Lawrence T Wong accepts Superbrand Award naming The Hong Kong Jockey Club top Hong Kong Brand.

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1 corporate management Doing more with less The challenge in a time of uncertainty is to provide what our Members and the public are used to receiving from the Club and a little bit more but do it with less money and more home-grown talents of our people. The men and women of The Hong Kong Jockey Club are pulling together to accomplish just that and we are proud to say this organisation is as strong as it has ever been and well able to stand up to whatever the economy and any other force that can affect Hong Kong attempts to throw at us again. No one wants to relive the strains of last season, but we are ready for anything now. Lawrence T Wong accepts Superbrand Award naming The Hong Kong Jockey Club top Hong Kong Brand. ผ ፕ ݯ ಋ ज़ ۂ ಶ ᐢ ڥ c ඡϭࡄˤ ٲ ეᆉe

2 Review of operations: Corporate management พ Αᚋl พ ଉ Bringing world class sporting entertainment and premier charity support to Hong Kong at a time of economic downturn and turnover decline is the Club s challenge. We have been mostly successful thanks to a policy of cost management, productivity enhancement and employee performance management. Across the Club, efforts are underway to eliminate low-value-added services, retire under-utilized capacity and streamline work processes. Though the Club expanded its racing programme and forged ahead with product and service development, costs per race have been maintained at 1993/1994 levels. Still, Hong Kong s economic difficulties, the dramatic impact of SARS and continued illegal and unauthorised offshore gambling hit hard. Because of this and to align the Club with market rates, we authorised pay reductions, including ending the year-end payment for non-management employees and reducing base pay for management-grade employees by eight to 10 percent. We link pay to performance and we will continue with variable performance awards. In view of our staff s loyalty and performance, we decided maintaining job security is the priority. Football betting In response to Government s proposal to authorise football betting, with the Club as licensee, the Club established a subsidiary, HKJC Football Betting Limited. The Club created systems and recruited industry professionals to ensure fast and efficient service. Providing employment for Hong Kong The Club contributes significantly to Hong Kong through 4,204 full-time and 14,152 part-time jobs. In May, partly in preparation for football betting, the Club undertook a major recruitment drive through the HKJC Job Fair. The 3,600 full and part-time positions offered across managerial, supervisory and operational roles attracted 48,000 applicants. It was a widely publicised piece of good news at a difficult time. พ ଉ ᄈ ຝ ݚ ྊɺ ע cଡ ک ɣ ܥؿ ኝc ຝ ޘ Ꮺ ʻd ΔɁɷdᄈ ɮА ऩcɈұၐ ܛ ผࡗʥ ʔଠ ؿ ȹ ר cᑹ Ґ ר ሔ ঢ়eȹ ق Ԟc ผɐ Ɏя ϊ ݯ ɯ cͳ ȹʶcᆺ ԙᐜcʌˀյ ሣ๕ ผ ܥؿ ࠍ ک ኝc ΣЄΕ Ꮬ ɺౡdҙ ᔾɎࠌ ؿ Ɏcᘗᙩ ݯ ಋ Ԟ ވ ज़ ؿ ᑩ ᅥc ʥၐ ܛ А Ͳݯ ಋ ɣ෯ Хዀ ؿ ΔϽe כ ผ Ϸ Թι d ঢ় ଐɈ ᗲ ଉ ࡗɮА ٲ ଊ೩ ܧ ೪c ɣ ιగcɣ ʵ Ϭ eΐϊcಲሃࠍ Є ᏜᇰᎾc Շ ߎɐɰॶι К ר шྊe ک ผΈ ԯˢΐ ᄧᚊc ࠨ ॶᎶ ϬΣeɐտ ؿ шᗒྊ ɰι پ cяߎɉтಕг ऩ ר d૭ҽг ༦ cగᜑ ࠨ ௐϬɯc ס ಳ ٴ અ Ԟ ܥؿ ኝe ұ c ʥ၀ᓯɮѵe ผᒖಳᄈ ȿᑩԑ ᅕcԎɺᒾ ณଐ ۂ ר cўʋॶ Ұ ᑩԑ ؿ Ꮺ ι ၐ ܛ ΕȹȾȾɍ ĀȹȾȾ α۹ տ ˋؿ e c ಋ Ꮬठ c ɐ ڈ ێ ދا ट ಳ Ԟ ࠍ ؿ ᄧᚊc ʥ ڈ 50 Thousands throng the Club s Job Fair held in May. ಋᑩ ผ າ ᙴ כ ʄ ᐾϷ cмʵէ ᅕ ؿ Ꮆᄩ ᇼᓻϽe

