, but not limited to stakeholders, employees, cricket at provincial, club, youth and schools level The committee will assist in: The process of unlocking the human asset of the Company s organization by allowing all legitimate stakeholders to be heard, to encourage local ownership and accountability to the people who are represented Annual Reports

34 Ensuring that the Company s constitution is a unifying force, reflecting the sentiments of a modern organization, promoting sound governance, facilitating strategic guidance, encapsulating the executive powers and accountabilities and protecting our codes of conduct Bridging the existing gaps between schools and youth cricket, club cricket, provincial cricket and international cricket in order to minimize loss of human potential and optimize the return on cricket s human and financial investments In the acknowledgement, recording and appreciation of Black cricket during the past century in order to establish a rich and comprehensive history of South African cricket, recognizing our diversity as a source of strength In the development of a programme aimed at broadening the culture of the game and democratizing opportunities in all our communities. This programme must ultimately assist in establishing cricket as the people s game, which integrates all communities into cricket activities, thereby contributing to the shaping of a future cricket culture. It must cover all levels, aspects and parameters of cricket In supporting a financially and operationally viable and stable affiliate base. This will be achieved by establishing a fair and equitable policy for the distribution of funds that is accepted and supported by affiliates and rewards affiliates for their contribution to cricket The promotion of the cricketing reasons and business forces that necessitate the Company to drive cricket to the majority of the people of this country at all levels of the game To promote programmes designed to develop the potential of players from historically disadvantaged communities and to monitor on an on-going basis the selection of all Gauteng representative teams in terms of the Company s selection policy To co-ordinate programmes in liaison with other committees of the Board To report to the Board on its proposals and activities Social and Ethics roles and responsibilities The Social and Ethics Committee must monitor the Company s activities with regard to matters relating to: Social and economic development, including the Company s standing in terms of the goals and purposes of; The 10 principles set out in the United Nations Global Company Principles The OECD recommendations regarding corruption The Employment Equity Act, No. 55 of 1998 The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 Good corporate citizenship, including the Company s: Promotion of equality, prevention of unfair discrimination and measures to address corruption Contribution to development of the communities in which its activities are predominantly conduct or within which its products or services are predominantly marketed Record of sponsorship, donations and charitable giving The environment, health and public safety, including the impact of the Company s activities and of its products and services Consumer relationships, including the Company s policies and records relating to advertising, public relations and compliance with consumer protection laws Labour and employment matters If one considers the requirements of King III with respect to ethical leadership and ethical behaviour, some additional functions may include: Reviewing the adequacy and effectiveness of the Company s engagement and interaction with its stakeholders Considering substantive national and international regulatory developments, overseeing their operationalization as well as practice in the fields of social and ethics management Reviewing and approve the policy and strategy pertaining to the Company s programme of corporate social investment Determining clearly articulated ethical standards (Code of Ethics) and ensuring that the Company takes measures to achieve adherence to these in all aspects of the business, thus achieving a sustainable ethical corporate culture within the Company Monitoring that management develop and implement programmes, guidelines and practices congruent with the Company s social and ethics policies Reviewing the material risks and liabilities relating to the provisions of the Code of Ethics and ensure that such risks are managed as part of the Company s risk management programme Reviewing the Company s performance in implementing the provisions of the Code of Ethics Obtaining external assurance of the Company s ethics performance on an annual basis and include in the integrated report an assurance statement related to the ethics performance of the Company Ensuring that management has allocated adequate resources to comply with social and ethics policies, codes of best practice and regulatory requirements. The Social and Ethics Committee must report to shareholders at the Annual General Meeting. At least 1 (one) member of the Committee must attend the Annual General Meeting of the Company to report back to shareholders on the activities of the Company. Although there is no legislative requirement for the committee to issue a written report, it is recommended that a written report be included in the Company s integrated report, director s report or its governance report, whichever is the most appropriate in the circumstances Legal and governance committee Members Matodzi Ratshimbilani (Chair) Fatima Habib Shawn Christiansen Invitees Brian Van Rooyen Adv Lesego Mokhutswane Willie Wannenburg Yasser Ditta Greg Fredericks Roles and responsibilities To assist the Board and the CEO in discharging their duties with regard to legislative enactments, the common law and its MOI To review, on an on-going basis, any constitutional issues in the light of transformational developments To review, on an on-going basis, all contractual relationships of the Company To review, on a bi-annual basis, legal systems and procedures To make recommendations to the Board on any matters relating to and arising from reviews or investigations This committee exercises oversight over: The Memorandum of Incorporation All policy documents of the Central Gauteng Lions Gives guidance on company legal matters Gives guidance to the Board on any amendments to the Central Gauteng Lions governance documents 34. Annual Reports 2018

35 Yolanie Fourie of Gauteng during the Final match between Western Province and Gauteng on day 5 of the CSA National Womens Week at St Andrews School on 8 April 2018 in Bloemfontein, South Africa. (Photo by Frikkie Kapp/Gallo Images) Annual Reports

36 Strategic objective #2: Developing quality winning teams The Central Gauteng Lions aims to develop quality-winning cricket by attracting, developing and retaining the best talent while ensuring that we meet our transformation goals. 36. Annual Reports 2018

37 From KFC Mini Cricket through to the Central Gauteng Lions Strikers, we have a clear pipeline for developing quality winning teams in Gauteng. We also aim to develop women and girls cricket and run the Gauteng Academy, aimed at honing the skills of our top players. Winning teams are a product of good coaching and so coach education is an important part of the work we do. All of the amateur cricket areas have targets in place, which are based on an annual score card system. The focus areas for improvement are broad and include the following; diversity targets, training and coaching targets and administration targets. KFC Mini Cricket KFC Mini Cricket is instrumental in cricket development and each year thousands of boys and girls from across the province participate in this programme. Over the past season this programme has been extended to a further 44 schools, bringing the total number of participating schools to 263. We also managed to host at least one festival in each area that we preside over namely Sedibeng, Soweto, Dobsonville, South, far West Rand, Central and Alexandra. Youth and Schools cricket On the whole, our youth teams performed well during the season. While the Gauteng U13 provincial team did not have a good national week, they managed to win three of their five games. The U15 won all their matches to get to the final, which was rained out unfortunately. Tahir Isaacs was the outstanding player for this age group. The U17 team won all their games including the final with Bryce Parsons named as the outstanding player for that age group. The Gauteng U19 team became the first team to win the Coca Cola Khaya Majola tournament as hosts. Players like Wandile Makwetu, Kgaudise Molefe and Curtis Campher were the most outstanding players, with Makwetu and Molefe both selected for the U19 World Cup. The Gauteng U19 coach Mr Wandile Gwavu was selected as the SA U19 assistant coach. Women s cricket Central Gauteng Lions Women s 2017/18 season started on a high with the team winning their first two games of the season against Border away from home which saw them finishing the first half of the season top of the log in both formats. The team was not as successful in the second half of the season and ultimately finished third and fourth respectively in the T20 and 50 Overs formats. It was a decent season overall with four players selected for national representation, namely, Raisibe Ntozakhe, Trisha Chetty, Shabnim Ismail and Ayabonga Khaka. Girls cricket Our Girls cricket teams performed well with both the U13 and U16 regional teams winning all their games. Proof of the importance of our Hub programme was the success story of Raisibe Ntozakhe, who comes from the Alexandra Hub and made it all the way to represent South Africa at the Women s World Cup in England. Strikers The Strikers team, the senior men s provincial team, had seen a muchimproved season, although the silverware to show this has not been forthcoming. They qualified for the semi-finals of the Africa T20 Cup, a televised Southern Africa competition, and made the finals of the CSA Provincial One-Day Challenge. A number of players also went on to play for the bizhub Highveld Lions including Nandré Burger, Ryan Rickelton and Sean Jamison. Provincial Academy The Provincial Academy programme is part of our efforts to source players in clubs and schools and progress their careers after school. Over the last year, 23 players participated in the academy and it is showing some good results with some good players coming through like Mohammed Mayet, Juan Landsberg and Delano Potgieter. Coaching Our coaching education is paramount to producing quality coaches. We offer a range of courses including refresher courses, CAP camp, coaching forums and Level 1 and Level 2 courses. Further, educational newsletters were planned and done accordingly for coaches. Our coaching manager also sends out regular information to the database of coaches in our club and school programmes. Staff development As a part of the Central Gauteng Lions drive to become an employer of choice, we are committed to developing our staff and, as such, not only develop quality cricket players but also quality cricket administrators. One of our staff members, Buhle Vaphi who was the Mini Cricket Coordinator has moved to CSA to be the Mass Participating Coordinator. Kurt Human who was our Youth and Schools Coordinator has joined the Mpumalanga Cricket Union as their 2018/19 Senior Provincial Head Coach. Gauteng vs Western Province during day 2 of the 2018 Standard Bank RPC National U17 Week at Tuks Oval on 4 April 2018 in Pretoria, South Africa. (Photo by Johan Rynners/Gallo Images) Annual Reports

