SOUTH AFRICA RACING INTO THE FUTURE Cindy:. SOUTH AFRICA

SOUTH AFRICARACING INTO THE FUTURE

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SOUTH AFRICA

First Race Meeting held 1804

Jockey Club Founded in Port Elizabeth in 1882

Jockey Club moved to Johannesburg in 1904

THE NHA : Racing

THE NHA : Structure of Board

7 Directors elected regionally by members

4 Directors appointed by - Gold Circle - Phumelela - Breeders - Owners

Chief Executive

2 Co-opted to achieve transformation

THE NHA :Regulatory System

the maintenance and operation of the General Stud Book;

the licensing and/or registration of all relevant participants in the sport;

the formulation and revision of the rules of the sport and of breeding;

the monitoring of training and the regulation of racing;

THE NHA : Regulatory System

(Continued)

the operation of a laboratory to discourage the use of prohibited substances;

the operation of an effective disciplinary and appeals system;

the recording and publication of all relevant data on the sport;

the handicapping of horses.

Racing Operators : Racecourses

Phumelela - Turffontein

- Newmarket

- Vaal

- Bloemfontein

- Kimberley

- Arlington

- Fairview

Gold Circle - Greyville

- Clairwood

- Scottsville

- Kenilworth

- Durbanville

CONSOLIDATION

Racing divisionBetting

divisionManagement

Racing divisionBetting division

Management

• Tellytrack• International• Saftote• Publishing

TRAINING CENTRES13 RACE CLUBS 7 TOTES

BROADCASTING TRANSPORT

CONSOLIDATION

SOUTH AFRICAN PROVINCES

1

1.5

2

2.5

3

3.5

2001 2002 2003 2004 2005(R)

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lion

s

NEW BUSINESS MODEL

INCOME Stabilised Growth

COST Restructured / reduced

Sustainable profitability

• Increased interest in racing

• Increased turnover• Continuity• Reduced risk• Better asset

utilisation

Benefits of imported simulcast

IMPORTATION OF NEW PRODUCTS

MAURITIUS

ZIMBABWE

UK

DUBAI

USA

HONG KONG

FRANCE

KENYA

EXPORT OF SA RACING

USA UKASIA

EUROPE

• Income• Larger pools• Development of

expertise and experience

Benefits of exported simulcast of South African racing

UK RACETRACKS

(Super Tracks in bold/gold)

•4

•27•31

•2

•5

•6

•1

•8

•10

•13

•11•16

•26•12

•14

•20

•21

•3•9

•15

•17

•18

•23•29

•19

•30

•22•28

•25

•24

1 Aintree 16 Kempton Park2 Ayr 17 Ludlow3 Bangor-On-Dee 18 Market Rasen4 Beverley 19 Musselburgh5 Carlisle 20 Newbury6 Cartmel 21 Newmarket7 Catterick Bridge 22 Nottingham8 Cheltenham 23 Pontefract9 Chester 24 Redcar

10 Doncaster 25 Salisbury11 Epsom Downs 26 Sandown12 Goodwood 27 Thirsk13 Hamilton Park 28 Warwick14 Haydock Park 29 Wetherby15 Huntingdon 30 Wincanton

31 York

INTERNATIONAL SIMULCAST

International Broadcasting

USA, UK, Russia, Belgium, France, Kenya, Ghana, Italy, Spain, Germany, Tasmania, Austria, Mauritius and Zimbabwe

DUBAI

INTERNATIONAL SIMULCASTING CHALLENGES

• Total service provision• Commingling• Regulatory / tax issues• Risk assessment• Exchange control risks• Piracy / betting exchanges

GLOBALISATION OF RACING

Where do you stand?

RACING STATISTICS

Season Ended 31 July 2004

• 12 Racecourses

• 436 Race Meetings

• 3 965 Races

• 176 Trainers

• 125 Jockeys

• 6 190 Horses in Training

• 41 840 Starters

• R179 088 335 Stakes Paid

RACING STATISTICS

Betting Turnover

• 30 April 2005 - R6,610 Bn

• 30 April 2004 - R5,739 Bn

• 30 April 2003 - R5,619 Bn

• 30 April 2002 - R4,926 Bn

BREEDING STATISTICS

Season Ended 31 July 2004

• 491 Breeders

• 106 Stallions

• 4 272 Broodmares

• 2 950 Foals (Estimated)

National Yearling Sales

2003 2004 2005

Lots Sold 428 457 477

Aggregate Value

63 835 000

89 745 0040,58%

105 140 000

17,15%

Average Price 149 147196 37931,67%

220 41912,24%

Highest Price1 700

0002 000 000

17,64%3 300 000

65%