3 Responsible gambling Government policy restricts gambling, other than social gambling, to authorised outlets to ensure that while demand is met, possible harm to the community is minimised. The Club has a long-standing commitment to provide betting in a socially responsible way, in particular through restrictions on under age and credit betting. In line with its Responsible Gambling Policy, the Club displayed messages about problem gambling and additional messages about under-age betting and began briefings and training sessions on responsible gambling. The Club approved a contribution to Government of HK$24 million over two years and a further HK$12 million to HK$15 million per year over the next three years to address gambling-related problems through research, education and care services. HKSAR Chief Executive Tung Chee-hwa presents Stable Groom Yeung Yuk-wing with Government s Outstanding Disabled Employee Award Together: Yes! Can Do! The Club s workforce is loyal and dedicated. Nowhere was this more evident than in the SARS crisis. Though some staff took ill and tragically one colleague passed away, employees stood shoulder to shoulder to keep the Club up and running. Behind them was a team effort to ensure staff were fully protected and medically supported. At a time of great anxiety, it was Yes! Can Do! at its very finest. The Club conducted an Employee Communications survey and it was encouraging to see strong support and understanding of the Club s goals and objectives. Several departments since have undertaken team building and communication initiatives: Finance division s Creative Communication Workshop, the IT Team Forum and Membership s Our Journey to Excellence, for instance. We launched a Suggestion Olympics in March with awards and recognition for accepted suggestions. Five Bronze medals have been awarded so far and we look forward to awarding Silver and Gold medals in the new season. Organisational development To equip employees for our developing business environment, the Club launched a new learning and development strategy in 2003 based on eight core competencies of strategic management, leadership, management skills, personal effectiveness, communication, customer service, IT and business knowledge. 51

4 Review of operations: Corporate management Our Talent Development Programme for managers provides opportunities for academic study and practical exposure to management tasks. Membership s Our Journey to Excellence was honoured this season with the Best Practice Management Award for Training and Development. In Racing, the successful Racehorse Management Programme, which has already helped several Assistant Trainers further their careers, was extended to Stable Supervisors, Assistant Stable Supervisors and Work Riders. Employees also are encouraged to develop skills through outside study. This year, 105 scholarships were approved. In all, 336 employees gained higher academic qualifications in the last decade. Staff participates in exercise sessions organised during the SARS epidemic. Corporate Wellness Healthy in mind and body has long been the rallying cry of our Corporate Wellness campaign. Fitness workouts and lunchtime workshops have continued this season, with a particular focus during the SARS outbreak on personal and family hygiene. A new phase of the campaign is already underway. A critical area for health and safety is our Racing division. The Occupational Safety and Health Council was set up to promote safe working practices. Front-line stables and property staff participated in a Safety in Action programme. The programme received one of the three awards the Club picked up at this year s Hong Kong Occupational Safety and Health Awards. The Veterinary Department was separated into Clinical Services and Veterinary Regulation & International Liaison to provide a clearer distinction between the two functions. Award winning performance The diversity of the Club s talent has again been honoured this season. From the true grit of Yeung Yuk-wing, a stable groom whose success in overcoming disability won him Government s Outstanding Disabled Employee Award, to the 2002 Hong Kong Award for Industry (Technological Achievement) for the Club s innovative CIT-PDA betting device. But perhaps most encouraging was the Club s selection as Hong Kong s Top Superbrand by Superbrands magazine, recognition of the Club s successful efforts to bring a new era of sporting entertainment and charity support to Hong Kong. 52 IT

5 Hong Kong Jockey Club organisation Board of Stewards Chief Executive Lawrence T Wong Executive Director, Finance Paulus S Lee Executive Director, Racing Winfried Engelbrecht-Bresges Executive Director, Betting Henry S K Chan Executive Director, Membership Services Billy K C Chen Executive Director, Charities and Corporate Secretariat William Y Yiu Executive Director, Corporate Development Kim K W Mak Executive Director, Information Technology Steve W Beason Finance, Treasury Racing Registry; Handicapping, Race Planning and International Racing; Racing Operations and Equestrian; Racing Laboratory; Veterinary Clinical Services, Veterinary Regulation and International Liaison; Racing Control; Apprentice Academy; Property Betting Operations, Cashbet, Telebet, Betting Services and Systems, Customer Management and Interactive Services Membership Services, Catering, Happy Valley Clubhouse, Sha Tin Clubhouse, Beas River Country Club Charities, Corporate Secretariat, Audit, Jockey Club Kau Sai Chau Public Golf Course Corporate Marketing, Market Research and Planning, Broadcasting Services, Public Affairs, Strategic Purchasing and Administration, Human Resources Systems Development, IT Architecture, IT Infrastructure, IT Quality Control, IT Operations, IT Business Planning Executive Director, Security and Corporate Legal Services Security Operations, Data Security, Security Investigations, Legal Services Timothy P McNally Best Practice Management Superbrands 53

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