38 Q&A with Strikers coach, Sandile Masengemi The Strikers had an excellent 2017/18 season. They progressed to the semi finals of the Africa T20 Cup and did very well in the CSA Provincial One-Day Challenge, finishing top of the log and as runners up overall. Strikers coach Sandile Masengemi reflects on the team s successful performance. Tell us a little bit about your coaching career to date. I played for the Highveld Lions from , but my coaching career only started in in 2005 when I was playing for the Stratford Bards in Warwickshire, England. In my spare time I started coaching the youth side. After returning to South Africa in 2010, I was involved in coaching development cricket in Gauteng and I coached kids from Kagiso, Dobsonville and Soweto whilst it was a challenging time, it helped me lay the foundation and passion for coaching. I also coached players from the U13, U15 and U19 teams before becoming an assistant coach for Gauteng U17 in After this, I was really happy to work as an assistant coach alongside former coach, Enoch Nkwe for the Gauteng Lions U19 team. In 2013, I took over as coach to the U19 team; for three consecutive years we won the Lions Cubs Week and the Coca-Cola Khaya Majola week. From here I moved on to coach the Strikers. How long have you coached the Strikers for? This is my second season at the Strikers. How do you select Strikers team? We look at the schools structure, those playing in the U19 teams and in particular those who do well in the various competitions. From here we identify players who show potential, either selecting them to join the Gauteng Academy or some may go straight on to play for the Gauteng Strikers, like Kagiso Rabada who skipped the Academy and came straight to the Strikers. We also look at club cricket for more experienced players so that we have the right combination of talent, however we keep our age range from years old. Please describe the culture of the Strikers. The Strikers is the senior provincial team; this is the launch pad for our professional players. Our aim is to create a culture that allows each player to grow as individuals, where they learn to respect each other and work as a team. They are here to work hard and play good cricket, and they need to take ownership for their ability and play to win. We have one-on-one time with each player, where we look at their role in the team and who they need to compete with to be selected for games. Usually our players stay with us for three years, however some grow quicker and move on sooner. Why do you think the Strikers had such a good season? We have many talented players on our team, which helped us this season. The team worked very hard and played well together. For you, what was their standout performance? Whilst we were the number one team on the log, we ended up runners up overall in the CSA Provincial One-Day Challenge as we lost in the final game of the season. However there is always room to improve, we still struggle in the T20 format and we also need to improve our one-day cup performance. Are there any players to watch out for in the coming season? I am proud of all my players, there are many great cricketers in the making. The players who come to mind include Ryan Rickelton, who is in his third season with the Strikers. Ryan just signed a franchise contract with the Lions this year. He also played well in all formats and is definitely one of the young stars to watch. Nandre Burger is another player showing potential; he is a left arm spin bowler, who we are really excited about. Then there is Kgaudise Molefe who has come through from Jeppe Boys High School. He performed very well for the U19 team and has been signed for upcoming season. 38. Gauteng Strikers celebrate during the Africa T20 Cup semi final match between Hollywoodbets KwaZulu-Natal and Gauteng Strikers at Diamond Oval on September 24, 2017 in Kimberley, South Africa. (Photo by Carl Fourie/Gallo Images) Annual Reports 2018

39 KFC kids during the RAM SLAM T20 Challenge match between bizhub Highveld Lions and WSB Cape Cobras at Bidvest Wanderers Stadium on 17 November 2017 in Johannesburg, South Africa. (Photo by Lee Warren/Gallo Images) Reeza Hendricks and Wiaan Mulder celebrate a spectacular ending during the RAM SLAM T20 Challenge match between bizhub Highveld Lions and Hollywoodbets Dolphins at Senwes Park on 19 November 2017 in Potchefstroom, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Annual Reports

40 Strategic objective #3: Ensuring that club and school cricket thrives The Central Gauteng Lions aims to ensure that club and schools cricket thrives, especially in disadvantaged areas. 40. Annual Reports 2018

41 Schools and clubs are both fundamental to developing our cricket pipeline. Although we do not have the resources to improve club and school cricket in disadvantaged areas to the extent required, we remain committed to improving the facilities and the opportunities available to previously disadvantaged cricketers. Our Hubs and Regional Performance Centre continue to play a crucial part in meeting our objectives in this regard. Club cricket We had a successful club cricket season and managed to achieve a 100% completion rate of scheduled games that were not rained out. Worth noting is the performance of community club Jeppe Quondam Cricket Club, which qualified for both the club championships and the bizhub Highveld Lions play-off. Unfortunately, they did not manage to successfully qualify for the national tournaments. Our commitment to developing black clubs We endeavour to develop self-sustaining well-maintained cricket clubs in previously disadvantaged areas. The cricket grounds that we assist in maintaining include the following cricket clubs: Alexandra, Soweto Pioneers, Dobsonville, Kagiso, Lenasia, Lenasia South, Crescents, Florida, Marks Park, Roshnee, Delfos and Johannesburg. Our aim is to ensure that the facilities are up to a standard so that cricket can be played at these clubs. Whilst the responsibility to maintain these facilities lies with the council, we endeavour to work with municipalities to improve the facilities further, however this continues to be a challenge. As the Central Gauteng Lions we support these clubs through funding towards their coaching, covers, rollers, site screens, machinery, nets and other equipment. We also provide assistance to ensure that the pitch is treated and that boundary ropes are in order. We also subsidise ground staff at these facilities and assist with the cutting of outfields on a weekly basis. Our relationship with the more traditional boys schools such as King Edward VII, St. Stithians, St. John s College is working very well for the betterment of developing budding cricketers for the future. The success of this was made evident by the outstanding performances at the U15, U17 and U19 National Weeks. Further, an Indaba was held with traditional boys schools in the province to assist us with our mandate of growing black cricketers. Schools were given the opportunity to identify areas for assistance from the Central Gauteng Lions, and vice versa, in order for us to achieve this goal. We employed coaches (together with Cricket South Africa) at our focus schools; namely - Queens, General Smuts and Highlands North - to look after our bursary players that we support at these schools. With R419,975 funding from Cricket South Africa, the construction of nets or artificial middle strips were effected at a number of schools that had applied for funding including Skeen Primary School, Dobsonville RPC, Thabang Primary School, Khutlo Tharo High, Lodirile High School and Reutlwile Primary School. Hubs and Regional Performance Centre Our Hubs and RPC programme made some remarkable progress during the year. All of them met the criteria of playing more than 20 games per age group. Our RPC achieved a winning ratio of more than forty per cent and played more than twenty per cent of their games against traditional boys schools. Some revamps were done in some of our Hub and RPC area schools and grounds to further assist them with providing better facilities for their practices and matches. We have also seen an impressive rise in the numbers of boys and girls that get taken up or offered bursaries by traditional cricketing schools and by our focus school. Increasing participation in the Premier A and B leagues We are also working to have more black clubs in the Premier A and B leagues. Currently, the Premier A league has two black clubs and four clubs of colour out of total of 12 teams that make up that league. The Premier B league is made up of 12 teams, of which six are of colour. Seventy per cent of the clubs of the Premier A league conform to the CSA transformational representational targets, the remainder of the clubs have a plan in place to meet set targets. Although we are making improvement in terms of the number of black clubs in the premier league, these clubs are not performing as well as we would like them to and the log standings are proof of that. However, we hope that our support in terms of coach and infrastructure will go some way in helping improve performance. Further, we are also supporting coaching at clubs in the premier league. We are trying to make sure that the first team in any club in the premier league has a Level 3 coach in place. Schools cricket At schools level we are committed to fostering a great cricket culture with a strong cohort of black players. In this regard we make an effort to work with traditional cricket schools to ensure that cricket thrives in the province. In the year, we identified three dormant schools (Highlands North Boys High, Krugersdorp High and General Smuts in the Vaal area), where cricket was played but stopped for a number of reasons. Funding was Lethabo Pila of Alex during the Momentum Friendship Match between made available to these schools for bursaries for select boys from our Alexandra Hub and St Stithians College at Lyme Park on October 17, Hubs and RPC programme as part of our Blue Label bursary initiative in Johannesburg, South Africa. (Photo by Sydney Seshibedi/Gallo Images) Annual Reports

