PRESIDENT’S REPORT

Dear Members Welcome to the June issue of Groundswell. Like all other commercial organisations, our Club has not been immune from the social and financial impact of the COVID-19 Pandemic. Since mid-March 2020 the Government has made various announcements in relation to the extent of trading permitted. The Board, together with management, acted immediately to implement procedures to preserve the health of all members and staff and have complied with the rapidly changing obligations as dictated by the State and Federal Governments. We have been cognisant of the disruption these changes have had on members and wherever possible have looked to mitigate the effects of the shutdown. During this time we have maintained our office and maintenance staff together with key hospitality staff. This has ensured the continued maintenance of the marina, the ongoing administration of the Club, together with the kitchen supplying various take home and delivered meals. The effect of maintaining key staff members has enabled as much engagement with members as possible and to position the Club for a return to something that may approximate more normal conditions going forward. The Club has registered for and received the Job Keeper subsidy together with other Government support initiatives. The Board and management have spent a great deal of time undertaking forward estimates and modelling of revenue and expense items based on estimates of the most likely trading conditions. Our modelling has included some sensitivity analysis which considers likely ranges of revenues, variable and fixed costs together with anticipated capital costs, membership numbers and other factors. Our projections indicate that we will continue to be in a sound financial position albeit a small fall in Earnings Before Interest, Taxes, Depreciation and Amortization. Despite the recent easing of restrictions it is very important the Club continues to remain prudently conservative in the management of the Club’s financial affairs. In this regard the Board has resolved to put on hold any major capital expenditure (other than maintenance of the marina) that can be deferred to a period when more financial security prevails. The Board and management are cognisant of the fact that in this uncertain economic environment some members may face financial hardship. The Board believes it is appropriate that the Club should look after these members and as such arrangements can be made on request to management to pay fees by instalment. As additional support to members the Board has resolved - 1. NOT to apply the usual CPI increase to membership and corporate fees in respect to the year ended 31 May 2021. 2. To issue invoices in the usual manner in June 2020 with the opportunity for payments quarterly or over 12 months. 3. To consider specific requests relating to financial hardship in a confidential, compassionate, and timely manner.

SINKING FUND As you were made aware by the Treasurer in his mid year Members Report, Ord Minnett has been engaged by the Club to undertake the day to day administration and recommendations to the Board of the Sinking Fund portfolio. A summary of the Sinking Fund’s performance as of 30th April 2020:

PORTFOLIO: Shares @ market value 3* Preference Shares Cash/Term Deposits 1* Total value of Sinking Fund 30/4/2020 YTD

1,520,038 26% 678,580 12% 3,544,556 62% 5,743,174 31/05/2019 FY

5,237,884 89% 310,460 5% 315,792 5% 5,864,136

Original investment Return on investment to date 5,450,377 5%

INCOME GENERATED: Dividends received 209,077 Profit from sale of shares 386,352 2* 595,429 5,450,377 7%

161,311 22,514 183,825

NOTES* 1. Cash is held in a seperate Sinking Fund bank account. 2. All income received from the Sinking Fund to date has been reinvested. 3. Market value of remaining shares has dropped due to prevailing market conditions. The shares will be held long term until the market improves and values are restored.

Safe boating and hope to see you at the Club or on the water soon.

Dominic Rinaldi CYCSA Persident