PRESIDENT’S REPORT

Welcome to the March 2021 issue of Groundswell.

CYCSA YOUTH SAILING FOUNDATION As was announced in our media release dated 8 February 2021 the Board has recently entered into a contract to purchase a fleet of six medium size one design training Elliot 7 Keelboats. We announced in the March 2020 Groundswell that we were undertaking a thorough due diligence and research on the introduction of the Youth Academy. Particular focus was given to getting a clear understanding of the financial consequences of the Foundation. This review considered income streams from various sources including sponsorship of the boats together with the cost of running the Foundation. The conclusion of the Board was that the income streams are achievable. In the unlikely event we have materially understated the revenue stream and the costs of operations, an exit strategy has been developed with a view to mitigate the losses. The programme is due to commence in spring of 2021 and will facilitate the development of the next generation to the sport of sailing. The Foundation aims to develop sailing skills of participants as well as their individual personal development. I am extremely excited about the initiative and look forward to observing its full implementation over the next year or so.

CORPORATE GOVERNANCE COMMITTEE As announced at the Annual General Meeting the Board has introduced a new initiative, driven principally by our Treasurer David Roper, to establish a committee to review corporate governance documentation (eg Constitution, Policies and Regulations, Insurance etc) and protocols in place at the Club and to make recommendations to the Board as they deem appropriate. The Committee comprises David Roper (Chairman) together with myself, Doreen Perrin, Graeme Footer and David Hughes together with our General Manager, Adam Hays. The Committee has met on four occasions and is getting to a point where the first round of recommendations can be made to the Board. The work being undertaken by this Committee will act to fine tune and improve corporate governance throughout all aspects of the Club.

AMENITY UPGRADES The Board has resolved that the male and female amenities be upgraded during the course of this financial year. Three builders were given the opportunity to tender for the work which entails the removal and replacement of all existing fixtures and fittings together with some minor changes to the layout. The three quotes were reviewed by an evaluation team made up of Mark Hutton and Ken Amos who resolved that Building Solutions SA Pty Ltd be engaged to undertake the project. The Board accepted this recommendation and the work is expected to commence in April 2021.

SINKING FUND As the stock market continues to rebound from last year’s losses so does the value of our sinking fund. A graphical representation of its position as at 31 December is as follows Sinking Fund Investment allocation (value at 31 Jan 2021 $5.9m)

Sinking Fund Value

FORECAST FORECAST As well as preparing an annual budget for the CYCSA we also periodically prepare forecasts for the remainder of the year based on the current information. I am pleased to report FORECASTAs well as preparing an annual budget for the CYCSA we also periodically prepare forecasts for the our latest forecast shows we will (assuming no unforeseen remainder of the year based on the current information. I am pleased to report that our latest events occur between now and the end of the financial year) materially exceed both our budgeted and last year’s As well as preparing an annual budget for the CYCSA we also periodically prepare forecasts for the forecast shows that we will (assuming no unforeseen events occur between now and the end of the EBITDA. This strong financial position has enabled the Club to acquire the fleet of Elliot 7s without any further external bank remainder of the year based on the current information. I am pleased to report that our latest financial year) materially exceed both our budgeted and last year’s EBITDA. This strong financial borrowings.forecast shows that we will (assuming no unforeseen events occur between now and the end of the position has enabled the Club to acquire the fleet of Elliot 7s without any further external bank borrowings. financial year) materially exceed both our budgeted and last year’s EBITDA. This ADELAIDE TO PORT LINCOLN RACE The Adelaide to Port Lincoln Yacht Race was recently run position has enabled the Club to acquire the fleet of Elliot 7s without any CORPORATE GOVERNANCE COMMITTEE further external bank despite a smaller turnout than usual. The race was a great success and received much more media coverage this year borrowings. than in prior years. Congratulations go to all our members boats who participated in the race and for those who received line honours, details of which can be found later in the CORPORATE GOVERNANCE COMMITTEE magazine. The autumn months continue to be a great period to enjoy the water. I look forward to seeing you at the Club and on the water.

Dominic Rinaldi CYCSA President