42 Q&A with Mike Bechet, head of cricket, Jeppe and head of South Africa Schools team Jeppe High School is a model for transformation and development in schools cricket in Gauteng. The school offers a number of cricketing bursaries and currently has seven players of colour in their school s first team. Tell us a bit about the history of cricket at Jeppe. Jeppe is one of the oldest cricket playing schools in Gauteng with records dating back to 1906 and has produced a number of quality players, a number of which have played for their country. In 1939 the first turf wicket was laid on clay at the school. Today, the school has three turf wicket cricket ovals, ten turf cricket nets, four artificial outdoor nets, as well as a state of the art indoor cricket centre, opened in How many bursaries do you offer for cricket at Jeppe and how do you fund these bursaries? Bursaries are available and the quantum thereof is dependent on the financial situation of the family. It also considers the pupil s talent, his academic and overall performance, and the budget of the school. Bursaries are funded either internally or through third party funders such as the Momentum MAD Scholarship, with limited financial assistance received from the Central Gauteng Lions in certain situations. Preference is given to boys from previously disadvantaged communities. Why has transformation been so important to Jeppe? At Jeppe, we view transformation as an integral component of our school; it is central to our long-term strategic vision. This applies to pupils, staff and the school leadership. Whilst transformation is a social and moral imperative, it is also of great strategic importance. We want Jeppe to be seen as the top government school for pupils of all races, and a school where talented boys from disadvantaged communities in particular are given the opportunity to excel. We already have an excellent track record in this regard with the majority of our provincial representatives in sports like cricket, rugby and hockey being from previously disadvantaged communities. We have the coaching infrastructure, pastoral systems and management buyin necessary to ensure that previously disadvantaged pupils will be given all the necessary support required to achieve their ambitions both on and off the field. There are seven players of colour in your first team. How did you achieve this? In 2017 we had seven players of colour in our 1st XI and in 2018 we had five. We have gone out and attracted boys to Jeppe on the basis of opportunities that will be afforded to them. There are many talented players of colour in Gauteng, and it is a question of networking with the relevant people and creating trustworthy relationships in order to provide opportunities for talented young cricketers. What standout achievements were there from Jeppe players in 2017? We had a few players selected for provincial and national sides. These included Linda Ndlovu and Levert Manje, who were selected to play for the Gauteng U17 side, and Sarfaraaz Ahmad and Kgaudise Molefe who played in the Gauteng Coke Week. Kgaudise Molefe was selected for SA Schools and was chosen to play for SA U19. Levert Manje was selected for Gauteng Lion Cubs Week. Tell us a little bit more about Kgaudise Molefe, the Jeppe player who was selected for the U19 World Cup squad. Gaudy, who hails from Orange Farm and is a border at Jeppe, is a talented and hard working young cricketer. This year, Gaudy performed well at the 2018 U19 Cricket World Cup in New Zealand, and as he is still under 19 he qualifies to play in other upcoming series for the SA U19 Team if selected going forward. He is a great example of the type of young man that Jeppe is proud to work with, and he clearly has his sights set on representing his country at the top level. 42. Annual Reports 2018

43 Liam Surendra of Gauteng during the Momentum Boys U/13 Week at the match between Gauteng and KZN Inland at Bridgton Sports Ground A on December 11, 2017 in Oudtshoorn, South Africa. (Photo by Richard Huggard/Gallo Images) Annual Reports

44 Strategic objective #4: Maintaining the Bidvest Wanderers reputation as an iconic stadium The Central Gauteng Lions is focused on ensuring an unparalleled stadium experience and on maintaining a modern stadium. 44. Annual Reports 2018

45 The 2017/18 season at the Bidvest Wanderers Stadium was one of highs and lows. On the positive side, we successfully hosted four international matches across the three formats. The Momentum ODI PinkDay lived up to expectations, with spectators now flying into Johannesburg specifically to attend this event, which once again saw the Proteas unbeaten. The sandpaper test series against the team from Down Under, was significant in that 17,000 spectators attended the first day of the Test on Friday, 30 March Other highlights included the fact that the Bidvest Wanderers Stadium obtained a Venue Safety Certificate on 18 September 2017 from the City of Johannesburg, after a rigorous process. This certificate is a requirement in terms of the Safety at Sports and Recreational Events Act (SASREA), On the negative side we saw the postponement of the T20 Global League, which affected our ability to create revenue from match day and non-match day activities. replaced over time as more budget becomes available. Over the next few months, further upgrades will be made to the stadium, these include a R1 million investment to upgrade the Upper Unity seating area, the work will be completed by September A total of R280,000 has been budgeted for the outdoor nets renovation programme; this will be completed by end of July before the pre-season starts. The players change room bathroom will be upgraded as part of our partnership arrangement with Tile Africa. Further, the Wanderers Sports Medical Centre showers will receive a R425,000 upgrade which is set to be completed by July. Improving the stadium experience At the Bidvest Wanderers Stadium we strive to create a great stadium experience for our fans. One improvement we made this year was the addition of a prayer room. We have also put in place a number of measures to iron-out transport challenges these include the park and ride facility, and the use of tuk-tuks to get people from the parking areas to the stadium as well as Uber drop of zones. Another low point was the Bidvest Wanderers Stadium receiving three demerits from the International Cricket Council following a poor rating of the pitch by the match referee for the third test between South Africa and India. These three demerit points will remain active for a rolling fiveyear period. Stadium upgrades Over the past financial year over R13.3 million was spent on stadium upgrades. A further amount of R3.3 million was spent (over two financial years) on three new lifts. The following upgrades were made within the stadium environment: Media centre (R2.6 million): The Charles Fortune Media Centre upgrade has been well received by the media, who were consulted in terms of what would improve the facility. Bathroom facilities: A three-year partnership was entered into with Tile Africa for the supply of tiles and other related products. In year one, twelve bathrooms were completed, of which ten were completed on the ground level to enhance the general spectator experience. The revamp of the Bidvest Wanderers Longroom has been complemented by the impressive showroom quality tile range in the washrooms. LED video board (R7.5 million): The LED video board (26m x 8m) is used as both a video replay board and as a scoreboard on event days enhancing the stadium experience. The capability of the video board is that it has the potential to be used as a large television screen. The added value to the spectators is that during a rain affected match, spectators could watch another sports match live on the big screen. Indoor nets (R420,000): The surface, netting and lighting has been upgraded within the indoor centre. The lighting within the indoor nets is 750 lux, which complies with the international norms for such a facility. The facility is equipped with Pitch Vision software and two CCTV cameras, which will assist with coaching analysis. CCTV upgrades (R600,000): The final phase of the LED-CCTV upgrades has been completed which sees the stadium covered with eighty CCTV cameras, allowing better than ever views, monitoring and management of the facility. In the interest of operational efficiency, the stadium has been equipped three viewing stations of the CCTV camera footage. Suite-door access control (R1,8 million): A state-of the-art door access suite-door control has been installed, which provides greater safety of the protection of the assets of the suite holders. The added value of the system is that door access can be monitored in real time. Lifts (R3.3 million): Currently, three of the nine lifts in the stadium have been installed to replace the current lifts, which are more than 25 years old. The areas covered currently are the Unity Stand, the Memorial Stand and the Centenary Pavilion. It is envisaged that the other lifts will be We aim to make the Bidvest Wanderer Stadium a family-friendly experience with a dedicated family area on the grass. This past season there was a family special for international matches where families could buy four tickets for the price of two for downstairs Unity and Centenary seats. We also offer personalised hospitality packages and special offers for the Sun-Zone. Greening the stadium While the City of Johannesburg s electricity billing is very inconsistent, however water charges have significantly decreased due to the use of the water reservoir, whereby run-off rainwater is pumped back into the stadium for field irrigation purposes. Borehole water is pumped into the water tanks and the filtration ensures that the water is drinkable. Regular tests are conducted to ensure the safety of the water. The negotiations around the time-of-use tariff have been completed, following backlog challenges at the City of Johannesburg. The internationals for the new season will be on Sundays, which should reflect the benefit of off-peak rates being applied. The contract for cleaning services is in the process of being awarded and waste recycling programmes will be included in the service level agreement. Other revenue streams The T20 Global League required that a period of six weeks be blocked out for the tournament. As a result of the postponement of the event, previous enquiries for events were lost to other venues. The number of private events did not increase due to the proposed T20 Global League and the zoning constraints, which prohibits non-sporting events being staged in the stadium. The application for the venue to be used as a multi-purpose venue needs to be driven by the property owner, the City of Johannesburg. We are still renting out suites as offices and eight suites were being leased as at 30 April Office space rental is picking up, but there is opportunity to fill up more of the vacant suites in the upcoming year. The Sports Medical Centre and the Elite Functioning Centre are growing. In addition to a well-equipped gym with personal trainers, it features a biokineticist, chiropractor, clinical psychologist, dietician, homeopath, sports physician, orthotist and prosthetist, physiotherapist, sports vision optometrist and a dentist will be joining in June Other non-match day revenues included Ster Kinekor screening the movie Rampage on 12 April 2018 as an outdoor movie. We are also currently in talks with the Nelson Mandela Foundation in terms of finalising the details for the Nelson Mandela Annual Lecture to be delivered by Barack Obama at the Bidvest Wanderers Stadium. Annual Reports

46 Lounge area in the media centre at Bidvest Wanderers Stadium in Johannesburg, South Africa. Open area in the media centre at Bidvest Wanderers Stadium where journalists are seated. 46. Annual Reports 2018

