Royal Malta Golf Club

1. Royal Malta Golf Club Budget EGM – 29th November 2018

2. Agenda • Present a budget to members for the forthcoming financial year • Present Fee Structure • Course Development plan 2019-2023 (voting) • Capex plans 2019-2023 (voting) • Present for approval by members any planned increase in RMGC borrowings, loans or facilities other than as set out in Rule 6.2 below • Consider any resolution that concerns the budget submitted in line with Rule 5.6

3. RMGC Business Plan • 520 full members (528) • 5,200 visitor rounds (3,500) • 32,500 round capacity (33,800) • Members first policy

5. RMGC Membership numbers • Full & Associate 528 • Young Adult 13 • Junior 10 • Junior Academy 71 • Country 7 • Honorary 14 • Total members 643

6. 2018 General Update Membership (Associate and full) numbers have risen to 528 Green fees rounds up 2% on budget Rounds played YTD – 29,705 Trading LAE - €170,000 = 80% over budget* *including payment in full for new 5th green **from third party activities

7. Key numbers - trading * based on September 18 man accounts + remaining budget forecasts

8. 2018 Cash position Cash in hand € 67,889 ERF fund € 44,190 Course Dev fund €264,843 Total €376,922 Balance CCS €255,000

9. RMGC - Triple Bottom Line

11. 2019 Budget – headlines people • Further investments towards our goal for professional management at the RMGC • Continued working practices improvement • Equal opportunity employment - RCC • Our people – delivering VFM

13. 2019 Budget – headlines planet • Further investment in energy efficient machinery for the course • Development and implementation of a single use plastics policy for the RMGC • First phase – on course drinking stations • Significant tree planting program • Water management review – with the emphasis on power/water savings • PV project

15. 2019 Budget – headlines profit • Trading surplus of 144K forecast – sufficient only to meet ‘cash outflows’ (CCS and ERF) and limited capex • No bank debt and a decent ERF • CSS balance down to around 175K (655K) – 75% of the way home • Essential capex – funded from surpluses and depreciation

16. 2019 Budget – headlines profit cont. • Club resuming rental and reception activities - net benefit €100,000 per annum • Pro shop, range and teaching contracts intact (and improved) • Essential capex – funded from surpluses and depreciation • Course machinery replacements built on FAR story

17. Key numbers - 2019 *including 70K windfall business

18. Course HR

19. Fee Structure 2019 • Members Guest rate unchanged • Members pre-paid offer set at €32 X 3 max • Compulsory bar credit held at €100 • All locker and buggy shed prices remain frozen at least until 2020 • 3.5% increase in all subscriptions categories

20. Course development plan 2019-2023 • 2019 • Course quality step change • Establish new course lengths/ratings/tees • Fencing driving range (SportMalta funded) • Ancillary course upgrades • 2020-2023 • Remaining USGA Spec Greens

21. USGA greens • 2018 • Test green – the 5th • Cost circa €38K • What have we learned ? • 2020-2023 • Remaining USGA Spec Greens

22. Capex plans - Course 2019 • Course • New hybrid fairway mower • New small rough cutter • New greens mini-tractor • New verti-drain

24. Capex plans – Clubhouse and IT 2019 • Clubhouse • Acoustics works Torrens Suite • Acquisition/upgrade of rental equipment • New reception area • New buggy shed

25. Outflows for 2019 Repayment of CCS € 80,000 Exceptional reserve fund € 10,000 Golf Course € 110,000 Clubhouse € 68,500 ICT € 3,000 Total € 271,500 (248,300 in 2018) From trading surplus From surplus & depreciation

26. Thank you