47 Q&A with Firdose Moonda, SA Correspondent for ESPNCricinfo Firdose Moonda is a sports journalist who has covered Test cricket all over the world. She is a massive fan of the Bullring and loves its open air atmosphere. Her match day experience at the stadium has now been improved further thanks to the R2.6 million upgrade of the media centre in How long have you been covering matches at the Bullring for? I have been visiting the Bullring in some capacity for work since 2005, making it 13 years in total. I have worked as a journalist since 2007, and have been in the press box for the last 11 years. What do you think of the upgrades to the media centre? I was very impressed with how the media centre changed this summer. In particular, the plug points on the desks, which offer multiple sources of connection, were a bonus. I would like to put on the record that the Bullring is the only stadium in South Africa in which the Wi-Fi worked consistently over all five days of a Test match, with good speed. The addition of a second women s cubicle in the toilet was also welcome. The chill, area at the back of the media centre was thoughtful. How have these upgrades improved your coverage experience? It has definitely made it easier to cover cricket in the stadium, knowing that everything works, as it should. Where else in the world have you covered cricket and how does the media experience at the Bullring compare to other top stadiums around the world? I have covered cricket in every other Test playing country and at various highprofile venues including Lord s, the MCG and Eden Gardens. What makes the Bullring stand out is that it is open-air, so the atmosphere is always within reach for us, which is very important to a lot of journalists. In my opinion, it is, by a distance, the top venue in South Africa, especially in terms of working comfort, space and Wi-Fi. What is it about the Bullring that you love? The Bullring is incredibly special to me. It is where I grew up watching cricket, where I started my career, first as a scorer and then as a journalist, and the place I enjoy coming back to every summer, even though I have moved away from Johannesburg. I love the vibe - to me there is no better crowd in the country than the (even half-full) Bullring bunch baying for blood. Equally I enjoy the Bullring when it is empty and only the sound of ball or bat or players clapping hands is amplified. It is a wonderfully atmospheric venue. I love the facilities and I love the people. What for you has been the highlight of your career covering matches at the Bullring? I enjoy every Test match I cover at the Bullring. The pitch and conditions always make for an interesting, action-packed game and I believe we need more venues that produce the type of contests the Bullring does if Test cricket is to stay alive. However, I have also enormously enjoyed the few PinkDays that I have been able to cover - I do not always travel for limited-overs matches - but it is important to me that cricket is played for a higher cause on occasion. The charitable aspect behind PinkDay and the importance the occasion has gathered is testament to the vision of the staff at the venue. The Bullring has done an excellent job in marketing PinkDay as an a must-attend event, and of building a brand around it. It is a highlight on the country s cricket calendar. Annual Reports

48 Strategic objective #5: Grow our fan base The Central Gauteng Lions is focused on developing an exceptionally strong fan and support base by developing strong brands that fans can relate to, creating an electric atmosphere at the Bidvest Wanderers stadium and by organising successful events. The Central Gauteng Lions is also responsible for growing fan support for its franchise, the bizhub Highveld Lions. 48. Annual Reports 2018

49 The marketing mission of the Central Gauteng Lions is to be the most supported cricket brand in South Africa, the best entertainment option and the venue of choice. As such, in 2016 a consolidated and revised strategy for our three brands, the Gauteng Cricket Board; the bizhub Highveld Lions and the Bidvest Wanderers Stadium, was put in place. A new name for the Gauteng Cricket Board In keeping with the directive to align our structures with the geopolitical demarcations of the province, the Gauteng Cricket Board was renamed the Central Gauteng Lions in the year under review. The new name represents the overarching cricket body for the West Rand, Sedibeng and the City of Johannesburg, while Lions and the corresponding lion s head logo, connects the brand to their franchise team the bizhub Highveld Lions. The hero marking of the new logo is a lion s head. This we believe is a natural progression from the bizhub Highveld Lions logo, and it will create uniform visibility across the pipeline that feeds into bizhub Highveld Lions. The logo also ties back to the heritage of the cricket played under the Central Gauteng Lions lying down Lion, and is reminiscent of the yellow clothing worn by our teams in recent years. Growing our fan base This financial year over 130,000 fans attended matches at the Bidvest Wanderers Stadium. One of our most popular events was Momentum ODI PinkDay, which was sold-out a month in advance. The Momentum ekasi Challenge remains an integral part of expanding the footprint of the game of cricket. This event allows us to develop township cricket facilities. We also place a great importance on fan engagement and undertake various programmes and initiatives to positively drive engagement. One initiative saw us drive inter-franchise rivalry online, with the bizhub Highveld Lions and the Titans engaging in friendly banter via our social media platforms much to the delight of fans. The Jukskei Derby continues to unfold and give us great engagement opportunities with our supporters. Furthermore, we undertook ticket-reward initiatives around key matches including a food-focused campaign at the South Africa vs. India Sunfoil Test match in January 2018, where fans could win a lunch experience. They were also encouraged to vote for the type of food they want to eat at the Bullring; this means we can tailor our food offering to meet their preferences at future events. We encouraged our fans to vote for their favourite historic South African cricketing moments at the Bidvest Wanderers Stadium. The Hashim Alma 100th test match / SA vs. Aus. 438 game / Smith 100th game was voted as the top historic moment by fans. Another fun initiative is our photo competition, where fans get to share photos of their favourite moment in the Bullring. Overall our marketing initiatives had a positive impact on fan support with attendance numbers staying relatively stable, even though the bizhub Highveld Lions had a poor season. Average domestic attendance at the T20 games was 3,877 in 2017/2018, marginally lower than the previous season s attendance figures of 4,024. In the 2017/2018 season 4,673 fans attended one-day domestic cricket; up from 4,269 in 2016/2017. However, the engagement levels of fans with domestic cricket remains below the preferred level, and we believe that there is a need for a national fan-based strategy to revitalise this. An iconic stadium experience Ensuring an unbeatable experience at the Bidvest Wanderers Stadium remains a key focus. To ensure we remain relevant and engaged we surveyed 1011 fans about their experience at the stadium, the results showed the atmosphere and vibe at Bidvest Wanderers Stadium is the most liked feature of the match-day. The Bidvest Wanderers Stadium now has state-of-the-art, multidisciplinary LED big screens. At over 200 square metres, these are the largest in-stadium screens in the Southern Hemisphere, and the largest of any screens utilised by the major cricketing nations. This means that no matter where our fans sit in the stadium they can watch the game uninterrupted and enjoy witnessing exciting cricketing moments on the big screen. We also entered into a partnership agreement with local comedian and sports fan Joey Rasdien and DJ Chrizz Beatz, they are now the voice and sound of the Bullring. Joey Rasdien has added a unique flavour to our events; his passion for cricket and engaging commentary adds value to the Bullring experience. We also created a Wanderers tweet-seat where comedian and cricket fan, Simi Areff provides entertaining commentary on the game via Twitter. Our fans enjoy this interaction and share and respond to his tweets. We remain committed to ensuring that all aspects of the stadium meet our fans expectations, as such we entered into a three-year agreement with Tile Africa to upgrade our washroom facilities. Further, in a bid to cater to diverse dietary and religious requirements, food stalls at the Bidvest Wanderers Stadium are now Halaal and Kosher, and there are also prayer room facilities available. The introduction of food trucks, market type food and various price point options has had a fantastic response from fans who seek a great day out when they come to the Bullring. Momentum ODI PinkDay Momentum ODI PinkDay was a resounding success this year with 23,693 people attending the game, and there wasn t a single seat available in the suites or in the stadium. South Africa continued their unbeaten run in pink, and fund-raising efforts saw us raise R1.7 million for the Breast Care Clinic at the Charlotte Maxeke Johannesburg Academic Hospital, a new beneficiary of Momentum ODI PinkDay. Each year we set out to make sure that the Momentum ODI PinkDay remains fresh, and this year was no different. Our ambassador programme worked well with many notable initiatives including our fashion ambassador David Tlale s specially designed Relate bracelet, which raised R90,000 for breast cancer. Miss South Africa, Adé van Heerden, was an ambassador for the day and helped promote the event on social media, this helped drive online engagement along with our #PitchUpInPink initiatives, the Facebook photo frame and Pink AfriSam trucks. The Durbanville Hills bubbly lounge was also very popular with guests, as was the fashion walk at the Momentum ODI PinkDay launch. Nielsen Sports analysis showed that the Pink ODI is also very popular on TV for those unable to attend the match, it achieved the biggest ODI audience on SuperSport of all ODIs, with a total unique audience of 3,976,004 with a viewing threshold for five minutes consecutive viewing. Further, there were a total of 9,029 online mentions by 4,705 authors related to Momentum ODI PinkDay. Sixty per cent of the conversation was positive, driven by South Africa s unbeaten record in pink, Andile Phehlukwayo s innings to win the match and the money raised for breast cancer awareness. In measurable PR terms, AVE for the day showed a reach of 117,883,662 with the Rand equivalent being R12,247,364 across print, online, radio and TV. We are grateful to all the organisations involved in making Momentum ODI PinkDay the success it is. Our thanks goes to Cricket South Africa, Bidvest Wanderers Stadium and Momentum, Bidvest, New Balance Cricket, Castle Lager, AfriSam Cement, JCB Kembach Pitch Rollers, 94.7, Lead SA, MegaPro, Circa, Sun International, Miss South Africa, WorldWide Sports, Gallo, T&W, Nielson, Stafanutti, ITW Group, WorkBench, Pretoria Chinese School, SABC, SuperSport, South African Breweries and Standard Bank Proteas and all the fans who attended the game. While Momentum ODI PinkDay is considered the event on the cricket calendar, we have other marketing events in place including the KFC T20 matches at the Bullring in honour of Nelson Mandela centenary celebrations. Annual Reports

50 Q&A with Carel Bosman, Sponsorship Manager, Momentum The Momentum PinkDay is one of the cricketing calendars most anticipated events, its success is thanks to the support of its sponsors and the world-class experience it offers. In 2017, PinkDay was sold out a month in advance and South Africa was undefeated once again. Momentum has been a sponsor of PinkDay for the last six years; Carel Bosman shares what PinkDay means for Momentum. How long has Momentum been sponsoring PinkDay for? Momentum is proud to have sponsored the Momentum ODI PinkDay since Why did Momentum first get involved in PinkDay? As the sponsor of the Momentum One Day Cup, expanding our cricket sponsorship to include PinkDay was a good fit. Not only because of our interest in cricket, but also because we sponsor a number of other initiatives in aid of breast cancer awareness and research. We are passionate about helping beat breast cancer, and the PinkDay is a great event working towards this important goal. What does your sponsorship involve? As the naming rights sponsor of the Momentum ODI PinkDay, we are part of the team that plans the event, working with the Central Gauteng Lions and Cricket South Africa to ensure that each year is better than the previous one. We also make a financial contribution towards the event, which extends to fun challenges on the day such donating R10,000 every time a six is hit into the Momentum family area zone. We also donate R100,000 if the ball makes a direct hit with the inflatable M on the field, however should this not happen we ll make the donation anyway. What makes the day so meaningful is the level of generosity all the partners show, including the cricketers who also make personal monetary contributions. What is it about PinkDay that makes it a good fit for Momentum? We believe that supporting breast cancer awareness is critical, as research shows that early detection can help save lives. This is in line with our philosophy that encourages and motivates people to be proactive about their health. We also know that PinkDay is an important cause to all our employees and their families, and are happy to sponsor it for this reason. Is there one memory of PinkDay that stands out for you? We have many great memories from PinkDay over the years, however this year will go down as one of our best, we literally smashed our own PinkDay targets. We raised R1.7 million on the day, against a target of R1 million. Also with the news that AB de Villiers is retiring from international cricket, the 2018 PinkDay will also be always be remembered as the standout event of AB de Villiers career, where he blazed the fastest century in ODI history, scoring an incredible 149 off 44 balls. What do you think contributes to PinkDay s ongoing success? To pull together a world-class event like as PinkDay takes passion and hard work, and its resounding success is due in part to the unwavering commitment of all partners. However special commendation should go to the Central Gauteng Lions team, the driving force behind this great event. 50. Annual Reports 2018

51 Wanderers during the Momentum ODI PinkDay match between South Africa and India at Bidvest Wanderers Stadium on 10 February 2018 in Johannesburg, South Africa. (Photo by Sean Brand) Funds raised by Momentum ODI PinkDay Bidvest Wanderers Stadium R56,000 Momentum R100,000 Players (Standard Bank Proteas) R100,000 from their PinkDay match fees Protea team sponsor Standard Bank matched the players donation of R100,000 AfriSam ran a social media campaign and donated R100,000 JCB Kembach donated bright pink pitch rollers and donated R5,000 SAB and Castle Lager R40,000 New Balance R10,000 from sales of replica pink Protea shirts. David Tlale s specially designed Relate bracelet - R90, Breakfast Club held an on-air live auction, with MTN blowing the competition away with a winning bid for R150,000 SuperSport also held an online auction of memorabilia raising R400,000. Wanderers during the Momentum ODI PinkDay between South Africa and India at Bidvest Wanderers Stadium on 10 February 2018 in Johannesburg, South Africa. (Photo by Sean Brand) Pink helmets, signed by the players, were also auctioned to corporate sponsors and brought in close to R150,000 Annual Reports

52 Q&A with Rosalynne Goldin, Managing Director of Nielsen Sports South Africa For the Central Gauteng Lions to remain competitive in a challenging market for both sports and stadiums, it is important to have an in depth understanding of their audiences. In April 2018, the Central Gauteng Lions conducted research around the stadium experience at the Bidvest Wanderers Stadium and on PinkDay, in order to better understand what fans thought of the experience. Rosalynne Goldin, MD of Nielsen Sports South Africa shares the feedback. 1. How many fans did you survey in total? Did you cover both topics in one survey? The survey included two sections: 1) Stadium experience and 2) PinkDay. Both topics were covered in the one survey. A total of 1,011 fans completed Section 1. Those that did not attend PinkDay were routed out, leaving 407 fans to complete surveys for Section FAN EXPERIENCE SURVEY The diversity of the crowd, people socializing and walking everywhere. Best stadium experience ever Clean, organised, safe. Convenient bar and food stalls friendly staff and security, perfect pitch 2. What was the demographic breakdown of your sample? Stadium experience: PinkDay: (Note: random sampling was utilised from the contained environment of the Cricket SA ticketing database, filtered by Gauteng purchasers, which has the same racial profile of the current cricket audience, as opposed to a nationally representative SA sample. The ticketing database was used in order to more efficiently find fans who had recently attended Wanderers and also PinkDay). 52. Annual Reports 2018

53 TOP RANKED ELEMENTS AT BIDVEST WANDERERS STADIUM THE ATMOSPHERE 98% VALUE FOR MONEY 87% SATISFACTION LEVELS WITH OVERALL LIVE EXPERIENCE AT BIDVEST WANDERERS STADIUM COMBINED AVERAGE: 97% BLACK 98% COLOURED 98% INDIAN 96% WHITE 94% SEATING 84% SAFTEY AND SECURITY 83% HELPFUL STADIUM STAFF 78% BEVERAGES ON OFFER 78% MUSIC 75% FOOD ON OFFER 73% ENTERTAINMENT 72% TOILETS 71% Annual Reports

54 3. Please provide detail of what exactly you surveyed them on? On the stadium experience we surveyed them on reasons for nonattendance. For those that did attend we surveyed them on what makes a good live sporting experience and asked them to measure their satisfaction levels. We also asked them for specific likes and dislikes about their stadium experience. For PinkDay we explored fans understanding of what PinkDay means and what corporate social responsibility cause it supports. We measured agreement with various positioning statements about PinkDay and measured satisfaction levels with PinkDay activation elements. We also explore preferred donation mechanisms and how fans may be encouraged to donate more. We also sought to identify the most effective communications channels vs preferred communications channels. For both sections, results were analysed at an overall level and then by race group, in order to ascertain any significant differences and/or similarities, which may have an impact on strategy. 4. What were some of your main take-outs from the research conducted? Some of the take-outs from our stadium experience survey include: - 97% of respondents are very happy with the stadium experience at Bidvest Wanderers, with over half extremely satisfied - Stadium atmosphere receives the highest ranking with a resounding 98% satisfaction - Fans also highly rate specific Bidvest Wanderers elements which they regarded as making a good live sporting experience - Value for money receives a 87% satisfaction rating which is a positive result in a difficult economic environment - Overall, Bidvest Wanderers continues to be highly regarded as an appealing sporting venue. It is also a welcoming and enjoyable venue for all races. This embracing of all cultures is a noteworthy result which supports cricket s positioning as the sport for all South Africans 2018 MOMENTUM ODI PINKDAY SURVEY A great initiative that brings together South Africans from all walks of life to show support towards the fight against cancer and to support the Proteas. The most fun you will have in pink. It s vibrant, lively and you can feel the energy in the stadium... and it s all for a good cause. Our PinkDay survey showed: - 99% of respondents believe that the Momentum ODI PinkDay is a great live sporting experience and 84% view it as being more enjoyable than other live cricket matches, which is a very successful result - Importantly 98% agree that the chosen CSR campaign is an important initiative for cricket to support - 100% of respondents cite cancer as the initiative being supported, while 78% know it was specifically regarding breast cancer. 82% of respondents knew how to donate to the campaign. All of these results are a positive endorsement of the communications efforts 5. How can the research assist the Central Gauteng Lions in achieving their vision of creating an unrivalled passion for cricket in Gauteng? Research is critical to be able to make informed decisions to support and deliver the strategies, which will achieve the vision. Objective and independent data is a key success factor in marketing management, as it provides fan insights, monitors improvements and highlights weaknesses. An ongoing process of measurement and monitoring will assist Central Gauteng Lions to grow and sustain their cricket brand, and ultimately achieve their vision. 6. Why is it important for an organisation like the Central Gauteng Lions to undertake this kind of exercise? In it important to have an in-depth understanding of the audience with regards to what influences their perception and consideration of whether to attend and to return to the Bidvest Wanderers. Knowledge is power and knowing what the target market thinks, needs and wants is essential to be able to deliver a world-class, competitive and sustainable product. 54. STATEMENTS REGARDING THE MOMENTUM ODI PINK DAY A GREAT LIVE SPORTING EXPERIENCE 98% AN IMPORTANT SOCIAL INITIATIVE FOR CRICKET TO SUPPORT MORE ENJOYABLE THAN OTHER LIVE CRICKET MATCHES 87% 84% KNEW HOW YOU COULD DONATE 83% ATTENDED SPECIFICALLY FOR SOCIAL RESPONSIBILITY 78% Wanderers during the Momentum ODI PinkDay between South Africa and India at Bidvest Wanderers Stadium on 10 February 2018 in Johannesburg, South Africa. Annual Reports 2018

55 SATISFACTION WITH ACTIVATION ELEMENTS PROTEAS WEARING PINK KIT 97% PINK STADIUM BRANDING 93% PITCHUPINPINK CAMPAIGN 89% What do cricket fans eat? The Bidvest Wanderers has partnered with Master Concessionaires, Main Event Catering to give fans an incredible gastronomic experience on match days. In the past season our fans consumed: 17,400 chip n dips 3,500 cups of coffee 9,500 hotdogs 4,500 chicken burgers, 6,700 burgers and boerewors rolls 3,000 mini doughnut packets WHAT DOES THE MOMENTUM ODI PINKDAY SPECIFICALLY SUPPORT? BREAST CANCER AWARENESS 78% 100% OF RESPONSES RELATED TO CANCER AWARENESS 1,200 1,200 1,600 4,500 fish n chips tacos shawarmas pregos rolls Annual Reports

56 Strategic objective #6: Building a commercially successful and financially sustainable company The Central Gauteng Lions aims to build a commercially successful and financially sustainable company by ensuring strong brands, growing the base of funding and creating multiple revenue streams. 56. Annual Reports 2018

57 Chief Financial Officer s report for the year ended 30 April 2018 The 2017/18 financial year started on a positive note. We placed 2nd (5th in 2016/17) in the Cricket South Africa Incentive Scorecard process and were awarded R800,000 by CSA for our efforts. However, our financial year also started full of uncertainty. There was much speculation of a privately owned T20 Franchise League coming to South Africa, and much discussion about what that would mean to the union from a revenue and profit perspective, and also how it would impact the existing franchise structure. However, India and Cricket South Africa were unable to come to an agreement on tour dates and fixtures and the India tour was as a result only confirmed in late September. This was then followed by the announcement in early October that the T20 Global League would be postponed. The impact on our business was significant. I am however proud of what we achieved from a suite and hospitality revenue perspective. Usually we are in the market with confirmed fixtures by the middle of August each year, this gives corporates some time to decide on whether they will take a suite for the season. However, when the T20 Global League was postponed suddenly, and the Domestic Ram Slam was suddenly thrust back into November/December window, it resulted in poor attendance, which meant we drastically fell short of our attendance targets. With the T20 Global League set to start in November, increased pressure from CSA meant that facilities around the stadium needed to be upgraded. Further compliance with the new Safety at Sports and Recreational Events Act (SASREA) was of paramount importance. The upgrades were made to the Media Centre including the installation of a new LED scoreboard, upgrades to the existing CCTV system and a new access control system across the stadium. Compliance with SASREA also came with a hefty price tag, and while this impacted our finances, we are proud to say we are one of few stadiums who are now fully compliant under the new Act. With all these capital expenses our depreciation charge has increased drastically, when compared to budget. The unbudgeted charge for the year was R366,672. Depreciation was not the only charge that exceeded budget; we continue to have issues with our City of Johannesburg related accounts. Our electricity bill consistently increases, even though we place most of our power needs on two generators. Further, Johannesburg Metropolitan Police Department fees for match day services are significant. We are hopeful that there will be some relief on these fees following discussions with the Mayor s office. From a stadium revenue perspective, we were proud that our one-day international events sell-out well in advance. However, due to the current Host Venue Agreement in place with CSA, this achievement presents little financial benefit to the Central Gauteng Lions as only 30 per cent of net gate revenue comes back to the host union. We did however manage to grow our hospitality product on one-day international days significantly from a budget of R2.5 million to actuals of over R3.8 million. As stated previously, we are continually looking to secure additional revenue generation opportunities, as we would like to move towards a 365 day-a-year revenue model, rather than one that is only linked into major cricket events. Our office rentals form part of this strategy, with revenue growing in the period from R1.7 million to R2.1 million year-onyear. Rebates from stadium suppliers also added a new type of revenue to our model. Further, continued negotiations with our suppliers, enabled savings of R95,000 due to early settlement discounts. From a cricket development perspective, we did not receive National Lottery Funding this financial year as the National Lottery Commission funded the Commonwealth Games team instead. In comparison in 2015/16 we received R2.6 million from the National Lottery Commission, we are hopeful that in 2018/19 we will receive this funding again. Our Board of Directors made a decision this year to assist previously disadvantaged clubs; as a result we invested R870,000 in helping them maintain their facilities and other key initiatives. Our funds allocated were used to purchase rollers and pitch covers, and were also allocated to coaching subsidies. While it is to our benefit to help these clubs as key feeders of our pipeline, the provincial government should have allocated these costs, as they are responsible for the maintenance of these facilities. On reflection, we entered 2017/2018 recognising it was going to be challenging to make a profit. We had two test matches scheduled for the period, and generally our loss on a test match is around R1 million. This was further impacted as stated above with the lack of funding received from the National Lottery and extraordinary extra expense incurred including our investment in the previously disadvantaged clubs and significant stadium upgrades. Given these circumstances, and our efforts to increase revenue streams, I believe we can be proud of the efforts we put in place to limit our pre tax loss for the year to R545,116 Barry Whitfield Chief Financial Officer Barry Whitfield (Chief Financial Officer) Annual Reports

58 Central Gauteng Lions NPC (Registration Number 1977/002554/08) Consolidated and Separate Annual Financial Statements for the year ended 30 April 2018 INDEX The reports and statements set out below comprise the consolidated annual financial statements presented to the shareholder: General Information 59 Director Responsibilities and Approval 60 Director s Report 61 Statement of Financial Position 62 Statement of Profit or Loss and Comprehensive Income 63 Statement of Changes in Equity Statement of Cash Flow Annual Reports 2018

59 General information COUNTRY OF INCORPORATION AND DOMICILE South Africa NATURE OF BUSINESS AND PRINCIPAL ACTIVITIES Promotion, administration, development and co-ordination of cricket and to market and manage the Bidvest Wanderers Stadium and associated facilities for sporting events. DIRECTORS JM Madiseng (President) NA Vilas (Vice President) M Majam (Vice President) MS Sacher (Treasurer) DJ Terbrugge (Lead Independent Director) GA Fredericks (Chief Executive Officer) KS Muller F Habib (*) S Dzengwa (*) M Ratshimbilani (*) N Sibiya BG van Rooyen ZF Buthelezi (*) BF Lesele (**) MS Patterson (**) YA Manack (**) GL Le Pere (**) * Independent director ** Alternate director REGISTERED OFFICE Bidvest Wanderers Stadium Corlett Drive Illovo 2196 BANKERS ABSA Bank Limited First Rand Bank Limited AUDITORS PricewaterhouseCoopers Inc Waterfall City 4 Lisbon Lane Juskei View Midrand COMPANY SECRETARY SA Company Formations Pinnacle Building 9th Floor Burg Street Cape Town 8001 PREPARER EC Stander B Compt, B Com Law Professional Accountant (SA) Annual Reports

60 Directors responsibilities and approval The directors are required by the South African Companies Act to maintain adequate accounting records and are responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to ensure that the consolidated annual financial statements satisfy the financial reporting standards as to form and content and present fairly the consolidated and separate statement of financial position, results of operations and business of the Group, and explain the transactions and financial position of the business of the Group at the end of the financial year. The consolidated annual financial statements are based upon appropriate accounting policies consistently applied throughout the Group and supported by reasonable and prudent judgements and estimates. The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the company and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the Group and all employees are required to maintain the highest ethical standards in ensuring the Group s business is conducted in a manner that in all reasonable circumstances is above reproach. The directors believe that all representations made to the independent auditor during the audit were valid and appropriate. The financial statements enclosed herein are summary financial statements. The complete set of Consolidated and Separate Audited Annual Financial Statements for the year ended 30 April 2018 are available on our website or on request. The consolidated and separate annual financial statements as set out on pages 62 to 66 were approved by the board on 2 August 2018 and were signed on their behalf by: JM Madiseng (President) GA Fredericks (CEO) The focus of risk management in the Group is on identifying, assessing, managing and monitoring all known forms of risk across the Group. While operating risk cannot be fully eliminated, the Group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The directors are of the opinion, based on the information and explanations given by management and the external auditors, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated and separate annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The going-concern basis has been adopted in preparing the financial statements. Based on forecasts and available cash resources the directors have no reason to believe that the Group will not be a going concern in the foreseeable future. The consolidated financial statements support the viability of the Group. The financial statements have been audited by the independent auditing firm, PwC, who have been given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the board of directors and committees of the board. 60. Annual Reports 2018

61 Directors report The directors present their report for the year ended 30 April Review of Activities Main business and operations The principal activity of the Group is promotion, administration, development and co-ordination of cricket and to market and manage the Bidvest Wanderers Stadium and associated facilities for sporting events. There were no major changes herein during the year. The operating results and consolidated statement of financial position of the Group are fully set out in the attached financial statements and do not in our opinion require any further comment. 2. Going Concern The consolidated and separate annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 3. Events after reporting date All events subsequent to the date of consolidated annual financial statements and for which the applicable financial reporting framework require adjusted or disclosed. The directors are not aware of any matter or circumstance arising since the end of the financial year to the date of this report that could have a material effect of the financial position of the company. 4. Directors interest in contracts 7. Directors The directors of the company during the year and to the date of this report are as follows: JM Madiseng (President) NA Vilas (Vice President) M Majam (Vice President) MS Sacher (Treasurer) DJ Terbrugge (Lead Independent Director) GA Fredericks (Chief Executive Officer) KS Muller F Habib (*) S Dzengwa (*) M Ratshimbilani (*) N Sibiya BG van Rooyen ZF Buthelezi (*) BF Lesele (**) MS Patterson (**) YA Manack (**) GL Le Pere (**) * Independent director ** Alternate director 8. Secretary The Group s designated secretary is SA Company Formations. 9. Independent Auditors PwC were the auditors for the year under review. To our knowledge none of the directors had any interest in contracts entered into during the year under review. 5. Borrowing Limitations In terms of the Memorandum of Incorporation of the company, the directors may exercise all the powers of the company to borrow money, as they consider appropriate. 6. Dividends No dividends were declared nor paid to the shareholder during the year. Annual Reports

62 Statements of financial position Figures in R Group 2018 Group 2017 Company 2018 Company 2017 Assets Non-Current Assets Property, plant and equipment Intangible assets Investment in subsidiary Deferred taxation assets Current Assets Investments Current taxation asset Trade and other receivables Cash and cash equivalents Total Assets Equity and Liabilities Equity Retained earnings Non-controlling interest Non-Current Liabilities Loans from related parties Deferred revenue Current Liabilities Provisions Trade and other payables Loans from related parties Deferred revenue Total Equity and Liabilities Annual Reports 2018

63 Statements of profit or loss and comprehensive income Figures in R Group 2018 Group 2017 Company 2018 Company 2017 Revenue Other income Operating costs ( ) ( ) ( ) ( ) Operating Loss ( ) ( ) ( ) ( ) Finance income Finance costs ( ) (3 787) ( ) (186) Profit before taxation ( ) ( ) Taxation expense ( ) ( ) Profit for the year ( ) Total comprehensive income attributable to: Non-controlling interests ( ) Owners of the parent ( ) ( ) Annual Reports

64 Statements of changes in equity Figures in R Note(s) Retained earnings Equity attributable to company Non-controlling interest Total Group Balance at 1 May Total comprehensive income for the year Total other comprehensive income Total comprehensive income for the year Balance at 30 April Balance at 1 May Total comprehensive income for the year Loss for the year ( ) ( ) - ( ) Total other comprehensive income ( ) Total comprehensive income for the year ( ) ( ) ( ) ( ) Balance at 30 April Annual Reports 2018

65 Statements of changes in equity Figures in R Note(s) Retained earnings Total Company Balance at 1 May Total comprehensive income for the year Total other comprehensive income Total comprehensive income for the year Balance at 30 April Balance at 1 May Total comprehensive income for the year Loss for the year Total comprehensive income for the year Balance at 30 April Annual Reports

66 Statements of cash flows Figures in R Group 2018 Group 2017 Company 2018 Company 2017 Cash flows from operating activities Profit for the year ( ) Adjustments for: Finance costs Income tax ( ) ( ) Amortisation of Intangible assets Depreciation of Property, plant and equipment Finance income ( ) ( ) ( ) ( ) Profit on sale of assets ( ) - ( ) Deferred revenue ( ) ( ) ( ) ( ) Other reserves (8 773) - (8 773) Operating cash flow before working capital changes ( ) ( ) ( ) ( ) Working capital changes Increase in financial assets ( ) ( ) Increase in trade and other receivables ( ) ( ) ( ) ( ) Increase in trade and other payables Cash utilised in operating activities ( ) ( ) Finance income Finance costs ( ) (3 787) ( ) (186) Deferred revenue - Cash Received Income tax paid Net cash from operating activities Cash flows from investing activities Property, plant and equipment acquired ( ) ( ) ( ) ( ) Intangible assets acquired - ( ) - ( ) Proceeds for disposals of assets Net cash utilised in investing activities ( ) ( ) ( ) ( ) Cash Flow from financing activities Loans raised Loans repaid ( ) - ( ) - Net cash utilised in financing activities (Decrease)/Increase in cash and cash equivalents ( ) ( ) Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Annual Reports 2018

67 bizhub Highveld Lions celebrates the wicket of Quinton de Kock of the Titans during the RAM SLAM T20 Challenge match between Multiply Titans and bizhub Highveld Lions at SuperSport Park on 10 November 2017 in Pretoria, South Africa. (Photo by Lee Warren/Gallo Images) Annual Reports

68 Lions celebrate the wicket of Richard Levi of the WSB Cape Cobras during the RAM SLAM T20 Challenge match between WSB Cape Cobras and bizhub Highveld Lions at Boland Park on 24 November 2017 in Paarl, South Africa. (Photo by Ashley Vlotman/Gallo Images) 68. Annual Reports 2018

69 Report of the bizhub Highveld Lions Annual Reports

70 Our Board Dr Monyane Nkagisang (President and Chairman) Jack Madiseng (Vice President) Greg Fredericks (Chief Executive Officer) Joseph Maswanganyi Jan Weideman David Terbrugge Ntsongo Sibiya Vincent Prior Mohammed Majam 70. Annual Reports 2018

71 Coaching staff Geoffrey Toyana (Head Coach) Gordon Parsons (Bowling Coach) Craig Govender (Physiotherapist) Jeff Lunsky (Fitness Trainer) Justin Sammons (Batting Coach) Annual Reports

72 Message from the Chairman The bizhub Highveld Lions had a disappointing season. The Lions finished bottom of the log in the Sunfoil Series, fifth in the Ram Slam T20 Challenge and the Momentum One Day Cup. As a team we could have done better and while we are proud of our players being selected to represent South Africa, a loss of form in the batting unit weighed heavily on our overall performance. As such we have implemented a turnaround strategy to address on-field performance, as well as the performance of our leadership and coaching staff. Our Board is very clear on its intention; we are focusing on turning around the Lion s fortunes in order to take charge of the domestic franchise competitions in the upcoming season. In order to achieve this, we are making changes as required and a number of coaching management were either replaced or moved to new roles where we believe their skills will help improve team s performance. Dr Monyane Nkagisang Revitalising the Lion s cricket franchise I believe that we now have the foundation in place to ensure a revival of the much loved Lion s franchise and I look forward to seeing what the team has in store for us in the 2018/2019 season. We are making significant changes across the board, from coaching staff to the player level. Each appointment will be based on merit, as we know that it is only competent people that will help us realise our vision, and all systems must support our overall strategy. All personnel will have strong performance clauses in their contracts, as we believe it is clauses such as these that will help foster a culture of excellence. On the coaching side we recently appointed former Lion s cricketer Enoch Nkwe as Head Coach. We are confident that not only will Enoch make an immediate impact; he will also have a sustainable influence on the team so that we will continue to deliver excellent players to the national team. Enoch replaces Geoffrey Toyana who will now take on the newly created position of High Performance Coach. It is also our intention to further bolster the team; in the coming months we will either appoint or renew the contracts of our bowling coach, the strength and conditioning coach and team physiotherapist. Dr Monyane Nkagisang Chairman At a team level we are delighted that South African test batsman Temba Bavuma is returning to the Lions after a short stint at the Cape Cobras. Temba is an excellent example of a player we brought through our structures, and we are proud of the world-class cricketer that he has become, he will be a great asset to the team. We have also undertaken a full review of the team and have appointed four new players. We believe their combined talents will set our team on the path to success. Looking forward I would like to extend my appreciation to the Board and Greg Fredericks and his team for their support during what can only be described as a challenging year. My thanks also goes to our coaching staff for their ongoing commitment and efforts in the season. 72. Annual Reports 2018

73 Mangaliso Mosehle of the Lions during the RAM SLAM T20 Challenge match between bizhub Highveld Lions and WSB Cape Cobras at Bidvest Wanderers Stadium on 17 November 2017 in Johannesburg, South Africa. (Photo by Lee Warren/Gallo Images) Annual Reports

74 Financial review 74. Annual Reports 2018

75 Chief Financial Officer s report for the year ended 30 April 2018 The 2017/18 year will not be viewed as successful one from a team perspective as we failed to generate any prize money during the season. There were however, great individual performances which earned players call ups to South Africa A and The Proteas. The impact on the CSA Franchise salary cap is still a burden on the franchise. Players still have high salary expectations for a franchise based in the country s economic hub. From a sponsorship generation perspective we found it difficult to hit revenue targets after two poor seasons in a row. Changes to the coaching staff compliment, already in process at year end, aim to rectify this. Barry Whitfield As a result, a pre-tax loss of R2,323,652 for the year is reported. This in comparison to a profit of R51,432 in 2016/17. Barry Whitfield Financial Manager Annual Reports

76 Directors responsibilities and approval (Registration Number 2003/031558/07) Audited Annual Financial Statements for the year ended 30 April 2018 The directors are required by the South African Companies Act to maintain adequate accounting records and are responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to ensure that the annual financial statements satisfy the financial reporting standards as to form and content and present fairly the statement of financial position, results of operations and business of the company at the end of the financial year. The annual financial statements are based upon appropriate accounting policies consistently applied throughout the company and supported by reasonable and prudent judgements and estimates. complete set of Audited Annual Financial Statements for the year ended 30 April 2018 are available on our website or on request. The annual financial statements as set out on pages 78 to 81 were approved by the board on 2 June 2017 and were signed on their behalf by: The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the company and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the company and all employees are required to maintain the highest ethical standards in ensuring the company s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the company is on identifying, assessing, managing and monitoring all known forms of risk across the company. While operating risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The goingconcern basis has been adopted in preparing the financial statements. Based on forecasts and available cash resources the directors have no reason to believe that the company will not be a going concern in the foreseeable future. The financial statements support the viability of the company. The financial statements have been audited by the independent auditing firm, PwC., who have been given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the board of directors and committees of the board. The directors believe that all representations made to the independent auditor during the audit were valid and appropriate. The financial statements enclosed herein are summary financial statements. The Dr MG Nkagisang (President) GA Fredericks (CEO) 76. Annual Reports 2018

77 Directors report The directors present their report for the year ended 30 April Review of Activities Main business and operations The principal activity of the company is marketing and management of cricket teams that play domestic cricket, as well as all activities ancillary or related thereto. There were no major changes herein during the year. The operating results and statement of financial position of the company are fully set out in the attached financial statements and do not in our opinion require any further comment. 2. Going Concern The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 3. Events after reporting date The directors are not aware of any matter or circumstance arising since the end of the financial year to the date of this report that could have a material effect of the financial position of the company. 4. Directors interest in contracts To our knowledge none of the directors had any interest in contracts entered during the year under review. 5. Authorised and issued share capital 8. Directors The directors of the company during the year and to the date of this report are as follows: MG Nkagisang (President) JM Madiseng (Vice President) GA Fredericks (Chief Executive Officer) V Prior (General Manager) J Maswanganyi J Weideman D Terbrugge N Sibiya M Majam 9. Secretary The company s designated secretary was Johannes Jacobus Ebersohn. 10. Shareholders There have been no changes in ownership and the shareholders remain: % Central Gauteng Lions NPC 55 North West Cricket NPC Independent Auditors PwC were the auditors for the year under review No changes were approved or made to the authorised or issued share capital of the company during the year. 6. Borrowing limitations In terms of the Memorandum of Incorporation of the company, the directors may exercise all the powers of the company to borrow money, as they consider appropriate. 7. Dividends No dividends were declared nor paid to shareholders during the year. Annual Reports

78 Statement of financial position Figures in R Assets Non-Current Assets Property, plant and equipment Intangible assets Deferred taxation assets Current Assets Current taxation asset Trade and other receivables Cash and cash equivalents Total Assets Equity and Liabilities Equity Issued capital Retained earnings Current Liabilities Provisions Trade and other payables Total Equity and Liabilities Annual Reports 2018

79 Statement of profit or loss and comprehensive income Figures in R Revenue Operating costs ( ) ( ) Operating (loss)/profit ( ) ( ) Finance income Finance costs - (3 601) Profit before taxation ( ) Taxation expense (18 933) Profit for the year ( ) Annual Reports

80 Statement of changes in equity Figures in R Share Capital Retained earnings Total Balance at 1 May Total comprehensive loss for the year Profit for the year Total comprehensive loss for the year Balance at 30 April Balance at 1 May Total comprehensive income for the year Profit for the year ( ) ( ) Total comprehensive income for the year - ( ) ( ) Balance at 30 April Annual Reports 2018

81 Statement of cash flows Figures in R Cash flows from operating activities Profit before tax ( ) Adjustments for: Finance costs Income tax paid ( ) ( ) Amortisation of Intangible assets Depreciation of Property, plant and equipment Finance income ( ) ( ) Operating cash flow before working capital changes ( ) ( ) Working capital changes (Increase)/decrease in trade and other receivables ( ) ( ) (Decrease)/increase in trade and other payables ( ) Cash (utilised in)/generated by operating activities ( ) ( ) Investment income Finance costs - (3 601) Income tax paid - (77 000) Net cash from operating activities ( ) ( ) Cash flows from investing activities Property, plant and equipment acquired (35 754) (45 325) Intangible assets acquired - (99 800) Net cash utilised in investing activities (35 754) ( ) (Decrease)/increase in cash and cash equivalents ( ) ( ) Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Annual Reports

82 Notice of Annual General Meeting Central Gauteng Lions (NPC) Registration Number: 1977/002554/08 Notice is hereby given that the 41st Annual General Meeting of members of Central Gauteng Lions (NPC) [Previously Gauteng Cricket Board] ( the Company ) will be held in the Longroom, Unity Pavillion, Bidvest Wanderers Stadium, Corlett Drive, Illovo, 2196, on Wednesday, 15 August 2018 at 18h30 to: a) Deal with the business of the AGM as set out in the MOI (See attached Agenda) Specifically: For the sake of clarification: b) Kindly note in accordance with the MOI: - i) Quorum Requirements for Members Meetings During Transitional Period These quorum requirements are subject to the particular quorum requirements applicable to Members meetings during the Transitional Period as set out hereunder: ii) Quorum for Ordinary Resolutions: Quorum with reference to the attendance at any general meetings, including AGM of GCB during the Transitional Period, shall mean voting members present by authorized representative or by proxy and representing 51% (fifty-one percent) of the total voting rights entitlement of each Interest Group, provided that the authorized representatives of at least 50% (fifty percent) of the voting members from each Interest Group must be present in person; A member (or its duly nominated delegate(s)) entitled to vote at the Annual General Meeting may appoint a proxy or proxies to attend and speak and vote in his/her stead. A proxy need not be a member of the Company. Completed proxy forms should be received at the registered office of the Company not less than 24 hours before the time appointed for the holding of the Annual General Meeting. c) Staggering of directors [accepted at Special General Meeting 28th September 2016 and implemented at the AGM 26 July 2017] 14.1 The need to retain valuable skills d) The CGL Audit and Risk Committee at a meeting held on 23 July 2018, recommended the appointment of Independent Auditors PWC for the financial year ending 30 April The resolution to be adopted is :- IT IS RESOLVED THAT PWC who are independent of the Company, be appointed as the Company s [Central Gauteng Lions] external auditors for the financial year ending 30 April e) It is important to note that the Annual Financial Statements for the year ended 30 April 2018 are not accompanying this notice. This is due to delays experienced as a result of the late appointment of PWC. The Annual Financial Statements will be circulated upon signature. 82. AGENDA OF ANNUAL GENERAL MEETING OF CENTRAL GAUTENG LIONS (NPC) TO BE HELD AT THE BIDVEST WANDERERS STADIUM, WEDNESDAY, 15 AUGUST 2018 AT 18:30 1. OPENING AND WELCOME 2. APOLOGIES 3. CONFIRMATION OF AGENDA AND NOTICE OF MEETINGS 4. ADOPTION OF PREVIOUS MINUTES OF THE 26 JULY MATTERS ARISING FROM PREVIOUS MEETING 6. CONSIDER THE REPORT OF THE BOARD FOR THE PERIOD UNDER REVIEW AND TO RECEIVE AND ADOPT AUDITED FINANCIAL STATEMENTS OF THE COMPANY FOR IMMEDIATELY PRECEDING FINANCIAL YEAR ENDED 30 APRIL 2018: Presidential Address/Directors Report 6.2 CEO s Report 6.3 CFO Report and adoption of AFS 7. CONFIRM THE APPOINTMENT OF: 7.1. Non-Independent Director/s 7.2. Independent Director/s 7.3. Alternate Director/s 7.4. Honorary patron pursuant to paragraph 24.1 of the company s memorandum of incorporation ( MOI ); 7.5. Honorary life presidents pursuant to paragraph 24.2 of the MOI; 7.6. Honorary life vice presidents and to appoint any additional honorary life vice presidents nominated pursuant to paragraph 24.1 of the MOI; 8. APPOINT AUDITORS PURSUANT TO PARAGRAPH 26.1 OF THE MOI; 9. FIX REMUNERATION OF THE AUDITORS; 10. SPECIAL BUSINESS OF WHICH DUE NOTICE HAS BEEN GIVEN; 11. GENERAL BUSINESS. 12. CLOSURE By order of the Board. G FREDERICKS CHIEF EXECUTIVE OFFICER 24 July 2018 Gauteng Cricket Board (NPC) (Reg. No. 1977/002554/08) Registered office: The Bidvest Wanderers Cricket Stadium Corlett Drive Illovo P O Box 55309, Northlands, 2116 Annual Reports 2018

83 Notes Annual Reports

84 Notes 84. Annual Reports 2018

85 Notes Annual Reports

86 Stakeholder information & contact details Central Gauteng Lions Bidvest Wanderers Stadium Corlett Drive Illovo 2116 Telephone Number: Websites: Annual Reports 2018

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